The Lok Sabha has passed the Employee Compensation Amendment Bill 2016 (EC Act), raising the minimum penalities from 5000/- to 50000/- even in case of failure of employer to report notice to Commissioner or to apprise the employee about his rights. The EC Act is applicable to those estt. where the ESI Act is not applicable and also to those workers whose are outside the purview of ESI Act i.e. earning above 15000/- pm. The most of the tiny and micro scale estt. comes under the ambit of EC Act, thus vide the said amendment the poor employers would be harassed at the hands of the Trade Unionist who would try to bring the employers to their illegal terms.