Prepared by,

T. Siva Kumar

Compiled from:
•Elements of Mercantile Law by N.D.Kapoor (2007),
•http://labour.nic.in/act/welcome.html
•Various postings in www.citehr.com
Law
What is law?
 Law includes all the rules & principles which regulate our relations
with other individuals & with the state.

Object of law?
 To establish socio-economic justice and remove the existing
imbalance in the socio-economic structure.

Need for the knowledge of law?

 Ignorance of law is no excuse.
Mercantile/Business/Commerci
al Law
What is it mean?
 It deals with contractual situations and the right &
obligations arising out of mercantile transactions
between mercantile persons.

Sources of Business Law?

 English Mercantile law
 Statute Law
 Judicial decisions or the system of precedents
 Customs & usages
The Indian Contract Act,
1872
Object?
 Branch of law which determines the circumstances
in which promises made by the parties to a
contract shall be legally binding on them.

Contract = Agreement + Enforceablility by law

(Legal obligation not a Social obligation)
Agreement = Offer + Acceptance (In genuine
consent)
Essentials of valid contract
1. Offer and acceptance - 2 parties – one party making the offer,
other party accepting the offer, terms of offer must be definite
and the acceptance must also be according to the mode
prescribed and must be communicated to the offeror.

2. Intention to create legal relationship

3. Lawful consideration - something in return

4. Capacity of parties - competent, major, sound mind, not

disqualified from contracting by any law
Essentials of valid contract
5. Free and genuine consent – same mind on all the material terms
of the contract

6. Lawful object – legal, moral, not opposed to public policy

7. Agreement not declared is void

8. Certainty and possibility of performance – not vague or indefinite

9. Legal formalities – contract should be in writing

Workmen’s Compensation
Act, 1923
 First step towards social security of workmen
 The theory behind this act is that “the cost of product
should bear the blood of the workmen”

 Object?
 To provide for the payment of compensation by certain
classes of employers to their workmen for injury by
accident.

 Note: Workmen who are covered under ESI Act, 1948 are not entitled
to compensation under this Act as disablement and dependants’
benefit is available to workmen under the former act.
Disablement?
Disablement means loss of capacity to work or to move
It may result in loss or reduction of his/her earning
capacity.
Disablement may be
 Partial
 Total

Further it may be
 Permanent
 Temporary
Employer’s liability for
compensation
1. Personal injury
2. Occupational Disease

Compensation for Calculation Minimum

amount
Death 50% of monthly wages * relevant age factor Rs. 80,000
Eg: Age 16 factor = 228.54, Age 65 factor =
99.37
Permanent total 60% of monthly wages * relevant age factor Rs. 90,000
disablement

Permanent partial % loss of earning capacity * relevant age factor

disablement

Temporary disablement 25% of monthly wages shall be payable every

(total & partial) half month till the disablement lasts

Note: Where the monthly wages of workman exceed Rs. 4000, his monthly
wages shall be deemed to be Rs.4000 only.
Trade Unions Act, 1926
Trade Union – “An association of workers in a particular craft
or industry” and now it symbolize
 Workers’ right to organize
 Their right to press their demands collectively and to go on strike if
their demands are not accepted

Object?
 To regulate the conditions governing the registration of trade
unions
 Obligations imposed upon a registered trade union and
 Rights & liabilities of registered trade unions
Indian Partnership Act, 1932
 A contract of uberrimae fidei- “utmost good faith” i.e partnership
contract must run with mutual trust and confidence
 Min: 2 competent persons
 Max: on banking business should not exceed 10, any other business
not exceeding 20
 Profit must be distributed in “agreed ratio”
 Documents which contains the agreement is called “Partnership
Deed” and it contains
 nature of business,
 principal place of business,
 name and address of the partners,
 management,
 accounts
 Deed must be duly stamped as required by the Indian Stamp Act, 1889
 Payment of Wages Act, 1936
Object?
 To avoid with holding wages, delays in paying wages & making
unreasonable deductions out of wages.

