NATIONAL INSTITUTE OF FASHION TECHNOLOGY

CHENNAI

DEPARTMENT OF FASHION TECHNOLOGY

HUMAN RESOURCE
MANAGEMENT
ASSIGNMENT – III
(The enforcement and benefits of Labour Laws)

Submitted to: Submitted by:

Ms. S. A. Shanthi Disha Pande
Associate Professor (080182)
DFT DFT-6

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 ACKNOWLEDGEMENT

First of all we would thank the NIFT curriculum for adding the subject of
Human Resource Management in our curriculum. We would like to thank our Human
Resource Management faculty Mrs. S. A. Santhi for giving us this assignment of
writing a report on enforcement and benefits of Labour Laws. We would also like to
thank her for the valuable advice and support she has given us in the writing and
completing the report.

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 CONTENTS

S. No. Particulars Page No.

1 Laws on Working Conditions 04-16

• The Factory Act, 1948

• Contract Labor (Regulation and
Abolition Act 1986)

• Child Labor (Prohibition and Regulation

Act 1986)
2 Industrial Relations Laws 17-22

• Trade Union Act, 1926

• Industrial Dispute Act, 1947
• Industrial Discipline and Misconduct

3 Wages and Labour Laws 23-29

• Minimum Wages Act, 1948

• Payment Of Wages Act, 1936
• Payment Of bonus Act,
• Equal Remuneration Act,

4 Laws for Labour Welfare and Social 30-44

Security

• The Workmen’s Compensation Act

1948
• The maternity benefit Act 1961
• The employer’s provident fund and MP
Act 1952
• The payment of gratuity 1972
5 Experience 45
6 Bibliography 46

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I. LAWS ON WORKING
CONDITIONS

The Factories Act, 1948

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Applicability of the Act
Any premises whareon 10 or more persons with the aid of power or 20 or more
workers are/were without aid of power working on any day preceding 12 rnonths,
wherein Manufacturing process is being carried on.

Employer to ensure health of workers pertaining to

• Cleanliness
• Disposal of wastes and effluents
• Overcrowding
• Artificial humidification
• Lighting
• Drinking water
• Spittoons

Registration & Renewal of Factories

To be granted by Chief Inspector of Factories on submission of prescribed form, fee
and plan.

Safety Measures
• Fencing of machinery
• Work on or near machinery In motion.
•Employment prohibition of young persons on dangerous machines,
•Striking gear and devices for cutting off power.
•Se if-acting machines,
•Casing of new machinery.
•Prohibition of employment of women and children near cotton-openers.
• Hoists and lifts.

Working Hours, Spread Over and Overtime of Adults

• Weekly hours, not more than 48.
• Daily hours not more than 9 hours.
• Intervals for rest at least 1/2 hour on working for 5 hours.
• Spreadover not more than 101/2 hours.
• Overlapping shifts prohibited.
• Extra Wages for overtime double than normal rate of wages.
• Restrictions on employment of women before 6 A.M. and beyond 7 P.M.

Welfare Measures
• Washing facilities
• Facilities for storing and drying clothing.
• First-aid appliances-one first aid box (not less than one) for every 150 workers
• Canteens when there are 250 or more workers.
• Shelters, rest rooms and lunch rooms when there are 150 or more workers.
• Creches when there are 30 or more women workers.
• Welfare office when there are 500 or more workers.

Employment of Young Persons

• Prohibition of employment of young children e.g. 14 years.

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• Non-adult workers to Carry tokens e.g. certificate of fitness.
• First-aid appliances-one first aid box (not less than one) for every 150 workers

Annual Leave with Wages

• A worker having worked for 240 days @ one day for every 20 days and for a child
one day for working of 15 days,
• Accumulation of leave for 30 days.

Contract Labour (Regulation and Abolition) Act in 1970

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Contract labour remained ignored for a long time. Neither the contractor nor the
principal employer cared for contract labour. The Parliament, therefore, passed the
Contract Labour (Regulation and Abolition) Act in 1970 to prevent the exploitation of
contract labour. The policy of the Act is to prohibit the employment of contract labour
and wherever this is not possible, to improve the conditions of work of contract
labour. Apart from providing for prohibition of employment of contract labour, the
Act, therefore provides for health and welfare of the contract labour.

Object of the Act

To regulate the employment of contract labor in certain establishments and to provide
for its abolition in certain circumstances and for matters connected therewith.

Applicability
• Every establishment in which 20 more workmen are employed or where
employed on any day of the preceding twelve months as contract labour.
• Every contractor who employs or who employed on any day of the preceding
twelve months 20 ore more workmen {Section 1}

Registration of Establishment
• Principal employer employing 20 or more workers through the contractor or
the contractor(s) on deposit of required fee in Form 1

Prohibition of Employment of Contract Labour

Only by the appropriate Government through issue of notification after consultation
with the Board (and not Courts) can order the prohibition of employment of contract
labor. {Section 10}

Revocation of Registration
When obtained by misrepresentation or suppression of material facts etc. after
opportunity to the principal employer {Section 9}

Revocation or Suspension & Amendment of Licences

• When obtained by misrepresentation or suppression of material facts
• Failure of the contractor to comply with the conditions or contravention of Act
or the Rules {Section 14}

Licensing ofContractor
• Engaging 20 or more than 20 workers and on deposit of required fee in Form
IV
• Valid for specified period {Section 12, Rule

Welfare measures to be taken by the Contractor

• Contract labour either one hundred or more employed by a contractor for one
or more canteens shall be provided and maintained
• First Aid facilities
• Number of rest-rooms as required under the Act
• Drinking water, latrines and washing facilities {Section 16 & Section 17}

Laws, Agreement or standing orders inconsistent with the Act-Not Permissible

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Unless the privileges in the contract between the parties or more favorable than the
prescribed in the Act, such contract will be invalid and the workers will continue to
get more favorable benefits {Section 20}

Liability of Principal Employer

• To ensure provision for canteen, restrooms, sufficient supply of drinking
water, latrines and urinals, washing facilities
• Principal employer entitled to recover from the contractor for providing such
amenities or to make deductions from amount payable {Section 20}

Registers of Contractors
• Principal employer
• To maintain a register of contractor in respect of every establishment in Form XII
{Rule 74}
• Contractor
• To maintain register of workers for each registered establishment in Form XIII
• To issue an employment card to each worker in Form XIV
• To issue service certificate to every workman on his termination in Form XV {Rule
75, 76 & 77}

Muster Roll, Wages Register, Deduction Register and Overtime Register

by Contractor
• Maintain Muster Roll and a Register of Wages in Form XVI & Form XVII
respectively when combined
• Register or wage-cum-Muster Roll in Form XVII where the wage period is a
fortnight or less
• Maintain a Register of Deductions for damage or loss, Register of Fines and
Register of Advances in Form XX, Form XXI & Form XXII respectively
• Maintain a Register of Overtime in Form XXIII
• To issue wage slips in Form XIX, to the workmen at least a day prior to the
disbursement of wages.
• Obtain the signature or thumb impression of the worker concerned against the
entries relating to him on the Register of wages or Muster Roll-Cum-Wages
Register
• When covered by Payment of Wages Act, register and records to be
maintained under the rules
• Muster Roll, Register of wages, Register of Deductions, Register of Overtime,
Register of Fines, Register of Advances, Wage Slip {Rule 79}
• To display an abstract of the Act and Rules in English & Hindi and in the
language spoken by the Majority of workers in such forms as may be approved
by appropriate authority {Rule 80}
• To display notices showing rates of wages, hours of work, wage period, dates
of payment, names and address of the inspector and to send copy to
the inspector and any change for with {Rule 81}
PENALTIES
• For obstructing the inspector or failing to produce registers etc. 3 moths'
imprisonment or fine upto Rs. 500 or both {Section 22}
• For violation of the provisions of Act or the Rules, imprisonment of 3
Months or fine upto Rs. 1000. On continuing contravention, additional fine
upto Rs. 100 per day {Section 23}

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THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986

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An Act to prohibit the engagement of children in certain employments and to regulate
the conditions of work of children in certain other employments.
BE it enacted by Parliament in the Thirty-seventh Year of the Republic of India as
follows:--

1. Short title, extent and commencement.

(1) This Act may be called the Child Labour (Prohibition and Regulation) Act, 1986.
(2) It extends to the whole of India.
(3) The provisions of this Act, other than Part III, shall come into force at once, and
Part III shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be appointed for
different States and for different classes of establishments.

