You are on page 1of 49

LABOUR LAW

Labour law (also called labour law or employment law) is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions, employers and employees.

1

A BRIEF CHECK LIST OF LABOUR LAWS

2

EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952

3

Applicability

Every establishment which is factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed. Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf.
4

5 . Any establishment employing even less than 20 persons can be covered voluntarily section1(4) of the Act.

16% 6 .Rates of Contribution SCHEME Provident Fund Scheme Insurance Scheme Pension Scheme EMPLOY EE’S 12% EMPLOY ER’S Amount > 8.5 8.33 0.33 CENTRAL GOVT’S Nil NIL NIL Nil 1.

@22% per annum Four months and above but less than upto six months ….@ 17% per annum Two months and above but less than upto four months ….@ 27% per annum    7 .Damages Less than 2 months ….

14).Penal Provision    Defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines upto Rs. For any retrospective application. all dues have to be paid by employer with damages upto 100% of arrears.000 (S. Gajender Sharma 8 . Dr.10.

1948 9 .FACTORIES ACT.

Sec. wherein Manufacturing process is being carried on.Applicability  Any premises whereon 10 or more persons with the aid of power or 20 or more workers are/were without aid of power working on any day preceding 12 months.2(ii) 10 .

6  11 .Registration & Renewal of Factories To be granted by Chief Inspector of Factories on submission of prescribed form. fee and plan. Secs.

Washing facilities. Canteens when there are 250 or more workers.Welfare Measures       Facilities for storing and drying clothing Facilities for sitting First-aid appliances – one first aid box not less than one for every 150 workers. 12 .

Creches when there are 30 or more women workers. Welfare office when there are 500 or more workers 13 .   Shelters. rest rooms and lunch rooms when there are 150 or more workers.

Weekly hours not more than 48. Intervals for rest at least ½ hour on working for 5 hours. not more than 9 hours. Spread Over & Overtime of Adults Daily hours.Working Hours. Spread over not more than 10½ hours.     14 .

59 & 60 15    . Overlapping shifts prohibited. 51. 54 to 56. Restrictions on employment of women before 6AM and beyond 7 PM. Secs. Extra wages for overtime double than normal rate of wages.

54 to 56. 51. 59 & 60 16 . certificate of fitness.g. and not permitted to work during night shift. Prohibition of employment of young children e.Employment of Young Persons  Non-adult workers to carry tokens e.   Secs. Working hours for children not more than 4 ½ hrs.g. 14 years.

INDUSTRIAL DISPUTES ACT. 1947 17 .

Object of the Act Provisions for investigation and settlement of industrial disputes and for certain other purposes. 18 .

covers from barber shops to big steel companies.4 Adjudication – Labour Court.2(I) Works Committee–Joint Committee with equal number of employers and employees’ representatives for discussion of certain common problems.7. Sec. Industry – has attained wider meaning than defined except for domestic employment. Secs.7A & 7B 19     .3 Conciliation–is an attempt by a third party in helping to settle the disputes Sec. Industrial Tribunal or National Tribunal to hear and decide the dispute. Sec.

 Breakdown of machinery.25-C  20 .Lay off & Payment of Compensation – Conditions for Laying off Failure. Sec. refusal or inability of an employer to provide work due to  Shortage of coal. power or raw material.  Natural calamity.  Accumulation of stocks.

25-M  21 .Prior Permission for Lay off When there are more than 100 workmen during proceeding 12 months. Sec.

Sec.25-C 22 .Lay off Compensation  Payment of wages except for intervening weekly holiday compensation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days in a year.

25-N 23 . Form QA Compensation @ 15 days’ wages. Three months’ notice or wages thereto. Sec.Prior Permission by the Government for Retrenchment      When there are more than 100 workmen during preceding 12 months.

    24 .Retrenchment of Workmen Compensation & Conditions   Workman must have worked for 240 days. Retrenchment compensation @ 15 days’ wages for every completed year to be calculated at last drawn wages One month’s notice or wages in lieu thereof. Sending Form P to Labour Authorities. Reasons for retrenchment Complying with principle of ‘last come first go’.

Right of a Workman during Pendency of Proceedings in High Court  Employer to pay last drawn wages to reinstated workman when proceedings challenging the award of his reinstatement are pending in the higher Courts. Sec.17B 25  .

11A 26 . Sec.Power of Labour Court to give Appropriate Relief Labour Court/Industrial Tribunal can Modify the punishment of dismissal or discharge of workmen and give appropriate relief including reinstatement.

Prohibition of unfair labour practice either by employer or workman or a trade union as stipulated in fifth schedule  Both the employer and the Union can be punished.25-T 27 . Sec.

25-O   28 .Closure of an Undertaking  60 days’ notice to the labour authorities for intended closure in Form QA. Sec. Sec.25FFA Prior permission atleast 90 days before in Form O by the Government when there are 100 or more workmen during preceding 12 months.

