Professional Documents
Culture Documents
Labour Welfare
Labour Welfare
1 – 24
ANNAMALAI UNIVERSITY
DIRECTORATE OF DISTANCE EDUCATION
LABOUR WELFARE
LESSONS : 1 – 24
Copyright Reserved
(For Private Circulation Only)
M.B.A. HUMAN RESOURCE
MANAGEMENT
Second Year
Editorial Board
Members
Internals
Dr. K. Anandanatarajan Dr. T. Vezhavan
Assistant Professor Department Assistant Professor Department
of Business Administration of Business Administration
Annamalai University Annamalai University
Annamalainagar Annamalainagar
Externals
Dr. S. Kaliyamoorthy Dr. B. Rajasekar
Director Alagappa Institute of Management Professor and Head Department
Alagappa University of Business Administration
Karaikudi University of Madras
Chennai
Lesson Writer
Dr. N. Shibu
Professor and Head
Department of Management Studies
Bharathidasan University College
Perambalur
M.B.A. HUMAN RESOURCE
MANAGEMENT
Second Year
SYLLABUS
Unit–I
Labour Welfare: Meaning, Scope and Significance – Labour Welfare Agencies -
Labour Welfare Officer – Qualities of Welfare Officer- Types of Welfare Services-
statutory measures for welfare provisions- Growth and Concept of labour welfare in
India.
Unit–II
Terminology and Meaning of Fringe Benefits- History and Growth of Fringe
Benefits in India – Coverage of Benefits- Administration of Benefits and Services –
Problems Raised by Benefit Programs- Human Needs: Meaning- The Changing
Nature of Human Needs- The Major Role in Need Fulfillment.
Unit–III
Welfare Officers Role & Responsibilities – Duties of Welfare Officers- Training
of Welfare Officer – Aims and Objectives of Workers Education- Recommendations
of National Commission on Labour, Meaning of Fatigue- Monotony and Boredom-
Methods for Reducing Fatigue.
Unit–IV
Significance of Occupational Health - Occupational Hazards and Diseases-
Protection Against Health Hazards - Statutory Provisions under Factories Act 1948-
Industrial Accident- Nature of Accident- Causes of Accident- Accident
Measurement- Basis of Safety Programme and Policy- Industrial Medical Officer.
Unit–V
Laws of Working Condition- Factories Act- Shops and Establishment
Act- Mines Act – Plantation Labour Act – Indian Merchants Shipping Act - Laws on
Social Security
Unit–VI
Workers Compensation Act - Maternity Benefits Act – Employees Provident
Fund Act- Payment of Gratuity Act- ESI Act.
Reference Books
1) N.G. Nair “Personal Management and Industrial Relations”, 2012.
2) R.C. Sexane “Labour Problems and Social Welfare”, 1981.
3) A.M.Sharma “Aspects of Labour Welfare and Social Security”, Himalaya
Publishing House, 2013.
4) C.B.Memoria – “Dynamic of Industrial relations in India”, Himalaya Publishing
House, 2008.
Journals and Magazines
1) The Indian labour Journal.
2) Asian Journal of Management Research.
3) Journal of Contemporary Research in Management.
4) International Journal of Humanities and Social Sciences.
Web Resources
1) delhi.gov.in/DoIT_planning/wt189.pdf
media.scribleindia.com/.../industrial-relations-and-labour-welfare.pdf
ii
watching)
2. can be fulfilled by providing a consistent fair and concerned
attention to workers (competence needs / need for security)
3. can be fulfilled by going praise for the work done well (Competence
need / Reputation need)
4. can be fulfilled by delegation of authority. (Need for power / Need
for security)
8.8 SUPPLEMENTARY MATERIALS
1. Industrial Relation Labour Welfare and Labour Laws by B.Nandhakumar.
2. N.G.Nair “Personnel Management and Industrial Relations”, 2012.
3. R.C.Saxam “Labour Problems and Social welafare”, 1981.
8.9 ASSIGNMENTS
1. Identify the ways and means of fulfilling the needs of workers.
2. Discuss the management ways of fulfilling needs?
3. Identify the Reputation Need, Need for power for managers in Prodn centre
and for Managers in personnel Dept. Do they differ? If yes why? If not why?
4. Discuss the management techniques of satisfying various needs of
employees?
8.10 SUGGESTED READING / REFERENCE BOOKS
1. Richardson, J.H. “An Introduction to the study of Industrial Relations” 1954.
2. Personnel Management and Industrial Relations by LP.C. Tripathi.
3. Michael Armstrong OP cit.
8.11 LEARNING ACTIVITIES
1. Discuss with the Top level managers of 2 different organization. List out the
ways by which they are able to fulfill the need of employees.
2. Discuss with employees of 5 different organization. Does their need for
competence. Vary? Why/why not?
8.12 KEY WORDS
1. Reputation
2. Hospitalization
3. Fulfillment
4. Advocacy
5. Satisfiers
6. Decolonization
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UNIT – III
LESSON - 9
3. Mercury poisoning
Mercury is a highly poisonous substance, and when inhaled, causes toxic
effects. Barometer and thermometer makers, laboratory workers, electric meter
repairers, refiners of gold and silver are normally the persons who come in frequent
contact with this substance. Long and continued inhalation of even small amount of
mercury vapour affects the brain. Absorption of mercury through skin causes
eczema.
4. Manganese poisoning
Manganese dioxide is poisonous. Inhalation and absorption of its dust of
fumes results in inflammation of lungs. Manganese miners, ferro-manganese
workers and dry cell battery makers are likely to be affected by it.
5. Anthrax
This is a disease of animals. Men engaged in handling wool, hair bristles or
animal carcases or their parts including hides, hoofs and horns are likely to be
affected by it. The germs enter the skin through a cut or scratch on it. Woollen
carpet makers, tannery workers and wool sorters should be careful about it.
6. Silicosis
It is caused by inhaling dust containing silica. Silica is present in rocks, clays,
common sand and sandstones. Workers in potteries and ceramics, metal grinding,
refectories, slate pencil mines and similar such occupations are effected by it. It
gradually eats away the lungs causing respiratory trouble in the beginning and
ends in spitting of blood and a painful death. This disease is incurable.
7. Asbestosis
It affects workers engaged in handling and crushing of crude asbestos, and
making of asbestos mattresses.
8. Bagssois
It is an occupational disease of the lungs caused by inhalation of bagasse or
sugar cane dust. The symptoms consist of breathlessness, cough haemoptysis, and
slight fever. The preventive measures for bagassois are dust control, personal
protective equipment and periodic medical examination.
9. Coal miner’s pneumoconiosis
It may be caused due to employment in coal mining.
10. Telegraphists cramp
Telegraphists suffer from this disease because of the degree of accuracy, speed
of work and concentration required for the job.
11. Caisson disease
Those working caisson on harbour construction or in the building of tunnels
may suffer from this disease. It occurs when certain harmful gases get dissolved in
blood cells.
12. Byssionosis
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It affects the lungs of the textile workers due to inhalation of cotton fibre dust
over a long period of time.
13. Skin disease
These disease are caused by such irritants as acids, solvents, bases and the
like.
Protective Measures for Occupational Diseases
There are two aspects of preventive and curative measures for occupational
diseases:
1. Preventive measures
2. Curative measures.
1. Preventive measures
Preventive measures include:
(a) Pre-employment and periodic medical examination
(b) Removal of health hazards to the extent possible;
13.4 REVISION POINTS
There are five different types of occupational Hazards like Physical Hazards,
chemical Hazards Biological Hazards, Mechanical Hazards & psychological Hazards
based on his occupation. An Industrial worker is exposed to various occupational
diseases like lead poisoning, phosphorous poisoning, Mercury poisoning,
Manganese poisoning & Skin Diseases.
13.5 INTEXT QUESTIONS
1. What are the different types of occupational diseases?
2. What are the various types of occupational hazards?
3. Define occupational disease.
4. What are the objectives of occupational Health service.
13.6 SUMMARY
Occupation has its own Hazards. One should take adequate & proper
precautions for protection. Occupational health deals with work related disorders
and all factors that affect community health within it. Working conditions and
employment has major implications for employee health. Occupational disease is a
health problem caused by exposure to work place health hazard. Work place should
therefore be healthy for Body & Mind of workers.
13.7 TERMINAL EXERCISES
1. Find out the Recommendations of National Commission on Labour against
health Hazards.
2. “Prevention is Better than Cure of an occupational Diseases”? Discuss.
13.8 SUPPLEMENTARY MATERIALS
1. Arun Kumar, Rachana Sharma, Personnel management, Theory and Practice.
2. T.N. Chhabra, R.K.Suri, Industrial Relations concepts & Issues.
3. P.Sravanavel - Labour Legislation.
8
4. HRD News Letter,
5. Kapoor T.N. Personnel Management & Industrial Relations India.
13.9 ASSIGNMENTS
Go around you Town. List out the various industrial establishments a
available, find out occupational Hazards & Diseases that employees who work there
are facing.
13.10 SUGGESTED READING / REFERENCE BOOKS
1. Personnel Management & Industrial relations By P.C. Tripathi
2. Lyons T.P., The Personnel Function in changing Environment.
3. Industrial Relations, Labour welfare & Labour Laws By B.Nandha Kumar
4. Indian Journal of Industrial Relations
5. Labour Chronicle
13.11 LEARNING ACTIVITY
1. Find out the various occupational Hazards & diseases that have affected
industrial worker in India over the past 10 years.
12. KEY WORDS
1. Hazards
2. Occupational
3. Diseases
4. Preventive
5. Curative
6. Radiation
8
LESSON - 14
STATUTORY PROVISIONS UNDER FACTORIES ACT 1948
14.1 INTRODUCTION
In common parlance, invariably Factory & Industry are understood as Inter
changeable. This is incorrect. The existing law relating to regulation of labour
employed in Factories in India is embodied in Factories Act 1934. Experience of
working of the Act has received a number of defects and weaknesses which hamper
effective administration. Although the Act has been amended in certain Respects in
a piecemeal fashion when ever some particular aspect of Labour safety or welfare
assumed urgent importance, the general frame work has remained unchanged. The
provisions for the safety, health and safety, health and welfare of workers are
generally found to be inadequate and unsatisfactory and even such protection as is
provided does not extend to the large and growing industrial activities in the
country.
14.2 OBJECTIVES
After Reading the chapter you should be able to:
Understand the statement of objects, reasons and definition of factories Act.
Know the duties and responsibilities of Inspector of factories.
Understand the health, welfare and safety provisions.
14.3 CONTENTS
Health Provisions
Under the Factories Act, 1948, and the rules framed thereunder, the
employers have to make sure health provisions such as general cleanliness of the
workplace, disposal of wastes and effluents, ventilation and temperature, dust and
fume, artificial humidification, lighting, drinking water, conservancy arrangements
and spittoons.
1. Cleanliness
Section II of the Factories Act, 1948 provides for general cleanliness of the
factory. It lays down that dust, fumes and refuse should be removed daily; floors,
staircases, and passages should be cleaned regularly by sweeping and other
effective means while washing of interior walls and roofs should take place at least
once in 14 months, and where these are painted with washable water paint, be
repainted after every three years and where oil paint is used at least once in five
years. Further, all doors and window frames and other wooden or metallic
framework and shutters should be kept painted or varnished and the painting or
varnishing shall be carried out at least once in five years.
2. Disposal of wastes and effluents
Section 12 of the Factories Act makes it obligatory on the owner of every
factory to make effective arrangements for the treatment of wastes and effluents
due to the manufacturing process carried on therein, So as to render them
innocuous for their disposal.
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3. Ventilation and temperature
The occupier is required to make effective and suitable provisions for securing
and maintaining in every workroom adequate ventilation for the circulation of fresh
air and to maintain such temperature as will secure to workers reasonable
conditions of comfort and prevent injury to health.
4. Dust and Fume
Section 14(1) deals with the measures, which should be adopted to keep the
workrooms free from dust and fume. Every factory in which by reason of the
manufacturing process carried on, there is given off any dust of 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 therein, or any dust in substantial quantities,
effective measures shall be taken to prevent its inhalation and accumulation in any
workroom. If any exhaust appliances is necessary for the above purpose, it shall be
applied as near as possible to the point of or origin of the dust, fume or other
impurity and such point shall be enclosed as far as possible.
5. Artificial humidification
Section 15(1) lays down that in respect of all factories in which the humidity of
the air is artificially increased, the State Government may make rules
a) Prescribing standard of humidification;
b) Regulating the methods used for artificially increasing the humidity of the air;
c) Directing prescribed tests for determining the humidity of the air to be
correctly carried out and recorded;
d) Prescribing methods to be adopted for securing adequate ventilation and
cooling of the air in the workroom; and
e) Overcrowding.
To control overcrowding, the Factories Act prescribed that no room of any
factory shall be overcrowded to the extent that it becomes injurious to the health of
the workers. The Act further prescribes that in every workroom, each worker
should be provided with a minimum space of 9.9 cubic meters which was there on
the commencement on this Act in 1948 or 4.2 cubic meters after such
commencement (Section 16).
6. Lighting
Section 17(1) provides that in every part of the factory, where workers are
working or passing, there shall be provided and maintained sufficient and suitable
lighting, natural or artificial or both.
7. Drinking water
Section 18 deals with the provisions relating to arrangements for drinking
water in factories. Subsection (1) provides that in every factory, effective
arrangements shall be made to provide and maintain at suitable points
conveniently situated for all workers employed therein, a sufficient supply of
wholesome drinking water.
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8. Conservancy arrangements
Section 19 provides that, in every factory, there shall be provided and
maintained, separate arrangement for toilets for and female workers at convenient
places. These should be adequately lighted, ventilated and maintained in a clean
sanitary condition.
9. Spittoons
Section 20(1) lays down that in every factory, there shall be provided a
sufficient number of spittoons convenient places. They shall be maintained in a
clean and hygienic condition.
Safety Provisions
Provision of safety inside the workplace under the Factories Act provide for
ensuring sufficient guidelines for fencing of machinery, work on or near machinery
in motion, employment of young person’s on dangerous machine, striking gear and
devices for cutting off power, self-acting machines, casing of new machinery,
prohibition of employment of women and children near cotton openers, hoists and
lifts, revolving machinery, pressure plant, pits, sump and opening in floors,
precautions against dangerous fumes and gases, precautions against using
portable electric light, explosive or inflammable materials, precaution in case of fire,
safety of building and machinery, maintenance of buildings, and the appointment
of safety Officers in factories. The statutory requirements in the Act are enforced by
the factory inspectorates set up in the State for the purpose. The above said safety
provisions are explained broadly as below.
1. Fencing of machinery
Section 21(1) requires that in every factory, the following must be securely fenced
by safeguards of substantial construction while the machinery are in motion or use:
1. Every moving part of prime mover, whether the prime mover or flywheel is in
the engine house or not
2. The headrace and tailrace of every waterwheel and water turbine
3. Any part of stockbar which projects beyond the head stock of lathe
4. Unless they are in such position or of such construction as to be safe to every
person employed in the factory as they would be if they were securely fenced,
the following, namely,
5. Every part of electric generator, a motor or rotary converter;
6. Every part of transmission machinery; and
7. Every dangerous part of any other machinery.
shall be securely fenced by safeguards of substantial construction which shall
be consistently maintained and kept in position while the parts of machinery they
are fencing are in motion or in use.
2. Work on or near machinery in motion
Section 22(1) requires that it is essential to examine any part of the machinery
(referred in Section 21) while it is in motion or as a result of such examination. It is
necessary to carry out
1. Lubrication or other adjusting operation; or
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2. Any mounting or shipping of belts or lubrication or other adjusting operation.
Such examination or operation shall be made or carried out only by a specially
trained adult male worker wearing tight-fitting clothing (which shall be supplied by
the occupier) whose name has been recorded in the register prescribed in this
behalf and who has been furnished with a certificate of his appointment, and while
he is so engaged
a) Such worker shall not handle a belt at a moving pulley unless
i) The belt is not more than fifteen centimetres in width;
ii) The pulley is normally for the purpose of drive and not merely a flywheel or
balance wheel (in which case a belt is not permissible);
iii) The belt joint is either laced or flushed with the belt;
iv) The belt, including the joint and the pulley rim, are in good repair;
v) There is reasonable clearance between the pulley and any fixed plant or
structure;
vi) Secure foothold and, where necessary, secure handhold, are provided for
the operator; and
vii) Any ladder in use for carrying out any examination or operation aforesaid
is securely fixed or lashed or is a firmly held by a second person.
b) Without prejudice to any other provision of this Act relating to the fencing of
machinery, every set screw, bolt and key on any revolving shaft, spindle, wheel,
or pinion, and all spur, worm and other toothed or friction gearing in motion
with which such contact.
3. Employment of young persons on dangerous machine
Section 23 prohibits the employment of a young person on dangerous machine
unless he has been fully instructed as to the dangers arising from machine and the
precautions to be observed, and (i) has received sufficient training in work at the
machine, or (ii) is under adequate supervision by a person who has a through
knowledge and experience of the machine.
Section 10 of the Factories Act stipulates the appointment of certified surgeons
by the State Government. Qualified practitioners are appointed as certified
surgeons and they are required to carry out such duties as
a) Examination and certification of young person’s;
b) Examination of persons engaged in factories which have dangerous
occupations or processes as may be prescribed; and exercising medical
supervision.
4. Striking gear and devices for cutting off power
In order to move the driving belt from pulleys in transmission machine and to
prevent the belt from creeping back into the fast pulley, suitable striking gear or
other efficient mechanical appliance shall be provided, maintained and used. No
driving belt when unused shall be allowed to rest or ride upon shafting in motion.
Suitable devices are also maintained in every workroom for cutting off power
emergencies.
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5. Self-acting machines
Section 25 of the Factories Act provides further safeguards to the workers
injured by self-acting machines. It provides that no traversing part of self-acting
machine in any factory and no material carried thereon shall, if the space over
which it runs is a space over which any person is liable to pass, whether in the
course of his employment or otherwise, be allowed to run on its outward or inward
traverse within a distance of forty-five centimeters from any fixed structure which
is not part of the machine.
6. Casting of new machinery
Section 26(1) provides that in all machinery driven by power, after the
commencement of the Factories Act, 1948, every set screw, bolt or key on any
revolving shaft, spindle, wheel or pinion shall be sunk, encased or effectively
guarded as to prevent danger (Section 26(20). Further, all spur, worm and other
toothed or friction gearing not requiring frequent adjustment while in motion shall
be completely encased, unless they are safely situated. Furthermore, Section 26(2)
provides that, whoever sells or lets on hire or, as agent of the seller or hirer, cares
or procures to be sold or let on hire, for use in a factory any machinery driven by
power which does not comply with the provisions of Subsection (1), or any rules
made under Subsection (3), shall be punishable with imprisonment for a term
which may extend to three months or with fine which may extend to Rs.500, or
with both. Under the act, the State Government is empowered to make rules for the
safeguards to be provided from dangerous part of the machinery.
7. Prohibition of employment of women and children near cotton openers
The Factories Act prohibits the employment of women and children in any part
of the factory for pressing cotton where the cotton opener is at work. But if the feed-
end of cotton opener is in a room separated from the delivery and by a partition
extending to the roof or to such heights as the Inspector may in any particular case
specify in writing, women and children may be employed on the side of the partition
where feed-end is situated (Section 27).
8. Hoists and lifts
Section 28(1) requires that hoists and lifts must be of good mechanical
constructions, sound material and adequate strength. They should not only be
properly maintained but also thoroughly examined at least twice a year by
competent personal.
9. Revolving machinery
Section 30(1) provides that a notice indicating the maximum safe working
peripheral speed of the grindstone or abrasive wheel, the speed of the shaft, or
spindle, must be permanently affixed on all rooms in a factory where grinding is
carried on and the speeds indicated in notices under Subsection (1) shall not be
exceeded (Subsection (2) of Section 39). Similarly, care should be taken not to
exceed the safe working peripheral speed of every revolving machine like revolving
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vessel, cage, basket, flywheel, pulley, disc or similar appliances run by power
(Subsection (3) of Section 30).
10. Pressure Plant
Section 31 (1) provides that effective measures should be taken ensure safe
working pressure of any part of the plant or machinery used in the manufacturing
process operating at a pressure above the atmospheric pressure.
11. Pits, sump and opening in floors
Section 33(1) of the Factories Act, requires that every fixed vessel, sump, tank,
pit or opening in the ground or in the floor in every factory should be covered or
securely fenced, it by reason of its depth, situation, construction or contents, they
are or can be a source of danger.
Section 33(2) empowers the State Government to grant exemption from
compliance of the provision of this Section
i) In respect of any item mentioned in the Section;
ii) To any factory or class of factories, and
iii) On such condition as may be provided in the rules.
12. Precautions against dangerous fumes and gases
In order prevent factory workers against dangerous fumes, special measures
have been taken under the Factories Act. The Act prohibits entry in any chamber,
tank, vat, pit, pipe, flue, or other confined space in any factory in which any gas,
fume, vapour or dust is likely to be present, to such an extent as to involve risk to
persons being overcome thereby, except in cases where there is a provision of a
manhole of adequate size or other effective means of egress. [Section 36(1)]. No
person shall be required or allowed to enter any confined space as is referred to in
Subsection (1) until all practicable measures have been taken to actually remove
the gas, fumes or dust, which may be present so as bring its level within the
permissible limits and to prevent any ingress of such gas, fume, vapour or dust
[Section 36(2)].
