You Should Know These 10 Employment Laws in India

India is changing rapidly because of its economy. Over the past 10 years India has grown in all the sectors.

In order to sustain the growth rate of 10% we need private sector to grow. And private sector could only grow when they hire employees in manufacture as well as servicing sector.

Therefore, young graduates have an opportunity to work for these companies and earn a decent living. However, workers and employees are not familiar with their rights.

Government of India has created certain labor laws that protect employee’s right and their well being. In this article we talk about certain labor laws that will protect your rights as an employee or a worker.

It really does not matter whether you are a blue collar worker or a white collar. You must know these laws in case you are exploited by your employers.

Know these Employment Laws in India

Whether you are working in a private firm or doing a sarkari naukri, here are 10 important labor laws the government of India created for employees.

1. The Payment of Wages Act – 1936

The first labor law in our list is The Payment of Wages Act formulated in the year 1936. It was created to ensure the wage that an employee gets.

Employers cannot deduct any money and they have to pay every month in time. It applies for average wage of Rs 10,000/- per month.

If you are not paid by employer then employer could be put in jail. Even if you are terminated by the employer you are eligible for the salary you worked for that particular month.

2. The Employees PF & MP Act – 1947

The Employees PF and MP act passed in the year 1947 help retirees and old people to claim their Provident funds and other benefits.

You get the benefits like retirement pension, medical care, housing, family obligations, education of benefits and financing insurance policy.

The law would ensure the rights of elderly people so that they don’t have bother about their life after retirement. If you have a problem with employer then this act will protect you.

3. The Apprentices Act – 1961

The Apprentices Act came in the year 1961 and the reason is that to improve the old skill by theoretical and practical training in the industry.

Here you are allowed to take causal leave of 12 days, medical leave of 15 days and extraordinary leave of 10 days in a year.

It is employer responsibility to provide you with perfect training. Graduate apprentice must gate at least Rs 3650/- per month.

You need to work 42 to 48 hours a week. Hence, you should know this if you are an apprentice.

4. The Maternity Benefit Act – 1961

Maternity benefit act is of great benefit for woman. Now they do not have to worry about maternity leave because this act protects them.

Every pregnant working woman is eligible for healthcare, maternity leave and other benefits if she has worked for at least 80 days.

Here you get leave with average pay for 84 days, 6 weeks before and after the delivery. She also get bonus of Rs 3500/-.

They will do light work for 10 weeks after joining again. If employer fails to do then the company or employers could be imprisoned.

5. The Workmen’s Compensation Act – 1923

This act was passed for circumstances where an employee has to given compensation because he or she got injured in an accident while working.

If you are working aboard for the company then also you are eligible for workmen’s compensation act.

In case of death you could be paid up to Rs 120000/- and for being disabled you are paid around 140000/-.

If employer is not able to pay then he is liable for criminal offense.

6. The Payment of Gratuity Act – 1972

Every employer has a right to obtain gratuity under the Payment of Gratuity Act – 1972.

You have to complete one year of service for the purpose of gratuity in case of his or her death.

Wages shall consist of basic and DA. You have to know about this law so that if something goes wrong then you could be protected.

7. The Factories Act – 1948

The law is created to safeguard the rights and interest of workers from any form of exploitation by the factory owners.

According to this labor law factory owners and employers have to guarantee certain working conditions to their employees.

Like sanitation, proper ventilation for air and light, machinery and other instruments must be good condition, there is must fire fighting instruments.

Maximum working hour should not be more than 48 hours a week. Weekly holiday is necessary. You should be aware of this.

8. The Industrial Disputes Act -1947

If you have a dispute with your employer then you could settle peacefully through legal means.

Here employer has to give a notice before they fire an employee. At least six weeks of time must be given. You could also talk about your wages, holidays and working hours with your employers.

You can settle disputes with your employer peacefully by negotiating or taking to court.

9. The Payment of Bonus Act – 1965

This act protects rights of employees in certain industries. You are eligible if you make over Rs 10,000/- per month. You have got complete right to refer any dispute to labor court or a tribunal.

Within the time period of one year you have right to claim bonus payable under the act. Hence you should make best use of it. Awareness is very important if you want to know your rights.

10. The Employees State Insurance Act – 1948

This act ensures benefits for employees who are sick and got injured while they were working.

Employers need to deduct and deposit the money every month in the employees account. They also need to grant leave to the insured employees on the basis of sickness certificates.

Employer has to cover the expenses in case of funeral or other tragedy to its employees.

So these were 10 labor laws that every employee should know and aware of in case their rights had being infringed.

To be able to make benefit of these laws you need to fulfill certain conditions, otherwise these laws might favor the employer instead of favoring you.

As an employee you must know your responsibility and if you are right then there is no problem. But if you are on the wrong side then above mentioned laws cannot help you.

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