INTRODUCTION To secure to each labourer the whole product of his labour, or as nearly as possible, is a worthy object of any good

Government said Abraham Lincoln. Labour law also known as employment law is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions, employers and employees. In other words, Labour law defines the rights and obligations as workers, union members and employers in the workplace. Generally, labour law covers: Industrial Relations certification of unions, labour-management relations, collective bargaining and unfair labour practices; Workplace Health And Safety; Employment Standards, including general holidays, annual leave, working hours, unfair dismissals, minimum wage, layoff procedures and severance pay. There are two broad categories of labour law. First, collective labour law relates to the tripartite relationship between employee, employer and union. Second, individual labour law concerns employees' rights at work and through the contract for work. The labour movement has been instrumental in the enacting of laws protecting labour rights in the 19th and 20th centuries. Labour rights have been integral to the social and economic development since the industrial revolution Industrialisation poses a challenge for an entrepreneur in the form of management of the resources. The management and effective and efficient deployment of the resources of the organisation is the factor which decides the profitability and viability of any organisation .Labour is one of the basic resources of any industry and has an important bearing on the performance and goals of the organisation.

In India we have a plethora of Laws which deals with issues concerning Labour administration, labour welfare, regulation of industrial relations between the management and the workers. For the effective and efficient management of labour in an industry or an organisation it is necessary to have a complete knowledge of the Laws, bye laws, regulations and ordinances applicable to the industry in general and to the company or organisation specifically. The laws and bye laws applicable to labour issues and interests provides for various compliances in accordance with procedures laid therein. MEANING OF LFGHR L- Legal F Framework G - Governing H Human R-Relations Thus , LFGHR means a set of rules governing working relations between employees and employers , employees and government and employers and government employees. 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. This has led to a big confusion as to their meanings. Labour Laws are different from employment laws which deal only with employment contracts and issues regarding employment and workplace discrimination and other private law issues.

Employment Laws cover broader area than labour laws in the sense that employment laws cover all the areas of employer/employee relationship except the negotiation process covered by labour law and collective bargaining. Labour Laws harmonize many angles of the relationship between trade unions, employers and employees. The final goal of labour law is to bring both the employer and the employee on the same level, thereby mitigating the differences between the two ever-warring groups. ORIGIN 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. Employers 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. In India the labour laws are so numerous, complex and ambiguous that they promote litigation rather than the resolution of problems relating to industrial relations. The labour movement has contributed a lot for the enactment of laws protecting labour rights in the 19th and 20th centuries. HISTORY OF LABOUR LAWS The history of labour legislation in India can be traced back to the history of British colonialism. The influences of British political economy were naturally dominant in sketching some of these early laws. In the beginning it was difficult to get enough regular Indian workers to run British establishments and hence laws for chartering workers became necessary. This was obviously labour legislation in order to protect the interests of British employers. The British enacted the Factories Act with a really self-centered motive. It is well known that Indian textile goods offered serious competition to British textiles in the export market. In order to make India labour costlier, the Factories Act was

first introduced in 1883 because of the pressure brought on the British parliament by the textile moguls of Manchester and Lancashire. Thus we received the first stipulation of eight hours of work, the abolition of child labour, and the restriction of women in night employment, and the introduction of overtime wages for work beyond eight hours. While the impact of this measure was clearly for the welfare of the labour force the real motivation was undoubtedly the protection their vested interests. India provides for core labour standards of ILO for welfare of workers and to protect their interests. India has a number of labour laws addressing various issues such as resolution of industrial disputes, working conditions, labour compensation, insurance, child labour, equal remuneration etc. Labour is a subject in the concurrent list of the Indian Constitution and is therefore in the jurisdiction of both central and state governments. Both central and state governments have enacted laws on labour issues. Central laws grant powers to officers under central government in some cases and to the officers of the state governments in some cases. THE EMERGENCE OF LABOUR LAW From the view of convenience , the history of industrial legislation can be divided into three parts1. Initial Period ( Till 1918 A.D) 2. Period prior to independence ( 1918 A.D to 1947 ) 3. Period since independence ( from 1947 till now ) 1. Initial Period ( Till 1918 A.D) During this period the process of industrial legislation was very slow but the few enactments which were made during this period manifest that the government and the employers had started thinking about it. In the beginning of the period Indian Fatal Accident Act ,1855 came into existence. Its object was to expound the liability of the accidents with regard to workers.

Thereafter was enacted the Workmens Breach Of Contract Act 1860. This act was a violent assault on the right of workers . In this act there was the provision to punish the worker for the breach of contract. With the enactment of the act a wave of tremendous dissatisfaction spread among the workers and therefore, the then contemporary British government set up an Industrial Commission. It studied the condition of workers during that period and in its report made important suggestions in this connection according to which that place was recognized as a factory where work was done with the help of machines and at least 100 workers were employed in it, In view of these reforms In 1881 A.D Employees And Workmen ( Disputes ) Factories was enacted , but despite the passage of the above acts there was not much improvement in the condition of workers. So a second industrial commission was appointed and keeping its recommendations in another Factories Act 1890 was passed and its object was to give maximum facilities to the workers. When these reforms were taking place in the industrial areas then more attention was also given to the workers in the mines . A Mining Enquiry Committee was formed to overview the situations of the mining workers and on the basis of their suggestions in 1901 A.D Indian Mines act was enacted . Thus, during the above period the enactment of the above mentioned acts for the working class set as a trend of reform in the direction of labor legislation.

