Labour Laws, Industrial Relations & Social Security in India (UPSC EPFO APFC Revision)
Preparing for the UPSC EPFO Exam demands a clear understanding of Labour Laws, one of the most scoring yet conceptually dense sections of the syllabus. With numerous Acts, provisions, and applicability criteria to remember, aspirants often struggle to retain key details during revision. This article provides a comprehensive and easy-to-revise summary of major Labour Laws in India —covering objectives, years of enactment, and applicability in a concise table format—helping you strengthen your conceptual clarity and boost your final-stage preparation.
.png "UPSC EPFO APFC EOAO 2025")
I. Constitutional Provisions & Guiding Principles
·
Preamble:
Justice (Social, Economic, Political), Equality (Status, Opportunity),
Fraternity (Dignity of individual).
·
Fundamental
Rights (Part III):
o Article 14: Equality before law.
o Article 16: Equality of opportunity in public
employment (incl. affirmative action).
o Article 19(1)(c): Right to form
associations/unions.
o Article 21: Protection of life & personal
liberty (incl. right to dignified livelihood, safe working conditions -
interpreted by SC).
o Article 23: Prohibition of forced labour.
o Article 24: Prohibition of employment of
children in factories etc. (below 14 years).
·
Directive
Principles of State Policy (DPSP) (Part IV):
o Article 38: State to secure a social order for
welfare of people.
o Article 39: State to direct policy towards
ensuring:
§ (a) Adequate means of livelihood.
§ (d) Equal pay for equal work for men & women.
§ (e) Health & strength of workers, children not
forced into unsuitable vocations.
§ (f) Children given opportunities for healthy
development.
o Article 41: Right to work, to education, to
public assistance in certain cases (unemployment, old age, sickness,
disablement).
o Article 42: Provision for just & humane
conditions of work, maternity relief.
o Article 43: Living wage, conditions of work
ensuring a decent standard of life, full enjoyment of leisure &
social/cultural opportunities.
o Article 43A: Participation of workers in
management of industries (through legislation).
o Article 47: Raising level of nutrition, standard
of living & public health (incl. prohibiting intoxicating drinks/drugs harmful
to health).
·
Seventh
Schedule (Distribution of Legislative Powers):
o Union List (List I): Entries related to
industrial disputes concerning Union employees, inter-state migration,
regulation of labour & safety in mines & oilfields.
o Concurrent List (List III): Major labour
subjects like Trade Unions, Industrial & Labour Disputes, Social Security
& Insurance, Employment & Unemployment, Welfare of Labour, Conditions
of Labour, Provident Funds, Employers' Liability, Workmen's Compensation. (Both
Centre & States can legislate).
II. Labour Laws -
Key Principles & Evolution
·
Rationale:
Protect workers from exploitation, ensure fair wages, safe working conditions,
social security, promote industrial peace.
·
Sources:
Legislation, Judicial Pronouncements, Collective Bargaining Agreements,
International Labour Standards.
·
Evolution:
From colonial-era restrictive laws (e.g., against strikes) to welfare-oriented
laws post-independence. Recent move towards consolidation and codification
(Labour Codes).
III. Industrial
Relations (IR)
·
Definition:
Relationship between employers and employees (individual or collective) and the
government, covering regulation of work, wages, conditions, and conflict
resolution.
·
Key Aspects:
o Collective Bargaining: Negotiation between
employers/employer associations and trade unions to determine terms of
employment.
o Trade Unions: Associations of workers formed to
protect and promote their interests.
o Industrial Disputes: Any dispute/difference
between employers & employers, or employers & workmen, or workmen &
workmen, connected with employment/non-employment/terms of
employment/conditions of labour.
o Machinery for Dispute Resolution: Conciliation,
Mediation, Arbitration, Adjudication (Labour Courts, Industrial Tribunals,
National Industrial Tribunals).
·
Tripartism:
Involvement of government, employers, and workers in policy making and dispute
resolution.
IV. Social
Security
·
Definition:
Measures providing protection to individuals against economic and social
distress stemming from various contingencies (e.g., unemployment, old age,
sickness, maternity, invalidity, death).
·
Types of
Benefits: Medical care, sickness benefit, unemployment benefit, old-age
benefit, employment injury benefit, family benefit, maternity benefit,
invalidity benefit, survivors' benefit.
·
Funding:
Contributory (employee, employer, sometimes govt) or Non-contributory (govt
funded).
·
Constitutional
Basis: DPSP (Articles 41, 42, 43, 47).
