YEAR-END REVIEW 2010
The Ministry of Labour &
Employment has made serious efforts to implement various provisions mandated
relating to enhancement of the welfare and well-being of farmers, farm labour
and workers particularly those in the unorganized sector, ensuring the fullest
implementation of minimum wage laws for farm labour, striving for elimination
of child labour, examination of labour laws that create an Inspector Raj and
harmonization and streamlining of procedures.
Amendments have been carried out in 5 Acts namely the
Workmen’s Compensation Act, 1923, the Payment of Gratuity Act, 1972, the
Employees’ State Insurance Act, 1948, the Plantations Labour Act, 1951 and the
Industrial Disputes Act, 1947. Proposals
to amend 10 Acts are at various stages of consideration.
The ‘National Policy on Safety, Health and Environment
at Workplace’ and the ‘National Policy on HIV / AIDS and the World of Work’
have been announced. The ‘National Employment Policy’ is being formulated.
The ‘Report to the People on Employment’ has been placed
in the public domain.
27 States / Union Territories have taken initiatives to
implement the Rashtriya Swasthya Bima Yojana (RSBY). About 2.23 crore cards
have been issued till 15.12.2010.
The coverage under RSBY has been expanded to include
construction workers. Cabinet approval
has been obtained to cover street vendors also.
The National Floor Level Minimum Wage has been revised
from Rs.80/- to Rs.100/- per day w. e. f. 01.11.2009.
‘Pehchan Identity Card’ Scheme for Employees’ State
Insurance Corporation (ESIC) beneficiaries has been launched.
The wage ceiling for coverage of employees under the
Employees’ State Insurance Act, 1948 has been enhanced from Rs.10,000/- to Rs.15,000/- per month w.e.f. 01.05.2010.
The ‘Modernization Project’ is being implemented in the
Employees Provident Fund Organization (EPFO) with technical assistance of
National Informatics Centre (NIC).
Employment of children has been prohibited in two more
occupations, namely, ‘Circus’ and ‘Caring of Elephants’.
About 6.47 lakh children have been mainstreamed under
the National Child Labour Project (NCLP).
Vocational Training is being provided through a network
of 2,178 Industrial Training Institutes (ITIs) and 6,464 Industrial Training
Centres (ITCs) where about 1.19 million training seats are available.
Upgradation of 100 ITIs with domestic resources, 400
ITIs with World Bank assistance and 1,396 ITIs under PPP mode was undertaken.
‘Skill Development Initiative’ (SDI) Scheme for
training school drop-outs and existing workers especially in the informal
sector under Modular Employable Skills (MES) framework was implemented.
Kaushal Vikas Yojana to set up new 1,500 ITIs and 5,000 Skill Development
Centres, Skill Development Plan for Youth , supplementing infrastructure
deficiencies in ITIs in NE states and
Sikkim and modernization of all 969 Employment Exchanges in the country under
e-governance plan are being taken up.
ILO Convention No. 127 concerning Maximum Weight for
manual transport has been ratified.
Labour Bureau has conducted eight quarterly quick
employment surveys to assess the impact of economic slowdown on employment.
Labour Bureau has conducted the Annual Survey of
Employment & Un-employment for the reference period 2009-10.
details are given below:
The Workmen’s Compensation Act, 1923
has been amended to make it gender neutral. The Act will now be called ‘the
Employees’ Compensation Act, 1923’. Besides , the compensation under the
Act has been enhanced from Rs.80,000/- to Rs.1,20,000/- in case of
death, from Rs.90,000/-to Rs.1,40,000/- in case of disablement and from
Rs.2,500/- to Rs.5,000/- towards funeral
expenses. The employee shall be
reimbursed the actual medical expenditure incurred by him for treatment of
injuries caused during the course of employment without any ceiling. A new
Section 25A has been added for the Commissioner to dispose the matter relating
to compensation under this Act within a period of three months from the date of
reference. The wage ceiling limit for working out compensation has been
increased from Rs.4,000/- to Rs.8,000/- per month .
The Payment of Gratuity Act, 1972
has been amended first to cover teachers in educational institutions and again
to enhance the ceiling on gratuity from Rs.3.5 lakh to Rs.10 lakh.
