Labour reforms, 31st dec, 2015

Labour Laws (Gujarat Amendment) Act, 2015

-Mr. YagnikSojitra

Labour Laws Covered in Reforms

▪ The Employee’s Compensation Act, 1923▪ The Industrial Disputes Act, 1947▪ The Minimum Wages Act, 1948▪ The Contract Labour (Regulation and Abolition) Act,

1970▪ The Payment Of Bonus Act, 1965▪ The Unorganized Worker Social Security Act, 2008

▪ The Payment Of Gratuity Act, 1972▪ The Motor Transport Worker Act, 1961▪ The Beedi Cigar Worker’s (Condition Of Services) Act,

1966▪ The Equal Remuneration Act, 1976▪ The Factories Act, 1948▪ The Building And Other Construction Workers

(Regulation Of Employment And Conditions Of Services) Act, 1996

The Employee’s Compensation Act, 1923

If An Employee Has A Fatal Injury By An Accident Occurred At Workplace, Or Has

Sustained Total Or Partial Disabilities, The Victim Or His Dependent May Apply Under The Employees Compensation Act , 1923, Before The Employees Compensation Commissioner.

Due To Lack Of Knowledge and Legal Awareness worker is deprived in getting compensation

Existing

Amendme

nt

Benefit

Section 22

{1(A)}

The Industrial Disputes Act, 1947

• Notification For Initial Period For 6 Month.

• And Next Renewed Notification Was For Not Exceeding 6 Month.

Existing Act.

• Notification For Initial Period For 1 Year .

• Renewed For Not Exceeding 2 Years.

New Amendmen

t • Industrial peace• Increase in

productivity and uninterrupted employment

Benefit

Public Utility ServiceUnder This Act The

Industry Specified In The First Schedule And They Are In Emergency

Or Public Interest Services They Are

Prohibited For Strikes And Lock Out Except

Referred In Section 22.

Sectio

n

2(n)


Existing Act

• For reinstatement labour can apply within three years.

Amendment

• The time limit is decreased to One year.

Benefit

• It will increase awareness in labour and speedy disposal and justice

Section

2{a(3)}

Earlier if an employee is retrenched from the industry then he has to file his application before labour machinery within three years of retrenchment


• Special economic Zone is covered.Existing

• S.I.R, All 100% E.O.U, N.I.M.Z Included.

Amendment

• Increase Investment

• Increase Employment.

Benefit

Section

25{v(2)}

In The Existing Act It Was Only Applicable For S.E.Z Now Three New Zones Are Added In To This That Are S.I.R, All 100% E.O.U, N.I.M.Z.


BenefitIncrease in compensation will help in

financial rehabilitation of worker

New Amendment60 Days compensation/ Every completed Year

Existing45 Days compensation/ Every completed Year

Sec 25 (z)

(a)

(1)(b)

In This Act No Workman Employed In Any Industry Who Has Been In Continuous Service For Not Less Then One Year Under An Employer Shall Be Terminated By That Employer.


Existing No Provision

Amendment

Compounding can done in Sec - 25(q), 25(r), 25(u), 26, 27, 28, 29, 30(a), 31(1),

31(2).

BenefitCompounding only after application.

Compounding only after compliance of workers

grievance.

100% Compounding amount distributed to

affected worker.

In case workmen are not identifiable,

compounding amount is deposited in Gujarat unorganized workers

social security board.

Sectio

n

31(A)Section Description 25(Q) Penalty for layoff and

retrenchment with out previous permission.

25(R) Penalty for closure25(u) Penalty for committing unfair

labour practices.26 Penalty for illegal strikes and

lockouts.27 Penalty for instigation etc.28 Penalty for given financial aid

to illegal strikes and lock-outs.29 Penalty for breach of

settlement or award.30(A) Penalty for closure without

notice.31(1)&(2)

Penalty for other offences.


Existing• There are 11

entries at present in fourth schedule of this Act.

Amendment• Entries No. 6

And 11 deleted from the fourth schedule.

Benefit• To increase

productivity.

Amendment of

fourth schedule

The Minimum Wages Act, 1948Sectio

n

2(e)

There is no expressive provision of out sourcing agency in the employer’s definition

In this amendment “out sourcing” agency is Included in the definition of employer.

The exploitation of employees employed by outsourcing agency will be prevented.

The word “Outsourcing Agency “ is inserted in the definition of employer.

The Minimum Wages Act, 1948Sectio

n

11(1)

Industry Who Comes Under Factories & Gujarat Shops And Establishment Act,1948 And employing more than 20 Employees.

Wages paid by cash.

This Amendment Will Bring Transparency In Paying Minimum Wage And Will Protect Laborers From Their Economic Exploitation.

Existing Amendment Benefit

Enhancement of Penalty

Penalty Amount is meager.

• The Industrial Disputes Act,1947• The Minimum Wages Act,1948• The Equal Remuneration Act,1976

The Penalty amount is increased upto Rs.21000.Compliance will increase

Act Covered Existing Provision

Amendment &

Benefits

Self Certification cum Consolidated Annual Return Scheme

Act Covered ExistingAmendment & Benefits

No Provision

• Statutory Enrollment to the Scheme for notified establishments.• Audit and Assessment for compliance of labour standards.• Exemption from routine Inspection• Awards and incentives to employers subject to outcome of audit and assessment.

• The Minimum Wages Act,1948•The Factory Act,1948•The Contract Labour (R&A) Act,1970•The Payment of Bonus Act,1965•The Payment Of Gratuity Act,1972

Compounding of Offences

Existing No Provision

Amendment

Compounding can be done subject to conditions.

BenefitCompounding only after application.

Compounding only after compliance of workers

grievance.

75% Compounding amount distributed to

affected worker.

In case workmen are not identifiable,

compounding amount is deposited

in Gujarat unorganized

workers social security board.

Act Covered

• The Industrial Disputes Act,1947• The Minimum Wages Act,1948• The Equal Remuneration Act,1976•The Motor Transport workers Act,1961•The Contract Labour (R&A) Act,1970•The Payment of Bonus Act,1965•The Payment Of Gratuity Act,1972•The Beedi Cigar workers Act,1966

The Building And Other Construction Workers (Regulation Of Employment & Conditions Of Service)

Act,1996

Section 2(E)(ii)

Workmen who draws wages exceeding Rs. 1600/- Per Month.

More employees will be benefited.

Workmen shall draw wages three times more than the monthly wages of the skilled labour.

Existing

Amendment

Benefit

The Unorganized Workers Social Security Act, 2008

Existing• There are six

acts at present in schedule II of this act.

Amendment• Entry No:2 (i.e.

Industrial Dispute Act 1947) is deleted from the schedule.

Benefit• More employees

will be benefited.

Thank You