2. Definitions.
In this Act, unless the context otherwise requires,--
(i) "appropriate Government" means, in relation to an establishment under the control
of the Central Government or a railway administration or a major port or a mine or
oilfield, the Central Government, and in all other cases, the State Government;
(ii) "child" means a person who has not completed his fourteenth year of age;
(iii) "day" means a period of twenty-four hours beginning at mid-night;
(iv) "establishment" includes a shop, commercial establishment, workshop, farm,
residential hotel, restaurant, eating house, theatre or other place of public amusement
or entertainment;
(v) "family", in relation to an occupier, means the individual, the wife or husband, as
the case may be, of such individual, and their children, brother or sister of such
individual;
(vi) "occupier", in relation to an establishment or a workshop, means the person who
has the ultimate control over the affairs of the establishment or workshop;
(vii) "port authority" means any authority administering a port;
(viii) "prescribed" means prescribed by rules made under section 18;
(ix) "week" means a period of seven days beginning at midnight on Saturday night or
such other night as may be approved in writing for a particular area by the Inspector;
(x) "workshop" means any premises (including the precincts thereof) wherein any
indusrial process is carried on, but does not include any premises to which the
provisions of section 67 of the Factories Act, 1948 (63 of 1948), for the time being,
apply.

3. Prohibition of employment of children in certain occupations and processes.

No child shall be employed or permitted to work in any of the occupations set forth in
Part A of the Schedule or in any workshop wherein any of the processes set forth in
Part B of the Schedule is carried on:
Provided that nothing in this section shall apply to any workshop wherein any process
is carried on by the occupier with the aid of his family or to any school established by,
or receiving assistance or recognition from, Government.

4. Power to amend the Schedule.

The Central Government, after giving by notification in the Official Gazette, not less
than three months notice of its intention so to do, may, by like notification, add any
occupation or process to the Schedule and thereupon the Schedule shall be deemed to
have been amended accordingly.

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5. Child Labour Technical Advisory Committee.
(1) The Central Government may, by notification in the Official Gazette, constitute an
advisory committee to be called the Child Labour Technical Advisory Committee
(hereafter in this section referred to as the Committee) to advise the Central
Government for the purpose of addition of occupations and processes to the Schedule.
(2) The Committee shall consist of a Chairman and such other members not exceeding
ten, as may be appointed by the Central
Government.
(3) The Committee shall meet as often as it may consider necessary and shall have
power to regulate its own procedure.
(4) The Committee may, if it deems it necessary so to do, constitute one or more sub-
committees and may appoint to any such subcommittee, whether generally or for the
consideration of any particular matter, any person who is not a member of the
Committee.
(5) The term of office, of the manner of filling casual vacancies in the office of, and
the allowances, if any, payable to, the Chairman and other members of the Committee,
and the conditions and restrictions subject to which the Committee may appoint any
person who is not a member of the Committee as a member of any of its
subcommittees shall be such as may be prescribed.

6. Application of Part.
The provisions of this Part shall apply to an establishment or a class of establishments
in which none of the occupations or processes referred to in section 3 is carried on.

7. Hours and period of work.

(1) No child shall be required or permitted to work in any establishment in excess of
such number of hours as may be prescribed for such establishment or class of
establishments.
(2) The period of work on each day shall be so fixed that no period shall exceed three
hours and that no child shall work for more than three hours before he has had an
interval for rest for at least one hour.
(3) The period of work of a child shall be so arranged that inclusive of his interval for
rest, under sub-section (2), it shall not be spread over more than six hours, including
the time spent in waiting for work on any day.
(4) No child shall be permitted or required to work between 7 p.m and 8 a.m.
(5) No child shall be required or permitted to work overtime.
(6) No child shall be required or permitted to work in any establishment on any day on
which he has already been working in another establishment.

8. Weekly holidays.
Every child employed in an establishment shall be allowed in each week, a holiday of
one whole day, which day shall be specified by the occupier in a notice permanently
exhibited in a conspicuous place in the establishment and the day so specified shall not
be altered by the occupier more than once in three months.

9. Notice to Inspector.

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(1) Every occupier in relation to an establishment in which a child was employed or
permitted to work immediately before the date of commencement of this Act in
relation to such establishment shall, within a period of thirty days from such
commencement, send to the Inspector within whose local limits the establishment is
situated, a written notice containing the following particulars, namely:--
(a) the name and situation of the establishment;
(b) the name of the person in actual management of the establishment;
(c) the address to which communications relating to the establishment should be sent;
and
(d) the nature of the occupation or process carried on in the establishment.
(2) Every occupier, in relation to an establishment, who employs, or permits to work,
any child after the date of commencement of this Act in relation to such establishment,
shall, within a period of thirty days from the date of such employment, send to the
Inspector within whose local limits the establishment is situated, a written notice
containing the particulars as are mentioned in sub-section (1).
Explanation.--For the purposes of sub-sections (1) and (2), "date of commencement of
this Act, in relation to an establishment" means the date of bringing into force of this
Act in relation to such establishment.
(3) Nothing in sections 7, 8 and 9 shall apply to any establishment wherein any
process is carried on by the occupier with the aid of his family or to any school
established by, or receiving assistance or recognition from, Government.

10. Disputes as to age.

If any question arises between an Inspector and an occupier as to the age of any child
who is employed or is permitted to work by him in an establishment, the question
shall, in the absence of a certificate as to the age of such child granted by the
prescribed medical authority, be referred by the Inspector for decision to the
prescribed medical authority.

11. Maintenance of register.

There shall be maintained by every occupier in respect of children employed or
permitted to work in any establishment, a register to be available for inspection by an
Inspector at all times during working hours or when work is being carried on in any
such establishment, showing--
(a) the name and date of birth of every child so employed or permitted to work;
(b) hours and periods of work of any such child and the intervals of rest to which he is
entitled;
(c) the nature of work of any such child; and
(d) such other particulars as may be prescribed.

12. Display of notice containing abstract of sections 3 and 14.

Every railway administration, every port authority and every occupier shall cause to be
displayed in a conspicuous and accessible place at every station on its railway or
within the limits of a port or at the place of work, as the case may be, a notice in the
local language and in the English language containing an abstract of sections 3 and 14.

13. Health and safety.

(1) The appropriate Government may, by notification in the Official Gazette, make
rules for the health and safety of the children employed or permitted to work in any
establishment or class of establishments.

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(2) Without prejudice to the generality of the foregoing provisions, the said rules may
provide for all or any of the following matters, namely:--
(a) cleanliness in the place of work and its freedom from nuisance;
(b) disposal of wastes and effluents;
(c) ventilation and temperature;
(d) dust and fume;
(e) artificial humidification;
(f) lighting;
(g) drinking water;
(h) latrine and urinals;
(i) spittoons;
(j) fencing of machinery;
(k) work at or near machinery in motion;
(l) employment of children on dangerous machines;
(m) instructions, training and supervision in relation to employment of children on
dangerous machines;
(n) device for cutting off power;
(o) self-acting machines;
(p) easing of new machinery;
(q) floor, stairs and means of access;
(r) pits, sumps, openings in floors, etc.;
(s) excessive weights;
(t) protection of eyes;
(u) explosive or inflammable dust, gas, etc.;
(v) precautions in case of fire;
(w) maintenance of buildings; and
(x) safety of buildings and machinery.

14. Penalties.
(1) Whoever employs any child or permits any child to work in contravention of the
provisions of section 3 shall be punishable with imprisonment for a term which shall
not be less than three months but which may extend to one year or with fine which
shall not be less than ten thousand rupees but which may extend to twenty thousand
rupees or with both.
(2) Whoever, having been convicted of an offence under section 3, commits a like
offence afterwards, he shall be punishable with imprisonment for a term which shall
not be less than six months but which may extend to two years.
(3) Whoever--
(a) fails to give notice as required by section 9; or
(b) fails to maintain a register as required by section 11 or makes any false entry in
any such register; or
(c) fails to display a notice containing an abstract of section 3 and this section as
required by section 12; or
(d) fails to comply with or contravenes any other provisions of this Act or the rules
made there under shall be punishable with simple imprisonment which may extend to
one month or with fine which may extend to ten thousand rupees or with both.

15. Modified application of certain laws in relation to penalties.

(1) Where any person is found guilty and convicted of contravention of any of the
provisions mentioned in sub-section (2), he shall be liable to penalties as provided in

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sub-sections (1) and (2) of section 14 of this Act and not under the Acts in which those
provisions are contained.
(2) The provisions referred to in sub-section (1) are the provisions mentioned below:--
(a) section 67 of the Factories Act, 1948 (63 of 1948);
(b) section 40 of the Mines Act, 1952 (35 of 1982);
(c) section 109 of the Merchant Shipping Act, 1958 (44 of 1958); and
(d) section 21 of the Motor Transport Workers Act, 1961 (27 of 1961).

16. Procedure relating to offences.

(1) Any person, police officer or Inspector may file a complaint of the commission of
an offence under this Act in any court of competent jurisdiction.
(2) Every certificate as to the age of a child which has been granted by a prescribed
medical authority shall, for the purposes of this Act, be conclusive evidence as to the
age of the child to whom it relates.
(3) No court inferior to that of a Metropolitan Magistrate or Magistrate of the first
class shall try any offence under this Act.

