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Amendments in labour laws 2010

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Amendments in labour laws 2010

  1. 1. Major amendments in labour laws 2010:Gratuity,Employee compensation, ESI legalupdatesEmployees definition under Gratuity Act amended to included all types of worksirrespective of salary limitsThe Payment of Gratuity Act, 1972 definition of the term “employee” under Section 2got widened. It is no more the old definition of persons employed in administrative ormanagerial capacity.The new definition is as follows,The Payment of Gratuity Act, 1972 definition of the term “employee” under Section 2got widened. It is no more the old definition of persons employed in administrative ormanagerial capacity.The new definition is as follows,Employees means any persons [NOT being an Apprentice] employed for wages in anykind of work (manual or otherwise) or in connection with work of factory, mine,plantation, oilfield, railway company, port or other establishment.So, even teachers are eligible for gratuity now overriding the famous AhmedabadPrivate Primary Teachers Association case.Employees means any persons [NOT being an Apprentice] employed for wages in anykind of work (manual or otherwise) or in connection with work of factory, mine,plantation, oilfield, railway company, port or other establishment.Details in Employees definition under Gratuity Act amended to included all types ofworks irrespective of salary limits ~ See Yes -> Yes, ACSGratuity Amendment Act 2010 is notified in Official Gazette with Rs.10 lakhs as limitreplacing Rs.3,50,000The Payment of Gratuity (Amendment) Act, 2010 is notified in Official Gazette on 18thMay 2010, amending the Payment of Gratuity Act, 1972 with revision in maximumceiling from Rs. 3.5 lac to Rs. 10 lakhs. Whereas the date of effect of the revised ceilingmay be decided by the Central Government through Official Gazette as per GratuityAmendment Act 2010 is notified in Official Gazette with Rs.10 lakhs as limit replacingRs.3,50,000 ~ See Yes -> Yes, ACS
  2. 2. he Payment of Gratuity (Amendment) Act, 2010 is notified in Official Gazette on 18thMay 2010, amending the Payment of Gratuity Act, 1972 with revision in maximumceiling from Rs. 3.5 lac to Rs. 10 lakhs. Whereas the date of effect of the revised ceilingmay be decided by the Central Government through Official Gazette as per THEPAYMENT OF GRATUITY (AMENDMENT) ACT 2010Notification in Effective Date for Revision of Gratuity Amendment Act to Rs. 10 lakhs:Notification in Official Gazette as on 24th May 2010Workmens Compensation Act, 1923 becomes Employees with enhanced compensationlimits, full medical expenses reimbursement, case disposal within 3 months, etc..& alsoapplicable to casual & clericalsWorkmen’s Compensation Act is now Employees Compensation Act, 1923 and thedefinition of employee includes clerical employees & casual employees also. Further,the minimum compensation limits on no-fault basis are increased to Rs.1,20,000 &1,40,000 (erstwhile limits being Rs. 80,000 & 90,000).under the maximum compensation limit, the monthly wage limit of Rs.4,000/ is removed.hence, the maximum compensation can go UPTO 50% of Total Monthly Wages now,irrespective of limits.Funeral expenses limit extended to Rs.5000 (from Rs.2,500)The employee shall be reimbursed the actual (full) medical expenditure incurred by himfor treatment of injuries caused during the course of employment.Time limit for disposal of cases relating to compensation introduced- The Commissionershall dispose of the matter relating to compensation within 3 months of reference.Details in Workmens Compensation Act, 1923 becomes Employees with enhancedcompensation limits, full medical expenses reimbursement, case disposal within 3months, etc..& also applicable to casual & clericals ~ See Yes -> Yes, ACSWorkmen’s Compensation Act is now Employees Compensation Act, 1923 and thedefinition of employee includes clerical employees & casual employees also. Further, • the minimum compensation limits on no-fault basis are increased to Rs.1,20,000 & 1,40,000 (erstwhile limits being Rs. 80,000 & 90,000). • under the maximum compensation limit, the monthly wage limit of Rs.4,000/ is removed. hence, the maximum compensation can go UPTO 50% of Total Monthly Wages now, irrespective of limits [now a new ceiling of Rs.8000/- is introduced]. • Funeral expenses limit extended to Rs.5000 (from Rs.2,500) • The employee shall be reimbursed the actual (full) medical expenditure incurred by him for treatment of injuries caused during the course of employment. • Time limit for disposal of cases relating to compensation introduced- The
