Labour Legislations

UNIIT-4
Labour Legislations Historical Perpectives

 The British enacted labour legislations so as to safeguard the British employers. This however
didn't benefit the workers as they were constantly subjected to inhumane treatment from their
employers in the form of problems as hours of work, wages, working conditions, trade unions,
industrial disputes etc.
 History. Indian labour law is closely connected to the Indian independence movement, and the
campaigns of passive resistance leading up to independence. While India was under colonial rule
by the British Raj, labour rights, trade unions, and freedom of association were all regulated by
the: Indian Slavery Act, 1843.

The basic subject matter of labour law can be considered under nine broad heads: employment;
individual employment relationships; wages and remuneration; conditions of work; health, safety,
and welfare; social security; trade unions and industrial relations; the administration of labour law
Impact Of ILO

 The main aims of the ILO are to promote rights at work, encourage decent employment
opportunities, enhance social protection and strengthen dialogue on work-related issues.
 ILO's current portfolio in India centers around child labour, preventing family
indebtedness employment, skills, integrated approaches for local socio-economic
development and livelihoods promotion, green jobs, value-addition into national
programmes, micro and small enterprises, social security,.
 The ILO's mission is to promote decent work for all workers. This is accomplished by
promoting social dialogue, protection, and employment generation. The ILO provides
technical support along with the support of development partners to multiple countries in
order to achieve this mission.
Indian Constitution Abolition of Bonded

 India Code: Bonded Labour System (Abolition) Act, 1976. Long Title: An Act to provide
for the abolition of bonded labour system with a view to preventing the economic and
physical exploitation of the weaker sections of the people and for matters connected
therewith or incidental thereto. Section 1.
 As per Article 23 of the Indian Constitution, traffic in human beings and other forms of
forced labour are prohibited. Based on this constitutional provision, the Government of
India passed The Bonded Labour System (Abolition) Act, 1976.
 The Amendment Act Inter alia provides for complete prohibition of work or employment
of children below 14 years in any occupation and process and prohibition of adolescents
in the age group of 14 to 18 years in hazardous occupations and processes.
Child-labour

 The term “child labour” is often defined as work that deprives children of their childhood,
their potential and their dignity, and that is harmful to physical and mental development.
It refers to work that: is mentally, physically, socially or morally dangerous and harmful
to children
 Child labour and exploitation are the results of many factors, including poverty, social
norms condoning them, lack of decent work opportunities for adults and adolescents,
migration and emergencies. These factors are not only the cause but also a consequence of
social inequities reinforced by discrimination.
 A child labour is person who has not completed his/her fourteen(14) years of age or such
age as may be prescribed in the Right of Children to free and Compulsory Education Act,
2009, whichever is more.
Payment of Wages Act

 ACT 4 OF 1936 The Payment of Wages Bill, 1935 having been passed by the Legislative
Assembly received its assent on 23rd April, 1936. It came on the Statute Book as THE
PAYMENT OF WAGES ACT, 1936 (4 of 1936). LIST OF AMENDING ACTS,
ORDINANCE AND ADAPTATION ORDERS 1.
 The employer or the person responsible for making the payment of wages must pay in
currency coins or currency notes or in both. Further, he cannot pay in kind. Also, the
employer can pay the wages via a cheque or a direct deposit to the bank account of the
employee after taking a written authorization from him.
 The Payment of Wages Act, 1936 was enacted with the object of (i) regulating payment of
wages, imposition of fines and deductions from wages, and (ii) eliminating all
malpractices by laying down wage periods and time and mode of payment of wages.
Workermen’s Compensation Act

 The Workmen's Compensation Act, 1923 was made to offer compensation to the workers
who have encountered injuries due to an accident during their employment. This act
ensures that rights of the laborers are maintained even after they encounter some
disability or death due to an accident during their work.
 The Workmen's Compensation Act, 1923, aims to provide workmen and/or their
dependents some relief in case of accidents arising out of and in the course of
employment and causing either death or disablement of workmen.
 There is no age limit for a person to be employed as an employee under the Workmen's
Compensation Act, though Article of the Constitution of India, employment of child
labour before 14 years in any factory or mine or any hazardous employment.
Employee’s State Insurance Act

 [19th April, 1948. An Act to provide for certain benefits to employees in case of sickness,
maternity and ' employment injury ' and to make provision for certain other matters in
relation thereto.
 All the establishments covered under the ESI Act and all factories that employ more than
10 employees and pay wages below or upto Rs. 21,000 per month (Rs. 25,000 for
employees with disability) must register with the ESIC and contribute towards the ESI
scheme
 All the establishments covered under the ESI Act and all factories that employ more than
10 employees and pay wages below or upto Rs. 21,000 per month (Rs. 25,000 for
employees with disability) must register with the ESIC and contribute towards the ESI
scheme
Payment of Gratuity Act

 The Act provides for payment of gratuity at the rate of 15 days wage s for each completed
year of service subject to a maximum of Rs. ten lakh. In the case of seasonal
establishment, gratuity is payable at the rate of seven days wages for each season.
 Employees have to complete 5 years of service to be eligible – To meet the gratuity
eligibility criteria, an employee has to render his/her services for 5 continuous years.
However, this condition is not taken into consideration in situations of demise or
disablement of an employee.
 As per the new rule of gratuity, every year of service, an employee is entitled to 15 days
of pay as gratuity. The company is required to pay an amount equal to 15 days of the
employee's most recent wage as part of the gratuity for each year of service.
Employee’s Provident Fund Act

 The Employees' Provident Funds Bill was introduced in the Parliament as Bill Number 15
of the year 1952 as a Bill to provide for the institution of provident funds for employees
in factories and other establishments.
 ACT NO. 19 OF 19521. [4th March, 1952.] An Act to provide for the institution of
provident funds 2[,3[pension fund] and deposit-linked insurance fund] for employees in
factories and other establishments.
 A monthly salary contribution of 12% is made to the Employee Provident Fund (EPF) by
both the employee and the employer. Employees are not obligated to match employer
contributions of up to 12% of their income, although they are able to do so voluntarily.
Important Provission of Industrial Dispute Act

 Prevent illegal strikes and lockouts. Reach out to workers who have been laid off, unfairly
terminated, etc. Give workers the right to collective bargaining and encourage
conciliation.
 2 (k) Industrial Dispute is “any dispute of difference between employers and employers or
between employers and workmen; or between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or with
the conditions of labour of any person.”
 1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or
where the dispute relates to a public utility service and a notice under section 22 has been
given, shall hold conciliation proceedings in the prescribed manner.
Factories Act

 An Act to consolidate and amend the law regulating labour in factories. WHEREAS it is
expedient to consolidate and amend the law regulating labour in factories; It is hereby
enacted as follows:— CHAPTER I PRELIMINARY 1. Short title, extent and
commencement.—(1) This Act may be called the Factories Act, 1948.
 The main objectives of the Indian Factories Act, 1948 are to regulate the working
conditions in factories, to regulate health, safety welfare, and annual leave and enact
special provision in respect of young persons, women and children who work in the
factories.
 The Factories Act is the principal legislation, which governs the health, safety, and
welfare of workers in factories. The Act extends to the whole of India. Mines and
Railways workers are not included as they are covered by separate Acts.
 The first Factories Act was adopted in the year 1881. Following this Act, a Factory
Commission was appointed in the year 1885. The basic purpose of this Act was to reduce
the factory working hours and to improve the condition of workers in a factory.