Assocham concerned over amendment to ID, Contract Acts

NEW DELHI: Assocham on Friday expressed serious concern at the amendment Bills relating to the Industrial Disputes Act, Contract Labour and Payment of Bonus Acts saying these would damage industry in the present competitive business environment.
Associated Chamber of Commerce and Industry (Assocham) said the introduction of the private Bills had come at a time when the second National Commission on Labour had already submitted its recommendations to the government on labour law reforms.
The suggestion made in the ID Act (Amendment) for removing the ceiling on wages from the definition of workmen is disastrous as it proposed to encompass all persons employed in the supervisory capacity as workmen which would only result in multiplicity of litigation and affect the working environment and efficiency, the chamber said in a statement.
The chamber pointed out that the amendment to the Contract Labour (Regulation and Abolition) Act was equally damaging since it suggests automatic absorption of contract labour in regular employment in the establishment, if the particular process is declared as of permanent nature by the appropriate government.
"This goes against the spirit of the recommendation of the National Commission of Labour which has advocated liberalising the rigid laws concerning engagement of contract labour and will nullify the efforts of the government to create more jobs," Assocham said.
The chamber said Payment of Bonus (Amendment) Bill had proposed removal of current ceiling of Rs 3,500 wages as eligibility to bonus and extending coverage to all employees.