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-LABOUR AND INDUSTRIAL LAW-I

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Part A

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1. What is Social Security? Explain the mutual relation between Social Justice and Social
Security.

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2. Discuss how ILO is related to social security.

3. Discuss the emergence of social security in India and examine the effects of Social Security
measures.

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4. Explain notional extension of time and place of employment.

5. What is the importance of Employees State Insurance Scheme? Discuss.


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6. Explain the meaning and eligibility of gatuity.

Part B

7. A cashier while travelling in a train with a large sum of money for payment to his employer's
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workmen was robbed and murdered. The question for consideration was whether it amounted to
an industrial accident so that his legal representatives may claim compensation. Decide.
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8. A workman employed by a celliery was in a railway accident while travelling in a special


celliery train from his work spot to his dwelling place. It was not obligatory for the workman to
use the conveyance provided by the railway company for his to and fro journey from the place of
work to his residence. The workman who go injured in such a journey claimed compensation on
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the ground that his employment began when he got into the train and ceased when the left it.
Examine and discuss whether the workman is entitled to claim compensation.
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9. The question for decision is whether a shareholder employed in a registered co-operative


society is an employee and the ESI Act is applicablo in his case. Example and discuss.

10. The accused, a manager of a factory had put covers on the screw conveyers and thus they
were secured. A workman removed one of the covers while the machine was moving. This
resulted in an injury to the workman. The accident took place because of the workman's utter
disregard of a notice displayed in the premises of the factory that no one should touch the
moving machine or safety guards. The accused manager was convicted for the injury caused to
the workman by the machinery. The question was whether the order of conviction and sentence
passed against the accused was legal and justified Decide.

Part C

11. Discuss the social security measures against employment injuries and compensation to
workmen. Examine the nature and extent of the employer's liability referring to the relevant
provisions of the pertinent legislative enactments in this regard.

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12. Discuss the measures provided for industrial hygiene, industrial health and safeguards
against industrial accidents in the light of the relevant provisions of the legislations relating to

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them.

13. Explain the concept of wages, and discuss the regulations for fixation of wages, deductions
and fines including fixation of minimum wages and the revision. Write short critical notes on
maternity benefits, employees provident fund and pension schemes.

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Part A

1. The concept of 'social security.

2. General duties of an 'occupier' under the Factories Act 1948.


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3.International Labour Organization.


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4, Procedure for fixing and revising minimum wages.

5. Occupational diseases.
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6. Continuous service' for calculation of gratuity.

Part B
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7. A driver of bus belonging to the employer was involved in an accident which resulted in the
impairment of free movement of his left hand disabling him from driving vehicles. He is,
however, capable of performing other works. He claims compensation contending that the said
accident had resulted in permanent disablement of driving vehicles. Will he succeed? Decide.

8. An employee who was on his way to factory was attacked by some rioters, just five hundred
meters sway from the factory premises, and died as a result of injuries sustained. Decide
whether the deceased employee's wife is entitled to get the benefits under the Employees' State
Insurance Act.

9. Mr. 'X', an employee of ABC Ltd. had his services terminated for negligence leading to losses
to the Company. Is he eligible for payment of any gratuity under the Payment of Gratuity Act,
1972? Decide giving reasons.

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10. An employee increased his share of provident fund contribution. Is the employer also liable

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to proportionately increase his share of contribution under the relevant statutory provisions?

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Part C

11. Discuss the qualifications, powers and functions of the Commissioner under the Employees'
Compensation Act.

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12. Define the term 'factory'. Explain the provisions relating to 'safety' of workers under the
Factories Act, 1948.

13. Explain the salient features of the Maternity Benefit Act, 1961. What are the key
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amendments introduced by the Maternity benefits (Amendment) Act, 2017?

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Part A
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1. The concept of wages under the Minimum Wages Act, 1948.


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2, Asiad Workers све.

3. The rules for determination and distribution of bonus.


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4. The term factory' under the Factories Act, 1948.


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5. Fixation of wage periods.

6. ESI Court.

Part B

7. By a Governmental Notification, the State of Kerala in exorcise of power conferred under the
Minimum Wages Act, fixed the minimum rate of wages in respect of the different categories of
employees serving in private schools. The Said notification was challenged by a private school
management on ground that teachers are not workmen wishin purview of Act. Discuss the
validity of the notification with the help of a decided case.

8. The gratuity of a workman was not paid by his employer on the ground that be assaulted
supervisor inside the factory. His entire gratuity was forfeited. Can the workman recover his
gratuity amount? Advice.

9. A workman went outside the factory during his employment time for his personal purpose and
he met with an accident outside the premises. Can the workman claim compensation under the

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Employees' Compensation Act, 1923?

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10. X employed in pumping of oil, washing and servicing of vehicles by a petrol pump. Does the
activity amount to manufacturing process under the Factories Act?

Part C

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11. "In fixing the minimum wage, the minimum wage must ensure not only the sustenance of the
employee and his family but also preserve his efficiency as a worker and that is what is
contemplated by the Act-Discuss.
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12. What are the underlying ideas behind social security measures in India and why do we need
social security for employees?

13. Explain the meaning of 'authorized deduction from wages' under Payment of Wages Act,
1936. What are the conditions for deducting money from wages for 'damage or losses?
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Part A
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[Prior to 2016 Admissions Supplementary)

Write short notes on any five of the following. Each question carries 8 marks.
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1. Bar against double remedies.

2. The doctrine of Notional Extension.

3. Essential elements of a factory.

4. Hazardous processes.
5. Fixation and revision of minimum wages.

6. Law relating to shops and commercial establishments.

Part B

7. A company was running into losses and was unable to pay the minimum rates of wages to its
workers. The workers demanded that the employer must pay them the minimum rates of wages.
The company (employer) intends to approach the Court challenging the constitutional validity of

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the Minimum Wages Act, 1948. Advise the company.

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8. A seventeen-year-old boy was employed in a factory. He was asked by the supervisor to work
on dangerous machine, for a period of seven days and was offered double the amount of
wages. He consented to work. Is the action of the supervisor legal? Give reasons for your
answer.

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9. An employee was absent from duty without leave. The employer took the plea that it had
resulted in the breach of continuous service for the purposes of gratuity under the Payment of
Gratuity Act, 1972. Is the plea of the employer legal and tenable ?
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10. In an accounting year, a company to which the payment of Bonus Act, 1965 applies,
suffered heavy losses. The Board of Directors of the said company decided not to give bonus to
the employees. The employees of the company move to the Court for relief. Decide in the light
of the provisions of the said Act whether the employees will get relief.

Part C
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11. Discuss the nature of Employer's liability for compensation under the Employees'
Compensation.Act
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12. Explain the composition, powers and functions of E.S.I. Corporation.

13. Briefly describe the statutory provisions ensuring health and welfare of the workers in a
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factory.
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Part A

1. Explain the concept of social security and examine the impact of industrialization on social
security.
2. Discuss the objectives of the ILO and its influence on Indian Labour Legislations and the
social security aspects thereof.

3. Explain the concept of Notional extension of time and place of employment..

4. Discuss the Employees State Insurance Scheme as a social security measure, examining its
nature and scope.

5. What is Bonus ? Discuss the object and eligibility for bonus.

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6. Disenss the meaning and objectives of Gratuity and Employees Provident Fund Scheme.

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Part B

7. A shareholder of registered co-operative society who is working as an employee of the


co-operative society claims the benefit of the ESI Act. The ESI Corporation contends that he is

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not eligible for such benefits as he is a shareholder of the co-operative society. Decide.

8. The brothers and sisters of a workman who died in an accident arising out of and in the
course of employment claim Compensation under the workmens Compensation Act from the
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Management. as a dependant of the deceased because the deceased was unmarried at the
time of his death. Will they succeed ? Decide.

9. The accused manager of a factory had put covers the screw veyor and they were secured. A
workman removed one of the covers while the machine was moving. This resulted in injury to
the workunan's utter disregard to the notice displayed in the factory premises that no one should
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touch the moving machine or safety guards. When the accused manager was convicted the
question arose whether the conviction of the accused was legaly valid. Decide.
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10. An employee was retrenched from service. He claims gratuity on the ground that his
services were terminated. The management contends that gratuity is a retirement benefit
granted to an employee when he retires from service and not in any case when his service is
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terminated otherwise. Decide.

Part C
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11. "Social security constitutes an important step towards the goal of a welfare state, by
improving living and working conditions and affording people protection against various kinds of
hazards". Comment. Discuss the various social security legislations in India aimed at attaining
the goal of welfare state in India.

12. Diseuas the employment health and safety of workers relating to industrial hygiene,
industrial health, industrial accidents, safeguards approvals, health, safety and welfare
measures of workers and also legislative protection for children and young workers examining
the important aspects of the relevant legislations relating to it.

13. There are three concepts of wages, namely, Minimum Wage, Pair Wage and living Wage".
Explain. What are Maternity Benefits? Explain..

Part A

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1. What is Social Security? Explain the mutual relation between
Social Justice and Social Security.
Social security is a system of protection that society provides to individuals and

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households to ensure access to health care and to guarantee income security,
particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity
or loss of a breadwinner. Social justice is the principle of fair and equitable treatment of
all people in society, especially the disadvantaged and marginalized groups. The mutual
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relation between social justice and social security is that social security aims to promote
social justice by reducing poverty, inequality and vulnerability among the workers and
their families. Social security also contributes to social justice by enhancing human
dignity, social inclusion and participation.
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2. Discuss how ILO is related to social security.


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ILO is the International Labour Organization, a specialized agency of the United Nations
that deals with labour issues, including social security. ILO is related to social security in
several ways. First, ILO sets international standards on social security through its
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conventions and recommendations, which provide guidance to member states on how to


establish and improve their social security systems. Second, ILO provides technical
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assistance and policy advice to member states on various aspects of social security,
such as design, financing, administration, governance, coverage extension, benefit
adequacy and sustainability. Third, ILO conducts research and analysis on social
security issues and trends, and disseminates good practices and lessons learned from
different countries. Fourth, ILO promotes social dialogue and tripartism on social security
matters, involving governments, employers and workers' organizations in the formulation
and implementation of social security policies.
3. Discuss the emergence of social security in India and
examine the effects of Social Security measures.
The emergence of social security in India can be traced back to the pre-independence
period, when some legislations were enacted to provide limited protection to certain
categories of workers, such as the Workmen's Compensation Act 1923, the Maternity
Benefit Act 1939 and the Employees' State Insurance Act 1948. After independence,
the Constitution of India recognized the right to social security as a part of the directive
principles of state policy, and mandated the state to make effective provision for securing

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the right to work, education and public assistance in cases of unemployment, old age,
sickness and disablement. Since then, various laws have been enacted to provide social
security benefits to different sections of workers in both organized and unorganized

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sectors, such as the Employees' Provident Funds and Miscellaneous Provisions
Act 1952, the Payment of Gratuity Act 1972, the Unorganized Workers' Social
Security Act 2008 and the Code on Social Security 2020. The effects of social
security measures in India have been mixed. On one hand, they have contributed to

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improving the living standards, health status and income security of millions of workers
and their dependents. On the other hand, they have faced challenges such as low
coverage, inadequate benefits, fragmentation, complexity, inefficiency and fiscal
constraints.
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4. Explain notional extension of time and place of employment.
Notional extension of time and place of employment is a legal doctrine that extends the
scope of employment beyond the actual hours and premises of work for the purpose of
determining the liability of the employer for work-related injuries or diseases. The
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rationale behind this doctrine is that some activities or situations that are incidental or
ancillary to the employment may expose the worker to occupational hazards or risks that
are similar or related to those encountered during the normal course of work. For
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example, travelling to or from work, attending training or social events sponsored by the
employer, performing emergency duties or overtime work may be considered as notional
extensions of time and place of employment. The application of this doctrine depends on
the facts and circumstances of each case, such as the nature and purpose of the activity
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or situation, the degree of control or direction exercised by the employer, the benefit or
interest derived by the employer or worker etc.
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5. What is the importance of Employees State Insurance


Scheme? Discuss.
Employees State Insurance Scheme (ESIS) is a statutory social insurance scheme that
provides medical care and cash benefits to insured workers and their dependents in
case of sickness, maternity, employment injury or death. The importance of ESIS can be
discussed from three perspectives: workers', employers' and society's. From the
workers' perspective, ESIS is important because it protects them from loss of income
due to contingencies that affect their health or ability to work. It also ensures access to
quality health care services for themselves and their family members. It also enhances
their sense of security and well-being. From the employers' perspective, ESIS is
important because it reduces their financial liability and administrative burden for
providing health care and compensation to their workers. It also improves their
productivity and competitiveness by reducing absenteeism, turnover and labour
disputes. It also fosters a good industrial relations climate and social responsibility. From

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the society's perspective, ESIS is important because it contributes to the social and
economic development of the country by improving the health status and human capital

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of the workforce. It also reduces the burden on the public health system and the social
welfare system. It also promotes social justice and solidarity among different sections of
society.

