Among its initiatives to make doing business in the country easier, the labor ministry will on September 1 launch a scheme to liberalize the way inspection for compliance with labor-related laws is done. In what could be a move to crack down on the so-called inspector raj, the new inspection scheme will take away inspectors' discretionary powers.
The next such initiative will be a unified portal, to be launched on October 2, that will serve as the common platform for employers to file their annual returns and compliance & inspection reports.
"These steps will bring a paradigm shift in the way the country is viewed and help boost India's ranking in ease of doing business," said a senior labor ministry official asking not to be named.
The new inspection system will initially cover 16 of the 44 Acts administered by the Union labor ministry, including the Industrial Disputes Act, 1947. It will have three kinds of inspections - the areas where inspection is mandatory, those where it is optional, and the instances where it is based on compliance. All inspections for the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC), besides those in the ambit of the Chief Labor Commissioner and the Directorate General of Mines Safety (DGMS), will be covered under the new scheme.
Under this system, mandatory inspections will be done only in extreme cases. For instance, if a fatal or serious accident has taken place, or in the cases of continuous strikes or lockouts. Optional inspections will be automatically generated through a system on the basis of the priorities of the organization concerned.
For the inspections based on compliance, a Central Analysis and Intelligence Unit (CAIU) will be set up to analyze and collect field data; the cases will be referred to this unit for evidence-based approval for inspection.
An inspector will then have to file his or her report within three days of going to the field. "The inspectors sometimes use their powers to harass both employees and employers. The new system will make them more accountable and take away their discretionary powers. The inspectors cannot go to inspect of their own accord. And their reports will not be considered valid if those are not uploaded within three days of inspection; action will be taken against them in the event of delay," said the official.
The unified web portal will make the compliance process easier for industry and initially cover 16 central laws. Through this portal, the companies could file their annual returns and inspection reports and the format for these would be simpler from those in force at present. This integrated portal will operate through a unique labor identification number for each employer or establishment. The employers will be allotted a labor identification number (LIN) after registration on the web portal.
"This will provide easier returns for designated Acts, a simpler format for annual returns, and a window for inspection reports," the ministry official said.
The annual return has been reduced from an 80-page long format to a five-page document. Similarly, the inspection reports have also been reduced considerably.
"These steps will curb manual interference and encourage the use of technology so that the industry can engage in a better manner with the labor department," the official added.
EPFO, DGMS, and ESIC have begun the initial work to put the new systems in place by August 31.
Source:
[Labour reforms: Govt to scrap inspectors' discretionary powers | Business Standard News](http://www.business-standard.com/article/economy-policy/govt-scheme-to-relax-labour-inspection-114080700033_1.html)
From India, Malappuram
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1454The next such initiative will be a unified portal, to be launched on October 2, that will serve as the common platform for employers to file their annual returns and compliance & inspection reports.
"These steps will bring a paradigm shift in the way the country is viewed and help boost India's ranking in ease of doing business," said a senior labor ministry official asking not to be named.
The new inspection system will initially cover 16 of the 44 Acts administered by the Union labor ministry, including the Industrial Disputes Act, 1947. It will have three kinds of inspections - the areas where inspection is mandatory, those where it is optional, and the instances where it is based on compliance. All inspections for the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC), besides those in the ambit of the Chief Labor Commissioner and the Directorate General of Mines Safety (DGMS), will be covered under the new scheme.
Under this system, mandatory inspections will be done only in extreme cases. For instance, if a fatal or serious accident has taken place, or in the cases of continuous strikes or lockouts. Optional inspections will be automatically generated through a system on the basis of the priorities of the organization concerned.
For the inspections based on compliance, a Central Analysis and Intelligence Unit (CAIU) will be set up to analyze and collect field data; the cases will be referred to this unit for evidence-based approval for inspection.
An inspector will then have to file his or her report within three days of going to the field. "The inspectors sometimes use their powers to harass both employees and employers. The new system will make them more accountable and take away their discretionary powers. The inspectors cannot go to inspect of their own accord. And their reports will not be considered valid if those are not uploaded within three days of inspection; action will be taken against them in the event of delay," said the official.