 This Act is applicable to persons whose wages does not exceed Rs. 6500 per month (2005)
or such other higher sum which, on the basis of figures of the Consumer Expenditure
Survey published by the National Sample Survey Organisation, the Central Government
may, after every five years, by notification in the Official Gazette.
 Wage period – shall not exceed 1 month
 Time of payment of wages
 <1000 persons – before the expiry of the 7th day of the following wage period
 >1000 persons - before the expiry of the 10th day of the following wage period
 Termination of employment – before 2nd working day from the terminated day
 Wages to be paid on a working day
Deductions from wages
 Medium of payment of wages – current coin or currency notes or
both, after obtaining written authorization of the employed
person, payment can be made either by cheque or by crediting
the wages in bank account

 Deductions from wages

 Fines (shall not exceed 3% of wages payable to him in that wage
period)
 Absence of duty
 Services like house accommodation, amenities etc
 Recovery of advances
 Recovery of loans
 Payments to co-operative societies & insurance schemes
 Other deductions such as income tax, PM’s Relief fund etc
Maintenance of registers &
records
Every employer shall maintain registers & records
giving the following particulars of the persons
employed by him:
 the work performed by them
 the wages paid to them
 the deductions made from their wages
 the receipts given by them
The Industrial Employment
(Standing Orders) Act, 1946

Object?
 To require employers in industrial establishments
to define with sufficient precision the conditions of
employment under them & to make the said
conditions known to workmen employed by them.
Matters to be provided in Standing
Orders
 Classification of workmen
 Manner of intimating to workmen about periods & hours of work, holidays, pay
days & wage rates
 Shift working
 Attendance & late coming
 Conditions of procedure in applying for, and the authority which may grant leave &
holidays
 Requirement to enter premises by certain gates, & liability to search
 Closing & reopening of sections in Industrial Establishment, temporary stoppages
of work & the rights & liabilities of workmen & employer arising therefrom.
 Termination of employment & respective notice
 Suspension or dismissal for misconduct & related actions
 Redress mechanism against unfair treatment
Procedure for Certification of Standing
orders
The Industrial Disputes Act,
1947
 Object?
 To secure industrial peace
 By preventing & settling industrial disputes between the
employers & workmen
 By securing & preserving amity & good relations between the
employers & workmen through an internal Works Committee
 By promoting good relations through an external machinery
of conciliation, Courts of Inquiry, Labor Courts, Industrial
Tribunals & National Tribunals
 To improve the condition of workmen in industry
 By redressal of grievances of workmen through a statutory
machinery
 By improving job security
What is Industrial dispute?
It means any dispute or difference between
 employers & employers
 employers & workmen
 workmen & workmen, which is connected with
a) The employment or non-employment
b) The terms of employment
c) The conditions of labor of any person

It includes both individual & collective disputes

Important Terms
 Lay off – Failure/Refusal/Inability of an employer to give
employment to a workman due to
 Shortage of coal, power or raw material.
 Accumulation of stocks.
 Breakdown of machinery.
 Natural calamity.
 Lock out – Temporary closing of a place of employment or
suspension of work or refusal by employer (Employer’s weapon)
 Closure – Closing the business due to actual loss or apprehended
loss
 Retrenchment – Employees terminated on account of surplus labor
 Strike – Cessation of work by workmen
 Unfair labor practices
Conciliation Machinery
Work committees
Conciliation Officer
Board of Conciliation
Courts of Inquiry

Adjudication Machinery
Labor Courts
Industrial Tribunal
National Tribunal
Factories Act, 1948
Factory means any premises where in a
manufacturing process
10 or more persons are engaged if power is used
or
20 or more persons are engaged if power is not
used