13. Precaution against using portable electric light
The Act prohibits any factory from using portable electric light or any other
electric appliance of voltage exceeding 24 volts in any chamber, tank, vat, pipe, flue
or other confined space unless adequate safety devices are provided [Section
36A(a)]. The Act further prohibits the factory from using any lamp or light (other
than that of flame-proof construction) if any inflammable gas, fume or dust is likely
to be present in such chamber, tank, vat, pipe, flue or other confined space.
[Section 36A(b)].
14. Explosive or inflammable materials
Measures to prevent accidents from these materials include
i) Erecting effective enclosures of the plant or machinery used in the process;
ii) Removal or prevention of the accumulation of such dust, gas or varpour;
and
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iii) Exclusion of effective enclosure of all possible sources of ignition [Section
17(i)].
15. Precaution in case of fire
In every factory, all practical measures shall be taken to prevent outbreak of
fire and its spread, both internally and externally, and to provide and maintain (i)
safe means of escape for all persons in the event of fire, and 9ii) the necessary
equipment and facilities for extinguishing fire. Further, effective measures should
be taken to ensure that in every factory all the workers are familiar with the means
of escape in case of fire and the workers be trained in the routing to be followed in
such case (Section 38).
16. Safety of building and machinery
If its appears to the Inspector that any building or part of building or any part
of the ways, machinery or plant in a factory is in such a condition that it is
dangerous to human life or safety, he may serve on the occupier or manager (or
both) of the rectory an order in writing specifying the measures which in his
opinion should be adopted and requiring them to be carried out before a specified
date [Section 40(1)].
17. Maintenance of buildings
In order to ensure safety, the inspector is empowered to serve on the occupier
or manager (or both) of the factory an order specifying the measures to be taken
and requiring the same to be carried out if it appears to him that any building or
part of a building in a factory is in such a state of disrepair as is likely to lead to
conditions detrimental to the health and welfare of the workers (Section 40A).
18. Safety officers
In order to prevent accidents, the Act provides for the appointment of Safety
Officers in factories employing 1,000 or more workers, or where any manufacturing
process or operations are carried on, which involves any risk of bodily injury,
poisoning or disease, or any other hazard to health, to the persons employed in the
factory. (Section 40B).
Hazardous Process
Section 2 (cb) of the Factories (Amendment) Act, 1987, defines the term
‘hazardous process’ as any process or activity in relation to an industry specified in
the First Schedule where, unless special care is taken, raw materials used therein
or the intermediate or finished products, by-products, wastes or effluents thereof
would
a) Cause material impairment to the persons engaged in or connected therewith,
or
b) Result in the pollution of the general environment.
The State Government may, by notification in the Official gazette, amend the
First Schedule by way of addition, omission or variation of any industry specified in
the said Schedule. Let us discuss some of them.
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1. Constitution of Site Appraisal Committee
a) The State Government may, for the purpose of advising it to consider
applications for grant of permission for the initials location of a factory involving
hazardous process or for the expansion of any such factory, appoint a Site
Appraisal Committee consisting of:
i) The Chief Inspector of the State who shall be its Chairman;
ii) A representative of the Central Board for the Prevention and Control of
Water Pollution appointed by the Central Government under Section 3 of
the Water (Prevention and Control of Pollution) Act, 1974;
iii) A representative of the Central Board for the Prevention and Control of Air
pollution referred to in Section 3 of the Air (Prevention and control of
Pollution) Act, 1981;
iv) A representative of the State Board appointed under Section 4 of the Water
(Prevention and Control of Pollution) Act, 1974;
v) A representative of the Central Board for the Prevention and Control of Ari
Pollution referred to in Section 5 of the Air (Prevention and Control of
Pollution) Act, 1981;
vi) A representative of the Department of Environment in the State;
vii) A representative of the Meteorological Department of the Government of
India;
viii) An expert in the field of occupational health; and
ix) 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
x) A scientist having specialized knowledge of the hazardous process which
will be involved in the factory;
xi) A Representative of the local authority within whose jurisdiction the
factory is to be established; and
xii) Not more than three other persons as deemed fit by the State Government.
b) The Site Appraisal Committee shall examine an application for the establishment
of a factory involving hazardous process and makes it recommendations to the
State Government within a period ninety days of the receipt of such application
in the prescribed form.
c) Where any process relates to a factory owned or controlled by the Central
Government or to a corporation or accompany owned or controlled by the
Central Government, the State Government shall co-opt in the Site Appraisal
Committee representative nominated by the Central Government as a member
of that Committee.
d) The State 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.
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e) Where the State Government has granted approval to an application for the
establishment or expansion of a factory involving a hazardous process, it shall
not be necessary for an applicant to obtain a further approval from the Central
Board or the State Board established under the Water (Prevention and Control
of Pollution) Act, 1974, and Air (Prevention and Pollution) Act, 1981.
2. Completely discount of information by the occupies
a) The occupier of every factory involving a hazardous process shall disclose in the
manner prescribed all information regarding dangers, health hazards and the
measures to overcome them arising from the exposure to or handling of the
materials or substances in the manufacture, transportation, storage and other
process to
i) Workers employed in the factory;
ii) The Chief Inspector;
iii) The local authority, within whose jurisdiction the factory is situated; and
iv) General public in the vicinity.
b) Such information, shall include accurate information as the quantity,
specifications and other characteristics of wastes and manner of their disposal
(Subsection 3).
c) Every occupier, with the approval of the Chief Inspector, shall draw up an on-site
emergency plan and detailed disaster control measures for his factory and make
known to the workers employed therein and to the general public living in the
vicinity of the factory the safety measures required to be taken in the event of an
accident taking place. (Subsection 4).
d) Every occupier of the factory is under an obligation to inform the Chief Inspector
of the nature of details of the process in such form and in such manner as may
be prescribed. (Subsection 5)
e) On contravention of the provisions Subsection (5), the license issued under
Section 6 to such factory shall be cancelled and the occupier shall be liable to
penalty (Subsection 6).
f) The occupier of the factory involving a hazardous process shall, with the previous
approval of the Chief Inspector, lay down measures of handling, usage,
transportation and storage of hazardous substances inside the factory premises
and the disposal of such substances outside the factory premise and publicise
them in the vicinity. (Subsection 7).
3. Specific responsibility of the occupier in relation to hazardous process
Under Section 41C, every occupier of a factory involving any hazardous
process is to required to
a) maintain accurate and up-do-date health records, or a as the case may be,
medical records of the workers in the factory who are exposed to any chemical,
toxic or any other harmful substance which are manufactured, stored, handled
9
or transported, and such records shall be accessible to the workers subject to
prescribed conditions;
b) Appoint persons who possess qualifications and experience in handling
hazardous substances and are competent to supervise such handling within the
factory and to provide at the working place all the necessary facilities for
protecting the workers in the prescribed manner; and
c) Provide for medical worker is assigned to a job involving the handling of, or
working with, a hazardous substance, and
i) Before such worker is assigned to a job involving the handling of, or
working with, a hazardous substance, and
ii) While continuing in such job, and after he has ceased to work in such job,
at intervals not exceeding twelve months, in the prescribed manner.
4. Powers of Central Government to appoint Inquiry Committee
a) The Central Government may, in the event of the occurrence of an
extraordinary situation involving a factory engaged in hazardous process,
appoint an Inquiry Committee to inquire into the standards of health and
safety observed in the factory with a view to find out the causes of any failure
or neglect in the adoption of any measures or standards prescribed for the
health and safety of the workers employed in the factory or the general public
affected, or likely to be a affected, due to such failure or neglect, and the
prevention and the recurrence of such extraordinary situations further in
such factory or elsewhere.
b) The Committee appointed under Subsection (1) shall consist of a Chairman
and two other members and the terms of reference of the Committee and the
tenure of Office of its members shall be such as may be determined by the
Central Government according to the requirements of the situation.
The recommendation of the Committee shall be advisory in nature.
5. Emergency standards
a) Where in Central Government is satisfied that no standards of safety have
been prescribed in respect of a hazardous process or class of hazardous
process, or where the standards so prescribed are inadequate, it may direct
the Director General of factory advice service and labour institutes or any
institution specialized in matters relating to enforcement of suitable standards
in respect of such hazardous process.
b) The emergency standards laid down under Subsection (1) shall, until they are
incorporated in the rules made under this Act, be enforceable and have the
same effect as if they had been incorporated in the rules made under this Act.
6. Workers’ participants is safety management
a) 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 cooperation between the workers and management in maintaining
9
proper safety and health at work and to review periodically the measures
taken in that behalf:
Provided that the State Government may, by order in Writing and for reasons
to be recorded, exempt the occupier of any factory or class of factories form
setting up such Committee.
b) 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.
7. Right of workers to warm about imminent danger
a) 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
notice of the occupier, agent, manager or any other person who is incharge or
the factory or the process concerned directly or through their representative in
the Safety Committee and simultaneously bring the same to the notice of the
Inspector.
b) It shall be the duty of such occupier agent, manager or the person incharge of
the factory of process to take immediate remedial action if satisfied about the
existence of such imminent danger and send a report forthwith of the action
taken to the nearest Inspector.
c) If the occupier, agent, manager or the person incharge referred to in
Subsection (2) is not satisfied about the existence of any imminent danger as
apprehended by the worker, he shall, nevertheless, refer the matter forthwith
to the nearest Inspector whose decision on the question of the existence of
such imminent danger shall be final.
14.4 REVISION POINTS
Under Factory Act 1948 and the Rules framed there under the employers have
to make sure health provisions such as general cleanliness of work place, disposal
of wastes and effluents, ventilation and Temperature dust and fumes, Artificial
humidification, lighting, drinking water, conservancy arrangements and spittoons.
The provisions of safety under Factories Act 1948 include ensuring sufficient
guldens for fencing of Machinery, work on are near machinery in motion
employment of young persons dangerous machine striking gear & derces for cutting
off power, precaution against dangerous fumes & gases, precaution in case of fire
maintenance of buildings & safety of building & machinery.
14.5 INTEXT QUESTIONS
1. Explain statutory provisions with Regard to health & provisions under
factories Act.
2. Explain statutory provision relating to safety provisions under Factories Act.
3. Elaborate on the Hazardous process under Factories Act (Amendment) 1987.
14.6 SUMMARY
There are moral, Legal & Economic reasons for the employers to take the
Management of health, & safety seriously. Statutory provisions are one of the
primary tools in safety & maintaining good occupational health of employees.
