:: Chapter - 3 ::

Labour Welfare and

Labour Laws
 Chapter - 3
LABOUR WELFARE AND LABOUR LAWS

There are two inevitable consequences of the modem

factory system as given below:
1. It has made the workers powerless. They have no control
over the process and product oftheir labour. All decisions
concerning production are made by the ruling
entrepreneur.
2. It has made the job meaningless. Jobs have become so
much specialized that they require very little skill on the
part of workers and give them no opportunity to
demonstrate all the skills that they possess. They
experience their jobs as intrinsically dissatisfying and
monotonous.
These conditions when coupled with exploitative
management practices alienate the workers and lead them to revolt
against the existing social norms. Their self interest and careerism
increase and their dedication to work declines. This has made the
task of a personnel manager very challenging by bringing into sharp
focus the need for labour welfare. These measures operate to
neutralise the harmful effects of large-scale industrialisation and
urbanisation. They enable the workers to live a richer and more
satisfactory life.
The welfare measures also benefit the employer in
several ways many ofwhich are not subject to quantification. Among
these benefits are:
1. More effective recmitment (because these benefits add
to Job appeal):
2. Improved morale and loyalty;
3. Lower turnover and absenteeism.
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4. Good industrial relations;

5. Reduced influence of unions; and
6. Reduced threat of further government intervention.
It is doubtful whether labour welfare programmes
motivate workers to increased. According to Herzberg the factors
which motivate workers are increased responsibility, advancement,
growth, recognition, achievement and work itself. Labour welfare
cannot therefore, act as motivators. They can only prevent
dissatisfaction. They cannot increase satisfaction. There is evidence
to show that after some time these benefits, not being dependent on
performance, are taken for granted by the workers.
Labour welfare is one of the major determinants of
industrial relations. Encyclopaedia of social science defines welfare
work as "voluntary efforts of the employer to establish, within the
existing industrial system working and sometimes living and cultural
condition of the employers beyond what is required by law, the
customs of the country and conditions of the market." Royal
commission on labour defined "Welfare as one" which most
necessarily be flexible, elastic and differs widley with times, region,
industry and bearing a somewhat different interpretation in one
country from another, according to different social customs, the
degree of industrialisation and the educational development of the
worker. "Hence labour welfare is one ofthe major aspects ofnational
programmes towards improving the lot of labour and creating a life
and work environment of decent comfort for this class of society.
The object of welfare is one in which must can be done to combat
the sense of frustration of the industrial workers, to relieve him of
personal and family worries, to improve his health, to afford him a
means of self-expression, to offer him some sphere in which he can
excell, all others, to help him a wider perception of life.
I.L.O. Report refers with regard to labour welfare as
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"Such services facilities and amenities which may be established in

or in the vicinity of undertaking to enable the persons employed in
them to perform their work in healthy, congenial surroundings and
provided with amenities conductive to good health and high morale."
Labour welfare is a very broad term covering from social
security to such activities as medical aid, creches, canteens, recreation,
housing, adult education, arrangement for transport of labour to and
from work place to residence etc.
Need for Labour Welfare
The aim or object of welfare activities is partly
humanistic, to enable the workers to enjoy a fuller and richer life.
The relevance and necessity of welfare work in India, can be easily
realised if one observes the pitable working conditions of workers
in this country. A stable and efficient labour force cannot be built up
without an improvement in the conditions of their life and work in
industrial centres. The development of community and society
depends only on the development of labours. The importance of
labour welfare work is beyond the stage of debate and is recognised
as an integral part of industrial traditon in all industrially advanced
countries. Labour welfare is a vital part of business organisation
and management 'now-a-days' a attaches more importance to human
angle. It increases the productivity as well as productivity efficiency
of the workers and induces in them a new spirit of self-realisation
and consciousness. Welfare activities can go a long way in keeping
the workers contented. The need for labour welfare was strongly
felt by Royal Commission on Labour as far back as 1931, when the
Royal Commission on Labour stated, "The benefits, which go under
this nomeclature are of great importance to the worker and which he
is unable to secure by himself. The labour welfare scheme may be
regarded as a wise investment. The worker should at least have the
means and facilities to keep himself in a state of health and efficiency.
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The working condition should be such as to safeguard his health and

protect him against occupational hazard." In May 1944, in
Philadelphia Declaration, the International Labour Organisation
stated that "The war against want requires to be carried on with
unrelenting vigour within each nation, and by continuous concerted
international effort in which the representative of workers and
employers enjoying equal status with those of Government
representatives."
Indian National Congress in its Karachi resolution stated
that state shall safeguard the interest of industrial workers and shall
secure them by suitable legislation, the living wage, healthy working
conditions of work, limited hours of work, suitable machinery for
settlement of disputes between employers and workmen and
protection against old age, sickness and unemployment. Anything
done for intellectual, physical, moral and economic betterment of
the workers, whether by employers, by government or by other
agencies over and above what is laid down by laws of the land, is
labour welfare.
Labour welfare work has its beneficial efforts on the
workers. The welfare measure influence the sentiment of the workers
and contribute to industrial peace. The aims of labour welfare are to
provide facilities and amenities which enable the workers employed
in industries to perform their work in healthy, congenial surrounding
conducive to good health and high morale beside other factors such
as:
(i) Humanistic - To enable the worker to enjoy fuller and richer
life.
(ii) Economic - To improve the effiency of worker.
(iii) Civic - To develop a sense of responsibility and dignity
among the workers.
The need for labour welfare was emphasised in the free
India by the Constitution which laid down the following Articles in
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this regard -
Article 32 - The state shall make effective provision for
securing the right to work, to education and to public assistance, in
case of unemployment, old age, sickness, disablement, and other
cases ofundeserved want.
Article 33 - The state shall make provision for securing just
and human conditions of work and for maternity relief.
Article 39 - The state shall, in particular, direct its policy
towards securing;
(a) That the citizens, men and women equally, have the right
to an adequate means of livelihood;
(b) that the ownership and control of the material resources
are so distributed as to subserve the common good;
(c) that the operation of the economic systems does not result
in the concentration of wealth and means of production
to the common detriment;
(d) that there is equal pay for equal work for both men and
women; and
(e) that the the health and strength of workers, men and
women; and the tender age of children are not abused
and that citizens are not forced by economic necessity to
enter a vocation unsuited for their age or strength.
Article 41 - The state 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 other cases of
under-served wants.
Article 42 - The state shall make provision for securing just
and humane conditions of work and for maternity relief.
Article 43 - The state 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
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condition of work ensuring a decent standard of life and full