Object?
To protect children & to provide for some
health & safety measures.
State Government / Chief
Inspector
1. Site Approval for a factory before it is constructed
2. Submission of plans of Factories
3. Registration & Licensing of Factories
4. Appeal to State/Central Govt within 30 days if permission
is refused by Chief Inspector/State Govt respectively
5. Notice by the occupier
 Name & address of the factory, owner & occupier
 Address for communication
 Nature of manufacturing process
 Total rated horsepower
 Name of the manager
 No. of workers likely to be employed etc
Health of workers
 Cleanliness
 Disposal of wastes & effluents
 Ventilation & Temperature
 Dust & fume
 Artificial humidification
 Overcrowding
 Lighting
 Drinking water
 Latrines & Urinals
 Spittoons
Safety of workers
 Fencing of machinery
 Work on near machinery in motion
 Employment of young persons on dangerous machine
 Striking gear & devices for cutting off power
 Self acting machines
 Casting of new machinery
 Prohibition of employment of women & children near cotton
opener
 Hoists & Lifts
 Lifting machine, chains, ropes & lifting tackles
 Revolving machinery
Safety of workers
 Pressure plant
 Floors, stairs and means of access
 Pits, sumps, openings in floors etc
 Excessive weights
 Protection of eyes
 Precautions against dangerous fumes
 Precautions regarding the use of portable electric light
 Precautions against explosive or inflammable dust, gas, fire etc.
 Power to require specifications of defective parts or tests of stability
 Safety of building & machinery
 Maintenance of building
 Safety officers
Welfare of workers
 Washing facilities
 Facilities for storing & drying clothes
 Facilities for sitting
 First aid appliances
 Canteens
 Shelter, rest rooms & lunch rooms
 Creches (>30 women workers)
 Welfare officers (>500 workers)
Working hours
 Not more than 48hours per week or 9 hours per day
 Intervals of rest – fixed by factory
 Women employees – 6AM to 7PM

 Ordinary rate of wages = Basic wage + Allowances

 Extra wages for overtime – wages at twice the ordinary rate

 Annual leave with wages

 1 day for every 20/15 days of work performed in case of adult/child
 Application for leave – atleast 15 days before for private, 30 days for public utility
service
 Maternity leave not exceeding 12 weeks
Employees’ State Insurance
Act, 1948
 Object?
 The Act is a piece of social security legislation conceived
as a means of extinction of the evils of the society,
namely, want, disease, dirt, ignorance and indigence

 Applicability of the Act for employees is Rs. 10000/- per month

(Gross Salary).

 Benefits?
 Sickness benefit
 Maternity benefit
 Disablement benefit
 Dependants’ benefit
 Medical benefit
 Funeral expenses
Employee?
 Any person employed for wages in or in connection with the
work of a factory or establishment
 Directly employed by the principal employer

 Employed through an intermediate employer

 Contract employees

 Apprentice, not being an apprentice engaged under the

Apprentices Act, 1961 or under Standing Orders

Wages?
 All remuneration paid in cash to an employee except
employer contribution to pension & provident funds, travelling
allowance, special expenses paid and gratuity payable on
discharge
Contribution?
 Contribution – Sum of money payable to ESI Corporation by the
principal employer & employee
 Contribution period – Must not exceed 6 consecutive months

Contribution Rate of Contribution

by
Employer A sum equal to 4.75% of the total wage bill of all employees
rounded to the next higher rupee + 1.16% Admin charges
Employee A sum equal to 1.75% of his/her wages rounded to next
higher rupee
 Employee Contribution is exemption for employees whose wages
are < Rs.50 per day
 Default in payment of contribution – to pay simple interest at 12%
or more per annum, till the date of its actual payment
 All disputes arising out of this are resolved by Employees’ Insurance
Court
Minimum Wages Act, 1948
Object?
 To secure the welfare of the workers in a competitive market by
fixing the minimum rates of wages in certain employments

Scheduled employment – Workers in mines, plantation,

transport, mills etc

Appropriate State Government shall fix

 minimum rate of wages for time work
 minimum rate of wages for piece work
 guaranteed time rate
 overtime rate
Fixation & Revision of wages
Fixation & revision of minimum wages are done by
appropriate Government through either of the 2
methods
1. Appointment of committees & sub-committees as
it considers necessary to hold inquiries
2. Publication of proposals in the Official Gazette

