Download Labour Laws in India: An Overview of Key Acts and Provisions and more Summaries Labour Law in PDF only on Docsity!
Labour Policies
The Labour Policies for Small Scale Industries is governed by comprehensive laws. The following laws and policies are applicable for Small Scale Industries in India: Apprentices Act, 1961 The Bidi and Cigar Workers (Conditions of Employment) Act, 1966 Bonded Labour System (Abolition) Act, 1976 Child Labour (Prohibition & Regulation) Act, 1986 The Children (Pledging of Labour) Act, 1933 The Contract Labour (Regulation & Abolition) Act, 1970 The Employees Provident Funds and Misc. Provisions Act, 1952 Employees State Insurance Act, 1948 Employers Liability Act, 1938 Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 Equal Remuneration Act, 1976 The Factories Act, 1948 The Industrial Disputes Act The Industrial Employment (Standing Orders) Act, The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 Labour Laws (Exemption from Furnishing Returns & Maintaining Registers by Certain Extablishments) Act, 1988 Maternity Benefit Act, 1961 The Minimum Wages Act, 1948 The Payment of Bonus Act, 1965 The Payment of Gratuity Act, 1972 The Payment of Wages Act, 1936 The Sales Promotion Employees (Conditions of Service) Act, 1976 The Shops and Establishments Act, 1953 The Trade Union Act, 1926 Workmen’s Compensation Act, 1923 The Weekly Holidays Act, 1942 There are certain reforms in labour laws by certain states, which are illustrated below: Andhra Laws Assam Laws Goa Laws Gujarat Laws Karnataka Laws Maharashtra Laws Rajasthan Laws Tamilnadu Laws Uttar Pradesh Laws West Bengal Laws
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The Factories Act, 1948
Objectives To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories. To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory. Scope and coverage Regulates working condition in factories. Basic minimum requirements for ensuring safety, health and welfare of workers. Applicable to all workers. Applicable to all factories using power and employing 10 or more workers, and if not using power, employing 20 or more workers on any day of the preceding 12 months. Main provisions Compulsory approval, licensing and registration of factories. Health measures. Safety measures. Welfare measures. Working hours. Employment of women and young persons. Annual leave provision. Accident and occupational diseases. Dangerous operations. Penalties. Obligations and rights of employees. When to consult and refer On starting a factory. Throughout the life of the factory.
The Minimum Wages Act, 1948
Objectives To determine the minimum wages in industry and trade where labour organisations are non-existent or ineffective.
The Employees Provident Funds and Misc. Provisions Act, 1952
Objectives To make provisions for the future of the industrial worker after he retires or for his dependents in the case of his early death. Compulsory Provident Fund Family Pension Deposit linked insurance Scope and coverage Application to factories and establishments employing 20 or more persons. Can be made applicable by central government to establishments employing less than 20 persons or if the majority of employees agree. Excludes establishments employing 50 or more persons or 20 or more persons but less than 50 persons, until the expiry of three years in the case of the former, and five years in the case of the former, and five years in the case of the latter, from the date of setting up of establishment. Applicable to all persons who are employed directly or indirectly through contractors in any kind of work. Eligibility Employees drawing pay not exceeding Rs. 3500/- ($78.37) per month. Benefits Apart from terminal disbursal of non-refundable withdrawals for Life Insurance Policies House building Medical treatment Marriage Higher education Family pension Retirement-cum-withdrawal benefits Deposit linked insurance Amount equal to the average balance in Provident Fund of deceased subject to a maximum of Rs. 25,000/- ($559.79).
Workmen’s Compensation Act, 1923
To provide compensation for workmen in cases of industrial accidental / occupational diseases in the course of employment resulting in disablement or death. Coverage for persons employed in Factories, Mines, Plantations, the Railways and others mentioned in Schedule II of the Act. Benefits
Compensation for Death
- Minimum - Rs. 20,000 ($447.83) Maximum - Rs. 1,14,000 ($2,552.62) Compensation for Permanent disablement
- Minimum - Rs. 24,000 ($537.4) Maximum - Rs. 70,000 ($1567.4) Temporary disablement
- 50% of wages for a maximum period of 5 years.