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6. Explain the meaning and eligibility of gatuity.
Gratuity is a monetary benefit given by the employer to the employee at the time of
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retirement or termination of service. It is a form of gratitude for the long and loyal service
rendered by the employee. The eligibility of gratuity is governed by the Payment of
Gratuity Act, 1972, which applies to every factory, mine, oilfield, plantation, port, railway,
shop or other establishment where 10 or more persons are employed. According to
section 4 of the Act, an employee who has completed five years of continuous service
with the same employer is entitled to receive gratuity at the rate of 15 days' wages for
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every completed year of service or part thereof in excess of six months. The maximum
amount of gratuity payable under the Act is 20 lakhs. However, the employer may pay
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more than this amount if he wishes to do so. In case of death or disablement of an


employee due to accident or disease, the gratuity is payable even if he has not
completed five years of service. The Supreme Court in Jeevanlal (1929) Ltd. v.
Appellate Authority under Payment of Gratuity Act [(1984) 4 SCC 356] held that
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gratuity is not a bounty but a statutory right of an employee and it cannot be denied on
flimsy grounds.
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7. The concept of 'social security.


Social security is a concept that aims to provide protection and assistance to workers
and their dependents in case of contingencies such as sickness, maternity, old age,
disability, unemployment, death, etc. It is based on the principle of social justice and
human dignity. Social security in India is governed by various laws such as Employees'
State Insurance Act, 1948; Employees' Provident Funds and Miscellaneous
Provisions Act, 1952; Maternity Benefit Act, 1961; Payment of Gratuity Act, 1972;
Workmen's Compensation Act, 1923; Employees' Compensation Act, 1923;
Unorganized Workers' Social Security Act, 2008; etc. These laws provide for various
benefits such as medical care, cash benefits, maternity benefits, pension, gratuity,
compensation, etc. to the workers and their dependents in case of specified
contingencies. The Supreme Court in Bandhua Mukti Morcha v. Union of India
[(1984) 3 SCC 161] observed that social security is a fundamental right of every worker
under Article 21 of the Constitution and it is the duty of the State to ensure its effective
implementation.

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8. General duties of an 'occupier' under the Factories Act 1948.

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An occupier is a person who has ultimate control over the affairs of a factory. He may be
the owner, lessee, manager or any other person who has authority over the factory. The
general duties of an occupier under the Factories Act 1948 are as follows:

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- To ensure the health, safety and welfare of all workers in the factory [Section 7A].
- To provide and maintain plant and systems of work that are safe and without risks to
health [Section 7A(a)].
- To make arrangements for ensuring safety and absence of risks to health in connection
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with the use, handling, storage and transport of articles and substances [Section 7A(b)].
- To provide information, instruction, training and supervision that are necessary to
ensure the health and safety of all workers [Section 7A(c)].
- To maintain all places of work in the factory in a condition that is safe and without risks
to health [Section 7A(d)].
- To provide and maintain adequate welfare facilities such as drinking water, latrines,
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urinals, spittoons, washing facilities, first aid appliances, canteens, shelters, rest rooms,
creches etc. [Sections 18 to 20].
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- To comply with the provisions relating to working hours, overtime, weekly holidays,
annual leave with wages etc. [Sections 51 to 66].
- To comply with the provisions relating to hazardous processes and substances such as
asbestos dusts [Sections 41A to 41H].
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- To notify the authorities about any accident or dangerous occurrence or occupational


disease that takes place in the factory [Sections 88 to 91].
- To keep registers and records and display notices as required by the Act or rules
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[Sections 92 to 94].

The occupier is liable for any contravention or non-compliance with any provision of the
Act or rules and may be punished with imprisonment or fine or both [Sections 92 to 94].
9. International Labour Organization.
The International Labour Organization (ILO) is a specialized agency of the United
Nations that deals with labour issues. It was established in 1919 as a part of the Treaty
of Versailles that ended the First World War. The main objectives of the ILO are to
promote social justice and human rights, to set international labour standards, to provide
technical assistance and cooperation, and to foster social dialogue among governments,
employers and workers. The ILO has 187 member states and operates through three
main organs: the International Labour Conference, the Governing Body and the
International Labour Office. The International Labour Conference is the supreme

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policy-making body of the ILO that meets annually and adopts conventions and
recommendations on various labour matters. The Governing Body is the executive body

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of the ILO that meets three times a year and oversees the work of the Office. The
International Labour Office is the permanent secretariat of the ILO that is headed by a
Director-General and carries out research, studies, publications, technical assistance,
etc. The ILO has adopted more than 200 conventions and recommendations on various
subjects such as freedom of association, collective bargaining, forced labour, child

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labour, discrimination, minimum wages, social security, occupational safety and health,
etc. India is a founding member of the ILO and has ratified 47 conventions and one
protocol.
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10. Procedure for fixing and revising minimum wages.
The procedure for fixing and revising minimum wages is laid down in the Minimum
Wages Act, 1948. According to section 3 of the Act, the appropriate government (Central
or State) may fix or revise minimum rates of wages for any scheduled employment (i.e.
any employment specified in the schedule to the Act) by issuing a notification in the
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official gazette. The appropriate government may fix or revise minimum wages for
different classes of workers, different localities, different hours of work, etc. The
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appropriate government may also fix different minimum wages for different periods such
as per day, per week, per month etc. The appropriate government may fix or revise
minimum wages either by appointing committees or sub-committees consisting of
representatives of employers and employees or by publishing draft proposals in the
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official gazette and inviting objections or suggestions from interested parties. In both
cases, the appropriate government has to consider the advice of the committees or
sub-committees or the objections or suggestions received from the public before issuing
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the final notification. The appropriate government has to review the minimum wages at
intervals not exceeding five years and revise them if necessary [Section 3(1B)]. The
minimum wages fixed or revised by the appropriate government are binding on all
employers and employees in the scheduled employment [Section 4]. Any employer who
pays less than the minimum wages to any employee is liable for prosecution and penalty
[Section 20].
11. Occupational diseases.
Occupational diseases are those diseases that arise out of or in the course of
employment due to the nature of work or exposure to hazardous substances. The
Employees' Compensation Act, 1923 provides for compensation to workers who suffer
from occupational diseases. The Act specifies a list of occupational diseases in
Schedule III and prescribes the conditions for claiming compensation. The Act also
empowers the Central Government to add or modify the list of occupational diseases by
notification. Some of the occupational diseases recognized by the Act are silicosis,
asbestosis, lead poisoning, anthrax, etc.

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12. Continuous service' for calculation of gratuity.
Continuous service' for calculation of gratuity is defined under Section 2A of the
Payment of Gratuity Act, 1972. According to this section, an employee is said to be in
continuous service if he has worked for not less than 240 days in the preceding 12

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months for an establishment working for less than six days in a week, or not less than
190 days in the preceding 12 months for an establishment working for six days in a
week. The section also provides for certain exceptions and relaxations for calculating
continuous service, such as maternity leave, lay-off, strike, lock-out, etc.
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13. The concept of wages under the Minimum Wages Act,
1948.
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The concept of wages under the Minimum Wages Act, 1948 is defined under Section
2(h) of the Act. According to this section, wages means all remuneration capable of
being expressed in terms of money, which would be payable to a person employed in
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respect of his employment or work done in such employment. The section also includes
certain allowances and components in the definition of wages, such as basic pay,
dearness allowance, house rent allowance, etc. However, the section excludes certain
payments from the definition of wages, such as bonus, overtime pay, gratuity, provident
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fund contribution, etc.


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14. Asiad Workers све.


Asiad Workers Case is a landmark judgment of the Supreme Court of India delivered in
1982. The case arose out of a writ petition filed by a group of workers engaged in the
construction of various facilities for the Asian Games held in Delhi in 1982. The
petitioners challenged the violation of their rights to minimum wages, equal pay for equal
work, health and safety measures, etc. by the contractors and authorities. The Supreme
Court held that the workers were entitled to these rights as guaranteed by the
Constitution and various labour laws. The Court also issued several directions and
guidelines for ensuring the welfare and protection of the workers.

15. The rules for determination and distribution of bonus.

The rules for determination and distribution of bonus are laid down under the Payment
of Bonus Act, 1965. The Act provides for payment of minimum and maximum bonus to

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eligible employees based on their salary or wage and the allocable surplus of the
employer. The Act also prescribes the formula for calculating the allocable surplus and

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the available surplus. The Act also specifies the conditions and exceptions for eligibility
and disqualification of bonus. The Act also provides for proportionate reduction of bonus
in case of absence from duty and recovery of bonus in case of misconduct.

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16. The term factory' under the Factories Act, 1948.
The term 'factory' under the Factories Act, 1948.
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A 'factory' is defined under section 2(m) of the Factories Act, 1948 as any premises
where ten or more workers are working or were working on any day of the preceding
twelve months, and in any part of which a manufacturing process is being carried on with
the aid of power, or is ordinarily so carried on; or where twenty or more workers are
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working or were working on any day of the preceding twelve months, and in any part of
which a manufacturing process is being carried on without the aid of power, or is
ordinarily so carried on. The Supreme Court has held that the term 'factory' should be
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interpreted liberally and not restrictively, and that it includes any place where articles are
made, altered, repaired, ornamented, finished or otherwise adapted for use .
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17. Fixation of wage periods.


Fixation of wage periods.

The Payment of Wages Act, 1936 regulates the payment of wages to certain classes of
employed persons. Section 4 of the Act provides that every person responsible for the
payment of wages shall fix periods (in this Act referred to as wage-periods) in respect of
which such wages shall be payable. No wage-period shall exceed one month. The
appropriate government may prescribe the wage-periods for different classes of
employed persons .

18. ESI Court.


ESI Court.

The Employees' State Insurance Act, 1948 provides for certain benefits to employees

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in case of sickness, maternity and employment injury. Section 74 of the Act establishes
an ESI Court for each local area for the purpose of adjudicating disputes or claims

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arising under the Act. The ESI Court consists of a presiding officer appointed by the
state government in consultation with the high court. The ESI Court has the same
powers as a civil court under the Code of Civil Procedure, 1908 .

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19. Bar against double remedies.
Bar against double remedies.
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Section 53 of the Employees' State Insurance Act, 1948 provides that no employee
shall be entitled to receive or recover, whether from his employer or any other person,
any compensation or damages under the Workmen's Compensation Act, 1923 or any
other law for the time being in force or otherwise, in respect of an employment injury
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sustained by him as an employee under this Act. This section aims to prevent double
recovery by an employee for the same injury from different sources .
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20. The doctrine of Notional Extension.


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The doctrine of Notional Extension.


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The doctrine of Notional Extension is a principle applied by courts to extend the scope of
employment injury under the Employees' State Insurance Act, 1948. According to this
doctrine, an accident arising in the course of employment does not cease to be so
merely because it occurs outside the premises where work is done, provided there is a
causal connection between the accident and the employment. The doctrine also applies
to accidents occurring before entering or after leaving the premises, if such accidents are
incidental to or connected with the employment .
21. Essential elements of a factory.
Essential elements of a factory.

A factory is defined under section 2(m) of the Factories Act, 1948 as any premises
where ten or more workers are working with the aid of power, or twenty or more workers
are working without the aid of power, in any manufacturing process. The essential
elements of a factory are: (1) premises, (2) manufacturing process, (3) workers, and (4)
power. The Supreme Court in **Municipal Corporation of Delhi v. Gurnam Kaur** (1989)
held that a factory must have all these four elements to be covered under the Act.

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22. Hazardous processes.
Hazardous processes.

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Hazardous processes are those processes which involve a risk of bodily injury,
poisoning, disease or pollution to the workers or the general public due to the nature of
the activity, raw materials, by-products, wastes or emissions. Section 2(cb) of the
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Factories Act, 1948 lists some examples of hazardous processes such as chemical,
rubber, asbestos, petroleum and nuclear industries. The Act imposes special obligations
on the occupier and the manager of a factory engaged in hazardous processes, such as
disclosure of information, safety committees, emergency plans, health examinations and
medical facilities.
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23. Fixation and revision of minimum wages.


Fixation and revision of minimum wages.
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The Minimum Wages Act, 1948 empowers the appropriate government to fix and
revise the minimum rates of wages for different categories of workers employed in
various scheduled employments. The Act provides for two methods of fixation and
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revision of minimum wages: (1) by committees appointed by the government, and (2) by
notification in the official gazette. The government has to consult the advisory board
before fixing or revising the minimum wages by notification. The minimum wages have to
be revised at intervals not exceeding five years.
24. Law relating to shops and commercial establishments.
Law relating to shops and commercial establishments.

The law relating to shops and commercial establishments is governed by various state
enactments which regulate the conditions of work and employment in shops and other
commercial establishments. The main objectives of these laws are to ensure reasonable
hours of work, weekly holidays, annual leave, payment of wages, health and safety,
welfare and social security of the workers. Some examples of these laws are: **The
Delhi Shops and Establishments Act, 1954**, **The Maharashtra Shops and

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Establishments Act, 2017**, **The Karnataka Shops and Commercial
Establishments Act, 1961**, etc.

