Industrial Legal Environment

Romans: Law is the standard of what is just and unjust.

Austin: Law is the aggregate of rule set by men as

politically superior, or sovereign, to men as politically
subject. In other words, law is command of the
sovereign.

Salmond: the body of principles recognized and applied

by the state in the administration of justice.
 Opinions
of experts

Morals
and Custom
equity
SOURCES
OF LAW

Legislatio
Precedent
n
 Custom
A practice followed by people of a particular group or
region.

Essentials of a Custom
Antiquity
Continuance
Obligatory force
Certainty
Reasonableness / public policy
Conformity with statute law
What is a Precedent?
According to Oxford Dictionary, Precedent is a
previous instance or case which is, or may be taken as
an example of rule for subsequent cases, or by which
some similar act or circumstances may be supported or
justified.
Precedents are the results of creative role of the judges
while dealing cases.
Stare decisis (stand by decided cases), ratio decidendi
(law declared)
 Legislation

Promulgation of legal rules by an authority which has

the power to do so. (Parliament, Legislatures,
President, Governor, King/Queen etc.). Also known as
Supreme Legislation.

Morals and equity

Opinions of experts
 Why a MBA know Law

 He should develop a ‘legal sense’ to know his rights

 He should develop a ‘legal sense’ to know his obligations as per

relevant law.

 Remember “ignorance of law is no excuse”.

 There are many legislations affecting the business entity today.

Basic knowledge of some of the legislations, rules, notifications
and clarifications under various provisions of the concerned Acts
would help in carrying out the business without legal problems.
Some of Acts may be grouped under:
 General Laws,
 Procedural Laws
 Commercial & Corporate Laws
 Environmental Laws
 Labour and Industrial Laws
 Taxation Laws
General Laws

 The Constitution of India [395 Articles divided into 22

Parts and 12 Schedules – fundamental rights, directive
principles, constituting )

 The Indian Penal Code, 1860 [ general penal code

contained in 511 sections divided into 23 chapters)

 Family Laws /personal laws (Hindu, Muslim &

Christian – governing majority, adoption, inheretence of
property, marriage, divorce, guardianship etc. in
different Acts)
Procedural codes
 The Code of Civil Procedure, 1908 [158 sections and 51
Orders ]

 The Code of Criminal Procedure, 1973 [484 sections

divided into 38 chapters with 2 schedules – 1st schedule
about classification of offences and 2nd schedule contains
various forms used in following the procedure.]

 The Indian Evidence Act, 1872 [167 sections divided into

11 parts) deals with proving facts by evidence–oral or
written or circumstantial. Facts are the basis on which the
rights and liabilities are ascertained to determine the case
before hand.
Commercial & Corporate Laws

 The Indian Contract Act, 1872

 The Indian Partnership Act 1932
 The Negotiable Instruments Act, 1881
 The Companies Act, 1956
 The Foreign Exchange Management Act,
1999
 The Competition Act, 2002
 The Securities Exchange Board of India Act,
1992
 The Consumer Protection Act, 1986
Environmental Laws:

 The Water (Prevention and Control of

Pollution) Act, 1973
 The Air (Prevention and Control of Pollution)
Act, 1981
 The Environment (Protection) Act, 1986
Industrial and Labour Laws

 The Factories Act, 1948

 The Industrial Disputes Act, 1947
 The Trade Unions Act, 1926
 The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
 The Employees’ State Insurance Act, 1948
 The Industrial Employment (Standing Orders) Act,
1946
 The Workmen’s Compensation Act, 1923
 The Maternity Benefit Act, 1961
 The Minimum Wages Act, 1948
 The Payment of Bonus Act, 1965
 Shops and Establishment Acts of concerned States.
Direct & Indirect Taxation Laws:

 The Income Tax Act, 1961

 The Customs Act, 1962
 The Central Excise Act. 1944
 The Central Sales Tax Act, 1956 & concerned
State General Sales Tax Acts.
 Host of State Acts & Rules relating to sales,
excise etc.
Workmen’s Compensation Act 1923

This Act is the earliest national legislation to provide the

compensation to certain classes of workmen by their
employers for injury which may be suffered by the workmen
as a result of an accident during the course of employment. 
The general principle is that a workman who suffers injury in
course of his employment should be entitled to compensation
and in case of fatal injury his dependants should be
compensated.
 
Minimum Wages Act 1948
The Act prescribes minimum wages for all employees in all
establishments or working at home in certain employments
specified in the schedule of the Act. Central and State
Governments revise minimum wages specified in the schedule.

Payment of Wages Act 1936

The Act regulates issues relating to time limits within which
wages shall be distributed to employees and that no deductions
other than those authorized by the law are made by the
employers.
Industrial Disputes Act 1947

Further more the Act aims to ensure fair terms to

workmen and to prevent disputes between employer
and the employees so that production may not be
adversely affected in the larger interest of public.
It provides the mechanism for the reconciliation and
adjudication of disputes or differences between the
employees and the employers.  The Act provides the
procedure for termination/retrenchment or layoff of
a workman.
Employees Provident Fund and Miscellaneous
Provisions Act 1952

This Act provides for the institution of provident

funds, employees pension funds and deposit linked
insurance fund for employees in factories and other
establishment.  Its main purpose to ensure the
financial security of the employees in an
establishment by providing for a system of
compulsory savings.
Payment of Bonus Act 1965

The Act applies to any establishment / business in which

twenty or more persons are employed on any day during an
accounting year.  It provides for the payment of bonus to
persons employed in certain establishments on the basis of
profits or on the basis of production or productivity. The
minimum bonus, which an employer is required to pay even
if he suffers losses during the accounting year is 8.33% of the
salary.
Payment of Gratuity Act 1972

The Act provides for a provision for the payment of

gratuity to all employees in all establishments
employing ten or more employees to all types of
workers. Gratuity is payable to an employee on his
retirement/resignation.
Maternity Benefit Act 1961

The Act provides the certain benefits to the women

for a prescribed period before and after child birth.
The Act does not apply to any factory or other
establishment to which the Employees State
Insurance Act 1948 is applicable.
Industrial Employment (Standing orders) Act 1946

The Act requires employers in industrial

establishments to clearly define the conditions of
employment by issuing standing orders duly
certified. Model standing orders issued under the
Act deal with classification of workmen, holidays,
shifts, payment of wages, leaves, termination etc.
The Contract Labour (Regulation & Abolition) Act,
1970

The Act was passed to aid of workers who are

employed through contractors and who have no
direct link with industry for which work is done. 
The Act regulates the employment of contract labour
in certain establishments and prohibits such
employment in certain circumstances.
The Factories Act, 1948

The Act provides that employees should work in

healthy and sanitary conditions  so far as the
manufacturing process will allow and that
precaution to be taken care for their safety and for
the preventions of accidents.
The Employees’ State Insurance Act 1948

The Employees State Insurance Act is a piece of

social security legislation conceived as a means of
extinction of the evils of society, namely disease, dirt,
ignorance and indigence. The object of this Act is to
secure sickness, maternity, disablement, and medical
benefit to employees and dependants’ benefits to the
dependants. These benefits are secured by financial
contributions to the Scheme by employers and
employees.
Shops and Commercial Establishment Act

This Act provide for minimum hours of work, rest

intervals, holidays, annual leave, opening and
closing hours of establishment, payment of wages,
and for restrictive employment of children.
Growth of Labour Legislatoins
 Industrial revolution
-The maximization of profit, even at the cost of the life of
the labourers
 Laissez- faire (the policy of leaving things to take their
own course, without interfering)
 Tea District Emigrant Labour Act, 1832 and Workmen’s
Breach of Contract Act, 1859
 Civil servants from England
-Factories Act 1881, Mines Act 1901
-Workmen Compensation Act 1923
-Indian Trade Union Act, 1926
-Industrial Disputes Act, 1947
-The payment of Wages Act 1936
Nature of labour legislations

The labour legislations are the products of Industrial

Revolution
Labour legislation regards individual as workers, whereas
the general legislations regards him a citizen
Labour legislation seeks to deal with problems arising out
of occupational status of the individual
No jurisdiciton of civil courts
Principles of Modern Labour Legislations

Principle of protection
“To protect those workers who are to protect their interests
on their own and also workers, in particular industries
against the hazards of industrial process”
Principle of social justice
“It aims at removing discrimination suffered by particular
groups of labour”
Principle of Regulation
“It generally seeks to regulate the relationships between the
employers and their associations, on the one hand, and
workers and their organisations, on the other”
Principle of welfare
“To provide certain welfare amenities to the workers, and
often to their family members also”

Principle of social security

“To make available social security benefits under the
coverage of legislations”

Principle of Economic Development

Objectives of the labour legislations
Establishment of justice- Social, Political and Economic
Provisions of opportunities
Protection of weaker section
Maintenance of Industrial Peace
Creation of conditions for economic growth
Guarantee right of workmen to combine and form
association or unions
Ensure human rights and dignity
The classification of Labour Legislations

1. Regulative
 The Trade Union Act, 1926
 The Industrial Disputes Act, 1947
 Industrial Employment (Standing Orders) Act 1946
2. Protective
 Factories Act, 1948
 The Mines Act, 1952
 The Plantations Labour Act, 1951
 The shops and establishment Act
3. Wage-Related Labour Legislations
The Payment of Wages Act, 1936
The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
4. Social Security and Labour welfare Legislations
The Workmen’s Compensation Act, 1923
The Employees’ State Insurance Act, 1948
The Employees PF and Miscellaneous Provisions
Act, 1952
Contract Labour (Regulation and Abolition) Act,
1970
Indian Constitution and Labour Legislations

WE, THE PEOPLE OF INDIA, having solemnly resolved to

constitute India into a [SOVEREIGN, SOCIALIST,
SECULAR, DEMOCRATIC, REPUBLIC] and to secure to
all its citizens:
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity; and to promote
among them all
FRATERNITY assuring the dignity of the individual and
the [unity and integrity of the Nation];
 Fundamental Rights and Labour Legislations
The Right of Equality(Article 14 to 18)

The Right to Freedom (Article 19 to

22)

The Right against exploitation

(Article 23 to 24)

The Right to Constitutional Remedies

(Article 32 to 35)
Directive Principles of state policy and labour
legislations
 Article 38
– Directs state to promote welfare of the people
 To minimize inequality in status, facilities and
opportunities
 Article 39 - State shall direct its policy towards securing
 That citizens, men and women equally, have the right to
an adequate means of livelihood.
 Equal pay for equal work for both men and women
 The health and strength of the workers, men and women
and the tender age of the children not to be abused.
Article 42
 State to make provision for securing just and
humane conditions of work and maternity relief.

