Delhi government plans major overhaul of labour laws

After increasing the minimum wages by 30 to 40 per cent, the Delhi government said it also has further plans to overhaul the labour norms in the national capital.

The government will award contracts only if the service charges per person quoted is 7.5 per cent of the tender value or above under its new policy. According to labour minister Gopal Rai, it will help prevent unscrupulous contractors from demanding a cut from the employees’ wages.

The government pays service charge so that employers are compensated for their spending on employees’ uniform, equipment, conveyance and workspace amenities. “Usually the contractors make employees pay for service or management charges, it’s punishable by law,” Mr Rai said.

Earlier on Friday, the government had said it is set to increase the minimum wages by next week. Currently, the minimum wages are Rs 9,568 for unskilled workers, Rs 10,582 for semi-skilled workers and Rs 11,622 for skilled workers.

Those violating the minimum wage norms will have to pay an increased penalty, Mr Rai said. The Minimum Wages (Delhi Amendment) Bill 2015 has scaled up the penalty from Rs 5,000 to Rs 50,000 and the imprisonment term from six month to three years. The Bill is awaiting assent of the Centre.

Abhinav Rai, officer on special duty to the labour minister, said that the Cabinet has approved the new tender policy. According to him, all Delhi government departments have been directed to follow the new policy.

The government is planning to extend benefits of Provident Fund and Employees’ State Insurance to even minimum wage earners. “We are going take the matter up with the Centre,” Mr Rai said.

Stating that the minimum wages rules will apply to both the public and private sector, Mr Rai claimed that lakhs of contract workers in Delhi would benefit from the reforms initiated by the Aam Aadmi Party government.

A policy has also been drafted to regularise the contract workers in various government departments, according to Mr Rai. “We had sent the file to the lieutenant-governor. But he returned it, raising objection on provisions related to age relaxation and extra marks in recruitment exams to those already working with the government on contractual basis,” he said.

He added that the government is seeking legal opinion before resending the file for L-G’s nod.