Employment policies India

8/8/2019 Employment policies India

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EMPLOYMENT

POLICIES OF INDIA


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INDEX

SR NO.

PARTICULARS PAGE

NO.

1 National Employment

policy-Introduction

2 Objectives

3 Basic Considerations

4 Policy Statements

5 Macro Economic Policies

6 Sectoral Policies

7 Labour Market Policies

8 Micro and Small

Enterprise

Development Policies9 Skill Development

Policies

10 Women Workers

11 Vulnerable Workers


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Vi l h h 3004

Ki j l Vora-3007

i ita Shah-3014

Gri h a Pat l-3015

Vi it Shah-3016

A hilash Pillai-3017

Sh tal Seth-3018

Mihir Shah-3019

Ki jal Patel-3020shan Sankhe-3021


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Programme would need to continue. T ere is indeed scope for suc

programmes to create productive employment rat er t an remain as fall -

back options, wit proper planning of works, tec nical support and

convergence of rural infrastructure works w erever feasible.

. T e role of State governments is critical in creating a facilitatingenvironment for accelerating t e growt of quality employment and

implementing t e policy in all its aspects.


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POLICY STATEMENTS

A multi-pronged strategy is necessary for ac ieving t e objectives of t e

national employment policy. Since t e basic objective is to create more

productive, sustainable and decent employment opportunities, economic growt

itself as to be more employment-intensive. T is would require not only t at

t e pattern of growt is oriented towards ig employment generating sectors,

but also t at in eac sector and subsector, policy instruments t at

tend to favor more employment-intensive product pattern and

tec nologies, are devised. At t e same time, policies t at are likely to inder

expansion of employment and encourage insecure and exploitative conditions of

work need to be reviewed and c anged.

Also, measures need to be adopted to improve employability of labor force in

t e dynamically c anging economic landscape. T e social dimensions of

employment in terms of special needs and treatment of women and

disadvantaged groups as to be an underlying consideration in all aspects of

employment policy.

Policy statements in t is document are accordingly arranged under t e

following seven major eads:

(i) Macro-economic Policies

(ii) Sectoral Policies

(iii) Labour Market Policies

(iv) Micro and Small Enterprise Development Policies

(v) Skill Development Policies

(vi) Women Workers

(vii) Vulnerable Workers


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TRADE POLICY

1. It is noted t at employment is considered as an objective of trade policy.

Mec anisms need to be devised to effectively relate various policy instrumentsto employment outcomes.

. Export incentives suc as duty draw back and tax exemptions/

concessions s ould be directly linked wit employment.

. Duty and incentive structure of imports and exports s ould be

reviewed to remove any features t at discourage employment

generation and revised to become more employment-friendly. For example,

any instances of inverted duty structure, w ic tend to be counterproductive to

employment generation, need to be removed.

. Concessions given to units in Special Economic Zones (SEZs),

s ould also be linked wit employment, eit er as an over riding or additional

criterion.


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SEC AL L C ES

IDEN IFICA ION OF SEC ORS

As noted earlier, itis essentialthat sectors and sub-sectors withhi h

employment potential are identi ied and besides getting priority in growth

strategy, sector-speci ic policies need to be evolved fortheir faster growth and

greater employment orientation.

While this exercise needs to be carried outin detail atthe sub-sectoral

level, sectors that can easily be identified for specialtreatment from

employment viewpoint are agriculture, manufacturing, construction, 8retail

trade, tourism and information and communication technologies (IC .

Recent experience has demonstrated that some of these sectors have

considerable potential for faster employment growth while others needstrengthening of their growth process to improve quality of employment.


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A sub-sectoral approac to policy-making is necessary to improve

employment intensity of manufacturing. Labour -intensive industries (e.g.

textile products, leat er products, beverages, food products and wood products)

need to be given special policy support and incentives to grow faster, including

for sale in external markets.W ile dereservation may be necessary and desirable in t e present

context, t e small scale sector needs to be compensated by adequate policy

support in ot er sp eres (e.g. Credit, marketing) in order to sustain its

growt and perform its important role in employment generation.

