Challenging Opportunities for PCS in Labour Laws 1

Introduction to Labour Law Frame Work

1.1. Brief Introduction

Labour laws are the one dealing with employment laws in any
organization – whether it is a manufacturing organization or
trading organization or shops and establishment. The labour laws
address the various administrative rulings (such as employment
standing orders) and procedure to be followed, compliance to
be made and it address the legal rights of, and restrictions on,
working people and their organizations. As such, the labour laws
mediate in many aspects of the relationship between trade
unions, employers and employees. In other words, Labour law
defines the rights and obligations as employees, union members
and employers in the workplace.
1.2. Coverage of labour laws
By and large the labour law covers the industrial relations,
certification of unions, labour management relations, collective
bargaining and unfair labour practices and very importantly the
workplace health and safety with good environmental conditions.
Further the labour laws also focus on employment standards,
including general holidays, annual leave, working hours, unfair
dismissals, minimum wage, layoff procedures and severance pay
and many other issues related to employer and employee and
the various compliance requirements.
1.3. Categories of labour laws
There are two broad categories of labour law. Firstly collective
labour law relates to the tripartite relationship between
employee, employer and union, and secondly individual labour
law concerning the employees' rights at work and through the
contract for work. The labour movement has been instrumental
in the enacting of laws protecting labour rights in the 19th and
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2 Challenging Opportunities for PCS in Labour Laws

20th centuries. Labour rights have been integral to the social

and economic development since the industrial revolution.
Under the Companies Act, 2013 the role of the company secretary
has been considerably widened in as much as now he is not only
responsible for the compliances under the company law but also
in respect of compliances under all other applicable laws. Section
205 of the Companies Act, 2013 while spelling out the functions
of company secretary clearly states that the functions of the
company secretary shall include(a) to report to the Board about
compliance with the provisions of this Act, the rules made there
under and other laws applicable to the company.
Obviously the labour laws deals with the employees – one of
the important factors of production acquires a significant place
while we talk about compliance.
1.4. Enacted by central government and sole responsibility of
enforcement by central government
Labour legislations when analyzed one could come to a clear cut
understanding that there are labour laws enacted by the Central
Government, where the Central Government has the sole
responsibility for enforcement as a first category. The following
are few labour legislations which fall in this category.
(1) The Employees’ State Insurance Act, 1948
(2) The Employees’ Provident Fund and Miscellaneous Provisions
Act,1952
(3) The Mines Act, 1952
The Iron Ore Mines, Manganese Ore Mines and Chrome Ore
Mines Labour Welfare (Cess) Act, 1976
(4) The Iron Ore Mines, Manganese Ore Mines and Chrome Ore
Mines Labor Welfare Fund Act, 1976
(5) The Mica Mines Labour Welfare Fund Act, 1946
(6) The Limestone and Dolomite Mines Labour Welfare Fund Act,
1972
(7) The Beedi Workers Welfare Cess Act, 1976
(8) The Cine Workers Welfare (Cess) Act, 1981
Challenging Opportunities for PCS in Labour Laws 3

(9) The Beedi Workers Welfare Fund Act, 1976

(10) The Cine Workers Welfare Fund Act, 1981
(11) The Dock Workers (Safety, Health and Welfare) Act, 1986
1.5. Enacted by central government and enforced by both central
and state government
When one moves further, it can be seen that labour laws enacted
by Central Government and enforced by Central and State
Governments both. The following are some of the examples of
such legislations.
(1) The Minimum Wages Act, 1948
(2) The Payment of Bonus Act, 1965
(3) The Payment of Gratuity Act, 1972
(4) The Payment of Wages Act, 1936
(5) The Maternity Benefit Act, 1961
(6) Dangerous Machines (Regulation) Act, 1983
(7) The Apprentices Act, 1961
(8) The Equal Remuneration Act, 1976.
(9) The Industrial Disputes Act, 1947
(10) The Industrial Employment (Standing Orders) Act, 1946.
(11) The Child Labour (Prohibition and Regulation) Act, 1986.
(12) Sales Promotion Employees Act, 1976
(13) Private Security Agencies (Regulation) Act, 2005
(14) The Contract Labour (Regulation and Abolition) Act, 1970
(15) The Building and Other Constructions Workers’ (Regulation
of Employment and Conditions of Service) Act, 1996
(16) The Building and Other Construction Workers Cess Act, 1996
(17) Unorganized Workers Social Security Act, 2008
(18) The Inter-State Migrant Workmen (Regulation of Employment
and Conditions of Service) Act, 1979
(19) The Labour Laws (Exemption from Furnishing Returns and
Maintaining Registers by Certain Establishments) Act, 1988
(20) The Cine Workers and Cinema Theatre Workers (Regulation
of Employment) Act, 1981
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(21) Working Journalists (Fixation of Rates of Wages) Act, 1958