9
14.7 TERMINAL EXERCISES
1. Visit any factory establishment near your house. Fund out if all the health
provisions, safety provisions are followed in such factories.
14.8 SUPPLEMENTARY MATERIALS
1. John Bratton & Jeffrey Gold “Human Resource Management”
2. R.Chandrasekhar, “The Buck stops Here”
3. Ibid, P.574
4. The Economic Times
5. Charles R.Greer. Op. Cit., P.423
14.9 ASSIGNMENTS
1. Discuss the circumstances under which the Manager may be exempted from
liability under Factories Act 1948.
14.10 SUGGESTED READING / REFERENCE BOOKS
1. The Economic Times - 1996
2. John Bratton and Jeffrey Gold - Op. Cit., P520
3. Industrial Relations Labour Welfare & Labour Laws By B.Nandhakumar
14.11 LEARNING ACTIVITY
1. Write down the various Sections 2(ii), Section 6, Section 11 to 20, Sec 21 to
28, Section 42 to 49, Sec 51, 54, to 56, 59 and 60, Sec 79 according to
Factories Act.
14.12 KEY WORDS
1. Ventilation
2. Over crowding
3. Creches
4. Occupier
5. Welfare Officer
6. Inspectors
7. Occupier
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LESSON - 15
INDUSTRIAL ACCIDENT, NATURE OF ACCIDENT AND
CAUSES OF ACCIDENT
15.1 INTRODUCTION
The success of any Industry depends on the productivity levels, quality of
product, safety, health & contentment of its workers. A safe & Healthy work
environment preventing accidents would motivate the work force and bring out the
best, increasing productivity safety & health.
15.2 OBJECTIVES
After reading the chapter you will be able to know
What is industrial accident?
What are the most common types of industrial accidents?
Causes of Industrial Accidents
Causes of Industrial Accidents noted by National commission on Labour.
15.3 CONTENTS
What is Industrial Accident?
Industrial accident refer to any accident that occurs at in industrial site.
Types of Industrial Accidents
Industrial accidents occur due to:
1. Trips, slips and falls
2. Strenuous activity or overexertion, such as lifting heavy objects, which often
results in injuries
3. Being struck by a falling or moving object
4. Stepping on or being caught between an object or several objects
5. Death or injuring resulting from collapse of buildings, walls, earth and rocks
6. Exposure to extreme temperatures, electrical currents, atmospheric
pressures and environments, or harmful substances and radiation
7. Exposure to harmful substances resulting in inhalation or ingestion.
Causes of Industrial Accidents: A Complex Phenomenon
Causes of industrial accidents can be studied under the following two broad
categories:
Unsafe condition
Unsafe acts
1. Unsafe conditions: The causes of industrial accidents that pertain to
unsafe conditions may include insufficient workplace lighting, excessive noise,
slippery or unsafe flooring, extreme temperature exposure, inadequate problems,
machine malfunction or failure, and so on.
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2. Unsafe acts: The causes of industrial accidents that involve unsafe acts
may include actions or failures to act which result in injury. This can be a result of
employee negligence, but employers, organizations, and product manufacturers can
also be liable for the causes of industrial accidents.
External and Internal Causes
The causes of industrial accidents can be in the environment around the
workplace or within the work environment.
External causes of industrial accidents may include fires, chemical spills,
toxic gas emissions or radiations. The causes of Industrial accidents in these cases
may include organizational errors, human factors, abnormal operational conditions,
natural forces, software or component failure, and outside interference.
Internal causes of industrial accidents may involve equipment or other work-
related tangibles, harmful materials, toxic chemicals and human error.
The causes of accidents can also broadly divided into the following five groups:
1. Technical causes
These are defective and worn-out machinery, poor maintenance, lack of
precautions like safeguards, fencing of dangerous machines, wrong and bad layout,
rooms crowded with machines, raw materials and waste products, neglect in
housekeeping and working conditions.
2. Personnel causes
These include recruitment, selection and placement in industries, personal
and social factor like carelessness, ignorance, inadequate skill, improper
supervisions, relationship with the supervisor and other colleagues, and family
problems.
3. Psychological causes
Psychological, mental and emotional imbalances are at the root of several
accidents. It is well-known that emotionally disturbed or mentally pre-occupied
persons meet with accident and face fatigue, tiredness, overwork, monotony,
boredom, and lack of self-confidence.
4. Non-observance of safety rules
The predominant cause of accidents is the sheer non-observance of industrial
safety rules.
5. Miscellaneous causes
a) Inability of the workers to grasp the implications of a process
b) Neglect of safety regulations by workers and their reluctance to use safety
equipment
c) Haste on the part of the workers, particularly when they are on incentive
payment schemes.
d) Liberal attitude taken by the ESI doctors in certification of accident injuries.
9
COST AND CONSEQUENCES OF INDUSTRIAL ACCIDENT
1. Direct cost of accidents
Accidents have also obvious, direct costs such as medical bills, hospital and
rehabilitation expenses, workers’ compensation payments, and higher insurance
premiums or even loss insurability.
2. Indirect and hidden costs of accidents
Accidents have also less obvious, indirect cost that are usually uninsured.
These include the various disruptions to normal work procedures, such as when
employees stop to help the injured employee or even a drop in production that
cause inconsistencies with delivery.
Indirect costs include
Time lost from work by injured employee(s);
Loss in earning power;
Economic loss to injured workers family;
Lost time by fellow employees;
Loss of efficiency due to break-up of crew;
Time lost in supervision;
Cost of breaking-in a new worker;
Damage to tools and equipment;
Spoiled work;
Loss of production
Spoilage due to fire, water, chemicals, explosives, etc;
Failure to fill orders; and
Overhead cost (while work was disrupted).
The following are some examples of hidden costs:
Production loss/worker distraction
Training costs/replacement of worker
Loss of skill/efficiency-slowed production
Paperwork
Administrative time
Loss of morale
Legal issues
Medical expenses
Wages
Equipment
3. Causes of Industrial Accidents Noted by National Commission on Labour
Some of the causes of industrial accidents noted by the National Commission
Labour are as follows:
1. Human failure due to carelessness, ignorance, inadequate skill, and improper
supervision.
2. Repaid industrialization
3. Expansion or modification of existing factories
4. Setting up of new industries involving hazards not known earlier
5. Lack of safety consciousness on the part of both workers and management
6. Inadequate realization of the financial implications of accidents.
9
WELFARE
1.24 Washing facilities
1) In every factory,
a) adequate and suitable facilities for washing shall be provided and
maintained for the 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.
2) The State Government may, in respect of any factory or class or description of
factories or of any manufacturing process, prescribe standards of adequate and
suitable facilities for washing.
1.25 Facilities for storing and drying clothing
The State Government may, in respect of any factory or class or description of
factories, make rules requiring the provision therein of suitable places for keeping
clothing not worn during working hours and for the drying of wet clothing.
1.26 Facilities for sitting
1
1) In every factory suitable arrangements for sitting shall be provided and
maintained for all workers obliged to work in a standing position, in order
that they may take advantage of any opportunities for rest which may occur
in the course of their work.
2) If, in the opinion of Chief Inspector, the workers in any factory engaged in a
particular manufacturing process or working in a particular room are able
to do their work efficiently in a sitting position, he may, by order in writing,
require the occupier of the factory to provide before a specified date such
seating arrangements as may be practicable for all workers so engaged or
working.
3) The State Government may, by notification in the Official Gazette, declare
that the provisions of sub-section (1) shall not apply to any specified factory
or class or description of factories or to any specified manufacturing
process.
1.27 First-aid appliances
1) 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.
2) Nothing except the prescribed contents shall be kept in a first-aid box or
cupboard.
3) Each first-aid box or cupboard shall be kept in the charge of a separate
responsible person who holds a certificate in first-aid treatment recognized
by the State Government and who shall always be readily available during
the working hours of the factory.
4) 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.
1.28 Canteens
1) 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 for the use of the workers.
2) Without prejudice to the generality of the foregoing power, such rules may
provide for,
a) the date by which such canteen shall be provided;
b) the standards in respect of construction, accommodation, furniture and
other equipment of the canteen;
1
c) the foodstuffs to be served therein and the charges which may be made
therefore;
d) the constitution of a managing committee for the canteen and
representation of the workers in the management of the canteen;
1.29 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
workers;
Provided further that where a lunch room exists no worker shall eat any food
in the work room.
2) The shelters or rest rooms or lunch rooms to be provided under sub-section
(1) shall be sufficiently lighted and ventilated and shall be maintained in cool
and clean condition.
3) The State Government may,
a) prescribe the standards in respect of construction, accommodation,
furniture and other equipment of shelters, rest rooms and lunch rooms
to be provided under this section;
b) by notification in the Official Gazette, exempt any factory or class or
description of factories from the requirements of this section.
1.30 Creches
1) 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.
2) Such rooms shall provide adequate accommodation, shall be adequately
lighted and ventilated, shall be maintained in a clean and sanitary condition
and shall be under the charge of women trained in the care of children and
infants.
3) The State Government may make rules,
a) prescribing the location and the standards in respect of construction,
accommodation, furniture and other equipment of rooms to be provided
under this section;
b) requiring the provision in factories to which this section applies of
additional facilities for the care of children belonging to women workers,
including suitable provision of facilities for washing and changing their
clothing;
c) requiring the provision in any factory of free milk or refreshment or both
for such children;
d) requiring that facilities shall be given in any factory for the mothers of
such children to feed them at the necessary intervals.
1
1.31 Welfare officers
1) In every factory wherein five hundred or more workers are ordinarily
employed occupier shall employ in the factory such number of welfare
officers as may be prescribed.
16.4 REVISION POINTS
This Act extents to whole of India, it come into force on 1 st April 1949. This Act
includes Health provision containing cleanliness, disposal of waste and effluents,
ventilation and temperature, dust and fume, artificial humidification, overcrowding,
lighting, drinking water, latrines and urinal, and spittoons. The safety provisions
include fencing of machinery; work on near machinery in motion, employment of
young person’s on dangerous machines, prohibition of employment of women and
children near cotton-openers, lift machines, revolving machinery, and pressure
plant. The welfare facilities include washing, first aid appliances, canteens, crè ches,
welfare officers.
16.5 INTEXT QUESTIONS
1. Define the term factory, occupier, adult, adolescent, young person, worker
and manufacturing process as used in the Factories Act, 1948.
2. Write a note on provisions relating to welfare facilities introduces by
Factories Act.
