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Labour reforms will bring ‘one licence, one registration, one return’ regime, boost ease of doing business | India News


NEW DELHI: The brand new Codes on Occupational Security, Well being and Working Situations, Social Safety, and Industrial Relations handed by Lok Sabha on Tuesday will lower down the net of paperwork and swap to a “One Licence, One Registration, One Return” mechanism to ramp up ease of doing enterprise in India.
The labour reforms, which Minister of State for Labour Santosh Gangwar described as “sport altering reforms” in Lok Sabha on Tuesday, will convey down the variety of registrations required underneath current labour legal guidelines from eight to 1, licenses from 4 to at least one and the variety of returns filed underneath the labour legal guidelines additionally down from eight to at least one.
The transfer, which labour ministry officers mentioned will put India among the many High 20 international locations on the Ease of Doing Enterprise, additionally entails provisions such because the establishing of a Social Security Fund for unorganised, gig and platform employees, a proper grievance redressal mechanism, and the top of what’s known as “Inspector Raj”. Below the brand new labour codes, inspections of enterprise institutions might be performed by way of a “randomised, web-driven system”, a step in the direction of faceless checks like within the case of Earnings Tax assessments, which is able to imply that labour inspectors will conduct bodily checks solely upon being prompted by the web-driven system.
Key provisions of the brand new codes additionally embody extension of advantages corresponding to go away, social safety and gratuity to all individuals engaged underneath ‘fixed-term employment’ – which weren’t out there within the earlier legislation. Below the OSHWC Code, employees who maintain accidents whereas on the job, may even obtain 50% of the penalty imposed on the institution by Court docket, along with the compensation the employee is because of obtain.
Authorities officers mentioned whereas the Codes have widened the expanse of social safety advantages to cowl every kind of employees, to assist companies, the Codes have diminished the utmost jail time period potential underneath labour legal guidelines from the present 7 years to three years.
Below the brand new codes, the definition of working journalists has been expanded to incorporate digital and digital media, which was not coated underneath labour legal guidelines earlier. The codes additionally mandate issuance of appointment letters to employees, cost of wages by way of Direct Benefit Transfer (DBT) and an annual medical check-up, freed from value.
Acknowledging the shortage of complete knowledge on migrant employees, a difficulty that has put the federal government within the dock particularly after the coronavirus-induced lockdown, authorities officers mentioned the facility to enumerate migrant employees, and to map their expertise, has now been written into the codes. Since Labour is a concurrent topic, it will imply it is going to now be binding on states to collate the info and share it with the Union ministry.
Amid boycott from main opposition events, together with Congress, Lok Sabha handed the three labour code payments.

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