History of Indian Labour Law

Indian labour law refers to laws regulating labour in India. Traditionally Indian
governments at federal and state level have sought to ensure a high degree of
protection for workers, but in practice, legislative rights only cover a minority of
workers. India is a federal form of government and because labour is a subject in
the concurrent list of the Indian Constitution, labour matters are in the jurisdiction
of both central and state governments. Both central and state governments have
enacted laws on labour relations and employment issues.
Indian labour law is closely connected to the Indian independence movement, and
the campaigns of passive resistance leading up to independence. While India was
under colonial rule by the British Raj, labour rights, trade unions, and freedom of
association were all suppressed. Workers who sought better conditions and trade
unions that campaigned through strike action were frequently and violently
suppressed. After independence was won in 1947, the Constitution of India of 1950
embedded a series of fundamental labour rights in the constitution, particularly the
right to join and take action in a trade union, the principle of equality at work, and
the aspiration of creating a living wage with decent working conditions.

1921 Buckingham and Carnatic Mills Strike

1926 Binny Mills Strike

1928 South Indian Railway Strike

Meerut Conspiracy Case (1929)

1974 railway strike in India

Great Bombay Textile Strike in 1982

Harthal in Kerala 2012

HCL recruitment issue in 2012

Wage regulation
The Payment of Wages Act 1936 requires that employees receive wages, on time,
and without any unauthorized deductions. Section 6 requires that people are paid in
money rather than in kind. The law also provides the tax withholdings the
employer must deduct and pay to the central or state government before
distributing the wages.
The Minimum Wages Act 1948 sets wages for the different economic sectors that it
states it will cover. It leaves a large number of workers unregulated. Central and
state governments have discretion to set wages according to kind of work and
location, and they range between as much as 143 to 1120 per day for work in the
so-called central sphere. State governments have their own minimum wage
schedules.
The Payment of Gratuity Act 1972 applies to establishments with 10 or more
workers. Gratuity is payable to the employee if he or she resigns or retires. The
Indian government mandates that this payment be at the rate of 15 days salary of
the employee for each completed year of service subject to a maximum of
1000000.
The Payment of Bonus Act 1965, which applies only to enterprises with over 20
people, requires bonuses are paid out of profits based on productivity. The
minimum bonus is currently 8.33 per cent of salary.
Working time

Weekly Holidays Act 1942

Beedi and Cigar Workers Act 1967

Health and safety

The Workmen's Compensation Act 1923 requires that compensation is paid if
workers are injured in the course of employment for injuries, or benefits to
dependants. The rates are low.
2

Factories Act 1948, consolidated existing factory safety laws

Pensions and insurance

The Employees' Provident Fund and Miscellaneous Provisions Act 1952 created
the Employees' Provident Fund Organization of India. This functions as a pension
fund for old age security for the organized workforce sector. For those workers, it
creates Provident Fund to which employees and employers contribute equally, and
the minimum contributions are 10-12 per cent of wages. On retirement, employees
may draw their pension.[15]

Indira Gandhi National Old Age Pension Scheme

National Pension Scheme

Public Provident Fund (India)

The Employees' State Insurance provides health and social

security insurance. This was created by the Employees' State
Insurance Act 1948.
The Unorganized Workers' Social Security Act 2008 was passed to extend the
coverage of life and disability benefits, health and maternity benefits, and old age
protection for unorganized workers. "Unorganized" is defined as home-based
workers, self-employed workers or daily-wage workers. The central government
was meant to formulate the welfare system through rules produced by the National
Social Security Board.

Implementation of Labour Laws in the Country

The Planning Commission had set up a Working Group on Labour Laws & Other
Labour Regulations for the Twelfth Five Year Plan (2012-17) under the
Chairpersonship of Secretary, Ministry of Labour & Employment . Since the
Working Group on Labour Laws & Other Labour Regulations had been set up by
the Planning Commission for finalization of the Twelfth Five Year Plan (2012-17),
the report of the Working Group containing the recommendations has been
3

