10 labour laws every Indian employee should know

By
Discountwalas
-
68
3142

10 labour laws every Indian employee should know.




According to the United Nations, India has the largest youth population and stands at a point where the dream of becoming the super economy seems a possibility now. With mixed viewpoints of different people, labour laws and reforms has always been a topic of controversy which no one wants to discuss. When the scenario is such, it becomes all the more important for both the parties employers as well as the employees in both organized and un-organized sectors to be well aware about the laws and right for both existing and the on-going reforms.

Labour laws and its reforms has always been a topic of debate and concern since past many years. In this article we have listed some of the important acts that every citizen of India should know.

- Advertisement -
  1. The Factories Act, 1948

This act was established to prevent any kind of exploitation on the factory workers by the owners and was created to defend the rights and interest of the employees. As per this law, it is mandatory to assure some sort of working conditions fixed by both the employers or the factory owners for the employees. It is clearly mentioned that the maximum working hours should not be more than 48 hours per week. And one weekly holiday is a must to be provided to any employee.

  1. The Employees Provident Fund Act, 1952

The Employees Provident Fund (PF) 1952 is to sanction a type of social security to the employees. This particular Act is applicable for every employee who works in a factory or any other establishment whether organized sector or un-organized one, wherein they get welfare such as medical care, housing, retirement pension, benefits of education and financing insurance policy etc.

  1. Maternity Benefit (Amendment) Bill 2017

Maternity Benefit Act was established in 1961 to benefit expecting mothers and later amendments were made in 2017 to provide more benefits to the expecting employee. The act was made to protect employment of the women employee during the time of maternity and provides her with ‘maternity benefit’ i.e full paid absent from work – to let take care of her child and herself. The new amendments has increased the duration of paid maternity leave available for women employees from the existing 12 weeks to 26 weeks. Along with this, some more claws have been added like maternity leave for adoptive and commissioning mothers, work from home option, crèche facility and employee awareness at the time of appointment.



  1. The Apprentices Act , 1961

Under this act, one is allowed to take casual leave of 12 days, medical leave of 15 days and certain other leaves of 10 days in a year (which are paid). And one is just required to work for 42 or 48 hours a week. This is to ensure there is a work-life balance for the employees.

  1. The Workmen’s Compensation Act, 1923

This act proves to be helpful for the employees injured in an accident. The Workmen’s Compensation Act 1923, was established to provide financial protection to the workers as well as their dependents in the form of compensation, in the case of sudden accidental injury.

  1. The Payment of Gratuity Act , 1972

Gratuity is nothing but a cumulative part of the salary received by the employees. The company has to provide its employees a set amount as a gratitude for the services performed by them during their tenure with the company.

It is one of the retirement benefits that the company gives to their employees at the time of leaving the company. But to become eligible for this, they have to complete at least one year of service to get the benefit of gratuity in case of his or her death.

  1. The Payment of Wages Act, 1936

It aims at providing financial assurance of payment of wages or salary without any sort of deductions.  As per this act, the employer has not right to take away the money he is entitled to pay. And, not only the assurance, but timely imbursement of wages is also mentioned in this act. Every employee should know that, even if he/she is terminated from the services they are qualified to take their salary for that particular month.



  1. The Industrial Disputes Act ,1947

As the name suggests, this act was made to protect the employees who has dispute with their employers. No employer can throw the employee out just like that, he has to provide a notice of at least 6 weeks before they terminate you from the service.

  1. The Payment of Bonus Act, 1965

As a component of profit or productivity, the Payment of bonus Act 1965 makes it mandatory for employers to provide bonus to the employees. If the employee has worked for at least 30 working days in that particular year, he or she is entitled to receive the bonus. Also, if you are not given the same, you can claim your rightful bonus  in that same year.

  1. The Employees State Insurance Act (ESIC) , 1948

This act protects benefits for the workers who are sick and got injured somehow while they were working or on duty. ESIC is a self-financing security form and a health insurance scheme for all workers. This scheme provides medical benefit for the employees and their families.

It also provides dependents’ benefit for the dependent family member in case of death due to any sort of employment injury. In such case, the employers should deposit the money each month in the employee’s A/C. Also, they should grant leave to the protected (insured) employees based on their medical certificates. And, the employer is entitled to cover the expenditures in case of funeral or any other sort of tragedy that happened with their employees while on duty.