During the pendency of proceedings before a Labour Court.Prohibition of Strikes & Lock Outs  Without giving to the employer notice of strike.   Before the expiry of the date of strike specified in any such notice as aforesaid. 29  . Tribunal or National Tribunal and two months. Within fourteen days of giving such notice. as hereinafter provided. within six weeks before striking. after the conclusion of such proceedings.

ii) before a conciliation officer and seven days after the conclusion of such proceedings 30 .Prohibition of Strikes & Lock Outs  During the pendency of conciliation proceedings before: i) a Board and seven days after the conclusion of such proceedings.

22&23 31 . where a notification has been issued under Sub-Section(3A) of section 10A. Secs.Prohibition of Strikes & Lock Outs  During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings. During any period in which a settlement or award is in operation. in respect of any of the matters covered by the settlement or award.

18 32 ..   Otherwise than in course of settlement upon the parties to the settlement.Persons Bound by Settlement When in the course of conciliation proceedings etc. all persons working or joining subsequently. Sec.

Sec. An award for one year after its enforcement.Period of Operation of Settlements and Awards  A settlement for a period as agreed by the parties.19 33   . or Period of six months on signing of settlement.

1.1. iv) Giving financial aid to illegal strikes and lock-outs.000  Imprisonment up to 6 months or with fine.200 per day  Imprisonment upto 6 months or with fine upto 34 Rs.On continuity of offence fine up to Rs.  Imprisonment up to one month or with fine up to Rs.000  Imprisonment for 6 months or with fine up to Rs.1000 for lockout) or with both.Offence i) Punishments Imprisonment of up to 6 months or with fine up to Rs.50(Rs.000.  Imprisonment up to 6 months or with fine up to Rs.21 .000 Committing unfair labour practices ii) Illegal strike and lock-outs iii) Instigation etc.3. for illegal strike or lock-outs. vi) Breach of settlement or award vi) Disclosing confidential information pertaining to Sec.1.

33 pertaining to change of conditions of Service during pendency of dispute etc.5. Imprisonment upto 6 months or with fine upto Rs.25 FFA viii) Contravention of Sec.Offence  Punishment  vii) Closure without 60 days’ notice under Sec.000.100 35 .1.000 Imprisonment upto 6 months or fine upto Rs.    ix) When no penalty is provided for contravention  Fine upto Rs.

STANDING ORDERS ACT. 1946 & THE RULES 36 .

Applicability of the Act  Every industrial establishment wherein 100 or more 37 .

Matters to be provided in Standing orders  Classification of workmen. holidays.  38 .g. pay-days and wage rates. or badlis. probationers. temporary. Manner of intimating to workmen periods and hours of work. whether permanent..   Shift working. e. Attendance and late coming. apprentices.

Requirement to enter premises by certain gates. procedure in applying for. and temporary stoppages of work and the right and liabilities of the employer and workmen arising there from. and liability to search. Closing and re-opening of sections of the industrial establishments. and the authority which may grant. 39   . leave and holidays. Conditions of.

and the notice thereof to be given by employer and workmen.  Suspension or dismissal for misconduct. 40 . and acts or omissions which constitute misconduct. Termination of employment.

Secrecy. Exclusive service.Means of redressal for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants. Additional Matters  Service Record – Matters relating to service card.2(g). Secs.Medical Examination. change of residential address of workers and record of age Confirmation Age of retirement Transfer Medical aid in case of Accident . token tickets. 3(2) and Rule 2A 41  . certification of service.

At the rate of seventy-five percent of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is notdirectly attributable to the conduct such workman. Sec.Payment of Subsistence Allowance to the Suspended Workers  At the rate of fifty per cent. of the wages which the workman was entitled to immediately proceeding the date of such suspension. for the first ninety days of suspension.10-A 42  .

MINIMUM WAGES ACT. 1948 Object of the Act   To provide for fixing minimum rates of wages in certain employments 43 .

Sec. Variable DA and Value of other concessions etc. 4   44 .Minimum Rates of Wages Such as Basic rates of wages etc.

  45 . To make review at such intervals not exceeding five years the minimum rates or so fixed and revised the minimum rates.Fixation of Minimum Rates of Wages  The appropriate government to fix minimum rates of wages. Government can also fix Minimum Wages for Time work • Piece work at piece rate • Piece work for the purpose of securing to such employees on a time work basis • Overtime work done by employees for piece work or time rate workers.

Overtime To be fixed by the hour. 5 46 .   Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (1½ times or for agriculture labour) Sec. by the day or by such a longer wage period works on any day in excess of the number of hours constituting normal working day.

Fixing Hours for Normal Working  Shall constitute a normal working day inclusive of one or more specified intervals. 13 Dr..  To provide for a day of rest in every period of seven days with remuneration.. Gajender Sharma 47  . To provide for payment for work on a day of rest at a rate not less than the overtime rate. Sec.

18 48     . Wages slip–Form XI. Muster Roll–Form V Rule 26 Representation of register – for three year Rule 26-A Sec.Maintenance of registers and records  Register of Fines – Form I Rule 21(4) Annual Returns – Form III Rule 21 (4-A) Register for Overtime – Form IV Rule 25 Register of Wages–Form X.

Sec.500/-   49 .500/Imprisonment upto 6 months or with fine upto Rs.Offence  Punishment  For paying less than minimum rates of wages For contravention of any provisions pertaining to fixing hours for normal working day etc. 20 Imprisonment upto 6 months or with fine upto Rs.