The Employees’ State Insurance Act,
1948 has been amended to improve the quality of service under the scheme and
also to enable ESI infrastructure to be used to provide health care to workers
in the unorganized sector.
The Plantations Labour Act, 1951 has
been amended for providing safety and occupational health care to plantations
The Industrial Disputes Act, 1947
has been amended to amplify the term
‘appropriate government’ defined under section 2(a) of the Act, enhance the
wage ceiling from Rs.1,600/- to Rs.10,000/- per month to cover workmen working
in supervising capacity, provide direct access for the workman to the Labour
Court or Tribunal in case of disputes
arising out of Section 2(A) of the Act, expand the scope of qualifications of
Presiding Officers of Labour Courts or
Tribunals, establish Grievance Redressal Machinery and empowering the Labour
Court or Tribunal to execute the awards
The National Policy on Safety,
Health and Environment at Workplace and the National Policy on HIV / AIDS and
the World of Work have been announced.
Important Schemes For Unorganized Sector Workers:
A Health Insurance Scheme for the
poor titled ‘Rashtriya Swasthya Bima Yojana’ (RSBY) is being implemented from
01.04.2008. The scheme envisages provision for issuing a smart card to the
beneficiary. This card facilitates cashless transaction up to Rs.30,000/-. 27 States / Union Territories have initiated the
process to implement the scheme and 24 States / Union Territories have started
issuing cards. More than 2.18 crore
cards have been issued. So far as other target groups are concerned,
construction workers have been covered and Cabinet approval has been obtained
to cover street vendors also. Steps are being taken to extend the scheme to
cover railway porters and Mahatma Gandhi Rural Employment Guarantee Act
(MGREGA) beneficiaries who have worked for more than 15 days during the
preceding financial year etc. The National Social Security Fund has been set up
for unorganized sector workers with an initial corpus of Rs.1000 crore. This
Fund will support schemes for weavers, toddy-tappers, rickshaw pullers, beedi
workers etc. Welfare Schemes relating to group insurance, medical cover, scholarship,
pension, housing etc. for building and other construction workers, cine, beedi
and non-coal mine workers are in operation.
The National Floor Level Minimum
Wage has been revised from Rs.80/-per day to Rs.100/- per day w. e. f
01.11.2009. In the Central Sphere, minimum rates of wages were revised for
workers in the Employment of
‘agriculture’ , stone breaking and stone crushing’ , sweeping and
cleaning’ , watch and ward’, ‘loading and unloading’ , ‘construction’, and
‘non-coal mines’ w.e.f. 01.10.2010 in the range of Rs.146/- to Rs.310/- per day
for different categories of workers in different areas. The Central Government
has notified the Payment of Wages (Nomination) Rules, 2009 defining the
procedure for nomination and restricting the nomination by workers to his
family members. The Central Government has re-constituted two Advisory Boards
namely Minimum Wages Advisory Board (MWAB) vide notification in the Gazette of
India (Extra Ordinary) S.O. 1334 (E) dated 7th June, 2010 and Central Advisory
Board (CAB) vide notification in the Gazette of India (Extra Ordinary) S.O.
2064 (E) dated 23rd August, 2010 under Section 7 and 8 respectively of the
Minimum Wages Act, 1948. The first meeting of the MWAB and CAB was held on
23.09.2010 and 07.10.2010 respectively.
