August 1, 2021

Applicability of Labour laws in India in relation with IT industry

Labour laws are the laws that manage work and labour-related issues. Labour laws manage the disputes between the business and representative, with respect to compensation, benefits, protection of workers, and so forth. In India labour Laws are otherwise called Industrial Laws or Employment Laws because of the way that it manages the business, wages and end issues of laborers working in industries.

The Indian Information Technology organizations for an extremely lengthy timespan appreciated an exclusion from the essential principles and commitments which are forced on the organizations with respect to work of laborers. The Indian IT industries were excluded from the Industrial Employment Standing Orders Act, 1946. Yet, presently after the government had would not expand the exclusion the IT Industries simply like different industries it should follow the commitments with respect to the conditions recommended by the government and should accurately depict the government in regards to those conditions and should ensure that the laborers and workers are educated about it as well as allocated those conditions.

The Reality

Almost all the labour laws which are material to some other industry are additionally appropriate to IT Industry. This is genuine that the Factories Act, 1946, the Industrial Disputes Act, 1947 and certain State labour laws don’t make a difference to IT Industries however separated from that, the various labour laws are pertinent to IT Industries also, The state governments have been given the force that they can absolve a specific industry from the laws which are made by the Central Government in regards to the labour or modern laws under segment 14 of the Indian Employment Standard Orders Act, 1946. The state government utilizing this force do absolves the IT Industries from the Industrial Employment Standard Order Act, 1946. The IT industries do exclude their representatives under the definition of “worker” expressed in the Indian Industries Act, 1965 so as to get absolved from the liabilities which emerge after that.

The Trade Unions Act, 1926

The Trade Unions Act, 1926 was passed with the goal to make the building up and working of the worker’s organizations appropriate and orderly.

The arrangement of worker’s organizations is additionally secured under the fundamental right endorsed in segment 19(1)(c) of the Indian Constitution. There is a misguided judgment that the laborers of an IT Industry can’t frame a worker’s organization, however this is something which isn’t correct. The option to shape a union is a fundamental right which even the state can’t detract from the citizens.

The Payment of Wages Act, 1936

  • The installment of wages Act, 1936 applies to the IT Industries.
  • The Act expresses that there will be no separation with respect to the installment of wages based on position, shading, ideology, sex and so on.
  • Both people must be paid similarly for equivalent work.
  • The Act manages the illicit conclusion and non-installment or late installment of wages.
  • The Act ensures that there is no infringement of labour rights in regards to wages.

The Minimum Wages Act, 1948

  • The Minimum Wages Act, 1948 ensures that a base measure of installment is given to the laborers, who are working under the organization.
  • The Act attempts to limit the danger of exploitation of the representatives in the organization.
  • The least wages which must be given to the workers are determined and changed by the focal government now and again.

The Payment of Gratuity Act, 1972

  • The Payment of Gratuity Act, 1972 is the law which administers the gratuity which is to be paid to each representative and labourer who has worked for a time of at the very least 5 years.
  • The gratuity is given to the workers after they have left the activity by method of either renunciation or retirement or superannuation or have kicked the bucket or gotten incapacitated, which renders them unfit to proceed.
  • In an instance of death or disability, it isn’t fundamental that the individual ought to have worked for over 5 years.

The Maternity Benefit Act, 1961

The Maternity Benefit Act, 1961 was passed by the legislature with the sole thought process to ensure that the working women are not compelled to proceed with their work in any event, when they ought not as they are pregnant or are anticipating an infant.

The Act ensures that the women are given proper occasions of a half year as maternity leave and furthermore observes that no industries is attempting to segregate based on sexual orientation. The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act, 2013 The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act, 2013 has been planned after the Supreme Court on account of Vishaka v State of Rajasthan offered headings to the Executive in regards to the necessity to enact an Act that could manage the issue of sexual harassment which a lady face while working under any Institution.

Normal Problems Faced by the IT Employees, There are various issues which a worker of an IT Industry needs to confront. The issues emerge because of the fact that the IT industries are not adhering to the general guidelines which have been figured by the state and the focal governments in regards to the working hours and different gauges of business. The IT Industries will be represented by the labour laws of the nation and it isn’t being executed from a legitimate perspective. The fields wherein the labour laws of the nation are being damaged are:

The representatives are working more than the endorsed working hours however are still not getting any additional time installment.

Many call focuses and different ITES organizations are compelling the representatives to work as often as possible in night shifts without any additional installment or remuneration which is an express infringement of the law which plainly determines that an individual can’t be permitted to work in night shifts for in excess of a recommended timeframe.

If any representative attempts to speak loudly against the working hours of the organization then he is rusticated from his activity, which is an infringement of the major right of the individual. Any endeavor to frame an association is punished by expelling the representative from their activity, which is an infringement of the Fundamental Right to shape a Union under Article 19(1)(c) of the Indian Constitution. The IT and ITES industries are straightforwardly damaging the law in regards to the conditions and condition which is to be made by the industries for its workers. The IT and ITES industries attempt their best to exclude their representatives from the definition of laborers or labours which gives them their privileges. By and large the industries offer work to the laborers casually, that is, no paper or record is introduced to them which could demonstrate that they were working for the organization which gives them the opportunity to fire their representatives as and when they like. Many of the IT and ITES Industries don’t give maternity benefits to women which have been given by law to them.


The mechanical or labour laws of the nation are likewise pertinent to the IT Industries, yet not all the laws. The IT industries have been excluded from many labour laws which are appropriate to different industries. The IT industries attempt their level best to maintain a strategic distance from the commitments which are forced on them by the law, yet nobody is exempt from the rules that everyone else follows and the basic privileges of a specialist or a worker can’t be damaged regardless by anybody.

By: Bhimesh Singh (Department of law, Veer Narmad South Gujarat University)


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