Labour Laws in Jharkhand
14 minutes read

Labour Laws in Jharkhand



Labour laws, also referred to as employment laws, are legal regulations that govern the functioning of establishments and protect the legal rights, restrictions, and working conditions of labourers. It plays an important role in maintaining a healthy relationship between employers and employees and ensuring equality in the workplace. In this post, you will get detailed information about various acts and rules related to labour law compliance in Jharkhand. Some of the acts and rules that cover the law, applicability, and compliance in Jharkhand include the Shop and Establishment Act, Payment of Wages Act, Employees State Insurance Act, and the Employee Provident Fund Act, and others. In the following sections, you will find all the necessary details regarding labour laws in Jharkhand.

Labour laws, Compliances, Applicability in Jharkhand

If you plan to start a business in Jharkhand, complying with the state’s labour laws is crucial. These laws are categorised under specific acts.  

Factories Act, 1948

It regulates the working conditions of employees in the factory, which covers important aspects such as health, safety, welfare, and working hours. Employers are required to comply with the regulations regarding maintaining a clean work environment, proper ventilation, and providing necessary facilities for workers. Applicability – It applies to all factories in the state.

Compliance –

  • Section 6-7 – Getting approval, licensing and registration of factories from the government.
  • 48 hrs. Overtime pay is required for extra work. Adequate breaks and weekly holidays must be provided.
  • Factories must have safety measures in place, including ventilation, temperature control, and cleanliness, to maintain a healthy workplace.
  • Employers must provide drinking water, a canteen, first aid, restrooms, and clothes storage facilities.
  • The Act stresses maintaining occupational health standards, including health check-ups for workers exposed to hazards.
  • Employers must take safety measures for dangerous operations and provide annual leave with wages.
  • The Act regulates the employment of young persons and requires employers to maintain records and notify authorities of accidents.
  • Annual returns on workforce, accidents, and relevant info must be submitted, and safety officers may be mandatory.

Minimum Wages Act, 1948

It regulates the minimum rates of wages for workers in certain employments in the state of Jharkhand. An act aims to protect the rights and interests of workers, as well as to prevent exploitation and poverty. To get to know more details about minimum wages, click here. Applicability – This act applies to the scheduled employments, which are the employments specified in the schedule of the act.  

The Payment of Bonus Act 1965

This act regulates the payment of bonuses to employees in certain establishments. An act aims to provide a minimum bonus to eligible employees, as well as to link the bonus with the productivity and profitability of the establishments. Applicability – It is applicable to the state of Jharkhand, which has its own rules and regulations under the act. The rules cover various aspects of bonus payment, such as calculation of allocable surplus, set on and set off, eligibility, disqualification, time limit, mode of payment, registers and records, returns and notices, and inspection and adjudication.


  • To set up a factory, obtain prior permission from the state government or the chief inspector, register the factory with the prescribed authority and obtain a license.
  • Bonuses range from 8.33% to 20% of employees’ salary based on surplus and previous set on and set off.
  • Maintain records of surplus, set on/off, bonuses, accidents, and diseases. Display minimum wages and work periods conspicuously.
  • Filing annual returns in Form D to the inspector must be completed within 30 days of paying the bonus.

Payment of Gratuity Act 1972

This act regulates the payment of gratuity to eligible employees in certain establishments in Jharkhand. It aims to link the gratuity with the productivity and profitability of the establishments while providing a minimum gratuity to the eligible employees. Applicability – The act applies to establishments that employ ten or more persons, such as factories, mines, oilfields, plantations, ports, railway companies, shops, and other establishments.


  • The employers must maintain records of gratuity payments and file annual returns with the prescribed authority.

Payment of Wages Act 1936

This act regulates the payment of wages to employees in certain establishments in the state of Jharkhand, which aims to protect the rights and interests of employees, as well as to prevent exploitation and delay in wages. Applicability – The act applies to establishments with 10+ employees, ex-, factories, mines, oilfields, plantations, ports, railways, and shops.


