Labour laws in India

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Labour laws in India

  1. 1. Labour Laws In India Presented by Yashaswee Sarkhel & Divyansha Leekha 1st Year Symbiosis Law School, NOIDA
  2. 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. 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. 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. 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.
  6. 6. HISTORY
  7. 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. 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. 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. 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. 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. 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
  13. 13. Continued… • Indian constitution • Establishment of ILO • National movement
  14. 14. Industrialization & British colonialism Complex industrial relations Inadequate civil laws Protect & safeguard labor rights Labour policy
  15. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 29. Continued… • Laws related to Equality and Empowerment of Women a) Maternity Benefit Act, 1961 b) Equal Remuneration Act, 1976
  30. 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. 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
  32. 32. THE APPRENTICES ACT, 1962
  33. 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. 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. 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. 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. 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. 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.
  39. 39. INDUSTRIAL DISPUTES ACT 1947
  40. 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
  41. 41. Lockouts Others Primar y strikes Work- to-rule Strikes Industrial Disputes Symp atheti c Stay- away Go- slow Gherao Token or protest strike 1.General. 2.Particul ar 3.Political . 4.Bandhs Secondary strikes Hunge r strike Sit/pen/ tool/lie down or stay- in Picketin g & boycott Lightenin g or cat call strike Irritatio n strike Runnin g-sore strike
  42. 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. 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. 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. 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. 46. 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."
  47. 47. 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.
  48. 48. Payment of Wages Act 1936
  49. 49. 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
  50. 50. 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
  51. 51. MINIMUM WAGES ACT 1948
  52. 52. 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.
  53. 53. 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.
  54. 54. CONTRACT LABOUR ACT 1970
  55. 55. 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.
  56. 56. 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.
  57. 57. 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
  58. 58. 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
  59. 59. 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.
  60. 60. 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.
  61. 61. 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
  62. 62. 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
  63. 63. 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
  64. 64. 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.
  65. 65. 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.
  66. 66. 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.
  67. 67. Continued… •PF interest Rate is 9.5% per annum
  68. 68. PAYMENT OF BONUS ACT 1965
  69. 69. 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.
  70. 70. 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. •
  71. 71. 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. •
  72. 72. Continued… • Penal Provisions Imprisonment up to 6 months and or fine up to RS 1000/-
  73. 73. 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.
  74. 74. MATERNITY BENEFIT ACT, 1961
  75. 75. 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.
  76. 76. 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.
  77. 77. 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.
  78. 78. 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.
  79. 79. 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.
  80. 80. 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.
  81. 81. 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.
  82. 82. 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.
  83. 83. 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.
  84. 84. 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.
  85. 85. 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.
  86. 86. 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.
  87. 87. 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.
  88. 88. Thank You..

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