My Book Industrial Relations PDF

INDUSTRIAL RELATIONS
CONCEPTS,DEVELOPMENTS,ADVANCEMENTS AND APPLICATIONS

(1793 TO 2019)
PROF DR C KARTHIKEYAN
. . .
Industrial Relations:
Concepts, Developments,
Advancements and Applications
(1793 to 2019)
Prof. Dr. C. Karthikeyan

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Copyright © Dr. C. Karthikeyan, 2020
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ISBN: 9789389744798
Price ₹590
First Published in May 2020

DEDICATED TO MY BELOVED
STUDENTS
PROF DR. C. KARTHIKEYAN

Preface
This book Industrial Relations, Acts, Rules, Law and Its Practices,
prepares students of HR specialization and HR practitioners and
other students of management who specializes in Commerce,
Entrepreneurship Management, BBA, MBA, or Business Strategy
related subjects, Entrepreneurial practitioners, and includes the
dynamic concepts of newer Entrepreneurial Strategies happening
across the world, and also caters to the syllabus for BBA and MBA of
all the leading Indian Universities specifically to Bangalore
University, Anna University, Bharathiar University, Kerala
University, Calicut University, and other Indian Universities. These
concepts in this book will prepare all Entrepreneurial professionals
who are evolving into higher level professionals who can use this
book for their challenging and rewarding career. The readers can
apply these concepts in their day to day management strategy
functions to have effective practical advancements in their career.
Who will benefit from this Book
All students and practitioners of HR management specialization, HR

practitioners, Students of Law, and for students studying strategic
management and executives practicing in corporate and MBA
students of various universities at various levels, and in any kind of
organization will benefit from learning to manage strategic areas in
management. This includes all the students, faculties in colleges and
universities, and those who already have strategic management as a
subject and want to become more effective and other professionals
who want an improved understanding of strategic management.
This book also fits to the non-business organization like the non-
government organizations (NGOs), Government Organizations,
Health Care Administrative HR Professionals, and non-profit
enterprises. The strategic functions though occasionally are dynamic
as well intriguing, the basics remain the same related the Human
nature. The dynamics of strategic management are now more
globalized in nature as the culture and work practices are almost
multicultural and multinational in nature, and hence updating of
i
newer and practically evolving Strategic practices are required for
every kind of managers, and this Advances in Strategic Management
will definitely fit in. The dynamism in the newer paradigms will soon
become the secondary skill for the practicing as well as budding
strategy management specialists.
Organization of the Book
The Book is organized into 17 chapters, with Labour, Indian scenario,

and its legislation, Indian Labour Laws, External Trade and
Investment Development and Its Impact in India, Indian Minimum
wage: Evolution to Contemporary State, Indian Labour Law and
Acts: Evolution, Growth and Applications, Workplace participation
and Its Components, The Payment of Wages Act, 1936, Working
Capital, Trade unions in India, Equal Remuneration Act 1976, Equal
Remuneration Act 1976, Understanding Minimum Wages and Its
Applications in India, Legislative Acts Under Government of India
and Labour Law, The Child Labour Prohibition and Regulation Act
1986, The Cine workers and Cinema Theatre worker’s (Regulation
Of employment Rules, 1984), Equal Remuneration Act, 1976, The
Industrial Disputes Act, 1947 with various additions of contemporary
applications in India, and its relevance to the present practices on the
contemporaries of the world.
Learning Assistance
The dynamics and newer paradigms, that has led to the advances in
Industrial Relations Management, Industrial Relations and Rules
regulations connected to Industrial relation, and its associated model
on the inside of the book cover gives an overview of the book content.
Each chapter begins with learning objectives and concludes with a
summary, key ideas, and concepts for review, and discussion
questions. The purpose of the new section “Exercises/Action Steps”
is to elicit readers’ involvement.
ii
Acknowledgements
After completing almost two and half decades with interaction with
different kind of human beings, by virtue of travelling across the
country and working in various kinds of organizations with various
work cultures, I first of all thank the almighty for having blessed me
in giving those coveted learning trails in life, as life itself is a journey
of experiences and so is this book coined and not simply meant for
reading for examination.
I am indebted to so many persons that a complete acknowledgement

would become encyclopedic.
Many scholars, writers, and managers are acknowledged through

references in the text. Many HR leaders with whom I worked have
contributed by their contributions and leading by example.
Thousands of employees in various states in various capacities have
honoured me with their ideas and cooperating with me to experiment
and train during their tenure with me as an employee as well as
colleagues in the executive training classes and lectures of mine. To
all the HR executives with whom I had the privilege to work as
Director /or Heading a Project was very vital for contributing ideas
to formulate it as a book. Many colleagues, scholars, managers,
students of Ph.D., M.B.A, and other executive training had sharpened
me and my thinking to contribute those as ideas and later into a book.
I am indebted to my wife, son, father and mother in law, sisters,
brothers, cousins and other friends who had been consistent in
inspiring me to write.
To the reviewers and the publishers who reviewed and made many
valuable suggestions in many important ways whom I could not
name here, and their contributions have been important for this
edition.
Finally, to my Radhi and Rajieth.
Prof. Dr. C. Karthikeyan
iii
Contents
Chapter 1: Labour, Indian scenario, and its legislation .......... 1

Labour in India ......................................................................................... 1
Labour relations ....................................................................................... 4
Evolution of Labour Relations: 1950-1990 ............................................. 5
Labour Issues in the Unorganized Sectors ............................................ 7
Evolution of Labour laws in India ......................................................... 9
The major laws relevant to India .......................................................... 11
Economists' criticisms ............................................................................ 14
Chapter 2: Indian Labour Laws................................................. 17

Characteristics of Indian Regulations: Labour and Economy .......... 17
Reflections of Historical Labour Legislation; Since 1793 ................... 18
British Era (1793–1947) .......................................................................... 20
Pre-liberalization period (1947–1992): Indian Economic Policy ....... 22

Evolution of Economic Liberalization and Economic Development in
India ......................................................................................................... 23
Labour Impact of Various Sectors in India: Evolution to Present
Scenario ................................................................................................... 25
Chapter 3: External Trade and Investment Development and

Its Impact in India ........................................................................ 38
Indian External Trade, Investments and Relations ............................ 38
Foreign Direct Investment: Indian Scenario ....................................... 41
Income and consumption and impact on Indian Labour .................. 42

Economic trends and issues .................................................................. 46
iv
Standard of living in India .................................................................... 52
Chapter 4: Indian Minimum wage: Evolution to

Contemporary State ...................................................................... 55
Modern minimum wage laws trace their origin to the Ordinance of
Labourers (1349) ..................................................................................... 56
Minimum wage laws: India and Rest of the world............................ 57
Informal minimum wages: Indian Scenario ....................................... 58

Setting minimum wage ......................................................................... 59
Economics models for Wage Fixation.................................................. 59
Consequences of Minimum Wage Laws ............................................. 60

ILO and Its Contribution to Minimum Wage ..................................... 63
Wage labour ............................................................................................ 65
Wage slavery .......................................................................................... 67
Chapter 5: Indian Labour Law and Acts: Evolution, Growth

and Applications ........................................................................... 70
Indian labour law ................................................................................... 70
Factories Act 1948................................................................................... 72

Contract and rights ................................................................................ 72
Employment contracts ........................................................................... 73
Wage regulation ..................................................................................... 74

Health and safety ................................................................................... 75
Pensions and insurance ......................................................................... 75
Chapter 6: Workplace participation and Its Components .... 77

Trade unions ........................................................................................... 77
v
Management participation .................................................................... 77
Collective action ..................................................................................... 78

Provisions of the Factories Act 1948 .................................................... 79
Chapter 7: The Payment of Wages Act, 1936 ........................... 82
Object of the Act; Applications ............................................................. 82

Responsibility for payment of wages [Section 3] ............................... 84
Fixation of wage according to periods. [Section 4] ............................ 85
Time of Payment: of Wages. [Section 5] .............................................. 85

Deductions which may be made from wages ..................................... 87
Inspectors ................................................................................................ 91
Claims arising out of deductions from wages .................................... 92

Powers of authorities appointed [Section 18] ..................................... 93
Appeal [Section 17] ................................................................................ 94
Penalty for offences under the act [Section 20] (2005 amendments) 94
Payment of Undisbursed Wages in case of death of employed person
[Sec 25A] .................................................................................................. 95
Chapter 8: Working Capital ........................................................ 96

Minimum Wages Act, 1948 ................................................................... 97
Essential Ingredient ............................................................................... 98
Classification of Wages .......................................................................... 98
Main provisions under the Act ............................................................. 98

Fixing of minimum rates of wages Section 3 ...................................... 98
Minimum rate of wages (Section 4) ..................................................... 99
Procedure for fixing and revising minimum wages (section 5) ....... 99
vi
Wages in kind (section 11) .................................................................. 100
Payment of minimum rate of wages (Section 12) ............................. 100
Fixing hours for normal working day (section 13)........................... 100

Overtime (Section 14) .......................................................................... 101
Wages for two or more classes of work (Section 16) ........................ 101
Maintenance of registers and records (Section 18) ........................... 101

Inspections (Section 19) ....................................................................... 101
Claims (Section 20) ............................................................................... 102
Penalties for Offences (Section 22) ..................................................... 102

Incorporation (business) ...................................................................... 102
Chapter 9: Trade unions in India ............................................. 103
Evolution of Trade Unions in India ................................................... 103

History ................................................................................................... 104
Independence (1947) to Liberalization (1991) ................................... 105
Liberalization (1991) to Present .......................................................... 105

Central Trade Union Organizations (CTUOs) of India ................... 106
Chapter 10: Equal Remuneration Act 1976 ............................. 107

The main provisions of the Act .......................................................... 108
Central/State Advisory Committee................................................... 110
Chapter 11: Equal Remuneration Act 1976 ............................. 111

The Maternity Benefit Act, 1961 ......................................................... 111
The main provisions of the Act .......................................................... 112
vii
Chapter 12: Understanding Minimum Wages and Its
Applications in India ................................................................. 114
Concepts and Applications of Minimum Wage ............................... 115
Essential Ingredient ............................................................................. 116
Classification of Wages ........................................................................ 116
Main provisions under the Act ........................................................... 117
Chapter 13: Legislative Acts Under Government of India and

Labour Law .................................................................................. 122
The Apprenticeship Rules, 1991 ......................................................... 123
Reservation of training places ............................................................ 126

Training Periods ................................................................................... 127
Maintenance of record of work by apprentices ................................ 129
Hours of work....................................................................................... 130

Records and Returns ............................................................................ 134
Schedule VI, Terms and conditions of the contract of apprenticeship
for Graduate .......................................................................................... 141
Chapter 14: The Child Labour Prohibition and Regulation Act

1986 ................................................................................................ 145
The Child Labour (Prohibition and Regulation) Act, 1986 ............. 147
Part I - Preliminary ............................................................................... 147
Part II - Prohibition of employment of children in certain occupations

and processes ........................................................................................ 148
Part III - Regulation of conditions of work of children .................... 150
Part IV - Miscellaneous ........................................................................ 155
viii
Chapter 15: The Cine workers and Cinema Theatre worker’s
(Regulation Of employment Rules, 1984 ............................... 164
Chapter I Preliminary .......................................................................... 164
Chapter II Form of agreement under Section 3 ................................ 165
Chapter III Procedure for reference of disputes to a Conciliation

Officer or a Tribunal ............................................................................ 165
Chapter IV Powers, procedures and duties of the Conciliation Officer
and the Tribunals ................................................................................. 166
Form (A) An Agreement between Film Producer and Cine Worker
................................................................................................................ 172
Chapter 16: Equal Remuneration Act, 1976 ............................ 180

Chapter II Payment of remuneration at equal rates to men and
women workers and other matters .................................................... 184
Complaints and Claims under the Act .............................................. 186

Chapter III Miscellaneous ................................................................... 187
Chapter 17: The Industrial Disputes Act, 1947 ...................... 193

Chapter II Authorities under this Act................................................ 213
Chapter II - A - notice of change ........................................................ 219
Chapter II – B - Reference of certain individual disputes to grievance

settlement authorities .......................................................................... 220
Chapter III Reference of disputes to boards, courts or tribunals ... 221
Chapter IV Procedure, powers and duties of authorities................ 229
Chapter V Strikes and Lockouts ......................................................... 243

Chapter V – A – Layout and Retrenchment ...................................... 246
ix
Chapter V – B – Special provisions relating to lay-off, retrenchment
and closure in certain establishments ................................................ 257
Chapter V – C – Unfair labour practices............................................ 267

Chapter VI Penalties ............................................................................ 268
Chapter VII Miscellaneous .................................................................. 270
The First Schedule Section 2(N) (VI) Industries which may be

declared to be Public Utility Services under sub-clause (vi) of clause
(n) of section 2 ....................................................................................... 284
The Second Schedule Section (7) Matters within the Jurisdiction of
Labour Courts ....................................................................................... 286
The Third Schedule Section (7A) Matters within the Jurisdiction of
Industrial Tribunals ............................................................................. 287
The Fourth Schedule Section (9A) Conditions of Service for change of

which Notice is to be given ................................................................. 287
The Fifth Schedule Section 2(RA) Labour Unfair Practices ............. 288
I - On the part of employers and trade unions of employers .......... 288
II - On the part of workmen and trade union of workmen ............. 291

The Industrial Tribunal (Procedure) Rules, 1949 ............................. 293
The Industrial Tribunal (Central Procedure) Rules, 1954 ................ 294
Part I - Procedure for reference of industrial disputes to boards of

conciliation, courts of enquiry, labour courts, industrial tribunals or
national tribunals ................................................................................. 296
Part II – Arbitration Agreement ......................................................... 298
Part III - Powers, procedure and duties of conciliation officers, boards,
courts, labour courts, tribunals, national tribunals and arbitrators
............................................................................................................... .300
The Industrial Disputes (Central) Rules, 1957 .................................. 310

Part IV - Remuneration of chairmen and members of courts, presiding
officers of labour courts, tribunals and national tribunals, assessors
and witnesses ........................................................................................ 310
x
Part V – Notice of change .................................................................... 312
Part VI – Representation of parties .................................................... 312

Part VII – Works Committee ............................................................... 312
Part VIII – Miscellaneous .................................................................... 321
1[SCHEDULE [FORM A [SEE RULE 3] Form of application for the

reference of an industrial dispute to a board of conciliation/court of
enquiry/ labour court/tribunal/ national tribunal under section
10(2) of the industrial disputes act, 1947. .......................................... 340
FORM B [See Rule 6]............................................................................ 342
2 FORM C [See Rule 7] Agreement .................................................... 343
FORM D [See Rule 17] Summons....................................................... 345

FORM E [See Rule 34] Notice of Change of Service Condition
Proposed by an Employer ................................................................... 346
FORM F [See Rule 36] Representation of parties ............................. 347
FORM G [See Rule 47] Form of nomination paper .......................... 348
Chapter 18: Recent Amendments to Industrial Relations Act

and other related Acts ................................................................ 535
(i) Compulsory Retirement ................................................................. 536
(ii) FR 56(j) Pension Rule 48 of CCS (Pension) Rules, 1972 ............. 536
(iii) Time Schedule for review is as under......................................... 536
(iv) Live Case Examples; to understand Applications in real life .. 537
(v) Example Case 2: Compulsory Retirement Under Section 56(J) of

CCS (Pension) Rules ............................................................................ 538
(vi) The Industrial Relations Code, 2019 ........................................... 539
a. The Industrial Disputes Act, 1947 ........................................... 539
b. The Trade Unions Act, 1926 ..................................................... 539

c. The Industrial Employment (Standing Orders) Act, 1946 ... 539
xi
d. Amendments related to Trade Unions ................................... 540
e. Negotiating Unions ................................................................... 540

f. Unfair Labour Practices ............................................................ 540
g. Standing Orders ........................................................................ 541
h. Notice of Change ....................................................................... 541

i. Layoff and retrenchment .......................................................... 541
j. Industrial Establishment........................................................... 541
k. Voluntary Arbitration .............................................................. 542

l. Resolution of Industrial Disputes........................................... 542
m. Industrial Tribunals ................................................................ 542
(vii) Key Amendments Introduced under the Amendment Bill .... 543
(viii) The removal of Minister’s Discretion ....................................... 543
(ix) Referral of Unfair Dismissal Claims............................................ 543
(x) Conciliation Meetings at the Industrial Relations Department.544

(xi) The individual cannot be an advocate and solicitor ................. 544
(xii) The appointment of the individual must be authorized by the
employer or employee, as the case may be; ...................................... 544
(xiii) The appointment of the individual must be with the permission

of the DGIR. .......................................................................................... 544
(xiv) The Scope of Collective Bargaining .......................................... 545
(xv) Amendments in the penalties ..................................................... 547
xii
Labour, Indian Scenario, and its Legislation
Chapter - 1
Introduction and Learning Assistance: This chapter will introduce

you to the issues of labour relations in various kinds of industries
with particular reference to India, and the conceptual clarity on how
Labour in India currently is, and the issues that are happening across
the world contemporarily in India as well in India. The issues that
crop up in yesteryears in the labour relations in India in the Pre-
Independence to Post Independence is discussed here with the
conceptual clarity on what labour relations means now, with a brief
description how and what labour relations in different kinds of
industries as the nature and formations have changed of late, and the
important areas to be taken care in Labour relations, and the
evolution of Labour Relations: 1950-1990, and the labour Issues in the
Unorganized Sectors, and evolution of Labour laws in India. The
further advancement is towards the major laws relevant to India with
positive and negative impact of the same with the economists'
criticisms.
Labour in India;
Labour and its availability depicted by various statistical data bases

of the world estimates that, India had about 487 million workers
compared to China's 795 million and United States' 154 million.
Labour in India refers to employment in the economy of India. In
2012, there were around 487 million workers, the second largest after
China. Of these over 94 percent work in unincorporated, unorganized
enterprises ranging from pushcart vendors to home-based diamond
1
and gem polishing operations. The organized sector includes workers

employed by the government, state-owned enterprises and private
sector enterprises. In 2008, the organized sector employed 27.5
million workers, of which 17.3 million worked for government or
government owned entities. A majority of labour in India is
employed by unorganized sector (unincorporated). These include
family owned shops and street vendors. Above is a self-employed
child labourer in the unorganized retail sector of India.
Over 94 percent of India's working population is part of the

unorganized sector. In local terms, organized sector or formal sector in
India refers to licensed organizations, that is, those who are registered
and pay sales tax, income tax, etc. These include the publicly traded
companies, incorporated or formally registered entities, corporations,
factories, shopping malls, hotels, and large businesses. Unorganized
sector, also known as informal sector or own account enterprises, refers to
all unlicensed, self-employed or unregistered economic activity such
as owner manned general stores, handicrafts and handloom workers,
rural traders, farmers, etc. India's Ministry of Labour, in its 2008
report, classified the unorganized labour in India into four groups.
This classification categorized India's unorganized labour force by
occupation, nature of employment, specially distressed categories
and service categories. The unorganized occupational groups include
small and marginal farmers, landless agricultural labourers, share
croppers, fishermen, those engaged in animal husbandry, beedi
rolling, labeling and packing, building and construction workers,
leather workers, weavers, artisans, salt workers, workers in brick
kilns and stone quarries, workers in saw mills, and workers in oil
mills. A separate category based on nature of employment includes
attached agricultural labourers, bonded labourers, migrant workers,
contract and casual labourers. Another separate category dedicated
to distressed unorganized sector includes toddy tappers, scavengers,
carriers of head loads, drivers of animal driven vehicles, loaders and
unloaders. The last unorganized labour category includes service
2
workers such as midwives, domestic workers, barbers, vegetable and

fruit vendors, newspaper vendors, pavement vendors, hand cart
operators, and the unorganized retail. The unorganized sector has
low productivity and offers lower wages. Even though it accounted
for over 94 percent of workers, India's unorganized sector created just
57 percent of India's national domestic product in 2006, or about 9-
fold less per worker than the organized sector. [ According to Bhalla,
the productivity gap sharply worsens when rural unorganized sector
is compared to urban unorganized sector, with gross value-added
productivity gap spiking an additional 2 to 4-fold depending on
occupation. Some of lowest income jobs are in the rural unorganized
sectors. Poverty rates are reported to be significantly higher in
families where all working age members have only worked the
unorganized sector throughout their lives. Agriculture, dairy,
horticulture and related occupations alone employ 52 percent of
labour in India. About 30 million workers are migrant workers, most
in agriculture, and local stable employment is unavailable for them.
India's National Sample Survey Office in its 67th report found that
unorganized manufacturing, unorganized trading/retail and
unorganized services employed about 10 percent each of all workers
nationwide, as of 2010. It also reported that India had about 58 million
unincorporated non-Agriculture enterprises in 2010. In the organized
private sector with more than 10 employees per company, the biggest
employers in 2008 were manufacturing at 5 million; social services at
2.2 million, which includes private schools and hospitals; finance at
1.1 million which includes bank, insurance and real estate; and
agriculture at 1 million. India had more central and state government
employees in 2008, than employees in all private sector companies
combined. If state-owned companies and municipal government
employees were included, India had a 1.8:1 ratio between public
sector employees and private sector employees. In terms of gender
equality in employment, male to female ratio was 5:1 in government
and government owned enterprises; private sector fared better at 3:1
3
ratio. Combined, counting only companies with more than 10

employees per company, the organized public and private sector
employed 5.5 million women and 22 million men. Given its natural
rate of population growth and aging characteristics, India is adding
about 13 million new workers every year to its labour pool. India's
economy has been adding about 8 million new jobs every year
predominantly in low paying, unorganized sector. The remaining 5
million youth joining the ranks of poorly paid partial employment,
casual labour pool for temporary infrastructure and real estate
construction jobs, or in many cases, being unemployed.
Labour Relations
About 7 per cent of the 400 million-strong workforces were employed

in the formal sector (comprising government and corporates) in 2000
contributing 60 per cent of the nominal GDP of the nation. The Trade
Unions Act 1926 provided recognition and protection for a nascent
Indian labour union movement. The number of unions grew
considerably after independence, but most unions are small and
usually active in only one firm. In 1997, India had about 59,000 trade
unions registered with the government of India. Of these only 9,900
unions filed income and expenditure reports and claimed to
represent 7.4 million workers. The state of Kerala at 9,800 trade
unions had the highest number of registered unions, but only few
filed income and expenditure reports with the government of India.
The state of Karnataka had the fastest growth in number of unions
between the 1950s to 1990s. In 1995, India had 10 central federations
of trade unions, namely (arranged by number of member unions in
1980): INTUC, CITU, BMS, AITUC, HMS, NLO, UTUC, AIUTUC,
NFITU and TUCC. Each federation had numerous local trade union
affiliates, with the smallest TUCC with 65 and INTUC with 1604
affiliated unions. By 1989, BMS had become India's largest federation
of unions with 3,117 affiliated unions, while INTUC remained the
largest federation by combined number of members at 2.2 million. [
4
The largest federation of trade unions, INTUC, represents about 0.5%

of India's labour force in organized sector and unorganized sector. In
2010, over 98% of Indian workers did not belong to any trade unions
and were not covered by any collective bargaining agreements.
Evolution of Labour Relations: 1950-1990
A number of economists (e.g.: Fallon and Lucas, 1989; Besley and

Burgess, 2004) have studied the industrial relations climate in India,
with a large number of studies focusing on state-level differences in
India's Industrial Disputes Act. Some studies (e.g.: Besley and Burges,
2004) purport to show that pro-worker amendments to the Industrial
Disputes Act have had a negative impact on industrial output and
employment - as well as on poverty. However, these studies have
faced serious criticism on the grounds that the data used are
misinterpreted, and that the results are not robust with respect to
standard econometric tests. Between 1950 and 1970, labour disputes
nearly tripled in India, from an average of 1000 labour disputes per
year, to an average of 3000 labour disputes per year. The number of
labour relations issues within a year peaked in 1973 at 3,370 labour
disputes. The number of workers who joined labour disputes within
the same year, and stopped work, peaked in 1979, at 2.9 million
workers. The number of lost man-days from labour relation issues
peaked in 1982 at 74.6 million lost man-days, or about 2.7% of total
man-days in organized sector. While the 1970s experienced a spike in
labour unions and disputes, an sudden reduction in labour disputes
was observed during 1975-1977, when Indira Gandhi, then prime
minister, declared an emergency and amongst other things
suspended many civil rights including the worker's right to strike.
This is a table showing trend of organized Labour Force.
5
Public Sector Private Sector Live (Unemployment) Register

Year
(in millions) (in millions) (in millions)
1975 13.63 6.79 9.78
1980 15.48 7.40 17.84
1985 17.68 7.37 30.13
1990 19.06 7.68 36.30
1995 19.43 8.51 37.43
2000 19.14 8.65 42.00
2005 18.19 8.77 41.47
2010 17.55 11.45 40.17
Evolution of Labour Relations: 1990-2000
Union membership is concentrated in the organized sector, and in the

early 1990s total membership was about 9 million. Many unions are
affiliated with regional or national federations, the most important of
which are the Indian National Trade Union Congress, the All India
Trade Union Congress, the Centre of Indian Trade Unions, the Hind
Mazdoor Sabha, and the Bharatiya Mazdoor Sangh. Politicians have
often been union leaders, and some analysts believe that strikes and
other labour protests are called primarily to further the interests of
political parties rather than to promote the interests of the work force.
The government recorded 1,825 strikes and lockouts in 1990. As a
result, 24.1 million workdays were lost, 10.6 million to strikes and 13.5
million to lockouts. More than 1.3 million workers were involved in
these labour disputes. The number and seriousness of strikes and
lockouts have varied from year to year. However, the figures for 1990
and preliminary data from 1991 indicate declines from levels reached
in the 1980s, when between 33 and 75 million workdays per year were
lost because of labour disputes. In 1999, the government of India
recorded about 927 strikes and lockouts, or about half of those for
6
1990. The number of lost man-days were about the same for 1999 and
1991, even though Indian economic output and number of workers
had grown significantly over the 1990s.
Labour Issues in the Unorganized Sectors:
Many issues plague unorganized labour. India's Ministry of Labour

has identified significant issues with migrant, home or bondage
labourers and child labour.
Migrant labours
Migrant skilled and unskilled labourers of India constitute about 40

to 85 percent of low wage working population in many parts of the
Middle East. They are credited to having built many of the notable
buildings in the Arab countries, including the Burj Khalifa in Dubai
(above). Various claims of poor living conditions and labour abuse
have been reported. India has two broad groups of migrant labourers
- one that migrates to temporarily work overseas, and another that
migrates domestically on a seasonal and work available basis. About
4 million Indian-origin labourers are migrant workers in the middle
east alone. They are credited to have been the majority of workers
who built many of Dubai, Bahrain, Qatar and Persian Gulf modern
architecture, including the Burj Khalifa, the tallest building in world's
history which opened in January 2010. These migrant workers are
attracted by better salaries (typically US$2 to 5 per hour), possibility
of earning overtime pay, and opportunity to remit funds to support
their families in India. The Middle East-based migrant workers from
India remitted about US$20 billion in 2009. Once the projects are over,
they are required to return at their own expenses, with no
unemployment or social security benefits. In some cases, labour
abuses such as unpaid salaries, unsafe work conditions and poor
living conditions have been claimed. Domestic migrant workers have
been estimated to be about 4.2 million. These workers range from full-
7
time to part-time workers, temporary or permanent workers. They

are typically employed for remuneration in cash or kind, in any
household through any agency or directly, to do the household work,
but do not include any member of the family of an employer. Some
of these works exclusively for a single employer, while others work
for more than one employer. Some are live-in workers, while some
are seasonal. The employment of these migrant workers is typically
at the will of the employer and the worker, and compensation varies.
Debt Bondage
Bonded labour is a forced relationship between an employer and an

employee, where the compulsion is derived from outstanding debt.
Often the interest accrues at a rate that is so high that the bonded
labour lasts a very long periods of time, or indefinitely. Sometimes,
the employee has no options for employment in the organized or
unorganized sectors of India, and prefers the security of any
employment including one offered in bonded labour form. While
illegal, bonded labour relationships may be reinforced by force, or
they may continue from custom. Once an employee enters into a
bonded relationship, they are characterized by asymmetry of
information, opportunity, no time to search for alternative jobs and
high exit costs. Estimates of bonded labour in India vary widely,
depending on survey methods, assumptions and sources. Official
Indian government estimates claim a few hundred thousand
labourers are bonded labourers; while a 1978 estimate placed bonded
labour in India to be 2.62 million. The 32nd National Sample Survey
Organization survey in India estimated 343,000 bonded labourers in
16 major states, of which 285,379 were located and freed by 1996. The
major employment sectors for debt bonded labour include:
agriculture, stone quarries, brick kilns, religious and temple
workmen, pottery, rural weaving, fishing, forestry, betel and bidi
workers, carpet, illegal mining and fireworks. Child labour has been
found in family debt bonded situations. In each survey, debt bonded
8
labourers have been found in unorganized, unincorporated sector.

India enacted Bonded Labour System Abolition Act (1976) to prohibit
any and all forms of bonded labour practice, to protect the bonded
labour, and to criminalize individuals and entities that hire, keep or
seek bonded labour.
Child Labour
According to 2001 Census, India had 12.6 million children, aged 5–14,
who work either part-time or full-time. Of these over 60 percent work
in unorganized agriculture sector, and the rest in other unorganized
labour markets. Poverty, lack of schools, poor education
infrastructure and growth of unorganized economy are considered as
the most important causes of child labour in India. A 2009-2010
nationwide survey found child labour prevalence had reduced to 4.98
million children (or less than 2% of children in 5-14 age group).
Article 24 of India's constitution prohibits child labour, but only in
factories, mines or hazardous employment. The Indian Penal Code,
the Juvenile Justice (care and protection) of Children Act-2000, and
the Child Labour (Prohibition and Abolition) Act-1986 provide a
basis in law to identify, prosecute and stop child labour in India.
Nevertheless, child labour is observed in almost all unorganized,
small scale, informal sectors of the Indian economy.
Evolution of Labour Laws in India
The labour laws of India originated and express the socio-political

views of leaders such as Nehru from pre-1947 independence
movement struggle. These laws were expanded in part after debates
in Constituent Assemblies and in part from international conventions
and recommendations such as of International Labour Organization.
The current mosaic of Indian laws on employment are thus a
combination of India's history during its colonial heritage, India's
experiments with socialism, important human rights and the
9
conventions and standards that have emerged from the United

Nations. The laws cover the right to work of one's choice, right against
discrimination, prohibition of child labour, fair and humane
conditions of work, social security, protection of wages, redress of
grievances, right to organize and form trade unions, collective
bargaining and participation in management. India has numerous
labour laws such as those prohibiting discrimination and Child
labour, those that aim to guarantee fair and humane conditions of
work, those that provide social security, minimum wage, right to
organize, form trade unions and enforce collective bargaining. India
also has numerous rigid regulations such as maximum number of
employees per company in certain sectors of economy, and
limitations on employers on retrenchment and layoffs, requirement
of paperwork, bureaucratic process and government approval for
change in labour in companies even if these are because of economic
conditions. Indian labour laws are considered to be very highly
regulated and rigid as compared to those of other countries in the
world. The intensity of these laws has been criticized as the cause of
low employment growth, large unorganized sectors, underground
economy and low per capita income. These have led many to demand
reforms for Labour market flexibility in India. India has over 50 major
Acts and numerous laws that regulate employers in matters relating
to industrial relations, employee unions as well as who, how and
when enterprises can employ or terminate employment. Many of
these laws survive from British colonial times, while some have been
enacted after India's independence from Britain. India is a federal
form of government. Labour is a subject in the concurrent list of the
Indian Constitution and therefore labour matters are in the
jurisdiction of both central and state governments. Both central and
state governments have enacted laws on labour relations and
employment issues.
10
Some of the major laws relevant to India are:
Workmen's Compensation Act of 1923
The Workmen's Compensation Act compensates a workman for any

injury suffered during the course of his employment or to his
dependents in the case of his death. The Act provides for the rate at
which compensation shall be paid to an employee. This is one of
many social security laws in India.
Trade Unions Act of 1926
This Act enacted the rules and protections granted to Trade Unions
in India. This law was amended in 2001.
Payment of Wages Act of 1936
The Payment of Wages Act regulates by when wages shall be

distributed to employees by the employers. The law also provides the
tax withholdings the employer must deduct and pay to the central or
state government before distributing the wages.
Industrial Employment (Standing orders) Act of 1946
This Act requires employers in industrial establishments to define

and post the conditions of employment by issuing so-called standing
orders. These standing orders must be approved by the government
and duly certified. These orders aim to remove flexibility from the
employer in terms of job, hours, timing, leave grant, productivity
measures and other matters. The standing orders mandate that the
employer classify its employees, state the shifts, payment of wages,
rules for vacation, rules for sick leave, holidays, rules for termination
amongst others.
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Industrial Disputes Act of 1947
The Industrial Disputes act 1947 regulates how employers may

address industrial disputes such as lockouts, layoffs, retrenchment
etc. It controls the lawful processes for reconciliation, adjudication of
labour disputes. The Act also regulates what rules and conditions
employers must comply before the termination or layoff of a
workman who has been in continuous service for more than one year
with the employer. The employer is required to give notice of
termination to the employee with a copy of the notice to appropriate
government office seeking government's permission, explain valid
reasons for termination, and wait for one month before the
employment can be lawfully terminated. The employer may pay full
compensation for one month in lieu of the notice. Furthermore,
employer must pay an equivalent to 15 days’ average pay for each
completed year of employee’s continuous service. Thus, an employee
who has worked for 4 years in addition to various notices and due
process, must be paid a minimum of the employee's wage equivalent
to 60 days before retrenchment, if the government grants the
employer a permission to lay off.
Minimum Wages Act of 1948
The Minimum Wages Act prescribes minimum wages in all

enterprises, and in some cases, those working at home per the
schedule of the Act. Central and State Governments can and do revise
minimum wages at their discretion. The minimum wage is further
classified by nature of work, location and numerous other factors at
the discretion of the government. The minimum wage ranges
between 143 to 1120 per day for work in the so-called central sphere.
State governments have their own minimum wage schedules.
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Industries (Regulation and Development) Act of 1951
This law declared numerous key manufacturing industries under its

so-called. First Schedule. It placed many industries under common
central government regulations in addition to whatever laws state
government enact. It also reserved over 600 products that can only be
manufactured in small scale enterprises, thereby regulating who can
enter in these businesses, and above all placing a limit on the number
of employees per company for the listed products. The list included
all key technology and industrial products in the early 1950s,
including products ranging from certain iron and steel products, fuel
derivatives, motors, certain machinery, machine tools, to ceramics
and scientific equipment.
Employees Provident Fund and Miscellaneous Provisions Act of

1952
This Act seeks to ensure the financial security of the employees in an

establishment by providing for a system of compulsory savings. The
Act provides for establishments of a contributory Provident Fund in
which employees' contribution shall be at least equal to the
contribution payable by the employer. Minimum contribution by the
employees shall be 10-12% of the wages. This amount is payable to
the employee after retirement and could also be withdrawn partly for
certain specified purposes.
Maternity Benefit Act of 1961
The Maternity Benefit Act regulates the employment of the women

and maternity benefits mandated by law. Any woman employee who
worked in any establishment for a period of at least 80 days during
the 12 months immediately preceding the date of her expected
delivery, is entitled to receive maternity benefits under the Act. The
employer is required to pay maternity benefits, medical allowance,
maternity leave and nursing breaks.
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Payment of Bonus Act of 1965
This Act, applies to an enterprise employing 20 or more persons. The

Act requires employer to pay a bonus to persons on the basis of
profits or on the basis of production or productivity. The Act was
modified to require companies to pay a minimum bonus, even if the
employer suffers losses during the accounting year. This minimum is
currently 8.33 percent of the salary.
Payment of Gratuity Act of 1972
This law applies to all establishments employing 10 or more workers.

Gratuity is payable to the employee if he or she resigns or retires. The
Indian government mandates that this payment be at the rate of 15
days’ salary of the employee for each completed year of service
subject to a maximum of 1000000. It is an act to provide for a scheme
for the payment of gratuity to employees engaged in factories, mines,
oilfields, ports, plantations, shops or other establishments and for
matters connected therewith or incidental thereto.
Economists' criticisms
Scholars suggest India's rigid labour laws and excessive regulations

assumed to protect the labour are the cause of slow employment
growth in high paying, organized sector. India's labour-related acts
and regulations have led to labour-market rigidity. This encourages
shadow economy for entrepreneurs, an economy that prefers to
employ informal labour to avoid the complicated and opaque laws.
In particular, Indian labour legislation such as the Industrial Disputes
Act of 1947 added rigid labour laws and one-sided trade union laws.
Although the Act does not prohibit layoffs and retrenchments, it does
require entrepreneurs and companies to get the permission from
government officials to fire an employee for absenteeism, retrench
employees for economic reasons, or to close an economically
nonviable company. This bureaucratic process can stretch into years,
14
and the government officials have consistently and almost always

denied such permission. As a result, the scholars argue that India's
inflexible labour laws have created a strong disincentive to formally
register new companies and hire additional workers in existing
organized sector companies. Unlike China, Indian businesses have
avoided substituting India's abundant labour for export or domestic
opportunities, or use labour instead of expensive equipment for
quality control or other operations. These are reasons for India's weak
employment growth.
More recently, a few scholars have completed a comparative study

between states of India with different labour regulations. They
compared states of India who have amended labour legislations to
grant more flexibility to employers, to those states in India that have
made their labour laws even more rigid and complicated to comply
with. These studies find that states with flexible labour laws have
grown significantly faster. Flexible labour states have been able to
take advantage of the export opportunities, and the per capita
household income has risen much faster in states with flexible labour
laws. States with rigid labour laws have led local entrepreneurs to
prefer casual workers or contract workers with finite employment
time period; in essence, more rigid and inflexible labour law states see
increased informal employment.
A 2007 article in The Economist finds India to have the most

restrictive labour laws in any major economy of the world. India's
private sector, including its organized manufacturing sector, employs
about 10 million Indians. Manufacturing firms need to obtain
government permission to lay off workers from factories, and this
permission is usually denied if they have more than 100 staff. This
partly explains why most Indian firms are small: 87 percent of
employment in India's organized manufacturing sector is in firms
with fewer than ten employees, compared with only 5 percent in
China. Small Indian firms cannot reap economies of scale or exploit
15
the latest technology, and so suffer from lower productivity than if

they scaled up, employed more people and were much bigger
companies. This cripple’s Indian firms’ ability to rapidly expand or
adjust with changes in global economy, both during early
opportunity phase and during economic change. One exception is
white collar jobs, where companies have stronger lobbies and
employees are not unionized, so they have managed to operate freely
with a much larger workforce and have been able to lay off a
significant portion of their workforce without contravening labour
laws. In almost all cases white collar employees are forced to resign
under threat of negative recommendations and black-listing with
industry associations. Djankov and Ramalho have reviewed a
number of labour studies on developing countries including India.
They find, consistent with above criticisms, that countries with rigid
employment laws have larger unorganized sectors and higher
unemployment, especially among young workers. They also report
the rigid, inflexible labour laws are strongly related to low per capita
income.
16
Indian Labour Laws
Chapter - 2
Indian Labour Laws
Introduction and Learning Assistance: This chapter will take you to

the Indian Labour Laws, that were evolving over the years as and
when the world developed, and also concentrates on the
characteristics of Indian Regulations: Labour and Economy, and it
proceeds to the reflections of historical labour legislation since 1793.
The next level of learning proceeds to the British Era (1793–1947),
where numerous changes took place in the area of Industrial relations
across the world and introduces the developments happened in the
area of Industrial Relations from the Pre-liberalization period (1947–
1992) that seriously impacted the Indian Economic Policy which in
turned, added fillip to the evolution of Economic Liberalization and
Economic Development in India. The lesson concludes with the
entire changes in the labour Impact of Various Sectors in India:
Evolution to Present Scenario, with the implications happening
across the world and India.
Characteristics of Indian Regulations: Labour and Economy;
The combination of protectionist, import-substitution, Fabian

socialism, social democratic-inspired policies governed India for
some time after the end of British occupation. The economy was then
characterized by extensive regulation, protectionism, public
ownership of large monopolies, pervasive corruption and slow
growth. Since 1991, continuing economic liberalization has moved
the country towards a market-based economy. By 2008, India had
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established itself as one of the world's faster-growing economies.

Growth significantly slowed to 6.8% in 2008–09, but subsequently
recovered to 7.4% in 2009–10, while the fiscal deficit rose from 5.9%
to a high 6.5% during the same period. India's current account deficit
surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous
quarter. The unemployment rate for 2012–13, according to
Government of India's Labour Bureau, was 4.7% nationwide, by UPS
method; and 3% by NSSO method. India's consumer price inflation
ranged between 8.9 and 12% over the 2009-2013 period.
Reflections of Historical Labour Legislation; Since 1793
The citizens of the Indus Valley Civilization, a permanent settlement

that flourished between 2800 BC and 1800 BC, practiced agriculture,
domesticated animals, used uniform weights and measures, made
tools and weapons, and traded with other cities. Evidence of well-
planned streets, a drainage system and water supply reveals their
knowledge of urban planning, which included the world's first urban
sanitation systems and the existence of a form of municipal
government. The spice trade between India and Europe was the main
catalyst for the Age of Discovery. Maritime trade was carried out
extensively between South India and southeast and West Asia from
early times until around the fourteenth century AD. Both the Malabar
and Coromandel Coasts were the sites of important trading centres
from as early as the first century BC, used for import and export as
well as transit points between the Mediterranean region and
southeast Asia. Over time, traders organized themselves into
associations which received state patronage. Raychaudhuri and
Habib claim this state patronage for overseas trade came to an end by
the thirteenth century AD, when it was largely taken over by the local
Parsi, Jewish, Syrian christian and Muslim communities, initially on
the Malabar and subsequently on the Coromandel coast. Atashgah is
a temple built by Indian traders before 1745. The temple is west of
Caspian Sea, between West Asia and Eastern Europe. The inscription
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shown is in Sanskrit (above) and Persian. Other scholars suggest

trading from India to West Asia and Eastern Europe was active
between 14th and 18th century. During this period, Indian traders
had settled in Surakhani, a suburb of greater Baku, Azerbaijan. These
traders had built a Hindu temple, now preserved by the government
of Azerbaijan. French Jesuit Villotte, who lived in Azerbaijan in late
1600s, wrote this Indian temple was revered by Hindus; the temple
has numerous carvings in Sanskrit, dated to be between 1500 and
1745 AD. The Atashgah temple built by the Baku-resident traders
from India suggests commerce was active and prosperous for Indians
by the 17th century. Further north, the Saurashtra and Bengal coasts
played an important role in maritime trade, and the Gangetic plains
and the Indus valley housed several centres of river-borne commerce.
Most overland trade was carried out via the Khyber Pass connecting
the Punjab region with Afghanistan and onward to the Middle East
and Central Asia. Although many kingdoms and rulers issued coins,
barter was prevalent. Villages paid a portion of their agricultural
produce as revenue to the rulers, while their craftsmen received a part
of the crops at harvest time for their services. Sean Harkin estimates
China and India may have accounted for 60 to 70 percent of world
GDP in the 17th century. The Mughal economy functioned on an
elaborate system of coined currency, land revenue and trade. Gold,
silver and copper coins were issued by the royal mints which
functioned on the basis of free coinage.[75] The political stability and
uniform revenue policy resulting from a centralized administration
under the Mughals, coupled with a well-developed internal trade
network, ensured that India, before the arrival of the British, was to a
large extent economically unified, despite having a traditional
agrarian economy characterized by a predominance of subsistence
agriculture dependent on primitive technology. After the decline of
the Mughals, western, central and parts of south and north India were
integrated and administered by the Maratha Empire. After the loss at
the Third Battle of Panipat, the Maratha Empire disintegrated into
several confederate states, and the resulting political instability and
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armed conflict severely affected economic life in several parts of the

country, although this was compensated for to some extent by
localized prosperity in the new provincial kingdoms. By the end of
the eighteenth century, the British East India Company entered the
Indian political theatre and established its dominance over other
European powers. This marked a determinative shift in India's trade,
and a less powerful impact on the rest of the economy.
British Era (1793–1947)
There is no doubt that our grievances against the British Empire had
a sound basis. As the painstaking statistical work of the Cambridge
historian Angus Maddison has shown, India's share of world income
collapsed from 22.6% in 1700, almost equal to Europe's share of 23.3%
at that time, to as low as 3.8% in 1952. Indeed, at the beginning of the
20th century, "the brightest jewel in the British Crown" was the
poorest country in the world in terms of per capita income. From the
beginning of 19th century British East India Company's gradual
expansion and consolidation of power brought a major change in the
taxation and agricultural policies, which tended to promote
commercialization of agriculture with a focus on trade, resulting in
decreased production of food crops, mass impoverishment and
destitution of farmers, and in the short term, led to numerous
famines. The economic policies of the British Raj caused a severe
decline in the handicrafts and handloom sectors, due to reduced
demand and dipping employment. After the removal of international
restrictions by the Charter of 1813, Indian trade expanded
substantially and over the long term showed an upward trend. The
result was a significant transfer of capital from India to England,
which, due to the colonial policies of the British, led to a massive drain
of revenue rather than any systematic effort at modernization of the
domestic economy. Estimated per capita GDP of India and United
Kingdom from 1700 to 1950, inflation adjusted to 1990 US$. Other
estimates suggest a similar stagnation in India's per capita GDP and
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income during the colonial era. British territorial expansion in India

throughout the 19th century created an institutional environment
that, on paper, guaranteed property rights among the colonizers,
encouraged free trade, and created a single currency with fixed
exchange rates, standardized weights and measures and capital
markets within the company held territories. It also established a
system of railways and telegraphs, a civil service that aimed to be free
from political interference, a common-law and an adversarial legal
system. This coincided with major changes in the world economy –
industrialization, and significant growth in production and trade.
However, at the end of colonial rule, India inherited an economy that
was one of the poorest in the developing world, with industrial
development stalled, agriculture unable to feed a rapidly growing
population, a largely illiterate and unskilled labor force, and
extremely inadequate infrastructure.
The 1872 census revealed that 91.3% of the population of the

region constituting present-day India resided in villages, and
urbanization generally remained sluggish until the 1920s, due to the
lack of industrialization and absence of adequate transportation.
Subsequently, the policy of discriminating protection (where certain
important industries were given financial protection by the state),
coupled with the Second World War, saw the development and
dispersal of industries, encouraging rural-urban migration, and in
particular the large port cities of Bombay, Calcutta and Madras grew
rapidly. Despite this, only one-sixth of India's population lived in
cities by 1951. The impact of British occupation on India's economy
is a controversial topic. Leaders of the Indian independence
movement and economic historians have blamed colonial rule for the
dismal state of India's economy in its aftermath and argued that
financial strength required for industrial development in Britain was
derived from the wealth taken from India. At the same time, right-
wing historians have countered that India's low economic
performance was due to various sectors being in a state of growth and
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decline due to changes brought in by colonialism and a world that

was moving towards industrialization and economic integration.
Pre-liberalization period (1947–1992): Indian Economic Policy
Indian economic policy after independence was influenced by the

colonial experience, which was seen by Indian leaders as exploitative,
and by those leaders' exposure to British social democracy as well as
the planned economy of the Soviet Union.[88] Domestic policy tended
towards protectionism, with a strong emphasis on import
substitution industrialization, economic interventionism, a large
government-run public sector, business regulation, and central
planning, while trade and foreign investment policies were relatively
liberal. Five-Year Plans of India resembled central planning in the
Soviet Union. Steel, mining, machine tools, telecommunications,
insurance, and power plants, among other industries, were
effectively nationalized in the mid-1950s.
Fig 1: GDP of India Since 1820 AD to 2015, Source: Wikipedia.org
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Fig 1 above reflects the change in per capita GDP of India from 1820
AD to 2015 AD. All GDP numbers are inflation adjusted to 1990
International Geary-Khamis dollars. Data Source: Tables of Prof.
Angus Maddison (2010). The per capita GDP over various years and
population data can be downloaded in a spreadsheet from here. The
2015 estimate is retrieved from the International Monetary Fund.
Jawaharlal Nehru, the first prime minister of India, along with the
statistician Prasanta Chandra Mahalanobis, formulated and oversaw
economic policy during the initial years of the country's
independence. They expected favorable outcomes from their
strategy, involving the rapid development of heavy industry by both
public and private sectors, and based on direct and indirect state
intervention, rather than the more extreme Soviet-style central
command system. The policy of concentrating simultaneously on
capital- and technology-intensive heavy industry and subsidizing
manual, low-skill cottage industries was criticized by economist
Milton Friedman, who thought it would waste capital and labour,
and retard the development of small manufacturers. The rate of
growth of the Indian economy in the first three decades after
independence was derisively referred to as the Hindu rate of growth
by economists, because of the unfavorable comparison with growth
rates in other Asian countries.
Evolution of Economic Liberalization and Economic Development

in India: The GDP of India has risen rapidly since 1991. The collapse
of the Soviet Union, which was India's major trading partner, and the
Gulf War, which caused a spike in oil prices, resulted in a major
balance-of-payments crisis for India, which found itself facing the
prospect of defaulting on its loans. India asked for a $1.8 billion
bailout loan from the International Monetary Fund (IMF), which in
return demanded de-regulation. In response, Prime Minister
Narasimha Rao, along with his finance minister Manmohan Singh,
initiated the economic liberalization of 1991. The reforms did away
with the License Raj, reduced tariffs and interest rates and ended
23
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many public monopolies, allowing automatic approval of foreign

direct investment in many sectors. Since then, the overall thrust of
liberalization has remained the same, although no government has
tried to take on powerful lobbies such as trade unions and farmers,
on contentious issues such as reforming labour laws and reducing
agricultural subsidies. By the turn of the 21st century, India had
progressed towards a free-market economy, with a substantial
reduction in state control of the economy and increased financial
liberalization. This has been accompanied by increases in life
expectancy, literacy rates and food security, although urban residents
have benefited more than rural residents. While the credit rating of
India was hit by its nuclear weapons tests in 1998, it has since been
raised to investment level in 2003 by S&P and Moody's. India enjoyed
high growth rates for a period from 2003 to 2007 with growth
averaging 9% during this period. Growth then moderated due to the
global financial crisis starting in 2008. In 2003, Goldman Sachs
predicted that India's GDP in current prices would overtake France
and Italy by 2020, Germany, UK and Russia by 2025 and Japan by
2035, making it the third largest economy of the world, behind the US
and China. India is often seen by most economists as a rising
economic superpower and is believed to play a major role in the
global economy in the 21st century. Starting in 2012, India entered a
period of more anaemic growth, with growth slowing down to 5.6%.
Other economic problems also became apparent: a plunging Indian
rupee, a persistent high current account deficit and slow industrial
growth. Hit by the U.S. Federal Reserve's decision to taper
quantitative easing, foreign investors had been rapidly pulling out
money from India though this has now reversed with the stock
market at near all-time high and the current account deficit
narrowing substantially.
India started recovery in 2014-15 when the growth rate

accelerated to 7.2%. In 2015, Indian went through a startup boom and
manufacturing growth skyrocketing due to which the growth in 2015-
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16 accelerated to 7.6%, which means for the first time since 1990 India
grew faster than China which registered 6.9% growth in 2015. The
economic growth is expected to be 8.0%+ in 2016-17. In Mid 2015
during the global stock market rout, India also witnessed a sharp fall
in stock markets and the rupee weakened. It was repeated again in
January 2016. India is ranked 130th out of 189 countries in the World
Bank's 2015 ease of doing business index. In terms of dealing with
construction permits and enforcing contracts, it is ranked among the
10 worst in the world, while it has a relatively favorable ranking when
it comes to protecting minority investors or getting credit.
Labour Impact of Various Sectors in India: Evolution to Present

Scenario
Fig 2: Percent labor employment in India by its economic sectors

(2010), Source: Wikipedia.org
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The GDP contributions of various sectors of Indian economy

have evolved between 1951 and 2013, as its economy has diversified
and developed. Historically, India has classified and tracked its
economy and GDP as three sectors — agriculture, industry and
services. Agriculture includes crops, horticulture, milk and animal
husbandry, aquaculture, fishing, sericulture, aviculture, forestry and
related activities. Industry includes various manufacturing sub-
sectors. India's definition of services sector includes its construction,
retail, software, IT, communications, hospitality, infrastructure
operations, education, health care, banking and insurance, and many
other economic activities.
Agriculture
Agriculture in India, Forestry in India, Animal husbandry in India,

Fishing in India and Natural resources in India; India ranks second
worldwide in farm output. Agriculture and allied sectors like
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Indian Labour Laws
forestry, logging and fishing accounted for 17% of the GDP and
employed 49% of the total workforce in 2014. As the Indian economy
has diversified and grown, agriculture's contribution to GDP has
steadily declined from 1951 to 2011, yet it is still the largest
employment source and a significant piece of the overall socio-
economic development of India. Crop yield per unit area of all crops
has grown since 1950, due to the special emphasis placed on
agriculture in the five-year plans and steady improvements in
irrigation, technology, application of modern agricultural practices
and provision of agricultural credit and subsidies since the Green
Revolution in India. However, international comparisons reveal the
average yield in India is generally 30% to 50% of the highest average
yield in the world. The states of Uttar Pradesh, Punjab, Haryana,
Madhya Pradesh, Andhra Pradesh, Telangana, Bihar, West Bengal,
Gujarat and Maharashtra are key contributors to Indian agriculture.
India receives an average annual rainfall of 1,208 millimeters (47.6 in)

and a total annual precipitation of 4000 billion cubic metres, with the
total utilizable water resources, including surface and groundwater,
amounting to 1123 billion cubic metres.546,820 square kilometres
(211,130 sq mi) of the land area, or about 39% of the total cultivated
area, is irrigated. India's inland water resources including rivers,
canals, ponds and lakes and marine resources comprising the east
and west coasts of the Indian ocean and other gulfs and bays provide
employment to nearly six million people in the fisheries sector. In
2010, India had the world's sixth largest fishing industry. Amul Dairy
Plant at Anand was a highly successful co-operative started during
the green revolution in the 1960s. India exports more than 100,000
tonnes of processed cashew kernels every year. There are more than
600 cashew processing units in Kollam alone. India is the largest
producer in the world of milk, jute and pulses, and also has the
world's second largest cattle population with 170 million animals in
2011. It is the second largest producer of rice, wheat, sugarcane,
cotton and groundnuts, as well as the second largest fruit and
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vegetable producer, accounting for 10.9% and 8.6% of the world fruit
and vegetable production respectively. India is also the second largest
producer and the largest consumer of silk in the world, producing
77,000 tons in 2005. India is the largest exporter of cashew kernels
and cashew nut shell liquid (CNSL). Foreign exchange earned by the
country through the export of cashew kernels during 2011-12 reached
Rs.4,390 crore based on statistics from the Cashew Export Promotion
Council of India (CEPCI). 131,000 tonnes of kernels were exported
during 2011-12. There are about 600 cashew processing units in
Kollam, Kerala. India's food grains production remained stagnant at
approximately 252 million tonnes (MT) during both the 2015-16 and
2014-15 crop years (July- June). India exports several agriculture
products, such as Basmati rice, wheat, cereals, spices, fresh fruits, dry
fruits, buffalo beef meat, cotton, tea, coffee and other cash crops
particularly to the Middle East, Southeast and East Asian countries.
It earns about 10 percent of its export earnings from this trade.
Industry
Crude Oil constitutes about a third of the country's total imports,

India is a net exporter of petroleum products. Industry accounts for
26% of GDP and employs 22% of the total workforce. According to
the World Bank, India's industrial manufacturing GDP output in 2015
was 6th largest in the world on current US dollar basis ($559 billion),
and 9th largest on inflation adjusted constant 2005 US dollar basis
($197.1 billion). The Indian industrial sector underwent significant
changes as a result of the economic liberalization in India economic
reforms of 1991, which removed import restrictions, brought in
foreign competition, led to the privatization of certain government
owned public sector industries, liberalized the FDI regime, improved
infrastructure and led to an expansion in the production of fast-
moving consumer goods. Post-liberalization, the Indian private
sector was faced with increasing domestic as well as foreign
competition, including the threat of cheaper Chinese imports. It has
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since handled the change by squeezing costs, revamping

management, and relying on cheap labour and new technology.
However, this has also reduced employment generation even by
smaller manufacturers who earlier relied on relatively labor-intensive
processes.
Petroleum products and chemicals
Petroleum products and chemicals are a major contributor to India's

industrial GDP, and together they contribute over 34% of its export
earnings. India hosts many oil refinery and petrochemical operations,
including the world's largest refinery complex in Jamnagar that
processes 1.24 million barrels of crude per day. By volume, the Indian
chemical industry was the third largest producer in Asia, and it alone
contributed 5% of its GDP. India is one of the top 5 world producers
of agrochemicals, polymers and plastics, dyes and various organic
and inorganic chemicals. Despite being a large producer and
exporter of chemicals, India is a net importer of chemicals given its
domestic demand for products.
Pharmaceuticals
Pharmaceutical industry in India; The Indian pharmaceutical

industry has grown in recent years to become a major manufacturer
of health care products to the world. India produced about 8 per cent
of the global pharmaceutical supply in 2011 by value, including over
60,000 generic brands of medicines sold around the world. t is one
of the fastest-growing sub-sectors of its industry and a significant
contributor of India's export earnings. The state of Gujarat has
become a hub for the manufacture and export of pharmaceuticals and
APIs. The industry is expected to double from its 2012 levels to US$55
billion by 2020, according to a McKinsey report.
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Engineering
Mahindra XUV 500 is one of the several indigenously designed and

manufactured vehicles. The engineering industry of India is the
largest sub-sector of its industry GDP and is one of three largest
foreign exchange earning sectors for the country. It includes transport
equipment, machine tools, capital goods, transformers, switchgears,
furnaces, cast and forged simple to precision parts for turbines,
automobiles and railways. The industry employs about four million
workers. On a value-added basis, India's engineering industry sector
exported $67 billion worth of engineering goods in the 2013-14 fiscal
year, and served part of the domestic demand for engineering goods.
The engineering industry of India includes its growing car,
motorcycle and scooters industry, as well as productivity machinery
such as tractors. India manufactured and assembled about 18 million
passenger and utility vehicles in 2011, of which 2.3 million were
exported. India is the world's largest producer of and the largest
market for tractors, accounting for 29% of world's tractor production
in 2013. India is the 12th largest producer and 7th largest consumer
of machine tools in the world.
Gems and jewellery
The gems and jewellery industry are an ancient and continuing major
component of the Indian economy. India is one of the world's largest
diamonds and gem polishing and jewellery manufacturing center; it
is also one of the two largest consumers of gold. After crude oil and
petroleum products, the export and import of gold, precious metals,
precious stones, gems and jewellery accounts for the largest portion
of India's global trade. The industry contributes about 7% of India's
GDP, employs millions, and is a major source of its foreign exchange
earnings. The gems and jewellery industry, in 2013, created Rs.
251,000 crores (US$37 billion) in economic output on value added
basis. It is growing sector of Indian economy, and A.T. Kearney
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projects it to grow to ₹500,000 crore (US$74 billion) by 2018. The gems

and jewellery industry have been an ancient art and continuous
economic activity in India, traced over several thousand years. Till
18th century, India was the world's only known major reliable source
of diamond mining and its processing. Now, South Africa and
Australia are the major sources of diamonds and precious metals, but
along with Antwerp, New York, and Ramat Gan, Indian cities such
as Surat and Mumbai are the hubs of world's jewellery polishing,
cutting, precision finishing, supply and trade. Unlike other centers,
the gems and jewellery economic activity in India is primarily
artisans driven, is manual, the sector is highly fragmented, and 96%
of the industry is served by family owned operations. Indian gem
and jewellery economy's particular strength is in precision cutting,
polishing and processing small diamonds (below one carat). Yet,
India is also a hub for processing of larger diamonds, pearls and other
precious stones. About 11 out of 12 diamonds set in any jewellery in
the world are cut and polished in India. It is also a major hub of gold
and other precious metal-based precision jewellery industry. Its
domestic demand for gold and jewellery products is another driver
of India's GDP.
Textile
Textile industry contributes about 4 per cent to the country’s GDP, 14

per cent of the industrial production, and 17 per cent to export
earnings. India's textile industry has transformed from a declining
sector to a rapidly developing one in recent years. After freeing the
industry in 2004–2005 from a number of limitations, primarily
financial, the government gave a green light to massive investment
inflows – both domestic and foreign. During the period from 2004 to
2008, total investment into textile sector increased by 27 billion
dollars. Ludhiana produces 90% of woollens in India and is known as
the Manchester of India. Tirupur has gained universal recognition as
the leading source of hosiery, knitted garments, casual wear and
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sportswear. Expanding textile centers such as Ichalkaranji enjoy one

of the highest per capita incomes in the country. India's cotton farms,
fiber and textile industry provides employment to 45 million people
in India, including some child labour (1%). The sector is estimated to
employ around 400,000 children under the age of 18.
Mining
India's mining industry was the 4th largest producer of minerals in

the world by volume, and 8th largest producer by value in 2009. In
2013, it mined and processed 89 minerals, of which 4 were fuel, 3 were
atomic energy minerals, and 80 non-fuel. The government owned
public sector accounted for 68% of mineral produced by volume, in
2011-12. Nearly 50% of India's mining industry, by output value, is
concentrated in eight states - Odisha, Rajasthan, Chhattisgarh,
Andhra Pradesh, Telangana, Jharkhand, Madhya Pradesh and
Karnataka. Another 25% of the output by value comes from its
offshore oil and gas resources. India operated about 3,000 mines in
2010, half of which were coal, limestone and iron ore. On output value
basis, India's was one of five largest producers of mica, chromite, coal,
lignite, iron ore, bauxite, barites, zinc, manganese; while being one of
the 10 largest global producers of many other minerals. India was
fourth largest producer of steel in the world in 2013, and seventh
largest producer of aluminum. India's mineral resources are vast.
However, its mining industry has declined — contributing 2.3% of its
GDP in 2010 compared to 3% in 2000, and employed 2.9 million
people — a decreasing percentage of its total labor. India is a net
importer of many minerals including coal. India's mining sector
decline is because of complex permit, regulatory and administrative
procedures that take 6 to 20-fold more time than other mining
countries such as Australia and South Africa, inadequate
infrastructure, shortage of capital resources, and slow adoption of
ecologically and environmentally sustainable technologies.
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Indian Labour Laws
Services
Bangalore, along with cities such as Pune, Hyderabad, Chennai and

Gurgaon, is a major IT services center. India's services sector has the
largest share in the GDP, accounting for 57% in 2012, up from 15% in
1950. It is the 7th largest in the world by nominal GDP, and third
largest when purchasing power is taken into account. The services
sector provides employment to 27% of the work force. Information
technology and business process outsourcing are among the fastest-
growing sectors, having a cumulative growth rate of revenue 33.6%
between 1997 and 1998 and 2002–03 and contributing to 25% of the
country's total exports in 2007–08. The growth in the IT sector is
attributed to increased specialization, and an availability of a large
pool of low cost, highly skilled, educated and fluent English-speaking
workers, on the supply side, matched on the demand side by
increased demand from foreign consumers interested in India's
service exports, or those looking to outsource their operations. The
share of the Indian IT industry in the country's GDP increased from
4.8% in 2005–06 to 7% in 2008. In 2009, seven Indian firms were listed
among the top 15 technology outsourcing companies in the world.
Energy and Power
The primary energy consumption in India is the third biggest after

China and USA with 5.3% global share in the year 2015. Coal and
crude oil together account for 85% of the primary energy
consumption of India. India's oil reserves meet 25% of the country's
domestic oil demand. As of April 2015, India's total proven crude oil
reserves is 763.476 million metric tons, while gas reserves stood at
1,490 billion cubic metres (53 trillion cubic feet). Oil and natural gas
fields are located offshore at Bombay High, Krishna Godavari Basin
and the Cauvery Delta, and onshore mainly in the states of Assam,
Gujarat and Rajasthan. India is the fourth largest consumer of oil in
the world and net oil imports are nearly 820,000 crore (US$120 billion)
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Indian Labour Laws
worth of oil in 2014-15, which had an adverse effect on its current

account deficit. The petroleum industry in India mostly consists of
public sector companies such as Oil and Natural Gas Corporation
(ONGC), Hindustan Petroleum Corporation Limited (HPCL), Bharat
Petroleum Corporation Limited (BPCL) and Indian Oil Corporation
Limited (IOCL). There are some major private Indian companies in
the oil sector such as Reliance Industries Limited (RIL) which
operates the world's largest oil refining complex. India became the
world's third largest producer of electricity in the year 2013 with 4.8%
global share in electricity generation surpassing Japan and Russia.
By the end of the calendar year 2015, India has become electricity
surplus with many of the power stations idling for want of electricity
demand. The utility electricity sector had an installed capacity of 303
GW as of 31 May 2016 of which thermal power contributed 69.8%,
hydroelectricity 15.2%, other sources of renewable energy 13.0%, and
nuclear power 2.1%. India meets most of its domestic electricity
demand through its 106 billion tonnes of proven coal reserves. India
is also rich in certain alternative sources of energy with significant
future potential such as solar, wind and biofuels (jatropha,
sugarcane). India's dwindling uranium reserves stagnated the
growth of nuclear energy in the country for many years. Recent
discoveries of natural uranium in Tummalapalle belt, which promises
to be one of the top 20 of the world's reserves, and an estimated
reserve of 846,477 metric tons (933,081 short tons) of thorium– about
25% of world's reserves – are expected to fuel the country's ambitious
nuclear energy program in the long-run. The Indo-US nuclear deal
has also paved the way for India to import uranium from other
countries.
Infrastructure
India's infrastructure and transport sector contributes about 5% of its

GDP. India has the world's second largest road network in
quantitative terms, covering more than 4.3 million kilometers.
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Qualitatively, India's roads are a mix of modern highways and

narrow, unpaved roads. India also has the lowest kilometer lane road
density per 100,000 people among G-27 countries — leading to traffic
congestion. It is upgrading its infrastructure. As of May 2014, India
had completed and placed in use over 22,600 kilometers of recently
built 4 or 6-lane highways connecting most of its major
manufacturing, commercial and cultural centers. India's road
infrastructure carries 60% of freight and 87% of passenger traffic.
Indian Railways is the fourth largest rail network in the world, with
a track length of 114,500 kilometers and 7,172 stations. This
government owned and operated railway network carried an average
of 23 million passengers a day, and over a billion tonnes of freight a
year. India has a coastline of 7,500 kilometers with 13 major ports
and 60 operational non-major ports, which together handle 95% of the
country’s external trade by volume and 70% by value (rest handled
by air). Nhava Sheva, Mumbai is the largest public port, while
Mundra is the largest private sea port. The airport infrastructure of
India includes 125 airports, of which 66 airports are licensed to handle
both passengers and logistics. About 74 people out of 100 have land
or wireless telephones in India, or about 927 million telephone
subscribers, two-thirds of them in urban areas. Internet use has been
growing rapidly in India, with an estimated 243 million users in June
2014. This is projected to grow to 330–370 million users by 2016.
Retail
The neighborhood Grocery Shops handle much of retail trade both in

rural and urban India. Retail industry contributes between 14–15%
to 20% of India's GDP. The Indian retail market is estimated to be
US$600billion and one of the top five retail markets in the world by
economic value. India is one of the fastest-growing retail markets in
the world, and is projected to reach $1.3 trillion by 2020. India's
retailing industry mostly consists of the local mom and pop store,
owner manned shops and street vendors. Organized retail
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Indian Labour Laws
supermarkets are growing but small, with a market share of 4% as of

2008. In 2012 government permitted 51% FDI in multi brand retail
and 100% FDI in single brand retail. However, a lack of back end
warehouse retail infrastructure, as well as state level permits and red
tape continues to limit organized retail's growth in Indian economy.
Over thirty regulations such as "signboard licenses" and "anti-
hoarding measures" have to be complied before a store can open
doors. There are taxes for moving goods from state to state, and even
within states. The lack of infrastructure and efficient retail network,
according to The Wall Street Journal, causes a third of India's
agriculture produce to be lost from spoilage.
Tourism
The state of Kerala in recent decades became a major international

tourist destination after the state government promoted its natural
coastline with backwaters. International and domestic tourism
industry contributes more to India's GDP than its textile sector. India
attracted 7.70 million international tourist arrivals and $19.75 billion
in foreign exchange earnings from tourism receipts in 2014. Tourism
to India has seen a steady growth, year on year, from 4.45 million
arrivals in 2006 to 7.7 million arrivals in 2014. The United States is the
largest source of international tourists to India, while European
Union nations and Japan are other major sources of international
tourists. Less than 10% of international tourists visit the Taj Mahal,
with majority visiting other cultural, thematic and holiday circuits.
Over 12 million Indian citizens take international trips each year for
tourism, while domestic tourism within India adds about 740 million
Indian travellers. The combined international and domestic tourism
contributed 5.92% of India's GDP, and 9.3% to its employment in
2011. India has a fast-growing medical tourism sector of its health
care economy offering low cost health and long term care.
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Banking and Finance
The Indian money market is classified into the organized sector,

comprising private, public and foreign owned commercial banks and
cooperative banks, together known as scheduled banks, and the
unorganized sector, which includes individual or family owned
indigenous bankers or money lenders and non-banking financial
companies. The unorganized sector and microcredit are still
preferred over traditional banks in rural and sub-urban areas,
especially for non-productive purposes, like ceremonies and short
duration loans. Prime Minister Indira Gandhi nationalized 14 banks
in 1969, followed by six others in 1980, and made it mandatory for
banks to provide 40% of their net credit to priority sectors like
agriculture, small-scale industry, retail trade, small businesses, etc. to
ensure that the banks fulfill their social and developmental goals.
Since then, the number of bank branches has increased from 8,260 in
1969 to 72,170 in 2007 and the population covered by a branch
decreased from 63,800 to 15,000 during the same period. The total
bank deposits increased from 59.1 billion (US$880 million) in 1970–71
to 38,309.22 billion (US$570 billion) in 2008–09. Despite an increase of
rural branches, from 1,860 or 22% of the total number of branches in
1969 to 30,590 or 42% in 2007, only 32,270 out of 500,000 villages are
covered by a scheduled bank. India's gross domestic saving in 2006–
07 as a percentage of GDP stood at a high 32.8%. More than half of
personal savings are invested in physical assets such as land, houses,
cattle, and gold. The government owned public sector banks hold
over 75% of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively. Since
liberalization, the government has approved significant banking
reforms. While some of these relate to nationalized banks, like
encouraging mergers, reducing government interference and
increasing profitability and competitiveness, other reforms have
opened up the banking and insurance sectors to private and foreign
players.
37
External Trade and Investment Development and Its Impact in India
Chapter - 3
External Trade and Investment Development

and Its Impact in India

the areas of Internal and External trades and its related issues and will
help you to learn the External Trade and Investment Development
and Its Impact in India, with respect to the contemporary issues
happening across the world. The chapter proceeds to the Indian
External Trade, Investments and Relations, with few case examples
and takes you to the Foreign Direct Investment with special reference
to the Indian Scenario. The consumption culture of India, in terms of
Income and consumption and impact on Indian Labour is the next
area of learning with emerging economic trends and issues that
impacts the standard of living in India.
Indian External Trade, Investments and Relations:
A map showing the global distribution of Indian exports in

2006 as a percentage of the top market (USA – $20.9 billion). Until the
liberalization of 1991, India was largely and intentionally isolated
from the world markets, to protect its economy and to achieve self-
reliance. Foreign trade was subject to import tariffs, export taxes and
quantitative restrictions, while foreign direct investment (FDI) was
restricted by upper-limit equity participation, restrictions on
technology transfer, export obligations and government approvals;
these approvals were needed for nearly 60% of new FDI in the
industrial sector. The restrictions ensured that FDI averaged only
around $200 million annually between 1985 and 1991; a large
38
percentage of the capital flows consisted of foreign aid, commercial

borrowing and deposits of non-resident Indians. India's exports were
stagnant for the first 15 years after independence, due to general
neglect of trade policy by the government of that period. Imports in
the same period, due to industrialization being nascent, consisted
predominantly of machinery, raw materials and consumer goods.
Fig 3: India’s International Trade Scenario Comparison, Source:

Wikipedia.org
39
Since liberalization, the value of India's international trade has

increased sharply, with the contribution of total trade in goods and
services to the GDP rising from 16% in 1990–91 to 47% in 2008–10.
India accounts for 1.44% of exports and 2.12% of imports for
merchandise trade and 3.34% of exports and 3.31% of imports for
commercial services trade worldwide. India's major trading partners
are the European Union, China, the United States of America and the
United Arab Emirates. In 2006–07, major export commodities
included engineering goods, petroleum products, chemicals and
pharmaceuticals, gems and jewellery, textiles and garments,
agricultural products, iron ore and other minerals. Major import
commodities included crude oil and related products, machinery,
electronic goods, gold and silver. In November 2010, exports
increased 22.3% year-on-year to 850.63 billion (US$13 billion), while
imports were up 7.5% at 1,251.33 billion (US$19 billion). Trade deficit
for the same month dropped from 468.65 billion (US$7.0 billion) in
2009 to 400.7 billion (US$6.0 billion) in 2010. India is a founding-
member of General Agreement on Tariffs and Trade (GATT) since
1947 and its successor, the WTO. While participating actively in its
general council meetings, India has been crucial in voicing the
concerns of the developing world. For instance, India has continued
its opposition to the inclusion of such matters as labour and
environment issues and other non-tariff barriers to trade into the
WTO policies. Since independence, India's balance of payments on its
current account has been negative. Since economic liberalization in
the 1990s, precipitated by a balance of payment crisis, India's exports
rose consistently, covering 80.3% of its imports in 2002–03, up from
66.2% in 1990–91. However, the global economic slump followed by
a general deceleration in world trade saw the exports as a percentage
of imports drop to 61.4% in 2008–09. India's growing oil import bill
is seen as the main driver behind the large current account deficit,
which rose to $118.7 billion, or 11.11% of GDP, in 2008–09. Between
January and October 2010, India imported $82.1 billion worth of
crude oil. Indian economy has run a trade deficit every year over
40
2002-2012 period, with a merchandise trade deficit of US$189 billion

in 2011-12. Its trade with China has the largest deficit, about $31
billion in 2013. India's reliance on external assistance and
concessional debt has decreased since liberalization of the economy,
and the debt service ratio decreased from 35.3% in 1990–91 to 4.4% in
2008–09. In India, External Commercial Borrowings (ECBs), or
commercial loans from non-resident lenders, are being permitted by
the Government for providing an additional source of funds to Indian
corporates. The Ministry of Finance monitors and regulates them
through ECB policy guidelines issued by the Reserve Bank of India
under the Foreign Exchange Management Act of 1999. India's foreign
exchange reserves have steadily risen from $5.8 billion in March 1991
to $318.6 billion in December 2009. In 2012, the United Kingdom
announced an end to all financial aid to India, citing the growth and
robustness of Indian economy.
Foreign Direct Investment: Indian Scenario
As the third-largest economy in the world in PPP terms, India

has attracted foreign direct investment During the year 2011, FDI
inflow into India stood at $36.5 billion, 51.1% higher than 2010 figure
of $24.15 billion. India has strengths in telecommunication,
information technology and other significant areas such as auto
components, chemicals, apparels, pharmaceuticals, and jewellery.
Despite a surge in foreign investments, rigid FDI policies were a
significant hindrance. Over time, India has adopted a number of FDI
reforms. India has a large pool of skilled managerial and technical
expertise. The size of the middle-class population stands at
300 million and represents a growing consumer market. India's
liberalized its FDI policy in 2005, allowing up to a 100% FDI stake in
ventures. Industrial policy reforms have substantially reduced
industrial licensing requirements, removed restrictions on expansion
and facilitated easy access to foreign technology and foreign direct
investment FDI. The upward moving growth curve of the real-estate
41
sector owes some credit to a booming economy and liberalized FDI

regime. In March 2005, the government amended the rules to allow
100% FDI in the construction sector, including built-up infrastructure
and construction development projects comprising housing,
commercial premises, hospitals, educational institutions, recreational
facilities, and city- and regional-level infrastructure. Over 2012-14,
India extended these reforms to defense, telecom, oil, retail, aviation
and a number of other sectors. During 2000–10, the country attracted
$178 billion as FDI. The inordinately high investment from Mauritius
is due to routing of international funds through the country given
significant tax advantages; double taxation is avoided due to a tax
treaty between India and Mauritius, and Mauritius is a capital gains
tax haven, effectively creating a zero-taxation FDI channel.
From India Since 2000, Indian companies have expanded

overseas, investing FDI and creating jobs outside India. Over the
2006-2010 period, FDI by Indian companies outside India amounted
to 1.34 per cent of its GDP. Indian companies have deployed FDI and
started operations in the United States, while others have expanded
in Europe and Africa. The Indian company Tata is United Kingdom's
largest manufacturer and private sector employer.
Income and consumption and impact on Indian Labour
Gini Index of India compared to other countries per World

Bank data tables as of 2014. India's gross national income per capita
had experienced high growth rates since 2002. India's Per Capita
Income has tripled from Rs. 19,040 in 2002–03 to Rs. 53,331 in 2010–
11, averaging 13.7% growth over these eight years peaking 15.6% in
2010–11. However, growth in the inflation adjusted Per capita income
of the nation slowed to 5.6% in 2010–11, down from 6.4% in the
previous year. These consumption levels are on an individual basis,
not household. On a household basis, the average income in India
was $6,671 per household in 2011. Per 2011 census, India has about
42
330 million houses and 247 million households. The household size
in India has dropped in recent years, with 2011 census reporting 50%
of households have 4 or less members. The average per 2011 census
was 4.8 members per household, and included surviving
grandparents. These households produced a GDP of about
$1.7 trillion. The household consumption patterns per 2011 census:
approximately 67% of households use firewood, crop residue or cow
dung cakes for cooking purposes; 53% do not have sanitation or
drainage facilities on premises; 83% have water supply within their
premises or 100 metres from their house in urban areas and
500 metres from the house in rural areas; 67% of the households have
access to electricity; 63% of households have landline or mobile
telephone connection; 43% have a television; 26% have either a two-
wheel (motorcycle) or four wheel (car) vehicle. Compared to 2001,
these income and consumption trends represent moderate to
significant improvements. One report in 2010 claimed that the
number of high-income households has crossed lower income
households. Per capita gross national income of India in 2013
compared to other countries, on Purchasing Power Parity basis, per
World Bank data. The World Bank reviewed and proposed revisions
in May 2014, to its older poverty calculation methodology of 2005 and
purchasing power parity basis for measuring poverty worldwide,
including India. According to this revised methodology, the world
had 872.3 million people below the new poverty line, of which 179.6
million people lived in India. In other words, India with 17.5% of total
world's population, had 20.6% share of world's poorest in 2013.
According to a 2005-2006 survey, India had about 61 million children
under the age of 5 who were chronically malnourished. A 2011
UNICEF report stated that that between 1990 and 2010, India
achieved a 45 percent reduction in under age 5 mortality rates, and
now ranks 46 in 188 countries on this metric. Since the early 1950s,
successive governments have implemented various schemes to
alleviate poverty, under central planning, that have met with partial
success. In 2005, Indian government enacted the Mahatma Gandhi
43
National Rural Employment Guarantee Act, guaranteeing 100 days

of minimum wage employment to every rural household in all the
districts of India. In 2011, this Rural Employment Guarantee
programme was widely criticized as no more effective than other
poverty reduction programs in India. Despite its best intentions,
MGNREGA is beset with controversy about corrupt officials, deficit
financing as the source of funds, poor quality of infrastructure built
under this program, and unintended destructive effect on poverty.
Other studies suggest that the Rural Employment Guarantee welfare
program has helped in reducing rural poverty in some cases. Yet
other studies report that India's economic growth has been the driver
of sustainable employment and poverty reduction, but a sizable
population remains in poverty.
Indian Employment Scenario: Sector wise comparison
Agricultural and allied sectors accounted for about 52.1% of

the total workforce in 2009–10. While agriculture employment has
fallen over time in percentage of labor employed, services which
includes construction and infrastructure have seen a steady growth
accounting for 20.3% of employment in 2012–13. Of the total
workforce, 7% is in the organized sector, two-thirds of which are in
the government controlled public sector. About 51.2% of the labor in
India is self-employed. According to a 2005–06 survey, there is a
gender gap in employment and salaries. In rural areas, both men and
women are primarily self-employed, mostly in agriculture. In urban
areas, salaried work was the largest source of employment for both
men and women in 2006. Unemployment in India is characterized by
chronic (disguised) unemployment. Government schemes that target
eradication of both poverty and unemployment (which in recent
decades has sent millions of poor and unskilled people into urban
areas in search of livelihoods) attempt to solve the problem, by
providing financial assistance for setting up businesses, skill honing,
setting up public sector enterprises, reservations in governments, etc.
44
The decline in organized employment due to the decreased role of the

public sector after liberalization has further underlined the need for
focusing on better education and has also put political pressure on
further reforms. India's labour regulations are heavy even by
developing country standards and analysts have urged the
government to abolish or modify them in order to make the
environment more conducive for employment generation. The 11th
five-year plan has also identified the need for a congenial
environment to be created for employment generation, by reducing
the number of permissions and other bureaucratic clearances
required. Further, inequalities and inadequacies in the education
system have been identified as an obstacle preventing the benefits of
increased employment opportunities from reaching all sectors of
society. Child labour in India is a complex problem that is basically
rooted in poverty. The Indian government has implemented, since
the 1990s, a variety of programs to eliminate child labor. These have
included setting up schools, launching free school lunch program,
setting up special investigation cells and others. Desai et al. state that
recent studies on child labour in India have found some pockets of
industries in which children are employed, but overall, relatively few
Indian children are employed. Child labour below the age of 10 is
now rare. In the 10-14 group, the latest surveys find only 2% of
children working for wage, while another 9% work within their home
or rural farms assisting their parents in times of high work demand
such as sowing and harvesting of crops. India has the second largest
diaspora around the world, an estimated 25 million people, many of
whom work overseas and remit funds back to their families. The
Middle East region is the largest source of employment of expat
Indians. The crude oil production and infrastructure industry of
Saudi Arabia employs over 2 million expat Indians. Cities such as
Dubai and Abu Dhabi in United Arab Emirates alone have employed
another 2 million Indian construction workers during its construction
boom in recent decades. In 2009–10, remittances from Indian
45
migrants overseas stood at 2,500 billion (US$37 billion), the highest in

the world, but their share in FDI remained low at around 1%.
Economic trends and issues
With 1.27 billion people and the world’s third-largest

economy in terms of purchasing power, India’s recent growth and
development has been one of the most significant achievements of
our times. Over the six and half decades since independence, the
country has brought about a landmark agricultural revolution that
has transformed the nation from chronic dependence on grain
imports into a global agricultural powerhouse that is now a net
exporter of food. Life expectancy has more than doubled, literacy
rates have quadrupled, health conditions have improved. India will
soon have the largest and youngest workforce the world has ever
seen. At the same time, the country is in the midst of a massive wave
of urbanization as some 10 million people move to towns and cities
each year in search of jobs and opportunity. It is the largest rural-
urban migration of this century. Massive investments will be needed
to create the jobs, housing, and infrastructure to meet soaring
aspirations and make towns and cities more livable and greener. —
World Bank: "India Country Overview 2013"
Agriculture
Agriculture is an important part of Indian economy. At

around 1.53 million square km, India has the second largest amount
of arable land of any country after the U.S.A., with percentage of
cultivated land compared to total land area being close to 52℅, second
highest after Bangladesh (over 68℅) among major labour intensive
agricultural economies. Although the total land area of the country is
only slightly more than one third of China’s or the U.S.A.'s, India’s
arable land is marginally smaller than the U. S’s, and marginally
bigger than china's. In 2008, a New York Times article claimed, with
46
the right technology and policies, India could contribute to feeding

not just itself but the world. However, agricultural output of India
lags far behind its potential. The low productivity in India is a result
of several factors. According to the World Bank, India's large
agricultural subsidies are distorting what farmers grow and they are
hampering productivity-enhancing investment. While
overregulation of agriculture has increased costs, price risks and
uncertainty, governmental intervention in labour, land, and credit
markets are hurting the market. Infrastructure such as rural roads,
electricity, ports, food storage, retail markets and services are
inadequate. Further, the average size of land holdings is very small,
with 70% of holdings being less than one hectare in size. Irrigation
facilities are inadequate, as revealed by the fact that only 46% of the
total cultivable land was irrigated as of 2016, resulting in farmers still
being dependent on rainfall, specifically the monsoon season, which
is often inconsistent and unevenly distributed across the country. To
bring an additional two crore hectares of land under irrigation
through various agriculture schemes including Accelerated Irrigation
Benefit Programme (AIBP)for which a provision of Rs. 80,000 crores
have been sanctioned in the union budget. Farmer incomes are low
also in part because of lack of food storage and distribution
infrastructure. A third of India's agriculture produce is lost from
spoilage.
Corruption
Corruption has been one of the pervasive problems affecting India. A