17. Appointment of Inspectors.

The appropriate Government may appoint Inspectors for the purposes of securing
compliance with the provisions of this Act and any Inspector so appointed shall be
deemed to be a public servant within the meaning of the Indian Penal Code (45 of
1860).

18. Power to make rules.

(1) The appropriate Government may, by notification in the Official Gazette and
subject to the condition of previous publication, make rules for carrying into effect the
provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters, namely:--
(a) the term of office of, the manner of filling casual vacancies of, and the allowances
payable to the Chairman and members of the Child Labour Technical Advisory
Committee and the conditions and restrictions subject to which a non-member may be
appointed to a sub-committee under sub-section (5) of section 5;
(b) number of hours for which a child may be required or permitted to work under
sub-section (1) of section 7;
(c) grant of certificates of age in respect of young persons in employment or seeking
employment, the medical authorities which may issue such certificate, the form of
such certificate, the charges which may be made there under and the manner in which
such certificate may be issued: Provided that no charge shall be made for the issue of
any such certificate if the application is accompanied by evidence of age deemed
satisfactory by the authority concerned;
(d) the other particulars which a register maintained under section 11 should contain.

19. Rules and notifications to be laid before Parliament or State legislature.

(1) Every rule made under this Act by the Central Government and every notification
issued under section 4, shall be
laid, as soon as may be after it is made or issued, before each House of Parliament,
while it is in session for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses

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agree in making any modification in the rule or notification or both Houses agree that
the rule or notification should not be made or issued, the rule or notification shall
thereafter have effect only in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule or notification.
(2) Every rule made by a State Government under this Act shall be laid as soon as may
be after it is made, before the legislature of that State.

20. Certain other provisions of law not barred.

Subject to the provisions contained in section 15, the provisions of this Act and the
rules made there under shall be in addition to, and not in derogation of, the provisions
of the Factories Act, 1948 (63 of 1948), the Plantations Labour Act, 1951 (69 of 1951)
and the Mines Act, 1952 (35 of 1952).

21. Power to remove difficulties.

(1) If any difficulty arises in giving effect to the provisions of this Act, the Central
Government may, by order published in the Official Gazette, make such provisions
not inconsistent with the provisions of this Act as appear to it to be necessary or
expedient for removal of the difficulty: Provided that no such order shall be made after
the expiry of a period of three years from the date on which this Act receives the
assent of the President.
(2) Every order made under this section shall, as soon as may be after it is made, be
laid before the Houses of Parliament.

22. Repeal and savings.

(1) The Employment of Children Act, 1938 (26 of 1938) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken or purported to
have been done or taken under the Act so repealed shall, in so far as it is not
inconsistent with the provisions of this Act, be deemed to have been done or taken
under the corresponding provisions of this Act.

23. Amendment of Act 11 of 1948.

In section 2 of the Minimum Wages Act, 1948,--
(i) for clause (a), the following clauses shall be substituted, namely:--
`(a) "adolescent" means a person who has completed his fourteenth year of age but has
not completed his eighteenth
year;
(aa) "adult" means a person who has completed his eighteenth year of age;';
(ii) after clause (b), the following clause shall be inserted, namely:-- `(bb) "child"
means a person who has not completed his
fourteenth year of age;'.

24. Amendment of Act 69 of 1951

In the Plantations Labour Act, 1951,--
(a) in section 2, in clauses (a) and (c), for the word "fifteenth", the word "fourteenth"
shall be substituted;
(b) section 24 shall be omitted;
(c) in section 26, in the opening portion, the words "who has completed his twelfth
year" shall be omitted.

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25. Amendment of Act 44 of 1958.
In the Merchant Shipping Act, 1958, in section 109, for the word "fifteen", the word
"fourteen" shall be substituted.

26. Amendment of Act 27 of 1961.

In the Motor Transport Workers Act, 1961, in section 2, in clauses (a) and (c), for the
word "fifteenth", the word "fourteenth" shall be substituted.

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 II. INDUSTRIAL RELATIONS
LAWS

THE TRADE UNIONS ACT, 1926

An Act to provide for the registration of Trade Unions and in certain respects to define
the law relating to registered Trade Unions 2[***].

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WHEREAS it is expedient to provide for the registration of Trade Unions and in
certain respects to define the law relating to registered Trade Unions 2[***].
It is hereby enacted as follows:

1. Short title, extent and commencement

(1) This Act may be called the 3[***] Trade Unions Act, 1926.
(2) It extends to the whole of India 5[***]
(3) It shall come into force on such date 6[***] as the Central Government may by
notification in the Official Gazette, appoint.

2. Definitions
In this Act 7[“the appropriate Government” means, in relation to Trade Unions whose
objects are not confined to one State, the Central Government, and in relation to other
Trade Unions, the State Government, and], unless there is anything repugnant in the
subject or context,¾ "executive" means the body, by whatever name called, to which
the management of the affairs of a Trade Union is entrusted;
1 For Statement of Objects and Reasons, see Gazette of India, 1925, part V, page
8,and for report of select committee, see Gazette of India, 1925, part IV page 197.
2 Words in the “Provinces of India”, omitted by Act 42 pf 1960.
3 Word “Indian” omitted by Act 38 of 1964.
4 Substituted by the adaptation of Law of Order, 1950.
5 Words "except the State of Jammu and Kashmir" substituted for words “except Part
B States” by Act 3 of 1951, omitted by Act 51 of 1970.
6 1-6-1927, see Gazette of India, 1927, Part I, page 467.
7 Inserted by the Government of India (Adaptation of Indian Laws) Order, 1937.

(b) 8[office-bearer]", in the case of a Trade Union, includes any member of the
executive thereof, but does not include an auditor;
(c) "prescribed" means prescribed by regulations made under this Act;
(d) "registered office" means that office of a Trade Union which is registered under
this Act as the head office thereof;
(e) "registered Trade Union" means a Trade Union registered under this Act; 9[(f)
"Registrar" means¾
(i) a Registrar of Trade Unions appointed by the appropriate Government under
section 3, and includes any Additional or Deputy Registrar of Trade Unions; and
(ii) in relation to any Trade Union, the Registrar appointed for the State in which the
head or registered office, as the case may be, of the Trade Union is situated ;]
(g) "trade dispute" means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers which is connected
with the employment or non-employment, or the terms of employment or the
conditions of labour, of any person, and "workmen" means all persons employed in
trade or industry whether or not in the employment of the employer with whom the
trade dispute arises; and
(h)"Trade Union" 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, and includes
any federation of two or more Trade Unions:
Provided that this Act shall not affect—
(i) any agreement between partners as to their own business;

18
(ii) any agreement between an employer and those employed by him as to such
employment; or
(iii) any agreement in consideration of the sale of the good-will of a business or of
instruction in any profession, trade or handicraft.

REGISTRATION OF TRADE UNIONS

3. Appointment of Registrars
1[(1)] 2[The appropriate Government] shall appoint a person to be the Registrar of
Trade Unions for 3[each State].
4[(2) The appropriate Government may appoint as many Additional and Deputy
Registrars of Trade Unions as it thinks fit for the purpose of exercising and
discharging, under the superintendence and direction of the Registrar, such powers and
functions of the Registrar under this Act as it may, by order, specify and define the
local limits within which any such Additional or Deputy Registrar shall exercise and
discharge the powers and functions so specified.
(3) Subject to the provisions of any order under sub-section (2), where an Additional
or Deputy Registrar exercises and discharges the powers and functions of a Registrar
in an area within which the registered office of a Trade Union is situated, the
Additional or Deputy Registrar shall be deemed to be the Registrar in relation to the
Trade Union for the purposes of this Act.]

4. Mode of registration
5[(1)] Any seven or more members of a Trade Union may, by subscribing their names
to the rules of the Trade Union and by otherwise complying with the provisions of this
Act with respect to registration, apply for registration of the Trade Union under this
Act.
6[(2) Where an application has been made under sub-section (1) for the registration of
a Trade Union, such application shall not be deemed to have become invalid merely
by reason of the fact that, at any time after the date of the application, but before the
registration of the Trade Unio n, some of the applicants, but not exceeding half of the
total number of persons who made the application, have ceased to be members of the
Trade Union or have given notice in writing to the Registrar dissociating themselves
from the application.]

5. Application for registration

(1) Every application for registration of a Trade Union shall be made to the Registrar,
and shall be accompanied by a copy of the rules of the Trade Union and a statement of
the following particulars, namely: —
1 Existing section re-numbered as sub-s. (1) thereof Act 42 of 1960.
2 Substituted by the Govt. of India (Adaptation of India Laws) Order, 1937 for “ each
L.G.”
3 Substituted for “the Province”, ibid
4 Inserted by Act of 1960.
5 Existing section re-numbered as sub-s. (1) thereof Act 42 of 1960.
6 Inserted by Act 42 of 1960.
(a) the names, occupations and addresses of the members making the application;
(b) the name of the Trade Union and the address of its head office; and

19
(c) the titles, names, ages, addresses and occupations of the 1[office- bearers] of the
Trade Union.
(2) Where a Trade Union has been in existence for more than one year before the
making of an application for its registration, there shall be delivered to the Registrar,
together with the application, a general statement of the assets and liabilities of the
Trade Union prepared in such form and containing such particulars as may be
prescribed.

