An Introduction to Labour law; Concept and Classification

Q.1  What is Labour Law? Give a classification to various labour laws in India

Ans; 

LABOUR LAWS - CONCEPT,. ORIGIN, OBJECTIVES AND.CLASSIFICATION.

“Labour Law is the body of laws, administrative rulings, and precedents which address the relationship between and among employers, employees, and labor organizations, often dealing with issues of public law”. The terms Labour Laws and Employment Laws, are often interchanged in the usage. This has led to a big confusion as to their meanings. Labour Laws are different from employment laws which deal only with employment contracts and issues regarding employment and workplace discrimination and other private law issues.

Employment Laws cover broader area than labour laws in the sense that employment laws cover all the areas of employer/employee relationship except the negotiation process covered by labour law and collective bargaining.

Labour Laws harmonize many angles of the relationship between trade unions, employers and employees. In some countries (like Canada), employment laws related to unionised workplaces are different from those relating to particular individuals. In most countries however, no such distinction is made.

The final goal of labour law is to bring both the employer and the employee on the same level, thereby mitigating the differences between the two ever-warring groups.

Origins of Labour Laws

Labour laws emerged when the employers tried to restrict the powers of workers' organisations and keep labour costs low. The workers began demanding better conditions and the right to organise so as to improve their standard of living. Employer’s costs increased due to workers demand to win higher wages or better working conditions. This led to a chaotic situation which required the intervention of Government.  In order to put an end to the disputes between the ever-warring employer and employee, the Government enacted many labour laws.

In India the labour laws are so numerous, complex and ambiguous that they promote litigation rather than the resolution of problems relating to industrial relations. The labour movement has contributed a lot for the enactment of laws protecting labour rights in the 19th and 20th centuries. The history of labour legislation in India can be traced back to the history of British colonialism. The influences of British political economy were naturally dominant in sketching some of these early laws. In the beginning it was difficult to get enough regular Indian workers to run British establishments and hence laws for chartering workers became necessary. This was obviously labour legislation in order to protect the interests of British employers.

India provides for core labour standards of ILO for welfare of workers and to protect their interests. India has a number of labour laws addressing various issues such as resolution of industrial disputes, working conditions, labour compensation, insurance, child labour, equal remuneration etc. Labour is a subject in the concurrent list of the Indian Constitution and is therefore in the jurisdiction of both central and state governments. Both central and state governments have enacted laws on labour issues. Central laws grant powers to officers under central government in some cases and to the officers of the state governments in some cases.

1.2 Classification of Various Labour Laws

There are over 45 legislations on labour from the Central Government and the number of legislations enacted by the State Governments is close to four times that of the Central Acts.

Labour Laws can be classified into the following eight categories:

(i)                 Laws related to Industrial Relations

(ii)               Laws related to Wages

(iii)             Laws related to Specific Industries

(iv)             Laws related to Equality and Empowerment of Women

(v)               Laws related to Deprived and Disadvantaged Sections of the Society

(vi)             Laws related to Social Security

(vii)           Laws related to Employment & Training

(viii)         Others

The Industrial Disputes Act, 1947

Tags; Labour Laws, Important questions for M.B.A, H.R, Human Resource Management, Labour Legislation University Questions for B.Com (Hons), M.com, Articles on Labour legislation, Interview questions with solutions For Competitive Examinations. The Industrial Disputes Act , 1947 is a principle central legislation which provides  for settlement of industrial Disputes.  The main objective of the Act is to secure industrial peace by preventing and settling industrial disputes through internal works committees or external machinery of conciliation (consisting of Conciliation Officers, Boards of Conciliation  and Courts of inquiry) or compulsory adjudication(consisting of Labour Courts, Industrial Tribunals and National Tribunals) and through Voluntary arbitration. This Act  also protects the service conditions of employees during pendency of Industrial disputes proceedings. It also prohibits employers and workmen from indulging in any unfair trade practices.

Questions; 

• Explain in brief different methods of resolution ofIndustrial disputes as provided under the Industrial Disputes Act, 1947.
• What is the Industrial dispute act of 1947?
• Explain the history and importance of the Industrial Disputes Act, 1947
The Industrial Disputes Act, 1947

Applicability of Act

This Act is applicable to all Industries in the country.