Article 43 A
- State shall take steps, by suitable legislations, or in
any other way, to secure the participation of workers
in management
ILO and its influence on Labour Legislation in India
The ILO (International Labor Organization) was set
up in the year 1919, with an aim to improve the
conditions of labors around the world. India was the
founding member of ILO, which has now expanded
its membership to 175 nations. ILO through its
conventions and recommendations helps nations to
draw their own set of labor laws for the better
treatment of the working class, and the preservation
of their rights.
The Objectives of the ILO
Full employment and raising of standards of living
The employment of workers in the occupation in
which they can have the satisfaction.
Policies in regard to wages and earning bonus and
other conditions of work
The effective recognition of the right of Collective
Bargaining
Adequate protection for the life and health of
workers in all occupations
Provision for child welfare and maternity protection
Influence on Indian Labour Legislation

Conditions of work
 Hours of work – Convention 1919
 Weekly rest – Convention 1921
 Minimum wages- Convention 1928
Employment of children and young persons
 Minimum age- convention 1919
 Medical examination of young persons- convention
1921
Employment of Women
 Night work (women)- convention 1948
 Equal remuneration- convention 1951
Health, Safety and Welfare
 The provisions of the Protection against Accidents
-Conventions 1934
 Occupational safety and health- convention 1981
Social Security
 Workmen’s Compensation- Convention 1925
 Equality of treatment- convention 1962
Employment and Unemployment
- Unemployment- convention 1919
THE FACTORIES ACT, 1948.
 In India the first Factories Act was passed in 1881.
 In 1891 another factories Act was passed which extended to the
factories employing 50 or more workers.
 Indian Factories Act 1911, Indian factories( Amendment) 1922,
Factories Act, 1934

 The Factories Act, 1948 came into force on the 1 st day of April,1949 and

extends to the whole of India. It was, in fact, extended to Pondicherry

in 1963, to Goa in 1965 and to the State of Jammu & Kashmir in 1970.

 In Bhikusa Yamasa Kshatriya (P) Ltd. v UOI, the court observed that

the Act has been enacted primarily with the object of protecting
workers employed in factories against industrial and occupational
hazards. For that purpose, it seeks to impose upon the owner or the
occupier certain obligations to protect the workers and to secure for
them employment in conditions conducive to their health and safety.
Scope and Applicability of the Act

“The Act extends to whole of India. The benefits of this

Act are available to persons who are employed in the
factory and be covered within the meaning of the
term ‘worker’ as defined in the Act.
 Definitions

 “Factory” is defined in Section 2(m) of the Act. It means any

premises including the precincts thereof-
i. Whereon ten or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which
a manufacturing process is being carried on with the aid of power,
or is ordinarily so carried on; or
ii. Whereon twenty or more workers are working, or were working
on any day of the preceding twelve months, and in any part of
which a manufacturing process is being carried on without the aid
of power, or is ordinarily so carried on;
 But does not include a mine subject to the operation of the Mines
Act,1952 or a mobile unit belonging to the Armed forces of the
Union, a railway running shed or a hotel, restaurant or eating
place.
 “Manufacturing process" means any process for -
(i) making, altering, repairing, ornamenting, finishing,
packing, oiling, washing, cleaning, breaking up,
demolishing or otherwise treating or adopting any
article or substance with a view to its use, sale,
transport, delivery or disposal; or
(ii) pumping oil, water, sewage, or any other substance; or
(iii) generating, transforming or transmitting power; or
(iv) composing types for printing, printing by letter press,
lithography, photogravure or other similar process or
book-binding ;or
(v) constructing, reconstructing, repairing, refitting,
finishing or breaking up ships or vessels ; [or]
(vi) preserving or storing any article in cold storage;
New Taj Mahal Café Ltd. Mangalore Vs. Inspector of
factories , Mangalore
“the preparation of foodstuffs and other eatables in the
kitchen of a restaurant and use of a refrigerator for treating
or adapting any article with a view to its sale were held to
be manufacturing process”
Ardeshir V. Bombay state (Salt process)
“The process carried out in the salt works comes within the
definition of ‘manufacturing process’ in as much as salt
can be said to have been manufactured from sea water by
the process of treatment and adoption of sea water in to
salt”
Hathras Municipality V. Union of India
“the pumping of water is a manufacturing process according
to the definition given in this Act”
“Worker"

means a person employed directly or by or through any agency

(including a contractor)with or without the knowledge of the
principal employer whether for remuneration or not in any
manufacturing process, or in cleaning any part of the machinery
or premises used for a manufacturing process, or in any other
kind of work incidental to, or connected with the manufacturing
process, or the subject of the manufacturing process 10[but does
not include any member of the armed forces of the Union];
Worker is a person
i) who is employed;
ii) Who is employed either directly or through any agency
iii) Who is employed in any manufacturing process, or in
cleaning any part of the machinery or premises used for
a manufacturing process or in any other kind of work,
incidental to or connected with the manufacturing
process or the subject of the manufacturing process
If above conditions fulfilled, then it is immaterial whether a
person was employed for remuneration of not
 Chintaman Rao Vs State of Madhya Pradesh
A Bidi factory entered in to contracts with independent
contractors known as sattedars were supplied tobacco and bidi
leaves also. The sattedars were neither bound to work in the
factory nor were they bound to prepare the bidis themselves
but could get them prepared by others. They engaged coolies
for rolling bidis and made payments to them. Factory made
payments to the sattedars for work of rolling bidis.
S C Held that
I) Worker was a person employed by the management and
II) There must be a contract of service and a relationship of
master and servant should be there.
Sattedars were independent contractors and that they and the
coolies engaged by them for rolling bidis were not workers
"occupier" of a factory means a person, who has ultimate
control over the affairs of the factory,
Provided that -
in the case of a firm or other association of individuals,
any one of the individual partners or members thereof
shall be deemed to be the occupier;
in the case of a company, any one of the directors, shall be
deemed to be the occupier;
 "adult“
means a person who has completed his eighteenth year of
age ;
 "adolescent"
means a person, who has completed his fifteenth year of age
but has not completed his eighteenth year ;
"child"
means a person who has not completed his fifteenth year of
age ;
"young person"
means a person, who is either a child or an adolescent;
Approval, licensing and registration of
factories
The State Government may make rules -
(a)requiring, for the purposes of this Act, the submission of plans of
any class or description of factories to the Chief Inspector or the
State Government;
(aa) requiring the previous permission in writing of the State
Government or the Chief Inspector to be obtained for the site on
which the factory is to be situated and for the construction or
extension of any factory or class or description of factories;
b)requiring for the purpose of considering applications for such
permission the submission of plans and specifications;
c) prescribing the nature of such plans and specifications and by whom
they shall be certified ;
d)requiring the registration and licensing of factories or any class or
description of factories, and prescribing the fees payable for such
registration and licensing and for the renewal of licenses;
e)requiring that no license shall be granted or renewed unless the
notice specified in section 7(Notice by occupier) has been given.
2) If on an application for permission referred accompanied
by the plans and specifications required by the rules made
under clause(b)of that sub-section sent to
the[State]Government or Chief Inspector by registered
post, no order is communicated to the applicant within
three months from the date on which it is so sent the
permission applied for in the said application shall be
deemed to have been granted.
 Notice by Occupier
The occupier shall, at least fifteen days before he begins to
occupy or, use any premises as a factory, sent to the Chief
Inspector a written notice containing -
a) the name and situation of the factory;
b)the name and address of the occupier;
(bb) the name and address of the owner of the premises or
building (including the precincts thereof) referred to in
section 93] ;
c) that address to which communication relating to the factory
may be sent;
d) the nature of the manufacturing process -
(i) carried on in the factory during the last twelve months in the case of
factories in existence on the date of the commencement of this Act, and
(ii) to be carried on in the factory during the next twelve months in the case
of all factories;
(e) the total rated horse power installed or to be installed in the factory,
which shall not include the rated horse power of any separate stand-
by plant];
f) the name of the manager of the factory for the purposes of this Act;
g) the number of workers likely to be employed in the factory;
h) the average number of workers per day employed during the last
twelve months in the case of a factory in existence on the date of the
commencement of this Act;
i )such other particulars as may be prescribed.
Whenever a new manager is appointed, the occupier shall
send to the Inspector a written notice and to the Chief
Inspector a copy thereof within seven days from the date
on which such person takes over charge.

During and period for which no person has been

designated as manager of a factory or during which the
person designated does not manage the factory, any person
found acting as manager, or if no such person is found, the
occupier himself, shall be deemed to be the manager of
the factory for the purposes of this Act.
 General duties of the Occupier

Plant maintenance that is safe and without risk to health of

workers
Safeguard health and safety with the use, handling,
storage and transport of articles and substance
Provide information, instruction, training and supervision
to ensure health and safety of all workers
Monitoring of work environment
Preparing written statements of policy with respect to the
health and safety of workers and to give notice to the
workers as per rules.
General duties of manufacturers, etc. as regards
articles and substances for use in factories
 (1) Every person who designs, manufactures, imports or
supplies any article for use in any factory shall -
a) ensure, so far as is reasonably practicable, that the article
is so designed and constructed as to be safe and without
risks to the health of the workers when properly used;
b) carry out or arrange for the carrying out of such tests
and examination as may be considered necessary for the
effective implementation of the provisions of clause (a);
c) take such steps as may be necessary to ensure that adequate
information will be available -
 in connection with the use of the article in any factory;
 about the use for which it is designed and tested; and
 about any conditions necessary to ensure that the article, when
put to such use, will be safe, and without risks to the health of
workers:
 Provided that where an article is designed or manufactured outside
India, it shall be obligatory on the part of the importer to see -
- that the article conforms to the same standards if such article is
manufactured in India, or
- if the standards adopted in the country outside for the manufacture of
such article is above the standards adopted in India, that the article
conforms to such standards.
The Inspecting Staff
The ![State] Government may, by notification in the Official
Gazette, appoint such persons as posses the prescribed
qualification to be inspectors for the purposes of this Act and
may assign to them such local limits as it may think fit.

