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What is Labour Law?

Labor 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 ecept the negotiation process covered by labour
law and collective bargaining.
Labour Laws harmonize many angles of the relationship between trade unions, employers and
employees. !n some countries "like #anada$, employment laws related to unionised workplaces
are different from those relating to particular individuals. !n most countries however, no such
distinction is made.
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.
Origins 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. Employer's costs increased due to workers
demand to win higher wages or better working conditions. This led to a chaotic situation which
re(uired the intervention of )overnment. !n order to put an end to the disputes between the ever%
warring employer and employee, the )overnment enacted many labour laws.
!n !ndia the labour laws are so numerous, comple 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 *+th and ,-th centuries.
The history of labour legislation in !ndia can be traced back to the history of .ritish colonialism.
The influences of .ritish political economy were naturally dominant in sketching some of these
early laws. !n the beginning it was difficult to get enough regular !ndian workers to run .ritish
establishments and hence laws for chartering workers became necessary. This was obviously
labour legislation in order to protect the interests of .ritish employers.
The .ritish enacted the /actories 0ct with a really self%centered motive. !t is well known that
!ndian tetile goods offered serious competition to .ritish tetiles in the eport market. !n order to
make !ndia labour costlier, the /actories 0ct was first introduced in *112 because of the pressure
brought on the .ritish parliament by the tetile moguls of 3anchester 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. 4hile the impact of this measure was clearly for the welfare of the labour force the real
motivation was undoubtedly the protection their vested interests.
!ndia provides for core labour standards of !L5 for welfare of workers and to protect their
interests. !ndia has a number of labour laws addressing various issues such as resolution of
industrial disputes, working conditions, labour compensation, insurance, child labour, e(ual
remuneration etc. Labour is a sub6ect in the concurrent list of the !ndian #onstitution and is
therefore in the 6urisdiction of both central and state governments. .oth central and state
governments have enacted laws on labour issues. #entral laws grant powers to officers under
central government in some cases and to the officers of the state governments in some cases.
Various Labour Laws
There are over 78 legislations on labour from the #entral )overnment and the number of
legislations enacted by the 9tate )overnments is close to four times that of the #entral 0cts.
Labour Laws can be classified into the following eight categories:
"i$ Laws related to !ndustrial ;elations
"ii$ Laws related to 4ages
"iii$ Laws related to 9pecific !ndustries
"iv$ Laws related to E(uality and Empowerment of 4omen
"v$ Laws related to <eprived and <isadvantaged 9ections of the 9ociety
"vi$ Laws related to 9ocial 9ecurity
"vii$ Laws related to Employment = Training
"viii$ 5thers
Laws related to Industrial Relations
* The Trade >nions 0ct, *+,?
, The !ndustrial Employment "9tanding 5rders$ 0ct, *+7?
The !ndustrial Employment "9tanding 5rders$ ;ules, *+7?
2 The !ndustrial <isputes 0ct, *+7@
Laws related to Wages
* The Aayment of 4ages 0ct, *+2?
The Aayment of 4ages ;ules, *+2@
, The 3inimum 4ages 0ct, *+71
The 3inimum 4ages "#entral$ ;ules, *+8-
2 The 4orking Bournalist "/iation of ;ates of 4ages$ 0ct, *+81
4orking Bournalist "#onditions of service$ and 3iscellaneous Arovisions ;ules, *+8@
7 The Aayment of .onus 0ct, *+?8
The Aayment of .onus ;ules, *+@8
Laws related to Specific Industries
* The /actories 0ct, *+71
, The <ock 4orkers ";egulation of Employment$ 0ct, *+71
2 The Alantation Labour 0ct, *+8*
7 The 3ines 0ct, *+8,
8 The 4orking Bournalists and other Cewspaper Employees' "#onditions of 9ervice and
3isc. Arovisions$ 0ct, *+88
The 4orking Bournalists and other Cewspaper Employees' "#onditions of
9ervice and 3isc. Arovisions$ ;ules, *+8@
? The 3erchant 9hipping 0ct, *+81
@ The 3otor Transport 4orkers 0ct, *+?*
1 The .eedi = #igar 4orkers "#onditions of Employment$ 0ct, *+??
+ The #ontract Labour ";egulation = 0bolition$ 0ct, *+@-
*- The 9ales Aromotion Employees "#onditions of 9ervice$ 0ct, *+@?
The 9ales Aromotion Employees "#onditions of 9ervice$ ;ules, *+@?
** The !nter%9tate 3igrant 4orkmen ";egulation of Employment and #onditions of 9ervice$
0ct, *+@+
*, The 9hops and Establishments 0ct
*2 The #inema 4orkers and #inema Theatre 4orkers ";egulation of Employment$ 0ct,
The #inema 4orkers and #inema Theatre 4orkers ";egulation of Employment$ ;ules,
The #ine 4orkers' 4elfare /und 0ct, *+1*.
*7 The <ock 4orkers "9afety, Dealth = 4elfare$ 0ct, *+1?
*8 The .uilding = 5ther #onstruction 4orkers ";egulation of Employment = #onditions of
9ervice$ 0ct, *++?
*? The <ock 4orkers ";egulation of Employment$ "inapplicability to 3a6or Aorts$ 0ct, *++@
*@ The 3ica 3ines Labour 4elfare /und 0ct, *+7?
*1 The Limestone = <olomite 3ines Labour 4elfare /und 0ct, *+@,
*+ The .eedi 4orkers 4elfare /und 0ct, *+@?
,- The .eedi 4orkers 4elfare #ess 0ct, *+@?
,* The !ron 5re 3ines, 3anganese 5re 3ines = #hrome 5re 3ines Labour 4elfare /und
0ct, *+@?
,, The !ron 5re 3ines, 3anganese 5re 3ines = #hrome 5re 3ines Labour 4elfare #ess
0ct, *+@?
,2 The #ine 4orkers 4elfare /und 0ct, *+1*
,7 The #ine 4orkers 4elfare #ess 0ct, *+1*
,8 The Employment of 3anual 9cavengers and #onstruction of <ry latrines Arohibition 0ct,
,? The #oal 3ines "#onservation and <evelopment$ 0ct, *+@7
Laws related to Equality and Empowerment of Women
* The 3aternity .enefit 0ct, *+?*
, The E(ual ;emuneration 0ct, *+@?
Laws related to epri!ed and isad!antaged Sections of the Society
* The .onded Labour 9ystem "0bolition$ 0ct, *+@?
, The #hild Labour "Arohibition = ;egulation$ 0ct, *+1?
