[Economy] Labour Laws and Industrial Relations inIndia- Quick revision note

mrunal.org /2012/09/economy-labour-laws.html

1. Labour Laws and Industrial relations

2. Constitution of India: workers’ provisions

3. Laws for Female workers

1. Maternity Benefit Act

2. Vishaka Case

3. Factories Act

4. Equal Remuneration Act

4. Labor Laws in India

1. Trade Union Act

2. Minimum Wages Act

3. Strikes and lockouts

4. Industrial Disputes Act (IDA)

5. Labour Courts

6. Industrial Tribunals

7. Workman’s Compensation Act

8. Employees State Insurance Act

9. Retirement Benefits

10. Emigration Act

5. UNORGANISED LABOUR

6. International Labour Organisation (ILO)

7. Ministry of Labour in India

1. Important OFFICES/institutes with Labour Ministry

2. Work done by offices with labour ministry

3. Chief Labour Commissioner

4. Labour Bureau

5. Welfare Commissioners

6. Employees’ State Insurance Corporation (ESIC)

7. Employees’ Provident Fund Organisation (EPFO)

8. Board of Arbitration

8. MCQs for APFC/UPSC Exam

Labour Laws and Industrial relations

Industrial relation = interactions between employers (businessmen/bosses), employees(workers) and the government (which makes the laws for them).

Labour laws=made by Government, they deal with a worker’s well being in the office: forexample working hours, hiring and firing, maternity leave, pension, union formation etc.

Constitution of India: workers’ provisionsArticle Provision/how is it related?

15 discrimination on religion, race,caste, sex and place of birth.

16 Equal opportunity in Government jobs.

19 The right to form union.But it does not carry with it the right to achieve every object. Thusthe trade unions have no fundamental to right strike. (it is only a legal right under theindustrial dispute Act)

21 right to ‘live’ is not merely confined to physical existence but it includes within its ambit theright to live with human dignity.

23 prohibits ‘bonded / forced labour’

24 Child labour

33 Those working in armed forces etc cannot enjoy all the fundamental rights.

39 Free legal aid, health of workers

41 Social security during unemployment.

42 humane conditions of work + Maternity Relief.

Laws for Female workers

Maternity Benefit Actwomen in the labour force who have been employed for 160 days in a year to provide leave with payand medical benefit.Vishaka CaseSC gave the guidelines regarding protection of women @work places against sexual harassment.

sexual harassment of working women amounts to violation of rights of gender equality

judgment also laid down the definition of sexual harassment, the preventive steps, the complaintmechanism, and the need for creating awareness of the rights of women workers.

Factories ActEmployer must provide crèches in factories where more than 25 women are employedEqual Remuneration Actfor the payment of equal remuneration to men and women workers for same or similar nature of work

Labor Laws in India

Here is the list of all Labor laws in India, Click On this image.

Trade Union Act

gives immunity to the trade unions against certain forms of civil and criminal action.

Provides for registration, internal democracy, a role for outsiders.

permission for raising a political fund subject to separate accounting requirements.

right to register a trade union however does not mean that the employer must recognise theunion – there is in fact no law which provides for recognition of trade unions and consequentlyno legal compulsion for employers, even in the organised sector, to enter into collectivebargaining.

Minimum Wages Act

This law governs the methods to fix minimum wages in scheduled industries (which may varyfrom state to state).

Strikes and lockouts

Workers have the right to strike, even without giving notice to their boss, unless it involves apublic utility service.

Employers (bosses) have the right to lockout, subject to the same conditions as a strike.

To solve the strike/lockout, both parties can engage with negotiation/talks.

If that fails, they can go to government appointed conciliation officer whose intervention mayproduce a settlement, which is then registered in the labour department and becomes bindingon all parties.

If that fails then parties can go for arbitration (private judge) or labour court.

Industrial Disputes Act (IDA)

A company with more than 100 workers must get Government’s permission before mass layoffsor closing down business.

Employer cannot change the existing service conditions / salary of a worker unilaterally withoutgiving a notice of 21 days to the workers and the union.

A permanent worker can be removed from service only for proven misconduct or for habitualabsence – due to ill health, alcoholism and the like, or on attaining retirement age.

In other words the doctrine of ‘hire and fire’ is not approved within the existing legal framework.

An employee can challenge the dismissal order in the labour court.

Industrial Disputes Act provides for setting up of Labour courts and Industrial tribunals.

Labour Courts

Labour Courts deal with matters pertaining to

1. discharge and dismissal of workmen

2. legality of strikes of lock outs etc.

Industrial Tribunals

Industrial Tribunals deal with collective disputes such as

1. wages,

2. hours of work,

3. leave, retrenchment,

4. closure of a company

5. + all matters which come under the jurisdiction of Labour Courts.

A settlement arrived at in the course of labour court/ industrial tribunals is binding on all parties to anindustrial dispute.

Workman’s Compensation Act

covers all cases of accident arising out of and in the course of employment’ and the rate ofcompensation

The injured person, or in case of death the dependent, can claim the compensation.

