Feasibility of labour law in applying in SME and Microscale enterprise
SME and Microscale enterprises contribute to the major source of job creation and which also facilitate the economic growth of the country. Most governments are promoting and supporting by subsidiaries to SME and ME sectors. However, the sectors have to comply with labour law and regulations. Because in the SME and ME sectors are providing the poor working environments and safety precautions are comparatively lower than standard government recommendation.
Source; google images
The SME and ME sectors are becoming the big challenge to maintaining the regulations and law amendments because the sector mostly prefers to maximise the profits by lowering the overhead costs. The employee wages are lower and working hours longer than for working in larger enterprises. Further, some employments unit workers are not having full-time or typical work contracts, so they are excluding from common labour laws.
For example, the coir industry is the upcoming small-medium enterprise in Sri Lanka, The coconut plantation is one of the major Agri Economy of Sri Lanka. So, the coconut husks are transformed and produced into doormats, coir mattress, brushes and coco peats. The coco peat expands its demand to the international export market. Sri Lanka has given a significant contribution to internationally balancing the cocopeat demand.(source; Sri Lanka Export Development Board)
The production circle starts collecting the coconut husks, this has mainly done by contract workers supplying raw materials to the industry. These workers not have comes under the labour rules. Thereafter, husks are standardised and filtered to make as small pieces and compressed for export. So, the production unit labours only have calculated as the labour market of SME and ME.
But, this coir industry barriers production in the monsoon of Sri Lanka. The industry might stop production until the rain was stopped, then labours will be unemployed and wages also stopped. The labour law is performing to safeguard the employees from an uncertain situation. However, the industry will suffer to pay wages until re-start the production progress.
At the same time, the SME and ME are discriminate in employees their nature of working conditions, the wages and benefits are provided invariance in employee to employee. The labour law says discrimination in employment has to be defused. So, labour law has to regulate the environment for SME that promote decent work which also facilitates economic growth.
So, the labour department and INGOs' making regular visits and confirms the safety of employees and ensure the post-employment benefits such as medical checkups, holidays and overtime payments. Labour regulation should pursue three inter-related and mutually reinforcing objectives: promoting human capabilities, improving job quality, and encouraging formalization of SMEs Colin et al, (2007).
Most of SMEs are gives a recent startup the projection, So, the sector is lack of available sources and fundamental rights of its employees such as minimum wages, timely payoff, occupational health and safety standards, discrimination and child labour Colin et al, (2007).
The sector is targeting the female labours to their employees because the male labours are requests the higher wages than female labours and managing and handling are conveniences than the male. At the same time, the child labours are directly or indirectly cannot be avoidable in this sector. Some female labours bring their child to the workplace for purposely to get additional income by them. The consideration of labour law in SME is low and difficult to educate the labours. The human resource management is laking of its function in the SME sector because most business owners pr overall managers handle the labours and employee needs Armstrong, (2014).
In SME, health and safety precautions methods are maintaining lower standards, So, the labours forecast the health issues and worksite accidents are moderately high. As responsible authority for labour issues, the labour department of Sri Lanka visits over the sector and give them a field report advice and forward to state engineer guidance. The amendment of guidance is in respective SME business owners hand.
The SME sector mostly depends on manual labours, machinery usage and high technology is comparably low. So, the high manpower is used for sector productions, but paying low wages and timely payments are not considered as important by SME business owners.
In Sri Lanka, labours and their rights are coming under the Labour Board, mainly their wages are calculated are differed by sectors. But specifically not all the labours having adequate knowledge of labour law, labours are works to elevate the poverty and survive their lives. However, as a human being, the sector should understand the labour problems and enhance them by amending the labour law and regulations in a proper manner. The government is unable to impose the heavy rules to this sector because of fear of exiting sector and unemployment and poverty level will be raised to uncontrollable manner. So, the government has a soft handling SME sector and funding and giving subsidies to enhance the sector with proper guidance.
Thank you
Reference
1. Armsrtong, M. (2014). Armstrong’s handbook of human management practice. p.11.
2. Colin.F, John. H, Shelly.M, and Ingrid.L. (2007). Series on Conducive Policy Environment for Small Enterprise Employment; Labour and Labour-Related Laws in Micro and Small Enterprises: Innovative Regulatory Approaches. (81) pp.2-27.
3.Google images, [online] available at <https://www.google.com/search?q=coir+mat+manufacturing+machine&hl=en-LK&sxsrf=ALeKk01QZBvusG6b2FDSzyBpwedAEYCXIg:1582244269877&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjWqp2dr-HnAhU7yDgGHQGWCxwQ_AUoAXoECA0QAw&biw=1366&bih=576#imgrc=teYrgqOim9GnFM>. [accessed on 21st of February 2020].
4. Sri Lanka Export Development Board, [online] available at. <https://www.srilankabusiness.com/coconut/coco-peat-products.html>. [accessed on 21st February 2020].
The SME and ME sectors are becoming the big challenge to maintaining the regulations and law amendments because the sector mostly prefers to maximise the profits by lowering the overhead costs. The employee wages are lower and working hours longer than for working in larger enterprises. Further, some employments unit workers are not having full-time or typical work contracts, so they are excluding from common labour laws.
