INTRODUCTION TO LABOUR LAWS

BY

VINAY GUPTA
3RD AUGUST 2013

What is Law & Labour Laws

Law is a body of Principles, laid down prior to the disputes in which they are applied. Labour Law is that body of laws which deal with conflicts arising due to employment, non employment, conditions of service, benefits, entitlements, etc. of persons employed in an industry or in a commercial establishment

Sources of Law

Legislation:
State (Legislative council and Legislative assembly) Centre - (Parliament: Rajya Sabha and Lok Sabha)

Judicial Pronouncement High Courts and Supreme Court Indian Constitution Fundamental Rights, Directive Principles of State Policy Precedents Customs/ Usages Agreement

Need for Labour Legislation

Objective is two- fold:
To improve the service conditions of Industrial Labour so that they have ordinary amenities of life; To bring about Industrial Peace for improved productivity leading to national prosperity. This is based on social justice, social equity, norms laid down by ILO, and national economy

Main categories of Labour Laws

1. Establishment legislation 2. Employer employee relations

3. Wage related matters

4. Compensation related matters

5. Social Security matters

Establishment Legislation
These legislations mainly deal with matters like Health , Safety Welfare annual leave with wages working hours, and other related matters. Under this head comes the.
Factories Act, Shops and Establishment Act , Contract Labour (Regulation & Abolition) Act.

Industrial Relations/ Employer Employee Relations

The Acts coming under this head deal with matters

relating to employer employee relations.

These Acts are a. Industrial Disputes Act State Acts like Bombay Industrial Relations Act etc b. Industrial Employment standing order Act

-certified standing orders

c. The Trade unions Act 1926

Wage related matters

There are two main legislations under this head: Minimum Wages Act
Deals with fixation of minimum rates of wages etc.

Payment of Wages Act.

Deals with the regulation of payment of wages and deductions as fines/ loans etc.

Compensation related matters

The Acts falling under the head deal with Payment of compensation to workmen in case of sickness employment injury in the course of employment. Payment of maternity benefits to women employees. These Acts are Workmen's compensation Act Employees Sate Insurance Act Maternity benefit Act.

Social Security matters

These Acts provide for service related benefits which are normally paid to the employees during the course of and at the time of cessation of employment. These are - Employees Provident Fund Act.

- Payment of Gratuity Act

- Payment of Bonus Act While Provident fund and Gratuity are paid at the time of cessation of employment; Annual bonus is paid during the course of employment.

Other Labour Enactments

In addition to the above main Acts there are other legislations applicable to certain categories of employees.
Labour welfare Fund Act. Inter State Migration Act. Equal remuneration Act etc Employment Exchanges (CNV) Act The Apprentices Act

Trade Unions Act 1926

Normally means association of workersin an Industry for regulating the relations between workers & employers.. In 1919, with formation of ILO, unions in India started to grow. In 1920, AITUC was formed In 1926, passing of the T U Act gave formal recognition to the workers right to organize.

Industrial Disputes Act 1947

The first enactment for settlement of disputes was Employers & Workmens Dispute Act, 1860. Next was Trade Disputes Act, 1929.
Contained spl. Provision for strikes in p.u. services To provide for conciliation machinery. During II World War, u/R 81-A, conciliation & adjudication compulsorily. To lapse on 1.10.1946.

Finally, Industrial Disputes Act, 1947.

Amended many times. To ensure fair terms of employment to workers; Prevent disputes for safeguarding productivity.

Industrial Employment S.O. Act, 1946

Intends that terms of employment be specific and formally known to employees before they accept the employment. Requires the employer, to define with terms of employment with sufficient precision & display to workmen. This includes conditions of:
Recruitment; Holidays; Disciplinary action etc. Conditions of employment & discharge.

Factories Act 1948

First Factories Act was in 1881 to protect children and provide for health& safety measures. Next amendments in 1891,1911, 1922 & 1934. The Act of 1948 makes detailed provisions for:
Health, Safety & Welfare of workers Working Hours, Aannual Leave with wages Employment of young persons & adolescents etc.

The Contract Labour (R&A) Act, 1970

The idea is not to allow exploitation of labour.
The C L system needs to be abolished. However, wherever it is not possible, working terms and conditions of employment of contract labour needs to be regulated so as to ensure payment of wages and provision of essential amenities.

Minimum Wages Act, 1948

History of labour struggle shows a continuous demand for fair return of labour in various forms. The aim of this Act is to fix a statutory minimum wage for labour in a number of Industries where labour is sweated and is not organized. The minimum wage is based on ethical grounds and is revised periodically. It is different for different type of industry. Min. wage is a must irrespective of profit or fin. Condition of the employer or awailability of workmen on lower wages.

Payment of Wages Act, 1936

In the past, payment of wages was irregular, and also had unreasonable deductions The Act was passed to regulate the payment of wages It fixed the last date of payment of wages. It made provisions for types of deductions allowed and limiting the amount of deductions from wages and salaries.