WHAT ARE THE LABOUR LAWS FOR EMPLOYEES IN INDIA

INTRODUCTION

Some of the labour laws in India are as follows:

The Industrial Employment (Standing Orders) Act, 1946

One of the most common reasons for conflict between management and employees in Indian industrial enterprises is the lack of standing orders. The Industrial Employment (Standing Orders) Act, 1946 was passed to address this problem with the aim of regulating the conditions of recruitment, termination, disciplinary action, holidays, and other benefits for workers in industrial undertakings. The Act requires employers in industrial establishments to clearly define and adequately describe the working conditions for their employees. Standing orders, which specify the conditions of recruitment, termination, disciplinary action, holidays, leave, and other things, assist in reducing conflict between management and workers in industrial enterprises.  It applies to any industrial establishment with 100 or more employees. 

The Payment of Wages Act, 1936

During the early stages of industrialization, two common employer malpractices were late payment of wages and unauthorized deductions from wages. The Payment of Wages Act, of 1936, was passed in response to a recommendation made by the Royal Commission on Labour in 1931 to end such malpractices.

The main objective of this Act is to eradicate all malpractices by defining the timing and procedure for wage payments and ensuring that workers are paid on time and without any unauthorized deductions. The Act gives the government the authority to raise the ceiling in the future by notification in order to increase its reach and enable more efficient enforcement.

Minimum Wages Act, 1948

The Minimum Wages Act was passed in 1948 to safeguard workers’ rights by setting a minimum wage in certain occupations. The Act sets a minimum wage for time work, a minimum wage for piece work, a guaranteed time rate, and an overtime rate for different occupations, regions, or classes of work, as well as for adults, teenagers, children, and apprentices. It is also important to point out that this Act complies with Article 43 of the Indian Constitution, which ensures a living wage and respectable working conditions.

The Act was primarily enacted to protect the interests of workers in the unorganized sector. The Act establishes and revises the minimum wage for workers in scheduled employment. The Act mandates that both the central and state governments establish and revise the minimum wage, as well as enforce payment of the minimum wage for scheduled employment within their respective jurisdictions.

The Payment of Bonus Act, 1965 

The Payment of Bonus Act, 1965 doesn’t define the word ‘bonus’. The definition of a bonus according to Webster’s International dictionary is “something given in addition to what is ordinarily received by or strictly due to the recipient.” Bonus payments are made to close the pay gap between the actual wages and the ideal of a living wage. Every factory, as defined by the Factories Act, of 1948, as well as any other establishment employing twenty or more people on any day during an accounting year, is covered by the Payment of Bonus Act of 1965.

If an employee works for his or her employer for at least 30 working days in a given accounting year, that employee is eligible for a bonus from the employer. A bonus must be at least 8.33% of an employee’s yearly salary or wages, or 100 rupees, whichever is higher. To enforce the Act, inspectors work for the appropriate government. For violations of the Act, both imprisonment and fines are provided. A dispute over the payment of a bonus is considered an industrial dispute under the Industrial Disputes Act of 1947.

The Equal Remuneration Act, of 1976 

In the International Year of Women in 1975, India passed the Equal Remuneration Ordinance to implement Article 39 of the Constitution, which requires equal pay for men and women. The Equal Remuneration Act, of 1976, eventually replaced the ordinance. The Act prohibits discrimination against women employees during recruitment for the same or similar work, or in any condition of service after recruitment. It also mandates that men and women employees receive equal pay for the same or similar work without exception. The Act applies to all public and private establishments and employment, including domestic work.

LABOUR LAWS

The Motor Transport Workers Act, 1961

The Motor Transport Workers Act, of 1961, was enacted to regulate the working conditions of motor transport workers. The Act applies to any motor transport company that employs five or more motor transport employees. Every employer who employs a motor transport undertaking to which this Act applies is required to register the undertaking. 

The welfare and health provisions to be made available to all workers include uniforms, canteens where 100 or more motor transport workers are employed, restrooms where workers are required to stop at night, and medical and first-aid facilities.

The Employees’ State Insurance Act, 1948 

There are several laws relating to the social security of workers have been passed by Parliament. The Indian parliament enacted the Employees’ State Insurance Act in 1948. It was the first significant social security law passed in independent India to provide such benefits to workers in the organized sector in situations of sickness, maternity, and workplace injury.

In addition to addressing other pertinent issues, the main objective of the Act is to provide certain benefits to employees in cases of illness, pregnancy, and workplace injuries. The insured and their dependents are eligible for a number of benefits based on the established scale. The right to receive benefits cannot be transferred or assigned.  

The Act gives the State Government the authority to establish an Employees Insurance (EI) Court. The EI Court has the authority to determine a person’s status as an employee under the Act, the number of wages or contributions they make, who their principal employer is or was, and whether they are eligible for any benefits provided by the Act. 

The EI Court may also hear actions for failure or negligence to pay contributions, claims for recovery of any benefit admissible under the Act, and claims for contribution recovery from a principal or immediate employer.

The Maternity Benefit Act, 1961

According to Article 42 of the Indian Constitution, the government must establish policies to guarantee just and humane working conditions and maternity leave. This Act was passed to ensure social justice for female workers. This social welfare law includes a number of provisions for benefits for female wage earners. The Act was enacted to provide maternity benefits and other benefits, as well as to regulate women’s employment in specific establishments for a specified period before and after childbirth.

The Maternity Benefit Act, of 1961, regulates the employment of women in factories, mines, circuses, plantations, and shops or establishments employing 10 or more people, with the exception of workers who are covered by the Employees’ State Insurance (ESI) for specific periods before and after childbirth. It also provides maternity and other benefits.

The Payment of Gratuity Act 1972

Another significant social security benefit in India is gratuity. According to the Payment of Gratuity Act, 1972, a gratuity is a one-time payment. When an employee retires, the employer is believed to give them a gratuity as a thank you for their many years of exemplary service. It replaces at least a portion of the income lost as a result of superannuation, retirement or resignation, death, or disabling illness or injury. The PGA is applicable to businesses with 10 or more employees, including factories, mines, oil fields, plantations, ports, railroads, and retail establishments. 

EMPLOYEES

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