Appropriate Government shall consult with

Advisory Boards before fixing/revising minimum
wages
Employees’ Provident Fund &
Miscellaneous Provisions Act,
1952
 Object?
 It is a social security measure meant to induce employees to
save a portion from their present earnings for a rainy day

 Authorized Officer?
 Central PF Commissioner
 Additional Central PF Commissioner
 Deputy PF Commissioner
 Regional PF Commissioner
 Contribution is made to
 Employees’ Provident Fund Scheme
 Employees’ Pension Scheme & Fund
 Employees’ Deposit Linked Insurance Scheme (EDLI) & Fund
Contribution
 ESI is covered to employees whose wages are upto
Rs.10,000 per month
 Basic Salary = Basic Wages + Dearness Allowance including
cash value of any food concession + Retaining Allowance

Employee Contribution Employer’s Contribution

12% of Basic Salary 12% of Basic Salary + 1.61%

Pension Fund: 8.33% of Basic Salary

or Rs.541 whichever is lesser

Provident Fund: 3.67% of Basic Salary

Administrative 1.10%of Basic

charges Salary
EDLI Fund 0.50% of Basic
Salary
Administrative 0.01%of Basic
Company Act, 1956
Company - “ an association of many persons who
contribute money or money’s worth to a common
stock and employ it in some common trade or
business(for common purpose) and who share the
profit or loss arising there from”
Characteristics of the
company
1. Separate legal entity
2. Limited liability
3. –limited by shares
4. –limited by guarantee
5. Perpetual succession
6. Common seal
7. Transferability of shares
8. Separate property
9. Capacity to sue
 Company Vs Partnership

Company Partnership

Regulated under Companies Partnership Act 1932

Act 1956
Exits after registration under Registration not mandatory
Co.Act 1956
Managed by Directors, Every partner should take
Board of Directors part in the management
Property and rights is Transferable to any or all
nontransferable to partners
shareholders
 Company Vs Partnership
Shares are transferable when Shares cannot be transferred
the transferee becomes the without the concern of all
member partners
Shareholders is not the agent… Each partner is an agent…has
has no power power
Members Public Pvt Min-2
Min 7 2 Max- banking 10
Max No limit 50 others 20

Bound by law and audited No statutory provisions

annually
Only it can be dissolved Dissolved by death/ insolvency
(Wound by provisions of of partner or wound if it is for
companies Act 1956) fixed period.
 Public Co. Vs Private Co.
Public Co. Private Co.
Min members- 7 Min- 2
Max members - no limit Max - 50

File with registrar to act as No restriction

Director

Invites public to subscribe for No public invitation

shares / issues

Quorum members –5 2

Managerial remuneration cannot No restrictions

exceed 11% of NP

No privileges Special priviliges

Documents to be filed with Registrar for
getting Certificate of Incorporation
• Memorandum of Association signed by the subscribers
• Fundamental document
• Lays down the area of operation
• Regulates the external affairs of the co in relation to outsiders
• Articles of Association if any(public limited co limited by
shares need not have its own AOA
• Rules and regulations and bye-laws for the internal management of the
affairs of a company.
• Agreement between the Co and the individual for the
appointment of whole time Director or Manager
• List of directors agreed to act as director with their written
consent
• Declaration relating to companies act and formalities related
to registration
Employment Exchanges (Compulsory
Notification of Vacancies) Act, 1959
Object?
 To provide for the compulsory notification of
vacancies to employment exchanges.

