Origin and history of labour laws in India probably starts from the year 1860 onwards. In 1872 factories in Bombay invited the attention of public towards horrible working conditions in the factories. As a result of that for the first time Factories Act was enacted in the year 1881, which subsequently got amended for several times and finally got a shape in the year 1948, now being called as Factories Act 1948, which is meant for industrial workers exclusively for ensuring workers safety and healthy measures and also welfare measures two workers by employer. Though social security was provided to industrial workers in the form of ESI Act 1948 [Employees' State insurance Act], more Social Security was provided in the form of Workmen compensation Act 1923 by adopting certain conventions of the ILO [International labour organisation] in the year 1927. Eventually, other labour laws have evolved by reason and for specific object which ultimately aims for the protection of workers interest.
The following are some of the labour laws which have been enacted for specific purpose, which every industrial establishment and other manufacturing organisations mentioned in the labour laws should comply what the labour laws says. Otherwise such organisations are liable for penal action by the courts.
- Workmen's Compensation Act, 1923
- The Factories Act, 1948
- The Payment of Gratuity Act, 1972
- The Payment of Wages Act, 1936
- The Trade Union Act, 1926
- The Industrial Disputes Act, 1947
- Recruitment and Selection
- Training and Development
- Employee appraisal
- Compensation of rewarding
- Healthy, Safety and Welfare measures
- Maintaining Industrial relationships, Code of conduct and Discipline.
In case of public employment; article 16(1) of the Indian Constitution guarantees equality of opportunity to all citizens" in matters relating to employment" or "appointment to any office" under the state. According to Article 16(2), no citizen can be discriminated against, are to be ineligible for any employment or office under the state, on the grounds only of religion, race, caste, six, descent, place of birth or residence or any of them.
Performance appraisal of employees aimed at knowing employee efficiency or a deficit in his work and conduct. On the basis of performance appraisal, employee's suitability to the job is assessed the purpose of his confirmation, promotion and even further retention in the service. In case of adverse reports against an employee that it should be communicated to him with a view to inform him regarding the deficiency in his work and conduct and effort him an opportunity to make, and and improve in his work and further justification. To make it clear that it is again as the principles of natural justice to directly remove an employee from the job without informing him about his/her deficiencies and give an opportunity to rectify him/herself to the satisfaction level of employer.
- [Section 7] Deductions which may be made from wages
- [Section 8] Fines
- [Section 9] Deductions for absence from duty
- [Section 10] Deductions for damage or loss
- [Section 11] Deductions for services rendered
- [Section 12] Deductions for recovery of advances
- [Section 12A] Deductions for recovery of loans
- [Section 13] Deductions for payments to co-operative societies and insurance schemes
Workmen compensation Act 1923
the object of this act is to provide compensation to the workman who meet with an accident in the course of employment, causing injury and making him partially or totally disabled or sometimes causing death. Conditions when employer is not liable to pay compensation to the employee who met with an accident in the course of employment.
Payment of bonus Act 1965
The object of this act is about compulsory payment bonus to employee whose salary of wage is not exceeding Rs.21000/-, irrespective of profit or loss of the business.
- Minimum amount of bonus payable to employees is 8.33% [section 10]
Payment of Gratuity Act, 1972
The object of this act is about compulsory payment of gratuity to any employee who has completed five years of continuous service at the time of his retirement, resignation or on his death or disablement due to accident or disease. Provided that the completion of continuous service of 5 years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Gratuity = Monthly salary X 15 X Number of years of service
- Monthly salary= last month drawn salary by the employee.
- 26 = total number of working days in a month.
- 15 = number of days in half of the month.
(According to the latest 2010 amendment the maximum gratuity payable amount was increased to rupees 10,00,000/-)
Equal Remuneration Act, 1976
Employees' Provident Fund Scheme, 1952.
Healthy, Safety and Welfare measures
Factories Act, 1948
- Healthy measures- [section 11 to 20]
- Safety of employees - [section 21 to 40B]
- Welfare of employees - [section 42 to 50]
- Working hours - [section 51 to 66]
- Leave with wages - [section78 to 84]
Industrial Disputes Act, 1947