submitted to the Planning Commission. The recommendations of the Working

Group for improving enforcement of labour laws are as under:
Recommendations for Improving Enforcement of Labour Laws
Strengthening of enforcement machinery by way of increasing the manpower,
improving infrastructure, etc. is essential for effective implementation of labour
laws. At present the ratio of enforcement officer to industrial establishment is very
low. Over the years the number of Acts, number of establishments and number of
workers have increased manifold. The Working Group, therefore, suggests a
complete review of the strength of the enforcement machinery. Creation of an All
India Service for labour administration to provide professional experts in the field
of labour administration, autonomous bodies and labour adjudications could help.
This could be accompanied with well laid out institutional mechanisms for up
gradation of skills, induction of greater professionalism, introduction of
performance assessment parameters and well defined incentives and disincentives
for officers dealing with enforcement of labour laws.
The Working Group also felt that proper enforcement of labour laws can be done
through the vigil of trade unions. Collective bargaining process should increasingly
be relied upon for resolution of labour disputes. Holding LokAdalats should also
be encouraged to enable faster disposal of cases. A database should be built on all
aspects relating to industrial relations and the officers of the Labour Departments
should have access to such database through computer connectivity. The flow of
statistics from the States to the Centre should also be streamlined, made more
efficient and faster.
In addition to codification and simplification of Labour Laws it is also suggested
for creating online single window system for making compliance as user friendly,
simple and for bringing transparency. Employers can seek the registration, license
etc. online and can also file returns etc. online.

Amendments In The Workmens Compensation

Act
Labour Law India : Amendments in the Workmen's Compensation Act in India
Workmen's compensation Act has been amended on 9th January 2010.
Given below are the synopses of the changes.
(1) THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now
renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009
and wherever "workman" or "workmen" is mentioned in the entire Act the same
needs to be read as "Employee"
(2) The compensation payable on death from the injury, is (i) minimum of
Rs.80000 is increased to Rs.120000 or (ii) 50% of the monthly wages of deceased
multiplied by the relevant factor.
(3) The compensation payable on Permanent Total Disablement from the injury, is
(i) minimum of Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly
wages of deceased multiplied by the relevant factor.
5

(4) Definition of wages remains unaltered.

(5) For the purpose of claims settlement actual monthly wages have to be
calculated without ceiling of Rs.4000/- which will lead to multifold increase in
claim outgo. The maximum amount of claim compensation payable was Rs. 4.56
lakh in the case of death and Rs. 5.48 lakh in the case of permanent total
disablement. *(Refer to table and calculation below).
With the ceiling of Rs.4000/- being removed, the claims outgo will increase.
(6) Definition of workmen replaced by "Definition of Employee"- also now
includes CLERICAL employees.
* Maximum claim outgo in case of death when ceiling of Rs.4000 was there is
calculated as below:
50% of 4000* 228.54 (if age of employee was 16 years from table below)
= Rs.4.56 lakhs
Revised monthly wage ceiling limit of 50% of Rs.4000 increased to Rs.8000Employees Compensation Act for maximum compensation calculation.
Now, a new monthly wage-ceiling limit of Rs. 8000 is introduced for the purpose
of calculation of 50% of it during computation of Maximum compensation under
the Act. Hence, the maximum compensation can go UPTO 50% of 8000 which
comes to Rs. 4000/- that shall be multiplied by Age factor. Thus, effectively it was
erstwhile 50% of Rs.4000 and now it is 50% of Rs.8000/-. This amendment is
notified vide Central Government Notification No. S.O. 1258(E) vide Ministry of
Labour & Employment dated 31st May 2010.

Maternity and Work

Maternity Leave
Female employees are entitled to a maximum of 12 weeks (84 days) maternity
leave. Six weeks leave has to be taken after the actual date of delivery. In case of
miscarriage or medical termination of pregnancy, an employee is entitled to six
weeks of paid maternity leave. Employees are also entitled to one additional month
of paid leave in case of complications arising related to pregnancy, delivery,
6

premature birth, miscarriage, medical termination or a tubectomy operation (two

weeks in this case) (Section 6-10 of the Maternity Benefits Act, 1961). Female
civil servants are entitled to maternity leave for a period of 180 days for their first
two live born children. (Central Civil Service (Leave) Rules, 1972)

Income
The maternity leave is awarded with full pay and the maternity benefit is awarded
at the rate of the average daily wage for the period of an employee's actual absence
from work. A woman worker is entitled to maternity benefit only if she has worked
at least 80 days in an establishment in the 12 months prior to her expected date of
delivery (Section 5 of the Maternity Benefits Act, 1961). Apart from 12 weeks of
salary, a woman employee is entitled to a medical bonus of 3,500 Indian rupees.