Types of Inspectors
Chief Inspector, Additional Chief Inspector, Joint Chief
Inspector, Deputy chief inspectors, Inspectors and Additional
Inspectors
No person shall be appointed or having been so appointed, shall
continue to hold office, who is or becomes directly or indirectly
interested in a factory or in any process or business carried on
therein or in any patent or machinery connected therewith.
Powers of Inspectors
(a) enter with such assistants, being persons in the service
of the Government, or any local or other public authority
or with an expert, as he thinks fit, any place which is
used, or which he has reason to believe is used as a
factory;
(b) make examination of the premises, plant, machinery,
article or substance;
(c) inquire into any accident or dangerous occurrence,
whether resulting in bodily injury, disability or not, and
take on the spot or otherwise statements of any person
which he may consider necessary for such inquiry;
(d) require the production of any prescribed register,
record or other document relating to the factory;
(e) seize, or take copies of, any register, record or
other document or any portion thereof, as he may
consider necessary in respect of any offence
under this Act, which he has reason to believe,
has been committed;
(f) direct the occupier that any premises or any part
thereof, or anything therein, shall be left
undisturbed (whether generally or in particular
respects) for so long as is necessary for the
purpose of any examination;
(g) take measurements and photographs and make
such recordings as he considers necessary for
the purpose of any examination, taking with
him any necessary instrument or equipment;
(h) in case of any article or substance which appears to him as
having caused or is likely to cause danger to the health or
safety of the workers, direct t it to be dismantled or subject it to
any process or test (but not so as to damage or destroy it unless
the same is, in the circumstances necessary, for carrying out the
purposes of this Act), and take possession of any such article or
substance or a part thereof, and detain it for so long as is
necessary for such examination;
(i) exercise such other powers as may be prescribed]
 Certifying Surgeons

The ![State] Government may appoint qualified

medical practitioners to be certifying surgeons for
the purposes of this Act within such local limits or
for such factory or class or description of factories
as it may assign to them respectively.
Duties of certifying surgeons
 the examination and certification of young
persons under this Act;
 the examination of persons engaged in factories in
such dangerous occupations or processes as may
be prescribed;
 the exercising of such medical supervisions as may be
prescribed for any factory or class or description of
factories where -
cases of illness have occurred, which it is reasonable to
believe are due to the nature of the manufacturing
process carried on, or other conditions of work
prevailing therein; by reason of any change in the
manufacturing carried on or in the substances used
therein or by reason of the adoption of any new
manufacturing process, or of any new substance for
use in a manufacturing process, there is likelihood of
injury to the health of workers employed in that
manufacturing process;
young persons are, about to be, employed in any work
which is likely to cause injury to their health.
 HEALTH
Cleanliness
 Dust and fumes should removed daily
 Floors, stair-cases and passages should be cleaned regularly
 Washing of interior walls and roofs should take place at least
once in 14 months
 Where walls and roofs are painted with washable water paint,
be repainted after every three years and where oil paint is
used at least once in five years
 All doors and window-frames and other wooden or metallic
framework and shutters shall be kept painted or varnished
and the painting or varnishing shall be carried out at least
once in every period of five years;
Disposal of wastes and effluents
Effective arrangements shall be made in every factory for
the treatment of wastes and effluents due to the
manufacturing process carried on therein, so as to render
them harmless, and for their disposal.

Ventilation and temperature

 Provision for adequate ventilation by the circulation of fresh
air
 Provision for such a temperature as will secure to workers
therein reasonable conditions of comfort and prevent injury to
health;
 and in particular,-
walls and roofs shall be of such material and so
designed that such temperature shall not be exceeded
but kept as low as practicable;
where the nature of the work carried on in the factories
involves, or is likely to involve, the production of
excessively high temperatures, such adequate
measures as are practicable shall be taken to protect the
workers there from, by separating the process, which
produces such temperatures from the workroom, by
insulating the hot parts or by other effective means.
Dust and fume
In every factory in which, by reason of the manufacturing
process carried on any dust or fume or other impurity is
likely to be injurious or offensive to the workers employed
therein, effective measures shall be taken to prevent its
inhalation and accumulation in any workroom, and if any
exhaust appliance is necessary for this purpose, it shall be
applied as near as possible to the origin of the dust, fume
or other impurity.
Artificial humidification
In respect of all factories in which the humidity of the air is
artificially increased, the ![State] Government may make
rules, -
 prescribing standards of humidification;
 regulating the methods used for artificially increasing the
humidity of the air;
 directing prescribed tests for determining the humidity
of the air to be correctly carried out and recorded;
 prescribing methods to be adopted for securing adequate
ventilation and cooling of the air in the workrooms.
Overcrowding
 No room in any factory shall be overcrowded to an
extent injurious to the health of the workers employed
therein.
 Each worker should be provided with at least 14.2 cubic
meters of space

Lighting
In every part of a factory where workers are working or
passing there shall be provided and maintained sufficient
and suitable lighting, natural or artificial, or both.
Drinking water
 In every factory effective arrangements shall be made to
provide and maintain at a suitable points conveniently
situated for all workers employed therein a sufficient supply
of wholesome drinking water.
 All such points shall be legibly marked "drinking water“ in
a language understood by a majority of the workers
employed in the factory and no such points shall be situated
within [six meters of any washing place, urinal, latrine,
spittoon, open drain or any other source of contamination]
unless a shorter distance is approved in writing by the Chief
Inspector.
 In every factory wherein more than two hundred and fifty
workers are ordinarily employed, provisions shall be made
for cooling drinking water during hot weather by effective
means and for distribution thereof.
Latrines and urinals
Spittoons
SAFETY OF WORKERS..

Fencing of machinery
Machines in motions
there should be examination of machines in motion.
No women or child should be allowed to work on prime
mover etc. when it is in motion.
Employment of young persons on dangerous machines
no young person should be allowed to work on dangerous
machines (unless he has been trained, and is under
supervision).
Self acting machines
make sure that no person should walk in a space
where self action machines are in motion.
Precautions against Dangerous Fumes and Gases
Precaution in case of fire
Excessive weights
Protection of eyes
Explosive or inflammable dust, gas, etc.
Safety officers
Provisions relating to hazardous process

Constitution of site appraisal Committee

a) The chief Inspector
b) Representatives of the Central and State Board for the
prevention and control of water pollution
c) Representative of the Central and State Board for the
prevention and control of air pollution
d) Representative of the Dept of environment in the state
e) Representative of the Meteorological Dept
f) An expert in the field of occupational health
g) Representative of the Town planning department of
state
h) A Scientist having specialized knowledge of the
hazardous process
g) A representative of local authority
i) Not more than three other persons as deemed fit by the
state govt
 Compulsory disclosure of information by the occupier

 The occupier of every factory involving a hazardous process

shall disclose all information regarding dangers, including
health hazards and the measures to overcome such hazards, to
the workers employed in the factory, the Chief Inspector, the
local authority within whose jurisdiction the factory is situated
and the general public in the vicinity.
 The occupier shall, at the time of registering the factory
involving a hazardous process lay down a detailed policy with
respect to the health and safety of the workers employed
therein and intimate such policy to the Chief Inspector and the
local authority
 Every occupier shall, with the approval of the Chief Inspector,
draw up an onsite emergency plan and detailed disaster control
measures for his factory and make known to the workers
employed therein and to the general public living in the
vicinity of the factory the safety measures required to be taken
in the event of an accident taking place.
 Where any occupier of a factory contravenes the above
provisions, the license issued shall be liable for cancellation.
Specific responsibility of the occupier in relation
to hazardous processes
Maintain accurate up-to-date health records
Appoint persons who posses qualifications and experience
in handling hazardous substances and are competent to
supervise such handling within the factory
Provide for medical examination of every worker

Workers participation in safety management

Right of workers to warn about imminent danger
Welfare
 Washing facilities
 Facilities for storing and drying clothing
 Facilities for sitting
 First-aid appliances
 In every factory wherein more than five hundred
workers are there shall be provided and maintained
an ambulance room, containing the prescribed
equipment and in the charge of such medical and
nursing staff
Canteens
The State Government may make rules requiring
that in any specified factory wherein more than
two hundred and fifty workers are ordinarily
employed, a canteen or canteens shall be
provided and maintained by the occupier for the
use of the workers.
 Shelters, rest-rooms and lunch-rooms

In every factory wherein more than one hundred

and fifty workers are ordinarily employed adequate
and suitable shelters or rest-rooms and a suitable
lunch- room, with provision for drinking water, where
workers can eat meals brought by them, shall be
provided and maintained for the use of the workers :
Crèches
 In every factory wherein more than thirty women
workers are ordinarily employed there shall be provided
and maintained a suitable room or rooms for the use of
children under the age of six years of such women.
 Such rooms shall provide adequate accommodation,
shall be adequately lighted and ventilated, shall be
maintained in a clean and sanitary condition and shall be
under the charge of women trained in the care of
children and infants.
Welfare Officers
 In every factory wherein five hundred or more workers
are ordinarily employed, the occupiers shall employ in the
factory welfare officers as may be prescribed.
 Working Hours of Adults
Weekly hours 
 Weekly hours not more than 48

 Daily hours, not more than 9 hours.

