Labour Legislations

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Labour Legislations
Trade Unions Act, 1926
N. M. Joshi, then the general secretary of the AITUC, moved a proposal to form a
legislation for registration of tra
de unions and protection of the legitimate trade union activities. Subsequently, The
Bill was passed and Indian Trade Unions Act, 1926, came into picture.
What are the main objectives: -The Trade Unions Act,1926 provides for registration
of trade unions (including association of employers) with a view to render lawful
organization of labour to enable collective bargaining. The Act also confers on a
registered trade union certain protection and privileges.
The Act extends to whole of India and it applies to all kinds of unions of workers and
associations of employers which aim at regularising the labour Management
relations.
The Act is a Central enactment but it is administered by and large, by the State
Government. Trade Unions whose objectives are not restricted to one state, are
subject of the Central Government. The State Government shall appoint a Registrar
of Trade Unions assisted by Additional or Deputy Registrars, for each state.
**** The treaty of Versailles established two bodies -the League of Nations and
the ILO. India was recognised as a founder member of ILO. This is a tripartite
body on which each member state nominates its representatives. For the
foundational conference of ILO held in 1919, the Government of India
nominated N.M. Joshi as the labour member in consultation with the Social
Service League.
**** Accordingly, the Supreme Court in Food Corporation of India Staff Union
v. Food Corporation of India1 directed that the following norms and procedure
shall be followed for assessing the representative character of trade unions by
the “secret ballot system” and they are as follows. (i) As agreed, to by the
parties the relative strength of all the eligible unions by way of secret ballot
be determined under the overall supervision of the Chief Labour
Commissioner (Central) (CLC) as the appropriate Government is the Central
Government in this case.
(ii) The CLC will notify the Returning Officer who shall conduct the election
with the assistance of the management. The Returning Officer shall be an
officer of the Government of India, Ministry of Labour.
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(iii) The CLC shall fix the month of election while the actual date/dates of
election shall be fixed by the Returning Officer. The Returning Officer shall
require to furnish sufficient number of copies of the lists of all the
employees/workers. The said list shall constitute the voters list.
(iv) The management shall display the voters list on the notice boards and
other conspicuous places and shall also supply copies thereof to each of the
unions for raising objections, if any. The unions will file the objections to the
Returning Officer within the stipulated period and the decision of the
Returning Officer shall be final.
**** The dispute raised before the Supreme Court in M.T. Chandersenan v. N.
Sukumaran2 was that whether subscriptions not having been paid as
required by the bye-laws, the members who have defaulted payment of their
subscription can be members of the union. There is no doubt that if
subscriptions are not paid in accordance with the bye-laws, persons who have
failed to pay cannot be considered as members of the union. The Court
directed that the subscriptions have to be paid and he is bound to accept the
arrears as well as the current subscription and enroll them as members.
****Principle to Govern Trade Unions: -
• Doctrine of vested Interest: - It states that wages and other conditions

of employment should not be mixed with work.
• Doctrine of supply and Demand: -It holds that collective action on the
part of workers enables the attainment of their objectives.
• Doctrine of Living Wages: -It talk empowering workers to demand living
wages.
• Doctrine of Partnership: -it accepts workers as patterners.
• Doctrine of Socialism: - It implies that every worker has a right to work
and leisure, maintenance in old age, sickness and equal pay for equal
work.
Now, Let’s see some of the important definitions-

➢ Trade Union: Means ‘any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between workmen
and employers or between workmen and workmen or for imposing restrictive
conditions on the conduct of any trade or business and includes any
federations of two or more Trade Unions’ [Sec. 2 (h)].
➢ Trade Dispute: Means ‘any dispute between employers and workmen or
between workmen and workmen, or between employers and employers which

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is connected with the employment or non-employment, or the terms of
employment or the conditions of labour, of any person
Registration of Trade Unions
➢ Any seven or more members of a trade union, by subscribing their names
to the rules of the trade union, complying with the provisions of the Act,
may apply for its registration. However, no trade union of workmen will be
registered under the Act unless at least 10 per cent or 100 of the
workmen, whichever is less, engaged or employed in the establishment or
industry with which it is connected, are the members of such a trade
union.
➢ Besides the above point, no trade union of workmen is to be registered
unless it has, on the date of making the application, not less than 07
persons as its members.
Application for Registration: - Every application for registration is to be
accompanied by a copy of the rules of the trade union and a statement of the
following particulars:
1. The names, occupations and addresses of the members making the
application.
2. In the case of a trade union of workmen, the names, occupations and
addresses of the place of work of the members making the application.
3. The name of the trade union and the address of its head office.
4. The titles, names, ages, addresses and occupations of the office-bearers of
the trade union.
In addition to above, if a trade union has been in existence for more than one year
before the making of the application, a general statement of the assets and liabilities
of the trade union has also to be submitted along with the application
Certificate of Registration: - If the Registrar is satisfied that the trade union has
complied with all the requirements of the Act in regard to registration, Registrar is
required to issue a certificate of registration in the prescribed form.
****The payment of a subscription by members of the trade union which is not to be
less than Rs.1 per annum for rural workers, Rs.3 per annum for workers in other
unorganized sectors, and Rs.12 per annum for workers in any other case.
****The duration of the period not being more than 3 years, for which the members
of the executive and other office-bearers of the trade union will be elected.
****The safe custody of the funds of the trade union, an annual audit of the account
books by office-bearers and members of the trade union
****A registered trade union of workmen must at all times continue to have not less
than 10 per cent or 100 of the workmen, whichever is less, subject to a minimum of
seven members, engaged or employed in an establishment or industry with which it
is connected [Sec. 9A]

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****A certificate of registration can be cancelled by the Registrar, If the Registrar is
satisfied that the certificate has been obtained by fraud or mistake or that the trade
union has ceased to exist or has wilfully contravened any provision of the Act,
However, He has to not less than two months’ prior notice in writing specifying the
ground on which the certificate of registration is proposed to be withdrawn or
cancelled.
Appeal
A person aggrieved by the refusal of the Registrar to register a trade union or by the
withdrawal or cancellation of a certificate of registration may make appeal to the
following relevant appellate courts within the prescribed period:
1. Where the head office of the trade union is situated within the limits of a
Presidency town to the High Court
2. Where the head office is situated in an area falling within the jurisdiction of a
Labour Court or an Industrial Tribunal
3. Where the head office is situated in an area to such court, not inferior to the court
of an additional or assistant judge of a principal civil court of original jurisdiction, as
appointed by the appropriate government for the area
In the event of the dismissal of an appeal by a court appointed by the government,
the aggrieved person may appeal to the High Court
****All communications and notices are generally to be addressed to the registered
office of the trade union. Every registered trade union is required to communicate to
the Registrar any change in address within 14 days of such change.
Rights of Registered Trade Unions: -
• Immunity from Criminal Conspiracy: - An office-bearer or member of a

registered trade union is not liable to punishment under Sub-section 120(B)
of the Indian Penal Code (dealing with criminal conspiracy). No suit or other
legal proceeding is maintainable in any civil court against any registered trade
union or any of its office-bearers or members in respect of any act done in
contemplation or furtherance of a trade dispute to which a member of the
trade union is a party
Objects On Which General Funds of Registered Trade Unions May Be Spent-
• Payment of salaries, allowances and expenses to office-bearers of the trade

union.
• Payment of expenses for the administration of the trade union, including
audit of the accounts of the general funds.
• For any prosecution or defence of any legal proceeding
• The conduct of trade disputes on behalf of the trade union or any of its
members.
• The compensation of members for loss arising out of trade disputes.
• Allowances to members or their dependants on account of death, old age,
sickness, accidents or unemployment.

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• For educational, social or religious benefits for members
****However, the Act lays down that no member can be compelled to make
contributions to the political fund
Appointment of Office Bearers
At least 50% of the total number of office-bearers of every registered trade union
in an unorganized sector must be persons actually engaged or employed in the
industry with which the trade union is connected.
In all other cases, all office-bearers of a registered trade union, except not more
than one-third of the total number of office-bearers or five, whichever is less, are
to be persons actually engaged or employed in the establishment or industry with
which the trade union is connected.
An employee who has retired or has been retrenched is not to be construed as
outsider for the purpose of holding an office in a trade union.
A member of the Council of Ministers or a person holding an office of profit (not
being in engagement or employment in an establishment or industry with which
the trade union is connected) in the union or a state is to be a member of the
executive or other office-bearer of a registered trade union [Sec. 22]
For being appointed as an Office-bearer or executive of registered trade union, a
person must have-
1.attainded the age of 18 years
2. not have convicted of any offence involving moral turpitude and sentenced to
imprisonment or a period of at least 5 years has elapsed since his release.
Who can be a member?
Any person who has attained 15 years of age may become a member of a
registered trade union. Such a member may enjoy all rights of a member and
execute all instruments and give all acquaintances necessary to be executed
Change of name
Any registered trade union may change its name with the consent of at least 2/3rd
of the total number of its members, but notice in writing signed by the secretary
and at least seven members of the trade union has to be given to the Registrar of
Trade Unions.
Amalgamation of Trade Unions
Any two or more registered trade unions may amalgamate together with or
without dissolution or division of funds on the condition that the votes of at least
one-half of the members of each trade union entitled to vote are recorded and
that at least 60 per cent of the votes recorded are in favour of the proposal.
Dissolution of a Registered Trade Union

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In case of dissolution of a registered trade union, a notice signed by seven
members has to be sent to the Registrar of Trade Unions within 14 days of the
dissolution. If the Registrar is satisfied that dissolution has been made in
accordance with the rules of the trade union, they are required to register the
dissolution which is to come into effect from the date of such dissolution. If the
trade union is dissolved, its funds have to be distributed in accordance with the
rules of the trade union
Change of Registered Office
All notices and Correspondence to registered trade union are addressed to its
registered office. Notice of any change in registered office address should be given to
Registrar in writing, within14 days of such change.
****A registered trade union is required to send annually a general statement of all
receipts and expenditure and of the assets and liabilities of the trade union as
existing on 31 December.
Recommendations of The Second NCL (2002) Some of the more notable

recommendations of the second NCL in regard to trade unions and trade union
legislation as follows:
1. A specific provision may be made to enable workers in the unorganized sector to
form trade unions, and get them registered even where an employer-employee
relationship does not exist or is difficult to establish; and the proviso stipulating 10
per cent of membership shall not apply in their case
2. The present system of eligibility for registration of employers’ organizations may
continue
3. A worker who is not a member of any trade union will have to pay an amount
equal to the subscription rate of the negotiating agent or the highest rate of
subscription of union out of the negotiating college. The amounts collected on this
account may be credited to a statutory welfare fund
4. Any such dispute which currently goes under the appellation of inter-union or
intra-union rivalries should be capable of being resolved by reference of the dispute
to the Labour Court having jurisdiction, either so moto or by one or both the
disputing parties or by the state
5. Federations of trade unions as also central organizations of trade unions and
federations should be covered within the definition of trade union and be subject to
the same discipline as primary trade union. The same dispensation will apply to
employers’ organizations and employees’ organizations
6. The Commission does not favour craft-based or caste-based organizations of
workers or employees or employers
7. An unregistered organization shall not be entitled to any privileges, immunities
and rights.

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8. Other provisions of the Trade Unions Act, 1926, including the provision to set up
a separate political fund may be allowed to continue and appropriately included in
the proposed integrated law. However, care must be taken to ensure that the general
funds of trade unions are not used for political purposes
****Important shortcomings of the Act include: (i) registration of unions not
compulsory, (ii) encouragement to the formation of small-sized unions, (iii) absence
of time-limit in registration, (iv) encouragement to the persistence of outsiders in the
executive, (v) light punishments for violations of the provisions, and (vi) absence of
provisions relating to recognition and unfair labour practices.
****A copy of every alteration made in the rules of the union should be sent to the
Registrar within 15 days of making the alternation.
Offences and Penalties
1. If the registered trade union/its office bearers or members fail to give any
notice or send any statement as required under the act----Fine upto Rs. 5 plus
additional fine upto Rs.5 per week in case of continuing offence (Maximum
fine imposable Rs. 50)
2. If any person wilfully makes any false entry in the annual statement of the
union or its rules----Fine upto Rs. 500/-
3. If any person, with intent to deceive, gives an incorrect copy of rules of the
union to any member or a prospective member---Fine upto Rs.200
………………………………………………………………………………………………………………………………………………………….
Employees’ Compensation Act, 1923

(Come into force on the 01 July, 1924)
Defence Mechanisms available to the employer in such compensation cases under

the common law are the following:
1. Doctrine of assumed risk
2. Doctrine of contributory negligence
3. Doctrine of common employment and fellow servants’ responsibility
4. Doctrine that ‘personal claim comes to an end with the death of either party’
5. Doctrine of unknown persons’ responsibility
Doctrine of Assumed Risk:
➢ Under the doctrine of assumed risk, the employer argued that the employee
took the risk upon themselves (volenti non fit injuria) when they accepted.
➢ However, the employer generally did not adopt this line of defence where
the regular work of the employee was obviously dangerous. But where the

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employee was asked to undertake a dangerous operation outside ordinary
duties, the employer had a good defence.
Doctrine of Contributory Negligence:

➢ Under this line of defence, the employer could say that the injury was
caused entirely due to the workman’s fault.
➢ A defence of contributory negligence also arose if, in addition to the
employer’s negligence, the injured employee was negligent and the injury
was the result of both the causes.
Doctrine of Common Employment and Fellow Servant’s Responsibility:

➢ The doctrine of common employment was adopted by the employers in
respect of accidents resulting from the negligence of fellow workmen.
➢ Under this doctrine, the employer contended that the worker knew at the
time of employment that they were exposed to the risk of injury
➢ Thus, the employer was not liable to pay damages in respect of injuries
arising from the carelessness of fellow-workmen.
Doctrine that ‘Personal Claim Comes to an End with the Death of Either Party’:
➢ This line of defence pertained to fatal accidents. As the claim of a workman
was based on the personal negligence of the employee, the employer argued
that ‘personal claim comes to an end with the death of either party (Actio
personalis moritur cum persona).
Doctrine of Unknown Person’s Responsibility:

➢ In case of accidents caused by the negligence of an unknown person, the
employer contended that he was not liable to pay damages for such accidents,
as his liability was confined only in respect of accidents resulting from his
personal negligence.
➢ The conception of negligence as the only basis for a claim to compensation
was ultimately done away with under the Workmen’s Compensation Acts.
A significant amendment was made in the Act in 2009 under which the name of the
Act was changed to Employees’ Compensation Act, 1923. This was done in view of the
recommendations of the 2nd National Commission on Labour (2002), which had
suggested the use of the word ‘employee’ in place of ‘workman’ in order to ensure
gender neutrality. and has laid down the eligibility criteria for the appointment of
commissioners.
****Schedule I-
• Part-I-List of injuries deemed to result in permanent total disablement

• Part-II- List of injuries deemed to result in permanent partial
disablement
****Schedule II-List of persons who, are included in the definition of workmen

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****Schedule III-List of occupational diseases
****Schedule IV-Factors for working out lump sum equivalent of compensation
amount in case of Permanent disablement and death.
**** An Act to provide for the payment by certain classes of employers to their
Employees of compensation for injury by accident.
Main features of the Act

The “Employees Compensation Act, 1923” is an Act to provide payment in the form
of compensation by the employers to the employees for any injuries they have
suffered during an accident. When the employer is not liable to pay
compensation-
1. If the injury does not end in the entire or partial disablement of the
employee for a period exceeding three days.
2. If the injury, not leading in death or permanent total disablement, is caused
by an accident which is directly attributable to: -
• The employee having at the time of the accident is under the influence of
drink or drugs
• The willful disobedience of the employee to an order, for the purpose of
securing the safety of employees or
• The willful removal or disregard by the employee of any safety guard or
other device which has been provided for the purpose of securing the
safety of employees.
Who will be receiving the compensation on behalf of the deceased?
Dependents: -Sec.-2(d)
• widow or a minor- who is a son(minor) or unmarried daughter

(minor) or married if widowed or a widowed mother is entitled to
compensation, illegitimate son and daughter.
• If the family of the deceased is wholly dependent on the earnings of the
employee at the time of his death or a son or daughter who has not
attained the age of eighteen years
• A parent other than a widowed mother
• A minor brother or an unmarried sister or a widowed sister if a
minor
• A widowed daughter-in-law
• A minor child of a predeceased son
• A minor child of a predeceased daughter where no parent of the child
is alive
• A paternal grandparent if no parent of the employee is alive.

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"Managing agent"Sec.-2(f)- means any person appointed or acting as the

representative of another person for the purpose of carrying on such other
person's trade or business, but does not include an individual manager
subordinate to an employer
"Minor"Sec.2(ff)- means a person who has not attained the age of 18 years
Partial disablement"Sec.2(g)- means, where the disablement is of a temporary
nature, such disablement as reduces the earning capacity of a workman in any
employment in which he was engaged at the time of the accident resulting in the
disablement, and, where the disablement is of a permanent nature, such
disablement as reduces his earning capacity in every employment which he was
capable of undertaking at that time.
E.g.-Ram, who worked in a printing business, got his fingers cut off by accident. This
is ―Partial Disablement‖ as it reduces his capacity to work in any such employment
of similar nature.
Every injury specified in Part II of Schedule I shall be deemed to result in permanent
partial disablement.
"Total disablement"Sec.2(l)- means such disablement, whether of a temporary or
permanent nature, as incapacitates a workman for all work which he was capable
of performing at the time of the accident resulting in such disablement
Permanent total disablement shall be deemed to result from every injury specified in
Part I of Schedule I, mentioned below
or
from any combination of injuries specified in Part II, where the aggregate percentage
of the loss of earning capacity, the said Part II against those injuries, amounts to
100% or more
To be eligible for the Employees’ Compensation Act’s benefits there are some
requirements which need to be fulfilled:
1. You must be an employee of the Company or Organization.

2. You must have been injured at the workplace or the job was as such that
you have been injured.
3. Arising out of and in the course of employment (‘arising out of employment
are understood to mean that “during the course of employment, injury
has resulted from some risk incidental to the duties the service which
unless engaged in the duty owing to the master it is reasonable to
believe the employee would not otherwise have suffered. There must
be a causal relationship between the accident and employment.
If the accident had occurred on account of a risk which is an incident of the

employment; the claim for compensation must succeed unless of course the
employee has exposed himself to do an added peril.)
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Note: - Whether an employee earning more than the wage ceiling stipulated under
the Employees' State Insurance Act, 1948 is eligible to claim compensation under
Employee's Compensation Act?
In the matter of the S. Palanivel v. Deputy Commissioner of Labour, Salem,the

Madras High Court held that, an employee, whose wages exceed the ceiling limit
specified under the ESI Act making him ineligible to claim compensation under
the ESI Act, is entitled to claim compensation under the Employee's
Compensation Act.
**** D O C T R I N E O F A D D E D P E R I L
When an employee performs something which is not required in his duty, and
which involves extra danger, the employer cannot be held liable to pay
compensation for the injuries caused. In the case of Devidayal Ralyaram V/S
Secretary of State, it was ruled that the doctrine of added peril was used as Défense
and the employer was not liable for the compensation.
**** Doctrine Of Notional Extension –
➢ Notional Extension of employer’s premises does include the time when he

leaves the place for work as well as leave for home after the employment.
➢ When there is a causal connection between the accident and the place
where the employee is working, compensation is payable for the disability or
death of the person according to the Employees Compensation Act. This is the
Doctrine of Notional Extension of the workplace.
Employer's Liability for Compensation. [Sec 3]

(1) If personal injury is caused to a employee by accident arising out of and
in the course of his employment, his employer shall be liable to pay
compensation
(2) Employer shall not be liable to pay compensation in the following
situations, (a) Any injury which does not result in the total or partial
disablement of the workman for a period exceeding 3 days, employer
is not liable to pay the compensation.
(3) Accidents caused due to,
(i) the workman having been at the time under the influence of
drink or drugs, (alcohol) or
(ii) the willful disobedience of the workman to an order
expressly given, or to a rule expressly framed, for the purpose
of securing the safety of workmen, or
(iii) the willful removal or disregard by the workman of any
safety guard or other device which he knew to have been
provided for the purpose of securing the safety of workmen

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Occupational Diseases.
➢ An occupational disease is any chronic ailment that occurs as a result of
work or occupational activity. It is an aspect of occupational safety and
health. If any injury or disease is caused which is specified in Part A, B and
C of Schedule III, it shall be deemed to have been an occupational disease or
injury ―arising out of and in the course of employment‖ enabling the employee
to claim compensation.
Thus, the Schedule III is divided in Part A, B & C in the following manner: —
If an employee employed in any employment specified in Part A of Schedule III

contracts any disease specified therein it shall be presumed that such disease is
“occupational disease” peculiar to that employment. For this no length of service
is prescribed.
If an employee is employed in any employment specified in Part B of Schedule

III for a period of 6 months and attracts any disease specified therein, it shall be
presumed that such disease is “occupational disease” peculiar to that
employment.
If an employee is employed in any employment specified in Part C of Schedule

III for a period as is prescribed by the Central Govt, attracts any disease
specified therein as occupational disease, it shall be deemed to be an injury
peculiar to that employment.
Note: - Diseases which are specified in part A, B & C of the Schedule III, need
not to be proved that they are 'occupational diseases' as they are already
declared by schedule III. In respect of any disease not covered by schedule III, it is
must for an employee to prove that such a disease was contracted in the course
of employment.
Amount of Compensation (Section-4)

➢ This section deals with how compensation is to be calculated for injured or
deceased employee.
➢ Calculation of the compensation is made on the monthly wage or salary of
employee.
➢ The amount of compensation varies from employee death, permanent total
disablement, permanent partial disablement and temporary disablement.
1. Compensation in Case of Death:

• 50% of the Monthly Wage x Relevant factor as per the age of the
worker
• Funeral expenses of Rs. 10,000 is also payable
• The minimum amount payable is Rs. 120,000

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2. Compensation in case of Permanent Total Disability (PTD)

• 60% of the Monthly Wage x Relevant factor as per the age of the
worker
• Minimum amount payable in this case is Rs. 140,000
3. Compensation in case of Permanent Partial Disability (PPD)

• A percentage of the compensation payable under PTD. This
percentage needs to be estimated based on the ―extent of the
reduction in earning capacity‖ of the worker.
4. Compensation in case of Temporary Disability (Total or Partial)

• 25% of the Monthly Wage of the Worker payable every half month
(fortnightly)
• The compensation is payable if the worker is disabled for more than
three consecutive days
• The maximum tenure for the compensation is five years
Note: - The half-monthly payment shall be payable on the sixteenth day-

(i) from the date of disablement where such disablement lasts for a period of
twenty-eight days or more, or
(ii) after the expiry of a waiting period of three days from the date of disablement
where such disablement lasts for a period of less than twenty-eight days or
during a period of five years, whichever period is shorter:
In case of temporary disablement, payments equal to 25 % of the workers' wages

shall be made at fortnightly intervals (every two weeks). In case the disablement
lasts for more than 28 days, the employer should make the payment on the 16th
day from the day of the disablement.
If the period of disablement lasts for less than 28 days, the payment shall be made
after the expiry of 3 days. This wait for 3 days is to ascertain how long the
temporary disablement will last—less than/equal to 28 days or more.
**** Where the Employees’ State Insurance Act, 1948, is in force, the injured
employees or their dependents do not have the right to compensation under the
Employees’ Compensation Act. The Employees’ State Insurance Act, 1948, provides
benefits in the event both of disablement and death resulting from injury [Sec. 61 of
the ESI Act]
Compensation to be paid when due and penalty for default: -Section-4A

➢ Compensation under section 4 shall be paid as soon as it falls due.

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➢ In cases where the employer does not accept the liability for compensation
still, he will be bound to make provisional payment, and, such payment
shall be deposited with the Commissioner or made to the employee.
➢ Where any employer is in default in paying the compensation due under this
Act within one month from the date it fell due, the Commissioner shall-
• direct that the employer shall, in addition to the amount of the
arrears, pay simple interest thereon at the rate of 12% per
annum
• if, in his opinion, there is no justification for the delay, direct
that the employer, in addition to the amount of the arrears and
interest thereon, pay a further sum not exceeding 50% of
such amount by way of penalty.
Section - 5. Method of calculating wages. –
(a) where the workman has been in the service of the employer, who is liable to pay
compensation during a continuous period of not less than twelve months
immediately preceding the accident, the monthly wages of the workman shall be
one-twelfth of the total wages.
(b) where the workman was in the service of the employer who is liable to pay the
compensation was less than twelve months, the monthly wages of the workman shall
be the average monthly amount which, during the twelve months immediately
preceding the accident.
(c)in other cases including cases in which it is not possible for want of necessary
information to calculate the monthly wages, the monthly wages shall be thirty
times the total wages earned in respect of the last continuous period of service
immediately preceding the accident from the employer who is liable to pay
compensation, divided by the number of days comprising such period.
Review (Sec- 6) for Temporary Disablement

▪
In the case of temporary disablement of the workman, employer should pay the
amount as compensation for every two weeks.
If workman condition is improving, employer can make an application to the

commissioner for reduction of compensation amount payable
If the workman condition is becoming worse, with the help of the qualified medical
practitioner can make an application to commissioner for increase in compensation
amount payable for every two weeks.
If the accident is found to have resulted in permanent disablement, be converted to

the lump sum to which the workman is entitled less any amount which he has
already received by way of half-monthly payments.
Commutation of Half-Monthly Payments [Sec 7]

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In the case of temporary disablement of the workman, his compensation amount can
settlement by way of lump sum amount or can make an application to commissioner
for settlement of lump sum amount after a period of at least 6 months.
Distribution of Compensation. [Sec 8]

▪
Compensation must be paid to the dependents only. No other persons except
dependents having are right to claim compensation.
Compensation should not be paid directly to the workman by his employer in case
of injury or death etc.
Employer should deposit the workman compensation with the commissioner.
The deposited compensation to workman shall be paid through the commissioner

to the workman.
If no dependent is there for deceased (dead) workman, there is no necessity to pay

compensation by the employer.
If two or more dependents exist for a deceased workman, the compensation amount
shall be distributed by the commissioner according to his wish.
If the workman dependent is of legal disability ((a minor), or mental capacity) or

neglect of children, the compensation amount shall be invested for them according
to the directions of the commissioner.
Notice and claim: -(Sec-10)
After the occurrence of the accident to the workman, giving notice to the
employer is must.
No claim for compensation shall be entertained by a Commissioner unless notice of
the accident has been given, within two years of the occurrence of the accident
or in case of death within two years from the date of death. (Maximum Time)
Without giving notice of accident or death of the workman, claim of compensation
is not considered by the commissioner.
Every notice given to employer about the accident of the workman should
contain the following details.
a) Name of the injured workman.
b) Address of the injured workman.
c) Date on which the accident happened.
Notice should be registered post addressed.
Power to Require from Employers Statements Regarding Fatal Accidents. [Sec

10A]

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Commissioner receives information from any source about the death of the
workman or the occurrence of the accident to the workman under employment, he
is having power to send notice to employer through registered post demanding
the employer for explanation about the cause and reasons for the accident or the
death of the workman.
Within 30 days from the receipt of the notice from commissioner by the employer
has to submit all the details of the accident or the death of the workman. Employer
should mention whether he is liable to pay the compensation or not liable to pay the
compensation to the workman.
• If employer accepts the liability to pay the compensation to the workman,

employer should deposit the compensation with the commissioner within 3o
day from the receipt of the notice.
• If employer rejects the liability to the compensation to the workman,

employer should mention all details, why he is not so liable.
Reports of Fatal Accidents and Serious Bodily Injuries [Sec 10B]
After the occurrence of the accident results in death of the workman, or serious
bodily injury of the workman, employer should give notice to the authority
appointed by the state government within 7 days.
Explanation: "Serious bodily injury" means an injury which involves, the permanent
loss of the use of, or permanent injury to, any limb.
Contracting [Sec 12]
In case of contracting, the principal (person who employed the workman for
contract) or contractor (principal for the purposes of his trade or business contracts
with any other person) is liable to pay the compensation to the employed
workman who is injured.
Medical examination: -
➢ Where an employee has given notice of an accident, he shall, if the employer,
before the expiry of three days from the time at which service of the notice
has been affected offers to have him examined free of charge by a qualified
medical practitioner
➢ before the expiry of the period within which he is liable to submit himself for
medical examination, voluntarily leaves without having been so examined
the vicinity of the place in which he was employed, his right to
compensation shall be suspended until he returns and offers himself for
such examination
****In the case of the death of a master or seaman, the claim for compensation shall
be made within [one year] after the news of the death has been received by the
claimant

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Contracting Out [Sec 17]
Any contractor agreement made for give-up of compensation from the employer
in case of the accident or the death of the workman is void and not valid.
Appointment Of Commissioner. [Sec 20]

(1) The state government may, by notification in the official gazette, appoint any
person who is or has been a member of a state judicial service for a period of not
less than five years or is or has been for not less than five years an advocate or
a pleader or is or has been a gazetted officer for not less than five years having
educational qualifications and experience in personnel management, human
resource development and industrial relations
(2) Where more than one commissioner has been appointed for any area, the state
government may, by general or special order, regulate the distribution of business
between them.
(3) Every commissioner shall be deemed to be a public servant within the meaning
of the indian penal code
25A. Time limit for disposal of cases relating to compensation. - The

Commissioner shall dispose of the matter relating to compensation under this Act
within a period of three months.
Circumstances under which employer is liable to pay compensation to the
employee (Calculation):-
Compensation in case of death of employee: -
While calculating the compensation of the workman, age of the workman and
relevant factor is taken in to account.
50% of monthly wages of the deceased employee (X) relevant factor with
corresponding age of injured workman specified in Schedule IV.
or
1,20,000/- rupees of compensation.
Whichever is more.
Example: M U N I Y A P P A , A W O R K E R A G E D 35 M E E T S W I T H A N A C C I D E N T A N D
D I E S W H I L E A T W O R K ( I . E . I N T H E C O U R S E O F E M P L O Y M E N T ). A T T H E T I M E H E
D R E W A M O N T H L Y W A G E O F R S .21,500/-. A S P E R S C H E D U L E I V O F T H E A C T
T H E R E L E V A N T F A C T O R A P P L I C A B L E T O H I S C A S E W O U L D B E R S . 197.06. A S
SUCH, THE AMOUNT OF COMPENSATION PAYABLE TO HIS DEPENDANTS WILL BE
ARRIVED AT IN THE FOLLOWING WAY :
( I ) 50% O F R S . 15000= 7500

( I I ) 7500 X R E L E V A N T F A C T O R ( I . E -197.06) =
R S .14,77,950 /- ( T O T A L C O M P E N S A T I O N P A Y A B L E )

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Compensation in case of permanent total disablement [Sec 4(1) (b)]

60% of monthly wages of employee (X) relevant factor with corresponding age of
injured workman specified in Schedule IV.
or
1, 40,000/- rupees of compensation.
Whichever is more.
For above the calculation of the compensation in case of death or permanent partial
disablement, the monthly wage of workman is limited to 15000/- Rupees only. Or
the government may prescribe and change the monthly wage amount for calculation
of the compensation.
Compensation in case of permanent partial disablement [Sec 4(1) (c)]

Injury specified in Part II of Schedule I.
The calculation of the compensation is similar to that of permanent total
disablement.
Example:
Part II of schedule I
Nature of injury Percentage of loss of disablement
(1) Amputation to shoulder joint 90%
(2) Amputation to below shoulder 80%
(3) loss of fingers of one hand 50%
(24) Loss of all toes of one foot 20%
(48) part of some loss of bone 3%
Part II of schedule I contains 48 entries specifying various nature of injuries in
left-hand column and corresponding percentage of disablement.
In case of (1) Amputation to shoulder joint
90% of monthly wages of employee X relevant factor with corresponding age of
injured workman specified in Schedule IV.
or
1, 40,000/- rupees of compensation, whichever is more.
………………………………………………………………………………………………………………………………………………………….

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The Minimum Wages Act, 1948
(The Act came into force from the 15th of March 1948)
History: -
Royal Commission on Labour
The Royal Commission on Labour or the Whitley Commission on Labour was set
up in 1929 to inquire into the existing conditions of labour in industrial undertakings
and plantations in India.
The Commission was chaired by John Henry Whitley
a. Submitted report 1931 related to fixation of minimum rates of wages.
b. Recommended making investigation in respect of the fixation of minimum
rates of the wages in small industries like tanning bidi making, wool cleaning,
mica works, etc.
c. Recommended establishment of minimum wage fixing machinery and
adoption of necessary legislation in small industries.
d. Suggested setting up of a statutory wage board for fixing minimum wages
in plantation in Assam
A few labour enquiry committees like,
1. Cawnpore Labour Enquiry Committee (1937),
2. Bombay Textile Labour Enquiry Committee (1937),
3. Bihar Labour Enquiry Committee (1938),
4. C.P. and Berar Textile Labour Enquiry Committee (1946)
5. and U.P. Labour Enquiry Committee (1946)
set up by the provincial governments, also made thorough investigations in
respect of the wage levels of workers engaged in different types of industries
Rege Committee
• Labour Investigation Committee known as Rege Committee, appointed by

GOI in 1944
• Made investigation in respect of wages and earnings in industrial
employment and submitted its report.
• Reported revealed the existence of low wages in almost all industries for all
category of employee.
Fair Wage committee, 1946
• The first notable development in fixation of a minimum wage rate was the
formation of a tripartite committee named as the Committee on Fair
Wages in the year 1946, to provide guidelines for wage structures in the
country.
• The report of the Committee published in 1948 was a major landmark in

the formulation of wage policies.

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• The Committee prescribed clarification of the various concepts of wages (like
fair wage, living wage and subsistence wage), standardization of wages in
the organized sector and enactment of a minimum wage legislation
Minimum wage
• Minimum wage was proposed to be not merely paid for the bare subsistence
of a worker and should ideally include enough for the efficiency, health and
working capability of the worker.
• For this purpose, the minimum wage must also provide for some measure of
education, medical requirements and amenities.
• The Committee on Fair Wages emphasized that an industry had no right to

exist unless this minimum level of wages was paid.
Fair wage:
• Such wage was proposed to be above the minimum wage level, aiming at
living wage level. The actual wage in an industry or organisation should be
determined by factors like the capacity of an employer to pay, the
position of an industry in the economy, per capita income, etc.
• The Committee recommended that fair wage should be related with the
productivity of labour.
• The Committee further suggested that fair wage should be related with the
prevailing rates of wages.
Living wage:
• Living wage was the concept of an ideal wage.
• it represented the highest level of wage which could enable a male earner of
a family to provide for himself and his family not only the bare necessities of
food, clothing and shelter, but also a measure of comfort, education for his
children, protection against ill-health, essential social needs and
insurance against more important misfortunes, including old age.
Indian Labour Conference (ILC), held in 1957
The 15th Indian Labor Conference (ILC) in 1957 had determined the need-based
minimum wage for a single industrial worker. The norms set by the ILC had said
that it should cover all the needs of a worker’s family.
The food requirement per consumption was derived from the recommendations of
Dr. Wallace Aykroyd, the noted nutritionist of that time.
i) 3 consumption units for one earner.
(ii) Minimum food requirements of 2700 calories per average Indian adult.
(iii) Clothing requirements of 72 yards per annum per family.

