Module 1 – Labour Welfare

Classes of 6.1.2010 to 17.1.2020

Philosophy of Labor welfare activities: 

The philosophy of labor welfare activities are based on the success of industrial development and
the theory of harmony depends on the cooperation and relationship between labor and
management (employer). Worker has a fund of knowledge and experience to perform his job. If
his ability and skill to be properly utilized with the right direction, the worker can be a working
good contributor in the prosperity of the organization. And it can be achieve by work satisfaction
of the worker. 

The labor welfare activities in a form of health care centres to facilitate provided through the idea
of a good medical care center to ensure job satisfaction and productivity improvements will help
more. His staffs to be healthy are a basic need of an organization. 

Historical Development of labour welfare legislation

Labor welfare has not been defined properly especially in Indian context never been taken to
another level, it has been always been limited to welfare legislation. At present, there are over
150 state and central laws in India which govern various aspects of labour welfare

The Apprentices Act of 1850 was the first step as legislation passed in this direction. The main
objective of this legislation was to help and develop skills among poor and orphaned children to
learn various kinds of trades and crafts

The Factories Act, 1881 is another significant attempt to improve the working conditions of
Indian worker. The Factories Act, 1881 applied to factories having not less than 100 workers
working more than 4 months during a year.

The Indian Factories Act, 1911 was passed. This Act was also applicable for labour working in
seasonal factories for less than four months in a year. Along with that working hours for child
labour were reduced to six per day with health and safety provisions.
Factories Act, 1948, Plantation Labour Act, 1951 and Mines Act, 1952 were first of few
legislation with significant welfare provisions for the workers. Welfare funds for coal, iron ore,
manganese, mica, limestone and dolomite mine workers have been established under the Coal
Mines Labour Welfare Fund Act of 1947, the Iron Ore Mines Labour Welfare Cess Act of 1961,
manganese mines in 1978 extended to the Mica Mines Labour Welfare Fund Act of 1946, and
Limestone And Dolomite Labour Welfare Act of 1972.

Iron-Ore Mines Labour Welfare Cess Act, 1961; Maternity Benefit Act, 1961 And Payment of
Bonus Act, 1965. During this period, co-operative housing organization also started to make
amends gradually.

To protect the contract labour from exploitation government passed, the Contract Labour
Regulation and Abolition Act of 1970.

The Fifth Five Year Plan (1974–1979) witnessed the additional provisions for labour welfare in a
number of areas. For encouraging the provision of industrial safety, safety cells were established
in various states of the country. This five year plan period also covered:

(1) new additional requirements for the most of the existing training institutions, such as the
Central Training Institutes for Instructors, the Foreman Training Institute, and Central Staff
Training and Research Institute;

(2) strengthening and expansion of the Advanced Training Institute throughout the country;

(3) Extension of the Apprenticeship Training Programme;

(4) Development and establishment of Vocational Training in Women’s Occupations; and

(5) All other kinds of schemes related to research, surveys and studies to be undertaken by
various organizations and institutes.

Enactments and scheme such as Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA),also known as the "Mahatma Gandhi National Rural Employment Guarantee Act"
is an labour law and social security measure that aims to guarantee the 'right to work' and ensure
livelihood security in rural areas by providing at least 100 days of guaranteed wage employment
in a financial year to every household whose adult members volunteer to do unskilled manual
work. The main objective of labour welfare measures is to enable and encourage workers to live
a more satisfactory working life. The labour welfare services leads to better physical and mental
health of workers. Labour welfare measures such as medical benefits, education, and housing
and recreation cultural facilities for the worker and families helps to creation of content
environment. Improvement in health, educational and enriching condition of life protects labour
from social tribulations like drinking, abusing, gambling etc

