UNIT 3 -

INDUSTRIAL LAW
An overview of Factories Act 1948 –
Payment of Wages Act 1936 – Trade unions
Act 1926 – Industrial Disputes Act 1947
FACTORIES ACT 1948
 The Factories Act, is a social legislation which has been enacted
for occupational safety, health and welfare of workers at work
places.

 Applicability: It applies to factories covered under the Factories

Act, 1948.

Objectives
The Act has been enacted primarily with the object of protecting workers
employed in factories against industrial and occupational hazards.

For that purpose, it seeks to impose upon the owner or the occupier
certain obligations to protect the workers and to secure for them
employment in conditions conductive to their health and safety. 
DEFINITIONS
 The term “Factory” under Section 2(m) of the act means :
 Any premises in which 10 or more workers are employed
and are engaged in manufacturing process being carried
out with the aid of power or
 Any premises in which 20 or more workers are employed
in manufacturing process being carried out without the aid
of power

 The term “Power” under Section 2(g) of the act means not
only electrical energy but also any other form of energy,
which is mechanically transmitted, but is not generated by
human or animal energy
The term “Manufacturing Process” under Section
2(K) of the act means :
 Making, altering, repairing, finishing, packing, oiling,
washing, cleaning, breaking up, demolishing or otherwise
treating or adapting any article or substance with a view to its
use, sale, transport, delivery or disposal
WORKER

The term “Worker” under Section 2(I) of

the act means a person employed (Directly or
through any agency including a contractor),
with or without the knowledge of principal
employer, whether for remuneration or not
in any manufacturing or not in manufacturing
process, but does not include any member of
the armed forces of the Union
Adult Sec 2 (a) : An adult means a person who
has completed his 18th year of age

Calendar Year Sec 2 (bb): It means the period

of 12 months beginning with the 1st day of
January in any year
Day Sec 2 (e); It means a period of 24 hours beginning
at midnights

Week Sec 2 (f) : It means a period of 7 days.

The term “Occupier” under Section 2(n) of the act

means the person who has ultimate control over the
affairs of the factory
FACTORY INSPECTOR
 As per Section 9, Inspector appointed under
this Act can any time enter the factory
 To carry out duties as laid down in the act
 To ensure that statutory provisions and
rules framed are carried out properly
OBLIGATIONS OF WORKER
o Under Section 111, various obligations of a worker are:

o A worker shall not interfere with or misuse any appliance or

other thing provided for the purpose of securing the health,
safety or welfare of the workers.
o A worker shall not willfully and without reasonable cause do
anything likely to endanger himself or others
o A worker shall not willfully neglect to make use of any
appliance or other thing provided for the purpose of securing
the health or safety of the workers.

o On contravention of above provisions, the worker shall be

punishable with imprisonment upto 3 months, or with fine upto
Rs. 100 or with both
OBLIGATIONS OF OCCUPIER
 Obtain government approval regarding location, plan and
construction of the factory an also license and registration
certificate for operating the factory
 Implement all provisions concerning health, safety and
welfare
 Send a detailed written notice 15 days in advance to Chief
Inspector before occupying any premises as a factory.
 Comply all statutory requirements pertaining to hours of
work, leave with wages, weekly holidays and extra wages for
overtime
 Display notice, maintain registers and records and submit
returns as required under the Act
 Report fatal and other accidents, and occupational disease
contracted by any workman, to the government or specified
authority
HEALTH
 Cleanliness
 Disposal of wastes and effluents
 Ventilation and temperature
 Dust and fume
 Artificial humidification
 Overcrowding
 Lighting
 Drinking water
 Latrines and urinals
 Spittoons
SAFETY
 Fencing of machinery
 Work on or near machinery in motion
 Employment of young persons on dangerous
machines.
 Striking gear and devices for cutting off power
 Self-acting machines
 Casing of new machinery
 Prohibition of employment of women and children
near cotton-openers
 Hoists and lifts
 Lifting machines, chains, ropes and lifting tackles
 Revolving machinery
 Pressure plant
WELFARE
 Washing facilities
 Facilities for storing and drying clothing
 Facilities for sitting
 First-aid appliances
 Canteens
 Shelters, rest rooms and lunch rooms
 Creches
 Welfare officers
WORKING HOURS FOR ADULTS
 Weekly hours
 Compensatory holidays
 Daily hours
 Intervals for rest
 Spread over
 Night shifts
 Prohibition of overlapping shifts
 Extra wages for overtime
 Restriction on double employment
 Notice of periods of work for adults
 Register of adult workers
 Hours of work to correspond with notice under section 61 and
register under section 62.
 Power to make exempting rules
 Power to make exempting orders
 Further restrictions on employment of women
PAYMENT OF WAGES ACT , 1936

15
Wage includes any remuneration:-
 Payable under any award or settlement
between the parties or order of a Court
 Over time work or holiday or any leave
period
 Any additional remuneration under the terms
of employment.
 Wage does not includes any bonus, pension
fund or provident fund, travelling allowance
and any gratuity.
FACTORS THAT INFLUENCE
WAGE LEVELS (WAGE MIX)
 Compensation policy of Organization
 Worth of the Job
 Employers Ability to pay
 Legal Requirements
 Collective Bargaining
 Cost of Living
 Area Wage Rate
 Conditions of Labour Market
ANNUAL LEAVE FOR WAGES
 Annual leave with wages
 Wages during leave period
 Payment in advance in certain cases
 Mode of recovery of unpaid wages
 Power to make rules
 Power to exempt factories

