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Labour Policies
The Factories Act, 1948
Objectives
- To ensure adequate
safety measures and to promote the health and welfare of the workers
employed in factories.
- To prevent haphazard
growth of factories through the provisions related to the approval
of plans before the creation of a factory.
Scope and coverage
- Regulates working
condition in factories.
- Basic minimum
requirements for ensuring safety, health and welfare of workers.
- Applicable to all
workers.
- Applicable to all
factories using power and employing 10 or more workers, and if not
using power, employing 20 or more workers on any day of the
preceding 12 months.
Main provisions
- Compulsory approval,
licensing and registration of factories.
- Health measures.
- Safety measures.
- Welfare measures.
- Working hours.
- Employment of women
and young persons.
- Annual leave
provision.
- Accident and
occupational diseases.
- Dangerous
operations.
- Penalties.
- Obligations and
rights of employees.
When to consult and
refer
- On starting a
factory.
- Throughout the life
of the factory.
The Minimum Wages Act, 1948
Objectives
To determine the minimum wages in industry and trade where labour
organisations are non-existent or ineffective.
Scope and coverage
- Applicable to all
employees engaged to do any work, skilled, unskilled manual or
clerical, in a scheduled employment, including out-workers.
- Fixation of minimum
wages.
Main provisions
- Fixation of minimum
wage of employees.
- Procedure for fixing
and revising minimum wages.
- Obligation of
employees.
- Rights of workers.
When to consult and
refer
At the time of fixation of salary of new/existing employees.
The Payment of Wages Act, 1936
Objectives
To ensure regular and prompt payment of wages and to prevent the
exploitation of a wage earner by prohibiting arbitrary fines and
deductions from his wages.
Scope and coverage
- Application for
payment of wages to persons employed in any factory.
- Not applicable to
wages which average Rs 1600/- ($35.83) per month or more.
- Wages include all
remuneration, bonus, or sums payable for termination of service, but
do not include house rent reimbursement, light vehicle charges,
medical expenses, TA, etc.
Main provisions
- Responsibility of
the employer for payment of wages and fixing the wage period.
- Procedures and time
period in wage payment.
- Payment of wages to
discharged workers.
- permissible
deductions from wages.
- Nominations to be
made by employees.
- Penalties for
contravention of the Act.
- Equal remuneration
for men and women.
- Obligations and
rights of employers.
- Obligations and
rights of employees.
When to consult and
refer
Deciding wages and salary administration at all times.
The Employees Provident Funds and Misc. Provisions Act, 1952
Objectives
- To make provisions
for the future of the industrial worker after he retires or for his
dependents in the case of his early death.
- Compulsory Provident
Fund
- Family Pension
- Deposit linked
insurance
Scope and coverage
- Application to
factories and establishments employing 20 or more persons.
- Can be made
applicable by central government to establishments employing less
than 20 persons or if the majority of employees agree.
- Excludes
establishments employing 50 or more persons or 20 or more persons
but less than 50 persons, until the expiry of three years in the
case of the former, and five years in the case of the former, and
five years in the case of the latter, from the date of setting up of
establishment.
- Applicable to all
persons who are employed directly or indirectly through contractors
in any kind of work.
Eligibility
Employees drawing pay not exceeding Rs. 3500/- ($78.37) per month.
Benefits
- Apart from terminal
disbursal of non-refundable withdrawals for Life Insurance Policies
- House building
- Medical treatment
- Marriage
- Higher education
- Family pension
-
Retirement-cum-withdrawal benefits
- Deposit linked
insurance Amount equal to the average balance in Provident Fund of
deceased subject to a maximum of Rs. 25,000/- ($559.79).
Workmen’s Compensation Act, 1923
To provide compensation
for workmen in cases of industrial accidental / occupational diseases in
the course of employment resulting in disablement or death. Coverage for
persons employed in Factories, Mines, Plantations, the Railways and
others mentioned in Schedule II of the Act.
