Labour Law Advisor - Overview

A Labour law advisor in India is a professional who specialises in providing expert guidance and support to employers and employees on various aspects of labour laws in the country. Labour Law Advisor assist clients in navigating the complex legal landscape related to employment, working conditions, and rights and obligations of employers and employees. Labour Law Advisor also help clients understand and comply with relevant laws and regulations and provide support in resolving labour disputes. With their in-depth knowledge of Indian labour laws and experience advising clients, Labour Law Advisors play a crucial role in ensuring compliance and promoting industrial harmony in the workplace.

Factors Influencing Labour Legislation in India

Sure, here are some of the factors that influence labour legislation in India:

The Constitution of India: The Constitution of India guarantees certain fundamental rights to all citizens, including the right to work, the right to form trade unions, and the right to social security. These rights have a significant impact on labour legislation.
International Labour Organization (ILO) Conventions: India is a member of the ILO and is committed to implementing the ILO's conventions on labour standards. These conventions set out minimum standards for the protection of workers, such as the right to a fair wage, the right to safe working conditions, and the right to join a trade union.
The changing nature of work: The nature of work is changing rapidly in India, with the growth of the informal sector and the increasing use of technology. These changes are challenging the traditional labour laws and are forcing policymakers to rethink how to protect workers.
The interests of employers and workers: The interests of employers and workers often conflict when it comes to labour legislation. Employers are generally in favor of flexible labour laws that make it easier to hire and fire employees. Workers, on the other hand, are generally in favor of protective labour laws that ensure their rights are protected.
The economic situation: The economic situation in India also influences labour legislation. During periods of economic growth, there is often less pressure to reform labour laws. However, during periods of economic slowdown, there is more pressure to make labour laws more flexible in order to attract investment and create jobs.
Political factors: Political factors can also influence labour legislation. The ruling party may be more or less supportive of labour unions, depending on its ideology. The party's relationship with employers may also affect its approach to labour legislation.
The role of trade unions: Trade unions play an important role in influencing labour legislation. They can lobby the government to enact new laws or to amend existing laws. They can also strike or protests to pressure the government to take action.
The role of civil society organizations: Civil society organizations can also play a role in influencing labour legislation. They can conduct research on labour issues and advocate for the rights of workers. They can also provide legal aid to workers who have been denied their rights.

The factors influencing labour legislation in India are complex and constantly evolving. The challenge for policymakers is to strike a balance between the interests of employers and workers, and to ensure that labour laws are responsive to the changing nature of work.

What is Labour law?

Labour law in India refers to the set of laws, regulations, and policies that govern the rights and duties of employers and employees in the workplace. It covers working hours, minimum wages, safety and health regulations, social security benefits, and dispute resolution. The primary laws that makeup India's labour laws include the Industrial Disputes Act, the Employees' State Insurance Act, the Payment of Wages Act, the Minimum Wages Act, and the Contract Labour (Regulation and Abolition) Act. The implementation of labour laws in India is carried out by the Ministry of Labour and Employment.

Labour Code in India

With the dynamic nature of the commercial world, it was necessary to amend the existing labour laws and total of 29 existing labour laws were consolidated into 4 new labour codes which are namely:

The Wage Code, 2019
Industrial Relations Code, 2020
Social Security Code, 2020
Occupational Safety, Health and Working Conditions.

These new labour codes are soon to be implemented with state-wise conformity in which your salary, working hours, and weekly offs could be affected. The centre has finalised wages, social security, industrial relations, and occupational safety codes. It is now up to the states to implement them. Upon resignation or termination of employment, the company must pay the employee's full and final dues within two days of the employee's last working day. Almost all the states have pre-published their draft codes, which are to be enforced.

The Labour Wage Code, 2019:
The scope has widened wherein now 50 crore organised and unorganised workers are being provided wage security, social security, and health security.
Over 50 crore workers are guaranteed minimum wages
The minimum wage should be reviewed every five years, and all workers should be guaranteed timely payment of their wages.
Industrial Relations Code, 2020
The Atal Bimit Vyakti Kalyan Yojna provides financial assistance to organised sector workers who lose their jobs
Workers covered by the ESI Scheme are eligible to receive this type of unemployment allowance
Retrenchments provide 15 days' wages for re-skilling. For the worker to learn new skills, wages would be credited directly to his bank account.
Social Security Code, 2020
Institutionalised system has been made for collecting contributions from employers and workers.
Employment State Insurance Corporations’ hospitals and dispensaries have been expanded to provide free treatment in exchange
All workers engaged in hazardous works will be under the ESIC.
Fixed term employees to be given the same Social Security benefit as permanent employees.
Aadhaar based Universal Account Number (UAN) has been introduced to ensure seamless portability.
Occupational Safety, Health and Working Conditions(OSH Code), 2020
Free and mandatory annual health check ups are to be provided by employers.
Appointment letters must be provided to workers.
A Building and other Construction Workers’ Cess fund is provided for construction and building workers
Migrant workers will benefit from the OSH Code and it also addresses the anomalies of the Interstate Migrant Workers Act, 1979
The 'One Nation - One Ration Card' provides ration facilities to New Labour Code For New India Inter-State Migrant workers in the state they are working in, as well as ration facilities to their family members in the state where they live.

