Workplace Discrimination Laws and Employee Rights

Published on 15th April 2025

AUTHORED BY: SHATAJ UNNISA.I
VIDYAVRDHAKA LAW COLLEGE

Abstract

Workplace discrimination in India remains a widespread problem, impacting employees’ rights and harming organizational integrity. This article looks at the legal frameworks in place to address such discrimination, emphasizing major legislation and landmark case laws that have formed the current landscape. The Indian Constitution, namely Articles 14, 15, and 16, ensures equality and outlaws discrimination based on religion, race, caste, gender, or place of birth. Specific legislation, such as the Rights of Persons with Disabilities Act of 2016 and the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act of 2013[1], target disability discrimination and sexual harassment, respectively. Landmark decisions, such as Vishaka v. State of Rajasthan (1997), have helped define and enforce antidiscrimination laws. Despite these legal requirements, obstacles remain in implementation and enforcement, necessitating ongoing efforts to build equal opportunities at work.

Introduction

Discrimination in the workplace happens when employees or job seekers are treated unfairly because of their race, color, religion, gender, national origin, age, disability, or genetics. These discriminatory behaviors violate not only fundamental human rights but also established legal standards intended to promote fairness and equality in the workplace. Such discrimination has a significant impact on affected persons, resulting in psychological anguish, decreased job satisfaction, and lower productivity. Furthermore, firms that condone discriminatory behavior risk facing legal consequences, reputational loss, and a drop in general worker morale. Understanding the growth of workplace discrimination laws and the rights they provide to employees is critical for employees as well as employers. This understanding enables employees to recognize and assert their rights in the face of unfair treatment. Employers, on the other side, must be knowledgeable about these regulatory frameworks to assure compliance, develop inclusive workplaces, and reduce potential liabilities. By investigating the many types of discrimination and the related legal protections, stakeholders may work together to create environments that value diversity and promote equality.

Legal Frameworks Addressing Workplace Discrimination

  1. The Equal Remuneration Act, 1976: The Equal Remuneration Act, enacted on February 11, 1976, was a key legislative step taken by the Indian Parliament to address female salary inequities. The Act requires companies to pay men and women equally for the same or similar labor, to eliminate pay discrimination. This legislation is consistent with Article 39 of the Indian Constitution, which requires the state to ensure equal pay for equal work for men and women. The Act covers the entire country and applies to a wide variety of institutions, including factories, mines, plantations, and government bodies. Employers are not permitted to discriminate against women during recruiting or in terms of work conditions unless the employment of women is restricted or prohibited by law. To guarantee compliance, the Act enables competent government bodies to designate enforcement officers and requires employers to maintain registers and records. Despite its extensive framework, obstacles remain in its execution, with salary discrepancies being visible in numerous industries. Continuous efforts are required to increase awareness and successfully enforce the Act’s requirements.
  2. The Rights of Persons with Disabilities Act, 2016: To conform to the UN Convention on the Rights of Persons with Disabilities, the 1995 Act was superseded by the RPwD Act, 2016, which went into effect on April 19, 2017. The Act was passed on December 28, 2016. It increased the number of recognized disabilities from seven to twenty-one, encompassing multiple disabilities, autism, and cerebral palsy. The Act stresses accessibility in public areas and services and requires a 4% reservation for people with disabilities in government employment. To promote inclusion and equitable opportunity for all, it also calls for the creation of Central and State Advisory Boards to supervise implementation.
  3. The Sexual Harassment of Women at Workplace Act, 2013: To address sexual harassment in the workplace in India, the POSH Act, 2013 was passed in accordance with the Supreme Court’s Vishaka principles. Organizations with ten or more workers are required to set up an Internal Complaints Committee (ICC) to promptly and privately handle complaints. In cases where the employer is the target of the complaint or for smaller businesses, a Local Complaints Committee (LCC) is established at the district level. Companies must also hold workshops and awareness campaigns regarding the provisions of the Act. Notwithstanding its thorough framework, issues still exist, particularly in the unorganized sector, as a result of underreporting and ignorance, calling for constant efforts to guarantee secure and welcoming work environments for women.
  4. The Minimum Wages Act: The Minimum Wages Act of 1948 was a pioneering regulation in India’s labor legal framework, aimed at preventing worker exploitation by ensuring they are paid enough to cover their necessities. The Act enabled both the federal and state governments to set and enforce minimum wage rates for occupations, considering factors such as the cost of living and industry-specific conditions. It required frequent pay rate updates to reflect economic changes and inflation. Employers were banned from paying salaries below the set minimum rates, and the Act included penalties for noncompliance. While the Act established the framework for wage control, it only applied to scheduled employment, leaving a sizable segment of the workforce unprotected. This limitation was removed by the following implementation of the Code on Wages in 2019, which extended coverage to all employees across sectors.
  5. The Payment of Wages Act: The Payment of Wages Act of 1936 was enacted to control the timely payment of wages to employees and to prohibit unlawful deductions. It required that wages be paid on time, without undue delay, and set specified deadlines based on the size and type of the institution. The Act also outlined permitted deductions, such as those for fines, absence from duty, or employer provided accommodations, to ensure that employees received their full pay without arbitrary cutbacks. To address grievances, the Act established a process for employees to bring claims for improper deductions or payment delays. With the implementation of the Code on Wages in 2019, the provisions of the Payment of Wages Act were subsumed, to create a more streamlined and comprehensive wage regulation framework that covers all aspects of wage payment and related rights.
  6. Constitutional Provisions: The Indian Constitution contains several clauses that uphold social justice and safeguard workers’ rights. By guaranteeing the “Right to Equality,” which includes the prohibition of discrimination in the workplace, Article 14 makes sure that every citizen is treated equally before the law. This is further supported by Article 16, which forbids discrimination in public employment based on race, caste, sex, religion, descent, place of birth, or domicile. Additionally, the state is directed by the Directive Principles of State Policy, specifically Articles 38 and 39, to provide a social order for the advancement of welfare and to work for equal compensation for equal labor for men and women. India’s labor laws and policies have been greatly influenced by these constitutional provisions, which have guided legislative initiatives such as the adoption of the Code on Wages, 2019, to guarantee equitable compensation and working conditions for all employees.