employment of leisure and social and cultural opportunities and, in
particular, the state shall endeavour to promote cottage industries
on an individual or co-operative basis in rural areas.
Article 43 - A- The state shall take steps, by suitable legislation
on in any other way, to secure participation of workers in the
development ofundertakings, establishments or other organizations
engaged in any industry.
The welfare of the labouring classes must be one of the
first cares of every employer. The betterment of workers' conditions
must proceed more from the employers down rather than be forced
up by demands from below. It is so important because if the labour
is antented, well housed, well fed, well looked after, it is not only an
asset to the employer but serves to raise the standards of industry
and labour in the country. Labour welfare activities are the useful
adjunct to motivational approach and help in maintaining positive
attitude towads the job and the organisation. Therefore, welfare is
also fundamentally in the interest of larger society as the health,
happiness and efficiency of each individual connotes the general well
being of all. The concept of welfare is dynamic in nature and vary
from country to country and from time to time and even in the same
country depending upon its value system, social institution, degree
of industrialisation and general level of social and economic
develoment, According to Fredric Engels." Labour is the source of
all wealth. It is next to nature, which supplies it with the material
that it converts into wealth. But it is even definitely more than this."
Thus labour welfare is the basic condition for all organisations.
To achieve the above ends, several committees and
commissions recommended certain measures which in due course
turned out to be labour laws.
Labour Laws
The term 'Labour Law' refers to that body of laws which
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are enacted to protect and promote the interests of the working class
in society. Labour laws comprise all those laws by which relationships
between employers and employees are governed.
Labour Laws are the outcome ofthe particular conditions
and circumstances of each country viz. history, traditions, economic
and social structure and political orientation. All labour laws aim at
ensuring steady growth in the minimum standards of working
employment and living conditions for workers and maintaining
minimum industrial peace and cordial relations between employers
and workers.
Labour laws deal with the employment, wages, working
conditions, industrial relations, social security, labour welfare etc.
Labour law aims at establishing a harmonious relationship between
the employees and the employers and to strike a right balance between
capital and labour.
It must be emphasized that it is erroneous to use the
term Industrial Laws as synonymous to labour law. Industrial Law
comprises of all statutes and case law pertaining to industry. Hence,
it comprises not only laws affecting labour but also laws concerned
with corporate management and taxation. Labour Law consitutes an
important part of industrial law. Labour laws can be grouped as
follows :
1. Laws regulating working conditions.
2. Laws regulating industrial relations.
3. Laws regulating wages and bonus.
4. Laws regulating social security measures covering
maternity, sickness, occupational disease, payment of
gratuity, provident fund and family pension.
5. Laws regulating training, covering apprentices act,
employment exchanges, compulsory notification of
vacancies act.
6. Laws regulating welfare and living conditions.
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Labour Legislation
The aim or object of labour legislation is partly
humanistic to enable the workers to enjoy a fuller and richer life and
to encourage the employers to work in the development of nation.
Both employers and workers are partners in industry and in the process
of national development. Individual employers as well as the
community as a whole are under an obligation to protect the well
being of labour. A stable and efficient labour force, therefore, cannot
be built up without an improvement in the conditions of their life
and work in industrial centres. Workers must be given their due share
in the gains of economic development. If the employer had given
due recognition to workers as human beings and had cared to ensure
them fair deal, the Government would not have intervened to make
the employers realise their obligation towards the labours. Labour
legislation helps to maintain industrial peace which is essential for
increasing productivity and prosperity. It is also designed to improve
the service conditions of workers by providing for them ordinary
amenities of life. It also seeks to ensure the workers, who cannot
bargain on equal terms, a fair return for their labour.
Labour legislation is a continuous process of growth
which adopts to the changing conditions of society. Labour legislation
is that body of legal enactments and judicial principles which deals
with emloyment and non-employment, wages, working conditions,
industrial relations, social security and labour welfare of industrially
employed persons. Labour legislation is the expression of the feelings
of the people and gives practical shape to current human and social
values prevalent in the community.
Labour legislation in India have been framed with a view
to safeguard the interest of employees and the employers. It is that
paramount effort of the community which granted a real equality to
workmen. Labour legislation now covers practically all aspects of
employment, working and living conditions of industrial and
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commercial workers. Labour legislation is an integral part of modem

society and has come into existence through the process of Industrial
Revolution.
Labour legislation helps in training work force in
industrial discipline, political, solidarity and social ethics. It should
be based on the principles of social justice and social equity. Social
justice implies to following areas :
(1) Equitable distribution of profits and other benefits of
industry between employer and employees.
(2) Providing protection to the workers health, safety and
morality.
Labour legislation is one of the, most progressive and
dynamic, instruments for achieving socio-economic progress and
justice which is guaranteed by our constitution. Labour legislation
is that part of State's action by which the State, through parlimentary
enactments has intervened in the conduct of industry and imposed
statutory obligations on the employers and on the workmen.
Objectives of the Labour legislation
Following are the main objectives of labour legislation

1. to protect the workers from exploitation;