2005 study by Transparency International (TI) found that more than
half of those surveyed had firsthand experience of paying bribe or
peddling influence to get a job done in a public office in the previous
year. A follow-on 2008 TI study found this rate to be 40 percent. In
2011, Transparency International ranked India at 95th place amongst
183 countries in perceived levels of public sector corruption and in
2014 India saw a reduction in corruption and improved the ranking
47
to 85th place. In 1996, red tape, bureaucracy and the License Raj were
suggested as a cause for the institutionalized corruption and
inefficiency. More recent reports suggest the causes of include
excessive regulations and approval requirements, mandated
spending programs, monopoly of certain goods and service providers
by government-controlled institutions, bureaucracy with
discretionary powers, and lack of transparent laws and processes.
The Right to Information Act (2005) which requires government

officials to furnish information requested by citizens or face punitive
action, computerization of services, and various central and state
government acts that established vigilance commissions, have
considerably reduced corruption and opened up avenues to redress
grievances. In 2011, the Indian government concluded that most
spending fails to reach its intended recipients. A large, cumbersome
and tumor-like bureaucracy sponges up or siphons off spending
budgets. India's absence rates are one of the worst in the world; one
study found that 25% of public sector teachers and 40% of
government owned public sector medical workers could not be found
at the workplace. Similarly, there are many issues facing Indian
scientists, with demands for transparency, a meritocratic system, and
an overhaul of the bureaucratic agencies that oversee science and
technology. The Indian economy has an underground economy,
with a 2006 report alleging that the Swiss Bankers Association
suggested India topped the worldwide list for black money with
almost $1,456 billion stashed in Swiss banks. This amounts to 13 times
the country's total external debt. These allegations have been denied
by Swiss Banking Association. James Nason, the Head of
International Communications for Swiss Banking Association,
suggests "The (black money) figures were rapidly picked up in the
Indian media and in Indian opposition circles, and circulated as
gospel truth. However, this story was a complete fabrication. The
Swiss Bankers Association never published such a report. Anyone
48
claiming to have such figures (for India) should be forced to identify

their source and explain the methodology used to produce them."
Education
India has made huge progress in terms of increasing primary

education attendance rate and expanding literacy to approximately
three-fourths of the population. India's literacy rate had grown from
52.2% in 1991 to 74.04% in 2011. The right to education at elementary
level has been made one of the fundamental rights under the eighty-
sixth Amendment of 2002, and legislation has been enacted to further
the objective of providing free education to all children. However,
the literacy rate of 74% is still lower than the worldwide average and
the country suffers from a high dropout rate. Further, the literacy
rates and educational opportunities vary by region, gender, urban
and rural areas, and among different social groups.
Economic disparities
Poverty rates in India’s poorest states are three to four times higher
than those in the more advanced states. While India’s average annual
per capita income was $1,410 in 2011 – placing it among the poorest
of the world’s middle-income countries – it was just $436 in Uttar
Pradesh (which has more people than Brazil) and only $294 in Bihar,
one of India’s poorest states. — World Bank: India Country Overview
2013. A critical problem facing India's economy is the sharp and
growing regional variations among India's different states and
territories in terms of poverty, availability of infrastructure and socio-
economic development. Six low-income states – Bihar, Chhattisgarh,
Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh – are home
to more than one-third of India's population. Severe disparities exist
among states in terms of income, literacy rates, life expectancy and
living conditions. The five-year plans, especially in the pre-
liberalization era, attempted to reduce regional disparities by
49
encouraging industrial development in the interior regions and

distributing industries across states, but the results have not been
very encouraging since these measures in fact increased inefficiency
and hampered effective industrial growth. After liberalization, the
more advanced states have been better placed to benefit from them,
with well-developed infrastructure and an educated and skilled
workforce, which attract the manufacturing and service sectors. The
governments of backward regions are trying to reduce disparities by
offering tax holidays and cheap land, and focusing more on sectors
like tourism which, although being geographically and historically
determined, can become a source of growth and develops faster than
other sectors. India's income Gini coefficient is 33.9, according to The
World Bank, indicating overall income distribution to be more
uniform than East Asia, Latin America and Africa that have higher
Gini coefficients. There is a continuing debate on whether India's
economic expansion has been pro-poor or anti-poor. Studies suggest
that the economic growth has been pro-poor and has reduced poverty
in India.
Insurance
India became the 10th largest insurance market in the world in 2013,
rising from 15th rank in 2011. At a total market size of US$66.4 billion
in 2013, it remains small compared to world's major economies, and
Indian insurance market accounts for 2% of world's annual insurance
business. India's life and non-life insurance industry has been
growing at 20% double digit growth rates and this growth is expected
to continue through 2021. 'Life insurance Indian economy retains
about 360 million active life insurance policies, the largest in the
world. Of the 52 insurance companies in India, 24 are active in life
insurance business. The life insurance industry in the country is
projected to increase at double digit compounded annual growth
rates through 2019, with targets to reach US$1 trillion annual notional
values by 2021. Other insurance the industry which reported a
50
growth rate of around 10 percent during the period 1996–97 to 2000–

01 has, post opening up the sector, reported average annual growth
of 15.85% over the period 2001–02 to 2010–11. In addition, the
specialized insurers Export Credit Guarantee Corporation and
Agriculture Insurance Company (AIC) are offering credit guarantee
and crop insurance respectively. AIC, which has initially offering
coverage under the National Agriculture Insurance Company
(NAIS), has now started providing crop insurance cover on
commercial line as well. It has introduced several innovative
products such as weather insurance and specific crop related
products. The premium underwritten by the non-life insurers during
2010–11 was Rs 42,576 crore as against Rs 34,620 crore in 2009–10. The
growth was satisfactory, particularly in the view of the across the
broad cuts in the tariff rates. The private insurers underwrote
premium of Rs 17,424 crore as against Rs 13,977 crore in 2009–10. The
public sector insurers on the other hand, underwrote a premium of
Rs 25,151.8 in 2010–11 as against Rs 20,643.5 crore in 2009–10, i.e. a
growth of 21.8% as against 14.5% in 2009–10. Market penetration The
Indian insurance business has in the past remained under developed
with low levels of insurance penetration. Post liberalization sector has
succeeded in raising the levels of insurance penetration from 2.3 (life
1.8 and non-life 0.7) in 2000 to 5.1 (life 4.4 and non-life 0.7) in 2010.
Security markets
The development of Indian security markets began with launch of

Bombay Stock Exchange (BSE), Mumbai in July 1875 and Ahmedabad
Stock exchange in 1894 and 22 other exchange in various cities over
the years. In 2014, India's stock exchange market became the 10th
largest in the world by market capitalization, just above those of
South Korea and Australia. India's two major stock exchanges, BSE
and National Stock Exchange of India, had a market capitalization of
US$1.71 trillion and US$1.68 trillion respectively as of Feb 2015,
according to World Federation of Exchanges. The Initial Public
51
Offering (IPO) market in India has been small compared to NYSE and
NASDAQ, raising US$300 million in 2013 and US$1.4 billion in 2012.
Ernst and Young states that the low IPO activity reflects market
conditions as well as slow government approval process and complex
regulations. Before 2013, Indian companies were not allowed to list
their securities internationally without first completing an IPO in
India. In 2013, these security laws were reformed and Indian
companies can now choose where they want to list first — overseas,
domestically, or concurrently. Further, security laws have been
revised to ease overseas listings of already listed companies, to
increase liquidity for private equity and international investors in
Indian companies.
Standard of living in India
With one of the fastest growing economies in the world, clocked at a

growth rate of 8.3% in 2010, India is fast on its way to becoming a
large and globally important consumer economy. The Indian middle
class was estimated to be 50 million persons (reckoning vehicle
owners only) in 2007, by McKinsey & Company. According to
Deutsche Research the estimates are nearly 300 million people for all
Middle Class. If current trends continue, Indian per capita purchasing
power parity will significantly increase from 4.7 to 6.1 percent of the
world share by 2015. In 2006, 22 percent of Indians lived under the
poverty line. According to NCAER, India's middle-class population
would be 267 million in 2016. Further ahead, by 2025-26 the number
of middle-class households in India is likely to more than double
from the 2015-16 levels to 113.8 million households or 547 million
individuals. Another estimate put the Indian middle class as
numbering 475 million people by 2030. It is estimated that average
real wages will quadruple between 2013 and 2030. The standard of
living in India shows large disparity. For example, there is
widespread poverty in rural areas of India, where medical care tends
to be very basic or unavailable, while cities boast of world class
52
medical establishments. Similarly, the very latest machinery may be

used in some construction projects, but many construction workers
work without mechanization in most projects. However, a rural
middle class is now emerging in India, with some rural areas seeing
increasing prosperity. In general, the southern Indian state of Kerala
ranks top for most of the indices. In 2010, the per capita PPP-adjusted
GDP for India was US$3,608.
Poverty
A 24.3% of the population earned less than US$1 (PPP, around

US$0.25 in nominal terms) a day in 2005, down from 42.1% in 1981.
41.6% of its population is living below the new international poverty
line of $1.25 (PPP) per day, down from 59.8% in 1981. The World Bank
further estimates that a third of the global poor now reside in India.
On the other hand, the Planning Commission of India uses its own
criteria and has estimated that 27.5% of the population was living
below the poverty line in 2004–2005, down from 51.3% in 1977–1978,
and 36% in 1993-1994.[13] The source for this was the 61st round of the
National Sample Survey (NSS) and the criterion used was monthly
per capita consumption expenditure below ₹ 356.35 for rural areas
and ₹ 538.60 for urban areas. 75% of the poor are in rural areas, most
of them are daily wagers, self-employed householders and landless
labourers. Although Indian economy has grown steadily over the last
two decades, its growth has been uneven when comparing different
social groups, economic groups, geographic regions, and rural and
urban areas. Between 1999 and 2008, the annualized growth rates for
Maharashtra (9.1%), Gujarat (8.8%), Haryana (8.7%), or Delhi (7.4%)
were much higher than for Bihar (5.1%), Uttar Pradesh (4.4%), or
Madhya Pradesh (3.5%). Poverty rates in rural Odisha (43%) and
rural Bihar (41%) are higher than in the world's poorest countries
such as Malawi. Since the early 1950s, successive governments have
implemented various schemes, under planning, to alleviate poverty,
that have met with partial success. Programmes like Food for work and
53
National Rural Employment Programme have attempted to use the

unemployed to generate productive assets and build rural
infrastructure. In August 2005, the Indian parliament passed the
Rural Employment Guarantee Bill, the largest programme of this type,
in terms of cost and coverage, which promises 100 days of minimum
wage employment to every rural household in 200 of India's 600
districts. The Indian government is planning to bring in more
economic reforms which can help farmers and unskilled labourers
transition into industrialized sectors.
54
Indian Minimum Wage: Evolution to Contemporary State
Chapter - 4
Indian Minimum Wage: Evolution to

Contemporary State
Introduction and Learning Assistance: This chapter will assist you

in knowing and learning the Indian Minimum wage system and its
evolution to Contemporary States in India Setting, with what is the
modern minimum wage laws trace their origin to the Ordinance of
Labourers (1349). The chapter proceeds to the minimum wage laws
of India and Rest of the world, and also involves in the informal
minimum wages in the Indian Scenario. The next issues discussed in
the chapter is the setting minimum wage, and the economics models
for Wage Fixation with the consequences of Minimum Wage Laws,
and with that advances to the very important learning experience of
knowing about the ILO and its Contribution to successful
implementation of the minimum wage across the world and India
and the areas that are still under debate as the wage labour as well as
wage slavery in India.
A minimum wage is the lowest remuneration that employers may

legally pay to workers. Equivalently, it is the price floor below which
workers may not sell their labor. Although minimum wage laws are
in effect in many jurisdictions, differences of opinion exist about the
benefits and drawbacks of a minimum wage. Supporters of the
minimum wage say it increases the standard of living of workers,
reduces poverty, reduces inequality, boosts morale and forces
businesses to be more efficient. In contrast, opponents of the
55
minimum wage say it increases poverty, increases unemployment

(particularly among unskilled or inexperienced workers) and is
damaging to businesses, because excessively high minimum wages
require businesses to raise the prices of their product or service to
accommodate the extra expense of paying a higher wage.
Modern minimum wage laws trace their origin to the

Ordinance of Labourers (1349), which was a decree by King Edward
III that set a maximum wage for laborers in medieval England. King
Edward III, who was a wealthy landowner, was dependent, like his
lords, on serfs to work the land. In the autumn of 1348, the Black
Plague reached England and decimated the population. The severe
shortage of labor caused wages to soar and encouraged King Edward
III to set a wage ceiling. Subsequent amendments to the ordinance,
such as the Statute of Labourers (1351), increased the penalties for
paying a wage above the set rates. While the laws governing wages
initially set a ceiling on compensation, they were eventually used to
set a living wage. An amendment to the Statute of Labourers in 1389
effectively fixed wages to the price of food. As time passed, the Justice
of the Peace, who was charged with setting the maximum wage, also
began to set formal minimum wages. The practice was eventually
formalized with the passage of the Act Fixing a Minimum Wage in
1604 by King James I for workers in the textile industry. By the early
19th century, the Statutes of Labourers was repealed as increasingly
capitalistic England embraced laissez-faire policies which disfavored
regulations of wages (whether upper or lower limits). The subsequent
19th century saw significant labor unrest affect many industrial
nations. As trade unions were decriminalized during the century,
attempts to control wages through collective agreement were made.
However, this meant that a uniform minimum wage was not possible.
In Principles of Political Economy in 1848, John Stuart Mill argued that
because of the collective action problems that workers faced in
organization, it was a justified departure from laissez-faire policies (or
freedom of contract) to regulate people's wages and hours by law. It
56
was not until the 1890s that the first modern legislative attempts to
regulate minimum wages were seen in New Zealand and Australia.
The movement for a minimum wage was initially focused on
stopping sweatshop labor and controlling the proliferation of
sweatshops in manufacturing industries. The sweatshops employed
large numbers of women and young workers, paying them what
were considered to be substandard wages. The sweatshop owners
were thought to have unfair bargaining power over their employees,
and a minimum wage was proposed as a means to make them pay
fairly. Over time, the focus changed to helping people, especially
families, become more self-sufficient.
Minimum wage laws: India and Rest of the world
For a complete list of global wages see: List of minimum

wages by country. Wages are given in US$ exchange rates. The first
national minimum wage law was enacted by the government of New
Zealand in 1894, followed by Australia in 1896 and the United
Kingdom in 1909. In the United States, statutory minimum wages
were first introduced nationally in 1938, and they were reintroduced
57
and expanded in the United Kingdom in 1998. There is now

legislation or binding collective bargaining regarding minimum
wage in more than 90 percent of all countries. In the European Union,
22 member states out of 28 currently have national minimum wages.
Other countries, such as Sweden, Finland, Denmark, Switzerland,
Austria, and Italy, have no minimum wage laws, but rely on
employer groups and trade unions to set minimum earnings through
collective bargaining. Minimum wage rates vary greatly across many
different jurisdictions, not only in setting a particular amount of
money—for example $7.25 per hour ($14,500 per year) under certain
US state laws (or $2.13 for employees who receive tips, which is
known as the tipped minimum wage), $9.47 in the US state of
Washington, or £6.50 (for those aged 21+) in the United Kingdom but
also in terms of which pay period (for example Russia and China set
monthly minimum wages) or the scope of coverage. Some
jurisdictions allow employers to count tips given to their workers as
credit towards the minimum wage levels. India was one of the first
developing countries to introduce minimum wage policy. It also has
one of the most complicated systems with more than 1200 minimum
wage rates.
Informal minimum wages: Indian Scenario
Customs and extra-legal pressures from governments or labor unions

can produce a de facto minimum wage. So can international public
opinion, by pressuring multinational companies to pay Third World
workers’ wages usually found in more industrialized countries. The
latter situation in Southeast Asia and Latin America was publicized
in the 2000s, but it existed with companies in West Africa in the
middle of the twentieth century.
58
Setting minimum wage
Among the indicators that might be used to establish an initial

minimum wage rate are ones that minimize the loss of jobs while
preserving international competitiveness. Among these are general
economic conditions as measured by real and nominal gross domestic
product; inflation; labor supply and demand; wage levels,
distribution and differentials; employment terms; productivity
growth; labor costs; business operating costs; the number and trend
of bankruptcies; economic freedom rankings; standards of living and
the prevailing average wage rate. In the business sector, concerns
include the expected increased cost of doing business, threats to
profitability, rising levels of unemployment (and subsequent higher
government expenditure on welfare benefits raising tax rates), and
the possible knock-on effects to the wages of more experienced
workers who might already be earning the new statutory minimum
wage, or slightly more. Among workers and their representatives,
political consideration weighs in as labor leaders seek to win support
by demanding the highest possible rate. Other concerns include
purchasing power, inflation indexing and standardized working
hours. In the United States, the minimum wage promulgated by the
Fair Labor Standards Act of 1938 was intentionally set at a high,
national level to render low-technology, low-wage factories in the
South obsolete. According to the Economic Policy Institute, the
minimum wage in the United States would have been $18.28 in 2013
if the minimum wage had kept pace with labor productivity. To
adjust for increased rates of worker productivity in the United States,
raising the minimum wage to $22 (or more) an hour has been
presented.
Economics models for Wage Fixation:
Supply and demand: An imposition or increase of a minimum wage

will generally only affect employment in the low-skill labor market,
59
as the equilibrium wage is already at or below the minimum wage,

whereas in higher skill labor markets the equilibrium wage is too high
for a change in minimum wage to affect employment. According to
the supply and demand model shown in many textbooks on
economics, increasing the minimum wage decreases the employment
of minimum-wage workers.
Consequences of Minimum Wage Laws:
Minimum wage laws affect workers in most low-paid fields of

employment and have usually been judged against the criterion of
reducing poverty. Minimum wage laws receive less support from
economists than from the general public. Despite decades of
experience and economic research, debates about the costs and
benefits of minimum wages continue today. Various groups have
great ideological, political, financial, and emotional investments in
issues surrounding minimum wage laws. For example, agencies that
administer the laws have a vested interest in showing that "their" laws
do not create unemployment, as do labor unions whose members'
finances are protected by minimum wage laws. On the other side of
the issue, low-wage employers such as restaurants finance the
Employment Policies Institute, which has released numerous studies
opposing the minimum wage. The presence of these powerful groups
and factors means that the debate on the issue is not always based on
dispassionate analysis. Additionally, it is extraordinarily difficult to
separate the effects of minimum wage from all the other variables that
affect employment.
The following table summarizes the arguments made by those for •

and against minimum wage laws: Arguments in favor of minimum
wage laws, supporters of the minimum wage claim it has these
effects:
60
• Removes financial stress and encourages education,

resulting in better paying jobs.
• Positive impact on small business owners and industry.
Increased job growth/creation. Increases the standard of
living for the poorest and most vulnerable class in society
and raises average. Increases incentives to take jobs, as
opposed to other methods of transferring income to the poor
that are not tied to employment (such as food subsidies for
the poor or welfare payments for the unemployed).
Stimulates consumption, by putting more money in the
hands of low-income people who spend their entire
paychecks. Hence increases circulation of money through
the economy. Encourages efficiency and automation of
industry.
• Removes low paying jobs, forcing workers to train for, and
move to, higher paying jobs. Increases technological
development. Costly technology that increases business
efficiency is more appealing as the price of labor increases.
Increases the work ethic of those who earn very little, as
employers demand more return from the higher cost of
hiring these employees.
• Decreases the cost of government social welfare programs
by increasing incomes for the lowest-paid. Encourages
people to join the workforce rather than pursuing money
through illegal means, e.g., selling illegal drugs
Arguments against minimum wage laws:
Opponents of the minimum wage claim it has these effects:
• Minimum wage alone is not effective at alleviating poverty,

and in fact produces a net increase in poverty due to
disemployment effects.
61
• As a labor market analogue of political-economic

protectionism, it excludes low cost competitors from labor
markets and hampers firms in reducing wage costs during
trade downturns. This generates various industrial-
economic inefficiencies.
• Hurts small business more than large business.
• Reduces quantity demanded of workers, either through a
reduction in the number of hours worked by individuals, or
through a reduction in the number of jobs.
• May cause price inflation as businesses try to compensate
by raising the prices of the goods being sold.
• Benefits some workers at the expense of the poorest and
least productive.
• Can result in the exclusion of certain groups (ethnic, gender
etc.) from the labor force.
• Small firms with limited payroll budgets cannot offer their
most valuable employees fair and attractive wages above
unskilled workers paid the artificially high minimum, and
see a rising hurdle-cost of adding workers. Is less effective
than other methods (e.g. the Earned Income Tax Credit) at
reducing poverty, and is more damaging to businesses than
those other methods. Discourages further education among
the poor by enticing people to enter the job market.
Discriminates against, through pricing out, less qualified
workers (including newcomers to the labor market, e.g.
young workers) by keeping them from accumulating work
experience and qualifications, hence potentially graduating
to higher wages later. Slows growth in the creation of low-
skilled jobs Results in jobs moving to other areas or countries
which allow lower-cost labor.
• Results in higher long-term unemployment. Results in
higher prices for consumers, where products and services
are produced by minimum-wage workers (though non-
62
labor costs represent a greater proportion of costs to

consumers in industries like fast food and discount retail)
A widely circulated argument that the minimum wage was

ineffective at reducing poverty was provided by George Stigler in
1949:
• Employment may fall more than in proportion to the wage

increase, thereby reducing overall earnings;
• As uncovered sectors of the economy absorb workers released
from the covered sectors, the decrease in wages in the
uncovered sectors may exceed the increase in wages in the
covered ones;
• The impact of the minimum wage on family income
distribution may be negative unless the fewer but better jobs
are allocated to members of needy families rather than to, for
example, teenagers from families not in poverty;
• Forbidding employers to pay less than a legal minimum is
equivalent to forbidding workers to sell their labor for less
than the minimum wage. The legal restriction that employers
cannot pay less than a legislated wage is equivalent to the
legal restriction that workers cannot work at all in the
protected sector unless they can find employers willing to hire
them at that wage.
ILO and Its Contribution to Minimum Wage:
In 2006, the International Labour Organization (ILO) argued that the

minimum wage could not be directly linked to unemployment in
countries that have suffered job losses. In April 2010, the
Organization for Economic Co-operation and Development (OECD)
released a report arguing that countries could alleviate teen
unemployment by "lowering the cost of employing low-skilled
youth" through a sub-minimum training wage. A study of U.S. states
63
showed that businesses' annual and average payrolls grow faster and
employment grew at a faster rate in states with a minimum wage.
The study showed a correlation, but did not claim to prove causation.
Although strongly opposed by both the business community and the
Conservative Party when introduced in 1999, the Conservatives
reversed their opposition in 2000. Accounts differ as to the effects of
the minimum wage. The Centre for Economic Performance found no
discernible impact on employment levels from the wage increases,
while the Low Pay Commission found that employers had reduced
their rate of hiring and employee hours employed, and found ways
to cause current workers to be more productive (especially service
companies). The Institute for the Study of Labor found prices in the
minimum wage sector rose significantly faster than prices in non-
minimum wage sectors, in the four years following the
implementation of the minimum wage. Neither trade unions nor
employer organizations contest the minimum wage, although the
latter had especially done so heavily until 1999. In 2014, supporters
of minimum wage cited a study that found that job creation within
the United States is faster in states that raised their minimum wages.
In 2014, supporters of minimum wage cited news organizations who
reported the state with the highest minimum-wage garnered more job
creation than the rest of the United States. In 2014, in Seattle,
Washington, liberal and progressive business owners who had
supported the city's new $15 minimum wage said they might hold off
on expanding their businesses and thus creating new jobs, due to the
uncertain timescale of the wage increase implementation. However,
subsequently at least two of the business owners quoted did expand.
The dollar value of the minimum wage loses purchasing power over
time due to inflation. Minimum wage laws, for instance proposals to
index the minimum wage to average wages, have the potential to
keep the dollar value of the minimum wage relevant and predictable.
With regard to the economic effects of introducing minimum wage
legislation in Germany in January 2015, recent developments have
shown that the feared increase in unemployment has not
64
materialized, however, in some economic sectors and regions of the

country, it came to a decline in job opportunities particularly for
temporary and part-time workers, and some low-wage jobs have
disappeared entirely. Because of this overall positive development,
the Deutsche Bundesbank revised its opinion, and ascertained that
“the impact of the introduction of the minimum wage on the total
volume of work appears to be very limited in the present business
cycle”.
Wage labour
Wage labour (also wage labor in American English) is the

socioeconomic relationship between a worker and an employer,
where the worker sells their labour under a formal or informal
employment contract. These transactions usually occur in a labour
market where wages are market determined. In exchange for the
wages paid, the work product generally becomes the undifferentiated
property of the employer, except for special cases such as the vesting
of intellectual property patents in the United States where patent
rights are usually vested in the employee personally responsible for
the invention. A wage labourer is a person whose primary means of
income is from the selling of his or her labour in this way.
In modern mixed economies such as those of the OECD countries, it

is currently the most common form of work arrangement. Although
most labour is organized as per this structure, the wage work
arrangements of CEOs, professional employees, and professional
contract workers are sometimes conflated with class assignments, so
that "wage labour" is considered to apply only to unskilled, semi-
skilled or manual labour.
Types of wage labour and its classifications:
The most common form of wage labour currently is ordinary direct,

or "full-time", employment in which a free worker sells his or her
65
labour for an indeterminate time (from a few years to the entire career
of the worker), in return for a money-wage or salary and a continuing
relationship with the employer which it does not in general offer
contractors or other irregular staff. However, wage labour takes
many other forms, and explicit as opposed to implicit (i.e.
conditioned by local labour and tax law) contracts are not uncommon.
Economic history shows a great variety of ways in which labour is
traded and exchanged. The differences show up in the form of:
• Employment status – a worker could be employed full-time,

part-time, or on a casual basis. He or she could be employed
for example temporarily for a specific project only, or on a
permanent basis. Part-time wage labour could combine with
part-time self-employment. The worker could be employed
also as an apprentice.
• Civil (legal) status – the worker could for example be a free
citizen, an indentured labourer, the subject of forced labour
(including some prison or army labour); a worker could be
assigned by the political authorities to a task, they could be a
semi-slave or a serf bound to the land who is hired out part of
the time. So, the labour might be performed on a more or less
voluntary basis, or on a more or less involuntary basis, in
which there are many gradations.
• Method of payment (remuneration or compensation) – The
work done could be paid "in cash" (a money-wage) or "in
kind" (through receiving goods and/or services), or in the
form of "piece rates" where the wage is directly dependent on
how much the worker produces. In some cases, the worker
might be paid in the form of credit used to buy goods and
services, or in the form of stock options or shares in an
enterprise.
• Method of hiring – the worker might engage in a labour-
contract on his or her own initiative, or he or she might hire
out their labour as part of a group. But he or she may also hire
66
out their labour via an intermediary (such as an employment

agency) to a third party. In this case, he or she is paid by the
intermediary, but works for a third party which pays the
intermediary. In some cases, labour is subcontracted several
times, with several intermediaries. Another possibility is that
the worker is assigned or posted to a job by a political
authority, or that an agency hires out a worker to an enterprise
together with means of production.
Most opponents of the institution support worker self-management

and economic democracy as alternatives to both wage labour and to
capitalism. While most opponents of wage labour blame the capitalist
owners of the means of production for its existence, most anarchists
and other libertarian socialists also hold the state as equally
responsible as it exists as a tool utilized by capitalists to subsidize
themselves and protect the institution of private ownership of the
means of production—which guarantees the concentration of capital
among a wealthy elite leaving the majority of the population without
access. As some opponents of wage labour take influence from
Marxist propositions, many are opposed to private property, but
maintain respect for personal property. A point of criticism is that
after people have been compelled by economic necessity to no
feasible alternative than that of wage labour, exploitation occurs; thus
the claim that wage labour is "voluntary" on the part of the labourer
is considered a red herring as the relationship is only entered into due
to systemic coercion brought about by the inequality of bargaining
power between labour and capital as classes.
Wage Slavery
Wage labour has long been compared to slavery by socialists. As a

result, the term 'wage slavery' is often utilized as a pejorative for wage
labour. Similarly, advocates of slavery looked upon the "comparative
evils of Slave Society and of Free Society, of slavery to human Masters
67
and slavery to Capital," and proceeded to argue persuasively that

wage slavery was actually worse than chattel slavery. Slavery
apologists like George Fitzhugh contended that workers only
accepted wage labour with the passage of time, as they became
"familiarized and inattentive to the infected social atmosphere they
continually inhale."
According to Noam Chomsky, analysis of the psychological

implications of wage slavery goes back to the Enlightenment era. In
his 1791 book On the Limits of State Action, classical liberal thinker
Wilhelm von Humboldt explained how "whatever does not spring
from a man's free choice, or is only the result of instruction and
guidance, does not enter into his very nature; he does not perform it
with truly human energies, but merely with mechanical exactness"
and so when the labourer works under external control, "we may
admire what he does, but we despise what he is." Both the Milgram
and Stanford experiments have been found useful in the
psychological study of wage-based workplace relations.
Additionally, as per anthropologist David Graeber, the earliest wage
labour contracts we know about were in fact contracts for the rental
of chattel slaves (usually the owner would receive a share of the
money, and the slave, another, with which to maintain his or her
living expenses.) Such arrangements, according to Graeber, were
quite common in New World slavery as well, whether in the United
States or Brazil. C. L. R. James argued in The Black Jacobins that most
of the techniques of human organization employed on factory
workers during the industrial revolution were first developed on
slave plantations. For Marxists, labour-as-commodity, which is how
they regard wage labour, provides a fundamental point of attack
against capitalism. "It can be persuasively argued," noted one
concerned philosopher, "that the conception of the worker's labour as
a commodity confirms Marx's stigmatization of the wage system of
private capitalism as 'wage-slavery;' that is, as an instrument of the
capitalist's for reducing the worker's condition to that of a slave, if not
68
below it." That this objection is fundamental follows immediately

from Marx's conclusion that wage labour is the very foundation of
capitalism: "Without a class dependent on wages, the moment
individuals confront each other as free persons, there can be no
production of surplus value; without the production of surplus-value
there can be no capitalist production, and hence no capital and no
capitalist!"
69
Indian Labour Law and Acts: Evolution, Growth and Applications
Chapter - 5
Indian Labour Law and Acts: Evolution,

Growth and Applications

the practical issues and applications that evolved from the past to the
present in the Indian Labour Law and Acts, its growth in the
Evolution, Growth and Applications. The lesson will proceed to the
Indian Labour Law and its developments across India in the pre- and
post-independence of the Indian Labour Law, with special reference
to the factories act 1948. The Factories Act 1948 with its contents will
add its contributions to the India contract acts and rights, and the
kinds of contracts like the employment contracts. The next level of
proceedings will be to the wage regulations and its related
legislations with the focus on labour issues pertaining to the health
and safety with special references to the pensions and insurance.
Indian Labour Law
Indian labour law refers to laws regulating labour in India.

Traditionally, Indian governments at federal and state level have
sought to ensure a high degree of protection for workers, but in
practice, legislative rights only cover a minority of workers. India is a
federal form of government and because labour is a subject in the
concurrent list of the Indian Constitution, labour matters are in the
jurisdiction of both central and state governments; both central and
state governments have enacted laws on labour relations and
employment issues. In the Constitution of India from 1950, articles
70
14-16, 19(1)(c), 23-24, 38, and 41-43A directly concern labour rights.
Article 14 states everyone should be equal before the law, article 15
specifically says the state should not discriminate against citizens,
and article 16 extends a right of "equality of opportunity" for
employment or appointment under the state. Article 19(1)(c) gives
everyone a specific right "to form associations or unions". Article 23
prohibits all trafficking and forced labour, while article 24 prohibits
child labour under 14 years old in a factory, mine or "any other
hazardous employment".
Articles 38-39, and 41-43A, however, like all rights listed in Part IV of
the Constitution are not enforceable by courts, rather than creating an
aspirational "duty of the State to apply these principles in making
laws”. The original justification for leaving such principles
unenforceable by the courts was that democratically accountable
institutions ought to be left with discretion, given the demands they
could create on the state for funding from general taxation, although
such views have since become controversial. Article 38(1) says that in
general the state should "strive to promote the welfare of the people"
with a "social order in which justice, social, economic and political,
shall inform all the institutions of national life. In article 38(2) it goes
on to say the state should "minimize the inequalities in income" and
based on all other statuses. Article 41 creates a "right to work", which
the National Rural Employment Guarantee Act 2005 attempts to put
into practice. Article 42 requires the state to "make provision for
securing just and human conditions of work and for maternity relief".
Article 43 says workers should have the right to a living wage and
"conditions of work ensuring a decent standard of life". Article 43A,
inserted by the Forty-second Amendment of the Constitution of India
in 1976, creates a constitutional right to codetermination by requiring
the state to legislate to "secure the participation of workers in the
management of undertakings".
71
Factories Act 1948
The Factories Act 1948 was an Act of Parliament passed in the United
Kingdom by the Labour government of Clement Attlee. It was passed
with the intention of safeguarding the health of workers. It extended
the age limits for the medical examination of persons entering factory
employment, while also including male workers in the regulations for
providing seats and issuing extensive new building regulations.
Under the legislation, young persons under the age of eighteen
became subject to medical examination not only on entry to the place
of work, but annually thereafter. Certificates of fitness were also
made a requirement for young people employed in the loading,
unloading and coaling of ships and other kinds of work in ships on
harbour or wet dock, engineering construction and building
operations as well as for factory employees.
Contract and Rights
Indian labour law makes a distinction between people who work in

"organized" sectors and people working in "unorganized sectors.
The laws list the different industrial sectors to which various labour
rights apply. People who do not fall within these sectors, the ordinary
law of contract applies. India's labour laws underwent a major
update in the Industrial Disputes Act of 1947. Since then, an
additional 45 national laws expand or intersect with the 1948 act, and
another 200 state laws control the relationships between the worker
and the company. These laws mandate all aspects of employer-
employee interaction, such as companies must keep 6 attendance
logs, 10 different accounts for overtime wages, and file 5 types of
annual returns. The scope of labour laws extend from regulating the
height of urinals in workers' washrooms to how often a work space
must be lime-washed. Inspectors can examine workspace anytime
and declare fines for violation of any labour laws and regulations.
72
Employment Contracts
Among the employment contracts that are regulated in India, the

regulation involves significant government involvement which is
rare in developed countries. The Industrial Employment (Standing
Orders) Act 1946 requires that employers have terms including
working hours, leave, productivity goals, dismissal procedures or
worker classifications, approved by a government body. The Contract
Labour (Regulation and Abolition) Act 1970 aims at regulating
employment of contract labour so as to place it at par with labour
employed directly. Women are now permitted to work night shifts
too (10 pm to 6 am). The Latin phrase 'dies non' is being widely used
by disciplinary authorities in government and industries for denoting
the 'unauthorized absence' to the delinquent employees. According
to Shri R. P. Saxena, chief engineer, Indian Railways, dies-non is a
period which neither counted in service nor considered as break in
service. A person can be marked dies-non, if
• absent without proper permission

• when on duty left without proper permission
• while in office but refused to perform duties
In cases of such willful and unauthorized absence from work, the

leave sanctioning authority may decide and order that the days on
which the work is not performed be treated as dies non-on the
principle of no work no pay. This will be without prejudice to any
other action that the competent authority might take against the
persons resorting to such practices. The principle of "no work no pay"
is widely being used in the banking industry in India. All other
manufacturing industries and large service establishments like
railways, posts and telecommunications are also implementing it to
minimize the incidences of unauthorized absence of workers. The
term 'industry' infuses a contractual relationship between the
employer and the employee for sale of products and services which
73
are produced through their cooperative endeavor. This contract

together with the need to put in efforts in producing goods and
services imposes duties (including ancillary duties) and obligations
on the part of the employees to render services with the tools
provided and, in a place, and time fixed by the employer. And in
return, as a quid pro quo, the employer is enjoined to pay wages for
work done and or for fulfilling the contract of employment. Duties
generally, including ancillary duties, additional duties, normal
duties, emergency duties, which have to be done by the employees
and payment of wages therefor. Where the contract of employment is
not fulfilled or work is not done as prescribed, the principle of 'no
work no pays' is brought into play.
Wage Regulation
The Payment of Wages Act 1936 requires that employees receive

wages, on time, and without any unauthorized deductions. Section 6
requires that people are paid in money rather than in kind. The law
also provides the tax withholdings the employer must deduct and
pay to the central or state government before distributing the wages.
The Minimum Wages Act 1948 sets wages for the different economic
sectors that it states it will cover. It leaves a large number of workers
unregulated. Central and state governments have discretion to set
wages according to kind of work and location, and they range
between as much as 143 to 1120 per day for work in the so-called
central sphere. State governments have their own minimum wage
schedules. The Payment of Gratuity Act 1972 applies to
establishments with 10 or more workers. Gratuity is payable to the
employee if he or she resigns or retires. The Indian government
mandates that this payment be at the rate of 15 days’ salary of the
employee for each completed year of service subject to a maximum of
1000000. The Payment of Bonus Act 1965, which applies only to
enterprises with over 20 people, requires bonuses are paid out of
74
profits based on productivity. The minimum bonus is currently 8.33

per cent of salary.
Weekly Holidays Act 1942 Beedi and Cigar Workers Act 1967
Health and safety
The Workmen's Compensation Act 1923 requires that compensation

is paid if workers are injured in the course of employment for injuries,
or benefits to dependants. The rates are low. Factories Act 1948,
consolidated existing factory safety laws
• The Sexual Harassment of Women at Workplace

(Prevention, Prohibition and Redressal) Act, 2013 that seeks
to protect and provides a mechanism for women to report
incidents of sexual harassment at their place of work.
Pensions and insurance
The Employees' Provident Fund and Miscellaneous Provisions Act

1952 created the Employees' Provident Fund Organization of India.
This functions as a pension fund for old age security for the organized
workforce sector. For those workers, it creates Provident Fund to
which employees and employers contribute equally, and the
minimum contributions are 10-12 per cent of wages. On retirement,
employees may draw their pension. Indira Gandhi National Old Age
Pension Scheme
• National Pension Scheme

• Public Provident Fund (India)
The Employees' State Insurance provides health and social security

insurance. This was created by the Employees' State Insurance Act
1948. The Unorganized Workers' Social Security Act 2008 was passed
to extend the coverage of life and disability benefits, health and
75
maternity benefits, and old age protection for unorganized workers.

"Unorganized" is defined as home-based workers, self-employed
workers or daily-wage workers. The central government was meant
to formulate the welfare system through rules produced by the
National Social Security Board.
The Maternity Benefit Act 1961, creates rights to payments of

maternity benefits for any woman employee who worked in any
establishment for a period of at least 80 days during the 12 months
immediately preceding the date of her expected delivery.
The Employees’ Provident Funds and Miscellaneous Provisions

Act, 1952, provides for compulsory contributory fund for the future
of an employee after his/her retirement or for his/her dependents in
case of employee's early death. It extends to the whole of India except
the State of Jammu and Kashmir and is applicable to:
• Every factory engaged in any industry specified in Schedule 1

in which 20 or more persons are employed.
• Every other establishment employing 20 or more persons or
class of such establishments that the Central Govt. may notify.
• Any other establishment so notified by the Central
Government even if employing less than 20 persons.
76
Workplace Participation and Its Components
Chapter - 6
Introduction and Learning Assistance: This chapter will highlight

its discussion about the workplace participation and Its Components,
the formation of the Trade unions across the world and the
contemporary changes that happened in Indian union formation and
the classification of the unions. The chapter proceeds to the next
levels in the formation of unions in India and the management
participation, and the collective action, with the Provisions of the
Factories Act 1948, and post that, the developments in the formation,
and functioning of Unions in India.
Trade unions
Article 19(1)(c) of the Constitution of India gives everyone an

enforceable right "to form associations or unions". The Trade Unions
Act 1926, amended in 2001, contains rules on governance and general
rights of trade unions.
Management participation
It was the view of many in the Indian Independence Movement,

including Mahatma Gandhi, that workers had as much of a right to
participate in management of firms as shareholders or other property
owners. Article 43A of the Constitution, inserted by the Forty-second
Amendment of the Constitution of India in 1976, created a right to
codetermination by requiring the state to legislate to "secure the
77
participation of workers in the management of undertakings".

However, like other rights in Part IV, this article is not directly
enforceable but instead creates a duty upon state organs to implement
its principles through legislation (and potentially through court
cases). In 1978 the Sachar Report recommended legislation for
inclusion of workers on boards, however this had not yet been
implemented. The Industrial Disputes Act 1947 section 3 created a
right of participation in joint work councils to "provide measures for
securing amity and good relations between the employer and
workmen and, to that end to comment upon matters of their common
interest or concern and endeavour to compose any material difference
of opinion in respect of such matters". However, trade unions had not
taken up these options on a large scale. In National Textile Workers
Union v Ramakrishnan the Supreme Court, Bhagwati J giving the
leading judgment, held that employees had a right to be heard in a
winding up petition of a company because their interests were
directly affected and their standing was not excluded by the wording
of the Companies Act 1956 section 398.
Collective action
The Industrial Disputes Act 1947 regulates how employers may

address industrial disputes such as lockouts, layoffs, retrenchment
etc. It controls the lawful processes for reconciliation, adjudication of
labour disputes. According to fundamental rules (FR 17A) of the civil
service of India, a period of unauthorized absence- (i) in the case of
employees working in industrial establishments, during a strike
which has been declared illegal under the provisions of the Industrial
Disputes Act, 1947, or any other law for the time being in force; (ii) in
the case of other employees as a result of action in combination or in
concerted manner, such as during a strike, without any authority
from, or valid reason to the satisfaction of the competent authority;
shall be deemed to cause an interruption or break in the service of the
employee, unless otherwise decided by the competent authority for
78
the purpose of leave travel concession, quasi-permanency and

eligibility for appearing in departmental examinations, for which a
minimum period of continuous service is required.
Provisions of the Factories Act 1948
Equality
Article 14 states everyone should be equal before the law, article 15

specifically says the state should not discriminate against citizens,
and article 16 extends a right of "equality of opportunity" for
employment or appointment under the state. Article 23 prohibits all
trafficking and forced labour, while article 24 prohibits child labour
under 14 years old in a factory, mine or "any other hazardous
employment".
Sex discrimination
Article 39(d) of the Constitution provides that men and women

should receive equal pay for equal work. In the Equal Remuneration
Act 1976 implemented this principle in legislation.
Migrant workers
Interstate Migrant Workmen Act 1979
Vulnerable groups
Bonded Labour System (Abolition) Act 1976, abolishes bonded

labour, but estimates suggest that between 2 million and 5 million
workers still remain in debt bondage in India.
79
Domestic workers in India
Child labour in India is prohibited by the Constitution, article 24, in

factories, mines and hazardous employment, and that under article
21 the state should provide free and compulsory education up to a
child is aged 14. However, in practice, the laws are not enforced.
Dismissal regulation
Some of India's most controversial labour laws concern the

procedures for dismissal contained in the Industrial Disputes Act
1947. A workmen who has been employed for over a year can only be
dismissed if permission is sought from and granted by the
appropriate government office.[27] Additionally, before dismissal,
valid reasons must be given, and there is a wait of at least two months
for government permission, before a lawful termination can take
effect. Redundancy pay must be given, set at 15 days' average pay for
each complete year of continuous service. An employee who has
worked for 4 years in addition to various notices and due process,
must be paid a minimum of the employee's wage equivalent to 60
days before retrenchment, if the government grants the employer a
permission to lay off. A permanent worker can be terminated only for
proven misconduct or for habitual absence. The Industrial Disputes
Act (1947) requires companies employing more than 100 workers to
seek government approval before they can fire employees or close
down. In practice, permissions for firing employees are seldom
granted. Indian laws require a company to get permission for
dismissing workers with plant closing, even if it is necessary for
economic reasons. The government may grant or deny permission for
closing, even if the company is losing money on the operation. The
dismissed worker has a right to appeal, even if the government has
granted the dismissal application. Indian labour regulations provide
for a number of appeal and adjudicating authorities – conciliation
officers, conciliation boards, courts of inquiry, labour courts,
80
industrial tribunals and the national industrial tribunal – under the

Industrial Disputes Act. These involve complex procedures. Beyond
these labour appeal and adjucating procedures, the case can proceed
to respective State High Court or finally the Supreme Court of India.
Unemployment
The Industries (Regulation and Development) Act 1951 declared that

manufacturing industries under its First Schedule were under
common central government regulations in addition to whatever
laws state government enact. It reserved over 600 products that can
only be manufactured in small-scale enterprises, thereby regulating
who can enter in these businesses, and above all placing a limit on the
number of employees per company for the listed products. The list
included all key technology and industrial products in the early
1950s, including products ranging from certain iron and steel
products, fuel derivatives, motors, certain machinery, machine tools,
to ceramics and scientific equipment.
81
The Payment of Wages Act, 1936
Chapter - 7
Introduction and Learning Assistance: This chapter focus on the

Payment of Wages Act, 1936, and proceeds to the Object of the Act its
applications, and proceed to the explanation and references to the
responsibility for payment of wages [Section 3], Fixation of wage
according to periods. [Section 4], the time of Payment: of Wages.
[Section 5], as well as the deductions which may be made from wages,
the duties and responsibilities of the Inspectors, as well as the claims
arising out of deductions from wages, with the powers of authorities
appointed [Section 18]. It also briefs on the Appeal [Section 17], and
explains on the various kinds of Penalty for offences under the act
[Section 20] and its related (2005 amendments), and explains the
Payment of Undisbursed Wages in case of death of employed person
[Sec 25A].
Object of the Act; Applications
The Payment of Wages Act regulates the payment of wages to certain

classes of persons employed in industry and its importance cannot be
under-estimated. The Act guarantees payment of wages on time and
without any deductions except those authorised under the Act. The
Act provides for the responsibility for payment of wages, fixation of
wage period, time and mode of payment of wages, permissible
deduction as also casts upon the employer a duty to seek the approval
of the Government for the acts and permission for which fines may
be imposed by him and also sealing of the fines, and also for a
machinery to hear and decide complaints regarding the deduction
from wages or in delay in payment of wages, penalty for malicious
82
and vexatious claims. The Act does not apply to persons whose wage
is Rs. 10,000 or more per month. The Act also provides to the effect
that a worker cannot contract out of any right conferred upon him
under the Act.
Definitions;
“employed person” [sec 2 (i)] includes the legal representative of a

deceased employed person; “employer”[sec 2 (ia)] includes the legal
representative of a deceased employer;
“industrial or other establishment”[sec 2 (i1)] means any – (a)
tramway service or motor transport service engaged in carrying
passengers or goods or both by road for hire or reward; (aa) air
transport service other than such service belonging to or exclusively
employed in the military naval or air forces of the Union or the Civil
Aviation Department of the Government of India; (g) establishment
in which any work relating to the construction development or
maintenance of buildings roads bridges or canals or relating to
operations connected with navigation irrigation or to the supply of
water or relating to the generation transmission and distribution of
electricity or any other form of power is being carried on; (h) any
other establishment or class of establishments which the Central
Government or a State Government may having regard to the nature
thereof the need for protection of persons employed therein and other
relevant circumstances specify by notification in the Official Gazette.
“Wages”
[sec 2 (iv)] means all remuneration (whether by way of salary

allowances or otherwise) expressed in terms of money or capable of
being so expressed which would if the terms of employment express
or implied were fulfilled by payable to a person employed in respect
of his employment or of work done in such employment and includes
83
– (a) any remuneration payable under any award or settlement

between the parties or order of a court; (b) any remuneration to
which the person employed is entitled in respect of overtime work or
holidays or any leave period; (c) any additional remuneration
payable under the terms of employment (whether called a bonus or
by any other name); (d) any sum which by reason of the termination
of employment of the person employed is payable under any law
contract or instrument which provides for the payment of such sum
whether with or without deductions but does not provide for the time
within which the payment is to be made; (e) any sum to which the
person employed is entitled under any scheme framed under any law
for the time being in force, but does not include – (1) any bonus
(whether under a scheme of profit sharing or otherwise) which does
not form part of the remuneration payable under the terms of
employment or which is not payable under any award or settlement
between the parties or order of a court; (2) the value of any house-
accommodation or of the supply of light water medical attendance or
other amenity or of any service excluded from the computation of
wages by a general or special order of the State Government; (3) any
contribution paid by the employer to any pension or provident fund
and the interest which may have accrued thereon; (4) any travelling
allowance or the value of any travelling concession; (5) any sum paid
to the employed person to defray special expenses entailed on him by
the nature of his employment; or (6) any gratuity payable on the
termination of employment in cases other than those specified in sub-
clause (d).
Responsibility for payment of wages [Section 3].

Every employer shall be responsible for the payment to persons
employed by him of all wages required to be paid. In the case of the
factory, manager of that factory shall be liable to pay the wages to
employees employed by him. In the case of industrial or other
establishments, persons responsibility of supervision shall be liable
for the payment of the wage to employees employed by him. In the
84
case of railways, a person nominated by the railway administration

for specified area shall be liable for the payment of the wage to the
employees. In the case of contractor, a person designated by such
contractor who is directly under his charge shall be liable for the
payment of the wage to the employees. If he fails to pay wages to
employees, person who employed the employees shall be liable for
the payment of the wages.
[Sec 5 (3)]: With the consultation of the central government, state

government having power and can change the person responsible for
the payment of the wages in Railways, or person responsible to daily-
rated workers in the Public Works Department of the Central
Government or the State Government.
Fixation of wage according to periods. [Section 4]
Every person responsible for the payment of wages under section 3

shall fix periods in respect of which such wages shall be payable. No
wage-period shall exceed one month. That means wage can be paid
on daily, weekly, fortnightly (for every 15 days) and monthly only.
Wage period for payment of wages to employees by employer should
not exceed 30days i.e. one month according to this act. But wages
cannot be paid for quarterly, half yearly or once in a year.
Time of Payment: of Wages. [Section 5]
In railway factory or industrial or other establishment, if there are less

than 1000 employees, wages of employees should be paid before the
expiry of the 7th day after the last day of the wage period. (ex: - wages
should be paid on starting of present month within 7 days i.e. before
7th date if wage is paid on 1st in previous month). In other railway
factory or industrial or other establishment, if there are more than
1000 employees, wages of employees should be paid before the expiry
85
of the 10th day after the last day of the wage period. (ex: - wages
should be paid on starting of present month within 10 days i.e. before
10th date if wage is paid on 1st in previous month). For employees
of port area, mines, wharf or jetty, wages of employees should be paid
before the expiry of the 7h day after the last day of the wage period.
[Sec 5 (2)]
If the employee is terminated or removed for the employment by the

employer the wage of that employee should be paid within 2 days
from the day on which he was removed or terminated. Illustration:
if the employee was terminated or removed from the employment by
the employer on 10th of this month, his wage should be paid within
2 days from the day on which he was removed or terminated, i.e.
his/her wage should be paid by 12th date of this month and this date
should not exceed.
[Sec 5 (4)]
Except the payment of wage of the terminated employee, all the

wages of the employees should be paid by their employer on the
working day only.
Wages to be paid in current coin or currency notes;
All the wages of the employees must be paid in form of currently

using currency notes or coins or in both forms. Currently using
currency notes are 1000/-, 500/-, 100/-, 50/-, 20/-, 10/-, 5/- and
currently using coins are 10/-, 5/-, 2/-, 1/-.
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7. Deductions which may be made from wages;
At the time of payment of the wage to employees, employer should

make deductions according to this act only. Employer should not
make deductions as he like. Every amount paid by the employee to
his employer is called as deductions. The following are not called as
the deduction Stoppage of the increment of employee. Stoppage of
the promotion of the employee. Stoppage of the incentive lack of
performance by employee. Demotion of the employee Suspension of
the employee. The above said actions taken by the employer should
have good and sufficient cause.
Deductions [Sec 7 (2)]
Deduction made by the employer should be made in accordance with

this act only. The following are said to be the deductions and which
are acceptable according to this act.
Fines, Deductions for absence from duty, Deductions for damage

to or loss of goods made by the employee due to his negligence,
Deductions for house-accommodation supplied by the employer or
by government or any housing board, Deductions for such amenities
and services supplied by the employer as the State Government or
any officer, Deductions for recovery of advances connected with the
excess payments or advance payments of wages, Deductions for
recovery of loans made from welfare labour fund, Deductions for
recovery of loans granted for house-building or other purposes,
Deductions of income-tax payable by the employed person,
Deductions by order of a court, Deduction for payment of provident
fund, Deductions for payments to co-operative societies approved by
the State Government, Deductions for payments to a scheme of
insurance maintained by the Indian Post Office.
87
Deductions made if any payment of any premium on his life

insurance policy to the Life Insurance Corporation with the
acceptance of employee, Deduction made if any contribution made as
fund to trade union with the acceptance of employee, Deductions, for
payment of insurance premia on Fidelity Guarantee Bonds with the
acceptance of employee, Deductions for recovery of losses sustained
by a railway administration on account of acceptance by the
employee of fake currency, Deductions for recovery of losses
sustained by a railway administration on account of failure by the
employee in collections of fares and charges, Deduction made if any
contribution to the Prime Minister’s National Relief Fund with the
acceptance of employee, Deductions for contributions to any
insurance scheme framed by the Central Government for the benefit
of its employees with the acceptance of employee.
Limit for deductions [Sec 7 (3)]

The total amount of deductions from wages of employees should
not exceed 50%, but only in case of payments to co-operative
societies, deduction from wages of employee can be made up to
75%.
Fine Charges [Sec 8]
Fine should be imposed by the employer on employee with the

approval of the state government or prescribed authority. Employer
should follow the rules mentioned below for and before imposing of
fine on the employee.
Notice board of fines on employee should be displayed in the

work premises and it should contain activities that should not be
made by employee. Fine should not be imposed on the employee
until he gives the explanation and cause for the act or omission he
made. Total amount of fine should not exceed 3% of his wage. Fine
should not be imposed on any employee who is under the age of 15
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years. Fine should be imposed for one time only on the wage of the
employee for the act or omission he made. Fines should not be
recovered in the way of instalments from the employee. Fine should
be recovered within 60 days from the date on which fine were
imposed. Fine should be imposed on day act or omission made by the
employee. All fines collected from the employee should be credited
to common fund and utilize for the benefit of the employees.
Deductions for absent from duty [Sec 9]
Deductions can be made by the employer for the absence of duty by

the employee for one day or for any period. The amount deducted
for absence from the duty should not exceed a sum which bears the
same relationship to the wage payable in respect of the wage-period
as this period of absence does to such wage-period. (Example: if the
salary of an employee is 6000/- per month and he was absent for duty
for one month. Deduction from the salary for absence of duty should
not exceed 6000/-). Employee present for the work place and refuses
to work without proper reason shall be deemed to be absent from
duty. If 10 or more persons together absent for the duty without any
notice and without reasonable cause, employer can make 8 day of
wages as deduction from their wage.
Deduction for damage or loss [Sec 10]
Employer should give an opportunity to the employee to explain the

reason and cause for the damage or loss happened and deductions
made by employer from the employee wage should not exceed the
value or amount of damage or loss made by the employee. [Sec 10
(2)] All such deduction and all realizations thereof shall be recorded
in a register to be kept by the person responsible for the payment of
wages under section 3 in such form as may be prescribed.
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Deduction for services rendered [Sec 11]
House-accommodation amenity or service provided by the employer

should be accepted by the employee, then only the employer can
make deduction from the wage of the employee. Deduction should
not exceed an amount equivalent to the value of the house-
accommodation amenity or service supplied.
Deductions for Advances [Sec 12]
In case of advance paid to the employees by the employer before

employment began, such advance should be recovered by the
employer from the first payment of the wages /salary to the
employee. But employer should not recover the advance given for the
travelling expense for the employee.
Deductions for recovery of loan [Sec 12A]
Deductions for recovery of loans granted for house-building or other

purposes shall be subject to any rules made by the State Government
regulating the extent to which such loans may be granted and the rate
of interest payable thereon.
Deduction for payments to co-operative Schemes [Sec 13]
Deductions for payments to co-operative societies or deductions for

payments to scheme of insurance maintained by the Indian Post
Office or with employee acceptance deductions made for payment of
any premium on his life insurance policy to the Life Insurance
Corporation shall be subject to such conditions as the State
Government may impose.
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Maintenance of Registers and Records [Sec 13A]
Every employer should 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 and in such
form as may be prescribed. Every register and record required to be
maintained and preserved for a period of three years after the date of
the last entry made therein. It means for every transaction made
within employer and employee should have 3 years of record.
Inspectors
Inspectors [Sec 14] The state government may appoint an inspector

for purpose of this act. Every Inspector shall be deemed to be a public
servant within the meaning of the Indian Penal Code, 1860 [Sec 14(5)].
The inspector of this act is having powers mentioned below
• Inspector can make enquiry and examination whether the

employers are properly obeying the rules mentioned under
this act.
• Inspector with such assistance, if any, as he thinks fit, enter,

inspect and search any premises of any railway, factory or
industrial or other establishment at any reasonable time for
the purpose of carrying out the objects of this Act.
• Inspector can supervise the payment of wages to persons

employed upon any railway or in any factory or industrial or
other establishment.
• 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 which he has reason to believe has been
committed by an employer.
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Claims arising out of deductions from wages or delay in payment

of wages and penalty for malicious or vexatious claims [Sec 15]
(2005 amendments)
To hear and decide all claims arising out of deductions from the
wages, or delay in payment of the wages, of persons employed or
paid, including all matters, incidental to such claims, there will be an
officer mentioned below appointed by the appropriate government.
(a) any Commissioner for Workmen’s Compensation; or (b) any
officer of the Central Government exercising functions as – (i)
Regional Labour Commissioner; or (ii) Assistant Labour
Commissioner with at least two years’ experience; or (c) any officer
of the State Government not below the rank of Assistant Labour
Commissioner with at least two years’ experience; or (d) a presiding
officer of any Labour Court or Industrial Tribunal, constituted under
the Industrial Disputes Act, 1947 (14 of 1947) or under any
corresponding law relating to the investigation and settlement of
industrial disputes in force in the State; or (e) any other officer with
experience as a Judge of a Civil Court or a Judicial Magistrate, as the
authority to hear and decide for any specified area all claims arising
out of deductions from the wages, or delay in payment of the wages,
of persons employed or paid in that area, including all matters
incidental to such claims: Appropriate Government considers it
necessary so to do, it may appoint more than one authority for any
specified area and may, by general or special order, provide for the
distribution or allocation of work to be performed by them under this
Act.
[Sec 15(2)]
If any employer does opposite to the provisions of this act, any

unreasonable deduction has been made from the wages of an
employed person, or any payment of wages has been delayed, in such
case any lawyer or any Inspector under this Act or official of a
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registered trade union authorized to write an application to the

authority appointed by government for direction of payment of
wages according to this act. Every such application shall be presented
within 12 months from the date on which the deduction from the
wages was made or from the date on which the payment of the wages
was due to be made. Time of making an application can be accepted
if there is reasonable cause.
[Sec 15(3)]
After receiving of the application, the authority shall give an

opportunity to hear the applicant and the employer or other person
responsible for the payment of wages and conducts the enquiry if
necessary. It is found that there is mistake with employer; authority
shall order the employer for payment of the wage or refund to the
employee of the amount deducted unreasonably or the payment of
the delayed wages, together with the payment of such compensation
as the authority may think fit. There will not be any compensation
payable by employer if there is a reasonable and genuine cause in
delay in the payment of wages.
Powers of authorities appointed [Section 18]
Taking evidence and of enforcing the attendance of witnesses and

compelling the production of documents.
Single Application in respect of claims from Unpaid Group

[Section 16]
There is no necessity of many applications if there are many

employees whose wages has not been paid. Such all employees can
make one application to the authority for payment of wages
according to this act.
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Appeal [Section 17]
In the following situation the parties who ever dissatisfied can appeal
to the district court
• If the application dismissed by above authorities
• Employer imposed with compensation exceeding 300/-

rupees by the authorities.
• If the amount exceeding 25/- rupees withheld by the

employer to single unpaid employee. 50/- in case of many
unpaid employees
Penalty for offences under the act [Section 20] (2005 amendments)
Delay in payment of wages
• Un reasonable deductions
• Excess deduction for absence of duty
• Excess deduction for damage or loss to employer
• Excess deduction for house-accommodation amenity or

service
Punishable less than 1000/- rupees and may extend to 7500/- rupees.
• If Wage period exceed one month.
• Failure in payments of wages on a working day.
• Wages not paid in form of current coin or currency notes or in

both.
• Failure to maintain record for collected fines from employee.
• Improper usage of fine collected from employees.
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• Failure of employee to display notice containing such

abstracts of this Act and of the rules made.
Punishable with fine which may extend 3000/- rupees
• Whoever obstructs an Inspector in the discharge of his duties

under this Act
• Whoever will fully refuse to produce on the demand of an

Inspector any register or other document.
• Whoever refuses or will fully neglects to afford an Inspector

any reasonable facility for making any entry, inspection,
examination, supervision, or inquiry authorized by or under
this Act
Punishable with fine which shall not be less than 1000/- rupees but
which may extend to 7500/- rupees; Whoever repeats the same
offence committed before. Imprisonment for a term which shall not
be less than one month but which may extend to 6 months and fine
which shall not be less than 3750/- rupees but which may extend
20500/-rupees.
Payment of Undisbursed Wages in case of death of employed

person [Sec 25A]
• Paid by the employer to the person nominated by the

employee.
• Wage deposited by the employer with the prescribed

authority, the employer shall be discharged of his liability to
pay those wages.
Where no such nomination has been made or where for any reasons
such amounts cannot be paid to the person so nominated, be
deposited with the prescribed authority who shall deal with the
amounts so deposited in such manner as may be prescribed.
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Minimum Wages Act, 1948
Chapter - 8
Introduction and Learning Assistance: This chapter in entirety will

explain the entire prevailing concepts of the Minimum Wages Act,
1948, the Essential Ingredients, and classification of Wages along with
the Main provisions under the Act. It also explains on the fixing of
minimum rates of wages Section 3, and the Minimum rate of wages
(Section 4), alongside the Procedure for fixing and revising minimum
wages (section 5), with classification on the wages in kind (section 11),
with the payment of minimum rate of wages under (Section 12). The
chapter also elucidates the importance in the Fixing hours for normal
working day (section 13), the overtime (Section 14), the wages for two
or more classes of work (Section 16), the maintenance of registers and
records (Section 18), the Inspections (Section 19), the Claims (Section
20), the Penalties for Offences(Section 22) and its Incorporation
(business).
Introduction
In a labour surplus economy like India wages couldn’t be left to be

determined entirely by forces of demand and supply as it would lead
to the fixation of wages at a very low level resulting in exploitation of
less privileged class. Keeping this in view, the Government of India
enacted the Minimum Wages Act, 1948. The purpose of the Act is to
provide that no employer shall pay to workers in certain categories of
employments wages at a rate less than the minimum wage prescribed
by notification under the Act. In fact, the sole purpose of this act is to
prevent exploitation of sweated and unorganised labour, working in
96
competitive market. The Act provides for fixation / periodic revision

of minimum wages in employments where the labour is vulnerable
to exploitation. Under the Act, the appropriate Government, both
Central and State can fix / revise the minimum wages in such
scheduled employments falling in their respective jurisdiction. The
term ‘Minimum Wage Fixation’ implies the fixation of the rate or
rates of minimum wages by a process or by invoking the authority of
the State. Minimum wage consists of a basic wage and an allowance
linked to the cost of living index and is to be paid in cash, though
payment of wages fully in kind or partly in kind may be allowed in
certain cases. The statutory minimum wages have the force of law
and it becomes obligatory on the part of the employers not to pay
below the prescribed minimum wage to its employees. The obligation
of the employer to pay the said wage is absolute. The process helps
the employees in getting fair and reasonable wages more particularly
in the unorganised sector and eliminates exploitation of labour to a
large extent. This ensures rapid growth and equitable distribution of
the national income thereby ensuring sound development of the
national economy. It has been the constant endeavour of the
Government to ensure minimum rates of wages to the workers in the
sweated industries and which has been sought to be achieved
through the fixation of minimum wages, which is to be the only
solution to this problem.
Minimum Wage ; The Act under section 2(h) defines wages, but does
not define “minimum wages”. Section 2(h)”wages” means all
remuneration capable of being expressed in terms of money which
would if the terms of the contract of employment express or implied
were fulfilled be payable to a person employed in respect of his
employment or of work done in such employment and includes
house rent allowance but does not include – (i) the value of – (a) any
house accommodation supply of light water medical attendance or
(b) any other amenity or any service excluded by general or special
order of the appropriate government; (ii) any contribution paid by
97
the employer to any person fund or provident fund or under any

scheme of social insurance; (iii) any travelling allowance or the value
of any travelling concession; (iv) any sum paid to the person
employed to defray special expenses entailed on him by the nature of
his employment; or (v) any gratuity payable on discharge;
Essential Ingredient
Wage should be by way of remuneration, it should be capable of

being expressed in terms of, it should be payable to a person
employed in respect of his employment or of work done in such
employment. It should be payable to a, it should be payable if the
terms of employment, express or implied, are fulfilled, it includes
house rent allowance, it does not include house accommodation,
supply of light, water, medical attendance, travelling allowance,
contribution of employer towards provident fund, gratuity, any
scheme of social insurance etc.
Classification of Wages
The Supreme Court has classified “Wages” into three categories. They
are: The Living Wage (highest standard of wage), the Fair Wage
(between living and minimum wage), the Minimum Wage. (it is the
lowest standard of wage), the living and fair wages are acquired by
workers with their “collective bargaining”. When the workers have
no unions and who have no capacity of collective bargain could not
demand the employers for their just and genuine wage. The State
come to rescue them through such legislations.
Main provisions under the Act
Fixing of minimum rates of wages Section 3
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The appropriate Government may fix the minimum rates of wages

payable to employees employed in an employment specified in Part
– I or Part – II of the Schedule and in an employment subsequently
added to the Schedule. The Government may review the minimum
rates of wages and revise the minimum rates at intervals not
exceeding five years. The appropriate Government may refrain from
fixing minimum wages in respect of any scheduled employment in
which there are in the whole State less than one thousand employees
engaged in such employment. The appropriate Government may fix
separate minimum rates of wages for time rate and for piece rate.
Different wage rates may be fixed for different scheduled
employments, different classes of work in the same scheduled
employment, for adults, adolescents, children and apprentices and
for different localities and for any one or more of the wage periods,
viz., by the hour or by the day or by the month or by such larger wage
period as may be prescribed.
Minimum rate of wages (Section 4); Any minimum rate of wages

fixed or revised may consist of, a basic rate of wages and a special
allowance ; or a basic rate of wages with or without cost of living
allowance and the cash value of concessions in respect of supplies of
essential commodities at concessional rates; or an all-inclusive rate
allowing for the basic rate, the cost of living allowance and the cash
value of concessions, if any.
Procedure for fixing and revising minimum wages (section 5)
The appropriate Government is required to appoint an Advisory

Board for advising it, generally in the matter of fixing and revising
minimum rates of wages. The Central Government appoints a
Central Advisory Board for the purpose of advising the Central and
State Governments in the matters of the fixation and revision of
minimum rates of wages as well as for co-ordinating the work of
Advisory Boards. The Central Advisory Board consists of persons to
be nominated by the Central Government representing employers
99
and employees in the scheduled employments, in equal number and

independent persons not exceeding one third of its total number of
members. One of such independent persons is to be appointed the
Chairman of the Board by the Central Government.
Wages in kind (section 11)
Minimum wages payable under this Act are to be paid in cash.

However, the payment of minimum wages can be made wholly or
partly in kind, by notifying in the official Gazette, where it is
customary to pay wages either wholly or partly in kind.
Payment of minimum rate of wages (Section 12)
The employer is required to pay to every employee, engaged in a

scheduled employment under him, wages at a rate not less than the
minimum rate of wages notified for that class of employees without
any deduction except as may be authorised. (see the Payment of
Wages Act 1936 (4 of 1936) for permissible deduction)
Fixing hours for normal working day (section 13)
In regard to any scheduled employment, minimum rates of wages in

respect of which have been fixed under this Act, the appropriate
Government may
1. fix the number of hours of work which shall constitute a

normal working day, inclusive of one or more specified
intervals;
2. provide for a day of rest in every period of seven days which

shall be allowed to all employees or to any specified class of
employees and for the payment of remuneration in respect of
such days of rest;
100
3. Provide for payment for work on a day of rest at a rate not less
than the overtime rate.
Overtime (Section 14)
If any employee whose minimum rate of wages is fixed under the Act
works on any day in excess of the number of hours constituting
normal working day, the employer is required to pay him for excess
hours at the overtime rate fixed under this Act or under any law of
the appropriate Government for the time being in force, whichever is
higher.
Wages for two or more classes of work (Section 16)
If an employee does two or more classes of work, to each of which a

different rate of wages is applicable, the employer is required to pay
to such employee in respect of the time respectively occupied in each
such class of work, wages at not less than the minimum rate in force
in respect of each such class.
Maintenance of registers and records (Section 18)
Every employer is required to maintain registers and records giving

particulars of employees, the work performed by them, the wages
paid to them, the receipts given by them and any other required
particulars.
Inspections (Section 19)
The appropriate Government may, by notification in the official

Gazette, appoint inspectors for the purpose of this Act and define the
local limits for their functions.
101
Claims (Section 20)

Gazette, appoint Labour Commissioner or Commissioner for
Workmen’s Compensation or any officer not below the rank of
Labour Commissioner or any other officer with experience as a judge
of a civil court or as a Stipendiary Magistrate, to hear and decide for
any specified area, all claims arising out of the payment of less than
the minimum rates of wages as well as payment for days of rest or for
work done.
Penalties for Offences (Section 22)
Any employer who contravenes any provision of this Act shall be

punishable with imprisonment for a term, which may extend to six
months or with fine, which may extend to five hundred rupees or
with both.
Incorporation (business)
Incorporation is the forming of a new corporation (a

corporation being a legal entity that is effectively recognized as a
person under the law). The corporation may be a business, a non-
profit organization, sports club, or a government of a new city or
town.
102
Trade Unions in India
Chapter - 9
Introduction and Learning Assistance: This chapter explains in

detail the Trade unions in India, the Evolution of Trade Unions in
India, with a detailed analysis on the history as well as Independence
(1947) to Liberalization (1991), and a very precise analysis on the
Central Trade Union Organizations (CTUOs) of India.
Evolution of Trade Unions in India
Introduction: Trade Unions in India are registered and file annual

returns under the Trade Union Act (1926). Statistics on Trade Unions
are collected annually by the Labour Bureau of the Ministry of
Labour, Government of India. As per the latest data, released for 2012,
there were 16,154 trade unions which had a combined membership
of 9.18 million (based on returns from 15 States - out of a total of 36
States). The Trade Union movement in India is largely divided along
political lines and follows a pre-Independence pattern of overlapping
interactions between political parties and unions. The net result of
this type of system is debated as it has both advantages and
disadvantages. The firm or industry level trade unions are often
affiliated to larger Federations. The largest Federations in the country
represent labour at the National level and are known as Central
Trade Union Organizations (CTUO). As of 2002, when the last Trade
Union verification was carried out, there are 12 CTUOs recognized by
the Ministry of Labour.
103
History
The setting up of textile and clothing mills around the port cities of
Bombay (now Mumbai), Calcutta (now Kolkata), Madras (now
Chennai) and Surat in the second half of the 19th century led to the
beginnings of the industrial workforce in India. Several incidents of
strikes and protests by workers have been recorded during this time.
The credit for the first association of workers is generally given to the
Bombay Mill-Hands Association founded by Narayan Meghaji
Lokhande in 1884. This was just after the passing of the Factories Act
(1881) by the British Government of the time. The ensuing years saw
the formation of several labour associations and unions. The first
clearly registered trade-union is considered to be the Madras Labour
Union founded by B._P. Wadia in 1918 while the first trade union
federation to be set up was the All India Trade Union Congress in
1920. Following the rapid growth of unions around the time of the
First World War, the Russian Revolution and the setting up of the ILO
- industrial conflict began to increase and over 1000 strikes were
recorded between 1920 and 1924. The waves of strikes boiled over
with the arrest of prominent leaders and trade-unionists in the
infamous 'Cawnpore Conspiracy case' in 1924 with the union leaders
being arrested and accused of attempting a Communist revolution
against the existing British government. Subsequently, the Trade
Union Act (1926) was passed which created the rules for the
regulation and closer monitoring of Trade Unions. In the first year of
the law's operation, in 1927-28, 28 unions registered and submitted
returns with a total membership 100,619.[3] The number of unions
grew rapidly after that and by the time of Independence of India in
1947, there were 2,766 unions registered which had a combined
membership of over 1.66 million. This led to significantly favourable
social legislation being enacted in the first decade of Independence
and several important labour laws were passed during this time.
104
Independence (1947) to Liberalization (1991)
Following its Independence in 1947 and the formation of the Republic

in 1950, India followed a Socialist economic approach encouraging
public sector employment and pro-worker legislations. The trade-
union movement reflected the main political divisions of the time and
was divided mainly along Socialist and Communist lines. The
subsequent decades saw significant expansion in trade union
membership with the number of active unions reaching its peak in
the mid-1970s and mid-1980s. While the 1970s in India was a period
characterized by political instability, the 1980s was characterized by
the beginnings of a distinct turn towards more market-friendly
policies, support for industrialists and an implicit opposition to
workers. A key break in the history of textile workers was the Great
Bombay textile strike of 1982 which subsequently led to a long and
complicated stalemate.
Liberalization (1991) to Present
The period following the Economic liberalization in 1991 was

characterized by declining public sector employment and
encouragement for the private sector. Efforts for unionization in the
private sector was often met with opposition and the wider general
withdrawal of State support for workers further undermined their
bargaining power. These policies led to a stagnation in the number of
unionized formal sector workers. A gradual shift in focus about the
importance of the Informal sector and 'Informal employment in the
formal sector' meant that trade unions also began to focus on these
workers. This has led to greater enrolment of these workers and
subsequently led to increases in union membership. The Central
Trade Union Organizations (CTUO) increased their combined
membership from 13.21 million in 1989 to 24.85 million in 2002.
Almost all the CTUOs now have at least 20 percent of their official
members coming from the informal sector.
105
Central Trade Union Organizations (CTUOs) of India
Local, firm-level or industry-level trade unions are often affiliated to

larger Federations. The largest Federations in the country represent
labour at the National level and are known as Central Trade Union
Organizations (CTU or CTUO). To acquire status as a CTUO, a trade
union federation must have a verified membership of at least 500,000
workers who are spread over a minimum of four states and four
industries (including agriculture). Trade-union membership
verification is usually done once in a decade and an updated
verification with new criteria is currently underway, with 2011 as the
reference year. Complications around membership verification have
existed due to discrepancies between membership claimed by the
unions and actual members. These complications have increased in
recent years following the wider inclusion of informal sector workers
in union membership data. The following is a list of national-level
CTUOs as recognized by the Ministry of Labour, Government of
India. The list is for the reference year 2002 whose verification was
completed in 2008. The political affiliation of the union federation is
mentioned in brackets.
106
Equal Remuneration Act 1976
Chapter - 10
Introduction and Learning Assistance: This chapter focuses on the

Equal Remuneration Act 1976, along with the main provisions of the
Maternity Benefit Act, 1961, and the main provisions of the Act.
The Equal Remuneration Act, 1976 aims to provide for the payment
of equal remuneration to men and women workers and for the
prevention of discrimination, on the ground of sex, against women in
the matter of employment and for matters connected therewith or
incidental thereto. According to the Act, the term 'remuneration'
means "the basic wage or salary and any additional emoluments
whatsoever payable, either in cash or in kind, to a person employed
in respect of employment or work done in such employment, if the
terms of the contract of employment, express or implied, were
fulfilled". Nothing in this Act shall apply: - (i) to cases affecting the
terms and conditions of a woman's employment in complying with
the requirements of any law giving special treatment to women; or
(ii) to any special treatment accorded to women in connection with
the birth or expected birth of a child, or the terms and conditions
relating to retirement, marriage or death or to any provision made in
connection with the retirement, marriage or death. The Central
Industrial Relations Machinery (CIRM) in the Ministry of Labour is
responsible for enforcing this Act. CIRM is an attached office of the
Ministry and is also known as the Chief Labour Commissioner
(Central) [CLC(C)] Organization. The CIRM is headed by the Chief
Labour Commissioner (Central).
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The main provisions of the Act are: -
▪ No employer shall pay to any worker, employed by him/ her

in an establishment, a remuneration (whether payable in cash
or in kind) at rates less favorable than those at which
remuneration is paid by him/ her to the workers of the
opposite sex in such establishment for performing the same
work or work of a similar nature. Also, no employer shall, for
the purpose of complying with the provisions of this Act,
reduce the rate of remuneration of any worker.
▪ No employer shall, while making recruitment for the same
work or work of a similar nature, or in any condition of service
subsequent to recruitment such as promotions, training or
transfer, make any discrimination against women except
where the employment of women in such work is prohibited
or restricted by or under any law for the time being in force.
▪ Every employer shall maintain such registers and other
documents in relation to the workers employed by him/ her
in the prescribed manner.
▪ If any employer:- (i) makes any recruitment in contravention
of the provisions of this Act; or (ii) makes any payment of
remuneration at unequal rates to men and women workers for
the same work or work of a similar nature; or (iii) makes any
discrimination between men and women workers in
contravention of the provisions of this Act; or (iv) omits or
fails to carry out any direction made by the appropriate
Government, then he/ she shall be punishable with fine or
with imprisonment or with both.
▪ Where an offence under this Act has been committed by a
company, every person who at the time the offence was
committed, was in charge of, and was responsible to the
company for the conduct of the business of the company, as
well as the company, shall be deemed, to be guilty of the
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offence and shall be liable to be proceeded against and

punished accordingly
The implementation of the Equal Remuneration Act, 1976 is done at

two levels.
Central Sphere: The Act is being implemented by the Central

Government in relation to any employment carried on by or under
the authority of the Central Government or a railway administration,
or in relation to a banking company, a mine, oil field or major port or
any corporation established by or under a Central Act.
In the Central sphere, the enforcement of Equal Remuneration Act,

1976 is entrusted to the Chief Labour Commissioner (Central) who
heads the Central Industrial Relations Machinery (CIRM). The
Central Government has appointed Labour Enforcement Officers as
Inspectors for the purpose of making investigation by causing
production of relevant registers/records as to whether the provisions
of the Equal Remuneration Act, 1976 are being complied with by the
employers, who are required to maintain the roll of employee in
Form-D. Assistant Labour Commissioners have been appointed as
authorities for the purpose of hearing and deciding complaints with
regard to the contravention of any provision of the Act, claims arising
out of nonpayment of wages at equal rate to men and women
workers. The Regional Labour Commissioners have been appointed
as appellate authorities to hear complaints in respect of cases decided
by the ALCs.
State Sphere: In respect of all employments other than those where

the Central Government is the appropriate Government, the
implementation rests with the State Governments. In the case of
employments where the State Government are appropriate
authorities, the enforcement of the provisions of the E.R. Act, 1976 is
done by the officials of the State Labour Department. The Central
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Government monitors the implementation of the provisions of the

Equal Remuneration Act, 1976 by the State Governments.
Central/State Advisory Committee
A Central Advisory Committee has been set up at the Centre under

the Act to advise the Government on providing increasing
employment opportunities for women and generally reviewing the
steps taken for effective implementation of the Act. The Committee
has been reconstituted vide Gazette Notification dated 12.10.2010.
The first meeting of re-constituted Committee was held on 22.02.2011
under the Chairmanship of Hon’ble LEM.
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The Maternity Benefit Act, 1961
Chapter - 11

Equal Remuneration Act 1976, the main provisions of the Act and the
explanation of its implementation and the impact it has created in
India. It also moves to explain on the support centers like the
Central/State Advisory Committee
Introduction: The Maternity Benefit Act, 1961 regulates employment

of women in certain establishments for a certain period before and
after childbirth and provides for maternity and other benefits. Such
benefits are aimed to protect the dignity of motherhood by providing
for the full and healthy maintenance of women and her child when
she is not working. The Act is applicable to mines, factories, circus
industry, plantations, shops and establishments employing ten or
more persons, except employees covered under the Employees’ State
Insurance Act, 1948. It can be extended to other establishments by the
State Governments.
The Central Industrial Relations Machinery (CIRM) in the Ministry

of Labour is responsible for enforcing this Act. CIRM is an attached
office of the Ministry and is also known as the Chief Labour
Commissioner (Central) [CLC(C)] Organization. The CIRM is
headed by the Chief Labour Commissioner (Central).
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The main provisions of the Act are: -
▪ No employer shall knowingly employ a woman in any

establishment during the six weeks immediately following the
day of her delivery or her miscarriage. Also, no woman shall work
in any establishment during the six weeks immediately following
the day of her delivery or her miscarriage.
▪ Every woman shall be entitled to, and her employer shall be liable
for, the payment of maternity benefit at the rate of the average
daily wage for the period of her actual absence immediately
preceding and including the day of her delivery and for the six
weeks immediately following that day. The 'average daily wage'
means the average of the woman's wages payable to her for the
days on which she has worked during the period of three calendar
months immediately preceding the date from which she absents
herself on account of maternity, or one rupee a day, whichever is
higher.
▪ No woman shall be entitled to maternity benefit unless she has
actually worked in an establishment of the employer from whom
she claims maternity benefit, for a period of not less than one
hundred and sixty days in the twelve months immediately
preceding the date of her expected delivery. For the purpose of
calculating the days on which a woman has actually worked in
the establishment, the days for which she has been laid off during
the period of twelve months immediately preceding the date of
her expected delivery shall be taken into account.
▪ The maximum period for which any woman shall be entitled to
maternity benefit shall be twelve weeks, that is to say, six weeks
up to and including the day of her delivery and six weeks
immediately following that day.
▪ No deduction from the normal and usual daily wages of a woman
entitled to maternity benefit shall be made by reason only of - (i)
the nature of work assigned to her by virtue of the provisions of
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the Act; or (ii) breaks for nursing the child allowed to her under
the provisions of the Act.
▪ If a woman works in any establishment after she has been
permitted by her employer to absent herself for any period,
during such authorized absence, she shall forfeit her claim to the
maternity benefit for such period.
▪ If any employer contravenes the provisions of this Act or the rules
made thereunder, he/ she shall be punishable with imprisonment
or with fine or with both; and where the contravention is of any
provision regarding maternity benefit or regarding payment of
any other amount and such maternity benefit or amount has not
already been recovered, the court shall, in addition recover such
maternity benefit or amount as if it were a fine and pay the same
to the person entitled thereto.
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Understanding Minimum Wages and Its Applications in India
Chapter - 12
Understanding Minimum Wages and Its

Applications in India
Introduction and Learning Assistance: This chapter focuses

Industrial system, it also elaborates on the concepts and the
applications of the minimum wage structures practiced across the
world as well as in the contemporary India. The structure of
minimum wages has changed across the world, and it is gaining
recognition every employee in the world since the awareness on the
minimum wage calculations are now universal. The chapter next
leads to essential ingredients on the classification of wages, and
follows through the main provision under the act.
Introduction
In a labour surplus economy like India wages couldn’t be left to be

determined entirely by forces of demand and supply as it would lead
to the fixation of wages at a very low level resulting in exploitation of
less privileged class. Keeping this in view, the Government of India
enacted the Minimum Wages Act, 1948. The purpose of the Act is to
provide that no employer shall pay to workers in certain categories of
employments wages at a rate less than the minimum wage prescribed
by notification under the Act. In fact, the sole purpose of this act is to
prevent exploitation of sweeted and unorganised labour, working in
competitive market. The Act provides for fixation / periodic revision
of minimum wages in employments where the labour is vulnerable
to exploitation. Under the Act, the appropriate Government, both
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Central and State can fix / revise the minimum wages in such
scheduled employments falling in their respective jurisdiction.
The term ‘Minimum Wage Fixation’ implies the fixation of the rate or
rates of minimum wages by a process or by invoking the authority of
the State. Minimum wage consists of a basic wage and an allowance
linked to the cost of living index and is to be paid in cash, though
payment of wages fully in kind or partly in kind may be allowed in
certain cases. The statutory minimum wages have the force of law
and it becomes obligatory on the part of the employers not to pay
below the prescribed minimum wage to its employees. The obligation
of the employer to pay the said wage is absolute. The process helps
the employees in getting fair and reasonable wages more particularly
in the unorganised sector and eliminates exploitation of labour to a
large extent. This ensures rapid growth and equitable distribution of
the national income thereby ensuring sound development of the
national economy. It has been the constant endeavour of the
Government to ensure minimum rates of wages to the workers in the
sweated industries and which has been sought to be achieved
through the fixation of minimum wages, which is to be the only
solution to this problem.
Concepts and Applications of Minimum Wage ;
The Act under section 2(h) defines wages, but does not define
“minimum wages”. As it is not possible to bring down a uniform
minimum wage for all the industries throughout the country. Section
2(h)”wages” means all remuneration capable of being expressed in
terms of money which would if the terms of the contract of
employment express or implied were fulfilled be payable to a person
employed in respect of his employment or of work done in such
employment and includes house rent allowance but does not include
–
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(i) the value of –

(a) any house accommodation supply of light water medical
attendance or
order of the appropriate government;
(ii) any contribution paid by the employer to any person fund or
provident fund or under any scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses
entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge;
II(a)(i) Essential Ingredient
1. Wage should be by way of remuneration
2. It should be capable of being expressed in terms of
3. It should be payable to a person employed in respect of his

employment or of work done in such employment.
4. It should be payable to a
5. It should be payable if the terms of employment, express or

implied, are fulfilled.
6. It includes house rent allowance.
7. It does not include house accommodation, supply of light,

water, medical attendance, traveling allowance, contribution
of employer towards provident fund, gratuity, any scheme of
social insurance etc.
II(b)Classification of Wages
The Supreme Court has classified “Wages” into three categories. They
are:
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1. The Living Wage (highest standard of wage)
2. The Fair Wage (between living and minimum wage)
3. The Minimum Wage. (it is the lowest standard of wage)
The living and fair wages are acquired by workers with their
“collective bargaining”. When the workers have no unions and who
have no capacity of collective bargain could not demand the
employers for their just and genuine wage. The State come to rescue
them through such legislations.
III Main provisions under the Act
1. Fixing of minimum rates of wages Section 3
1. The appropriate Government may fix the minimum

rates of wages payable to employees employed in an
employment specified in Part – I or Part – II of the
Schedule and in an employment subsequently added
to the Schedule. The Government may review the
minimum rates of wages and revise the minimum
rates at intervals not exceeding five years.
2. The appropriate Government may refrain from fixing

minimum wages in respect of any scheduled
employment in which there are in the whole State less
than one thousand employees engaged in such
employment.
3. The appropriate Government may fix separate

minimum rates of wages for time rate and for piece
rate. Different wage rates may be fixed for different
scheduled employments, different classes of work in
the same scheduled employment, for adults,
adolescents, children and apprentices and for different
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localities and for any one or more of the wage periods,

viz., by the hour or by the day or by the month or by
such larger wage period as may be prescribed.
2. Minimum rate of wages (Section 4)
Any minimum rate of wages fixed or revised may consist of
1. a basic rate of wages and a special allowance; or
2. a basic rate of wages with or without cost of living allowance

and the cash value of concessions in respect of supplies of
essential commodities at concessional rates; or
3. an all-inclusive rate allowing for the basic rate, the cost of

living allowance and the cash value of concessions, if any.
3. Procedure for fixing and revising minimum wages (section 5)
The appropriate Government is required to appoint an Advisory

Board for advising it, generally in the matter of fixing and revising
minimum rates of wages.
The Central Government appoints a Central Advisory Board for the

purpose of advising the Central and State Governments in the matters
of the fixation and revision of minimum rates of wages as well as for
co-ordinating the work of Advisory Boards.
The Central Advisory Board consists of persons to be nominated by

the Central Government representing employers and employees in
the scheduled employments, in equal number and independent
persons not exceeding one third of its total number of members. One
of such independent persons is to be appointed the Chairman of the
Board by the Central Government.
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4. Wages in kind (section 11)
Minimum wages payable under this Act are to be paid in cash.