Social Security: Employees’ State Insurance Corporation
New geographical areas covered by
the ESI Scheme were 46 in 2008-09, 53 in 2009-10 and expected to be 60 in
2010-11. The number of insured persons was 1.43 crore, number of beneficiaries
5.55 crore and number of factories / establishments 4.6 lakh in 2009-10. The
functioning of the Employees’ State Insurance Corporation (ESIC) is being
improved through the use of information and communication technology under IT
based e-governance project ‘Panchdeep’. A ‘Pehchan Identity Card’ Scheme for
Employees’ State Insurance Corporation Beneficiaries has been launched. Every beneficiary will be issued two Smart
Cards – one for himself and another for the family. This would enable Insured
Persons (IPs) and their family members to avail benefit from anywhere any time,
even if they are living at separate locations. The wage ceiling for coverage of
employees under the ESI Act, 1948 has been enhanced from Rs.10,000/- to Rs.15,000/- per month w.e.f. 01.05.2010. ESIC has
decided to enter the field of Medical Education recently and 29 Institutions
would be set up including medical colleges, nursing colleges, dental colleges,
post graduate institutions and training schools etc. One Post Graduate
Institute of Medical Sciences & Research at Bangalore and one Dental
College at Rohini, Delhi have already been started. It
has been decided to modernize/upgrade/expand all ESI hospitals in a phased
manner. Accordingly, 118 major projects are underway. New Hospitals at Manesar (Haryana), Bhiwadi
(Rajasthan), Baddi (Himachal Pradesh), Tirunelveli (Tamil Nadu) and Peenya,
Bangalore (Karnataka) are going to be commissioned in near future. Sophisticated
equipments i.e. MRI & CT scan have been installed in ESIC Hospitals at
Bangalore, Mumbai and Delhi.
Social Security: Employees’ Provident Fund Organization
The ‘Modernization Project’ is being
implemented with technical assistance of National Informatics Centre
(NIC). This project is conceptualized in
two phases. The first phase that has
currently been implemented covers services that are rendered to members i.e.
claims settlement and issue of annual accounts slips.
The following benefits are likely to
accrue: The time period for settlement of a claim of any type is expected to be
less than 30 days. Annual accounts slips
of members: The shift from the present manual to the new system would make
accounts slip preparation both quicker and accurate. Electronic payments: In
the new system payments to members would be made through NEFT (National
Electronic Fund Transfer) mode. This
will ensure that claims once settled will be credited to members’ accounts
within 2 days instead of sending cheques by post which is time consuming.
Database update and cleaning: The new system has a robust database in the
backend and provides opportunity for gradual cleaning and updating of the
database. A clean and updated database
translates into better servicing for members.
In pursuance of Government’s
commitment to eliminate child labour in hazardous areas, the National Child
Labour Project (NCLP) Scheme covers 271 districts. Over 6.47 lakh children from
special schools of NCLPs have been mainstreamed into the formal education
system so far. The Mid Day Meal Scheme of Ministry of Human Resource
Development has been extended to children of NCLP schools w. e. f. 1st October,
2009, by way of convergence. Employment of children has been prohibited in two
more occupations, namely, ‘Circus’ and ‘Caring of Elephants’. Accordingly,
employment of children stands prohibited in 18 occupations and 65 processes
under the Child Labour (Prohibition and Regulation) Act, 1986.
Employment and Training:
Vocational Training with a view to
creating a world-class skilled labour force is being given maximum importance.
To help the youth build their career, training courses are offered through a
network of 2178 Industrial Training Institutes (ITIs) and 6464 Industrial
Training Centres (ITCs) located all over the country. About 1.19 million training seats are available
in these Institutes. Action continued
for upgradation of 100 ITIs with domestic resources, 400 ITIs with World Bank
assistance and 1396 ITIs in specific trade and skills under Public Private
Partnership (PPP) mode so as to create Centres of Excellence for producing
multi-skilled workforce of world standard. The ‘Skill Development Initiative’
(SDI) Scheme was started in 2006-07 for the school drop-outs and existing
workers especially in the informal sector. Action was taken to achieve the
objective to train one million persons in first five years in Modular
Employable Skills (MES) framework and thereafter one million every year. Apprenticeship Training is offered to the
school leavers and the ITI passed-out persons through a network of 25,472
establishments in 235 designated trades with an objective to provide skilled
workers for the industry. A quota of
2.94 lakh has been fixed to engage apprentices in these designated trades.
Skill Development Courses in diversified areas exclusively for women are being
offered through 1,213 ITIs / ITCs with the intake capacity of 51,804. However
Basic, Advanced, Instructors Skill Training and Short-term courses are offered
at National Vocational training Institute (NVTI) and 10 Regional Vocational
training Institutes (RVTIs) exclusively for Women with about 3,764 training
seats. A special scheme to train youth
of J&K region under SDI scheme is being launched. Under the scheme, 8,000
youths are proposed to be trained in 2010-11 and 8,000 in 2011-12 of which 25% will
be trained within J & K itself and 75% will be trained outside the State.
