Law is necessary for maintaining peaceful environment for the growth of the industry. Labour legislation in India has developed with the growth of the industry. In the eighteenth century India was not only a great agricultural country but a great manufacturing country too. Asian and European markets were mainly fed by the looms supplied by India, but the British Government in India as a matter of policy discouraged the Indian manufacturers in order to encourage the rising manufacturers of England. Their policy was to make India subservient to the industries of Great Britain and to make Indian people grow only raw materials. The British oppression in India continued for a considerable time which led to the growth of Indian nationalism and to a vigorous renaissance. Nationalism has an obvious economic aspect within our country which was reflected in the urge for economic reforms and for industrialization. In the twentieth century the national movement took a new turn and there was a common demand for the Indian goods. A non –co-operation movement which is known as The Swadeshi movement was started, which urged the people to use goods made in India and to boycott foreign goods. The non-co-operation movement synchronized with periods of economic crisis gave impetus to industrialization. Not only that, growth of Indian private sector owes much to these popular movements. No doubt, the Indian Economist, drew their inspiration from British classical Economists but they outgrew those ideas. Like British Economists, Indian Economists not only advocated that the trade and commerce should be free but they laid emphasis on the free trade of local goods. An attempt was made to put forward a theory of economic development and planning suited to conditions of our country. After thirties, the planning was accepted by the national movement as the economic ideology .Thus, planned industrialization became our main goal.In India, the plantation industry in Assam was the first to attract legislative control. The method of recruitment of workers in this industry was full of hardships. Workers were employed throughprofessional recruiters. Workers were not allowed by the planters to leave the tea gardens. A numberof Acts were passed from 1863 onwards to regulate the recruitments. These legislations protected theinterests of the employers more than safeguarding the interests of the workers. The Factories Act waspassed in 1934 and the Mines Act in 1923. The Workmen's Compensation Act 1923 was passed to protectthe interest of the workers. The following Acts have been enacted to promote the conditions of labourand regulate the relation between employer and employee keeping in view the development of industry and national economy:-
1. The Apprentices Act, 1961
2. The Bonded Labour System (Abolition) Act, 1976
3. The Child Labour (Prohibition & Regulation) Act, 1986
4. The Children (Pledging of Labour) Act, 1933
5. The Contract Labour (Regulation & Abolition) Act, 1970
6. The Employees Provident Funds and Misc. Provisions Act,1952
7. The Employees State Insurance Act, 1948
8. The Employers Liability Act, 1938
9. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
10. The Equal Remuneration Act, 1976
11. The Factories Act, 1948
12. The Industrial Disputes Act
13. The Industrial Employment (Standing Orders) Act,1946
14. The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act,1979
15. The Labour Laws (Exemption from Furnishing Returns & Maintaining Registers by CertainEstablishments) Act, 1988
16. The Maternity Benefit Act, 1961
17. The Minimum Wages Act, 1948
18. The Payment of Bonus Act, 1965
19. The Mines Act,1952
20. The Payment of Gratuity Act, 1972
21. The Payment of Wages Act, 1936
22. The Sales Promotion Employees (Conditions of Service) Act, 1976
23. The Shops and Establishments Act, 1953
24. The Trade Union Act, 1926
25. The Workmen's Compensation Act, 1923
The Weekly Holidays Act, 1942Mahatma Gandhi had once said, 'A nation may do without its millionaires and without its capitalists, but a nation can never do without its labour'. In India, a number of labour legislation has been enacted to promote the condition of the labour keeping in view the development of industry and national economy. But for industrial regeneration it is necessary that the partners of the industry must curet heir respective defects. Since independence both legislation and public opinion have done a lot, to better the condition of the workers. At the same time it is the duty of the workers and their organizations to improve the work –efficiency and help in securing better production resulting in greater profits. Prosperity of the industry should be shared by the management with workers and the community at large. Workers are the dominant partners in the industrial undertakings and without their co-operation, good work, discipline, integrity and character, the industry will not be able to produce effective results or profits. If the human element refuses to co-operate, the industry will fail to run. Therefore, the profit of the industry must be shared between employers, workers and community; The Government and the factory owner must completely understand the labour psychology and a change in their outlook and attitude is desired to secure the industrial peace. Nothing should be done under threat or coercion but on a clear understanding that whatever is good and is due to the labour must be given. Industry owners should treat the workers as co-partners. Workers in the country must understand fully that if they desire to secure their due place in the industrial world they must think more in terms of responsibilities and duties. Sabotage and violence of all kinds , bitterness in thought ,word and deed must be eschewed. An improvement in labor regulations will provide an opportunity to accelerate manufacturing growth and development of nation..