6. Provisions to be contained in the rules of a Trade Union

A Trade Union shall not be entitled to registratio n under this Act, unless the executive
thereof is constituted in accordance with the provisions of this Act, and the rules
thereof provide for the following matters, namely: —
(a) the name of the Trade Union;
(b) the whole of the objects for which the Trade Union has been established;
(c) the whole of the purposes for which the general funds of the Trade Union shall be
applicable, all of which purposes shall be purposes to which such funds are lawfully
applicable under this Act;
(d) the maintenance of a list of the members of the Trade Union and adequate facilities
for the inspection thereof by the 2[office-bearers] and members of the Trade Union;
(e) the admission of ordinary members who shall be persons actually engaged or
employed in an industry with which the Trade Union is connected, and also the
admission of the number of honorary or temporary members as 1[office-bearers]
required under section 22 to form the executive of the Trade Union;
(f) the conditions under which any member shall be entitled to any benefit assured by
the rules and under which any fine or forfeiture may be imposed on the members;
(g) the manner in which the rules shall be amended, varied or rescinded;
(h) the manner in which the members of the executive and the other 1[office- 1
bearers] of the Trade Union shall be appointed and removed;
(i) the safe custody of the funds of the Trade Union, an annual audit, in such manner
as may be prescribed, of the accounts thereof, and adequate facilities for the inspection
of the account books by the 1*[office- bearers] and members of the Trade Union; and
(j) the manner in which the Trade Union may be dissolved.

7. Power to call for further particulars and to require alteration of name

(1) The Registrar may call for further information for the purpose of satisfying himself
that any application complies with the provisions of section 5, or that the Trade Union
is entitled to registration under section 6, and may refuse to register the Trade Union
until such information is supplied.
(2) If the name under which a Trade Union is proposed to be registered is identical
with that by which any other existing Trade Union has been registered or, in the
opinion of the Registrar, so nearly resembles such name as to be likely to deceive the
public or the members of either Trade Union, the Registrar shall require the persons
applying for registration to alter the name of the Trade Union stated in the application,
and shall refuse to register the Union until such alteration has been made.

8. Registration
The Registrar, on being satisfied that the Trade Union has complied with all the
requirements of this Act in regard to registration, shall register the Trade Union by
entering in a register, to be maintained in such form as may be prescribed, the

20
particulars relating to the Trade Union contained in the statement accompanying the
application for registration.

9. Certificate of registration
The Registrar, on registering a Trade Union under section 8, shall issue a certificate of
registration in the prescribed form, which shall be conclusive evidence that the Trade
Union has been duly registered under this Act.

10. Cancellation of registration

A certificate of registration of a Trade Union may be withdrawn or cancelled by the
Registrar--
(a) on the application of the Trade Union to be verified in such manner as may be
prescribed, or
(b) if the Registrar is satisfied that the certificate has been obtained by fraud or
mistake, or that the Trade Union has ceased to exist or has willfully and after notice
from the Registrar contravened any provision of this Act or allowed any rule to
continue in force which is inconsistent with any such provision, or has rescinded any
rule providing for any matter provision for which is required by section 6:
PROVIDED that not less than two months' previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the certificate shall be given by
the Registrar to the Trade Union before the certificate is withdrawn or cancelled
otherwise than on the application of the Trade Union.

Industrial Disputes Act, 1947

Objectives

21
The objective of the Industrial Disputes Act is to secure industrial peace and harmony
by providing machinery and procedure for the investigation and settlement of
industrial disputes by negotiations.
Various studies indicate that Indian labour laws are highly protective of labour, and
labour markets are relatively inflexible. These laws apply only to the organised sector.
Consequently, these laws have restricted labour mobility, have led to capital-intensive
methods in the organised sector and adversely affected the sector’s long-run demand
for labour. Labour being a subject in the concurrent list, State-level labour regulations
are also an important determinant of industrial performance. Evidence suggests that
States, which have enacted more pro-worker regulations, have lost out on industrial
production in general. -- (Ministry of Finance, 2006, p. 209
the Industrial Disputes Act (IDA) of 1947. Particular attention has been paid to its
Chapter V-B, introduced by an amendment in 1976, which required firms employing
300 or more workers to obtain government permission for layoffs, retrenchments and
closures. A further amendment in 1982 (which took effect in 1984) expanded its ambit
by reducing the threshold to 100 workers. It is argued that since permission is difficult
to obtain, employers are reluctant to hire workers whom they cannot easily get rid of.
Job security laws thus protect a tiny minority of workers in the organised sector and
prevent the expansion of industrial employment that could benefit the mass of workers
outside. It is also argued that the restriction on retrenchment has adversely affected
workplace discipline, while the threshold set at 100 has discouraged factories from
expanding to economic scales of production, thereby harming productivity. Several
other sections of the IDA allegedly have similar effects, because they increase
workers’ bargaining strength and thereby raise labour costs either directly through
wages or indirectly by inhibiting work reorganization in response to changes in
demand and technology. The Act also lays down
1. The provision for payment of compensation to the workman on account of
closure or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off
or retrenching the workers or closing down industrial establishments
3. Unfair labour practices on part of an employer or a trade union or workers.

Applicability
The Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods
and services irrespective of the number of workmen employed therein. Every person
employed in an establishment for hire or reward including contract labour, apprentices
and part time employees to do any manual, clerical,skilled, unskilled, technical,
operational or supervisory work, is covered by the Act. This Act though does not
apply to persons mainly in managerial or administrative capacity,persons engaged in a
supervisory capacity and drawing > 1600 p.m or executing managerial functions and
persons subject to Army Act, Air Force and Navy Act or those in police service or
officer or employee of a prison.

22
 III.WAGES AND LABOUR
LAWS

THE MINIMUM WAGES ACT, 1948

The need for a country of having minimum wage-fixing machinery was stressed by the
International Labour Organisation long back in 1928. Twenty years later our country
passed the Minimum Wages Act, 1948. The reason given by the Government for

23
passing the Act was that workers' organisations in the country were poorly developed
and consequently their bargaining power also was very poor.

Like the Payment of Wages Act, 1936 this Act also is exhaustively amended by many
States to widen its scope and application. The Act is a boon to a large number of
poorly paid persons in this country

Object of the Act

To provide for fixing minimum rates of wages in certain employments

Fixation of Minimum Rates of Wages

• The appropriate government to fix minimum rates of wages. The employees
employed in Para 1 or B of Schedule either at 2 or either part of notification u/s
27
• To make review at such intervals not exceeding five years the minimum rates
or so fixed and revised the minimum rates.

Government can also fix Minimum Wages for

(a) Time work (b) Piece work at piece rate (c) Piece work for the purpose of securing
to such employees on a time work basis (d) Overtime work done by employees for
piece work or time rate workers {Section 3}

Minimum Rates of Wages

Such as Basic rates of wages etc. Variable DA and Value of other concessions
etc. Sec- 4

Fixing Hours for Normal Working

a. Shall constitute a normal working day inclusive of one or more specified intervals.
b. To provide for a day of rest in every period of seven days with remuneration.
c. To provide for payment for work on a day of rest at a rate not less than the overtime
rate {Section 13}

Procedure for fixing and revising Minimum Rates of Wages

Appointing Committee issue of Notification etc. {Section 5}

Composition of Committee
Representation of employer and employee in schedule employer in equal number and
independent persons not exceeding 1/3rdor its total number one such person to be
appointed by the Chairman. {Section 9}

Payment of Minimum Rates of Wages

Employer to pay to every employee negated in schedule employment at a rate not less
than minimum rates of wages as fixed by Notification by not making deduction other
than prescribed. {Section 12}
Overtime
To be fixed by the hour, by the day or by such a longer wage-period works on any
day in excess of the number of hours constituting normal working day.
Payment for every hour or for part of an hour so worked in excess at the overtime rate
double of the ordinary rate of (1½ times or for agriculture labour) {Section 5}

24
Wages of workers who works for less than normal working days

Save as otherwise hereinafter provided, be entitled to receive wages in respect of work

done by him on that day as if he had worked for a full normal working day. {Section
15}

Wages for two class of work

Where an employee does two or more classes of work to each of which a different
minimum rate of wages is applicable, wages at not less than the minimum rate in
respect of each such class. {Section 16}

Maintenance of registers and records

• Register of Fines - Form 1 Rule 21(4)
• Annual Returns - Form III Rule 21(4-A)
• Register for Overtime - Form IV Rule 25
• Register of Wages - Form X, Wages Slip - Form XI, Muster Roll - Form V
Rule 26
• Representation of Register - for three year Rule 26-A {Section 18

Minimum time rate wages for piece work

Not less than minimum rates wages as fixed {Section 17}

Claims by employees
• To be filled by before authority constituted under the Act within 6 months.
• Compensation upto 10 times on under or non-payment of wages {Section 16}
Penalties Offences Punishment
For paying less than Imprisonment upto 6 months or with
minimum rates of wages fine upto Rs.500.00
As per Section 20 For contravention of any
provisions pertaining to Imprisonment upto 6 months or with
fixing hours for normal fine upto Rs.500.00
working day etc

The Payment Of Wages Act, 1936

Applicability of the Act

25
• Factory • Industrial Establishment • Tramway service or motor transport service
engaged in carrying passengers or goods or both by road for hire or reward • Air
transport service • Dock, Wharf or Jetty • Inland vessel, mechanically propelled •
Mine, quarry or oil-field • Plantation • Workshop or other establishment etc.

