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Indian Labor Laws

India is a member of the International Labor Organization. The following are some of the most important labor laws that companies need to be aware of when doing business with India.

Industrial Disputes Act, 1947
This Act governs labor issues and prohibits unfair labor practices.
Maternity Benefit Act, 1961
This law provides leave and other benefits to qualifying women both during and after pregnancy.
Payment of Bonus Act, 1965
This requires the payment of an annual bonus to qualifying workers even if the company is not profitable in the given year.
Payment of Gratuity Act, 1972
This law requires the payment of a gratuity to qualifying workers upon retirement, resignation or disability. Gratuity is paid at a statutory minimum rate.
Workmen’s Compensation Act, 1923
Like the U.S. Act, India’s Workmen’s Comp Act requires the payment of a statutory minimum amount upon the injury or death of a qualifying employee when the injury or death is suffered during the course of employment.
Industrial Employment (Standing Orders) Act, 1946
This Act requires employers to clearly define the conditions of employment to qualifying employees.
Minimum Wages Act, 1948
According to this law, qualifying employees must be a paid minimum wage. The amount is determined by the Central Government.
Payment of Wages Act, 1936
This Act proscribes the terms of payment of wages for qualifying low income employees.
Employees Provident Fund and Misc. Provisions Act, 1952
This Act creates a system of compulsory savings for qualifying employees.

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