In continuation of its policy to ease labour laws, the government has amended a clause in Mines Act to provide more flexibility to oil companies in deploying workers ?on and off? oil blocks.
Rigidity in the labour laws as stipulated in the Mines Act has prevented oil companies to scale up output by engaging workers for more than a week. The Mines Act stipulates daily maximum work of 8 hours in underground and 9 hours on surface, compulsory weekly day of rest and maximum 48 hours of work a week.
In a notification, the labour ministry said the workers in oil and gas sector will now be exempt from the some provisions of Mines Act subject to certain conditions such as a person can?t be deployed for more than 12 hours in any day or 21 days at a stretch even with a grant of rest for an equivalent number of days. Also, the person deployed for 21 days at a stretch has to be provided with free boarding and lodging, transport and medical and other recreation facilities.
The allowances for such workers in oil and gas sector cannot be less than the extra wages or overtime payable to other mine workers even if the worker is on contract. The flexible pattern of work can be adopted only after a written agreement between the worker and the employer.
India has over 1 million workers in the mining and oil sectors, which contribute close to 3% to the national GDP. The first Indian Mines Act was enacted in 1901, which was subsequently amended several times. Still, there was demand for further relaxation for the oil and gas sector especially offshore blocks.