General
India has extensive labor law legislation covering labor
employment and dismissal terms, health and safety and pension obligations.
Labor laws
The government has enacted comprehensive labor law
legislation. The following are the key labor laws:
- The Industrial Disputes Act 1947, which regulates industrial relations including closures and
retrenchment
- The Factories Act 1948, which governs working conditions in
factories. The Act establishes minimum standards for working conditions and
facilities related to manufacturing processes, handling and storage of
materials, working hours etc
- The Minimum Wages Act 1948, which empowers the appropriate
government (central or state) to fix and revise minimum wages and allowances
payable to workers and also to regulate the conditions of work such as hours of
work and overtime
- The Payment of Bonus Act 1965 requires payment of a bonus
to certain categories of employees
- The Payment of Gratuity Act 1972 requires the payment of
gratuity, as recognition of continuous service to an employer, to certain
categories of employees when they leave their employment
- The Employees’ Provident Fund and Miscellaneous Provisions
Act 1952, which applies to workers whose wages do not exceed rs6,500 per month
in applicable industries and establishments. The employer and the employee are
required to make matching contributions to the fund. Effective from November
1995, workers who have put in a minimum of ten years’ eligible service and have
attained the age of 58 years are entitled to a superannuation/retirement
pension
- The Workmen’s Compensation Act 1923, which provides for the
payment to workmen for injuries arising out of or in the course of their
employment
- The Contract Labor (Regulation) Act 1970, which regulates
the employment of contract labor in certain establishments and provides for its
abolition in certain circumstances
- The Employees State Insurance Act 1948, which provides for
certain benefits to employees in the case of sickness, maternity and employment
injury
- The Industrial Employment (Standing Orders) Act 1946, which
requires employers in industrial establishments formally to define conditions
of employment under them.