ByRajneesh

IMPORTANT LABOUR LAWS

1) The Industrial Disputes Act, 1947; 2) The Factories Act, 1948; 3) Shops and sta!lish"ent Acts o# $arious states; 4) The %ontract &a!our '(e)ulation and A!olition) Act, 197*; +) The Trade ,nions Act, 192-; -) The .or/"en0s %o"pensation Act, 1923; 7) The "plo1ees0 2ro$ident Funds and 3iscellaneous 2ro$isions Act, 19+2;

Defining WORKMAN & NONWORKMAN

1) 4roadl1, there are t5o "ain cate)ories i6e6 unor)ani7ed sector and or)ani7ed sector6 2) ,nor)ani7ed sector includes s"all esta!lish"ents and e"plo1"ent relationships o# irre)ular duration and not re)ulated !1 an1 o# the la!our la5s6 For e6)6 Artisans, pett1 shop/eepers, ha5/ers etc6 3) 8r)ani7ed sector is identi#ied !1 speci#ied9#i:ed operatin) conditions laid do5n !1 $arious la!our la56 4) .or/"an deri$es certain ri)hts and !ene#its #ro" the $arious la!our and industrial la5s in India6 +) ;on<5or/"an is de#ined as e"plo1ees carr1in) out "ana)erial and ad"inistrati$e 5or/ and their ter"s o# e"plo1"ent is essentiall1 deri$ed #ro" the contract dra5n up !et5een the %o"pan16

Does it apply to NonWorkmen =

1) 2ri"aril1, none o# the &a!our &a5s appl1 to non< 5or/"en and ser$ice condition o# such e"plo1ees are )o$erned !1 the respecti$e contracts and )eneral ser$ice conditions 'i# e:istin))6 2) In case o# ter"ination, courts cannot reinstate the "plo1ee6 3) "plo1ee onl1 has recourse #or da"a)es6

4) %ourts in India are conser$ati$e in a5ardin) da"a)es and puniti$e da"a)es are rarel1 a5arded6

THE INDUSTRIAL DISPUTES A T! "#$% &IDA'

1) IDA < is an Act to "a/e pro$ision and settle"ent o# Industrial Disputes 5ith the o!>ecti$e to "aintain industrial peace and econo"ic >ustice6 2) IDA cate)ories e"plo1ees into 5or/"an and non<5or/"an6 3) Section 2 's) o# IDA de#ines 5or/"an6 4) ?.or/"an@ "eans an1 person e"plo1ed in an1 industr1 to carr1 out "anual, s/illed and uns/illed, technical, operational, clerical or super$isor1 5or/ #or hire or re5ard6 +) The de#inition speci#icall1 e:cludes A persons e"plo1ed in "ana)erial or ad"inistrati$e capacit1 and also those persons 'other5ise #allin) 5ithin the de#inition o# 5or/"an) 5ho are e"plo1ed in super$isor1 capacit1 at 5a)es "ore than (s61,-**9< per "onth ',S B 37) and sales pro"otion e"plo1ees 6

1) An Act to provide for the payment by certain classes of employers to the workmen of compensation for injury by accident. 2) "plo1er is lia!le to pa1 co"pensation to the e"plo1ee in case o# in>ur1 arisin) out o# and in the course o# his e"plo1"ent6

