New
Delhi: Move away socialism, laissez faire is here.
Companies and establishments, employing less than 1,000 workers, can
lay off employees or close down the company without having to seek the
governments permission.
But wait a minute. Let Finance Minister Yashwant Sinha get his budget
proposals approved by the Parliament. Empowering companies with the
right to hire and fire is part of the labour reforms he has
incorporated in the Union budget for 2002-03.
For companies located in special economic zones and 100-per cent
export-oriented units, it would be much simpler. Such companies may
also be kept out of the purview of the 1,000-employees norm.
There is something to cheer about for the retrenched workers as well.
There is a proposal to enhance the compensation package for workers
who lose their jobs. By amending the Industrial Disputes Act, the
government will make it mandatory for corporate bodies to pay 45 days
wages for every year of completed service as against the present 15
days.
The group of ministers headed by Planning Commission deputy chairman K
C Pant has already approved these labour reform measures, which have
now to be approved by the Cabinet before these are incorporated in the
budget proposals.
There is also the proposal to provide protection under the social
security net to all workers and employees drawing a monthly salary of
Rs 6,500 per month and less under the Payment of Wages Act. At
present, only workers drawing up to Rs 1,600 per month get protection
under this Act.
Sinha will spell out norms for protection, apart from ensuring payment
of agreed wages, in the second-generation reforms package of the
budget. The budget may also incorporate specific pension schemes for
agriculture workers as part of the pension reform.
There is a proposal to insure agricultural workers against short
spells of non-employment between seasons. While some insurance
companies are already contemplating such schemes, the state-owned Life
Insurance Corporation has launched a pilot project.
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