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Labour Laws in India: All Proposed Reforms & Amendments
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According to the Factories Act of 1948, normal working hours for adults are 9 hours per day amounting to 48 hours per week.
Further, the working hours for young workers are 4.5 hours per day.
In case of paid vacation, the Act lays down that any worker who has worked at least 240 days in a year is entitled to a paid
leave of 12 working days. However, the duration diers for adults and child workers. While an adult worker is entitled to 1
day of leave for every 20 days of service the ratio for child workers is 1:15.
Workers are entitled to paid days-o during public and religious festivals, including memorial ad religious holidays. The main
three national public holidays recognized by the constitution are - Republic Day (January 26), Independence Day (August 15)
and Gandhi Jayanti (October 2).
The Trade Union Act of 1926, last revised in 2012, provides for freedom to form associations or unions or co-operative
societies. It also lays down the procedure for registration of such a Union guaranteeing the enjoyment of all the rights
promised to them.
The Constitution, under the Industrial Dispute Act, guarantees the right to strike. All citizens have the right to assemble
peacefully without arms. The Act lays down that members of the union must inform the employer at least six weeks prior to
the proposed date of strike, who then should notify the appropriate government within ve days.
For further details about all the above labor laws and more, you can refer to this article. (http://www.paycheck.in/main/labour-
law-india)
Chapter 5B of the Industrial Disputes Acts of 1947 requires prior approval of the appropriate government before any layo,
retrenchment or closure in establishments employing 100 workers or more.
Section 9A of the Act mandates 21 days notice before aecting any change in established conditions of service of any
employee.
The Contract Labor (Regulation and abolition) Act of 1970 provides for engaging contract workers for temporary, seasonal
work but not for work of a perennial nature. Since regular worker are becoming less productive, more expensive, hard to put
to immediate work and legally challenging to lay o in the face of falling demand, the employers nd this feature of the Act
very restrictive.
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4/11/2017 LabourLawsinIndia:AllProposedReforms&Amendments
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But, these and other glitches have not gone unrecognized. The government has been making eorts with of amendments in the
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labor acts to provide for smoother functioning. Some of the eorts made in this area by the central (tel:011-40506333)
government are as follows:
The Payment of Bonus (Amendment) Bill, 2015 proposes to make more employees eligible for bonus and to double such
payments. It also proposes to such statutory bonus payments from Rs. 10,000 per month under the original act of 1965 to Rs.
21,000 per month.
The Small Factories (Regulation of Employment and Conditions of Service) Bill, 2014 attempts to make it easier for
manufacturing rms employing up to 40 workers by exempting the of six labor laws including the Factories Act, the Industrial
Disputes Act of 1947, and the Shops and Establishment Acts of respective states.
726 The Labor Code on Wages Bill, 2015 aims to replace four laws pertaining to minimum wages, payment of salaries and
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benets. These include the Payment of Wages Act of 1936, the Minimum Wages Act of 1948, Payment of Bonus Act of 1965
and the Equal Remuneration Act of 1976.
The Labor Code on Industrial Relations Bill, 2005 proposes to substitute three laws including the Trade Unions Act of 1926,
the Industrial Disputes Act and the Industrial Employment (Standing Orders) Act of 1946.
The Child Labor (Protection and Regulation) Amendment Bill, introduced in 2012 proposes that children below the age of
fourteen years may only be allowed to work in their own family enterprises.
You can read more about such reforms and their impacts here. (http://www.thehindu.com/business/Industry/government-aims-to-
move-ve-more-reforms-to-labour-laws/article7955265.ece)
Industrial unit owners and employers of companies employing up to 300 employees can lay o employees or shut down units
without permission of the government as against the earlier maximum limit of 100 employees;
In such cases, the worker may raise an objection in three months as opposed to no time limit earlier); and
A labor union can be formed with the approval of 30 per cent of the total membership as against the earlier 15 per cent.
Factories operating without power may employ a maximum of 40 laborers (as opposed to 20 earlier) and the factories
operating with power may employ a maximum of 20 laborers, as against the earlier number of 10.
Any employee with a grievance against his/her employer for the violation of this Act may seek a redress in any court of law.
You can read more about these changes and their impacts here. (http://lawquestinternational.com/article/labour-law-changes-
india)
Companies now have the exibility to hire employees or lay them o to adjust to the demand-supply scenario that exists in
the markets at any given time.
Loss- making businesses can be dumped without delay or without loss of precious resources. With the reduced thresholds for
labor union memberships, inter-union conicts and multiplicity can be reduced or even completely avoided.
Conclusion
These changes are seen as a positive step towards encouraging employment generation and focus on production. The
Confederation of Indian Industry has stated We have been recommending these key reforms for bringing in simplication and
exibility in engagement and deployment of labor.
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