Coverage of Employees
Drawing average wage upto Rs 6500 per month.

Fines as prescribed by
• Not to be imposed unless the employer is given an opportunity to show cause
• To record in the register

Deduction for services rendered

When accommodation amenity or service has been accepted by the employer

Object of the Act

To regulate the payment of wages of certain classes of employed persons.

Time of payment of wages

The wages of every person employed be paid
• When less than 1000 persons are employed, shall be paid before the expiry of the 7ltl
day of the following month.
• When more than 1000 workers, before the expiry of the 10th day of the following
month.

Deduction made from wages

Deductions such as, fine, deduction for amenities and services supplied by the
employer, advances paid, over payment of wages, loan, granted for house-building or
other purposes, income tax payable, in pursuance of the order of the Court, PF
contributions, cooperative societies, premium for Life Insurance, contribution to any
fund constituted by employer or a trade union, recovery of fosses, ESI contributions
etc.

Deduction for damages or loss

• For default or negligence of an employee resulting into loss.
• Show cause notice has to be given to the employee.
Wages to be paid in current coins or currency notes
• All wages shall be paid in current coins or currency notes or in both
• After obtaining the authorization, either by cheque or by crediting the wages in
employee's bank account.

Deduction for absence from duties for unauthorized absence

Absence for whole or any part of the day-
• If ten or more persons absent without reasonable cause, deduction of wages upto 8
days

THE PAYMENT OF BONUS ACT, 1965

26
The Payment of Bonus Act, 1965, gives to the employees a statutory right to a share in
the profits of his employer. Prior to the enactment of the Act some employees used to
get bonus but that was so if their employers were pleased to pay the same.

The Act enables the employees to get a minimum bonus equivalent to one month's
salary or wages (8.33% of annual earnings) whether the employer makes any profit or
not. But the Act also puts a ceiling on the bonus and the maximum bonus payable
under the Act is equivalent to about 2 1/2 months' salary or wage (20% of annual
earnings).

It is to be noted that employees drawing salary or wage exceeding Rs. 10000.00 per
month are not entitled to get any bonus under the Act. (w.e.f. 1 April 2006)

Applicability of Act

Every factory where in 10 or more persons are employed with the aid of power or an
establishment in which 20 or more persons are employed without the aid of power on
any day during an accounting year

Establishment

Establishment includes Departments, undertakings and branches, etc.

Computation of available surplus

a. Income taxes and direct taxes as payable.

b. Depreciation as per section 32 of Income Tax Act.
c. Development rebate, investment or development allowance. {Section 5}

Components of Bonus

Salary or wages includes dearness allowance but no other allowances e.g. overtime,
house rent, incentive or commission. {Section 2(21)}

Separate establishment

If profit and loss accounts are prepared and maintained in respect of any such
department or undertaking or branch, then such department or undertaking or branch is
treated as a separate establishment. {Section 3}

Disqualification & Deduction of Bonus

On dismissal of an employee for;

• Fraud; or
• riotous or violent behavior while in the premises of the establishment; or
• theft, misappropriation or sabotage of any property of the establishment or
• Misconduct of causing financial loss to the Employer to the extend that bonus
can be deducted for that year {Section 9 & 18}
Computation of gross profit
For banking company, as per First Schedule.

27
Others, as per Second Schedule {Section 4}

Eligibility of Bonus

An employee will be entitled only when he has worked for 30 working days in that
year. {Section 8}

Payment of Minimum Bonus

8.33% of the salary or Rs.100 (on completion of 5 years after 1stAccounting year
even if there is no profit) {Section 10}

Eligible Employees

Employees drawing wages upto Rs.10000.00 per month or less.

For calculation purposes Rs.3500.00 per month maximum will be taken even if an
employee is drawing upto Rs.10000 per month. {Section 12}
Maintenance of Registers and Records etc.
• A register showing the computation of the allocable surplus referred to in
clause (4) of section 2, in form A.
• A register showing the set-on and set-off of the allocable surplus, under
section 15, in form B.
• A register showing the details of the amount of bonus due to each of the
employees, the deductions under section 17 and 18 and the amount actually
disbursed, in form C. {Section 26 Rule 4}

PENALTY
For contravention of any provision of the Act or the Rule, imprisonment upto 6
months or with fine upto Rs.1000 {Section 28

THE EQUAL REMUNERATION ACT, 1976

28
The Equal Remuneration Act is a gift of "the International Women's Year" to women
workers. It is enacted to give effect to the provision of Article 39 of the Constitution
of India which contains a directive principle of equal pay for equal work for both men
an women. The Act provides for the payment of equal remuneration to men and
women workers for the same work or work of a similar nature and for the prevention
of discrimination on the ground of sex against women in the matter of employment.
The main provisions of the Act are as follows.

Equal pay for equal work: No employer shall pay to any worker employed by him
remuneration at rates less favourable than those at which remuneration is paid by him
to the workers of the opposite sex for performing the same work or work of similar
nature. {Section 4(1)}

No discrimination to be made while recruiting men and women: No employer

shall make any discrimination against women while making recruitment for the same
work or work of a similar nature. {Section 5}

Exceptions: The provisions of the Act shall be inapplicable when special treatment is
given to women under any law or when special treatment is accorded to women in
connection with the birth of a child. {Section 15}

Claims and Complaints:

a. Complaints with regard to the contravention of any provision of the Act and
claims arising out of non-payment of wages at equal rates to men an women
workers for the same work or work of similar nature shall be heard and
decided by an authority appointed by the appropriate Government. An appeal
shall lie against any order of the authority to an appellate authority appointed
by the appropriate Government {Section 7}

b. Monies due from an employer arising of the decision of the authority or the
appellate authority can be recovered by making an application under Section
33-C(1) of the Industrial Disputes Act, 1947. {Section 7(8)}
Penalties: If any employer (a) makes any recruitment in contravention of the
provisions of the Act, or (b) makes any payment of remuneration at unequal rates to
men and women workers, for the same work or work of a similar nature, or (c) makes
any discrimination between men and women workers in contravention of the
provisions of the Act, he would be punished with fine upto Rs. 10000.00 {Section 10}

Maintenance of Register: Every employer shall maintain in the prescribed form a

register in relation to the workers employed by him. {Section 8 & Rule 6}

What is meant by equality of work?: The equality of work is not based on the
designation or the nature of work alone. There are several other factors, which are
equally relevant. They are qualifications, responsibilities, reliabilities, experience,
confidentiality, functional need and requirements commensurate with the position in
the hierarchy

29
 III. LAWS FOR LABOUR
WELFARE AND SECURITY

30
 WORKMEN’S COMPENSATION ACT 1948

Applicability

All workers irrespective of their status or salaries either directly or through contractor
or a person recruited to work abroad.
Employer's liability to pay compensation to a workman
On death or personal injury resulting into total or partial disablement or occupational
disease caused to a workman arising out of and during the course of employment.

Amount of compensation
• Where death of a workman results from the injury
• an amount equal to fifty per cent of the monthly wages of the deceased workman
multiplied by the relevant factor or an amount of eighty thousand rupees, whichever is
more
• Where permanent total disablement results from the injury.
• an amount equal to sixty per cent of the monthly wages of the injured workman
multiplied by the relevant factor or an amount of ninety thousand rupees, whichever is
more.

Procedure for calculation

Higher the age - Lower the compensation
• Relevant factor specified in second column of Schedule IV giving slabs depending
upon the age of the concerned workman.

• Example : In case of death

• Wages Rs.3000 PM -Age 23 years
• Factor as schedule IV Rs.219.95
• Amount of compensation Rs.329935
• In case of total disablement Rs.395910

Wages
When the monthly wages are more than Rs.4000 per month it will be deemed
Rs.4000.

Notice of accident
As soon as practicable

When an employee is not liable for compensation

• In respect of any injury which does result in the total or partial disablement of the
workman for a period exceeding three days.

