Indian Labour Law

Everything you need to know about Indian Labor Law

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Better known as the law of employment, Indian Labor Law came into existence as the International Labor Organization (ILO), a tripartite UN agency, was formed in 1919. ILO is responsible for establishing the standards, policies, and programs of labor that are aligned with fair working conditions for employees as well as with the international human rights. Experts at Bharati Vidyapeeth New Law College, Pune list some of the important classifications of legislation on the grounds of its purpose:

Industrial Relation Laws

The Trade Union Act, 1926

This act specifies the fundamentals of formation, rights, provisions, and liabilities applicable to every Trade Union (TU). TUs are essential for presenting and streamlining workforce issues to the employer. To avail the provisions of this act, a TU must be legally registered. 

The Industrial Disputes Act, 1947

Before its establishment, industrial disputes were legally governed on the basis of the Trade Disputes Act, 1929. However, the Industrial Disputes Act deals with the cases of closure, strike, lay-off, retrenchment, etc. The act states that initially, a mutual mediation must be offered for any industrial dispute. If reconciliation is unsuccessful, the State government or either of the involved parties can present the dispute to the industrial tribunal. Furthermore, compensation associated with the lay-off, undertaking, or retrenchment is addressed under this act.

Remuneration Laws

Payment of Wages Act, 1936

As the name suggests, this act was implemented observing the injustice of wages experienced by employees. Payment of Wages Act highlights payment responsibility, time of payment, wage slabs, etc. Along with the legal provisions for circumstantial wage deduction, it also includes penalties for employers if they do not follow the act.

Minimum Wages Act, 1948

This act caters to the wages of people employed under the employment avenues, specified under Schedule I of the Act. Some of the major points include overtime wages, government responsible to fix minimum wages, revision of this number, etc.

Social Security Laws

Employee’s Compensation Act, 1923

As per the act, compensations applicable to an employee or his/her dependents due to an accident (or death) caused from a disease contracted at the employment or from outside, but during their employment. The list of people counted under the section of dependents and circumstance-based compensation calculation is defined under this act.  

Employees’ State Insurance Act, 1948

This act lists the benefits applicable to an employee, which include maternity, demise, medical, accidental, and sickness. For instance, funeral/demise benefits are primarily applicable to the eldest member of the family. In case of absence, the person responsible for funeral expenses will be the beneficiary.  

Women Empowerment Laws

Maternity Benefits Act, 1961

Except for the women applicable under the Employees’ State Insurance Act, 1948, this act ensures maternity protection for women working in any company. It also protects the right of a woman to be paid as per the norms during their maternity period and bars organizations from compelling women to work under certain circumstances. This act was established to streamline gender equality and promote women empowerment.   

Social Evil Laws

Child Labour (Prohibition & Regulation) Act, 1986

This act differentiates between adolescent and children, forbidding their engagement in hazardous jobs. In case any company allows adolescents to work, the law also states regulations that determine working hours, safety, health, and the number of holidays an individual can avail. In case the employer doesn’t abide by this act, they are liable to consequent penalties.

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