THE W(R)*EN+S (*PENSATI(N A T! "#,-

3) The lia!ilit1 to pa1 co"pensation is independent o# an1 ne)lect or 5ron)#ul act o# the e"plo1ee6 4) This lia!ilit1 sprin)s out o# relationship o# "aster and ser$ant6 It is not a lia!ilit1 5hich arises out o# tort6 +) Co5e$er, e"plo1er shall not !e lia!le i# in>ur1 does not e:ceed 3 da1s or the 5or/"en 5as under in#luence o# dru)s9alcohol, 5ill#ul diso!edience o# rules and sa#et1 )uards6 Co5e$er, these li"itations not applica!le in case o# death o# the e"plo1ee6 -) .or/"en shall !e dee"ed to ha$e !een in>ured in case o# contractin) occupational disease in the course o# his e"plo1"ent6 7) The Schedules under the Act detail the a"ount o# co"pensation #or di##erent t1pe o# in>uries6 8) 2ro$ides #or one<ti"e pa1"ents in case o# death and in case o# per"anent disa!le"ent, co"pensation is "ade dependin) on the percenta)e o# loss o# earnin) capacit16 9) 8nce an e"plo1ee elects to #ile proceedin)s under this Act he cannot #ile ci$il suit #or

TRADE UNI(NS A T! "#,.

1) This Act pro$ides #or the re)istration o# Trade ,nions and in certain respects to de#ine the la5 relatin) to re)istered Trade ,nions 2) Se$en or "ore persons can )et to)ether to #or" a Trade ,nion6 3) In order #or the Trade ,nion to re)ister it has to ha$e at least ten percent or one hundred o# the 5or/"en 5hich e$er is less as its "e"!ers6 4) Section 9 < 8n re)istration the (e)istrar 5ill issue a %erti#icate o# (e)istration6 +) Section 19 A a)ree"ent !et5een "e"!ers 5ill not !e $oid or $oida!le "erel1 !1 reason that the o!>ect o# the a)ree"ent

Prote/tion o0 ser1i/e /on2itions

A #eature o# the IDA is the stipulation that e:istin) s er$ice conditions cannot !eunilaterall1 altered 5ithout )i$in) a notice o# 21 da1s to the 5or/ers and the union6Si"ilarl1 i# an industrial dispute is pendin) !e#ore an authorit1 under the IDA, then thepre$ious ser$ice conditions in respect o# that di spute cannot !e altered to thedisad$anta)e o# the 5or/ers 5ithout prior per"ission o# the authorit1 concerned6

Re o!a" fro

ser!i#e

A per"anent 5or/er can !e re"o$ed #ro" ser$ice onl1 #or pro$en "isconduct or #or ha!itual a!sence A due to ill health, alcoholis" and the li/e, or on attainin) retire"enta)e6 In other 5ords the doctrine o# Dhire and #ire0 is not appro$ed 5ithin the e:istin)le)al #ra"e5or/6 In cases o# "isconduct the 5or/er is entitled to the protection o# Standin) 8rders to !e #ra"ed !1 a certi#1in) o##icer o# the la!our depart"ent a#ter hearin) "ana)e"ent and la!our, throu)h the trad e union

Retirement 3ene0it4
There are t5o t1pes o# retire"ent !ene#it )enerall1 a$aila!le to 5or/ers6 8ne is under the 2a1"ent o# Eratuit1 Act and the other is under the 2ro$ident Fund Act6 In the #irstcase a 5or/er 5ho has put in not less than #i$e 1ears o# 5or/ is entitled to a lu"p su"pa1"ent eFual to 1+ da1s0 5a)es #or e$er1 co"pleted 1ear o# ser$ice6 $er1 "onth thee"plo1er is e:pected to contri!ute the reFuired "one1 into a separate #und to ena!lethis pa1"ent on retire"ent or ter"ination o# e"plo1"ent6

5A T(RIES A T ! "#$6
1) "plo1ers are reFuired to #ollo5 strin)ent licensin) and sa#et1 "easures6 2) Factor1 is de#ined as a place 5here D"anu#acturin) process0 is carried out usin) 1* 5or/ers usin) electrical po5er or 2* 5or/ers 5ithout po5er6 3) D3anu#acturin) process0 also includes petrol pu"ps, retail 5or/shops, handicra#t industries etc6 4) 2ost 4hopal tra)ed1 ',nion %ar!ide case) special chapter 'IGA) has !een added "a/in) disclosures "andator1 #or ha7ardous processes6 +) The 5or/in) hours, lea$e , 5ee/l1 da1s o## and 5a)es are si"ilar to Shop and sta!lish"ent Acts< this is discussed later herein6 -) ,nder the Act the ?occupier ? is responsi!le #or all co"pliances and in the case o# an incorporated co"pan1 the Director on the !oard o# the co"pan1 "ust !e desi)nated #or the purpose o# an ?occupier@6

