Sikkim tightens labour regulations, launches district task forces

The Sikkim Labour Department has ramped up efforts to enforce labour laws and monitor employment conditions statewide. Task force teams have been set up in every district to oversee labour-related issues, with District Collectors and Superintendents of Police actively involved in recent coordination meetings to strengthen enforcement.

Under the Sikkim Labour (Regulation of Employment and Conditions of Service) Act, 2021—introduced during the COVID-19 pandemic—all workers, whether in the organized or unorganized sector, must register with the Labour Department before taking up employment in the state.

Organised Sector: Employers must register their establishments and workers, submitting a monthly report on worker details. Official data shows 114 establishments registered under this category, employing 18,995 workers.

Unorganised sector: Individual workers entering Sikkim for employment must also register with the Labour Department. Unregistered employment is strictly prohibited.

Workers receive a registration card upon enrollment, which includes their name, address, employer details, and identification proof. The process requires photographs, Aadhaar, and voter ID and can be completed at district labour offices, Rangpo, and designated check posts.

The Labour Department clarified that the registration card is not an entry permit or trade license and does not grant residency rights in Sikkim. Foreign nationals, including Nepalese citizens, must register through the Foreigners’ Registration Office instead.

Violations of registration requirements incur a fine of Rs. 2,500, and the Labour Department has the authority to impose penalties. Registration is an ongoing process and must be completed as soon as workers arrive in the state. The registration card remains valid until March 31 of each financial year and must be renewed annually.

Currently, the labour registration process is manual, but the state is developing a centralized database. Plans are in motion to launch an online registration system via a mobile app and website, aimed at streamlining the process and improving record-keeping.

The Labour Department also stated that while it sets the minimum wage rate for workers, the maximum wage is determined by market forces. Further, students are exempt from registration, as they do not fall under the worker classification.