TOPIC: LABOUR LAW ENFORCEMENT IN NGO IN INDIA

ASSIGNMENT – II

LABOUR LAW

Submitted To:

Mr. Pramod Kumar Sharma

Faculty of Law

Submitted By:

Abhya Soni
Class Roll no.02
BBA LLB (III Year)

BANASTHALI VIDYAPITH
2019-20
1
 AKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Mr. Pramod Kumar Sharma who gave
me this opportunity to do this article on the topic Labour Law Enforcement In Ngo In India, which also
helped me in doing a lot of Research and i came to know about so many new things I am really thankful to
them.
 INDEX

1 ABSTRACT
2 INTRODUCTION TO THE TOPIC
3 RAJASTHAN AND HARYANA STATE LEVEL NGO
4 TERMINATION
5 EMPLOYEE SALARY BENEFIT IN NGO
6 THE ACTS, RULES AND LAWS FOR NGO
7 NGO RULES IN INDIA
8 WHY DO WE NEED TO REGISTER AN NGO
9 CONCLUSION
10 BIBLIOGRAPHY
LABOUR LAW ENFORCEMENT IN NON-PROFIT ORGANISATION IN INDIA

ABSTRACT
Being in 21st century, everybody wanted freedom, not only freedom but the sense of respect wherever they are
working, making machinery is progress but after all those machineries has to handle by workmen. When
Unions target the most virulent form of exploitation with the view to protect and enhance their rights, seeking
where wrong is taking place, covering that part and making sure workmen don’t get under pressure just for
being ‘workmen’. Since being at highest level is easy, but controlling everyone after being at that level, that is
where the patience is checked, and that is where the exact duties arises. Staying in contact with every workmen,
and any practice like gender inequality either among workmen or among member of the organization and
workmen, something like child labor , women discrimination, unsafe terms and conditions of working, no
answer firing is where the steps has to be taken. Where NGO started coming up ganging themselves with the
same view, and same concept, but the whole concept behind being into existence is only help and developing
the society with the view that they don’t need any profit, but they are there to voluntarily help people, without
the involvement of government and also no profit. With coming up of time, there was this need to regulate and
check the workers in NGO too, because soon after with coming time they became no less than industry and
every industrial act also applies on the worker of the NGO. Paper covering the concept of certain NGOs, with
their goals, employees benefits, termination rules etc.
INTRODUCTION TO THE TOPIC

Non profit organizations are basically those organizations which are not regulated by government and their sole
purpose is to help without making any profit, in different fields like, children, women, humanitarian, animals
etc. Whereas some places have sub groups in their own company of non-governmental organization checking
on only their own members and providing services to them.

When it comes to the development, NGOs are making efforts by touching every topic and trying to cover every
field. Growing with ways of funding, or voluntarily helps. They include the term ‘voluntary’, which means
voluntarily helping people of different segments, which work for the development of society and general people
as a whole. NGOs fulfill those needs which other social, economic and political area do not want to touch or
either ignore it.

Talking about whether to take NGO as industries even when they are non governmental, the madras high court
said yes to this and the employees to be considered as ‘workman’ so that he could avail the benefits of industrial
dispute act.

Whatever the organization is dealing in, after all everybody needs human force, and workmen right? Their
rights and their duties won’t it be all same as those who are normal workmen apart from that of Non-profit
organization. Labour law in fact is a set of rules which regulates the workmen, employees, with the aim of
protecting the rights of the workmen and also making sure about every act that has been done by the workmen
and also the workplace, but the only concept that is different from the labour law that is being binding on the
labour than the labour law being binding on the workmen of this organization is that, there is no involvement of
government and profit, that is what NGO states, nonprofit organization with non-involvement of government.

The sole purpose the NGOS stood was to protect people, those areas where the government altogether can’t do
or can’t take major steps, that’s when a group of people came together with the aim of development and
betterment but with their own rights, but of course by not violating any of the government rights, surely taking
steps for a majority of people where they think the rights are involved.

Where there is involvement of workmen, there has to be some law protecting them, because they took an
initiative with the view of helping people voluntarily but then it became something not less than industries, so
the law revolving around them is the labour law and the industrial dispute act 1947.

Where there are a lot of people who sit together for a solution, there must be disputes, because the human
tendency and the human brain can’t be same as that of other twenty plus people sitting in a room,tso having
industrial disputes are common among them, there may be situation where one person has a different plan,
while the other person may not agree with him, so that’s where the difference of opinion among management
and employees on the terms of employment comes forward.
THE ROLE AND GOALS OF HARYANA AND RAJASTHAN STATE LEVEL NGOS
FOR SOCIAL DEVELOPMENT TO UNDERSTAND BETTER FOR THIS PAPER:-
IN HARYANA, NGOs are working for the development and making sure of the deprived society, making
social changes in villages and tribes, seeing the social pressure is one of the reasons for the women suicide.
Since government is not focusing completely on the same, there are people who really want to help, and came
with the development of the nonprofit organizations, without the involvement of the government, focusing on
drug addicts, women, children etc. Haryana NGOs organize camps to sensitize people about the problems,
women empowerment, obstacles faced by women in normal course of life and also domestic violence. For the
drug addicts, de-addiction free camps are being organized by these organization, making aware of people about
HIV/AIDS, by organizing small meetings, distributing pamphlets etc. they also make sure that the mentally and
physically challenge ie the specially challenged, adults and children, get their rights and are treated as equally
by providing some support to uplift and make them stand equal to the other people.

