PTI
NEW DELHI, JUNE 25
In the biggest overhaul of labour laws, the government proposes to loosen strict hire-and-fire rules, make it tougher for workers to form unions as well as raise by three times the severance package to protect employee interest, Labour Minister Bandaru Dattatreya has said. As part of plan to make it easier to do business in the country and create jobs, the Labour Ministry has drafted a bill to integrate three laws -- Trade Unions Act, Industrial Disputes Act and Industrial Employment (Standing Orders) Act -- into a single code for industrial relations, the minister told PTI in an interview here. “Labour reforms are needed in the present context to make conducive environment for business to flourish and create harmonious atmosphere between industry and workers because our main purpose is that employability should be increased,” he said. Labour laws, he said, need to be looked with a new perspective. “For that you need to have simplification and rationalisation of laws. But that will not be at the cost of workers’ interest. Workers’ right will be protected. But at the same time for increasing employability, ease of doing business in necessary,” he said. The draft allows companies hiring up to 300 workers to lay them off without seeking official sanction. At present, industries hiring up to 100 workers are allowed to lay off without permission. But to protect worker interest, the notice period for establishments to fire employees or shut down a unit has been proposed to be raised to three months from one month now, he said. Also, retrenched workers will be paid an average salary of 45 days, three times the current 15 day limit. Besides, a worker will be allowed to object to being laid off within three years, against no clear period specified in the law now. Dattatreya said that to take labour unions on board, tripartite consultations are on and the Prime Minister has formed a ministerial committee headed by Finance Minister Arun Jaitley to address issues raised by them. The Bill is not slated to come in the ensuing monsoon session of Parliament next month as more consultations are needed, he said. Major trade unions, meanwhile, are unhappy with the proposals and have called for a day-long on September 2. Unions are also opposed to Small Factories bill which proposes to keep units employing less than 40 workers out of the purview of 14 labour laws including EPF & MP Act 1951, ESI Act 1948 and Industrial Dispute Act 1947. “We are trying to get everyone on board. Besides the tripartite consultations, I am also holding regional consultations in various cities to convince them that the proposed changes are not anti-worker,” Dattatreya said. He said unions were not opposing all amendments to labour laws as there are good moves also like increasing compensation for the workers from 15 days to 45 days for each completed year of service under the new industrial relations code. “The objective behind the entire exercise is to strengthen the social security net for labourers and to ensure compliance of laws,” he said. “This is to make hiring flexible and bring more workers under labour legislation.” The new law would make all employees eligible for minimum wage but will make it tougher for them to form unions or go on strike. The minister said only employees will be allowed to form unions and no outsider can be an office-bearer of the union in the organised sector. In the unorganised sector, two outside representative can become members of a union. Under the proposed bill, workers cannot go on strike during conciliatory proceedings. Against the present provision of workers in the public utilities giving a notice, it bars strikes in all establishments without a prior six-week notice. Mass casual leave will be considered a strike. If more than half the workers are on casual leave, it will be treated a strike. Various arbitration forums including the labour court are proposed to be scrapped. But the industrial tribunal will continue.
