Labour and employment minister Santosh Gangwar on Wednesday said labour reform proposals will strike a balance between the interest of both the employers and the employees and will contribute to India’s self-reliance.
While proposals such as universalisation of minimum wages and social security coverage would benefit workers; the reduction of compliance burden by way of simplification of labour codes will ensure the ease of doing business.
“The labour ministry with an intention to simplify the labour codes has decided to eliminate multiple registration requirements. So now, instead of registrations under eight different acts, only one registration would be sufficient. Also, instead of three licenses under various laws, only one license would be enough,” the minister said at an Assocham event.
To lighten the burden of the business units, several permissions, licenses and approvals would be provided the ‘deemed approval’ facility. In addition, a simple and transparent dispute settlement system has also been established through the Industrial Relations code, he said.
“We believe that through these measures, while there would a marked improvement in the ease of living for the workforce, it would also encourage a lot of new businesses to flourish,” Gangwar added. Speaking about the fixed-term employment, he said that the government would ensure that they get all the facilities and benefits that a regular employee enjoys.
The minister said employees’ provident fund organisation (EPFO) has settled more than 52 lakh Covid-19 advance claims and disbursed Rs 13,300 crore to help out the formal sector workers.
In order to ameliorate the hardships faced by formal sector employees, the labour ministry provided the option of non-refundable advances to EPF members not exceeding the basic wages and dearness allowances for three months or up to 75% of the amount in the members’ EPF account, whichever is less.