Amendment in the Labour Laws Act, 1988

- withdrawal of the Labour Laws Amendment and Miscellaneous Provisions Bill, 2005, and introduction of the new Bill approved

The Union Cabinet today approved withdrawal of Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amednment and Miscellaneous Provisions Bill, 2005 from Rajya Sabha, and introduction a new Bill, namely, Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment Bill, 2010 (Appendix-III) in the Rajya Sabha in the ensuing Session of Parliament aftermaking of changes of dafting as consequential nature, if any, in consultation with the Legislative Department.

The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988 presently provides for exemption by way of allowing 'very small' establishment (employing up to 9 workers) to maintain only one register and submit one return and 'small establishments' (employing 10 to 19 workers) to maintain three registers and submit one return.

The passage of the Amendment Bill will benefit establishments employing up to 40 workers in maintaining registers and submitting returns electronically under 16 Labour Laws.

The main features of the amendments are:

„X The coverage in terms of number of Acts will be increased from 9 in the Principal Act to 16.
„X The existing method of defining establishments as 'very small' and 'small' in the Principal Act would continue. The dispensation enjoyed by the 'very small' establishments by way of maintaining only one register and submitting one return will also continue. However, the 'small' establishments would cover those establishments employing between I0 to 40 workers as against 19 in the Principal Act. They would be required to maintain only two registers as against three at present and submit one return.
„X 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. The Parliamentary Standing Committee on Labour advised that the provisions of the bill be discussed with the employers' and employees' organizations and amendments redrafted on the basis of consensus reached.

As the amendments proposed in the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment and Miscellaneous Provisions Bill, 2005 have the effect to substantially delete a number of clauses and would require negative voting as per laid down procedure , it is now proposed to withdraw this Bill and introduce a new simple Bill relating only to changes which are required.


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