Ease of Compliance to Maintain Registers under various Labour Laws Rules

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Ease of Compliance to Maintain Registers under various Labour Laws Rules, 2017 (Labour Rules, 2017).

29 April 2017

Introduction

The Ministry of Labour and Employment, Government of India, has simplified the requirement for maintenance of registers under various labor laws by notifying the Labour Rules, 2017 on 21 February 2017, which will enable establishments to maintain combined registers under various labor legislations.

Maintenance of registers under certain labor laws

Prior to the enactment of the Labour Rules, 2017, there was a requirement to maintain various registers – for instance, muster roll and register of wages, register of persons employed, register of deductions for damages or loss and register of fines – under the rules made under the following legislations:

  1. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
  2. Contract Labour (Regulation and Abolition) Act, 1970
  3. Equal Remuneration Act, 1976
  4. Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  5. Mines Act, 1952
  6. Minimum Wages Act, 1948
  7. Payment of Wages Act, 1936
  8. Sales Promotion Employees (Conditions of Service) Act, 1976
  9. Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 (hereinafter referred to as “Labor Legislations”)

Most of the registers that were required to be maintained under the Labor Legislations were overlapping and had redundant fields and therefore were time consuming and not cost effective for the establishments.

Main features of the Labour Rules, 2017

  • In order to simplify the procedure for maintaining registers, combined registers will now have to be maintained in exact forms specified under the Labour Rules, 2017.
  • These registers can either be maintained in electronic form or in physical form.
  • The number of registers to be maintained under the Labor Legislations has been significantly reduced to 5 from the earlier requirement of 56, i.e., combined registers will now have to be maintained in only:
  1. Form A (Format of employee register)
  2. Form B (Format of wage register)
  3. Form C (Format of register of loan and recoveries)
  4. Form D (Format of attendance register)
  5. Form E (Format of register of rest/ leave), as specified in the Labour Rules 2017
  • The Labour Rules, 2017 have made amendments to the corresponding rules framed under the Labor Legislations, thereby replacing certain registers to be maintained under these Labor Legislations with the combined registers mentioned above.
  • Further, if the registers are maintained in electronic form, then their layout and presentation may be adjusted without changing their integrity, serial number and contents of the columns.

Implications

Maintenance of combined registers might facilitate ease of compliance, maintenance and inspection of registers by reducing the number of registers to be maintained to only 5.

This initiative might assist in making information easily accessible to the public through electronic means, thereby increasing transparency.

It may also reduce the compliance burden, including costs, for various establishments.

The Act has also provided guidance on a number of procedural aspects such as disclosure, discovery and inspection of documents; verification of pleadings; and imposition of costs.