Free Essay

Corporate Compliance of Labour Law

In:

Submitted By Vasanthsridharan
Words 9965
Pages 40
Assignment December 16, 2012

CORPORATE COMPLIANCE OF LABOUR LAWS

INDEX PAGE No
Cover Page with Contents 1
Introduction 2
Conceptual Discussions 3
Implementation of Labour Laws 6
Labour Laws Prevailing in Other Countries 26
Data Analysis & Interpretation 32
Conclusion & Recommendation 38
Bibliography 40

Chapter – 1
INTRODUCTION
1. Labour law also known as employment law is a body of laws, administrative rulings and precedents which address the legal rights of, and restrictions on, working people and their organisations. It mediates many aspects of the relationship between trade unions, employers and employees. In brief, Labour law defines the rights and obligations as workers, union members and employers in the workplace. Generally Labour law covers:-
(a) Industrial Relations – Certification of Unions, Labour-management relations, collective bargaining and unfair labour practices
(b) Workplace health and safety
(c) Employment standards, including general holidays, annual leave, working hours, unfair dismissal, minimum wage, layoff procedures and severance pay.

2. There are two broad categories of Labour law. First, collective labour law relating to the tripartite relationship between employee, employer and union. Second, individual labour law concerning employees’ rights at work and through contract of work.

3. Once an investor sets-up a business in India, whether a liaison office, project office, branch or company, that business needs to comply with Indian regulations and Labour law compliance is no exemption.

4. Here in the further chapters we discuss the history and evolution of Labour laws in India, the various labour laws and broad categories they can be appropriated to viz. in terms of welfare, payroll, administration, social measures, etc. A brief overview of the various labour laws and the statutory compliance check list for the industry.

5. Further we will look at the various labour laws prevalent in other countries across the globe and try to draw a comparison on the similarities and differences on the labour laws in India. Chapter – 2
CONCEPTUAL DISCUSSION

History & Evolution of Labour Laws in India

1. The law relating to labour and employment is also known as Industrial Law in India. The history of labour legislation in India is interwoven with the history of British colonialism. Indian labour law and industrial relations is often divided into discrete time periods, reflecting important stages in the evolution of the Indian state as well as stages of economic development and policy.

2. The earliest regulation was largely designed as labour control, but this was eventually added to by a sequence of factory-type regulation, providing for some basic levels of protection, between the 1880s and the 1930s. This legislation essentially reflected an accommodation of sorts between the interests of British industry, seeking protection for its domestic enterprises against cheap foreign labour, and Indian social reformers intent on improving what were regarded as sub-human working conditions in Indian factories. In the view the above, this early period of labour law reform was largely ‘formal or unimportant’ constituting only a ‘minimum of interference with the working conditions of labour and the relationship between the employer and the worker’.

3. The second period (1937-1947) was more creative, and began with the emergence of ‘Provincial Autonomy’ in the second half of the 1930s, the focus of the Indian Congress Party on worker’s rights (including such matters as standards of living, trade union rights, the right to strike and so on), and the introduction of greater uniformity through the extension of workplace regulation.

4. The third period analysis begins with the post-Independence legislation of the late 1940s and early 1950s. In the immediate post-war period it was agreed that the Indian Central government would be primarily responsible for labour legislation, and the promotion of labour’s interests, reflecting a five-year plan of development ‘dealing with all phases of the worker’s life, of housing, welfare, work, better working conditions, and fair wages’. Many of these social values were articulated in the Constitution of India 1950, particularly its commitment to economic, political and social justice in the Preamble, and its general egalitarian conception of national development.

5. However, important progress made in labour legislation in the immediate post-World War One period, pointing specifically to the influence of several International Labour Organisation (ILO) conventions and the Royal Commission on Labour in the 1920s as major advances.

6. The industrial / labour legislation enacted by the British were primarily intended to protect the interests of British employers. Considerations of the British economy were paramount in shaping the early laws. This led to the enactment of Factories Act of 1883. Thus India received the first stipulation of eight hours of work, abolition of child labour, restrictions of women in night employment and introduction of overtime wages for beyond eight hours.

7. In the 1920’s, various factors combined to alter the industrial and political landscape, including the emergence of a strong nationalist movement, the rapid development of trade unions. At the same time the newly created International labour organization (ILO) began to have an influence on labour policy in India.

8. Much of the legislation of this period was a continuation of the ‘factory’-style regulation of the pre-war period, dealing with hours of work, rest periods, female and child protections, health and safety and so on. Typical protective legislation of the period includes the Factories Act 1922, the Mines Act 1922, and the Workmen’s Compensation Act 1923, much of it responding to the ratification of various relevant ILO conventions by the colonial Indian government.

9. The emergence of a more modern approach to the regulation of industrial relations is the two enactments in this period: the Trade Unions Act 1926 and the Trade Disputes Act 1929. The regulatory framework set down in these two provisions continues formally to underpin the collective labour law system of present day India.

10. The Trade Unions Act 1926 provided for the registration of trade unions (though registration was not made compulsory), gave unions a legal status, and extended some protections against civil and criminal liability in the course of industrial disputes. The Act was limited in certain respects (for example unregistered unions were excluded from the Act’s protections), and the legislation provided no support for a collective bargaining system as such, insofar as there was no obligation upon employers to bargain with unions (even registered unions) in the course of an industrial dispute, nor, in the case of such bargaining, was there any legal obligation to bargain in good faith.

11. The first Indian statute to regulate the relationship between employer and employee (workmen) was The Trade Disputes Act 1929 which placed severe limitations upon the right to strike, and provided for the compulsory reference of industrial disputes to a conciliation board or a court of enquiry. The outcomes of the reference, however, were not binding upon the parties.

Chapter – 3
IMPLEMENTATION OF LABOUR LAWS

Constitutional Provisions with regard to labour laws

1. The labour laws of independent India derive its origin, inspiration and strength partly from the view expressed by important national leaders during the days of national freedom struggle, partly from debated of the Constitutional Assembly and partly from the provisions of the Constitution and the International Conventions and Recommendations. The labour laws were also influenced by the important human rights and the conventions and standards that have emerged from the United Nations. They have also been significantly influenced by the deliberations of the various sessions of the Indian Labour Conference and the International Labour Conference. Some of the conventions and standards of the UN include:-
(a) Right to work of One’s choice
(b) Right against discrimination
(c) Prohibition of Child Labour
(d) Just and Humane condition for work
(e) Social Security
(f) Protection of wages
(g) Redress of grievances
(h) Right to organize and form trade unions
(i) Collective bargaining and participation in management.

2. The relevance and dignity of human labour and the need for protecting and safeguarding the interest of labour as human beings has been enshrined in Chapter III and Chapter IV of the Constitution of India keeping in line with the Fundamental Rights and the Directive Principles of State Policy.

3. Labour is a concurrent list subject I the Constitution of India implying both the Union and the state governments are competent to legislate on labour matters and administer the same. The legislations can be categorized as follows:-

(a) Labour laws enacted by the Central Govt., where the Central Government has the sole responsibility for enforcement.
(b) Labour laws enacted by the Central Govt. and enforced both by Central and State Governments.
(c) Labour laws enacted by the central Govt. and enforced by the State Govt.
(d) Labour laws enacted and enforced by the various State Govts which apply to respective states.

Labour laws categorized based on legislature

(a) Labour laws enacted by the Central Govt., where the Central Government has the sole responsibility for enforcement.
(i) The Employees’ State Insurance Act – 1948
(ii) The Employees’ Provident Fund and Miscellaneous Provisions Act – 1952
(iii) The Dock Workers (safety, health and welfare) Act – 1986
(iv) The Mines Act – 1952
(v) The Iron Ore Mines, Manganese Ore Mines and Chrome Ore mines Labour Welfare (Cess) Act – 1976
(vi) The Iron Ore Mines, Manganese Ore Mines and Chrome Ore mines Labour Welfare Fund Act – 1976
(vii) The Mica mines Labour Welfare Fund Act – 1946
(viii) The Beedi Workers Welfare Cess Act – 1976
(ix) The Limestone and Dolomite Mines Labour Welfare Fund Act – 1972
(x) The Cine Workers Welfare Cess Act – 1981
(xi) The Beedi Workers Welfare Fund Act – 1976
(xii) The Cine Workers Welfare Fund Act – 1981