16.6 SUMMARY
As the employer prepares the environment, the law seeks to regulate the same
in the interests of the workman. The law provides for security of the place and
approval and plans and specifications before they are registered under the Act for
the purpose of ensuring health, safety and welfare of workers labour reforms in
India, in the context of globalization is much desired but also feared and ........
interpreted. This issue has been a sensitive one ever since the liberalization era
began under the Narasima Rao Govt. in early 1990.
16.7 TERMINAL EXERCISES
1. Discuss the circumstances under which the occupier or the manager may be
exempted from hobbies under Factories Act, 1948.
2. Discuss the safety measures provided for in the Factories Act, 1948 relating
to dangerous machine.
3. State the provisions in Factories Act, 1948 regarding annual leave with
wages.
16.8 SUPPLEMENTARY MATERIALS
1. Industrial relations, labour welfare and labour laws by B.Nandakumar
2. R.Chandrasekhar “The Bucks stops here, Macmillan.
3. Charles R.Greer OP. Cit.,
16.9. ASSIGNMENTS
1. Discuss provisions of Factories Act 1948 in India and in UK with special
reference to weekly holidays.
2. Factories Act 1948 does hold good in post era? Why / Why not.
1
16.10 SUGGESTED READINGS / REFERENCE BOOKS
1. John Brattion & Jeffery Gold, Human Resources Management, Palgrove
Macmillan 2003.
2. Ibid P.574.
3. The Economic Times April 9, 1996.
4. Charles R.Greer OP. Cit., P.423.
16.11 LEARNING ACTIVITIES
1. Discuss the Rules regarding approval, licensing & registration of factory.
2. Discuss the procedure of appointment of inspectors under Factories Act ,
1948.
16.12. KEY WORDS
1. Approval
2. Factory
3. Overtime
4. Licensing
5. Worker
6. Safety Officer
1
LESSON - 18
Where death results from the injury an amount equal to fifty per cent of monthly
wages of the deceased workman multiplied by
the relevant factor;
or
an amount of eighty thousand rupees,
whichever is more;
Where permanent total disablement an amount of sixty per cent of the monthly
results from the injury wages of the injured workman multiplied by
the relevant factor,
or
an amount of ninety thousand rupees,
whichever is more
2. The half-monthly payment referred to in clause (d) of sub-section (1) 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; and thereafter half-monthly during the disablement or during a
period of five years, whichever period is shorter:
Provided that-
a) There shall be deducted from any lump sum or half-monthly payments to
which the workman is entitled the amount of any payment or allowance
which the workman has received from the employer by way of compensation
during the period of disablement prior to the receipt of such lump sum or of
the first half-monthly payment, as the case may be; and
b) No half-monthly payments shall in any case exceed the amount, if any, by
which half the amount of the monthly wages of the workman before the
accident exceeds half the amount of such wages which he is earning the
accident.
3. On the ceasing of disablement before the date of which any half-monthly
payment falls due, there shall be payable in respect of that half-month a sum
proportionate to the duration of the disablement in that half-month.
4. If the injury of the workman results in his death, the employer shall, in addition
to the compensation under sub-section (1), deposit with the Commissioner a
sum of two thousand and five hundred rupees for payment of the same to the
1
eldest surviving dependant of the workman towards the expenditure of the
funeral of such workman or where the workman did not have a dependant or
was not living with his dependant at the time of his death to the person who
actually incurred such expenditure.
Method of calculating wages
In this Act and for the purposes thereof the expression “monthly wages” means
the amount of wages deemed to be payable for a month’s service (whether the
wages are payable by the month or by whatever other period or at piece rates) and
calculated as follows, namely:-
a) Where the workman has, during a continuous period of not less than twelve
months immediately proceeding the accident, been in the service of the
employer who is liable to pay compensation, the monthly wages of the
workman shall be one-twelfth of the total wages which have fallen due for
payment him by the employer in the last twelve months of that period;
b) Where the whole of the continuous period of service immediately preceding
the accident during which the workman was in the service of the employer
who is liable to pay the compensation was less than one month, the monthly
wages of the workman shall be the average monthly amount which, during the
twelve months immediately preceding the accident, was being earned by a
workman employed on the same work the same employer, or, if there was no
workman so employed, by a workman employed on similar work in the same
locality;
c) in other cases including cases in which it is not possible for want of necessary
information to calculate the monthly wages under clause (b), the monthly
wages shall be thirty times the total wages earned in respect of the last
continuous period of service immediately proceeding the accident from the
employer who is liable to pay compensation, divided by the number of days
comprising such period.
Review
1. Any half-monthly payment payable under this Act, either under an agreement
between the parties or under the order of a Commissioner, may be reviewed
by the Commissioner, on the application either of the employer or of the
workman accompanied by the certificate of a qualified medical practitioner
that there has been a change in the condition of the workman or, subject to
rules made under this Act, on application made without such certificate.
2. Any half-monthly payment pay, on review under this section, subject to the
provisions of this Act, be continued, increased, decreased or ended, or, 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
Any right to receive half-monthly payments may, by agreement between the
parties or, if the parties or, if the parties cannot agree and the payments have been
continued for not than six months, on the application of either party to the
1
Commissioner, be redeemed by the payment of a lump sum of such amount as may
be agreed to by the parties or determined by the Commissioner, as the case may be.
Distribution of compensation
1. No payment of compensation in respect of a workman whose injury has
results in death, and no payment of a lump sum a compensation to a woman
or a person under a legal disability, shall be made otherwise than by deposit
with the Commissioner, and no such payment made directly by an employer
shall be deemed to be a payment of compensation:
Provided that, in the case of a deceased workman, an employer may make to
any dependant advances on account of compensation of an amount equal to
three months wages of such workman and so much of such amount as does
not exceed the compensation payable to that dependant shall be deducted by
the Commissioner from such compensation and repaid to the employer.
2. Any other sum accounting to no t less than ten rupees which is payable as
compensation may be deposited with the Commissioner on behalf of the
person entitled thereto.
3. The receipt of the Commissioner shall be a sufficient discharge in respect of
any compensation deposited with him.
4. On the deposit of any money under sub-section (1), as compensation in
respect of a deceased workman the Commissioner shall, if he thinks
necessary, cause notice to be published or to be served on each dependant in
such manner as he thinks fit, calling upon the dependants to appear before
him on such date as he may fix for determining the distribution of the
compensation. If the Commissioner is satisfied after any inquiry which he may
deem necessary, that no dependant exists, he shall repay the balance of the
money to the employer by whom it was paid. The Commissioner shall, on
application by the employer, furnish a statement showing in detail all
disbursements made.
5. Compensation deposited in respect of a deceased workman shall, subject to
any deduction made under sub-section (4), be apportioned among the
dependants of the deceased workman or any of them in such proportion as
the Commissioner thinks fit, or may, in the discretion of the Commissioner, be
allotted to any one dependant.
6. Where any compensation deposited with the Commissioner is payable to any
person, the Commissioner shall, if the person to whom the compensation is
payable is not a woman or a person under a legal disability, and may, in
others cases, pay the money to the person entitled thereto.
7. Where any lump sum deposited with the Commissioner is payable to a woman
or a person under a legal disability, such sum may be invested, applied or
otherwise dealt with for the benefit of the woman, or of such person during his
disability, in such manner as the Commissioner may direct; and where a half-
monthly payment is payable to any person under a legal disability, the
Commissioner may, of this own motion or on an application made to him this
behalf, order that the payment be made during the disability to any dependant
1
of the workman or to any other person, whom the Commissioner thinks best
fitted to provide for the welfare of the workman.
8. Where, on application made to him in this behalf or otherwise, the
Commissioner is satisfied that, on account of neglect of children on the part of
a parent or an account of the variation of the circumstances of any dependant
or for any other sufficient cause, an order of the Commissioner as to the
distribution of any sum paid as compensation or as to the manner in which
any sum payable to any such dependant is to be invested, applied or
otherwise dealt with, ought to be varied, the Commissioner may make such
orders for the variation of the former order as the thinks just in the
circumstances of the case:
Provided that no such order prejudicial to any person shall be made unless
such person has been given an opportunity of showing cause why the order should
not be made, or shall be made in any case in which it would involve the repayment
by a dependant of any sum already paid to him.
Compensation not to be assigned, attached or charged
Save as provided by this Act, no lump sum or half-monthly payment payable
under this Act shall in any way be capable of being assigned or charged or be liable
to attachment or pass to any person other than the workman by operation of law,
nor shall any claim be set off against the same.
Notice and claim
1. No claim for compensation shall be entertained by a Commissioner unless
notice of the accident has been given in the manner hereinafter provided as
soon as practicable after the happening thereof and unless the claim is
preferred before him within two years of the occurrence of the accident or, in
case death, within two years from date of death:
Provided that, where the accident is the contracting of disease in respect of
which the provisions of sub-section (2) of section 3 are applicable, the accident
shall be deemed to have occurred on the first of the days during which the
workman was continuously absent from work in consequence of the
disablement caused by the disease:
Provided further that if a workman who, having been employed in an
employment for a continuous period, specified under sub-section (2) of section
3 in respect of that employment, ceases to be so employed and develops
symptoms of an occupational disease peculiar to that employment within two
years of the cessation of employment, the accident shall be deemed to have
occurred on the day on which the symptoms were first detected:
2. Every such notice shall give the name and address of the person injured and
shall state in ordinary language the cause of the injury and the date on which
the accident happened, and shall be served on the employer or upon any one
of several employers, or upon any person responsible to the employer for the
management of any branch of the trade or business in which the injured
workman was employed.
1
3. The State Government may require that any prescribed class of employers
shall maintain at their premises at which workmen are employed a notice
book, in the prescribed form, which shall be readily accessible at all
reasonable times to any injured workman employed on the premises and to
any person acting bona fide on his behalf.
4. A notice under this section may be served by delivering it at, or sending it by
registered post addressed to, the residence or any office or place of business of
the person on whom it is to be served, or, where a notice book is maintained,
by entry in the notice book.
Medical examination
1. Where a workman 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 effected, offers to have him examined free of charge by a qualified
medical practitioner, submit himself for such examination, and any workman
who is in receipt of a half-monthly payment under this Act shall, if so
required, submit himself for such examination from time to time:
2. Provided that a workman shall not be required to submit himself for
examination by a medical practitioner otherwise than in accordance with rules
made under this Act, or at more frequent intervals than may be prescribed.
3. If a workman, on being required to do so by the employer under sub-section
(1) or by the Commissioner at any time, refuses to submit himself for
examination by a qualified medical practitioner or in any way obstructs the
same, his right to compensation shall be suspended during the continuance of
such refusal or obstruction unless, in the case of refusal, he was prevented by
any sufficient cause from so submitting himself.
4. If a workman, before the expiry of the period within which he is liable under
sub-section (1) to be required 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.
