Important Labour Laws There Are!

Sep 23, 2020
Important Labour Laws There Are!

No silent charade for puppets! 
You need to know these to be on top of your labour rights!

Do you know that there are almost 200 central and 50 state labour laws in India? All these laws have been written in the best interest of a working professional in India. With exploitation on the rise in the mid-1900s, the government of India, under the supremacy of the British raj framed certain laws. These laws would cater to the sentiments and needs of the workers. 

In this article, we are going to talk about essential, fundamental, and essential labour laws that every candidate should know. Alternatively, every hiring manager and HR personnel must adhere to these laws to laws to be fair to an employee. 

Importance of labour laws in India & why!

Every labour law has been written with a plan. To put the finger on which holds importance over the other would be a few cards short of a deck. Hence, understanding the foundational importance of these 250+ laws is imperative. 

Did you know? There is no clear definition of a “labour law” in India, despite having over hundreds of them. They are broadly given categories based on the needs, ethics, safety measures, rights, etc. they take care of an employee. 

Take the example of the recent “Health & Working Code Bill of 2019” passed by the Lok Sabha (lower house of the Indian Parliament). It hit the nail in the coffin of the occupational safety of a worker either working in a factory or an establishment. It indeed becomes a vital law for candidates as well as managers to keep in mind.  

Labour laws serve the purpose of: 

  • Social Impartiality 
  • Employee Welfare
  • National Economic Growth & Development
  • International Uniformity Standards
  • Reduction In Confusion & Conflicts 
  • Ensuring Job Security 
  • Occupational & Psychological Welfare of Employees

My dear HR, these are for you! 

So is it for employees, just in case! 

Okay, quickly here is a list of certain labour laws that may draw a cautious line of practice for an organization! 

Factories Act of 1948 - This act applies to factories employing ten or more workers. Employers shall deal with problems concerning safety, health, efficiency, and well-being at work of the workers. 

Worker’s Compensation Act, 1923 - Under this act, if any employee is injured at work in an accident, employers would provide for the expenses of the medical aid.

Minimum Wages Act, 1948 - Minimum wages differ from state-to-state, the field of work, category, etc. Under this act, an employer would provide minimum wages to an employee according to their designation.

Payment Of Wages Act, 1936 - According to this act, an employer must give the salary to employee latest by 7th of every month. It also governs the deduction from the paycheck. 

Equal Remuneration Act, 1976 - In this act, if two persons are in the same position, a company cannot differentiate between them based on their gender, caste, colour, etc.

PF Act, 1952 - This act governs the provident fund & pension of an employee. 

Bonus Act, 1965 - A myth that bonuses are 8.33% only, is cleared under this act. It states that statutory bonuses are compulsory in a financial year. 

Gratuity Act, 1972 - If this is taken into consideration, an employee who works for more than 5 years, the employer will give a gratuity to the employee for an extra working period of 15 days. 

Shop & Establishment Act - This act governs the leaves & holidays given to employees in a year. It differs from state-to-state.

Maternity Benefit Act - An act that not only supports women’s working in India but also encourages is the maternity benefit act. According to this, if a woman is on the way to motherhood, he can take a minimum of 26-weeks leaves which will be paid by an employer.

We have tried to sum up these acts in a line or two for the understanding of the reader. Please visit the links to understand the concepts in depth. 

Each of these act as basic laws for a decent company to function by. Each state will have certain alterations in the practice of these. However, more or less, these are the same. 

HR personnel are advised to go through laws according to their state, field of work, degree of authority, and similar factors, before applying them. 

Summing up!
There are no two doubts about the fact that every company functions differently. Does your company follow the labour laws? Do you think there’s anything better you could’ve done by being an HR? Look for some latest job that we listed this month & work for a company that aligns with your idea of working.