Labour-intensive sectors, particularly t e micro and small

enterprises, need to be provided strong tec nology and skill support t roug a

package of extension services and training worked out to particularly suit t eir

requirements.

Special package of support s ould be developed for small, multi-product

clusters in backward areas particularly utilizing t e forward and backward

linkages t at could be locally realized .

CONSTRUCTION

T e construction sector as registered ig employment growt as wellas ig employment elasticity. W ile t ese features of t is sector are

likely to continue, poor quality of employment is a matter of serious concern.Implementation of various provisions of labour regulation , minimum wages,

safety and welfare, need to be strictly implemented. T e government effortsneed to be supplemented by t ose from t e trade unions and civil societytowards t is end.

Efforts s ould be made to explore alternative to t e contractorsystem for recruitment. Strengt ening of t e existing labour marketinformation system is necessary for t is purpose.

A special programme for development of skills to meet t e

requirements of c anging tec nology in t e construction sector needs to bedeveloped. A few public and private sector initiatives already on ground couldbe emulated on an expanded scale for t is purpose.


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RETAIL TRADE

T e Trade sector as experienced one of t e fastest growt s

in employment over t e past decade; and is likely to sustain t is growt in

coming years. T e need particularly seems to be of improving quality of

employment, especially in retail trade.

For t e very small, self-employed retail traders, like t e street s ops and

vendors, policies need to guarantee t eir rig ts to space and

liveli ood. Implementation of National Policy for Hawkers, Street Vendors

and small s opkeepers s ould receive urgent attention.

T e question of FDI in retail trade s ould be considered only after careful

examination of its impact on business of small traders and employment.

A national regulatory mec anism may be constituted to ensure

fairness of competition and sustenance of small traders and vendors, as well as

to ensure good conditions of work in t e retail stores.

TOURISM

Tourism industry as grown rapidly and so as employment in t is sector.

Inadequate infrastructure and s ortage of skilled workforce are identified as

major constraints in furt er acceleration of its growt . T e Elevent Plan

as made several suggestions to reduce t ese constraints, by adoptingdestination and circuit focused planning of infrastructure and public

private partners ip (PPP) in creating training facilities, w ic need to be

expediously implemented.

Tourism projects t at integrate local socio-economic development,

t roug forward and backward linkages, s ould be especially

encouraged. A package of incentives, fiscal, financial and ot ers s ould

be developed for t is purpose.

Capacity for training tourism personnel at different levels needs to bevastly expanded. Special emp asis s ould be given to build training

capabilities at local level t roug w at may be called a Capacity

Building for Service Providers (CBSP) programmed.


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OTHERS

C aracteristics and experiences of ot er sectors and sub -sectors (e.g. IT

and ITE Services) need to be analyzed and policy measures t at would elp in

improving t e growt and quality of employment in t eir respective sp ere,

need to be identified.


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LABOUR MARKET POLICIES

Labour market policies aim at either regulating employmentto ensure

safety, fairness and equity at work; or at promoting employment

either by directly creating work or facilitating employment creation by

providing information, training and placement services.

LABOUR REGULATION

Labour regulation in India is seen, on the one hand, as providing

excessive protection, to a small segment of workforce in the

organi ed sector, and, on the other, leaving the overwhelming

majority ofthose in the unorgani ed sector, completely unprotected, either

because of the non-applicability of regulatory provisions, or because of

ineffective implementation of provisions that apply to them. The

regulatory regime in respect of labour requires to be closely examinedwith a view to devising ways to minimi e this dualism.

Part ofthe reason forineffectiveness and non-compliance oflabour

regulations and frictions and disharmony arising out ofthem lies in the

confusion created by multiplicity oflaws, definitions of concepts and categories

and administrativejurisdictions. Labourlaws need to 12 be codified,


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definition, scope and coverage harmoni ed and administrative spheres are

clearly demarcated.

Such of the provisions of laws that render adjustment of workforce

inflexible, and thus adversely affect efficiency of production, on the one hand,

and the employers willingness to employ more workers, on the other, need to

be modified, with due regard to the reasonable compensation to the affected

workers.

