LABOUR POLICY OF INDIA

SHWETA PANDEY:48 SHWETA SOMANI:49

SONALI DAS:50 SUNNY SHINDE:51

SUPRIYA NIGUDKAR:52

LABOUR LAW

• LABOUR LAW

The body of laws, administrative ruling ,and precedents which address the legal rights of and restriction on, working people and their organization

Vision• This policy is the statement of the concerns of this government for

the welfare and protection of labour and to endeavour to empower them and improve their quality of life. Increased production, productivity coupled with a harmonious and peaceful labour relations and a new work culture only will create a conducive climate for rapid industrial investment and growth. This will ensure the successful solutions to the twin problems of retrenchment of labour and creation of new jobs for the unemployed. Government is also committed to providing labour market security, income security and decent working conditions for the working population. This labour policy aims to carry forward these objectives. These aims can be attained only if there is tripartite and mutually beneficial partnership between employers, workers and the Government.

Objectives

• To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories

• prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory

• Basic minimum requirements for ensuring safety, health and welfare of workers

• Applicable to all workers.

• Applicable to all factories using power and employing 10 or more workers, and if not using power, employing 20 or more workers on any day of the preceding 12 months.

Types of Labour Laws

• Two broad categories of labour law:

Individual labour law: Minimum wage, Working time, Health & safety, Anti-Discrimination etc.

Collective labour law: Strikes, Pickets, Workplace involvement etc.

MINIMUM WAGES

• There may be law stating the minimum amount that can be paid per hour

• Example: India, Australia,Canada,China,

France etc

• The minimum wages is usually different from the lowest wage determined by the forces of supply and in a free market and therefore acts as a price floor

WORKING TIME

• Before the industrial revolution,the work day varied between 11 and 14 hour

• With the growth of industrialism and the introduction of machinery longer hours become far more common,with 14-15 hours being the norm

• The eight hour movement struggle finally led to the first law on the length of working day,passed in 1833

HEALTH AND SAFETY

• Another labor laws involve safety concerning workers.The earlier english factory law was drafted in1802 and delt with the safety and health of child textile worker

ANTI DISCRIMINATION

The clause means that discrimination against employee is morally unacceptable and illegal on a variety of grounds, in particular racial or gender discrimination

UNFAIR DISMISSAL

convention no.158 of the international labour organization states that an employee “can’t be fired without legitimate motive”and “before offering him the possibility to defend himself thus on april 28,2006 after the unofficial repeal of the french

Child labour

• Employment of children under age determined by law or custom

• Child labour was not seen as a problem through out most of history only becoming a disputed

COLLECTIVE LABOUR LAWS

Concern the tripartite relationship between employer employee and trade union

Sometime called lobour “union”

STRIKE

• Weapon of the workers

• Decided on a prescribed democratic process

• Sympathy strike• General strike• Certain categories of

person may be forbidden to strike

PICKETS

picketing is a tactic which is a often used by workers during strikes

Secondary picketing

Flying pickets

Scabbing pickets

WORK PLACE INVOLVEMENT

• Workplace consolation statutes exist in many countries,requiring that employers consult their worker on issues that concern their place in the company

• Health• Education• Recreation• RIHS• Sickness Benefit• Maternity Benefit• Disablement Benefit• Dependency Benefit

Welfare Schemes for Workers

Welfare Schemes for Workers

HEALTH

• For Cine workers, there are three dispensaries for medical treatment

• To provide treatment to IOMC Workers and their families, there are 3 hospitals and 16 dispensaries, for LSDM Workers and their families, there are 32 dispensaries, and for remaining workers there is 1 Hospital and 8 Dispensaries,all

over the country.

EDUCATION

(i) Scholarship is awarded to the children of the workers studying from class-I to professional degree courses ranging from Rs.250/- to Rs.8000/-. 

(ii) Financial assistance to the extent of 75% of the cost provideed to management for transporting school going children of the workers.

(iii)  Managements are provided Rs.5000/- for purchase of books in the library.

Welfare Schemes for Workers

RECREATION

• For organizing sports/games, social and cultural activities for workers and their families following provisions are there:-

(i) For purchase of sports gear, 75% of actual cost subject to the maximum Rs.10,000/- in a financial year.

