Handouts
Handouts
• Labour laws consist of legal provisions governing the rights and responsibilities of workers, employers, and trade
unions.
• Aim: To protect workers' rights, ensure a safe working environment, and establish fair employment practices.
o Employment Contracts:
▪ Cover aspects such as minimum wages, working hours, overtime pay, and leave entitlements.
▪ Employers must adhere to workplace safety norms and provide medical assistance.
▪ Prohibit workplace discrimination based on caste, gender, age, disability, religion, or sexual
orientation.
o Workers' Rights:
▪ Protect the right to unionize, collective bargaining, and strike under legal frameworks.
o Termination of Employment:
▪ Mandate provisions for severance pay, notice periods, and protection against wrongful termination.
▪ Cover employee benefits such as health insurance, maternity benefits, pension schemes, and
unemployment allowances.
• Labour laws vary by country, influenced by political, economic, and social factors.
JAYLISH 1
EPFO BY VYASA IAS
• In India, enforcement is carried out by labour inspection agencies, while disputes are resolved through labour tribunals
and arbitration.
The Indian Constitution provides a legal framework for labour laws, ensuring social justice, worker protection, and welfare.
Labour laws derive their authority from various constitutional provisions, including the Preamble, Fundamental Rights, Directive
Principles of State Policy (DPSP), and Legislative Lists.
• The Preamble establishes India as a sovereign, socialist, secular, and democratic republic committed to justice—
social, economic, and political.
• It upholds the idea of a welfare state, ensuring that the government addresses the concerns of citizens, particularly
those at the lower economic strata.
• A socialist pattern of society seeks equitable distribution of wealth and welfare, allowing economically weaker
workers to receive state support.
Several fundamental rights protect workers and ensure equality, dignity, and fair treatment.
o Guarantees equal treatment before the law and equal protection of laws for all, including workers.
o Prohibits discrimination on the basis of religion, race, caste, sex, or place of birth, including in employment
matters.
o Ensures equal employment opportunities for all citizens based on merit and qualifications.
o Prevents double jeopardy and self-incrimination, ensuring fair legal treatment of workers.
o Allows workers to directly approach the Supreme Court if their fundamental rights are violated.
JAYLISH 2
EPFO BY VYASA IAS
The DPSPs guide the state in framing policies for the economic and social well-being of workers.
o Ensures equal pay for equal work for men and women.
o Directs the state to secure living wages and decent working conditions.
o Initially a DPSP, now part of Article 21A ensuring free education for children aged 6-14 years.
o Directs the state to improve nutrition, standard of living, and public health.
Labour legislation is enacted under different lists in the Seventh Schedule of the Constitution.
o Regulations related to mines, oil fields, ports, railways, and central government employees.
o Trade unions
JAYLISH 3
EPFO BY VYASA IAS
o Industrial disputes
o Social security
• Article 256 & 257 empower the central government to issue directives to states regarding labour law administration.
• The central government can delegate powers to state governments for implementation.
• In case of conflict between central and state laws, central law prevails.
• Labour laws during British colonial rule were primarily designed to benefit British economic interests.
• Early labour legislation focused on industrial regulations rather than worker welfare.
▪ First major labour law aimed at regulating working conditions in textile mills.
• Despite these laws, workers faced exploitative conditions such as long hours, low wages, and hazardous workplaces.
• The Indian government introduced comprehensive labour laws to ensure worker welfare and economic development.
JAYLISH 4
EPFO BY VYASA IAS
o Factories Act, 1948:
▪ Lays down provisions for working hours, occupational safety, and health standards in factories.
▪ Mandates employers to share a portion of their profits with employees in the form of a bonus.
• The government proposed consolidating 29 existing labour laws into four comprehensive labour codes.
o Coverage:
▪ Most labour laws apply to establishments with a minimum number of employees (e.g., 10+ workers).
▪ Debate exists on whether all establishments should provide basic worker protections.
o Retrenchment:
▪ Prior government approval is required for closure, lay-offs, or retrenchment in establishments with
100+ workers.
