LABOUR LAW

Presented By:
Manish Thakur
Nishant Mahajan
Vikas Malik
Vishal Chopra
Vishal Chandel

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Whats Labour Law

???
Labour law is the body of laws, administrative rulings,
and precedents which address the legal rights of, and
restrictions on, working people and their organizations,
often dealing with issue of public law.
In other words, Labour law defines the rights and
obligations as workers, union members and employers
in the workplace

Categories of
labour law
collective labour law relates to the

relationship between employee employer

and union.
individual labour law concerns employees'

rights at work and through the contract for

work.

Labour law covers

Industrial relations certification of unions, labour-

management relations, collective bargaining and

unfair labour practices
Workplace health and safety
Employment standards, including general holidays,

annual leave, working hours, unfair dismissals,

minimum wage, layoff procedures and severance pay.

Origins of Labour
Laws
Labour law arose
Workers began Demanding better Conditions &

the Right to Organize.

When the Employers tried to Restrict the Powers

of Workers Organizations & keep Labour Costs

Low.
To improve their Standard of Living.
Employers costs increased due to workers

demand.

Important Acts of Indian

Labour Laws
o The Apprentices Act - 1961
o The Payment of Wages Act -1936
o The Workmen's Compensation Act -1923
o The Industrial Disputes Act - 1947
o The Employees PF & MP Act - 1952
o The Employees State Insurance Act -

1948

o The Payment of Bonus Act - 1965

PAYMENT OF WAGES ACT,

1936
An Act to regulate the

payment of wages to certain

classes of persons

Extends to the whole of India

Responsibility of payment wages rests with

the employer
Employer to fix Wage Period
No wage period shall exceed one month.

Time of Payment of wages

7th day of wage month where less than

1000 are working

10th day where more than 1000 are
working
No payment in KIND

Permissible deduction from Wages

fines
for absence from duty
for damage caused to the property of the
employer
for the amenities provided, like house
accommodation
for recovery of advance or adjusting over
payment of wages
towards EPF, ESI, Labour Welfare Fund and
similar deductions permitted under any Act.
for Life Insurance/ general insurance policies
and Housing loan.

THE PAYMENT OF BONUS

ACT, 1965
An Act to provide for the payment of Bonus to

persons in certain establishments on the

basis of profits, production or productivity.
Extends to the whole of India.
Applies to every establishment wherein 20 or
more are employed
The Appropriate Govt. shall apply the Act to
any other establishment, including a factory
to which the Factories Act, 1948 applies,
wherein less than 20 workers are employed
provided the number of persons employed is
not less than 10.

Eligibility to Bonus
employee whose salary/ wages does not
exceed Rs 10000 per month
who has worked in the establishment for
not less than 30 days
Not disqualified to claim bonus due to
fraud, theft or any other misconduct
Bonus of every person drawing salary
between Rs 3500/- and Rs 10000/- per
month shall be calculated as if his salary
were Rs 3500 pm

No discrimination
No discrimination while making
recruitment for the same work or
work of a similar nature, except
where the employment of
women in such work is
prohibited or restricted by or
under any law for the time being
in force.
No discrimination in any
condition of service subsequent
to recruitment such as
promotions, training or transfer.

THE APPRENTICES ACT, 1961

The Act extends to the whole of India.
Applies to those apprentices who are

undergoing apprenticeship training in

designated trades.
From time to time, the Central Govt. has

specified the designated trades.

Contract of apprenticeship
A contract of apprenticeship training is

entered in to between the employer and the

apprentice or, if he is a minor, guardian of the
apprentice.
The contract of apprenticeship training is to

be sent to the Apprenticeship Adviser of the

respective area.

Termination of training
on the expiry of the period of apprenticeship
training specified in the contract.
Premature termination by employer the employer shall pay to the apprentice such
compensation as may be prescribed
Premature termination by the apprentice
apprentice or his guardian shall refund to the
employer as cost of training such amount as
may be determined by the Apprenticeship
Adviser

THE WORKMENS COMPENSATION

ACT, 1923
The Act provides for payment of

compensation to the worker injured

during the course of employment or
contracted by any occupational
disease peculiar to that employment
Act extends to the whole of India.

The amount of compensation

For accidents resulting in death, an
amount equal to fifty per cent of the
monthly wages of the deceased workman
multiplied by the relevant factor; or an
amount of eighty thousand rupees,
whichever is more.
For permanent total disablement, an
amount equal to sixty per cent of the
monthly wages of the injured workman
multiplied by the relevant factor, or an
amount of ninety thousand rupees,
whichever is more.

