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Labour laws in India
1. Labour Laws In India
Presented by
Yashaswee Sarkhel & Divyansha Leekha
1st Year
Symbiosis Law School, NOIDA
2. What is Labour Law?
• A combined body of laws, administrative rulings,
precedents, enactments and precedents
• Addressing
a) The legal rights
b) And the duties of
working people and their organizations
3. In other words…
• It defines both rights and obligations of
a) Workers
b) Union Members
c) Employers
at a workplace.
• It is also called as ‘Employment Law’
• In India, law relating to labour and employment is primarily known under
the broad category of "Industrial Law"
4. What does it cover?
Generally Labour Laws cover
• Industrial relations
a) certification of unions,
b) labour-management relations,
c) collective bargaining
d) unfair labour practices
5. Continued…
• Workplace health and safety
• Employment standards
a) general holidays,
b) annual leave,
c) working hours,
d) unfair dismissals,
e) minimum wage,
f) layoff procedures
g) severance pay.
7. Continued…
• How the need arose
During the post world war I era the need for
definite labour laws were felt for the first time.
Previously, organizations all over the world
made their labourers work with little or no
power and with minimal pay. This kept the
labour cost low and increased the profit margin.
8. Continued…
However, during this time period, the voices of the
workers, against such labor practices, started to rise.
On one hand there were workers demanding better
work atmosphere, increased wage and right to
organize
On the other there were organizations trying to
restrict the power of workers and to keep labour
costs low, and avoid the gaining of political power of
the workers.
9. Continued…
This conflict between these two opposite
interests in the society highlighted the need for a
set of regulations i.e. laws. That will maintain a
balance between the rights and liabilities of
both the employer and the employee.
In addition to that, which will also ensure the
peaceful working of the organizations.
10. Continued…
• International Labour Organisation (ILO) was
one of the first organisations to deal with labour
issues.
• The ILO was established as an agency of the Lea
gue of Nations following the Treaty of Versailles,
which ended World War I
11. Continued…
• Most of the labour legislations in India are pre-
constitutional.
• Until 1919, there were no important labour
legislations in India.
• With the establishment of ILO coupled with
trade union pressure in the country, has greatly
affected labour legislations
12. Factors Influencing Evolution of
Labour legislation
Several factors which influenced the evolution of labour
legislation in India :-
• Early Industrialism
• Influence of colonial rules
• The rise of Trade Union
• The growth of Humanitarian ideas and the concept of
Social justice
15. Purpose of Labour laws
There are three crucial purposes which labour
laws fulfill
1. Establishing a legal system that facilitates productive individual and
collective employment relationships, and therefore a productive
economy.
2. providing a framework within which employers, workers and their
representatives can interact with regard to work-related issues,
it serves as an important instrument for achieving harmonious industrial
relations based on workplace democracy.
16. Continued…
• providing a clear and constant reminder and
guarantee of fundamental principles and
rights at work which have received broad
social acceptance and establishes the
processes through which these principles
and rights can be implemented and
enforced.
17. Labour Policy In India…
• Creative measures to attract public and private
investment.
• Creating new jobs
• New Social security schemes for workers in the
unorganized sector.
• Social security cards for workers.
• Unified and beneficial management of funds of
Welfare Boards.
• Reprioritization of allocation of funds to benefit
vulnerable workers.
• Model employee‐employer relationships.
18. Continued…
• Long term settlements based on productivity.
• Vital industries and establishments declared as `
public utilities`.
• Special conciliation mechanism for projects with
investments of Rs.150 crores or more.
• Industrial Relations committees in more sectors.
• Labour Law reforms in tune with the times. Em
powered body of experts to suggest required cha
nges.
19. Continued…
• Statutory amendments for expediting and
streamlining the mechanism of Labour Judiciary.
• Amendments to Industrial Disputes Act in tune with
the times.
• Efficient functioning of Labour Department.
• More labour sectors under Minimum Wages Act.
• Child labour act to be aggressively enforced.
• Modern medical facilities for workers.
• Rehabilitation packages for displaced workers.
