Unit 3: Labour legislation

Applies to premises with 10 or more workers using power, or 20 or more without power, where a manufacturing process is carried on.

• Adults: maximum 9 hours a day and 48 hours a week; a rest interval of at least half an hour after 5 hours; weekly holiday; overtime at twice the ordinary wage.
• Children below 14 may not be employed in factories. Adolescents (15–18) need a fitness certificate and work limited hours.
• Women: traditionally not allowed between 7 pm and 6 am, now permitted in many states with safeguards and consent.

• Payment of Wages Act, 1936: ensures timely payment without unauthorised deductions. Wages paid before the 7th day (fewer than 1,000 workers) or the 10th day (others) of the following month; permitted deductions include fines, absence, damage, advances and taxes; total deductions are limited (generally 50%, or 75% for cooperative society dues).
• Minimum Wages Act, 1948: the government fixes minimum wages for scheduled employments, revised at least every five years, using a committee or notification method. (The Code on Wages, 2019 consolidates these Acts.)

• Employees' Provident Funds and Miscellaneous Provisions Act, 1952: applies to establishments with 20 or more employees. Employer and employee each contribute 12% of basic wages and DA; part of the employer's share goes to the Employees' Pension Scheme; also covers the deposit-linked insurance scheme (EDLI).
• Payment of Bonus Act, 1965: applies to establishments with 20 or more employees; employees earning up to ₹21,000 a month who worked at least 30 days are eligible. Minimum bonus 8.33% and maximum 20% of wages (calculated on a ceiling of ₹7,000 or the minimum wage, whichever is higher).