Labour Legislation[1] (H.R.M)

8/9/2019 Labour Legislation[1] (H.R.M)

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Labour legislations in INDIALabour legislations in INDIA

By

KARAN VEER SINGH

Lovely School of Management

Lovely Professional University


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Origins of Labor LegislationsOrigins of Labor Legislations

Labor laws emerged when the employers tried to

restrict the powers of workers' organizations and

keep labor costs low. The workers began

demanding better conditions and the right to

organize so as to improve their standard of

living.


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Laws related to

working

conditions,

safety, health,

and environment

Laws related

to Wages and

Reward

Laws related to

Industrial

Relations

Laws related to

Social Securities

Laws related

to Equality

and

Empowermen

t of Women

The Factory Act,

1948

The Payment

of Wages Act,1936

The

Minimum

Wages Act,

1948

The Payment

of Bonus Act,

1965

The Trade

Unions Act,1926

The Industrial

Disputes Act,

1947

The Workmens

Compensation Act,1923

The Employees

State Insurance Act,

1948

The Employees

Provident Fund &

Miscellaneous

Provisions Act,

1952

The Payment of

Gratuity Act, 1972

The Maternity

Benefit Act,1961

The Equal

Remuneration

Act, 1976


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The Factories Act, 1948The Factories Act, 1948

A social legislation which has been enacted for

occupational safety, health and welfare of workers at

work places. Being enforced by technical officers i.e. Inspectors of

Factories, Dy. Chief Inspectors of Factories who work

under the control of the Chief Inspector of Factories and

overall control of the Labour Commissioner,

Government of National Capital Territory of Delhi


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ApplicabilityApplicability

Any premises in which ten (10) or more than ten

workers are employed on any day of the

preceeding twelve months - engaged in

manufacturing process being carried out with the

aid of power or twenty or more than twenty

workers employed in manufacturing processbeing carried out without the aid of power.


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Salient featuresSalient features1. Approval of Factory Building Plans before

construction/extension, under the Delhi Factories Rules,1950

2. Grant of Licences under the Delhi Factories Rules, 1950,and to take action against factories running without

obtaining Licence.3. Renewal of Licences granted under the Delhi Factories

Rules, 1950, by the Dy. Chief Inspectors of Factories

4. Inspections of factories by District Inspectors ofFactories, for investigation of complaints, serious/fatalaccidents as well inspections to check compliance ofprovisions of this Act relating to :-Health, Safety, Welfare facilities, Working hours,Employment of young persons and annual Leave withwages etc.


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The Payment of Wages Act, 1936The Payment of Wages Act, 1936

Objectives

To ensure regular and prompt payment of wages

and to prevent the exploitation of a wage earner

by prohibiting arbitrary fines and deductions

from his wages.


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Scope and coverageScope and coverage- Application for payment of wages to personsemployed in any factory.

- Not applicable to wages which average Rs 1600/- permonth or more.

- Wages include all remuneration, bonus, or sumspayable for termination of service, but do not includehouse rent reimbursement, light vehicle charges,medical expenses, TA, etc.


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Minimum Wages Act, 1948Minimum Wages Act, 1948 A tripartite Committee Viz.,"The Committee on Fair Wage" was

set up in 1948 to provide guidelines for wage structures in thecountry. The report of this Committee was a major landmark in

the history of formulation of wage policy in India. Itsrecommendations set out the key concepts of the `living wage',"minimum wages" and "fair wage" besides setting out guidelinesfor wage fixation.

Article 39|- The State shall, in particular, direct its policy towardssecuring (a) that the citizen, men and women equally shall havethe right to an adequate livelihood and (b) that there is equal payfor equal work for both men and women.


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Article 43 |- The State shall endeavor, by suitable

legislation or economic organization or in any

other way, to give all workers, agricultural,

industrial or otherwise, work, a living wage,

conditions of work ensuring a decent standard of

life and full enjoyment of leisure, and social andcultural opportunities.


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The Payment of Bonus Act, 1965The Payment of Bonus Act, 1965 Applicability

(a) Every factory (as def. in Factories Act), & (b) Everyother establishment in which 20 or more persons (lessthan 20 but 10 or more if appropriate Govt. notifies) areemployed on any day subject to certain exemptions.ii) Employees' drawing remuneration of Rs. 3,500/- ormore and those who have worked for less than 30 daysare not eligible to receive bonus under the Act.iii) Bonus to be paid within eight months from theexpiry of the accounting year.


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BenefitsBenefits

i) Subject to other provisions : Minimum bonus

shall be 8.33% of salary/wages earned or RS 100

whichever is higher.

Ii) If allocable surplus exceeds the amount of

minimum bonus, then bonus shall be payable at

higher rate subject to a maximum 20% ofsalary/wages.

Iii) Computation of bonus is to be worked out as

per Schedule I to IV of the Act.


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The Employees State Insurance Act,The Employees State Insurance Act,

19481948 Provides for certain benefits to employees in case of

sickness, maternity and employment injury.