2. Period Prior To Independence ( 1918 A.D To 1947 ) In the beginning of the twentieth century when the First World War was ended then there was a new awakening in the laborers or the working class of the entire world. After the dreadful annihilation of the world there was the commencement of a new Industrial revolution among the civilized nations, in consequence there was a significant change in the industrial sphere. There was the development and expansion of industries whereby there was considerable in the industrial areas and there was a astonishing increase in the number of workers employed in those industries. Whereas on one hand the owners of industries and the employers of the good industries got a good opportunity of getting profits of production and on the other hand indifferent industries the works employed got the opportunity of new organization strength.

a) b) c) d) e) f) g) h)

Workmens Compensation Act 1923 Trade Union Act 1926 Mining (Amendment) Act, 1923 Indian Dock Labourers Act, 1934 Indian Merchant Shipping Act, 1923 Indian Railways Act, 1890 Children (Pledging Of Labor) Act,1933 Mines Maternity Act, 1921

Thus, during this period labourers of every sphere were given legal protection as regards their rights and so that workers might get all round benefit statues were enacted. Thus, this period can be called the period of development of industrial legislation. 3. Period Since Independence ( From 1947 Till Now ) In this period there have been revolutionary changes in the industrial sphere. The rights of the workers got legal recognition. In the period the following Acts were enacted a) b) c) d) e) f) Industrial Disputes Act,1947 Payment Of Minimum Wages Act, 1952 Employees State Insurance Act, 1948 Employment Exchange Act, 1961 Payment Of Bonus Act, And Payment Of Gratuity Act , 1972 Workmens Provident Fund Act, 1952

NEED OF LABOUR LEGISLATION Ever since industrialization became a force to reckon with, the working class has been at the receiving end of the ill treatment meted out to them by their employers. The fact that they were illiterate, unsure of themselves and disunited did nothing to improve their situation. They were systematically exploited and discriminated against by hordes of employers, for whom profits took precedence over everything

else, including the health and welfare of a worker. Workers were made to work for long hours under absolutely inhuman conditions. They were paid a pittance for the work they put in. All too often, a proportion of this pittance was taken away under one pretext or the other. Workers could do nothing about this injustice. They had no right to discuss the terms and conditions of their employment. The constant influx of migrants, from rural to urban areas in search of employment, ensured that employers were always assured of cheap labour and a submissive working class. Anyone who refused to work under these conditions would lose his job to another worker grateful for the opportunity to earn a living. The demand for consumer goods rose around the two World wars. Employers felt the need to go in for large-scale production in order to cope with the demand. It was at this time that workers realized that if they were to band together, they would be able to demand more equitable terms and conditions of employment. This realization led to a demand for higher wages and better working conditions. When employers refused to heed these demands, strikes and lockouts became the commonplace. The basic principle of industrial legislation is to ensure social justice to the workers The object of legislation is the equitable distribution of profits and benefits accruing from industry between industrialists and workers and affording protection to the workers against harmful affects to their health safety and morality.

In a developing country like India, Labour legislation becomes especially important because of the following reasons 1).Labour organizations are relatively weak and in most of the cases, they depend merely on the mercy of the employers. Individual worker is economically very weak and is unable to bargain his terms with the employers. Now the prior payment of wages layoff, dismissal,

retrenchments etc , are all governed by legislation. The economic insecurity of the workers is removed to a great extent. 2) .In many organizations, workers may feel occupational insecurity. The workers may not be given money in case of accidents, death, occupational Act, Employees State Insurance Act, certain benefits have been statutorily given to workers which the employees otherwise may not get from their employers. 3.)In any factories, there important working conditions on account of which the employees health and safety is always in danger .The factories Act contains a number of provisions relating to health safety and welfare of workers. Special provisions have been made for the women. 4.)Labour legislation is also necessary from the viewpoint of law and order situation and national security of the country. State plays a vital role in the continuing production. a) It helps in the economic development of the country. b) The idea of Welfare State is embodied in the Directive Principles of the constitution and for reason, various labour laws have been enacted to protect the sections of the society. 5.)Labour Legislation is one of the most progressive and dynamic instruments for achieving socio-economic progress. ELEMENTS OF LABOUR LAW The basic subject matter of labour law can be considered under nine broad heads Employment; Individual Employment Relationships Wages And Remuneration; Conditions of Work Health, Safety, And Welfare; Social Security;

 Trade Unions And Industrial Relations; The Administration Of Labor Law; And Special Provisions For Particular Occupational Or Other Groups. PURPOSE OF LABOUR LEGISLATION Labour legislation that is adapted to the economic and social challenges of the modern world of work fulfils three crucial roles: it establishes a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy; by providing a framework within which employers, workers and their representatives can interact with regard to work-related issues, it serves as an important vehicle for achieving harmonious industrial relations based on workplace democracy; it provides a clear and constant reminder and guarantee of fundamental principles and rights at work which have received broad social acceptance and establishes the processes through which these principles and rights can be implemented and enforced But experience shows that labour legislation can only fulfills these functions effectively if it is responsive to the conditions on the labor market and needs of the parties involved. The most efficient way of ensuring that these conditions and needs are taken fully into account is if those concerned are closely involved in the formulation of the legislation through processes of social dialogue. The involvement of stakeholders in this way is of great importance in developing a broad basis of support for labour legislation and in facilitating its application within and beyond the formal structured sectors of the economy. OBJECTIVES OF LABOUR LEGISLATION The main objectives for various labour laws areas follows : To protect the workers from profit seeking exploiters To promote cordial industrial relations between employers and employees.

