Labour law in India, sometimes also referred to as employment law, comes under the concurrent list in the constitution of India, that is, both central and state governments can enact legislation over it. However, certain aspects of the law come exclusively under the central government’s jurisdiction. The history of labour laws in India can be traced back to the British era when the first law related to labour was enacted.
According to a labour law consultant, rules and regulations related to labour and employment are constantly evolving to adapt to the fast changing economic environment. With advancement in technology and changes in the workplace environment, and the mobility of labour, many amendments have been made in the original labour laws. Also, with the opening up of the Indian economy in the early nineties, many multinational companies have set up facilities in India which has necessitated several changes in the existing labour laws to conform to the global standards set by the international Labour Organisation. Further, the government’s endeavour to make the business environment in India investor friendly and its stress on ease of doing business in the country, has led several changes being brought about in the labour & best law firm in India.
International Labour Organisation, or the ILO, is an international body under the United Nations whose mandate is to promote decent work environment and social justice. It’s a tripartite agency that was set up in 1919 to set global labour standards. It has 187 member countries whose governments, employers and employees come together to discuss, debate and set international labour standards. In this article here, we will discuss some of the most important labour and employment laws in India.
Labour and employment Laws in India
Laws and regulations in India are quite different from that of other major countries. It has its own distinctive features. In India there no single code on all aspects of labour and employment laws. As mentioned earlier, both central and state governments have the power to legislate on matters of labour relations and employment which has led to many complexities. The laws vary depending on the sector, industry, size of the organisation, type of work, wages, etc. Some laws are enacted exclusively by the central government whereas others are in the concurrent list.
Some important labour and employment laws in India are discussed below.
Laws on Industrial Relations
- Industrial Disputes Act 1947: this act relates to any dispute between the employers and the workers, or between the workmen.
- Trade Unions Act, 1926: this act provides for the registration of trade unions and protection of the rights.
Laws on Wages
- Minimum Wages Act 1948: this act is concerned with fixing of minimum wages under certain categories of employment. It is the prerogative of the state governments to fix minimum wages in certain employment conditions.
- Payment of Wages Act 1936: it regulates and ensures the timely payment of wages to certain class of employees.
Social Security Laws
- Employees Provident Funds and Miscellaneous Provisions Act 1952: this act applies to all establishments with 20 or more employees. It mandates such establishments to make provisions for provident fund, pension fund and insurance under the central government schemes.
- Employees’ State Insurance Act 1948: it ensures that the employees of establishments that have 10 or more workmen who draw wages less than Rs15000 are provided health and life insurance benefits.
- Payment of Gratuity Act 1972: the gratuity act ensures that employees of all such organisations as described under this law who have completed five in service are paid gratuity as a reward for long term association or retirement benefit.
Working hours, Conditions of Service, and Employment
- Factories Act 1948: applicable to all factories employing more than 10 persons, it stipulates the maximum working hours and overtime. It also ensures that there is provision for pure drinking water and clean urinals.
- Industrial Employment Act: under this law all industrial establishments with more than 100 workers has to publish clearly defined terms and conditions of employment and service rules.
- Shops and Establishments Act: this act comes under the state governments and defines the rules for registration and the working condition and wages of the employees.
Other laws under this category are Contract Labour Act 1970, Employees Compensation Act 1923, Migrant Workers Act 1979, Weekly Holiday Act 1942, Plantation Labour Act 1951and the Mines Act 1952.
Laws Relating to Women Employees
With the aim of encouraging women workforce and providing equal opportunities to them several laws have been enacted to protect their rights, such as Equal Remuneration Act1976 and Maternity Benefits Act 1961.
To prohibit and prevent sexual harassment of women at workplace, the Sexual Harassment at Workplace Act came into force in 2013. It also has provisions for redressal of such complaints.
Child and Bonded Labour
To prohibit and prevent child and bonded labour, the Child Labour prohibition and Regulation Act 1986, and Bonded Labour System Abolition Act 1976 were legislated.
This is only a brief guide of labour and employment laws in India. If you have any labour or employment related query, you can seek advice from a labour law consultant.