 Act is applicable to vacancies in posts of a technical and scientific nature

carrying a basic pay ≥ Rs.210 per month occurring in establishments or to be
circulated to the Employment Exchanges outside the State or Union Territory

 Act is not applicable to any employment in

 agriculture, horticulture etc
 domestic service,
 the total duration of which is less than three months,
 to do unskilled office work,
 connected with the staff of Parliament.
 Form and manner of notification of vacancies
(1) Name and address of the employer ;
(2) Telephone number of the employer, if any ;
(3) Nature of vacancy :-
(a) Type of workers required (Designation) ;
(b) Description of duties ;
(c) Qualifications required - (i) Essential, (ii) Desirable
(d) Age-limits if any ;
(e) Whether women are eligible ?
(4) Number of vacancies - (a) Regular, (b) Temporary
(5) Pay and allowances
(6) Place of work (name of town/village and district in which it is situated).
(7) Probable date by which the vacancy will be filled
(8) Particulars regarding interview/test of applicant - (a) Date , Time & Place of
interview/test (b) Designation and address of the person to whom applicants should report
(9) Whether there is any obligation or arrangement for giving preference to
any category of persons such as Scheduled Castes, Scheduled Tribes, ex-
Servicemen and physically handicapped persons in filling up the
vacancies, and if so, the number of vacancies to be filled by such
categories of persons.
(10) Any other relevant information
 Time limit for notification of vacancies & selection
 Atleast 15 days before the applicants will be interviewed or
tested.
 Employer to furnish the result of selection within 15 days.

 Submission of Returns
 Quarterly in Form ER-I - Within 30 days by 30th June, 31st March, 30th
September & 31st December
 BIENNIAL Return Form ER-II – Within 30 days of the due date as
notified in the Official Gazette
Apprentices Act, 1961
“An apprentice is bound to obey his master in all his lawful
commands, take care of his property and promote his
interest, endeavor to learn his trade or business, &
perform all the conditions of his contract not contrary to
law. He must not leave his master’s service during the
term of his apprenticeship”

Object?
 To provide for the regulation & control of training of
apprentices
Types
 Technician (Vocational) Apprentice
 Undergo training for 2 years inorder to hold a certificate in
vocational course after completing secondary stage of school
education, recognized by All India Council of Technical Education
 Trade Apprentice
Undergo apprenticeship training in any trade or business
Qualifications for being an


apprentice
 14 years of age or above
 satisfies the standard of education & physical fitness as prescribed
for apprenticeship training
Employer’s responsibilities
 Total number of hours/week = 42 to 48 (6AM to 10PM)
 Employer shall look after
 Offer & Acceptance of employment
 Practical & basic training of apprentices & related
instructions
 Health, Safety & Welfare of apprentices
 Leave / Overtime hours
 Payment of stipend
 Compensating for injury during training
 Holding test & granting certificate
 Records, settlement of disputes
Maternity Benefits Act, 1961
 Object?
 To regulate the employment of women in certain establishments for
certain periods before & after child birth & to provide for maternity
benefit & other certain benefits

 Wage?
 Remuneration in cash + Cash Allowances including DA & HRA + Incentives +
Money value of food grains
 Maternity benefit is a payment to a women (should have worked atleast
80 days in the 12 months immediately proceeding the date of her
expected delivery ) at a rate of the average daily wage for the period of
her actual absence
 Maternity benefit is given for a maximum period of 12 weeks, of which
not more than 6 weeks shall precede the date of her expected delivery
Liabilities of Employer
 Pregnant women are prohibited to work in establishments
during a period of 6 weeks immediately following the day of
her delivery or her miscarriage

 Employer is liable to pay maternity benefit to her nominee or

that woman even in case of death of that woman/child
respectively

 2 nursing breaks per day shall be allowed until the child

attains the age of 15 months

 6 weeks leave shall be allowed for miscarriage on production

of the prescribed proof
Payment of Bonus Act, 1965
 Bonus – “gratuity to workmen beyond their wages”

 Object?
 To maintain peace & harmony between labor & capital by
allowing the employees, in recognition of their right, to share
in the prosperity of the establishment reflected by the
contributions made by capital, management & labor

 A minimum bonus of 8.33% of the (Salary + DA) or Rs. 100

whichever is higher - paid to all employees whose salary is up to
Rs.3500 per month & worked for not less than 30 days for that
year
 Bonus is no longer linked with production & profitability and so it
is a statutory liability for an employer on completion of 5 years
after 1st Accounting year even if there is no profit
 60 or 67% of available surplus is allocated for bonus
Contract Labour (Regulation &
Abolition) Act, 1970
 Object?
 To regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain
circumstances and for matters connected therewith.