It applies to all factories (including Governmentfactories but excluding seasonal factories) employing

ten or more persons and carrying on a manufacturing

process with the aid of power or employing 20 or more

persons and carrying on a manufacturing processwithout the aid of power


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Act does not apply toAct does not apply to

Factories working with the aid of power wherein less

than 10 persons are employed;

Factories working without the aid of power wherein lessthan 20 persons are employed;

Seasonal factories engaged exclusively in any of the

following activities viz. Cotton ginning, cotton or jute

pressing, decortication of groundnuts, the manufacture

of coffee, rubber, sugar (including gur) or tea


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BenefitsBenefits Medical benefits FULLMEDICAL CARE consists of hospitalization

facilities -includes specialist services, drugs and dressings and diets asrequired for in-patients.

Sickness benefit is roughly 50% of the average daily wages and is

payable for 91 days during 2 consecutive benefit periods. Maternity Benefit is payable to an Insured Woman in the following

cases subject to contributory conditions:-

Confinement-payable for a period of 12 weeks (84 days) anti-natal 6weeks & post natal 6 weeks restricted to 2 children

Dependents benefit

Accident Benefit

Funeral expenses


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Coverage and contributionCoverage and contribution

The existing wage-limit for coverage under the

Act, is Rs.10,000/- per month (with effect from

1.10.2006).

Currently, the employees contribution rate

(w.e.f. 1.1.97) is 1.75% of the wages and that of

employers is 4.75% of the wages paid/payablein respect of the employees in every wage period


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The Workmens Compensation Act, 1923The Workmens Compensation Act, 1923

The Workmens Compensation Act, aims toprovide workmen and/or their dependents some

relief in case of accidents arising out of and inthe course of employment and causing eitherdeath or disablement of workmen.

It provides for payment by certain classes ofemployers to their workmen compensation forinjury by accident.


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Employers liabilityEmployers liability

The employer of any establishment covered under this

Act, is required to compensate an employee :

Who has suffered an accident arising out of and in the

course of his employment, resulting into (i) death, (ii)

permanent total disablement, (iii) permanent partial

disablement, or (iv) temporary disablement whethertotal or partial, or

Who has contracted an occupational disease


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THE EMPLOYER SHALL NOT BETHE EMPLOYER SHALL NOT BE

LIABLELIABLE In respect of any injury which does not result in the total or

partial disablement of the workmen for a period exceedingthree days;

In respect of any injury not resulting in death, caused by anaccident which is directly attributable to-

the workmen having been at the time thereof under theinfluence or drugs, or

the willful disobedience of the workman to an orderexpressly given, or to a rule expressly framed, for the

purpose of securing the safety of workmen


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The Industrial Disputes Act, 1947The Industrial Disputes Act, 1947

Industry" means any systematic activity carriedon by co-operation between an employer and his

workmen (whether such workmen are employedby such employer directly or by or through anyagency, including a contractor) for theproduction, supply or distribution of goods or

services with a view to satisfy human wants orwishes (not being wants or wishes which aremerely spiritual or religious in nature)


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LayLay--offoff

lay-off" means the failure, refusal or inability ofan employer on account of shortage of coal,

power or raw materials or the accumulation ofstocks or the break-down of machinery or naturalcalamity or for any other connected reason togive employment to a workman whose name is

borne on the muster-rolls of his industrialestablishment and who has not been retrenched;


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LockLock--outout

"lock-out" means the temporary closing of a

place of employment or the suspension of work,

or the refusal by an employer to continue toemploy any number of persons employed by

him;


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Retrenchment" means the termination by the employerof the service of a workman for any reason whatsoever,

otherwise than as a punishment inflicted by way ofdisciplinary action, but does not include - (a) voluntaryretirement of the workman; or

retirement of the workman on reaching the age ofsuperannuating

termination of the service of a workman on the groundof continued ill-health;


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StrikeStrike Sec 2q of ID Act combination of persons indulging in

concerted action in stoppage of work or makinghindrance to the normalcy of the organization.

Illegal strikes and lockouts strikes as weapons in thehands of trade union/work force and lockouts in thehands of employers / management

Strikes without due notice to the employer

(with in 14 days of the notice) or during the pendancy ofproceedings before labour dept - same is applicable tolockouts


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The Gratuity Act,1972The Gratuity Act,1972 The Act provides for the payment of gratuity to workers

employed in every factory, shop & establishments or

educational institution employing 10 or more persons onany day of the proceeding 12 months. A shop or

establishment to which the Act has become applicable

shall continue to be governed by the Act even if the

number of persons employed falls bellow 10 at anysubsequent stage.


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All the employees irrespective of status or salary areentitled to the payment of gratuity on completion of 5

years of service. In case of death or disablement there

is no minimum eligibility period. The amount of

gratuity payable shall be at the rate of 17 days wagesbased on the rate of wages last drawn, for every

completed year of service. The maximum amount of

gratuity payable is Rs. 3,50,000/-.