V. Major Labour
Laws in India (Pre-Codes) - Table for Revision
|
Act Name |
Year |
Key Objective / Provisions |
Applicability |
|
Factories Act |
1948 |
To
ensure safety, health, and welfare of workers in factories; regulates working
hours, leave, employment of women and young persons. |
Applies
to factories with 10 or more workers (with power) or 20 or more
(without power). |
|
Minimum Wages Act |
1948 |
To fix
and revise minimum wages for workers in scheduled employments to prevent
exploitation. |
All
scheduled employments notified by Central/State Governments. |
|
Payment of Wages Act |
1936 |
Ensures
timely payment of wages without unauthorized deductions. |
Applies
to employees drawing wages up to ₹24,000/month (as per latest amendment). |
|
Payment of Bonus Act |
1965 |
Provides
for payment of annual bonus to employees based on profits or productivity
(8.33% to 20%). |
Applies
to establishments with 20 or more employees. |
|
Payment of Gratuity Act |
1972 |
Provides
for gratuity to employees completing 5 years of continuous service. |
Applies
to establishments with 10 or more employees. |
|
Employees’ Provident Funds & Miscellaneous Provisions Act |
1952 |
Ensures
social security through PF, Pension, and Insurance Schemes. |
Applies
to establishments with 20 or more employees. |
|
Employees’ State Insurance Act (ESI) |
1948 |
Provides
medical, sickness, maternity, and other benefits to employees. |
Establishments
with 10 or more employees (some states: 20); wage ceiling
₹21,000/month. |
|
Maternity Benefit Act |
1961 |
Regulates
employment of women during maternity; provides paid leave (26 weeks) and
related benefits. |
Applies
to establishments with 10 or more employees. |
|
Equal Remuneration Act |
1976 |
Ensures
equal pay for equal work for men and women; prevents gender discrimination. |
Applies
to all establishments and employments. |
|
Industrial Disputes Act |
1947 |
Provides
mechanism for investigation and settlement of industrial disputes; regulates
retrenchment, strikes, lockouts, layoffs. |
Applies
to all industrial establishments employing 100 or more workers (for retrenchment
provisions). |
|
Trade Unions Act |
1926 |
Provides
for registration and rights of trade unions; grants immunity from civil and
criminal liabilities in certain cases. |
Applies
to all registered trade unions. |
|
Industrial Employment (Standing Orders) Act |
1946 |
Requires
employers to define and publish conditions of employment clearly (standing
orders). |
Applies
to establishments with 100 or more workers. |
|
Shops and Establishments Act (State Acts) |
Various
(varies by state) |
Regulates
working hours, rest intervals, overtime, holidays, and employment of women
and children in shops and commercial establishments. |
All
shops and commercial establishments as per state notifications. |
|
Contract Labour (Regulation & Abolition) Act |
1970 |
Regulates
employment of contract labour and aims at its abolition in certain cases. |
Applies
to establishments and contractors employing 20 or more contract workers. |
|
Inter-State Migrant Workmen (Regulation of Employment and Conditions
of Service) Act |
1979 |
Protects
rights and ensures fair conditions for inter-state migrant workers. |
Applies
to establishments employing 5 or more inter-state migrant workers. |
|
Child Labour (Prohibition & Regulation) Act |
1986 |
Prohibits
employment of children below 14 years; regulates working conditions of adolescents. |
All
establishments employing children. |
|
Apprentices Act |
1961 |
Regulates
training of apprentices to develop skilled manpower. |
Applies
to all establishments with training facilities. |
|
Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act |
1996 |
Ensures
safety, health, and welfare of construction workers. |
Establishments
employing 10 or more workers in building/construction work. |
|
Bonded Labour System (Abolition) Act |
1976 |
Abolishes
bonded labour and cancels related debts or obligations. |
All
individuals and establishments across India. |
|
Cinematograph Workers and Theatre Workers Act |
1981 |
Regulates
conditions of employment of cinema and theatre workers. |
Applies
to workers employed in cinematograph film production. |
|
Plantation Labour Act |
1951 |
Provides
welfare, housing, medical, and educational facilities for plantation workers. |
Plantations
with 10 or more hectares or 15 or more workers. |
|
Beedi and Cigar Workers (Conditions of Employment) Act |
1966 |
Regulates
employment and working conditions of beedi and cigar workers. |
All
beedi and cigar manufacturing establishments. |
|
Motor Transport Workers Act |
1961 |
Regulates
working hours, rest, and welfare of motor transport workers. |
Establishments
employing 5 or more motor transport workers. |
|
Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act |
1981 |
Protects
rights and welfare of cine industry workers. |
Applies
to workers in the cinema and film industry. |
VI. Current Labour
Codes (Introduced 2020) - Crucial for Exam
·
Objective:
Rationalize, simplify, and merge 29 existing central labour laws into 4 codes.
