Labour Laws

Sections Topics Page No.

SECTION-A Industrial Relations Laws 2-7

SECTION-B Wages & Bonus Laws 8-15

SECTION-C Social Security Laws 16-23

Working Conditions & Welfare
SECTION-D Laws 24-37

SECTION-E Miscellaneous Acts 38-41

SECTION-F Latest Labour Codes 42-44

DISCLAIMER
The Labour Laws Handbook developed by the CRPC – Placement Cell of University
Business School, Panjab University Chandigarh, is designed solely for internal
educational and informational purposes for the HR batch.
While external sources have been referenced to compile this material, CRPC has not
independently validated or recalculated the data from these references. Consequently,
CRPC cannot be held responsible for any errors, omissions, or inaccuracies in the
content. Although we have made every effort to ensure the accuracy of this document
through proofreading and quality checks, the potential for mistakes cannot be entirely
ruled out. Readers are advised to verify the information and seek additional resources or
professional advice as needed.
It is important to note that this handbook is not intended to be the sole reference for
labour law-related preparation. While it serves as a strong foundation, we highly
encourage readers to explore further resources, case laws, and legal updates on the topics
covered to gain a comprehensive and up-to-date understanding.

1
Section A) Industrial Relations Laws (3)
No. 1= Industrial Disputes Act, 1947
Introduction
The Industrial Disputes Act, 1947 was enacted to provide a legal framework for the
investigation and settlement of disputes between employers and workmen. It aims to
promote industrial peace, secure industrial harmony, and ensure fair terms and conditions of
employment.
Commencement
1st April, 1947
Applicability (Section 1)
• Extends to the whole of India.
• Applies to all industrial establishments irrespective of the number of workmen
employed.
• Not applicable to armed forces, police, or certain government services.
Important Definitions (Section 2)
Industrial Dispute – Any dispute between employers and employers, employers and
• workmen, or workmen and workmen, connected with employment or terms of
• employment.
Workman – Any person employed in an industry for hire/reward, excluding those in
• managerial/administrative capacity or supervisory roles above the wage limit.
Industry – Any systematic activity carried out with cooperation between employer
• and employee for production/supply of goods or services.

Authorities under the Act

• Works Committee – Promotes good relations between employer and workmen
• (Section 3).
• Conciliation Officers – Mediate in industrial disputes (Section 4).
• Boards of Conciliation – Encourage settlement of disputes (Section 5).
• Labour Courts – Adjudicate matters in Second Schedule (Section 7).
• Industrial Tribunals – Adjudicate matters in Second & Third Schedule
(Section 7A).
• National Tribunals – Deal with disputes of national importance (Section 7B).
Settlement of Disputes
• Conciliation – Efforts to bring parties to an amicable settlement.
• Adjudication – Legal determination by Labour Court, Tribunal, or National
Tribunal.

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• Voluntary Arbitration – Parties agree to refer dispute to an arbitrator (Section
10A).
• Reference of Disputes (Section 10)
• Appropriate government may refer the dispute to the proper adjudicating
authority,
• depending on the nature and scope of the dispute.
• Strikes and Lockouts
• Prohibited in public utility services without 14 days’ notice (Section 22).
• Illegal if commenced in violation of Sections 22, 23, or during
• conciliation/adjudication proceedings.
• Lay-off, Retrenchment, and Closure
• Lay-off – Temporary inability to employ due to shortage of raw materials,
power, etc.
(Section 2(kkk), 25C).
• Retrenchment – Termination of workman for any reason other than
punishment
(Section 2(oo), 25F).
• Closure – Permanent shutdown of an undertaking (Section 25FFF).
Penalties (Sections 25Q, 26, 31)
• Illegal strikes/lockouts: Imprisonment up to 1 month and/or fine.
• Instigation of illegal strikes/lockouts: Imprisonment up to 6 months and/or
fine.
• Breach of settlement/award: Fine up to ₹100 per day.
Other Relevant Provisions
• Awards and settlements are binding for the period specified (Section 19).
• Recovery of money due from employer (Section 33C).
• Protection of workmen during pendency of proceedings (Section 33).

Link to the Industrial Disputes Act, 1947:

https://www.indiacode.nic.in/bitstream/123456789/1533/1/A1947-14.pdf

3
No. 2= Trade Unions Act, 1926
Introduction
The Trade Unions Act, 1926 was enacted to provide for the registration and protection
of
trade unions, and to define the rights, liabilities, and immunities of registered trade
unions
in India. The Act encourages the formation of trade unions to promote industrial
harmony
and safeguard the interests of workers.
Commencement
1st June, 1927
Applicability (Section 1)
• Extends to the whole of India.
• Applies to all types of trade unions of workers and employers.
Important Definitions (Section 2)
• Trade Union – Any combination of workmen or employers formed
primarily to regulate relations between workmen and employers, or between
workmen and workmen, or between employers and employers.
• Registrar – Appointed by the appropriate government to exercise powers
under the
• Act.
Registration of Trade Unions (Sections 4–9)
• Minimum 7 members required to form a trade union.
• At least 10% or 100 workmen, whichever is less, engaged in the
establishment/industry must be members.
• Application to the Registrar with rules of the union.
• Rules must include name, objectives, membership conditions, subscription
rates, maintenance of funds, audits, and dissolution.
• Registrar may issue a certificate of registration, which is conclusive proof.
Rights and Liabilities of Registered Trade Unions (Sections 15–17)
• Right to hold property, enter into contracts, and sue/be sued.
• Immunity from criminal conspiracy charges in trade disputes (Section 17).
• Immunity from civil suits for certain acts done in furtherance of a trade
dispute (Section 18).

Duties of Registered Trade Unions (Section 28)

• Submit annual returns to the Registrar regarding membership, funds, and
activities.
• Maintain accounts, records, and registers as prescribed.

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Amalgamation of Trade Unions (Section 24)
• Two or more registered trade unions may amalgamate with the consent of at
least
• 50% of members who vote, and by a majority of those voting.
Cancellation of Registration (Section 10)
• On application of the trade union, or if the union has obtained registration
by fraud, ceased to exist, or violated provisions of the Act.
Penalties (Sections 31–33)
• Failure to submit returns: Fine up to ₹5, and ₹5 per day for continuing
offence.
• Supplying false information: Fine up to ₹500.
Other Relevant Provisions
• Section 29: Power to make regulations for administration.
• Section 30: Protection of office-bearers acting in good faith.

Link to the Trade Unions Act, 1926:

https://www.indiacode.nic.in/bitstream/123456789/1534/1/A1926-16.pdf

5
No.3 = Industrial Employment (Standing Orders) Act, 1946
Introduction
The Industrial Employment (Standing Orders) Act, 1946 was enacted to require
employers in
industrial establishments to clearly define and make known the terms and conditions of
employment for workmen. This ensures uniformity, reduces disputes, and protects
workers’
rights by providing transparency in service conditions.
Commencement
Came into force on 23rd April, 1946.
Applicability (Section 1)
• Applies to every industrial establishment with 100 or more workmen (can
be reduced to 50 by State Government notification).
• Initially applicable to industrial establishments under the Factories Act; now
extended to various categories by notification.
Important Definitions (Section 2)
• Standing Orders – Written rules relating to matters in the Schedule.
• Certifying Officer – Labour Commissioner/authority appointed to certify
Standing Orders.
• Workman – Same meaning as under the Industrial Disputes Act, 1947.
Matters to be Covered (Schedule)
Standing Orders must cover:
• Classification of workmen – permanent, temporary, apprentices,
probationers, badlis, etc.
• Manner of intimating workmen about working hours, holidays, paydays,
wage rates.
• Shift working rules.
• Attendance and late coming.
• Leave and leave application process.
• Entry/exit and search rules.
• Termination and notice requirements.
• Suspension/dismissal for misconduct and disciplinary action procedure.
• Grievance redressal mechanism.
Procedure for Certification (Sections 3–5)
• Employer prepares draft Standing Orders covering all schedule matters.
• Sends to Certifying Officer within 6 months of applicability.
• Certifying Officer forwards a copy to trade union or workmen’s
representatives.
• Objections can be filed within prescribed time.
• Hearing by Certifying Officer.
• Certification of Standing Orders (with or without modifications).
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 • Certified copy sent to employer and workmen.
Operation & Modification (Sections 7–10)
• Come into force 30 days after certification (7 days in case of appeal).
• Remain in force until amended.
• Modifications allowed after 6 months from coming into operation,
following same
• certification procedure.
Model Standing Orders (Section 15)
• Government may prescribe Model Standing Orders.
• Apply automatically if no certified orders exist until certification is
completed.