(b) Labour laws enacted by the Central Govt. and enforced both by Central and State Governments.
(i) The Child Labour (Prohibition and Regulation) Act – 1956
(ii) The Building and Other Constructions Workers’ (Regulation and Employment and conditions of service) Act – 1996
(iii) The Contract Labour (Regulation and Abolition) Act – 1970
(iv) The Equal Remuneration Act – 1976
(v) The Industrial Disputes Act – 1947
(vi) The Industrial Employment (Standing Orders) Act – 1946
(vii) The Inter-State Migrant Workmen (regulation of Employment and Condition of Service) Act – 1976
(viii) The Labour Laws (Exemption from furnishing Returns and Maintaining Registers be certain establishments)Act 1988
(ix) The maternity benefits act – 1961
(x) The minimum wages Act – 1948
(xi) The payment of Bonuses act – 1965
(xii) The payment of gratuity act – 1972
(xiii) The payment of wages act – 1936
(xiv) The Cine workers and Cinema theatre Workers (Regulations of Employment) Act – 1981
(xv) The Building and Other Construction Workers Cess Act – 1996
(xvi) The Apprentices Act – 1961
(xvii) Unorganized Workers Social Security Act – 2008
(xviii) Working Journalists (Fixation of rates of wages) Act – 1958
(xix) Merchant Shipping Act – 1958
(xx) Sales Promotion Employees Act – 1976
(xxi) Dangerous Machines (regulation) Act – 1983
(xxii) Dock Workers (regulation of employment) Act – 1948
(xxiii) Dock Workers (regulation of employment) (inapplicability of major ports) Act – 1997
(xxiv) Private Security Agencies (regulation) Act – 2005

(c) Labour laws enacted by the central Govt. and enforced by the State Govt.
(i) The Employers’ Liability Act – 1938
(ii) The Factories Act – 1948
(iii) The Motor transport workers act – 1962
(iv) The personal injuries (Compensation Insurance) Act – 1963
(v) The personal injuries (Emergency Provisions) Act – 1963
(vi) The plantation labour act – 1951
(vii) The sales Promotion Employees (condition of Service) Act – 1976
(viii) The Trade Unions Act – 1926
(ix) The Weekly Holidays Act – 1942
(x) The working Journalists and other newspaper employees (condition of service) and Miscellaneous provisions Act – 1955
(xi) The Workmen’s compensation Act – 1923
(xii) The Employment Exchange (compulsory Notification of Vacancies) Act – 1959
(xiii) The Children (pledging of Labour) Act – 1938
(xiv) The bonded labour system (Abolition) Act – 1976
(xv) The beedi and cigar workers (conditions of employment) Act – 1966

(d) Further we have the individual labour laws enacted and enforced by the State Govt applicable for the respective states.

Appropriation of Labour Laws

4. Broadly Labour laws can be appropriated as under:-

(a) Labour laws related to welfare measures
(i) The Employee’s Provident Fund & Miscellaneous Provisions Act, 1952
(ii) The Employees’ State Insurance Act, 1948
(iii) The Maternity Benefit Act, 1961
(iv) The Payment of Gratuity Act, 1972
(v) The Workmen’s Compensation Act, 1923

(b) Labour laws related to payroll
(i) The Equal Remuneration Act, 1976
(ii) The Minimum Wages Act, 1948
(iii) The Payment of Bonus Act, 1965
(iv) The Payment of Wages Act, 1936

(c) Labour laws related to administration
(i) The Factories Act, 1948
(ii) The Indian Fatal Accidents Act, 1985
(d) Labour laws related to social measures
(i) The Apprentices Act,1961
(ii) The Contract Labour (Regulation & Abolition) Act, 1970
(iii) The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

(e) Labour laws related to fire-fighting role of Personnel and HR Manager
(i) The Industrial Dispute Act,
(ii) The Industrial Employment (Standing Orders) Act, 1946

Some of the important compliance of Labour law is enumerated in brief:-

The Apprentices Act, 1961

Applicability: It is a statutory obligation of every industry/establishment having training facilities according to syllabus in a designated trade under the Apprentices Act, 1961 to train a number of apprentices according to ratio of the trade in their establishment.

Major Compliance:
1. General Obligations:
(a) To provide the apprentice with training in his trade in accordance with Act and rules.
(b) To ensure that a qualified person is placed in charge of the training.
(c) To carry out obligation under the contract.
2. Registration of contract of apprenticeship: To send the apprenticeship advisor the contract of apprenticeship within 3 months of date on which it was signed.
3. Payment to apprentice: To pay to every apprentice during the period of apprenticeship such stipend at a rate prescribed under the Act.
4. Working hours for apprentice:
(a) Total number of hour: 42 to 48 hours per week.
(b) Trade apprentice undergoing basic training: 42 hours.
(c) Trade apprentice undergoing 2nd year: 42 to 45 hours.
(d) Trade apprentice undergoing 3rd and subsequent years: As per the workers in the trade in the same establishment.
(e) No trade apprentice shall be engaged between the hours of 10 p.m. to 5 p.m. without the permission of Apprenticeship Advisor.
(f) Graduate or technician apprentice: Normal hours of work of the dept.
5. Health, welfare and safety of apprentice: as per Factories Act.
6. Compensation for injury: as per Workmen Compensation Act.
7. Compensation for termination of apprenticeship: 6 months’ last drawn stipend by both parties.

The Contract Labour (Regulation & Abolition) Act, 1970

Applicability:
1. Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
2. Every contractor who employs or who employed on any day of the preceding twelve months twenty or more workman.

Not applicable to: Establishment which carries on work of a casual nature occasionally.

Effect of non-registration: The principal employer cannot employ contract labour in establishment.

Major Compliance:
1. It is obligatory on every contractor not to undertake or execute any work through contract labour without obtaining a valid licence from the licencing officer.
2. Obligation to provide certain amenities:
(a) Provision of canteens
(b) Rest Rooms
(c) Drinking water and other facilities like latrines and urinals
(d) First-aid facilities
(e) Creaches
3. It is obligatory on principal employer to see that wages of the workers are paid every month on a fixed date and time and on termination of their employment before the expiry of 2nd working day after termination.

Maintenance of Records:
Form No. XXIV Half yearly Return in duplicate within 30 days by contractor
Form No. XII Register of Contractor - Maintained by Principal employer for each establishment
Form No. XIII Maintained by Contractor for each establishment
Form No. XIV Contractor to issue an employment card to each worker within 3 days of employment
Form No. XV A service certificate in case of termination of wokman
XVI-A muster roll, XVII-Register of wages, XX-deduction for damange, XXI – Register of fines, XXII- Register of advances, XXIII-Register of overtime

Notes: Company has to register every year
1. In a year labour should not work above 240 workig days
2. Every 80 days employer should break labour service – need to update every 80 days with the contractor
3. Contractor should pay minimum wages to the labour
Documents required:
1. License with the contractor & registration of the company
2. Contractor – PF no., ESIC no.,

The Employee’s Provident Fund & Miscellaneous Provisions Act,1952

Applicability:
1. Applicable to every establishment in which 20 or more persons are employed.
2. Every employee drawing wages and DA upto Rs.6500/- will be eligible to become a member.

Major Compliance:
1. Declaration by person taking up employment in writing that whether or not he is a member of the fund and his account number, particulars of the last employer.
2. In case of contractor, it is the responsibility of the principal employer to ensure that provisions of this act are complied by Contractors.

Payment to be made to PF authorities due 15th of the following month:
1. Employee and Employer Pf Due
2. Admn and Inspection Charge 1.1 % of Salary
3. Pension Fund
4. Insurance Fund – 0.5% of Basic + DA
5. Insurance Fund Inspection and Admn Charge 0.01%

Submission of Returns:
Form No. Particulars Due Date
Form 9 Details of employees on the 1st day of coverage Within 1 month of coverage
Form 2 Nomination Form Immediately on joining the fund
Form 5 Addition of members 15th of the following month
Form 10 Deletion of members 15th of the following month
Form 12 Detail of payments made 21st of the following month
Form 3A A memberwise ledger cards posted monthly 31st May Each Year
Form 6A Abstract of Form 3A for the year 31st May Each Year
Form 5A Return of ownership Once in the beginning
Form 19 Withdrawal of PF in case of retirement/resignation
Form 13 Transfer of PF
Form 31 Loan (minimum service 5yrs)

Settlement:
1. Settlement before completion of 10yrs: Form 19 (PF withdrawal); Form 10c (Pension withdrawal)
2. Settlement after completion of 10yrs: Form 19 & 10D
3. Death of the Employee: Form 20 & 10D

The Employees’ State Insurance Act, 1948

Applicability:
1. Applicable to every establishment in which 20 or more persons are employed.
2. Every employee drawing wages and DA upto Rs. 10,500/- will be eligible to become a member.
3. Monthly Challan – 21st of the next month is the last date of submission
Contribution: 6.5% of Basic + DA
1.75% deduct from Employee Salary on Basic + DA
4.75% employer contribution
4. Half yearly return – 6A
5. Company should inform within 48 hours to the Factory Inspector and ESIC inspector if any fatal accident (which can be result into death) Note: If the person fail to inform it is being created as a death or murder against a Company

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

Notification of vacancies to employment exchanges: Employer in every establishment in any sector before filing up any vacancy shall notify that vacancy to employment exchange. But Acts says about only notification and doesn’t impose obligation on employer to recruit any person through the employment exchange.