However, the payment of minimum wages can be made wholly or
partly in kind, by notifying in the official Gazette, where it is
customary to pay wages either wholly or partly in kind.
5. Payment of minimum rate of wages (Section 12)
The employer is required to pay to every employee, engaged in a

scheduled employment under him, wages at a rate not less than the
minimum rate of wages notified for that class of employees without
any deduction except as may be authorised. (see the Payment of
Wages Act 1936 (4 of 1936) for permissible deduction)
6. Fixing hours for normal working day (section 13)
In regard to any scheduled employment, minimum rates of wages in

Government may fix the number of hours of work which shall
constitute a normal working day, inclusive of one or more specified
intervals; provide for a day of rest in every period of seven days
which shall be allowed to all employees or to any specified class of
employees and for the payment of remuneration in respect of such
days of rest; provide for payment for work on a day of rest at a rate
not less than the overtime rate.
7. Overtime (Section 14)
If any employee whose minimum rate of wages is fixed under the Act
works on any day in excess of the number of hours constituting
normal working day, the employer is required to pay him for excess
hours at the overtime rate fixed under this Act or under any law of
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the appropriate Government for the time being in force, whichever is

higher.
8. Wages for two or more classes of work (Section 16)
If an employee does two or more classes of work, to each of which a

different rate of wages is applicable, the employer is required to pay
9. Maintenance of registers and records (Section 18)
Every employer is required to maintain registers and records giving

particulars of employees, the work performed by them, the wages
paid to them, the receipts given by them and any other required
particulars.
10. Inspections (Section 19)

Gazette, appoint inspectors for the purpose of this Act and define the
local limits for their functions.
11. Claims (Section 20)

Gazette, appoint Labour Commissioner or Commissioner for
Workmen’s Compensation or any officer not below the rank of
Labour Commissioner or any other officer with experience as a judge
of a civil court or as a Stipendiary Magistrate, to hear and decide for
any specified area, all claims arising out of the payment of less than
the minimum rates of wages as well as payment for days of rest or for
work done.
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12. Penalties for Offences (Section 22)
Any employer who contravenes any provision of this Act shall be

punishable with imprisonment for a term, which may extend to six
months or with fine, which may extend to five hundred rupees or
with both.
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Legislative Acts Under Government of India and Labour Law
Chapter - 13
Legislative Acts Under Government of India

and Labour Law
(Adapted as and from Gazette of Government

of India)
Introduction and Learning Assistance: This chapter profoundly

leads the discussion from the areas of Legislative Acts under
Government of India and Labour Law, and its applications in the
regular affairs of the industries. It also traverses through the
apprenticeship rules 1991. The chapter also highlights on the
reservation of training places, as well as the training periods with
details of the kinds of training that is done across the country. It also
focuses on the maintenance of record of work by apprentices, and
matters related to hours of work and its confusions in the industrial
environment across the world and India in particular. The records
and returns required, the maintenance and also concentrate on the
SCHEDULE VI, and the terms and conditions of the contract of
apprenticeship for Graduate is explained in detail.
122
Introduction
Various legislative acts under government of India and labour law
The apprenticeship rules, 1991
Vide G.S.R. 356, dated 15th July 1992, published in the Gazette of
India, Pt. II sec. 3(i), dated 1st August 1992.
In exercise of the powers conferred by sub-section (1) of section 37 of

the Apprentices Act, 1961 (52 of 1961), and after consulting the
Central Apprenticeship Council, the Central Government hereby
makes the following rules in super session of the Apprenticeship
Rules, 1962, except as respects things done or omitted to be done
before such super session, namely: –
Short title and commencement. –
(1) These Rules may be called the Apprenticeship Rules, 1991.
(2) They shall come into force on the date of their publication in
the Official Gazette.
Definitions. –In these rules, unless the context otherwise requires, –
(1) “Act” means the Apprentices Act, 1961 (52 of 1961);
(2) “Diploma Holder” means a person who holds a diploma in

engineering or technology or equivalent qualification granted by a
State Board of Technical Education, or recognized by the State
Government concerned or the Central Government;
(3) “Engineering Graduate” means a person, who-
(a) Holds a degree in engineering or technology granted by-
(i) A statutory University, or
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(ii) By an institution empowered to grant such degree by an Act of

Parliament;
(b) Has passed the Graduate ship examination of professional bodies

recognized by the Central Government as equivalent to degree; or
(c) Holds the qualifications, which exempt him from Section A and B
examinations of the Institution of Engineers (India);
(4) “Vocational certificate holder” means a person who holds a

certificate in a Vocational Course, involving two years of study after
the completion of secondary stage of school education, recognized by
the All India Council for Technical Education;
(5) “National Classification of Occupations”’ means the National

Classification of Occupations adopted by the Government of India,
Ministry of Labour, Directorate General of Employment and
Training;
(6) “Registered Medical Practitioner” means a person whose name

entered in the register maintained under any law for the time being
in force in any state regulating the registration of practitioners of
medicine;
(7) “Sandwich Course Student” means a student undergoing a

Sandwich Course of studies at any of the technical Institutions
recognized for the purpose and leading to the award of degree or
diploma in engineering or technology;
(8) “Schedule” means the Schedule appended to these rules;
(9) “Standard Industrial Classification” means the Standard

Industrial Classification adopted by the Government of India,
Ministry of Labour, Directorate-General of Employment and
Training;
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(10) All the words and expressions, not defined here in these rules,
but defined in the Act, shall have the same meaning as given to them
in the said Act.
Standard of educational. –
(1) A person shall be eligible for being engaged as a trade apprentice

if he satisfies the minimum educational qualifications as specified in
Schedule 1.
(2) A person shall be eligible for being engaged as a graduate,

technician, or technician vocational apprentice if he satisfies one of
the minimum educational qualifications specified in Schedule 1A.
Provided that-
(a) No Engineering Graduate or Diploma holder or Vocational

Certificate holder who had training or job experience for a period of
one year or more, after the attainment of these qualifications shall be
eligible for being engaged as an apprentice under the Act;
(b) No Sandwich Course Student shall be eligible for being engaged

as an apprentice under the Act after passing the final examination of
the technical institution wherein such student is undergoing the
course, unless so approved by the Regional Central Apprenticeship
Advisers;
(c) A person who has been a Graduate or Technician or Technician

(Vocational) apprentice under the Act and in whose case the contract
of apprenticeship was terminated for any reason whatsoever shall not
be eligible for being engaged as an apprentice again under the Act
without the prior approval of the Apprenticeship Adviser.
Standard of physical fitness. –
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(1) A person shall be eligible for being engaged as an apprentice if he

satisfies the minimum standards of physical fitness specified in
Schedule II:
Provided that a person who has undergone institutional training in a

school or other institution recognized by or affiliated to the National
Council or the All-India Council or a statutory University or a State
Board of Technical Education and has passed the examination or tests
conducted by these bodies, or is undergoing institutional training in
a school or institution so recognized or affiliated in order that he may
acquire a degree or diploma in engineering or technology or
certificate in vocational course or equivalent qualification shall, if he
has already undergone medical examination in accordance with the
rules for the admission to the school or institution, be deemed to have
complied with the provisions of this rule.
Reservation of training places. –In respect of each of the States

specified in column (2) of the Schedule-IIA training places shall be
reserved by the employer for the Scheduled Castes and Scheduled
Tribes in every designated trade so that the ratio of the apprentices
belonging to the Scheduled Castes and Scheduled Tribes to the total
number of apprentices in such designated trade or trades shall be
specified in columns (3) and (4) of the said Schedule (and where there
is more than one designated trade in an establishment such training
places shall be reserved also on the basis of total number of
apprentices in all designated trades in such establishments):
Provided that when the prescribed number of persons belonging

either to the Scheduled Castes or to the Scheduled Tribes are not
available, the training places so reserved for them may be filled by
persons belonging to the Scheduled Tribes or as the case may be, to
the Scheduled Castes and if the prescribed training places cannot be
filled even in the above given manner, then the training places so
lying unfilled may be filled by persons not belonging to the
Scheduled Castes or the Scheduled Tribes.
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Registration of contract of apprenticeship. -
(1) Every employer shall send to the Apprenticeship Adviser the

contract of apprenticeship for registration within three months of the
date on which it was signed.
(2) (a) The Central Government may specify model contract forms for
the following categories of apprentices: –
(i) Trade Apprentices;
(ii) Graduate, Technician and Technician (Vocational) Apprentices;
(b) The model contract form as may be specified by the Central

Government with such variation as the circumstances of each case
may require, be used for the respective purposes therein mentioned.
(3) The obligation of the employer and that of the trade apprentice
shall be as specified in Schedule V. The terms and conditions in
respect of graduate, technician and technician (vocational)
apprentices shall be as specified in Schedule VI.
Training Periods
(1) 1[The period of apprenticeship training in the case of trade of

apprentices referred to in clause (b) of section 6 of the Act shall be as
specified in Schedule I.]
(2) (a) Where a trade apprentice is unable to complete the full

apprenticeship course within the period prescribed in sub-rule (1) or
to take the final test owing to illness or other circumstances beyond
his control the establishment concerned shall extend the period of his
apprenticeship until he completes the full apprenticeship course and
the next test is held if so required by the Apprenticeship
Adviser. Similar extension of the period of training may also be
allowed in the case of those trade apprentices who having completed
the course, fail in the final test. A trade apprentice who fails in the
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second test shall not be allowed any extension of the period of

training;
(b) (i)Where a trade apprentice is unable to complete the period of

apprenticeship training due to strike or lock-out or lay-off in an
establishment where he is undergoing training and is not
instrumental for the same, the period of his apprenticeship training
shall be extended for a period equal to the period of strike or lock-out
or lay-off, as the case may be, and he shall be paid stipend during the
period of such strike or lock-out or lay-off or for a maximum period
of six months, whichever is less;
(ii) If the strike or lock-out or lay-off is likely to continue for a longer

period, the employer shall follow the procedure for novation of
contract of apprenticeship of a trade apprentice referred to in clause
(i) with the other employer as specified in section 5 of the Act.
(3) In the case of trade apprentices other than those covered by clause
(a) of section 6 of the Act, the first six months of the period of training
shall be treated as period of probation.
(4) (a) The period of apprenticeship training in the case of

Engineering Graduates, Diploma holders and Vocational Certificate
holders, shall be one year.
(b) In the case of Sandwich Course Students, the period of practical

training they undergo as pan of apprenticeship course of studies shall
be the period of apprenticeship training.
(c) Where a Graduate/Technician/Technician (Vocational)

Apprentice is unable to complete the period of Apprenticeship
training due to strike/lockout/lay off in an establishment where he
is undergoing training and is not instrumental in the same, the period
of his Apprenticeship Training would be extended equal to the period
of strike/ lockout/lay off and he shall be paid stipend during the
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period of such strike/lockout/ lay off for a maximum period of six

months, whichever is less.
(d) If the strike/lock-out/lay off is likely to continue for a longer

period, the employer shall follow the procedure for novation of
contract of apprenticeship for the apprentices referred to in clause (c)
with the other employers as specified in section 5 of the Act.
Subs. by G.S.R. 123 dated 24th June 1998 (w.e.f. 4-7-1998).
1[8. Compensation for termination of apprenticeship. –Where the

contract of apprenticeship is terminated through failure on the part
of any employer in carrying out the terms and conditions thereof,
such employer shall be liable to pay the apprentice compensation of
an amount equivalent to his three months last drawn stipend.]
Subs. by G.S.R. 404 dated 25th November 1997 (w.e.f 13-12-1997).
Qualifications of persons placed in charge of the training of

apprentices. – A person placed in charge of the training of apprentices
by the employer shall possess the qualifications specified in Schedule
IV to these rules.
The person so appointed shall be of the appropriate level

commensurate with the number of seats located for apprenticeship
training and size of the establishment.
1[9A. Staffing pattern and qualifications of instructional staff for

practical and basic training of apprentices. –Staffing pattern and
qualifications of instructional staff for imparting practical and basic
training to apprentices shall be as specified in Schedule IVA.]
Ins. by G.S.R. 190 (E) dated 26th February 1999 (w.e.f. 28-2-1999).
Maintenance of record of work by apprentices–Every Graduate or

Technician or Technician (Vocational) Apprentice shall maintain a
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daily record of the work done by him relating to the apprenticeship

training in the form of a workshop or laboratory note book.
Hours of work. –
(1) Weekly hours of work of a trade apprentice while undergoing

practical training shall be as follows, namely: –
(a) The total number of hours per week shall be 42 to 48 hours

(including the time spent on Related Instruction);
(b) Trade apprentices undergoing basic training shall ordinarily work

for 42 hours per week including the time spent on Related Instruction;
(c) Trade apprentices during the second year of apprenticeship shall

work for 42 to 48 hours per week including the time spent on Related
Instruction;
(d) Trade apprentice during the third and subsequent years of

apprenticeship shall work for the same number of hours per week as
the workers in the trade in the establishment in which the trade
apprentice is undergoing apprenticeship training.
(2) No trade apprentice shall be engaged on such training between

the hours of 10.00 p.m. to 6.00 a.m. except with the prior approval of
the Apprenticeship Adviser who shall give his approval if he is
satisfied that it is in the interest of the training of the trade apprentice
or in public interest.
(3) Graduate, Technician and Technician (Vocational) Apprentices

shall work according to the normal hours of work of the department
in the establishment to which they are attached for training.
Grant of leave to apprentices. –
(1) In establishments where proper leave rules do not exist or the total
leave of different types admissible to their Workers is less than thirty-
seven days in a year, the apprentice shall be entitled to the following
130
kinds of leave and subject to the conditions specified under each kind
of leave.
(a) Casual leave:
(i) Casual leave shall be admissible for a maximum period of twelve

days in a year.
(ii) Any holiday intervening during the, period of casual leave shall
not be counted for the purpose of the limit of twelve days.
(iii) Casual leave not utilized during any year shall stand lapsed at
the end of the year.
(iv) Casual leave shall not be combined with medical leave. If casual
leave is preceded or followed by medical leave, the entire leave taken
shall be treated either as medical or casual leave, provided that it shall
not be allowed to exceed the maximum period prescribed in respect
of medical or casual leave, as the case may be.
(v) Except in case of extreme urgency, applications for such leave

shall be made to the appropriate authority and sanction obtained
prior to availing of leave.
(b) Medical leave:
(i) Medical leave up to fifteen days for each year of training may be
granted to the apprentice who is unable to attend duty owing to
illness. The unused leave shall be allowed to accumulate up to a
maximum of forty days.
(ii) Any holiday intervening during the period of medical leave shall
be treated as medical leave and accounted for in the limits prescribed
under clause (i) above.
(iii) The employer may call upon the apprentice to produce a medical
certificate from a registered medical practitioner in support of his
131
medical leave. A Medical Certificate shall, however, be necessary if

the leave exceeds six days.
(iv) It shall be open to the employer to arrange a special medical

examination of an apprentice if he has reason to believe that the
apprentice is not really ill or the illness is not of such a nature as to
prevent attendance.
1[(v) A female apprentice with one surviving child may be granted

maternity leave for a period of 90 days from the date of its
commencement without payment of stipend and the apprenticeship
training period shall be extended accordingly. The monthly stipend
shall be paid to the apprentice during such extended period.]
(c) Extraordinary leaves:
Extraordinary leave up to a maximum of ten days or more in a year

may be granted to the apprentice, after he has exhausted the entire
casual and medical leave, if the employer is satisfied with the
genuineness of the grounds, on which the leave is applied for.
(2) In establishments where proper leave rules exist for workers, the
leave to apprentices shall be granted by the employers in accordance
with those rules provided that in the case of trade apprentices grant
of such leave shall be subject to the following conditions, namely: -
(a) That every apprentice engaged in an establishment which works

for five days in a week (with a total of 45 hours per week) shall put in
a minimum attendance of 200 days in a year out of which one sixth,
namely, 33 days shall be devoted to related instructions and 167 days
to practical training;
(b) That every apprentice engaged in an establishment which works

for 5.5 days or six days in a week shall put in a minimum attendance
of 240 days in a year, out of which one-sixth, namely 40 days, shall be
devoted to related instruments and 200 days to practical training;
132
(c) An apprentice who for any reason is not able to undergo training
for the period specified in clause (a) or clause (b), shall be given an
opportunity to make up for the shortfall in the following year and
shall be eligible to take the test conducted by the National Council-
(i) If he is engaged in an establishment referred to in clause (a) only if

he has completed the period of training and as put in a minimum
attendance of 600 days or 800 days accordingly as the period of
training is three years or four years;
(ii) If he is engaged in an establishment referred to in clause (b) only

if he has completed the period of training and has put in a minimum
attendance of 720 days or 900 days accordingly as the period of
training is three years or four years.
(3) If the trade apprentice is not able to put in the minimum period of
attendance specified in clause (c) of the proviso to sub-rule (2) during
the period of training for circumstances beyond his control and the
employer is satisfied with the grounds for shortfall in attendance and
certifies that the apprentice has otherwise completed the full
apprenticeship course, he shall be considered as having completed
the full period of training and shall be eligible to take the test
conducted by the National Council.
(4) If a trade apprentice is not able to put in the minimum period of

apprenticeship specified in clause (c) of the proviso to sub-rule (2)
during the period of training and has not completed the full
apprenticeship course, he shall not be considered as having
completed the full period of training and the employer shall, under
sub-rule (2) of rule 7, extend his period of training until he completes
the full apprenticeship course and the next test is held.
Ins. by G.S.R. 293 dated 10th July 1997 (w.e.f 19-7-1997).
133
Records and Returns:
(1) Establishments referred to in items (b) and (c) of sub-clause (1) of

clause (d) of section 2 of the Act shall submit returns as hereinafter
provided to the respective Regional Director.
(2) Establishments referred to in item (b) of sub-clause (2) of clause

(d) of section 2 of the Act submit returns as hereunder provided to
the respective State Apprenticeship Adviser.
(3) Within seven days from the date a trade apprentice joins an
establishment, the employer shall prepare the return in Form
Apprenticeship 4 in Schedule III in duplicate and shall submit one
return to the Regional Director or State Apprenticeship Adviser, as
the case may be, and the other to the Principal or Head of the Institute
where basic training or Related Instructions shall be imparted.
(4) As soon as trade apprentice joins the establishment, the employer

shall prepare an index card (Envelope) in Form Apprenticeship I in
Schedule III in duplicate and shall submit one of the cards to the
Regional Director or State Apprenticeship Adviser, as the case may
be, within a period of fifteen days of the date of registration of the
contract of apprenticeship and retain the other one with him.
(5) (a) Every employer shall maintain a record of Basic Training or

Practical Training and Related Instruction in Form Apprenticeship IA
in Schedule III. Information regarding Basic Training or Practical
Training shall be based on the syllabus approved by the Central
Apprenticeship council and operations actually performed by the
trade apprentice during the half year under review. Every employer
shall send a copy of this report to the Regional Director or the State
Apprenticeship Adviser, as the case may be, at the end of every half-
year, and the said report shall be kept inside Form Apprenticeship 1.
(b) In a case where the Basic Training is given to the Trade

apprentices at an institute set up by the Government, reports during
134
the period of such training, giving the required information shall be

furnished to the establishment by the Head of the Institute concerned
in Form Apprenticeship IA in duplicate.
(c) The details relating to “Trade Theory”, “Workshop Calculation

and Science”, “Engineering Drawing” and “Social Studies” shall be
entered periodically in Apprenticeship IA, in Schedule III by the
establishments on the basis of half-yearly report which is furnished
by the authorities imparting related instructions in Apprenticeship I
(Supplementary).
(6) At the end of each half-year every establishment shall in respect of

trade apprentices receiving training in the establishment submit a
report in the Form Apprenticeship-2 in Schedule III to the Regional
Director or the State Apprenticeship Adviser, as the case may be,
according to the table below along with the relevant half-yearly
report in Form Apprenticeship IA in Schedule III.
(7) (a) Every employer shall, during the months of November and
May, submit to the Regional Director or the State Apprenticeship
Adviser, as the case may be, the particulars of such trade apprentices
who satisfy the minimum conditions of eligibility to appear in the
ensuing trade test in March or September and the particulars so
submitted shall be in Form Apprenticeship 3 in Schedule III.
(b) Having scrutinized the eligibility of such trade apprentices, the

Regional Director or the State Apprenticeship Adviser, as the case
may be, shall inform the employer the programme of the trade test
and name of the trade-testing centre.
(c) After receiving the information under clause (b) the employer
shall furnish the progress report in Form Apprenticeship I and
Apprenticeship IA in Schedule III of the eligible trade apprentices to
the trade testing officer in advance and not later than seven days
before the commencement of the trade test.
135
(8) Every employer shall maintain a register of attendance of the trade

apprentices undergoing apprenticeship training to his establishment
and action taken for irregular and unauthorized absence shall be
recorded in the said register at the end of each month.
(9) On a Graduate or Technician or Technician (Vocational)

apprentice joining an establishment, the employer shall prepare
index cards in Form Apprenticeship 5 set out in Schedule III with
complete bio-data and retain one card with himself and forward
within ten days from the date of the engagement of the apprentice,
one card to each of the following authorities, namely: –
(i) The Central Apprenticeship Adviser;
(ii) The Director, Regional Board of Apprenticeship Training

concerned; and
(iii) In the case of Sandwich course student, the technical institution

concerned.
(10) Every employer shall maintain a record of the work done and the
studies undertaken by the Graduate, Technician and Technician
(Vocational) apprentices engaged in his establishment, for each
quarter and at the end of each quarter shall send a report in Form
Apprenticeship-6 set out in Schedule III to the Director, Regional
Board of Apprenticeship Training concerned.
(7) The employer shall allow leave to the apprentice as under:
(i) Casual leave for a maximum period of 12 days in a year. Any

holidays intervening during the period of casual leave shall not be
counted for the purpose of the limit of 12 days. Casual leave not used
during any year shall stand lapsed at the end of the year.
(ii) Medical leave up to 15 days for each year of training shall be

granted to the apprentice who is unable to attend duty owing to
illness. The unused leave may be allowed to accumulate upto a
136
maximum of 40 days. Any holidays intervening during the period of

medical leave shall be treated as medical leave. The employer may
call upon the apprentice to produce a medical certificate from a
registered medical practitioner, as defined in the Apprenticeship
Rules, 1991, in support of his medical leave. A medical certificate
shall, however, be necessary if the leave exceeds 6 days. It shall be
open to the employer to arrange a special medical examination of the
apprentice if he has reason to believe that the apprentice is not really
ill or the illness is not of such a nature as to prevent his attendance.
(iii) Casual leave shall not be combined with medical leave. If casual
leave is preceded or followed by medical leave, the entire leave taken
shall be treated as either medical or casual leave, provided that it shall
not be allowed to exceed the maximum period prescribed in respect
of medical or casual leave, as the case may be.
(iv) Extraordinary leave up to a maximum of 10 days or more in a

year [nay be granted to the apprentice after he has taken the entire
medical or casual leave, if the employer is satisfied with the
genuineness of the rounds on which the leave is applied for.
(v) (a) The apprentice engaged in an establishment which works for

five days in a week (with a total of 45 hours per week) shall put in a
minimum attendance of 200 days in a year on training, out of which
one sixth, namely, 3′ days, shall be devoted to related instructions and
167 days to practical training;
(b) The apprentice engaged in an establishment which works 5 1/2

days or 6 days in a week shall put in a minimum attendance of 240
days in a year on training, out of which one sixth, namely 40 days,
shall be devoted to related instructions and 200 days to practical
training.
(vi) The apprentice, who for any reason is not able to undergo training
for the period specified in sub-clause shall be given an opportunity to
137
make up for the shortfall in the following, year and shall be eligible
to take the test conducted by the National Council-
(a) Only if he has completed the period of training and has put in a
minimum attendance of 600 days of 800 days according as the period
of training is three years or four years, as the case may be, in an
establishment which works for 5 days in a week, or
(b) Only if he has completed the period of training and has put in a
minimum attendance of 720 days or 960 days according as the period
of training is three years or four years, as the case may be, in an
establishment which works for 5V2 days or 6 days in a week.
(vii) If the apprentice is not able to put in the minimum period of

attendance specified in sub-clause (v) during the period of training
for circumstances beyond his control and the employer is satisfied
with the grounds for shortfall in attendance and certifies that the
apprentice has otherwise completed the full apprenticeship course,
he shall be considered as having completed the full period of training
and shall be eligible to take the test conducted by the National
Council.
(viii) If the apprentice is not able to put in the minimum period of

attendance specified in sub-clause (vi) during the period of training
and has completed the full apprenticeship course, he shall not be
considered as having completed the full period of training and the
employer shall under sub-rule (2) of Rule 7 extend his period of
training unless he completes full apprenticeship course and the next
test is held.
(8) The employer shall allow to the apprentice such holidays as are
observed in the establishment.
(9) If personal injury is caused to an apprentice by accident arising

out of and in the course of his training as an apprentice, the employer
shall pay to the apprentice compensation in accordance with the
138
provisions of the Workmen, s Compensation Act, 1923, subject to the

modifications specified in the Schedule or the Apprentices Act, 1961.
Obligations of Trade Apprentice (both in case of Major and Minor

Trade Apprentices)
(Under Section 12 of Apprentices Act, 1961)
(1) The apprentice shall abide by the rules and regulations of the
establishment in all matters of conduct and discipline and carry out
all lawful orders of the employer and superiors in the establishment.
(2) The apprentice shall conduct himself as a trainee and not as a

worker, learn his trade conscientiously and diligently and endeavour
to qualify himself as a skilled Craftsman in his trade before the expiry
of the period of training. Save as provided in the Apprentices Act,
1961, provisions of any law with respect to labour will not be
applicable to him.
(3) The apprentice shall attend practical (basic and shop floor)
training and related instructions classes regularly.
(4) The apprentice shall appear for periodical tests that may be
conducted by the employer or other authorities concerned by the
National Council for Vocational Training for award of a certificate of
proficiency in the trade.
(5) In the event of premature termination of contract of

apprenticeship for failure on the part of the apprentice to carry out
the terms and conditions of contract, the surety or the guardian may
be bound to pay the employer such amount as may be determined by
the Central/State Apprenticeship Adviser as and towards the cost of
training in accordance with rates as specified under Rule 8 of the
Apprenticeship Rules, 1991.
139
(6) Except in case of extreme urgency the apprentice shall submit

applications for all leave except medical leave to the appropriate
authority and obtain sanction before the leave is taken
(7) The apprentice, his/her guardian (in case of minor) declares that
no other contract of apprenticeship subsists already between him and
any other employer (in respect of minor apprentice, by the guardian)
and undertakes that he shall not enter into any other contract of
apprenticeship with any other employer (in respect of minor
apprentice, by the guardian) before the expiry or termination of the
contract of apprenticeship.
(8) The apprentice or his/her guardian (in case of minor) shall not
enter into any other contract of apprenticeship with any other
employer in respect of the apprentices mentioned in the first recital
before the expiry or termination of the contract of apprenticeship.
(9) The first six months of the period of apprenticeship training shall
be treated as period on probation. Either party may make an
application to the Central/State Apprenticeship Adviser for the
earlier termination of contract and when such an application is made,
the party making application shall send by post a copy thereof to the
other party to the contract. The Central/State Apprenticeship
Adviser after considering the contents of the application and
objections, if any, filed by the other party, may 6terininate the
contract, if he is satisfied that the parties to the contract, if any, of
them have or has failed to carry out the terms and conditions of the
contract and that it is desirable in the interests of the parties or any of
them to terminate the same:
Provided that the amount as stated; in paras I (6) and II (5) of this
Schedule shall become payable by one party to the other accordingly
as the failure is on the part of the employer or the apprentice:
Provided further that no compensation shall be payable by the

employer to the guardian of the apprentice if the employer makes an
140
application to the Central/State Apprenticeship Adviser during the

period the apprentice is on probation for the termination of the
contract on the ground that the apprentice on the trade in which he
has been engaged and that his guardian has refused to allow him to
undergo apprenticeship training in another designated trade for
which he is found suitable by the employer and if the Central/State
Apprenticeship Adviser, after considering the contents of the
application of the employer and the objections, if any, filed by the
other party is satisfied that it is desirable in the interests of the parties
or any of them to terminate the contract.
(10) It shall not be obligatory on the part of the employer to offer any
employment to the apprentice on completion or period of his
apprenticeship training in his establishment, nor shall it be obligatory
on the part of the apprentice to accept an employment under the
employer.
(11) Any disagreement or dispute between the employer and the

guardian of the apprentice arising out of the contract shall be referred
to the Central/State Apprenticeship Adviser for decision and any
person aggrieved by the decision of the Central/State Apprenticeship
Adviser, may, within 30 days from the date of communication to him
of such decision, prefer an appeal against the decision to the
Central/State Apprenticeship Council and such appeal shall be heard
and determined by the Committee of that Council appointed for the
purpose. The decision of such committee shall be final.
Schedule VI
(See rule 6)
Terms and conditions of the contract of apprenticeship for

Graduate,
Technician and Technician (Vocational) Apprentices
141
The period of training shall be one year (in the case of Sandwich
students, the period of training shall be as stipulated in curriculum).
It shall not be obligatory on the part of the employer to offer any

employment to the apprentice on completion of period of
apprenticeship training in his establishment nor shall it be obligatory
on the part of the apprentice to accept as employment under the
employer.
Note. -If, however, there is a condition in the contract of

Apprenticeship that the apprentice shall, after the successful
completion of Training, serve the employer, the employer shall, on
such completion, be bound to offer suitable employment to the
apprentice and the apprentice shall be bound to serve the employer
in that capacity for such period and for such remuneration as may be
specified in the contract subject to the approval of the Central
Apprenticeship Adviser.
(3) Every apprentice undergoing apprenticeship training in an

establishment shall be a trainee and not a worker and as such the
provisions of any law with respect to labour shall not apply to or in
relation to such apprentice.
(4) (i) The apprentice shall abide by the rules and regulations of the
establishment in all matters of conduct and discipline and safety and
carry out all lawful orders of the employer and superiors in the
establishment.
(ii) The apprentice shall learn his subject field conscientiously and
diligently and attend to practical and instructional classes regularly.
(iii) The apprentice shall maintain a record of his work during the
period of his apprenticeship training in a proforma approved by the
142
(iv) Where the contract of apprenticeship is terminated for failure on

the part of the apprentice to carry out the terms of contract, the
apprentice shall refund to the employer as cost of training such
amount as may be determined by the Apprenticeship Adviser. In
such event, the apprentice shall not be entitled to enter into another
contract of Apprenticeship under the Act with any other employer.
(v) The contract of apprenticeship can be terminated without

compensation payable to the apprentice-
(a) If he/she secures gainful employment (on production of copy of

the appointment order); and
(b) If he/she is unable to continue training on medical grounds (on

production of a certificate to this effect from a Medical Officer not
below the rank of Civil Surgeon).
(vi) For breach of contract by the employer, the employer shall pay
compensation to the apprentice in accordance with rates specified
under rule 8 of these Rules.
(vii) Continuance of payment of stipend shall depend on satisfactory

performance of the apprentice during the training period.
(5) (i) The employer shall make suitable arrangement in his

establishment for imparting a course of apprenticeship training to the
apprentice in accordance with the provisions of the Act and Rules
made thereunder and with the approval of the respective Regional
Central Apprenticeship Adviser.
(ii) Every employer is required to formulate a “Training Programme”

for the training of Graduate/ Technician/Technician (Vocational)
Apprentices and get if approved by the respective Regional Central
143
(iii) The employer will arrange for a suitable person to be placed in

charge of training of apprentices as laid down under the Act and the
rules made thereunder.
(6) (i) A Graduate, Technician and Technician (Vocational) apprentice

shall work according to the normal hours of work of the department
in the establishment to which he/she is attached for training. They
will be eligible for 12 days of Casual Leave and 15 days of Medical
Leave with payment of stipend. Extraordinary Leave up to 10 days
with or without payment of stipend may be granted at the discretion
of the establishment.
(ii) The stipend for a particular month shall be paid before the 10th
day of the following month.
144
The Child Labour Prohibition and Regulation Act 1986
Chapter - 14
The Child Labour Prohibition and

Regulation Act 1986

the Child Labour Prohibition and Regulation Act 1986, and other
Preliminary matters, and the same is carried and discussed in
comparison with prohibition of employment of children in certain
occupations and processes, and regulation of conditions of work of
children are discussed upon and other miscellaneous issues are
discussed as part of the lesson.
Introduction:
Employment of children below 14 and 15 years in certain prohibited.

employments have been prohibited by various Acts but there is no
procedure laid down in any law for deciding in which employments,
occupations or processes the employment of children should be
banned. There is also no law to regulate the working conditions of
children in most of the employments where they are not prohibited
from working and are working under exploitative conditions.
Accordingly, it was decided to enact a comprehensive law on the
subject. To achieve this objective, the Child Labour (Prohibition and
Regulation) Bill was introduced in the Parliament.
145
Objects and Reasons:
There are a number of Acts which prohibit the employment of

children below 14 years and 15 years in certain specified
employments. However, there is no procedure laid down in any law
for deciding in which employments, occupations or processes the
employment of children should be banned. There is also no law to
regulate the working conditions of children in most of the
employments where they are not prohibited from working and are
working under exploitative conditions.
2. This Bill intends to—

(i) ban the employment of children, i., those who have not
completed their fourteenth year, in specified occupations and
processes,
Gi) lay down a procedure to decide modifications to the Schedule of

banned occupations or processes;
(iii) regulate the conditions of work of children in employments

where they are not prohibited from working;
(iv) lay down enhanced penalties for employment of children in

violation of the provisions of this Act, and other Acts which
forbid the employment of children;
(v) to obtain uniformity in the definition of “child” in the related

laws.
3. The Bill seeks to achieve the above objects.
Act 61 of 1986
The Child Labour (Prohibition and Regulation) Bill, 1986 having been
passed by both the Houses of Parliament received the assent of the
President on 23rd December, 1986. It came on the Statute Book as THE
CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986
(61 of 1986) (Came into force on 23-12-1986 and 26-5-1993).
146
List of amending act the repealing and amending act, 2001 (30 of
2001) (w.e.f. 3-9-2001).
The child labour (prohibition and regulation) act, 1986
(61 of 1986)
[23rd December,1986 | An Act to prohibit the engagement of children

in certain employments and to regulate the conditions of work of
children in certain other employments. Br it enacted by Parliament in
the Thirty-seventh Year of the Republic of India as follows: —
Part i preliminary
1. Short title, extent and commencement. — (1) This Act may be

called the Child Labour (Prohibition and Regulation) Act, 1986.
(2) It extends to the whole of India.
(3) The provisions of this Act, other than Part III, shall came into
force at once, and Part III shall come into force on such date! as
the Central Government may, by notification in the Official
Gazette, appoint, and different dates may be appointed for
different States and for different classes of establishments.
2. Definitions. —In this Act, unless the context otherwise requires,

—
(i) “appropriate Government” means, in relation to an
establishment under the control of the Central Government or a
railway administration or a major port or a mine or oilfield, the
Central Government, and in all other cases, the State
Government;
(ii) “child” means a person who has not completed his fourteenth
year of age;
(iii) “day” means a period of twenty-four hours beginning at mid-

night;
147
(iv) “establishment” includes a shop, commercial establishment,

workshop, farm, residential hotel, restaurant, eating house,
theatre or other place of public amusement or entertainment;
(v) “family”, in relation to an occupier, means the individual, the

wife or husband, as the case may be, of such individual, and their
children, brother or sister of such individual;
(vi) “occupier”, in relation to an establishment or a workshop, means

the person who has the ultimate control over the affairs of the
establishment or workshop;
(vii) “port authority” means any authority administering a port;
(viii) “prescribed” means prescribed by rules made under section 18;
(ix) “week” means a period of seven days beginning at midnight on

Saturday night or such other night as may be approved in
writing for a particular area by the Inspector;
(x) “workshop” means any premises (including the precincts

thereof) wherein any industrial process is carried on, but does
not include any premises to which the provisions of section 67
of the Factories Act, 1948 (63 of 1948), for the time being, apply.
1. Part III came into force on 26th May, 1993, vide 5.0. 333(E), dated
26th May, 1993. 2
Sec. 6] The Child Labour (Prohibition and Regulation} Act, 1986 3
PART II
Prohibition of employment of children in certain occupations and

processes
3. Prohibition of employment of children in certain occupations

and processes. —No child shall be employed or permitted to
work in any of the occupations set forth in Part A of the Schedule
148
or in any workshop wherein any of the processes set forth in Part

B of the Schedule is carried on:
Provided that nothing in this section shall apply to any workshop

wherein any process is carried on by the occupier with the aid of his
family or in any school established by, or receiving assistance or
recognition from, Government.
Comments
(i) Children can be employed in the process of packing but packing

should be done in an area away from the place of manufacture
to avoid exposure for accident; M.C. Melita
v. State of Tamil Nadu, AIR 1991 SC 417.
(ii) The prohibition of employment of children is not applicable to
any workshop wherein any process is carried on by the occupier
with the aid of his family, or to any school established by, or
receiving assistance or recognition from, Government.
4. Power to amend the Schedule. —The Central Government, after
giving by notification in the Official Gazette, not less than three
months’ notice of its intention so to do, may, by like notification,
add any occupation or process to the Schedule and thereupon
the Schedule shall be deemed to have been amended
accordingly.
Ss Child Labour Technical Advisory Committee—(1) The Central

Government may, by notification in the Official Gazette, constitute an
advisory committee to be called the Child Labour Technical Advisory
Committee (hereafter in this section referred to as the Committee} to
advise the Central Government for the purpose of addition of
occupations and processes to the Schedule.
(2) The Committee shall consist of a Chairman and such other

members not exceeding ten, as may be appointed by the Central
Government.
149
(3) the Committee shall meet as often as it may consider necessary

and shall have power to regulate its own procedure.
(4) The Committee may, if it deems it necessary so to do, constitute

one or more sub-committees and may appoint to any such sub-
committee, whether generally or for the consideration of any
particular matter, any person who is not a member of the
Committee.
(5) The term of office of, the manner of filling casual vacancies in the
office of, and the allowance, if any, payable to, the Chairman and
other members of the Committee, and the conditions and
restrictions subject to which the Committee may appoint any
person who is not a member of the Committee as a member of
any of its sub-committees shall be such as may be prescribed.
Part iii Regulation of conditions of work of children
6. Application of Part. —The provisions of this Part shall apply to

an establishment or a class of establishments in which none of
the occupations or processes referred to in section 3 is carried on.
4 The Child Labour (Prohibition and Regulation} Act, 1986 [Sec. 6
Comments
This section regulates the working conditions of the children in

employments where they are not prohibited from working by section
3 of this Act.
7. Hours and period of work. — (1) No child shall be required or

permitted for work in any establishment in excess of such
number of hours as may be prescribed for such establishment or
class of establishments.
(2) The period of work on each day shall be so fixed that no period
shall exceed three hours and that no child shall work for more
150
than three hours before he has had an interval for rest for at least
one hour.
(3) The period of work of a child shall be so arranged that inclusive

of his interval for rest, under sub-section (2), it shall not be
spread over more than six hours, including the time spent in
waiting for work on any day.
(4) No child shall be permitted or required to work between 7 p.m.

and 8 am.
(5) No child shall be required or permitted to work overtime.
(6) No child shall be required or permitted to work in any

establishment on any day on which he has already been working
in another establishment.
Comments
This section stipulates that no child shall work for more than 3 hours
before he has had an interval for rest for at least one hour. The double
employment of a child is banned.
8. Weekly holidays. ——Every child employed in an establishment

shalt be allowed in each week, a holiday of one whole day, which
day shall be specified by the occupier in a notice permanently
exhibited in a conspicuous place in the establishment and the
day so specified shall not be altered by the occupier more than
once in three months.
Comments
The child employed in an establishment is entitled for a holiday of

one whole day in each week.
9. Notice to Inspector. — (1} Every occupier in relation to an

establishment in which a child was employed or permitted to
work immediately before the date of commencement of this Act
151
in relation to such establishment shall, within a period of thirty

days from such commencement, send to the Inspector within
whose local limits the establishment is situated, a written notice
containing the following particulars, namely:—
(a) the name and situation of the establishment;
(b) the name of the person in actual management of the

establishment:
(c) the address to which communications relating to the

establishment should be sent; and
(d) the nature of the occupation or process carried on in the

establishment.
(2) Every occupier, in relation to an establishment, who employs, or

permits to work, any child after the date of commencement of
this Act in relation to such establishment, shall, within a period
of thirty days from the date of such employment, send to the
Inspector within whose local limits the establishment
Sec. 13] The Child Labour (Prohibition and Regulation) Act, 1986 5
is situated, a written notice containing the particulars as are

mentioned in sub- section {1}.
Explanation —For the purposes of sub-sections (1) and (), “date of

commencement of this Act, in relation for an establishment” means
the dale of bringing into force of this Act in relation to such
establishment.
(3) Nothing in sections 7, 8 and 9 shall apply to any establishment

wherein any process is carried on by the occupier with the aid of
his family or to any school established by, or receiving assistance
or recognition from, Government.
152
10. Disputes as to age. —If any question arises between an Inspector

and an occupier as to the age of any child who is employed or is
permitted to work by him in an establishment, the question
shall, in the absence of a certificate as to the age of such child
granted by the prescribed medical authority, be referred by the
Inspector for decision to the prescribed medical authority.
Maintenance of register—There shall be maintained by every

occupier 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—
(a) the name and date of birth of every child so employed or

permitted to work;
(b) hours and periods of work of any such child and the intervals of
rest to which he is entitled;
(c) the nature of work of any such child; and
(d) such other particulars as may be prescribed.
12. Display of notice containing abstract of sections 3 and 14. —

Every railway administration, every port authority and every
occupier shall cause to be displayed in a conspicuous and
accessible place at every station on its railway or within the
limits of a port or at the place of work, as the case may be, a
notice in the local language and in the English language
containing an abstract of sections 3 and 14.
13. Health and safety— (1) The appropriate Government may, by

notification in the Official Gazette, make rules for the ‘health and
safety of the children employed or permitted to work in any
establishment or class of establishments.
153
(2) Without prejudice to the generality of the foregoing provisions,

the said rules may provide for all or any of the following matters,
namely: —
(a) cleanliness in the place of work and its freedom from nuisance;
(b) disposal of wastes and effluents;
(c) ventilation and temperature;
(d) dust and fume;
(e) artificial humidification;
(f) lighting;
(g) drinking water;
(h) latrine and urinals;
(i) -spittoons;
6 The Child Labour (Prohibition and Regulation) Act 1986 [Sec. 13
G} fencing of machinery; ({k} work at or near machinery in motion;

(1) employment of children on dangerous machines;
(m) instructions, training and supervision in relation to employment

of children on dangerous machines;
(n) device for cutting off power;

(o) self-acting machines; (p} easing of new machinery;
(p) floor, stairs and means of access; {r) pits, sumps, openings in
floors, etc.;
(q) excessive weights;
(r) protection of eyes; (u} explosive or inflammable dust, gas, etc.;
(s) precautions in case of fire;
(t) maintenance of buildings; and
(u) safety of buildings and machinery.
154
Comments
The appropriate Government is empowered to make rules in such

matters as cleanliness, disposal of wastes, dust, lighting, precaution
against fire, protection of eyes, spittoons and ventilations, etc., in any
establishment for the health and safety of the children employed or
permitted to work.
Part iv miscellaneous
14. Penalties. — (1} Whoever employs any child or permits any child
to work in contravention of the provisions of section 3 shall be
punishable with imprisonment for a term which shall not be less
than three months but which may extend to one year or with fine
which shall not be less than ten thousand rupees but which may
extend to twenty thousand rupees or with both.
(2) Whoever, having been convicted of an offence under section 3,
commits a like offence afterwards, he shall be punishable with
imprisonment for a term which shall not be less than six months
but which may extend to two years.
(3) Whoever—
(a) fails to give notice as required by section 9; or
(b} fails to maintain a register as required by section 11 or makes any

false entry in any such register; or
(c) fails to display a notice containing an abstract of section 3 and

this section as required by section 12; or
(d) fails to comply with or contravenes any other provisions of this

Act or the rules made thereunder, shalt be punishable with
simple imprisonment which may extend to one month or with
fine which may extend to ten thousand rupees or with both.
155
15. Modified application of certain laws in relation to penalties. —

(1) Where any person is found guilty and convicted of
contravention of any of the Sec. 16]
Provisions below: {a) (b) (c) (a)
The Child Labour (Prohibition and Regulation) Act, 1986 7
mentioned in sub-section (2), he shall be liable to penalties as

provided in sub-sections (1) and (2) of section 14 of this Act and not
under the Acts in which those provisions are contained,
(2) The provisions referred to in sub-section (1) are the provisions

mentioned
section 67 of the Factories Act, 1948 (63 of 1948);
section 40 of the Mines Act, 1952 (35 of 1952);
section 109 of the Merchant Shipping Act, 1958 (44 of 1958); and
section 21 of the Motor Transport Workers Act, 1961 (27 of 1961).

COMMENTS
Sections of the above quoted Acts are reproduced below: — fi) Section
67 of the Factories Act, 1948:
No child who has not completed his fourteenth year shall be required
or allowed to work in any factory.
; Gi) Section 40 of the Mines Act, 1952:
After the commencement of the Mines (Amendment) Act, 1983, no

person below 18 years of age shall! be allowed to work in any mine
or part thereof. Notwithstanding anything contained in sub-section
(1), apprentices and other trainees, not below sixteen years of age,
may be allowed to work, under proper supervision, in a mine or part
thereof by the manager:
156
Provided that in case of trainees, at her than apprentices, prior

approval of the Chief Inspector or an Inspector shall be obtainment
before they are allowed to work.
Explanation. —In this section and in section 43, “apprentice” means

an apprentice as defined in clause (a) of section 2 of the Apprentices
Act, 1961 (52 of 1961).
Clause (a) of section 2 of the Apprentices Act, 1961 (52 of 1961) defines
“apprentice” as:
Apprentice means a person who is undergoing apprenticeship

training in purstiance of 2 contracts of apprenticeship.
(iii) Section 109 of the Merchant Shipping Act, 1958:
No person under fifteen years of age shall! be engaged or carried Lo

sea to work in any capacity in any ship, except! — (a) in a school ship,
or training ship, in accordance with the prescribed conditions; or (b)
in a ship in which all persons employed are members of one family;
or (c) in a home-trade ship of less than two hundred tons gross; or
(d) where such person is lo be employed on nominal wages and will

be in the charge of his father or other adult near male relative.
(iv) Section 21 of the Motor Transport Workers Act, 1961:
No child shalt be required or allowed to work in any capacity in any

motor transport undertaking.
16. Procedure relating to offences— (1) Any person, police officer or

Inspector may file a complaint of the commission of an offence
under this Act in any court of competent jurisdiction.
& The Chiid Labour {Prohibition and Regulation} Act, 1986 {Sec. 16
(2) Every certificate as to the age of a child which has been granted
by a prescribed medical authority shall, for the purposes of this
157
Act, be conclusive evidence as to the age of the child to whom it

relates.
(3) No court inferior to that of a Metropolitan Magistrate or a

Magistrate of the first class shall try any offence under this Act.
17. Appointment of Inspectors. —The appropriate Government

may appoint Inspectors for the purposes of securing compliance
with the provisions of this Act and any Inspector so appointed
shall be deemed to be a public servant within the meaning of the
Indian Penal Code, 1860 (45 of 1860}.
Comment
The Inspectors appointed under section 17 would see that for each
child employed in violation of the provisions of the Act, the
concerned employer pays Rs. 20,000 which sums could be deposited
in a fund to be known as Child Labour Rehabilitation-cum- Welfare
Fund; M.C. Metta v. State of Tamil Nadu, AIR 1997 SC 699.
18. Power to make rules— (1} The appropriate Government may, by

notification in the Official Gazette and subject to the condition of
previous publication, make rules for carrying into effect the
provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing
power, such rules may provide for all or any of the following matters,
namely: —
(a) the term of office of, the manner of filling casual vacancies of,
and the allowances payable to, the Chairman and members of
the Child labour technical advisory committee and the
conditions and restrictions subject to which a non-member may
be appointed to a sub-committee under sub-section (5) of section
5;
158
(b) number of hours for which a child may be required or permitted

to work under sub-section (1} of section 7;
(c) grant of certificates, of age in respect of young persons in

employment or seeking employment, the medical authorities which
may issue such certificate, the form of such certificate, the charges
which may be made thereunder and the manner in which such
certificate may be issued:
Provided that no charge shall be made for the issue of any such
certificate if the application is accompanied by evidence of age
deemed satisfactory by the authority concerned;
(a) the other particulars which a register maintained under section

11 should contain.
19. Rules and notifications to be laid before Parliament or State
legislature.—(1) Every rule made under this Act by the Central
Government and every notification issued under section 4, shall
be laid as soon as may be after it is made or issued, before each
House of Parliament, while it is in session for a total period of
thirty days which may be comprised in one session or in two or
more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the
rule or notification or both Houses agree that the rule or
notification should not be made or issued, the rule or notification
shall thereafter have effect only in such modified form or be of
no effect, as the case i 5 i
Sec. 24] The Child Labour (Prohibition and Regulation) Act, 1986 9
maybe; so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done
under that rule or notification.
159
(2) Every rule made by a State Government under this Act shall be
laid as soon as may be after it is made, before the legislature of
that State.
20. Certain other provisions of law not barred. —-Subject to the
provisions contained in section 15, the provisions of this Act and
the rules made thereunder shall be in addition to, and not in
derogation of, the provisions of the Factories Act, 1948 (63 of
1948), the Plantations Labour Act, 1951 (69 of 1951) and the
Mines Act, 1952 (35 of 1952).
21. Power to remove difficulties. —(1) If any difficulty arises in

giving effect to the provisions of this Act, the Central
Government may, by order published in the Official Gazette,
make such provisions not inconsistent with the provisions of this
Act as appear to it to be necessary or expedient for removal of
the difficulty:
Provided that no such order shall be made after the expiry of a period
of three years from the date on which this Act receives the assent of
the President.
{2} Every order made under this section shall, as soon as may be after
it is made, be laid before the Houses of Parliament.
22. Repeal and savings. — ({1) The Employment of Children Act,

1938 (26 of 1938), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken
or purported to have been done or taken under the Act so
repealed shall, in so far as it is not inconsistent with the
provisions of this Act, be deemed to have been done or taken
under the corresponding provisions of this Act.
*23. Amendment of Act 11 of 1948. —In section 2 of the Minimum

Wages Act, 1948, —
160
(i) for clause (a), the following clauses shall be substituted, namely:
— ‘(a} “adolescent” means a person who has completed his
fourteenth year of age but has not completed his eighteenth year;
(aa) “adult” means a person who has completed his eighteenth
year of age;
(ii) after clause (b), the following clause shall be inserted, namely: —
‘(bb} “child” means a person who has not completed his
fourteenth year of age’. *24. Amendment of Act 69 of 1951. —In
the Plantations Labour Act, 1951, — fa} in section 2, in clauses (a)
and (c), for the word “fifteenth”, the word “fourteenth” shall be
substituted;
(b) section 24 shall be omitted;
(c) in section 26, in the opening portion, the words “who has
completed his twelfth year” shall be omitted.
Sections 23 to 26 have been repealed by section 2 and First Schedule

of the Repealing and Amending Act, 2001 (30 of 2001} (w.e.f 3-9-2001}.
The repeal by this Act shall not affect any other enactment in which
the repealed enactment has been applied, incorporated or referred to.
||
10 The Child Labour (Prohibition and Regulation) Act, 1986 [Sec. 25
*25. Amendment of Act 44 of 1958. —In the Merchant Shipping Act,

1958, in section 109, for the ward “fifteen”, the word “fourteen” shall
be substituted.
*26, Amendment of Act 27 of 1961. —In the Motor Transport Workers

Act, 1961, in section 2, in clauses (a) and (c), for the word “fifteenth”,
the word “fourteenth” shall be substituted.
The Schedule (See section 3) PART A OCCUPATIONS an occupation

connected with—
(1) Transport of passengers, goods or mails by railway;
161
(2) Cinder picking, clearing of an ash pit or -building operation in

the railway premises;
(3) Work in a catering establishment at a railway station, involving

the government of a vendor or any other employee of the
establishment from one platform to another or into or out of a
moving train;
(4) Work relating to the construction of a railway station or with any

other work where such work is done in close proximity to or
between the railway lines;
(5) A port authority within the limits of any port;
'{(6) Work relating to selling of crackers and fireworks in shops with

temporary licenses;]) Abattoirs/slaughter Houses;]
31(8) Automobile workshop and garages;) Foundries;
(10) Handling of toxic or inflammable substances or explosives;
(11) Handloom and power loom industry;
(12) Mines (underground and underwater) and collieries;
(13) Plastic units and fiberglass workshops;]
[d4) Employment of children as domestic workers or servants: (15)

Employment of children in dhabas {read side eateries), restaurants,
hotels, motels, tea shops, resorts, spas or at her recreational centres;]
(16) Diving;] S117) Circus;] (18) Caring of Elephants.]
Part B Processes (1} Bidi-making; (2) Carpet-weaving including

preparatory and incidental process thereof;} (3) Cement manufacture,
including bagging of cement; (4) Cloth printing, dyeing and weaving
including processes, preparatory and incidental thereto;]
• Sections 23 to 26 have been repealed by section 2 and First

Schedule of the Repealing and Amending Act, 2001 (30 of 2001)
162
Gwv.c.f£ 3-9-2001}. The repeal by this Act shall not affect any
other enactment in which the repealed enactment has been
applied, incorporated or referred to.
Ins. by 5.0. 404(E), dated 5th June, 1989.
Ins. by 8.0. 263(E}, dated 29th March, 1994,
Added by 5.0, 36(E), dated 27th January, 1999.
Manufacturing processes having exposure to lead such as primary

and secondary smelting, welding and cutting of lead-painted metal
constructions, welding of galvanized or zinc silicate, polyvinyl
chloride, mixing (by hand} of crystal glass mass, sanding or scrapping
of lead paint, burning of lead in enameling workshops, lead mining,
plumbing, cable making, wire patenting, lead casting, type founding
in printing shops. Store type setting, assembling of cars, shot making
and lead glass blowing;
Manufacture of cement pipes, cement products and other related

work;
Manufacturing of glass, glassware including bangles, fluorescent

tubes, bulbs and other similar glass products;
Manufacture of dyes and dye stuff; Manufacturing or handling of

pesticides and insecticides;
Subs. by 5.0. 397(E}, dated 10th May, 2001. 2. Ins. by 5.0. 404(E), dated
5th June, 1989.
163
The Cine Workers and Cinema Theatre Workers (Regulation of Employment)
Rules: 1984
Chapter - 15
The Cine Workers and Cinema Theatre Workers

(Regulation of Employment) Rules: 1984
Introduction and Learning Assistance: This chapter focuses on The

Cine workers and Cinema Theatre worker’s (Regulation of
employment Rules 1984). It explains the chapter in detail with
Preliminary details with the Form of agreement under Section 3,
the Procedure for reference of disputes to a Conciliation Officer or
a Tribunal, the Powers, procedures and duties of the Conciliation
Officer and the Tribunals and also argues on the Form (A) An
Agreement between Film Producer and Cine Worker.
The cine workers and cinema theatre workers (regulation

of employment) rules: 1984
Chapter I
Preliminary
1. Short title and commencement. - (1) These rules may

be called the Cine- Workers and Cinema Theatre Workers
(Regulation of Employment) Rules, 1984.
(2) They shall come into force on 1st day of October, 1984.
2. Definitions. --In these rules, unless the context

otherwise requires: -
(1) ‘Act’ means the Cine-Workers and Cinema Theatre Workers
(Regulation of Employment) Act, 1981);
164
Rules: 1984
(2) ‘tribunal’ means a cine-workers tribunal constituted under
Section 7 of the Act;
(3) ‘Forms’ means a Form appended to these rules;
(4) ‘section’ means a section of the Act;
(5) ‘leave’ means earned leave, medical leave, causal leave,
maternity leave;
(6) ‘leave not due’ means leave which is not due to the cine-worker
but which may be granted to him in anticipation of it being
earned subsequently;
(7) ‘quarantine leave’ means leave of absence from duty by reason
of the presence of an infectious disease in the family or house-
hold of a cine- worker;
(8) ‘study leave’ means leave granted to a cine-worker to enable
him to undergo any special course of training which may be of
use to him in his career.
Chapter II
3. From of agreement under Section 3. --Agreement as

envisaged in Section 3 of the Act shall be as in Form ‘A’.
Chapter III
Procedure for reference of disputes to a Conciliation Officer or a

Tribunal
4. Applications. --An application under Section 4 or

Section 7 for the reference of a dispute to a conciliation officer or a
tribunal shall be made in Form ‘B’ and shall be delivered
personally or forwarded by registered post to the Secretary to the
Government of India in the Ministry of Labour in triplicate. The
application shall be accompanied by a statement setting forth the
following information:
165
Rules: 1984
(a) Name of the parties to the dispute;
(b) the specific matters in dispute;
(c) the total number of cine-workers employed in the
establishment affected;
(d) and estimate of the number of cine-workers affected or
likely to be affected by the dispute; and
(e) The efforts made by the parties themselves to adjust the
dispute.
5. Attestation of Application. --The application and the
statement accompanying it shall be signed-
(a) in the case of a producer, by the producer himself;
(b) in the case of cine-workers, either by the president and
secretary of a trade union of the cine-workers or by five
representatives of the cine-workers duly authorized in this
behalf at a meeting of the cine-workers held for the purpose;
(c) in the case of an individual cine-worker, by the cine-worker
himself or by any officer of the trade union of which he is a
member or by another cine- worker in the same
establishment duly authorized by him in this behalf
provided that such cine-worker is not a member of a
different trade union.
Chapter IV
Powers, procedures and duties of the Conciliation Officer and

the Tribunals
6. Conciliation Officers. - (1) The conciliation officer on

receipt of notice of the strike or lockout, shall forthwith arrange to
interview both the producer and the cine- workers concerned with
the dispute at such place and time as he may deem fit and shall
endeavor to bring about a settlement of the dispute in question.
166
Rules: 1984
(2) Where the conciliation Officer receives any information about
an existing or apprehended dispute and he considers it necessary
to intervene in the dispute, he shall give formal information in
writing to the parties concerned declaring his intention to
commence conciliation proceedings with effect from such date as
may be specified therein.
7. Parties to submit statement. --The producers or the

party representing cine- workers or in the case of the individual
cine-worker, the cine-worker himself involved in a dispute, shall
forward a statement setting forth with the specific matter in the
dispute to the conciliation officer concerned, whenever his
intervention in the dispute is required.
8. The conciliation officer for resolving the dispute may
hold a meeting of the representatives of both parties jointly or of
each party separately.
9. The conciliation officer shall conduct proceeding
expeditiously and, in such manner, as he may deem fit.
10. Proceeding before the tribunal.-- (1) Where the Central
Government refers any dispute for adjudication to a tribunal within two
weeks of the date of receipt of the order of reference, the party representing
workmen or in the case of individual workman, the workman himself and
the producer involved in the dispute shall file with the tribunal a statement
of demands relating to the issues as are included in the order of reference
and shall also forward a copy of such statement to each one of the opposite
parties involved in the said dispute ;
Provided that where the tribunal considers it necessary it may,
(a) extend the time limit for filing of such statement;

(b) reduce the time limit for filing of such statement to one week in
emergent cases for reasons to be recorded in writing;
(c) where both the parties agree, reduce the time limit for filing of
such statement as per agreement; where both the parties agree,
dispense with the requirement of filing such statement altogether;
167
Rules: 1984
(d) allow at any stage of proceeding; amendments to such
statement to the extent as maybe necessary for the purpose of
determining the real issues included in the order of reference.
(2) Within two weeks of the receipt of the statement under
sub-rule (1), the opposite party shall file its rejoinder with the
tribunal and simultaneously forward a copy thereof to the other
party;
Provided that such rejoinder shall relate only to such of the

issues as are included in the order of reference:
Provided further that where the tribunal considers it necessary it

may,
(a) extend the time limit for filing of such rejoinder;

(b) reduce the time limit for filing of such rejoinder to one week in
emergent cases for reasons to be recorded in writing;
(c) where both the parties agree, reduce the time limit for filing of
such rejoinder as per agreement;
(d) where both the parties agree; dispenses with the requirement
of filing such rejoinder altogether;
(e) allow at any stage of the proceeding’s amendments to such
rejoinder to the extent as may be necessary for the purpose of
determining the real issues included in the order of reference.
(3) The tribunal shall ordinarily fix the date for the first
hearing of the dispute within 6 weeks of the date on which it was
referred for adjudication;
Provided that the tribunal may, for reasons to be recorded in
writing, fix a later date for the first hearing of the dispute.
(4) The hearing shall ordinarily be continued from day to

day and arguments shall follow immediately after the closing of
evidence.
(5) The tribunal shall ordinarily not grant any
168
Rules: 1984
adjournment for a period exceeding a week at a time, not more
than three adjournments in all at the instance of any one of the
parties to the dispute:
Provided that the tribunal for reasons to be recorded in
writing grant an adjournment exceeding a week or more than 3
adjournments at the instance of any on the parties to the
dispute:
Provided further that the producer should deposit the

disputed amount with the Tribunal pending finalization of the
dispute.
(6) The tribunal shall make a memorandum of the

substance of evidence of each witness:
Provided that the tribunal may follow the procedure laid down
in Rule 5 of Order XVIII of the first Schedule to the Code of Civil
Procedure, 1908 (5 of 1908), if it considers necessary so to do in
view to the nature of the particular dispute pending before it.
11. Place and time of hearing. --Subject to the provisions

contained in Rules 6 and 7, the sittings of the Conciliation Officer
and the tribunal shall be held at such times and places as the
presiding officer may fix and Conciliation Officer or the presiding
officer as the case may be, shall inform the parties of the same in
such manner as he thinks fit.
12. Evidence. --The tribunal may accept, admit or call for
evidence at any stage of the proceedings before it and in such
manner as it may think fit.
13. A Tribunal may grant to any party to any proceedings
before it, such interim or other reliefs (whether subject to any
conditions or not), including stay of any order, issue of any
injunction or direction in regard to payment of wages or other
amounts payable under the agreement referred to in Section 3,
setting aside any unilateral termination of contract or the dismissal
169
Rules: 1984
of a worker or reinstating a worker, as it deems just and proper in
the circumstances of the case:
Provided that the Tribunal shall not grant any such interim relief unless all
the parties to the proceeding have been served with a notice on the
application for such interim relief and have been given a reasonable
opportunity of being heard:
Provided further that the Tribunal may, having regard to the

nature of the interim relief sought and the circumstances of the
case, pass appropriate orders granting such interim relief as it
deems just and proper in the circumstances of the case before the
notice referred to in the proceeding proviso is served on the
parties to the proceeding:
Provided also that where the Tribunal makes any order under the
proviso immediately preceding, it shall record the reasons for
making the order before complying with the requirements
specified in the first proviso.
14. The summons. - The summons issued by a tribunal

shall be in Form ‘C’ and may require any person to produce before
it any books, papers or other documents and things in the
possession of or under the control of such person in any way
relating to the matter under investigation or adjudication by the
tribunal which the tribunal thinks necessary for the purpose of
such investigation or adjudication.
15. Service of summons or notice. --Subject to the
provision contained in Rule 18, any notice, summons, process or
order issued by a tribunal shall be served either personally or by
post. In the event of refusal by the party concerned to accept the
said notice, summons, process or order, the same shall be sent by
registered post.
16. Description of parties in certain cases. --Where in any
proceeding before a tribunal, there are numerous persons arrayed
on any side, such persons shall be described as follows: -
170
Rules: 1984
(1) all such persons as are members of any trade union or
association shall be described by the name of such trade union
or association; and
(2) all such persons as are not member of any trade union or
association shall be described in such manner as the tribunal
may determine.
17. Manner of service in the case of numerous persons as
parties to dispute. -
(1) Where there are numerous persons as parties to any
proceedings before a tribunal and such persons are members of
any trade union or association, the service of notice on the
secretary or where there is no secretary, on the principal officer of
the trade union or association shall be done deemed to be service
on such persons.
proceedings before a tribunal and such persons are not members
of any trade union or association, the tribunal shall where
personal service is not practicable, cause the service of any notice
to be made by affixing the same at or near the main entrance of the
establishment concerned.
(3) A notice served in the manner specified in sub-rule

(2) shall also be considered as sufficient service in the case of such
workman who cannot be ascertained and found.
18. Procedure at the first sitting. --At the first sitting of a
tribunal, the presiding officer shall call upon the parties in such
order as he may think fit to state their case.
19. Tribunal may proceed ex party. - If without sufficient
cause being shown, any party to proceedings before a tribunal fails
to attend or to be represented, the tribunal may proceed as if the
party had duly attended or had been represented.
20. A conciliation Officer or a Tribunal may enter in any
premises in occupation of the party to the dispute after giving a
171
Rules: 1984
reasonable notice to the party concerned for the purpose of
making enquiries under this Act.
21. Power of tribunals. --Every tribunal shall have the
same powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908) when trying a suit, in respect of the
following matters, namely: -
(a) enforcing the attendance of any person and examining him on
oath;
(b) compelling the production of documents and material objects;
(c) issuing commissions for the examination of witnesses;
(d) discovery and inspection;
(e) power of order -any point to be proved by affidavit.
22. Appointment of Assessors. --For any proceedings
before the Tribunal, the Assessors may be appointed under sub-
section (4) of Section 7 of the Act, to advise the Tribunal.
23. The tribunal shall have power to award damages in
and the cost of and incidental to any proceeding before it.
Form ‘A’
(See Rule 3)
An Agreement between Film Producer and Cine Worker
This agreement is made on this ................. of ........................ 19 .......................

between Messer................... having office at ........................ (a sole proprietary
concern/a firm registered under the Partnership Act, 1931/a Company
incorporated and registered under the Companies Act, 1956) (hereinafter
referred to as the “Producer”) on the first part and Shri/Smt/Kum
..................... son/daughter/wife of Shri .................. residing at ..................
(hereinafter referred to as the ‘” Cine Worker”) on the second part. The
terms ‘Producer’ and ‘Cine Worker’ shall include their heirs, successors,
administrators and legal representatives:
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Rules: 1984
Whereas the Producer is engaged in the Production of a talkie film,
his production
No. ................. tentatively titled as ................. in.........................

language in 35 mm/16mm/70mm gauge/Cinemascope, in
colour /black and white:
Whereas the said producer is desirous to engage the Cine

Worker in the capacity of a .................... in the aforesaid film and
the Cine Worker accepts the same:
Now, therefore this agreement is made as follows:
1. That both the parties agree that the duration of this

agreement shall be form the date hereof till the completion of the
film and this period shall not exceed consecutive months.
2. That the cine-worker agrees to attend studio, location
or work place, as the case may be, subject to the requirement of his
previous engagement and on his confirmation, to his respective job
punctually as and when he shall be required by a written
intimation by the Producer or the person duly authorized by him
in writing.
3. That inconsideration of the Cine-Workers’ services, as
aforesaid, the Producer agrees to pay and the Cine Worker agrees
to receive a sum of Rs. ............................... (Rupees ........................)
payable as advance on signing of this agreement and the balance
of Rs. .........................payable in ......................... equal installments.
4. That in the event of the film being not complete within
the stipulated period and the Producer still needing the services of
the Cine Worker to complete the film, the producer agrees to pay
and the Cine Worker agrees to receive additional remuneration on
pro-rata basis, payable in the same manner as stated in Clause 3
above, till the completion of the film.
5. That in case the assignment of the Cine worker is
completed earlier that the period stipulated in Clauses 1 and 4
173
Rules: 1984
above, the producer shall settle the account of the Cine Worker
and pay the remaining balance of the agreement amount in full
before the commencement of re-recording work/censor of the
film, whichever is earlier.
6. It is agreed by the Producer that for the purposes of this
agreement,
(a) a working day shall mean a period not exceeding eight
consecutive hours (to include one hours’ break for rest and
refreshments);
(b) a working week shall mean a six-day week from Monday to
Saturday, both inclusive, and the Cine Worker is not liable to
work on Sundays and Public Holidays:
(c) the cine worker shall not be required to work for more than five
consecutive hours without a break; and
(d) a period of not less than twelve hours shall elapse between the
Cine- Worker’s release from the studio/location/work-place
and the next succeeding call.
7. That the Cine Worker shall, if so required,
(a) attend the studios, location or work-place, as the case may be,
earlier than a scheduled time of the shift, for preparatory work,
and in that case, he/she shall be paid by the Producer extra
wages at the rate of Rs. ......per hour or part thereof for such
early attendance.
(b) continue to work beyond the working day, with one-hour
break and in that case, he/she shall be paid by the Producer
extra wages at the rate of Rs................. for the work during the
extended hours and refreshments, and transport facilities.
8. That the Producer shall provide transport and food or pay
traveling allowances to and for to report to duty and food allowance while
on duty as are customary or fixed by bilateral arrangements between the
Producer’s and Cine Worker’s representative organizations.
9. That the Producer shall also pay for all travelling and
174
Rules: 1984
accommodation expenses, fares, cost of food and such other
allowances as are customary when the Cine Worker is required to
work on location outdoors.
10. That the Producer shall get the Cine Worker insured for
any injury or damage to his/her person including death caused by
accident arising out of or in the course of his/her employment
and/or during the period of his/her assignment under this
agreement.
11. That where the Producer is prevented from
proceeding with the production of the film by reason of fire, riot,
natural calamity, order of the public authority or any other reason
beyond his control: -
(a) he shall be entitled to suspend the operation of this agreement
during the period of suspension of production in case the
production is suspended. The producer shall serve notice in
writing of such suspension on the Cine Worker and shall pay
all his/her dues up to the date of service of such notice. Upon
resumption of work on the film, this agreement shall revive
and shall remain valid for the period stipulated in Clause I
excluding the period of suspension therefrom; or
(b) he shall be entitled to terminate this agreement as from the
cessation of production, in case the production ceases
completely. The producer shall serve a notice in writing of such
cessation on the Cine-Worker and make payment of all the
amount due to the Cine Worker at the time of termination.
12. That in case if the Producer desires to terminate this
agreement before the expiry of its term for reasons other than
misconduct in relation to performance of the Cine Worker’s duties
or of his/her unwillingness to perform the services required
under this agreement, the producer shall be entitled to do so only
upon payment of the balance of the stipulated amount of the
agreement. Only after such payment to the Cine Worker, the
Producer shall be titled to employ another Cine Worker in his/her
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Rules: 1984
place.
13. That the Producer shall have the right to terminate this
agreement on ground of misconduct on the part of the Cine-
worker in relation to performance of his/her duties or his/her
unwillingness to perform the service required under the
agreement, upon payment to the Cine-worker of the amount due
at the time of termination, calculated taking into consideration the
Cine-worker’s total work in the film and the work he/she has
completed till the date of termination of this agreement.
Termination under this clause shall not be made unless the charges
of the Producer against the Cine-worker are proved before a forum
comprising equal number of representatives of the Producers’
Organization and the Cine-workers’ Organization to which the
Producer and the Cine- worker respectively may belong. The
decision of the forum shall be binding on both the parties. The
producer can engage another cine-worker for the job towards this
agreement only after the forum has given a decision in favour of
such termination and the cine-worker has been paid all his dues.
14. That in case of premature termination of this
agreement, it shall be the option of the Producer whether or not to
retain the work of the Cine worker in the film and at the same time,
it shall be option of the cine-worker whether or not to allow
his/her name to go on the credit titles of the film.
15. That the Producer shall have the right to decide the
manner of representing the Cine Worker’s personality on the
screen, his/her clothes, make-up and hair-style and the Cine
Worker shall fully and willingly comply with the direction of the
Producer in this regard, provided that the requirements of the
Producer in this respect have been notified to the Cine Worker and
accepted by him/her.
16. That the Cine Worker agrees that he/she shall render
his/her services to the best of his/her ability in such manner as the
Producer or, at his instance, the Director of the film may direct and
176
Rules: 1984
shall comply with all reasonable instructions that he may give for
the production of the film.
9. That the Producer shall also pay for all traveling and
accommodation expenses, fares, cost of food and such other
allowances as are customary when the Cine Worker is required to
work on location outdoors.
10. That the Producer shall get the Cine Worker insured
for any injury or damage to his/her person including death
caused by accident arising out of or in the course of his/her
employment and/or during the period of his/her assignment
under this agreement.
11. That where the Producer is prevented from
proceeding with the production of the film by reason of fire, riot,
natural calamity, order of the public authority or any other reason
beyond his control: -
(a) he shall be entitled to suspend the operation of this agreement
during the period of suspension of production in case the
production is suspended. The producer shall serve notice in
writing of such suspension on the Cine Worker and shall pay
all his/her dues up to the date of service of such notice. Upon
resumption of work on the film, this agreement shall revive
and shall remain valid for the period stipulated in Clause I
excluding the period of suspension therefore; or
(b) he shall be entitled to terminate this agreement as form the
cessation of production, in case the production ceases
completely. The producer shall serve a notice in writing of such
cessation on the Cine-Worker and make payment of all the
amount due to the Cine Worker at the time of termination.
12. That in case if the Producer desires to terminate this
agreement before the expiry of its term for reasons other than
misconduct in relation to performance of the Cine Worker’s duties
or of his/her unwillingness to perform the services required
under this agreement the producer shall be entitled to do so only
177
Rules: 1984
upon payment of the balance of the stipulated amount of the
agreement. Only after such payment to the Cine Worker, the
Producer shall be titled to employ another Cine Worker in his/her
place.
13. That the Producer shall have the right to terminate this
agreement on ground of misconduct on the part of the Cine-
worker in relation to performance of his/her duties or his/her
unwillingness to perform the service required under the
agreement, upon payment to the Cine-worker of the amount due
at the time of termination, calculated taking into consideration the
Cine-worker’s total work in the film and the work he/she has
completed till the date of termination of this agreement.
Termination under this clause shall not be made unless the charges
of the Producer against the Cine-worker are provided before a
forum comprising equal number of representatives of the
Producers’ Organization and the Cine-workers’ Organization to
which the Producer and the Cine- worker respectively may
belong. The decision of the forum shall be binding on both the
parties. The producer can engage another cine-worker for the
job towards this agreement only after the forum has given a
decision in favor of such termination and the cine-worker has been
paid all his dues.
14. That in case of premature termination of this
agreement, it shall be the option of the Producer whether or not to
retain the work of the Cine worker in the film and at the same time,
it shall be option of the cine-worker whether or not to allow
his/her name to go on the credit titles of the film.
15. That the Producer shall have the right to decide the
manner of representing the Cine Worker’s personality on the
screen, his/her clothes, make-up and hair-style and the Cine
Worker shall fully and willingly comply with the direction of the
Producer in this regard, provided that the requirements of the
Producer in this respect have been notified to the Cine Worker and
178
Rules: 1984
accepted by him/her.
16. That the Cine Worker agrees that he/she shall render
his/her services to the best of his/her ability in such manner as the
Producer or, at his instance, the Director of the film may direct and
shall comply with all reasonable instructions that he may give for
the production of the film.
17. That the Cine-worker shall comply with all the regulations
of the studio, location or work place as the case may be.
18. That the Producer shall not without the consent in

writing of the Cine-Worker, assign or transfer the benefit of this
agreement to any other person.
19. That the provisions of the Employees’ Provident
Funds and Miscellaneous Provisions Act, 1952 shall be applicable
to this agreement.
20. That the Producer shall not utilize the work of the
Cine-worker in any film, other than the film under this agreement,
without prior permission of the cine-worker.
179
Equal Remuneration Act, 1976
Chapter - 16

Equal Remuneration Act, 1976, followed with the chapter I
Preliminary, Chapter II Payment of remuneration at equal rates to
men and women workers and other matters, with the Complaints and
Claims under the Act, as well as Chapter III Miscellaneous issues on
the same.
[Act 25 of 1976 amended by Act 49 of 1987] contents
Chapter I
Preliminary
1. Short title, extent and commencement.

2. Definitions.
3. Act to have overriding erect.
Chapter II
Payment of remuneration at equal rates to men and women

workers and other matters
4. Duty of employer to pay equal remuneration to men and women

workers for same work or work of similar nature.
5. No discrimination to be made while recruiting men and women
180
workers.
6. Advisory Committee.
7. Power of appropriate Government to appoint authorities for
hearing and deciding claims and complaints.
Chapter III
Miscellaneous
8. Duty of employers to maintain registers.

