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INDUSTRIAL LAW AND LABOUR LAW

The terms Industrial law and Labour Law are often used interchangeably in our country. The scope of the term industrial is, however much wider. Broadly speaking industrial law covers all statutes and case law pertaining to industry. s such it covers not only laws affecting or relating to industry and labour but also laws pertaining to ta!ation and corporate matters. In the restricted sense, the term Industrial law is "confined only to those laws which have bearing on industry in its relation to or as affecting labour#. In this sense industrial law is a term synonymous with labour law, which obviously covers only those laws which are primarily concerned with labour. The Labour Law is used to denote that body of laws which deal with employment and non$employment, wages, working conditions, industrial relations, social security and labour welfare of industrially employed persons. The origin and growth of labour law may be ascribed mostly to the development of organi%ed industry where a large number of workers, are employed "under conditions which tend to be detrimental to their health safety and welfare and against which they are unable to protect themselves#.

IMPORTANCE OF LABOUR LAWS


Labour laws proceeds from two basic concepts& '. The relationship between workers and employers is one of partnership in the maintenance of production and the building up of the national economy. (. The community as a whole as well as individual employers are under an obligation to protect the well$being of workers and to secure to them, their due share in the gains of economic developments. The need of knowing and applying these laws is two fold, namely& '. To improve the service conditions of industrial labour so as to provide for them, the ordinary amenities of life and by that process, (. To bring about industrial peace in its turn accelerate productive activity of the country resulting in its prosperity. To sum up labour legislation is necessary for the following reasons& '. Individual workers are economically weak. They can not bargain with the employers for the protection of their rights and even for subsistence wages. (. The workers are e!posed to certain risks in the factories. s such , in order to make provision for their health, safety, and welfare, legislation is needed. ). In order to increase the bargaining power of labour, legislation is necessary to encourage the formation of trade unions. *. In order to avoid industrial disputes which lead to strikes and lock$outs, labour legislation is needed. +. Laws for providing compensation to workmen who die or are in,ured during and in course of employment are also needed. 6. Labour legislatio a!"a #es t$e i terests o% t$e &or'i g (eo(le a ! t$us $el(s i t$e !e"elo()e t o% t$e atio al e#o o)* o a sou ! a ! sel%+relia t basis.

CONTRACT LABOUR ,RE-ULATION AND ABOLITION. ACT/ 0123


-urpose of the ct is to regulate employment of contract labour and to provide for abolition of contract labour in certain cases. Establishment to which Act applies $ The ct is applicable to every establishment in which (. or more workmen are employed as contract labour or were so employed anytime during last '( months. /0ection '1)21a23. It will not apply to establishment where work of an intermittent or casual nature is performed. /0ection '1+21a23. 4stablishment means any office or department of 5overnment or a local authority or any place where any industry, trade, business, manufacturing or occupation is going on. /0ection (1'21e23. 4very such establishment is re6uired to get itself registered under the ct. /0ection 73. 8anager or occupier of factory or head of department of 5overnment9local authority is termed as -rincipal 4mployer. /0ection (1'21g23. -rincipal 4mployer should maintain register of contractors in prescribed form. /0ection (:3. ;e is re6uired to ensure that contractor makes ade6uate provision for canteen, rest rooms, supply of drinking water, latrines, urinals, wash rooms etc. to contract labour. If contractor fails to do so within prescribed time, the -rincipal 4mployer shall provide the amenities. <an recover from contractor the cost incurred by him in providing these amenities. /0ection (.3. Contract Labour = workman is deemed to be employed as contract labour in or in relation to work of the establishment, if he is hired for such work by or through a contractor, with or without knowledge of principal employer. /0ection (1'21b23. Contractor $ The ct applies to every contractor who employs (. or more workmen. /0ection '1)21b23. The contractor should be licensed. /0ection '(3. <ontractor is re6uired to maintain muster roll and register of wages. /0ection (:3. ;e is re6uired to follow other provisions as may be contained in >ules made by ppropriate 5overnment. <ontractor is re6uired to pay wages to workmen on time, in presence of authori%ed representative of principal employer. /0ection ('3. $ $ ;e should issue wage slips to workman and obtain signature or thumb impression on wage register. $ $ if contractor fails to make payment of wages, -rincipal 4mployer is liable to make payment of wages to contract labour. ;e can recover this amount from contractor. /0ection ('1*23. <ontractor is re6uired to provide canteen facilities, first$aid, rest rooms, drinking water, latrines and washing facilities, as per rules made by 0tate 5overnment. /0ections '? and '73.

Controlling authority = <ontrol over contract labour will be e!ercised by ppropriate 5overnment. ppropriate 5overnment means @ <entral 5overnment in case of railways, docks, IA<I, 40I<, LI<, BC5<, DTI, irport uthority, industry carried on by or under authority of <entral 5overnment @ 0tate 5overnment in case of other industrial disputes /section (1'21a23. ppropriate 5overnment can make rules. It will appoint inspecting staff to ensure that the provisions of ct are being followed. /0ection (E3. Other laws applicable to contract labour = Besides <ontract Labour 1>egulation and bolition2 ct, various other cts are applicable to contract labour = 1a2 Aactories ct = The ct makes no distinction between persons directly employed and employed through contractor 1b2 4mployees -rovident Aunds ct 1c2 40I< 1d2 -ayment of Fages ct 1e2 8inimum Fages ct 1f2 Industrial Gisputes ct 1g2 Forkmens <ompensation ct. Prohibition of employment of contract labour = ppropriate 5overnment can prohibit employment of contract labour in any process, operation or work in any establishment, by issuing such order in respect of any establishment, 5overnment will consider aspects of conditions of work and benefits provided to contract labour, whether process operation or work is incidental or necessary for the industry9trade9business, perennial nature, whether it is done ordinarily through regular workmen in other similar establishment. /0ection '.1(23. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the contract labour ct and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

EMPLO4EES PRO5IDENT FUNDS AND MISCLELLANEOUS ACT/ 0167


s per -reamble to the ct, the 4-A ct is enacted to provide for the institution of provident funds, pension fund and deposit lined insurance fund for employees in factories and other establishments. The 4mployees -rovident Aunds and 8iscellaneous -rovisions ct is a social security legislation to provide for provident fund, family pension and insurance to employees. 4mployee has to pay contribution towards the fund. 4mployer also pays e6ual contribution. The employee gets a lump sum amount when he retires, which will be useful to him after retirement. The ct covers three schemes i.e. -A 1-rovident Aund scheme2, A-A 1Aamily -ension Aund scheme2 and 4GLI 14mployees Geposit Linked Insurance scheme2. The 4-A ct contains basic provisions in respect of applicability, eligibility, damages, appeals, recovery etc. The three schemes formed by <entral 5overnment under the ct make provisions in respect of those schemes.

A((li#abilit* o% t$e A#t + The ct applies to 1a2 4very establishment which is a factory engaged in industry specified in 0chedule I to the ct and in which (. or more persons are employed and 1b2 any other establishment or class of establishment employing (. or more persons which may be specified by <entral government by notification in official ga%ette. <entral 5overnment can also apply provisions of the ct to any establishment even if it employs less than (. persons. /0ection '1)23. 4ven if the provisions of -A ct are not applicable in a particular establishment, if employer and ma,ority of employees agree, the <entral -rovident Aund <ommissioner can apply the provisions to that establishment by issuing a notification in Bfficial 5a%ette. /0ection '1*23. Coverage of Act - The ct has been e!tended to @ Aactories @ 8ines other than coal mines @ ;otels and restaurants @ -lantation of tea, coffee, rubber /Tea factories in ssam have been e!cluded vide para '1)21a2 of 4-A 0cheme3 @ Trading and commercial establishments engaged in purchase, sale or storage of goods @ 4stablishments of e!porters, importers, advertisers, stock e!changes @ <anteens @ 4stablishments of ttorneys, < , I<F s, 4ngineers and <ontractors, architects and medical practitioners @ ;ospitals @ Travel agencies @ Banks doing business only in one 0tate @ 5eneral Insurance @ 4!pert services @ <lubs and societies rendering services to their members @ gricultural farms @ Ainancial 4stablishments other than banks @ Building and construction Industry @ -oultry farming @ Dniversity, college or schools. $ $ The ct has been e!tended w.e.f. '.*.(..' vide notification dated ((.).(..', to @ courier services @ ircraft or airlines other than aircraft or airline owned or controlled by 5overnment @ 4stablishment engaged in rendering cleaning and sweeping services. O #e a establis$)e t is #o"ere! u !er PF/ all its !e(art)e ts a ! bra #$es &$ere"er t$e* are situate! are also #o"ere!. Establishment to include all departments and branches + Where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment. /0ection ( 3. Thus, if factory is covered, the head office and branches will also be covered under the ct. Where PF Act is not applicable - The -A ct is not applicable to certain establishments Aactories or establishments employing less than (. employees. ;owever, once ct becomes applicable, it continues to apply even if subse6uently, the number is lower than (. @ Banks doing business in more than one 0tate @ <oal mines @ Dnits established under <ooperative 0ocieties ct employing less than +. workers and working without aid of power @ Bther establishments belonging to or under control of <entral 5overnment or 0tate 5overnments and whose employees are entitled to benefits of contributory

provident fund or pension. @ Tea factories in <entral 5overnment by a special notification.

ssam @ 4!emption granted by

Administration of the Fund $ Both employer and employee have to pay contribution at prescribed rates.. These amounts are credited to a fund. The fund vests in and is administered by <entral Board. /0ection +1' 23. Employees covered under the scheme $ s per section (1f2, "employee# means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer. It includes any person $ 1 i2 employed by or through a contractor in or in connection with the work of the establishment 1ii2 engaged as an apprentice, not being an apprentice engaged under the pprentices ct, ':?' or under the standing orders of the establishment. Non-Eligible employees under PF - @ 4mployee whose pay is more than >s. ?,+.. per month are not eligible. 1It may be noted that limit of pay was >s ?+.. Employee to become member of Fund immediately on joining 4very employee employed in or in connection with work of a factory or establishment to which the ct applies is entitled and re6uired to become member of -rovident Aund, unless he is an e!cluded employee. /para (?1'2 of 4-A 0cheme3. n employee who is drawing pay above prescribed limit 1presently >s ?,+..2 can become member with permission of ssistant -A <ommissioner, if he and his employer agree. /para (?1?2 of 4-A 0cheme3. Contribution by employer and employee $ s per section (1c2 "contribution# means a contribution payable in respect of a member under a 0cheme or the contribution payable in respect of an employee to whom the Insurance 0cheme applies. s per section ?, contribution shall be paid by employer I '.J of basic wages plus dearness allowance plus retaining allowance. This amount is defined as pay as per e!planation to /para (1f21ii23 of 4-A 0cheme. 46ual contribution is payable by employee also. This contribution can be increased to '(J by <entral 5overnment and in fact, has been increased to '(J in most of the cases. person who is already a member continues to be a member even if his pay e!ceeds >s ?,+... ;owever, the contribution is limited to >s ?,+.. only. /para (? 1(2 of 4-A 0cheme3.