Act not applicable to:
1. Agriculture Industry
2. Domestic Service
3. Duration is less than 3 months
4. Unskilled office work
5. Staff of Parliament, employment through UPSC or like agency
6. Employment carries a remuneration less than Rs.60/- per month.

Time limit for the notification of vacancies:
1. Local employment exchange: 15 days before the date on which applicants will be interviewed.
2. Central employment exchange: 4 weeks before the date on which applicants will be interviewed.

Submission of returns:
1. Quarterly Return: Form No. ER-1 within 30days of due dates.
2. Biennial Return: Form No.ERIL within 30 days of due date as notified in the official gazette

The Equal Remuneration Act, 1976

Major Compliance:
1. No Employer shall pay to any worker at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex for performing the same work or work of a similar nature.
2. No employer for complying above provision reduces the rate of remuneration.
3. No discrimination while recruitment against women except where the employment of women is prohibited or restricted under any law.

Maintenance of Register: in form no. D relation to the workers employed.

The Indian Fatal Accidents Act, 1985

Object: To Provide compensation to families for loss occasioned by the death of a person caused by actionable wrong.

Main Provision:
1. In case of a death of a person by wrongful act, neglect or default, the party responsible shall be liable to an action or suit for damages.
2. Every such action or suit shall be for the benefit of the wife, husband, parent and child of the person whose death shall have been so caused.
3. Not more than one action or suit shall be brought in respect of same subject - matter of complaint.

The Industrial Employment (Standing Orders ) Act, 1946

Applicability: The Act applied to every industrial establishment which means:
1. Tramway or motor transport
2. Air transport other than for defense purpose
3. Dock-wharf or jetty
4. Inland vessel
5. Mine, quarry or oil fields
6. Plantation :
(a) A factory under Factories Act
(b) A Railway under Railways Act
(c) The establishment who for the purpose of fulfilling a contract with the owner of any industrial establishment employs workmen.

Certification of standing order:
1. Within 6 months from the date of applicability, the employer shall submit to the Certifying Officer 5 copies of the draft standing orders proposed by him for adoption in his industrial establishment.
2. Such standing order should be in conformity with Model Standing Order.
3. Encl: A statement giving prescribed particulars of the workmen employed and the name of the trade union if any.

Posting of Standing order: The certified standing order shall be prominently posted in English and in local language on special boards or near the entrance and in all departments where the workmen are employed.

Payment of subsistence allowance:
1. If any workmen is suspended pending inquiry, the employer shall pay subsistence allowance to the workers at following rates:
(a) 1st 90 days: 50%
(b) 91 to 180 days: 75%
(c) After 180 days: 100%

The Maternity Benefit Act, 1961

Applicability:
1. To every establishment being a factory, mine or plantation including Govt. establishment and wherein person is employed for the exhibition of equestrian acrobatic and other performances.
2. To any establishment in which 10 or more persons are employed or were employed on any day of the preceding 12 months

Prohibition of employment by workmen during certain period: During 6 weeks immediately following the day of delivery or miscarriage

Prohibition of work by workmen during certain period:
During 1 month immediately preceding the period of six week before the date of expected delivery, if the work
(a) which is of an arduous nature or
(b) which involved long hours of standing or
(c) which in any way is likely to interfere with her pregnancy or normal development of the foetus or is likely to cause her miscarriage or to adversely affect her health.

Payment of Maternity Benefit:
1. Payment of maternity benefits at the rate of the average daily wages for the period of actual absence.
2. Average daily wages: Wages paid during the period of 3 calendar months immediately preceding the date of her expected delivery.
3. The workmen must have actually worked for a period of not less than 80 days in the twelve months immediately preceding the date of her expected delivery.
4. Maximum period entitled: Maximum 12 weeks of which not more than 6 weeks shall precede the date of her expected delivery.

Leave for
1. Miscarriage: 6 weeks immediately following the day of her miscarriage
2. Medical termination of pregnancy: 6 weeks immediately following the day of her pregnancy.
3. Tubectomy operation: 2 weeks immediately following the day of her pregnancy.

Nursing Breaks: Every woman delivered of a child who returns to duty after such delivery shall be allowed in the course of her daily work two breaks for nursing the child until the child attains the age of 15 months

The Minimum Wages Act, 1948

Major Compliance:
1. To make payment of overtime in excess of number of hours constituting normal working day at the rate fixed under the Act or any other law whichever is higher.
2. Minimum wages payable shall be paid in cash.
3. If the custom is to pay wages in kind, then wages can be paid in kind.
4. Govt. can authorise supply of essential commodities at concessional rate.
5. In respect of any scheduled employment, a notification u/s 5 is in force, then employer shall pay wages at a rate not less than the minimum rate fixed under notification.
6. Any contract allowing to pay wages less than minimum is null and void.
7. Sri Dharam Motor Services v. Industrial Tribunal, Madras: A worker can be asked to work for more than 6 days a week provided he is paid extra on the overtime rate.

The Payment of Bonus Act, 1965

Applicability: to every factor and other establishment in which 20 or more persons are employed on any day during an accounting year.

Major Compliance:
1. Minimum Bonus: 8.33% if salary or wages earned during accounting year or Rs.100 whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
2. Maximum Bonus: 20% of salary or wages only if allocable surplus exceeds the amount of minimum wages bonus payable under the act
3. Time Limit: Within 8 months from the close of accounting year.
4. Salary or wage calculation:
(a) Salary or wage exceeding Rs.2500 : Rs.2500
(b) Salary or wages less than Rs.2500 : Actual
(c) Salary or wages: Basic + DA

Maintenance of Registers and Returns:
Form A – Computation of allocable surplus
Form B – Set on and Set off the allocation surplus
Form C –Detail of amount of bonus due to each of the employee, deduction u/s 17 and 18 and actual amount disbursed
Form D – Return to be submitted within 30 days after the expiry of the time limit

The Payment of Gratuity Act, 1972

Applicability:
1) To every factory and other establishment in which 10 or more persons are employed.
2) Once this is applicable, later on even if employees are reduced to less than, this Act remains applicable.

Major Compliance:
1. Duty of employer to give notice of application of the Act to controlling authority.
2. Payment to Gratuity:
(a) Eligibility: Continuous 5 years of service
(b) In case of death of employee, payment has to be made to minor.
(c) Amount of Gratuity:
(i) Normal: Last drawn salary/26*15*no of year of service
(ii) Seasonal: Last drawn salary/26*7*no of year of service
(iii) Salary: Basic+ DA
(d) Maximum amount: Rs.350000
(e) Time limit: within 30 days of form due date
3. Duty of employer to determine the amount of gratuity and give notive in writing to the person to whom the gratuity is payable and to the controlling authority.
4. Duty of the employer to give notice of opening, change or closure of establishment
5. Duty of the employer to obtain nominations from the employees.
Eg. If the salary (Bonus + DA) = 5,000
Gratuity = 5000/26 (working days) x 15 (days service) x nos of year service completed

The Payment of Wages Act, 1936

Person Responsible under the Act:
Nature of Employer Person Responsible
Factory Manager under Factories Act, 1948
Industrial Establishment A person responsible to the employer for supervision and control of the Industrial Establishment
Railway Railway Administration

Major Compliance:
1. Authorised persons have to fix the wage period which should not be more than 1 month.
2. Time Limit for payment of wages
Particulars Time limit
Less than 1000 persons: Before expiry of 7th working day of wage period
More than 1000 persons: Before expiry of 10th working day of wage period
Termination of employee: Before expiry of 2nd working day of termination
3. Wages must be paid in current coin and currency note or cheque or crediting in Bank account (provided for cheque and credit subject to written authorization)
4. Obligation for imposing fine:
(a) Previous approval of authority of State Govt.
(b) Notice to be exhibited in premises
(c) Opportunity of showing cause against fine to employee
(d) Total fine should not exceed 3 % of wages payable
(e) Age of employee must be more than 15 years
(f) Fine can’t be recovered in installment and after the expiry of 60 days on which it was imposed.
(g) Fine recovered must be applied for purposes beneficial to the persons employed in the factory.

The Workmen’s Compensation Act, 1923

Employer’s liability for compensation:
1. Employer is liable to pay compensation as per Chapter II in case of personal injury by accident arising out of and in the course of employment.
2. In following cases, employer is not liable:
(a) if injury doesn’t result in total or partial disablement for a period not exceeding 3 days
(b) if injury has not resulted in death and is caused by accident because of following
(i) influence of drink or drugs, or
(ii) ii) willful disobedience of an order expressly given or a ruled framed for the purpose of securing safety of workmen, or
(iii) iii) willful removal of any safety guard or other device provided for the purpose of securing the safety of workman.
3. Occupational disease shall be deemed to an injury if it is proved that
(a) Continuous service
Nature of employment Continuous Service
Part A of Schedule III NA
Part B of Schedule III 6 months
Part C of Schedule III CG will specify
(b) The disease has arisen out of and in the course of the employment.
4. More than one employer in case of part C, then payment of compensation will be in proportion as commissioner may decide.