Laws related to Social Security
* The 4orkmen's #ompensation 0ct, *+,2
, The Employees' 9tate !nsurance 0ct, *+71
2 The Employees' Arovident /und = 3iscellaneous Arovisions 0ct, *+8,
7 The Aayment of )ratuity 0ct, *+@,
Laws related to Employment " #raining
* The Employment Echanges "#ompulsory Cotification of Eacancies$ 0ct, *+8+
The Employment Echanges "#ompulsory Cotification of Eacancies$ ;ules, *+8+
, The 0pprentices 0ct, *+?*

* The /atal 0ccidents 0ct, *188
, The 4ar !n6uries 5rdinance 0ct, *+72
2 The 4eekly Doliday 0ct, *+7,
7 The Cational and /estival Dolidays 0ct
8 The 4ar !n6uries "#ompensation !nsurance$ 0ct, *+72
? The Aersonal !n6uries "Emergency$ Arovisions 0ct, *+?,
@ The Aersonal !n6uries "#ompensation !nsurance$ 0ct, *+?2
1 The Labour Laws "Eemption from /urnishing ;eturns and 3aintaining ;egister by
#ertain Establishments$ 0ct, *+11
+ The Aublic Liability !nsurance 0ct, *++*
Labour $olicy of India
Labour policy in !ndia has been evolving in response to specific needs of the situation to suit
re(uirements of planned economic development and social 6ustice and has two%fold ob6ectives,
viz., maintaining industrial peace and promoting the welfare of labour.
Labour $olicy %ighlights
#reative measures to attract public and private investment.
#reating new 6obs
Cew 9ocial security schemes for workers in the unorganised sector.
9ocial security cards for workers.
>nified and beneficial management of funds of 4elfare .oards.
;eprioritization of allocation of funds to benefit vulnerable workers.
3odel employee%employer relationships.
Long term settlements based on productivity.
Eital industries and establishments declared as Fpublic utilitiesF.
9pecial conciliation mechanism for pro6ects with investments of ;s.*8- crores or more.
!ndustrial ;elations committees in more sectors.
Labour Law reforms in tune with the times. Empowered body of eperts to suggest
re(uired changes.
9tatutory amendments for epediting and streamlining the mechanism of Labour
0mendments to !ndustrial <isputes 0ct in tune with the times.
Efficient functioning of Labour <epartment.
3ore labour sectors under 3inimum 4ages 0ct.
#hild labour act to be aggressively enforced.
3odern medical facilities for workers.
;ehabilitation packages for displaced workers.
;estructuring in functioning of employment echanges. #omputerization and updating of
data base.
;evamping of curriculum and course content in industrial training.
Boint cell of labour department and industries department to study changes in laws and
#he &actories 'ct( )*+,
*. To ensure ade(uate safety measures and to promote the health and welfare of the
workers employed in factories.
,. To prevent haphazard growth of factories through the provisions related to the approval of
plans before the creation of a factory.
'pplicability of the 'ct
*. 0pplicable to the whole of !ndia including Bammu = Gashmir.
,. #overs all manufacturing processes and establishments falling within the definition of
2. 0pplicable to all factories using power and employing *- or more workers, and if not
using power, employing ,- or more workers on any day of the preceding *, months.
Scheme of the 'ct
*. The 0ct consists of *,- 9ections and 2 9chedules.
,. 9chedule * contains list of industries involving hazardous processes
2. 9chedule , is about permissible level of certain chemical substances in work
7. 9chedule 2 consists of list of notifiable diseases.
Important pro!isions the 'ct
&acilities and .on!eniences % The factory should be kept clean. I9ection **J. There should be
arrangement to dispose of wastes and effluents. I9ection *,J. Eentilation should be ade(uate.
;easonable temperature for comfort of employees should be maintained. I9ection *2J. <ust and
fumes should be controlled below permissible limits. I9ection *7J. 0rtificial humidification should
be at prescribed standard level. I9ection *8J. 5vercrowding should be avoided. I9ection *?J.
0de(uate lighting, drinking water, latrines, urinals and spittoons should be provided. I9ections *@
to *+J. 0de(uate spittoons should be provided. I9ection ,-J.
Welfare % 0de(uate facilities for washing, sitting, storing cloths when not worn during working
hours. I9ection 7,J. !f a worker has to work in standing position, sitting arrangement to take short
rests should be provided. I9ection 77J. 0de(uate /irst aid boes shall be provided and
maintained I9ection 78J.
&acilities in case of large factories % /ollowing facilities are re(uired to be provided by large
factories % K 0mbulance room if 8-- or more workers are employed K #anteen if ,8- or more
workers are employed. !t should be sufficiently lighted and ventilated and suitably located.
I9ection 7?J. K ;est rooms / shelters with drinking water when *8- or more workmen are
employed I9ection 7@J K #rLches if 2- or more women workers are employed. I9ection 71J K /ull
time 4elfare 5fficer if factory employs 8-- or more workers I9ection 7+J K 9afety 5fficer if *,---
or more workmen are employed.
Wor/ing %ours % 0 worker cannot be employed for more than 71 hours in a week. I9ection 8*J.
4eekly holiday is compulsory. !f he is asked to work on weekly holiday, he should have full
holiday on one of three days immediately or after the normal day of holiday. I9ection 8,"*$J. De
cannot be employed for more than + hours in a day. I9ection 87J. 0t least half an hour rest should
be provided after 8 hours. I9ection 88J. Total period of work inclusive of rest interval cannot be
more than *-.8 hours. I9ection 8?J. 0 worker should be given a weekly holiday. 5verlapping of
shifts is not permitted. I9ection 81J. Cotice of period of work should be displayed. I9ection ?*J.
O!ertime Wages % !f a worker works beyond + hours a day or 71 hours a week, overtime wages
are double the rate of wages are payable. I9ection 8+"*$J. 0 workman cannot work in two
factories. There is restriction on double employment. I9ection ?-J. Dowever, overtime wages are
not payable when the worker is on tour. Total working hours including overtime should not eceed
?- in a week and total overtime hours in a (uarter should not eceed 8-. ;egister of overtime
should be maintained. % % 0n employee working outside the factory premises like field workers
etc. on tour outside head(uarters are not entitled to overtime. M ; 0nanthan v. 0very !ndia
*+@,"7,$ /B; 2-7 "3ad D#$ K <irector of 9tores v. A 9 <ube *+@1 Lab !# 2+- N 8, /B; ,++ N
*+@1 ! LLC 7?7 N 2? /L; 7,-.
Employment of Women % 0 woman worker cannot be employed beyond the hours ? a.m. to @.--
pm. 9tate )overnment can grant eemption to any factory or group or class of factories, but no
woman can be permitted to work during *- A3 to 8 03. 9hift change can be only after weekly or
other holiday and not in between. I9ection ??J.
0ight Shift for women1
/actories 0ct is proposed to be amended to allow night shift for women workers. The )overnment
has decided to amend 9ection ?? of the /actories 0ct, *+71 to allow employment of women
workers between @.-- pm and ?.-- am. The demand of women's organisations and in tune with
the present economic globalization, the )overnment has decided to bring in then re(uired
changes in the 0ct. This fleibility would be available to all manufacturing units including the
apparel sector. This decision has been taken after meetings with the representatives of the
employers and the trade unions. The proposed .ill will empower the 9tate )overnments for
allowing the necessary fleibility in employment of women during night shift in factories.
The proposed amendment would inter%alia provide that the employer has to ensure occupational
safety and ade(uate protection to the women workers. Dowever, the 9tate )overnment or any
person authorised by it would be allowing employment of women during night only after
consulting the workers or their representative organisations and concerned employers or their
representatives. The 9tate )overnments are also empowered to frame their own rules for
allowing such permissions.