2. to promote the cardial relationship between the employers
and employees;
3. to protect health, safety and welfare of workers by
regulating conditions of work and providing the welfare
and social security to worker;
4. to reduce frequent breaks due to strikes and lock - outs;
Need for labour legislation
The need for labour legislation arises from the following
reasons:
1. to protect workers in industries from certain risks,
hazardous conditions and from work at odd hour;
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2. to protect women and children from exploitation;

3. the industrial workers are economically weak. They are
not in a position to bargain with the employer to secure
proper wages and working conditions. Legislation aims
to protect labour against unhygienic conditions ofwork;
low wages, unduly long hours of work and other forms
of exploitation;
4. to encourage and facilitate the formation of trade unions
and workers associations;
5. maintaning good relations between the two partners in
industry.
6. strikes, lockouts and other industrial disputes lead to loss
of production and national income. Labour legislation
helps to maintain industrial harmony and peace and
therefore, contributes to the development of the country;
7. labour legislation keeps good relations between the two
partners employees and employers. Labour legislation
helps to protect the interests of labour;
8. workers get injured and even die in the course of
employment. Labour legislation is required to provide
reasonable compensation to such workers. Legislation
pertaining to welfare and social security serves this
purpose.
Labour Laws Awareness
Labour law awareness means, how for the workers are
acquainted with the various labour laws, when the workers are in
know ofthe various labour laws, there is a minimum conflict between
the management and workers in an organisation. Furher, management
cannot deprive the workers from the benefits/facilities/ amenities
due to them statutorily as per various labour laws and will be forced
to implement the various statutory requirements. During collective
bargaining, workers can bargain more effectively if they are aware
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of provisions of various labour laws.

Awareness of labour laws among workers is of
paramount importance in discharging their duties efficiently,
effectively and whole heartedly. The complete awareness of labour
laws among workers will foster friendly relations with the
management and workers help in the following:
(1) Provide the workers with an overall organisational point
of view.
(2) Decrease the amount of conflict and hostility.
(3) Helping in removal of grievances and increase in the
degree of tolerance and patience in the organisation.
(4) Increase in the degree of cohesiveness and team sprit.
(5) Increasing openness among the workers and management
thereby giving a free expression of individual personality
existence.
(6) Developing a work climate as a result of other tendencies,
in which work force find opportunity to be more creative.
(7) Would help in upgrading individual's mental and
emotional involvement in a group situation that
contribute to group goals and to share responsibility on
equitable basis.
The awareness of social security measures and labour
laws have acquired momentum from the labour movement.
Participation of workers is the main media through which the
awareness of social security and labour laws is awakened. The
philosophy of participation contains following three important
concepts:
(1) Participation should mean mental and emotional
involvement of an individual rather than his skill.
(2) It should motivate for contribution.
(3) It should encourage individuals to accept responsibilities
for an activity. Participation will involve all the members
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of the group who would like to see that the system work
more successfully so as to involve an individual.
Labour laws occupies a distinct place in the Judicial
system of our country. Labour laws aim at safeguarding the interests
ofthe workers and establishing good relations between the employees
and employers. All laws passed by the states from time to time for
achieving their objectives come within the purview of labour
legislation.
Constitutional Framework of Labour Legislation
Indian constitution serves as the most important basis
for labour laws in our country. Labour legislation in India is designed
to fulfil the pledge and ideology enshrined in the Indian constitution.
The Fundamental Rights and Directive Principles of state policy
enshrined in our constitution provide guidelines for labour
legislation in the country.
Fundamental Rights
The constitution of India has guaranteed some
fundamental rights to all the citizens of the country, some of these
are:
(i) The state shall not deny to any person equality before the
law or the equal protection of laws.
(ii) There shall be equality of opportunity to all citizens in
matters relating to employment or appointment to any
office under the state.
(iii) All citizens will have the right to form associations or
unions.
(iv) People will have freedom of speech and freedom of
assembly.
(v) All citizens have the freedom to practise any profession.
(vi) No discrimination will be made on grounds of religion,
race, caste, sex or place of birth.
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(vii) All citizens enj oy protection of life and personal liberty.