▪ Industrial Relations Code increased this threshold to 300 workers, with provisions for further
modifications.
o Labour Enforcement:
o Contract Labour:
▪ Contractual employment increased due to rigid labour laws for permanent workers.
▪ The Industrial Relations Code introduced "fixed-term employment" as a new labour category.
o Trade Unions:
▪ The Code on Social Security introduced provisions for gig and platform workers.
o Delegated Legislation:
▪ Many crucial aspects, such as social security applicability and safety standards, are left to government
rule-making rather than legislative determination.
JAYLISH 5
EPFO BY VYASA IAS
• The four new labour codes replace 29 central labour laws to streamline regulations.
▪ Merges the Payment of Wages Act (1936), Minimum Wages Act (1948), Payment of Bonus Act (1965),
and Equal Remuneration Act (1976).
▪ Consolidates laws governing factories, mines, dock workers, construction labour, and contract labour.
▪ Replaces the Trade Unions Act (1926), Industrial Employment (Standing Orders) Act (1946), and
Industrial Disputes Act (1947).
▪ Merges Employees' Provident Fund Act (1952), Employees’ State Insurance Act (1948), Maternity
Benefit Act (1961), and other social security legislations.
• For Workers:
• For Employers:
• For Economy:
o Criticism exists regarding possible dilution of workers' rights under new provisions.
JAYLISH 6
EPFO BY VYASA IAS
MCQs:
1. Which of the following Acts was the first major labor law during British rule aimed at regulating working conditions in
textile mills?
Explanation:
o The Factories Act of 1881 was historically significant as it represented the first major attempt by the British
colonial government to regulate working conditions, specifically in textile mills.
o This Act was limited in scope but laid the groundwork for future labor legislation in India.
o It primarily focused on industrial regulations rather than comprehensive worker welfare, reflecting the colonial
administration's priorities of maintaining industrial productivity while providing basic protections.
o The Code mandates that overtime wages must be at least three times the normal wage rate.
a) 1 and 2 only
b) 2 only
c) 2 and 3 only
d) 1, 2 and 3
Explanation:
o Statement 1 is incorrect as overtime wages must be at least twice (not thrice) the normal wage rate.
o Statement 2 is correct as the Code on Wages, 2019 stipulates that deductions must not exceed 50% of total
wages.
o Statement 3 is incorrect as the Code requires minimum wages to be revised every five years, not three years.
3. Under the Industrial Relations Code, 2020, what is the minimum requirement for trade union registration?
Correct Answer: c) 7 members and 10% of workers or 100 workers, whichever is lower
Explanation:
o The Industrial Relations Code, 2020 has established a dual criterion for trade union registration.
o The union must have either 10% of workers or 100 workers, whichever is lower.
JAYLISH 18
EPFO BY VYASA IAS
o This provision aims to balance the right to form unions with the need for representative worker organizations.
4. In the context of recent labor reforms, what does the term "fixed-term employment" refer to?
Correct Answer: b) Contract employment with defined tenure and same benefits as permanent workers
Explanation:
o Fixed-term employment, introduced in the Industrial Relations Code, represents a significant reform in labor
laws.
o It provides for contract employment with a defined tenure while ensuring that fixed-term employees receive
the same benefits as permanent workers.
o This aims to provide flexibility to employers while protecting workers' rights and benefits.
5. Under the Occupational Safety, Health and Working Conditions Code, 2020, what is the provision for paid leave?
Explanation:
o The OSH Code mandates that workers are entitled to one day of paid leave for every 20 days worked per year.
o This provision ensures adequate rest and recuperation time for workers while maintaining productivity.
o The standardization of leave policy across sectors represents a significant step toward uniform labor rights.
6. The Social Security Code, 2020 provides for coverage of which new category of workers?
Explanation:
The Social Security Code, 2020 has introduced provisions for both gig and platform workers for the first time in Indian labor
legislation. This inclusion recognizes the changing nature of work in the digital economy and aims to provide social security
benefits to workers in these emerging sectors.