- Advertisement -

RELATED ARTICLESMORE FROM AUTHOR

68 COMMENTS

    • For this 10 laws when the workers elegeable for th8s law.
      When they fresher to learn the job?
      If they only to pay learning fee and after they l8ke to work they can ,so in that type contract.
      They already taken 52 government holiday leave+ 20 days sick leave ,then after how much leave we give free in paid salary?
      Tell.

  2. Dear Sir/Ma’am,
    I had worked with Universal Buildwell Pvt Ltd,Gurgaon for six year.In last two year they paid the salary very delayed even after resignation dtd 5th July 2016 still they have not given my 3months salary.I don’t understand what I have to do now.I don’t want to file any case against company.Even PF of 4months not deposited .I am requesting from the last 1year for my salary.Pls suggest me

    • Hi, Hope you have your joining and confirmation letter with you. You should go with labour court along with all the documents and register a complaint against the company. This is your right. Labour court will help you to out of this problem.

    • Hi Aisha

      You can file a complaint in the Labor Department of Gurgaon on this. In their Office you will have to meet the Labor Inspector who will be incharge of that particular ward that comes to Universal Buildwell office address.

  7. Sir I had worked with a company in Coimbatore as a security officer. How ever even after two weeks of working with them I was not given my appointment order. In the mean time I got appointment vin another firm with more pay due to which I had to quit the job. I had not signed any papers relating to notice period. I had asked them to pay me my due which has been delayed for more than four months. They are trying to fool me by giving excuses. What should I do now. I was planning to meet a lawyer and send a notice. What is your opinion

  8. very good but it will not come to present until government take strictly action.I am also working in place were I don’t get pf and work is such Hectic means I will not get holiday on August 15 January 26 and even on Labour day…
    our rules and regulations are only in Ic no one is following it..

    • Hi Mahantesh

      If there are 20 plus employees in your organisation, you can inform your employer to register under PF and ESIC. This is a must.

  11. hi
    i am prabhjot saini.
    I am working in jallaandhar panipat nh one tollway pvt. company.
    i have facing some problens regarding road users .
    he made video and upload internet and you tube also.our manager not supports girls staff and says no action against this type users..
    More than users using abused language.
    but same manager not supported girls staff…

    pleasr help me this type seniors staff
    …..

    yours truly

    • All jobs have their set of risk and problems. While joining one must understand the atmosphere in which one has to work. Once fully understood work scenario, should start working. HR employees also work under orders from seniors, employer. They can not be entirely blamed, yet the grievance must be told and remedy sought.

  12. After resignation the company is delaying in doing the Full and final settlement.what is the procedure and process to get to back the amount.Can a company can hold a for long time a salary for an employee.

  13. Hi,

    I am working in kenya and now my company took visit visa for me and made me work for 30 days. During this period I was given bed rest from the doctor and when I resumed back to wok HR said you are illegal to work.
    I asked them company made my visa nd made me work if company had issues to get work special pass or work permit company should have discussed the then eMPlayer and employee could have come to a conclusion.I was told to quit without any intimation nor document also they are not paying for 30 days notice period.

    Kindly suggest.

    Thank you.

  16. Sir,
    I work as a Branch manager with a Reputed Bank. I am in my probation period of 1yr. My offer letter says ” One can be Terminated in Probation period with out any reasons mentioned. And I was called and asked for Resignation or else will be Terminated. False allegations were levied on me. Point no 8 of INDUSTRIAL DISPUTES ACT 1947 says, “As the name suggests, this act was made to protect the employees who has dispute with their employers. No employer can throw the employee out just like that, he has to provide a notice of at least 6 weeks before they terminate you from the service.”

    Is this applicable to Bank employees too. Pls Help………………..

  17. Good site but not transparent.
    Have an adviser to guide you to earn your expense but don’t hide your expertise for people. Guide them, if stuck, we should reliey on you as teacher for a quick answer.
    Not like an income tax act. That you have to read 25 sections to get one answer.
    Mukader koi nahi cheen sakta.