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25. Explain the concept of social security and examine the

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impact of industrialization on social security.
Explain the concept of social security and examine the impact of industrialization on
social security.
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Social security is the concept of providing protection and assistance to workers and their
dependents against various contingencies such as sickness, maternity, disablement,
death, unemployment, old age, etc. Social security aims to prevent or alleviate poverty,
insecurity and social exclusion among the working population. Social security in India is
mainly governed by statutory acts such as **The Employees' State Insurance Act,
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1948**, **The Employees' Provident Funds and Miscellaneous Provisions Act,


1952**, **The Payment of Gratuity Act, 1972**, etc.
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Industrialization has both positive and negative impacts on social security. On one hand,
industrialization creates more employment opportunities, increases productivity and
income levels, enhances skill development and promotes economic growth. On the other
hand, industrialization also exposes workers to various risks such as occupational
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hazards, accidents, diseases, exploitation, displacement, redundancy and competition.


Therefore, industrialization necessitates the expansion and improvement of social
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security measures to protect the workers from these risks and to ensure their well-being.

26. Discuss the objectives of the ILO and its influence on


Indian Labour Legislations and the social security aspects
thereof.
The International Labour Organization (ILO) is a specialized agency of the United
Nations that deals with labour issues and promotes social justice and human rights. The
main objectives of the ILO are:

- To promote and realize standards and fundamental principles and rights at work.
- To create greater opportunities for women and men to secure decent employment and
income.
- To enhance the coverage and effectiveness of social protection for all.
- To strengthen tripartism and social dialogue.

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The ILO has influenced Indian Labour Legislations and the social security aspects

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thereof in various ways. Some examples are:

- The ILO conventions and recommendations have provided guidance and inspiration for
the enactment and amendment of various labour laws in India, such as the Minimum
Wages Act, 1948; the Industrial Disputes Act, 1947; the Maternity Benefit Act,

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1961; the Equal Remuneration Act, 1976; etc.
- The ILO has provided technical assistance and cooperation to India in various fields of
labour administration, labour inspection, labour statistics, vocational training,
occupational safety and health, child labour, etc.
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- The ILO has facilitated social dialogue and tripartite consultation among the
government, employers and workers in India on various labour issues and policies.
- The ILO has supported the development and implementation of social security
schemes in India, such as the Employees' State Insurance Scheme (ESI), the
Employees' Provident Fund Scheme (EPF), etc.
N
YA

27. Explain the concept of Notional extension of time and


place of employment..
H

The concept of notional extension of time and place of employment means that an
employee is deemed to be in the course of employment even when he or she is outside
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the actual time and place of work, provided that there is a reasonable nexus between his
or her work and the accident that caused injury or death. This concept is based on the
principle that an employer owes a duty of care to his or her employees not only during
the working hours and within the premises of work, but also before and after the working
hours and outside the premises of work, if such situations are incidental to or connected
with his or her work.

For example, an employee who is travelling to or from his or her place of work by a
mode of transport provided by the employer is considered to be in the course of
employment even if he or she meets with an accident on the way. Similarly, an employee
who is performing some duty or function related to his or her work at a place other than
his or her usual place of work is considered to be in the course of employment even if he
or she suffers an injury at that place.

28. Discuss the Employees State Insurance Scheme as a


social security measure, examining its nature and scope.

H
The Employees State Insurance Scheme (ESI) is a social security measure that
provides medical care and cash benefits to employees in case of sickness, maternity,

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disablement and death due to employment injury. The scheme is governed by
the Employees' State Insurance Act, 1948 and administered by the Employees'
State Insurance Corporation (ESIC).

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The nature and scope of the ESI scheme are as follows:

- The scheme covers employees who are employed in factories and other
establishments where ten or more persons are employed for wages.
- The scheme provides benefits such as medical care for self and family members,
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sickness benefit, maternity benefit, disablement benefit, dependants' benefit,
funeral expenses etc.
- The scheme is financed by contributions from both employers and employees at
specified rates.
- The scheme is implemented through a network of ESI hospitals,
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dispensaries,
clinics,
diagnostic centres etc. as well as tie-ups with private hospitals
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and doctors.
- The scheme also provides vocational rehabilitation,
occupational health and safety,
and social security education to the insured persons and their employers.
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D

29. What is Bonus ? Discuss the object and eligibility for


bonus.

Bonus is an additional payment made to employees over and above their normal wages
or salary. The object of bonus is to share the profits of the employer with the employees
and to motivate them to work efficiently and productively.
The eligibility for bonus is governed by the Payment of Bonus Act, 1965, which applies
to every factory and establishment where twenty or more persons are employed on any
day during an accounting year. The main conditions for eligibility are:

- The employee must have worked for at least thirty days in the accounting year.
- The employee must have drawn wages or salary not exceeding twenty-one thousand
rupees per month.
- The employer must have made profits in the accounting year.

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The minimum bonus payable to an eligible employee is 8.33% of his or her annual
wages or salary or one hundred rupees, whichever is higher. The maximum bonus

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payable is 20% of his or her annual wages or salary or seven hundred rupees,
whichever is higher.

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30. Disenss the meaning and objectives of Gratuity and
Employees Provident Fund Scheme.
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Gratuity is a lump sum payment made to an employee on his or her retirement,
resignation, death or disablement as a gesture of gratitude for his or her long and faithful
service. The meaning and objectives of gratuity are:
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- To provide financial security and support to the employee and his or her family after
cessation of employment.
- To reward the employee for his or her loyalty and contribution to the employer's
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business.
- To encourage the employee to stay with the employer for a longer period.

The gratuity is governed by the Payment of Gratuity Act, 1972, which applies to every
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factory, mine, oilfield, plantation, port, railway, shop or establishment where ten or more
persons are employed on any day in the preceding twelve months. The main conditions
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for eligibility are:

- The employee must have completed five years of continuous service with the employer,
except in case of death or disablement.
- The employee must have ceased to be in employment due to retirement, resignation,
death or disablement.
- The amount of gratuity payable is fifteen days' wages for every completed year of
service or part thereof in excess of six months, subject to a maximum of twenty lakh
rupees.
Employees Provident Fund Scheme (EPF) is a compulsory savings scheme that
provides retirement benefits to employees in the organized sector. The meaning and
objectives of EPF are:

- To promote thrift and saving among employees for their old age.
- To provide a regular source of income to employees after retirement.
- To provide financial assistance to employees and their dependants in case of
emergencies such as illness, marriage, education etc.

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The EPF scheme is governed by the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 and administered by the Employees' Provident

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Fund Organization (EPFO).

The scheme covers every establishment where twenty or more persons are employed
on any day during an accounting year. The main features of the scheme are:

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- The employee and the employer contribute 12% each of the employee's basic wages,
dearness allowance and retaining allowance to the EPF account every month.
- The employee can withdraw his or her EPF balance partially or fully under certain
conditions such as retirement, resignation, unemployment, marriage, education etc.
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- The employee also gets interest on his or her EPF balance at a rate notified by
the government every year.
- The employee also gets a pension benefit under the Employees' Pension Scheme,
1995, which is a part of the EPF scheme.
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Part B
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1. A cashier while travelling in a train with a large sum of


money for payment to his employer's workmen was robbed
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and murdered. The question for consideration was whether it


amounted to an industrial accident so that his legal
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representatives may claim compensation. Decide.


2. A workman employed by a celliery was in a railway accident
while travelling in a special celliery train from his work spot to
his dwelling place. It was not obligatory for the workman to
use the conveyance provided by the railway company for his
to and fro journey from the place of work to his residence.
The workman who go injured in such a journey claimed
compensation on the ground that his employment began

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when he got into the train and ceased when the left it.
Examine and discuss whether the workman is entitled to

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claim compensation.

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3. The question for decision is whether a shareholder
employed in a registered co-operative society is an
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employee and the ESI Act is applicablo in his case. Example
and discuss.
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4. The accused, a manager of a factory had put covers on the


screw conveyers and thus they were secured. A workman
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removed one of the covers while the machine was moving.


This resulted in an injury to the workman. The accident took
place because of the workman's utter disregard of a notice
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displayed in the premises of the factory that no one should


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touch the moving machine or safety guards. The accused


manager was convicted for the injury caused to the workman
by the machinery. The question was whether the order of
conviction and sentence passed against the accused was
legal and justified Decide.
5. A driver of bus belonging to the employer was involved in an
accident which resulted in the impairment of free movement
of his left hand disabling him from driving vehicles. He is,
however, capable of performing other works. He claims
compensation contending that the said accident had resulted

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in permanent disablement of driving vehicles. Will he
succeed? Decide.

AS
6. 8. An employee who was on his way to factory was attacked

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by some rioters, just five hundred meters sway from the
factory premises, and died as a result of injuries sustained.
Decide whether the deceased employee's wife is entitled to
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get the benefits under the Employees' State Insurance Act.

7. Mr. 'X', an employee of ABC Ltd. had his services terminated


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for negligence leading to losses to the Company. Is he


eligible for payment of any gratuity under the Payment of
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Gratuity Act, 1972? Decide giving reasons.


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8. An employee increased his share of provident fund


contribution. Is the employer also liable to proportionately
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increase his share of contribution under the relevant


statutory provisions?
9. By a Governmental Notification, the State of Kerala in
exorcise of power conferred under the Minimum Wages Act,
fixed the minimum rate of wages in respect of the different
categories of employees serving in private schools. The Said
notification was challenged by a private school management
on ground that teachers are not workmen wishin purview of
Act. Discuss the validity of the notification with the help of a

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decided case.

AS
10. The gratuity of a workman was not paid by his employer
on the ground that be assaulted supervisor inside the factory.

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His entire gratuity was forfeited. Can the workman recover
his gratuity amount? Advice.
PR
11. A workman went outside the factory during his
employment time for his personal purpose and he met with
an accident outside the premises. Can the workman claim
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compensation under the Employees' Compensation Act,


1923?
YA
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12. X employed in pumping of oil, washing and servicing of


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vehicles by a petrol pump. Does the activity amount to


manufacturing process under the Factories Act?
13. A company was running into losses and was unable to
pay the minimum rates of wages to its workers. The workers
demanded that the employer must pay them the minimum
rates of wages. The company (employer) intends to
approach the Court challenging the constitutional validity of
the Minimum Wages Act, 1948. Advise the company.

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14. A seventeen-year-old boy was employed in a factory. He

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was asked by the supervisor to work on dangerous machine,
for a period of seven days and was offered double the
amount of wages. He consented to work. Is the action of the

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supervisor legal? Give reasons for your answer.
PR
15. An employee was absent from duty without leave. The
employer took the plea that it had resulted in the breach of
continuous service for the purposes of gratuity under the
Payment of Gratuity Act, 1972. Is the plea of the employer
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legal and tenable ?


YA

16. In an accounting year, a company to which the payment of


Bonus Act, 1965 applies, suffered heavy losses. The Board
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of Directors of the said company decided not to give bonus


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to the employees. The employees of the company move to


the Court for relief. Decide in the light of the provisions of the
said Act whether the employees will get relief.
17. A shareholder of registered co-operative society who is
working as an employee of the co-operative society claims
the benefit of the ESI Act. The ESI Corporation contends
that he is not eligible for such benefits as he is a shareholder
of the co-operative society. Decide.

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18. The brothers and sisters of a workman who died in an
accident arising out of and in the course of employment

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claim Compensation under the workmens Compensation Act
from the Management. as a dependant of the deceased
because the deceased was unmarried at the time of his

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death. Will they succeed ? Decide.
PR
19. The accused manager of a factory had put covers the
screw veyor and they were secured. A workman removed
one of the covers while the machine was moving. This
resulted in injury to the workunan's utter disregard to the
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notice displayed in the factory premises that no one should


touch the moving machine or safety guards. When the
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accused manager was convicted the question arose whether


the conviction of the accused was legaly valid. Decide.
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D
20. An employee was retrenched from service. He claims
gratuity on the ground that his services were terminated. The
management contends that gratuity is a retirement benefit
granted to an employee when he retires from service and not
in any case when his service is terminated otherwise.
Decide.

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Part C

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1. Discuss the social security measures against employment

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injuries and compensation to workmen. Examine the nature
and extent of the employer's liability referring to the relevant
provisions of the pertinent legislative enactments in this
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regard.
The social security system in India aims to protect workers and their families from
various risks and vulnerabilities arising from unemployment, sickness, work-related
injury, maternity or death. One of the important aspects of social security is the provision
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of compensation to workmen who suffer employment injuries or occupational diseases


due to their work conditions.
YA

The Workmen's Compensation Act of 1923 was the first statute that introduced the
principle of statutory compensation for workmen who sustained personal injuries by
accidents "arising out of and in the course of employment" . The Act granted the right of
compensation to the workman, and the employer was liable to pay the stipulated
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amount, unless he could prove that the injury was caused by the workman's own
negligence or misconduct. The Act also provided for the appointment of Workmen's
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Compensation Commissioners to determine the claims and adjudicate upon disputes.


The Act was amended several times to extend its scope and coverage to include more
categories of workers and employments.