Free Medical Care

A pregnant women worker is entitled to a maternity benefit (in the form of medical
bonus) of one thousand rupees if no prenatal confinement and post-natal care is
provided by the employer free of charge. This medical bonus can be increased to a
maximum limit of twenty thousand rupees (Section 8 of the Maternity Benefits
Act, 1961).

Regulations on Maternity and Work

Maternity Benefit Act,1961
Colin Gonsalves, a senior advocate and founder of the Human Rights Law
Network, said that the recent proposals to amend the Factories Act,
1948 (Factories Act) and the Minimum Wages Act, 1948 (Minimum
Wages Act) indicate the anti-labour direction in which this government is
going.
The failure of the Factories Act and the Minimum Wages Act
He used three cases to illustrate how labour statutes were not being
implemented. First, the case relating to occupational safety at thermal power
plants before the Supreme Court illustrated the failure of the Factories Act,
1948 (a very old statute) and the Workmens Compensation Act, 1923. The
7

workers, he said, were sufferings in the most terrible conditions from

cancer, asbestosis, and other crippling diseases and there was no medical
checkup or compensation. The case relating to the Commonwealth Games
before the Delhi High Court illustrated the existence of bonded and slave
labour and the failure of the minimum wages law. Wages were not paid,
helmets were not given, protective equipment was not there, the helpline
or the lifeline which protects you when you fall was not there, they were
living in places where there were bunks without mattresses, without fans,
toilets without doors, toilets without water. In another case pending
before the Supreme Court, the Directorate General of Factory Advice,
Service, and Labour Institutes did not have a response when the Court asked
what was being done about the plight of the lakhs of workers working in the
construction, stone crushing, and marble industries who suffer from
the debilitating disease of silicosis for which there is no remedy. Lakhs of
workers dying, dying because of that ingestion of that fine silicon dust
which goes into your lungsno action at all.
Mr. Gonsalves said that it was elementary to any democracy that minimum
wages should be paid and that when you work in a factory, you must work in
a secure environment. He argued that labour reforms should address the
issue of why these statutes are not being implemented, and the amendments
should cover the loopholes in the law and make them foolproof. That
however, was not the thrust of the proposals contained in the notifications
of June 5 and June 17.

Proposed amendments to the Factories Act

He pointed out that there was a proposal to lengthen work hours and
overtime, which went against the global trend. In the era of globalisation
where the hours of work shrink, you come from fourteen hours to twelve
hours; to ten hours to eight hours all across the world it will be eight
hours, as a norm. You will do overtime as an exception to the rule. The
amendment suggests a spread over of twelve hours. Can you imagine? He
said that it was inhuman for a person to be locked into employment for
twelve hours even if he does not work for that long. Further, the limit on
overtime, which is now seventy-five hours per quarter, is now proposed to
be raised to one hundred hours per quarter. So the amendment is not only to
8

make you work longer hours in the day, but to make you work longer hours
overtime as of right of the employer! The employer can say work
overtime, and you cant refuse to work!
Mr. Gonsalves also expressed his disappointment on the issue of women
working after seven. We thought that the law would be amended and make
it progressive and say all right women can work. But instead, he is
disheartened to see the amendment says, that if the employer has this
facility, and this facility, and this facility, and this facilitythen, the
government may consider issuing a notification allowing women to work, so
instead of saying women can work, and the employer must do this, this, this,
this, otherwise hell be punished He said that this meant that the
government accepts that women should generally not work.
He also noted that the government has proposed a climb down from the
strict liability standard in the Bhopal case, regarding hazardous substances
in factories. The Supreme Court had placed a strict liability upon the
employers, but now the amendment suggests that the employer will try as
far as practicable, thats the term used, as far as practicable to ensure that
things are safe in this factory.
He also laughed at the proposed amendments on child labour. If children
are found working in your factory, the parents are going to be punished! The
amendment says theyll catch the parents and punish the parents!

