No Factories Act In the Public Interest for 1000 days - Uttar Pradesh

Factories (Uttar Pradesh Amendment) Act, 2020

New Section 5A is inserted - Power to Exempt in Public Interest

Dated Lucknow, October 20, 2020.

In pursuance of the provisions of clause (3) of Article 348 of the Constitution, the Governor is pleased to order the publication of the following English translation of the Kaarkhana (Uttar Pradesh Sanshodhan) Adhiniyam, 2020 (Uttar Pradesh Adhiniyam Sankhya 32 of 2020) as passed by the Uttar Pradesh Legislature and assented to by the President on October 9, 2020. The Shram Anubhag -3 is administratively concerned with the said Adhiniyam. 

Thus we understood that the State Government of Uttar Pradesh has issued the Factories (Uttar Pradesh Amendment) Act, 2020 further amending the Factories Act, 1948 in its application to the State of Uttar Pradesh.

A new Section 5A is inserted granting the State Government with the power to exempt a factory from the provisions of the Factories Act in the public interest. As per the amendment, the State Government by notification may temporarily exempt new factory or class of new factories whose commercial production starts within a period of one thousand days after the commencement of Factories (Uttar Pradesh Amendment) Act, 2020 from all or any provisions of the Act for a period of 1000 days from the date on which such production starts.

THE FACTORIES (UTTAR PRADESH AMENDMENT) ACT, 2020 

(U. P. Act no. 32 of 2020) 1917 vidjeti [As passed by the Uttar Pradesh Legislature] 

AN

ACT

further to amend the Factories Act, 1948 in its application to Uttar Pradesh. 

IT IS HEREBY enacted in the Seventy-first Year of the Republic of India as follows: 

 

1. Short title and extent

(1) This Act may be called the factories (Uttar Pradesh Amendment) Act,  2020. 

(2) It shall extend to the whole of the State of Uttar Pradesh.

Insertion of section 5A after section 5 of the Act no. 63 of 1948 

2. In The Factories Act, 1948 after section 5, the following section shall be inserted, namely: 

Section 5A :- Power to Exempt in Public Interest

Where the State Government is satisfied that to create more economic o exempt activities and employment opportunities, it is necessary in in public interest the public interest to do so, it may by notification in the Gazette, exempt new factory or class of new factories which are established and whose commercial production starts within a period of One Thousand (1000) days after the commencement of Factories (Uttar Pradesh Amendment) Act, 2020, from all or any provisions of the Act conditionally or unconditionally for a period of One Thousand (1000) days from the date on which such production starts.

STATEMENT OF OBJECTS AND REASONS

The Factories Act, 1948 was enacted with a view to regulate the working condition, safety, security and welfare of workers employed in factories. .

Due to increasing spread of COVID-19 the economic activities of the country including the State of Uttar Pradesh have been shattered and a large number of migrant workers returned to Uttar Pradesh resulting in widespread unemployment. Therefore, in order to give boost to industries, attract and thereby increase employment opportunities it is felt necessary to provide relaxation from a labour laws including the factories Act. 

Section 5 of the factories Act, 1948 empowers the State Government to grant e provisions of the said Act in case of public emergency only. In order to deal with the disruptive economic impact of COVID-19 pandemic, and amendment is required in the factories Act, 1948 empowering State Government to give such exemption in public interest. 

It is also felt that such exemption shall be temporary for a limited period and shall be given to those factories which will be established and whose commercial production will be started after the proposed amendment. 

Therefore the Factories (Uttar Pradesh Amendment) Bill, 2020 is introduced accordingly. 

Add caption

Please Subscribe for regular updates & interpretation

Confinement Expenses Increased to Rs 7500 - ESIC

Confinement Expenses

Employees' State Insurance (Central) Amendment Rules 2020

Confinement Expenses Increased to Rs 7500 from Rs 5000 - ESIC

The Ministry of Labour and Employment (MoLE) on October 27, 2020 has issued the Employees' State Insurance (Central) Amendment Rules, 2020, Notification No.: G.S.R. 676(E), by further amending the Employees' State Insurance (Central) Rules, 1950 and shall come into force on October 27, 2020.

In the Employees’ State Insurance (Central) Rules, 1950, in the Rule 56-A, for the words “rupees five thousand”, the words “rupees seven thousand five hundred” shall be substituted and the amended Rule56-A shall now be read as, namely;

“Rule 56-A. Confinement Expenses — An insured woman and an insured person in respect of his wife shall be paid a sum of Rupees seven thousand five hundred per case as confinement expenses on account of confinement expenses:

Provided that the confinement occurs at a place where necessary medical facilities under the Employees’ State Insurance Scheme are not available:

Provided further that confinement expenses shall be paid for two confinements only.”

Please Note - Confinement Expenses is lump sum payment made to an insured woman or an insured person in respect of his wife if the confinement occurs at a place where necessary facilities under the ESI Scheme are not available. 