SH(PS AND ESTABLISH*ENT A T 1) In India "ost States ha$e a le)islation 'Shop and sta!lish"ents Act) in place
5hich re)ulate aspects such as 5or/in) hours, lea$e 5ith pa1, o$erti"e etc6 2) Shop and sta!lish"ents Act appl1 to shops, co""ercial esta!lish"ents, !an/s, insurance co"panies, hotels, restaurants, so#t5are co"panies and other ser$ice pro$iders6 Co5e$er, the1 do not appl1 to #actories as Factories Act, 1948 )o$erns that conditions6 3) The esta!lish"ent are reFuired to re)ister in each cit1 under the Act6 So"e o# the salient #eatures is discussed herein o# 4o"!a1 Shop and sta!lish"ent Act, 1948 '?4SA@) 5hich are a/in to the enact"ent o# other States6 4) .or/in) hours #or 48 hours per 5ee/ spread o$er - da1s is per"itted6 8$erti"e pa1"ent is "ade at the dou!le nor"al hourl1 rate6 +) "plo1ee 5ho has 5or/ed "ini"u" 24* da1s 5ill !eco"e eli)i!le #or 21 da1s paid lea$e and e"plo1ee is not allo5ed to accu"ulate "ore than 42 da1s lea$e6

-) 4SA also has pro$isions re)ardin) toilets, h1)iene etc6 and "a/es pro$isions #or "aternit1 !ene#its etc6
7)

1) An Act to re)ulate e"plo1"ent o# contract la!our in certain esta!lish"ents and to pro$ide #or its a!olition in certain circu"stances and #or "atters connected there5ith 2) Allo5s "plo1ers 'principal "plo1ers) to use %ontractors #or suppl1 o# la!our6 3) It applies to esta!lish"ents e"plo1in) t5ent1 or "ore persons6 4) It does not appl1 to esta!lish"ents 5here nature o# 5or/ is inter"ittent or casual6 +) 2rincipal "plo1er as 5ell as the %ontractor ha$e to re)ister the"sel$es6 -) entral and State 4oard can prohi!it e"plo1"ent o# contract la!our in an1 process, operation and esta!lish"ent< i# it is o# the $ie5 that it is perennial in nature, the 5or/ can !e carried out !1 re)ular 5or/"en6
7)

THE (NTRA T LAB(UR &RE7ULATI(N AND AB(LITI(N' A T! "#%8

%8;TDHH6
-) 7) The %ontractor has to pro$ide a"enities and #acilities 5hich include canteens, rest<roo"s, #irst<aid #acilities etc6 In case the %ontractor #ails to pro$ide the #acilities the 2rincipal "plo1er 5ill ha$e to pro$ide the sa"e and ad>ust and reco$er the e:pense #ro" the %ontractor6

8) !oth the 2rincipal "plo1er and the %ontractor ha$e to "aintain (e)isters and (ecords o# the %ontract &a!our e"plo1ed6

S( IAL SE URIT9 LE7ISLATI(NS

1) 2) 3) 4) +) -) The "plo1ees0 2ro$ident Funds and 3iscellaneous 2ro$isions Act, 19+2 ' 2FA)6 2FA applies to esta!lish"ents and #actor1 e"plo1in) 2* or "ore persons6 "plo1ee dra5in) salar1 upto (s6-,+**9< ',S B 1+*) per "onth has to !eco"e "e"!er o# the pro$ident #und6 2FA in pro$ident #und sche"e pro$ides 5herein 12I is contri!uted !1 !oth the e"plo1ee and the e"plo1er 5ith ad"inistration char)e o# 16+I6 In 2ension9Superannuation #und sche"e a part o# the contri!ution to the pro$ident #und '8633I) is di$erted to this sche"e6 The Deposit &in/ed Insurance Fund Sche"e is #or pro$idin) &i#e Insurance !ene#its6 The e"plo1er contri!utes *6+I and *6*1I to5ards ad"inistrati$e cost o# the !asic 5a)es6

