If employees are less than 20 then which acts are applicable to an establishment?
From India, Bhogpur
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8From India, Bhogpur
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Dear Mahesh,
Yours is a very general question, but the ultimate answer requires a critical analysis of the concept and objective of a certain minimum number of employees in an industrial establishment/entity as a prerequisite for the application of certain labor laws.
Application of Labor Laws
Normally, labor laws aimed at protecting employment rights and resolving industrial disputes, such as the Industrial Disputes Act, 1947, and laying down conditions of employment in general establishments where non-technical activities are carried out, like shops and other commercial establishments, apply regardless of the number of employees.
Labor Laws Based on Employee Count
Labor laws providing long-term social security, such as EPF, ESI, Gratuity, etc., and statutory payments above regular wages, like bonuses, as well as laws governing industrial safety and health measures in places like factories, apply based on a minimum number of employees.
Special Labor Categories
Special labor categories like contract labor and specific employment benefits such as maternity benefits and equal remuneration regardless of gender also require a minimum number of employees for such laws to apply to industrial establishments, regardless of their primary activities.
Within the same act, like the IDA, 1947, at times, this number criterion acts as a restriction concerning certain employment aspects like layoff, retrenchment, closure, etc.
In my view, the complex nature of compliance is the primary reason for the minimum number of employees criterion in the application of labor laws.
Therefore, I urge you to determine the answer based on the type of your establishment having fewer than 20 employees.
From India, Salem
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Yours is a very general question, but the ultimate answer requires a critical analysis of the concept and objective of a certain minimum number of employees in an industrial establishment/entity as a prerequisite for the application of certain labor laws.
Application of Labor Laws
Normally, labor laws aimed at protecting employment rights and resolving industrial disputes, such as the Industrial Disputes Act, 1947, and laying down conditions of employment in general establishments where non-technical activities are carried out, like shops and other commercial establishments, apply regardless of the number of employees.
Labor Laws Based on Employee Count
Labor laws providing long-term social security, such as EPF, ESI, Gratuity, etc., and statutory payments above regular wages, like bonuses, as well as laws governing industrial safety and health measures in places like factories, apply based on a minimum number of employees.
Special Labor Categories
Special labor categories like contract labor and specific employment benefits such as maternity benefits and equal remuneration regardless of gender also require a minimum number of employees for such laws to apply to industrial establishments, regardless of their primary activities.
Within the same act, like the IDA, 1947, at times, this number criterion acts as a restriction concerning certain employment aspects like layoff, retrenchment, closure, etc.
In my view, the complex nature of compliance is the primary reason for the minimum number of employees criterion in the application of labor laws.
Therefore, I urge you to determine the answer based on the type of your establishment having fewer than 20 employees.
From India, Salem
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Amended Labor Laws.doc
Labor Laws Modified.pdf