9. Inspectors.
10. Penalties.
11. Offences by companies.
12. Cognizance and trial of offences.
13. Power to make rules.
14. Power of Central Government to give directions.
15. Act not to apply in certain special cases.
16. Power to make declaration.
17. Power to remove difficulties.
18. Repeal and saving.
An act to provide for the payment of equal remuneration to men

and women workers and for the prevention of discrimination, on
the ground of sex, against women in the matter of employment and
for matters connected therewith or incidental thereto
Be it enacted by Parliament in the Twenty-seventh Year of the

Republic of India as follow: -
Prefatory Note – Statement of Objects and Reasons. – Article 39 of

Constitution envisages that the State shall direct its policy, among
other things, towards securing that there is equal pay for equal work
for both men and women. To give effect to this constitutional
provision, the President promulgated on the 26th. September, 1975,
181
the Equal Remuneration Ordinance, 1975 so that the provisions of

Article 39 of the Constitution may be implemented in the year which
is being celebrated as the International Women’s Year. The Ordinance
provides for payment of equal remuneration to men and women
workers for the same work or work of similar nature and for the
prevention of discrimination on grounds of sex.
(2) The Ordinance 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.
(3) The Bill seeks to replace the Ordinance.1
Chapter – I
Preliminary
1. Short title, extend and commencement. -- (1) This Act may be

called the Equal Remuneration Act, 1976.
(2) It extends to the whole of India.
(3) It shall come into force on such date, not being later than three
years from the passing of this Act, as the Central Government may,
by notification, appoint and different dates may be appointed for
different establishments or employments.
2. Definitions. -- In this Act, unless the context otherwise requires, --

(a) “appropriate Government” means –
(i) in relation to any employment carried on by or under the
authority of the Central Government or a railway
administration, or in relation to a banking company, a mine,
oilfield or major port or any corporation established by or
under a Central Act, the Central Government, and
(ii) in relation to any other employment, the State Government;
(b) “commencement of this Act” means, in relation to an
182
establishment or employment, the date on which this Act comes

into force in respect of that establishment or employment;
1 Ordinance 12 of 1975, promulgated by the President on Sept. 26,

1975.
(c) “employer” has the meaning assigned to it in clause (f) of Section

2 of the Payment of Gratuity Act, 1972 (39 of 1972);
(d) “man” and “woman” mean male and female human beings,
respectively, of any age;
(e) “notification” means a notification published in the Official
Gazette;
(f) “prescribed” means prescribed by rules made under this Act;
(g) “remuneration” means the basic wage or salary, and any
additional emoluments whatsoever payable, either in cash or in
kind, to a person employed in respect of employment or work
done in such employment, if the terms of the contract of
employment, express or implied, were fulfilled;
(h) “same work or work of a similar nature” means 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 and the differences, if any, between the skill, effort and
responsibility required of a man and those required of a woman
are not of practical importance in relation to the terms and
conditions of employment;
(i) “worker” means a worker in any establishment or employment in
respect of which this Act has come into force;
(j) words and expressions used in this Act and not defined but
defined in the Industrial Disputes Act, 1947 (14 of 1947), shall
have the meaning respectively assigned to them in that Act.
3. Act to have overriding effect. -- The provisions of this Act shall
have effect notwithstanding anything inconsistent therewith
183
contained in any other law or in the terms of any award, agreement

or contract of service, whether made before or after the
commencement of this Act, or in any instrument having effect under
any law for the time being in force.
Chapter – II
Payment of remuneration at equal rates to men and women

workers and other matters
4. Duty of employer to pay equal remuneration to men and women

workers for same work or work of a similar nature. -- (1) No
employer shall pay to any worker, employed by him in an
establishment or employment, remuneration, whether payable in
cash or in kind, at rates less favorable than those at which
remuneration is paid by him to the workers of the opposite sex in
such establishment or employment for performing the same work or
work of a similar nature.
(2) No employer shall, for the purpose of complying with the
provisions of sub-section
(1), reduce the rate of remuneration of any worker.
(3) Where, in an establishment or employment, the rates of
remuneration payable before the commencement of this Act for men
and women workers for the same work or work of a similar nature
are different only on the ground of sex, then the higher (in cases
where there are only two rates), or, as the case may be, the highest (in
cases where there are only two rates), of such rates shall be the rate at
which remuneration shall be payable, on and from such
commencement, to such men and women workers:
Provided that nothing in this sub-section shall be deemed to entitle a

worker to the revision of the rate of remuneration payable to him or
her with reference to the service rendered by him or her before the
commencement of this Act.
184
5. No discrimination to be made while recruiting men and women

workers. -- On and from the commencement of this Act, no employer
shall, while making recruitment for the same work or work of a
similar nature, 2[or in any condition of service subsequent to
recruitment such as promotions, training or transfer], make any
discrimination against women except where the employment of
women in such work is prohibited or restricted by or under any law
for the time being in force:
Provided that the provisions of this section shall not affect any
priority or reservation for scheduled castes or scheduled tribes, ex-
servicemen, retrenched employees of any other class or category of
persons in the matter of recruitment to the posts in an establishment
or employment.
6. Advisory Committee. -- (1) For the purpose of providing

increasing employment opportunities for women, the appropriate
Government shall constitute one or more Advisory Committees to
advise it with regard to the extent to which women may be employed
in such establishments or employments as the Central Government
may, by notification, specify in this behalf.
(2) Every Advisory Committee shall consist of not less than ten
persons, to be nominated by the appropriate Government, of which
one-half shall be women.
(3) In tendering its advice, the Advisory Committee shall have
regard to the number of women employed in the concerned
establishment or employment, the nature of work, hours of work,
suitability of women for employment, as the case may be, the need
for providing increasing employment opportunities for women,
including part-time employment, and such other relevant factors as
the Committee may think fit.
(4) The Advisory Committee shall regulate its own procedure.
(5) The appropriate Government may, after considering the advice
tendered to it by the Advisory Committee and after giving to the
persons concerned in the establishment or employment an
185
opportunity to make representations, issue such directions in respect

of employment of women workers, as the appropriate Government
may think fit.
7. Power of appropriate Government to appoint authorities for
hearing and deciding claims and complaints. -- (1) The appropriate
Government may, by notification, appoint
2 Inserted by Act 49 of 1987, S.2 such officers, not below the rank of a
Labour Officer, as it thinks fit to be the authorities for the purpose of
hearing and deciding—
(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.
(2) Every complaint or claim referred to in sub-section (1) shall be
made in such manner as may be prescribed.
(3) If any question arises as to whether two or more works are of the
same nature or of a similar nature, it shall be decided by the authority
appointed under sub-section (1).
(4) Where a complaint or claim is made to the authority appointed
under sub-section (1) it may, after giving the applicant and the
employer an opportunity of being heard, and after such inquiry as it
may consider necessary, direct, —
(i) in the case of a claim arising out of a non-payment of wages
at equal rates to men and women workers for the same work
or work of a similar nature, that payment be made to the
worker of the amount by which the wages payable to him
exceed the amount actually paid;
186
(ii) in the case of complaint, that adequate steps be taken by the

employer so as to ensure that there is no contravention of any
provision of this Act.
(5) Every authority appointed under sub-section (1) 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).
(6) Any employer or worker aggrieved by any order made by an
authority appointed under sub-section (1), on a complaint or claim
may, within thirty days from the date of the order, prefer an appeal
to such authority as the appropriate Government may, by
notification, specify in this behalf, and that authority may, after
hearing the appeal, confirm, modify or reverse the order appealed
against and no further appeal shall lie against the order made by such
authority.
(7) The authority referred to in sub-section (6) may, if it is satisfied
that the appellant was prevented by sufficient cause from preferring
the appeal within the period specified in sub-section (6), allow the
appeal to be preferred within a further period of thirty days but not
thereafter.
(8) The provisions of sub-section (1) of Section 33-C of the Industrial
Disputes Act, 1947 (14 of 1947), shall apply for the recovery of monies
due from an employer arising out of decision of an authority
appointed under this section.
Chapter – III
Miscellaneous
8. Duty of employers to maintain registers. -- On and from the

commencement of this Act, every employer shall maintain such
187
registers and other documents in relation to the workers employed

by him as may be prescribed.
9. Inspectors. -- (1) The appropriate Government may, by
notification, appoint such persons as it thinks fit to be Inspectors for
the purpose of making an investigation as to whether the provisions
of this Act, or the rules made thereunder, are being complied with by
employers, and may define the local limits within which an Inspector
may make such investigation.
(2) Every Inspector shall be deemed to be a public servant within
the meaning of Section 21 of the Indian Penal Code (45 of 1860).
(3) An Inspector may, at any place within the local limits of his
jurisdiction, --
(a) enter, at any reasonable time with such assistance as he thinks fit,
any building, factory, premises or vessel:
(b) require any employer to produce any register, mister-roll or other
documents relating to the employment of workers, and examine
such documents;
(c) take on the spot or otherwise, the evidence of any person for the
purpose of ascertaining whether the provisions of this Act are
being, or have been, complied with:
(d) examine the employer, his agent or servant or any other person
found in charge of the establishment or any premises connected
therewith or any person whom the Inspector has reasonable cause
to believe to be, or to have been a worker in the establishment;
(e) make copies, or take extracts from, any register or other document
maintained in relation to the establishment under this Act.
(4) Any person required by an Inspector to produce any register or
other document or to give any information shall comply with such
requisition.
10. Penalties. -- (1) If after the commencement of this Act, any
employer, being required by or under this act, so to do—
(a) omits or fails to maintain any register or other document in
relation to workers employed by him, or
188
(b) omits or fails to produce any register, muster-roll or other

document relating to the employment of workers, or
(c) omits or refuses to gives any evidence or prevents his agent,
servant, or any other person in charge of the establishment, or any
worker, from giving evidence, or
(d) omits or refuses to give any information,
he shall be punishable 3[with simple imprisonment for a term which

may extend to one month or with fine which may extend to ten
thousand rupees or with both].
(2) If, after the commencement of this Act, any employer—

(a) makes any recruitment in contravention of the provisions of his
Act, or
(b) makes any payment or remuneration at unequal rates to men and
women worker, for the same work or work of a similar nature, or
(c) makes any discrimination between men and women workers in
contravention of the provisions of this Act, or
(d) omits or fails to carry out any direction made by the appropriate
Government under sub-section (5) of Section 6.
he shall be punishable 4[with fine which shall not be less than ten
thousand rupees but which may extend to twenty thousand rupees
or with imprisonment for a term which shall be not less than three
months but which may extend to one year or with both for the first
offence, and with imprisonment which may extend to two years for
the second and subsequent offences].
(3) If any person being required so to do, omits or refuses to produce

to an Inspector any register or other document or to give any
information, he shall be punishable with fine, which may extend to
five thousand rupees.
11. Offences by companies. -- (1) Where an offence under this Act
has been committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible to, the
189
company, for the conduct of the business of the company, as well as

the company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any

such person liable to any punishment, if he proves that the offence
was committed without his knowledge or that he had exercised all
due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where

any offence under this Act has been committed by a company and it
is proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part
3 Substituted by Act 49 of 1987, S.3.
Explanation. – For the purposes of this section, --
(a) “company” means anybody corporate and includes a firm or

other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
5
[12. Cognizance and trial of offences. -- (1) 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.
190
Explanation. –For the purposes of this sub-section “recognized

welfare institution or organization” means a social welfare
organization or institution recognized in this behalf by the Central or
State Government.]
13. Power to make rule. -- (1) The Central Government may, by

notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the
following matters, namely—
(a) the manner in which complaint or claim referred to in sub-section
(1) of Section 7 shall be made;
(b) registers and other documents which an employer is required
under Section 8 to maintain in relation to the workers employed
by him;
(c) any other matter which is required to be, or may be, prescribed.
14. Power of Central Government to give directions. -- The Central

Government may give directions to a State Government as to the
carrying into execution of this Act in the State.
6
[15. Act not to apply in certain special cases. -- Nothing in this Act
shall apply—
(a) to cases affecting the terms and conditions of a woman’s

employment in complying with the requirements of any law
giving special treatment to women, or
(b) to any special treatment accorded to women in connection with—
(i) the birth or expected birth of a child, or
(ii) the terms and conditions relating to retirement, marriage or
death or to any provision made in connection with the
retirement, marriage or death].
16. Power to make declaration. -- Where the appropriate
Government is, on a consideration of all the circumstances of the case,
satisfied that the differences in regard to the remuneration, or a
191
particular species of remuneration, or men and women workers in

any establishment or employment is based on a factor other than sex,
it may, by notification, make a declaration to that effect, and any act
of the employer attributable to such a difference shall not be deemed
to be contravention of any provision of this Act.
17. Power to remove difficulties. -- If any difficulty arises in giving
effect to the provisions of this Act, the Central Government may, by
notification, make any order, not inconsistent with the provisions of
this Act, which appears to it to be necessary for the purpose of
removing the difficulty:
Provided that every such order shall, as soon as may be after it is

made, be laid before each House of Parliament.
18. Repeal and saving. -- (1) The Equal Remuneration Ordinance,

1975 (12 of 1975) hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken

under the Ordinance, so repealed (including any notification,
nomination, appointment, order or direction made thereunder) shall
be deemed to have been done or taken under the corresponding
provisions of this Act, as if this Act were in force when such thing was
done or action was taken.
*********************
192
Industrial Disputes Act 1947
Chapter - 17
Introduction and Learning Assistance: This chapter focuses on The

Industrial Disputes Act, 1947, description of all the chapters under the
Industrial disputes act 1947. It starts with the Chapter I Preliminary,
Chapter II Authorities under this Act, Chapter II - A - notice of
change, Chapter II – B - Reference of certain individual disputes to
grievance settlement authorities, Chapter III Reference of disputes to
boards, courts or tribunals, Chapter IV Procedure, powers and duties
of authorities, Chapter V Strikes and Lockouts, Chapter V – A –
Layout and Retrenchment, Chapter V – B – Special provisions relating
to lay-off, retrenchment and closure in certain establishments, Chapter
V – C – Unfair labour practices, Chapter VI Penalties, Chapter VII
Miscellaneous, The First Schedule Section 2(N) (VI) Industries which
may be declared to be Public Utility Services under sub-clause (vi) of
clause (n) of section 2, The Second Schedule Section (7) Matters within
the Jurisdiction of Labour Courts, The Third Schedule Section (7A)
Matters within the Jurisdiction of Industrial Tribunals, The Fourth
Schedule Section (9A) Conditions of Service for change of which
Notice is to be given. It also focuses on the Fifth Schedule Section
2(RA) Labour Unfair Practices, I - On the part of employers and trade
unions of employers, II - On the part of workmen and trade union of
workmen, The Industrial Tribunal (Procedure) Rules, 1949, The
Industrial Tribunal (Central Procedure) Rules, 1954. Part I -
Procedure for reference of industrial disputes to boards of conciliation,
courts of enquiry, labour courts, industrial tribunals or national
tribunals. Part II – Arbitration Agreement, Part III - Powers,
procedure and duties of conciliation officers, boards, courts, labour
193
courts, tribunals, national tribunals and arbitrators, The Industrial

Disputes (Central) Rules, 1957, Part IV - Remuneration of chairmen and
members of courts, presiding officers of labour courts, tribunals and
national tribunals, assessors and witnesses, Part V – Notice of change,
Part VI – Representation of parties, Part VII – Works Committee, Part
VIII – Miscellaneous. 1[SCHEDULE [FORM A [SEE RULE 3] Form of
application for the reference of an industrial dispute to a board of
conciliation/court of enquiry/ labour court/tribunal/ national
tribunal under section 10(2) of the industrial disputes act, 1947. FORM
B [See Rule 6] 2 FORM C [See Rule 7] Agreement, FORM D [See Rule
17] Summons, FORM E [See Rule 34] Notice of Change of Service
Condition Proposed by an Employer, FORM F [See Rule 36]
Representation of parties, FORM G [See Rule 47] Form of nomination
paper.
G.S.R. 119(E), New Delhi, the 11 th. March, 1976. – In exercise of the
powers conferred by Section 13 of the Equal Remuneration Act, 1976
(25 of 1976) and the Supersession of Equal Remuneration Rules, 1975,
the Central Government hereby makes the following rules, namely: -
Chapter I
Preliminary
1. Short title, and commencement. -- (1) These rules may be called

the Equal Remuneration Rules, 1976.
(2) They shall come into force on the date of their publication in the
Official Gazette.
2. Definitions. -- In these rules, unless the context otherwise requires:

-
(a) “Act” means the Equal Remuneration Act, 1976 (25 of 1976);
(b) “Authority” means an authority appointed by the appropriate
Government under sub-section (1) of Section 7;
194
(c) “Form” means a form appended to these rules;

(d) “section” means a section of the Act;
(e) “registered Trade Union” means a Trade Union registered under
the Trade Unions Act, 1926 (16 of 1926).
Chapter II
Complaints and Claims under the Act
3. Complaints regarding contravention of the Act. -- (1) Every

complaint under clause
(a) of sub-section (1) of Section 7 shall be made in triplicate, in Form

‘A’ to the Authority.
(2) A single complaint may be made by, or on behalf of, or in

relation to, a group of workers, if they are employed in the same
establishment and the complaint relates to the same contravention.
(3) A complaint may be made by the workers himself or herself or
by any legal practitioner, or by any official of a registered Trade
Union, authorized in writing to appear and act on his or her behalf or
by any Inspector appointed under Section 9 or by any other person
acting with the permission of the Authority.
4. Claim regarding non-payment of wages etc. -- (1) Every claim
under clause (b) of sub-section (1) of Section 7 shall be made by
petition in triplicate, in Form ‘B’ to the Authority.
(2) A single petition may be made by, or on behalf of, or in relation
to, a group of workers, if they are employed in the same
establishment and their claims are of the same nature.
(3) A claim may be made by the worker himself or herself or by any
legal practitioner, or by any official or a registered Trade Union,
authorized in writing to appeal and act on his or her behalf or by any
Inspector appointed under Section 9 or any other person acting with
the permission of the Authority.
5. Authorization. -- The authorization referred to in Sub-rule (3) of
195
Rule 3 or Sub-rule (3) of Rule 4 shall be in Form ‘C’ which shall be

presented to the Authority to whom the complaint or the claim as the
case may be, is made along with such complaint or claim and shall
form part of the record.
Chapter II
Complaints and Claims under the Act
1. Complaints regarding contravention of the Act. -- (1) Every

complaint under clause
(a) of sub-section (1) of Section 7 shall be made in triplicate, in Form

‘A’ to the Authority.
(2) A single complaint may be made by, or on behalf of, or in

relation to, a group of workers, if they are employed in the same
establishment and the complaint relates to the same contravention.
(3) A complaint may be made by the workers himself or herself or
by any legal practitioner, or by any official of a registered Trade
Union, authorized in writing to appear and act on his or her behalf or
by any Inspector appointed under Section 9 or by any other person
acting with the permission of the Authority.
2. Claim regarding non-payment of wages etc. -- (1) Every claim
under clause (b) of sub-section (1) of Section 7 shall be made by
petition in triplicate, in Form ‘B’ to the Authority.
(2) A single petition may be made by, or on behalf of, or in relation
to, a group of workers, if they are employed in the same
establishment and their claims are of the same nature.
(3) A claim may be made by the worker himself or herself or by any
legal practitioner, or by any official or a registered Trade Union,
authorized in writing to appeal and act on his or her behalf or by any
Inspector appointed under Section 9 or any other person acting with
the permission of the Authority.
3. Authorization. -- The authorization referred to in Sub-rule (3) of
196
Rule 3 or Sub-rule (3) of Rule 4 shall be in Form ‘C’ which shall be

presented to the Authority to whom the complaint or the claim as the
case may be, is made along with such complaint or claim and shall
form part of the record.
The Industrial Disputes Act, 1947 1
THE INDUSTRIAL DISPUTES ACT, 1947
[14 OF 1947]
[11th March, 1947]
An Act to make provision for the investigation and settlement of

industrial disputes, and for certain other purposes.
WHEREAS it is expedient to make provision for the investigation

and settlement of industrial disputes, and for certain other purposes
hereinafter appearing;
It is hereby enacted as follows:
Chapter-I
Preliminary
1. Short title, extent and commencement. - (1) This Act may

be called The Industrial Disputes Act, 1947.
1[(2) It extends to the whole of India.]
2[***]
(3) It shall come into force on the first day of April, 1947.
2. Definitions. - In this Act, unless there is anything

repugnant in the subject or context, -
(a) “appropriate Government” means-
197
(i) in relation to any industrial dispute concerning 3[***] any

industry carried on by or under the authority of the Central
Government, 4[***] or by a railway company 5[or concerning
any such controlled industry as may be specified in this behalf
by the Central Government 6[***] or in relation to an industrial
dispute concerning 7[8[9[10[a Dock Labour Board established
under Section 5-A of the Dock Workers (Regulation of
Employment) Act, 1948 or 11[the Industrial Finance
Corporation of India Limited formed and registered under the
Companies Act, 1956 (1 of 1956)] or the Employees State
Insurance Corporation established under Section 3 of the
Employees State Insurance Act, 1948 (34 of 1948),
1 Subs by Act No. 36 of 1956, sec. 2, for sub-section (2) (w.e.f. 29-8-
1956).
2 Proviso omitted by Act 51 of 1970, sec. 2 and Sch. (w.e.f. 1-9-1971).
3 Certain words and figures ins. by Act 10 of 1963, S.47 and Sch.II,
Pt. II have been omitted by Act 36 of 1964, S.2 (w.e.f. 19.12.1964)
4 The words “by the Federal Railway Authority” omitted by the
A.O. 1948 5 Ins. by Act 65 of 1951, S.32
6 The words “operating a Federal Railway” omitted by the A.O. 1950 7
Ins. by Act 47 of 1961, S.51 (w.e.f. 1.1.1962)
8 Subs. by Act 36 of 1964, S.2, for “the Deposit Insurance Corporation

established” (w.e.f. 19.12.1964)
9 Subs. by Act 45 of 1971, S.2 (w.e.f.15.12.1971
10 Subs. by Act No.46 of 1982 (w.e.f.) 21.8.1984
11 Subs. by Act No.24 of 1996 dt. 16.8.1996, s. 2 deemed to have come

into force from 11.10.1995
198
2. The Industrial Disputes Act, 1947 Sec. 2
or the Board of Trustees constituted under Section 3-A of the Coal

Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of
1948), or the Central Board of Trustees and the State Boards of Trustees
constituted under Section 5A and Section 5B, respectively, of the
Employees' Provident Fund and Miscellaneous Provisions Act, 1952
(19 of 1952), 1[****], or the Life Insurance Corporation of India
established under section
3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or 2[the Oil
and Natural Gas Corporation Limited registered under the Companies
Act, 1956 (1 of 1956) or the Deposit Insurance and Credit Guarantee
Corporation established under Section 3 of the Deposit Insurance and
Credit Guarantee Corporation Act, 1961 (47 of 1961), or the Central
Warehousing Corporation established under Section 3 of the
Warehousing Corporations Act, 1962 (58 of 1962), or the Unit Trust of
India established under Section 3 of the Unit Trust of India Act, 1963
or the Food Corporation of India established under Section 3 or a
Board of Management established for two or more contiguous States
under Section 16 of the Food Corporations Act, 1964 (37 of 1964), or
3[the Airports Authority of India constituted under Section 3 of the
Airports Authority of India Act, 1994 (55 of 1994)] or a Regional Rural
Bank established under Section 3 of the Regional Rural Banks Act,
1976 (21 of 1976) or the Export Credit and Guarantee Corporation
Limited or the Industrial Reconstruction Bank of India Limited], 4[the
National Housing Bank established under section 4 of the National
Housing Bank Act, 1987 (53 of 1987), or 5[6[an air transport service,
or a banking or an insurance company], a mine, an oil-field], 7[a
Cantonment Board], or a major port, the Central Government, and]]
(ii) in relation to any other industrial dispute, the State

Government;
8[(aa) “arbitrator” includes an umpire;]
199
1 Omitted by Act No.24 of 1996 dt. 16.8.1996, deemed to have

come into force from 11.10.1995
2 Subs. by Act No.24 of 1996, sec. 2 for certain words (w.r.e.f 11-10-
1195).
3 Subs. by Act No. 24 of 1996 dt. 16.8.1996, deemed to have
4 Ins. by Act 53 of 1987, S.56 (w.e.f. 9.7.1988)
5 Subs. by Act No.24 of 1996 dt. 16.8.1996, deemed to have

6 Subs. by Act No.24 of 1996, sec. 2 for certain words
(w.r.e.f 11-10-1195). 7 Ins. by Act 36 of 1964, sec. 2
(w.e.f. 19.12.1964)
8 Ins. by Act 36 of 1964, S.2 (w.e.f. 19.12.1964)
200
Sec. 2 The Industrial Disputes Act, 1947 3
1[2[(aaa)] “average pay” means the average of the wages payable to

a workman-
(i) in the case of monthly paid workman, in the three complete

calendar months,
(ii) in the case of weekly paid workman, in the four complete weeks,
(iii) in the case of daily paid workman, in the twelve full working
days, preceding the date on which the average pay becomes
payable if the workman had worked for three complete
calendar months or four complete weeks or twelve full working
days, as the case may be, and where such calculation cannot be
made, the average pay shall be calculated as the average of the
wages payable to a workman during the period he actually
worked;]
3[(b) “award” means an interim or a final determination of any
industrial dispute or of any question relating thereto by any
Labour Court, Industrial Tribunal or National Industrial
Tribunal and includes an arbitration award made under
Section 10- A;]
4[(bb) “banking company” means a banking company as defined in

Section 5 of the 5[Banking Companies Act, 1949 (10 of 1949),
having branches or other establishments in more than one State,
and includes 6[the Export-Import Bank of India], 7[the
Industrial Reconstruction Bank of India], 8[***], 9[the Small
Industries Development Bank of India established under
section 3 of the Small Industries Development Bank of India
Act, 1989 (39 of 1989)] [the Reserve Bank of India, the State Bank
of India, 10[a corresponding new bank constituted under
Section 3 of the Banking Companies (Acquisition and Transfer
of Undertakings) Act, 1970 (5 of 1970) 11[a corresponding new
bank constituted under Section 3 of the Banking Companies
201
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of

1980), and any subsidiary bank], as defined in the State Bank
of India (Subsidiary Banks) Act, 1959 (38 of 1959);]
(c) “Board” means a Board of Conciliation constituted under this

Act;
12[(cc) “closure” means the permanent closing down of a place of
employment or part thereof;
1 Ins. by Act 43 of 1953, S.2 (w.e.f. 24.10.1953)
2 Re-lettered by Act No.36 of 1964

3 Subs. by Act No. 36 of 1956.
4 Subs. Act No.38 of 1959.
5 Now “the Banking Regulation Act, 1949”.
6 Ins. by Act No.28 of 1981.

7 Ins. by Act No.62 of 1984 (w.e.f.) 20.3.1985.
8 The words “The Industrial Development Bank of India”, ins.

By Act 18 of 1964, sec. 38 and Sch. II, Pt. II (w.e.f. 1-7-1964) and
omitted by Act 53 of 2003, sec. 12 and sch., Pt. III.
9 Inserted by Act 39 of 1989, sec. 53 and 2nd Sch.
10 Subs. by Act 5 of 1970, sec. 20, for “and any subsidiary bank”
(w.r.e.f. 19-7-1969).
11 Subs. by Act 40 of 1980, sec. 20, for “and any subsidiary bank”
(w.r.e.f 15-4-1980).
12 Ins. by Act No. 46 of 1982.
202
4 The Industrial Disputes Act, 1947 Sec.

2
(d) “conciliation officer” means a conciliation officer appointed under

this Act;
(e) “conciliation proceeding” means any proceeding held by a
conciliation officer or Board under this Act;
1[(ee) “controlled industry” means any industry the control of which
by the Union has been declared by any Central Act to be
expedient in the public interest;]
2[***]
(f) “Court” means a Court of Inquiry constituted under this Act;

(g) “employer” means-
(i) in relation to an industry carried on by or under the authority
of any department of 3[the Central Government or a State
Government] the authority prescribed in this behalf, or where
no authority is prescribed, the head of the department;
(ii) in relation to an industry carried on by or on behalf of a local
authority, the chief executive officer of that authority;
4[(gg) “executive”, in relation to a trade union, means the body by
whatever name called, to which the management of the affairs
of the trade union is entrusted;]
5[(h) ***]
(i) a person shall be deemed to be “independent” for the purpose of

his appointment as the chairman or other member of a Board,
Court or Tribunal, if he is unconnected with the industrial
dispute referred to such Board, Court or Tribunal or with any
industry directly affected by such dispute;
6[Provided that no person shall cease to be independent by reason

only of the fact that he is a shareholder of an incorporated company
203
which is connected with, or likely to be affected by, such industrial

dispute; but in such a case, he shall disclose to the appropriate
Government the nature and extent of the shares held by him in such
company;]
7(J) “industry” means any business, trade, undertaking,

manufacture or calling of employers and includes any calling,
service, employment, handicraft, or industrial occupation or
avocation of workmen;
(k) “industrial dispute” means any dispute or difference between

employers and employers, or between employers and
workmen, or between workmen and workmen, which is
connected with the
1 Ins. by Act No. 65 of 1951.
2 Omitted by Act No. 36 of 1964 (w.e.f. 15.12.1964.)
3 Subs. by the Indian Independence (Adaptation of Central

Acts and Ordinance) Order, 1948.
4 Ins. by Act 45 of 1971.
5 Omitted by the A.O. 1950.
7 On the enforcement of clause (c) of section 2 of Act 46 of 1982,
clause (j) of section 2 shall stand substituted as directed in
clause (c) of Act 46 of 1982. For the text of clause
(j) of section 2 see Appendix.
204
employment or non-employment or the terms of employment or with

the conditions of labour, of any person;
1[(ka) “industrial establishment or undertaking” means an

establishment or undertaking in which any industry is carried
on:
Provided that where several activities are carried on in an

establishment or undertaking and only one or some of such activities
is or are an industry or industries, then, -
(a) if any unit of such establishment or undertaking carrying on

any activity, being an industry, is severable from the other unit
or units of such establishment or undertaking, such unit shall
be deemed to be a separate industrial establishment or
undertaking;
(b) if the predominant activity or each of the predominant
activities carried on in such establishment or undertaking or
any unit thereof is an industry and the other activity or each of
the other activities carried on in such establishment or
undertaking or unit thereof is not severable from and is, for the
purpose of carrying on, or aiding the carrying on of, such
predominant activity or activities, the entire establishment or
undertaking or, as the case may be, unit thereof shall be
deemed to be an industrial establishment or undertaking;]
2[(kk) “insurance company” means an insurance company as defined
in section 2 of the Insurance Act, 1938 (4 of 1938), having branches or
other establishments in more than one State;
3[(kka) “khadi” has the meaning assigned to it in clause (d) of Section

2 of the Khadi and Village Industries Commission Act, 1956 (61 of
1956);
205
4[(kkb) “Labour Court” means a Labour Court constituted under

Section 7];
5[(kkk) “lay-off” (with its grammatical variations and cognate

expressions) means the failure, refusal or inability of an employer on
account of shortage of coal, power or raw materials or the
accumulation of stocks or the breakdown of machinery 6[or natural
calamity or for any other connected reason] to give employment to a
workman whose name is borne on the muster rolls of his industrial
establishment and who has not been retrenched;
Explanation. - Every workman whose name is borne on the muster

rolls of the industrial establishment and who presents himself for
work at the establishment at the time appointed for
1 Subs. by Act 46 of 1982 (w.e.f. 21.8.1984)
3 Ins. by I.D. (Amendment) Act 46 of 1982 (w.e.f. 21.8.1984)
4 Clause (kka) ins. by Act 36 of 1956, sec. 3 (w.e.f. 10-3-1957) and

re-lettered as clause (kkb) by Act 46 of 1982, sec. 2 (w.e.f.
21.8.1984)
6 Subs. by Act No.46 of 1982 (w.e.f. 21.8.1984)
206
6 The Industrial Disputes Act, 1947 Sec. 2
the purpose during normal working hours on any day and is not given
employment by the employer within two hours of his so presenting
himself shall be deemed to have been laid-off for that day within the
meaning of this clause:
Provided that if the workman, instead of being given

employment at the commencement of any shift for any day is asked
to present himself for the purpose during the second half of the shift
for the day and is given employment then, he shall be deemed to have
been laid-off only for one-half of that day:
Provided further that if he is not given any such employment

even after so presenting himself, he shall not be deemed to have been
laid-off for the second half of the shift for the day and shall be entitled
to full basic wages and dearness allowance for that part of the day;]
(l) “lock-out” means the 1[temporary closing of a place of

employment] or the suspension of work, or the refusal by an
employer to continue to employ any number of persons
employed by him;
2[(la) “major port” means a major port as defined in clause (8) of
section 3 of the Indian Ports Act, 1908 (15 of 1908);
(lb) “mine” means a mine as defined in clause (j) of sub- section (1) of
Section 2 of the Mines Act, 1952 (35 of 1952);]
3[(ll) “National Tribunal” means a National Industrial Tribunal

constituted under Section 7-B;]
4 [(lll) “office bearer”, in relation to a trade union, includes any

member of the executive thereof, but does not include an
auditor;]
(m) “prescribed” means prescribed by rules made under this Act;
207
(n) “public utility service” means-

(i) any railway service 5[or any transport service for the carriage
of passengers or goods by air;]
6[(ia) any service in, or in connection with the working of, any major
port or dock;]
(ii) any section of an industrial establishment, on the working of

which the safety of the establishment or the workmen
employed therein depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the
public;
(v) any system of public conservancy or sanitation;
(vi) any industry specified in the 7[First Schedule] which the
appropriate Government may, if satisfied that public
1 Subs. by Act No.46 of 1982 (w.e.f. 21.8.1982).

5 Ins. by Act 36 of 1964, S.2 (w.e.f. 19.12.1964)
6 Ins. by Act 36 of 1964 S.2 (w.e.f. 19.12.1971)
7 Subs. by Act 36 of 1964 (w.e.f. 19.12.1964).
208
emergency or public interest so requires, by notification in the Official

Gazette, declare to be a public utility service for the purposes of this
Act, for such period as may be specified in the notification:
Provided that the period so specified shall not, in the first

instance, exceed six months but may, by a like notification, be
extended from time to time, by any period not exceeding six months,
at any one time, if in the opinion of the appropriate Government,
public emergency or public interest requires such extension;
(o) “railway company” means a railway company as defined in

Section 3 of the Indian Railways Act, 1890 (9 of 1890);1
2[(oo) “retrenchment” means the termination by the employer of the
service of a workman for any reason whatsoever, otherwise
than as a punishment inflicted by way of disciplinary action,
but does not include-
(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of
superannuation if the contract of employment between the
employer and the workman concerned contains a stipulation
in that behalf; or
3[(bb) termination of the service of the workman as a result of the on-
renewal of the contract of employment between the employer
and the workman concerned on its expiry or of such contract
being terminated under a stipulation in that behalf contained
therein; or]
(c) termination of the service of a workman on the ground of

continued ill-health;]
4[(p) “settlement” means a settlement arrived at in the course of
conciliation proceeding and includes a written agreement
between the employer and workmen arrived at otherwise than
209
in the course of conciliation proceeding where such agreement

has been signed by the parties thereto in such manner as may
be prescribed and a copy thereof has been sent to 5[an officer
authorized in this behalf by] the appropriate Government and
the conciliation officer;]
(q) “strike” means a cessation of work by a body of persons

employed in any industry acting in combination, or a concerted
refusal, or a refusal under a common understanding, of any number
of persons who are or have been so employed to continue to work or
to accept employment;
6[(qq) trade union” means a trade union registered under the Trade
Unions Act, 1926 (16 of 1926);]
1 Now see the Railways Act, 1989 (24 of 1989).

3 Ins. by Act 49 of 1984 (w.e.f. 18.8.1984)
4 Ins. by Act 36 of 1956 (w.e.f. 7.10.1956).
6 Ins. by Act 46 of 1982, s. 2 (w.e.f. 21.8.1984).
210
1[(r) “Tribunal” means an Industrial Tribunal constituted under

Section 7-A and includes an Industrial Tribunal constituted before the
10th day of March, 1957, under this Act;]
2[(ra) “unfair labour practice” means any of the practices specified in

the Fifth Schedule; (rb) village industries” has the meaning assigned
to it in clause (h) of Section 2 of the Khadi and Village Industries
Commission Act, 1956 (61 of 1956);]
3[(rr) “wages” means all remuneration capable of being expressed in

terms of money, which would, if the terms of employment, expressed
or implied, were fulfilled, be payable to a workman in respect of his
employment, or of work done in such employment, and includes-
(i) such allowances (including dearness allowance) as the

workman is for the time being entitled to;
(ii) the value of any house accommodation, or of supply of light,
water, medical attendance or other amenity or of any service
or of any concessional supply of food grains or other articles;
(iii) any travelling concession;
4[(iv) any commission payable on the promotion of sales or business

or both;] but does not include-
(a) any bonus;

(b) any contribution paid or payable by the employer to any
pension fund or provident fund or for the benefit of the
workman under any law for the time being in force;
(c) any gratuity payable on the termination of his service;]
5[(s) “workman” means any person (including an apprentice)

employed in any industry to do any manual, unskilled, skilled,
211
technical, operational, clerical or supervisory work for hire or

reward, whether the terms of employment be express or implied,
and for the purposes of any proceeding under this Act in relation to
an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a
consequence of, that dispute, or whose dismissal, discharge or
retrenchment has led to that dispute, but does not include any such
person-
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the
Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957);
or
(ii) who is employed in the police service or as an officer or other
employee of a prison, or
(iii) who is employed mainly in a managerial or administrative
capacity, or
1 Subs. by Act 18 of 1957.
2 Ins. by Act 46 of 1982, s. 2 (w.e.f. 21.8.1984).
3 Ins. by Act 43 of 195, S. 2 (w.e.f. 24-10-1953).
4 Ins. by Act 46 of 1982, s. 2 (w.e.f. 21.8.1984).
5 Ins. by Act 46 of 1982, s. 2 for clause (s) (w.e.f. 21.8.1984).
212
(iv) who, being employed in a supervisory capacity, draws wages

exceeding one thousand six hundred rupees per mensem or
exercises, either by the nature of the duties attached to the
office or by reason of the powers vested in him, functions
mainly of a managerial nature.]
1[2A. Dismissal etc., of an individual workman to be deemed
to be an industrial dispute.- Where any employer discharges,
dismisses, retrenches or otherwise terminates the services of an
individual workman, any dispute or difference between that
workman and his employer connected with, or arising out of, such
discharge, dismissal, retrenchment or termination shall be deemed to
be an industrial dispute notwithstanding that no other workman nor
any union of workmen is a party to the dispute.]
Chapter II
Authorities Under This Act
3. Works Committee:- (1) In the case of any industrial

establishment in which one hundred or more workmen are employed
or have been employed on any day in the preceding twelve months,
the appropriate Government may by general or special order require
the employer to constitute in the prescribed manner a Works
Committee consisting of representatives of employers and workmen
engaged in the establishment, so however that the number of
representatives of workmen on the Committee shall not be less than
the number of representatives of the employer. The representatives of
the workmen shall be chosen in the prescribed manner from among
the workmen engaged in the establishment and in consultation with
their trade union, if any, registered under the Indian Trade Unions Act,
1926 (16 of 1926).
213
(2) It shall be the duty of the Works Committee to promote

measures for securing and preserving amity and good relations
between the employer and workmen and, to that end, to comment
upon matters of their common interest or concern and endeavor to
compose any material difference of opinion in respect of such matters.
4. Conciliation Officers: - (1) The appropriate Government

may, by notification in the Official Gazette, appoint such number of
persons as it thinks fit, to be Conciliation Officers, charged with the
duty of mediating in and promoting the settlement of industrial
disputes.
(2) A Conciliation Officer may be appointed for a specified area

or for specified industries in a specified area or for one or more specified
industries and either permanently or for a limited period.
5. Board of Conciliation:-(1) The appropriate Government

may as occasion arises by notification in the Official Gazette, constitute
a Board of Conciliation for promoting the settlement of an industrial
dispute.
(2) A Board shall consist of a Chairman and two or four other
members, as the appropriate Government thinks fit.
(3) The Chairman shall be an independent person and the
other members shall be persons appointed in equal numbers to
represent the parties to the dispute and any person appointed to
represent a party shall be appointed on the recommendation of that
party:
Provided that, if any party fails to make a recommendation as

aforesaid within the prescribed time, the appropriate Government
shall appoint such persons as it thinks fit to represent that party.
214
(4) A Board, having the prescribed quorum, may act

notwithstanding the absence of the Chairman or any of its members or
any vacancy in its number:
Provided that, if the appropriate Government notifies the Board
that the services of the Chairman or of any other member have ceased
to be available, the Board shall not act until a new chairman or
member, as the case may be, has been appointed.
6. Courts of Enquiry: - (1) The appropriate Government may

as occasion arises by notification in the Official Gazette, constitute a
Court of Inquiry for enquiring into any matter appearing to be
connected with or relevant to an industrial dispute.
(2) A Court may consist of one independent person or of such
number of independent persons as the appropriate Government may
think fit and where a Court consists of two or more members, one of
them shall be appointed as the Chairman.
(3) A Court, having the prescribed quorum, may act,
notwithstanding the absence of the Chairman or any of its members or
any vacancy in its number:
Provided that, if the appropriate Government notifies the Court
that the services of the Chairman have ceased to be available, the
Court shall not act until a new Chairman has been appointed.
1[7. Labour Courts. - (1) The appropriate Government may, by

notification in the Official Gazette, constitute one or more Labour
Courts for the adjudication of industrial disputes relating to any
matter specified in the Second Schedule and for performing such other
functions as may be assigned to them under this Act.
(2) A Labour Court shall consist of one person only to be

appointed by the appropriate Government.
(3) A person shall not be qualified for appointment as the
presiding officer of a Labour Court, unless-
215
2[(a) he is, or has been, a Judge of a High Court; or
(b) he has, for a period of not less than three years, been a District
Judge or an Additional District Judge;
(c) 3 [***]
4[(d) he has held any judicial office in India for not less than seven
years; or
5[(e) he has been the Presiding Officer of a Labour Court constituted

under any Provincial Act or State Act for not less than five
years.]
7A. Tribunals. - (1) The appropriate Government may, by

notification in the Official Gazette, constitute one or more Industrial
Tribunals for the adjudication of industrial disputes relating to any
matter, whether specified in the Second Schedule or the Third
Schedule 6[and for performing such other functions as may be assigned
to them under this Act].
(2)A Tribunal shall consist of one person only to be appointed

by the appropriate Government.

3 Omitted by Act 46 of 1982, w.e.f. 21.8.1984.
4 Re-lettered by Act 36 of 1964.

5 Clauses (a) and (b) re-lettered as clauses (d) and (e)
respectively by Act 36 of 1964, sec. 3 (w.e.f. 19-12-1964).
6 Ins. by Act 46 of 1982, sec. 4 (w.e.f. 21-8-1984).
216

presiding officer of a Tribunal unless-
(a) he is, or has been, a Judge of High Court; or
1[(aa) he has, for a period of not less than three years,
been a District Judge or an Additional District
Judge; 2[***]
(b) 3[***]
(4) The appropriate Government may, if it so thinks fit, appoint

two persons as assessors to advise the Tribunal in the proceeding
before it.
7B. National Tribunals. - (1) The Central Government may, by
notification in the Official Gazette, constitute one or more National
Industrial Tribunals for the adjudication of industrial disputes which,
in the opinion of the Central Government, involve questions of
national importance or are of such a nature that industrial
establishments situated in more than one State are likely to be
interested in, or affected by, such disputes.
(2) A National Tribunal shall consist of one person only to be

appointed by the Central Government.
Presiding Officer of a National Tribunal 4 [unless he is, or has been, a
Judge of a High Court.]
(4) The Central Government may, if it so thinks fit, appoint two
persons as assessors to advise the National Tribunal in the proceeding
before it.
7C. Disqualifications for the presiding officers of Labour Courts,
Tribunals and National Tribunals. - No person shall be appointed to,
or continue in, the office of the Presiding Officer of a Labour Court,
Tribunal or National Tribunal, if-
217
(a) he is not an independent person; or

(b) he has attained the age of sixty-five years.
5[8. Filling of vacancies.- If, for any reason a vacancy (other than a
temporary absence) occurs in the office of the presiding officer of a
Labour Court, Tribunal or National Tribunal or in the office of the
Chairman or any other member of a Board or Court, then, in the case
of a National Tribunal, the Central Government, and in any other case,
the Appropriate Government, shall appoint another person in
accordance with the provisions of this Act to fill the vacancy, and the
proceeding may be continued before the Labour Court, Tribunal,
National Tribunal, Board or Court, as the case may be, from the stage
at which the vacancy is filled.
9. Finality of orders constituting Boards, etc.- (1) No order of

the Appropriate Government or of the Central Government
appointing any person as the Chairman or any other member of a
Board or a Court or as the presiding officer of a Labour Court,
Tribunal or National Tribunal shall be called in question in any
manner; and no act or proceeding before any Board or Court shall be
called in question in any manner on the ground merely of the existence
of any vacancy in, or defect in the constitution of, such Board or Court.
2 The word “or” omitted by the Industrial Disputes

(Amendment) Act 46, 1982
3 Omitted by Act 46 of 1982, S.4 (w.e.f. 21.8.1984)
4 Subs. by Act 46 of 1982 (w.e.f. 21.8.1984).
5 Ss. by Act 36 of 1956, for Ss.8 and 9 (w.e.f. 10.3.1957)
218
12 The Industrial Disputes Act, 1947 Sec. 9A
(2) No settlement arrived at in the course of a conciliation

proceeding shall be invalid by reason only of the fact that such
settlement was arrived at after the expiry of the period referred to in
sub-section (6) of Section 12 or sub section (5) of Section 13, as the case
may be.
(3) Where the report of any settlement arrived at in the course
of conciliation proceeding before a Board is signed by the Chairman
and all the other members of the Board, no such settlement shall be
invalid by reason only of the casual or unforeseen absence of any of
the members (including the Chairman) of the Board, during any stage
of the proceeding.]
1[Chapter II - A notice of change
9A. Notice of change. - No employer, who purposes to effect any

change in the conditions of service applicable to any workman in
respect of any matter specified in the Fourth Schedule, shall effect
such change, -
(a) without giving to the workman likely to be affected by such

change a notice in the prescribed manner of the nature of the
change proposed to be effected; or
(b) within twenty-one days of giving such notice:
Provided that no notice shall be required for effecting any such
change—
(a) where the change is effected in pursuance of any 2[settlement

or award]; or
(b) where the workmen likely to be affected by the change are
persons to whom the Fundamental and Supplementary Rules,
Civil Services (Classification, Control and Appeal) Rules,
Civil Services (Temporary Service) Rules, Revised Leave
Rules, Civil Service Regulations, Civilians in Defence Services
219
(Classification, Control and Appeal) Rules or the Indian

Railway Establishment Code or any other rules or regulations
that may be notified in this behalf by the appropriate
Government in the Official Gazette, apply.
9B. Power of Government to exempt.- Where the appropriate
Government is of opinion that the application of the provisions of
Section 9A to any class of industrial establishments or to any class of
workmen employed in any industrial establishment affect the
employers in relation thereto so prejudicially that such application
may cause serious repercussion on the industry concerned and that
public interest so requires, the appropriate Government may, by
notification in the Official Gazette, direct that the provisions of the said
section shall not apply, or shall apply, subject to such conditions as
may be specified in the notification, to that class of industrial
establishments or to that class of workmen employed in any industrial
establishment.
3[Chapter II-B
Reference of certain individual disputes to grievance settlement

authorities
9C. Setting up of Grievance Settlement Authorities and reference

of certain individual disputes to such authorities. - (1) The employer
in relation to every industrial establishment in which fifty or more
workmen are employed or

3 Ins. by Act No.46 of 1982, S.7 (yet to be enforced).
220
have been employed on any day in the preceding twelve months,

shall provide for, in accordance with the rules made in that behalf
under this Act, a Grievance Settlement Authority for the settlement of
industrial disputes connected with an individual workman employed
in the establishment.
(2) Where an industrial dispute connected with an individual

workman arises in an establishment referred to in sub-section (1), a
workman or any trade union of workmen of which such workman is a
member, refer, in such manner as may be prescribed such dispute to
the Grievance Settlement Authority provided for by the employer
under that sub-section for settlement.
(3) The Grievance Settlement Authority referred to in sub-
section (1) shall follow such procedure and complete its proceedings
within such period as may be prescribed.
(4) No reference shall be made under Chapter III with respect to
any dispute referred to in this section unless such dispute has been
referred to the Grievance Settlement Authority concerned and the
decision of the Grievance Settlement Authority is not acceptable to
any of the parties to the dispute.]
Chapter III
Reference of disputes to boards, courts or tribunals
10. Reference of disputes to Boards, Courts or Tribunals. -

(1) 1[Where the appropriate Government is of opinion that any
industrial dispute exists or is apprehended, it may at any time], by
order in writing, -
(a) refer the dispute to a Board for promoting a settlement thereof;
or
(b) refer any matter appearing to be connected with or relevant to
the dispute, to a Court for inquiry; or
221
2[(c) refer the dispute or any matter appearing to be connected with,

or relevant to, the dispute, if it relates to any matter specified in
the Second Schedule, to a Labour Court for adjudication; or
(d) refer the dispute or any matter appearing to be connected with,

or relevant to, the dispute, whether it relates to any matter
specified in the Second Schedule or the Third Schedule, to a
Tribunal for adjudication:
Provided that where the dispute relates to any matter specified in

the Third Schedule and is not likely to affect more than one hundred
workmen, the appropriate Government may, if it so thinks fit, make
the reference to a Labour Court under Clause (c);]
3[Provided further that] where the dispute relates to a public

utility service and a notice under Section 22 has been given, the
appropriate Government shall, unless it considers that the notice has
been frivolously or vexatiously given or that it would be inexpedient
so to do, make reference under this sub-section notwithstanding that
any other proceedings under this Act in respect of the dispute may
have commenced:
4[Provided also that where the dispute in relation to which the

Central Government is the appropriate Government, it shall be
competent for the
1 Subs. by Act 18 of 1952
2 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957).
3 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957).
4 Ins. by Act 46 of 1982 (w.e.f. 21.8.1984).
222
Government to refer the dispute to a Labour Court or an Industrial

Tribunal, as the case may be, constituted by the State Government;]
1[(1-A) Where the Central Government is of opinion that any

industrial dispute exists or is apprehended and the dispute involves
any question of national importance or is of such a nature that
industrial establishments situated in more than one State are likely to
be interested in, or affected by, such dispute and that the dispute
should be adjudicated by a National Tribunal, then, the Central
Government may, whether or not it is the appropriate Government in
relation to that dispute, at any time, by order in writing, refer the
dispute or any matter appearing to be connected with, or relevant to,
the dispute, whether it relates to any matter specified in the Second
Schedule or the Third Schedule, to a National Tribunal for
adjudication.]
(2) Where the parties to an industrial dispute apply in the

prescribed manner, whether jointly or separately, for a reference of the
dispute to a Board, Court, 2[Labour Court, Tribunal, or National
Tribunal], the appropriate Government, if satisfied that the persons
applying represent the majority of each party, shall make the reference
accordingly.
3[(2-A) An order referring an industrial dispute to a Labour
Court, Tribunal or National Tribunal under this section shall specify
the period within which such Labour Court, Tribunal or National
Tribunal shall submit its award on such dispute to the appropriate
Government:
Provided that where such industrial dispute is connected with an

individual workman, no such period shall exceed three months:
Provided further that where the parties to an industrial dispute

apply in the prescribed manner, whether jointly or separately, to the
Labour Court, Tribunal or National Tribunal for extension of such
223
period or for any other reason, and the presiding officer of such Labour
Court, Tribunal or National Tribunal considers it necessary or
expedient to extend such period, he may for reasons to be recorded in
writing, extend such period by such further period as he may think fit:
Provided also that in computing any period specified in this sub-

section, the period, if any, for which the proceedings before the
Labour Court, Tribunal or National Tribunal had been stayed by any
injunction or order of a Civil Court shall be excluded:
Provided also that no proceedings before a Labour Court,

Tribunal or National Tribunal shall lapse merely on the ground that
any period specified under this sub-section had expired without such
proceedings being completed.]
(3) Where an industrial dispute has been referred to a Board,

4[Labour Court, Tribunal or National Tribunal] under this section, the
appropriate Government may by order prohibit the continuance of
any strike or lock-out in connection with such dispute which may be
in existence on the date of the reference.
5[(4) Where in an order referring an industrial dispute to 6[a
Labour Court, Tribunal or National Tribunal] under this section or in
a subsequent order, the appropriate Government has specified the
points of dispute for adjudication,

4 Subs. by Act 36 of 1956 (w.e.f) 10.3.1957
5 Ins. by Act 18 of 1952

224
1[the Labour Court or the Tribunal or the National Tribunal, as the case
may be], shall confine its adjudication to those points and matters
incidental thereto.
(5) Where a dispute concerning any establishment or

establishments has been, or is to be, referred to a 2[Labour Court,
Tribunal or National Tribunal] under this section and the appropriate
Government is of opinion, whether on an application made to it in this
behalf or otherwise, that the dispute is of such a nature that any other
establishment, group or class of establishments of a similar nature is
likely to be interested in, or affected by, such dispute, the appropriate
Government may, at the time of making the reference or at any time
thereafter but before the submission of the award, include in that
reference such establishment, group or class of establishments,
whether or not at the time of such inclusion any dispute exists or is
apprehended in that establishment, group, or class of
establishments].
3[(6) Where any reference has been made under sub-section (1-
A) to a National Tribunal, then notwithstanding anything contained
in this Act, no Labour Court or Tribunal shall have jurisdiction to
adjudicate upon any matter which is under adjudication before the
National Tribunal, and accordingly, -
(a) if the matter under adjudication before the National Tribunal is

pending in a proceeding before a Labour Court or Tribunal, the
proceeding before the Labour Court or the Tribunal, as the case
may be, in so far as it relates to such matter, shall be deemed to
have been quashed on such reference to the National Tribunal;
and
(b) it shall not be lawful for the appropriate Government to refer the
matter under adjudication before the National Tribunal to any
Labour Court or Tribunal for adjudication during the
pendency of the proceeding in relation to such matter before
225
the National Tribunal.

4[Explanation. - In this sub-section “Labour Court” or “Tribunal”
includes any Court or Tribunal or other authority constituted under
any law relating to investigation and settlement of industrial disputes
in force in any State].
(7) Where any industrial dispute, in relation to which the Central

Government is not the appropriate Government, is referred to a
National Tribunal, then, notwithstanding anything contained in this
Act, any reference in Section 15, Section 17, Section 19, Section 33-A,
Section 33-B and Section 36-A to the appropriate Government in
relation to such dispute shall be construed as a reference to the Central
Government but, save as aforesaid and as otherwise expressly
provided in this Act, any reference in any other provision of this Act to
the Appropriate Government in relation to that dispute shall mean a
reference to the State Government.]
5[(8) No proceedings pending before a Labour Court, Tribunal or

National Tribunal in relation to an industrial dispute shall lapse
merely by reason of the death of any of the parties to the dispute
being a workman, and such Labour
Subs. by Act 36 of 1956

4 Ins. by Act 36 of 1964 (w.e.f.) 19.12.1964
5 Ins. by Act 46 of 1982 (w.e.f. 21.8.1984).
226
Court, Tribunal or National Tribunal shall complete such

proceedings and submit its award to the appropriate Government].
1[10A. Voluntary reference of disputes to arbitration:- (1)

Where any industrial dispute exists or is apprehended and the
employer and the workmen agree to refer the dispute to arbitration,
they may, at any time before the dispute has been referred under
Section 10 to a Labour Court or Tribunal or National Tribunal, by a
written agreement, refer the dispute to arbitration and the reference
shall be to such person or persons (including the presiding officer of a
Labour Court or Tribunal or National Tribunal) as an arbitrator or
arbitrators as may be specified in the arbitration agreement.
2[(1A) Where an arbitration agreement provides for a reference of

the dispute to an even number of arbitrators, the agreement shall
provide for the appointment of another person as umpire who shall
enter upon the reference, if the arbitrators are equally divided in their
opinion, and the award of the umpire shall prevail and shall be
deemed to be the arbitration award for the purposes of this Act.]
(2) An arbitration agreement referred to in sub-section (1) shall

be in such form and shall be signed by the parties thereto in such
manner as may be prescribed.
(3) A copy of the arbitration agreement shall be forwarded to
the appropriate Government and the Conciliation Officer and the
appropriate Government shall, within 3[one month] from the date of
the receipt of such copy, publish the same in the Official Gazette.
4[(3A) Where an industrial dispute has been referred to
arbitration and the appropriate Government is satisfied that the
persons making the reference represent the majority of each party, the
appropriate Government may, within the time referred to in sub-
section (3), issue a notification in such a manner as may be prescribed;
and when any such notification is issued, the employers and workmen
227
who are not parties to the arbitration agreement but are concerned in
the dispute, shall be given an opportunity of presenting their case
before the arbitrator or arbitrators.]
(4) The arbitrator or arbitrators shall investigate the dispute

and submit to the appropriate Government the arbitration award
signed by the arbitrator or all the arbitrators, as the case may be.
5[(4-A) Where an industrial dispute has been referred to
arbitration and a notification has been issued under sub-section (3-A),
the appropriate Government may, by order, prohibit the continuance
of any strike or lockout in connection with such dispute which may
be in existence on the date of reference.]
(5) Nothing in the Arbitration Act, 1940 (10 of 1940)6, shall

apply to arbitrations under this section.]
1 Ins. by Act 36 of 1956 (w.e.f. 10.3.1957).
4 Subs. by Act 36 of 1964 (w.e.f. 19.12.1964).
5 Added by I.D. Amendment Act 36 of 1964.

6 Now see the Arbitration and Conciliation Act, 1996 (21 of 1996).
228
Chapter IV
Procedure, powers and duties of authorities
11. Procedure and power of conciliation officers, Boards,

Courts and Tribunals: - 1[(1) Subject to any rules that may be made
in this behalf, an arbitrator, a Board, Court, Labour Court, Tribunal
or National Tribunal shall follow such procedure as the arbitrator or
other authority concerned may think fit].
(2) A conciliation officer or a member of a Board, 2[or Court or
the presiding officer of a Labour Court, Tribunal or National Tribunal]
may, for the purpose of inquiry into any existing or apprehended
industrial dispute, after giving reasonable notice, enter the premises
occupied by any establishment to which the dispute relates.
(3) Every Board, Court, 3[Labour Court, Tribunal and
National Tribunal] shall have the same powers as are vested in a Civil
Court under the Code of Civil Procedure, 1908 (5 of 1908), when trying
a suit, in respect of the following matters, namely-
(a) Enforcing the attendance of any person and examining him on
oath;
(b) Compelling the production of documents and material objects;
(c) Issuing commissions for the examination of witnesses;
(d) In respect of such other matters as may be prescribed;
and every inquiry or investigation by a Board, Court, 4[Labour Court,
Tribunal or National Tribunal] shall be deemed to be a judicial
proceeding, within the meaning of Sections 193 and 228 of the Indian
Penal Code (45 of 1860).
(4) A Conciliation Officer 5[may enforce the attendance of any

person for the the purpose of examination of such person or call for]
and inspect any document which he has ground for considering to be
229
relevant to the industrial dispute 6[or to be necessary for the purpose

of verifying the implementation of any award or carrying out any
other duty imposed on him under this Act, and for the aforesaid
purposes, the conciliation officer shall have the same powers as are
vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of
1908) 7[in respect of enforcing the attendance of any person and
examining him or of compelling the production of documents].]
8[(5) A Court, Labour Court, Tribunal or National Tribunal may,
if it so thinks fit, appoint one or more persons having special
knowledge of the matter under consideration as assessor or assessors
to advise it in the proceeding before it.
[(6) All conciliation officers, members of a Board or Court and the

presiding officers of a Labour Court, Tribunal or National Tribunal
shall be deemed to be public servants within the meaning of Section 21
of the Indian Penal Code (45 of 1860).
1 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957).
2 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957).
3 S u b s . by Act 36 of 1956 (w.e.f.) 10.3.1957
4 S u b s . by Act 36 of 1956 (w.e.f.) 10.3.1957
5 Subs. by Act 46 of 1982 (w.e.f. 21.8.1984
6 Ins. by Act 36 of 1956 (w.e.f.) 10.3.1957
7 Subs. by Act 46 of 1982, sec. 9, for “in respect of compelling

the production of documents” (w.e.f. 21-8-1984).
8 Subs. by Act 36 of 1956 (w.e.f.) 10.3.1957
230
[(7) Subject to any rules made under this Act, the costs of, and
incidental to, any proceeding before a Labour Court, Tribunal or
National Tribunal shall be in the discretion of that Labour Court,
Tribunal or National Tribunal and the Labour Court, Tribunal or
National Tribunal, as the case may be, shall have full power to
determine by and to whom and to what extent and subject to what
conditions, if any, such costs are to be paid, and to give all necessary
directions for the purposes aforesaid and such costs may, on
application made to the appropriate Government by the person
entitled, be recovered by that Government in the same manner as an
arrear of land revenue].
1[(8) Every 2[Labour Court, Tribunal or National Tribunal] shall be

deemed to to be a Civil Court for the purposes of 3[Sections 345, 346
and 348 of the Code of of Criminal Procedure, 1973 (2 of 1974)]].
4[11A. Powers of Labour Courts, Tribunals and National

Tribunals to give appropriate relief in case of discharge or
dismissal of workmen.- Where an Industrial dispute relating to the
discharge or dismissal of a workman has been referred to a Labour
Court, Tribunal or National Tribunal for adjudication and, in the
course of the adjudication proceedings, the Labour Court, Tribunal or
National Tribunal, as the case may be, is satisfied that the order of
discharge or dismissal was not justified, it may, by its award, set aside
the order of discharge or dismissal and direct reinstatement of the
workman on such terms and conditions, if any, as it thinks fit, or give
such other relief to the workman including the award of any lesser
punishment in lieu of discharge or dismissal as the circumstances of
the case may require:
Provided that in any proceeding under this section the Labour

Court, Tribunal or National Tribunal, as the case may be, shall rely
231
only on the materials on record and shall not take any fresh evidence
in relation to the matter].
12. Duties of conciliation officers: - (1) Where any industrial

dispute exists or is apprehended, the conciliation officer may, or where
the dispute relates to a public utility service and a notice under Section
22 has been given, shall, hold conciliation proceedings in the
prescribed manner.
(2) The Conciliation Officer shall, for the purpose of bringing
about a settlement of the dispute, without delay, investigate the
dispute and all matters affecting the merits and the right settlement
thereof and may do all such things as he thinks fit for the purpose of
inducing the parties to come to a fair and amicable settlement of the
dispute.
(3) If a settlement of the dispute or of any of the matters in
dispute is arrived at in the course of the conciliation proceedings the
conciliation officer shall send a report thereof to the appropriate
Government 5[or an officer authorized in this behalf by the
appropriate Government] together with a memorandum of the
settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer
shall, as soon as practicable after the close of the investigation, send
to the appropriate Government a full report setting forth the steps
taken by him for ascertaining the facts and circumstances relating to the
dispute and for bringing about settlement
2 Subs. by Act 36 of 1956 (w.e.f. 10.3.1957
3 Subs. by Act 46 of 1982 (w.e.f. 21.8.1984)

5 Ins. by Act 35 of 1965 (w.e.f.) 1.12.1965
232
thereof, together with a full statement of such facts and circumstances,

and the reasons on account of which, in his opinion, a settlement could
not be arrived at.
(5) If, on a consideration of the report referred to in sub-

section (4), the appropriate Government is satisfied that there is a case
for reference to a Board, 1[Labour Court, Tribunal or National
Tribunal], it may make such reference. Where the appropriate
Government does not make such a reference it shall record and
communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within
fourteen days of the commencement of the conciliation proceedings or
within such shorter period as may be fixed by the appropriate
Government:
2[Provided that, 3[subject to the approval of the conciliation
officer] the time for the submission of the report may be extended by
such period as may be agreed upon in writing by all the parties to the
dispute].
13. Duties of Board: - (1) Where a dispute has been referred

to a Board under this Act, it shall be the duty of the Board to endeavor
to bring about a settlement of the same and for this purpose the Board
shall, in such manner as it thinks fit and without delay, investigate
the dispute and all matters affecting the merits and the right
settlement thereof and may do all such things as it thinks fit for the
purpose of inducing the parties to come to a fair and amicable
settlement of the dispute.
(2) If a settlement of the dispute or of any of the matters in
dispute is arrived at in the course of the conciliation proceedings, the
Board shall send a report thereof to the appropriate Government
together with a memorandum of the settlement signed by the parties
to the dispute.
(3) If no such settlement is arrived at, the Board shall, as soon
233
as practicable after the close of the investigation, send to the

appropriate Government a full report setting forth the proceedings
and steps taken by the Board for ascertaining the facts and
circumstances relating to the dispute and for bringing about a
settlement thereof, together with a full statement of such facts and
circumstances, its finding thereon, the reasons on account of which,
in its opinion, a settlement could not be arrived at and its
recommendations for the determination of the dispute.
(4) If, on the receipt of a report under sub-section (3) in respect
of a dispute relating to public utility service, the appropriate
Government does not make a reference to a 4[Labour Court, Tribunal
or National Tribunal] under Section 10, it shall record and
communicate to the parties concerned its reasons therefor.
(5) The Board shall submit its report under this section within
two months of the date 5[on which the dispute was referred to it] or
within such shorter period as may be fixed by the appropriate
Government:
Provided that the appropriate Government may from time to time

extend the time for the submission of the report by such further
periods not exceeding two months in the aggregate:
Provided further that the time for the submission of the report
may be extended by such period as may be agreed on in writing by all
the parties to the dispute.
1 Subs. by Act 36 of 1956 (w.e.f.) 10.3.1957
2 Ins. by Act 36 of 1956 (w.e.f.) 10.3.1957
3 Ins. by Act 36 of 1964 (w.e.f. 19.12.1964
4 Subs. by Act 36 of 1956 (w.e.f. 10.3.1957)
234
14. Duties of Courts: - A Court shall inquire into the matters

referred to it and report thereon to the appropriate Government
ordinarily within a period of six months from the commencement of
its inquiry.
1[15. Duties of Labour Courts, Tribunals and National

Tribunals:- Where an industrial dispute has been referred to a Labour
Court, Tribunal or National Tribunal for adjudication, it shall hold its
proceedings expeditiously and shall, 2[within the period specified in
the order referring such industrial dispute or the further period
extended under the second proviso to sub-section (2-A) of Section 10],
submit its award to the appropriate Government.]
16. Form of Report or Award: - (1) The report of a Board or

Court shall be in writing and shall be signed by all the members of the
Board or Court, as the case may be:
Provided that nothing in this section shall be deemed to prevent

any member of the Board or Court from recording any minute of
dissent from a report or from any recommendation made therein.
(2) The award of a Labour Court or Tribunal or National Tribunal

shall be in writing and shall be signed by its presiding officer.]
17. Publication of reports and awards: - (1) Every report of a

Board or Court together with any minute of dissent recorded
therewith, every arbitration award and every award of the Labour
Court, Tribunal or National Tribunal shall, within a period of thirty
days from the date of its receipt by the appropriate Government, be
published in such manner as the appropriate Government thinks fit.
(2) Subject to the provisions of Section 17-A, the award
published under sub-section (1) shall be final and shall not be called
in question by any Court in any manner whatsoever.
235
17A. Commencement of the award: - (1) An award (including an

arbitration award) shall become enforceable on the expiry of thirty
days from the date of its publication under Section 17:
Provided that-
(a) if the appropriate Government is of opinion, in any case where

the award has been given by a Labour Court or Tribunal in
relation to an industrial dispute to which it is a party; or
(b) if the Central Government is of opinion, in any case where the
award has been given by a National Tribunal, that it will be
inexpedient on public grounds affecting national economy or
social justice to give effect to the whole or any part of the
award, the appropriate Government, or as the case may be, the
Central Government may, by notification in the Official
Gazette, declare that the award shall not become enforceable
on the expiry of the said period of thirty days.
(2)
Where any declaration has been made in relation to an
award under the proviso to sub-section (1), the appropriate
Government or the Central Government may, within ninety days
from the date of publication of the award under Section 17, make an
order rejecting or modifying the award, and shall, on the first available
opportunity, lay the award together with a copy of the order before
the Legislature of the State, if the order has been made by a State
1 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957)
2 S u b s . by Act 46 of 1982 (w.e.f. 21.8.1984)
236
Government, or before Parliament, if the order has been made by the

Central Government.
(3) Where any award as rejected or modified by an order made

under sub- section (2) is laid before the Legislature of a State or before
Parliament, such award shall become enforceable on the expiry of
fifteen days from the date on which it is so laid; and where no order
under sub-section (2) is made in pursuance of a declaration under the
proviso to sub-section (1), the award shall become enforceable on the
expiry of the period of ninety days referred to in sub- section (2).
(4) Subject to the provisions of sub-section (1) and sub-section
(3) regarding the enforceability of an award, the award shall come
into operation with effect from such date as may be specified therein,
but where no date is so specified, it shall come into operation on the
date when the award becomes enforceable under sub-section (1) or
sub-section (3), as the case may be.]
1[17B. Payment of full wages to workman pending
proceedings in higher Courts.- Where in any case, a Labour Court,
Tribunal or National Tribunal by its award directs reinstatement of
any workman and the employer prefers any proceedings against such
award in a High Court or the Supreme Court, the employer shall be
liable to pay such workman, during the period of pendency of such
proceedings in the High Court or the Supreme Court, full wages last
drawn by him, inclusive of any maintenance allowance admissible to
him under any rule if the workman had not been employed in any
establishment during such period and an affidavit by such workman
had been filed to that effect in such Court:
Provided that where it is proved to the satisfaction of the High

Court or the Supreme Court that such workman had been employed
and had been receiving adequate remuneration during any such
237
period or part thereof, the Court shall order that no wages shall be
payable under this section for such period or part, as the case may be.
18. Persons on whom settlements and awards are binding. -

2[(1) A settlement arrived at by agreement between the employer and
workman otherwise than in the course of conciliation proceeding
shall be binding on the parties to the agreement.
(2) 3[Subject to the provisions of sub-section (3), an arbitration
award] which has become enforceable shall be binding on the parties
to the agreement who referred the dispute to arbitration.]
4[(3) A settlement arrived at in the course of conciliation
proceedings under this Act 5[or an arbitration award in a case where a
notification has been issued under sub-section (3A) of Section 10A] or
6[an award 7[of a Labour Court, Tribunal or National Tribunal] which
has become enforceable] shall be binding on-
(a) all parties to the industrial dispute;

(b) all other parties summoned to appear in the proceedings
1 I n s . by Act 46 of 1982 S.11 (w.e.f. 21.8.1984)
2 I n s . by Act 36 of 1956, S.13 (w.e.f.7.10.1956)

4 Renumbered by Act 36 of 1956
6 Sub. by Act 48 of 1950
238
as parties to the dispute, unless the Board, 1[arbitrator,] 2[Labour

Court, Tribunal or National Tribunal], as the case may be, records the
opinion that they were so summoned without proper cause;
(c) where a party referred to in clause (a) or clause (b) is an

employer, his heirs, successors or assigns in respect of the
establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) is composed
of workmen, all persons who were employed in the
establishment or part of the establishment, as the case may be,
to which the dispute relates on the date of the dispute and all
persons who subsequently become employed in that
establishment or part.
19. Period of operation of settlements and awards. - (1) A

settlement 3[***] 3[***] shall come into operation on such date as is
agreed upon by the parties to the dispute, and if no date is agreed
upon, on the date on which the memorandum of the settlement is
signed by the parties to the dispute.
(2) Such settlement shall be binding for such period as is agreed upon
by
the parties, and if no such period is agreed upon, for a period of six
months 4[from the date on which the memorandum of settlement is
signed by the parties to the dispute], and shall continue to be binding
on the parties after the expiry of the period aforesaid, until the expiry
of two months from the date on which a notice in writing of an
intention to terminate the settlement is given by one of the parties to the
other party or parties to the settlement.
5[(3) An award shall, subject to the provisions of this section,

remain in operation for a period of one year 6[from the date on which
the award becomes enforceable under Section 17A]:
239
Provided that the appropriate Government may reduce the said

period and fix such period as it thinks fit:
Provided further that the appropriate Government may, before

the expiry of the said period, extend the period of operation by any
period not exceeding one year at a time as it thinks fit, so, however,
that the total period of operation of any award does not exceed three
years from the date on which it came into operation.
(4) Where the appropriate Government, whether of its own

motion or on the application of any party bound by the award,
considers that since the award was made, there has been a material
change in the circumstances on which it was based, the appropriate
Government may refer the award or a part of it 7[to a Labour Court,
if the award was that of a Labour Court or to a Tribunal, if the award
was that of a Tribunal or of a National Tribunal] for decision whether
the period of operation should not, by reason of such change, be
shortened and the decision of 8[Labour Court or the Tribunal, as the
case may be], on such reference shall 9[***] be final.

3 Omitted by Act 36 of 1956, S.14 (w.e.f. 7.10.1956
4 Ins. by Act 36 of 1956, S.14 (w.e.f. 7.10.1956

6 Inserted by Act 36 of 1956
7 Subs. by Act 36 of 1956, S.14 (w.e.f. 7.10.1956
8 Substituted by Act 36 of 1956

9 Omitted by Act 36 of 1956
240
(5) Nothing contained in sub-section (3) shall apply to any

award which by its nature, terms or other circumstances does not
impose, after it has been given effect to, any continuing obligation on
the parties bound by the award.
(6) Notwithstanding the expiry of the period of operation
under sub-section (3), the award shall continue to be binding on the
parties until a period of two months has elapsed from the date on
which notice is given by any party bound by the award to the other
party or parties intimating its intention to terminate the award.
1[(7) No notice given under sub-section (2) or sub-section (6)
shall have effect, unless it is given by a party representing the majority
of persons bound by the settlement or award, as the case may be.]
20. Commencement and conclusion of proceedings. - (1) A

conciliation proceeding shall be deemed to have commenced on the
date on which a notice of strike or lock-out under Section 22 is received
by the conciliation officer or on the date of the order referring the
dispute to a Board, as the case may be.
(2)A conciliation proceeding shall be deemed to have
concluded-
(a) where a settlement is arrived at, when a memorandum of the
settlement is signed by the parties to the dispute;
(b) where no settlement is arrived at, when the report of the
conciliation officer is received by the appropriate Government
or when the report of the Board is published under Section 17,
as the case may be; or
(c) when a reference is made to a Court, 2[Labour Court, Tribunal
or National Tribunal] under Section 10 during the pendency
of conciliation proceedings.
(3) Proceedings 3[before an arbitrator under Section 10-A or
before a Labour Court, Tribunal or National Tribunal] shall be
deemed to have commenced on the date of the 4[reference of the
241
dispute for arbitration or adjudication, as the case may be,] and such
proceedings shall be deemed to have concluded 5[on the date on which
the award becomes enforceable under Section 17-A.]
21. Certain matters to be kept confidential.- There shall not
be included in any report or award under this Act any information
obtained by a conciliation officer, Board, Court, 6[Labour Court,
Tribunal, National Tribunal or an arbitrator], in the course of any
investigation or inquiry as to a trade union or as to any individual
business (whether carried on by a person, firm or company) which is
not available otherwise than through the evidence given before such
officer, Board, Court, 7[Labour Court, Tribunal, National Tribunal or
an arbitrator], if the trade union, person, firm or company in question
has made a request in writing to the conciliation officer, Board, Court
8[Labour Court, Tribunal, National Tribunal, or arbitrator] as the case
may be, that such
1 Inserted by Act 36 of 1964
2 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957)
3 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957)
4 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957)

6 Substituted for words “or Tribunal” by the Industries
Disputes (Amendment and Miscellaneous Provisions) Act 36
of 1956 w.e.f. 10-3-1957.
7 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957)
8 S u b s . by Act 36 of 1956 (w.e.f. 10.3.1957)
242
information shall be treated as confidential; nor shall such conciliation

officer or any individual member of the Board, 1[or Court or the
presiding officer of the Labour Court, Tribunal or National Tribunal
or the arbitrator] or any person present at or concerned in the
proceedings disclose any such information without the consent in
writing of the secretary of the trade union or the person, firm or
company in question, as the case may be:
Provided that nothing contained in this section shall apply to a

disclosure of any such information for the purposes of a prosecution
under Section 193 of the Indian Penal Code (45 of 1860).
Chapter - V
Strikes and lock-outs
22. Prohibition of strikes and lock-outs. - (1) No person

employed in a public utility service shall go on strike in breach of
contract-
(a) without giving to the employer notice of strike, as hereinafter
provided, within six weeks before striking; or
(b) within fourteen days of giving such notice; or
(c) before the expiry of the date of strike specified in any such notice
as aforesaid; or
(d) during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings.
(2) No employer carrying on any public utility service shall
lock-out any of his workmen-
(a) without giving them notice of lock-out as hereinafter
provided, within six weeks before locking-out; or
(b) within fourteen days of giving such notice; or
243
(c) before the expiry of the date of lock-out specified in any such
notice as aforesaid; or
(d) during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings.
(3) The notice of lock-out or strike under this section shall not be
necessary where there is already in existence a strike or, as the case may
be, lock-out in the public utility service, but the employer shall send
intimation of such lock-out or strike on the day on which it is declared,
to such authority as may be specified by the appropriate Government
either generally or for a particular area or for a particular class of
public utility services.
(4) The notice of strike referred to in sub-section (1) shall be
given by such number of persons to such person or persons and in
such manner as may be prescribed.
(5) The notice of lock-out referred to in sub-section (2) shall be
given in such manner as may be prescribed.
(6) If on any day an employer receives from any person
employed by him any such notices as are referred to in sub-section (1)
or gives to any persons employed by him any such notices as are
referred to in sub-section (2), he shall within five days thereof report
to the appropriate Government or to such authority as that
Government may prescribe, the number of such notices received or
given on that day.
1 Subs. by Act 36 of 1956 (w.e.f. 10.3.1957)
244
Sec. 25A The Industrial Disputes Act, 1947 25
23. General prohibition of strikes and lock-outs. - No

workman who is employed in any industrial establishment shall go on
strike in breach of contract and no employer of any such workman
shall declare a lock-out-
(a) during the pendency of conciliation proceedings before a Board
and seven days after the conclusion of such proceedings;
(b) during the pendency of proceedings before 1[a Labour Court,
Tribunal or National Tribunal] and two months after the
conclusion of such proceedings; 2[***]
3[(bb) during the pendency of arbitration proceedings before an
arbitrator and two months after the conclusion of such
proceedings, where a notification has been issued under sub-
section (3-A) of Section 10-A; or]
(c) during any period in which a settlement or award is in

operation in respect of any of the matters covered by the
settlement or award.
24. Illegal strikes and lock-outs. - (1) A strike or a lock-out
shall be illegal
if-
it is commenced or declared in contravention of Section 22 or

Section 23; or
(i) it is continued in contravention of an order made under sub-

section (3) of Section 10 4[or sub-section (4-A) of Section 10-A]
(2) Where a strike or lock-out in pursuance of an industrial dispute
has
already commenced and is in existence at the time of the reference of the
dispute to a Board, 5[an arbitrator,] 6[a Labour Court, Tribunal or
National Tribunal], the continuance of such strike or lock-out shall not
be deemed to be illegal, provided that such strike or lock-out was not
245
at its commencement in contravention of the provisions of this Act or

the continuance thereof was not prohibited under sub- section (3) of
Sec.10 7[or sub- section 4(A) of Section 10-A].
(3) A lock-out declared in consequence of an illegal strike or a

strike declared in consequence of an illegal lock-out shall not be
deemed to be illegal.
25. Prohibition of financial aid to illegal strikes and lock-
outs. - No person shall knowingly expend or apply any money in
direct furtherance or support of any illegal strike or lock-out.
8[Chapter V-A
Lay-off and retrenchment
25A. Application of Sections 25-C to 25-E.- (1) Sections 25-C to

25-E inclusive 9[shall not apply to industrial establishments to which
Chapter V-B applies,] or
(a) to industrial establishments in which less than fifty workmen

on an average per working day have been employed in the
preceding calendar month; or
1 Subs. by Act 36 of 1956 (w.e.f. 10.3.1957)
2 Omitted by Act 36 of 1964 (w.e.f. 19.12.1964)
3 Inserted by Act 36 of 1964 (w.e.f. 19-12-1964).
4 Ins. by Act 36 of 1964 (w.e.f. 19.12.1964)

246
26 The Industrial Disputes Act, 1947 Sec. 25B
(b) to industrial establishments which are of a seasonal character or

in which work is performed only intermittently.
(2) If a question arises whether an industrial establishment is of
a seasonal character or whether work is performed therein only
intermittently, the decision of the appropriate Government thereon
shall be final
1[Explanation. - In this section and in Sections 25-C, 25-D and
25-E, “industrial establishment” means-
(i) a factory as defined in clause (m) of Section 2 of the Factories

Act, 1948 (63 of 1948); or
(ii) a mine as defined in clause (f) of Section 2 of the Mines Act, 1952
(35 of 1952); or
(iii) a plantation as defined in clause (f) of Section 2 of the
Plantations Labour Act, 1951 (69 of 1951).]
2[25B. Definition of continuous service. - For the purposes of

this Chapter, --
(1) a workman shall be said to be in continuous service for a

period if he is, for that period, in uninterrupted service, including
service which may be interrupted on account of sickness or authorized
leave or an accident or a strike which is not illegal, or a lock-out or a
cessation of work which is not due to any fault on the part of the
workman;
(2) where a workman is not in continuous service within the
meaning of clause (1) for a period of one year or six months, he shall
be deemed to be in continuous service under an employer-
(a) for a period of one year, if the workman, during a period of
twelve calendar months preceding the date with reference to
which calculation is to be made, has actually worked under
the employer for not less than-
(i) one hundred and ninety days in the case of a workman
247
employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of
six calendar months preceding the date with reference to
which calculation is to be made, has actually worked under
the employer for not less than-
(i) ninety-five days, in the case of a workman employed below
ground in a mine; and
(ii) one hundred and twenty days, in any other case.
Explanation. - For the purpose of clause (2), the number of days
on which a workman has actually worked under an employer shall
include the days on which-
(i) he has been laid-off under an agreement or as permitted by

standing orders made under the Industrial Employment
(Standing Orders) Act, 1946 (20 of 1946), or under this Act or
under any other law applicable to the industrial establishment;
(ii) he has been on leave with full wages, earned in the previous
year;
(iii) he has been absent due to temporary disablement caused by
accident arising out of and in the course of his employment; and
1 Substituted by Act 48 of 1954.

248
Sec. 25E The Industrial Disputes Act, 1947 27
(iv) in the case of a female, she has been on maternity leave; so,
however, that the total period of such maternity leave does
not exceed twelve weeks.]
1[25C. Right of workmen laid off for compensation.-
Whenever a workman (other than a badli workman or a casual
workman) whose name is borne on the muster-rolls of an industrial
establishment and who has completed not less than one year of
continuous service under an employer is laid-off, whether
continuously or intermittently, he shall be paid by the employer for
all days during which he is so laid- off, except for such weekly
holidays as may intervene, compensation which shall be equal to fifty
per cent of the total of the basic wages and dearness allowance that
would have been payable to him had he not been so laid-off:
Provided that if during any period of twelve months, a workman

is so laid-off for more than forty-five days, no such compensation shall
be payable in respect of any period of the lay-off after the expiry of the
first forty-five days, if there is an agreement to that effect between the
workman and the employer:
Provided further that it shall be lawful for the employer in any

case falling within the foregoing proviso to retrench the workman in
accordance with the provisions contained in Section 25-F at any time
after the expiry of the first forty- five days of the lay-off and when he
does so, any compensation paid to the workman for having been laid-
off during the preceding twelve months may be set off against the
compensation payable for retrenchment.
Explanation. -”Badli workman” means a workman who is

employed in an industrial establishment in the place of another
workman whose name is borne on the muster rolls of the
establishment, but shall cease to be regarded as such for the purposes
249
of this section, if he has completed one year of continuous service in

the establishment.]
25D. Duty of an employer to maintain muster rolls of

workmen. - Notwithstanding that workmen in any industrial
establishment have been laid- off, it shall be the duty of every
employer to maintain for the purposes of this Chapter a muster-roll,
and to provide for the making of entries therein by workmen who
may present themselves for work at the establishment at the
appointed time during normal working hours.
25E. Workmen not entitled to compensation in certain cases. -

No compensation shall be paid to a workman who has been laid off-
(i) if he refuses to accept any alternative employment in the same

establishment from which he has been laid-off, or in any other
establishment belonging to the same employer situate in the
same town or village or situate within a radius of five miles
from the establishment to which he belongs, if, in the opinion
of the employer, such alternative employment does not call
for any special skill or previous experience and can be done
by the workman, provided that the wages which would
normally have been paid to the workman are offered for the
alternative employment also;
(ii) if he does not present himself for work at the establishment at
the appointed time during normal working hours at least once
a day;
250
28 The Industrial Disputes Act, 1947 Sec. 25F
(iii) if such laying-off is due to a strike or slowing-down of

production on the part of workmen in another part of the
establishment.
25F. Conditions precedent to retrenchment of workmen. - No
workman employed in any industry who has been in continuous
service for not less than one year under an employer shall be
retrenched by that employer until-
(a) the workman has been given one month's notice in writing
indicating the reasons for retrenchment and the period of
notice has expired, or the workman has been paid in lieu of
such notice, wages for the period of the notice:
1[***]
(b) the workman has been paid, at the time of retrenchment,

compensation which shall be equivalent to fifteen days'
average pay 2[for every completed year of continuous service]
or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate
Government 3[or such authority as may be specified by the
appropriate Government by notification in the Official
Gazette.]
4[25FF. Compensation to workmen in case of transfer of

undertakings.- Where the ownership or management of an
undertaking is transferred, whether by agreement or by operation of
law, from the employer in relation to that undertaking to a new
employer, every workman who has been in continuous service for not
less than one year in that undertaking immediately before such
transfer shall be entitled to notice and compensation in accordance
251
with the provisions of Section 25-F, as if the workman had been

retrenched:
Provided that nothing in this section shall apply to a workman in

any case where there has been a change of employers by reason of the
transfer, if-
(a) the service of the workman has not been interrupted by such
transfer;
(b) the terms and conditions of service applicable to the workman
after such transfer are not in any way less favourable to the
workman than those applicable to him immediately before the
transfer; and
(c) the new employer is, under the terms of such transfer or
otherwise, legally liable to pay to the workman, in the event of
his retrenchment, compensation on the basis that his service
has been continuous and has not been interrupted by the
transfer.]
5[25FFA. Sixty days' notice to be given of intention to close

down any undertaking. - (1) An employer who intends to close down
an undertaking shall serve, at least sixty days before the date on
which the intended closure is to become effective, a notice, in the
prescribed manner, on the appropriate Government stating clearly
the reasons for the intended closure of the undertaking:
1 Proviso to clause (a) omitted by the Industrial Disputes

(amendment) Act 49 of 1984
w.e.f. 18-8-1984.

