Brief introduction about laws of labour, industry and tax

1. LABOUR, INDUSTRIAL AND TAX
LAWS
Dr. N. Yuvaraj
Assistant Professor
Achariya Arts and Science College
Villianur , Puducherry

2. Necessity of Labour Laws
1. For improving industrial relations and maintaining
industrial peace.
2. To save the workers from the exploitation of the
employer.
3. To minimise and settling of the industrial dispute.
4. To help in payment of fair wages to the workers.
5. To give compensation to those workers who are victim of
accidents.

3. 6. To reduce the conflicts, strikes etc.
7. To provide job security for the workers and compensation
during lay off period.
8. To provide good working conditions for the workers.
9. To fix hours of work, rest pauses etc.

4. INDUSTRIAL ACTS
1. The Factories Act, 1948
2. Workmen’s Compensation Act, 1923
3. Minimum Wages Act, 1948
4. Employees State Insurance Act, 1948
5. Employees Provident Fund Act, 1947
6. Industrial Dispute Act, 1947
7. Payment of Wages Act, 1936

5. The Factories Act, 1948
 This act regulates condition of work in factories. The
working conditions should ensure the health and safety of
workers.
 The factories act 1948 is a comprehensive piece of
legislation covering all aspects regarding the factories.
 The act extends to the whole of India including the state
Jammu & Kashmir. It came into force on 1st April 1949.
 This act was further amended in 1950, 1951, 1954 and
1976.

6. Workmen’s Compensation Act, 1923
 The act seeks to compensate the workers injured.
 This act came into existence in 1923.
 The act was amended subsequently in 1933, 1938, 1939,
1958, 1962 and 1976.
 This act is applied to all workers in the factories, mines,
docks and railways.
 It is also applicable to transport workers, telegraph and
telephone linesmen and workers in building profession.

7. Minimum Wages Act, 1948
 The granting of minimum wages to the workers is one of
the essential requirements.
 The wages should be sufficient to maintain the worker and
his family .
 The object of the Act is to prevent exploitation of the
workers.
 The minimum wages act is a piece social legislation
intended to do social justice to the workers.

8. Employee’s State Insurance Act, 1948
 The object of this act is to provide for certain benefits to
employees in case of sickness, maternity and employment
injury.
 The benefits which the act wants to give to the employees
are of a nature which would be difficult for any individual
factory owner to provide for his own employees.

9. Employee’s Provident Fund Act, 1952
 This act provides some provisions for the future of
industrial worker when he retires and for the benefits of
his dependents in case of his death.
 The government employees are given pension after
retirement whereas industrial workers have the
contributory provident fund schemes.

10. Industrial Dispute Act, 1947
 This act aims at making industrial peace through voluntary
negotiations and compulsory adjudication.
 The act makes provision for settlement of industrial
disputes between employee and employer.

11. Payment Of Wages Act, 1936
 The main purpose of this act is,
 to ensure regular and timely payment of wages to the
employed persons,
 to prevent unauthorised deductions being made from
wages and arbitrary fines being imposed on the employed
persons.
 The act extends to the whole if India.

12. Indian Contract Act of 1872 - partnerships and the sale of
goods are now covered.
Partnership Act of 1932 -covers partnership firms in India.
Business laws regulating chartered accountants and cost
accountants were passed in 1949 and 1959, respectively.
Banking Regulation Act of 1949 continues to regulate private
banking companies and manage banks in India.
Following India’s economic development in the 21st century, the
Ministry of Corporate Affairs passed the Competition Act of
2002 and the Limited Liability Act in 2008.

13.  Industrial Disputes Act of 1946 regulates trade unions and
matters between industrial employers and employees.
 Business laws in India include consumer protection.
The Consumer Protection Act, 1986 mandates Consumer
Dispute Redressal Forums at local and national levels.
 Standards of Weights & Measures Act of 1956, ensure fair
competition in the market and free flow of correct information
from providers of goods and services to consumers

14.  Foreign Trade (Development and Regulation) Act of 1992 -
to facilitate imports and augment exports.
 Foreign Exchange Management Act of 1999 regulates
foreign exchange transactions including investments abroad.
 The Information Technology Act of 2000 is the primary law
for e-commerce regulation in India. In 2008, the IT Act was
amended to provide explicit legal recognition of electronic
transactions.

15. PRINCIPLES OF TAXATION
1. Administration,
2. Defence from external aggression,
3. Police for the maintenance of law and order,
4. Judicial courts for administration of justice,
5. Schools and colleges for giving education to people,
6. Hospitals for the preservation of health etc.

16. INCOME TAX
 Income Tax is one of the major sources of revenue for
the government.
 The responsibility for collection of income tax vests with
Central Government.
 This tax is leviable and collected under Income-Tax Act,
1961.
 Income Tax is charged annually on the total income of
every person for the previous year and at the rates fixed
by the relevant Finance Act.

17. SALES TAX (Central and State)
 The Central Sales Tax Act 1956 is a fiscal legislation
which in particular imposes a levy of tax on sale of goods
in the course of inter-state trade or commerce.
 This law was enacted by Parliament in exercise of
authority conferred upon it under Article 286 and Article
269(3) of the constitution.
 This act formulates principles for determining when a sale
or purchase of goods takes place in the course of import
into or export from India.

18. Central Excise Duty
 Excise duty is essentially a tax on the production or
manufacture of excisable goods, produced or
manufactured within the country and is unrelated to the
sale of the same.
 The Central Excise Act, 1944 is one of the most important
tax collecting status of the union of India.
 It, along with other connected subsidiary legislation,
regulates the levy and collection of duties of central
excise on goods manufactured or produced in India.

19. PRODUCTION TAX
 This is an indirect tax levied by the tax raising
authorities like municipal corporation dist. Authorities etc.
 to collect revenue for meeting their expenses.
 This tax is added in the cost of the product and ultimately
the purchase pays for this tax indirectly.

20. LOCAL TAX
 This is also an indirect tax, collected by the local bodies
like Area Development Committee, Municipal
CORPORATION, and Notified Areas etc., by imposing
duties on goods brought in the city/town or goods to be
carried out of it.
 These local bodies raise their fund like to meet with their
establishment expenses and the like , chungi in Uttar
Pradesh and Qctoroi in West Bengal are some examples of
local taxes.

21. Thank you