.hild Employment % #hild below age of *7 cannot be employed. I9ection ?@J. #hild above *7
but below *8 years of age can be employed only for 7.8 hours per day or during the night.
I9ection @*J. De should be certified fit by a certifying surgeon. I9ection ?1J. De cannot be
employed during night between *- pm to ? am. I9ection @*J. 0 person over *8 but below *1 years
of age is termed as Hadolescent'. De can be employed as an adult if he has a certificate of fitness
for a full day&s work from certifying surgeon. 0n adolescent is not permitted to work between @ pm
and ? am. I9ection @-J. There are more restrictions on employment of female adolescent. % %
;egister of child workers should be maintained. I9ection @2J.
isplay on 0otice 2oard % 0 notice containing abstract of the /actories 0ct and the rules made
thereunder, in English and local language should be displayed. Came and address of /actories
!nspector and the certifying surgeon should also be displayed on notice board. I9ection *-1"*$J.
0otice of 'ccidents( iseases Etc3 % Cotice of any accident causing disablement of more than
71 hours, dangerous occurrences and any worker contacting occupational disease should be
informed to /actories !nspector. I9ection 11J. Cotice of dangerous occurrences and specified
diseases should be given. I9ections 110 and 1+J.
Obligation regarding %a4ardous $rocesses 5 Substances % !nformation about hazardous
substances / processes should be given. 4orkers and general public in vicinity should be
informed about dangers and health hazards. 9afety measures and emergency plan should be
ready. 9afety #ommittee should be appointed.
.hild Labour 6$rohibition " Regulation7 'ct( )*,8
!n !ndia, there are a number of 0cts which prohibit the employment of children below *7 years
and *8 years in certain specified employments. Dowever, there is no procedure laid down in any
law for deciding in which employments, occupations or processes the employment of children
should be prohibited. There is also no law to regulate the working conditions of children in most of
the employments where they are not banned from working and are working under etremely
shady and (uestionable conditions.
Ob-ecti!es of .hild Labour 6$rohibition " Regulation7 'ct( )*,8
"i$ .an the employment of children, i.e. those who have not completed their fourteenth
year, in specified occupations and processesO
"ii$ Lay down a procedure to decide modifications to the 9chedule of banned
occupations or processesO
"iii$ ;egulate the conditions of work of children in employments where they are not
prohibited from workingO
"iv$ Lay down enhanced penalties for employment of children in violation of the
provisions of this 0ct, and other 0cts which forbid the employment of childrenO
"v$ To obtain uniformity in the definition of &child& in the related laws.
Scheme of the 'ct The 0ct consists of ,? 9ections and * 9chedule with , Aarts.
*. Aart 0 consists of list of occupations where child labour is banned.
,. Aart . consists of list of processes where child labour is banned.
Important $ro!isions of the 'ct
Who is a child? 0ccording to the definition given u/s ,"ii$ of the 0ct, a child means a person who
has not completed his fourteenth year of age.
Where is the child labour prohibited to wor/? Co child is permitted to work in any the
occupations set forth in Aart 0 of the 9chedule or any workshop wherein any of the processes set
forth in Aart . of the 9chedule is carried on. "9ection 2$
E9emption1 The above prohibition does not apply to any workshop wherein any process is
carried on by the occupier with the aid of his family or to any school established by, or receiving
assistance or recognition from, )overnment.
Where child labour is permitted? Ecept the prohibitory occupations set forth in Aart 0 or
processes set forth in Aart . of the 9chedule, child labour is permitted to be employed but the
conditions of their work is re(uired to be regulated in accordance with Aart !!! of the 0ct.
Responsibilities of employers towards child labour1 Alease refer to the note regarding the
responsibilities of the employer for the proper implementation of the 0ct and the ;ules.
$enalties1 /or the contravention of 9ection 2 a person is punishable with not less than three
months imprisonment which may etend to one year or with fine not less than ;s.*-,---/% rupees
which may be etended up to ;s. ,-,---/% or with both. /or other offence, the punishment may
be simple imprisonment up to one month or with fine up to ;s. *-,---/% of both. 0 conviction u/s
?@ of the /actories 0ct, *+71 or u/s ,* of the 3otor Transport 4orkers 0ct, *+?* will attract the
penalties under the #hild Labour "Arohibition = ;egulation$ 0ct, *+1?.
Salient &eatures of Legislati!e $ro!isions $rohibiting and Regulating Employment of
*. 0s per the #hild Labour "Arohibition = ;egulation$ 0ct, *+1? Pchild means a person who
has not completed is *7th year of age.
,. The 0ct prohibits employment of children in *2 occupations and 8@ processes contained
in Aart 0 = . of the 9chedule to the 0ct "9ection 2$.
2. >nder the 0ct, a Technical 0dvisory #ommittee is constituted to advice for inclusion of
further occupations = processes in the 9chedule.
7. The 0ct regulates the condition of employment in all occupations and processes not
prohibited under the 0ct "Aart !!!$.
8. 0ny person who employs any child in contravention of the provisions of 9ection 2 of the
0ct is liable for punishment with imprisonment for a term which shall not be less than
three months but which may etend to one year or with fine which shall not be less than
;s *-,--- but which may etend to ;s ,-,--- or both "9ection *7$.
?. The #entral and the 9tate )overnments enforce the provisions of the 0ct in their
respective spheres.
Employment of children as domestic ser!ants and in dhabas banned from October :;;81
The government has decided to prohibit employment of children as domestic servants or servants
or in dhabas "roadside eateries$, restaurants, hotels, motels, teashops, resorts, spas or in other
recreational centres. The ban has been imposed under the #hild Labour "Arohibition =
;egulation$ 0ct, *+1? and will be effective from *-th 5ctober ,--?. The 3inistry of Labour has
recently issued a notification to this effect giving three%month mandatory notice. The 3inistry has
warned that anyone employing children in these categories would be liable to prosecution and
other panel action under the 0ct.
2onded Labour System 6'bolition7 'ct( )*<8
Ob-ecti!e1 The ob6ect of the 0ct is to provide for the abolition of bonded labour system with a
view to preventing the economic and physical eploitation of the weaker 9ections of the people
and for matters connected therewith or incidental thereto.
Scheme of the 'ct
The 0ct consists of ,@ 9ections with some of the important 9ections listed below:
, <efinitions
2 0ct to Dave 5verriding Effect
7 0bolition of .onded Labour 9ystem
8 0greement, #ustom, Etc., to be Eoid
? Liability to ;epay .onded debt to 9tand Etinguished
@ Aroperty of .onded Labourer to be freed from 3ortgage, Etc.
1 /reed .onded Labourer Cot to be Evicted from Domestead, etc.
