Labour Laws

Recent Amendments & Supreme Court Judgments

Important Recent Amendments

Industrial Disputes Act,1947

• As per the earlier definition of the workman , the supervisor drawing monthly salary of Rs. 1600 /- was not treated as workman.

• This provision was made in 1947, when salary of Rs. 1600/- per month was a significant amount

• The said limit was never revised for 60 years & recently Maharashtra Govt. raised this limit to Rs. 6500/- However other states continued with the same provision.

• Now Industrial Disputes Act has been amended & the salary limit of supervisor has been raised to Rs. 10,000/-

• This means any person doing supervisory function & drawing less than Rs. 10000/- can raise industrial dispute.

Industrial Disputes Act, 1947

• In cases of retrenchment , discharge , dismissal or termination the worker can directly approach the Labour Courts or Tribunals after expiry of 45 days from the date he has made application to conciliation officer for his intervention.

Payment of Gratuity Act,1972

• Under Gratuity Act the maximum Gratuity Limit has been revised to Rs. 10 lakhs w e f 24.5.2010, which was earlier 3.5 lakhs

• This was done specifically because due to recommendations of Sixth Pay Commission the wage levels of Govt employees have gone up & so their Gratuity . This amendment provided the scope to claim more.

• In last ten years this limit has been constantly revised. In last ten years from 1 lakh it was made 2.5 lakhs , then to 3.5 lakhs & now this quantum jump of Rs. 10 lakhs.

• the Ratuy an

Workmen’s Compensation Act,1923

• The workmen’s Compensation Act has been renamed as Employee Compensation Act.

• The definition of employee now includes clerical & casual employees. • The minimum Compensation Limit on no fault basis has been increased to

Rs. 20,000 & 1,40,000 ( which was Rs. 80,000 & 90,000) • For maximum Compensation limit the monthly wage limit of Rs. 4000 is

removed. Hence maximum compensation can go upto 50 % of Total Monthly wages irrespective of limits.

Workmen Compensation Act,1923

• Funeral Expenses limit extended to Rs. 5000/- ( from Rs. 2500) • The employee shall be reimbursed the actual ( full ) medical expenditure incurred

by him for treatment of injuries caused during the course of employment.

Other Amendments

• Medical Bonus under Maternity Benefit Act,1961 enhanced from 250 to Rs 2500/- & it has also empowered the Central Govt. to revise it from time to time before every 3 years subject to maximum of Rs. 20000/-

• Payment of Bonus Act ,1965 amended to enhance eligibility limit from Rs. 3500 to Rs. 10,000 & calculation ceiling from Rs. 2500 to Rs. 3500 per month. Besides this construction workers employed through Contractors are also eligible for Bonus.

• Apprentices Act, 1961 amended to provide reservation for other Backward Classes

Other Amendments

• The Plantation Labour Act ,1951 amended to provide safety & occupational health care to plantation workers

• The payment Of Wages Act,1936 amended to enhance the wage ceiling for its applicability. It is presently fixed at Rs. 10,000/- pm.

• The ESI Act ,1948 amended to improve the quality of delivery of benefits under the scheme & also to enable ESI infrastructure to be used to provide health care to workers of the unorganised sector.

Important Judgments

Recent Supreme Court Judgments

• Whether Management’s action of inviting applications for the post of Officer Trainee from its unionized staff can be treated as Unfair Labour Practice ?

• When Employer challenges the maintainability of ind. Dispute on the ground that the employee was not a workmen ,What criteria Labour Court should apply ?

Recent Judgments

• Whether the Departmental Enquiry suffers from violation of natural justice if Charge sheeted employee fails to attend the Enquiry on 3 occasions & Enquiry Officer conducts the Enquiry Ex-parte.

• What are those two tests to find out whether the contract workers are the direct employees of the Principal Employer.

Recent Judgments

• Whether the onus of establishing the victimisation or his completion of 240 days service in the Labour Court is on dismissed workman

• Whether Writ petition can be made if there is an alternate remedy available under any law.

• Whether the benefit granted to the applicant under Probation of Offenders Act makes him entitled for reinstatement in service.

Issues for Discussion

• Whether the Labour Laws in India has brought Social Justice ?• Whether Labour Laws in India are against the employers ?