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(iv) Rent corresponding to the minimum area provided for under Government’s
Industrial Housing Scheme.
(v) Fuel, Lighting and other miscellaneous items of expenditure to constitute 20%
of the total minimum wage.
Recommendations of the Second NCL(2002)
1. Minimum wage payable to any one in employment, in whatever occupation, should
be such as would satisfy the needs of the worker and his family (consisting of three
consumption units) and arrived at on the need based formula of the 15th Indian
Labour Conference supplemented by the recommendations made in the Judgement
of the Supreme Court in the Reptakos Brett & Co. case
2. There should be a national minimum wage that the central government may
notify. This minimum must be revised from time-to-time. It should, in addition,
have a component of dearness allowance to be declared 6 monthly linked to the
consumer price index and the minimum wage may be revised once in 5 years
3. Where wages are fixed purely on piece-rate basis, the employer should pay at least
75 per cent of the notified time-rate wages to the piece-rated worker.
4. There is no need for any wage board, statutory or otherwise, for fixing wage rates
for workers in any industry
Wage Boards
1. The concept of industry-level Wage Boards a non-statutory measure of
settlement of industrial disputes.
2. The first Wage Board in India was set up for the cotton textile industry in
1957.
3. Wage Boards in India we can see that as early as 1931 the Whitley
Commission on Labour had recommended the setting up of a Wage Board
for the determination of wages in lines with concern of the ILO
4. First Five Year Plan also drew a scheme for permanent wage boards to be set
up in each State with a tripartite composition and dealt with at the level of
the Central Government.
5. Finally the Wage Board system was introduced in March, 1957; the very first
of its kind was set up for the cotton textile industry in the name of Central
Wage Board.
Constitution of Wage Board
1. A Wage Board is tripartite by structure, consisting of a chairperson, an equal
number of representatives of employers and employees (two members each)
and two other independent members (an economist and a consumers’
representative) nominated to the Board.

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2. The Chairman is appointed by the appropriate Government in consultation
with the Chief Justice of the High Court concerned or the Supreme Court
of India.
3. Any person who is or has been eligible to be appointed as a Judge of a High
Court shall be qualified for appointment as the Chairman.
4. Usually, a Member of Parliament is nominated to represent consumers.
5. The appropriate Government appoints workers’ and employers’
representatives on the recommendations of the most representative
workers’ and employers’ organizations respectively in the sector concerned.
Functions of Wage Board
A Wage Board adjudicates industrial disputes referred to it with the assistance
of independent members.
As per the First National Commission on Labour (1969), a Wage Board serves
as an effective machinery for determination of wages, and for this purpose
it attempts to fix wages within the broad framework of the Government’s
economic and social policy.
It is required to work out a wage structure based on the principles of fair
wages formulated by the Committee on Fair Wages
In addition to the considerations relating to fair wages, a Wage Board must
take into account the following aspects: the needs of the industry in a
developing economy, the system of payment by results, the special
characteristics of the industry in various regions and areas, the
categories of workers to be covered (this may be according to the
definition in the Industrial Disputes Act, 1947), and the working hours
in the industry
The Minimum Wages Bill, 1946
• The question of the fixation of minimum rates of wages was considered by the
Standing Labour Committee and the fifth session of the Indian Labour
Conference in 1943.
• The Government of India introduced the Minimum Wages Bill in the

Legislative Assembly in 1946, which was passed on 9 February 1948.
• The Act came into force from the 15th of March of the same year. The Act
was amended several times since its enactment in 1948.
• The bill provides for fixation by Provincial Governments of minimum wages for
employments covered by Schedule of the Bill.
• Provisions have been made for appointment of Advisory Committees and

advisory boards, the latter for coordination work of the advisory committees.
• procedure has been provided for recovery of the balance with penalty and
subsequent prosecution of the offending party

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• a provision has been included that the minimum wages fixed by a Provincial
Government will not apply to employees of a federal railway, except with the
consent of the Central Government.
INTERNATIONAL LABOUR ORGANISATION

1. ILO adopted Convention and recommendation related to minimum wage fixing
machinery.
2. The Minimum Wage fixing Machinery Convention (No.26), 1928 : Provide
creation of machinery
3. India ratified Minimum Wage fixing Machinery Convention (No.26), 1928
in 1955, after the enactment of Minimum wages Act, 1948
4. The Minimum wage fixing machinery Recommendation(No.30), 1928:
Machinery to investigate conditions
5. The minimum wage fixing machinery (Agriculture) Convention(No. 99),1951
6. The Minimum wage fixing machinery Recommendation(No.89), 1951
7. The Minimum wage fixing machinery Convention (No.131), 1970
Introduction
1. The Minimum wages Act, 1948 is the First Labour legislation in the India
dealing with fixation of minimum rates of wages for workers employed in
different sweated employment including agriculture.
2. Sweated Employment: Means to work under unhealthy conditions, for long
hours, for low wages.
3. An Act to provide for fixing minimum rates of wages in certain employments
4. Article 43 of Indian Constitution: The State to strive to secure work to the
worker, a living wage, conditions of work ensuring a decent standard of life
and full enjoyment of leisure and social and cultural opportunities
5. It is welfare measure to remove suffering of society, achieve social justice,
prescribe minimum wages.
6. It extends to the whole of India
7. Came into force on 15th March 1948.
Scope
The Act empowers the central and the state governments, to fix minimum rates of
wages in respect of workers employed in the following industries or employments
listed in the Schedule of the Act, which contains Parts I and II. (Industry related) are

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covered under part-I and (Agriculture related) Scheduled employments under part-II
of the Act.
Objective: -The main objectives:
1. Prevention of extra hard work, toil and poverty arising from unduly low wages.
2. Fixation of just and fair wages for preventing industrial disputes.
3. Control of inflationary pressures.
4. Raising purchasing power with a view to speeding up the pace of economic
recovery.
5. Wage regulation as a part of a national-income distribution policy and
programmes of planned economic development
Definitions: -
• Child- means a person who has not completed his fourteenth year of age
• Adolescent- means a person who has completed his fourteenth year of age
but has not completed his eighteenth year.
• Adult- means a person who has completed his eighteenth year of age
• Cost of living index number- means the cost-of-living index number
applicable to employees in such employment.
Fixation of Minimum Rates of Wages: -(Sec-3)
➢ The Act empowers the appropriate government—central and state
governments—in respect of employments in their respective jurisdictions, to
fix minimum rates of wages for
• time-work
• piece-work
• guaranteed time-rate (to apply in the case of employees employed on
piece-work) and
• minimum rate of wages for overtime work.
**** Different minimum rates of wages may be fixed for different scheduled
employments, different classes of work in the same scheduled employment,
adults, adolescents, children and apprentices, and for different localities.
****The rates may also be fixed by the hour, by the day, By the Month.
Any minimum rate of wages fixed or revised by the appropriate government may
consist of:
(i) a basic wage rate and a cost-of-living allowance
(ii) a basic rate with or without the cost-of-living allowance and the cash
equivalent of the concession, in respect of supplies of essential
commodities, at concession rates
(iii) an all-inclusive rate allowing for the basic rate, cost of living allowances
and the cash value of the concession.

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The appropriate government may, refrain from fixing minimum rates of wages
in respect of any scheduled employment in which there are, less than 1000
employees engaged in such employment.
Procedures for Fixing Minimum Rates of Wages-(Sec-5)

The Act provides for two distinct procedures for the fixation of minimum rates of
wages.
1. Under the first, the appropriate government may appoint a committee, and
sub-committees for different areas (for assisting the committee in its
deliberations) to hold enquiries, and to advise on the question of wage-fixation.
On receipt of the recommendations of the committee, the appropriate

government is required to fix minimum rates of wages in respect of the
employment concerned, by making notification in the official gazette.
2. Under the second procedure the appropriate government may by notification

in the official gazette, publish its own proposals of minimum rates of wages
for information of persons likely to be affected and specify a date, not less
than two months from the date of notification, on which the proposals will
be taken into consideration.
****The minimum rates of wages fixed under either of the procedures are to come
into force on the expiry of three months from the date of notification.
➢ Advisory Boards-(Sec-7)
The central and the state governments are required to appoint advisory boards for
coordinating the work of committees and sub-committees and advising the
government generally in the matter of fixing and revising minimum rates of wages.
The Advisory Board is also to consist of equal number of representatives of the
employers and employees, and independent persons not exceeding one-third of
the total number of members—all nominated by the central or state government
➢ Central Advisory Board-Sec-8) The central government is required to appoint
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 and other relevant matters under the Act and for coordinating the
work of the advisory boards.
➢ The central advisory board is to consist of an equal number of

representatives of employers and employees, and independent persons
not exceeding one-third of the total number of members—all nominated
by the central government. One of the independent members will be
appointed as the chairman

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Revision of Minimum Rates of Wages: -The minimum rates of wages fixed under
the Act are generally to be revised at a maximum interval of five years.
The process of revision of minimum rates of wages in the respective Scheduled
Employments is being taken up for every 5 years against the Scheduled
Employments where the VDA component is a part of wages and for every two years,
where the VDA is not incorporated.
(Sec 20)-Claims-
• The appropriate Government may, by notification in the Official Gazette,

appoint
• Any Commissioner for Workmen's Compensation or any officer of the Central
Government exercising functions as a Labour Commissioner for any region
• Any officer of the State Government not below the rank of Labour
Commissioner
• 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 payment of less than the minimum rates of wages the
employee himself, or any legal practitioner or any official of a registered
trade union, or any Inspector, or any person acting with the permission of
the Authority can make application
• Application shall be presented within six months from the date on which the
minimum wages were payable
****Indian Labour conference for fixation of Wage has directed that keeping in view
the Socio-economic aspect “25% of the Total minimum wages shall also be taken
into account for Children education, medical requirement, minimum recreation
including festivals/ceremonies and provision for old age, marriage etc.
For Revision-
****Every employer shall, on or before the 1st day of February in each year, upload
unified annual return in Form III on the web portal of the Central Government in
the Ministry of Labour and Employment
****The Labour Investigation Committee known as Rege Committee, appointed by
the Government of India in 1944, also made investigations in respect of wages and
earnings in industrial employments and submitted a main report.
****The international labour organization also adopted conventions and
recommendations relating to minimum wage fixing machinery.
The Minimum Wage Fixing Machinery Convention (No. 26), 1928, provides for the
creation of wage-fixing machinery in certain trades. The convention requires
consultation with representatives of employers and workers, before such machinery
is applied in trade. The minimum wages fixed by the machinery are to be binding on
employers and workers.

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India ratified the convention in 1955, after the enactment of the Minimum Wages
Act, 1948. The Minimum Wage Fixing Machinery Recommendation (No. 30), 1928,
requires such a machinery to investigate into the conditions relevant to the trades
and to consult the affected interests before fixing minimum wages.
****Sweating: -Sweating generally means to work under unhealthy conditions, for
long hours, or at excessive high speed and for low wages. It also involves taking
advantage of the weak position of workers who are unskilled and unorganized.
****In 1948, under the act a tripartite committee “The Tripartite Committee of Fair
Wage” was appointed to set definitions and guidelines for formulating a wage
structure in India. The committee defined- The minimum wage must be provided
not merely for the bare subsentence of life but also for the preservation of
efficiency of the workers by providing for some measures of education, medical
requirement and amenities.
****The Commissioner of Labour notifies the increase of average Consumer Price
Index Numbers on 1st April and 1st October every year taking into account and
minimum wages are revised accordingly.
**** Wage Board Wage Board is a tripartite body, having representation of the
employers and labour besides, independent members.
The representatives of the former two interests are nominated by their central
organizations; others are nominated by the Government. It is an important
machinery of State regulation of wage.
…………………………………………………………………………………………………………………………………………………………
The Payment of Wages Act, 1936

Payment of wages legislation in India has been patterned after the Truck Acts 1831
of Great Britain.
**** Truck System Widely prevalent in England prior to the enactment of Truck Act,
1831, the system involved remunerating the workers in kind or in any other way,
but not in money. In its early form, the practice was characterized by paying the
workers a share of what they helped to produce. With the rise of the manufacturing
industry, many companies started paying their workers in full or in part with
tokens which were exchangeable at the company stores, often at highly inflated
prices.
This act was formed to eliminate the practices of Truck System.
**** Common Law A system of laws, especially in England and extended to its
colonies, that have been developed from customs and from decisions made by judges,
not created by Parliament

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Statutory Law: -are those made by the government of a country. The government
has a clear role in determining the laws and punishment that are appropriate for
their country.
****Payment of wages: -Bank A/c(as per order of Appropriate Gov.)
****On the recommendation of Royal Commission on Labour the Payment of Wages
Act, 1936 was enacted.
The Act applies!!! Where???

1. Persons employed in any factory.
2. Persons employed in any railway or directly or through a contractor and
subcontractor.
3. Persons employed in any of the following industrial or other establishments:
(a) Tramway service or motor transport service engaged in carrying passengers or
goods or both by road for hire or reward
(b) Air transport service other than such service belonging to the military, naval
or air forces of the union or the civil aviation department of the government of India
(c) Dock, wharf or jetty
(d) Inland vessel, mechanically propelled
(e) Mine, quarry or oil-field
(f) Plantation
(g) Workshop or other establishment in which articles are produced, adapted or
manufactured, with a view to their use, transport or sale
(h) 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 distribution of electricity or any other form of power is
being carried on (Building and other construction)
OR
Appropriate Government may, after giving three months’ notice, extend the
provisions of this Act to any class of persons employed in any establishment.
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 24,000 rupees
➢ The appropriate government in relation to railways, air transport services,
mines and oilfields is the central government, and in relation to all other
cases, the state government.

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****Definition of Wages: Section 2(vi) - The term ‘wages’ has been defined as all
remuneration (whether by way of salary, allowances or otherwise) expressed in
terms of money or capable of being so expressed, if the terms of employment,
were fulfilled, be payable to a person employed in respect of his employment or of
work done in such employment, and includes the following:
1. Any remuneration payable under any award or settlement between the parties
or order of a court.
2. Any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period.
3. Any additional remuneration payable under the terms of employment (whether
called a bonus or by any other name).
4. Any sum which by reason of the termination of employment of the person
employed.
5. Any sum to which the person employed is entitled under any scheme framed
under any law for the time being in force.
The following do not come under the definition of wages:
1. Any bonus (whether under a scheme of profit-sharing) 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.
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.
6. Any gratuity payable on the termination of employment.
**** Workmen whose services are terminated in consequence of a transfer of an
undertaking, whether by agreement or by operation of law, have a statutory right
under S. 25 FF of the Industrial Disputes Act to compensation. The same is the
position in the case of closure under S. 25FFF. Such compensation would be
“wages” as defined by Payment of Wages Act as amended by Act 68 of 1957.
Responsibility for payment of wages

➢ Every employer is responsible for payment of wages to persons employed by
him.
➢ The manager of a factory is responsible for such payment in case of persons
employed in the factory (otherwise than by a contractor).

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➢ In case of a contractor, a person designated by such contractor who is
directly under his charge, and in any other case, the person designated by the
employer are responsible for wage payment [Sec.3].
Fixation of Wages Period: -The person responsible for payment of wages has to fix
wage periods in respect of which wages are payable, but no wage period is to exceed
one month. That means wage can be paid on daily, weekly, fortnightly (for every
15 days) and monthly only [Sec.4]
• wages cannot be paid for quarterly, half yearly or once in a year

Time of Payment of Wages: -
➢ The wages of every person employed in any railway, factory or industrial or
other establishment upon or in which less than one thousand persons are
employed will have to be paid before the expiry of the seventh day after the
last day of the wage period
➢ Where one thousand or more persons are employed, wages are to be paid
before the expiry of the 10th day after the last day of the wage period.
➢ However, in the case of persons employed on a dock, wharf or jetty or in a
mine, balance of wages found due on completion of the final tonnage account
of the ship or wagons loaded or unloaded, will have to be paid before
the expiry of the seventh day from the day of such completion.
➢ In case the employment of any person is terminated by the employer, the
wages will have to be paid before the expiry of the second working day from
the day on which his employment is terminated.
➢ Where the employment of any person in an establishment is terminated due
to the closure of the establishment for any reason other than the weekly or
other recognized holiday, the wages will have to be paid before the expiry of
the second day on which employment is so terminated. Every such payment
is to be made on a working day. [Sec.5]
****Wages to be paid in (2017 Amendment): - All wages shall be paid in
• Current Coin
• Currency Notes
• Cheque/Bank transfer. Sec-6
Deductions Which may be Made from Wages Sec-7
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
workers voluntarily remain absent; the Management would be at liberty to

deduct their wages for their absence

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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%.
Permissible or Authorized Deductions: -

The Act requires the payment of wages free from any deductions except those
authorized under it. The permissible deductions under the Act are discussed below.
1. Deductions for Fines:(Section-8) Deductions with respect to fines are authorized
under the Act but several conditions have to be fulfilled before they are made.
• Fine can be imposed on any employed person only when it has approval of
state Government.
• No fine is to be imposed on any employed person until he has been given an
opportunity to show cause against the fine.
• No fine is to be imposed on any person who has not attained 15th year of
age.
• The total amount of fine which may be imposed in any one wage period on any
employed person is not to exceed three per cent of the wages payable to them
in respect of that wage period.
• Fine imposed on any employed person is not recoverable from them by
instalments or after the expiry of 90 days from the day on which it was
imposed.
• All fines and realizations have to be recorded in a prescribed register.
• 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.
• All fines collected from the employee should be credited to common fund and
utilize for the benefit of the employees.
2. Deductions for Absence from Duty: (Sec-9)
• The Act also authorizes deductions with respect to absence from duty. Such
deductions can be made only on account of the absence of an employed person
from the place or places where he is required to work in accordance with the
terms of his employment.
• The amount of such deduction is not to exceed the wage for the actual period
of unauthorized absence. If 10 or more persons acting in concert, absent
themselves without due notice and without reasonable cause, such a
deduction for absence from duty may include such amount not exceeding
their wages for 8 days as may by any such terms be due to the employer in
lieu of the notice as required under the terms of contract of employment.

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• An employed person is 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 unreasonable cause to carry out his work.
3. Deductions for Damage or Loss: (Sec-10)
• 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.
• However, the amount of such deduction is not to exceed the amount of
the damage or loss caused to the employer.
• Such a deduction is not to be made until the employed person has been
given an opportunity of showing cause against the deduction.
4. Deductions for House Accommodation and Services Rendered: Deductions
may also be made for house accommodation supplied by the employer and for such
amenities and services supplied by the employer as the state government may
authorize.
5. Deductions for Recovery of Advances or for Adjustment of Over-payment for
Wages:(Sec-12) Deductions for recovery of advances or for adjustment of over-
payments of wages are also permissible under the Act. ****no deduction is to be made
for advances for travelling expenses.
6. Deductions for Recovery of Loans: (Sec-12A) The Act authorizes deductions for
recovery of loans made from any fund constituted for the welfare of labour.
7. Deductions of Income Tax: payable by the employed person.
8. Deductions Required to be Made by the Order of a Court.
9. Deductions for Subscription to and for Repayment of Advances: from any
provident fund to which the Provident Funds Act, 1925
10. Deductions for Payments to Cooperative Societies and Insurance Scheme
11. Deductions, on 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
12. Deductions, on 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, for the welfare of the employed persons
or the members of their families or both and approved by the state government.
Inspector(Sec-14)-
Claims: -(Sec-15)
The appropriate government is empowered to appoint authorities to hear and decide
claims arising out of deductions from wages or delay in payment of wages including
incidental matters. The authorities who may be appointed for the purpose include:

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(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.
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.
Application in this regard may be made by the person himself or any legal
practitioner or any official of a registered trade union authorized in writing to act
on his behalf or an inspector appointed under the Act or any other person with the
permission of the authority.
Such an application has to be made within 12 months from the date on which the
deduction from wages was made or from the date on which the payment of wages
was due to be made.
Applications may be admitted after the expiry of the above period of 12 months if the
applicant satisfies the authority that he had sufficient cause for not making the
application within such a period
Appeal: - (Sec: -17)
In the following situation the parties who ever dissatisfied can appeal to the district
court
▪
▪ If the application dismissed by above authorities (Under Sec-
15)
▪ 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.

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An appeal against the decision of an authority, appointed under the Act may be made
within ****30 days before the Court of Small Causes in a presidency town and before
the District Court in other cases.
**** Deduction of Wages for Go-slow/Strike:-(Read it, very import Interview

Q.) There cannot be two opinions that go-slow is a serious misconduct being a covert
and a more damaging breach of the contract of employment.
It is an insidious method of undermining discipline and, at the same time, a crude
device to defy the norms of work. It has been roundly condemned as an industrial
action and has not been recognised as a legitimate weapon of the workmen to redress
their grievances.
In fact, the model standing orders as well as the certified standing orders of most
of the Industrial establishments define it as a misconduct and provide for a
disciplinary action for it. Hence, once it is proved, those guilty of it have to face the
consequences which may include deduction of wages and even dismissal from
service.
The simplistic method of deducting uniform percentage of wages from the wages of
all workmen, calculated on the basis of the percentage fall in production compared
to the normal or average production, may not always be equitable.
It is, therefore, necessary that in all cases where the factum of go-slow and/or the
extent of the loss of production on account of it, is disputed, there should be a proper
inquiry on charges which furnish particulars of the go-slow and the loss of
production on that account.
The rules of natural justice require it, and whether they have been followed or not
will depend on the facts of each case. Even in a case where action is resorted to on a
mass-scale, some employees may not be a party to the action and may have genuinely
desired to discharge their duties but could not do so for failure of the management
to give the necessary assistance or protection or on account of other circumstances.
The management will not be justified in deducting wages of such employees without
holding an inquiry.
****Total Amount of Deductions The total amount of deductions in any wage period
is not to exceed 75 per cent of wages in cases where such deductions made for
payments to cooperative societies and 50 per cent in other cases.
Penalties: -
1. Non-payment of wages in time (except contravention relating to payment on a
working day) [Sec.5], or making unauthorized deductions from wages [Sec.7] or
imposing fines in contravention of the provisions of the Act [Sec.8] is punishable
with fine not less than 1,500 and which may extend to 7,500.

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2. Failure or refusal to maintain required records or registers or to furnish
required information or return or giving false information is also punishable with
fine from 1,500 to 7,500.
3. Wilfully obstructing an inspector in the discharge of his duties or refusing or
neglecting to afford him facilities of inspection, inquiry and so on, or to produce the
required register or document or preventing any person from appearing before an
inspector is punishable with a maximum fine of 7,500 but a minimum of 1,500.
4. Contravention of the provisions relating to fixation of wage periods [Sec.4] or
failure to make payment of wages on a working day [Sec.5(4)] or non-payment of
wages crediting in bank account on the employee’s authorization [Sec.6] or non-
maintenance of register for recording fines [Sec.8(8)] or deductions for damage or
loss or non-display of abstracts of the Act [Sec.25] is punishable with fine which
may extend to 3,750.
5. If a person repeats an offence involving contravention of the same provision,
imprisonment for a term not less than 1 month but not more than six months
and with fine which is not to be less than 3,750 but not more than 22,500.
6. Failure or neglecting to pay wages by the date fixed by the authority is
punishable with an additional fine which may extend to 750 for each day of
default.
7. Failure of the employer to nominate or designate a person with regard to
responsibility for wage payment [Sec.3] is punishable with fine of 3,000.
(Sec 25 A)-Payment of undisbursed wages in cases of death of employed

person-
- be paid to the person nominated by him
-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.
**** Recommendations of The Second NCL (2002) The second National
Commission on Labour (2002) has recommended enactment of an integrated
wages legislation covering such areas as fixation and revision of minimum wages,
mode and manner of wage payment, and bonus. The Commission has also
suggested the appointment of recovery officers under the Act, as has been done
under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
**** Payment of undisbursed wages in case of death of employed person
• all amounts payable to an employed person as wages, if such amounts could

not or cannot be paid on account of his death. It will be paid to-
(a) be paid to the person nominated by him in this behalf or
(b) where no such nomination has been made, be deposited with the prescribed
authority.

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The Contract Labour (Regulation and Abolition) Act, 1970
Objective of CLRA-
❖ This Act is to regulate and abolish the employment of contract labour in
certain establishment.
To whom the Act applies
❖ The Act applies to every establishment in which 20 or more workmen are

employed or were employed on any day of the preceding 12 months.
❖ The establishments in which intermittent or casual work is performed do
not come within the purview of the Act.
❖ However, an establishment wherein work is performed for 120 days or more
in the preceding 12 months or more than 60 days in a year on work of a
seasonal character will not be deemed as carrying out the work of
intermittent nature.
❖ Appropriate Government may give two months' notice, to apply the
provisions of this Act to any establishment or contractor employing less than
20.
It shall not apply to establishments in which work only of an intermittent or

casual nature is performed.
Who will decide whether intermittent nature or not???
Appropriate government board will decide, and decision will be final.
❖ The work performed in an establishment shall not be deemed to be of an

intermittent nature-
if it was performed for more than one hundred and twenty days
in the preceding twelve months, or
if it is of a seasonal character and is performed for more than sixty
days in a year.
Prohibition on Employment of Contract Labour
❖ The Central and the State Government can prohibit employment of contract
labour in any process, operation or other work in any establishment
❖ After considering the conditions of work and benefits provided for the contract
labour in that establishment
❖ other relevant factors include: -
✓ is incidental to, or necessary for the industry, trade,

business, manufacture or occupation that is carried on in
the establishment:
✓ is of perennial or perpetual nature of sufficient duration

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✓ is done ordinarily through regular workmen in that establishment or
an establishment similar thereto
✓ is sufficient to employ considerable number of wholetime workmen.
Appropriate Government means-
Central Government in relation to –
❖ any Railway, Cantonment Board, Major Port, Mines, Oil-field, Any

establishment of a banking or insurance company
❖ 51% or more stake of central government
❖ Organisation formed by central Law
In relation to any other establishment the Government of State in which the

establishment is situated.
Contract Labour Sec-2(b)- A workman shall be employed as "contract labour”

in connection with the work of an establishment when he is hired in
connection with such work by or through a contractor, with or without the
knowledge of the principal employer
Contractor Sec-2(c)-A person who undertakes to produce a given result for

the establishment, through contract labour or who supplies contract
labour for any work of the establishment and includes a sub-contractor
✓ other than a mere supply of goods or articles of manufacture

to such establishment
Establishment Sec-2(e) means-
✓ any office or department of the Government or a local

authority, or
✓ any place where any industry, trade, business, manufacture
or occupation is carried on;
Principal employer- Sec-2(g)
✓ Head of Department of the factory, establishment, office.

✓ Owner or Occupier or Manager of the factory/mine
Workman- means any person employed in connection with the work of any
establishment to do any skilled, semi-skilled or un-skilled manual, supervisory,
technical or clerical work for hire or reward, but does not include any such
person-

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✓ who is employed mainly in a managerial or administrative capacity (nature
of Job)
✓ who, being employed in a supervisory capacity draws wages exceeding five
hundred rupees per mensem, 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
who is an out-worker?
✓ A person to whom any articles or materials are given out by
or on behalf of the principal employer to be made up, cleaned,
washed, altered, ornamented, finished, repaired, adapted or
processed for sale for the purposes of the trade or business of
the principal employer and
✓ 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 the principal employer.
Core activity of an establishment- means any activity for which the
establishment is set up and includes any activity which is essential or
necessary to the core activity
Part-II
Central Advisory Contract Labour Board Sec-3-The Central Board shall

consist of-
✓ a chairman to be appointed by the Central Government.
✓ the Chief Labour Commissioner (Central), ex-officio.
✓ such number of members, not exceeding 17 but not less than
11, as the Central Government may nominate to represent that
Government, the Railways, the coal industry, the mining
industry, the contractors, the workmen and any other interests
which, in the opinion of the Central Government, ought to be
represented on the Central Board.
State Board shall consist of-Sec-4
✓ a chairman to be appointed by the State Government
✓ the Labour Commissioner, ex officio, or in his absence any other
officer nominated by the State Government in that behalf
✓ such number of members, not exceeding 11 but not less than 9,
as the State Government may nominate to represent that
Government, the industry, the contractors, the workmen and any
other interests which, in the opinion of the State Government,
ought to be represented on the State Board.
Part-III
REGISTRATION OF ESTABLISHMENTS EMPLOYING
CONTRACT LABOUR

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Appointment of registering officers-Sec-6
✓ Gazetted Officer of government.
✓ Every principal employer of an establishment to which this
Act applies shall, make an application to the registering
officer for registration of the establishment.
✓ If the application for registration is complete in all respects,
the registering officer shall register the establishment and
issue a certificate of registration.
Registration of Establishment Sec-7: -Principal Employer employing 20 or
more workers through the contractor or the contractor on deposit of required
fee in Form-1
Prohibition of employment of Contract Labour- Sec-10

✓ The appropriate Government may after consultation with the
Central Advisory Board or the State Advisory Board, may be,
prohibit by notification in the Official Gazette employment of
contract labour in any process, operation or other work in any
establishment.
✓ Before issuing such notification, the appropriate Government
shall examine the conditions of work and benefits provided
for the contract labour in that establishment and other
relevant factors.
****Andhra Pradesh hight court judgment -The principal employer may engage
contract labour or a contractor to any core activity if-
✓ the normal functioning of the establishments is such that the activity is

ordinarily done through contractors or
✓ the activities are such that they do not require full time workers for the major
portion of the working hours in a day or for longer periods, as the case may
be
✓ any sudden increase of volume of work in the core activity which needs to be
accomplished in a specified time.
Part-IV
Licensing of Contractors
Sec 11-Appointment of licensing officers-

• The appropriate Government may appoint
• persons, being Gazetted Officers of Government, as it thinks fit to be
licensing officers
• define the limits, within which a licensing officer shall exercise the
powers
Sec 12-Licensing of contractors-

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• No contractor execute any work through contract Labour except under and in
accordance with a licence issued in that behalf by the licensing officer.
• A licence under may contain such conditions including, in particular,
conditions as to hours of work, fixation of wages and other essential
amenities in respect of contract Labour Issued on payment of such fees and
on the deposit of security.
Sec 13-Grant of licenses-Every application for the grant of a license shall be made
in the prescribed form
• contain the particulars regarding the location of the establishment, the
nature of process, operation or work for which contract Labour is to
be employed and such other particulars as may be prescribed.
• The licensing officer may make investigation and follow procedure.A license
granted shall be valid for the period and may be renewed from time to time for
such period and on payment of such fees
Sec 14-Revocation, suspension and amendment of licenses
• obtained by misrepresentation or suppression of any material fact.
• the holder of a licence has, without reasonable cause, failed to comply with
the conditions subject to which the licence has been granted or has
contravened any of the provision
• the licensing officer may, after giving the holder of the license an opportunity
of showing cause revoke or suspend the license
Sec 15-Appeal-
• within 30 days from the date on which the order is communicated to him,
prefer an appeal to an appellate officer who shall be a person nominated in
this behalf by the appropriate Government
• appellate officer may entertain the appeal after the expiry, by sufficient
cause from filing the appeal in time.
Licensing of contractors -
✓ No contractor to whom this Act applied shall undertake or execute any work
through contract labour except under and in accordance with a licence
issued in that behalf by the Licensing Officer.
✓ Every contractor to whom the Act applies has to obtain a licence from the
Licensing Officer of the area in which the establishment is located
✓ The certificate of licence contains the following information: -
• That licence shall be non-transferable
• That the maximum number of workmen that can be
employed as contract labour in that establishment along
with other particulars such as rates of wages payable,

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hours of work and other service conditions of the
workmen
The licence is valid for 12 months
Part-V
WELFARE AND HEALTH OF CONTRACT LABOUR(Sec-16&17)
Welfare and health of contract labour- It is the responsibility of the

contractor to provide canteen, rest shelter, drinking water, latrines,
urinals, washing facilities and first - aid boxes.
✓ Canteen- Where employment of contract Labour is likely to continue for six
months and the number of contract labour employed is 100 or more, an
adequate canteen must be set up.
✓ Rest Room -Wherever employment of contract labour is likely to continue for
3 months or more and contract labour is required to halt at night, restrooms
are to be maintained and that must made available within 15 days
✓ Drinking water(health provision)- Wholesome drinking water shall be
supplied at convenient places. In case of new establishments within 7 days
of the commencement of the employment of contract labour.
✓ Washing facilities -Adequate and suitable facilities for washing be provided
✓ Urinals and latrines-
• Where females are employed, at least one latrine for every 25
females
• Where males are employed, at least one latrine for every 25
males.
• Where the number of males or females exceeds 100, one for every
50 thereafter.
✓ First-aid facilities-First-aid boxes at the rate of not less than one box for
every 150-contract labour or part thereof should be maintained and shall be
readily accessible during all working hours.
Responsibility for payment of wages -Sec-21
✓ A contractor shall be responsible for payment of wages and such wages shall
be paid before the expiry of 7th day of the month (in case less than1000), 10th
of the month in rest case.
✓ Every principal employer shall nominate a representative duly authorised
by him to be present at the time of disbursement of wages by the contractor
and it shall be the duty of such representative to certify the amounts paid as
wages.
✓ It shall be the duty of the contractor to ensure the disbursement of wages in
the presence of the authorised representative of the principal employer.
✓ In case the contractor fails to make payment of wages within the prescribed
period or makes short payment, then the principal employer shall be liable
to make payment of wages in full or the unpaid balance due, as the case may

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be, to the contract labour employed by the contractor and recover the
amount so paid from the contractor either by deduction from any amount
payable to the contractor under any contract.
****Obstructs an inspector in the discharge of his duties shall be punishable

with imprisonment for a term which may extend to three months, or with fine
which may extend to five hundred rupees.
The contractor shall maintain the following registers in English or in Hindi
(a) Muster Roll
(b) Register of Wages
(c) Register of Deductions
(d) Register of Overtime
(e) Register of Fines
(f) Register of Advances.
**** In case the contractor fails to make payment of wages within time, or
makes short payment, then the Principal Employer shall be liable to make
payment of wages in full or the unpaid balance due.
Direct Absorption of Contract Labour (Judgment)

❖ Persons who get displaced, on the expiry of the contract/licence period, do not
get any statutory right for absorption in regular service under the employer.
❖ Non-registration under section 7, by the principal employer or the contractor

not having a license u/s 12 are not that the workmen could be automatically
deemed to be treated as the employees of the principal employer.
Register of Contractor-
1.Principal Employer-To maintain a register of contractors in respect of every
establishment in Form XII.
2.Contractor-
• To maintain register of workers for each registered establishment in
Form XIII.
• To issue an employment card to each worker in Form XIV.
• To issue serve certificate to every workman on his termination in Form
XV.
• Maintain Muster Roll and a register of wages in Form XVI and Form
XVII respectively when combined.
• Maintain a Register of Deduction for damage or loss, Register of Fines,
and Register of Advances in Form XX, XXI and XXII respectively.
• Maintain a register of Overtime in Form XXIII
• Wage Slip in Form XIX.