However, the Workmen's Compensation Act had some limitations and drawbacks, such
as the application of the doctrines of "common employment" and "assumed risk", which
could be used by the employer as defences to avoid liability. These doctrines were
based on the notion that the workman had voluntarily accepted the risks inherent in his
employment, or that he had consented to share the risks with his fellow workers. To
overcome these inequities, the Employer's Liability Act 1938 was passed, which sought
to eliminate the operation of these two doctrines in the payment of statutory
compensation . The Employer's Liability Act as amended in 1951, removed these
defences and fixed a statutory liability upon the employer to pay compensation for
employment injuries.

The Employees' State Insurance Act 1948 was another landmark legislation that
provided an integrated system of social security for workers, covering health and
sickness insurance, invalidity relief and accident benefits . The scheme envisaged
compulsory insurance, premium paid by the employers and workmen, and the

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administrative cost subsidised by the State. The scheme covers workers who are
employed in factories and other notified establishments, and who earn wages below a

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certain limit. The scheme provides benefits for sickness, maternity and employment
injury for those who are entitled under the Act. The scheme also provides medical care
and rehabilitation services for insured persons.

The nature and extent of the employer's liability for employment injuries under these

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enactments can be summarised as follows:

- Under the Workmen's Compensation Act, the employer is liable to pay


compensation as per the schedule given in the Act, which is based on the percentage of
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loss of earning capacity caused by the injury or disease. The compensation is also
subject to a minimum and maximum limit. The employer can avoid liability only if he
proves that the injury was caused by the workman's own negligence or misconduct, or
that he was not in his employment at the time of accident .
- Under the Employer's Liability Act, the employer is liable to pay compensation as
per the common law principles of torts, which are based on the actual loss or damage
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suffered by the workman. The employer cannot escape liability by invoking the doctrines
of common employment or assumed risk .
YA

- Under the Employees' State Insurance Act, the employer is liable to pay contribution
towards the insurance fund as per the rates prescribed by the Central Government. The
employer cannot reduce his liability by deducting any amount from his workman's
wages. The employer is also liable to pay damages for any default in payment of
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contribution or compliance with any provision of the Act .

The social security measures against employment injuries and compensation to


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workmen in India reflect a progressive development from a charitable approach to a


statutory obligation to a comprehensive insurance scheme. These measures aim to
provide relief and protection to workers and their dependents in times of crisis, and to
promote their welfare and well-being.
2. Discuss the measures provided for industrial hygiene,
industrial health and safeguards against industrial accidents
in the light of the relevant provisions of the legislations
relating to them.
Industrial hygiene, health and safety are important aspects of labour welfare that aim to
protect the workers from occupational hazards and diseases. The legislations relating to
these aspects are:

H
- The Factories Act, 1948: This Act provides for the health, safety and welfare of
workers in factories. It lays down the standards for working conditions, ventilation,

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lighting, cleanliness, sanitation, drinking water, canteen, restrooms, first aid, medical
examination, etc. It also prescribes the measures for prevention of accidents, fire,
explosion, dangerous machinery, etc. It also regulates the working hours, overtime,
weekly holidays, annual leave, etc. of the workers.

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- The Mines Act, 1952: This Act applies to all mines in India and provides for the health
and safety of mine workers. It lays down the standards for ventilation, dust control,
temperature, lighting, drinking water, latrines and urinals, medical facilities, etc. It also
prescribes the measures for prevention of accidents, fire, explosion, inflammable gas,
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flooding, etc. It also regulates the working hours, intervals of rest, weekly holidays,
annual leave, etc. of the mine workers.

- The Dock Workers (Safety, Health and Welfare) Act, 1986: This Act applies to all
dock workers engaged in loading and unloading operations in any port. It provides for
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the health and safety of dock workers by laying down the standards for working
conditions, ventilation, lighting, cleanliness, sanitation, drinking water, canteen,
restrooms, first aid, medical examination, etc. It also prescribes the measures for
YA

prevention of accidents, fire, explosion, dangerous cargo handling equipment,


etc.

Some of the case laws relating to these legislations are:


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- Ramji Patel v. State of Gujarat (1979): In this case, the Supreme Court held that the
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provisions of the Factories Act are mandatory and any violation of them would amount to
an offence punishable under the Act. The Court also observed that the Act is a social
welfare legislation and should be interpreted liberally in favour of the workers.

- Workmen of Balmer Lawrie & Co. Ltd. v. Balmer Lawrie & Co. Ltd. (1985): In this
case,
the Supreme Court held that the provisions of the Mines Act are also mandatory and any
violation of them would entail criminal liability as well as civil liability for compensation to
the injured workers.
- R.K. Garg v. Union of India (1981): In this case,
the Supreme Court upheld the constitutional validity of the Dock Workers (Safety,
Health and Welfare) Act and observed that it is a beneficial legislation aimed at
protecting the dock workers from various hazards involved in their work.

3. Explain the concept of wages, and discuss the regulations


for fixation of wages, deductions and fines including fixation

H
of minimum wages and the revision. Write short critical notes
on maternity benefits, employees provident fund and

AS
pension schemes.
Wages are the remuneration paid to workers for their labour and services. Wages can be
in the form of money or in kind, and can be fixed by agreement, contract, law or custom.

AK
Wages are regulated by various provisions and case laws in Indian Labour Law, such as:

- The Payment of Wages Act, 1936: This Act regulates the payment of wages to certain
classes of workers, such as railway, factory, industrial and plantation workers. It lays
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down the rules for fixation of wage periods, time and mode of payment, deductions and
fines, and penalties for non-payment or delayed payment of wages.

- The Minimum Wages Act, 1948: This Act empowers the central and state
governments to fix and revise the minimum wages for different categories of workers,
such as agricultural, industrial and service workers. It also provides for the constitution of
N

advisory boards and committees, the procedure for fixing and revising minimum wages,
the payment of overtime wages, and the enforcement of the Act.
YA

- The Payment of Bonus Act, 1965: This Act provides for the payment of bonus to
employees in certain establishments, such as factories, mines, plantations and shops. It
defines the eligibility criteria, calculation formula, minimum and maximum rates, time limit
H

and mode of payment, deductions and set-offs, and recovery of bonus.

Some of the case laws that have interpreted and applied these provisions are:
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- Raptakos Brett & Co. Ltd. v. Workmen (1991): In this case, the Supreme Court held
that wages include not only basic pay but also dearness allowance and other allowances
that are ordinarily paid to workers. It also laid down the criteria for determining fair wages
based on the needs of workers, the capacity of employers, the prevailing rates in similar
industries, and the national economic policy.
- Airfreight Ltd. v. State of Karnataka (1999): In this case, the Supreme Court upheld
the constitutional validity of the Minimum Wages Act and held that it is not violative of the
right to freedom of trade and commerce under Article 19(1)(g) of the Constitution. It also
held that minimum wages are not fixed arbitrarily but on the basis of scientific data and
social justice.

- Bhagwan Das v. State of Haryana (2008): In this case, the Supreme Court held that
bonus is a deferred wage and not a gratuitous payment. It also held that bonus is
payable even if there is no profit or if there is loss in a particular year.

H
The concept of wages and its regulation are closely linked to the social security and
welfare of workers. Some of the legislations that provide for maternity benefits,

AS
employees provident fund and pension schemes are:

- The Maternity Benefit Act, 1961: This Act provides for maternity leave and benefits to
women employees in certain establishments, such as factories, mines, plantations and
shops. It grants 26 weeks of paid leave to women who have worked for at least 80 days

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in the preceding 12 months. It also provides for medical bonus, nursing allowance,
crèche facility and protection from dismissal or discrimination.

- The Employees' Provident Funds and Miscellaneous Provisions Act, 1952: This
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Act establishes a compulsory contributory provident fund scheme for employees in
certain establishments, such as factories, mines, plantations and shops. It also provides
for a family pension scheme and an insurance scheme for employees. It aims to provide
financial security and stability to employees after retirement or in case of death or
disability.
N

- The Employees' Pension Scheme, 1995: This Scheme is a part of the Employees'
Provident Funds Scheme and provides for monthly pension to employees who have
YA

completed 10 years of service or have attained 58 years of age. It also provides for
widow pension, children pension and orphan pension to the dependents of deceased
employees.
H

These legislations reflect the constitutional mandate under Article 43 of the Constitution
to secure living wages, decent standard of life and social security to workers.
D

4. Discuss the qualifications, powers and functions of the


Commissioner under the Employees' Compensation Act.
The Commissioner under the Employees' Compensation Act, 1923, is a quasi-judicial
authority appointed by the state government to adjudicate the claims and disputes
arising under the Act. The qualifications, powers and functions of the Commissioner are
as follows:

- Qualifications: Section 20 of the Act empowers the state government to appoint any
person as a Commissioner, who has been or is a judicial officer, or is a legal practitioner
of at least five years' standing, or is an officer of the central or state government or a
corporation owned or controlled by the central or state government, who is specially
qualified in the opinion of the state government for such appointment.
- Powers: The Commissioner has the same powers as a civil court under the Code of
Civil Procedure, 1908, for the purpose of taking evidence, administering oaths, enforcing

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attendance of witnesses, compelling discovery and production of documents and
material objects, issuing commissions for examination of witnesses and deciding

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questions of law and fact. The Commissioner can also enter and inspect any premises
where an employee works or has worked, examine any person whom he thinks fit to
examine, require any person to produce any document relevant to the inquiry and make
copies or take extracts from any such document. The Commissioner can also review his
own order on the ground of mistake or error apparent on the face of the record. The

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Commissioner can also transfer any matter pending before him to another
Commissioner with the consent of the state government.
- Functions: The main function of the Commissioner is to hear and decide the claims for
compensation made by an employee or his dependents in case of an injury caused by
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an accident arising out of and in the course of his employment, resulting in death or
disablement. The Commissioner has to determine the amount of compensation payable
to the claimant in accordance with the provisions of the Act and award it within a period
of three months from the date of commencement of the proceedings. The Commissioner
can also apportion the compensation among the dependents of a deceased employee,
order for payment of interest and penalty on delayed payment of compensation, direct
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for depositing compensation in a bank or investing it in securities, order for payment of


funeral expenses, medical expenses and half-monthly payments to a disabled
YA

employee, direct for recovery of compensation from an employer who has failed to pay it,
settle any question as to whether a person is an employee or an employer under the Act,
decide any question relating to liability of an employer to pay compensation, determine
any question as to whether an accident arose out of and in the course of employment,
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decide any question as to whether an employee has contracted an occupational disease


specified in Schedule III of the Act and any other matter arising under the Act.
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The Commissioner plays a vital role in ensuring that the employees get their due
compensation for any injury suffered by them during their employment and that the
employers comply with their obligations under the Act.

Some case laws that illustrate the role and functions of the Commissioner are:
- In Ramesh Chandra v. Randhir Singh (AIR 1990 SC 1406), the Supreme Court held
that the Commissioner has exclusive jurisdiction to decide all questions arising under the
Act and no civil court can entertain any suit on such questions.
- In Oriental Insurance Co. Ltd. v. Meena Variyal (2007) 5 SCC 428), the Supreme
Court held that the Commissioner can review his own order only on the ground of
mistake or error apparent on the face of record and not on any other ground.
- In Sushila Devi v. Hari Singh (2010) 12 SCC 603), the Supreme Court held that the
Commissioner can award interest on delayed payment of compensation from the date
when it became due till its actual payment.

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AS
5. Define the term 'factory'. Explain the provisions relating to
'safety' of workers under the Factories Act, 1948.
The term 'factory' is defined in Section 2(m) of the Factories Act, 1948 as "any premises

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including the precincts thereof - (i) whereon ten or more workers are working, or were
working on any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on with the aid of power, or is ordinarily so
carried on, or (ii) whereon twenty or more workers are working, or were working on any
day of the preceding twelve months, and in any part of which a manufacturing process is
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being carried on without the aid of power, or is ordinarily so carried on".

The provisions relating to 'safety' of workers under the Factories Act, 1948 are contained
in Chapter IV (Sections 21 to 41) of the Act. These provisions aim to protect the
workers from various hazards such as machinery, electricity, fire, explosives, fumes,
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dust, noise, etc. Some of the important safety provisions are:

- Section 21: Fencing of machinery. This section requires that every dangerous part of
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any machinery shall be securely fenced by safeguards of substantial construction which


shall be constantly maintained and kept in position while the parts of machinery they are
fencing are in motion or in use.
- Section 22: Work on or near machinery in motion. This section prohibits any woman or
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young person from cleaning, lubricating or adjusting any part of a prime mover or
transmission machinery while it is in motion. It also prohibits any person from working on
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or near any other moving machinery unless he has been fully instructed as to the
dangers arising in connection with such machinery and the precautions to be observed.
- Section 23: Employment of young persons on dangerous machines. This section
prohibits any young person from working at any machine unless he has been fully
instructed as to the dangers arising in connection with such machine and the
precautions to be observed, and has received sufficient training in work at the machine.
- Section 24: Striking gear and devices for cutting off power. This section requires that
suitable striking gear or other efficient mechanical appliances shall be provided and
maintained and used to move driving belts to and from fast and loose pulleys which form
part of the transmission machinery. It also requires that suitable devices for cutting off
power in emergencies from running machinery shall be provided and maintained in every
workroom.
- Section 25: Self-acting machines. This section prohibits any self-acting machine from
being used in such a way that any part thereof moves within a distance of eighteen
inches from any fixed structure which is not part of the machine.
- Section 26: Casing of new machinery. This section requires that every set screw, bolt
or key on any revolving shaft, spindle, wheel or pinion shall be sunk, encased or
otherwise effectively guarded to prevent danger. It also requires that all spur, worm and
other toothed or friction gearing which does not require frequent adjustment while in

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motion shall be completely encased unless it is so situated as to be as safe as it would
be if it were completely encased.