Amount of Compensation:

Particulars of Injury Amount of Compensation

Death from Injury 50 % of monthly wages* relevant factor or Rs.50000/-whichever is more
Particulars of Injury Amount of Compensation
Permanent total disablement 60 % of monthly wages* relevant factor or Rs.65000/-whichever is more

Permanent partial disablement
a) Injury in Part II of Schedule I % specified in schedule
b) No specified in injury in Schedule I % decided by qualified medical practioner

Temporary disablement whether partial Half monthly payment equivalent to 25% of monthly or total wages paid as per provision of Act

Method of calculating wages:
Continuous period of employment Wages
Preceding the accident
Not less than 12 months 1/12th of the payment in last 12 months
Less than 1 month a) Average monthly amount during 12 month earned by a workman on same work by same employer or
b) if there was no workman, then by a workman on same work in same locality
In other case where it is not possible to Total wages earned immediately calculate monthly wages preceding the accident/no of day * 30

Reports and Returns:
1. Commissioner may ask statement in the prescribed form within 30 days of notice about the opinion of employer whether he is or not liable to deposit compensation.
2. Employer is liable to report about fatal accidents and serious bodily injuries within 7 days of death or serious bodily injury.
3. SG may direct any employer to send a return specifying the number of injuries in respect of which compensation has been paid by employer during the previous year. STATUTORY COMPLIANCE CHECK LIST OF LABOUR LAWS FOR THE INDIAN INDUSTRY

CHECKLIST FOR SUBMISSION OF VARIOUS RETURNS-MONTHLY/ON OCCURRENCE
ACT TIME LIMIT FORM ETC. NAME OF RETURN/
COMPLIANCE TO BE SENT TO
The Apprenticeship Act,1961 Every month Printed Format 4 Rule 14(4) 1A, Report containing record of basic training etc. Rule 14(5&6) 3, Rule 14(7) 6, Rule 8 Bill for reimbursement within seven days of joining Apprentice. Report for the period ending March - 15th October ending Sept. - 15th October. To be sent in Nov. & May. Progress Report. Record of work done and the studies taken by Graduates, Technicians etc Apprenticeship Advisor, Regional Director/State Apprenticeship Advisor
The Contract Labour (R&A) Act, 1970 Within 15 days of commencement of completion of each contract VIB As per column 1 Concerned Authority under the Act
The Employees' State
Insurance Act, 1948 By the 21st of every month Challans Remittance of contributions Concerned Regional Office
The Employees' Provident
Funds & MP Act, 1952 By the 15th of every month Challans Remittance of contributions Concerned Regional Office
The Employees' Provident
Funds & MP Act, 1952 By the 25th of every month 5,10 & 12A Return of employees qualifying/ leaving & monthly remittance statement Concerned Regional Office
The Employees' State
Insurance Act, 1948 Fatal/Death or serious injury cases - Immediately & in ordinary cases - within 48 hrs. 16 Accident Report Concerned Local Office/ dispensary of ESI
The Factories Act, 1948 Forthwith on occurrence Refer to State Rules Notice of accident/ dangerous occurrence Inspector/Director of Factories
The Factories Act, 1948 Within 12 hours of occurrence Refer to State Rules Report of Accident Director/Inspector of Factories
The Workmen's
Compensation Act, 1923 Within 7 days of accident EE Report of serious bodily injuries/fatal accidents Concerned Commissioner of
Workmen's Compensation

PARAWISE CHECKLIST FOR SUBMISSION OF VARIOUS RETURNS
NAME OF THE STATUTE MONTH & DATE FORM NAME OF RETURN/
COMPLIANCE TO BE SENT TO
January
The Employments Exchanges(CNV) Act, 1959 & Rules By 15th of Jan ER-1 (Rule 6) Quarterly Return for quarter ended 31st Dec. previous year Local employment exchange
The Factories Act,1948 By 15th of Jan Refer to State Rules Annual Return Chief Inspector / Director or other
Competent authority of the area
The Maternity Benefit Act, 1961 By 21st of Jan LMNO
Rule 16(1) Annual Return and details of payment ending 31st December Competent Authority under the Act
The Contract Labour (R&A) Act, 1970 & Rules By 30th of Jan XXIV Rule 82 (1) Half yearly return by Contractor
(in duplicate) Concerned Licencing Officer
February
The Minimum Wages Act, 1948 By 1st of Feb III Rule 21 (4A) Annual Return Inspector under the area concerned
The Payment of Wages Act, 1948
1936 & related Mines Rules By 1st of Feb V Rule 18 (related Mines Rule)
VII, VIII Rule 16 related Air Transport Annual Return Concerned Labour Commissioner
Concerned Regional Commissioner
The Contract Labour (R&A)
Act, 1970 & Rules By 15th of Feb XXV
Rule 82(2) Annual Return by Principal Employer Concerned Regional Office
April
The Apprenticeship Act, 1961 By 15th of Apr APP-2 Half yearly return March ending Concerned Regional
Director/Apprenticeship Advisor
The Employment Exchanges
(CNV) Act, 1959 & Rules By 15th of Apr ER-1 Rule 6 Quarterly return for quarter ended 31 March Local Employment Exchange
The Employees' Funds & MP Act, 1952 By 25th of Apr 3A/6A Annual Return Concerned Regional Office
May
Employees' State Insurance
Act, 1948, Rules & Regulation By 12th of May 6
Sec.44
Regulation 26 Quadruplicate a/w challans
Monthly return a/w cheque Concerned local office or any
Schedule Bank
July
The Employment Exchanges
(CNV) Act, 1959 & Rules By 15th of Jul ER-1
Rule 6 Quarterly return for the
Quarterly ended June Concerned Employment Officer
The Factories Act, 1948 By 15th of Jul Refer to State Rules Half yearly return Concerned Director/Inspector
The Contract Labour (R&A) Act, 1970 By 30th of Jul XXIV Half yearly return by the contractor Concerned Inspector
October
The Apprenticeship Act, 1961 By 15th of Oct APP-2 Half yearly return Sept. ending Dy. Apprenticeship Advisor
The Employment Exchanges
(CNV) Act, 1959 & Rules By 15th of Oct ER-1
Rule 6 Quarterly return for the quarter ended September Concerned Employment Officer
The Contract Labour (R&A) Act,
1970 & Rules By 31st of Oct VII Rule 29(2)
Refer to State Rules Application for renewal of licence Renewal Fee Concerned Inspector
November
The Employees State Insurance Act,1948
By 12th of Nov 6
Sec.44
Regulation 25 Summary of contribution in quadruplicate a/w challans Concerned Local office
December
The Payment of Bonus Act,
1965 & Rules
By 30th of Dec D
Rule 5 Annual Return - within 30 days after the expiry of 8 months frm the close of the accounting year.

Concerned Inspector under the Act

Chapter – 4
LABOUR LAWS PREVAILING IN OTHER COUNTRIES

International labour law

1. Since the industrial revolution the labour movement has been concerned how economic globalisation would weaken the bargaining power of workers, as their employers could move to hire workers abroad without the protection of the labour standards at home. The International Labour Organization and the World Trade Organization have been the primary focus among international bodies to reform labour markets. Conflict of laws issues arise, determined by national courts, when people work in more than one country, and EU law has a growing body of rules regarding labour rights.

International Labour Organization

2. Following World War One, the Treaty of Versailles contained the first constitution of a new International Labour Organisation founded on the principle that "labour is not a commodity", and for the reason that "peace can be established only if it is based upon social justice". The primary role of the ILO has been to coordinate principles of international labour law by issuing Conventions, which codify labour laws on all matters. Members of the ILO can voluntarily adopt and ratify the conventions by enacting the rules in their domestic law.

3. The present constitution of the ILO comes from the Declaration of Philadelphia 1944, and under the Declaration on Fundamental Principles and Rights at Work 1998 classified eight conventions as core. Together these require freedom to join a union, bargain collectively and take action, abolition of forced labour, abolition labour by children before the end of compulsory school, and no discrimination at work. Compliance with the core Conventions is obligatory from the fact of membership, even if the country has not ratified the Convention in question. To ensure compliance, the ILO is limited to gathering evidence and reporting on member states' progress, so that publicity will put public and international pressure to reform the laws. Global reports on core standards are produced yearly, while individual reports on countries that have ratified other Conventions are compiled on a bi-annual or perhaps less frequent basis.