Formula is - Last Wages *15*No. of services/26


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The Employees Provident Fund &The Employees Provident Fund &

Miscellaneous Provisions Act, 1952Miscellaneous Provisions Act, 1952

Applicability

i) Every establishment which is a factory engaged in any industry

specified in Schedule 1 and in which 20 or more persons areemployed and

ii) Any other establishment employing 20 or more persons whichentral Government may, by notification, specify in this behalf.(Infancy period of 3 years has been withdrawn by ordinance

w.e.f.22-9-97) iii) any establishment employing even less than 20 persons can be

covered voluntarily u/s 1(4) of the Act.


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EligibilityEligibility

Any person who is employed for work of an

establishment or employed through contractor in

or in connection with the work of anestablishment.


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BenefitsBenefits

Employees covered enjoy a benefit of SocialSecurity in the form of an unattachable,

unwithdrawable (except employees andemployers contribute equally throughout thecovered persons employment. This sum ispayable normally on retirement or death. Other

Benefits include Employees Pension Schemeand Employees Deposit Linked insurance Fund.


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TheMaternity Benefit Act, 1961TheMaternity Benefit Act, 1961 OBJECT:To regulate the employment of women in certain

establishments for certain periods before and after childbirthand to provide for maternity benefits and certain other

benefits. APPLICABILITY:It extends to the whole of India and

applies to i) every factory, mine, plantations, establishmentsfor the exhibition of equestrain,acrobatic and other

performances.

to every shop or establishments defined under any lawapplicable to such establishments in a state in which personsare employed on any day of the preceding twelve months.


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PROH

IBIT

ED PERIO

DO

F EM

PLOY

EM

ENT

O

RWORK: The employment of women, or work by women inany establishment during the six weeks immediately followingthe day of her delivery or her miscarriage (section-4).

PAYMENTOF MATERNITY BENEFIT: Every women

shall be entitled to, and her employer shall be liable for, thepayment of maternity benefit at the rate of average

daily wage for the period of her actual absence, and any periodof her actual absence, and any period immediately followingthe date of delivery and including the actual day for her

delivery (Section 5). In addition to the maternity benefit,every women shall also be entitled to receive a medical bonusof Rs.250/- if no prenatal confinement and post natal care is

provided free of charge (section-8)


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ELIGIBILITY FORMATERNITYBENEFIT:

A women shall be entitled to maternity benefit

only if she has actually worked in anestablishment of the employer for a period of

not less then eighty days in the twelve months

immediately proceeding the date of her

expected delivery (section-5[2])


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MAXI

MUM

PERIO

DO

FM

AT

ERNITY

BENEFIT:

Maximum twelve weeks of which not more then six weeksshall proceed the date of her expected delivery (section- 5[5])

OTHER BENEFITS:Act also provides provisions for leavefor miscarriage, leave for illness arising out of pregnancy or

delivery, premature birth of child or miscarriage and nursingbreaks for nursing the child until the child attained the age of15 months (section-9,10 & 11)

DISMISSAL, DEDUCTION WAGES, ETC:No employershall discharge or dismiss a women for her absence form work

in accordance with the provisions of this Act and no deductionshall be made from the normal; and usual daily wages of awomen entitled to maternity benefits. (section 12&13).


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Thank u !!!Thank u !!!


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Collective BargainingCollective Bargaining

The act of negotiating contract terms between an

employer and the members of a union.

Collective Bargaining Agreement the resulting

contract from a collective bargaining procedure.

The employer and the union must bargain with

each other ingoodfaith.


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Subjects of Collective BargainingSubjects of Collective Bargaining

Compulsory Subjects

Wages Hours

Other terms and conditions of employment

Illegal Subjects Closed shops

Discrimination


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CheckCheck--Off ProvisionOff Provision

Upon proper notification by the union, union

shop and agency shop employers are requiredto:

1. Deduct union dues and agency fees from

employees wages, and

2. Forward these dues to the union.

This is called a check-off provision.


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StrikesStrikes

the union call a strike if a collective bargaining

agreement cannot be reached.

A majority vote of the unions members must

agree to the action before there can be a strike.


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Crossover WorkerCrossover Worker

Individual members of a union do not have to

honor the strike.

They may:

1. Choose not to strike, or

2. Return to work after joining the strikers for a time


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Replacement WorkersReplacement Workers

Workers who are hired to take the place of

striking workers.

They can be hired on either a temporary orpermanent basis.

If replacement workers are given permanent

status, they do not have to be dismissed when the

strike is over.


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Illegal StrikesIllegal Strikes

Several types of strikes have been held to be

illegal.

They are not protected by federal labor law. Illegal strikers may be discharged by the

employer with no rights to reinstatement.


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Employer LockoutEmployer Lockout

Act of the employer to preventAct of the employer to preventemployees from entering the workemployees from entering the work

premises when the employerpremises when the employer

reasonably anticipates a strikereasonably anticipates a strike..

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Labour Legislation[1] (H.R.M)

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