MATERNITY BENEFIT ACT, 1961 THE INDUSTRIAL DISPUTES ACT, 1947¹

One of India’s most important labor laws, the Industrial Disputes Act, 1947 (Also referred to as the ID Act), was created to govern the interaction between employers and workers, especially when it comes to industrial disputes. By offering a framework for dispute settlement, guaranteeing equitable treatment of employees, and creating rights for both employers and employees in the event of an industrial conflict, the Act seeks to advance industrial peace and concord.

RIGHT OF WORKERS & EMPLOYEES UNDER THE SAID ACT

“WORKMAN”

The term “workman” has been defined u/s 2(s) of the Act as “Any person (whether employed directly or through an agency) employed in an industry to do any manual, unskilled, skilled, technical, clerical, or supervisory work, and who is not involved in managerial, administrative, or executive functions.”

The word “workman” is specified under the Industrial Disputes Act, 1947 (IDA) to identify the group of workers who are eligible for specific rights and protections under the Act. The Act describes workers’ rights regarding employment, pay, and termination and offers certain procedures for settling conflicts affecting them.

• RIGHT TO FAIR TREATMENT IN CASE OF TERMINATION OR DISMISSAL

Section 25F, 25G, and 25H of the Act provide workers with certain protections against arbitrary dismissal, retrenchment, or layoff.

Termination/Dismissal: When firing or dismissing an employee, employers are required to follow procedural fairness. An employee must receive enough notice or compensation in place of notice if their employer plans to fire them.

Retrenchment: If an employer wants to fire a permanent employee, they must adhere to the Act’s requirements, which include providing the employee with compensation, including severance pay depending on the length of employment.

Reinstatement:If a worker’s termination or retrenchment is determined to be unwarranted, they may be eligible for back pay and reinstatement.

• RIGHT TO NOTICE OF LAYOFF AND COMPENSATION

Layoff means temporarily or permanently dismissing or terminating or discharging a worker’s job primarily because there is not enough work for the said worker to do. Employers are obligated to compensate employees who are laid off, or temporarily removed from the workforce for business-related reasons such as decreased demand. Section 25 C of the ID Act, 1947 guarantees that laid-off workers get compensated according to their average salary for the three months prior to their termination. Layoff compensation is typically paid when the layoff lasts for more than 45 days.

• RIGHT TO NOTICE OF RETRENCHMENT

Retrenchment is again one kind of termination of the workers by the employer solely for business reasons, may it be for cost cutting or restructuring or down-sizing. It is the right of an employer to perform the act, however they are also bound to abide by certain rules and regulations before retrenching any worker. According to Section 25F of the Act, a worker who has worked for a minimum of a year cannot be laid off permanently or retrenched without:

• Prior notice
• Severance Compensation which includes payment equivalent to 15 days’ average wages for each completed year of service.
• If a company employs 100 or more workers, it must seek government approval before retrenching employees.

• RIGHT TO ENGAGE IN INDUSTRIAL DISPUTE RESOLUTION

Workers have the right to engage in the settlement of industrial disputes through numerous methods:

Conciliation: In the event of a disagreement, the government may designate a conciliator to try to mediate and settle the matter out of court.

Adjudication: Should conciliation prove unsuccessful, the matter may be brought before a labor court or industrial tribunal for formal adjudication, when a decision will be rendered.

Arbitration: Disputes may occasionally be sent to arbitration, where a final, legally binding ruling is rendered by an arbiter.

• RIGHT TO FORM AND JOIN TRADE UNIONS

Article 19 of the COI guarantees every citizen have the fundamental right to form trade unions and practice any occupation as an employment, which is also upheld by the ID Act, 1947. The very notion of a “Trade Union” refers to the organizations that is constituted by a group of certain workers who are represented in case of labour disputes and in terms of collective bargaining. Additionally, the Act shields employees against discrimination or abuse by employers as a result of their participation in trade union activities.

• RIGHT TO RECEIVE COMPENSATION FOR INJURY OR ACCIDENT

If an employee is hurt at work, they have the right to pursue compensation under the IDA. However, other laws, such as the Employees’ Compensation Act of 1923², also address the specific provisions pertaining to injury compensation.

If an employee is hurt as a result of their employer’s carelessness, they are entitled to workers’ compensation, which covers medical costs, lost income, and rehabilitation.

