Memorandum seeks amendment of sections in labour law for MSME

The local chapter of Indian Chamber of Commerce and Industry today urged the union labour ministry to bring in a Comprehensive Labour Law for MSME either by removing or amending some sections in the proposed "Small factories (regulation of Employment and Conditions of Services) Bill, 2014",
In a memorandum submitted to Union Labour and employment Minister, Narendra Singh Thomar, the Chamber president, R Nandakumar said that in section for "Powers of Inspectors", failure to provide informations as required by the Inspectors was an offence under section 175 of the Act which was for Criminal Proceedings. Further, Inspectors were empowered to issue warrant under section 94 of the CrPC even for petty offenses, he said.

The intention of the Bill was growth of small industries, the highest employers in India, which will not have the required infrastructure and personnel to follow the rules and regulations with the strict procedures and formalities. They should not be penalised under Criminal Procedure Code, he said and requested to remove the Section.
He also sought to amend the view that employer was responsible to open a bank account with zero balance to the employees and this should be given to the employees.
As per the existing Factories Act no written permission was needed for employing trainees,the chamber wanted to amend this clause also.

The employment to women in the night shift should be by a self-certification by the factories concerned, the memorandum said.

The memorandum urged the minister that total leave wages paid by the employers be restricted to one day for every 20 days worked, subject to employees working at least 240 days per year.
The procedure of payment of wages on monthly or weekly basis without adding Sundays or weekly holidays has to be continued, it said.
Nandakumar also sought to retain the older rates for health insurance as employers were already feeling the high cost of insurance.