Purpose of Labour legislation: Labour legislation that is adapted to the economic and social
challenges of the modern world of work full three crucial roles it establishes a legal system that
facilitates productive individual and collective employment relationships, and therefore a
productive economy; by providing a framework within which employers, workers and their
representatives can interact with regard to work-related issues, it serves as an important vehicle
for achieving harmonious industrial relations based on workplace democracy; it provides a clear
and constant reminder and guarantee of fundamental principles and rights at work which have
received broad social acceptance and establishes the processes through which these principles
and rights can be implemented and enforced. But experience shows that labour legislation can
only fullfills these functions effectively if it is responsive to the conditions on the labour market
and the needs of the parties involved. The most efficient way of ensuring that these conditions
and needs are taken fully into account is if those concerned are closely involved in the
formulation of the legislation through processes of social dialogues. The involvement of
stakeholders in this way is of great importance in developing a broad basis of support for labour
legislation and in facilitating its application within and beyond the formal structured sectors of
the economy.

Types of Labour Legislation in India:

1) Protective and employment legislation

2) Social security legislation

3) Regulatory legislation
Protective and Employment Legislations

1. The Industrial Employment (Standing Orders) Act, 1946: The Industrial Employment
(Standing Orders) Act applies to every industrial establishment wherein one hundred or more
workmen are employed or were employed on any day of the preceding twelve months. It can be
extended even to establishments whose employment of Labour is less than one hundred. The
main purpose is to mention the terms and conditions of the employment.

2. Factories Act 1948: The main objective of the Factories Act is to improve the working
conditions of the workers by implementing the provisions of industrial safety. Factory’ means
any premises wherein ten or more workers are working and in any part of which a manufacturing
process is carried out with the aid of power or wherein twenty or more workers are working and
in any part of which a manufacturing process is being carried out without the aid of power. This
Act covers the health, welfare, safety, working hours, annual leaves with wages and employment
of women and children.

3. The Payment of Wages Act, 1936 and The Payment of Wages (Amendment) Act, 2005:
The Payment of Wages Act, 1936 regulates payment of wages to employees (direct and indirect).
The act is intended to be a remedy against unauthorized deductions made by employer and/or
unjustified delay in payment of wages. It ensures that payment is done regularly Payment should
be made before the 7th day of a month where the number of workers is less than 1000 and 10th
day otherwise. The wage-period shall not exceed 1 month. The Act is applicable only to
employees drawing wages not exceeding rs. 6500 a month. Under the act, payment has to be
made in currency notes or coins. Cheque payment or crediting to bank account is allowed with
consent in writing by the employee.

Employer is allowed to effect only authorized deductions, as specified in the Act. This include
fines (Section 8), absence from duty (Section 9), Damages or loss (Section 10), deduction for
services (amenities ) given to employer (Section 11) recovery of advances and loans (Section 12,
13) and payment to cooperative society and insurance (Section 13).Employers individually or
through trade union can approach the authority (Labour Office) for relief. (Section 15, 16, 17)

4. The Minimum Wages Act, 1948: It is an Act to provide for fixing minimum rates of wages
in certain employments. It is meant to help the workmen to avail a fair bargain with their
employees and ensure wages for them It lays down the procedure for fixing minimum wages and
for appointment of advisory committees and boards. It prohibits wages in kinds. Time and
conditions of payment of wages are stipulated. Only authorized deductions are accepted from the
wages. Working hours in case of an adult are fixed at 48 hours a week. Wages at the rate of
double the time are to be paid for work beyond the normal hours. Registers and records are to be
maintained under the Act are prescribed.

5. The Payment of Bonus Act, 1965 :To impose a legal responsibility upon the employer of
every establishment covered by the Act to pay the bonus to employees. To designate the
minimum and maximum percentage of bonus. To prescribe the formula for calculating bonus. To
provide redressal mechanism

6. The Equal Remuneration Act, 1976 : The Act aims to provide equal pay for equal work .

Legislation Pertaining to Social Security:

1. The Workmen's Compensation Act, 1923 and The Workmen's Compensation

(Amendment) Act, 2000: The Act aims to provide compensation in case of accidents and miss
happening at work place.

