A Handbook on Labour Laws of India

Rajkumar S. Adukia
B.Com (Hons.), LL.B, AICWA, FCA
rajkumarfca@mai!.com " radukia@#sn!.com
$%%&'""www.carajkumarradukia.com
()*+*( ,-(.) " ()*++- *),.+
PREFACE
/0o s1cur1 %o 1ac$ !abour1r %$1 w$o!1 &roduc% of $is !abour, or as n1ar!2 as &ossib!1, is a
wor%$2 obj1c% of an2 ood 3o#1rnm1n%4 said Abraham Lincoln.
Industrialisation poses a challenge for an entrepreneur in the form of management of the
resources. The management and effective and efficient deployment of the resources of the
organisation is the factor which decides the profitability and viability of any organisation .Labour is
one of the basic resources of any industry and has an important bearing on the performance and
goals of the organisation. In India we have a plethora of Laws which deals with issues concerning
Labour administration, labour welfare, regulation of industrial relations between the management
and the workers. For the effective and efficient management of labour in an industry or an
organisation it is necessary to have a complete knowledge of the Laws, bye laws, regulations and
ordinances applicable to the industry in general and to the company or organisation specifically.
The laws and bye laws applicable to labour issues and interests provides for various compliances
in accordance with procedures laid therein. This book provides a brief insight into the Laws, bye
laws, Regulations, notifications applicable to labour and labour issues.

The salient features of the entral Labour Acts in force in India are given here under! The Indian
Factories Act of "#$% provides for the health, safety and welfare of the workers. The &hops and
ommercial 'stablishment Act regulates the conditions of work and terms of employment of
workers engaged in shops, commercial establishments, theatres, restaurants, etc. The (aternity
)enefit Act provides for the grant of cash benefits to women workers for specified periods before
and after confinements. The 'mployment of hildren Act, "#*%, prohibits the employment of
young children below the age of "+ years in certain risky and unhealthy occupations. The
payment of wages Act, "#*,, regulates the timely payment of wages without any unauthori-ed
deductions by the employers. The (inimum .ages Act, "#$%, ensures the fi/ation and revision
of minimum rates of wages in respect of certain scheduled industries involving hard labour. The
Industrial 0isputes Act, "#$1, provides for the investigation, and settlement of industrial disputes
by mediation, conciliation, ad2udication and arbitration, there is scope for payment of
compensation in cases of lay3off and retrenchment. The Industrial 'mployment 4&tanding
5rders6 Act, "#$,, re7uires employers in Industrial establishments to define precisely the
conditions of employment under them and make them known to their workmen. These rules,
once certified, are binging on the parties for a minimum period of si/ months. The .orkmen8s
ompensation Act, "#9*, provides for compensation to in2ured workmen of certain categories and
in the case of fatal accidents to their dependants if the accidents arose out of and in the course of
their employment. It also provides for payment of compensation in the case of certain
occupational diseases. The Indian Trade :nions Act, "#9,, recogni-es the right of workers to
organise into trade unions, and when registered, they have certain rights and obligations and
function as autonomous bodies. The 'mployees8 &tate Insurance Act, "#$%, provides for sickness
benefit, maternity benefit, disablement benefit and medical benefit. The 'mployees8 ;rovident
Fund Act, "#+9, seeks to make a provision for the future of industrial worker after he retires or in
case he is retrenched, or for his dependents in case of his early death.

The labour welfare work, thus, covers a wide range of activities and in its present form is widely
recognised and is regarded as an integral part of the industrial system and management.
This book retains my original three aims! 4i6 to provide a clear and precise e/planation of the
meaning of a particular word or phrase< 4ii6 to help the employer as well as the employee find
answers to many of the 7uestions that might crop up during a dispute or problem< 4iii6 to identify
where a problem might occur upon which, when re7uired, further advice and counsel should be
sought.
I shall appreciate further 7uestions from our readers and all concerned on various issues so that
they can be included in our future edition or replied through email ra2kumarfca=gmail.com.
.e will appreciate if our readers can give suggestions and criticism and call our attention to
errors which might have inadvertently crept in. Alternatively, the readers can also post their
7ueries at http!>>www.cara2kumarradukia.com. I would be glad to receive your 7ueries or
suggestions. Those who are Interested in getting similar technical material on a regular basis can
send an email to cara2kumarradukia3subscribe=yahoogroups.com and subscribe to our yahoo
group.

TABLE OF CONTENTS
Part 1
Introduction
"." .hat is Labour Law?
".9 lassification of @arious Labour Laws
".* Labour Aurisdiction3 &tate vs entral
".$ Labour ;olicy of India
5ar% +
C1n%ra! Labour Laws
9." The Factories Act, "#$%
9.9 hild Labour 4;rohibition and Regulation6 Act, "#%,
9.* )onded Labour &ystem 4Abolition6 Act, "#1,
9.$ The 'mployment '/changes 4ompulsory Botification of @acancies6 Act, "#+#
9.+ Apprentices Act, "#,"
9., 'mployees ;rovident Fund and (iscellaneous ;rovisions Act, "#+9
9.1 The 'mployees &tate Insurance Act 4'&I Act6, "#$%
9.% ;ayment of Cratuity Act, "#19
9.# ;ayment of )onus Act, "#,+
9."D ;ayment of .ages Act, "#*,
5ar% *
Labour Law Conc1ssions
*." Labour Laws and &&I
*.9 Labour Laws and &'E
5ar% .
W$ic$ cour% %o a&&roac$ in cas1 of a !abour dis&u%16
$." Audicial &ystem in India
$.9 .here to file?
$.* .hat matters fall within the 2urisdiction of Industrial Tribunals?
$.$ .hat matters fall within the Aurisdiction of Labour ourts?
$.+ &tages of ad2udication in labour or industrial disputes
$., (ediation in Labour 0isputes
5ar% 7
+." Address of Labour ommissioners
+.9 About the Author
Part 1
Introduction
-.- W$a% is Labour Law6
.ikipedia, the internet encyclopedia defines labour law as FLabour Law is the body of laws,
administrative rulings, and precedents which address the relationship between and among
employers, employees, and labor organi-ations, often dealing with issues of public lawG. The
terms Labour Laws and 'mployment Laws, are often interchanged in the usage. This has led to a
big confusion as to their meanings. Labour Laws are different from employment laws which deal
only with employment contracts and issues regarding employment and workplace discrimination
and other private law issues.
'mployment Laws cover broader area than labour laws in the sense that employment laws cover
all the areas of employer>employee relationship e/cept the negotiation process covered by labour
law and collective bargaining.
Labour Laws harmoni-e many angles of the relationship between trade unions, employers and
employees. In some countries 4like anada6, employment laws related to unionised workplaces
are different from those relating to particular individuals. In most countries however, no such
distinction is made.
The final goal of labour law is to bring both the employer and the employee on the same level,
thereby mitigating the differences between the two ever3warring groups.
8riins of Labour Laws
Labour laws emerged when the employers tried to restrict the powers of workersH organisations
and keep labour costs low. The workers began demanding better conditions and the right to
organise so as to improve their standard of living. 'mployer8s costs increased due to workers
demand to win higher wages or better working conditions. This led to a chaotic situation which
re7uired the intervention of Covernment. In order to put an end to the disputes between the ever3
warring employer and employee, the Covernment enacted many labour laws.
In India the labour laws are so numerous, comple/ and ambiguous that they promote litigation
rather than the resolution of problems relating to industrial relations. The labour movement has
contributed a lot for the enactment of laws protecting labour rights in the "#th and 9Dth centuries.
The history of labour legislation in India can be traced back to the history of )ritish colonialism.
The influences of )ritish political economy were naturally dominant in sketching some of these
early laws. In the beginning it was difficult to get enough regular Indian workers to run )ritish
establishments and hence laws for chartering workers became necessary. This was obviously
labour legislation in order to protect the interests of )ritish employers.
The )ritish enacted the Factories Act with a really self3centered motive. It is well known that
Indian te/tile goods offered serious competition to )ritish te/tiles in the e/port market. In order to
make India labour costlier, the Factories Act was first introduced in "%%* because of the pressure
brought on the )ritish parliament by the te/tile moguls of (anchester and Lancashire. Thus we
received the first stipulation of eight hours of work, the abolition of child labour, and the restriction
of women in night employment, and the introduction of overtime wages for work beyond eight
hours. .hile the impact of this measure was clearly for the welfare of the labour force the real
motivation was undoubtedly the protection their vested interests.
India provides for core labour standards of IL5 for welfare of workers and to protect their
interests. India has a number of labour laws addressing various issues such as resolution of
industrial disputes, working conditions, labour compensation, insurance, child labour, e7ual
remuneration etc. Labour is a sub2ect in the concurrent list of the Indian onstitution and is
therefore in the 2urisdiction of both central and state governments. )oth central and state
governments have enacted laws on labour issues. entral laws grant powers to officers under
central government in some cases and to the officers of the state governments in some cases.
-.+ C!assifica%ion of 9arious Labour Laws
There are over $+ legislations on labour from the entral Covernment and the number of
legislations enacted by the &tate Covernments is close to four times that of the entral Acts.
Labour Laws can be classified into the following eight categories!
4i6 Laws related to Industrial Relations
4ii6 Laws related to .ages
4iii6 Laws related to &pecific Industries
4iv6 Laws related to '7uality and 'mpowerment of .omen
4v6 Laws related to 0eprived and 0isadvantaged &ections of the &ociety
4vi6 Laws related to &ocial &ecurity
4vii6 Laws related to 'mployment I Training
4viii6 5thers
Laws r1!a%1d %o Indus%ria! R1!a%ions
" The Trade :nions Act, "#9,
9 The Industrial 'mployment 4&tanding 5rders6 Act, "#$,
The Industrial 'mployment 4&tanding 5rders6 Rules, "#$,
* The Industrial 0isputes Act, "#$1
Laws r1!a%1d %o Wa1s
" The ;ayment of .ages Act, "#*,
The ;ayment of .ages Rules, "#*1
9 The (inimum .ages Act, "#$%
The (inimum .ages 4entral6 Rules, "#+D
* The .orking Aournalist 4Fi/ation of Rates of .ages6 Act, "#+%
.orking Aournalist 4onditions of service6 and (iscellaneous ;rovisions Rules, "#+1
$ The ;ayment of )onus Act, "#,+
The ;ayment of )onus Rules, "#1+
Laws r1!a%1d %o S&1cific Indus%ri1s
" The Factories Act, "#$%
9 The 0ock .orkers 4Regulation of 'mployment6 Act, "#$%
* The ;lantation Labour Act, "#+"
$ The (ines Act, "#+9
+ The .orking Aournalists and other Bewspaper 'mployees8 4onditions of &ervice and
(isc. ;rovisions6 Act, "#++
The .orking Aournalists and other Bewspaper 'mployees8 4onditions of
&ervice and (isc. ;rovisions6 Rules, "#+1
, The (erchant &hipping Act, "#+%
1 The (otor Transport .orkers Act, "#,"
% The )eedi I igar .orkers 4onditions of 'mployment6 Act, "#,,
# The ontract Labour 4Regulation I Abolition6 Act, "#1D
"D The &ales ;romotion 'mployees 4onditions of &ervice6 Act, "#1,
The &ales ;romotion 'mployees 4onditions of &ervice6 Rules, "#1,
"" The Inter3&tate (igrant .orkmen 4Regulation of 'mployment and onditions of &ervice6
Act, "#1#
"9 The &hops and 'stablishments Act
"* The inema .orkers and inema Theatre .orkers 4Regulation of 'mployment6 Act,
"#%"
The inema .orkers and inema Theatre .orkers 4Regulation of 'mployment6 Rules,
"#%$
The ine .orkers8 .elfare Fund Act, "#%".
"$ The 0ock .orkers 4&afety, Jealth I .elfare6 Act, "#%,
"+ The )uilding I 5ther onstruction .orkers 4Regulation of 'mployment I onditions of
&ervice6 Act, "##,
", The 0ock .orkers 4Regulation of 'mployment6 4inapplicability to (a2or ;orts6 Act, "##1
"1 The (ica (ines Labour .elfare Fund Act, "#$,
"% The Limestone I 0olomite (ines Labour .elfare Fund Act, "#19
"# The )eedi .orkers .elfare Fund Act, "#1,
9D The )eedi .orkers .elfare ess Act, "#1,
9" The Iron 5re (ines, (anganese 5re (ines I hrome 5re (ines Labour .elfare Fund
Act, "#1,
99 The Iron 5re (ines, (anganese 5re (ines I hrome 5re (ines Labour .elfare ess
Act, "#1,
9* The ine .orkers .elfare Fund Act, "#%"
9$ The ine .orkers .elfare ess Act, "#%"
9+ The 'mployment of (anual &cavengers and onstruction of 0ry latrines ;rohibition Act,
"##*
9, The oal (ines 4onservation and 0evelopment6 Act, "#1$
Laws r1!a%1d %o :;ua!i%2 and :m&ow1rm1n% of Wom1n
" The (aternity )enefit Act, "#,"
9 The '7ual Remuneration Act, "#1,
Laws r1!a%1d %o <1&ri#1d and <isad#an%a1d S1c%ions of %$1 Soci1%2
" The )onded Labour &ystem 4Abolition6 Act, "#1,
9 The hild Labour 4;rohibition I Regulation6 Act, "#%,
Laws r1!a%1d %o Socia! S1curi%2
" The .orkmen8s ompensation Act, "#9*
9 The 'mployees8 &tate Insurance Act, "#$%
* The 'mployees8 ;rovident Fund I (iscellaneous ;rovisions Act, "#+9
$ The ;ayment of Cratuity Act, "#19
Laws r1!a%1d %o :m&!o2m1n% = 0rainin
" The 'mployment '/changes 4ompulsory Botification of @acancies6 Act, "#+#
The 'mployment '/changes 4ompulsory Botification of @acancies6 Rules, "#+#
9 The Apprentices Act, "#,"

8%$1rs
" The Fatal Accidents Act, "%++
9 The .ar In2uries 5rdinance Act, "#$*
* The .eekly Joliday Act, "#$9
$ The Bational and Festival Jolidays Act
+ The .ar In2uries 4ompensation Insurance6 Act, "#$*
, The ;ersonal In2uries 4'mergency6 ;rovisions Act, "#,9
1 The ;ersonal In2uries 4ompensation Insurance6 Act, "#,*
% The Labour Laws 4'/emption from Furnishing Returns and (aintaining Register by
ertain 'stablishments6 Act, "#%%
# The ;ublic Liability Insurance Act, "##"
".* Labour >urisdic%ion?S%a%1 #s C1n%ra!
@nd1r %$1 Cons%i%u%ion of India, Labour is a subj1c% in %$1 Concurr1n% Lis% w$1r1 bo%$ %$1
C1n%ra! = S%a%1 3o#1rnm1n%s ar1 com&1%1n% %o 1nac% !1is!a%ion subj1c% %o c1r%ain ma%%1rs
b1in r1s1r#1d for %$1 C1n%r1.
Cons%i%u%iona! S%a%us
:nion List oncurrent List
'ntry Bo. ++ ! Regulation of labour and safety in
mines and oil fields
'ntry Bo. 99! Trade :nions< industrial and labour
disputes.
'ntry Bo. ,"! Industrial disputes concerning
:nion employees
'ntry Bo.9*! &ocial &ecurity and insurance,
employment and unemployment.
'ntry Bo.,+! :nion agencies and institutions for
K@ocational ...training...K
'ntry Bo. 9$! .elfare of about including
conditions of work, provident funds, employers
Hinvalidity and old age pension and maternity
benefit.
(atters relating to &ocial &ecurity are 0irective ;rinciples of &tate ;olicy and the sub2ects in the
oncurrent List. The following social security issues are mentioned in the oncurrent List 4List III
in the &eventh &chedule of the onstitution of India6 L
I%1m Ao. +*' &ocial &ecurity and insurance, employment and unemployment.
I%1m Ao. +.! .elfare of Labour including conditions of work, provident funds, employers8 liability,
workmen8s compensation, invalidity and old age pension and maternity benefits.
5ar% III Fundam1n%a! Ri$%s
Ar%ic!1-,. :;ua!i%2 of o&&or%uni%2 in ma%%1rs of &ub!ic 1m&!o2m1n%.?
4"6 There shall be e7uality of opportunity for all citi-ens in matters relating to employment or
appointment to any office under the &tate.
496 Bo citi-en shall, on grounds only of religion, race, caste, se/, descent, place of birth,
residence or any of them, be ineligible for, or discriminated against in respect of, any employment
or office under the &tate.
4*6 Bothing in this article shall prevent ;arliament from making any law prescribing, in regard to a
class or classes of employment or appointment to an office under the Covernment of, or any local
or other authority within, a &tate or :nion territory, any re7uirement as to residence within that
&tate or :nion territoryM prior to such employment or appointment.
4$A6 Bothing in this article shall prevent the &tate from making any provision for reservation in
matters of promotion to any class or classes of posts in the services under the &tate in favour of
the &cheduled astes and the &cheduled Tribes which, in the opinion of the &tate, are not
ade7uately represented in the services under the &tate.
4$)6 Bothing in this article shall prevent the &tate from considering any unfilled vacancies of a
year which are reserved for being filled up in that year in accordance with any provision for
reservation made under clause 4$6 or clause 4$A6 as a separate class of vacancies to be filled up
in any succeeding year or years and such class of vacancies shall not be considered together
with the vacancies of the year in which they are being filled up for determining the ceiling of fifty
per cent reservation on total number of vacancies of that year.
4+6 Bothing in this article shall affect the operation of any law which provides that the incumbent
of an office in connection with the affairs of any religious or denominational institution or any
member of the governing body thereof shall be a person professing a particular religion or
belonging to a particular denomination.
Ar%ic!1+.. 5ro$ibi%ion of 1m&!o2m1n% of c$i!dr1n in fac%ori1s, 1%c. NBo child below the age
of fourteen years shall be employed to work in any factory or mine or engaged in any other
ha-ardous employment.
5ar% I9 <ir1c%i#1 5rinci&!1s of S%a%1 5o!ic2
Ar%ic!1 .- Ri$% %o work, %o 1duca%ion and %o &ub!ic assis%anc1 in c1r%ain cas1s
The &tate shall, within the limits of its economic capacity and development, make effective
provision for securing the right to work, to education and to public assistance in cases of
unemployment, old age, sickness and disablement, and in other cases of undeserved want.
Ar%ic!1 .+ 5ro#ision for jus% and $uman1 condi%ions of work and ma%1rni%2 r1!i1f
The &tate shall make provision for securing 2ust and humane conditions of work and for maternity
relief.
Ar%ic!1.*. Li#in wa1, 1%c., for work1rs.NThe &tate shall endeavour to secure, by suitable
legislation or economic organisation or in any other way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full
en2oyment of leisure and social and cultural opportunities and, in particular, the &tate shall
endeavour to promote cottage industries on an individual or co3operative basis in rural areas.
Ar%ic!1.*A. 5ar%ici&a%ion of work1rs in mana1m1n% of indus%ri1s.NThe &tate shall take
steps, by suitable legislation or in any other way, to secure the participation of workers in the
management of undertakings, establishments or other organisations engaged in any industry.
-.. Labour 5o!ic2 of India
Labour policy in India has been evolving in response to specific needs of the situation to suit
re7uirements of planned economic development and social 2ustice and has two3fold ob2ectives,
vi-., maintaining industrial peace and promoting the welfare of labour.
Labour 5o!ic2 Hi$!i$%s
reative measures to attract public and private investment.
reating new 2obs
Bew &ocial security schemes for workers in the unorganised sector.
&ocial security cards for workers.
:nified and beneficial management of funds of .elfare )oards.
Reprioriti-ation of allocation of funds to benefit vulnerable workers.
(odel employee3employer relationships.
Long term settlements based on productivity.
@ital industries and establishments declared as Opublic utilitiesO.
&pecial conciliation mechanism for pro2ects with investments of Rs."+D crores or more.
Industrial Relations committees in more sectors.
Labour Law reforms in tune with the times. 'mpowered body of e/perts to suggest
re7uired changes.
&tatutory amendments for e/pediting and streamlining the mechanism of Labour
Audiciary.
Amendments to Industrial 0isputes Act in tune with the times.
'fficient functioning of Labour 0epartment.
(ore labour sectors under (inimum .ages Act.
hild labour act to be aggressively enforced.
(odern medical facilities for workers.
Rehabilitation packages for displaced workers.
Restructuring in functioning of employment e/changes. omputeri-ation and updating of
data base.
Revamping of curriculum and course content in industrial training.
Aoint cell of labour department and industries department to study changes in laws and
rules.
0$1 Fac%ori1s Ac%, -).B
8bj1c%i#1s
". To ensure ade7uate safety measures and to promote the health and welfare of the
workers employed in factories.
9. To prevent hapha-ard growth of factories through the provisions related to the approval of
plans before the creation of a factory.
A&&!icabi!i%2 of %$1 Ac%
". Applicable to the whole of India including Aammu I Pashmir.
9. overs all manufacturing processes and establishments falling within the definition of
Qfactory8.
*. Applicable to all factories using power and employing "D or more workers, and if not
using power, employing 9D or more workers on any day of the preceding "9 months.
Sc$1m1 of %$1 Ac%
". The Act consists of "9D &ections and * &chedules.
9. &chedule " contains list of industries involving ha-ardous processes
*. &chedule 9 is about permissible level of certain chemical substances in work
environment.
$. &chedule * consists of list of notifiable diseases.
Im&or%an% &ro#isions %$1 Ac%
Faci!i%i1s and Con#1ni1nc1s 3 The factory should be kept clean. R&ection ""M. There should be
arrangement to dispose of wastes and effluents. R&ection "9M. @entilation should be ade7uate.
Reasonable temperature for comfort of employees should be maintained. R&ection "*M. 0ust and
fumes should be controlled below permissible limits. R&ection "$M. Artificial humidification should
be at prescribed standard level. R&ection "+M. 5vercrowding should be avoided. R&ection ",M.
Ade7uate lighting, drinking water, latrines, urinals and spittoons should be provided. R&ections "1
to "#M. Ade7uate spittoons should be provided. R&ection 9DM.
W1!far1 3 Ade7uate facilities for washing, sitting, storing cloths when not worn during working
hours. R&ection $9M. If a worker has to work in standing position, sitting arrangement to take short
rests should be provided. R&ection $$M. Ade7uate First aid bo/es shall be provided and
maintained R&ection $+M.
Faci!i%i1s in cas1 of !ar1 fac%ori1s 3 Following facilities are re7uired to be provided by large
factories 3 S Ambulance room if +DD or more workers are employed S anteen if 9+D or more
workers are employed. It should be sufficiently lighted and ventilated and suitably located.
R&ection $,M. S Rest rooms > shelters with drinking water when "+D or more workmen are
employed R&ection $1M S rTches if *D or more women workers are employed. R&ection $%M S Full
time .elfare 5fficer if factory employs +DD or more workers R&ection $#M S &afety 5fficer if ",DDD
or more workmen are employed.
Saf1%2 3 All machinery should be properly fenced to protect workers when machinery is in motion.
R&ection 9" to 91M. Joists and lifts should be in good condition and tested periodically. R&ection 9%
and 9#M. ;ressure plants should be checked as per rules. R&ection *"M. Floor, stairs and means of
access should be of sound construction and free form obstructions. R&ection *9M. &afety
appliances for eyes, dangerous dusts, gas, fumes should be provided. R&ections *+ and *,M.
.orker is also under obligation to use the safety appliances. Je should not misuse any
appliance, convenience or other things provided. R&ection """M. In case of ha-ardous substances,
additional safety measures have been prescribed. R&ections $"A to $"JM. 3 3 Ade7uate fire fighting
e7uipment should be available. R&ection *%M. 3 3 &afety 5fficer should be appointed if number of
workers in factory are ",DDD or more. R&ection $D)M.
Workin Hours 3 A worker cannot be employed for more than $% hours in a week. R&ection +"M.
.eekly holiday is compulsory. If he is asked to work on weekly holiday, he should have full
holiday on one of three days immediately or after the normal day of holiday. R&ection +94"6M. Je
cannot be employed for more than # hours in a day. R&ection +$M. At least half an hour rest should
be provided after + hours. R&ection ++M. Total period of work inclusive of rest interval cannot be
more than "D.+ hours. R&ection +,M. A worker should be given a weekly holiday. 5verlapping of
shifts is not permitted. R&ection +%M. Botice of period of work should be displayed. R&ection ,"M.
8#1r%im1 Wa1s 3 If a worker works beyond # hours a day or $% hours a week, overtime wages
are double the rate of wages are payable. R&ection +#4"6M. A workman cannot work in two
factories. There is restriction on double employment. R&ection ,DM. Jowever, overtime wages are
not payable when the worker is on tour. Total working hours including overtime should not e/ceed
,D in a week and total overtime hours in a 7uarter should not e/ceed +D. Register of overtime
should be maintained. 3 3 An employee working outside the factory premises like field workers
etc. on tour outside head7uarters are not entitled to overtime. L R Ananthan v. Avery India
"#194$96 FAR *D$ 4(ad J6 S 0irector of &tores v. ; & 0ube "#1% Lab I *#D U +9 FAR 9## U
"#1% I LLB $,$ U *, FLR $9D.
:m&!o2m1n% of Wom1n 3 A woman worker cannot be employed beyond the hours , a.m. to 1.DD
pm. &tate Covernment can grant e/emption to any factory or group or class of factories, but no
woman can be permitted to work during "D ;( to + A(. &hift change can be only after weekly or
other holiday and not in between. R&ection ,,M.
Ai$% S$if% for wom1n'
Factories Act is proposed to be amended to allow night shift for women workers. The Covernment
has decided to amend &ection ,, of the Factories Act, "#$% to allow employment of women
workers between 1.DD pm and ,.DD am. The demand of women8s organisations and in tune with
the present economic globali-ation, the Covernment has decided to bring in then re7uired
changes in the Act. This fle/ibility would be available to all manufacturing units including the
apparel sector. This decision has been taken after meetings with the representatives of the
employers and the trade unions. The proposed )ill will empower the &tate Covernments for
allowing the necessary fle/ibility in employment of women during night shift in factories.
The proposed amendment would inter3alia provide that the employer has to ensure occupational
safety and ade7uate protection to the women workers. Jowever, the &tate Covernment or any
person authorised by it would be allowing employment of women during night only after
consulting the workers or their representative organisations and concerned employers or their
representatives. The &tate Covernments are also empowered to frame their own rules for
allowing such permissions.
R1cord of Workm1n 3 A register 4muster roll6 of all workers should be maintained. Bo worker
should be permitted to work unless his name is in the register. Record of overtime is also re7uired
to be maintained. R&ection ,9M.
L1a#1 3 A worker is entitled in every calendar year annual leave with wages at the rate of one day
for every 9D days of work performed in the previous calendar year, provided that he had worked
for 9$D days or more in the previous calendar year. hild worker is entitled to one day per every
"+ days. .hile calculating 9$D days, earned leave, maternity leave upto "9 weeks and lay off
days will be considered, but leave shall not be earned on those days. R&ection 1#M. L Leave can
be accumulated upto *D days in case of adult and $D days in case of child. Leave admissible is
e/clusive of holidays occurring during or at either end of the leave period. .age for period must
be paid before leave begins, if leave is for $ or more days. R&ection %"M. Leave cannot be taken
for more than three times in a year. Application for leave should not normally be refused. RThese
are minimum benefits. 'mployer can, of course, give additional or higher benefitsM.
Wa1s for 80 and L1a#1 Sa!ar2 3 H.agesH for leave encashment and overtime will include
dearness allowance and cash e7uivalent of any benefit. Jowever, it will not include bonus or
overtime.
C$i!d :m&!o2m1n% 3 hild below age of "$ cannot be employed. R&ection ,1M. hild above "$
but below "+ years of age can be employed only for $.+ hours per day or during the night.
R&ection 1"M. Je should be certified fit by a certifying surgeon. R&ection ,%M. Je cannot be
employed during night between "D pm to , am. R&ection 1"M. A person over "+ but below "% years
of age is termed as Qadolescent8. Je can be employed as an adult if he has a certificate of fitness
for a full dayHs work from certifying surgeon. An adolescent is not permitted to work between 1 pm
and , am. R&ection 1DM. There are more restrictions on employment of female adolescent. 3 3
Register of child workers should be maintained. R&ection 1*M.
<is&!a2 on Ao%ic1 Board 3 A notice containing abstract of the Factories Act and the rules made
thereunder, in 'nglish and local language should be displayed. Bame and address of Factories
Inspector and the certifying surgeon should also be displayed on notice board. R&ection "D%4"6M.
Ao%ic1 of Accid1n%s, <is1as1s :%c. 3 Botice of any accident causing disablement of more than
$% hours, dangerous occurrences and any worker contacting occupational disease should be
informed to Factories Inspector. R&ection %%M. Botice of dangerous occurrences and specified
diseases should be given. R&ections %%A and %#M.
8b!ia%ion r1ardin HaCardous 5roc1ss1s " Subs%anc1s 3 Information about ha-ardous
substances > processes should be given. .orkers and general public in vicinity should be
informed about dangers and health ha-ards. &afety measures and emergency plan should be
ready. &afety ommittee should be appointed.
Lis% of Indus%ri1s In#o!#in HaCardous 5roc1ss1s
0H: FIRS0 SCH:<@L:
DS11 S1c%ion +(cb)E
". Ferrous metallurgical Industries
3 Integrated Iron and &teel
3 Ferro3alloys
3 &pecial &teels
9. Bon3ferrous metallurgical Industries
3 ;rimary (etallurgical Industries, namely, -inc, lead, copper manganese and aluminium
*. Foundries 4ferrous and non3ferrous6
3 astings and forgings including cleaning or smoothing>roughening by sand and shot blasting.
$. oal 4including coke6 industries. 3 oal, Lignite, oke, etc.
3 Fuel Cases 4including oal gas, ;roducer gas, .ater gas6
+. ;ower Cenerating Industries
,. ;ulp and paper 4including paper products6 industries
1. Fertiliser Industries
3 Bitrogenous
3 ;hosphatic
3 (i/ed
%. ement Industries
3 ;ortland ement 4including slag cement, pu--olona cement and their products6
#. ;etroleum Industries
3 5il Refining
3 Lubricating 5ils and Creases
"D. ;etro3chemical Industries
"". 0rugs and ;harmaceutical Industries
3 Barcotics, 0rugs and ;harmaceuticals
"9. Fermentation Industries 40istilleries and )reweries6
"*. Rubber 4&ynthetic6 Industries
"$. ;aints and ;igment Industries
"+. Leather Tanning Industries
",. 'lectro3plating Industries
"1. hemical Industries
3 oke 5ven by3products and oaltar 0istillation ;roducts
3 Industrial Cases 4nitrogen, o/ygen, acetylene, argon, carbon3dio/ide, hydrogen, sulphur3
dio/ide, nitrous o/ide, halogenated hydro3carbon, o-one etc.6
3 Industrial arbon
3 Alkalies and Acids
3 hromates and dichromates
3 Leads and its compounds
3 'lectrochemicals 4metallic sodium, potassium and magnesium, chlorates, perchlorates and
pero/ides6
3 'lectrothermal produces 4artificial abrasive, calcium carbide6
3 Bitrogenous compounds 4cyanides, cyanamides and other nitrogenous compounds6
3 ;hosphorous and its compounds
3 Jalogens and Jalogenated compounds 4hlorine, Fluorine, )romine and Iodine6
3 '/plosives 4including industrial e/plosives and detonators and fuses6
"%. Insecticides, Fungicides, herbicides and other ;esticides Industries
"#. &ynthetic Resin and ;lastics
9D. (an3made Fibre 4ellulosic and non3cellulosic6 Industry
9". (anufacture and repair of electrical accumulators
99. Class and eramics
9*. Crinding or gla-ing of metals
9$. (anufacture, handling and processing of asbestos and its products
9+. '/traction of oils and fats from vegetable and animal sources
9,. (anufacture, handling and use of ben-ene and substances containing ben-ene
91. (anufacturing processes and operations involving carbon disulphide
9%. 0yes and 0yestuff including their intermediates
9#. Jighly flammable li7uids and gases.
5:RFISSIBL: L:9:LS 8F C:R0AIA CH:FICAL S@BS0AAC:S IA W8RG :A9IR8AF:A0
0H: S:C8A< SCH:<@L:
DS11 S1c%ion .-FE
S!.
Ao.
Subs%anc1 51rmissib!1 !imi%s of 1H&osur1
r 1
0im1?W1i$%1d
a#1ra1
conc1n%ra%ion
(0WA)
(0WA)
S$or%?%1rm
1H&osur1
!imi%s (-7
min.)
(S0:L)
a A 55m m"m* 55m m"m*
- + * . 7 ,
" Acetaldehyde "DD "%D "+D 91D
9 Acetic Acid "D 9+ "+ *1
* Acetone 1+D "1%D "DDD 9*1+
$ Acrolein D" D.9+ D.* D.%
+ Acrylonitrile3skin 4&.6 9 $.+ 3 3
, Aldrin3skin 3 D.9+ 3 3
1 Allyl hloride " * 9 ,
% Ammonia D.9+ "% *+ 91
# Aniline3skin 9 "D 3 3
"D
Anisidine 45.;.isomers63
skin
D." D.+ 3 3
""
Arsenic I &oluble
compounds 4as As6
3 D.9 3 3
"9 )en-ene 4&.6 "D *D 3 3
"*
)eryllium I ompounds
4as )e6 4&.6
3 D.DD9 3 3
"$ )oron trifluoride " * 3 3
"+ )romine D." D.1 D.* 9
", )utane %DD "#DD 3 3
"1
93)utanone 4(ethyle
ethyle Petone ('P6
9DD +#D *DD %%+
"% B3)utyl acetate "+D 1"D 9DD #+D
"# B3)utyl alcohol3skin3 +D "+D 3 3
9D &ce>tert, )utyl acetate 9DD #+D 3 3
9" )utyl (ercaptan D.+ ".+ 3 3
99
admium3dust and salts
4as d6
3 D.D+ 3 3
9* alcium o/ide 3 9 3 3
9$ arbaryl 4&evin6 3 + 3 3
9+ arbofuran 4Furadan6 3 D." 3 3
9, arbon disulphide3skin "D *D 3 3
91 arbon mono/ide +D ++ $DD $$D
9%
arbon tetrachloride3skin
4&..6
+ *D 3 3
9# hlordane3skin 3 D.+ 3 9
*D hlorine " * * #
*"
hloroben-ene
4monochloroben-ene6
1+ *+D 3 3
*9 hloroform 4&..6 "D +D 3 3
**
bis34hloromethyl6 ether
4J..6
D.DD" D.DD+ 3 3
*$ hromic acid and
chromates 4as r6 4.ater
soluble6
3 D.D+ 3 3
*+ hromous &alts 4as r6 3 D.+ 3 3
*, opper fume 3 D.9 3 3
*1 otton dust, raw 3 D.9 3 3
*% resoal, all isomers3skin + 99 3 3
*# yanides 4as n63skin 3 + 3 3
$D yanogen "D 9D 3 3
$"
00T 40ichlorodiphenyl
Trichloroethane6
3 " 3 3
$9 0emeton3skin D.D" D." 3 3
$* 0ia-inon3skin 3 D." 3 3
$$ 0ibutyl ;hythalate 3 + 3 3
$+ 0ichlorous 400@;63skin 3 " 3 3
$, 0ieldrin3skin 3 D.9+ 3 3
$1 0initroben-ene 4all D."+ " 3 3
isomers63skin
$% 0initrotoluene3skin 3 ".+ 3 3
$# 0iphenyl 4)iphenyl6 D.9 ".+ 3 3
+D
'ndosulfan 4Thiodan63
skin
3 D." 3 3
+" 'ndrin3skin 3 D." 3 3
+9 'thyl acetate $DD "$DD 3 3
+* 'thyl alcohol "DDD "#DD 3 3
+$ 'thylamin "D "% 3 3
++ Fluorides 4as F6 3 9.+ 3 3
+, Fluorine " 9 9 $
+1 Formaldehyde 4&..6 ".D ".+ 9 *
+% Formic Acid + # 3 3
+# Casoline *DD #DD +DD "+DD
,D Jydra-ine3skin 4&..6 D." D." 3 3
," Jydrogen hloride3 + 1 a a
,9
Jydrogen yanide skin3

"D "D 3 3
,*
Jydrogen Fluoride 4as
F63
* 9.+ 3 3
,$ Jydrogen ;ero/ide " ".+ 3 3
,+ Jydrogen &ulphide "D "$ "+ 9"
,, Iodine3 D." " 3 3
,1
Iron 5/ide Fume 4FD9D*6
4as Fe6
3 + 3 3
,% Isoamyl acetate "DD +9+ 3 3
,# Isoamyl alcohol "DD *,D "9+ $+D
1D Isobutyl alcohol +D "+D 3 3
1"
Lead, inorg, dusts, dusts
and fumes 4as ;b6
3 D."+ 3 3
19 Lindane3skin 3 D.+ 3 3
1* (alathion3skin 3 "D 3 3
1$
(anganese dust and
compounds 4as 4(n63
3 + 3 3
1+
(anganese Fume 4as
(n6
3 " 3 *
1, (ercury 4as Jg63skin a a a a
a 4i6 Alkyle compounds 3 D.D" 3 D.D*
a 4ii6 All forms e/cept alkyle 3 D.D+ 3 3
vapour
a
4iii6 Aryle and inorganic
compounds
3 D." 3 3
11
(ethyl alcohol
4(ethanol63skin
9DD 9,D 9+D *"D
1%
(ethyl cellosolve 493
metho/yethanol63skin
+ ", 3 3
1# (ethyl isobutyl Petone +D 9D+ 1+ *DD
%D (ethyl Isocyanate3skin D.D9 D.D+ 3 3
%" Baphthalene "D +D "+ 1+
%9 Bickel carbonyl 4as Bi6 D.D+ D.*+ 3 3
%* Bitric acid 9 + $ "D
%$ Bitric 5/ide 9+ *D 3 3
%+ Bitroben-ene3skin " + 3 3
%, Bitrogen dio/ide * , + "D
%1 5il mist mineral 3 + 3 "D
%% 5-one D." D.9 D.* D.,
%# ;arathion3skin 3 D." 3 3
#D ;henol3skin + "# a a
#" ;horate 4Thimet63skin 3 D.D+ D.9 3
#9
;hosgene 4arbonyl
hloride6
D." D.$ 3 3
#* ;hosphine D.* D.$ " "
#$ ;hosphoric acid 3 " 3 *
#+ ;hosphorus 4yellow6 3 D." 3 3
#,
;hosphorus penta3
chloride
D." " 3 3
#1 ;hosphorus trichloride D.9 ".+ D.+ *
#% ;icric acid3skin 3 D." 3 D.*
## ;yridine + "+ 3 3
"DD
&ilans 4silicon
tetrahydride6
+ 1 3 3
"D" &odium hydro/ide3 3 9 3 3
"D9
&tyrene, monomer
4phanylethlene6
+D 9"+ "DD $9+
"D* &ulphur dio/ide 9 + + "D
"D$ &ulphur he/afluoride "DDD ,DDD 3 3
"D+ &ulphuric acid 3 " 3 3
"D,
Tetraethyl lead 4as ;b6 3
&kin
3 D." 3 3
"D1 Toluene 4Toluol6 "DD *1+ "+D +,D
"D% 53Toluidine3skin 4&..6 9 # 3 3
"D# Tributylphosohate D.9 9.+ 3 3
""D Trichloroethylene +D 91D 9DD "D%D
""" :ranium natural 4as :6 3 D.9 3 D.,
""9 @inyl hloride 4J..6 + "D 3 3
""* .elding fumes 3 + 3 3
""$ Vylene 453m3;3isomers6 "DD $*+ "+D ,++
""+ Einc o/ide d a a a
f 4i6 Fume 3 +.D 3 "D
d 4ii6 0ust 4Total dust6 3 "D.DD 3 3
"",
Eirconium compounds
4as Er6
3 + 3 "D
0H: 0HIR< SCH:<@L:
DS11 S1c%ions B) and )(E
LIS0 8F A80IFIABL: <IS:AS:S
". Lead poisoning, including poisoning by any preparation or compound of lead or their se7uelae.
9. Lead tetra3ethyl poisoning
*. ;hosphorus poisoning or its se7uelae.
$. (ercury poisoning or its se7uelae.
+. (anganese poisoning or its se7uelae.
,. Arsenic poisoning or its se7uelae.
1. ;oisoning by nitrous fumes.
%. arbon disulphide poisoning.
#. )en-ene poisoning, including poisoning by any of its homologues, their nitro or amido
derivatives or its se7uelae.
"D. hrome ulceration or its se7uelae.
"". Anthra/.
"9. &ilicosis.
"*. ;oisoning by halogens or halogen derivatives of the hydrocarbons of the aliphatic series.
"$. ;athological manifestations due to
4a6 radium or other radio3active substances.
4b6 V3rays.
"+. ;rimary epitheliomatous cancer of skin.
",. To/ic anaemia.
"1. To/ic 2aundice due to poisonous substances.
"%. 5il acne or dermatitis due to mineral oils and compounds containing mineral oil base.
"#. )yssionosis.
9D. Asbestosis.
9". 5ccupational or contract dermatitis caused by direct contract with chemicals and paints.
These are of two types, that is primary irritants and allergic sensiti-ers.
99. Boise induced hearing loss 4e/posure to high noise levels6.
9*. )eriyllium poisoning.
9$. arbon mono/ide
9+. oal minersH pnoumoconiosis.
9,. ;hosgene poisoning.
91. 5ccupational cancer.
9%. Isocyanates poisoning.
9#. To/ic nephirits.
C$i!d Labour (5ro$ibi%ion = R1u!a%ion) Ac%, -)B,
In India, there are a number of Acts which prohibit the employment of children below "$ years
and "+ years in certain specified employments. Jowever, there is no procedure laid down in any
law for deciding in which employments, occupations or processes the employment of children
should be prohibited. There is also no law to regulate the working conditions of children in most of
the employments where they are not banned from working and are working under e/tremely
shady and 7uestionable conditions.
8bj1c%i#1s of C$i!d Labour (5ro$ibi%ion = R1u!a%ion) Ac%, -)B,
4i6 )an the employment of children, i.e. those who have not completed their fourteenth
year, in specified occupations and processes<
4ii6 Lay down a procedure to decide modifications to the &chedule of banned
occupations or processes<
4iii6 Regulate the conditions of work of children in employments where they are not
prohibited from working<
4iv6 Lay down enhanced penalties for employment of children in violation of the
provisions of this Act, and other Acts which forbid the employment of children<
4v6 To obtain uniformity in the definition of HchildH in the related laws.
Sc$1m1 of %$1 Ac% The Act consists of 9, &ections and " &chedule with 9 ;arts.
". ;art A consists of list of occupations where child labour is banned.
9. ;art ) consists of list of processes where child labour is banned.
Im&or%an% 5ro#isions of %$1 Ac%
W$o is a c$i!d6 According to the definition given u>s 94ii6 of the Act, a child means a person who
has not completed his fourteenth year of age.
W$1r1 is %$1 c$i!d !abour &ro$ibi%1d %o work6 Bo child is permitted to work in any the
occupations set forth in ;art A of the &chedule or any workshop wherein any of the processes set
forth in ;art ) of the &chedule is carried on. 4&ection *6
:H1m&%ion' The above prohibition does not apply to any workshop wherein any process is
carried on by the occupier with the aid of his family or to any school established by, or receiving
assistance or recognition from, Covernment.
W$1r1 c$i!d !abour is &1rmi%%1d6 '/cept the prohibitory occupations set forth in ;art A or
processes set forth in ;art ) of the &chedule, child labour is permitted to be employed but the
conditions of their work is re7uired to be regulated in accordance with ;art III of the Act.
R1s&onsibi!i%i1s of 1m&!o21rs %owards c$i!d !abour' ;lease refer to the note regarding the
responsibilities of the employer for the proper implementation of the Act and the Rules.
51na!%i1s' For the contravention of &ection * a person is punishable with not less than three
months imprisonment which may e/tend to one year or with fine not less than Rs."D,DDD>3 rupees
which may be e/tended up to Rs. 9D,DDD>3 or with both. For other offence, the punishment may
be simple imprisonment up to one month or with fine up to Rs. "D,DDD>3 of both. A conviction u>s
,1 of the Factories Act, "#$% or u>s 9" of the (otor Transport .orkers Act, "#," will attract the
penalties under the hild Labour 4;rohibition I Regulation6 Act, "#%,.
Sa!i1n% F1a%ur1s of L1is!a%i#1 5ro#isions 5ro$ibi%in and R1u!a%in :m&!o2m1n% of
C$i!dr1n
". As per the hild Labour 4;rohibition I Regulation6 Act, "#%, FchildG means a person who
has not completed is "$th year of age.
9. The Act prohibits employment of children in "* occupations and +1 processes contained
in ;art A I ) of the &chedule to the Act 4&ection *6.
*. :nder the Act, a Technical Advisory ommittee is constituted to advice for inclusion of
further occupations I processes in the &chedule.
$. The Act regulates the condition of employment in all occupations and processes not
prohibited under the Act 4;art III6.
+. Any person who employs any child in contravention of the provisions of &ection * of the
Act is liable for punishment with imprisonment for a term which shall not be less than
three months but which may e/tend to one year or with fine which shall not be less than
Rs "D,DDD but which may e/tend to Rs 9D,DDD or both 4&ection "$6.
,. The entral and the &tate Covernments enforce the provisions of the Act in their
respective spheres.
:m&!o2m1n% of c$i!dr1n as dom1s%ic s1r#an%s and in d$abas bann1d from 8c%ob1r +((,'
The government has decided to prohibit employment of children as domestic servants or servants
or in dhabas 4roadside eateries6, restaurants, hotels, motels, teashops, resorts, spas or in other
recreational centres. The ban has been imposed under the hild Labour 4;rohibition I
Regulation6 Act, "#%, and will be effective from "Dth 5ctober 9DD,. The (inistry of Labour has
recently issued a notification to this effect giving three3month mandatory notice. The (inistry has
warned that anyone employing children in these categories would be liable to prosecution and
other panel action under the Act.
It may be recalled that the government servants have already been prohibited from employing
children as domestic servants. )y issuing this notification, the Covernment has imposed these
restrictions on everyone.
The decision has been taken on the recommendation of the Technical Advisory ommittee on
hild Labour headed by the 0irector Ceneral, I(R. The ommittee considers the occupations
mentioned in the above notification as ha-ardous for children and has recommended their
inclusion in the occupations which are prohibited for persons below "$ years under the hild
Labour 4;rohibition I Regulation6 Act, "#%,. The ommittee while recommending a ban on
employing children in these occupations had said that these children are sub2ected to physical
violence, psychological traumas and at times even se/ual abuse. It said that invariably such
incidents go unnoticed and unreported as they take place in the close confines of the households
or dhabas or restaurants. It said that these children are made to work for long hours and are
made to undertake various ha-ardous activities severely affecting their health and psyche. The
ommittee has said that the children employed in road3side eateries and highway dhabas were
the most vulnerable lot and were easy prey to se/ and drug abuse as they came in contact with
all kinds of people. The measure is e/pected to go a long way in ameliorating the condition of
hapless working children. The Labour (inistry is also contemplating to strengthen and e/pand its
rehabilitative &cheme of Bational hild Labour ;ro2ect, which already covers 9+D child labour
endemic districts in the country.
0H: SCH:<@L:
5AR0 A
8CC@5A0I8AS
Any occupation connected with 3 4"6 Transport of passengers, goods or mails by railway<
496 inder picking, clearing of an ash pit or building operation in the railway premises<
4*6 .ork in a catering establishment at a railway station, involving the movement of a vendor or
any other employee of the establishment from one platform to another or into or out of a moving
train<
4$6 .ork relating to the construction of a railway station or with any other work where such work is
done in close pro/imity to or between the railway lines<
4+6 A port authority within the limits of any port.
4,6 .ork relating to selling of crackers and fireworks in shops with temporary licences.
416 Abattoirs>slaughter Jouses.
5AR0 B
5R8C:SS:S
4"6 )idi3making.
496 arpet3weaving.
4*6 ement manufacture, including bagging of cement.
4$6 loth printing, dyeing and weaving.
4+6 (anufacture of matches, e/plosives and fire3works.
4,6 (ica3cutting and splitting.
416 &hellac manufacture.
4%6 &oap manufacture.
4#6 Tanning.
4"D6 .ool3cleaning.
4""6 )uilding and construction industry.
4"96 (anufacture of slate pencils 4including packing6.
4"*6 (anufacture of products from agate.
4"$6 (anufacturing processes using to/ic metals and substances, such as, lead, mercury,
manganese, chromium, cadmium, ben-ene, pesticides and asbestos.
4"+6 KJa-ardous processesK as defined in &ec. 9 4cb6 and dangerous operations as defined in
rules made under &ec. %1 of the Factories Act, "#$% 4,* of "#$%6.
4",6 ;rinting as defined in &ec. 94k6 4iv6 of the Factories Act. "#$% 4,* of "#$%6.
4"16 ashew and cashew nut decaling and processing.
4"%6 &oldering processes in electronic industries.
Bond1d Labour S2s%1m (Abo!i%ion) Ac%, -)I,
8bj1c%i#1' The ob2ect of the Act is to provide for the abolition of bonded labour system with a
view to preventing the economic and physical e/ploitation of the weaker &ections of the people
and for matters connected therewith or incidental thereto.
Sc$1m1 of %$1 Ac%
The Act consists of 91 &ections with some of the important &ections listed below!
9 0efinitions
* Act to Jave 5verriding 'ffect
$ Abolition of )onded Labour &ystem
+ Agreement, ustom, 'tc., to be @oid
, Liability to Repay )onded debt to &tand '/tinguished
1 ;roperty of )onded Labourer to be freed from (ortgage, 'tc.
% Freed )onded Labourer Bot to be 'victed from Jomestead, etc.
# reditor not to Accept ;ayment Against '/tinguished 0ebt
"D Authorities .ho may be &pecified for Implementing the ;rovisions of this Act
"" 0uty of 0istrict (agistrate and other officers to ensure credit
"9 0uty of 0istrict (agistrate and 5fficers Authorised by Jim
"* @igilance ommittee
"$ Functions of @igilance ommittee
"+ )urden of ;roof
", ;unishment for 'nforcement of )onded Labour
"1 ;unishment for Advancement of )onded 0ebt
"% ;unishment for '/tracting )onded Labour under the )onded Labour &ystem
"#
;unishment for 5mission or Failure to restore possession of ;roperty to )onded
Labourers
9D Abetment to be an 5ffence
9" 5ffences to be Tried by '/ecutive (agistrates
99 ogni-ance of 5ffences
9* 5ffences by ompanies
9$ ;rotection of Action Taken in Cood Faith
9+ Aurisdiction of ivil ourts )arred
S2s%1m of Bond1d Labour and i%s forms! It is outcome of customary obligations, forced labour,
beggar or indebtedness under which a debtor agrees to render service. In different parts of the
country, it was known by the different names such as Adiyamar, baramasia, basahya, bethu,
bhagela, cherumar, garru3galu hari, harwai, holya, 2ana 2eetha, kamiya, khundit3mundit, kuthia,
lakhari, mun2hi, mat, munish system, nit3ma2door, paleru, paduyal, pannayilal, sagri, san2i,
san2awat, sewak, sewakia, seri, vetti.
W$o is bond1d Labour6 According to the definition given in &ection 94g6 of the Act, bonded
labour means service arising out of loan>debt>advance. It represents the relationship between a
creditor and a debtor wherein the debtor undertakes to mortgage his services or the services of
any of his family members to the creditor for a specified or unspecified period with or without
wages accompanied by denial of choice of alternative avenues of employment, or to deny him
freedom of movements, then the person would normally be covered under the definition of a
bonded labour.
W$om %o a&&roac$ in cas1 of bonda16 The aggrieved person or any person on his behalf
can approach to the 0istrict (agistrate who is chairman of the @igilance ommittee constitute
under the Act and has been entrusted with certain duties and responsibilities for implementing the
provisions of the Act. (atter can also be brought to the notice of the &ub 0ivisional (agistrate of
the area or any other person who is a member of the @igilance ommittee of 0istrict or &ub3
division.
R1!i1f a#ai!ab!1 %o %$1 #ic%im! The bonded labour is to be immediately released from the
bondage. Jis liability to repay bonded debt is deemed to have been e/tinguished. Freed bonded
labour shall not be evicted from his homesteads or other residential premises which he was
occupying as part of consideration for the bonded labour. A rehabilitation grant of Rs. "9D,DDD>3 to
each of the bonded labour is to be granted and assistance for his rehabilitation provided.
51na!%i1s' The offence under the Act is cogni-able and bailable any person who is contravenes
provisions of the act is punishable with imprisonment for a term which may e/tend to three years
and also with a fine which may e/tend to two thousand rupees. ..e.f. ".+.9DDD 4Rs. $DDD>3 from
"#1%, Rs. ,9+D>3 w.e.f. ".9.%, I Rs. "D,DDD>3 w.e.f. ".$.#+6
0$1 :m&!o2m1n% :Hc$an1s (Com&u!sor2 Ao%ifica%ion
of 9acanci1s) Ac%, -)7)
The main purpose of the Act is to provide for the compulsory notification of vacancies to
employment e/changes. The employer is re7uired on a compulsory basis, to notify to the
'mployment '/changes all vacancies other than vacancies in unskilled categories, temporary
vacancies and vacancies proposed to be filled through promotion and tender to the 'mployment
'/changes, return relating to the staff strengths at regular intervals.
The Act e/tends to the whole of India.
Sc$1m1 of %$1 Ac%
There are only "D &ections in total and some of the important &ections are!
&ection 9 0efinitions
&ection * Act not to apply in relation to certain @acancies
&ection $ Botification of @acancies to 'mployment '/changes
&ection + 'mployers to furnish information and returns in prescribed form
&ection , Right of access to records or documents
&ection 1 ;enalties
&ection % ogni-ance of 5ffences
&ection # ;rotection of Action taken in good faith
A&&!ica%ion of %$1 Ac%!
The Act covers the employers in establishments both in public and private sectors. The Act is
applicable to establishments which are engaged in non3agricultural activities and employing 9+ or
more workers. The enforcement of the Act is the responsibility of &tates and :nion Territories.
(ost of the &tates>:nion Territories have set up special enforcement machinery for this purpose.
Ac% no% %o a&&!2 in r1!a%ion %o c1r%ain #acanci1s!
The Act shall apply to the following category of vacancies!
"6 In any employment in agriculture 4including horticulture6 in establishment in private sector
other than employment as agricultural or farm machinery operatives<
96 In any employment in domestic service<
*6 In any employment the total duration of which is less than * months<
$6 In any employment which re7uires unskilled office work<
+6 In any employment related to the staff of ;arliament.
In addition, the Act shall not apply to the following vacancies unless the entral Covernment
otherwise directs through notification in its 5fficial Ca-ette!
"6 @acancies which are proposed to be filled through promotion
96 @acancies which are proposed to filled through absorption of surplus staff of any branch
or department of the same establishment
*6 @acancies which are proposed to be filled through the result of any e/amination
conducted or interview held by, or on recommendation of, any independent agency such
as :nion or &tate ;ublic &ervice ommission and the like.
4) @acancies in an employment which carries a remuneration of less than si/ty rupees in a
month. 4&ection *6.
Ao%ifica%ion of #acanci1s %o :m&!o2m1n% :Hc$an1s!
&ection $ of the Act provides for notification of vacancies to employment e/change. The employer
in every establishment in public sector is re7uired to notify any vacancy before filling it up, to the
prescribed employment e/changes.
The &ection further re7uires an employer in every establishment tin private sector or every
establishment pertaining to any class or category of establishments in private sector to notify to
the prescribed employment e/changes from such date as may be specified in the notification
issued by the appropriate Covernment in the 5fficial Ca-ette.
&ection $4*6 provides that the manner of notification of vacancies and the particulars of
employments having such vacancies should be such as may be prescribed.
&ection $4$6 says that the employer8s obligation is only to notify the vacancy to the employment
e/change. The Act does not impose any obligation on an employer to recruit any person through
employment e/change to fill the vacancy merely because the vacancy has been notified as
re7uired by this Act.
:m&!o2m1n% :Hc$an1s %o w$ic$ #acanci1s ar1 %o b1 no%ifi1d!
Rule * of The 'mployment '/changes 4ompulsory Botification of @acancies6 Rules, "#,D, says
that the vacancies are to be notified either to the entral 'mployment '/change or Local
'mployment '/change, as the case may be.
The entral 'mployment '/change means the 'mployment '/change established by the
Covernment of India, (inistry of Labour and 'mployment and to which the following vacancies
shall be notified!
@acancies in posts of a technical and scientific nature carrying a basic pay of Rs. ",$DD or
more per month occurring in establishments in respect of which the entral Covernment
is the appropriate Covernment under the Acct< and
@acancies which an employer may desire to be circulated to the employment e/changes
outside the &tate or :nion Territory to which the establishment is situated.
The Local 'mployment '/change means the employment e/change 4the entral 'mployment
'/change6 notified in the 5fficial Ca-ette by the &tate Covernment or the Administration or :nion
Territory as having 2urisdiction over the area in which the establishment concerned is situated or
over specified classes or categories of establishments of vacancies.
@acancies of all types other than those which are re7uired to be notified to entral 'mployment
'/change, shall be notified to these local employment e/changes.
Furnis$in of Informa%ion or R1%urns!
&ection + re7uires an employer in every establishment in public sector to furnish, such
information or return as may be prescribed in relation to vacancies that have occurred or are
about to occur in the establishment to such employment e/changes as may be prescribed. In the
case of private sector or every establishment pertaining to any class or category of
establishments in private sector, the appropriate Covernment, by notification in the 5fficial
Ca-ette, may re7uire that from such date as may be prescribed in relation to vacancies that have
occurred or are about to occur in that establishment to such employment e/changes as may be
prescribed and the employer shall thereupon, comply with such re7uisition.
The above return shall be furnished to the 0irector or other authori-ed officer of the 0irectorate
administering employment e/changes in a &tate or :nion Territory.
Ri$% of Acc1ss %o R1cords or <ocum1n%s!
&uch officer of the Covernment as may be prescribed in this behalf, or nay person authori-ed by
him in writing, shall have access to any relevant record or document in the possession of any
employer re7uired to furnish any information or returns under &ection + of this Act. &uch officer is
also empowered to enter at any reasonable time, any premises where he believes that such
record or document to be and inspect and take copies of relevant records or documents or ask
any 7uestion necessary for obtaining information re7uired under that &ection 4&ection ,6.
51na!%i1s (S1c%ion I)
4"6 If any employer fails to notify to the employment e/changes prescribed for the purpose any
vacancy in contravention of sub3&ection 4"6 or sub3&ection 496 of &ection $, he shall be
punishable for the first offence with fine which may e/tend to five hundred rupees and for every
subse7uent offence with fine which may e/tend to one thousand rupees.
496 If any person 3 4a6 re7uired to furnish any information or return 3 4i6 refuses or neglects to
furnish such information or return, or
4ii6 furnishes or causes to be furnished any information or return which he knows to be false, or
4iii6 refuses to answer, or gives a false answer to, any 7uestion necessary for obtaining any
information re7uired to be furnished under &ection +< or
4b6 impedes the right of access to relevant records or documents or the right of entry conferred by
&ection ,, he shall be punishable for the first offence with fine which may e/tend to two hundred
and fifty rupees and for every subse7uent offence with fine which may e/tend to five hundred
rupees.
ConiCanc1 of 8ff1nc1s ? Bo prosecution for an offence under this Act shall be instituted e/cept
by, or with the sanction of, such officer of Covernment as may be prescribed in this behalf or any
person authorised by that officer in writing 4&ection %6.
5ro%1c%ion of ac%ion %ak1n in ood fai%$ ? Bo suit, prosecution or other legal proceedings shall
lie against any person for anything which is in good faith done or intended to be done under this
Act 4&ection #6.
A&&r1n%ic1s Ac%, -),-
The main purpose of the Act is to provide practical training to technically 7ualified persons in
various trades. The ob2ective is promotion of new skilled manpower. The scheme is also e/tended
to engineers and diploma holders.
The Act applies to areas and industries as notified by entral government. R&ection "4$6M.
Sc$1m1 of %$1 Ac%
There are *% &ections in total and " &chedule. This &chedule is about modifications in the
.orkmen8s ompensation Act, "#9* w.r.t its application to apprentices under the Apprentices Act,
"#,".
Obligation of Employr !
'very employer is under obligation to provide the apprentice with the training in his trade
in accordance with the provisions of this Act and the rules made there under.
If the employer is not himself 7ualified in the trade, he has to ensure that a person who
possesses the prescribed 7ualification is placed in charge of the training of the
apprentice.
'very employer has to provide ade7uate instructional staff, possessing such
7ualifications as may be prescribed for imparting practical and theoretical training and
facilities for trade test of apprentices< and
'very employer is under obligation to take apprentices in prescribed ratio of the skilled
workers in his employment in different trades. R&ection ""M.
In every trade, there will be reserved places for scheduled castes and schedules tribes.
R&ection *AM. Ratio of trade apprentices to workers shall be determined by entral
Covernment.
'mployer can engage more number of apprentices than prescribed minimum. R&ection
%4"6M.
The employer has to make arrangements for practical training of apprentice R&ection
#4"6M.
'mployer will pay stipends to apprentices at prescribed rates. If the employees are less
than 9+D, +DW of cost is shared by Covernment. If employer is employing more than 9+D
workers, he has to bear full cost of training.
8b!ia%ions of A&&r1n%ic1s!
'very trade apprentice undergoing apprenticeship training shall have the following obligations,
namely!
To learn his trade conscientiously and diligently and endeavour to 7ualify himself as a
skilled craftsman before the e/piry of the period of training<
To attend practical and instructional classes regularly<
To carry out all lawful orders of his employer and superiors in the establishments< and
To carry out his obligations under the contract of apprenticeship.
In case of graduate or technician apprentice or technician 4vocational6 apprentice, apart from the
aforestated obligations, the Act imposes further obligation to learn his sub2ect in 'ngineering or
Technology or @ocational ourse. 4&ection "96
W$o can b1 an A&&r1n%ic1 3 Apprentice should be of minimum age of "$ years and he should
satisfy the standard of education and physical fitness as prescribed. R&ection *M.
R1s1r#a%ion of %rainin &!ac1s for sc$1du!1d cas%1s!
&ection *A provides that in every designated trade, training places shall be reserved by the
employer for the &cheduled astes and &cheduled Tribes 4as defined in clauses 49$6 and 49+6 of
Article *,, of the onstitution6 and where there is more than one designated trade in an
establishment, such training places shall be reserved on the basis on the total number of
apprentices in all the designated trades in such establishment. The reservation shall be such as
may be prescribed having regard to the population of the &cheduled astes and &cheduled
Tribes in the &tate concerned.
<ura%ion of 0rainin 3 0uration of training period and ratio of apprentices to skilled workers for
different trades has been prescribed in Apprenticeship Rules, "##". 0uration of Apprenticeship
may be from , months to $ years depending on the trade, as prescribed in Rules. ;eriod of
training is determined by Bational ouncil for training in @ocational Trades 4established by
Covernment of India634&ection ,6.
Con%rac% wi%$ A&&r1n%ic1 L Apprentice appointed has to e/ecute a contract of apprenticeship
with employer. The contract has to be registered with Apprenticeship Adviser. If apprentice is
minor, agreement should be signed by his guardian. R&ection $4"6M Apprentice is entitled to casual
leave of "9 days, medical leave of "+ days and e/traordinary leave of "D days in a year.
<a%1 of comm1nc1m1n% of a&&r1n%ic1s$i& %rainin!
The apprenticeship training shall be deemed to have commenced on the date on which the
contract of apprenticeship has been entered into.
R1is%ra%ion!
The employer shall send the contract to the Apprenticeship adviser for registration within
three months of the date on which it was signed 4Rule ,6.
The contract shall be registered by the Apprenticeship Adviser on being satisfied that the
person described as an apprentice in the said contract is 7ualified under this Act.
Registration of contract of apprenticeship under &ection $4$6 is not a necessary
ingredient of definition of apprentice. 4)haskaran v. P&') 4"#%,6 " LLB %,#6.
01rms and condi%ions of con%rac%!
The contract may contain such terms and conditions as may be agreed to by the parties to the
contract. In case, the entral Covernment after consulting the entral Apprenticeship ouncil
makes any rule varying the terms and conditions of apprenticeship training of any category of
apprentices undergoing such training then the terms and conditions of every contract relating to
that category of apprentices and subsisting immediately before the making of such rule shall be
deemed to have been modified accordingly.
Ao#a%ion of con%rac% of a&&r1n%ic1s$i&!
.here an employer is for any reason unable to fulfill his obligations under the contract and with
approval of the Apprenticeship Adviser it is agreed between the employer, the apprentice or his
guardian and any other employer that the apprentice shall be engaged as an apprentice under
the other employer for the une/pired portion of the period of apprenticeship training, the
agreement, on registration with the Apprenticeship Adviser shall be deemed to be the contract of
apprenticeship between the apprentice or his guardian and other employer. &uch contract on and
from the date of such registration shall be terminated with the first employer and no obligation
under that contract shall be enforceable 4&ection +6.
5a2m1n% %o a&&r1n%ic1s!
This is a contractual as well as statutory obligation imposed under &ection "* of the Act that an
employer pays to every apprentice during the period of training such stipend at a rate not less
than the prescribed minimum rate and this rate will be specified in the contract. An employer shall
pay such stipend at such intervals and sub2ect to such conditions as may be prescribed.
Jowever, an apprentice shall not be paid on the basis of piece3work nor he shall take part in any
output bonus or other incentive scheme.
01rmina%ion of con%rac%!
The contract of apprenticeship training shall terminate on the e/piry of the period of
apprenticeship training. 'ither party can make application for termination of contract to the
Apprenticeship Adviser and thereafter send a copy of the same to the other party, who on being
satisfied that the parties have failed to carry out the terms and conditions of the contract and it is
desirable in the interests of the parties or any of them to terminate the contract, shall register the
same. Jowever, the employer shall pay the prescribed amount of compensation to the apprentice
where the contract is terminated for failure on the part of the employer to honour the contract.
.here the contract is terminated for failure on the part of the apprentice, he or his guardian shall
refund the cost of the training to the employer. 4&ection 16
L1a! 5osi%ion of A&&r1n%ic1s " An apprentice is not a workman during apprentice training.
R&ection "%M ;rovisions of labour law like )onus, ;F, '&I.
Act, gratuity, Industrial 0isputes Act etc. are not applicable to him. Jowever, provisions of
Factories Act regarding health, safety and welfare will apply to him. Apprentice is also entitled to
get compensation from employer for employment in2ury. R&ection ",M.
An employer is under no obligation to employ the apprentice after completion of apprenticeship.
R&ection 994"6M. Jowever, in UP State Road Transport Corpn v. UP Parivahan Nigam Shishukh
Berozgar Sangh AIR "##+ & """$ U 4"##+6 9 & " , it was held that other things being e7ual,
a trained apprentice should be given preference over direct recruits. It was also held that he need
not be sponsored by the employment e/change. Age bar may also be rela/ed, to the e/tent of
training period. The concerned institute should maintain a list of persons already trained and in
between trained apprentices, preference should be given to those who are senior. L same view in
UP Rajya Vidyut Parishad v. State of UP 9DDD LLR %,# 4&6.
S%i&1nd &a2ab!1" The minimum rate of stipend payable per month is as follows 3 4a6 'ngineering
graduates 3 Rs ",#1D p.m. for post3institutional training 4b6 &andwich course students for degree
e/amination 3 Rs ",$DD p.m. 4c6 diploma holders 3 Rs ",$DD p.m. for post3institutional training 4d6
&andwich course students for degree e/amination 3 Rs ","$D p.m. 4e6 @ocational certificate
holder 3 Rs ",D#D p.m. Rw.e.f. (ay 9DD"M
In case of $ year training, the stipend is as follows L first year L Rs %9D pm. &econd year L Rs
#$D pm. Third year L Rs ",D#D pm. Fourth year L Rs ",9*D pm. RFrom (ay 9DD"M.
01s% and 5rofici1nc2 c1r%ifica%1 " 5n completion of training, every trade apprentice has to
appear for a test conducted by Bational ouncil. If he passes, he gets a certificate of proficiency.
A&&r1n%ic1s$i& Ad#is1r " Covernment is empowered to appoint Apprenticeship Adviser, 0y
Apprenticeship Adviser etc. to supervise the scheme. @arious powers have been conferred on
them under the Act.
<is&u%1s und1r con%rac% and s1%%!1m1n% %$1r1of!
&ection 9D of the Act provides that if out of the terms and conditions of the contract any dispute
arises, it will be referred to Apprenticeship Adviser for decision. An appeal can be preferred by the
aggrieved party within *D days of the communication of the Adviser8s decision to the
Apprenticeship ouncil and such appeal shall be heard and determined by the ommittee of that
ouncil appointed for the purpose, and such decision of the ommittee shall be final.
Ho!din of 01s% and 3ran% of C1r%ifica%1 and Conc!usion of 0rainin (S1c%ion +-) 3 4"6 'very
trade apprentice who has completed the period of training shall appear for a test to be conducted
by the Bational ouncil to determine his proficiency in the designated trade in which he has
undergone his apprenticeship training.
496 'very trade apprentice who passes the test referred to in sub3&ection 4"6 shall be granted a
certificate of proficiency in the trade by the Bational ouncil.
4*6 The progress in apprenticeship training of every graduate or technician apprentice, technician
4vocational6 apprentice shall be assessed by the employer from time to time.
4$6 'very graduate or technician apprentice or technician 4vocational6 apprentice, who completes
his apprenticeship training to the satisfaction of the concerned Regional )oard, shall be granted a
certificate of proficiency by that )oard.
8ff1r and Acc1&%anc1 of :m&!o2m1n% (S1c%ion ++) ? 4"6 It shall not be obligatory on the part of
the employer to offer any employment to any apprentice who has completed the period of his
apprenticeship training in his establishment, nor shall it be obligatory on the part of the apprentice
to accept an employment under the employer.
496 Botwithstanding anything in sub3&ection 4"6, where there is a condition in a contract of
apprenticeship shall, after the successful completion of the apprenticeship training, serve the
employer, the employer shall, on such completion, be bound to offer suitable employment to the
apprentice, and the apprentice shall be bound to serve the employer in that capacity for such
period and on such remuneration as may be specified in the contract!
;rovided that where such period or remuneration is not, in the opinion of the Apprenticeship
Adviser, reasonable, he may revise such period or remuneration so as to make it reasonable, and
the period or remuneration so revised shall be deemed to be the period or remuneration agreed
to between the apprentice and the employer.
8ff1nc1s And 51na!%i1s (S1c%ion *() ? 4"6 If any employer 3 4a6 engages as an apprentice a
person who is not 7ualified for being so engaged, or
4b6 fails to carry out the terms and conditions of a contract of apprenticeship, or
4c6 contravenes the provisions of this Act relating to the number of apprentices which he is
re7uired to engage under those provisions, he shall be punishable with imprisonment for a term
which may e/tend to si/ months or with fine or with both.
496 If any employer or any other person 3 4a6 re7uired to furnish any information or return 3 4i6
refuses or neglects to furnish such information or return, or
4ii6 furnishes or causes to be furnished any information or return which is false and which he
either knows or believes to be false or does not believe to be true, or
4iii6 refuses to answer, or gives a false answer to any 7uestion necessary for obtaining any
information re7uired to be furnished by him, or
4b6 refuses or willfully neglects to afford the entral or the &tate Apprenticeship Adviser or such
other person, not below the rank of an Assistant Apprenticeship Adviser, as may be authorised by
the entral or the &tate Apprenticeship Adviser in writing in this behalf any reasonable facility for
making any entry, inspection, e/amination or in7uiry authorised by or under this Act, or
4c6 re7uires an apprentice to work overtime without the approval of the Apprenticeship Adviser, or
4d6 employs an apprentice on any work which is not connected with his training, or
4e6 makes payment to an apprentice on the basis of piecework, or
4f6 re7uires an apprentice to take part in any output bonus or incentive scheme, he shall be
puni#$abl %it$ impri#onmnt for a trm %$ic$ may &tnd to #i& mont$# or %it$ fin or
%it$ bot$.
51na!%2 w$1r1 no s&1cific &1na!%2 is s&1cifi1d (S1c%ion *-) ? If any employer or any other
person contravenes any provision of this Act for which no punishment is provided in &ection *D,
he shall be punishable with fine which shall not be less than one thousand rupees but may e/tend
to three thousand rupees.
8ff1nc1s b2 Com&ani1s (S1c%ion *+) ? 4"6 If the person committing an offence under this Act is
a company, every person who, at the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of business of the company, as well as the company,
shall be deemed to be guilty of the offence and shall be liable to be proceeded against and
punished accordingly!
;rovided that nothing contained in this sub3&ection shall render any such person liable to such
punishment provided in this Act if he proves that the offence was committed without his
knowledge or that he e/ercised all due diligence to prevent the commission of such offence.
496 Botwithstanding anything contained in sub3&ection 4"6, where an offence under this Act has
been committed by a company and it is proved that the offence has been committed with the
consent or connivance of, or is attributable to any negligence on the part of, any director,
manager, secretary or other officer of the company, such director, manager, secretary, or other
officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
'/planation! For the purposes of this &ection, 3 4a6 KcompanyK means a body corporate and
includes a firm or other association of individuals< and
4b6 KdirectorK in relation to a firm means a partner in the firm.
ConiCanc1 of 8ff1nc1s (S1c%ion **) ? Bo court shall take cogni-ance of any offence under this
Act or the rules made there under e/cept on a complaint thereof in writing made by the
Apprenticeship Adviser or the officer of the rank of 0eputy Apprenticeship Adviser and above
within si/ months from the date on which the offence is alleged to have been committed.
:m&!o211s 5ro#id1n% Fund and Fisc1!!an1ous
5ro#isions Ac%, -)7+
8bj1c%i#1s
X To make provisions for the future of the industrial worker after he retires or for his
dependents in the case of his early death.
X ompulsory ;rovident Fund
X Family ;ension
X 0eposit linked insurance
Sco&1 and co#1ra1
X Application to factories and establishments employing 9D or more persons.
X an be made applicable by central government to establishments employing less than 9D
persons or if the ma2ority of employees agree.
X '/cludes establishments employing +D or more persons or 9D or more persons but less
than +D persons, until the e/piry of three years in the case of the former, and five years in
the case of the former, and five years in the case of the latter, from the date of setting up
of establishment.
X Applicable to all persons who are employed directly or indirectly through contractors in
any kind of work.
:!iibi!i%2
X 'mployees drawing pay not e/ceeding Rs. ,,+DD>3 per month.
Sc$1m1s fram1d und1r %$1 Ac%
The 'mployees8 ;rovident Funds &chemes, "#+9<
The 'mployees8 ;ension &cheme, "##+ and
The 'mployees8 0eposit Linked Insurance &cheme, "#1,
B1n1fi%s
X Apart from terminal disbursal of non3refundable withdrawals for Life Insurance ;olicies
X Jouse building
X (edical treatment
X (arriage
X Jigher education
X Family pension
X Retirement3cum3withdrawal benefits
X 0eposit linked insurance Amount e7ual to the average balance in ;rovident Fund of
deceased sub2ect to a ma/imum of Rs. ,+,DDD> 3
As per ;reamble to the Act, the ';F Act is enacted to provide for the institution of provident
funds, pension fund and deposit lined insurance fund for employees in factories and other
establishments. The 'mployees8 ;rovident Funds and (iscellaneous ;rovisions Act is a social
security legislation to provide for provident fund, family pension and insurance to employees.
'mployee has to pay contribution towards the fund. 'mployer also pays e7ual contribution. The
employee gets a lump sum amount when he retires, which will be useful to him after retirement.
The Act covers three schemes i.e. ;F 4;rovident Fund scheme6, F;F 4Family ;ension Fund
scheme6 and '0LI 4'mployees 0eposit Linked Insurance scheme6.
The ';F Act contains basic provisions in respect of applicability, eligibility, damages, appeals,
recovery etc. The three schemes formed by entral Covernment under the Act make provisions
in respect of those schemes.
A&&!icabi!i%2 of %$1 Ac% ? The Act applies to 4a6 'very establishment which is a factory engaged
in industry specified in &chedule I to the Act and in which 9D or more persons are employed and
4b6 any other establishment or class of establishment employing 9D or more persons which may
be specified by entral government by notification in official ga-ette. 3 3 entral Covernment can
also apply provisions of the Act to any establishment even if it employs less than 9D persons.
R&ection "4*6M.
In RPFC v. T S ariharan "#1" Lab I #+" 4&6, it was held that temporary workers should not
be counted to decide whether the Act would apply.
'ven if the provisions of ;F Act are not applicable in a particular establishment, if employer and
ma2ority of employees agree, the entral ;rovident Fund ommissioner can apply the provisions
to that establishment by issuing a notification in 5fficial Ca-ette. R&ection "4$6M. 5nce the
provisions of Act become applicable, it continues to be applicable even if number of employees
fall below 9D. R&ection "4+6M.
Co'rag of Act ! The Act has been e/tended to S Factories S (ines other than coal mines S
Jotels and restaurants S ;lantation of tea, coffee, rubber RTea factories in Assam have been
e/cluded vide para "4*64a6 of ';F &chemeM S Trading and commercial establishments engaged in
purchase, sale or storage of goods S 'stablishments of e/porters, importers, advertisers, stock
e/changes S anteens S 'stablishments of Attorneys, A, I.As, 'ngineers and ontractors,
architects and medical practitioners S Jospitals S Travel agencies S )anks doing business only in
one &tate S Ceneral Insurance S '/pert services S lubs and societies rendering services to their
members S Agricultural farms S Financial 'stablishments other than banks S )uilding and
construction Industry S ;oultry farming S :niversity, college or schools. 3 3 The Act has been
e/tended w.e.f. ".$.9DD" vide notification dated 99.*.9DD", to S courier services S Aircraft or
airlines other than aircraft or airline owned or controlled by Covernment S 'stablishment engaged
in rendering cleaning and sweeping services.
5nce an establishment is covered under ;F, all its departments and branches wherever they are
situated are also covered.
8%$1r Aon?Fac%or2 :s%ab!is$m1n%s Co#1r1d 3 )esides factories, other establishments
employing 9D or more persons can be covered under the Act u>s "4*64b6. @arious notifications
have been issued e/tending the provisions of ;F Act to non3factory establishments. &ome ma2or
among them are 3 plantation, mines, coffee, hotels and restaurants, cinema and theatres, trading
and commercial establishments, laundry, canteens, establishments of attorneys>A>
I.A>engineers> architects>medical practitioners, hospitals, financial establishments 4other than
IFI, :TI, I0)I, &F6, building and construction industry, poultry, university, college, schools,
scientific institutions etc.
0ransi%or2 5ro#isions w$1n Ac% is 1H%1nd1d ? It is possible that when ;F Act is e/tended to
certain establishment, some ;F scheme may be already in e/istence. &uch scheme will continue
and the balance amount in such scheme to credit of the employee will be transferred to the
;rovident Fund under statutory scheme of ;F Act. R&ection "+M.
E#tabli#$mnt to includ all dpartmnt# and branc$# ? Where an establishment consists of
different departments or has branches, whether situate in the same place or in different places, all
such departments or branches shall be treated as parts of the same establishment. R&ection 9AM.
3 3 Thus, if factory is covered, the head office and branches will also be covered under the Act.
Act not applicabl to crtain #tabli#$mnt# 3 As per &ection ",4"6, the ;F Act does not apply
to 4a6 any establishment registered under ooperative &ocieties Act or &tate law relating to
cooperative societies, employing less than +D persons and working without paid of power 4b6 to
any establishment belonging to or under ontrol of entral Covernment or a &tate Covernment
and whose employees are entitled to benefit of contributory provident fund or old age pension. 4c6
to any establishment set up under any entral or &tate Act and whose employees are entitled to
benefit of contributory provident fund or old age pension..
($r PF Act i# not applicabl ! The ;F Act is not applicable to certain establishmentsNS
Factories or establishments employing less than 9D employees. Jowever, once Act becomes
applicable, it continues to apply even if subse7uently, the number is lower than 9D S )anks doing
business in more than one &tate S oal mines S :nits established under ooperative &ocieties
Act employing less than +D workers and working without aid of power S 5ther establishments
belonging to or under control of entral Covernment or &tate Covernments and whose
employees are entitled to benefits of contributory provident fund or pension. S Tea factories in
Assam S
'/emption granted by entral Covernment by a special notification.
"dministration of the Fund ? Bo%$ 1m&!o21r and 1m&!o211 $a#1 %o &a2 con%ribu%ion a%
&r1scrib1d ra%1s. 0$1s1 amoun%s ar1 cr1di%1d %o a fund. 0$1 fund #1s%s in and is
adminis%1r1d b2 C1n%ra! Board. DS1c%ion 7(-A)E.
Employ# co'rd undr t$ #c$m 3 As per &ection 94f6, FemployeeG means any person
who is employed for wages in any kind of work, manual or otherwise, in or in connection with the
work of an establishment, and who gets his wages directly or indirectly from the employer. It
includes any person 3 4i6 employed by or through a contractor in or in connection with the work of
the establishment 4ii6 engaged as an apprentice, not being an apprentice engaged under the
Apprentices Act, "#," or under the standing orders of the establishment.
Thus, 4a6 ;ersons employed through contractor in connection with work of establishment are
covered 4b6 Apprentices employed under Apprentices Act or under standing orders of
establishment are e/cluded, i.e. they are not employees. RThe model standing orders merely state
that an Qapprentice8 is a learner who is paid an allowance during the period of his trainingM.
Non"Eligibl mploy# undr PF ! S 'mployee whose Qpay8 is more than Rs. ,,+DD per month
are not eligible. 4It may be noted that limit of pay was Rs +,DDD upto *".+.9DD" and Rs. *,+DD
upto *Dth &ept., #$6 S Apprentices as per certified standing orders or under Apprentices Act S
asual employees. Jowever, employees employed through contractors have also to be covered
under ;F.
Employ to bcom mmbr of Fund immdiatly on )oining # 'very employee employed in
or in connection with work of a factory or establishment to which the Act applies is entitled and
re7uired to become member of ;rovident Fund, unless he is an e/cluded employee. Rpara 9,4"6
of ';F &chemeM. An employee who is drawing Qpay8 above prescribed limit 4presently Rs ,,+DD6
can become member with permission of Assistant ;F ommissioner, if he and his employer
agree. Rpara 9,4,6 of ';F &chemeM.
Contribution by mployr and mploy 3 As per &ection 94c6 FcontributionG means a
contribution payable in respect of a member under a &cheme or the contribution payable in
respect of an employee to whom the Insurance &cheme applies.
As per &ection ,, contribution shall be paid by employer = "DW of basic wages plus dearness
allowance plus retaining allowance. This amount is defined as Qpay8 as per e/planation to para
94f64ii6 of ';F &cheme. '7ual contribution is payable by employee also. This contribution can be
increased to "9W by entral Covernment and in fact, has been increased to "9W w.e.f
&eptember 99, "##1.
A person who is already a member continues to be a Qmember8 even if his Qpay8 e/ceeds Rs
,,+DD. Jowever, the contribution is limited to Rs ,,+DD only. Rpara 9,A496 of ';F &chemeM.
RPFC i# liabl undr Con#umr Protction Act 3 The Regional ;rovident Fund ommissioner
is providing service under the Act and hence he is liable under onsumer ;rotection Act. 3 RPFC
v. Shiv $umar %oshi 4"##,6 $ TA %D+ U "##, LLR ,$" 4B0R + member bench6 3 confirmed in
RPFC v. Shiv $umar %oshi "### AIR &. $$+, U "###416 &AL' $+* U 9DDD LLR 9"1 U AIR
9DDD & **" U ## omp as *$1 U 49DDD6 LA3)L &upp 9, U 9$ &L $, 4&6.
Employ# Pro'idnt Fund Sc$m 3 This is the main scheme under the Act. )oth employer
and employee have to pay contribution to ;rovident Fund. The employer has to deduct
contribution of employee from the salary of employee and has to pay both employees8
contribution as well as employer8s contribution by a challan in prescribed form. The amount has to
be paid in approved bank.
:m&!o211 Can 5a2 Hi$1r Con%ribu%ion 3 'mployee has to contribute "9>"DW of his HpayH as
contribution. The employee can voluntarily pay higher contribution above the statutory rate.
Jowever, employer does not have to match the voluntary contribution, over and above the
statutory rate. Rpara 9,496 of ';F &chemeM.
Contribution payabl undr PF Sc$m ! The ;rincipal 'mployer is liable to pay contribution of
his own employees as well as employees employed through contractor. ;rincipal 'mployer can
recover from contractor the amount paid by him on behalf of contractor. The contribution is "9W
of Qpay8 i.e. basic wages, plus dearness allowance, cash value of food concession and retaining
allowance. ontribution of both employer and employee is same i.e. "9W each. Rpara 9# of ';F
&chemeM.
'mployer has to pay his contribution to ';F. Je cannot deduct his contribution from wages of the
employee. R;ara *" of ';F &chemeM. Jowever, he has to deduct employee8s share from his
salary and pay the same in ';F scheme. This deduction can be only from the wages pertaining
to period for which contribution is paid. Jowever, if there is accidental omission, the amount can
be recovered later. Amount deducted from salary of employees is held in trust by the employer or
contractor. R;ara *9 of ';F &chemeM.
5ut of employer8s contribution of "9>"DW, the 'mployer8s contribution of %.**W will be diverted to
'mployees8 ;ension &cheme. The balance will be retained in the ';F scheme. Thus, on
retirement, the employee will get his full share plus the balance of 'mployer8s share retained to
his credit in ';F account. RThis diversion is only w.e.f. ",th Bovember, #+. 'arlier 'mployer8s
contribution to their credit will continue to remain to their creditM.
Lo%r contribution in crtain ca## ! The employerHs and employee8s contribution is "9W
each. This is applicable to many of industries and establishments. Jowever, this contribution is
not applicable to 3 S any establishment employing less than 9D persons S any establishment
registered with )oard for Industrial and Financial Reconstruction 4)IFR6 as a sick company 3 the
lower rate of contribution continues till its net worth is positive S any other establishment which
has accumulated loss e7ual to or more than its assets and has also suffered cash loss in last two
years. S Aute industry S )eedi industry S )rick industry S oir industry other than the spinning
sector S Cuar gum factories. In these cases, the contribution is "DW.
Intr#t on account L ;F ommissioner shall maintain account of each member of ';F
scheme. R;ara +# of &chemeM. Interest is credited to the account of employee. The Interest is
calculated on monthly running balance basis. Amount standing to credit at end of the month is
considered for calculation of interest for the following month. The interest rate is declared every
year by entral Covernment in consultation with entral )oard of Trustees of ;rovident Fund.
R;ara ,D of ';F &chemeM.
:5F for :m&!o211s
For A1w :n%ran%s!
:nro!m1n%!
An employee is eligible for membership from the day he 2oins the covered establishment.
If the employee8s emoluments e/ceed Rs. ,,+DD>3 per month, he has the option to 2oin the
&cheme4s6 with the consent of employer.
0eclare previous employment details, if any, in Form Bo. "" to the employer.
5n becoming a member of the &chemes file details in Form Bo. 9 4 family particulars>
nominations6 through the employer.
Rate of contribution payable by a member shall be = "9W of his emoluments.
A member can contribute statutorily over and above the prescribed rate.
For :His%in F1mb1rs!
:nro!m1n%!
Any change in the family status, such as, 3
(arriage of the member.
Additions > deletion in the family.
Legal adoption of the children.
hange of nominee, is to be filed in Form Bo. 9 through the employer.
In the event the member is holding a &cheme ertificate 4under ';&, #+6, he should
surrender the same to the concerned ';F5 office, through his employer.
A member is entitled to various benefits I facilities such as withdrawals, advances,
pensions, death insurance etc.
:m&!o211sJ 51nsion Sc$1m1 ? This scheme has been introduced w.e.f. ",th Bovember, #+.
The &cheme is applicable to all subscribers of 'mployers8 ;rovident Fund. It is also compulsory
to persons who were subscribers as on ",."".#+.
Con%ribu%ion 3 The employer8s contribution of %.**W will be diverted to the fund of ;ension
&cheme. 'mployee does not have to make any contribution. 'mployer8s contribution is "9W>
"DW. In such cases, %.**W is diverted to ;ension scheme and balance ".,1W>*.,1W as the case
may be, will be in credit of employee8s name in ;rovident Fund account. The %.**W is on
ma/imum salary of Rs. ,,+DD. If some employers are paying contribution on salary in e/cess of
Rs. ,,+DD, the e/cess contribution will be credited to ;rovident Fund account and not to ;ension
scheme.
Bo separate administration charges or inspection charges are payable, as these are already paid
along with ;rovident Fund contribution.
B1n1fi%s @nd1r 0$1 Sc$1m1 3 (embers will get pension on superannuation or retirement from
service and upon disablement during employment. Family pension will be available to
widow>widower for life or till he>she remarries. In addition, children will be entitled to pension, upto
9+ years of their age. In case of orphans, pension at enhanced rate is available upon death of
widow>widower or ceasing payment of widow pension. )enefit of pension to children or orphan is
only restricted for two children>orphans.
If the person is unmarried or has no family, pension is available to nominee for a specified period.
Commu%a%ion of 51nsion 3 The member can commute **.**W of the pension, so as to receive
hundred times the monthly pension so commuted as commuted value of pension. )alance will be
paid on monthly basis.
:m&!o211s <1&osi% Link1d Insuranc1 Sc$1m1 ? The purpose of the scheme is to provide life
insurance benefits to employees who are already covered under ;F>F;F. The employer has pay
contribution e7ual to D.+DW of the total wages of employees In addition, administrative charges of
D."W of total wages. RBotification Bo. A5 +D*4'6 dated 9%313"#1, issued u>s ,496 of ;F ActM.
The employee does not contribute any amount to the scheme. The salary limit for coverage of
employees is same as that of ;rovident Fund.
'/emption from the scheme can be obtained from R;F if LI Croup Cratuity scheme is
adopted by employer. If e/emption is granted, only inspection charges = D.DD+W are payable to
;F authorities.
Bnfit to nomin of mploy ! If an employee dies during employment, his nominee or
family member gets an amount e7ual to average balance in the ;rovident Fund Account of the
deceased employee during last "9 months. If such balance is more than Rs. *+,DDD, the
insurance amount payable is Rs. *+,DDD plus 9+W of the amount in e/cess of Rs. *+,DDD, sub2ect
to overall limit of Rs. ,D,DDD. If the employees are covered under another life insurance scheme
whose benefits are better than this scheme, an e/emption from this scheme can be obtained.
RIncreased to *+,DDD and ,D,DDD w.e.f. "*.,.9DDDM
The entral Covernment with the motive of providing additional &ocial &ecurity in the form of Life
Insurance to the family of the deceased member of the ;rovident Fund, introduced the
'mployees 0eposit Linked Insurance &cheme with effect from "3%3"#1, as provided under
&ection ,46 of the 'mployeesH ;rovident Fund I (; Act, "#+9. The benefit under the &cheme is
so devised that it acts as an incentive to the members to save more in their ;rovident Fund
Account. As the name of the &cheme says, the benefit is linked to the amount of accumulation in
the ;rovident Fund Account of the member.
A&&!icabi!i%2!
The &cheme applies to all the establishments to which the 'mployeesH ;rovident Fund &cheme
applies.
F1mb1rs$i&!
All the members of the 'mployeesH ;rovident Fund &cheme are covered as members of the
'mployeesH 0eposit Linked Insurance &cheme also.
Con%ribu%ion!
:nder this &cheme, the members do not contribute any amount as contribution. Jowever, the
employer pays an amount e7ual to D.+W of the total wages paid to the members as contribution.
Adminis%ra%i#1 C$ar1s!
As regards Administrative charges, the employer is re7uired to pay an amount e7ual to D.D"W of
the wages sub2ect to a minimum of Rs. 9>3 per month.
:H1m&%ion! 4&ection "149A6 of the Act and ;ara 9% of 'mployeesH 0eposit Linked Insurance
&cheme, "#1,6
The provisions are available as per &ection "149A6 of the Act and para 9%4"6 and 9%4$6 of the
'mployeesH 0eposit Linked Insurance &cheme , "#1, for grant of e/emption to an establishment
or to an employee or to a class of employees as the case may be, from the operation of all or any
of the provisions of the &cheme, where the Life Assurance benefit of the &cheme in the
establishment is more beneficial than the benefits provided under the statutory &cheme.
Ins&1c%ion C$ar1s!
An employer of an establishment e/empted from the provisions of the 'mployeesH 0eposit Linked
Insurance &cheme is re7uired to pay inspection charges at the rate of D.DD+W sub2ect to a
minimum of Re.">3 per month.
Assuranc1 B1n1fi%!
The benefit provided under the 'mployeesH 0eposit Linked Insurance &cheme is called
Assurance )enefit. 5n the death of the member while in service, the nominee or any other
person entitled to receive the ;rovident Fund benefits will, in addition to the ;rovident Fund,
receive the Assurance )enefit under 'mployeesH 0eposit Linked Insurance &cheme.
Sca!1 of Assuranc1 B1n1fi%!
From "3$3#* onwards the amount of Assurance )enefit payable is an amount e7ual to the
average balance in the amount of deceased in the Fund during the preceding "9 months or
during the period of his membership whichever is less, e/cept where the average balance
e/ceeds Rs. 9+,DDD>3 amount payable shall be Rs. 9+,DDD>3 plus 9+W of the amount in e/cess of
Rs.9+,DDD>3 sub2ect to a ceiling of Rs. ,+,DDD>3. The Form prescribed for claiming the Assurance
)enefits under the 'mployeesH 0eposit Linked Insurance &cheme, "#1,, is Form +4IF6.
W$a% ar1 %$1 &1riodica! r1%urns %o b1 s1n% b2 an 1m&!o21r %o %$1 5ro#id1n% Fund 8ffic16
The employer of an un3e/empted establishment has to forward the following returns. These
returns will include details re7uired under the three schemes namely, 'mployees ;rovident Fund
&cheme, "#+9, 'mployee 0eposit Linked Insurance &cheme,"#1, and 'mployee ;ension
&cheme, "##+.
a) Form?)(R1#is1d)'
The details of employees enrolled as members of 'mployeesH ;rovident Fund&H+9, 'mployeesH
0eposit Linked InsuranceH1, I 'mployeesH ;ension &chemeH#+ on coverage of the
establishment3 This is to be submitted immediately after coverage, within "+ days of coverage.
b) Form?-+A'
The details of the contributions recovered form the members I paid along with details of
employersH contribution I administrative charges3 This is to be submitted monthly by 9+th of
following month.
c) Form?7'
The details of the employees enrolled newly to the ;rovident Fund3 To be submitted along with
Form3"9A every month within "+ days of the following month.
d) Form?-('
The details of the employees leaving service during the month3 To be submitted along with form3
"9A.
1) C$a!!ans'
The triplicate copy of challans in token of having remitted the ;rovident Fund dues in the bank3 to
be submitted along with form3"9A every month.
f) Form?+(R1#is1d)'
Bomination form3 To be submitted along with form3+>#.
) Form?*A'
The details of wages I contributions in respect of each member, to be prepared financial year
wise3 To be submitted to the ;rovident Fund office by *Dth of April every year.
$) Form?,A'
Yearly consolidated statement of contributions3 To be forwarded yearly along with form3*A. It
should be ensured that all the form3*A are entered in form3,A, irrespective of whether the form3
*A was forwarded for the broken period and the total dues as per the form3"9A for the whole year
agrees with the total of form3,A within *Dth April.
i) Form?7A'
Return of ownership of the establishment3 To be forwarded immediately after coverage I
whenever there is a change in the ownership, it has to be intimated with in "+ days of change.
j) S&1cim1n sina%ur1'
&pecimen signature of the officer>officers who are authori-ed to sign the returns>documents
relating to ;rovident Fund forwarded immediately after coverage I whenever there is a change in
authori-ed officer.
0$1 :m&!o211s S%a%1 Insuranc1 Ac% (:SI Ac%), -).B
The '&I Act has been passed to provide for certain benefits to employees in case of sickness,
maternity and employment in2ury and to make provisions for related matters. As the name
suggests, it is basically an Qinsurance8 scheme i.e. employee gets benefits if he is sick or disabled.
'&I 3 'mployees &tate Insurance orporation 4'&I6 has been formed to supervise the scheme
under &ection * of the Act. The orporation supervises and controls the '&I scheme.
Ao <ismissa! or 5unis$m1n% <urin 51riod of Sickn1ss 3 &ection 1* of the Act provides that
no employer shall dismiss, discharge or reduce or otherwise punish an employee during the
period employee is in receipt of sickness benefit or maternity benefit. Je also cannot dismiss,
discharge or otherwise punish employee when he is in receipt of disablement benefit or is under
medical treatment or is absent from work due to sickness.
This gives protection to employee when he is in receipt of sickness benefit or maternity benefit.
'mployer cannot take disciplinary action against employee in such cases. This provision is
grossly misused by employees.
Jowever, in Bu&kingham ' Carnati& Co v. Venkatayya 3 AIR "#,$ & "919 U "#,*416 FLR *$* U
4"#,$6 $ &R 9,+ U 4"#,*6 9 LLA ,*% U 9+ FAR 9+ 4&6, it was rightly held that this provision 4of
&ection 1*6 is applicable only in case of punitive action for all kinds of misconduct during which
employee has received sickness benefits. This protection is not applicable in case of
abandonment of employment or when termination is automatic as per contract. L followed in
Rajveer Singh v. %udge "##, LLR ," 4Ra2 J6, where it was hold that provisions of &ection 1*
are not applicable when termination of an employee is automatic.
Applicability of ESI Sc$m " The scheme is applicable to all factories. R&ection "4$6M. The
Appropriate Covernment can also make it applicable to any other industrial, commercial,
agricultural or other establishments, by issuing notification and giving , month notice. R&ection
"4+6M.
Thus, '&I Act can be made applicable to Qshops8 also. Jowever, since Covernment has to provide
for hospitals and medical facilities, the Act can be made applicable to different parts of &tate at
different dates. Thus, if a factory is at a place where '&I is unable to provide medical facilities,
'&I Act may not be made applicable to that area. Covernment can e/empt a factory or
establishment or persons or class of persons from provisions of '&I Act, if the employees are
getting better medical facilities> Re.g. if Covernment is convinced that the factory itself is providing
very good medical facilities e.g. like TI&5M.
R1iona! 8ffic1s " Branc$ 8ffic1s 31% Co#1r1d 3 Regional offices of a factory, which have their
connection to the factory and where the ;rincipal 'mployer has control over the regional offices,
the regional offices will be covered under (S)C ! ydera*ad "s*estos Cement Produ&ts v. (S)C 3
AIR "#1% & *+, U 4"#1%6 9 &R *$+ U 4"#1%6 " & "#$. If head office is covered under '&I,
branch offices are also covered when branch and principal office are inter3dependent and there is
unity of relationship. 3 Transport Corporation of )ndia v. (S)C "###416 &AL' ,* U 9DDD LLR ""*
U %* FLR #1D U "### AIR &. $*$D U AIR 9DDD & 9*% 4& * member bench6.
8u%sid1 a1nci1s can b1 co#1r1d 3 In P+ Pate, v. U-) 4"#%,6 " & *9 U AR "#%1 & $$1 U
"#%+ II LR *99 4&6, workers were given work of making HbidisH as home. Right of re2ection of
bidis was with employer. It was held that test of control and supervision lies in the right of
re2ection. It was held that employees working outside can be covered under '&I, if there is
master servant relationship.
*finition of +factory, a# pr ESI Act ! The QFactory8 means any premises where manufacturing
process is carried out. If manufacture is without aid of power, the Act is applicable if persons
employed are at least 9D. If manufacture is with aid of power, the Act applies if persons employed
are at least "D. R&ection 94"96M. 3 3 Jowever, Qmines8 have been e/cluded. 3 3 Q(anufacturing
process8 has same meaning as defined under Factories Act. R&ection 94"$AA6M.
5ne a factory or establishment is covered, it continues to be covered even if number of
employees reduce. R&ection "4,6M
Cons%ruc%ion Work1rs Ao% Co#1r1d L onstruction workers employed in construction activities
are not covered under '&I. L '&I circular Bo. ;3"94""63"">91>## Ins.I@ dated "$3,3"###. 3 3
Jowever, if administrative office employs 9D or more eligible employees, that establishment and
employees working in administrative office will be covered.
Employr undr ESI Act # Q;rincipal 'mployer8 means S owner or occupier of factory S Jead of
department in case of Covernment department and S ;erson responsible for supervision and
control, in case of any other establishment. R&ection 94"16M. 3 3 'mployees working though
contractor are also covered. Qontractor8 is termed as QImmediate 'mployer8. QImmediate
employer8 means a person who has undertaken the e/ecution, on the premises of factory or
establishment to which this Act applies. Je may do on his own or under the supervision of
;rincipal 'mployer. The work should be part of work of factory or establishment of principal
employer or is preliminary or incidental to the work of factory or establishment. R&ection 94"*6M.
;rimary liability of '&I contribution is of ;rincipal 'mployer. R&ection $D4"6M. Je can recover the
contribution paid by him from the Qimmediate employer8 i.e. contractor. R&ection $"M.
Employ undr ESI Act ! Q'mployee8 means any person employed for wages in or in
connection with work of a factory or establishment to which the '&I Act applies. 'arlier
employees drawing wages upto Rs. ,,+DD per month were covered under the '&I Act scheme.
R&ection 94#6M. Jowever, w.e.f "
st
April 9DD$, this wage ceiling has been increased to Rs. 1,+DD
per month.
'mployees include S persons employed through contractor S Apprentices other than those
covered under QApprentices Act8 S ;ersons employed in administration office, department or
branch for purchase or sale of products. S asual workers engaged in work incidental to or
connected with work of factory or establishment S 'mployees working at head office when factory
is located at different place S anteen staff, watch and ward staff are employees S &taff in hospital
attached to factory are employees. 3 3 (embers of Indian Baval, (ilitary or Air Forces are
e/cluded.
Fo!!owin ar1 no% :m&!o211s 3 S ;ersons drawing wages over Rs. 1,+DD per month S member
of Army, Bavy or Air Force. S ;artners of firm are not employees even if they are drawing wages 3
R./ (S)C v. Ramanuja +at&h )ndustry AIR "#%+ & 91% U "#%+4"6 & 9"% U "##%4,6 &AL'
*% S ;ersons employed in Covernment establishments. S construction workers engaged in raising
additional building subse7uent to initial set up of factory.
Contribution to ESIC Fund " )oth employee and employer have to make contribution to '&I.
The employer has to deduct contribution from wages of employee and pay to '&I both the
employer8s contribution as well as employees8 contribution. R&ection *#4"6M.
The contribution is payable for Qwage period8 i.e. the period in respect of which wages are payable
to employee. R&ection *#496M. Bormally, Qwage period8 is a month. The employee8s contribution is
".1+W of wages. It should be rounded off to ne/t + paise. 'mployees contribution is not payable
when daily wages are below Rs "+>3.
'mployer8s contribution is $.1+W of total wage bill of all employees in respect of every wage
period. Thus, it is not necessary to calculate employerHs contribution separately for each
employee. $.1+W of gross wages should be calculated and rounded off to ne/t + paise.
'mployees drawing wages lower than Rs 9+ per day do not have to pay employeeHs share. The
contribution has to be paid within 9" days from close of the month. It is payable by a challan in
authorised bank. 3 3 If the contribution is not paid in time, interest = "9W is payable. R&ection
*#4+64a6M.
In addition, '&I authorities can impose Qdamages8 varying between +W to 9+W of arrears of
contribution u>s %+).
'mployer cannot deduct employer8s contribution from the salary of employee. R&ection $D4*6M.
Liabi!i%2 of 5rinci&a! :m&!o21r L In case of employees of contractor, liability is of ;rincipal
'mployer. In Britannia )ndustries v. (S)C 49DD"6 #% FAR +9D 4(ad J6, it was held that ;rincipal
'mployer will be liable to penalty and damages also if contribution is not paid on due date. L
same view in Padmini Produ&ts v. (S)C 9DDD496 Par LA *,# 4Parn J6.
(ag for purpo# of ESI Act " Q.ages8 means all remuneration paid or payable in cash to
employee according to terms of contract of employment and includes any payment made to an
employee in respect of period of authorised leave, lock3out, lay3off, strike which is not illegal and
other additional remuneration paid at interval not e/ceeding two months. It does not include S
contribution paid by employer to any pension fund or provident fund S Travelling allowance S
Reimbursement of e/penses made by nature of employment of the employee S gratuity. R&ection
94996M.
Thus, wages include basic pay, dearness allowance, city compensatory allowance, payment of
day of rest, overtime wages, house rent allowance, incentive allowance, attendance bonus, meal
allowance and incentive bonus. Jowever, wages do not include annual bonus, unilateral rewards
scheme 0inam6, e1 gratia payments made every 7uarter or every year travelling allowance,
retrenchment compensation, encashment of leave and gratuity.
Contribution priod and Bnfit priod " ontribution period is 4a6 "st &eptember to *"st
(arch 4*6 "st April to *Dth &eptember. The corresponding benefit period is 4a6 following "st Auly
to *"st 0ecember 4*6 following "st Aanuary to *Dth Aune. Thus, Qbenefit period8 starts three
months after the Qcontribution period8 is over. The relevance of this definition is that sickness
benefit and maternity benefit is available only during Qbenefit period8. Thus, an employee gets
these benefits only after # months after 2oining employment and paying contribution. Jowever,
other benefits are available during contribution period also.
Bnfit# to mploy# co'rd undr ESI Act " An employee is entitled to get benefits which
are medical benefits as well as cash benefits. Je also can get disablement benefit.
T$ Employ# Stat In#uranc Corporation- ESIC- $a# on t$ 1.
t$
of /un,01- ta2n a
$i#toric dci#ion to ta2o'r t$ ESI #c$m in t$ Stat# #ub)ct to t$ %illingn## of t$
Stat 3o'rnmnt#4 T$ dci#ion %a# ta2n at t$ 151t$ mting of t$ ESI Corporation
$ld undr t$ c$airman#$ip of t$ formr Labour and Employmnt 6ini#tr- S$ri
C$andra#2$ar Rao4
5a2m1n% of 3ra%ui%2 Ac%, -)I+
Cratuity is a lump sum payment to employee when he retires or leaves service. It is basically a
retirement benefit to an employee so that he can live life comfortably after retirement. Jowever,
under Cratuity Act, gratuity is payable even to an employee who resigns after completing at least
+ years of service.
In 0T Retired 'mployees v. 0elhi Transport orporation 9DD"4$6 &AL' *D U 9DD" AIR &.
9DD+, it was observed that gratuity is essentially a retiring benefit which as per &tatute has been
made applicable on voluntary resignation as well. Cratuity is reward for good, efficient and faithful
service rendered for a considerable period.
AC0 5R89I<:S F8R FIAIF@F 3RA0@I0K 8ALK L The Cratuity Act provides only for minimum
gratuity payable. If employee has right to receive higher gratuity under a contract or under an
award, the employee is entitled to get higher gratuity. R&ection $4+6M.
:m&!o21rs !iab!1 und1r %$1 sc$1m1 3 The Act applies to every factory, mine, plantation, port,
and railway company. It also applies to every shop and establishment where "D or more persons
are employed or were employed on any day in preceding "9 months. R&ection"4*6M. &ince the Act
is also applicable to all shops and establishments, it will apply to motor transport undertakings,
clubs, chambers of commerce and associations, local bodies, solicitor8s offices etc. , if they are
employing "D or more persons.
:m&!o211s 1!iib!1 for ra%ui%2 L 8'mployee8 means any person 4other than apprentice6
employed on wages in any establishment, factory, mine, oilfield, plantation, port, railway company
or shop, to do any skilled, semi3skilled or unskilled, manual, supervisory, technical or clerical
work, whether terms of such employment are e/press or implied, and whether such person is
employed in a managerial or administrative capacity. Jowever, it does not include any
entral>&tate Covernment employee. R&ection 94e6M. Thus, the Act is applicable to all employees 3
workers as well as persons employed in administrative and managerial capacity.
Cratuity is payable to a person on 4a6 resignation 4b6 termination on account of death or
disablement due to accident or disease 4c6 retirement 4d6 death. Bormally, gratuity is payable only
after an employee completes five years of continuous service. In case of death and disablement,
the condition of minimum + years8 service is not applicable. R&ection $4"6M.
The Act is applicable to all employees, irrespective of the salary.
Amoun% of ra%ui%2 &a2ab!1 3 Cratuity is payable = "+ days wages for every year of completed
service. In the last year of service, if the employee has completed more than , months, it will be
treated as full year for purpose of gratuity. 3 3 In case of seasonal establishment, gratuity is
payable = 1 days wages for each season. R&ection $496M.
.ages shall consist of basic plus 0.A, as per last drawn salary. Jowever, allowances like bonus,
commission, JRA, overtime etc. are not to be considered for calculations. R&ection 94s6M.
In case of employees paid on monthly wages basis, per day wages should be calculated by
dividing monthly salary by 9, days to arrive at daily wages e.g. if last drawn salary of a person
4basic plus 0A6 is Rs. 9,,DD per month, his salary per day will be Rs. "DD 49,,DD divided by "DD6.
Thus, the employee is entitled to get Rs. ",+DD R"+ days multiplied by Rs. "DD daily salaryM for
every year of completed service. If he has completed *D years of service, he is entitled to get
gratuity of Rs. $+,DDD 4Rs. ",+DD multiplied by *D6. (a/imum gratuity payable under the Act is Rs.
*.+D lakhs 4the ceiling was Rs. ",DD,DDD which was increased to 9.+D lakhs on 9$.#.#1 by an
ordinance which was later increased to Rs *.+D lakhs while converting the ordinance into ActM.
FALIF@F 3RA0@I0K 5AKABL: L (a/imum gratuity payable is Rs $ lakhs. R&ection $4*6M. R5f
course, employer can pay more. 'mployee has also right to get more if obtainable under an
award or contract with employer, as made clear in &ection $4+6M.
IB5('3TAV 'V'(;TI5B 3 Cratuity received upto Rs. *.+D lakhs is e/empt from Income Ta/.
Cratuity paid above that limit is ta/able. R&ection "D4"D6 of Income Ta/ ActM. 3 3 Jowever,
employee can claim relief u>s %# in respect of the e/cess amount.
Bo ompulsory insurance of gratuity liability L &ection $A provides that every employer must
obtain insurance of his gratuity liability with LI or any other insurer. Jowever, Covernment
companies need not obtain such insurance. If an employee is already member of gratuity fund
established by an employer, he has option to continue that arrangement. If an employer
employing more than +DD persons establishes an approved gratuity fund, he need not obtain
insurance for gratuity liability. 3 3 Jowever, this &ection has not yet been brought into force.
Jence, presently, such compulsory insurance is not necessary.
Cratuity cannot be attached 3 Cratuity payable cannot be attached in e/ecution of any decree or
order of any civil, revenue or criminal court, as per &ection "* of the Act.
5a2m1n% of Bonus Ac%, -),7
The term FbonusG has not been defined in the ;ayment of )onus Act, "#,+. .ebster8s
International 0ictionary, defines bonus as Fsomething given in addition to what is ordinarily
received by or strictly due to the recipientG. The 5/ford oncise 0ictionary defines it as
Fsomething to the good into the bargain 4and as an e/ample6 gratuity to workmen beyond their
wagesG.
L.A.0 Formu!a r1ardin &a2m1n% of bonus'
A dispute relating to payment of bonus by the otton (ills of )ombay was decided by the
Industrial ourt, )ombay. An appeal against the award of the Industrial ourt was considered by
the Full )ench of the then Labour Appellate Tribunal 4(ill 5wners8 Association, )ombay v.
Rashtriya (ill (a-dur &angh, )ombay, "#+# II LLA "9$16.
In its decision, the LAT laid down the principles involved in the grant of bonus to workers. These
principles are known as the LAT Formula. According to the formula, the following prior charges
were to be deducted from gross profits!
". ;rovision for depreciation<
9. Reserve for rehabilitation<
*. Return of , per cent on the paid up capital< and
$. Return on the working capital at a lower rate than the return on paid3up capital.
The balance, if any, was called Favailable surplusG and the workmen were to be awarded a
reasonable share out of it by way of bonus for the year.
)onus is really a reward for good work or share of profit of the unit where the employee is
working. 5ften there were disputes between employer and employees about bonus to be paid. It
was thought that a legislation will solve the problem and hence )onus Act was passed.
:nfortunately, in the process, bonus has become almost as deferred wages due to provision of
payment of minimum %.**W and ma/imum 9DW bonus. )onus Act has not in any way reduced
the disputes.
The Act is applicable to 4a6 any factory employing "D or more persons where any processing is
carried out with aid of power 4b6 5ther establishments 4established for purpose of profit6
employing 9D or more persons. (inimum bonus payable is %.**W and ma/imum is 9DW. )onus
is payable annually within % months from close of accounting year. )onus is payable to all
employees whose salary or wages do not e/ceed Rs *,+DD per month provided they have worked
for at least *D days in the accounting year. Jowever, for calculation of bonus, ma/imum salary of
Rs 9,+DD is considered.
5nce the Act is applicable, it continues to apply even if number of employees fall below 9D. The
Act is applicable to Covernment companies and corporations owned by Covernment which
produces goods or renders services in competition with private sector. Jowever, the Act is not
applicable to Covernment employees, the employees of (unicipal orporation or (unicipality,
railway employees, university and employees of educational institutions, public sector insurance
employees, employees of R)I and public sector financial institutions, charitable hospitals, social
welfare organisations and defense employees. The Act does not apply to any institution
established not for purposes of profit.
:s%ab!is$m1n%s %o w$ic$ %$1 Ac% is a&&!icab!1 3 The Act applies toN 4a6 every factory< and 4b6
every other establishment in which twenty or more persons are employed on any day during an
accounting year. Rsection "4*6M.
Ac% no% %o a&&!2 %o c1r%ain c!ass1s of 1m&!o211s!
&ection *9 of the Act provides that the Act shall not apply to the following classes of employees!
". 'mployees employed by any insurer carrying on general insurance business and the
employees employed by the Life Insurance orporation of India<
9. &eamen as defined in clause 4$96 of &ection * of the (erchant &hipping Act, "#+%<
*. 'mployees registered or listed under any scheme made under the 0ock .orkers
4Regulation of 'mployment6 Act, "#$% and employed by registered or listed employers<
$. 'mployees employed by an establishment engaged in any industry called on by or
under the authority of any department of entral Covernment or a &tate Covernment or a local
authority<
+. 'mployees employed by!
a6 The Indian Red ross &ociety or any other institution of a like nature
including its branches<
b6 :niversities and other educational institutions<
c6 Institutions 4including hospitals, chambers of commerce and social welfare
institutions6 established not for the purpose of profit<
,. 'mployees employed through contractors on building operations<
1. 'mployees employed by the Reserve )ank of India<
%. 'mployees employed by!
a6 The Industrial Finance orporation of India<
b6 Any Financial orporation established under &ection *, or any Aoint Financial
orporation established under &ection *A of the &tate Financial orporations Act, "#,"<
c6 The 0eposit Insurance orporation<
d6 The Bational )ank for Agriculture and Rural 0evelopment<
e6 The :nit Trust of India<
f6 The Industrial 0evelopment )ank of India<
fa6 The &mall Industries 0evelopment )ank of India established under &ection * of the
&mall Industries 0evelopment )ank of India Act, "#%#<
fb6 The Bational Jousing )ank<
Any other financial institution 4other than )anking ompany6 being an establishment in public
sector, which the entral Covernment may by notification specify having regard to 4i6 its capital
structure< 4ii6 its ob2ectives and the nature of its activities< 4iii6 the nature and e/tent of financial
assistance or any other concession given to it by the Covernment< and 4iv6 any other relevant
factor.
Apart from the above, the appropriate Covernment has necessary powers under &ection *, to
e/empt any establishment or class of establishments from all or any of the provisions of the Act
for a specified period having regard to its financial position and other relevant circumstances and
it is of the opinion that it will not be in the public interest to apply all or any of the provisions of this
Act thereto. It may also impose such conditions while according the e/emptions as it may
consider fit to impose.
Im&or%an% <1fini%ions!
Accoun%in K1ar
FAccounting YearG means3
". In relation to a corporation, the year ending on the day on which the books
and accounts of the corporation are to be closed and balances<
9. In relation to a company, the period in respect of which any profit and loss
account of the company laid before it in annual general meeting is made up<
*. In any other case3
4a6 the year commencing on the "
st
day of April< or
4b6 if the accounts of an establishment maintained by the employer thereof are
closed and balances on any day other than the *"
st
day of (arch, then, at the option of the
employer, the year ending on the day on which its accounts are so closed and balanced.
;rovided that an option once e/ecuted by the employer under paragraph 4b6 of this sub3clause
shall not again be e/ercised e/cept with the previous permission in writing of the prescribed
authority and upon such conditions as that authority may think fit. R&ection 94"6M
A!!ocab!1 Sur&!us!
It means 4a6 in relation to an employer, being a company 4other than a banking company6 which
has not made the arrangements prescribed under the Income3ta/ Act for the declaration and
payment within India of the dividends payable out of its profits in accordance with the provisions
of &ection "#$ of that Act, ,1W of the available surplus in an accounting year.
4b6 In any other case, ,DW of such available surplus R&ection 94$6M.
A#ai!ab!1 Sur&!us!
It means the available surplus under &ection +. Z&ection 94,6[.
Award!
/AwardG means an interim or a final determination of any industrial dispute or of any 7uestion
relating thereto by any Labour ourt, Industrial Tribunal or Bational Tribunal constituted under the
Industrial 0isputes Act, "#$1 or by any other authority constituted under any corresponding law
relating to investigation and settlement of industrial disputes in force in a &tate and includes an
arbitration award made under &ection "DA of that Act or under that law R&ection 9416M.
:m&!o211
/'mployeeG means any person 4other than an apprentice6 employed on a salary or wages not
e/ceeding Rs.*,+DD per mensem in any industry to do any skilled or unskilled, manual,
supervisory, managerial, administrative, technical or clerical work or hire or reward, whether the
terms of employment be e/press or implied. R&ection 94"*6M
;art time permanent employees working on fi/ed hours are employees.
:m&!o21r
F'mployerG includes!
". In relation to an establishment which is a factory, the owner or occupier of the factory,
including the agent of such owner or occupier, the legal representative of a deceased owner or
occupier, and where a person has been named as a manager of the factory under clause 4f6 of
&ub3section 14"6 of the Factories Act, "#$%, the person so named< and
9. In relation to any other establishment, the person who, or the authority which, has the
ultimate control over the affairs of the establishment and where the said affairs are entrusted to a
manager, managing director or managing agent, such manager, managing director or managing
agent. R&ection 94"$6M
:s%ab!is$m1n% in 5ri#a%1 S1c%or!
It means any establishment other than an establishment in public sector.R&ection 94"+6M
Sa!ar2 or Wa1s'
The F&alary or .ageG means all remuneration 4other than remuneration in respect of over3time
work6 capable of being e/pressed in terms of money, which would, if the terms of employment,
e/press or implied, were fulfilled, be payable to an employee in respect of his employment or of
work done in such employment and includes dearness allowance 4that is to say, all cash
payments, by whatever name called, paid to an employee on account of a rise in the cost of
living6 but does not include!
". any other allowance which the employee is for the time being entitled to<
9. the value of any house accommodation or of supply of light, water, medical attendance or
any other amenity or of any service or of any concessional supply of foodgrains or other articles<
*. any traveling concession<
$. any bonus 4including incentive, production and attendance bonus6<
+. any contribution paid or payable by the employer to any pension fund or provident fund or
for the benefit of the employee under any law for the time being in force<
,. any retrenchment compensation or any gratuity or other retirement benefit payable to the
employee or any e/3gratia payment made to him<
1. any commission payable to the employee R&ection 949"6M
QFac%or28 has same meaning as per Factories Act. Rsection 94"16 of )onus ActM.
The words used are Qnumber of persons employed8. Jence, all persons employed are to be
considered, including those who are not eligible for bonus. Thus, all employees including those,
whose salary or wages e/ceed Rs *,+DD per annum will have to be considered for purpose of
deciding eligibility.
F:AAIA3 8F M:S0ABLISHF:A08 3 The word Qestablishment8 is not defined in the Act. Bormally,
Qestablishment8 is a permanently fi/ed place for business. The term Qestablishment8 is much wider
than Qfactory8. It covers any office or fi/ed place where business is carried out.
:S0ABLISHF:A0 IA 5@BLIC S:C08R C89:R:< 8ALK IA C:R0AIA CAS:S 3 The Act
applies to establishment in public sector only if the establishment in public sector sells the goods
or renders services in competition with an establishment in private sector, and the income from
such sale or services or both is not less than twenty per cent, of the gross income of the
establishment in public sector for that year. Rsection 9D4"6M. In other cases, the provisions of this
Act do not apply to the employees employed by any establishment in public sector. Rsection
9D496M. As per section *94v64c6, the Act does not apply to any institution established not for
purposes of profit.
'stablishment in public sector means an establishment owned, controlled or managed byN 4a6 a
Covernment company as defined in section ,"1 of the ompanies Act, "#+, 4" of "#+,6 4b6 a
corporation in which not less than forty per cent of its capital is held 4whether singly or taken
together6 by the Covernment< or the Reserve )ank of India< or a corporation owned by the
Covernment or the Reserve )ank of India. Rsection 94",6M. 'stablishment which is not in public
sector is Qestablishment in private sector8 Rsection 94"+6M.
FCor&ora%ionG means any body corporate established by or under any entral ;rovincial or &tate
Act but does not include a company or a co3operative society. Rsection 94""6M.
:S0ABLISHF:A0S 08 IACL@<: <:5AR0F:A0S, @A<:R0AGIA3S AA< BRAACH:S 3
.here an establishment consists of different departments or undertakings or has branches,
whether situated in the same place or in different places, all such departments or undertakings or
branches shall be treated as parts of the same establishment for the purpose of computation of
bonus under this Act. Rsection *M
W$o ar1 1!iib!1 for bonus 3 'mployees drawing salary or wages upto Rs *,+DD per month are
entitled to bonus, if he has worked for at least *D working days in an accounting year. 'ven a
worker working in seasonal factory is eligible if he has worked for at least *D working days.
Apprentices are not eligible for bonus.
&alary above Rs. 9,+DD is not considered for calculation of )onus. Rsection "9M. 'mployee
drawing salary>wage e/ceeding Rs *,+DD is not entitled to any bonus under the Act.
Thus, minimum bonus = %.**W will be Rs 9,+DD and ma/imum = 9DW will be Rs ,,DDD for the
year, when salary of employee e/ceeds Rs 9,+DD but is less than Rs *,+DD.
<@0I:S " RI3H0S 8F :F5L8K:R
<@0I:S
To calculate and pay the annual bonus as re7uired under the Act
To submit an annul return of bonus paid to employees during the year, in Form 0, to the
Inspector, within *D days of the e/piry of the time limit specified for payment of bonus.
To co3operate with the Inspector, produce before him the registers>records maintained,
and such other information as may be re7uired by them.
To get his account audited as per the directions of a Labour ourt>Tribunal or of any such
other authority.
RI3H0S
An employer has the following rights!
Right to forfeit bonus of an employee, who has been dismissed from service for fraud,
riotous or violent behaviour, or theft, misappropriation or sabotage of any property of the
establishment.
Right to make permissible deductions from the bonus payable to an employee, such as,
festival>interim bonus paid and financial loss caused by misconduct of the employee.
Right to refer any disputes relating to application or interpretation of any provision of the
Act, to the Labour ourt or Labour Tribunal.

:LI3IBILI0K F8R B8A@S IF W8RG:< F8R FIAIF@F *( <AKS 3 'very employee shall be
entitled to be paid be his employer in an accounting year, bonus, in accordance with the
provisions of this Act, provided he has worked in the establishment for not less than thirty working
days in that year. Rsection %M
Com&u%a%ion of amoun% a#ai!ab!1 for dis%ribu%ion as bonus 3 The establishment has to
prepare a balance sheet and profit and loss account of the year and calculate the Qgross profit8,
Qavailable surplus8 and Qallocable surplus8 as per method and formula given in )onus Act.
The first step is to calculate QCross ;rofit8. As per section $, the gross profit in respect of any
accounting year is re7uired to be calculated as per First &chedule to Act in case of banking
company and as per second schedule in case of other establishments. After calculation of QCross
;rofit8 as per section $, ne/t step is to calculate QAvailable &urplus8. As per section +, Qavailable
surplus8 is calculated by deducting sums as specified in section , from Qgross profit8 arrived at as
per section , and adding difference e7ual to income ta/ on the bonus paid in the preceding year.
Thus, Available &urplus is e7ual to Cross ;rofit Ras per section $M less prior charges allowable as
deduction u>s , plus amount e7ual to income ta/ on bonus portion calculated as per proviso 4b6 to
section +.
Allocable surplus is e7ual to ,DW of Qavailable surplus8 calculated as per provisions of section +.
RIn case of company which does not deduct ta/ at source as per provisions of section "#$ of
Income Ta/ Act, Qallocable surplus8 will be ,1W of Qavailable surplus8M. This Qallocable surplus8 has
to be distributed as bonus among employees in proportion to the salary or wages actually earned
by each employee during the year. Jowever, this is sub2ect to minimum %.**W and ma/imum
9DW as e/plained below.
CALC@LA0I8A 8F B8A@S SIF5LIFI:<!
The method for calculation of annual bonus is as follow!
". alculate the gross profit in the manner specified in3
a6 First &chedule, in case of a banking company, or
b6 &econd &chedule, in any other case.
9. alculate the Available &urplus.
a6 Available &urplus U A\), where A U Cross ;rofit L 0epreciation admissible u>s *9 of the
Income ta/ Act 3 0evelopment allowance 3 0irect ta/es payable for the accounting year
4calculated as per &ec.16 L &ums specified in the Third &chedule.
b6 ) U 0irect Ta/es 4calculated as per &ec. 16 in respect of gross profits for the immediately
preceding accounting year L 0irect Ta/es in respect of such gross profits as reduced by the
amount of bonus, for the immediately preceding accounting year.
*. alculate Allocable &urplus
a6 Allocable &urplus U ,DW of Available &urplus, ,1W in case of foreign companies.
b6 (ake ad2ustment for Q&et3on8 and Q&et3off8. For calculating the amount of bonus in respect
of an accounting year, allocable surplus is computed after considering the amount of set on and
set off from the previous years, as illustrated in Fourth &chedule.
The allocable surplus so computed is distributed amongst the employees in proportion to salary
or wages received by them during the relevant accounting year.
$. In case of an employee receiving salary or wages above Rs. 9,+DD the bonus payable is
to be calculated as if the salary or wages were Rs. 9,+DD p.m. only.
S1% off and s1% on &ro#isions 3 It may happen that in some years, the allocable surplus is more
than the amount paid to employees as bonus calculating it = 9DW. &uch e/cess Qallocable
surplus8 is carried forward to ne/t year for calculation purposes. This is called Qcarry forward for
being set on in succeeding years8. The ceiling on set on that is re7uired to be carried forward is
9DW of total salary and wages of employees employed in the establishment. In other words, even
if actual e/cess is more than 9DW of salary>wages, only 9DW is re7uired to be carried forward.
The amount set on is carried forward only upto and inclusive of the fourth accounting year. If the
amount carried forward is not utilised in that period, it lapses Rsection "+4"6M.
&imilarly, in a particular year, there may be lower Qallocable surplus8 or no Qallocable surplus8 even
for payment of %.**W bonus. &uch shortfall is also carried to ne/t year. This is called Qcarry
forward for being set off in succeeding years8. Thus, in every year, Qallocable surplus8 is
calculated. To this amount, set on from previous years is added. &imilarly, set off, if any, from
previous years is deducted. This gives amount which is available for distribution as bonus. The
amount set off is carried forward only upto and inclusive of the fourth accounting year. If the
amount carried forward is not set off in that period, it lapses. Rsection "+496M
Finimum bonus 3 'very employer shall be bound to pay to every employee in respect of any
accounting year, a minimum bonus which shall be %.** per cent of the salary or wage earned by
the employee during the accounting year or one hundred rupees, whichever is higher, whether or
not the employer has any allocable surplus in the accounting year. .here an employee has not
completed fifteen years of age at the beginning of the accounting year, the minimum bonus
payable is %.**W or Rs ,D whichever is higher. Rsection "DM.
.hile computing number of working days, an employee shall be deemed to have worked in an
establishment even on the days on which 4a6 Je was laid off 4b6 Je was on leave with
salary>wages4c6 Je was absent due to temporary disablement caused by accident arising out of
and in course of employment and 4d6 'mployee was on maternity leave with salary>wages.
Rsection "$M.
5a2m1n% of maHimum bonus 3 .here in respect of any accounting year, the allocable surplus
e/ceeds the amount of minimum bonus payable to the employees, the employer shall, in lieu of
such minimum bonus, be bound to pay to every employee in respect of that accounting year
bonus which shall be an amount in proportion to the salary or wage earned by the employee
during the accounting year sub2ect to a ma/imum of twenty per cent of such salary or wage.
Rsection ""4"6M. 3 3 In computing the allocable surplus under this section, the amount set on or the
amount set off under the provisions of section "+ shall be taken into account in accordance with
the provisions of that section. Rsection ""496M.
Thus, ma/imum bonus payable to employee is 9DW in any accounting year.
Sa!ar2 or wa1s for ca!cu!a%in bonus 3 .here the salary or wage of an employee e/ceeds Rs
9,+DD per month, the bonus payable to such employee under sections "D or "" shall be
calculated as if his salary or wages were Rs 9,+DD per month. Rsection "*M. In other words,
employees drawing salary or wages between Rs 9,+DD to Rs *,+DD per month, are entitled to
bonus on the basis of Rs 9,+DD per month salary only.
S&1cia! 5ro#isions wi%$ r1s&1c% %o c1r%ain n1w!2 s1% u& 1s%ab!is$m1n%s'
In the case of newly set up establishments following provisions have been made under &ection
", for the payment of bonus!
". .here an establishment is newly set up whether before or after commencement of this
Act, the employees of such establishment shall be entitled to be paid bonus under this Act in
accordance with the provisions of sub3sections 4"3A6, 4"3)6 and 4"36.
4"3A6 In the first five accounting years following the accounting year in which the employer sells
the goods produced or manufactured by him or renders services as the case may be, from such
establishment, bonus shall be payable only in respect of the accounting year in which the
employer derives profit from such establishment and such bonus shall be calculated in
accordance with the provisions of this Act in relation to that year, but without applying the
provisions of &ection "+.
4"3)6 For the si/th and seventh accounting year in which the employer sells the goods produced
or manufactured by him or renders services as the case may be, from such establishment, the
provisions of &ection "+ shall apply sub2ect to the following modifications, namely!
i. For the si/th accounting year!
&et on set off, as the case may be, shall be made in the manner illustrated in the Fourth &chedule
taking into account the e/cess or deficiency, if any as the case may be, of the allocable surplus
set on or set off in respect of the fifth and si/th accounting year.
ii. For the seventh accounting year!
&et on or set off, as the case may be, shall be made in the manner illustrated in the Fourth
&chedule taking into account the e/cess or deficiency, if any, as the case may be of the allocable
surplus set on or set off in respect of the fifth, si/th and seventh accounting years.
4"36 From the eighth accounting year following the accounting year in which the employer sells
the goods produced or manufactured by him or renders services, as the case may be from such
establishment, the provisions of &ection "+ shall apply in relation to such establishment as they
apply in relation to any other establishment.
:H&!ana%ion I3For the purpose of sub3section 4"6 an establishment shall not be deemed to be
newly set up merely by reason of a change in its location, management or ownership.
:H&!ana%ion II? For the purpose of sub3section4IA6, an employer shall not be deemed to have
derived profit in accounting year unless3
a6 Je has made provision for that year8s depreciation to which he is entitled under the
Income3ta/ Act or, as the case may be, under the Agriculture Income ta/ law, and
b6 The arrears of such depreciation and losses incurred by him in respect of the
establishment for the previous accounting years have been fully set off against his profits.
:H&!ana%ion III?For the purposes of sub3section 4"A6, 4")6 and 4"6, sale of the goods produced
or manufactured during the course of the trial running of any factory or of the prospecting stage of
any mine or an oil field shall not be taken into consideration and where any 7uestion arises with
regard to such production or manufacture, the decision of the appropriate Covernment, made
after giving the parties a reasonable opportunity of representing the case, shall be final and shall
not be called in 7uestion by any court or other authority.
496 The provisions of sub3sections 4"A6, 4")6 and 4"6 shall, so far as may be, apply to new
departments or undertakings or branches set up by e/isting establishments!
;rovided that if an employer in relation to an e/isting establishment consisting of different
departments or undertakings or branches4whether or not in the same industry6 set up at different
periods has, before the 9#
th
(ay, "#,+, been paying bonus to the employees of all such
departments or undertakings or branches were set up, on the basis of the consolidated profits
computed in respect of all such departments or undertakings or branches, then, such employer
shall be liable to pay bonus in accordance with the provisions of this Act to the employee of all
such departments or undertakings or branches 4whether set up before or after that date6 on the
basis of the consolidated profits computed as aforesaid.
.ithin the meaning of &ection ",4"3A6 the word FprofitG must obviously be construed according to
its ordinary sense. A sense which is understood in trade and industry because the rationale
behind &ection ",4"3A6 is that it is only when the employer starts making profits in the commercial
sense that he should become liable to pay bonus under the Act.
;rofit in the commercial sense can be ascertained only after deducting depreciation and since
there are several methods of computing depreciation, the one adopted by the employer, in the
absence of any statutory provision to the contrary, would govern the calculation. '/planation II to
&ection ",4"3A6 says that the employer shall not be deemed to have derived profits unless he has
made provision for that years8 depreciation to which he is entitled to under the Income3ta/ Act.
This e/planation embodies a clear legislative mandate that in determining for the purpose of sub3
section4"A6 of &ection ", whether the employer has made profit from the establishment in
accounting year, depreciation should be provided in accordance with the provisions of the
Income3ta/ Act.
learly, therefore, if depreciation is as prescribed in the Income Ta/ Act, There is no profit for the
year in 7uestion and there is no liability on the part of the employer to pay bonus under the Act
4The (anagement of entral oal .ashery v. .orkmen, "#1%3II Labour Law Aournal *+D6.
Adjus%m1n% of cus%omar2 or in%1rim bonus!
.here in any accounting year34a6 an employer has paid any ;u2a bonus or other customary
bonus to an employee< or 4b6 an employer has paid a part of the bonus payable under this Act to
an employee before the date on which such bonus becomes payable< then, the employer shall be
entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the
employee under this Act in respect of that accounting year and the employee shall be entitled to
receive only the balance 4&ection "16.
<1duc%ions of c1r%ain amoun%s from bonus!
.here in any accounting year, an employee is found guilty of misconduct causing financial loss to
the employer, then, it shall be lawful for the employer to deduct the amount of loss from the
amount of bonus payable by him to the employee under this Act, in respect of that accounting
year only and the employee shall be entitled to receive the balance, if any. 4&ection "%6
0im1 !imi% for &a2m1n% of bonus!
4a6 .here there is a dispute regarding payment of bonus pending before any
authority under &ection 99, all amounts payable to an employee by way of bonus under this Act
shall be paid in cash by his employer, within a month from the date from which the award
becomes enforceable or the settlement comes into operation, in respect of such dispute.
4b6 In any other case, the bonus should be paid within a period of eight months from
the close of the accounting year. Jowever, the appropriate Covernment or such authority as the
appropriate Covernment may specify in this behalf may, upon an application made to it by the
employer and for sufficient reasons, by order, e/tend the said period of % months to such further
period or periods as it thinks fit, so, however, that the total period so e/tended shall not in any
case e/ceed two years 4&ection "#6.
R1f1r1nc1 of dis&u%1s und1r %$1 Ac%'
.here any dispute arises between an employer and his employee with respect to the bonus
payable under this Act or with respect to the application of this Act to an establishment in public
sector, then, such dispute shall be deemed to be an industrial dispute within the meaning of the
Industrial 0isputes Act, "#$1, or any corresponding law relating to investigation and settlement of
industrial disputes in force in a &tate and provisions of that Act or, as the case may be, such law,
shall, save as otherwise e/pressly provided, apply accordingly. 4&ection 996
Accurac2 of Accoun%s!
.here any industrial dispute arises with respect to bonus payable under the Act, the audited
balance sheet and profit and loss account of a corporation or a company or a banking company
shall be presumed to be correct. &imilarly, in the case of employers not being corporation,
company or banking company, audited accounts will be presumed to be correct for the purpose of
payment of bonus.
Bonus !ink1d wi%$ &roduc%ion or &roduc%i#i%2'
&ection *"A enables the employees and employers to evolve and operate a scheme of bonus
payment linked to production or productivity in lieu of bonus based on profits under the general
formula enshrined in the Act. Jowever, bonus payments under &ection *"A are also sub2ect to
the minimum of %.** W and ma/imum of 9DW. In other words, a minimum of %.**W is payable in
any case and the ma/imum cannot e/ceed 9D W 4&ection *"A6.
Ar11m1n%s inconsis%1n% wi%$ %$1 Ac%!
&ub2ect to the provisions of &ection *"A, the provisions of this Act shall be in addition to and not
in derogation of the Industrial 0isputes Act, "#$1, or any corresponding law relating to
investigation and settlement of industrial disputes in force in a &tate.
5ow1r of :H1m&%ion!
If the appropriate Covernment, having regard to the financial position and other relevant
circumstances of any establishment or class of establishments, is of opinion that it will not be in
public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the
5fficial Ca-ette, e/empt for such period as may be specified therein and sub2ect to such
conditions as it may think fit to impose, such establishment or class of establishments from all or
any of the provisions of this Act. 4&ection *,6
Covernment should consider public interest, financial position and whether workers contributed to
the loss, before grant of e/emption 4A.P hemicals v. (aharashtra, "##, III LA )om "96.
A&&!ica%ion of c1r%ain !aws no% barr1d!
&ave as otherwise e/pressly provided, the provisions of this Act shall be in addition to and not in
derogation of the Industrial 0isputes Act, "#$1, or any corresponding law relating to investigation
and settlement of industrial disputes in force in a &tate 4&ection *#6.
R:C89:RK 8F B8A@S <@:
.here any bonus is due to an employee by way of bonus, employee or any other person
authorised by him can make an application to the appropriate government for recovery of the
money due.
If the government is satisfied that money is due to an employee by way of bonus, it shall
issue a certificate for that amount to the collector who then recovers the money.
&uch application shall be made within one year from the date on which the money
became due to the employee.
Jowever the application may be entertained after a year if the applicant shows that there
was sufficient cause for not making the application within time.

8FF:AC:S AA< 5:AAL0I:S
For contravention of the provisions of the Act or rules the penalty is imprisonment upto ,
months, or fine up to Rs."DDD, or both.
For failure to comply with the directions or re7uisitions made the penalty is imprisonment
upto , months, or fine up to Rs."DDD, or both.
In case of offences by companies, firms, body corporate or association of individuals, its
director, partner or a principal officer responsible for the conduct of its business, as the case may
be, shall be deemed to be guilty of that offence and punished accordingly, unless the person
concerned proves that the offence was committed without his knowledge or that he e/ercised all
due diligence.
5a2m1n% of Wa1s Ac%, -)*,
8bj1c%i#1s
X To ensure regular and prompt payment of wages and to prevent the e/ploitation of a
wage earner by prohibiting arbitrary fines and deductions from his wages.
A&&!icabi!i%2 of %$1 Ac%
X Application for payment of wages to persons employed in any factory.
X Bot applicable to wages which average Rs ,,+DD per month or more.
X .ages include all remuneration, bonus, or sums payable for termination of service, but
do not include house rent reimbursement, light vehicle charges, medical e/penses, TA, etc.
Im&or%an% &ro#isions of %$1 Ac%
X Responsibility of the employer for payment of wages and fi/ing the wage period.
X ;rocedures and time period in wage payment.
X ;ayment of wages to discharged workers.
X ;ermissible deductions from wages.
X Bominations to be made by employees.
X ;enalties for contravention of the Act.
X '7ual remuneration for men and women.
X 5bligations and rights of employers.
X 5bligations and rights of employees.
The Act is to regulate payment of wages to certain class of employed persons. The main purpose
of this Act is to ensure regular and timely payment of wages to the employed persons, to prevent
unauthori-ed deductions being made from wages and arbitrary fines being imposed on the
employed persons. The Act e/tends to the whole of India.
A&&!ica%ion of %$1 Ac%!
The Act applies to payment of wages to persons employed in factory or railways. It also applies to
any Qindustrial or other establishment8 specified in &ection 94ii6. R&ection "4$6M. QFactory8 means
factory as defined in &ection 94m6 of Factories Act. 3 3 Industrial or other establishment specified
in &ection 94ii6 are 3 S Tramway or motor transport services S Air transport services S 0ock wharf
or 2etty S Inland vessels S (ines, 7uarry or oil3field S ;lantation S .orkshop in which articles are
produces, adopted or manufactured. 3 3 The Act can be e/tended to other establishment by
&tate>entral Covernment.
;resently, the Act applies to employees drawing wages upto Rs ,,+DD. R&ection "4,6M. 'very
employer is responsible for payment to persons employed by him on wages. R&ection *M.
F:AAIA3 8F WA3:S 3 .ages means all remuneration e/pressed in terms of money and
include remuneration payable under any award or settlement, overtime wages, wages for holiday
and any sum payable on termination of employment. Jowever, it does not include bonus which
does not form part of remuneration payable, value of house accommodation, contribution to ;F,
traveling allowance or gratuity. R&ection 94vi6M
H8W WA3:S SH8@L< B: 5AI< 3 .ages can be paid on daily, weekly, fortnightly or monthly
basis, but wage period cannot be more than a month. R&ection $M. .ages should paid on a
working day. .ages are payable on or before 1th day after the Qwage period8. In case of factories
employing more than ",DDD workers, wages can be paid on or before "Dth day after Qwage period8
is over. R&ection +4"6M. RBormally, Qwage period8 is a Qmonth8. Thus, normally, wages should be paid
by 1th of following month and by "Dth if the number of employees are ",DDD or moreM. 3 3 .ages
should be paid in coins and currency notes. Jowever, with authorisation from employee, it can be
paid by che7ue or by crediting in his bank account. R&ection ,M.
<:<@C0I8AS 5:RFISSIBL: 3 0eduction on account of absence of duty, fines, house
accommodation if provided, recovery of advance, loans given, income ta/, provident fund, '&I
contribution, LI premium, amenities provided, deduction by order of ourt etc. is permitted.
(a/imum deduction can be +DW. Jowever, ma/imum deduction upto 1+W is permissible if
deduction is partly made for payment to cooperative society. R&ection 1M.
FIA:S L &pecific notice specifying acts and omissions for which fine can be imposed should be
e/hibited on notice board etc. &uch notice can be issued only after obtaining specific approval
from &tate Covernment. Fine can be imposed only after giving employee a personal hearing. Fine
can be ma/imum *W of wages in a month. Fine cannot be recovered in instalments. R&ection %M.
5ar% *
Labour Law Conc1ssions
*.- Labour Laws and SSI
The Covernment of India has made several attempts to revamp, rela/ and simplify labour laws
relating to &mall &cale Industries. 5ne of them is the simplification procedure envisaged by the
Labour Act enacted in "#%% to assist the small establishments. The Act, namely KLabour Laws
4e/emption from furnishing returns and maintaining registers by certain establishment6 Act, "#%%K
covers labour related acts and thus provides!
'stablishment employing "D3"# persons is re7uired to maintain only * register and to
submit an annual core return only.
'stablishment employing less than "D persons to maintain only " register and submit
only an annual core return.
5nly one Inspector will be responsible for various labour laws, e/cept in case of Factory
Act and )oiler Act.
The Labour ;olicies for &mall &cale Industries is governed by comprehensive laws. The
following laws and policies are applicable for &mall &cale Industries in India!
". Apprentices Act, "#,"
9. The )eedi and igar .orkers 4onditions of 'mployment6 Act, "#,,
*. )onded Labour &ystem 4Abolition6 Act, "#1,
$. hild Labour 4;rohibition I Regulation6 Act, "#%,
+. The hildren 4;ledging of Labour6 Act, "#**
,. The ontract Labour 4Regulation I Abolition6 Act, "#1D
1. The 'mployees ;rovident Funds and (isc. ;rovisions Act, "#+9
%. 'mployees &tate Insurance Act, "#$%
#. 'mployers Liability Act, "#*%
"D. 'mployment '/change 4ompulsory Botification of @acancies6 Act, "#+#
"". '7ual Remuneration Act, "#1,
"9. The Factories Act, "#$%
"*. The Industrial 0isputes Act
"$. The Industrial 'mployment 4&tanding 5rders6 Act,"#$,
"+. The Inter3state (igrant .orkmen 4Regulation of 'mployment and onditions of
&ervice6 Act, "#1#
",. Labour Laws 4'/emption from Furnishing Returns I (aintaining Registers by ertain
'stablishments6 Act, "#%%
"1. (aternity )enefit Act, "#,"
"%. The (inimum .ages Act, "#$%
"#. The ;ayment of )onus Act, "#,+
9D. The ;ayment of Cratuity Act, "#19
9". The ;ayment of .ages Act, "#*,
99. The &ales ;romotion 'mployees 4onditions of &ervice6 Act, "#1,
9*. The &hops and 'stablishments Act, "#+*
9$. The Trade :nion Act, "#9,
9+. .orkmen8s ompensation Act, "#9*
9,. The .eekly Jolidays Act, "#$9
91. The ;lantation Labour Act, "#+"
The &mall Industries 0evelopment 5rgani-ation under the (inistry of &mall &cale
Industries plays the role of a nodal agency for the development of small industries in
India. This agency has identified the labour reforms carried out by various &tate
Covernments which are as under!
And$ra 5rad1s$
8R<:R"A80IFICA0I8A"<A0: S@B>:C0
Labour Laws
C.5. (s.Bo.** 0t.+313##
Amendment notified vide Andhra ;radesh
Ca-ette Bo.*D
Amendment to labor 'nactments
Amendment to the provisions of &tate Act shall apply
to every industrial establishment where in +D or more
workmen are employed on any day of the preceding
Twelve months.
C.5 (s.Bo.*$ 0t.+313"### Factories Act, "#$%
'/empting establishments engaged in manufacturing
processes from the rules $, +, I , under the Factories
Act "#$%
C.5 (s.Bo.*1 0t.*3%3"### '/emption from rule 99,9* and 9# under Factories
Act "#$% And under AB0JRA ;RA0'&J &J5;&
AB0 '&TA)LI&J('BT& AT 3 for those engaged in
manufacturing processes 4relate to national holidays
and other festivals6
C.5 (s .Bo.*% 0t.*3%3"### Amendment to the AB0JRA;RA0'&J ;AY('BT
5F CRAT:ITY R:L'& "#19 and omitting rule *9
from Q:8 &ubstitution of the words Kemployee
nomineeK in place of employees.
C.5 (s .Bo.*$ 0t.+313"### Amendment to
the AB0JRA ;RA0'&J FAT5RI'& AB0
,3A!(anufacturing process! Bothing in rules $,+,and ,
shall apply to a factory under the Factories Act "#$%
'&TA)LI&J('BT& 4BATI5BAL
F'&TI@AL& I 5TJ'R J5LI0AY&6 R:L'&,
"#1$
4entral Act ,* of "#$%6 or an establishment in
manufacturing process as designated in section 94k6
of the Factories Act,"#$%.
Assam
8R<:R"A80IFICA0I8A"<A0: S@B>:C0
Botification Bo! LCL %,>%*>,9 dated
1th April, "#%$
The Assam &tate Industrial Relief
:ndertaking 4&pecial ;rovisions6 Act,
"#%$ 4Assam Act Bo. @II of "#%$6
Received the Assent of the ;resident
on 1th April "#%$
:nder this Act, industrial units which have become sick
may be declared as a relief undertaking for a total period
of "D years.
5b2ective!
To enable the &tate Covernment to make
special provisions for a limited period in respect
of industrial relations, financial obligations and
other like matters in relation to industrial
undertakings the running of which is considered
essential as a measure of prevention or of
providing relief against unemployment
The &tate Covernment may, if it is
satisfied that it is necessary or e/pedient so to
do, direct, by notification, that the operation of all
or any of the contracts, assurances of property
agreements, settlements, awards, standing
orders or other instruments in force immediately
before the date on which the &tate industrial
undertaking is declared to be a relief undertaking,
shall remain suspended or shall be enforceable
with such modifications and ins such manner as
may be specified in such notification.
The &tate Covernment may, sub2ect to
the condition of previous publication, make rules
to carry out the provisions of this Act. &uch Rules
may provide for all or any of the following matters!
rates of wages payable to the
workmen and their workloads and the
salary payable to the staff, the payment
of bonus, gratuity, compensation and
other benefits<
the manner in which the relief
undertaking should be run<
the strength of staff and labour to
be employed for running the relief
undertaking economically
the manner in which the net
profits or net losses or surplus funds
should be appropriated or disposed of<
the percentage of profits to be
utilised for the benefit of persons
employed in the undertaking and the
manner of its utilisation<
the manner in which and the
e/tent to which the representatives of the
workmen may be associated with or may
participate in the management of the
relief undertaking.
The Assam &tate Industrial Relief
:ndertaking 4&pecial ;rovisions6
5rdinance, "#%* 4Assam 5rdinance Bo.
@I of "#%*6 is hereby repealed.
The Assam ;referential &tores
;urchase Act, "#%# 4to replace the
Assam ;referential &tores ;urchase
Rules, "#196
This enactment is aimed to encourage growth of
industries in the &tate and to implement the Industrial
;olicy announced and published by the Covt. of Assam
vide Botification Bo. L +%,>%+ dated 9$th 0ecember,
"#%,
5b2ectives
to encourage small scale and cottage
industries by preferential purchase of their
products
to rationali-e the procedure for purchase
of stores re7uired by the &tate Covernment,
companies and undertakings.
The Act lays down the following !
0efinitions
onstitution of the &tate )oard
Terms of the )oard
;ower and Functions
'ligibility! To be registered under this Act
and be eligible for the incentive under this Act, a
unit in the small scale sector has to have "DD per
cent employment of local people
The location of administrative >registered
controlling officers shall be within the &tate of
Assam
The unit should be in regular production
having re7uisite machinery
;references!
&mall Industries, Phadi and ottage
industries registered under this Act shall be
e/empted from payment of earnest money and
security deposit for items in respect of which the
units are registered.
Items of stores mentioned in &chedule II
be known as KReserved ItemsK, shall be
purchased by all re7uiring authorities from
registered industries
The &tate Covt. shall from time to time
publish a list of stores which shall be purchased
by re7uiring authorities only from industrial units
having valid &tore ;urchase Registration and in
accordance with the policy laid down by the &tate
)oard.
In respect of items of stores other than
those mentioned in &chedule II or covered by the
Act, price preference shall be given to registered
industries 4or their authorised agents and dealers6
upto "D per cent in case of &mall Industries and +
per cent in case of other industries of Assam.
Fa$aras$%ra
8R<:R"A80IFICA0I8A S@B>:C0
Labour Law Reforms
Botification from 0irectorate of
Industries, Covernment of
(aharashtra Aune 9DDD
The Factories Act, "#$%!
Amendments in the 0efinition of KFactoryK
&mall 'stablishments with power and
employing upto 9+ workers without power and upto
+D workers be e/empted
Trade :nions Act, "#9,!
Trade :nion should not be affiliated to
;olitical ;arties
There should be one :nion per ompany
1 or more workers combine to form a
:nion. It is recommended that the minimum
number of workers should be increased to 9+ or *D
per cent of the work force, whichever is higher.
It is also recommended that :nder &ection
99, the '/ecutive )ody of such :nion should
comprise outsiders not e/ceeding ">*rd or 9
persons whichever is less.
Rationali-ation of the provisions with
regard to lay3offs and retrenchments, if necessary
with enhanced retrenchment compensation should
be considered
The minimum number of workers :nder
&ection 9+4P6 should be increased from "DD to
*DD.
&ection 9+ 4B6 should contain the following
proviso 3
KBotwithstanding anything contained in the
foregoing provisions of this &ection, the provisions
of this &ection will not apply to any workman who
has been in continuous service for not less than
one year under an employer and at the time of
retrenchment paid compensation which shall be
e7uivalent of $+ days average pay for every
completed year of continuous service or any part
thereof in e/cess of si/ monthsK.
(inimum .ages Act,"#$%!
(inimum .ages should be fi/ed for
unskilled temporary workers. For other categories,
they will get higher wages as per their skills and
market demand.
The number of schedules under the Act
should be reduced, and only the lowest scale of
minimum wages 4i.e., for unskilled workers6 should
be stipulated in these schedules.
Inspections!
@isits by Inspectors of various agencies
under the Labour 0epartment would be
rationalised as follows!
There would be no restriction on the
conduct of statutory inspections 4which may to the
e/tent possible, be conducted 2ointly by the
different inspectional agencies6, and in the case of
accidents.
In the case of inspections based on
complaints or information received, prior approval
from the concerned C(0I would be necessary.
In case of disagreement, or when C(0I is not
available approval may be taken from the
ollector.
In the case of inspections for collection of
statistics, Labour 0epartment may e/amine the
possibility of collection of statistics on a trial basis
through selected local associations or outside
agencies.
In the case of technical inspection, the
possibility of authori-ing technical agencies such
as @ATI, @R' etc. may be e/amine and an
approved list drawn up.
For all )oiler Inspections, reputed
technical 5rgani-ations should be empowered to
conduct such inspections.
ontract Labour 4Regulation and Abolition6 Act, "#1D
The Act should be amended to increase
the number of workers in the definition of
applicability to +D, sub2ect to further rela/ation to
the e/tent of a minimum "DD workers in respect of
units in backward areas.
