INTRODUCTION TO LABOUR LAW
Dr. Sarita Kumari
Introduction…
◦ Labour laws are the set of legal provisions, rules, and regulations that govern the
relationship between employers and employees. They aim to ensure fair treatment, protect
workers’ rights, and provide mechanisms for dispute resolution.
◦ Labour laws are also known as employment laws or industrial laws.
Objectives of Labour Laws
◦ Protect workers’ rights
◦ Ensure fair wages and working conditions
◦ Regulate employment terms (hiring, firing, leave, etc.)
◦ Promote industrial peace and harmony
◦ Enable collective bargaining and union rights
◦ Prevent exploitation of vulnerable groups like women and children
Scope of Labour Laws
Labour laws cover:
• Wages and compensation
• Working hours and overtime
• Leave policies
• Health, safety and welfare
• Employment contracts
• Industrial disputes
• Social security (PF, ESI, gratuity)
• Trade unions and collective bargaining
• Equal opportunity and anti-discrimination
Types of Labour Laws in India
Category Examples
Wage-related laws - Minimum Wages Act, 1948
- Payment of Wages Act, 1936
Social security laws - Employees' Provident Fund Act, 1952
- ESI Act, 1948
Industrial relations laws - Industrial Disputes Act, 1947
- Trade Unions Act, 1926
Working conditions laws - Factories Act, 1948
- Shops and Establishments Acts
Women & child welfare laws - Maternity Benefit Act, 1961
- Child Labour Act, 1986
Statutory Employment Laws
• Statutory Employment Laws refer to the mandatory legal provisions enacted by the
government to regulate employment relationships.
• These laws are binding on employers and employees and are designed to protect worker
rights, promote fair practices, and ensure industrial peace.
Wage-Related Laws
These laws ensure fair payment for work done.
• Minimum Wages Act, 1948
Mandates the minimum rate of wages payable to workers in scheduled employments.
• Payment of Wages Act, 1936
Regulates the timely payment of wages and prohibits unlawful deductions.
• Equal Remuneration Act, 1976
Ensures equal pay for equal work for men and women.
• Payment of Bonus Act, 1965
Provides for payment of bonus based on profits or productivity.
Social Security and Welfare Laws
Designed to protect workers against financial insecurity due to illness, retirement, or death.
• Employees’ Provident Fund & Misc. Provisions Act, 1952
Mandates contributions by employer and employee to a retirement fund.
• Employees’ State Insurance (ESI) Act, 1948
Offers health and social insurance to employees earning below a wage ceiling.
• Payment of Gratuity Act, 1972
Provides a lump sum payment to employees after at least 5 years of continuous service.
• Maternity Benefit Act, 1961
Provides paid leave and other benefits to female employees during maternity.
Working Conditions and Safety Laws
•Factories Act, 1948
Governs health, safety, and welfare of workers in factories.
•Contract Labour (Regulation and Abolition) Act, 1970
Regulates employment of contract labour and ensures their welfare.
•Shops and Establishments Acts (State-specific)
Regulate conditions of work, hours, and holidays in shops and commercial establishments.
•Occupational Safety, Health and Working Conditions Code, 2020 (yet to be fully implemented)
Consolidates 13 labor laws related to safety, health, and welfare.
Industrial Relations Laws
•Industrial Disputes Act, 1947
Provides for investigation and settlement of disputes between employers and employees.
•Trade Unions Act, 1926
Legalizes the formation and operation of trade unions.
•Industrial Employment (Standing Orders) Act, 1946
Requires employers to define service conditions of employment clearly.
Anti-Discrimination and Women’s Protection
•Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013
Mandates a safe working environment and redressal mechanism.
•Child Labour (Prohibition and Regulation) Act, 1986
Prohibits employment of children below 14 years and regulates adolescent work.
Recent Development: Labour Codes (2020)
To simplify and consolidate existing laws, the Government of India introduced four Labour
Codes:
1.Code on Wages, 2019
2.Industrial Relations Code, 2020
3.Social Security Code, 2020
4.Occupational Safety, Health and Working Conditions Code, 2020
◦ These aim to unify 29 existing labor laws and create a more business- and worker-
friendly framework. However, full implementation is still pending.
The Four Labour Codes
Labour Code Replaces Laws Related To
Code on Wages, 2019 Wages, bonuses, equal remuneration, and payment
of wages.
(Combines 4 laws)
Industrial Relations Code, 2020 Trade unions, industrial disputes, layoffs,
retrenchments, strikes.
(Combines 3 laws)
Social Security Code, 2020 Provident fund, ESI, gratuity, maternity benefits,
unorganized sector.
(Combines 9 laws)
Occupational Safety, Health and Working Factories, contract labour, working conditions,
Conditions Code (OSH Code), 2020 safety, and welfare.
(Combines 13 laws)
Thank You