(NTD::
1) 2) 3) 4) +) -) 7) 8) The 2a1"ent o# Eratuit1 Act, 1972 It applies to #actories, "ine, oil#ield, plantation, port , rail5a1, Shops and sta!lish"ents e"plo1in) ten or "ore persons6 Applica!le to e"plo1ees 5ho ha$e rendered continuous ser$ice #or #i$e 1ears6 "plo1ees 5ith less than #i$e 1ears 5ill !e entitled in case o# death or disa!le"ent6 "plo1er has to pa1 5ithin 3* da1s #ro" the date it !eco"es pa1a!le to the e"plo1ee6 Total a"ount o# )ratuit1 pa1a!le shall not e:ceed (s63,+*,***9< ',S B 77+) unless there is a contract to the contrar16 %o"pulsor1 insurance is necessar1 to5ards )ratuit1 #ro" &i#e Insurance %orporation, unless e"plo1er e:e"pted #ro" the Eo$ern"ent6 Eratuit1 is calculated at the rate o# 1+ da1s 5a)es #or e$er1 co"pleted 1ear o# ser$ice or a part thereo# e:ceedin) si: "onths6

The Employees+ State Ins;ran/e A/t! "#$6

1) The contri!ution under this Act o# an e"plo1ee co"prises o# contri!ution pa1a!le !1 the e"plo1er and the e"plo1ee6 2) 2resentl1 e$er1 insured e"plo1ee and his e"plo1er ha$e to pa1 the "plo1ees State Insurance %orporation at the rate o# 167+I and 467+I respecti$el1 o# the 5a)e o# the e"plo1ee6 3) ,nder the Act, the e"plo1er is lia!le to pa1 co"pensation to 5or/"en incapacitated due to an accident arisin) out and in the course o# e"plo1"ent6

<(LUNTAR9 RETIRE*ENT S HE*E &<RS'

1) G(S is also popularl1 /no5n as D)olden handsha/e06 2) Allo5s industrial esta!lish"ents to shed 5or/ #orce 5ithout contra$enin) la!our la5s6 3) In the nature o# sel# induced retrench"ent and is a le)al 5a1 to do5nsi7e6 4) In 3JA allo5s co"panies to do5nsi7e the tar)et co"pan1, ho5e$er in preparation o# the G(S certain technicalities are in$ol$ed6 +) G(S pa1"ent is )enerall1 !ased on 1ears o# ser$ice6 -) At the sa"e ti"e the co"pan1 cannot co"pel the 5or/ers to accept G(S and it has to appl1 uni#or"l1 and cannot !e applied selecti$el16

Implementation o0 la3o;r la=s

The 3inistr1 o# &a!our has the responsi!ilit1 to protect and sa#e)uard the interests o# 5or/ers in )eneral and those constitutin) the depri$ed and the "ar)inal classes o# in particular 5ith re)ard to the creation o# a helth1 5or/ #orce en$iron"ent6 The 3inistr1 see/s to achie$e this o!>ecti$ethrou) h enactin) and i"ple"entin) la!our la5s re)ulatin) the ter"s and conditions o# ser$ice and e"plo1"ent o# 5or/ers6 In 19--, the 3inistr1 appointed the First ;ational&a!our %o""ission ';&%) to re$ie5 the chan)es in the conditions o# la!ours inceindependence and also to re$ie5 and assess the 5or/in) o# the e:istin) le)alpro$isions6 The ;&% su!"itted its report in 19-96 The i"portant reco""endations o# ;&% ha$e !een i"ple"ented throu)h a"end"ents o# $arious la!our la5s6

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Thank 9o; E
ByRAFNEESH