 Intervals for rest at least ½ hour on working for 5 hours

 Spread over not more than 10½ hours

 Overlapping shifts prohibited

 Extra wages for overtime double than normal rate of wages
 Restrictions on employment of women before 6AM and
beyond 7 PM
 Notice of periods of work for adults
 There shall be displayed and correctly maintained in
every factory, a notice of periods of work for adults,
showing clearly for every day the periods during which
adult workers may be required to work.
Register of adult workers
 The manager of every factory shall maintain a register of adult
workers, to be available to the Inspector at all times during
working hours, or when any work is being carried on in the
factory, showing :-
 the name of each adult worker in the factory ;
 the nature of his worker ;
 the group, if any, in which he is included;
 where his group works on shift, the relay to which he is
allotted ; and
 such other particulars as may be prescribed :
Working hour for children
 Child below age of 14 cannot be employed.
 Child above 14 but below 15 years of age can be employed
only for 4.5 hours per day.
 He should be certified fit by a certifying surgeon.
 He cannot be employed during night between 10 pm to 6 am.
 A person above 15 but below 18 years of age is termed as
adolescent‘. He can be employed as an adult if he has a
certificate of fitness for a full day's work from certifying
surgeon.
 Register of child 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.
Notice of certain accident
 Where in any factory an accident occurs which causes
death, or which causes bodily injury by reason of which
the person injured is prevented from working for a
period of forty-eight hours or more immediately
following the accident, or which is of such nature as may
be prescribed in this behalf, the manager of the factory
shall send notice thereof to such authorities, in such form
and within such time, as may be prescribed.
 Notice of certain dangerous occurrences
 Notice of certain diseases
 OFFENCE
 ·   For contravention of the Provisions of
the Act or Rules
 ·   On Continuation of contravention
 ·   On contravention of Chapter IV
pertaining to safety or dangerous
operations.
 ·  Subsequent contravention of some
provisions
 ·   Obstructing Inspectors
 ·   Wrongful disclosing result pertaining to
results of analysis.
 ·   For contravention of the provisions of
Sec.41B, 41C and 41H pertaining to
compulsory disclosure of information by
occupier, specific responsibility of occupier
or right of workers to warn imminent
danger.
 PENALTIES
 ·   Imprisonment upto 2 years or fine upto
Rs.1,00,000 or both
 ·   Rs.1000 per day
·   Not less than Rs.25000 in case of death.
·   Not less than Rs.5000 in case of serious
injuries.
 ·   Imprisonment upto 3 years or fine not
less than Rs.10, 000 which may extend to
Rs.2, 00,000.
 ·   Imprisonment upto 6 months or fine
upto Rs.10, 000 or both.
 ·   Imprisonment upto 6 months or fine
upto Rs.10, 000 or both.
·   Imprisonment upto 7 years with fine
upto Rs.2, 00,000 and on continuation fine
@ Rs.5, 000 per day.
  Imprisonment of 10 years when
contravention continues for one year.
 THE CONTRACT LABOUR
( REGULATION & ABOLITION ) ACT, 1970
PREAMBLE/OBJECTIVE
 AN ACT TO -

 regulate the employment of contract

labour in certain establishments
APPLICABLITY
 Every establishment where 20 or more workmen
are or were employed as contract labour on any
day in last 12 months

 Every contractor who employs or who employed

20 or more workmen on any day in last 12 months
NOT APPLICABLE -
•if the work is of intermittent or casual
nature

Explanation.-- For the purpose of this sub-section, work

performed in an establishment shall not be deemed to be
of an intermittent nature--
(i) if it was performed for more than one hundred and
twenty days in the preceding twelve months, or
(ii) if it is of a seasonal character and is performed for
more than sixty days in a year.
Definition
"contractor",
in relation to an establishment, means a person who
undertakes to produce a given result for the establishment,
other than a mere supply of goods of articles of
manufacture to such establishment, through contract
labour or who supplies contract labour for any work of the
establishment and includes a sub-contractor
Contract Labour –
A workman hired in or in connection with
work of an establishment, by or through a
contractor, with or without the knowledge of
principal employer.
Principal Employer –

 In relation to any Govt. Office or Dept. or a

Local Authority, head of that Office/Dept. or
such other Officer as the Govt. or the Local
Authority may specify in this behalf.
 In case of factory, the owner or occupier of
the factory, & manager of the factory, if any
so named under the Factories Act, 1948.
 In case of mine, owner or agent of mine &
the manager of the mine, if any so named.
 In any other estt., any person responsible
for the supervision & control of the estt.
REGISTRATION OF ESTABLISHMENT

 Principal Employer of an establishment to make an

application within stipulated time frame, to the
Registering Officer (Asst. Comm.of Labour)

 Revocation of RC in certain cases -

 Misrepresentation or suppression of any material fact
 If the RC becomes useless or ineffective & therefore,
requires to be revoked
 Effect of Non-Registration -
If -
 the estt. has not been registered under the Act
within the stipulated time ; or

 the RC has been revoked,

the principal employer of the estt. to which this Act

applies, shall not employ contract labour after
expiry of period or after the revocation of RC.
 LICENSING OF CONTRACTORS

 No Contractor shall undertake or execute any work

thro’ contract labour except under and in accordance
with a license issued by the Licensing Officer.

Contractor to make an application within stipulated

time frame, to the Licensing Officer.

 A License shall contain -

 Such conditions including, in particular, hours of
work, fixation of wages and other essential
amenities in respect of contract labour.
Welfare and Health of contract
labour

 Canteens in organisations employing 100 or more

employees
 Rest Rooms – where in contract labour required to
halt at night in connection with the work of
establishment
 Other facilities - Drinking Water, Latrines & Urinals,
Washing facilities
 First Aid facilities
 Creches
Responsibility for payment of wages

 A contractor shall be responsible for payment of wages to

each worker employed by him as contract labour
 Every principal employer shall nominate a representative
duly authorized by him to be present at the time of
disbursement of wages by the contractor and it shall be
the duty of such representative to certify the amounts
paid as wages
 It shall be the duty of the contractor to ensure the
disbursement of wages in the presence of the authorized
representative of the principal employer.
 In case the contractor fails to make payment of wages
 within the prescribed period or makes short payment,
then the principal employer shall be liable to make
payment of wages in full or the unpaid balance due, as
the case may be, to the contract labour employed by the
contractor and recover the amount so paid from the
contractor either by deduction from any amount payable
to the contractor under any contract or as a debt payable
by the contractor.
Registers and Records to be maintained
Abstract of the Act
Wage Register
OT Register
Fine Register
Damage Register
Advance Register
Employment Card
Penalties
 Obstructions - punishable with imprisonment for a
term which may extend to three months, or with fine
which may extend to five hundred rupees, or with
both
 Refuses to produce on the demand of an inspector any
register or other document-punishable with imprisonment
for a term which may extend to three months, or with fine
which may extend to five hundred rupees, or with both.
Contravention of provisions regarding employment of
contract labour - shall be punishable with imprisonment
for a term which may extend to three months, or with fine
which may extend to one thousand rupees, or with both
The Trade Unions Act, 1926
Preamble
‘An Act to provide for the registration of Trade Unions and in
certain respects to define the law relating to registered Trade
Unions.’

It extends to the whole of India.

Section 2: Definitions

Appropriate Government:
For the trade unions whose objects are not confined to one state, the
appropriate government will be the Central Government, for others it’ll be
the State Government.

Trade dispute:
It 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 conditions of
labour, of any person.

Workmen:
Means all persons employed in trade or industry whether or not in the
employment of the employer with whom the trade dispute arises.
 Trade Union:
It means any combination whether temporary or permanent, formed
primarily for the purpose of

between workmen and employers or between

o regulating the relations
workmen and workmen, or between employers and employers,

o for imposing restrictive condition on the conduct of any trade or business,

o It can include any federation of two or more Trade Unions.

Registration of Trade Unions
Section 3: Appointment of Registrars
The appropriate Government appoints a person to be the Registrar of
Trade Unions for each State. It may also appoint Additional and
Deputy Registrars of Trade Unions.
Section 4: Mode of registration
Any seven or more members of a Trade Union may apply for
registration of the Trade Union under this Act:

 by subscribing their names to the rules of the Trade Union

 and by complying with the provisions of this Act with respect to

registration.

An application for the registration of a Trade Union shall not become

invalid merely for the reason that at any time after the date of the
application, but before the registration of the Trade Union some of the
applicants (not exceeding half of the total number of the persons who
made the application) have ceased to be members of the Trade Union.
Section 5: Application for registration
Application for registration of a Trade Union shall be made to the Registrar
and shall be accompanied by:

 copy of the rules of the Trade Union

 statement of the following particulars, namely:-
 The names, occupations and addresses of the members making the
application.
 The name of the Trade Union and the address of its head office.

Where a Trade Union has been in existence for more than one year before
the making of an application for its registration it needs to submit a
statement of the assets and liabilities held by it.
Section 6: Provisions to be contained in the rules of Trade
Union
A Trade Union shall not be entitled to registration under this Act,
unless the executive is constituted in accordance with the provisions
of this Act, and the rules provided for following matters:
 the name of the Trade Union
 the object for which the Trade Union has been established
 the purposes for which the general funds of the Trade Union shall be
applicable.
 the maintenance of a list of the members of the Trade Union and adequate
facilities
 the admission of members
 the conditions under which any member shall be entitled to any benefit or
any fine or forfeiture may be imposed on the members;
 the manner in which the rules shall be amended, varied or rescinded;
 the manner in which the members of the executive and the other of the Trade
Union shall be appointed and removed
Section 7: Power to call for further particulars and to
require alteration of name
 The Registrar can call for further information for the
purpose of checking the compliance of the application
with respect to Sec 5 and Sec 6 of the Trade Union Act.

 He may refuse to register the Trade Union until such information is

supplied.

 If the name under which a Trade Union is proposed to be

registered is identical or it nearly resembles with that of
any other existing Trade Union, the Registrar shall require
the persons applying for registration to alter the name of
the Trade Union stated in the application.
Section 8: Registration
The Registrar, on being satisfied that the Union has
complied with all the requirements of this Act in regard to
registration, shall register the Trade Union.

