Indian labour laws are divided into 4 categories on the basis on enactment and enforcement. Could someone clarify as to what do the following 2 categories mean-
- Laws enacted by Central govt and followed by both Central and State
Pls help clarify what does "followed by both Central and State" mean...
does it mean it will be applicable to establishment both which are under central and under state? Or does it mean that the authority guarding the acts will be a joint one with representation both from central and state?
- Laws enacted by Central govt and followed by State
does it mean it wont be applicable to establishments under central govt but only those under state? Or does it mean that the authorities guarding the implementation of the relevant laws is will only be form state govt with no involvement of central
Thanks for your help

From India, Bangalore
The Factories Act is a central Act .But the rules under it are made by and enforced by States.Law on ESI.EPF Dock workers,Mines etc are central Acts enforced by central Govt only. Acts on holidays ,Recognition of trade unions,Professional tax,Shops & Commercial Est: etc are state Acts enforced by States only.Other Acts are enforced by both central as well as state govt.although they are central Acts.
Varghese Mathew

From India, Thiruvananthapuram
Thanks for yourreply.
Additional clarification needed- in the cases where acts can be enforced by both state and central,
1) would rules made by central be imposed on all the states or only to selected states if opposed by the states
2) what if there state and central rules are different on the same subject? I dont hav any eg but could it happen?

From India, Bangalore
Labour Law comes under the Concurrent list of the Constitution of India. Laws under this list can be enacted either by Central Govt or by the State Govt/ Union Territory or by both. That is why we have certain laws like Factories Act, Employees Provident Fund and Misc. provisions Act, Maternity Benefit Act etc enacted by the Central Govt and certain Acts like Shops and Commercial Establishments Act, Payment of Subsistence Allowance Act etc by the state Govt. There are some Acts like Payment of Gratuity Act enacted both by Central and State Govts.

A Central Act will also make the state the enforcing authority and accordingly the state will notify the Rules of enforcing the provisions of the Act.

Whether a Central Act or State Act, the applicability will be as decided in the Act. Accordingly,there will be an appropriate authority which may be either central labour ministry or the state labour ministry. For those establishments under the control of the Central govt or such private establishments or factories who function at different states, say, banks having branches all over India, the appropriate authority would be officer of central labour department and in respect of factories or establishments under the control of state govt or private companies functioning within a state, it would be the officer of the State labour department and so on.

Therefore, the word appropriate authority has very much importance in HR/IR practice and we should interpret the Act after ensuring who would be the appropriate authority in respect of our establishment.



From India, Kannur
I appreciate the explanation given by Shri Madhu. Though he had mentioned about the Payment of Gratuity Act, I may add a few more words for those who are interested to know more about Labour Laws.
The first Act on Gratuity was passed in Kerala as "Kerala Industrial Employees' Payment of Gratuity Ordinance 1969" which was made Act as "Kerala Industrial Employees' Payment of Gratuity Act 1970. Subsequently, West Bengal Employees' Payment of Compulsory Gratuity Act came as ordinance on 3.6.1971 and Act on 28.8.1971. The Central Government, in order to have a uniform Act for the country, passed the Payment of Gratuity Act 1972 and the Act came into force w.e.f. 16.9.1972.

From India, Madras
Dear Priyanka,
If on a particular subject falls under central and state laws, both laws are applicable and compliance have to be taken care. for example: A ground handling company handling airline contracts is registered under a state law under shops and establishment act but as it handles airlines which are registered under central act, this company needs to get relevant licenses under both acts.

From India, Chennai
Like Payment of Gratuity Act 1972, there is another State from which certain provisions were incorporated in the Central Act. This is only for the information of those who are interested to know more about Labour Laws.
The Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act (MRTU & PULP Act) 1971 passed in 1972 came into effect from 8th September 1975. The Schedule II of this Act is on Unfair Labour Practices on the part of employer and Schedule III is on Unfair Labour Practices on the Trade Unions.
Both these schedules, Schedule II and III were combined and incorporated in Industrial Disputes Act 1947 as Fifth Schedule "Unfair Labour Practices" with effect from 21.8.1984. The definition of ULP was made in Section 2 (ra) w.e.f. 21.8.1984 in the I D Act 1947.

From India, Madras

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