In yet another push to labour reforms by the Narendra Modi Government, a Bill seeking to exempt lakhs of small establishments (482.7 lakh, according to the Central Statistical Office) from furnishing returns and maintaining registers was passed by Parliament on Friday. The Bill was earlier passed by Rajya Sabha.

 

The Bill seeks to change the original Act to increase the number of laws from nine to 16 under which small units are exempt from furnishing returns. The definition of ‘small’ establishments is also being changed to cover units employing between 10 and 40 workers, against 19 workers at present.

 

The Bill was approved by the Lok Sabha even as it was opposed by the Congress, Trinamool Congress, CPI (M) and Biju Janata Dal, who said lakhs of workers would lose labour law protection. An amendment moved by Saugata Roy of TMC was rejected.

Moving the Bill for consideration and passage, Minister of State for Labour and Employment, Bandaru Dattatreya, assured the House that his Government would do everything to protect the rights of the workers, while pursuing reforms to create more employment opportunities.

The seven Acts that have been added to the list include the Motor Transport Workers Act, 1961, the Payment of Bonus Act, 1965, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

Earlier, Roy accused the Government of introducing “anti-labour legislations in homeopathic doses”, adding that 80 per cent of the working class would be affected by it. While accepting that ‘inspector raj’ was a problem and had to be dealt with firmly, he said “misuse of law does not mean you do away with it”.

Sankar Prasad Datta (CPI-M) termed the Bill as “pro-corporate“, while K Suresh  and Mallikarjun Kharge (both former Labour Ministers) also opposed it saying inspectors existed in all departments and it was wrong to single out labour laws.  R K Jena of BJD said “any law without penal provision was defunct”.

Hukum Singh of the BJP supported said the new law saying it would help end

“inspector raj” that had resulted in “closure” of a large number of small units in the hinterland. “The Government should bring more amendments…. We need facilitators not regulators,” he added.