3 Inserted by Act 36 of 1964.
252
Sec. 25FFF The Industrial Disputes Act, 1947 29
Provided that nothing in this section shall apply to-
(a) an undertaking in which -

(i) less than fifty workmen are employed, or
(ii) less than fifty workmen were employed on an average per
working day in the preceding twelve months,
(b) an undertaking set up for the construction of buildings, bridges,
roads, canals, dams or for other construction work or project.
(2) Notwithstanding anything contained in sub-section (1), the
appropriate Government may, if it is satisfied that owing to such
exceptional circumstances as accident in the undertaking or death of
the employer or the like it is necessary so to do, by order, direct that
provisions of sub-section (1) shall not apply in relation to such
undertaking for such period as may be specified in the order].
125FFF. Compensation to workmen in case of closing down of

undertaking.- (1) Where an undertaking is closed down for any
reason whatsoever, every workman who has been in continuous
service for not less than one year in that undertaking immediately
before such closure shall, subject to the provisions of sub-section (2),
be entitled to notice and compensation in accordance with the
provisions of Section 25-F, as if the workman had been retrenched:
Provided that where the undertaking is closed down on account

of unavoidable circumstances beyond the control of the employer, the
compensation to be paid to the workman under clause (b) of Section
25-F shall not exceed his average pay for three months.
2[Explanation. -An undertaking which is closed down by reason

merely of-
(i) financial difficulties (including financial losses); or

(ii) accumulation of undisposed of stocks; or
(iii) the expiry of the period of the lease or license granted to it; or
253
(iv) in a case where the undertaking is engaged in mining operations,

exhaustion of the minerals in the area in which such operations
are carried on,
shall not be deemed to be closed down on account of unavoidable

circumstances beyond the control of the employer within the
meaning of the proviso to this sub- section.]
3[(1-A) Notwithstanding anything contained in sub-section (1),

where an undertaking engaged in mining operations is closed down
by reason merely of exhaustion of the minerals in the area in which
such operations are carried on, no workman referred to in that sub-
section shall be entitled to any notice or compensation in accordance
with the provisions of Section 25-F, if-
(a) the employer provides the workman with alternative

employment with effect from the date of closure at the same
remuneration as he was entitled to receive, and on the same
terms and conditions of service as were applicable to him,
immediately before the closure;
(b) the service of the workman has not been interrupted by such
alternative employment; and
(c) the employer is, under the terms of such alternative
employment or otherwise, legally liable to pay to the workman,
in the event of
1 Ins. by Act 18 of 1956, sec. 3 (w.e.f. 28.11.1956)

254
30 The Industrial Disputes Act, 1947 Sec. 25G
his retrenchment, compensation on the basis that his service has been
continuous and has not been interrupted by such alternative
employment.
(1-B) For the purposes of sub-sections (1) and (1-A), the

expressions “minerals” and “mining operations” shall have the
meanings respectively assigned to them in clauses (a) and (d) of
Section 3 of the Mines and Minerals (Regulation and Development)
Act, 1957 (67 of 1957).]
(2) Where any undertaking set-up for the construction of

buildings, bridges, roads, canals, dams or other construction work is
closed down on account of the completion of the work within two
years from the date on which the undertaking had been set up, no
workman employed therein shall be entitled to any compensation
under clause (b) of Section 25-F, but if the construction work is not so
completed within two years, he shall be entitled to notice and
compensation under that section for every 1[completed year of
continuous service] or any part thereof in excess of six months.]
25G. Procedure for retrenchment. - Where any workman in an

industrial establishment, who is a citizen of India, is to be retrenched
and he belongs to a particular category of workmen in that
establishment, in the absence of any agreement between the employer
and the workman in this behalf, the employer shall ordinarily retrench
the workman who was the last person to be employed in that category,
unless for reasons to be recorded the employer retrenches any other
workman.
25H. Re-employment of retrenched workmen. - Where any

workmen are retrenched and the employer proposes to take into his
employ any persons, he shall, in such manner as may be prescribed,
give an opportunity 2[to the retrenched workmen who are citizens of
India to offer themselves for re- employment, and such retrenched
255
workmen] who offer themselves for re-employment shall have

preference over other persons.
25I. [Recovery of moneys due from employers under this

Chapter. - Repealed by the Industrial Disputes (Amendment and
Miscellaneous Provisions) Act, 1956 section 19 w.e.f. 10-3-1957.
25J. Effect of laws inconsistent with this Chapter. - (1) The

provisions of this Chapter shall have effect notwithstanding anything
inconsistent therewith contained in any other law including standing
orders made under the Industrial Employment (Standing Orders) Act,
1946 (20 of 1946):
3[Provided that where under the provisions of any other Act or

Rules, orders or notifications issued thereunder or under any
standing orders or under any award, contract of service or otherwise,
a workman is entitled to benefits in respect of any matter which are
more favourable to him than those to which he would be entitled
under this Act, the workman shall continue to be entitled to the more
favourable benefits in respect of that matter, notwithstanding that he
receives benefits in respect of other matters under this Act.]
(2) For the removal of doubts, it is hereby declared that nothing

contained in this Chapter shall be deemed to affect the provisions of
any other law for the time being in force in any State in so far as that law
provides for the settlement of

256
Sec. 25M The Industrial Disputes Act, 1947 31
industrial disputes, but the rights and liabilities of employers and

workmen in so far as they relate to lay-off and retrenchment shall be
determined in accordance with the provisions of this Chapter.]
1[Chapter V-B
Special provisions relating to lay-off, retrenchment and closure

in certain establishments
25K. Application of Chapter V-B.- (1) The provisions of this

Chapter shall apply to an industrial establishment (not being an
establishment of a seasonal character or in which work is performed
only intermittently) in which not less than 2[one hundred] workmen
were employed on an average per working day for the preceding
twelve months.
(2) If a question arises whether an industrial establishment is of

a seasonal character or whether work is performed therein only
intermittently, the decision of the appropriate Government thereon
shall be final.
25L. Definitions. - For the purposes of this Chapter, -
(a) “industrial establishment” means-

(i) a factory as defined in clause (m) of Section 2 of the Factories
Act, 1948 (63 of 1948);
(ii) a mine as defined in clause (j) of sub-section (1) of Section 2 of
the Mines Act, 1952 (35 of 1952); or
(iii) a plantation as defined in clause (f) of section 2 of the
Plantations Labour Act, 1951 (69 of 1951);
(b) notwithstanding anything contained in sub-clause (ii) of
clause
(a) of Section 2, -
257
(i) in relation to any company in which not less than fifty- one
per cent of the paid-up share capital is held by the Central
Government, or
(ii) in relation to any corporation not being a corporation referred
to in sub-clause (i) of clause (a) of section 2] established by or
under any law made by Parliament, the Central Government
shall be the appropriate Government.
25M. Prohibition of lay-off.- (1) No workman (other than a badli
workman or a casual workman) whose name is borne on the muster
rolls of an industrial establishment to which this Chapter applies shall
be laid-off by his employer except 3[with the prior permission of the
appropriate Government or such authority as may be specified by
that Government by notification in the Official Gazette (hereafter in
this section referred to as the specified authority), obtained on an
application made in this behalf, unless such lay-off is due to shortage
of power or to natural calamity, and in the case of a mine, such lay-
off is due also to fire, flood, excess of inflammable gas or explosion].
4[(2) An application for permission under sub-section (1) shall be

made by the employer in the prescribed manner stating clearly the
reasons for the intended lay-off and a copy of such application shall
also be served simultaneously on the workmen concerned in the
prescribed manner.

2 Substituted by Act No.46 of 1982 (w.e.f.) 7.4.1984.
3 Subs. by the Industrial Disputes (Amendment) Act 49 of
1984 (w.e.f. 18.8.1984). 4 Subs. by Act No.49 of 1984 (w.e.f.
18.8.1984)
258
32 The Industrial Disputes Act, 1947 Sec. 25M
(3) Where the workmen (other than badli workmen or casual

workmen) of an industrial establishment, being a mine, have been
laid-off under sub-section (1) for reasons of fire, flood or excess of
inflammable gas or explosion, the employer, in relation to such
establishment, shall, within a period of thirty days from the date of
commencement, of such lay-off, apply, in the prescribed manner, to
the appropriate Government or the specified authority for permission
to continue the lay-off.
(4) Where an application for permission under sub-section (1)
or sub- section (3) has been made, the appropriate Government or the
specified authority, after making such enquiry as it thinks fit and after
giving a reasonable opportunity of being heard to the employer, the
workmen concerned and the persons interested in such lay-off, may,
having regard to the genuineness and adequacy of the reasons for
such lay-off, the interests of the workmen and all other relevant
factors, by order and for reasons to be recorded in writing, grant or
refuse to grant such permission and a copy of such order shall be
communicated to the employer and the workmen.
or sub- section (3) has been made and the appropriate Government or
the specified authority does not communicate the order granting or
refusing to grant permission to the employer within a period of sixty
days from the date on which such application is made, the permission
applied for shall be deemed to have been granted on the expiration of
the said period of sixty days.
(6) An order of the appropriate Government or the specified
authority granting or refusing to grant permission shall, subject to the
provisions of sub- section (7), be final and binding on all the parties
concerned and shall remain in force for one year from the date of such
order.
(7) The appropriate Government or the specified authority may,
either on its own motion or on the application made by the employer or
259
any workman, review its order granting or refusing to grant

permission under sub-section (4) or refer the matter or, as the case
may be, cause it to be referred, to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal

under this sub-section, it shall pass an award within a period of thirty
days from the date of such reference.
(8) Where no application for permission under sub-section (1)

is made, or where no application for permission under sub-section (3)
is made within the period specified therein, or where the permission
for any lay-off has been refused, such lay-off shall be deemed to be
illegal from the date on which the workmen had been laid-off and the
workmen shall be entitled to all the benefits under any law for the time
being in force as if they had not been laid-off.
(9) Notwithstanding anything contained in the foregoing
provisions of this section, the appropriate Government may, if it is
satisfied that owing to such exceptional circumstances as accident in
the establishment or death of the employer or the like, it is necessary
so to do, by order, direct that the provisions of sub-section (1), or, as
the case may be, sub-section (3) shall not apply in relation to such
establishment for such period as may be specified in the order.]
1[(10) The provisions of Section 25-C (other than the second
proviso thereto) shall apply to cases of lay-off referred to in this
section.
1 Sub-S. (6) re-numbered as sub-sec. (10) by Act No.49 of 1984

(w.e.f. 18.8.1984).
260
Sec. 25N The Industrial Disputes Act, 1947 33
Explanation.- For the purposes of this section, a workman shall

not be deemed to be laid-off by an employer if such employer offers
any alternative employment (which in the opinion of the employer
does not call for any special skill or previous experience and can be
done by the workman) in the same establishment from which he has
been laid-off or in any other establishment belonging to the same
employer, situate in the same town or village, or situate within such
distance from the establishment to which he belongs that the transfer
will not involve undue hardship to the workman having regard to the
facts and circumstances of his case, provided that the wages which
would normally have been paid to the workman are offered for the
alternative appointment also.
1[25N. Conditions precedent to retrenchment of

workmen. - (1) No workman employed in any industrial
establishment to which this Chapter applies, who has been in
continuous service for not less than one year under an employer shall
be retrenched by that employer until, -
(a) the workman has been given three months' notice in writing
indicating the reasons for retrenchment and the period of
notice has expired, or the workman has been paid in lieu of
such notice, wages for the period of notice; and
(b) the prior permission of the appropriate Government or such
authority as may be specified by that Government by
notification in the Official Gazette (hereafter in this section
referred to as the specified authority) has been obtained on an
application made in this behalf.
(2) An application for permission under sub-section (1) shall be
made by the employer in the prescribed manner stating clearly the
reasons for the intended retrenchment and a copy of such application
shall also be served simultaneously on the workmen concerned in the
prescribed manner.
261

has been made, the appropriate Government or the specified
authority, after making such enquiry as it thinks fit and after giving a
reasonable opportunity of being heard to the employer, the workmen
concerned and the person interested in such retrenchment, may,
having regard to the genuineness and adequacy of the reasons stated
by the employer, the interests of the workmen and all other relevant
factors, by order and for reasons to be recorded in writing, grant or
refuse to grant such permission and a copy of such order shall be
communicated to the employer and the workmen.
(4) Where an application for permission has been made under sub-
section
(1) and the appropriate Government or the specified authority
does not communicate the order granting or refusing to grant
permission to the employer within a period of sixty days from the date
on which such application is made, the permission applied for shall
be deemed to have been granted on the expiration of the said period
of sixty days.
(5) An order of the appropriate Government or the specified
authority granting or refusing to grant permission shall, subject to the
provisions of sub- section (6), be final and binding on all the parties
concerned and shall remain in force for one year from the date of such
order.
(6) The appropriate Government or the specified authority may,
either on its own motion or on the application made by the employer or
any workman, review
262
34 The Industrial Disputes Act, 1947 Sec. 25O
its order granting or refusing to grant permission under sub-section

(3) or refer the matter or, as the case may be, cause it to be referred, to
a Tribunal for adjudication:


is made, or where the permission for any retrenchment has been
refused, such retrenchment shall be deemed to be illegal from the date
on which the notice of retrenchment was given to the workman and
the workman shall be entitled to all the benefits under any law for the
time being in force as if no notice had been given to him.
the establishment or death of the employer or the like, it is necessary
so to do, by order, direct that the provisions of sub-section (1) shall not
apply in relation to such establishment for such period as may be
specified in the order.
(9) Where permission for retrenchment has been granted under sub-
section
(3) or where permission for retrenchment is deemed to be granted
under sub- section (4), every workman who is employed in that
establishment immediately before the date of application for
permission under this section shall be entitled to receive, at the time of
retrenchment, compensation which shall be equivalent to fifteen days'
average pay for every completed year of continuous service or any part
thereof in excess of six months.]
1[25O. Procedure for closing down an undertaking.- (1) An

employer who intends to close down an undertaking of an industrial
263
establishment to which this Chapter applies shall, in the prescribed

manner, apply, for prior permission at least ninety days before the
date on which the intended closure is to become effective, to the
appropriate Government, stating clearly the reasons for the intended
closure of the undertaking and a copy of such application shall also be
served simultaneously on the representatives of the workmen in the
prescribed manner:
Provided that nothing in this sub-section shall apply to an

undertaking set up for the construction of buildings, bridges, roads,
canals, dams or for other construction work.
(2) Where an application for permission has been made under

sub-section (1), the appropriate Government, after making such
enquiry as it thinks fit and after giving a reasonable opportunity of
being heard to the employer, the workmen and the persons interested
in such closure may, having regard to the genuineness and adequacy
of the reasons stated by the employer, the interests of the general public
and all other relevant factors, by order and for reasons to be recorded
in writing, grant or refuse to grant such permission and a copy of such
order shall be communicated to the employer and the workmen.
(3) Where an application has been made under sub-section (1)
and the appropriate Government does not communicate the order
granting or refusing to grant permission to the employer within a
period of sixty days from the date on which such application is made
the permission applied for shall be deemed to have been granted on
the expiration of the said period of sixty days.
264
Sec. 25Q The Industrial Disputes Act, 1947 35
(4) An order of the appropriate Government granting or

refusing to grant permission shall, subject to the provisions of sub-
section (5) be final and binding on all the parties and shall remain in
force for one year from the date of such order.
(5) The appropriate Government may, either on its own
motion or on application made by the employer or any workman,
review its order granting or refusing to grant permission under sub-
section (2) or refer the matter to a Tribunal for adjudication:

is made within the period specified therein, or where the permission
for closure has been refused, the closure of the undertaking shall be
deemed to be illegal from the date of closure and the workmen shall
be entitled to all the benefits under any law for the time being in force
as if the undertaking had not been closed down.
the undertaking or death of the employer or the like it is necessary so
to do, by order, direct that the provisions of sub-section (1) shall not
apply in relation to such undertaking for such period as may be
specified in the order.
(8) Where an undertaking is permitted to be closed down under sub-
section
(2) or where permission for closure is deemed to be granted under
sub-section (3), every workman who is employed in that undertaking
immediately before the date of application for permission under this
section, shall be entitled to receive compensation which shall be
equivalent to fifteen days' average pay for every completed year of
continuous service or any part thereof in excess of six months.] 25P.
265
Special provisions as to restarting of undertakings closed down

before commencement of the Industrial Disputes (Amendment)
Act, 1976.- If the appropriate Government is of opinion in respect of
any undertaking or an industrial establishment to which this Chapter
applies and which closed down before the commencement of the
Industrial Disputes (Amendment) Act, 1976 (32
of 1976), -
(a) that such undertaking was closed down otherwise than on

account of unavoidable circumstances beyond the control of
the employer;
(b) that there are possibilities of restarting the undertaking;
(c) that it is necessary for the rehabilitation of the workmen
employed in such undertaking before its closure or for the
maintenance of supplies and services essential to the life of the
community to restart the undertaking or both; and
(d) that the restarting of the undertaking will not result in
hardship to the employer in relation to the undertaking,
it may, after giving an opportunity to such employer and workmen,
direct, by order published in the Official Gazette, that the
undertaking shall be restarted within such time (not being less than
one month from the date of the order) as many as specified in the
order.
25Q. Penalty for lay-off and retrenchment without previous

permission. -Any employer who contravenes the provisions of
Section 25M or
266
36 The Industrial Disputes Act, 1947 Sec. 25R
1[***] of Section 25-N shall be punishable with imprisonment for a

term which may extend to one month, or with fine which may extend
to one thousand rupees, or with both.
25R. Penalty for closure.- (1) Any employer who closes down an
undertaking without complying with the provisions of sub-section (1)
of Section 25-O shall be punishable with imprisonment for a term
which may extend to six months, or with fine which may extend to five
thousand rupees, or with both.
(2) Any employer who contravenes 2[an order refusing to grant

permission to close down an undertaking under sub-section (2) of
Section 25-O or a direction given under Section 25-P] shall be
punishable with imprisonment for a term which may extend to one
year, or with fine which may extend to five thousand rupees, or with
both, and where the contravention is a continuing one, with a further
fine which may extend to two thousand rupees for every day during
which the contravention continues after the conviction.
(3) 3[***]
25S. Certain provisions of Chapter V-A to apply to an

industrial establishment to which this Chapter applies.- The
provisions of Sections 25B, 25D, 25FF, 25G, 25H and 25J in Chapter V-
A shall, so far as may be, apply also in relation to an industrial
establishment to which the provisions of this Chapter apply.]
4[Chapter V-C Unfair Labour Practices
25T. Prohibition of Unfair Labour Practice. - No employer or

workman or a
trade union, whether registered under the Trade Unions Act, 1926 (16 of
1926) or not shall commit any unfair labour practice.
267
25U. Penalty for committing unfair labour practices. - Any

person who commits any unfair labour practice shall be punishable
with imprisonment for a term which may extend to six months or
with fine which may extend to one thousand rupees, or with both.]
Chapter VI Penalties
26. Penalty for illegal strikes and lock-outs.- (1) Any

workman who commences, continues or otherwise acts in
furtherance of, a strike which is illegal under this Act, shall be
month, or with fine which may extend to fifty rupees, or with both.
(2) Any employer who commences, continues, or otherwise acts

in furtherance of a lock-out which is illegal under this Act, shall be
month, or with fine which may extend to one thousand rupees, or with
both.
27. Penalty for instigation etc.- Any person who instigates or

incites others to take part in, or otherwise acts in furtherance of, a
strike or lock-out which is illegal under this Act, shall be punishable
with imprisonment for a term
1 Omitted by Act No. 49 of 1984, (w.e.f. 18.8.1984).
2 Subs. by Act No. 46 of 1982 (w.e.f. 21.8.1984)
3 Omitted by Act 46 of 1982, s. 15 (w.e.f. 21.8.1984).
4 Inserted Act No. 46 of 1982.
268
which may extend to six months, or with fine which may extend to one
thousand rupees, or with both.
28. Penalty for giving financial aid to illegal strikes and

lock-outs.- Any person who knowingly expends or applies any
money in direct furtherance or support of any illegal strike or lock-
out shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to one thousand
rupees, or with both.
1[29. Penalty for breach of settlement or award.- Any

person who commits a breach of any term of any settlement or award,
which is binding on him under this Act, shall be punishable with
imprisonment for a term which may extend to six months, or with
fine, or with both 2[and where the breach is a continuing one, with a
further fine which may extend to two hundred rupees for every day
during which the breach continues after the conviction for the first]
and the Court trying the offence, if it fines the offender, may direct that
the whole or any part of the fine realized from him shall be paid by way
of compensation, to any person who, in its opinion, has been injured
by such breach.]
30. Penalty for disclosing confidential information.- Any

person who wilfully discloses any such information as is referred to
in Section 21 in contravention of the provisions of that section shall, on
complaint made by or on behalf of the trade union or individual
business affected, be punishable with imprisonment for a term which
may extend to six months, or with fine, which may extend to one
thousand rupees, or with both.]
3[30A. Penalty for closure without notice. - Any employer who

closes down any undertaking without complying with the provisions
of Section 25FFA shall be punishable with imprisonment for a term
269
which may extend to six months, or with fine which may extend to
five thousand rupees, or with both.]
31. Penalty for other offences. - (1) Any employer who

contravenes the provisions of Section 33 shall be punishable with
imprisonment for a term which may extend to six months, or with fine
which may extend to one thousand rupees, or with both.
(2) Whoever contravenes any of the provisions of this Act or any
rule made thereunder shall, if no other penalty is elsewhere provided
by or under this Act for such contravention, be punishable with fine
which may extend to one hundred rupees.
Chapter VII
Miscellaneous
32. Offences by companies, etc.- Where a person committing

an offence under this Act is a company or other body corporate, or an
association of persons (whether incorporated or not), every director,
manager, secretary, agent or other officer or person concerned with the
management thereof shall, unless he proves that the offence was
committed without his knowledge or consent, be deemed to be guilty
of such offence.

270
1[33. Conditions of service, etc. to remain unchanged under certain

circumstances during pendency of proceedings. - During the
pendency of any conciliation proceedings before a conciliation officer
or a Board or of any proceeding before 2[an arbitrator or] a Labour
Court or Tribunal or National Tribunal in respect of an industrial
dispute, no employer shall,
(a) in regard to any matter connected with dispute, alter, to the

prejudice of the workmen concerned in such dispute, the
conditions of service applicable to them immediately before
the commencement of such proceedings; or
(b) for any misconduct connected with the dispute, discharge or
punish, whether by dismissal or otherwise, any workmen
concerned in such dispute,
save with the express permission in writing of the authority before

which the proceeding is pending.
(2) During the pendency of any such proceeding in respect of

an industrial dispute, the employer may, in accordance with the
standing orders applicable to a workman concerned in such dispute
3[or, where there are no such standing orders, in accordance with the
terms of the contract, whether express or implied between him and the
workman]-
(a) alter, in regard to any matter not connected with the dispute, the
conditions of service applicable to that workman immediately
before the commencement of such proceeding; or
(b) for any misconduct not connected with the dispute, discharge
or punish whether by dismissal or otherwise, that workman:
Provided that no such workman shall be discharged or dismissed,

unless he has been paid wages for one month and an application has
been made by the employer to the authority before which the
271
proceeding is pending for approval of the action taken by the

employer.
(3) Notwithstanding anything contained in sub-section (2) no

employer shall, during the pendency of any such proceeding in
respect of an industrial dispute, take any action against any protected
workman concerned in such dispute-
(a) by altering, to the prejudice of such protected workman, the
conditions of service applicable to him immediately before the
commencement of such proceeding; or
(b) by discharging or punishing, whether by dismissal or
otherwise such protected workman,
save with the express permission in writing of the authority before

which the proceeding is pending.
Explanation.- For the purposes of this sub-section, a “protected

workman” in relation to an establishment, means a workman, who
being 4[a member of the executive or other office bearer] of a
registered trade union connected with the establishment, is
recognized as such in accordance with rules made in this behalf.
(4) In every establishment, the number of workmen to be

recognized as protected workmen for the purposes of sub-section (3)
shall be one per cent of the total number of workmen employed
therein subject to a minimum number of
1 Subs. by Act 36 of 1956 (w.e.f. 10.3.1957).

272
Sec. 33B The Industrial Disputes Act, 1947 39
five protected workmen and a maximum number of one hundred

protected workmen and for this aforesaid purpose, the appropriate
Government may make rules providing for the distribution of such
protected workmen among various trade unions, if any, connected
with the establishment and the manner in which the workmen may be
chosen and recognized as protected workmen.
(5) Where an employer makes an application to a conciliation

officer, Board, 1[an arbitrator], a Labour Court, Tribunal or National
Tribunal under the proviso to sub-section (2) for approval of the action
taken by him, the authority concerned shall, without delay, hear such
application and pass, 2[within a period of three months from the date
of receipt of such application] such order in relation thereto as it
deems fit]:
3[Provided that where any such authority considers it necessary
or expedient so to do, it may, for reasons to be recorded in writing
extend such period by such further period as it may think fit:
Provided further that no proceedings before any such authority

shall lapse merely on the ground that any period specified in this sub-
section had expired without such proceedings being completed.]
4[33A. Special provision for adjudication as to whether

conditions of service etc. changed during pendency of proceeding.
- Where an employer contravenes the provisions of Section 33 during
the pendency of proceedings 5[before a conciliation officer, Board, an
arbitrator, a Labour Court, Tribunal or National Tribunal] any
employee aggrieved by such contravention, may make a complaint in
writing 6[in the prescribed manner, -
(a) to such conciliation officer or Board, and the conciliation officer

or Board shall take such complaint into account in mediating in,
and promoting the settlement of, such industrial dispute; and
273
(b) to such arbitrator, Labour Court, Tribunal, or National Tribunal

and on receipt of such complaint, the arbitrator, Labour Court,
Tribunal or National Tribunal as the case may be, shall
adjudicate upon the complaint as if it were a dispute referred to
or pending before it, in accordance with the provisions of this
Act and shall submit his or its award to the appropriate
Government and the provisions of this Act shall apply
accordingly.]
7[33B. Power to transfer certain proceedings- (1) The
appropriate Government may, by order in writing and for reasons to
be stated therein, withdraw any proceeding under this Act pending
before a Labour Court, Tribunal, or National Tribunal and transfer
the same to another Labour Court, Tribunal or National Tribunal, as
the case may be, for the disposal of the proceeding and the Labour
Court, Tribunal or National Tribunal to which the proceeding is so
transferred may, subject to special directions in the order of transfer,
proceed either de novo or from the stage at which it was so transferred:

2 Subs. by Act No.46 of 1982.

7 Ins. by Act No.36 of 1956 (w.e.f. 10.3.1957).
274
40 The Industrial Disputes Act, 1947 Sec. 33C
Provided that where a proceeding under Section 33 or Section

33A is pending before a Tribunal or National Tribunal, the
proceeding may also be transferred to a Labour Court.
(2) Without prejudice to the provisions of sub-section (1), any

Tribunal or National Tribunal, if so authorized by the appropriate
Government, may transfer any proceeding under Section 33 or Section
33A pending before it to any one of the Labour Courts specified for
the disposal of such proceedings by the appropriate Government by
notification in the Official Gazette and the Labour Court to which the
proceeding is so transferred shall dispose of the same.
1[33C. Recovery of money due from an employer.- (1) Where

any money is due to a workman from an employer under a settlement
or an award or under the provisions of 2[Chapter V-A or Chapter V-
B], the workman himself or any other person authorized by him in
writing in this behalf, or, in the case of the death of the workman, his
assignee or heirs may, without prejudice to any other mode of
recovery, make an application to the appropriate Government for the
recovery of the money due to him, and if the appropriate Government
is satisfied that any money is so due, it shall issue a certificate for that
amount to the Collector who shall proceed to recover the same in the
same manner as an arrear of land revenue:
Provided that every such application shall be made within one

year from the date on which the money became due to the workman
from the employer:
Provided further that any such application may be entertained

after the expiry of the said period of one year, if the appropriate
Government is satisfied that the applicant had sufficient cause for not
making the application within the said period.
(2) Where any workman is entitled to receive from the
275
employer any money or any benefit which is capable of being

computed in terms of money and if any question arises as to the
amount of money due or as to the amount at which such benefit
should be computed, then the question may, subject to any rules that
may be made under this Act, be decided by such Labour Court as may
be specified in this behalf by the appropriate Government 3[within a
period not exceeding three months:]
4[Provided that where the presiding officer of a Labour Court
considers it necessary or expedient so to do, he may, for reasons to be
recorded in writing, extend such period by such further period as he
may think fit.]
(3) For the purposes of computing the money value of a benefit,

the Labour Court may, if it so thinks fit, appoint a Commissioner who
shall after taking such evidence as may be necessary, submit a report
to the Labour Court and the Labour Court shall determine the
amount after considering the report of the Commissioner and other
circumstances of the case.
(4) The decision of the Labour Court shall be forwarded by it
to the appropriate Government and any amount found due by the
Labour Court may be recovered in the manner provided for in sub-
section (1).
(5) Where workmen employed under the same employer are
entitled to receive from him any money or any benefit capable of being
computed in terms of money, then, subject to such rules as may be
made in this behalf, a single

4 Inserted by the Industries Disputes (Amendment) Act 46 of 1982.
276
application for the recovery of the amount due may be made on

behalf of or in respect of any number of such workmen.
Explanation. - In this section “Labour Court” includes any Court

constituted under any law relating to investigation and settlement of
industrial disputes in force in any State.]
34. Cognizance of offences- (1) No Court shall take

cognizance of any offence punishable under this Act, or of the
abetment of any such offence, save on complaint made by or under the
authority of the appropriate Government.
(2) No Court inferior to that of 1[a Metropolitan Magistrate or a
Judicial Magistrate of the first class] shall try any offence punishable
under this Act.
35. Protection of persons.- (1) No person refusing to take

part or to continue to take part in any strike or lock-out which is illegal
under this Act shall, by reason of such refusal or by reason of any
action taken by him under this section, be subject to expulsion from
any trade union or society, or to any fine or penalty, or to deprivation
of any right or benefit to which he or his legal representatives would
otherwise be entitled, or be liable to be placed in any respect, either
directly or indirectly, under any disability or at any disadvantage as
compared with other members of the union or society anything to the
contrary in the rules of a trade union or society notwithstanding.
(2) Nothing in the rules of a trade union or society requiring the
settlement of disputes in any manner shall apply to any proceeding
for enforcing any right or exemption secured by this section, and in
any such proceeding the Civil Court may, in lieu of ordering a person
who has been expelled from membership of a trade union or society
to be restored to membership, order that he be paid out of the funds of
the trade union or society such sum by way of compensation or
damages as that Court thinks just.
277
2[36. Representation of parties. - (1) A workman who is a party

to a dispute shall be entitled to be represented in any proceeding
under this Act by-
(a) 3[any member of the executive or other office bearer] of a

registered trade union of which he is a member;
(b) 4[any member of the executive or other office bearer] of a
federation of trade unions to which the trade union referred to in
clause (a) is affiliated;
(c) where the worker is not a member of any trade union, by 5[any
member of the executive or other office bearer] of any trade
union connected with, or by any other workman employed in
the industry in which the worker is employed and authorized in
(2) An employer who is a party to a dispute shall be entitled
to be represented in any proceeding under this Act by-
(a) an officer of an association of employers of which he is a
member;

2 Subs. by Act No.48 of 1950, S.34 and sch. for the original section.
5 Subs. by Act 45 of 1971, S.6 for “an officer” (w.e.f. 5.12.1971).
278
(b) an officer of a federation of associations of employers to which

the association referred to in Clause (a) is affiliated;
(c) where the employer is not a member of any association of
employers, by an officer of any association of employers
connected with, or by any other employer engaged in, the
industry in which the employer is engaged and authorized in
(3) No party to a dispute shall be entitled to be represented by
a legal practitioner in any conciliation proceeding under this Act or
in any proceeding before a Court.
(4) In any proceeding 1[before a Labour Court, Tribunal or
National Tribunal] a party to a dispute may be represented by a legal
practitioner with the consent of the other parties to the proceedings and
2[with the leave of the Labour Court, Tribunal, or National Tribunal as
the case may be.
3[36A. Power to remove difficulties. - (1) If, in the opinion of the
appropriate Government, any difficulty or doubt arises as to the
interpretation of any provision of an award or settlement, it may refer
the question to such Labour Court, Tribunal or National Tribunal as it
may think fit.
(2) The Labour Court, Tribunal or National Tribunal to which

such question is referred shall, after giving the parties an opportunity
of being heard, decide such question and its decisions shall be final
and binding on all such parties.]
4[36B. Power to exempt.- Where the appropriate Government is

satisfied in relation to any industrial establishments or undertaking
or any class of industrial establishment or undertakings carried on by
a department of that Government that adequate provisions exist for the
investigation and settlement of industrial disputes in respect of
workmen employed in such establishment or undertaking or class of
279
establishments or undertakings, it may, by notification in the Official

Gazette, exempt, conditionally or unconditionally such establishment
or undertaking or class of establishments or undertakings from all or
any of the provisions of this Act.]
37. Protection of action taken under the Act. - No suit,

prosecution or other legal proceeding shall lie against any person for
anything which is in good faith done or intended to be done in
pursuance of this Act or any rules made thereunder.
38. Power to make rules. - (1) The appropriate Government
may, subject to the condition of previous publication, make rules for
the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the following
matters, namely: -
(a) the powers and procedure of conciliation officers, Boards,
Courts 5[Labour Courts, Tribunals, and National Tribunals]
including rules as to the summoning of witnesses, the
production of documents relevant to the subject-matter of an
inquiry or
1 Subs. by Act 36 of 1956, sec. 24, for “before a Tribunal” (w.e.f.

10.3.1957).
2 Subs. by Act 36 of 1956, sec. 24, for “with the leave of the
Tribunal” (w.e.f. 10.3.1957). 3 Ins. by Act No.36 of 1956 (w.e.f.
10.3.1957)
5 Subs. by Act No.36 of 1956 (w.e.f. 10.3.1957)
280
investigation, the number of members necessary to form a quorum

and the manner of submission of reports and awards;
1[(aa) the form of arbitration agreement, the manner in which it may be

signed by the parties, 2[the manner in which a notification may be
issued under sub-section (3-A) of section 10A] the powers of the
arbitrator named in the arbitration agreement and the procedure to
be followed by him;
(aaa) the appointment of assessors in proceedings under this Act;]
3[(ab) the constitution of Grievance Settlement Authorities referred to

in Section 9C, the manner in which industrial disputes may be
referred to such authorities for settlement, the procedure to be
followed by such authorities in the proceedings in relation to disputes
referred to them and the period within which such proceedings shall
be completed:]
(b) the constitution and functions of and the filling of vacancies in

Works Committees, and the procedure to be followed by such
Committees in the discharge of their duties;
(c) the allowances admissible to members of Court 4[and Boards
and presiding officers of Labour Courts, Tribunals and
National Tribunals] and to assessors and witnesses;
(d) the ministerial establishment which may be allotted to a Court,
Board, 5[Labour Court, Tribunal or National Tribunal] and
the salaries and allowances payable to members of such
establishment;
(e) the manner in which and the persons by and to whom notice
of strike or lock-out may be given and the manner in which
such notices shall be communicated;
(f) the conditions subject to which parties may be represented by
legal practitioners in proceedings under this Act before a
281
Court, 6[Labour Court, Tribunal or National Tribunal];

(g) any other manner which is to be or may be prescribed.
(3) Rules made under this section may provide that a
contravention thereof shall be punishable with fine not exceeding
fifty rupees.
7[(4) All rules made under this section shall, as soon as possible
after they are made, be laid down before the State Legislature or,
where the appropriate Government is the Central Government, before
both the Houses of Parliament.]
8[(5) Every rule made by the Central Government under this

section shall be laid, as soon as may be after it is made, before each
House of Parliament while it is in session for a total period of thirty
days which may be comprised in one session or in 9[two or more
successive sessions, and if, before the expiry of the session
aforesaid]
1 Ins. by Act No.36 of 1956 (w.e.f. 10.3.1957)
2 Ins. by Act No.36 of 1964 (w.e.f. 15.12.1964)

4 Subs. by Act 36 of 1956, sec. 26, for “Boards and Tribunals” (w.e.f.
10.3.1957).
5 Subs. by Act 36 of 1956, sec. 24, for “or
Tribunal” (w.e.f. 10.3.1957). 6 Ins. by Act 36 of
1956, sec. 26 (w.e.f. 10.3.1957).
7 Ins. by Act 36 of 1956, sec. 26 (w.e.f. 10.3.1957).
8 Ins. by Act 36 of 1956, sec. 20 (w.e.f. 19.12.1964).
9 Subs. by Act No. 32 of 1976, sec. 5, for certain words (w.e.f.

5.3.1976).
282
44 The Industrial Disputes Act, 1947 Schedule 39
both Houses agree in making any modifications in the rule, or both

Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything
previously done under that rule.]
1[39. Delegation of powers. - The appropriate Government

may, by notification in the Official Gazette, direct that any power
exercisable by it under this Act or rules made thereunder shall, in
relation to such matters and subject to such conditions, if any, as may
be specified in the direction, be exercisable also, --
(a) where the appropriate Government is Central Government, by

such officer or authority subordinate to the Central
Government or by the State Government, or by such officer or
authority subordinate to the State Government, as may be
specified in the notification; and
(b) where the appropriate Government is a State Government by
such officer or authority subordinate to the State Government as
may be specified in the notification.]
2[40. Power to amend Schedules.- (1) The appropriate

Government may, if it is of opinion that it is expedient or necessary in
the public interest so to do, by notification in the Official Gazette, add
to the First Schedule any industry, and on any such notification being
issued, the First Schedule shall be deemed to be amended accordingly.
(2) The Central Government may, by notification in the Official

Gazette, add to or alter or amend the Second Schedule or the Third
Schedule and on any such notification being issued, the Second
Schedule or the Third Schedule, as the case may be, shall be deemed to
be amended accordingly.
(3) Every such notification shall, as soon as possible after it is
283
issued, be laid before the Legislature of the State, if the notification

has been issued by a State Government, or before Parliament, if the
notification has been issued by the Central Government.]
3[The First Schedule [See Section 2(N) (VI)]
Industries which may be declared to be Public Utility Services

under sub-clause (vi) of clause (n) of section 2
1. Transport (other than railways) for the carriage of

passengers or goods,
4[by land or water];
2. Banking;
3. Cement;
4. Coal;
5. Cotton textiles;
6. Food stuffs;
7. Iron and Steel;
8. Defense establishments;
1 S u b s . by Act No. 36 of 1956 (w.e.f. 10.3.1957)
2 Subs. by Act No. 36 of 1956. (w.e.f. 10.3.1957)
3 Subs. by Act 36 of 1956, sec. 29, for the Schedule (w.e.f. 10.3.1957).
4 Subs. by Act 36 of 1964, sec. 22 for “by land, water or air” (w.e.f.
19.12.1964).
284
Schedule The Industrial Disputes Act, 1947 45
9. Service in hospitals and dispensaries;

10. Fire Brigade Service;
1[11. India Government Mints;
12. India Security Press;]
2[13. Copper Mining;
14. Lead Mining;

15. Zinc Mining;]
3[16. Iron Ore Mining;]
4[17. Service in any oilfield;]
5[***].
6[19. Service in the Uranium Industry;]
7[20. Pyrites Mining;
21. Security Paper Mill, Hoshangabad;]
8[22. Services in the Bank Note Press, Dewas;]
9[23. Phosphorite Mining;]
10[24. Magnesite Mining;]
11[25. Currency Note Press;]
12[26. Manufacture or production of mineral oil (crude oil), motor

and aviation spirit, diesel oil, Kerosene oil, fuel oil, diverse
hydrocarbon oils and their blends including synthetic fuels,
lubricating oils and the like;]
13[27. Service in the International Airports Authority of India.]
285
14[28. Industrial establishments manufacturing or producing

Nuclear Fuel and components, Heavy Water and Allied
Chemicals and Atomic Energy.]]
15[29. Processing or Production of Fuel Gases (Coal Gas, Natural Gas

and the like).]
The Second Schedule (See Section 7)
Matters within the Jurisdiction of Labour Courts
1. The propriety or legality of an order passed by an employer

under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including re-instatement
of, or grant of relief to, workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
1 Ins. by S. O. 2193, dated 30th June, 1965.

2 Added by S.O. 1444, dated 3rd May, 1966.
3 Ins. by S. O. 726, dated 25th February, 1967.

4 Ins. by S. O. 1776, dated 10th May, 1967.
5 Entry 18 omitted by Act 45 of 1971, sec 7 (w.e.f. 15-12-1971).
6 Ins. by S.O. 1471, dated 10th April, 1968.

7 Ins. by S. O. 2061, dated 30th May, 1970.
8 Ins. by S. O. 4697, dated 26th November, 1976.
9 Ins. by S. O. 47, dated 17th December, 1976.
10 Ins. by S. O. 2474, dated 4th September, 1980.
11 Ins. by S. O. 946, dated 7th March, 1981.
12 Ins. by S. O. 4207, dated 20th November, 1984.
13 Ins. by S. O. 1919, dated 8th July, 1987.
14 Ins. by S. O. 967, dated 8th April, 1995.
15 Added by S. O. 997 (E), dated 29th August, 2003.
286
46 The Industrial Disputes Act, 1947 Schedule
5. Illegality or otherwise of a strike or lock-out; and

6. All matters other than those specified in the Third
Schedule.]
The Third Schedule (See Section 7A)
Matters within the Jurisdiction of Industrial Tribunals
1. Wages, including the period and mode of payment;

2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing
orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalization;
10. Retrenchment of workmen and closure of establishment;
and
11. Any other matter that may be prescribed.]
The Fourth Schedule (See Section 9A)
Conditions of Service for change of which Notice is to be given
1. Wages, including the period and mode of payment;

2. Contribution paid, or payable, by the employer to any
provident fund or pension fund or for the benefit of the
workmen under any law for the time being in force;
3. Compensatory and other allowances;
4. Hours of work and rest intervals;
5. Leave with wages and holidays;
6. Starting alteration or discontinuance of shift working
287
otherwise than in accordance with standing orders;

7. Classification by grades;
8 Withdrawal of any customary concession or privilege or
change in usage;
9. Introduction of new rules of discipline, or alteration of

existing rules, except in so far as they are provided in
standing orders;
10. Rationalization, standardization or improvement of
plant or technique which is likely to lead to retrenchment
of workmen;
11. Any increases or reduction (other than casual) in the
number of persons employed or to be employed in any
occupation or process or department or shift, 1[not
occasioned by circumstances over which the employer
has no control].]
2[THE FIFTH SCHEDULE (SEE SECTION 2(RA)] UNFAIR

LABOUR PRACTICES
I. —ON THE PART OF EMPLOYERS AND TRADE UNIONS OF

EMPLOYERS
1. To interfere with, restrain from, or coerce, workmen in the
exercise of their right to organize, form, join or assist a trade union or to
engage in concerted activities for the purposes of collective bargaining
or other mutual aid or protection, that is to say—
(a) threatening workmen with discharge or dismissal, if they join
a trade union;
1 Subs. by Act 36 of 1964, sec. 23 for “not due to forced

matters” (w.e.f. 19.12.1964). 2 Ins. by Act 46 of 1982, sec. 23
(w.e.f. 21-8-1984).
288
Schedule The Industrial Disputes Act, 1947 47
(b) threatening a lock-out or closure, if a trade union is organized;

(c) granting wage increase to workmen at crucial periods of trade
union organization, with a view to undermining the efforts of
the trade union organization.
2. To dominate, interfere with or contribute support, financial
or otherwise, to any trade union, that is to say—
(a) an employer taking an active interest in organizing a trade
union of his workmen; and
(b) an employer showing partiality or granting favour to one of
several trade unions attempting to organize his workmen or
to its members, where such a trade union is not a recognized
trade union.
3. To establish employer sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade
union by discriminating against any workman, that is to say—
(a) discharging or punishing a workman, because he urged other
workmen to join or organize a trade union;
(b) discharging or dismissing a workman for taking part in any
strike (not being a strike which is deemed to be an illegal strike
under this Act);
(c) changing seniority rating of workmen because of trade union
activities;
(d) refusing to promote workmen to higher posts on account of
their trade union activities;
(e) giving unmerited promotions to certain workmen with a view
to creating discord amongst other workmen, or to undermine
the strength of their trade union;
(f) discharging office-bearers or active members of the trade
union on account of their trade union activities.
5. To discharge or dismiss workmen—
(a) by way of victimization;
(b) not in good faith, but in the colorable exercise of the employer’s
289
rights;
(c) by falsely implicating a workman in a criminal case on false
evidence or on concocted evidence;
(d) for patently false reasons;
(e) on untrue or trumped up allegations of absence without leave;
(f) in utter disregard of the principles of natural justice in the
conduct of domestic enquiry or with undue haste;
(g) for misconduct of a minor or technical character, without
having any regard to the nature of the particular misconduct or
the past record or service of the workman, thereby leading to
a disproportionate punishment.
6. To abolish the work of a regular nature being done by
workmen, and to give such work to contractors as a measure of
breaking a strike.
7. To transfer a workman mala fide from one place to another,
under the guise of following management policy.
8. To insist upon individual workmen, who are on a legal
strike to sign a good conduct bond, as a pre-condition to allowing
them to resume work.
9. To show favoritism or partiality to one set of workers regardless of
merit.
290
48 The Industrial Disputes Act, 1947 Schedule
10. To employ workmen as “badlis”, casuals or temporaries and

to continue them as such for years, with the object of depriving them
of the status and privileges of permanent workmen.
11. To discharge or discriminate against any workman for filing
charges or testifying against an employer in any enquiry or
proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement.
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the
recognized trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this
Act.
II.—ON THE PART OF WORKMEN AND TRADE UNION OF

WORKMEN.
1. To advise or actively support or instigate any strike deemed

to be illegal under this Act.
2. To coerce workmen in the exercise of their right to self-
organization or to join a trade union or refrain from joining any trade
union, that is to say—
(a) for a trade union or its members to picketing in such a manner
that non-striking workmen are physically debarred from
entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of
intimidation in connection with a strike against non-striking
workmen or against managerial staff.
3. For a recognized union to refuse to bargain collectively in
good faith with the employer.
4. To indulge in coercive activities against certification of a
bargaining representative.
291
5. To stage, encourage or instigate such forms of coercive

actions as willful “go slow”, squatting on the work premises after
working hours or “gherao” of any of the members of the managerial
or other staff.
6. To stage demonstrations at the residences of the employers
or the managerial staff members.
7. To incite or indulge in willful damage to employer’s property
connected with the industry.
8. To indulge in acts of force or violence or to hold out threats
of intimidation against any workman with a view to prevent him for
attending work.]
292
Rule 5 The Industrial Tribunal (Procedure) 49 Rules, 1949
THE INDUSTRIAL TRIBUNAL (PROCEDURE) RULES, 19491
In exercise of the power conferred by section 38 of the Industrial

Disputes Act, 1947 (14 of 1947), the Central Government makes the
following rules, the same having been published as required by sub-
section (1) of the said section, namely: -
1. These rules may be called The Industrial Tribunal

(Procedure) Rules, 1949.
2. The Industrial Tribunal constituted under the Ministry of
Labour, Notification No.LR-2 (205), dated the 13th June, 1949, may
entrust such cases or matters referred to it as it deems fit to one or
more members for enquiry and report.
3. The report under rules 2 shall be submitted to the Chairman
of the Tribunal. The Tribunal may withdraw any case or matter
referred to one or more members under rule 2 and transfer the same to
any other member or members.
4. The Tribunal shall, after considering the report and making

such further enquiry as it deems fit, deliver its award.
5. For the purpose of making any enquiry under these rules the
member or members, as the case may be, shall have all the powers of
the Tribunal under section 11 and the provisions of rules 14 to 21, 24,
30 and 31 shall apply to such enquiry as if the member or members
were the Tribunal.
1 Vide Ministry of Labour, Notification No. LR-2 (245), dated 3rd

September, 1949, published in the Gazette of India, Extra., dated
3rd December, 1949.
293
50 The Industrial Tribunal (Central Procedure) Rules, 1954
Rule 1
THE INDUSTRIAL TRIBUNAL (CENTRAL PROCEDURE) RULES,

19541
In exercise of the powers conferred by section 38 of the Industrial

Disputes Act, 1947 (14 of 1947), the Central Government hereby
makes the following Rules, the same having been previously
published as required by sub-section (1) of the said section namely:
1. These rules may be called The Industrial Disputes (Central

Procedure) Rules, 1954.
2. In these rules—
(a) “the Act” means the Industrial Disputes Act, 1947 (14 of 1947);
(b) “Chairman” means the Chairman of the Tribunal;
(c) “member” means a member of the Tribunal;
(d) “section” means a section of the Act;
(e) “Tribunal” means the Industrial Tribunal constituted under
section 7 consisting of two or more members.
2[3. In the case of a Tribunal where it consists of two or more

members, the Chairman may sit alone or with one or more members
to hear an application or complaint in writing under section 33 or
section 33A, as the case may be, for inquiry and report to the Tribunal
or entrust any such application or complaint to one or more members,
as he deems fit, for such enquiry and report.
4. The Chairman may withdraw any case or matters referred to

one or more members, under rule 3 and transfer the same to himself or
any other member or members.
5. The report under rule 3, where the enquiry is made by one
or more members, shall be submitted to the Chairman and where the
294
enquiry is by the Chairman sitting alone or with one or more

members, the report shall be submitted to the Tribunal:
Provided that in all cases, the final order on such application or

complaint shall be passed by the Tribunal after taking into
consideration the report submitted to it by the Chairman sitting singly
or with one or more members or by any other member or members.
6. The Tribunal shall, after considering the report submitted

to the Chairman under rule 5 and making such further enquiry, if any,
as it thinks fit, give its decision or award as the case may be.
7. For the purposes of making an enquiry under these rules

the Chairman or member or members, as the case may be, shall have
all the powers of the Tribunal under section 11 and the provisions of
rules 14 to 21, 24, 30 and 31 of the Industrial Disputes (Central) Rules,
1947, shall apply to such enquiry as if the Chairman or member or
members by themselves constituted the Tribunal.]
1 Vide S.R.O. 1793, dated 27th May, 1954, published in the

Gazette of India, Extra., Pt. II S. 3, p. 925, dated 27th May, 1954.
2 Subs. by S.R.O. 3534, dated 1st December, 1954.
295
52 The Industrial Disputes (Central) Rules, 1957 Rule 3
(i) in relation to an industry concerning railways, carried on by or

under the authority of a Department of the Central
Government, —
(a) in the case of establishments of a Zonal Railway, the General
Manager of that Railway shall be the „employer‟ in respect of
regular railway servants other than casual labour;
(b) in the case of an establishment independent of a Zonal
Railway, the officer in charge of the establishment shall be the
„employer‟ in respect of regular railway servants other than
casual labour; and
(c) the District Officer-in-charge or the Divisional Personnel
Officer or the Personnel Officer shall be the employer‟ in respect
of casual labour employed in a Zonal Railway or any other
railway establishment independent of a Zonal Railway.]
PART I
Procedure for reference of industrial disputes to boards of

conciliation, courts of enquiry, labour courts, industrial tribunals
or national tribunals
2. Application:-An application under sub-section (2) of

section 10 for the reference of an industrial dispute to a Board, Court,
Labour Court, Tribunal or National Tribunal shall be made in Form A
and shall be delivered personally or forwarded by registered post 1[to
the Secretary to the Government of India in the Ministry of Labour and
Employment (in triplicate)], the Chief Labour Commissioner
(Central), New Delhi, and the Regional Labour Commissioner
(Central), and the Assistant Labour Commissioner (Central)
concerned. The application shall be accompanied by a statement
setting forth: —
(a) the parties to the dispute;
(b) the specific matters in disputes;
296
(c) the total number of workmen employed in the

undertaking affected;
(d) an estimate of the number of workmen affected
or likely to be affected by the dispute; and
(e) the efforts made by the parties themselves to adjust
the dispute.
3. Attestation of application: -The application and the
statement accompanying it shall be signed: —
(a) in the case of an employer by the employer himself, or when
the employer is an incorporated company or other body
corporate, by the agent, manager or other principal officer of the
Corporation;
(b) in the case of workmen, either by the President and Secretary of
trade union of the workmen, or by five representatives of the
workmen duly authorized in this behalf at a meeting of the
workmen held for the purpose;
2[(c) in the case of an individual workman, by the workman himself
or by any officer of the trade union of which he is a member
or by
1 Subs. by G.S.R. 811, dated 3rd July, 1959.

2 Ins. by G.S.R. 1959, dated 30th May, 1968.
297
Rule 8 The Industrial Disputes (Central) Rules, 1957 53
another workman in the same establishment duly authorized by him

in this behalf:
Provided that such workman is not a member of a different trade

union.]
4. Notification of appointment of Board, Court, Labour

Court, Tribunal or National Tribunal: -The appointment of a Board,
Court, Labour Court, Tribunal or National Tribunal together with the
names of persons constituting the Board, Court, Labour Court,
Tribunal or National Tribunal shall be notified in the Official Gazette.
5. Notice to parties to nominate representatives:-(1) If the
Central Government proposes to appoint a Board, it shall send a notice
in Form B to the parties requiring them to nominate within a reasonable
time person to represent them on the Board.
(2) The notice to the employer shall be sent to the employer
personally or if the employer is an incorporated company or a body
corporate, to the agent, manager or other principal officer of such
company or body.
(3) The notice to the workmen shall be sent: —
(a) in the case of workmen who are members of a trade union, to the
President or Secretary of the trade union; and
(b) in the case of workmen who are not members of a trade union,
to any one of the five representatives of the workmen who
have attested the application made under rule 3; and in this
case a copy of the notice shall also be sent to the employer who
shall display copies thereof on notice boards in a conspicuous
manner at the main entrance to the premises of the
establishment.
Part II Arbitration Agreement
6. Arbitration Agreement:-An arbitration agreement for the
298
reference of an industrial dispute to an arbitrator or arbitrators shall

be made in Form C and shall be delivered personally or forwarded by
registered post 1[to the Secretary to the Government of India in the
Ministry of Labour, (in triplicate)] the Chief Labour Commissioner
(Central), New Delhi, and the Regional Labour Commissioner
(Central) and the [Assistant Labour Commissioner (Central)]
concerned. The agreement shall be accompanied by the consent, in
writing, of the arbitrator or arbitrators.
7. Attestation of the Arbitration Agreement: -The arbitration
agreement shall be signed: —
(a) in the case of an employer, by the employer himself, or when
the employer is an incorporated Company or other body
corporate, by the agent, manager, or other principal officer of
the Corporation.
2[(b) in the case of the workmen, by any officer of a trade union of
the workmen or by representatives of the workmen duly authorized
in this behalf at a meeting of the workmen held for the purpose.
3[(c) in the case of an individual workman, by the workman himself

or by any officer of a trade union of which he is member or by
1 Subs. by G.S.R. 398, dated 21st March, 1959.

299
54 The Industrial Disputes (Central) Rules, 1957 Rule 8A
another workman in the same establishment duly authorized by him

in this behalf:
Provided that such workman is not a member of a different trade

union]
Explanation: -In this rule “officer” means any of the following

officers, namely: -
(a) the President;

(b) the Vice-President;
(c) the Secretary (including the General Secretary);
(d) a Joint Secretary;
(e) any other officer of the trade union authorized in
this behalf by the President and Secretary of the
Union.
1[8A. Notification regarding arbitration agreement by

majority of each party:-Where an industrial dispute has been
referred to arbitration and the Central Government is satisfied that the
persons making the reference represent the majority of each party, it
shall publish a notification in this behalf in the Official Gazette for the
information of the employers and workmen who are not parties to the
arbitration agreement but are concerned in the dispute.]
Part III
Powers, procedure and duties of conciliation officers, boards,

courts, labour courts, tribunals, national tribunals and
arbitrators
8. Conciliation proceedings in public utility service: -2[(1)]

The Conciliation Officer, on receipt of a notice of a strike or lockout
given under rule
300
71 or rule 72, shall forthwith arrange to interview both the employer

and the workmen concerned with the dispute at such places and at
such times as he may deem fit and shall endeavor to bring about a
settlement of the dispute in question.
3[(2) Where the Conciliation Officer receives no notice of a strike

or lockout under rule 71 or rule 72 but he considers it necessary to
intervene in the dispute, he may give formal intimation in writing to
the parties concerned declaring his intention to commence
conciliation proceedings with effect from such date as may be
specified therein.]
9. Conciliation proceedings in non-public utility service:-

Where the Conciliation Officer receives any information about an
existing or apprehended industrial dispute which does not relate to
public utility service and he considers it necessary to intervene in the
dispute, he shall give formal intimation in writing to the parties
concerned declaring his intention to commence conciliation
proceedings with effect from such date as may be specified therein.
4[10A. Parties to submit statements:-The employer or the party

representing workmen 5[or in the case of individual workman, the
workman himself] involved in an industrial dispute shall forward a
statement setting forth the specific matters in dispute to the
Conciliation Officer concerned wherever his intervention in the
dispute is required.]
1 Ins. by G.S.R. 488, dated 16th March, 1965.

2 The original rule 9 re-numbered as sub rule (1) by G.S.R. 1220,
dated 7th October, 1960.
3 Added by G.S.R. 1220, dated 7th October, 1960.
4 Subs. by G.S.R. 857, dated 22nd June, 1961.
301
Rule 10B The Industrial Disputes (Central) Rules, 1957 55
1[10B. Proceeding before the Labour Court, Tribunal or

National Tribunal:-(1) While referring an industrial dispute for
adjudication to a Labour Court, Tribunal or National Tribunal, the
Central Government shall direct the party raising the dispute to file a
statement of claim complete with relevant documents, list of reliance
and witnesses with the Labour Court, Tribunal or National Tribunal
within fifteen days of the receipt of the order of reference and also
forward a copy of such statement to each one of the opposite parties
involved in the dispute.
(2) The Labour Court, Tribunal or National Tribunal after

ascertaining that copies of statement of claim are furnished to the
other side by party raising the dispute shall fix the first hearing on a
date not beyond one month from the date of receipt of the order of
reference and the opposite party or parties shall file their written
statement together with documents, list of reliance and witnesses
within a period of 15 days from the date of first hearing and
simultaneously forward a copy thereof to the other party.
(3) Where the Labour Court, Tribunal or National Tribunal, as
the case may be, finds that the party raising the dispute though
directed did not forward the copy of the statement of claim to the
opposite party or parties, it shall give direction to the concerned party
to furnish the copy of the statement to the opposite party or parties
and for the said purpose or for any other sufficient cause, extend the
time-limit for filing the statement under sub-rule (1) or written
statement under sub-rule (2) by an additional period of 15 days.
(4) The party raising a dispute may submit a rejoinder if it
chooses to do so, to the written statement(s) by the appropriate party
or parties within a period of fifteen days from the filing of written
statement by the latter.
(5) The Labour Court, Tribunal or National Tribunal, as the
case may be, shall fix a date for evidence within one month from the
date of receipt of the statements, documents, list of witnesses, etc.,
302
which shall be ordinarily within sixty days of the date on which the
dispute was referred for adjudication.
(6) Evidence shall be recorded either in Court or by affidavit but
in the case of affidavit the opposite party shall have the right to cross-
examine each of the deponents filing the affidavit. As the oral
examination of each witness proceeds, the Labour Court, Tribunal or
National Tribunal shall make a memorandum of the substance of what
is being deposed. While recording the evidence, the Labour Court,
Tribunal or National Tribunal shall follow the procedure laid down in
rule 5 of order XVIII of the First Schedule to the Code of Civil
Procedure, 1908 (5 of 1908).
(7) On completion of evidence either arguments shall be heard
immediately or a date shall be fixed for arguments/oral hearing
which shall not be beyond a period of fifteen days from the close of
evidence.
case may be, shall not ordinarily grant an adjournment for a period
exceeding a week at a time but in any case, not more than three
adjournments in all at the instance of the parties to the dispute:
Provided that the Labour Court, Tribunal or National Tribunal,
as the case may be, may for reasons to be recorded in writing, grant
an adjournment exceeding a week at a time but in any case, not more
than three adjournments at the instance of any one of the parties to
the dispute.
1 Subs. by G.S.R. 932, dated 18th August, 1984.
303
(9) In case any party defaults or fails to appear at any stage the
Labour Court, Tribunal or National Tribunal, as the case may be, may
proceed with the reference ex parte and decide the reference
application in the absence of the defaulting party:
Provided that the Labour Court, Tribunal or National Tribunal,
as the case may be, may on the application of either party filed before
the submission of the award revoke the order that the case shall
proceed ex-parte, if it is satisfied that the absence of the party was on
justifiable grounds.

case may be, shall submit its award to the Central Government within
one month from the date of oral hearing/arguments or within the
period mentioned in the order of reference, whichever is earlier.
(11) In respect of reference under section 2A, the Labour Court,
Tribunal or National Tribunal, as the case may be, shall ordinarily
submit its awards within a period of three months:
Provided that the Labour Court, Tribunal or National Tribunal
may, as and when necessary, extend the period of three months and
shall record its reasons in writing to extend the time for submission
of the award for another specified period.]
10. The Conciliation Officer may hold a meeting of the

representatives of both parties jointly or of each party separately.
11. The Conciliation Officer shall conduct the proceedings
expeditiously and, in such manner, as he may deem fit.
12. Place and time of hearing:-1[Subject to the provisions

contained in rules 10A and 10B, the sittings of a Board, Court, Labour
Court, Tribunal or National Tribunal or of an Arbitrator] shall be held
at such times and places as the Chairman or the Presiding Officer or
the Arbitrator, as the case may be, may fix and the Chairman,
Presiding Officer or Arbitrator, as the case may be, shall inform the
304
parties of the same in such manner as he thinks fit.

13. Quorum for Boards and Courts: -The quorum necessary to
constitute a sitting of a Board or Court shall be as follows:
Quorum
(i) In the case of a Board—
where the number of members is 3 2
where the number of members is 5 3
(ii) In the case of a Court—
where the number of members is not more than 2 1
where the numbers of members are more than 2 but 2
less than 5
where the number of members is 5 or more 3
14. Evidence: -A Board, Court, Labour Court, Tribunal or

National Tribunal or an arbitrator may accept, admit or call for
evidence at any stage of the proceedings before it/him and in such
manner as it/he may think fit.
15. Administration of oath: -Any member of a Board or Court
or presiding officer of a Labour Court. Tribunal or National Tribunal
or an arbitrator may administer an oath.
1 Ins. by G.S.R. 141, dated 31st December, 1957.
305
16. Summons:-A summons issued by a Board, Court, Labour

Court, Tribunal or National Tribunal shall be in Form D and may
require any person to produce before it any books, papers or other
documents and things in the possession of or under the control of
such person in any way relating to the matter under investigation or
adjudication by the Board, Court, Labour Court, Tribunal or National
Tribunal which the Board, Court, Labour Court, Tribunal or National
Tribunal thinks necessary for the purposes of such investigation or
adjudication.
17. Service of summons or notice:-Subject to the provisions

contained in rule 20, any notice, summons, process or order issued by
a Board, Court, Labour Court, Tribunal, National Tribunal or an
arbitrator empowered to issue such notice, summons, process or
order, may be served either personally or by registered post and in
the event of refusal by the party concerned to accept the said notice,
summons, process or order, the same shall be sent again under
certificate of posting.
18. Description of parties in certain cases: -Where in any
proceeding before a Board, Court, Labour Court, Tribunal or National
Tribunal or an Arbitrator, there are numerous persons arrayed on any
side, such persons shall be described as follows: —
(1) all such persons as are members of any trade union or
association shall be described by the name of such trade union
or association; and
(2) all such persons as are not members of any trade union or
association shall be described in such manner as the Board,
Court, Labour Court, Tribunal, National Tribunal or
Arbitrator, as the case may be, may determine.
19. Manner of service in the case of numerous persons as
parties to a dispute:-(1) Where there are numerous persons as parties
to any proceeding before a Board, Court, Labour Court, Tribunal or
306
National Tribunal or an Arbitrator and such persons are members of

any trade union or association, the service of notice on the Secretary, or
where there is no Secretary, on the principal officer, of the trade union
or association shall be deemed to be service on such persons.
proceedings before a Board. Court, Labour Court, Tribunal or National
Tribunal or an Arbitrator and such persons are not members of any
trade union or association, the Board, Court, Labour Court, Tribunal,
National Tribunal or Arbitrator, as the case may be, shall, where
personal service is not practicable, cause the service of any notice to
be made by affixing the same at or near the main entrance of the
establishment concerned.
(3) A notice served in the manner specified in sub-rule (2) shall
also be considered as sufficient in the case of such workmen as cannot
be ascertained and found.
20. Procedure at the first sitting: -At the first sitting of a

Board, Court, Labour Court, Tribunal or National Tribunal, the
Chairman or the Presiding Officer, as the case may be, shall call upon
the parties in such order as he may think fit to state their case.
21. Board, Court, Labour Court, Tribunal, National
Tribunal or Arbitrator may proceed ex parte: -If without sufficient
cause being shown, any
307
party to proceedings before a Board, Court, Labour Court, Tribunal,

National Tribunal or Arbitrator fails to attend or to be represented,
the Board, Court, Labour Court, Tribunal, National Tribunal or
Arbitrator may proceed, as if the party had duly attended or had been
represented.
22. Power of entry and inspection:-A Board, or Court, or any

member thereof, or a Conciliation Officer, a Labour Court, Tribunal or
National Tribunal or any person authorized in writing by the Board,
Court, Labour Court, Tribunal or National Tribunal in this behalf
may, for the purposes of any conciliation, investigation, enquiry or
adjudication entrusted to the Conciliation Officer, Board, Court,
Labour Court, Tribunal or National Tribunal under the Act, at any
time between the hours of sunrise and sunset and in the case of a
person authorized in writing by a Board, Court, Labour Court,
Tribunal or National Tribunal after he has given reasonable notice,
enter any building, factory, workshop, or other place or premises
whatsoever, and inspect the same or any work, machinery, appliance
or article therein or interrogate any person therein in respect of
anything situated therein or any matter relevant to the subject-matter
of the conciliation, investigation, enquiry or adjudication.
23. Power of Boards, Courts, Labour Courts, Tribunals and
National Tribunals:-In addition to the powers conferred by the Act,
Boards, Courts, Labour Courts, Tribunals and National Tribunals
shall have the same powers as are vested in a Civil Court under the
Code of Civil Procedure, 1908 (5 of 1908), when trying a suit, in respect
of the following matters, namely:—
(a) discovery and inspection;
(b) granting adjournment;
(c) reception of evidence taken on affidavit,
and the Board, Court, Labour Court, Tribunal, or National Tribunal
may summon and examine any person whose evidence appears to it
308
to be material and shall be deemed to be a Civil Court within the

meaning of sections 480 and 482 of the Code of Criminal Procedure,
1898 (5 of 1898)1.
24. Assessors:-Where assessors are appointed to advise a

Tribunal or National Tribunal under sub-section (4) of section 7A or
sub-section (4) of section 7B or by the Court, Labour Court, Tribunal
or National Tribunal under sub- section (5) of section 11, the Court,
Labour Court, Tribunal or National Tribunal, as the case may be, shall,
in relation to proceeding before it, obtain the advice of such assessors,
but such advice shall not be binding on it.
25. Fees for copies of awards or other documents of Labour
Court, Tribunal or National Tribunal:-2[(1) Fees for making a copy
of an award or an order of a Labour Court, Tribunal or National
Tribunal or any document filed in any proceedings before a Labour
Court, Tribunal or National Tribunal shall be charged at the rate of
Re. 1 per page.]
(2) For certifying a copy of any such award or order or
document, a fee of Re. 1 shall be payable.
(3) Copying and certifying fees shall be payable in cash in
advance.
(4) Where a party applies for immediate delivery of a copy of any
such award or order or document, an additional fee equal to one-half of
the fee leviable under this rule shall be payable.
1 Now see the Code of Criminal Procedure, 1973 (2 of 1974.

2 Subs. by G.S.R. 116, dated 3rd February, 1987.
309
26. Decision by majority: -All questions arising for decision at

any meeting of a Board or Court, save where the Court consists of one
person shall be decided by a majority of the votes of the members
thereof (including the Chairman) present at the meeting. In the event
of an equality of votes the Chairman shall also have a casting vote.
1[28. Correction of errors: -A Board, Court, Labour Court,

Tribunal, National Tribunal or Arbitrator may at any time correct any
clerical mistake or error arising from an accidental slip or omission in
any proceedings, report, award or decision either of its or his own
motion or on application of any of the parties.]
29. Right of representatives: -The representatives of the

parties appearing before a Board, Court, Labour Court, Tribunal or
National Tribunal or an Arbitrator shall have the right of
examination, cross-examination and of addressing the Board, Court,
Labour Court, Tribunal or National Tribunal or Arbitrator when an
evidence has been called.
30. Proceedings before a Board, Court, Labour Court,

Tribunal or National Tribunal: -The proceedings before a Board,
Court, Labour Court, Tribunal or National Tribunal shall be held in
public:
Provided that the Board, Court, Labour Court, Tribunal or

National Tribunal may at any stage direct that any witness shall be
examined or its proceedings shall be held in camera.
Part IV
Remuneration of chairmen and members of courts, presiding

officers of labour courts, tribunals and national tribunals,
assessors and witnesses
31. Travelling allowance:-The Chairman or a member of a
310
Board or Court, or the Presiding Officer or an Assessor of a Labour

Court, Tribunal or National Tribunal, if a non-official, shall be entitled
to draw travelling allowance and halting allowance, for any journey
performed by him in connection with the performance of his duties,
at the rates admissible and subject to the conditions applicable to a
Government servant of the first grade under the Supplementary Rules
issued by the Central Government from time to time.
32. Fees: -The Chairman and a member of a Board or Court,
the Presiding Officer and an Assessor of a Labour Court, Tribunal or
National Tribunal wherever he is not a salaried officer of Government
may be granted such fees as may be sanctioned by the Central
Government in each case.
33. Expenses of witnesses:-Every person who is summoned

and duly attends or otherwise appears as a witness before a Board,
Court, Labour Court, Tribunal or National Tribunal or an Arbitrator
shall be entitled to an allowance for expenses according to the scale
for the time being in force with respect to witnesses in civil courts in
the State where the investigation, enquiry, adjudication or arbitration
is being conducted.
1 Subs. by G.S.R. 1151, dated 11th October, 1974.
311
Part V Notice of Change
34. Notice of Change: -Any employer intending to effect any

change in the conditions of service applicable to any workmen in
respect of any matter specified in the Fourth Schedule 1[to the Act] shall
give notice of such intention in Form E. 2[The notice shall be displayed
conspicuously but the employer on a notice board at the main
entrance to the establishment in the Manager’s Office:
Provided that where any registered trade union of workmen

exists, a copy of the notice shall also be served by registered post on the
secretary of such union].
3[***]
Part VI representation of parties
36. Form of authority under section 36: -The authority in

favour of a person or persons to represent a workman or group of
workmen or an employer in any proceeding under the Act shall be in
Form F.
37. Parties bound by acts of representative: -A party
appearing by a representative shall be bound by the acts of that
representative.
Part VII works committee
38. Constitution: -Any employer to whom an order made under sub-

section
(1) of section 3 relates shall forthwith proceed to constitute a Works
Committee in the manner prescribed in this part.
39. Number of members: -The number of members
312
constituting the Committee shall be fixed so as to afford representation

to the various categories, groups and classes of workmen engaged in,
and to the sections, shops or departments of the establishment:
Provided that the total number of members shall not exceed twenty:
Provided further that the number of representatives of the

workmen shall not be less than the number of representatives of the
employer.
40. Representatives of employer: -Subject to the provisions of

these rules, the representatives of the employer shall be nominated by
the employer and shall, as far as possible, be officials in direct touch
with or associated with the working of the establishment.
41. Consultation with trade unions:-(1) Where any workmen
of an establishment are members of a registered trade union, the
employer shall ask the union to inform him in writing—
(a) how many of the workmen are members of the union; and
(b) how their membership is distributed among the sections,
shops or departments of the establishment.
(2) Where an employer has reason to believe that the
information furnished to him under sub-rule (1) by any trade union is
false, he may, after informing the union, refer the matter to the
Assistant Labour Commissioner (Central) concerned for his decision;
and the Assistant Labour Commissioner (Central)] after hearing the
parties shall decide the matter and his decision shall be final.
1 Ins. by G.S.R. 402, dated 31st March, 1960.

2 Ins. by G.S.R. 402, dated 31st March, 1960.
3 Rule 35 omitted by G.S.R. 402, dated 31st March, 1960.
313
42. Groups of workmen’s representatives: -On receipt of the

information called for under rule 41, the employer shall provide for the
election of workmen’s representatives on the Committee in two
groups—
(1) those to be elected by the workmen of the establishment who
are members of the registered trade unions, and
(2) those to be elected by the workmen of the establishment who
are not members of the registered trade union or unions,
bearing the same proportion to each other as the union members in
the establishment bear to the non-members:
Provided that where more than half the workmen are members of
the union or any one of the unions, no such division shall be made:
Provided further that where a registered trade union neglects or

fails to furnish the information called for under sub-rule (1) or rule 41
within one month of the date of the notice requiring it to furnish such
information such union shall for the purpose of this rule be treated as
if it did not exist:
Provided further that where any reference has been made by the
employer under sub-rule (2) of rule 41, the election shall be held on
receipt of the decision of the Assistant Labour Commissioner
(Central)].
43. Electoral constituencies: -Where under rule 42 the

workmen’s representatives are to be elected in two groups, the workmen
entitled to vote shall be divided into two electoral constituencies, the
one consisting of those who are members of a registered trade union
and the other of those who are not:
Provided that the employer may, if he thinks fit, sub-divide the
1[electoral constituency or constituencies, as the case may be] and
direct that workmen shall vote in either by groups, sections, shops or
departments.
314
44. Qualification of candidates for election: -Any workman

of not less than 19 years of age and with a service of not less than one
year in the establishment may if nominated as provided in these rules,
be a candidate for election as a representative of the workmen on the
Committee:
Provided that the service qualification shall not apply to the first
election in an establishment which has been in existence for less than
a year.
2[Explanation: A workman who has put in a continuous service

of not less than one year in two or more establishments belonging to
the same employer shall be deemed to have satisfied the service
qualification prescribed under this rule.]
45. Qualifications for voters: -All workmen, 3[***] who are not
less than 18 years of age and who have put in not less than 6 months‟
4[continuous] service in the establishment shall be entitled to vote in
the election of the representative of workmen.
5[Explanation: A workman who has put in a continuous service
of not less than 6 months in two or more establishments belonging to
the same employer shall be deemed to have satisfied the service
qualification prescribed under this rule.]
1 Subs.by G.S.R. 1253, dated 3rd August, 1966.

2 Added by G.S.R. 1078, dated 4th August, 1962.
3 Omitted by G.S.R. 1078, dated 4th August, 1962.
315
46. Procedure for election:-(1) The employer shall fix a date as

the closing date for receiving n o m i n a t i o n s from candidates for
election as workmen’s representatives on the Committee.
(2) For holding the election, the employer shall also fix a date
which shall not be earlier than three days and later than [fifteen] days
after the closing date for receiving nominations.
(3) The dates so fixed shall be notified at least seven days in
advance to the workmen and the registered trade union or unions
concerned. Such notice shall be affixed on the notice board or given
adequate publicity amongst the workmen. The notice shall specify the
number of seats to be elected by the groups, sections, shops or
departments and the number to be elected by the members of the
registered trade union or unions and by the non-members.
(4) A copy of such notice shall be sent to the registered trade
union or unions concerned.
47. Nomination of candidates for election:-(1) Every
nomination shall be made on a nomination paper in form „G‟ copies
of which shall be supplied by the employer to the workmen requiring
them.
(2) Each nomination paper shall be signed by the candidate to
whom it relates and attested by at least two other voters belonging to
the group, section, shop or department the candidate seeking election
will represent, and shall be delivered to the employer.
48. Scrutiny of nomination papers:-(1) On the day following

the last day fixed for filing nomination papers, the nomination papers
shall be scrutinized by the employer in the presence of the candidates
and the attesting persons and those which are not valid shall be
rejected.
(2) For the purpose of sub-rule (1), a nomination paper shall be

held to be not valid if (A) the candidate nominated is ineligible for
316
membership under rule 44 or (B) the requirements of rule 47 have not

been complied with:
Provided that where a candidate or an attesting person is unable

to be present at the time of scrutiny, he may send a duly authorized
nominee for the purpose.
1[48A. Withdrawal of candidates validly nominated: -Any

candidate whose nomination for election has been accepted may
withdraw his candidature within 48 hours of the completion of
scrutiny of nomination papers].
49. Voting in election:-(1) If the number of candidates who

have been validly nominated is equal to the number of seats, the
candidates shall be forthwith declared duly elected.
(2) If in any constituency the number of candidates is more than
the number of seats allotted to it, voting shall take place on the day
fixed for election.
(3) The election shall be held in such manner as may be
convenient for each electoral constituency.
(4) The voting shall be conducted by the employer, and if any
of the candidates belong to a union such of them as the union may
nominate shall be associated with the election.
(5) Every workman entitled to vote at an electoral constituency
shall have as many votes as there are seats to be filled in the
constituency:
317
Provided that each voter shall be entitled to cast only one vote in
favour of any one candidate.
50. Arrangements for election: -The employer shall be

responsible for all arrangements in connection with the election.
51. Officers of the Committee:-(1) The Committee shall have
among its office bearers a Chairman, a Vice-Chairman, a Secretary
and a Joint Secretary. The Secretary and the Joint Secretary shall be
elected every year.
1[(2) The Chairman shall be nominated by the employer from
amongst the employer’s representatives on the Committee and he
shall, as far as possible, be the head of establishment.
(2A) The Vice-Chairman shall be elected by the members on the

Committee representing the workers, from amongst themselves:
Provided that in the event of equality of votes in the election of

the Vice- Chairman, the matter shall be decided by draw of a lot.]
(3) The Committee shall elect the Secretary and the Joint Secretary
provided that where the Secretary is elected from amongst the
representatives of the employers, the Joint Secretary shall be elected
from amongst the representatives of the workmen and vice versa:
Provided that the post of the Secretary or the Joint Secretary, as

the case may be, shall not be held by a representative of the employer or
the workmen, for two consecutive years:
2[Provided that the representatives of the employer shall not take

part in the election of the Secretary or Joint Secretary, as the case may
be, from amongst the representatives of the workmen and only the
representatives of the workmen shall be entitled to vote in such
elections.]
318
3[(4) In any election under sub-rule (3), in the event of equality of

votes, the matter shall be decided by a draw of lot.]
52. Term of office: -4[(1) The term of office of the

representatives on the Committee other than a member chosen to fill
a casual vacancy shall be two years.]
(2) A member chosen to fill a casual vacancy shall hold office
for the unexpired term of his predecessor.
(3) A member who without obtaining leave from the
Committee, fails to attend three consecutive meetings of the
Committee shall forfeit his membership.
5[53. Vacancies:-In the event of workmen’s representative ceasing

to be a member under sub-rule (3) of rule 52 or ceasing to be
employed in the establishment or in the event of his ceasing to
represent the trade or vocation he was representing, or resignation or
death, his successor shall be elected in accordance with the provisions
of this Part from the same category, group, section, shop or
department to which the member vacating the seat belonged.]
54. Power to co-opt: -The Committee shall have the right to

co-opt in a consultative capacity person employed in the establishment
having particular or
2 I n s . by G.S.R. 289, dated 2nd March, 1982 (w.e.f. 13-3-1982).
3 I n s . by G.S.R. 289, dated 2nd March, 1982 (w.e.f. 13-3-1982).

319
special knowledge of a matter under discussion. Such co-opted

member shall not be entitled to vote and shall be present at meetings
only for the period during which the particular question is before the
Committee.
55. Meetings:-(1) The Committee may meet as often as

necessary but not less often than once in three months (a quarter).
(2) The Committee shall, at its first meeting regulate its own
procedure.
56. Facilities for meeting, etc.: -1[(1)] The employer shall

provide accommodation for holding meetings of the Committee. He
shall also provide all necessary facilities to the Committee and to the
members thereof for carrying out the work of the Committee. The
Committee shall ordinarily meet during working hours of the
establishment concerned on any working day and the representative of
the workmen shall be deemed to be on duty while attending the
meeting.
2[(2) The Secretary of the Committee may, with the prior
concurrence of the Chairman, put up notice regarding the work of the
Committee on the notice board of the establishment.]
3[56A. Submission of returns: -The employer shall submit half-

yearly returns as in Form G-I in triplicate to the Assistant Labour
Commissioner (Central) concerned not later than the 20th day of the
month following the half- year.]
57. Dissolution of Works Committee:-The Central

Government, or where the power under section 3 has been delegated
to any officer or authority under section 39, such officer or authority
may, after making such inquiry as it or he may deem fit, dissolve any
Works Committee at any time, by an order in writing, if he or it is
satisfied that the Committee has not been constituted in accordance
with these rules or that not less than two-thirds of the number of
320
representatives of the workmen have, without any reasonable

justification failed to attend three consecutive meetings of the
Committee or that the Committee has, for any other reason, ceased to
function:
Provided that where a Works Committee is dissolved under this

rule, the employer may, and if so, required by the Central Government
or, as the case may be, by such officer or authority shall, take steps to re-
constitute the Committee in accordance with these rules.
Part VIII Miscellaneous
58. Memorandum of settlement:-(1) A settlement arrived at

in the course of conciliation proceedings or otherwise, shall be in form
„H‟.
(2) The settlement shall be signed by—
(a) in the case of an employer, by the employer himself, or by his
authorized agent, or when the employer is an incorporated
company or other body corporate, by the agent, manager, or
other principal officer of the corporation:
4[(b) in the case of the workmen, by any officer of a trade union of the
workmen or by five representatives of the workmen duly
1 Rules 56 re-numbered as sub-rule (1) thereof by G.S.R. 1078,

dated 4th August, 1962.
3 Added. by G.S.R. 1078, dated 4th August, 1962.
321
authorized in this behalf at a meeting of the workmen held for the

purpose;]
1[(c) in the case of the workman in an industrial dispute under

section 2A of the Act, by the workman concerned.]
Explanation: In this rule “officer” means any of the following

officers, namely: —
(a)the President;
(b) the Vice-President;
(c) the Secretary (including the General Secretary);
(d) a Joint Secretary;
(e) any other officer of the trade union authorized in
this behalf by the President and Secretary of the
Union.]
(3) Where a settlement is arrived at in the course of conciliation
proceeding, the Conciliation Officer shall send a report thereof to the
Central Government together with a copy of the memorandum of
settlement signed by the parties to the dispute.
(4) Where a settlement is arrived at between an employer and
his workmen otherwise than in the course of conciliation proceeding
before a Board or a Conciliation Officer, the parties to the settlement
shall jointly send a copy thereof to the Central Government, the Chief
Labour Commissioner (Central), New Delhi, and the Regional Labour
Commissioner (Central) and to the [Assistant Labour Commissioner
(Central)] concerned.
59. Complaints regarding change of conditions of service,
etc.: - (1) Every complaint under section 33A of the Act shall be
presented in triplicate in Form „I‟ and shall be accompanied by as many
copies of the complaint as there are opposite parties to the complaint.
(2) Every complaint under sub-rule (1) shall be verified at the
foot by the workmen making it or by some other persons proved to
322
the satisfaction of the Labour Court, Tribunal or National Tribunal to

be acquainted with the facts of the case.
(3) The person verifying shall specify, by references to the
numbered paragraphs of the complaint, what he verifies of his own
knowledge and what he verifies upon information received and
believed to be true.
(4) The verification shall be signed by the person making it and
shall state the date on which and the place at which it was signed.
60. Application under section 33:-(1) An employer intending
to obtain the express permission in writing of the Conciliation Officer,
Board, Labour Court, Tribunal or National Tribunal as the case may
be, under sub-section (1) or sub- section (3) of section 33 shall present
an application in Form J in triplicate to such Conciliation Officer,
Board, Labour Court, Tribunal or National Tribunal and shall file
along with the application as many copies thereof as there are
opposite parties.
(2) An employer seeking the approval of the Conciliation
Officer, Board, Labour Court, Tribunal or National Tribunal, as the
case may be, of any action taken by him under clause (A) or clause (B)
of sub-section (2) of section 33 shall present an application in Form K in
triplicate to such Conciliation Officer, Board, Labour Court, Tribunal
or National Tribunal and shall file along with the application as many
copies thereof as there are opposite parties.
1 Ins. by G.S.R. 908, dated 2nd June, 1967.
323
(3) Every application under sub-rule (1) or sub-rule (2) shall be

verified at the foot by the employer making it or by some other person
proved to the satisfaction of the Conciliation Officer, Board, Labour
Court, Tribunal or National Tribunal to be acquainted with the facts of
the case.
(4) The person verifying shall specify by reference to the
numbered paragraphs of the application, what he verifies of his own
knowledge and what he verifies upon information received and
believed to be true.
(5) The verification shall be signed by the person making it and
shall state the date on which and the place at which it was verified.
61. Protected workmen:-(1) Every registered trade union
connected with an industrial establishment, to which the Act applies,
shall communicate to the employer before the 1[30th April] every year,
the names and addresses of such of the officers of the union who are
employed in that establishment and who, in the opinion of the union,
should be recognized as “protected workmen”. Any change in the
incumbency of any such officer shall be communicated to the
employer by the union within fifteen days of such change.
(2) The employer shall, subject to section 33, sub-section (4),
recognize such workmen to be “protected workmen” for the purposes
of sub-section (3) of the said section and communicate to the union, in
writing, within fifteen days of the receipt of the names and addresses
under sub-rule (1), the list of workmen recognized as protected
workmen 2[for the period of twelve months from the date of such
communication].
(3) Where the total number of names received by the employer
under sub- rule (1) exceeds the maximum number of protected
workmen, admissible for the establishment, under section 33, sub-
section (4), the employer shall recognize as protected workmen only
such maximum number of workmen:
324
Provided that, where there is more than one registered trade

union in the establishment, the maximum number shall be so
distributed by the employer among the unions that the numbers of
recognized protected workmen in individual unions bear roughly the
same proportion to one another as the membership figures of the
unions. The employer shall in that case intimate in writing to the
President or the Secretary of the union the number of protected
workmen allotted to it:
Provided further that where the number of protected workmen

allotted to a union under this sub-rule, falls short of the number of
officers of the union seeking protection, the union shall be entitled to
select the officers to be recognized as protected workmen. Such
selection shall be made by the union and communicated to the
employer within five days of the receipt of the employer’s letter.
(4) When a dispute arises between an employer and any

registered trade union in any matter connected with the recognition of
„protected workmen‟ under this rule, the dispute shall be referred to
3[any Regional Labour Commissioner (Central) or] the Assistant
Labour Commissioner (Central) concerned, whose decision thereon
shall be final.
1 Subs. by G.S.R. 1283, dated 28th May, 1969.

