Labour Law Reforms
Sanjeev Goyal
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DWARKA FORUM Dwarka Ki Awaaz (Regn No. S-63070) (A Welfare Association of Residents & RWA's / CGHS Representatives of Dwarka Sub-City)
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Regd. Office: 720, Pocket-1, Sector-14, Dwarka, New Delhi - 110078 |
Phone No. 011-20514195 E-mail: dwark...@gmail.com | |
श्री नरेंद्र मोदी, प्रधानमंत्री,
Nirman Bhawan,
New Delhi-110011. pm...@pmo.nic.in
Sir,
Sub: Labour Law reforms.
Concerned Ministry: (i) Labour & Employment.
Dear Sir,
Much is already on the cards for labour laws reform, however still people perceive it cumbersome and want to avoid it to the extent possible. This is primarily because of legacy of Inspector Raj. Now when the inspector raj has been curbed to a greater extent still there is a lot of scope to bring ease in compliance. We would focus on PF & ESI acts which perhaps have most wide coverage. At present there are 2 different administrative bodies entrusted with the management of act. However, there is difference in all aspects of these 2 acts. Be it definition of employees, number of employees required for coverage under act with further differentiation whether power is used? Definition of salary - everything is different. It is pure co-incidence that last revision of salary eligibility for PF deduction, in last September, has been brought up to Rs.15,000/- which is also the threshold limit for ESI. But what counts in this Rs.15,000/- is different under 2 acts. Further, it is also understood that now ESI limit is proposed to be increased to Rs.25000/-. So the difference would stay, and these differences have always led to confusion & creating mis-understanding about these acts. It is suggested that now with technological advancement compliance may be further eased by following ways:
(i) The periodic compliance return under these 2 acts be combined into one,
(ii) Single challan to serve the job of monthly deposit under both acts,
(iii) ESI to use Unique Account Number granted to employees by PF department,
(iv) Definition of salary, employee be simplified & brought at par,
(v) The strength of employees required for coverage be made same.
(vi) Electronic form of records/accounts with employer be accepted and paper form not insisted and
(vii) Combine the enforcement field staff under 2 acts - there is absolutely no necessity of maintaining 2 distinct field staff teams (when state sales tax department can act on behalf of central Govt., one filed inspector is sufficient to carry out duty for both the central acts.) It can actually lead to huge savings.
Above, if done would greatly help in removing the mist spread around enforcement of these 2 social security enactments.
--PTO--
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(2) In PF employees are having option to be a member of scheme even if their salary is more than the maximum permissible under Act i.e. Rs.15,000/-. Likewise, Govt. may also consider allowing employees drawing salary exceeding the maximum permissible limit under ESI to subscribe the scheme. This would not only enhance the resources with ESIC but will also improve the utilization quotient of ESI hospital thereby reducing some load on other medical infrastructure.
(3) In addition to above, it is also felt that India as a country has much more work force working in un-organized sector than organized sector. As a result the benefits of PF & ESI acts are not reaching to a large portion of work force forcing them to lead their life in economic uncertainty. Accordingly, it is suggested that easy to follow schemes be launched for compliance on voluntary basis. For example all, the employer with less than 10 employees may also be authorized to open PF accounts of its employees and/or contribute for ESI. The employer should be permitted to choose how much it wants to contribute, and there should be no compulsion for employee to contribute. The compliance should be optional with no authority with departmental inspectors to visit the premises. It should be purely on the basis of understanding between employee & employer. In this way it is possible that benefits under acts may be spread to few crore more employees. The motto should be simplicity & voluntary compliance. The formalities should be as easy as withdrawing money from ATM. By making compliance easy & assuring industry that there would never be any harassment by department a great boost can be thrust upon to spread the implementation of these 2 key social security schemes.
Thanks. Please acknowledge.
Yours faithfully,
(S K Goyal)
D-103 Shivam Apts, Plot-14,
Sec-12, Dwarka,
New Dwelhi-110078. cwa...@gmail.com
Copy to: (i) Secretary M/o Labour & employment secy-...@nic.in
Note: Please do mention reference no. No. SKG/PMO/025 in all correspondence.