Top 10 Labour Laws in India you Should Know

India, at present, stands at a place where being a country of superpower is not that difficult if taken care of certain aspects. The major obstacle that stands in between the ambitious projects meant for the country is labor law in India.

This topic of labor law in India and its reforms have always been a topic of a major debate or a topic of major concern. Thus, it’s essential for people working in private as well as public sector (organized or unorganized) to know about the prevailing laws and rights as well as the reforms. Here are some important Acts for labor law in India that everyone should know:

1. The Factories Act, 1948

This respective law was created to defend the rights and interest of the workers to prevent it from any sort of exploitation done by the factory owners. In this law, it’s stated that the employers and the Indian labor law factory owners have to assure some sort of working condition for the employees.
It’s clearly stated that the maximum working hour should not be more than 48 hours a week. And a weekly holiday is a must.

2. The Employees Provident Fund Act, 1947

The Employees Provident Fund (PF) 1952 is sanctioning to make accessible a type of social sanctuary to the commercial employees. This particular Act is applicable for every employee who works in a factory or any other establishment enclosed by the systems and any other than a left out an employee who is permitted to work for it and who have to become a member of the fund from the very date of joining the factory. Under it, you get the welfares such as medical care, retirement pension, housing, education of benefits and financing insurance policy, etc

3. The Maternity Benefit Act, 1961

This act is of a great benefit for the expecting mother or woman. Since its inception women stopped worrying for giving birth to their child as they started getting maternity leaves much easily and as this act protects them and their child. This act aims to safeguard the dignity of parenthood by providing payment for the complete care of the women and her child at the time of maternity when she is off on leave or when she is not working.
NOTE: Every pregnant working woman is qualified for maternity leave, health care, and several other benefits if she has worked with the respective organization for at least 80 days. Moreover, the pregnant ladies are entitled to do light work for 10 weeks more as soon as she joins the office again. And, if the employer is not providing such benefits then the employers could also be imprisoned.

4. The Apprentices Act, 1961

The Apprentices Act is taken care of so that it could develop the old skill by providing theoretical as well as practical training in the market.
Under this act, one is permitted to take casual leave of 12 days, medical leave of 15 days and certain other leaves of 10 days in a year. And one is just required to work for 42 or 48 hours a week.

5. The Workmen’s Compensation Act, 1923

It is one of its kinds that is helpful for the person injured in an accident. The Workmen’s Compensation Act 1923, intends to provide financial protection to the workers as well as their dependents in the form of compensation, in the case of accidental injury.

6. The Payment of Gratuity Act, 1972

Gratuity is a part of the salary received by the employees. The company has to provide them this in the form of gratitude for the services performed by them during their tenure.
It is one of the retirement benefits that the organization gives to its employees at the time of leaving the company. But for this, they have to complete one year of service to get the benefit of gratuity in case of his or her death.

7. The Payment of Wages Act, 1936

It aims at dodging avoidable delay of reimbursement of wages without any sort of deduction from the wages. Under this, the employers have no right to take away any money and they have to pay the reimbursement each month on time.
To your surprise, even if you are terminated from the services you are qualified to take your salary for that particular month.

8. The Industrial Disputes Act, 1947

This labor law in India is found meaningful by many. For example: If you have a dispute with your boss you could settle it down through legal means. The employer can’t throw you out just like that. They have to give a notice of at least 6 weeks before they fire you out.

9. The Payment of Bonus Act, 1965

As a part of profit or productivity the Payment of Bonus Act 1965 targets to provide a bonus to their employees. This act is more helpful for the employees who receive their salary or wages up to Rs.15,000 per month and who are involved in any sort of work. No matter if they are skilled, unskilled, highly skilled, they are entitled to get the bonus if they have worked for at least 30 working days in that particular year. And, do not forget to note that within that time period of one year, you can claim your right to the payable bonus.

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

This act safeguards benefits for the workers who are sick and got injured somehow while they were working.
ESIC is a self-financing security form and a health insurance scheme for all workers. This scheme provides medicinal benefit for the employees and their families. It also delivers dependents benefit for the dependent relative in case of death due to any sort of employment injury. In such a case, the employers should deduct and deposit the money each month in the employee’s A/C. Moreover, they should also grant leave to the protected (insured) employees based on their sickness certificates. And, the employer also has to cover the expenditures in case of a funeral or any other sort of tragedy that happened with their employees.

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by Tripti Malhotra
  1. It is helpful. Theories are made simple and thus easier to remember. I was reading this for preparing on an exam. And it really was insightful. Thank you.
    However the language is something that needs to be made better. Ofcourse it is simple and lucid, but the continuity of the sentences are tiring. Sentences that could be finished are unnecessarily dragged and made hectic.

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