THE MINIMUM WAGES ACT, 1948³

One of India’s most important labor laws, the Minimum Wages Act of 1948 (hereinafter referred , was created to guarantee that workers, particularly those employed in unorganized sectors, were paid a minimum rate for their job. The purpose of the Act is to provide fair recompense for workers’ labor by safeguarding them against exploitation and ensuring that their earnings do not fall below the minimal level.

Minimum Wages refer to The smallest sum of money that an employer is legally obligated to pay employees for their job is known as the minimum wage. These salaries ought to cover enough of the necessities of life, such as clothes, food, and housing.

• RIGHT TO RECEIVE MINIMUM WAGES

Right to Fair Compensation: All employees in certain industries are entitled to at least the government-mandated minimum pay under the Minimum Wages Act. Both skilled and unskilled workers are affected by this. The enforcement of the Minimum Wages Act is mostly the responsibility of the government. To keep an eye on whether companies are adhering to minimum wage regulations, inspectors are assigned.

• RIGHT TO CLAIM ARREAR OF WAGES

Employees have the right to pursue arrears of unpaid wages if their employers fail to pay them the minimum wage. To collect the arrears, they might go to the labor court or industrial tribunal. Employees who were underpaid during that time can also request back pay. Workers may also be entitled to reimbursement from their employers for any time that they are unable to pay minimum wages.

MATERNITY BENEFIT ACT, 1961⁴

The Maternity Benefit Act, 1961 (hereinafter referred to as The Act) is a statute in India that offers maternity leave, maternity benefits, and other associated measures to female employees. A woman employee is entitled to 12 weeks of maternity leave (84 days) in case of childbirth. The leave can be availed 6 weeks before the expected delivery date and the remaining 6 weeks can be taken after childbirth. In case of miscarriage or medical termination of pregnancy, a woman is entitled to 6 weeks of paid leave.

• MATERNITY BENEFIT

Maternity benefits are provided to the employee at the rate of her average daily income for the duration of her absence from work during the maternity leave period. The benefits are paid by the employer, and the amount of benefit is determined based on her wages (basic pay and dearness allowance). According to the laws, theemployer is required to provide the woman employee with maternity benefits throughout her absence.

• RIGHT TO NURSE THE CHILD

This is a right can be taken by a woman employee twice during the working hours of her work until the child complete 15 months as per Section 11 of the Act. However, it is to be noted that these nursing breaks are exclusive of regular breaks such as lunch breaks or tea breaks.

• RIGHT TO NOT-BEING DISMISSED DURING MATERNITY LEAVE

Section 12 of the Act mandates that the employer cannot dismiss/ terminate or discharge an employee who would be presently on her maternity leave. The woman on maternity leave is entitled to return to her previous job or a similar job with the same sort of wages and benefits. For those women who opt for adoption or surrogacy, an amendment was made in the Act during the year 2017, are entitled to 12 weeks of maternity leave.

VARIOUS PM SCHEMES FOR MATERNITY BENEFIT

• Pradhan Mantri Matritva Vandana Yojana (PMMVY)⁵ is a government program designed to give pregnant and nursing mothers financial support so they may eat healthily and get enough sleep both before and after giving birth. Under the scheme, eligible pregnant women and lactating mothers receive a cash incentive of ₹5,000 in three installments, provided they fulfill certain conditions like- women must have attended 18 years of age, must be a first-time beneficiary, must be registered with the scheme and receive antenatal and post- natal care as per the guidelines.
• National Maternity Benefit Scheme (NMBS). This program is intended for women who work in the unorganized sector and are not covered by the Maternity Benefit Act of 1961, such as domestic helpers, agricultural laborers, etc. Under this scheme, women are eligible for ₹6,000 (this amount might vary slightly across states) as a one-time cash benefit for pregnancy and childbirth.

AUTHOR: Debashrita Manik. LLM, KIIT SCHOOL OF LAW

¹ https://www.indiacode.nic.in/bitstream/123456789/17112/1/the_industrial_disputes_act.pdf

² https://labour.gov.in/sites/default/files/ec_act.pdf

³ https://clc.gov.in/clc/sites/default/files/MinimumWagesact.pdf

⁴ https://www.indiacode.nic.in/bitstream/123456789/17115/1/maternity_benefit.pdf

⁵ https://wcd.delhi.gov.in/wcd/pradhan-mantri-matru-vandana-yojana-pmmvy