Penalties (Section 13)

• Failure to submit draft Standing Orders: Fine up to ₹5,000 and ₹200 per day
for continuing offence.
• Contravention of certified Standing Orders: Fine up to ₹100 and ₹25 per day
for continuing offence.
Other Relevant Provisions
• Section 14: Rule-making power of the appropriate government.
• Disputes about interpretation of Standing Orders to be referred to Labour
Court (Section 13A).

Link to the Industrial Employment (Standing Orders) Act, 1946:

https://www.indiacode.nic.in/bitstream/123456789/1538/1/A1946-20.pdf

7
Section B) Wages & Bonus Laws(4)

No. 1= Payment of Wages Act, 1936

Introduction:
The Payment of Wages Act, 1936, was enacted during British India to regulate the
timely disbursement of wages to employees and to prevent unauthorized
deductions. At the time, wage exploitation and delays were common, particularly for
industrial and factory workers. The Act aimed to protect workers’ rights, improve
employer accountability, and maintain industrial harmony by ensuring prompt wage
payments and transparency.
Objective:
This Act was introduced to regulate the payment of wages to certain classes of
employed persons. Its primary goal is to ensure that wages are paid on time, without
unauthorized deductions, and through approved modes. It protects vulnerable
workers from being exploited by delays, non-payment, or arbitrary fines.
Applicability:
Initially applied to employees earning below ₹1,600 per month; now extended to
those earning ₹24,000 per month (subject to updates).
Applies to:
• Factories
• Railways
• Industrial & construction undertakings
• Mines
• Establishments notified by the government
Key Provisions:
1. Responsibility for Payment (Section 3):
• The employer or an authorized representative is responsible for wage payments.
2. Wage Period (Section 4):
• Wages must be paid at regular intervals (daily, weekly, fortnightly, or monthly).
• Cannot exceed one month.

3. Time of Payment (Section 5):

• If employees < 1,000: wages must be paid before the 7th of the next month.
• If > 1,000 employees: before the 10th. On termination: within 2 working days.

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4. Mode of Payment (Section 6):
• Payments must be made in currency notes, cheques, bank transfers, or digital
• methods.
5. Permissible Deductions (Section 7–13):
Only specific deductions are allowed:
• Absence from duty
• Fines (not exceeding 3% of wages)
• Damage or loss caused by negligence
• House rent, recovery of advances
• Provident Fund, Income Tax, Court Orders
• Total deductions must not exceed 50% of total wages (or 75% for co-operative
society dues).
6. Fines (Section 8):
• Must be approved by authorities.
• Only imposed for pre-approved acts of misconduct.
• Cannot exceed 3% of monthly wages.
7. Redressal of Grievances (Section 15):
• Workers can approach a designated authority if wages are withheld or illegal
deductions are made.
• Compensation up to ₹7,500 can be ordered.
8. Record-Keeping:
• Employers must maintain detailed registers of wages, deductions, and fines for
inspection.
9. Penalties:
• Imprisonment up to 6 months or fine up to ₹10,000 for repeated violations.
Conclusion:
The Payment of Wages Act, 1936 acts as a fundamental pillar of labour welfare in
India. It promotes transparency, regularity, and protection in wage-related matters. In
a developing economy, this Act strengthens workers’ rights and enhances trust
between employees and employers — reducing the scope of exploitation and
increasing workforce morale.

Link to the Payment of Wages Act, 1936:

https://www.indiacode.nic.in/bitstream/123456789/8324/1/payment_of_wages_act_1936.pdf

9
No. 2= Minimum Wages Act, 1948
Introduction
The Minimum Wages Act, 1948 was enacted to provide for fixing minimum rates of wages in
certain employments, ensuring that workers are paid fairly and not exploited. It empowers
the government to determine minimum wages for scheduled employments and mandates
timely payment.
Commencement
15th March, 1948
Applicability (Section 1)
• Extends to the whole of India.
• Applies to employments specified in the Schedule to the Act (“scheduled
employments”).
• Both the Central Government and State Governments can fix and revise minimum
wages for employments under their jurisdiction.
Important Definitions (Section 2)
• Wages – All remuneration in monetary terms, payable for work done, including
house rent allowance, but excluding bonus (profit-linked), PF contributions,
gratuity, and traveling allowance.
• Scheduled Employment – An employment specified in the Schedule to the Act or
added by notification.
• Employer – Any person who employs one or more employees in any scheduled
employment.
Fixation & Revision of Minimum Wages (Sections 3–4)
1. Appropriate Government shall fix:
• Minimum rates of wages for scheduled employments.
• Minimum rates for different classes of work, employees, localities.
2. Minimum wages may be fixed by:
• Time rate (per hour/day/month).
• Piece rate (per unit of output).
• Guaranteed time rate for piece work.
• Overtime rate.
• Revised at least once every 5 years.
Procedure for Fixing Wages (Section 5)
• Two methods:
• Committee Method – Government appoints committees to hold inquiries and
make recommendations.
• Notification Method – Government publishes proposals and invites
objections/suggestions.

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Payment of Overtime (Section 14)
• Employees working beyond normal working hours are entitled to overtime wages
at double the ordinary rate.
Wages in Kind (Section 11)
• Permitted only if customary or authorized by the appropriate government.
• Value of wages in kind or concessions in respect of essential commodities to be
computed as prescribed.
Maintenance of Registers & Records (Section 18)
• Employers must maintain registers of wages, work performed, and other
prescribed details.
Claims (Section 20)
• Employee or authorized representative can apply to the Authority for recovery of
unpaid wages or short payment.
• Authority may order payment plus compensation up to 10 times the shortfall.
Penalties (Section 22)
• Paying less than minimum wages or contravening provisions: Imprisonment up to
6 months and/or fine up to ₹500 (higher in some states).
Other Relevant Provisions
• Section 19: Appointment of Inspectors for enforcement.
• Section 27: Power to add employments to the Schedule.