PFC is liable under Consumer Protection Act $ The >egional -rovident Aund <ommissioner is providing service under the ct and hence he is liable under <onsumer -rotection ct. This is the main scheme under the ct. Both employer and employee have to pay contribution to -rovident Aund. The employer has to deduct contribution of employee from the salary of employee and has to pay both employees contribution as well as employers contribution by a challan in prescribed form. The amount has to be paid in approved bank. 48-LBH44 < C - H ;I5;4> <BCT>IBDTIBC $ 4mployee has to contribute '(9'.J of his KpayK as contribution. The employee can voluntarily pay higher contribution above the statutory rate. ;owever, employer does not have to match the voluntary contribution, over and above the statutory rate. /para (?1(2 of 4-A 0cheme3. Contribution payable under PF !cheme " T$e Pri #i(al E)(lo*er is liable to (a* #o tributio o% $is o& e)(lo*ees as &ell as e)(lo*ees e)(lo*e! t$roug$ #o tra#tor. Pri #i(al E)(lo*er #a re#o"er %ro) #o tra#tor t$e a)ou t (ai! b* $i) o be$al% o% #o tra#tor. T$e #o tributio is 078 o% 9(a*: i.e. basi# &ages/ (lus !ear ess allo&a #e/ #as$ "alue o% %oo! #o #essio a ! retai i g allo&a #e. Co tributio o% bot$ e)(lo*er a ! e)(lo*ee is sa)e i.e. 078 ea#$. ;(ara 71 o% EPF S#$e)e<. Lower contribution in certain cases - The employerKs and employees contribution is '(J each. This is applicable to many of industries and establishments. ;owever, this contribution is not applicable to $ @ any establishment employing less than (. persons @ any establishment registered with Board for Industrial and Ainancial >econstruction 1BIA>2 as a sick company $ the lower rate of contribution continues till its net worth is positive @ any other establishment which has accumulated loss e6ual to or more than its assets and has also suffered cash loss in last two years. @ Lute industry @ Beedi industry @ Brick industry @ <oir industry other than the spinning sector @ 5uar gum factories. In these cases, the contribution is '.J. #nterest on account = -A <ommissioner shall maintain account of each member of 4-A scheme. /-ara +: of 0cheme3. Interest is credited to the account of employee. The Interest is calculated on monthly running balance basis. mount standing to credit at end of the month is considered for calculation of interest for the following month. The interest rate is declared every year by <entral 5overnment in consultation with <entral Board of Trustees of -rovident Aund. /-ara ?. of 4-A 0cheme3.

EMPLO4EES: PENSION SC=EME/ 0116


This scheme has been introduced w.e.f. '?th Covember, :+. The 0cheme is applicable to all subscribers of 4mployers -rovident Aund. It is also compulsory to persons who were subscribers as on '?.''.:+. <BCT>IBDTIBC $ The employers contribution of E.))J will be diverted to the fund of -ension 0cheme. 4mployee does not have to make any contribution. 4mployers contribution is '(J9 '.J. In such cases, E.))J is diverted to -ension scheme and balance '.?7J9).?7J as the case may be, will be in credit of employees name in -rovident Aund account. The E.))J is on ma!imum salary of >s. ?,+... If some employers are paying contribution on salary in e!cess of >s. ?,+.., the e!cess contribution will be credited to -rovident Aund account and not to -ension scheme. Co separate administration charges or inspection charges are payable, as these are already paid along with -rovident Aund contribution. B4C4AIT0 DCG4> T;4 0<;484 $ 8embers will get pension on superannuation or retirement from service and upon disablement during employment. Aamily pension will be available to widow9widower for life or till he9she remarries. In addition, children will be entitled to pension, upto (+ years of their age. In case of orphans, pension at enhanced rate is available upon death of widow9widower or ceasing payment of widow pension. Benefit of pension to children or orphan is only restricted for two children9orphans. If the person is unmarried or has no family, pension is available to nominee for a specified period. <B88DT TIBC BA -4C0IBC $ The member can commute )).))J of the pension, so as to receive hundred times the monthly pension so commuted as commuted value of pension. Balance will be paid on monthly basis.

T=E EMPLO4EES STATE INSURANCE ACT ,ESI ACT./ 01>?


The 40I ct has been passed to provide for certain benefits to employees in case of sickness, maternity and employment in,ury and to make provisions for related matters. s the name suggests, it is basically an insurance scheme i.e. employee gets benefits if he is sick or disabled. 40I< $ 4mployees 0tate Insurance <orporation 140I<2 has been formed to supervise the scheme under section ) of the ct. The <orporation supervises and controls the 40I scheme. CB GI08I00 L B> -DCI0;84CT GD>IC5 -4>IBG BA 0I<MC400 $ 0ection 7) of the ct provides that no employer shall dismiss, discharge or reduce or

otherwise punish an employee during the period employee is in receipt of sickness benefit or maternity benefit. ;e also cannot dismiss, discharge or otherwise punish employee when he is in receipt of disablement benefit or is under medical treatment or is absent from work due to sickness. This gives protection to employee when he is in receipt of sickness benefit or maternity benefit. 4mployer cannot take disciplinary action against employee in such cases. This provision is grossly misused by employees. T$is (ro"isio ,o% se#tio 2@. is a((li#able o l* i #ase o% (u iti"e a#tio %or all 'i !s o% )is#o !u#t !uri g &$i#$ e)(lo*ee $as re#ei"e! si#' ess be e%its. T$is (rote#tio is ot a((li#able i #ase o% aba !o )e t o% e)(lo*)e t or &$e ter)i atio is auto)ati# as (er #o tra#t. Applicability of E!# !cheme " The scheme is applicable to all factories. /section '1*23. The ppropriate 5overnment can also make it applicable to any other industrial, commercial, agricultural or other establishments, by issuing notification and giving ? month notice. /section '1+23. Thus, 40I ct can be made applicable to shops also. ;owever, since 5overnment has to provide for hospitals and medical facilities, the ct can be made applicable to different parts of 0tate at different dates. Thus, if a factory is at a place where 40I< is unable to provide medical facilities, 40I ct may not be made applicable to that area. 5overnment can e!empt a factory or establishment or persons or class of persons from provisions of 40I ct, if the employees are getting better medical facilities9 /e.g. if 5overnment is convinced that the factory itself is providing very good medical facilities e.g. like TI0<B3. Definition of factory as per ESI Act - The Aactory means any premises where manufacturing process is carried out. If manufacture is without aid of power, the ct is applicable if persons employed are at least (.. If manufacture is with aid of power, the ct applies if persons employed are at least '.. /section (1'(23. ;owever, mines have been e!cluded. 8anufacturing process has same meaning as defined under Aactories ct. /section (1'* 23. Bne a factory or establishment is covered, it continues to be covered even if number of employees reduce. /section '1?23 CONSTRUCTION WORAERS NOT CO5ERED B Co stru#tio &or'ers e)(lo*e! i #o stru#tio a#ti"ities are ot #o"ere! u !er ESIC. B ESIC #ir#ular No. P+07,00.+00C72C11 I s.I5 !ate! 0>+6+0111. =o&e"er/ i% a!)i istrati"e o%%i#e e)(lo*s 73 or )ore eligible e)(lo*ees/ t$at establis$)e t a ! e)(lo*ees &or'i g i a!)i istrati"e o%%i#e &ill be #o"ere!.

Employer under ESI Act -rincipal 4mployer means @ owner or occupier of factory @ ;ead of department in case of 5overnment department and @ -erson responsible for supervision and control, in case of any other establishment. /section (1'723. $ $ 4mployees working though contractor are also covered. <ontractor is termed as Immediate 4mployer. Employee under ESI Act - 4mployee means any person employed for wages in or in connection with work of a factory or establishment to which the 40I ct applies. 4mployees drawing wages upto >s. ?,+.. per month can be presently covered under the 40I ct scheme. /section (1:23. 4mployees include @ persons employed through contractor @ pprentices ot er t an those covered under pprentices ct @ -ersons employed in administration office, department or branch for purchase or sale of products. @ <asual workers engaged in work incidental to or connected with work of factory or establishment @ 4mployees working at head office when factory is located at different place @ <anteen staff, watch and ward staff are employees @ 0taff in hospital attached to factory are employees. $ $ 8embers of Indian Caval, 8ilitary or ir Aorces are e!cluded. If an employee is drawing wages less than >s. ?,+.. per month at the beginning of his contribution period, his contributions are payable for whole period of contribution period of si! months even if in between his wages go above >s. ?,+.. p.m. /pro!iso to section (1:23. Contribution to E!#C Fund " Both employee and employer have to make contribution to 40I<. The employer has to deduct contribution from wages of employee and pay to 40I< both the employers contribution as well as employees contribution. /section ):1'23. The contribution is payable for wage period i.e. the period in respect of which wages are payable to employee. /section ):1(23. Cormally, wage period is a month. The employees contribution is '.7+J of wages. It should be rounded off to ne!t + paise. 4mployees contribution is not payable when daily wages are below >s '+9$. 4mployers contribution is *.7+J of total wage bill of all employees in respect of every wage period. Thus, it is not necessary to calculate employerKs contribution separately for each employee. *.7+J of gross wages should be calculated and rounded off to ne!t + paise. 4mployees drawing wages lower than >s (+ per day do not have to pay employeeKs share. The contribution has to be paid within (' days from close of the month. It is payable by a challan in authori%ed bank. $ $ If the contribution is not paid in time, interest I '(J is payable. /section ):1+21a23. In addition, 40I< authorities can impose damages varying between +J to (+J of arrears of contribution.