• In respect of any injury, not resulting in death or permanent total disablement caused
by an accident which is directly attributable to-

• The workman having been at the time thereof under the influence of drink or drugs,
or

31
• Wilful disobedience of the workman to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of workmen, or

• Wilful removal or disregard by the workman of any safety guard or other device
which he knew to have been provided for the purpose of securing the safely of
workman.

Report of accident Rule 11 Form EE

Report of fatal accident and serious injury within /I days to the Commissioner (not
applicable when ESI Act applies).

Bar upon contracting out

Any workman relinquishing his right for personal injury not

32
 MATERNITY BENEFIT ACT, 1961

An Act to regulate the employment of women in certain establishment for certain

period before and after child-birth and to provide for maternity benefit and certain
other benefits.
Be it enacted by Parliament in the Twelfth Year of the Republic of India as follows: -

1. Short title, extend and commencement. -- (1) This Act may be called the Maternity
Benefit Act, 1961.
(2) It extends to the whole of India 2[* * *]
(3) It shall come into force on such date as may be notified in this behalf in the
Official
Gazette, -- 3[(a) in relation to mines and to any other establishment wherein persons
are employed for the exhibition of equestrian, acrobatic and other performances, by
the Central Government, and]
(b) in relation to other establishments in s State, by the State Government.
NOTES. – This Act came into force in relation to mines in the territories to which it
extends on the 1st. November 1963 – Vide S.O. No. 2920, dated 5th. October, 1963,
published in the Gazette of India, Part II, Sec. 3 (ii), dated 12th. October, 1963. This
Act came into force in the whole of Uttar Pradesh with effect from 22nd. February
1974, vide notification No. 512 (V)-2/36-5-13 (V) 72, dated 22nd. February 1974.

2. Application of Act. –
(1) It applies in the first instance, to every establishment being a factory, mine or
plantation 4[including any such establishment belonging to Government and to every
establishment wherein persons are employed for the exhibition of equestrian, acrobatic
and other performances]: Provided that the State Government may, with the approval
of the Central Government, after giving not less than two months’ notice of its
intention of so doing, by notification
1 Received the assent of the President on the 12th. December, 1961 and published in
the Gazette of India, Extraordinary, dated 13th. December 1961. For Statement of
Objects and Reasons see Gazette of India, Extraordinary, Part II, dated 6th. December
1960.
2 Words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, Sec. 2
and Sch.
3 Subs. by Act 52 of 1973, Sec. 2, w.e.f. 1-3-1975 – Vide notification No. S.O. 113A
(E), dated 27-2-1975.
4 Subs. by Aci 52 of 1973, S.3.
In the official on In the official Gazette, declare that all or any of the provisions of this
Act shall apply also to any other establishment or class of establishments, industrial,
commercial, agricultural or otherwise.
(2) 5[Save as otherwise provided in 6[sections 5A and 5B] nothing contained in this
Act] shall apply to any factory or other establishment to which the provisions of the
Employees’ State Insurance Act, 1948 (84 of 1948), apply for the time being.

3. Definitions. –
In this Act, unless the context otherwise requires, --
(a) “appropriate Government” means in relation to an establishment being a mine 7[or
an establishment where persons are employed for the exhibition of equestrian,

33
acrobatic and other performances], the Central Government and in relation to any
other establishment, the State Government;
(b) “child” includes a still-born child;
(c) “delivery” means the birth of a child;
(d) “employer” means –
(i) in relation to an establishment which is under the control of the Government, a
person or authority appointed by the Government for the supervision and control of
employees or where no person or authority is so appointed, the head of the
department;
(ii) in relation to an establishment which is under any local authority, the person
appointed by such authority for the supervision and control of employees or where no
person is so appointed, the chief executive officer of the local
authority;
(iii) in any other case, the person who are the authority which has the ultimate control
over the affairs of the establishment and where the said affairs are entrusted to any
other person whether called a manager, managing director,
managing agent, or by any other name, such person; [8(e) “establishment” means –
(i) a factory;
(ii) a mine;
(iii) a plantation;
(iv) an establishment wherein persons are employed for the exhibition of equestrian,
acrobatics and other performances; or
5 Subs. by Aci 21 of 1972, S.2.
6 Subs. by Act 53 of 1976, sec. 2, for “section 5A”. Act 53 of 1976 came into force
w.e.f. 1-5-1976 – Vide notification No. S.O. 337 (E), dated 30-4-1976.
7 Added by Act 52 of 1973, S. 4.
8 Subs. by Act 52 of 1973, S. 4.
(v) an establishment to which the provisions of this Act have been declared under sub-
section (4) of section 2 to be applicable;]
(f) “factory” means a factory as defined in clause (m) of section 2 of the Factories Act,
1948 (63 of 1948);
(g) “Inspector” means an Inspector appointed under section 14;
(h) “maternity benefit” means the payment refereed to in sub-section (1) of section 5;
(i) “mine” means a mine as defined in clause (j) of section 2 of the Mines Act, 1952
(35 of 1952)
(j) “miscarriage” means expulsion of the contents of a pregnant uterus at ay period
prior to or during the twenty-sixth week of pregnancy but does not include any
miscarriage the causing of which ins punishable under the Indian Penal Code (45 of
1860);
(k) “plantation” means a plantation as defined in clause (f) of section 2 of the
Plantations Labour Act, 1951 (69 of 1951);
(l) “prescribed” means prescribed by rules made under this Act;
(m) “State Government” in relation to a Union territory, means the Administrator
thereof;
(n) “wages” means all remuneration paid or payable in cash to a woman, if the terms
of the contract of employment, express or implied, were fulfilled and includes –
(1) such cash allowances (including dearness allowance and house rent allowance) as
a woman is for the time being entitled to;
(2) incentive bonus; and

34
(3) the money value of the concessional supply of foodgrains and other articles, but
does not include –
(i) any bonus other than incentive bonus;
(ii) overtime earnings and any deduction or payment made on account of fines;
(iii) any contribution paid or payable by the employer to any pension fund or
provident fund or for the benefit of the woman under any law for the time being in
force; and
(iv) any gratuity payable on the termination of service;
(o) “woman” means a woman employed, whether directly or through any agency, for
wages in any establishment.
NOTES. – Sec 3 (f). – A factory does not include a mine subject to the operation of
the Mines Act, 152, or a railway running-shed.
Sec. 3 (j) – The definition of miscarriage is similar to the definition as given in Sec. 2
(14-B) of the Employees’ State Insurance Act, 1948.

4. Employment of, or work by, women prohibited during certain period. –

(1) No employer shall knowingly employ a woman in any establishment during the six
weeks immediately following the day of her delivery or her miscarriage.
(2) No woman shall work in any establishment during the six weeks immediately
following the day of her delivery of her miscarriage.
(3) Without prejudice to the provisions of section 6, no pregnant woman shall, on a
request being made by her in this behalf, be required by her employer to do during the
period specified in sub-section (4) any work which is of an arduous nature or which
involves long hours of standing or which in any way is likely to interfere with her
pregnancy or the normal development of the foetus, or is likely to cause her
miscarriage or otherwise to adversely affect her health.
(4) The period referred to in sub-section (3) shall be –
(a) at the period of one month immediately preceding the period of six weeks, before
the date of her expected delivery;
(b) any period during the said period of six weeks for which the pregnant woman does
not avail of leave of absence under section 6.

5. Right to payment of maternity benefit. –

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her
employer shall be liable for, the payment of maternity benefit at the rate of the average
daily wage for the period of her actual absence immediately preceding and including
the day of her delivery and for the six weeks immediately following that day.

Explanation. – For the purpose of this sub-section, the average daily wage means the
average of the woman’s wages payable to her for the days on which she has worked
during the period of three calendar months immediately preceding the date from which
she absents herself on account of maternity, or one rupee a day, whichever is higher.
(2) No woman shall be entitled to maternity benefit unless she has actually worked in
an establishment of the employer from whom she claims maternity benefit for a period
of not less than one hundred and sixty days in the twelve months immediately
preceding the date of her expected delivery: Provided that the qualifying period of one
hundred and sixty days aforesaid shall not apply to a woman who has immigrated into
the State of Assam and was pregnant at the time of the immigration.
Explanation: - For the purpose of calculating under this sub-section the days on
which a woman has actually worked in the establishment, the days for which she has

35
been laid-off during the period of twelve months immediately preceding the date of
her expected delivery shall be taken into account.
(3) The maximum period for which any woman shall be entitled to maternity benefit
shall be twelve weeks, that is to say, six weeks up to and including the day of her
delivery and six weeks immediately following that day: Provided that where a woman
dies during this period, the maternity benefit shall be payable only for the days up to
and including the day of her death: Provided further that where a woman, having been
delivered of a child dies during her delivery or during the period of six weeks
immediately following the date of her delivery, leaving behind in either case the child,
the employer shall be liable for the maternity benefit for the entire period of six weeks
immediately following the day of her delivery but if the child also dies during the said
period, then for the days up to and including the day of the death of the child.
NOTES. – The term “week” means a cycle of seven days including Sundays;

9. Continuance of payment of maternity benefit in certain cases. –

Every woman entitled to the payment of maternity benefit under this Act shall,
notwithstanding the application of the Employees’ State Insurance Act, 1948 (34 of
1948), to the factory or other establishment in which she is employed, continue to be
so entitled until she becomes qualified to claim maternity benefit under Sec. 50 of that
Act.]