(22) Merchant Shipping Act, 1958
(23) Dock Workers (Regulation of Employment) Act, 1948
(24) Dock Workers (Regulation of Employment) (Inapplicability to
Major Ports) Act, 1997.
1.6. Enacted by central government and enforced by state
government
When we move down further, it is seen that there are regulations
concerning labour laws enacted by Central Government and
enforced by the State Government. The following are the list of
such laws.
(1) The Factories Act, 1948
(2) The Weekly Holidays Act, 1942
(3) The Employees’ Compensation Act, 1923
(4) The Trade Unions Act, 1926
(5) The Motor Transport Workers Act, 1961
(6) The Employment Exchange (Compulsory Notification of
Vacancies) Act, 1959
(7) The Plantation Labour Act, 1951
(8) The Bonded Labour System (Abolition) Act, 1976
(9) The Beedi and Cigar Workers (Conditions of Employment)
Act, 1966
(10) The Personal Injuries (Compensation Insurance) Act, 1963
(11) The Personal Injuries (Emergency Provisions) Act, 1962
(12) The Sales Promotion Employees (Conditions of Service) Act,
1976
(13) The Working Journalists and Other Newspapers Employees
(Conditions of Service) and Miscellaneous Provisions Act,
1955
(14) The Children (Pledging of Labour) Act, 1938
(15) The Employers’ Liability Act, 1938
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1.7. Enacted by state government and enforced by state

government
Finally, there are labour laws enacted and enforced by the various
State Governments, which apply to respective States only.
Let us look at the labour laws of Madhya Pradesh – likewise
each state has got its own laws enacted and implemented.
Madhya Pradesh State Labour Laws
(1) Factories Act, 1948 and Madhya Pradesh Factories Rules,
1962
(2) Payment of Wages Act, 1936 and Madhya Pradesh Payment
of Wages Rules, 1962
(3) Madhya Pradesh Shops & Establishment Act, 1958
(4) Madhya Pradesh Industrial Relations Act, 1960
(5) Madhya Pradesh Industrial Relations Rules, 1961
(6) Madhya Pradesh Industrial Employment (Standing Orders)
Act, 1961
(7) Contract Labour (Regulation & Abolition) Act, 1970 and
Contract Labour (Regulation and Abolition) Madhya Pradesh
Rules,1973
(8) Workmen’s Compensation Act, 1923
(9) Workmen’s Compensation (Madhya Pradesh) Rules, 1962,
(10) Madhya Pradesh Workmen’s Compensation (Occupational
Diseases) Rules, 1963
(11) Workmen’s Compensation Act, 1923 and Workmen’s
Compensation (Madhya Pradesh) Rules
(12) The Inter-state Migrant Workmen (Regulation of Employment
and Conditions of Service) Act, 1979 and Inter- State Migrant
Workmen (Regulation of Employment and Conditions of
Service) M.P. Rule, 1981
(13) MP Labour Welfare Fund Act
(14) Maternity Benefit Act, 1961 and MP Maternity Benefit Rules
(15) Minimum Wages Act, 1948 and MP Minimum Wages Rules
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(16) Payment of Gratuity Act, 1972 and MP Payment of Gratuity

Rules
1.8. Purpose and objectives of labour laws
The labour laws are social, safety, protection of employees rights
and hence they deal with the payment of wages, industrial
relations, working hours, conditions of service and employment,
equality and empowerment of women, laws related to Deprived
and Disadvantaged Sections of the Society and as well laws
relating to society security.

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Opportunity for Practice

2.1. Functions of company secretary under Companies Act, 2013

Under the Companies Act, 2013, while spelling out the functions
of company secretaries for the first time in the history of the
Companies Act, the role of the company secretary has been
considerably widened in as much as now he is not only responsible
for the compliances under the Company law but also in respect
of compliances under all other applicable laws.
2.2. Available opportunities and scope
Here is the great opportunity for the practicing company secretaries
in assisting and helping the organizations to find out the number of
laws which are applicable to them at the first place. The companies
where no company secretary is required to be employed or company
secretary is not employed, the practicing company secretaries have
got a great opportunity to explore the areas of compliance in those
companies under various laws that are applicable – it is a vast scope
for the practicing secretaries since the laws are innumerable.
In this connection, if one asks a question to anyone including
company secretary in a company or a practicing professional as
to how many Acts/ laws are applicable to that company, by and
large one may not be able to get the exact number of laws/ Acts
applicable to that company. Laws are innumerable and none has
really got an idea as to how many laws would be applicable.
Laws are innumerable and one needs to be focused in ensuring
compliance.
2.3. Excelling in labour laws
If one desires to excel in the area of labour laws, ample
opportunities are thrown open to them since day in and day out
the employers are required to deal with the employee related
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issues and there are various compliances required to be done

either in the form of filing returns, making payments, maintaining
records and registers, complying with various conditions etc.
There is more scope in manufacturing units when compared to
the other sectors since the working conditions and safety is
involved significantly in manufacturing sectors and the
government is very much concerned about it. Even within the
manufacturing sector, certain specific industries are subjected
to stricter compliance failing which heavy penalties and
imprisonment would be involved to the level of directors and
senior management. For example, factories manufacturing
chemicals, hazardous chemical and dangerous chemicals are
subjected to severe compliance.
2.4. The landmark judgment on Factories Act by Supreme Court
In October 1996, the Supreme Court fixed the responsibility for
violations of the rules under the Factories Act, 1948 on a
nominated Director of a company and not on any of the employees
as some companies chose to do by appointing one of its
employees as "Occupier of the Factory". The Court's ruling in
the case of J K Industries Limited v. The Chief Inspector of Factories
and Boilers and others (1997) 1LLJSC 772 have far-reaching
consequences as the designated Director under the Factories
Act, 1948 will henceforth be liable for all the illegal acts of the
unit along with the Manager. Each of them is liable for offences
punishable with imprisonment or fine or with both (which may
extend to the extent of two years imprisonment or fine of Rs. 1
lakh or with both). The Apex Court, while delivering the judgment
made the following observations:
“The Legislature has attempted to plug the loopholes which
existed earlier and enable the Directors to escape their liability
by passing on the buck, as they say, to an employee. It is much
too obvious that when top persons of the company are made
conscious of their responsibility and duties for the
implementation of the safety and welfare measures in a factory
and to carry out the duties prescribed under the Act, at the pain
of punishment in case they choose to overlook, there are much
greater chances that proper care would be taken for maintenance