The document outlines Indian laws governing recruitment and selection. It explains the Equal Remuneration Act, which prohibits pay discrimination based on gender and mandates equal pay for equal work. It also explains the Employee State Insurance Act, which provides social insurance benefits like medical care, sickness benefits, maternity benefits, and disability or dependent benefits for employees. Finally, it notes that while recruitment policies in the private sector are largely unregulated in India, employers must ensure non-discriminatory and fair policies in compliance with Indian law.

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

13. “Like” us on Facebook:
p // /
http://www.facebook.com/welearnindia
“Follow” us on Twitter:
http://twitter.com/WeLearnIndia
http://twitter com/WeLearnIndia
Watch informative videos on Youtube:
http://www.youtube.com/WelingkarDLP