IN RAJASTHAN, being part of social development and welfare of people of the state, genuinely working for
social development and welfare of the people of urban and rural areas, working in the field of old age, women,
children, education, disasters, animals, environment protection, human rights, social rights, mental health,
physical health groups, development of art and craft culture.

Dealing with NGOs and labour laws main common topic is workmen, because the main motive is to protect
their rights, so the rules for their TERMINATION that recently came in view are :-

 The full time workmen of NGOs are not allowed to take any employment outside of the organization.
 Personnel wishing to resign, have to give one month prior notice and the reason for resigning to the
Executive Director of the organization.
 There are positions in the organization depending upon their volume and makes that redundant, person
occupying that position has to be separated from the NGO and prior notice would be given to them
before 2 months.
 There are grounds on which the employees is being terminated, which could be embezzlement,
inefficiency of work, abundant leaves, misuse of office equipments, disclosure of official information
outside the organization.
 The age of retirement is also another reason for termination, when the person has to be informed on a
prior notice of the retirement, and also the date of the same, stating the reason of employment
termination.
 NGO may ask the employee for the offence deemed and a written explanation of the same within 3 days
of working time, and then on the basis of the written explanation it will pursue the next step or of
investigating further.
EMPLOYEES SALARY BENEFITS IN NGO
 BONUS- all employees will receive a bonus equal to one month salary preceding to the festival, any
new employee will not get bonus until six months of employment is complete.
 Regular employees are expected to set aside a 10% of their monthly salary to the provident fund, and the
total amount of the provident fund could be withdrawn on the time of termination of the employment
from the NGO.
 Any sort of accident occurred to the employee, during the time of employment or on the field trip related
to the employment, an amount equal to that of 2 months would be given for medical expenses.
 Same as 5 working days schedule would be followed in NGO, which is from Monday to Friday, and the
same government calendar for holidays would be there, the Executive Director of the organization will
circulate the calendar in the starting of the year to each employee working.
 Office timings be same as for covering an 8 hour a day, starting from 9:30 AM to 5:30PM.
 Any sort of overtime will be calculated on the basis of extra hours of working and the salary, a proper
supervision of the same will be required.

THE ACTS, RULES AND LAWS FOR NGO

 India trust act, 1982
 Societies registration act, 1860
 RTI act (Right to information)

NGO LAWS IN INDIA

NGOs are the bodies that remain detached from the government and motive of earning no profit and with the
view of society development, filling gaps where the government cannot reach. An NGO can be a trust, society,
or a section 25 company.

NGO feels that they are immune to all forms of taxation. But it’s only a myth, NGO needs to prove its
genuineness and needs to show some cerificates which inckudes :-

 PAN card
 Registration under Section 12 A of Income Tax Act
 Registration under section 80 G of the Income tax Act
 FCRA registration
 TAN
 GST registration
 Professional tax
 Retirement benefits
 Shops and establishment license
WHY TO GET THE ORGANISATION REGISTERED
 Coming together with like-minded people just for social benefit, with their own funds is working
because the funds are charitable by the members who voluntarily came together, but this is only
position in the starting times, because contributing every time will become difficult, so when the
situation arises where a group of people, socially working, and people who support them voluntarily
from outside, that is when registration of NGO is important to keep a check on the funds and making
sure they are not getting misused.. And when there is formation of organization by the same people, that
is also when registration is important.
 When any person is raising funds for any work which is socially benefitting the society, the
accountability of funds there must be a legal status of the organization.
 There are certain rules of socially, and ethically based societies, so if we are following them as an
organization, registration is important.
 Raising loans from the banks, for this the bank will give loans only after checking if the organization is
registered.

CONCLUSION
I concluded that Since NGOs are equal to industries and since industries have workmen acts, rules and
regulations, labour and industrial act to protect their rights for systematic ongoing process of the industry and
also all this is important. Ngo develop with time, and their development may or may not lead to some
permanent members, with no one being superior or junior, since everybody works with one motive, the
situation of workmen do arise and their rights has to have to be protected at all level. Having rights is not
putting them under obligation but have rights and regulation is making things systematic and sorted.

BIBLIOGRAPHY
o https://ngosindia.com/ngo-registration/why-to-register-ngo/
o https://timesofindia.indiatimes.com/india/NGOs-be-treated-as-industries-for-employee-benefits-Madras-
HC/articleshow/4601259.cms
o https://www.thehindu.com/news/national/NGO-staff-public-servants-or-private-
citizens/article14511422.ece
o https://paycheck.in/labour-law-india/social-security/legislation-news/ngos-now-treated-as-industries-for-
employee-benefits
o https://www.worldvision.in/SupportGirlChild/index.aspx
o https://www.fundsforngos.org/ngo-operational-policies/employee-termination-rules-in-ngos/