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Labour law (or "labor", or "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.

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


To have uniform standing orders in respect to workers , factories and working relationship. To ensure that the terms and conditions of the employment are known to the employee and thus minimize exploitation of the workers.

To promote industrial peace and harmony by promoting fair industrial practices.

Industrial Relations
Industrial relations is used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct.

Concept of Industrial Relations

The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship.

Actors in the IR system

Actors in the IR system

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis--vis labors. They have the right to hire and fire them. Management can also affect workers interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

Objectives of Industrial Relations

The main objectives of industrial relations system are:-

To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.
To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.


Why Labor Legislation Laws?

Industrialization creates a number of social and economic problems like employment of women and children, minimum wages, trade unions, in sanitary living quarters and deplorable working conditions in the factories, etc. Labor laws are, therefore, enacted to facilitate their solutions, as ordinary civil laws are inadequate to meet them.

Why Labor Legislation Laws?

The State has adopted a progressive policy, and is keeping pace with the labor policy of the Government of India and the standard laid down by the International Labor Organization. These laws also deal with the regulation of industrial relations between the management and the workers.

The Indian Factories Act, 1948

All the Factories Acts from 1934 to 1947 were repealed (cancelled/abolished) and a new Act called the Factories Act, 1948, was enacted. It incorporates several provisions for the welfare of labor. To enforce the provisions of the Act and to look after the general welfare of the employees, Labor Welfare Officers have been provided in the factories. The Indian Factories Act of 1948 provides for the health, safety and welfare of the workers

Contract Labor (Regulation & Abolition) Act , 1970

The objective of the Contract Labor Act is to regulate the employment of Contract Labor in certain establishments and to provide for its abolition in certain circumstances and for manners connected therewith. The Contract Labor Act extends to whole of India.

Areas and industries as notified by the Central Government.

It applies to every establishment or contractor wherein 20 or more workmen are or were employed on any day of the preceding 12 months as contract labor. The appropriate government is empowered to extend the application of the act to any establishment or contractor employing even less than 20 workers as Contract labor

THE CHILD LABOUR (Prohibition and Regulation) ACT, 1986

An Act to prohibit the engagement of children in certain employments and to regulate the conditions of work of children in certain other employments . Child: Child means a person who has not completed his fourteen years of age.

APPLICABILITY: It extends to the whole of India.


The central government may by notification constitute a child Labor technical advisory committee to advise the central govt. for the purpose of addition of occupations to the schedule of the Act. (Section-5).
The Employment of Children Act, prohibits the employment of young children below the age of 14 years in certain risky and unhealthy occupations.



OBJECTIVE: To provide for the registration of trade unions and to define law relating to registered trade unions. APPLICABILITY: It extends to the whole of India. TRADE UNIONS: means any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workmen and employers for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.


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 Industrial Disputes Act, 1947, provides for the

investigation, and settlement of industrial disputes by mediation, conciliation, adjudication and arbitration., there is scope for payment of compensation in cases of lay-off and retrenchment.


2A. 1[ Dismissal, etc., of an individual workman to be deemed to be an industrial dispute.Where any employer discharges, dismisses, retrenches, or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute.]

The Industrial Employment (Standing Orders) Act, 1946

The Industrial Employment (Standing Orders) Act, 1946, requires employers in Industrial establishments to define precisely the conditions of employment under them and make them known to their workmen. These rules, once certified, are binging on the parties for a minimum period of six months.


Act as "conduct of a kind such that it would be unreasonable to require the employer to continue employment".

Serious criminal offence e.g. murder, armed robbery etc. * Serious cases of negligence endangering consumers, staff and/or others. * Being affected by alcohol or drugs whilst on duty. * Property offences e.g. theft, willful damage etc. Any deliberate action which endangers consumers, staff and/or others. Poor performance: Where a staff member is not performing their duties to a satisfactory standard. This applies only to the standards which have been set;



The Minimum Wages Act, 1948, ensures the fixation and revision of minimum rates of wages in respect of certain scheduled industries involving hard labour.

The payment of wages Act, 1936

The payment of wages Act, 1936, regulates the timely payment of wages without any unauthorized deductions by the employers.


An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith . Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.


An act to provide for the payment of equal remuneration to men and women workers and for the prevention of discrimination, on the ground of sex, against women in the matter of employment and for matters connected therewith or incidental thereto Duty of employer to pay equal remuneration to men and women workers for same work or work of similar nature. No discrimination to be made while recruiting men and women workers



The Workmens Compensation Act, 1923, provides for compensation to injured workmen of certain categories and in the case of fatal accidents to their dependants if the accidents arose out of and in the course of their employment. It also provides for payment of compensation in the case of certain occupational diseases.

The Employees State Insurance Act, 1948

The Employees State Insurance Act, 1948, provides for sickness benefit, maternity benefit, disablement benefit and medical benefit.

The Maternity Benefit Act, 1961

The Maternity Benefit Act, 1961, provides for the grant of cash benefits to women workers for specified periods before and after confinements. Paternity leave policies

have also been introduced by various companies.

The Employees Provident Fund Act, 1952

The Employees Provident Fund Act, 1952, seeks to make a provision for the future of industrial worker after he retires or in case he is retrenched, or for his dependents in case of his early death.

The Payment of Gratuity Act, 1972

The Payment of Gratuity Act, 1972 applies to factories and other establishments employing ten or more persons. On completion of five years service, the employees are entitled to payment of gratuity @15 days wages for every completed year of service or part thereof in excess of six months subject to a maximum of Rs.3.50 lakh.

The current maximum limit is applicable from 24.9.1997. The wage ceiling for coverage under the Act has since been removed w.e.f. 24.05.1994 .