Labor rights are an integral part of the socioeconomic development of all countries in the world. To protect these rights, each nation has passed certain laws that address the legal benefits and restrictions of workers and their organizations. These laws are commonly known as employment laws.

In simple words, labor law is a legal structure or administrative provision that deals with the rights and restrictions imposed on workers and their organizations by the government. It generally covers employee demands for better working conditions, the right to form unions or to work independently without joining unions, and other security rights. Similarly, it also covers the demands of employers to maintain control over: the use of power by workers’ organizations, labor costs, expensive health and safety requirements of workers, etc.

Indian Labor Law:

Like other nations, labor law in India also covers the same fundamental labor rights that are required to maintain a harmonious relationship between employees, employers, and unions. However, there are certain modifications made in the laws based on the Indian culture, society and constitution.

All commercial establishments in the country are required to implement the labor laws of the Central and State Government to be recognized as legally authorized organizations. Some of the essential promulgations of the Central Government are the following:

• The Employees’ Provident Fund Act, 1952

• The Employees’ State Insurance Act, 1948

• The Minimum Wage Law, 1948

• The Indentured Labor (Regulation and Abolition) Act 1970

• The Bond Payment Act, 1965

• The Maternity Benefits Act, 1961

• The Wage Payment Act, 1936

• The Equal Pay Act, 1976

Businesses have to adhere to the above provisions and other related laws for the proper functioning of their business. Any business that does not follow the rules listed in these laws is subject to sanctions by the Government of India. It should be noted that organizations with large operations across the country find it difficult to keep track of each enactment. Therefore, they may forget to follow one or sometimes many rules of the given enactments.

Therefore, it is recommended that organizations hire an employment law consultant or subcontract their legal work related to workers’ rights to a consultancy. These consultancies offer comprehensive services, which typically include –

• Activities related to registration and licensing required under labor laws,

• Calculation of the periodic liability,

• Record keeping and legal records,

• Periodic regulatory reporting and documentation,

• Attend regular regulatory inspections and

• Other allied services.

In short, the Indian Labor Law has all the necessary provisions to maintain a healthy relationship between the workers and their organizations as long as these legal provisions are strictly adhered to by both parties.