(viii) People have the right to be protected against exploitation.
(ix) Article 24 of the constitution specifically provides that
no child below the age of 14 years shall be employed to
work in any factory or mine or engaged in any other
hazardous employment.
Individuals can enforce the Fundamental Rights in courts.
Any law which contravenes a Fundamental Right can be decalred by
the appropriate court to be void. Labour is in the concurrent list on
which both the centre as well as states have the power to make laws.
In case of any repugnancy between the union and the state legislation,
naturally the legislation of the union shall prevail.
Directive Principles of State Policy
The Directive Principles which are relevant to labour
legislation are following:
(1) Article 3 8 lay s that the state shall strive to promote the
welfare of the people by securing and protecting as
effectively as it may a social order in which there is
economic, social and political justice for all.
(2) Article 39 lays down the basic philosophy ofthe ideal of
democratic socialism which is enshrined in the preamble
of Indian constitution and which is the motivating force
behind the Directive Principles. It states that the state
shall direct its policy towards securing:
(a) that the citizens, men and women, equally, have the right
to an adequate means of livelihood;
(b) that the ownership and control of the material resources
of the community are so distributed as best to subserve
the common good;
(c) that the operation of the economic system does not result
in the concentration of wealth and means of production
to the common detriment;
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(d) that there is equal pay for equal work for both men and
women;
(e) that the health and strength of workers, men and women,
and the tender age of children are no abused and that
citizens are not forced by economic necessity to enter
vocations unsuited to their age or strength;
(f) that childhood and youth are protected against
exploitation and against moral and material abandonment;
(3) Article 3 9 - A provides that the state shall secure that the
operation of the legal system promotes justice, on a basis
of equal opportunity and shall, in particular, provide for
legal aid, by suitable legislation or schemes or in any
other way, to ensure that opportunities for security justice
are not denied to any citizen by reason of economic or
other disabilities.
(4) Article 41 lays down that the state shall make effective
provision for securing the right to work, to education
and to public assistance in case of unemployment, old
j
age, sickness and disablement and in other cases of
undeserved want.
(5) Article 42 lays down that the state shall make provision
for securing just and humane conditions of work and
for maternity relief.
(6) Article 43 provides that the state 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 decent standard of life and full enjoyment of
leisure and social and cultural opportunities and, in
particular, the state shall endeavour to promote cottage
industries on an individual or co-operative basis in rural
areas.
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(7) Article 43 - A lays down that the state 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.
(8) Article 46 mentions that the state shall promote with
special care the educational and economic interests of
the weaker sections of the people and, in particular, of
the scheduled casts and the scheduled tribes and shall
protect them from social injustice and all forms of
exploitation.
(9) Article 47 describes that the state shall raise level of
nutrition and the standard of living and improve public
health and small endeavour to bring about prohibition
of the consumption (except for medicinal purposes) of
intoxicating drinks and of drugs.which are injurious to
health.
(10) Articles 48 lays down that the state shall endeavour to
organise agriculture and animal husbandry on modem
and scientific lines.
Principles of labour legislation
The fundamental principles on which legislation is based
are as follows:
(1) Social Justice
Our constitution enshrines the concept of social justice
as the basic objectives of state policy and action. The tune of social
justice is most vibrant in industrial jurisprudence. The concept of
social justice is dynamic. In dispensing social justice, the general
and overall interests of society as a whole have to be taken into
consideration so as to prevent hampering of one group in society at
the cost of the rest. In matters of claims of labour the principle is
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that the employer and the employees are so interested and dependent
on each other that it is in the interest of each that the other should
survive, and it is in the interest of society that both should be kept
functioning in harmony with each other. It is for the good of both,
the employer should be made to help employee to keep himself alive
and fit to work.
(2) Social and Economic Justice
Social and economic justice provide definite standards
to be adopted in labour legislation. One of the Directive principles
of state policy enshrined in Article 38 in our constitution requires
that a state shall strive to promote the welfare of the people by
securing and protecting as effectively as it may a social order in
which justice, social, economic and political - shall inform all the
institutions of, national life. The Government is invested with the
power of changing the law. It can make rules regarding certain
specified matters to enforce the law. The Government may modify
or amend the law to suit the changing circumstances. Such legislation
is based on the principle of Social Justice.
(3) National Economy
The general economic situation of the country is another
principle on which labour legislation is based. In constructing a wage
structure, industrial adjudication takes into account to some extent
considerations of right and wrong, prosperity and improsperity,
fairness and unfairness. It is because of this socio-economic aspect
of the wage structure that industrial adjudication postulates that no
employer can engage industrial labour unless he pays basic minimum
wage. It is the duty of the society and the welfare state to assure to
every workman engaged in industrial operations the payment of
minimum wages, compensation and provide safety etc. determined
by state of national economy at any particular point of time.
(4) Social Justice and Labour Laws
The development and growth of industrial law has taken
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place side by side to the development and growth of constitutional

law. The International labour organisation has done commendable
work to develop uniform standards of labour legislation among the
member countries. Whenever, there is a conflict between citizen's
fundamental right to hold property and restriction sought to be
imposed upon that right in the interest of the general public. Courts
take the precaution of confining their decison to the points raised
before them only. They do not lay down undually broad and general
propositions. Similarly, in the case of individual adjudication the
claims of the emloyers based on the freedom of contract have to be
adjusted with the claims of industrial employees for social justice.
Although, the process of making a reasonable adjustment is not
always easy yet it is essential. Industrial adjudication has necessarily
to be aware of the current socio-economic thought around. It must
recognize that in the modem welfare state healthy industrial relations
are a matter of paramount importance. The essential function of
industrial adjudication is to assist the state of helping a solution of
industrial disputes which constitute a distinct and persistent
phenomenon of modem industrial states. In attempting to solve
industrial disputes, industrial adjudication does not and should not
adopt a doctrine approach. It must evolve some working principles
and should generally avoid formulating or adopting abstract
generalisations.
Classification of Labour Laws
A large number of labour laws have been enacted in India.
These laws may broadly be classified as follows :
1. Laws on Compensation
(a) The payment of wages Act, 1936.
(b) The minimum wages Act, 1948.
(c) The payment of Bonus Act, 1965
(d) The Equal Remuneration Act, 1976
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2. Laws on Working Conditions

(a) The factories Act, 1948
(b) The shops and Establishments Act, 1957
(c) The contract labour (Regulation and Abolition) Act,
1970
(d) The Mines Act, 1952
(e) The Plantation Labour Act, 1951
3. Laws on Industrial Relations
(a) The Industrial dispute Act, 1947
(b) The Trade Union Act, 1926
(c) The Industrial Employment (Standing Orders) Act,
1946
4. Laws on Social Security
(a) The workmens' Compensation Act, 1923
(b) The Employees' State Insurance Act, 1948
(c) The Employees' Provident Fund Act, 1952
(d) The Payment of Gratuity Act, 1972
(e) The Maternity Benefit Act, 1961
5. Miscellaneous Legislations
(a) The collection of statistics Act, 1953
(b) The Apprentices Act, 1961
(c) The Employment Exchanges Compulsory
Notification of Vacancies Act, 1959.
The Rules, Subrules, Orders and Directions used by
Transport Corporation (U.P.)or Undertakings under its control or
Employees for discharging their duties are as follows :
1. Apprentice Act, 1961
2. Contract Labour (Regulation and Abolition) Act, 1970
3. E.P.F. Act, 1952
4. E.S.I. Act, 1948
5. Factories Act, 1948
6. Industrial dispute Act, 1947
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7. Maternity Benefit Act, 1961