+ #reditor not to 0ccept Aayment 0gainst Etinguished <ebt
*- 0uthorities 4ho may be 9pecified for !mplementing the Arovisions of this 0ct
** <uty of <istrict 3agistrate and other officers to ensure credit
*, <uty of <istrict 3agistrate and 5fficers 0uthorised by Dim
*2 Eigilance #ommittee
*7 /unctions of Eigilance #ommittee
*8 .urden of Aroof
*? Aunishment for Enforcement of .onded Labour
*@ Aunishment for 0dvancement of .onded <ebt
*1 Aunishment for Etracting .onded Labour under the .onded Labour 9ystem
Aunishment for 5mission or /ailure to restore possession of Aroperty to .onded
,- 0betment to be an 5ffence
,* 5ffences to be Tried by Eecutive 3agistrates
,, #ognizance of 5ffences
,2 5ffences by #ompanies
,7 Arotection of 0ction Taken in )ood /aith
,8 Burisdiction of #ivil #ourts .arred
System of 2onded Labour and its forms: !t is outcome of customary obligations, forced labour,
beggar or indebtedness under which a debtor agrees to render service. !n different parts of the
country, it was known by the different names such as 0diyamar, baramasia, basahya, bethu,
bhagela, cherumar, garru%galu hari, harwai, holya, 6ana 6eetha, kamiya, khundit%mundit, kuthia,
lakhari, mun6hi, mat, munish system, nit%ma6door, paleru, paduyal, pannayilal, sagri, san6i,
san6awat, sewak, sewakia, seri, vetti.
Who is bonded Labour? 0ccording to the definition given in 9ection ,"g$ of the 0ct, bonded
labour means service arising out of loan/debt/advance. !t represents the relationship between a
creditor and a debtor wherein the debtor undertakes to mortgage his services or the services of
any of his family members to the creditor for a specified or unspecified period with or without
wages accompanied by denial of choice of alternative avenues of employment, or to deny him
freedom of movements, then the person would normally be covered under the definition of a
bonded labour.
Whom to approach in case of bondage? The aggrieved person or any person on his behalf
can approach to the <istrict 3agistrate who is chairman of the Eigilance #ommittee constitute
under the 0ct and has been entrusted with certain duties and responsibilities for implementing the
provisions of the 0ct. 3atter can also be brought to the notice of the 9ub <ivisional 3agistrate of
the area or any other person who is a member of the Eigilance #ommittee of <istrict or 9ub%
Relief a!ailable to the !ictim: The bonded labour is to be immediately released from the
bondage. Dis liability to repay bonded debt is deemed to have been etinguished. /reed bonded
labour shall not be evicted from his homesteads or other residential premises which he was
occupying as part of consideration for the bonded labour. 0 rehabilitation grant of ;s. *,-,---/% to
each of the bonded labour is to be granted and assistance for his rehabilitation provided.
$enalties1 The offence under the 0ct is cognizable and bailable any person who is contravenes
provisions of the act is punishable with imprisonment for a term which may etend to three years
and also with a fine which may etend to two thousand rupees. 4.e.f. *.8.,--- ";s. 7---/% from
*+@1, ;s. ?,8-/% w.e.f. *.,.1? = ;s. *-,---/% w.e.f. *.7.+8$
#he Employment E9changes 6.ompulsory 0otification
of Vacancies7 'ct( )*=*
The main purpose of the 0ct is to provide for the compulsory notification of vacancies to
employment echanges. The employer is re(uired on a compulsory basis, to notify to the
Employment Echanges all vacancies other than vacancies in unskilled categories, temporary
vacancies and vacancies proposed to be filled through promotion and tender to the Employment
Echanges, return relating to the staff strengths at regular intervals.
The 0ct etends to the whole of !ndia.
'pplication of the 'ct:
The 0ct covers the employers in establishments both in public and private sectors. The 0ct is
applicable to establishments which are engaged in non%agricultural activities and employing ,8 or
more workers. The enforcement of the 0ct is the responsibility of 9tates and >nion Territories.
3ost of the 9tates/>nion Territories have set up special enforcement machinery for this purpose.
'ct not to apply in relation to certain !acancies:
The 0ct shall apply to the following category of vacancies:
*$ !n any employment in agriculture "including horticulture$ in establishment in private sector
other than employment as agricultural or farm machinery operativesO
,$ !n any employment in domestic serviceO
2$ !n any employment the total duration of which is less than 2 monthsO
7$ !n any employment which re(uires unskilled office workO
8$ !n any employment related to the staff of Aarliament.
!n addition, the 0ct shall not apply to the following vacancies unless the #entral )overnment
otherwise directs through notification in its 5fficial )azette:
*$ Eacancies which are proposed to be filled through promotion
,$ Eacancies which are proposed to filled through absorption of surplus staff of any branch
or department of the same establishment
2$ Eacancies which are proposed to be filled through the result of any eamination
conducted or interview held by, or on recommendation of, any independent agency such
as >nion or 9tate Aublic 9ervice #ommission and the like.
4) Eacancies in an employment which carries a remuneration of less than sity rupees in a
month. "9ection 2$.
0otification of !acancies to Employment E9changes:
9ection 7 of the 0ct provides for notification of vacancies to employment echange. The employer
in every establishment in public sector is re(uired to notify any vacancy before filling it up, to the
prescribed employment echanges.
The 9ection further re(uires an employer in every establishment tin private sector or every
establishment pertaining to any class or category of establishments in private sector to notify to
the prescribed employment echanges from such date as may be specified in the notification
issued by the appropriate )overnment in the 5fficial )azette.
9ection 7"2$ provides that the manner of notification of vacancies and the particulars of
employments having such vacancies should be such as may be prescribed.
9ection 7"7$ says that the employer's obligation is only to notify the vacancy to the employment
echange. The 0ct does not impose any obligation on an employer to recruit any person through
employment echange to fill the vacancy merely because the vacancy has been notified as
re(uired by this 0ct.
Employment E9changes to which !acancies are to be notified:
;ule 2 of The Employment Echanges "#ompulsory Cotification of Eacancies$ ;ules, *+?-, says
that the vacancies are to be notified either to the #entral Employment Echange or Local
Employment Echange, as the case may be.
The #entral Employment Echange means the Employment Echange established by the
)overnment of !ndia, 3inistry of Labour and Employment and to which the following vacancies
shall be notified:
Eacancies in posts of a technical and scientific nature carrying a basic pay of ;s. *,7-- or
more per month occurring in establishments in respect of which the #entral )overnment
is the appropriate )overnment under the 0cctO and
Eacancies which an employer may desire to be circulated to the employment echanges
outside the 9tate or >nion Territory to which the establishment is situated.
The Local Employment Echange means the employment echange "the #entral Employment
Echange$ notified in the 5fficial )azette by the 9tate )overnment or the 0dministration or >nion
Territory as having 6urisdiction over the area in which the establishment concerned is situated or
over specified classes or categories of establishments of vacancies.
Eacancies of all types other than those which are re(uired to be notified to #entral Employment
Echange, shall be notified to these local employment echanges.
Right of 'ccess to Records or ocuments:
9uch officer of the )overnment as may be prescribed in this behalf, or nay person authorized by
him in writing, shall have access to any relevant record or document in the possession of any
employer re(uired to furnish any information or returns under 9ection 8 of this 0ct. 9uch officer is
also empowered to enter at any reasonable time, any premises where he believes that such
record or document to be and inspect and take copies of relevant records or documents or ask
any (uestion necessary for obtaining information re(uired under that 9ection "9ection ?$.
