Employment Current Affairs

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Parliament passes The Employees Compensation (Amendment) Bill, 2016

The Parliament has passed The Employees Compensation (Amendment) Bill, 2016. The Bill amends the Employee’s Compensation Act, 1923.

It ensures compensation up to Rs 1 lakh to employee if an injured in an industrial accident and imposes hefty penalty in case of any violation by the employers.

Salient features of the Bill
  • Mandatory for employers to inform the employee of his right to compensation under the Act. Such information must be given in writing at the time of employing him.
  • Employer will be penalised if he fails to inform his employee of his right to compensation. Such penalty may be between Rs. 50,000 to Rs. 1 lakh.
  • Raises amount in dispute related to compensation, distribution of compensation, award of penalty or interest, etc to Rs. 10, 000. It permits the central government to further raise this amount.
  • Provision of withholding payments pending appeal if an employer has appealed against a Commissioner’s order has been deleted.
The Employee’s Compensation Act, 1923
  • It provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases.
  • It provides that any dispute related to an employee’s compensation will be heard by a Commissioner (with powers of a civil court).
  • Under it, appeals from the Commissioner’s order, related to a substantial question of law, will lie before the High Court only if amount in dispute is at least Rs. 300.


Union Cabinet approves Reforms to boost employment generation and exports in Made-ups Sector

The Union Cabinet approved proposal of the reforms to boost employment generation and exports in the Made-ups manufacturing Sector.

It approved budget of Rs. 6,006 crore for the apparel package in a time bound manner. The main objective is generating direct and indirect employment of upto 11 lakh persons over the next three years the made-ups sector.

Following interventions have been approved
  • Providing production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for Made-ups.
  • Extending Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme (for apparel) to made-ups sector.
  • This extension will provide additional 3.67% share of Employer’s contribution in addition to 8.33% already covered under PMRPY for all new employees enrolling in EPFO.
  • Extending Rebate of State Levies (ROSL) (for apparel) Scheme to made-ups sector for enhanced Duty Drawback on exports of Made-ups.
  • Simplification of labour laws: (i) Increasing permissible overtime working hours up to 100 hours per quarter in Made-ups manufacturing sector. (ii) Making employees’ contribution to EPF optional for employees earning less than Rs 15,000 per month.

The reforms and interventions are expected to boost employment in the textile sector especially in Made-ups manufacturing Sector. It will create employment for upto eleven lakh persons and lead to increase in exports.