·
Status:
Passed by Parliament, but implementation (effectivity date) awaited as rules by
Centre and various States are yet to be notified fully.
·
Key
Changes/Features across all Codes:
o Universalization: Broader applicability,
covering more workers.
o Formalization: Incentivize formal employment.
o Ease of Doing Business: Simplify compliance for
employers.
o Fixed-Term Employment: Legalized for all
sectors.
o Increased Thresholds: For applicability of
certain provisions to promote investment and employment.
o Technology Use: Greater use of technology for
enforcement & compliance.
o Gig & Platform Workers: First-time
recognition and provision for social security.
1. The Code on Wages, 2019 (Merges 4 Acts:
Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Equal
Remuneration Act)
·
Key Points:
o Universal Definition of Wages: Standardizes
"wages" across all central labour laws. Excludes certain components
(like HRA, conveyance, gratuity beyond prescribed limits) from wage computation
for minimum wage, bonus, PF, etc. if they exceed 50% of the total remuneration.
If exclusions exceed 50%, the excess amount will be added to wages.
o Universal Minimum Wage: Introduces concept of a
'floor wage' to be fixed by the Central Govt (basis: skill, geographical
region). States cannot fix minimum wages lower than the floor wage.
o Timely Payment of Wages: Electronic transfer or
cheque for payment.
o Overtime: To be paid at twice the normal rate of
wages.
o Equal Remuneration: For work of similar nature
for all genders.
o Right to Bonus: Statutory right to bonus for
employees drawing wages up to a certain limit and who have worked for at least
30 days in an accounting year. Minimum bonus 8.33%, maximum 20%.
o Advisory Boards: Central & State Advisory
Boards on minimum wages.
2. The Industrial Relations Code, 2020 (Merges 3
Acts: Trade Unions Act, Industrial Employment (Standing Orders) Act, Industrial
Disputes Act)
·
Key Points:
o Increased Threshold for Standing Orders:
Establishments with 300 or more workers (previously 100) required to
frame standing orders. This means smaller establishments (100-299) are exempt
from formal codes of conduct, increasing employer flexibility but potentially
reducing worker protection.
o Increased Threshold for
Lay-off/Retrenchment/Closure: Establishments with 300 or more workers
(previously 100) in non-mine/plantation/factory sectors require government
permission for lay-off, retrenchment, or closure. This dilutes job security for
workers in establishments with 100-299 workers.
o Definition of 'Strike' & 'Lockout':
Mandatory 60-day notice period before strike/lockout (for all establishments,
not just public utilities as before). No strike/lockout during
conciliation/adjudication proceedings and for 60 days thereafter.
o Single Negotiating Union/Council: Provision for
recognizing a 'Sole Negotiating Union' (with 51% worker support) or a
'Negotiating Council' (with support of 20% or more workers). Aim: streamline
collective bargaining.
o Fixed-Term Employment: Legally allowed for all
sectors, providing same benefits as permanent workers.
o Reskilling Fund: Establishment of a Reskilling
Fund for retrenched workers (contribution from employer).
o New Dispute Resolution Mechanism: Focus on
conciliation, mediation. Introduction of 'Dispute Resolution Committee' (DRC)
for disputes within industrial establishments.
o Worker Redefinition: Includes working
journalists and sales promotion employees, bringing them under IR ambit.
3. The Code on Social Security, 2020 (Merges 9
Acts: ESIC, EPF, Maternity Benefit, Gratuity, WC, Unorganised Workers' Social
Security, Cine-Workers Welfare, Building & Other Construction Workers,
Employment Exchanges)
·
Key Points:
o Universalization of Social Security: Aims to
extend social security benefits to unorganised workers, gig workers, and
platform workers for the first time.
o Gig Workers & Platform Workers: Defined and
recognized. Central Govt to frame schemes for them (e.g., life & disability
insurance, health & maternity benefits, old age protection, EPF, ESI etc.),
funded by contributions from worker, employer (aggregator), or govt.
o ESI Coverage: Extended to all establishments
with 10 or more employees (wage threshold to be prescribed).
o EPFO Coverage: Extended to all establishments
with 20 or more employees. Provision for a scheme for those with less than 20
employees.
o Gratuity: Reduced service period for eligibility
for fixed-term employees (pro-rata). Also for working journalists.
o Maternity Benefit: Remains unchanged (12 weeks
for 2 children, 6 weeks for others). Extended to all women.
o Employment Exchanges: Renamed 'Career Centres'
and made mandatory for certain job matching.
o Social Security Fund: Central Govt to establish
a National Social Security Board for Unorganised Workers, Gig Workers &
Platform Workers to administer schemes.
o Data Collection: Mandatory registration of all
workers (including unorganised) on a national portal.
