LABOUR LAWS

What is Labour Law? Wikipedia, the internet encyclopedia defines labour law as Labour Law is the body of laws, administrative rulings, and precedents which address the relationship between and among employers, employees, and labor organizations, often dealing with issues of public law . The terms Labour Laws and Employment Laws, are often interchanged in the usage. Origins of Labour Laws Labour laws emerged when the employers tried to restrict the powers of workers' organisations and keep labour costs low. The workers began demanding better conditions and the right to organise so as to improve their standard of living. Employer s costs increased due to workers demand to win higher wages or better working conditions. This led to a chaotic situation which required the intervention of Government. In order to put an end to the disputes between the ever-warring employer and employee, the Government enacted many labour laws.

LABOUR LAWS
Classification of Various Labour Laws: Labour Laws can be classified into the following eight categories: i) Laws related to Industrial Relations ii) Laws related to Wages iii) Laws related to Specific Industries iv) Laws related to Equality and Empowerment of Women v) Laws related to Deprived and Disadvantaged Sections of the Society vi) Laws related to Social Security vii) Laws related to Employment & Training viii) Others

LABOUR LAWS
Laws related to Industrial Relations 1 The Trade Unions Act, 1926 2 The Industrial Employment (Standing Orders) Act, 1946 The Industrial Employment (Standing Orders) Rules, 1946 3 The Industrial Disputes Act, 1947 Laws related to Wages 1 The Payment of Wages Act, 1936 The Payment of Wages Rules, 1937 2 The Minimum Wages Act, 1948 The Minimum Wages (Central) Rules, 1950 3 The Working Journalist (Fixation of Rates of Wages) Act, 1958 Working Journalist (Conditions of service) and Miscellaneous Provisions Rules, 1957 4 The Payment of Bonus Act, 1965 The Payment of Bonus Rules, 1975

LABOUR LAWS
Laws related to Social Security 1 The Workmen s Compensation Act, 1923 2 The Employees State Insurance Act, 1948 3 The Employees Provident Fund & Miscellaneous Provisions Act, 1952 4 The Payment of Gratuity Act, 1972 Laws related to Specific Industries (few selected acts given below) 1 The Factories Act, 1948 2 The Contract Labour (Regulation & Abolition) Act, 1970 3 The Shops and Establishments Act

LABOUR LAWS
Laws related to Equality and Empowerment of Women 1 The Maternity Benefit Act, 1961 2 The Equal Remuneration Act, 1976

FACTORIES ACT, 1948

Factories Act, 1948: The act applies to all establishments employing 10 or more workers where power is used and 20 or more workers where power is not used, and where a manufacturing process is being carried. The Act envisages four classes of persons, viz., Adult, Adolescent, child and young. An adult is a person who has completed his 18th year Adolscent who has completed 15th yr but not 18 Child is one who has not completed 15th year A young person is either a child or an adolescent

FACTORIES ACT, 1948

The act contains among other, detailed provisions about The appointment of labour welfare officer The health of workers The safety of workers The welfare of workers Proper working hours and leave of workers a) Labour Welfare Officer: Section 49 of the Factories Act provides that in every factory with 500 or more workers a welfare officer should be appointed. The welfare officer should possess: i) University Degree ii) degree or diploma in social service, social work or social welfare from a recognised institution, iii) Adequate knowledge of the langauge spoken by the majority of workers in the area.

FACTORIES ACT, 1948

A Welfare Officer is expected to render 3 different types of functions viz., labour welfare, labour administration and labour relations. Labour Welfare Advice and assistance in implementing statutory provisions related to worker s health, safety and welfare. Labour Administration Maintenance of discipline, wage and salary administration, etc., Labour Relations Settlement of grievances, administration of standing orders, increase in productive efficiency, promotion of harmony and peaceful settlement of disputes.

