The Minimum Wages Act, 1948 is a social-welfare legislation that aims to regularize the payment of wages for certain classes of employments known under the Act as scheduled employments. The objective is to ensure that workers are not exploited by being forced to work for wages below the specified threshold set by either the Central or State Government. The ‘appropriate government’ under the Act fixes minimum wages by way of notification in the Official Gazette…
Introduction Due to the overwhelming response to our previous blog COVID-19 and Termination of Employment: A Labour Law Perspective, we have decided to provide employees with answers to some frequently posed questions. If you are an employer looking for alternatives to layoffs, check out our latest blog Alternatives to Layoffs & Retrenchment During COVID-19. The COVID-19 pandemic has caused widespread layoffs that have led to a substantial portion of the workforce being unemployed. In such…
Introduction India’s unorganized sector workforce has been at the forefront of driving the economy’s rampant growth prior to the onset of COVID-19, however, despite increased economic prosperity exploitation, poverty and lack of basic necessities are still commonplace. The total amount of informal workers participating in the workforce is estimated to be around 93% of the labour component in the country according to the economic survey of 2018-19. The ‘Report of the Committee on Unorganised Sector…
The economic consequences of COVID-19 have been formidable, several businesses have closed down while others teeter on the brink of closure. Vendors are faced with force majeure clauses invoked by cash strapped clients. Cash flow concerns exist along the supply chain and affect the end-consumer as well, who has either taken a pay cut or is out of a job. These circumstances have forced employers to undertake several cost-reduction/downsizing measures such as layoffs, retrenchment, compulsory…
This article is part of a series of blog posts by Simpliance that aim to guide both employers and employees with respect to the best practices of labour law compliance. They also act as a guide for individuals unfamiliar with the regulations governing employment in India. This blog on Industrial Disputes is the second post in the series, with the first one being on minimum wages. Introduction Regardless of the level of economic development, policies…
Introduction The International Labour Organization (ILO) was founded in 1919, following World War-I as a social engineering project that sought to safeguard the rights of workers and ensure that freedom, equity, and dignity in conditions of work are observed universally. It is the first and oldest specialised agency of the UN and was originally founded as a part of the League of Nations. Currently, 187 of the 193 member states of the United Nations are…
Micro, Small and Medium Enterprises (‘MSME’) play a crucial role in a developing country like India. MSME industries are in fact the backbone of the economy as has been quoted by many economists. The MSME sector contributes to roughly 45% of India’s total industrial employment, approximately 50% of India’s total exports and almost 95% of all industrial units of the country and around 6000 types of products are manufactured in these industries. With the growth…
Introduction/Author’s Note: Series – Production of goods and provision of services constitute the cornerstone of any economy, and its labour is the driving force behind the provision of such goods and services. Therefore, it is crucial for an employer to ensure that labour is being compensated adequately for services rendered, in order to maintain a cordial relationship at the workplace and ensure employee satisfaction. The compensation does not only involve remuneration in the form of…
Introduction For a country like India that has an enormous working population, provision of social security and health related benefits through a public insurance scheme is both necessary and cost-effective. The Employee State Insurance Act, 1948 (ESI) was enacted to establish a framework for a self-financing social security scheme that provided workers with numerous benefits. The Act established a statutory body in the form of the Employee State Insurance Corporation (ESIC) that is responsible for…
Introduction The Employee Compensation Act, 1923 is a social welfare legislation that aims to provide payment to individuals employed in certain types of employment with expeditious compensation for injuries sustained in accidents during the course of their employment. It also provides exceptions for the employer’s liability, for example, where there is willful disobedience or negligence on part of the employee. The Act also provides for a scheme of distribution of compensation to dependents in case…
