Regulate Labour Inspection on MSMEs Once a Year: PHD Chamber

PHD Chamber of Commerce and Industry has pitched for regulation of labour inspection on industry from multiple governmental departments once a year, especially in its MSMEs segment as also sought revision of basic definition of MSMEs in the evolving economic scenario of the country and its deepening engagements with the economies in developed and developing world.

In a memorandum submitted to the office of Development Commissioner of Micro, Small & Medium Enterprises here, on the issue of rationalization of inspections, the President of the Chamber Mr. Alok B. Shriram said that the labour inspection should be regulated in such a manner that it serves the purpose of guidance in compliance with the statutory provisions, instead of causing harassment. There should be only one annual inspection by all the inspectors namely labour, factory, ESI, EPF, welfare and statistical which be coordinated and jointly organized by different agencies and that too after reasonable prior notice so that the clerk and officer concerned is present there to make available the requisite records.

The PHD Chamber points out that India has a very heavy dose of labour legislation, their number being more than one hundred. Moreover, there is considerable over-lapping of several statutory provisions. A major drawback of the labour legislation is that it lacks uniformity as regards coverage not only of the establishments but also of the employed persons.

The President also said that the turnover limit for micro enterprises be pegged between Rs.1 crore to 25 crore whereas for small industries, it be raised between Rs.25 to Rs.100 crore.

The turnover limit for medium sized industry be lifted at the level of between Rs.100 to Rs.1000 crore. Mr. Shriram argued that industry has been advocating the need for revising the basic definition of MSMEs for quite some time as multiple factor including the increased competitiveness demand that the definition be revised.

The Chamber hopes that the government will make a provisioning for it in the forthcoming budget as the demand has been pending with the government for considerable time.

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