India YEAR Book GO: Foundation PT CUM MAINS Work-Sheet

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India YEAR Book GO +
AtoZ
LABOUR reforms in
India
UPSC/EPFO Exam
Foundation PT CUM MAINS
WORK-SHEET
Part - 6
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Labour laws: UPSC/EPFO Exam

LABOUR Laws
INTRODUCTION:
All the persons in a country who are engaged in productive activities i.e. in activities that contribute to the
national product of the country constitute workforce.
Note that the workforce discussed earlier is different from another concept called labour force. It refers to
the number of workers willing and able to offer their labour at a wage rate. This is nothing but labour
supply. It refers to the work workers are willing and able to do at a given wage rate.
In India, the Labour Force Participation Rate measures the number of persons aged 15 and over who are
employed and unemployed but looking for a job divided by the total working-age population.
Labour Force Participation Rate (per 1000) for persons of age 15-59 years for each State/UT. Labour-force
participation rate is defined as the proportion of persons/person-days in the labour-force to the total
person/person-days. These ratios are given in per 1000 of person/person-days
TYPES OF WORKERS:
Hired Worker: These are workers who are employed by others (employers) and receive a salary/wage as
compensation for work. Hired workers may again be of two types:
Casual Worker: These are workers who are engaged by employers on a temporary basis for some specific
work. They are not permanent and do not receive any social security or other work benefits. Example:
Construction workers are contracted only for specific projects and not hired permanently. Seasonal workers
such as those engaged on the farm only during the harvest season are also classified as casual workers.
Regular Salaried Worker: These are workers hired by employers on a permanent basis and are paid regular
salaries/wages for their work. Example: Chartered accountants, teachers, sports trainers at a sports club.
Self-Employed: The other set of workers are those who are not employed by some employer but who own
and work for their own enterprise. Example: Proprietors, business persons.
ORGANISED SECTOR:
• The sector, which is registered with the government is called an organised sector. In this sector,
people get assured work, and the employment terms are fixed and regular.
• The sector is regulated and taxed by the government.
• There are some benefits provided to the employees working under organised sector like they get the
advantage of job security, add on benefits are provided like various allowances and perquisites. They
get a fixed monthly payment, working hours and hike on salary at regular intervals.
UNORGANISED SECTOR:
• The sector which is not registered with the government and whose terms of employment are not
fixed and regular is considered as unorganised sector. In this sector, no government rules and
regulations are followed.
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• The government does not regulate the unorganised sector, and hence taxes are not levied. This sector
includes those small size enterprises, workshops where there are low skill and unproductive
employment.
• The working hours of workers are not fixed. Moreover, sometimes they have to work on Sundays
and holidays. They get daily wages for their work, which is comparatively less than the pay
prescribed by the government.
DIFFERENCES BETWEEN ORGANISED SECTOR AND UNORGANISED SECTOR:
BASIS FOR ORGANISED SECTOR UNORGANISED SECTOR

COMPARISON
Meaning The sector in which the The sector that comprises of
employment terms are fixed small scale emterprises or
and employees have assured units and are not registered
work is Organised sector. with the government.
Governed by Various acts like Factories Not governed by any act.
Act, Bonus Act, PF Act,
Minimum Wages Act etc.
Not governed by any
act.
Government rules Strictly followed Not followed
Remuneration Regular monthly salary. Daily wages
Job security Yes No
Working hours Fixed Not fixed
Overtime Workers are paid No provision for overtime.
remuneration for overtime.
Salary of workers As prescribed by the . Less than the salary

government prescribed by the
government.
Contribution to Provident Yes No
fund by the employer
Increment in salary Once in a while Rarely
Benefits and perquisites Employees get add-on Not provided.
benefits like medical
facilities, pension, leave
travel compensation, etc.
MINISTRY OF LABOUR AND EMPLOYMENT:

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The Ministry of Labour & Employment is one of the oldest and important Ministries of the Government of
India.
The main responsibility of the Ministry is to protect and safeguard the interests of workers in general
and those who constitute the poor, deprived and disadvantage sections of the society, in particular, with
due regard to creating a healthy work environment for higher production and productivity and to develop
and coordinate vocational skill training and employment services.
Government’s attention is also focused on promotion of welfare and providing social security to the labour
force both in organized and unorganized sectors, in tandem with the process of liberalization. These
objectives are sought to be achieved through enactment and implementation of various labour laws, which
regulate the terms and conditions of service and employment of workers. The State Governments are also
competent to enact legislations, as labour is a subject in the concurrent list under the Constitution of India.
At present, there are 44 labour related statutes enacted by the Central Government dealing with minimum
wages, accidental and social security benefits, occupational safety and health, conditions of employment,
disciplinary action, formation of trade unions, industrial relations, etc.
Vision
Decent working conditions and improved quality of life of workers, ensuring India without child labor in
hazardous sectors and enhancing employability through employment services and skill development on a
sustainable basis.
LABOUR LAWS IN INDIA:
International Labour Organisation (ILO) was one of the first organisations to deal with labour issues. The
ILO was established as an agency of the League of Nations following the Treaty of Versailles, which ended
World War I.
The law relating to labour and employment is also known as Industrial law in India. It is well known that
Indian textile goods offered stiff competition to British textiles in the export market and hence in order to
make India labour costlier the Factories Act was first introduced in 1883.
Thus India received the first stipulation of eight hours of work, the abolition of child labour, and the
restriction of women in night employment, and the introduction of overtime wages for work beyond eight
hours.
Constitution Articles: The relevance of the dignity of human labour and the need for protecting and
safeguarding the interest of labour as human beings has been enshrined in Chapter-III (Articles 16, 19, 23
& 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India keeping in line with
Fundamental Rights and Directive Principles of State Policy.
ORGANISED LABOUR LAWS:

Some of the laws guiding Organised sector in India are:
1. The Employees’ State Insurance Act, 1948
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2. The Employees’ Provident Fund and Miscellaneous Provisions Act,1952
3. The Maternity Benefit Act, 1961.
4. The Minimum Wages Act, 1948
5. The Payment of Bonus Act, 1965
6. The Payment of Gratuity Act, 1972
7. The Payment of Wages Act, 1936
EPFO:
EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of
financial transactions undertaken. At present it maintains 19.34 crore accounts (Annual Report 2016-17)
pertaining to its members.
EPFO is guided by the Employees' Provident Funds & Miscellaneous Provisions Act, The Act and
Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees,
Employees' Provident Fund,consisting of representatives of Government (Both Central and State),
Employers, and Employees. 1952 which extends to the whole of India.
The EPFO is under the administrative control of Ministry of Labour and Employment. The Board operates
three schemes - EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976
(EDLI).mployment, Government of India.
Employee Pension Scheme,1952:
Employees Pension Scheme is a social security scheme run by the Employees' Provident Fund Organisation
(EPFO) for the employees of the organised sector.
Eligibility
• Be a member of the Employees' Provident Fund Scheme (EPFS), 1952 - Are a member of the ceased
Family Pension Scheme 1971 or employed in Factories engaged in Industries specified in Schedule I
of the Employees’ Provident Fund and Miscellaneous Provisions Act 1952 or employed in
establishments notified and engaging 20 or more employees with a salary/wage less than Rs. 15,000
per month at the date of appointment.
• Rendered eligible service of 10 years or more where contribution to EPFS has been made.
• Pension to be received by the member on attaining 58 years of age. Provision of withdrawal benefit
also exists.
• A member, who is permanently and totally disabled during the employment is also eligible for
pension.
• The Family of the member is eligible to receive the pension Pension following the date of death of
the member.
Features of the scheme:
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• A minimum pension of Rs. 1000/- per month to the member/disabled/widow/widower/
parent/nominee pensioners and Rs. 250/- per month for children pensioners and Rs. 750/- per month
to orphan pensioners.
• Contribution to EPS : An employee contributes 12% of his/her pay towards the EPF account. A
matching contribution is also made by the employer. 8.33% of the employee's pay is remitted by the
employer to EPS. The Central Government also contributes at the rate of 1.16 per cent of the pay of
the members to the Employees' Pension Scheme.
National Pension system:

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to
enable the subscribers to make optimum decisions regarding their future through systematic savings during
their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens. It is an
attempt towards finding a sustainable solution to the problem of providing adequate retirement income to
every citizen of India.
Under the NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated
professional fund managers as per the approved investment guidelines in to the diversified portfolios
comprising of government bonds, bills, corporate debentures and shares. These contributions would grow
and accumulate over the years, depending on the returns earned on the investment made.
At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the
scheme to purchase a life annuity from a PFRDA empanelled life insurance company apart from
withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so.
The limit of deduction u/s 80CCD of the Income-tax Act on account of contribution by the employee to
National Pension Scheme (NPS) has been increased from Rs. 1 lakh to Rs. 1.50 lakh. A deduction of Rs.
50,000/- over and above the limit of Rs. 1.50 lakh to any individual who makes contribution to NPS has
been allowed.
Advantages of NPS
• Flexible- NPS offers a range of investment options and choice of Pension Fund Manager (PFMs) for
planning the growth of your investments in a reasonable manner and see your money grow.
Individuals can switch over from one investment option to another or from one fund manager to
another subject, of course, to certain regulatory restrictions. The returns being totally market-related.
• Simple – Opening an account with NPS provides a Permanent Retirement Account Number
(PRAN), which is a unique number and it remains with the subscriber throughout his lifetime. The
scheme is structured into two tiers:
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1. Tier-I account: This is the non-withdrawable permanent retirement account into which the
accumulations are deposited and invested as per the option of the subscriber.
2. Tier-II account: This is a voluntary withdrawable account which is allowed only when there is an
active Tier I account in the name of the subscriber. The withdrawals are permitted from this account
as per the needs of the subscriber as and when claimed.
• Portable- NPS provides seamless portability across jobs and across locations, unlike all current
pension plans, including that of the EPFO. It would provide hassle-free arrangement for the
individual subscribers.
• Regulated- NPS is regulated by PFRDA, with transparent investment norms, regular monitoring and
performance review of fund managers by NPS Trust.
Models under NPS

To cater to various categories of people, there are several models of NPS. They are:
1. All citizen model
2. Government sector model
3. Corporate model
4. Atal Pension Yojana
Public Provident Fund:

Public Provident Fund schemes can be opened at certain designated post offices throughout the country and
at certain designated branches of Public Sector Banks throughout the country.
Maturity period: The account matures after 15 years. It can be continued with or without subscriptions
after a block of five years.
Deposit limits: A minimum deposit of Rs. 500 per financial year is required. The maximum deposit limit is
Rs. 70,000 in a financial year. The maximum number of deposits in a financial year is twelve
Withdrawal: Premature withdrawal is allowed every year after 5 years from the end of the year of opening
the account.
Interest: The interest rate payable is notified by the Central Government from time to time. At present it is
8% per year
Tax: An income Tax rebate is available on the deposits made and the interest credited every year is tax-free.
Minimum Wage Act,1948:

• The Act empowers the Government to fix minimum wages for employees working in specified
employments.
• It provides for review and revision of minimum wages already fixed after suitable intervals not
exceeding five years.
• Central Government is the appropriate agency in relation to any scheduled employment carried on by
or under its authority or in railway administration or in relation to mines, oilfields or major ports or
any corporation established under the Central Act.
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• State governments are the appropriate Government in relation to other scheduled employment. The
Central Government is concerned to a limited extent with building and construction activities mostly
carried on by Central Public Works Department, Ministry of Defence etc, and agricultural farms
under the Ministries of Defence and Agriculture.
• Bulk of such employment fall in the state spheres and state governments are required to fix/revise
wages and ensure their implementation in respect of scheduled employment within their spheres.
Enforcement of Minimum wages in Central sphere is secured through the Central Industrial
Relations Machinery (CIRM).
• National Floor Level Minimum Wage has been revised again to Rs 176/day. The new rates came into
effect from June 1, 2017.
Employment State Insurance Scheme:

• Employees’ State Insurance Scheme of India,is a multidimensional social security system tailored to
provide socio-economic protection to worker population and their dependants covered under the
scheme.
• The scheme was inaugurated in Kanpur on 24th February 1952. The comprehensive and multi-
pronged social security programme is administered by an apex corporate body called the Employees'
State Insurance Corporation.
Employees' State Insurance Act, 1948

The promulgation of Employees' State Insurance Act, 1948 (ESI Act), by the Parliament was the first major
legislation on social Security for workers in independent India.
The ESI Act 1948, encompasses certain health related eventualities that the workers are generally exposed
to; such as sickness, maternity, temporary or permanent disablement, Occupational disease or death due to
employment injury, resulting in loss of wages or earning capacity-total or partial. Social security provision
made in the Act to counterbalance or negate the resulting physical or financial distress in such
contingencies, are thus, aimed at upholding human dignity in times of crises through protection from
deprivation, destitution and social degradation while enabling the society the retention and continuity of a
socially useful and productive manpower.
Coverage:
• Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
• Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas
including preview theatres, road-motor transport undertakings and newspaper establishments
employing 10* or more persons.
• Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and
Educational institutions employing 10* or more persons in certain States/UTs.
Areas covered:
• The ESI Scheme is now notified in 526 Districts in 34 States and Union Territories, which
include 346 complete District, 95 District Headquarters and in 85 Districts. The scheme is
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implemented in centers. The scheme is yet to be implemented in Arunachal Pradesh and
Lakshadweep.
Contribution:
• Currently, the employee's contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of
employer's is 4.75% of the wages paid/payable in respect of the employees in every wage period.
For newly implemented areas, the contribution rate is 1% of wages of Employee and 3%
payable by Employers for first 24 months (w.e.f. 06.10.2016) Employees in receipt of a daily
average wage upto Rs.137/- are exempted from payment of contribution.
• Employers will however contribute their own share in respect of these employees.
Maternity Benefit Amendment Act,2017:

• The Amendment act amends the Maternity Benefit Act, 1961. The Act regulates the employment of
women during the period of child birth, and provides maternity benefits.
• The Act applies to factory, mines, plantations, shops and other establishments. The Bill amends
provisions related to the duration and applicability of maternity leave, and other facilities.
• Duration of maternity leave: The Act states that every woman will be entitled to maternity benefit
of 12 weeks. The Bill increases this to 26 weeks.
• Under the Act, this maternity benefit should not be availed before six weeks from the date of
expected delivery. The Bill changes this to eight weeks.
• In case of a woman who has two or more children, the maternity benefit will continue to be 12
weeks, which cannot be availed before six weeks from the date of the expected delivery.
• Maternity leave for adoptive and commissioning mothers: The Bill introduces a provision to grant
12 weeks of maternity leave to: (i) a woman who legally adopts a child below three months of
age; and (ii) a commissioning mother. A commissioning mother is defined as a biological mother
who uses her egg to create an embryo implanted in another woman.
• The 12-week period of maternity benefit will be calculated from the date the child is handed over to
the adoptive or commissioning mother.
Option to work from home: The Bill introduces a provision that states that an employer may permit a
woman to work from home. This would apply if the nature of work assigned to the woman permits her to
work from home. This option can be availed of, after the period of maternity leave, for a duration that is
mutually decided by the employer and the woman.
Crèche facilities: The Bill introduces a provision which requires every establishment with 50 or more
employees to provide crèche facilities within a prescribed distance. The woman will be allowed four visits
to the crèche in a day. This will include her interval for rest.
Informing women employees of the right to maternity leave: The Bill introduces a provision which
requires every establishment to intimate a woman at the time of her appointment of the maternity benefits
available to her. Such communication must be in writing and electronically.
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Pradhan Mantri Rojgar Protsahan Yojana (PMRPY):
The PMRPY Scheme aims to incentivise employers for employment generation by the Government paying
the full employers' EPS contribution of 12% , for the new employees, for the first three years of their
employment and is proposed to be made applicable for unemployed persons that are semi-skilled and
unskilled. The scheme is being implemented by the Ministry of Labour and Employment and is
operational since August, 2016.
Objectives
• The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is a scheme to incentivise employers
registered with the Employees' Provident Fund Organisation (EPFO) for job creation by the
Government paying the full contribution of employers to the Employee Pension Scheme (EPS) and
Employees’ Provident Fund (EPF) in respect of new employees having a new Universal Account
Number (UAN).
• This Scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing
the employment base of workers in the establishment, and on the other hand, a large number of
workers will find jobs in such establishments. A direct benefit is that these workers will have access
to social security benefits of the organized sector.
Eligiblity:
• Establishments registered with the Employees' Provident Fund Organisation (EPFO) should also
have a Labour identification Number (LIN) allotted to them under the Shram Suvidha Portal .
The LIN will be the primary reference number for all communication to be made under the PMRPY
Scheme.
• The PMRPY Scheme is targeted for employees earning wages less than Rs 15,000/- per month.
Thus, new employees earning wages more than Rs 15,000/- per month will not be eligible. A new
employee is one who has not been working in an EPFO registered establishment on a regular basis
prior to 01 April, 2016 and will be determined by the allocation of a new Aadhaar seeded Universal
Account Number (UAN) on or after 01.04.2016. In case the new employee does not have a new
UAN, the employer will facilitate this through the EPFO portal.
• The employers will continue to get the 12 % contribution paid by the Government for these eligible
new employees for the next 3 years, provided they continue in employment by the same employer.
Duration of the scheme:
The Scheme will be in operation for a period of 3 years and the Government of India will continue to pay
the full contribution to be made by the employer for the next 3 years. That is, all new eligible employees will
be covered under the PMRPY Scheme till 2019-20.
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UNORGANISED SECTOR :
The Ministry of Labour, Government of India, has categorised the unorganised labour force under four
groups depending on occupation, nature of employment, specially distressed categories and service
categories. They are:
Under Terms of Occupation:

Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in
animal husbandry, beedi rolling, labelling and packing, building and construction workers, leather workers,
weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills, etc.
come under this category.
Under Terms of Nature of Employment:
Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come
under this category.
Under Terms of Specially Distressed Category:
Toddy tappers, scavengers, carriers of head loads, drivers of animal driven vehicles, loaders and unloaders
come under this category.
Under Terms of Service Category:
Midwives, domestic workers, fishermen and women, barbers, vegetable and fruit vendors, newspaper
vendors, etc., belong to this category.
Unorganised Worker Social Security Act,2007:
An Act to provide for the social security and welfare of unorganised workers. It extends to the whole of
India.
The State Government may formulate and notify, from time to time, suitable welfare schemes for
unorganised workers, including schemes relating to provident fund; employment injury benefit; housing;
educational schemes for children; skill upgradation of workers; funeral assistance; and old age homes.
National Social Security Board:
• The Central Government shall, by notification, constitute a National Board to be known as the
National Social Security Board to exercise the powers conferred on, and to perform the functions
assigned to, it under this Act. The Union Minister for Labour and Employment is the
Chairperson.
• The Chairperson and other members of the Board shall be from amongst persons of eminence in the
fields of labour welfare, management, finance, law and administration.
• The term of the National Board shall be three years.
Functions of National Board:
The National Board shall perform the following functions, namely:—
(a) recommend to the Central Government suitable schemes for different sections of unorganised workers;
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(b) advise the Central Government on such matters arising out of the administration of this Act as may be
referred to it;
(c) monitor such social welfare schemes for unorganised workers as are administered by the Central
Government;
(d) review the progress of registration and issue of identity cards to the unorganised workers;
(e) review the record keeping functions performed at the State level;
(f) review the expenditure from the funds under various schemes; and
(g) undertake such other functions as are assigned to it by the Central Government from time to time.
State level:
Even State Social Security Boards will be formed at the State level headed by the State Ministry of
Labour.
District level:
The record keeping functions for the purpose of this Act shall be performed by the District Administration:
Provided that the State Government may direct that the record keeping function shall be performed by—
(a) the District Panchayat in rural areas; and
(b) the Urban Local Bodies in urban areas.
Workers facilitation centres:

The State Government may set up such Workers' facilitation centres as may be considered necessary from
time to time to perform the following functions, namely:—
(a) disseminate information on available social security schemes for the unorganised workers;
(b) facilitate the filling, processing and forwarding of application forms for registration of unorganised
workers;
(c) assist unorganised worker to obtain registration from the District Administration;
(d) facilitate the enrollment of the registered unorganised workers in social security schemes.
Eligibility for registration and social security benefits.

(1) Every unorganised worker shall be eligible for registration subject to the fulfilment of the following
conditions, namely:—
(a) he or she shall have completed 14 years of age; and
(b) a self-declaration by him or her confirming that he or she is an unorganised worker.
(2) Every eligible unorganised worker shall make an application in the prescribed form to the District
Administration for registration.
(3) Every unorganised worker shall be registered and issued an identity card by the District
Administration which shall be a smart card carrying a unique identification number and shall be portable.
(4) If a scheme requires a registered unorganised worker to make a contribution, he or she shall be eligible
for social security benefits under the scheme only upon payment of such contribution.
(5) Where a scheme requires the Central or State Government to make a contribution, the Central or State
Government, as the case may be, shall make the contribution regularly in terms of the scheme.
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Pradhan Mantri Matru Vandana Yojana:
Pradhan Mantri Matru Vandana Yojana (PMMVY) is a Maternity Benefit Programme that is implemented
in all the districts of the country in accordance with the provision of the National Food Security Act, 2013.
Objectives:
Providing partial compensation for the wage loss in terms of cash incentive s so that the woman can take
adequate res t before and after delivery of the first living child.
The cash incentive provided would lead to improved health seeking behaviour amongst the Pregnant
Women and Lactating Mothers (PW& LM).
Target beneficiaries:
1.All Pregnant Women and Lactating Mothers, excluding PW&LM who are in regular employment with the
Central Government or the State Governments or PSUs or those who are in receipt of similar benefits under
any law for the time being in force.
2.All eligible Pregnant Women and Lactating Mothers who have their pregnancy on or after 01.01.2017 for
first child in family.
3.The date and stage of pregnancy for a beneficiary would be counted with respect to her LMP date as
mentioned in the MCP card.
4. Case of Miscarriage/Still Birth :
• A beneficiary is eligible to receive benefits under the scheme only once.
• In case of miscarriage/still birth, the beneficiary would be eligible to claim the remaining
instalment(s) in event of any future pregnancy.
• Thus, after receiving the 1st instalment, if the beneficiary has a miscarriage, she would only be
eligible for receiving 2nd and 3rd instalment in event of future pregnancy subject to fulfilment of
eligibility criterion and conditionalities of the scheme. Similarly, if the beneficiary has a miscarriage
or still birth after receiving 1 st and 2nd instalments, she would only be eligible for receiving 3rd
instalment in event of future pregnancy subject to fulfilment of eligibility criterion and
conditionalities of the scheme.
5. Case of Infant Mortality: A beneficiary is eligible to receive benefits under the scheme only once. That is,
in case of infant mortality, she will not be eligible for claiming benefits under the scheme, if she has already
received all the instalments of the maternity benefit under PMMVY earlier.
6. Pregnant and Lactating AWWs/ AWHs/ ASHA may also avail the benefits under the PMMVY subject to
fulfilment of scheme conditionalities.
Benefits under PMMVY:
• Cash incentive of Rs 5000 in three instalments i.e. first instalment of Rs 1000/ - on early registration
of pregnancy at the Anganwadi Centre (AWC) / approved Health facility as may be identified by the
respective administering State / UT, second instalment of Rs 2000/ - after six months of pregnancy
on receiving at least one ante-natal check-up (ANC) and third instalment of Rs 2000/ - after child
birth is registered and the child has received the first cycle of BCG, OPV, DPT and Hepatitis - B, or
its equivalent/ substitute.
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• The eligible beneficiaries would receive the incentive given under the Janani Suraksha Yojana (JSY)
for Institutional delivery and the incentive received under JSY would be accounted towards
maternity benefits so that on an average a woman gets Rs 6000 / -
Draft Policy on Domestic Workers:

Features
• Inclusion of domestic workers in the existing legislations
• Domestic workers will have the right to register as workers with the State Labour Department. Such
registration will facilitate their access to rights & benefits accruing to them as workers.
• Right to form their own associations, trade unions
• Right to have minimum wages, access to social security, protection from abuse, harassment, violence
• Right to enhance their professional skills
• Protection of domestic workers from abuse and exploitation who are recruited to work abroad
• Domestic Workers to have access to courts, tribunals, etc.
• Establishment of a mechanism for regulation of placement agencies.
Building and Other Construction Workers Related Laws (Amendment) Bill, 2013 (MAINS):
• The Building and Other Construction Workers Related Laws (Amendment) Bill, 2013 was
introduced in the Rajya Sabha by the Minister of Labour and Employment on March 18, 2013.
• The Bill amends two laws i.e. the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 (RECS Act) and the Building and Other
Construction Workers' Welfare Cess Act, 1996 (WC Act).
• The RECS Act regulates the employment, service conditions, health, safety and welfare measures of
building and other construction workers.
• The WC Act provides for the levy and collection of a cess on the employer, at the rate of one to two
percent of the cost of construction incurred by him. The cess collecting authority (local authority or
state government) deducts upto one percent of the amount collected towards the cost of collecting
such cess. The cess is paid to the Building and Construction Workers’ Welfare Board constituted
under RECS Act.
• The RECS Act is being amended to remove the upper limit of Rs 10 lakh as the total cost of
construction. The Bill allows the central government to notify the maximum cost of construction.
• Under the RECS Act, every building worker between the ages of 18 to 60 years who engaged in any
building or construction work for at least 90 days (during the past one year) is eligible to register as a
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beneficiary. The amendments remove the: (i) 90 day requirement for registration of workers and, (ii)
the upper age limit of 60 years.
• Till the state governments constitute their State Welfare Boards, the amendments provide for the
constitution of a Board that will perform such functions. The Board will consist of a chairperson, i.e.
Secretary of the Department of Labour, and Secretaries of the Department of Finance.
• As per the RECS Act, the Welfare Board can incur expenses for salaries, allowances and other
administrative requirements upto five per cent of its total expenses during that financial year. The
amendment removes this limit and allows the central government to notify the percentage.
• The amendments in the RECS Act allow the central government to appoint and coordinate with
Director Generals (not exceeding 10) in laying down the standards of inspection and they shall
exercise powers of an inspector in the respective area.
• The WC Act is amended to prescribe a time limit of 30 days for cess collecting authorities to deposit
cess to the Welfare Board.
• The Bill allows state governments to file complaints for contravention of provisions of the Act.
Pradhan Mantri Shram Yogi Maan-dhan:

Pradhan Mantri Shram Yogi Maan-dhan is a central government scheme meant for old age protection and
social security of Unorganised Workers (UW).
Unorganised Workers (UW) are mostly engaged as rickshaw pullers, street vendors, mid-day meal workers,
head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, home-based workers,
own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather
workers, audio- visual workers or in similar other occupations. There are estimated 42 crore such
unorganised workers in the country.
Eligibility Criteria
• Should be an unorganised worker (UW)
• Entry age between 18 and 40 years
• Monthly Income Rs 15000 or below
Should not be
• engaged in Organized Sector (membership of EPF/NPS/ESIC)
• an income tax payer
He/ She should possess
• Aadhar card
• Savings Bank Account / Jan Dhan account number with IFSC
Features
It is a voluntary and contributory pension scheme, under which the subscriber would receive a minimum
assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the
spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension
is applicable only to spouse.
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Contribution by the UW Subscriber : Through ‘auto-debit’ facility from his/ her savings bank account/
Jan- Dhan account from the date of joining PM-SYM till the age of 60 years as per the chart below. The
Central Government will also give equal matching contribution in his pension account.
Exit and Withradwal:
• If he/ she exits the scheme within a period of less than 10 years, the beneficiary’s share of
contribution only will be returned to him with savings bank interest rate.
• If subscriber exits after a period of 10 years or more but before 60 years of age, the beneficiary’s
share of contribution along with accumulated interest as actually earned by fund or at the savings
bank interest rate whichever is higher.
• If a beneficiary has given regular contributions and died due to any cause, his/ her spouse will be
entitled to continue the scheme subsequently by payment of regular contribution or exit by receiving
the beneficiary’s contribution along with accumulated interest as actually earned by fund or at the
savings bank interest rate whichever is higher.
• If a beneficiary has given regular contributions and become permanently disabled due to any cause
before 60 years, and unable to continue under the scheme, his/ her spouse will be entitled to continue
the scheme subsequently by payment of regular contribution or exit the scheme by receiving the
beneficiary’s contribution with interest as actually earned by fund or at the savings bank interest rate
whichever is higher.
• After the death of subscriber as well as his/her spouse, the entire corpus will be credited back to the
fund.
Atal Pension Yojana:

• Atal Pension Yojana (APY) addresses the old age income security of the working poor and the
longevity risks among the workers in unorganised sector. It encourages the workers in unorganised
sector to voluntarily save for their retirement. The Government had launched the scheme with effect
from 1st June, 2015. The scheme replaces the Swavalamban Yojana .
• To get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the
subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18
years. For the same fixed pension levels, the contribution would range between Rs. 291 and Rs.
1,454, if the subscriber joins at the age of 40 years.
Benefits of APY
• Fixed pension for the subscribers ranging between Rs.1000 to Rs. 5000, if s/he joins and contributes
between the age of 18 years and 40 years. The contribution levels would vary and would be low if
subscriber joins early and increase if s/he joins late.
• The same pension is payable to Spouse after death of Subscriber.
• Return of indicative pension wealth to nominees after death of spouse.
• Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National
Pension System (NPS). The tax benefits include the additional deduction of Rs 50,000 under section
80CCD(1).
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Eligibility for APY
• Atal Pension Yojana (APY) is open to all bank account holders who are not members of any
statutory social security scheme.
Age of joining and contribution period
The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of
contribution by the subscriber under APY would be 20 years or more.
Pradhan Mantri Suraksha Bima Yojana (PMSBY - for Accidental Death Insurance)
Eligibility: Available to people in age group 18 to 70 years with bank account.
Premium: Rs.12 per annum.
Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account on or
before 1 st June of each annual coverage period under the scheme.
Risk Coverage:
Death - Rs 2 Lakh
Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and
loss of use of hand or foot - Rs 2 Lakh
Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot – Rs.1 Lakh.
Eligibility :
Any person having a bank account and Aadhaar number linked to the bank account can give a simple form
to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the
form.
Terms of Risk Coverage :
A person has to opt for the scheme every year. S/He can also prefer to give a long-term option of continuing
in which case his/her account will be auto-debited every year by the bank.
Who will implement this Scheme?:
• The scheme will be offered by all Public Sector General Insurance Companies and all other
insurers who are willing to join the scheme and tie-up with banks for this purpose.
Government Contribution:
• Various Ministries can co-contribute premium for various categories of their beneficiaries from their
budget or from Public Welfare Fund created in this budget from unclaimed money. This will be
decided separately during the year.
• Common Publicity Expenditure will be borne by the Government.
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY - for Life Insurance Cover)
Eligibility :
Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme
before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years
subject to payment of premium.
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Premium :
Rs.330 per annum. It will be auto-debited in one installment.
Payment Mode:
The payment of premium will be directly auto-debited by the bank from the subscribers account.
Risk Coverage :
Rs.2 Lakh in case of death for any reason.
Terms of Risk Coverage :
A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing,
in which case his account will be auto-debited every year by the bank.
Who will implement this Scheme:
• The scheme will be offered by Life Insurance Corporation and all other life insurers who are
willing to join the scheme and tie-up with banks for this purpose.
Government Contribution:
• Various other Ministries can co-contribute premium for various categories of their beneficiaries out
of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This
will be decided separately during the year.
• Common Publicity Expenditure will be borne by Government.
Prime Minister’s Employment Generation Program:

• Government of India has approved the introduction of a new credit linked subsidy programme called
Prime Minister's Employment Generation Programme (PMEGP) by merging the two schemes that
were in operation till 31.03.2008, namely Prime Minister's Rojgar Yojana (PMRY) and Rural
Employment Generation Programme (REGP) for generation of employment opportunities through
establishment of micro enterprises in rural as well as urban areas.
• PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium
Enterprises (MoMSME).
• At the national level, the Scheme is being implemented by Khadi and Village Industries
Commission (KVIC), a statutory organization under the administrative control of the Ministry of
MSME as the single nodal agency.
• At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi
and Village Ind ustries Boards (KVIBs) and District Industries Centres (DICs) and banks.
• The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for
eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts.
• The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed Non
Government Organization (NGOs)/reputed autonomous institutions/Self Help Groups (SHGs) /
National Small Industries Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi
Udyami Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant bodies in the
implementation of the Scheme, especially in the area of identification of beneficiaries, of area
specific viable projects, and providing training in entrepreneurship development.
Objectives
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• To generate continuous and sustainable employment opportunities in Rural and Urban areas of the
country
• To provide continuous and sustainable employment to a large segment of traditional and prospective
artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
• To facilitate participation of financial institutions for higher credit flow to micro sector.
Eligibility
1. Individuals above 18 years of age
2. VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs
for Service Sector
3. Self Help Groups and Charitable Trusts
4. Institutions Registered under Societies Registration Act- 1860
5. Production based Co-operative Societies
Salient features of the scheme
• The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and
through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC /
KVIB / DIC respectively.
• No income ceiling for setting up of projects.
• Assistance under the Scheme is available only to new units to be established.
• Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes
are not eligible.
• Any industry including Coir Based projects excluding those mentioned in the negative list.
• Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly
areas.
• Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service
Sector.
OTHER LABOUR ACTS:
Child Labour (Prohibition and Regulation) Amendment Rules,2017:

The Government of India decided to make further amendments in the Act after an extensive consultation
with the stakeholders. Provisios under the Child Labour (Prohibition and Regulation) Amendment Rules are
as follows:
• A broad and specific framework for prevention, prohibition, rescue and rehabilitation of children and
as well as adolescent workers.
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•Clarity on issues related to family enterprises.
•Safeguards for creative workers or artists that have been permitted to work under the Act, with
respect to working hours and working conditions.
• Set of specific duties and responsibilities for law enforcement agencies to ensure effective
implementation and compliance of the Act.
S.No Before the After the amendment Impact
amendment
1 Children below the Complete prohibition Complete ban that
age of 14 years will of employment of ensures all children
be allowed to work in children below the under 14 years are in
occupations except age of 14 school as per the
for 18 occupations Right To Education
and 65 processes. Act.
2 No help was Children allowed to This allows the
provided to children work only after working kids to learn
working after school school hours or their traditional skills
hours who were during vacations and also helps them
below the age of 14 under the condition build life values such
yrs. that the occupations as a sense of
were hazardous. discipline, decision
making,
responsibility, and so
on
3 Children below the Children below the This protects the
age of 14 years will age of 14 years will health and ensures
be permitted to work be allowed to work in children’s well being.
in Family Family Children could work
Business/occupation Business/Enterprises in their family
both hazardous and only if they are non- businesses only if it
non-hazardous. hazardous. is safe for them.
4 Children will be able Children will be able This allows the

to work in family to work in family working children to
businesses even if it businesses even if it learn their traditional
didn’t belong to the didn’t belong to the skills and values of
child’s family. child’s family only if life.
the occupation is
non-hazardous.
5 Children above the Children between 14- Protection of

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age of 14 years didn’t 18 years are adolescent’s health.
have any prohibitions categorised as
on employment. Adolescents and are
not allowed to work
in hazardous
occupations.
6 Adolescents were not Regulated working Adolescent working
provided with any conditions for in non-hazardous
working regulations adolescents working occupations cannot
regarding working in non-hazardous be exploited.
hours and conditions. occupations are in
place.
7 Schedule of 18 A child can’t work in There is a complete
occupations and 65 any occupation, so ban on work and not
processes ( called the list of prohibited just on the 18
certain occupations occupations has been occupations and 65
& processes) made infinite as there processes.
applicable for a is a complete ban on
child; tells where a employment.
child cannot work.
8 No schedule of Schedule of Protection of
hazardous hazardous processes adolescents health.
occupations and and occupations
processes where an provided where an
adolescent cannot adolescent cannot
work work.
9 No provision of The government can Enabling provision to
providing a positive provide a positive list allow the
list of occupations of non-hazardous Government to
where an adolescent occupations where an restrict the
can work. adolescent can work employment of
and a child can assist.adolescents in
occupations that are
classified as non-
hazardous.
10 Contravention of It is cognizable There is no need of
provisions non- offence an approval of the
cognizable offence. DM to take action on
the FIR on violation
of the child labour
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Law.
11 No Officer District Magistrate or Provision for laying
responsible for the a subordinate officer specific
implementation of can be made responsibility on the
Act. responsible for designated Officer
enforcement and can for violating the
be conferred with provisions of the Act
such powers. – this ensures better
enforcement.
12 No provision of Statutory provision The statutory
rehabilitation fund for a child and provision for a
for rescued children. adolescent labour rehabilitation fund
rehabilitation fund will ensure that the
with contribution of child/adolescent is
appropriate not only rescued but
Government also his/her future is
ensured for each secured by the
child rescued. amount collected in
the fund. This
amount can be used
for education and
welfare of the
rescued child.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013:
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013
addresses the issue of workplace sexual harassment faced by women.
Women covered under the Act:
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• The Act recognizes the right of every woman to a safe and secure workplace environment
irrespective of her age or employment/work status. Hence, the right of all women working or visiting
any workplace whether in the capacity of regular, temporary, adhoc, or daily wages basis is protected
under the Act.
• It includes all women whether engaged directly or through an agent including a contractor, with or
without the knowledge of the principal employer.They may be working for remuneration, on a
voluntary basis or otherwise.
• Their terms of employment can be express or implied.
• Further, she could be a co-worker, a contract worker, probationer, trainee, apprentice, or called by
any other such name.
• The Act also covers a woman, who is working in a dwelling place or house.
Definition of Workplace:
A workplace is defined as “any place visited by the employee arising out of or during the course of
employment, including transportation provided by the employer for undertaking such a journey.”
As per this definition, a workplace covers both the organised and un-organised sectors.
It also includes all workplaces whether owned by Indian or foreign company having a place of work in
India.
As per the Act, workplace includes:

• Government organizations, including Government company, corporations and cooperative societies;
• Private sector organisations, venture, society, trust, NGO or service providers etc. providing services
which are commercial, vocational, educational, sports, professional, entertainment, industrial, health
related or financial activities, including production, supply, sale, distribution or service;
• Hospitals/Nursing Homes;
• Sports Institutes/Facilities;
• Places visited by the employee (including while on travel) including transportation provided by
employer;
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• A dwelling place or house.
The Act defines the Unorganised Sector as:
• Any enterprise owned by an individual or self-employed workers engaged in the production or sale
of goods or providing services of any kind;
• Any enterprise which employs less than 10 workers.
Sexual harassment includes:
“Sexual Harassment” includes anyone or more of the following unwelcome acts or behaviour ( whether
directly or by implication), namely :
(i) Physical contact or advances;

(ii) A demand or request for sexual favours;
(iii) Making sexually coloured remarks;
(iv) Showing pornography;
(v) Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature
Important case: Dr. Punita K. Sodhi v. Union of India & Ors. W.P., 2010
In 2010, the High Court of Delhi endorsed the view that sexual harassment is a subjective experience and
for that reason held "We therefore prefer to analyze harassment from the (complainant’s) perspective.
The Factories (Amendment) Bill, 2016
The Bill amends the Factories Act, 1948. The Act regulates the safety, health and welfare of factory
workers. The Bill amends provisions related to overtime hours of work.
Power to make rules on various matters: The Act permits the state government to prescribe rules on a
range of matters, including double employment, details of adult workers to be included in the factory’s
register, conditions related to exemptions to certain workers, etc. The Bill gives such rule making powers to
the central government as well.
Powers to make rules for exemptions to workers: Under the Act, the state government may make rules to
(i) define persons who hold management or confidential positions; and (ii) exempt certain types of adult
workers (e.g. those engaged for urgent repairs) from fixed working hours, periods of rest, etc. The Bill gives
such rule making powers to both, the central and state governments.
Under the Act, such rules will not apply for more than five years. The Bill modifies this provision to state
that the five-year limitation will not apply to rules made after the enactment of this Bill.
Overtime hours of work in a quarter: The Act permits the state government to make rules related to the
regulation of overtime hours of work. However, the total number of hours of overtime must not exceed 50
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hours for a quarter. The Bill raises this limit to 100 hours. Rules in this regard may be prescribed by the
central government as well.
Overtime in public interest: The Bill introduces a provision which permits the central or state government
to extend the 115-hour limit to 125 hours. It may do so because of (i) excessive work load in the factory and
(ii) public interest.
LABOUR REFORMS:
Initiatives taken by the Central Government to reform the labour laws in India are giver below:
Legislative Initiatives:
1. Under Payment of Bonus Amendment Act, eligibility limit for payment of bonus enhanced from
Rs 10000/- to Rs. 21000/- per month and the Calculation Ceiling from Rs. 3500/- to Rs. 7000/- or the
minimum wages.
2. Payment of Wages (Amendment) Act, 2017 enabling payment of Wages to employees by Cash or
Cheque or crediting it to their bank account.
3. Child Labour (Prohibition and Regulation) Amendment Act, 2016 provides for complete ban on
employment of children below 14 years in any occupation or process.
4. Maternity Benefit Amendment Act, 2017, increases the paid maternity leave from 12 weeks to 26
weeks.
5. The Employee Compensation (Amendment) Act, seeks to rationalize penalties and strengthen the
rights of the workers under the Act.
6. The Payment Of Gratuity (Amendment) Act, 2018, provides flexibility to the Central Government
firstly to increase the ceiling limit of gratuity to such amount as may be notified from time to time
and secondly to enhance the calculation of continuous service for the purpose of gratuity in case of
female employees who are on maternity leave to such period as may be notified from time to time.
Vide Notification dated 29th March, 2018, the ceiling limit of gratuity has been increased from Rs. 10
Lakh to 20 Lakh and this period of maternity leave for calculation purpose has been enhanced from
12 weeks to 26 weeks.
Governance Reforms:
1. Replacement of the 56 Registers/Forms under 9 Central Labour Laws and Rules made there under in
to 5 common Registers/Forms. This will save efforts, costs and lessen the compliance burden by
various establishments.
2. A Model Shops and Establishments (RE&CS) Bill, 2016 has been circulated to all States/UTs for
adoption with appropriate modification. The said Bill inter alia provides for freedom to operate an
Establishment for 365 days in a year without any restriction on opening/closing time and enables
employment of women during night shifts if adequate safety provisions exist.
26

3. Under Industrial Employment (Standing Orders) Act, 1946, the category i.e. Fixed Term
Employment, with all Statutory Benefits, has been extended to all Sectors to impart flexibility to an
establishment to employ people to meet the fluctuating demands, vide the Industrial Employment
(Standing Orders) Central (Amendment) Rules, 2018.
4. UNIFIED ANNUAL RETURN - "Unified Annual Return returns have been made mandatory in
respect of the these Central Labour Acts [the Payment of Wages Act, 1936, the Minimum Wages
Act, 1948, the Maternity Benefit Act, 1961, the Payment of Bonus Act, 1965, the Industrial
Disputes Act, 1947] on the Shram Suvidha Portal".
Code on Social Security, 2019
It replaces nine laws related to social security, including the Employees’ Provident Fund Act, 1952, the
Maternity Benefit Act, 1961, and the Unorganised Workers’ Social Security Act, 2008.
Social security refers to measures to ensure access to health care and provision of income security to
workers.
Social security schemes: Under the Code, the central government may notify various social security schemes
for the benefit of workers. These include an Employees’ Provident Fund (EPF) Scheme, an Employees’
Pension Scheme (EPS), and an Employees’ Deposit Linked Insurance (EDLI) Scheme. These may provide
for a provident fund, a pension fund, and an insurance scheme, respectively.
In addition, the central or state government may notify specific schemes for gig workers, platform workers,
and unorganised workers to provide various benefits, such as life and disability cover.
Gig workers refer to workers outside of the traditional employer-employee relationship (e.g.,
freelancers).
Coverage and registration: The Code specifies different applicability thresholds for the schemes
Contributions: The EPF, EPS, EDLI, and ESI Schemes will be financed through a combination of
contributions from the employer and employee.
Schemes for gig workers, platform workers, and unorganised workers may be financed through a
combination of contributions from the employer, employee, and the appropriate government.
Social security organisations: The Code provides for the establishment of several bodies to administer the
social security schemes. These include:
(i) a Central Board of Trustees, headed by the Central Provident Fund Commissioner, to administer the
EPF, EPS and EDLI Schemes,
(ii) an Employees State Insurance Corporation
(iii) national and state-level Social Security Boards, headed by the central and state Ministers for Labour and
Employment, respectively, to administer schemes for unorganised workers, and
27

