Guide to Employment Law in India 1
The labour policy in India is influenced by international conventions, recommendations of national and international conference, constitutional rights, recommendations made by commissions, labour unions etc. There is generally a protectionist approach, in favour of employee, in statutes governing the labour and employment. Labour is a subject in the concurrent list under the Constitution of India therefore the Central and State Governments are empowered to enact legislation in this regard subject to specific matters being reserved for the centre.
This scenario has resulted in a large number of statutes regulating different aspects of labour right from wages, compensation, resolution of disputes, social security, occupational safety etc. There are over 50 Central Government Enacted Acts and over 200 State Government enacted statutes. Ministry of Labour and Employment is responsible for formulation and administration of the rules and regulations and laws relating to labour and employment. Familiarising with the employment laws and regulations will be immensely useful for a foreigner setting up an enterprise in India, or any employer employee for that matter. The following article is a bird’s-eye view of some of the important employment laws that will be of significance to employers and employees.