Industrial Relations And Labour Laws In India PdfBy Martha R. In and pdf 26.01.2021 at 15:41 4 min read
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India has enacted three new codes on employment conditions, social security and occupational health, safety and working conditions. Draft rules corresponding to each of the 4 codes have been released by Ministry of Labour and Employment for public comments.
Save extra with 2 Offers. Industrial Relations And Labour Laws - 6th Edn Book Summary: The sixth revised edition of Industrial Relations and Labor Laws captures the significant developments that have taken place in the realm of labor laws and industrial relations in the recent past.
As per the Indian Constitution, the Central as well as State Governments are empowered to enact suitable legislation to regulate and protect the interests of employees, as well as to create and increase employment opportunities. Depending on the type of industry, nature of work undertaken, number of employees, location, remuneration of the employees, etc. How are different types of worker distinguished? It excludes those employed in a managerial, administrative or supervisory capacity drawing wages exceeding INR 10, from its purview.
Special laws are also enacted for the recognition and protection of certain special kinds of employees such as contract labour and fixed-term employees. If not, do employees have to be provided with specific information in writing? In India, an employer-employee relationship can either be express or implied, written or oral. However, to avoid any dispute regarding the terms of employment, it is common practice to execute an employment contract.
Only a few Indian states such as Karnataka and Delhi require an employer to issue a written employment contract to employees employed in shops and commercial establishments. Terms and conditions of service which are regulated and mandated by statutes constitute implied terms of an employment contract. Therefore, provisions relating to the payment of wages, statutory bonuses, gratuity payments and mandatory social security contributions are considered to be implied terms of employment.
Further, employers shall also be required to adhere to applicable social security legislation. Does bargaining usually take place at company or industry level? Collective bargaining agreements are a predominant feature of the manufacturing sector and are the product of a charter of demands and several rounds of negotiations between an employer and members of a trade union.
Collective bargaining agreements can only establish better employment conditions such as remuneration including bonuses and yearly increments , leave entitlement and so on than those prescribed under various labour law statutes. The TU Act sets out the mechanism for the registration of trade unions but does not make registration mandatory. Once the trade union is recognised, refusal by an employer to bargain collectively in good faith is regarded as unfair labour practice.
The TU Act guarantees certain rights to trade unions which, inter alia , include the right to negotiate and secure terms of employment acceptable to its members by adopting various forms of collective bargaining and the right to hold demonstrations in furtherance of its objectives. The TU Act also provides registered trade unions certain immunity from prosecution for criminal conspiracy and from any suits or legal proceedings in any civil court in respect of any act done in furtherance of trade disputes.
The ID Act prescribes the means for resolution of industrial disputes between individual workmen, trade unions and employers.
It, inter alia , provides for the non-discrimination of workmen on the basis of their membership of trade unions and prescribes prior notice conditions in relation to strikes that are typically organised by trade unions. If so, what are the main rights and responsibilities of such bodies? A works committee does not have co-determination rights and is not intended to supplement the trade unions for the purpose of collective bargaining.
They are not authorised to consider real or substantial changes in the conditions of service. Their task is only to smoothen any friction that may arise between the workforce and management on a day-to-day basis. There is no statutory requirement to have a representative of the workmen on the board of an Indian company. If so, on what grounds is discrimination prohibited?
The Indian Constitution prohibits discrimination against citizens on certain grounds such as religion and sex. In furtherance of these objectives, several laws prohibit discrimination against protected classes of persons, such as persons with disabilities or a person who is HIV positive, in matters of employment. Similarly, special laws have been framed to promote the employment of specific classes of persons. For example, the provision of paid maternity leave and other benefits under the Maternity Benefit Act Maternity Benefit Act seeks to create a conducive working environment for female employees.
Discrimination in relation to remuneration on the grounds of gender whether at the time of recruitment or during employment is prohibited under the Equal Remuneration Act Further, the Rights of Persons with Disability Act Disabilities Act prohibits discrimination on the grounds of disability and the Maternity Benefit Act prohibits discrimination on the basis of maternity status.
The Transgender Persons Protection of Rights Act prohibits discrimination against a transgender person resulting in unfair treatment during employment or in a denial of or termination from employment. As per the PoSH Act, employers must formulate an anti-sexual harassment of women policy and widely disseminate this policy at its offices.
