Employers already feel the pinch in health insurance costs
Changes in labour law sought
Coimbatore: Industrial bodies in Coimbatore have urged the Labour and Employment Ministry to remove a section in the proposed labour law for micro, small and medium enterprises (MSME) that empowers factory inspectors to issue warrants against MSMEs even for petty offences.
The draft bill, Small Factories (Regulation of Employment and Conditions of Services) Bill 2014 has been finalised after discussions by the working group constituted by the ministry.
In a letter shot off by the Indian Chamber of Commerce and Industry (ICCI) on Friday to Narendra Singh Tomar, Union Minister for Labour and Employment, the ICCI pointed out that inspectors are empowered to issue warrant under section 94 of the criminal procedure code even for petty offenses.
“The intention of the bill should only be to push the growth of small industries and they should not be penalised under such criminal procedure code. Also the employer is made responsible to open the bank account with zerobalance to the employees, which should be amended and this responsibility should be given to the employees,” D Nandakumar, president of ICCI.
As per the existing Factories Act no written permission is needed for employing trainees, who subsequently become workers in the age of 16 and 19. “Hence this clause should be suitably amended. Also employment of women in night shift should be by a self-certification by the factories concerned,” he said.
There is a steep hike in health insurance under the new Act. The employers are already feeling the cost of health insurance is high and hence it should be retained at the older rates.
Besides this, the present Factories Act requires maintenance of creche in an industry where 30 or more women workers are employed. Reduction from 30 to 20 will increase the responsibilities of small industries in creating a creche, so the employees should be allowed to continue with the older provision itself.
( Source : dc correspondent )
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