Link to the Minimum Wages Act, 1948:

https://www.indiacode.nic.in/bitstream/123456789/1535/1/A1948-11.pdf

11
No.3= Payment of Bonus Act, 1965
Introduction
The Payment of Bonus Act, 1965 was enacted to provide for the payment of bonus to
employees based on profits of the establishment or on the basis of production/productivity.
It aims to bridge the gap between wages and living costs, motivate employees, and ensure
equitable sharing of the prosperity of the establishment.
Commencement
25th September, 1965
Applicability (Section 1)
• Extends to the whole of India.
• Applies to: Every factory, Every other establishment in which 20 or more persons
are employed.
• Once applicable, it continues even if employee count falls below 20.
Important Definitions (Section 2)
• Employee – Any person (other than an apprentice) earning up to ₹21,000 per
month engaged in skilled, unskilled, manual, supervisory, managerial,
administrative, technical, or clerical work for hire or reward.
• Wages – All remuneration capable of being expressed in money, including
allowances, but excluding bonus, PF contribution, overtime, and certain other
allowances.
Eligibility for Bonus (Section 8)
• Must have worked for at least 30 working days in the accounting year.
Disqualification from Bonus (Section 9)
• Dismissal for: Fraud, Riotous or Violent Behaviour, Theft, Misappropriation or
sabotage of Property.
Minimum and Maximum Bonus (Sections 10–11)
• Minimum Bonus: 8.33% of wages or ₹100 (₹60 if below 15 years), whichever is
higher, irrespective of profit or loss.
• Maximum Bonus: 20% of wages.
Calculation of Bonus (Section 12)
• For calculation purposes, wage ceiling is ₹7,000 per month or the minimum wage
for the scheduled employment (whichever is higher).
Allocable Surplus (Sections 5–6)
• Gross Profit: Calculated as per the First Schedule (for banking companies) or
Second Schedule (for others).
• Available Surplus = Gross Profit – Prior Charges (like depreciation, development
rebate, direct taxes).

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 • Allocable Surplus = 60% of available surplus (67% for companies not required to
pay income tax).
Set-on and Set-off (Section 15)
• Set-on: Excess allocable surplus over the maximum bonus (20%) is carried
forward up to 4 years.
• Set-off: Deficiency in allocable surplus (less than minimum bonus) is carried
forward up to 4 years.
Time Limit for Payment (Section 19)
• Bonus must be paid within 8 months of the close of the accounting year.
• May be extended by government notification for sufficient cause.

Maintenance of Registers and Records (Section 26)

• Employers must maintain prescribed registers for: Computation of allocable
surplus, Details of bonus payments, Annual returns to the authorities.
Inspectors and Enforcement (Sections 27–28)
• Inspectors appointed to examine records, enter premises, and ensure compliance.
Penalties (Section 28)
• Contravention: Imprisonment up to 6 months and/or fine up to ₹1,000.
Other Relevant Provisions
• Section 32: Certain classes of employees and establishments exempted (e.g.,
employees of RBI, LIC, seamen, universities, charitable institutions).
• Section 36: Power of the appropriate government to make rules for carrying out
provisions.
• Section 39: Protection of action taken in good faith.

Link to the Payment of Bonus Act, 1965:

https://www.indiacode.nic.in/bitstream/123456789/1663/1/A1965-21.pdf

13
No.4= Equal Remuneration Act, 1976
Introduction
The Payment of Bonus Act, 1965 was enacted to provide for the payment of bonus to
employees based on profits of the establishment or on the basis of production/productivity.
It aims to bridge the gap between wages and living costs, motivate employees, and ensure
equitable sharing of the prosperity of the establishment.
Commencement
25th September, 1965
Applicability (Section 1)
• Extends to the whole of India.
• Applies to: Every factory, Every other establishment in which 20 or more persons
are employed.
• Once applicable, it continues even if employee count falls below 20.
Important Definitions (Section 2)
• Employee – Any person (other than an apprentice) earning up to ₹21,000 per
month engaged in skilled, unskilled, manual, supervisory, managerial,
administrative, technical, or clerical work for hire or reward.
• Wages – All remuneration capable of being expressed in money, including
allowances, but excluding bonus, PF contribution, overtime, and certain other
allowances.
Eligibility for Bonus (Section 8)
• Must have worked for at least 30 working days in the accounting year.
Disqualification from Bonus (Section 9)
• Dismissal for: Fraud, Riotous or Violent Behaviour, Theft, Misappropriation or
Sabotage of Property.
Minimum and Maximum Bonus (Sections 10–11)
• Minimum Bonus: 8.33% of wages or ₹100 (₹60 if below 15 years), whichever is
higher, irrespective of profit or loss.
• Maximum Bonus: 20% of wages.
Calculation of Bonus (Section 12)
• For calculation purposes, wage ceiling is ₹7,000 per month or the minimum wage
for the scheduled employment (whichever is higher).
Allocable Surplus (Sections 5–6)
• Gross Profit: Calculated as per the First Schedule (for banking companies) or
Second Schedule (for others).
• Available Surplus = Gross Profit – Prior Charges (like depreciation,
development, rebate, direct taxes).

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 • Allocable Surplus = 60% of available surplus (67% for companies not required to
pay income tax).
Set-on and Set-off (Section 15)
• Set-on: Excess allocable surplus over the maximum bonus (20%) is carried
forward up to 4 years.
• Set-off: Deficiency in allocable surplus (less than minimum bonus) is carried
forward up to 4 years.
Time Limit for Payment (Section 19)
• Bonus must be paid within 8 months of the close of the accounting year.
• May be extended by government notification for sufficient cause.
Maintenance of Registers and Records (Section 26)
• Employers must maintain prescribed registers for: Computation of allocable
surplus, Details of bonus payments, Annual returns to the authorities.
Inspectors and Enforcement (Sections 27–28)
• Inspectors appointed to examine records, enter premises, and ensure compliance.
Penalties (Section 28)
• Contravention: Imprisonment up to 6 months and/or fine up to ₹1,000.
Other Relevant Provisions
• Section 32: Certain classes of employees and establishments exempted (e.g.,
employees of RBI, LIC, seamen, universities, charitable institutions).
• Section 36: Power of the appropriate government to make rules for carrying out
provisions.
• Section 39: Protection of action taken in good faith.

Link to the Payment of Bonus Act, 1965:

https://www.indiacode.nic.in/bitstream/123456789/1663/1/A1965-21.pdf

15
Section C) Social Security Laws(4)

No.1= Employees’ State Insurance Act, 1948

Introduction
The Employees’ State Insurance (ESI) Act, 1948 is a comprehensive social security
legislation
enacted to provide protection to employees against various contingencies such as sickness,
maternity, disablement, and death due to employment injury.
Commencement
19th April, 1948 (enforced in stages from 1952).
Applicability (Section 1)
• Initially applied to non-seasonal factories using power and employing 10 or more
persons. Extended to shops, hotels, restaurants, cinemas, educational and medical
institutions, and other notified establishments.
• Applicable across India except in areas where better social security schemes are
available. Present wage ceiling for coverage: ₹21,000 per month (₹25,000 for
persons with disabilities).
Key Authorities under the Act
• Employees’ State Insurance Corporation (ESIC) – Apex body for administration
(Section 3).
• Director General – Chief executive officer of ESIC (Section 5A).
• Medical Benefit Council – Advises ESIC on medical benefits.
• Local Committees and Regional Boards – Aid in local implementation and
feedback.
Important Definitions (Section 2)
• Employee – A person employed for wages in a factory/establishment.
• Wages – All remuneration paid or payable in cash, including allowances but
excluding PF, gratuity, and other specified items.
• Factory – Premises where a manufacturing process is carried out with/without
power and employing 10 or more persons.
Contribution (Section 39)
• Funded by both employer and employee contributions: Employer: 3.25% of
wages, Employee: 0.75% of wages.
• Employees earning less than ₹176/day are exempt from contribution but entitled
to benefits.

Benefits (Section 46)

• Medical Benefit – Full medical care for insured persons and families.