.ogni4ance of Offences > Co prosecution for an offence under this 0ct shall be instituted ecept
by, or with the sanction of, such officer of )overnment as may be prescribed in this behalf or any
person authorised by that officer in writing "9ection 1$.
$rotection of action ta/en in good faith > Co suit, prosecution or other legal proceedings shall
lie against any person for anything which is in good faith done or intended to be done under this
0ct "9ection +$.
'pprentices 'ct( )*8)
The main purpose of the 0ct is to provide practical training to technically (ualified persons in
various trades. The ob6ective is promotion of new skilled manpower. The scheme is also etended
to engineers and diploma holders.
The 0ct applies to areas and industries as notified by #entral government. I9ection *"7$J.
Scheme of the 'ct
There are 21 9ections in total and * 9chedule. This 9chedule is about modifications in the
4orkmen's #ompensation 0ct, *+,2 w.r.t its application to apprentices under the 0pprentices 0ct,
Obligation of Employer
Every employer is under obligation to provide the apprentice with the training in his trade
in accordance with the provisions of this 0ct and the rules made there under.
!f the employer is not himself (ualified in the trade, he has to ensure that a person who
possesses the prescribed (ualification is placed in charge of the training of the
Every employer has to provide ade(uate instructional staff, possessing such
(ualifications as may be prescribed for imparting practical and theoretical training and
facilities for trade test of apprenticesO and
Every employer is under obligation to take apprentices in prescribed ratio of the skilled
workers in his employment in different trades. I9ection **J.
!n every trade, there will be reserved places for scheduled castes and schedules tribes.
I9ection 20J. ;atio of trade apprentices to workers shall be determined by #entral
Employer can engage more number of apprentices than prescribed minimum. I9ection
The employer has to make arrangements for practical training of apprentice I9ection
Employer will pay stipends to apprentices at prescribed rates. !f the employees are less
than ,8-, 8-Q of cost is shared by )overnment. !f employer is employing more than ,8-
workers, he has to bear full cost of training.
Obligations of 'pprentices:
Every trade apprentice undergoing apprenticeship training shall have the following obligations,
To learn his trade conscientiously and diligently and endeavour to (ualify himself as a
skilled craftsman before the epiry of the period of trainingO
To attend practical and instructional classes regularlyO
To carry out all lawful orders of his employer and superiors in the establishmentsO and
To carry out his obligations under the contract of apprenticeship.
!n case of graduate or technician apprentice or technician "vocational$ apprentice, apart from the
aforestated obligations, the 0ct imposes further obligation to learn his sub6ect in Engineering or
Technology or Eocational #ourse. "9ection *,$
Who can be an 'pprentice % 0pprentice should be of minimum age of *7 years and he should
satisfy the standard of education and physical fitness as prescribed. I9ection 2J.
Reser!ation of training places for scheduled castes:
9ection 20 provides that in every designated trade, training places shall be reserved by the
employer for the 9cheduled #astes and 9cheduled Tribes "as defined in clauses ",7$ and ",8$ of
0rticle 2?? of the #onstitution$ and where there is more than one designated trade in an
establishment, such training places shall be reserved on the basis on the total number of
apprentices in all the designated trades in such establishment. The reservation shall be such as
may be prescribed having regard to the population of the 9cheduled #astes and 9cheduled
Tribes in the 9tate concerned.
uration of #raining % <uration of training period and ratio of apprentices to skilled workers for
different trades has been prescribed in 0pprenticeship ;ules, *++*. <uration of 0pprenticeship
may be from ? months to 7 years depending on the trade, as prescribed in ;ules. Aeriod of
training is determined by Cational #ouncil for training in Eocational Trades "established by
)overnment of !ndia$%"9ection ?$.
.ontract with 'pprentice M 0pprentice appointed has to eecute a contract of apprenticeship
with employer. The contract has to be registered with 0pprenticeship 0dviser. !f apprentice is
minor, agreement should be signed by his guardian. I9ection 7"*$J 0pprentice is entitled to casual
leave of *, days, medical leave of *8 days and etraordinary leave of *- days in a year.
ate of commencement of apprenticeship training:
The apprenticeship training shall be deemed to have commenced on the date on which the
contract of apprenticeship has been entered into.
The employer shall send the contract to the 0pprenticeship adviser for registration within
three months of the date on which it was signed ";ule ?$.
The contract shall be registered by the 0pprenticeship 0dviser on being satisfied that the
person described as an apprentice in the said contract is (ualified under this 0ct.
;egistration of contract of apprenticeship under 9ection 7"7$ is not a necessary
ingredient of definition of apprentice. ".haskaran v. G9E. "*+1?$ * LLC 1?+$.
Employees $ro!ident &und and ?iscellaneous
$ro!isions 'ct( )*=:
R To make provisions for the future of the industrial worker after he retires or for his
dependents in the case of his early death.
R #ompulsory Arovident /und
R /amily Aension
R <eposit linked insurance
Scope and co!erage
R 0pplication to factories and establishments employing ,- or more persons.
R #an be made applicable by central government to establishments employing less than ,-
persons or if the ma6ority of employees agree.
R Ecludes establishments employing 8- or more persons or ,- or more persons but less
than 8- persons, until the epiry 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.
R 0pplicable to all persons who are employed directly or indirectly through contractors in
any kind of work.
R Employees drawing pay not eceeding ;s. ?,8--/% per month.
Schemes framed under the 'ct
The Employees' Arovident /unds 9chemes, *+8,O
The Employees' Aension 9cheme, *++8 and
The Employees' <eposit Linked !nsurance 9cheme, *+@?
R 0part from terminal disbursal of non%refundable withdrawals for Life !nsurance Aolicies
R Douse building
R 3edical treatment
R 3arriage
R Digher education
R /amily pension
R ;etirement%cum%withdrawal benefits
R <eposit linked insurance 0mount e(ual to the average balance in Arovident /und of
deceased sub6ect to a maimum of ;s. ?8,---/ %
0s per Areamble to the 0ct, the EA/ 0ct is enacted to provide for the institution of provident
funds, pension fund and deposit lined insurance fund for employees in factories and other
establishments. The Employees' Arovident /unds and 3iscellaneous Arovisions 0ct is a social
security legislation to provide for provident fund, family pension and insurance to employees.
Employee has to pay contribution towards the fund. Employer also pays e(ual contribution. The
employee gets a lump sum amount when he retires, which will be useful to him after retirement.
The 0ct covers three schemes i.e. A/ "Arovident /und scheme$, /A/ "/amily Aension /und
scheme$ and E<L! "Employees <eposit Linked !nsurance scheme$.
The EA/ 0ct contains basic provisions in respect of applicability, eligibility, damages, appeals,
recovery etc. The three schemes formed by #entral )overnment under the 0ct make provisions
in respect of those schemes.
'pplicability of the 'ct > The 0ct applies to "a$ Every establishment which is a factory engaged
in industry specified in 9chedule ! to the 0ct and in which ,- or more persons are employed and
"b$ any other establishment or class of establishment employing ,- or more persons which may
be specified by #entral government by notification in official gazette. % % #entral )overnment can
also apply provisions of the 0ct to any establishment even if it employs less than ,- persons.
