Oct 01, 2016

Overhaul of Employment Laws

The following bills have been recently introduced in the Parliament:i.  The Union Cabinet has, in its meeting dated June 29, 2016, approved the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016, with an intention to inter alia align the statutory provisions on conditions of employment across various States and Union Territories;ii.  The Rajya Sabha has, on August 11, 2016, passed the Maternity Benefit (Amendment) Bill, 2016 to amend the Maternity Benefit Act, 1961, to inter alia increase the maternity leave period in certain circumstances, provide for a ‘work-from-home’ option for women, and provide crèche facilities in certain establishments. This Bill will be notified upon receipt of approval from the Lok Sabha and receipt of Presidential assent;iii.  The Lok Sabha has, on August 9, 2016, passed the Employees’ Compensation Amendment Bill, 2016, to amend the Employee’s Compensation Act, 1923, to inter alia, introduce an obligation on the employer to notify the employee of the compensation amount at the time of appointment. This Bill will be notified upon receipt of approval from the Rajya Sabha and receipt of Presidential assent; andiv.  The Lok Sabha has, on August 10, 2016, passed the Factories Amendment Bill, 2016 to amend the Factories Act, 1948, to inter alia provide for increase in the maximum permitted overtime hours. This Bill will be notified upon receipt of approval from the Rajya Sabha and receipt of Presidential assent.We will be providing a detailed update on the above proposed legislations once the same have been enacted.

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