Labour Law

Labour Rights in India — What Every Worker Must Know

4 min read

Updated: February 2024

Disclaimer: This guide is for general educational purposes only and is not legal advice. Laws may vary by state and change over time. Consult a qualified lawyer for advice specific to your situation.

Labour Rights in India — Complete Worker's Guide

Your Core Labour Rights

Every worker in India — whether in a factory, office, shop, or as a contractual employee — has rights under various central labour laws. Here are the most important ones:

1. Minimum Wage

Under the Minimum Wages Act, 1948, every employer must pay at least the minimum wage as notified by the Central or State Government for your category of work.

  • Minimum wages are fixed by skill category (unskilled, semi-skilled, skilled, highly skilled)
  • Rates differ by state and industry
  • Check your state's current minimum wage at labour.gov.in

If you are being paid less than minimum wage, you can file a complaint with the Labour Department.

2. Working Hours

Under the Factories Act and Shops and Establishments Act:

  • Maximum 9 hours per day and 48 hours per week
  • Overtime must be paid at twice the normal wage rate
  • Mandatory rest interval of at least 30 minutes after 5 hours of work
  • 1 day off for every 6 days worked

3. Provident Fund (PF)

Under the Employees' Provident Fund Act, 1952:

  • Applicable to organizations with 20+ employees
  • Employee contributes 12% of basic salary
  • Employer also contributes 12%
  • You can check your PF balance on the EPFO portal: epfindia.gov.in

If your employer deducts PF but doesn't deposit it — this is a criminal offense. Complain to EPFO.

4. Gratuity

Under the Payment of Gratuity Act, 1972:

  • Applicable after 5 years of continuous service
  • Formula: (Last drawn salary × 15 × Years of service) ÷ 26
  • Maximum gratuity: ₹20 lakh (tax-free up to this limit)
  • Must be paid within 30 days of leaving

5. Leave Entitlements

Type of Leave Entitlement
Earned/Privilege Leave 1 day per 20 days worked (factories)
Sick Leave Varies by state (typically 7–12 days)
Casual Leave 8–12 days (varies by state/sector)
Maternity Leave 26 weeks (first 2 children)
Paternity Leave 15 days (central govt; private varies)

6. Maternity Benefits

Under the Maternity Benefit Act, 1961 (amended 2017):

  • 26 weeks paid maternity leave for first two children
  • 12 weeks for third child onwards
  • 8 weeks for adoption/commissioning mothers
  • Applicable to organizations with 10+ employees
  • Cannot be fired during maternity leave

7. Protection from Wrongful Termination

Under the Industrial Disputes Act, 1947:

  • Companies with 100+ workers must get government permission before retrenchment
  • Notice period must be served or notice pay given
  • Retrenchment compensation: 15 days pay for every completed year of service
  • You cannot be fired for union activity or raising a genuine grievance

8. Sexual Harassment at Workplace (POSH)

Under the Sexual Harassment of Women at Workplace Act, 2013:

  • Every organization with 10+ employees must have an Internal Complaints Committee (ICC)
  • Complaints must be resolved within 90 days
  • If no ICC exists, complain to the Local Complaints Committee at the District level

How to File a Labour Complaint

Step 1: Try Internal Resolution

Raise the issue in writing with your HR department. Keep a copy.

Step 2: File with Labour Department

Visit your District Labour Office (every district has one). Complaints can also be filed online on your state's Labour Department portal.

Step 3: Labour Court

For disputes involving termination, wage recovery, or PF — approach the Labour Court in your district. You can represent yourself.

Step 4: Helplines

  • Central Labour Helpline: 14567 (Mon–Fri)
  • EPFO Helpline: 1800-118-005 (Toll Free)
  • ESI Helpline: 1800-11-2526 (Toll Free)

Documents to Keep Safe

  • Appointment letter / offer letter
  • Salary slips (last 3 months minimum)
  • PF account number and UAN
  • Any written communication with employer
  • ID proof provided to employer

Important: Know Your UAN

Your Universal Account Number (UAN) links all your PF accounts. Activate it at unifiedportal-mem.epfindia.gov.in. You can:

  • Check PF balance
  • Download PF passbook
  • Transfer PF when changing jobs
  • Withdraw PF online

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About This Guide

Category

Labour Law

Reading Time

4 min read

Language

English

Updated

Feb 2024

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