5. here a workman, whose right to compensation has been suspended under sub-
section (2) or sub-section (3) dies without having submitted himself for
medical examination as required by either of those sub-sections, the
Commissioner may, if he thinks fit, direct the payment of compensation to the
dependants of the deceased workman.
6. Where under sub-section (2) or sub-section (3) right to compensation is
suspended, no compensation shall be payable in respect of the period of
suspension, and, if the period of suspension commences before the expiry of
the waiting period referred to in clause (d) of sub-section (1) of section 4, the
waiting period shall be increased by the period during which the suspension
continues.
7. Where an injured workman has refused to be attended by a qualified medical
practitioner whose services have been offered to him by the employer free of
charge or having accepted such offer had deliberately disregarded the
1
instructions of such medical practitioner, then, if its proved that the workman
has not thereafter been regularly attended by a qualified medical practitioner
or having been so attended has deliberately failed to follow his instructions
and that such refusal, disregard or failure was unreasonable in the
circumstances of the case and that the injury has been aggravated thereby,
the injury and resulting disablement shall be deemed to be of the same nature
and duration as they might reasonably have been expected to be if the
workman had been regularly attended by a qualified medical practitioner,
whose instructions he had followed, and compensation, if any, shall be
payable accordingly.
Contracting
1. Where any person (hereinafter in this section referred to as the principal) in
the course of or for the purposes of his trade or business contracts with any
other person (hereinafter in this section referred to as the contractor) for the
execution by or under the contractor of the whole or any part of work which is
ordinarily part of the trade or business of the principal, of the principal shall
be liable to pay to any workman employed in the execution of the work any
compensation which he would have been liable to pay if that workman had
been immediately employed by him; and where compensation is claimed from
the principal, this Act shall apply as if references to the principal were
substituted for references to the employer except that the amount of
compensation shall be calculated with reference to the wages of the workman
under the employer by whom he is immediately employed.
2. Where the principal is liable to pay compensation under this section, he shall
be entitled to be indemnified by the contractor, or any other person from
whom the workman could have recovered compensation and where a
contractor who is himself a principal is liable to pay compensation or to
indemnify a principal under this section he shall be entitled to be indemnified
by any person standing to him in the relation of a contractor from whom the
workman could have recovered compensation, and all questions as to the right
to and the amount of any such indemnity shall, in default of agreement, be
settled by the Commissioner.
3. Nothing in this section shall be construed as preventing a workman from
recovering compensation from the contractor instead of the principal.
4. This section shall not apply in any case where the accident occurred elsewhere
that on, in or about the premises on which the principal has undertaken or
usually undertakes, as the case may be, to execute the work or which are
otherwise under his control or management.
Remedies of employer against Stranger
Where a workman has recovered compensation is respect of any injury caused
under circumstances creating a legal liability in respect thereof, the person by
whom the compensation was paid to pay damages in respect thereof, the person by
whom the compensation was paid and any person who has been called on to pay
1
indemnity under section 12 shall be entitled to be indemnified by the person so
liable to pay damages as aforesaid.
Insolvency of employer
1. Where any employer has entered into a contract with any insurers in respect
of any liability under this Act to any workman, then in the event of the
employer becoming insolvent or making a composition or scheme of
arrangement with his creditors or, if the employer is a company, in the event
of the company having commenced to be wound up, the rights of the employer
against the insurers as respects that liability shall, notwithstanding anything
in any law for the time being in force relating to insolvency or the winding up
of companies, be transferred to and vest in the workman, and upon any such
transfer the insurers shall have the same rights and remedies and be subject
to the same liabilities as if they were the employer, so, however, that the
insurers shall not be under any greater liability to the workman than they
would have been under to the employer.
2. If the liability of the insurers to the workman is less than the liability of the
employer to the workman, the workman may prove for the balance in the
insolvency proceedings or liquidation.
3. Where in any case such as is referred to in sub-section (1) the contract of the
employer with insurers is void or voidable by reason of non-compliance on the
part of the employer with any terms or conditions of the contract (other than a
stipulation for the payment of premia), the provisions of that sub-section shall
apply as if the contract were not void or voidable, and the insurers shall be
entitled to prove in the insolvency proceedings or liquidation for the amount
paid to the workman.
4. Where the compensation is a half-monthly payment, the amount due in
respect thereof shall, for the purposes of this section, be taken to be the
amount of the lump sum for which the half-monthly payment could, if
redeemable, be redeemed if applications were made for that purpose under
section 7, and a certificate of the Commissioner as to the amount of such sum
shall be conclusive proof thereof.
5. The provisions of sub-section (4) shall apply in the case of any amount for
which an insurer is entitled to prove under sub-section (3), but otherwise
those provisions shall not apply where the insolvent or the company being
would up has entered into such a contract with insurers as is referred to in
sub-section (1).
6. This section shall not apply where a company is wound up voluntarily merely
for the purposes of reconstruction or of amalgamation with another company.
Returns as to compensation
The State Government may, by notification in the Official Gazette, direct that
every person employing workmen, or that any specified class of such persons, shall
send at such time and in such from and to such authority, as may be specified in
the notification, a correct return specifying the number of injuries in respect of
which compensation has been paid by the employer during the previous years and
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the amount of such compensation together with such other particulars as to the
compensation as the State Government may direct.
Contracting out
Any contract of agreement whether made before or after the commencement
of this Act, whereby a workman relinquishes any right of compensation from the
employer for personal injury arising out of or in the course of the employment, shall
be null and void insofar as it purports to remove or reduce the liability of any
person to pay compensation under this Act.
COMMISSIONERS
Reference to Commissioners
1. If any question arises in any proceedings under this Act as to the liability of
any person to pay compensation (including any question as to whether a
person injured is or is not a workman) or as to the amount or duration of
compensation (including any questions as to the nature or extent of
disablement), the question shall, in default of agreement, be settled by a
Commissioner.
2. No Civil shall have jurisdiction to settle, decide or deal with any question
which is by or under this Act required to be settled, decided dealt with by a
Commissioner or the enforce any liability incurred under this Act.
Appointment of Commissioners
1. The State Government may, by notification in the Official Gazette, appoint any
person to be a Commissioner for Workmen’s Compensation for such area, as
may be specified in the notification.
2. Where more than one Commissioner has been appointed of any area, the State
Government may, by general or special order, regulate the distribution of
business between them.
3. Any Commissioner may, for the purpose of deciding any matter referred to
him for decision under this Act, choose one or more persons possessing
special knowledge of any matter relevant to the matter under inquiry to assist
him in holding the inquiry.
4. Every Commissioner shall be deemed to be a public servant within the
meaning of the Indian Penal Code (45 of 1860).
Venue of proceedings and transfer
1. Where any matter under this Act is to be done by or before a Commissioner,
the same shall, to the provisions of this Act and to any rules made hereunder,
be done by or before the Commissioner for the area in which-
a) The accident took place which resulted in the injury; or
b) The workman or in case of his death, the dependant claiming the
compensation ordinarily resides; or
c) The employer has his registered office:
2. If a Commissioner is satisfied that any matter arising out of any proceedings
pending before him can be more conveniently dealt with by any other
Commissioner, whether in the same State or not, he may, subject to rules
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made under this Act, order such matter to be transferred to such other
Commissioner either for report or for disposal, and, if he does so, shall
forthwith transmit to such other Commissioner all documents relevant for the
decision of such matter and, where the matter is transferred for disposal, shall
also transmit in the prescribed manner any money remaining in his hands or
invested by him for the benefit of any party to the proceedings.
3. The Commissioner to whom any matter is so transferred shall, subject to rules
made under this Act, inquire there into and, if the matter was transferred for
report, return his report thereon or, if the matter was transferred for disposal,
continue the proceedings as if they had originally commenced before him.
4. On receipt of a report from a Commissioner to whom any matter has been
transferred for report under sub-section (2), the Commissioner by whom it
was referred shall decide the matter referred in conformity which such report.
5. The State Government may transfer any matter from any Commissioner
appointed by it to any other Commissioner appointed by it.
Form of application
1. Where an accident occurs in respect which liability to pay compensation
under this Act arises, a claim for such compensation may, subject to the
provisions of this Act, be made before the Commissioner.
2. An application to a Commissioner may be made in such form and shall be
accompanied by such fee, if any, as may be prescribed, and shall contain, in
addition to any particulars which may be prescribed, the following particulars,
namely:-]
a) A concise statement of the circumstances in which the application is made
and the relief or order which the applicant claims;
b) In the case of a claim for compensation against an employer, the date of
service of notice of the accident on the employer, and, if such notice has
not been served or has not been served in due time, the reason for such
omission;
c) The names and address of the parties; and
d) Except in the case of an application by dependants for compensation a
concise statement of the matters on which agreement has and of those on
which agreement has not been come to.
Appearance of parties
Any appearance, application or act required to be made or done by any person
before or to a Commissioner (other than an appearance of a party which is required
for the purpose of his examination as a witness) may be made or done on behalf of
such person by a legal practitioner or by an official of an Insurance Company or a
registered Trade Union or by an Inspector appointed under sub-section (1) of
section 8 of the Factories Act, 1948 (63 of 1948), or under sub-section (1) of section
5 of the Mines Act, 1952 (35 of 1952), or bay any other officer specified by the State
Government in this behalf, authroised in writing by such person, or, with the
permission of the Commissioner, by any other person so authorized.
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Method or recording evidence
The Commissioner shall make a brief memorandum of the substance of the
evidence of every witness as the examination of the witness proceeds, and such
memorandum shall be written and signed by the Commissioner with his own hand
and shall form part of the record:
Provided that, if the Commissioner is prevented from making such
memorandum, he shall record the reason of his inability to do so and shall cause
memorandum to be made in writing from his dictation and shall sign the same, and
such memorandum shall form part of the record:
Provided further that the evidence of any medical witness shall be taken down
as nearly as may be word for word.
Costs
All costs, incidental to any proceedings before a Commissioner, shall, subject
to rules made under this Act, be in the discretion of the Commissioner.
Power to submit cases
A Commissioner may, if he thinks fit, submit any question of law for the
question of law for the decision of the High Court and, if he does so, shall decide
the question in conformity with such decision.
Registration of agreements
1) Where the amount of any lump sum payable as compensation has been settled
by agreement, whether by way of redemption of half-monthly payment or
otherwise, or where any compensation has been so settled as being payable to a
woman, or a person under a legal disability [***] a memorandum thereof shall be
sent by the employer to the Commissioner, who shall, on being satisfied as to its
genuineness, record the memorandum in a register in the prescribed manner:
Effect of failure to register agreement
Where a memorandum of any agreement the registration of which is required
by section 28, is not sent to the Commissioner as required by that section, the
employer shall be liable to pay the full amount of compensation which he is liable
to pay under the provisions of this Act, and not withstanding anything contained in
the proviso to sub-section (1) of section 4, shall not, unless the Commissioner
otherwise directs, be entitled to deduct more than half of any amount paid to the
workmen by way of compensation whether under the agreement or otherwise.