To preserve the health safety and welfare of workers. To product the interests of women and children working in the factories. To improve their working and living conditions, To encourage settlement of industrial dispute amicably for the purposeof maintaining industrial peace and harmony, To provide for a legal machinery to take care of various aspects of socioeconomic importance and environment, To ensure social justice to both the employers and the employees , To reduce tensions and chances of victimization, To create an environment of peaceful coexistence, To ensure safeguard and safe environment for workmen in factories and industries, To compensate the injured workmen and their dependents in the event of accident, To provide relief to workmen in the matter of layoff and retrenchment, collective bargaining, etc.

PRINCIPLES OF LABOUR LEGISLATION : There are four principles on which the labour legislation is based viz, 1. 2. 3. 4. Social Justice. Economic Justice. National economy International conventions

Social Justice The concept of social justice refers to providing justice to everyone in the society so that the poor are not exploited by the rich..It is an in the interest of both employers and employees that they should consider themselves as two wheels of a cart and firmly believe that one cannot exist without the other.

National Economy : Labour legislation ensures industrial peace and helps in the industrialization of the country..The Directive principles of the constitution contain the idea of welfare state..It is a fundamental of a welfare state to look after the interest of workers who are the weakest section of the society and satisfy their physical needs with the increase in productivity the benefits are shared with the workers , resulting in their prosperity..Thus for the growth of economy and development of the country , labour legislation acts as guiding principle. International Conventions International labour organizations aims at securing the minimum standard of living for the workers throughout the world..If any convention is passed by government, it becomes binding if it is ratified by any country..Thus, labour legislation is guided by these conventions LABOUR JURISDICTION-STATE VS CENTRAL Under the Constitution of India, Labour is a subject in the Concurrent List where both the Central & State Governments are competent to enact legislation subject to certain matters being reserved for the Centre. Constitutional Status Union List Concurrent List

Entry No. 55 : Regulation of labour and Entry No. 22: Trade Unions; industrial safety in mines and oil fields and labour disputes. Entry No. 61: Industrial concerning Union employees disputes Entry No.23: Social Security insurance, employment unemployment. and and

Entry No.65: Union agencies and Entry No. 24: Welfare of about including institutions for "Vocational ...training..." conditions of work, provident funds, employers 'invalidity and old age pension and maternity benefit.

The legislations can be categorized as follows: 1) Labour laws enacted by the Central Government, where the Central Government has the sole responsibility for enforcement. 2) Labour laws enacted by Central Government and enforced both by Central and State Governments. 3) Labour laws enacted by Central Government and enforced by the State Governments. 4) Labour laws enacted and enforced by the various State Governments which apply to respective States The Constitution of India provides detailed provisions for the rights of the citizens and also lays down the Directive Principles of State Policy which set an aim to which the activities of the state are to be guided. These Directive Principles provide a. For securing the health and strength of employees, men and women; b.That the tender age of children are not abused; c. That citizens are not forced by economic necessity to enter avocations unsuited to their age or strength; d.Just and humane conditions of work and maternity relief are provided; and e. That the Government shall take steps, by suitable legislation or in any other way, to secure the participation of employee in the management of undertakings, establishments or other organisations engaged in any industry.

LABOUR POLICY OF INDIA Labour policy in India has been evolving in response to specific needs of the situation to suit requirements of planned economic development and social justice and has two-fold objectives, viz., maintaining industrial peace and promoting the welfare of labour.

Labour Policy Highlights Creative measures to attract public and private investment. Creating new jobs New Social security schemes for workers in the unorganised sector. Social security cards for workers. Unified and beneficial management of funds of Welfare Boards. Reprioritization of allocation of funds to benefit vulnerable workers. Model employee-employer relationships. Long term settlements based on productivity. Vital industries and establishments declared as `public utilities`. Special conciliation mechanism for projects with investments of Rs.150 crores or more. Industrial Relations committees in more sectors. Labour Law reforms in tune with the times. Empowered body of experts to suggest required changes. Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary. Amendments to Industrial Disputes Act in tune with the times. Efficient functioning of Labour Department. More labour sectors under Minimum Wages Act. Child labour act to be aggressively enforced. Modern medical facilities for workers. Rehabilitation packages for displaced workers. Restructuring in functioning of employment exchanges. Computerization and updating of data base. Revamping of curriculum and course content in industrial training. Joint cell of labour department and industries department to study changes in laws and rules.