  • Paying employees their wages within one month of the prescribed wage period.
  • Making deductions from employees’ wages should only be done for specific purposes and within legal limits. Deductions cannot exceed 75% of wages in a wage period.
  • Maintaining registers and records of employee wages and details and filing annual returns to authorities.

Shops and Establishments Act

This act sets rules for the working conditions and rights of employees in commercial establishments in Jharkhand. It covers registration, health, safety, welfare, working hours, holidays, leave, wages, termination, and dispute resolution. It also outlines duties, penalties, and remedies. Applicability – The act applies to all shops and commercial establishments in the state, except those exempted by the state government. Compliances
  • Employers must register their business within 90 days of starting by applying Form I to the inspecting officer and paying the prescribed fee.
  • The employers must maintain the health, cleanliness, and safety of the premises and the employees.
  • Employers must allow authorities to inspect, investigate and adjudicate matters related to the act and rules.
  • The employers must regulate the working hours, holidays, and leave of the employees.
Leave types Entitlement Maximum carry forward
SL (sick leave) 12 days (full-time on pay) NA
EL (Earned privileged leave) 18 days after 240 days of continuous work 45
CL (Casula Leave) 12 days (half pay yearly) NA
Working hrs
Maximum (OT) Over Time 6 in any week and 150 hrs yearly
Interval After 5 hrs of work, at least half an hour
Normal 9 hrs a day & 48 hrs in a week
Spreadover 12 hrs in day
OT wages Twice ordinary rate of wages

Contract Labour (Regulation and Abolition) Act 1970

It regulates the employment of certain establishments and industries in the state of Jharkhand. The act aims to protect the rights and interests of contract workers, as well as to prevent exploitation and abuse by the contractors and the principal employers. Applicability – The act applies to establishments and contractors that employ twenty or more contract workers in any day of the preceding twelve months.

Compliance –

  • Employers must register their establishment and obtain contractor licenses within 90 days of starting their business by applying in Form I and paying the fee.
  • Contract employers must provide welfare and health services to workers, including canteens, restrooms, first aid, and water.
  • Employers must allow state-appointed authorities to inspect and adjudicate matters related to the act and comply with their decisions.

Equal Remuneration Act 1976

The aim is to ensure that men and women receive equal pay for doing the same job and to prevent any form of discrimination based on gender in the workplace. Applicability – It applies to all establishments and employments in Jharkhand, except those that the government exempts.


  • The establishment of advisory committees to promote employment opportunities for women.
  • Employers must provide equal pay for equal work regardless of gender.

Professional Tax Act

This act imposes a tax on the income of individuals who are engaged in any profession, trade, calling, or employment in the state of Jharkhand. Click here to learn more details about PT. Applicability – The tax applies to both employees and employers of various establishments.  

Maternity Benefits Act, 1961

An act regulates the employment of women in certain establishments for certain periods before and after childbirth and provides them with maternity benefits and other benefits. Applicability – It applies to every establishment, factory, mine, plantation, shop, or any other establishment employing ten or more persons. To get to know more about the details of the Maternity Benefits Act, click here.


The law provides medical benefits to employees for sickness, maternity, employment injury, and related matters. Applicability – This Act is applicable to all factories and establishments in India having a a minimum number of 20 employees. Check out the more details about ESI.

Employee Provident Funds & Miscellaneous Provisions Act (EPF), 1952

This act provides social security and welfare benefits for retirement, death, disablement, or other contingencies for workers. Check out the EPF in detail. Applicability – The act applies to all factories and establishments with 20+ employees in the last 12 months, with exceptions.


  • The registration and payment of contributions for factories and establishments employing 10 or more persons.
  • Members and their dependents are eligible for benefits like provident fund, pension, insurance, and gratuity.
  This is the end of our discussion on labour laws in Jharkhand. Let us know your other questions and opinions on this topic. Mention below the comment box.

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