Labor reforms are aimed at protecting workers and improving working conditions. The reforms led to banning child labor, providing health benefits and job security. India has a large informal labor market that lacks protections. Recent labor reforms seek to formalize the labor market through measures like portable universal account numbers for provident funds, apprenticeship programs, online compliance portals, and restricting arbitrary inspections. The goal is to make hiring and firing more flexible while still providing worker benefits to promote growth and employment.
This slide contains:
Incidence of Tax, its shift-ability, effect of residental status of assesse on taxability of income, effect on tax in different demand situations.
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
This slide contains:
Incidence of Tax, its shift-ability, effect of residental status of assesse on taxability of income, effect on tax in different demand situations.
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
This power point presentation will describe about the Concept Of Employment , Kinds Of Employment , Causes of Unemployment In India, Steps to reduce unemployment and Government Policies measures to reduce unemployment
it is a full information for the students according to thrir examinations point of view about monetary policy and objectives,nature, instruments of monitary policy
In this presentation, we will understand concept theories and types of wages, compensations and earnings.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Expert Series webinar presentation talks about the latest statutory changes in employment laws.
To know the statutory compliance for payroll, refer the link: https://www.greythr.com/complete-guide-statutory/
This power point presentation will describe about the Concept Of Employment , Kinds Of Employment , Causes of Unemployment In India, Steps to reduce unemployment and Government Policies measures to reduce unemployment
it is a full information for the students according to thrir examinations point of view about monetary policy and objectives,nature, instruments of monitary policy
In this presentation, we will understand concept theories and types of wages, compensations and earnings.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Expert Series webinar presentation talks about the latest statutory changes in employment laws.
To know the statutory compliance for payroll, refer the link: https://www.greythr.com/complete-guide-statutory/
The lower place India has as a destination for business investments in India, necessitated overhaul of the existing systems. Make in India campaign, also warranted reforms to make industry structures flexible and employees more productive. While industry associations demand removal of restriction on hiring and firing, reduction of pressures on compensation, bonus and social security, and continuity in operations without strike, union leaders are demanding protection to contract labour, continuation of social security benefits and payment of bonus and freedom to oppose erring employers. Besides central government, state governments like Rajasthan and Maharashtra have announced a slew of reforms in relation to Factories act, Contract Labour act and Industrial disputes act. The approach of the governments is termed by political parties and labour unions anti-labour. There is a demand to involve stakeholders in the process of reforms.
CII is very enthused by the Government’s plan in taking up Labour Law Reforms as one of the key focus areas as part of its growth agenda. We believe that the speed with which the new Government has initiated reform process in the labour law space will have a rippling effect on the twin objective of employability and job creation.
CII is a strong votary of key labour law reforms. CII believes that only a flexible, competitive and efficient labour law can catalyze investment, growth and employment. It is important that apart from reforms in key sectors a healthy business climate is created. The new government has already initiated these steps very aggressively and we can safely say that these processes will generate its impact very soon.
The September issue of Policy Watch takes an in-depth look at the Labour Law Reforms and has outlined some specific recommendations, which will have a big impact on the economy especially the manufacturing sector and will help in realizing the Prime Minister’s vision of “Make-in-India”.
2. Introduction
Labor Reforms are made to protect the common interest of
workers. For those in the industrial sector, organized labor
unions fight for better wages, reasonable hours and safer
working conditions. The labor reforms led efforts to stop
child labor, provide health benefits, job security and improve
the living conditions. It not only benefit the labors but also
contribute in the development of economy.
Who is a labor?
Is a person who provides services for wages as distinguished
from those rendered by entrepreneurs for profits.
3. Present situation
An estimated 90 per cent of India’s labor market is
informal.
Why does this matter?
Inefficient labor laws constrain firm development and
economic growth; employers rely on the informal
economy because the costs of formalization are too
high; meanwhile workers in the informal economy are
excluded from basic protections.
4. Need for labor reforms
• Under constitution of India labor is subject of
concurrent list where both central and state
government are competent to enact legislation
• India has emerged as out sourcing hub in the
present day
• India has 94% of workforce in unorganized sector
with second highest workforce of 487 million
next to china
5. Impact of labor reform implementation
Labor reforms if not implemented soon It would take a hit on India
as an investment destination. It will lead to great economic loss.