2. The Employees State Insurance Act, 1948 : This helps the employees from the hardships
arising from sickness, maternity, invalidity, accidents occupational diseases etc. This provides
the medical facilities and the employment insurance during illness to industrial workers. The
scheme is administered by the ESI Corporation, an autonomous body consisting of
representatives of Central and State Governments, employers, employees, medical professionals
and members of parliament. This scheme applies to factories is that employ more than twenty
people wherein the process is carried out by power. This does not apply to seasonal factories.

The finances of the scheme included contributions from employee, employer, and donations
from State and Central Governments and local bodies.

The scheme offers the following advantages:

(i) Medical benefits.

(ii) Sickness benefits.

(iii) Maternity benefits.

(iv) Disablement benefits.

(v) Dependents benefits.

The scheme provides for medical care through dispensary system, hospital etc. When an insured
person is suffering from a chronic long term disease like tuberculosis, he gets fairly extended
medical care for almost a year after the normal entitlement. During medical treatment, the person
is paid around half of his daily wage.

3. The Maternity Benefit Act, 1961 This Act regulates employment of women in certain
establishments for certain periods before and after child birth and provides maternity and certain
other benefits. The act is not applicable to women employees covered under ESI scheme. A
women employee is entitled to a maximum of 12 weeks maternity leave, 6 weeks before and 6
weeks after her delivery. She also gets a medical allowance of Rs. 250 if the employer does not
provide for free prenatal and post-natal medical care. To avail these benefits she should have
completed at least 60 days of service during the preceding 12 months.

3. The Employees” provident Fund and Miscellaneous Provisions Act, 1952 and The
Employees” Provident Fund and Miscellaneous Provisions (Amendment) Act, 1996:
The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 has been enacted with
the main objective of protecting the interest of the employees after their retirement and their
dependents after death of the employee. The Act provides insurance to workers and their
dependents against risks of old age, retirement, discharge retrenchment or death. Under the EPF
scheme, an employee has to pay a certain percentage from his pay and an equal amount is
contributed by the employer. The employee gets a lump sum amount (which includes his own
and employer's contributions) with interest upon retirement or two months after switching Jobs.
At the end of the financial year, the employer shares the PF statement with the employees after
receiving them from the Employees' Provident Fund Organisation (EPFO). To get a detailed
breakup, you need to get your hand on a copy of the PF statement where you will find
information of both employee and employer contributions and other details including interest
earned during the year in a consolidated form.
4. The Payment of Gratuity Act, 1972 : The Payment of Gratuity Act 1972 is a social security
enactment. An Act to provide for a scheme for the payment of gratuity to employees engaged in
factories, mines, oilfields, plantations, ports, Railway companies, shops or other
establishments[i]. The significance of this legislation lies in the acceptance of the principle of
gratuity as a compulsory statutory retiral benefit.[ii] The Act accepts, in principle, compulsory
payment of gratuity as a social security measure to the wage-earning population in industries,
factories and establishments. Thus, the main purpose and concept of gratuity are to help the
workman after retirement, whether retirement is a result of the rules of superannuation or
physical disablement or impairment of vital part of the body.Thus, it is a sort of financial
assistance to tide over post retiral hardships and inconveniences.[iii] It is derived from the word
‘gratuitous’, which means ‘gift’ or ‘present’. However, having being enacted as a social security
form, it ceases to retain the concept of a gift but it has to be seen as a social obligation by an
employer towards his employee. Gratuity shall be payable to an employee on the termination of
his employment after he has rendered continuous service for not less than five years,-

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement (five-year service not required) due to accident or disease

5. The Unorganized Workers Social Security Act, 2008: The act provides for the constitution
of National Social Security Board at the Central level which shall recommend formulation of
social security schemes viz life and disability cover, health and maternity benefits, old age
protection and any other benefit as may be determined by the Government for unorganised
workers. As a follow up to the implementation of the Act, the National Social Security Board
was set up on 18 August 2009.

