Voluntary Compliance Scheme for industries implemented
Bhopal: 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 Shri 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 2 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. Shri 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 5 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 6 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.
Security deposit
If the number of employees is upto 20, then the employer will have to make Rs. 5000 security deposit, 21 to 100 employees Rs. 10 thousand, 101 to 300 employees Rs. 25 thousand, 301 to 500 employee Rs. 40 thousand and if number of employees is over 500, then the employer will have to make Rs. 50 thousand 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 5 years.
Any entrepreneur or employer can quit the scheme anytime. Deduction of 20 percent will be made from security deposit in case an employer leaves the scheme within a year, 40 percent in 2 years, 60 percent in 3 years, 80 percent in 4 years and 100 percent security deposit will be deducted if an employer or entrepreneur leaves the scheme in 5 years.
Labour Minister said that security deposit will be confiscated if any accident takes place in any factory or establishment due to lack of proper compliance of labour and health safety provisions, scheme’s provisions, conditions or declaration is violated. Shri Arya said that security deposit of any employer or entrepreneur will not be confiscated without giving chance of hearing. The entrepreneurs and employers completing 5 years successfully under the scheme will have the option to get security deposit refunded or renew for next 5 years.
Application for joining the scheme along with declaration can be sent by single employer/proprietorship establishment – firm’s employer/proprietor himself, any partner of partnership firm or manager, authorised director or managing director of a company and manager of factory.
The employer joining the scheme will have to present annual return for every financial year between April 1 and 30 for calendar year between January 1 and 30. If return is not filed within time-limit, 15 days’ extra time will be given to entrepreneur through SMS, e-mail for written information.
