THE KERALA LABOUR LAWS (SIMPLIFICATION OF RETURNS AND REGISTERS OF SMALL ESTABLISHMENTS) BILL, 2002

A BILL to provide for the simplification of forms of returns to be furnished and registers to be maintained by certain employers under certain labour laws in relation to establishments employing up to fifty employees.

Preamble.- WHEREAS, it is expedient to promote and facilitate the growth of small industries and business in the State and in pursuance thereof to reduce their administrative work by simplifying the forms of returns to be furnished and the registers to be maintained under certain existing labour laws in relation to certain industrial and commercial establishment employing up to fifty employees.

Be it enacted in the Fifty-third Year of the Republic of India as follows:-

1. Short title, extent and commencement.- (1) This Act may be called the Kerala Labour Laws (Simplification of returns and registers of small establishments) Act, 2002.

(2) It extends to the whole of the State of Kerala.

(3) It shall come into force on such date, as the Government may, by notification in the Gazette, appoint.

2. Definitions.- In this Act, unless the context otherwise requires,-

(a)“employer” in relation to a Scheduled Act, which defines such expression, has the same meaning assigned to it in that Act, and in relation to any other Scheduled Act, which does not define such expression means the person who is required to furnish returns or maintain registers under that Act;

(b)“establishment” has the meaning assigned to it in a Scheduled Act, and includes, a “commercial or other establishment” as defined in section 2 of the Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960);

(c)“Government” means Government of Kerala;

(d)“Scheduled Act” means an Act specified in the Schedule and includes the rules made thereunder;

(e)“small establishment” means an establishment in which not more than fifty persons are employed or were employed on any day of the preceding twelve months.

3. Amendment of certain labour laws.- On and from the commencement of this Act, the Scheduled Acts shall have effect subject to the provisions of this Act.

4. New form of returns and registers required to be maintained or furnished under certain labour laws.- (1) On and from the commencement of this Act, it shall not be necessary for an employer in relation to any small establishment to which a Scheduled Act applies to furnish the returns or to maintain the registers required to be furnished or maintained under that Scheduled Act:

Provided that such employer shall, –

(a) furnishes, in lieu of such returns, a Core Return in such form as may be prescribed, and

(b)maintains, in lieu of such registers, registers in such form, as may be prescribed.

(2) Save as provided in sub-section (1), all other provisions of a Scheduled Act, including in particular, the inspection of the registers by, and furnishing of their copies to, the authorities under that Act, shall apply to the returns and registers required to be furnished or maintained under this Act as they apply to the returns and registers under that Scheduled Act.

(3) Where an employer, in relation to a small establishment to which a Scheduled Act applies, furnishes returns or maintains the registers as provided in the proviso to sub-section (1), nothing contained in that Scheduled Act shall render him liable to any penalty for his failure to furnish any return or to maintain any register under that Scheduled Act.

5. Savings.- The commencement of this Act shall not affect, –

(a)the previous operation of any provisions of any Scheduled Act or the validity, invalidity, effect or consequence of anything done or suffered under that provision, before the relevant period;

(b)any right, privilege, obligation or liability already acquired, accrued or incurred under any Scheduled Act, before the relevant period;

(c) any penalty, forfeiture or punishment incurred or inflicted in respect of any offence committed under any Scheduled Act, before the relevant period;

(d)any investigation, legal proceedings or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment aforesaid; and

(e) any such investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment shall be instituted, continued or disposed of, as the case may be, in accordance with that Scheduled Act.

Explanation.- For the purpose of this section, the expression “relevant period” means the period during which an establishment is or was a small establishment under this Act.

6. Penalty.- Any employer who fails to comply with the provisions of this Act shall, on conviction, be punished,-

(a)in the case of the first conviction, with fine which may extend to rupees five thousand; and

(b)in the case of any second or subsequent conviction, with imprisonment for a period which shall not be less than one month but which may extend to six months or with fine which shall not be less than rupees ten thousand but may extend to rupees twenty five thousand or with both.

7. Power to amend the Schedule.- (1) The Government may, by notification in the Gazette, add to or delete any entry in the Schedule.

(2) Every notification made under sub-section (1) shall be laid before the Legislative Assembly.

8. Power to make Rules.- (1) The Government may, by notification in the Gazette make rules in order to, carry out the provisions of this Act and such rules may provide for the form of Core Return to be furnished and the form of registers to be maintained by the employers.

(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly while it is in session, for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the rule or decides that the rule should not be made, the rule shall there after have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

9. Power to remove difficulties.- If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.

THE SCHEDULE

(see section 2 (d))

(1) The Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960).

(2) The Kerala Casual, Temporary, Badli Workers (Wages) Act, 1989 (1 of 1990).

(3) The Kerala Payment of Subsistence Allowance Act, 1973 (27 of 1973).

(4) The Kerala Industrial Establishments (National and Festival Holidays) Act, 1958 (47 of 1958)

(5) The Kerala Industrial Employees Payment of Gratuity Act, 1970 (6 of 1970).

(6) The Kerala Head load Workers Act, 1978. (20 of 1980).

STATEMENT OF OBJECTS AND REASONS

Rules and Regulations framed under various State Labour Laws provide for maintenance of registers in the prescribed form and periodical submission of returns in the prescribed form. There have been persistent demands from all business and industrial establishments for simplification and reduction in the number of forms and registers required to be maintained or submitted by small establishments. In order to promote and facilitate the growth of small industries and business in the state and in pursuance thereof to reduce their administrative work it is proposed to simplify the form of returns to be furnished and the registers to be maintained under certain existing labour laws in relation to certain industrial and commercial establishment employing up to fifty employees without in any way effecting the social security measures such as recovery of contribution from employers and employees, their accountability, reimbursement etc.

2. The Bill seeks to achieve the above objects.

FINANCIAL MEMORANDUM

The Bill, if enacted, and brought into operation would not involve any additional expenditure from the Consolidated Fund of the state.

MEMORANDUM REGARDING DELEGATED LEGISLATION

1. Clause 8 of the Bill seeks to empower the Government to add to or delete any entry in the schedule.

2. Clause 8 of the Bill seeks to empower the Government to make rules to carry out the purpose of the Act. Such rules may provide for the form of Core Return to be furnished and form of registers to be maintained by the employers,

3. Clause 9 of the Bill seeks to empower the Government to issue orders, for removing difficulties in giving effect to the provision of the Act,

4. The matter to be prescribed or the orders or notifications to be issued are matters of procedure and details and are of routine and administrative in nature. Further the rules are subject to the scrutiny by the Legislative Assembly after issue. The delegation of legislative power is, therefore, of a normal character.