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A Brief Introduction to Major Labour Laws in India

Indian labour law is legislation that regulates the workforce as workers compensation act in India. Indian governments at both federal and state levels have tried to provide a high level of protection for workers. However, in reality, this is not the case due to the form of government and the fact that labour is one of the subjects within the concurrent list of the Indian Constitution, and they are in form due to the Indian industrial act too. In 1948, the Minimum Wages Act 1948 required businesses to provide the basic wage set by the government while also limiting working hours to 40-hours. The government strongly discourages over time and the cost of overtime of 100 per cent of the amount paid.

An Overview of the Workers Compensation Act

The law on compensation for workers was created when it was discovered that workers were more vulnerable to dangers by using more sophisticated and advanced machines. As per the 1884 workers compensation law, the employer was required to take responsibility for compensating its employees only when catastrophic or fatal accidents occur in the course of a road. In 1885, the factory and mining inspectors recognised that the Fatal Act of 1885 was not enough.

The government gave it a listening ear when Legislative Assembly members, representatives of the employer, medical experts workers, and insurance experts established a committee. The committee produced a report that resulted in the Workers Compensation Act 1923.

After the Act was approved, it ended the process and offered relief to those who had to go through court, which is usually expensive. This was an attempt to obtain compensation every time they suffered an injury in their work.

Indian Industrial Disputes Act

The  Indian Industrial Disputes Act 1947 expanded to the entire state of India and regulated Indian labour law as far as it pertains to trade unions as workers employed by individuals in any sector within the boundaries of the Indian mainland. It was enacted on March 11, 1947; it entered into force on April 1, 1947. The Industrial Relations Code, 2020 repealed it.

An act that provides the investigations and resolution of industrial disputes and other purposes. The purpose of the Indian Industrial Disputes Act aims to ensure peace and harmony in the workplace by providing a procedure and mechanism to investigate and settle disputes between industrial parties through mediation, arbitration, and adjudication stipulated in the statute. This law’s principal and final goal is “Maintenance of a peace-loving work environment within India’s Industry in India”, clearly defined in the Statement of Objectives and reasons of the statute.

The Act also provides:

  • The provisions for paying compensation to the worker in the event of closure, reduction in pay or layoffs.
  • The procedure to obtain prior permission from the appropriate government for laying off or retrenching employees or shutting down industrial facilities
  • Unfair labour practices of an employer, a union or worker

Trade Unions Acts

A trade union is a group of workers that strives to assist workers with matters related to equitable pay, the working conditions, the working hours, and other benefits they should be entitled to due to their work. They function as a bridge between management and the workers. Despite being relatively new established institutions, they have transformed into an influence due to their direct impact on the economic and social life of people. To regulate and control the activities of these unions, different legislations that regulate the same are needed. In India Trade Unions Act of 1926 is the principal Act to control and manage the activities of trade unions. This article aims to explain and present several elements of this Act.

Indian Trade Union Act, 1947

The parliament adopted it and passed the Indian Trade Union Act in 1947. The Act attempted to incorporate Chapter III-A in the Trade Union Act, 1926, which set out the requirements for the mandatory recognition of any trade union. However, the Act was not brought into force. Therefore, the requirement for trade union recognition isn’t legally in that force in India.

Conclusion

Workers Compensation Act, is a type of insurance that offers medical and wage compensation for employees injured during work in exchange for the mandatory surrender of the employee’s proper claim against their employer for torts arising from negligence. The principal reason for the Indian Industrial Disputes Act 1947 is to ensure fairness between employees and employers, both workmen and workers and workers and their employers. The Industrial Disputes Act aims to create peace and harmony in the industrial sector by providing machinery and procedures for the investigation and resolution of industrial disputes through talks. Also, the Trade Union Act of 1926 was passed in 1926; however, it was enacted in 1927. The Act includes provisions about registration and regulation and benefits and protection for trade unions.

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Who is eligible for Workmen Compensation Act?

Employers with more than 20 employees fall under the Workers Compensation Act...Read full

When was the first industrial Act passed in India?

The law was passed on March 11 1947, and it entered into effect on April 1, 1947. The Industrial Relations Code, 202...Read full

What are the rules of a trade union?

Each Trade Union registered in the Trade Union act shall be a corporati...Read full

Why is workman's compensation required?

Workers’ compensation insurance assists businesses in avoiding the actual costs of an employee’s loss of...Read full