I9ection *"2$J.
!n RPFC v. T S Hariharan *+@* Lab !# +8* "9#$, it was held that temporary workers should not
be counted to decide whether the 0ct would apply.
Even if the provisions of A/ 0ct are not applicable in a particular establishment, if employer and
ma6ority of employees agree, the #entral Arovident /und #ommissioner can apply the provisions
to that establishment by issuing a notification in 5fficial )azette. I9ection *"7$J. 5nce the
provisions of 0ct become applicable, it continues to be applicable even if number of employees
fall below ,-. I9ection *"8$J.
#he Employees State Insurance 'ct 6ESI 'ct7( )*+,
The E9! 0ct has been passed to provide for certain benefits to employees in case of sickness,
maternity and employment in6ury and to make provisions for related matters. 0s the name
suggests, it is basically an Hinsurance' scheme i.e. employee gets benefits if he is sick or disabled.
E9!# % Employees 9tate !nsurance #orporation "E9!#$ has been formed to supervise the scheme
under 9ection 2 of the 0ct. The #orporation supervises and controls the E9! scheme.
0o ismissal or $unishment uring $eriod of Sic/ness % 9ection @2 of the 0ct provides that
no employer shall dismiss, discharge or reduce or otherwise punish an employee during the
period employee is in receipt of sickness benefit or maternity benefit. De also cannot dismiss,
discharge or otherwise punish employee when he is in receipt of disablement benefit or is under
medical treatment or is absent from work due to sickness.
This gives protection to employee when he is in receipt of sickness benefit or maternity benefit.
Employer cannot take disciplinary action against employee in such cases. This provision is
grossly misused by employees.
Dowever, in Buckingham & Carnatic Co v. Venkatayya % 0!; *+?7 9# *,@, N *+?2"@$ /L; 272 N
"*+?7$ 7 9#; ,?8 N "*+?2$ , LLB ?21 N ,8 /B; ,8 "9#$, it was rightly held that this provision "of
9ection @2$ is applicable only in case of punitive action for all kinds of misconduct during which
employee has received sickness benefits. This protection is not applicable in case of
abandonment of employment or when termination is automatic as per contract. M followed in
;ajveer Singh v. Judge *++? LL; ?* ";a6 D#$, where it was hold that provisions of 9ection @2
are not applicable when termination of an employee is automatic.
Applicability of ESI Scheme - The scheme is applicable to all factories. I9ection *"7$J. The
0ppropriate )overnment can also make it applicable to any other industrial, commercial,
agricultural or other establishments, by issuing notification and giving ? month notice. I9ection
Thus, E9! 0ct can be made applicable to Hshops' also. Dowever, since )overnment has to provide
for hospitals and medical facilities, the 0ct can be made applicable to different parts of 9tate at
different dates. Thus, if a factory is at a place where E9!# is unable to provide medical facilities,
E9! 0ct may not be made applicable to that area. )overnment can eempt a factory or
establishment or persons or class of persons from provisions of E9! 0ct, if the employees are
getting better medical facilities/ Ie.g. if )overnment is convinced that the factory itself is providing
very good medical facilities e.g. like T!9#5J.
Definition of factory! a" per ESI Act - The H/actory' means any premises where manufacturing
process is carried out. !f manufacture is without aid of power, the 0ct is applicable if persons
employed are at least ,-. !f manufacture is with aid of power, the 0ct applies if persons employed
are at least *-. I9ection ,"*,$J. % % Dowever, Hmines' have been ecluded. % % H3anufacturing
process' has same meaning as defined under /actories 0ct. I9ection ,"*700$J.
5ne a factory or establishment is covered, it continues to be covered even if number of
employees reduce. I9ection *"?$J
$ayment of @ratuity 'ct( )*<:
)ratuity is a lump sum payment to employee when he retires or leaves service. !t is basically a
retirement benefit to an employee so that he can live life comfortably after retirement. Dowever,
under )ratuity 0ct, gratuity is payable even to an employee who resigns after completing at least
8 years of service.
!n <T# ;etired Employees v. <elhi Transport #orporation ,--*"7$ 9#0LE 2- N ,--* 0!; 9#4
,--8, it was observed that gratuity is essentially a retiring benefit which as per 9tatute has been
made applicable on voluntary resignation as well. )ratuity is reward for good, efficient and faithful
service rendered for a considerable period.
'.# $ROVIES &OR ?I0I?A? @R'#AI#B O0LB M The )ratuity 0ct provides only for minimum
gratuity payable. !f employee has right to receive higher gratuity under a contract or under an
award, the employee is entitled to get higher gratuity. I9ection 7"8$J.
Employers liable under the scheme % The 0ct applies to every factory, mine, plantation, port,
and railway company. !t also applies to every shop and establishment where *- or more persons
are employed or were employed on any day in preceding *, months. I9ection*"2$J. 9ince the 0ct
is also applicable to all shops and establishments, it will apply to motor transport undertakings,
clubs, chambers of commerce and associations, local bodies, solicitor's offices etc. , if they are
employing *- or more persons.
Employees eligible for gratuity M 'Employee' means any person "other than apprentice$
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 epress or implied, and whether such person is
employed in a managerial or administrative capacity. Dowever, it does not include any
#entral/9tate )overnment employee. I9ection ,"e$J. Thus, the 0ct is applicable to all employees %
workers as well as persons employed in administrative and managerial capacity.
)ratuity is payable to a person on "a$ resignation "b$ termination on account of death or
disablement due to accident or disease "c$ retirement "d$ death. Cormally, gratuity is payable only
after an employee completes five years of continuous service. !n case of death and disablement,
the condition of minimum 8 years' service is not applicable. I9ection 7"*$J.
The 0ct is applicable to all employees, irrespective of the salary.
'mount of gratuity payable % )ratuity is payable S *8 days wages for every year of completed
service. !n the last year of service, if the employee has completed more than ? months, it will be
treated as full year for purpose of gratuity. % % !n case of seasonal establishment, gratuity is
payable S @ days wages for each season. I9ection 7",$J.
4ages shall consist of basic plus <.0, as per last drawn salary. Dowever, allowances like bonus,
commission, D;0, overtime etc. are not to be considered for calculations. I9ection ,"s$J.
!n case of employees paid on monthly wages basis, per day wages should be calculated by
dividing monthly salary by ,? days to arrive at daily wages e.g. if last drawn salary of a person
"basic plus <0$ is ;s. ,,?-- per month, his salary per day will be ;s. *-- ",,?-- divided by *--$.
Thus, the employee is entitled to get ;s. *,8-- I*8 days multiplied by ;s. *-- daily salaryJ for
every year of completed service. !f he has completed 2- years of service, he is entitled to get
gratuity of ;s. 78,--- ";s. *,8-- multiplied by 2-$. 3aimum gratuity payable under the 0ct is ;s.
2.8- lakhs "the ceiling was ;s. *,--,--- which was increased to ,.8- lakhs on ,7.+.+@ by an
ordinance which was later increased to ;s 2.8- lakhs while converting the ordinance into 0ctJ.
