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Narendra Modi government to revive reform to encourage companies to hire more, Delhi

HR & Payroll
The Narendra Modi-led government is trying to revive a decade-old humble reform that will encourage employers to hire more workers without having to comply with the cumbersome labour law requirements. It is also planning to expand the basket of labour laws for which companies can use a unified compliance format from nine to 16, a move that will reduce reporting rigour, officials familiar with the matter said. The ministry of labour and employment has proposed that companies with 10-40 employees be exempt from provisions under various labour laws that mandate them to furnish and file returns on various aspects. The current threshold is up to 19 employees. According to the proposal, this will be done through amendment to the Labour Laws (Exemption from furnishing returns and maintaining registers by certain establishments) Act, 1988. The idea is to induce establishments to employ more number of persons and derive the benefits of the exemptions the Act provides. The ministry has invited comments from stakeholders within 30 days before it takes a call. The proposal was first mooted by the UPA-I government in 2005, but it was subsequently withdrawn after stiff opposition from the Left parties. The redrafted Bill, compiled after extensive stakeholder consultation, was introduced in Rajya Sabha again in 2011, but once again there was not much breakthrough, with the result that even the simplest of labour reforms could not be introduced. The original law provides for maintaining combined registers and submission of simplified rereturns for nine Scheduled Acts. If the proposed amendments are accepted, companies will also be able to comply with seven more laws in a common format. The proposed amendments will also allow small establishments to maintain two registers instead of three besides enabling companies to maintain records and registers in computer, floppy, diskette or on any other electronic media as well as file the same through email.
Source : E T
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