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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..