Web Library

List of major acts

The Factories Act 1948 regulate the hours of work, leaves and weekly holidays of employees. For instance, under the law, no factory worker should be allowed to work for more than 48 hours/week. As per the Act, the factories are kept clean and free of dangerous discharges from areas such as drains, privies and other nuisance. For instance, the factories should discharge the effluents and wastes as prescribed and ensure adequate ventilation, safe drinking water, maintenance of sufficient and suitable lighting, and first-aid kits among others. The Act also requires fencing of machinery and regulates the working near dangerous machines.

The Minimum Wage Act, 1948 establishes minimum wage rates paid to employees for a wide range of jobs. The minimum wages for the period from April to next March are declared by State Government every year.

The Payment of Wages Act, 1936 regulates the deductions that can be made from the wages and the timeline for payment of wages for a certain category of employees. For example, the deduction from the wages of an employee can happen if the employee is absent from duty, causes any damage or loss to the goods entrusted to the employee on the working premises etc.

The Payment of Bonus Act, 1965 requires employers to pay profit/productivity-based bonuses to their eligible employees. The Act applies to businesses with 20 or more employees and provides certain relaxations to newly set up establishments. For example, the act directs the employers to pay the bonus within the month the award becomes enforceable and it should be paid only in cash. Minimum bonus under this act is 8.33% and maximum 20%

The Employees Provident Funds and Miscellaneous Provisions Act, 1952 requires businesses with 20 or more employees to register their businesses and contribute under the social security benefit schemes such as provident fund, pension and deposit-linked insurance in respect of the eligible employees. Employee contribution 12% of his basic and employer has to contribute 13%. Many types of pensions are declared under this act.

The Employees’ State Insurance Act, 1948 provides benefits to eligible employees in case of sickness, maternity and employment injury. Under the Act, businesses with 10 or more employees (in some States, it is 20 or more employees) register themselves and contribute towards the funds maintained by the government in respect of their eligible employees. Employee contribution 0.75% of their total salary and employer has to contribute 3.25%. Many types of medical benefits are available under this act.

The Payment of Gratuity Act, 1972 requires establishments with 10 or more employees to pay gratuity to employees who have completed 5 years of continuous service at the time of separation of employment. For instance, if an employee is terminated and subsequently re-employed, the service would not be deemed continuous.

The Maternity Benefit Act, 1961 regulates the employment of a woman during her pregnancy and after childbirth. For example, it directs certain employers to extend paid (100 %) maternity leave for 26 weeks.

The Employees’ Compensation Act, 1923 requires certain employers to pay compensation to their employees in case of any injury by accident in the course of their employment.

The Industrial Disputes Act, 1947 the termination/retrenchment of workmen is regulated under this act. For example, this Act requires the employer to give at least 1 month’s written notice or notice pay and severance compensation at the rate of 15 days’ wages for every completed year of service and part thereof.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 prohibits sexual harassment of women in the workplace and lays down a grievance redressal mechanism to deal with sexual harassment complaints. Under this Act, establishments/units with 10 or more employees are required to constitute an internal committee to inquire into sexual harassment cases.