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Returns: -Contractor to send half yearly return in Form XXIV in duplicate

within 30 days. Principal Employer to send Annual Return in Form XXV in
duplicate before 15th Feb, following the end of the concerned year.
………………………………………………………………………………………………….
THE BUILDING AND OTHER CONSTRUCTION WORKERS’ (REGULATION OF

EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996
Objective: - An Act to regulate the employment and conditions of service of building
and other construction workers and to provide for their safety, health and welfare
measures and for any other matters connected.
Where it applies-
10 or more building workers in any building or other construction work on any day
of the preceding twelve months.
****Public Sector Undertaking means any corporation established by or under any
Central, State or Provincial Act or a Government company as defined in section 617
of the Companies Act, 1956 which is owned, controlled or managed by the Central
Government.
Building or other construction work means the construction, alteration, repairs,

maintenance or demolition, of or, in relation to, buildings, streets, roads, railways,
J tramways, airfields, irrigation, drainage, embankment and navigation works, flood
U control works (including storm water drainage works), generation, transmission and
S distribution of power, water works (including channels for distribution of water), oil
T and gas installations, electric lines, wireless, radio, television, telephone, telegraph
R and overseas communications, dams, canals, reservoirs, watercourses, tunnels,
E bridges, pipelines, towers, cooling towers, transmission towers and such other work
A as may be specified in this behalf by the appropriate Government, by notification but
D does not include any building or other construction work to which the
provisions of the Factories Act, 1948 or the Mines Act, 1952
Building worker- means a person who is employed to do any skilled, semi-skilled

or unskilled, manual, supervisory, technical or clerical work for hire or reward,
whether the terms of employment be expressed or implied, in connection with any
building or other construction work but does not include any such person—
(i) who is employed mainly in a managerial or administrative capacity or
(ii) who, being employed in a supervisory capacity, draws wages exceeding
1600/- rupees per mensem or exercises, either by the nature of the duties

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attached to the office or by reason of the powers vested in him, functions
mainly of a managerial nature.
Central Advisory Committee: - The Central Advisory Committee shall consist of—
(a) a Chairperson to be appointed by the Central Government
(b) 03 Members of Parliament of whom 02 shall be elected by the House of the
People and 01 by the Council of States—members
(c) the Director-General—member, ex-officio
(d) such number of other members, not exceeding 13 but not less than 09, as the
Central Government may nominate to represent the employers, building workers,
associations or architects, engineers, accident insurance institutions and any other
interests which, in the opinion of the Central Government, ought to be represented
on the Central Advisory Committee.
**** The Chairperson of the Central Advisory Committee shall hold office as such for
a period of 03 years.
The Central Advisory Committee shall meet at such places and at such times as may
be decided by the Chairperson of such Committee and it shall meet at least once in
six months.
No business shall be transacted at any meeting of the Central Advisory Committee
unless at least six members of such Committee are present in that meeting which
shall include at least one member of Parliament
State Advisory Committee: - The State Advisory Committee shall consist of—
(a) a Chairperson to be appointed by the State Government
(b) 02 members of the State Legislature to be elected from the State Legislature—
members
(c) a member to be nominated by the Central Government
(d) the Chief Inspector—member, ex-officio
(e) such number of other members, not exceeding 11, but not less than 07, as the
State Government may nominate to represent the employers, building workers,
associations of architects, engineers, accident insurance institutions and any other
interests which, in the opinion of the State Government, ought to be represented on
the State Advisory Committee.
Expert committees: - Advise that Government for making rules under this Act
(BOCW experience)
REGISTRATION OF ESTABLISHMENTS

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Registering Officers: - Gazetted Officers of Government, and works within defined
jurisdictional area
Registration of Establishments: -(Sec-7)
(1) Every employer shall register the establishment within 60 days on its
commencement and the particulars regarding any change in later stage shall
be intimated by the employer to the registering officer within thirty days of
such change.
(2) An employer shall, at least 30 days before the commencement of any building
or other construction work, send notice to the inspector about
commencement of work.
(3) If the registering officer is satisfied registration can be revoked, and employer
may appeal within 30 days to appellate officer.
Registration of Building Workers as Beneficiaries-(Sec-12)
(a) every building worker registered as a beneficiary under this Act shall be
entitled to the benefits provided by the Board from its Fund under this Act.
Fund means BOCW welfare fund.
(b) Every building worker who has completed either 18 years of age, but has
not completed 60 years of age, and who has been engaged in any building
or other construction work for not less than 90 days during the preceding
twelve months shall be eligible for registration as a beneficiary under this Act.
(c) An application for registration shall be made to the officer authorised by the
Board. Every application shall be accompanied by such documents together
with such fee not exceeding 50 rupees.
(d) The Board shall give to every beneficiary an identity card with his photograph
with enough space for entering the details of the building or other construction
work done by him
(e) A building worker who has been registered as a beneficiary under this Act
shall cease to be as such when he attains the age of 60 years or when he is
not engaged in building or other construction work for not less than 90 days
in a year
(f) A building worker who has been registered as a beneficiary under this Act
shall, until he attains the age of sixty years, contribute to the Fund and the
Board, if satisfied that a beneficiary is unable to pay his contribution due to
any financial hardship, waive the payment of contribution for a period not
exceeding three months at a time.
(g) When a beneficiary has not paid his contribution for a continuous period of
not less than one year, he shall cease to be a beneficiary.
Building and Other Construction Workers’ Welfare Boards: -

Every State Government shall constitute a Building and Other Construction Workers’
Welfare Board. The Board shall consist of a chairperson, a person to be nominated
by the Central Government and such number of other members, not exceeding
15, as may be appointed to it by the State Government.

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Board shall include an equal number of members representing the State
Government, the employers and the building workers and that at least one
member of the Board shall be a woman.
The Board shall appoint a Secretary and such officers and employees as it
considers necessary for the efficient discharge of its functions under this Act. The
Secretary of the Board shall be its chief executive officer.
(1) The Board may—
(a) provide immediate assistance to a beneficiary in case of accident
F (b) make payment of pension to the beneficiaries who have completed the age of sixty
u years
n (c) sanction loans and advances to a beneficiary for construction of a house not
c exceeding such amount and, on such terms, and conditions as may be prescribed
t (d) pay such amount in connection with premia for Group Insurance Scheme of the
i beneficiaries as may be prescribed
o (e) give such financial assistance for the education of children of the beneficiaries as
n may be prescribed
s (f) meet such medical expenses for treatment of major ailments of a beneficiary or,
such dependant, as may be prescribed
(g) make payment of maternity benefit to the female beneficiaries
(h) make provision and improvement of such other welfare measures and facilities
Building and other Construction Workers’ Welfare Fund-There shall be credited-
(a) any grants and loans made to the Board by the Central Government
(b) all contributions made by the beneficiaries
(c) all sums received by the Board from such other sources as may be decided by
the Central Government
The accounts of the Board shall be audited by the Comptroller and Auditor-General
of India annually and any expenditure incurred in connection with such audit shall
be payable by the Board to the Comptroller and Auditor General of India
Wages for overtime work-(Sec-29) Where any building worker is required to work
on any day in excess of the number of hours constituting a normal working day, he
shall be entitled to wages at the rate of twice his ordinary rate of wages.
Welfare: -
(a) Drinking water-Sec-32-a sufficient supply of wholesome drinking water may
be arranged and no such point shall be situated within six metres of any
washing place, urinal or latrine
(b) Latrines and urinals: -Same as CLRA

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(c) Accommodation: -To be provided by employer free of charge near to the
construction work.
(d) Creches: -50 female, facility for 6 years or below children
(e) First aid
(f) Canteens: -250 or more workers
Safety and Health Measures: - In every establishment wherein five hundred or
more building workers are ordinarily employed, the employer shall constitute a
Safety Committee consisting of such number of representatives of the
employer and the building workers. the employer shall also appoint a safety
officer who shall possess such qualifications.
Notice of certain accidents: -Sec-39 Where in any establishment an accident
occurs, within 4 hours when fatal and 72 hours for injuries. Where a notice
relates to an accident-causing death of five or more persons, the authority shall
make an inquiry into such accident within one month of the receipt of the notice.
Annual Return: - Return in Form XXV not later than 15th Feb.
Notice of commencement of building work: -Employer to intimate at least 30
days before commencement of building work.
Penalty for contravention of provisions regarding safety measures: -
Imprisonment for a term which may extend to three months, or with fine which
may extend to two thousand rupees, or with both.
Penalty for failure to give notice of the commencement of the building or other
construction work: - he shall be punishable with imprisonment for a term which
may extend to three months, or with fine which may extend to two thousand
rupees, or with both.
Penalty for obstructions Inspector: - shall be punishable with imprisonment for

a term which may extend to three months, or with a fine which may extend to
one thousand rupees, or with both.
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.
Few Points to remember: -

➢ Safety Committees:-(1) Every establishment wherein five hundred
or more building workers are ordinarily employed, there shall be a
Safety Committee constituted by the employer which shall be
represented by equal number of representatives of employer and
building workers employed in such establishment. Safety Officer:-
(1) In every establishment wherein five hundred or more building
workers are ordinarily employed, the employer shall appoint Safety
Officers
➢ Reporting of accidents: - Notice of any accident on the
construction site: -

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• causes loss of life, disables a building worker disables a building
worker from working for a period of forty-eight hours or more
immediately following the accident
• fatal accidents- within four hours and seventy-two hours, in case
of other accidents
• Notice of any accident at a construction site which causes loss
of life disables such building worker from work for more than ten
days following the accident, shall also be sent to— (i) the officer
in charge of the nearest police station; (ii) the District Magistrate
➢ Medical Facilities: - Ambulance Room: - in case more than five
hundred building workers are employed at such construction site
there is an ambulance room with effective communication system
and in case five hundred or less workers are employed at such
construction site there is an ambulance room at such construction
site or an arrangement with a nearby hospital for providing an
ambulance room
➢ Hours of work, intervals of rest and spread over etc.:--(1) No

building worker employed in building or other construction work
shall be required or allowed to work for more than nine hours a day
or forty-eight hours a week.
• No building worker employed in building or other construction work
shall be required or allowed to work continuously for more than five
hours unless he had an interval of rest of not less than half an hour
• each building worker employed in building and other construction
work shall be allowed a day of rest every week
• Every employer shall- maintain-a) muster-roll and a register of
wages b) a register of deductions for damage or loss, register of fines
and register of advances c) a register of overtime
…………………………………………………………………………………………….

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An Act to regulate the employment of women in certain establishment for certain
period before and after child-birth and to provide for maternity benefit and certain
other benefits. full paid absence from work.
Where it is applicable!!!
Employing 10 or more persons in Factories, Mines, Plantation, Shops &
Establishments.
No employer shall knowingly employ a woman in any establishment during the eight
weeks immediately following the day of her delivery or her miscarriage.
No woman shall work in any establishment during the eight weeks immediately
following the day of her delivery of her miscarriage.
AND
At the period of one month immediately preceding the period of six weeks, before the
date of her expected delivery (amended 8weeks but no one month immediately
preceding the period given).
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 eighty days in the twelve months immediately preceding the
date of her expected delivery
But qualifying period of eighty days-who has immigrated into the State of Assam 120
days.
Right to payment of maternity benefit --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.
woman who is pregnant, such notice shall state the date from which she will be
absent from work, not being a date earlier than six weeks from the date of her
expected delivery.
The amount of maternity benefit for the period preceding the date of her expected
delivery shall be paid in advance by the employer within forty-eight hours of
production of such proof
Nursing breaks -- Every woman delivered of a child who returns to duty after such
delivery shall, in addition to the interval for rest allowed to her, be allowed in the
course of her daily work two breaks of the prescribed duration for nursing the child
until the child attains the age of fifteen months.

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Dismissal during absence or pregnancy. -- (1) Where a woman absents herself from
work in accordance with the provisions of this Act, it shall be unlawful for her
employer but gross misconduct the employer may, by order in writing communicated
to the woman, deprive her of the maternity benefit or medical bonus or both. When?
• wilful destruction of employer's goods or property

• assaulting any superior or co-employee at the place of work
• criminal offence involving moral turpitude resulting in conviction in a court of
law
• theft, fraud, or dishonesty in connection with the employer's business or
property and
• wilful non-observance of safety measures or rules on the subject or wilful
interference with safety devices or with fire-fighting equipment.
• Any woman deprived of maternity benefit or medical bonus or both may,
within sixty days from the date on which the order of such deprivation is
communicated to her appeal in Form 'G
Penalty for contravention of Act by employers-03 months fine which may extend to
five hundred rupees or with both
No pregnant woman shall, on a request being made by her in this behalf, be required
by her employer to do during the period of one month immediately preceding the
period of six weeks before the date of her expected delivery and also for any period
during this period of six weeks for which she does not avail of leave of absence, any
work which is of an arduous nature or which involves long hours of standing, or
which in way is likely to interfere with her pregnancy or the normal development of
the foetus, or is likely to cause her miscarriage or otherwise to adversely affect her
health.
woman on production of a certificate in Form 'B' -she is pregnant and is expected to

be delivered of a child within six weeks of the date of production of the certificate
Agar nahi diya hai toh!!!

Any woman who has not given the notice when she was pregnant may give such
notice as soon as possible after the delivery
Every woman entitled to maternity benefit under the Act shall also be entitled to
receive from her employer a medical bonus of 2[Rs.3500], if no pre-natal,
confinement and post-natal care is provided for by the employer free of charge.
Two breaks of 15 minutes' duration for nursing the child until the child attains the
age of fifteen months.

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The Maternity (Amendment) Act 2017

Establishments employing 50 or more employees are also required to provide crèche
facilities, either separately or along with common facilities
Key amendments!!!
• Increased Paid Maternity Leave:
The Maternity Benefit Amendment Act has increased the duration of paid maternity
leave available for women employees from the existing 12 weeks to 26 weeks. Under
the Maternity Benefit Amendment Act, this benefit could be availed by women for a
period extending up to a maximum of 8 weeks before the expected delivery date and
the remaining time can be availed after childbirth.
8weeks After baby birth 18weeks

For women who are having 2 or more surviving children, the duration of paid
maternity leave shall be 12 weeks (i.e. 6 weeks before and 6 weeks after expected
date of delivery).
• Maternity leave for adoptive and commissioning mothers:
Maternity leave of 12 weeks to be available to mothers adopting a child below the
age of three months from the date of adoption as well as to the "commissioning
mothers". The commissioning mother has been defined as biological mother who
uses her egg to create an embryo planted in any other woman.
• Work from Home option:
The Maternity Benefit Amendment Act has also introduced an enabling provision
relating to "work from home" for women, which may be exercised after the expiry of
the 26 weeks' leave period. Depending upon the nature of work, women employees
may be able to avail this benefit on terms that are mutually agreed with the employer.
• Creche facility:
The Maternity Benefit Amendment Act makes creche facility mandatory for every
establishment employing 50 or more employees. Women employees would be
permitted to visit the crèche 4 times during the day (including rest intervals)
The Maternity Benefit Amendment Act makes it mandatory for employers to educate
women about the maternity benefits available to them at the time of their
appointment.
From Where
From it comes
where from
it comes
from: -

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Maternity Protection Convention,2000(No.183)- Provides for 14 weeks of
maternity benefit to woman.
• Cash Benefit- Health and maintain suitable standard of living

• Pregnant or Nursing mother, not to obliged to perform work which is
determined harmful
• Prohibition from description based on maternity
• Prohibit employer to terminate
• Woman returning after leave join at same or equivalent position
****In 2000, ILO recommended to extend to at least 18 weeks.
Important Points: -(Revise)

➢ The Maternity Benefit Act, 1961, has a very wide coverage. It is applicable to
factories, mines, plantations and shops and establishments employing 10 or
more persons, and vests in the government extensive powers to extend its
application to any other classes of industries and establishments. The Act
does not ordinarily apply to establishments covered under the ESI Act,
1948.
➢ The 2nd National Commission on Labour (2002) has recommended

significant changes in the field of maternity protection legislation in the
country. The Commission has recommended the extension of the Maternity
Benefit Act and its application to all women workers, and has also suggested
a separate maternity benefit legislation for women workers in the unorganized
sector.
➢ The ILO Conventions relating to maternity protection are: Maternity Protection

Conventions (No. 3), 1919; (No. 103), 1952; and (No. 183), 2000.
➢ Maternity Protection-The first Convention dealing with maternity protection

was the Maternity Protection Convention (No. 3), adopted in 1919.
The Maternity Protection Convention (Revised) (No. 103), 1952 deals with
maternity protection immediately before and after child birth.
It provides that no woman worker should be required to work for at least 12

weeks at the time of her confinement and at least six weeks of this period
should follow the birth of the child.
Such a woman worker should also be entitled to receive cash and medical
benefits as a matter of right by social insurance or public funds, and is not to
be discharged during the period of her maternity leave.
Duration of Leave

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➢ As per the provisions mentioned in the Act, the duration of the maternity leave
in different cases is as follows:
➢ 26 weeks, for a woman with up to 2 surviving children. The woman, at
discretion, can take up to 8 weeks of maternity leave before the delivery and
the remaining 18 weeks after the delivery.
➢ 12 weeks, for a woman already having 2 or more children. Herein, the

woman, at discretion, can take up to 6 weeks of leave before the delivery and
the remaining 6 weeks after the delivery of the child.
➢ 12 weeks, for a woman who has adopted a child below the age of 3 months
from the date of handover of the child.
➢ 12 weeks, for a commissioning mother, i.e., a mother who puts her embryo
in another woman (another woman is called the host/surrogate) from the day
of handover of such child.
➢ 6 weeks, for a woman who has gone through miscarriage from the date of
termination of pregnancy, on the production of proof, as mentioned in Section
6 of the Act.
Benefits Provided
Monetary Benefits: Under the ambit of Section 5 (1), every woman is entitled
to receive maternity benefits calculated at the rate of average daily wage for the
period of her actual absence i.e., for the whole of the maternity leave (including
the period preceding the delivery, the actual delivery date, and the period post-
delivery)
Nursing Breaks: As per Section 11 of the Act, every woman is entitled to 2

nursing breaks of the prescribed duration for nursing the child until the child
turns 15 months old, apart from the rest interval allowed, through her daily
course of work.
Creche Facility: As per Section 11(A) of the Act (added via 2017 amendment)
every establishment with more than 50 employees is prescribed to have a creche
facility for the baby and the mother should be allowed 4 visits to the creche in a
day which shall include the nursing breaks and the rest intervals allowed to her.

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Work From Home: As per Section 5 (5) of the Act (as inserted by the 2017
amendment) if the job profile of the women facilitates, the employer may allow
the provision of work from home to such women after the completion of the
maternity break. The period and conditions of such work can be mutually decided
between the employer and the employee.
Medical Bonus: The woman is entitled to receive an amount of Rs. 1000 from
the employer in case the pre-natal and post-natal care is not provided by the
employer at zero cost as mentioned in Section 8(1) of the Act.
Prevention from dismissal: The Act under the provision of Section 12 makes it
unlawful for the employer to dismiss or deprive an employee of claiming maternity
benefits as prescribed by the Act. Except in the cases of gross misconduct by the
woman employee.
…………………………………………………………………………………………………………………………………………………….
The Factories Act, 1948

(The Act came into force from 01 April 1949)
Factory Act in (Great Britain)

▪ Second Half of 18th century witnessed a rapid growth in factories particularly
in cotton mills.
▪ The first legislation enacted was “The Health and Morals of Apprentices Act,
1802”it was concern with health and welfare of children employed in cotton
mills. Moreover, with employment of apprentices.
▪ Followed by series of Factory Acts with the object “to protect the health of
employees from injury by overwork, unwholesome or dangerous
conditions of Labour, and especially the younger and weaker employees.
▪ The factories Act, 1961 with amendments is the latest factory legislation
protecting workers and laying Labour standards in factories in UK.
▪ It contains detailed provision related to health, safety, welfare, accidents and

industrial diseases, employment of women and young persons, home work,
administration, offences, penalties.
History:-
▪ The first factories act 1881 in India said to be result of the joint effort of the
Philanthropists and social worker in India and Lancashire manufactures in
great Britain.

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▪ Indian factory legislation is patterned after British factory laws, A
comprehensive Bill was prepared by Govt. of India on the general lines of 9 th
meeting of Standing Labour Committee. The factories act 1937, of Great
Britain was taken as useful guide in drafting bill.
▪ Only difference between the factory legislation of the two countries is that
while the Indian factories act contains detailed provision relating to hours of
work of adult male worker and annual leave with wages , the U.K act does not
GROWTH OF FACTORY LEGISLATION IN INDIA

Factories Act, 1881.
1. The first Factories Act in India can, thus, be said to be the result of the joint
efforts of the philanthropists and social workers in India and Lancashire
manufacturers in Great Britain, though the two were motivated by altogether
different considerations.
2. The Act of 1881 applied to manufacturing establishments using mechanical

power and employing 100 or more persons for 4 months in the year.
3. The Act regulated the employment of child labour only.
4. Employment of children below 7 was prohibited and the maximum hours of

work for those between 7 and 12 were fixed at 9 hours a day, with an interval
of one hour for rest, and a weekly holiday.
5. They were also granted four holidays in a month.
The Act also contained provisions relating to safety and inspection of factories.
Indian Factories Act, 1891
1. On the basis of the recommendations of the Factory Commission appointed in
1890, the Act of 1881 was amended in 1891.
2. According to the provisions of the new Act, ‘factory’ included ‘all

manufacturing undertakings employing 50 persons or more’. Local
governments were empowered to apply it even to premises employing
fewer than 20 persons
3. The Act defined ‘child’ as any person below 14 years of age.
4. Employment of children below the age of 9 was prohibited, and the maximum
hours of work for those between 9 and 14 were fixed at 7 hours a day, with an
interval for rest of half an hour.
5. The Act also prohibited night work (from 8 p.m. to 5 a.m.) for women and
children.

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6. It also restricted hours of work of women to 11 in a day with a rest period of
one and half hours or less, depending on hours worked. Adult men were
allowed one holiday every week and daily rest of half an hour
Indian Factories Act, 1911

1. On Textile Commission in 1906 and Factory Labour Commission in 1907
recommendations, the Government of India enacted the Indian Factories Act,
1911.
2. The Act also covered seasonal factories working for less than four months
in a year
3. It provided for maximum of 12 and 6 hours of work for adults and children,
respectively in textile factories.
4. Daily hours of work for children and women in other factories remained at 7
and 11, respectively.
5. The Act prohibited their employment between 7 p.m. and 5.30 a.m. Children
were required to produce a certificate of physical fitness.
6. The Act also prohibited the employment of women and children in some
dangerous processes
Indian Factories (Amendment) Act, 1922

1. The Indian Factories (Amendment) Act, 1922, applied to all individual
undertakings using mechanical power and employing 20 persons or more.
Local governments were empowered to extend the law to establishments,
employing 10 or more persons and working with or without mechanical power.
2. Adult workers, including men and women, were not allowed to work for more
than 11 hours a day and 60 hours in a week.
3. A ‘child’ was defined as a person who had not completed 15 years of age.
4. Employment of children below the age of 12 years was prohibited and the
maximum hours of work for those between 12 and 15 were fixed at 6 per day.
5. Provision was also made for a medical examination for certifying the age and
physical fitness of children.
6. All workers were to be given at least 1 hour of rest for work exceeding 6 hours.
7. They were also allowed one holiday in a week and no worker was to go without
a holiday for 10 days at a time. In case of overtime, workers were entitled to
remuneration at one and half times the normal rate of pay. Employment of
women under 18 years of age was prohibited in certain lead processes.

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The amendments of 1923, related to changes for administrative purposes, while
those of 1926 prescribed penalties to be inflicted on parents for allowing children to
work in two factories on the same day.
The Act of 1931 empowered the provincial governments to frame rules with respect
to precautions against fire
Factories Act, 1934 : The Factories Act, 1934, was the direct outcome of the
recommendations of the Royal Commission on Labour, set up in 1929. A new
category of workers known as adolescents (between the ages of 15 and 17) was
created. The amendment of 1935 entirely prohibited night work of women.
Objectives of Factories Act
1. To consolidate and amend the law regulating the workers working in the
factories.
2. To protect workers employed in factories against industrial and occupational
hazards.
3. To secure for the workers employment conditions conducive to their health
and safety.
4. To safeguard the interest of workers and protect them from exploitation, the
act prescribes certain standards with regard to safety, welfare and working
hours of workers, apart from other provisions.
****The First Schedule-List of Industries Involving Hazardous Processes

****The Second Schedule-Permissible Levels of Certain Chemical Substances
in Work Environment
****The Third Schedule-List of Notifiable Diseases
****This Act may be called the Factories Act, 1948. It extends to the whole of India.
It shall come into force on the 1st day of April, 1949.
Definitions: -
(a) "adult" means a person who has completed his eighteenth year of age;
(b) "adolescent" means a person, who has completed his fifteenth year of age but
has not completed his eighteenth year;
(c) "child" means a person who has not completed his fifteenth year of age; (ca)
"competent person", -the Chief Inspector for the purposes of carrying out tests,
examinations and inspections required to be done in a factory under the provisions
of this Act
(cb) "hazardous process" means any process or activity in relation to an industry
specified in the 'First Schedule where, unless special care is taken, raw materials

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used therein, bye-products, wastes or effluents thereof would- (i) cause material
impairment to the health of the persons engaged in or connected therewith, or (ii)
result in the pollution of the general environment
(d) "young person" means a person, who is either a child or an adolescent
(f) "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 Chief
Inspector of Factories.
(k) "manufacturing process" means any process for- (i) making, altering, repairing,
ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing
or otherwise treating or adopting any article or substance with a view to its use, sale,
transport, delivery or disposal or (ii) pumping oil, water, sewage, or any other
substance or (iii) generating, transforming or transmitting power
(l) "worker" means a person employed directly or by or through any agency (including
a contractor) with or without the knowledge of the principal employer whether for
remuneration or not in any manufacturing process, or in cleaning any part of the
machinery
(m) "factory" means any premises including the precincts thereof- (i) where 10 or
more workers are working, or were working on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on with
the aid of power, (ii) whereon 20 or more workers are working, or were working on
any day of the preceding twelve months, and manufacturing process is being carried
on without the aid of power,
- but does not include a mine subject to the operation of the Mines Act, 1952 or a
mobile unit belonging to the armed forces of the Union, a railway running shed
or a hotel, restaurant or eating place
(n) "occupier" of a factory means the person, who has ultimate control over the
affairs of the factory,
Section 5. Power to exempt during public emergency: - any case of public emergency
the State Government may exempt any factory from the provision of this act. But no
such notification shall be made for a period exceeding 03 months at a time. (Public
emergency' means a grave emergency whereby the security of India or of any part of
the territory thereof is threatened)
• Sec 4-Power to declare different departments to be separate factories or
two or more factories to be a single factory- The State Government
may, on its own or on an application made in this behalf by an occupier,
direct, by an order in writing
Section 6. Approval, licensing and registration of factories. -
• Occupier may submit the plans of any class or description of factories

to the Chief Inspector or the State Government. The permission in

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writing of the State Government or the Chief Inspector to be obtained
for the site on which the factory is to be situated and for the
construction or extension of any factory or class or description of
factories
• no licence shall be granted or renewed unless the notice by occupier is
given.
• In case no order is communicated to the applicant within three
months from the date on which it is so sent, the permission applied for
in the said application shall be deemed to have been granted.
• Where a State Government or a Chief Inspector refuse to grant
permission to the site, construction or extension of a factory or to the
registration and licensing of a factory, the applicant may within thirty
days from the date of such refusal, appeal to the Central Government
Section 7. Notice by occupier. -

(1) The occupier shall, at least fifteen days before he begins to occupy or, use
any premises as a factory, send to the Chief Inspector a written notice containing
all credentials. Including the name of Occupier and manager of the factory.
(2) In respect of all establishments, which come within the scope of the Act for
the first time the occupier shall send a written notice to the Chief Inspector
containing the particulars within 30 days from the date of the commencement of
this Act.
(3) Before a factory engaged in a manufacturing process which is ordinarily
carried out for less than one hundred and eighty working days in the year,
resumes working, the occupier shall send a written notice to the Chief Inspector
containing the particulars that least 30 days before the date of the
(4) Whenever a new manager is appointed, the occupiers shall send to the
Inspector a written notice and to the Chief Inspector a copy of within 07 days
from the date on which such person takes over charge.
The Inspecting Staff Section 7A
General duties of the occupier -
(1) Every occupier shall ensure, the health, safety and welfare of all workers while
they are at work in the factory.
8. Inspectors -
(1) The State Government may appoint to be Inspectors for the purposes of this
Act
(2) The State Government may, by notification in the Official Gazette, appoint
any person to be a Chief Inspector who shall, in addition to powers conferred on
Chief Inspector under this Act, exercise the powers of an Inspector throughout
the State.

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(3) The State Government may, appoint as many Additional Chief Inspectors,
Joint Chief Inspectors and Deputy Chief Inspectors and as many other officers as
it thinks fit to assist the Chief Inspector
(4) Every District Magistrate shall be an Inspector for his district.
Section 9. Powers of Inspectors -
(a) enter with such assistants, any place which is used, or which he has reason
to believe, is used as a factory;
(b) make examination of the premises, plant, machinery, article or substance
(c) inquire into any accident or dangerous occurrence, whether resulting in bodily
injury, disability or not, and take on the spot
(d) require the production of any prescribed register or any other document
relating to the factory
(e) seize, or take copies of, any register, record or other document or any portion,
as he may consider necessary in respect of any offence under this Act, which he
has reason to believe, has been committed;
Section 10. Certifying Surgeons. –
(1) The State Government may appoint qualified medical practitioners to be
certifying surgeons for the purposes of this Act
(2) A certifying surgeon, shall carry out such duties as may be prescribed in
connection with-
(a) the examination and certification of young persons under this Act
(b) the examination of persons engaged in factories in such dangerous
Occupations or processes as may be prescribed;
(c) the exercising of such medical supervisions in case, cases of illness have
occurred, which it is reasonable to believe are due to the nature of the
manufacturing process carried on.
Chapter III.- Health Section (CD,VDA,OLDLS)

Section-11. Cleanliness. -
Every factory shall be kept clean and free from effluvial arising from any drain,
privy or other nuisance, and in particular-
(a) accumulation of dirt and refuse shall be removed daily by sweeping or by any
other effective method from the floors and benches of workrooms and from
staircases and passages and disposed of in a suitable manner
(b) the floor of every workroom shall be cleaned at least once in every week by
washing, using disinfectant where necessary

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(c) all inside walls and partitions, all ceilings or tops of rooms and all walls, sides
and tops of passages and staircases shall- (i) where they are painted otherwise
than with washable water paint or varnished, be repainted or revarnished at least
once in every period of five years, where they are painted with washable water
paint, be repainted with at least one coat of such paint at least once in every
period of three years and washed at least once in every period of six months.
• where they are painted or varnished or where they have smooth impervious
surfaces, be cleaned at least one in every period of fourteen months.
• in any other case, be kept whitewashed, or colour washed, and the
whitewashing or colour washing shall be carried out at least once in every
period of fourteen months
• all doors and window-frames and other wooden or metallic framework and
shutters shall be kept painted or varnished and the painting or varnishing
shall be carried out at least once in every period of five years
Section 12. Disposal of wastes and effluents. -

(1) Effective arrangements shall be made in every factory for the treatment of
wastes and effluents due to the manufacturing process carried on
Section 13. Ventilation and temperature. -
(1) Adequate ventilation by the circulation of fresh air and such a temperature
as will secure to workers therein reasonable conditions of comfort and
prevent injury to health.
Section 14. Dust and fume. -

(1) In every factory in which, by reason of the manufacturing process carried on,
there is given off any dust or fume or other impurity of such a nature and to
such an extent as is likely to be injurious or offensive to the workers employed
therefore exhaust appliance is necessary be installed.
Section 15. Artificial humidification. -

Section 16. Overcrowding. –
• No room in any factory shall be overcrowded to an extent injurious to the

health of the workers employed
• there shall be in every workroom of a factory in existence on the date of
commencement of this Act at least 9.9 cubic metres and of a factory built
after the commencement of this Act at least 14.2 cubic metres of space
for every worker employed
• no account shall be taken of any space which is more than 4.2 metres
above the level of the floor of the room.
Section 17. Lighting. - (1) In every part of a factory where workers are working or
passing, there shall be provided and maintained sufficient and suitable lighting,
natural or artificial, or both.

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18. Drinking water. –
(1) In every factory effective arrangement shall be made to provide and maintain
at suitable points conveniently situated for all workers employed therein a
sufficient supply of wholesome drinking water.
(2) All such points shall be legibly marked "drinking water" in a language
understood by a majority of the workers employed in the factory and no such
points shall be situated within 6 metres of any washing place, urinal, latrine,
spittoon, open drain carrying sullage
(3) In every factory wherein more than two hundred and fifty workers are
ordinarily employed, provisions shall be made for cooling drinking water during
hot weather by effective means and for distribution thereof.
19. Latrines and urinals. - (1) In every factory- 1/25 for male and female
separately.
• In every factory wherein more than two hundred and fifty workers are
ordinarily employed- (a) all latrine and urinal accommodation shall be of
prescribed sanitary types (b) the floors and internal walls, up to a height
of ninety centimetres of the latrines and urinals and the sanitary blocks
shall be laid in glazed tiles or otherwise finished to provide a smooth
polished impervious surface
• the floors, portions of the walls and blocks so laid or finished and the
sanitary pans of latrines and urinals shall be thoroughly washed and
cleaned at least once in every seven days with suitable detergents or
disinfectants or with both.
Section 20. Spittoons. –
• In every factory there shall be provided a sufficient number of spittoons in

convenient places and they shall be maintained in a clean and hygienic
condition.
• Whoever spits in contravention shall be punishable with fine not exceeding
five rupees.
Chapter IV.- Safety Section
• No woman or young person shall be allowed to clean, lubricate or adjust

any part of a prime-mover or of any transmission machinery while
prime-mover or transmission machinery is in motion, or to clean,
lubricate
• No young person shall be required or allowed to work at any machine
until he has received sufficient training in work at the machine
Section 27. Prohibition of employment of women and children near cotton-

openers. - No woman or child shall be employed in any part of a factory for pressing
cotton in which a cotton-opener is at work premises.

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****Excessive weights. – 30 Kg- Female and 50Kg-Male may
carry.
Section 35. Protection of eyes-

Section 40B. Safety Officers. - (1) In every factory- wherein one thousand or more
workers are ordinarily employed will having Safety Officer.
Chapter IVA. - Provisions relating to Hazardous Processes Section
41A. Constitution of Site Appraisal Committees. –
(1) The State Government may, for purposes of advising it to consider applications
for grant of permission for the initial location of a factory involving a hazardous
process or for the expansion of any such factory, appoint a Site Appraisal
Committee consisting of-
• The Chief Inspector of the State who shall be its Chairman

• a representative of the Central Board for the Prevention and Control of Water
Pollution appointed by the Central Government
• a representative of the Central Board for the Prevention and Control of Air
Pollution
• a representative of the State Board
• a representative of the State Board for the Prevention and Control of Air Pollution
• a representative of the Department of Environment in the State
• a representative of the Meteorological Department of the Government of India
• an expert in the field of occupational health
• a representative of the Town Planning Department of the State Government, and
not more than five other members who may be co-opted by the State
Government who shall be-,
(I) a scientist having specialised knowledge of the
hazardous process which will be involved in the
factory,
(II) a representative of the local authority within whose
jurisdiction the factory is to be established, and
(III) not more than three other persons as deemed fit by
the State Government
(2) The Site Appraisal Committee shall examine an application for the establishment
of a factory involving hazardous process and make its recommendation to the State
Government within a period of 90 days of the receipt of such application.
(3) Where any process relates to a factory owned or controlled by the Central
Government or to a corporation or a company owned or controlled by the Central
Government, the State Government shall co-opt in the Site Appraisal Committee a
representative nominated by the Central Government as a member of that
Committee.