CLASSIFICATION OF VARIOUS LABOUR LAWS The days where the labourers toiled hard for a pittance are in for a welcome change. Around this time, the government decided to impose some kind of order in

this set-up. A number of laws were enacted in order to provide relief to workers and ensure the smooth working of the production process. There are over 45 legislations on labour from the Central Government and the number of legislations enacted by the State Governments is close to four times that of the Central Acts. Labour Laws can be classified into the following eight categories: 1. 2. 3. 4. 5. 6. 7. 8. Laws related to Industrial Relations Laws related to Wages Laws related to Specific Industries Laws related to Equality and Empowerment of Women Laws related to Deprived and Disadvantaged Sections of the Society Laws related to Social Security Laws related to Employment & Training Others

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

Laws related to Specific Industries a. The Factories Act, 1948 b. The Dock Workers (Regulation of Employment) Act, 1948. The Plantation Labour Act, 1951 c. The Mines Act, 1952 d. The Working Journalists and other Newspaper Employees (Conditions of Service and Misc. Provisions) Act, 1955 The Working Journalists and other Newspaper Employees (Conditions of Service and Misc. Provisions) Rules, 1957 e. The Merchant Shipping Act, 1958 f. The Motor Transport Workers Act, 1961 g. The Beedi & Cigar Workers (Conditions of Employment) Act, 1966 h. The Contract Labour (Regulation & Abolition) Act, 1970 i. The Sales Promotion Employees (Conditions of Service) Act, 1976 The Sales Promotion Employees (Conditions of Service) Rules, 1976 j. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 k. The Shops and Establishments Act l. The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Rules, 1984 The Cine Workers Welfare Fund Act, 1981. m. The Dock Workers (Safety, Health & Welfare) Act, 1986 n. The Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996 o. The Dock Workers (Regulation of Employment) (inapplicability to Major Ports) Act, 1997 p. The Mica Mines Labour Welfare Fund Act, 1946 q. The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972 r. The Beedi Workers Welfare Fund Act, 1976 s. The Beedi Workers Welfare Cess Act, 1976 t. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund Act, 1976

u. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Cess Act, 1976 v. The Cine Workers Welfare Fund Act, 1981 w. The Cine Workers Welfare Cess Act, 1981 x. The Employment of Manual Scavengers and Construction of Dry latrines Prohibition Act, 1993 y. The Coal Mines (Conservation and Development) Act, 1974 Laws related to Equality and Empowerment of Women 1) The Maternity Benefit Act, 1961 2) The Equal Remuneration Act, 1976 Laws related to Deprived and Disadvantaged Sections of the Society 1) The Bonded Labour System (Abolition) Act, 1976 2) The Child Labour (Prohibition & Regulation) Act, 1986 Laws related to Social Security 1. 2. 3. 4. The Workmens Compensation Act, 1923 The Employees State Insurance Act, 1948 The Employees Provident Fund & Miscellaneous Provisions Act, 1952 The Payment of Gratuity Act, 1972

Laws related to Employment & Training 1. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 The Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1959 2. The Apprentices Act, 1961

Others 1. 2. 3. 4. 5. 6. 7. 8. The Fatal Accidents Act, 1855 The War Injuries Ordinance Act, 1943 The Weekly Holiday Act, 1942 The National and Festival Holidays Act The War Injuries (Compensation Insurance) Act, 1943 The Personal Injuries (Emergency) Provisions Act, 1962 The Personal Injuries (Compensation Insurance) Act, 1963 The Labour Laws (Exemption from Furnishing Returns and Maintaining Register by Certain Establishments) Act, 1988 9. The Public Liability Insurance Act, 1991

OVERVIEW OF IMPORTANT LABOR LAWS

THE FACTORIES ACT, 1948 Objectives 1. To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories. 2. To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory. Applicability of the Act 1. Applicable to the whole of India including Jammu & Kashmir. 2. Covers all manufacturing processes and establishments falling within the definition of factory. 3. Applicable to all factories using power and employing 10 or more workers, and if not using power, employing 20 or more workers on any day of the preceding 12 months. Scheme of the Act 1. The Act consists of 120 Sections and 3 Schedules. 2. Schedule 1 contains list of industries involving hazardous processes

3. Schedule 2 is about permissible level of certain chemical substances in work environment. 4. Schedule 3 consists of list of notifiable diseases.

EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 An Act to provide for the institution of provident funds, pension funds and deposit linked insurance fund for the employees in the factories and other establishments. The Act extends to the whole of India except the State of Jammu and Kashmir Objectives To make provisions for the future of the industrial worker after he retires or for his dependents in the case of his early death. Compulsory Provident Fund Family Pension Deposit linked insurance Scope and coverage Application to factories and establishments employing 20 or more persons. Can be made applicable by central government to establishments employing less than 20 persons or if the majority of employees agree. Excludes establishments employing 50 or more persons or 20 or more persons but less than 50 persons, until the expiry of three years in the case of the former, and five years in the case of the former, and five years in the case of the latter, from the date of setting up of establishment. Applicable to all persons who are employed directly or indirectly through contractors in any kind of work.

Eligibility Employees drawing pay not exceeding Rs. 6,500/- per month.