• Restructuring in functioning of employment exchan
ges. Computerization and updating of data base.
20. Continued…
• Revamping of curriculum and course content in
industrial training.
• Joint cell of labour department and industries
department to study changes in laws and rules
21. Category
• Labour laws enacted by the Central Government,
where the Central Government has the sole resp
onsibility for enforcement.
Few examples are:
a) The Employees’ State Insurance Act, 1948
b) The Employees’ Provident Fund and Miscellan
eous Provisions Act,1952
c) The Mines Act, 1952
22. Continued…
• Labour laws enacted by Central Government
and enforced both by Central and State
Governments
Few examples are:
a) The Minimum Wages Act, 1948
b) The Payment of Bonus Act, 1965
c) The Payment of Gratuity Act, 1972
d) The Payment of Wages Act, 1936
23. Continued…
• Labour laws enacted by Central Government and
enforced by the State Governments
Few examples are:
a) The Employers’ Liability Act, 1938
b) The Factories Act, 1948
c) The Motor Transport Workers Act, 1961
d) The Personal Injuries (Compensation
Insurance) Act, 1963
24. Continued…
• Laws enacted by state governments and enacted
by state governments in respective states.
Few examples are:
a) Workmen’s Compensation (Madhya Pradesh)
Rules, 1962
b) Madhya Pradesh Workmen’s Compensation (
Occupational Diseases) Rules, 1963
c) Gujarat Workmen's Compensation Rules, 1967
25. Classification
• Laws related to Industrial Relations
• Laws related to Wages
• Laws related to Working Hours, Conditions of
Service and Employment
• Laws related to Equality and Empowerment of
Women
• Laws related to Deprived and Disadvantaged
Sections of the Society
• Laws related to Social Security
26. Continued…
• Laws related to Industrial Relations
a) Trade Unions Act, 1926
b) Industrial Employment Standing Order Act,
1946.
a) Industrial Disputes Act, 1947.
27. Continued…
• Laws related to Wages
a) Payment of Wages Act, 1936
b) Minimum Wages Act, 1948
c) Payment of Bonus Act, 1965.
d) Working Journalists (Fixation of Rates of Wag
es Act, 1958
28. Continued…
• Laws related to Working Hours, Conditions of
Service and Employment
a) The Apprentices Act, 1961
b) The Contract Labour (Regulation and Abolitio
n) Act, 1970
c) Mines and Mineral (Development and Regulati
on Act, 1957
29. Continued…
• Laws related to Equality and
Empowerment of Women
a) Maternity Benefit Act, 1961
b) Equal Remuneration Act, 1976
30. Continued…
• Laws related to Deprived and Disadvantaged
Sections of the Society
a) Bonded Labour System (Abolition) Act, 1976
b) Child Labour (Prohibition & Regulation) Act, 1
986
c) Children (Pledging of Labour) Act, 1933
31. Continued…
• Laws related to Social Security
a) Workmen’s Compensation Act, 1923.
b) Employees’ State Insurance Act, 1948.
c) Employees’ Provident Fund & Miscellaneous P
rovisions Act, 1952.
d) Payment of Gratuity Act, 1972.
e) Employers’ Liability Act, 1938
33. Continued...
OBJECT OF THE ACT
• “Promotion of New manpower at skills”.
• Improvement/refinement of old skills through theoretical and practical
training in number of trades and occupation.
APPLICABILITY OF THE ACT
• According to Sec.1 Areas and industries as notified by the Central
Government.
QUALIFICATION FOR BEING TRAINED AS AN APPRENTICE
• Sec 3. A Person cannot be an apprentice in any designated trade unless
• He is not more than 14 years of age;
• He satisfies such standard of education and physical fitness as may be
prescribed.
34. Continued…
PERIOD OF APPRENTICESHIP
• Training to be determined by the National
Council.
CONTRACT OF APPRENTICESHIP
• According to Sec.4 To contain such terms and
conditions as may be agreed to by the
apprentice, or his guardian (in case he is a
minor) and employers.
35. Continued…
OBLIGATIONS OF APPRENTICE
• To learn his trade conscientiously, diligently.
