Friday 23 March 2018






LABOUR LAW AMENDEMENTS 2017-2018


The Indian government has been actively working to raise the country to among the top 50 in the World Bank's Ease of Doing Business rankings. In the most recent survey, India jumped 30 positions to 100 and was recognized as one of the top 10 improvers and the only large country to have achieved such a significant shift in a year's time.
Keeping a view of Welfare,Health  and Safety of the employees the labour department of India is simplifying labour laws. The central government of India is making an exercise to group 38 labour acts into 4 labour codes.

They are
 1..code on wages,
2.. code on industrial relations,
3.. code on social security and
4…code on occupational safety-health & working conditions.

1..Amendment To The Payment Of Bonus Act:

The eligibility limit for bonus has increased to 21000 Rs from 10000 Rs and the bonus ceiling limit was also increased to 7000 Rs from 3500 Rs.

2..Payment Of Wages Act 2017:

Now employers can pay wages either by currency or cheque or direct credit into their bank account without obtaining written authorisation from the employees.

3..Maternity Benefit Amendment Act 2017:

The maternity leaves for women employees have increased from 12 weeks to 26 weeks.

4..Child Labour (Prohibition and Regulation) Amendment Act 2016:

This amendment made a complete ban on employing children below 14 years of age.

5..The Employee Compensation (Amendment) Act:

As per this amendment, every employer has to immediately inform the employees about their rights to compensation in both written and electronic forms either in English or Hindi or local language which can be understood by the employee.

 6..A Model Shops and Establishments (RE&CS) Bill 2016

This bill provides a freedom to the establishments to operate for 365 days in a year without any restrictions on opening and closing timings.
The Government of Maharashtra has notified the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 with effect from 19 December 2017. The Act replaces the erstwhile Maharashtra Shops and Establishments Act, 1948.

Applicability

The Act is applicable to all establishments in the State of Maharashtra, employing 10 or more workers.

Registration of establishments with 10 or more workers

Every establishment employing ten or more workers shall register under the Act by making an application in the prescribed manner. The application is required to be made within 60 days from the date of commencement of this Act or the date on which the establishment commences its business. Small Businesses gets the benefits of the same.

7...Ease of Compliance to maintain Registers under various Labour Laws Rules, 2017

      In a move to make it easier for employers to comply with certain labor laws, the Indian government reduced from 56 to 5  the number of registers employers are required to keep under nine different federal level labor statutes. Employers are permitted to maintain these registers in electronic form as long as the integrity, serial numbers, and contents of the columns of the consolidated registers are not modified.

Similarly, the number of forms and returns employers are required to file under three federal labor laws has been reduced from 36 to 12 by eliminating redundancies and duplications

8…The Workmen’s Compensation Act

 ( a).. THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009 and wherever "workman" or "workmen" is mentioned in the entire Act the same needs to be read as "Employee"
  ( b).. The compensation payable on death from the injury, is
              (i) minimum of Rs.80000 is increased to Rs.120000 or
             (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.
(c) The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied by the relevant factor.
 (4) Definition of wages remains unaltered.
(5) For the purpose of claims settlement actual monthly wages have to be calculated without ceiling of Rs.4000/- which will lead to multifold increase in claim outgo. Revised monthly wage ceiling limit of 50% of Rs.4000 increased to Rs.8000-Employees Compensation Act for maximum compensation calculation.

9.. The Maternity Benefit (amendment )Act,2017

The Maternity Benefit Act 1961 protects the employment of women during the time of her maternity and entitles her of a ‘maternity benefit’ – i.e. full paid absence from work – to take care for her child. The act is applicable to all establishments employing 10 or more persons.
The extension of maternity leave to 26 weeks, placing India among the top three countries in generosity of maternity benefits

10.. Rights of Persons with Disabilities Act, 2016,
      The salient features of the Bill are:
  1.Disability has been defined based on an evolving and dynamic concept.
 2. The types of disabilities have been increased from existing 7 to 21 and the Central Government
          will have the power to add more types of disabilities.
  3..Creation of National and State Fund will be created to provide financial support to the persons with disabilities. The existing National Fund for Persons with Disabilities and the Trust Fund for Empowerment of Persons with Disabilities will be subsumed with the National Fund.
  4..The Bill provides for penalties for offences committed against persons with disabilities and also violation of the provisions of the new law.
   5..Special Courts will be designated in each district to handle cases concerning violation of rights of PwDs.

 11..      Employees' State Insurance Act, 1948
            By way of said Amendment Rules the Ministry raised wage threshold to INR 21,000 from  
          current INR 15000,to receive the benefits of ESI and to provide coverage to more
            employees.

12..The Gratuity  Act  OF 1972(AMENDEMENT)
     The Gratuity act was amended on Thursday 22nd March 2018 .Payment of Gratuity act  
      (Amendment) Bill 2017
    a.  Hiring of  industrial workers  on a fixed term contracts allowed.
   b. any worker hired on contract for a fixed period is entitled to gratuity even if his period of    
        employment does not extend to the qualifying period  of employment as required under
        the  said statute.
   c… worker hired on contract basis are now entitled to
          1..PF..        2    ESI benefits   3  Bonus   4 Gratuity 5  Other compensation
 d..  those workers in permanent employment for a continuous period of 5 years and more are   
        entitled to receive gratuity when they leave the organization.
e. .Now Private sector workers will receive the same tax advantage which government  
     employees were enjoying till date. Now Rs 20 lacs gratuity tax free..

13. Industrial Employment (SO) Central (amendment) Rules
      Defn: Industry now includes all those who are employed in service Estd ,with a work force of
      at least 10 or more employees

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