Schemes framed under the Act The Employees Provident Funds Schemes, 1952; The Employees Pension Scheme, 1995 and The Employees Deposit Linked Insurance Scheme, 1976

THE EMPLOYEES STATE INSURANCE ACT (ESI ACT), 1948 Origin The Employee State Insurance act was promulgated by the Parliament of India in the year 1948.To begin with the ESIC scheme was initially launched on 2 February 1952 at just two industrial centers n d in the country namely Kanpur and Delhi with a total coverage of about 1.20 lakh workers. There after the scheme was implemented in a phased manner across the country with the active involvement of the state governments. Objectives: The ESI Act is a social welfare legislation enacted with the object of providing certain benefits to employees in case of sickness, maternity and employment injury. Under the Act, employees will receive medical relief, cash benefits, maternity benefits, pension to dependents of deceased workers and compensation for fatal or other injuries and diseases. Administration Of The Act The provisions of the Act is administered by Employees State Insurance Corporation ESIC - Employees State Insurance Corporation (ESIC) has been formed to supervise the scheme under Section 3 of the Act. The Corporation supervises and controls the ESI scheme.

Applicability of ESI Scheme - The scheme is applicable to all factories. [Section 1(4)]. The Appropriate Government can also make it applicable to any other industrial, commercial, agricultural or other establishments, by issuing notification and giving 6 month notice. [Section 1(5)]. Thus, ESI Act can be made applicable to shops also. However, since Government has to provide for hospitals and medical facilities, the Act can be made applicable to different parts of State at different dates. Thus, if a factory is at a place where ESIC is unable to provide medical facilities, ESI Act may not be made applicable to that area. Government can exempt a factory or establishment or persons or class of persons from provisions of ESI Act, if the employees are getting better medical facilities/ [e.g. if Government is convinced that the factory itself is providing very good medical facilities e.g. like TISCO]. PAYMENT OF GRATUITY ACT, 1972 Gratuity is a lump sum payment to employee when he retires or leaves service. It is basically a retirement benefit to an employee so that he can live life comfortably after retirement. However, under Gratuity Act, gratuity is payable even to an employee who resigns after completing at least 5 years of service. In DTC Retired Employees v. Delhi Transport Corporation 2001(4) SCALE 30 = 2001 AIR SCW 2005, it was observed that gratuity is essentially a retiring benefit which as per Statute has been made applicable on voluntary resignation as well. Gratuity is reward for good, efficient and faithful service rendered for a considerable period. Employers liable under the scheme - The Act applies to every factory, mine, plantation, port, and railway company. It also applies to every shop and establishment where 10 or more persons are employed or were employed on any day in preceding 12 months. [Section1(3)]. Since the Act is also applicable to all shops and establishments, it will apply to motor transport undertakings, clubs, chambers of commerce and associations, local bodies, solicitors offices etc. , if they are employing 10 or more persons.

Employees eligible for gratuity Employee means any person (other than apprentice) employed on wages in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work, whether terms of such employment are express or implied, and whether such person is employed in a managerial or administrative capacity. However, it does not include any Central/State Government employee. [Section 2(e)]. Thus, the Act is applicable to all employees - workers as well as persons employed in administrative and managerial capacity. Gratuity is payable to a person on (a) resignation (b) termination on account of death or disablement due to accident or disease (c) retirement (d) death. Normally, gratuity is payable only after an employee completes five years of continuous service. In case of death and disablement, the condition of minimum 5 years service is not applicable. [Section 4(1)]. The Act is applicable to all employees, irrespective of the salary. PAYMENT OF BONUS ACT, 1965 The term bonus has not been defined in the Payment of Bonus Act, 1965. Websters International Dictionary, defines bonus as something given in addition to what is ordinarily received by or strictly due to the recipient. The Oxford Concise Dictionary defines it as something to the good into the bargain (and as an example) gratuity to workmen beyond their wages. Establishments to which the Act is applicable - The Act applies to (a) every factory; and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year. [section 1(3)].

PAYMENT OF WAGES ACT, 1936

Objectives To ensure regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. Applicability of the Act Application for payment of wages to persons employed in any factory. Not applicable to wages which average Rs 6,500 per month or more. Wages include all remuneration, bonus, or sums payable for termination of service, but do not include house rent reimbursement, light vehicle charges, medical expenses, TA, etc. Important provisions of the Act Responsibility of the employer for payment of wages and fixing the wage period. Procedures and time period in wage payment. Payment of wages to discharged workers. Permissible deductions from wages. Nominations to be made by employees. Penalties for contravention of the Act. Equal remuneration for men and women. Obligations and rights of employers. Obligations and rights of employees. The Act is to regulate payment of wages to certain class of employed persons. The main purpose of this Act is to ensure regular and timely payment of wages to the employed persons, to prevent unauthorized deductions being made from wages and arbitrary fines being imposed on the employed persons. The Act extends to the whole of India. Application of the Act:

The Act applies to payment of wages to persons employed in factory or railways. It also applies to any industrial or other establishment specified in Section 2(ii). [Section 1(4)]. Factory means factory as defined in Section 2(m) of Factories Act. - - Industrial or other establishment specified in Section 2(ii) are - * Tramway or motor transport services * Air transport services * Dock wharf or jetty * Inland vessels * Mines, quarry or oil-field * Plantation * Workshop in which articles are produces, adopted or manufactured. - - The Act can be extended to other establishment by State/Central Government. Presently, the Act applies to employees drawing wages upto Rs 6,500. [Section 1(6)]. Every employer is responsible for payment to persons employed by him on wages. [Section 3]. WORKMEN'S COMPENSATION ACT 1923 This Act is the earliest national legislation to provide the compensation to certain classes of workmen by their employers for injury which may be suffered by the workmen as a result of an accident during the course of employment. The general principle is that a workman who suffers injury in course of his employment should be entitled to compensation and in case of fatal injury his dependants should be compensated. MINIMUM WAGES ACT 1948 The Act prescribes minimum wages for all employees in all establishments or working at home in certain employments specified in the schedule of the Act. Central and State Governments revise minimum wages specified in the schedule INDUSTRIAL DISPUTES ACT 1947 Origin The Industrial Disputes Act, 1947 came into existence in April 1947. It was enacted to make provisions for investigation and settlement of industrial disputes and for providing certain safeguards to the workers. The Act contains 40 sections divided into 7 chapters.

