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LATEST NEWS UPDATES | 2010 saw a slew of measures on the labour front

2010 saw a slew of measures on the labour front

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published Published on Jan 2, 2011   modified Modified on Jan 2, 2011

Rolling out a slew of measures for the working class in 2010, the government effected key reforms in some labour acts while also raising the annual rate of returns on employee provident funds to 9.5 per cent.

The steps came as the government also unveiled the draft national policy on employment with suggestions of launching of a employment guarantee scheme in urban areas on the lines of NREGA.

It amended the Payment of Gratuity Act to enhance the ceiling on gratuity from Rs 3.5 lakh to Rs 10 lakh and cover teachers under the Act.

As part of other reform measures, the Workmen's Compensation Act, 1923 was also amended to increase the compensation limit and rechristening it as Employees' Compensation Act.

The much-awaited Industrial Disputes Act was amended during the year gone by, enabling direct access of workmen to labour courts, establishment of grievances redressal machinery and empowering labour courts or tribunal to execute the awards.

All these measures came as the Labour and Employment Ministry proposed to amend the Minimum Wages Act to make the minimum wages statutory and the Inter-State Migrant Workmen Act.

On New Year's eve, the wage boards for working journalists and non-journalists and other newspaper employees submitted their recommendations to the government for a 2.5 to 3 time hike in basic pay and fixing the retirement age at 65.

The recommendations have been proposed to be implemented from January 8, 2008. The recommendations would be examined by the ministry before they are tabled before the Union Cabinet for approval.

Besides, the Ministry also proposed to amend the Contract Labour (Regulation and Abolition) Act where agreements between employers and contractors will clearly indicate wages and contribution towards social security schemes and other benefits.

Prime Minister Manmohan Singh, while inaugurating the 43rd session of Indian Labour Conference felt there is a need to revisit some of them which have hurt the growth of employment.

"We have enacted several progressive labour laws since independence and some even before that. But it appears that not all these laws have had the intended good effects that we would like to see on the ground," he said.

Extending employment guarantee from 100 to 200 days, introducing similar scheme in urban areas and removing ban on recruitment in public sector were among a host of recommendations during the conference.

Some of the other recommendations included strict implementation of labour laws in case of lay-offs, retrenchment, job losses, closure etc. And devising a broad-based social security and unemployment insurance programme.

The year 2010 also brought good news for provident fund subscribers after the Government hiked the interest rate of EPF deposit from 8.5 to 9 per cent, making deposit in this scheme more attractive.

Banks across the country offer a maximum interest rate of 8.75 per cent on fixed deposit.

EPFO also embarked on a modernisation drive which could see settlement period of claims coming down to less than 30 days payments being made through electronic payments.

During the year, 12.96 jobs were generated in selected but high potential sectors as was reflected in the quarterly surveys carried out by Labour Bureau.

The first annual labour force survey by the Bureau also revealed that the current rate of employment stood at 9.4 per cent.

Plans are afoot to amend the Employment Exchange Act to change its nomenclature to 'employment guidance and promotion centre' to give primacy to employment promotion, vocation guidance and counselling.

In the central spheres, 356 instances of threatened strikes were reported, of which 349 cases were averted during 2009-10.

Officials in the ministry said all posts of presiding officers lying vacant in 22 central government industrial training-cum-labour courts were filled up.

Keeping in mind the well being of the workers, the government also ratified International Labour Organisation convention no 127, thereby putting restrictions on manual transport of load to not more than 50 kg.

The Employees State Insurance Corporation (ESIC) decided to enter the field of education and is planning to set up 29 institutes comprising medical colleges, nursing colleges and dental colleges.

Bangalore was the first city where ESIC launched its first post graduate institute of medical science and research. A dental college here was also established.

During the year, the Corporation, providing social security benefits and health services to employees, has spent Rs 2053.86 crore on medical and cash benefits of insured persons and their family members.


The Business Standard, 1 January, 2011, http://www.business-standard.com/india/news/2010-sawslewmeasuresthe-labour-front/120755/on


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