Comprehensive essay on the workmen’s compensation act, 1923 in India

The basis of Workmen’s Compensation Act, 1923 passed in March 1923 and was put into force on 1st July 1924 is that the State (Government)
cannot be a silent spectator to the suffering of the working class engaged in factories or establishments who are exposed to the various risks to
their limbs and lives. The Act is applicable throughout India except the State of Jammu & Kashmir. The Act does not apply to those areas which are
covered by the Employees’ State Insurance Act, 1948.
Amendments to the Act:
The Act was amended firstly in 1933 by the Workmen’s Compensation (Amendment) Act, 1933, secondly in 1938 by the Workmen’s Compensation
Amendment Act, 1938, thirdly in 1938 by the Workmen’s Compensation (Amendment) Act, 1938, fourthly in 1946, fifthly in 1959, sixthly in 1962 by
the Workmen’s Compensation (Amendment) Act, 1962 and then in 1984 by the Workmen’s Compensation (Amendment), Act, 1984. Now
amendments have been made by The Law Commission of India in 1989 and lastly by the Workmen’s Compensation (Amendment) Act, 1995.
Employer’s Liability for Compensation:
To make the employer pay compensation, the death or injury suffered by the workman must be consequence of an ‘accident arising out of and in
the course of his employment’ is dependent upon the following four conditions:
(1) The casual connection between the injury and the accident (i.e., personal injury is caused to workman while on work);
(2) The injury and accident caused during the course of employment;
(3) The probability tenable to reason that the work contributed to the causing of personal injury; and
(4) The applicant proves that it was the work and the resulting strain which contributed to or aggravated the injury.
Distribution of compensation. -
(l) No payment of compensation in respect of a workman whose injury has resulted in death, and no payment of a lump sum as compensation to a
woman or a person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by
an employer shall be deemed to be a payment of compensation: 
(2) Any other sum amounting to not less than ten rupees which is payable as compensation may be deposited with the Commissioner on behalf of
the person entitled thereto.
(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation deposited with him.]
(4) On the deposit of any money under subsection (1), as compensation in respect of a deceased workman] the Commissioner and shall, if he
thinks necessary, cause notice to be published or to be served on each dependent in such manners he thinks fit, calling upon the dependents to
appear before him on such date as he may fix for determining the distribution of the compensation. If the Commissioner is satisfied after any inquiry
which he may deem necessary, that no dependent exists, he shall repay the balance of the money to the employer by whom it was paid. The
Commissioner shall, on application by the employer, furnish a statement showing in detail all disbursements made.
(5) Compensation deposited in respect of a deceased workman shall, subject to any deduction made under subsection (4), be apportioned among
the dependent of the deceased workman or any of them in such proportion as the Commissioner thinks fit, or may, in the discretion of the
Commissioner, be allotted to any one dependent.

Essay on Factory Act, 1948:

Objectives:
The Factory Act, 1948 is one of the major central legislation designed to regulate the working conditions in the factories. The act has been enacted
primarily with the object of protecting workers employed in factories against industrial and occupational hazards.
For that purpose, it seeks to impose upon the employer certain obligations to protect the workers and to secure for them employment in conditions
conductive to their health and safety. This act also prevents haphazard growth of factories through the provisions related to the approval of plans
before the creation of a factory.
Applicability of the Act:
This act is applicable to the factories where in ten or more workers are working, or were working on any day of the preceding twelve months and in
which a manufacturing process is being carried on with the aid of power or twenty or more workers without the aid of power.
Scope and Coverage:
a. Regulates working conditions in factories.
b. Provides basic minimum requirements for ensuring safety, health and welfare of workers.
c. Applicable to all workers.
d. Applicable to all factories employing ten or more workers.
Salient Features of Factory Act 1948:
Some of the salient features of Factory Act 1948 are:
1. Health Provisions.
2. Safety Provisions.
3. Welfare Measures.
4. Working Hours.
5. Employment of Women and Young Children.
6. Annual leave provision.
7. Dangerous operations.
8. Accident and occupational diseases.
9. Penalties.
10. Obligations and rights of employees.
i) What is manufacturing process
Seshadrinatha Sarma, 1966 (2) LLJ 235, held that to constitute a manufacture there should not be essentially some kind of transformation of
substance and the article need not become commercially as another and different article from that at which it begins its existence so long as there
has been an indisputable transformation of substance by the use of machinery and transformed substance is commercially marketable.
Following processes have been held to be manufacturing processes:
(1) Sun-cured tobacco leaves subjected to processes of moistening, stripping, breaking up, adaption, packing, with a view to transport to companys
main factory for their use in manufacturing cigarette (V.P. Gopala Rao v. Public Prosecutor, AIR 1970 S.C. 66).
(2) The operation of peeling, washing etc., of prawns for putting them in cold storage is a process with a view to the sale or use or disposal of the
prawns (R.E.DSouza v. Krishnan Nair, 1968 F.J.R. 469).
(3) Stitching old gunny bags and making them fit for use.
(4) In paper factory, bankas grass packed into bundles manually and despatched to the factory.
(5) Work of garbling of pepper or curing ginger.
(6) Process carried out in salt works in converting sea water into salt.
(7) Conversion of latex into sheet rubber.
(8) A process employed for the purpose of pumping water.
(9) The work done on the bangles of cutting grooves in them which later would be filled with colouring, is clearly a stage in ornamentation of the
bangle with view to its subsequent use for sale.
(10) Preparation of soap in soap works.
(11) The making of bidies.
(12) The raw film used in the preparation of movies is an article or a substance and when by the process of tracing or adapting, after the sound are
absorbed and the photos imprinted, it is rendered fit to be screened in a cinema theatre, then such a change would come within the meaning of the
term treating or adapting any article or substance with a view to its use.
(13) The definition takes in all acts which bring in not only some change in the article or substance but also the act done for the protection and
maintenance of such article by packing, oiling, washing, cleaning, etc. (P.Natrajan v. E.S.I. Corporation (1973) 26 FLR 19).
(14) Preparation of food and beverages and its sale to members of a club (CCI v. ESIC, 1992 LAB IC 2029 Bom.).
(15) Receiving products in bulk, in packing and packing as per client’s requirements (LLJ I 1998 Mad. 406).
(16) Construction of railway – use of raw materials like sleepers, bolts, loose rails etc. to adaptation of their use for ultimately for laying down railway
line (LAB IC 1999 SC 407; Lal Mohmd. v. Indian Railway Construction Co. Ltd.).
Worker
“Worker” means a person employed directly or by or through any agency (including a contractor) with or without knowledge of the principal
employer, whether for remuneration or not, in any manufacturing process, or in any other kind or work incidental to, or connected with, the
manufacturing process or the subject of the manufacturing process but does not include any member of the armed forces of the Union. [Section
2(1)]
The definition contains following ingredients:
(i) There should be an ‘employed person’
(a) Meaning of the word “employed”: The concept of “employment” involves three ingredients, viz. employer, employee, and contract of
employment. The ‘employer’ is one who employs, i.e., one who engages the services of other persons. The ‘employee’ is one who works for
another for hire.
(ii) Employment should be direct or through some agency
The words directly or by or through any agency in the definition indicate that the employment is by the management or by or through some kind of
employment agency. In either case there is a contract of employment between the management and the person employed. There should be a
privity of contract between them and the management.
iii) Employment should be in any manufacturing process etc.
The definition of “worker” is fairly wide. It takes within its sweep not only persons employed in manufacturing process but also in cleaning any part of
the machinery and premises used for manufacturing process.
(iv) Employment may be for remuneration or not
A person who receives wages as remuneration for his services, a person who receives remuneration on piecework basis, a person may be working
as an apprentice, and a person who is a honorary worker, all come within the definition of a worker. Therefore, to be a worker, it is immaterial
whether a person is employed for wages or for no wages.
(v) Any member of the armed forces of the Union is excluded from the definition of worker
(vi) Whether all employees are workers?
Since the word employee has not been defined in the Act it follows that all the workers within the ambit of the definition under the Act would be
employees, while all employees would not be workers (Harbanslal v. State of Karnataka, (1976)1 Karnt.J.111). All persons employed in or in
connection with a factory whether or not employed as workers are entitled to the benefits of the Act (Union of India v. G.M. Kokil, 1984 SCC (L&S)
631).