10. Payment of maternity benefit in certain cases. –

Every woman – (a) who is employed in a factory or other establishment to which the
provisions of the Employees’ State Insurance Act, 1948 (34 of 1948), apply; (b)
whose wages (excluding remuneration for overtime work) for a month exceed the
amount specified in sub-clause (b) of clause (a) of section 2 of that Act; and (c) who
fulfils the conditions specified in sub-section (2) of section 5, shall be entitled to the
payment of maternity benefit under this Act].

6. Notice of claim for maternity benefit and payment thereof. –

(1) Any woman employed in an establishment and entitled to maternity benefit under
the provisions of this Act may give notice in writing in such form as may be
prescribed, to her employer, stating that her maternity benefit and any other amount to
which she may be entitled under this Act may be paid to her or to such person as she
may nominate in the notice and that she will not work in any establishment during the
period for which she receives maternity benefit.
(2) In the case of a woman who is pregnant, such notice shall state the date from
which she will be absent from work, not being a date earlier than six weeks from the
date of her expected delivery.9 Ins. By Act 21 of 1972, S. 3.10 Ins. By Act 53 of 1976,
S. 3
(3) Any woman who has not given the notice when she was pregnant may give such
notice as soon as possible after the delivery.
(4) On receipt of the notice, the employer shall permit such woman to absent herself
from the establishment until the expiry of six weeks after the day of her delivery.
(5) The amount of maternity benefit for the period preceding the date of her expected
delivery shall be paid in advance by the employer to the woman on the production of
such proof as may be prescribed that the woman is pregnant, and the amount due for
the subsequent period shall be paid by the employer to the woman within forty-eight
hours of production of such proof as may be prescribed that the woman has been
delivered of a child.

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(6) The failure to give notice under this section shall not disentitle a woman to
maternity benefit or any other amount under this Act if she is otherwise entitled to
such benefit or amount and in any such case an Inspector may either of his own
motion or on an application made to him by the woman, order the payment of such
benefit or amount within such period as may be specified in the order.
NOTES. – See also Sec. 50 of the Employees’ State Insurance Act, 1948, for
conditions under which a woman becomes qualified to claim maternity benefit under
this Act.

7. Payment or maternity benefit in case of death of a woman. –

If a woman entitled to maternity benefit or any other amount under this Act, dies
before receiving such maternity benefit or amount, or where the employer is liable for
maternity benefit under the second proviso to sub-section (3) of section 5, the
employer shall pay such benefit or amount to the person nominated by the woman in
the notice given under section 6 and in case there is no such nominee, to her legal
representative.

8. Payment of medical bonus. –

Every woman entitled to maternity benefit under this Act shall also be entitled to
receive from her employer a medical bonus of twenty-five rupees, if no pre-natal
confinement and post-natal care is provided for by the employer free of charge.

9. Leave for miscarriage. –

In case of miscarriage, a woman shall, on production of such proof as may be
prescribed, be entitled to leave with wages at the rate of maternity benefit for a period
of six weeks immediately following the day of her miscarriage.

10. Leave for illness arising out of pregnancy, delivery, premature birth of child, or
miscarriage. –
A woman suffering illness arising out of pregnancy, delivery, premature birth of child
or miscarriage shall, on production of such proof as may be prescribed, be entitled in
addition to the period of absence allowed to her under section 6, or, as the case may
be, under section 9, to leave with wages at the rate of maternity benefit for a maximum
period of one month.

11. Nursing breaks. –

Every woman delivered of a child who returns to duty after such delivery shall, in
addition to the interval for rest allowed to her, be allowed in the course of her daily
work two breaks of the prescribed duration for nursing the child until the child attains
the age of fifteen months.

12. Dismissal during absence or pregnancy. –

(1) Where a woman absents herself from work in accordance with the provisions of
this Act, it shall be unlawful for her employer to discharge or dismiss her during or on
account of such absence or to give notice of discharge or dismissal on such a day that
the notice will expire during such absence, or to vary to her disadvantage any of the
conditions of her service.
(2) (a) The discharge or dismissal of a woman at any time during her pregnancy, if the
woman but for such discharge of dismissal would have been entitled to maternity
benefit or medical bonus referred to in section 8, shall not have the effect of depriving

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her of the maternity benefit or medical bonus: Provided that where the dismissal is for
any prescribed gross misconduct the employer may, by order in writing communicated
to the woman, deprive her of the maternity benefit or medical bonus or both.
(b) Any woman deprived of maternity benefit or medical bonus or both may, within
sixty days from the date on which the order of such deprivation is communicated to
her, appeal to such authority as may be prescribed, and the decision of that authority
on such appeal, whether the woman should or should not be deprived of maternity
benefits or medical bonus or both, shall be final.
(c) Nothing contained in this sub-section shall affect the provisions contained in
subsection (1).

13. No deduction of wages in certain cases. –

No deduction from the normal and usual daily wages of a woman entitled to maternity
benefit under the provisions of this Act
shall be made by reason only of –
(a) the nature of work assigned to her by virtue of the provisions contained in
subsection (3) of section 4 : or
(b) breaks for nursing the child allowed to her under the provisions of section 11.

14. Appointment of Inspectors. – The appropriate Government may, by notification in

the Official Gazette, appoint such officers as it thinks fit to by Inspectors for the
purposes of this Act and may define the local limits of the jurisdiction within which
they shall exercise their function under this Act.

15. Powers and duties of Inspectors. -- An Inspector may, subject to such restrictions
or conditions as may be prescribed, exercise all or any of the following powers,
namely: -
(a) enter at all reasonable times with such assistants, if any, being persons in the
service of the Government or any local or other public authority as he thinks fit, any
premises or place where women are employed or work is given to them in an
establishment, for the purposes or examining any registers, records and notices
required to be kept or exhibited by or under this Act and require their production for
inspection;
(b) examine any person whom he finds in any premises or place and who, he has
reasonable cause to believe, is employed in the establishment: Provided that no person
shall be compelled under this section to answer any question or give any evidence
tending to incriminate himself:
(c) require the employer to give information regarding the names and addresses of
women employed, payments made to them, and applications or notices received form
them under this Act; and
(d) take copies of any registers and records or notices or any portions thereof.

16. Inspectors to be public servants. –

Every Inspector appointed under this Act shall be deemed to be a public servant within
the meaning of section 21 of the Indian Penal Code (45 of 1860).
17. Power of Inspector to direct payments to be made. –
(1) Any woman claiming that maternity benefit or any other amount to which she is
entitled under this Act and any person claiming that payment due under section 7 has
been improperly withheld, may make a complaint to the inspector.

38
(2) The Inspector may, of his own motion or on receipt of a complaint referred to in
subsection (1), make an enquiry or cause an inquiry to be made and if satisfied that
payment has been wrongfully withheld, may direct the payment to be made in
accordance with his orders.
(3) Any person aggrieved by the decision of the Inspector under sub-section (2) may,
within thirty days from the date on which such decision is communicated to such
person, appeal to the prescribed authority.
(4) The decision of the prescribed authority where an appeal has been preferred to it
under sub-section (3) or of the Inspector where no such appeal has been preferred,
shall be final.
(5) Any amount payable under these sections shall be recoverable as an arrear of lane
revenue.

18. Forfeiture of maternity benefit. –

If a woman works in any establishment after she has been permitted by her employer
to absent herself under the provisions of section 6 for any period during such
authorized absence, he shall forfeit her claim to the maternity benefit for such period.

19. Abstracts of Act and rules there under to be exhibited. –

An abstract of the provisions of this Act and the rules made there under in the
language or languages of the locality shall be exhibited I a conspicuous place by the
employer in every part of the establishment in which women are employed.

20. Registers, etc. –

Every employer shall prepare and maintain such registers, records and muster-rolls
and in such manner as may be prescribed.

21. Penalty for contravention of Act by employers. –

If any employer contravenes the provisions of this Act or the rules made there under
he shall be punishable with imprisonment which may extend to three months, or with
fine which may extend to five hundred rupees, or with both; and where the
contravention is of any provision regarding maternity benefit or regarding payment of
any other amount and such maternity benefit or amount has not already been
recovered, the court shall in addition recover such maternity benefit or amount as if it
were a fine, and pay the same to the person entitled thereto.