4. The Occupational Safety, Health and Working
Conditions Code, 2020 (Merges 13 Acts: Factories, Mines, Dock Workers,
Plantations, Contract Labour, Inter-State Migrant Workmen, Working Journalists,
Motor Transport, Sales Promotion Employees, Beedi & Cigar Workers,
Cine-Workers)
·
Key Points:
o Unified OSH Standards: Aims to provide common
occupational safety and health standards for all establishments.
o Increased Thresholds:
§ Factories: Minimum 20 workers (with power) or 40
workers (without power) for applicability (earlier 10/20).
§ Contract Labour: Applicability to
establishments/contractors employing 50 or more contract workers (earlier 20).
o Registration: Mandatory registration of all
establishments employing 10 or more workers.
o Free Annual Medical Check-up: For workers above
a certain age (to be prescribed).
o Inter-State Migrant Workers: Defined. Employer
to provide journey allowance, suitable living conditions, benefits
transferable. Mandatory registration with an online portal.
o Working Hours: Maximum 8 hours a day, weekly
off, overtime pay (twice wages).
o Women's Employment: Permitted to work all shifts
with consent and ensuring safety (e.g., crèche, transport, OSH).
o Safety Committees: Mandatory in establishments
with certain worker thresholds.
o Crèche Facility: Mandatory for establishments
with 50 or more workers (earlier 30).
o Penalties: Stricter penalties for violations,
including imprisonment.
VII.
Extra-Constitutional Provisions & Bodies
·
Indian Labour
Conference (ILC): Apex tripartite body in India dealing with labour
matters. Advises the government. (Permanent body).
·
Standing Labour
Committee (SLC): Tripartite body, discusses issues referred to it by the
ILC or Central Govt. (Permanent body).
·
Various
Tripartite Committees/Boards: Set up for specific industries or issues
(e.g., minimum wages, safety).
·
National
Commission on Labour (NCL): Two NCLs set up post-independence.
o First NCL (1966-1969, Chairman: Justice P.B.
Gajendragadkar): Reviewed existing labour laws, recommended changes.
o Second NCL (1999-2002, Chairman: Shri Ravindra
Varma): Reviewed labour laws in context of globalization, technology,
recommended consolidation. Its recommendations heavily influenced the new
Labour Codes.
VIII. Political
& Non-Political Groups, NGOs
·
Central Trade
Union Organizations (CTUOs): Federations of trade unions.
o AITUC (All India Trade Union Congress): 1920.
Oldest. Communist Party of India (CPI) affiliated.
o INTUC (Indian National Trade Union Congress):
1947. Indian National Congress affiliated. Largest.
o BMS (Bharatiya Mazdoor Sangh): 1955. RSS/BJP
affiliated.
o CITU (Centre of Indian Trade Unions): 1970.
CPI(M) affiliated.
o HMS (Hind Mazdoor Sabha): 1948.
Socialist/independent.
o UTUC, TUCC, SEWA, LPF, AIUTUC, etc.: Other
smaller CTUOs.
·
Employer
Organizations:
o FICCI (Federation of Indian Chambers of Commerce
& Industry): Est. 1927.
o CII (Confederation of Indian Industry): Est.
1895.
o ASSOCHAM (Associated Chambers of Commerce and
Industry of India): Est. 1920.
·
Non-Governmental
Organizations (NGOs):
o Work on specific labour issues: child labour (Bachpan
Bachao Andolan), bonded labour, migrant workers (ActionAid India), informal
sector workers, women workers (SEWA is also an NGO type, but also a large
union).
o Often focus on advocacy, awareness, legal aid,
rehabilitation, education, skill development.
o Example: SEWA (Self-Employed Women's Association)
- Founded by Ela Bhatt in 1972. Focuses on organizing self-employed women
workers in the informal sector, providing services like microfinance, social
security, capacity building. Affiliated to INTUC but functions independently.