Note:
This section is mandatory. The Registrar cannot refuse to
register a Trade Union if the application for registration
complies with the technical requirement as laid down in
this Act.
Section 9: Certificate of Registration
The Registrar registering a Trade Union under Section 8,
shall issue a certificate of registration which shall be
conclusive that the Trade Union has been duly registered
under this Act.
Section 10: Cancellation of Registration
A certificate of registration of a Trade Union may be withdrawn or cancelled
by the Registrar:

 On the application of the Trade Union

 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.
Section 11: Appeal
Any person aggrieved by any refusal of the Registrar to
register a Trade Union or by the withdrawal or cancellation
of a certificate of registration may appeal to the prescribed
courts.

The Appellate Court may dismiss the appeal, or pass an

order directing the Registrar to register the Union and to
issue a certificate of registration or setting aside the order
for withdrawal or cancellation of the certificate, as the
case may be, and the registrar shall comply with such
order.
Section 12: Registered office
All communications and notice to a registered
Trade Union may be addressed to its registered
office.

Notice of any change in the address of the head office

shall be given within fourteen days of such change to the
Registrar in writing.
Section 13: Incorporation of registered Trade Unions
Every registered Trade Union:

shall be a body corporate by the name under which it is

registered

shall have perpetual succession and a common seal

power to acquire and hold both movable and immovable

property

it can, by the said name sue and be sued.

Section 14: Certain Acts not to apply to registered
Trade Unions
The Societies Registration Act, 1863.

The Co-operative Societies Act, 1912.

The Companies Act, 1956

 Section 15: Objects on which general funds may be
spent

 The payment of salaries, allowances and expenses to office bearers of the

Trade Union.

 The payment of expenses for the administration of the Trade Union

including audit of the accounts of the general funds.

 The compensation to members for loss arising out of trade disputes;

 Allowance to members or their dependants on account of death, old age,

sickness, accidents or unemployment of such members;

 The provision of educational, social or religious benefits for members or for

the dependants of members;
 The upkeep of a periodical published mainly for the purposes of
discussing questions affecting employers or workmen;

 Any other object notified by the appropriate Government in the official

Gazette.
Section 16: Constitution of a separate fund for political
purposes

A registered Trade Union may constitute a separate fund, from which

payments may be made, for the promotion of the civic and political interest
of its members.
The objects are:
 the payment of any expenses incurred, either directly or indirectly, by a
candidate or prospective candidate for election as a member of any
legislative body
 the holding of any meeting or the distribution of any literature or documents
in support of any such candidate or prospective candidate; or
 the maintenance of any person who is a member of any legislative body or
 the holding of political meetings of any kind, or the distribution of political
literature or political documents of any kind.
No member shall be compelled to contribute to the
fund.

Member who does not contribute to the said fund shall

not be excluded from any benefits of the Trade Union

Contribution to the said fund shall not be made a

condition for admission to the Trade Union.
Section 17: Criminal conspiracy in trade disputes
No officers or members of a registered Trade union shall be
liable to punishment under sub-section (2)of Section 120-B
of the Indian Penal Code, in respect of any agreement
made between the members for the purpose of furthering
any such object of the Trade Union as is specified in
Section 15 unless the agreement is an agreement to
commit an offence.
Section 18: Immunity from civil suit to certain cases

 No suit or other legal proceeding shall be maintainable in any

Civil Court against any registered Trade Union or any member
in respect of any act done in contemplation or furtherance of a
trade dispute to which a member of the Trade Union is a party
on the ground only that such act induces some other person
to break a contract of employment, or that it is in interference
with the trade, business or employment of some other person
or with the right of some other person to dispose of his capital
of his labour as he wills.
Section 20: Right to inspect books of Trade Union

The account books of a registered Trade Union and the list of

members shall be open to inspection by any member of the
Trade Union.
Section 21: Rights of minors to membership of Trade
Union
Any person who has attained the age of fifteen years may
be a member of registered Trade Union subject to any rules
of the Trade Union to the contrary.
Section 21A: Disqualification of office bearers of
Trade Union
A person shall be disqualified for being chosen as, and for
being a member of the executive or any other office-
bearer or registered Trade Union if-

He has not attained the age of eighteen years;

He has been convicted by a Court in India of any offence
involving moral turpitude and sentenced to
imprisonment, unless a period of five years has elapsed
since his release.
Section 23: Change of name
Any registered Trade Union may, with the consent of not
less than two-thirds of the total number of its members
and subject to the provisions of Section 25 change its
name.
Section 24: Amalgamation of Trade Union
Any two or more registered Trade Unions may become
amalgamated together as one Trade Union provided that
the votes of at least one-half of the members of each such
Trade Union is recorded, and that at least sixty percent of
the votes recorded are in favour of the proposal.
Section 25: Notice of change of name or
amalgamations
Notice in writing of every change of name and every amalgamation
shall be sent to the Registrar, signed,

 in the case of change of name, by the Secretary and by seven members of

the Trade Union changing its name

 in the case of an amalgamation by the Secretary and by seven members of

each and every Trade Union which is amalgamating.
Section 26: Effects of change in name and of
amalgamation
The change in the name of a registered Trade Union shall not effect

 any rights or obligation of the Trade Union

 or render defective any legal proceeding by or against the Trade Union,

 legal proceeding may be continued in its new name.

An amalgamation of two or more registered Trade Unions shall not

prejudice any right of any such Trade Unions or any right of a creditor
or any of them.
Section 27: Dissolution
When a registered Trade Union is dissolved, notice for the dissolution
signed by seven members and by the Secretary of the Trade Union
shall, within fourteen days of the dissolution, be sent to the Registrar.

Where the dissolution of a registered Trade Union has been registered

and the rules of the Trade Union do not provide for the distribution and
funds, the Registrar shall divide the funds amongst the member in such
manner as may be prescribed.
Section 28: Returns
Every registered Trade Union is required to send a general statement,
of all receipts and expenditure audited in the prescribed manner, to the
Registrar annually on or before such date as may be prescribed of
during the year.
Regulations
Section 29: Power to make regulations

The appropriate Government may make regulations for the purpose of

carrying into effect the provisions of this Act. Such regulations may
provided for all or any of the following matters:

 The manner in which Trade Union and the rules of Trade Unions shall be
registered and the fees payable on registration;

 The transfer of registration in the case of any registered Trade Union which has
changed its head office from one State to another;

 The manner in which, and the qualifications of persons by whom, accounts of

registered Trade Unions or of any class of such Unions shall be audited;
Sec 31-PENALTIES AND PROCEDURE
 Failure to submit returns
 Supplying false information regarding Trade Unions
 Recognition of Trade Union
 Conditions for Recognition
Trade Unions (Amendment) Act, 1947, s. 25D
 All its ordinary members are workmen employed in the
same industry or in industries closely allied to or
connected with another;
 It is representative of all the workmen employed by the
employer in that industry or those industries
 that its rules do not provide for the procedure for
declaring a strike;
 that its rules provide that a meeting of its executive will
be held at least once in every six months; and
 That it is a registered trade union and that it has complied
with all provisions of this Act.
 Rights of Recognised TU

 To raise issue and enter into collective agreements with

employers on general questions concerning terms of
employment and conditions of service of workers
 To collect membership fees/subscriptions payable by members
to the union
 To put up a notice board in the premises of the undertaking in
which its members are employed and affix notices relating to
meeting, statements of accounts of its income and expenditure
and other announcements which are not abusive, indecent or
otherwise contrary to the Code;
For the purpose of prevention or settlement of an industrial
dispute:

 (a) to hold discussion with the employees who are members of

the union at a suitable place or places within the premises of
office/factory/establishment as mutually agreed upon;
 (b) to meet and discuss with an employer or any person
appointed by him for the purpose, the grievance of its members
employed in the undertaking; and
 (c) to inspect to prior arrangement, in an undertaking, any
place where any member of the union is employed;
 To nominate its representatives on the grievance committee
constituted under the grievance procedure in an establishment;
 To nominate its representative on joint management councils,
and committees for instance production committee, welfare
committee, canteen committee, house allotment committees set
up by managements
..\..\..\..\My documents\My Videos\YouTube_-_Charlie
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THE INDUSTRIAL DISPUTES ACT,
1947
Objective
“An Act to make provision for the investigation and
settlement of industrial disputes”
Definitions
“Industry”
means any systematic activity carried on by co-operation
between an employer and his workmen(whether such
workmen are employed by such employer directly or by or
through any agency, including a contractor) for the
production ,supply or distribution of goods or services with a
view to satisfy human wants or wishes (not being wants or
wishes which are merely spiritual or religious in nature),
whether or not,-
any capital has been invested for the purpose of carrying on
such activity; or
such activity is carried on with a motive to make any gain or
profit,
but does not include-
agricultural operation
hospitals or dispensaries
-educational, scientific, research or training institutions;
institutions owned or managed by organisations wholly or
substantially engaged in any charitable, social or
philanthropic service
khadi or village industries
any activity, being a profession practised by an individual or
body or individuals, if the number of persons employed by
the individual or body of individuals in relation to such
profession is less than ten; or
any activity, being an activity carried on by a co-operative
society or a club
The triple test
Systematic Activity
Cooperation between employer and employee
Production and/ or distribution of goods and services
calculated to satisfy human wants and wishes
“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 of
employment or with the conditions of labour, of any
persons;
“Lay-off”
means the failure, refusal or inability of an employer on
account of shortage of coal, power or raw materials or the
accumulation of stocks or the breakdown of machinery [or
natural calamity or for any other connected reason] to give
employment to a workman whose name is borne on the
muster rolls of his industrial establishment and who has
not been retrenched.
“Lock-out”
means the temporary closing of 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;

“Closure’
means the permanent closing down of a place of employ
or part thereof
“Retrenchment”
 means the termination by the employer of the service of a workman for
any reason whatsoever, otherwise than as a punishment inflicted by way
of disciplinary action but does not include-
 (a) Voluntary retirement of the workman; or

 (b) Retirement of the workman on reaching the age of Superannuation

if the contract of employment between the employer and the workman
concerned contains a stipulation in that behalf; or

