https://google.comLabor laws in India not only regulate employment terms but also provide labor rights to the employees. They specifically target the employer-employee relationship, guarantee legal rights to the workers, and promote workers' interests. The main aim of labor laws is to address the demands and needs of employees. These laws work towards bringing specific improvement in areas like operating conditions, wages, working hours, protection of rights, etc., to the employees.
The Ministry also has the liability to safeguard the welfare of those who constitute the underprivileged and the trivial classes of society. They particularly have to create a strong work atmosphere for higher production and efficiency. The Ministry tries to attain this intention bypassing and applying labor laws standardizing the provisions and conditions of service and employment of employees.
Labor Laws can be broadly classified into two major categories as below:
We are defining the relationship between employers, employees, and trade unions.
They are determining the laws relating to the rights of employees at their place of work.
Major laws that deal with labor issues, especially concerning the rights of workers, are as below.
- Industrial Disputes Act of 1947
- Workmen's Compensation Act of 1923
- Minimum Wages Act of 1936
- Payment of Bonus Act, 1965
- Payment of Gratuity 1972
- Payment of Wages Act, 1936
- Child Labor (Prohibition and Regulation) Act, 1986
- Trade Unions Act, 1926
- Maternity Benefit Act, 1961
- Factories Act, 1948.
- The Equal Remuneration Act, 1976
- The Employee's State Insurance Act, 1948
- Labor Law: Things to Know
- The Industrial Disputes Act, 1947
This Act came into effect in 1947 and was provisioned for the formation of works committees and Industrial tribunals, for promoting industrial peace. The committee consists of employers as well as representatives of workers. The main aim is to enhance communication and the relationship between employers and employees; and to provide solutions for their disputes. This Act provides not only for the investigation and settlement of industrial disputes, but also focuses on the mechanism essential for settlement of differences between the employers' and the employees'. It has the right to lay down conditions to be observed before any termination or layoff is affected. Specific conditions before deletion like one month notice and 15 days average pay as compensation are some of the rules of this Act.
Workmen's Compensation Act of 1923
This Act provides for issues related to compensation in case of any injuries arising out of or in the course of employment. Accordingly, if the injury is deadly, resulting in an employee's death, then his dependents have to be compensated. This Act also lays down the rates of compensation and the mode of calculating it.
Minimum Wages Act of 1936
Minimum wages for the employees is specified in this Act. Only the central and state government has the rights to revise minimum wages specified in the schedule.
Payment of Wages Act 1936
This Act concentrates on the time limits to be set, within which the wages should be dispersed to the employees. Only deductions authorized by the Act should be deducted.
Employees Provident Fund and Miscellaneous provisions Act 1952
This Act ensures the employee's financial security by providing a system of compulsory savings. It states that the establishment should also contribute the same amount as that made by the employee. As per the Act, 10-12% of the total wages should be contributed and is payable after retirement or as an advance in case of any emergency.
Payment of Bonus Act 1965
This Act states that establishments that have more than 20 employees must pay a bonus to their employees. The amount is calculated either on profits made or on a productivity basis.
Payment of Gratuity Act 1972
Gratuity Act applies to those factories and other establishments that employ ten or more persons. When an employee completes five years of service, then he has entitled to gratuity at the rate of 15 days salary for every year of service completed.
Maternity Benefit Act 1961
This Act provides for maternity and other benefits to female employees. It regulates the employment of women for a certain period prior to and following child-birth.
Industrial Employment Act of 1946
This Act requires that employers define the terms and conditions of employment and issue orders which are certified. This order should cover aspects relating to holidays, shifts, wages payment, leaves, etc.
As soon as one completes the registration of a company in India, it would be wise enough to appoint a professional who is aware of all the laws connected with labor so that no problems arise once the company starts its operations.
Several of the laws pointed out above relate to the unstructured sector also. Sometimes a separate notice may be obligatory to widen the relevance of particular labor law to a fresh sector. It is helpful to perceive that some portion of legislation are more universal in character and effect across the panel to all sectors.
