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What are the main sources of employment law?

Matters related to employment in India are primarily governed by the


Constitution of India, specific laws framed by the Central and State
governments, municipal laws, collective and individual agreements, as well
as judicial precedents. These laws cover an array of issues, which may be
general or specific in nature. Based on the objective of the enactment, some
key legislation has been classified in the table below:

Employment conditions
Legislation Purpose/objective
Factories Act, 1948 To provide for the health, safety, welfare, working
hours and leave of workers in factories
(manufacturing units).
Shops & Establishment Acts (State- To regulate payment of wages, terms of service,
wise) holidays, leaves, work conditions, hours of work,
overtime, etc. for people employed in shops and
commercial establishments (such as hotels,
restaurants, bakeries, societies, charitable trusts,
educational institutions (run for gain), etc.).
Contract Labour (Regulation & To regulate the engagement of contractor and
Abolition) Act, 1970 contract labour by the principal employer.
Industrial Employment Standing Any establishment employing 100 or more
Order Act, 1946 workmen is required to regulate and codify
conditions of service and obtain certification
from the concerned regulatory authority.
Building and other construction For the benefit of workers engaged in building
workers (Regulation of and construction activities to regulate matters
employment and conditions of related to their safety, health and welfare and
service) Act, 1996 any other matters incidental thereto.

Industrial relations
Industrial Disputes Act, 1947 To provide a machinery for regulating the rights
(“IDA”) of the employees and settlement of industrial
disputes in a peaceful and harmonious manner,
along with provisions for strikes, layoffs, unfair
labour practices, lockouts and closure of an
establishment, etc.
Trade Unions Act, 1926 (“Trade To establish the rights, duties and obligations of
Unions Act”) trade unions and facilitate their registration.
Remuneration
Payment of Wages Act, 1936 It regulates the payment of wages to certain
classes of persons employed in the industry and
provides for the responsibility for payment of
wages, fixation of wage period, time and mode
of payment of wages and permissible wage
deduction.
Minimum Wages Act, 1948 To stipulate minimum rates of wages that must
be paid to skilled and unskilled labours taking
into account various factors such as the
industry, location and nature of work to be
undertaken.
Payment of Bonus Act, 1965 To obligate employers to pay bonuses to
employees and provide the principle and
formula for the calculation of the bonus,
minimum and maximum bonus payable and
enforcement of liability for payment of the
bonus.
Equal Remuneration Act, 1976 To provide for the payment of equal
(“ER Act”) remuneration to men and women workers and
for the prevention of discrimination, on the
ground of sex, against women in the matter of
employment.

Social security benefits


Payment of Gratuity Act, 1972 To provide for the payment of gratuity, a
retirement benefit paid upon cessation of
employment.

Workmen’s Compensation Act, To provide workmen and/or their dependents


1923 some relief in case of accidents arising out of or
during employment and causing either death
or disablement.

Employees Provident Fund and To provide for a scheme wherein both the
Miscellaneous Provisions Act, 1952 employee and the employer make an equal
contribution into a national fund which attracts
a stipulated interest per annum, and the
accumulated amount is paid on retirement to
the employee along with the interest that has
accrued.

Employees’ State Insurance Act, To provide for a scheme wherein the employer
1948 and the employee must contribute a certain
percentage of the monthly wages to the
Insurance Corporation.

Maternity Benefits Act, 1961: This Act entitles maternity leave for pregnant
women employees i.e. full payment despite
absence from work. As per this act, female
workers are entitled to a maximum of 12 weeks
(84 days) of maternity leave. All the organised and
un-organised offices that have more than 10
employees shall implement this act.
So this law protects the job of the female workers
during pregnancy and post-delivery. This act has
been amended in 2017.
Sexual Harassment of Women This act prohibits any kind of sexual Harassment of
employees at Workplace Act, 2013 the women workers at the workplace. This Act
came into force from 9 December 2013.
What comes under sexual Harassment:-
a) Showing pornography
b) A demand or request for sexual favours
c) Sexually coloured remarks
d) Physical contact and advances
e) Any other unwelcome physical verbal or non-
verbal behaviour of sexual nature.
f) lewd comment
This act must be implemented by all public or
private and organised or unorganised sectors that
have more than 10 employees. This act covers all
women, irrespective of her age or employment
status. Most Indian employers did not implement
this law.

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