At long last, Labor Reforms are round the corner. Most the Labor Laws have been enacted around the Independence period and are outdated and irrelevant in today’s context. The Government of India, has finally woken up to pay heed to the cries of the Industry to make sweeping reforms in Labor Laws to help India be competitive in the Global Market.
The Government of India proposes Amendments to be made in Factories Act 1948 as notified by the Ministry of Labor and Employment, Government of India through its website.
STATEMENT OF OBJECTS AND REASONS
The present Factory Act, 1948 is very old and has not kept pace with the requirement of fast changing global economy, technological changes, integration of the global economy through trade, investment, financial engineering, multi- location value chain, growth of information technology.
The traditional inspection system is found inadequate to ensure work place safety and allied issues in a factory. The objectives are to ensure a safe and secure work place through a set of simple preventive and effective curative measures, foster an eco-system favorable to setting up of factories and creation of rapid employment opportunities.
The new system is aimed at making the factory environment evolving and dynamically adjusting to changing times. The salient features of the proposed system is, ―unobtrusive, transparent inspection to promote occupational safety, and prevent occupational diseases, sickness, health hazard and to put in place instrumentality(s) to create an ecosystem where labor intensive enterprise is encouraged, regulatory compliance is convenient, simple and encouraging, and cost effective to enable Indian produce competitive in the global market.