7. Consider the following statements regarding the Central Advisory Board under the Code on Wages:
JAYLISH 19
EPFO BY VYASA IAS
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3
Explanation:
The Central Advisory Board under the Code on Wages has specific functions including advising on minimum wage fixation and
promoting women's employment opportunities. While it includes representatives from employers and employees, the
representation is not necessarily equal, making statement 3 incorrect.
8. Under the Industrial Relations Code, what percentage of worker support is required for a trade union to become the
sole negotiating body?
a) 33%
b) 40%
c) 51%
d) 75%
Explanation:
Under the Industrial Relations Code, a trade union needs support from 51% of workers to become the sole negotiating body. If
no union achieves this threshold, a trade union council is formed for collective bargaining. This ensures democratic
representation in labor negotiations.
9. The Occupational Safety, Health and Working Conditions Code applies to establishments with:
a) 5 or more workers
b) 10 or more workers
c) 20 or more workers
d) 50 or more workers
Explanation:
The OSH Code applies to establishments employing 10 or more workers. This threshold ensures that smaller establishments are
not overburdened while maintaining adequate safety standards for a significant portion of the workforce.
10. Which of the following is NOT a permissible deduction under the Code on Wages?
a) Fines
b) Absence from duty
c) Political party contributions
d) Recovery of advances
Explanation:
Under the Code on Wages, while several deductions are permissible (including fines, absence from duty, and recovery of
advances), political party contributions are not listed as permissible deductions to protect workers from political exploitation.
11. Under the new labor codes, what is the threshold limit of workers above which an establishment needs government
approval for closure?
a) 100 workers
b) 200 workers
c) 300 workers
d) 500 workers
JAYLISH 20
EPFO BY VYASA IAS
Explanation:
Under the Industrial Relations Code, establishments with 300 or more workers need prior government approval for closure,
retrenchment, or layoffs. This represents an increase from the earlier threshold of 100 workers, aiming to provide greater
flexibility to employers.
12. Which of the following Acts was NOT merged into the Code on Social Security, 2020?
Explanation:
The Industrial Employment (Standing Orders) Act, 1946 was merged into the Industrial Relations Code, not the Code on Social
Security. This Act primarily dealt with conditions of employment rather than social security benefits.
13. Under the new labor codes, which of the following is mandatory for establishments with 50 or more female workers?
Explanation:
The OSH Code mandates that establishments with 50 or more female workers must provide a crèche facility. This provision aims
to support working mothers and promote women's participation in the workforce.
14. What is the maximum time period for which workplaces can be exempted from the provisions of OSH Code during
public emergencies?
a) 6 months
b) 1 year
c) 2 years
d) 3 years
Explanation:
During public emergencies, disasters, or pandemics, workplaces can be exempted from certain provisions of the OSH Code for
up to one year. This provides flexibility during exceptional circumstances while ensuring the exemption period remains
reasonable.
15. Which of the following statements best describes the concept of "floor wage" under the Code on Wages?
Correct Answer: b) Base wage set by Central Government below which no state can fix minimum wages
Explanation:
The floor wage is a concept introduced in the Code on Wages where the Central Government sets a base wage rate below which
no state government can fix their minimum wages. This ensures a basic minimum standard across the country.
16. Consider the following statements about the Fixed Term Employment introduced under the new labor codes:
JAYLISH 21
EPFO BY VYASA IAS
• No notice period is required for termination of service
a) 1 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Explanation:
Fixed-term employees are entitled to all benefits available to permanent workers, and gratuity is payable even for service less
than five years. However, a notice period is required for termination of service, making statement 2 incorrect.
17. The maternity leave period under the Code on Social Security has been increased to:
a) 12 weeks
b) 16 weeks
c) 26 weeks
d) 36 weeks
Explanation:
The Code on Social Security has increased the maternity leave period from 12 weeks to 26 weeks. This enhancement aims to
provide better maternal care and child-rearing support to working women.
