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Learning Objectives


      Outline       the        legalities              governing

    recruitment and selection in India.

      Explain the Equal Remuneration Act.

      Explain the ESIC Act




                                                               1
Chapter Eleven   Indian Laws for Recruitment & Selection
Structure


1)   The Legal View.

2)   Equal Remuneration Act in India.

3)   Employee State Insurance Act.

4)   Law and the Indian MNC.

5)   Summary.



                                                           2
Chapter Eleven   Indian Laws for Recruitment & Selection
11.1 The Legal View
Laws   governing  recruitment                     in       private
   sectors are a few.
The       Child    Labour     [prohibition  and
      Regulation] Act prohibits employment of
      children   in   certain   employments and
      regulates   their    working    hours and
      conditions.
Employment       Exchanges       [Compulsory
   Notification of Vacancies] Act requires
   public sector and those private sector
   employers who employ 25 or more persons
   to   notify   all   vacancies   to  their
   prescribed Employment Exchange.


                                                                 3
Chapter Eleven   Indian Laws for Recruitment & Selection
11.1 The Legal View
Apprentices Act , 1961; the Interstate
   Migrant Workmen Regulation of Employment
   and Conditions of Service Act, 1979; the
   factories Act, 1948; and the Mines Act,
   1952 are some other Acts dealing with
   recruitment.
Unlike UK and USA, India does not have
   comprehensive    legislations   regarding
   equal employment opportunities. Indian
   employers are expected to have a fair and
   non-discriminatory recruitment policy.


                                                           4
Chapter Eleven   Indian Laws for Recruitment & Selection
11.2 Equal Remuneration Act in India
The Convention concerning equal remuneration
   for men and women workers for work of
   equal value was adopted by the general
   conference of the International Labour
   Organization in 1951. India is one of the
   parties to this Convention.
Article 39[d] of the constitution of India
   provides that the state shall , in
   particular, direct its policy towards
   securing that there is equal pay for
   equal work for both men and women.

                                                           5
Chapter Eleven   Indian Laws for Recruitment & Selection
11.2 Equal Remuneration Act in India
Equal    remuneration Act in India was enacted
   to     prevent discrimination among workers
   on    grounds of gender.
The       Act   aims          at         prohibition        of
      discrimination        during        recruitment      and
      wage fixing.
The     section   [5]  of   this   Act    forbids
      discrimination during recruitment and the
      section   4[1]  of   the   Act   makes   it
      mandatory to pay equal wages for women
      for the same work done.

                                                             6
Chapter Eleven   Indian Laws for Recruitment & Selection
11.3 Employee State Insurance Act
Employee State Insurance Act, 1948 is a
   piece of social welfare legislation and
   applies to establishments notified by the
   Government.
The promulgation of the Act envisaged an
   integrated need based social insurance
   scheme that would protect the interest of
   workers in unforeseen events such as
   sickness,    maternity,   temporary    or
   permanent   physical disability , death
   due to employment, injury resulting in
   loss of wages or earning capacity.

                                                           7
Chapter Eleven   Indian Laws for Recruitment & Selection
11.3 Employee State Insurance Act
The Section 46 of the Act offers six social
   benefits:-
       ☺ Medical benefit
       ☺ Sickness benefit.
             - extended sickness benefit.
             - enhanced sickness benefit.
       ☺ Maternity benefit.
       ☺ Disablement benefit.
             - temporary disablement benefit.
             - permanent disablement benefit.
       ☺ Dependants’ benefits.
       ☺ Funeral Expenses.


                                                           8
Chapter Eleven   Indian Laws for Recruitment & Selection
11.3 Employee State Insurance Act
In   the ESI scheme, the contributions are
     related to the paying capacity as a fxed
     % of the workers’ wages, whereas, the
     workers are provided social security
     benefits according to individual needs
     without distinction.

In addition the scheme also provides other
   need based benefits like rehabilitation
   allowance, vocational rehabilitation and
   unemployment allowance under Rajiv Gandhi
   Shramik Kalyan Yojana.


                                                           9
Chapter Eleven   Indian Laws for Recruitment & Selection
11.4 Law and Indian MNC
More and more Indian Organizations are
   recruiting a pool of talent. It is
   imperative that the recruiter is aware of
   the legal issues surrounding recruitment
   in country of operation.
USA, UK have very stringent laws and what
   may be acceptable in India may be a case
   of lawsuit in those countries. There are
   legal   pitfalls   in    job   ads,   job
   application forms, interview questions.
It is essential that selection team is
   educated of all these pitfalls to avoid
   expensive law suits.

                                                           10
Chapter Eleven   Indian Laws for Recruitment & Selection
11.5 Summary


    Largely, it is clear that the recruitment
    policies      in     the      private         sector   are
    largely unregulated and the employer has
    to ensure that the recruitment policies
    are in compliance with the laws and are
    fair and non-discriminatory.