8. Minimum Wages Act, 1948
9. Motor Transport Worker Act, 1961
10. Payment of Gratuity Act, 1972
11. Payment of Wages Act, 1936
12. Trade Union Act, 1926
13. Workmens'Compensation Act, 1923
14. Weekly Holidays Act, 1942
15. F atal Accident Act, 1855
16. Persons with disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1955
17. U.P.S.R.T.C. Employees Service Regulation 1981 (Other
than Officers)
1. Apprentice Act, 1961
The Scheme of apprenticeship training was introduced
to keep ready trained workforce to meet the requirement of gradual
industrial expension. According the Act an apprentice is a person
who is undergoing apprenticeship training in pursuance of a contract
of apprenticeship.
Apprenticeship training is a course of training in any
industry or establishment undergone in pursuance of a contract of
apprenticeship and under prescribed terms and conditions which may
be different for different categories of apprentices. The object of the
Act is to provide for the regulation and control of training of
apprentices.
A person shall not be qualified for being engaged as an
apprentice to undergo apprenticeship training in any designated trade
unless he-
(a) is not less than fourteen years of age.
(b) Satisfies such standards of education and Physical fitness
as may be prescribed.
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2. Contract Labour (Regulation and Abolition) Act, 1970

This Act came into force on 10th February 1971. The
purpose of the act is to regulate the employment of contract labour
in certain establishments and to provide for the abolition in certain
circumstances. Act applies to whole of India and to every
establishments in which 20 or more workers are employed or were
employed on any day during preceeding twelve months as contract
labour. Act applies to every contractor who employs or who employed
20 or more workmen on any day of the preceeding 12 months. It
does not apply to establishments in which work only of an intermittent
or casual nature is preformed.
3. Employees' provident Funds Act, 1952
The Employees' Provident Funds Act was passed for
creating provident funds for the employees in the factories and other
establishments.
The object of the act was to make some financial
provisions for the future of the industrial workers after they retire
or for their dependents in case of their early death. Thus, the Act
provides for the institution of provident funds for employees in
Factories and other establishments. The Act extends to the whole of
India except the State of Jammu and Kashmir. The Act, subject to
the provisions contained in Section 16, shall apply -
(a) to every establishment employing 20 or more persons;
(b) to any other establishment employing 20 or more which
the central Government by notification may specify. The
Act shall continue to apply even after the number of
workmen falls below 20. The provision of the Act shall
be made applicable to any establishment if the employer
and majority of the workmen agree. To provide for
institution of Provident Fund, Family pension Fund and
Deposit - linked Insurance Fund in factories and other
establishments. Act was passed for creating Provident
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Funds for the employees or to make some financial

provisions for the future of Industrial Workers after their
retirement or for dependents in case of their early death.
Employees’ State Insurance Act, 1948
Industrial workers everywhere have been exposed to. the
problem of interruption of incomes due to sickness, disablement,
maternity, old age, unemployment etc. Till a satisfactory provision
is made to meet these contigencies, workers suffer from a fear of
economic insecurity and when any of these contigencies takes place
to any serious extent they and their family have to face serious
hardship and sometimes are reduced to starvation level. The risk of
the economic insecurity cannot be adequately met on individual or
family basis, in economically advanced countries provision for these
risks has been made on a collective basis through compulsory social
insurance scheme. In India the Employee State Insurance Act, 1948
is the outcome of such a policy to provide a remedy for the widespread
evils arising out of the consequences of national poverty caused by
want, disease, dirt and ignorance. The Employees State Insurance
Act, 1948 provide for certain benefits to employees in case of
sickness, maternity and employment injury and to make provisions
for certain other matters in relation there to. Freedom from economic
fear is a great freedom and all social security legislation attack this
fear and seek to annihilate it. It is the function of an ideal welfare
state to give every citizen the opportunity of earning his livjng and
freedom from fear of economic ruin which can involve physical and
even moral ruin. The benefits covered by the provisions of the
Employees' Insurance Act attack this fear and seek to remove it. The
Act provides the following benefits to the insured persons -
(i) Medical Benefit.
(ii) Sickness Benefit.
(iii) Disablement Benefit.
(iv) Maternity Benefit.
 [82]

(v) Dependence Benefit.

5. Factories Act, 1948
A factory worker spends about 3/4th of his life in a
factory hence he has every right to demand better working conditions,
adequate safety measures, welfare measures and better working
conditions.
This Act came into force on April 1,1948. It applies to
factories all over India. The object of passing the Factories Act was
to consolidate and amend the law regulating labour in factories. It is
a landmark in the history of labour legislation in India. The Supreme
Court of India has declared it as a social enactment to achieve social
reforms. It is a comprehensive piece of legislation covering all aspects
regarding the factories viz., approval, licensing, registration of
factories, inspecting authorities under the act and all other aspects
relating working conditions, adequate safety, sanitation, health,
working hours, leave with wages and weekly holiday for workers
employed in manufacturing establishments. The act is a protective
legislation. It also regulates employment of women and young
persons in factories.
6. Industrial dispute Ac^l 947
It came in force on 1st April 1947. The main object of
the Act is "to make provisions for the investigation and settlement
of industrial disputes and for certain other purposes."1 It seeks to
prevent industrial strikes to maintain industrial peaceyto promote
industrial harmony and to ensure social justice. The ultimate object
is to help the industrial progress and economic growth ofthe national
economy. The main object of the act may be stated as follows:
(a) to provide a suitable machinery for the just, equitable
peaceful settlement of industrial disputes through
arbitration, conciliation and adjudication.

1. Preamble to the Act.

 [83]

(b) to prevent illegal strikes and lockouts.