Essay # 4. Payment of Wages Act, 1936:

With the growth of industries in India, problems relating to payment of wages to persons employed in industry took an ugly turn. The industrial units
were not making payment of wages to workers at regular intervals and wages were not uniform.
The industrial workers were forced to raise their heads against their exploitation. For the purpose of ensuring prompt and full payment of wages to
persons employed in industry, the Payment of Wages Act came into existence on 23rd April 1936. The Payment of Wages Act, 1936 is one of the
old enactments dealing with employer-employee relationship.
Objectives:
The Payment of Wages Act, 1936 has been enacted to ensure the fixation of wage period and that the payment of wages to the workmen are made
in time, without unauthorized deductions, in current coins and currency and in case of non-payment or unauthorized deductions, to enable the
workers to made a claim.
Applicability of the Act:
The Payment of Wages Act, 1936 is applicable to the persons employed in the factories and to persons employed in industrial or other
establishments specified in this Act.
Salient Features of Payment of Wages Act:
Some of the salient features of Payment of Wages Act 1936 are:
1. Wage Period and Date of Payment.
2. Authorized Deductions.
3. Maintenance of Registers and Records.
4. Appointment of Inspectors.
5. Complaints.
6. Claims.
7. Penalties.
8. Bar to Suit.
9. Contracting out.
1. Wage Period and Date of Payment:
Every person responsible for the payment of wages shall fix periods in respect of which such wages shall be payable. Wage period is not to exceed
one month. In an establishment where less than 1000 persons are employed, payment has to be made by 7th day of the next month otherwise by
10th day.
2. Authorized Deductions:
Deductions from the wages of an employed person shall be made only in accordance with the provisions of this act, and may be of the following
kinds only, namely fines, absence from duty, damage to or loss to goods in custody, house-accommodation, advance, recovery of loans, house-
building loan, income tax, order of court, payment to cooperative society; advance from provident fund, deduction authorized by the person
employed.
3. Maintenance of Registers and Records:
Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the
wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars. Every register and record
required to be maintained under this section shall be preserved for a period of three years.
4. Appointment of Inspectors:
The act also provides for appointment of Inspectors.
An Inspector may:
(a) Make examination and inquiry as he thinks fit in order to ascertain whether the provisions of this act made there under are being observed.
(b) Supervise the payment of wages to persons employed in any factory.
(c) Seize or take copies of such registers or documents or portions thereof as he may consider relevant in respect of an offence under this Act.
5. Complaints:
An employed person can make a complaint with regard to the non-payment or unauthorized deductions can be made to the labour inspector of the
area.
6. Claims:
This act provides appointment of commissioner for workmen’s compensation to hear and decide for all claims arising out of deductions from the
wages, or delay in payment of the wages.
7. Penalties:
For non-compliance of the provisions of the act, an employer can be fined from Rs.200 up to Rs.2000. For a subsequent office, the punishment is
minimum one month but may extend to six months imprisonment and with minimum fine of Rs.500, which may extend to Rs.3, 000. For a continuing
offence, additional fine of Rs.100 per day shall be imposed.
8. Bar to Suit:
Civil Courts are barred to entertain the suit for recovery of wages or of any deduction once a claim has been lodged with the authority under the act.
9. Contracting Out:
Any contract or agreement whether made before or after the commencement of this act, whereby an employed person relinquishes or reduce his
right to receive wages from his employer is null and void to that extent.

Essay # 5. Minimum Wages Act, 1948:

The concept of minimum wages was first evolved by ILO in 1928 with reference to remuneration of workers in those industries where the, level of
wages was substantially low and the labour was vulnerable to exploitation, being not well organized and having less effective bargaining power.
The need for a legislation for fixation of minimum wages in India received boost after World War II when a draft bill was considered by the Indian
Labour Conference in 1945. The minimum wages bill came into force on 15th March 1948.
Objectives:
The objective of minimum wages act is to prevent exploitation of labour; prevent employment of labour in the interests of general public and so in
prescribing minimum wage rates, the capacity of the employer need not be taken into account.
Applicability of the Act:
It extends to the whole of India and applies to scheduled employments in respect of which minimum rates of wages have been fixed under this act.
Salient Features of Minimum Wages Act:
Some of the salient features of Minimum Wages Act are:
1. Fixing of minimum Rate of Wages.
2. Payment of Minimum Rates of Wages.
3. Fixing of Working Hours, Overtime and Weekly Holidays.
4. Maintenance of Registers and Records.
5. Appointment of Inspectors.
6. Claims and Complaints.
7. Penalties.
8. Bar to Suit.
9. Contracting Out.
1. Fixing of Minimum Rate of Wages:
The act provides the fixation of minimum rates of wages payable to employees employed in a scheduled employment. The government may review
the minimum rates of wages so fixed at intervals not exceeding five years, and revise the minimum rates if necessary. The minimum rates of wages
may be fixed as a minimum time rate or a minimum piece rate or as a guaranteed time rate.
2. Payment of Minimum Rates of Wages:
The employer shall pay to every employee in a scheduled employment under him wages at the rate not less than the minimum rates of wages fixed
under the act without any deductions except as may be authorized within such time and subject to such conditions as may be prescribed in the act.
3. Fixing of Working Hours, Overtime and Weekly Holidays:
The act also provides for regulation of working hours, overtime, weekly holidays and overtime wages.
In regard to any scheduled employment in which minimum rates of wages have been fixed under this act, the appropriate government
may:
(a) Fix the number of hours of work, which shall constitute a normal working day,
(b) Provide for a day of rest in every period of seven days, which shall be allowed to all employees, and for the payment of remuneration in respect
of such days of rest;
4. Maintenance of Registers and Records:
The act provides for maintenance of registers and records by the employer giving particulars of employees employed by him, the work performed by
them, the wages paid to them, the receipts given by them and such other particulars and in such form as may be prescribed.
5. Appointment of Inspectors:
The act also provides for appointment of inspectors and defines their local limits within which they shall exercise their functions. An inspector may
enter at any premises or place where employees are employed or work is given out to out-workers in any scheduled employment in respect of
which minimum rates of wages have been fixed under this act for the purpose of examining any register and record of wages.
6. Claims and Complaints:
This act makes provisions to appoint authorities to hear and decide all claims arising out of payment less than the minimum rates of wages, or for
claiming wages for weekly offs or rest days or for wages at the overtime rate. The application should be presented to the competent authority
appointed under the act. A worker can make a complaint with regard to payment of less than the minimum wages or unauthorized deductions to the
labour inspector of the area.
7. Penalties:
Any employer who does not comply with any of the provisions of this act shall be punishable with imprisonment for a term, which may extend to six
months, or with fine, which may extend to Rs.500 or both.
8. Bar to Suit:
Civil Courts are barred to entertain the suit for recovery of wages once a claim has been lodged.
9. Contracting out:
Any contract or agreement, whether made before or after the commencement of this act, whereby an employee either relinquishes or reduces his
right to a minimum rate of wages is null and void.

Essay # 6. Employee State Insurance Act, 1948:

