I think it's high time the citeHR administration should try to pool/consolidate all the opinions, suggestions, counters expressed in the forum and submit the rejoinder to the Ministry in response to the notification issued by the Government of India before the bill takes shape of amendments to the respective Acts/Laws. Let this be a contribution of the Forum.
From India, Bangalore
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1273From India, Bangalore
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The new Act will cover establishments employing fewer than 10 workers, which were not under the coverage of the present Factories Act. However, certain industries are covered even if they employ a lesser number of workers, through state government notification as empowered by section 84 of the Act. It seems acceptable for such companies because, at least, some kind of administrative and statutory control will be imposed on them. This will result in enforcing some service conditions through which workers can benefit from the provident fund and other social welfare benefits.
But when we start covering factories in which 39 workers are employed under the new Act, there will be a lot of confusion. This confusion arises mainly because many such factories would already be under the statutory regulations of the Factories Act, and the workers would be receiving statutory benefits like PF at 12% instead of 10%, as proposed in the new Act. Similarly, ESI at 1.75% instead of 10% as proposed by the new Act, leaves, holidays, etc.
Therefore, as suggested by Kumar, it is high time that we take this matter seriously before the Act is passed.
Madhu.T.K
From India, Kannur
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But when we start covering factories in which 39 workers are employed under the new Act, there will be a lot of confusion. This confusion arises mainly because many such factories would already be under the statutory regulations of the Factories Act, and the workers would be receiving statutory benefits like PF at 12% instead of 10%, as proposed in the new Act. Similarly, ESI at 1.75% instead of 10% as proposed by the new Act, leaves, holidays, etc.
Therefore, as suggested by Kumar, it is high time that we take this matter seriously before the Act is passed.
Madhu.T.K
From India, Kannur
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Views on The Small Factories (Regulation of Employment and Conditions of Service) Act, 2014
Disadvantages (in brief):
1. Many benefits hitherto available are lost when the workforce is fixed at 40.
2. The time frame is relaxed for paying terminal benefits (at the employer's discretion).
3. Terminal benefits such as leave salary, gratuity, etc., are denied in disciplinary cases.
4. Factories can close at will and then inform the relevant authorities.
5. The quantum of penalty that can be imposed on a worker for any default is unspecified.
6. In case of worker default, losing the case results in coughing up 25% of the claimed amount.
7. Working hours can range from 8 to 12 hours (in split shifts).
8. Maternity leave in case of a miscarriage is reduced to 30 days from the current 6 weeks/42 days.
9. Provident Fund subscription is set at 12%, with various benefits under the Provident Fund Act being lost (funeral expenses, EDLI, and the government's 1.16% contribution are missing).
10. The Employees State Insurance Corporation of India is not available.
11. The responsibility for the insurance scheme, previously borne by the factory management, now includes a 10% recovery from the worker. This kind of health and medical scheme with a significant contribution is unprecedented in the country.
12. Under the ID Act, the number of eligible workers has been reduced to 51%.
13. All workers must support a complaint for it to be registered.
14. There is no mention of union registration and recognition, except in cases of recognition cancellation.
15. Some acts mentioned in the draft are deemed not applicable.
The management is empowered to implement the "HIRE AND FIRE" policy.
From India, Nellore
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Disadvantages (in brief):
1. Many benefits hitherto available are lost when the workforce is fixed at 40.
2. The time frame is relaxed for paying terminal benefits (at the employer's discretion).
3. Terminal benefits such as leave salary, gratuity, etc., are denied in disciplinary cases.
4. Factories can close at will and then inform the relevant authorities.
5. The quantum of penalty that can be imposed on a worker for any default is unspecified.
6. In case of worker default, losing the case results in coughing up 25% of the claimed amount.
7. Working hours can range from 8 to 12 hours (in split shifts).
8. Maternity leave in case of a miscarriage is reduced to 30 days from the current 6 weeks/42 days.
9. Provident Fund subscription is set at 12%, with various benefits under the Provident Fund Act being lost (funeral expenses, EDLI, and the government's 1.16% contribution are missing).
10. The Employees State Insurance Corporation of India is not available.
11. The responsibility for the insurance scheme, previously borne by the factory management, now includes a 10% recovery from the worker. This kind of health and medical scheme with a significant contribution is unprecedented in the country.
12. Under the ID Act, the number of eligible workers has been reduced to 51%.
13. All workers must support a complaint for it to be registered.
14. There is no mention of union registration and recognition, except in cases of recognition cancellation.
15. Some acts mentioned in the draft are deemed not applicable.
The management is empowered to implement the "HIRE AND FIRE" policy.
From India, Nellore
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