(c) to promote measures for securing and preserving amity
and good relations between the employers and employees.
(d) to provide relief to workmen against layoffs,
retrenchment, wrongful dismissals and victimisation.
(e) to promote collective bargaining, and
(f) to ameliorate the conditions of workmen.
7. Maternity Benefit Act, 1961
This Act was enacted in 1961. It regulate the employment
of women for certain periods before and after child-birth and provide
maternity benefit and certain other benefits to them.
8. Minimum Wages Act, 1948
This Act was passed to prevent the exploitation ofworkers
through payment of very low or sweating wages. It is a landmark in
the history of labour legislation in the country because it recognises
that wages cannot be left to be fixed by market for as alone. The act
gives statutory recognition to the principle that an employee in certain
employments must get at least a minimum wage. The object of the
Act is to secure the welfare of workers in a competitive market by
fixing the minimum rates of wages which would provide for their
subsistence and preserve their efficiency. The Act is designed to
implement the Directive Principles of State Policy as laid down in
Article 43 of the constitution of India.
9 payment of Gratuity Act, 1972
Gratuity was an ex-gratia or voluntaiy payment made by
an employer to his employees who retired after long and dedicated
services. It was given to the workers as a retirement benefit. The
payment of Gratuity Act, 1972 came into force on 16th September,
1972. The Act is designed to provide for a Scheme for the payment
of gratuity to employees engaged in factories, mines, oil fields,
plantations, ports, railways, shops or. other establishments.
 [84]

10. Payment of Wages Act, 1936

This Act came into force on 28th March 1937. This is a
protective piece of labour legislation. It seeks "to regulate the payment
of wages to certain class ofpersons employed in industry." The main
object of the act is to ensure payment of wages on due date and
without undue deductions. In order to ensure timely payment of
wages, the act regulate the manner of payment of wages at regular
intervals. It lays down permissible deductions to protect the employed
persons against arbitrary or unauthorised deductions being made from
their wages. The Act safeguards the wages of workers by -
(a) ensuring regularity of payment.
(b) ensuring payment in legal tender.
(c) preventing arbitrary deductions.
(d) Preventing imposition of arbitrary fines.
(e) Providing remedy to the workers against irregularities
in wage payments.
The act is applicable to the whole of India. It covers
persons employed in any factory and upon any railway or by a person
(contractor) fulfilling a contract with a railway administration. The
state Governments are empowered to extend the application of the
act to persons employed in any industrial establishment or in any
class or group of industrial establishments.
11. Trade Union Act, 1926
The Act came into force on June 1,1927. The main object
of the Act is to provide for the registration of trade unions and
verification of the membership of the trade unions so registered so
that they may acquire a legal and corporate status. As soon as a trade
union is registered it is treated as an artificial persons in the eyes of
lay/ capable of enjoying rights and discharging liabilities like a natural
person.
The Act makes provision for
 [85]

(a) Conditions governing the registrations of trade unions.

(b) obligations of a registered trade union.
(c) Rights and liabilities of a registered union.
The act grants immunity to the members and officers of
a registered trade union from civil and criminal liability in respect
of legitimate trade union members.
It extends to the whole of India. The Act applies not only
to the unions of workers but also to the associations of employers.
12. Workmens’ Compensation Act, 1923
This Act provides for the payment by certain classes of
employers to their workmen of compensation for personal injury by
accident. The main purpose of the workmens' compensation Act is
to provide some means of livelihood for the workman, who, by reason
of accidental injury arising out of his employment, has suffered a
loss of earning capacity. The Act provides for cheaper and quicker
disposal of disputes relating to compensation through special
tribunals than possible under the civil law. The Act extends to the
whole of India and came into force on the first day of July 1924.
The law is applicable to workmen employed in factories, mines,
docks, railways, ships, construction or maintenance of buildings etc,
but not applicable in those areas which are covered under Employees'
State Insurance Act. The need for enactment had arisen due to the
growing complexity of industry in this country with the increasing
use ofmachinery and equipment along-with the comparative poverty
of workmen should be protected from hardship arising from accident.
Prior to the introduction of workmens' compensation Act 1923, the
employer was liable to compensation for injury of workmen only if
the employer was proved guilty of negligence, but the Act makes it
possible for the workmen to get the compensation for injuries,
unimpeded by the legal obstacles set up by the law of torts.
The powers to extend the provision of this act lie with
the State Government. ✓
 [86]

13. Motor transport Workers Act, 1961

The Act aims to provide for the welfare ofmotor transport
workers and to regulate the conditions oftheir work. The Act extends
to the whole of India except Jammu and Kashmir. The Act applies to
every motor transport undertaking employing 5 or more motor
transport workers. The Act requires that every motor transport
undertaking coming within the purview of the act shall have to be
registered under the Act.
14. U.P.S.R.T.C. Employees Service Regulation 1981 (Other
yfhan Officers)
These regulations may be called the Uttar Pradesh Road
Transport Corporation Employees (Other than Officers) Service
Regulation, 1981. They shall come into force with effect from the
date of their publication in the Official Gazette. These regulations
shall apply to all the employees (other than officers) except those
who are working.
(i) on deputation.
(ii) on contract.
(iii) as part - time.
The Uttar Pradesh State Transport Departmental
Employees (other than officer) Service is a Group 'C' and 'D' Service.
Workman t
It means a person (including an apprentice) employed in
any industrial establishment to do any skilled or unskilled mannual,
supervisory, technical or clerical work for hire or reward whether
the terms of employment be express or implied but does not include
any person.
(a) Who is employed in a managerial or administrative
capacity or
(b) Who being employed in a supervisory capacity, draws
wages exceeding five hundred rupees per mensem or
excercises, either by the nature of his duties attached to
 [87]

the office or by reason of the powers vested in him,

functions mainly of a managerial nature.
Temporary Employee
(a) In respect of 'Workman' means a person engaged for a
work job which is of an essentially temporary character,
or who is engaged temporarily as an additional workman
in connection with work/Job of a permanent character,
provided he has not been in continuous employment for
three months.
(b) in respect of any other person means an employee who
has been employed temporarily in or against a permanent
or temporary post and whose appointment is terminable
on one month's notice or pay in lieu there of in accordance
with the terms of appointment.
Scales of Pay
(i) The scales of pay admissible to persons appointed to
various category of posts in the service shall be such as
may be determined by the Board from time to time with
the prior approval of the Government.
(ii) An employee, who is directly recruited shall draw
minimum ofpay on the time scale, applicable to the post.
Provided that, in deserving cases, a higher starting
salary may be allowed by the Board and by the authority
empowered in this behalf.
(iii) Unless the Board otherwise directs, the pay on promotion
shall be fixed in accordance with the relevant rules
contained in Financial Hand Book.
Increament -
(1) An annual increment shall ordinarily be allowed to an
employee, in accordance with the provision of sub
regulation.
 [88]