 Chapter I deals with the title, definitions, etc Chapter II contains the various authorities under the Act. These authorities include Conciliation Officers, Labour Courts and Tribunals. Chapter III contains the main scheme of the Act such as reference of disputes to Labour Courts and Industrial Tribunals. Chapter IV lays down the procedure, power and duties of the authorities constituted under the Act. Chapter V contains provisions to prohibit strikes and lockouts, declaration of strikes and lockouts as illegal, and provisions relating to lay-off and retrenchment and closure. Chapter-VI contains provisions of various penalties under the Act. ChapterVII contains miscellaneous provisions. Objective of the Act The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations. The Act also lays down: (a) The provision for payment of compensation to the Workman on account of closure or lay off or retrenchment. (b) The procedure for prior permission of appropriate Government for laying off or retrenching the workers or closing down industrial establishments (c) Unfair labour practices on part of an employer or a trade union or workers. Applicability The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein. Every person employed in an establishment for hire or reward including contract labour, apprentices and part time employees to do any

manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Act. This Act though does not apply to persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing > 1600 p.m or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison. MATERNITY BENEFIT ACT 1961 The Maternity Benefits Act, 1961, gives her the assurance that her rights will be looked after while she is at home to care for her child. The object of the Act is to regulate the employment of women in certain establishments for certain periods before and after childbirth and to provide for maternity benefits and certain other benefits. Applicability of the Act This act applies to women who work in factories, mines, plantations, circus industry, shops and establishment with more than 10 employees. It does not apply to employees covered by the Employees State Insurance Act, 1948. It can be extended to other establishments by the State Governments Every women employee who has actually worked in an establishment for a period of at least 80 days during the 12 months immediately proceeding the date of her expected delivery, is entitled to receive maternity benefits i.e. medical bonus, maternity leave, nursing breaks under the Act.

INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT 1946 The Act requires employers in industrial establishments to clearly define the conditions of employment by issuing standing orders duly certified. Model standing orders issued under the Act deal with classification of workmen, holidays, shifts, payment of wages, leaves, termination etc.

The Industrial Employment Act requires employers in industrial establishments to clearlydefine the conditions of employment by issuing standing orders duly certified. Modelstanding orders issued under the Act deal with classification of workmen, holidays, shifts,payment of wages, leaves, termination etc. Generally, the workers are classified as Apprentice/Trainee; Casual; Temporary; Substitute; Probationer; Permanent; And Fixed Period Employees THE MINES ACT, 1952 The Act seeks to regulate the working conditions in mines by providing for measures to be taken for the safety of workers employed therein and certain amenities for them. THE CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970 The Act was passed to aid of workers who are employed through contractors and who have no direct link with industry for which work is done. The Act regulates the employment of contract labour in certain establishments and prohibits such employment in certain circumstance.s.

WHICH COURT TO APPROACH IN CASE OF A LABOUR DISPUTE?

Judicial System in India

The judicial system in India is quite well-established and independent. The Supreme Court of India in New Delhi is the highest Court of Appeal. Each State has a High Court along with subsidiary District Courts, which enforce the rule of law and ensure fundamental rights of citizens, guaranteed by the Constitution of India. India has a three-tier court system with a typical Indian litigation starting from a District Court and reaching its logical conclusion in the Supreme Court of India. The High Courts along with the various State level forums, situated mostly in the State capitals, constitute the middle rung of this three-tier system. District level courts are the courts of first instance in dispute resolution except in cases where they are prevented from being so by virtue of lack of pecuniary jurisdiction. Cases involving violation of fundamental rights are filed in respective High Court or Supreme Court. A number of special courts and tribunals have been constituted in India to deal with specific disputes: 1. Tax Tribunals 2. Consumer Dispute Redressal Forums 3. Insurance Regulatory Authority of India 4. Industrial Tribunals 5. Debts Recovery Tribunals 6. Company Law Board 7. Motor Accidents Claims Tribunals 8 Labour Courts Where to file?