• To attend practical and instructional classes regularly.
• To carry out all lawful orders.
• To carry out his contractual obligations.
HEALTH SAFETY & WELFARE MEASURES FOR
APPRENTICE
• As per Factories Act or Mines Act as the case may be
when undergoing training.
36. Continued…
HOURS OF WORK
• 42 to 48 in a week while on theoretical training.
• 42 in a week while on basic training.
• 42 to 45 in a week in second year of training.
• As per other workers (in the third year).
• Not allowed to work between 10 PM to 04 AM unless approved by
Apprenticeship Advisor.
LEAVE & HOLIDAYS
• Casual Leave for the maximum period of 12 days in a year.
• Medical Leave for the maximum period of 15 days and the
accumulated leave up to 40 days in a year.
• Extraordinary leave upto a maximum period of 10 days in a year.
37. Continued…
PAYMENT OF APPRENTICE
• The employer to pay such stipend at a rate of not less
than prescribed minimum rate as may be specified.
Sec.6
EMPLOYER’S LIABILITY TO PAY
COMPENSATION FOR INJURY
• As per provisions of Workmen's Compensation Act.
Sec.16
38. Continued…
OFFENCES & PUNISHMENT
• Imprisonment of a term upto 6 months or with fine
when employer
• Engages as an apprentice a person who is not qualified
for being so engaged or
• fails to carry out the terms and conditions of a contract
of apprenticeship, or
• contravenes the provisions of the Act relating to the
number of apprentices which he is required to engage
under those provisions.
40. Industrial Disputes Act…
•INDUSTRY - has attained wider meaning than defined except for
domestic employment, covers from barber shops to big steel
companies. Sec.2(I)
•WORKS COMMITTEE -Joint Committe with equal number of
employers and employees representatives for discussion of certain
common problems. Sec.3
•CONCILIATION - is an attempt by a third party in helping to settle
the disputesSec.4
•ADJUDICATION - Labour Court, Industrial Tribunal or National
Tribunal to hear and decide the dispute. Sec.7,7A & 7B
42. Continued…
LAY OFF & PAYMENT COMPENSATION- Conditions
for Laying off
Failure, refusal or inability of an employer to provide work due
to
• Shortage of coal, power or raw material
• Accumulation of stocks
• Breakdown of machinery
• Natural Calamity
Sec.25-C
43. Continued…
LAY OFF COMPENSATION
Payment of Wages except for intervening weekly
holiday compensation 50% of total or basic wages
and DA for a period of lay off upto maximum 45
days in a year.
44. Continued…
PROHIBITION OF STRIKES & LOCKS OUTS
• Without giving to the employer notice of strike, as hereinafter provided,
within six weeks before striking
• Within fourteen days of giving such notice.
• Before the expiry of the date of strike specified in any such notice as
aforesaid.
• During the Pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings.
• During the pendency of conciliation proceedings before a Board and seven
days after the conclusion of such proceedings
45. Continued…
• During the pendency of conciliation proceedings before a Board and
seven days after the conclusion of such proceedings.
• During the pendency of proceeding before a Labour Court, Tribunal
or National
• Tribunal and two months, after the conclusion of such proceedings.
• During the pendency of arbitration proceedings before an arbitrator
and two months after the conclusion of such proceedings, where a
notification has been issued under Sub-Section (3A) of Section 10A
• During any period in which a settlement or award is in operation, in
respect of any of the matters covered by the settlement or
award.Sec.22 & 23
46.
47. Continued…
•COVERAGE OF WORKMEN
According to Sec. 1(3) "All workers irrespective of their status or
salaries either directly or through contractor or a person
recruited to work abroad.“
•EMPLOYER‘S LIABILITY TO PAY COMPENSATION TO A
WORKMAN
According to Sec. 3 "On death or personal injury resulting into
total or partial disablement or occupational disease caused to a
workmen arising out of and during the course of the employment."
48. Continued…
AMOUNT OF COMPENSATION
• Where death of a workman results from the injury - An amount equal to
fifty per cent of the monthly wages of the deceased workman multiplied by
the relevant factor on an amount of eighty thousand rupees, whichever is
more.