Benefits
Compensation for Death
- Minimum - Rs. 20,000 ($447.83) Maximum - Rs. 1,14,000
($2,552.62)
Compensation for Permanent disablement
- Minimum - Rs. 24,000 ($537.4) Maximum - Rs. 70,000
($1567.4)
Temporary disablement
- 50% of wages for a maximum period of 5 years.
The Contract Labour (Regulation & Abolition) Act, 1970
- Not to be required
to work beyond 9 hours between 6 A.M. and 7 P.M.
- with the exception
of midwives and nurses in plantations.
The Inter-state Migrant Workmen (Regulation of Employment and Conditions
of Service) Act, 1979
- Separate toilets and
washing facilities to be provided in employment covered by the 3rd
and 6th laws.
Maternity Benefit Act, 1961
- Maternity benefits
to be provided on completion of 80 days working.
- Not required to work
during six weeks immediately following the day of delivery or
miscarriage.
- No work of arduous
nature, long hours of standing likely to interfere with
pregnancy/normal development of foetus or may cause miscarriage or
likely to affect health to be given for a period of one month
immediately preceding the period of six weeks before delivery.
- On medical
certificate, advance maternity benefit to be allowed.
- Rs. 250 ($5.6) as
medical bonus to be given in case when no prenatal confinement and
post-natal care is provided free of charge.
Equal Remuneration Act, 1976
- Payment of equal
remuneration to men and women workers for same or similar nature of
work protected under the Act and also under the provisions at ISMW
Act, mentioned above.
- No discrimination
permissible in recruitment and service conditions except where
employment of women is prohibited or restricted by or under any law.
The Children (Pledging of Labour) Act, 1933
- Any agreement to
pledge the labour of children is void.
The Bidi and Cigar Workers (Conditions of Employment) Act, 1966
- Employment of
children under 14 years of age prohibited under the laws at Sl. Nos.
2 to 5.
- Except in the
process of family based work or recognised school-based activities,
children not permitted to work in occupations connected with:
Passenger, goods mail transport by Railway Cinder picking, cleaning
of ash pits Building operations, construction Catering
establishments in Railway premises or port limits Beedi making
Carpet weaving Cement manufacturing Cloth printing Dyeing, weaving
Manufacture of matches, explosives, fireworks Mica cutting,
splitting Wool cleaning
- In occupations and
processes other than the above mentioned, work by children is
permissible only for six hours between 8.00 A.M. and 7.00 P.M. with
one day's weekly rest.
- Occupier of
establishment employing children to give notice to local Inspector
and maintain prescribed register.
The Payment of Gratuity Act, 1972
Objective
To provide for payment of gratuity on ceasing to hold office
Coverage
Factories, Mines, Oil fields, Plantations, Ports, Railway Companies,
Shops & Commercial Establishments and to other establishments to which
the Government extends the law.
Eligibility
Employees drawing wages not exceeding R. 3500/- ($78.37) per month.
Benefits
15 days wages for every completed year of service or part thereof in
excess of six months subject to a maximum of Rs. 50,000 ($119.58)
Employees State Insurance Act, 1948
Objective
To provide for health cover, Medical care and Cash benefits for
- Sickness
- Maternity
- Employment injury
- Pensions to
dependents in case of Death (or) Employment injury
Eligibility
Employees drawing wages not exceeding Rs. 3000/- ($67.17) per month
Benefits
- Compensation for
Death Minimum - Rs. 20,000 ($447.83 Maximum) - Rs. 1,14,000
($2552.62)
- Compensation for
Permanent disablement Minimum - Rs. 24,000 ($537.4) Maximum - Rs
(70,000) $1,567.4
- Temporary
disablement 50% of wages for a maximum period of 5 years.
The Payment of Bonus Act, 1965
Objectives
To provide statutory obligations for payment of bonus to persons
employed in certain establishments on the basis of profits or
productivity.
Scope and Coverage
- Applicable all over
India to factories under the Factories Act and to other
establishments employing 20 or persons on any day during a year.
- Government can
extend its coverage to establishments employing between 10 and 20
workers.