Most of the labour disputes are referred to the Labour Courts/Industrial Tribunals through the Department of Labour under the respective State Government. The process for labour dispute starts with filing of a petition before Labour Conciliation Officer and in case no compromise is possible, the said officer sends a failure report to the Government. After consideration of the said

report, the Government may send a reference to the Labour Court/Industrial Tribunal. In certain matters, the labour dispute can be directly filed in the court concerned. Labour Courts These courts are found in every district and they form the courts of original jurisdiction under which various labour laws and rules are enforced. Appellate Labour Courts These courts hear only the Appeals and revisions originating from the judgements and orders of the subordinate original labour courts and officers, under the provisions of various labour and related laws. a) When an industrial dispute has been referred to a Labour Court for adjudication, it is the duty of the Labour Court to (i) Hold proceedings expeditiously, and (ii) To submit its award to the appropriate Government soon after the conclusion of the proceedings. b) However, no deadline has been laid down with respect to the time within which the completion of proceedings has to be done. Nonetheless, it is expected that these Courts hold their proceedings without getting into the technicalities of a Civil Court. c) It has been held that the provisions of Article 137 of the Limitation Act do not apply to reference of disputes to the Labour Courts. These Courts can change the relief granted by refusing payment of back wages or directing payment of past wages too. Court Fee No Court fee is payable on the petitions filed before Labour Courts and Industrial Tribunals. What matters fall within the jurisdiction of Industrial Tribunals?

1. Wages, including the period and mode of payment 2. Compensatory and other allowances 3. Hours of work and rest intervals 4. Leave with wages and holidays

5. Bonus, profit sharing, provident fund and gratuity 6. Shift working otherwise than in accordance with standing orders 7. Classification by grades 8. Rules of discipline 9. Retrenchment of workmen and closure of establishment What matters fall within the Jurisdiction of Labour Courts?

1. The propriety or legality of an order passed by an employer under the standing orders 2. The application and interpretation of standing order 3. Discharge or dismissal of workmen including re-instatement of, or grant of relief to, workmen wrongfully dismissed. 4. Withdrawal of any customary concession or privilege 5. Illegality or otherwise of a strike or lock-out; and 6. All matters other than those being referred to Industrial Tribunals. Stages of adjudication in labour or industrial disputes

The first is receiving a reference from the appropriate Government or filing of the labour dispute in the Labour Court. The next step is sending notice to the Management and after filing of the response by them, the matter is fixed for adjudication. The fourth step is recording the evidence of the parties and hearing the arguments. It is appropriate to mention here that advocates cannot appear in Labour Courts/Industrial Tribunals, unless permitted. The final conclusion of the dispute After hearing the parties, the Labour Court/Industrial Tribunal decides the dispute and the said final decision is called an Award. A copy of the award is to be

published by the Labour Department as per rules. Copies of the same are also sent to the parties concerned. Execution of Awards In case the management does not comply with the terms of the award, the workman may pray for its execution by moving an application before the concerned Conciliation Officer. Mediation in Labour Disputes

Mediation is an exercise of resolving a dispute by settlement with the help of a Mediator who is a neutral third party. The mediator may be: a) A judicial officer (retired or sitting judge) b) An Advocate c) An otherwise trained professional When a sitting judicial officer acts as a mediator in a case, his services are available free of cost and without any other charges on any of the parties. Important Authorities Under The Labour Law In India Ministry of Labour and Employment , Government of India The Ministry of Labour and Employment, a branch of the Government of India, is the apex body for formulation and administration of the rules and regulations and laws relating to labour and employment in India. The main objectives of the Ministry of Labour and Employm ent are the following: Labour Policy and legislation; Safety, health and w elfare of labour; Social security of labour; Policy relating to special target groups such as w omen and child labour; Industr ial relations and enforcem ent of labour laws in the Centr al sphere; Adjudication of industrial disputes through Central Government Industrial Tribunals cum Labor Courts and National Industr ial Tribunals.

A. Main Secretariat of Ministry of Labour and Employment i.Industrial Relations division ii.Child and Women Labour Division iii.Directorate General, Labour Welfare iv.Economic and Statistics Division v.International Labour Affairs Section vi.Labour Conference Section B. Attached Offices i.Office of the Chief Labour Commissioner ( Central), New Delhi (Also known asCentral Industrial Relations Machinery) ii.Directorate General, Employment and Training, New Delhi iii.Labour Bureau, Chandigarh iv.Directorate General, Factory Advice Service and Labour Institutes, Bombay C. Subordinate Offices i.Directorate General, Mines Safety, Dhanbad ii.Office of the Welfare Commissioner, Allahabad, Bangalore, Bhubaneswar, Calcutta, Hyderabad, Jabalpur, Karma(Bihar) and Nagpur

IMPORTANCE OF LABOUR LAWS IN INDIA Compared to other countries, India has much greater need and importance of labor laws work. Such a condition is caused by certain deficiencies in Indian labor force that are not found in its counterpart in other countries. It is these defects of deficiencies that increase the importance of labor laws activity in the country. Briefly, the following are the reasons why labor laws work in India assumes greater importance than in other countries. 1. Lack Of Strong Labour Union Movement: In India, even today the workers are no united into a class. Keeping in view the numbers, labor Union movement is still in its infancy. Even in the labor union that does exist, there is a lack of enlightened leadership, and there is no unity between these unions themselves. In absence of properly organized labor Union the workers can neither, place their demands effectively before the employer, nor can they think clearly and systematically of their own interests. As this is force lacking in India, it is essential that the welfare of laborers in the country be efficiently looked after by the employers and the Government. 2. Illiteracy: As compared with other countries, the percentage of educated workers is very low, most of them being illiterate. Consequently, they are not in a position to receive advanced industrial training, understand the problems in industries their own interests and those of nation as a whole. This can prove a source of harm not only to the workers but also to the country. Hence efficient, and become responsible citizens of the country. 3. Problem Of Absenteeism And Migration: Compared to the workers of other countries the Indian laborer is more restless and does tendentious towards frequent migration because life in the town does not provide for his needs, and the atmosphere in general does not suit him. Also due to inadequate level of wages the laborer cannot comfortably settle down in one place.