• Where permanent total disablement results from the injury.
• An amount equal to sixty per cent of the monthly wages of the injured
workman multiplied by the relevant factor or an amount of ninety
thousand rupees, whichever is more.
50. Continued…
APPLICABILITY
• Every person employed in any factory, upon any railway or through
subcontractor in a railway and a person employed in an industrial
or other establishment.
• The State Government may by notification extend the provisions to
any class of person employed in any establishment or class of
establishments.
ELIGIBILITY
• Every person who is employed in any of the above mentioned
establishments and who is drawing less than Rs. 1,600 per month
51. Continued…
BENEFITS : the Act prescribes for
• The regular and timely payment of wages (on or before 7th
day or 10th day after last day of the wage period in respect of
which the wages are payable)
• Preventing unauthorised deductions being made from wages
and arbitrary fines.
PENAL PROVISIONS
• Penalties are from Rs. 200-1000. Repeat offenses attract 1 to
6 months imprisonment and fine from Rs. 500-3000.
• Delay wage payments attract penalty of Rs. 100 per day of
delay
53. Minimum Wages Act 1948…
APPLICABILITY
Any person who directly or through another person, whether for
himself or for any other person employs one or more employees
in any scheduled employment in respect of which minimum
rates of wages have been fixed under this Act.
ELIGIBILITY
Any person who is employed for hire or reward to do any work
in a scheduled employment and includes an outdoor worker to
whom any articles or materials are given for either doing some
work either at home or at any other premises.
54. Continued…
BENEFITS
The Act prescribes the minimum rates of wages payable to
employees for different scheduled employment for
different class of work and for adults, adolescents, children
and apprentices depending upon different localities.
PENAL PROVISIONS
Imprisonment up to 6 months and/or fine up to Rs. 500 is
imposable for contravention.
56. Contract Labour Act, 1970
OBJECT OF THE ACT
To regulate the employment of contract labour in
certain establishment and to provide for its
abolition in certain circumstances and for matters
connected therewith.
57. Continued…
APPLICABILITY
Every establishment in which 20 or more
workmen are employed or were employed on any
day of the preceding 12 months as contract labour.
• Every Contractor who employs or who employed
on any day of the preceding twelve months 20 or
more workmen.
58. Continued…
REGISTRATION OF ESTABLISHMENT
• Principal employer employing 20or more
workers through te contractor or the contractors
on deposit of required fee in Form 1.
Sec.7
59. Continued…
PRINCIPAL EMPLOYER
• To Maintain a register of contractor in respect of every
establishment in Form XII.
Rule 74
CONTRACTOR
• To Maintain Register of workers for each registered
establishment in Form XIII.
• To issue an employment card to each worker in Form
XIV.
• To issue service certificate to every workman on his
termination in Form XV.
Rule 75,76 and 77
60. Continued…
MUSTER ROLL, WGAES REGISTER,
DEDUCTION OF REGISTER & OVERTIME
REGISTER BY CONTRACTOR
• Maintain Muster Roll and a Register of Wages in
Form XVI and Form XVII respectively when
combined.
• Register of wage-cum Muster Roll in Form XVII
where the wage period is a fortnight or less.
• Maintain a Register of Deductions for damages or
loss, Register of Fines and Register for Advances in
Form XX, Form XXI and Form XXII respectively.
61. Continued…
• Maintain a Register of Overtime in Form XXIII.
• To issue wage slips in Form XIX, to the
workmen at least a day prior to the
disbursement of wages.
• Obtain the signature or thumb impression of the
worker concerned against the entries relating to
him on the Register of Wages or Muster Roll-
Cum-Wages Register.
62. Continued…
When covered by Payment of Wages Act, register
and records to be maintained under the rules of
Overtime, Register of Fines, Register of Advances,
Wage Slip.
Muster Roll, Register of Wages, Register of
Deductions, Register of Overtime, Register of
Fines, Register of Advances, Wage Slip.
