Simplification of labour laws will benefit both workers and industry. Those conversant with labour laws will support the amendment in the Payment of Bonus Act passed by Parliament for increasing the eligibility and entitlement of beneficiaries. It should, however, be along the lines of the Payment of Gratuity Act. There should no salary limit and all employees should get the benefits.
However, retrospective application of the amendment will create innumerable problems for employers. Labour Minister Bandaru Dattatreya's explanation that the amendment was to be implemented in 2014 and that's why the date of applicability could not be changed, does not solve the problems that employers will face.
The government must keep the cut-off date of its applicability on hold till it is suitably rectified.
H L Kumar, New Delhi
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