Voluntary compliance scheme

Only one registers instead of 61 for entrepreneurs in MP

Bhopal, September 20, 2015 (Abdul Ahad Farhan):  Special efforts have been made to simplify labour laws and processes by Labour Department during last one and half years. Voluntary compliance scheme of the state government has been lauded by the Centre and other states also. Under the scheme, 16 labour laws have been simplified and provision has been made to maintain only register instead of 61 registers. Besides, employers have to file only 2 returns instead of 13. As many as 10 lakh employers are benefiting from voluntary compliance scheme. Started from October 2014, this scheme is applicable to all factories (except highly hazardous), shops and commercial establishments. Establishments have been spared from frequent inspections. Now industries covered under the scheme will be inspected once in 5 years and that too after giving advance information. No fee is charged from employers willing to join the scheme.

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.

Application for joining the scheme along with declaration can be submitted both online and offline. It is voluntary for employers to join or leave the scheme anytime. Applications and declarations can be submitted 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.