Govt approves simplified labour law

The Cabinet today cleared a simplified version of a labour Bill that will benefit small business establishments employing up to 40 workers in maintaining registers and submitting returns electronically.

According to the decision, the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment and Miscellaneous Provisions Bill, 2005, will be replaced with Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment Bill, 2010, in the coming session of Parliament.

In order to make it easier for very small establishments employing up to nine workers and small establishments employing between 10 and 19 workers, the government had earlier allowed them to maintain just one and three registers, respectively.

They were allowed to file one return each.

But now these organisations will be required to maintain two registers.

Registers/records can be maintained in computer, floppy, diskette or on other electronic media and return submitted through e-mail.

The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment and Miscellaneous Provisions Bill, 2005 was introduced in the Rajya Sabha to expand the coverage of the Act. Following discussions in the Standing Committee, procedures have been simplified and a new bill has been cleared by the Cabinet after permitting the labour ministry to withdraw the old one.

ESI coverage limit increased from 10,000 to 15,000 w.e.f 01-05-2010

The ESI Corporation has approved to enhance wage ceiling from Rs 10,000 per month to Rs15,000 per month for coverage of employees under the ESI Scheme in its 149th meeting held on Friday under the chairmanship of Union Minister of Labour and Employment Mallikarjun Kharge.

Union Minister of State for Labour and Employment Harish Rawat and the vice-chairman, ESIC, were also present in the meeting.

Keeping in view the increase in cost of living index and recommendations of the Parliamentary Standing Committee on Labour, the corporation increased the wage ceiling limit for coverage of the employees under the ESI Scheme.Notification

This will help the corporation to provide social security net to more and more employees of the organised sector.