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- Section 27: Prohibition of employment of women and children near cotton-openers.
This section prohibits any woman or child from being employed in any part of a factory
for pressing cotton in which a cotton-opener is at work.
- Section 28: Hoists and lifts. This section requires that every hoist and lift shall be of
good mechanical construction, sound material and adequate strength and properly

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maintained. It also requires that every hoistway and liftway shall be sufficiently protected
by an enclosure fitted with gates, and that the maximum safe working load shall be
plainly marked on every hoist or lift.
- Section 29: Lifting machines, chains, ropes and lifting tackles. This section requires
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that all lifting machines and all chains, ropes and lifting tackles shall be of good
construction, sound material, adequate strength and free from defects. It also requires
that they shall be properly maintained and thoroughly examined by a competent person
at least once in every period of twelve months.
- Section 30: Revolving machinery. This section requires that every flywheel directly
connected to any prime mover and every part of a stock-bar which projects beyond the
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headstock of a lathe shall be securely fenced.


- Section 31: Pressure plant. This section requires that if any part of a plant or
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machinery used in a factory is operated at a pressure above atmospheric pressure,


effective measures shall be taken to ensure that the safe working pressure of such part
is not exceeded.
- Section 32: Floors, stairs and means of access. This section requires that all floors,
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stairs, passages and gangways shall be of sound construction and properly maintained
and free from obstructions and substances likely to cause persons to slip. It also requires
that safe means of access shall be provided and maintained to every place at which any
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person has at any time to work.


- Section 33: Pits, sumps, openings in floors, etc. This section requires that every fixed
vessel, sump, tank, pit or opening in the ground or in a floor which, by reason of its
depth, situation, construction or contents, is or may be a source of danger, shall be either
securely covered or securely fenced.
- Section 34: Excessive weights. This section prohibits any person from being employed
in any factory to lift, carry or move any load so heavy as to be likely to cause him injury.
- Section 35: Protection of eyes. This section requires that suitable goggles or effective
screens shall be provided to protect the eyes of any person employed in any process
which involves risk of injury to the eyes from particles or fragments thrown off in the
course of the process.
- Section 36: Precautions against dangerous fumes, gases, etc. This section requires
that no person shall be allowed to enter 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 of persons being overcome thereby, unless it
is provided with a manhole of adequate size or other effective means of egress. It also
requires that no person shall be allowed to enter such confined space until all practicable

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measures have been taken to remove any gas, fume, vapour or dust which may be
present and to prevent any ingress of such gas, fume, vapour or dust and unless a

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certificate in writing has been given by a competent person that the space is reasonably
free from dangerous gas, fume, vapour or dust.
- Section 37: Explosive or inflammable dust, gas, etc. This section requires that all
practicable measures shall be taken to prevent the formation of explosive or inflammable
dust, gas, fume or vapour and its accumulation and ignition in any factory. It also

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requires that where any part of a plant or machinery contains any explosive or
inflammable gas under pressure greater than atmospheric pressure, that part shall not
be opened except in accordance with the prescribed safety measures.
- Section 38: Precautions in case of fire. This section requires that every factory shall be
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provided with adequate and suitable means of escape in case of fire for all persons
employed therein and with the necessary equipment and facilities for extinguishing fire. It
also requires that all such means of escape and equipment and facilities shall be
properly maintained and kept free from obstruction and shall be marked by legible
notices indicating their location.
- Section 39: Power to require specifications of defective parts or tests of stability. This
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section empowers the Inspector to require the occupier or manager of a factory to


furnish him with the specifications of the materials used in the construction of any part of
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a plant or machinery which appears to him to be defective or not sufficiently strong for
the purpose for which it is used. It also empowers the Inspector to make such tests as
may be necessary for ascertaining the strength thereof.
- Section 40: Safety of buildings and machinery. This section requires that if it appears
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to the Inspector that any building or part of a building or any part of the ways, works,
machinery or plant in a factory is in such a condition that it may be dangerous to human
life or safety, he may serve on the occupier or manager of the factory an order in writing
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specifying the measures which in his opinion should be adopted before a specified date.
- Section 40A: Maintenance of buildings. This section requires that if it appears to the
Inspector 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, he
may serve on the occupier or manager of the factory an order in writing specifying the
repairs which he considers necessary and requiring them to be carried out before a
specified date.
- Section 40B: Safety Officers. This section requires that in every factory wherein one
thousand or more workers are ordinarily employed or wherein manufacturing process
involves any risk of bodily injury, poisoning or disease there shall be employed such
number of safety officers as may be prescribed.
- Section 41: Power to make rules to supplement this Chapter. This section empowers
the State Government to make rules prescribing further precautions regarding safety.

Some of the case laws relating to safety provisions under the Factories Act are:

- In **Municipal Corporation Of Delhi vs Subhagwanti & Ors** (AIR 1966 SC 1750), it

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was held that where death was caused due to collapse of clock tower which was not
properly maintained by Municipal Corporation under whose control it was vested by

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statute, Municipal Corporation was liable for negligence and damages were awarded
accordingly.
- In **Sushila Devi vs State Of Uttar Pradesh & Ors** (AIR 1978 SC 694), it was held
that where death was caused due to electrocution by coming into contact with live wire

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6. Explain the salient features of the Maternity Benefit Act,
1961. What are the key amendments introduced by the
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Maternity benefits (Amendment) Act, 2017?
The Maternity Benefit Act, 1961 is an Act that regulates the employment of women in
certain establishments for certain periods before and after childbirth and provides for
maternity benefit and certain other benefits. The salient features of the Act are as
follows:
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- It applies to every establishment being a factory, mine, plantation or any other


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establishment as notified by the appropriate Government, except those covered by the


Employees' State Insurance Act, 1948.
- It entitles every woman who has worked for at least 80 days in the preceding 12
months to maternity benefit, which is payment of wages at the rate of her average daily
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wage for the period of her actual absence before and after delivery, subject to a
maximum of 26 weeks. Out of these 26 weeks, not more than eight weeks can precede
the date of delivery.
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- It also provides for a medical bonus of Rs. 3,500 if no pre-natal or post-natal care is
provided by the employer. It also grants two nursing breaks of prescribed duration in
addition to the normal intervals for rest until the child attains the age of 15 months.
- It prohibits the dismissal or discharge of a woman during her pregnancy or maternity
leave, except for gross misconduct. It also prohibits any work of arduous nature or
involving long hours of standing during the period of one month before the expected date
of delivery and six weeks after delivery.
- It also provides for maternity leave of 12 weeks to a woman who adopts a child below
the age of three months or a commissioning mother (a biological mother who uses her
egg to create an embryo implanted in another woman). It also allows a woman to work
from home after availing maternity leave, if the nature of work permits and with the
mutual consent of the employer.

The Maternity Benefit (Amendment) Act, 2017 introduced some key amendments to
the Act, such as:

- It increased the maternity leave period from 12 weeks to 26 weeks for women having

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less than two surviving children and from six weeks to 12 weeks for women having two
or more surviving children.

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- It made it mandatory for every establishment having 50 or more employees to provide a
creche facility within a prescribed distance and allow four visits a day to the creche by a
woman.
- It also introduced an enabling provision for work from home for women after availing
maternity leave, subject to such conditions and period as may be mutually agreed upon

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by the employer and the woman.

Some of the case laws that have interpreted and applied the provisions of the Act are:
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- In Municipal Corporation of Delhi v. Female Workers (Muster Roll) [(2000) 3 SCC
224], the Supreme Court held that women working on casual or muster roll basis are
also entitled to maternity benefit under the Act, as they are also employees within the
meaning of Section 3(e) of the Act.
- In Neera Mathur v. Life Insurance Corporation of India [(1992) 1 SCC 286], the
Supreme Court held that asking a woman employee to furnish an undertaking that she
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will not get married within a specific period or that she will not get pregnant within a
specific period as a condition for appointment is violative of Articles 14 and 16 of the
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Constitution and amounts to discrimination on the ground of sex.


- In Air India v. Nergesh Meerza [(1981) 4 SCC 335], the Supreme Court struck down a
regulation that provided for termination of service of an air hostess on first pregnancy as
arbitrary and unreasonable and violative of Article 14 of the Constitution.
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7. "In fixing the minimum wage, the minimum wage must


ensure not only the sustenance of the employee and his
family but also preserve his efficiency as a worker and that is
what is contemplated by the Act-Discuss.
The question of fixing the minimum wage is one of the most important and contentious
issues in the Indian labour law. The Minimum Wages Act, 1948 is the central legislation
that regulates the minimum rates of wages for different categories of workers in different
sectors and regions. The objective of the Act is to ensure that the workers get a fair and
living wage that not only sustains their basic needs but also preserves their efficiency as
workers. The Act also aims to prevent the exploitation of labour and to promote their
welfare.

According to Section 3 of the Act, the appropriate government has the power to fix
and revise the minimum rates of wages for any scheduled employment, either for the
whole state or for any part thereof. The minimum rates of wages may consist of a basic
rate of wages and a special allowance (also known as dearness allowance) linked to the

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cost of living index, or a basic rate of wages with or without the cost of living allowance
and the cash value of concessions in respect of essential commodities supplied at

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concessional rates, or an all-inclusive rate allowing for both.

The procedure for fixing and revising the minimum rates of wages is laid down in
Section 5 of the Act. The appropriate government has to appoint one or more
committees or sub-committees to hold enquiries and advise it on the matter. The

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composition of such committees or sub-committees must include equal representation
from employers and employees in the scheduled employments, and independent
persons not exceeding one-third of its total number. The appropriate government has to
consider the advice of the committees or sub-committees and publish its proposal in the
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official gazette, inviting objections and suggestions within two months. After considering
such objections and suggestions, the appropriate government has to issue a notification
in the official gazette specifying the minimum rates of wages.

The Act also provides for an Advisory Board at both central and state levels, consisting
of representatives from employers, employees, independent persons and government
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officials. The functions of the Advisory Board are to advise the appropriate government
on matters related to fixing and revising minimum rates of wages, coordinating the work
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of committees and sub-committees, advising on any other matter referred to it by the


appropriate government.

The Supreme Court of India has held that in fixing the minimum wage, the minimum
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wage must ensure not only the sustenance of the employee and his family but also
preserve his efficiency as a worker and that is what is contemplated by the Act. In this
regard, some of the factors that have been considered by the courts are:
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- The prevailing market rates of wages in similar employments


- The level of national income and its distribution
- The requirements of social justice
- The cost of living and changes therein
- The productivity of labour
- The capacity of employers to pay
- The prevailing economic conditions
Some of the landmark cases on this issue are:

- Unichoyi v. State of Kerala (1961): In this case, the Supreme Court upheld the
constitutional validity of the Minimum Wages Act, 1948 and held that it does not violate
Article 14 (equality before law) or Article 19 (freedom of trade and commerce) of the
Constitution. The court also laid down some norms for determining a fair wage, such as:

- It must provide not merely for bare subsistence but for maintenance of health and
efficiency

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- It must provide for some measure of education, medical requirements and amenities
- It must vary from industry to industry depending upon its capacity to pay

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- It must take into account factors like cost of living, productivity, prevailing rates etc.

- Express Newspapers v. Union of India (1985): In this case, the Supreme Court held
that while fixing minimum wages under Section 3(1)(b) (which allows for different rates
for different classes of workers), there must be a rational basis for such classification

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based on intelligible differentia having a nexus with the object sought to be achieved by
fixing different rates. The court also held that notification fixing different rates for different
areas is not discriminatory if there is a reasonable basis for such differentiation based on
factors like cost of living, availability of labour etc.
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- Workmen v. Reptakos Brett & Co. Ltd (1992): In this case, the Supreme Court
revised its earlier norms for determining a fair wage and held that it should include not
only bare physical needs but also some measure of frugal comfort including education,
medical care etc. The court also held that while fixing minimum wages under Section
3(1)(a) (which allows for a single rate for all workers), there is no need to classify
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workers into different categories based on skill, experience etc., as such classification
would defeat the very purpose of ensuring a uniform minimum wage.
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Thus, it can be concluded that in fixing the minimum wage, the minimum wage must
ensure not only the sustenance of the employee and his family but also preserve his
efficiency as a worker and that is what is contemplated by the Act. The Act provides for a
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comprehensive and flexible procedure for fixing and revising minimum rates of wages,
taking into account various factors and interests of the stakeholders. The Act also
ensures that the workers get timely payment of wages and are protected from
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exploitation and discrimination. The Act is in consonance with the constitutional mandate
of social justice and economic development.
8. What are the underlying ideas behind social security
measures in India and why do we need social security for
employees?
Social security measures are policies and programs that aim to protect workers and their
families from various risks and contingencies that may arise due to unemployment,
sickness, disability, old age, or death. Social security measures also seek to promote
social justice and human dignity by ensuring a minimum standard of living and social
inclusion for all citizens.