The labour enactments in India, is divided into 5 broad categories, viz. Working
Conditions, Industrial Relations, Wage, Welfare and Social Securities.
The enactments are all based upon Constitution of India and the resolutions taken in ILOconventions from time to time.
Indian labour law refers to laws regulating employment. There over fifty national laws
and many more state-level laws. Traditionally Indian Governments at federal and state
level have sought to ensure a high degree of protection for workers through enforcement
of labour laws.
While conforming to the essentials of the laws of contracts, a contract of employment
must adhere also to the provisions of applicable labour laws and the rules contained under
the Standing Orders of the establishment.
Indian labour laws divide industry into two broad categories:
1. Factory
Factories are regulated by the provisions of the Factories Act, 1948 (the said Act). All
Industrial establishments employing 10 or more persons and carrying manufacturing
activities with the aid of power come within the definition of Factory. The said Act
makes provisions for the health, safety, welfare, working hours and leave of workers in
factories. The said Act is enforced by the State Government through their ‘Factory’
inspectorates. The said Act empowers the State Governments to frame rules, so that
the local conditions prevailing in the State are appropriately reflected in the
enforcement. The said Act puts special emphasis on welfare, health and safety of
workers. The said Act is instrumental in strengthening the provisions relating to safety
and health at work, providing for statutory health surveys, requiring appointment of
safety officers, establishment of canteen, crèches, and welfare committees etc. in large
factories.
The said Act also provides specific safe guards against use and handling of hazardous
substance by occupiers of factories and laying down of emergency standards and
measures.
2. The Shops & Establishment Act
The Shops and Establishment Act is a state legislation act and each state has framed its
own rules for the Act. The object of this Act is to provide statutory obligation and rights
to employees and employers in the unauthorized sector of employment, i.e., shops and
establishments. This Act is applicable to all persons employed in an establishment with or
without wages, except the members of the employers’ family.
This Act lays down the following rules:
• Working hours per day and week.
• Guidelines for spread-over, rest interval, opening and closing hours, closed days,
national and religious holidays, overtime work.
• Employment of children, young persons and women.
• Rules for annual leave, maternity leave, sickness and casual leave, etc.
• Rules for employment and termination of service.
The main central laws dealing with labor issues are given below: -
1. Minimum Wages Act 1948
2. Industrial Employment (Standing orders) Act 1946
3. Payment of Wages Act 1936
4. Workmen’s Compensation Act 1923
5. Industrial Disputes Act 1947
6. Employees Provident Fund and Miscellaneous Provisions Act 1952
7. Payment of Bonus Act 1965
8. Payment of Gratuity Act 1972
9. Maternity Benefit Act 1961
Minimum Wages Act 1948
The Minimum Wages Act prescribes minimum wages for all employees in all
establishments or working at home in certain employments specified in the schedule of
the Act. Central and State Governments revise minimum wages specified in the schedule.
The Minimum Wages Act 1948 has classified workers as unskilled, semi-skilled, skilled;
and highly skilled.
Industrial Employment (Standing orders) Act 1946
The Industrial Employment Act requires employers in industrial establishments to clearly
define the conditions of employment by issuing standing orders duly certified. Model
standing orders issued under the Act deal with classification of workmen, holidays, shifts,
payment of wages, leaves, termination etc. Generally, the workers are classified as
• apprentice/trainee;
• casual;
• temporary;
• substitute;
• probationer;
• permanent; and
• fixed period employees
Payment of Wages Act 1936
Under the Payment of Wages Act 1936 the following are the common obligations of the
employer:
• Every employer is primarily responsible for payment of wages to employees. The
employer should fix the wage period (which may be per day, per week or per
month) but in no case it should exceed one month;
• Every employer should make timely payment of wages. If the employment of any
person is being terminated, those wages should be paid within two days of the
date of termination; and
• The employer should pay the wages in cash, i.e. in current coins or currency
notes. However wages may also be paid either by cheque or by crediting in
employee’s bank account after obtaining written consent.
Workmen’s Compensation Act 1923
The employer must pay compensation for an accident suffered by an employee during the
course of employment and in accordance with the Act. The employer must submit a
statement to the Commissioner (within 30 days of receiving the notice) giving the
circumstances attending the death of a worker as result of an accident and indicating
whether the employer is liable to deposit any compensation for the same. It should also
submit an accident report to the Commissioner within seven days of the accident.