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(4) The Site Appraisal Committee shall have power to call for any information from
the person making an application for the establishment or expansion of a factory
involving a hazardous process.
Section 41B. Compulsory disclosure of information by the occupier -
(1) The occupier of every factory involving a hazardous process shall disclose and all
information regarding dangers including health hazards.
(2) The occupier shall, at the time of registering the factory involving a hazardous
process lay down a detailed policy with respect to the health and safety of the workers
employed
(3) Every occupier of a factory shall, - (a) if such factory engaged in a hazardous
process on the commencement of the Factories (Amendment) Act, 1987 within a
period of thirty days of such commencement and (b) if such factory purposes to
engage in a hazardous process at any time after such commencement, within a
period of thirty days before the commencement of such process, inform the Chief
Inspector of the nature and details of the process.
Section 41D: -
• Empowers the Central Government to appoint Inquiry Committee to

enquire whether such a factory is observing the standards of health and
safety of workers as well as of the general public as prescribed and make
recommendations.
• Its recommendations shall be however of advisory nature The Committee
shall have a chairman and two members.
Sec 41 F:-Permissible limits of exposure of chemical and toxic substances. The

maximum permissible threshold limits of exposure of chemical and toxic substances
in manufacturing processes (whether hazardous or otherwise) in any factory shall
be of the value indicated in the Second Schedule.
Section 41G. Workers' participation in safety management. –

(1) The occupier shall, in every factory where a hazardous process takes place, or
where hazardous substances are used or handled, set up a Safety Committee
consisting of equal number of representatives of workers and management to
promote co-operation between the workers and the management
(2) The composition of the Safety Committee, the tenure of office of its members and
their rights and duties shall be such as may be prescribed.
Section 41H. Right of workers to warn about imminent danger. -
(1) Where the workers employed in any factory engaged in a hazardous process
have reasonable apprehension that there is a likelihood of imminent danger
to their lives or health due to any accident, they may, bring the same to the

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notice of the occupier, agent, manager or any other person who is in-charge
of the factory.
****Under provisions of section 41A of this Chapter the State Government in

empowered to form a Site Appraisal Committee to examine the application for
establishment of a factory involving hazardous process and send its
recommendations to the State Government.
Chapter V.- Welfare
Section 42. Washing facilities. –
(1) In every factory- (a) adequate and suitable facilities for washing shall be provided
and maintained for use of the workers therein (b) separate and adequately screened
facilities shall be provided for the use of male and female workers (c) such facilities
shall be conveniently accessible and shall be kept clean.
Section 43. Facilities for storing and drying clothing.
Section 44. Facilities for sitting
Section 45. First-aid-appliances. –
➢ There shall, in every factory, be provided and maintained so as to be readily
accessible during all working hours first-aid boxes or cupboards equipped
with the prescribed contents, and the number of such boxes or cupboards to
be provided and maintained shall not be less than one for every one
hundred and fifty workers ordinarily employed at any one time in the
factory.
➢ In every factory wherein more than five hundred workers are ordinarily
employed there shall be provided and maintained an ambulance room of the
prescribed size, containing the prescribed equipment and in the charge of
such medical and nursing staff as may be prescribed and those facilities shall
always be made readily available during the working hours of the factory.
Section 46. Canteens. - The State Government may make rules requiring that in
any specified factory wherein more than two hundred and fifty workers are
ordinarily employed, a canteen or canteens shall be provided and maintained by the
occupier.
****Canteen Management Committee is Bipartite.
Section 47. Shelters, rest-rooms and lunch-rooms. - (1) In every factory wherein
more than one hundred and fifty workers are ordinarily employed adequate and
suitable shelters or rest-rooms and a suitable lunch-room, with provision for
drinking water, where workers can eat meals brought by them, shall be provided and
maintained for the use of the workers.
Section 48. Creches - In every factory wherein more than thirty women workers
are ordinarily employed there shall be provided and maintained a suitable room or
rooms for the use of children under the age of six years of such women.

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Section 49. Welfare Officers. - (1) In every factory wherein five hundred or more
workers are ordinarily employed the occupier shall employ in the factory such
number of welfare officers.
Chapter VI. - Working Hours of Adults
Sec 51: Weekly Hour • Maximum 48 hrs. in a week and 9 hrs. in a

day with rest interval of ½ hr.
Sec 52: Weekly Holiday • 1 Day in a week, compensatory off for work
on holiday within 3 days of scheduled holiday
Sec 53: Compensatory • On approval from inspector workman can
Holiday avail compensatory holiday within 1 month
or within 2 months
Sec 54: Max. Hrs. Per day • Not more than 9 hrs. in a day
Sec 55: Interval • ½ Hour interval after continuous work of 5
hrs
Sec 56: Spread over • Interval and day of work should not be more
than 10 ½ hrs. in a day
Sec 57: Night Shift • Works on shift which extends beyond
midnight, a holiday for 24hrs consecutive his
shift ends
Sec 58 • Prohibition of overlapping of shifts
• Work shall not be carried on in any factory
• by means of system of shifts so arranged that
more than one relay of workers is engaged in
work of the same kind at the same time.
Sec 59 • entitled at the rate of twice his ordinary rate

Overtime Wages of wages, concessional sale of food grains
(Does not include bonus and overtime in
ordinary wages.
Sec 60 • Employee cannot be employed in 2 factories
Restriction on double
employment
Sec 61 • Display notice mentioning daily hrs in factory
Notice of period of work • Period of work.
of adults • The State Government may prescribe forms
of the notice required
Sec 62 • Maintain register, with Name, nature of work
Register of adult worker etc.
Sec 63 • No adult worker shall be required or allowed

Hours of work to to work in any factory otherwise than in
correspond with notice u/s accordance with the notice of periods of work
61 and register u/s 62 for adults displayed in the factory and the
entries made beforehand against his name in
the register of adult workers of the factory.
Weekly hours. –

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No adult worker shall be required or allowed to work in a factory for more than forty-
eight hours in any week.
Weekly holidays. –
➢ No adult worker shall be required or allowed to work in a factory on
first day of the week, unless- (a) he has or will have a holiday for whole
day on one of three days immediately before or after the said day,
and (b) the manager of the factory has, delivered a notice at the office
of the Inspector of his intention to require the worker to work on the
said day and of the day which is to be substituted, and (ii) displayed a
notice to that effect in the factory
➢ no substitution shall be made which will result in any worker working

for more than ten days consecutively without a holiday for a whole
day.
➢ Compensatory holidays. - a worker is deprived of any of the weekly

holidays, he shall be allowed, within the month in which the
holidays were due to him or within the two months immediately
following that month, compensatory holidays of equal number to the
holidays so lost.
➢ Daily hours. - no adult worker shall be required or allowed to work in

a factory for more than nine hours in any day.
➢ Intervals for rest. - (1) The periods of work of adult workers in a factory
each day shall be so fixed that no period shall exceed five hours and
that no worker shall work for more than five hours before he has had
an interval for rest of at least half an hour. Even in exemption any
factory, cannot exceed six.
➢ Spread over. – It will not be more than ten and a half hours in any
day: Provided that the Chief Inspector may, increase the spread over
up to twelve hours.
Extra wages for overtime. –

(1) Where a worker works in a factory for more than nine hours in any day or for
more than forty-eight hours in any week, he shall, in respect of overtime work, be
entitled to wages at the rate of twice his ordinary rate of wages.
****"Standard family- means a family consisting of the worker, his or her spouse and
two children below the age of fourteen years requiring in all three adult consumption
units. Explanation. - "Adult consumption unit" means the consumption units of a
male above the age of fourteen years, and the consumption unit of a female above

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the age of fourteen years and that of a child below the age of fourteen years shall be
calculated at the rates of 8 and 6, respectively of one adult consumption unit.
Section 60. Restriction on double employment. - No adult worker shall be
required or allowed to work in any factory on any day on which he has already been
working in any other factory, save in such circumstances as may be prescribed.
****the following limits of work inclusive of overtime: -
➢ The total number of hours of work in any day shall not exceed ten
➢ The spread over, inclusive of intervals for rest, shall not exceed twelve
hours in any one day
➢ The total number of hours of work in a week including overtime, shall not
exceed sixty
➢ The total number of hours of overtime shall not exceed fifty for any one
quarter.
****Government the Chief Inspector may, exempt on such conditions if Any

exemption granted) shall be subject to the following conditions, namely:
➢ The total number of hours of work in any day shall not exceed twelve;
➢ The spread over, inclusive of intervals for rest, shall not exceed thirteen
hours in any one day;
➢ The total number of hours of work in any week, including overtime,
shall not exceed sixty
➢ No worker shall be allowed to work overtime, for more than seven days
at a stretch and the total number of hours of overtime work in any
quarter shall not exceed seventy-five.
Section 66. Further restriction on employment of women. –

➢ No woman shall be required or allowed to work in any factory except between
the hours 6 A.M. and 7 P.M.
➢ No such variation shall authorise the employment of any woman between the
hours of 10 P.M. and 5 A.M.
Chapter VII.- Employment of Young Persons Section

67. Prohibition of employment of young children. –
➢ No child who has not completed his fourteenth year shall be required or
allowed to work in any factory.
➢ Certificate of fitness. - A certifying surgeon shall, on the application of any
young person or his parent or guardian accompanied by a document signed
by the manager of a factory a certificate of fitness is a young person,
Chapter VIII.- Annual Leave with Wages (Sec-79)

Annual leave with wages. -

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➢ Every worker who has worked for a period of 240 days or more in a factory
during a calendar year shall be allowed during the subsequent calendar
year, leave with wages for a number of days calculated at the rate of –
(i) if an adult, one day for every twenty days of work
performed by him during the previous calendar year
(ii) if a child, one day for every fifteen days of work performed
by him during the previous calendar year.
Wages during leave period: -(Sec-80)-A worker shall be entitled to wages at a rate
equal to the daily average of his total full time earning for the days on which he
actually worked during month immediately preceding his leave.
Payment in Advance in Certain Cases-(Sec-81)-A worker who has been allowed leave
for not less than four days, in the case of an adult, and five days, in the case of a
child shall, before his leave begins, be paid the wages due for the period of the leaves
allowed.
111. Obligations of workers-
(1) No worker in a factory-- (a) shall wilfully interfere with or misuse any appliance,
convenience or other thing provided in a factory for the purposes of securing the
health, safety or welfare of the workers.
(b) shall wilfully and without reasonable cause do anything likely to endanger
himself or others; and
(c) shall wilfully neglect to make use of any appliance or other thing provided in
the factory for the purposes of securing the health or safety of the workers.
(2) If any worker employed in a factory contravenes any of the provisions of this
section or of any rule or order, he shall be punishable with imprisonment for a term
which may extend to three months, or with fine which may extend to one hundred
rupees, or with both.
111-A Right or workers, etc
111A. -Right of workers, etc. Every worker shall have the right to—
(i) obtain from the occupier, information relating to workers' health and safety
at work,
(ii) get trained within the factory wherever possible, or, to get himself
sponsored by the occupier for getting trained at a training centre or
institute, duly approved by the Chief Inspector, where training is imparted
for workers' health and safety at work.
(iii) represent to the Inspector directly or through his representative in the
matter of inadequate provision for protection of his health or safety in the
factory.
****Provided that the total number of days of leave that may be carried forward to a
succeeding year shall not exceed thirty in the case of an adult or forty in the
case of a child

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**** A worker may at any time apply in writing to the manager of a factory not less
than fifteen days before the date on which he wishes his leave to begin, to take all
the leave or any portion
****Provided further that the number of times in which leave may be taken during
any year shall not exceed three.
****Notice of certain accident. -
➢ Where in any factory an accident occurs which causes death, or which
causes any bodily injury by reason of which the person injured is
prevented from working for a period of forty-eight hours or more
immediately following the accident,
➢ Where a notice given of an accident-causing death, the authority to whom
the notice is sent shall make an inquiry into the occurrence within one
month of the receipt of the notice
****Notice of certain diseases. - any disease specified in the Third Schedule

****Power to direct inquiry into cases of accident or disease. - The State Government
may appoint a competent person to inquire into the causes of any accident occurring
in a factory or into any case where a disease specified in the Third Schedule.
Penalties and Procedure
Any factory there is any contravention Imprisonment for a term which may
of the provisions of this Act, the extend to two years or with fine which
occupier or manager of the factory shall may extend to one lakh rupees or with
each be guilty of an offence both
If the offence continues after conviction Further fine upto 1000/- for each day
on which the offence continues
On Subsequent conviction of the same Imprisonment upto 3 years or fine upto
offence 2 lakhs
Failure to comply safety measures 25,000/-
resulting into Death
Failure to comply safety measures 5000/-
resulting into Serious bodily injury
Failure to comply with precaution Imprisonment upto 7 years and fine
against hazardous processes upto 2 Lakhs.
Obstruct Inspector Imprisonment upto 6 months and fine
upto 10,000/-
Important Forms-
Form no. 3A (Change of Factory Manager)
Form no. 4 (Registration and Licence to work a Factory)
Form no. 5 (Certificate of Fitness)

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Form no. 20 (Accident Form
…………………………………………………
The Fundamental Rights and the Directive Principles of State Policy of the Constitution of
India are also relevant to the Factories Act as the workers working therein are also the
Citizens of India and as such are entitled to those Rights.
Article 14 Dealing with Equality before Law
Article 19 Providing for Protection of Certain Rights regarding Freedom of Speech
Article 23 dealing with Prohibition of Traffic in human beings and forced labour
Article 24 Prohibition of Employment of Children in Factories.
Article 32 Remedies for Enforcement of Rights conferred by this Part of the Constitution of
India
Article 39 Certain Principles of Policy to be followed by the State
Article 39-A Equal Justice and Free Legal Aid
Article 42 Provisions for Just and Humane Conditions of work and maternity benefit
Article 43 Living wage, etc. for workers
Article 43-A Participation of Workers in Management and Industries.
Conventions of International Labour Organisation and the Factories Act, 1948
ILO’s Convention No. 29 Relating to Forced Labour
Convention No. 105 Relating to Abolition of Forced Labour
Convention Nos. 3 & 103 Concerning Maternity Protection
Convention No. 183 Concerning Maternity Benefit
Convention Nos. 110, 4, 89 & 45 Dealing with Conditions of Work and Night Work of
Women employed in industry
Convention Nos. 5, 10, 33 59, 60, 138 Concerning Minimum Age for Admission to
Employment
Convention Nos. 6, 14, 79 90 Concerning Night Work by Children and Young Persons
Convention No. 146 Concerning Minimum Age, National Policy, Hazardous Employment,
Conditions of Work and Enforcement
Convention No. 182 Concerning Worst Forms of Child Labour
…………………………………………………………………………………

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Industrial Employment (Standing Orders) Act, 1946

The act came into being on 23rd April,1946.
In industrial establishments, these denote orders framed and enforced by
management in regard to specified terms and conditions of employment such as
recruitment, classification of workmen, schedule of working hours, attendance
and late-coming, leave and holidays, redressal of grievances, acts or omissions
constituting misconduct and similar other matters.
In India, the first legislative measure providing for framing and certification of
standing orders was the Bombay Industrial Disputes Act, 1938, which aimed at
defining the conditions of employment with sufficient precision, and to make them
known to workmen
• on the basis of the resolutions of the Indian Labour Conference, (Standing

Orders) Act, 1946 came to be passed as a central legislation.
The Act applies to
• every industrial establishment employing 100 or more workmen

• but the central and state governments can apply the provisions of the Act to
any industrial establishment employing fewer than 100 workmen.
• However, a two months’ prior notice by notification in the official gazette is
necessary.
• The Act does not apply to (i) industries covered by the Bombay Industrial
Relations Act, 1946, and (ii) industrial establishments, to which the
Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961,
applies.
Definitions: -
Certifying Officer: Labour Commissioner or a Regional Labour Commissioner,
and includes any other officer appointed by the central or state government, by
notification in the official gazette, to perform all or any of the functions of a Certifying
Officer under the Act [Sec. 2 (c)].
Employer: The owner of an industrial establishment and includes:
(i) manager of a factory;
(ii) the authority appointed by the Government of India and
(iii) a person responsible to the owner for the supervision and control of the
industrial establishment, in other cases [Sec. 2 (d)].
Industrial Establishment: (i) An industrial establishment as defined in the Payment
of Wages Act, 1936
(ii) a factory
(iii) a railway and

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(iv) the establishment of a person who, for the purpose of fulfilling a contract with
the owner of any industrial establishment, employs workmen [Sec. 2 (e)].
Submission of Draft Standing Orders: - Sec-3
• Within 06 months from the date when the act become applicable to an
industrial establishment.
• The employer of every industrial establishment covered under the Act is
required to submit to the Certifying Officer five copies of the draft standing
orders proposed by him for adoption in his industrial establishment.
• The draft should make provision for every matter set out in the schedule and
where model standing orders have been prescribed, it should be in
conformity with the model.
• The draft standing orders should be accompanied by a statement giving
prescribed particulars relating to workmen employed in the industrial
establishment including the name of the trade union to which they belong.
• A group of employers in similar industrial establishments may submit a
joint draft of standing orders.
Certification of Standing Orders: -
• On receipt of the draft standing orders, the Certifying Officer is required to

forward a copy of the same to the trade union of workmen
• The objections are to be submitted within 15 days of the receipt of the
notice. After giving the employer and the trade union or representatives of
workmen an opportunity of being heard, the Certifying Officer will take
decision whether or not any modification of or addition to the draft submitted
is necessary and make a written order accordingly.
• After making the required modifications or additions by trade unions,
Certifying Officer will certify the draft standing orders and send copies of the
certified standing within seven days of certification
• Any employer, workman, trade union or other prescribed representatives of
workmen aggrieved by the order of the Certifying Officer may appeal to the
appellate authority within 30 days from the date on which copies are sent to
them
• Certified standing orders come into operation on the expiry of 30 days from
the date on which their authenticated copies are sent to the persons
concerned, if no appeal has been made
• if appealed, after expiry of seven days from the date on which copies of the
order of the appellate authority have been sent to the concerned persons
• Certified standing orders are normally to remain unmodified for a period of
six months from the date of their operation
• The Certifying Officer and the appellate authority have the powers of a civil
court for the purpose of receiving evidence, administering oaths, enforcing the
attendance of witnesses, and compelling the discovery and production of
documents.
Payment of Subsistence Allowance to the Suspended Workers: -Sec-10A

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❖ Where any workman is suspended by the employer pending investigation
or injury into complaints or charges of misconduct against him, the
employer is required to pay to such workman subsistence allowance at
the following rates:
1. At the rate of 50 per cent of the wages which the workman was entitled
to immediately preceding the date of such suspension, for the first 90 days
of suspension.
2. At the rate of 75 per cent of the 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 the
workman.
****In case a dispute arises regarding the payable subsistence allowance, The
decision of the Labour Court will be final and binding on the parties.
Temporary application of Model Standing Order: -Sec-12A
Temporary application of modal standing orders shall be deemed to be adopted till
the standing orders as submitted are certified.
Penalties: -
❖ Failure to submit draft standing orders -is punishable with fine up to
5,000, and in the case of a continuing offence with a further fine up to 200
per day
❖ Contravention of standing orders finally certified is punishable with fine

up to 100, and in the case of a continuing offence with a further fine of 25
per day
****Classification of Workmen
(a) Workmen shall be classified as:
(i) Permanent
(ii) Probationers
(iii) Badlis
(iv) Temporary
(v) Casual
(vi) Apprentices
(b) A ‘permanent workman’ is a workman who has been engaged on a permanent
basis and includes any person who has satisfactorily completed a probationary
period of three months in the same or in another occupation in the industrial
establishment, including breaks due to sickness, accident, leave, lockout, strike (not
being an illegal strike) or involuntary closure of the establishment.

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(c) A ‘probationer’ is a workman who is provisionally employed to fill a permanent
vacancy in a post and has not completed three months’ service therein.
(d) A ‘badli’ is a workman who is appointed in the post of a permanent workman
or probationer who is temporarily absent.
(e) A ‘temporary workman’ is a workman who has been engaged for work which is of
an essentially temporary nature likely to be finished within a limited period
(f) A ‘casual workman’ is a workman whose employment is of a casual nature(as per
requirement).
(g) An ‘apprentice’ is a learner who is paid an allowance during the period of his
training.
MATTERS TO BE PROVIDED IN STANDING ORDER 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, and liability to search.
7. Closing and re-opening of sections of the industrial establishment, and temporary
stoppages of work and the rights and liabilities of the employer and workmen arising
therefrom.
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.
………………………………………………………………………………………
Child Labour (Prohibition and Regulation) Act, 1986
Child Labour (Prohibition and Regulation) Act, 1986 is an Act to prohibit the engagement of
children in all occupations and to prohibit the engagement of adolescents in hazardous
occupations and processes and the matters connected therewith.
Definitions

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➢ Appropriate Government means is "Central Government" for an establishment
under the control of the Central Government or a railway administration or a major
port or a mine or oilfield. For all other cases, it is "State Government"
➢ Child means a person who has not completed his I4 year of age
➢ Day means a period of 24 hours beginning at midnight
➢ Establishment includes a shop, commercial establishment, workshop, farm,
residential hotel, restaurant, eating-house, theatre or other place of public
amusement or entertainment
➢ 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
➢ 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
➢ Port authority means any authority administering a port
➢ Week means a period of 7 days beginning at midnight on Saturday night
Employment Of Children in Certain Occupations and Processes
➢ No child shall be employed or permitted to work in any of the occupations in Part A

of the Schedule or in any workshop set forth in Part B of the Schedule.
➢ The Central Government, may add any occupation or process to the Schedule by
giving notice of not less than 3 months.
Child Labour Technical Advisory Committee
➢ The Central Government may, constitute an advisory committee to be called the

"Child Labour Technical Advisory Committee" to advise the Central Government
for the purpose of addition or occupations and processes to the Schedule.
➢ The Committee shall consist of a Chairman and members not exceeding 10, as may
be appointed by the Central Government. The Committee may, if it deems it necessary
so to do, constitute one or more sub-committees.
Hours And Period of Work
➢ No child shall work for more than 3 hours before he has had an interval for rest for at
least one hour.
➢ The period of work of a child, inclusive of interval for rest, shall not be spread over
more than 6 hours
➢ No child shall be permitted or required to work between 7 p.m. and 8 a.m.
➢ No child shall be required or permitted to work overtime.
Weekly Holidays
➢ Every child employed shall be allowed one holiday in each week.
Notice To Inspector

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➢ Every occupier, where a child was employed, send a notice to the Inspector, within a
period of 30 days.
Penalties
➢ Whoever employs any child, in contravention of the provisions of the Act, shall be
punishable with imprisonment up to 3 months which may extend to I year or fine of
Rs 10,000 which may extend to Rs 20.000
➢ However, having been convicted of an offence, if he commits a like offence afterwards,
he shall be punishable with imprisonment for a term which shall not be less than 6
months but which may extend to 2 years.
Rules And Notifications To Be Laid Before Parliament Or State Legislature
➢ Every rule made under this Act by the Central Government shall be laid, before each
House of Parliament, while it is in session for a total period of 30 days which may be
comprised in one session or in two or more successive sessions.
Schedule
➢ PART'A' contains OCCUPATIONS where Child Employment is prohibited.

➢ PART 'B' contains PROCESSES where Child Employment is prohibited.
Amendments In the Act In 2016
➢ In 2016, the Child Labour (Prohibition and Regulation) Amendment Bill, 2016
was amended:
➢ The act has completely banned employment of children below 14 in all occupations
and enterprises, except those runs by his or her own family.
➢ Addition of a new category of persons called "adolescent" (age between 14 to 18

years) and bars their employment in any hazardous occupations.
➢ The act makes child labour a cognizable offence. Employing children below 14 years
will attract a jail term between 6 months to 2 Years (earlier it was 3 months to 1
year) or a penalty between Rs 20,000 to Rs 50,000 or both for the first time. Repeat
offenders will attract imprisonment between 1 year to 3 years (earlier it was 6 months
to 2 years). In case, the offender is a parent, it provides a relaxed penal provision and
proposes a fine of Rs.10,000 for repeat offence committed by parent.
➢ The act has a provision of creating Rehabilitation Fund for the rehabilitation of
children.
➢ The number of hazardous occupations has been brought down from 83 to 3. The
three occupations are mining, inflammable substances, and hazardous processes
under the Factories Act. It empowers Union Government to add or omit any hazardous
occupation from the list included in the act.
➢ The Act empowers the government to make periodic inspection of places at which
employment of children and adolescents are prohibited.

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➢ Government may confer powers on a District Magistrate (DM) to ensure that the
provisions of the law are properly carried out and implemented.
Pencil Scheme?
PENCIL is an electronic platform developed by the Ministry of Labour and
Employment for effective enforcement of no child labour policy. It was launched
in 2017.
PENCIL: Salient Features
• It is a totally separate online portal.

• It has been created by the Ministry of Labour and Employment.
• It connects the central government to the state governments.
• It also acts as a link of governments with all the districts and project
societies.
• It has five different components.
o Child Tracking System
o Complaint Corner
o State Government
o National Child Labour Project (NCLP)
o Convergence
• At State level, the State Resource Center will monitor its progress.
• People are allowed to register any complaint online on this portal with
respect to the issues related to Child Labour.
• Once the complaint is registered, it automatically gets assigned to the
concerned Nodal Officer. This step ensures the legal action by the concerned
authority in a quick and efficient way.
• The State Resource Center has been established at the State Labour
Department.
• District Nodal Officers (DNOs) are given the power to take action on the
complaints received at the District level.
PENCIL: Significance
• It will provide many trafficked children the Right to Education, and Right to
Life.
• It will help in achieving Sustainable Development Goals (SDGs).
• It will help in reduction and elimination of Child Labour from India.
• It will improve the coordination, and thus the implementation of various
child labour related projects.
• It will benefit the poor in India, and will help in tightening the law and order.
………………………………………………………………………………………………………………………………………………………..

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Industrial Dispute Act,1947
1st April, 1947
Some Important Definitions: -
➢ Appropriate Government [Sec. 2(a)]: Appropriate Government means
the Central Government in relation to any industrial dispute
concerning any industry carried on by or under the authority of the
Central Government- Railway, The Unit Trust of India, Corporations
under the Central Statutes, Banking company, Insurance company.
Mines. Oil field, Cantonment board, Major ports or 51% of stake in the
org. or located in more then one state or formed by central act.
In relation to any other industrial dispute, the appropriate Government

is the State Government.
➢ Sec2 (aaa)"average pay" means the average of the wages payable to a
workman--
• in the case of monthly paid workman, in the three

complete calendar months,
• in the case of weekly paid workman, in the four complete
weeks,
• in the case of daily paid workman, in the twelve full
working days
➢ Award [Sec 2 (b)] 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 10A
➢ Sec2(cc) "closure" means the permanent closing down of a place of
employment or part thereof
➢ Sec 2(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(n) "Public utility service" means -
• any railway service or any transport service for the carriage

of passengers or goods by air
• any service in, or in connection with the working of, any

major port or dock
• any section of an industrial establishment, on the working

of which the safety of the establishment or the workmen
employed therein depends
• any postal, telegraph or telephone service

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• any industry which supplies power, light or water to the
public
• any system of public conservancy or sanitation
• any industry specified in the First Schedule which the

appropriate Government may, if satisfied that public
emergency or public interest so requires
Dispute Settlement Authorities Under the Act

➢ The I.D. Act provides elaborate and effective machinery for the investigation
and amicable settlement of industrial disputes by setting up the various
authorities. These are:
1. Works Committee;
2. Conciliation Officer;
3. Conciliation Board;
4. Court of Enquiry;
5. Labour Court;
6. Industrial Tribunal;
7. National Tribunal;
8. Arbitrators;
9. Grievances Settlement Authority.
➢ Industrial Dispute: - Any dispute or difference between

employers and employers or between employers and workmen, or
between workmen and workmen, which is connected with the
employment or non-employment or the terms of employment or with
the conditions of labour of any person [Sec. 2 (K)].
Where any employer discharges, dismisses, retrenches or otherwise
terminates the services of an individual worker any dispute or
difference between the worker and employer connected with, or arising
out of, such discharge, dismissal, retrenchment or termination is
deemed to be an industrial dispute
➢ Strike: - 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 [Sec. 2 (q)]
➢ Lock-out: -The 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 them [Sec. 2 (L)]
➢ Workman: - Any person (including an apprentice)

employed in any industry to do any manual, unskilled, skilled,

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technical, operational, clerical or supervisory work for hire or reward,
includes any such person who has been dismissed, discharged or
retrenched in connection with, or as a consequence of, any dispute, but
does not include any such person:
1.Army Air Force Navy Police

2.Who is employed mainly in a managerial or administrative
capacity
3. Who, being employed in a supervisory capacity, draws wages
exceeding 10,000 per mensem or exercises, either by the
nature of the duties attached to the office, functions mainly of a
managerial nature [Sec. 2 (s)]
➢ Lay-off: - 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 or
natural calamity to give employment to a workman whose
name is borne on the muster rolls of his industrial
establishment and who has not been retrenched.
Every workman whose name is borne on the muster rolls of the

industrial establishment and who presents themselves for
work at the establishment at the time appointed for the
purpose during normal working hours and is not given
employment by the employer within two hours, is deemed
to have been laid-off for that day.
laid-off for the day, he is entitled to full basic wages and

dearness allowance [Sec. 2 (kkk)]
➢ Sec 2(rb) "village industries" has the meaning assigned to it

in clause (h) of section 2 of the Khadi and Village Industries
Commission Act, 1956
➢ Retrenchment: - 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:
• voluntary retirement of the workman; or
• retirement of the workman on reaching the age of
superannuation
• termination of the service of the workman as a result of
the non-renewal of the contract of employment
between the employer and the workman
• termination of the service of a workman on the ground
of continued ill health [Sec. 2 (oo)]

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➢ Settlement:- A settlement, arrived at in the course of a
conciliation proceeding and includes a written agreement
between the employer and workmen arrived in the course of
conciliation proceeding where such agreement has been signed
by the parties and a copy of the same has been sent to an officer
authorized in this behalf by the appropriate government and
the conciliation officer [Sec. 2 (p)]
➢ Industry:- Any systematic activity carried on by cooperation

between an employer and worker (whether such workmen are
employed by such employer directly or by or through any
agency, including a contractor) for the production, supply or
distribution of goods or services with a view to satisfy human
wants or wishes (not being wants or wishes).
which are merely spiritual or religious in nature, (i) any capital

has been invested for the purpose of carrying on such activity
or (ii) such activity is carried on with a motive to make any gain
or profit
but does not include the following:
Any agricultural activity, Hospitals or dispensaries,

Educational, scientific, research or training institutions,
Khadi or village industries, Any domestic service. Sec 2(j)
➢ Sec2(ra) "unfair labour practice" means any of the practices
specified in the Fifth Schedule
Section 2A: Dismissal, etc., of an individual workman to be deemed to be an
industrial dispute
(1) 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.
(2) Workmen may make an application direct to the Labour Court or
Tribunal for adjudication of the dispute after the expiry of forty-five days
from the date he has made the application to the Conciliation Officer of the
appropriate Government for conciliation of the dispute, and in receipt of
such application the Labour Court or Tribunal shall have powers and
jurisdiction to adjudicate upon the dispute, as if it were a dispute referred
to it by the appropriate
(3) It will be made to the Labour Court or Tribunal before the expiry of three
years from the date of discharge, dismissal, retrenchment or otherwise
termination of service
Section 3: Works Committee

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(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 order require the employer
to constitute 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.
(2) It shall be the duty of the Works Committee to promote measures for securing
and preserving good relations between the employer and workmen and to
comment upon matters. The Works Committee duly constituted under the Act
does not represent the workmen for all purposes; but only for the purpose of
the functions of the Works Committee.
(3) The functions of the Works Committee: - The Works Committee was not
intended to supplant or supersede the Unions for the purpose of collective
bargaining. they are not authorised to consider real or substantial changes in
the conditions of service. their task is only to smooth away frictions that might
arise between the workmen and the management in day-to-day work.
Section 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 industries.
Section 5: Boards 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.
(4) A Board, having the prescribed quorum, may not act in the absence of the
chairman or any of its members.
Section 6: Courts of Inquiry
(1) The appropriate Government may as occasion arises by notification in the Official
Gazette constitute a Court of Inquiry for inquiring into any matter appearing to be
connected with or relevant to an industrial dispute.

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(2) A Court may consist of one independent person. 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 not act in the absence of the
chairman or any of its members.
Section 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
(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—
(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 or
(c) he has held any judicial office in India for not less than seven years or
(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.
(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint
Commissioner of the State Labour Department, having a degree in law and at least
seven years’ experience in the labour department including three years of experience
as Conciliation Officer.
(g) he is an officer of Indian Legal Service in Grade III with three years’ experience
in the grade.
MATTERS WITHIN THE JURISDICTION OF LABOUR COURTS.

SECOND SCHEDULE
▪ The propriety or legality of an order passed by an employer under the
standing orders;
▪ The application and interpretation of standing orders;
▪ Discharge or dismissal of workmen including reinstatement of, or grant of
relief to, workmen wrongfully dismissed;
▪ Withdrawal of any customary concession or privilege;
▪ Illegality of a strike or lock-out; and
▪
According to [Sec 10 (1) (c)] matters specified in THIRD SCHEDULE, dispute not
effecting more than 100 workers can be referred to labour court.
According to [Sec 10 (2)] when parties in the industrial dispute apply to the
government to refer dispute to the labour court and if government satisfies it
shall make the reference to the labour courts.