Proposed Amendments to the Minimum Wages Act

The Minimum Wages Act does not specify a minimum wage for everyone.
Instead, it notified wages in an industry-wise schedule. Most industries
therefore, are not covered by the Act.
Mr. Gonsalves said that the governments proposal for a national minimum
wage was a trick. Firstly, the national minimum wage will be the lowest
wage of the unskilled worker and will be specified at an appalling
starvation-level. Secondly, a national minimum wage would lead to a
move to reduce the minimum wage even in states such as Kerala where the
minimum wage is higher. He said that even though the proposal does not
directly state that the wages in the schedules will be reduced to the national
minimum wage, the implication is exactly that. The gains of the workers in
getting minimum wages at particular levels in particular states must not be
9

reduced, but that seems to be the tendency. He suggested that there be a

residual minimum wage instead. A residual clause will say that any worker
working in an industry not specified in the schedule will have a minimum
wage. Once you do that, then everybody gets covered, those in the
schedule, those not in the schedule, everyone will have a minimum wage.
The actual shortcoming of Indias minimum wages law is that millions of
workers who are not in traditional factories including domestic workers, are
not included under the law. Further, the law contains no deterrent. No
person, no employer has ever gone to jail for failure to pay minimum wages
in this country.

Broaden the system of inspection

Mr. Gonsalves said that the implementation of the Factories Act and the
Minimum Wages Act through the system of inspectors was ineffective.
Now the inspector system is basically this, and any worker will tell you,
inspector comes to the factory, the factory owner warmly greets him, takes
him to his cabin, gives him a cup of tea and biscuits and gives him an
envelope, which he takes back home. Right? And thats the end of your
inspection. And if you ask the question as to why is that the Factories Act
has remained unimplemented for decades, or the Minimum Wages Act
unimplemented for decades, the answer is the system of corruption.
Therefore these inspectors have failed.
He suggested that as the system of inspectors, government inspectors, has
failed. And you need to replace it by a wider, civil society concept. A trade
unionist from a recognized union or even a senior teacher could be
automatically designated as an inspector. You need to enlarge the concept
of monitoring and inspection and get out of the system where government
officials make huge amounts of money by carrying out the so-called routine
and farcical inspections in the factories.

Agenda for reform

Mr. Gonsalves then outlined the agenda for the reform of Indias labour law.
Firstly, he said that trade union elections should be held using secret ballot.
Once every five years, all the workers of the establishment come and elect
their union as their recognized union for a period of five years. The method
used, like in all other sections of society, should be that of the secret ballot.
10

 Secondly, there should be direct access to the courts for the adjudication of
labour disputes. Every section of society goes directly to court, but not the
working class. The working class will be told to go and take permission and
to take permission you spend five years in the Labour Commissioners
office.

Thirdly, there should be an amendment to reverse the decision in Uma

Devis Case, a horrible judgment by a five-judge, constitution bench of the
Supreme Court, which sanctioned slave labour [and] bonded labour in the public
sector. A simple amendment in the law can state that if a worker works as a
casual ad hoc worker on a perennial basis, in a government establishment public
sector undertaking etcetera, that workman will be regularized. Two-line
amendment.
Fourthly, there should be an amendment to reverse the Supreme Courts
awful, anti-labour judgment in the Steel Authority of India Limited Case,
where the Supreme Court said that where the contract labour system is
abolished, the workers cannot be regularized. Mr. Gonsalves suggested that
there should be a simple amendment, which states, when the contract
labour system is adjudicated upon and abolished contract workers will be
recognized.
Fifthly, child labour has to be abolished up to the age of eighteen. At the
moment, child labour is only abolished up to the age of fourteen in specified
hazardous industries.

Compensation
Overtime Compensation
In accordance with the section 59 of Factories Act 1948, if an employee works
beyond the stipulated working hours, i.e., 9 hours a day and 48 hours a week,
he/she is entitled to an overtime pay that is twice the regular rate of his ordinary
pay (200% of the regular wage rate). The law however does not limit the overtime
hours in a week. An employee can't be required to work overtime on short notice
without prior intimation. Period of work, fixed in accordance with the provisions
of Act, should be properly notified and displayed in the factory. Any proposed
11

change should be notified to the Inspector, before the change is made. (Section 6163 of Factories Act)

Night Work Compensation

There is no special pay premium for employees working over night.

Compensatory Holidays / Rest Days

If workers have lost their weekly rest days due to the exemption granted to an
establishment under section 52 of the Factories Act, these workers must be
provided with compensatory rest days within 3 months. (Section 53 of Factories
Act)

Work and Wages

Minimum Wage
Minimum wage rates in India are fixed under the Minimum Wages Act, 1948.
Since labour is a concurrent subject under the Indian Constitution, minimum wage
rates are determined both by the center and the Provinces. Minimum wage rates in
India are declared at the national, state, sectoral and skill/occupational levels
(Section 27 & 28 of Minimum Wages Act, 1948).
Current minimum wage rates can be found in the Minimum Wage section.