 (bb) Termination of the service of the workman as a result of the non-

renewal of the contract of employment between the employer and the
workman concerned on its expiry or of such contract being terminated
under a stipulation in that behalf contained therein; or]
 (c) Termination of the service of a workman on the ground of continued
ill-health;]
“Settlement”
means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between the
employer and workmen arrived at otherwise than in the
course of conciliation proceeding where such agreement
has been signed by the parties thereto in such manner as
may be prescribed and a copy thereof has been sent to the
appropriate Government and the conciliation officer
“Strike”
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;
“Workman”
means any person (including an apprentice) employed in
any industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory work for
hire or reward, whether the terms of employment be
express or implied, and for the purposes of any proceeding
under this Act in relation to an industrial dispute, includes
any such person who has been dismissed, discharged or
retrenched in connection with, or as a consequence of, that
dispute, or whose dismissal, discharge or retrenchment has
led to that dispute,
but does not include any such person-
(i) Who is subject to the Air Force Act, 1950 (45of l950),or
the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62
of 1957); or
(ii) Who is employed in the police service or as an officer or
other employee of a prison; or
(iii) Who is employed mainly in a managerial or
administrative capacity; or
(iv) Who, being employed in a supervisory capacity, draws
wages exceeding ten thousand rupees per mensem or
exercises, either by the nature of the duties attached to the
office or by reason of the powers vested in him, functions
mainly of a managerial nature
AUTHORITIES UNDER THE
ACT
Works Committee. –
In the case of any industrial establishment in which one
hundred or more workmen are employed or have been
employed on any day in the preceding twelve months,
employer to constitute in the prescribed manner a Works
Committee consisting of representatives of employers and
workmen engaged in the establishment
Duties of works committee
To promote the good relation between employer and
employee
To achieve above object, it is their duty to comment
upon the matters of common interest
Creating a sense of partnership
Conciliation Officer
The appropriate Government may, appoint such number of
persons as it think--, fit, to be conciliation officers, charged
with the duty of mediating in and promoting the settlement
of industrial disputes
Duties :
 To hold conciliation proceedings.
 To investigate the dispute
 To send a report and memorandum of settlement
to appropriate government
 To send a full report
Powers :
Power to enter premises
Power to call for and inspect documents.
Boards of Conciliation. –
The appropriate Government may constitute a Board of
Conciliation for promoting the settlement of an industrial
dispute.
 A Board shall consist of a chairman and two or four other
members, as the appropriate Government thinks fit.
The chairman shall be an independent person and the
other members shall be persons appointed in equal
numbers to represent the parties to the dispute
Courts of Inquiry. –
It shall inquire and make a report ordinarily within a
period of six months from the commencement of inquiry
Duties :
 To inquire into the matters referred to it and report thereon
 To stand by the principles of fairplay and justice
Powers :
 Power to enter premises
 Power of civil court
Labour Court - It will be presided over by Presiding
Officer
Powers of Labour Court
Interpretation of Standing Orders
Violation of Standing Orders
Discharge or dismissal of a workman
Withdrawal of any customary concession or privilege
Illegality or otherwise of a strike or lock-out
Other matters which are not under Industrial Tribunal
Tribunal
The tribunal will be presided over by Presiding Officer
Powers
• Wages, including period and mode of payment
• Compensatory and other allowances
• Hours of work and rest intervals
• Leave with wages and holidays
• Bonus, profit sharing, provident fund and gratuity
• Shift working changes
• Classification by grades
• Rules of discipline
• Rationalization and retrenchment of workmen.
National Tribunal…
National Tribunal is formed by Central Government for
adjudication of industrial disputes of national importance
or where industrial establishments situated in more than
one States are involved
GRIEVANCE REDRESSAL MACHINERY
Every industrial establishment employing fifty or more
workmen shall have one or more Grievance Redressal
Committee for the resolution of disputes arising out of
individual grievances.
The Grievance Redressal Committee shall consist of equal
number of members from the employer and the workmen.
The chairperson of the Grievance Redressal Committee
shall be selected from the employer and from among the
workmen alternatively on rotation basis every year
 The total number of members of the Grievance Redressal
Committee shall not exceed more than six:
 Provided that there shall be, as far as practicable, one woman
member if the Grievance Redressal Committee has two members
and in case the number of members are more than two, the
number of women members may be increased proportionately.
 The Grievance Redressal Committee may complete its
proceedings within forty-five days on receipt of a written
application by or on behalf of the aggrieved party.
 The workman who is aggrieved of the decision of the Grievance
Redressal Committee may prefer an appeal to the employer
against the decision of Grievance Redressal Committee and the
employer shall, within one month from the date of receipt of
such appeal, dispose off the same and send a copy of his decision
to the workman concerned.
Notice of change

NOTICE OF CHANGE IN CONDITIONS OF SERVICE

 No employer who proposes to effect any change in the

conditions of service applicable to any workmen in respect of
any matter specified in the fourth schedule shall effect such
change.
(a) Without giving to workmen likely to be affected by such
change a notice in the prescribed manner of the nature of the
change proposed to be effected.
(b) Within 21 days of giving such notice sec(9)
Conditions of Service for Change of which Notice is to
be given
 Wages, including the period and mode of payment;
 Contribution paid, or payable, by the employer to any provident
fund or pension fund or for the benefit of the workmen under
any law for the time being in force; 
 Compensatory and other allowances;
 Hours of work and rest intervals; 
 Leave with wages and holidays;
 Starting alteration or discontinuance of shift working otherwise
than in accordance with standing orders;
 Classification by grades;
 Withdrawal of any customary concession or privilege or
change in usage;
 Introduction of new rules of discipline, or alteration of existing
rules, except in so far as they are provided in standing orders;
 Rationalisation, standardisation or improvement of plant or
technique which is likely to lead to retrenchment of workmen;
 Any increases or reduction (other than casual) in the number of
persons employed or to be employed in any occupation or
process or department or shift, 1[not occasioned by
circumstances over which the employer has no control].]
How disputes are raised and settled
 Industry
Employer Workmen
Dispute
Mutual settlement Fail to settle

Conciliation officer/ Board

Fails Succeeds(Settlement)

Govt

Does not refer Refers for Adjudication

Parties free to Lock out or strike
Labour court Tribunal National Tribunal

Award
(Binding for at least one year)
STRIKES AND LOCK-OUTS
Prohibition of strikes and lock-outs
No person employed in a public utility service shall go on
strike, in breach of contract-
(a) Without giving to the employer notice of strike, as
hereinafter provided, within six weeks before striking;
(b) Within fourteen days of giving such notice; or
(c) Before the expiry of the date of strike specified in any
such notice as aforesaid; or
(d) During the pendency of any conciliation proceedings
before a conciliation officer and seven days after the
conclusion of such proceedings.
No employer carrying on any public utility service
shall lock-out any of his workman-
Without giving them notice of lock-out as hereinafter
provided, within six weeks before locking-out ; or
Within fourteen days of giving such notice; or
Before the expiry of the date of lock-out specified in
any such notice as aforesaid ; or
During the pendency of any conciliation proceedings
before a conciliation officer and seven days after the
conclusion of such proceedings.
General prohibition of strikes and lock-outs. –
No workman who is employed in any industrial establishment
shall go on strike in breach of contract and no employer of
any such workman shall declare a lock-out -
 (a) During the pendency of conciliation proceedings before a Board
and seven days after the conclusion of such proceedings;
 (b) During the pendency of proceedings before a Labour Court,
Tribunal or National Tribunal and two months, after the conclusion
of such proceedings
 (bb) During the pendency of arbitration proceedings before an
arbitrator and two months after the conclusion of such proceedings,
 (c) During any period in which a settlement or award is in operation,
in respect of any of the matters covered by the settlement or award.
LAY-OFF AND RETRENCHMENT
Lay off provisions will not applicable
(a) To industrial establishments in which less than fifty
workmen on an average per working day have been
employed in the preceding calendar month; or
(b) To industrial establishments which are of a
seasonal character or in which work is performed only
intermittently.
Right of workmen laid-off for compensation

Whenever a workman (other than a badli workman or a casual

workman) whose name is borne on the muster rolls of an industrial
establishment and who has completed not less than one year of
continuous service under an employer is laid off, whether
continuously or intermittently, he shall be paid by the employer for
all days during which he is so laid-off, except for such weekly
holidays as may intervene, compensation which shall be equal to
fifty per cent, of the total of the basic wages and dearness
allowance

Provided that if during any period of twelve months, a workman is so

laid-off for more than forty-five days, no such compensation shall be
payable
Workmen not entitled to compensation in certain cases
If he refuses to accept any alternative employment in the
same establishment from which he has been laid-off, or in
any other establishment belonging to the same employer
situate in the same town or village or situate within a
radius of five miles from the establishment to which he
belongs
If he does not present himself for work at the
establishment at the appointed time during normal
working hours at least once a day;
If such laying-off is due to a strike or slowing-down of
production on the part of workmen in another part of the
establishment
Conditions precedent to retrenchment of
workmen
No workman employed in any industry who has been in continuous service
for not less than one year under an employer shall be retrenched by that
employer until-

The workman has been given one month’s notice in writing indicating the
reasons for retrenchment and the period of notice has expired, or the
workman has been paid in lieu of such notice, wages for the period of the
notice;

The workman has been paid, at the time of retrenchment, compensation

which shall be equivalent to fifteen days’ average pay for every completed
year of continuous service

Notice in the prescribed manner

 Notice to be given of intention to close down
any undertaking
 An employer who intends to close down an undertaking shall
serve, at least sixty days before the date on which the intended
closure is to become effective, a notice, in the prescribed manner,
on the appropriate Government stating clearly the reasons for the
intended closure of the undertaking:
Provided that nothing in this section shall apply to-
 (a) An undertaking in which-
 (i) Less than fifty workmen are employed, or
 (ii) Less than fifty workmen were employed on an average per
working day in the preceding twelve months,
 (b) An undertaking set up for the construction of buildings,
bridges, roads, canals, and dams or for other construction work or
project.
Compensation to workmen in case of
closing down of undertakings
The workman has been given one month’s notice in writing
indicating the reasons for retrenchment , or the workman has been
paid in lieu of such notice, wages for the period of the notice;

