Overview of India’s Labor Code
Foreign companies looking to establish in India should
understand the country’s multiple federal labour laws and regulations as well
as locally enacted laws that are specific to the state, industry, and the size
of the firm. Since labour is a concurrent subject in India, both the Centre as
well as the states can make laws regulating labour.
Existing Labor Laws and Employment Regulations in India
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Existing Labor Laws in India |
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Enacted and enforced by the federal
government |
Enacted by the federal government,
enforced by federal and state governments |
Enacted by the federal government,
enforced by the state government |
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The Employees’ State Insurance Act, 1948 |
The Child Labor Law (Prohibition & Regulation) Act, 1986 |
The Employers Liability Act, 1938 |
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The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 |
Unorganized Workers Social Security Act, 2008 |
The Trade Unions Act, 1926 |
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Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 |
The Contract Labor (Regulations and Abolition) Act, 1970 |
The Weekly Holidays Act, 1942 |
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The Industrial Disputes Act, 1947 |
The Workmen’s Compensation Act, 1923 |
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The Industrial Employment (Standing Orders) Act, 1946 |
The Employment Exchange (Compulsory Notification of Vacancies) Act,
1959 |
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The Inner State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979 |
The Children (Pledging of Labor) Act, 1938 |
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The Labor Laws (Exemption from furnishing returns and maintaining
registers by certain establishments) Act, 1988 |
The Bonded Labor System (Abolition) Act, 1976 |
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The Maternity Benefits (Amendment) Act, 2017, and The Maternity
Benefits Act, 1961 |
The Factories Act, 1948 |
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The Payment of Gratuity Act, 1972 |
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Code on Wages Act, 2019 |
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Note: The list is not an exhaustive account of
India’s labor laws; it excludes worker and sector-specific regulations. |
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Category |
Applicable Acts |
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Conditions of Service |
Factory Act, 1948 |
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Contract Labor (Regulations and Abolition) Act, 1970 |
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Industrial Employment (Standing Orders) Act, 1946 |
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Building and Other Constructions Worker (Regulations of Employment and
Conditions of Services Act), 1996 |
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Remuneration |
Payment of Wages Act, 1936 |
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Minimum Wages Act, 1948 |
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Payment of Bonus Act, 1965 |
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Equal Remuneration Act, 1976 |
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Industrial |
Industrial Disputes Act, 1947 |
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Trade Union Act, 1926 |
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State-wise |
Shop and Establishment Acts |
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Social Security Benefits |
Payment of Gratuity Act, 1972 |
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Worker’s Compensation Act, 1923 |
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Employee State Insurance Act, 1948 |
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The Employee Provident Fund and |
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Miscellaneous Provisions Act, 1952 |