LABOUR LAWS

IN
INDIA
 THE FACTORIES ACT, 1948
•The factories act is one of the most important labour laws in India. It sets the safety standards for workers employed in
factories. The Factories Act lays out guidelines and safety measures for using machinery, and with its strict compliance, it
also provides owners with instructions. When factory workers were taken advantage of and exploited by paying them low
wages, the Factories Act was passed. It is stated in the Act that the purpose of the Factories Act is to amend and consolidate
the legal framework governing factory labour. The Bhopal gas tragedy case (1984) raised public awareness of factory
pollution and risks, necessitating government action to allow legislation amendments. The Factories Act, 1948, mandates the
payment of minimum wages to the workers by prescribing a fixed pay rate. An employer shall pay their employees at least
the prescribed minimum wage rate. If an employee is paid less than minimum wage, the employer should pay that employee
at least what the law requires. This Act reminds employers that any failure on their part to comply with its provisions will
have serious legal consequences. The Act requires employers to allow a weekly holiday to their workers. It further makes it
obligatory for the employer to provide proper sanitary facilities and a clean potable water supply in the factory or workplace.
Strict action will be taken against the employer if they fail in providing these facilities to the workers. Employers are also
required to set up first aid boxes in their factory, store first aid records, and ensure proper arrangements for transporting
injured workers to a hospital or in-house medical facilities. Apart from these, the Act has several relevant provisions defining
the duty of an employer who has in-house medical facilities and the duty of a doctor who is an official medical officer at the
factory. The Act also defines the procedure to be followed if a complaint of any kind is received by or made to the
government’s labour department. The objectives of this act is to protect the health and safety of workers, to ensure that
factories adhere to global best practices in the factories,to provide a fair and decent livelihood for all working-class
people,to reduce any social or industrial tensions. The Factories Act, 1948, was further amended in 1951, 1960, 1961,
and 1972. In addition to this amendment, the Rules of 1951, 1960, and 1961 have been amended. The Factories Act was
applied to the newly formed States in 1965 by the Chief Secretaries of these States.
 THE MINIMUM WAGES ACT, 1948

The minimum wages act, 1948, is the minimum amount that an organisation has to pay a
particular employee (skilled or unskilled) for a specific job at a particular time that any
contract agreement or collective agreement cannot reduce. The Minimum Wage Act was first
implemented in 1948. The Act also created the Tripartite Committee of Fair Wage. This
committee was formed to set the minimum wage guidelines in India. The Act provides that
the government will fix the minimum wage rate and revise it every five years. The act was
amended in 2000. The changes included a change in the floor level for minimum wages,
provides for higher minimum wages for workers with disabilities and states that in case of
non-payment of wages, the authority must pay ten times the difference. The Minimum
Wages Act, 1948, for the most part, indicates the lowest pay permitted by law rates on an
everyday basis and stretches out to the whole nation. It is overhauled every five years, but
there is an arrangement to increment the dearness allowance every two years. ILC first
suggested the standards for fixing and amending minimum wages.
Under the minimum wages act, state and central governments can fix and reexamine the
least wages.

• The demonstration determines that the “suitable” government ought to improve the
wages; for example, if the wages to be fixed are according to any power of the central
government or railway organisation, then the central government fixes it.

• Assuming that the compensation rate is to be fixed or amended for planned work, the
separate state legislatures set it.

• The centre fixes the national floor level minimum wage that is lower than most states’
individual least wages.

• The vagueness and cross-over in the locale of government levels have caused
discussions and contentions.

