SUBJECT :-LABOUR LAW

TOPIC :- Labour Laws

• Industrial Dispute Act, 1947 –
• Before the Industrial Dispute Act, there
was no machinery to solve the dispute.
The whole system was based on the
common law and according to common
law, dispute solved according to
the contract between the parties.
Therefore, the Common Law system does
not apply to the industrial system. Hence,
Industrial Dispute Act, 1947 was passed to
meet the needs which were based on
socialistic law. This act is for social
welfare.
 Main features of The
Industrial Dispute Act:
1. Strike and lock-outs are prohibited during the
pendency of conciliation, adjudication
settlement preceding.
2. Any industrial dispute may be referred to an
industrial tribunal by an agreement of parties
to dispute or by State Government.
3. An award shall be binding on both the parties
to the dispute for a specified period not
exceeding one year enforced by the
government.
4. In public interest or emergency, the
appropriate government has the power to
declare the transport, coal, iron and steel
industry to be public utility services for the
purpose of The Industrial Dispute Act, for a
maximum period of six months.
5. In case of lay off or retrenchment of
workmen, the employer is required to pay
compensation.
6. Provision has also been made for payment of
compensation to workmen.
7. A number of authorities such as works
committee, Conciliation Officer, Board of
Conciliation, Labour court, Tribunal are
provided for settlement of industrial disputes.
 The Employees’ State
Insurance Act, 1948
• The Employees' State Insurance
Scheme is an integrated measure of
Social Insurance embodied in the
Employees' State Insurance Act and it is
designed to accomplish the task of
protecting 'employees' as defined in
the Employees' State Insurance Act,
1948 against the impact of incidences of
sickness, maternity, disablement and
death due to employment injury and to
provide medical care to insured persons
• The ESI Scheme applies to factories and
other establishment's viz. Road
Transport, Hotels, Restaurants, Cinemas,
Newspaper, Shops, and Educational/
Medical Institutions wherein 10 or more
persons are employed. However, in
some States threshold limit for coverage
of establishments is still 20. Employees
of the aforesaid categories of factories
and establishments, drawing wages upto
Rs.15,000/- a month, are entitled to
social security cover under the ESI Act.
ESI Corporation has also decided to
enhance wage ceiling for coverage of
employees under the ESI Act from
• ESI Corporation has extended the benefits
of the ESI Scheme to the workers deployed
on the construction sites located in the
implemented areas under ESI Scheme w.e.f.
1st August, 2015.
• The ESI Scheme is financed by
contributions from employers and
employees. The rate of contribution by
employer is 4.75% of the wages payable to
employees. The employees' contribution is
at the rate of 1.75% of the wages payable
to an employee. Employees, earning less
than Rs. 137/- a day as daily wages, are
 The “Employees
Compensation Act, 1923”
• The “Employees Compensation
Act, 1923” is an Act to provide
payment in the form of
compensation by the employers to
the employees for any injuries
they have suffered during an
accident. Earlier this Act was
known as the Workmen
Compensation Act, 1923.
• When the employer is not liable to
pay compensation-
1. If the injury does not end in the
entire or partial disablement of the
employee for a period exceeding
three days.
2. If the injury, not leading in death or
permanent total disablement, is
caused by an accident which is
directly attributable to:
• The employee having at the time of
the accident is under the influence of
drink or drugs;
• The willful disobedience of the
employee to an order if the rule is
expressly given or expressly
framed, for the purpose of
securing the safety of employees;
or
• The willful removal or disregard
by the employee of any safety
guard or other device which has
been provided for the purpose of
securing the safety of employees.
 Employers 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
• (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.
 Compensation
• (a) where death results an from the
injury : an amount equal to fifty per
cent. of the monthly wages of the
deceased *[employee] multiplied by the
relevant factor; or an amount of *[one
lakh and twenty thousand rupees],
whichever is more;
• (b) where permanent total disablement
results from the injury : an amount
equal to sixty per cent. of the monthly
wages of the injured *[employee]
multiplied by the relevant factor; *[one
• (c) where permanent partial disablement
result from the injury: (i) in the case of an
injury specified in Part II of Schedule I,
such percentage of the compensation
which would have been payable in the
case of permanent total disablement as is
specified therein as being the percentage
of the loss of earning capacity caused by
that injury; and (ii) in the case of an injury
not specified in Schedule I, such
percentage of the compensation payable
in the case of permanent total
disablement as is proportionate to the loss
of earning capacity (as assessed by the
qualified medical practitioner)
• (d) where temporary disablement,
whether total or partial, results from
the injury : a half monthly payment
of the sum equivalent to twenty-five
per cent. of monthly wages of the
*[employee], to be paid in
accordance with the provisions of
sub-section (2).
 The Maternity Benefit Act
• The Maternity Benefit Act, 1961 is a
legislation that protects the employment of
women at the time of her maternity. It
entitles women employees of ‘maternity
benefit’ which is fully paid wages during the
absence from work and to take care of her
child.
• The Act is applicable to the establishments
employing 10 or more employees.
• The Maternity Benefit Act, 1961 has been
amended through the Maternity
(Amendment) Bill 2017
• The Maternity Benefit Act, 1961 has
been amended through the Maternity
(Amendment) Bill 2017
• The time of maternity leave which a
lady worker is qualified for has been
expanded from 12 weeks to 26
(twenty) weeks. The Act once in the
past enabled pregnant ladies to profit
Maternity Benefit for just 6 a month
and a half before the date of
anticipated conveyance and a month
and a half after the date of conveyance.
Presently, this period has been
expanded to 8 months.
• The time of maternity advantage of 26
weeks can be stretched out to ladies who are
as of now under maternity leave at the hour
of usage of this revision in the Act. The
improved Maternity Benefit can be profited
for the initial two kids. According to the
revision, a lady having at least two enduring
kids will be qualified for 12 (twelve) weeks of
Maternity Benefit of which not more than 6
(six) will be taken preceding the date of the
normal conveyance.
• A lady who embraces a kid underneath the
age of 3 (a quarter of a year, or an
appointing mother (that is an organic mother,
who utilizes her egg to make an
undeveloped organism embedded in some
other lady), will be qualified for Maternity
Benefit for a time of 12 (twelve).
• Each foundation having 50 (fifty) or
more representatives will be
required to have an obligatory
creche office (inside the
recommended good ways from the
foundation), either independently or
alongside other normal offices. The
lady is likewise to be permitted 4
(four) visits per day to the creche,
which will incorporate the interim
for rest permitted to her.
Thank you
Adv. A.S. Manjarekar