$ayment of 2onus 'ct( )*8=
The term Pbonus has not been defined in the Aayment of .onus 0ct, *+?8. 4ebster's
!nternational <ictionary, defines bonus as Psomething given in addition to what is ordinarily
received by or strictly due to the recipient. The 5ford #oncise <ictionary defines it as
Psomething to the good into the bargain "and as an eample$ gratuity to workmen beyond their
To calculate and pay the annual bonus as re(uired under the 0ct
To submit an annul return of bonus paid to employees during the year, in /orm <, to the
!nspector, within 2- days of the epiry of the time limit specified for payment of bonus.
To co%operate with the !nspector, produce before him the registers/records maintained,
and such other information as may be re(uired by them.
To get his account audited as per the directions of a Labour #ourt/Tribunal or of any such
other authority.
0n employer has the following rights:
;ight to forfeit bonus of an employee, who has been dismissed from service for fraud,
riotous or violent behaviour, or theft, misappropriation or sabotage of any property of the
;ight to make permissible deductions from the bonus payable to an employee, such as,
festival/interim bonus paid and financial loss caused by misconduct of the employee.
;ight to refer any disputes relating to application or interpretation of any provision of the
0ct, to the Labour #ourt or Labour Tribunal.

ELI@I2ILI#B &OR 2O0AS I& WORCE &OR ?I0I?A? D; 'BS % Every employee shall be
entitled to be paid be his employer in an accounting year, bonus, in accordance with the
provisions of this 0ct, provided he has worked in the establishment for not less than thirty working
days in that year. Isection 1J
$ayment of Wages 'ct( )*D8
R To ensure regular and prompt payment of wages and to prevent the eploitation of a
wage earner by prohibiting arbitrary fines and deductions from his wages.
'pplicability of the 'ct
R 0pplication for payment of wages to persons employed in any factory.
R Cot applicable to wages which average ;s ?,8-- per month or more.
R 4ages include all remuneration, bonus, or sums payable for termination of service, but
do not include house rent reimbursement, light vehicle charges, medical epenses, T0, etc.
Important pro!isions of the 'ct
R ;esponsibility of the employer for payment of wages and fiing the wage period.
R Arocedures and time period in wage payment.
R Aayment of wages to discharged workers.
R Aermissible deductions from wages.
R Cominations to be made by employees.
R Aenalties for contravention of the 0ct.
R E(ual remuneration for men and women.
R 5bligations and rights of employers.
R 5bligations and rights of employees.
The 0ct is to regulate payment of wages to certain class of employed persons. The main purpose
of this 0ct is to ensure regular and timely payment of wages to the employed persons, to prevent
unauthorized deductions being made from wages and arbitrary fines being imposed on the
employed persons. The 0ct etends to the whole of !ndia.
'pplication of the 'ct:
The 0ct applies to payment of wages to persons employed in factory or railways. !t also applies to
any Hindustrial or other establishment' specified in 9ection ,"ii$. I9ection *"7$J. H/actory' means
factory as defined in 9ection ,"m$ of /actories 0ct. % % !ndustrial or other establishment specified
in 9ection ,"ii$ are % K Tramway or motor transport services K 0ir transport services K <ock wharf
or 6etty K !nland vessels K 3ines, (uarry or oil%field K Alantation K 4orkshop in which articles are
produces, adopted or manufactured. % % The 0ct can be etended to other establishment by
9tate/#entral )overnment.
Aresently, the 0ct applies to employees drawing wages upto ;s ?,8--. I9ection *"?$J. Every
employer is responsible for payment to persons employed by him on wages. I9ection 2J.
?E'0I0@ O& W'@ES % 4ages means all remuneration epressed in terms of money and
include remuneration payable under any award or settlement, overtime wages, wages for holiday
and any sum payable on termination of employment. Dowever, it does not include bonus which
does not form part of remuneration payable, value of house accommodation, contribution to A/,
traveling allowance or gratuity. I9ection ,"vi$J
%OW W'@ES S%OAL 2E $'I % 4ages can be paid on daily, weekly, fortnightly or monthly
basis, but wage period cannot be more than a month. I9ection 7J. 4ages should paid on a
working day. 4ages are payable on or before @th day after the Hwage period'. !n case of factories
employing more than *,--- workers, wages can be paid on or before *-th day after Hwage period'
is over. I9ection 8"*$J. ICormally, Hwage period' is a Hmonth'. Thus, normally, wages should be paid
by @th of following month and by *-th if the number of employees are *,--- or moreJ. % % 4ages
should be paid in coins and currency notes. Dowever, with authorisation from employee, it can be
paid by che(ue or by crediting in his bank account. I9ection ?J.
EA.#IO0S $ER?ISSI2LE % <eduction on account of absence of duty, fines, house
accommodation if provided, recovery of advance, loans given, income ta, provident fund, E9!
contribution, L!# premium, amenities provided, deduction by order of #ourt etc. is permitted.
3aimum deduction can be 8-Q. Dowever, maimum deduction upto @8Q is permissible if
deduction is partly made for payment to cooperative society. I9ection @J.
&I0ES M 9pecific notice specifying acts and omissions for which fine can be imposed should be
ehibited on notice board etc. 9uch notice can be issued only after obtaining specific approval
from 9tate )overnment. /ine can be imposed only after giving employee a personal hearing. /ine
can be maimum 2Q of wages in a month. /ine cannot be recovered in instalments. I9ection 1J.
Labour Law .oncessions
Labour Laws and SSI
The )overnment of !ndia has made several attempts to revamp, rela and simplify labour laws
relating to 9mall 9cale !ndustries. 5ne of them is the simplification procedure envisaged by the
Labour 0ct enacted in *+11 to assist the small establishments. The 0ct, namely TLabour Laws
"eemption from furnishing returns and maintaining registers by certain establishment$ 0ct, *+11T
covers labour related acts and thus provides:
Establishment employing *-%*+ persons is re(uired to maintain only 2 register and to
submit an annual core return only.
Establishment employing less than *- persons to maintain only * register and submit
only an annual core return.
5nly one !nspector will be responsible for various labour laws, ecept in case of /actory
0ct and .oiler 0ct.
The Labour Aolicies for 9mall 9cale !ndustries is governed by comprehensive laws. The
following laws and policies are applicable for 9mall 9cale !ndustries in !ndia:
*. 0pprentices 0ct, *+?*
,. The .eedi and #igar 4orkers "#onditions of Employment$ 0ct, *+??
2. .onded Labour 9ystem "0bolition$ 0ct, *+@?
7. #hild Labour "Arohibition = ;egulation$ 0ct, *+1?
8. The #hildren "Aledging of Labour$ 0ct, *+22
?. The #ontract Labour ";egulation = 0bolition$ 0ct, *+@-
@. The Employees Arovident /unds and 3isc. Arovisions 0ct, *+8,
1. Employees 9tate !nsurance 0ct, *+71
+. Employers Liability 0ct, *+21
*-. Employment Echange "#ompulsory Cotification of Eacancies$ 0ct, *+8+
**. E(ual ;emuneration 0ct, *+@?
*,. The /actories 0ct, *+71
*2. The !ndustrial <isputes 0ct
*7. The !ndustrial Employment "9tanding 5rders$ 0ct,*+7?