The Contract Labour (Regulation & Abolition) Act, 1970
Not to be required to work beyond 9 hours between 6 A.M. and 7 P.M. with the exception of midwives and nurses in plantations.
The Inter-state Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979
Separate toilets and washing facilities to be provided in employment covered by the 3rd and 6th laws.
Maternity Benefit Act, 1961
Maternity benefits to be provided on completion of 80 days working. Not required to work during six weeks immediately following the day of delivery or miscarriage. No work of arduous nature, long hours of standing likely to interfere with pregnancy/normal development of foetus or may cause miscarriage or likely to affect health to be given for a period of one month immediately preceding the period of six weeks before delivery. On medical certificate, advance maternity benefit to be allowed. Rs. 250 ($5.6) as medical bonus to be given in case when no prenatal confinement and post-natal care is provided free of charge.
Equal Remuneration Act, 1976
Payment of equal remuneration to men and women workers for same or similar nature of work protected under the Act and also under the provisions at ISMW Act, mentioned above.
Employees State Insurance Act, 1948
Objective To provide for health cover, Medical care and Cash benefits for Sickness Maternity Employment injury Pensions to dependents in case of Death (or) Employment injury Eligibility Employees drawing wages not exceeding Rs. 3000/- ($67.17) per month Benefits Compensation for Death Minimum - Rs. 20,000 ($447.83 Maximum) - Rs. 1,14, ($2552.62) Compensation for Permanent disablement Minimum - Rs. 24,000 ($537.4) Maximum
- Rs (70,000) $1,567. Temporary disablement 50% of wages for a maximum period of 5 years.
The Payment of Bonus Act, 1965
Objectives To provide statutory obligations for payment of bonus to persons employed in certain establishments on the basis of profits or productivity. Scope and Coverage Applicable all over India to factories under the Factories Act and to other establishments employing 20 or persons on any day during a year. Government can extend its coverage to establishments employing between 10 and 20 workers. Covers all workers including supervisors, managers, administrators, technical and clerical staff employed on salary or wages not exceeding Rs 2,500 ($55.97) per month. Main Provision Eligibility for bonus. Payment of minimum and maximum bonus. Time limit for payment of bonus. Deductions from bonus. Computation of gross profits and available allocable surplus. Rights of employees.
When to Consult And Refer When the factory if registered under the Factories Act. When the number of employees in the establishment reaches 20 or above. When calculating the bonus.
The Shops and Establishments Act, 1953
Objectives To provide statutory obligation and rights to employees and employers in the unorganised sector of employment, i.e., shops and establishments. Scope and Coverage A state legislation; each state has framed its own rules for the Act. Applicable to all persons employed in an establishments with or without wages, except the members of the employer's family. State government can exempt, either permanently or for a specified period, any establishments from all or any provisions of this Act. Main Provisions Compulsory registration of shop/establishment within thirty days of commencement of work. Communications of closure of the establishment within 15 days from the closing of the establishment. Lays down the hours of work per day and week. Lays down guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work. Rules for 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. Maintenance of registers and records and display of notices. Obligations of employers. Obligations of employees. When to Consult And Refer At the time of start of an enterprise. When framing personnel policies and rules.
The Trade Unions Act, 1926
Rights of appeal. Settlements in outside conciliation. Notice of change in employment conditions. Protection of workmen during pendency of proceedings Strike and lockout procedures. Lay-off compensation. Retrenchment compensation. Proceedings for retrenchment. Compensation to workmen in case of transfer of undertakings. Closure procedures. Reopening of closed undertakings. Unfair labour practices. Recovery of money due from employer. Penalties. Obligations and rights of employees. When to consult and refer When a dispute arises with the workers' union. When you plan changes in employment conditions. When there is a strike. When there is a lockout. When retrenchment of workmen. When undertaking is being transferred On closure of an establishment. On re-opening establishment.
