Importance Of Labour Regulations

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Labour regulations in India Efficient and well functioning labour market is important for India’s equitable growth. Market not only has to provide jobs to 80 million new labourers in the coming decade but also has to ensure productive and decent jobs. Further it should also lead to reduction in poverty and increase equity. Regulations pay an important role in efficient functioning of the labour market. Regulations affect the efficiency as well as the flexibility with which workers are allocated among various jobs. They also affect the ability and incentives of the firms and labour market to create job. Welfare and productivity of the workers is also affected by regulations. They also affect the earning of labourers and hence the labour supply…show more content…
Historically “employment protection” was a part of social justice; however it was enhanced in the formal sector by a set of new laws and also by cases wherein the judge referred to social justice to interpret the laws. Most of the labour regulations are a concurrent responsibility however the implementation of these regulations lie solely with the state government. Regulations for working condition Working conditions are governed by the: 1.) Factories Act,1948 2.) Industrial Employment(Standing Orders) Act, 1946( specifies the form of employment contract) 3.) Contract Labour (Regulation and Abolition) Act, 1970 4.) Apprentices Act,1961( Minor importance) Factories Act covers health, safety and welfare of workers working in factories that employ 10 or more workers and use power. However in certain states this act is extended to small scale industries. The act requires all the factories to file annual returns of their activities. It extends to the whole of India. Occupational health and safety was incorporated with amendments in…show more content…
It is applicable to all the workers below a minimum salary. It is a central act enforced by the state government expects in case of mines, railways, ports, air transport etc that lie in central sphere. Minimum Wages Act, 1948 is again a central act implemented by the state government, expect in case of mines, railways, ports, air transport etc that lie in central sphere. It specifies the duration of a working day for the ‘scheduled employment’. The minimum statutory wages are set based on the proposals made by the central and state boards (Ahsan, 2010). Regulations for social security and insurance Less than 10 percent of India’s workforce is covered under the formal social security and insurance schemes. Laws governing the social security and insurance are: 1.) Workmen’s Compensation Act,1923 2.) Employees State Insurance Act, 1948 3.) Employees Provident Funds Act,

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