This law applies to the unorganised sectors and to those in the organised sectors who are notcovered by the Employees State Insurance Scheme

Employees State Insurance Act

provides a scheme under which the employer and the employee must contribute a certainpercentage of the monthly wage to the Insurance Corporation and it’ll run hospitals for them.

Retirement Benefits

There are two main types of retirement benefit generally available to workers.

Payment of Gratuity Act Provident Fund Act

a worker who has put in not lessthan five years of work is entitled toa lump sum payment equal to 15days’ wages for every completedyear of service.Every month the employer isexpected to contribute the requiredmoney into a separate fund toenable this payment on retirementor termination of employment.

scheme both the employee and the employermake an equal contribution into a national fund.The current rate of contribution is 12 percent ofthe wage including a small percentage towardsfamily pension.This contribution also attracts an interest,currently 9.5 percent per annum, and theaccumulated amount is paid on retirement to theemployee along with the interest that hasaccrued.The employee is allowed to draw many types ofloan from the fund such as for houseconstruction, marriage of children, andeducation etc. As a result very little is availableat the time of retirement.

Emigration Act

regulates the emigration of Indian workers for jobs abroad.

no agency can undertake the recruitment of Indian workers with foreign employers withoutpossessing a registration certificate issued by the Protector General of Emigrants.

UNORGANISED LABOUR

those who have not been able to organise themselves in pursuit of common objectives onaccount of constraints like casual nature of employment, ignorance and illiteracy.

They donot enjoy sick leaves, maternity benefit, provident fund etc. facilities enjoyed byorganized labourers.

But Government is making various schemes to help them out for example Aam Admi BimaYojana, New Pension Scheme (N.P.S) etc.

91% of the working population is in the unorganised sector

Example of unorganized labourers:

1. small and marginal farmers

2. landless agricultural labourers

3. fishermen

4. building construction workers

5. leather workers

6. handloom workers

7. weavers

8. rural craftsmen

9. salt workers

10. workers in brick kilns and stone quarries

11. midwives

12. domestic workers

13. barbers

14. newspaper,vegetable and fruit vendors

International Labour Organisation (ILO)

Established in 1919

HQ- Geneva, Switzerland

India is the founding member of ILO

International Labour Organization has a tripartite governing structure, (usually with a ratio of2:1:1) —

1. representing governments,

2. employers

3. workers

Ministry of Labour

Important OFFICES/institutes with Labour Ministry

1. Chief Labour Commissioner

2. Directorate General, Mines Safety

3. Welfare Commissioners

4. Board of Arbitration

5. Employees’ State Insurance Corporation (ESIC)

6. Employees’ Provident Fund Organisation (EPFO)

7. V.V. Giri National Labour Institute, NOIDA [He was the 4 th President of India and wrote books onlabour related matters.]

[^This list not exhaustive, I’m only listing the important ones for MCQ] Work done by offices withlabour ministry[again list not exhaustive, just providing the facts important for MCQ] Chief Labour Commissioner

Prevention, investigation and settlement of industrial disputes in the Central sphere.

Enforcement of awards and settlements.

Implementation of labour laws in industries

Verification of membership of Unions affiliated to the Central Organisations of Workers

Fixation and revision of minimum wages by notifications under the Minimum Wages Act, 1948

Labour Bureau

Compilation and publication of the Consumer Price Index Numbers for industrial andagricultural workers

Welfare Commissioners

Providing welfare facilities to the workers employed in the mica, limestone, dolomite, iron ore,

manganese and chrome ore mines and in the beedi and cinema industries.

Employees’ State Insurance Corporation (ESIC)

Implementation of Employees’ State Insurance Act, 1948, which provides for medical care andtreatment to insured persons and their families.

Providing assistance in terms of benefits during sickness and maternity, compensation foremployment injury, pensions for dependants on the death of workers due to employment injury,etc. to employees covered under the ESIC Act.

Employees’ Provident Fund Organisation (EPFO)

Administration of Employees’ Provident Funds

Administration of Employees’ Pension Scheme

Board of ArbitrationCompulsory arbitration of disputes between the Government employees and the Government onpay and allowances, weekly hours of work and leave.

MCQs for APFC/UPSC Exam

Which of the following statements are correct?

1. Supreme court laid down the guidelines against Ragging in Vishaka Case.

2. Humane conditions of work and Maternity Relief are fundamental rights enshrined in IndianConstitution.

3. Workers have the legal right to strike, even without giving notice to their boss in any industry.

4. Consumer Price Index Numbers for industrial and agricultural workers are published by NSSO

5. Only Sovereign nations can become members of Governing council of ILO.

6. In Gratuity fund, both Employer and Employee have to contribute.

7. In Provident Fund Act, only Employer (boss) has to contribute.

8. In Employees State Insurance, only Employer has to contribute.

9. The office of Directorate General of Mines Safety falls under the Administrative jurisdiction ofCoal Ministry.

10. EPFO and ESIC are autonomous institutions under Finance Ministry.