Understanding Labor Law Compliance: What Needs Filing with Central vs. State Government?

Greetings,

Can anybody explain the role of the central government and state governments in labor law compliance? Which filings need to be done with the central government, and which with the state government?

Legislative Powers in India

In the Constitution of India, there are three lists that define the power to legislate. The first is the Central subjects, where only the center can legislate, and states can't legislate. The second is State subjects, where only states can legislate and not the center. The third is the Concurrent list, in which both the center and states can legislate.

Labor Legislation

Labor is on the Concurrent list, so both the center and states have the power to legislate. Where the center has legislated, you must comply with central legislation, and where the state has legislated, you must comply with state legislation requirements. For example, the Maharashtra House Rent Allowance or the Maha Mathadi Act, etc.

I hope this clears your doubt.

As per our constitution, LABOUR is in the concurrent list, i.e., both the central and state governments can legislate on the subject. The relevant list is as follows:



However, we have a convention where the labour subject is discussed in the TRIPARTITE FORUM, i.e., the Indian Labour Conference. Subsequently, necessary legislations are introduced in the parliament. Such acts will be applicable to the whole of India. But the state can amend relevant sections and is also empowered to make rules for the implementation of the act. In every act, the appropriate government is properly defined. Depending on the type of organization, it can easily be clarified. You need to specify the issue, know the relevant act, and find the appropriate government. Please discuss with a couple of people.

Roles of Labor Officers

There are two labor officers: (1) State Government Labor Officer and (2) Labor Enforcement Officer (Central). The Labor Enforcement Officer (Central) can visit government sector industries such as refineries, IOCL, BPCL, HPCL, GAIL, etc.

Compliance in Central Government

Compliance in the central government is the same; only the form numbers are different, such as:
- Muster Roll (Form-V).
- Register of Wages (Form-X).
- Register of Overtime (Form-IV).
- Register of Fines (Form-I).
- Register of Deductions (Form-II).
- Wage Slip (Form-XI).
- Abstract of Minimum Wage Act.

Regards,
Ashok More

Mr. Patel is right. Central acts will be brief, and state acts will provide detailed regulations. For example, there should be a sufficient number of toilets in a factory as per the Factories Act of 1948 (central). Specifically, there should be toilets for every 30 workers and urinals for every 50 workers as per the Tamil Nadu Factories Rules of 1950 (state). Therefore, states can amend and expand these rules without breaching central regulations.

To clear this point, please refer to the definition of "Appropriate government" in each labor law applicable to your factory or establishment. This will be in Section 2 of any act.

Regards,
Manoj Prasd

Dear Ashok, please clarify if an establishment is registered under the Factories Act, can the State Government Labour Officer have jurisdiction to inspect the factory? Or does the Chief Labour Inspector under the factory have jurisdiction? Kindly reply.

Regards,
Azim