4mployer cannot deduct employers contribution from the salary of employee. /section *.1)23. LI BILITH BA ->IC<I- L 48-LBH4> = In case of employees of contractor, liability is of -rincipal 4mployer. Wage for purpose of E!# Act " 9Wages: )ea s all re)u eratio (ai! or (a*able i #as$ to e)(lo*ee a##or!i g to ter)s o% #o tra#t o% e)(lo*)e t a ! i #lu!es a * (a*)e t )a!e to a e)(lo*ee i res(e#t o% (erio! o% aut$oriDe! lea"e/ lo#'+out/ la*+o%%/ stri'e &$i#$ is ot illegal a ! ot$er a!!itio al re)u eratio (ai! at i ter"al ot eE#ee!i g t&o )o t$s. It !oes ot i #lu!e F #o tributio (ai! b* e)(lo*er to a * (e sio %u ! or (ro"i!e t %u ! F Tra"elli g allo&a #e F Rei)burse)e t o% eE(e ses )a!e b* ature o% e)(lo*)e t o% t$e e)(lo*ee F gratuit*. ;se#tio 7,77.<. Contribution period and $enefit period " <ontribution period is 1a2 'st 0eptember to )'st 8arch 1b2 'st pril to ).th 0eptember. The corresponding benefit period is 1a2 following 'st Luly to )'st Gecember 1 b2 following 'st Lanuary to ).th Lune. Thus, benefit period starts three months after the contribution period is over. The relevance of this definition is that sickness benefit and maternity benefit is available only during benefit period. $enefits to employees covered under E!# Act " n employee is entitled to get benefits which are medical benefits as well as cash benefits. ;e also can get disablement benefit.

EGUAL REMUNERATION ACT ,0126.


s the name of the ct suggests, the ob,ect of the ct is to provide for payment of e6ual remuneration to men and women workers and to prevent discrimination on the ground of se! against women in employment. The ct has overriding effect over other cts. /section )3 GDTH BA 48-LBH4> TB - H 4ND L >48DC4> TIBC = It is duty of each employer not to make any discrimination while paying remuneration to any worker of opposite se!. ;e should pay same wages to workmen of both se!es for performing same work or work of a similar nature. /section *3. 0ame work or work of similar nature means work in respect of which the skill, effort and responsibility re6uired are the same, when performed under similar working conditions, by a man or woman and the difference, if any, between the skill, effort and responsibility re6uired of a man and those re6uired of a woman are not of practical importance in relation to the terms and conditions of employment. /section (1h23. CB GI0<>I8IC TIBC F;IL4 >4<>DIT84CT B> ->B8BTIBC = There should be no discrimination on recruitment, promotion, training or transfer, e!cept where employment of women is restricted. /section +3. These provisions are not

applicable when priority is to be given to schedules castes, schedules tribes, e!$ servicemen or retrenched employees. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

FACTORIES ACT ,01>?.


This is one of the earliest welfare legislation. The ob,ect is to secure to workers health, safety, welfare, proper working hours and other benefits. Aactories ct is enacted primarily with ob,ect to of protecting workers employed in factories against industrial and occupational ha%ards. The ct re6uires that workers should work in healthy and sanitary conditions and for that purpose it provides that precautions should be taken for safety of workers and prevention of accidents. Incidental provisions have also been made. Aactories ct, ':*E was engrafted in the 0tatute Book where emphasis had been on the welfare of the workers. Aactory Inspectors have been placed with heavy responsibility on them. The ct undoubtedly is welfare legislation and cannot be termed to be a complete code in itself. In this case, it was held that if a workman is found working during period not notified beforehand, prosecution can be launched. KAactoryK means any premises where '. or more workers are working and a manufacturing process is carried out with aid of power 1(. if manufacture is without aid of power2. /section (1m23. 8anufacturing process means process of altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adopting any article or substance. It also includes @ pumping oil, water, sewage or any other substance @ 5enerating, transforming or transmitting power @ <omposing, typing, printing @ <onstructing, repairing, breaking of ships or vessels @ -reserving articles in cold storage. /section (1k23. Forker means a person employed in any manufacturing process or cleaning or any work incidental to manufacturing process. It includes persons employed through contractor. /section (1l23. HFa#tor*H s$oul! be li#e se! C registere! &it$ C$ie% I s(e#tor o% Fa#tories ,ter)e! as Dire#tor o% I !ustrial =ealt$ I Sa%et* i so)e States.. ;se#tio 6<. T$e li#e se C registratio $as to be re e&e! e"er* *ear b* (a*i g (res#ribe! %ees. B<<D-I4> BA T;4 A <TB>H = Bccupier of a factory means the person who has ultimate control over the affairs of factory. It includes a partner in case of firm and director in case of a company. In case of 5overnment <ompany, KoccupierK

need not be a director Besides KoccupierK, name of K8anagerK should also be informed. ny change in name of 8anager shall also be informed. /section 71*23. GDTI40 BA 4O4>H 8 CDA <TD>4> = 4very manufacturer or importer of any article or substance in factory shall design it in such a way that it is safe to use and carry. de6uate safety information about the article should be given. /section 7B3. FACILITIES AND CON5ENIENCES + T$e %a#tor* s$oul! be 'e(t #lea . ;se#tio 00<. T$ere s$oul! be arra ge)e t to !is(ose o% &astes a ! e%%lue ts. ;se#tio 07<. 5e tilatio s$oul! be a!eJuate. Reaso able te)(erature %or #o)%ort o% e)(lo*ees s$oul! be )ai tai e!. ;se#tio 0@<. Dust a ! %u)es s$oul! be #o trolle! belo& (er)issible li)its. ;se#tio 0><. Arti%i#ial $u)i!i%i#atio s$oul! be at (res#ribe! sta !ar! le"el. ;se#tio 06<. O"er#ro&!i g s$oul! be a"oi!e!. ;se#tio 06<. A!eJuate lig$ti g/ !ri 'i g &ater/ latri es/ uri als a ! s(ittoo s s$oul! be (ro"i!e!. ;se#tio s 02 to 01<. WELFARE + A!eJuate %a#ilities %or &as$i g/ sitti g/ stori g #lot$s &$e ot &or !uri g &or'i g $ours. ;se#tio >7<. I% a &or'er $as to &or' i sta !i g (ositio / sitti g arra ge)e t to ta'e s$ort rests s$oul! be (ro"i!e!. ;se#tio >><. A!eJuate First ai! boEes s$all be (ro"i!e! a ! )ai tai e! ;se#tio >6<. A <ILITI40 IC < 04 BA L >54 A <TB>I40 $ Aollowing facilities are re6uired to be provided by large factories $ @ mbulance room if +.. or more workers are employed @ <anteen if (+. or more workers are employed. It should be sufficiently lighted and ventilated and suitably located. /section *?3. @ >est rooms 9 shelters with drinking water when '+. or more workmen are employed /section *73 @ <rPches if ). or more women workers are employed. /section *E3 @ Aull time Felfare Bfficer if factory employs +.. or more workers /section *:3 @ Sa%et* O%%i#er i% 0/333 or )ore &or')e are e)(lo*e!. SAFET4 + All )a#$i er* s$oul! be (ro(erl* %e #e! to (rote#t &or'ers &$e )a#$i er* is i )otio . ;se#tio 70 to 72<. =oists a ! li%ts s$oul! be i goo! #o !itio a ! teste! (erio!i#all*. ;se#tio 7? a ! 71<. Pressure (la ts s$oul! be #$e#'e! as (er rules. ;se#tio @0<. Floor/ stairs a ! )ea s o% a##ess s$oul! be o% sou ! #o stru#tio a ! %ree %or) obstru#tio s. ;se#tio @7<. Sa%et* a((lia #es %or e*es/ !a gerous !usts/ gas/ %u)es s$oul! be (ro"i!e!. ;se#tio s @6 a ! @6<. Wor'er is also u !er obligatio to use t$e sa%et* a((lia #es. =e s$oul! ot )isuse a * a((lia #e/ #o "e ie #e or ot$er t$i gs (ro"i!e!. ;se#tio 000<. I #ase o% $aDar!ous substa #es/ a!!itio al sa%et* )easures $a"e bee (res#ribe!. ;se#tio s >0A to >0=<. A!eJuate %ire %ig$ti g eJui()e t s$oul! be a"ailable. ;se#tio @?<. Sa%et* O%%i#er s$oul! be a((oi te! i% u)ber o% &or'ers i %a#tor* are 0/333 or )ore. ;se#tio >3B<.

