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GoM nod for labour reforms

The group of ministers GoM on labour reforms has reached a consensus on most contentious issues pertaining to the amendment to the Contrac...

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The group of ministers GoM on labour reforms has reached a consensus on most contentious issues pertaining to the amendment to the Contract Labour Regulation 038; Abolition Act, 1970.

A draft on these issues will be prepared by the labour ministry within a week. The GoM met here on Wednesday under Planning Commission deputy chairman K. C. Pant. The GoM had agreed to replace 8216;appropriate government8217; with 8216;establishments of Central government8217;, said official sources.

This means that semi-government bodies such as the Central public sector undertakings and autonomous organisations will be included in the definition, thus offering them flexibility in employing people. Another important provision of the amendment pertains to the grant of exemptions. The amendment also proposes to redefine 8216;workman8217; as one who draws Rs 6,500 per month, instead of Rs 500 per month, which is in the present legislation.

Further, principal employers would be able to use contract labour in 13 areas which include cleaning, gardening, transport service, courier services, construction, maintenance and export-oriented activities. Contract labourers will benefit monetarily as there is a provision for doubling remuneration for overtime work. In case of retrenchment, the GoM has agreed to provide a minimum of 15 days of compensation for every year of service. A final decision may be taken by the Cabinet.

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