Indian labour law

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Indian labour law refers to laws regulating employment in India. There are over fifty national laws and many more state-level laws.

Traditionally Indian governments at federal and state level have sought to ensure a high degree of protection for workers. So for instance, a permanent worker can be terminated only for proven misconduct or for habitual absence.[1] In Uttam Nakate case, the Bombay High Court held that dismissing an employee for repeated sleeping on the factory floor was illegal - a decision which was overturned by the Supreme Court of India. Moreover, it took two decades to complete the legal process. In 2008, the World Bank has criticised the complexity, lack of modernisation and flexibility in Indian regulations.[2][3]

Contents

Collective labour law [edit]

  • The Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down.[4] In practice, permissions for firing employees are seldom granted.[4]
  • Trade Unions Act 1926
  • Provisions of the Factories Act, 1948

Individual labour law [edit]

All India Organisation of Employers points out that there are more than 55 central labour laws and over 100 state labour laws.[1]

  • The Contract Labour Act (1970) aims at regulating employment of contract labour so as to place it at par with labour employed directly.[4] Women are now permitted to work night shifts too ( 10pm to 6am).[4]
  • Minimum Wages Act 1948
  • Weekly Holidays Act 1942
  • Beedi and Cigar Workers Act 1966
  • The Payment of Wages Act, 1936
  • The Workmen’s Compensation Act, 1923
  • The Factories Act, 1948
  • The EPF Act
  • The Bonus Act
  • The ESI Act

International comparison of Indian labour laws [edit]

The table below contrasts the labour laws in India to those in China and United States, as of 2011.

Relative regulations and rigidity in labour laws[5]
Practice required by law  India  China  United States
Minimum wage (US$/month) 75
Minimum rest while at work 30 minutes per 5 hour None None
Maximum overtime limit 200 hours per year 1 hour per day None
premium time for overtime 100% 50% 50%
Dismissal due to redundancy allowed? Yes, if approved by government Yes, without approval of government Yes, without approval of government
Government approval required for 1 person dismissal Yes No No
Government approval required for 9 person dismissal Yes No No
Government approval for redundancy dismissal granted Rarely[6][7] Not applicable Not applicable
Dismissal priority rules regulated Yes Yes No
Severance pay for redundancy dismissal
of employee with 1 year tenure		 2.1 week salary 4.3 week salary None
Severance pay for redundancy dismissal
of employee with 5 year tenure		 10.7 week salary 21.7 week salary None

See also [edit]

Notes [edit]

  1. ^ a b Parul Sharma (February 2007). "Split Legal Regime in India‘s Labour Laws". 
  2. ^ "India Country Overview 2008". World Bank. 2008. 
  3. ^ "World Bank criticizes India's labor laws". 
  4. ^ a b c d Aditya Gupta. "How wrong has the Indian Left been about economic reforms?". 
  5. ^ "Employing Workers - 2011 data (based on input from ILO, OECD, local governments and private employers)". The World Bank. 2012. 
  6. ^ Gordon, Li, Xu (August 12 2010). "Labor regulation, economic complexity, and the China-India gap". Hamilton University. 
  7. ^ Adhvaryu, Chari and Sharma (December 2009). "Firing costs and flexibility:evidence from firms employment responses to economic shocks". Yale University. 

References [edit]

External links [edit]

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