• One of such discussions spins around fixing wage paces of MGNREGA plot and a
business ensure drive by the central government.
The minimum wage act 1948 is significant for employers and employees. It will help
reduce the chances of exploitation and help the worker provide for his family. In addition
to this, the act specifies that the government has the power to fix the minimum rate. Its
regulations also require the government to review the rates every five years.
THE PAYMENT OF WAGES ACT,1936
The Payment of Wages Act of 1936 (Act) is primarily intended to help industrial workers
who do not earn a lot of money. The Act’s principal goal is to prohibit improper wage
deductions and eliminate unnecessary wage delays. The State Government may extend the
provisions to any class of employees in any establishment or class of establishments by
issuing a notification. The Act provides for the regular and timely payment of wages and
the prevention of improper deductions from wages and arbitrary fines. The act stipulates
that a worker cannot contract out of any privilege or right conferred upon him by the Act.
The major goal of the Act is to control the timely payment of a few types of employees who
operate in the industry. he act has established various rules and regulations for the
betterment and effective operation of the industry. The legislation allows workers to work
freely without fear of being hampered by pay or salary delays. The code has paved the road
for employees to work with dignity, and the necessary mechanisms have been established.
The act’s provisions aid in the development of trust between the employer and the
employee, allowing for optimum production to be attained through employee motivation.
 THE EMPLOYEES’ PROVIDENT FUNDS AND
MISCELLANEOUS PROVISIONS ACT, 1952
The Employee Provident Funds, 1952 is a beneficial legislation enacted for the betterment of the future of industrial
worker:

1. On his retirement.

2. For his dependents in case of death of employment .

the object of this Act is to inculcate, non withdrawable financial benefit, the sum is payable normally on retirement
or on the death of the employee. The employer is under a statutory obligation to deduct a specified percentage of
the contribution from the employee’s salary for provident fund. The employer should also contribute such
percentage for provident fund. An employee who gets more than 15,000 is eligible for getting the provident fund.
This is applicable to:-

3. Every establishment in which 20 or more are employed.

4. Any establishment notified by the central government.

5. Any class of such establishment employing 20 or more. This Act is applicable to home workers held in the
case Mangalore Gandhi Beedi workers V. U.O.I and P.M.Patel V. U.O.I.
Schemes under EPF
1. Employees provident fund scheme 1952
2. Employees deposit linked insurance scheme, 1976
3. Employee’s family pension scheme, 1995
This Act was passed as a social security measure that falls under the category of retirement
funds/emergency withdrawal or advance/insurance. The government passed this Act to
establish a long-term savings programme that would help individuals in retirement,
superannuation, or during any major monetary situation/emergency. The individuals are
enabled to live risk-free and a dignified life with ensured social security. The Employees’
Provident Funds Scheme, 1952 (“the Scheme”). EPF in India is regulated by the Act and the
Scheme. The Act and the Scheme are administered by a tri-partite Board .
 THE EMPLOYEES’ STATE INSURANCE ACT,1948
The Employees’ State Insurance Act incorporates a number of sections, these sections provide
for medical benefits and insurance for any employees working under factories registered under
the ESI Corporation. The Employees’ State Insurance Act, 1948 (ESI), enables the financial
backing and support to the working class in times of medical distress such as:
• Sickness.
• Maternity Leave.
• Disorders(mental or physical).
• Disability.
• Death.
The ESI Act serves as a constitutional instrument because of its practice of providing insurance
and medical insurance.
Employees’ a state insurance act 1948, plays a major role in the welfare of many employees. The functions of this act are as follows:-

 According to the powers of this act, it can invest or take money from the central government sanction for providing better facilities to
employees.

 The Employees state insurance act 1948, can recruit or hire the social security officers to implement practices of the act among the
other bodies of India. These officers have the power to enforce the implementation of practices of this act.

 The Employee’s state insurance act 1948 also collects some amount of money from the compensation of employees to regulate all its
functioning and to facilitate other employees.

 The Director-General of employees states insurance act has the authority to make decisions for facilitating the act’s implementation. He
can also modify the implementation strategies according to the need.

 It is the responsibility of the employee’s state insurance act 1948 to maintain the budget of all expenditures, which are done to provide
compensation and other facilities to the employees.

Benefits the act:-

o Medical Benefit- Along with this, the salary of those employees does not get deducted during the period of their treatment.
o Maternity Benefit-It is the best benefit provided to the women by the employee’s state insurance act 1948. Women who are pregnant get
extra leave before and after their delivery.

o Disablement Benefit-Employees state insurance act 1948 also provides extra benefits to those who are differently abled.
o Insurance Benefit -Employees state insurance act 1948 provides insurance benefits to both government and private employees.
Employees state insurance act 1948 is the legislative body of India which provides enormous benefits to the employees. The central government and the ministry of
labour and employment together regulate the functioning of employees state insurance act 1948. after launching, this act had already provided numerous benefits to
several employees of India