  21. In case the factory needs to be closed either due to old age of the owner or due to to recurring losses.
    What is the compensation i required to be given to workers who are regularly paid salary & are covere under all the benefits as per the all applcable labour laws.

  27. *I was as a service supporter in auto Ind.for last 10 year.(maintenance ,electrical) *I am having 2 technicians as a labour. * They are covered under w c policy. I was paying them 620 /-Rs a day +100 /-lunch +1 Leave for 20 days * 7500/-Rs bonus. * As per my knowledge PF & ESI is not applicable for less than 10 employee. *From July 17 comp. is allowing to work in side because the persons are not having ESI & PF Number.From last 4 months they are unemployed. *How can I convince the party for our job.

    • Hi,

      in this situation, you have to ask your principal employees for submitting PF/ESIC contribution on behalf on your.

      you have to maintain all your labor’s attendance, wages sheet, leave record, also submitting a copy to all record to your principal employer’s end of every month.

      Regard’s

      Soban Negi
      9899101275

  28. From July 17 comp. is NOT allowing to work in side there factory because the persons are not having ESI & PF Number.From last 4 months they are unemployed. *How can I convince the party for my contract and there job.

  29. Apprentice Act & Work Life Balance for employee ? Something wrong !! Who has written ? I don’t know but it’s totally incorrect.

  31. There is so many companies in India who hire workmen on contract basis and working duration not treat well and have 12hrs working time daily providing 50-100/hours as overtime

    How I can take action against such kind of company

  33. Hello sir, I am working in bvg india ltd delhi from Aug 2013 to till date. Sir, I just want to know if i want to leave my job from now whether i am eligible for gratuity or not. Kindly update me.

  34. Very nice & essential article. This will help all those workers, employees of the company, organisation.Now a days Laws are being very strict,and eble to give Justice.Everyone should know the importance of said INDUSTRIAL LAW.

  36. If the employee is of very senior cadre in a private establishment, is he eligible for PF, ESI, gratuity and bonus. Also will all the labour laws apply for his employment also.
    If an employee has been forced to resign under threat of termination what he should do. This is very common practice in private organisations. Please advice what an employee should do in such a situation since resignation will take away all his rights to fight in the court of law against the employer who has forced him to OK resign

  37. Labor law isn’t followed in our country religiously. Things look good on papers but not practical.

    Larger organizations like MNC’s in metro cities follow these guidelines to extract maximum out of their healthy living employees, but smaller organizations are left at their discretion to provide low wages and no benefits to their employees. Leaves policies are different from organization to organization. Specially people living in tier-2 & 3 cities where opportunities are less, these employers take maximum advantage of employees’ silence and give literally no benefits. On-time salary is an issue, forget about perks and extra benefits.

    Govt. isn’t serious about labor law, neither does the local / national authorities. Employers get easy escape due to political influence, friendly legal authorities, and sound background. Audit bodies are silenced with hefty bribes and employee couldn’t speak due to his/her job requirement. In the name of insurance, employers are happily awarding PMSBY & PMJJBY which can be availed by employee itself by paying nominal charges.

    UIDIA (adhar card) has made an attempt to collect the database of Indian citizens. Review the data to know what is the ratio of EPF accounts created and the Indian population.

  39. Hi,

    My concern is that I was working in Assimilate Solutions India Gurgaon I submitted resign and my last working day was October 29, 2016 I completed served notice period. But company did not pay my payouts and not given my experience latter because I have Join cognizant Hyderabad. Please suggest what should I do.

    Satish kumar

  40. My epf amt was detected from my salary but for the last 5months it was not credit to my epf account!. What are the possiblities of legel actions are there against the company. Its is pvt ltd on banglore

  41. Very informative and useful
    Looks good on paper. Had file case against company from last 9 month, still waiting for the result. No one help here.
    In case the factory needs to be closed either due to old age of the owner or due to to recurring losses.
    What is the compensation i required to be given to workers who are regularly paid salary & are cover under all the benefits as per the all applicable labor laws.

  42. I worked in a engineering college as asst. professor and worked for 4 years 10 months, in this regard I would like to know about my gratuity eligibility. since, the management says eligibility only on completion of 5 years. In this regard and as per the judgement of Mettur Beardsel Ltd if an employee worked 4 years 240 days without break is eligible for gratuity. This may be clarified with emphasis please.