FB>MIC5 ;BD>0 $ worker cannot be employed for more than *E hours in a week. /section +'3. Feekly holiday is compulsory. If he is asked to work on weekly holiday, he should have full holiday on one of three days immediately or after the normal day of holiday. /section +(1'23. ;e cannot be employed for more than : hours in a day. /section +*3. t least half an hour rest should be provided after + hours. /section ++3. Total period of work inclusive of rest interval cannot be more than '..+ hours. /section +?3. worker should be given a weekly holiday. Bverlapping of shifts is not permitted. /section +E3. Cotice of period of work should be displayed. /section ?'3. BO4>TI84 F 540 $ If a worker works beyond : hours a day or *E hours a week, overtime wages are double the rate of wages are payable. /section +:1'23. workman cannot work in two factories. There is restriction on double employment. /section ?.3. ;owever, overtime wages are not payable when the worker is on tour. Total working hours including overtime should not e!ceed ?. in a week and total overtime hours in a 6uarter should not e!ceed +.. >egister of overtime should be maintained. n employee working outside the factory premises like field workers etc. on tour outside head6uarters are not entitled to overtime. 48-LBH84CT BA FB84C $ woman worker cannot be employed beyond the hours ? a.m. to 7... pm. 0tate 5overnment can grant e!emption to any factory or group or class of factories, but no woman can be permitted to work during '. -8 to + 8. 0hift change can be only after weekly or other holiday and not in between. /section ??3. >4<B>G0 BA FB>M84C $ register 1muster roll2 of all workers should be maintained. Co worker should be permitted to work unless his name is in the register. >ecord of overtime is also re6uired to be maintained. /section ?(3. LEA5E + A &or'er is e title! i e"er* #ale !ar *ear a ual lea"e &it$ &ages at t$e rate o% o e !a* %or e"er* 73 !a*s o% &or' (er%or)e! i t$e (re"ious #ale !ar *ear/ (ro"i!e! t$at $e $a! &or'e! %or 7>3 !a*s or )ore i t$e (re"ious #ale !ar *ear. C$il! &or'er is e title! to o e !a* (er e"er* 06 !a*s. W$ile #al#ulati g 7>3 !a*s/ ear e! lea"e/ )ater it* lea"e u(to 07 &ee's a ! la* o%% !a*s &ill be #o si!ere!/ but lea"e s$all ot be ear e! o t$ose !a*s. ;se#tio 21<. Lea"e #a be a##u)ulate! u(to @3 !a*s i #ase o% a!ult a ! >3 !a*s i #ase o% #$il!. Lea"e a!)issible is eE#lusi"e o% $oli!a*s o##urri g !uri g or at eit$er e ! o% t$e lea"e (erio!. F 540 AB> B9T CG L4 O4 0 L >H $ KFagesK for leave encashment and overtime will include dearness allowance and cash e6uivalent of any benefit. ;owever, it will not include bonus or overtime. CBTI<4 BA <<IG4CT0, GI04 040 4T<. $ Cotice of any accident causing disablement of more than *E hours, dangerous occurrences and any worker

contacting occupational disease should be informed to Aactories Inspector. /section EE3. Cotice of dangerous occurrences and specified diseases should be given. /sections EE and E:3. BBLI5 TIBC >45 >GIC5 ; Q >GBD0 ->B<40040 9 0DB0T C<40 $ Information about ha%ardous substances 9 processes should be given. Forkers and general public in vicinity should be informed about dangers and health ha%ards. 0afety measures and emergency plan should be ready. 0afety <ommittee should be appointed. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the Aactories ct and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

PA4MENT OF BONUS ACT/ 0166


Bonus is really a reward for good work or share of profit of the unit where the employee is working. Bften there were disputes between employer and employees about bonus to be paid. It was thought that legislation will solve the problem and hence Bonus ct was passed. Dnfortunately, in the process, bonus has become almost as deferred wages due to provision of payment of minimum E.))J and ma!imum (.J bonus. Bonus ct has not in any way reduced the disputes. The ct is applicable to 1a2 any factory employing '. or more persons where any processing is carried out with aid of power 1b2 Bther establishments 1established for purpose of profit2 employing (. or more persons. 8inimum bonus payable is E.))J and ma!imum is (.J. Bonus is payable annually within E months from close of accounting year. Bonus is payable to all employees whose salary or wages do not e!ceed >s ),+.. per month provided they have worked for at least ). days in the accounting year. ;owever, for calculation of bonus, ma!imum salary of >s (,+.. is considered. Bnce the ct is applicable, it continues to apply even if number of employees fall below (.. The ct is applicable to 5overnment companies and corporations owned by 5overnment which produces goods or renders services in competition with private sector. ;owever, the ct is not applicable to 5overnment employees, the employees of 8unicipal <orporation or 8unicipality, railway employees, university and employees of educational institutions, public sector insurance employees, employees of >BI and public sector financial institutions, charitable hospitals, social welfare organi%ations and defense employees. The ct does not apply to any institution established not for purposes of profit.

Establishments to which the Act is applicable + T$e A#t a((lies toK , a. e"er* %a#tor*L and ,b. e"er* ot$er establis$)e t i &$i#$ t&e t* or )ore (erso s are e)(lo*e! o a * !a* !uri g a a##ou ti g *ear. ;se#tio 0,@.<. Aactory has same meaning as per Aactories ct. /section (1'72 of Bonus ct3. The words used are number of persons employed. ;ence, all persons employed are to be considered, including those who are not eligible for bonus. Thus, all employees including those, whose salary or wages e!ceed >s ),+.. per annum will have to be considered for purpose of deciding eligibility. 40T BLI0;84CT0 TB IC<LDG4 G4- >T84CT0, DCG4>T MIC50 CG B> C<;40 + Fhere an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this ct. /section )3 Who are eligible for bonus + E)(lo*ees !ra&i g salar* or &ages u(to Rs @/633 (er )o t$ are e title! to bo us/ i% $e $as &or'e! %or at least @3 &or'i g !a*s i a a##ou ti g *ear. E"e a &or'er &or'i g i seaso al %a#tor* is eligible i% $e $as &or'e! %or at least @3 &or'i g !a*s. A((re ti#es are ot eligible %or bo us. 0alary above >s. (,+.. is not considered for calculation of Bonus. /section '(3. 4mployee drawing salary9wage e!ceeding >s ),+.. is not entitled to any bonus under the ct. Thus, minimum bonus I E.))J will be >s (,+.. and ma!imum I (.J will be >s ?,... for the year, when salary of employee e!ceeds >s (,+.. but is less than >s ),+... Computation of amount available for distribution as bonus + The establishment has to prepare a balance sheet and profit and loss account of the year and calculate the gross profit, available surplus and allocable surplus as per method and formula given in Bonus ct. %inimum bonus + E"er* e)(lo*er s$all be bou ! to (a* to e"er* e)(lo*ee i res(e#t o% a * a##ou ti g *ear/ a )i i)u) bo us &$i#$ s$all be ?.@@ (er #e t o% t$e salar* or &age ear e! b* t$e e)(lo*ee !uri g t$e a##ou ti g *ear or o e $u !re! ru(ees/ &$i#$e"er is $ig$er/ &$et$er or ot t$e e)(lo*er $as a * allo#able sur(lus i t$e a##ou ti g *ear. W$ere a e)(lo*ee $as ot #o)(lete! %i%tee *ears o% age at t$e begi i g o% t$e a##ou ti g *ear/ t$e )i i)u) bo us (a*able is ?.@@8 or Rs 63 &$i#$e"er is $ig$er. ;se#tio 03<.

Fhile computing number of working days, an employee shall be deemed to have worked in an establishment even on the days on which 1a2 ;e was laid off 1b2 ;e was on leave with salary9wages1c2 ;e was absent due to temporary disablement caused by accident arising out of and in course of employment and 1d2 4mployee was on maternity leave with salary9wages. /section '*3. Payment of ma&imum bonus + Fhere in respect of any accounting year, the allocable surplus e!ceeds the amount of minimum bonus payable to the employees, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year sub,ect to a ma!imum of twenty per cent of such salary or wage. /section ''1'23. $ $ In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section '+ shall be taken into account in accordance with the provisions of that section. /section ''1(23. Thus, ma!imum bonus payable to employee is (.J in any accounting year. !alary or wages for calculating bonus $ Fhere the salary or wage of an employee e!ceeds >s (,+.. per month, the bonus payable to such employee under sections '. or '' shall be calculated as if his salary or wages were >s (,+.. per month. /section ')3. In other words, employees drawing salary or wages between >s (,+.. to >s ),+.. per month are entitled to bonus on the basis of >s (,+.. per moth salary only. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

PA4MENT OF -RATUIT4 ACT/ 0127


5ratuity is a lump sum payment to employee when he retires or leaves service. It is basically a retirement benefit to an employee so that he can live life comfortably after retirement. ;owever, under 5ratuity ct, gratuity is payable even to an employee who resigns after completing at least + years of service. <T ->BOIG40 AB> 8ICI8D8 5> TDITH BCLH = The 5ratuity ct provides only for minimum gratuity payable. If employee has right to receive higher gratuity under a contract or under an award, the employee is entitled to get higher gratuity. /section *1+23. Employers liable under the scheme " The ct applies to every factory, mine, plantation, port, and railway company. It also applies to every shop and establishment where '. or more persons are employed or were employed on any