Rule 79
63. Continued…
To display an abstract of the act and Rules in
English and Hindi and in the language spoken by
the Majority of workers in such forms as may be
approved by appropriate authority.
Rule 80
64. Continued…
To display notices showing rates of wages, hours
of work, wage period, dates of payment, names
and addresses of the inspector and to send copy to
the inspector and any change for with.
Rule 81
65. Employees’ State Insurance Act, 1948
• Introduction
The object of the Act is to secure sickness,
maternity, disablement and medical benefits to
employees of factories and establishmens and
dependents benefits to the dependents of such
employees.
• Applicability of the Act
To all Factories & establishments employing 20 or more
employees.
Every employee drawing wages (Gross Salary) upto
Rs.15,000/- Per month.
66. Employers Provident Fund & Miscellaneous
Provisions Act 1952
• Objective
The Employee's provident funds and
miscellaneous provisions act, 1952 is enacted to
provide a kind of social security to the industrial
workers. The Act mainly provides retirement or
old age benefits, such as
a) Provident Fund,
b) Superannuation Pension,
c) Invalidation Pension,
d) Family Pension
e) Deposit Linked Insurance.
67. Continued…
• Applicability of the Act
• To every factory employing 20 or more persons.
• An employee whose pay at the time he is otherwise entitled to
become a member of the fund exceeds Rs.6500/- per month
• An Employee who having been a member of the fund, has
withdrawn the full amount of his contribution in the fund
(a) on retirement from service after attaining the age of 55 years or
(b) before migration from India for permanent settlement abroad;
or for taking employment abroad.
70. Payment of Bonus Act, 1965
• Applicability
(a) Every factory (as def. in Factories Act), &
(b) Every other establishment in which 20 or more persons (less
than 20 but 10 or more if appropriate Govt. notifies) are
employed on any day subject to certain exemptions.
Employees' drawing remuneration of Rs. 3,500/- or more and
those who have worked for less than 30 days are not eligible
to receive bonus under the Act.
Bonus to be paid within eight months from the expiry of the
accounting year.
71. Continued…
• Eligibility
i) Every person (other than an apprentice)
drawing salary up to RS 3,500 per month.
ii) Every person drawing salary between RS
2,501/- and RS 3,500/- per month. The bonus
payable to him is to be calculated as if his
salary were RS 2,500/- p.m.
•
72. Continued…
• Benefits
i) Subject to other provisions :— Minimum bonus shall be
8.33% of salary/wages earned or RS 100 whichever is
higher.
ii) If allocable surplus exceeds the amount of minimum bonus,
then bonus shall be payable at higher rate subject to a
maximum 20% of salary/wages.
iii) Computation of bonus is to be worked out as per Schedule I
to IV of the Act.
•
74. Continued…
• Maintenance of registers
• Every employer shall prepare and maintain the following
registers, namely:-
a register showing the computation of the allocable surplus
referred to in clause (4) of section 2, in form A
a register hoving the set-on and set-off of the allocable
surplus, under section 15, in form B.
a register showing the details of the amount of bonus due to
each of the employees, the deductions under sections 17 and
18 and the amount actually disbursed, in Form C.
76. Maternity Benefit Act, 1961
OBJECT:
• to provide for maternity benefit to women
employees
• to regulate the employment of women for certain
periods before and after childbirth.
The Act does not apply to any factory or establishment to
which the ESI Act is applicable. ESI Act, 1948 provides for
maternity benefits separately.
77. Continued…
Restriction on employment of women: Sec. 4:
• Employer is prohibited from knowingly
employing a woman during six weeks
immediately following the day of her delivery,
miscarriage, or medical termination of
pregnancy.
• A woman also on her part shall not work during
the period of six weeks as above.
78. Continued…
•A pregnant woman can request the employer not to
give her any work which is of arduous nature or which involves long
hours of standing, likely to interfere with the pregnancy or the normal
development of the foetus or is likely to cause miscarriage or otherwise
adversely affect her health, during the period of one month
immediately preceding the period of six weeks, before the date of her
expected delivery or during the six weeks period for which the
pregnant woman though entitled, does not avail the leave of absence.