This may in turn also give rise to Absenteeism. This workers migratory tendency can be curbed by providing him with adequate facilities and conditions, and this also shows a positive effect over the absenteeism in the factory. 4. Low Level Of Health And Nutrition: The Indian worker as compared with his counterpart in most European countries is unhealthy and ill fed. This shows a definite affect over the production potential. Hence, he is very great need of inexpensive nutritive food and good facility in case of hospitalization. 5. Extreme Poverty: The percentage of people under the poverty line in our country is comparatively high than other countries. So the standard of living is very low. An Indian workers is unable to provide a healthy living for his family and in the case off female workers she is not provide with assistance in case of need. Hence, the labor welfare has much to do in the country. It must assist them by providing them maternity benefits, in old age i.e., provident fund, pensions and gratuity etc. 6. Lack Of Training: As the percentage of trained workers in India is very low, it is necessary to have training facilities for such a vast labor force. 7. Lack Of Healthy Recreation: Healthy recreation is also at a premium in the country, the efficiency of labor force is diminished by energy being employed in all kinds of undesirable channels. Hence, it is essential that recreation and enjoyment of a healthy kind be provided. 8. Industrial Backwardness Of India: In India, industrial progress is being aimed through the medium of the five year plans, but industrial progress is dependent on the efficiency of the labor force.

The welfare work motivates the workers and maintains efficiency and productivity. So, we can say that the importance of these activities is great for India in comparison to western countries.

DOES LABOUR LAWS OF INDIA NEED A CHANGE? Modern labour regulation is what we look forward to but what it offers us is truly disappointing. In our country, India, our labour regulation really needs an upgrade from top to the bottom. Only if the regulations are updated and modernise, it will attract foreign investments which will further lead to the creation of numerous jobs and hence, the economy of India will rise high. The Desi Laws Are Much Disorganised. India has one of the largest labour and industrial environments in the whole world and as a result of it; we need to give more importance to this area. However, what is being done by the body of legislation is not up to the mark. Hereunder mentioned are few age old, chaotic and self contradictory Acts, which more than benefiting the common people; put them into legal doldrums. The Contract Labour Act, 1970 Beedi and Cigar Workers Act, 1966 Trade Unions Act, 1926 Minimum Wages Act, 1948 However, the Industrial Disputes Act, 1947 is hugely referred in todays modern labour law industries and it is still considered as the most important weapon in the legal battle for both the workman and the company. Just before the independence of India, the Industrial Disputes Act, 1947, in short known as the IDA, came into existence with incorporation of certain rules and regulations regarding the method and procedures of hiring and firing related to the industrial sectors. This Act is supposed to make it difficult for the company to fire anyone.

The Industrial Disputes Act, 1947 went through an amendment during mid-80s. Now any company with more than a hundred workers, need to take State Governments permission before hiring workers. How many of them actually do that is another question! However, this Act has indirectly harmed the growth of industries like the manufacturing sector. Most of the Indian Labour laws (including the IDA) dont give you the permission of free contracting. If a fashion garment manufacturer, whose demand is always unpredictable, wants to hire workers at a higher price because of the rise in sudden demand but also wants to make it clear that they serve a months notice or so and terminate the service of the workers, in case the demand goes down. But in this situation, the India labour law becomes a hindrance. A contract like this is not feasible and has no legal value since the Industrial Disputes Act clearly specifies how and when the workers may be retrenched. Thus we do not see these kinds of contracts. Initially these labour laws seem to favour the poor workers and their interests. Chances of possibilities Hundreds of companies do not hire eligible workers, with a fear that they will not be able to lay them off in case of need. Then why hire these workers initially? This leads to a good number of unemployment too. Many foreign companies do not feel comfortable in investing in India as they think that it is not feasible to do business in the current legal scenario of India. However, there is no such data post 1980 which shows that the number of workers engaged in companies with 100+ workers have reduced. This reflects the markets response towards the amendment made in the Industrial Disputes Act during the middle of 1980. Companies, which are considered to be in a more economically stable position than a worker, should not be given the opportunity to retrench the service of a worker at their own sweet will. But on the other hand, companies should be allowed to enter in different kinds of contracts as per the need and circumstances of a particular situation.

Strict rules regarding the hiring and firing policy across the globe. The Work Bank has conducted a research on the hiring and firing policies of companies across various countries and 100 points were given to the country which has the most rigid rules regarding the employment policy. India scores 48 and ranks among the countries with most unfavorable labor laws. China is moderately below India with a score of only 30 but surprisingly Singapores score in very near to zero. Now it is proved that most nations with less rigid labor regulations are more economically efficient than other countries. Governments need to encourage and make understand the workers about the need and essence of reform of labour regulation. It is the responsibility of the Government to convince the workers to support the reform procedures. But this reform will only be successful, if the Governments assure the workers of some complimentary policies which will provide the social security and benefit in the welfare of the workers.