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In India, social security measures are based on the constitutional mandate of Article 41,

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which directs the state to provide public assistance in cases of undeserved want, as well
as various labour laws and regulations that cover different aspects of social security for
employees. Some of the underlying ideas behind social security measures in India are:

- To provide income security and economic stability to workers and their dependents in

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times of need or crisis.
- To prevent poverty and destitution among workers and their families by providing them
with adequate benefits and services.
- To enhance the productivity and efficiency of workers by improving their health, safety,
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and welfare conditions.
- To foster social solidarity and cohesion by reducing inequalities and discrimination
among different sections of society.
- To contribute to the national development and growth by mobilizing resources and
creating employment opportunities.
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Social security for employees is needed in India because of the following reasons:
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- India has a large and diverse workforce, comprising both formal and informal sectors,
with varying degrees of coverage and protection under existing social security schemes.
- India faces multiple challenges such as rapid urbanization, globalization, demographic
transition, environmental degradation, and technological change, which have
implications for the employment and livelihoods of workers.
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- India has a high incidence of poverty, malnutrition, illiteracy, morbidity, and mortality
among workers and their families, especially in rural areas and among vulnerable groups
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such as women, children, elderly, disabled, and migrant workers.


- India has a low level of public expenditure on social security as a percentage of GDP,
compared to other developing and developed countries, which limits the scope and
quality of social security benefits and services available to workers.
- India has a complex and fragmented social security system, involving multiple
schemes, agencies, laws, and regulations, which creates problems of coordination,
implementation, monitoring, and evaluation.
Therefore, social security for employees is essential in India to ensure their well-being
and dignity, as well as to achieve the goals of social development and economic
progress.

Some of the provisions (with specific sections) and case laws (at least 3) in Indian
Labour Law that deal with social security for employees are:

- The Code on Social Security 2020: This is a consolidated legislation that aims to
simplify and rationalize the existing social security laws in India. It covers various
aspects of social security such as provident fund, pension, gratuity, maternity benefit,

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employee compensation, health insurance, unemployment benefit, etc. It also extends
the coverage of social security to unorganized workers, gig workers, platform workers,

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etc. Some of the specific sections in this code are:

- Section 2(88): Defines "social security" as the measures of protection afforded by the
appropriate Government to employees
- Section 6: Provides for the constitution of a National Social Security Board to

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recommend suitable schemes for different categories of workers
- Section 14: Provides for the establishment of a Central Board of Trustees to
administer the Employees' Provident Fund Scheme
- Section 20: Provides for the payment of contribution by employers and employees to
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the Employees' Provident Fund
- Section 26: Provides for the payment of pension to employees on retirement or
superannuation
- Section 28: Provides for the payment of gratuity to employees on termination of
employment
- Section 45: Provides for the payment of maternity benefit to women employees
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- Section 51: Provides for the payment of employee compensation in case of injury or
death due to an accident arising out of or in the course of employment
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- Section 61: Provides for the registration of establishments under the Employees'
State Insurance Act
- Section 63: Provides for the payment of contribution by employers and employees to
the Employees' State Insurance Corporation
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- Section 71: Provides for the payment of medical benefit to insured persons and their
dependents
- Section 74: Provides for the payment of sickness benefit to insured persons who are
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certified sick
- Section 76: Provides for the payment of disablement benefit to insured persons who
suffer from partial or total disablement due to an employment injury
- Section 78: Provides for the payment of dependents' benefit to the dependents of
insured persons who die due to an employment injury
- Section 85: Provides for the payment of unemployment benefit to insured persons
who become unemployed involuntarily
Some of the case laws related to this code are:

- Bandhua Mukti Morcha v. Union of India (1984): This case highlighted the plight of
bonded labourers in India and the need for social security measures to protect their
rights and interests. The Supreme Court held that the right to live with human dignity,
enshrined in Article 21 of the Constitution, includes the right to social security and
directed the government to take appropriate steps to implement the relevant laws and
schemes for the welfare of bonded labourers.
- R.C. Gupta v. State of Kerala (1995): This case dealt with the issue of whether the
Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (now

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replaced by the Code on Social Security 2020) is applicable to private educational
institutions. The Supreme Court held that such institutions are covered by the Act as

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they are engaged in an industry within the meaning of Section 2(g) of the Act and
directed them to comply with the provisions of the Act regarding provident fund, pension,
and gratuity.
- Regional Director, ESI Corporation v. Francis De Costa (1996): This case dealt
with the issue of whether casual workers are entitled to the benefits of the Employees'

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State Insurance Act, 1948 (now replaced by the Code on Social Security 2020). The
Supreme Court held that casual workers are covered by the Act as they are employees
within the meaning of Section 2(9) of the Act and entitled to the benefits of medical,
sickness, disablement, and dependents' benefits under the Act.
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- The Payment of Bonus Act, 1965: This is an act that provides for the payment of
bonus to employees in certain establishments on the basis of profits or on the basis of
production or productivity. It also lays down the eligibility criteria, calculation formula,
minimum and maximum rates, time limit, deductions, exemptions, etc. for the payment of
bonus. Some of the specific sections in this act are:
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- Section 2(13): Defines "bonus" as a share of the profits or a payment based on


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production or productivity
- Section 8: Provides for the eligibility of employees for bonus
- Section 10: Provides for the minimum bonus payable to employees
- Section 11: Provides for the maximum bonus payable to employees
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- Section 12: Provides for the calculation of bonus


- Section 15: Provides for the time limit for payment of bonus
- Section 17: Provides for deductions from bonus
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- Section 32: Provides for exemptions from bonus

Some of the case laws related to this act are:

- Workmen v. Reptakos Brett & Co. Ltd. (1991): This case dealt with the issue of
whether an employer can reduce or deny bonus to employees on account of financial
losses or adverse market conditions. The Supreme Court held that an employer cannot
do so unless there is a prior agreement or a provision in law that allows such reduction
or denial. The Court also held that bonus is a deferred wage and not a gratuitous
payment and that employees have a right to receive bonus as per the provisions of the
Payment of Bonus Act.
- Mahalakshmi Textile Mills Ltd. v. Government Industrial Tribunal (1967): This
case dealt with the issue of whether depreciation can be deducted from gross profits for
calculating bonus under the Payment of Bonus Act. The Supreme Court held that
depreciation can be deducted from gross profits as it is a prior charge on profits and that
it should be calculated as per Schedule VI of the Companies Act, 1956.
- Associated Cement Companies Ltd. v. Their Workmen (1959): This case dealt
with the issue of whether bonus can be paid on a uniform or differential basis to different

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categories of employees. The Supreme Court held that bonus can be paid on a
differential basis as it is based on profits or productivity and that there is no principle of

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equal pay for equal work applicable to bonus.

- The Maternity Benefit Act, 1961: This is an act that provides for maternity benefit to
women employees in certain establishments. It also lays down the conditions, duration,
rate, mode, etc. for maternity benefit. It also provides for medical bonus, nursing breaks,

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leave for miscarriage or illness arising out of pregnancy, etc. Some of the specific
sections in this act are:

- Section 3: Defines "maternity benefit" as payment at prescribed rates


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- Section 4: Provides for entitlement to maternity benefit
- Section 5: Provides for duration and rate of maternity benefit
- Section 6: Provides for notice and proof of pregnancy
- Section 7: Provides for payment and mode of maternity benefit
- Section 8: Provides for medical bonus
- Section 9: Provides for nursing breaks
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- Section 10: Provides for leave for miscarriage or illness arising out of
pregnancy
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Some of the case laws related to this act are:

- Municipal Corporation Of Delhi v. Female Workers (Muster Roll) (2000): This case
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dealt with the issue of whether women workers engaged on casual basis or muster roll
basis are entitled to maternity benefit
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9. Explain the meaning of 'authorized deduction from wages'


under Payment of Wages Act, 1936. What are the conditions
for deducting money from wages for 'damage or losses?
The Payment of Wages Act, 1936 is an act of the Indian Parliament that regulates the
payment of wages to certain classes of employed persons. The act aims to prevent the
exploitation of workers by ensuring timely and fair payment of wages.

Section 7 of the act defines 'authorized deductions' as deductions that are made from
the wages of an employed person in accordance with the provisions of the act or any
other law for the time being in force. The act specifies the purposes for which such
deductions can be made, such as fines, absence from duty, damage or loss of goods,
house accommodation, amenities and services, recovery of advances, income tax,
provident fund, etc.

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Section 7(2)(e) of the act states that deductions for damage or loss caused to the

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employer by the neglect or default of the employed person can be made only if:

- The employed person has been given an opportunity to show cause against such
deduction
- The total amount of such deduction does not exceed the amount of damage or loss

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caused
- The deduction does not exceed 75% of the wages payable in any wage period
- The deduction is made within six months from the date of occurrence of such damage
or loss
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The Supreme Court of India has interpreted these conditions in several cases and laid
down some principles to guide the employers and employees in this regard. Some of
these cases are:

- In Workmen v. Reptakos Brett & Co. Ltd. [(1998) 1 SCC 23], the court held that
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deductions for damage or loss caused by negligence or default must be based on a fair
and reasonable enquiry and not on mere suspicion or allegation.
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- In Workmen v. Indian Iron & Steel Co. Ltd. [(1973) 2 SCC 231], the court held that
deductions for damage or loss caused by theft or pilferage must be supported by clear
and cogent evidence and not on mere surmise or conjecture.
- In Workmen v. Management of Raptakos Brett & Co. Ltd. [(1969) 2 SCC 875], the
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court held that deductions for damage or loss caused by breakage or wastage must be
proportionate to the actual damage or loss and not arbitrary or excessive.
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Thus, 'authorized deduction from wages' under Payment of Wages Act, 1936 means
deductions that are lawful, reasonable and justified by the circumstances and evidence.
10. Discuss the nature of Employer's liability for compensation
under the Employees' Compensation.Act
Employer's liability for compensation under the Employees' Compensation Act, 1923,
is based on the principle of no-fault liability. This means that the employer is liable to pay
compensation to the employee for any personal injury caused by an accident arising out
of and in the course of employment, irrespective of any negligence or fault on the part of
the employer or the employee. The only exceptions to this rule are when the employee
has willfully disobeyed the employer's orders or rules, or when the injury is due to the

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employee's own serious and willful misconduct.

The amount of compensation payable depends on the nature and extent of the injury, the

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average monthly wages of the employee, and the age of the employee. The Act provides
a schedule of injuries and corresponding percentages of compensation. For example, if
an employee loses his sight in both eyes due to an accident, he is entitled to 50% of his
monthly wages multiplied by the relevant factor (which varies according to age). If an

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employee suffers a permanent total disablement, he is entitled to 60% of his monthly
wages multiplied by the relevant factor. If an employee suffers a permanent partial
disablement, he is entitled to a percentage of the compensation for permanent total
disablement, as specified in the schedule. If an employee suffers a temporary
disablement, he is entitled to 25% of his monthly wages for the period of disablement
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or five years, whichever is less.

The Act also specifies certain conditions and procedures for claiming and paying
compensation. The employee or his dependents must give notice of the accident to the
employer within 30 days, and make a claim for compensation within two years. The
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employer must deposit the compensation with the Commissioner for Employees'
Compensation within 30 days of receiving notice or within 30 days of due date,
whichever is earlier. The Commissioner has the power to adjudicate any disputes or
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questions arising under the Act, and his orders are enforceable as decrees of a civil
court.

The Act also provides some defenses and exemptions for the employer. The employer
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can reduce or avoid liability if he proves that the employee was not in his service at the
time of accident, or that the accident did not arise out of and in the course of
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employment, or that the injury did not result in any disablement or death. The employer
can also claim contribution from any other person who is liable for the same injury under
any other law. The Act does not apply to employees whose monthly wages exceed Rs.
21,000, or who are covered by any other scheme of social insurance.

The Act is based on the principles of social justice and welfare, and aims to provide
speedy and adequate relief to workers who suffer injuries due to accidents at work.
However, there are some limitations and challenges in its implementation, such as low
awareness among workers and employers, delays and corruption in adjudication and
payment, inadequate compensation rates and coverage, and lack of medical and
rehabilitation facilities.

Some of the case laws that have interpreted and applied the provisions of the Act are:

- Mallikarjun vs Divisional Railway Manager (2004): The Supreme Court held that
railway employees who are engaged in hazardous work are entitled to compensation
under the Act even if they are covered by another scheme of social insurance.
- Oriental Insurance Co. Ltd vs Mohan Devi (2008): The Supreme Court held that an
employee who dies due to heart attack while on duty is entitled to compensation under

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the Act as it amounts to an accident arising out of and in the course of employment.
- Deepal Girishbhai Soni vs United India Insurance Co. Ltd (2004): The Supreme

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Court held that an employee who suffers a mental injury due to harassment at work is
entitled to compensation under the Act as it amounts to a personal injury caused by an
accident.

