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Human Resources & Employment & Labour

Human Resources (HR) play a very important role in any organization. Their role is to maintain the relationship between employer and employee. They also maintain law and order in the organization. For HR too it is important that he is aware of all possible legal regulations.

Awareness as to Legal Provisions

Human resource department must be aware of all the laws. There are HR laws which are applicable from the top position to the subordinate of a company. Following are various laws and provisions that are applicable to any organization.

Indian Constitution

Indian Constitution under Article 14 guarantees equal opportunity to its citizens with respect to Employment. Any discrimination is prohibited in employment. Article 24 prohibits employment of child below 14 years.

Employment Exchange Act 1959

This act makes it mandatory for the private sector where more than 25 employees work to inform vacancy. These are some of the common labor laws in India.

Payment of Wages Act, 1936

This act governs the salary paid to the employee. There can be bargain between HR and employee regarding salary. It is the duty of the organization to make sure that employees are getting their salaries before due dates. Industrial standards govern the salaries. On the termination of any employment, the salary for that month has to be paid. In the Act deductions as to loses, or loans etc, are also mentioned.

The Employees Provident Fund

Provident fund is the social security of employees. The employees get benefits as to housing, education, pension etc. Every person working in the company is eligible to this. The main purpose is to ensure security for elder people.

Workmen Compensation

Under the Workmen Compensation Act, the employee and his family, gets full financial security in case of any accident or injury during his service. The compensation is given under the Act in such case. The employee is liable to get the compensation even if he works across the sea. The employer can face criminal action in case of failure to pay the compensation.


There is a provision of bonus to be paid to employee. Irrespective of what work he does. If the salary of any employee is less than 21000/- Rs he is eligible to get the bonus. If must have worked for more than 30 days in that company. He can claim the bonus within a period of one year.


Gratuity is a part of salary paid as gratitude. It is paid towards the course of employment. It is a retirement benefit. The employee is entitled to receive gratuity. As per the Act the maximum gratuity amount should not exceed Rs. 3, 50000/-

Working Atmosphere

Any employer is required to have a healthy working atmosphere. This is provided under the Factories Act. This act was passed to protect workers' rights and interests. The employer is responsible for ensuring adequate drainage and ventilation. Any operating environment must have a fire extinguisher. The weekly operating hours are reduced to 48 hours. Sections 11 to 20 deal with wellness measures, and Sections 21 to 50 deal with staff protection and benefits. Employees should be granted a weekly off.

Maternity Benefit

The primary goal of this act is to uphold the integrity of motherhood. When a pregnant woman has worked with the organization for at least 80 days, she is eligible for this provision. When she returns to work, she is required by statute to do only light work for 10 weeks. If the company does not offer this service, he will be incarcerated.

Protection from sexual abuse

HR is the first one to receive reports of sexual abuse. HR is responsible for ensuring a healthy working place for women. He must build strategies to teach employers on the problems of sexual abuse in the workplace. HR should declare the abuse to be misconduct and take harsh measures against the victim.

Industrial relations

The Industrial Disputes Act of 1947 was enacted to bring reconciliation between the employer and the employee. It addresses issues such as employer lockouts, staff protests, layoffs, and retrenchment. It states that before dismissing a worker, the employer must have 6 weeks' notice specifying the reason for the termination.


HR responsibly tracks the performance of employee. Employees who perform well are recognized and honored with appraisal.HR also intimates and work towards improving performance of any employee. HR appreciates as well as encourages employees to perform and excel in their work. The Supreme Court has observed:

"It is therefore imperative that the adverse entries awarded to the government servant must be communicated to him within a reasonable period to afford him opportunity to improve his work and conduct and also to make representation in the event of the entity of being unjustified".


For the smooth functioning of any company it is important that the relationship between employer and employee is smooth. It is HR who plays the bridge between maintaining the cordial relation between employer and employee.

All the laws and regulations cover the aspect which has to be taken care of to give overall protection to the employees. At the same times few rights are being conferred on the employees.

All this ensures a healthy work environment. Ultimately this is in long term contributes to the growth of the country.