FACTORIES ACT, 1948

b) Health of Workers: Health provisions are contained in Chapter III of the Factories Act, 1948. Every factory should make effective arrangements for: - Cleanliness - Disposal of wastes and effluents - Ventilation and temperature - Freedom from dust and fume - Artificial humidification - Prevention of overcrowding - Lighting - Drinking water - Separate latrines and urinals for male and female workers - Spitoons

FACTORIES ACT, 1948

c) Safety of Workers Safety provisions are made in Chapter IV and IV-A of the Factories Act. These relate to: - Effective fencing of machinery - Suitable device for cutting off power in emergencies - Construction of strong hoists and lifts - Maintenance of floors and stairs - Adherence to separate weight standards of loads to be carried by men, women and children. - Suitable precautions against excessive light, fumes, gases and fire. - Safety of building and machinery - Prohibition of child or an adolescent to work on or near machinery in motion. - Appointment of Safety Officer.

FACTORIES ACT, 1948

A notable feature of the present act (amended in 1987 following the Bhopal Gas Tragedy) is the special Chapter (IVA) on hazardous processes providing for: a) The constitution of the Site Appraisal Committee for advising the State Govt on application for grant of permission for the initial location of a factory involving hazardous processes of a factory. b) The disclosure by the occupier of all information regarding dangers and health hazards and measures taken by him to control these hazards. c) The maintenance of accurate and up-to-date health records of the workers in the factory. d) The appointment of an enquiry committee by the Central Govt to inquire into the standards of health and safety observed in the factory. e) The laying down of emergency standards of safety where existing standards are inadequate.

FACTORIES ACT, 1948

Welfare of Workers:
Chapter V of the Factories Act contains provisions about the welfare of workers. These are as follows: 1. There shall be separate and adequately screened washing facilities for male and female workers. 2. There shall be suitable places provided for clothing not worn during working hours and for drying wet clothes. 3. Restroom, or to sit and take rest if they have to work in a standing position. 4. First-aid boxes and cupboards to be provided. 5. Canteen shall be provided if there are more than 250 workers. 6. Sufficiently lighted and ventilated lunch room if the number of workers is 150. 7. Adequately lighted and ventilated room for use of children below 6 years (creche) of women workers if their number exceeds 30.

FACTORIES ACT, 1948

Working Hours and Leave: Chapters VI, VII and VIII of the Factories Act respectively provide for working hours of adults, employment of young persons and annual leave with wages. Some important provisions are as follows: 1.No adult shall be required or allowed to work in a factory for more than 48 hours in any week and 9 hours in a day. 2. No woman shall be employed in any factory except between 6.a.m and 7.p.m. 3. Where a worker works for more than 9 hours in any day or more than 48 hrs in a week, he shall be entitled to over time wages of twice as that of his ordinary wages.

INDUSTRIAL DISPUTES ACT, 1947

In India, the Industrial Disputes Act, 1947 is the main legislation for investigation and settlement of all industrial disputes. The Act enumerates the contingencies when a strike or lock-out can be lawfully resorted to, when they can be declared illegal or unlawful, conditions for laying off, retrenching, discharging or dismissing a workman, circumstances under which an industrial unit can be closed down and several other matters related to compensation of industrial employees and employers.

INDUSTRIAL DISPUTES ACT, 1947

The basic objectives of the act are: To provide a suitable machinery for the just, equitable and peaceful settlement of industrial disputes. To promote measures for securing and preserving amity and good relations between employers and employees. To prevent illegal strikes and lockouts. To provide relief to workers against layoffs, retrenchment, wrongful dismissal and victimisation. To promote collective bargaining. To ameliorate the conditions of workers. To avoid unfair labour practices.

INDUSTRIAL DISPUTES ACT, 1947

A. Coverage: The Act applies to all workmen employed in any private or government owned industry to do any manual, clerical, skilled, unskilled, technical or supervisory job excluding those drawing wages exceeding Rs.1600 per month. B. Administration: The Act is administered by the judicial machinery of Labour Courts, Industrial Tribunals and National Tribunals set up under the act. C. Compensation Benefits: A retrenched worker is entitled to compensation at the rate of 15 days average earnings for every completed years of service or part thereof. Compensation in case of closure of undertakings is also payable at the same rate. In event of layoff compensation equal to 50% of total basic wages and D.A for the period involved or maximum of 45 days in a year.

