Factbox: India's stringent labour laws

  • Reuters, New Delhi
  • Updated: Jun 30, 2014 13:14 IST

India has a slew of laws and rules that shape the labour market, regulating the terms of work, hiring and firing, and the working conditions.

While the regulations are meant to enhance the welfare of workers, companies say they often have the opposite effect by encouraging them to stay small or hire contract workers to circumvent legal restrictions.

The laws benefit only a fraction of the workforce, as 93% of workers are employed in informal sectors who lack any form of job or social security.

Newly elected Prime Minister Narendra Modi has set in motion the first major revamp of the archaic labour laws, part of a plan to revive the flagging economy, boost manufacturing and create millions of jobs.

Here are some prominent laws:

The Industrial Disputes Act of 1947
The law guides the hiring and firing rules of the industrial sector. It requires that any company employing more than 100 workers needs to get permission from the government before laying off workers, which is rarely granted.

In the event of dismissal, the law says, a worker has up to three years to file an unfair dismissal claim.

The law drives up costs for midsized firms and encourages companies to stay small.

The Factories Act of 1948
The law governs health and safety at factories and comes into effect when a firms hires its 10th worker, if it uses electricity or its 10th worker, if it does not use electricity.

The law includes some unusual requirements, including that every factory must provide "a sufficient number of spittoons in convenient places".

The act forbids women from working at night and imposes other restrictions on their employment.

The Contract Labour Act of 1970
The law applies to businesses which employ 20 or more workers and mandates them to seek government approval before hiring contract labour.

From Around the Web
Sponsored by Revcontent

also read

Harish Rawat backtracks, says no Chinese incursion into Uttarakhand
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome