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Industrial Disputes Act

The Objects Of The Act Are : 1. 2. 3. 4. 5. To To To To To Promote Measures For Securing Peace In The Industry Provide For Suitable Machinery For Resolving Disputes Prevent Illegal Strikes And Lock-Outs Provide Relief To The Employment In Respect Of Lay-Off And Retrenchment Give The Employees Right Of Collective Bargaining

Authorities Constituted Under The Act : (A) Works Committee (B) Conciliation Officer (C) Board Of Conciliation (D) Court Of Inquiry (E) Labour Court (F) Industrial Tribunal (G) National Industrial Tribunal The Act Prescribes Retrenchment Compensation At The Rate Of 15 Days Wages For Every Completed Year Of Service Plus One Months Notice Pay In Lieu Of Notice. To The Laid Off Workers Employer Is Required To Pay Half Days Wages As Lay-Off Compensation. It Provides Certain Protection To The Union Office Bearers Of A Union Office Bearers Of A Union Who Are Called Protected Workmen. Their Conditions Of Service Cannot Be Changed Unless Certain Statutory Conditions Are Satisfied.

Industrial Disputes Act 1947 Object Of The Act : Investigation & Settlement Of Industrial Disputes. What Is An Industry? 1. Any Systematic Activity 2. Carried On By Co-Operation Between An Employer And His Workmen. 3. For Production, Supply Or Distribution Of Goods Or Services Not Being Spiritual Or Religious

Whether Or Not
A) Any Capital Is Invested ; Or B) Any Motive To Make Gain Or Profit Exists

But Includes
A) Any Activity Of Dock Labour Board B) Any Activity Relating To Sales Promotion

But Does Not Include


1) Agricultural Operations, Except Where It Is Carried On In An Integrated Manner With Any Other Activity Referred To Above And The Latter Is The Predominant One No. 1

2) Hospitals Or Dispensaries 3) Educational, Scientific, Research Or Training Institutions. 4) Charitable & Social Service Institutions 5) Khadi Or Village Industries 6) Sovereign Functions Of The Govt. Including Dealing With Defence Research, Atomic Energy Or Space 7) Domestic Services 8) Professional Activities If Persons Employed Are Less Than Ten 9) Activities Of A Co-Operative Society Or Club Etc, If Persons Employed Are Less Than Ten.

What Is An Industrial Dispute?


1) Any Dispute Or Difference 2) Between Employers And Employers, Or 3) Between Employers And Workmen, Or 4) Between Workmen And Workmen 5) Connected With The Employment Or Non-Employment Or The Term Of Employment Or With Conditions Of Labour Of Any Person.

Individual Dispute & Industrial Dispute


Sec. 2-A : Where An Employer Discharge, Dismisses, Retrenches Or Otherwise Terminates The Services Of An Individual Workman, Any Dispute Connected With Such Discharge Etc. Shall Be Deemed To Be An Industrial Dispute Not Withstanding That No Other Workman Or Any Union Of The Workman Is A Party To The Dispute. All Other Disputes Enumerated In Schedules Ii And Iii Are Of Collective Nature And As Such Do Not Require Espousal.

Who Is A Workman?
1) Any Person, Including An Apprentice 2) Employed In Any Industry 3) To Do Any Manual, Unskilled, Skilled, Technical, Operations, Electrical Or Supervisory Work 4) For Hire Or Reward And Includes

5) Any Person Who Has Been Dismissed, Discharged Or Retrenched And Whose Dismissal Etc. Has Led To That Dispute.But Does Include Any Such Person 1) Who Is Subject To Air Force Act, Army Act Or Navy Act No. 2

2) Who Is Employed In Police Or Prison Service 3) Who Is Employed In A Managerial Or Administrative Capacity 4) Who Being Employed In Supervisory Capacity, Draws Wages Exceeding Rs. 1,600/- P.M. Or Exercises, Either By The Nature Of Duties Attached To His Office Or By Reason Of Power Vested In Him, Functions Mainly Of A Managerial Nature.

Contract Labour (R & A) Act, 1970 Objects : As The Name Indicates, The Acts Has Twin Objects. (1) To Regulate The Employment Of Contract Labour (2) To Abolish The Employment Of Contract Labour

Advantages Of Having Contract Labour System:


1. 2. 3. 4. 5. Lower Production Costs Absence Of Fringe Benefits Like Leave With Wages, Medical Insurance Absence Of Gratuity, Bonus Liability Lower Contribution Of Esi, P.F General Reduction In Overhead Costs And Administrative Charges The System Of Contract Labour Is Archaic Primitive And Baneful . It Is Nothing But An Improved Version Of Bonded Labour Supreme Court In Standard Vacuum Refining Co. V- Their Workmen 1960(2) Llj 238.

Applicability
1. To Every Establishment In Which 5 Or More Workmen Are/Were Employed As Contractor Labour. 2. To Any Contractor Who Employs/Employed 5 Or More Workmen On Any Day 3. Government Can Reduce The Number Of Workmen

Exception
1. Establishments In Which Work Only Of An Intermitted Or Casual Nature Is Performed 2. The Decision Of The Government Is Final

Examples
1. If Work Is Performed For More Than 120 Days In The Preceding 12 Months Or 2. If Work Is Performed In A Seasonal Factory For More Than 60 Days In A Year It Is Not A Work Of An Intermittent Nature.

Registering Officers & Registration Of Establishments


Asst. Commissioner Of Labour Is The Registering Officer To Whom The Principal Employer Has To Apply For Registration Of His Establishment. He Issues The Certificate Of Registration, Which Is Likely To Be Revoked If It Is Obtained On Misrepresentation Or Suppressions Of Facts Etc. No No. 3

Principal Employer Shall Engage Contract Labour Without Registration Or If It Is Revoked.

Licensing Of Contractors
No Contractor Shall Undertake To Execute Work Through Contract Labour Except In Accordance With License Granted To Him By The Licensing Officer

The Contractor Has To Apply In The Prescribed Form For The Grant Of License After Paying Prescribed Fee And After Verification, License Will Be Granted Containing The Following Particulars:
Name Of The Contractor, Location Of The Establishment, Nature Of Work, Working Hours, Fixation Of Wages, Number Of Employees Permitted To Be Engaged And Other Essential Facilities.

Advisory Boards Central & State

The Board Consist Of : 1. Chairman, Appointed By Government 2. Chief State Labour Commissioner 3. Representatives Of Government, Railways, Coal Industry, Mining Industry (State Industries) Contractors, The Workman And Other Interests.
Composition

Central State

11 To 17 09 To 11

4. The Number Of Workmens Representatives Shall Not Be Less Than The Number Of Representative Of The Principal Employer And The Contractors.

Duties Of The Board


To Advise The Government On Matters Relating To The Administration Of The Act And To Carry Out Other Functions.
The License Is Valid For 1 Year, To Be Renewed On Payment Of Fees. The License Is Liable To Be Revoked Or Suspended If (I). It Is Obtained By Misrepresentation Or Suppression Of Facts (Ii). If The Conditions Of License Are Not Complied With

Apart Form Annual License Fee, Every Contractor Has To Make Security Deposit At The Rate Of Rs. 30/- For Each Workman He Proposes To Engage. In The Application For License He Should Specify The Total Number Of Workers He Wishes To Engage.

Security Deposit

Appeals
An Appeal Lies Against An Order Refusing To Register The Establishment, Or Refusing To Grant License Or Its Revocation Or Suspension Or Forfeiture Of Security Deposit Within 30 Days.
No. 4

Prohibition Of Contract Labour


Basing On Recommendation Of The Advisory Board, The Appropriate Government By Notification Prohibit The Employment Of Contract Labour In Any Process, Operation Or Other Work. Before Doing So, The Government Shall Have Regard To The Conditions Of Work And Benefits Provided To The Contract Labour In The Establishment ,And Other Relevant Factors: Such As (A) Whether The Contract Work Is Incidental To Or Necessary For Lie Industry Or Trade That Is Carried On In Establishment.
(B) Whether It Is Perennial Nature I.E, It Is Of Sufficient Duration.

(C)

Whether It Is Done Ordinarily Through Regular Workmen

(D) Whether It Is Sufficient To Employ Considerable Number Of Whole Time Workmen


If A Question Arises As To Whether The Work Is Of Perennial Nature, The Decision Of The Government Is Final

Welfare And Health Of Contract Labour


In Every Place Where The Contract Work Lasts For 6 Months Or More And Where 100 Or More Workers Are Employed The Contractor Shall Provide The Following Facilities. (1) (2) (3) (4) (5) (6) Canteen Rest Rooms Latrines And Urinals Drinking Water Facility Washing Facility First-Aid Facility

If The Contractor Fails To Provide Such Amenities, The Principal Employer Shall Provide Them And Deduct The Cost From The Contractors Bills.

Wages
If Less Than 1000 Workers, Wages To Be Paid Before Expiry Of 7th Day If More Than 1000 Workers Before Expiry Of 10th Day The Principal Employer Shall Ensure The Presence Of His Representative At The Time Of Payment Of Wages Who Should Certify That Wages Were Paid In His Presence. If The Contractor Fails, The Principal Employer Should Pay Wages And Recover From The Contractors Bills. Under Rule 25 Of A P Contract Labour (R & A) Rules 1971, The Commissioner Of Labour Ap Is Empowered To Fix Or Revise From Time To Time The Minimum Rates Of Wages Payable To The Contract Labour.

Every Contractor Should Maintain The Following Registers


1. Register Of Persons Employed In Form No. Xiii 2. Muster Roll In Form No. Xiv No. 5

3. Register Of Wages In Form No. Xvii Or A Combined Register Of Wages Cum Muster Roll In Form No. Xviii 4. Register Of Deductions In Form No. Xx 5. Register Of Fines In Form No. Xxi 6. Register Of Advances In Form No. Xxii 7. Register Of Overtime In Form No. Xxiii 8. Wages Slips In Form No. Xix Where The Wages Period Is One Week Or More, Every Contractor Should Issue Wage Slips To All The Workmen Engaged By Him (Rule 78)

Workmens Compensation Act 1923


To Provide For Payment By Certain Classes Of Employers To Their By Accident Applicability Where The Esi Act Applies This Act Does Not Apply

Workmen

Compensation For Injury

Wages Exceeding Rs 3000/-Per Month Esi Act Does Not Apply Wc Act Applies
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Esi Non Implemented Areas - Wc Act Applies

Schedule 2 Covers Wide Range Of Workmen Without Any Ceiling On Wages. Compensation Whenever A Personal Injury Is Earned To A Workman By An Accident Arising Out Of And In The Course Of His Employment, His Employer Shall Be Liable To Pay Compensation In Accordance With The Provisions Of Chapter Ii Amount Of Compensation a. Where Death Results Flow The Injury 50% Of The Monthly Wage Of The Deceased Workman Multiplied By The Relevant Factor As Mentioned In Schedule Iv
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Or An Amount Of Rs. 50.000/- Whichever Is More b. Where Permanent Total Disablement Results From The Injury - An Amount Equal To 60% Of The Monthly Wages Multiplied By Relevant Factor

Explanation I Relevant Factor Depends Upon The Age Of The Workman As On The Date Of Accident Explanation Ii Where Little Monthly Wages Of The Deceased Workman Exceed Rs.2000/-His Wages For The Purpose Of Clauses (A) & (B) Shall Be Deemed To Be Rs.2000/- Only.

(C) Where Permanent Partial Disablement -

Results From The Injury

Compensation Payable For Permanent Total Disablement Proportion To The Percentage Of Loss Of Earning Capacity As Mentioned In Part Ii Schedule I And

No. 6

Where The Injury Is Not Specified In Schedule I Time Loss Of Cant 1mg Capacity Should Be Assessed By A Qualified Medical Practitioner. Explanation I Where More Than One Injury Are Caused By Time Same Accident, The Amount Of Compensation Payable Under Each Head Shall Be Aggregated But In Any Case It Should Not Exceed The Amount Of Compensation Payable For Permanent Total Disablement. Explanation Ii While Assessing The Loss Of Earning Capacity For Injuries Not Specified It Schedule I. The Doctor Shall Have Due Regard To The Percentage Of Loss Of Earning Capacity For Different Injuries Specified In Schedule I (D) Where Temporary Disablement, Whether Total Half Monthly Payment Equal To 25% Of The Or Partial Results From The Injury Monthly Wages Of The Workman.

This Half-Monthly Payments Are Payable For A Period Of 5 Years Or As The Disablement Exits, Whichever Period Is Shorter. Explanation I Any Payment Of Allowance Made By The Employer Towards Medical Treatment Cannot Be Set Off Towards Compensation Payable By Him Under The Act In Addition To Compensation The Employer Shall Also Pay A Sum Of Rs. 1000/- Towards Funeral Expenses To The Eldest Surviving Dependant Of The Deceased Workman Or In His Absence To The Person Who Incurred The Expenditure.

Compensation When Clue And Penalty For Default Compensation Becomes Due Whet, Tine Accident Occurs Resulting In Injuries /Death And The Employer Is Bound To Make Payment To The Worker Or Deposit The Sum With The Wc Commissioner. If The Amount Is Not Paid Within One Month From The Date It Fell Dime Time Commissioner Cant Direct Further Some Not Exceeding 50% Of The Compensation Amount Together With Interest @ 12% Shall Be Recovered From The Employer By Way Of Penalty. In Case Of Death, The Compensation Should Be Deposited Distribute The Amount To His Legal Heirs. With The Commissioner Who Will

Notice And Claim


Employer Has To Give Notice Of Accident To The Commissioner Within 7 Days And The Workman/His

Representative Prefer The Claim Before The Commissioner Within 2 Years Form The Date Of Death Or Accident. The Commissioner May Entertain The Claim Even If There Is Any Delay. Contract Any
Contract

Or Agreement Whereby A Workman Relinquish His Right To Compensation Under The No. 7

Act, Shall Be Null And Void. Appeals An Appeal Small Lie To The High Court From An Order Passed By The Commissioner Awarding The Compensation Inadequate Compensation Or Disallowing The Claim.

Industrial Employment (Standing Order) Act, 1946


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Object:- To Require The Employers To Define With Sufficient Precision The Conditions Of Employment And To Make The Said Conditions Known To The Workmen Employed.

Applies: 1. To All Industrial Establishments Wherein 100 Or More Workmen Are Employed Or Were Employed On Any Day Of Preceding 12 Months. 2. Appropriate Govt. May After Notification Apply This Act To Establishments Employing Less Than 100. Not To Apply 1. Bombay Industrial Relations Act, 946 2. M.P. Industrial Workmen (So.) Act 1961 (Except Estts. Under Control Of Central Govt.) 3. Fundamental And Supplementary Rules 4. Civil Services (C.C.&A) Rules. 5. Civil Services (Temp. Services) Rules. 6. Civil Services Regulations 7. Revision Leave Rules 8. Civilians In Defence Service (C.C.&A) Rules 9. Indian Rly. Establishment 10. Any Other Rules & Regulations Which The Ap Govt. In The Gazette Apply Submission : Within. 6 Months From The Date The Act Becomes Applicable, The Employer Has To Apply To Certifying Officer 5 Sets Of Draft Ii Standing Orders Proposed By Him For Adoption In His Establishment With Particulars Or Workmen Or Union. Conditions For Certification: 1. Inclusion Of All Matters In The Schedule 2. Conformity With Model Standing Orders 3. Conformity With The Provisions Of The Act 4. Fairness Of Reasonableness Of Standing Orders. Certification (Dy. Com. Of Labour) Copy Of Draft So Forwarded To Union Or Selected Representatives Calling For Objections Examination Of Certifiability Will Or Without Modification Passing Of Order Sending Copies To Parties.
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No. 8

Appeal :

Within 30 Days Order Final

Operation : Expiry Of 3o Days Certifying Officers Orders Expiry Of 7 Days Appellete Authoritys Order Exhibition : Main Entrance And Departments English & Vernacular
Duration :Interpretation & : Disputes Model S.Os : In Force, Unless Modified Expiry Of 6 Months For Modification, Unless An Agreement Between The Parties Same Procedure As Certification. Reference To Labour Court As Item No. 2 Of Second Schedule To I.D. Act Covers Application & Interputation Of S. Orders From The Date The Act Becomes Applicable To The Date Standing Orders Are Finally Certified M.S.O. Shall Be Deemed To Be Adopted. It Contains Matters To Be Provided In The Standing Orders

Schedule

No. 9

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