18. Which of the following bodies is responsible for administering the Employees' Provident Fund schemes under the Social
Security Code?
a) ESIC
b) Central Board of Trustees
c) National Social Security Board
d) State Social Security Board
19. Under the Industrial Relations Code, what happens if no trade union achieves the required support for becoming the
sole negotiating body?
20. What is the time period within which covered establishments must register under the OSH Code?
a) 30 days
b) 45 days
c) 60 days
d) 90 days
JAYLISH 22
EPFO BY VYASA IAS
Correct Answer: c) 60 days
Explanation: Under the OSH Code, covered establishments must register within 60 days of commencing operations. This timeline
ensures proper documentation and oversight of new establishments while giving reasonable time for compliance.
21. Consider the following statements about Inspector-cum-Facilitators under the new labor codes:
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
22. What is the provision for working hours under the OSH Code?
23. Under the Code on Social Security, what is the penalty for failure to pay gratuity?
24. Which of the following is a new feature introduced in the Industrial Relations Code regarding fixed-term employment?
a) No severance pay
b) Same benefits as regular workers
c) No gratuity payment
d) Restricted to seasonal work
25. Consider the following statements about the National Industrial Tribunal:
JAYLISH 23
EPFO BY VYASA IAS
Which statements are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
26. What is the threshold for mandatory constitution of a Works Committee under the Industrial Relations Code?
a) 50 workers
b) 100 workers
c) 200 workers
d) 300 workers
27. Under the Code on Wages, how frequently must minimum wages be revised?
a) Every year
b) Every three years
c) Every five years
d) Every seven years
28. Which of the following is NOT a function of the Central Advisory Board under the Code on Wages?
Explanation:
Dispute resolution is not a function of the Central Advisory Board under the Code on Wages. The Board's primary functions
include:
29. What is the provision for payment of wages under the Code on Wages in case of a worker's death?
a) Within 30 days
b) Within 60 days
c) Within 2 days
d) Within 7 days
JAYLISH 24
EPFO BY VYASA IAS
Explanation:
In case of a worker's death, all dues must be paid within two days. This provision ensures quick settlement of dues to the
deceased worker's family.
30. Under the OSH Code, what is the minimum notice period required for a change in working conditions?
a) 7 days
b) 14 days
c) 21 days
d) 30 days
Explanation:
The OSH Code requires employers to give at least 21 days' notice before making any changes to working conditions. This ensures
workers have adequate time to adjust.
31. Which of the following statements about the trade union recognition process is correct?
Explanation:
• Trade union recognition depends on the percentage of worker support (51% for sole negotiating body).
• Multiple unions can exist, but recognition for negotiation purposes depends on membership percentage.
32. What is the time limit for payment of bonus under the Code on Wages?
Explanation:
Under the Code on Wages, bonus must be paid within 8 months from the close of the accounting year. This ensures timely
payment of bonuses to eligible workers.
33. Consider the following statements about the grievance redressal mechanism:
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Explanation:
JAYLISH 25
EPFO BY VYASA IAS
• Industrial establishments with 20 or more workers must have a grievance redressal mechanism.
• Workers cannot directly approach the tribunal without following the prescribed procedure.
34. What is the provision for working women under the OSH Code regarding night shifts?
a) Completely prohibited
b) Allowed with adequate safety measures
c) Allowed only in the IT sector
d) Allowed only with written consent
Explanation:
The OSH Code allows women to work night shifts (7 PM - 6 AM) provided the employer ensures:
35. Under the Social Security Code, what is the provision for registration of unorganized workers?
a) Optional registration
b) Mandatory registration with state boards
c) Self-registration on a portal
d) Registration through trade unions only
Explanation:
The Social Security Code provides for self-registration of unorganized workers on a portal. This facilitates their access to social
security benefits, making the process more accessible and user-friendly.
JAYLISH 26