day in preceding '( months. /section'1)23. 0ince the ct is also applicable to all shops and establishments, it will apply to motor transport undertakings, clubs, chambers of commerce and associations, local bodies, solicitors offices etc. , if they are employing '. or more persons. Employees eligible for gratuity ' 4mployee means any person 1other than apprentice2 employed on wages in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi$skilled or unskilled, manual, supervisory, technical or clerical work, whether terms of such employment are e!press or implied, and whether such person is employed in a managerial or administrative capacity. ;owever, it does not include any <entral90tate 5overnment employee. /section (1e23. Thus, the ct is applicable to all employees $ workers as well as persons employed in administrative and managerial capacity. -ratuit* is (a*able to a (erso o , a. resig atio ,b. ter)i atio o a##ou t o% !eat$ or !isable)e t !ue to a##i!e t or !isease , c. retire)e t ,!. !eat$. Nor)all*/ gratuit* is (a*able o l* a%ter a e)(lo*ee #o)(letes %i"e *ears o% #o ti uous ser"i#e. I #ase o% !eat$ a ! !isable)e t/ t$e #o !itio o% )i i)u) 6 *ears: ser"i#e is ot a((li#able. ;se#tio >,0.<. (he Act is applicable to all employees) irrespective of the salary* Amount of gratuity payable " 5ratuity is payable I '+ days wages for every year of completed service. In the last year of service, if the employee has completed more than ? months, it will be treated as full year for purpose of gratuity. In case of seasonal establishment, gratuity is payable I 7 days wages for each season. /section *1(23. Wages s$all #o sist o% basi# (lus D.A/ as (er last !ra& salar*. =o&e"er/ allo&a #es li'e bo us/ #o))issio / =RA/ o"erti)e et#. are ot to be #o si!ere! %or #al#ulatio s. ;se#tio 7,s.<. In case of employees paid on monthly wages basis, per day wages should be calculated by dividing monthly salary by (? days to arrive at daily wages e.g. if last drawn salary of a person 1basic plus G 2 is >s. (,?.. per month, his salary per day will be >s. '.. 1(,?.. divided by '..2. Thus, the employee is entitled to get >s. ',+.. /'+ days multiplied by >s. '.. daily salary3 for every year of completed service. If he has completed ). years of service, he is entitled to get gratuity of >s. *+,... 1>s. ',+.. multiplied by ).2. 8a!imum gratuity payable under the ct is >s. ).+. lakhs 1the ceiling was >s. ',..,... which was increased to (.+. lakhs on (*.:.:7 by an ordinance which was later increased to >s ).+. lakhs while converting the ordinance into ct3. 8 RI8D8 5> TDITH - H BL4 = 8a!imum gratuity payable is >s ).+. lakhs. /0ection *1)23. /Bf course, employer can pay more. 4mployee has also right to

get more if obtainable under an award or contract with employer, as made clear in section *1+23. +o Compulsory insurance of gratuity liability ' 0ection * provides that every employer must obtain insurance of his gratuity liability with LI< or any other insurer. ;owever, 5overnment companies need not obtain such insurance. I% a e)(lo*ee is alrea!* )e)ber o% gratuit* %u ! establis$e! b* a e)(lo*er/ $e $as o(tio to #o ti ue t$at arra ge)e t. I% a e)(lo*er e)(lo*i g )ore t$a 633 (erso s establis$es a a((ro"e! gratuit* %u !/ $e ee! ot obtai i sura #e %or gratuit* liabilit*. + + =o&e"er/ t$is se#tio $as ot *et bee broug$t i to %or#e. =e #e/ (rese tl*/ su#$ #o)(ulsor* i sura #e is ot e#essar*. ,ratuity cannot be attached " 5ratuity payable cannot be attached in e!ecution of any decree or order of any civil, revenue or criminal court, as per section ') of the ct. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

INDUSTRIAL DISPUTES ACT/ 01>2


The ob,ect of the ct is to make provisions for investigation and settlement of industrial disputes. ;owever, it makes other provisions in respect of lay off, retrenchment, closure etc. The purpose is to bring the conflicts between employer and employees to an amicable settlement. / " e Act is ac ie!ing e#actly opposite3. The ct provides machinery for settlement of disputes, if dispute cannot be solved through collective bargaining. -#ndustry. under #ndustrial /isputes Act ' The definition of industry is as follows = Industry means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or avocation of workmen. /section (1,23. Thus, the definition is very wide. The scope is much wider than what is generally understood by the term industry. Thus, many hospitals, educational institutions, universities, charitable institutions and welfare organi%ations have got covered under the ct. -rofessions, clubs, cooperatives, research institutes etc. are also covered. -#ndustry /ispute. and -Wor0man. ' The definition of industrial dispute and workman is as follows $

ICGD0T>I L GI0-DT4 = Industrial dispute means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non$employment or the terms and conditions of employment or with the conditions of labour, of any person. /section (1k23. $ $ 0ection ( provides that dismissal, discharge, retrenchment of even a single workman will be industrial dispute even if no other workman or any union is a party to the dispute. FB>M8 C = Forkman means any person 1including apprentice2 employed in any industry to do any manual, clerical or supervisory work for hire or reward. It includes dismissed, discharged or retrenched person also. ;owever, it does not include 1i2 rmed Aorces i.e. those sub,ect to ir Aorce ct, rmy ct or Cavy ct 1ii2 -olice or employees of prison 1iii2 4mployed in mainly managerial or administrative capacity or 1iv2 person in supervisory capacity drawing wages e!ceeding >s ',?.. per month or functions are is mainly of managerial nature. /section (1!23. Adjudication of disputes = The ct provides for Forks <ommittee in factories employing '.. or more workers. /section )3. The committee will consist of e6ual number of representatives of employer and employees. >epresentatives of employees will be selected in consultation with >egistered Trade Dnion. The Forks <ommittee will first try to settle disputes. If dispute is not solved, it will be referred to <onciliation Bfficer. ;e is appointed by 5overnment. /section *3. The matter may also be referred to Board of <onciliation. /section *3. ;e will try to arrive at fair and amicable settlement acceptable to both parties. If he is unable to do so, he will send report to appropriate 5overnment. /section '(1*23. The 5overnment may then refer the industrial dispute to Board of conciliation, Labour <ourt or Industrial Tribunal. /section '(1+23. 4mployer and employees can voluntarily refer the matter to arbitration. /section '. 3. /This provision is very rarely used by employer and workmen. 5enerally, they prefer the <ourt route3. If no settlement is arrived at, there is three tier system of ad,udication = Labour <ourt, Industrial Tribunal and Cational Tribunal. The order made by them is award. ward means an interim or final determination of any industrial dispute or of any 6uestion relating thereto by any Labour <ourt, Industrial Tribunal or Cational Tribunal. It also includes arbitration award. /section (1b23. The award is re6uired to be published by 0tate9<entral 5overnment within ). days. /section '73. The award becomes effective ). days after its publication. /section '7 3. L BBD> <BD>T = Labour <ourts are constituted by 0tate 5overnments u9s 7. It will be presided over by -residing Bfficer. The Labour <ourt has powers in respect of @ Interpretation of 0tanding Brders @ Oiolation of 0tanding Brders @

Gischarge or dismissal of a workman @ Fithdrawal of any customary concession or privilege @ Illegality or otherwise of a strike or lock$out @ other matters which are not under Industrial Tribunal. /0econd 0chedule to the ct3 >4A4>4C<4 BA GI0-DT4 = ppropriate 5overnment can refer any dispute to Board of <onciliation, <ourt of 4n6uiry, Labour <ourt or Industrial Tribunal. /section '.1'23. ppropriate 5overnment means @ <entral 5overnment in case of railways, docks, IA<I, 40I<, LI<, BC5<, DTI, irport uthority, industry carried on by or under authority of <entral 5overnment @ 0tate 5overnment in case of other industrial disputes /section (1a23. <BD>T9T>IBDC L < C >4GD<4 -DCI0;84CT CG B>G4> >4IC0T T484CT $ s per section '' , the Labour <ourt and Tribunal have wide powers. They can reappraise evidence. They can also see whether the punishment is disproportionate to the gravity of the misconduct proved. If the <ourt or Tribunal is of the view that the punishment is disproportionate, it can impose lesser punishment or even set aside the termination and order reinstatement. $ $ If <ourt orders reinstatement and employer files appeal in ;igher <ourt, the employer is re6uired to pay full wages to the employee during the period of pendency of proceedings with ;igh <ourt or 0upreme <ourt. ;owever, if the workman was gainfully employed elsewhere, <ourt can order that payment of such wages is not to be made. /section '7B3. 04TTL484CT $ 0ettlement means a settlement arrived at in the course of conciliation proceedings. It includes a written agreement between employer and workmen arrived at otherwise than in course of conciliation proceedings 1i.e. outside the conciliation proceedings2. The difference is that settlement arrived at in course of conciliation or an arbitration award or award of labour court or Tribunal binds all parties to industrial dispute including present and future workmen and all parties who were summoned to appear in the proceedings. /section 'E1)23. If settlement is arrived at by mutual agreement, it binds only those who were actually party to agreement. /section 'E1'23. The settlement is binding during the period it is in force. 4ven after that period is over, it continues to be binding, unless a ( month notice of termination is given by one party to another. /section ':1(3. If no period has been specified, settlement is valid for ? months and an award is valid for one year. Lay off) retrenchment and closure ' Lay off means failure, refusal or inability of employer on account of shortage of coal, power or raw materials or accumulation of stock or break down of machinery or natural calamityS to give employment to a workman on muster roll. Lay off means not giving employment within two hours after reporting to work. Lay off can be for half day also. In such case, worker can be asked to come in second half of the shift. /section (1kkk23. A %a#tor* e)(lo*i g 63 or )ore but less t$a 033 e)(lo*ees o a a"erage (er &or'i g !a* #a la* o%% t$e &or')e / &$o $a"e #o)(lete! o e *ear o%

ser"i#e/ b* (a*i g #o)(e satio eJual to 638 o% salar* ,basi# (lus DA. ,se#tio 76C o% IDA.. E)(lo*er #a o%%er $i) alter ate e)(lo*)e t/ i% t$e alter ate e)(lo*)e t !oes ot #all %or a * s(e#ial s'ill or (re"ious eE(erie #e/ a ! la* o%% #o)(e satio &ill ot be (a*able i% e)(lo*ee re%uses to a##e(t t$e alter ate e)(lo*)e t ,se#tio 76E.. bove provisions of compensation for lay off do not apply to 1a2 Industrial establishments employing less than +. workmen 1b2 seasonal industry 1c2 4stablishments employing '.. or more workmen, as in their case, prior approval of ppropriate 5overnment is necessary u9s (+81'2. >4T>4C<;84CT = >etrenchment means termination by the employer of service of a workman for any reason, other than as a punishment inflicted by a disciplinary action. ;owever, retrenchment does not include voluntary retirement or retirement on reaching age of superannuation or termination on account of non$renewal of contract or termination on account of continued ill$health of a workman. /section (1oo23. >etrenchment means discharge of surplus labour or staff by employer. It is not by way of punishment. The retrenchment should be on basis of last in first out basis in respect of each category, i.e. ,unior$most employee in the category 1where there is e!cess2 should be retrenched first. /section (+53. If employer wants to re$employer persons, first preference should be given to retrenched workmen. /section (+;3. worker who has completed one year of service can be retrenched by giving one month notice 1or paying one months salary2 plus retrenchment compensation, at the time of retirement, I '+ days average wages for every completed year of service 1section (+A2. If number of workmen are '.. or more, prior permission of 5overnment is necessary u9s (+C1'23. ppropriate

84 CIC5 BA <BCTICDBD0 04>OI<4 = -rovisions of compensation for lay off and retrenchment are applicable only to workman who is in continuous service for one year. <LB0D>4 = <losure means permanent closing down of a place of employment or part thereof. /section (1cc23. Thus, closure can be of part of establishment also, ?. days notice should be given for closure to 5overnment, if number of persons employed are +. or more. ?. days notice is not necessary if number of persons employed are less than +.. /section (+AA 3. <ompensation has to be given as if the workman is retrenched. /section (+AAA1'23. If number of workmen employed are '.. or more, prior permission of 5overnment is necessary for closure u9s (+$ B.

