Labour Laws in Delhi
In this blog, we will discuss the following points of labour laws in Delhi.
Introduction
The government of the Labour Law & Employment Department regulates the functioning of establishments that address the legal rights of employer and employee that maintain the equality and relationship between employee and employer. In this blog, you will see the different acts, rules, and compliances to follow for both employees and employers. There are various laws, acts, applicability, and compliances in Delhi. Such as The Contract Labour (Regulation and Abolition) Act, 1970; Delhi Payment of Wages Rules, 1937, The Factories Act, 1948, The Plantations Labour Act, 1951; and others. That we will see below in detail.
Let’s discuss the various laws of Delhi.
Labour Laws, applicability, and Compliance in Delhi
Before starting a new business, or else you have already started, you must comply with Delhi’s labour law norms.
The Payment of Wages Act, 1936, and Mines Rules, 1956
Employers must pay their employees a regular wage without making any unauthorised deductions. This ensures fairness and provides a mechanism for addressing any instances of injustice.
Applicability:
- This law applies to all workers, regardless of whether they are employed directly or through contractors, in factories, specified industries, or other establishments.
- It is applicable all over the states.
Compliances –
- Form IV – Submission of Annual Return
- Fixation and payment of wages to employees should be at least 1 month.
- Establishments that have less than 1000 shall pay compensations by the 7th of each month, and in other cases, employers shall make wage payments before the 10th of each month.
- An annual certificate stating the wages were paid under the Act is required.
- For employers
- Monthly records of paid or payable wages.
- Register of fines made by employers towards employees/wages
- Register the deduction for any damages or loss.
- Register of advances made, if any.
The Employees State Insurance Act, 1948 & Rules 1950
This Act provides certain benefits to the employees and their families in case of skinlessness, injury, and other related matters.
Applicability – It applies to all establishments, such as private and government sectors, where 10 or more employees are working and carrying on a manufacturing process with the aid of power. And 20 or more employees are working without the aid of power and earning wages 21,000 or less.
The Contract Labour (Regulation & Abolition)Act, 1970 & Rules, 1971
An act regulates contract labour employment in certain establishments and provides for abolition in certain circumstances and other matters related to it.
Applicability –
- It applies to establishments where 20 or more workers, art employed or were employed on any day of the preceding 12 months as contract labour.
Delhi Shop and Establishment Act, 1954
The Act is enacted to protect the employee’s rights. It regulates the payment of wages, closed days, holidays, maternity benefits & leave, leaves, record maintenance, rules of children, working conditions, and others.
Applicability applies to all shops and commercial establishments in areas the Delhi government advises.
Leave and working conditions for Shops and Establishments.
Entitlement
Max Carry Forward Days
Casual Leave (CL)
12 days including CL and SL
1 day after 1 month of continuous service
NA
Sick Leave (SL)
12 days including CL and SL
1 day after 1 month of continuous service
NA
Earned (EL) / Privilege Leave
15 Days after 12 months of continuous work and 5 days after 4 months of continuous service
45 Days of leave
Working Hours
Normal hours
9 hours a day and 48 hours a week
Break time
After 5 hours of work at least half an hour of break
Max Overtime
125 hours in 3 months
Spread over Hours
10.5 in a day
Twice the ordinary rate of wages
Compliances –
- Form A – Statement under section 5
- Form B – Register of Establishment
- Form C – Registration for Certificate of Establishment
- Form D – Notice of Change
- Form E – Notice of close day or a change in close day
- Form G – Register of Employment & Remuneration
- Form H – Register of Employment & Remuneration of Employees
- Form I – Register of Leave
- Form J – Notice of Holiday under section 17
- Form K – Notice under Section 33
The Equal Remuneration Act, 1976
An act provides equal remuneration to male and female employees for their work. It prevents the determination against women, sex, colour on ground level, and other related employment matters.
Applicability – It applies all over India.
The Delhi Maternity Benefit Act, 1961
An act provides equal remuneration to male and female employees for their work. It prevents the determination against women, sex, colour on ground level, and other related employment matters.
Click here, to know more about the Maternity benefits act.
Applicability – It is applicable all over India.
The Minimum Wages Act, 1948 and Rules. 1950
It provides the fixation on the rate of wages in particular employment for employees that are included in the schedule.
Applicability – It applies to all industries and employment. And there is a provision to fix working hours and wages for overtime.
The Payment of Bonus Act, 1965 & Rules 1975
This Act provides a bonus to the employees employed in the establishment and others. Click on the Payment of bonus act to know more detail.
Applicability – It applies to establishments where 20 or more employees are employed or any during the accounting period.
- This applies to individuals hired for any work in exchange for payment, whether manual, supervisory, managerial, administrative, technical, or clerical, and earn a salary or wage of no more than Rs. 21,000/- per month. The terms of employment may be expressed or implied.
Compliances –
Form A – Computation of the Allocable Surplus
Form B – Set on and off of Allocable Surplus
Form C – Bonus Paid Statement
Form D – Annual Return Bonus Paid to the Employees
The Factories Act, 1948
This Act enacts employment safety, health, and welfare of workers at the workplace and prevents misbehaving exploitation or any accident during employment.
Applicability – It applies to all factories and employment with or without the aid of power.
Compliance –
- Form 21 – Annual return to the chief inspector
- Form 22 – Annual return sent to the chief inspector of the area.
- Register of workers, including child and adult labourers.
- Register of health
- Register for Leave with wages, compensatory holiday
- Register for accidents and dangerous occurrences.
Professional Tax Act, 1975
PT is levied for all salaried employed persons, professionals, and individuals in the state. To know more about PT rate, click here.
Delhi Labour Welfare Fund
This Act provides the constitution of funds for financing the activities to promote labour welfare in the state.
To know more details about the Labour Welfare Fund, click here.
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 & Rules 1980
The Act regulates the condition of service of inter-state labourers. And protect the workers whose services are requisitioned outside of their native.
Applicability – It applies to all establishments and contractors who have employed at least 5 years or more inter-state migrant workers.
Compliances –
- Form 1 – Registration certificate
- Register of wages
- Register of contactor
The state of Delhi has other applicable acts.
- The Mines Act, 1952 and Rules 1955
- Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 & Central Rules, 1998
- The Plantation Labour Act, 1951
- The Sales Promotion Employees (Conditions of Service) Act, 1976 & Rules 1976
- The Working Journalists and Other Newspaper Employees and Miscellaneous Provisions Act, 1955 and Rules 1957
We have come to the end of our discussion on Labour law in Delhi. Let’s know your other questions and opinions on this topic. Mention below the comment box.