(iv) state-level Building Workers’ Welfare Boards, headed by a Chairperson nominated by the state
government, to administer schemes for building workers.
Inspections and appeals: The appropriate government may appoint Inspector-cum-facilitators to inspect
establishments covered by the Code, and advise employers and employees on compliance with the Code.
Administrative authorities may be appointed under the various schemes to hear appeals under the
Code.
Note: For instance, the appropriate government may notify an appellate authority to hear appeals against the
order of the Inspector-cum-facilitator for non-payment of maternity benefits. The Code also specifies
judicial bodies which may hear appeals from the orders of the administrative authorities
The Code on Wages, 2019:

28
It seeks to regulate wage and bonus payments in all employments where any industry, trade, business, or
manufacture is carried out.
The Code replaces the following four laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum
Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976.
Coverage:
The Code will apply to all employees. The central government will make wage-related decisions for
employments such as railways, mines, and oil fields, among others. State governments will make decisions
for all other employments.
Wages include salary, allowance, or any other component expressed in monetary terms. This does not
include bonus payable to employees or any travelling allowance, among others.
29

Floor wage: According to the Code, the central government will fix a floor wage, taking into account living
standards of workers. Further, it may set different floor wages for different geographical areas. Before
fixing the floor wage, the central government may obtain the advice of the Central Advisory Board and may
consult with state governments.
The minimum wages decided by the central or state governments must be higher than the floor wage. In case
the existing minimum wages fixed by the central or state governments are higher than the floor wage, they
cannot reduce the minimum wages.
Fixing the minimum wage:

The Code prohibits employers from paying wages less than the minimum wages. Minimum wages will be
notified by the central or state governments. This will be based on time, or number of pieces produced.
The minimum wages will be revised and reviewed by the central or state governments at an interval of not
more than five years. While fixing minimum wages, the central or state governments may take into account
factors such as: (i) skill of workers, and (ii) difficulty of work.
Overtime:
The central or state government may fix the number of hours that constitute a normal working day. In case
employees work in excess of a normal working day, they will be entitled to overtime wage, which must be at
least twice the normal rate of wages.
Payment of wages:
Wages will be paid in (i) coins, (ii) currency notes, (iii) by cheque, (iv) by crediting to the bank account, or
(v) through electronic mode. The wage period will be fixed by the employer as either: (i) daily, (ii) weekly,
(iii) fortnightly, or (iv) monthly.
Deductions: The deductions should not exceed 50% of the employee’s total wage.
Determination of bonus:
All employees whose wages do not exceed a specific monthly amount, notified by the central or state
government, will be entitled to an annual bonus.
The bonus will be at least:
(i) 8.33% of his wages, or
(ii) Rs 100, whichever is higher. In addition, the employer will distribute a part of the gross profits
amongst the employees. This will be distributed in proportion to the annual wages of an employee.
An employee can receive a maximum bonus of 20% of his annual wages.
Gender discrimination:
The Code prohibits gender discrimination in matters related to wages and recruitment of employees for the
same work or work of similar nature. Work of similar nature is defined as work for which the skill, effort,
experience, and responsibility required are the same.
Advisory boards: The central and state governments will constitute advisory boards.
a.The Central Advisory Board will consist of: (i) employers, (ii) employees (in equal number as employers),
(iii) independent persons, and (iv) five representatives of state governments.
b.State Advisory Boards will consist of employers, employees, and independent persons. Further, one-third
of the total members on both the central and state Boards will be women.
30

The Boards will advise the respective governments on various issues including: (i) fixation of minimum
wages, and
(ii) increasing employment opportunities for women.
Offences: The Code specifies penalties for offences committed by an employer, such as:
(i) paying less than the due wages, or
(ii) for contravening any provision of the Code. Penalties vary depending on the nature of offence, with
the maximum penalty being imprisonment for three months along with a fine of up to one lakh
rupees.
Pandit Deendayal Upadhyay Shramev Jayate Karyakram:

Key elements
• A dedicated Shram Suvidha Portal: That would allot Labour Identification Number (LIN) to nearly
6 lakhs units and allow them to file online compliance for 16 out of 44 labour laws
• An all-new Random Inspection Scheme: Utilizing technology to eliminate human discretion in
selection of units for Inspection, and uploading of Inspection Reports within 72 hours of inspection
mandatory
• Universal Account Number: Enables 4.17 crore employees to have their Provident Fund account
portable, hassle-free and universally accessible
• Apprentice Protsahan Yojana: Will support manufacturing units mainly and other establishments
by reimbursing 50% of the stipend paid to apprentices during first two years of their training
• Revamped Rashtriya Swasthya Bima Yojana: Introducing a Smart Card for the workers in the
unorganized sector seeded with details of two more social security schemes
1.Shram Suvidha Portal
The objective of the unified web portal is to consolidate information of Labour Inspection and its
enforcement, which will lead to transparency and accountability in inspections. The compliances would be
reportable in Single Harmonized Form which will make it simple and easy for those filing such forms. The
performance will be monitored using key indicators thus making the evaluation process objective. The portal
also has an effective grievance redressal System. It promotes the use of a common Labour Identification
Number (LIN) by all implementing agencies.
The 4 main features of the portal are:

• Unique labour identification number (LIN) will be allotted to Units to facilitate online registration.
• Filing of self-certified and simplified Single Online Return by the industry. Now Units will only file
a single consolidated Return online instead of filing 16 separate Returns.
• Mandatory uploading of inspection Reports within 72 hours by the Labour inspectors.
• Timely redressal of grievances will be ensured with the help of the portal.
2.Labour Inspection Scheme

31

So far the units for inspection were selected locally without any objective criteria. To bring in transparency
in labour inspection, a transparent Labour Inspection scheme has been developed.
Features:
• Serious matters are to be covered under the mandatory inspection list.
• A computerized list of inspections will be generated randomly based on pre-determined objective
criteria.
• Complaints based inspections will also be determined centrally after examination based on data and
evidence.
• There will be provision of Emergency List for inspection of serious cases in specific circumstances.
• A transparent Inspection Scheme will provide a check on the arbitrariness in compliance mechanism.
3.Portability through Universal Account Number (UAN) for Employees Provident Fund
Under the scheme, complete information for approximately 4 crore subscribers of EPF has been centrally
compiled and digitized and a UAN has been allotted to all. The UAN is being seeded with Bank account and
Aadhar Card and other KYC details for financial inclusion of vulnerable section of society and their unique
identification. This will ensure portability of the Social Security Benefits to the labour of organised sector
across the jobs and geographic areas. The EPF account of employee will be now be updated monthly and at
the same time s/he will be informed through SMS. Finally it will ensure that each of the 4 crore or more EPF
account holders have direct access to their EPF accounts and will also enable them to consolidate all their
previous accounts (approximately Rs 27000 Crore are currently lying with EPFO in inoperative accounts).
The minimum pension for employees has been introduced first time so that employees’ pension is not less
than Rs. 1000 per month. The wage ceiling has been raised from Rs. 6500 to Rs. 15000 per month to ensure
that vulnerable groups are covered under EPF Scheme.
4.Recognition of Brand Ambassadors of ITIs