While compliance of the provisions of social security, where such

provisions exist, must be ensured by improving the efficiency ofthe existing

mechanisms or adopting alternative ones, a minimum measure of social

security must be available on a statutory basis to the hitherto unprotected

workers.

ACTIVE LABOUR MARKET POLICIES

Special employment programmes have been in operation for severaldecades now. Their effectiveness has varied. Those of self-

employment variety have helped most ofthose assisted to increase their

incomes and some to cross the poverty line. Wage-employment programmes

have met part ofthe employment gap and supplemented participants income to

a certain extent. Allthe ongoing programmes need to be critically reviewed

with a view not only to improving their effectiveness butto see ifthey could be


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replaced by just one-or two programmes wit clear objectives and effective

implementation.

Introduction of NRE P, as t e single and statutorily backed wage-

employment programme in all rural a reas of t e country as been a welcome

and important step as a purposeful and focused active labour market policy.W ile its contribution to provide supplementary employment, as a rig t,

and, t erefore, an assured income to rural ouse olds is beyond any doubt,

ways need to be found to utilize it for creating conditions for sustainable

employment and all round rural development. Improving capabilities of local

democratic institutions and suitable c anges in administrative and financial

procedures would be necessary to establis effective and purposeful linkages

between t e sectoral programmes/projects and NRE P, for t is purpose.

SKILL DEVELOPMENT

Organizing a system of training for development of skills required for

securing suitable employment is anot er important component of t e active

labour market policy. rowing mismatc between supply and demand of

skills and inability of t e existing skill development system to meet t e

demands of a dynamically c anging labour market as been frequently

ig lig ted. Nature and magnitude of t e problem and recommendations

for its possible solution ave been given in a subsequent Section.

LABOUR MARKET INFORMATION

In a situation of rapidly c anging production structure and

tec nology, particularly in t e wake of globalization, t e nature and

composition of demand for labour is also c anging dynamically, even in a

single location, industry and enterprise. Labour market information

service assumes special importance in t is context. At present, Labour

Market Information Service is provided by Employment Exc anges,

w ic play t e very limited role of registering job seekers andnotifying candidates to prospective employers. T ese agencies need to be

restructured to be able to provide complete information on job market,

vocational guidance and active elp in placement.

Employment exc anges instead of being passive recipients and

suppliers on demand of t e information provided by clients, s ould play


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State governments will be encouraged to come up wit policy

responses on micro and small enterprises and strengt en t e state level

departments and agencies and to exc ange experiences for learning from eac

ot er, wit special focus on ome based workers, t e majority of w ic

are women.

A compre ensive review of t e functioning of t e District Industries

Centres (DIC) will be taken up wit a view to strengt en t eir capacity and

orient t em more as Counseling Centres, resource and convergence

centres, and one-stop s ops for micro and small enterprises t roug

preparation of projects, skill development, periodic disaggregated data

collection and dissemination of information.

ORGANISATION OF INDUSTRY AND WORKERS

Recognising t e role of MSE associations in policy formulation,

advocacy, dissemination of information, steps will be taken to form suc

associations in places wit out suc associations and strengt en t eir capacity

of t e existing ones.

Recognising t at workers organisations in t e MSE sector are few and

need strengt ening, it will be t e endeavor of t e Government to encourage

formation of workers organizations t at will en ance t eir ability to secure

basic conditions of work (e.g. toilets, drinking water, eating facilities),

minimum wages, social protection, voice and representation, social

mobilization/awareness generation, skill training and access to ousing.

T e formation of Workers Facilitation Centres for suc purposes as

registration and servicing of social security will be encouraged.


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SKILL DEVELOPMENT

Recognizing t e enormous deficit in basic education and formally

acquired skills by t e working people, skill development will be recognized as

an important component of active labour market policies of t e

government.

MATCHING TRAINING WITH DEMAND

Labour market information systems will be set up adequately to

annually assess t e labour market requirements, identify labour -

intensive ig -growt sectors, so t at skills development can be

planned and delivered accordingly to meet t e demands.

T e focus on skill training and development will fall on t e informal orunorganized sector of t e workforce. Appropriate programmes and sc emes

will be developed (some are already underway, suc as t e Skills Development

Initiative) and introduced t roug out t e country to meet t e requirements of

suc workers.