Labor Legislation in India:

Labour legislation were first drafted under British Raj in the country that primarily ensured British employees' safety: Factories Act-1883.
The democratic constitution of our country also takes its basic framework for labour laws from the British Rules
Although the labour legislation considers organised and unorganised labourers, most of the laws govern and protect the organised (formal) sector
While nearly 93% of the country's workforce is unorganised or informal, it faces a huge disadvantage in labour legislation.

Labour Legislation in India

ActApplicable toPurposeOther Comments
Building and Other Construction Workers Act, 1996The law applies to construction sites where ten or more workers are directly employed by the contractor.Using cess collected from construction work for the welfare of workers is the purpose of the Act.The law applies to construction sites where the contractor employs ten or more workers. Not applicable to Building and construction work where Factories Act, 1948 or Mines Act, 1952 is applicable
Contract Labour Act, 1970Over the past 12 months, at least 20 contract workers have been employed by the companyContract workers' working conditions are to be controlledCasual workplaces are not covered. Contracting labour can only be done by organisations registered under this Act.
Minimum Wages Act, 1948The law applies to the entire country. The law applies to any employment that employs 1000 employees in the state in question.Providing minimum wages to organised sector workers The government should be empowered to fix minimum wages and revise them every five years.Except with the consent of the Central Government, it does not apply to employees of any undertaking owned by the Central Government or of the federal railway.

Labour Act in India

Enacted and Enforced by Federal GovernmentLabour Laws in India Enacted by Federal Government, Enforced by Federal and State GovernmentsEnacted by Federal Government, Enforced by State Government
  • The Employees' State Insurance Act, 1948
  • The Employees' Provident Fund and Miscellaneous Provisions Act, 1952
  • Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
  • The Child Labor Law (Prohibition & Regulation) Act, 1986
  • Unorganised Workers Social Security Act, 2008
  • The Contract Labor (Regulations and Abolition) Act, 1970
  • The Equal Remuneration Act, 1976
  • The Industrial Disputes Act, 1947
  • The Industrial Employment (Standing Orders) Act, 1946
  • The Inter State Migrant Workmen (Regulation of employment and conditions of service) Act, 1979
  • The Labor Laws (Exemption from furnishing returns and maintaining registers by certain establishments) Act, 1988
  • The Maternity Benefits (Amendment) Act, 2017 and The Maternity Benefits Act, 1961
  • The Payment of Bonus Act, 1965
  • The Payment of Gratuity Act, 1972
  • The payment of Wages Act,1936.
  • The Employers Liability Act, 1938
  • The Trade Unions Act, 1926
  • The Weekly Holidays Act, 1942
  • The Workmen's Compensation Act, 1923
  • The Employment Exchange (Compulsory Notification of Vacancies), Act, 1959
  • The Children (Pledging of Labor) Act, 1938
  • The Bonded Labor System (Abolition) Act, 1976 Act

    • Objectives and Principles of Labour Legislation

    The objectives and principles of labour legislation are to:

    Protect the rights of workers: Labour legislation aims to protect the rights of workers, such as the right to a fair wage, the right to safe working conditions, and the right to join a trade union.
    Promote social justice: Labour legislation also aims to promote social justice by ensuring that all workers are treated fairly, regardless of their race, religion, gender, or nationality
    Encourage economic development: Labour legislation can also help to encourage economic development by ensuring that workers are productive and efficient.
    Maintain industrial peace: Labour legislation can also help to maintain industrial peace by providing mechanisms for resolving disputes between employers and workers.
    Enhance the welfare of workers: Labour legislation can also help to enhance the welfare of workers by providing for social security benefits, such as pensions and health insurance.

    Labour Law Compliances in India

    Labour law compliance ensures and prevents industrial setups and/or companies from exploiting their employees. Your company or industry is required to follow the set guidelines as per the respective Acts and Rules in order to avoid legal action. The federal and state labour law compliance lists enable a wider scope for imposition, primarily to ensure the employees' safety and well-being. In any large-scale or small-scale industry, the conservation of workmen's rights has been of primary importance since the Industrial Disputes Act (1948). Furthermore, industry-specific laws that are enacted to determine the various work environments and types of labour utilised by different industries must be taken into consideration as well.

