Labour and employment secretary Vandana Gurnani urged the Global Capability Centers (GCCs) to actively participate in the Employment Linked Incentive ( ELI) scheme of the government, saying it holds substantial potential for job creation and will benefit both the employer and the employees.
“There are very substantive benefits available, not just to employees, but to employers,” she said, expressing hope that the new scheme, which comes into effect from August 1, takes off in a big way and does not meet the same fate as the PM Internship Scheme with respect to GCCs.
“From the employer perspective, it will reduce the marginal cost of hiring,” Gurnani said while speaking at the GCC Business Summit, organized by the Confederation of Indian Industry (CII) on Monday.
Citing the success of similar initiatives in Singapore, Malaysia, Australia, Germany and Turkey, she said, it has led to sustained employment, and also led to wage increase.
Elaborating on the scheme process, Gurnani assured that the scheme design is very simple and there are no elaborate registration processes involved.
“Many times employers find the process for availing benefits very elaborate. This is not the case. It's a very, very simply designed scheme with very simple processes,” she said.
On Labour Reforms
Gurnani said the ministry has codified 29 labour laws into four Labour Codes, which are very simple and have uniform definitions. There is drastic rationalisation of the number of compliances, the number of returns to be filed, the number of licenses needed and reduction in punishments in case of non compliance, she said.
“However, since these Labor Codes are still to come into effect, an attempt is on currently to work with the state governments to make sure that some of the critical labor compliances, which have a bearing on the industry, can be rationalized,” she said.
“While the Codes are yet to come into effect, the action has shifted to the states, and when states are making these reforms in the Acts and rules, we, from the national level are supporting it to make sure that they go through,” she added.
“There are very substantive benefits available, not just to employees, but to employers,” she said, expressing hope that the new scheme, which comes into effect from August 1, takes off in a big way and does not meet the same fate as the PM Internship Scheme with respect to GCCs.
“From the employer perspective, it will reduce the marginal cost of hiring,” Gurnani said while speaking at the GCC Business Summit, organized by the Confederation of Indian Industry (CII) on Monday.
Citing the success of similar initiatives in Singapore, Malaysia, Australia, Germany and Turkey, she said, it has led to sustained employment, and also led to wage increase.
Elaborating on the scheme process, Gurnani assured that the scheme design is very simple and there are no elaborate registration processes involved.
“Many times employers find the process for availing benefits very elaborate. This is not the case. It's a very, very simply designed scheme with very simple processes,” she said.
On Labour Reforms
Gurnani said the ministry has codified 29 labour laws into four Labour Codes, which are very simple and have uniform definitions. There is drastic rationalisation of the number of compliances, the number of returns to be filed, the number of licenses needed and reduction in punishments in case of non compliance, she said.
“However, since these Labor Codes are still to come into effect, an attempt is on currently to work with the state governments to make sure that some of the critical labor compliances, which have a bearing on the industry, can be rationalized,” she said.
“While the Codes are yet to come into effect, the action has shifted to the states, and when states are making these reforms in the Acts and rules, we, from the national level are supporting it to make sure that they go through,” she added.
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