World Trade Organization

4. Because the ILOs enforcement and sanction mechanisms are weak, there has been significant discussion about incorporating labour standards in the World Trade Organisation's operation, since its formation in 1994. The WTO oversees, primarily, the General Agreement on Tariffs and Trade (GATT) which is a treaty aimed at reducing customs, tariffs and other barriers to free import and export of goods, services and capital between its 157 member countries. Unlike for the ILO, if the WTO rules on trade are contravened, member states who secure a judgment by the Dispute Settlement procedures (effective a judicial process) may retaliate through trade sanctions. This could include re-imposition of targeted tariffs against the non-compliant country. An explicit reference to core labour standards could allow action where a WTO member state is found to be in breach of ILO standards. Opponents argue that such an approach could backfire and undermine labour rights, as a country's industries, and therefore its workforce, are necessarily harmed but without any guarantee that labour reform would take place.

Workers in multiple countries

5. Labour standards applied by the ILO and the WTO seeks to balance standards with free movement of capital globally, conflicts of laws (or private international law) issues arise where workers move from home to go abroad. If a worker from America performs part of her job in Brazil, China and Denmark (a "traveling" worker) or if a worker is engaged in Ecuador to work as an expatriate abroad in France, an employer may seek to characterise the contract of employment as being governed by the law of the country where labour rights are least favourable to the worker, or seek to argue that the most favourable system of labour rights does not apply.

6. Under the EU Rome I Regulation, workers will have employment rights of the country where they habitually work. But exceptionally they may have a claim in another country if they can establish a close connection to it. The Regulation emphasises that the rules should be applied with the purpose of protecting the worker. It is also necessary that a court has jurisdiction to hear a claim. Under the Brussels I Regulation article this requires the worker habitually works in the place where the claim is brought, or is engaged there.

National labour law across the world

British labour law

7. The Factory Acts (first one in 1802, then 1833) and the 1832 Master and Servant Act were the first laws regulating labour relations in the United Kingdom. The vast majority of employment law before 1960 was based upon the Law of Contract. Since then there has been a significant expansion primarily due to the "equality movement” and the European Union. There are three sources of Law: Acts of Parliament called Statutes, Statutory Regulations (made by a Secretary of State under an Act of Parliament) and Case Law (developed by various Courts).

8. The first significant modern day Employment Law Act was the Equal Pay Act of 1970 although as it was a somewhat radical concept it did not come into effect until 1972. This act was introduced as part of a concerted effort to bring about equality for women in the workplace. Since the election of the Labour Government in 1997, there have been many changes in UK employment law. These include enhanced maternity and paternity rights, the introduction of a National Minimum Wage and the Working Time Directive which covers working time, rest breaks and the right to paid annual leave. Discrimination law has also been tightened, with protection from discrimination now available on the grounds of age, religion or belief and sexual orientation as well as gender, race and disability.

United States labor law

9. The Fair Labor Standards Act of 1938 set the maximum standard work week to 44 hours, and in 1950 this was reduced to 40 hours. A green card entitles legal immigrants to work just like US citizens, without requirement of work permits. These high-hour ceilings, combined with a competitive job market, often motivate American workers to work more hours than required. American workers consistently take fewer vacation days than their European counterparts and on average take the fewest days off of any developed country.

10. The Fifth and Fourteenth Amendments of the United States Constitution limit the power of the federal and state governments to discriminate. The private sector is not directly constrained by the Constitution, but several laws, particularly the Civil Rights Act of 1964, limit the ability of the private sector to discriminate against certain classes in employment.

11. The Age Discrimination in Employment Act of 1967 prohibits employment discrimination based on age with respect to employees 40 years of age or older. This Act was created to promote employment of older persons based on their ability rather than age; to prohibit arbitrary age discrimination in employment; to help employers and workers find ways of meeting problems arising from the impact of age on employment because in the face of rising productivity and affluence, older workers find themselves disadvantaged in their efforts to retain employment, and especially to regain employment when displaced from jobs.

12. Title VII of the Civil Rights Act of 1991 is the principal federal statute with regard to employment discrimination prohibiting unlawful employment discrimination by public and private employers, labour organizations, training programmes and employment agencies based on race or colour, religion, sex, and national origin.

13. The National Labor Relations Act, enacted in 1935 as part of the New Deal legislation, guarantees workers the right to form unions and engage in collective bargaining. This legislation and its subsequent amendments are also key elements of U.S. labour law.

European Labour Law - Treaty on the Functioning of the European Union

14. The Treaty on the Functioning of the European Union (deriving from the Treaty of Rome) lists in article 153(1) the European Union's competence in the field of labour law. What is conspicuously not included is unjust dismissal of workers, and according to article 153(5) "pay, the right of association, the right to strike or the right to impose lock-outs". As it says, "the Union shall support and complement the activities of the Member States in the following fields:"
(a) Improvement in particular of the working environment to protect workers' health and safety.
(b) Working conditions.
(c) Social security and social protection of workers.
(d) Protection of workers where their employment contract is terminated.
(e) The information and consultation of workers.
(f) Representation and collective defence of the interests of workers and employers, including co-determination.
(g) Conditions of employment for third-country nationals legally residing in Union territory.
(h) The integration of persons excluded from the labour market, without prejudice to Article 166.
(i) Equality between men and women with regard to labour market opportunities and treatment at work.
(j) The combating of social exclusion.
(k) The modernisation of social protection systems without prejudice to point (c).

15. The objectives draw, according to TFEU article 151, inspiration from a number of other treaties and sources, which in turn draw inspiration from the International Labour Organisation and the Versailles Treaty.

Chinese labour law

16. Labour Law in the People's Republic of China has become a very hot issue with the soaring numbers of factories and the fast pace of urbanization. The basic labour laws are the Labour Law of People's Republic of China (promulgated on 5 July 1994) and the Law of the People's Republic of China on Employment Contracts (Adopted at the 28th Session of the Standing Committee of the 10th National People's Congress on June 29, 2007, Effective from January 1, 2008). The administrative regulations enacted by the State Council, the ministerial rules and the judicial explanations of the Supreme People's Court stipulate detailed rules concerning the various aspects of the employment relationship. Labour Union in China is controlled by the government through the All China Federation of Trade Unions, which is also the sole legal labour union in Mainland China. Strike is formally legal, but in fact is discouraged.

Japanese Labour Law – Labour Standard Act-1947

17. The Labor Standards Act is a Japanese law. It was enacted on 7 April 1947 to govern working conditions in Japan. According to Article 1 of the Act, its goal is to ensure that "Working conditions shall be those which should meet the needs of workers who live lives worthy of human beings”.

18. After being passed in 1947, The Labor Standards Act was amended in numerous occasions till 2003. The law consists of 13 chapters and supplementary provisions:-

(a) Chapter 1 General Provisions (Articles 1-12)
(b) Chapter 2 Labor Contract (Articles 13-23)
(c) Chapter 3 Wages (Articles 24-31)
(d) Chapter 4 Working Hours, Rest Periods, Rest Days, and Annual Paid Leave (Articles 32-41)
(e) Chapter 5 Safety and Health (Articles 42-55)
(f) Chapter 6 Juveniles (Articles 56-64)
(g) Chapter 6-7 Women (Articles 64-2-68)
(h) Chapter 7 Training of Skilled Laborers (Articles 69-74)
(i) Chapter 8 Accident Compensation (Articles 75-88)
(j) Chapter 9 Rules of Employment (Articles 89-93)
(i) Articles 89 and 90 cover Work rules[4]
(k) Chapter 10 Dormitories (Articles 94-96-3)
(l) Chapter 11 Inspection bodies (Articles 97-105)
(m) Chapter 12 Miscellaneous Provisions (Articles 105-2-116)
(n) Chapter 13 Penal Provisions (Articles 117-121)
(o) Supplementary Provisions

Mexican labour law

19. Mexican labour law governs the process by which workers in Mexico may organize labour unions, engage in collective bargaining, and strike. Current labour law reflects the historic interrelation between the state and the Confederation of Mexican Workers, the labour confederation officially aligned with the Institutional Revolutionary Party (the Institutional Revolutionary Party, or PRI), which ruled Mexico under various names for more than seventy years. While the law, on its face, promises workers the right to strike and to organize, in practice it makes it difficult or impossible for independent unions to organize while condoning the corrupt practices of many existing unions and the employers with which they deal.

Chapter – 5
DATA ANALYSIS & INTERPRETATION

International comparison of Indian labor laws (China & USA)

The Labour Regulation Index (‘LRI’): The Centre for Business Research at the University of Cambridge

1. The Centre for Business Research at the University of Cambridge, has developed a Labour Regulation Index (LRI) covering changes in the law of a number of developed and developing countries for the period 1970-2006. India is one of the countries in this index.

2. The LRI consists of 40 indicators grouped into five areas of labour law regulation: the law governing the choice of alternative forms of the employment contract (dependent versus contract labour, part time work, fixed-term employment, and agency work); working time; dismissal; employee representation; and industrial action.

3. The LRI, as originally constructed, contained data on five countries: France, Germany, India, the United Kingdom and the United States. These countries were chosen because they represent three ‘parent’ systems in the sense identified by the legal origins theory of La Porta et al. (2008), that is, countries whose legal systems were not derived or imported from a model initially developed elsewhere (France, Germany and the UK), and two other countries, the USA and India, whose different stages of economic development made them contrasting cases for the study of the evolution of legal rules (Deakin et al., 2007; Armour et al., 2009b).