The Employee State Insurance act was promulgated by the Parliament of India in the year 1948. To begin with the ESIC scheme was initially
launched on 2nd February, 1952 at just two industrial centres in the country namely Kanpur and Delhi with a total coverage of about 1.20 lakh
workers. There after the scheme was implemented in a phased manner across the country with the active involvement of the State Governments.
Objectives:
The ESI act is social welfare legislation enacted with the object of providing certain benefits to employees in case of sickness, maternity and
employment injury.
Salient Features Employee State Insurance Act:
Some of the salient features of ESI act are:
1. Administration.
2. Registration.
3. Identity Card.
4. Employers’/Employees’ Contribution.
5. Benefits.
6. Obligations of Employers.
7. Maintenance of Registers and Records.
8. Employees Insurance Court.
1. Administration:
The provisions of the act are administered by the Employees State Insurance Corporation. It comprises members representing employees,
employers, the central and State Government, besides, representatives of parliament and medical profession. A standing committee constituted
from amongst the members of the corporation, acts as an executive body.
2. Registration:
The employer should get his factory or establishment registered with the ESI Corporation within 15 days after the act becomes applicable to it and
also obtains the employer’s code number.
3. Identity Card:
An employee is required to file a declaration form upon employment in factory or establishment to show that he is covered under the act. On
registration every insured person is given a permanent family photo identity card. The identity card serves as a means of identification and has to be
produced at the time of claiming medical care at the dispensary/clinic and cash benefit at the local office of the corporation.
4. Employers’/Employees’ Contribution:
Like most of the social security schemes, the world over, ESI scheme is a self-financing health insurance scheme. Contributions are raised from
covered employees and their employers as a fixed percentage of wages. Presently covered employees contribute 1.75% of the wages, whereas as
the employers contribute 4.75% of the wages, payable to the insured persons. Employees earning less than and up to Rs.50 per day are exempted
from payment of contribution.
5. Benefits:
Employees covered under the scheme are entitled to the following benefits:
(a) Medical Benefit:
The Employees’ State Insurance scheme provides full medical care in the form of medical attendance, treatment, drugs and injections, specialist
consultation and hospitalization to insured persons and also to members of their families.
(b) Sickness Benefit:
Sickness benefit represents periodical cash payments made to an insured person during the period of certified sickness when insured person
requires medical treatment and attendance with abstention from work on medical grounds.
(c) Maternity Benefit:
Maternity benefit is payable to an insured woman in the case of confinement, miscarriage or sickness arising out of pregnancy. In the event of the
death of the insured woman during confinement leaving behind a child, maternity benefit is payable to her nominee.
(d) Disablement Benefit:
Disablement benefit provides periodical payment to a person who sustains temporary disablement for not less than three days and to a person who
sustains permanent disablement.
(e) Dependants’ Benefit:
The dependants’ benefit is payable to the dependants in cases where an insured person dies.
(f) Other Benefits:
Other benefits like funeral expenses, vocational rehabilitation, free supply of physical aids and appliances, preventive health care and medical
bonus are also covered under this act.
6. Obligations of Employers:
The act provides certain obligations for employer:
(a) The employer should obtain the declaration form from the employees covered under the Act and submit the same along with the return of
declaration forms, to the E.S.I, office.
(b) The employer should deposit the employees’ and his own contributions to the E.S.I. Account in the prescribed manner.
(c) The employer should furnish a return of contribution within 30 days of the end of each contribution period.
(d) The employer should not reduce the wages of an employee on account of the contribution payable by him (employer).
(e) The employer should report to the E.S.I, authorities of any accident in the place of employment, within 24 hours or immediately in case of
serious or fatal accidents.
7. Maintenance of Registers and Records:
The act provides provision for maintenance of records by the employer such as:
a. Attendance register. b. Salary/Wage register. c. EC (Employee’s and Employer’s contribution) statement. d. Employees’ register. e. Accident
book. f. Return of contribution. g. Return of declaration forms. h. Receipted copies of challans. i. Account books.
8. Employees Insurance Court:
Any dispute arising under the ESI act will be decided by the employee’s insurance court and not by a civil court.

Maternity Benefit Act, 1961

INTRODUCTION
The object of maternity leave and benefit is to protect the dignity of motherhood by providing for the full and healthy maintenance of women and her
child when she is not working. With the advent of modern age, as the number of women employees is growing, the maternity leave and other
maternity benefits are becoming increasingly common.
ACT 53 OF 1961
With the object of providing maternity leave and benefit to women employee the Maternity Benefit Bill was passed by both the Houses of Parliament
and subsequently it received the assent of President on 12th December, 1961 to become an Act under short title and numbers "THE MATERNITY
BENEFIT ACT, 1961 (53 OF 1961)".
BE it enacted by Parliament in the Twelfth Year of the Republic of India as follows: -
1. Short title, extent and commencement. -
(1) This Act may be called the Maternity Benefit Act, 1961.
(2) It extends to the whole of India 1[* * *].
(3) It shall come into force on such date 2 as may be notified in this behalf in the Official Gazette, -
2. Application of Act.-4[(1) It applies, in the first instance,-
(a) to every establishment being a factory, mine or plantation including any such establishment belonging to Government and to every
establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other performances;
(b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in
which ten or more persons are employed, or were employed, on any day of the preceding twelve months:]
Provided that the State Government may, with the approval of the Central Government, after giving not less than two months’ notice of its intention
of so doing, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to any other establishment or
class of establishments, industrial, commercial, agricultural or otherwise.
(2) 5[Save as otherwise provided in 6[sections 5A and 5B] nothing contained in this Act] shall apply to any factory or other establishment to which the
provisions of the Employees, State Insurance Act, 1948 (34 of 1948), apply for the time being.
COMMENTS
The word establishment has a wide meaning and it generally denotes a shop, a commercial organisation or a public institution, provided that they
are not specifically exempted by the appropriate government from the applicability of the Act; Thomas Eapen v. Assistant Labour Officer, 1993 LLR
800 (Ker).