And the make in India campaign may suffer.
Strikes and lockdown has been reduced
6. LABOR REFORMS 2104 - 15
• PM Modi had unveiled the most awaited labor
reforms emphasising that ease of business is
possible when “MAKE IN INDIA” is successful
thereby making India a manufacturing hub.
• “Shramev Jayate” should have equal power as
“Satyamev Jayate” so as to develop the
country.
7. Universal Account Number (UAN)
•The UAN will allow collation of accounts and viewing of
updated PF accounts.
•The UAN would be portable throughout the working
careers of members, this scheme would enable 41.7
million employees to make their Provident Fund account
portable, hassle-free and universally accessible.
•Companies does not have to maintain separate PF
accounts for each labor.
8. Apprentice Protsahan Yojana
• Government to reimburse 50% of the stipend paid
to apprentice during first 2 years of training .
• Setting up of central institute for vocational
training(13 jan 2015)
• This will improve the quality of labour market in
India giving companies value for money.
• Under this scheme, Industrial Training Institutes
have total of 34 lakh seats for students.
• This will increase the morale and dignity of labor
and remove inferiority amongst them.
9. Shram Suvidha Portal
• Allots Labour Identification number to nearly 6 lakh firms.
• Allows e-filing of compliance reports.
• Unique account numbers for members of the
EPFO(Employee PF org.),ESI(Employee’s state insurance).
• company can now register online at the Shram Suvidha
portal and file a self-certified single compliance report for
16 Central labour laws.
• Sharply streamlining compliance process.
• Elimination of bureaucracy red-taping in turn saving time.
• Reducing the Entry barrier for new companies.
10. RANDOM INSPECTION SCHEME
• Elaborating on steps to end the inspector raj -- harassment by officials, Modi said a
transparent labor inspection scheme is being developed to check arbitrariness.
• While so far the units for inspection were selected locally without any objective
criteria.
• A computerized list of inspections will be generated randomly on predetermined
objective criteria and complaints-based inspection will also be determined
centrally based on data and evidence. There will also be provision of Emergency
List for inspection of serious cases.
• Now computer draw will decide which inspector (labour) will go for inspection to
which factory and he will have to upload his report online in 72 hours.
• These facilities are what is called as minimum government, maximum governance
• It will lead to reduction of corruption which is most important if make in India
campaign successful
11. Hire and Fire schemes
• Regardless of the size of the company all workers must be on the
master roll of the company i.e. threshold of duration (240days) and
size(100 workers) has been removed.
• Workers counsel should be formed in every enter price regardless of
size. With worker representative on board elected by the people with
equal power as other members.
• The limit for intrinsic informal worker hiring is reduced to 5 %
• If the worker is sacked then he will have to be given benefits such as
DA , PF, severance pay i.e. 45days salary for every year of work.
• Since all workers are protected hence will lead to economic growth.
• Will lead to right sizing of company.
• For seasonal industries (textile )can hire workers for minimum 180
days if goes beyond this have to hire for the whole year.
• Both industrial and trade unions have welcomed this step.
12. Child labor
• Under previous laws, child labor is not a punishable offence in some
"non-hazardous" sectors such as farming.
• It was argued that there should not be any discrimination on working
in hazardous or non-hazardous industry in terms of the ban.
• Child Labor Act to bring it in tune with the Right To Education (RTE)
Act, which makes education compulsory for all children up to the age
of 14.
• Employing a child under 14 for any work -- hazardous or non-
hazardous -- will be an offence punishable with imprisonment up to
two years or a fine up to Rs 50,000 or both, an increase from the
current one-year jail or Rs 20,000 punishment. Repeat offenders can
be imprisoned for up to three years.
13. The impacts of new labour reforms
• The above reforms will accelerate “MAKE IN INDIA”
campaign.
• Encourage the entrepreneurs.
• Will encourage investment from India and abroad .
• Will reduce unemployment.
• Will eliminate leakages from economy.
• Will increase income of govt.(which can be used to reduce
deficit)
• Increase in skilled labour.
• Will contribute to growth of GDP and decrease in Inflation
in country.
14. Conclusion
• The above labour reforms will improve skilled
labour market increasing the employment
simultaneously increasing quality of production
meeting the global standards and will in turn
increasing the prosperity of country and make
India a attractive destination to investors.