6. The Child Labour (Prohibition and Regulation) Act, 1986: The main object of the Child
Labour ( Prohibition and Regulation) Act, 1986 is to address the social concern and prohibit the
engagement of children who have not completed 14th year of age in certain employments and to
regulate the conditions of work of children has been prohibited in occupations relating to (i)
transport of passengers, goods or mails by railways (ii) bidi making (iii) carpet weaving (iv)
manufacturing of matches, explosives and fire (v) soap manufacture (vi) wool cleaning (vii)
building and construction industry. The Government has also prohibited employment of children
in the following occupations or processes: (i) Abattoirs/Slaughter houses (ii) hazardous processes
and dangerous operations as notified (iii) printing, as defined, (iv) cashew and cashewnut
descaling and processing 9v) soldering processes in electronic industry. The Act prohibits
employment of child in about 13 occupations and about 51 processes. [1] The Fundamental
Rights mentioned in the Constitution of India (the law of land) in the Article 24 under Right
Against Exploitation also mentions for prohibition of employment of children in factories, etc

Every occupier shall maintain in respect of children employed or permitted to work in any
establishment, a register to be available for inspection by an Inspector at all times during
working hours or when work is being carried on in any such establishment, showing –

The name and date of birth of every child so employed or permitted to work

Hours and periods of work of any such child and the intervals of rest to which he is entitled

The nature of work of any such child

Such other particulars as may be prescribed.

Provisions relating to Child workers under various Acts:

Factories Act, 1948 [3] :Section 22 of the Act mentions that no young person can be shall be
allowed to clean, lubricate or adjust any part of machine which thereof would expose the young
person to risk of injury from any moving part either of that machine or of any adjacent
machinery.Section 23 of the Act defines that no young person is allowed to be employable on
dangerous machines.Section 27 of the Act prohibits employment of children in any part of a
factory for pressing cotton in which a cotton-opener is at work.

The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 [4] :

Section 24 of the Act defines that employment of child under in this industry is strictly
prohibited under this Act.
Plantation Labour Act, 1951 [5] :

Section 25 of the Act specifies that Women and children can be employed only between the
hours of 6a.m and 7p.m. They can be employed beyond these hours only with the permission of
the State Government.

Domestic Workers (Registration Social Security and Welfare) Act, 2008 [6] :

Section 14 of the Act specifies that no child shall be employed as a domestic worker or for any
such incidental or ancillary work which is prohibited under any law.

Provision for Penalties under the Act:

Any employer:For employing any child in contravention of the provisions of the Act –
imprisonment for not less than 3 months extending to 1 year or with fine not less than Rs. 10000
extending to Rs. 20000, or both.

For second offence of like nature - imprisonment for not less than 6 months which may extend to
2 years.

Failure to maintain a register - simple imprisonment which may extend to 1 month or with fine
which may extend to Rs. 10000, or both.

7. The Employees’ State Insurance Act, 1948 : Employees’ State Insurance Act is a pioneering
measure in the field of social insurance in the country. Adarkar’s report was considered by the
Government of India, in consultation with the state governments other interested concern gave
birth to workmen’s State Insurance Bill, 1946. The bill was modified by the select committee
making it applicable to all the employees in factories and changed the name of the bill from
workmen’s state insurance bill to Employees’ State Insurance bill. Finally the Employees’ State
Insurance Act was passed in 1948.16

Objectives : The object of the Act is to provide the insured workers certain benefits in case of
sickness, maternity and employment injury and to make provision for certain other incidental
matters related to these benefits.
Benefits : Social security schemes should be designed in such a manner to ensure freedom from
economic fear. The benefits provided under the Act seek to attack and remove the fear. The
benefits provided under the Act are sickness benefit, maternity benefit, disablement benefit,
dependents’ benefit, medical benefit and funeral benefit. An insured person who is entitled to
benefits under the scheme is not eligible to claim similar benefits under the Employees’
Compensation Act, 1923 and Maternity Benefit Act, 1961.

