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4 Labour Laws in India

In 2004, the State of Gujarat amended the Trade Union Action Act to allow for greater labour market flexibility in Gujarat`s special export zones. The law allows companies within the SWZ to dismiss laid-off workers without government permission by providing formal severance and severance pay. [44] The four labour laws – the Wages Code, the Industrial Relations Code, the Social Security Code and the Occupational Health and Safety Act – are intended to replace 29 labour laws. More than 90% of the 50 crore workers in India are in the disorganized sector. And through these codes, the government wants to ensure that they all enjoy the benefits of labor law in terms of minimum wage and social security. Finally, Code 13 of Safety, Health and Working Conditions at Work (SST) summarizes existing labor laws and applies to factories with at least 20 workers if the manufacturing process is carried out using electricity and 40 with electricity if the manufacturing process is carried out without electricity. Summary – This article provides an overview of the provisions of the new labour laws introduced in India and the status of their implementation. The Social Security Code, 2020, which brings together 9 key labour laws related to social security. Since work is a competing issue, the centre and the states must set the rules.

Although the Centre notified the codes in September 2020, no State notified the rules required under these codes. Only 12 States have published the draft rule so far. So once all the states are on board, the codes will be implemented. India`s labour laws were fundamentally updated in the Labour Disputes Act of 1947. [7] Since then, 45 other national laws have expanded or overlap with the 1948 law, and another 200 state laws govern the relationship between the employee and the company. These laws impose all aspects of employer-employee interaction, such as requiring companies to keep 6 attendance records, 10 different overtime pay accounts, and 5 types of annual reports. The scope of labor laws ranges from regulating the level of urinals in workers` washrooms to how often a workplace needs to be washed with lime. [8] Inspectors may inspect the work area at any time and impose fines for violations of labour laws and regulations. The following table compares the labor laws in India with those of China and the United States in 2011. Each state of India may have special labor regulations in certain circumstances. Each state of India establishes its own regulations for the central law. Regulations can vary greatly from state to state.

The forms and procedures used are different in each state. The central government is in the process of simplifying these many state laws into 4 labor laws. This is code 1. salaries, 2. social security and well-being, 3. industrial relations, 4. occupational safety and health and working conditions.<Ref. [1] Workers seeking better conditions and unions campaigning with strikes have often been oppressed and violently repressed.

After gaining independence in 1947, the Indian Constitution of 1950 enshrined in the constitution a number of fundamental labour rights, in particular the right to join and become active in a trade union, the principle of equality in the workplace and the desire to create a living wage with decent working conditions. Indian labour law distinguishes between people who work in “organized” sectors and people who work in “unorganized sectors”. [Citation needed] The laws list the rights to which various labour rights apply. For persons who do not enter these sectors, general contract law applies. [Citation needed] A permanent employee may only be dismissed for actual misconduct or habitual absence. [38] The Labour Disputes Act (1947) requires companies employing more than 100 workers to obtain government approval before they can lay off or close employees. [12] In practice, employee dismissal permits are rarely granted. [12] Indian law requires a company to obtain permission to dismiss workers who have closed factories, even if it is necessary for economic reasons. The government can grant or deny permission to close, even if the company loses money in the operation.

[39] The Industrial Relations Code consolidates three existing laws and extends the definition of employee to persons employed on a manual, technical, operational and bureaucratic basis. In addition, people employed in a monitoring function and less than Rs. Earn 18,000 per month, enter the definition. The Industries (Regulation and Development) Act 1951 stipulated that under its first list, as well as laws promulgated by the state government, manufacturing industry was subject to common regulations of the central government. It reserved more than 600 products, which can only be manufactured in small businesses, regulated who was allowed to enter these stores and, most importantly, used the number of employees per company for the products listed. The list included all key technologies and industrial products in the early 1950s, including products ranging from certain steel products, fuel derivatives, engines, certain machinery, machine tools to ceramics and scientific equipment. [43] The Social Security Code comprises nine laws and authorises the Centre to notify various social security schemes such as the EPF, EPS and ESI for the benefit of workers in all sectors. It also allows the center to design all other programs for the self-employed, disorganized workers, gig workers and platform workers, as well as their family members. In the Indian Constitution of 1950, Articles 14 to 16, 19(1)(c), 23-24, 38 and 41-43A directly concern workers` rights. Article 14 stipulates that all must be equal before the law, article 15 explicitly states that the State shall not discriminate against citizens, and Article 16 extends the right to “equal opportunities” in employment or appointment under the State. Article 19(1)(c) grants everyone a specific right to `form associations or trade unions`. Article 23 prohibits trafficking in human beings and forced labour, while article 24 prohibits the employment of children under the age of 14 in a factory, mine or “any other dangerous occupation”.

In India, several laws have been enacted to promote working conditions. There are 44 labour-related laws enacted by the central government, of which 29 laws are combined into four new labour laws. The four new labour laws are as follows: The implementation of the new labour laws in India appears to have been delayed. A press release from the (Indian) Ministry of Labour and Employment dated 21 March 2022 contains an update on the status of the new labour laws, but contains no information on their “effective date”. India`s four new labour laws could soon be implemented. The new codes, which include the Wage Code, the Industrial Relations Code, the Social Security Code and the Code of Safety, Health and Working Conditions at Work, will bring many new changes for workers. Once these new codes come into effect, they will help employees obtain their full and final payment of wages and taxes within two days of the employee`s last day of work. Not only that, but many other changes are also being made, from take-home pay to working hours. With the Industrial Relations Act 2020, laws relating to trade unions, conditions of employment in the workplace or in the enterprise, investigation and settlement of labour disputes have been consolidated and amended. The law combines and simplifies 3 central labour laws. The West Bengal government has revised its labour laws and made it virtually impossible to close a loss-making factory.

[44] West Bengal law applies to all state enterprises employing 70 or more people. [45] People can witness one of the biggest changes in the case of a well-deserved vacation. Currently, the government ministry grants 30 sheets per year. People who work as defence contractors receive 60 public holidays a year.