What are the Labour Laws in India?

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What are the Labour Laws in India?

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Every country has a complex and dedicated system of laws which protect the rights and interests of workers and employers to ensure a minimum standard of living and a healthy economy. These laws are known as labour laws. In this article, we will focus on the labour laws in India.

What is Labour Law?

Labour law, sometimes also referred to as employment law, is the body of laws, administrative rulings and precedents which address the legal rights of and restrictions on working individuals and their companies/organizations. As a result, it mediates a number of disputes involving trade unions, companies, and employees. In other words, labour law establishes the duties and entitlements of employees, union members, and employers in the workplace. 

Labour Laws in India

India is the most populated country in the world, and there are many different kinds of workers. Hence, we have multiple labour laws in India. Let’s discuss some of these labour laws in India for private companies as well as other types of companies.

Minimum Wages Act 1948

Minimum Wages Act came into force in 1948 with the goal of bridging the wage disparity between different workers in an employment. Minimum wages act fixes the minimum wage rates for certain employment types. The minimum wage shall be determined on various parameters such as the state where the worker belongs, his skills, qualification, designation, risk involved and other parameters.

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The Workmen’s Compensation Act 1923

The first social security law in India, the Workmen Compensation Act of 1923 offers workers and their relatives compensation for accidents that cause death or injury. 

Back in the 20th century, there was an urgent need for this act as many workers working in factories would meet with accidents and get injuries, sometimes recoverable and other times not recoverable and there wasn’t any law to protect those workers’ rights. After the 1923 act was introduced, workers who got injured in accidents were assured proper compensation. 

The Factories Act 1948

Seeing the miserable conditions of the factory workers, the Factories Act was introduced in 1948. Initially, the factory workers were made to work for long hours for the entire week without breaks and they had to work in a very uncomfortable environment since there was no statue to protect them. 

However, when the Factories Act came into force, these workers were given the assurance that they’ll only work for 48 hours max. in a week along with one weekly off. This Act also guaranteed a proper workable environment for these workers.

The Employees Provident Fund Act 1952

The Employees Provident Act came into force in 1952. It provides for the institution of mandatory Provident Fund, Deposit-Linked Insurance Fund and Pension Fund, for the benefit of the working in factories and other establishments.The EPF act preserves the rights of the employees and assures welfare for them such as medical welfare, housing, retirement pension and so on.

The Maternity Benefit Act 1961

The Maternity Benefit Act was introduced in 1961 for the pregnant women’s welfare. This act is applicable for all female employees who have been working with the organization for the last 80 days at least. Under this Act, maternity leave, healthcare and several other benefits can be availed by women.

Payment of Wages Act 1936

The Payment of Wages Act’s main purpose is to control the timely payment of certain types of employees operating in the industry. In case they face any problem or grievance, an action which is prompt and effective will be taken to resolve the claims and difficulties according to this act’s provisions. 

The Payment of Wages Act guarantees that workers receive their hard earned monthly salary by the seventh of each month. Every month, the employer is required to release each employee's salary during the first week; if this isn't done, he may be charged with an offense. The rights of the workers who were initially having a lot of problems getting their wages paid on time are protected by this act.

Equal Remuneration Act, 1976

In 1976, the Equal Remuneration Act was brought into force by the Government of India to bridge the wage gap between men and women workers. The main goal of this Act is to provide equal wages for men and women based on the nature of employment; to provide equality of opportunity in employment; to protect persons against discrimination related to employment or occupation, and to ensure that no person shall be unfairly dismissed from work only on the grounds of sex. 

No woman shall be dismissed on grounds only of her sex. If anyone faces biases based on these factors, they can sue the employer under this act. This act helps to promote and promise equality among all the sexes, whether it is male or female. 

Employees State Insurance Scheme (ESI Scheme)

ESI Scheme is a welfare scheme for employees who are covered under ESI Act, 1948 in its Section 2(9), in the form of relief payments for up to 3 months (90 days) once in such employees’ lifetime. This scheme’s benefit can be availed by an employee if they face an injury at workplace, during sickness or maternity. 

In other words, ESI Scheme acts as medical insurance and accidental insurance for the employees as well as their families. To make claims for getting relief, the employee can visit the esic website along with submission of physical claims with aadhar photocopy, affidavit and bank account details to ESIC office branch/DCBO by post/in person.

Sexual Harassment of Women at Workplace Act 2013

It has been more than a decade since the Sexual Harassment of Women at Workplace Act was enforced. 

If any woman faces harassment including through physical contact and advances, through sexually coloured remarks, any unsolicited physical, verbal or non-verbal conduct of sexual nature, showing offensive images or a demand/request for sexual favors, she can present it to a committee which is dedicatedly made for this purpose under the Act. The said complaint will be inquired within 90 days from the date of filing.

Payment of Gratuity Act 1972

The Payment of Gratuity Act 1972 is a legislative framework in India that falls under the labour law India. The law is applicable to all Indian companies that employ ten or more people. 

The Payment of Gratuity Act states that if you leave a company after working there for more than five years, you are entitled to receive a gratuity of fifteen days' wages for each year you worked there. The gratuity is like a reward that the corporation must provide to its loyal employees.

The Payment of Bonus Act 1965

The Payment of Bonus Act 1965 focuses on bonuses. It provides the employees of an establishment a statutory right to share their employer’s profit. According to this act, any employee drawing a salary/wage not exceeding ten thousand rupees per month is eligible to receive a bonus. 

Employee, under Section 2(13) of the Payment of Bonus Act, has been described as any person (other than an apprentice) employed on a salary/wage not exceeding Rs. 21,000 per month in any industry to do any skilled/unskilled manual, supervisory, administrative, managerial, technical or clerical work for hire or reward, whether the terms of employment are expressed or implied.

The Act entitles the employees for a statutory bonus of a minimum of 8.33% according to their wage or salary. Every employee who has worked for more than 30 days in a year and receives a minimum salary of 21000/- is eligible for receiving this bonus.

Industrial Dispute Act 1947

Industrial dispute is regarded as any disagreement, conflict, or injury between an employer and their employees, or between labourers and managers, or between labourers and employees themselves, that is related to work-related or non-business terms or business terms that depend on an individual's state of work. 

The Industrial Dispute Act was implemented in 1947 to protect the rights of workers who quit or are fired from their jobs at any point of time. The Act guarantees pay for people whose jobs are abruptly ended. The process to be followed in the event of a job termination is also included in this statute.

Conclusion

Labour laws are basically legal regulations which govern the relationship between an employer and their employees. Each country has its own set of labour laws. In India, we have numerous labour laws. These laws are crucial for any country as they ensure that workplaces operate in a manner which is fair and just, as they outline what the employers must do in terms of paying fair wages and bonus, providing safe working conditions and respecting the rights and interests of workers.

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