22. Penalty for obstructing Inspector. –

Whoever fails to produce on demand by the Inspector any register or document in his
custody kept in pursuance of this Act or the rules made there under or conceals or
prevents any person from appearing before or being examined by an Inspector, shall
be punishable with imprisonment which ma extend to three months, or with fine which
may extend to five hundred rupees or with both.

23. Cognizance of offences. –

(1) No prosecution for an offence punishable under this Act or any rule made there
under shall be instituted after the expiry of one year from the date on which the
offence is alleged to have been committed and no such prosecution shall be instituted
except by, or with the previous sanction of, the Inspector; Provided that in computing
the period of one year aforesaid, the time, if any, taken for the purpose of obtaining
such previous sanction shall be excluded.

39
(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the First
Class shall try any such offence.
NOTES. – Sections 21 to 23 deal with penalties under the Act and procedure to try
offences committed under this Act.

24. Protection of action taken in good faith. –

No suit, prosecution or other legal proceeding shall lie against any person for anything
which is in good faith done or intended to be done in pursuance of this Act or of any
rule or order made there under.

25. Power of Central Government to give directions. –

The Central Government may give such directions as it may deem necessary to a State
Government regarding the carrying into execution the provisions of this Act and the
State Government shall comply with such directions.

26. Power to exempt establishments. –

If the appropriate Government is satisfied that having regard to an establishment or a
class of establishments providing for the grant of benefit which are not less favourable
than those provided in this Act, it is necessary so to do, it may, by notification in the
Official Gazette, exempt subject to such conditions and restrictions, if any, as may be
specified in the notifications, the establishment or class of establishments from the
operation of all or any of the provisions of this Act or of any rule made there under.

27. Effect of laws and agreements inconsistent with this Act. –

(1) The provisions of this Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law or in the terms of any award, agreement or
contract of service, whether made before or after the coming into force of this Act:
Provided that where under any such award, agreement, contract of service or
otherwise, a woman is entitled to benefits in respect of any matter which are more
favorable to her than those to which she would be entitled under this Act, the woman
shall continue to be entitled to the more favorable benefits in respect of that matter,
not withstanding that she is entitled to receive benefit in respect of other matters under
this Act.
(2) Nothing contained in this Act shall be construed to preclude a woman from
entering into an agreement with her employer for granting her rights or privileges in
respect of any matter, which are more favourable to her than those to which she would
be entitled under this Act.

28. Power to make rules. –

(1) The appropriate Government may, subject to the condition of previous publication
and by notification in the Official Gazette, make rules for carrying out the purposes of
this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such
rules may provide for –
(a) the preparation and maintenance of registers, records and muster rolls;
(b) the exercise of powers (including the inspection of establishments) and the
performance of duties by Inspectors for the purposes of this Act;
(c) the method of payment of maternity benefit and other benefits under this Act in so
far as provision has not been made therefore in this Act;
(d) the form of notices under section 6:

40
(e) the nature of proof required under the provisions of this Act;
(f) the duration of nursing breaks referred to in section 11;
(g) acts which may constitute gross misconduct for purposes of section 12;
(h) the authority to which an appeal under clause (b) of sub-section (2) of section 12
shall lie, the form and manner in which such appeal may be made and the procedure to
be followed in disposal thereof;
(i) the authority to which an appeal shall lie against the decision of the Inspector under
section 17; the form and manner in which such appeal may be made and the procedure
to be followed in disposal thereof;
(j) the form and manner in which complaints be made to Inspectors under subsection
(1) of section 17 and the procedure to be followed by them when making inquiries or
causing inquiries to be made under sub-section (2) of that section;
(k) any other matter which is to be, or may be, prescribed.
(3) Every rule made by the Central Government under this section shall be laid as soon
as may be after it is made, before each House of Parliament while it is in session for a
total period of thirty days which may be comprised in one session 11[or in two or
more successive sessions, and if, before the expiry of the session immediately
following the session or the successive session, aforesaid,] both Houses agree in
making any modification in the rule or both houses agree that the rule should not be
made, the rule shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done under that rule.

29. Amendment of Act 69 of 1951. –

In section 32 of Plantation Labour Act, 1951, --
(a) in sub-section (1), the letter and brackets “(a)” before the words “in the case of
sickness,” the word “and” after the words “sickness allowance”, and clause (b) shall
be omitted.
(b) In sub-section (2), the words “or maternity” shall be omitted.

30. Repeal. –
On the application of this Act. –
(i) to mines, the Mines Maternity Benefit Act, 1941 (19 of 1941); and Maternity
Benefit Act, 1929 (Bom. Act VII of 1929), as in force in that territory, shall stand
repealed.

The Employees' Provident Funds and Miscellaneous Provisions Act,

1952

41
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is enacted
to provide a kind of social security to the industrial workers. The security, however,
differs from the security provided to them under the Workmen's Compensation Act or
the Employees' State Insurance Act. The Employees' Provident Funds and
Miscellaneous Provisions Act mainly provides retirement or old age benefits, such as
Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension and
Deposit Linked Insurance.

Provision for terminal benefit of restricted nature was made in the Industrial Disputes
Act, 1947, in the form of payment of retrenchment compensation. But this benefit is
not available to a worker on retirement, on reaching the age of superannuation or
voluntary retirement.

The Employees' Provident Funds and Miscellaneous Provisions Act is intended to

provide wider terminal benefits to the industrial workers. For example, the Act
provides for payment of terminal on reaching the age of superannuation, voluntary
retirement and retirement due to incapacity to work.

Eligibility
Any person who is employed for work of an establishment or employed
through contractor in or in connection with the work of an establishment.

Applicability
• Establishment which is factory engaged in any industry specified in Schedule 1
and in which 20 or more persons are employed.
• Any other establishment employing 20 or more persons which Central
Government may, by notification, specify in this behalf.
• Any establishment employing even less than 20 persons can be covered
voluntarily under section 1(4) of the Act

Payment of Contribution
• The employer shall pay the contribution payable to the EPF, EDLI and
Employees' Pension Fund in respect of the member of the Employees' Pension
Fund employed by him directly by or through a contractor.
• It shall be the responsibility of the principal employer to pay the contributions
payable to the EPF, EDLI and Employees' Pension Fund by himself in respect
of the employees directly employed by him and also in respect of the
employees employed by or through a contractor.

Benefits
Employees covered enjoy a benefit of Social Security in the form of an unattachable
and unwithdrawable (except in severely restricted circumstances like buying house,
marriage/education, etc.) financial nest egg to which employees and employers
contribute equally throughout the covered persons’ employment.
This sum is payable normally on retirement or death. Other Benefits include
Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.

Rate of Contribution
Scheme Employee's Employer's Central Govt.

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 Amount>8.33% (in case
where contribution is
Provident Fund 12% of 10%) 10% (in
12% NIL
Scheme case of
certain Establishments as
per details given earlier)
Insurance Scheme NIL 0.5% NIL
8.33%(Diverted out of
Pension Scheme NIL 1.16%
Provident Fund

Clarification about Contribution

After revision in wage ceiling from Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per month, the
government will continue to contribute1.16% upto the actual wage of maximum
Rs.6500 per month towards Employees’ Pension Scheme. The employer’s share in
the Pension Scheme will be Rs.541 w.e.f. 1.6.2001.

Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is

required to be paid upto a maximum limit of Rs.6500.

The employer also will pay administrative charges @ 0.01% on maximum limit of
Rs.6500 whereas an exempted establishment will pay inspection charges
@ 0.005% on the total wages paid.

Notes:
The above clarification is given by taking wages upto a maximum of Rs.6500 towards
wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.6500 can also become
member of the Fund and the Schemes on joint request and if, for instance, such an
employee is getting Rs.10, 000 per month, his share towards provident fund
contribution will be Rs.1200 e.g. 12% and employer’s share towards provident fund
contribution will be Rs.659 and Rs.541 towards Employees’ Pension Fund.

Damages
Less than 2 months
@ 17% p.a.
Two months and above but less than upto four months
@ 22% p.a.
Four months and above but less than upto six months
@ 27% p.a.
Six months and above

Penal Provision
• Liable to be arrested without warrants being a cognizable offence.
• Defaults by employer in paying contributions or inspection/administrative
charges attract imprisonment upto 3 years and fines upto Rs. 10,000.00
{Section 14}
• For any retrospective application, all dues have to be paid by employer with
damages upto 100% of arrears

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EXPERIENCE

44
This assignment helped us to understand the complexities, enforcements and benefits
of industrial and labour laws of Indian Constitution which is an important aspect of
Human Resource management.
I sincerely hope that this assignment will create a better understanding of human
resource management and I thank NIFT curriculum to give us an opportunity to study
and scrutinize a suBject which will be very helpful for us to make our future career
choices.

BIBLIOGRAPHY

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 Human Resource Management by ATG educational
 J. Mehta and Companies Files
 Labour Consultancy Services

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