Right to Food Campaign

EXPLANATORY NOTE:

Contrast between the 16 July and 14 August drafts of the National Rural Employment Guarantee Act.

BACKGROUND

1. The 16 July draft (posted on this website in the "Employment Guarantee Acts" section) was the outcome of two years of consultations within and beyond the Right to Food Campaign. It was intended as an interim draft and is still being improved in the light of recent comments.

2. The 14 August draft (also on the website, in this section) is an adapted version prepared by the National Advisory Council (NAC).

3. The NAC draft does not "supersede" the 16 July draft, and nor is it the final word on this matter. The whole debate is likely to continue for a while.

The main contrast between the two drafts is that the NAC draft includes a cap of "100 days per household" on the number of days of guaranteed employment. This is because the terms of reference of the NAC are grounded in the "Common Minimum Programme" (CMP) of the UPA government. The CMP promises to "immediately enact a National Employment Guarantee Act", but with a cap of 100 days of employment per household. Some members of the Council insisted that the draft Act should be in line with the promise made in the CMP.

The cap of 100 days is obviously a major restriction. Note, however, that it is only an "initial" cap and that the NAC draft includes explicit provisions for the possible extension of work entitlements (a) beyond 100 days per year, (b) to individuals rather than households, and (c) to urban areas. Even if the cap is retained in the final version, the Act can still be used as a stepping stone towards a full-fledged, 365-day work guarantee.

The following are other important features of the NAC draft, compared with the 16 July draft:

1. The term "unskilled manual work" has been replaced with "casual manual work", and the definition of "productive work" has been somewhat enlarged.

2. Provision has been made for the Act to come into force in a phased manner, with time-bound extension to the whole of rural India.

3. Provision has been made for the creation of a Central Council, in addition to State Councils.

4. Labourers are required to "register" (every five years) before they apply for work. This is to facilitate advance planning of works etc.

5. The unemployment allowance has been raised from one fourth to one third of the statutory minimum wage.

6. Provision has been made for "advance applications", that is, applications made in advance of the date for which employment is sought.

7. The upper limit for compulsory contribution to social security funds has been reduced from 10% to 5% of the wage. Provisions have also been made for matching grants, stronger safeguards against misuse of the social security funds, etc.

8. There is a new clause explicitly banning any kind of gender discrimination in the payment of wages.

9. Provision has been made for the employment of disabled persons "in activities that are compatible with their abilities".

10. Payment of wages and unemployment allowances is to be made "directly to the person concerned in front of the community on pre-announced dates".

11. There is an explicit provision for penalties against Programme Officers who fail to carry out their obligations under the Act.

12. There are new clauses relating to the National Employment Guarantee Fund and State Employment Guarantee Funds. However, these clauses are likely to undergo further revision, depending on how the government decides to fund the proposed Employment Guarantee Programme.