- Covers all workers
including supervisors, managers, administrators, technical and
clerical staff employed on salary or wages not exceeding Rs 2,500
($55.97) per month.
Main Provision
- Eligibility for
bonus.
- Payment of minimum
and maximum bonus.
- Time limit for
payment of bonus.
- Deductions from
bonus.
- Computation of gross
profits and available allocable surplus.
- Rights of employees.
When to Consult And
Refer
- When the factory if
registered under the Factories Act.
- When the number of
employees in the establishment reaches 20 or above.
- When calculating the
bonus.
The Shops and Establishments Act, 1953
Objectives
To provide statutory obligation and rights to employees and
employers in the unorganised sector of employment, i.e., shops and
establishments.
Scope and Coverage
- A state legislation;
each state has framed its own rules for the Act.
- Applicable to all
persons employed in an establishments with or without wages, except
the members of the employer's family.
- State government can
exempt, either permanently or for a specified period, any
establishments from all or any provisions of this Act.
Main Provisions
- Compulsory
registration of shop/establishment within thirty days of
commencement of work.
- Communications of
closure of the establishment within 15 days from the closing of the
establishment.
- Lays down the hours
of work per day and week.
- Lays down guidelines
for spread-over, rest interval, opening and closing hours, closed
days, national and religious holidays, overtime work.
- Rules for employment
of children, young persons and women
- Rules for annual
leave, maternity leave, sickness and casual leave, etc.
- Rules for employment
and termination of service.
- Maintenance of
registers and records and display of notices.
- Obligations of
employers.
- Obligations of
employees.
When to Consult And
Refer
- At the time of start
of an enterprise.
- When framing
personnel policies and rules.
The Trade Unions Act, 1926
Objective
To confer a legal and corporate status on registered trade unions.
Scope and Coverage
- Applicable to unions
of workers as well as associations of employers.
- Extends to the whole
of India.
- A central
legislation but administered and enforced by the state governments.
Main Provisions
- Defines trade union.
- Registration of a
trade union by any seven or nine workers of an establishment on
applying with a copy of the rules of the union, the name and
address, and the list of office bearers.
- Cancellation and
dissolution of trade unions.
- Obligations of
registered trade unions.
- Rights of registered
trade unions.
When to Consult And
Refer
- At the time of start
of an enterprise.
- Throughout the
running of the enterprise.
The Industrial Disputes Act
Objectives
To provide a machinery for peaceful resolution of disputes and to
promote harmonious relation between employers and workers.
Scope and coverage
- Applicable to all
industrial and commercial establishments
- Covers all workers
and supervisors drawing salaries up to Rs. 1600/- ($35.82) per
month.
- Not an applicable to
person employed in managerial and administrative capacities.
Main provisions
- Defines industry,
industrial dispute, layoff, lockout, retrenchment, trade union,
strike, wages. workman, etc.
- Provides machinery
for investigating and settling disputes through works committees,
conciliation officers, boards of conciliation, courts of enquiry,
labour courts, tribunals and voluntary arbitration.
- Reference of dispute
for adjudication.
- Awards of labour
courts and tribunals.
- Payment of wages to
workers pending proceedings in High Courts.
- Rights of appeal.
- Settlements in
outside conciliation.
- Notice of change in
employment conditions.
- Protection of
workmen during pendency of proceedings
- Strike and lockout
procedures.
- Lay-off
compensation.
- Retrenchment
compensation.
- Proceedings for
retrenchment.
- Compensation to
workmen in case of transfer of undertakings.
- Closure procedures.
- Reopening of closed
undertakings.
- Unfair labour
practices.
- Recovery of money
due from employer.
- Penalties.
- Obligations and
rights of employees.
When to consult and
refer
- When a dispute
arises with the workers' union.
- When you plan
changes in employment conditions.
- When there is a
strike.
- When there is a
lockout.
- When retrenchment of
workmen.
- When undertaking is
being transferred
- On closure of an
establishment.
- On re-opening
establishment.
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