A change in the Contract Labour (Regulation and Abolition) Act, 1970 may be in the pipeline.  According to news reports, the government may amend the 1970 Act to safeguard the interest of contract workers.  The proposal is to bring parity between permanent and contractual workers in wages and other benefits. The Contract Labour Act, 1970 regulates the employment of contract labour in establishments which employ 20 or more workmen.  It excludes any establishment whose work is intermittent or casual in nature.  The appropriate government may require establishments to provide canteens, rest rooms and first aid facilities to contract labourers.  The contractor shall be responsible for payment of wages to each worker employed by him.  There are penalties listed for contravening the Act. According to the Report of the National Commission on Enterprises in the Unorganised Sector (NCEUS), more than 90% of the workforce is part of the unorganised sector.  Contract labour is found in certain activities in the unorganized sector such as in stone quarrying, beedi rolling, rice shelling and brick kiln.  The Commission recommended some measures to protect the workers in the unorganized sector such as ensuring minimum conditions of work, minimum level of social security and improved credit flow to the non-agricultural sector. The Report of the Working Group on “Labour Laws and other Regulations” for the 12th Five Year Plan, also proposed that the 1970 Act should be amended.  The amendment should ensure that in case of contract labour performing work similar to that performed by permanent workers, they should be entitled to the same wage rates, holidays, hours of work and social security provisions.  Furthermore, whenever a contract worker is engaged through a contractor, the contract agreement between the employer and the contractor should clearly indicate the wages and other benefits to be paid by the contractor. However, other experts such as Bibek Debroy, Kaushik Basu and Rajeev Dehejia have recommended broad reforms in India’s labour laws to allow for more flexibility in the labour market.  According to them, these laws protect only a small portion of workers in the organized sector.

Earlier today, a Bill to raise maternity benefits was introduced and passed in Rajya Sabha.  The Bill amends the Maternity Benefit Act, 1961.  The Act regulates the employment of women during the period of child birth, and provides maternity benefits.  The Act applies to factory, mines, plantations, shops and other establishments.

Duration of maternity leave: The Act states that every woman will be entitled to maternity benefit of 12 weeks.  The Bill increases this to 26 weeks.  Further, under the Act, this maternity benefit should not be availed before six weeks from the date of expected delivery.  The Bill changes this to eight weeks. In case of a woman who has two or more children, the maternity benefit will continue to be 12 weeks, which cannot be availed before six weeks from the date of the expected delivery.

Maternity leave for adoptive and commissioning mothers: Further, the Bill introduces a provision to grant 12 weeks of maternity leave to: (i) a woman who legally adopts a child below three months of age; and (ii) a commissioning mother.  A commissioning mother is defined as a biological mother who uses her egg to create an embryo implanted in another woman.  The 12-week period of maternity benefit will be calculated from the date the child is handed over to the adoptive or commissioning mother.

Informing women employees of the right to maternity leave: The Bill introduces a provision which requires every establishment to intimate a woman at the time of her appointment of the maternity benefits available to her.  Such communication must be in writing and electronically.

Option to work from home: The Bill introduces a provision that states that an employer may permit a woman to work from home.  This would apply if the nature of work assigned to the woman permits her to work from home.  This option can be availed of, after the period of maternity leave, for a duration that is mutually decided by the employer and the woman.

Crèche facilities: The Bill introduces a provision which requires every establishment with 50 or more employees to provide crèche facilities within a prescribed distance.  The woman will be allowed four visits to the crèche in a day.  This will include her interval for rest. Various countries provide maternity leave.  However, the duration of leave varies across different countries.[i]  We present a comparison of maternity leave available in different countries, as on 2014, below.

Sources: International Labour Organisation Report (2014); PRS.   [i]. “Maternity and Paternity at work: Legislation across countries”, International Labour Organisation Report (2014), http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_242615.pdf.