An umbrella legislation to regulate small factories and exempt all such units with upto 40 workers from provisions of major labour laws is likely to be taken up by the Union Cabinet next week.
The proposed Small Factories (Regulation of Employment and Conditions of Services) Bill is still being vetted by the law ministry, which is likely to grant approval within this week, said a senior labour ministry official, adding that it will be taken up by the Cabinet next week,
“We were keen to list it for approval from the Union Cabinet this week but we are still awaiting clearance from the law ministry. It should come in in a day or two and we will list the Bill for next week,” said the official.
The Bill is now expected to be introduced in Parliament in its Monsoon session, missing the ongoing Budget session.
The Bill was drafted by the labour ministry in October last year and is expected to help micro, small and medium enterprises by reducing their compliance burden and promote ease of doing business for them.
The draft Bill has sought to provide each employer a labour identification number that would allow him to register online and submit a single compliance report for all 44 labour laws. Closing factories will also be easier under the Bill. It proposes that for shutting down such units the owner will have to notify the labour officers electronically within 15 days of closing up.