Labour Laws Final

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The Contract Labour Act, 1970

This act applies all over India to every establishment and contractors who employ
on any day 20 or more persons during the preceding 12 months as contract
labour.
The act does not cover persons who are employed:

•Mainly in managerial and administrative capacities;

• As supervisors with salaries and wages exceeding Rs. 500 pm; and / or

• Those workers who are given materials or articles for processing or


manufacturing in their own homes.
The Equal Remuneration Act, 1976

• This act provides for the payment of equal remuneration to men and
women for same work or work of similar nature.

• It prevents discrimination on grounds of sex, against women in the matter


of employment

• No discrimination to be made while recruiting men and women.


The Employees’ State Insurance Act, 1948

Under the act, workers who draw remuneration up to Rs. 6,500 pm are
eligible.

 Entitled to 5 types of benefits: sickness, maternity, disablement,


dependants funeral and medication.

 Contributions are to be made by both the employer and employee.

 Medical care expenditure to be shared between the state government and


the employer.
The Employment Exchanges (Compulsory notification of vacancies)
Act, 1959

• It facilitates channelizing of labour into employment.

• Employers are required on a compulsory basis, to notify the exchange of


all the vacancies other than in the unskilled category, job of temporary
nature and those to be filled in by promotion.

• Exchange also provides assistance in the field of vocational choice and


career planning and counselling programmes.
The Factories Act, 1948

 Under the act, the hours of work in a week is limited to 48 and daily hrs
are limited to 9 with max spread over of 10-1/2 hrs.

 Rest interval should normally be at least ½ hr for 5 hour’s work.

 Provides measures of safety and welfare for worker and also for
neighbours in the vicinity of factory.
The Industrial Disputes Act, 1947

• Includes business trade, undertaking, manufacturing, service,


employment, handicraft or industrial evocations of workmen.

• Dispute settlement hierarchy:


The Conciliation officer – appropriate government – Labour court /
Industrial Tribunals – Supreme Court.

• Prohibits strike and lockout under certain conditions and lays down
procedure for retrenchment, lay off and closure of industrials undertakings
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952

• It applies to employees whose monthly salary or wages are up to Rs.


5,000

• who are employed in factories employing 20 or more persons and

• Benefits are payable on termination of service either due to retirement;


discharge; or retrenchment or resignation.

• provide insurance against death of a worker and provides necessary


protection to their dependants.
The Maternity Benefit Act, 1961

• No woman shall be employed or allowed to work during the six weeks


immediately following the day of her delivery.

• A pregnant women shall not be required to do any arduous work that may
affect her health.

• Discharge or dismissal of a woman at any time during her pregnancy is


prohibited.

• In case of death of woman entitled to the maternity benefit, the employer


shall pay this benefit to her nominee or her legal representative.
The Minimum Wages Act, 1948

• This act requires the Central and State govt to fix minimum wage rate
in certain scheduled employments so as to prevent exploitation of
labour.

• This act covers up all employees who are engaged to do any work;
skilled, manual or clerical.
The Payment of Bonus Act, 1965

• Every employee drawing wages up to Rs. 3,500 pm shall be entitled to a


bonus to be paid the employer provided he has worked in the
establishment for not less than 30 working days in that year.

• Disqualification of bonus occurs where the worker has been dismissed


from service on account of fraud, riotous or violent behaviour, theft or
sabotage of any property.
The Payment of Gratuity Act, 1972

 Payable to an employee on termination of his employment after he has


rendered continuous service for not less than 5 years.

 Fortification of the services for worker’s disorderly behaviour or conduct,


offence involving moral turpitude, due negligence causing damage to
property.
The Workmen’s Compensation Act, 1923

• Arises in case of an employment injury during the course of employment.

• case of death from injury – amt equal to 50% of monthly wages or an amt
of 50,000 Rs. whichever is more is payable.

• In case of permanent disablement – amt equal to 60% of monthly wages or


an amt of 60,000 Rs. Whichever is more is payable.
Agitation activities by the Workers and Union:

Demonstration – is a communication of one’s ideas to others to whom it is


intended to be conveyed.

 Demonstration should not be carried at the workplace as the premises is held


by the employer.

 Acts which create disturbance such s shouting of slogans or carrying on


activities during office hrs is not permitted.

 Particular distance from workplace.


Hunger Strike – is resorted to instil sympathy into the heart of the employer
and to attract other workers and public in general.

• Cannot be described as an act of misconduct provided it is of a non violent


nature.

• Fundamental right to resort to ‘Satyagraha’ or ‘Hunger Strike’.

• Any worker attempting suicide under hunger strike is liable to be punished


which can extend up to imprisonment or fine.
Picketing – is watching and dissuading those who want to go to work during a
strike.

 Method of drawing attention of the public that there is a dispute between


the employer and labour.

 Picketing when carried out peacefully is a qualified right and should be


free from intimidation, coercion, fraud, threat and violence

 Right of freedom of speech and expression does not entitle a person to


incite others to commit offense.
Gherao – is a physical blockade of a target by encirclement intended to block
a particular office, residence or forcible occupation.

 Accompanied by assault, criminal trespass, mischief to person and


property etc.

 It is resorted to in order to achieve the objective not by special means but


by violence.

 It is unjust, anti social and most condemnable breach of discipline in any


undertaking.
Go – Slow – is tactics used by workers where they intentionally reduce the
speed of work to reduce production or efficiency while pretending to be
engaged in factory.

 Is an alternative to strike when union does not want to resort to full


fledged strike but at the same time take alternative action.

 Less risky but equally effective.

 Is a serious misconduct since employees claim to have remain employed


and are entitled to full wages.
Strike – refusal under a common understanding by number of people to
continue work or accept employment.

 It can take various shapes like pen down, sit down, hunger, mass casual
leave etc.

 It is not illegal but is regarded as a misconduct and calls for a disciplinary


action.

 Best possible way to avoid a strike is to keep a watch on day to day


activities of the union workers so that a sudden strike without notice can
be avoided.
Basic perquisites of discipline in the industry setting

 Goals or objectives.

 Rules and Regulations.

 Communication.

 The procedure for appeal.

 Quantum of punishment.

 Rules of conduct.
Case Study

The rise of the Bangladesh Independent Garment Workers’ Union (BIGU)

Historical background
 Partition of Bengal in 1905.
 Post independence.
 
The export garments industry
  Collaboration between an entrepreneur and a South Korean conglomerate – Daewoo.
 A decade later, almost 1.4 million workers were employed out of which 85% were female.
 Issues:
Management expected workers to work till 14 hrs a day, 7 days a week
Harsh form of discipline and supervision was carried out
Absenteeism of adequate facilities and ventilation
Low wages.
Outcome

 Underground activities which lead to forming trade union.

 Limited outreach for labour movement in Bangladesh for women.

 Diverse facilities like seminars, libraries and discussions.

 Substantial contribution by NGO’s.

 Thus BIGU was formed in 1994 and has since become the largest and
successful garment union in Bangladesh.
BIGU strategy

 Direct participation in educative programmes.


 Actual use of labour laws to address industrial issues.
 Never relied on rallies and demonstrations.
 Established its own publication – voice of the worker.
 Legal and medical assistance to workers.
 Basic literacy skills.
 Every worker to have a copy of the unions constitution and a handbook on workers
right which informs them about the labour laws in the country.

Conclusion
 BIGU thus remains an important event in the history of women’s more general
socio cultural status in Bangladesh.

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