Page 175 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes Self Assessment

State whether the following statements are true or false:
14. The hours of work in a day are nine in case of an adult.
15. Claims can be filed by Inspectors before the Authorities concerned in the prescribed
format.



Case Study Government Interest in the Field of
“Employee Satisfaction Schemes”

overnments all over the world had neither the time nor the interest to care for the
problems pertaining to labour arising in industry till the end of 1940’s. But the
Gneed for governmental interference arose out of the belief that government is the
custodian of industrial and economic activities.
Since the 1940s the Government of India has increased its regulations of the way employers
treat employees. The Trade Unions Act, 1926, permits workers to join unions, the Minimum
Wages Act, 1948, guarantees a minimum wages, The Factories Act,1948, ensures a safe and
healthy environment, the Workmen’s Compensation Act, 1923, offers compensation to
injured workers, the Payment of Wages Act, 1936, checks fraudulent practices, union
management relations, compensation issues, dispute settlement, etc., is quite rigorous
and elaborate. There are laws that prohibit discrimination and restrict the freedom of
employers to make HR decisions in other areas as well.
As the guardian of the economy and as a regulator of employment relations, the central
government does not seem to loosen its grip in the near future. Experts believe that the
trend towards increased government intervention will continue. They base their arguments
on the current trends in developed countries in this area in the form of employer-sponsored
health insurance schemes, greater job security, improved treatment, etc.
Others, however, are not very optimistic about governments trying to regulate the
employer-employee relations closely. Competitive pressures, deregulation of industry,
rising wages bills, increasing number of older employees needing social security protection,
inflationary pressures, heavy taxes and host of others factors having a significant bearing
on the profitability of a firm do not seem to support government’s active intervention in
industry. These experts contend that if Indian firms have to remain competitive in
international markets, they should freed from all types of control, especially those imposed
by the government.
Questions
1. Which Trend do you think will occur and why?
2. If a government regulation continues to increase, how will HR departments be
affected?

Source: http://indiankanoon.org
9.5 Summary

 The Minimum Wages Act, empowers the Government to fix minimum wages for
employees working in specified employments. It provides for review and revision of
minimum wages already fixed after suitable intervals not exceeding five years.

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