INDUSTRIAL DISPUTES ACT, 1947

The act also provides for appointment of Conciliation Officers/BoardofConciliation/CourtofInquiry/LabourCourts /Industrial Tribunals/National Industrial Tribunals, as occasion arises. (Refer Industrial Relations ppt) The Act also makes it obligatory for an employer to set up a 'Grievance Settlement Authority (GSA)' in an industrial establishment in which fifty or more workers have been employed in the preceding twelve months. This authority shall have the responsibility to settle industrial disputes concerning an individual worker employed in that establishment. No reference can be made under the Act to Conciliation Boards, Labour Courts or Industrial Tribunals, unless the dispute has first been the subject of a decision of a Grievance Settlement Authority.

TRADE UNIONS ACT, 1926

The Act provides for the registration of trade unions and defines the law relating to such unions. A trade union can be a either a union of workmen or of employers. Section 21(A)(1)(i) of the act provides that a person who has attained the age of 15 years may become members of the registered trade union. The act also prescribes the primary objectives for which a trade union may be formed: a) To regulate the relations i) between employers ii) between workmen or iii) between employers and workmen. b) To impose restrictive conditions on the conduct of any trade or business.

TRADE UNIONS ACT, 1926

Other objectives of the act include: 1) Registration and recognition of Trade Unions
(refer ppt on Industrial Relations)

2) Cancellation of Registration
According to Regulation 6 of Central Trade Unions regulations, 1938, the withdrawal or cancellation of registration has to be a) Approved by a General meeting of a trade union b) It is Suo moto, if the registrar is satisfied that the certificate has been obtained by fraud or mistake or that the trade union has ceased to exist. c) If the registrar is satisfied that a registered trade union ceases to have the requisite number of members.

TRADE UNIONS ACT, 1926

3) Appeal Any person aggrieved a) by any refusal of the Registrar to register a trade union or b) by the withdrawal or cancellation of a certificate of registration, may prefer an appeal within 60 days of the date on which the Registrar pass the order. 4) Rights and Liabilities of Registered Trade Unions I) A registered union has a right to maintain general funds for: a) Payment of salaries, allowances and expenses to office bearers b) Payment of expenses for its administration including audit of account. c) Prosecuting or defending legal action to which the union or any of its members is a party d) Conduct of Trade disputes on behalf of the trade union e) Compensation of members for loss arising out of trade disputes. f) Allowance to members or their dependants on account of death, old age, sickness, accidents or unemployment of such members.

TRADE UNIONS ACT, 1926

II) A registered trade union may constitute a separate fund for political purposes (spending on election campaign, or candidature for elections, holding political meetings etc.,) from contributions separately levied for or made to that fund. The fund is mainly voluntary and not compulsory. III) Disqualification of office-bearers if he is below 18 years or has been convicted by a court in India. IV) The act provides that not more than 1/3 of the total number of office bearers can be outsiders. V) Immunity from criminal conspiracy and civil action when any act done furthers the industrial dispute or interferes with trade, business or employment of another person.

SOCIAL SECURITY
The following are the 9 components of Social Security: a) Medical Care b) Sickness benefit c) Unemployment benefit d) Old-age benefit e) Employment injury benefit f) Family benefit g) Maternity benefit h) Invalidity benefit i) Survivor s benefit

WORKMEN S COMPENSATION ACT, 1923

A. Coverage: This act covers all workmen employed in factories, mines, plantations, transport undertakings, construction work, railways,ships, circus and other hazardous occupations specified in schedule II of the act. It does not apply to members of the Armed forces, casual workers and workers covered by the ESI Act,1948. B. Administration: The act is administered by the State Government which appoints commissioners for this purpose under Sec 20 of the act. C. Benefits: Under the Act, compensation is payable by the employer to a workman for all personal injuries caused to him by accident arising out of and in the course of his employment which will disable him for more than 3 days.