Sickness Benefit : Every insured employee is entitled to the cash benefit for aperiod of sickness
occurring during any benefit period and certified by a duly appointed medical practitioner if the
contributions in respect of him were payable for not less than 78 days in the corresponding
contribution period.

Regulatory Legislation

1. Trade Union Act 1926 and the Trade Union Amendment Act, 2011: In the Year 1920,
workers or laborers at different places like Buckingham, Madras went on strike. A suit was filed
against the laborers at Madras high court, this issue day by day became so serious that it led to
the formulation of an Act called as Trade Union Act 1936. This Act gave powers to the Union
for certain writ and criminal activities and also provided democracy to them.

2. The Industrial Disputes Act, 1947: The Act provides machinery for the settlement of
disputes by arbitration or adjudication. It attempts to ensure social justice and economic progress
by fostering industrial harmony. It enables workers to achieve their demands by means of
legitimate weapon of strike and thus facilitates collective bargaining. It prohibits illegal strikes
and lockouts. It provides relief to the workman in the event of layoff or retrenchment.
 Welfare of women and Child Labour: Protective provisions under Equal Remuneration
Act 1976

While women constitute a substantial chunk of the available workforce in India, they are still
lacking in work participation (the percentage of women employed is still low as well as quality
of employment.

[i] One of the reasons for this lack of this female labour participation is the lack of suitable jobs
on offer, i.e. the disparity between what they can do and what is available to them.

[ii] Another reason for the low female turnout in the field of employment is the issue of safety.
Better governance and policing is a must if there is any intention of increasing the sense of
security among women and thus encouraging more women to take up jobs.

[iii] This vulnerable position of women in terms of adverse conditions is only worsened by any
possible sudden negative impact upon the industry as they are already dealing with unequal
intrinsic situations

[iv] They have to cope with childbirth and related issues, they have also to deal with domestic
responsibility, which in a patriarchal society is not much of a concern to men, 

Thus in order to bring women up to par with their male counterparts, it is important that they are
not only given equal rights in labour law, but also special protection.

Employment opportunities and wage disparity

Equality of employment and occupation is not possible without equal opportunities and equal
treatment. While equal opportunity refers to having an equal chance of applying for a particular
job – equal access to employment, which includes, equal chance to acquire training in the field,
eligibility for promotions, and eligibility to attain certain qualifications/ enter certain cadres;
equal treatment refers to being entitled to equal pay, working conditions, social security, and
social protection and quality of family life (in terms of the opposite sex). Promotion of equality
in employment is a positive enforcement, unlike prevention of discrimination, which is a sort of
negative right or negative equalit
A woman’s income, on average, worldwide, per hour is 75% that of a man. One of the reasons
this practice is still so prevalent even today is because of the popular view that the costs of
employing women is higher than employing men, because due to the various positive
discriminations provided for in statutes women work fewer overtime hours, women must be
given maternity leave, etc.

Wage disparity is so hard to combat because it is often very hard to detect. It operates through
access to promotions and other similar indirect means, as such qualifications affect not only pay,
but also perquisites.

One of the most basic reasons as to why there is an inequality in the employment opportunities
available to women and the disparity in wages is that women are view as supplementary earners
and men are viewed as primary breadwinners.[ix] This operates as a vicious cycle, as the low
wages offered to women further entrenches them in lower cadres of employment and continues
to perpetuate disparity.

Additionally women accept jobs with lower pay in order to avoid sitting idle, and this
differential wages works as a discouraging factor against enhanced performance and thus reduces
an opportunity for career advancement.[x] Another cause for disparity in income is that a
majority of the active female workforce is involved in the informal sector, such as agriculture
and domestic work, which have very few regulations in terms of remuneration and social
security.

