Well-laid, coherent laws will help regularize the labor market, develop synergies with the international market and also attract more highly skilled labor, thus boosting the Make in India mantra and position India at par with global manufacturing hubs like China.
Supporting the Honorable PM's slogan of Shrameva Jayate, the Chamber reiterates that this is a much needed step after the Trade Union Amendment Bill, 2000, which had altered the minimum statutory requirement for registration of trade unions and curtailed multiplicity of trade unions.
ASSOCHAM feels that this step will lead to broader labour reforms and increase employment generation - from its nominal growth level of 1.6% in the past to a targeted level of 8% in future, and is confident about the following:
Unique Identification Number to industrial units will facilitate online registration, thereby reducing complications and time lag
Curbing arbitrary powers of labour inspectors will help dismantle the 'inspector raj' and build credibility and transparency in the system
The proposed unified labour portal 'Shram Suvidha' will facilitate easier, increased compliance with labour laws and build the much needed trust in labour administration
A single consolidated return form, instead of 16 different forms currently, will reduce administrative challenges and greatly assist industrial units in future compliance
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The labor facilitation portal will ensure easy access to Employee Provident Fund (EPF) and Employee State Insurance (ESI), thereby increasing ESI claim ratio from current sluggish levels of 48%
Reforming labor laws will not only ensure better compliance by production units, thus increasing labor welfare but also provide a win-win situation for all the stakeholders and further strengthen India's position as an attractive destination for foreign investment.
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