Labor Law & Rights in India
For an effective socio-economic development, each country should have some effective legislation to protect the rights of its citizen. Labor laws are the rights provided to improve the conditions of working class and labors. They have given some rights to protect their interest. Each country has passed certain laws to protect these rights for the legal welfare of the labors and their organizations.
Labor laws came into the existence due to the demand for the better working conditions and right to organize. Once the employees became organized, it lead to the increase in the labor cost. Formation of the trade unions became the reason for industrial disputes. Which led them to gain a political advantage over the employers and started hampering the rights of the labor. The relationship between employees and employer become bitter, which leads to the loss of the organization as well as the employees.
So to form a balance between the employer-employee relation and to minimize the disputes, India’s labor laws underwent a major update in the Industrial Disputes Act of 1947. There are more than 200 national and state laws to control the relationships between the employee and the company and their is alternative dispute resolution system in India. Which helps to solve the disputes between individual or company and come out with a win-win solution.
There are some amendments made according to culture society and constitution of India. To be recognized as the legally authorized organization the commercial establishment must implement the central and state government labor laws. Some essential government enactments are as follows:
• The Employees’ Provident Fund Act, 1952
• The Employees’ State Insurance Act, 1948
• The Minimum Wages Act, 1948
• The Contract Labor (Regulation and Abolition) Act 1970
• The Payment of Bonus Act, 1965
• The Maternity Benefit Act, 1961
• The Payment of Wages Act, 1936
• The Equal Remuneration Act, 1976
The companies are required to follow above mentioned enactments for the smooth functioning of their business. The government of India has the authority to punish the organizations that fail to adhere these enactments. For large organizations, it is challenging to follow all these amendments and to keep track of all of them. Therefore, the organizations are recommended to hire a labor law consultant or their are many Labor law firms in India which can handle the organizations labor law related work and the company will be in track of laws and rights of workers.
There are two major categories that describe the labor laws. The first half of the law defines the relationship among trade union, employee and employers. The second half includes the laws that provide the right to workers at the workplace.
Typically, labor laws are the laws pertaining to the employer-employee relationships, ensure the legal rights of the worker and at the same time promote their interest. Labor laws were formulated to address works demands to improve working conditions, wages, working hours, protection of labor rights and settlement of industrial disputes.
Indian labor law formulates the distinction between the people working in an organized and unorganized sector. Therefore, various labor laws apply according to the sector. And for those people who do not fall under any sector, the ordinary law of contract applies. Therefore, the working class as well as organizations have many legal ways to protect their rights.