Corporation. AK
11. Explain the composition, powers and functions of E.S.I.

The Employees' State Insurance (ESI) Corporation is a statutory body established under
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the ESI Act, 1948. The ESI Act provides for social security and medical benefits to
workers in factories and establishments covered by the Act. The ESI Corporation is
responsible for administering the ESI scheme and implementing its provisions.

The composition, powers and functions of the ESI Corporation are as follows:
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- Composition: The ESI Corporation consists of 38 members, representing the Central


Government, State Governments, employers, employees, medical profession and
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Parliament. The Director General of the ESI Corporation is the Chief Executive Officer
and ex-officio member of the Corporation. The Chairman and Vice-Chairman of the
Corporation are elected by the members from among themselves.
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- Powers: The ESI Corporation has the power to make regulations for the administration
of the ESI scheme, subject to the approval of the Central Government. The regulations
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may provide for matters such as contribution rates, benefits, eligibility conditions,
adjudication of disputes, medical care, inspection, penalties, etc. The ESI Corporation
also has the power to raise loans and borrow money, with the prior approval of the
Central Government, for carrying out its functions.

- Functions: The main functions of the ESI Corporation are:

- To establish and maintain hospitals, dispensaries and other medical facilities for
providing medical care to insured persons and their dependents.
- To pay cash benefits to insured persons in case of sickness, maternity, disablement
and death due to employment injury.

- To pay funeral expenses to the dependents of deceased insured persons.

- To promote measures for improving the health and welfare of insured persons and
their dependents.

- To undertake research and education on occupational health and safety.

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- To cooperate with other agencies and organizations engaged in similar activities.

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Some of the provisions and case laws related to the ESI Corporation are:

- Section 3 of the ESI Act provides for the constitution of the ESI Corporation and its
composition.

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- Section 4 of the ESI Act provides for the term of office and conditions of service of
members of the ESI Corporation.
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- Section 5 of the ESI Act provides for the election of Chairman and Vice-Chairman of
the ESI Corporation.

- Section 6 of the ESI Act provides for the meetings and quorum of the ESI Corporation.

- Section 7 of the ESI Act provides for the powers and duties of Director General and
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Financial Commissioner of the ESI Corporation.


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- Section 59A of the ESI Act empowers the Central Government to supersede the ESI
Corporation in certain circumstances.

- In Regional Director, Employees' State Insurance Corporation v. Francis De


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Costa [(1993) 2 SCC 405], the Supreme Court held that an employee who is covered by
the ESI scheme cannot claim compensation under any other law for any injury arising
out of or in course of his employment.
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- In Employees' State Insurance Corporation v. A.K. Abdul Samad [(1998) 4 SCC


23], the Supreme Court held that an employer who fails to pay contribution under the
ESI Act is liable to pay interest at 12% per annum from the date on which such
contribution becomes due till it is paid.
- In Employees' State Insurance Corporation v. R.K. Swamy [(1994) 1 SCC 445], the
Supreme Court held that an employee who is not covered by the definition of 'employee'
under Section 2(9) of the ESI Act cannot claim any benefit under the Act.

12. Briefly describe the statutory provisions ensuring health


and welfare of the workers in a factory.

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The health and welfare of the workers in a factory are ensured by various statutory
provisions under the Indian Labour Law. Some of the important provisions are:

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- The Factories Act, 1948: This Act regulates the working conditions, safety measures,
health and welfare facilities, working hours, leave and holidays, etc. for the workers
employed in factories. It also provides for the appointment of inspectors, penalties for
violations and remedies for workers. Some of the specific provisions for health and

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welfare are:

- Section 11: Cleanliness - The factory premises must be kept clean and free from
effluvia, dust and dirt. The floors, stairs, passages and walls must be cleaned at least
once a week. The disposal of wastes and effluents must be done in an effective manner.
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- Section 12: Ventilation and temperature - The factory must have adequate
ventilation and maintain a reasonable temperature for the workers. The ventilation must
be done by windows, fans, ducts or other means. The temperature must not exceed the
limits prescribed by the state government.
- Section 13: Dust and fume - The factory must prevent the inhalation of dust and
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fume by the workers. The dust and fume must be removed or diluted by exhaust
appliances or other effective methods. The state government may prescribe standards
for the concentration of dust and fume in the air.
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- Section 14: Artificial humidification - The factory must regulate the humidity of the
air by artificial means only in accordance with the standards prescribed by the state
government. The water used for humidification must be clean and purified. The state
government may appoint a certifying surgeon to examine and certify the water used for
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humidification.
- Section 15: Overcrowding - The factory must not allow overcrowding in any
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workroom. The number of workers in a workroom must not exceed the limit prescribed
by the state government. The limit is based on the cubic capacity of the workroom and
the nature of the work carried on.
- Section 16: Lighting - The factory must provide sufficient and suitable lighting,
natural or artificial, in every part of the factory. The lighting must not cause glare or strain
to the eyes of the workers. The state government may prescribe standards for lighting in
different parts of the factory.
- Section 17: Drinking water - The factory must provide adequate and wholesome
drinking water for all the workers. The drinking water must be conveniently situated and
accessible to all the workers. The drinking water points must be clearly marked as such
and separate from those used for washing or other purposes.
- Section 18: Latrines and urinals - The factory must provide sufficient latrines and
urinals for male and female workers separately. The latrines and urinals must be
conveniently situated, well ventilated, clean and maintained. The state government may
prescribe standards for latrines and urinals in factories.
- Section 19: Spittoons - The factory must provide sufficient spittoons in convenient
places for the use of the workers. The spittoons must be maintained in a clean and
hygienic condition. No person shall spit within the premises of the factory except in the
spittoons provided for that purpose.

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- Section 42: Washing facilities - The factory must provide adequate washing
facilities for all the workers. The washing facilities must be conveniently accessible and

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separate for male and female workers. The state government may prescribe standards
for washing facilities in factories.
- Section 43: Facilities for storing and drying clothing - The factory must provide
suitable facilities for storing and drying clothing not worn during working hours by
workers who change their clothing in the factory. The facilities must be separate for male

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and female workers.
- Section 44: Facilities for sitting - The factory must provide suitable arrangements
for sitting for all workers who are obliged to work in a standing position. The
arrangements must enable them to take advantage of any opportunities for rest which
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may occur in the course of their work.
- Section 45: First-aid appliances - The factory must provide and maintain a first-aid
box or cupboard equipped with the prescribed contents in every workroom where more
than fifty workers are ordinarily employed. There shall be one first-aid box or cupboard
for every one hundred fifty workers or part thereof. There shall also be a trained person
to administer first-aid to injured workers.
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- Section 46: Canteens - The state government may make rules requiring that in any
specified factory wherein more than two hundred fifty workers are ordinarily employed, a
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canteen or canteens shall be provided and maintained by


the occupier for the use of the workers. The rules may prescribe the standards for
construction, accommodation, furniture, equipment, foodstuffs, charges, management,
etc. of such canteens.
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- Section 47: Shelters, rest rooms and lunch rooms - The state government may
make rules requiring that in any specified factory wherein more than one hundred fifty
workers are ordinarily employed, adequate and suitable shelters or rest rooms and a
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suitable lunch room, with provision for drinking water, where workers can eat meals
brought by them, shall be provided and maintained by the occupier for the use of the
workers. The shelters, rest rooms and lunch rooms shall be sufficiently lighted and
ventilated and shall be maintained in a cool and clean condition.
- Section 48: Creches - The state government may make rules requiring that in any
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. The rooms shall be adequately lighted and ventilated, clean
and sanitary, and of sufficient size. The rooms shall also be equipped with suitable
furniture, toys, games, etc. and staffed by trained women attendants. The state
government may also prescribe standards for the facilities to be provided for the children
in such rooms.

- The Employees' State Insurance Act, 1948: This Act provides for the establishment
of an Employees' State Insurance Corporation to administer a scheme of social security
for the workers employed in factories and other establishments. The scheme covers
contingencies such as sickness, maternity, disablement, death due to employment injury,
medical care, etc. The scheme is funded by contributions from the employers and

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employees. Some of the specific provisions for health and welfare are:

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- Section 46: Benefits - The insured persons and their dependants are entitled to
various benefits under the scheme, such as:

- Sickness benefit: A periodical cash payment made to an insured person during the
period of certified sickness occurring in a benefit period when he requires medical

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treatment and attendance with abstention from work on medical grounds.
- Maternity benefit: A periodical cash payment made to an insured woman during
certain periods before and after confinement or miscarriage or adoption of a child.
- Disablement benefit: A periodical cash payment made to an insured person who
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suffers from temporary or permanent disablement as a result of an employment injury.
- Dependants' benefit: A periodical cash payment made to the dependants of an
insured person who dies as a result of an employment injury.
- Medical benefit: The medical treatment provided to an insured person or his
dependants at the expense of the Corporation.
- Funeral benefit: An amount paid to the person who incurs the expenditure on the
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funeral of a deceased insured person.


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- Section 56: Medical benefit council - The Corporation shall constitute a Medical
Benefit Council consisting of members representing the Corporation, the employers, the
employees, the medical profession and the Central Government. The Council shall
advise the Corporation on matters relating to the provision of medical treatment and
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attendance to insured persons and their dependants.

- The Employees' Provident Funds and Miscellaneous Provisions Act, 1952: This
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Act provides for the establishment of provident fund, pension fund and deposit-linked
insurance fund for the employees in factories and other establishments. The Act also
provides for the constitution of a Central Board of Trustees to administer these funds.
The funds are financed by contributions from the employers and employees. Some of
the specific provisions for health and welfare are:

- Section 6A: Employees' Pension Scheme - The Central Government may frame a
scheme to be called the Employees' Pension Scheme for providing superannuation
pension, retiring pension or permanent total disablement pension to the employees or
their dependants.
- Section 6C: Employees' Deposit-linked Insurance Scheme - The Central
Government may frame a scheme to be called the Employees' Deposit-linked Insurance
Scheme for providing life insurance benefits to the employees or their nominees or heirs.

- The Maternity Benefit Act, 1961: This Act regulates the employment of women in
certain establishments for certain periods before and after childbirth and provides for
maternity benefit and certain other benefits. Some of
the specific provisions for health and welfare are:

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- Section 5: Right to payment of maternity benefit - A woman who is employed in an

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establishment and who has worked therein for a period of not less than eighty days in
the twelve months immediately preceding the date of her expected delivery is entitled to
receive maternity benefit at the rate of her average daily wage for the period of her
actual absence immediately preceding and including the day of her delivery and for six
weeks following that day.

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- Section 6: Notice of claim for maternity benefit - A woman who is entitled to maternity
benefit under this Act may give notice in writing to her employer stating that she expects
to be confined within six weeks from
the date of giving such notice and that she claims maternity benefit or any other amount
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to which she may be entitled under this Act.
- Section 7: Payment of maternity benefit in case of death of a woman - If a woman
entitled to maternity benefit or any other amount under this Act dies before receiving
such maternity benefit or amount, or where
the employer is liable for maternity benefit under section 5A
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13. "Social security constitutes an important step towards the


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goal of a welfare state, by improving living and working


conditions and affording people protection against various
kinds of hazards". Comment. Discuss the various social
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security legislations in India aimed at attaining the goal of


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welfare state in India.