EMPLOYEES STATE INSURANCE

ACT, 1948
Act extends to the whole of India,
However
The ESI Scheme is being implemented
area-wise by stages.
The Scheme has already been
implemented in different areas in all
States/Union Territories except
Nagaland, Manipur, Tripura, Sikkim,
Arunachal Pradesh and Mizoram and UTs
of Delhi, Chandigarh and Pondicherry

ESI Act
* Applies to factories and
establishments functioning in the
notified area and consisting of 10 or
more employees.
* Provides for health care and cash
benefits in cases of sickness, maternity
and employment injury.
* The Act absolved the employers of
their obligations under the Maternity
Benefit Act, 1961 and Workmens
Compensation Act 1923.

Employees
covered

All employees drawing

salary of Rs 10,000 or less
are covered
(w.e.f 1-10-2006)

ESI Benefits

Medical Benefits
Available both to IP and family.
Also available to disabled/retired IP
Super specialist treatment.
Sickness Benefit Maternity Benefit
Disablement Benefit
Dependant benefit Funeral Expenses
Old age medical care Rehabilitation

EMPLOYEES PROVIDENT FUND AND

MISC.
PROVISIONS ACT, 1952
An Act to provide for the institution of

provident funds, pension funds and deposit

linked insurance fund for the employees in
the factories and other establishments
Extends to the whole of India except the
State of Jammu and Kashmir

Applicability

Applies to all factories and

establishments in which 20
or more are employed
Continuity of application
Exemption
Where employees get
benefits in the nature of
provident fund or old age
pension fund from the
establishment which are not
less favorable than the

Schemes under the Act

Three beneficial schemes1.Employees Provident Fund Scheme
1952
2.Employees Pension Scheme 1995
3.Employees Deposit Linked Insurance
1976

THE INDUSTRIAL DISPUTES

ACT, 1947
An Act to make provision for the

investigation and settlement of

industrial disputes, and for certain other
purposes.

It extends to the whole of India

Industrial dispute
Any dispute or 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.

AUTHORITIES UNDER THIS

ACT

Works Committee
Conciliation officers
Boards of Conciliation
Courts of Inquiry
Labour Courts
Tribunals
National Tribunals

Works Committee

Where?: Establishments with 100

or more workers
Members: Equal number of
representatives of the Employer
and Employees
Objective: promotion of good
relationship between employer
and employee(s)

Conciliation officers

Appointed by the appropriate

Government

Duty: Settlement of industrial disputes.

Nature : Appointed for a specified area

or for specified industries in a specified
area or for one or more specified
industries and either permanently or for
a limited period.

Boards of Conciliation

Appointed by the appropriate

Government as occasion arises
for settlement of disputes.
Board shall consist of an
independent Chairman and two or
four other members in equal
numbers to represent the parties
to the dispute.

Courts of Inquiry

Constituted by the appropriate

Government as occasion arises
for inquiring into any matter
appearing to be connected with
or relevant to an industrial
dispute

Labour Courts

Labour Courts are constituted by

the appropriate Govt. for the
adjudication of industrial disputes
relating to any matter specified in
the Second Schedule and for
performing such other functions
as may be assigned to them
under this Act.

Tribunals

Tribunals are constituted by the

appropriate Govt. for the
adjudication of industrial disputes
relating to any matter specified in
the Second Schedule or the Third
Schedule and for performing such
other functions as may be
assigned to them under this Act.

National Tribunals

National Tribunals are constituted by

the Central Government for the
adjudication of industrial disputes
which, in the opinion of the Central
Government, involve questions of
national importance or are of such a
nature that industrial establishments
situated in more than one State are
likely to be interested in, or affected by
such disputes.

Matters within the Jurisdiction

of Industrial Tribunals (the II &
III schedule)
1. Wages, including the period and mode
of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund.
6. Shift working otherwise than in
accordance with standing orders;
7. Illegality or otherwise of a strike or
lock-out
8. Rules of discipline;
9. Grant of relief to discharge or dismissal
of workmen wrongfully.

International comparison of
Indian labour laws:
Practice required by
law
Minimum wage(US $
/month)
Standard work day
Minimum rest while at
work
Maximum overtime limit
Premium pay for
overtime

India
INR 6000 (US$97)
/month
8 hours
30 minutes per 5
hour
200 hours per year
100%

China
182.5

8 hours
None
432 hours per
year
50%

THANK YOU