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According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to
adjudicate upon any matter which is under adjudication before the National
Tribunal.
Section 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 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) A person shall not be qualified for appointment as the presiding officer of a
Tribunal unless—
(a) he is, or has been, a Judge of a High Court, (aa) he has, for a period of not less
than three years, been a District Judge or an Additional District Judge.
(b) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint
Commissioner of the State Labour Department, having a degree in law and at least
seven years’ experience in the labour department including three years of
experience as Conciliation Officer.
(c) he is an officer of Indian Legal Service in Grade III with three years’
experience in the grade.
Matters with in The Jurisdiction of Industrial Tribunals

THIRD SCHEDULE
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. Rationalisation
10. Retrenchment of workmen and closure of establishment

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Section 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.
(3) A person shall not be qualified for appointment as the presiding officer of a
National Tribunal unless he is, or has been, a Judge of a High Court.
Note: -The Central Government may appoint two persons as assessors to advise the
National Tribunal.
Sec 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--
(a) he is not an independent person; or

(b) he has attained the age of sixty-five years
Section 9A: Notice of change
No employer, who proposes to effect any change in the conditions of service
applicable to any workman in respect of any matter specified in the Fourth
Schedule. Employer will notify the change and it should not 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 affected in pursuance of any settlement
or award.
Section 9A makes it obligatory upon an employer who proposes to effect any change
in the conditions of service applicable to any workman in respect of any matter
specified in the Fourth Schedule to give a notice of desired or intended change.
THE FOURTH SCHEDULE: Conditions of Service for Change of which notice is

to be given
(Section 9A)
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;

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5. Leave with wages and holidays;
6. Starting, alteration or discontinuance of shift working 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.Rationalisation, standardization or improvement of plant or technique which is
likely to lead to retrenchment of workmen;
11. Any increase or reduction (other than casual) in the number of persons
employed or to be employed in any occupation or process or department or shift
[not occasioned by circumstances over which the employer has no control].
Section 9C: Setting up of Grievance Redressal Machinery

(1) Every industrial establishment employing twenty or more workmen shall have
one or more Grievance Redressal Committee for the resolution of disputes arising
out of individual grievances.
(2) The Grievance Redressal Committee shall consist of equal number of members
from the employer and the workmen.
(3) The chairperson of the Grievance Redressal Committee shall be selected from the
employer and from among the workmen alternatively on rotation basis every year.
(4) The total number of members of the Grievance Redressal Committee shall not
exceed more than six: Provided that there shall be, as far as practicable one-woman
member if the Grievance Redressal Committee has two members and in case the
number of members are more than two, the number of women members may be
increased proportionately.
(5) Notwithstanding anything contained in this section, the setting up of Grievance
Redressal Committee shall not affect the right of the workman to raise industrial
dispute on the same matter under the provisions of this Act. (6) The Grievance
Redressal Committee may complete its proceedings within thirty days on receipt
of a written application by or on behalf of the aggrieved party.
(7) The workman who is aggrieved of the decision of the Grievance Redressal
Committee may prefer an appeal to the employer against the decision of Grievance
Redressal Committee and the employer shall, within one month from the date of
receipt of such appeal, dispose of the same and send a copy of his decision to the
workman concerned.
Section 10: Reference of disputes to Boards, Courts or Tribunals

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(1) Where the appropriate Government is of opinion that any industrial dispute
exists, it may at any time, by order in writing, — (a) refer the dispute to a
Board for promoting a settlement
(2) or refer any matter appearing to be connected with or relevant to the dispute
to a Court for inquiry;
(3) or 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;
(4) refer the dispute, in the Second Schedule or the Third Schedule, to an
Industrial 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.
****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.
Section 10A: Voluntary reference of disputes to arbitration
Where any industrial dispute exists 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 S. 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.
A copy of the arbitration agreement shall be forwarded to the appropriate
Government and the conciliation officer and the appropriate Government shall,
within one month from the date of the receipt of such copy, publish the same in the
Official Gazette.
The appropriate Government may, by order, prohibit the continuance of any strike
or lock-out in connection with such dispute.
Section 11: Procedure and powers of conciliation officers, Boards, Courts and
Tribunals
A conciliation officer or a member of a Board, 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.
Every Board, Court, 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.
Section 11A: Powers of Labour Courts, Tribunals and National Tribunals to give
appropriate relief in case of discharge or dismissal of workmen
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

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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
Section 12: Duties of conciliation officers
(1) The conciliation officer shall hold conciliation proceedings in the prescribed
manner the dispute relates to a public utility service and a notice under section 22
has been given.
(2) The conciliation officer shall, for the purpose of bringing about a settlement
of the dispute, without delay, investigate 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 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 a settlement 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, the appropriate Government is satisfied that
there is a case for reference to a Board, 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.
Section 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 bring about a settlement of the same and for this purpose the Board
shall without delay, investigate 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 to the
appropriate Government together with a memorandum of the settlement signed
by the parties to the dispute.

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(3) If no such settlement is arrived at, the Board shall, as soon 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 its
recommendations for the determination of the dispute.
(4) The Board shall submit its report under this section within two months of the
date, on which the dispute was referred to it.
14. Duties of Court of Inquiry. - 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.
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
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
(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 a Labour Court, Tribunal or National Tribunal shall, within a period
of thirty days from the date of its receipt by the appropriate Government.
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.
But if, the appropriate Government finds that the award will effect on public grounds
affecting national economy or social justice to the whole or any part of, 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.
**** 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
**** Where any award as rejected or modified by an order is laid before the Legislature
of a State or before Parliament, such award shall become enforceable on the expiry
of fifteen days and where no order is made the award shall become enforceable on
the expiry of the period of ninety days.
17B. Payment of full wages to workman pending proceedings in higher courts:

When Labour Courts pass award of reinstatement, these are often contested by an
employer in the Supreme Court or High Courts. It is felt that the delay in the

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implementation of the award causes hardship to the workman concerned. It is,
therefore, proposed to provide the payment of wages last drawn by the workman
concerned, under certain conditions, from the date of the award till the case is finally
decided in the Supreme Court or High Courts.
Sec18. Persons on whom settlements and awards are binding: -
➢ A settlement arrived at by agreement between the employer and workman in
the course of conciliation proceeding shall be binding on the parties to the
agreement.
➢ An arbitration award which has become enforceable shall be binding on the
parties to the agreement who referred the dispute to arbitration.
➢ an award shall be binding on: -
• all parties to the industrial dispute
• all persons who were employed in the establishment or part of the
establishment and all persons who subsequently become employed in
that establishment
Sec 19. Period of operation of settlements and awards. -
➢ A settlement shall come into operation on such date or on the date on which
the memorandum of the settlement is signed by the parties to the dispute.
➢ 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
➢ An award shall, subject to the provisions of this section, remain in operation
for a period of one year
➢ 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.
Section 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. (2) A
conciliation proceeding shall be deemed to have concluded—
• where a settlement is arrived at, when a memorandum of the

settlement is signed by the parties to the dispute;
• 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
• when a reference is made to a Court, Labour Court, Tribunal or
National Tribunal under section 10 during the pendency of conciliation
proceedings.
(3) Proceedings before an arbitrator under section 10A or before a Labour Court,
Tribunal or National Tribunal shall be deemed to have commenced on the date of the
reference of the dispute for arbitration or adjudication, as the case may be and such

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proceedings shall be deemed to have concluded on the date on which the award
becomes enforceable under section 17A.
Section 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, 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 except the evidence given before such officer,
Board, Court, Labour Court, Tribunal, National Tribunal or arbitrator,
if the trade union, person, firm or company, in question has made a request in
writing to the conciliation officer, Board, Court, Labour Court, Tribunal, National
Tribunal or arbitrator, that such information shall be treated as confidential.
Strikes and Lock-outs

Section 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, 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 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
(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, 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

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(4) If on any day an employer receives from any persons 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 to the
appropriate Government.
Section 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 a Labour Court, Tribunal or National
Tribunal and two months after the conclusion of such proceedings;
(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 (3A) of section 10A 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.
Section 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

• it is continued in contravention of an order made under sub-section (3) of
section 10 or sub-section (4A) of section 10A.
• 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, an arbitrator, 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 at its commencement in
contravention of the provisions of this Act or the continuance thereof was not
prohibited
• 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.
Section 24 (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.
Section 25: Prohibition of financial aid to illegal strikes and lock-outs No person
shall knowingly expend or apply any money in direct furtherance of support of any
illegal strike or lock-out.
Lay-off and retrenchment

CHAPTER VA

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Section 25A: Application of Sections 25C to 25E
(1) Sections 25C to 25E inclusive 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
(b) to industrial establishments which are of 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.
Section 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 authorised 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 employed below ground
in a mine (ii) two hundred and forty days (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.
****Is a Part-time Employee would be Entitled to Benefit of Continuous Service Under

Sec. 25-B and Protection of Sec. 25-F- The Supreme Court in Divisional Manager,
New India Assurance Co. Ltd. v. A. Sankaralingam.
Section 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 50% 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-

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off for more than 45 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.
Section 25D: It is duty of an employer to maintain muster rolls of workmen in

Section 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
(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
(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.
Section 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—
• 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
• the workman has been paid, at the time of retrenchment, compensation which
shall be equivalent to fifteen days’ average pay for every completed year of
continuous service in excess of six months

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Why this is enacted???
The Legislature has enacted S. 25F, which provides some conditions to be complied
with before retrenching a workman with a double purpose, i.e.
(a) to save the employer from carrying the economic deadweight of surplusage of
labour on the one hand; and
(b) to provide compensation for workmen being thrown out of employment and to
soften the rigour of hardship due to unemployment caused by retrenchment which
was not their own creation. The Legislature has thus attempted to strike a balance
between the two conflicting interests.
****Section 25F of the Industrial Disputes Act prescribes conditions precedent to
retrenchment of workmen employed in an industrial establishment. The conditions
prescribed are:
(a) one month’s notice to the workmen by the employer indicating the reasons for
retrenchment or payment of wages for the period of notice in lieu of such notice ****
(b) payment of compensation at the time of retrenchment at the rate equivalent to 15
days’ average pay for every completed year of continuous service or any part thereof
in excess of six months
Section 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 with the provisions of S. 25F.
Section 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: 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.
25FFF. Compensation to workmen in case of closing down of undertakings-(1)
Where an undertaking is closed down for any reason, every workman who has been
in continuous service for not less than one year in that undertaking immediately
before such closure shall, be entitled to notice and compensation in accordance with
the provisions of section 25F, as if the workman had been retrenched. (Fifteen

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days’ average pay for every completed year of continuous service in excess of six
months)
****Provided that where the undertaking is closed down on account of unavoidable
circum-stances beyond the control of the employer, the compensation to be paid
to the workman under clause (b) of section 25F shall not exceed his average pay for
three months.
**** An undertaking which is closed down by reason merely of—
(i) financial difficulties (including financial losses)
(ii) accumulation of undisposed of stocks
(iii) the expiry of the period of the lease or licence granted to it
(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 provision to this.
**** where an undertaking engaged in mining operations is closed down by reason
merely of exhaustion of the minerals in the area shall be entitled to any notice or
compensation in accordance with the provisions of section 25F, if—
(a) the employer provides the workman with alternative employment 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 his retrenchment, compensation
on the basis that his service has been continuous and has not been interrupted by
such alternative employment.
****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 25F, but if the construction work is not so completed within two
years, he shall be entitled to notice and compensation under that section.
25G. Procedure for retrenchment. - Where any workman in an industrial
establishment, 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
CHAPTER VB

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Special Provisions Relating to Lay-Off, Retrenchment and Closure In Certain
Establishments 25k.
Application of Chapter VB- 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 100 workmen were
employed on an average per working day for the preceding twelve months.
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 with the prior
permission of the appropriate Government or such authority by notification
in the Official Gazette (except****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].
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 the notice
(2) 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.
25-O. Procedure for closing down an undertaking: -

(1) An employer who intends to close down an undertaking of an industrial
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.
(2) If the appropriate government does not respond within 60 days, the
permission shall be deemed to have been granted.
(3) Appropriate government may reference to a Tribunal under this sub-section,
it shall pass an award within a period of thirty days from the date of such
reference.

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(4) 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.
➢ Conditions of service, etc., to remain unchanged under certain
circumstances during pendency of proceedings [Section 33]
• During the pendency of any conciliation proceeding before a conciliation

officer or a Board or of any proceeding before [an arbitrator or] a Labour Court
or Tribunal or National Tribunal in respect of an industrial dispute, no
employer shall-
alter, the workmen concerned in such dispute, the conditions of
service applicable to them immediately before the
commencement of such proceeding
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;
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 proceeding is
pending for approval of the action taken by the employer.
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
Explanation a "protected workman" in relation to an establishment, means

a workman who, being [a member of the executive or other office bearer]
of a registered trade union connected with the establishment.
In every establishment, the number of workmen to be recognized as
protected workmen shall be one per cent of the total number of
workmen employed therein subject to a minimum number of five
protected workmen and a maximum number of one hundred
protected workmen 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 conciliation officer , Board, 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, within a
period of three months from the date of receipt of such application.
Power to transfer certain proceedings [Section 33B.]

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The appropriate government may, by order in writing, 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.
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.
Recovery of money due from an employer [Section 33C]
Where any money is due to a workman from an employer under a settlement
or an award or under the provisions of [Chapter VA or Chapter VB] 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:
Where any workman is entitled to receive from the 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 Labour Court as may be specified in
this behalf by the appropriate government [within a period not exceeding
three months
Penalties: -
➢ For lay off and retrenchment without permission, the employer shall
be punishable with imprisonment for 1 month or with fine of 1000 or
both.
➢ For closure without permission, the employer shall be punishable with
imprisonment for 6 month or with fine of 5000 or both.
Unfair Labour Practice-
• 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.
Strike: -
• Any workman who commences, continues, a strike which is illegal

under this Act, shall be punishable with imprisonment for a term
which may extend to one month, or with fine which may extend to
fifty rupees, or with both

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• Any employer who commences, continues, a lock out which is illegal
under this Act, shall be punishable with imprisonment for a term
which may extend to one month, or with fine which may extend to
1000 rupees, or with both
• Any person who instigates or incites others to take part in, a strike
or lock-out which is illegal, shall be punishable with imprisonment
which may extend to six months, or with fine which may extend to
one thousand rupees, or with both.
• Any person who knowingly expends or applies any money in support
of any illegal strike or lock-out shall be punishable with
imprisonment for six months, or with fine which may extend to one
thousand rupees, or with both.
• Any person breaches any term of any settlement or award, which is
binding on him, can get imprisonment of 6 months or with a fine or
both.
• Any person who wilfully disclose confidential information, can get
imprisonment of 6 months, or with fine of Rs. 1000 or both.
• Any employer who closes down any undertaking without permission,
can get imprisonment of 6 months or with fine of Rs. 5000 or both.
Amendements,2010.
1. Supervisor drawing wages not exceeding Rs. 10000 per month added in the
definition of workmen
2. Added Section 2A
3. Added Section 9C-Grievance Redressal Committee submits its report in 30
days.
****Schedules: -
Schedule 1- Industries which may be declared to be public Utility Services
Schedule 2- Matters within the jurisdiction of Labour Court
Schedule 3- Matters within the jurisdiction of Industrial Tribunals
Schedule 4-Conditions of service for change of which notice to be given
Schedule 5-Unfair Labour Practices.
Important Chapters: -
Chapter-II A-Notice of change
Chapter-II-B-Ref. of certain individual disputes to Grievance Settlement Authorities
Chapter-III-Ref. of disputes to Board, Courts, or Tribunal
Chapter-V-A-Lay off and Retrenchment

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Chapter-V-B-Special Provisions relating to Lay off, Retrenchment and Closure
Chapter-V-C- Unfair Labour Practices (Sec-25(T)-Prohibition.
………………………………………………………………………………………………………………………………………………………….
The Employee Provident Fund & Miscellaneous Provision Act, 1952

Introduction
1. An Act to provide for the institution of provident funds Pension fund and
deposit-linked insurance fund for employees in factories and other
establishments.
2. This Act may be called the Employees Provident Funds and Miscellaneous
Provisions Act,1952.
3. It extends to the whole of India.
Objectives
1. Protecting the interest of the employees after their retirement and their
dependents after death of the employee.
2. The Act provides insurance to workers and their dependents against risks of
old age, retirement, discharge, retrenchment or death.
Applicability
1. The Employees' Provident Funds & Miscellaneous Provisions Act, 1952
extends to whole of India including the state of Jammu & Kashmir and union
territory of Ladakh (2019 provisions)
2. It applies on every establishment employing 20 or more persons & engaged
in industry specified in Schedule I of the Act or any other activity notified
by the Central Government
3. It applies to all departments / branches of an establishment wherever situated
4. Any establishment employing even less than 20 persons can be covered by
giving notification of atleast 2 months in official Gazette.
5. that provident fund contribution is now mandatory for all employees whose
monthly basic salary is lower than or equal to INR 15,000
6. New entrants whose basic salary is more than INR 15,000 per month have the
option to not opt for PF
There are various schemes in this act: -
❖ The Employees’ Provident Funds Scheme, 1952,

❖ The Employees’ Deposit-linked Insurance Scheme, 1976, and
❖ The Employees’ Pension Scheme, 1995

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❖ Contract Labour is included but casual labour is excluded for counting
the strength of employees. An apprentice is also not included.
❖ Directors, working patterners, Managing Partners, domestic servants
and contractors are not employees.
❖ It is applicable to educational institution but not charitable institutions.
Sections
Sec 2(a) Central Govt.
Appropriate Govt under the control of, the Central Government, railway
company, major port, a mine or oilfield or a controlled
industry
State Govt.
Any other Establishment
Sec 2 (aa) • Central Provident Fund Commissioner,
Authorised • Additional Central Provident Fund
officer Commissioner,
• Deputy Provident Fund Commissioner,
• Regional Provident Fund Commissioner or
• such other officer as may be authorized by the
Central Government, by notification in the
Official Gazette
Sec 2(b) Basic Wages Includes
• all emoluments which are earned by an
employee while on duty or on leave or on
holidays with wages in either case
• in accordance with the terms of the contract of
employment and which are paid or payable in
cash to him
Does not includes
• the cash value of any food concession;
• any dearness allowance (that is to say, all cash
payments by whatever name called paid to an
employee on account of a rise in the cost of
living),
• house-rent allowance, overtime allowance,
bonus commission or any other similar
allowance payable to the employee in respect of
his employment or of work done in such
employment;
• any presents made by the employer;
Sec 2(e) Factory
Employer Owner, occupier, agent, manager, legal representative
of deceased employer.
Any other Establishment authority which, has the
ultimate control over the affairs of the establishment
Managing director, managing agent
Sec 2 (f) • any person who is employed for wages in any
Employee kind of work, manual or otherwise, in or in
connection with the work of an establishment

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• who gets his wages directly or indirectly from the
employer
• employed by or through a contractor in or in
connection with the work of the establishment;
engaged as an apprentice, not being an
apprentice engaged under the Apprentices
Act, 1961 (52 of 1961), or under the standing
orders of the establishment
Sec 2 (ff) • an employee to whom a Scheme or the Insurance
Exempted Employee Scheme, would, but for the exemption granted
under section 17, have applied
Sec 2 (g) • any premises, including the precincts thereof, in
Factory any part of which a manufacturing process is
being carried on or is ordinarily so carried on,
whether with the aid of power or without the aid
of power;
Sec 2 (h) • the provident fund established under a Scheme
fund
Sec 2 (i) • any industry specified in Schedule I, and
Industry includes any other industry added to the
Schedule by notification under section 4
Sec (ic) any process for making, altering, repairing,
Manufacture or ornamenting, finishing, packing, oiling, washing,
manufacturing cleaning, breaking up, demolishing or otherwise
Process treating or adapting any article or substance with a
view to its use, sale, transport, delivery or disposal
Sec 2 (K) means the person who has ultimate control over the
Occupier of a factory affairs of the factory, and, where the said affairs are
entrusted to a managing agent, such agent shall be
deemed to be the occupier of the factory.
Sec (kb) means any officer of the Central Government, State
Recovery Officer Government or the Board of Trustees constituted
under section 5A, who may be authorized by the
Central Government, by notification in the Official
Gazette, to exercise the powers of a Recovery Officer
under this Act
Sec 2 (ii) in relation to an employee, who is the member of the
Superannuation Pension Scheme means the attainment, by the said
employee, of the age of 58 Years.
Sec 3 • Where immediately before this Act becomes
Power to apply Act to an applicable to an establishment there is in
establishment which existence a provident fund which is common to
has a common the employees employed in that establishment
provident fund with and employees in any other establishment
another establishment • the Central Government may, by notification in
Official Gazette, direct that the provisions of this
Act shall also apply to such other establishment
Sec 4 • The Central Government may, by notification in
Power to add schedule the Official Gazette, add to Schedule I any other
industry

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Sec 5 • The Central Government may, by notification
Employees’ Provident in the Official Gazette,frame a Scheme to be
Fund Schemes called the Employees‟ Provident Fund
Scheme for the establishment of provident
funds under this Act
• for employees or for any class of employees and
specify the establishments or class of
establishments
• The Fund shall vest in, and be administered by,
the Central Board
• Subject to the provisions of this Act, a Scheme
framed may provide for all or any of the matters
specified in Schedule II
Sec 5 A The Central Government may constitute, a Board of
Central Board. Trustees for the territories called as Central Board
consisting of the following persons as members
a) Chairman and a Vice-Chairman to be appointed by
the Central Government;
b) the Central Provident Fund Commissioner, ex
officio;]
c) not more than 5 persons appointed by the Central
Government from amongst its officials;
d) not more than 15 persons representing Governments
of such States as the Central Government may specify
in this behalf, appointed by the Central Government;
e) 10 persons representing employers of the
establishments, recognized by the Central Government
in this behalf; and
f)10 persons representing employees may be recognized
by the Central Government in this behalf.
• The Central Board shall administer the Fund
vested
• The Central Board shall maintain proper
accounts of its income and expenditure in
such form and in such manner as the Central
Government may, after consultation with the
Comptroller and Auditor- General of India,
• The accounts be audited annually by the
Comptroller and Auditor General of India and
any expenditure incurred by him in connection
with such audit shall be payable by the Central
Board to the Comptroller and Auditor-General
of India.
• Comptroller and Auditor-General have the right
to demand the production of books, accounts,
connected vouchers, documents and papers
and inspect any of the offices of the Central
Board
• the audit report then forwarded to the Central
Board which shall forward the same to the
Central Government along with its comments on

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the report of the Comptroller and Auditor-
General.
• It shall be the duty of the Central Board to
submit also to the Central Government an
annual report annual report, the audited
accounts together with the report of the
Comptroller and Auditor-General of India and
the comments of the Central Board thereon to be
laid before each House of Parliament
Sec 5 AA • The Central Government may appoint an
Executive Committee Executive Committee to assist the Central
Board in the performance of its functions
• The Executive Committee shall consist of the
following persons
(a) a Chairman appointed by the Central Government
from amongst the members of the Central Board;
(b) 2 persons appointed by the Central Government
from amongst officials
(c) 3 persons appointed by the Central Government
representing state
(d) 3 persons representing the employers elected by
the Central Board
(e) 3 persons representing the employees elected by
the Central Board
(f) the Central Provident Fund Commissioner, ex officio
Sec 5 B (1)The Central Government may, after consultation
State Board with the Government of any State, constitute for that
State
a Board of Trustees referred as the State Board
(2) A State Board shall exercise such powers and
perform such duties as the Central Government may
assign to it from time to time.
(3) The terms and conditions subject to which a
member of a State Board may be appointed and the
time, place and procedure of the meetings of a State
Board shall be such as may be provided for in the
Scheme.
Sec 5 C • Every Board of Trustees constituted under
Board of Trustees to section 5A or section 5B shall be a body
body corporate corporate having perpetual succession and a
common seal and shall by the said name sue and
be sued.
Sec 5 D • The Central Government shall appoint
Appointment of officers. • Central Provident Fund Commissioner who
shall be the chief executive officer of the
Central Board and shall be subject to the general
control and superintendence of that Board.
• Financial Adviser and Chief Accounts Officers
to assist the Central Provident Fund
Commissioner in the discharge of his duties

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• Additional Central Provident Fund
Commissioners, Deputy Provident Fund
Commissioners, Regional Provident Fund
Commissioners, Assistant Provident Fund
Commissioners and] such other officers and
employees as it may consider necessary for the
efficient administration of the Pension Scheme
and the Insurance Scheme
• No appointment to shall be made without
consultation with the Union Public Service
Commission except
(a) for a period not exceeding one year; or
(b) if the person to be appointed is at the time of his
appointment— (i) a member of the Indian
Administrative Service, or (ii) in the service of the
Central Government or a State Government or the
Central Board in a [Group A or Group B post].
Sec 6 • Contribution of employer: 12% of basic wages
Contributions and (DA & Retaining allowance)
matters which may be • Contribution of Employee: 12 % of basic wage
provided for in Schemes • any employee wants to pay more than 12% of his
basic wages can do
• subject to the condition that the employer shall
not be under an obligation to pay any
contribution over and above his contribution
payable.
For Example:
If the monthly salary of a person is Rs.30,000. The
contributions calculated are as follows-
• 12% of Rs.30,000 (Employee share)= Rs.3,600
• 3.67% (in EPF) of Rs.30,000 (Employer’s share)=
Rs.1,101
• 8.33% (in EPS) of Rs.30,000 (Employer’s share)=
Rs.2,499
• Total= Rs.7200/-
Sec 6 A • The Central Government may, by notification in
Employees’ Pension the Official Gazette, frame a scheme to be called
Scheme, 1995 the Employees
Pension Scheme for the purpose of providing for
(a) superannuation pension, retiring pension or
permanent total disablement pension to the employees
of any
establishment or class of establishments to which this
Act applies; and
(b) widow or widower’s pension, children pension or
orphan pension payable to the beneficiaries of such
employees.
• Employer Contribution 8.33%(out of 12% of EPF)
on basic wages + DA+ Retaining allowance
• Central Govt Contribution 1.16%
Employee eligibility

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• who are part of EPF automatically become part
of EPS
• Those who where member of family pension
scheme
• Employee employed by contractor : salary or
wage ceiling is 15000
• the maximum limit of contribution to EPS has
been raised to INR 1,250
• New entrants to the PF scheme, joining on or
after 1 September 2014 and whose basic salary
is more than INR 15,000 per month, will not be
able to join the EPS
• On completion of 10 years of service and
attained the age of 50 yrs for early pension and
58 yrs for regular pension
• On death given to nominee
Sec 6 C The Central Government may, by notification in the
Employees’ Deposit Official Gazette, frame a scheme to be called the
linked Insurance Employees Deposit-linked Insurance Scheme for the
Scheme, 1976 purpose of providing life insurance benefits to the
employees of any establishment or class of
establishments to which this Act applies.
• main objective of EPFO behind this scheme was
to ensure that the family of members get
financial assistance in case of death of the
member The Insurance Scheme may provide for
all or any of the matters specified in Schedule IV.
Contribution
• The employer shall pay into the Insurance Fund
such further sums of money, not exceeding one-
fourth of the contribution, Employer
Contribution: 0.5 % of wages(Basic, DA, Cash
value of food concession & retaining allowance)
the employer shall pay into the Insurance Fund
Administrative charges : 0.50% (amendment 2018)
subject to a minimum sum of 75 rupees per month for
every non-functional establishment having no
contributory member and 500 rupees per month per
establishment for other establishments.
Benefits • lump-sum payout in the event of the death of the
insured person. If no nominee or beneficiary is
registered, then the amount would be paid to the
legal heir.
The pay-out to be awarded will be calculated as under:
• claim amount under ELDI is 30 times the
average monthly salary (Capped to 15000) in
the past 12 months subject to a maximum of 6
lakh (4.5 lakh basic + 1.5 lakh bonus)
• Provided that the assurance benefit shall not be
less than two lakh and fifty thousand rupees:

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• Provided further that the assurance benefit
shall not exceed six lakh rupees.
The insurance amount that the heirs of a deceased
member get is calculated as
30 times the average monthly salary in the last 12
months of employment. The maximum average
monthly salary of an employee is capped at ₹ 15,000
So, 30 times the salary comes to be around to be 30 x
₹ 15,000 = ₹ 4,50,000
A bonus amount of up to ₹ 1,50,000 is also paid to the
claimant under this scheme Thus, the total amount
payable under this scheme to the beneficiary is ₹
6,00,000.
Sec 7A Determination of • The Central Provident Fund
moneys due from Commissioner, any Additional Central
employers Provident Fund Commissioner, any
Deputy Provident Fund Commissioner,
any Regional Provident Fund
Commissioner, or any Assistant Provident
Fund Commissioner may, by order,-
(a) in a case where a dispute arises regarding the
applicability of this Act to an establishment, decide
such dispute; and
(b) determine the amount due from any employer
under any provision of this Act, the Scheme or
the [Pension] Scheme or the Insurance Scheme, as the
case may be, and for any of the aforesaid purposes may
conduct such inquiry as he may deem necessary
• The officer conducting the inquiry under
sub-section (1) shall, for the purposes of
such inquiry, have the same powers as
are vested in a court under the Code of
Civil Procedure, 1908 (5 of 1908)
(a) enforcing the attendance of any person or examining
him on oath;
(b) requiring the discovery and production of
documents;
(c) receiving evidence on affidavit
(d) issuing commissions for the examination of
witnesses;
Sec 7A : Determination Where the employer, employee or any other person
of moneys due from required to attend the inquiry under sub-section (1)
employers fails to attend such inquiry without assigning any
valid reason or fails to produce any document or to file
any report or return when called upon to do so, the
officer conducting the inquiry may decide the
applicability of the Act or determine the amount due
from any employer, as the case may be, on the basis of
the evidence adduced during such inquiry and other
documents available on record.

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(4) Where an order under sub-section (1) is passed
against an employer ex parte, he may, within three
months from the date of communication of such order,
apply to the officer for setting aside such order and if
he satisfies the officer that the show cause notice was
not duly served or that he was prevented by any
sufficient cause from appearing when the inquiry was
held, the officer shall make an order setting aside his
earlier order and shall appoint a date for proceeding
with the inquiry.
Sec 7 D • The Industrial Tribunal constituted by the
Tribunal Central Government of the Industrial Disputes
Act, 1947 shall, be the Tribunal for the purposes
of this Act and the said Tribunal shall exercise
the jurisdiction, powers and authority conferred
on it by or under this Act
Sec 8 B Where any amount is in arrear officer may issue, to the
Issue of certificate to the Recovery Officer, a certificate under his signature
Recovery Officer specifying the amount of arrears and the Recovery
Officer, on receipt of such certificate, shall proceed to
recover the amount specified therein from the
establishment or, as the case may be, the employer by
one or more of the modes mentioned below:—
(a) attachment and sale of the movable or immovable
property
(b) arrest of the employer and his detention in prison;
(c) appointing a receiver for the management of the
movable or immovable properties of the establishment
or, as the case may be, the employer.
Sec 12 : Employer not No employer in relation to [an establishment] to which
to reduce wages, etc any [Scheme or the Insurance Scheme] applies shall, by
reason only of his liability for the payment of any
contribution to [the Fund or the Insurance Fund] or any
charges under this Act or the [Scheme or the the
Insurance Scheme], reduce, whether directly or
indirectly, the wages of any employee to whom the
[Scheme or the Insurance Scheme] applies or the total
quantum of benefits in the nature of old age pension,
gratuity [Provident Fund or Life Insurance] to which the
employee is entitled under the terms of his
employment, express or implied.]
Inspectors 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 the
Scheme, the Pension Scheme or the Insurance
Scheme, and may define their jurisdiction.
Sec 14 : Penalties avoiding any payment to be made by himself the
Scheme or the Insurance Scheme
• Imprisonment extended to 1 year and fine 500 or
both

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An employer who contravenes, or makes default in
complying
• Imprisonment of 1year to 3 years and fine of
10000 rs
• default in payment of the employees
contribution which has been deducted by the
employer from the employees‟ wages : 6 months
imprisonment and fine rs. 50
Employees'Deposit-linked Insurance Scheme.
An employer who contravenes, or makes default in
complying with, the provisions of section 6C,
• punishable with imprisonment for a term which
may extend to 1 year but which shall not be less
than 6 months and shall also be liable to fine
which may extend to 5000
• person who contravenes, or makes default in
complying with,
• shall be punishable with imprisonment for a
term which may extend one year, or with with
fine which may extend to four thousand rupees,
or with both
Rate of EPF Contribution
Monthly Employee Employees’ Employees'

contribution provident fund Deposit Linked Pension Scheme
Insurance
Scheme
By Employee 12% of Basic 0.50% of Basic 8.33% (out of 12%
Wages, Dearness Wages, Dearness contribution
Allowance, Cash Allowance, Cash payable under
Value of Food Value of Food EPF) subject to
Concession & Concession & maximum of Rs.
Retaining Retaining 541/-
Allowance Allowance (subject
plus maximum wage
Administrative limit of Rs.
Charges 6,500/-)
plus
Administrative
Charges
By Employee 12% of Basic NIL NIL
Wages, Dearness
Allowance, Cash
Value of Food
Concession &
Retaining
Allowance
By Central NIL NIL 1.16%
Government

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………………………………………………………………………………………………………
The Payment of Bonus Act, 1965

INTRODUCTION
Payment of Bonus Act, 1965, was enacted during the THIRD FIVE-YEAR PLAN
(1961–65 )
(1) An Act to provide for the payment of bonus to persons employed in certain
establishments and for matters connected therewith

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This Act may be called the Payment of Bonus Act, 1965.
(2) It extends to the whole of India
(3) It shall apply to—
(a) every factory; and
(b) every other establishment in which 20 or more persons are employed on any day
during an accounting year
Sections
Sec 2(1) Corporation
Accounting Year the year ending on the day on which the books and
accounts of the corporation are to be closed and balanced
Company
the period in respect of which any profit and loss account
of the company laid before it in annual general meeting is
made up, whether that period is a year or not
In other Cases
(a) the year commencing on the 1st day of April
b) if the accounts are closed and balanced on any day
other than the 31st day of March, then, at the option of
the employer, the year ending on the day on which its
accounts are so closed and balanced
Sec 2(4) Allocable Surplus is money distributed as bonus

Allocable Surplus • employer, being a company (other than banking
company)which has not made the arrangements
prescribed under the Income-tax Act for the
declaration and payment within India of the
dividends payable out of its profits in accordance
with the provisions of section 194 of that Act,67%
of the available surplus in an accounting year;
• in any other case, 60% of such available surplus
Sec 2(5) Central Govt.
Appropriate Govt in relation to an establishment in respect of which the
appropriate Government under the Industrial Disputes
Act,1947 (14 of 1947), is the Central Government
State Govt.
in relation to any other establishment
Sec 2(6) means the available surplus computed under section 5
Available surplus
Sec 2(7) • means an interim or a final determination of any

Award industrial dispute or of any question relating
thereto by any Labour Court, Industrial Tribunal or
National Tribunal constituted under the Industrial
Disputes Act, 1947
• by any other authority constituted under any
corresponding law relating to investigation and

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settlement of industrial disputes in force in a State
and includes an arbitration award
Sec 2 (8) • Banking company as defined in section 5 of the
Banking Company Banking Companies Act, 1949
• includes the State Bank of India, any subsidiary
bank
• any co-operative bank
• any other banking institution which may be
notified in this behalf by the Central Government;
Sec 2 (9) any company as defined is section 3 of the Companies
Company Act, 1956 (1 of 1956), and includes a foreign company
within the meaning of section 591 of that Act;
Sec 2(10) means a society registered or deemed to be registered
co-operative society under the Co-operative Societies Act, 1912 (2 of 1912), or
any other law for the time being in force in any State
relating to co-operating societies
Sec 2(10) means a society registered or deemed to be registered
co-operative society under the Co-operative Societies Act, 1912 (2 of 1912),
or any other law for the time being in force in any State
relating to co-operating societies
Sec 2(11) means anybody corporate established by or under any
Corporation Central, Provincial or State Act but does not include a
company or a co-operative society
Sec 2(12) (a)any Tax chargeable under—
Direct Tax (i) the Income-tax Act;
(ii) the Super Profits Tax Act, 1963 (14 of 1963);
(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);
(iv) the agricultural income-tax law; and
(b) any other tax which, having regard to its nature or
incidence, may be declared by the Central Government, by
notification in the Official Gazette, to be a direct tax for the
purposes of this Act
Sec 2(13) • means any person (other than an apprentice)
Employee employed on a salary or wage not exceeding 21000
per mensem in any industry
• to do any skilled or unskilled manual, supervisory,
managerial, administrative, technical or clerical
work
• for hire or reward, whether the terms of
employment be express or implied;
Sec 2(14) Factory

Employer • Owner, occupier, agent, legal heir, Manager
Other Cases
• Person with ultimate control over the affairs of
business
Sec 2(15) means any establishment other than an establishment in
Establishment in public sector
private sector

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Sec 2 (16) (a) a government company in the Companies Act, 1956
Establishment in (b) a corporation in which not less than forty 40% of its
public sector capital is held (whether singly or taken together) by—
(i) the Government; or
(ii) the Reserve Bank of India; or
(iii) a corporation owned by the Government or the Reserve
Bank of India;
Sec 2(21) Salary or Includes
wage • all remuneration (other than remuneration in
respect of overtime work) capable of being
expressed in terms of money
• the terms of employment, express or implied, were
fulfilled, be payable to an employee in respect of his
employment or of work done in such employment
• includes dearness allowance (that is to say, all cash
payments, by whatever name called, paid to an
employee on account of a rise in the cost of living)
Does not Includes:
(i) any other allowance which the employee 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 foodgrains or other
articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production and
attendance bonus);
(v)pension fund or provident fund
(vi) any retrenchment compensation or any gratuity or
other retirement benefit payable or any ex gratia payment
made to him;
(vii) any commission payable to the employee.
Sec 3 • Where an establishment consists of different
Establishments to department or undertakings or has branches,
include departments, whether situated in the same place or in different
undertakings and places, all such departments or undertakings or
branches branches shall be treated as parts of the same
establishment for the purpose of computation of
bonus under this Act.
• where for any accounting year a separate balance-
sheet and profit and loss account are prepared and
maintained in respect of any such department or
undertaking or branch, then, such department or
undertaking or branch shall be treated as a
separate establishment for the purpose of
computation of bonus,
Sec 4 The gross profits derived by an employer from an
Computation of gross establishment in respect of any accounting year shall
profits (a) in the case of a banking company, be calculated in the
manner specified in the First Schedule;

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(b) in any other case, be calculated in the manner specified
in the Second Schedule.
Sec 5 Computation of The available surplus in respect of any accounting year
available surplus shall be the gross profits for that year after deducting
therefrom the sums referred to in section 6:
(a) the gross profits for that accounting year after
deducting therefrom the sums referred to in section 6;
and (b) an amount equal to the difference between—
(i) the direct tax, calculated in accordance with the
provisions of section 7, in respect of an amount equal to
the gross profits of the employer for the immediately
preceding accounting year; and
(ii) the direct tax, calculated in accordance with the
provisions of section 7, in respect of an amount equal to
the gross profits of the employer for such preceding
accounting year after deducting therefrom the amount of
bonus which the employer has paid or is liable to pay to
his employees in accordance with the provisions of this Act
for that year.
Sec 6 • any amount by way of depreciation
Sums deductible • any amount by way of development rebate or
from gross profits investment allowance or development allowance
which the employer is entitled to deduct from his
income under the income-tax Act;
• any direct tax which the employer is liable to pay
for the accounting year in respect of his income,
profits and gains during that year
Sec 7 Any direct tax payable by the employer for any accounting
Calculation of direct year shall be calculated at the rates applicable to the
tax payable by the income of the employer for that year, namely: —
employer (a) in calculating such tax no account shall be taken of—
(i) any loss incurred by the employer in respect of any
previous accounting year
(ii) any arrears of depreciation which the employer is
entitled
(iii) any exemption conferred on the employer.
Gross Profit - Sums Deductible
(depreciation, direct TAX, Investment) = Available Surplus
Sec 8 • Every employee shall be entitled to be paid by his
Eligibility for bonus employer in an accounting year, bonus, he has
worked in the establishment for not less than 30
working days in that year
• If person is not eligible for bonus , but company
wants to give, than can give Ex-Gratia
an employee shall be disqualified from receiving bonus
Sec 9 Disqualification under this Act, if he is dismissed from service for—
for bonus (a) fraud; or
(b) riotous or violent behaviour while on the premises of
the establishment; or
(c) theft, misappropriation or sabotage of any property of
the establishment.