(ii) Provision for celebration of three national festivals Rs.2,500/- per function subject to maximum Rs.7,500/- in a financial year.

(iii) Provision for celebration of seven social functions Rs.2,000/- per function subject to maximum Rs.14,000/- in a financial year.

(iv) Rs.10,000/- for purchase of colour T.V. set and Rs.4,000/- for Black & White T.V. sets to the managements to be placed at workers colony

Welfare Schemes for Workers

  REVISED INTEGRATED HOUSING SCHEME

    Under the RIHS 2007 which is effective from 1.4.2007,

the Implementing Agency is Ministry of Labour and Employment, through the Welfare Commissioners in the field under the Director General Labour Welfare.  

The subsidy of Rs.40,000/- is released in two equal installments.  

Welfare Schemes for Workers

The workers’ contribution is Rs.5000/-, which is deposited after the administrative approval granted by the Office. The first installment will be released, in advance, for construction up to roof-level.

The second installment will be released when the construction reaches up to roof level to enable workers to complete construction in all respect.  

The workers’ construction of Rs.5000/- shall be refunded to him, along with the 2nd instalment.

Welfare Schemes for Workers

SICKNESS BENEFIT

• Sickness Benefit represents periodical payments made to an insured person during the period of certified sickness

• To qualify for this benefit, contribution should have been paid for at least 78 days in the relevant contribution period.

• The maximum duration of Sickness Benefit is 91 days in two consecutive benefit periods

• The insured person is certified sick within 15 days of the last spell for which sickness benefit was last paid

• The sickness Benefit rate is roughly equivalent to 60% of the average daily wages of an insured person with effect from 1.12.2007.

Welfare Schemes for Workers

•  After exhausting the Sickness benefit payable upto 91 days, an insured person if suffering from Tuberculosis/Leprosy, mental and malignant diseases or any other specified long-term diseases, he is entitled to Extended Sickness Benefit at a higher rate of about 70% of average daily wage for a period of two years, provided that he has been in continuous service for a period of 2 years or more

• The list of these long-term diseases is constantly reviewed and 34 diseases are included at present. The Director General/Medical Commissioner have also been authorized to extend the benefit to other rare diseases.

Welfare Schemes for Workers

MATERNITY BENEFIT

• Maternity Benefit implies periodical payment to an insured woman in case of confinement or mis-carriage or sickness arising out of pregnancy, pre-mature birth of child

• For entitlement to Maternity Benefit, the insured woman should have contributed for not less than seventy days in the immediately preceding two consecutive contribution periods with reference to the benefits period in which the confinement occurs or it is expected to occur

Welfare Schemes for Workers

• Maternity Benefit is payable for a maximum period of 12 weeks in case of confinement, 6 weeks in case of mis-carriage and additional one month in case of sickness arising out of pregnancy,pre-mature birth of child or medical termination of pregnancy

• Maternity Benefit continues to be payable in the event of death of an insured woman during her confinement or during the period of 6 weeks immediately following her confinement.

Welfare Schemes for Workers

DISABLEMENT BENEFIT

• In case of temporary disability arising out of employment injury, disablement benefit is admissible to an IP for the entire period so certified by the Insurance Medical Officer/Insurance Medical Practitioner for which the insured person does not work for wages.

• The cash benefit is not subject to any contributory conditions and is payable at a rate equivalent to about 75% of the average daily wage

Welfare Schemes for Workers

DEPENDENT BENEFIT

• Periodical pension is paid to dependants of an insured person who dies as a result of employment injury. The widow and widowed mother receive monthly pension for life or until re-marriage.

• Children get benefit till 18 years of age, in case of infirmity, the benefit continues to be paid, till the infirmity lasts. Married daughters are not entitled to share dependant benefit.

• The periodical increases in amount of pension linked with the cost of living index are sanctioned from time to time to compensate for inflation.