4. Figure 1 indicates the broad trend in the evolution of Indian labour law over the period 1970 to 2006 by comparison with those in the four other countries coded by Deakin et al. (2007). The Figure indicates the movement in the average totals (out of 40) for each country over the period of the study. It can be seen that India’s labour regulation is highly protective by international standards. At the outset of the period in the early 1970s, it was comparable to that in France, and above those of the other three countries (considerably so in the case of the USA). Over time, there was some moderate strengthening of worker protection in the Indian case, while that in Germany fell slightly, and that in France rose.

5. Figure 2 represents the scores for the sub-index on dismissal protection. Here, India appears as having the most protective score of all the five countries. In so far as India has a system of labour regulation that is pro-worker by reference to international comparisons, the effect is largely due to its laws on termination of employment.

6. Figure 3 makes the same point in a different way: if we break down the Indian scores by referenced to the individual sub-indices, the sub-index on dismissal protection scores more highly than any of the others.

7. Indian labour law provides limited flexibility for employers in the choice of alternative employment relationships, placing limits on the use of fixed-term contracts and regulating agency work. Working time is subject to formal controls on daily working hours which are protective by international standards and sets high premia for overtime work, but fewer controls on the number of overtime hours that may be worked. The Indian constitution provides few guarantees in relation to employee representation or the right to strike, but more specific legislation is supportive of the right to strike, permitting forms of secondary or sympathy strike action, and the extension of terms and conditions set out in collective agreements. In each of these areas, Indian labour law is not the outlier which is in respect of parts of dismissal law, but a general tendency towards worker protection is confirmed.

8. The LRI provides a quantitative basis for understanding certain features of Indian labour law in a global, comparative context. The coding method used highlights the strongly pro-worker orientation of dismissal regulation in India, by comparison even to countries which a longer history of industrialisation and with strong labour law traditions, such as France and Germany. Indian labour law has been consistently more protective of worker interests than that of its ‘parent’ system, the UK.

Present Scenario - India

Enforcement under Factories Act, 1948

9. The state government is designated as the chief administrative authority with regard to the Factories Act. The state government ensures the enforcement of the provisions of the Act through the Inspectorate of Factories. Contrary to popular belief, data on factory inspection shows that a large majority of the factories do not have a visit from the factories inspector every year and over the years the inspection rate in the factories sector has declined considerably. The proportion of factories not inspected has been on the rise in the recent period.

10. Though there are some data gaps, one can still infer that the enforcement of the provisions of the Factories Act has slackened in recent years, through a relative decline in the inspection rate of factories.

Industrial Relations: Strikes and Lockouts

11. The industrial relations in India are governed under the Industrial Disputes Act, 1947. That the labour market is flexible enough to accept the terms and conditions laid down by employers and that the labour, in general, has been docile is evident from the fact that both the number of industrial disputes and the number of days of work lost due to industrial strike has fallen in absolute terms over the years, more so since the 1990s.

12. It is evident from the figure, while there has been a decline in the total number of strikes and lockouts over the years, the share of strikes in total disputes has exhibited a fall, while the share of lockouts in total disputes has shored up. This indicates a general weakening of the power of workers vis-à-vis the employers.

13. Comparing the percentage distribution of workdays lost due to strikes and lockouts, the share of workdays lost due to lockouts has been higher than that for strikes since the nineties, signalling a shift in power equations with employer offensive attaining new heights and declining bargaining power of organised labour. This is also evident from the following figure:-

Changing Nature of Employment: Casualisation of the Work Force

14. There has been growing contractualisation of industrial labour in India. There has occurred a casualisation of the organised manufacturing sector itself with greater use of subcontracting and increasing employment of contract and temporary workers. Workers employed through contractor (hereafter, contract workers) as percentage of total workers employed in organized manufacturing has increased from about 16 percent in 1998-99 to 29 percent in 2005-06 and then to around 33 percent in 2009-2010. This estimate is based on Annual Survey of Industries (ASI) data.

15. This shows that despite the existence of labour laws like the Contract Labour Act, contractualisation or casualisation of labour has already occurred significantly, as far as the Indian labour market is concerned. In other words, manufacturing industries have already achieved substantial labour market flexibility through increase in the share of non-permanent workers in total employment.

Distribution of Wages and Profits

16. The distribution between wages and profits is not merely an issue of cost composition. It basically reflects the distribution of value added or output between social classes. Figure shows how the labour in the organised manufacturing sector lost their share in the net value added in the past two decades. There is a sharp rise in the profit share in net value-added and this skewed distribution in favour of profit incomes amply reflects the freedom already enjoyed by the capitalists in our country in squeezing the claims of the working class.

Chapter – 6
CONCLUSION & RECOMMENDATION

17. The first National Labour Commission 1929, had promised lot in the direction of social security, social welfare, wages, social insurance, industrial relations, industrial adjudication, collective bargaining etc,. In sequel to the recommendations made in the report of the first national commission on labour series of labour enactments were passed.

18. When the Government of India appointed the second National Labour Commission, this aspect of capital-labour relations, especially the deteriorating industrial income distribution, was thoroughly ignored. After the gap of almost 72 years the Second National Labour Commission has been constituted and submitted its report in the year 2002 to the Government of India. At the outset the terms of reference to the commission are as under:-

(a) To suggest rationalisation of existing laws relating to labour in the organised sector

(b) To suggest an umbrella legislation for ensuring a minimum level of protection to the workers in the unorganised sector.

19. The Commission in its 2700 pages long report inter-alia has stressed on a lot of issues and has suggested recommendations along-with 7 draft bills so that the concerned Ministry should not sit over the drafting exercise.

20. The various amendments proposed through the bills include :- Amendments in The Industrial Disputes Act, Payment of Bonus Act, Contact Labour Act, Workmen’s Compensation Act and Payment of Wages Act which are all pending before the Rajya Sabha for approval, after having been passed by the Lok Sabha*.

21. After various announcements of cabinet approvals of liberalisation of the labour law environment through significant amendments in the Contract Labour Act (easing outsourcing), and the Industrial Disputes Act (easing retrenchment), when the text of these bills became available, it was with great excitement that one waded through the text of the bills.

22. What is interesting is that, as is evident from the Enforcement under Factories Act 1948 at Para 9, Chapter-5 above, is the rate of inspection under the Factories Act had been going down even before schemes like self-certification and system of joint inspections came in. And these much talked about schemes appear to be a kind of de jure official recognition of the de facto laxity in the inspection process that has been prevailing in the neo-liberal era.

23. A proposed amendment to the Factory Act has to be considered sooner or later to ensure compliance and strict adherence to Labour laws in India.

*Note: The Payment of Wages (Amendment) Act, 2005 (41 of 2005) incorporating the changes (recommendations in the bill) had come into effect on the 9th of November, 2005. As of March 2007, none of the other acts had been applied. Chapter – 6
BIBLIOGRAPHY

1. www.csdd.info/CSDDCorporateCompliancePlan2-12.pdf

2. www.erlaws.com/library/amendments.htm

3. http://www.erlaws.com/library/nlcrshivaji.htm

4. www.cci.in/pdf/Regulatory-Compliance-India.pdf

5. cifo.in/uploads/28002157-Introduction-to-Indian-Labour-Laws.pdf

6. www.ritsumei.ac.jp/acd/cg/law/lex/rlr20/Manfred101.pdf

7. interlaw.org/.../Interlaw-2011-EMEA-Employment-SBT-Comparative-Law-Resource1.pdf

8. www.dol.gov/compliance/guide/

9. www.dol.gov › Compliance Assistance › By Law

10. www.ilo.org/wcmsp5/groups/public/---.../wcms_193511.pdf

11. xa.yimg.com/kq/groups/21451086/975326082/.../llbook1022.pdf

12. www.labourlawresearch.net/Workplace and Corporate Law Research Group/THE EVOLUTION OF LABOUR LAW IN INDIA - WCLRG working paper 18-1.pdf

13. http://www.citehr.com/429588-labour-laws-compliance.html#post1942633

14. http://www.citehr.com/332669-hr-services-training-including-hr-labour-law-compliance-audit.html#post1523549

15. www.networkideas.org/featart/aug2012/Praveen_Jha.pdf

16. http://www.cbr.cam.ac.uk/pdf/WPfourtwoeight.pdf

17. http://en.wikipedia.org/wiki/Labour_law
(b) Labour_in_India
(c) Japanese_employment_law/Labor_Standards_Act_of_1947
(d) Mexican_labor_law

Similar Documents

Premium Essay

Corporate Compliance of Labour Law

...Dr. Iragaravarapu Sridhar CCBMDO Batch: 09 Perspectives of Law and Business Assignment December 16, 2012 CORPORATE COMPLIANCE OF LABOUR LAWS INDEX PAGE No Cover Page with Contents 1 Introduction 2 Conceptual Discussions 3 Implementation of Labour Laws 6 Labour Laws Prevailing in Other Countries 26 Data Analysis & Interpretation 32 Conclusion & Recommendation 38 Bibliography 40 Chapter – 1 INTRODUCTION 1. Labour law also known as employment law is a body of laws, administrative rulings and precedents which address the legal rights of, and restrictions on, working people and their organisations. It mediates many aspects of the relationship between trade unions, employers and employees. In brief, Labour law defines the rights and obligations as workers, union members and employers in the workplace. Generally Labour law covers:- (a) Industrial Relations – Certification of Unions, Labour-management relations, collective bargaining and unfair labour practices (b) Workplace health and safety (c) Employment standards, including general holidays, annual leave, working hours, unfair dismissal, minimum wage, layoff procedures and severance pay. 2. There are two broad categories of Labour law. First, collective labour law relating to the tripartite relationship between employee, employer and union. Second, individual labour law concerning employees’ rights at work and through contract of work. 3. Once an investor...