Regular Pay
Workers are entitled to their pay on a regular and timely basis. Wage period may be
fixed on hourly, daily, weekly or monthly basis. Wages must be paid on a working
day. Wage period can't exceed one month. Wages must be paid before the expiry of
the 7th day after the last day of the wage period in establishments where less than
1000 workers are employed. In other establishment, i.e., those hiring more than
1,000 workers, wages must be paid before expiry of 10th day after the last day of
the wage period (Section 3-6 of Minimum Wages Act, 1948).
Bonus Payment
12

Bonus Pay in India: Every employee not drawing salary/wages beyond Rs. 10,000
per month who has worked for not less than 30 days in an accounting year, shall be
eligible for bonus for minimum of 8.33% of the salary/wages
Bonus is a reward that is paid to an employee for his good work towards the
organization. The basic objective to give bonus is to share the profit earned by the
organization amongst the employees and staff members. In India there is a
principle law relating to this procedure of payment of bonus to the employees and
that principle law is named as Payment of Bonus Act, 1965.

The Payment of Bonus Act applies to every factory and establishment employing
not less than 20 persons on any day during the accounting year. The establishments
covered under the Act shall continue to pay bonus even if the number of employees
fall below 20 subsequently.
Eligibility:
Every employee not drawing salary/wages beyond Rs. 10,000 per month who has
worked for not less than 30 days in an accounting year, shall be eligible for bonus
for minimum of 8.33% of the salary/wages even if there is loss in the establishment
whereas a maximum of 20% of the employees salary/wages is payable as bonus in
an accounting year. However, in case of the employees whose salary/wages range
between Rs. 3500 to Rs. 10,000 per month for the purpose of payment of bonus,
their salaries/wages would be deemed to be Rs. 3500.
There are provisions and benefits for newly formed establishments as well. As per
these provisions/benefits, the first five accounting years following the accounting
year in which the employer sells goods/renders services, bonus is payable only in
respect of the accounting year, in which profits are made but the provisions of set
on and set off would not apply.
Applicability:
The Act is applicable in whole of India where 10 or more workers are working, or
were working on any day of the preceding 12 months with the aid of power. Or
13

whereon 20 or more workers are working or were working on any day of preceding
12 months without the aid of power.
Calculation of bonus:
Salary/wages and dearness allowance (DA) are included while calculating bonus.
However, other allowances such as over-time, house rent, incentive or commission
are not included.

Forfeiture of Bonus:
An employee who is dismissed from service on the grounds of fraud, riotous or
violent behavior at the premises of the establishment or for the theft,
misappropriation or sabotage of any of the property of the establishment as
mentioned in the Act. This shall not only disqualify him from receiving the bonus
for the accounting year in which he was dismissed but also for the past years which
were
remained
unpaid
to
him.
Time limit for payment of bonus:
It is mentioned in the Act that all amounts payable to an employee by the way of
bonus are to be paid in cash. It is also mentioned that within 8 months from the
close of the accounting year the bonus should be paid to the employees. In
exception to where there is dispute regarding payment of bonus pending before an
authority (Under Industrial Disputes Act) within 1 month from the date on which
the award becomes enforceable or settlement comes into operation, in respect of
such dispute.
There is a proposed amendment in the Payment of Bonus Act in the year 2010, but
which is still under proposal and has not come into force. The amendment bill is
known as The Payment of Bonus (Amendment) Bill, 2010 and will come into
force on a date when Central Government may notify it by official gazette.
Provisions for the payment of Gratuity to the employees as prescribed under
the Act
14

Gratuity Benefits in India: Payment of gratuity Act 1972 extends to the whole of
India and is applicable to all factories, mines, oilfields, plantations, ports, railway
companies etc.