WORKMEN S COMPENSATION ACT, 1923

If the workman dies, the compensation is paid to his dependants. The Act distinguishes between three types of injuries: 1) Permanent Partial Disablement less than 100% loss of earning capacity. 2) Permanent Total Disablement sum of PPD or more than 100% loss of earning capacity. 3) Temporary Disablement temporary loss of earning capacity. The amount of compensation payable is: a) 50% of the workman s monthly wages multiplied by the relevant factor (As given in Schedule IV varies with age of worker at the time of accident) or Rs.50000 whichever is more in case of death. b) 60% of the workman s monthly wages multiplied by relevant factor or Rs.60000 whichever is more in case of PTD.

WORKMEN S COMPENSATION ACT, 1923

c) Such proportion of the compensation payable for PTD as is specified in loss of earning capacity in part II of schedule I in case of PPD. d) 25% of monthly wages payable every half month during disablement or during a period of 5 years whichever is shorter in case of temporary disablement total or partial. D. Sources of Funds: All compensation under the Act is payable by the employer, who may insure against the liability with a private insurance company.

EMPLOYEES STATE INSURANCE ACT, 1948

A. Coverage: This act covers all workers (whether manual, supervisory or salaried employees), whose wages do not exceed Rs.7500 per month and who are employed in factories. B. Administration: The act is administered by the E.S.I Corporation, an autonomous body consisting of representatives of the Central and State Govt, employers, employees and medical professionals. The Director General, ESI Corporation enforces the act. C. Benefits: The Act, which provides for a system of compulsory insurance, is a landmark in the history of social security legislation in India. An insured person is entitled to receive the following benefits:

EMPLOYEES STATE INSURANCE ACT, 1948

1. Medical Benefit: An insured person or a member of his family who requires medical treatment is entitled to receive medical benefit free of charge. Such medical benefit may be given either in the form of out-patient treatment or as in-patient treatment in a hospital run by ESIC or the State Govt. The present ceiling on medical expenditure is Rs.600 per insured person. 2. Sickness Benefit: An insured person who is sick, is also entitled to get sickness benefit at the standard benefit rate (specified in Rule 54 of ESI Rules, 1950), corresponding to his average daily wages. 3. Maternity Benefit: An insured woman is entitled to receive maternity benefit (which is twice the sickness benefit rate) during a period of 12 weeks of which 6 weeks precedes the date of confinement. 4. Disablement Benefit: Every insured person is entitled to

EMPLOYEES STATE INSURANCE ACT, 1948

receive disablement benefit for employment injury caused by accident or an occupational disease arising out and in the course of employment. The act 3 fold classification of injuries in the same way as Workmen s Compensation Act. The manner in which the disablement benefit has to be calculated is in Rule 57 of Employee s State Insurance (Central) Rules, 1950. 5. Dependant Benefit: When a person dies due to accident at work place, his dependants i.e his widow, legitimate (or adopted) sons and legitimate unmarried daughters get this benefit according to the provisions of Rule 58. Son upto 18 years and daughter upto 18 years (or when she gets married and wife until remarriage.

EMPLOYEES STATE INSURANCE ACT, 1948

6. Funeral Benefit: The eldest surviving member of the family of an insured person who has died is entitled to receive payment for the expenditure incurred on funeral no exceeding Rs.1500. The amount shall be claimed within 3 months of death. Following additional points to be noted: 1. When a person is entitled to any of the benefits provided in this act, he shall not be entitled to receive any similar benefit under any other act. 2. Any insured person shall not be entitled to receive for the same period: a) Both sickness benefit and maternity benefit b) Both sickness benefit and temporary disablement benefit c) Both maternity benefit and temporary disablement benefit.