On such a request, the employer shall not give her such work during
the period as above.
79. Continued…
Period for which a woman is entitled to maternity
benefit and the nature of benefit OR Right to
payment of maternity benefit: Sec. 5 and 18:
• Maximum period a woman is entitled to maternity
benefit shall be 12 weeks of which up to 6 weeks
shall be before the date of her expected delivery.
• If the woman dies during this period, the maternity
benefit shall be payable only for the days up to and
including the day of her death.
80. Continued…
• If the woman, having delivered a child, dies during
the period for which she is entitled for the maternity
benefit, leaving behind the child, the employer shall
pay the maternity benefit for the entire period. If the
child also dies during the said period, then the
payment shall be made up to the date of the death of
the child.
• A woman shall not be entitled to MB unless she has
actually worked in the establishment for a period of
not less than 80 days in the 12 months immediately
preceding the date of her expected date of delivery.
81. Continued…
• When calculating the number of days a woman
has actually worked, the days of lay-off or leave
with wages shall be included.
• A woman shall be entitled to the payment of MB
at the rate of average daily wage for the period of
her actual absence (maximum 12 weeks), or the
rate fixed under the Minimum Wages Act or Rs.
10/- per day whichever is higher.
82. Continued…
• The average daily wage means average of the last
3 calendar months immediately preceding the
date from which she goes on leave on account of
maternity.
• A woman, who goes on maternity leave, but she
works in any other establishment during the
period of such leave, shall forfeit her claim to
MB for such period.
83. Continued…
• MEDICAL BONUS: Sec. 8 Rule 5: A woman
who is entitled to MB shall also be entitled to
receive from the employer a medical bonus of
Rs. 250/- if the employer provides for no pre-
natal confinement and post-natal care free of
charge. Medical bonus shall be paid along with
the second installment of the MB.
84. Continued…
• LEAVE FOR ILLNESS CONCERNING
CHILDBIRTH: Sec. 10: A woman suffering
from illness arising out of pregnancy, delivery,
premature childbirth, miscarriage, medical
termination of pregnancy or tubectomy
operation shall be entitled to an additional leave
with wages at the rate of MB for a maximum
period of one month.
85. Continued…
• NURSING BREAKS: Sec. 11: A woman who
returns to duty after delivery shall be allowed two
additional breaks for nursing the child until the
child attains age of 15 months.
• LEAVE FOR TUBECTOMY OPERATION: Sec.
9-A: A woman who undergoes the operation shall,
on production of the required proof, be entitled to
leave with wages at the rate of MB for a period of
two weeks following the day of her operation.
86. Continued…
PENALTY FOR CONTRAVENTION BY THE
EMPLOYER: Sec. 21:
Employer who fails to pay MB, or discharges or dismisses a woman
during her maternity leave, he shall be punishable with imprisonment
of minimum 3 months, maximum up to one year, and fine of not less
than Rs. 2000/- but maximum up to Rs. 5000/-. If there are sufficient
reasons, the court may impose a sentence of lesser term or fine only in
lieu of imprisonment.
Any other contravention – imprisonment up to one year; fine up to Rs.
5000/- or both.
87. Continued…
COGNIZANCE OF AN OFFENCE: Sec. 23:
An aggrieved woman, an office-bearer of a registered trade union of
which the woman is a member or a registered voluntary organization
or an Inspector may file a complaint regarding the commission of an
offence under the Act.
No complaint shall be filed after the expiry of one year from the date of
the alleged offence.
No court inferior to the court of Metropolitan Magistrate or a
Magistrate of the First Class shall try an offence under this Act.
88. Conclusion…
The labour in India consists of about 487 million workers, the second largest after
China. India has numerous labor laws such as those prohibiting discrimination and
child labor, those that aim to guarantee fair and human conditions of work, those that
provide social security, minimum wage, right to organize, form trade unions and enforce
collective bargaining. India is considered to be a highly regulated and most rigid labor
law countries in the world. They need to be flexible for their proper implementation and
should be reviewed from time to time keeping in tune with the labour and economy’s
dynamics.