Payment of Gratuity to employees a statutory duty on an employer

The Payment of Gratuity Act was enacted in 1972 and applies to every shop or
establishment within the meaning of law for the time being in force in a State in
which 10 or more persons are employed or were employed on any day of the
preceding 12 months. This Act provides a social security cause with it and has been
enacted from the word gratuitous. It is a form of gratitude by the employer
towards the employee who has served his organization for 5 years or more.[1]
Gratuity shall be payable to an employee on termination of his employment after
he has rendered continuous service for not less than five years (a) On his
superannuation, or (b) On his retirement, resignation, or (c) On his death or
disablement due to accident or disease. An employer will be liable to pay gratuity
to the legal heirs/nominees of the deceased employee even if the employee had not
completed five years of service. For every completed year of service or part thereof
in excess of six months the employer shall pay the gratuity.
Continuous Service Means:
Section 2A of the Act provides the definition of continuous service which says
that service been uninterrupted for that period, interruption which may on account
of sickness, accident, leave, absence from duty without leave not being absence in
respect of which an order treating the absence as break in service has been passed.
For the period of one year employee is deemed to have rendered continuous
service for 240 days.
Forfeiture of Gratuity:
The gratuity payable to an employee shall be wholly forfeited for the following
reason mentioned:
i.

If the service of such employee has been terminated for his riotous or
disorderly conduct or any other act of violence on his part; or

15

ii.

If the service of such employee is terminated for any act which constitutes
an offence involving moral turpitude provided that such offence is
committed by him in the course of his employment. In order to forfeit
gratuity of an employee, there must be termination order containing charges
as established to the effect that the employee was guilty of any of the
aforesaid misconducts. In one case, it has been held that in the absence of
termination order containing any of the above allegations, the gratuity of an
employee cannot be forfeited.

Duty of employer to pay gratuity and mode for payment:

Section 4 of the Act mentions the obligation on an employer of an establishment to
consider the case of each employee in the matter of payment of gratuity to him.
The employer shall arrange to pay the amount of gratuity within 30 days from the
date it becomes payable to the person to whom the gratuity is payable. If the
amount of gratuity payable under the section is not paid by the employer within the
period specified, from the date on which the gratuity becomes payable he will have
to pay simple interest on it at the rate not exceeding the rate notified by the Central
Government from time to time.
The mode for the payment of gratuity is prescribed under section 9 of the Payment
of Gratuity Act, 1972. The said section contemplates that gratuity payable under
the Act should be paid in cash, or if so desired by the payee, by demand draft or
bank cheque to the eligible employee, nominee or legal heir, as the case may be.
Penalties:
Imprisonment for 6 months or fine upto Rs. 10,000 fir avoiding to make
payment by making false statement or representation
Imprisonment not less than 3 months and upto one year with fine on default
in complying with the provisions of Act or Rules.

16

Current Labour Laws Amendments

Union Labour & Employment Minister Shri Mallikarjun Kharge, who chaired the
Parliamentary Consultative Committee meeting on 22.12.2012, listed the major
Labour Laws Amendments in the last few years
1. Amendment made in Payment of Wages Act, 1936 enhancing ceiling of
workers from Rs.1,600/- to Rs.6,500/- per month and subsequently to
Rs.10,000/- per month
2. Amendment made Payment of Bonus Act, 1965, wherein the calculation
ceiling and eligibility limit under the Act has been enhanced from Rs.2,500/to Rs.3,500/- and from Rs.3,500/- to Rs.10,000/- per month respectively.
3. he Apprentices Act, 1961 has been amended to provide reservation for other
backward classes. The Maternity Benefit Act, 1961 has been amended to
enhance the medical bonus from Rs.250/-to Rs.1000/- and also empowering
the Central Government to further increase it to maximum of Rs.20,000/through Gazette Notification.
4. The Workmens Compensation Act has been amended to make it gender
neutral and it is now called the Employees Compensation Act, 1923.
Besides this, the Compensation in case of death, disablement and funeral
expense paid under the Act have also been enhanced. The Plantation Labour
17

Act, 1951 has been amended to provide safety and occupational health care
to plantation workers.
5. Employees State Insurance Act, 1948 has been amended to improve the
quality of delivery of benefits under the scheme and also to enable ESI
infrastructure to be used to provide health care to workers of the
unorganized sector.
6. Industrial Disputes Act, 1947 has been amended to amplify the term
appropriate Government defined under section 2(a) of the Act. The wage
ceiling for coverage under the Act has been enhanced from Rs.1600/- to
Rs.10,000/- per month to cover workmen working in supervising capacity.
The amended provisions also provide direct access for the workman to the
Labour Court or Tribunal.