    Types of Labour law

    In India, labour laws can be broadly classified into the following categories:

    Wages and Compensation: These laws regulate the minimum wages, payment of overtime, bonus, gratuity, and other forms of compensation for employees.
    Social Security: These laws provide for social security benefits such as provident fund, pension, health insurance, and maternity benefits to employees.
    Working Conditions: These laws regulate the working hours, leave, holidays, and other conditions of work for employees.
    Health and Safety: These laws provide for the safety and health of employees in the workplace.
    Industrial Relations: These laws regulate the relationship between employees and employers, including the settlement of industrial disputes.
    Equality and Non-Discrimination: These laws promote equality and prevent discrimination based on gender, caste, religion, and other grounds.
    Child Labour: These laws prohibit the employment of children below a certain age and regulate the working conditions of children.

    The labour laws in India are constantly evolving to ensure the protection of the rights of employees and provide them with fair working conditions.

    Labour Law for Employees

    Employee termination is also regulated by labour law. In India, compliance is enforced by the following laws:

    The Industrial Disputes Act, 1948
    Regulation of Employment and Conditions for Building and Construction Workers, 1996.
    Indian Contract Act, 1872
    Maternity Benefit Act of 2017, Payment of Gratuity Act of 1972, and
    Respective State Labour Laws

    As under the Industrial Disputes Act:

    Retrenchment: Employers may terminate a workman's service for any reason other than disciplinary action inflicted by way of punishment.
    Lay-off: Due to shortages of raw materials, machinery breakdowns, etc., the employer is temporarily unable to assign work to the employees during lay-offs.
    Closure: On the verge of closing down the establishment, the employer has to terminate the employees.

    Case laws

    Termination of Employment due to misconduct: Employee misconduct is 'inconsistent with the discharge of duty' or 'prejudicial to the employer's interests or reputation,' according to the Supreme Court in Govinda Menon v. Union of India.
    Management of Kairbetta Estate, Kotagiri Po v. Rajamanickam: In such a case of no-prior notice, compensation is not required in a lockout initiated by management due to a labour dispute.
    Reinstatement for terminated employee: In the case of Madhya Bharat Gramin Bank v. Panchamlal Yadav, the court had asked whether the respondent (employee) had been terminated prior to being given notice by the bank, and the court ruled that the employee was not entitled to reinstatement with back wages. The court cited certain precedents to support its claim that a violation of Section 25F of the IDA does not automatically result in reinstatement with back wages. The court also noted that 'the relief to be granted depends on the facts of each case'.

    Labour Law Amendments 2023

    The Labour Law Amendments 2023 are a set of changes to the labour laws in India. The amendments were passed by the Parliament in April 2023 and are intended to make the labour laws more flexible and employee-friendly.

    Some of the key changes in the Labour Law Amendments 2023 include:

    Unified Wage Code: The Wage Code consolidates four existing laws relating to wages, namely, the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976. The new code sets out a single set of rules for all employees, regardless of their industry or sector.
    Occupational Safety, Health and Working Conditions Code: The Occupational Safety, Health and Working Conditions Code consolidates 13 existing laws relating to occupational safety, health and working conditions. The new code sets out comprehensive provisions for the safety and health of workers, including the right to form safety committees and the right to compensation for occupational diseases.
    Industrial Relations Code: The Industrial Relations Code consolidates four existing laws relating to industrial relations, namely, the Industrial Disputes Act, 1947, the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the National Industrial Relations Commission Act, 1960. The new code sets out a single set of rules for all industrial relations matters, including the formation of trade unions, the settlement of industrial disputes, and the adjudication of unfair labour practices.
    Social Security Code: The Social Security Code consolidates four existing laws relating to social security, namely, the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, the Employees' State Insurance Act, 1948, the Maternity Benefit Act, 1961, and the Employees' Compensation Act, 1923. The new code sets out a single set of rules for all social security matters, including pension, insurance, and maternity benefits.

    The Labour Law Amendments 2023 are a significant step towards modernizing the labour laws in India. The amendments are expected to make it easier for businesses to hire and fire employees, and to provide better working conditions for workers

    However, the amendments have also been criticized by some labour unions, who argue that they will lead to lower wages and fewer benefits for workers. The impact of the amendments will only be known over time.

    Online Portal Shram Suvidha

    'Shram Suvidha' is a one-stop online portal launched by the government. Employers are issued a labour identification number (LIN) when they register on the portal to access complaints and inspection reports, reducing the need to contact government officials.

    Instead of filing separate returns under each of these labor law advisor , the portal provides a simplified single annual return form. This portal provides the convenience of making payments for both EPF registration contributions and state insurance contributions.