Training cost would be fully borne by the Central Government. Trainees would be provided boarding, lodging
& travel expenses, if they are required to stay away from their home. To
facilitate an accelerated and sustainable transformation and for expansion of
outreach of the vocational training , a scheme
has been prepared to set up 1,500
ITIs and 5,000 Skill Development Centres
(SDCs) in PPP mode under a project ‘Kaushal Vikas Yojana’ .
For Left Wing Extremism (LWE)
affected areas also a scheme in being initiated to wean away youth from violent
and destructive activities, namely, ‘Skill Development Plan for youth of 35
Districts affected by Left Wing Extremism’. As a short term measure 5,000 youth
of the region would be trained in identified existing ITIs / ITCs. As a long
term measure 228 ITIs and 927 SDCs are proposed to be set up in identified 35
districts across eight states affected by LWE. A
new centrally sponsored scheme for Upgradation of 20 ITIs and supplementing
infrastructure deficiencies in 28 ITIs in NE states and Sikkim is being
All the 969 Employment Exchanges in
the country are being modernized in
Public Private Partnership mode at a cost of Rs.2,167 crore under
e-governance plan. Under the Project, a
national web-portal will be developed, which on the one hand will have the
requirement of the industry and on the other hand, the available skilled
manpower. In addition, these Employment Exchanges will also assess the existing
competencies of the job-seekers, provide them counseling and guidance and help
in their placement in the industry. The National Employment Policy is being
formulated and the Report to the People on Employment has been placed in the
Impact of Economic Slow-Down on Employment:
The Labour Bureau conducted eight
quarterly quick employment surveys to assess the impact of economic slowdown on
employment in India covering units pertaining to important sectors like
textiles, leather, metals, automobiles, gems and jewellery, transport, IT/BPO
and handloom / powerloom etc. As
revealed by the results of different quarters studied so far, it may be
observed that the employment increased by 6.38 lakh during October-December,
2009, by 0.61 lakh during January-March, 2010, by 1.62 lakh during April-June,
2010 and by 4.35 lakh during July-September, 2010. Thus overall estimated
employment in the selected sectors has experienced a net addition of 12.96 lakh
in September, 2010 over September, 2009.
Labour Bureau has conducted the
first annual labour force survey on employment and unemployment for the
reference period from 1.4.2009 to 31.3.2010.
Based on the survey findings, on the basis of around 46 thousand
households, the unemployment rate, by following Usual Principal Status (UPS)
approach, has been observed to be 9.4%.
Labour Research & Education:
National Labour Institute undertook Skill Gap Analysis in Gulbarga Region in
Karnataka, conducted two international training programmes on ‘Prevention of
HIV/AIDS in the World of Work’ and ‘Leadership Development’ and conferred the
V.V. Giri Memorial Award in Labour & Employment
to Prof. Ravi Srivastava. The Central Board for
Workers Education (CBWE) conducted 4,109
programmes for 76,029 workers of organized sector, 4,792 programmes for
unorganized sector workers and 2,496 programmes for 1,01,310 rural sector
workers during May, 2009 to September, 2010.
Government of India has ratified ILO
Convention No. 127 concerning Maximum Weight. The Convention provides that no
worker shall be required or permitted to engage in the manual transport of a
load which by reason of its weight is likely to jeopardize his health or
safety. The maximum limit has been fixed at 50kg. A special Event was organized by Ministry of Labour &
Employment on 04.02.2010 at New Delhi in connection with the celebration of the
90th Anniversary of International Labour Organization. Government of India
participated effectively in the deliberations at various international fora
like International Labour Conference of ILO G-20 Labour and Employment
The 43rd Session of Indian Labour
Conference was held on November 23-24,
2010 in New Delhi under the Chairmanship of the Union Minister of Labour &
Employment. Minister of State for Labour & Employment Minister was Co-chairman
of the meeting. The ILC deliberated on Global
Financial Downturn – its impact- job losses – comprehensive package for
protection of labour force, etc.; Problem
of contract labour – social security, wages, etc. And amendments in the
contract labour legislations; and Employment Generation and Skill Development.