EMPLOYEES STATE INSURANCE ACT, 1948

D. Sources of Funds: The act provides for setting up of the ESI Fund from the contributions received from employers and employees and government grants. Employer Contribution: 4.75% of the wage bill and employee contribution is 1.75%.

The Employees Provident Funds and Miscellaneous Provisions Act, 1952

A. Coverage: The act applies to every establishment which the Central Government notifies in the Official Gazette and in which 20 or more persons are employed. The Central Government may by notification in Official Gazette extend the provisions of the Act to any establishment employing even less than 20 persons. The Govt can also grant exemption to any employer who wants to manage and set up his own PF Trust provided the rate of returns has to be the same as that of PF office. B. Administration: The Employees PF and Pension schemes framed under the Act are administered by a tripartite central board of trustees consisting of representatives of employers, employees and persons nominated by govt.

The Employees Provident Funds and Miscellaneous Provisions Act, 1952

C. Benefits: The act provides for 3 types of benefits viz., provident fund, pension and deposit-linked insurance. i) Under the PF scheme an employee can avail himself of nonrefundable withdrawals or take advances from his PF a/c for construction of house, sickness, marriage of self/dependants, higher education of his children, higher education of his children etc., ii) Superannuation/Retirement/Short Service Pension: An employee is entitled to: a) Superannuation pension if he has rendered eligible service of 20 years or more and retires on attaining 58 years of age. b) Retirement pension if he has rendered eligible service of 20 years or more and retired before attaining 58 yrs of age. c) Short service pension if he has rendered eligible service of 10 yrs or more or not less than 20 yrs.

The Employees Provident Funds and Miscellaneous Provisions Act, 1952

iii) Widow Pension: In the case of an employee s death in service or death after superannuation a reduced amount of monthly pension is payable to his widow. It will be equal s to employee s pension in the former case and 50% of employee s pension in the latter case. It is paid up to widow s death or remarriage. If there are 2 or more widows, the eldest will be paid. iv) Disablement Pension: An employee who is permanently and totally disabled is also entitled to pension for lifetime even when he is not rendered the pensionable service. v) Children Pension: This is paid in addition to widow pension to each minor child upto 2 at the rate of 25% of widow pension till the minor is 25 yrs of age. In case of female child it is payable till her marriage or attaining 25 yrs of age.

The Employees Provident Funds and Miscellaneous Provisions Act, 1952

v) Orphan Pension: This is payable to surviving minor orphan children (up to 2) till they attain the age of 25 years. The amount is 75% of monthly widow pension to each child. In case of a female child the pension is payable till her marriage or attaining the age of 25 yrs whichever is earlier. D. Sources of Funds: PF - The employee and employer have to contribute 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any), subject to a maximum of Rs.6500 per month. Pension - Of employer s share of contribution 8.33% is to be remitted to the pension fund. The central govt also contributes 1.16% of total emoluments. Deposit-linked insurance Employer should pay 0.5% of total wages subject to ceiling of Rs.6500 per month. Given to depends after the death of the person.

The Payment of Gratuity Act, 1972

A. Coverage: The Act applies to every factory, mine, oilfield, plantation, port and railway company and to every shop or establishment on which 10 or more persons are employed. The Act makes all persons employed in the above establishments eligible for gratuity irrespective of their wages. B. Administration: The act is administered by the Chief Labour Commissioner (Central) if centre is the appropriate govt or by State Labour Commssioner if the state is the appropriate govt. C. Benefits: Under the act gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years, except due to death or disablement.

The Payment of Gratuity Act, 1972

Gratuity is payable at the rate of 15 days wages based on the rate of wages last drawn by the employee for every completed year of service, but the amount of gratuity payable shall not exceed Rs.3.5 lakhs. D. Source of Funds: Under the Act gratuity is payable entirely by the employer. For this purpose he is required to obtain i) An insurance with LIC or ii) To establish a gratuity fund.