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All about the Labor Laws: Employment Laws that you Must Know

Narendra Kumar

| Updated: Sep 22, 2018 | Category: Legal, Legal Law

Labor Laws

Labor laws are popularly known as employment laws. The genesis of the labor law in India is the constitution of India and the time to time policies framed as and when by the government of India.  The specific laws framed at the central, center, Municipal levels have also contributed to the labor law in India.  The agreements concerning the labors and judicial precedents also form the very important part of the labor laws.

Today, we shall study certain important Labour laws, however, there are around 38 laws pertaining to the labor laws.

Key Legislation:

Let us get Started with key Legislation:

  1. Factories Act, 1948:

The factories act pertains and covers the aspect of the providing the care and facilities regarding the safety, health, welfare, working environment, working hours, leave policy for the workers in a manufacturing set up.

  1. Shops and Establishment Act:

This is a state act and is framed to regulate the payment of wages, terms of the services, holidays to be given, overtime related rules in hotels, societies, bakeries, education institutions, shops, and other commercial establishments etc.

  1. Contract labor (Regulation & Abolition ) Act,1970:

The Relationship of the contract labor and the principal employer is regulated by this act and protection and duties of the involved parties are regulated by this act.

  1. Industrial Employment Standing order Act 1946:

The crux of this act is the mandatory display of the terms and condition of the service of the workmen and obtains the certification from the authority. It applies to the all the factory set up having 100 or more than 100 workers.

  1. The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996:

As the name itself suggest it is for the benefit of the workers working in the building and construction activities. It regulates everything about the safety, health, welfare, related matters.

  1. The Industrial Disputes Act, 1947:

All kind of grievances of the employee and disputes between the employer and employee is regulated by this act. It regulates the strikes, layoffs, unfair labor practices, lockouts, and closure of establishments. Basically, the rights and of the employees and the procedure to settle, protest and regulate the disputes is prescribed in the act.

    1. Trade Unions Act, 1926:

The Trade Unions Act, 1926 defines the law relating to registered Trade Unions and such formation. It regulates the mode of registration, application requisites for registration, provisions to adhere in the rules of a Trade Union, the minimum requirement for membership of a Trade Union, rights and liabilities of registered Trade Unions, etc

8. Minimum Wages Act, 1948:

This act deals with the fixing of minimum rates of wages in certain prescribed employment. It is regulated by the by States through notifications in the State’s Gazette under the Minimum Wages Rules of the specific State.

The Minimum Wages is the wage which the employer is required to pay to every employee engaged in schedule employment wages at a rate not less than minimum rates of wages as fixed by a notification. Such wages are to be provided without any deduction except the prescribed deductions if any.

9. Payment of Wages Act, 1936:

The Payment of Wages Act, 1936 (the Payment of Wages Act) regulates the payment of wages its mode, timely payment and other related concerns to certain classes of employed persons. The Act ensures that the employers make a timely payment of wages to the employees working under him/her and to keep a check on any kind of unauthorized deductions from the wages.

It is must condition that all wages shall be in current coin or currency notes or in both. The employer may, after obtaining the written authorization of the employed person can pay him the wages either by cheque or by crediting the wages in his bank account submitted for it.

10. Payment of Bonus Act, 1965:

It regulates the payment of bonus to employed ones. The bonus can be paid on the basis of profits or production or productivity. The act is applicable to every establishment in which 20 or more persons are employed and to all employees getting remuneration less than Rs 10,000.

However, in case, an employee has worked for less than thirty days, in that case, he/she is not eligible to receive a bonus under the Bonus Act.

The Bonus Act provides for the payment of bonus between 8.33% (minimum) to 20% (maximum). Note that in order to calculate the bonus, a maximum salary of Rs 3,500 is considered.

Benefits of Labor Laws:

  1. It formulates and attracts public and private investment.
  2. It advances the creation of new jobs.
  3. Through labor laws new Social security schemes for workers in the unorganized sector has been introduced.
  4. It ensures the social security cards for workers.
  5. Unlike before now, we have a unified and beneficial management of funds for the sake of Welfare Boards.
  6. It has reprioritized the allocation of funds for the benefit of vulnerable workers.
  7. It has established a new form of employee-employer
  8. It establishes a long-term settlement based on productivity.
  9. All such important industries and establishments have been declared as `public utilities`.
  10. Imposition of certain special conciliation mechanism for important projects with investments of Rs.150 crores or more.
  11. Definitely, the industrial Relations have improved and more committees in many sectors have been established.
  12. Labor Laws have also reformed itself from time to time with the help of the expert teams and based on their suggestion.
  13. Statutory amendments which have expedited and streamlining the mechanism of Labour Judiciary.
  14. Amendments are brought in to Industrial Disputes Act in tune with the times.
  15. Much more efficient functioning of the Labour Department has resulted due to labor laws in the picture.
  16. Minimum wages, child labor, industrial dispute settlement and many such sensitive issues have been touched and aggressively enforced. Modern medical facilities for workers have improved the situation.
  17. For displaced workers rehabilitation packages have also been taken
  18. Restructuring in the functioning of employment exchanges. Computerization, banking facilitation, commercialization, and many such crucial aspects have been taken care database.
  19. Revamping of curriculum and course content in industrial training.
  20. The joint cell of the labor department and industries department to study changes in laws and rules.

Our Services Include the following:

  1. We provide all kind of services with regard to registration in all the Indian labor laws.
  2. We shall exchange with you the time to time changes and notification of the concerned authorizes and how to adhere to the same.
  3. We shall prepare the set of the legal and corporate document for you
  4. Any legal advisory or guidance will be an added advantage to this.
  5. We will do the requisite liaison on your behalf with the government authorities.

We cover almost all the aspects of the labor law and employment-related issues. We have an expert team comprising of charter accountants, Company secretaries, lawyers who shall frame out the list of applicable labor laws and the rules and regulation applicable to the establishment.

To know more and contact click here.

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Narendra Kumar

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