Blog Details

Author: Associate Debasmita Patra

The changing economic standards of the nation owe a significant part to the increase in the employment sector, wherein initiatives like the ‘Startup India' and 'Make In India,' etc. are creating and providing myriad opportunities for that purpose. Having been employed, irrespective of where and to whom, it is essential to keep certain important labor laws in mind.

1.     MINIMUM WAGES ACT,1948

The Minimum Wages Act, 1948 fixes the minimum rates of wages in case of certain employments. The state itself prescribes the minimum wages by giving notification in its official Gazette.

‘Wages' include all remuneration capable of being expressed in monetary terms, such remuneration being payable to a person employed, on the fulfillment of the contract of employment. The value of any house accommodation or contribution paid to any personal or provident fund or any expenses of similar nature does not come into the purview of ‘wages.'

Under the Act an employee is:

·      Any individual who is hired or employed, whether skilled or unskilled, under a particular schedule during which minimum rates of wages are fixed.

·      Any worker, to whom any material or article is given out by another individual to be produced, altered, decorated, finished or repaired or otherwise processed for sale purposes.

·      Any employee declared to be an employee by the government concerned.

2.     EMPLOYEES PROVIDENT FUND AND MISC PROVISIONS ACT, 1952

The Employee Provident Fund Act embraces all the pension funds and provident funds for employees of any employer who has employee strength of 20 or more persons.

The recent amendment of 2014 has brought about radical changes in the act. Employees earning or having a remuneration exceeding Rs 15000 per month shall be allowed to avail the provisions under the Provident Fund scheme. Similarly, the wage ceiling for such eligibility has been increased from Rs 6500 per month to Rs 15000 per month. Other amendments include a minimum monthly pension to an individual to be not less than Rs1000. The employees contribute to the Provident Fund at the rate of 12% of the wages with the employer paying an equal amount.

3.     PAYMENT GRATUITY ACT, 1972

The Gratuity Act applies to –

·      Every factory, port, mine, plantation, and the railway company.

·      Every shop or establishment in which at least ten or more persons are employed on any day of the preceding twelve months.

·      Such other establishments as notified by the Central Government.

The Act enforces the payment of a ‘gratuity' amount as a reward for long service or a retiral benefits. An employee can avail such benefits only on termination of the contract of employment due to superannuation, retirement or death or disability. The employee must complete at least 5 years of service to enjoy gratuity benefits.

4.     MATERNITY BENEFIT ACT, 1961

This Act is an excellent benefit for expecting women. Since the inception of the Act, women have started getting maternity leaves quickly and have, thus, stopped worrying about having a baby without keeping the dire consequences in mind. The Maternity Act aims at safeguarding the dignity of parenthood.

Under the Act, women employees will be given paid leave for six weeks immediately after the day of delivery or miscarriage. The maximum maternity benefit that can be availed by women shall not be more than twelve weeks, not more than six weeks of which shall precede the expected delivery date.

A pregnant woman can also request her employer to keep her devoid of work that is arduous, requiring her to stand for hours, etc., during the month immediately preceding her date of delivery.

5.     SEXUAL HARASSMENT AT WORKPLACE (PROHIBITION, PREVENTION, AND REDRESSAL) ACT, 2013

This Act was enacted by the Parliament to protect women against sexual harassment at workplace and works towards the prevention and redressal of complaints of similar nature.

Every company with more than ten employees has to compulsorily constitute an Internal Complaints Committee (ICC) to cater to the needs of the aggrieved women. The Sexual Harassment Act also includes provisions for the setting up of Local Complaints Committee (LCC) in each district of the state to cater to similar needs of companies who employ less than ten people.

The complaint made by any aggrieved woman maybe in writing to the ICC or LCC, as the case may be, within three months from the date of such incident. In case the aggrieved woman is unable to make a complaint in this regard, due to any reason, the same can be filed inter alia by her relative or legal heir.