LABOUR RIGHTS & LAW

Saumya Uma
28 March 2018
 WHAT IS LABOUR LAW?
 body of law that governs the employer-
employee relationship,
 including individual employment contracts
 Rules & regulations that protect conditions
at work (protection from discrimination,
wages and hours, and health and safety)
 Rules and regulations related to right to
organize among workers, and negotiate
collective bargaining
FACTORS RESPONSIBLE FOR
SHAPING INDIAN LABOUR LAW
 The prevailing social and economic conditions
 The views expressed by important nationalist leaders during the days
of national freedom struggle
 The provisions of the Constitution
 The International Conventions and Recommendations (such as ILO)
 Recommendations of the various National Committees and
Commissions (such as First National Commission on Labour (1969)
under the Chairmanship of Justice Gajendragadkar, National
Commission on Rural Labour (1991), Second National Commission
on Labour (2002) under the Chairmanship of Shri Ravindra Varma
etc.)
 Judicial pronouncements on labour related matters specifically
pertaining to minimum wages, bonded labour, child labour, contract
labour etc.
PREVAILING SOCIAL CONDITIONS
NECESSITATING LABOUR LAW…
PREVAILING SOCIAL CONDITIONS
NECESSITATING LABOUR LAW…
PREVAILING SOCIAL CONDITIONS
NECESSITATING LABOUR LAW…
CONSTITUTIONAL STATUS OF
LABOUR LAW
Workers’ compensation,
Trade unions, Industrial
insurance, Provident Fund,
employment standing order,
payment of gratuity, welfare Industrial industrial disputes
fund/cess, social security for Relations
unorganized workers

Social Wages
security
Bonded Payment
labour, of wages,
child minimum
CLASSIFICATION
labour wages,
prohibition
OF LABOUR
payment
LAWS of bonus

For socially Working

marginalized conditions
groups

Maternity benefit, equal For equality, For factories, plantation

remuneration, remedy for empowerment labour, beedi/cigar
sexual harassment at the of Women workers, contract
workplace labour…
 LAWS ON INDUSTRIAL RELATIONS
LAW DESCRIPTION FEATURES
The Industrial Contains provisions 1. Applies to all commercial and industrial
Disputes Act, regarding lockouts, establishments.
1947 (the “ID retrenchment, 2. Not applicable to workers employed in
Act”) investigation and a managerial or administrative capacity.
settlement of 3. Not applicable to workers who are
industrial disputes employed in a supervisory capacity, drawing
and unfair labour wages exceeding ten thousand rupees per
practices. month.
The Industrial The Standing Orders 1. Requires employers in industrial
Employment Act requires with establishments, which employ 100 or more
(Standing sufficient precision the workmen.
Orders) Act, conditions of 2. The Standing Orders Act requires
1946 (the employment of every employer to which the Standing
“Standing workmen employed Orders Act applies to certify and register the
Orders Act”) and to make them draft standing order proposed by him in the
known to such prescribed manner.
workmen. 3. However until the draft standing orders
are certified, the prescribed standing orders
given in the Standing Orders Act must be
followed
 LAWS ON WAGES
LAW DESCRIPTION FEATURES
The Payment of to regulate the payment 1. It applies to the persons employed in a factory,
Wages Act, 1936 of wages in a particular industrial or other establishment, whether directly or
the “PW Act”) form at regular intervals indirectly, through a sub-contractor and provides for
without unauthorized the imposition of fines and deductions and lays down
deductions and to wage periods.
ensure a speedy and 2. The PW Act is applicable to factories and
effective remedy to industrial or other establishments where the monthly
employees against illegal wages payable are less than 6,500 per month or such
deductions and/or other higher sum as the Central Government may by
unjustified delay caused notification specify.
in paying wages