3 Ins.by G.S.R. 289, dated 2nd March, 1982 (w.e.f. 13-3-1982).
325
1[62. Application for recovery of dues:-(1) Where any money

is due from an employer to a workman or a group of workmen under
a settlement or an award or under the provisions of Chapter V-A or
2[Chapter V-B], the workman or the group of workmen, as the case
may be, may apply in Form K-1 for the recovery of the money due:
Provided that in the case of a person authorized in writing by the

workman, or in the case of the death of the workman the assignee or
heir of the deceased workman, the application shall be made in Form
K-2.
(2) Where any workman or a group of workmen is entitled to

receive from the employer any money or any benefit which is capable
of being computed in terms of money, the workman or the group of
the workmen, as the case may be, may apply to the specified Labour
Court in Form K-3 for the determination of the amount due or, as the
case may be, the amount at which such benefit should be computed:]
3[Provided that in the case of the death of a workman, application

shall be made in Form K-4 by the assignee or heir of the deceased
workman].
63. Appointment of Commissioner:-Where it is necessary to

appoint a Commissioner under sub-section (3) of section 33C of the
Act, the Labour Court may appoint a person with experience in the
particular industry, trade or business involved in the industrial
dispute or a person with experience as a Judge of a Civil Court, or as
a Stipendiary Magistrate or as a Registrar or Secretary of a Labour
Court, or Tribunal constituted under any Provincial Act or State Act or
of a Labour Court, Tribunal or National Tribunal constituted under
the Act or of the Labour Appellate Tribunal constituted under the
Industrial Disputes (Appellate Tribunal) Act, 1950.
64. Fees for the Commissioner, etc.:-(1) The Labour Court
326
shall, after consultation with the parties, estimate the probable

duration of the enquiry and fix the amount of the Commissioner’s fees
and other incidental expenses and direct the payment thereof, into the
nearest treasury, within a specified time, by such party or parties and
in such proportion as it may consider fit. The Commission shall not
issue until satisfactory evidence of the deposit into the treasury of the
sum fixed is filed before the Labour Court:
Provided that the Labour Court may from time to time direct that
any further sum or sums be deposited into the treasury within such
time and by such parties as it may consider fit:
Provided further that the Labour Court may in its discretion,

extend the time for depositing the sum into the treasury.
(2) The Labour Court may, at any time, for reasons to be

recorded in writing, vary the amount of the Commissioner’s fees in
consultation with the parties.
(3) The Labour Court may direct that the fees shall be
disbursed to the Commissioner in such instalments and on such dates
as it may consider fit.
(4) The undisbursed balance, if any, of the sum deposited shall
be refunded to the party or parties who deposited the sum in the same
proportion as that in which it was deposited.
1 Subs. by G.S.R. 488, dated 16th March, 1965.

2 Ins. by G.S.R. 1070, dated 23rd July, 1977.
3 Ins. by G.S.R. 1070, dated 23rd July, 1977
327
65. Time for submission of report:-(1) Every order for the

issue of a Commission shall appoint a date, allowing sufficient time,
for the Commissioner to submit his report.
(2) If for any reason the Commissioner anticipates that the date
fixed for the submission of his report is likely to be exceeded, he shall
apply, before the expiry of the said date, for extension of time setting
forth grounds thereof and the Labour Court shall take such grounds
into consideration in passing orders on the application:
Provided that the Labour Court may grant extension of time

notwithstanding that no application for such extension has been
received from the Commissioner within the prescribed time limit.
66. Local Investigation:-In any industrial dispute in which

the Labour Court deems a local investigation to be requisite or proper
for the purpose of computing the money value of a benefit, the
Labour Court may issue a commission to a person referred to in rule
63 directing him to make such investigation and to report thereon to
it.
67. Commissioner’s report:-(1) The Commissioner after such

local inspection as he deems necessary and after reducing to writing
the evidence taken by him, shall return such evidence together with
his report in writing signed by him to the Labour Court.
(2) The report of the Commissioner and the evidence taken by
him (but not the evidence without the report) shall be evidence in the
industrial dispute and shall form part of the record of the proceedings
in the industrial dispute; but the Labour Court or, with the permission
of the Labour Court, any of the parties to the industrial dispute may
examine the Commissioner personally before the Labour Court,
regarding any of the matters referred to him or mentioned in his
report or as to his report, or as to the manner in which he had made
the investigation.
(3) Where the Labour Court is for any reason dissatisfied with
328
the proceedings of the Commissioner it may direct such further

enquiry to be made as it shall think fit.
68. Powers of Commissioner: -Any Commissioner appointed
under these rules, may unless otherwise directed by the order of
appointment—
(a) examine the parties themselves and any witnesses whom they
or any of them may produce, and any other person whom the
Commissioner thinks proper to call upon to give evidence in
the matter referred to him;
(b) call for and examine documents and other things relevant to
the subject of enquiry;
(c) at any reasonable time enter upon or into any premises
mentioned in the order.
69. Summoning of witnesses, etc.:-(1) The provisions of the
Code of Civil Procedure, 1908 (Act V of 1908) relating to the
summoning, attendance, examination of witnesses and penalties to
be imposed upon witnesses, shall apply to persons required to give
evidence or to produce documents before the Commissioner under
these Rules.
(2) Every person who is summoned and appears as a witness

before the Commissioner shall be entitled to payment by the Labour
Court out of the sum deposited under rule 64, of an allowance for
expenses incurred by him in
329
accordance with the scale for the time being in force for payment of
such allowance to witnesses appearing in the civil courts.
70. Representation of parties before the Commissioner: -The

parties to the industrial dispute shall appear before the Commissioner,
either in person or by any other person who is competent to represent
them in the proceedings before the Labour Court.
1[70A. Preservations of records by the National

Industrial Tribunals, Industrial Tribunals or Labour Courts:-(1)
The records of the National Industrial Tribunals, Industrial Tribunals
or Labour Courts specified in Column 1 of the Table below shall be
preserved, for the periods specified in the corresponding entry in
column 2 thereof after the proceedings are finally disposed of by such
National Tribunals, Industrial Tribunals, Labour Courts.
Table
Records Number of
years for
which the
records shall
be
preserved
1 2
(i) Orders and judgments of National 10 years
Industrial Tribunals, Industrial Tribunals or
Labour Courts
(ii) Exhibited documents in the above mentioned 10 years
Tribunals or Courts.
(iii) Other papers 7 years
(2) Notwithstanding anything contained in sub-rule (1), the
records of the National Industrial Tribunals, Industrial Tribunals or
330
Labour Courts, connected with writ petitions, if any, filed in the High
Courts or Supreme Court, or connected with appeals by special leave,
if any, filed in the Supreme Court shall be preserved at least till the
final disposal of such writ petitions or appeal by special leave.]
71. Notice of strike:-(1) The notice of strike to be given by

workmen in a public utility service shall be in Form L.
(2) On receipt of a notice of a strike under sub-rule (1), the
employer shall forthwith intimate the fact to the Conciliation Officer
having jurisdiction in the matter.
72. Notice of lock-out: -The notice of lock-out to be given by

an employer carrying on a public utility service shall be in Form M.
2[The notice shall be displayed conspicuously by the employer on a
notice board at the main entrance to the establishment and in the
Manager’s Office:
Provided that where a registered trade union exists, a copy of the

notice shall also be served on the Secretary of the Union.]
73. Report of lock-out or strike: -The notice of lock-out or

strike in a public utility service to be submitted by the employer under
sub-section (3) of section 22, shall be in Form N.
1 Ins. by G.S.R. 931, dated 15th July, 1975

2 Ins. by G.S.R. 1151, dated 8th October, 1959.
331
74. Report of notice of strike or lock-out:-The report of notice

of a strike or lock-out to be submitted by the employer under sub-
section (6) of section 22 shall be sent by registered post or given
personally to the Assistant Labour Commissioner (Central)
appointed for the local area concerned, with copy by registered post
to:—
(1) The Administrative Department of the
Government of India concerned.
(2) The Regional Labour Commissioner (Central) for the
Zone.
(3) Chief Labour Commissioner (Central).
(4) Ministry of Labour of the Government of India.
(5) Labour Department of the State Government
concerned, and
(6) The District Magistrate concerned.
75. Register of settlements: -The Conciliation Officer shall
file all settlements effected under this Act in respect of disputes in the
area within his jurisdiction in a register maintained for the purpose as
in Form O.
1[75A. Notice of lay off:-(1) If any workman employed in an

industrial establishment as defined in the Explanation below section
25A [not being an industrial establishment referred to in sub-section
(1) of that section] is laid off, then, the employer concerned shall give
notices of commencement and termination of such lay off in Forms O-
1 and O-2 respectively within seven days of such commencement or
termination, as the case may be.
(2) Such notices shall be given by an employer in every case

irrespective of whether, in his opinion, the workman laid off is or is not
entitled to compensation under section 25C.]
332
2[75B. Application for permission for lay-off under section

25M:-(1) Application for permission to lay-off any workman under
sub-section (1), or for permission to continue a lay-off under 3[sub-
section (3)] of section 25M shall be made in Form O-3 and delivered to
the authority specified under sub-section (1) either personally or by
registered post acknowledgement due and where the application is
sent by registered post the date on which the same is delivered to the
said authority shall be deemed to be the date on which the application
is made, for the purposes of 4[sub-section (5)] of the said section.
5[(2) The application for permission shall be made in triplicate and

copies of such application shall be served by the employer on the
workmen concerned and a proof to that effect shall also be submitted
by the employer along with the application.]
(3) The employer concerned shall furnish to the authority to

whom the application for permission has been made such further
information as the authority considers necessary for arriving at a
decision on the application, as and when called for by such authority,
so as to enable the authority to communicate the permission or refusal
to grant permission within the period specified in 6[sub- section (5)] of
section 25M.
1 Ins. by G.S.R. 229, dated 22nd February, 1960.

2 Ins. by G.S.R. 111 (E), dated 5th March, 1976.
3 Subs. by S.O. 2485, dated 20th May, 1985.
5 Ins. by G.S.R. 289, dated 2nd March, 1982 (w.e.f. 13-3-1982).
333
Rule 76A The Industrial Disputes (Central) Rules, 1957 71
(4) Where the permission to lay-off has been granted by the

said authority, the employer concerned shall give to the Regional
Labour Commissioner (Central) concerned, a notice of
commencement and termination of such lay-off in Forms O-1 and O-
2 respectively and where permission to continue a lay-off has been
granted by the said authority, the employer shall give to the Regional
Labour Commissioner (Central) concerned, a notice of
commencement of such lay-off in Form O-1, in case such a notice has
not already been given under sub-rule (1) of rule 75A, and a notice of
termination of such lay-off in Form O-2.
(5) The notice of commencement and termination of lay-off
referred to in sub-rule (4) shall be given within the period specified in
sub-rule (1) of rule 75A.]
76. Notice of retrenchment:-If any employer desires to
retrench any workman employed in his industrial establishment who
has been in continuous service for not less than one year under him
(hereinafter referred to as „workman‟ in this rule and in rules 77 and 78),
he shall give notice of such retrenchment as in Form P to the Central
Government, the Regional Labour Commissioner (Central) and
Assistant Labour Commissioner (Central) and the Employment
Exchange concerned and such notice shall be served on that
Government, the Regional Labour Commissioner (Central), the
Assistant Labour Commissioner (Central), and the Employment
Exchange concerned, by registered post in the following manner:—
(a) where notice is given to the workman, notice of retrenchment
shall be sent within three days from the date on which notice
is given to the workman;
(b) where no notice is given to the workman and he is paid one
month‟s wages in lieu thereof, notice of retrenchment shall be
sent within three days from the date on which such wages are
paid; and
(c) where retrenchment is carried out under an agreement which
334
specifies a date for the termination of service, notice of

retrenchment shall be sent so as to reach the Central
Government, the Regional Labour Commissioner (Central),
the Assistant Labour Commissioner (Central), and the
Employment Exchange concerned, at least one month before
such date:
Provided that if the date of termination of service agreed upon is

within 30 days of the agreement, the notice of retrenchment shall be
sent to the Central Government, the Regional Labour Commissioner
(Central), the Assistant Labour Commissioner (Central), and the
Employment Exchange concerned, within 3 days of the agreement.]
1[76A. Notice of, and application for permission for,

retrenchment:-(1) Notice 2[or, as the case may be, the application
under] sub-section (1) of section 25N for retrenchment shall be served
in Form PA and served on the Central Government or such authority
as may be specified by the Government under the said clause either
personally or by registered post acknowledgement due and where
the notice is served by registered post, the date on which the same is
delivered to the Central Government or the authority shall be deemed
to be the date of service of the notice for the purposes of [sub-section
(4)] of the said section.
1 Ins. by G.S.R. 111 (E), dated 5th March, 1976.

335
72 The Industrial Disputes (Central) Rules, 1957 Rule 76B
1[2[(2)] The notice or, as the case may be, the application, shall be
made in triplicate and copies of such notice, or as the case may be, the
application, shall be served by the employer on the workmen
concerned and a proof to that effect shall also be submitted by the
employer along with the notice or, as the case may be, the application.]
3[(3)] The employer concerned shall furnish to the Central

Government or the authority to whom the notice for retrenchment
has been given or the application for permission for retrenchment has
been made, under sub-section
(1) of section 25N, such further information as the Central

Government or, as the case may be, the authority considers necessary
for arriving at a decision on the notice or, as the case may be, the
application, as and when called for by such authority so as to enable
the Central Government or the authority to communicate its
permission or refusal to grant permission within the period specified
in sub-section (4) of section 25N.]
76B. Notice of closure: -If an employer intends to close down an
undertaking, he shall give notice of such closure in Form Q to the
Central Government, the Regional Labour Commissioner (Central),
the Assistant Labour Commissioner (Central), and the Employment
Exchange concerned, by registered post.
76C. Notice of, and application for permission for, closure:-(1)

Notice under sub-section (1) of section 25-O of intended closure shall
be given in Form Q-A and served on the Central Government either
personally or by registered post acknowledgement due.
4[A copy of such application shall be served simultaneously by

registered post on the President or Secretary of registered trade
union(s) functioning in the establishment and a notice in this regard
shall also be displayed conspicuously by the employer on a notice
336
board at the main entrance to the establishment for the information of

all the concerned workmen at the same time when applications are
served on the Central Government.]
5[(2)] The notice, or, as the case may be, the application shall be
made in triplicate.
6[(3)] The employer concerned shall furnish to the Central

Government to whom the notice of intended closure has been given
or the application for permission to close down has been made, such
further information as that Government considers necessary, for
arriving at a decision on the notice, or as the case may be, the
application, and calls for from such employer.]
77. Maintenance of seniority list of workmen: -The employer

shall prepare a list of all workmen in the particular category from
which retrenchment is contemplated to be arranged according to the
seniority of their service in that category and cause a copy thereof to
be pasted on a notice board in a
1 Sub-rule (3) subs. by G.S.R. 289, dated 2nd March, 1982 (w.e.f. 13-
3-1982).
2 Sub-rule (3) re-numbered as sub-rule (2) by S.O. 2485, dated 20th

May, 1985.
3 Sub-rule (4) re-numbered as sub-rule (3) by S.O. 2485, dated 20th
May, 1985.
4 Ins. by S.O. 2485, dated 20th May, 1985.
5 Re-numbered as sub-rules (2) and (3) by S.O. 2485, dated 20th
May, 1985.
6 Re-numbered as sub-rules (2) and (3) by S.O. 2485, dated 20th
May, 1985.
337
conspicuous place in the premises of the industrial establishment at

least seven days before the actual date of retrenchment.
78. Re-employment of retrenched workmen:-(1) At least ten

days before the date on which vacancies are to be filled, the employer
shall arrange for the display on a notice board in a conspicuous place
in the premises of the industrial establishment details of those
vacancies and shall also give intimation of those vacancies by
registered post to every one of all the retrenched workmen eligible to be
considered therefor, to the address given by him at the time of
retrenchment or at any time thereafter :
Provided that where the number of such vacancies is less than the
number of retrenched workmen, it shall be sufficient if intimation is
given by the employer individually to the senior most retrenched
workmen in the list referred to in rule 77 the number of such senior
most workmen being double the number of such vacancies:
Provided further that where the vacancy is of a duration of less

than one month there shall be no obligation on the employer to send
intimation of such vacancy to individual retrenched workmen:
1[Provided also that if a retrenched workman, without sufficient

cause being shown in writing to the employer, does not offer himself for
re-employment on the date or dates specified in the intimation sent to
him by the employer under this sub-rule, the employer may not
intimate to him the vacancies that may be filled on any subsequent
occasion.]
(2) Immediately after complying with the provisions of sub-

rule (1), the employer shall also inform the trade unions connected
with the industrial establishment, of the number of vacancies to be
filled and names of the retrenched workmen to whom intimation has
been sent under that sub-rule:
338
Provided that the provisions of this sub-rule need not be

complied with by the employer in any case where intimation is sent
to every one of the workmen mentioned in the list prepared under
rule 77.
79. Penalties: -Any breach of these rules shall be punishable

with fine not exceeding fifty rupees.
80. Repeal: -The Industrial Disputes (Central) Rules, 1947, are
hereby repealed:
Provided that any order made or action taken under the rules so
repealed shall be deemed to have been made or taken under the
corresponding provisions of these rules.
1 Ins. by G.S.R. 40, dated 31st December, 1958.
339
74 The Industrial Disputes (Central) Rules, 1957 Schedule
1[Schedule
[Form A [See Rule 3]
Form of application for the reference of an industrial dispute to a

board of conciliation/court of enquiry/ labour court/tribunal/
national tribunal under section 10(2) of the industrial disputes act,
1947.
Whereas an industrial dispute ** is apprehended /exists

between……………… and ……..….… and it is expedient the
dispute/investigation and settlement the matters specified in the
enclosed statement which are connected with or relevant to the dispute
should be referred for **enquiry/adjudication by a Board of
Conciliation/a Court of Enquiry/ a Labour Court/ a Tribunal/ a
National Tribunal an application is hereby made under sub-section (2)
of section 10 of the Industrial Disputes Act, 1947, that the **said
matters/said dispute should be referred to **a Board of Conciliation/
a Court of Enquiry/a Labour Court/ a Tribunal/ a National Tribunal.
This application is made by the undersigned who have/has

been duly authorized to do so by virtue of a resolution (copy
enclosed) adopted by a majority of the members present at a meeting
of the …………held on the……..20………..
A statement giving the particulars required under rule 3 of the

Industrial Disputes (Central) Rules, 1957, is attached.
Dated the……………
Signature of employer**………………… or agent…………………………

or manager…………………….. or principal officer of the
Corporation..............…………
Signature of the President of the trade union **.............
340
Secretary of the trade union ...............
Or
**Signature of five representatives duly authorized (vide resolution

enclosed) .............................................
2[Or
**Signature of the workman ..................
Or
**Signature of the workman in the same establishment duly authorized

(vide authorization enclosed) …………………………]
To
The Secretary to the Government of

India. Ministry of Labour
1 Subs.by G.S.R. 302, dated April, 1958.

341
Schedule The Industrial Disputes (Central) Rules, 1957 75
Statement required under rule 3 of the Industrial Disputes (Central)

Rules, 1957, to accompany the form of application prescribed under
sub-section (2) of section 10 of the Industrial Disputes Act, 1947:
(a) Parties to the dispute including the name and address of the
establishment or undertaking involved.
(b) Specific matters in dispute.
(c) Total number of workmen employed in the undertaking
affected.
(d) Estimated number of workmen affected or likely to be affected
by the dispute.
(e) Efforts made by the parties themselves to adjust the dispute.
1[Copy to—
(i) The Assistant Labour Commissioner (Central)............................

[here enters office address of the Assistant Labour
Commissioner (Central) in the local area concerned];
(ii) The Regional Labour Commissioner (Central);
(iii) The Chief Labour Commissioner (Central), New Delhi.]
**Delete whichever is not applicable.
FORM B [SEE RULE 6]
Whereas an industrial dispute has arisen/is apprehended

between .....……… and .....................and it is expedient to refer the said
dispute under section 10 of the Industrial Disputes Act, 1947 to a
Board of Conciliation for the purpose of investigating the same and
for promoting a settlement thereof, you are hereby required to
intimate to the undersigned not later than the......................
.............................. the name(s) and address(es) of one (two) person(s)
whom you wish to recommend for appointment as your
representative(s) on the said Board.
342
If you fail to make the recommendation by the date specified

above, the Central Government will select and appoint such person(s)
as it thinks fit to represent you.
Secretary to the Government of India
Ministry of Labour
2[FORM C [SEE RULE 7] AGREEMENT
[Under section 10A of the Industrial Disputes Act, 1947] Names of the
Parties.
Representing employers: Representing workmen/workman.
It is hereby agreed between the parties to refer the following

dispute to the arbitration of ................................... (here specify the
name(s) and address(es) of the arbitrator(s):
(i) Specific matters in dispute.

(ii) Details of the parties to the dispute including the
name and address of the establishment or
undertaking involved.
(iii) Name of the workman in case he himself is
involved in the dispute or the name of the union,
if any, representing the workman or workmen in
question.
(iv) Total number of workmen employed in the
undertaking affected.

2 Subs. by G.S.R. 1059, dated 30th May, 1968.
343
(v) Estimated number of workmen affected or likely to be affected

by the dispute.
*We further agree that the majority decisions of the arbitrator(s) be
binding on us/in case the arbitrators are equally divided in their
opinion, that they shall appoint another person as umpire whose
award shall be binding on us.
The arbitrator(s) shall make his (their) award within a period of

............(here specify the period agreed upon by the parties) 1[from the
date of publication of this agreement in the Official Gazette by the
appropriate Government] or within such further time as is extended
by mutual agreement between us in writing. In case the award is not
made within the period aforementioned, the reference to arbitration
shall stand automatically cancelled and we shall be free to negotiate
for fresh arbitration.]
Witnesses. (1)
(2) Copy to: Signature of the parties. Representing employer.
**Workman/Representing workman/workmen.
(i) The Assistant Labour Commissioner (Central),

(here enter office address of the Conciliation
Officer in local area concerned).
(ii) The Regional Labour Commissioner (Central).
(iii) The Chief Labour Commissioner (Central), New
Delhi.
(iv) The Secretary to the Government of India,
Ministry of Labour, Employment and
Rehabilitation (Department of Labour and
Employment), New Delhi.
* Where applicable.
** Delete whichever is not applicable.]
344
FORM D [SEE RULE 17]
SUMMONS
Whereas an industrial dispute between................and.................

has been referred to this Board of Conciliation for investigation and
settlement, Court of Enquiry for investigation/Labour
Court/Tribunal/National Tribunal for adjudication, under section 10
of the Industrial Disputes Act, 1947, you are hereby summoned to
appear before the Board/Court/Labour Court/Tribunal/National
Tribunal in person on the……..………………………….day
of.............at...........o’clock in the...........noon to answer all material
questions relating to the said dispute and you are directed to produce
on that day all the books, papers and other documents and things in
your possession or under your control in any way relating to the
matter under investigation by this Board/Court/Labour
Court/Tribunal/National Tribunal
Dated ...............
Board of Conciliation. Chairman/Secretary,

…………………….………...
Court of Enquiry. Labour Court.
1 Ins. by G.S.R. 1157, dated, 11th October, 1974
345
Tribunal Presiding Officer/Secretary, ……………………………….
National Tribunal
1[FORM E [SEE RULE 34]
Notice of Change of Service Condition Proposed by an Employer
Name of employer.........................................……............. Address

..............................................................................Dated
the ......................day of 20
In accordance with section 9A of the Industrial Disputes Act,

1947. I/We hereby give notice to all concerned that it is my/our
intention to effect the change/changes specified in the annexure, with
effect from....................................................in the conditions of service
applicable to workmen in respect of the matters specified in the
Fourth Schedule to the said Act.
Signature................
..............
Designation.............
...............
Annexure
(Here Specify the Change/Changes Intended to be Effected)
Copy forwarded to:
(1) The Secretary of registered trade union, if any;

(2) Assistant Labour Commissioner (Central).............[here enter
346
office address of the Assistant Labour Commissioner (Central)

in the local area concerned];
(3) Regional Labour Commissioner
(Central)...........……………….. Zone;
(4) Chief Labour Commissioner (Central), New Delhi.]
FORM F [SEE RULE 36]
Representation of parties
Before
In the matter of.
(Here mentions the authority concerned)
Reference No. ............…of.............................…
…………………………………………………………………………………
…. workmen Versus
…
………………………………………………………………………………
…Employer I/We hereby authorize Shri/Sarvashree................to
represent me/us in the above matter.
Dated this..................... day of.20..............Signature of person(s)

nominating the representative(s)
Address
Accepted
Signature of representative(s) Address
347
FORM G [SEE RULE 47]
Form of nomination paper
Name of Industrial Group/Section/Shop/Department

Establishment
I nominate……………..(here enter the name of the workmen’s
representative eligible for election) as a candidate for election to the
Works Committee. He is eligible as a voter in the constituency for
which he is nominated.
Date.................................
Signature of proposer.
I agree to the proposed nomination.
Signature of candidate.
Date.................................
Attested by: (1)
(2)
(To be signed by any two voters belonging to the electoral

constituency.)
1[FORM G-I [SEE RULE 56A]
Progress Report on constitution and functioning of Works

Committee for the half-year ending the 30th June/*31st
December......................
1.Name and address of the establishment.

2. Name of the employer.
348
3. (a) Number of workmen employed.

(b) Names of Unions, if any.
(c) Affiliation of the Union(s) to the Central
Organizations of workers.
4. If the Works Committee has been functioning—
(a) Date of its constitution.
(b) Number of workmen’s representatives (elected
members).
(c) Number of employer’s representatives (nominated
members).
(d) Number of meetings held during the half-year (with
dates).
5. If the Works Committee had not been functioning, the
difficulties encountered in its constitution/functioning.
6. General remarks, if any. Date.................. Place................
*Strike out the portion not applicable.]
FORM H [SEE RULE 58]
Signature of employer or his representative.
Form for memorandum of settlement
Names of Parties:
Representing employer(s): Representing workmen:
..................................
Witnesses:
Short recital of the case Terms of settlement
Signature of the parties ............
1 Ins. by G.S.R. 1078, dated 4th August, 1962.
349
(1) ..................................
(2) ...................................
..................................................
*Signature of Conciliation Officer.
--------------------------
Board of Conciliation.
Copy to:
(Here enter the office address of the Assistant Labour Commissioner

(Central)] in the local area concerned.)
(1) [Assistant Labour Commissioner

(Central)……………………….
(2) Regional Labour Commissioner (Central).......;
(3) Chief Labour Commissioner (Central), New Delhi.....
(4) The Secretary to the Government of India, Ministry of Labour,
New Delhi.
+In case of settlements effected by. Conciliation Officer.
--------------------------
Board of Conciliation.
+In cases where settlements are arrived at between the employer

and his workmen otherwise than in the course of conciliation
proceeding.
350
FORM I [SEE RULE 59]
Complaints regarding change of conditions of service
Labour Court .....................
Tribunal
Before the --------------------…………….. Complaint under section 33A

of the National Tribunal
Industrial Disputes Act, 1947.
In the matter of:
Reference No. ..............
A………………….
Complainant(s) Versus B………………….
Opposite Party (ies)
Address:
The petitioner(s) begs/beg to complain that the Opposite

Party(ies) has/have been guilty of a contravention of the provisions
of section 33 of the Industrial Disputes Act, 1947 (14 of 1947) as shown
below: —
(Here set out briefly the particulars showing the manner in which the
alleged contravention has taken place and the grounds on which the
order or act of the management is challenged)
Labour Court
----------------------
The complainant(s) accordingly prays/pray that the Tribunal
-----------------------
351
National Tribunal may be pleased to decide the complaint set out

above and pass such order or orders thereon as it may deem fit and
proper.
The number of copies of the complaint and its annexures

required under rule 59 of the Industrial Disputes (Central) Rules, 1957,
are submitted herewith.
Signature of the complainant(s).
352
Dated this............ day of. .......................20.....
Verification
I do solemnly declare that what is stated in

paragraphs...........above is true to my knowledge and that what is
stated in paragraphs..................above is stated upon information
received and believed by me to be true. This verification is signed by
me at ………………..on..........................day of.
.............................................................................................................20......
......
Signature or Thumb impression of the person verifying
FORM J [SEE RULE 60 (1)]
Before (here mention the Conciliation Officer, Board, Labour Court,

Tribunal or National Tribunal). sub-section (1)
Application for permission under-------------------------of section 33 of

the sub-section (3)
Industrial Disputes Act, 1947 (14 of 1947),
In the matter of:
Reference No................. A………………….
Applicant Address:
versus
B…………………..
Opposite Party(ies).
Address:
353
The above-mentioned applicant begs to state as follows.
[Here mentions the action specified in clause (a) or clause (b) of sub-
section (1) grounds on which the permission is sought for].
The applicant therefore prays that express permission may

kindly be granted to him to take the following action, namely: —
[Here mentions the action specified in clause (a) or of sub-section

(1) clause (b) of section 33.]
---------------------- of sub-section (3)
Signature of the applicant.
Dated this............. day of............................ 20.....
Space for verification
Date (on which the verification was signed) ............. Place (at which the
verification was signed) ............
(Signature of the person verifying).
*FORM K [SEE RULE 60 (2)]
Before (here mention the Conciliation Officer, Board, Labour Court,

Tribunal or National Tribunal).
Application under sub-section (2) of section 33 of the Industrial

Disputes Act, 1947 (14 of 1947)
In the matter of:
Reference No. ..............
A…………………
Applicant. Address:
354
versus
B.....................
Opposite Party(ies).
Address
The above-mentioned applicant begs to state as follows: —
355
(Here set out the relevant facts and circumstances of the case.)
*The workman/workmen discharged/dismissed under clause

(b) of sub- section (2) of section 33 has/have been paid wages for one
month.
The applicant prays that the Conciliation Officer/Board/Labour

Court/ Tribunal/ National Tribunal may be pleased to approve of
the action taken, namely:
[Here mentions the action taken under clause (a) or clause (b) of sub-
section (2) of section 33].
Signature of the applicant.
Space for verification
Dated this...............day of.............. 20.........
Date (on which the verification was signed).....................
Place (at which the verification was signed)........(Signature of the

person verifying).
*Delete, if not applicable.
1[FORM K-1 [SEE RULE 62(1)]
Application under sub-section (1) of section 33C of the Industrial

Disputes Act, 1947
To
The Secretary to the Government of India, Ministry of

(1)
Labour and Employment, New Delhi.
(2) The Regional Labour Commissioner (Central),..............
356
(here insert the name of the region).
Sir,
I/We have to state that I am/we are entitled to receive from

M/s.......................a sum of Rs...................on account
of..................under the provisions of [Chapter V-A/Chapter V-B] of
the Industrial Disputes Act, 1947 in terms of the award dated
the................. given by...................………….in terms of the settlement
dated the........……………………….........arrived at between the said
M/s................................and their workmen through...........................the
duly elected representatives.
I/We further state that I/we served the management with a

demand notice by registered post on...........................for the said
amount which the management has neither paid nor offered to pay
to me/us even though a fortnight has since elapsed. The details of the
amount have been mentioned in the Statement hereto annexed.
I/We request that the said sum may kindly be recovered from
the management under sub-section (1) of section 33C of the Industrial
Disputes Act, 1947, and paid to me/us as early as possible.
Signature of the applicant(s)

Address(es) 1.
Station:
2.
Date:
3.
4.
357
Annexure
[here indicate the details of the amount(s) claimed]
358
Application by a person authorized by a workman or by the

assignee or heir of a deceased workman under sub-section (1) of
section 33C of the Industrial Disputes Act, 1947
To
(1) The Secretary to the Government of India, Ministry of

Labour and Employment, New Delhi.
(2) The Regional Labour Commissioner (Central) ......... (here
insert the name of the region).
Sir,
I* Shri/Shrimati/Kumari......................…………………...have to
state that Shri/Shrimati/Kumari………......................*is/was entitled
to receive from M/s. …..….........................................a sum of
Rs……….........................on account of .......................under the
provisions of Chapter V-A/Chapter V-B of the Industrial Disputes
Act, 1947 in terms of the award dated the.....................……….given by
.........................../ in terms of the settlement dated
the..........................arrived at between the said
M/s......................……………………and their workmen through
.............................. the duly elected representatives.
I further state that I served the management with a demand

notice by registered post on ......................... for the said amount which
the management has neither paid nor offered to pay to me even
though a fortnight has since elapsed. The details of the amount have
been mentioned in the Statement hereto annexed.
I request that the said sum may kindly be recovered from the
management under sub-section (1) of section 33C of the Industrial
Disputes Act, 1947, and paid to me as early as possible.
359
*I have been duly authorized in writing by ...................... (here

insert the name of the workman) to make this application and to
receive the payment of the aforesaid amount due to him.
*I am the assignee/heir of the deceased workman and am entitled

to receive the payment of the aforesaid amount due to him.
Station ...…………..
Signature of the applicant………………..
Date .....................
Address ..................................…………
Annexure
[here indicate the details of the amount claimed)]
*Strike out the portions inapplicable.
Application under sub-section (2) of section 33C of the Industrial

Disputes Act, 1947
Before the Central Government Labour Court at

..........................…. between……………………….and…………………
(1) Name of the applicant(s).

360
(2) Name of the employer.

The petitioner(s).......................,a workman of.................. M/s
..................... of..................... The petitioner(s) undersigned, workmen of
…………………………. is/are entitled to receive from the said
M/s……………………..the money/benefits mentioned in the
statement hereto annexed.
It is prayed that the Court be pleased to determine the

amount/amounts due to the petitioner(s).
Signature or Thumb-
Impression(s) of the applicant(s)
Address(es)
1.
2.
3.
4.
Station .................... Date ........................
Annexure
(Herein set out the details of the money due or the benefits accrued
together with the case for their admissibility)]
Application by a person who is an assignee or heir of a

deceased workman under sub-section (2) of section 33c of the
industrial disputes act, 1947 (14 of 1947)
361
Before the Central Government Labour Court at ...........................
Between
(1) Name of the applicant/applicants

(2) Name of the employer
I am/we are the assignee(s) heir(s) of the deceased workman and
am/are entitled to make an application on his behalf.
Shri…….....................is former workman of

M/s......................………………of .....................is entitled to
receive from the said M/s ................................ the
money/benefits mentioned in the statement hereto annexed;
It is prayed that the Court be pleased to determine the

amount/amounts due to the deceased workman.
Station:…………….. Date:………………..
Annexure
Name and Address of workman.... Signature or thumb impression of

the applicant(s)....................……... Address of the applicant(s) ...........
[Herein set out the details of the money due or the benefits accrued
together with the case for their admissibility).]
362
FORM L [SEE RULE 71]
Form of notice of strike to be given by 1[union/workmen] in public

utility service name of union
2[Names of five elected representatives of workmen.] Dated the .............

day of .......................................................... 20.........
To
(The name of the employer)
Dear Sir/Sirs,
In accordance with the provisions contained in sub-section (1) of

section 22 of the Industrial Disputes Act, 1947, I/We hereby give you
notice that I propose to call a strike/ We propose to go on strike on
.........20.........., for the reasons explained in the annexure.
Yours faithfully,
Secretary of the Union
--------------------------------------------------------------------
-------------------------
3[Five representatives of the workmen duly elected at a meeting

held on.......(date), vide resolution attached]
Annexure
Statement of the case. Copy to:
(1) Assistant Labour Commissioner

(Central)……………………………………….. (Here enter office address
of Assistant Labour Commissioner (Central) in the local
363
area concerned)
(2) Regional Labour Commissioner (Central) ....................... Zone.

(3) Chief Labour Commissioner (Central), New Delhi.
4[FORM M [SEE RULE 72]
Form of notice of lock-out to be given by an employer carrying on

a public utility service
Name of
employer....................................………………………………………….
Address..........................................................………………………………
…. Dated the..............day of................ 20............
In accordance with the provisions of sub-section (2) of section 22

of the Industrial Disputes Act, 1947, I/we hereby give notice to all
concerned that it is my/our intention to effect a lock-out
in...........................department(s)/section(s) of my/our establishment
with effect from..................for the reasons explained in the annexure.
Copy forwarded to
Annexure statement of reasons
Signature………………. Designation………….

364
(1) The Secretary of the Registered Union, if any.

(2) Assistant Labour Commissioner
(Central)………………………………………. (Here enters
office address of the Assistant Labour Commissioner
(Central) in the local area concerned.]
(3) Regional Labour Commissioner (Central)..............Zone
(4) Chief Labour Commissioner (Central), New Delhi.]
FORM N [SEE RULE 73]
Form of report of strike or lock-out in a public utility service
Information to be supplied in this form immediately on the occurrence

of a strike or lock-out in a public utility service to the Assistant Labour
Commissioner (Central) for the local area concerned
Nam Stati Norm Number of Stri Date Cau Was Is there any Any
e of on al workers ke of se notic permanent other
unde and worki involved or comm e of agency or informati
r- distri ng Direct Indirec lock en strik agreement in on
taki ct streng ly tly - out cemen e or the
ng th t of lock- undertaking
strike out for the
or give settlement of
lock- n? dispute
out if so between the
on employer
what and
date workmen?
and If any
for exists,
what particu
perio lars
d thereof
1 2 3 4 5 6 7 8 9 10 11
365
Notes.:-Column.-(3) Give the average number of workmen

employed during the month previous to the day on which the strike
or lock-out occurred. While reckoning the average, omit the days on
which the attendance was not normal for reasons other than individual
reasons of particular workmen. Thus, days on which strike or lock-out
occurs or communal holiday is enjoyed by a large section of workers
should be omitted.
Column. -(4) If, say, 200 workers in a factory strike work and in
consequence the whole factory employing 1,000 workers has to be
closed then, 200 should be shown under “directly” and the remaining
under “indirectly”. If the strike of 200 workers does not
affect the working of the other departments of the factory, the number
of workers involved would only be 200, which figure should appear
under „directly‟ and column „indirectly‟ would be blank.
Column. -(8) Give the main causes of the dispute as well as the
immediate cause that led to the strike
366
Contents
Industrial Employment (Standing Orders) Act, 1946
Sections Preamble
1. Short title, extent and application

2. Interpretation
3. Submission of draft standing orders
4. Conditions for certification of standing orders
5. Certification of standing orders
6. Appeals
7. Date of operation of standing orders
8. Register of standing orders
9. Posting of standing orders
10. Duration and modification of standing orders 10-A.
Payment of subsistence allowance
11. Certifying Officers and appellate authorities to have
power of Civil Court
12. Oral evidence in contradiction of standing orders not
admissible
12-A. Temporary application of model standing orders
13. Penalties and procedure

13-A. Interpretation, etc., of standing orders
13-B. Act not to apply to certain industrial establishments
14. Power to exempt

14 A. Delegation of powers
15. Power to make rules THE SCHEDULE
367
Industrial Employment (Standing Orders) Act, 1946
[Act No. 20 of 1946 As Amended by Acts Nos. 3 of 1951, 36 of 1956,
16 of 1961, 39 or 1963, 51 of 1970 and 18 of 1982]
[23rd April, 1946]
An Ac4t require employers in industrial establishments formally to define

conditions of employment under them
Whereas it is expedient to require employers in industrial

establishments to define with sufficient precision the conditions of
employment under them and to make the said conditions known to
workmen employed by them.
It is hereby enacted as follow:
1. Short title, extent and application. - (1) This act may

be called the Industrial Employment (Standing Orders) Act, 1946.
(2) It extends to5[the whole of India 6[* * *].]
7
[(3) It applies to every industrial establishment wherein one
hundred or more workmen are employed, or were employed on any
day of the preceding twelve months:
Provided that the appropriate Government may, after giving not

less than two months’ notice of its intention so to do, by notification
in the Official Gazette, apply the provisions of this Act to any
industrial establishment employing such number of number of
persons less than one hundred as may be specified in the notification:
368
8
[* * * *]
9
[ (4) Nothing in this Act shall apply to-
1
For Statement of Objects and Reasons, see Gaz., of India, 1946, Pt.
V, pp. 179 & 180
2
Came into force w.e.f. 23-12-1963, vide Noti. No. S.O., 3594 dt. 23-
12-1963
3
Came into force w.e.f. 17.5.1982 vide Noti. No. S.O. 326 (E) dated 17-
5-1982 (1982 CCL-III-146)
4
History of the Act. - The Act has been amended by the Indian
Independence (Adaptation of Central Acts and Ordinances) Order,
1943; The A.O. 1950; Act 3 of 1951; Act 36 of 1956; Act 16 of 1961; Act
39 of 1963; 51 of 1970 and 18 of 1982,
Object of the Act.- That the object of the Act is to have uniform
Standing Orders providing for the matters enumerated in the
Schedule to the Act, that it was not intended that there should be
different conditions of service for those who are employed before
and those employed after the Standing Orders came into force and
finally, once the Standing Orders come into the force, they bind all
those presently in the employment of the concerned establishment as
well as those who are appointed thereafter. Agra Electric Supply Co.
Ltd. v. Aladdin, (1969) 2 SCC 598; U.P. Electric Supply Co. Ltd. v. Their
Workman, (1972) 2 SEC 54.
5
Subs. by the A.O. 1950, for “all the Provinces of India”
6
Omitted by Act No. 51 of 1970.
369
7
Subs. by Act No. 16 of 1961, S. 2 for sub-section (3)
8
The 2nd proviso to sub-section (3) omitted by Act No. 39 of 1963
(i) any industry to which the provisions of Chapter VII of the

Bombay Industrial Relations Act, 1946, apply; or
(ii) any industrial establishment to which the provisions of the
Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961
apply:
Provided that notwithstanding anything contained in the
Madhya Pradesh Industrial Employment (Standing Orders) Act,
1961, the provisions of this Act shall apply to all industrial
establishments under the control of the Central Government.]
2. Interpretation. - In this Act, unless there is anything

repugnant in the subject or context
10
[(a) “appellate authority” means an authority appointed by the
appropriate Government by notification in the Official Gazette to
exercise in such area as may be specified in the notification the
functions of an appellate authority under this Act:
Provided that in relation to an appeal pending before an Industrial

Court or other authority immediately before the commencement of
the Industrial Employment (Standing Orders) Amendment Act, 1963,
that Court or authority shall be deemed to be the appellate authority:]
(b) “appropriate Government” means in respect of industrial

establishments under the control of the Central Government or a
11[Railway administration] or in a major Port, mine or oil field, the
Central Government, and in all other in all other cases the State
Government:
12
[Provided that where question arises as to whether any industrial
establishment is under the control of the Central industrial
establishment is under the control of the Central Government that
370
Government may, either on a reference made to it by the employer

or the workman or a trade union or other representative body of
the workmen, or on its own motion and after giving the parties an
opportunity of being heard, decide the question and such
decision shall be final and binding on the parties :]
13
[ (c) “Certifying Officer” means a Labour Commissioner or a
Regional Labour Commissioner, and includes any other officer
appointed by the appropriate Government, by notification in the
Official Gazette, to perform all or any of the functions of a
Certifying Officer under this Act:]
(d) “employer” means the owner of an industrial establishment to

which this Act for the time being applies, and includes-
9
Added by ibid
10
Subs. by Act No. 39 of 1963
11
Subs. by the A.O. 1950, for “Federal railway”.
12
Ins. by Act No. 18 of 1982 (w.e.f. 17-5-1982
13
Subs. by Act No. 16 of 1961, S. 3, for cl. (c).
371
(i) in a factory, any person named under 14[clause (f) of sub-section

(1) of Section 7 of the Factories Act,1948], as manager of the
factory;
(ii) in any industrial establishment under the control of any
department of any Government in India, the authority appointed
by such Government in this behalf, or where no authority is so
appointed, the head of the department;
(iii) in any other industrial establishment, any person responsible to
the owner for the supervision and control of the industrial
establishment;
(e) “industrial establishment” means

(i) an industrial establishment as defined in clause (ii) of Section 2 of
the Payment of Wages Act, 1936, or
15
[(ii) a factory as defined in clause (m) of Section 2 of the Factories
Act, 1948, or]
(iii) a railway as defined in clause (4) of Section 2 of the Indian

Railway Act, 1890, or
(iv) the establishment of a person who, for the purpose of fulfilling a

contract with the owner of any industrial establishment, employs
workmen;
(f) “prescribed’ means prescribed by rules made by the appropriate

Government under this Act;
(g) “standing orders” means rules relating to matters set out in the
Schedule:
(h) “trade union” means a trade union for the time being registered
under the Indian Trade Union Act, 1926;
16
[(i) “wages” and “workman” have the meanings respectively
assigned to them in clauses (rr) and (s) of Section 2 of the
Industrial Disputes Act, 1947 (14 of 1947).]
372
3. Submission of draft standing orders. --(1) Within six months

from the date on which this Act becomes applicable to an industrial
establishment, the employer shall submit to the Certifying Officer five
copies of the draft standing orders proposed by him for adoption in
this industrial establishment.
(2) Provision shall be made in such draft for every matter set out
in the Schedule which may be applicable to the industrial
establishment, and where Model standing orders have been
prescribed shall be, so far as is practicable, in conformity with such
model.
(3) The draft standing orders submitting under this section shall
be accompanied by a statement giving prescribed particulars of the
workmen employed in the industrial establishment including the
name of the trade union, if any, to which they belong.
(4) Subject to such conditions as may be prescribed, a group of
employers in similar industrial establishments may submit a joint
draft of standing orders under this section.
4. Conditions for certification of standing orders. --Standing
orders shall be certifiable under this Act if--
14
Subs. by S. 3, ibid, for “cl. (e) of sub- section (1) of S. 9, the Factories
Act, 1934”.
15
Subs. by Act No. 16 of 1961, S. 3, for sub clause (ii)
16
Subs by Act No. 18 of 1982 (w.e.f. 17-5-1982).
(a) provision is made therein for every matter set out in the Schedule
which is applicable to the industrial establishment, and
(b) the standing orders are otherwise in conformity with the
provisions of this Act; 17
373
and it [shall be the function] of the Certifying Officer or appellate

authority to adjudicate upon the fairness or reasonableness of the
provisions of any standing orders.
5. Certification of standing orders.--(1) On receipt of the draft

under Section3, the Certifying Officer shall forward a copy thereof to
the trade union, if any, of the workmen, or where there is no such
trade union, if any, of the workmen or where there is no trade union,
to the workmen in such manner as may be prescribed, together with
a notice in the prescribed form requiring objections, if any, which
the workmen may desire to make to the draft standing orders to be
submitted to him within fifteen days from the receipt of the notice.
(2) After giving the employer and the trade union or such other
representatives of the workmen as may be prescribed an opportunity
of being heard, the Certifying Officer shall decide whether or not any
modification of or addition to the draft submitted by the employer is
necessary to render the draft standing orders certifiable under this
Act, and shall make an order in writing accordingly.
(3) The Certifying Officer shall thereupon certify the draft
standing orders, after making any modifications there in which his
order under sub-section (2) may require, and shall within seven days
thereafter send copies of the certified standing orders authenticated
in the prescribed manner and of his order under sub-section (2) to the
employer and to the trade union or other prescribed representatives
of the workmen.
6. Appeals.--(1) 18[Any employer, workmen, trade union or
other prescribed representatives of the workmen] aggrieved by the
order of the Certifying Officer under sub-section (2) of Section 5 may,
within 19 [thirty days] from the date on which copies are sent under
sub-section (3) of that section, appeal to the appellate authority, and
the appellate authority, whose decision shall be final, shall by order
in writing confirm the
374
standing orders either in the form certified by the Certifying Officer

or after amending the said standing orders by making such
modifications thereof or additions there to as it thinks necessary to
render the standing orders certifiable under this Act.
(2) The appellate authority shall, within seven days of its order
under sub-section (1) send copies thereof to the Certifying Officer, to
the employer and to the trade union or other prescribed
representatives of the workmen, accompanied, unless it has
confirmed without amendment the standing orders as certified by the
Certifying Officer, by copies of the standing orders a certified by it
and authenticated in the prescribed manner.
7. Date of operation of standing orders.--Standing orders shall,
unless an appeal is preferred under Section 6, come into operation on
the expiry of thirty days from the date on which authenticated copies
thereof are sent under sub-section (3) of Section 5, or where an appeal
as aforesaid is preferred, on the expiry of seven days from the date
on
17
Subs, by Act No. 36 of 1956, S. 32, for ‘shall not be the function”.
(w.e.f. 17-9-1956),
18
Subs, by Act No. 18 of 1982 (w.e.f. 17-5-1982).
19
Subs, by Act No. 1 of 1961, s. 4, for twenty-one days”.
375
which copies of the order of the appellate authority are sent under
sub-section (2) of Section 6.
8. Register of standing orders. -- A copy of all standing orders

as finally certified under this Act shall be filed by the Certifying
Officer in a register in the prescribed form maintained for the
purpose, and the Certifying Officer shall furnish a copy there of to
any person applying there for on payment of the prescribed fee.
9. Posting of standing orders.--The text of the standing orders
as finally certified under this Act shall be prominently posted by the
employer in English and in the language understood by the majority
of his workmen on special boards to be maintained for the purpose at
or near the entrance through which the majority of the workmen enter
the industrial establishment and in all departments thereof where the
workmen are employed.
10. Duration and modification of standing orders.--(1)
Standing orders finally certified under this Act shall not, except on
20
agreement between the employer and the workmen [or a trade
union or other representative body of the workmen] be liable to
modification until the expiry of six months from the date on which
the standing orders or the last modifications thereof came in to
operation.
21
[(2) Subject to the provisions of sub-section (1), an employer or
workman 22[ or a trade union or other representative body of the
workmen] may apply to the Certifying Officer to have the standing
orders modified, and such application shall be accompanied by five
copies of 23[***] the modifications proposed to be made, and where
such modifications are proposed to be made by agreement between
the employer and the workmen 19[or a trade union or other
representative body of the workmen], a certified copy of that
agreement shall be filed along with the application.]
(3) The foregoing provisions of this Act shall apply in respect of
376
an application under sub-section (2) as they apply to the certification

of the first standing orders.
24
[(4) Nothing contained in sub-section (2) shall apply to an
industrial establishment in respect of which the appropriate
Government is the Government of the State of Gujarat or the
Government of the State of Maharashtra.]
25
[10-A. Payment of subsistence allowance. --(1) Where any
workman is suspended by the employer pending investigation or
inquiry into complaints or charges of misconduct against him, the
employer shall pay to such workman subsistence allowance-
(a) at the rate of fifty per cent of the wages which workman was
entitled to immediately preceding the date of such suspension, for the
first ninety days of suspension; and
20
Ins. by Act No.18 of 1982 (w.e.f.17-5-1982).
21
Subs, by Act No. 36 of 1956, S. 32, for the original sub-section
(w.e.f. 17-9-956).
22
Ins. by Act No.18 of 1982 (w.e.f.17-5-1982).
23
Omitted by Act No. 39 of 963.
24
Added by ibid.
25
Ins. by Act No. 18 of 1982 (w.e.f. 17-5-1982).
377
(b) at the rate of seventy-five per cent of such wages for the
remaining period of suspension if the delay in the completion of
disciplinary proceedings against such workman is not directly
attributable to the conduct of such workman.
(2) If any dispute arises regarding the subsistence allowance
payable to a workman under sub-section (1), the workman or the
employer concerned may refer the dispute to the Labour Court,
constituted under the Industrial Disputes Act, 1947 (14 of 1947),
within the local limits of whose jurisdiction the industrial
establishment wherein such workman is employed is situate and the
Labour Court to which the dispute is so referred shall, after giving the
parties an opportunity of being heard, decide the dispute and such
decision shall be final and binding on the parties.
(3) Not with standing anything contained in the foregoing
provisions of this section, where provisions relating to payment of
subsistence allowance under any other law for the time being in force
in any State are more beneficial than the provisions of this section, the
provisions of such other law shall be applicable to the payment of
subsistence allowance in that State.]
11. Certifying Officers and appellate authorities to have powers
of Civil Court. -
(1) Every Certifying Officer and appellate authority shall have all
the powers of a Civil Court for the purposes of receiving evidence,
administering oaths, enforcing the attendance of witnesses, and
compelling the discovery and production of documents, and shall be
deemed to be a Civil Court within the meaning of [Sections 345 and
346 of the Code of Criminal Procedure, 1973 (2 of 1974)]26
27
[(2) Clerical or arithmetical mistakes in any order passed by a
Certifying officer or appellate authority, or errors arising therein from
any accidental slip or omission may, at any time, be corrected by that
Officer or authority or the successor in office of such officer or
authority, as the case may be.]
378
12. Oral evidence in contradiction of standing orders not

admissible. --No oral evidence having the effect of adding to or
otherwise varying or contradicting standing orders finally certified
under this Act shall be admitted in any Court.
28
[12-A. Temporary application of model standing orders.--(1)
Notwithstanding anything contained in Sections to12, for the period
commencing on the date on which this Act becomes applicable to an
industrial establishment and ending with the date on which the
standing orders as finally certified under this Act come into operation
under Section 7 in that establishment, the prescribed model standing
orders shall be deemed to be adopted in that establishment, and the
provisions of Section 9, sub-section (2) of Section 13 and Section 13-A
shall apply to such model standing orders as they apply to the
standing orders so certified.
26
Added by ibid.
27
The original S. 11 renumbered as sub-section (1) and sub-
section (2) added by Act No. 39 of 1963
28 Added by Act No. 39 of 1963.
379
(2) Nothing contained in sub-section (1) shall apply to an

industrial establishment in respect of which the appropriate
Government is the Government of the State of Gujarat or the
Government of the State of Maharashtra.]
Section 12-A.--Where there are two categories of workmen, one in
respect of the daily rated workmen and the other in respect of the
monthly rated workmen, if there are certified standing orders in
respect of the daily rated workers only, the prescribed model
standing orders should be deemed to have been adopted for those
who are employed on the monthly basis until such categories have
their own certified standing orders,
13. Penalties and procedure.--(1) An employer who fails to

submit draft standing orders as required by Section 3 or who modifies
his standing orders otherwise than in accordance with Section 10,
shall be punishable with fine which may extend to five thousand
rupees, and in the case of a continuing offence with a further fine
which may extend to two hundred rupees for every day after the first
during which the offence continues.
(2) An employer who does any act in contravention of the
standing orders finally certified under this Act for his industrial
establishment shall be punishable with fine which may extend to one
hundred rupees, and in the case of a continuing offence with a further
fine which may extend to twenty-five rupees for every day after the
first during which the offence continues.
(3) No prosecution for an offence punishable under this section
shall be instituted except with the previous sanction of the
appropriate Government.
(4) No Court inferior to that of 29[a
Metropolitan or Judicial
Magistrate of the second class] shall try any offence under this
section.
30
[13-A. Interpretation, etc., of standing orders.--If any question
arises as to the application or interpretation of a standing order
380
certified under this Act, any employer or workman [or a trade union
or other representative body of the workmen]31 may refer the
question to any one of the Labour Courts constituted under the
Industrial Disputes Act,. 1947, and specified for the disposal of such
proceeding by the appropriate Government by notification in the
Official Gazette, and the Labour Court to which the question is so
referred shall, after giving the parties an opportunity of being heard,
decide the question and such decision shall be final and binding on
the parties.
13-B. Act not to apply to certain industrial establishments.--

Nothing in this Act shall apply to an industrial establishment in so
far as the workmen employed therein are persons to whom the
Fundamental and Supplementary Rules, Civil Services
(Classification, Control and Appeal)Rules, Civil Services (Temporary
Service) Rules, Revised Leave Rules, Civil Service Regulations,
Civilians in Defense Service (Classification, Control and Appeal)
Rules or the Indian Railway Establishment Code or any other rules or
regulations than may be notified in this behalf by the appropriate
Government in the Official Gazette, apply.]
29 Sub., by Act no. 18 of 1982 (w.e.f. 17-5-1982)
30 Ins. by Act No. 36 of 1956, S. 32 (w.e.f. 10.3.1957).
31 Ins. by Act No.18 of 1982 (w.e.f. 17-5-1982).
381
14. Power of exempt. --The appropriate Government may by

notification in the Official Gazette exempt, conditionally or
unconditionally any industrial establishment or class of industrial
establishments from all or any of the provisions of this Act.
32
[14-A. Delegation of powers. --The appropriate
Government may by notification in the Official Gazette, direct that
any power exercisable by it under this Act or any rules made
thereunder shall, in relation to such matters and subject to such
conditions, if any, as may be specified in the direction, be exercisable
also-
(a) Where the appropriate Government is the Central

Government, by such officer or authority subordinate to the Central
Government or by the State Government, or by such officer or
authority subordinate to the State Government, as may be specified
in the notification;
(b) where the appropriate Government is a State Government,
by such officer or authority subordinate to the State Government, as
15. Power to make rules. --(1) The appropriate Government may
after previous publication, by notification in the Official Gazette,
make rules to carry out the purposes of this Act.
foregoing power, such rules may--
(a) prescribe additional matters to be included in the Schedule, and

the procedure to be followed in modifying standing orders
certified under this Act in accordance with any such addition;
(b) set out model standing orders for the purposes of this Act;
(c) prescribe the procedure of Certifying Officers and appellate
authorities;
(d) Prescribe the fee which may be charged for copies of standing
orders entered in the register of standing orders;
382
(e) provide for any other matter which is to be or may be prescribed;

Provided that before any rules are made under clause (a)
representatives of both employers and workmen shall be consulted
by the appropriate Government.
33
[(3) Every rule made by the Central Government under this
section shall be laid as soon as may be after it is made, before each
House of Parliament while it is in session for a total period of thirty
days which may be comprised in one session or 34 [in two or more
successive sessions, and if, before the expiry of the session
aforesaid] both Houses agree in making any modification in the rule
or both Houses agree that the rule should not be made, the rule shall
the case may be ; so however that any such modification or
previously done under that rule.]
The Schedule
32
Ins. by Act No. 16 of 1961, S. 5, and sub. by Act No. 39 of 1963.
33
Ins.by S. 6 of Act No. 16 of 1961.
34
Sub. By Act No. 18 of 1982 (w.e.f. 17-5-1982).
383
[See Sections 2 (g) and 3(2)]
Matters to be provided in standing orders under this act
1. Classification of workmen, e.g., whether permanent,

temporary, apprentices, probationers, or badlis.
2. Manner of intimating to workmen periods and hours of
work, holidays, pay-days and wage rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of, procedure in applying for, and the authority
which may grant leave and holidays.
6. Requirement to enter premises by certain gates, a liability to
search.
7. Closing and reporting of sections of the industrial
establishment, temporary stoppages of work and the rights and
liabilities of the employer and workmen arising there from.
8. Termination of employment, and the notice thereof to be
given by employer and workmen.
9. Suspension or dismissal for misconduct, and acts or
omissions which constitute misconduct.
10. Means of redress for workmen against unfair treatment or
wrongful exactions by the employer or his agents or servants.
11. Any other matter which may be prescribed.
384
Sec. 2 The Minimum Wages Act, 1948 1
THE MINIMUM WAGES ACT, 1948
(ACT NO. XI OF 1948)
[15 March 1948] An Act to provide for fixing minimum rates of wages in
certain employments WHEREAS it is expedient to provide for fixing
minimum rates of wages in certain employments;
It is hereby enacted as follows: -
Short title and extent. - (1) This Act may be called The
1.
Minimum Wages Act, 1948.
(2) It extends 1[to the whole of India] 2[***].
2. Interpretation. - In this Act, unless there is anything

repugnant in the subject or context, -
3[(a) “adolescent” means a person who has completed his fourteenth
year of age but has not completed his eighteenth year;
(aa) “adult” means a person who has completed his eighteenth year
of age]
(b) “appropriate Government” means -

(i) in relation to any scheduled employment carried on by or
under the authority of the 4[Central Government or a railway
administration] or in relation to a mine, oil field or major port,
or any corporation established by 5[a Central Act], the Central
Government; and
(ii) in relation to any other scheduled employment the
6[State Government;
7[(bb) “child” means a person who has not completed his fourteenth
year of age;]
385
(c) “competent authority” means the authority appointed by the

appropriate Government by notification in its Official Gazette
to ascertain from time to time the cost of living index number
applicable to the employees employed in the scheduled
employments specified in such notification;
(d) “cost of living index number” in relation to employees in any
scheduled employment in respect of which minimum rates of
wages have been fixed, means the index number ascertained
and declared by the competent authority by notification in
Official Gazette to be the cost of living index number
applicable to employees in such employment;
1 Subs. by the Adaptation of Laws Order 1950 for `all the Provinces
of India.”
2 Words “except the State of Jammu and Kashmir” omitted by 51 of
1970 (w.e.f 01-09- 1971)
3 Substituted for clause (a) by the Child Labour (Prohibition and
Regulation) Act, 1986.
4 Subs. by the Minimum Wages (Amendment) Act 1957.
5 Subs. by the Adaptation of Laws Order, 1950.
6 Amended by the Minimum Wages (Amendment) Act, 1954.
7 Inserted by the Child Labour (Prohibition and Regulation) Act,
1986.
386
2 The Minimum Wages Act, 1948 Sec. 2
(e) “employer” means any person who employs, whether directly

or through another person, or whether on behalf of himself or
any other person, one or more employees in any scheduled
employment in respect of which minimum rates of wages
have been fixed under this Act, and includes, except in sub-
section (3) of section 26-
(i) in a factory where there is carried on any scheduled
employment in respect of which minimum rates of wages have
been fixed under this Act, any person named under clause (f) of
sub- section (1) of section 7 of the Factories Act, 1948 (63 of
1948) 1[as manager of the factory;
(ii) in any scheduled employment under the control of any
Government in India in respect of which minimum rates of
wages have been fixed under this Act, the person or authority
appointed by such Government for the supervision and
control of employees or where no person or authority is so
appointed, the head of the Department;
(iii) in any scheduled employment under any local authority in
respect of which minimum rates of wages have been fixed
under this Act, the person appointed by such authority for the
supervision and control of employees or where no person is so
appointed the Chief Executive Officer of the local authority;
(iv) in any other case where there is carried on any scheduled
employment in respect of which minimum rates of wages
have been fixed under this Act, any person responsible to the
owner for the supervision and control of the employees or for
the payment of wages;
(f) “prescribed” means prescribed by rules made under this Act;
(g) “scheduled employment” means an employment specified in
the schedule, or any process or branch of work forming part of
such employment;
387
(h) “wages” means all remuneration, capable of being expressed

in terms of money which would if the terms of the contract of
employment express or implied, were fulfilled, be payable to
a person employed in respect of his employment or of work
done in such employment 2[ and includes house rent
allowance] but does not include-
(i) the value of -
(a) any house-accommodation, supply of light, water, medical
attendance; or
order of the appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund
or Provident Fund or under any scheme of social insurance;

2 Ins. by the Minimum Wages (Amendment) Act, 1957.
388
(iii) any travelling allowance or the value of any travelling

concession;
(iv) any sum paid to the person employed to defray special
expenses entailed on him by the nature of his employment; or
(v) any gratuity payable on discharge.
(j) “employee” means any person who is employed for hire or
reward to do any work skilled or unskilled, manual or clerical,
in a scheduled employment in respect of which minimum
rates of wages have been fixed; and includes an out worker to
whom any articles or materials are given out by another person,
to be made up, cleaned, washed, altered, ornamented,
finished, repaired, adapted or otherwise processed for sale for
the purposes of the trade or business of that other person
where the process is to be carried out either in the home of the
out-worker or in some other premises not being premises
under the control and management of that other person; and
also includes an employee declared to be an employee by the
appropriate Government; but does not include any member of
the Armed Forces of the 1[Union].
Fixing of minimum rates of wages. - 2[(1) The appropriate
3.
Government shall, in the manner hereinafter provided, -
3(a) fix the minimum rates or wages payable to employees employed
in an employment specified in Part I or Part II of the Schedule and in
an employment added to either part by notification under section 27:
Provided that the appropriate Government may, in respect of

employees employed in an unemployment specified in Part II of the
Schedule, instead of fixing minimum rates of wages under this clause
for the whole State, fixing such rates for a part of the State or for any
389
specified class or classes of such employment in the whole State or

any part thereof];
(b) review at such intervals as it may think fit, such intervals not
exceeding five years, the minimum rates of wages so fixed and revise
the minimum rates, if necessary:
4[Provided that, where for any reason the appropriate

Government has not reviewed the minimum rates of wages fixed by
it in respect of any scheduled employment within any interval of five
years, nothing contained in this clause shall be deemed to prevent it
from reviewing the minimum rates after the expiry of the said period
of five years and revising them, if necessary, and until they are so
revised the minimum rates in force immediately before the expiry of
the said period of five years shall continue in force.]
5[(IA) Notwithstanding anything contained in sub-section (1), the

appropriate Government may refrain from fixing minimum rates of
wages in respect of any scheduled employment in which there are in
the whole State less than one thousand employees
1 Subs. by the Adaptation of Laws Order, 1950

2 Subs. by the Minimum Wages (Amendment) Act, 1954.
3 Subs. by the Minimum Wages
(Amendment) Act, 1961. 4 Inserted
by Act. 30 of 1957, s. 3 (w.e.f 17-09-
1957)
390
engaged in such employment, but if at any time, the appropriate

Government comes to a finding after such inquiry as it may make or
cause to be made in this behalf that the number of employees in any
scheduled employment in respect of which it has refrained from
fixing minimum rates of wages has risen to one thousand or more, it
shall fix minimum rates of wages payable to employees in such
employment as soon as may be after such finding.
(2) The appropriate Government may fix -

(a) a minimum rate of wages for time work (hereinafter referred to
as “a minimum time rate”);
(b) a minimum rate of wages for piece work (hereinafter referred
to as “a minimum piece rate”);
(c) a minimum rate of remuneration to apply in the case of
employees employed on piece work for the purpose of securing
to such employees a minimum rate of wages on a time work
basis (hereinafter referred to as “a guaranteed time rate”).
(d) a minimum rate (whether a time rate or a piece rate) to apply
in substitution for the minimum rate which would otherwise
be applicable in respect of overtime work done by employees
(hereinafter referred to as “overtime rate”).
1[2(2-A) Where in respect of an industrial dispute relating to the
rate of wages payable to any of the employees employed in a scheduled
employment any proceeding is pending before a Tribunal or National
Tribunal under the Industrial Disputes Act, 1947 (14 of 1947), or before
any like authority under any other law for the time being in force or an
award made by any Tribunal, National Tribunal or such authority is
in operation, and a notification fixing or revising the minimum rates
of wages in respect of the scheduled employment is issued during the
pendency of such proceeding or the operation of the award; then,
notwithstanding anything contained in this Act, the minimum rates of
wages so fixed or so revised shall not apply to those employees during
391
the period in which the proceeding is pending and the award made
therein is in operation or, as the case may be, where the notification is
issued during the period of operation of any award, during that
period; and where such proceeding or award relates to the rates of
wages payable to all the employees, in the scheduled employment, no
minimum rates of wages shall be fixed or revised in respect of that
employment during the said period.]
(3) In fixing or revising minimum rates of wages under this section-

(a) different minimum rates of wages may be fixed for-
(i) different scheduled employment;
(ii) different classes of work in the same scheduled
employments;
(iii) adults, adolescents, children and apprentices;
(iv) different localities;
1 Added by the Minimum Wages (Amendment) Act, 1961.
392
1[(b) minimum rates of wages may be fixed by any one or more of the
following wage periods, namely, -
(i) by the hour,

(ii) by the day,
(iii) by the month, or
(iv) by such other larger wage period as may be prescribed and
where such rates are fixed by the day or by the month, the
manner of calculating wages for a month or for a day, as the
case may be, indicated]:
Provided that where any wage periods have been fixed under
section 4 of the Payment of Wages Act, 1936 (4 of 1936), minimum
wages shall be fixed in accordance therewith.
4.Minimum rate of wages. - (1) Any minimum rate of wages

fixed or revised by the appropriate Government in respect of
scheduled employments under sec. 3 may consist of-
(i) a basic rate of wages and a special allowance at a rate to be
adjusted, at such intervals and in such manner as the
appropriate Government may direct, to accord as nearly as
practicable with the variation in the cost of living index
number applicable to such workers (hereinafter referred to as
the “cost of living allowance”); or
(ii) a basic rate of wages with or without the cost of living
allowance and the cash value of the concessions in respect of
supplies of essential commodities at concessional rates, where
so authorized; or
(iii) an all-inclusive rate allowing for the basic rate, the cost of living
allowance and the cash value of the concessions, if any.
(2)The cost of living allowance and the cash value of the
concessions in respect of supplies of essential commodities at
concessional rates shall be computed by the competent authority at
393
such intervals and in accordance with such directions as may be

specified or given by the appropriate Government.
2[5. Procedure for fixing and revising minimum wages. - (1) In

fixing minimum rates of wages in respect of any scheduled
employment for the first time under this Act or in revising minimum
rates of wages so fixed, the appropriate Government shall either-
(a) appoint as many committees and sub-committees as it

considers necessary to hold enquiries and advise it in respect
of such fixation or revision, as the case may be, or
(b) by notification in the Official Gazette, publish its proposals for
the information of persons likely to be affected thereby and
specify a date, not less than two months from the date of the
notification, on which the proposals will be taken into
consideration.
(2) After considering the advice of the committee or committees,
appointed under clause (a) of sub-section (1), or as the case may be
all representations
1 Subs. by the M. W. (Amendment) Act, 1957.

2 Subs. by the Minimum Wages (Amendment) Act. 1957.
394
received by it before the date specified in the notification under clause

(b) of that sub-section, the appropriate Government shall, by
notification in the Official Gazette, fix, or, as the case may be, revise the
minimum rates of wages in respect of each scheduled employment,
and unless such notification otherwise provides, it shall come into
force on the expiry of three months from the date of its issue:
Provided that where the appropriate Government proposes to

revise the minimum rates of wages by the mode specified in clause (b)
of sub-section (1) the appropriate Government shall consult the
Advisory Board also.]
6. [Advisory Committees and sub-committees]- Repealed by

the Minimum Wages (Amendment) Act, 1957 (30 of 1957), section 5
(w.e.f 19-9-1957).]
7. Advisory Board. - (1) For the purpose of coordinating the

1
work of [committees and sub-committees appointed under section
5] and advising the appropriate Government, generally in the matter
of fixing and revising minimum rates of wages, the appropriate
Government shall appoint an Advisory Board.
8. Central Advisory Board. - (1) For the purpose of advising

the Central and 2[State Governments] in the matters of the fixation
and revision of minimum rates of wages and other matters under this
Act and for coordinating the work of the Advisory Boards, the Central
Government shall appoint a Central Advisory Board.
(2) The Central Advisory Board shall consist of persons to be
nominated by the Central Government representing employers and
employees in the scheduled employments, who shall be equal in
number, and independent persons not exceeding one-third of its total
number of members; one of such independent persons shall be
appointed the Chairman of the Board by the Central Government.
395
9. Composition of committees, etc.- Each of the committees,

sub- committees, 3[***] and the Advisory Board shall consist of
persons to be nominated by the appropriate Government
representing employers and employees in the scheduled
employments, who shall be equal in number, and independent
persons not exceeding one-third of its total number of members, one of
such independent persons shall be appointed the Chairman by the
appropriate Government.
4[10. Correction of errors. - (1) The appropriate Government
may, at any time, by notification in the Official Gazette, correct
clerical or arithmetical mistakes in any order fixing or revising
minimum rates of wages under this Act, or errors arising therein from
any accidental slip or omission.
(2) Every such notification shall, as soon as may be after it is

issued, be placed before the Advisory Board for information.]
11. Wages in kind. - (1) Minimum wages payable under the

Act shall be paid in cash.

2 Subs. by the Adaptation of Laws Order, 1950
3 Omitted by the Minimum Wages (Amendment) Act. 1957.
396
(2) Where it has been the custom to pay wages wholly or

partly in kind, the appropriate Government being of the opinion that
it is necessary in the circumstances of the case may, by notification in
the Official Gazette, authorize the payment of minimum wages either
wholly or partly in kind.
(3) If the appropriate Government is of the opinion that
provisions should be made for the supply of essential commodities at
concessional rates, the appropriate Government may, by notification
in the Official Gazette, authorize the provision of such supplies at
concessional rates.
(4) The cash value of wages in kind and of concessions in
respect of supplies of essential commodities at concessional rates
authorized under sub-sections (2) and (3) shall be estimated in the
prescribed manner.
12. Payment of minimum rates of wages.- (1) Where in

respect of any scheduled employment a notification under section 5
1[***] is in force, the employer shall pay to every employee engaged in
a scheduled employment under him, wages at a rate not less than the
minimum rates of wages fixed by such notification for that class of
employees in that employment without any deductions except as
may be authorized within such time and subject to such conditions as
may be prescribed.
(2) Nothing contained in this section shall affect the
provisions of the Payment of Wages Act, 1936 (IV of 1936).
13. Fixing hours for a normal working day, etc.- 2(1) In
regard to any scheduled employment minimum rates of wages in
Government may-
(a) fix the number of hours of work which shall constitute a
normal working day, inclusive of one or more specified
intervals;
397
(b) provide for a day of rest in every period of seven days which
shall be allowed to all employees or to any specified class of
employees and for the payment of remuneration in respect of
such days of rest;
(c) provide for payment for work on a day of rest at a rate not less
than the overtime rate.
3[(2) The provisions of sub-section (1) shall, in relation to the
following classes of employees, apply only to such extent and subject
to such conditions as may be prescribed: -
(a) employees engaged on urgent work or in any emergency

which could not have been foreseen or prevented;
(b) employees engaged in work in the nature of preparatory or
complementary work which must necessarily be carried on
outside the limits laid down for the general working in the
employment concerned;
(c) employees whose employment is essentially intermittent;
(d) employees engaged in any work which for technical reasons
has to be completed before the duty is over;
1 Deleted by Minimum Wages (Amendment) Act, 1957.

2 Figure “1” inserted, by Minimum Wages (Amendment) Act,
1957.
398
(e) employees engaged in a work which could not be carried on

except at times dependent on the irregular action of natural
forces.
(3) For the purposes of Clause (c) of sub-section (2),
employment of an employee is essentially intermittent when it is
declared to be so by the appropriate Government on the ground that
the daily hours of duty of the employee, or if there be no daily hours
of duty as such for the employee, the hours of duty, normally include
periods of inaction during which the employee may be on duty but is
not called upon to display either physical activity or sustained
attention.]
14. Overtime.- (1) Where an employee, whose minimum

rates of wages is fixed under this Act by the hour, by the day or by
such a longer wage-period as may be prescribed, works on any day
in excess of the number of hours constituting a normal working day,
the employer shall pay him for every hour or for part of an hour so
worked in excess at the overtime rate fixed under this Act or under
any law of the appropriate Government for the time being in force
whichever is higher.
(2) Nothing in this Act shall prejudice the operation of the
provisions of section 59 of the Factories Act, 1948 (63 of 1948), 1[in any
case where those provisions are applicable]
15. Wages of worker who works for less than normal

working day.- If an employee whose minimum rates of wages has
been fixed under this Act by the day, works on any day on which he
was employed for a period less than the requisite number of hours
constituting a normal working day, he shall, save as otherwise
hereinafter provided, be entitled to receive wages in respect of work
done by him on that day as if he had worked for a full normal working
day:
399
Provided, however, that he shall not be entitled to receive wages

for a full normal working day, -
(i) in any case where his failure to work is caused by his

unwillingness to work and not by the omission of the employer
to provide him with work, and
(ii) in such other cases and circumstances as may be prescribed.
16. Wages for two or more classes of work.- Where an

employee does two or more classes of work to each of which a
different minimum rate of wages is applicable, the employer shall pay
17. Minimum time rate wages for piece-work. - Where an

employee employed on piece-work for which minimum time rate and
not minimum piece rate has been fixed under this Act, the employer
shall pay to such employee wages at not less than the minimum time
rate.
18. Maintenance of registers and records. - (1) Every

employer shall maintain such registers and records giving such
particulars of employees employed by him, the work performed by
them, the wages paid to them, the
400
receipts given by them and such other particulars and in such forms
as may be prescribed.
(2) Every employer shall keep exhibited, in such manner, as

may be prescribed in the factory, workshop or place where the
employees in the scheduled employment may be employed, or in the
case of out-workers, in such factory, workshop or place as may be used
for giving out work to them, notices in the prescribed form containing
prescribed particulars.
(3) The appropriate Government may, by rules made under
this Act, provide for the issue of wage books or wage slips to
employees employed in any scheduled employment in respect of
which minimum rates of wages have been fixed and prescribe the
manner in which entries shall be made and authenticated in such wage
books or wage slips by the employer or his agent.
19. Inspectors. - (1) The appropriate Government may, by
notification in the Official gazette, appoint such persons as it thinks fit
to be Inspectors for the purposes of this Act, and define the local limits
within which they shall exercise their functions.
(2) Subject to any rules made in this behalf, an Inspector may,
within the local limits for which he is appointed
(a) enter at all reasonable hours, with such assistant (if any), being
persons in the service of the 1[Government] or any local or
other public authority, as he thinks fit, 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, record of wages or
notices required to be kept or exhibited by or under this Act or
rules made thereunder, and require the production thereof for
inspection;
(b) examine any person whom he finds in any such premises or
401
place and who, he has reasonable cause to believe, is an

employee employed therein or an employee to whom work is
given out therein;
(c) require any person giving out-work and any out-workers to
give any information, which is in his power to give, with
respect to the names and addresses of the persons, to, for and
from whom the work is given out or received, and with
respect to the payment to be made for the work;
(d) 2[seize or take copies of such register, record of wages or notices
or portions thereof as he may consider relevant, in respect of an
offence under this Act which he has reason to believe has been
committed by an employer; and]
(e) exercise such other powers as may be prescribed.
(3) Every Inspector shall be deemed to be a public servant
within the meaning of the Indian Penal Code (45 of 1860).
3[(4) Any person required to produce any document or thing or
to give any information by an Inspector under sub-section (2) shall be
deemed to be legally
1 Substituted by the A.O 1950 for “Crown”

2 Subs. by Minimum Wages (Amendment) Act. 1957.
3 Ins. by the Minimum Wages (Amendment) Act. 1957.
402
bound to do so within the meaning of section 175 and section 176 of

the Indian Penal Code (45 of 1860).]
20. Claims.- (1) The appropriate Government may, by

notification in the Official Gazette, appoint 1[any Commissioner for
workmen's Compensation or any officer of the Central Government
exercising functions as a Labour Commissioner for any region, or any
officer of the State Government not below the rank of Labour
Commissioner or any] other officer with experience as a judge of a
Civil Court or as a stipendiary Magistrate to be the Authority to hear
and decide for any specified area all claims arising out of the payment
of less than the minimum rates of wages 2[or in respect of the payment
of remuneration for days of rest for work done on such days under
clause (b) or clause (c) of sub-section (1) of section 13 or of wages at
the overtime rate under section 14,] to employees employed or paid
in that area.
(2) 3[Where an employee has any claim of the nature referred
to in sub- section (1)], the employee himself, or any legal practitioner
or any official of a registered trade union authorized in writing to act
on his behalf, or any Inspector, or any person acting with the
permission of the Authority appointed under sub-section (1), may
apply to such Authority for a direction under sub- section (3):
Provided that every such application shall be presented within
six months from the date on which the minimum wages 4[or other
amounts] became payable:
Provided further that any application 5[may be admitted after the

said period of six months when the applicant satisfies the Authority
that he had sufficient cause for not making the application within
such period.
403
6[(3) When any application under sub-section (2) is entertained the

Authority shall hear the applicant and the employer, or give them an
opportunity of being heard, and after such further inquiry, if any, as it
may consider necessary, may, without prejudice to any other penalty
to which the employer may be liable under this Act, direct-
(i) in the case of a claim arising out of payment of less than the
minimum rates of wages, the payment to the employee of the
amount by which the minimum wages payable to him exceed
the amount actually paid, together with the payment of such
compensation as the Authority may think fit, not exceeding
ten times the amount of such excess;
(ii) in any other case, the payment of the amount due to the
employee together with the payment of such compensation as
the Authority may think fit, not exceeding ten rupees;
and the Authority may direct payment of such compensation in cases
where the excess or the amount due is paid by the employer to the
employee before the disposal of the application.
1 Subs by the Minimum Wages (Amendment) Act. 1957.

2 Ins. by the Minimum Wages (Amendment) Act, 1957 dt.
15th July 1976, (w.e.f. 1st Feb. 1977).
3 Substituted by Act 30 of 1957, s. 12 (w.e.f 19-9-1957).

6 Subs. by the Minimum Wages (Amendment) Act, 1957
404
Sec. 22B The Minimum Wages Act, 1948 11
(4) If the authority hearing any application under this section

is satisfied that it was either malicious or vexatious, it may direct that
a penalty not exceeding fifty rupees be paid to the employer by the
person presenting the application.
(5) Any amount directed to be paid under this section may be
recovered-
(a) if the Authority is a Magistrate, by the Authority as if it were
a fine imposed by the Authority as a Magistrate, or
(b) if the Authority is not a Magistrate, by any Magistrate, to
whom the Authority makes application in this behalf, as if it
were a fine imposed by such Magistrate.
(6) Every direction of the Authority under this section shall be final.
(7) Every Authority appointed under sub-section (1) 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 XXXV of the
Code of Criminal Procedure, 1898 (5 of 1898).
21. Single application in respect of a number of
employees.- 1[(1) Subject to such rules as may be prescribed, a single
application] may be presented under section 20 on behalf or in respect
of any number of employees employed in the scheduled employment
in respect of which minimum rates of wages have been fixed and in
such cases the maximum compensation which may be awarded under
sub-section (3) of section 20 shall not exceed ten times the aggregate
amount of such excess, 2[or ten rupees per head as the case may be].
(2)The Authority may deal with any number of separate
pending applications presented under section 20 in respect of
employees in the scheduled employments in respect of which
minimum rates of wages have been fixed, as a single application
405
presented under sub-section (1) of this section and the provisions of

that sub- section shall apply accordingly.
3[22. Penalties for certain offences. - Any employer who—
(a) Pays to any employee less than the minimum rates of wages
fixed for that employee's class of work, or less than the amount
due to him under the provisions of this Act or
(b) Contravenes any rule or order made under section 13
shall be punishable with imprisonment for a term which may extend
to six months or with fine which may extend to five hundred rupees
or with both:
Provided that in imposing any fine for an offence under this

section the Court shall take into consideration the amount of any
compensation already awarded against the accused in any
proceedings taken under section 20.
22A. General provision for punishment of other offences. - Any

employer who contravenes any provision of this Act or of any rule or
of order made thereunder shall if no other penalty is provided for
such contravention by this Act, be punishable with fine which may
extend to five hundred rupees.