Important Definitions of The Industrial Disputes Act, 1947

 “Industry”

means any business, trade, undertaking, manufacture or calling of the employees and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.

Question: Explain Salient Features or Provisions Of Payment of Bonus Act, 1965

PAYMENT OF BONUS ACT 1965

Bonus is a very controversial issue in the field of industrial relations. Before 1965, till the enactment of the Payment of Bonus Act, 1965 demand for Bonus was not a statutory but a judicial right. One of the main reasons for all these complications was the absence of an express legislative definition of the term “Bonus.” This was not remedied under the Bonus Act also. Keeping in view the above issue, the article seeks to take up an overview of the nature of the term “Bonus” as it has evolved through the years and its present form in the Payment of Bonus Act, 1965. The term “Bonus” has not been defined in any legislative enactment. Even the recent Payment of Bonus (amendment) Bill, 2002 has not defined the term. Pronouncements by committees, courts however to a great extent give an insight into the nature of Bonus. The word “Bonus” owes a Latin origin. It means “gift or boon.” The Corpus Juris Secundum states that it has been said to carry the idea of uncertainty and indefiniteness, something that may or may not be paid depending on the varying circumstances.

PAYMENT OF BONUS ACT 1965

Important Provisions;

Applicability of Act (Sec 1)
Every factory wherein 10 or more persons are employed with the aid of power or An establishment In which 20 or more persons are employed without the aid of power on any day during an accounting year.

Establishment: Establishment includes departments, undertakings and branches, etc.

Computation of available surplus (Sec.5):

The following sums shall be deducted from the gross profits as prior charges, namely:-

(a)  any amount. by way of depreciation admissible in accordance with the provisions of sub-section (1) of section 32 of the Income-tax Act, or in accordance with the provisions of the agricultural income-tax law, as the case may be:

Provided that where an employer has been paying bonus to his employees under a settlement or an award or agreement made before the 29th May, 1965, and subsisting on that date after deducting from the gross profits notional normal depreciation, then, the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exercised once and within one year from that date) continue to be such notional normal depreciation;

(b)  Any amount by way of ²[development rebate or investment allowance or development allowance] which the employer is entitled to deduct from his income under the income-tax Act;

(c)  subject to the provision of section 7, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profit and gain during that year;

Components of Bonus:- Sec. 2(21) : Salary or wages includes dearness allowance but no other allowances e.g. over-time, house rent, incentive or commission.

Separate establishment (Sec. 3) : I profit loss accounts are prepared and mainland in respect of any such department or undertaking or branch, then such department or undertaking or branch is treated as a separate establishment.

Disqualification and Deduction of Bonus: Sec 1:

• On dismissal of an employee for fraud; or
• riotous or violent behaviour while on the premises of the establishment; or
• theft, misappropriation or sabotage of any property of the establishment; or

• Misconduct of causing financial loss to the employer to the extent that bonus can be deducted for that year.

Computation of gross profits: For banking company, as per First Schedule. For others, as per Second Schedule.

Eligibility of Bonus: An employee will be entitled only when he has worked for 30 working days in that year. Sec. 8

Payment of Minimum Bonus: 8.33% of the salary or Rs.100 (on completion of 5 years after 1st Accounting year even if there is no profit). Sec. 10

Eligible Employees: – Employees, drawing wages up to Rs.10000/- per month or less. For calculation purposes Rs.3500 per month maximum will be taken even if an employee is drawing up to Rs.3500 per month. (Sec. 12)

Time Limit for Payment of Bonus: Within 8 months from the close of accounting year. (Sec. 19)

Set-off and Set-on: As per Schedule IV. Sec. 15

Submission of Return: In Form D to the inspector within 30 days of the expiry of time limit under Section 19. Rule 5

Maintenance of Registers and Records etc. Sec. 2(21) :

• A register showing the computation of the allocable surplus referred to In clause (4) of section 2, in Form A.
• A register showing the set-on and set-off of the allocable surplus, under section 15, in Form B.

• A register showing the details of the amount of bonus due to each of the employees, the deductions under sections 17 and 18 and the amount actually disbursed, In Form C.