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 • Sickness Benefit (Section 49) – 70% wages during certified sickness, up to 91
days/year.
• Extended Sickness Benefit (Section 50) – For 34 specified long-term diseases,
80% wages for up to 2 years.
• Maternity Benefit (Section 51) – Full wages for 26 weeks for
confinement/miscarriage-related illness (extendable in specific cases).
• Disablement Benefit (Sections 52–54) –Temporary: As long as disability lasts.
• Permanent: Lifelong payment based on loss of earning capacity.
• Dependents’ Benefit (Sections 52–54A) – Monthly pension to dependents of an
employee dying from employment injury.
• Funeral Expenses (Section 46(4)) – Up to ₹15,000 reimbursement.
• Rehabilitation Allowance – For injured/disabled employees needing rehabilitation.
Enforcement and Powers (Section 45)
• Inspectors may examine records, visit establishments, and ensure compliance with
contribution and benefit provisions.
Exemptions (Sections 87–91)
• Granted in special cases where employees receive substantially similar or superior
benefits from other schemes.
Adjudication of Disputes (Sections 75–84)
• Disputes referred to Employees’ Insurance Courts.
Penalties (Section 85)
• Non-payment of contributions: Imprisonment up to 2 years and fine up to ₹5,000.
• False statements: Imprisonment up to 6 months and/or fine.
• Repeat offences: Minimum 2 years’ imprisonment and ₹25,000 fine.
Rule-making Power (Section 91A)
• Central Government may make rules to carry out provisions of the Act.

Link to the Employees’ State Insurance Act, 1948:

https://www.indiacode.nic.in/bitstream/123456789/1563/1/194834.pdf

17
No.2= Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
Introduction
The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 was enacted to
provide a system of compulsory savings for employees to ensure financial security after
retirement and to provide benefits in case of disability, illness, or death. It establishes
schemes for provident fund, pension, and deposit-linked insurance for employees in certain
establishments.
Commencement
4th March, 1952
Applicability (Section 1)
• Extends to the whole of India except Jammu & Kashmir (now applicable post-
2019 changes). Applies to: Every establishment with 20 or more employees. Can
be applied to smaller establishments by notification.
• Covers both public and private sector undertakings.
Important Definitions (Section 2)
• Employee – Any person employed for wages in any kind of work, directly or
indirectly, in connection with the work of an establishment.
• Wages – Basic wages plus dearness allowance and retaining allowance, if any.
• Fund – The provident fund established under the Act.
Schemes under the Act (Section 5)
• Employees’ Provident Fund Scheme (EPF) – Provides retirement benefits via
lumpsum accumulation.
• Employees’ Pension Scheme (EPS) – Provides monthly pension to employees
after retirement or to family after death.
• Employees’ Deposit Linked Insurance Scheme (EDLI) – Provides life
insurance cover linked to the employee’s PF account.
Contribution Rates (Section 6)
Standard rate:
• Employer: 12% of basic wages, DA, and retaining allowance.
• Employee: 12% (can contribute more voluntarily). For certain establishments,
rate may be reduced to 10% by notification.
EPF Scheme Highlights
• Entire employer’s and employee’s contributions (except for pension portion)
credited to EPF account. Accumulates with interest as notified by the government.
• Withdrawable on retirement, permanent disability, or certain specified conditions
(e.g., housing, illness, marriage).

18
EPS Scheme Highlights
• Out of employer’s contribution, 8.33% goes to EPS (up to ₹15,000 wage limit).
• Provides pension on superannuation (age 58), early pension (age 50–57), or
disability pension. Widow/children/orphan pension available after employee’s
death.
EDLI Scheme Highlights
• Provides life insurance benefit to nominees in case of member’s death while in
service.
• Benefit amount linked to last drawn salary, subject to prescribed limits.
Compliance & Enforcement
• Employers must register eligible establishments, maintain records, submit returns,
and deposit contributions monthly.
• EPFO (Employees’ Provident Fund Organisation) oversees implementation.
• Inspectors/Enforcement Officers may inspect records and ensure compliance.
Penalties (Sections 14 & 14B)
• Non-payment of contributions: Imprisonment up to 3 years and/or fine.
• Damages for late payment: 5% to 25% of arrears, depending on delay.
• False statements: Imprisonment up to 1 year and/or fine up to ₹5,000.
Exemptions (Section 17)
• Granted if employees enjoy benefits that are on the whole not less favorable than
those under the Act.
Other Relevant Provisions
• Section 16: Certain establishments exempted (e.g., cooperative societies with
fewer employees).
• Section 21: Recovery of arrears as land revenue.
• Section 22: Protection of benefits from attachment.

Link to the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952:
https://www.indiacode.nic.in/bitstream/123456789/1537/1/A1952-19.pdf

19
No.3= Payment of Gratuity Act, 1972
Introduction
The Payment of Gratuity Act, 1972 was enacted to provide a statutory right to gratuity for
employees as a lump-sum terminal benefit for long and continuous service. It is a social
security measure to reward employees for their past service and ensure post-employment
financial support. Gratuity is payable on retirement, resignation, death, or disablement, and
is a statutory obligation of the employer.
Commencement
16th September, 1972
Applicability (Section 1)
• Extends to the whole of India.
Applies to:
• Every factory, mine, oilfield, plantation, port, and railway company.
• Every shop or establishment with 10 or more employees in the preceding 12
months.
• Once applicable, continues even if the number of employees falls below 10.

Important Definitions (Section 2)

• Employee – Any person (other than an apprentice) employed for wages in any
establishment, whether skilled, unskilled, manual, supervisory, technical, or
clerical work, but excludes employees covered under the Armed Forces Act.
• Wages – Basic wages plus dearness allowance, but excluding bonus, overtime,
and allowances.
Eligibility for Gratuity (Section 4)
• Minimum 5 years of continuous service (not required in case of death or
disablement).
• Payable on:
o Superannuation.
o Retirement or resignation.
o Death or disablement due to accident or disease.
Calculation of Gratuity (Section 4(2)
• Wages = Basic + DA.
• Maximum ceiling: ₹20,00,000 (as per latest amendment).
• For seasonal establishments: 7 days’ wages for each season.
Forfeiture of Gratuity (Section 4(6)
• Whole or part of gratuity can be forfeited if:
o Employee’s services are terminated for wilful misconduct, act of violence, or
o offence involving moral turpitude.
20
Nomination (Section 6)
• Employee must nominate one or more family members to receive gratuity in case
of death.
Time Limit for Payment (Section 7)
• Employer must determine gratuity amount and give notice to employee/nominee
within 30 days from it becoming payable.
• Payment must be made within 30 days, failing which interest is payable.
Enforcement & Authorities
• Controlling Authority appointed by the government to decide disputes regarding
payment, eligibility, and amount of gratuity.
• Appeals lie with the Appellate Authority.
Penalties (Section 9)
• For avoiding gratuity payment: Imprisonment up to 2 years and/or fine up to
₹20,000.
• For false statements: Imprisonment up to 6 months and/or fine up to ₹10,000.
Exemptions (Section 5)
• Establishments with gratuity provisions more favourable than the Act may be
exempted by notification.

Other Relevant Provisions

• Section 13: Gratuity cannot be attached in execution of any decree/order of any
court.
• Section 14: Act overrides any inconsistent provisions of other laws or agreements.

Link to the Payment of Gratuity Act, 1972:

https://www.indiacode.nic.in/bitstream/123456789/1532/1/A1972-39.pdf

21
No.4= Maternity Benefit Act, 1961
Introduction
The Maternity Benefit Act, 1961 was enacted to regulate the employment of women during
the period before and after childbirth and to provide maternity benefits and certain other
benefits to women employees. It aims to protect the dignity of motherhood, ensure the
health of the mother and child, and prevent discrimination against women in employment
on account of maternity.
Commencement
12th December, 1961
Applicability (Section 2)
• Extends to the whole of India.
• Applies to:
o Every factory, mine, or plantation.
o Every shop or establishment employing 10 or more employees.
• Does not apply to employees covered under the Employees’ State Insurance Act,
• 1948 for benefits relating to maternity (except for certain provisions).