3 Subs. and Ins. by the Minimum Wages (Amendment) Act, 1957.
406
12 The Minimum Wages Act, 1948 Sec. 22B
22B. Cognizance of Offences. - (1) No Court shall take cognizance of

a complaint against any person for an offence-
(a) under clause (a) of section 22 unless an application in respect of

the facts constituting such offence has been presented under
section 20 and has been granted wholly or in part, and the
appropriate Government or an officer authorized by it in this
behalf has sanctioned the making of the complaint;
(b) under clause (b) of section 22 or under section 22-A, except on a
complaint made by, or with the sanction of, an Inspector.
(2) No Court shall take cognizance of an offence -
(a) under clause (a) or clause (b) of section 22, unless complaint
thereof is made within one month of the grant of sanction
under this section;
(b) under section 22-A, unless the complaint thereof is made within
six months of the date on which the offence is alleged to have
been committed.
1[22C. Offences by companies.- (1) If the person committing
any offence under this Act is a company, every person who at the time
the offence was committed was in charge of, and was responsible, to
the company for the conduct of the business of the company as well as
the company shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly;
Provided that nothing contained in this sub-section shall render

any such person liable to any punishment provided in this Act if he
proves that the offence was committed without his knowledge or that
he exercised all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1),

where any offence under this Act has been committed by a company
and it is proved that the offence has been committed with the consent
407
or connivance of, or is attributable to any neglect on the part of any

director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer of the company shall also
be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
Explanation - For the purposes of this section, -
(a) “Company” means anybody corporate and includes a firm or

other association of individuals, and
(b) “Director” in relation to a firm means a partner in the firm.
22D. Payment of undisbursed amounts due to employees.- All

amounts payable by an employer to an employee as the amount of
minimum wages of the employee under this Act or otherwise due to
the employee under this Act or any rule or order made thereunder
shall, if such amounts could not or cannot be paid to the employee on
account of his death before payment or on account of his whereabouts
not being known, be deposited with the prescribed authority who
shall deal with the money so deposited in such manner as may be
prescribed.
1 Subs. and Ins. new section by Minimum Wages (Amendment)

Act, 1957.
408
22E. Protection against attachment of assets of employer with

Government.- Any amount deposited with the appropriate
Government by an employer to secure the due performance of a
contract with that Government and any other amount due to such
employer from that Government in respect of such contract shall not be
liable to attachment under any decree or order of any Court in respect
of any debt or liability incurred by the employer other than any debt or
liability incurred by the employer towards any employee employed in
connection with the contract aforesaid.
22F. Application of Payment of Wages Act, 1936, to scheduled

employments.- (1) Notwithstanding anything contained in the
Payment of Wages Act, 1936 (4 of 1936), the appropriate Government
may, by notification, in the Official Gazette, direct that, subject to the
provisions of sub-section (2), all or any of the provisions of the said Act
shall with such notifications, if any, as may be specified in the
notification, apply to wages payable to employees in such scheduled
employment as may be specified in the notification.
(2) Where all or any of the provisions of the said Act are applied
to wages payable to employees in any scheduled employment under
sub-section (1), the Inspector appointed under this Act shall be
deemed to be the Inspector for the purpose of enforcement of the
provisions so applied within the local limits of his jurisdiction.
23. Exemption of employer from liability in certain cases.-

Where an employer is charged with an offence against this Act, he
shall be entitled, upon complaint duly made by him, to have any other
person whom he charges as the actual offender, brought before the
Court at the time appointed for hearing the charge; and if, after the
commission of the offence has been proved, the employer proves to the
satisfaction of the Court-
(a) that he has used due diligence to enforce the execution of this
act, and
409
(b) that the said other person committed the offence in question
without his knowledge, consent or connivance,
that other person shall be convicted of the offence and shall be liable to
the like punishment as if he were the employer and the employer shall
be discharged:
Provided that in seeking to prove, as aforesaid, the employer

may be examined on oath, and the evidence of the employer or his
witness, if any, shall be subject to cross examination by or on behalf of
the person whom the employer charges as the actual offender and by
the prosecution.
24. Bar of suits. -No Court shall entertain any suit for the
recovery of wages in so far as the sum so claimed-
(a) forms the subject of an application under section 20 which has
been presented by or on behalf of the plaintiff, or
(b) has formed the subject of a direction under that section in
favour of the plaintiff, or
(c) has been adjudged in any proceeding under that section not
to be due to the plaintiff, or
(d) could have been recovered by an application under that
section.
25. Contracting out. - Any contract or agreement, whether

made before or after the commencement of this Act, whereby an
employee either relinquishes or
410
reduces his right to a minimum rate of wages or any privilege or

concession accruing to him under this Act shall be null and void in so
far as it purports to reduce the minimum rate of wages fixed under
this Act.
26. Exemptions and Exceptions. - (1) The appropriate

Government may, subject to such conditions if any as it may think fit
to impose, direct that the provisions of this Act shall not apply in
relation to the wages payable to disabled employees.
(2) The appropriate Government may, if for special reasons it
thinks so fit, by notification in the Official Gazette, direct that 1[subject
to such conditions and] for such period as it may specify the
provisions of this Act or any of them shall not apply to all or any class
of employees employed in any scheduled employment or to any
locality where there is carried on a scheduled employment.
2[(2-A). The appropriate Government may, if it is of opinion that,
having regard to the terms and conditions of service applicable to any
class of employees in a scheduled employment generally or in a
scheduled employment in a local area 3[or to any establishment or a
part of any establishment in a scheduled employment] it is not
necessary to fix minimum wages in respect of such employees of that
class 4[or in respect of employees in such establishment or part of any
establishment ] as are in receipt of wages exceeding such limit as may
be prescribed in this behalf, direct by notification in the Official Gazette
and subject to such conditions, if any, as it may think fit to impose,
that the provisions of this Act or any of them shall not apply in relation
to such employees:
(3) Nothing in this Act shall apply, to the wages payable by an

employer to a member of his family who is living with him and is
dependent on him.
411
Explanation - In this sub-section a member of the employer's

family shall be deemed to include his or her spouse or child or parent
or brother or sister.
27. Power of State Government to add to schedule.- The

appropriate Government, after giving by notification in the Official
Gazette not less than three months’ notice of its intentions so to do,
may be like notification add to either Part of the Schedule any
employment in respect of which it is of opinion that minimum rates
of wages should be fixed under this Act, and thereupon the Schedule
shall in its application to the 5[State be deemed to be amended
accordingly.
28. Power of Central Government to give directions. - The

Central Government may give directions to a State Government as to
the carrying into execution of this Act in the State.
29. Power of the Central Government to make rules.- The

Central Government may, subject to the conditions of previous
publication, by notification in the Official Gazette, make rules
prescribing the terms of office of the members, the procedure to be
followed in the conduct of business, the method of voting, the manner
of filling up casual vacancies in membership and

5 Subs. by the Adaptation of Laws Order, 1950.
412
Sec. 30A The Minimum Wages Act, 1948 15
the quorum necessary for the transaction of business of the Central

Advisory Board.
30. Power of appropriate Government to make rules. - (1)

The appropriate Government may, subject to the condition of previous
publication, by notification in the Official Gazette, make rules for
carrying out the purposes of this Act.
(2) Without prejudice to the generality of the foregoing
power such rules may-
(a) prescribe the term of office of the members, the procedure to be
followed in the conduct of business, the method of voting, the
manner of filling up casual vacancies in membership and the
quorum necessary for the transaction of business of the
Committee, Sub- Committees, 1[***] and the Advisory Board;
(b) prescribe the method of summoning witnesses, production of
documents relevant to the subject-matter of the enquiry before
the Committees, Sub-Committees 2[***] and the Advisory
Board;
(c) prescribe the mode of computation of the cash value of wages
in kind and of concessions in respect of supplies of essential
commodities at concessional rates.
(d) prescribe the time and conditions of payment of, and the
deductions permissible from wages;
(e) provide for giving adequate publicity to the minimum rates
of wages fixed under this Act;
(f) provide for a day of rest in every period of seven days and for
the payment of remuneration in respect of such a day;
(g) prescribe the number of hours of work which shall constitute
a normal working day;
(h) prescribe the cases and circumstances in which an employee
employed for a period of less than the requisite number of
413
hours constituting a normal working day shall not be entitled to

receive wages for a full normal working day;
(i) prescribe the form of registers and records to be maintained and
the particulars to be entered in such registers and records;
(j) provide for the issue of wage books and wage slips and
prescribe the manner of making and authenticating entries in
wage books and wage slips;
(k) prescribe the powers of Inspectors for purposes of this Act;
(l) regulate scale of costs that may be allowed in proceedings
under section 20;
(m) prescribe the amount of court-fees payable in respect of
proceedings under section 20; and
(n) provide for any other matter which is to be or may be
prescribed.
3[30A. Rules made by Central Government to be laid before

Parliament. -
1[(1)] Every rule made by the Central Government under this Act shall
be laid as
1 Del. by the Minimum Wages (Amendment) Act, 1957.

2 Del. by the Minimum Wages (Amendment) Act, 1957.
3 Added by the Minimum Wages (Amendment) Act, 1961.
414
16 The Minimum Wages Act, 1948 Schedule 31
soon as may be after it is made before each House of Parliament while

it is in session for a total period of thirty days which may be comprised
in one session or in two successive sessions, and if, before the expiry
of the session in which it is so laid or the session immediately
following, both Houses, agree in making any modification in the rule,
or both Houses agree that the rule shall not be made, the rule shall
the case may be so, however, that any such modification or
previously done under that rule].
2[[2) Every rule made by the State Government under this Act
shall be laid as soon as may be after it is made, before the State
Legislature.]
3[31. Validation of fixation of certain minimum rates of wages.

- Where during the period-
(a) commencing on the 1st of April 1952 and ending with the date
of the commencement of the Minimum Wages (Amendment)
Act, 1954 (26 of 1954); or
(b) commencing on the 31st day of December, 1954 and ending
with the date of the commencement of the Minimum Wages
(Amendment) Act, 1957 (30 of 1957); or
(c) commencing on 31st day of December, 1959 and ending with
the date of the commencement of the Minimum Wages
(Amendment) Act, 1961 (31 of 1961);
minimum rates of wages have been fixed by an appropriate
Government as being payable to employees employed in any
employment specified in the Schedule in the belief or purported belief
that such rates were being fixed under clause (a) of sub- section (1) of
section 3 as in force immediately before the commencement of the
Minimum Wages (Amendment) Act, 1954 (26 of 1954), or the
415
Minimum Wages (Amendment) Act, 1957 (30 of 1957), or the Minimum

Wages (Amendment) Act, 1961 (31 of 1961), as the case may be, such
rates shall be deemed to have been fixed in accordance with law and
shall not be called in question in any Court on the ground merely that
the relevant date specified for the purpose in that clause had expired
at the time the rates were fixed:
Provided that nothing contained in this section shall extend, or be

construed to extend, to affect any person with any punishment or
penalty whatsoever by reason of the payment by him by way of
wages to any of his employees during any period specified in this
section of an amount which is less than the minimum rates of wages
referred to in this section or by reason of non-compliance during the
period aforesaid with any order or rule issued under section 13.]
The Schedule
[See Sections 2(G) and 27] Part I
1. Employment in any woolen Carpet Making or Shawl Wearing

establishment
2. Employment in any rice mill, flour mill or dal mill.
1 Section 30A renumbered as sub-section (1) thereof by Act

4 of 2005, sec. 2 and Sch. (w.e.f. 11-1-2005).
2 Inserted by Act 4 of 2005, sec. 2 and Sch. (w.e.f 11-01-2005).
416
Schedule The Minimum Wages Act, 1948 17
3. Employment in any tobacco (including bidi making)

manufactory.
4. Employment in any plantation, that is to say, any estate which
is maintained for the purpose of growing cinchona, rubber, tea
or coffee.
5. Employment in any oil mill.
6. Employment under any local authority
1[7. Employment on the construction or maintenance of roads or in
building operations.]
8. Employment in stone breaking or stone crushing.

9. Employment in any lac manufactory.
10. Employment in any mica works.
11. Employment in public motor transport.
12. Employment in tanneries and leather manufactory.
2[Employment in gypsum mines. Employment in barites mines.
Employment in bauxite mines.]
3[Employment in manganese mines.]
4[Employment in the maintenance of buildings and employment in the

construction and maintenance of runways.]
5[Employment in China clay mines. Employment in Kyanite mines.]

6[Employment in copper mines.]
7[Employment in clay mines covered under the Mines Act, 1952 (35 of
1952).]
8[Employment in magnesite mines covered under the Mines Act,

1952 [35 of 1952).]
417
9[Employment in white clay mines.]
10[Employment in stone mines.]
11[Employment in Steatite mines (including the mines producing

soapstone and Talc) covered under the Mines Act, 1952 (35 of 1952).]
12[Employment in Ochre Mines.]
1 Subs. by Minimum Wages

(Amendment) Act, 1957. 2 S.O.
3760 dated 4-12-62
3 S.O. 4030 dated 30-10-67.
4 S.O. 1987 dated 30-5-68.
5 S.O. 586 dated 5-2-70.
6 S.O. 795 dated 13-2-70.
7 S.O. 796 dated 18-2-70.
8 S.O. 2357 dated 1-7-70.
9 S.O. 3896 dated 3-9-71.
10 S.O. 3898 dated 15-9-71.
11 S.O. 2972 dated 1-7-72.
12 S.O. 2973 dated 1-7-72.
418
18 The Minimum Wages Act, 1948 Schedule
1[Employment in Asbestos Mines.] 2[Employment in Fire clay Mines.]

3[Employment in Chromite Mines.] 4[Employment in quartzite mines
Employment in quartz mines Employment in silica mines.]
5[Employment in Graphite mines.] 6[Employment in felspar mines.]
7[Employment in laterite mines.] 8[Employment in dolomite mines
Employment in redoxide mines.] 9[Employment in Wolfram mines.]
10[Employment in iron ore mines.] 11[Employment in Granite Mines.]
12[Employment in Rock Phosphate Mines.] 13[Employment in

Hematite Mines.] 14[Employment in Loading and Unloading in—
(i) Goods Shed, Parcel Offices of Railways;

(ii) Other Goodsheds, Godowns, Warehouses etc.; and
(iii) Docks and Ports.
Other things would remain the same] 15[Employment in
marble and calcite mines.] 16[Employment in Asphit cleaning in
Railways.] 17[Employment in Uranium Mines.] 18[Employment in
Ligmite Mines.]
1 S.O. 2974 dated 6-7-72.
2 S.O. 1587 dated 24-5-73.
3 S.O. 2311 dated 3-7-75.
4 S.O. 807 dated 4-2-76.
5 S.O. 558 dated 29-1-77.
6 S.O. 1823 dated 14-6-78.
7 S.O. 2945 dated 22-9-78.
419
8 S.O. 2950 dated 25-9-78.
9 S.O. 3671 dated 7-12-78.
10 S.O. 1757 dated 16-6-80.
11 S.O. 2473 dated 28-9-80.
12 S.O. 1824, dated 22-3-1983.
13 S.O. 1957, dated 11-4-1983.
14 Subs. by S.O. 90 (E), dated 25-1-2006.
15 S.O. 3455, dated 20-8-1983.
16 S.O. 2093, dated 23-4-1983.
17 S.O. 2693, dated 1-8-1986.
18 S.O. 493(E), dated 20-5-1998.
420
Schedule The Minimum Wages Act, 1948 19
1[Employment in gravel Mines.]
2[Employment in State Mines.]
3[Employment in laying of underground cables, electric lines, water

supply lines and sewerage of pipe lines.]
4[Employment of Sweeping and Cleaning excluding activities

prohibited under the Employment of Manual Scavengers and
Construction of Dry Latrines (Prohibition) Act, 1993.]
Part II
1. Employment in agriculture, that is to say, in any form of

farming, including the cultivation and tillage of the soil, dairy
farming, the production, cultivation, growing and harvesting of any
agricultural or horticultural commodity, the raising of live-stock, bees
or poultry, and any practice performed by a farmer or on a farm as
incidental to or in conjunction with farm operations (including any
forestry or timbering operations and the preparation for market and
delivery to storage or to market or to carriage for transportation to
market of farm produce).
1 S.O. 493(E), dated 20-5-1998.
2 S.O. 493(E), dated 20-5-1998.
3 S.O. 493(E), dated 20-5-1998.
4 Added by S.O. 1573(E), dated 3-11-2005 (w.e.f 7-11-2005).
421
20 The Minimum Wages (Central) Rules, 1950 Rule 1
1
THE MINIMUM WAGES (CENTRAL) RULES, 1950
[SRO 776, DATED 14-10-1950]
In exercise of the powers conferred by section 30 of the Minimum

Wages Act, 1948 (11 of 1948), the Central Government is pleased to
make the following rules, the same having been previously published
as required by the said section, namely:
CHAPTER I PRELIMINARY
Short title and extent: -These rules may be called the

1.
Minimum Wages (Central) Rules, 1950.
2. Interpretation: -In these rules, unless the context otherwise

requires, —
(a) „Act‟ means the Minimum Wages Act, 1948 (11 of 1948);
(b) „advisory committee‟ means an advisory committee appointed
under section 6 and includes an advisory sub-committee
appointed under that section;
(c) „Authority‟ means the authority appointed under sub-section
(1) of section 20;
(d) „Board‟ means the Advisory Board appointed under section 7;
(e) „Chairman‟ means a Chairman of the Advisory Board, the
Committee or the Advisory Committee, as the case may be,
appointed under section 9;
(f) „Committee‟ means a Committee appointed under clause (a) of
sub-section (1) of section 5 and includes a sub-committee
appointed under that section;
(g) „day‟ means a period of twenty-four hours beginning
at midnight;
422
(g) „Form‟ means a form appended to these rules;

(h) „Inspector‟ means a person appointed as Inspector under section
19;
(i) „registered trade union‟ means a trade union registered under the
Indian Trade Union Act, 1926 (16 of 1926);
(j) „section‟ means a section of the Act; and
(k) All other words and expressions used herein and not defined
shall have the meanings respectively assigned to them under
the Act.
Chapter II
Members and staff, and meetings of the board committee and

advisory committee
3. Term of office of the members of the Committee and the

Advisory Committee:-The term of office of the members of the
Committee or an Advisory Committee shall be such as in the opinion
of the Central Government is necessary for completing the enquiry
into the scheduled employment concerned and the Central
Government may, at the time of the constitution of the
1 Vide S.R.O. 776, dated 14-10-1950.
423
Rule 8 The Minimum Wages (Central) Rules, 1950 21
Committee or an Advisory Committee, as the case may be, fix such

terms and may, from time to time, extend it as circumstances may
require.
4. Term of office of members of the Board:-(1) Save as

otherwise expressly provided in these rules, the term of office of a
non-official member of the Board, shall be two years commencing
from the date of his nomination:
Provided that such member shall, notwithstanding the expiry of
the said period of two years, continue to hold office until his successor
is nominated.
(2) A non-official member of the Board nominated to fill a

casual vacancy shall hold office for the remaining period of the term
of office of the member in whose place he is nominated.
(3) The official members of the Board shall hold office during
the pleasure of the Central Government.
4A. Nomination of substitute members:-If a member is unable

to attend a meeting of the Committee or the Board, the Central
Government or the body which nominated him may, by notice in
writing signed on its behalf and by such member and addressed to the
chairman of the said Committee or the Board, nominate a substitute
in his place to attend that meeting. Such a substitute member shall
have all the rights of a member in respect of that meeting.
5. Travelling allowance:-A non-official member of the

Committee, an Advisory Committee or the Board shall be entitled to
draw travelling and halting allowances for any journey performed by
him in connection with his duties as such member at the rates and
subject to the conditions applicable to a Government servant of the
first class under the appropriate rules of the Central Government.
6. Staff:-(1) The Central Government may appoint a
424
Secretary to the Committee, an Advisory Committee or the Board, and

such other staff as it may think necessary, and may fix the salaries and
allowances payable to them and specify their conditions of service.
(2) (i) The Secretary shall be the Chief Executive Officer of the
Committee, the Advisory Committee or the Board; as the case may
be. He may attend the meetings of such Committee, Advisory
Committee or the Board but shall not be entitled to vote at such
meetings.
(ii) The Secretary shall assist the Chairman in convening meetings

and shall keep a record of the minutes of such meetings and shall take
necessary measures to carry out the decisions of the Committee, the
Advisory Committee or the Board, as the case may be.
7. Eligibility for denomination of the members of the

Committee, Advisory Committee and the Board: -An outgoing
member shall be eligible for re-nomination for the membership of the
Committee, Advisory Committee or the Board, of which he was a
member.
8. Resignation of the Chairman and Members of the

Committee and the Board and filling of casual vacancies:-(1) A
member of the Committee or the Board other than the Chairman may,
by giving notice in writing to the Chairman, resign his membership.
The Chairman may resign by a letter addressed to the Central
Government.
425
(2) A resignation shall take effect from the date of

communication of its acceptance or on the expiry of 30 days from the
date of resignation whichever is earlier.
(3)When a vacancy occurs or is likely to occur in the
membership of the Committee or the Board, the Chairman shall
submit a report to the Central Government immediately. The Central
Government shall take steps to fill vacancy.
9. Cessation and restoration of membership:-(1) If a

member of the Committee, Advisory Committee or the Board fails to
attend three consecutive meetings, he shall subject to the provisions of
sub-rule (2), cease to be a member thereof.
(2) A person, who ceases to be a member under sub-rule (1) shall
be given intimation of such cessation by a letter sent to him by
registered post within fifteen days from the date of such cessation.
The letter shall indicate that if he desires restoration of his
membership, he may apply therefor within thirty days from the
receipt of such letter. The application for restoration of membership, if
received within the said period, shall be placed before the Committee,
the Advisory Committee or the Board, as the case may be, and if a
majority of members present at the next meeting is satisfied that the
reasons for failure to attend three consecutive meetings are adequate,
the member shall be restored to membership immediately after a
resolution to that effect is adopted.
Disqualification:-(1) A person shall be disqualified for

10.
being nominated as, and for being a member of the Committee,
Advisory Committee or the Board, as the case may be, —
(i) if he is declared to be of unsound mind by a competent court;
or
(ii) if he is an undischarged insolvent; or
(iii) if before or after the commencement of the Act, he has been
convicted of an offence involving moral turpitude.
426
(2) If any question arises whether a disqualification has been

incurred under sub-rule (1) the decision of the Central Government
thereon shall be final.
11. Meetings: -The Chairman may, subject to the provisions

of rule 12, call a meeting of the Committee, Advisory Committee or the
Board, as the case may be, at any time he thinks fit:
Provided that on a requisition in writing from not less than one
half of the members the Chairman shall call a meeting within fifteen
days from the date of the receipt of such requisition.
12. Notice of meetings:-The Chairman shall fix the date, time

and place of every meeting, and a notice in writing containing the
aforesaid particulars along with a list of business to be conducted at
the meeting shall be sent to each member by registered post at least
fifteen days before the date fixed for such meeting :
Provided that in the case of an emergent meeting, notice of seven
days only may be given to every member.
13. Chairman:-(1) The Chairman shall preside at the

meetings of the Committee, Advisory Committee or the Board, as the
case may be.
427
(2) In the absence of the Chairman at any meeting the members

shall elect from amongst themselves by a majority of votes, a member,
who shall preside at such meeting.
1[14. Quorum: -No business shall be transacted at any meeting

unless at least one-third of the members and at least one
representative each of both the employers and employees are present:
Provided that if at any meeting less than one-third of the

members are present, the Chairman may adjourn the meeting to a
date not later than seven days from the date of the original meeting
and it shall thereupon be lawful to dispose of the business at such
adjourned meeting irrespective of the number of members present:
2[Provided further that the date, time and place of such adjourned
meeting shall be intimated to all the members by telegram or by written
communication].
15. Disposal of business: -All business shall be considered

at a meeting of the Committee, Advisory Committee or the Board, as
the case may be, and shall be decided by a majority of the votes of the
members present and voting. In the event of an equality of votes the
Chairman shall have a casting vote:
Provided that the Chairman may, if he thinks fit, direct that any
matter shall be decided by the circulation of necessary papers and by
securing written opinion of the members:
Provided further that no decision on any matter under the

preceding proviso shall be taken unless supported by not less than a
two-thirds majority of the members.
16. Method of voting: -Voting shall ordinarily be by show of

hands, but if any member asks for voting by ballot, or if the Chairman
so decides, the voting shall be by secret ballot and shall be held in such
428
manner as the Chairman may decide.
17. Proceedings of the meetings:-(1) The proceedings of

each meeting showing inter alia the names of the members present
there shall be forwarded to each member and to the Central
Government as soon after the meeting as possible and in any case, not
less than seven days before the next meeting.
(2) The proceedings of each meeting shall be confirmed with such
modification if any, as may be considered necessary at the next
meeting.
Chapter III
Summoning of witnesses by the committee, advisory committee and

the board and production of documents
18. Summoning of witnesses and production of

documents:-(1) A Committee, Advisory Committee or the Board may
summon any person to appear as a witness in the course of an enquiry.
Such summons may require a witness to appear before it on a date
specified therein and to produce any books, papers or other
documents and things in his possession or under this control relating
to any manner to the enquiry.
(2) A summons under sub-rule (1) may be addressed to an
individual or an organization of employers or a registered trade union
of workers.
1 Substituted by G.S.R. 2201, dated 12-12-1968.
2 Substituted by G.S.R. 751, dated 1-7-1974 (w.e.f. 13-7-1974).
429
(3) A summons under this rule may be served—

(i) in the case of an individual, by being delivered or sent to him
by registered post;
(ii) in the case of an employer’s‟ organization or a registered
trade union of workers, by being delivered or sent by registered
post to the secretary or other principal officer of the
organization or union, as the case may be.
(4) The provisions of the Code of Civil Procedure, 1908 (5 of
1908) relating to the summoning and enforcement of the appearance
of witnesses and the production of documents shall, so far as may be,
apply to proceedings before a Committee, Advisory Committee or the
Board.
1[(5) All books, papers and other documents or things produced
before a Committee, or the Board in pursuance of a summons issued
under sub-rule (1) may be inspected by the Chairman and
independent members, and also by such parties as the Chairman may
allow with the consent of the other party, but the information so
obtained shall be treated as „confidential‟ and the same shall be made
public only with the consent in writing of the party concerned:
Provided that nothing contained in this rule shall apply to the

disclosure of any such information for the purpose of a prosecution
under section 193 of the Indian Penal Code (45 of 1860).]
19. Expenses of witnesses:-Every person who is summoned

and appears as a witness before the Committee, the Advisory
Committee or the Board shall be entitled to an allowance for expenses
incurred by him in accordance with the scale for the time being in
force for payment of such allowance to witnesses appearing in civil
courts in the State.
430
Chapter IV
Computation and payment of wages, hours of work and

holidays
20. Mode of computation of the cash value of wages: -The

retail prices at the nearest market shall be taken into account in
computing the cash value of wages paid in kind and of essential
commodities supplied at concessional rates. This computation shall
be made in accordance with such directions as may be issued by the
Central Government from time to time.
21. Time and conditions of payment of wages and the

deductions permissible from wages:-(1)(i) 2[The wages of a worker
in any scheduled employment] shall be paid on a working day,—
(a) in the case of establishment in which less than one thousand
persons are employed, before the expiry of the seventh day,
and
(b) in the case of other establishments before the expiry of the
tenth day, after the last day of the wage period in respect of
which the wages are payable.
(ii) Where the employment of any person is terminated by or on
behalf of the employer, the wages earned by him shall be paid
1 Inserted by G.S.R. 466, dated 2-3-1970.

431
before the expiry of the second working day after the day on which
his employment is terminated.
(iii) The wages of an employed person shall be paid to him

without deduction of any kind except those authorized by or
under these rules.
Explanation. —Every payment made by the employed person to
the employer or his agent shall, for the purposes of these rules, be
deemed to be a deduction from wages.
(2)Deductions from the wages of a person employed in a

scheduled employment shall be of one or more of the following kinds,
namely: —
(i) fines in respect of such acts and omissions on the part of
employed persons as may be specified by the Central
Government by general or special order in this behalf;
(ii) deductions for absence from duty;
(iii) deductions for damage to or loss of goods expressly entrusted
to the employed person for custody, or for loss of money for
which he is required to account, where such damage or loss is
directly attributable to his neglect or default;
(iv) deductions for house accommodation supplied by the
employer;
(v) deductions for such amenities and services supplied by the
employer as the Central Government may, by general or
special order, authorize.
Explanation. —The words amenities and services‟ in this clause do
not include the supply of tools and protectives required for the
purposes of employment;
(vi) deductions for recovery of advances or for adjustment of over

payments of wages:
432
Provided that such advances do not exceed an amount equal to

wages for two calendar months of the employed person and, in no
case, shall the monthly instalment of deduction exceed one-fourth of
the wages earned in that month;
(vii) deductions of income-tax payable by the employed person;

(viii) deductions required to be made by order of a court or other
competent authority;
(ix) deductions for subscriptions to, and for repayment of
advances from any provident fund to which the Provident
Funds‟ Act, 1952 (19 of 1952), applies or any recognized
provident fund as defined in section 58A of the Indian Income-
tax Act, 1922) (11 of 1922)1, or any provident fund approved in
this behalf by the Central Government during the continuance
of such approval;
2[(x) deductions for payment to co-operative societies 3[or
deductions for recovery of loans advanced by an employer
from out of a fund maintained for the purpose by the employer
and approved in this behalf by the Central Government] or
deductions made with the written authorization of the person
employed, for payment of any
1 Now see the Income-tax Act, 1961 (43 of 1961).

433
premium, on his life insurance policy to the Life Insurance

Corporation of India established under the Life Insurance Act, 1956
(31 of 1956);
1[(xi) deductions for recovery or adjustment of amounts, other than

wages, paid to the employed person in error or in excess of what is due
to him:
2[(xii) deductions made with the written authorization of the

employed persons (which may be given once generally and not
necessarily every time a deduction is made), for the purchase of
securities of the Government of India or of any State Government or for
being deposited in any Post Office Savings Bank in furtherance of any
savings scheme of any such Government;]
3[(xiii) deductions made with the written authorization of the

employed person for contributions to the National Defence Fund or
the Prime Minister’s National Relief Fund or to any Defence Savings
Scheme 4[approved by the Central Government or to such other Fund
as the Central Government] may, by notification in the Official
Gazette, specify in this behalf;]
5[(xiv) deductions for recovery of loans granted for house building or

other purposes approved by the Central Government, and for the
interest due in respect of such loans, subject to any rules made or
approved by the Central Government regulating the extent to which
such loans may be granted and the rate of interest payable thereon.]
Provided that prior approval of the Inspector or any other officer

authorized by the Central Government in this behalf is obtained in
writing before making the deductions, unless the employee gives his
consent in writing to such deductions.]
434
6[(2A) Notwithstanding anything contained in these rules, the

total amount of deductions which may be made under sub-rule (2) in
any wage period, from the wages of an employee shall not exceed—
(i) 75 per cent of such wages in cases where such deductions are
wholly or partly made for payments to Consumer Co-
operative Stores run by any Co-operative Society under clause
(x) of sub- rule (2); and
(ii) 50 per cent of such wages in any other case:
Provided that where the total amount of deductions which have
to be made under sub-rule (2) in any wage period from the wages of
any employee exceeds the limit specified in clause (i), or, as the case
may be, clause (ii) of this sub-rule, the excess shall be carried forward
and recovered from the wages of succeeding wage period or wages
periods as the case may be, in such number of instalments as may be
necessary.]
1 Inserted by S.R.O. 298, dated 23-1-1957.

4 Corrected by G.S.R. 463(E), dated 2-8-1980.
5 I n s e r t e d by G.S.R. 676, dated 7-6-1980 (w.e.f. 21-6-1980).
6 I n s e r t e d by G.S.R. 676, dated 7-6-1980 (w.e.f. 21-6-1980).
435
(3) Any person desiring to impose a fine on an employed

person or to make a deduction for damage or loss caused by him shall
explain to him personally and also in writing the act or omission or the
damage or loss, in respect of which the fine or deduction is proposed to
be imposed or made and give him an opportunity to offer any
explanation in the presence of another person. The amount of the said
fine or deduction shall also be intimated to him.
1[(4) The amount of fine or deduction for damage or loss
mentioned in sub- rule (3) shall be subject to such limits as may be
specified in this behalf by the Central Government. All such fines
imposed and deductions made shall be recorded in the registers
maintained in Forms I and II, respectively. These registers shall be
kept at the workspot and maintained up-to-date. Where no fine or
deduction has been imposed or made on or from any employee in a
wage period, a „nil‟ entry shall be made across the body of the relevant
register at the end of the wage period, indicating also in precise terms
the wage period to which the „nil‟ entry relates.]
2[(4A) Every employer shall send annually a return in Form III

3[***] so as to reach the Inspector not later than the 1st February
following the end of the year to which it relates.
4[(5) The amount of fine imposed under sub-rule (3) shall be

utilized only for such purposes beneficial to the employees as are
approved by the Central Government.]
(6) Nothing in this rule shall be deemed to affect the provisions

of the Payment of Wages Act, 1936.]
22. Publicity to the minimum wage fixed under the Act:-

Notices 5[in Form IX-A] containing the minimum rates of wages fixed
together with 6[extracts of] the Act, the rules made thereunder and
the name and address of the Inspector shall be displayed in English
436
and in a language understood by the majority of the workers in the

employment 7[at the main entrances to the establishment and at its
office] and shall be maintained in a clean and legible condition. Such
notices shall also be displayed on the notice boards of all sub-
divisional and District offices.
8[23. Weekly day of rest:-(1) Subject to the provisions of this rule,

an employee in a scheduled employment in respect of which
minimum rates of wages have been fixed under the Act, shall be
allowed a day of rest every week (hereinafter referred to as the „rest
day‟) which shall ordinarily be Sunday, but the employer may fix any
other day of the week as the rest day for any employee or class of
employees in that scheduled employment:
Provided that the employee has worked in the scheduled

employment under the same employer for a continuous period of not
less than six days:

3 Certain words omitted by G.S.R.1542, dated 8-11-1962.
4 Substituted by G.S.R.
2574, dated 2-8-1954. 5
Inserted by S.R.O. 2727,
dated 11-8-1954.
437
Provided further that the employee shall be informed of the day

fixed as the rest day and of any subsequent change in the rest day
before the change is effected, by display of a notice to that effect in the
place of employment at the place specified by the Inspector in this
behalf.
Explanation. —For the purpose of computation of the continuous

period of not less than six days specified in the first proviso to this
sub-rule—
(a) any day on which an employee is required to attend for work

but is given only an allowance for attendance and is not
provided with work, 1[***]
(b) any day on which an employee is laid off on payment of
compensation under the Industrial Disputes Act, 1947 (14 of
1947), 2[and
(c) any leave or holiday, with or without pay, granted by the
employer to an employee in the period of six days
immediately preceding the rest day], shall be deemed to be
days on which the employee has worked.
(2) Any such employee shall not be required or allowed to
work in a scheduled employment on the rest day unless he has or will
have a substituted rest day for a whole day on one of the five days
immediately before or after the rest day:
Provided that no substitution shall be made which will result in
the employee working for more than ten days consecutively without a
rest day for a whole day.
(3) Where in accordance with the foregoing provisions of this

rule, any employee works on a rest day and has been given a
substituted rest day on any one of the five days before or after the rest
day, the rest day shall, for the purpose of calculating the weekly hours
of work, be included in the week in which the substituted rest day
438
occurs.
(4) An employee shall be granted for the rest day wages
calculated at the rate applicable to the next preceding day and in case
he works on the rest day and has been given a substituted rest day, he
shall be paid wages for the rest day on which he worked, at the
overtime rate and wages for the substituted rest day at the rate
applicable to the next preceding day:
Provided that where the minimum daily rate of wages of the
employee as notified under the Act has been worked out by dividing
the minimum monthly rate of wages by twenty-six, or where the
actual daily rate of wages of the employee has been worked out by
dividing the monthly rate of wages by twenty- six and such actual
daily rates of wages is not less than the notified minimum daily rate
of wages of the employee, no wages for the rest day shall be payable,
and in case the employee works on the rest day and has been given a
substituted rest day, he shall be paid only for the rest day on which
he worked, an amount equal to the wages payable to him at the
overtime rate; and if any dispute arises whether the daily rate of
wages has been worked out as aforesaid, the Chief Labour
Commissioner may, on application made to him in this behalf, decide
the same, after giving an opportunity to the parties concerned to
make written representations:

439
Rule 24A The Minimum Wages (Central) Rules, 1950 29
Provided further that in the case of an employee governed by a

piece rate scheme, the wages for the rest day, or, as the case may be,
the rest day, and the substituted rest day, shall be such as the Central
Government may, by notification in the Gazette of India, prescribe,
having regard to the minimum rate of wages fixed under the Act, in
respect of the scheduled employment.
Explanation.—In this sub-rule „next preceding day‟ means the

last day on which the employee has worked, which precedes the rest
day or the substituted rest day, as the case may be; and where the
substituted rest day falls on a day immediately after the rest day, the
next preceding day means the last day on which the employee has
worked, which precedes the rest day.
1[***]
2[(5)] The provisions of this rule shall not operate to the prejudice
of more favourable terms, if any, to which an employee may be
entitled under any other law or under the terms of any award,
agreement or contract of service, and in such a case, the employee
shall be entitled only to the more favourable terms aforesaid.
Explanation. —For the purposes of this rule, „week‟ shall mean

a period of seven days beginning at midnight on Saturday night.]
24. Number of hours of work which shall constitute a

normal working day:-(1) The number of hours which shall constitute
a normal working day shall be—
(a) in the case of an adult, 9 hours;
(b) in the case of a child, 4 hours.
(2) The working day of an adult worker shall be so arranged
that inclusive of the intervals for rest, if any, it shall not spread over
more than twelve hours on any day.
(3) The number of hours of work in the case of an adolescent
440
shall be the same as that of an adult or a child accordingly as he is

certified to work as an adult or a child by a competent medical
practitioner approved by the Central Government.
(4) The provisions of sub-rules (1) to (3) shall, in the case of
workers in agricultural employment, be subject to such modifications
as may, from time to time, be notified by the Central Government.
3[(4-A) No child shall be employed or permitted to work for
more than 4½ hours on any day.]
(5) Nothing in this rule shall be deemed to affect the

provisions of the Factories Act, 1948 (63 of 1948).
4[24A. Night Shifts: -Where a worker in a scheduled employment

works on a shift which extends beyond midnight—
1 Sub-rule (5) omitted and sub-rule (6) renumbered as sub-

rule (5) by G.S.R. 158, dated 10-1-1979.
2 Sub-rule (5) omitted and sub-rule (6) renumbered as sub-
rule (5) by G.S.R. 158, dated 10-1-1979.
4 Added by S.R.O. 1932, dated 6-10-1954.
441
(a) a holiday for the whole day for the purposes of rule 23 shall
in his case mean a period of twenty-four consecutive hours
beginning from the time when his shift ends; and
(b) the following day in such a case shall be deemed to be the
period of twenty-four hours beginning from the time when
such shift ends, and the hours after midnight during which
such worker was engaged in work shall be counted towards the
previous day.
1[25. Extra wages for overtime:-(1) When a worker work
in an employment for more than nine hours on any day or for more
than forty-eight hours in any week, he shall, in respect of such
overtime work, be entitled to wages at double the “ordinary rate of
wages”.
(a) in the case of employment in agriculture, at one and a half times

the ordinary rate of wages;
(b) in the case of any other scheduled employment, at double the
ordinary rate of wages.
Explanation.—The expression “ordinary rate of wages” means the
basic wage plus such allowances including the cash equivalent of the
advantages accruing through the concessional sale to the person
employed of food grains and other articles as the person employed is
for the time being entitled to but does not include a bonus.]
2[(2) A register of overtime shall be maintained by every employer

in Form IV in which entries under the columns specified therein shall
be made as and when overtime is worked in any establishment. The
register shall be kept at the workspot and maintained UpToDate.
Where no overtime has been worked in any wage period, a „nil‟ entry
shall be made across the body of the register at the end of the wage period
indicating also in precise terms the wage period to which the „nil‟ entry
relates].
442
26. Form of registers and records: -3[(1) A Register of Wages

shall be maintained by every employer at the workspot in Form X.]
4[(1A) Every employer shall, in respect of each person employed
in the establishment, complete the entries pertaining to a wage
period—
(a) in columns 1 to 15 of Form X, before the date on which the

wages for such wage period fall due;
(b) in columns 16 and 17 of the said Form, on the date when
payment is made, and obtain the signature or thumb
impression of the employee in column 18 of the said Form on
the date when payment is made.]
(2) A Wage Slip in Form XI shall be issued by every employer to
every person employed by him at least a day prior to the disbursement
of wages.
(3) Every employer shall get the signature or the thumb
impression of every person employed on the 5[Register of wages] and
wage slip.

2 Substituted by G.S.R. 1060, dated 3-9-1960
443
(4) Entries in the 1[Register of Wages] and wage slips shall be

authenticated by the employer or any person authorized by him in
this behalf.
2[(5) A muster roll shall be maintained by every employer at the
workspot and kept in Form V and the attendance of each person
employed in the establishment shall be recorded daily in that Form
within 3 hours of the commencement of the work shift or relay for the
day, as the case may be.]
3[***]
4[26A. Preservation of registers: - A register required to be

maintained under rules 21(4), 25(2) and 26(1) 5[and the muster roll
required to be maintained under rule 26(5)] shall be preserved for a
period of three years after the date of last entry made therein.]
6[26B. Production of registers and other records:-(1) All

registers and records required to be maintained by an employer
under these rules shall be produced on demand before the Inspector
during the course of inspection of the establishment:
Provided that the Inspector may, if it is necessary, demand the

production of the registers and records in his office or such other public
place as may be nearer to the employer;
(2) Any infringement of the provisions of the Act or these rules

noticed by the Inspector and communicated to the employer during
the course of an inspection or otherwise, shall be rectified by the
employer and compliance report in respect thereof shall be submitted
to the Inspector, on or before the date specified by him in this behalf.]
7[26C. Notwithstanding anything contained in these Rules,

where a combined (alternative) form is sought to be used by the
employer to avoid duplication of work for compliance with the
444
provisions of any other Act or the Rules framed thereunder, an

alternative suitable Form in lieu of any of the Forms prescribed under
these Rules may be used with the previous approval of the 8[Central
Government.]
Chapter V Claims Under The Act
27. 9[Applications:-(1) An application under sub-section (2)

of section 20 or sub-section (1) of section 21, by or on behalf of an
employed person or group of employed persons shall be made in
duplicate in Forms VI, VIA or VII, as the case may be, one copy of
which shall bear the prescribed court fee.
3 Sub-rule (6) omitted by G.S.R. 1213, dated 9-7-1963. Earlier

sub-rule (6) was inserted by G.S.R. 1512, dated 15-12-1961.
4 Inserted by G.S.R. 1060, dated 3-9-1960
6 Substituted by G.S.R. 255, dated 20-2-1967. Earlier rule 26-B
inserted by G.S.R. 1523, dated 16-12-1960.
445
(2) A single application under section 20 read with sub-section (1)

of section 21 may be presented on behalf or in respect of a group of
employed persons, if they are borne on the same establishment and
their claim relates to the same wage period or periods.]
28. Authorization: -The authorization to act on behalf of an

employed person or persons, under sub-section (2) of section 20 or of
sub-section (1) of section 21 shall be given in Form VIII by an
instrument which shall be presented to the authority hearing the
application and shall form part of the record.
29. Appearance of parties:-(1) If an application under sub-

section (2) of section 20 or section 21 is entertained, the Authority
shall serve upon the employer by registered post a notice in Form IX
to appear before him on a specified date with all relevant documents
and witnesses, if any, and shall inform the applicant of the date as
specified.
(2) If the employer or his representative fails to appear on the
specified date, the authority may hear and determine the application
ex parte.
(3) If the applicant or his representative fails to appear on the
specified date, the authority may dismiss the application.
(4) An order passed under sub-rule (2) or sub-rule (3) may be
set aside on sufficient cause being shown by the defaulting party
within one month of the date of the said order, and the application
shall then be reheard after service of notice on the opposite party of
the date fixed for re-hearing, in the manner specified in sub-rule (1).
Chapter VI
Scale of Costs in Proceedings Under The Act
30. Costs:-(1) The authority, for reasons to be recorded in

writing, may direct that the cost of any proceeding pending before it
446
shall not follow the event.

(2) The costs which may be awarded shall include—
(i) expenses incurred on account of court-fees;
(ii) expenses incurred on subsistence money to witnesses; and
(iii) pleader’s fees to the extent of ten rupees provided that the
authority in any proceeding, may reduce the fees to a sum not
less than five rupees or for reasons to be recorded in writing
increase it to a sum not exceeding twenty-five rupees.
(3) Where there is more than one pleader or more than one
applicant or opponent the authority may, subject as aforesaid, award
to the successful party or parties such costs as it may deem proper.
31.Court fees: -The Court fee payable in respect of

proceeding under section 20 shall be—
(i) for every application to summon a witness - One rupee in
respect of each witness;
(ii) for every application made by or on behalf of an individual -
One rupee;
447
Forms The Minimum Wages (Central) Rules, 1950 33
1[(iii) for every application made on behalf or in respect of a number of

employees - One rupee per employee subject to a maximum of twenty
rupees:]
Provided that the authority may, if in its opinion, the applicant is

a pauper, exempt him wholly or partly from the payment of such fees:
Provided further that no fee shall be chargeable, —
(a) from persons employed in agriculture; or

(b) in respect of an application made by an Inspector.
2[Chapter VII Miscellaneous
3[32. Saving: -These rules shall not apply in relation to any

scheduled employment in so far as there are in force rules applicable
to such employment, which, in the opinion of the Central
Government, make equally satisfactory provisions for the matters
dealt with by these rules and such opinion shall be final.]
FORM I [RULE 21(4)]
448
Register of Fines
..............................................EMPLOYER..............................................
Serial Name Father’s/ Sex Department Nature

No. Husband’s and date
name of the
offence
for
which
fine
imposed
1 2 3 4 5 6
Whether Rate of Date and Date on Remarks

workman wages amount of which fine
showed cause fine realized
against fine or imposed
not. If so enter
date
7 8 9 10 11

3 Substituted by S.R.O. 463, dated 12-2-1955.
449
34 The Minimum Wages (Central) Rules, 1950 Forms
FORM II
Register of deductions for damage or loss caused to the

employer, by the neglect or default of the employed persons
[rule 21(4)]
..............................................EMPLOYER..............................................
Serial Name Father’s/ Sex Department Damage

No. Husband’s or
name loss
caused
with
date
1 2 3 4 5 6
Whether worker Date and Number of Date on Remarks

showed cause amount of instalments which total
against deduction if any amount
deduction. If so imposed realized
enter date
7 8 9 10 11
1[FORM III [RULE 21(4A)]
Annual Returns
Returns for the year ending the 31 st ...........................................

December
1. (a) Name of the establishment and postal address
450
..................................................................................................................
...................................................................................................................
(b) Name and residential address of the
owner/contractor
...........................................
(c) Name and residential ...........................................
address of the Managing ...........................................
Agent/ Director/ Partner in
...........................................
charge of the day-to-day affairs
of the establishment owned by
a company, body corporate or
Association
(d) Name and residential address of the
Manager/Agent, if any
...................................................................................................................
...................................................................................................................
2. Number of days worked ...........................................
during the year
451
3. Number of man-days ...........................................

worked during the year
4. Average daily number of persons employed during the year
(i) Adults ...........................................
(ii) Children ...........................................
5. Total wages paid in cash ...........................................
6. Total cash value of the ...........................................
wages paid in kind
7. Deductions: ...........................................
No. of cases Total amount
Rs. np.
(a) Fines
(b) Deductions for damage
loss or
(c) Deductions for breach of
contract
Disbursement from fines:
Purpose Amount
Rs. np.
(a)
(b)
(c)
(d)
8. Balance of fine fund in
hand at the end of the year
Dated ................................ Signature ...............................

Designation
452
1 The average daily number of persons employed during the year as

obtained by dividing the aggregate number of attendances during
the year by the number of working days.
453
FORM IV
Overtime register for workers [RULE 25(2)]
MONTH ENDING......... 20..........
Sl. Name Father’s/ Sex Designation Dates on Extent of Total

No. Husband’s and which overtime overtime
Name Department overtime on each worked or
worked occasion production
in case of
piece
workers
1 2 3 4 5 6 7 8
Normal Normal Over- Normal Overtime Total Date on

hours rate time earnings earnings earnings which
rate overtime
payment
made
9 10 11 12 13 14 15
FORM V [RULE 26(5)] MUSTER ROLL
Name of Establishment........... Place..........................
454
For the 1[Total Remarks

period Attendance.].
ending
Sl. Name Father’s/ Sex Nature 1 2 3 4 5
No. Husband’s of
name work
2[FORM VI]
Form of application by an employee under section 20(2)
In the Court of the Authority appointed under the Minimum Wages

Act, 1948, for …………………......... area.
Application No. ………………..of 20…………..
(1) ...................... ………… Applicant (through a legal practitioner/an

official of a registered Trade Union),
Address................................................
1 Inserted by G.S.R. 139, dated 16-1-1974 (w.e.f. 2-2-1974).
455
Versus
(1) ........................................
(2) ........................................ ………………….

Opponent(s)
(3) ........................................
Address..................................
The applicant abovenamed states as follows:
(1) The applicant was/has been employed

from.......to.......as.…….(Category) in (establishment) of Shri/
Messrs. ............…………………………… engaged in
...................... (Nature of work) which is a scheduled
employment within the meaning of section 2(g) of the
Minimum Wages Act.
(2) The opponent(s) is/are the employer(s) within the meaning of
section 2(e) of the Minimum Wages Act.
(3) *(a) The applicant has been paid wages at less than the
minimum rate of wages fixed for his category of employment
under the Act by Rs... per day for the period from
..................to......................;
*(b) The applicant has not been paid wages at Rs...... per day for the
weekly days of rest from....................to........................;
*(c) The applicant has not been paid wages at the over-time rate for
the period from ..........................to......................
(4) The applicant estimates the value of relief sought by him on

each account as under: —
(a) Rs...............
456
(b) Rs...............
(c) Rs...............
Total Rs...................
(5) The applicant, therefore, prays that a direction may be issued

under section 20(3) of the Act for:
*(a) payment of the difference between the wages payable under the
Minimum Wages Act and the wages actually paid.
*(b)payment of remuneration for the days of rest.
*(c)payment of wages at the overtime rate.
1[(d)compensation amounting to Rs......]
(6) The applicant begs leave to amend or add to or make alterations

in the application, if and when necessary, with the permission
of the Authority.
(7) The applicant does solemnly declare that the facts stated in this
application are true to the best of his knowledge, belief and
information.
Date.........
…………………………………………………
457
*Delete the portions not required.
Signature or thumb impression of the employed person, or legal

practitioner or official of a Registered Trade Union duly authorized.]
1[FORM VIA]
Form of group application under section 21(1)

Act, 1948, for ......................... area.
Application No.................... of 20.................................. Between A.B.C.

and (state the number) ……………………. Others: Applicants
through a legal practitioner/am official of ………………. which is a
registered trade Union), Address.................................. and
x.y.z.………………………………… opposite party Address

……………………………………..
The application states as follows:--
(1) The applicants whose names appear in the attached schedule

were/have been employed from ………………….. to
……………… as ……………. (categories) …………… in
…………………….. (establishment) of Shri/Messrs. ……..
engaged in ………….. (nature of work) which is/are scheduled
employments) within the meaning of section 2(g) of the
Minimum Wages Act.
(2) The opponent(s) is/are the employer(s) within the meaning of
section 2(e) of the Minimum Wages Act.
(3) *(a) the applicants have been paid wages at less than the
minimum rates of wages fixed for their category (categories)
458
of employment(s) under the Act by Rs. ………………. per day

for the period(s) from …………. to …………..
*(b) The applicants have not been paid wages at Rs. …………. per day
for the weekly days of rest from ……….. to ………… ;
*(c) The applicants have not been paid wages at the overtime rate(s)
for the period from …………… to ……………
(4) The applicants estimate the value of relief sought by them on

each account as under:
(a) Rs........……………
(b) Rs........……………
(c)Rs........…………… Total Rs. ………………
459
(5) The applicants, therefore, pray that a direction may be issued

Minimum Wages Act and the wages actually paid;
*(b)payment of remuneration for the days of rest;
*(c)payment of wages at the overtime rate(s);
1[(d)compensation amounting to Rs......]
(6) The applicants beg to leave to amend or add to or make

alterations in the application, if and when necessary, with the
permission of the Authority.
(7) The applicants do solemnly declare that the facts stated in this
application are true to the best of their knowledge, belief and
information.
Date.................. Signature or thumb impression

of the employed persons or legal
practitioner, or official of a
Registered Union duly
authorized.
2[FORM VII]
Form of application by an inspector or person acting with the

permission of the authority under section 20(2)

Act, 1948, for ......................... area.
460
Application No.................... of 20..................................
(1)...............................Applicant
Address..................................
Versus
(1).............................Opponent(s)
Address...................................
The applicant abovenamed states as follows: —
(1) The opponent(s) has/have

*(a) paid wages at less than the minimum rates of wages fixed for
their category (categories) of employment(s) under the Act by
Rs.......... per day for the period(s) from...............to...............
*(b) Not paid wages at Rs........... per day for the weekly days of rest
from ............ to .............
*(c)not paid wages at the overtime rate(s) for the period from ........ to
......... the following employees:
1 Ins. by the Minimum Wages (Central) (Second Amendment)

Rules, 1961.
461
(2) The applicant estimates the value of relief sought for the
employees on each account as under
(a) Rs........……………
(b) Rs........……………
(c) Rs........…………… Total Rs. ………………
(3) The applicant, therefore, prays that a creation may be issued

Minimum Wages Act and the wages actually paid; *(b) payment
of remuneration for the days of rest;
*(c) payment of wages at the overtime rate;
1[(d) compensation amounting to Rs......]
(4) The applicant begs leave to amend or add to or make alterations

in the application if and when necessary with the permission
of the Authority.
(5) The applicant does solemnly declare that the facts stated in this
application are true to the best of his knowledge, belief and
information.
Date..................Signature……………..]
*Delete the portions not required.
FORM VIII
Form of authority in favour of a legal practitioner or any official of a

registered trade union referred to in section 20(2)
462

Act, 1948 for................................................Area Application
No..........................................of 20..........…
(1)...................
(2).........................Applicant(s)
(3)
Versus
(1)
(2).............................Opponent(s)
(3)
I hereby authorize Mr.................................. a legal practitioner/an

official of the registered trade union of ............................................. to
appear and act on my behalf in the above described proceeding and
to do all things incidental to such appearing and acting.
463
Date...........
……………………………….……….. Signature or thumb

impression of the employee.
FORM IX
Form of summons to the opponent to appear before the

authority when an application under sub-section (2) of section 20
or under section 21 is entertained
(Title of the application)
To
......................................................................................................
.......
(Name, description and place of residence.)
Whereas .............................................has made the abovesaid

application to me under the Minimum Wages Act, 1948, you are hereby
summoned to appear before me in person or by a duly authorized
agent and able to answer all material questions relating to the
application, or who shall be accompanied by some person able to
answer all such questions, on the...........………………………..day of
20..................at..................O’clock in the.............................noon, to
answer the claim; and as the day fixed for the appearance is appointed
for the final disposal of the application you must be prepared to
produce on that day all the witnesses upon whose evidence and all the
documents upon which you intend to rely in support of your defense.
Take notice that in default of your appearance on the day before

mentioned, the application will be heard and determined in your
absence.
464
Date...........
………………
Signature
*When the application is by a group of employees, the thump-

impressions or signatures of two of the applicants need be put to the
application and a full list of applicants should be attached to the
application.
1[FORM IX-A (RULE 22) Notice
2[abstracts of] the minimum wages act, 1948 and the rules made there
under
I. Whom the Act affects

(a) The Act applies to persons engaged in scheduled
1.
employments or in specified class of work in respect of which
minimum wages have been fixed.
(b) No employee can give up by contract or agreement his rights in
so far as it purports to reduce the minimum rates of wages fixed under
the Act.
II. Definition of wages.

(1) “Wages” means all remuneration payable to an employed
person on the fulfillment of his contract of employment 3[and
includes house rent allowance]. It excludes-
Inserted by S.R.O. 2727, dated 11-8-1954.
1 Substituted by G.S.R. 109, Dated 14-1-1959. 3 Added by G.S.R.

109, Dated 14-1-1959.
465
(i) the value of any house-accommodation, supply of light,

water, medical attendance or any other amenity or any service
extended by general or special order of the appropriate
Government;
(ii) contribution paid by the employer to any Pension Fund or
Provident Fund or under any scheme of Social Insurance;
(iii) the traveling allowance or the value of any traveling
concession;
(iv) the sum paid to the person employed to defray special
expenses entailed by him by nature of his employment;
(v) gratuity payable on discharge.
(2) The minimum rate of wages may consist of—
(i) a basic rate of a wages may consist of—
(ii) a basic rate of wages with or without a cost of living allowance
and the cash value of any concessions, like supplies of
essential commodities at concession rates; and
(iii) an all-inclusive rate comprising basic rate, cost of living
allowance and cash value of concessions, if any.
(3) The minimum wages payable to employees of scheduled
employments, notified under section 5, read with section 3 or
as revised from time to time under section 10, read with section
3, may be-
(a) a minimum time rate;
(b) a minimum piece rate;
(c) a guaranteed time rate;
(d) an overtime rate;
differing with (1) different scheduled employments, (2) different
classes of work, (3) different localities, (4) different wage-periods, and
(5) different age groups.
III. Computation and conditions of payment
466
1. The employer shall pay to every employee engaged in

scheduled employment under him wages at a rate not less
than the minimum rate of wages fixed for that class of
employee.
2. The minimum wages payable under this Act shall be paid in
cash unless the Government authorizes payment thereof either
wholly or partly in kind.
3. Wage-period shall be fixed for the payment of wages at
intervals not exceeding one month 1[or such other larger period
as may be prescribed].
4. Wages shall be paid on a working day within seven days of
the end of the wage-period or within ten days if 1,000 or more
persons are employed.
1 Added by G.S.R. 109, dated 14-1-1959.
467
5. The wages of a person discharged shall be paid not later than the
second working day after his discharge.
6. If an employee is employed on any day for a period less than
the normal working day, they shall be entitled to receive wages
for a full normal working day provided his failure to work is
not caused by his unwillingness to work but by the
commission of the employer to provide him with work for that
period.
7. Where an employee does two or more classes of work to each
of which a different minimum rate of wages is applicable, the
employer shall pay to such employee in respect of the time
respectively occupied in each such class of work, wages at not
less than the minimum rate in force in respect of each such
class.
8. Where an employee is employed on piece-work for which
minimum time rate and not a minimum piece-rate has been
fixed, the employer shall pay to such employee wages at not
less than the minimum time rate.
IV. Hours of work and holidays

1. The number of hours which shall constitute to a normal
working day shall be-
(a) in the case of an adult, 9 hours,
(b) in the case of a child, 4 ½ hours.
2. The working day of an adult worker inclusive of the intervals
of rest shall not exceed twelve hours on any day.
3. 1[The employer shall allow a day of rest with wages to the
employees every week. ordinarily, Sunday will be the weekly
day of rest, but any other day of the week may be fixed as such
rest, day. No employee shall be required to work on a day fixed
as rest day, unless he is paid wages for that day at the overtime
rate and is also allowed a substituted rest day with wages (see
468
rule 23).]
When a worker works in an employment for more than nine
hours on any day or for more than forty-eight hours in any week, he
shall in respect to overtime worke4d be entitled to wages in
scheduled employment other than agriculture, at double the ordinary
rate of wages.
V. Fines and deductions

No. deductions shall be made from wages except those
authorized by or under the rules.
Deductions from the wages shall be one or more of the following

kinds, namely: -
(i) Fines: An employed person shall be explained personally and

also in writing the act or omission in respect of which the fine
is proposed to be imposed and given an opportunity to offer
any explanation in the presence of another person. The
amount of the said fine shall also be intimated to him. [It shall
be subject to
469
such limits as may be specified in this behalf by the Central

Government]. It shall be utilized in accordance with the directions of
the Central Government;
(ii) deductions for absence from duty;

(iii) deductions for damages to or loss of goods entrusted to the
employee for custody, or for loss of money for which he is
required to account, where such damage or loss is directly
attributable to his neglect or default. The employed person
shall be explained personally, and also in writing the damage
or loss, in respect of which the deduction is proposed to be
made and given an opportunity to offer any explanation in the
presence of another person. The amount of the said deduction
shall also be intimated to him. 1[It shall be subject to such
limits as may be specified in this behalf by the Central
Government];
(iv) deductions for house accommodations supplied by the
employer 2[or by a State Government or any authority
constituted by a State for providing house accommodation];
(v) deductions for such amenities and services supplied by the
employer as the Central Government may by general or
special order authorize. These will not include the supply of
tools and protectives required for the purposes of
employment.
(vi) deductions for recovery of advances or for adjustment of over-
payment of wages; such advances shall not exceed an amount
equal to wages for two calendar months of the employed
person and the monthly instalment of deduction shall not
exceed one- fourth of the wages earned in that month;
(vii) deductions of income-tax payable by the employed person;
(viii) deductions required to be made by order of a Court or other
competent authority;
470
(ix) deductions for subscription to and for repayment of advances

from any provident fund;
3[(x) deductions for payment to co-operative societies 4[or
deductions for recovery of loans advanced by an employer from out of
a fund maintained for the purpose by the employer and approved in
this behalf by the Central Government] or deductions made with the
written authorization of the person employed, for payment of any
premium on his life insurance policy to the Life Insurance
Corporation of India established under the Life Insurance Act, 1956
(31 of 1956);]
(xi) deductions for recovery or adjustment of amount other than

wages, paid to the employed person in error or in excess of what is due
to him;

471
Provided that prior approval of the Inspector or any other officer

authorized by the Central Government in this behalf obtained in
writing before making the deductions, unless the employee gives his
consent in writing to such deduction;
1[(xii) [deductions made with the written authorization of the

employed person which may be given once generally and not
necessarily every time a deduction is made) for the purchase of
securities of the Government of India or of any State Government or for
being deposited in any post office savings bank in furtherance of any
savings scheme of any such Government.
Every employer shall send annually return in Form III showing

the deductions from swages so as to reach the Inspector not later than
the 1st of February following the end of the year to which it relates.]
VI. Maintenance of registers and records

Every employer 2[shall maintain at the work-spot a register of
wages in the form prescribed] specifying the following particulars for
each period in respect of each employed person:
(a) the minimum rates of wages payable;

(b) the number of days in which overtime was worked;
(c) the gross wages;
(d) all deductions made from wages;
(e) the wages actually paid and the date of payment.
Every employer shall issue wage-slips 3[in the form prescribed]
containing prescribed particulars to every person employed.]
Every employer shall get the signature or the thumb-impression

of every person employed on the wage-book and wage-slips.
472
Entries in the wage-book and wage-slips shall be properly

authenticated by the employer or his agent.
4[A muster-roll, register of fines, register of deductions for

damage or loss and register of overtime shall be maintained by every
employer at the work-spot in the form prescribed.]
5[Every employer shall keep exhibited at main entrance to the

establishment and its office notice in English and the language
understood by a majority of the workers of the following particulars
in clean and legible form;
(a) minimum rate of wages;

(b) 6[abstracts of] the Acts and the rules made
thereunder;
(c) name and address of the Inspector.
7[Register of wages, muster-roll, register of fines, register of
deductions for damage or loss and register of overtime shall be
preserved for a period of three years after the date of last entry made
therein.

473
All registers and records required to be maintained by an

employer under the rules shall be produced on demand before the
Inspector provided that where an establishment has been closed, the
Inspector may demand the production of the registers and records in
his office or such other public place as may be nearer to employers.]
VII. Inspectors
An Inspector can enter in any premises and can exercise the
powers of inspection (including examination of documents and
taking of evidence) as he may deem necessary for carrying out the
purposes of the Act.
VIII. Claims of complaints

1. Where an employee is paid less than the minimum rates of
wages fixed for his class of work or less than the amount due
to him under the provisions of this Act, he can make an
application in the prescribed form within six months to the
authority appointed for the purpose. An application delayed
beyond the period may be admitted if the authority is satisfied
that the applicant had sufficient cause for not making the
application within such period.
2. Any legal practitioner, official of a registered trade union,
Inspector under the Act or other person acting with the
permission of the authority can make the complaint on behalf
of an employed person.
3. 1[A single application may be presented on behalf or in respect
of a group of employed persons whose wages has been
delayed, if they are borne on the same establishment and their
claim relates to the same wage-period or periods.]
4. 2[A complaint under section 22(a) relating to payment of less
than the minimum rates of wages or less than the amount due
to an employee under the provisions of the Act can be made to
474
the Court only after an application in respect of the facts

constituting the offence has been presented under section 20
and has been granted wholly or in part, and the appropriate
Government or an officer authorized by it in this behalf has
sanctioned the making of the complaint.]
5. A complaint under section 22(b) or section 22(a) regarding
contravention of the provisions relating to hours of work and
weekly day of rest or other miscellaneous offences relating to
maintenance of registers submission, of returns, submission
of returns, etc., can be made to the Court by or with the sanction
of an Inspector. The time-limits for making such complaints is
one month from the date of grant of sanction by the Inspector,
in the case of offences falling under section 22(b) and six
months from the date on which the offence is alleged to have
been committed, in the case of offences falling under section
22(a).
IX. Action by the authority

475
1. The authority may direct the payment of the amount by which

the minimum wages payable exceeds the amount actually
paid together with the payment of compensation not
exceeding ten times the amount of such excess. The Authority
may direct payment of compensation in cases where the
excess is paid before the disposal of the application.
2. If malicious or vexatious complaint is made, the authority
may impose a penalty not exceeding Rs. 50 on the applicant
and order that it be paid to the employer.
3. Every direction of the authority shall be final.
1[X. Penalties for offences under the Act.
1. Any employer who pays to any employee less than the

amount due to him under the provisions of this Act or infringes
any order or rules in respect of normal working day, weekly
holidays shall be punishable with imprisonment of either
description for a term which may extend to six months or with
fine which may extend to five hundred rupees or with both.
2. 2[Any employer who contravenes any provision of the Act or
of any rule or order made thereunder shall, if no other penalty
is provided of such contravention by the Act, be punishable
with fine which may extend to five hundred rupees. If the
person committing any offence under the Act is a company,
every person who at the time the offence was committed, was in
charge of, and was responsible to, the company in the conduct
of the business of the company as well as the company shall
be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly. No such person
will be liable to punishment, if he proves that the offence was
committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.
476
3. Any director, manager, secretary or other officer of the

company with whose consent or connivance an offence has
been committed is liable to be proceeded against and punished
under the Act.
Notes- (a) “Company” means anybody corporate and includes a
firm or other association of individuals.
(b “Director” in relation to a firm means a partner in the firm.]
XI. Minimum rates of wages fixed

Name of undertaking……..
Serial No. Category of Minimum wages

employees

477
XII. Name and address of the Inspector(s)
Name Address
1[FORM X [RULE 26(1)]
Register of wages
Name of Establishment.................
Wages period
from...............................................to.....................................Place................
...............
Minimum rates of Rates of wages Deductions of wages

wages payable actually Paid
Basic D.A Basic D.A
Sr. No.
Name of the employee Father’s/Husband’s name Designation
Total attendance units of work done Overtime worked
Gross wages payable Employee’s contribution to P.F. H.R.
Other deductions Total deductions Wages paid
Date of payment
Signature or Thumb-Impression of employee
1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18
478
2[FORM XI [RULE 26(2)] Wage Slip
Name of the establishment

.................
Place..................................

479
1. Name of the employee with father’s/husband’s

name
2. Designation
3. Wages Period.
4. Rate of wages payable:
(a) Basic
(b) D.A.
5. Total attendance units of work done
6. Overtime wages.
7. Gross wages payable
8. Total deductions
9. Net wages paid.
………………………….. Pay in-charge
…………………………………………………
Employee’s signature/thumb impression].
-------------------------
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 riot making payment of wages to their workers
at regular intervals and wages were not uniform. The industrial
workers were forced to raise their heads against their exploitation.
In 1926, Government of India wrote to local governments to ascertain

the position with regard to the delays which occurred in the payment
of wages to the persons employed in Industry. Material so collected
was placed before the Royal Commission on Labour which was
appointed in 1929. On the report of the Commission, Government of
480
India re-examined the subject and in February, 1933 the Payment of

Wages Bill, 1933, was introduced in the Legislative Assembly and
circulated for the purpose of-eliciting opinions. A motion for the
reference of the Bill to a Select Committee was tabled but the motion
could not be passed and the Bill lapsed. In 1935 the Payment of Wages
Bill, based upon the same principles as the earlier Bill of 1933 but
thoroughly revised was introduced in the Legislative Assembly on
15th February, 1935. The Bill was referred to the Select Committee.
The Select Committee presented its report on 2nd September, 1935.
Incorporating the recommendations of the Select Committee, the
Payment of Wages Bill, 1935 was again introduced in the Legislative
Assembly.
STATEMENT OF OBJECTS AND REASONS
In 1926 the Government of India addressed local governments with a

view to ascertain the position with regard to the delays which
occurred in the payment of wages to persons employed in industry,
and the practice of imposing fines on them. The investigations
revealed the existence of abuses in both directions and the material
collected was placed before the Royal Commission on Labour which
was appointed in 1929. The Commission collected further evidence
on the subject and the results of their examination with their
recommendations will be found on pages 216-221 and 236-241 of their
Report. The Government of India re-examined the subject in the light
of the Commission’s Report and in February, 1933 a B il l embodying
the conclusions then reached was introduced and circulated for the
purpose of eliciting opinion. A motion for the reference of the Bill to
a Select Committee was tabled during the Delhi session of 1933-34,
but was not reached, and the Bill lapsed. The present Bill is based
upon the same principles as the original but has been revised
481
throughout in the light of the criticisms received when die original

Bill was circulated.
ACT 4 OF 1936
The Payment of Wages Bill, 1935 having been passed by the
Legislative Assembly received its assent on 23rd April, 1936. It came
on the Statute Book as THE PAYMENT OF WAGES ACT, 1936 (4 of
1936).
LIST OF AMENDING ACTS, ORDINANCE AND ADAPTATION ORDERS
1. The Government of India (Adaptation of Indian Laws)
Order, 1937.
2. The Repealing and Amending Act, 1937 (20 of 1937).
3. The Payment of Wages (Amendment) Act, 1937 (22 of 1937).
4. The Payment of Wages (Amendment) Ordinance, 1940 (3 of
1940).
5. The Indian Independence (Adaptation of Central Acts
and Ordinances) Order, 1948.
6. The Adaptation of Laws Order, 1950.
7. The Part B States (Laws) Act, 1951 (3 of 1951).
10. The Central Labour Laws (Extension to Jammu and
Kashmir) Act, 1970 (51 of 1970).
11. The Repealing and Amending Act, 1974 (56 of 1974).
STATEMENT OF OBJECTS AND REASONS
482
Relating to the Amendment of 2005
The Payment of Wages Act, 1936 was enacted with a view to ensuring
that wages payable to employed persons covered by the Act were
disbursed by the employers within the prescribed time limit and that
no deductions other than those authorized by law were made by
them. The last amendment was made in 1982 and several provisions
of the Act have become obsolete over the years. Many proposals have
been received by the Government for amending various provisions
which are creating practical difficulties in enforcement of this Act. In
order to bring this law in uniformity with other labour laws as also to
make it more effective and practicable, it is proposed to make, inter
alia, the following changes: —
(i) Enhancing the wage ceiling of Rs. 1600 per month to Rs. 6500
per month: The then existing ceiling of Rs. 1000 per month was
last revised to Rs, 1600 per month in 1982. Since then a large
number of employed persons have gone out of the purview of the
Act due to successive rise in wages levels resulting from rise in
the cost of living. Thus, with a view to covering more employed
persons, it is proposed to enhance the wage ceiling from Rs. 1600
per month to Rs. 6500 per month.
(ii) To substitute the expressions “the Central Government” or “a
State Government” by the expression “appropriate
Government”: In Parliamentary enactments relating to labour,
other than the Payment of Wages Act, 1936, the enforcing
authorities are either the Central Government or the State
Governments depending upon the nature of industry. However,
for implementing the Payment of Wages Act, 1936, matters are
referred to the State Governments and quite often action required
to be taken by them is delayed. In order that this law is in
conformity with the other labour laws, it is proposed to introduce
the concept of “appropriate Government”.
(iii) Removing the ambiguities/weakness from the extant
provisions of the Act and prescribing more effective grievance
483
redressal: Over the years, it has been noticed that certain

provisions of the Act have been differently interpreted thus
leading for administrative difficulties in implementing the same.
In order to remove ambiguities, appropriate changes are being
proposed in sections 3, 7, 8 and 15 of the Act which respectively
deal with responsibility for payment of wages, deductions from
wages fines and claims in certain cases.
(iv) Strengthening compensation and penal provisions of the Act:

The penal provisions of the Act have become almost insignificant
due to passage of time as well as decrease in money value since
these provisions were last amended in 1982. It is, therefore,
proposed to make the penal provisions more stringent by
enhancing the quantum of penalties by amending section 20 of
the Act.
2. The Bill seeks to achieve the above objects.
484
THE PAYMENT OF WAGES ACT, 19361

(4 of 1936)
[23rd April, 1936]
An Act to regulate the payment of wages of certain classes of

2[employed persons], whereas it is expedient to regulate the payment
of wages to certain classes of
2[employed persons].
It is hereby enacted as follows: —
1. Short title, extent, commencement and application. —

(1) This Act may be called the Payment of Wages Act, 1936.
3[(2) It extends to the whole of India 4[***]].
(3) It shall come into force on such date5 as the Central Government
may, by notification in the Official Gazette, appoint.
(4) It applies in the first instance to the payment of wages to persons
employed in any 6[factory, to persons] employed (otherwise than
in a factory) upon any railway by a railway administration or,
either directly or through a sub-contractor, by a person fulfilling
a contract with a railway administration 7 [and to persons
employed in an industrial or other establishment specified in sub-
clauses (a) to (g) of clause (ii) of section 2].
(5) 8[The Appropriate Government] may, after giving three months’
notice of its intention of so doing, by notification in the Official
Gazette, extend the provisions of 9[this Act] or any of them to the
payment of wages to any
485
1 For Statement of Objects and Reasons see Gazette of India, 1935,

Pt. V, p. 20; for Report of Select Committee see Gazette of India,
Pt. V, p. 77.
2 Subs. by Act 38 of 1982, sec. 2 for “persons employed in industry”
(w.e.f. 15-10-1982).
3 Subs. by me Adaptation of Laws Order, 1950, for sub-section (2).
4 The words “except the State of Jammu and Kashmir” Subs. by Act
3 of 1951, sec. 3 and Sch. for the words “except Part B States”
which were subsequently omitted by Act 51 of 1970, sec. 2 and
Sch. (w.e.f. 1-9-1971).
5 Came into force on 28-3-1937, see Gazette of India, 1937, Pt. I, p.
626.
6 Subs. by Act 38 of 1982, sec. 3, for “factory and to persons”
(w.e.f. 15-10-1982),
8 Subs. by Act 41 of 2005, sec. 3 for “The State Government”
(w.e.f. 9-11-2005).
9 Subs. by Act 68 of 1957, sec. 2, for “the Act” (w.e.f. 1-4-1958).
class of persons employed in 1 [any establishment or class of

establishments specified by 2 [the appropriate Government] under
sub- clause (h) of clause (ii) of section 2]:
3[Provided that in relation to any such establishment owned by the

Central Government, no such notification shall be issued except with
the concurrence of that Government.]
4[(6) This Act applies to wages payable to an employed person in

respect of a wage period if such wages for that wage period do not
exceed six thousand five hundred rupees per month or such other
higher sum which, on the basis of figures of the Consumer
Expenditure Survey published by the National Sample Survey
486
Organization, the Central Government may, after every five years, by

notification in the Official Gazette, specify.]
Comments
The Central Government [vide S.O. 1380(E), dated 8 th August, 2007]

specifies, on the basis of figures of the C0nsumer Expenditure Survey
published by the National Sample Survey Organization, the wages
referred to in sub-section (6) as ten thousand rupees per month.
2. Definitions. —In this Act, unless there is anything repugnant in

the subject or context. —
5 [(i) “appropriate Government” means, in relation to railways, air

transport services, mines and oilfields, the Central Government and,
in relation to all other cases, the State Government;]
1[2[(ia) “employed person” includes the legal representative of a

deceased employed person; (ib) “employer” includes the legal
representative of a deceased employer;
1. Subs. by Act 38 of 1982, sec. 3, for “any industrial establishment or

in any class or group of industrial establishments” (w.e.f. 15-10-1982).
2. Subs. by Act 41 of 2005, sec. 3, for “the Central Government or

a State Government” (w.e.f. 9- 11-2005).
3. Subs. by Act 38 of 1982, sec. 3, for proviso (w.e.f. 15-10-1982).
487
4. Subs. by Act 41 of 2005, sec. 2, for sub-section “(6) Nothing in this

Act shall apply to wages payable in respect of a wage-period which
over such wage-period, average one thousand sis hundred rupees a
month or more” (w.e.f. 9-11-2005).
5. Ins. by Act 41 of 2005, sec. 4(a) (w.e.f. 9-11-2005).
(ic) “factory” means a factory as defined in clause (m) of section 2 of

the Factories Act, 1948 (63 of 1948) and includes any place to which
the provisions of that Act have been applied under sub-section (1)
of section 85 thereof;]
(ii) 3[“Industrial or other establishment” means] any—
4 [(a) tramway service, or motor transport service engaged in carrying

passengers or goods or both by road for hire or reward;
(aa) air transport service other than such service belonging to, or
exclusively employed in the military, naval or air forces of the Union
or the Civil Aviation Department of the Government of India;]
(b) dock, wharf or jetty;
5[(c)inland vessel, mechanically propelled;] (d)mine, quarry or oil-

field;
(e)plantation;
(f) workshop or other establishment in which articles are produced,

adapted or manufactured, with a view to their use, transport or sale;
6 (g) establishment in which any work relating to the construction,

development or maintenance of buildings, roads, bridges or canals,
or relating to operations connected with navigation, irrigation or the
supply of water or relating to the generation, transmission and
488
distribution of electricity or any other form of power is being carried

on;]
7 [(h) any other establishment or class of establishments which 8 [the

appropriate Government] may, having regard to the nature thereof,
the need for protection of persons employed therein and other
relevant circumstances, specify, by notification in the Official
Gazette;]
1 Clauses (i), (ia| and (ib) Subs. by Act 53 of 1964, sec. 3 for
clause (i) (w.e.f. 1-2-1965).
2 Clauses (i), (iii) and (ib) renumbered as clauses (ia), (ib)
and (ic) by Act 41 of 2005, sec. 4(a) (w.e.f. 9-11-2005).
3 Subs. by Act 38 of 1982, sec. 3, for “industrial establishment”
means’ (w.e.f. 15-10-1982).
4 Subs by Act 53 of 1964, sec. 3, for sub-clause (a) (w.e.f. 1-2-
1965).
5 Subs. by Act 68 of 1957, sec. 3, for
sub-clause (c) (w.e.f. 1-4-1958). 6 Ins.
by Act 68 of 1957, sec. 3 (w.e.f. 1-4-
1958).
8 Subs. by Act 41 of 2005, sec. 3, for “the Central

Government or a State Government” (w.e.f. 9- 11-2005).
1[(iia) “mine” has the meaning assigned to it in clause (j) of sub-

section (1) of section 2 of the Mines Act, 1952 (35 of 1952);]
2[(iii) “plantation” has the meaning assigned to it in clause (f) of

section 2 of the Plantations Labour Act, 1951 (69 of 1951);]
(iv) “prescribed” means prescribed by rules made under this Act;
489
3[(v) “railway administration” has the meaning assigned to it in

clause (32) of section 2 of the Railways Act, 1989 (24 of 1989);]
4[(vi) “wages” means all remuneration (whether by way of salary,

allowances, or otherwise) expressed in terms of money or capable of
being so expressed which would, if the terms of employment, express
or implied, were fulfilled, be payable to a person employed in respect
of his employment or of work done in such employment, and
includes—
(a) any remuneration payable under any award or settlement

between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in
respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of
employment (whether called a bonus or by any other name);
(d) any sum which by reason of the termination of employment of the
person employed is payable under any law, contract or
instrument which provides for the payment of such sum, whether
with or without deductions, but does not provide for the time
within which the payment is to be made;
(e) any sum to which the person employed is entitled under any
scheme framed under any law for the time being in force, but does
not include—
(1) any bonus (whether under a scheme of profit sharing or
otherwise) which does not form part of the remuneration payable
under the terms of employment or which is not payable under
any award or settlement between the parties or order of a Court;
2 Subs. by Act 53 of 1964, sec. 3, for clause (iii) (w.e.f. 1-2-1965).

3 Subs. by Act 41 of 2005, sec. 4(b), for clause “(v) “railway
administration” has the meaning assigned to it in clause
490
(6) of section 3 of the Indian Railways Act, 1890 (9 of

1890), and” (w.e.f. 9-11-2005).
4 Subs. by Act 68 of 1957, sec. 3, for clause (vi) (w.e.f. 1-4-1958).
(2) the value of any house-accommodation, or of the supply of light,
water, medical attendance or other amenity or of any service
excluded from the computation of wages by a general or special
order of 1[the appropriate Government];
(3) any contribution paid by the employer to any pension or
provident fund, and the interest which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses
entailed on him by the nature of his employment; or
(6) any gratuity payable on the termination of employment in cases
other than those specified in sub-clause (d).]
2[3. Responsibility for payment of wages. —
(1) Every employer shall be responsible for the payment of all wages
required to be paid under this Act to persons employed by him
and in case of persons employed, —
(a) in factories, if a person has been named as the manager of the
factory under clause (f) of sub-section (1) of section 7 of the
Factories Act, 1948 (63 of 1948);
(b) in industrial or other establishments, if there is a person
responsible to the employer for the supervision and control of the
industrial or other establishment;
1 Subs. by Act 41 of 2005, sec- 3, for “the State Government” (w.e.f.

9-11-2005).
2 Subs. by Act 41 of 2005, sec. 5, for section “3. Responsibility for
payment of wages. — Every employer shall be responsible for the
payment to persons employed by him of all wages required to be
paid under this Act:
491
Provided that, in the case of persons employed (otherwise than by a

contractor)—
(a) in factories, if a person has been named as the manager of the factory
under clause (f) of sub- section (1) of section 7 of the Factories Act,
1948 (63 of 1948);
(b) in industrial or other establishments, if there is a person responsible
to the employer for the supervision and control of the industrial or
other establishments;]
(c) upon railways (otherwise than in factories), if the employer is the
railway administration and the railway administration has
nominated a person in this behalf for the local area concerned, the
person so named, the person so responsible to me employer, or the
person so nominated, as the case may be shall also be responsible for
such payment” (w.e.f. 9-11-2005).
(c) upon railways (other than in factories), if the employer is the
railway administration and the railway administration has
nominated a person in this behalf for the local area concerned;
(d) in the case of contractor, a person designated by such contractor
who is directly under his charge; and
(e) in any other case, a person designated by the employer as a person
responsible for complying with the provisions of the Act; the
person so named, the person responsible to the employer, the
person so nominated or the person so designated, as the case may
be, shall be responsible for such payment.
(2) Notwithstanding anything contained in sub-section (1), it shall be
the- responsibility of the employer to, make payment of all wages
required to be made under this Act in case the contractor or the
person designated by the employer fails to make such payment.]
4. Fixation of wage-periods. —
(1) Every person responsible for the payment of wages under section
3 shall fix periods (in this Act referred to as wage-period) in
492
respect of which such wages shall be payable.

(2) No wage-period shall exceed one month.
5. Time of payment of wages. —
(1) The wages of every person employed upon or in—
(a) any railway, factory or 1[industrial or other establishment] upon
or in which less than one thousand persons are employed, shall
be paid before the expiry of the seventh day,
(b) any other railway, factory or ‘[industrial or other establishment],
shall be paid before the expiry of the tenth day, after the last day
of the wage-period in respect of which the wages are payable:
2[Provided that in the case of persons employed on a dock, wharf or

jetty or in a mine, the balance of wages found due on completion of
the final tonnage account of the ship or wagons loaded or unloaded,
as the case may be, shall

(w.e.f. 15-10-1982). 2 Ins. by Act 68 of 1957, sec. 5 (w.e.f. 1-4-1958).
be paid before the expiry of the seventh day from the day of such
completion.]
(2) Where the employment of any person is terminated by or

on behalf of the employer, the wages, earned by him shall be paid
before the expiry of the second working day from the day on which
his employment is terminated: 1[Provided that where the
employment of any person in an establishment is terminated due to
the closure of the establishment for any reason other than a weekly
or other recognized holiday, the wages earned by him shall be paid
before the expiry of the second day from the day on which his
employment is so terminated.]
(3) The 2 [ 3 [appropriate Government] may, by general or special
order, exempt, to such extent and subject to such conditions as
493
may be specified in the order, the person responsible for the

payment of wages to persons employed upon any railway
(otherwise than in a factory) 4[or to persons employed as daily-
rated workers in the Public Works Department of the Central
Government or the State Government] from the operation of this
section in respect of the wages of any such persons or class of such
persons:
5[Provided that in the case of persons employed as daily-rated

workers as aforesaid, no such order shall be made except in
consultation with the Central Government.]
(4) 6[Save as otherwise provided in sub-section (2), all payments]

of wages shall be made on a working day.
6. Wages to be paid in current coin or currency notes. —All wages

shall be paid in current coin or currency notes or in both:
7[Provided that the employer may, after obtaining the written

authorization of the employed person, pay him the wages either by
cheque or by crediting the wages in his bank account.]
1 Added by Act 53 of 1964, sec. 5 (w.e.f. 1-2-1965).
2 Subs. by the A.O. 1937, for “Governor-General in Council”.