Sexual harassment of women in the workplace

Sexual Harassment in the workplace refers to any unwanted sexual advances, be it verbal or
physical, as long as it is of sexual nature and is either used as leverage for favourable treatment
at work or is interfering with an individual’s performance at work by creating a hostile work
environment. Sexual harassment is inclusive[xiii] of:

Inappropriate remarks, jokes, or insinuations of a lewd or sexual nature

Unwanted physical contact, including assault

Lewd gestures and lecherous looks

Compromising invitations.

Requests or demands for sexual favours – including implicit or explicit threats of dismissal or
other unfavourable treatment if such favours are refuse; also incentive of favourable treatment in
return for such favours.

In India no legislation regarding this existed until the case of Vishaka v the State of Rajasthan. In
the Vishaka case the Supreme Court laid down guidelines regarding sexual harassment at the
workplace. Post the Vishaka case a Bill for the prevention of sexual harassment at the workplace
developed over the years – Protection of Women against Sexual Harassment at Workplace Bill;
from the year 2000 to 2010 there have been 9 different attempts by different drafting committees.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act
came into force on the 9th of December 2013.

Maternity Benefits

Women with infants and young children, often have to pick between their job and their
responsibility towards their children, due to that lack of facilities at their workplaces, in order to
accommodate both. This problem stems from the idea that a woman’s primary or natural
responsibility is keeping of the home and raising children. Though crèches have to be
mandatorily provided, such provisions are only possible in the formal workplace. The informal
sector, where a majority of the active female populace is employed rarely provides such
facilities. Thus resulting in, child bearing and rearing becoming deterrents for women’s
employment.Therefore it is essential that maternity benefits be provided mandatorily to women
at the workplace in order to encourage more women to actively be part of the workforce.

The provision of maternity protection is essential in furthering the idea of equal opportunity in
employment. The idea of providing for such benefits is to prevent childbirth from working as a
deterrent to women, and to ensure that women do not have to pick between their “reproductive
and productive roles.” As provided under the ILO Maternity Protection Convention and
Recommendations of 2000, maternity leave is a mother’s right to a period of leave for the
purpose of rest and recuperation from childbirth and its consequences thereof. The convention
provides for cash and medical benefits (article 6(3)) and also a right to breast feed her child after
returning to work (article 3)
The ILO Maternity Protection Convention (2000) extends the provisions of ILO Maternity
Protection Convention (Revised) 1952, providing that maternity leave (which is defined as leave
from work granted to a woman for a continuous period before and after giving birth) ought to be
provided to all employed women for a period of at least 14 weeks (Article 4.1). This refers not
only to those women employed in the formal sector, but also those women employed in the
informal sector. It further provides that unless otherwise provided by the national government, at
least 6 weeks of maternity leave must be taken after the birth of the child (Article 4.4). The ILO
convention also makes a provision for leave to be provided even after the maternity leave period
either before or after childbirth in the case of medical complications or illness, if an appropriate
medical certificate is provided (Article 5). The ILO Maternity Protection Recommendations
1981 also endorse an extension of the maternity leave period to 18 weeks, and to provide for
protection against dismissal for a certain period after return from maternity leave. The ILO
Maternity Protection Convention in Article 8 awards the right to return to the same work or a
position with the same pay, after maternity leave. It also makes it unlawful to dismiss such an
employee, except on grounds unrelated to pregnancy or the consequences thereof, with the
burden of proof being the employer’s to relieve. Many EU countries and other first world
countries in order to alleviate the position of these new mothers provide for cash benefits to
reduce the burden of having lost income for the period of maternity leave. They also have
legislations in place to grant “parental leave” to either parent, in extension to the maternity leave
provided.