PF to be Increased to Rs 25000 from Rs 15000 - CBT to Ministry of Labour

CBT members have proposed to the Ministry of Labour to cut contribution and increase the EPF cover wage limit for the country’s 4.5 crores PF members

EPFO Central Board of Trustees (CBT) members have started pressuring them citing the interest of employees. Members have demanded the Labour Ministry to include it on the agenda of the next board meeting.

The Board members have made it clear in the proposal that, like the ESIC scheme of the ministry, the ceiling of the coverage of employees has been increased to 21 thousand salary, similarly, the wage limit of contribution deduction of PF members should be increased from 15 thousand to 25 thousand.

At present, the maximum amount of PF contribution is reduced to Rs 1800 per month on 15 thousand rupees. The employer collects the same amount, but given the time, this amount is less. Therefore the deduction limit should be 25 thousand. 25 thousand to be deducted on salary or basic.

EPFO CBT member Harbhajan Singh said to media that the members have given the proposal to the Union Labour Minister along with the ministry. Increasing the cover limit will strengthen the PF account of the employees and will also deposit a huge amount in EPFO ​​fund.

Harbhajan Singh further said that the minimum pension is still one thousand rupees. Inadequate according to the current time and circumstances. The members have proposed to increase it to 7.5 thousand.

EPFO can use the funds lying in inoperative accounts to increase the pension. Unclaimed money has never been cleared. In the year 2014, the unclaimed amount was 40 thousand crores and in the last financial year, it was stated as 27 thousand crores. These issues will also come up in the board meeting., he said.

