Bonus Issue – Report on detailed discussions and conclusions of 46th ILC
Removal of Conditions on payment Ceiling eligibility Limits, Decisions
to pay Minimum Bonus without linking to loss when the performance
indicator satisfy grant of bonus- The major conclusions emanating from
the discussions in the committee are as follows:
The Conference committee on amendment of Bonus Act – Removal of
Conditions on Payment Ceiling, Eligibility Limits. Decisions to pay
Minimum Bonus without linking to loss when the performance indicator
satisfy grant of bonus constituted to discuss the Agenda item No. 3 of
46th session of the Indian Labour Conference met under the chairmanship
of Captain Abhimanyu, Minister of Labour, Govt. of Haryana. Shri Om
Prakash Mittal, General Secretary, Laghu Udyog Bharti (LUB) and Ms.
Meenakshi Gupta and Mr. B.B. Mallick, Joint Secretary, MoLE respectively
were the Vice-Cheirman and Member Secretary of the Committee. The
Committee had the representation of all the stake-holders (Workers’
Group, Employers’ Group and State Government).
2. At the very outset, the chairman of the committee welcomed all the
representatives. He observed that the issue of bonus has been pending
for long.
He expressed the hope that all the partners would understand and
appreciate the position of each other and give recommendations keeping
in the view the larger national interest. The Vice-Chairman also
welcomed all the Members. Thereafter, the Member Secretary introduced
the subject. The agenda has following 3 issues:-
(i) Removal of calculation ceiling;
(ii) Removal of Eligibility Limit; and
(iii) Decisions to pay Minimum Bonus without Linking to loss when the performance indicator satisfy grant of bonus.
3. It was mentioned that last revision in the limits (Calculation
Ceiling – Rs. 3500 and Eligibility Limit-RS. 10,000) was done in 2007
based on the recommendations of the 41st ILC.
4. The committee had very intense detailed discussions on all the aspects of the Agenda Item no. 3.
(i) The Trade Unions were of the view that all the ceilings under the
payment of Bonus Act. 1965 i.e. eligibility ceiling, calculation ceiling
and maximum percent of bonus payable need to be removed. They further
expressed that they would like to reiterate the stand taken by them in
the tripartite meeting held on 20 October, 2014.
(ii) The Employers, representatives were of the view that total removal
of various ceilings may lead to spurt in industrial relation issues.
They observed that while making any change in the payment of Bonus Act,
1965 productivity of the workers and paying capacity of the employers
have to be taken into account. They further observed that they are not
in favour of indexation of cost of living for the purpose of ceiling and
bonus calculation. The term ‘Employee’ should be substituted by the
term ‘workman’ as defined under the industrial disputes Act. The present
system of prescribing limits both for eligibility and calculation
should be retained.
(iii) The State Government representatives were of the view that
minimum, limit of bonus (8.33%) may continue. Regarding limits with
regard to calculation and payment ceiling it was stated that they had no
comments to offer. They further observed that distinction between
statutory bonus and productivity linked bonus is quite relevant in this
regard.
(iv) The State Government representatives also suggested that the
central Government may consider notifying the limits for eligibility of
bonus and calculation of bonus through and administrative process based
on tripartite mechanism rather then legislative process every time.
Appropriate amendment to the payment of Bonus Act, 1965 may have to be
carried out accordingly.
Labour laws Amendments proposed/ done by central or State Governments Conclusions of the committee are as follows:-
1. The committee reiterates historical role of tripartite mechanism
functioning in the country before any enactment/ amendment of labour
laws.
2. Any labour law amendments/ enactment should take into account three purpose namely:
(i) justifys and welfare of workers;
(ii) Sustainability of enterprises and job creation; and
(iii) Industrial peace.
3. The labour laws need to be relooked and updated in a time bound manner.
4. Committee recommends that the overall exercise of the labour law
amendments should be discussed in the tripartite forum and the broad and
specific proposals should also be discussed in tripartite meetings.
Recommendations of committee on “Employment and Employment Generation” of 46 the Indian Labour conference (ILC) are as follows:-
1. The committee noted that the recommendations of 43rd to 45th ILC on
Employment & Employability need to be fully implemented.
2. Recognising the employment potential in micro and small industry,
especially in rural areas, an effective single-window system be
established to promoted agro-based and micro & small industries with
facility like concessional finance etc. A system for centralized
marketing of products manufactured by these industries can also be
developed.
3. Enhance the outlays and threshold for public employment generation programmes in both rural and urban areas.
4. Fill up vacant posts in Central Government, State Governments and Public Sector Undertakings in a time bound manner.
5. Reiterate the necessity for publishing quarterly employment and unemployment data.
6. With Central and State Government moving to on-line systems for
employment exchanges there is a need for capacity building of Employment
Exchanges officers for their revised roles under National Career
Service (NCS). Need for integration of Central and State IT initiatives
to avoid duplication.
7. Utilization of idle capacity in Vocational and Educational
Institutions and closed/ sick industry for demand responsive training.
8. Enhance and expand areas for Recognition of Prior Learning (RPL) with effective assessment.
9. Enhance number and improve quality of assessors for vocational training and consider including ITI faculty for assessments.
10. To identify labour-intensive industries and new areas where jobs can
be created like renewable energy and reusable resources etc. and
providing employment liked training.
11. Evolve strategies for increasing female workforce participation in both public and private employment.
Source: PIB News
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