Important Definitions (Section 3)

• Maternity Benefit – Payment to a woman at the rate of her average daily wage
for the period of her maternity leave.
• Child – Includes a stillborn child.
• Wages – All remuneration in cash, including allowances, but excluding bonus,
overtime, and certain allowances.
Right to Maternity Benefit (Section 5)
• Woman must have worked for at least 80 days in the 12 months preceding the
expected date of delivery.
• Entitled to maternity benefit at the rate of average daily wages for the period of
absence.
Duration of Maternity Leave
• 26 weeks for the first two surviving children (up to 8 weeks before delivery).
• 12 weeks for the third child onwards (up to 6 weeks before delivery).
• 12 weeks for adopting a child below 3 months of age or for a commissioning
mother (surrogate), from the date of handing over the child.
Other Benefits
• Medical Bonus (Section 8) – ₹3,500 if no pre-natal or post-natal care is provided
by the employer.
• Nursing Breaks (Section 11) – Two breaks per day for nursing the child until the
child is 15 months old.

22
 • Prohibition of Employment (Section 4) – No employer shall employ a woman
during the 6 weeks immediately following the day of delivery/miscarriage, and no
woman shall work during that period.
Prohibition of Dismissal (Section 12)
• Employer cannot dismiss or discharge a woman during maternity leave, nor give
notice of discharge expiring during such period, except for gross misconduct.
Work from Home Option (Section 5(5)
• After availing maternity leave, an employer may allow work from home for such
period as mutually agreed, depending on the nature of work.
Miscarriage and Tubectomy Operation Leave (Sections 9 & 10)
• Miscarriage: 6 weeks’ leave with wages.
• Tubectomy operation: 2 weeks’ leave with wages.
Authorities and Enforcement
• Inspectors appointed to ensure compliance and examine records.
Penalties (Section 21)
• Contravention: Imprisonment up to 3 months and/or fine up to ₹5,000.
Overriding Effect (Section 27)
• The Act overrides any inconsistent provisions of other laws or agreements, but
more favourable benefits under any law/contract are protected.

Link to the Maternity Benefit Act, 1961:

https://www.indiacode.nic.in/bitstream/123456789/1531/1/A1961-53.pdf

23
Section D) Working Conditions & Welfare Laws(7)

No.1= Factories Act, 1948

Introduction
The Factories Act, 1948 was enacted to regulate the working conditions in factories,
ensuring adequate safety, health, and welfare measures for workers. It seeks to protect
workers from occupational hazards, ensure humane working hours, and promote the
welfare of labour in manufacturing units.
Commencement
1st April, 1949
Applicability (Section 1)
• Extends to the whole of India.
• Applies to: Any premises where 10 or more workers are working with the aid of
power, or 20 or more workers without the aid of power, engaged in a
manufacturing process.
• Certain provisions apply to smaller premises if notified by the government.
Important Definitions (Section 2)
• Factory – Premises where a manufacturing process is carried out with/without
power and meets the worker threshold.
• Worker – Person employed directly or through an agency in any manufacturing
process, including cleaning or work incidental to it.
• Manufacturing Process – Making, altering, repairing, ornamenting, finishing,
packing, etc., of any article or substance.
• Occupier – Person with ultimate control over the affairs of the factory.
Health Provisions (Sections 11–20)
• Cleanliness, disposal of wastes, ventilation, temperature control, prevention of
dust/fumes, artificial humidification, overcrowding limits, adequate lighting,
potable drinking water, and proper sanitation facilities.
Safety Provisions (Sections 21–41H)
• Fencing of machinery, work on dangerous machines, employment restrictions for
young persons on dangerous machines, precautions against dust/fumes,
explosive/inflammable materials, safety of buildings, machinery maintenance, and
safety officers in certain factories.
Welfare Provisions (Sections 42–50)
• Washing facilities, facilities for storing and drying clothes, sitting arrangements,
firstaid appliances, canteens (mandatory in factories with 250+ workers),
shelters/restrooms, crèches (mandatory in factories with 30+ women workers),
and welfare officers in 500+ worker units.

24
Working Hours and Employment Regulations
• Adults (Sections 51–66):
o Max 48 hours/week and 9 hours/day. Weekly holiday (Sunday or other fixed
day). Interval for rest after 5 hours.
o Overtime wages at twice the ordinary rate. Night work restrictions for women
(with certain exceptions).
• Children (Sections 67–77):
o Minimum age: 14 years. Certificate of fitness required. Max 4.5 hours/day; no
o night shifts.
Annual Leave with Wages (Section 79)
• 1 day for every 20 days worked in the previous calendar year (adults). 1 day for
every 15 days worked (children).
Special Provisions
• Hazardous processes (Chapter IVA) – Special committees, medical examinations,
safety measures, and permissible exposure limits.
Authorities & Enforcement
• Inspectors, certifying surgeons, and other authorities appointed to enforce
provisions.
Penalties (Sections 92–99)
• Contravention: Imprisonment up to 2 years and/or fine up to ₹1,00,000.
• Continuing contravention: ₹1,000 per day.
• Higher penalties for causing death/serious injury.
Other Relevant Provisions
• Section 115: Power of state governments to make rules.
• Section 120: Act overrides inconsistent laws but more favourable benefits prevail.

Link to the Factories Act, 1948:

https://www.indiacode.nic.in/bitstream/123456789/1541/1/A1948-63.pdf

25
No.2= Mines Act, 1952
Introduction
The Mines Act, 1952 was enacted to regulate the working conditions in mines, ensuring the
safety, health, and welfare of persons employed therein. It seeks to prevent accidents,
reduce health hazards, and provide humane working conditions in mining operations.
Commencement
1st March, 1952
Applicability (Section 1)
• Extends to the whole of India.
• Applies to all mines, whether underground or open-cast.
• Does not apply to mines where extraction is done solely for domestic purposes
and does not employ more than 20 persons.
Important Definitions (Section 2)
• Mine – Includes any excavation for searching, extracting, or processing minerals,
including related premises like shafts, winches, and workshops.
• Owner – Any person or company that owns or has control over a mine.
• Agent – Person appointed by the owner to manage the mine.
• Manager – Person responsible for day-to-day operations of the mine.
Health and Safety Provisions
• Proper ventilation and dust control measures to prevent health hazards.
• Measures for safe storage and use of explosives.
• Adequate lighting in working areas.
• Protection from dangerous gases and provision of adequate communication
systems in case of emergencies.
• Compulsory use of safety equipment like helmets, belts, and lamps.
Welfare Provisions (Sections 18–21)
• First-aid appliances and medical rooms in mines.
• Supply of drinking water.
• Shelters and restrooms for mine workers.
• Canteens in mines employing more than 150 workers.
Working Hours & Employment Restrictions
• Adults (Section 28–30):
• Max 48 hours/week underground; 54 hours/week in open-cast mines.
• Maximum 9 hours/day with intervals for rest.
• Women (Section 46):
• Prohibited from working underground; can work above ground between 6 a.m. and
7 p.m. only.
• Young Persons (Sections 40–45):

26
 • Minimum age: 18 years for underground work.
• 16–18 years allowed only in surface work with a fitness certificate.
Leave with Wages (Section 52)
• 1 day for every 15 days worked in the previous calendar year.
Authorities under the Act
• Chief Inspector of Mines, Inspectors, and other officers to enforce provisions.
• Managers to be appointed for every mine.

