Bigger the industry, lower the compliance with laws

Panaji: While relaxing norms for inspection of industrial units in the state, the department of labour & employment has noted that industries with over 100 employees showed a greater tendency to violate labour norms and exploit employees.

Inspectors from the labour and employment will continue to closely monitor firms and establishments where workers are at a higher risk of being exploited, but has permitted "medium and low-risk establishments" to go in for self-certification.

"Experience of the department indicates that larger the establishment, lower has been the compliance," undersecretary for labour, Georgina Saldanha, said. "Low-risk establishments have been exempted from inspection subject to the condition that the establishment will submit a self-certification every year."

The department has clarified that labour inspectors would conduct random inspections with prior approval from the labour commissioner if complaints were received against those units which were exempted from inspection or those that went in for third-party verification.

The reforms are part of the recommendations proposed by the department of industrial policy and promotion as part of the Business Reform Action Plan for 2017. The department of labour and employment has also attempted "to bring in more transparency in the existing system of inspections."

According to the department of labour and employment, industrial units identified as medium risk can also benefit as they will have the option to choose between departmental inspection and third-party inspection.

While notifying the above reforms, the department has noted with concern that the growing trend of contractual employment created scope for exploitation of workers.

"There are certain establishments employing large number of contract workers and in some cases number of contract workers exceeds the number of regular workers," the department said in its findings.

"In such establishments the terms and conditions of employment of regular workers and contract workers are totally different and it is observed that in several such cases contract workers are prone to exploitation."

Establishments employing above 100 workers or industrial units where the total number of contract workers exceeds 25% of the total employed workers were more likely to skirt labour norms and attempt to exploit workers, department officials said.

Hotels, restaurants, pharmaceuticals, steel, chemical industries, automobile service centres and construction companies are identified as high-risk firms.