(2) At the rate shown in the pay scale of an employee unless

the increment has been with hold as disciplinary measure
or at the efficiency bar.
(3) All the employees, whose increments are due in the
present system on the different dates of a calendar month,
will be granted increments on the first day of the month.
(4) If probation is extended, such extension shall not count
for increment unless the appointing authority directs
otherwise.
(5) The date of increment of an employee who has remained
off duty on account of extra ordinary leave, study leave
or any other similar leave, shall be correspondingly
shifted and the period of such leave shall not be counted
for the purpose of increment.
Efficiency Bar
(1) No employee shall be allowed to cross the efficiency bar
unless the appointing authority is satisfied that he has
worked diligently and to the best of his ability, his work
and conduct is found to be satisfactory and unless his
integrity is certified.
(2) For the purpose of efficiency bar, character roll entries
of five years immediately preceding the date on which
efficiency bar falls due and the report of work of the
immediate superior shall be taken into consideration.
(3) If on or before the due date of crossing the efficiency
bar, the employee is served with a charge-sheet or
disciplinary proceedings are initiated against him or he
is placed under supervision, decision in regard to
efficiency bar shall be taken only after seeing the result
of such proceedings/enquiry. The disciplinary
proceedings started after the due date or the pendency of
any enquiry shall have no effect on such efficiency bar.
 [89]

(4) The appointing authority or any other authority

empowered in this behalf shall review annually the cases
of employees held up at the efficiency bar with a view to
consider whether his performance has been such as to
entitle him to cross the Efficiency Bar.
(5) Where an employee, who was not allowed to cross an
efficiency bar, is subsequently permitted to cross the same,
his pay shall be fixed in accordance with the relevant
rules contained in Financial Handbook.
Advance Leave Salary
An employee, who is proceeding on sanctioned leave for
one month or more shall be entitled to advance leave salary to the
extent of 80% of the pay where the leave is such for which leave
Salary is admissible.
Pay on Combination of appointments
The corporation may appoint an employee to hold
substantively, as temporary measure or to officiate in, two or more
independent posts at one time. In such cases his pay will be regulated
as follows -
(a) The highest pay, to which he would be entitled, if his
appointment to one of the posts stood alone, may be
drawn on account of his tenure of that post.
(b) For each other posts he may draw such resonable pay, in
no case exceeding half the presumptive pay (excluding
overseas pay) of the post, as corporation may fix.
(c) If compensatory or sumptuary allowances are attached
to one or more of the posts, he will draw such
compensatory or sumptuary allowances as the
corporation may fix, provided that such allowances shall
' not exceed the total of the compensatory and sumptuary
allowances attached to all the posts. Provided that no
additional remuneration under this regulation will be
 [90]

admissible in cases in which the period during which he

holds charge of more than one post is less than one
month. In cases in which the period exceeds nine months
no additional remuneration will be admissible beyond a
period of nine months.
Retirement and Retirement benefits
An employee of Group !C' shall retire on attaining the
age of 58 years and that of Group 'D' shall retire on attaining the age
of 60 years.
Provided that if the date of retirement falls on or after
the second day of the month, the date of retirement shall be the last
day of month.
Compulsory and voluntary retirement
The appointing authority may at any time, by notice to
an employee (whether permanent or temporary), not being a
workman, require him to retire after he attains the age of fifty years
without assigning any person. Such employee may like wise by notice
to the appointing authority voluntarily retire at any time after attaining
the age of 45 years or after he has completed the qualifying service
of twenty years.
1. Pension and other retirement benefits
An employee of the corporation shall be entitled to
pension and other retirement benefits as follows -
(a) Employees Provident Fund or the General Provident
Fund, as the case may be.
(b) Gratuity in accordance with the payment of Gratuity Act,
1972 the relevant Government Rules, as may be
applicable.
(c) Amount due under Group Insurance Scheme, 1972.
(d) One free family pass in a year for journey within the
state.
 [91]

(e) A free family pass for his return to his home from the
place of posting at the time of retirement in case he does
not accept railway fare.
(f) Any other benefit that may be allowed by the corporation
from time to time.
2. Right of Leave
Leave cannot be claimed as ofright, when the exigencies
of the service so require, discretion to refuse, cut short or revoke
leave of any description is reserved to the authority empowered to
grant it.
3. Earning of leave and absence from duty
Leave is earned by duty only. Wilful absence from duty
after the expiry of leave may be treated as misconduct.
4. Prohibition from granting leave
Leave shall not be granted to an employee who is to be
dismissed or removed from service for misconduct or general in
efficiency if such leave will have the effect of post-phoning the date
of dismissal or removal or to any employee in respect of whose
conduct a departmental enquiry or is contemplated.
5. Causal Leave
An employee shall be entitled to casual leave, not
exceeding 14 days in a calendar year and not more than six days at
any one time.
6. Earned Leave
An employee shall earn leave at the rate of one - eleventh
of the period spent on duty. The maximum period of earned leave
amount to 180 days.
7. Leave on Private Affairs
An employee may also be granted leave on private affairs
not exceeding three hundred and sixty - five days in all during his
entire service.
 [92]