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Sec 10 • every employer shall be bound to pay to every
Payment of minimum employee in respect of the accounting year
bonus. commencing on any day
• a minimum bonus which shall be 8.33 per cent. of
the salary of wage earned by the employee during
the accounting year or 100 whichever is higher
•whether or not the employer has any allocable

surplus in the accounting year
• where an employee has not completed 15 years of
age at the beginning of the accounting year(100 is
replaced by 60 Rs)
Formula for Calculating Minimum Bonus
Bonus Payable = Rate of Bonus/100 * Wage
Ceiling * 12 (Accounting Year)
= 8.33/100*7000* 12=699
Wage Ceiling is fixed by appropriate govt(Sec 12)
Sec 11 • the allocable surplus exceeds the amount of
Payment of maximum minimum bonus payable to the employees
bonus • be bound to pay maximum of 20% . of such salary
or wage.
• Remaining surplus carry for next year
• Ex: Wage is 20000 pm
• Bouns rate is suppose 10%
• Bonus payable = 10/100 *7000*12= 8400
Formula for Calculating Maximum Bonus
Bonus Payable = Rate of Bonus/100 * Wage
Ceiling * 12 (Accounting Year)
10/100*7000* 12=8400
Wage ceiling is fixed by appropriate govt(sec 12)
Sec 12 • Where the salary or wage of an employee exceeds

Calculation of bonus 7000 or the minimum wage for the scheduled
with respect to employment, as fixed by the appropriate
certain employees Government, whichever is higher per mensem
• the bonus payable calculated as if his salary or
wage were 7000 or the minimum wage for the
scheduled employment, as fixed by the appropriate
Government, whichever is higher per
mensem.(Amendment 2015)
Sec 13 • Where an employee has not worked for all the
Proportionate working days in an accounting year,
reduction in bonus in • the minimum bonus of one hundred rupees or, as
certain cases. the case may be, of sixty rupees, if such bonus is
higher than 8.33 per cent. of his salary or wage for
the days he has worked in that accounting year,
shall be proportionately reduced.
Sec 14 an employee shall be deemed to have worked in an
establishment in any accounting year also on the days on
which—

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Computation of (a) he has been laid off under an agreement
number of working (b) he has been on leave with salary or wage;
days. (c) he has been absent due to temporary disablement
caused by accident arising out of and in the course of his
employment; and
(d) the employee has been on maternity leave with salary
or wage, during the accounting year.
Sec 15 : Set on and Set on
set off of allocable • In accounting year, the allocable surplus exceeds
surplus the amount of maximum bonus payable to the
employees in the establishment
• The max bonus limit of 20%. of the total salary or
wage
• Excess be carried forward for being set on in the
succeeding accounting year and so on.
• Up to and inclusive of the 4TH accounting year to
be utilized for the purpose of payment of bonus
Set Off
• In any accounting year, there is no available
surplus or the allocable surplus in respect of that
year falls short of the amount of minimum bonus
payable to the employees
• there is no amount of sufficient amount carried
forward and set on which could be utilised for the
purpose of payment of the minimum bonus, then,
• Such minimum amount or the deficiency, as the
case may be, shall be carried forward for being set
off in the succeeding accounting year
• up to and inclusive of the fourth accounting year

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Sec 16 Sec 16(1A)
Special provisions • For new (location, management, ownership)
with respect to establishment, for first 5 accounting years
certain • bonus shall be payable only in respect of the
establishments. accounting year in which the employer derives
profit
• After all tax, depreciation, expenses incurred
• No SET ON or SET OFF
Sec 16 (1B)
• for the 6TH accounting year
• set on or set off, shall be made in the manner
illustrated in the Fourth Schedule taking into
account the excess or deficiency,
• For the allocable surplus set on or set off in respect
of the fifth and sixth accounting years
• For 7th Year for of the allocable surplus set on or set
off in respect of the fifth, sixth and seventh
accounting years
Sec 16 (1C)
• for the 8TH accounting year
• such establishment, the provisions of section 15
shall apply in relation to such establishment as
they apply in relation to any other establishment.

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Sec 17 (a) an employer has paid any puja bonus or other
Adjustment of customary bonus to an employee; or
customary or (b) an employer has paid a part of the bonus payable to an
interim bonus employee before the date on which such bonus becomes
against bonus payable,
payable the employer shall be entitled to deduct the amount of
bonus so paid from the amount of bonus payable by him
employee shall be entitled to receive only the balance
Sec 18 • an employee is found guilty of misconduct causing
Deduction of certain financial loss to the employer
amounts from bonus • lawful for the employer to deduct the amount of loss
payable under the from the amount of bonus payable by him to the
Act employee, in same accounting year
Sec 19 a) where there is a dispute regarding payment of bonus

Time-limit for pending within a 1 month from the date on which the
payment of bonus award becomes enforceable or the settlement comes into
operation, in respect of such dispute;
(b) in any other case, within a period of 8 months from
the close of the accounting year
• Appropriate Govt upon an application made to it by
the employer and for sufficient reasons, by order,
extend the said period but that the total period so
extended shall not in any case exceed 2 years
Sec 20 • If in any accounting year an establishment in public
Application of Act sector sells any goods produced or manufactured
to establishments in by it or renders any services, in competition with an
public sector in establishment in private sector
certain cases. • the income from such sale or services or both is not
less than twenty per cent. of the gross income of the
establishment in public sector for that year,
• the provisions of this Act shall apply in relation to
such establishment in public sector as they apply
in relation to a like establishment in private sector
Sec 21 • Where any money is due to an employee by way of
Recovery of bonus bonus from his employer under a settlement or an
due from an award or agreement
employer • the employee himself or any other person
authorised by him in writing in this behalf, or in the
case of the death of the employee, his assignee or
heirs may,
• make an application to the appropriate Government
for the recovery of the money due to him
• 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
• application shall be made within one year from the
date on which the money became due to the
employee from the employer

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• if the appropriate Government is satisfied that the
applicant had sufficient cause for not making the
application within the said period, can be accepted
after 1 year
Sec 22 • Where any dispute arises between an employer and
Reference of his employees with respect to the bonus payable
disputes under the • such dispute shall be deemed to be an industrial
Act dispute within the meaning of the Industrial
Disputes Act, 1947
Sec 26 • Every employer shall prepare and maintain such
Maintenance of registers, records and other documents in such
registers, records, form and in such manner as may be prescribed
etc
Sec 27 • The appropriate Government may, by notification in

Inspectors the Official Gazette, appoint such person as it
thinks fit to be Inspectors
Sec 28 (a) contravenes any of the provisions of this Act or any rule
Penalty made thereunder; or
(b) to whom a direction is given or a requisition is made
under this Act fails to comply with the direction or
requisition
(c)punishable with imprisonment for a term which may
extend to 6 months, or with fine which may extend to
1000, or with both
Sec 31 (A) • where an agreement or a settlement has been
Special provision with entered into by the employees with their employer
respect to payment of • for payment of an annual bonus linked with
bonus linked with production or productivity in lieu of bonus based on
production or profits payable
productivity. • such employees shall be entitled to receive bonus
due to them under such agreement or settlement,
• such employees shall not be entitled to be paid such
bonus in excess of twenty per cent. of the salary or
wage earned by them during the relevant
accounting year
Sec 32 i) general insurance business and the Life Insurance
Act not to apply to Corporation of India;
certain classes of (ii) seamen of the Merchant Shipping Act, 1958
employees. (iii) employees registered or listed under any scheme made
under the Dock Workers (Regulation of Employment) Act,
1948 (9 of 1948), and employed by registered or listed
employers
(iv) under the authority of any department of the Central
Government or a State Government or a local authority;
(v) employees employed by—
(a) the Indian Red Cross Society or any other institution of
a like nature (including its branches);
(b) universities and other educational institutions;

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(c) institutions (including hospitals, chambers of
commerce and social welfare institutions) established not
for purposes of profit;
(viii) the Reserve Bank of India;
Sec 32 ix) employees employed by—
Act not to apply to (a) the Industrial Finance Corporation of India;
certain classes of (b) any Financial Corporation established
employees. (c) the Deposit Insurance Corporation;
(d) the National Bank for Agriculture and Rural
Development;
(e) the Unit Trust of India;
(f) the Industrial Development Bank of India;
fa) the Small Industries Development Bank of India ,(ff) the
National Housing Bank;
(xi) employees employed by inland water transport
establishments operating on routes passing through any
other country.
Sec 36 • If the appropriate Government, having regard to the
Power of exemption financial position and other relevant circumstances
of any establishment or class of establishment, is of
opinion that it will not be in public interest to apply
all or any of the provisions of this Act
• by notification in the Official Gazette, exempt for
such period as may be specified therein and subject
to such conditions as it may think fit to impose,
such establishment or class of establishments from
all or any of the provisions of this Act.
Sec 38 • The Central Government may, subject to the
Power to make rules condition of previous publication, by notification in
the Official Gazette, make rules to carry out the
provisions of this Act.
• Every rule made 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.
…………………………………………………………………………………………………………..
Employees’ State Insurance Act, 1948
****The recommendations of B. P. Adarkar

Objective: -
The Employees’ State Insurance Act 1948 (the ESI Act) provides for
medical, cash, maternity, disability and dependent benefits to the Insured
Persons under the Act. The ESI Act is administered by Employees’ State

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Insurance Corporation (ESIC). Benefits provided under the ESI Act are funded
by the contributions made by the employers and the employees.
****Current ESIC contribution Rate:
Employers’ share: 3.25%
Employees share: 0.75%
SCOPE: -
➢ It applies to all factories (including those belonging to the government)
other than seasonal factory. With effective from 2011, benefits
extended to all shop, hotels, restaurants, motor transport, cinemas
wherein 10 or more persons are employed.
➢ Exemption: -Factories with less than 10 persons, Seasonal Factories,

Mines, a railway running sheds. The Act does not apply to a factory or
establishment belonging to or under the control of the government
whose employees are in the receipt of benefits substantially similar or
superior to the benefits provided under this Act.
➢ The central government in consultation with the ESI Corporation, and

the state government with the approval of the central government may
extend any or all provisions of the Act to any other establishment or
class of establishments— industrial, commercial, agricultural or
otherwise, but one-month prior notification in the official gazette
is necessary
➢ The wage-ceiling for coverage under the ESI Act has been enhanced to
21,000 per month.
➢ An employer/establishment covered under ESI Act is exempted from

Maternity Benefit Act and Employees Compensation Act.
Important Definitions
1) Appropriate Government
The definition of “appropriate government” divides powers between the
Central and State governments effectively. The Central government is
appropriate in cases of establishments that the Central government controls.

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It is the appropriate government for railway administration, major ports,
mines, and oil fields. In all other cases, the appropriate government is the
State government.
2) Confinement
Pregnancy which leads to the birth of a living child is called “confinement”
under this Act. It can also mean the birth of a child (living or dead) after 26
weeks of pregnancy.
3) Contribution
Principal employers under this Act have to pay a sum of money to the
Employees State Insurance Act Corporation according to relevant provisions.
This money is basically later payable to employees by the ESI Corporation for
their benefits. Every employer to whom the Act applies has to make
this contribution.
4) Dependant
Dependant means any of the following relatives of a deceased insured person,
namely:
(i) a widow legitimate or adopted son who has not attained the age of
25 years, an unmarried legitimate or adopted daughter or a widowed
mother;
(ii) if wholly dependent on the earnings of the insured person at the time
of his death, legitimate or adopted son or daughter who has attained
the age of 25 and is infirm;
(iii) if wholly or in part dependent on the earnings of the insured person
at the time of his death,
o parent other than a widowed mother,
o a minor illegitimate son, an unmarried
illegitimate daughter, or a daughter legitimate
or adopted or illegitimate if married and a minor
or if widowed and a minor,
o a minor brother or an unmarried sister or a
widowed sister if a minor,
o a widowed daughter-in-law, (e) a minor child of
a predeceased son,
o a minor child of a predeceased daughter where
no parent of the child is alive,
o a paternal grandparent if no parent of the
insured person is alive

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According to the Act, dependants are certain relatives of a deceased worker.

These include his widow, a son below 25 years of age, an unmarried daughter
and his widowed mother.
A son/daughter above 25 years can also be a dependant if he/she is wholly
dependent on the worker. In certain cases, dependants can also be a minor
illegitimate child, minor sibling, a parent other than widowed mother, etc.
5) Employment Injury
An employee can receive financial support under this Act for specific injuries
that occur in employment only.
Hence, the Act refers to them as “employment injuries”.
These injuries must be a result of an accident or occupational disease arising
in the course of employment. It is immaterial whether the workers contract
these occupational diseases within India or outside.
6) Employee
Employee means any person employed for wages in or in connection with the
work of a factory or establishment covered under the Act and
(i) who is directly employed by the principal employer,
(ii) who is employed by or through an immediate employer on the premises
of the factory or establishment or under the supervision of the principal
employer or his agent,
(iii) whose services are temporarily hired to the principal employer by the
person with whom the person entered into a contract of service.
(iv) but does not include: (i) Any member of the Indian naval, military or
air force, (ii) Any person so employed whose wages (excluding
remuneration for overtime work) exceed such wages as prescribed by
the central government (presently, the maximum wage ceiling is
21,000 a month.
(v) There are certain employees who are not liable to pay a contribution to
the ESI Corporation under this Act. These employees are called as
exempted employees.
7) Family
In short “family” is very similar to the definition of dependants. It includes a
worker’s spouse, minor child, unmarried daughter, dependent parents, minor
siblings, etc.
8) Factory

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A “factory” means any premises (or its precincts) wherein 10 or more
employees work or have been working. These workers should be in
employment for the preceding twelve months.
Furthermore, some manufacturing process must take place on such
premises. Mines or railway running sheds, however, cannot come under the
definition of factories.
9) Insured Person
An insured person under this Act is basically an employee to
whom contribution is payable. Furthermore, he can claim all other benefits
under the Act.
10) Principal Employer
A principal employer is generally the owner or occupier of a factory to which
the Act applies. It can also include the owner’s managing agent or factory
manager and legal representative of a deceased owner/occupier.
In the case of departments of the Central government, the principal employer
is the department’s head. In all other establishments, the person in charge of
supervision and control is usually the principal employer.
11) Sickness
Sickness basically means a condition for which an employee has to undergo
medical treatment. He may even have to abstain from working during the
duration of such sickness.
12) Seasonal Factory
There are certain kinds of factories which work seasonally for some specific
purposes only. These include manufacturing processes like cotton ginning,
cotton/jute pressing, manufacturing or coffee, etc.
Furthermore, this includes a factory that works for not more than 7 months
in a year in similar pursuits.
13) Wages
Wages include remuneration payable to an employee in cash under the terms
of an express or implied contract of employment.
It may also include all other amounts payable to employees as wages under
other laws. However, wages do not include pension, traveling allowances,
gratuity and other similar sums.
14) Permanent Partial/Total Disablement

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The ESI Act contains a few categories of disablements for which employees
can claim compensation. These may be either permanent or temporary.
Permanent disablements may further be either partial or total.
Permanent disablement means disablement of permanent nature which
affects an employee’s earning capacity. Part II of the Second Schedule deals
with these injuries, whereas Part I describes permanent total injuries.
Sec. 41-The principal employer is entitled to recover the amount of both the
employee’s and employer’s contributions paid in respect of an employee
employed by or through an immediate employer. The immediate employer is
required to maintain a register of employees employed by or through them
The section 46 of the Act envisages following social security benefits: -

1. Sickness benefit
2. Maternity benefit
3. Disablement benefit
4. Dependants’ benefit
5. Medical benefit
6. Funeral expenses
7. Confinement expenses
8. Vocational rehabilitation
9. Physical rehabilitation
10. Unemployment allowances and skill-upgradation training
Standard Benefit Rate

All the major cash benefits under the scheme are related to Standard Benefit
Rate: -
Standard Benefit Rate = Total Wages paid during the Contribution Period /
Number of Days for which these Wages were Paid
****An important point to be noted here is that, whereas one of the qualifying
conditions for the sickness, maternity and medical benefits is that necessary
contributions must have been paid during the prescribed preceding period.
The disablement and dependants’ benefits and funeral expenses are available

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without any such qualifying conditions. As the Employees’ Compensation Act
provides for the payment of compensation without requiring any contribution
from the employees, the Employees’ State Insurance Act, 1948, also does not
require the employees to pay contributions for becoming entitled to
disablement and dependants’ benefits and funeral expenses.
Medical Benefit :
➢ Full medical care is provided to an Insured person and his family

members from the day he enters insurable employment.
➢ There is no ceiling on expenditure on the treatment of an Insured

Person or his family member. Medical care is also provided to retired
and permanently disabled insured persons and their spouses on
payment of a token annual premium of Rs.120/-.
Sickness Benefit (SB) :
➢ Sickness Benefit in the form of cash compensation at the rate of 70 per

cent of wages is payable to insured workers during the periods of
certified sickness for a maximum of 91 days in a year.
➢ In order to qualify for sickness benefit the insured worker is required to

contribute for 78 days in a contribution period of 6 months.
1. Extended Sickness Benefit (ESB) : SB extendable upto two years in the case
of 34 malignant and long-term diseases at an enhanced rate of 80 per cent of
wages.
2. Enhanced Sickness Benefit : Enhanced Sickness Benefit equal to full wage

is payable to insured persons undergoing sterilization for 7 days/14 days for
male and female workers respectively.
(c) Maternity Benefit (MB) :
➢ Maternity Benefit for confinement/pregnancy is payable for Twenty Six

(26) weeks, which is extendable by further one month on medical advice
at the rate of full wage subject to contribution for 70 days in the
preceding Two Contribution Periods.
(d) Disablement Benefit
➢ Temporary disablement benefit (TDB) : From day one of entering

insurable employment & irrespective of having paid any contribution in
case of employment injury. Temporary Disablement Benefit at the rate
of 90% of wage is payable so long as disability continues.

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➢ Permanent disablement benefit (PDB) : The benefit is paid at the rate of
90% of wage in the form of monthly payment depending upon the extent
of loss of earning capacity as certified by a Medical Board
(e) Dependants Benefit (DB) : DB paid at the rate of 90% of wage in the form
of monthly payment to the dependants of a deceased Insured person in cases
where death occurs due to employment injury or occupational hazards.
(f) Other Benefits :
1. Funeral Expenses: An amount of Rs.15,000/- is payable to the

dependents or to the person who performs last rites from day one of
entering insurable employment.
2. Confinement Expenses: An Insured Women or an I.P.in respect of
his wife in case confinement occurs at a place where necessary
medical facilities under ESI Scheme are not available.
In addition, the scheme also provides some other need-based benefits to insured
workers.
1. Vocational Rehabilitation: To permanently disabled Insured

Person for undergoing VR Training at VRS.
2. Physical Rehabilitation: In case of physical disablement due to
employment injury.
3. Old Age Medical Care: For Insured Person retiring on attaining the
age of superannuation or under VRS/ERS and person having to leave
service due to permanent disability insured person & spouse on
payment of Rs. 120/- per annum.
Rajiv Gandhi Shramik Kalyan Yojana:
This scheme of Unemployment allowance was introduced w.e.f. 01-04-2005.
An Insured Person who become unemployed after being insured three or more
years, due to closure of factory/establishment, retrenchment or permanent
invalidity are entitled to :-
• Unemployment Allowance equal to 50% of wage for a maximum

period of upto Two Years.
• Medical care for self and family from ESI Hospitals/Dispensaries
during the period IP receives unemployment allowance.
• Vocational Training provided for upgrading skills - Expenditure on
fee/travelling allowance borne by ESIC.
Atal Beemit Vyakti Kalyan Yojana (ABVKY) :
➢ This scheme is a welfare measure for employees covered under ESI Act,
1948, in the form of relief payment upto 90 days, once in a lifetime.

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➢ The Scheme was introduced 2018 on pilot basis for a period of two years
initially.
➢ The rate of unemployment relief under the scheme to 50% of wages,

provided the Insured Person should have been in insurable employment
for a minimum period of two years immediately before her/his
unemployment and should have contributed for not less than 78 days
in the contribution period immediately preceding to unemployment and
minimum 78 days in one of the remaining three contribution periods in
two years prior to unemployment.
Incentive to employers in the Private Sector for providing regular employment to the
persons with disability :
• Minimum wage limit for Physically Disabled Persons for availing

ESIC Benefits is 25,000/-.
• Employers' contribution is paid by the Central Government for 3
years.
**** "FULL" Medical Care i.e., all facilities as for IPs including
hospitalisation.
Benefits to Retired IPs
Medical Benefit to Retired Insured Persons and Permanent Disabled Insured

Persons: -
On payment of Rs.10/- P.M. in lump sum for one year in advance, Medical
Benefit can be provided (under Section 56 of the Act) to:
i. An Insured Person and his or her spouse who leaves insurable

employment on attaining the age of superannuation after being
insured for not less than five years, till the period for which
contribution is paid.
ii. An Insured Person and his/her spouse who ceases to be in insurable
employment on account of permanent disablement due to
employment injury shall be entitled to medical benefit.
Compulsory ESI Registration Of Employees

➢ As per the new provision, the employees of the organized sector are now
compulsorily required to obtain ESIC registration online within 10 days
from the date of their appointment.
➢ The employers are now required to provide the ESI registration Card to
all their employees, which will serve as the evidence of ESI registration.
➢ As per the ESI Act, a certain contribution has to be deposited against
employees as well as employers within the due date. Now a new rule

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suggests that ESI contribution against employees has to be deposited
within 42 days from the end of the month of the ESI contribution. The
employer shall not be able to deposit the employee’s ESI contribution
after 42 days, and shall have to bear the penalty of ₹10,000/-.
➢ Another new provision has now introduced a threshold limit for

employee’s ESI contribution. Accordingly, the employees whose salary
is ₹176/- per day or less need not to pay ESI contribution. Their share
of ESI contribution shall be born by the Government. Nevertheless, the
Employer shall still have to bear their share of ESI contribution.
Composition of The ESI Corporation

The ESI Corporation consists of the following members:
1. 01 chairman, appointed by the central government
2. 01 vice-chairman, appointed by the central government
3. Not more than 5 persons appointed by the central government
4. 01 person each representing each of the states in which the Act is in force
appointed by the state government concerned
5. 01 person appointed by the central government to represent the union
territories
6. 10 persons representing employers appointed by the central government in
consultation with employers’ organizations recognized for the purpose by the
central government
7. 10 persons representing employees appointed by central government in
consultation with employees’ organizations recognized for the purpose by the
central government
8. 02 persons representing the medical profession appointed by the central
government in consultation with organizations of medical practitioners
recognized for the purpose by the central government
9. 03 members of parliament (two from the Lok Sabha and one from Rajya
Sabha), elected by the members of the houses concerned
10. The Director General of the Corporation (ex-officio)
The term of office of members of the Corporation shall be 4 years.
Employees’ State Insurance Fund: -

➢ The Act provides for the creation of the Employees’ State Insurance
Fund consisting of contributions and grants, donations or gifts from the
central or state government, local authority or any private body or
individual. The fund is to be held and administered by the Corporation.

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The account is to be operated by such officers as authorized by the
standing committee with the approval of the Corporation.
Standing Committee, The Act also provides for the constitution of a standing
committee of the Corporation consisting of the following members:
1. 01 chairman appointed by the central government.
2. 03 members of the Corporation appointed by the central government.
3. 03 members of the Corporation representing three state governments
specified from time to time by the central government.
4. 8 members elected by the Corporation in the following manner
o 03 members from among the members of the Corporation
representing employers
o 03 members from among the members of the Corporation
representing employees
o 01 member from among the members of the Corporation
representing the medical profession
o 01 member from among the members of the Corporation elected by
Parliament
o The Director General of the Corporation (ex-officio).
The term of office of the elected members is 02 years from the date on which
the election is notified. Appointed members remain in office during the
pleasure of the central government
Purposes For Which ESI Fund May Be Spent

1. Payment of benefits and provision of medical treatment and attendance
2. Payment of fees and allowances to members of the Corporation, standing
committee, medical benefit council, regional boards, local committees, and
regional and local medical benefit council
3. Payment of salaries and allowances, gratuity, pensions and contributions
to provident or other benefit fund for the officers and staff of the Corporation
4. Establishment and maintenance of hospitals, dispensaries or other
institutions for provision of medical and other ancillary services
5. Payment of contributions to state government, local authority or any private
body or individual towards the cost of medical treatment or attendance
6. Defraying the cost of auditing the accounts of the Corporation and the
valuation of its assets and liabilities
7. Defraying the cost of the Employees’ Insurance Courts set up under the Act
8. Payment of any sum under any contract entered into by the Corporation,
the standing committee, or duly authorized officer

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9. Defraying the cost and other charges of instituting or defending any civil or
criminal proceedings arising out of any action taken under the Act
10. Defraying expenditure on measures for the improvement of the health and
welfare of insured persons and for the rehabilitation and re-employment of
insured persons who have been disabled or injured
Composition of the Medical Benefit Council

1. The Director General, the ESI Corporation ex-officio as chairman
2. The Director General, Health Services ex-officio as co-chairman
3. The Medical Commissioner of the Corporation (ex-officio)
4. 01 member representing each of the states in which the Act is in force,
appointed by the state government concerned
5. 03 members representing employers appointed by the central government in
consultation with such organizations of employers as recognized for the
purpose by the central government
6. 03 members representing employees appointed by the central government in
consultation with such organizations of employees as recognized for the
purpose by the central government
7. 03 members (of whom not less than one must be a woman), representing the
medical profession, appointed by the central government in consultation with
such organizations of medical practitioners as recognized for the purpose by the
central government.
Social Security Officers

The ESI Corporation is empowered to appoint social security officers for
enquiring into the correctness of particulars furnished in the returns
submitted by employers and for ascertaining the compliance of the provisions
of the Act.
**** Pandit Deendayal Upadhyay Shramev Jayate Karykram (2014)

The ESI scheme has also been brought within the ambit of labour reforms
programme envisaged under the Pandit Deendayal Upadhayay Shramev
Jayate Karyakram launched in October, 2014 by the NDA government at the
centre led by prime minister Narendra Modi. The important components of
the programme having relevance to the ESI scheme include:
(i) Setting up of Shram Suvidha Portal or labour facilitation
portal which will enable employers and employees to have easy
access to the scheme;

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(ii) Providing unified Labour Identification Number (LIN) to
units/employers with a view to simplifying business
regulations and promote e-filing of returns; and
(iii) Improving inspection and making it transparent, accountable
and convenient. The programme also envisages the
establishment of Central Analysis and Intelligence Unit under
the Ministry of Labour and Employment for picking up
establishments for inspection.
****If an employer is not satisfied with order of Social Security Officer, he may
raise further appeal within 60 days, after depositing 25% of the contribution.
****Punishment for false statement: - 2000/- or 6 months or both

****Punishment for failure to pay contributions: - 01 year, which may be
extended to 3 years of imprisonment and fine of 10,000/-
****ESI Court- a person from judicial officer or is a legal practitioner of 5
years shall be qualified to be a judge of the Employees Insurance Court.
……………………………………………………………………………………………….
The Equal Remuneration Act, 1976
Introduction
1. 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
2. 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.
3. The Government of India ratified ILO’s Equal Remuneration Convention No.
100, 1951 which calls for equal remuneration for men and women for work of
equal value
4. The Equal Remuneration Recommendation (No. 90) suggests various
procedures to be followed for ensuring a progressive introduction of the
principle
5. To give effect to this constitutional provision, the President promulgated on
the 26th. September, 1975, 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.
6. This Act may be called the Equal Remuneration Act, 1976.
Applicability & Objectives

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Applicability:
1. It extends to the whole of India.
2. 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.
Objectives:
1. To provide for the payment of equal remuneration to men and women workers
2. the prevention of discrimination, on the ground of sex, against women in the
matter of employment and for matters
3. Increase opportunity for women.
Sections
Appropriate Govt any employment carried on by or under the authority of the
Central Government
a railway administration, banking company, a mine, oilfield
or major port or any corporation established by or under a
Central Act
State Govt
Any other Establishment
Sec 2(b) • In relation to an establishment or employment
• the date on which this Act comes into force in respect
Commencement of of that establishment or employment
this Act
Sec 2 (C) • Has the meaning assigned to it in clause (f) of section

Employer 2 of the Payment of Gratuity Act, 1972
Sec 2 (d) male and female human beings, respectively, of any age
Man & women
Sec 2 (e) a notification published in the Official Gazette
Notification
Sec 2 (f) prescribed by rules made under this Act
Prescribed
Sec 2 (g) • The basic wage or salary, and any additional
Remuneration emoluments 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;
Sec 2 (h) • work in respect of which the skill, effort and
same work or responsibility required are the same
work of a similar • when performed under similar working conditions, by
nature a man or a woman

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• 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
Sec 2(i) • worker in any establishment or employment in respect
Worker of which this Act has come into force
Sec 2 (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 meanings respectively assigned
to them in that Act.
Sec 3 • The provisions of this Act shall have effect
Act to have notwithstanding anything inconsistent therewith
overriding effect 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.
Sec 4 • No employer shall pay to any worker, employed by him
Duty of employer in an establishment or employment, remuneration,
to pay equal whether payable in cash or in kind, at rates less
remuneration to favourable than those at which remuneration is
men and women paid by him to the workers of the opposite sex in
workers for same such establishment or employment for performing the
work or work of a same work or work of a similar nature.
similar nature • No employer shall, for the purpose of complying with
the provisions reduce the rate of remuneration of
any worker.
• Where 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
more than 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.
Sec 5 • No employer shall, while making recruitment for the
No same work or work of a similar nature
discrimination to • Or in any condition of service subsequent to
be made while recruitment such as promotions, training or transfer
recruiting men • Make any discrimination against women
and women Except
workers • where the employment of women in such work is
prohibited or restricted by or under any law for the
time being in force
• not affect any priority or reservation for Scheduled
Castes or Scheduled Tribes, ex-servicemen, retrenched
employees or any other class or category of persons in

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the matter of recruitment to the posts in an
establishment or employment.
Sec 6 • The appropriate Government shall constitute one or
Advisory more Advisory Committees
Committee • For the purpose of providing increasing employment
opportunities for women
• 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
• consist of not less than 10 persons, to be nominated
by the appropriate Government, of which one-half
shall be women
• The Advisory Committee shall regulate its own
procedure.
Advice given by 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
• need for providing increasing employment
opportunities for women, including part-time
employment
• other relevant factors as the Committee may think fit.
Sec 7 • The appropriate Government may, by notification,
Power of appoint officers, not below the rank of a Labour Officer,
appropriate as it thinks fit to be the authorities for the purpose of
Government hearing and deciding-
to appoint (a)complaints with regard to the contravention of any
authorities provision of this Act;
for hearing (b) claims arising out of non-payment of wages at equal rates
and to men and women workers for the same work or work of a
deciding similar nature
claims and (c)define the local limits within which each such authority
complaints shall exercise its jurisdiction.
• Authority decides if any question arises as to whether
two or more works are of the same nature or of a
similar nature
complaint or claim is made to the authority

after giving the applicant and the employer an opportunity of
being heard, and after such inquiry as it may consider
necessary, direct
a) In the case of a claim 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, that payment be made to the
worker of the amount by which the wages payable to him
exceed the amount actually paid

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b) 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.
Any employer or worker aggrieved by authority
• within 30 days from the date of the order, prefer an
appeal to such authority as the appropriate
Government may, by notification, specify in this behalf
• after hearing the appeal, confirm, modify or reverse the
order appealed against
• no further appeal shall lie against the order made by
such authority
Sec 8 • Every employer shall maintain the register and other
Duty of documents
employer to • On and from commencement of the act
maintain
register
• Appropriate Govt. Appoint the Inspector
Sec 9 • For making the investigation related to provision of act
Inspector • Inspector is public servant.
• Inspector can enter, at any reasonable hours in any
factory, building, premises etc
• Require to produce register, mister-roll, take evidence,
make copies, etc
Sec 10 Simple Imprisonment for 1 month and fine extended to
Penalties Rs. 10000
• If after commencement of Act employer
• Omits or fail to maintain register
• Omits or fail to produce register, muster-roll
• Refuses to give the evidence
• Refuses to give information
Imprisonment of 3 months extended to 1 year and fine
of Rs. 10000 extended to Rs. 20000
• If after Commencement of Act
• Makes contravention in recruitment
• Make unequal payment for similar work
• Make discrimination between men and women
• For second offence imprisonment of 2 years
Fine of Rs. 5000
• Omits of refuse to produce to inspector
Sec 11 • Offence committed under this act by the company ,
Offences by every person who at time of offence was in charge, was
companies responsible to company, for conduct of business
• As well as company shall be deemed to be guilty and
liable for proceeding
• Provided render proves that offence was committed
without his knowledge
• Any neglect on the part of any director, manager,
secretary, or other officer of company then such person
shall be deemed to be guilty

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Sec 12 • No court inferior to metropolitan magistrate or a
Cognizance judicial magistrate of the first class shall try
and trail of punishment of offence.
offence
Sec 13 • Central government by notification can make rules
Power to • Rules made by central govt. shall be laid before each
make rules house of parliament for total 30 days which comprise
of 1 or 2 session
• Both houses agreeing on rules, than shall have effect.
Sec 14 Power of central govt. to give direction
Sec 15 • to cases affecting the terms and conditions of a
Act not to woman’s employment in complying with the
apply in requirements of any law giving special treatment to
certain women, or
special • to any special treatment accorded to women in
cases connection wit
• 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
………………………………………………………………………………………………………………………………………………………….
Industrial Employment (Standing Orders) Act, 1946

The act came into being on 23rd April,1946.
In industrial establishments, these denote orders framed and enforced by
management in regard to specified terms and conditions of employment such as
recruitment, classification of workmen, schedule of working hours, attendance
and late-coming, leave and holidays, redressal of grievances, acts or omissions
constituting misconduct and similar other matters.
In India, the first legislative measure providing for framing and certification of
standing orders was the Bombay Industrial Disputes Act, 1938, which aimed at
defining the conditions of employment with sufficient precision, and to make them
known to workmen
• on the basis of the resolutions of the Indian Labour Conference, (Standing

Orders) Act, 1946 came to be passed as a central legislation.
The Act applies to
• every industrial establishment employing 100 or more workmen

• but the central and state governments can apply the provisions of the Act to
any industrial establishment employing fewer than 100 workmen.
• However, a two months’ prior notice by notification in the official gazette is
necessary.