For example, the coir industry is the upcoming small-medium enterprise in Sri Lanka, The coconut plantation is one of the major Agri Economy of Sri Lanka. So, the coconut husks are transformed and produced into doormats, coir mattress, brushes and coco peats. The coco peat expands its demand to the international export market. Sri Lanka has given a significant contribution to internationally balancing the cocopeat demand.(source; Sri Lanka Export Development Board)
The production circle starts collecting the coconut husks, this has mainly done by contract workers supplying raw materials to the industry. These workers not have comes under the labour rules. Thereafter, husks are standardised and filtered to make as small pieces and compressed for export. So, the production unit labours only have calculated as the labour market of SME and ME.
But, this coir industry barriers production in the monsoon of Sri Lanka. The industry might stop production until the rain was stopped, then labours will be unemployed and wages also stopped. The labour law is performing to safeguard the employees from an uncertain situation. However, the industry will suffer to pay wages until re-start the production progress.
At the same time, the SME and ME are discriminate in employees their nature of working conditions, the wages and benefits are provided invariance in employee to employee. The labour law says discrimination in employment has to be defused. So, labour law has to regulate the environment for SME that promote decent work which also facilitates economic growth.
So, the labour department and INGOs' making regular visits and confirms the safety of employees and ensure the post-employment benefits such as medical checkups, holidays and overtime payments. Labour regulation should pursue three inter-related and mutually reinforcing objectives: promoting human capabilities, improving job quality, and encouraging formalization of SMEs Colin et al, (2007).
Most of SMEs are gives a recent startup the projection, So, the sector is lack of available sources and fundamental rights of its employees such as minimum wages, timely payoff, occupational health and safety standards, discrimination and child labour Colin et al, (2007).
The sector is targeting the female labours to their employees because the male labours are requests the higher wages than female labours and managing and handling are conveniences than the male. At the same time, the child labours are directly or indirectly cannot be avoidable in this sector. Some female labours bring their child to the workplace for purposely to get additional income by them. The consideration of labour law in SME is low and difficult to educate the labours. The human resource management is laking of its function in the SME sector because most business owners pr overall managers handle the labours and employee needs Armstrong, (2014).
In SME, health and safety precautions methods are maintaining lower standards, So, the labours forecast the health issues and worksite accidents are moderately high. As responsible authority for labour issues, the labour department of Sri Lanka visits over the sector and give them a field report advice and forward to state engineer guidance. The amendment of guidance is in respective SME business owners hand.
The SME sector mostly depends on manual labours, machinery usage and high technology is comparably low. So, the high manpower is used for sector productions, but paying low wages and timely payments are not considered as important by SME business owners.
In Sri Lanka, labours and their rights are coming under the Labour Board, mainly their wages are calculated are differed by sectors. But specifically not all the labours having adequate knowledge of labour law, labours are works to elevate the poverty and survive their lives. However, as a human being, the sector should understand the labour problems and enhance them by amending the labour law and regulations in a proper manner. The government is unable to impose the heavy rules to this sector because of fear of exiting sector and unemployment and poverty level will be raised to uncontrollable manner. So, the government has a soft handling SME sector and funding and giving subsidies to enhance the sector with proper guidance.
Thank you
Reference
1. Armsrtong, M. (2014). Armstrong’s handbook of human management practice. p.11.
2. Colin.F, John. H, Shelly.M, and Ingrid.L. (2007). Series on Conducive Policy Environment for Small Enterprise Employment; Labour and Labour-Related Laws in Micro and Small Enterprises: Innovative Regulatory Approaches. (81) pp.2-27.
3.Google images, [online] available at <https://www.google.com/search?q=coir+mat+manufacturing+machine&hl=en-LK&sxsrf=ALeKk01QZBvusG6b2FDSzyBpwedAEYCXIg:1582244269877&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjWqp2dr-HnAhU7yDgGHQGWCxwQ_AUoAXoECA0QAw&biw=1366&bih=576#imgrc=teYrgqOim9GnFM>. [accessed on 21st of February 2020].
4. Sri Lanka Export Development Board, [online] available at. <https://www.srilankabusiness.com/coconut/coco-peat-products.html>. [accessed on 21st February 2020].
Agree with your points,Governments could help in many ways, including the provision of guarantees, the creation and support of specific loans for SMEs or grants for those who achieve certain objectives, such as improving productivity or hiring additional staff. They could also favor them in their fiscal policies.
ReplyDeleteI would like to add some points to your statement that the Board of Investment of Sri Lanka encourages and promotes capacity cooperation in this area to manage labor harmony in facilities and advises employers and employees through the department of Industrial Relations and provides guidance. The employees in this section especially SME and ME sectors provide employers and employees with consulting services and guidance on all aspects of industrial relations. The agency must notify the department of the arrested dispute or problem or its presence in the area so that the competent authority can take prompt reconciliation measures. This needs to be carry out to the grassroots level to make understand the opportunities available.
ReplyDeleteWork and work-related laws in micro and small businesses must follow an innovative regulatory approach. The creation of an optimal regulatory and regulatory environment as part of the general business environment to promote the employment of small businesses has attracted the attention of ILO member states, community partners and donors. It is very debatable how policies and regulations are adequate to increase the quality work of small businesses.
ReplyDelete