8. Extraordinary leave
Where no leave is admissible under these regulations
extra ordinary leave may be granted for a period not more than 180
days at a time and not exceeding three years during the entire service,
according to the status of the employees and nature of requirement
of leave as may be prescribed by the corporation from time to time.
9. Leave on Medical Certificate
An employee may be granted leave on medical certificate
not exceeding twelve months in all during his entire service only on
production of a medical certificate.
10. Maternity leave
It may be granted to a female employee by the competent
authority on full pay which she may be drawing on the date of
proceeding on such leave for a period which may extend. Such leave
shall not be granted for more than three times during the entire
service, including temporary service.
11. Study leave
It may be granted to an employee for the purpose of
undertaking studies of specialised nature or to undergo special
training in or outside India by the Board in case where such training
will be useful to the corporation when the employee returns after
the study leave.
12. Leave Salary
If an employee proceeds on earned leave, casual leave,
maternity leave, private affairs leave, and medical leave against the
limit of twelve months laid down in regulation, shall be entitled to
leave salary equal to pay drawn at the time of proceeding on such
leave. If an employee proceeds on extra-ordinary leave he shall not
be entitled to pay leave salary.
13. Encashment of leave on Superannuation
An employee shall be entitled to cash payment equal to
the amount of leave salary inlieu of earned leave due on the date of
 [93]

the super annuation on his retirement subject to the following

condition:
(a) The amount of leave salary will be limited to earned leave
not exceeding 180 days.
(b) The amount of leave salary thus sanctioned will be
payable on retirement and will be paid in one lump sum
in full settlement of the claim.
(c) The amount will be equal to the total of leave salary
admissible under the regulation for the earned leave and
dearness allowance calculated on the leave salary on the
rates applicable on the date of superannuation. No city
compensatory allowance or house rent allowance will
be payable. This regulation will not be applicable to such
employees as have sought voluntary retirement or who
have been retired compulsorily.
14. Cash payment in lieu of Leave due on the death of Employee
Cash payment in lieu of earned leave due shall in the
case of death of an employee, be made to the family of the employee
who would have been entitled to such payment on superannuation.
15. Encashment leave
An employee who is in the pay scale, the maximum of
which does not exceed Rs. 1000 or such amount as the Board may
determine from time to time on consideration of Government orders
in this regard, shall be entitled to encash 30 days leave in a year
subject to the condition that he has at least two months earned leave
to his credit and he surrenders 30 days earned leave while availing
30 days leave.
Miscellaneous
1. House Rent Allowance and city compensatory allowance
An employee shall be entitled to such house rent
allowance and city compensatory allowance as is allowed by the
State Government to its employees from time to time subject to
 [94]

approval by the Board.

2. Bonus/Ex-Gratia
An employee shall get annual bonus/exgratia of the rate
decided by the corporation subject to the provisions of payment of
Bonus Act, 1965, if applicable.
3. Medical Facility
(a) Medical benefits and facilities will be available to an
employee.
Provided that such employees are covered by the
employees State Insurance Scheme shall get this benefit
from the date of exemption is granted by the Government
from the operation ofthe Employees State Insurance Act,
1948.
(b) An employee shall be entitled to full reimbursement of
all cost of medicines and test charged by the authorised
medical attendant of the employee and the members of
his family in cases of serious diseases like Heart Attack,
Cancer, T.B. Asthama, Leprosy etc. on being certified by
the medical attendant authorised by the Board and
Subject to such regulations or directions as may be issued
by the Board.
4. Free Passes
(1) An employee shall be given free passes to travel in the
corporation's buses in the city area only his residence to
the place of work and vice versa. Passenger Tax shall be
borne by the employee.
(2) An employee shall enjoy the privillage of the two free
family passes and three P.T.O. family passes during a
calendar year.
(3) Free passes to the school children ofthe employees, shall
be given going to their school and back to their residence
in the city buses but the passenger tax shall be borne by
 [95]

the employee.
5. Legal Aid
If an employee is prosecuted in any court ofLaw in India
on account of any act done by him during the course of due discharge
of his official duty done in the interest of the corporation, he will be
given legal aid by the corporation subject to such regulations and
directions as may be issued by the Board from time to time.
6. Employees injured in accident to be treated on duty
If an employee is injured or disabled as a result of
accident while on duty he shall be treated on duty during the period
of medical treatment on being certified by the Medical Attendant or
the prescribed medical Authority. This period shall not exceed 30
days at a time.
7. Adjustment of a Disabled Member
If an employee has been certified by ChiefMedical Officer
of the District or a medical authority prescribed by the corporation
to have been incapacitated or disabled from discharging ofhis normal
duty due to any physical injury caused to him during the course of
his employment, the appointing authority may give him some other
suitable job for which he is eligible.
Provided that if an employee receives compensation in
accordance with law applicable to him the provision ofthis regulation
shall not apply.
8. Employment to the Dependent of an Employee Dying or
Incapacitated during service
In the event of death or permanent disability of an
employee while in service his son or any other member of his family
dependent on him may be appointed on a post in the service for
which he possess the prescribed qualification. The procedure for
recruitment contained in these regulations will not be applicable in
his case. If necessary the age limit and academic qualifications may
 [96]

also be relaxed.
7. Working time
No employee shall be normally required to work for more
than 8 hours in a day or for more than 48 hours in a week.
8. Holidays and Rest
An employee shall be entitled to holidays and rest in
accordance with Acts, Rules, Regulation or orders applicable to them.
9. Regulation of Other matters
Subject to the orders of the Board, in regard to matters
not covered by these regulations or any other regulations or orders
of the Boards issued from time to time, decision shall be taken in
conformity with the rules or orders applicable to the State
Government employee or issued under the authority of the State
Government as the case may be.

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