The State Government has implemented Voluntary Compliance Scheme to save entrepreneurs and employers from unnecessary difficulties due to plethora of labour laws, registers and returns.
Through the scheme, entrepreneurs will be motivated for complying with labour laws with self-inspiration without compromising with labourers’ health, safety and social security.
The scheme will be applicable to all factories, shops, commercial establishments and motor vehicle establishments except factories of hazardous and extremely hazardous nature. Inspection of industries covered under the scheme will be inspected once in 5 years and that too after giving advance information.
labour Minister Antar Singh Arya informed that any entrepreneur or employer is free to join or not to join the scheme anytime. Those joining the scheme will be exempted from surprise inspections under 16 labour laws and in place of 61 registers, one consolidated register will be maintained and only two returns will be filed instead of 13 annually. If an irregularity is found prosecution process will not be initiated and employer will be given time-limit for corrective actions.
Arya said that purpose of inspection is not punishment to employer, but giving him guidance and cooperation. The entrepreneurs complying with labour laws voluntarily will be spared the trouble of inspections for five years and prosecution.
Employers desiring to join the scheme will have to deposit amount of security deposit in favour of labour Commissioner Madhya Pradesh in the form of bank guarantee (valid for six years) or bank draft along with application at District labour Office or directly online to the office of labour Commissioner through public service centre. If concerning employer is not informed about any error in his application within 2 months, the application will deemed to be accepted automatically.
If the number of employees is up to 20, then the employer will have to make Rs 5,000 security deposit, 21 to 100 employees Rs 10,000, 101 to 300 employees Rs 25,000, 301 to 500 employees, Rs 40,000 and if number of employees is over 500, then the employer will have to make Rs 50,000 security deposit. The security deposit will be payable to labour Commissioner, Madhya Pradesh in the form of bank guarantee or demand draft. Security deposit will be deposited only once in five years.
Any entrepreneur or employer can quit the scheme anytime. Deduction of 20 per cent will be made from security deposit in case an employer leaves the scheme within a year, 40 per cent in two years, 60 per cent in three years, 80 per cent in four years and 100 per cent security deposit will be deducted if an employer or entrepreneur leaves the scheme in five years.