3 Subs. by Act 41 of 2005, sec. 3, for “the State Government”
(w.e.f. 9-11-2005).
4 Subs. by Act 38 of 1982, sec. 6, for “industrial
establishment” (w.e.f. 15-10-1982). 5 Ins. by
Act 53 of 1964, sec. 5 (w.e.f. 1-2-1965).
6 Subs. by Act 53 of 1964, sec. 5, for
“All payments” (w.e.f. 1-2-1965). 7
494
Ins. by Act 29 of 1976, sec. 3

(w.r.e.f. 12-11-1975).
7. Deductions which may be made from wages. —

(1) Notwithstanding the provisions of 1[the Railways Act, 1989 (24 of
1989)] the wages of an employed person shall be paid to him
without deductions of any kind except those authorized by or
under this Act.
2 [Explanation I]. —Every payment made by the employed person to

the employer or his agent shall, for the purposes of this Act, be
deemed to be a deduction from wages.
Explanation II. —Any loss of wages resulting from the imposition, for
good and sufficient cause, upon a person employed of any of the
following penalties, namely: —
(i) the withholding of increment or promotion (including the

stoppage of increment at an efficiency bar);
(ii) the reduction to a lower post or time scale or to a lower stage in a
time scale; or
(iii) suspension; shall not be deemed to be a deduction from wages in
any case where the rules framed by the employer for the
imposition of any such penalty are in conformity with the
requirements, if any, which may be specified in this behalf by the
State Government by notification in the Official Gazette.]
(2) 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: —
(a) fines;
(b) deductions for absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to
the employed person for custody, or for loss of money for which
he is required to account, where such damage or loss is directly
attributable to his neglect or default;
495
3[(d) deductions for house-accommodation supplied by the employer

or by Government or any housing board set up under any law for the
time being in force (whether the Government or the board is the
1 Subs. by Act 41 of 2005, sec. 6(a) for “sub-section (2) of

section 47 of the Indian Railways Act, 1890 (9 of 1890)”
(w.e.f. 9-11-2005).
2 Explanation re-numbered as Explanation I by
Act 68 of 1957, sec. 5 (w.e.f. 1-4-1958). 3 Subs. by
Act 68 of 1957, sec. 5, for clause (d) (w.e.f. 1.4.1958).
employer or not) or any other authority engaged in the business of

subsidizing house-accommodation which may be specified in this
behalf by the State Government by notification in the Official
Gazette;]
(e) deductions for such amenities and services supplied by the

employer as the 1[***] State Government 2[or any officer specified
by it in this behalf] may, by general or special order, authorize;
Explanation. —The word “services” in 3 [this clause] does not include

the supply of tools and raw materials required for the purposes of
employment;
4 [(f)deductions for recovery of advances of whatever nature

(including advances for travelling allowance or conveyance
allowance), and the interest due in respect thereof, or for adjustment
of over-payments of wages;
(f) deductions for recovery of loans made from any fund constituted
for the welfare of labour in accordance with the rules approved by the
Stale Government, and the interest due in respect thereof;
496
(g) deductions for recovery of loans granted for house-building or

other purposes approved by the State Government, and the
interest due in respect thereof;]
(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a Court or other
authority competent to make such order;
(i) deductions for subscriptions to, and for repayment of advances
from any provident fund to which the Provident Funds Act, 1925
(19 of 1925), applies or any recognized provident fund as defined
5[in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 1961)]
or any provident fund approved in this behalf by 6 [the

appropriate Government], during the continuance of such
approval; 7[***]
1 The words “Governor-General in

Council or” omitted by the A.O. 1937. 2
Ins. by Act 53 of 1964, sec. 6 (w.e.f.
1-2-1965).
3 Subs. by Act 56 of 1974, sec. 3

and Sch. II, for “this sub-clause”. 4
Subs. by Act 53 of 1964, sec. 6,
for clause (f) (w.e.f. 1-2-1965).
5 Subs. by Act 41 of 2005, sec. 6(b), for “in section

58A of the Indian Income-tax Act, 1922 (11 of
1922)” (w.e.f. 9-11-2005).
(w.e.f. 9-11-2005).
7 The word “and” omitted by Ordinance 3 of 1940, sec. 2.
497
(j) deductions for payments to co-operative societies as approved by

6[the appropriate Government] 1[or any officer specified by it in
this behalf] or to a scheme of insurance maintained by the Indian
Post Office; 2[and]
3[4[(k) deductions, made with the written authorization of the person

employed for payment of any premium on his life insurance policy to
the Life Insurance Corporation of India established under the Life
Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of
securities of the Government of India or of any State Government or
for being deposited in any Post Office Savings Bank in furtherance of
any savings scheme of any such Government;]]
5 [(kk) deductions made, with the written authorization of the

employed person, for the payment of his contribution to any fund
constituted by the employer or a trade union registered under the
Trade Unions Act, 1926 (16 of 1926), for the welfare of the employed
persons or the members of their families, or both, and approved by
6[the appropriate Government] or any officer specified by it in this
behalf, during the continuance of such approval.
(kkk) deductions made, with the written authorization of the

employed person, for payment of the fees payable by him for the
membership of any trade union registered under the Trade Unions
Act, 1926 (16 of 1926);]
7 [(l) deductions, for payment of insurance premia on Fidelity

Guarantee Bonds;
(m) deductions for recovery of losses sustained by a railway

administration on account of acceptance by the employed person
of counterfeit or base coins or mutilated or forged currency notes;
(n) deductions for recovery of losses sustained by a railway
administration on account of the failure of the employed person
to invoice, to bill, to collect or to account for the appropriate
498
charges due to that administration, whether in respect of fares,

freight, demurrage, wharf age and carnage or
2 Added by Ordinance 3 of 1940, sec. 2.

3 Added by Ordinance 3 of 1940, sec. 2.
4 Subs. by Act 68 of 1957, sec. 5, for clause (k) (w.e.f. 1-4-1958).

(w.e.f. 9-11-2005). 7 Ins. by Act 53 of 1964, sec. 6 (w.e.f. 1-2-1965).
in respect of sale of food in catering establishments or in respect of

sale of commodities ingrain shops or otherwise;
(o) deductions for recovery of losses sustained by a railway

administration on account of any rebates or refunds incorrectly
granted by the employed person where such loss is directly
attributable to his neglect or default;]
1[(p) deductions, made with the written authorization of the

employed person, for contribution to the Prime Minister’s National
Relief Fund or to such other Fund as the Central Government may,
by notification in the Official Gazette, specify;]
2[(q) deductions for contributions to any insurance scheme framed by

the Central Government for the benefit of its employees.]
3 [(3) Notwithstanding anything contained in this Act, the total

amount of deductions which may be made under sub-section (2) in
any wage-period from the wages of any employed person shall not
exceed—
(i) in cases where such deductions are wholly or partly made for
499
payments to co-operative societies under clause (j) of sub-section

(2), seventy- five per cent, of such wages, and
(ii) in any other case, fifty per cent, of such wages; Provided that
where the total deductions authorized under sub-section (2)
exceed seventy- five per cent, or, as the case may be, fifty per cent,
of the wages, the excess may be recovered in such manner as may
be prescribed.
(4) Nothing contained in this section shall be construed as precluding

the employer from recovering from the wages of the employed
person or otherwise any amount payable by such person under any
law for the time being in force other than 4[the Railways Act, 1989 (24
of 1989)].
Case Law
(i) The requirement of making deposit at the time of filing of appeal

does not destroy the remedy of the appeal; Nagar Palika v.
Prescribed Authority, (1992) 64 FLR 1005 (All).
4 Subs. by Act 41 of 2005, sec. 6(c), for “the Indian Railways Act,
1890 (9 of 1890)” (w.e.f. 9-11-2005).
(ii) If the workman did not work, although the work was offered to
him, he is not entitled to wages; Modi Industries v. State of Uttar
Pradesh, (1992) 64 FLR 471 (All).
(iii) The prescribed Authority has been conferred power to entertain
the application even beyond the period of 12 months; Rahat
Hussain Khan v. Third Addl. District Judge, (1992) 64 FLR 302
500
(All).
(iv) Compensation up to 10 times cannot be granted in case of back
wages awarded by the Industrial Tribunal; Municipal Council v.
Khubilal, (1992) 64 FLR 752 (Raj).
(v) An employer can deduct the wages under section 7(2)(b) of the
Act for absence from duty. Absence from duty by an employee
must be on his own volition and it cannot cover his absence when
he is forced by circumstances created by the employer from
carrying out his duty- In the case in hand as the absence of the
employees was not voluntary in as much as they were not allowed
to resume their work without signing the guarantee bond no
deduction can be made under the Act; French Motor Car Co. Ltd.
Workers Union v. French Motor Car Co. Ltd; (1990) LLR 366;
(vi) It is well-settled that “go-slow” is a serious misconduct being a
covert and a more damaging breach of the contract of
employment; Bank of India v. T.S. Kelawala, (1990) LLR 313 (SC).
(vii) If the absence from duty is due to coercion and the workman
is not a consenting party, then the management has no power to
deduct wages; Kothari (Madras) Ltd. v. Second Addl. District
judge-cum-Appellate Authority; (1990) 76 FJR 209 (AP).
(viii) The workman cannot be denied the wages when he reports
himself on duty but the work is not taken from him by the
employer; J.D.A. v. Labour Centre, (1990) 60 FLR 81 (Raj).
(ix) Appeal is not made to a personal designation but to a court.
Revision lies against the appellate order to the High Court;
Bharatpur Central Co-op. Bank Ltd. v. Rattan Singh, (1990) II CLR
516 (Raj).
8. Fines. —
(1) No fine shall be imposed on any employed person save in respect
of such acts and omissions on his part as the employer, with the
previous approval of 1[the appropriate Government] or of the
prescribed authority, may have specified by notice under sub-
section (2).
501
(2) A notice specifying such acts and omissions shall be exhibited in

the prescribed manner on the premises in which the employment
is carried on or in the case of persons employed upon a railway
(otherwise than in a factory), at the prescribed place or places.
(3) No fine shall be imposed on any employed person until he has
been given an opportunity of showing cause against the fine, or
otherwise, then in accordance with such procedure as may be
prescribed for the imposition of fines.
(4) The total amount of fine which may be imposed in any one wage-
period on any employed person shall not exceed an amount equal
to 2[three per cent, of the wages] payable to him in respect of that
wage-period.
(5) No fine shall be imposed on any employed person who is under
the age of fifteen years.
(6) No fine imposed on any employed person shall be recovered from
him by instilments or after the expiry of ninety days) from the day
on which it was imposed.
(7) Every fine shall be deemed to have been imposed on the day of
the act or omission in respect of which it was imposed.
(8) All fines and all realizations thereof shall be recorded in a register
to be kept by the person responsible for tine payment of wages
under section 3 in such form as may be prescribed; and all such
realizations shall be applied only to such purposes beneficial to
the persons employed in the factory or establishment as are
approved by the prescribed authority.
Explanation. — When the persons employed upon or in any railway,
factory or 3[industrial or other establishment] are part only of a staff
employed under the same management, all such realizations may be
credited to a common fund maintained for the staff as a whole,
provided that the fund shall be applied only to such purposes as are
approved by the prescribed authority.
502
STATE AMENDMENT

(w.e.f. 9-11-2005).
2 Subs. by Act 33 of 1982, sec.8, for “half-an-anna in the rupee”
(w.e.f. 15-10-1982).
3 Subs. by Act 38 of 1982, sec.8, for “industrial establishment”
(w.e.f. 15-10-1982).
503
Punjab, Haryana. —See Proviso II lo section 10(2) of the Punjab

Labour Welfare Fund Act, 1965 (Punjab Act 17 of 1965) and Act 31 of
1966, sec. 88.
9. Deductions for absence from duty. —

(1) Deductions may be made under clause (b) of sub-section (2) of
section 7 only on account of the absence of an employed person
from the place or places where, by the terms of his employment,
he is required to work, such absence being for the whole or any
part of the period during which he is so required to work.
(2) The amount of such deduction shall in no case bear to the wages
payable to the employed person in respect of the wage-period for
which the deduction is made a large proportion than the period
for which he was absent bears to the total period, within such
wage-period, during which by the terms of his employment, he
was required to work:
Provided that, subject to any rules made in this behalf by 1[the

appropriate Government], if ten or more employed persons acting in
concert absent themselves without due notice (that is to say without
giving the notice which is required under the terms of their contracts
of employment) and without reasonable cause, such deduction from
any such person may include such amount not exceeding his wages
for eight days as may by any such terms be due to the employer in
lieu of due notice.
2[Explanation. —For the purposes of this section, an employed

person shall be deemed to be absent from the place where he is
required to work if, although present in such place, he refuses, in
pursuance of a stay-in strike or for any other cause which is not
reasonable in the circumstances, to carry out his work.]
10. Deductions for damage or loss. —
504
3[(1) A deduction under clause (c) or clause (o) of sub-section (2) of

section 7 shall not exceed the amount of the damage or loss caused to
the employer by the neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m)
or clause (n) or clause (o) of sub-section (2) of section 7 until the
employed person

(w.e.f. 9-11-2005).
2 Added by Act 22 of 1937, sec. 2.
3 Subs. by Act 53 of 1964, sec. 7, for sub-section (1) (w.e.f. 1-2-
1965).
505
has been given an opportunity of showing cause against the

deduction, or otherwise than in accordance with such procedure as
may be prescribed for the making of such deductions.]
(2) All such deductions and all realizations thereof shall be recorded
in a register to be kept by the person responsible for the payment
of wages under section 3 in such form as may be prescribed.
11. Deductions for services rendered.—A deduction under clause

(d) or clause (e) of sub-section (2) of section 7 shall not be made
from the wages of an employed person, unless the house-
accommodation amenity or service has been accepted by him, as
a term of employment or otherwise, and such deduction shall not
exceed an amount equivalent to the value of the house-
accommodation amenity or service supplied and, in the case of a
deduction under the said clause (e), shall be subject to such
conditions as 1[***] 2[the appropriate Government] may impose.
12. Deductions for recovery of advances. —Deductions under clause
(f) of sub-section (2) of section 7 shall be subject to the following
conditions, namely: —
(a) recovery of an advance of money given before employment began
shall be made from the first payment of wages in respect of a
complete wage- period, but no recovery shall be made of such
advances given for travelling expenses;
3[(aa)recovery of an advance of money given after employment

began shall be subject to such conditions as 4 [the appropriate
Government] may impose;]
(b) recovery of advances of wages not already earned shall be subject

to any rules made by 5 [the appropriate Government] regulating
the extent to which such advances may be given and the
installments by which they may be recovered.
506
1 The words “the Governor-General in Council or” omitted by

the A.O. 1937.
2 Subs. by Act 41 of 2005, sec. 3, for “the State
Government” (w.e.f. 9-11-2005). 3 Ins.
by Act 53 of 1964, sec. 8 (w.e.f. 1-2-1965).
(w.e.f. 9-11-2005).
(w.e.f. 9-11-2005).
507
1[12A. Deductions for recovery of loans. —Deductions for recovery

of loans granted under clause (fff) of sub-section (2) of section 7 shall
be subject to any rules made by 2[the appropriate Government]
regulating the extent to which such loans may be granted and the rate
of interest payable thereon.]
13. Deductions for payments to co-operative societies and

insurance schemes. —Deductions under clause (j) 3[and clause
(k)] of sub-section (2) of section 7 shall be subject to such
conditions as 2[the appropriate Government] may impose.
4[13A. Maintenance of registers and records. —
(1) 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 and in such form as may be prescribed.
(2) Every register and record required to be maintained under this
section shall, for the purposes of this Act, be preserved for a
period of three years after the date of the last entry made therein.]
14. Inspectors. —
(1) An Inspector of Factories appointed under 2 sub-section (1) of
section 8 of the Factories Act, 1948 (63 of 1948), shall be an
Inspector for the purposes of this Act in respect of all factories
within the local limits assigned to him.
(2) 5[The appropriate Government] may appoint Inspectors for the
purposes
of this Act in respect of all persons employed upon a railway
(otherwise than in a factory) to whom this Act applies.
(3) 1[The appropriate Government] may, by notification in the
508
Official Gazette,
Gazette, appoint such other persons as it thinks fit to be Inspectors for
the
3 Ins. by Ordinance 3 of 1940, sec. 3.
5 Subs. by Act 68 of 1957, sec. 6, for “sub-section (1) of section 10 of

the Factories Act, 1934 (25 of 1934)” (w.e.f. 1-4-1958).
purposes of this Act, and may define the local limits within which
and the class of factories and 2[industrial or other establishments] in
respect of which they shall exercise their functions.
3[(4) An Inspector may, —
(a) make such examination and inquiry as he thinks fit in order to

ascertain whether the provisions of this Act or rules made
thereunder are being observed;
(b) with such assistance, if any, as he thinks fit, enter, inspect and
search any premises of any railway, factory or 4 [industrial or
other establishment] at any reasonable rime for the purpose of
carrying out the object of this Act;
(c) supervise the payment of wages to persons employed upon any
railway or in any factory or 5[industrial or other establishment;]
(d) require by a written order the production at such place, as may be
prescribed, of any register or record maintained in pursuance of
this Act and take on the spot or otherwise statements of any
persons which he may consider necessary for carrying out the
purposes of this Act;
509
(e) 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 which he has reason to believe has been committed by an
employer;
(f) exercise such other powers as may be prescribed:
Provided that no person shall be compelled under this sub-section to
answer any question or make any statement tending to incriminate
himself.
(4A) The provisions of the 6[Code of Criminal Procedure, 1973 (2 of

1974)] shall, so far as may be, apply to any search or seizure under
this sub-
1 Subs. by Act 41 of 2005, sec. 3, for “The State Government”

(w.e.f. 9-11-2005).
2 Subs. by Act 38 of 1982, sec. 9, for “industrial
establishments” (w.e.f. 15-10-1982). 3 Subs. by
Act 53 of 1964, sec. 11, for sub-sec Hon (4) (w.e.f.
1-2-1965).
4 Subs. by Act 53 of 1964, sec. 11, for sub-sec Hon (4) (w.e.f. 1-
2-1965).
5 Subs. by Act 38 of 1982, sec. 9, for “industrial establishments”

(w.e.f. 15-10-1982).
6 Subs. by Act 38 of 1982, sec. 9, for “Code of Criminal
Procedure, 1898 (5 of 1898}” (w.e.f. 15- 10-1982). section
as they apply to any search or seizure made under the
authority of a warrant issued under 1[section 94] of the
said Code.]
(5) Every Inspector shall be deemed to be a public servant within the

meaning of the Indian Penal Code (45 of 1860).
510
2[14A. Facilities to be afforded to Inspectors. —Every employer shall

afford an Inspector all reasonable facilities for making any entry,
inspection, supervision, examination or inquiry under this Act.]
15. Claims arising out of deductions from wages or delay in

payment of wages and penalty for malicious or vexatious
claims. —
3[(1) The appropriate Government may, by notification in the Official

Gazette, appoint—
(a) any Commissioner for Workmen’s Compensation; or

(b) any officer of the Central Government exercising functions as, —
(i) Regional Labour Commissioner; or
(ii) Assistant Labour Commissioner with at least two years’
experience; or
(c) any officer of the State Government not below the rank of
Assistant Labour Commissioner with at least two years’
experience; or
(d) a presiding officer of any Labour Court or Industrial Tribunal,
constituted under the Industrial Disputes Act, 1947 (14 of 1947),
or
1 Subs. by Act 38 of 1982, sec. 9, for “section 98” (w.e.f. 15-10-

1982).
3 Subs. by Act 41 of 2005, sec. 8(i), for sub-section “(1) The State
Government may, by notification in the Official Gazette, appoint a
presiding officer of any Labour Court or Industrial Tribunal,
constituted under the Industrial Disputes Act, 1947 (14 of 1947), or
under any corresponding law relating to the investigation and
511
settlement of industrial disputes in force in the State or any

Commissioner for Workmen’s Compensation or other officer with
experience as a Judge of a Civil Court or as a Stipendiary Magistrate
to be the authority to hear and decide for any specified area all claims
arising out of deductions from the wages, or delay in payment of the
wages, of persons employed or paid in that area, including all
matters, incidental to such claims:
Provided that where the State Government considers it necessary so

to do, it may appoint more than one authority for any specified area
and may, by general or special order, provide for the distribution or
allocation of work to be performed by them under this Act.” (w.e.f. 9-
11- 2005). Under any corresponding law relating to the investigation
and settlement of industrial disputes in force in the State; or
(e) any other officer with experience as a Judge of a Civil Court or a

Judicial Magistrate, as the authority to hear and decide for any
specified area all claims arising out of deductions from the wages,
or delay in payment of the wages, of persons employed or paid in
that area, including all matters incidental to such claims:
(2) Where contrary to the provisions of this Act any deduction has
been made from the wages of an employed person, or any
payment of wages has been delayed, such person himself, or any
legal practitioner or any official of a registered trade union
authorized in writing to act on his behalf, or any Inspector under
this Act, or any other person acting with the permission of the
authority appointed under sub-section (1), may apply to such
authority for a direction under sub-section(3): Provided that
where the appropriate Government considers it necessary so to
do, it may appoint more than one authority for any specified area
and may, by general or special order, provide for the distribution
or allocation of work to be performed by them under this Act.]
512
Provided that every such application shall be presented within 1

[twelve months] from the date on which the deduction from the
wages was made or from the date on which the payment of the wages
was due to be made, as the case may be:
Provided further that any application may be admitted after the said
period of 2 [twelve months] when the applicant satisfies the authority
that he had sufficient cause for not making the application within
such period.
3[(3) When any application under sub-section (2) is entertained, the

authority shall hear the applicant and the employer or other person
responsible for
1 Subs. by Act 53 of 1964, sec. 13, for “six months” (w.e.f. 1-2-1965).
2 Subs. by Act 53 of 1964, sec. 13, for “six months” (w.e.f. 1-2-1965).
3 Subs. by Act 41 of 2005, sec. 8 (ii), for sub-section “(3) When any
application under sub- section (2) is entertained, the authority
shall hear the applicant and the employer or other person
responsible for the payment of wages under section 3, or give
them an opportunity of being heard, and, after such further
inquiry (if any) as may be necessary, may, without prejudice to
any other penalty to which such employer or other person is liable
under this Act, direct the refund to the employed person of the
amount deducted, or the payment of the delayed wages, together
with the payment of such compensation as the authority may
think fit, the payment of wages under section 3, or give them an
opportunity of being heard, and, after such further inquiry, if any,
as may be necessary, may, without prejudice to any other penalty
to which such employer or other person is liable under this Act,
direct the refund to the employed person of the amount deducted,
or the payment of the delayed wages, together with the payment
513
of such compensation as the authority may think fit, not

exceeding ten times the amount deducted in the former case and
not exceeding three thousand rupees but not less than one
thousand five hundred rupees in the latter, and even if the
amount deducted or delayed wages are paid before the disposal
of the application, direct the payment of such compensation, as
the authority may think fit, not exceeding two thousand rupees:
Provided that a claim under this Act shall be disposed of as far as

practicable within a period of three months from the date of
registration of the claim by the authority;
Provided further that the period of three months may be extended if

both parties to the dispute agree for any bona fide reason to be
recorded by the authority that the said period of three months may
be extended to such period as may be necessary to dispose of the
application in a just manner:
Provided also that no direction for the payment of compensation shall

be made in the case of delayed wages if the authority is satisfied that
the delay was due to—
(a) a bona fide error or bona fide dispute as to the amount payable to
the employed person; or
not exceeding ten times the amount deducted in the former case and
not exceeding twenty- five rupees in the latter, and even if the amount
deducted or the delayed wages are paid before the disposal of the
application, direct the payment of such compensation, as the
authority may think fit, not exceeding twenty-five rupees:
Provided that no direction for the payment of compensation shall be

made in the case of delayed wages if the authority is satisfied that the
delay was due to—
514
(a) a bonafide error or bonafide dispute as to the amount payable to

the employed person, - or
(b) the occurrence of an emergency, or the existence of exceptional
circumstances, the person responsible for the payment of the
wages was unable, though of exercising reasonable diligence, to
make prompt payment, or
(c) the failure of the employed person to apply for or accept
payment.” (w.e.f. 9-11-2005).
(b) the occurrence of an emergency, or the existence of exceptional
circumstances, the person responsible for the payment of the
wages was unable, in spite of exercising reasonable diligence; or
(c) the failure of the employed person to apply for or accept
payment.]
1[(4) If the authority hearing an application under this section is
satisfied—
(a) that the application was either malicious or vexatious, the

authority may direct that a penalty 2[not exceeding three hundred
seventy-five rupees] be paid to the employer or other person
responsible for the payment of wages by the person presenting
the application; or
(b) that in any case in which compensation is directed to be paid
under sub-section (3), the applicant ought not to have been
compelled to seek redress under this section, the authority may
direct that a penalty
3[not exceeding three hundred seventy-five rupees] be paid to 4[the

appropriate Government] by the employer or other person
responsible for the payment of wages.
(4A) Where there is any dispute as to the person or persons being the
legal representative or representatives of the employer or of the
employed person, the decision of the authority on such dispute shall
be final.
515
(4B) Any inquiry under this section shall be deemed to be a judicial

proceeding within the meaning of sections 193,219 and 228 of the
Indian Penal Code (45 of I860).]
(5) Any amount directed to be paid under this section may be

recovered—
(a) if the authority is a Magistrate, by the authority as if it were a fine
imposed by him as Magistrate, and
(b) if the authority is not a Magistrate, by any Magistrate to whom
the authority makes application in this behalf, as if it were a fine
imposed by such Magistrate.
Case Law
(i) The Authority has no jurisdiction to entertain and decide claims

involving complicated questions of law and facts. Continuance of
such proceeding will amount to be an abuse of the process of law;
Abdul Waheed v. Authority, Payment of Wages Act, (1995) II LLJ
1079.
1 Subs. by Act 53 of 1964, sec. 13, for sub-section (4) (w.e.f. 1-2-1965).
2 Susb. by Act 41 of 2005, sec. 8(iii), for “not exceeding fifty rupees”
(w.e.f. 9-11-2005).
3 Susb. by Act 41 of 2005, sec. 8(iii), for “not exceeding fifty rupees”
(w.e.f. 9-11-2005).
4 Subs. by Act 41 of 2005, sec. 3, for “The State Government” (w.e.f.
9-11-2005).
516
(ii) Compensation upto 10 times cannot be granted in case of back

wages awarded by the Industrial Tribunal; Municipal Council v.
Khubilal, (1992) 64 FLR 752 (Raj).
(iii) The Wages Court is not at all competent to determine whether
Variable D.A. under the agreement is payable to any workmen
this being a subject-matter for the court constituted under
Industrial Disputes Act. The jurisdiction of the Wages Court is to
entertain application only in two items of cases, namely, of
deductions and fine not authorized under sections 7 to 13 and of
delay in payment of wages beyond the wage periods fixed under
section 4 and the time of payment laid down in section. The
question whether the employees are entitled to get Variable D.A.
or not cannot be treated as deductions, and as such, the Wages
Court has no jurisdiction to entertain this claim; French Motor Car
Co. Ltd. Workers’ Union v. French Motor Car Co. Ltd., 1990 LLR
366.
(iv) The workman cannot be denied the wages when he reports
himself on duty but the work is not taken from him by the
employer; J.D.A. v. Labour Court, (1990) 60 FLR 81 (Raj).
(v) Where the company was closed without any proper notice to the
workmen and the workmen claimed wages for the period they
were kept out of employment, section 25FFF of the Industrial
Disputes Act was not applicable and the claim amounted to
wages and not compensation and the authority under the
Payment of Wages Act had jurisdiction to determine the same;
Banjarwala Tea Estate v. District Judge, 1981 Lab 1C 370: (42) FLR
165: (1981) I Lab LN 371.
16. Single application in respect of claims from unpaid group. —
(1) Employed persons are said to belong to the same unpaid group if
they are borne on the same establishment and if 1[deductions,
have been made from their wages in contravention of this Act for
the same cause and during the same wage-period or periods or if]
their wages for the same wage-period or periods have remained
unpaid after the day fixed by section 5.
517
(2) A single application may be presented under section 15 on behalf

or in respect of any number of employed persons belonging to the
same unpaid group, and in such case 1[every person on whose
behalf such application is presented may be awarded maximum
compensation to the extent specified in sub-section (3) of section
15].
(3) The authority may deal with any number of separate pending
applications, presented under section 15 in respect of persons
belonging to the same unpaid group, as a single application
presented under sub-section (2) of this section, and the provisions
of that sub-section shall apply accordingly.
17. Appeal. —
(1) 2 [An appeal against an order dismissing either wholly or in part
an application made under sub-section (2) of section 15, or against
a direction made under sub-section (3) or sub-section (4) of that
section] may be preferred, within thirty days of the date on which
3[the order or direction] was made, in a Presidency-town 4[***]
before the Court of Small Causes and elsewhere before the District
Court—
(a) by the employer or other person responsible for the payment of
wages under section 3, if the total sum directed to be paid by way
of wages and compensation exceeds three hundred rupees 5[or
such direction has the effect of imposing on the employer or the
other person a financial liability exceeding one thousand rupees],
or
6[(b) by an employed person or any legal practitioner or any official

of a registered trade union authorized in writing to act on his behalf
518
or any Inspector under this Act, or any other person permitted by the
authority to make an application under sub-section (2) of section 15,
if the total amount of wages claimed to have been withheld from the
employed person exceeds twenty rupees or from the unpaid group
to
1 Subs. by Act 53 of 1964, sec. 14, for certain words (w.e.f. 1-2-1965).
2 Subs. by Act 68 of 1957, sec. 7, for “An appeal against a direction
made under subsection (3) or sub-section (4) of section 15” (w.e.f.
1-4-1958).
3 Subs. by Act 68 of 1957, sec. 7, for “the direction” (w.e.f. 1-4-1958).
4 The words “or in Rangoon” omitted by the A.O. 1937.
6 Subs. by Act 53 of 1964, sec. 15, for clause (b) (w.e.f. 1-2-1965).
which the employed person belongs or belonged exceeds fifty rupees,

or]
(c) by any person directed to pay a penalty under 1[sub-section (4)] of

section 15.
2 [(1A) No appeal under clause (a) of sub-section (1)] shall lie unless
the memorandum of appeal is accompanied by a certificate by the
authority to the effect that the appellant has deposited the amount
payable under the direction appealed against.]
3[(2) Save as provided in sub-section (1), any order dismissing either

wholly or in part an application made under sub-section (2) of section
15, or a direction made under sub-section (3) or sub-section (4) of that
section shall be final.]
4[(3) Where an employer prefers an appeal under this section, the

authority against whose decision the appeal has been preferred may,
519
and if so directed by the court referred to in sub-section (1) shall,

pending the decision of the appeal, withhold payment of any sum in
deposit with it.
(4) The court referred to in sub-section (1) may, if it thinks fit, submit
any question of law for the decision of the High Court and, if it so
does, shall decide the question in conformity with such decision.]
Case Law
(i) Jurisdiction of Authority under this Act is not affected by

establishment of Administrative Tribunals Act. Appeal pending
under this section before District Judge cannot be transferred to
Administrative Tribunals under section 29 of the Administrative
Tribunals Act. However, a service matter derided by a civil court
and pending an appeal before District Judge under the Code of
Civil Procedure would be transferred to Administrative Tribunal;
Krishan Prasad Gupta v. Controller, Printing and Stationery,
(1996) I LLJ 296 (SC).
(ii) The appeal and deposit and information of deposit to court have
to be within limitation of 30 days from the date of receipt of the
certified copy of the impugned order; Murudhar Kshethriya
Gramin Bank v. Bhagwan Ram, (1995) II LLJ 1076.
1 Subs. by Act 20 of 1937, sec. 2 and Sch. I, for “sub-section (5)”.

3 Subs. by Act 68 of 1957, sec. 7, for sub-section (2) (w.e.f. 1-4-

1958). 4 Ins. by Act 53 of 1964, sec. 15 (w.e.f. 1-2-1965).
520
(iii) Where an authority concerned passed an ex parte order against

the management, the management ought to have availed of the
remedy available under this section before filing a writ petition;
Laxmi Industrial Corp. v. K.K. Tewari, (1995) II LLJ 276.
(iv) The requirement of making deposit at the time of filing of appeal
does not destroy the remedy of the appeal; Nagar Palika v.
Prescribed Authority, (1992) 64 FLR 1005 (All).
(v) The Appellate Court under section 17 of the Act is amenable to
revisional jurisdiction of the High Court. According to section 17
of the Act, Small Causes Court in a Presidency town and
elsewhere the District Courts, are the Appellate Authority. Both
the Courts are subordinate to the High Court and as such, High
Court by exercising revisional powers under section 115, C.P.C.
can correct any error of jurisdiction committed by the said
Appellate Court; French Motor Car Co. Ltd. Workers’ Union v.
French Motor Car Co. Ltd., 1990 LLR 366.
(vi) Appeal is not made to a persona designata but to a court. Revision
lies against the appellate order to the High Court; Bharatpur
Central Co-op. Bank Ltd, v. Rattan Singh, (1990) II CLR 516 (Raj).
1 [17A. Conditional attachment of property of employer or other

person responsible for payment of wages. —
(1) Where at any time after an application has been made under sub-
section
(2) of section 15 the authority, or where at any time after
an appeal has been filed under section 17 by an employed person or
2 [any legal practitioner or any official of a registered trade union
authorized in writing to act on his behalf or any Inspector under this

Act or any other person permitted by the authority to make an
application under sub-section (2) of section 15] the Court referred to
in that section, is satisfied that the employer or other person
responsible for the payment of wages under section 3 is likely to
evade payment of any amount that may be directed to be paid under
521
section 15 or section 17, the authority or the Court, as the case may
be, except in cases where the authority or Court is of opinion that the
ends of justice would be defeated by the delay, after
2 Subs. by Act 53 of 1964, sec. 16, for certain words (w.e.f. 1-2-
1965).
giving the employer or other person an opportunity of being heard,

may direct the attachment of so much of the property of the employer
or other person responsible for the payment of wages as is, in the
opinion of the authority or Court, sufficient to satisfy the amount
which may be payable under the direction.
(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908),

relating to attachment before judgment under that Code shall, so far
as may be, apply to any order for attachment under sub-section (1).]
18. Powers of authorities appointed under section 15.—Every

authority appointed under sub-section (1) of section 15 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
of 1[Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of
1974)].
522
Case Law
Where an authority passed an order directing a party to produce the

documents asked for by another party, the order would be liable to
be quashed when the order was in the form of a bold directive to the
party to produce the documents asked for by another party and it did
not contain any recital about the documents which was to be
produced and about their relevancy to the controversy which the
authority was called upon to decide; Newspapers Ltd, Allahabad v.
State of Uttar Pradesh, 1982 Lab I C 776.
19. Power to recover from employer in certain cases. — [Rep. by the

Payment of Wages (Amendment) Act, 1964 (53 of 1964), sec. 17
(w.e.f. 1-2-1965).]
20. Penalty for offences under the Act. —
(1) Whoever being responsible for the payment of wages to an
employed person contravenes any of the provisions of any of the
following sections, namely, 2[section 5 except sub-section (4)
thereof, section 7, section 8 except sub-section (8) thereof, section
9, section 10 except sub-section
1 Subs. by Act 38 of 1982, sec. 10, for “Chapter XXV of the Code of
Criminal Procedure, 1898 (5 of 1898)” (w.e.f. 15-10-1982).
2 Subs. by Act 53 of 1964, sec. 18, for “section 5 and sections 7 to 13”
(w.e.f. 1-2-1965).
523
(2) thereof, and sections 11 to 13], both inclusive, shall be

punishable 1[with fine which shall not be less than one thousand five
hundred rupees but which may extend to seven thousand five
hundred rupees].
(2) Whoever contravenes the provisions of section 4, 2[sub-section (4)
of section 5, section 6, sub-section (8) of section 8, sub-section (2)
of section 10] or section 25 shall be punishable 3[with fine which
may extend to three thousand seven hundred fifty rupees].
4 [(2A) Whoever being required to nominate or designate a

person under section 3 fails to do so, such person shall be punishable
with fine which may extend to three thousand rupees.]
5 [(3) Whoever being required under this Act to maintain any records
or registers or to furnish any information or return—
(a) fails to maintain such register or record; or

(b) willfully refuses or without lawful excuse neglects to furnish such
information or return; or
(c) willfully furnishes or causes to be furnished any information or
return which he knows to be false; or
(d) refuses to answer or willfully gives a false answer to any question
necessary for obtaining any information required to be furnished
under this Act, shall, for each such offence, be punishable with
fine 6[with fine which shall not be less than one thousand five
hundred rupees].
(4) Whoever—
(a) willfully obstructs an Inspector in the discharge of his duties
under this Act; or
(b) refuses or willfully neglects to afford an Inspector any reasonable
facility for making any entry, inspection, examination,
supervision, or
524
1 Subs. by Act 41 of 2005, sec. 9(a), for “with fine which shall not be
less than two hundred rupees but which may extend to one
thousand rupees” (w.e.f. 9-11-2005).
2 Subs. by Act 53 of 1964, see. 18, for “section 6” (w.e.f. 1-2-

1965).
3 Subs. by Act 41 of 2005, sec. 9(b), for “with fine which may extend
to five hundred rupees (w.e.f. 9-11-2005).
4 Ins. by Act 41 of 2005, sec. 9(c) (w.e.f. 9-11-2005).
6 Subs. by Act 41 of 2005, sec. 9(d), /or “with fine which shall not
be less than two hundred rupees but which may extend to one
inquiry authorized by or under this Act in relation to any railway,

factory or 1[industrial or other establishment]; or
(c) willfully refuses to produce on the demand of an Inspector any

register or other document kept in pursuance of this Act; or
(d) prevents or attempts to prevent or does anything which he has
any reason to believe is likely to prevent any person from
appearing before or being examined by an Inspector acting in
pursuance of his duties under this Act, shall be punishable with
fine 2[with fine which shall not be less than one thousand five
hundred rupees],
(5) If any person who has been convicted of any offence punishable
under this Act is again guilty of an offence involving
contravention of the same provision, he shall be punishable on a
subsequent conviction with imprisonment for a term 3[which
shall not be less than one month but which may extend to six
months and 4[with fine which shall not be less than three
thousand seven hundred fifty rupees but which may extend to
525
twenty two thousand five hundred rupees] or with both:
Provided that for the purpose of this sub-section, no cognizance shall

be taken of any conviction made more than two years before the date
on which the commission of the offence which is being punished
came to the knowledge of the Inspector.
(6) If any person fails or willfully neglects to pay the wages of any
employed person by the date fixed by the authority in this behalf,
he shall, without prejudice to any other action that may be taken
against him, be punishable with an additional fine which may
extend to 5[seven hundred fifty rupees] for each day for which
such failure or neglect continues.]
21. Procedure in trial of offences.

(1) No Court shall take cognizance of a complaint against any person
for an offence under sub-section (1) of section 20 unless an
application in

(w.e.f. 15-10-1982).
2 Subs. by Act 41 of 2005, sec. 9(e), for “with fine which shall not be
less than two hundred rupees but which may extend to one
3 Subs. by Act 38 of 1982, sec, 11, for “which may extend to three
months or with fine which may extend to one thousand rupees,
or with both” (w.e.f. 15-10-1982).
4 Subs. by Act 41 of 2005, sec. 9(f), for “with fine which shall not be
less than five hundred rupees but which may extend to three
5 Subs. by Act 41 of 2005, sec. 9(g), for “one hundred rupees” (w.e.f.
9-11-2005).
526
respect of the facts constituting the offence has been presented under
section 15 and has been granted wholly or in part and the authority
empowered under the latter section or the Appellate Court granting
such application has sanctioned the making of the complaint.
(2) Before sanctioning the making of a complaint against any person

for an offence under sub-section (1) of section 20, the authority
empowered under section 15 or the Appellate Court, as the case
may be, shall give such person an opportunity of showing cause
against the granting of such sanction, and the sanction shall not
be granted if such person satisfies the authority or Court that his
default was due to—
(a) a bona fide error or bona fide dispute as to the amount payable to
the employed person, or
(b) the occurrence of an emergency or the existence of exceptional
circumstances, such that the person responsible for the payment
of the wages was unable, though exercising reasonable diligence,
to make prompt payment, or
(c) the failure of the employed person to apply for or accept payment.
(3) No Court shall take cognizance of a contravention of section 4 or
of section 6 or of a contravention of any rules made under section
26 except on a complaint made by or with the sanction of an
Inspector under this Act.
1[(3A) No Court shall take cognizance of any offence punishable

under sub- section (3) or sub-section (4) of section 20 except on a
complaint made by or with the sanction of an Inspector under this
Act.]
(4) In imposing any fine for an offence under sub-section (1) of

section 20 the court shall take into consideration the amount of
any compensation already awarded against the accused in any
proceedings taken under section 15.
527
Case Law
The executing court cannot go beyond the order as passed. The High
Court would not interfere in such a matter where the petitioner is not
complying with the mandatory directions issued by competent
authority; Union of India v. Competent Authority, 1998 LLR 189.
22. Bar of suits. —No Court shall entertain any suit for the recovery
of wages or of any deduction from wages insofar as the sum so
claimed—
(a) forms the subject of an application under section 15 which has
been presented by the plaintiff and which is pending before the
authority appointed under that section or of an appeal under
section 17; or
(b) has formed the subject of a direction under section 15 in favour of
the plaintiff; or
(c) has been adjudged, in any proceeding under section 15, not to be
owed to the plaintiff; or
(d) could have been recovered by an application under section 15.
1[22A. Protection of action taken in good faith. —No suit,
prosecution or other legal proceeding shall lie against the
Government or any officer of the Government for anything which is
in good faith done or intended to be done under this Act.]
23. Contracting out. —Any contract or agreement, whether made

before or after the commencement of this Act, whereby an
employed person relinquishes any right conferred by this Act
shall be null and void in so far as it purports to deprive him of
such right.
528
2[24. Delegation of powers. —The appropriate Government may, by

notification in the Official Gazette, direct that any power exercisable
by its tinder this Act shall, in relation to such matters and subject to
such conditions, if any, as may be specified in the direction, be also
exercisable—
(a) where the appropriate Government is the Central Government,

by such officer or authority subordinate to the Central
Government or by the State Government or by such officer or
authority subordinate to the State Government, as may be
specified in the notification;
2 Subs. by Act 41 of 2005, sec. 10, for section “24. Application of Act
in railways, air transport services, minified oil-fields. —The powers
by this Act conferred upon the State Government shall, in relation to
railways, air transport services, mines and oilfields; be powers of the
Central Government” (w.e.f. 9-11-2005).
(b) where the appropriate Government is a State Government, by

such officer or authority subordinate to the State Government as
25. Display by notice of abstracts of the Act.—The person
responsible for the payment of wages to persons 1[employed in a
factory or an industrial or other establishment] shall cause to be
2[displayed in such factory or industrial or other establishment] a
notice containing such abstracts of this Act and of the rules made
thereunder in English and in the language of the majority of the
persons employed 3[in the factory, or industrial or other
establishment], as may be prescribed.
529
4 [25A. Payment of undisbursed wages in cases of death of

employed person. —
(1) Subject to the other provisions of the Act, all amounts payable to
an employed person as wages shall, if such amounts could not or
cannot be paid on account of his death before payment or on
account of his whereabouts not being known, —
(a) be paid to the person nominated by him in this behalf in
accordance with the rules made under this Act; or
(b) where no such nomination has been made or where for any
reasons such amounts cannot be paid to the person so nominated,
be deposited with the prescribed authority who shall deal with
the amounts so deposited in such manner as may be prescribed.
(2) Where, in accordance with the provisions of sub-section (1), all
amounts payable to an employed person as wages—
(a) are paid by the employer to the person nominated by the
employed person, or
(b) are deposited by the employer with the prescribed authority, or
the employer shall be discharged of his liability to pay those
wages.]
26. Rule-making power. —
1 Subs. by Act 38 of 1982, sec. 12, for “employed in a factory”

(w.e.f. 15-10-1982).
2 Subs. by Act 38 of 1982, sec. 12, for “displayed in such
factory” (w.e.f. 15-10-1982).
3 Subs. by Act 38 of 1982, sec. 12, for “in the factory” (w.e.f. 15-
10-1982). 4 Ins. by Act 38 of 1982, sec. 13 (w.e.f. 1-3-1994).
530
(1) 1 [ 2 [The appropriate Government] may make rules to regulate

the procedure to be followed by the authorities and Courts
referred to in sections 15 and 17.
(2) 3[4[The appropriate Government] may, 5[***] by notification in
the Official Gazette, make rules for the purpose of carrying into
effect the provisions of this Act.
foregoing power, rules made under sub-section (2) may—
(a) require the maintenance of such records, registers, returns and
notices as are necessary for the enforcement of the Act 6[prescribe
the form thereof and the particulars to be entered in such registers
or records];
(b) require the display in a conspicuous place or premises where
employment is carried on of notices specifying rates of wages
payable to persons employed on such premises;
(c) provide for the regular inspection of the weights, measures and
weighing machines used by employers in checking or
ascertaining the wages of persons employed by them;
(d) prescribe the manner of giving notice of the days on which wages
will be paid;
(e) prescribe the authority competent to approve under sub-section
(1) of section 8 acts and omissions in respect of which fines may
be imposed;
(f) prescribe the procedure for the imposition of fines under section
8 and for the making of the deductions referred to in section 10;
(g) prescribe the conditions subject to which deductions may be
made under the proviso to sub-section (2) of section 9;
(h) prescribe the authority competent to approve the purposes on
which the proceeds of fines shall be expended; (i) prescribe the
extent to

531
(w.e.f. 9-11-2005).
(w.e.f. 9-11-2005).
5 The words “subject to the control of (he Governor-
General in Council” omitted by the A.O. 1937.
6 Subs. by Act 53 of 1964, sec. 22, for “and prescribe the form
thereof” (w.e.f. 1-2-1965).
which advances may be made and the installments by which they
may be recovered with reference to clause (b) of section 12;
1[(ia)prescribe the extent to which loans may be granted and the rate
of interest payable thereon with reference to section 12A;
(ib) prescribe the powers of Inspectors for the purposes of this Act;]
(j) regulate the scales of costs which may be allowed in proceedings

under this Act;
(k) prescribe the amount of court-fees payable in respect of any
proceedings under this Act; 2[***]
(l) prescribe the abstracts to be contained in the notices required by
section 25;
3[***]
4[(la) prescribe the form and manner in which nominations may be

made for the purposes of sub-section (1) of section 25A, the
cancellation or variation of any such nomination, or the making of
any fresh nomination in the event of the nominee predeceasing the
person making nomination, and other matters connected with such
nominations;
(lb) specify the authority with whom amounts required to be

deposited under clause (b) of sub-section (1) of section 25A shall
532
be deposited, and the manner in which such authority shall deal

with the amounts deposited with it under that clause;]
5[(m) provide for any other matter which is to be or may be

prescribed.]
(4) In making any rule under this section the State Government may
provide that a contravention of the rule shall be punishable with
fine 6[which shall not be less than seven hundred fifty rupees but
which may extend to one thousand and five hundred rupees].
2 The word “and” omitted by Act 53 of 1964, sec. 22 (w.e.f. 1-2-

1965).
3 The word “and” ins. by Act 53 of 1964. sec. 22 (w.e.f. 1-
2-1965) and omitted by Act 38 of 1982, sec. 14 (w.e.f. 15-
10-1982).
6 Subs. by Act 41 of 2005, sec. 11 (a), for “which may extend to

two hundred rupees” (w.e.f. 9- 11-2005).
(5) All rules made under this section shall be subject to the condition
of previous publication, and the date to be specified under clause
(3) of section 23 of the General Clauses Act, 1897 (10 of 1897), shall
not be less than three months from the date on which the draft of
the proposed rules was published.
1[(6) Every rule made by the Central Government under this section
shall be laid, as soon as may be after it is made, before each House of
Parliament while it is in session for a total period of thirty days which
533
may be comprised in one session or in 2[two or more successive

sessions,] and if, before the expiry of the session 3[immediately
following the session or the successive sessions aforesaid,] both
Houses agree in making any modification in the rule, or both Houses
agree that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under
that rule.]
4[(7) All rules made under this section by the State Government shall,
as soon as possible after they are made, be laid before the State
Legislature.]
2 Subs. by Act 38 of 1982, sec. 14, for “two successive sessions”

(w.e.f. 15-10-1982).
3 Subs. by Act 38 of 1982, sec. 14, for “in which it is so laid or session
immediately following” (w.e.f. 15-10-1982).
4 Ins. by Act 41 of 2005, sec. ll (b) (w.e.f. 9-11-2005).
534
Recent Amendments to Industrial Relations Act and other related Acts
Chapter - 18
Recent Amendments to Industrial Relations

Act and other related Acts
Introduction and Learning Assistance: This chapter will introduce

you to the issues related to amendments in the area of labour
relations in various kinds of industries with particular reference to
India, and the conceptual clarity on how Labour in India currently is,
and the issues that are happening across the world contemporarily in
India as well in India. The issues that cropped recently with
amendments made in the Industrial relations Act such as the
compulsory retirement, under FR 56 (j), Pension Rule 48 of CCS
(Pension), and deals with the Time Schedule for review, and it further
exemplifies with live case of the turnaround of 56 (j). The chapter also
highlights the next levels of amendments carried out like the
Industrial Relations Code, 2019, the Industrial Disputes Act, 1947, the
Trade Unions Act, 1926, and the Industrial Employment (Standing
Orders) Act, 1946. The chapter also highlight on the amendments
related to trade Unions and the Negotiating Unions, apart from
clearly describing the changes that happened in the Unfair Labour
Practices, and its related Standing Orders, in the Notice of Change,
the Layoff and retrenchment, the Industrial Establishment, the
Voluntary Arbitration, the Resolution of Industrial Disputes, the
Industrial Tribunals as specified. The chapter also proceeds to the
key amendments introduced under the bill. The chapter moves to the
removal of minister’s discretion, the referral of the unfair dismissed
claims, the conciliation meetings at the Industrial relations
department, and in the sub sections as the individual cannot be an
advocate and solicitor, the appointment of the individual must be
authorized by the employer as the case may be, the amendment of the
535
individual must be within the permission of the DGIR, with the scope
of collective bargaining, the amendments related to strike or lockout
and the additional powers granted to the industrial court, and appeal
of an industrial court award to the high court as well as the
amendments in the penalties concerned.
Compulsory Retirement: The appropriate authority has the absolute

right to retire, if it is necessary to do so in public interest, any
Government employee as per provisions of Rules as under: -
FR 56 (j) Pension Rule 48 of CCS (Pension) Rules, 1972 1 Category
Group ‘A & B’ officers: iii. Entered service before 35 years of age iv.
Attained 50 years of age Other cases: Attained 55 years of age 56 (e) a
Govt. Servant in Group ‘C’ of post who is not governed by any
Pension Rules, can also be retired after he has completed 30 years’
service.
All Government servants covered by CCS (Pension) Rules, 1972 who
have completed 30 years of qualifying service. 2 Notice Period 3
months or 3 months’ pay and allowances in lieu thereof 3 months or
3 months’ pay and allowances in lieu thereof The cases of
Government servant covered by FR 56(j) or Rule 48 of CCS (Pension)
Rules, 1972 should be reviewed six months before he attains the age
of 50/55 years or completes 30 years’ service, whichever occurs
earlier in cases covered by FR 56(j) and 30 years of qualifying service
under Rule 48 of CCS(Pension) Rules, 1972.
Time Schedule for review is as under:- Sl. No. Quarter in which
review is to be made Cases of employee who will be attaining the age
of 50/55 years or will be completing 30 years of service or 30 years of
service qualifying for pension, as the case may be, in the quarter
indicated below to be reviewed 1. January to March July to September
of the same year 2. April to June October to December of the same
year 3. July to September January to March of the next year 4. October
to December April to June of the next year A register of employees
who are due to attain the age of 50/55 years or complete 30 years of
536
service to be maintained. The register should be scrutinized at the

beginning of every quarter by a senior officer in the Ministry /
Department and the review undertaken according to the above
schedule.
Note: Compulsory Retirement as a penalty under CCS (CCA) Rules,
1965 is distinct from the above provisions. All India Service: A
Member of All India Services can be compulsorily retired in terms of
Rule 16(3) of AIS (DCRG) Rules, 1958. On completion of fifteen years
or twenty-five years of qualifying service or attains the age of fifty
years on any date thereafter. Detailed procedure is indicated in the
annexed copy of DoPT letter No.25013/02/2005-AIS.II dated
28.6.2012
Live Case Examples; to understand Applications in real life:

Turnaround to Section 56 (j): the recent amendments and corrections
as well as inclusions and expulsions in the Section 56(j) of
Fundamental Rules to compulsorily retire 15 officials dealing with
indirect taxes and 12 officials of the income tax department over
serious charges of misconduct is historical in nature as per the
Government of India. The incident came to light when the two high
courts in the country have refused to give relief to the tax officials
compulsorily retired by the government on the serious charges of
misconduct. Earlier the government had invoked the section 56(j) of
fundamental rules to compulsorily retire officials based on the
corruption and wrong doings. The start was done by the Calcutta
high court, that had set aside the interim relief given by Central
Administrative Tribunal (CAT) to two officials sacked under the
Section 56J of Fundamental Rules. On Thursday, the Lucknow Bench
of Allahabad High Court had turned down a plea for relief by a
compulsorily retired tax official on jurisdictional grounds. The
Calcutta High Court noted that the Single Judicial Member of CAT,
Kolkata has committed judicial impropriety in passing impugned
orders against compulsory retirement of IRS officers GS Harsha and
Ashok R Mahida. The High Court raised questions on a Single Bench
537
taking up a matter fit for consideration by a Division Bench. AK

Patnaik, a Kolkata Bench member of CAT had impugned the
government order compulsorily retiring Harsha. Following this, the
CAT Chairman transferred him to the Karnataka Bench on Friday.
The High Court further directed a hearing by Division Bench of CAT
on remaining issues, in which the Patnaik shall not be a part. In its
order, the Lucknow Bench of Allahabad High Court turned down the
objection by sacked IRS Ram Kumar Bhargava on grounds that the
Central Administrative Tribunal will decide on the preliminary
objections before escalating the matter further. The Bench ordered the
government to produce all the records including the personal file of
IRS Ram Kumar Bhargava based on which he was compulsorily
retired. The court has also asked the government to provide a copy of
decision of the Screening/Review Committee to Bhargava within a
week. The matter will be heard after six weeks. The Rule 56(j) of
Central Civil Services (Pension) Rules, 1972 provides for periodical
review of performance of government servants with a view to
ascertain whether they should be retained in service or retired from
service in public interest. As per these instructions, the cases of
government servants covered by FR 56(j), 56(1) or Rule 48(1) (b) of
CCS (Pension) Rules, 1972 should be reviewed six months before they
attain the age of 50-55 years, in cases covered by FR 56(j) and on
completion of 30 years of qualifying service under FR 56(1) or Rule 48
of CCS (Pension) Rules, 1972.
Reference: Hindustan Times News Paper/Website, and Press

Information Bureau Government of India
Ministry of Personnel, Public Grievances & Pensions.
28-November-2019 16:20 IST
Example Case 2: Compulsory Retirement Under Section 56(J) of

CCS (Pension) Rules
538
As per the information/data uploaded by the different

Ministries/Departments/Cadre Controlling Authorities (CCAs) on
Probity Portal followed by the rectification requests made by some
Ministries/Departments/CCAs, during the period from July, 2014 to
October, 2019 (as on 21.11.2019), FR 56(j) has been invoked against a
total number of 96 Group ‘A’ officers of different
Ministries/Departments. The Government has the absolute right to
retire Government officials prematurely on the ground of lack of
integrity and ineffectiveness, in public interest, under the provisions
of Fundamental Rules (FR) 56(j)/(l), Rule 48 of Central Civil Services
(CCS) Pension Rules, 1972. These rules lay down the policy of
periodic review and premature retirement of Government servants,
which is a continuous process.
This information was provided by the Union Minister of State

(Independent Charge) Development of North-Eastern Region
(DoNER), MoS PMO, Personnel, Public Grievances & Pensions,
Atomic Energy and Space, DrJitendra Singh in written reply to a
question in RajyaSabha today.
Additional Amendments
The Industrial Relations Code, 2019 was introduced in Lok Sabha by

the Minister of Labour and Employment, Mr. Santosh Kumar
Gangwar, on November 28, 2019. It seeks to replace three labour laws:
a. the Industrial Disputes Act, 1947,

b. the Trade Unions Act, 1926, and
c. the Industrial Employment (Standing Orders) Act, 1946.
The Following are the amendments that were promulgated to be

implemented with immediate effect and had been unanimously
implemented with replacing the three labour laws as per the
requirements.
539
a. Amendments related to Trade Unions.

b. Negotiating Unions
c. Unfair Labour Practices
d. Standing Orders
e. Notice of Change
f. Layoff and retrenchment
g. Industrial Establishment
h. Voluntary Arbitration
i. Resolution of Industrial Disputes
j. Industrial Tribunals
Amendments related to Trade unions: Under the Code, seven or

more members of a trade union can apply to register it. Trade unions
that have a membership of at least 10 percent of the workers or 100
workers, whichever is less, will be registered. Further, a registered
trade union must always have at least seven workers who are
employed in the establishment or the connected industry, as its
members. The central or state government may recognize a trade
union or a federation of trade unions as Central or State Trade Unions
respectively.
Negotiating unions: The Code provides for a negotiation union in an

industrial establishment for negotiating with the employer. If there
is only one trade union in an industrial establishment, then the
employer is required to recognize such trade union as the sole
negotiating union of the workers. In case of multiple trade unions,
the trade union with support of at least 75% of workers will be
recognized as the negotiating union by the central or state
government.
Unfair labour practices: The Code prohibits employers, workers, and

trade unions from committing any unfair labour practices listed in a
Schedule to the Code. These include: (i) restricting workers from
540
forming trade unions, (ii) establishing employer sponsored trade

union of workers, and (iii) coercing workers to join trade unions.
Standing orders: All industrial establishments with at least 100

workers must prepare standing orders on matters listed in a Schedule
to the Code. The central government will prepare model standing
orders on such matters, based on which industrial establishments are
required to prepare their standing orders. These matters relate to: (i)
classification of workers, (ii) manner of informing workers about
hours of work, holidays, paydays, and wage rates, (iii) termination of
employment, (iv) suspension for misconduct, and (v) grievance
redressal mechanisms for workers.
Notice of change: Employers who propose changes in the conditions

of service are required to give a notice to the workers. The conditions
of service for which a notice is required to be given are listed in a
Schedule to the Code and include wages, contribution, and leave.
Lay-off and retrenchment:
The Code defines lay-off as the inability of an employer, due to

shortage of coal, power, or breakdown of machinery, from giving
employment to a worker. It also provides for employers to terminate
the services of a worker, i.e., retrenchment. Employers of industrial
establishments such as mines, factories and plantations with at least
100 workers are required to take prior permission of the central or
state government before lay-off, retrenchment or closure. The central
or state government can modify this threshold number of workers by
notification. Any person who contravenes this provision is
punishable with a fine between one lakh rupees and Rs 10lakh.
Industrial establishments
In which 50 to 100 workers are employed, are required to: (i) pay 50%
of basic wages and dearness allowance to a worker who has been laid
541
off, and (ii) give one month’s notice and wages for such period to a
worker who has been retrenched. Any person who contravenes this
provision is punishable with a fine between Rs 50,000 and two lakh
rupees. Further, if an employer proposes to re-employ retrenched
workers, such workers will have preference over other persons.
Voluntary arbitration:
The Code allows for industrial disputes to be voluntarily referred to

arbitration by the employer and workers. The parties to the dispute
must sign a written agreement referring the dispute to an
arbitrator. After investigating the dispute, the arbitrator will submit
the arbitration award to the government.
Resolution of industrial disputes:
The central or state governments may appoint conciliation officers to

mediate and promote settlement of industrial disputes. These
officers will investigate the dispute and hold conciliation proceedings
to arrive at a fair and amicable settlement of the dispute. If no
settlement is arrived at, then any party to the dispute can make an
application to the Industrial Tribunal.
Industrial Tribunals: The Code provides for the constitution of

Industrial Tribunals for the settlement of industrial disputes. An
Industrial Tribunal will consist of two members: (i) a Judicial
Member, who is a High Court Judge or has served as a District Judge
or an Additional District Judge for a minimum of three years; and (ii)
an Administrative Member, who has over 20 years of experience in
the fields of economics, business, law, and labour relations. The
central government may also constitute National Industrial Tribunals
for settlement of industrial disputes which: (i) involve questions of
national importance, or (ii) could impact industrial establishments
situated in more than one state. Members of the National Industrial
Tribunal will include: (i) a Judicial Member, who has been a High
542
Court Judge, and (ii) an Administrative Member, who has been a

Secretary in the central government.
Reference: The Industrial Relations Code, 2019,Ministry: Labour and

Employment, Introduced at Lok Sabha Nov 28, 2019,Referred from
Standing Committee as on Dec 23, 2019,Report: Standing Committee
Report
Key Amendments Introduced under the Amendment Bill:
The main difference is that the proposed amendments by the Minister

had provisions in relation to managing employment discrimination
complaints but these provisions have been omitted from the
Amendment Bill. It is anticipated that the anti-discrimination
provisions will be included in the amendments to the Employment
Act, which has yet to be tabled at this juncture.
The removal of Minister’s Discretion:
The powers of the Minister in relation to the Recognition and Scope

of Representation of Trade Unions (Part III of the Industrial Relations
Act 1967) will be taken over by the Director General of Industrial
Relations (DGIR) under the Amendment Bill. For example, the
Minister will no longer have the power to decide on whether a
workman is employed in a managerial, executive, confidential or
security capacity; this will instead be determined by the DGIR.
Referral of Unfair Dismissal Claims:
Under the existing provisions, the minister was having a

discretionary power to filter out the frivolous unfair dismissal
complaints and can only refer the claims which are deemed fit for the
Industrial court’s adjudication, and pursuant to the amendment bill,
the minister’s discretionary powers on the above is removed. Under
543
the amendment bill, where the DGIR is satisfied to the extent that
there is no likelihood of representations being settled at the Industrial
relations department, the DGIR shall refer the matter to the Industrial
Court for an award, and the DGIR does not have the discretion to
decide on which cases to refer to the Industrial Court, since there is
no longer an element of discretion accorded to the DGIR, as these
referrals will no longer be subject to judicial review by the civil courts,
and this raises the concerns as the automatic referral of complaints
would be likely to encourage the filing of frivolous and vexatious
claims, that would result in unnecessary backlog of cases at the
Industrial Court.
Conciliation Meetings at the Industrial Relations Department:
Parties now have an additional option as it relates to representation

during conciliation meetings at the Industrial Relations Department.
Aside from being represented by a member of trade union of
employers or workmen or an official of an organization of employers
or workmen, both employers and employees now have the option to
also appoint any person other than the categories of individuals
aforementioned, to represent them (Individual), the conditions are as
follows:
a. The individual cannot be an advocate and solicitor

b. The appointment of the individual must be authorized
by the employer or employee, as the case may be; and
c. The appointment of the individual must be with the
permission of the DGIR.
Further, a workman has a mental disability without having a

guardian adlitem, the next of kin of such workman, who would be
able to apply to the high court for an order to appoint a guardian ad-
litem, to represent the workman during the conciliation meeting.
544
Sole Bargaining Rights: The recent amendment bills of the 2019, has
inserted a new provisions related to the sole bargaining rights, where
in there is more than one trade union who have been accorded
recognition by the employer to represent any particular class of
employees and the new provision also puts in place a procedure for
the employees to decide amongst themselves the kind of trade union
that shall have the sole bargaining rights to represent them or where
there is never any agreement amongst the employees any application
who can be made in writing to the DGIR to determine as to which of
the trade unions can have the sole bargaining right to represent the
employees. On receiving such applications, the DGIR shall provide
employees with the opportunity to vote by means of a secret ballot,
to indicate the preference on which trade union should the sole
bargaining rights represent them. Further to that the trade union has
a right to obtain the sole bargaining rights as no other trade unions
shall have the same rights for a period of three years, unless the trade
unions shall have the same rights for a period of three years and
unless the trade union which obtained the sole bargaining rights has
ceased to exist.
The Scope of Collective Bargaining:
Currently during the collective bargaining, the trade unions

can only raise matters related to the procedures of the promotion of
employees, but pursuant to the amendment bill, the trade unions can
now raise questions of a general character relating to the following
matters:
a. The promotion of any employee from a lower to a higher
grade or category.
b. The transfer of any employee within the organization,
provided that such transfer does not entail any change to
the detriment of the employee’s terms of employment.
c. The employment of any person that the employer can
appoint in the event of vacancies in the organization.
545
d. The employment of any person that the employer may

appoint in the event of vacancies in the organization.
e. The termination of any employee due to redundancy or
reorganization.
f. The dismissal and reinstatement of any employee and
g. The assignment or allocation of duties to an employee that
are consistent or compatible with the employee’s terms of
employment.
Hence the recent amendment bill provides for the disputes arising
from the refusal to collective bargain or any deadlock in the collective
bargaining is the only referred industrial court with the consent of the
parties unless:
a. The trade dispute related to the first collective agreement.
b. The trade dispute refers to any of the essential services
specified in the first schedule.
c. The trade dispute results in acute crisis if not resolved
expeditiously or
d. The parties to the trade dispute are not acting in good faith
to resolve the trade dispute expeditiously.
Amendments related to Strike or Lock-Out:
Any additional provision has always been included in the

amendment bill to enable the minister to stop a strike or lockout in
the event of any strike or lock-out that lasts beyond a certain time or
extends beyond the certain scope, thus endangering the life, personal
safety or health of the whole or part of the population.
The additional Powers Granted to the Industrial Court:
The additional powers granted to the Industrial Court under

the Amendment Bill, and the additional powers given to the
Industrial court as follows:
546
a. Continue with the proceedings of a case notwithstanding

the death of the workman who made the representations.
b. Imposing interest upto 8 percent per annum on the
monetary awards made by the Industrial court, that
calculated way from the 31st day from the date of making
of the award until the day the award is satisfied unless
otherwise directed.
c. To award the back wages or compensation in lieu of the
reinstatement or both to the next-of-kin of the deceased
workman.
Appeal of an Industrial Court Award to the High Court: the recent

amendments states the provision, to any person dissatisfied with an
award of the industrial court can appeal to the high court within 14
days from the date of receipt of the award, and the procedure of the
appeal would be subject to the rules of the court 2012, and the high
court shall have the powers as if the appeal is from a sessions court,
and under the existing regime, the only redress against the industrials
court awards is to file an application for judicial review at the high
court, that is limited to the review of the decision-making process and
not the actual merits of the decision. The inclusion of an appeal
process will allow for scrutiny of the high court on the merits of the
awards.
Amendments in the Penalties:
The amendment bill has increased the penalties for contravention of

the Industrial relations Act 1967. The following are few of the
examples.
a. The penalty for giving financial aid to illegal strikes and
lock-outs has been increased to RM 500 to RM 5,000.
b. The penalty for the non-compliance with an Industrial
court award or collective agreement has been increased
form RM 2,000 to RM 50,000.
547
c. The general penalty for any contravention of the

Industrial Relations Act 1967 and/ or any summons, order
or direction given or made under the act has been
increased from RM 5,000 to RM 50,000.
In a nutshell the evidence is that from the above, the Amendment Bill
brings the significant impact on the employers, although it seems that
the parliament’s intention is to expedite the dispute resolution
process, the removal of the minister’s discretion as it relates to the
referral of unfair dismissal claims will likely to result in a floodgate
of cases at the industrial court. Although there is nothing preventing
the referral of a frivolous case which will result in increased cost for
parties, it is also unclear at the moment, how any industrial court will
manage the likely increase in volume of cases and whether this will
result in a delay of caes being heard before the industrial court, in
view of the changes above and the employers need to implement an
even stringent process to ensure any dismissal is with “ just cause or
excuse” prior to the termination process carried out on an employee.
Another Major Contributions from the Government:
Govt Clears Code on Industrial Relations Bill; Retrenchment

Norms Not Eased: To further help industries in hiring contract
workers directly, the government has proposed to introduce the
concept of fixed term employment in the labour laws.
The Centre on Wednesday approved the Code on Industrial Relations

(IR) Bill, 2019 — considered to be the most contentious labour
laws amendments. The central government has withdrawn its
proposal to give flexibility to big companies, in terms of manpower,
to retrench or lay off workers and shut shop without seeking official
consent, a government official said, requesting anonymity. As a
result, another proposal to increase the compensation for retrenched
or laid off workers is also not a part of the Bill. However, instead of
going for a change in the central law, there are provisions in the Bill
which safeguards the amendments brought in by various state
548
governments, giving flexibility to companies to “hire and fire”

workers — a move that may be cheered by the industry. To further
help industries in hiring contract workers directly, the government
has proposed to introduce the concept of fixed term employment in
the labour laws. Sitharaman said the Bill has proposed giving a legal
framework for fixed term employment through which contract
workers serving a fixed-tenure will get equal statutory social security
benefits as regular workers in the same unit. Under the present
system, firms resort to hiring contract workers through contractors
and they argue that it’s a resourceful exercise. Through the fixed term
employment system, companies will be able to hire contract workers
directly.
“All workers, under a fixed-term contract, will be taken up on

depending upon seasonality of industry but will be treated on a par
with regular workers. This is the biggest feature (of this labour laws
amendment),” Sitharaman said. She was quick to add that labour and
employment minister Santosh Kumar Gangwar “spent a lot of time
in consultation” with the trade unions and other stakeholders –
pointing to the difficulties the government had in approving the
labour code which was first proposed in its previous tenure in April
2015. Without divulging further details about the Bill, the Finance
Minister said that the “state governments can take it (the proposed
law) further.” The code will be introduced in the ongoing winter
session of the Parliament. In 2015, the government had proposed
allowing factories with up to 300 workers to retrench, lay off or shut
shop without seeking the government’s nod in the Industrial
Relations Bill proposed in 2015. At present, factories with up to 100
workers can do so. Amid severe opposition from trade unions on this
proposal, the government decided to shelve it and retain the present
threshold. However, doing so would have led to a situation where
the labour laws amendments of as many as nine states would have
been nullified.
549
That is so because labour falls under the concurrent list of the

Constitution. As a result, both the central and state governments are
allowed to enact their own legislation. States can bring its
amendments with a final approval from the Centre, but if the Centre
amends the model Act, it takes precedence over others. In the past
few years, Gujarat, Jharkhand, Uttar Pradesh, Haryana, Andhra
Pradesh, Maharashtra and Assam have allowed factories with 300
workers to retrench without official sanction. To ensure that all such
states do not have to go to their legislative Assemblies to follow the
central law, the government has given safeguard measures to ensure
that some provisions do not override the changes brought in by the
states. But it’s the opposite when it comes to fixed-term employment.
The central government has proposed to bring fixed-term
employment as part of the labour law, instead of administrative rules,
so that it comes into effect across India. In March 2018, the
government had notified fixed-term employment rules, allowing
industries to hire workers for a fixed tenure, but it was only
applicable to the industry falling under the governance sphere of the
Centre. None of the states had adopted the central government’s rules
and industry found it hard to benefit from the central government’s
fixed-term employment rules.
550
Source: Indian Council for Research on International Economic

Relations via India Spend
Fixed-term contracts could benefit contract workers who would have

to previously work through a middleman and often do not receive
social benefits and recognition through employment certification,
said M S Unnikrishnan, chairman of the Confederation of Indian
Industry’s National Committee on Industrial Relations. “Hiring
workers on roll of the company through fixed-term contracts will
551
directly impact productivity and build trust between the workers and
industry.”
Fewer permanent jobs
The impact of fixed-term jobs will be “disastrous”, said Amit, an

independent researcher and trade union activist working with
labourers in the Neemrana-Gurugram-Manesar belt. Fixed-term
workers would be presumably paid less than permanent employees
and there would be no compensation or settlement in case of
retrenchment as there is for permanent employees, he said. This code
does not have a provision noting that existing permanent worker
vacancies cannot be converted into fixed-term employment, said K R
Shyam Sundar, professor of human resource management at Xavier
School of Management. This means that theoretically, a company
could hire only contract workers. Contract work should be slowly
regularized, but the government has introduced fixed-term
employment which is negating the law for contract labour
regularization, said Kaur of AITUC. Globally, workers with fixed-
term contracts had a significantly higher rate of transition into
unemployment or into inactivity as compared to regular workers,
suggesting less stability in work or income for workers on fixed-term
contracts, according to a March 2015 International Labour
Organization policy brief. During the economic downturn,
temporary workers are affected more as compared to permanent
ones, noted the brief. For example, in the last quarter of 2008, in Spain,
2.5% of permanent workers lost their jobs, compared to 15% of
workers on fixed-term contracts.
Short-term workers
“If fixed-term employment can be designed in a way that it does not

exploit workers and improves skill development and benefits
552
industry, that would be useful for improving investments and the

economy,” said Kapoor.
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Fixed-term jobs need to be regulated, said experts. It must be

associated with material and economic reasons which could be
seasonality or a spurt due to the festive season demand and must
include a minimum and maximum tenure, according to Sundar.
“There should be a cap on the number of cycles a person can be
employed as a fixed-term employee. Otherwise, the law is being
circumvented and the job is not of a seasonal nature,” he said. This is
not the first time that the government has tried to allow fixed-term
jobs. Fixed-term employment was introduced by the National
Democratic Alliance government in 2003 but was scrapped by the
United Progressive Alliance government in 2007 due to opposition
from trade unions. The Centre had allowed fixed-term jobs for the
apparel industry through an October 2016 notification, citing the
seasonal nature of the industry. In March 2018, this was extended to
all sectors. Despite this March 2018 notification, no state government
issued any rules, so fixed-term jobs existed only on paper, Sundar
said.
Diluting worker rights
In 2011, 13% of formal sector Indian employees were members of a

trade union, compared to 90% and 81% in Iceland and Cuba,
respectively, the countries with the highest trade union membership,
as per ILO data. India’s trade union membership is lower than that in
Brazil –19%, Russia – 31%, China – 45%, and South Africa – 28%. The
proposed code retains the provisions of the current law on trade
unions, which say seven or more members of a trade union can apply
to register a union that has a membership of at least 10% of the
workers or 100 workers, whichever is less, noted a summary of the
553
bill by research organization PRS Legislative. The new bill does not
simplify the law on trade unions, giving the states the power to decide
who can and cannot be part of a trade union, said Amit. For instance,
he explained, in West Bengal, contract and permanent workers
cannot form a single union legally, which may be allowed in other
states. The bill also introduces a negotiating union, or sole bargaining
agent, of workers to resolve disputes. If the company has only one
union, that one becomes the negotiating union or sole bargaining
agent. If an organization has more than one trade union, the union
with the support of 75% of the workers on the rolls of the
establishment would be designated as the sole negotiating union. If
there is no trade union with such support, the government or an
authorized officer could institute a negotiating council. This furthers
the ease of doing business but not worker’s welfare and interest, said
Kaur of AITUC. The 75% threshold is unrealistic, said Sundar, and
must be revised downwards to half or, at most, two-thirds. “Hardly
a handful unions in India or anywhere in the world would be able to
satisfy such a high threshold,” he said.
More lay-offs
Currently, employers in industrial establishments such as mines or

plantations with at least 100 workers are required to take prior
permission of the Centre or state government for lay-offs,
retrenchment or closure. The central government had planned to
increase the limit to 300 workers, but protests by trade unions and
activists prevented this change, opposing it as “unilateral and anti-
worker”. The bill allows safeguards that the state governments of
Gujarat, Jharkhand, Uttar Pradesh, Haryana, Andhra Pradesh,
Maharashtra and Assam utilized – they have amended state laws to
set the threshold higher. In India, the central government has had too
much control over labour laws, Sabharwal of Team lease said, citing
“China’s genius” in moving 250 million from farms to cities which
“was not driven by Beijing but 200 mayors competing for job
554
creation”. “Labour markets are local and it is best that decisions be

made in state capitals, or even better, by city governments,”
Sabharwal told India Spend. Not all experts agreed. The proposed law
“has allowed state governments to revise the thresholds through an
executive order”, said Sundar. “It does not involve Legislative
Assembly discussion and the law-making process is rendered null
and void.” “This is not good for workers’ rights,” said Amit, the
labour activist, as there are several firms with less than 300 workers.
The bill does not clarify whether fixed-term workers will be included
in the threshold number of workers.
Reskilling fund
The bill requires that the employer of a retrenched worker contribute

15 days’ wages to a reskilling fund, within 45 days of retrenchment.
The reskilling fund is an idea whose time has come, said Sabharwal
of Team lease, as it pays for transitions and solves for a market failure
in skill financing. “I think linking the fund to Aadhaar, employment
exchange registration and apprenticeship schemes could increase its
effectiveness,” he said. It is a double penalty for employers because
they will have to pay for retrenchment and reskilling as well as
compensation, said Sundar. “It puts the financial burden on the
employer. The state should contribute funds for reskilling.” This new
provision “needs to be clarified”, said Unnikrishnan of CII, pointing
out that an enterprise facing closure would find such a contribution
unfeasible. “Our experience is that not even 1% of the workforce
which was made redundant [post liberalization in the 1990s] could
get training,” said Kaur, adding that it is impossible to know which
skills need to be developed when there are no jobs in the market and
the economy is in a bad shape.
555
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the "Third World": The Emergence of Social Movement Unionism,
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572
All students and practitioners of HR management specialization, HR practitioners, Students of Law,
and for students studying SHRM as specialisation including diploma in Labor Law from all the
universities, practicing advocates dealing with HR and executives practicing in corporate and
MBA students of various universities at various levels, will benefit from learning to manage
strategic areas HR and legal issues related to Industrial Relations in management.
Organization of the Book
The Book is organized into 17 chapters, with Labour, Indian scenario, and its legislation, Indian
Labour Laws, External Trade and Investment Development and Its Impact in India, Indian Minimum
wage: Evolution to Contemporary State, Indian Labour Law and Acts: Evolution, Growth and
Applications, Workplace participation and Its Components, The Payment of Wages Act, 1936,
Working Capital, Trade unions in India, Equal Remuneration Act 1976, Understanding Minimum
Wages and Its Applications in India, Legislative Acts Under Government of India and Labour Law,
The Child Labour Prohibition and Regulation Act 1986, The Cine workers and Cinema Theatre
worker’s (Regulation Of employment Rules, 1984), Equal Remuneration Act, 1976, The Industrial
Disputes Act, 1947 with various additions of contemporary applications in India, and its relevance
to the present practices on the contemporaries of the world.
Prof.Dr.C.Karthikeyan
Alumnus of IIM-A., with 25 yrs of experience in both Industry and
Academia is a Ph.D. (HR)., triple masters in Management Programme from
Reputed Universities, and Institutions with M.B.A in (Human Resource
Management and International Marketing).,M.B.A., in (Education
Management)., M.B.A (International Business)., besides 4 other Masters in
M.Sc (App Psy)., M.S.,(Psychotherapy)., M.Com., and Post Graduate
Diploma in Guidance and Counselling PG.DGC besides pioneer
information of HRIS in the government sector.
Apart from being Director of reputed Institutions in Kerala for the past 13 years, and currently the
Director of T.John College, Bangalore, of the Management Studies, he is also a recognized Ph.D.
Guide and Evaluator for Bharathiar University, Career Point University, ICFAI University, Jharkhand,
Vishwesariya Technological University, Karnataka, Karpagam University., and important member of
other research and evaluation panels. He is a Recognised International Certified PPA (Personal
Profile Analyst) by Thomas UK. He is known as a recognized Journal Reviewer of highly reputed
international journals like the American Journal of Psychological Reports, USA, and Journal of
Leadership Studies USA, and other International Journal of Repute in India as well. He has
authored extensively in reputed journals, including Scopus and other reputed UGC recognized
journals with impact factors ranging from 5 to 7+ and a very active member of the various
research bodies. He is currently the Director, Management Studies, T.John College, Bangalore,
Karnataka, affiliated to Bangalore University. He is also the chairperson of the UBA (Unnath
Bharath Abhiyan) program for the college, a scheme promoted by MHRD, and heading research
committee of the college besides taking charge of the innovative training programs of teachers
under CTL, Centre for Teaching and Learning under the aegis of T.John College.
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INDUSTRIAL RELATIONS

CONCEPTS,DEVELOPMENTS,ADVANCEMENTS AND APPLICATIONS

Prof. Dr. C. Karthikeyan

Copyright © Dr. C. Karthikeyan, 2020

All rights reserved. No part of this publication may be reproduced,

First Published in May 2020

PROF DR. C. KARTHIKEYAN

Who will benefit from this Book

All students and practitioners of HR management specialization, HR

Organization of the Book

The Book is organized into 17 chapters, with Labour, Indian scenario,

I am indebted to so many persons that a complete acknowledgement

Many scholars, writers, and managers are acknowledged through

Finally, to my Radhi and Rajieth.

Prof. Dr. C. Karthikeyan

Chapter 1: Labour, Indian scenario, and its legislation .......... 1

Chapter 2: Indian Labour Laws................................................. 17

Pre-liberalization period (1947–1992): Indian Economic Policy ....... 22

Chapter 3: External Trade and Investment Development and

Income and consumption and impact on Indian Labour .................. 42

Chapter 4: Indian Minimum wage: Evolution to

Informal minimum wages: Indian Scenario ....................................... 58

Consequences of Minimum Wage Laws ............................................. 60

Wage slavery .......................................................................................... 67

Chapter 5: Indian Labour Law and Acts: Evolution, Growth

Factories Act 1948................................................................................... 72

Wage regulation ..................................................................................... 74

Chapter 6: Workplace participation and Its Components .... 77

Collective action ..................................................................................... 78

Chapter 7: The Payment of Wages Act, 1936 ........................... 82

Object of the Act; Applications ............................................................. 82

Time of Payment: of Wages. [Section 5] .............................................. 85

Claims arising out of deductions from wages .................................... 92

Chapter 8: Working Capital ........................................................ 96

Main provisions under the Act ............................................................. 98

Procedure for fixing and revising minimum wages (section 5) ....... 99

Fixing hours for normal working day (section 13)........................... 100

Maintenance of registers and records (Section 18) ........................... 101

Penalties for Offences (Section 22) ..................................................... 102

Chapter 9: Trade unions in India ............................................. 103

Evolution of Trade Unions in India ................................................... 103

Liberalization (1991) to Present .......................................................... 105

Chapter 10: Equal Remuneration Act 1976 ............................. 107

Chapter 11: Equal Remuneration Act 1976 ............................. 111

Main provisions under the Act ........................................................... 117

Chapter 13: Legislative Acts Under Government of India and

Reservation of training places ............................................................ 126

Hours of work....................................................................................... 130

Chapter 14: The Child Labour Prohibition and Regulation Act

Part II - Prohibition of employment of children in certain occupations

Chapter III Procedure for reference of disputes to a Conciliation

Chapter 16: Equal Remuneration Act, 1976 ............................ 180

Complaints and Claims under the Act .............................................. 186

Chapter 17: The Industrial Disputes Act, 1947 ...................... 193

Chapter II – B - Reference of certain individual disputes to grievance

Chapter V Strikes and Lockouts ......................................................... 243

Chapter V – C – Unfair labour practices............................................ 267

The First Schedule Section 2(N) (VI) Industries which may be

The Fourth Schedule Section (9A) Conditions of Service for change of

II - On the part of workmen and trade union of workmen ............. 291

Part I - Procedure for reference of industrial disputes to boards of

The Industrial Disputes (Central) Rules, 1957 .................................. 310

Part VI – Representation of parties .................................................... 312