Non applicability of the Act: – Act not applicable to certain employees of LIC. General Insurance, Dock Yards, Red Cross, Universities* Educational Institutions, Chambers of Commerce, Social Welfare Institutions. etc.Sec.32

Penalty : For contravention of any provision of the Act or the Rules: Up to 6 months or with fine up to Rs.1000. Sec.28.
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 Data Sheet

 1.      The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and matters connected therewith. 

2.      The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.

3.      Details of amendments to  the Payment of Bonus Act, 1965:

S. No.	Year of Amendment	Eligibility limit (Rs. Per Month)	Calculation ceiling (Rs. Per Month)
1.	1965	Rs. 1600	Rs. 750
2.	1985	Rs. 2500	Rs. 1600
3.	1995	Rs.3500	Rs. 2500
4.	2007	Rs. 10000	Rs. 3500

Business Legislation; Top 100 Objective Questions-MCQ

"Indian Contract Act 1872": Top 100 Important MCQ/ Objective type Questions 

Tags; ICA-1872, Indian Contract Act-1872, Business Legislation, Business Regulatory Framework, Mercantile Laws, Commercial Laws, Business Laws, Important Questions in Commerce, B.Com (Hons) M.com, CA-CPT, University Exams, Interview Questions, Competitive Questions In Law.

Important MCQ (Multiple Choice Questions) 

(Quesion Nos:1-25 | 26-50 | 51-75 | 76-100 )

1. An agreement enforceable by Law is known as….

(a) enforceable acceptance

(b) accepted offer

(c) approved promise

(d) contract

2. Every promise and every set of promises, forming the consideration for each other, is an

(a) agreement

(b) contract

(c) offer

(d) acceptance.

Importance and types of Teaching Aid in Teaching Learning Process

Tags: Visual Tools in teaching and learning | Teaching – learning Process: Tools and techniques.| teaching and learning materials | important aspects of teaching and learning processes | Technology-Teaching-Aid-In-Teaching-Learning-Process | success of teaching in terms of the learning process | AIDS IN THE TEACHING LEARNING PROCESS AT THE TECHNICAL | computer teaching aids | Smartroom Teaching | Benefit of Smart room teaching | Audio visual aids in Teaching Aid Learning process |

Technology as Teaching Aid, In Teaching Learning Process.

Technology As A Tool for Teachers

Teachers have always used tools to help them present the material to be learned. Some of these tools we classify today as "low tech"---such things as chalk and chalkboards, magic markers and poster paper; others by comparison have been more "high tech"---tape recorders, 8 mm movie projectors, film strip projectors, slide projectors, overhead projectors, VCRs, and laser disc players.

Today's newest "high tech" educational tools include computers and interactive software. From a teaching perspective, they offer many advantages ranging from classroom management, recordkeeping, assessment, lesson planning, and lesson presentation. Computer software exists that enables a teacher to accomplish all these tasks and more in less time than traditional methods.

The time saving features of databases, spreadsheets, desktop publishing, and word processing software allow teachers to organize their lessons, their classroom budgets, their communication with parents, and children's IEPs, assessment portfolios, and personal records. Once created and stored on hard drive or floppy disk, the files containing these materials are accessible and available for modifying and updating.

Factories Act, 1948, Main Provisions

Question: Describe objective, scope and coverage of factories act 1948. What are the employer’s obligations in it?

Introduction:

There are three major legislations relating to occupational health and safety in India. They are related to the health and safety of persons employed in factories, mines and ports. The Factories Act, 1948 is one of the important legislation in India, in this regardTHE FACTORIES ACT, 1948

Objectives

1.      To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories.

2.       To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory.

3.    To regulate the working condition in factories, regulate the working hours, leave, holidays, overtime, employment of children, women and young person ext.

"Business Legislation"-"Commercial Laws" Top University Short Questions

Short Questions for M.com, B.Com (Hons), Commercial Laws, Mercantile Laws, Business Legislation, Indian Contract Act-1872. Contract of  Sale of Goods Act-1930, Top University-Interview Questions, Commerce, M.B.A, L.L.B, Law

1. What do you mean by Revocation of an Offer?

2. What do you mean by Capacities of Parties.

3. A made an offer to sell his scooter for Rs. 5000 to B. B also made a similar offer to buy A’s scooter for Rs. 5000. A and B’s offers cross each other in the postal process. Is there any contract made in this case?

4. Offer and Invitation to Offer.

5. Explain the term "Quantum meruit".

6. Is adequacy of consideration necessary? Comment.