Recognizing t e inadequacy of institutional capacity in t e

public sector in training of trainers, policies and programmes will be

introduced for t e participation of t e private sector as well as t e non-profit

sector suc as cooperatives, NGOs and p ilant rop ic institutions.

To encourage acquisition of formal skill training by socially

disadvantaged groups (e.g. SCs/STs) special packages will be

introduced to provide sc olars ips, ostel facilities and tool kits.

STANDARDS AND CERTIFICATION

T e employability of trainees must be made t e main focus of all

future training efforts, including components suc as curriculum

development, training delivery, certification etc.

A system of independent certification for candidates passing t roug skill

training as well as trainers will be instituted wit appropriate 18standards.

T is will be done at t e national and state levels by designating

competent institutions in public, private and non-profit sectors. A system of


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accreditation along t e lines adopted by t e University Grants

Commission (in respect of institutions of ig er education) will be

introduced.

Greater involvement of industry in various initiatives mentioned above is

crucial. To ensure greater involvement and interaction, existing and successfulmodels will be assessed and t eir replication wit appropriate

adaptations will be taken up. Linkage wit Education System and ot er

programmes

From a long term point of view, skill training as to come t roug

vocational education. Given t e limited capacity of existing

institutions, government will en ance t e seating capacity (in public, private

and non-profit sectors) by creating new institutions and offering

vocational education as an option at t e ig sc ool level of Class.

Special focus will be given to rural areas and to yout from

disadvantaged social groups.

Given t e fact t at a majority of t e workforce as an educational level

of less t an years (including illiterates), functional literacy programmes

will be strengt ened and extended. T is will be done on t e basis of a review of

t e ac ievements of t e National Literacy Mission as well as t e literacy

campaigns carried out by civil society organizations.

Skill training and development will be made an important component of

public programmes and sc emes especially t ose focused on a large number of

beneficiaries suc as t e National Rural EmploymentGuarantee

Programme, National Rural Healt Mission, Sarva S iks a A b iyan, ICDS

and Mid-Day Meal Programme. T is will give considerable advantage to

women in rural areas as t ese activities are mostly, if not only, suited to t em

and predominantly spread over t e villages in t e country .


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IDENTIFYING SECTORS

Sectors w ere womens participation is significant will be identified for

specific focus as, for example, in agriculture, food processing, fis ing,

plantations, forestry, orticulture, export intensive manufacturing, tourism

and care services wit a view to introduce tec nology t at are drudgery

reducing and/or labour augmenting t ereby creating conditions for

employment generation, a decent work and ig er productivity.

Policies and programmes for skill training and development for

women will ave a specific component of entrepreneurs ip

development for women- eaded micro and small enterprises.

FACILITATING STRUCTURES

Special institutional mec anisms will be created to cater to womens

employment, suc as information centres and organizational structures.

To promote decent employment in emerging sectors and activities.

Special facilities (in t e form of committees) will be establis ed in

clusters and large enterprises to ensure t at basic conditions of work wit

dignity are provided for women workers and t at no discriminatory

practices are allowed. T ese relate to (i) sanitary, drinking water,

eating and c ild care facil ities, (ii) ensure t e payment of minimum wages

w erever applicable, (iii) enforcement of safety standards and (iv)

representation of women in collective bodies of workers.

A specific area in w ic women ave responded in large numbers arising

out of economic compulsions is t eir ig level of participation in t e National

Rural Employment Guarantee Programme (NREGP). It will also be t e

Endeavour of t e government to ensure t at wage payments are carried out in a

timely and transparent manner and create suc systems (like Post Office or

Bank Savings Accounts) t at will bot ensure timely and full payment and

empower t em in t e long run in dealing wit modern financial institutions.

Special attention will be given to t e educational and skill training

requirements of women workers t ereby addressing, inter alia, t e

perceived bias against women workers in t e labour market


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ORGANISATION AND EMPOWERMENT

Given t e greater deficit in organization and representation of women

workers, especially in t e informal economy, special programmes and enabling

conditions will be created for organizing informal women workers and

strengt ening t eir collective capacity.

T e Self Help Groups of women ave emerged as an innovative form of

organization for accessing credit, marketing as well as ot er services.

W ile encouraging t e spread of t is organizational form to areas w ere it is

currently eit er absent or low presence, policies will be put in place to ensure

t at micro credit graduates from consumption smoot ening to liveli ood credit

t at will ave a focus on t e creation of productive employment wit backward -

forward linkages.


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VULNERABLE WORKERS

In an economy where an overwhelming proportion of workers are in the

informal sector whose defining characteristics is low productivity,

small si e of enterprises and absence of job and/or social security to

workers, vulnerability should be reckoned as all pervasive. However, there are

specific segments of workers who are at a distinct disadvantage arising out of

theirhelpless nests in terms oflocal distress, distress induced migrants, working

children, workers with physical challenges orthose in bondage like conditions.

MIGRANT WORKERS

Effective enforcement ofthe Inter-State Migrants Act of19xx will beensured to regulate the recruitment as well as terms and conditions of work.

The state governments will ensure that migrant workers have access to

basic amenities such as shelter, drinking water and sanitation, health care

and access to schooling forthe children. In addition, it will also ensure,

through appropriate legislation that the social security scheme for workers

in the unorgani ed sector are also made available to the migrant workers.


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CHILD LABOUR

STATE DISTRICTS SANCTIONED

SCHOOLS

COVERAGE

CHILDREN

ACTUAL

SCHOOLS

COVERAGE

CHILDREN

AndhraPradesh

20 807 43550 610 36249

Bihar 08 174 12200 173 10094

Gujarat 02 040 2000 023 1254

Karnataka 03 100 5000 024 1200

MadhyaPradesh

05 138 9800 087 6524

Maharashtra 02 074 3700 024 1200

Orissa 16 430 33000 239 14972Rajasthan 02 060 3000 054 2700

Tamil Nadu 08 379 19500 307 14684

UttarPradesh

04 150 11500 105 7488

WestBengal

04 219 12000 164 8250

Total 76 2571 155250 1810 104615


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STATE-WISE PROJECTS UNDER IPEC AND NUMBER OF CHILDREN

COVERED (92-97)

Tackling c ild labour (w ic is declining) calls for policies and

programmes to improve t e liveli ood security of poor families to w ic t ey

belong. Provision of gainful employment especially during lean

seasons, better enforcement of minimum wages of adult workers,

STATE PROJECTS

APPROVED

NO. OF

CHILDREN

AndhraPradesh

15 15455

Bihar 3 1340

Delhi 6 4200

Gujarat 5 1350

Haryana 1 300

Karnataka 2 1320Kerala 2 2000

MadhyaPradesh

6 2050

Manipur 1 500

Maharashtra 7 1750

Orissa 4 1500

Rajasthan 7 5800

Tamil Nadu 17 6710

UttarPradesh

11 13939

WestBengal

19 22890

Regional 2 NA

All India

Institutions

11 NA

Total 120 81154


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provision of basic social security and contingent social security will be

strengt ened. In addition, c ild-centered programmes suc as ICDS and Mid-

Day Meals in sc ools will be extended to cover t e w ole country and

steps taken to en ance t eir effectiveness.

An area requiring special focus is to strengt en access to sc ooling

especially in rural areas. T e augmented programme of Sarva

S iks a A b iyan is expected to ensure universal enrolment of

c ildren in sc ools. Special sc emes will be introduced to states t at account for

an overw elming proportion of c ildren out of sc ool.

State governments and local self governments will be encouraged and

incentivized to ensure provision of quality education. T e family -

centric and convergence-based c ild labour approac will be promoted t roug

policy and sc emes, particularly at t e district levels. Special sc emes will beintroduced for states t at account for an overw elming proportion of c ildren

out of sc ool. Regionally focused policies and programmes will t erefore get

special attention.


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World Banksees NREGA as a barrier toeconomic

development

NEW DELHI: T e World Bank as described t e muc -acclaimed National

Rural Employment Guarantee (NREGA) sc eme of t e UPA government as a

policy

barrier urting economic development and poverty alleviation.