In the Indian context under the Maternity Benefit Act 1961, maternity leave is given to any
pregnant employee for a period of 6 weeks prior delivery and 6 weeks after. If however the
employee wishes, she can claim the leave continuously after birth so long as the period claimed
does not exceed 12 weeks, as per the Amendment of 1989 (section 6). In accordance to Section
5(1) of the Act the employer must pay the pregnant employee a cash maternity benefit at the rate
of average daily wages, for the period she was actually absent preceding and during the time of
her delivery as well as 6 weeks immediately after her delivery.  Also in accordance to section
6(5) the employee is entitled to this benefit in advance i.e. preceding the date of delivery. Also
similar to the provisions of the ILO conventions, a woman employee who has absented herself
from work due to pregnancy, cannot be dismissed (except due to reasons unrelated to pregnancy)
as under section 12(1).
Other Special Provisions Related to Women in Labour Statutes in India

While there are multiple legislations aimed only at women, such as the Sexual harassment at
Workplace Act, Maternity Benefits Act, etc., a number of other statutes that are aimed at the
general working populace have special provisions for the welfare of women workers,
namely[xxvi]:

The Factories Act, 1948

The Mines Act, 1952

The Plantation Labour Act, 1951

The Beedi and Cigar Workers (Conditions of Employment) Act, 1966,

The Contract Labour (Regulation and Abolition) Act, 1970

The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act,
1979

Building and Other Construction Workers’ (Regulation of Employment and Conditions of

Service) Act, 1996

Minimum Wages Act, 1948 (ix) Payment of Wages Act, 1936

The Employees’ State Insurance Act, 1948

The Workmen Compensation Act, 1923

The Employees Provident Funds and Miscellaneous Provisions Act, 1952

Payment of Gratuity Act, 1972

The Equal Remuneration Act, 1976 defines "remuneration" in In India, the principle of equal
pay means equal remuneration for "the same work or work of a similar nature" (Sec. 4), which in
turn is defined in Sec. 2 (h) of the Act as follows: “Work in respect of which the skill, effort and
responsibility required are the same, when performed under similar working conditions, by a
man or a woman.
No employer shall, for the purpose of complying with the provisions of sub-section (1), reduce
the rate of remuneration of any worker. Thus, even if the work of a man and a woman are of a
similar nature, job differentiation can be made artificially. For example, a cashier is paid more
than an accountant, even if the job content is similar in both cases .The cashier is paid more
because he handles cash, and his job is classified as more sophisticated.

The Equal Remuneration Act, 1976 covers all industries and sectors, public and private,
organized and unorganized, and all employees doing permanent, temporary and casual work. The
law covers central, state and local authorities, hospitals and dispensaries, banks and financial
services,

The Act does not cover self-employed workers like unpaid women workers in farming,
households and in the unorganized sectors in large numbers. The principle of equality is
applicable within an establishment. The law permits wage differences to exist across
establishments. The wage differentials can be high across establishments because of differences
in productivity, and the capacity to pay may differ widely.

The Act also ensures that there will be no discrimination against recruitment of women and
provides for the setting up of Advisory committees to promote employment opportunities for
women

Advisory Committee For the purpose of providing increasing employment opportunities for
women, the appropriate Government shall constitute one or more Advisory Committees. The
Committee hear and decide—

(a)complaints with regard to the contravention of any provision of this Act;

(b)claims arising out of non-payment of wages at equal rates to men and women workers for the
same work or work of a similar nature, and may, by the same or subsequent notification, define
the local limits within which each, such authority shall exercise its jurisdiction.

It shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908),
for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling
the production of documents, and every such authority shall be deemed to be a Civil Court for all
the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of
1974).

No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class
shall try any offence punishable under this Act. (2) No court shall take cognizance of an offence
punishable under this Act except upon— (a) its own knowledge or upon a complaint made by the
appropriate Government or an officer authorized by it in this behalf; or (b) a complaint made by
the person aggrieved by the offence or by any recognized welfare institution or organization.