Govt. of Telangana revises the Computerized Risk Assessment based inspection in the State to consolidate inspection under various Labour Laws; move will facilitate Ease of Doing Business

With a view to promote conducive business environment, the Department for Promotion of Industry and Internal Trade (DPIIT) had recommended States to streamline their regulatory structures and create an investor-friendly business climate through its Business Reform Action Plan initiative. As per Recommendation 31 of the Business Reform Action Plan – Ease of Doing Business, the DPIIT had directed all State Governments and Union Territories to implement a computerized system for risk assessment.

In response to this recommendation and to facilitate Ease of Doing Business in the State, the Labour, Employment, Training and Factories Department, Telangana (Government of Telangana) in an Order dated 14th July, 2020 has revised the Computerized Risk Assessment based inspection under various Labour Laws in the State.

The Government of Telangana has implemented a Computerized Risk Assessment to carry out a single joint inspection under the following Labour Laws-
(i) The Payment of Wages Act, 1936 (Central Act 4 of 1936);
(ii) The Factories Act, 1948 (Central Act 63 of 1948);
(iii) The Minimum Wages Act, 1948 (Central Act 11 of 1948);
(iv) The Maternity Benefit Act, 1961 (Central Act 53 of 1961);
(v) The Motor Transport Workers Act, 1961 (Central Act 27 of 1961);
(vi) The Payment of Bonus Act, 1965 (Central Act 21 of 1965);
(vii) The Contract Labour (Regulation and Abolition) Act, 1970 (Central Act 37 of 1970);
(viii) The Payment of Gratuity Act, 1972 (Central Act 39 of 1972);
(ix) The Equal Remuneration Act, 1976 (Central Act 25 of 1976);
(x) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (Central Act 30 of 1979);
(xi) The Telangana Labour Welfare Fund Act, 1987 (Act No.34 of 1987)
(xii) The Telangana Shops & Establishment Act, 1988 (Act No.20 of 1988);
(xiii) The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (Central Act 27 of 1996).

Key Highlights of the Scheme:
1. The units will be categorized as Low Risk / Medium Risk / High Risk depending upon the number of workers employed. This will also determine the Cadre of the Inspecting Officer inspecting the unit.
2. The frequency of inspections for Establishments under Low Risk is once in 5 years, for Establishments under Medium Risk is once in 3 years and for Establishments under High Risk is once in 2 years.
3. The Schedule of Inspections will be determined through online inspection module. The establishments will be selected randomly and a computer generated notice will be issued to the establishments to provide 15 days clear time before inspection. The Inspecting Officer will be selected randomly through computerised online inspection module. The same Inspecting Officer will not inspect the same establishment twice consecutively.
4. The Inspection Report will be uploaded by the Inspecting Officer within 48 hours of the completion of the inspection. An alert will be sent to the employer, so that he may view/download the inspection report. In case of defects, the Employer will be required to take corrective action and upload compliance report within 15 days. The establishments will be able to view and download inspection reports of the past two years.
5. The Scheme has exempted certain establishments categorized as Low risk from compliance inspection along with Start-Ups for the first year of setting up upon submission of an online Self-declaration. (Refer to attached document for a detailed list of Exempted Establishments).


Source: Labour, Employment, Training and Factories Department, Government of Telangana

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