Appeals
1. An appeal shall lie to the High Court form the following orders of a
Commissioner, namely:-
a) An order awarding as compensation a lump sum whether by way of
redemption of a half-monthly payment or otherwise or disallowing a
claim in full or in part for a lump sum;
An order awarding interest or penalty under section 4-A;
b) An order refusing to allow redemption of a half-monthly payment;
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c) An order providing for the distribution of compensation among the
dependants of a deceased workman, or disallowing any claim of a person
alleging himself to be such dependant;
d) An order allowing or disallowing any claim for the amount of an indemnity
under the provisions of sub-section (2) of section 12
RULES
Power of the State Government to make rules
1. The State Government may rules to carry out the purposes of this Act.
2. In particular and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-
a) For prescribing the intervals at which and the conditions subject to which an
application for review may be made under section 6 when not accompanied by
a medical certificate;
b) For prescribing the intervals at which and the conditions subject to which a
workman may required to submit himself for medical examination under sub-
section (1) of section 11;
c) For prescribing the procedure to be followed by Commissioners in the
disposal of cases under this Act and by the parties in such cases;
d) For regulating the transfer of matters and cases from one Commissioner to
another and the transfer of money in such cases;
e) For prescribing the manner in which money in the hands of a Commissioner
may be invested for the benefit of dependants of a deceased workman and for
the transfer of money so invested from one Commissioner to another;
f) For the representation in proceedings before Commissioners of parties who are
minors or are unable to make an appearance;
g) For prescribing the form and manner in which memoranda of agreements
shall be presented and registered;
h) For the withholding by Commissioners, whether in whose or in part of half-
monthly payments pending decision on applications for review of the same; [*]
i) For regulating the scales of costs which may be allowed in proceedings under
this Act;
j) For prescribing and determining the amount of the fees payable in respect of
any proceedings before a Commissioner under this Act;
k) For the maintenance by Commissioners of registers and records of
proceedings before them;
l) For prescribing the classes of employers who shall maintain notice-books
under sub-section (3) of section 10, and the form of such notice-books;
m) For Prescribing the form of statement to be submitted by employers under
section 10-A;
n) For prescribing the cases in which the report referred in section 10-B may be
sent to an authority other than the Commissioner;
o) for prescribing abstracts of this Act and requiring the employers to display
notices containing such abstracts;
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p) For prescribing the manner in which diseases specified as occupational
disease may be diagnosed;
q) For prescribing the manner in which diseases may be certified for any of the
purposes of this Act;
r) For prescribing the manner in which, and the standards by which, incapacity
may be assessed.
Publication of rules
1. The power to make rules conferred by section 32 shall be subject to the
condition of the rules being made after previous publication.
2. The date to be specified in accordance with clause (3) of section 23 of the
General Clauses Act, 1879 (10 of 1897), as that after which a draft of rules
purposed to be made under section 32 will be taken into consideration, shall
not be less than three months from the date on which the draft of the
proposed rules was published for general information.
22.4 REVISION POINTS
1. This Act is administrated by State Govt. which appoints Commissioners for
this purpose under Sec 20 of the Act.
2. The amount of compensation to be paid to a workman depends on:
3. Nature of injury caused by accident, monthly wages of workman concerned
and relevant factor as specified in Schedule IV. This Act distinguishes between
three types injuries which are permanent partial disablement, permanent total
disablement and temporary disablement.
22.5 INTEXT QUESTIONS
1. What are the penalties on the employer under the workman’s compensation
Act.
2. State the Rules regarding the notice of accident and to proper manner.
22.6 SUMMARY
The Workmen’s Compensation Act, 1923 provides for payment of
compensation to workmen and their dependants in case of injury and accident
(including certain occupational disease) arising out of and in the course of
employment and resulting in disablement or death. The amount of compensation to
be paid depends on the nature of the injury and the average monthly wages and age
of workmen. The minimum and maximum rates of compensation payable for death
(in such cases it is paid to the dependents of workmen) and for disability have been
fixed and is subject to revision from time to time.
22.7 TERMINAL EXERCISES
1. Discuss the procedure for method of recording evidence by commissioner?
2. Discuss the distribution of compensation.
3. Elaborate on amount of compensation.
22.8 SUPPLEMENTARY MATERIALS
1. Hindustan Lever Vs Workman, AIR
2. Tata chemicals Ltd Vs. Kailas C.Adaryer AIR
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3. Andhra Scientific Co. Employees Union Vs Manager.
22.9 ASSIGNMENTS
1. Discuss the liability of principal employer in respect of injury sustained by a
workman employed through a contractor.
2. Discuss the defences available to an employer against a claim for compensation.
3. Made by a workman under workmen’s compensation Act.
22.10 SUGGESTED READINGS / REFERENCE BOOKS
1. A.M.Sharma “Aspects of Labour welfare and social security”.
2. R.C.Seana “Labour problems and social welfare”.
3. Personnel Management and Industrial Relations; P.C.Tripathi.
11. LEARNING ACTIVITIES
1. State the Rules regarding Notice of accident and its proper manner.
2. Discuss the provisions for relating to commutation of half monthly payment.
12. KEY WORDS
1. Appeals
2. Commissioner
3. Disablement
4. Penalty
5. Contracting
6. Compensation
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LESSON – 23
Provident Fund 12% Amount > 8.33% (in case where Nil
Scheme contribution is 12% or 10%)
10% (in case of certain
establishment as per details
given earlier)
Powers of Inspectors
1. Subject to any rules made by the appropriate Government in this behalf, an
Inspector may, for the purpose of ascertaining whether any of the provisions of
this Act or the conditions, if any, of any exemption granted there under, have
been complied with, exercise all or any of the following powers, namely:
a) Require an employer to furnish such information as he may consider
necessary;
b) Enter and inspect, at all reasonable hours, with such assistant (if any), being
persons in the service of the Government or local or any public authority, as
he thinks fit, any premises of or place in any factory mine, oilfield, plantation,
port, railway company, shop or other establishment to which this Act, applies,
for the
2
purpose of examining any register, record or notice or other document required
to be kept or exhibited under this Act or the rules made there under, or
otherwise kept exhibited in relation to the employment of any person or the
payment of gratuity to the employees, and require the production thereof for
inspection;
c) Examine with respect to any matter relevant to any of the purposes
aforesaid, the employer or any person whom he finds in such premises or
place and who, he has reasonable cause to believe, is an employee employed
therein;
d) Make copies of, or take extracts from, any register, record, notice or other
document, as he may consider relevant, and where he has reason to believe
that any offence under this Act has been committed by an employer, search
and seize with such assistance as he may think fit, such register, record,
notice or other document as he may consider relevant in respect of that
offence;
e) Exercise such other powers as may be prescribed.
2. Any person required to produce any register, record, notice or other document or
to give any information by an Inspector under sub-section (1) shall be deemed to
be legally bound to do so within the meaning of sections 175 and 176 of the Indian
Penal code (45 of 1860).
3. The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall so far as
may be, apply to any search or seizure under this section as they apply to any
search or seizure made under the authority of a warrant issued under section 94 of
that Code.
Recovery of gratuity
If the amount of gratuity payable under this Act is not paid by the employer,
within the prescribed time, to the person entitled thereto, 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 thereon at such rate as the Central Government may, by
notification, specify, from the date of expiry of the prescribed time, as arrears of land
revenue and pay the same to the person entitled thereto:
Provided 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:
Provided further that the amount interest payable under this section shall, in
no case exceed the amount of gratuity payable under this Act.
Penalties
1. Whoever, for the purpose of avoiding any payment to be made by himself under
this Act or of enabling any other person to avoid such payment, knowingly
makes or causes to be made any false statement or false representation, shall be
punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to ten thousand rupees or with both.
2
2. An employer who contravenes, or makes default in complying with, array of the
provisions of this Act or any rule or order made there under shall be punishable
with imprisonment for a term which shall not be less than three months but
which may extend to one year, or with fine which shall not be less than ten
thousand rupees but which may extend to twenty thousand rupees, or with
both:
Provided that where the offence relates to non-payment of any gratuity payable
under this Act, the employer shall be punishable with imprisonment a term
which shall not be less than six months but which may extend to two years
unless Court trying the offence, for reasons to be recorded by it in writing, is of
opinion that lesser term of imprisonment or the imposition of a fine would meet
the ends of justice.
Exemption of employer from liability in certain cases
Where an employer is charged with an offence punishable under this Act, he
shall be entitled, upon complaint duly made by him and on giving to the
complainant duly made by him and on giving to the complaint not less than
three clear days’ notice in writing of his intention to dos o, to have any other
person whom he charges as the actual offender brought before the Court at the
time appointed for hearing the charge; and if, after the commission of the offence
has been proved, the employer p[roves to the satisfaction of the Court,
a) That he has used due diligence to enforce the execution of this Act, and
b) That the said other person committed the offence in question without his
knowledge, consent or connivance, that other person shall be convicted of the
offence and shall be liable to the like punishment as if he were the employer and
the employer shall be discharged from and liability under this Act in respect of
such offence:
Provided that in seeking to prove as aforesaid, the employer may be examined on
oath and his evidence and that of any witness whom he calls in his support shall
be subject to cross-examination on behalf of the person he charges as the actual
offender and by the prosecutor:
Provided further that, if the person charged as the actual offender by the employer
cannot be brought before the Court at the time appointed for hearing the charge, the
Court shall adjourn the hearing from time to time for a period not exceeding three
months and if by the end of the said period the person charged as the actual
offender cannot still be brought before the Court, the Court shall proceed to hear the
charge against the employer and shall, if the offence be proved, convict the
employer.
Cognizance of offences
1. No Court shall take cognizance of any offence punishable under this Act save on
a complaint made by or under the authority of the appropriate Government:
Provided that 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, whereupon the controlling authority shall, within fifteen
days from the date of such authorization, make such complaint to a Magistrate
having jurisdiction to try the offence.
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2. 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.
Protection of action taken in good faith
No suit or other legal proceeding shall lie against the controlling authority or
any other person in respect of anything which is in good faith done or intended to
be done under this Act or any rule order made there under.
Protection of gratuity
No gratuity payable under this Act and no gratuity payable to an employee
employed in any establishment, factory, mine, oilfield, plantation, port, railway
company or shop exempted under section 5 shall be liable to attachment in
execution of any decree or order of any civil, revenue or criminal Court.