Words: 9986 - Pages: 40

Premium Essay

Termpaper

...Garment Factory Compliance • Home • About • Top of Form [pic][pic] Bottom of Form [pic]Indian Textile Industry and Garment Exports November 28, 2012 Disha Leave a comment The Indian textile industry is one of the largest industries in the world, with a huge raw material and textile manufacturing base. The industry occupies a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products. This large and ancient industry has carved out a special niche for itself as a facilitator of the county’s economic growth and participative development. Textile industry in India is a highly versatile sector, with smaller firms providing flexibility needed for smaller orders; the larger firms have the capacity to service the world’s biggest buyers. The Government of India has also undertaken several favourable policy initiatives, which have resulted in the growth of the sector. “Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the country’s gross domestic product (GDP) and 16.63 per cent to export earnings,” as per Ministry of Commerce and Trade, India. Major destination for Indian garment exports The USA is the number one destination for the exports of Indian apparels. During 2011, the garment imports to the USA from world were around US$ 81.51 billion. India exports garments of worth US$ 3.53 billion to the USA, which accounts for 4.33 per cent share in the USA’s total...

Words: 18280 - Pages: 74

Free Essay

Labour Law

...Training on Bangladesh Labor Law Application Course on Bangladesh Labor Law [ACBLL] Date: November 07-December 13, 2014 Day: Friday & Saturday of Every week Time: 6.00 pm to 9.00 pm Registration deadline: November 03, 2014 Venue: WINGS Centre, Dhanmondi, Dhaka. OUR UNIQUENESS Role Play & Activities Whole training will be conducted based on Role Play, Case Study, Self activity, hands on exercise, experiential learning, group work etc. Professional Panel There will be some panel discussion session along with renowned Labor Law practitioners in the country for achieving updated knowledge on different aspects of Labor Law. TRAINING OVERVIEW Outcome of the Program: After successful completion of the program, the participants will be able to do all operational activities of HR as well as will know the practical HR practices in context of Bangladesh.  Understand the changes in amendment law 2013  Use the practical knowledge to implement different sections of labor law  To conduct Factory Audit in line with BLL 2006 [amendment 2013]  To prepare Factory for any kind of Social Audit in line with BLL 2006 [amendment 2013]  To handle employee relations, grievances, disciplinary issues, accurate settlement under the guidance of BLL 2006 [amendment 2013]  Make Trade Union & deal with CBA  Understand WPPF calculation, entitlement, distribution & investment Target Participants  HR Professionals  Compliance Professionals  Potential...

Words: 678 - Pages: 3

Premium Essay

Csr Comapny Details

...387 From supply chains to value chains: A spotlight on CSR Malika Bhandarkar and Tarcisio Alvarez-Rivero* 1. Introduction Corporate social responsibility (CSR)1 has become a hot topic in boardrooms across the world. Changes in corporate value systems are being driven by pressures from different actors, including governments, consumers, non-governmental organizations (NGOs) and institutional investors (diagram 1). Multinational corporations (MNCs) have operations spread across the globe, relying on both foreign affiliates and arm’s-length suppliers arrayed along global supply chains, many of which encompass developing countries. What then does the growing CSR movement mean for developing country producers? The chapter addresses this question. Diagram 1 Institutional Investor Tier I Tier II Tie r III NonGovernmental Organization Multinational Corporation Supply Chain, consisting of: Consumer Government CSR has relevance to many facets of a corporation’s operations. Strong CSR policies can help to recruit the right people for the job, keep attrition rates low by promoting a “feel good” quotient, improve corporate image, prepare for future regulation, empower “soft” laws (Vogel, 2005, p.162), appease green customers, and convince institutional investors that the corporation is following sustainable practices that positively impact the bottom line. * Policy Integration and Analysis Branch, Division for Sustainable Development, UNDESA...

Words: 8922 - Pages: 36

Premium Essay

Nike Dilemmas

...Nike Dilemma: Still waiting for them to "do it"! Another corporate giant having its fare share of controversies over the years is Nike. Nike employs approximately 26,000 people worldwide. In addition, approximately 650,000 workers are employed in Nike contracted factories around the globe. More than 75% of these work in Asia, predominantly in China, Thailand, Indonesia, Vietnam, Korea and Malaysia (Nike 2006). In 1998 Nike came under fire for the sweatshop conditions of the workers in the Nike factories in China and other third world countries. The evidence showed that the workers were regularly subject to physical punishment and sexual abuse and exposed to dangerous chemicals. (Nike Accused of Lying About Asian Factories 1998). Sub standard working facilities, bare minimum wages and risks to health of labourers mark NIKE factories in Asia. The firm was also accused of practicing child labour in Pakistan. So the question now is, why did it happen, and more importantly, has anything been done since to correct it. So why did it happen? Well that is quite clear. The reason why most firms outsource their activities to lesser developed countries is to exploit cheaper labour and production costs. Nike has a brand reputation worldwide, and in-fact is a market leader in the sales of athletic shoes. The constant focus is to formulate ways and strategies to reduce production costs, and one way of that is fewer wages to the workers. The high unemployment levels in the third world countries...

Words: 1725 - Pages: 7

Free Essay

International Business Responysibilit

...Rights, Responsibilities and Regulation of International Business Sol Picciotto* This essay discusses the paradox of the emergence of corporate codes of conduct in the 1990s, following pressures from consumer and labor activism, in a period of more general liberalization of international investment leading to deregulation. It suggests that the advantages of flexibility and adaptability to specific circumstances offered by such codes are counterbalanced by their self-selected content and inadequate enforcement. Rejecting the assumption that there is a sharp distinction between voluntary standards and binding law, the essay analyzes various ways of grounding codes in legal obligations. It proposes that a safer and more dependable environment for international investment could be provided by a framework agreement, which would link binding standards for corporate social responsibility in key areas, such as combating bribery and cooperation in tax enforcement, with traditional investor rights based on investor protection and liberalization rules. I. Introduction Over the past decade, there has been an intriguing dual movement in the development of the forms of regulation of business in the global economy. Since the 1980s the dominant trend has been liberalization, i.e., the relaxation or removal of national controls on international capital movements. It seemed to many that business firms and investors were close to attaining the goal of a world market...

Words: 9631 - Pages: 39

Free Essay

Global Labour Fairness

...Essay based on the issue of sweatshop labour conditions in the global supply factory system. It is no secret that millions, if not billions of people around the world suffer dangerous and abusive work conditions in the global supply factory system. Since the emergence of the global economy, multi national corporations have been able to reap in large profits while keeping their prices low for consumers, in part, by taking advantage of cheap outsourced labour. The dark side of the global market is the severe exploitation of sweatshop labour conditions such as, child labour, poor health and safety standards, indentured servitude, sexual harassment and abuse, excessive overtime and under compensation. National and International labour standards do exist, the problem is that many countries where global supplier factories are located are either unable or unwilling to enforce labour laws for one reason or another. Thus, because governments in certain countries around the world do not enforce decent labour standards, multi nationals have been able to take advantage of cheap labour without many repercussions. Corporate citizenship or social responsibility has become a very important business practice for many companies. Civil society groups and consumers are now becoming much more adamant on the issue of corporate social responsibility and global fair labour. Multi national corporations, in the past, have been focused only on one objective, profit. With the increased pressure from...