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• The Act does not apply to (i) industries covered by the Bombay Industrial
Relations Act, 1946, and (ii) industrial establishments, to which the
Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961,
applies.
Definitions: -
Certifying Officer: Labour Commissioner or a Regional Labour Commissioner,
and includes any other officer appointed by the central or state government, by
notification in the official gazette, to perform all or any of the functions of a Certifying
Officer under the Act [Sec. 2 (c)].
Employer: The owner of an industrial establishment and includes:
(iv) manager of a factory;
(v) the authority appointed by the Government of India and
(vi) a person responsible to the owner for the supervision and control of the
industrial establishment, in other cases [Sec. 2 (d)].
Industrial Establishment: (i) An industrial establishment as defined in the Payment
of Wages Act, 1936
(ii) a factory
(iii) a railway and
(iv) the establishment of a person who, for the purpose of fulfilling a contract with
the owner of any industrial establishment, employs workmen [Sec. 2 (e)].
Submission of Draft Standing Orders: - Sec-3
• Within 06 months from the date when the act become applicable to an
• The employer of every industrial establishment covered under the Act is
required to submit to the Certifying Officer five copies of the draft standing
orders proposed by him for adoption in his industrial establishment.
• The draft should make provision for every matter set out in the schedule and
where model standing orders have been prescribed, it should be in
conformity with the model.
• The draft standing orders should be accompanied by a statement giving
prescribed particulars relating to workmen employed in the industrial
establishment including the name of the trade union to which they belong.
• A group of employers in similar industrial establishments may submit a
joint draft of standing orders.
Certification of Standing Orders: -
• On receipt of the draft standing orders, the Certifying Officer is required to

forward a copy of the same to the trade union of workmen
• The objections are to be submitted within 15 days of the receipt of the
notice. After giving the employer and the trade union or representatives of
workmen an opportunity of being heard, the Certifying Officer will take

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decision whether or not any modification of or addition to the draft submitted
is necessary and make a written order accordingly.
• After making the required modifications or additions by trade unions,
Certifying Officer will certify the draft standing orders and send copies of the
certified standing within seven days of certification
• Any employer, workman, trade union or other prescribed representatives of
workmen aggrieved by the order of the Certifying Officer may appeal to the
appellate authority within 30 days from the date on which copies are sent to
them
• Certified standing orders come into operation on the expiry of 30 days from
the date on which their authenticated copies are sent to the persons
concerned, if no appeal has been made
• if appealed, after expiry of seven days from the date on which copies of the
order of the appellate authority have been sent to the concerned persons
• Certified standing orders are normally to remain unmodified for a period of
six months from the date of their operation
• The Certifying Officer and the appellate authority have the powers of a civil
court for the purpose of receiving evidence, administering oaths, enforcing the
attendance of witnesses, and compelling the discovery and production of
documents.
Payment of Subsistence Allowance to the Suspended Workers: -Sec-10A

❖ Where any workman is suspended by the employer pending investigation
or injury into complaints or charges of misconduct against him, the
employer is required to pay to such workman subsistence allowance at
the following rates:
1. At the rate of 50 per cent of the wages which the workman was entitled
to immediately preceding the date of such suspension, for the first 90 days
of suspension.
2. At the rate of 75 per cent of the 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 the
workman.
****In case a dispute arises regarding the payable subsistence allowance, The
decision of the Labour Court will be final and binding on the parties.
Temporary application of Model Standing Order: -Sec-12A
Temporary application of modal standing orders shall be deemed to be adopted till
the standing orders as submitted are certified.
Penalties: -
❖ Failure to submit draft standing orders -is punishable with fine up to
5,000, and in the case of a continuing offence with a further fine up to 200
per day

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❖ Contravention of standing orders finally certified is punishable with fine

up to 100, and in the case of a continuing offence with a further fine of 25
per day
****Classification of Workmen
(a) Workmen shall be classified as:
(i) Permanent
(ii) Probationers
(iii) Badlis
(iv) Temporary
(v) Casual
(vi) Apprentices
(b) A ‘permanent workman’ is a workman who has been engaged on a permanent
basis and includes any person who has satisfactorily completed a probationary
period of three months in the same or in another occupation in the industrial
establishment, including breaks due to sickness, accident, leave, lockout, strike (not
being an illegal strike) or involuntary closure of the establishment.
(c) A ‘probationer’ is a workman who is provisionally employed to fill a permanent
vacancy in a post and has not completed three months’ service therein.
(d) A ‘badli’ is a workman who is appointed in the post of a permanent workman
or probationer who is temporarily absent.
(e) A ‘temporary workman’ is a workman who has been engaged for work which is of
an essentially temporary nature likely to be finished within a limited period
(f) A ‘casual workman’ is a workman whose employment is of a casual nature(as per
requirement).
(g) An ‘apprentice’ is a learner who is paid an allowance during the period of his
training.
………………………………………………………………………………………………………………………………………………………..
The Payment of Gratuity Act, 1972

Introduction
1. Prior to the enactment of the Payment of Gratuity Act, 1972, the Working
Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955,
and two state laws namely, Kerala Industrial Employees’ Payment of Gratuity
Act, 1970, and West Bengal Employees’ Payment of Gratuity Act, 1971, were
in operation in the country.

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2. The proposal for enacting a central legislation on gratuity was discussed at
the Labour Ministers’ Conference held on 24 and 25 August 1971 and
subsequently, in the Indian Conference held on 22 and 23 October 1971
3. The Bill was passed as the Payment of Gratuity Act in August 1972 which
came into force on 16 September the same year.
4. The amending Act of 2009 redefined the term ‘employee’ with a view to
removing ambiguity in its interpretation. This was done in view of the Supreme
Court judgement of 2004 which ruled that the existing definition did not cover
educational institutions which had been brought under the coverage of the
Act by the notification of the central government in 1997.
PAYMENT OF GRATUITY ACT, 1972

1. An Act to provide for a scheme for the payment of gratuity to employees
engaged in factories, mines, oilfields, plantations, ports, railway companies,
shops or other establishments and for matters connected therewith or
incidental thereto.
2. This Act may be called the Payment of Gratuity Act, 1972.
3. Came into force on 21st August 1972
Applicability
1. It extends to the whole of India
2. (a) every factory, mine, oilfield, plantation, port and railway company;
3. (b) every shop or establishment within the meaning of any law for the time
being in force in relation to shops and establishments in a State, in which 10
or more persons are employed, or were employed, on any day of the preceding
12 months;
4. (c) such other establishments or class of establishments, in which ten or more
employees are employed, or were employed, on any day of the preceding twelve
months, as the Central Government may, by notification, specify in this
behalf.
5. Provided that in so far as it relates to plantations or ports, it shall not extend
to the State of Jammu and Kashmir
Sections
Appropriate Govt Establishment under control of central govt.
having branches in more than one State,
Factory , Major port, oilfield, railway company
State Govt.
Other establishment

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Sec 2(b) • Completed year of service
• Continuous service for one year
Sec 2 (e) • any person (other than an apprentice) who is

employed for wages, whether the terms of such
employment are express or implied
• in any kind of work, manual or otherwise
• in connection with the work of a factory, mine,
oilfield, plantation, port, railway company, shop or
other establishment to which this Act applies,
• but does not include any such person who holds a
post under the Central Government or a State
Government and is governed by any other Act or by
any rules providing for payment of gratuity
Sec 2 (f) • in relation to any establishment, factory, mine, oilfield,
Employer plantation, port, railway company or shop
• belonging to, or under the control of, the Central
Government or a State Government, a person or
authority appointed by the appropriate Government
for the supervision and control of employees,
• where no person or authority has been so appointed,
the head of the Ministry or the Department
concerned
• belonging to, or under the control of, any local
authority, the person appointed by such authority for
the supervision and control of employees or where no
person has been so appointed, the chief executive
officer of the local authority
• in any other case, the person, who, or the authority
which, has the ultimate control over the affairs of the
establishment, factory, mine, oilfield, plantation, port,
railway company or shop,
• manager, managing director or by any other name,
such person;
Sec 2(h) Family In case of Male Employee
• himself, his wife, his children, whether married or
unmarried, his dependent parents and the
dependent parents of his wife and the widow and
children of his predeceased son,
In case of Female Employee
• herself, her husband, her children, whether married
or unmarried, her dependent parents and the
dependent parents of her husband and the widow
and children of her predeceased son
Sec 2 (q) termination of the service of an employee otherwise than on
Retirement superannuation
Sec 2 (r) in relation to an employee, means the attainment by the
superannuation employee of such age as is fixed in the contract or conditions
of service as the age on the attainment of which the employee
shall vacate the employment

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Sec 2 (s) • all emoluments which are earned by an employee
Wages while on duty or on leave in accordance with the terms
and conditions of his employment and which are paid
or are payable to him in cash and includes dearness
allowance
• does not include any bonus, commission, house
rent allowance, overtime wages and any other
allowance
Sec 2A • The period of service is Uninterrupted
Continuous • including service which may be interrupted on
service account of sickness, accident, leave, absence from
duty without leave
• lay-off, strike or a lock-out or cessation of work not
due to any fault of the employee,
• whether such uninterrupted or interrupted service
was rendered before or after the commencement of
this Act;
where an employee (not being an employee employed in a
seasonal establishment) is not in continuous service
For 1 Year
a) Completed 190 days below the ground
b) Completed 240 days in other cases
For 6 months
a) Completed 95 days below the ground
b) Completed 120 days in other cases
Seasonal establishment
75% of work on days the establishment operated
Sec 3 • The appropriate Government may, by notification,
Authority appoint any officer to be a controlling authority,
• who shall be responsible for the administration of this
Act and different controlling authorities may be
appointed for different areas
Sec 4 employee on the termination of his employment after he has
Payment of rendered continuous service for 5 years
gratuity (a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease
Death of employee
• gratuity payable to him shall be paid to his nominee
or, if no nomination has been made, to his heirs
• where any such nominees or heirs is a minor, shall be
deposited with the controlling authority who shall
invest the same for the benefit of such minor in such
bank or other financial institution,
• Paid on completion of 18 yrs
Piece Rate Employee
• daily wages shall be computed on the average of the
total wages received by him for a period of 3 months
immediately preceding the termination of his
employment,

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• the wages paid for any overtime work shall not be
taken
Seasonal Establishment
• pay the gratuity at the rate of 7 days’ wages for each
season.
Non seasonal Employment

• every completed year of service or part thereof in
excess of six months
• gratuity to an employee at the rate of 15 days’ wages
based on the rate of wages last drawn by the employee
• No overtime
In case of piece rated employee, Gratuity shall be
computed as follows:
a) Last drawn wages x 15/26 x Completed years of service
(including a part of year in excess of 6 months)
b) Last 3 Months’ average wages x 15/26 x Completed years
of service (including a part of year in excess of 6 months)
c) Last 6 Months’ average wages x 15/26 x Completed years
d) Last 3 Months’ average wages x 14/26 x Completed years
Formula for Calculating Gratuity
In monthly rated employee = last drawn salary *
15* completed years/ 26
Maximum capacity of Gratuity
• The amount of gratuity payable to an employee shall
not exceed 20 lakhs (amendment 2018)
After disablement payment of gratuity
• gratuity payable to an employee who is employed, after
his disablement, on reduced wages,
• Wages of period Preceding disablement
• reduced Wages subsequent to his disablement
Not payable in case
• employee have been terminated for his riotous or
disorderly conduct or any other act violence
• offence involving moral turpitude
• willful omission or negligence causing any damage or
loss to, or destruction of, property belonging to the
employer
Sec 4(A) • every employer, other than an employer or an
establishment belonging to, or under the control of, the
Compulsory
Central Government or a State Government
insurance
• obtain an insurance for his liability for payment
towards the gratuity under this Act, from the Life
Insurance Corporation of India
• appropriate Government may, exempt
• every employer who had already established an
approved gratuity fund in respect of his employees

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• every employer employing 500 or more persons who
establishes an approved gratuity fund in the
manner prescribed
• every employer shall within such time as may be
prescribed get his establishment registered with the
controlling authority
• The appropriate Government may provide constitution
of the Board of Trustees of the approved gratuity fund
and for the recovery by the controlling authority of the
amount of the gratuity payable
• Where an employer fails to make any payment by way
of premium to the insurance he shall be liable to pay
the amount of gratuity due under this Act (including
interest, if any, for delayed payments) forthwith to
the controlling authority.
• shall be punishable with fine which may extend to
10000 rupees and in the case of a continuing offence
with a further fine which may extend to 1000 for
each day during which the offence continues
Sec 5 • The appropriate Government may, exempt any
Power to exempt establishment, factory, mine, oilfield, plantation, port,
railway company or shop to which this Act applies
from the operation of the provisions of this Act if,
• Employees are in receipt of gratuity or pensionary
benefits not less favourable than the benefits conferred
under this Act
Sec 6 • employee, who has completed 1 year of service, make
Nomination nomination
• An employee may, in his nomination, distribute the
amount of gratuity payable to him under this Act
amongst more than one nominee
• Family Nomination: in favour of one or more members
of his family, in other case void
• Has no family: favour of any person or persons, when
acquires family then in name of family
• Can be modified by an employee at any time, after
giving to his employer a written notice in such form
• If a nominee predeceases the employee, the interest of
the nominee shall revert to the employee who shall
make a fresh nomination
• Every nomination, fresh nomination or alteration of
nomination, as the case may be, shall be sent by the
employee to his employer, who shall keep the same in
his safe custody.
The Payment of Nominations : A nomination shall be in Form 'F
Gratuity (Central) 1. in the case of an employee who is already in employment
Rules, 1972 for a year or more on the date of commencement of these
rules, ordinarily, within ninety days from such date, and
2. in the case of an employee who completes one year of
service after the date of commencement of these rules,

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ordinarily within thirty days of the completion of one
year of service
An employee who has no family at the time of making a
nomination shall, within ninety days of acquiring a family
in fresh nomination in form G.
Sec 7 • When gratuity become payable
Determination of • A person who is eligible for payment of gratuity send
Amount of gratuity a written application to the employer,
• the employer shall, whether an application has been
made or not, determine the amount of gratuity and
give notice in writing to the person to whom the
gratuity is payable
• and also to the controlling authority specifying the
amount of gratuity so determined.
• employer to pay the amount of gratuity within 30 days
from the date it becomes payable to the person to
whom the gratuity is payable
• If not paid in time then adding simple interest gratuity
to be paid
• no such interest shall be payable if the delay in the
payment is due to the fault of the employee and the
employer has obtained permission in writing from the
controlling authority
In case of dispute
• dispute with regard to any matter or matters
• the employer or employee or any other person raising
the dispute may make an application to the controlling
authority for deciding the dispute
• The controlling authority shall, after due inquiry and
after giving the parties to the dispute a reasonable
opportunity of being heard,
• any amount is found to be payable to the employee,
the controlling authority shall direct the employer to
pay such amount or such amount as reduced by the
amount already deposited by the employer
• The controlling authority shall pay the amount
deposited, including the excess amount, if any,
deposited by the employer, to the person entitled
• Any person aggrieved by an order of controlling
authority may, within 60 days prefer an appeal to the
appropriate Government (OR appellate authority)
• The appropriate Government or the appellate
authority, as the case may be confirmed, modify or
reverse the decision of the controlling authority
Sec 7(A) The appropriate Government may, by notification, appoint as

Inspectors many Inspectors
Sec 7(B) • require an employer to furnish such information
Power of • Enter and inspect, at all reasonable hours, with such
Inspectors assistants

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• examine with respect to any matter relevant
• make copies of, or take extracts from, any register,
record, notice or other document
Sec 8 • If the amount of gratuity payable under this Act is not
Recovery of paid by the employer, within the prescribed time, to
Gratuity the person entitled
• the controlling authority shall, on an application made
to it in this behalf by the aggrieved person, issue a
certificate for that amount to the Collector,
• who shall recover the same, together with compound
interest as arrears of land revenue and pay the
same to the person entitled
• that the controlling authority shall, before issuing
a certificate under this section, give the employer
a reasonable opportunity of showing cause against the
issue of such certificate amount of interest payable
under this section shall, in no case exceed the amount
of gratuity payable under this Act.
Sec 9 avoiding any payment to be made by himself or of enabling
Penalties any other person to avoid such payment
• Imprisonment of 6 months and fine extended to 10000
employer who contravenes, or makes default in complying
with, any of the provisions
• Imprisonment of 3 months to 1 year
• Fine of 10000 to 20000
offence relates to non-payment of any gratuity payable
• Imprisonment of 6 months extended to 2 years
• Nonpayment of Premium: Fine of Rs. 10000
• Continuing offence: 1000 each day
Sec 11 • No court shall take cognizance until on a complaint
Cognizance of made by or under the authority of the appropriate
offences Government
• where the amount of gratuity has not been paid, or
recovered, within six months from the expiry of the
prescribed time, the appropriate Government shall
authorize the controlling authority to make a
complaint against the employer,
• the controlling authority shall, within 15 days from the
date of such authorization, make such complaint to a
magistrate having jurisdiction to try the offence.
• No court inferior to that of a Metropolitan magistrate
or a Judicial Magistrate of the first class shall try any
offence
THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972
Application for gratuity:

1. An employee who is eligible for payment of gratuity under the Act, or any
person authorised, in writing within thirty days from the date

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Provided that where the date of superannuation or retirement of an employee
is known, the employee may apply to the employer before thirty days of the
date of superannuation or retirement. ate the gratuity became payable, in
Form 'I' to the employer
2. A nominee of an employee who is eligible for payment of gratuity, within
thirty days from the date of gratuity became payable to him,
3. A legal heir of an employee who is eligible for payment of gratuity. l applies,
ordinarily within one year from the date of gratuity became payable to him
………………………………………………………………………………………………………………………………………………………….

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The Mines Act ,1952

Introduction
1. The Mines Act 1952, is an act to amend and consolidate the law relating to
the regulation of Labour and safety in mines
2. This act may be called as Mines Act, 1952
3. It extends to whole India
4. It was enacted on 15th March 1952 and It came into force on 1st July 1952.
5. It is Protective Legislation.
Definitions
Sec 2(b) • Person who has completed 18 years

Adult
Sec 2(c) • In relation to mine, means every person, whether

Agent appointed as such or not, who acting or purporting
to act on behalf of the owner
• Takes part in management, control, supervision or
direction of mine or any part
Sec 2(f) • Period of 24 hrs beginning at midnight

Day
Sec 2(h) • A person is said to be employed in mine who work

Employed as manager or works under the appointment by
owner, agent or manager of mine
• With or without knowledge of manager
• Whether for wages or not
i) In any mining operation
ii)In operation or services relating to the development of
mine including construction of plant(exclude construction
of roads, well any construction not connected to mines)
iii)In operating, servicing, maintaining or repairing any
part or machinery used in mine
iv)Loading for dispatch of minerals
v) In any office of mine
vi) In any welfare, health, sanitary or conservancy services
within mines premises
vii)Any operation incidental, related or connected to mine
Sec 2(j) • Any excavation where operation for the purpose

Mine of searching for or obtaining minerals has been
or is being carried out and includes
• All boring, bore holes, oil wells, crude conditioning
plants, pipe conveying mineral oil within the
oilfields

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• All shafts, all opencast workings
• All levels and inclined planes in course of being
driven
• All conveyors or Ariel ropeways provided for
bringing or removal from mine of mineral
• All adits, livels, planes, machinery work, railways
tramways and sidings
• All protective work carried out in or adjacent to mine
• All workshop and store situated within the precincts
of the mine
• All power stations, transformer sub stations,
rectifier station, accumulator storage stations for
supplying electricity solely for working of mines or
mines in same management.
• Any premises in or adjacent to and belonging to
mine any process ancillary to the getting, dressing
or operation for sale of minerals.
• Any premises for time being used from depositing
sand or other material for use of mine.
Sec 2(jj) • All substances which can be obtained from earth by
Minerals mining, digging, drilling, dredging, hydraulicing,
quarrying or any operation and includes
minerals(natural gas and petroleum)
Sec 2(k) • Any office at the surface of mine
Office of the mine
Sec 2(kk) • A quarry that is excavation where any operation
Open cast working for the purpose of searching for or obtaining
minerals has been or is being carried on, not
being a shaft or an excavation which extends below
superjacent ground

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Sec 2(l) Owner
In relation to mine In relation of mine Does Not include

any person who is the business being person who merely
immediate proprietor carried on by a receives a royalty, rent
or lessee or occupier of liquidator or receiver or fine from the mine
the mine is merely the
such liquidator or proprietor of the mine,
receiver subject to any lease,
grant or licence for the
working thereof, or
is merely the owner of
the soil and not
interested in the
minerals of the mine
Sec 2(n) • medical practitioner who possesses any

Qualified medical recognized medical qualification as defined in
practitioner clause (h) of section 2 of the Indian Medical
Council Act, 1956 (102 of 1956)
• who is enrolled on a State medical register.

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Sec 2(o)
Rules
Regulations Bye-laws
Rules are instructions
Regulations refer to followed in order for Bye-laws are passed
the directives or something correctly by committees or
statute enforced by usually in a particular board of directors or
law, binding under law organization community.
Sec 2(p) • where work of the same kind is carried out by

Relay two or more sets of persons working during
different periods of the day each of such sets
• and each of such periods is called a “shift”
Sec 2(pp) • any injury other than a serious bodily injury which
Reportable injury involves, or in all probability will involve, the
enforced absence of the injured person from work
for a period of 72 hours or more
Sec 2(q) • Any injury which involves, or in all probability will
Serious bodily injury involve, the permanent loss of any part or
section of a body or the use of any part or
section of a body.
• The permanent loss of or injury to the sight or
hearing or any permanent physical incapacity or
the fracture of any bone or one or more joints or
bones of any phalanges of hand or foot
Sec 2(r) • means a period of seven days beginning at
Week midnight on Saturday night or such other night
as may be approved in writing for a particular area
by the Chief Inspector

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Sec2(2)
A person working or employed in or

in connection with a mine is said to
be working or employed
Below ground
Above Ground
a)in a shaft which has been or is in
the course of being sunk if he is working in an open cast
working or in any other manner not
b)in any excavation which extends specified
below superjacent ground
Sec 3 • The provisions of this Act, except those

Act not to apply in certain cases contained in [sections 7,8,9,40,45 and
46] shall not apply to
Section-3
a) any mine or part in which excavation b)any mine engaged in the extraction of
is being made for prospecting purposes kankar, murrum, laterite, boulder,
only and not for the purpose of gravel, shingle, ordinary sand, ordinary
obtaining minerals for use or sale clay, building stone, road metal, earth,
fullers earth, and lime stone
Provided- Provided-
• not more than 20 persons are • the workings do not extend
employed on any one day in below superjacent ground
connection with any such • where it is an open cast working
excavation • Depth of Excavation-not exceed
• the depth of the excavation 6m
measured from its highest to its • Number of employees does not
lowest point nowhere exceeds 6 exceed 50
m or, in the case of an • Explosive are not used in
excavation for coal, 15 m; connection to excavation
• no part of such excavation
extends below superjacent
ground.

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Sec 4 references to time of day are references to Indian

•
References to time of standard time, being 5 and Half Hours ahead of
day Greenwich mean time
• for any area in which Indian standard time is not
ordinarily observed, the Central Government may
make rules—
(a) specifying the area;
(b) defining the local mean time ordinarily observed
therein; and
(c) permitting such time to be observed in all or any of
the mines situated in the area.
Chapter II
INSPECTORS AND CERTIFYING SURGEONS
Chief Inspector and the Official Gazette, appoint such a person as
Inspectors possesses the prescribed qualifications to be
Chief Inspector of Mines for all the territories.
• And such persons as possess the prescribed
qualifications to be Inspectors of Mines
subordinate to the Chief Inspector.
• No person will be appointed who is or becomes
directly or indirectly interested in any mine
or mining rights in India.
• The district magistrate may exercise the
powers and perform the duties of an Inspector
subject to the general or special orders of the
Central Government
• The Chief Inspector and all Inspectors shall be
deemed to be public servants within the meaning
of the Indian Penal Code
Sec 6 • with the approval of the Central Government and
Functions of subject to such restrictions or conditions
Inspectors • by order in writing, authorise any Inspector
named or any class of Inspectors specified in the
order to exercise such of the powers of the Chief
Inspector under this Act
• Chief Inspector may, by order in writing, prohibit
or restrict the exercise by any Inspector named or
any class of Inspectors specified in the order of
any power conferred
• the Chief Inspector shall declare the local area or
areas within which or the group or class of mines
with respect to which Inspectors shall exercise
their respective powers
Sec 7 • The Chief Inspector and any Inspector
Powers of Inspectors of • make such examination and inquiry
Mines • inspect and examine any mine , any time in day
or night
• make inquiry respecting, the state and condition
of any mine or any part thereof, the ventilation of

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the mine, the sufficiency of the bye-laws for the
time being in force relating to the mine,
• health, safety and welfare of the persons
employed in the mine.
Sec 8 • Any person in the service of the Government duly
Powers of special authorized
officer to enter, • by a special order in writing of the Chief
measure, etc Inspector or of an Inspector may, for the purpose
of surveying, leveling or measuring any mine
• after giving not less than 3 days’ notice to the
manager of such mine, enter the mine and may
survey, level or measure the mine or any part
• at any time by day or night
• In emergency : such person can enter and
examine without notice
Sec 9 • Every owner, agent and manager of a mine
Facilities to be afforded • all reasonable facilities for making any entry,
to Inspector Facilities to inspection, survey, measurement, examination
be afforded to Inspector or inquiry
Sec 9 (A) • The Chief Inspector or an Inspector or other
Facilities to be provided officer authorised by him in writing
for occupational health • at any time during the normal working hours of
survey the mine or at any time by day or night as may
be necessary, undertake safety and
occupational health survey in a mine
• after giving notice in writing to the manager
of the mine; and the owner, agent or manager of
the mine
• afford all necessary facilities including facilities
for the examination and testing of plant and
machinery, for the collection of samples and
other data pertaining to the survey and for the
transport and examination of any person
employed.
Employed person • shall present himself for such examination,
during survey furnish all information regarding his work and
health in connection with the said survey
• The time spent shall be counted towards his
working time, overtime shall be paid at the
ordinary rate of wages. (Basic wages +
Dearness Allowance + underground allowance
+ compensation in cash)
• If found medically unfit to discharge the duty
shall be entitled to undergo medical treatment at
the cost of the owner, agent and manager with
full wages during the period of such
treatment.
• If such unfitness is directly ascribable to his
employment in the mine before such
presentation, the owner, agent and manager
shall provide such person with an alternative

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employment in the mine for which he is
medically fit
• alternative employment is not immediately
available, such person shall be paid by the
owner, agent and manager disability
allowance
• decides to leave his employment in the mine, he
shall be paid by the owner, agent and manager a
lump sum amount by way of disability
compensation
• The rates regard to the monthly wages of the
employees, the nature of disabilities and other
related factors.
Overtime at ordinary
Facilities to person employed during
wages
health or occupational survey
Full cost of treatment
Alternative
Employment
Disablement
Allowance
Disablement
Compensation
Sec 10 • All copies of, and extracts from, registers
Secrecy of information or other records appertaining to any mine
obtained and all other information acquired by the
Chief Inspector or an Inspector or by any
one assisting him, in the course of the
inspection or survey
• shall be regarded as confidential and
shall not be disclosed to any person or
authority unless the Chief Inspector or the
Inspector considers disclosure necessary
to ensure the health, safety or welfare of
any person employed in the mine

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• contrary to the provisions any such
information as aforesaid without the
consent of the Central Government, he
shall be punishable with imprisonment
for a term which may extend to one
year, or with fine, or with both.
Disclosure dose not apply to
a an official a the any

Any Court Committee superior or Commissione Controller, registered
or court of the owner, r for Indian or
inquiry agent or workmen’s Bureau of recognised
constituted manager of compensatio Mines trade union
or the mine n appointed
appointed concerned under the
Workmen's
Compensatio
n Act, 1923
Sec 11 • The Central Government may appoint

Certifying surgeons qualified medical practitioners to be
certifying surgeons
• a certifying surgeon may, with the approval
of the Central Government, authorise any
qualified medical practitioner to exercise all
or any of his powers
No person shall be appointed,
• who is or becomes the owner, agent
or manager of a mine,
• or becomes directly or indirectly
interested or in any process or
business carried on or in any patent
or machinery connected therewith,

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• or is otherwise in the employment of
the mine
Duties of Certifying Surgeon
• the examination of persons engaged in a
mine in such dangerous occupations or
processes as may be prescribed
• the exercise of such medical supervision as
may be prescribed for any mine
• For cases of illness have occurred which it
is reasonable to believe are due to the
nature of any process carried on or other
conditions of work prevailing in the mine
Chapter III
COMMITTEES
Sec 12
Committee
The Central Government shall,

constitute a committee
The chief 2 persons

Chairman Inspector to
a person in the of Mine 2 persons to represent 2 qualified
service of the represent the mining
Government, not the interests interests of engineers
being the Chief of miners owners of not directly
Inspector or an (Atleast 1 for mines(Atle employed in
Inspector. worker of ast for 1 the mining
coal mines) for owner industry
of coal
mines)

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Sec 13 a) consider proposals, for making rules and
Functions of the committee regulations under this Act and make appropriate
recommendations to the Central Government
b) enquire into such accidents or other matters
as may be referred to it by the Central
Government from time to time and make reports
c) hear and decide such appeals or objections
against notices or orders under this Act or the
regulations, rules or bye-laws
The Chief Inspector shall not take part in the
proceedings of the Committee with respect to
any appeal or objection against an order or
notice made or issued by him or act in relation to
any matter pertaining to such appeal or objection
as a member of the Committee
Sec 14 A Committee have the same powers as are vested
Powers, etc., of the in a court under the Code of Civil Procedure
committee a) discovery and inspection
(b) enforcing the attendance of any person and
examining him on oath
(c) compelling the production of documents and
(d) such other matters
Sec 15 • The Central Government may direct that the
Recovery of expenses expenses of any inquiry conducted by shall
be borne in whole or in part by the owner or
agent of the mine
• the amount so directed to be paid may, on
application by the Chief Inspector or an
Inspector to a magistrate having
jurisdiction at the place where the mine is
situated or where such owner or agent is for
the time being resident
• be recovered by the distress and sale of any
movable property within the limits of the
magistrate's jurisdiction belonging to such
owner or agent
• Provided that the owner or his agent has not
paid the amount within six weeks from the
date of receiving the notice from the Central
Government or the Chief Inspector of Mines.
Chapter IV
MINING OPERATIONS AND MANAGEMENT OF MINES
• Sec 16 • The owner, agent or manager of a mine
• Notice to be given of shall, before the commencement of any
mining operations mining operation,
• give to the Chief Inspector, the Controller,
Indian Bureau of Mines and the district
magistrate of the district in which the mine
is located

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• notice in writing in such form and
containing such particulars relating to the
mine
• at least one month before the
commencement of any mining operation
Sec 17 • every mine shall be under a sole manager
Managers who shall have the prescribed qualification
and the owner or agent of every mine
shall appoint a person having such
qualification to be the manager(can appoint
themselves)
• the manager shall be responsible for the
overall management, control,
supervision and direction of the mine
and all such instructions when given by the
owner or agent shall be confirmed in writing
forthwith.
Sec 18 • responsible for making financial and other
Duties and responsibilities of provisions and for taking such other steps
owners, agents and as may be necessary for compliance with
managers the provisions of this Act and the
regulations, rules, bye-laws and orders
made thereunder
• results in the contravention of the
provisions of this Act or of the regulations,
rules, bye-laws or orders made thereunder,
every person giving such instructions shall
also be liable for the contravention of the
provisions concerned
• responsible to see that all operations
carried on in connection with the mine
Chapter V
PROVISIONS AS TO HEALTH AND SAFETY
Sec 19 • Drinking water
Sec 20 • separately for males and females in every

Conservancy mine, a sufficient number of latrines and
urinals of prescribed types so situated as to
be convenient and accessible to persons
employed in the mine at all times.
Sec 21 • first-aid boxes or cupboards equipped with
Medical appliances prescribed contents
• kept in the charge of a responsible person
who is trained in such first-aid treatment
• During all working hours
• the conveyance to hospitals or dispensaries
of persons who, while employed in the mine,
suffer bodily injury or become ill
• every mine wherein more than 150 persons
are employed, there shall be provided and
maintained a first-aid room of such size

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with such equipment and in the charge of
such medical and nursing staff as may be
prescribed.
THE MINES RULES, 1955

29Q Workmen’s Inspector: - (1) (a) For every mine wherein 500 or more persons
are ordinarily employed, the owner, agent or manager shall designate three suitably
qualified employees of the mine in consultation with the registered trade union in
the mine and where there are more than one registered trade unions, the union
recognised as per procedure in practice or the most representative union as per the
membership records available at that point of time ,. When the number of persons
employed in a mine exceeds 1500, the Workmen’s Inspector shall be assisted by
one additional Workmen’s Inspector in mining discipline for every additional
1000 persons or part thereof.
29T Safety Committee : For every mine wherein more than 100 persons are
ordinarily employed, the owner, agent or manager shall constitute a Safety
Committee for promoting Safety in the mine; Provided that the Chief Inspector or
an Inspector may by a general or special order in writing require the owner, agent or
manager of any group of specified mines or of all mines in a specified area to
constitute a group Safety Committee in such manner and subject to such conditions
as he may specify in the order
30. Where 100 persons or more are employed, either above ground or in opencast
workings, at any one time, an Inspector may by order in writing require the drinking
water to be effectively cooled by mechanical or other means available
43. [First-aid rooms (1) At every mine employing more than 150 persons on any one
day of the preceding calendar year, there shall be provided and maintained in good
order a suitable first-aid room.
[62. Provision of shelters - At every mine where more than 50 persons are ordinarily
employed, there shall be provided adequate and suitable shelters at or near loading
wharves, opencast workings, workshops and mine entrances where 25 or more
persons are ordinarily employed for taking food and rest ; Provided that any canteen
maintained in accordance with these rules may be regarded as part of the
requirements of this rule.]
64. Provision of Canteens - (1) At every mine where in more than 250 persons are
ordinarily employed, if the Chief Inspector or an Inspector so requires, there shall be
provided and maintained in or adjacent to the precincts of the mine, a canteen for
the use of all persons employed ;
72. Welfare Officer – (1) For every mine wherein 500 or more persons are [ordinarily
employed] the owner, agent or manager shall appoint a suitably qualified person as
Welfare Officer, and where the number of persons so employed in a mine exceeds
2500 ,such Welfare Officer shall be assisted by one suitably qualified additional
Welfare Officer for every additional 2000 persons or part thereof employed.

