Laboured Laws: Fix India’s rigid labour laws first, deterrent punishment for violations can follow

Labour Law
The draft labour code on social security 2018 talks of community service for individuals in a company’s top management for violations of mandatory social security provisions. If a violation attracts a fine and a jail sentence of up to two years, the choice of undertaking a fixed number of hours of community service will be extended to the top executives in lieu of the jail term. Violations that will attract a community service order include failure to pay social security contribution of workers, maintain records and furnish information to inspectors, pay gratuity, provide creche facility and retrenching women workers during maternity leave.
Over 48,000 firms in the country had been listed by the Employees’ Provident fund Organisation for failing to deposit provident fund contributions for March 2018—EPFO contributions are mandatory for firms hiring at least 20 workers while those that have at least 10 must provide employees medical coverage under the Employees’ State Insurance Corporation (ESIC). The idea is to have a form of punishment that could serve as a deterrent while not meaning imprisonment. Many developed nations use it to punish lesser offences.
Source: Financial Express

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