The workman has been paid, at the time of retrenchment,

compensation which shall be equivalent to fifteen days’ average
pay for every completed year of continuous service

Provided that where the undertaking is closed down on account of

unavoidable circumstances beyond the control of the employer, the
compensation to be paid to the workman, shall not exceed his
average pay for three months
Procedure for retrenchment
‘First come last go’ and ‘last come first go’
Maintenance of Muster roll
The workman must be a workman as per the Act
He should be an Indian citizen
The workman should be employed in an establishment
which is an industry as per the Act
The workman should belong to a particular category of
workman
There should be no agreement contrary to the principle of
‘last come first go’
Re-employment of retrenched workmen
UNFAIR LABOUR PRACTICES
Prohibition of unfair labour practice
Penalty for committing unfair labour practices.
Punishable with imprisonment for a term, which may
extend to six months or with fine which may extend to
one thousand rupees or with both.
  PENALTIES
Penalty for illegal strikes and lock-outs-
1 month imprisonment or fine up to Rs. 50 or both
Penalty for instigation
6 months imprisonment or Rs. 1000 fine or both
Penalty forgiving financial aid to illegal strikes and lock-outs
6 months imprisonment or Rs. 1000 fine or both
Penalty for breach of settlement or award
6 months imprisonment or fine or both
Penalty for disclosing confidential information
6 months imprisonment or Rs. 1000 fine or both
Penalty for closure without notice
6 months imprisonment or Rs. 5000 fine or both
THE MINIMUM WAGES ACT, 1948

WORKERS IN STEEL
INDUSTRY
 APPLICABILITY
APPLICABILITY OF
OF THE
THEACT
ACT
Applicable to whole India
Central Government Act of 1948 and Rules made
there under will be applicable and the directions given
in the Act should be followed.
As per the Central Government Act, the State
Governments have been empowered to add
schedules or to give directions.

195
 DEFINITIONS
CHILD -Age less than 14
ADOLESCENT - Age more than 14
less than 18
ADULT - Age more than 18

WORKERS IN PAPER
INDUSTRY

196
 DEFINITIONS
EMPLOYEE
(1) Employed for Hire or Reward
(2) To do skilled or unskilled work
(3) Manual or Clerical
(4) Job Worker
(5) Any person declared by the appropriate
Government as Employee but, does not
include any member of armed forces

197
 FIXING OF MINIMUM RATE OF WAGES
BY APPROPRIATE GOVERNMENT
 MINIMUM TIME RATE
– The Minimum Wages paid for Time Work.
 MINIMUM PIECE RATE
– The Minimum Wages paid for Piece Work.
 GUARANTEED TIME RATE
– Those employed under the scheme of Piece Work but,
guaranteed wages will be paid on the basis of Time.
 OVERTIME RATE
– Time Rate of Piece Rate will apply where the Employee
has
worked overtime over and above his normal working
hours.

198
 FIXING OF MINIMUM RATE OF WAGES
BY APPROPRIATE GOVERNMENT
 MINIMUM RATE OF WAGES WILL BE FIXED FOR
– Employments provided in Schedule – I & II
– Different Types of Employments provided in Schedule – I
& II
– Adults, Adolescents, Children and Apprentices.
– Different Localities

 WAGE PERIODS FIXED UNDER MINIMUM RATE OF

WAGES
– By the Hour
– By the Day
– By the Month
– By such other larger wage period as may be prescribed

199
 FIXING OF MINIMUM RATE OF WAGES BY
APPROPRIATE GOVERNMENT
 FIXING OF MINIMUM WAGES
– The Minimum Wages has to be paid irrespective of the extent of Profit or
Financial condition of the Establishment.
– The Minimum Wages has to be paid irrespective of availability of
workmen willing to work on lower wages
– The Committees appointed will recommend the Minimum Wages to be
paid which is recommendatory. The final decision has to be made by the
appropriate Government.
– In case the Employers have not adhered to Minimum Wages then, the
Employee can move to Labour Courts before proceeding to High Courts
– Minimum Wages has been fixed for the bare subsistence of life and also to
preserve the efficiency of the worker which will provide education, medical
requirements and amenities of himself and his family.
–– The Minimum Wages will be fixed based on the Nature of Work and
Quantum of
Work.
200
 COMPONENTS OF MINIMUM WAGES
Method 1 – Basic Rate of Wages + Special
Allowance called as Cost of Living Allowance

Method 2 – Basic Rate of Wages without any Cost

of Living Allowance

Method 3 – Consolidated Pay without splitting

into Basis Rate of Wages, Cost of Living
Allowance or Cash Value of Concession.

201
 PROCEDURE FOR FIXING AND REVISING
MINIMUM WAGES
Committees and Sub-Committees appointed by the
Appropriate Authority will hold enquiries, collect
information and will submit the proposal for Revision
of Minimum Wages to the Appropriate Authority.
The Appropriate Authority after perusing the
proposal will publish its decision by notification in the
official gazette and the specific date from which the
revised wages has to be paid. The specific date
should not be less than two months from the date of
notification.
202
 COMMITTEES OR BOARD
 ADVISORY BOARD
An Advisory Board will be appointed by the Appropriate
Government for co-ordinating the work of Committees and Sub-
Committees and also the Advisory Board will provide its valuable
suggestions and recommendations to the Appropriate Government.
 CENTRAL ADVISORY BOARD
The Central Advisory Board Consisting of the persons nominated
by the Central Government representing employers and employees
in the scheduled employments who shall be equal in number. The
Central Government will nominate independent persons not less
than 1/3rd of the total number of members. The independent person
will be The Chairman of the Board.
 COMMITTEES
The Committees or Sub-Committees shall consist of the persons
nominated by the Central Government representing employers and
employees in the scheduled employments who shall be equal in
number. The Central Government will nominate independent
persons not less than 1/3rd of the total number of members. The
independent person will be The Chairman of the Committee.
203
 PAYMENT OF WAGES
 Minimum Wages payable under this Act, shall be paid in
Cash.
 Where it is customary that, Minimum Wages has to be paid
partly in cash and partly in kind or wholly in kind, in those
circumstances the Appropriate Government by issuing a
notification in the official gazette will authorize for
Payment of Wages in kind.
 The Appropriate Government will decide the value for the
concessional, essential commodities provided to the
employees by issuing a notification in the official gazette.
 The Minimum Wages has to be paid without any
deductions other than Statutory Deductions.

204
 NORMAL WORKING HOURS
For an adult worker, working in Factories the number
of working hours should not exceed 48 hours in a
week.
One day should be given as a holiday as Weekly
Holiday. The day can be any day but it should be
adhered for every week. The same should be
displayed in the notice board of the Factory.
The daily hours should not exceed more than 9 hours
with 1 hour rest interval.
Where a person has worked on a holiday either a
compensatory Holiday may be provided or An
overtime wages will be paid.

205
 EXCEPTIONS
EXCEPTIONS TO
TO NORMAL
NORMAL WORKING
WORKING HOURS
HOURS

The Normal Working Hours need not be adhered in

the following cases:
(1) Where the persons were employed to meet
emergency or urgent work.
(2) Whose Employment is dependent on Natural
Factors
(3) Employees those who have not completed their
duty in time for technical reasons.
(4) Where the nature of duties has to be necessarily
carried out beyond normal working hours.

206
 OVERTIME WAGES

Where a person has worked more than the normal

Working hours for any day, the excess hours worked will
be treated as Overtime

Where the Fixed Normal Working Hours for any day is in

excess of 8 Hours we have to go by the method of weekly
worked hours. If the person has worked for more than 48
hours in a week then, the excess hours worked will be
treated as Overtime.

207
 WAGES FOR A PERSON WHO HAS WORKED
LESS THAN NORMAL WORKING HOURS

Where an Employee worked on any day less than the

Normal Working Hours due to the fact that, Employer
could not provide the activities of the job then, the
Employee is entitled to receive full salary.
Where an Employee worked on any day less than the
Normal Working Hours due to the fact that, Employee has
not worked due to his unwillingness then, the employee is
not entitled to receive full
salary.

208
 WAGES FOR TWO OR MORE CLASSES
OF WORK
Where an Employee does two types of works which
has different Minimum Wages then, the Employer
shall pay to such Employee based on working hours
allocated to each type of job. Where working hours
cannot be allocated on a minute basis a reasonable
method can be adopted.

209
 RECORDS TO BE MAINTAINED
 Employer should maintain a Register of Employees containing
the details such as the name, address, father’s name, age, sex,
the work performed, the wages paid to them.
 The other Registers to be maintained are:
(1) Register of Fines.
(2) Register of Deductions for Damage / Loss caused to the
employer, by the neglect / default of the employed persons.
(3) Overtime Register for Workers
(4) Muster-Roll
 The Registers shall be preserved for a period of 3 years after
the date of last entry made therein.

210
THE PAYMENT OF WAGES
ACT, 1936
OBJECT OF THE ACT
 To regulate the payment of wages to certain classes of
employed persons. Two fold:-

 First the date of payment of wages and

 Secondly the deductions from wages whether as fine or

otherwise.
APPLICABILITY OF THE ACT
 Persons employed in:-
 Any factory (a saw mill, ginning factory, godowns, yards
etc as defined in Factories Act, 1948).
 Tramway service or motor transport service engaged in
carrying passengers or good 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.