*8. The !nter%state 3igrant 4orkmen ";egulation of Employment and #onditions of
9ervice$ 0ct, *+@+
*?. Labour Laws "Eemption from /urnishing ;eturns = 3aintaining ;egisters by #ertain
Establishments$ 0ct, *+11
*@. 3aternity .enefit 0ct, *+?*
*1. The 3inimum 4ages 0ct, *+71
*+. The Aayment of .onus 0ct, *+?8
,-. The Aayment of )ratuity 0ct, *+@,
,*. The Aayment of 4ages 0ct, *+2?
,,. The 9ales Aromotion Employees "#onditions of 9ervice$ 0ct, *+@?
,2. The 9hops and Establishments 0ct, *+82
,7. The Trade >nion 0ct, *+,?
,8. 4orkmen's #ompensation 0ct, *+,2
,?. The 4eekly Dolidays 0ct, *+7,
,@. The Alantation Labour 0ct, *+8*
Labour Laws and SEE
The )overnment of !ndia has offered a number of incentives both monetary as well as non%
monetary to the units operating in 9EU. !n order to create a conducive business environment in
which the entrepreneurs and enterprises have complete freedom to conduct their business
operations and to remain globally competitive, 9tate )overnments have been empowered to
amend the Labour Laws according to their re(uirements.
Cormal Labour Laws are applicable to 9EUs, which are enforced by the respective state
)overnments. The 9tate )overnments have been re(uested to simplify the procedures/returns
and for introduction of a single window clearance mechanism by delegating appropriate powers to
<evelopment #ommissioners of 9EUs. The following are some of the changes brought in by
9tate )overnments with respect to Labour Law ;egulations:
*. The powers of the Labour #ommissioner are delegated to the designated <evelopment
#ommissioner or other authority in respect of the area within the 9EUs.
,. 3odalities have been devised for the grant of various permissions re(uired from the
Labour #ommissioner within the 9EUs themselves through the stationing of eclusive
personnel for the purpose or through other means so that clearances relating to various
labour laws can be provided at a single point in the 9EUs.
2. Ecept in emergent circumstances, the prior permission of the <evelopment
#ommissioner or other designated authority of the 9EUs would be re(uired for the
conduct of inspections of these agencies of industrial units and other establishments
within the 9EUs.
7. The Aowers of the #hief !nspector of /actories = .oilers are delegated to the designated
<evelopment #ommissioner or other authority in respect of the area within the 9EUs.
8. 3odalities have been devised for grant of various permissions re(uired from the #hief
!nspector of /actories = .oilers within the 9EUs themselves through the stationing of
eclusive personnel for the purpose or through other means so that clearances relating to
various labour laws can be provided at a single point in the 9EUs.
?. Ecept in emergent circumstances, the prior permission of the <evelopment
#ommissioner or other designated authority of the 9EUs would be re(uired for the
conduct of inspections by these agencies of industrial units and other establishments
within the 9EUs.
@. 0ll industrial units and other establishments in the 9EUs area declared as PAublic >tility
9ervice under the provisions of the !ndustrial <isputes 0ct.
1. 9ub6ect to the 9tate Legislature approval and )overnment of !ndia's assent, amendments
shall be proposed to the !ndustrial <isputes 0ct. The proposed amendments include,
inter%alia, limiting the applicability of #hapter E. to industries employing 2-- or more
workmen, etc. 9imilarly, the #ontract Labour ";egulation = 0bolition$ act is proposed to
be amended to eclude certain peripheral service activities. !ncase it is not found feasible
to amend these statues as proposed, similar amendments will be proposed only for units
and establishments within the 9EUs.
+. 9everal provisions of !ndustrial <isputes 0ct and /actories 0ct have been identified which
have created unnecessary hindrances in the smooth functioning of the 9EUs. The 9tate
)overnments have resolved to do away with those provisions or simplify them.
*-. 0part from this, the 9tate )overnments are also empowered to get the inspection done
by some eternal agency regarding the health and safety aspects of the labourers
working in the units of the 9EU.
**. 3any 9tate )overnments have notified have a single reporting format for 9EU units
which would cover all the applicable labour laws.
The following list provides a list of the some of the amendments proposed with respect labour
law regulations:
Which court to approach in case of a labour dispute?
Fudicial System in India
The 6udicial system in !ndia is (uite well%established and independent. The 9upreme #ourt of
!ndia in Cew <elhi is the highest #ourt of 0ppeal. Each 9tate has a Digh #ourt along with
subsidiary <istrict #ourts, which enforce the rule of law and ensure fundamental rights of citizens,
guaranteed by the #onstitution of !ndia.
!ndia has a three%tier court system with a typical !ndian litigation starting from a <istrict #ourt and
reaching its logical conclusion in the 9upreme #ourt of !ndia. The Digh #ourts along with the
various 9tate level forums, situated mostly in the 9tate capitals, constitute the middle rung of this
three%tier system. <istrict level courts are the courts of first instance in dispute resolution ecept
in cases where they are prevented from being so by virtue of lack of pecuniary 6urisdiction. #ases
involving violation of fundamental rights are filed in respective Digh #ourt or 9upreme #ourt.
0 number of special courts and tribunals have been constituted in !ndia to deal with specific
disputes: %
*. Ta Tribunals
,. #onsumer <ispute ;edressal /orums
2. !nsurance ;egulatory 0uthority of !ndia
7. !ndustrial Tribunals
8. <ebts ;ecovery Tribunals
?. #ompany Law .oard
@. 3otor 0ccidents #laims Tribunals
1. Labour #ourts
Where to file?
3ost of the labour disputes are referred to the Labour #ourts/!ndustrial Tribunals through the
<epartment of Labour under the respective 9tate )overnment. The process for labour dispute
starts with filing of a petition before Labour #onciliation 5fficer and in case no compromise is
possible, the said officer sends a failure report to the )overnment. 0fter consideration of the said
report, the )overnment may send a reference to the Labour #ourt/!ndustrial Tribunal. !n certain
matters, the labour dispute can be directly filed in the court concerned.
Labour .ourts These courts are found in every district and they form the courts of original
6urisdiction under which various labour laws and rules are enforced.
'ppellate Labour .ourts These courts hear only the 0ppeals and revisions originating from the
6udgements and orders of the subordinate original labour courts and officers, under the provisions
of various labour and related laws.
a7 4hen an industrial dispute has been referred to a Labour #ourt for ad6udication, it is the
duty of the Labour #ourt to
6i7 Dold proceedings epeditiously, and
6ii7 To submit its award to the appropriate )overnment soon after the conclusion
of the proceedings.
b7 Dowever, no deadline has been laid down with respect to the time within which the
completion of proceedings has to be done. Conetheless, it is epected that these #ourts
hold their proceedings without getting into the technicalities of a #ivil #ourt.
c7 !t has been held that the provisions of 0rticle *2@ of the Limitation 0ct do not apply to
reference of disputes to the Labour #ourts. These #ourts can change the relief granted
by refusing payment of back wages or directing payment of past wages too.
.ourt &ee
Co #ourt fee is payable on the petitions filed before Labour #ourts and !ndustrial Tribunals.