Other major Labour Acts which are under various stages of consideration for
amendments are
(i) The Building and Other Construction Workers (Regulation of Employment &
Conditions of Services) Act, 1996
(ii) The Factories Act 1948,
(iii) The Minimum wages Act 1948,
(iv) The Employees Provident Fund and Miscellaneous Provisions Act 1952,
(v) The Apprentice Act 1961
(vi) The Contract Labour (Regulation and Abolition) Act 1970
(vii) The Employment Exchanges (Compulsory Notification of Vacancies) Act,
1959.
The gist of meeting as reported in Press Information Bureau is as follows.
Ministry of Labour & Employment 22-December, 2012

18

Parliamentary Consultative Committee

meeting
Comprehensive Amendments in
Labour
Laws
Moots
Implementation and speedy Grievance Redressal

on
Effective

Members participating in the meeting of Parliamentary Consultative Committee on

Comprehensive Amendment in Labour Laws have urged the government for the
effective and speedy implementation of labour laws along with the timely redressal
of Grievances. In meeting held yesterday the members raised the issue of Child
labour Laws along with the Contract Labour Law reforms. Union Labour
& Employment Minister Shri Mallikarjun Kharge, who chaired the meeting
assured the members for due consideration on the issue raised.
Welcoming the members the minister the minister said Labour being a subject in
the Concurrent List where both Central and State Governments are competent to
enact legislation. Ministry of Labour & Employment is presently administering 44
Labour Laws catering to diverse subjects, namely, occupational health & safety,
employment services, training of apprentices, skill development, minimum wages,
social security, industrial dispute, labour welfare, child labour etc. He said the
Ministry has been reviewing various labour laws from time to time and taking
action towards amendment of the labour laws keeping into consideration the
changes in the socio-economic scenario and the requirements of the workers in
organized as well as in the unorganized sector.
Shri Mallikarjuna Kharge informed the members that last few
years, amendments have been carried out in Payment of Wages Act, 1936
enhancing ceiling of workers from Rs.1,600/- to Rs.6,500/- per month and
subsequently to Rs.10,000/- per month, Payment of Bonus Act, 1965, wherein
the calculation ceiling and eligibility limit under the Act has been enhanced from
Rs.2,500/- to Rs.3,500/- and from Rs.3,500/- to Rs.10,000/- per month
respectively.
The Apprentices Act, 1961 has been amended to provide reservation for other
backward classes. The Maternity Benefit Act, 1961 has been amended to enhance
the medical bonus from Rs.250/-to Rs.1000/- and also empowering the Central
Government to further increase it to maximum of Rs.20,000/- through
Gazette Notification.
The Workmens Compensation Act has been amended to make it gender neutral
and it is now called the Employees Compensation Act, 1923. Besides this, the
19

Compensation in case of death, disablement and funeral expense paid under the
Act have also been enhanced. The Plantation Labour Act, 1951 has been amended
to provide safety and occupational health care to plantation workers.
The minister said his Ministry has amended the Employees State Insurance Act,
1948 to improve the quality of delivery of benefits under the scheme and also to
enable ESI infrastructure to be used to provide health care to workers of the
unorganized sector. The Payment of Gratuity Act, 1972 has been amended to
enhance ceiling on gratuity from Rs.3.5 lakh to Rs.10 lakh and to cover the
teachers in educational institutions.
Also, the Industrial Disputes Act, 1947 has been amended to amplify the term
appropriate Government defined under section 2(a) of the Act. The wage ceiling
for coverage under the Act has been enhanced from Rs.1600/- to Rs.10,000/- per
month to cover workmen working in supervising capacity. The amended provisions
also provide direct access for the workman to the Labour Court or Tribunal.

Shri Kharge also informed that the Government has also introduced Bills in
Parliament for Amendment in the following Labour Acts: (i) The Mines Act, 1952.
(ii) The Labour Laws (Exemption from Furnishing Returns and Maintaining
Registers by Certain Establishments) Act, 1988.
(iii) The Inter-State Migrant Workmen (Regulations of Employment and
Conditions of Service) Act, 1979.
(iv) The Child Labour (Prohibition & Regulation) Act, 1986.
It was also highlighted that other major Labour Acts which are under various
stages of consideration for amendments are: (i) The Building and Other Construction Workers (Regulation of Employment
Conditions of Services) Act, 1996
(ii) The Factories Act 1948,
(iii) The Minimum wages Act 1948,
(iv) The Employees Provident Fund and Miscellaneous Provisions Act 1952,
(v) The Apprentice Act 1961
(vi) The Contract Labour (Regulation and Abolition) Act 1970

20

(vii) The Employment Exchanges (Compulsory Notification of Vacancies) Act,

1959.

21