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Activities Round Up

Date : 02 Feb to 02 Feb 2013
Place : New Delhi
Organised by : FISME

FISME held discussion on Reforms in Labour Laws


 FISME held discussion on Reforms in Labour Laws

The mismatch between the cost of keeping decrepit and inflexible Lobour Laws on the one hand and the needs of the industry to withstand continuously changing globally competitive business environment at the other, is becoming a serious handicap for Indian Industry, particularly MSMEs.

In order to provide inputs to the National Manufacturing Competitiveness Council (NMCC) on Labour Laws that require reforms from the perspective of MSMEs, FISME held a discussion on the issue at FISME secretariat on Feb 2, 2013 in New Delhi.

Mrs Uma Reddy (Member NMCC and MD, Hitech Magnetics & Electronics Pvt. ltd, Bangalore) and Advocate Mukesh Saxena (Labour Law Expert) were special invitees. The Meeting was presided over by Mr Dinesh Singhal, former President of FISME.     

While FISME has begun the process of collating feedback from constituent associations to develop Draft Policy Paper, some of the initial thoughts emerged during the discussions were:

i.         Need to develop one Master record format to do away with multiple record keeping

ii.        Urgent need to set up a committee to review the Factories Act  and suggest substantial amendments

iii.       Development of Social security mechanism for workers using Aadhar cards wherein responsibility of the entrepreneur will be limited to depositing a specified sum per worker employed and the proposed institution will be responsible for keeping records and providing medical or retirement benefits.  The enterprise would keep two primary records: attendance and payment of wages.

iv.       Need for adoption of best practices already in vogue in few states with regards to inspection and prosecution

v.        Need to have a comparative analysis of various Labour Laws in different states

vi.       Need  to replace minimum wages boards with a mechanism based on per capita income of the place

vii.      Need for special provisions for start-ups for initial period of 5 years