Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act: Changes & Impact

divyaThe Law and Judiciary Department, Government of Maharashtra vide its notification published in the Maharashtra Government Gazette on 5 January 2017 has made significant amendments in Contract Labour (Regulation and Abolition) Act for the state of  Maharashtra.

Now the said act will be applicable:

  • To every establishment in which 50 (fifty) or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
  • To every contractor who employs or who employed on any day of the preceding twelve months 50 (fifty) or more workmen.

Prior to the Amendment, the limit for applicability of the said Act in the State was 20 (twenty) or more workmen which was a small number . As we are aware that most of the medium and small enterprises are human intensive hence MSMEs were required to required to comply with more regulations.

Post 5th of January, 2017 business entities employing less than 50 contract labour or contractor employing less than 50 employees during preceding 12 months will be exempted .This will make operations easier for upcoming small scale units. Less number of compliance will lead to less complexity & the same will motivate higher number of start-ups to grow their roots in the state of Maharashtra.

Disclaimer : This is an effort by Lexcomply.com to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts. 

Managing Human Resource (HR) Laws Compliance using Technologies

Lexcomply.com enables HR departments to identify, allocate, manage and report statutory compliances. In HR function Statutory Compliances are of immense importance. In India it is not only the Central Government but also the state governments which have enacted various Acts/Laws for welfare of workmen and governing their terms of employment. Some of the labour laws are listed here-under :

1) The Employees Compensation Act, 1923 and The Workmen’s Compensation Rules 1924
2) The Child Labour (Prohibition and Regulation) Act, 1986 and the Child Labour (Prohibition and Regulation) Rules, 1988.
3) The Employees Provident Fund & Miscellaneous Provisions Act, 1952 and Employees’ Provident Funds Scheme, 1952
4) The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 and The Employee’s Deposit Linked Insurance Scheme, 1976
5) The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees’ Pension Scheme, 1995.
6) The Employees’ State Insurance Act, 1948 And The Employees’ State Insurance (Central) Rules, 1950 And The Employees’ State Insurance (General) Regulations, 1950
7) The Employer’s Liability Act, 1938
8) Equal Remuneration Act 1976 and Equal Remuneration Rules, 1976
9) The Payment of Bonus Act, 1965 and Payment of Bonus Rules, 1975
10) The Minimum Wages Act 1948 and The Minimum Wages Central Rules, 1950
11) The Apprentices Act, 1961 & Apprenticeship Rules, 1992
12) The Employment Exchanges (Compulsory Notification Of Vacancies) Act, 1959 and Employment Exchanges (Compulsory Notification Of Vacancies) Rules, 1960
13) The Punjab Labour Welfare Fund Act, 1965 and The Punjab Labour Welfare Fund Rules, 1966
14) Inter State Migrant Workmen (Regulation Of Employment & conditions Of service) Act, 1979 and Haryana Inter State Migrant Workmen (Regulation Of Employment & conditions Of service) Rules, 1981
15) The Punjab Shops and Commercial Establishments Act, 1958 and The Punjab Shops and Commercial Establishments Rules, 1958
16) Payment of Gratuity Act, 1972 and Haryana Payment of Gratuity Rules,1972
17) Payment of Wages Act, 1936, Payment of wages (Haryana Amendment) Act, 1985 and The Punjab Payment of Wages) Rules, 1937
18) The Minimum Wages Act 1948 and & The Punjab Minimum Wages Rules 1950
19) Contract Labour (Regulation And Abolition) Act, 1970 and Haryana Contract Labour (Regulation And Abolition) Rules, 1975
20) The Factories Act & Haryana Factory Rules

And these laws are dynamic and are changing on day to day basis. Non compliances may result in monetary penalty; closure of business operations or imprisonment. So e-HRM(Compliance) tools like LexComply.com generates due date, event based and ongoing compliances on its own hence chances of non-compliance go down.

Hence HR function can use e-HRM solutions to de-risk an organization from negative impact arising out of exit of key employees, high employee turnover and impact of regulatory non compliances.

For more details and demo please contact at info@lexcomply.com or visit at http://www.lexcomply.com