Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Parliament passes Payment of Gratuity Bill

Note4students

Mains Paper 2: Polity | Parliament & State Legislatures – structure, functioning, conduct of business, powers & privileges & issues arising out of these

From UPSC perspective, the following things are important:

Prelims level: Payment of Gratuity (Amendment) Bill, Maternity Benefit (Amendment) Act, 2017

Mains level: Labour law reforms and their effects


Payment of Gratuity (Amendment) Bill passed

  1. Parliament passed a key bill that will empower the government to fix the amount of tax-free gratuity and the period of maternity leave with an executive order
  2. The legislation will enable the government to enhance the ceiling of tax-free gratuity to Rs. 20 lakh from the existing Rs. 10 lakh for employees falling under the Payment of Gratuity Act

Other benefits

  1. The bill also allows the government to fix the period of maternity leave for female employees as deemed to be in continuous service in place of the existing 12 weeks
  2. The amendment comes in the backdrop of Maternity Benefit (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks
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