1. Provident Fund (PF) – EPF Act, 1952
The Employees’ Provident Fund is a long-term savings scheme for employees, backed by the government. Both employer and employee contribute 12% of the employee’s salary each month. The fund accumulates interest and can be withdrawn at retirement or during emergencies like housing, illness, or unemployment.
2. Employee State Insurance (ESI) – ESI Act, 1948
ESI provides social security and health insurance to employees earning below a certain wage limit. Benefits include full medical care, maternity leave, disability benefits, and even funeral expenses. Employers and employees both contribute to the ESI fund, ensuring protection for low-wage workers and their families.
3. Payment of Gratuity Act, 1972
This law provides monetary benefits to employees who have served a company for five years or more. Gratuity is calculated based on last drawn salary and years of service. It helps employees feel financially secure upon retirement, resignation, or in case of death/disability.
4. Payment of Bonus Act, 1965
Eligible employees in organizations with 20+ workers receive annual bonuses, even if the business incurs minimal profits. Bonus percentage ranges from 8.33% to 20% of salary. It fosters employee motivation and ensures a fair share in company growth.
5. The Minimum Wages Act, 1948
This Act mandates that no worker is paid below the prescribed minimum wage set by the central or state government. It considers region, type of work, skill level, and cost of living—ensuring basic livelihood and protecting against unfair labor practices.
6. The Contract Labour (Regulation and Abolition) Act, 1970
Aimed at safeguarding the rights of contract workers, this Act mandates registration of contractors and licensing. It ensures contract laborers receive fair wages, proper working hours, clean drinking water, canteens, first aid, and proper shelter, where applicable.
7. The Shops and Establishments Act
This Act varies by state but broadly regulates the opening/closing hours, weekly holidays, overtime, employee leaves, working conditions, and record maintenance for all commercial establishments like offices, shops, restaurants, etc. It promotes decent working environments.
8. The Maternity Benefit Act, 1961
Women employees are entitled to 26 weeks of paid maternity leave, nursing breaks, and job protection during maternity. It encourages safe motherhood and helps women maintain a work-life balance without the fear of losing their job during pregnancy.
9. Sexual Harassment of Women at Workplace (POSH Act), 2013
All workplaces must have a proper system to prevent and address complaints of sexual harassment. An Internal Committee (IC) is mandatory in organizations with 10+ employees. The Act ensures dignity, safety, and gender equality at the workplace.
10. Labour Welfare Fund (LWF)
States like Maharashtra, Gujarat, Tamil Nadu, etc., mandate this fund to improve the lives of workers through medical aid, housing assistance, skill development, educational scholarships for workers’ children, and recreational facilities. Contribution is done monthly or annually.
11. Payment of Wages Act, 1936
Ensures that salaries are paid on time—usually by the 7th or 10th of every month—and without unauthorized deductions. It applies to all industrial and non-industrial workers below a wage limit. Employers must maintain transparency in wage payments.
12. Equal Remuneration Act, 1976
No gender-based discrimination is allowed in hiring, training, or payment. Men and women doing the same or similar work must be paid equally. This Act promotes fairness and equal opportunity in the labor market.
13. Industrial Disputes Act, 1947
This Act provides a legal framework to settle disputes between employers and employees through conciliation, arbitration, or labor courts. It deals with layoffs, retrenchment, strikes, lockouts, and ensures industrial peace and smooth business functioning.
14. Factories Act, 1948
Designed to protect factory workers, this law covers working hours (maximum 48 hrs/week), safety protocols, ventilation, machinery safeguards, cleanliness, restrooms, canteens, and medical check-ups. It restricts child labor and regulates employment of women in hazardous roles.