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DR. SHAKUNTALA MISRA NATIONAL REHABILITATION

UNIVERSITY
Lucknow

Faculty of Law

PROJECT ON

‘AN OVERVIEW OF LABOR LAWS IN INDIA’

For

COURSE ON LABOR & INDUSTRIAL LAWS

CLASS: B.Com., LL.B (Hons.) 9th Semester

Submitted by
SHUBHAM PAL
B Com LL.B/2016-17/06

Roll NO-164140064

Under the Supervision of

Ms. SAMBHAVI MAA’M

Faculty of Law
Dr. Shakuntala Misra National Rehabilitation University
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ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Ms. SAMBHAVI MAA’M
who gave me the golden opportunity to do this wonderful topic “AN OVERVIEW OF LABOR
LAWS IN INDIA” which also helped me in doing a lot of Research and I came to know about
so m any new things I am really thankful to them.

SHUBHAM PAL
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TABLE OF CONTENT

1. Labor laws in India…………..…………………………………………………….04

2. Classification of Labor laws………………………………………………….....05 - 06

3. Laws dealing with Industrial relation………………………………………………07

4. Laws dealing with remuneration payment, deduction and related issues…………..08

5. Laws dealing with the social security of the employees…………………..…….….09

6. Laws dealing with nature and conditions of service and employment.……….…....10

7. Laws dealing with issues of gender equality & women empowerment……………11

8. Laws dealing with employment and Training of the employees…..……………….12

9. Conclusion…………………………………………………………………...……..13

10. Bibliography………………………………………………………………………..14
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An Overview of Labor Laws

in India

Labor Laws in India

Labor law is also commonly known as ‘the law of employment’. The growth and
development of Labor laws can be traced back to the establishment of the
International Labor Organization, the only tripartite U.N. agency, in 1919. It
brings together governments, employers and workers of 187 member States to
set Labor standards, develop policies and devise program’s promoting decent
work for all women and men.[1] It is devoted to promoting social justice and
internationally recognized human and Labor rights, pursuing its founding
mission that social justice is essential to universal and lasting peace.[2] India
has been the permanent member of the governing body of ILO since 1922. This
has been a major reason behind the progressive Labor legislation in India.

Moreover, Labor policy in India has been evolving in response to specific needs
of the situation to suit requirements of planned economic development and
social justice and has two fold objectives, namely maintaining industrial peace
and promoting the welfare of Labor.[3] Labor law cover three aspects.

 Industrial Relations
 Workplace Health and safety
 Employment standards

Legislating Power
Both the Central government and the State government are vested with the
power to legislate on the matters concerning Labor laws. The Central
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government has the power to legislate with respect to the entries mentioned in
the Union List of Schedule VII of the Constitution.

 Regulation of Labor and safety in mines and oilfields[4],

 Industrial disputes concerning Union employees[5], and
 Union agencies and institutions for professional, vocational or technical
training.[6]

On the other hand, both the Central Government and State Governments have
the power to legislate with respect to the entries mentioned in the Concurrent
List of Schedule VII of the Constitution.

 Trade unions, industrial and Labor disputes[7],

 Social security and social insurance, employment and
unemployment[8], and
 Welfare of Labor including conditions of work, provident funds,
employers’ liability, workmen’s compensation, invalidity and old age
pensions and maternity benefits[9].

For instance, the central legislation includes the Trade Unions Act, 1926, the
Factories Act, 1948, the Payment of Wages Act, 1936, etc. and the State
legislation includes the Shop & Establishment Acts (of respective States), Labor
Welfare Fund Act (of respective States), etc.

Classification of Labor Laws

There are more than a hundred legislations dealing with Labor law in India.
Therefore, the classification of Labor laws becomes important for the purpose of
understanding them. One way of classifying them is on the basis of enactment
and enforcement. The other way of classifying is on the basis of the purpose
and the objective of the legislation.

The former type of classification is as listed below.

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 The Labor laws enacted by the Central Government, the responsibility

of enforcement of which lies solely on the Central Government.
 The laws enacted by the Central Government, the responsibility of
enforcement of which lies on both the Central Government and the
State Government.
 The laws enacted by the State Government and enforced by them only.
 The laws enacted and enforced by various State Governments which
apply to respective states.[10]

The other type of classification can be done by dividing the legislation under
broad categories.

 Laws dealing with industrial relations.