Words: 1455 - Pages: 6

Premium Essay

Codes of Conduct, Csr H&M and Bmw

...CODES OF CONDUCT AND CSR of H&M, BMW Corporate Social Responsibility - has become very important in recent years  today more and more customers, employees, and the general public are demanding information about whether companies are meeting acceptable standards. ! Essential for the success of a company to act in compliance with the law.  economic globalization brought high complexity of legal regulations  increase the risk of laws being broken.  potential damage to reputation  Publicity spreads fast through communication channels. (Internet! Out of control) - by being corporate responsible a company can gain a high competitive advantage: - externally through company’s clean and good reputation - internally through employee engagement •Integration of sustainability throughout the entire value chain  creating an added value for the company, the environment and society  definition from the European Commission states CSR as a “concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their Stakeholders on a voluntary basis.” 6 multinational companies, by doing our research we saw that codes of conduct are really similar in all of them H&M •“CONSCIOUS” – principles Provide fashion for conscious customers - Offering conscious collections that combine fashion and sustainability Choose and reward responsible partners - Teaming up with NGOs - Promoting better working conditions: training of over 400...

Words: 506 - Pages: 3

Premium Essay

Icsi a Profile

.......................................... 1 Vision and Mission and definition of Corporate Governance ............................ 2 Introduction..................................................................................................... 3 ICSI Map ......................................................................................................... 4 Objectives and Functions ................................................................................. 5 Council and its Committees and Organisation Structure of the ICSI .................. 6 Role of Company Secretary.............................................................................. 7 Career Path.....................................................................................................11 ICSI at your Desktop.......................................................................................13 10. Company Secretary Management Information Center ...................................14 11. Professional Development and Continuing Education .....................................16 12. Publications ....................................................................................................18 13. Memorandum of Understanding (MOU) .........................................................19 14. ICSI's Major Initiatives in Corporate Governance ............................................ 21 15. Centre for Corporate Governance ................................................................. 22...

Words: 8537 - Pages: 35

Premium Essay

Hr Compliance

...WHITEPAPER ON GLOBAL WORKFORCE COMPLIANCE. -Under the guidance of Faculty -Dr.Prof.Savita G.R (Asst.Prof.HR -Prin Welingkar Institute Of Management and Research, Bangalore) By: Ankita Shrivastava Student Of E-business We School,bangalore WHITEPAPER ON GLOBAL WORKFORCE COMPLIANCE- EXECUTIVE SUMMARY: Organizations are expanding at a great pace today. Mergers and Acquisitions have also increased many folds. With this there is the need for organizations to maintain a checklist of statutory, legal, business and domain specific compliances. Statutory compliances mainly includes compliance to minimum wages, ESI Act, PF Act, Apprentices Act, Contract labour Regulation and Abolition act, Industrial disputes Act, Payment of gratuity act, Equal Remuneration Act, Employee State remuneration act etc. At the organizational level, domain based compliances are also important. With organizations looking into more of mergers and acquisitions, the role of human resources is very vital to manage the cultural and language barriers. With this the objective of this paper is to throw light on various compliances to be ensured at the statutory level, role based and domain based level. OUTCOME: The outcome of this project is a recommended framework for Global HR Compliance with respect to legal, statutory regulations, employee leave management systems, role based compliance , organizational compliance and domain based compliances for any business during global expansions...

Words: 3507 - Pages: 15

Premium Essay

The History of Human Resource Management

...immigrants, recruitment and management of individuals gained vitality. Managers were higher than the employees. This system created a gap between the labour force and the management. Social welfare approached in the early HRM helped the immigrants to get adjusted to their jobs and to 'American' way of life. The programs was assigned to ensured an increase in productivity. In the 1790s, employees empower considerably and increased at a quick pace .In the 1800s and 1900s the advent of Labour Union led HR department more capable in politics and diplomacy. HR department has management, labour unions, and Frederick W. Taylor's (1856-1915) theory of 'Scientific Management'. In 1902, National Cash Register was formed to handle employee grievances, record keeping, wage management and other employee-related functions. In 1913, the US Department of Labour promoted the welfare of employees. In 1920s and 30s, the impact of the Hawthorne studies enhanced the physical work conditions for employees changes from workers' efficiency to efficiency through work satisfaction. In 1938, the Fair Labour Standards Act provided security and helped increased the standard of the employees. Since then, the welfare of workers have more new and efficient laws. Therefore, human relations became a prominent feature of organizational behaviour. The National Labour...

Words: 522 - Pages: 3

Premium Essay

Assignment

...Chapter 2 Corporate Social Responsibility, Corporate Governance and Corporate Regulation 2.1 Introduction CSR is increasingly an essential issue for companies.1 It is a complex and multidimensional organisational phenomenon that is understood as the scope for which, and the ways in which, an organisation is consciously responsible for its actions and non-actions and their impact on its stakeholders. It represents not just a change to the commercial setting in which individual companies operates, but also a pragmatic response of a company to its consumers and society.2 It is increasingly being understood as a means by which companies may endeavour to achieve a balance between their efforts to generate profits and the societies that they impact in these efforts.3 This chapter discusses these issues. First, it describes CSR and its core principles. Second, it describes CG and narrates CG’s convergence with CSR. Third, it highlights how different economies are incorporating CSR notions in their corporate regulation. 1 Jeremy Moon and David Vogel, ‘Corporate Social Responsibility, Government, and Civil Society’ in Andrew Crane et al. (eds), Oxford Handbook of Corporate Social Responsibility (2008) 303; David Vogel, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility (2005); Nada K Kakabadse, Cecile Rozuel and Linda Lee-Davies, ‘Corporate Social Responsibility and Stakeholder Approach: A Conceptual Review’ (2005) 1(4) International ...

Words: 16989 - Pages: 68

Premium Essay

Operations Notes

...OPERATIONS Role of operations management Strategic role of operations Operations management is an essential key business function that overlaps with the other business functions such as marketing, finance and human resources management. Strategic means ‘affecting all key business areas’; that is, the strategic role of operations management involves operations managers contributing to the strategic plan of the business. Some of the different costs in the operations function include; input costs, labour costs, processing costs, inventory costs and quality management costs. Cost leadership involves aiming to have the lowest costs or to be the most price-competitive in the market. A key aspect to cost leadership is that although trading with the lowest cost, the overall business should still be profitable. One aspect of cost leadership arises from a business creating economies of scale. Economies of scale refers to cost advantages that can be created as a result of an increase in scale of business operations. Typically the cost savings come from being able to purchase lower cost per unit and from efficiencies created through improved use of technology and machinery. Goods/services differentiation is a key strategy applied by operations managers. Product differentiation means distinguishing products in some way from its competitors. Ways a product could be differentiated include: varying the actual product features, varying product quality, varying any improved features, varying...

Words: 3838 - Pages: 16

Premium Essay

Eassy

... To make this transmission smooth and attractive for all stakeholders, it’s important that everyone plays by the rules. So, the rules have to be well defined and the interests of all stakeholders adequately protected. Stock markets in India are regulated and monitored by the Securities and Exchange Board of India (SEBI). Its mandate is to work for the betterment of the market and protect investors’ interest. SEBI constantly works towards improving the rules and laws governing the stock markets and this year was no different. It made several changes in areas such as compliance by listed companies, improving the quality and presentation of information for investors at the time of public issues, and making the grievance redressal system more investor friendly. However, the most important change of the year was the passage of The Companies Act, 2013, which will bring in significant changes in the way companies function and is likely to better protect the interest of shareholders. Among other things, the new law provides details for the buyout of the minority shareholders and simplifies the rules for mergers. The most notable idea of the Act is the provision for class action suit. Shareholders and depositors in a company can now hold the management accountable in case of wrongdoing. Shareholders can claim damages from the company and its directors for any unlawful or wrongful act on their part. Further to this, auditors, too, can be held responsible for misleading and improper...

Words: 3885 - Pages: 16

Premium Essay

Resume for Company Secretary

...field of Commerce, Sociology, Law and Company Secretary. Confident to prove myself as a valuable asset to the company by rendering highly qualified professional services. Good listening, communication and interpersonal skills. QUALIFICATIONS § § § § Associate Company Secretary from ICSI – 2009 (qualified in August 2008) LL.B - 2007 M.A. (Sociology) – 2005 B. Com. (with Computer Application) – 2003 MAJOR ASSIGNMENT HANDLED • • • • • • • • • • • • • • • • Drafting of Petition(s) Affidavit(s), Scheme of Arrangement, Form of Proxy, and other related documents for the Merger/ Amalgamation. Handled all the Secretarial aspects of the Merger Drafting and Vetting Hearing submissions, Post hearing Submissions, Rebuttals and various other documents pertaining to International Arbitration. Extensive research work on foreign laws like New York Law, Austrian Law, North Carolina Laws, Delaware Law pertaining To Merger and Amalgamation, Contract Law, Arbitration Law, Company Law Detail study of Tanzania Company Law, South Africa Company Law and Ghana Company Law Pertaining to opening of Branch office by a Foreign Company. Drafting of Opinion on various issues relating to Managerial Remuneration and filing application thereto. Drafting of Opinion on various issues relating to Provisions of write off of export proceeds under RBI circular and FEMA regulations Passing of resolution by way of postal ballot under section 192A of the Act. Prep. of Corporate Governance Report and Directors...

Words: 1199 - Pages: 5