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Labour Laws for Industrial Employees

1. Payment of Wages Act, 1936

  • Employees must be paid on time (before 7th of the next month).
  • Wages to be paid in cheque/bank transfer (Not cash) 
  • Salary Slips Are Mandatory!
  • All employees must receive monthly salary slips.
  • No unauthorized deductions (only fines, absence, advances, etc. allowed).
2. Minimum Wages Act, 1948
  • Employees must be paid at least
  • the government-notified minimum wages.
  • Minimum wages include basic pay + cost of living allowance (DA).
  • Rates revised periodically to adjust for inflation.
3. Payment of Bonus Act, 1965
  • Profit Sharing with Workers Applicable to establishments with 20+ employees.
  • Bonus eligibility → employees earning ≤ ₹21,000/month.
  • Minimum bonus = 8.33% of wages, Maximum = 20% of wages.
4. Equal Remuneration Act, 1976
  • Equal Pay for Equal Work 
  • No gender-based discrimination in wages.
  • Equal pay for men & women doing same/similar work.
  • Prohibition on discrimination in recruitment, promotions, or training.
5. Shop & Establishment Act

Working Hours:
  • Max 9 hours/day, 48 hours/week.
  • Weekly off & public holidays must be provided.
  • Overtime wages at twice the normal rate.
  • Casual leave, sick leave, earned leave
  • Maternity leave benefits for women employees.
  • Maintain attendance, wage, and leave registers.
  • Issue appointment letters to employees.
6. Maternity Benefit Act, 1961
  • 26 weeks of paid maternity leave (for up to 2 children).
  • 12 weeks of maternity leave (for 3rd child onwards).
  • 12 weeks leave for adoptive & commissioning mothers.
  • Up to 8 weeks leave can be taken before delivery.
  • No termination during maternity leave.
  • Nursing breaks allowed till child is 15 months old.
  • Work from home option (depending on role & agreement).
7. Employees' Provident Funds (EPF) Act, 1952
  • Mandatory for companies with 20+ employees.
  • Employer & Employee contribute 12% each.
  • Employee can contribute more through Voluntary PF (VPF).
  • PF amount earns annual interest (declared by EPFO).
  • Withdrawal allowed at retirement (58 years) or partial withdrawal for housing, education, illness, etc.UAN (Universal Account Number)ensures portability across jobs.
  • EPF enjoys tax-free status
8. ESI Act, 1948
  • Applicable to establishments with 10+ employees, covering workers earning up to ₹21,000/month.
  • Contribution: Employee 0.75% + Employer 3.25% of wages.
  • Provides medical, sickness, maternity, disablement, and dependents' benefits.
  • Covers employee + family (dependents).
  • Managed by Employees' State Insurance Corporation (ESIC).
9. Payment of Gratuity Act, 1972
  • Applicable to establishments with 10 or more employees.
  • Employee becomes eligible after 5 years of continuous service (except in case of death/disablement).
  • Formula: (Last Salary x 15 days x No. of Years) / 26.
  • Maximum gratuity payable = ₹20 lakhs (tax-free limit).
  • Payable on retirement, resignation, death, or permanent disability.
  • Must be paid within 30 days of resignation
10. Industrial Disputes Act, 1947
  • No wrongful termination allowed.
  • 1-month notice or compensation must be given to employees.
  • Deals with settlement of industrial disputes.
  • Covers strikes, lockouts, layoffs, retrenchment, closure.
  • Mass layoffs or closure of large establishments need government approval.
  • Aims to maintain industrial peace & protect worker rights.
11. Contract Labour Act, 1970
  • Companies with 20+ contract workers must register.
  • Contract employees must get minimum wages & benefits.
  • Aims to regulate and prevent exploitation of contract workers.
12. POSH Act, 2013 (Prevention of Sexual Harassment at Workplace)
  • Applicable to all workplaces (organized & unorganized, private & government).
  • Covers all employees (permanent, temporary, interns, contract workers).
  • Every organization with 10+ employees must form an Internal Complaints Committee (ICC).
  • Defines sexual harassment → physical contact, unwelcome advances, requests for sexual favors, hostile work environment.
  • Provides confidential complaint process, inquiry & action within 90 days.
  • Employers must ensure awareness, training & safe workplace.
13. Workmen's Compensation Act, 1923
  • Workplace Injury Compensation
  • Provides compensation to workers for injury, disability, or death due to employment.
  • Employer is liable to pay compensation → medical expenses + monetary benefit.
  • Aims to ensure financial protection for workers & families.
14. Apprentices Act, 1961
  • Companies can hire apprentices (trainees) to teach them skills.
  • The apprentice signs a training contract with the employer.
  • Apprentices get a stipend (pocket money), not full salary.
  • The company must give them proper training and safety.
  • After training, they get a certificate but the company is not bound to give a job.

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