New Delhi, Jul 31 (KNN) The Union Cabinet has cleared amendments to critical labour laws which will enable, when passed by Parliament, doubling of overtime limit , exemption to firms employing up to 40 workers from compliance of labour regulations  besides allowing more trades to be included under the Apprenticeship Act. 

The Ministry of Labour and Employment had proposed amendments to the Apprenticeship Act of 1961, the Factories Act of 1948 and the Labour Laws (Exemption from furnishing returns and maintaining registers by certain establishments) Act, 1988.
 
The proposed changes to the Factories Act include – safety of workers to be improved; limit of overtime to be doubled; increasing the penalty for violation of the Act; relaxing the norms for women to work in some industry segments at night; and reducing the number of days an employee needs to work before becoming eligible for benefits like leave with pay.

The key changes proposed in the Apprenticeship Act include – do away with the clause that mandates imprisonment of company directors that fail to implement the Apprenticeship Act of 1961; not mandating employers to absorb at least half of its apprentices in regular jobs; addition of 500 new trades and vocations under the scheme; including skills for service sectors like IT-enabled services.

With regard to the amendments to Labour Laws Act, 1988, the ministry has proposed that companies with 10-40 employees will now be exempt from provisions under labour laws that mandate them to furnish and file returns on various aspects. The current threshold is up to 19 employees. 

According to a media report quoting a labour ministry official, “The salary segment too has been liberalized. In the first year, an apprentice will get 70 per cent of what a semi-skilled worker gets, in the second year 80 per cent and in the third year 90 per cent. For those employed in small-scale industries, the government will pay 50 per cent of their salary and the factory management the remainder.”

Minister of state for labour, Vishnu Deo Sai informed Parliament yesterday that the government was considering changes to the 66-year-old Factories Act to make it “more compatible with the requirement of the present scenario in the industrial sector”.

Sai also said that the government was making provisions for enhancing the safety of workers and for better amenities on factory premises.

In the budget speech earlier this month, Finance minister Arun Jaitley had hinted an amendment of the Apprenticeship Act. (KNN/SD)