The Industrial Training Institutes (ITIs) in the country are the backbone of the vocational training system,
the only source of supply of skilled manpower to manufacturing industry. There are 11,500 ITIs having
about 16 lakh seats. But this is grossly inadequate for supplying skilled manpower to Indian industry. Only
10% of the workforce has got formal or informal technical training. Only one fourth of this is formally
trained. There is also another big imbalance. The intake capacity of undergraduate engineering colleges was
more than 16 lakh in India which was almost same as seating capacity of ITIs.
As a general trend, pass outs from education system do not take admission in the ITIs as their first choice.
Mostly students end up in ITI after exhausting all other options for higher education. This is because, blue
collar work is not respected and regarded in the society. For meeting the skill needs of the industry and for
enhancing employability of the youth, it is needed to attract more youth to it is by enhancing dignity of
vocational training.
Over 60 years of existence, ITIs have given excellent technicians, mechanics, entrepreneurs and professional
leaders. Manufacturing sector is reservoir of this success. They have brought name and fame in the country
32

and abroad. It is proposed to compile these success stories and publish in print and electronic form. These
success stories shall be used for motivating youngsters and their parents. The successful ITI graduates are
also to be projected as National Brand Ambassadors of Vocational Training. This will be taken as
communicator and catalyst, taking the message of ITI vocational training to every section of society.
5.All India Skill Competition

The Ministry of labour conducts competitions to foster the healthy spirit of competitiveness among the
trainee Craftsmen/ Apprentices. Winning spirit brings pride to world of skills, improves changing work
habits to be more organized, goal setting to achieve goals, and simply performing higher quality work. They
are:
All India Skill Competition for Craftsmen among trainees admitted under Craftsmen Training Scheme
(CTS). It is conducted once in a year. On the basis of marks obtained in skill competition by trainees, the
award is given to BEST CRAFTSMAN-cash prize and merit certificate, BEST INSTITUTE – a merit
certificate and the BEST STATE –a shield.
All India Competition for Apprentices among trainees admitted under Apprenticeship Training Scheme
(ATS). It is conducted twice every year. The award is given to the BEST Apprentice- cash prize of Rs
50,000 and a merit certificate and Runner Up Apprentice- cash prize of Rs 25000 and merit certificate in
each Trade, and the BEST ESTABLISHMENT on all India basis- a trophy and certificate by President of
India.
Trade covered in Competition: Both the competitions are conducted in 15 trades i.e. Fitter, Turner,
Machinist, Welder (G&E), Mechanic (Motor Vehicle), Mechanic (Diesel), Instrument Mechanic,
Draughtsman (Mechanical), Draughtsman (Civil), Electrician, Electronic Mechanic, Cutting & Sewing,
Foundry Man, Computer Operator & Programming Assistant (COPA), and Refrigeration & Air
Conditioning Mechanic.
6.Launch of Apprenticeship Protsahan Yojna

The Apprentices Act 1961 was enacted for regulating the Apprenticeship Training Scheme in the industry
for imparting on-the-job training to apprentices. Presently, there are only 2.82 lakh apprentices undergoing
training against 4.9 lakh seats.
Apprenticeship Scheme has huge potential for training the large number of young person’s to make them
employable. Similar schemes have been highly successful in countries like Germany, China and Japan
where the number of apprentices are stated to be 3 million, 20 million and 10 million respectively.
Present framework tightly regulates the number of apprentices trade-wise, and is not attractive to youth
because of low rate of stipend. Further the industry is averse to participate because the scheme is not viable
for the small industries. There are a large number of establishments including MSMEs where training
facilities are available but could not be utilized so far.
33
INTERNATIONAL LABOUR ORGANISATION (ILO):

It is the only tripartite U.N. agency. It brings together governments, employers and workers of 187
member States, to set labour standards, develop policies and devise programmes promoting decent work for
all women and men.
(Tripartite principle, i.e. the negotiations within the organization are held between the representatives of
governments, trade unions, and member-states’ employers.)
Structure of ILO
The ILO accomplishes its work through three main bodies which comprise governments', employers' and
workers' representatives:
International Labour Conference: it sets the International labour standards and the broad policies of the
ILO. It meets annually in Geneva. It is often referred to as an International Parliament of Labour.
It is also a forum for discussion of key social and labour questions.
Governing Body: it is the executive council of the ILO. It meets three times a year in Geneva.
It takes policy decisions of ILO and establishes the programme and the budget, which it then submits to the
Conference for adoption.
The work of the Governing Body and the Office is aided by tripartite committees covering major industries.
It is also supported by committees of experts on such matters as vocational training, management
development, occupational safety and health, industrial relations, workers’ education, and special problems
of women and young workers.
International Labour Office: it is the permanent secretariat of the International Labour Organization.
It is the focal point for ILO’s overall activities, which it prepares under the scrutiny of the Governing Body
and under the leadership of the Director-General.
Regional meetings of the ILO member States are held periodically to examine matters of special interest to
the regions concerned.
The Functions of the ILO
• Creation of coordinated policies and programs, directed at solving social and labour issues.
• Adoption of international labour standards in the form of conventions and recommendations and
control over their implementation.
• Assistance to member-states in solving social and labour problems.
• Human rights protection (the right to work, freedom of association, collective negotiations,
protection against forced labour, protection against discrimination, etc.).
• Research and publication of works on social and labour issues.
Objectives of the ILO
• To promote and realize standards and fundamental principles and rights at work.
• To create greater opportunities for women and men to secure decent employment.
• To enhance the coverage and effectiveness of social protection for all.
• To strengthen tripartism and social dialogue.
34

Complaints
• The ILO registers complaints against entities that are violating international rules; however, it does
not impose sanctions on governments.
• Complaints can be filed against member states for not complying with ILO conventions they have
ratified.
• Complaints can be from another member state which has signed the same convention, a delegate to
the International Labour Conference or the ILO's Governing Body.
India and ILO:
India is a founding member of the ILO and it has been a permanent member of the ILO Governing Body
since 1922.
In India, the first ILO Office was started in 1928. The decades of productive partnership between the ILO
and its constituents has mutual trust and respect as underlying principles and is grounded in building
sustained institutional capacities and strengthening capacities of partners.
India has ratified six out of the eight-core/fundamental ILO conventions. These conventions are:
• Forced Labour Convention (No. 29)
• Abolition of Forced Labour Convention (No.105)
• Equal Remuneration Convention (No.100)
• Discrimination (Employment Occupation) Convention (No.111)
• Minimum Age Convention (No.138)
• Worst forms of Child Labour Convention (No.182)
All the best

JAI HIND
35

Class explanation- mind map
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India YEAR Book GO +

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

BASIS FOR ORGANISED SECTOR UNORGANISED SECTOR

Salary of workers As prescribed by the . Less than the salary

MINISTRY OF LABOUR AND EMPLOYMENT:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

LABOUR LAWS IN INDIA:

ORGANISED LABOUR LAWS:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Employee Pension Scheme,1952:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

National Pension system:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Models under NPS

Public Provident Fund:

Minimum Wage Act,1948:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Employment State Insurance Scheme:

Employees' State Insurance Act, 1948

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Maternity Benefit Amendment Act,2017:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Duration of the scheme:

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Under Terms of Occupation:

Unorganised Worker Social Security Act,2007:

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Labour laws: UPSC/EPFO Exam

Workers facilitation centres:

Eligibility for registration and social security benefits.

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

India YEAR Book GO +

Labour laws: UPSC/EPFO Exam

Draft Policy on Domestic Workers:

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Labour laws: UPSC/EPFO Exam

Pradhan Mantri Shram Yogi Maan-dhan:

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Atal Pension Yojana:

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Labour laws: UPSC/EPFO Exam

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Labour laws: UPSC/EPFO Exam

Prime Minister’s Employment Generation Program:

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OTHER LABOUR ACTS:

Child Labour (Prohibition and Regulation) Amendment Rules,2017:

India YEAR Book GO +