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Sec 22 • If the Chief Inspector or an Inspector feel
Powers of Inspectors when that any mine or part or any matter, thing
causes of danger not expressly or practice in or connected with the mine,
provided against exist or when or with the control, supervision,
employment of persons is management or direction, is dangerous to
dangerous human life or safety or defective so as to
threaten, or tend to, the bodily injury of
any person, he may give notice in
writing .
• to the owner, agent or manager of the mine
and shall state in the notice the
particulars and require the same to be
remedied within time and in prescribed
manner
• Where the owner, agent or manager of
mine fails to comply , the Chief Inspector
or the Inspector, by order in writing,
prohibit the employment in or about
the mine or any part
• the Chief Inspector or the Inspector, by
order in writing prohibit the extraction or
reduction of pillars or blocks of minerals in
any mine if, in his opinion, such operation
is likely to cause the crushing of pillars or
blocks of minerals or the premature
collapse of any part of the workings or
otherwise endanger the mine or the life or
safety of persons employed
• by general or special order in writing by
the Chief Inspector, is of opinion that there
is urgent and immediate danger to the life
or safety of any person employed in any
mine he may, by order in writing
containing a statement of the grounds of
his opinion, prohibit.
• Every person whose employment is
prohibited under be entitled to payment
of full wages for the period, the owner,
agent or manager shall be liable for
payment of such full wages of that person
Process of Notice by Inspector

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Notices within 10 days, regarding danger or prohibition
Report same to central govt.
Owner, agent who has objection, can appeal to Central Govt. in

writing within 20 days
Objection shall be referred to committee, within 2 months
Decision is then made by committee
Sec 22A • The Chief Inspector can give notice in writing

Power to prohibit to comply , if any the owner, agent or manager
employment in certain of a mine fails to comply with such provisions.
cases The time in notice can be extended.
• the Chief Inspector may, by order in writing,
prohibit the employment reasonably
necessary for securing compliance with the
terms of the notice, if owner, agent or
manager fails to comply with the terms of a
notice even after extension
• Every person whose employment is prohibited
shall be entitled to payment of full wages for
the period
• owner, agent or manager may, instead of paying
such full wages, provide such person with an
alternative employment at the same wages
which such person was receiving in the
employment
Sec 23 • the owner, agent or manager of the mine shall

Notice to be given of give notice of the occurrence to such authority
accidents • post one copy of the notice on a special notice
board in the prescribed manner at a place where
it may be inspected by trade union officials,
• the notice is kept on the board for not less
than 14 days from the date of such posting in
case below
• Make entry in register
(a) an accident causing loss of life or serious bodily
injury,
(b) an explosion, ignition, spontaneous heating,
outbreak of fire or irruption or inrush of water or other
liquid matter

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(c) an influx of inflammable or noxious gases
(d) a breakage of ropes, chains or other gear by which
persons or materials are lowered or raised in a shaft or
an incline,
(e) an overwinding of cages or other means of
conveyance in any shaft while persons or materials are
being lowered or raise
(f) a premature collapse of any part of the working
(g) any other accident which may be prescribed
• Authority or inspector shall make an inquire
into the occurrence within 2 months of the
receipt of the notice, in cause of death

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Notice for accident to Notice kept for 14

authority days on notice board
Authority /Inspector
inquire within 2 Make entry in
months in case of register
death
Central govt. can

Copy of entries send
direct to make entry
to Chief inspector,on
in register, if
or before the 20th
accident, bodily
day of January in the
injury cause absence
year following
from duty
exceeding 24 hrs.
place of accident
shall not be
Chief Inspector or the said Inspector disturbed or altered
fails to inspect the place of accident before the arrival or
within 72 hours of the time of the without the consent
accident, work may be resumed at of the Chief
the place of the accident. Inspector or the
Inspector

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Sec 24 • The Central Government may, for a formal inquiry
Power of Government into the causes of and circumstances attending
to appoint Court of the accident
inquiry in cases of • appoint a competent person to hold such inquiry
accidents and may also appoint one or more persons
possessing legal or special knowledge to act as
assessor or assessors in holding the inquiry.
• Competent person shall have all the powers of a
civil court under the Code of Civil Procedure, 1908,
for the purpose of enforcing the attendance of
witnesses and compelling the production of
documents and material objects
• Person may exercise such of the powers of an
Inspector
• Person shall make a report to the Central
Government stating the causes of the accident
and its circumstances, and adding any
observations which he or any of the assessors may
think fit to make.
Sec 25 • any person employed in mine contracts any
Notice of certain disease connected with mining operations, the
diseases owner, agent or manager of the mine, shall
send notice thereof to the Chief Inspector and
to such other authorities.
• Medical practitioner attends on a person to be
suffering from any disease.
• the medical practitioner shall without delay send
a report in writing to the Chief Inspector
stating—
(a) the name and address of the patient,
(b) the disease from which the patient is or is believed to
be suffering, and
(c) the name and address of the mine in which the patient
is or was last employed
• Where the report is confirmed to the satisfaction
of the Chief Inspector by the certificate of a
certifying surgeon
• Chief Inspector shall pay to the medical
practitioner fee as may be prescribed, and the
fee so paid shall be recoverable as an arrear of land
revenue from the owner, agent or manager of the
mine
• any medical practitioner fails to comply with the
provisions he shall be punishable with fine which
may extend to 50 rupees
Sec 26 • The Central Government may, appoint a
Power to direct competent person to inquire into and report to
investigation of causes it on any case where a disease notified.
of disease • may also appoint one or more persons
possessing legal or special knowledge to act as
assessors in such inquiry.

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Sec 27 • The Central Government may cause any report
Publication of reports submitted by a Committee
• or any report of extracts from any report submitted
to it under section 26,
• and shall cause every report submitted by a Court
of inquiry under section 24 to be published at such
time and in such manner as it may think fit.
Chapter VI
HOURS AND LIMITATION OF EMPLOYMENT
Sec 28 • No person shall be allowed to work in a mine on
Weekly day of rest more than 6 days in any one week
Sec 29 • any person employed therein is deprived of any of

Compensatory days of the weekly days of rest for which provision is made
rest in section 28,
• he shall be allowed, within the month in which
such days of rest were due to him or within the
two months immediately following that month,
compensatory days of rest equal in number to
the days of rest of which he has been deprived.
Sec 30 • No adult allowed to work for more than 48
Hours of work above hours in any week or for more than 9 hours in
ground any day (chief inspector may fix max hours)
• Day work & interval for rest, shall not in any
day spread over more than 12 hours. ( Chief
Inspector in writing , permit the spread-over to
extend over a period not exceeding 14 hours in any
day.)
• Persons belonging to two or more shifts shall not
be allowed to do work of the same kind above
ground at the same time.
Sec 31 • No adult employed below ground in a mine shall
Hours of work below be allowed to work for more than 48 hours in any
ground week or for more than 8 hours in any day
• No work shall be carried on below ground in any
mine except by a system of shifts so arranged that
the period of work for each shift is not spread-over
more than the daily maximum hours
• No person employed in a mine shall be allowed to
be present in any part of a mine below ground
except during the periods of work shown in respect
of him in the register maintained.
Sec 32 • Where a person employed in a mine works on a
Night Shift shift which extends beyond midnight
a) a weekly day of rest of period of 24 consecutive hours
beginning when his shift ends
b) the following day for him shall be deemed to be the
period of twenty-four hours beginning when such shift
ends, and the hours he has worked after midnight shall
be counted in the previous day

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Sec 34 • Where in a mine a person works above ground for
Extra wages for more than 9 hours in any day, or works below
overtime ground for more than 8 hours in any day or works
for more than 48 hours in any week whether above
ground or below ground
• overtime work be entitled to wages at the rate of
twice his ordinary rate of wages, the period of
overtime work being calculated on a daily basis or
weekly basis, whichever is more favourable to him
• Where any person employed in a mine is paid on
piece-rate basis, the time-rate shall be taken as
equivalent to the daily average of his full-time
earnings for the days on which he actually worked
during the week immediately preceding the week
in which overtime work has been done.
• overtime, time-rate shall be deemed to be the
ordinary rate of wages of such person
• such person has not worked in the preceding week
on the same or identical job, the time-rate shall be
based on the average for the days he has worked
in the same week excluding the overtime or on the
daily average of his earnings in any preceding
week, whichever is higher
• The Central Government may prescribe the
registers to be maintained in a mine for the
purpose of securing compliance.
• Overtime above • Overtime below the • Piece Rate

the ground ground
Mine worker if work more Mine worker if work more time-rate = daily average
9 hours a day and more 8 hours a day and more of his full-time earnings
than 48 hrs. a week than 48 hrs. a week for the days on which he
• overtime work • overtime work actually worked during
wages = 2 * wages = 2 * the week immediately
ordinary rate of ordinary rate of preceding the week in
wages wages which overtime work has
• the period of • the period of been done, exclusive of
overtime work overtime work any overtime
being calculated being calculated such time-rate = ordinary
on a daily basis or on a daily basis or rate of wages of such
weekly basis weekly basis person
if such person has not
worked in the preceding
week on the same or
identical job, the time-
rate shall be based on the
average for the days he
has worked in the same
week excluding the
overtime or on the daily

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average of his earnings in
any preceding week,
whichever is higher
Sec 34 No person shall be required or allowed to work in a

Prohibition of employment mine if he has already been working in any other
of certain persons mine within the preceding 12 hours
Sec 35 no person employed in a mine shall be required or

Limitation of daily hours allowed to work in the mine for more than 10 hours
of work including overtime in any day inclusive of overtime
work
Sec 36 • The manager of every mine shall cause to be
Notices regarding hours of posted outside the office of the mine a
work notice in the prescribed form stating the
time of the commencement and of the end
of work at the mine
• the time of the commencement and of the end
of work for each relay.
• In the case of a mine at which mining
operations commence after the
commencement of this Act, the notice shall be
posted not less than 7 days before the
• Notice also state the time of the
commencement and of the intervals for rest for
persons employed above ground and a copy
thereof shall be sent to the Chief Inspector
Sec 40 • no person below eighteen years of age shall be
Employment of persons allowed to work in any mine or part thereof
below eighteen years of • apprentices and other trainees, not below 16
age years of age, may be allowed to work, under
proper supervision, in a mine or part thereof
by the manager
• trainees, other than apprentices, prior
approval of the Chief Inspector or an Inspector
shall be obtained before they are allowed to
work
Sec 43 • Inspector can give notice to manager,
Power to require medical examination by certifying surgeon of
examination • Any person employed in mine
• Apprentice and trainee
• If they are not medically fit, prohibit their
employment.
Sec 46 • No woman shall be employed—
(a) in any part of a mine which is below ground;
(b) in any mine above ground except between the
hours of 6 A.M. and 7 P.M.
• Every woman employed in a mine above
ground shall be allowed an interval of not less

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than 11 hours between the termination of
employment on any one day and the
commencement of the next period of
employment
• Central Government may, by notification
• in the Official Gazette, vary the hours of
employment above ground of women in respect
of any mine or class or description of mine, so
however that no employment of any woman
between the hours of 10 P.M. and 5 A.M. is
permitted.
Sec 48 • For every mine,place a register of all persons
Registers of persons employed in the mine showing in respect of
employed each such person
• the name of the employee with the name of his
father or, of her husband, as the case may be,
and such other particulars as may be
necessary for purposes of identification;
(b) the age and sex of the employee;
(c) the nature of employment (whether above ground
or below ground, and if above ground, whether in
open cast workings or otherwise) and the date of
commencement thereof
• No person shall be employed without recorded
in the register and employed except during the
periods of work shown in respect of him in the
register.
Sec 48(4) • there shall be kept in the prescribed form and
For every mine other than place separate registers showing in respect of
a mine which, for any each person employed in the mine—
special reason to be (a) below ground;
recorded, is exempted by (b) above ground in open cast workings; and (c) above
the Central Government ground in other cases—
by general or special order (i) the name of the employee;
(ii) the class or kind of his employment;
(iii) where work is carried on by a system of relays,
the shift to which he belongs and the hours of the
shift.
• The register of persons employed below
ground shall show at any moment the name
of every person who is then present below
ground in the mine.
Chapter VII
LEAVE WITH WAGES
Sec 50 • leave shall not include weekly days of rest
Leave defined or holidays for festivals or other similar
occasions whether occurring during or at
either end of the period of leave.
Sec 51 • a calendar year shall mean the period of twelve
Calendar year defined months beginning with the first day of January
in any year.

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Sec 52: Annual leave with wages
• Person employed below the • Person employed

ground Above the ground
• During the calendar year • During the calendar year

completed not less than 190 completed not less than 240
DAYS attendances at the mine DAYS attendances
• at the rate of one day for every • at the rate of one day for every
15 days of work 20 days of work performed
• Any leave not taken be allowed • Any leave not taken be allowed
to him during the succeeding to him during the succeeding
calendar year calendar year
• total number of days of leave • total number of days of leave
which may be accumulated by which may be accumulated by
any such person shall not at any any such person shall not at any
one time exceed 30 days in all one time exceed 30 days in all
• Whose work commence other • Whose work commence other
than 1st Jan :should put in than 1st Jan : should put in
attendances for not less than attendances for not less than
one-half of the total number of two- third of the total number
days during the remainder of of days during the remainder of
the calendar year the calendar year
Sec 52: Annual leave with wages

Deemed to be the days on which the employee has worked in a mine for the
purpose of computation of the attendances
1.Layoff
2.Maternity Leave
3. Paid Leave
Worker/person has to apply in writing to the manager of the mine not less
than 15 days before the day on which he wishes his leave to begin, for all
leave or any portion.
The number of times in which leave may be taken during any one
calendar year shall not exceed three.
If a person employed in a mine wants to avail himself of the leave with wages
due to him to cover a period of illness, he shall be granted such leave even if
the application for leave is not made within the time
Termination Discharged /dismissed

Superannuated or death
• terminated by the owner, agent or he or his heirs or his nominee, as the
manager of the mine before he case may be, shall be entitled to wages

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has taken the entire leave to in lieu of leave due to him calculated at
which he is entitled the rate specified
• if such person having applied for Below the ground: complete one and
and having not been granted half of the total number of days from
such leave, quits his employment the date of his employment to the date
before he has taken the leave of his discharge or dismissal or quitting
• owner, agent or manager of the of employment or superannuation or
mine shall pay him the amount death
payable Above the ground: complete 2/3 of
• before the expiry of the 2nd total number of days
working day after such Paid won the expiry of 2nd day after
termination such discharge, dismissal, quitting of
• himself quits his employment, on employment or superannuation
or before the next pay day ages
In case of death: within 2 month.
Sec 53 • For the leave allowed to a person employed in a

Wages during leave mine
period • he shall be paid at a rate equal to the daily
average of his total full-time earnings for the
days on which he was employed during the month
immediately preceding his leave
• inclusive of any dearness allowance and
compensation in cash including such
compensation, free issue of foodgrains and
other articles as persons employed in the mine
• exclusive of any over-time wages and bonus
• Provided no such average earnings are available,
then the average shall be computed on the basis
of the daily average of the total full-time earnings
of all persons similarly employed for the same
month.
Sec 54 • Any person employed in a mine who has been
Payment in advance in allowed leave for not less than 4 days, shall,
certain cases before his leave begins, be paid the wages due for
the period of the leave allowed.
Sec 55 • Any sum required to be paid by the owner, agent

Mode of recovery of or manager of a mine under this Chapter but not
unpaid wage paid by him shall be recoverable as delayed
wages under the provisions of the Payment of
Wages Act, 1936 (4 of 1936).
Sec 56 • Where the Central Government is satisfied that
Power to exempt mines the leave rules applicable to persons employed in
any mine provide benefits which in its opinion
are not less favourable as provided in chapter
• by order in writing and subject to such
conditions as may be specified therein, exempt
the mine from all or any of the provisions

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Chapter VIII
REGULATIONS, RULES AND BYE-LAWS
Power of Central the Official Gazette, make regulations consistent
Government to make with this Act for all or any of the following
regulations purposes, namely: —
(a) qualifications required for appointment as Chief
Inspector or Inspector;
(b) the duties and powers of the Chief Inspector and of
Inspectors
(c) for prescribing the duties of owners, agents and
managers of mines and qualifications
(d) for requiring facilities to be provided for enabling
managers of mines and other persons acting under them
to efficiently discharge their duties;
(e) for regulating the manner of ascertaining, by
examination or otherwise, the qualifications of managers
of mines and persons acting under them, and the
granting and renewal of certificates of competency;
(f) for fixing the fees,
(g) for determining the circumstances in which and the
conditions subject to which it shall be lawful for more
mines
2[(h) for providing for inquiries to be made under this
Act
(i) for regulating, subject to the provisions of the Indian
Explosives Act, 1884 (4 of 1884), and of any rules made
thereunder, the storage, conveyance and use of
explosives;
Power of Central the Official Gazette, make rules consistent with
Government to make this Act
rules
Sec 59 • The date to be specified in accordance as that
Prior publication of after which a draft of regulations or rules
regulation and rules proposed to be made will be taken under
consideration,
• shall not be less than three months from the date
on which the draft of the proposed regulations or
rules is published for general information.
Sec 60 • if the Central Government is satisfied that for the
Power to make prevention of apprehended danger or the speedy
regulations without remedy of conditions likely to cause danger it is
previous publication necessary in making such regulations to dispense
with the delay that would result from such
publication and reference.
Sec 61 • The owner, agent or manager of a mine may, and
Bye-laws shall, if called upon to do so by the Chief
Inspector or Inspector, frame and submit to
the Chief Inspector or Inspector a draft of such
bylaws

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• as such owner, agent or manager may deem
necessary to prevent accidents and provide for the
safety, convenience and discipline of the persons
employed in the mine
a) fails to submit within two months a draft of bye-laws
after being called upon to do so by the Chief Inspector or
Inspector,
b) submits a draft of bye-laws which is not in the
opinion of the Chief Inspector or Inspector sufficient
• the Chief Inspector or Inspector may— (i) propose
a draft of such bye-laws as appear to him to be
sufficient, or (ii) propose such amendments in any
draft submitted to him by the owner, agent or
manager.
Sec 61 A • Every regulation made and every bye-law made
Laying regulations, shall be laid, as soon as may be after it is made,
rules and bye-laws before each House of Parliament, while it is in
before parliament session, for a total period of thirty days which may
be comprised in one session or in two or more
successive
• kept posted up at or near every Mine in English
and in such other language or languages as may
be prescribed, the prescribed abstracts of the Act
and of the regulations and rules.
CHAPTER IX
PENALTIES AND PROCEDURE
Sec 63 • Obstruction: imprisonment for a term which may
Obstruction extend to 3 months, or with fine which may
extend to 500 or with both.
• refuses to produce : be punishable with fine
which may extend to 300 rupees.
Sec 64 • shall be punishable with imprisonment for a term
Falsification of records, which may extend to 3 months, or with fine
etc which may extend to 1000 or with both.
Sec 65 • with imprisonment for a term which may extend
Use of false certificates to 1 month, or with fine which may extend to
of fitness 200 rupees, or with both.
Sec 66 • punishable with fine which may extend to 1000
Omission to furnish rupees.
plans, etc.(return,
notice, register,)
Sec 67 • with imprisonment for a term which may extend
Contravention of to 3 months, or with fine which may extend to
provisions regarding 1000 rupees, or with both
employment of labour
Sec 68 • the owner, agent or manager of such mine shall
Penalty for employment be punishable with fine which may extend to 500
of persons below
eighteen years of age

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The Inter State Migrant Workmen Act,1979

Introduction
Sec 1: Short Title
1) Called as the Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979.
2)Enacted by Act of Parliament

3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint
Applicability:
1)Extends to whole India
2) Establishment employing 5 or more Inter migrant workmen on any day of
preceding 12 months.
3)Every contractor employing 5 or more Inter migrant worker on ay day of
preceding 12 months
Definition
Sec :2(a)
Appropriate Govt.
Central Govt.
State Govt.
Industry or controlled
industry carried on Any other
under central govt. establishment
Railway, Cantonment
board, major port,
mine, oil field,
Banking or insurance
company

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Sec 2(b • In relation to establishment any person whether
Contractor contractor, agent, employee or otherwise
• Undertakes to produce given result
• other than mere supply of goods or articles of
manufacture to such establishment
• by the employment of workmen or to supply
workmen
• includes a sub-contractor, Khatadar, Sardar,
agent or any other person, by whatever name
called, who recruits or employs workmen
Sec 2(c) • means any industry the control of which by the

Controlled Industry Union has been declared by any Central Act to be
expedient in the public interest
Sec 2(d) • any office or department of the Government or a

Establishment local authority
• any place where any industry, trade, business,
manufacture or occupation is carried on
Sec 2(e) • any person who is recruited by or through a

Inter state Migrant contractor in one State
Worker • an agreement or other arrangement for
employment in an establishment in another State
• whether with or without the knowledge of the
principal employer

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Sec 2(g)
Principal Employer
Dept of Govt.
Other
or Local Factory Mine establishment
authority
Owner, Owner, agent

Head of dept. occupier or or manager of Person
manager mine responsible for
control and
supervision
Sec 2(h) • entering into any agreement or other

Recruitment arrangement for recruitment
Sec 2(i) • As defined under payment of wages Act

Wages
Sec 2(j) • any person employed in or in connection with the

Workmen work of any establishment
• to do any skilled, semi-skilled or unskilled,
manual, supervisory, technical or clerical work
for hire or reward
• whether the terms of employment be express or
implied
• Does Not Include
• employed mainly in a managerial or
administration capacity
• employed in a supervisory capacity, draws wages
exceeding 500 per mensem
REGISTRATION OF ESTABLISHMENTS EMPLOYING INTER-STATE MIGRANT

WORKMEN

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Sec 3 • Appropriate Govt by notification appoint
Appointment of • appoint persons, being officers of Government,
Registering Officers as Registering officer
• define the limits, within which a registering
officer shall exercise the power
Sec 4 • Every principal employer of an establishment

Registration of certain ,make an application to the registering officer in
establishment fixed period, in prescribed from and fee.
• registering officer may entertain any such
application for registration after the expiry of the
period fixed
• Within 1 month of receipt of application
a) if the application complete, register the
establishment and issue to the principal employer of
the establishment a certificate of registration in the
prescribed form
b) if the application is not so complete, return the
application to the principal employer of the
establishment.
the registering officer shall, within 15 days of the
receipt of an application register the establishment and
issue to the principal employer a certificate of
registration (if a& b not followed)
Sec 5 • obtained by misrepresentation or suppression of

Revocation of any material fact
registration in certain • the registration has become useless or ineffective
case and, requires to be revoked.
• after giving an opportunity to the principal
employer to be heard and with the previous
approval of the appropriate Government,
• revoke by order in writing the registration and
communicate the order to the principal employer
Sec 6 • No principal employer employ inter-State migrant
Prohibition against workmen, unless has certificate of registration
employment of inter-
State migrant workmen
without registration
LICENSING OF CONTRACTORS
Sec 7 The appropriate Government may, by order notified in
Appointment of the Official Gazette
licensing officers (a) appoint persons, being officers of Government, as
licensing officers
(b) define the limits, within which a licensing officer
shall exercise the jurisdiction and powers conferred on
licensing officers by or under this Act.
Sec 8 • Appropriate Govt. may appoint contractor to

Licensing of contractors

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a) recruit any person in a State for the purpose of
employing him in any establishment situated in another
State
b) employ as workmen for the execution of any work in
any establishment in any State, persons from another
State (whether or not in addition to other workmen)
But not if
• who has jurisdiction in relation to the area
wherein the recruitment is made or the area
where establishment is located
Sec 9 • Every application for the grant of a license shall
Grant of licenses be made in prescribed format
• contain the particulars regarding the location of
the establishment, the nature of process,
operation or work for which inter-State migrant
workmen are to be employed
• The licensing officer may make investigation
• shall be valid for the period specified and may
be renewed from time to time for such period and
on payment of such fees.
Sec 10 • a license granted has been obtained by
Revocation, misrepresentation or suppression
suspension and • the holder of a license has, without reasonable
amendment of cause, failed to comply with the conditions ,
licences contravened the provisions.
Sec 11 Any person aggrieved in sec 4, 5, 8 10,

•
Appeal within 30 days from the date on which the order
•
is communicated to him, prefer an appeal to an
appellate officer appointed by the appropriate
Government
• appellate officer may entertain the appeal after
the expiry of the said period of 30 days
• On receipt the appellate officer shall, after giving
the appellant an opportunity of being heard,
dispose of the appeal as expeditiously as
possible.
Sec 12: DUTIES AND OBLIGATIONS OF CONTRACTORS
Furnish particulars to • Within 15 Days in prescribed form

Authority • to the specified authority in the State from
which an inter-State migrant workman is
recruited
• and in the State in which such workman
is employed.
issue to every inter-State • a pass book affixed with a passport size

migrant workman photograph of the workman and
indicating in Hindi and English languages
or in workmen’s language

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(i) the name and place of the establishment
wherein the workman is employed;
(ii) the period of employment;
(iii) the proposed rates and modes of payment of
wages;
(iv) the displacement allowance
(v) the return fare payable to the workman on the
expiry of the period of his employment
(vi) deductions made
every inter-State migrant • to the specified authority in the State
workman who cease from which he is recruited
• and in the State in which he is employed,
• which shall include a declaration that all
the wages and other dues payable to the
workman
• the fare for the return journey back to
his State have been paid.
WAGES, WELFARE AND OTHER FACILITIES
Sec 13 • same or similar kind of work as is being performed

Wage rates and other by any other workman in that establishment
conditions of service • inter-State migrant workman shall in no case be
paid less than the wages fixed under the Minimum
Wages Act, 1948
• wages be paid in cash.
Sec 14 • paid by the contractor to every inter-State

Displacement migrant workman at the time of recruitment
allowance • A displacement allowance = 50 % of the
monthly wages payable to him or 75 RS,
whichever is higher
Sec 15 • A journey allowance of a sum not less than the fare

Journey allowance, from the place of residence of the inter-State
etc. migrant workman in his State to the place of work
in the other State
• payable by the contractor to the workman both for
the outward and return journeys
• workman shall be entitled to payment of wages
during the period of such journeys as if he were on
duty
Sec 16 (a) regular payment of wages

Other facilities (b) equal pay for equal work irrespective of sex
(c) suitable conditions of work to such workmen having
regard to the fact that they are required to work in a
State different from their own State
(d) suitable residential accommodation
(e) medical facilities to the workmen, free of charge
(f) to provide such protective clothing

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(g) in case of fatal accident or serious bodily injury to any
such workman, to report to the specified authorities of
both the States and also the next of kin of the workman
Sec 17 • A contractor shall be responsible for payment

Responsibility for • Every principal employer shall nominate a
payment of wages representative to be present at the time of
disbursement of wages by the contractor
• duty of the contractor to ensure the disbursement
of wages in the presence of the authorized
representative of the principal employer
• If contractor fails, then the principal employer
shall be liable to make payment of the wages in full
or the unpaid balance due
• recover the amount so paid from the contractor
either by deduction from any amount payable
Sec 18 • If any allowance to be paid to an inter-State

Liability of principal migrant workman, not paid by the contractor or if
employer in certain any facility, such allowance , the facility shall be
case provided, by the principal employer within such
time as may be prescribed.
• recover the amount so paid from the contractor
either by deduction from any amount payable
Sec 19 • duty of every contractor and every principal
Past liabilities employee
• any loan given by such contractor or principal
employer to any inter-State migrant workman does
not remain outstanding after the completion of the
period of employment
• obligation of an inter-State migrant workman to
re-pay any debt obtained by him during the period
of his employment.
INSPECTING STAFF
Sec 20 • The appropriate Government may, by notification
Inspector in the Official Gazette, appoint inspectors
• Inspector can enter, at all reasonable hours if he
has reason to believe that any inter-State migrant
workmen are employed
• the payment of wages, conditions of service, or
facilities to be provided to such workmen are being
complied
• examining any register or record or notice
• examine any person found in any such premises
or place
• require any person giving out work to any
workman, to give any information
• seize or take copies of such register, record of
wages
• exercise such other powers as may be prescribed

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Sec 21 • Inter-State migrant workmen to be deemed to be
in employment from date of recruitment for the
purposes of certain enactment
Sec 22 • Provisions regarding industrial disputes in relation
to inter-State migrant workmen
Sec 23 • Every principal employer and every contractor
Registers and other shall maintain such registers and records giving
records to be such particulars of the inter-State migrant
maintained workmen employed, the nature of work performed
by such workmen, the rates of wages paid to the
workmen
• shall keep exhibited in premises
Sec 24 • obstructs an inspector : Imprisonment of 2 years
Obstruction and fine of Rs. 2000 or both
• wilfully refuses to produce any register or other
document :Imprisonment of 2 years and fine of Rs.
2000 or both
Sec 25 • Imprisonment of 1 years and fine of Rs. 1000 or
Contravention of both
provisions regarding • continuing contravention: Rs 100 per day
employment of inter-
State migrant
workmen
Sec 26 • Imprisonment of 2 years and fine of Rs. 2000 or

Other offences both
Sec 27 • Where an offence under this Act has been

Offences by companies 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
offence and shall be liable to be proceeded against
and punished accordingly

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Sec 13:Wage Rate Sec 14 : Displacement Allowance

i)same rate for similar kind of work i)paid by the contractor ,at time of
ii)shall not be paid less than the wages recruitment
fixed under the Minimum Wages Act, 1948 ii)displacement allowance = 50 % of the
iii)wages be paid in cash monthly wages payable to him or 75 RS
Facilities of Inter
state migrant
worker
Sec 15 :Journey Allowance
Sec 16 : Other Facilities i)By contractor, both for the outward and
i)Equal and timely payment of wages return journeys
ii) Residential accommodation ii)sum not less than the fare from the place
of residence of the inter-State migrant
iii)Medical facilities workman in his State to the place of work
iv)Protective clothes in the other State
iii)Payment of wages during journey
……………………………………………………………………………………………………………………………………………………………

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Labour Legislations

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You Study We Mentor

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 1|Page

• Doctrine of vested Interest: - It states that wages and other conditions

Now, Let’s see some of the important definitions-

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 2|Page

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 3|Page

• Immunity from Criminal Conspiracy: - An office-bearer or member of a

• Payment of salaries, allowances and expenses to office-bearers of the trade

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 4|Page

Dissolution of a Registered Trade Union

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 5|Page

Recommendations of The Second NCL (2002) Some of the more notable

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 6|Page

Employees’ Compensation Act, 1923

Defence Mechanisms available to the employer in such compensation cases under

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 7|Page

Doctrine of Contributory Negligence:

Doctrine of Common Employment and Fellow Servant’s Responsibility:

Doctrine of Unknown Person’s Responsibility:

• Part-I-List of injuries deemed to result in permanent total disablement

****Schedule II-List of persons who, are included in the definition of workmen

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 8|Page

Main features of the Act

Who will be receiving the compensation on behalf of the deceased?

• widow or a minor- who is a son(minor) or unmarried daughter

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 9|Page

"Managing agent"Sec.-2(f)- means any person appointed or acting as the

1. You must be an employee of the Company or Organization.

If the accident had occurred on account of a risk which is an incident of the

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 10 | P a g e

In the matter of the S. Palanivel v. Deputy Commissioner of Labour, Salem,the

**** Doctrine Of Notional Extension –

➢ Notional Extension of employer’s premises does include the time when he

Employer's Liability for Compensation. [Sec 3]

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 11 | P a g e

If an employee employed in any employment specified in Part A of Schedule III

If an employee is employed in any employment specified in Part B of Schedule

If an employee is employed in any employment specified in Part C of Schedule

Amount of Compensation (Section-4)

1. Compensation in Case of Death:

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 12 | P a g e

2. Compensation in case of Permanent Total Disability (PTD)

3. Compensation in case of Permanent Partial Disability (PPD)

4. Compensation in case of Temporary Disability (Total or Partial)

Note: - The half-monthly payment shall be payable on the sixteenth day-

In case of temporary disablement, payments equal to 25 % of the workers' wages

Compensation to be paid when due and penalty for default: -Section-4A

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 13 | P a g e

Section - 5. Method of calculating wages. –

Review (Sec- 6) for Temporary Disablement

If workman condition is improving, employer can make an application to the

If the accident is found to have resulted in permanent disablement, be converted to

Commutation of Half-Monthly Payments [Sec 7]

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 14 | P a g e

Distribution of Compensation. [Sec 8]

Employer should deposit the workman compensation with the commissioner.

The deposited compensation to workman shall be paid through the commissioner

If no dependent is there for deceased (dead) workman, there is no necessity to pay

If the workman dependent is of legal disability ((a minor), or mental capacity) or

Notice and claim: -(Sec-10)

Power to Require from Employers Statements Regarding Fatal Accidents. [Sec

We Are Specialized in- ALC/LEO/APFC/PSU(HR)/UGC NET(Code-55)/ADMIN(Officer) Exam 15 | P a g e

• If employer accepts the liability to pay the compensation to the workman,

• If employer rejects the liability to the compensation to the workman,