Indian labour law
Articles 38-39, and 41-43A, however, like all rights listed in Part IV of the Constitution are not enforceable by courts, rather than creating an aspirational "duty of the State to apply these principles in making laws".
[11] The original justification for leaving such principles unenforceable by the courts was that democratically accountable institutions ought to be left with discretion, given the demands they could create on the state for funding from general taxation, although such views have since become controversial.
Article 41 creates a "right to work", which the National Rural Employment Guarantee Act 2005 attempts to put into practice.
Article 42 requires the state to "make provision for securing just and human conditions of work and for maternity relief".
Article 43 says workers should have the right to a living wage and "conditions of work ensuring a decent standard of life".
[citation needed] India's labour laws underwent a major update in the Industrial Disputes Act of 1947.
These laws mandate all aspects of employer-employee interaction, such as companies must keep 6 attendance logs, 10 different accounts for overtime wages, and file 5 types of annual returns.
The scope of labour laws extend from regulating the height of urinals in workers' washrooms to how often a work space must be lime-washed.
[14] Inspectors can examine working space anytime and declare fines for violation of any labour laws and regulations.
[18] The Latin phrase 'dies non' is being widely used by disciplinary authorities in government and industries for denoting the 'unauthorised absence' to the delinquent employees.
[21] All other manufacturing industries and large service establishments like railways, posts and telecommunications are also implementing it to minimise the incidences of unauthorised absence of workers.
The term 'industry' infuses a contractual relationship between the employer and the employee for sale of products and services which are produced through their cooperative endeavor.
In the Labour Law 2021, the government has approved an overtime payment to the employees working more than 15 minutes of scheduled shift.
The law also provides the tax withholdings the employer must deduct and pay to the central or state government before distributing the wages.
The Indian government mandates that this payment be at the rate of 15 days salary of the employee for each completed year of service subject to a maximum of ₹ 2000000.
The state government was meant to formulate the welfare system through rules produced by the National Social Security Board.
It was the view of many in the Indian Independence Movement, including Mahatma Gandhi, that workers had as much of a right to participate in management of firms as shareholders or other property owners.
However, like other rights in Part IV, this article is not directly enforceable but instead creates a duty upon state organs to implement its principles through legislation (and potentially through court cases).
[36] The Industrial Disputes Act 1947 section 3 created a right of participation in joint work councils to "provide measures for securing amity and good relations between the employer and workmen and, to that end to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters".
In National Textile Workers Union v Ramakrishnan[37] the Supreme Court, Bhagwati J giving the leading judgment, held that employees had a right to be heard in a winding up petition of a company because their interests were directly affected and their standing was not excluded by the wording of the Companies Act 1956 section 398.
According to fundamental rules (FR 17A) of the civil service of India, a period of unauthorised absence- (i) in the case of employees working in industrial establishments, during a strike which has been declared illegal under the provisions of the Industrial Disputes Act, 1947, or any other law for the time being in force; (ii) in the case of other employees as a result of action in combination or in concerted manner, such as during a strike, without any authority from, or valid reason to the satisfaction of the competent authority; shall be deemed to cause an interruption or break in the service of the employee, unless otherwise decided by the competent authority for the purpose of leave travel concession, quasi-permanency and eligibility for appearing in departmental examinations, for which a minimum period of continuous service is required.
The Transgender Persons (Protection of Rights) Act, 2019 bans discrimination on the basis of gender identity in employment.
Some of India's most controversial labour laws concern the procedures for dismissal contained in the Industrial Disputes Act 1947.
[43] Additionally, before dismissal, valid reasons must be given, and there is a wait of at least two months for government permission, before a lawful termination can take effect.
[44] The Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down.
[18] Indian laws require a company to get permission for dismissing workers with plant closing, even if it is necessary for economic reasons.
The law allows companies within SEZs to lay off redundant workers, without seeking the permission of the government, by giving a formal notice and severance pay.
[50] The West Bengal government revised its labour laws making it virtually impossible to shut down a loss-making factory.
The executive summary stated, India's labour regulations - among the most restrictive and complex in the world - have constrained the growth of the formal manufacturing sector where these laws have their widest application.
Given the country's momentum of growth, the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade.
