• Legis Scriptor

Employment Protection Goals in India

Authored by Pulkit Tiwari

Keywords: Employment, the Factories act (1948), industrial disputes act (1947).


India is a land of workers meaning majority of the people here belong to the working class and even in this section majority belongs to small factory and industry workers who mostly operate on small wages or on a very salary lowly quantified. These workers face a lot of oppression which are created by their economic conditions or work conditions and this problem does not just belong to some but almost all so it became important for the governing forces of the country to pass laws that would try to protect these workers and employees to a greater extent.


India has had a long history of labours, industries, and revolutions. Ever since the time of independence, there have been movements for the upliftment of conditions of labours and employees. The peasant movement, industrial movements, and rise of labour unions have played an active role in the evolution of labour laws that in turn paved way for regulation of employment and protection of labours. These movements set a strong precedent and forward a motion to protect the rights labour. It created a system of organised workforce and brought the rights of labours into the political system.

Over the years, labours and employees have stood up for their rights and the government has enacted several laws to protect their rights. The concept of job security, basic minimum wage, and maximum working hours are codified into laws now and these laws have helped in upliftment of labours and employees.

How and who protects the rights of employees?

According to the Indian Constitution, the central and state government in India are empowered to pass various legislations to regulate and protect the rights and interests of employees. They are also capable to enact laws so that they could not only enforce their rights but also generate employment opportunities. Depending on the type of industry, nature of work, working conditions, rational demands of employees, remunerations, and location, etc., the government enacted the Factories act (1948), industrial disputes act (1947). Other acts were enacted by various state governments. The government has the powers to make laws pertaining to the security and stability of employees. These acts can also be enforced by courts in case aggrieved employees approach the judiciary to enforce rights provided by these laws.

Who is protected by these acts and what are the different categories of workers?

Worker: The Factories Act of 1948 mentions the word ‘worker’ as a person that is directly employed by/through any kind of agency in any kind of manufacturing process or in any type of work incidental to or attached with subject to the manufacturing process or with the manufacturing process.

Workmen: The Industrial Act of 1947 distinguishes employees into two categories i.e. workmen and non-workmen, and we would just focus on defining the former. The former in the act is indicated as a person in an industry that carries out any type of manual/unskilled/skilled/operational/clerical/technical/supervisory work for either hire or reward or both. This category strictly excludes those who are employed in an administrative/supervisory/managerial capacity who draw wages exceeding Rs 10,000.

For the recognition and protection of certain special kinds of employees i.e. contract labours and fixed-term employees, the idea of special laws was suggested and the same was enacted.

Do Contracts need to be in writing? Are employees required to be informed in writing?

In India, an employee-worker relationship can either be expressed or suggested, composed or oral. Be that as it may, to maintain a strategic distance from any debate with respect to the terms of business, it is a basic practice to execute a work contract. Just a couple of Indian states, for example, Karnataka and Delhi require an employer to give a composed work agreement to representatives utilized in shops and business foundations.

Are any terms inferred in contracts of employment?

Terms and condition of service which are managed and commanded by rules comprise inferred terms of an employment contract. Along these lines, arrangements identifying with the instalment of wages, legal rewards, gratuity payments, and compulsory federal retirement aide commitments are viewed as inferred terms of work.

Are any minimum employment terms and conditions set down by law that employers have to observe?

Shops and establishment Acts mentions necessary terms and conditions that include working hours, leave entitlements, the procedure for termination of employment, holidays, etc. for certain employees. An important thing to note is that every employer would be required to adhere to applicable social security legislation. For instance Employees Provident Funds and Miscellaneous Provisions Act of 1952 states that if an employer employees 20 or more employees he/she should make necessary contributions to the employees that earn a lesser than a monthly salary of Rs 15,000.

To what extent are terms and conditions of employment agreed through collective bargaining? Does bargaining usually take place at a company or industry level?

Collective bargaining agreements are a predominant feature of the manufacturing sector and are the charter of demands and several rounds of negotiations between an employer and members of a trade union. The collective product of bargaining agreements can only establish better employment conditions (such as remuneration (including bonuses and yearly increments), leave entitlement, and so on) than those prescribed under various labour law statutes. In India, collective bargaining may take place at the company, industry, state, and/or central level, depending on the number of employees taking part in such trade unions.

Recognition of trade union:

Trade Unions are administered by the Trade Unions Act 1926 (TU Act). The TU Act sets out the system for the enrolment of worker's guilds however doesn't make enlistment obligatory. Certain state-explicit resolutions, for example, the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971 (Maharashtra TU Act) furnishes that an association with a participation of at any rate 30% of the absolute number of representatives utilized in any endeavour may apply to a mechanical court for acknowledgment. When the worker's organization is perceived, refusal by a business to deal by and large in compliance with common decency is viewed as uncalled for work practice.

Rights in case of business sale:

Indian labour laws don't accommodate the programmed move of employees according to a business deal without acquiring the assent of the representatives. In an offer deal situation, the obtaining of offers by a purchaser won't bring about any adjustment in boss and just the shareholding example of the element will change. In this manner, there will be no worker assent necessities in the surviving situation.

In the event that the exchange involves an advantage/business deal (counting related representatives), at that point the assent of the workers must be acquired for the exchange of their work to the purchaser. Further, if the purchaser doesn't offer: (I) congruity of administration alongside credit of the time of administration delivered by the representative to the dealer, and (ii) no less ideal terms of work than the terms delighted in with the merchant, at that point all representatives who qualify as 'laborers' under the ID Act will be qualified for legal notification of one month (or pay in lieu thereof) and conservation pay (at a pace of 15 days' compensation for each finished year of administration).


As seen in the article many different laws post-independence have been passed for the protection and safety of the workers and employees. The laws are clear in words and try to eradicate every root problem possible and that is faced by the Indian courts in the history. These laws play an important role because distress to the worker class in India would cause a major back set for the country because these are the people who are the work force of the country. The initial step of passing a law has been long done but its proper implementation in every part of the country is not seen.