The Minimum Under the MW Act, the 1. Under the MWA, every employer is mandated
Wages Act, 1948 State and Central to pay not less than the minimum wages to all
(the “MW Act”) Governments are employees engaged to do any work whether skilled,
empowered to notify the unskilled, manual or clerical (including out-workers) in
minimum wages any employment listed in the schedule to the MWA, in
payable to employees. respect of which minimum rates of wages have been
fixed or revised under the MWA.
2. Minimum wages are determined based on
factors including the industry, location and nature
of work done.
 LAWS ON WORKING CONDITIONS
LAW DESCRIPTION FEATURES
Factories Act, Factories Act contains Applies to premises carrying out manufacturing process
1948 provisions for ensuring the and employing twenty or more workers.
welfare of workers
employed in factories in
terms of health, safety,
working hours, benefits,
leave, overtime pay, etc
Contract The CLRA Act regulates . The CLRA Act requires companies employing 20 or
Labour the employment of more contract labourers to be registered and prescribes
(Regulation contract labour in certain obligations with respect to welfare and health of
and Abolition) certain establishment contract labourers.
Act, 1970 (the 2. The CLRA Act shall not apply to such
“CLRA Act”) establishments in which work is only of an intermittent
or casual nature.
3. Both the establishment and the contractor are to
be registered with the registering officer.
4. The CLRA Act imposes certain obligations
on the contractor in relation to establishment of
canteens, rest rooms, drinking water, washing
facilities, first aid and other facilities and
payment of wages. IF CONTRACTOR FAILS,
PRINCIPAL EMPLOYER IS UNDER
 LAWS ON WORKING CONDITIONS
LAW DESCRIPTION FEATURES
Shops and The provisions of various To regulate the work and employment of
Commercial shops and establishments the workers employed in shops and
establishments legislations, applicable in establishments, including commercial
(the “S&E the states in which the establishments, and provide for fixation
Acts”) establishments are set up, of working hours, rest intervals,
overtime, holidays, leave, termination
of service, maintenance of shops and
establishments, rules for
employment of children and other
rights and obligations of the
employers and employees.
 LAWS ON EQUALITY,
EMPOWERMENT OF WOMEN
LAW DESCRIPTION
The Maternity The MB Act regulates the
Benefits Act, 1961 employment of women in
(the “MB Act”) certain establishments for
certain periods before and
after child-birth and to
provide for maternity benefit
and other benefits.
The Equal The ER Act provides for the
Remuneration payment of equal
Act, 1976 (the remuneration to men and
“ER Act”) women workers for same
or similar nature of work
and prevention of
discrimination, on the
ground of sex, against
women in the matter of
employment
FEATURES
1. Applies to every shop or
establishment in which ten or more
persons are employed.
2. It provides, inter alia, for paid leave
of 26 weeks, payment of maternity
benefits, work from home, creche
facilities and prohibits dismissal,
reduction of wages paid to pregnant
women, etc.
1. Under the ER Act, no
discrimination is permissible in
recruitment and service conditions,
except where employment of women
is prohibited or restricted by law.
2. It also provides that every employer
should maintain such registers and other
documents in relation to the workers
employed by him/ her in the prescribed
LAWS ON EQUALITY,
EMPOWERMENT OF WOMEN
LAW DESCRIPTION FEATURES
Sexual Harassment The SE Act prescribes 1. The SE Act applies to any
of Women at a mechanism for private sector organization or a
Workplace prevention and private venture, undertaking,
(Prevention, prohibition of enterprise, institution, establishment,
Prohibition and workplace sexual society, trust, non-governmental
Redressal) Act, harassment and for organization, unit or service provider
2013 (the “SE Act”) redressal of grievances carrying on commercial, professional,
pertaining to vocational, educational,
workplace sexual entertainmental, industrial, health
harassment. services or financial activities
including, production, supply, sale,
distribution or service.
2. The SE Act mandates an
employer to set up an ‘internal
complaints committee’ at each
office or branch, of an organization
employing at least 10 employees
LAWS FOR SOCIALLY
MARGINALIZED GROUPS
LAW DESCRIPTION FEATURES
Child Labour Prohibits the 1. Applies to all establishment including a shop,
(Prohibition engagement of commercial establishment, workshop, farm, residential
and children in certain hotel, restaurant, eating house, theatre or other place of
Regulation) occupations and public amusement or entertainment.
Act, 1986 to prohibit the 2. Provides a list of industries/undertakings where
engagement of employment of children and adolescents is prohibited.
adolescents in
hazardous
occupations.
Bonded 2 features – defines ‘bonded labour system’ as “the system of forced
Labour indebtedness and labour under which a debtor enters into an
(Abolition) forced labour; agreement with the creditor that he would render
Act, 1976 The law provides service to him either by himself or through any
for identification, member of his family or any person dependent on
release & him, for a specified or unspecified period, either
rehabilitation of without wages or for nominal wages, in consideration
BL, action against of loan or any other economic consideration
offenders obtained by him or any of his ascendants, or in
pursuance of any social obligation, or in pursuance of
any obligation devolving on him by succession”.
LAWS ON SOCIAL SECURITY
LAW DESCRIPTION
The Payment The POG Act provides for
of Gratuity Act, payment of gratuity to
1961 (the “POG employees employed in
Act”) factories, shops and
establishments who have
put in a continuous service
of 5 years, in the event of
their superannuation,
retirement, resignation,
death or disablement.
The Employees The Act provides for the
Provident Fund institution of compulsory
and Provident Fund, Pension
Miscellaneous Fund and Deposit Linked
Provisions Act, Insurance Funds for the
1952 (the benefit of eligible
“Act”) employees in factories and
establishments as may be
specified.
FEATURES
•Applies to every shop or establishment in
which ten or more persons are employed.
•Gratuity is calculated at the rate of 15
days wages for every completed year of
service with the employer.
•Under the POG Act, an employer is obliged
for a maximum gratuity payout of Rs. 350,000
for an employee.
1. Applies to every establishment
employing twenty or more persons.
2. A liability is placed on the employer
and employee to make certain
contributions to the funds mentioned
above after obtaining the necessary
registrations.
3. There is also a requirement to maintain
prescribed records and registers and filing of
forms with the concerned authorities.