Industrial Disputes Act 1947
The Industrial Disputes act 1947 provides for the investigation and settlement of
industrial disputes in an industrial establishment relating to lockouts, layoffs,
retrenchment etc. It provides the machinery for the reconciliation and adjudication of
disputes or differences between the employees and the employers. Industrial undertaking
includes an undertaking carrying any business, trade, manufacture etc.
The Act lays down the conditions that shall be complied before the
termination/retrenchment or layoff of a workman who has been in continuous service for
not less than one year under an employer. The workman shall be given one month’s
notice in writing, indicating the reasons for retrenchment and the period of the notice that
has expired or the workman has been paid, in lieu of such notice, wages for the period of
the notice. The workman shall also be paid compensation equivalent to 15 days’ average
pay for each completed year of continuous service. A notice shall also be served on the
appropriate government.
Employees Provident Funds and Miscellaneous Provisions Act 1952
This Act seeks to ensure the financial security of the employees in an establishment by
providing for a system of compulsory savings. The Act provides for establishments of a
contributory Provident Fund in which employees’ contribution shall be at least equal to
the contribution payable by the employer. Minimum contribution by the employees shall
be 10-12% of the wages. This amount is payable to the employee after retirement and
could also be withdrawn partly for certain specified purposes.
Payment of Bonus Act 1965
The payment of Bonus Act provides for the payment of bonus to persons employed in
certain establishments on the basis of profits or on the basis of production or productivity.
The Act is applicable to establishments employing 20 or more persons. The minimum
bonus, which an employer is required to pay even if he suffers losses during the
accounting year is 8.33% of the salary.
Payment of Gratuity Act 1972
The Payment of Gratuity Act provides for a scheme for the payment of gratuity to all
employees in all establishments employing ten or more employees to all types of
workers. Gratuity is payable to an employee on his retirement/resignation at the rate of 15
days salary of the employee for each completed year of service subject to a maximum of
Rs. 350,000.
Maternity Benefit Act 1961
The Maternity Benefit Act regulates the employment of the women in certain
establishments for a prescribed period before and after child birth and provides certain
other benefits. The Act does not apply to any factory or other establishment to which the
Employees State Insurance Act 1948 is applicable. Every women employee who has
actually worked in an establishment for a period of at least 80 days during the 12 months
immediately proceeding the date of her expected delivery, is entitled to receive maternity
benefits under the Act. The employer is thus required to pay maternity benefits and/or
medical bonus and allow maternity leave and nursing breaks.
Conditions, Industrial Relations, Wage, Welfare and Social Securities.
The enactments are all based upon Constitution of India and the resolutions taken in ILOconventions from time to time.
Indian labour law refers to laws regulating employment. There over fifty national laws
and many more state-level laws. Traditionally Indian Governments at federal and state
level have sought to ensure a high degree of protection for workers through enforcement
of labour laws.
While conforming to the essentials of the laws of contracts, a contract of employment
must adhere also to the provisions of applicable labour laws and the rules contained under
the Standing Orders of the establishment.
Indian labour laws divide industry into two broad categories:
1. Factory
Factories are regulated by the provisions of the Factories Act, 1948 (the said Act). All
Industrial establishments employing 10 or more persons and carrying manufacturing
activities with the aid of power come within the definition of Factory. The said Act
makes provisions for the health, safety, welfare, working hours and leave of workers in
factories. The said Act is enforced by the State Government through their ‘Factory’
inspectorates. The said Act empowers the State Governments to frame rules, so that
the local conditions prevailing in the State are appropriately reflected in the
enforcement. The said Act puts special emphasis on welfare, health and safety of
workers. The said Act is instrumental in strengthening the provisions relating to safety
and health at work, providing for statutory health surveys, requiring appointment of
safety officers, establishment of canteen, crèches, and welfare committees etc. in large
factories.
The said Act also provides specific safe guards against use and handling of hazardous
substance by occupiers of factories and laying down of emergency standards and
measures.
2. The Shops & Establishment Act
The Shops and Establishment Act is a state legislation act and each state has framed its
own rules for the Act. The object of this Act is to provide statutory obligation and rights
to employees and employers in the unauthorized sector of employment, i.e., shops and
establishments. This Act is applicable to all persons employed in an establishment with or
without wages, except the members of the employers’ family.
This Act lays down the following rules:
• Working hours per day and week.
• Guidelines for spread-over, rest interval, opening and closing hours, closed days,
national and religious holidays, overtime work.
• Employment of children, young persons and women.
• Rules for annual leave, maternity leave, sickness and casual leave, etc.
• Rules for employment and termination of service.