Welfare Schemes for Workers

Labour Policies

The Labour Policies for Small Scale Industries is governed by comprehensive laws. The following laws and policies are applicable for Small Scale Industries in India:

Labour Law Acts

• The Employees Provident Funds and Misc. Provisions Act, 1952

• Employees State Insurance Act, 1948

• Employers Liability Act, 1938

• The Factories Act, 1948

• The Industrial Disputes Act

• The Industrial Employment Act,1946

Labour Law Acts Maternity Benefit Act, 1961The Minimum Wages Act, 1948 The Payment of Gratuity Act, 1972 The Payment of Wages Act, 1936The Trade Union Act, 1926Workmen’s Compensation Act, 1923

Minimum Wages Act, 1948

• Objective: To determine the minimum wages in industry and trade where labour organisations are non-existent or ineffective.

• Scope and coverage : Applicable to all employees engaged to do any work, skilled, unskilled manual or clerical, in a scheduled employment, including out-workers..

• Main provisions Fixation of minimum wage of employeesProcedure for fixing and revising minimum wages Rights of workers

Employees State Insurance Act, 1948

• Objective : To provide for health recover, Medical care and Cash benefits for Sickness ,Maternity ,Employment injury & Pensions to dependents in case of Death (or) Employment injury

• Eligibility: Employees drawing wages not exceeding Rs. 3000/- per month

• Benefits :Compensation for Death Minimum - Rs. 20,000 - Rs. 1,14,000

• Compensation for Permanent disablement Minimum –

Rs. 24,000 Maximum - Rs 70,000

Employees PF and Misc.Provisions Act, 1952

Objective: To make provisions for the future of the industrial worker after he retires or for his dependents in the case of his early death

It includes Compulsory PF Family PensionDeposit linked insurance

Scope and coverage: Application to factories and establishments

employing 20 or more personsApplicable to all persons who are employed directly or indirectly through

contractors in any kind of work

Equal Remuneration Act, 1976

• Payment of equal remuneration to men and women workers for same or similar nature of work is protected under the Act

• No discrimination permissible in recruitment and service conditions except where employment of women is prohibited or restricted by or under any law

The Trade Unions Act, 1926

Objective : To confer a legal and corporate status on registered trade unions

Scope and Coverage: Applicable to unions of workers as well as associations of employers in the whole of India

A central legislation but administered and enforced by the State Government

Main Provisions: Defines trade unionRegistration of a trade union by any seven or nine workers of an

establishment on applying with a copy of the rules of the union, the name and address, and the list of office bearers

Obligations & rights of registered trade unions

Workmen’s Compensation Act, 1923

Objective: To provide compensation for workmen in cases of industrial accidental / occupational diseases in the course of employment resulting in disablement or death. Coverage for persons employed in Factories, Mines, Plantations, the Railways and others mentioned in Schedule II of the Act

Benefits: Compensation for Death Minimum - Rs. 20,000 Maximum - Rs. 1,14,000

Compensation for Permanent disablement Minimum - Rs. 24,000; Maximum - Rs. 70,000 Temporary disablement 50% of wages for a maximum period of 5 years

Labour Policy Highlights

• Creative measures to attract public and private investment.

• 15 lakh new jobs in the coming five years.• A unified and consolidated legislation for social security

schemes.• New Social security schemes for workers in the

unorganised sector.• Social security cards for workers.• Unified and beneficial management of funds of Welfare

Boards.• Re-prioritisation of allocation of funds to benefit

vulnerable workers.• Model employee-employer relationships.

• Long term settlements based on productivity.• Vital industries and establishments declared as `public

utilities`.• Special conciliation mechanism for projects with

investments of Rs.150 crores or more.• Industrial Relations committees in more sectors.• Labour Law reforms in tune with the times. Empowered

body of experts to suggest required changes.• Referenda for recognition of trade unions.

Labour Policy Highlights

• Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary.

• Amendments to Industrial Disputes Act in tune with the times.

• Efficient functioning of Labour Department.• More labour sectors under Minimum Wages Act.• Child labour act to be aggressively enforced.• Modern medical facilities for workers.• Rehabilitation packages for displaced workers.

Labour Policy Highlights

• Restructuring in functioning of employment exchanges. Computerization and updating of database.

• Revamping of curriculum and course content in industrial training.

• Joint cell of labour department and industries department to study changes in laws and rules.

• Kerala Institute of Labour & Employment to be upgraded.• Policy progress monitoring team to review progress of

implementation of policy.

Labour Policy Highlights