Accident Reporting (Section 23)

• Notice to authorities within 24 hours of any accident-causing loss of life or serious
injury.
Penalties (Section 72)
• Contravention of provisions: Imprisonment up to 3 months and/or fine up to
₹1,000.
• Higher penalties for repeat offences.
Other Relevant Provisions
• Section 57: Power to make regulations for detailed safety standards.
• Section 58: Power to make rules for welfare and working conditions.
• Section 59: Power to make bye-laws for specific mines.

Link to the Mines Act, 1952:

https://www.indiacode.nic.in/bitstream/123456789/1555/1/A1952-35.pdf

27
No.3= Contract Labour (Regulation & Abolition) Act, 1970
Introduction
The Contract Labour (Regulation & Abolition) Act, 1970 was enacted to regulate the
employment of contract labour in certain establishments and to provide for its abolition in
specific cases. It aims to ensure that contract labour is engaged in fair conditions of work
and to prevent their exploitation by providing minimum welfare and health facilities.
Commencement
10th February, 1971
Applicability (Section 1)
• Extends to the whole of India.
• Applies to:
o Every establishment in which 20 or more contract labourers are employed on
o any day in the preceding 12 months.

• Every contractor who employs 20 or more contract labourers.

• Does not apply to establishments where work is of an intermittent or casual
nature (less than 120 days in the preceding 12 months, or 60 days if seasonal).
Important Definitions (Section 2)
• Contract Labour – Workman hired through a contractor to work in an
establishment.
• Principal Employer – Head of government department, owner/occupier of
factory, or person responsible for supervision/control of an establishment.
• Contractor – Person who undertakes to produce a given result or supply labour
for work through contract with the principal employer.
Registration of Establishments (Section 7)
• Principal employer must register the establishment employing contract labour
with the registering officer.
• Engaging contract labour without registration is prohibited.
Licensing of Contractors (Section 12)
• Contractors employing 20+ workers must obtain a license from the licensing
officer.
• License may impose conditions regarding welfare, health, hours of work, and
wage rates.
Welfare and Health Provisions (Sections 16–19)
• Canteens to be provided if 100+ contract workers are employed.
• Adequate restrooms, drinking water, latrines, urinals, and first-aid facilities to be
provided.
Payment of Wages (Section 21)
• Contractor responsible for timely payment of wages to contract labour.

28
 • Principal employer is liable to make payment if contractor fails and can recover
the amount from the contractor.
Abolition of Contract Labour (Section 10)
• Appropriate government may prohibit employment of contract labour in any
process, operation, or work in any establishment after considering:
o Whether work is perennial and must be done by regular workmen.
o Whether work is incidental/necessary to the industry.
o Whether work is sufficient to employ considerable number of whole-time
workers.
o Whether work is being done in the same or similar manner by regular
workmen in the establishment.
Authorities and Advisory Bodies
• Central and State Advisory Contract Labour Boards to advise governments on
matters arising out of the Act.
Penalties (Section 23–26)
• Contravention of provisions: Imprisonment up to 3 months and/or fine up to
₹1,000.
• Continuing contravention: Additional fine up to ₹100 per day.

Other Relevant Provisions

• Section 35: Power to make rules for carrying out provisions of the Act.
• Act overrides inconsistent provisions of any other law, but more favourable
conditions for workers prevail.

Link to the Contract Labour (Regulation & Abolition) Act, 1970:

https://www.indiacode.nic.in/bitstream/123456789/1584/1/197037.pdf

29
No.4= Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979
Introduction
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)
Act, 1979 was enacted to regulate the employment of inter-state migrant workers and to
provide for their welfare and protect them from exploitation. It ensures equal treatment
with local workers in terms of wages, working conditions, and other facilities.
Commencement
8th December, 1979
Applicability (Section 1)
• Extends to the whole of India.
• Applies to:
o Every establishment in which 5 or more inter-state migrant workmen are
o employed or were employed on any day in the preceding 12 months.
o Every contractor who employs or has employed 5 or more inter-state migrant
o workmen during any day of the preceding 12 months.
Important Definitions (Section 2)
• Inter-State Migrant Workman – A person recruited from one state for
employment in an establishment in another state, through a contractor.
• Principal Employer – Owner/occupier or person responsible for supervision and
control of the establishment.
• Contractor – Person who undertakes to produce a given result or supply labour
through a contract with the principal employer.
Registration of Establishments (Section 4)
• Principal employer must register the establishment with the registering officer
before employing inter-state migrant workers.
Licensing of Contractors (Section 8)
• Contractors must obtain a license to employ inter-state migrant workmen,
specifying the number of workers and conditions of employment.
Rights & Welfare Provisions (Sections 13–16)
• Wages – Equal to or higher than those for similar work by local workers; paid
directly in cash.
• Displacement Allowance – Equal to 50% of monthly wages or ₹75, whichever is
higher, payable at the time of recruitment.
• Journey Allowance – To and fro fare between the worker’s home state and the
place of employment, including payment during travel days.
• Other Facilities – Residential accommodation, medical facilities, protective
clothing where necessary.

30
Duties of Contractors (Section 12)
• Ensure proper working conditions, timely payment of wages, and provision of
welfare facilities.
Duties of Principal Employer (Section 20)
• Responsible for payment of wages if the contractor fails.
• Ensure that the contractor complies with the Act’s provisions.
Registers and Records (Section 29)
• Contractors and principal employers must maintain registers showing the details
of inter-state migrant workmen employed, wages paid, and facilities provided.
Inspectors (Section 23)
• Appointed by the appropriate government to enforce provisions, examine records,
and inspect premises.
Penalties (Sections 25–27)
• Contravention of provisions: Imprisonment up to 1 year and/or fine up to ₹1,000.
• Continuing offence: Additional fine of ₹100 per day.
Overriding Effect (Section 35)
• Provisions override any inconsistent laws, but more favorable benefits to workers
under any other law/contract prevail.

Link to the Inter-State Migrant Workmen Act, 1979:

https://www.indiacode.nic.in/bitstream/123456789/1590/1/197930.pdf

31
No.5= Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996
Introduction
The Act was enacted to regulate the employment and conditions of service of building and
other construction workers, and to provide for their safety, health, and welfare. It also
provides for the establishment of welfare boards and funds to support such workers.
Commencement
1st March, 1996
Applicability (Section 1)
• Extends to the whole of India.
• Applies to every establishment which employs or has employed 10 or more
building
• workers in any building or other construction work on any day of the preceding 12
months.
• Does not apply to construction work carried out for personal residential purposes
where the total cost does not exceed ₹10 lakh.
Important Definitions (Section 2)
• Building or Other Construction Work – Includes construction, alteration,
repairs, maintenance, demolition of buildings, roads, bridges, pipelines, etc.
• Building Worker – Person employed directly or indirectly in building or other
construction work.
• Establishment – Any place where building or other construction work is carried
on.
• Employer – Owner, contractor, or person responsible for supervision/control of
the establishment.
Registration of Establishments (Sections 7–9)
• Every establishment employing 10 or more workers must register with the
registering officer.
• Failure to register attracts penalties.
Registration of Building Workers as Beneficiaries (Sections 12–16)
• Workers between 18–60 years who have worked for at least 90 days in the
preceding 12 months can register as beneficiaries with the welfare board.
• Registration requires a nominal fee.
Welfare Boards (Sections 18–27)
• State governments to constitute Building and Other Construction Workers’
Welfare Boards.
• Boards administer welfare schemes and provide benefits like pensions, loans for
housing, education assistance, medical expenses, maternity benefits, and accident
compensation.