The main central laws dealing with labor issues are given below: -
1. Minimum Wages Act 1948
2. Industrial Employment (Standing orders) Act 1946
3. Payment of Wages Act 1936
4. Workmen’s Compensation Act 1923
5. Industrial Disputes Act 1947
6. Employees Provident Fund and Miscellaneous Provisions Act 1952
7. Payment of Bonus Act 1965
8. Payment of Gratuity Act 1972
9. Maternity Benefit Act 1961
Minimum Wages Act 1948
The Minimum Wages Act prescribes minimum wages for all employees in all
establishments or working at home in certain employments specified in the schedule of
the Act. Central and State Governments revise minimum wages specified in the schedule.
The Minimum Wages Act 1948 has classified workers as unskilled, semi-skilled, skilled;
and highly skilled.
Industrial Employment (Standing orders) Act 1946
The Industrial Employment Act requires employers in industrial establishments to clearly
define the conditions of employment by issuing standing orders duly certified. Model
standing orders issued under the Act deal with classification of workmen, holidays, shifts,
payment of wages, leaves, termination etc. Generally, the workers are classified as
• apprentice/trainee;
• casual;
• temporary;
• substitute;
• probationer;
• permanent; and
• fixed period employees
Payment of Wages Act 1936
Under the Payment of Wages Act 1936 the following are the common obligations of the
employer:
• Every employer is primarily responsible for payment of wages to employees. The
employer should fix the wage period (which may be per day, per week or per
month) but in no case it should exceed one month;
• Every employer should make timely payment of wages. If the employment of any
person is being terminated, those wages should be paid within two days of the
date of termination; and
• The employer should pay the wages in cash, i.e. in current coins or currency
notes. However wages may also be paid either by cheque or by crediting in
employee’s bank account after obtaining written consent.
Workmen’s Compensation Act 1923
The employer must pay compensation for an accident suffered by an employee during the
course of employment and in accordance with the Act. The employer must submit a
statement to the Commissioner (within 30 days of receiving the notice) giving the
circumstances attending the death of a worker as result of an accident and indicating
whether the employer is liable to deposit any compensation for the same. It should also
submit an accident report to the Commissioner within seven days of the accident.
Industrial Disputes Act 1947
The Industrial Disputes act 1947 provides for the investigation and settlement of
industrial disputes in an industrial establishment relating to lockouts, layoffs,
retrenchment etc. It provides the machinery for the reconciliation and adjudication of
disputes or differences between the employees and the employers. Industrial undertaking
includes an undertaking carrying any business, trade, manufacture etc.
The Act lays down the conditions that shall be complied before the
termination/retrenchment or layoff of a workman who has been in continuous service for
not less than one year under an employer. The workman shall be given one month’s
notice in writing, indicating the reasons for retrenchment and the period of the notice that
has expired or the workman has been paid, in lieu of such notice, wages for the period of
the notice. The workman shall also be paid compensation equivalent to 15 days’ average
pay for each completed year of continuous service. A notice shall also be served on the
appropriate government.
Employees Provident Funds and Miscellaneous Provisions Act 1952
This Act seeks to ensure the financial security of the employees in an establishment by
providing for a system of compulsory savings. The Act provides for establishments of a
contributory Provident Fund in which employees’ contribution shall be at least equal to
the contribution payable by the employer. Minimum contribution by the employees shall
be 10-12% of the wages. This amount is payable to the employee after retirement and
could also be withdrawn partly for certain specified purposes.
Payment of Bonus Act 1965
The payment of Bonus Act provides for the payment of bonus to persons employed in
certain establishments on the basis of profits or on the basis of production or productivity.
The Act is applicable to establishments employing 20 or more persons. The minimum
bonus, which an employer is required to pay even if he suffers losses during the
accounting year is 8.33% of the salary.
Payment of Gratuity Act 1972
The Payment of Gratuity Act provides for a scheme for the payment of gratuity to all
employees in all establishments employing ten or more employees to all types of
workers. Gratuity is payable to an employee on his retirement/resignation at the rate of 15
days salary of the employee for each completed year of service subject to a maximum of
Rs. 350,000.
Maternity Benefit Act 1961
The Maternity Benefit Act regulates the employment of the women in certain
establishments for a prescribed period before and after child birth and provides certain
other benefits. The Act does not apply to any factory or other establishment to which the
Employees State Insurance Act 1948 is applicable. Every women employee who has
actually worked in an establishment for a period of at least 80 days during the 12 months
immediately proceeding the date of her expected delivery, is entitled to receive maternity
benefits under the Act. The employer is thus required to pay maternity benefits and/or
medical bonus and allow maternity leave and nursing breaks.