Social security is an important concept that aims to provide protection and assistance to
workers and their dependents in times of need, such as sickness, injury, unemployment,
old age, maternity, etc. Social security constitutes an important step towards the goal of
a welfare state, by improving living and working conditions and affording people
protection against various kinds of hazards. The Constitution of India, under Part IV
(Directive Principles of State Policy), lays down the obligation of the state to provide
social security to its citizens. Some of the relevant articles are:
- Article 38: The state shall strive to promote the welfare of the people by securing and
protecting as effectively as it may a social order in which justice, social, economic and
political, shall inform all the institutions of the national life.
- Article 39: The state shall, in particular, direct its policy towards securing that the
citizens, men and women equally, have the right to an adequate means of livelihood; that
the ownership and control of the material resources of the community are so distributed
as best to subserve the common good; that the operation of the economic system does
not result in the concentration of wealth and means of production to the common
detriment; that there is equal pay for equal work for both men and women; that the

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health and strength of workers, men and women, and the tender age of children are not
abused and that citizens are not forced by economic necessity to enter avocations

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unsuited to their age or strength; that children are given opportunities and facilities to
develop in a healthy manner and in conditions of freedom and dignity and that childhood
and youth are protected against exploitation and against moral and material
abandonment.
- Article 41: The state shall, within the limits of its economic capacity and development,

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make effective provision for securing the right to work, to education and to public
assistance in cases of unemployment, old age, sickness and disablement, and in other
cases of undeserved want.
- Article 42: The state shall make provision for securing just and humane conditions of
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work and for maternity relief.
- Article 43: The state shall endeavour to secure, by suitable legislation or economic
organisation or in any other way, to all workers agricultural, industrial or otherwise, work,
a living wage, conditions of work ensuring a decent standard of life and full enjoyment of
leisure and social and cultural opportunities.
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In order to fulfil these constitutional obligations, various legislations have been enacted
by the central and state governments to provide social security benefits to different
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categories of workers. Some of these legislations are:

- The Workmen's Compensation Act, 1923: This Act is the first planned step in the
field of social security in India. It provides compensation to workers for injuries suffered
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or diseases contracted during the course of employment. The compensation is based on


the extent of injury or loss of earning capacity. The Act also provides for payment of
compensation to dependents in case of death of a worker due to employment injury or
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occupational disease .
- The Employees' State Insurance Act, 1948: This Act created a fund to provide
medical care to employees and their families, cash benefits during sickness, maternity
and temporary or permanent disablement, funeral expenses and pension to dependents
in case of death due to employment injury or occupational disease. The fund is financed
by contributions from employers and employees. The Act covers factories and
establishments employing 10 or more persons .
- The Employees' Provident Funds and Miscellaneous Provisions Act, 1952: This
Act provides for compulsory provident fund, family pension and deposit-linked insurance
schemes for employees in factories and establishments employing 20 or more persons.
The schemes are administered by a statutory body called the Employees' Provident
Fund Organisation (EPFO). The provident fund scheme provides for accumulation of
savings by employees during their service period
and payment of lump sum amount at the time of retirement or resignation. The family
pension scheme provides monthly pension to widows/widowers and children of
deceased employees who were members of the provident fund scheme. The
deposit-linked insurance scheme provides an additional amount equal to the average

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balance in the provident fund account (subject to a maximum limit) to the nominee or
legal heir of a deceased employee who was a member of both the provident fund and

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family pension schemes .
- The Maternity Benefit Act, 1961: This Act provides for payment of maternity benefit to
women employees for a period of 26 weeks (including 8 weeks before delivery) at the
rate of full wages. It also provides for medical bonus, leave for miscarriage or illness
arising out

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of pregnancy or delivery, nursing breaks during working hours and prohibition of
dismissal or discrimination during maternity period .
- The Payment of Gratuity Act, 1972: This Act provides for payment of gratuity to
employees who have completed five years of continuous service in factories, mines,
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plantations, shops and establishments, railways, ports, etc. The gratuity is calculated at
the rate of 15 days' wages for every completed year of service or part thereof in excess
of six months, subject to a maximum limit. The gratuity is payable on termination of
service due to retirement, resignation, death or disablement .

These are some of the major social security legislations in India aimed at attaining the
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goal of welfare state in India. However, there are still many issues and challenges faced
by the social security system in India, such as:
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- Low coverage: The social security legislations cover only a small proportion of the
total workforce in India, mainly those employed in the organised sector. The majority of
the workers in the unorganised sector, such as agricultural labourers, domestic workers,
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street vendors, etc., are excluded from the benefits of these legislations. According to
the Periodic Labour Force Survey Annual Report 2021-2022, only 47% of all salaried
workers have social security benefits in India.
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- Inadequate benefits: The social security benefits provided by the legislations are often
inadequate to meet the needs of the workers and their dependents. The benefits are
based on low wage rates, outdated wage ceilings and arbitrary limits. The benefits are
also not indexed to inflation or linked to minimum wages. Moreover, the benefits are
often delayed or denied due to procedural complexities and administrative inefficiencies.
- Lack of coordination: There is a lack of coordination and integration among the
various social security legislations and schemes. There is no uniformity or consistency in
the definitions, eligibility criteria, contribution rates, benefit levels and procedures among
the different legislations and schemes. There is also no mechanism for portability or
transferability of benefits across different sectors or regions. This leads to duplication,
fragmentation and confusion in the social security system.
- Lack of awareness: There is a lack of awareness and information among the workers
and employers about their rights and obligations under the social security legislations
and schemes. Many workers are not aware of the benefits available to them or how to
claim them. Many employers are not aware of their liabilities or how to comply with them.
This results in low enrolment, evasion and non-compliance in the social security system.

These are some of the suggestions that can be made to improve the social

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security system in India:

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- Extend coverage: The social security legislations and schemes should be extended to
cover all workers in both the organised and unorganised sectors. The eligibility criteria
should be simplified and rationalised to include all categories of workers irrespective of
their nature, duration or location of work. The registration and enrolment process should
be made easy and accessible for both workers and employers. The use of technology,

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such as Aadhaar, mobile phones, etc., should be leveraged to facilitate identification,
verification and delivery of benefits.
- Enhance benefits: The social security benefits provided by the legislations and
schemes should be enhanced to meet the needs of the workers and their dependents.
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The benefits should be based on realistic wage rates, revised wage ceilings and
reasonable limits. The benefits should also be indexed to inflation or linked to minimum
wages. Moreover, the benefits should be paid promptly and efficiently without any delay
or denial.
- Improve coordination: There should be better coordination and integration among the
various social security legislations and schemes. There should be uniformity and
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consistency in the definitions, eligibility criteria, contribution rates,


benefit levels and procedures among the different legislations and schemes. There
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should also be a mechanism for portability or transferability of benefits across different


sectors or regions. This would reduce duplication, fragmentation and confusion in the
social security system.
- Increase awareness: There should be more awareness and information among the
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workers and employers about their rights and obligations under the social security
legislations and schemes. There should be regular dissemination of information through
various media, such as print, electronic, social media, etc., about the benefits available
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to them or how to claim them. There should also be training and education programmes
for both workers and employers on how to comply with them. This would increase
enrolment, compliance and utilisation in the social security system.

Conclusion

Social security is an essential component of a welfare state that aims to provide


protection and assistance to workers and their dependents in times of need. The
Constitution of India mandates the state to provide social security to its citizens. Various
legislations have been enacted by the central and state governments to provide social
security benefits to different categories of workers. However, there are many issues and
challenges faced by the social security system in India, such as low coverage,
inadequate benefits, lack of coordination and lack of awareness. These issues need to
be addressed by extending coverage, enhancing benefits, improving coordination and
increasing

14. Discuss the employment health and safety of workers

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relating to industrial hygiene, industrial health, industrial

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accidents, safeguards approvals, health, safety and welfare
measures of workers and also legislative protection for
children and young workers examining the important aspects

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of the relevant legislations relating to it.
Industrial hygiene, health and safety of workers are essential aspects of labour law that
aim to protect the well-being of employees and prevent occupational hazards. The
Indian Labour Law provides various provisions and case laws that regulate these
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aspects and ensure the enforcement of the rights and duties of both employers and
workers.

One of the main legislations that deals with industrial hygiene, health and safety of
workers is the Factories Act, 1948. This Act applies to any establishment where 10 or
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more workers are employed with the aid of power or 20 or more workers are employed
without the aid of power. The Act lays down various provisions regarding the cleanliness,
ventilation, lighting, drinking water, latrines, urinals, spittoons, disposal of wastes, dust
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and fumes, artificial humidification, overcrowding, temperature, ventilation, etc. of the


factory premises. The Act also prescribes the duties of the occupier and manager of the
factory to ensure the health and safety of the workers. The Act also empowers the state
governments to make rules for the enforcement of these provisions and appoint
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inspectors to inspect and examine the factories.


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Another important legislation that relates to industrial hygiene, health and safety of
workers is the Mines Act, 1952. This Act applies to any mine where any person is
employed for extracting any mineral from the earth or doing any other operation
connected therewith. The Act provides for various provisions regarding the ventilation,
dust control, lighting, drinking water, sanitary conveniences, medical facilities, first aid,
rescue and recovery operations, etc. of the mines. The Act also imposes duties on the
owner, agent and manager of the mine to ensure the health and safety of the workers.
The Act also empowers the central government to make rules for the enforcement of
these provisions and appoint inspectors to inspect and examine the mines.
A third legislation that pertains to industrial hygiene, health and safety of workers is the
Employees' State Insurance Act, 1948. This Act applies to any establishment where
10 or more persons are employed for wages in any manufacturing process or any other
activity notified by the central government. The Act establishes a scheme of social
security for the workers that covers medical benefits, sickness benefits, maternity
benefits, disablement benefits, dependants' benefits and funeral expenses in case of any
injury or disease arising out of or in course of employment. The Act also creates an
Employees' State Insurance Corporation (ESIC) that administers the scheme and
collects contributions from both employers and employees. The Act also provides for

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medical boards, insurance courts and appellate tribunals to adjudicate disputes arising
under the scheme.

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The employment health and safety of workers relating to industrial hygiene, health and
safety are also influenced by various other legislations such as the Workmen's
Compensation Act, 1923; the Industrial Disputes Act, 1947; the Maternity Benefit
Act, 1961; the Contract Labour (Regulation and Abolition) Act, 1970; the Child

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Labour (Prohibition and Regulation) Act, 1986; etc. These legislations provide for
various rights and remedies for the workers in case of any injury or illness caused by
their employment or working conditions.
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The legislative protection for children and young workers is also an important aspect of
labour law that aims to prevent their exploitation and abuse in industries. The Indian
Labour Law prohibits the employment of children below 14 years of age in any factory or
mine or any other hazardous occupation or process. The Child Labour (Prohibition
and Regulation) Act, 1986 defines a child as a person who has not completed 14 years
of age and a young person as a person who has completed 14 years but has not
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completed 18 years of age. The Act prohibits the employment of children in certain
occupations and processes specified in Part A and Part B of its Schedule respectively.
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The Act also regulates the conditions of work of children in other occupations and
processes not prohibited by it. The Act provides for penalties for contravention of its
provisions and empowers the appropriate government to make rules for its
implementation.
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The legislative protection for children and young workers is also provided by various
other legislations such as the Factories Act, 1948; the Mines Act, 1952; the Minimum
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Wages Act, 1948; etc. These legislations prescribe certain restrictions on the hours of
work, overtime work, night work, leave, holidays, etc. for children and young workers
employed in factories or mines or other establishments covered by them.

Thus, it can be concluded that the Indian Labour Law has a comprehensive framework
for ensuring the employment health and safety of workers relating to industrial hygiene,
health and safety as well as legislative protection for children and young workers.
However, there are still some challenges and gaps in its implementation and
enforcement that need to be addressed by effective measures.

15. There are three concepts of wages, namely, Minimum


Wage, Pair Wage and living Wage". Explain. What are
Maternity Benefits? Explain.

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The concept of wages is central to the labour law in India, as it determines the standard
of living and social security of the workers. According to the Indian Labour Conference

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(1948), there are three concepts of wages, namely, minimum wage, fair wage and living
wage.

Minimum wage is the lowest wage that an employer is legally obliged to pay to the
workers for their work. It is meant to ensure the basic subsistence and protection of the

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workers from exploitation. The Minimum Wages Act, 1948 is the main legislation that
regulates the fixation and revision of minimum wages in India. The Act empowers the
Central and State Governments to fix minimum wages for different categories of workers
employed in various scheduled employments. The Act also provides for the constitution
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of advisory boards and committees, payment of minimum wages, fixation of hours of
work, maintenance of registers and records, claims and penalties.

Fair wage is a higher level of wage than the minimum wage, which takes into account
the productivity of labour, prevailing wage rates, capacity of the industry to pay and other
relevant factors. It is meant to ensure a reasonable standard of living and reward for
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efficiency. The concept of fair wage was endorsed by the 15th Indian Labour
Conference (1957), which laid down certain criteria for its determination. The criteria
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include the level of national income and its distribution, the level of living of workers in
other industries, social security benefits, cost of living and other factors affecting wage
fixation.
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Living wage is the highest level of wage among the three concepts, which ensures not
only the bare physical subsistence but also a decent standard of living that includes
education, health, social security and other amenities. It is based on the principle that
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workers should receive a share in the national income according to their contribution.
The concept of living wage was enshrined in Article 43 of the Constitution of India,
which states that "The State shall endeavour to secure, by suitable legislation or
economic organisation or in any other way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent standard of life and
full enjoyment of leisure and social and cultural opportunities."
Maternity benefits are another important aspect of labour law in India, which aim to
protect the health and well-being of women workers during pregnancy and childbirth.
Maternity benefits include paid leave, medical care, cash incentives and other facilities
for pregnant women and nursing mothers. The Maternity Benefit Act, 1961 is the main
legislation that governs maternity benefits in India. The Act applies to women workers
employed in factories, mines, plantations, shops and establishments and other
establishments notified by the Central or State Governments. The Act provides for 26
weeks of paid maternity leave (of which not more than eight weeks can be taken before
the expected date of delivery), six weeks of additional leave in case of miscarriage or
medical termination of pregnancy, one month of leave in case of illness arising out of

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pregnancy or delivery, two nursing breaks per day until the child attains 15 months of
age, medical bonus of Rs. 3500 if no pre-natal or post-natal care is provided by the

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employer, protection from dismissal or discrimination during maternity leave and an
option to work from home after maternity leave.

The provisions and case laws related to wages and maternity benefits are some of the
important aspects of labour law in India that reflect the constitutional mandate and policy

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objectives of ensuring social justice and welfare for the workers.
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