An Internal Committee should be constituted at each office engaging 10 or more employees, to redress complaints of sexual harassment by women. Further, the employer is required to organise awareness programmes for employees at regular intervals to sensitise them to the provisions of the PoSH Act. There are no statutory defences to a discrimination claim. However, employers may defend a discrimination claim if it can be shown that the impugned discrimination is a proportionate means of achieving a legitimate aim.
Can employers settle claims before or after they are initiated? Employees may approach the authorities appointed under the relevant anti-discrimination statutes, such as an Internal Committee under the PoSH Act or liaison officer under the Disabilities Act. Further, employees who qualify as workmen may also approach the authorities appointed under the ID Act.
The anti-discrimination statutes prescribe certain additional reliefs to employees depending on the nature of the discrimination such as the dismissal of the person against whom a complaint of sexual harassment is filed, if the claim is proved. Atypical workers are also afforded the same protection by the anti-discrimination statutes as afforded to other permanent employees. There are no additional protections prescribed for atypical workers. While there are Indian laws to protect whistleblowers in the public sector including government companies and departments , no special protection is afforded to whistleblowers in the private sector.
However, in the case of a woman with two or more surviving children, she will be entitled to 12 weeks of paid maternity leave. Commissioning mothers or adoptive mothers are also entitled to paid maternity leave.
Additional paid leave is prescribed for miscarriage, medical termination of pregnancy and tubectomy operations. In addition to paid maternity leave, a woman is protected from dismissal or discharge from employment on account of pregnancy or while on maternity leave.
Further, the terms and conditions of her service may not be varied to her disadvantage during such period. A woman is also entitled to receive from her employer a medical bonus of INR 2, to INR 3,, if no pre-natal or post-natal care is provided by the employer free of charge.
Upon return to work from maternity leave, a woman is entitled to additional nursing breaks during the course of her daily work, to attend to the needs of her child. Further, employers with 50 or more employees are required to provide creche facilities within a reasonable distance from the establishment and allow mothers to visit the creche at least four times a day.
An employer may also allow a woman to work from home, if the nature of the work assigned to her is such that she may work from home. While there is no statutory entitlement to paternity leave, an employer may at its discretion provide paternity leave to male employees.
There are no other parental leave rights that are required to be observed by employers, besides the benefits prescribed under the Maternity Benefit Act. Though not statutorily mandated, employees may be allowed flexibility in working conditions at the discretion of their employer.
Indian labour laws do not provide for the automatic transfer of employees pursuant to a business sale without obtaining the consent of the employees. In a share sale scenario, the acquisition of shares by a buyer will not result in any change in employer and only the shareholding pattern of the entity will change. Therefore, there will be no employee consent requirements in the extant scenario.
How does a business sale affect collective agreements? As mentioned in question 5. How long does the process typically take and what are the sanctions for failing to inform and consult? The duration of the consultation process with the employees will be subject to the nature of the transaction and the number of employees within the scope of the transaction. While there are no statutory sanctions for failing to consult with the employees, if the employees do not consent to the transfer of employment to the buyer, then they shall continue to remain on the rolls of the seller.
How is the notice period determined? Except in the case of the termination of employment for misconduct, an employer is mandated to provide notice of termination or salary in lieu of notice to the concerned employee. The notice period for dismissal of non-workmen will be determined as per the terms of their employment contract.
Yes, an employer may require employees to serve a period of garden leave during the notice period, in accordance with the employment contract of the employee. In what circumstances is an employee treated as being dismissed? Is consent from a third party required before an employer can dismiss? All dismissals on grounds of misconduct must be superseded by a domestic enquiry conducted in accordance with the principles of natural justice.
The employee must be given a reasonable opportunity to be heard as part of the enquiry process. If the services of a workman who has completed continuous service of at least one year are terminated on grounds other than misconduct, in addition to Notice of Retrenchment as mentioned in question 6.
In addition to the protection afforded by the ID Act to workmen, the Maternity Benefit Act also prohibits the dismissal or discharge of women during their maternity leave. Are employees entitled to compensation on dismissal and if so, how is compensation calculated? An employer may dismiss an employee for reasons relating to the individual, such as misconduct or unsatisfactory performance, subject to a duly concluded disciplinary enquiry as mentioned in question 6.