Provisions for large industries for lay off and closure " Large industries employing '.. or more workmen on an average for preceding '( months cannot lay$off, retrench or close down the undertaking without permission from 5overnment 1sections (+8 to (+$B of Industrial Gisputes ct2. Invariably, such permission is almost never given, whatever may be the merits of the case. +otice of change in conditions of service = 0ection : provides that an employer cannot effect any change in the conditions of service applicable to any workman without giving (' days notice. 0uch notice is not re6uired if there is settlement or award of Labour <ourt or Tribunal. s per fourth schedule to the ct, such (' day notice is re6uired if there is going to be change in wages, wage period, -A contribution, allowances, hours of work and rest intervals, shift timings, new rules of discipline, increase or decrease in number of persons employed in any department or shift. !tri0e and loc0"out = 0trike means a cessation of work by a body of persons employed in any industry, acting in combination, or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment. /section (1623. As (er se#tio 7@/ &or')a s$oul! ot go o stri'e i F !uri g (e !e #* o% #o #iliatio (ro#ee!i gs a ! 2 !a*s t$erea%ter F !uri g (e !e #* o% (ro#ee!i gs be%ore Labour Court/ I !ustrial Tribu al or Natio al Tribu al F Duri g (erio! o% arbitratio (ro#ee!i gs F Duri g (erio! &$e settle)e t or a&ar! is i o(eratio i res(e#t o% t$e )atters #o"ere! b* a&ar! or settle)e t. PRO=IBITION OF STRIAE AND LOCA OUT IN PUBLIC UTILIT4 SER5ICE $ .In case of public utility, employees have to give at least '* days notice for strike. The notice is valid only if strike commences within ? weeks. Btherwise, fresh notice is re6uired. 0imilarly, an employer cannot declare lock out without giving '* days notice. /section ((3. If such notice is received, 5overnment authority should be informed within five days. s per section(1n2, -ublic Dtility 0ervice includes railways, ma,or port and docks, section of industry on the working of which safety of establishment depends, postal9telegraph9 telephone services, industry supplying power9 light9 waterS system of public conservancy or sanitation. /section (1n23. In addition, 5overnment can declare industry specified in 0chedule I as -ublic Dtility 0ervices. 0uch declaration can be made for ? months at a time /section (1n21vi23. /Industries in first schedule include banking, transport, cement, coal, defence establishments, security press, hospitals and dispensaries, oil fields, mining of certain specified ores, foodstuff, cotton te!tiles, iron and steel etc3. LB<M$BDT = Lock$out means temporary closing or a place of employment or the suspension of work, or the refusal by an employer to continue to employ any

number of persons employed by him. /section (1l23. Forkers go on strike, while lock$out is to be declared by employer. $ages during stri%e period - Fages during strike period are payable only if the strike is both legal and ,ustified2, it was held that when lockout by employer is legal and ,ustified, workmen are not entitled to payment of wages for the period during which the lock$out continued. +o wor0 no pay " Pri #i(le o% 9No &or' o (a*: $as bee a##e(te! b* Su(re)e Court. T$e (ri #i(le o% 9 o &or' o (a*: is also a((li#able &$e a )a &as eligible %or (ro)otio but &as ot (ro)ote! a ! i %a#t !i! ot &or' i t$e $ig$er (ost. I su#$ #ase/ $e is ot eligible to get (a* %or $ig$er s#ale ILL45 L 0T>IM4 B> LB<M$BDT = 0trike or lock out in violation of sections (( or () and when it is continuing in violation of order issued by 5overnment u9s '.1)2 1when matter is referred to <onciliation Board or Tribunal2 is illegal. /section (*3. Aine upto >s +. per day to workman and >s ',... to employer can be imposed. In addition, he can be imprisoned upto one month. /section (?3. estrictions on employer pending proceedings ' If any conciliation proceedings or proceedings are pending before arbitrator, labour court or Industrial Tribunal, following restrictions are applicable to employer. CB <; C54 IC <BCGITIBC0 BA 04>OI<4 IC 8 TT4>0 >4L T4G TB GI0-DT4 = 4mployer shall not make any change in condition of service connected to dispute without permission of authority before which proceedings are pending. /section ))1'21a23. <hange which is not related to dispute can be made in accordance with standing orders without any permission. /section ))1(2 1a23 CB >48BO L BA FB>M8 C IC 8 TT4>0 >4L T4G TB GI0-DT4 = 4mployer shall not discharge, dismiss or punish any workman in matter for any misconduct concerned to dispute, without permission of authority before which proceedings are pending. /section ))1'21b23. -unishment which is not connected to dispute can be made in accordance with standing orders without any permission. ->BT4<T4G FB>M8 C $ In every establishment, 'J of total workmen are recogni%ed as -rotected workman u9s ))1)2 1but minimum + and ma!imum '..2. In case of such workmen, order for his dismissal, discharge or punishment cannot be passed without permission of authority before which proceedings are pending, & et er t e issue is related to dispute or not . 0uch permission is re6uired only during the period proceedings are pending and not after main reference is decided.

1nfair Labour Practices B Se#tio 76T (ro$ibits u %air labour (ra#ti#es b* e)(lo*er or &or')a or a tra!e u io . I% a * (erso #o))its u %air labour (ra#ti#e/ $e is (u is$able &it$ %i e u(to Rs 0/333 a ! i)(riso )e t u(to 6 )o t$s. ;se#tio 76U<. Fi%t$ s#$e!ule to A#t gi"es list o% &$at are 9U %air Labour Pra#ti#es:. T$e )aMor are as %ollo&s B IN CASE OF EMPLO4ER + F I ter%eri g i Tra!e U io a#ti"ities F T$reate i g &or')e to re%rai t$e) %ro) tra!e u io a#ti"ities F Establis$ e)(lo*er s(o sore! Tra!e U io F Dis#ourage tra!e u io a#ti"ities b* "arious )ea s F Dis#$arge or !is)iss b* &a* o% "i#ti)iDatio or %alsel* i)(li#ati g &or')a F Abolis$ &or' o% regular ature a ! to gi"e t$at &or' to #o tra#tors F E)(lo* ba!li or #asuals a ! #o ti ue t$e) %or *ears F Re#ruit)e t &or')e !uri g stri'e &$i#$ is ot illegal F A#ts o% %or#e a ! "iole #e F Not i)(le)e ti g settle)e t or agree)e t or a&ar! F Re%use #olle#ti"e bargai i g F Co ti ue illegal lo#'+out IN CASE OF WORAMEN AND TRADE UNIONS + F Su((ort or i stigate illegal stri'e F Coer#e &or')e to Moi or ot to Moi a (arti#ular tra!e u io F T$reate i g or i ti)i!ati g &or')e &$o !o ot Moi stri'e F Re%use #olle#ti"e bargai i g i goo! %ait$ F Coer#i"e a#tio s i #lu!i g 9go slo&:/ 9g$erao:/ 9sJuatti g o &or' (re)ises a%ter &or'i g $ours: et#. F Will%ul !a)age to e)(lo*er:s (ro(ert* F A#ts o% %or#e or "iole #e or i ti)i!atio . GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

INDUSTRIAL EMPLO4MENT ,STANDIN- ORDERS. ACT/ 01>2


There are service conditions or service rules for various employees like 5overnment employees, bank employees, LI< employees etc. The Industrial 4mployment 10tanding Brders2 ct, ':*7 is designed to provide service rules to workmen. The ob,ect of the ct is to re6uire employers in industrial establishments to formally define conditions of employment under them. What are -!tanding Orders. " 0tanding Brders means rules of conduct for workmen employed in industrial establishments. 0tanding orders means rules relating to matters set out in the schedule to the ct. /section (1g23. The schedule to the ct re6uires that following should be specified in 0tanding Brders $ 1a2 classification of workmen i.e. temporary, badli, casual, permanent, skilled etc. 1b2 manner of intimating to workmen working hours, shift working, transfers etc. 1c2 ;olidays 1d2 ttendance and late coming rules 1e2 Leave rules 1f2 Leave eligibility and leave conditions 1g2 <losing and reopening of sections of industrial