Act to override other enactments, etc
The provisions of this Act or any rule made there under shall have effect
notwithstanding anything inconsistent therewith contained in any enactment other
than this Act or in any instrument or contract having effect by virtue of any
enactment other than this Act.
Power to make rules
1. The appropriate Government may, by notification, make rules for the purpose of
carrying out the provisions of this Act.
2. Every rule made by the Central Government under this act shall be laid, as soon as
may be after it is made, before each House of parliament while it is in session, for a
total period of thirty days which may be comprised in one session or in two or more
successive sessions, and it, before the expiry of the session immediately following
the session or the successive sessions aforesaid, both House agree in making any
modification in the rule or both House agree that the rule should not be made, the
rule shall, thereafter, have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.
Summary
The umbrella legislation relating to gratuity in the Payment of Gratuity Act,
1972. The Act was enacted to provide for a scheme for the payment of gratuity to
employees engaged in factories, mines, oilfields, plantation, ports, railway
companies, shops or other establishments employing ten or more persons and for
matters connected therewith or incidental thereto. The appropriate Government
may, by notification, and subject to such conditions as may be specified in the
notification, exempt any establishment to which this Act applies or any employee or
class of employees employed therein, from the operation of the provisions of this
Act, if in the opinion of the appropriate Government, the employees in such
establishment are in receipt of gratuity or pensioner benefits not less favourable
than the benefits conferred under this Act.
The Act is administered by the Central Government in:- (i) establishments
which are under its control; (ii) establishments having branches in more than one
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State; and (iii) major ports, mines, oil fields and the railways. The appropriate
Government may, by notification, 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.
The Employees State Insurance Act 1948
Statement of objects and reasons
1. The introduction of a scheme of Health Insurance for industrial workers has been
under the consideration of the Government of India for a long time. The
necessity for such a scheme has become more urgent in view of the conditions
brought about by war. The scheme envisaged as one of compulsory State
Insurance providing for certain benefits in the event of sickness, maternity and
employment injury to workmen employed in or in connection with the work in
factories other than seasonal factories.
2. A scheme of this nature has to be planned on all-India basis and administered
uniformly throughout the country. With this object, the administration of the
scheme is proposed to be entrusted to a Corporation constituted by central
legislation.
3. The functions of the Corporation will be performed by a Central Board constituted
of representatives of Central and Provincial Governments, and of employers,
workers and the medical profession. The board will also include certain members
elected the Central Legislative Assembly. A standing Committee of the board will
act as the Executive of the board, and Medical Benefit council will also be set up to
advise on matters relating to the administration of Medical benefit.
4. The insurance fund will be mainly derived from contributions from employers
and workmen. The contributions payable in respect of each workers will be based
on his average wages and will be based on his average wages and will be
payable in the first instance by the employer. The employer will be entitled to
recover the workman’s share from the wages of the workmen concerned.
Workmen whose earnings do not exceed 10 annas a day will be totally exempt
from payment of any share of the contribution on account of such workmen
being met by the employer. Provision has been made for the preparation of
proper budgets and the audit of accounts.
5. The insured workmen will be entitled to the following benefits:
a) Sickness Cash Benefit A workman, if certified sick and incapable of
working, will receive for a period of not exceeding 8 weeks in any
continuous 12 monthly period, a cash allowance equal approximately to
half average daily wages during the previous six months. He will also
entitled to receive medical care and treatment at such hospitals,
dispensaries or other institutions to which the factory in which he is
employed may be allotted.
b) Maternity Benefit Women workers will be entitled to receive a maternity
benefit at 12 annas a day for 12 weeks. They will also be entitled to medical
aid at the aforesaid medical institutions.
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c) Disablement and Dependent’s Benefit A workman disabled by
employment injury will receive for the period of disablement or life
depending on whether the disablement is temporary or full and permanent
as the case may be, subject to a maximum and minimum. Where
disablement is partial, the pension will be proportionately reduced. In case
of death resulting from employment injury, the pension will be payable to
the widow and legitimate children, to other dependants of the deceased
workman. The workman will also be entitled to medical care and treatment.
6. Medical care and treatment to insured workman will be provided by Provincial
Government at such hospitals, dispensaries and other institutions as may be
prescribed for the purpose. The cost of the medical benefit will be shared between
the Provincial Government and the Corporation in such proportions as may be
agreed upon between them. In case the average incidence of sickness cash
benefit in any Province is in excess of the all-India average, Provincial
Government will also bear such share of the cost of the excess incidence as
may be agreed upon between it and the Corporation.
7. Workmen’s State Insurance Courts will be set up to decide disputes and
adjudicate on claims. The cost of the tribunal will be paid by the insurance fund.
PRELIMINARY
Short title, extent, commencement and application
1. This Act may be called THE EMPLOYEES’ STATE INSURANCE ACT, 1948.
2. It extends to the whole of India.
3. It shall come into force on such date or dates as the Central Government may,
by notification in the Official Gazette, appoint, and different dates may be
appointed for different provisions of this Act and for different States or for
different parts thereof.
4. It shall apply, in the first instance, to all factories (including factories
belonging to the Government) other than seasonal factories:
Definitions
In this Act, unless there is anything repugnant in the subject or context,
1. “Appropriate Government” means, in respect of establishments under the control
of the Central Government or a railway administration or a major port or a mine
or oil-field, the Central Government, and in all other cases, the State Government;
2. “Confinement” means labour resulting in the issue of a living child, or labour after
twenty-six weeks of pregnancy resulting in the issue of a child whether alive or
dead;
3. “Contribution” means the sum of money payable to the Corporation by the
principal employer in respect of an employee and includes any amount payable by
or on behalf of the employee in accordance with the provisions of this Act;
4. “Corporation” means the Employees’ State Insurance Corporation set up under
this Act;
a. “Dependant” means any of the following relatives of a deceased insured
person, namely:-
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i. a widow, a minor legitimate or adopted son, an unmarried legitimate or
adopted daughter;
a widowed mother;
ii. if wholly dependent on the earnings of the insured person at the time of
his death, a legitimate or adopted son or daughter who has attained the
age of eighteen years and is infirm;
iii. if wholly or in part dependant on earnings of the insured person at the
time of his death,-
a) a parent other than a widowed mother,
b) 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,
c) a minor brother or an unmarried sister or a widowed sister if a minor,
d) a daughter-in-law,
e) a minor child of a pre-deceased son,
f) a minor child of a pre-deceased daughter where no parent of the child is
alive, or
g) a paternal grand-parent if no parent of the insured person is alive;
5. “Duly appointed” means appointed in accordance with the provisions of this Act or
with the rules or regulations made there under;
6. “Employment injury” means a personal injury to an employee caused by accident
or an occupational disease arising out of and in the course of this employment,
being an insurable employment, whether the accident occurs or the occupational
disease is contracted within or outside the territorial limits of India;
7. “Employee” means any person employed for wages in or in connection with the
work of a factory or establishment to which this Act applies and,
i) Who is directly employed by the principal employer on any work of, or
incidental or preliminary to or connected with work of, the factory or
establishment, whether such work is done by the employee in the factory
or establishment or elsewhere; or
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 on work which is ordinarily part of the work of the
factory or establishment or which is preliminary to the work carried on in
or incidental to the purpose of the factory or establishment; or
iii) Whose services are temporarily lent or let on hire to the principal employer
by the person with whom the person whose services are so lent or let on
hire has entered into a contract of service;
8. “Exempted employee” means an employee who is not liable under this Act to
pay the employee’s contribution;
9. “Family” means all or any of the following relatives of an insured person, namely:
i) a spouse;
ii) a minor legitimate or adopted child dependent upon the insured person;
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iii) a child who is wholly dependent on the earnings of the insured person and
who is
a) receiving education, till he or she attains the age of twenty-one years,
b) an unmarried daughter;
iv) a child who is infirm by reason of any physical or mental abnormality or
injury and is wholly dependent on the earnings of the insured person, so
long as the infirmity continues;
v) dependent parents;
10. “Factory” means any premises including the precincts thereof,
a) whereon ten or more persons are employed or were employed for wages
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 or is
ordinarily so carried on, or
b) whereon twenty or more persons are employed or were employed for wages
on any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power or is
ordinarily so carried on, but does not include a mine subject to the
operation of the Mines Act, 1952 (35 of 1952) or a railway running shed;
11. “Immediate employer”, in relation to employee employed by or through him,
means a person who has undertaken the execution, on the premises of a
factory or an establishment to which this Act applies or under the supervision of
the principal employer or his agent, of the whole or any part of any work which is
ordinarily part of the work of the factory or establishment of the principal
employer or is preliminary to the work carried o in, or incidental to the
purpose of, any such factory or establishment, and includes a person by whom
the eservices of an employee who has entered into a contract of service with him
are temporarily lent or let on hire to the principal employer and includes a
contractor;
a) “insurable employment” means an employment in a factory or establishment to
which this Act applies;
12. “Insured person” means a person who is or was an employee in respect of whom
contributions are or were payable under this Act and who is, by reason thereof,
entitled to any of the benefits provided by this Act;
a) “managing agent” 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;
i) “manufacturing process” shall have the meaning assigned to it in the
Factories Act, 1948 (63 of 1948);
b) “miscarriage” means expulsion of the contents of a pregnant uterus at any
period prior to or during the twenty-sixth week of pregnancy but does not
include any miscarriage, the causing of which is punishable under the
Indian Penal Code (45 of 1860);
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13. “Occupier” of the factory shall have the meaning assigned to it in the Factories Act,
1948 (63 of 1948);
a) “permanent partial disablement” means such disablement of a permanent
nature, as reduces the earning capacity of an employee in every
employment which he was capable of undertaking at the time of the
accident resulting in the disablement;
b) “permanent total disablement” means such disablement of a permanent
nature as incapacitates an employee for all work which he was capable of
performing at the time of the accident resulting in such disablement:
Provided that permanent total disablement shall be deemed to result from every
injury specified in Part I of the Second Schedule on from any combination of
injuries specified in Part II thereof where the aggregate percentage of the loss of
earning capacity, as specified in the said Part II against those injuries, amounts
to one hundred per cent. or more;
c) “power” shall have the meaning assigned to it in the Factories Act, 1948 (63
of 1948);
14. “prescribed” means prescribed by rules made under this Act;
15. “principal employer” means-
i) in a factory, the owner or occupier of the factory and includes the managing
agent of such owner or occupier, the legal representative of a deceased owner
or occupier, and where a person has been named as the manager of the
factory under the Factories Act, 1948 (63 of 1948), the person so named;
ii) in any establishment under the control of any department of
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ANNAMALAI UNIVERSITY PRESS : 2017 – 2018
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