 Laws dealing with remuneration- payment, deduction and related
issues.
 Laws dealing with the social security of the employees.
 Laws dealing with nature and conditions of service and employment
such as the issue of working hours, weekly holidays, the interval
between working hours, etc.
 Laws dealing with the issues of gender equality and women
empowerment.
 Laws dealing with social evils and prohibiting them such as bonded
Labor, child Labor, etc.
 Laws dealing with employment and training of the employees.

For the purpose of having an overview of the Labor laws, we shall be dealing
with the latter type of classification.
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Laws dealing with Industrial relations

The Industrial Disputes Act, 1947

This an important legislation dealing with the issues of industrial dispute,

closure, lock-out, strike, retrenchment, lay-off, etc. Prior to this Act, the Trade
Disputes Act, 1929 solved the industrial disputes. However, there were some
inherent defects in the Act which was sought to be removed by enacting a fresh
legislation i.e. the Industrial Disputes Act, 1947. The Act provides for an
elaborate mechanism to get the industrial disputes resolved. There are various
authorities under the Act for the same which includes Conciliation officers,
Boards of Conciliation, Labor Courts, Tribunals, and National Tribunals. The
main features of the Act have been discussed in the subsequent points.

 The industrial dispute has to be referred for conciliation at the first

instance.
 The dispute may be referred to the industrial tribunal either by the
parties or by the State government. The parties refer the dispute by an
agreement with respect to the same.
 Strike and lockouts are regulated by the Act. The Act lays down certain
circumstances in which they are prohibited.
 The Act also provides for compensation to the workmen in case of lay-
off or retrenchment or transfer/closure of an undertaking.

The Trade Unions Act, 1926

Trade Unions are vital to the smooth functioning of the industry. The Trade
Unions collectively assert the demands of the workmen and make it easy for the
workmen to negotiate with the employer. This is commonly called ‘collective
bargaining’. The Trade Unions Act, 1926 provides for the establishment of the
Trade Unions and lays down provisions with respect to the registration of such
Trade Unions and their rights and liabilities. The Act places no restriction on the
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objects which the Trade Unions can take up. Trade Unions which do not get
registered are not governed by the provisions of the Act.

Laws dealing with remuneration- payment, deduction and

related issues

Payment of Wages Act, 1936

This Act came against the backdrop of the great injustice that was being done
to the employees with respect to the payment of wages. There were many
cases of abuse such as the wages were denied or delayed, arbitrary deductions
were made, heavy fines were imposed and more often than not payment was
done in kind rather than in cash. Thus, the Act was enacted to regulate the
payment of wages by certain regulations such as fixing responsibility for such
payment, fixing wage-period, and time of payment of wages, etc. It has
provision for authorized deductions from the wages and levying of fines under
certain circumstances. There are penalties for the employer in case of non-
compliance of the provisions of the Act.

Minimum Wages Act, 1948

The objective of this Act is to provide minimum wages to the workers employed
in the employments mentioned in the Schedule I of the Act such as employment
in any rice mill, flour mill or dal mill or employment in any tobacco manufactory,
etc. The appropriate government is empowered under the Act to fix minimum
wages and revise them regularly. It also lays down provision for overtime
wages. There are penalties under this Act too for non-compliance of the
provisions by the employer.
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Laws dealing with the social security of the

employees

Employee’s Compensation Act, 1923

The Act provides for the compensation to workmen or their dependents in case
of accidents arising out of or in the course of employment. Such accidents may
either result in death or disablement (permanent/temporary) of the workmen. It
also includes compensation for occupational diseases i.e. the diseases
contracted from the employment. The Act lays down a detailed list of the
persons falling under the category of ‘dependents’ and the method to calculate
the amount of compensation in different circumstances. Thus, the Act is a
comprehensive legislation dealing with all the facets of compensation and the
related issues.

Employees’ State Insurance Act, 1948

The Act lays down provisions for benefits to employees such as sickness benefit,
maternity benefit, disablement benefit, medical benefit and funeral benefit. Out
of these, medical benefit is extended to the family members of the employee
too and the funeral benefit is paid to the eldest surviving member of the family
or in his absence, to the person who actually incurs the expenditure on the
funeral. It is to be noted that all the benefits under this Act are paid in cash.
The Act also provides for the establishment of Corporation, Committee, and
Council etc. to implement the provisions of the Act effectively.

Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, Labor

Welfare Fund Act (of respective States), Payment of Gratuity Act, 1972 are
some other laws which fall under this category.
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Laws dealing with nature and conditions of

service and employment

Factories Act, 1948

The Act regulates the working conditions of the workers employed in factories.
It lays down provisions to ensure adequate safety measures are implemented in
the factories for the health and welfare of the workers. The Act outlines the
general duties of the occupier for the same and the duties of the manufacturers,
etc. who import or supply any article for use in a factory. Furthermore, there is
a separate chapter in the Act dealing with hazardous processes in factories.
There are separate provisions dealing with working hours of adults, annual
leave with wages, etc. It regulates the employment of women and children and
prohibits the employment of children below fourteen years of age.

The Industrial Employment (Standing Orders) Act, 1946

This is another important legislation which was enacted to resolve the friction
between the employers and the workmen. This Act requires the employer to
formally define the conditions of employment under him. The Act contains a
schedule which contains the list of the matters to be provided in standing
orders. The employer is under an obligation to make the standing orders known
to the workmen. Further, the Act also regulates the duration and modification of
such orders.

Shops and Commercial Establishments Act (of respective States), Contract

Labor (Regulation and Abolition) Act, 1970, The Plantation Labor Act, 1951, The
Mines Act, 1952 are other laws dealing with the nature and conditions of work.
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Laws dealing with the issues of gender equality

and women empowerment

Equal Remuneration Act, 1976

Equal pay for equal work has constitutional recognition as contained in the
Fundamental Rights[11] and the Directive Principles of State Policy.[12] The Act
provides for the payment of equal remuneration to both men and women for
performing same work or work of similar nature, failing which the employer is
penalized. Thus, it prevents discrimination against women in the matters of
payment of remuneration.

Maternity Benefits Act, 1961

Prior to the enactment of this Act, there were different State Acts and three
central Acts dealing with the provisions of maternity benefit. The Act was
enacted to reduce the disparities in different laws and provide for maternity
protection to the women employed in all establishments except those to which
Employees’ State Insurance Act, 1948 apply. The Act prohibits the employer
from employing women during certain periods and the right of such women to
be paid the maternity benefit.

Laws dealing with the prohibition of social evils

Child Labor (Prohibition & Regulation) Act, 1986

The Act is in consonance with various articles of the Constitution.[13] It

distinguishes between ‘adolescent’ and ‘children’ and prohibits the engagement
of children in all occupations and the engagement of adolescents in hazardous
occupations. Further, the Act also provides for the regulation of conditions of
work of adolescents in such employment where they are permitted to work.
These regulations are with respect to the working hours, holidays, health and
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safety. Moreover, the Act also lays down penalties for not complying with the
provisions of the Act.

Sexual Harassment at the Workplace (Prevention,

Prohibition and Redressal) Act, 2013

This is one of the most recent legislation and was enacted to incorporate the
guidelines laid down by the Supreme Court.[14] It provides for protection of
women against sexual harassment at workplace. There are provisions in the Act
dealing with the prevention and redressal of such complaints. This Act is in
consonance with the spirit of Article 21 of the Constitution which includes the
right of a woman to dignity, life and liberty.

Bonded Labor System (Abolition), Act, 1976, the Beedi and Cigar Workers
(Conditions of Employment) Act, 1966 are the other Acts which fall under this
category.

Laws dealing with employment and training of the employees

Apprentices Act, 1961

The wave of Industrial revolution generated the need of trained employees and
thus, the need for training apprentices. The Act is a comprehensive legislation
dealing with the qualification of being engaged as an apprentice, obligations of
apprentices, their payment, their working conditions and working hours,
employer’s liability, etc.
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Conclusion

There are various Labor laws which deal with different Labor and industrial
issues. The Acts have been enacted with the objective of social and economic
justice. They also embody the constitutional spirit contained in various Articles.

 The Articles contained in Part III of the Constitution such as Article 16,
19, 23 and 24
 The Articles contained in Part IV of the Constitution such as Article 39,
41, 42, 43, 43A and 54

The provisions laid down in various conventions and treaties which India
has ratified have also been incorporated in these Acts time and again.

However, they fail to achieve the objectives completely because of certain

reasons.

 The penalties given under the various Acts are inadequate so as to

create a deterrent in the mind of an offender.
 There are so many legislations that the workmen or the employees are
more often than not unaware of their rights under these laws.
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BIBLIOGRAPHY

1. https://www.britannica.com/topic/labour-law/Trade-unions-and-industrial-relations

2. https://blog.ipleaders.in/labour-laws-in-india/

3. https://www.mondaq.com/india/employee-rights-labour-relations/631074/a-brief-guide-to-
labour-and-industrial-laws-of-india