WAGE
Means all remuneration, whether by way of salaries, allowances
or otherwise, expressed in terms of money or capable of being
so expressed which would, if the terms of employment,
express or implied were fulfilled, be payable to a person
employed in respect of his employment or of work done in
such employment.
Wage includes :
 any remuneration Payable under any award or settlement
between the parties or order of a Court;
 Over time work or holiday or any leave period;
 Any additional remuneration under the terms of employment.
Wage does not includes any bonus, pension fund or provident
fund, travelling allowance and any gratuity.
WAGES TO BE PAID IN CURRENT COINS OR
CURRENCY NOTES

a. All wages shall be paid in current coins or currency notes or

in both.
b. After obtaining the authorization, either by Cheque or by
crediting the wages in employees banks Account {Section
6}
TIME OF PAYMENT OF WAGES
 The wages of every person employed is paid. When less
than 1000 persons are employed shall be paid before the
expiry of the 7th day of the following month. When more
than 1000 workers, before the expiry of the 10th day of
the following month. (Section 5).
DEDUCTION MADE FROM WAGES

1. DEDUCTIONS FOR FINES

2. DEDUCTIONS FOR ABSENCE FROM DUTY
3. DEDUCTIONS FOR DAMAGE OR LOSS
4. DEDUCTIONS FOR SERVICES RENDERED
5. DEDUCTIONS FOR RECOVERY OF ADVANCES
6. DEDUCTIONS FOR RECOVERY OF LOANS
7. DEDUCTIONS FOR PAYMENTS TO CO-OPERATIVE SOCIETIES
AND INSURANCE SCHEMES
AUTHORITIES UNDER THIS ACT
 INSPECTORS.
 AUTHORITY TO HEAR CLAIMS.
Any commissioner for Workmen’s Compensation; or
Any Regional Labour Commissioner.
Any Assistant Labour Commissioner.
Presiding Officer of any Labour Court or Industrial Tribunal.
MAINTENANCE OF REGISTERS AND RECORDS

 Particulars of persons employed by him

 The work performed by the person employed
 The wages paid to him
 The deductions made from his wages
 The receipts given by him
PENALITIES
 Makes contravention of Sec’s.5, 7, 9, 11 and 13 of the Act,

by any person responsible for the payment of wages to an

employed person, punishable with fine which shall not be
less than one thousand five hundred rupees but which may
extend to seven thousand five hundred rupees.
Equal Remuneration Act 1976
Introduction
• The State Policy article 39 of the Constitution envisages that
the State shall direct its policy, among other things, towards
securing that there is equal pay for equal work for both men
and women.
• Article 39(a) states that the citizens, men and women, equally,
have the right to an adequate means of livelihood.
Cont..
• Article 39(d) “that there is equal pay for equal work for
both men and women”.
• Article 16(2) makes a specific mention that “no citizen
shall on ground only of ….sex …be ineligible for or
discrimination against in respect of any employment or
office under state.”
Definition
“Same work or work of a similar nature” means work in
respect of which the skill, effort and responsibility required
are the same, when performed under similar working
conditions, by a man or a woman and the differences, if any,
between the skill, effort and responsibility required of a man
and those required of a woman are not of practical
importance in relation to the terms and conditions of
employment
Duty of employer to pay equal remuneration for

“Same work or work of similar nature”

 No employer shall pay to any worker, employed by
him in an establishment or employment,
remuneration, whether payable in cash or in kind, at
rates less favourable than those at which
remuneration is paid by him to the workers of the
opposite sex in such establishment or employment
for performing the same work or work of a similar
nature.
Prohibition of discrimination in recruitment or
other condition of service(sec 5)
• This Act, no employer shall while making recruitment for the
same work or work of a similar nature, or in any condition of
service subsequent to recruitment such as promotions, training
or transfer, make any discrimination against women except
where the employment of women in such work is prohibited
or restricted by or under any law for the time being in force:
•  Provided that the provisions of this section shall not affect
any priority or reservation. for Scheduled Castes or Scheduled
Tribes, ex-servicemen, retrenched employees or any other
class or category of persons in the matter of recruitment to the
posts in an establishment or employment.
Advisory Committee
• Every Advisory Committee shall consist of not less than
ten persons, to be nominated by the appropriate
Government, of which one-half shall be women.
• The Advisory Committee shall regulate its own procedure.
• The appropriate Government may, after considering the
advice tendered to it by the Advisory Committee and after
giving to the persons concerned in the establishment or
employment an opportunity to make representations, issue
such directions in respect of employment or women
workers, as the appropriate Government may think fit.
 
Authorities for hearing and deciding claims
and complaints
 The appropriate Government may, by notification, appoint
such officers, not below the rank of a Labour Officer, as it
thinks fit to be the authorities for the purpose of hearing
and deciding
Penalties
 (1) If after the commencement of this Act, any employer,
being required by or under this act, so to do—
(a) omits or fails to maintain any register or other document in
relation to workers employed by him, or
(b) omits or fails to produce any register, muster-roll or other
document relating to the employment of workers, or
(c) omits or refuses to gives any evidence or prevents his agent,
servant, or any other person in charge of the establishment, or
any worker, from giving evidence, or
(d) omits or refuses to give any information,
 he shall be punishable with simple imprisonment for a term
which may extend to one month or with fine which may extend
to ten thousand rupees or with both.
 If, after the commencement of this Act, any employer—
(a) makes any recruitment in contravention of the provisions of
his Act, or
(b) makes any payment or remuneration at unequal rates to men
and women worker, 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 this Act, or
(d) omits or fails to carry out any direction made by the
appropriate Government under sub-section (5) of Section 6.
 he shall be punishable with fine which shall not be less than ten
thousand rupees but which may extend to twenty thousand
rupees or with imprisonment for a term which shall be not less
than three months but which may extend to one year or with
both for the first offence, and with imprisonment which may
extend to two years for the second and subsequent offences.
 Employee’s Compensation Act, 1923

232
 Objectives of the law…
One of the oldest legislation of social security in India.
a workman who dies or suffers disablement (partial or
total) due to accident is entitled to get compensation.

233
 Coverage – even if one worker is
employed…

The Act is applicable all factories etc. (where ESI Act

is not applicable), however, this Act is applicable even
when only one worker is employed and it is not a
factory‘ under Factories Act.

234
 Workmen under the Act:
Section : 2(1)(n)
Workman‘ means * railway servant * crew of ship *
Crew of aircraft * Driver, cleaner, helper or mechanic
of motor vehicle * Person recruited abroad *
Employed in capacity specified in Schedule II
The central govt. or state govt. can add new class of
workmen in schedule II after giving at least 3 months
notice.

235
 Schedule II
It includes manufacturing process, explosives,
mine, ship, loading/unloading, construction,
electricity generation and distribution, drivers,
horticulture, circus etc.
Cultivation of land, fishing, rearing of live stock is
covered if more than 25 persons are employed.
Persons employed outside are also covered.
However, persons employed in clerical capacity
are excluded.

236
 Coverage : all the workers in factories
etc. are covered…
Every employee, including those employed through
contractor, but excluding casual employees who is
engaged for purpose of employer‘s business is eligible.
The Act does not cover employees employed in clerical
capacity. However, 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 course of
employment, and such accident causes either death or
disablement.

237
 Employer’s liability to pay compensation
An employer’s liability to pay compensation is depend upon
the following four conditions
Personal injury must have been caused to a workman
Such injury must have been caused by an accident
The accident must have arisen out of and in the course of
employment
The injury must have resulted either in death of the
workman or in his total or partial disablement for a period
exceeding three days

238
 Employer is not liable to pay compensation
 In case of Injury which does not result in total or partial
disablement of workman for a period exceeding 3 days

 Injury caused by an accident directly attributable to

workman under influence of drinks or drugs willful
disobedience of express orders for safety willful removal
of safety guard or device. [Even if such case, if the
workman dies or suffers permanent total disablement,
the employer will be liable].

239
 Who are dependent persons?
 Sec. 2(1) (d) :
First category
 widow, minor legitimate or adopted son, an unmarried
legitimate or adopted daughter, or a widowed mother
Second category : a son and a daughter, they have to fulfill
the following conditions, namely
 They must be wholly dependant on the earning of the
workman at the time of his death
 They must be infirm and
 They must have attained the age of 18 years

240
 Continued…
Third category: if wholly / partly dependent :
a)Widower
b) a parent other than widowed mother
c) i)Minor illegitimate son,
ii) an unmarried illegitimate daughter,
iii) a daughter legitimate or illegitimate or adopted if married
and a minor or if widowed and a minor
d) A minor brother or an un married sister or a widowed sister if a
minor
e) Widowed daughter in law
f) A minor child of a predeceased son
g)A minor child of a predeceased daughter where no parent of the
child is alive
h)A paternal grandparent, if no parent of the workman is alive
241
 What is partial disablement?
Where disablement reduces the earning capacity of
the workman in the employment in which he was
working at the time of accident - it is called
temporary partial disablement.
Where disablement reduces the earning capacity for
all times in every employment in which he was
capable earlier – it is called permanent partial
disablement.
Schedule I gives list of diseases which causes
permanent partial disablement.

242
 What is total disablement?
 which incapacitates a workman for all work which he
was able to perform at the time of accident (mentioned
in part I of schedule I or combination of injuries
mentioned in Part II of schedule I, where the aggregate
of such injuries is 100% or more)

243
 Employment disease
Employer is liable if a workman contracts any
specified occupational disease, while he is in service of
employer for at least 6 months. [section 3(2)].

244
 Quantum of compensation
 In case of death resulting from injury, minimum
compensation is Rs. 1,20,000. Maximum compensation is
an amount equal to 50% of monthly wages of deceased
workman multiplied by factor depending on age (More
the age, lower the compensation).

245
 Quantum of compensation in case of
disablement…
In case of permanent total disablement, minimum
compensation is Rs. 1,40,000. Maximum
compensation is an amount equal to 60% of
monthly wages of deceased workman multiplied
by factor depending on age (More the age, lower
the compensation).

246
 Compensation – protected…
The compensation paid under the Act is protected, i.e.
it cannot be attached or assigned. [section 9].

247
 Compensation – liability of principal employer –
even if employed through contractor…

Principal Employer is liable to pay the amount of

compensation for the injury 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 12].

248
 Payment of compensation through
commissioner…
A Commissioner for Workmen‘s Compensation is
appointed by Government. The compensation must
be paid only through the Commissioner in case of
death or total disablement. Any lump sum payment
to workman under the Act must be made only
through Commissioner. Direct payment to
workman or his dependents is not recognised at all
as compensation. However, in case of death, if
employer has paid some compensation to
dependent, that will be refunded to employer.
[section 8(1)].

249
 Expenditure by employer is not
compensation…

Expenditure made by employer for medical treatment

of workman is not considered for purposes of the
compensation.

250