32
Cess for Welfare Fund (Section 3 of the Cess Act, 1996)
• Levy of 1–2% cess on the cost of construction to fund welfare schemes.
Health, Safety & Welfare Provisions (Sections 32–38)
• Provisions for safety of workers at heights, use of machinery, handling of
explosives, scaffolding, and protective equipment.
• Drinking water, latrines, urinals, creches, first-aid, canteens, and temporary
accommodation for workers.
Hours of Work, Wages & Overtime (Section 39)
• Daily and weekly working hours, overtime wages, and rest intervals as per
prescribed rules.
Inspectors (Sections 42–43)
• Appointment of Inspectors with powers to enter establishments, examine records,
and enforce provisions.
Penalties (Sections 47–49)
• Contravention: Imprisonment up to 3 months and/or fine up to ₹2,000.
• Obstructing Inspector: Imprisonment up to 3 months and/or fine up to ₹500.
Rule-Making Powers (Sections 40 & 62)
• Appropriate government empowered to frame rules for implementation.

Link to the Building and Other Construction Workers Act, 1996:

https://www.indiacode.nic.in/bitstream/123456789/2049/1/A1996-27.pdf

33
No.6= Child and Adolescent Labour (Prohibition and Regulation) Act, 198
(Amended 2016)
Introduction
The Act was enacted to prohibit the engagement of children in all occupations and processes
and to regulate the conditions of work of adolescents in certain hazardous occupations and
processes. The 2016 amendment made it stricter by banning employment of children under
14 years in all occupations, with limited exceptions, and introducing provisions for
adolescents (14–18 years).
Commencement
23rd December, 1986 (Amendment effective from 1st September, 2016)
Applicability (Section 1)
• Extends to the whole of India.
• Applies to all occupations and processes except where explicitly exempted.
Important Definitions (Section 2)
• Child – A person who has not completed 14 years of age.
• Adolescent – A person who has completed 14 years but not completed 18 years of
age.
• Family – Includes parents, siblings, and siblings of parents.
• Hazardous Occupations and Processes – Specified in the Schedule to the Act
(e.g., mining, explosives, certain chemical processes).
Prohibition of Employment (Sections 3 & 3A)
• Children:
o Prohibited from working in any occupation or process.
o Exceptions: Helping in a family enterprise (not hazardous, not during school
hours) or working as an artist in the audio-visual entertainment industry (with
safety safeguards).
• Adolescents:
o Prohibited from hazardous occupations and processes listed in the Schedule.
Regulation of Conditions of Work (Sections 7–13)
• Applicable where adolescents are allowed to work:
• Working hours: Not more than 6 hours/day, including rest
intervals.
• No work between 7 p.m. and 8 a.m.
• No overtime.
• Weekly holiday.
• Health and safety measures to be provided by the employer.

34
Penalties (Sections 14–16)
• Employment of a child: Imprisonment of 6 months to 2 years and/or fine
₹20,000 to ₹50,000.
• Employment of an adolescent in hazardous work: Same penalty.
• Repeat offences: Higher imprisonment (up to 3 years).
Rehabilitation of Rescued Children (Section 14B)
• Child and Adolescent Labour Rehabilitation Fund to be set up with fines
recovered from employers.
• ₹15,000 per child to be credited by the employer, along with government grants.
Inspectors (Section 17A)
• Inspectors-cum-facilitators appointed to monitor compliance.
Offences as Cognizable (Section 17)
• All offences under the Act are cognizable, allowing immediate legal action.
Rule-Making Powers (Section 18)
• Appropriate government empowered to make rules for effective enforcement.

Link to the Child & Adolescent Labour Act (with 2016 Amendment):
https://www.indiacode.nic.in/bitstream/123456789/2157/1/A1986-61.pdf

35
No.7= Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
Introduction
This Act was enacted to provide protection to women against sexual harassment at the
workplace and for the prevention and redressal of complaints. It gives statutory backing to
the guidelines laid down by the Supreme Court in the landmark Vishaka v. State of Rajasthan
(1997) case.
Commencement
9th December, 2013
Applicability (Section 1)
• Extends to the whole of India.
• Applies to:
o All workplaces in the public and private sector.
o Organized and unorganized sectors.
o Includes hospitals, nursing homes, educational institutions, sports
institutions, and dwelling places.
Important Definitions (Section 2)
• Sexual Harassment includes:
o Physical contact and advances.
o Demand or request for sexual favours.
o Making sexually coloured remarks.
o Showing pornography.
o Any other unwelcome physical, verbal, or non-verbal conduct of sexual
nature.
• Workplace – Any place visited by the employee during employment,
including transportation.
• Aggrieved Woman – Any woman, of any age, whether employed or not, who
alleges sexual harassment.

Duties of Employer (Section 19)

• Provide a safe working environment.
• Display conspicuous notices about the Act and penal consequences.
• Organize awareness programmes.
• Assist the woman in filing a criminal complaint if she chooses.
Internal Complaints Committee (ICC) (Sections 4–9)
• Every employer with 10 or more employees must constitute an ICC.
• Composition:
o Presiding Officer: Woman employed at a senior level.
o At least 2 employee members committed to women’s causes.

36
 o 1 member from an NGO or
o association committed to women’s issues.
o Tenure: 3 years.
Local Complaints Committee (LCC) (Sections 6–7)
• Established by the District Officer in every district for organizations with <10
workers or where the employer is the respondent.
Complaint Procedure (Section 9)
• Complaint to be filed within 3 months of the incident (extendable by another 3
months). Can be written or oral (assisted in writing by ICC/LCC if needed).
Inquiry Process (Sections 11–13)
• ICC/LCC to complete inquiry within 90 days.
• Submit report to employer/District Officer within 10 days.
• Employer to act within 60 days based on recommendations.
Action During Pendency (Section 12)
• Transfer of the aggrieved woman or respondent. Grant of leave up to 3 months.
Any other relief as recommended.
Penalties (Section 26)
• Employer’s failure to comply: Fine up to ₹50,000.
• Repeat offence: Higher penalty and possible cancellation of business license.
False/Malicious Complaints (Section 14)
• Action may be taken against the complainant if the complaint is found to be
false/malicious (provision to prevent misuse).

Link to the Sexual Harassment of Women at Workplace Act, 2013:

https://www.indiacode.nic.in/bitstream/123456789/2104/1/A2013-14.pdf

37
Section E) Miscellaneous Acts(2)

No.1= Beedi & Cigar Workers (Conditions of Employment) Act, 1966

Introduction
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 was enacted to regulate
the conditions of employment of persons engaged in the manufacture of beedis and cigars,
ensuring their health, safety, and welfare. It provides specific protections for home-based
and factory-based workers in this largely unorganized sector.
Commencement
1st August, 1969 (brought into force in different states on different dates)
Applicability (Section 1)
• Extends to the whole of India.
• Applies to all establishments engaged in the manufacture of beedis or cigars,
including both factory and home-based work.
• Exemption: Establishments employing family members only.
Important Definitions (Section 2)
• Beedi – Any product manufactured by rolling tobacco in a tendu or other leaf.
• Cigar – Rolled tobacco in tobacco leaf or other covering.
• Establishment – Any premises or home where beedi or cigar manufacturing work
is carried on.
• Employer – Owner, occupier, managing agent, contractor, or person having
ultimate control over the affairs of the establishment.
Licensing of Industrial Premises (Sections 3–6)
• No industrial premises can engage in beedi/cigar manufacturing without obtaining
a license from the competent authority.
• License is subject to conditions on health, safety, and welfare of workers.
Hours of Work (Sections 17–18)
• Adults: Maximum 9 hours/day and 48 hours/week.
• Women: Prohibited from working between 7 p.m. and 6 a.m.
• Intervals for rest: After 5 hours of continuous work.
• Overtime: Paid at twice the ordinary rate of wages.
Leave with Wages (Sections 26–30)
• One day of leave for every 20 days of work performed in the previous year
(adults).
• One day of leave for every 15 days (children).
• Unused leave can be carried forward subject to limits.
Health & Safety Provisions (Sections 14–16)
• Adequate ventilation, lighting, and cleanliness in premises.