Forms of Workplace Discrimination

  1. Race, color, and Religious Discrimination: To ensure equitable treatment in the workplace, Articles 15 and 16 of the Indian Constitution forbid discrimination based on race, color, or religion. Even with these legal safeguards, bias still occurs, which emphasizes the necessity of strong anti-discrimination guidelines, frequent cultural sensitivity training, and transparent reporting procedures inside businesses.
  2. Sex and Gender Discrimination: In India, sex and gender discrimination in the workplace is illegal under Articles 15 and 16 of the Constitution, which guarantees equality and prohibits sex-based discrimination. However, biases still exist, showing up as unequal pay, biased hiring, limited opportunities for advancement, and harassment. To address these issues, fair pay structures, impartial recruitment procedures, thorough anti-harassment policies, and frequent training programs to promote gender inclusion and respect in the workplace are necessary.
  3. Age and Disability Discrimination: The Rights of Persons with Disabilities Act, 2016 in India requires reasonable workplace accommodations and forbids discrimination against people with disabilities. However, there is no explicit law against age discrimination, which results in prejudice in hiring and promotions. Addressing these issues requires merit-based evaluations, inclusive policies, and fostering a culture that values contributions from all employees, regardless of age or disability.

Employee Rights

  1. Employment Agreement: According to the Indian Contract Act of 1872, workers in India are entitled to a formal employment contract that outlines their duties, pay, and working conditions. The 1936 Payment of Wages Act guarantees prompt payment without unlawful deductions. The Equal Remuneration Act of 1976 forbids salary discrimination based on gender and requires equal compensation for equal effort. Eligible workers who make up to Rs. 10,000 per month are entitled to a minimum bonus of 8.33% of their pay under the Payment of Bonus Act, 1965. Employers are required by the Minimum Wages Act of 1948 to pay at least the government-set minimum wage, with rates changing according to geography and skill level.
  2. Right to Health, Safety and Discrimination: Employers are required by the Factories Act of 1948 to provide safe working conditions, which include adequate ventilation, hygienic conditions, and the required safety precautions in hazardous workplaces. In addition to guaranteeing equality, Articles 14, 15, and 16 of the Indian Constitution forbid discrimination in the workplace on the grounds of race, religion, caste, sex, or place of birth. There may be legal repercussions for breaking these rules.
  3. Leave Entitlements and Termination Notice: To encourage work-life balance, Indian labor regulations grant workers a variety of leave benefits, such as maternity, sick, privilege, and casual leave. According to the Industrial Disputes Act of 1947 and state-specific laws, termination procedures mandate that employers give notice periods, usually between 30 and 90 days. Legal action may result from an unfair termination without enough notice.
  4. Employee Benefits and Workplace Protections: Indian labor regulations provide workers with financial stability and a secure workplace. Employees with five years of continuous employment are entitled to a one-time gratuity upon resignation, retirement, or termination under the Payment of Gratuity Act, 1972, except for cases of misbehavior. A contributory provident fund that is accessible at retirement or under certain conditions, such as medical emergencies, is also required by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 mandates that companies with ten or more workers set up an Internal Complaints Committee (ICC) to handle complaints, define different types of harassment and specify violations.

Case  

Vishaka & Ors. V. State of Rajasthan (1997) 

Facts: The case was brought about by the vicious gang rape of Bhanwari Devi[2], a Rajasthani social worker who was assaulted while trying to stop a child marriage. The lack of legal procedures to address workplace violence and sexual harassment against women was brought to light by this occurrence.

Issue: The Court’s main concerns were the dearth of appropriate legal remedies available to women who experience sexual harassment at work and the requirement to create binding rules to safeguard their fundamental rights under Articles 14, 19, and 21 of the Indian Constitution.

Judgment: The Supreme Court of India created the Vishaka Guidelines in 1997 after realizing that there was no law addressing sexual harassment in the workplace. These instructions defined sexual harassment precisely, delineated preventive measures, and required the establishment of complaint procedures in workplaces. The Court made it clear that these rules would be in effect until the relevant laws were passed. 2013 saw the passage of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act because of this judicial intervention.

Conclusion 

A social commitment to promoting fair employment practices is reflected in the development of India’s workplace discrimination regulations. Strong legal frameworks that address different types of discrimination, such the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rights of Persons with Disabilities Act, 2016, have made significant strides. But problems still exist, such as biases and indirect discrimination based on sexual orientation, religion, or caste. Employers need to be on guard, making sure that current regulations are followed and proactively putting inclusive policies into place. This entails consistent training, objective hiring procedures, and the implementation of efficient grievance resolution systems. Organizations can protect employee rights and foster equitable, welcoming work environments by adopting these strategies.

 

References

[1] Employment law and workplace discrimination: an understanding iPleaders

[2] Vishaka & Ors vs State Of Rajasthan & Ors on 13 August, 1997

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