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 PERMISSIBLE OR AUTHORIZED DEDUCTIONS UNDER THE PAYMENT OF WAGES ACT

 Fines
 Deduction for Absence from Duty
 Deduction for Damage
 Deduction for House – Accommodation
 Deduction for other amenities and services
 Deduction for recovery for advances
 Deduction for recovery of loans – Welfare fund – house building
 Deduction for Income –Tax
 Deduction for under order of court of authority
 Deduction in respect of provident Fund
 Deduction for Payment to Co-Operative societies
 Deduction for Payment to a scheme of insurance of a post office
 Deduction for Payment of life Insurance premium
 Deduction for the purchase of Government securities
 Deduction for payment of contribution to certain funds
 Deduction for payment of contribution to certain fees
Trade Unions Act 1926
 DEFINITION
 According to Lester, “A trade union is an
association of employees designed, primarily
to maintain or improve the condition of
employment of its members”
 According to Webbs “A trade union is a
continuous association of wage earners for
the purpose of maintaining and improving
the conditions of their working lives”
Definitions
Appropriate Government: Sec 2. In relation
to trade unions whose objects are not
confined to one state the appropriate
government means the central government.
In relation to other trade unions, the
appropriate government means the State
Government
 Executive: Sec 2 () Executive means the
body, by whatever name called, to which the
management of the affairs of a trade union is
entrusted.
 Trade Disputes

It means any dispute

 Between employers and workmen
 Between workmen and workmen
 Between employers and employers
REGISTRATION OF TRADE UNION
 Any 7 or more members of a trade union
may, by subscribing their names to the rules
of the trade union and by otherwise
complying with the provisions of the act with
respect to registration, apply for its
registration.
WHO MAY BECOME MEMBERS
 Any person who has attained the age of 18
years may be member of a registered trade
union.
RULES OF TRADE UNION
 The name of the trade union
 The whole of its objects
 The whole of the purposes for which the
general funds of the trade union shall be
applicable under sec15
 Maintenance of a list of the members
 The safe custody of the funds of the trade
union, and annual audit of the accounts
thereof
 The manner in which the trade union may be
dissolved
FEATURES OF TRADE UNION
 Voluntary Association
 Community of Interest
 Having Authority Flow from the members
 Dealing with collective actions
 Acting as an intermediary
 Sub System
OBJECTIVES OF TRADE UNION
 Providing income security
 Preserving physical security
 Providing emotional security
 Maintaining Job Security
 Providing Social security
 Procuring Political Powers
 Fostering Industrial Democracy and Equity
RIGHTS AND PRIVILEGES OF
REGISTERED TRADE UNION
 Body corporate
 Separate fund for political purposes
 Immunity from punishment for criminal
conspiracy
 Immunity from civil suits
 Enforceability of agreements
 Right to inspect the books of trade union
DUTIES AND LIABILITIES OF A
REGISTERED TRADE UNION
 Change of registered office
 Objects on which general funds may be spent
 Constitution of a fund for political purposes
 Proportion of officers to be connected with
the industry
 Returns
ADVANTAGES OF TRADE UNION
 Protect workers
 Create spirit of self reliance and self respect
among workers
 Facilitates negotiation between worker and
employers
 Maintenance of wages at a uniform level
 Helps to negotiate productivity deals
DISADVANTAGES OF TRADE
UNIONS
 Misguidance
 High cost and low productivity
 Coercing workers
 Unnecessary inducement of workers
 Insolvency
PROBLEMS OF TRADE UNION
 Outside political leadership
 Multiple unions
 Union rivalry
 Poor financial position
 Victimization
 Small size of union membership
FUNCTIONS OF TRADE UNION
 Militant functions
 Fraternal functions (Group functions)
 Political functions
 Social functions
REASONS FOR EMPLOYEES JOIN
IN TRADE UNION
 Greater Bargaining power
 Minimize Discrimination
 Sense of Security
 Sense of Participation
 Sense of Belongingness
 Platform for self expression
 Betterment of Relationships
DISSOLUTION OF A TRADE
UNION
 When a trade union is dissolved, notice of
the dissolution signed by 7 members and by
the secretary of the trade union shall be sent
to the registrar within 14 days of the
dissolution
 Industrial Disputes Act 1947
DEFINITION
 An industrial dispute means any dispute or
difference between employers and
employers or between employers and
workmen or between workmen and
workmen, which is connected with the
employment or non employment or the terms
of employment or with the condition of
labour of any person
FORMS OF DISPUTES
1.Strikes

Definition
“Strike means a cessation of work by a body of
persons employed in any industry acting in
combination or a concerted refusal under a
common understanding of any number of
persons who are or have been so employed to
continue to work or to accept employment”
FORMS OF STRIKES
 Stay in strike
 Go slow strike
 Hunger Strike
 Wildcat strike – unofficial strike
2. Lockout
Temporary closing of a place of employment or
the suspension of work

3. Gherao
Gherao means encirclement of the manager
to criminally intimidate him to accept the
demands of the workers.
CAUSES OF DISPUTES
 Economic Causes
 Psychological causes
 Organizational causes
 Physical causes
FORUM UNDER THE INDUSTRIAL
DISPUTES ACT
 For Settlement – Grievance, Settlement
authority, Works Committee, Conciliation
officer, court of enquiry( Labour court),
board of conciliation,
 For Arbitration
 For Adjudication
 Thank you