The unified web portal will make the compliance process easier for industry and initially cover 16 central laws. Through this portal, the companies could file their annual returns and inspection reports and the format for these would be simpler from those in force at present. This integrated portal will operate through a unique labor identification number for each employer or establishment. The employers will be allotted a labor identification number (LIN) after registration on the web portal.
"This will provide easier returns for designated Acts, a simpler format for annual returns, and a window for inspection reports," the ministry official said.
The annual return has been reduced from an 80-page long format to a five-page document. Similarly, the inspection reports have also been reduced considerably.
"These steps will curb manual interference and encourage the use of technology so that the industry can engage in a better manner with the labor department," the official added.
EPFO, DGMS, and ESIC have begun the initial work to put the new systems in place by August 31.
Source:
[Labour reforms: Govt to scrap inspectors' discretionary powers | Business Standard News](http://www.business-standard.com/article/economy-policy/govt-scheme-to-relax-labour-inspection-114080700033_1.html)
From India, Malappuram
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Yes, it is being welcomed by all, and it is a lesson to the tension-creating inspectorate. But at the same time, managements should come forward ethically to protect the rights and general and specific benefits of their workers.
In one instance, the management came forward to pay double the amount to Inspector Raj instead of paying a small amount to the worker. So, the mentality of the employer changes gradually towards the welfare of his workers, and there is not much importance placed on the inspectorate.
The central government's move is welcomed by all unanimously.
From India, Nellore
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In one instance, the management came forward to pay double the amount to Inspector Raj instead of paying a small amount to the worker. So, the mentality of the employer changes gradually towards the welfare of his workers, and there is not much importance placed on the inspectorate.
The central government's move is welcomed by all unanimously.
From India, Nellore
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Sirs,
1. Though the abolition of Inspector Raj is a welcome step, it is well known that compliance with labor laws in India is very poor. If there are restrictions for the inspecting authorities, as mentioned in respective labor laws, to visit the factories/units for inspections/verification of compliance, there will be hardly any restrictions on the employers who tend to violate the provisions of such labor laws by any means.
2. In this CiteHR, we have seen a number of complaints regarding issues such as non-payment of agreed wages, non-payment of leaves as due, non-payment of maternity and compensation benefits by the employers. We have also seen complaints regarding non-deposit of dues under EPF, ESI, and in respect of other statutory dues. Who will care for such labor legislations?
3. In the USA, a senior Indian officer posted in a foreign office, as I have read in newspapers, was fined sometime back for non-payment of minimum wages to a domestic help. India is not the USA concerning compliance with labor laws and human dignity. Despite the passage of many years, India has not been able to completely abolish child labor.
4. Perhaps seniors and experts, who have vast experience in the field of labor legislation and compliance, will also offer their expert and valuable views on the matter.
From India, Noida
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1. Though the abolition of Inspector Raj is a welcome step, it is well known that compliance with labor laws in India is very poor. If there are restrictions for the inspecting authorities, as mentioned in respective labor laws, to visit the factories/units for inspections/verification of compliance, there will be hardly any restrictions on the employers who tend to violate the provisions of such labor laws by any means.
2. In this CiteHR, we have seen a number of complaints regarding issues such as non-payment of agreed wages, non-payment of leaves as due, non-payment of maternity and compensation benefits by the employers. We have also seen complaints regarding non-deposit of dues under EPF, ESI, and in respect of other statutory dues. Who will care for such labor legislations?
3. In the USA, a senior Indian officer posted in a foreign office, as I have read in newspapers, was fined sometime back for non-payment of minimum wages to a domestic help. India is not the USA concerning compliance with labor laws and human dignity. Despite the passage of many years, India has not been able to completely abolish child labor.
4. Perhaps seniors and experts, who have vast experience in the field of labor legislation and compliance, will also offer their expert and valuable views on the matter.
From India, Noida
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