  43. I am the company secretary of our company and I have some query regarding this ongoing issue in our country regarding labour laws:
    1. Suppose a company is not in a position to pay the minimum wages as per the act and one of the employees has gone to labor court, what an organization can do in this regard? Kindly suggest, because we cannot go through only one perspective.

    2. Our company gives two days week off(Saturday and Sunday). But the timing of office boy is 9 hours a day,i.e. more than 8 hours a day but less than 48 hours a week. As per factories act the working hour should be less than 48 hours.Are we doing something wrong.

    What a company can do if the employee is taking undue advantage of law. Please suggest.

    Thanks

    • Hi,

      Hope you are doing well

      1. As The Minimum Wages Act 1948. Minimum wages that must be paid to skilled and unskilled employee’s

      2. Normally office timing is 9.30 to 5.30, however you have update a notice on your HR board regarding timing, mentioning with 30 minutes lunch and 2 berks of 15 mints during working hours.

      Regards
      Soban Negi
      9899101275

  45. नमस्ते
    आपने बहुत अच्छा संदेश दिया है लेकिन एक चिंता का विषय अभी भी काफी मजदूर भाईयों को सता रही है सवा सौ करोड़ आबादी मे केवल पच्चीस करोड़ सरकारी नौकरी करते हैं बाकी सौ करोड़ लोग खेती ,करके और किसी कंपनी मे नौकरी करके जीवन यापन कर रहे हैं सरकारी नौकर को वेतन आयोग है लेकिन प्राईवेट सेक्टर के लोग अभी भी परेशानी मे हैं कोई भी लेबर शोषण आयोग नहीं बना हैं धनी हायर अफायर करके टैक्स की भी चोरी करते हैं और लेबर को सताया जाता हैं ट्रेड यूनियन कानून सरकार खत्म करदिया चीन की तरह हमारे देश के भी मजदूर हर दिन की मजदूरी पर काम करेंगे आगे आने वाले दिनों मे समस्या गंभीर आने वाली है
    जय हिन्द

    • I want to know whether Labour law is applicable for only government companies? I think it’s applicable equally on all class of companies. Please correct if I am wrong or give some supporting in relation to your post….

      Thanks

  46. Dear Sir/Ma’am,
    I had worked with T.R.Chadha & Co LLP, Hyderabad for 4 years. My PF forms submitted in my office 6 months back but not deposited and I didn’t get the bonus also for this year. Pls suggest me and provide me the any contact numbers hyderabad.

  47. आज भी भारतीय रेलवे मे गेट मेन 12 घन्टे कार्य करते
    हर घन्टे 2-3 गाड़ी निकलती हैं
    आज भी भारत सरकार बेगारी कराता है।
    यह नियम पुराने समय में जब दिन मे 2-4
    गाड़ीया निकलती थी।
    कब तक सुधरेगे यह नियम

  48. Sir , i m working in a contract base company , the contractor taking 55000 from the employer n paying us only 23700(gross) n in hand we getting only 20340 so is it as per rules they paying us?.
    Actually some one told me that contractor has to payee 70% of total amount whatever they taking from the employers so please guide us , are we eligible for getting 70% amount of total amount?

  49. I RESIGNED RECENTLY FROM MY JOB. THIS IS THE FIRM IN WHICH I WAS WORKING WITH MY BOSS, HIS 2 PARTNERS AND 4 COLLEAGUE.
    AFTER 2 MONTHS OF resigning he spread all over the city no body will hire me for such work which are doing there and said to govt. officer that don’t issue license to me,

    nowadays i am very frustrated and mentally feeling bad. what i do?.

  51. It’s so kind information for all employees .
    I should thankful for ur kind information sir. Thank you so much dear Sir /ma’am .

  55. I region to company in last Aug 2017 but still company not clear my fnf amount and my pf amount.
    What I do for taken the my money.
    Pls suggest

  56. What should we do when company is taking extra work from employees on holidays without pay and the actual timing is different from the real , please suggest

  57. The descriptions are very loosely drafted and there remain some mistakes too. Request you to pay more attention before placing in web. However, thanks for the attempt.

LEAVE A REPLY

Please enter your comment!
Please enter your name here