It has suggested that the practice of labor inspectors checking on industrial should be shelved. In its place a system of self-certification of labour laws compliance should be done by the SMEs themselves. The panel was headed by the MSME ministry Secretary, Madhav Lal.
In the report it is said that until such time, the system of self-certification starts operating, “Ministry of Labour and Employment and state governments may direct factory inspectors to engage industry associations with adequately sized secretariat to assess the returns filed by the units and take responsibility towards their veracity.”
Keeping in mind, the need for a strong checks and balances system in place, the committee has suggested random inspection to be taken with heavy monetary penalty for non-compliance.