Labour Laws Every Indian Employee Must Be aware of

According to the United Nations, India has the highest youth population. We now stand where the dream of becoming a supereconomy seems a reality. A major obstacle that is standing between this ambitious project and reality is the Indian labour laws. The Labor laws and their acts have always been controversial; therefore, in such a scenario, it now becomes mandatory that every employee in organised and Non-organized sectors must be aware of current labour laws and reforms. In 2016, The Global Rights Index, which the International Trade Union Confederation annually publishes, ranked India as one of the ten worst countries for its employees (working people), which is undoubtedly a shocking fact. Violence against employees, large-scale exclusions of workers, and arrests were some of the main reasons for India’s poor rank. Indian labour laws have been a topic of controversy since the beginning. In such a scenario, it becomes crucial for an employee to be aware of these labour laws; here is our list of labour laws every Indian employee must be mindful of:

List of Labor Laws Every Indian Employee Must be Mindful of:

  • The Factories Act: This act was made to prevent the exploitation of factory workers by their employers. According to this act, both the employer and the employee must fulfil certain working conditions. The maximum working hours should not be more than 48 hours a week, and one holiday per week was also made mandatory.
  • The Employees Provident Fund Act: This act was made to provide some social security to employees, and it applies to every employee who works in any establishment in any sector (organized/ unorganized). Under this act, employees get welfare benefits such as medical care, housing, retirement funds, education, financing benefits, etc.
  • Maternity Benefit (Amendment) Bill: This act was established in 1961 and provides benefits to expecting mothers. Later, a few amendments were made to offer more employee benefits. It was made to protect the employment of female employees during maternity leave, providing them with “maternity benefits” – fully paid leaves. So that she can take care of herself and her child without stressing over her work. Later, a few new amendments were made, increasing the leaves’ duration. A few more claws, like leaves for adopted children, commissioning mothers, work-from-home options, etc., were added to the act.
  • The Apprentices Act: The main purpose of this act is to nurture technically qualified candidates by giving them practical training. As per the basic scheme of this act, every employer must provide training to its employees, intending to make them sound in the required skills. This scheme applies to engineering, non-engineering, technical, or vocational courses. The employer must provide all the necessary facilities for training, or even if they want, they can outsource the training to an approved agency. The employer is required to pay to its candidates. After completing the training, the candidates may appear for a test (optional) conducted by the National Council. Employers are not bound to recruit candidates after the completion of training; they can have an internal policy to recruit candidates after completion. Recruitment is not mandatory after the completion of the training.
  • The Workmen’s Compensation Act: This act was established to provide financial protection in the form of compensation to employees who have been injured in an accident.
  • The Payment of Gratuity Act: The gratuity fund is money that is generally given to the employee by the employer as a gratitude for the service he/she has done for the organization. It’s one of the retirement benefits that the company gives to its employees; however, the employee must stay in the company for a certain time (except in case of his/her death) to receive the amount.
  • The Payment of Wages Act: This act was made to assure salary without any deductions. As per this act, the employer can’t take away the money he/she is entitled to pay to the employee. This act also ensures timely salary payments from the employer. Apart from this, according to this act, an employee must know that even if he/she is fired from the company, he/she is still eligible to take a salary for that month.
  • The Industrial Disputes Act: This act was made to protect employees who have a dispute with their employers. It also ensures that no employer can just terminate an employee without giving notice. They have to provide a certain period of notice before terminating an employee.
  • The Payment of Bonus Act: This act makes it mandatory for employers to provide a bonus to their employees. After the employee has stayed in the company for a certain period, they can receive the bonus. This act also gives you the power to claim your rightful bonus from your employer for your services.
  • The Employee State Insurance Act (ESIC): This act was made to protect employees if they are injured at their workplace. ESIC is a self-financing security and health scheme for workers. This scheme provides medical aid to employees and their families.