  3. 3. Commissioner shall dispose of the matter relating to compensation within 3 months of reference.Old definition: "workman" means any person (other than a person whose employment isof a casual nature and who is employed otherwise than for the purposes of the employerstrade or business) who is….New definition: Section 2“(dd) “employee” means a person, who is—(i) a railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24of 1989), not permanently employed in any administrative district or sub-divisional officeof a railway and not employed in any such capacity as is specified in Schedule II; or(ii) (a) a master, seaman or other members of the crew of a ship,(b) a captain or other member of the crew of an aircraft,(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity inconnection with a motor vehicle.(d) a person recruited for work abroad by a company,and who is employed outside India in any such capacity as is specified in Schedule II andthe ship, aircraft or motor vehicle, or company, as the case may be, is registered in India;or(iii) employed in any such capacity as is specified in Schedule II, whether the contract ofemployment was made before or after the passing of this Act and whether such contractis expressed or implied, oral or in writing; but does not include any person working in thecapacity of a member of the Armed Forces of the Union; and any reference to anyemployee who has been” injured shall, where the employee is dead, include a reference tohis dependants or any of them;’;Revised ESI limit Rs.15000 (not Rs.10000) for employees/workers w.e.f 1st May 2010 -as amended by the Act [extended]Ministry of Labour & Employment vide G.S.R. 394(E), dated 20th April, 2010 has madeEmployees State Insurance Act, 1948 read with ESI (Central) (Amendment) Rules, 2010applicable to employees whose wages does not exceed Rs. 15,000/- (Fifteen ThousandOnly). Details in Revised ESI limit Rs.15000 (not Rs.10000) for employees/workersw.e.f 1st May 2010 - as amended by the Act [extended] ~ See Yes -> Yes, ACS
  4. 4. Labour laws amendment bill to exempt unit upto 40 workersMonday, September 20th, 2010| The Union Cabinet today approved withdrawal ofLabour Laws (Exemption from Furnishing Returns and Maintaining Registers by CertainEstablishments) Amendment and Miscellaneous Provisions Bill, 2005 from Rajya Sabha,and introduction a new Bill, namely, Labour Laws (Exemption from Furnishing Returnsand Maintaining Registers by Certain Establishments) Amendment Bill, 2010 (Appendix-III) in the Rajya Sabha in the ensuing Session of Parliament after making of changes ofdrafting as consequential nature, if any, in consultation with the Legislative Department.The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers byCertain Establishments) Act, 1988 presently provides for exemption by way of allowingvery small establishment (employing up to 9 workers) to maintain only one register andsubmit one return and small establishments (employing 10 to 19 workers) to maintainthree registers and submit one return.The passage of the Amendment Bill will benefit establishments employing up to 40workers in maintaining registers and submitting returns electronically under 16 LabourLaws.The main features of the amendments are:,,X The coverage in terms of number of Acts will be increased from 9 in the Principal Actto 16.,,X The existing method of defining establishments as very small and small in thePrincipal Act would continue. The dispensation enjoyed by the very smallestablishments by way of maintaining only one register and submitting one return willalso continue. However, the small establishments would cover those establishmentsemploying between I0 to 40 workers as against 19 in the Principal Act. They would berequired to maintain only two registers as against three at present and submit onereturn. ,,X Registers/records can be maintained in computer, floppy, diskette or on otherelectronic media and return submitted through e-mail.The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers byCertain Establishments) Amendment and Miscellaneous Provisions Bill, 2005 wasintroduced in the Rajya Sabha to expand the coverage of the Act. The ParliamentaryStanding Committee on Labour advised that the provisions of the bill be discussed withthe employers and employees organizations and amendments redrafted on the basis ofconsensus reached.As the amendments proposed in the Labour Laws (Exemption from Furnishing Returnsand Maintaining Registers by Certain Establishments) Amendment and MiscellaneousProvisions Bill, 2005 have the effect to substantially delete a number of clauses andwould require negative voting as per laid down procedure , it is now proposed towithdraw this Bill and introduce a new simple Bill relating only to changes which arerequired.
  5. 5. Recent Amendments in Labour Laws:Promoting Equity and WelfareThe Payment of Wages Act, 1936 amended to enhance the wage ceiling for itsapplicability. It is presently fixed at Rs. 10,000/- per month.The Payment of Bonus Act, 1965 amended to enhance the eligibility limit from Rs.
  6. 6. 3,500/- per month to Rs. 10,000/- and calculation ceiling from Rs. 2,500 to Rs. 3,500/-per month while making employees employed through contractors on building operationseligible for payment of bonus under the Act.The Apprentices Act, 1961 amended, inter alia, to provide for reservation for otherBackward Classes.The Maternity Benefit Act, 1961 amended to enhance the medical bonus from Rs. 250/-to Rs. 2,500/-and also empowering the Central Government to increase it from time totime before every three years, by way of notification in the Official Gazette, subject to amaximum of Rs. 20,000/-.The Employees State Insurance Act, 1948 amended to improve the quality of delivery ofbenefits under the scheme and also to enable ESI infrastructure to be used to providehealth care to workers of the unorganised sector.The Payment of Gratuity Act, 1972 amended for raising the ceiling of Gratuity foremployees in the private sector to Rs. 10 lakh from Rs. 3.5 lakh.The Plantations Labour Act, 1951 amended to provide safety and occupational healthcare to plantations workers.

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