establishment 1h2 termination of employment, suspension, dismissal etc. for misconduct and acts or omissions which constitute misconduct 1i2 >etirement age 1,2 8eans of re$dressal of workmen against unfair treatment or wrongful e!actions by employer 1k2 ny other matter that may be prescribed. Coverage of Act " The ct is applicable to all industrial establishments employing ). or more workmen. /section '1)23. Industrial establishment means 1i2 an industrial establishment as defined in section (1i2 of -ayment of Fages ct 1ii2 Aactory as defined in section (1m2 of Aactories ct 1iii2 >ailway 1iv2 4stablishment of contractor who employs workmen for fulfilling contract with owner of an industrial establishment. /section (1e23. Approval of !tanding Orders " 4very employer covered under the ct has to prepare 0tanding Brders, covering the matters re6uired in the 0tanding Brders. Aive copies of these should be sent to <ertifying Bfficer for approval. /section )1'23. <ertifying Bfficer means Labour <ommissioner and any officer appointed by 5overnment to be <ertifying Bfficer. /section (1c23. The <ertifying Bfficer will inform the Dnion and workmen and hear their ob,ections. fter that, he will certify the 0tanding Brders for the industrial establishment. /section +3. Till standing orders are certified, 8odel 0tanding Brder prepared by 5overnment will automatically apply. /section'( 3. Sta !i g or!er s$oul! be !is(la*e! i E glis$ a ! lo#al la guage o s(e#ial oti#e boar!s at or ear e tra #e o% t$e establis$)e t. ;se#tio 1<. Mo!i%i#atio s o% Sta !i g Or!er s$all be !o e b* %ollo&i g si)ilar (ro#e!ure.;se#tio 03<. Sta !i g or!ers are bi !i g o e)(lo*er a ! e)(lo*ee. T$ese are statutoril* i)(ose! #o !itio s o% ser"i#e. =o&e"er/ t$e* are ot statutor* (ro"isio s t$e)sel"es ,)ea i g t$at t$e 9Sta !i g Or!ers: e"e &$e a((ro"e!/ !o ot be#o)e 9la&: i t$e se se i &$i#$ Rules a ! Noti%i#atio s issue! u !er !elegate! legislatio be#o)e a%ter t$e* are (ublis$e! as (res#ribe! %odel !tanding Orders " The ct has prescribed 8odel 0tanding Brders. These are automatically applicable till employer prepares his own 0tanding Brders and these are approved by <ertifying Bfficer. /section '( 3. /isciplinary Action " The most important use of 0tanding Brders is in case of disciplinary action. workman can be punished only if the act committed by him is a misconduct as defined under the 0tanding Brders. The 8odel 0tanding Brders contain such acts like insubordination, disobedience, fraud, dishonesty, damage to employers property, taking bribe, habitual absence or habitual late attendance, riotous behavior, habitual neglect of work, strike in contravention of

rules etc. as misconducts. The <ertified 0tanding Brders may cover other acts as misconduct, if approved by <ertifying Bfficer. !ubsistence Allowance = Fhere a workman is suspended by employer pending investigation or en6uiry into complaints or charges of misconduct against him, the workman shall be paid subsistence allowance e6ual to +.J of wages for first :. days of suspension and 7+J of wages for remaining period till completion of disciplinary proceedings. /section '. 1'23. $ $ Fages has same meaning as under section (1rr2 of Industrial Gisputes ct. /section (1i23. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

MINIMUM WA-ES ACT/ 01>?


The purpose of employments. ct is to provide for fi!ing of minimum rates of wages in certain

F 540 = Fages means all remuneration capable of being e!pressed in terms of money. It includes house rent allowance but does not include @ value of house accommodation, supply of light, water, medical attendance @ Oalue of any other amenity provided, if e!cluded by 5overnment order @ <ontribution to pension fund or provident fund or insurance @ Traveling allowance @ special e!penses incurred by the nature of employment @ 5ratuity payable on discharge. /section (1h23. AIRIC5 BA 8ICI8D8 F 540 = 8inimum wages will be fi!ed by ppropriate 5overnment after following prescribed procedure. The rate fi!ed can be revised periodically. /section )1'23.The rate can be fi!ed on @ time work basis @ piece work basis @ a guaranteed rate when rate is fi!ed on piece work basis and @ overtime rate. /section )1(23. Gifferent minimum wage rates can be fi!ed for @ different scheduled employments @ different class of work in the same scheduled employment @ adults, adolescents, children and apprentices @ Gifferent localities. /section )1)21a23. >ates can be fi!ed on basis of hour, day or month, or even larger period. /section )1)21b23. The rate shall consist of basic rate of wages with or without allowance for cost of living allowance based on cost of living inde! number. n all inclusive rate allowing for basic wage, cost of living allowance and cash value of concession can also be fi!ed. /section *3. IT I0 0DAAI<I4CT IA TBT L F 540 - IG >4 8B>4 T; C 8ICI8D8 F 540 $ 4ven if 0tate 5overnment notification prescribes variable dearness allowance which is linked with cost of living inde!, amount paid on basis of G is not to be taken as an independent component of minimum wages, but as part and parcel of process of computing minimum wages. ;ence, in cases where

employer is paying total sum which is higher than minimum rates of wages fi!ed under the ct including the cost of living inde! 1OG 2, he is not re6uired to pay OG separately. Thus, even if rates fi!ed by 0tate 5overnment indicate basic and G separately, it is not necessary to show them separately by employer in his wage sheet. It is sufficient if employer pays total amount which is e6ual to or more than total minimum wages 1including G 2 as specified by 0tate 5overnment in a notification. EMPLO4ER TO CLOSE UNIT IF =E CANNOT AFFORD TO PA4 MINIMUM WA-ES + I% a e)(lo*er #a ot (a* )i i)u) &ages/ $e $as to #lose !o& t$e u !erta'i g. Pa*i g #a(a#it* is ot rele"a t #o si!eratio %or rate o% )i i)u) &ages. Cost o% li"i g a ! ge eral &ages i lo#alit* are rele"a t. Mi i)u) &ages are (a*able irres(e#ti"e o% %i a #ial (ositio o% i !i"i!ual e)(lo*er. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

PA4MENT OF WA-ES ACT/ 01@6


The ct is to regulate payment of wages to certain class of employed persons. The ct applies to payment of wages to persons employed in factory or railways. It also applies to any industrial or other establishment specified in section (1ii2. /section '1*23. Aactory means factory as defined in section (1m2 of Aactories ct. Industrial or other establishment specified in section (1ii2 are $ @ Tramway or motor transport services @ ir transport services @ Gock wharf or ,etty @ Inland vessels @ 8ines, 6uarry or oil$field @ -lantation @ Forkshop in which articles are produces, adopted or manufactured. The ct can be e!tended to other establishment by 0tate9<entral 5overnment. -resently, the ct applies to employees drawing wages upto >s ',?... /section '1?23. The limit is being increased to >s ?.+.. by amending the ct. 4very employer is responsible for payment to persons employed by him on wages. /section )3. 84 CIC5 BA F 540 $ Fages means all remuneration e!pressed in terms of money and includes remuneration payable under any award or settlement, overtime wages, wages for holiday and any sum payable on termination of employment. ;owever, it does not include bonus which does not form part of remuneration payable, value of house accommodation, contribution to -A, traveling allowance or gratuity. /section (1vi23

=OW WA-ES S=OULD BE PAID + Wages #a be (ai! o !ail*/ &ee'l*/ %ort ig$tl* or )o t$l* basis/ but &age (erio! #a ot be )ore t$a a )o t$. ;se#tio ><. Wages s$oul! (a* o a &or'i g !a*. Wages are (a*able o or be%ore 2t$ !a* a%ter t$e 9&age (erio!:. I #ase o% %a#tories e)(lo*i g )ore t$a 0/333 &or'ers/ &ages #a be (ai! o or be%ore 03t$ !a* a%ter 9&age (erio!: is o"er. ;se#tio 6,0.<. ;Nor)all*/ 9&age (erio!: is a 9)o t$:. T$us/ or)all*/ &ages s$oul! be (ai! b* 2t$ o% %ollo&i g )o t$ a ! b* 03t$ i% u)ber o% e)(lo*ees is 0/333 or )ore<. Wages s$oul! be (ai! i #oi s a ! #urre #* otes. =o&e"er/ &it$ aut$oriDatio %ro) e)(lo*ee/ it #a be (ai! b* #$eJue or b* #re!iti g i $is ba ' a##ou t. ;se#tio 6<. G4GD<TIBC0 -4>8I00IBL4 $ Geduction on account of absence of duty, fines, house accommodation if provided, recovery of advance, loans given, income ta!, provident fund, 40I contribution, LI< premium, amenities provided, and deduction by order of <ourt etc. is permitted. 8a!imum deduction can be +.J. ;owever, ma!imum deduction upto 7+J is permissible if deduction is partly made for payment to cooperative society. /section 73. AIC40 = 0pecific notice specifying acts and omissions for which fine can be imposed should be e!hibited on notice board etc. 0uch notice can be issued only after obtaining specific approval from 0tate 5overnment. Aine can be imposed only after giving employee a personal hearing. Aine can be ma!imum )J of wages in a month. Aine cannot be recovered in installments. /section E3. GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

TRADE UNIONS ACT/ 0176


The ob,ect of Trade Dnions ct, ':(? is to provide for registration of Trade unions and to define law relating to registered trade unions in certain aspects. (rade 1nion B Trade Dnion means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business. It includes federation of two or more trade unions. /section (1h23. Thus, technically, there can be union of employers also, though, almost universally, the term trade union is associated with union of workmen or employees.

Trade dispute means any dispute between workmen and employers or between workmen and workmen, or between employers and employers. ;owever, it should be connected with employment or non$employment, or the conditions of labour, of any person. Forkman means all persons employed in trade or industry, whether or not in the employment of the employer with whom the trade dispute arises. /section (1g23. ny seven or more members of a Trade Dnion can apply for registration, by subscribing their names to rules of trade Dnion and complying with provisions of the ct for registration of Trade Dnion. /section *1'23. >ight and liabilities of a >egistered Trade Dnion are specified in section '+. egistration of trade union = ppropriate 5overnment shall appoint a person as >egistrar of Trade Dnions for each 0tate. /section )1'23. pplication for registration is re6uired to be made signed by at least 7 members. pplication should be accompanied by rules of trade union. and other re6uired details. /section +3. >ules should contain provisions as prescribed in section ?. >egistrar shall register Trade Dnion and enter particulars in the register maintained by him. /section E3. Trade Dnion will have a registered office. /section '(3. Other provisions = Bther important provisions are as follows $ T> G4 DCIBC I0 BBGH <B>-B> T4 = >egistered Trade Dnion shall be a body corporate by the name under which it is registered. It will have perpetual succession and a common seal. It can ac6uire both movable and immovable property in its own name and contract in its own name. /section ')3. ADCG AB> -BLITI< L -D>-B040 $ Trade Dnion can constitute separate fund for political purposes. /section '?3. 4R4<DTIO4 <B88ITT44 CG BAAI<4 B4 >4>0 BA DCIBC = The management of trade union will be conduced by e!ecutive. It is a body by whatever name called. /section (1a23. Thus, controlling body of Trade Dnion may be called as 4!ecutive Body or 5overning Body or 8anaging <ommittee or any such name. The members of the e!ecutive body are termed as Bfficer Bearers. /section (1b23. t least +.J of office bearers of registered trade union shall be persons actually engaged or employed in an industry wit which the trade union is connected. /section ((3. CCD L >4TD>C0 = 4very registered trade union will prepare a general statement of assets and liabilities of trade Dnion as on )'st Gecember. The statement will be sent to >egistrar along with information about change of office bearers during the year. /section (E1'23.