COMPARISON BETWEEN EXISTING IR ACTS AND IR CODE 2020 

SUBJECT	INDUSTRIAL RELATIONS CODE	EXISTING LAW
INDUSTRY	Exclusions from the definition of ‘industry’ – Excluded Any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit, but does not include— (i) institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; or (ii) any activity of the appropriate Government relatable to the sovereign functions of the appropriate Government including all the activities carried on by the departments of the Central Government dealing with defense research, atomic energy and space; or (iii) any domestic service; or (iv) any other activity as may be notified by the Central Government.	Did not exclude except domestic service that too by judicial interpretations
FIXED TERM EMPLOYMENT	Fixed term employment will be eligible to all statutory benefits including gratuity which will be available to him even for serving for one year.	Did not exist
RETRENCHMENT	Besides other exclusions, the revised definition also excludes termination of service of a worker as a result of completion of tenure of fixed term employment will be eligible to all statutory benefit including gratuity for serving for one year.	Did not exist
EMPLOYEE	Introduced in the Industrial Relations Code, 2020. Covers any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward.	Never existed except ‘workman’ which has not been incorporated in the Code
EMPLOYER	Employing employees directly or through any person i.e. Occupier of a factory and any person having ultimate control over the affairs of establishment.	Trade Union Act did not define. Industrial Employment (SO) Act and Industrial Disputes Act defined but did not include occupier of a factory
WORKER	Includes working journalists as defined in clause (f) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 and sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976. As well as all persons employed in trade or industry, and includes the worker as defined in clause (m) of section 2 of the Unorganised Workers’ Social Security Act, 2008.	Only workman was defined under Industrial Disputes Act whereas in other relevant Acts reference was made to an ‘employee’
REGISTRATION OF TRADE UNIONS	Any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Code with respect to registration. No Trade Union of workers shall be registered unless at least ten per cent. of the workers or one hundred workers, whichever is less, engaged or employed in the industrial establishment or industry with which it is connected are the members of such Trade Union on the date of making of application for registration.	Only seven or more members could apply for registration
NEGOTIATING UNION OR NEGOTIATING COUNCIL	It has plugged loophole: exploiting the multiplicity of unions in an establishment / organization by introducing concept negotiating union or negotiating council.	Did not exist
TRADE UNION FORUM FOR APPEAL	Appeal against non-registration or cancellation of registration lies only before Tribunal	It lies before High Court also
APPROPRIATE GOVERNMENT	In addition to similar that of Industrial Disputes Act, 1947 etc. it has clarified that in case of any dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government.	No such provision existed
INDUSTRIAL ESTABLISHMENT Its segregation	Allows exclusion of severable from the other unit or units of such establishment or undertaking which is not carrying on or aiding the carrying on of any such activity, such unit shall be deemed to be a separate industrial establishment or undertaking.	Did not exist.
METRO RAILWAY	Incorporated in the Code	Did not exist
UNORGANISED SECTOR	Incorporated in the Code	Did not exist
OFFICE BEARER FOR UNORGANISED SECTOR	Not more than one-third of the total number of the office-bearers or five, whichever is less, shall be persons actually engaged or employed in the establishment or industry with which the Trade Union is connected	Did not exist
CONCILIATION OF AN INDUSTRIAL DISPUTE	Conciliation shall not holding any proceedings relating to beyond two year	No such limitation
ADJUDICATION OF DISPUTE OF TRADE UNION	It will be by Tribunal and not Civil Court	Only Civil Court had the jurisdiction to decide the dispute
NOTICE OF CHANGE	21 days’ notice to be given when any change required in Third Schedule. An exemption by appropriate government may, by notification, direct that the provisions of the said section shall not apply or shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or to that class of workers employed in any industrial establishment.	Did not exist
INDUSTRIAL TRIBUNAL	Would consist of two members to be appointed by the appropriate Government out of whom one shall be a Judicial Member and the other, an Administrative Member.	Only single member was consisted in the Industrial Tribunal
LIMITATION FOR RECOVERY OF MONEY DUE FROM EMPLOYER	For one year	No limitation existed section 33C(2) of the Industrial Disputes Act
RETRENCHED WORKER	Re-employment of – within a period of one year only	No such period was prescribed
FLASH STRIKE	Completely prohibited	No such prohibition
PROHIBITION OF STRIKE IN LOCKOUT	Strikers required to give a notice at least 14 days in advance to the employers if they wanted to go on strike. Such notice valid upto 60 days. Strike prohibited during pendency of proceedings before tribunals or arbitrator.	Only in public utility services 14 days notice was to be given
REPRESENTATION OF WOMEN	Adequate in proportion of total women workers	As far as possible
TIME LIMIT FOR APPLICATION	One year	No limitation
WORKERS RESKILLING FUND	Consisted of the contributions of the employer of an industrial establishment an amount equal to fifteen days wages last drawn by the worker immediately before the retrenchment, or such other number of days as may be notified by the Central Government, for every retrenched worker in case of retrenchment only.	Did not exist
POWER TO EXEMPT	Appropriate government could exempt contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new undertakings that it is necessary in the public interest so to do, it may, by notification, exempt, conditionally or unconditionally, any such new establishment or new undertaking or class of new establishments or new undertakings from all or any of the provisions of this Code for such period from the date of establishment of such new industrial establishment or new undertaking or class of new establishments or new undertakings, as the case may be, as may be specified in the notification.	Did not exist except partially under Industrial Employment (Standing Orders) Act, 1946
GRIEVANCE COMMITTEE	Increased the role of the grievance committee also providing the decision of the Grievance Redressal Committees on any application filed under sub-section (5) shall be made on the basis of majority view of the Committee, provided more than half of the members representing the workers have agreed to such decision, otherwise it shall be deemed that no decision could be arrived at by the Committee. Maximum number of limit is increased to 10.	Some provision existed but were not exhaustive
STANDING ORDERS	Applies in an industrial establishment wherein three hundred or more than three hundred workers, are employed, or were employed on any day of the preceding twelve months. However, the provisions of Chapter IV shall not apply to an industrial establishment in so far as the workers employed therein are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Service (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government, apply.	100 or more. In most of States it has been fifty or even lesser workers
STRIKE	Includes was casual leave on a given day fifty per cent or more workers employed in an industry	Did not exist
WAGES	Excludes various allowance like conveyance allowance and house rent allowance	Excluded house rent allowance, conveyance allowance
PRIOR PERMISSION FOR LAY OFF, RETRENCHMENT AND CLOSURE IN INDUSTRIAL ESTABLISHMENT	Applies to an establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which not less than three hundred workers.	Applied for industrial establishment where 100 or more workers are employed
COMPOSITION OF OFFENCES	Could be resolved for a sum for a sum of fifty per cent. of the maximum fine provided for such offence punishable with fine only and for a sum of seventy-five per cent provided for such offence punishable with imprisonment for a term which is not more than one year or with fine.	Did not exist

 Ready Reckoner - Pan India Leave Matrix

Leave Type	Sick Leave	Casual Leave	Privileges' Leave	Earned Leave	Carry Forward (PL/EL/AL only)
Karnataka	12			1 day for every 20 days worked	30
Andhra Pradesh	12	12		15	60
Tamil Nadu	12	12		12	24
Maharashtra		8		1 day for every 20 days worked	45
Punjab	7	7		1 day for every 20 days worked	40
Kerala	12	12		12	24
Uttar Pradesh	15	10		15	45
Delhi	12		15		45
Madhya Pradesh		14	30		90
Haryana	7	7		1 day for every 20 days worked	40
Odisha	15			1 day for every 20 days worked	30
West Bengal	14	10	14		PL:28, SL:56
Bihar	12	12		1 day for every 20 days worked	45
Rajasthan	1 day for every 20 days worked				30
Gujarat	7	7		21	42
Goa	9	6		15	45
Assam	12	12		16	30
Jharkhand	12	12		1 day for every 20 days worked	45
Chandigarh	7	7		1 day for every 20 days worked	40
Chattisgarh		14	30		90
Uttarkhand	15	10		15	45
Jammu & Kashmir		14	30		90
Sikkim	12	12	12		60
Nagaland	12	12	16		60
Pondicherry	12	12	12		24
Thripura	14	12	15		PL:56, SL:112