Labour & Service

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Terms and Conditions of Employment

1.1 What are the main sources of employment law?

Matters related to employment in India are primarily governed by the Constitution of India,
specific laws framed by the Central and State governments, municipal laws, collective and
individual agreements, as well as judicial precedents. These laws cover an array of issues, which
may be general or specific in nature. Based on the objective of the enactment, some key
legislation has been classified in the table below:

Employment conditions
Legislation	Purpose/objective
Factories Act,1948	To provide for the health, safety, welfare, working hours and leave of workers in factories(manufacturing units)
Shops & Establishment Acts (State-wise)	To regulate payment of wages, terms of service,holidays, leaves, work conditions, hours of work, overtime, etc. for people employed in shops and commercial establishments (such as hotels, restaurants, bakeries, societies (run for gain), etc.).
Contract Labour(Regulation & Abolition) Act, 1970	To regulate the engagement of contractor and contract labour by the principal employer.
Industrial Employment Standing Order Act, 1946	Any establishment employing 100 or more workmen is required to regulate and codify conditions of service and obtain certification from the concerned regulatory authority.
Building and other construction workers (Regulation of employment and conditions of service) Act,1996	For the benefit of workers engaged in building andconstruction activities to regulate matters related to their safety, health and welfare and any other matters incidental thereto.
Industrial relations
Industrial Disputes Act, 1947 (“IDA”)	To provide a machinery for regulating the rights of the employees and settlement of industrial disputes in a peaceful and harmonious manner, along with provisions for strikes, layoffs, unfair labour practices, lockouts and closure of an establishment, etc
Trade Unions Act, 1926 (“Trade Unions Act”)	To establish the rights,duties and obligations of trade unions and facilitate their registration.
Payment of Wages Act, 1936	It regulates the payment of wages to certain classes of persons employed in the industry and provides for the responsibility for payment of wages, fixation of wage period, time and mode of payment of wages and
Trade Unions Act, 1926 (“Trade Unions Act”)	To establish the rights,duties and obligations of trade unions and facilitate their registration.

The constitutional protections, as well as the Bail Reform Act (a federal statute), give a defendant the right to request lower bail when the amount initially set by the court is too high to pay. A defendant can request a hearing to seek a bail reduction.

At the hearing, the defendant can argue that the initial bail set by the court is so high that it is effectively a denial of bail and amounts to pretrial detention in jail, even though the defendant is not a flight risk or a threat to the public. (18 USC § 3142 (c)(2).) Although the court must take this argument into consideration, it is not required to set bail at a level that the defendant can easily pay. Courts can set bail high enough “to induce a defendant to go to great lengths to raise the funds without violating” the constitution or the Bail Reform Act. (U.S. v. Szot, 768 F.2d 159 (7thCir., 1985).) As long as the court’s actual motive is not to just force the defendant to rot in jail awaiting trial, the court can set bail at any level it can justify.

Once a defendant informs the court, through a bail reduction request or otherwise, that she cannot afford the bail set, the court must specify the reason(s) that the amount set is “an indispensable” condition of release from jail. (U.S. v. Montececon-Zayas, 949 F.2d 548 (1st Cir. 1991).) The court must set out its rationale in writing. (Fed. Rule of App. Proced. 9.)

The Supreme Court has noted that bail and the refusal to set bail also implicate the right to due process found in the Fourteenth and Fifth Amendments to the Constitution.

Just as the defendant has the right to seek a lower bail, the prosecution can request that the court set a higher level of bail based on the risk that the defendant will flee from the jurisdiction or inflict harm upon a victim or other members of the public. (18 USC § 3142 (f).) And, the court may hold a hearing to inquire into the source of bail funds that it suspects may be illegal (proceeds from drug sales, for example). Bail is only one of the conditions that a court may impose in order to grant release of a defendant from jail pending trial. Other conditions include travel restrictions, relinquishing a passport, drug testing, electronic monitoring devices (ankle bracelets), house arrest, supervision and reporting during release, and others.

The landmark Labour Code on Wages Act (henceforth referred to as the Wage Code), enacted in August 2019, has been celebrated for codifying India’s four wage related laws, namely the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Equal Remuneration Act, 1976; and the Payment of Bonus Act, 1965. However, a closer examination of the Wage Code reveals that it has omitted or diluted critical provisions of previous legislations. As India grapples with a wage crisis, which affects the lives and livelihoods of its significant informal labour population, the ability of the Wage Code to protect wages warrants an urgent discussion.

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