I88DCITH A>B8 ->BOI0IBC BA <>I8IC L <BC0-I> <H IC T> G4 GI0-DT40 = Bffice bearer of a trade union shall not be liable to punishment u9s '(.B1(2 of Indian -enal <ode in respect of agreement made between members for purpose of ob,ect of trade union, unless the agreement is agreement to commit an offence. /section '73. $ $ Thus, office bearer of trade union cannot be prosecuted for criminal conspiracy in respect of agreement relating to ob,ect of trade union. I88DCITH A>B8 <IOIL 0DIT = civil suit or other legal proceeding is not maintainable against any registered trade union or office bearer in furtherance of trade union activity on the ground that 1a2 such act induces some person to break a contract of employment or 1b2 It is in interference with the trade, business or employment of some other person. /section 'E1'23. RE-ISTRATION DOES NOT MEAN RECO-NITION B Registratio a ! re#og itio o% U io b* a e)(lo*er are i !e(e !e t issues. Registratio o% Tra!e U io &it$ Registrar $as ot$i g to !o &it$ its re#og itio i a (arti#ular %a#tor*C#o)(a *. Re#og itio o% Tra!e U io is ge erall* a )atter o% agree)e t bet&ee e)(lo*er a ! tra!e u io . I States li'e Ma$aras$tra a ! Ma!$*a Pra!es$/ t$ere are s(e#i%i# legal (ro"isio s %or re#og itio o% a tra!e u io . GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

WORAMEN:S COMPENSATION ACT/ 017@


This is a very old enactment for providing social security to workmen. Dnder this ct, a workman who dies or suffers disablement 1partial or total2 due to accident is entitled to get compensation from employer. Act does not apply where wor0man covered under E!# Act " 0ince a workman is entitled to get compensation from 40I<, a workman covered under 40I ct is not entitled to get compensation under Forkmens <ompensation ct, as per section +) of 40I<. ;owever, ct is applicable to factories, mines, plantations, transport establishments, construction work etc. 1who are not covered under 40I ct2. Employer.s liability for compensation = n employer is liable to pay compensation if personal in,ury is caused to a workman by accident arising out of and in the course of his employment. /section )1'23. n employer is not liable in following cases =

In,ury which does not result in total or partial disablement of workman for a period e!ceeding ) days In,ury caused by an accident directly attributable to @ workman under influence of drinks or drugs @ willful disobedience of e!press orders for safety @ willful removal of safety guard or device. /4ven if such case, if the workman dies or suffers permanent total disablement, the employer will be liable3.

48-LBH84CT GI04 04 = 4mployer is liable if a workman contracts any specified occupational disease, while he is in service of employer for at least ? months. /section )1(23. 48-LBH4>0 A DLT I0 I88 T4>I L $ The compensation is payable even when there was no fault of employer. <B8-4C0 TIBC - H BL4 4O4C IA FB>M8 C F 0 < >4L400 $ <ompensation is payable even if it is found that the employee did not take proper precautions. n employee is not entitled to get compensation only if 1 a2 he was drunk or had taken drugs 1 b2 he willfully disobeyed orders in respect of safety 1 c2 he willfully removed safety guards of machines. ;owever, compensation cannot be denied on the ground that workman was negligent or careless. CD8B4> BA FB>M84C 48-LBH4G I0 CBT <>IT4>I = In definition of workman in schedule II, in most of the cases, number of workmen employed is not the criteria. In most of cases, employer will be liable even if ,ust one workman is employed. The ct applies to a workshop even if it employs less than (. workmen and is not a factory under Aactories ct. Wor0man under the Act = Forkman means @ railway servant @ crew of ship @ <rew of aircraft @ Griver, cleaner, helper or mechanic of motor vehicle @ -erson recruited abroad @ 4mployed in capacity specified in 0chedule II. The 0chedule II covers many activities like manufacturing process, e!plosives, mine, ship, loading9unloading, construction, electricity generation and distribution, drivers, horticulture, circus etc. <ultivation of land, fishing, rearing of live stock is covered if more than (+ persons are employed. -ersons employed outside are also covered. ;owever, persons employed in clerical capacity are e!cluded. Compensation payable under the Act ' 8ode of computation of compensation is given in section * of the ct. <ompensation is payable to workmen. It is payable to dependents of workman in case of death. In case of death resulting from in,ury, minimum compensation is >s. E.,.... 8a!imum compensation is an amount e6ual to +.J of monthly wages of deceased workman multiplied by factor depending on age 18ore the age, lower the compensation2. If salary e!ceeds >s *,..., it will be considered as >s *,...

only for purpose of calculating the compensation. 8a!imum compensation is >s. *,+7,.E. if a person at the time of death was '? years of age an. In addition, funeral e!penses upto >s (,+.. are payable. In case of permanent total disablement, minimum compensation is >s. :.,.... 8a!imum compensation is an amount e6ual to ?.J of monthly wages of deceased workman multiplied by factor depending on age 18ore the age, lower the compensation2. 8a!imum compensation payable is >s. +,*E,*:?, if workman was '? years of age at the time of accident. In case of permanent partial disablement, compensation is payable on basis of percentage of loss of earning capacity. Co compensation is payable if disablement is upto only three days. ->BT4<TIBC TB <B8-4C0 TIBC $ The compensation paid under the protected, i.e. it cannot be attached or assigned. /section :3. ct is

Liability of Principal Employer " -rincipal 4mployer is liable to pay the amount of compensation for the in,ury suffered by workman employed through contractor, if the accident arises as a result of accident arising out of and during the course of employment. /section '(3. Payment of compensation only through Commissioner ' <ommissioner for Forkmens <ompensation is appointed by 5overnment. The compensation must be paid only through the <ommissioner in case of death or total disablement. ny lump sum payment to workman under the ct must be made only through <ommissioner. Girect payment to workman or his dependents is not recogni%ed at all as compensation. ;owever, in case of death, if employer has paid some compensation to dependent, that will be refunded to employer. /section E1'23. EE(e !iture )a!e b* e)(lo*er %or )e!i#al treat)e t o% &or')a #o si!ere! %or (ur(oses o% t$e #o)(e satio . is ot

Employees entitled " 4very employee, including those employed through contractor, but e!cluding casual employees who is engaged for purpose of employers business is eligible. The ct does not cover employees employed in clerical capacity. ;owever, workmen in manufacturing processes, mines, ships, construction, tractor or mechanical appliances in agriculture, circus etc. and also drivers, watchmen etc. are covered. The compensation is payable if accident arises out of and during the cause of employment, and such accident causes either death or disablement. #njury arising out of and during the course of employment " The employee is eligible to get disablement benefit only when the in,ury arises out of and during the course of employment. 0imilarly, a workman is entitled to get compensation only if accident is arising out of and during the course of employment.

GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the act and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

PUNIS=MENT
ny punishment of suspension or dismissal can be imposed after conducting a Gomestic 4n6uiry. -rinciples of natural ,ustice have to be followed. Termination of an employee without following principles of natural ,ustice is violative of rticle (' of For (ro(er #o !u#t o% e Juir* ,0. E)(lo*ee s$oul! be i %or)e! o% #$arges le"ele! agai st $i) ,7. Wit esses s$oul! be or!i aril* eEa)i e! be%ore $i). ,@. T$e e)(lo*ee s$oul! be gi"e %air o((ortu it* to #ross eEa)i e t$e &it essesL i #lu!i g $i)sel% ,>. T$e e Juir* o%%i#er s$oul! re#or! $is %i !i gs &it$ reaso s. The workman is issued with a 0how <ause Cotice giving details of charges of misconduct against him. ;e has to give his reply. Then, en6uiry into charges is conducted by an 4n6uiry Bfficer appointed by 8anagement. 0uch 4n6uiry Bfficer can be an employee of the company or an outsider. The workman can defend himself before the 4n6uiry Bfficer or he can be defended by his co$ worker or a Dnion >epresentative. The workman is not allowed to engage a lawyer to defend his case. fter en6uiry, the 4n6uiry Bfficer has to give his findings and state whether he finds the workman guilty or not guilty. ;e should give reasons for his views. ;owever, the 4n6uiry Bfficer should not give his opinion about the punishment that should be imposed on the workman. <opy of the report of 4n6uiry Bfficer has to be given to the workman. The workman has right to state his case on the basis of 4n6uiry >eport e.g. the workman may agree that he is guilty but may plead for leniency, or he may point out discrepancies in the report of 4n6uiry Bfficer. fter the reply of workman, the authori%ed 8anager will go through en6uiry papers, report of 4n6uiry Bfficer and observations9reply of workman on the report of 4n6uiry Bfficer. The uthori%ed 8anager will then issue suitable order. The Gisciplinary uthority should not be lower in rank or grade than the ppointing uthority GI0-L H BC CBTI<4 BB >G $ notice containing abstract of the punishment rules and the rules made there$under, in 4nglish and local language should be displayed. Came and address of Aactories Inspector and the certifying surgeon should also be displayed on notice board. /section '.E1'23.

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