(aharashtra Trade :nion 4(RT:6 I ;revention of :nfair
Labour ;ractices 4;:L;, "#1"6 Acts !
It is suggested that these Acts be tally
abolished as the re7uired purpose is being
efficiently served with the use of the industrial
disputes Act, "#$1.
@%%ar 5rad1s$
8R<:R"A80IFICA0I8A S@B>:C0
Botification Bo.$*9>,3;R, Panpur,
0t. "D3%39DDD
Labour Laws!
The Factories Act, "#$%
&ection #9
There should be a classification of
offences>violations depending upon their
seriousness. The punishment provided
should be commensurate to the
seriousness of the violation.
:.;. Factories Rules, "#+D
Rule 1 Registration and Crant of License
It is suggested that there is an urgent need
to move toward long period licensing so
that 'ntrepreneurs do not have to face
problems of annual renewals.
:.;. Industrial 0isputes Act, "#$1
&ection 94F6 Retrenchment
The utility of the :; Industrial 0isputes
Act, "#$1 is no more< therefore it should
be repealed. If such repealment is not
considered proper, &ection 94bb6 and 94c6
be added to &ection 9 4s6 of the :; I0 Act,
"#$1.
&ection 94bb6 relates to termination of the
service of the workmen as a result of non3
renewal of the contract of employment.
&ection 94c6 relates to termination of the
service of the workmen on the ground of
continued ill3health.
&ection , 4)6 &ettlement outside
conciliation proceedings
It is suggested that &ection "%4*6 of the
Industrial 0isputes Act, "#$1 be
substituted in place of &ection , ).
&ection "%4*6 relates to a settlement
arrived at in the course of conciliation
proceedings under this Act.
(inimum .ages Act, "#+%
&ection * fi/ing of (inimum Rates of .ages
It is suggested that 9* categories of
employment in ;art I of the &chedule and
'mployment in Agriculture of ;art II are
e/cessive categories. It should be limited
to two categories! skilled and unskilled
workers.
Trade :nions Act, "#9,
&ection 99 relating to proportion of officers to be
connected with the Industry.
It is suggested that not less than *>$th of
the total number of office bearers be
substituted to one half of the total number
of &ection 99.
ontract Labour 4Regulation and Abolition Act, "#1D6
&ection "D prohibition of employment of ontract
Labour
It is suggested that '/emption under the
ontract Labour Act to e/port oriented
shall be granted by the appropriate
Covernment in Time )ound &chedule. &o
that '/port 5riented :nits can fulfil the
e/port in the scheduled time.
C 5 0t. *3*3"##$ 4Labour
0epartment6
Approval of ;lants of the Bon3ha-ardous factories
40elegation of ;ower to Industries 0epartment 5fficers6.
It was issued by Labour 0epartment for one year
on e/perimental basis. It is suggested that the
validity of this C5 be e/tended permanently.
W1s% B1na!
8R<:R"A80IFICA0I8A S@B>:C0
Labour Laws
C.5. (s.Bo.** 0t.+313##
Amendment notified vide Andhra ;radesh
Ca-ette Bo.*D
Amendment to labor 'nactments
Amendment to the provisions of &tate Act shall apply
to every industrial establishment where in +D or more
workmen are employed on any day of the preceding
Twelve months.
C.5 (s.Bo.*$ 0t.+313"### Fac%ori1s Ac%, -).B
'/empting establishments engaged in manufacturing
processes from the rules $, +, I , under the Factories
Act "#$%
C.5 (s.Bo.*1 0t.*3%3"### '/emption from rule 99,9* and 9# under Factories
Act "#$% And under AB0JRA ;RA0'&J &J5;&
AB0 '&TA)LI&J('BT& AT 3 for those engaged in
manufacturing processes 4relate to national holidays
and other festivals6
C.5 (s .Bo.*% 0t.*3%3"### Amendment to the AB0JRA ;RA0'&J ;AY('BT
5F CRAT:ITY R:L'& "#19 and omitting rule *9
from Q:8 &ubstitution of the words Kemployee
nomineeK in place of employees.
C.5 (s .Bo.*$ 0t.+313"### Amendment to
the AB0JRA ;RA0'&J FAT5RI'& AB0
'&TA)LI&J('BT& 4BATI5BAL
F'&TI@AL& I 5TJ'R J5LI0AY&6 R:L'&,
"#1$
,3A!(anufacturing process! Bothing in rules $,+,and ,
shall apply to a factory under the Factories Act "#$%
4entral Act ,* of "#$%6 or an establishment in
manufacturing process as designated in section 94k6
of the Factories Act,"#$%.
*.+ Labour Laws and S:N
The Covernment of India has offered a number of incentives both monetary as well as non3
monetary to the units operating in &'E. In order to create a conducive business environment in
which the entrepreneurs and enterprises have complete freedom to conduct their business
operations and to remain globally competitive, &tate Covernments have been empowered to
amend the Labour Laws according to their re7uirements.
Bormal Labour Laws are applicable to &'Es, which are enforced by the respective state
Covernments. The &tate Covernments have been re7uested to simplify the procedures>returns
and for introduction of a single window clearance mechanism by delegating appropriate powers to
0evelopment ommissioners of &'Es. The following are some of the changes brought in by
&tate Covernments with respect to Labour Law Regulations!
". The powers of the Labour ommissioner are delegated to the designated 0evelopment
ommissioner or other authority in respect of the area within the &'Es.
9. (odalities have been devised for the grant of various permissions re7uired from the
Labour ommissioner within the &'Es themselves through the stationing of e/clusive
personnel for the purpose or through other means so that clearances relating to various
labour laws can be provided at a single point in the &'Es.
*. '/cept in emergent circumstances, the prior permission of the 0evelopment
ommissioner or other designated authority of the &'Es would be re7uired for the
conduct of inspections of these agencies of industrial units and other establishments
within the &'Es.
$. The ;owers of the hief Inspector of Factories I )oilers are delegated to the designated
0evelopment ommissioner or other authority in respect of the area within the &'Es.
+. (odalities have been devised for grant of various permissions re7uired from the hief
Inspector of Factories I )oilers within the &'Es themselves through the stationing of
e/clusive personnel for the purpose or through other means so that clearances relating to
various labour laws can be provided at a single point in the &'Es.
,. '/cept in emergent circumstances, the prior permission of the 0evelopment
ommissioner or other designated authority of the &'Es would be re7uired for the
conduct of inspections by these agencies of industrial units and other establishments
within the &'Es.
1. All industrial units and other establishments in the &'Es area declared as F;ublic :tility
&erviceG under the provisions of the Industrial 0isputes Act.
%. &ub2ect to the &tate Legislature approval and Covernment of India8s assent, amendments
shall be proposed to the Industrial 0isputes Act. The proposed amendments include,
inter3alia, limiting the applicability of hapter @) to industries employing *DD or more
workmen, etc. &imilarly, the ontract Labour 4Regulation I Abolition6 act is proposed to
be amended to e/clude certain peripheral service activities. Incase it is not found feasible
to amend these statues as proposed, similar amendments will be proposed only for units
and establishments within the &'Es.
#. &everal provisions of Industrial 0isputes Act and Factories Act have been identified which
have created unnecessary hindrances in the smooth functioning of the &'Es. The &tate
Covernments have resolved to do away with those provisions or simplify them.
"D. Apart from this, the &tate Covernments are also empowered to get the inspection done
by some e/ternal agency regarding the health and safety aspects of the labourers
working in the units of the &'E.
"". (any &tate Covernments have notified have a single reporting format for &'E units
which would cover all the applicable labour laws.
The following list provides a list of the some of the amendments proposed with respect labour
law regulations!
5ar% .
W$ic$ cour% %o a&&roac$ in cas1 of a !abour dis&u%16
..- >udicia! S2s%1m in India
The 2udicial system in India is 7uite well3established and independent. The &upreme ourt of
India in Bew 0elhi is the highest ourt of Appeal. 'ach &tate has a Jigh ourt along with
subsidiary 0istrict ourts, which enforce the rule of law and ensure fundamental rights of citi-ens,
guaranteed by the onstitution of India.
India has a three3tier court system with a typical Indian litigation starting from a 0istrict ourt and
reaching its logical conclusion in the &upreme ourt of India. The Jigh ourts along with the
various &tate level forums, situated mostly in the &tate capitals, constitute the middle rung of this
three3tier system. 0istrict level courts are the courts of first instance in dispute resolution e/cept
in cases where they are prevented from being so by virtue of lack of pecuniary 2urisdiction. ases
involving violation of fundamental rights are filed in respective Jigh ourt or &upreme ourt.
A number of special courts and tribunals have been constituted in India to deal with specific
disputes! 3
". Ta/ Tribunals
9. onsumer 0ispute Redressal Forums
*. Insurance Regulatory Authority of India
$. Industrial Tribunals
+. 0ebts Recovery Tribunals
,. ompany Law )oard
1. (otor Accidents laims Tribunals
%. Labour ourts
..+ W$1r1 %o fi!16
(ost of the labour disputes are referred to the Labour ourts>Industrial Tribunals through the
0epartment of Labour under the respective &tate Covernment. The process for labour dispute
starts with filing of a petition before Labour onciliation 5fficer and in case no compromise is
possible, the said officer sends a failure report to the Covernment. After consideration of the said
report, the Covernment may send a reference to the Labour ourt>Industrial Tribunal. In certain
matters, the labour dispute can be directly filed in the court concerned.
Labour Cour%s These courts are found in every district and they form the courts of original
2urisdiction under which various labour laws and rules are enforced.
A&&1!!a%1 Labour Cour%s These courts hear only the Appeals and revisions originating from the
2udgements and orders of the subordinate original labour courts and officers, under the provisions
of various labour and related laws.
a) .hen an industrial dispute has been referred to a Labour ourt for ad2udication, it is the
duty of the Labour ourt to
(i) Jold proceedings e/peditiously, and
(ii) To submit its award to the appropriate Covernment soon after the conclusion
of the proceedings.
b) Jowever, no deadline has been laid down with respect to the time within which the
completion of proceedings has to be done. Bonetheless, it is e/pected that these ourts
hold their proceedings without getting into the technicalities of a ivil ourt.
c) It has been held that the provisions of Article "*1 of the Limitation Act do not apply to
reference of disputes to the Labour ourts. These ourts can change the relief granted
by refusing payment of back wages or directing payment of past wages too.
Cour% F11
Bo ourt fee is payable on the petitions filed before Labour ourts and Industrial Tribunals.
..* W$a% ma%%1rs fa!! wi%$in %$1 jurisdic%ion of Indus%ria! 0ribuna!s6
". .ages, including the period and mode of payment
9. ompensatory and other allowances
*. Jours of work and rest intervals
$. Leave with wages and holidays
+. )onus, profit sharing, provident fund and gratuity
,. &hift working otherwise than in accordance with standing orders
1. lassification by grades
%. Rules of discipline
#. Retrenchment of workmen and closure of establishment
... W$a% ma%%1rs fa!! wi%$in %$1 >urisdic%ion of Labour Cour%s6
". The propriety or legality of an order passed by an employer under the standing orders
9. The application and interpretation of standing order
*. 0ischarge or dismissal of workmen including re3instatement of, or grant of relief to, workmen
wrongfully dismissed.
$. .ithdrawal of any customary concession or privilege
+. Illegality or otherwise of a strike or lock3out< and
,. All matters other than those being referred to Industrial Tribunals.
..7 S%a1s of adjudica%ion in !abour or indus%ria! dis&u%1s
The first is receiving a reference from the appropriate Covernment or filing of the labour dispute in
the Labour ourt. The ne/t step is sending notice to the (anagement and after filing of the
response by them, the matter is fi/ed for ad2udication. The fourth step is recording the evidence
of the parties and hearing the arguments. It is appropriate to mention here that advocates cannot
appear in Labour ourts>Industrial Tribunals, unless permitted.
0$1 fina! conc!usion of %$1 dis&u%1
After hearing the parties, the Labour ourt>Industrial Tribunal decides the dispute and the said
final decision is called an Award. A copy of the award is to be published by the Labour
0epartment as per rules. opies of the same are also sent to the parties concerned.
:H1cu%ion of Awards
In case the management does not comply with the terms of the award, the workman may pray for
its e/ecution by moving an application before the concerned onciliation 5fficer.
.., F1dia%ion in Labour <is&u%1s
(ediation is an e/ercise of resolving a dispute by settlement with the help of a (ediator who is a
neutral third party. The mediator may be!
a6 ]A 2udicial officer 4retired or sitting 2udge6
b6 An Advocate
c6 An otherwise trained professional
.hen a sitting 2udicial officer acts as a mediator in a case, his services are available free of cost
and without any other charges on any of the parties.
Ro!1 of %$1 F1dia%or
A mediator helps the parties in arriving at an amicable solution through negotiation. Je facilitates
the parties in reaching a mutually acceptable agreement. The parties need not agree to the terms
of settlement, if they are not satisfied. Audges and arbitrators make decisions that are imposed on
parties but a mediator helps the parties to evaluate the probable outcome of a dispute and then
leads them to an acceptable settlement.
5roc1ss of F1dia%ion
A mediator meets both the parties in a 2oint mediation session. The initial meeting provides for!
a6 An introduction to the participants and the mediation process.
b6 An opportunity to discuss issues affecting settlement that are important for the mediator
to know.
c6 An opportunity to determine what information would be helpful for the mediator to have at
or in advance of the mediation.
The 2oint session provides an opportunity for each participant, either directly or through counsel,
to e/press their view of the case to the other participants and how they would like to approach
settlement. The opening statements are intended to begin the settlement process, not to be
adversarial or a restatement of positions.
F:<IA0I8A 5R8C:<@R:
Formal procedures as in a ourt or arbitration are completely absent in mediation proceedings.
)oth parties and their advocates participate freely without any set procedures or any rules of
evidence. The absence of formality provides for an open discussion of the issues and allows a
free interchange of ideas making it easier for the parties to determine their interest and fashion a
solution accordingly. A mediator may, if necessary, meet the disputing parties individually and in
private. &uch meetings are completely confidential and are intended to understand the needs of
each participant and what prevents him or her from reaching a settlement. In these private
meetings, the mediator often assists parties to prioriti-e their interest and options for settlement
and to assess the relative strengths and weaknesses of their positions. 5nce a settlement is
reached, the mediator records it with the signatures of the parties.
Som1 im&or%an% &oin%s in %$1 F1dia%ion 5roc1ss
a6 All mediation proceedings are confidntial2 0ocuments generated for the mediation are
also confidential and may not be introduced during a subse7uent trial should the case not
settle.
b6 ounsel and parties with #ttlmnt aut$ority must attend mediation sessions. ertain
e/ceptions may be granted for institutional parties or if a party is a unit of government.
c6 :nless the presiding 2udge indicates otherwise, referral of a case to mediation do# not
#tay other proceedings in the case or alter applicable litigation deadlines. A 2udicial officer
may, while referring a case to mediation, fi/ a time limit for completing the mediation
process.
Ad#an%a1s of F1dia%ion F1%$od for <is&u%1 R1so!u%ion
(i) 5roc1dur1s mor1 sa%isf2in r1su!%s
a6 Jelps settle all or part of the dispute much sooner than regular trial.
b6 ;ermits a mutually acceptable solution that a court would not have the power to order.
c6 &aves time and money
d6 ;reserve ongoing business or personal relationships
e6 Increases satisfaction and thus results in a greater likelihood of a lasting resolution.
(ii) A!!ows mor1 f!1Hibi!i%2, con%ro! and &ar%ici&a%ion
a6 Tailors the procedures used to seek a resolution
b6 )roadens the interests taken into consideration
c6 Fashions a business3driven or other creative solution that may not be available from the
court.
d6 ;rotects confidentiality
e6 'liminates the risks of litigation
(iii) :nab!1s a b1%%1r und1rs%andin of %$1 cas1
a6 ;rovides an opportunity for clients to communicate their views directly and informally
b6 Jelps parties get to the core of the case and identify the disputed issues.
c6 Jelps parties agree to e/change key information directly.
(i#) Im&ro#1s cas1 mana1m1n%
Barrows the issues in dispute and identifies areas of agreement and disagreement.
(#) R1duc1s $os%i!i%2
a6 Improves the 7uality and tone of communication between parties.
b6 0ecreases hostility between clients and lawyers.
c6 Reduces the risk that parties will give up on settlement efforts.
How %o Ini%ia%1 F1dia%ion6
.here both the parties agree in a pending case to try to get their dispute settled through
(ediation, the ourt will record the same and send the file to (ediation entre.

5ar% 7
7.- Addr1ss of Labour Commission1rs
(i) Andaman and Aicobar Is!ands
Telephone! 4D*"#96 9**"*% > 9*9+$1
'mail! lcdet=and.nic.in
.ebsite! http!>>labour.and.nic.in>
(ii) <1!$i
5ffice of the Labour ommissioner
Covernment of B..T. 5f 0elhi
+, &ham Bath (arg,
0elhi 3 ""DD+$.
Tel Bos. #"3""39*#,1$#+
Fa/! #"3""39*#,9%9*
'3mail Address! 2lcadmlab=hub.nic.in
.ebsite! http!>>labour.delhigovt.nic.in>
(iii) 3ujara%
5ffice of Labour ommissioner,
)lock Bo. "$, 9nd Floor, :doyg )havan,
&ector 3 "". Candhinagar 3 *%9 D"*. Cu2arat.
Telephone! \#"39*93+1+DD 456
Fa/! \#"39*93+1+D9
(obile! \#"3#%9+D $#"%"
.ebsite! www.labourandemployment.gov.in

(i#) Himac$a! 5rad1s$
Labour ommissioner cum 0irector of 'mployment
Bew Jimrus )hawan, ircular Road,
&himla3"1"DD".
Telephone! 4D"116 9,9+D%+
'mail! lande=sancharnet.in< lep3hp=nic.in
.ebsite! http!>>himachal.nic.in>'mployment>
(#) Garna%aka
ommissioner of Labour
(r. P.&. (an2unath
Parmika )havan, ITI ompound,
)annerghatta Road, )angalore3+,D D9#.
Telephone! 4D%D6 9,+* "9+9
.ebsite! www.labour.kar.nic.in
(#i) G1ra!a
5ffice of the Labour ommissioner,
Jousing )oards )uilding, Thiruvanathapuram,
Perala.
Telephone! 4D$1"6 9**D$"$
.ebsite! www.labourkerala.gov.in
(#ii) Fa$aras$%ra
5ffice of the Labour ommissioner,
ommerce entre, Tardeo Road,
(umbai.
.ebsite! http!>>industry.maharashtra.gov.in
(#iii) Aaa!and
5ffice of the Aoint Labour ommissioner
Covernment of Bagaland,
0istrict Labour 5ffice,
.okha, Bagaland.
Telephone! \#" 4*1"6 991"",%
'mail! labouremployment=yahoo.com
.ebsite! www.labourngl.nic.in
(iH) Rajas%$an
ommissioner of 4Labour I 'mployment6 0epartment
5ffice of Labour ommissioner,
Covt. of Ra2asthan
Aaleb howk,
Aaipur3*D9DD9,
Ra2asthan
;hone Bo! D"$"39,D1$1*, 9,"%+"1, 9,"#9+,
.ebsite! www.ra2labour.nic.in
(iH) 5unjab
0epartment of Labour ommissioner, ;un2ab,
&5 Bo. $13$%, &ector 3 "1 ',
handigarh 3 ",DD"1
;hone! \ #"3"19391D9$%,
Fa/! \ #"3"19391D$D#"
'mail! delc=pun2abmail.gov.in
.ebsite! www.pblabour.gov.in
(H) Laks$adw11&
0istrict 'mployment 5fficer
0istrict 'mployment '/change
:nion Territory of Lakshadweep
Pavaratti 3 ;in!,%9 +++
;hone! D$%#,9,9D%9
Fa/! D$%#,9,*D*+
'mail ! lk3dee=hub.nic.in
.ebsite ! www.lakemployment.gov.in
(Hi) 0ami! Aadu
Labour ommissionerate
0(& omple/,
Teynampet, hennai ,DD DD,.
Telephone!9$*9 "$*%> 9$*9 "$D%>9$*9 "+D#
.ebsite! http!>>www.tn.gov.in>department>labour.htm
7.+ AB8@0 0H: A@0H8R
A $i$!2 acc!aim1d acad1mician and an ac%i#1 m1mb1r in #arious &rof1ssiona! bodi1s,
Rajkumar S. Adukia $as b11n workin %ir1!1ss!2 for %$1 caus1 of %$1
&rof1ssion. H1 is a m1mb1r of %$1 5rof1ssiona! accoun%an%s in
Busin1ss Commi%%11 (5AIB) of In%1rna%iona! F1d1ra%ion of
Accoun%an%s (IFAC) and %$1 C1n%ra! Counci! of %$1 ICAI.
Je is a member of numerous committees of the Institute and is actively
involved in their working. Je has conducted about +DDD seminars I
workshops. Jis practice areas include corporate and international laws
and pro2ect work.
)esides this book, he has authored a number of books on vast range of topics including Internal
Audit, )ank audit, AR5 and real estate, has contributed articles to newspapers, and maga-ines
and presented papers at national and international seminars. 0rawing on his e/perience from
practice of 9, years and his interaction with accounting bodies worldwide, the author has come
out with this book titled3 FA $andbook on Labour Laws in India4. This book is a simple
approach to labour laws, with labour laws e/plained in the laypersonHs language. It provides
coverage of employment relationship and procedure, employment obligations, and employment
regulation. The book is valuable as a guide in its current form for those working in human
resources, employers, employees as well as corporate attorneys. This book is intended to instruct
employers on how to manage its work force effectively and efficiently.
Thus the book attempts to provide vital background information on labour laws in India. The
author has also written a detailed book on this sub2ect titled FLAB8@R LAWS 8F IA<@S0RK
on1 s$ou!d know (for 1m&!o21rs= 1m&!o211s).
This book covers e/haustively covers wide range of topics like
Labour 2urisdiction under the onstitution of India
@arious entral Legislations
Labour Laws for &&Is and &'Es
;rocedure for filing a case in a labour court>industrial tribunal, etc.