38
 • Proper disposal of waste.
• Potable drinking water and latrines.
Prohibition of Employment of Certain Persons (Sections 24–25)
• Children below 14 years prohibited.
• Young persons (14–18 years) require a fitness certificate.
Welfare Provisions (Sections 31–37)
• Provision of washing facilities, first-aid, and canteens in certain establishments.
• Crèches for the children of women workers (where 50 or more women are
employed).
Special Provisions for Home Workers (Sections 39–44)
• Employers must issue an identity card and pass-book to home-based workers.
• Prohibition on rejecting finished beedis without reasonable cause.
• Payment of wages directly to workers, not to middlemen.
Penalties (Sections 47–50)
• Contravention: Imprisonment up to 6 months and/or fine up to ₹5,000.
• Repeat offences attract higher penalties.
Inspectors (Section 45)
• Appointment of Inspectors with powers to enter premises, examine records, and
enforce compliance.
Rule-Making Powers (Section 53)
• State Governments empowered to make detailed rules for implementation.

Link to the Beedi and Cigar Workers Act, 1966:

https://www.indiacode.nic.in/bitstream/123456789/1704/1/196632.pdf

39
No.2= Bonded Labour System (Abolition) Act, 1976
Introduction
The Bonded Labour System (Abolition) Act, 1976 was enacted to give effect to Article 23 of
the Constitution of India, which prohibits traffic in human beings and forced labour.
The Act abolishes the bonded labour system, frees all bonded labourers, extinguishes their
debts, prohibits the creation of new bonded labour, and provides for their rehabilitation.
Commencement
• Came into force on 25th October, 1975 via ordinance;
• Replaced by the Act, which received Presidential assent on 9th February, 1976,
with retrospective effect from 25th October, 1975.
Applicability (Section 1)
• Extends to the whole of India. Applies to all persons, irrespective of caste, creed,
or occupation.
Key Definitions (Section 2)
• Bonded Labour – Service arising from a bonded labour system.
• Bonded Labour System – A system where a debtor, or a dependent of the debtor:
o Undertakes to work for the creditor or his nominee for consideration (bonded
o debt), With restrictions on freedom of employment and movement, often with
low or no wages, Involving exploitation and economic compulsion.
• Bonded Debt – Advance (cash or kind) taken by the debtor under terms leading to
bondage.
Abolition of Bonded Labour System (Section 4)
• Bonded labour system is abolished and prohibited.
• All agreements, customs, or practices enforcing bonded labour are void and
unenforceable.
Freedom of Bonded Labourers (Sections 5–7)
• Every bonded labourer stands freed from any obligation to render bonded labour.
• Property taken from a bonded labourer in lieu of bonded debt must be restored.
No civil court shall entertain suits to recover bonded debt.
Extinguishment of Bonded Debt (Section 6)
• All bonded debts stand fully discharged on the commencement date. No legal
proceedings for recovery are maintainable.
Prohibition of Advancement of Bonded Debt (Section 10)
• Advancing bonded debt after commencement is a punishable offence.
Role of Vigilance Committees (Sections 13–14)
• Established at District and Sub-Divisional levels.
• Functions:
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 o Identify bonded labourers, Recommend their release and rehabilitation
o Monitor implementation of the Act
o Provide aid to freed bonded labourers.
Duties of District Magistrate (Section 13)
• The DM is the implementing authority responsible for:
o Ensuring release of bonded labourers
o Restoring their property Protecting them from threats or coercion.

Penalties (Sections 16–18)

• For compelling a person to render bonded labour:
• Imprisonment up to 3 years and/or fine up to ₹2,000.
• For advancing bonded debt after commencement: Same punishment.
• For extracting bonded labour under any pretext: Same punishment. Repeat
offences attract enhanced penalties.
Cognizance and Trial of Offences (Section 21)
• All offences are cognizable and bailable.
• Tried by a Judicial Magistrate of the first class.
Protection of Action Taken in Good Faith (Section 22)
• No legal proceedings against persons acting in good faith under the Act.
Rule-Making Powers (Section 23)
• Central and State Governments empowered to frame rules for enforcement.

Link to the Bonded Labour System (Abolition) Act, 1976:

https://www.indiacode.nic.in/bitstream/123456789/1576/1/197619.pdf

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SECTION F) Latest Labour Codes (to be studied as replacements of the
above acts once enforced)

No.1= Code on Wages, 2019

Introduction
The Code on Wages, 2019 is one of the four labour codes introduced by the Government of
India to consolidate and simplify existing labour laws.
It subsumes and replaces:
1. Payment of Wages Act, 1936
2. Minimum Wages Act, 1948
3. Payment of Bonus Act, 1965
4. Equal Remuneration Act, 1976

Link to Code on Wages, 2019:

https://www.indiacode.nic.in/bitstream/123456789/15503/1/A2019-29.pdf

No.2= Code on Social Security,2020

Introduction
The Code on Social Security, 2020 consolidates nine central labour laws relating to social
security, welfare benefits, and protection for workers in the organized, unorganized, and
gig/platform sectors.
It aims to extend coverage to all employees and workers, including self-employed and gig
workers, by simplifying compliance and creating a universal framework for social security
schemes.
Acts Subsumed
1. Employees’ Compensation Act, 1923
2. Employees’ State Insurance Act, 1948
3. Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
4. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
5. Maternity Benefit Act, 1961
6. Payment of Gratuity Act, 1972
7. Cine Workers Welfare Fund Act, 1981

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8. Building and Other Construction Workers’ Welfare Cess Act, 1996
9. Unorganised Workers’ Social Security Act, 2008

Link to Code on Social Security, 2020:

https://www.indiacode.nic.in/bitstream/123456789/5929/1/A2020-36.pdf

No.3=Occupational safety, Health and working conditions code, 2020

Introduction
The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code)
consolidates and replaces 13 central labour laws relating to health, safety, working
conditions, and welfare of workers in various establishments.
Its aim is to simplify and standardize regulations, enhance workers’ safety, improve health
provisions, and promote ease of doing business.

Acts Subsumed
1. Factories Act, 1948
2. Mines Act, 1952
3. Dock Workers (Safety, Health and Welfare) Act, 1986
4. Building and Other Construction Workers Act, 1996
5. Contract Labour (Regulation and Abolition) Act, 1970
6. Inter-State Migrant Workmen Act, 1979
7. Working Journalists and Other Newspaper Employees Act, 1955
8. Working Journalists (Fixation of Rates of Wages) Act, 1958
9. Motor Transport Workers Act, 1961
10. Sales Promotion Employees Act, 1976
11. Beedi and Cigar Workers (Conditions of Employment) Act, 1966
12. Cine Workers and Cinema Theatre Workers Act, 1981
13. Plantation Labour Act, 1951

Link to OSH Code, 2020:

https://www.indiacode.nic.in/bitstream/123456789/5926/1/A2020-37.pdf

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No.4= Industrial Relations Code, 2020
Introduction
The Industrial Relations (IR) Code, 2020 consolidates and replaces three central labour laws
dealing with industrial disputes, trade unions, and conditions of service of industrial
establishments.
It aims to promote industrial harmony, simplify compliance, and balance the rights of
employers and workers.

Acts Subsumed
1. Industrial Disputes Act, 1947
2. Trade Unions Act, 1926
3. Industrial Employment (Standing Orders) Act, 1946

Link to IR Code, 2020:

https://www.indiacode.nic.in/bitstream/123456789/5927/1/A2020-35.pdf

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