Statutory Compliances Applicable under Labour Laws in India | Mandatory & Optional Laws for Labours

Summary

This video provides an overview of major labor laws in India that every employee should be aware of. Key topics include the Employee Provident Fund (EPF), Employee State Insurance (ESI), Minimum Wages Act, Maternity Benefit Act, Gratuity Act, and others. The laws aim to improve employer-employee relations, ensure fair wages, provide job security, and protect workers' rights. The video emphasizes the importance of understanding these laws to ensure compliance and better working conditions, from wage payments to workplace safety, and highlights the benefits employees are entitled to under these regulations.

Takeaways

• 😀 Labor laws in India aim to improve the relationship between employees and employers, reduce industrial disputes, and minimize labor unrest.
• 😀 Since 1926, labor laws in India have expanded from state-level to federal and central-level laws, with stricter enforcement over time.
• 😀 Labor laws ensure job security and provide regulations on working hours, overtime pay, and other workplace rights for employees.
• 😀 Major labor laws include the Trade Union Act, Industrial Employment Act, Payment of Wages Act, Factory Act, and Maternity Benefit Act.
• 😀 The Employees' Provident Fund (EPF) requires contributions from both employees and employers. It's mandatory for establishments with 20 or more employees.
• 😀 Employees earning a salary below ₹15,000 per month must contribute to EPF, while employees earning more than ₹15,000 may contribute voluntarily with mutual consent.
• 😀 The Employees' State Insurance (ESI) Act provides medical care and accident insurance to employees earning below ₹21,000 per month, with contributions from both employees and employers.
• 😀 The Payment of Wages Act mandates that employees must receive their salary by the 7th day of each month and prohibits unnecessary deductions from wages.
• 😀 The Equal Remuneration Act ensures that male and female employees performing the same work should be paid equally, preventing gender-based wage discrimination.
• 😀 The Minimum Wages Act ensures that employees are paid at least the minimum wage, with rates varying by state and type of work.
• 😀 The Bonus Act requires employers with more than 20 employees to pay a statutory bonus, based on company profits, ranging from 8.33% to 20% of the employee's salary.
• 😀 The Gratuity Act ensures that employees who have worked for more than five years in an organization are entitled to a gratuity payment upon leaving or retiring.
• 😀 The Shops and Establishments Act protects employees' rights in terms of working hours, holidays, paid leaves, and safe working conditions across all types of establishments.

Q & A

What are labor laws in India and why are they important?

Labor laws in India are legal acts that regulate the relationship between employers and employees. They are essential because they improve employer-employee relations, reduce industrial disputes, ensure job security, and protect workers' rights. They also regulate working hours, wages, and conditions, minimizing labor unrest.

What is the history of labor laws in India?

Labor laws in India evolved over time, starting at the state level in the 1920s, moving to federal level between 1950 and 1980, and now being strictly enforced at the central level as well. Before 1926, no specific laws existed.

What is the significance of labor laws in reducing industrial disputes?

Labor laws are crucial in reducing industrial disputes by establishing clear guidelines for employer-employee relations, ensuring fair wages, working conditions, and resolving conflicts. They also provide a legal framework for handling strikes, layoffs, and other industrial issues.

What is the 'Payment of Wages Act' and what does it regulate?

The 'Payment of Wages Act' ensures that employees receive their wages on time, specifically before the 7th of each month. It also prohibits unnecessary deductions from wages, allowing only lawful deductions such as EPF and ESI contributions.

How does the 'Employees Provident Fund' (EPF) work?

The EPF is a retirement savings scheme where both the employer and employee contribute a percentage of the employee’s salary. EPF is mandatory for organizations employing 20 or more workers, and it provides pension benefits to employees after retirement or in case of death.

What are the key features of the 'Maternity Benefit Act'?

The 'Maternity Benefit Act' provides female employees with paid maternity leave of up to 26 weeks. It ensures job security during pregnancy and after childbirth. The act covers female employees working in establishments with 10 or more workers.

What is the role of the 'Employees State Insurance' (ESI) Act?

The ESI Act provides medical care and accident insurance for employees earning below a certain salary limit (Rs. 21,000 per month). It covers both the individual employee and their family, with contributions from both the employer and employee.

What does the 'Equal Remuneration Act' ensure?

The 'Equal Remuneration Act' ensures that male and female employees doing the same work are paid equally, prohibiting discrimination based on gender. It was introduced to address gender-based pay disparities in the workplace.

What is the 'Gratuity Act' and when is it applicable?

The 'Gratuity Act' applies to employees who have completed five years or more of service in an organization. It ensures that employees are given a gratuity payment when they leave or retire, as a token of appreciation for their service.

What is the 'Shops and Establishments Act'?

The 'Shops and Establishments Act' is a labor law that applies to all types of businesses, including shops, commercial establishments, and factories. It ensures employees' rights to proper working hours, paid leave, and wage protection, aiming to prevent exploitation and discrimination.