 Liability of Principal Employer

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

 Every contractor shall maintain Muster Roll, Register of wages, Register of

Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage
slip & display the abstract 0f rules & Act in English & regional language.
Registration of Establishment
 Principal employer employing 20 or more workers through the contractor or
the contractor(s) on deposit of required fee in Form 1 as given below. If the
number of workmen proposed to be employed on contract on any days-

(a) is 20 Rs.60
(b) exceed 20 but does not exceed 50 Rs.150
(c) exceed 50 but does not exceed 100 Rs.300
Prohibition of Employment of Contract Labour
(d) exceed 100 but does not exceed Rs.600
 Only by the 200
appropriate Government through issue of notification after
consultation(e)
with the Board
exceed 200 (and not Courts)
but does can orderRs.1200
not exceed the prohibition of
employment400 of contract labour.
(f) exceeds 400 Rs.1500
Licensing of Contractor
 Engaging 20 or more than 20 workers and on deposit of
required fee in Form IV as given below.
 If the number of workmen employed by the contractor on
any day-
(a) is 20 Rs.15.00
(b) exceed 20 but does not exceed 50 Rs.37.50
(c) exceed 50 but does not exceed 100 Rs.75.00

(d) exceed 100 but does not exceed Rs.150

200
(e) exceed 200 but does not exceed Rs.300.00
400
(f) exceed 400 Rs.375.00
 It is valid for specified period.
Payment of Gratuity Act,
1972
 Principle?
 By faithful service over a long period, the employee is entitled to claim a
certain amount as a retirement benefit
 Gratuity is paid out at the time of superannuation (if you retire at the
age of 58), when you retire (at any other age) or resignation, and in the
event of your death or being rendered disable because of an accident or
illness. You need to have at least 5 full years of service with an
employer to qualify for gratuity.
 Rate of Gratuity
Application for gratuity
 An employee or his/her nominee shall write to the employer
within 30 days from the date the gratuity become payable
or shall be applied before 30 days if date of superannuation
is known

 If it is not paid by the employer within 30 days, then he shall

pay simple interest as prescribed by Central Government

 The grievances are redressed by controlling authority and

the collector shall recover the gratuity amount + compound
interest from the employer
Equal Remuneration Act,
1976
 Object?
 To provide for the payment of equal remuneration to
men and women workers and for the prevention of
discrimination, on the ground of sex, against women in
the matter of employment and for matters connected
therewith or incidental thereto

 Duties of employer
 To pay equal remuneration to men and women workers for same work
or work of a similar nature
 No discrimination to be made while recruiting [or promoting/training
/transferring] men and women workers except where the employment
of women in such work is prohibited or restricted by any law and it shall
not affect any reservations for SC, ST, Ex-Servicemen etc.

 The appropriate Government shall constitute one or more Advisory

Committees to increase employment opportunities for women
Penalties
If an employer –

 Omits or fails to produce any register, muster-roll, any information or other

document relating to the employment of workers - he shall be punishable
with simple imprisonment for a term which may extend to 1 month or with
fine which may extend to Rs.10,000 or with both

 Makes any recruitment or discrimination in wages in contravention of the

provisions of this Act - he shall be punishable with fine of Rs.10,000 to
Rs.20,000 or with imprisonment for a term of 3 months to 1 year or with
both for the first offence, and with imprisonment which may extend to 2
years for the second and subsequent offences

 If any person being required so to do, omits or refuses to produce to an

Inspector any register or other document or to give any information, he
shall be punishable with fine, which may extend to Rs.5000
Professional Tax Act, 1976
Object?
 To provide for the levy & collection of tax on
professionals , trade callings & employment in the state.