An employer may also dismiss an employee for business-related reasons such as role redundancy, restructuring or closure, by following the procedure prescribed under the ID Act and the respective employment contract. What are the remedies for a successful claim? An employee may bring forth a claim of wrongful termination if the appropriate procedure is not followed for the termination of his services.
Employers may settle employee claims at any time after they are initiated. For claims raised by workmen, employers may record the terms of settlement by way of a settlement agreement. An employer with a workmen headcount of more than is required to obtain prior permission of the appropriate government for dismissing workmen.
Further, the employer shall ordinarily be required to retrench the workman who was the last person to be employed in a particular category. If an employer does not comply with the procedure prescribed under the ID Act for mass dismissals, the concerned workmen may raise an industrial dispute with the appropriate authorities. The Indian Contract Act stipulates that an agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind is to that extent void.
A restrictive covenant, such as a non-compete covenant, extending beyond the term of service is void, irrespective of the reasonability of such a restriction, except in cases involving the sale of goodwill.
However, covenants with respect to non-solicitation or non-disclosure of confidential information may be enforced post-termination of employment for a reasonable period of time. There are no statutorily prescribed payments in lieu of restrictive covenants. However, in order to protect its business interests, employers may make payments to the employees to ensure that they adhere to such restrictive covenants.
However, in the event of the breach of restrictive covenants by the employees, recovery of such payments may pose a challenge. For the enforcement of restrictive covenants post termination of employment, employers may approach civil courts to obtain an injunction against potential or further breach of restrictive covenants by employees or ex-employees, as the case may be. However, the onus of proof in respect of any breach of restrictive covenants is on the employer. Can an employer transfer employee data freely to other countries?
Yes, as per the SPDI Rules, employees have a right to obtain copies of any personal information pertaining to them held by the employer. However, it is common for employers to conduct a background check on educational documents, prior experience letters, past employers and criminal records. There are no laws in India regulating the use of social media by employees.
Accordingly, an employer may frame internal policies to regulate the use of social media by employees during work hours and within the workplace.
India Consolidates and Codifies Its National-Level Labour Laws
Since the course is vast and it is very important for you to cover each and every topic in a given period of time. The questions in Labour Relations Issue have been provided in the overheads. Which Nigerian Court has Jurisdiction to try labour and employment disputes? Industrial relations may be defined as the relations and interactions in the industry particularly between the labour and management as a result of their composite attitudes and approaches in regard to the management of the affairs of the industry, for the betterment of not only the management and the workers but also of the industry and the economy as a whole. Indian labour law makes a distinction between people who work in "organised" sectors and people working in "unorganised sectors". The name of useful websites may also be intimated in this regard. The answers and comments on the questions are as follows: 1.
As per the Indian Constitution, the Central as well as State Governments are empowered to enact suitable legislation to regulate and protect the interests of employees, as well as to create and increase employment opportunities. Depending on the type of industry, nature of work undertaken, number of employees, location, remuneration of the employees, etc. How are different types of worker distinguished? It excludes those employed in a managerial, administrative or supervisory capacity drawing wages exceeding INR 10, from its purview. Special laws are also enacted for the recognition and protection of certain special kinds of employees such as contract labour and fixed-term employees. If not, do employees have to be provided with specific information in writing?
Labour in India
Labour in India refers to employment in the economy of India. In , there were around million workers in India, the second largest after China. In , the organised sector employed Over 94 percent of India's working population is part of the unorganised sector. These include the publicly traded companies, incorporated or formally registered entities, corporations, factories, shopping malls, hotels, and large businesses.
Cover Note. Overview of Labour Law Reforms. Labour falls under the Concurrent List of the Constitution. Therefore, both Parliament and state legislatures can make laws regulating labour. The central government has stated that there are over state and 40 central laws regulating various aspects of labour such as resolution of industrial disputes, working conditions, social security and wages.
Indian labour law refers to laws regulating labour in India. Traditionally, Indian government at federal and state level have sought to ensure a high degree of protection for workers, but in practice, this differs due to form of government and because labour is a subject in the concurrent list of the Indian Constitution. Indian labour law is closely connected to the Indian independence movement , and the campaigns of passive resistance leading up to independence.
INDUSTRIAL, LABOUR AND GENERAL LAWS - ICSI
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