Statutory Basis
Primary Acts: Industrial Disputes Act, 1947 | Payment of Gratuity Act, 1972
Key Sections: Sec 25F (Retrenchment), Employees' Compensation Act, 1923.
Comprehensive Worker Rights
Beyond basic wages, Indian law provides specific protections for dignity, safety, and social security.
Women Workers' Rights
- Maternity Benefit: 26 weeks of paid leave for first two children (Maternity Benefit Act, 2017).
- POSH Act: Right to a workplace free from sexual harassment. Every office with 10+ employees MUST have an Internal Complaints Committee (ICC).
- Equal Pay: Right to equal remuneration for same work or work of similar nature.
Unorganized & Gig Workers
- e-Shram Registration: Access to accident insurance (₹2 Lakh) and pension schemes for construction/domestic workers.
- Code on Social Security: Extends benefits like maternity and disability cover to gig/platform workers.
Unlawful Dismissal & Retrenchment (Section 25F)
Under the Industrial Disputes Act, 1947, a "workman" (who has completed 240 days of service) cannot be terminated arbitrarily. Employers must follow "Due Process":
- Notice: 1 month's notice in writing or pay in lieu thereof.
- Compensation: 15 days of average pay for every completed year of service.
- Notice to Govt: Section 25F(c) mandates serving notice to the appropriate government.
Employees' (Workmen's) Compensation Act, 1923
If an employee is injured or dies arising out of and in the course of employment, the employer is strict liable.
Compensation Factors:
- Age of the workman (Relevant Factor).
- Monthly Wages (Subject to statutory caps).
- Nature of Injury (Death / Permanent Total Disablement).
Gratuity Rights (Act of 1972)
An employee who has completed 5 years of continuous service is eligible for Gratuity upon termination, retirement, or resignation.
*Last Drawn Salary = Basic + DA. (Divided by 26 working days).
10 Landmark Supreme Court Judgments
Vishaka vs. State of Rajasthan (1997)
Laid the foundation for the POSH Act, defining sexual harassment and mandating complaint mechanisms in workplaces.
State of Punjab vs. Jagjit Singh (2017)
Temporary/contractual employees performing the same duties as permanent employees are entitled to the same pay.
SAIL vs. National Union Waterfront Workers (2001)
If a contract is found to be a 'sham' (mere camouflage), contract laborers must be absorbed as regular employees.
Union Bank vs. C.G. Ajay Babu (2018)
Gratuity can be forfeited only for acts of violence/disorderly conduct involving moral turpitude, not for minor misconduct.
Bangalore Water Supply vs. A. Rajappa (1978)
Broadly defined 'Industry' to include hospitals, clubs, and educational institutions, bringing their employees under labour law protection.
T.K. Rangarajan vs. Govt. of Tamil Nadu (2003)
Government employees have no fundamental, statutory, or equitable right to go on strike.
MCD vs. Female Workers (Muster Roll) (2000)
Even daily wage workers are entitled to maternity benefits under the Act. It is a matter of women's dignity.
Deepali Gundu Surwase vs. Kranti Junior Adhyapak (2013)
In cases of wrongful termination, full back wages should be the rule, not the exception, if the worker was not gainfully employed elsewhere.
Workmen vs. Reptakos Brett & Co. (1991)
Wage structure must include children's education, medical needs, insurance, and social needs, not just food and shelter.
Maharashtra State Co-op Bank vs. PF Commissioner (2009)
Provident Fund dues take priority over all other debts of the employer, including secure debts to banks.
Dispute Process
1 Demand Notice
Send a formal legal notice to the employer stating the grievance and demanding reinstatement or dues.
2 Conciliation (ALC)
Raise a dispute before the Assistant Labour Commissioner. If settlement fails, the ALC issues a "Failure Report".
3 Labour Court / Tribunal
The government refers the dispute to the Labour Court for adjudication. The award is binding akin to a decree.
Checklist of Documents
- Appointment Letter / Employment Contract
- Termination Letter (if issued)
- Last drawn Salary Slips
- Bank Statements proving employment
- PF / ESI Statements
Workplace Rights Violated?
We represent workmen and unions in Labour Courts and Tribunals to secure their statutory rights.
Contact Chamber