Mr Chandrajit Banerjee, Director General, CII, said, "The four new Labour Codes introduced by Ministry of Labour & Employment have significant positive implications for Indian industry and represent a landmark reform of the labour regime of the country. The new definitions of wages and factories, stronger safety norms and expanded social security coverage to the gig economy require stakeholders to reorganize and strategize for the smooth implementation of the Codes and shape the employment ecosystem in the country. These reforms will help India improve the Ease of Doing Business, attract investment and lead to massive employment generation".
CII recommendations -
? Regarding exclusion of allowances such as contractual bonus, performance linked bonus, joining bonus, employee referrals, periodic payment etc it is recommended to clarify with illustrations which allowances are part of the Wages.
? The formula for Gratuity calculation and other should be implemented as prospective.
We have drawn up a detailed recommendation that we have submitted. I would just like to highlight few key points:
Occupational Health Safety & working Condition (Central) Rules, 2020:
? Appointment Letter: The format of the appointment letter should not be mandated; it should be as per the requirements of each Organization. There can 4-5 essential information which can be mandated to incorporate in the Company’s Appointment letter.
? Journey Allowance: is required to be provided if an inter-state migrant workman completes 180 days with an employer in a calendar year. The time period spent with previous employment should not be considered for a current employer to pay Journey Allowance, hence provision for including time period spent in previous employment for purpose of arriving at qualifying period must be removed.
? Single License for Contractor in more than one States: The way the rules provide for auto generation of certificate of registration within seven days, on similar lines, in Section 72 Government should also allow auto generation of the Single Labour License within 30 days of the application made by the contractor, including the consultation period.
? Daily and weekly working hours: If Employer is working five day a week, the flexibility to spread the 48 hours should be given to Employer.
? Need clarity on - definition of Display Boards – Include Intranet, Boards, Electronic, Physical.
? Under the OSH Code, 2020 – First Schedule – Cigarette is listed as hazardous process. Manufacturing of cigarettes is not harmful, as per the definitions of hazardous process and substances, none of the cigarette factories qualify as having hazardous processes or hazardous substances therefore we request you to kindly remove it.
Code on Social Security (Central) Rules, 2020:
? Need clarity on the criteria for establishing Creches: Establishment employing fifty employees or fifty “Women” employees.
? The provision should be provided that the employer reimburses the cost of the creche facility availed of by the employee subject to ceiling per month”
? There is a need to specify the rate of contributions of Employee & Employer under Provident Fund in rules under Social Security Code. It is recommended to retain the existing ceilings and contribution rates.
Ease of Compliance:
? Gratuity: Chapter V, Rule 34 should be amended: Form-III to have point number-7 as bank account details of nominee and Rule-34 should be amended to make it the employee’s duty to update the same. This will help Employer in having latest nominee details at any point.
? Rule 35, 1 (a) should be a simple rule. An employee who is eligible to get gratuity within 30 days of his last working day should be given. But “In case remittance cannot be made due to infirmities for example bank account details or other an employer should notify the nominee with Form-IV requesting the nominee to fill the relevant details therein and return it to the employer with complete details”
? Rule-14: Form, Manner, Time Limits and Fees for Filing Appeal: The Presiding power of Tribunal should have the discretion to waive the 25% deposit required before filing the appeal.
? Rules 37- Form of notice for Maternity Benefits: Employer should pay maternity benefit on monthly basis as and when he gets the intimation about it. The provision to provide benefits should be simple, there is no need to give proofs, notice etc. for disbursement of maternity benefit, it can be paid in a routine manner therefore production of Form-X should be made the exception and not the rule.
12 January 2021