IX. International
Standards & Laws (ILO)
·
International
Labour Organization (ILO):
o UN Specialized Agency: Tripartite (Govt,
Employers, Workers). Founded 1919 (Treaty of Versailles), became UN specialized
agency 1946.
o Objective: Promote social justice &
internationally recognized human & labour rights.
o Instruments:
§ Conventions: International treaties creating binding
obligations for ratifying member states.
§ Recommendations: Non-binding guidelines.
o Fundamental Principles & Rights at Work (1998
Declaration):
§ Freedom of association & effective recognition of
right to collective bargaining.
§ Elimination of all forms of forced or compulsory
labour.
§ Effective abolition of child labour.
§ Elimination of discrimination in respect of employment
& occupation.
o India & ILO:
§ Founding member of ILO.
§ Has ratified 6 of 8 Fundamental (Core) Conventions:
§ Ratified:
§ Forced Labour Convention, 1930 (No. 29)
§ Abolition of Forced Labour Convention, 1957 (No. 105)
§ Minimum Age Convention, 1973 (No. 138)
§ Worst Forms of Child Labour Convention, 1999 (No. 182)
§ Equal Remuneration Convention, 1951 (No. 100)
§ Discrimination (Employment and Occupation) Convention,
1958 (No. 111)
§ Not Ratified (Key point for UPSC!):
§ Freedom of Association and Protection of the Right to
Organise Convention, 1948 (No. 87)
§ Right to Organise and Collective Bargaining Convention,
1949 (No. 98)
§ India is committed to the principles of these
unratified conventions but cites difficulties in implementing some aspects due
to vast informal sector, government service rules, etc.
·
Other
Conventions/Recommendations (Examples India has ratified/implemented principles
of):
o Workmen's Compensation (No. 19), Night Work (Women)
(No. 4), Maternity Protection (No. 3), Seafarers' Identity Documents (No. 108),
Tripartite Consultation (No. 144), etc.
X. Recent
Developments & Current Affairs
·
Implementation
Status of Labour Codes: Still in flux. Rules need to be framed and notified
by both Central and State governments. Delays due to diverse stakeholder views
(unions, industry, states).
·
PLI
(Production-Linked Incentive) Schemes: Government initiative to boost
domestic manufacturing, which will have implications for employment generation
and labour practices.
·
Aatmanirbhar
Bharat Abhiyan: Focus on self-reliance, encouraging domestic production,
which indirectly impacts labour market and industrial relations.
·
Increased Focus
on Gig & Platform Economy: Driven by the Social Security Code.
Discussions around formalizing benefits, minimum wages, and working conditions
for these workers are ongoing.
·
Apprenticeship
Promotion Scheme: Continued emphasis on skill development through
apprenticeship.
·
E-Shram Portal:
National database for unorganised workers. Aims to register 38 crore
unorganised workers to provide them social security benefits and map them for
formal sector inclusion. Launched in August 2021.
o Key Feature: Assigns a 12-digit Unique Account
Number (UAN) to each registered unorganised worker.
o Objective: Facilitate delivery of social
security schemes, track migrant workers, provide comprehensive database for
policy formulation.
·
Migrant Worker
Focus: Post-COVID, increased attention to issues of inter-state migrant
workers, leading to provisions in OSH Code and E-Shram portal.
·
Rise of
Automation & AI: Impact on future of work, skill development, job
displacement, and creation of new job roles.
·
Gender-Specific
Labour Reforms: Continued emphasis on increasing women's participation in
the workforce, ensuring safety, and providing facilities like crèches. The OSH
Code allows women to work night shifts with consent and safeguards.
·
ILO Centenary
Declaration (2019): Focus on the future of work, human-centred approach,
digital transformation, green economy.
·
ILO India's
Decent Work Country Programme: Aims to promote decent work as a key
component of national development policies.
- Workers’ Participation in Management (WPM) (UPSC EPFO APFC EOAO Notes)
- India’s Four Labour Codes (2020) (UPSC EPFO APFC EOAO 2025)
- Industrial Relations in India: Concepts, Laws, and Evolution (UPSC EPFO APFC Notes)
- Social Security Legislation in India: (UPSC EPFO APFC Notes)
- Evolution of Social Security Measures in India: (UPSC EPFO APFC Notes)
- The Employees' Provident Fund and Miscellaneous Provisions Act, 1952: (UPSC EPFO APFC EOAO Notes)
- Employees’ State Insurance Act, 1948 — A Complete Study Guide for (UPSC EPFO APFC EOAO 2025)
- Industrial Relations, Labour Laws & Social Security in India for UPSC EPFO/APFC
Comments
Post a Comment