The Indian Chamber of Commerce and Industry, Coimbatore (ICCIC) has requested the Union Labour Minister to make some changes in the draft of the Small Factories(Regulation of Employment and Conditions of Services) Bill 2014 so as to benefit the interest of trade and industry in the region.

In a representation made to Narendra Singh Tomar, Union Minister for Labour and Employment, D Nandakumar, President, ICCIC, said the ministry has planned to bring about a comprehensive law covering the MSME sector. A draft Bill has reportedly been finalised after wide ranging discussions by the working group constituted by the ministry.

Giving the views of the ICCIC in this regard, he said under the draft Bill, the industrial units were required to provide information to inspectors of the labour department and failure to do so will attract provisions of the Criminal Procedure Code.

He argued that the intention of the Bill was to give a push to the small industries which did not have the manpower and infrastructure to comply with extensive formalities. The responsibility of opening a bank account with zero balance should be vested with the employees rather than with the employers.

Adverting to the clause on Prohibition of Employment of Children and Young Person, Nandakumar pointed out that even under the existing Factories Act, no written approval was required to employ trainees who later become workmen between 16-19 years of age and wanted the clause to be appropriately amended.

He said the draft bill has sought to increase the rate of health insurance when the employers felt even the old rates were high and wanted them to be retained. He said the Factories Act at present required maintenance of crèche in a factory where 30 or more women workers were employed in a factory.

Reducing this to 20 women employees will increase the responsibilities of small industries and the present provision should be left unchanged.

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