                                                             11
Chapter Eleven   Indian Laws for Recruitment & Selection
This brings us to the end of
our current session # 11!
      Next we move to session # 12 dealing with

                            “Role of Induction Process in
                              Recruitment & Selection”.
                                                Good Luck!
                                                           12
Chapter Eleven   Indian Laws for Recruitment & Selection
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Indian Laws for Recruitment and Selection

  • 1. Learning Objectives Outline the legalities governing recruitment and selection in India. Explain the Equal Remuneration Act. Explain the ESIC Act 1 Chapter Eleven Indian Laws for Recruitment & Selection
  • 2. Structure 1) The Legal View. 2) Equal Remuneration Act in India. 3) Employee State Insurance Act. 4) Law and the Indian MNC. 5) Summary. 2 Chapter Eleven Indian Laws for Recruitment & Selection
  • 3. 11.1 The Legal View Laws governing recruitment in private sectors are a few. The Child Labour [prohibition and Regulation] Act prohibits employment of children in certain employments and regulates their working hours and conditions. Employment Exchanges [Compulsory Notification of Vacancies] Act requires public sector and those private sector employers who employ 25 or more persons to notify all vacancies to their prescribed Employment Exchange. 3 Chapter Eleven Indian Laws for Recruitment & Selection
  • 4. 11.1 The Legal View Apprentices Act , 1961; the Interstate Migrant Workmen Regulation of Employment and Conditions of Service Act, 1979; the factories Act, 1948; and the Mines Act, 1952 are some other Acts dealing with recruitment. Unlike UK and USA, India does not have comprehensive legislations regarding equal employment opportunities. Indian employers are expected to have a fair and non-discriminatory recruitment policy. 4 Chapter Eleven Indian Laws for Recruitment & Selection
  • 5. 11.2 Equal Remuneration Act in India The Convention concerning equal remuneration for men and women workers for work of equal value was adopted by the general conference of the International Labour Organization in 1951. India is one of the parties to this Convention. Article 39[d] of the constitution of India provides that the state shall , in particular, direct its policy towards securing that there is equal pay for equal work for both men and women. 5 Chapter Eleven Indian Laws for Recruitment & Selection
  • 6. 11.2 Equal Remuneration Act in India Equal remuneration Act in India was enacted to prevent discrimination among workers on grounds of gender. The Act aims at prohibition of discrimination during recruitment and wage fixing. The section [5] of this Act forbids discrimination during recruitment and the section 4[1] of the Act makes it mandatory to pay equal wages for women for the same work done. 6 Chapter Eleven Indian Laws for Recruitment & Selection
  • 7. 11.3 Employee State Insurance Act Employee State Insurance Act, 1948 is a piece of social welfare legislation and applies to establishments notified by the Government. The promulgation of the Act envisaged an integrated need based social insurance scheme that would protect the interest of workers in unforeseen events such as sickness, maternity, temporary or permanent physical disability , death due to employment, injury resulting in loss of wages or earning capacity. 7 Chapter Eleven Indian Laws for Recruitment & Selection
  • 8. 11.3 Employee State Insurance Act The Section 46 of the Act offers six social benefits:- ☺ Medical benefit ☺ Sickness benefit. - extended sickness benefit. - enhanced sickness benefit. ☺ Maternity benefit. ☺ Disablement benefit. - temporary disablement benefit. - permanent disablement benefit. ☺ Dependants’ benefits. ☺ Funeral Expenses. 8 Chapter Eleven Indian Laws for Recruitment & Selection
  • 9. 11.3 Employee State Insurance Act In the ESI scheme, the contributions are related to the paying capacity as a fxed % of the workers’ wages, whereas, the workers are provided social security benefits according to individual needs without distinction. In addition the scheme also provides other need based benefits like rehabilitation allowance, vocational rehabilitation and unemployment allowance under Rajiv Gandhi Shramik Kalyan Yojana. 9 Chapter Eleven Indian Laws for Recruitment & Selection
  • 10. 11.4 Law and Indian MNC More and more Indian Organizations are recruiting a pool of talent. It is imperative that the recruiter is aware of the legal issues surrounding recruitment in country of operation. USA, UK have very stringent laws and what may be acceptable in India may be a case of lawsuit in those countries. There are legal pitfalls in job ads, job application forms, interview questions. It is essential that selection team is educated of all these pitfalls to avoid expensive law suits. 10 Chapter Eleven Indian Laws for Recruitment & Selection
  • 11. 11.5 Summary Largely, it is clear that the recruitment policies in the private sector are largely unregulated and the employer has to ensure that the recruitment policies are in compliance with the laws and are fair and non-discriminatory. 11 Chapter Eleven Indian Laws for Recruitment & Selection
  • 12. This brings us to the end of our current session # 11! Next we move to session # 12 dealing with “Role of Induction Process in Recruitment & Selection”. Good Luck! 12 Chapter Eleven Indian Laws for Recruitment & Selection
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