 The set of professional tax slabs in India are different for all the 28 states in India
and some of the states have formulated different professional tax slabs for men,
women, and the senior citizens of the respective states.
 Eg: Tamil Nadu's Tax Slabs: Half yearly basis

Half yearly Income Monthly Professional Tax

Less than Rs.21000 Nil
Between Rs.21001-Rs.30000 Rs.75
Between Rs.30001-Rs.45000 Rs.188

 Date of payment Between Rs.45001- Rs.60000 Rs.390

Between Rs.60001- Rs.75000 Rs.585
 15th of succeeding month + additional 5 days grace
Beyond Rs.75001 Rs.810
Inter-state Migrant Workmen
(Regulation of Employment &
Conditions of Service ) Act, 1979

Object?
 To regulate the employment of inter-State migrant
workmen and to provide for their conditions of service
and for matters connected therewith.

 Inter-State migrant workman

 Any person who is recruited by or through a contractor in one State under an
agreement or other arrangement for employment in an establishment in
another State, whether with or without the knowledge of the principal
employer in relation to such establishment;
Duties of Contractors
 To furnish prescribed particulars to the specified authority in State from
which an inter-State migrant workman is recruited and in the State in which
such workman is employed, within 15 days from the date of recruitment
and also to intimate if there are any changes in employment

 To issue to every inter-State migrant workman, a pass–book affixed with a

passport size photograph of the workman and indicating in Hindi/Regional
and English languages -
 (i) the name and place of the establishment wherein the workman is employed;
 (ii) the period of employment;
 (iii) the proposed rates and modes of payment of wages;
 (iv) the displacement allowance payable;
 (v) the return fare payable to the workman on the expiry of the period of his
employment and in such contingencies as may be prescribed and in such other
contingencies as may be specified in the contract of employment;
 (vi) deductions made; and others.
Wages, Welfare & other
facilities
 The wage rates, holidays, hours of work and other conditions of service of an inter-
State migrant workman shall remain the same as any other workman in that
establishment and Minimum Wages Act, 1948 is also applicable to them

 Non-refundable displacement allowance = 50% of the monthly wages payable to

him or Rs.75 whichever is higher

 Journey allowance ≥ the fare from the place of residence of the inter-State migrant
workman in his State to the place of work in the other State

 Other facilities such as suitable conditions of work, residential accommodation,

prescribed medical facilities (free of charge), protective clothing are also applicable

 To ensure regular payment of wages, equal pay for equal work irrespective of sex, in
case of fatal accident or serious bodily injury to any such workman to report to the
specified authorities of both the States and also the next-of-kin of the workman
 Child Labour (Prohibition and
Regulation) Act, 1986
Object?
 To prohibit the engagement of children in certain
employments and to regulate the conditions of work or
children in certain other employments.

 Child means a person who has not completed his fourteen years of
age.

 Penalties
 Violations under Section-3 shall be
 punishable with imprisonment - 3 months to 1 year or

 with fine of Rs.10,000 to Rs.20,000 or with both.

 Continuing offence shall be punishable with imprisonment for a term of 6 months

to 2 years.
Unorganized Workers Social
Security Act, 2008
Object?
 To provide for the social security and welfare of
unorganised workers and for other matters
connected therewith or incidental thereto.

 Unorganized workers means a home based worker, self employed

0r a wage worker in the unorganized sector & includes a worker in
the organized sector who is not covered under
 The Central Government formulated schemes for different
sections of unorganized workers on matters relating to
 life and disability cover;
 health and maternity benefits;
 old age protection
 any other benefit as may be determined by the Central Government

 The State Government formulated schemes for unorganized

workers relating to
 provident fund,
 employment injury benefits,
 housing,
 educational schemes for children,
 skill upgradation,
 funeral assistance and
 old-age homes
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