Various sc emes of t e Indian government like NREGA, waters ed programmes

and sc emes for development of small and medium towns are acting as "policy barriers to internal mobility", t e bank said in its 'World Development Report'

.

T e internal mobility, t e report argued, is necessary as "lifting people out of

poverty requires s ifting populations from villages to cities". T e process of

migration s ould be encouraged, t e bank said.

"Negative attitudes eld by (t e) government and ignorance of t e benefits of

population mobility ave caused migration to be overlooked as a force ineconomic development," it said.

T e report said economic benefits of migration are not always recognised by

policy makers and, in fact, two forms of policy ave been attempted in India to

counter migration.

"T e first response as been to increase rural employment, in an attempt to stem

movement out of rural areas ... T ese measures include t e recently introduced

National Rural EmploymentGuarantee Programme," it said.

T e World Bank cited ot er programmes suc as waters ed development to

improve agricultural productivity and development of small and medium towns,


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w ic t e Indian government as taken up to reduce migration.

"T e second policy response is implicit. Because of t e perceived negative

effects, local governments remain ostile toward migrants, w ile employers

routinely disregard laws to protect t eir rig ts and needs," t e report said.

In many cases, welfare policies and social services are designed for a sedentary

population, t e bank

"T is is best exemplified by location-specific entitlements to social services,

ousing subsidies, food rations, and ot er public amenities especially important

to working poor people," it said.

T e report, w ic recommends concentration of production an d mobility of people, said, "Current policies do not allow communities to fully capture t e

benefits of labour mobility."


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Under t e sc eme, anyone willing to avail t e benefits as to register wit t e

local gram panc ayat, w ic in turn issues a job card. If employment is not

provided wit in 15 days of receipt of t e job card, t e applicant is entitled to an

unemployment allowance.

T e sc eme, initially started in 00 districts in February 006, was later

expanded to 130 more districts t is year.


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IMPLEMENTATION AND MONITORING

National Employment Policy is to be implemented by different

ministries, bodies and agencies of t e government, bot at t e Centre and in

t e states. It is, t erefore, essential t at an institutional mec anism is

developed to ensure t at employment is mainstreamed in growt strategies,

macro-economic and sectoral policies and to monitor results of policy

initiatives. Implementation of employment policy involves several stages.

To begin wit increasing t e employment-intensity of economic growt

requires identification of sectors t at are more employment -friendly and

pursue policies and programmes conducive to t eir growt . Identification of

suc sectors and sub-sectors could be based on an analysis of t e

employment impact of growt of suc sectors. It will need to be ensured t at all

major projects and t eir associated investment decisions take into

consideration t e employment aspect. Assessments need to be made of t e

extent of benefits derived from capital subsidies of various kinds and

alternative types of labour subsidies (for instance subsidies promoting

employment intensive tec nologies) need to be evaluated.

In order to oversee and carry out suc assessments t ere must be an

institutional mec anism establis ed, t at is suitably empowered.

Adequate uman and financial resources s ould be dedicated to

carrying out suc exercises wit in t e budgetary allocation. Periodic

monitoring and evaluation, as relevant, needs to be done on a regular basis.

For undertaking t e tasks of assessment and monitoring effectively, it is

necessary to identify t e nature and details of t e required data and arrange

t eir collection and collation at regular intervals. It appears t at for

carrying out a meaningful Employment Audits t e present data collection

systems need to be muc improved.

Specifically,

A system of Employment Impact Assessment needs to be developed

and made a pre-condition of all major macro economic policy initiatives.


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A c eck list s ould be provided to different ministries and

macroeconomic policy-making institutions to ensure t at basic

employment issues are taken into consideration.

A suitably empowered institutional mec anism needs to be

constituted to oversee employment outcomes of macro economic and sectoralpolicies.

Data systems and monitoring mec anisms need to be

created/improved-it may, for example, be necessary to ave annual rounds

of t e ouse old NSSO Employment and Unemployment surveys, and to

improve coverage of employment in data collected and collated by

organizations like t e ASI and DGET.


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