LAWS RELATING TO INDUSTRIAL

RELATIONS
 Factories Act
 Maternity Benefit Act
 Payment of Bonus Act
 ESI Act
 Provident Fund Act
Factories Act, 1948
The Factories Act, 1948 consolidating and amending the law

relating to labour in factories, was passed by the Constituent

Assembly on August 28, 1948. The Act received the assent of

Governor General of India on 23 September 1948 and came into

force on April 1, 1949.

The Factories Act, 1948 (the Factories Act) lays down

provisions for the health, safety, welfare and service conditions of

workmen working in factories. It contains provisions for working

hours of adults, employment of young persons, leaves, overtime,

etc.
Factories Act, 1948
It applies to all factories employing more than 10 people

and working with the aid of power, or employing 20 people

and working without the aid of power.

It covers all workers employed in the factory premises or

precincts directly or through an agency including a

contractor, involved in any manufacture. Some provisions of

the Act may vary according to the nature of work of the

establishment.
Objective of Factories Act ,1948
The main objectives of the Indian Factories Act, 1948 are to

regulate the working conditions in factories, to regulate health,

safety welfare, and annual leave and enact special provision in

respect of young persons, women and children who work in the

factories.
1.Working Hours:

2.Health:

3. Safety:

4. Welfare:

5. Penalties:
PROVISIONS REGARDING HEALTH:
• Cleanliness (sec.11)
• Disposal of Wastes & Effluents (sec.12)
• Ventilations & Temperature (sec.13)
• Dust & Fumes (sec.14)
• Artificial Humidification (sec. 15)
• Overcrowding (sec.16)
• Lighting (sec.17)
• Drinking Water (sec.18)
• Latrines & Urinals (sec.19)
• Spittoons (sec.20)
PROVISIONS REGARDING SAFETY:
• Fencing of Machinery (sec.21)

• Work on or near Machinery in motion (sec.22)

• Employment of Young Persons on Dangerous Machines (sec. 23)

• Striking Gear and Devices for cutting off power (sec.24)

• Self Acting Machines (sec.25)

• Casing of New Machinery (sec.26)

• Prohibition of Employment of Women & Children near Cotton

openers (sec. 27)

• Hoists, lifts, Lifting Machines and others (sec.28,29)

• Revolving Machinery (sec. 30)

• Pressure Plant (sec.31)

PROVISIONS REGARDING SAFETY:
• Floors, Stairs & Means or Access (sec.32)

• Pits, Sumps, Opening in Floors and others (sec.33)

• Excessive Weights (sec.34)

• Protection of Eyesprecautions against Dangerous Fumes, Gases & others

(sec.35,36)

• Precautions Regarding use of portable electric light Explosive or Inflammable

Dust, Gas (sec.36A,37)

• Precautions in case of fire (sec.38)

• Specifications of Defective Parts or Tests of Stability (sec.39)

• Safety of Buildings and machines (sec.40,40A)

• Safety officers (sec. 40B)

PROVISIONS REGARDING WELFARE
OF WORKERS
• Washing Facilities (sec.42)

• Facilities for Storing & Drying clothing (sec.43)

• Facilities for Sitting (sec.44)

• First Aid facilities (sec.45)

• Canteens (sec.46)

• Shelters, Rest Rooms & Lunch Rooms (sec.47)

• Creches (sec.48)

• Welfare Officers (sec.49)

Maternity Benefit Act 2017
The Maternity Benefit (Amendment) Act 2017, passed by the
Rajya Sabha in August 2016, has also been passed by the Lok
Sabha in March 2017.
Under the new Law, maternity leave is raised from current 12
weeks to 26 weeks. The prenatal leave is also extended from six to
eight weeks. However, a woman with already two or more children
is entitled to 12 weeks’ maternity leave. The prenatal leave in this
case remains six weeks.
The Act also provides for adoption leave of 12 weeks for a
woman who adopts a child under the age of three months.
Maternity Benefit Act 2017
A commissioning mother is also entitled to a 12-week leave
from the date the child is handed over to her. A commissioning
mother is defined as “biological mother who uses her egg to create
an embryo implanted in any other woman” (the woman who gives
birth to the child is called host or surrogate mother). 
The Act further requires an employer to inform a woman
worker of her rights under the Act at the time of her appointment.
The information must be given in writing and in electronic form
(email).
Female civil servants are entitled to maternity leave for a period of
180 days for their first two live born children.
Maternity Benefit Act 2017
According to the Maternity Benefit Act female workers are

entitled to a maximum of 12 weeks (84 days) of maternity leave.

Out of these 12 weeks, six weeks leave is post-natal leave. In case of

miscarriage or medical termination of pregnancy, a worker is

entitled to six weeks of paid maternity leave. Employees are also

entitled to one additional month of paid leave in case of

complications arising due to pregnancy, delivery, premature birth,

miscarriage, medical termination or a tubectomy operation (two

weeks in this case).

Cash Benefits
84 Days Leave with pay before/after delivery.

A medical bonus of Rs. 1,000/-

Take the pay for 6 weeks after/before child birth within 48 hrs

of request

An additional leave with pay up to one month [Proof of illness]

In case of miscarriage Six weeks leave with average pay.

Tubectomy operation : Leave with wages @ of maternity

benefit for a period of 2 weeks.

Non Cash Benefits
 Light work for 10 weeks (6 weeks plus 1 month) before
delivery.
 2 Nursing breaks of 15 Minutes until the child is 15
months old.
 No discharge or dismissal while on maternity leave.
 No charge to her disadvantage in any conditions of her
employment while on maternity leave.
 Pregnant women discharged or dismissed may still claim
maternity benefit from employer.
Payment of Bonus Act1965
The Payment of Bonus Act, 1965 provides for the payment
of bonus to persons employed in certain establishments,
employing 20 or more persons, on the basis of profits or on the
basis of production or productivity and matters connected there
with.
The minimum bonus of 8.33% is payable by every industry
and establishment under section 10 of the Act. The maximum
bonus including productivity linked bonus that can be paid in
any accounting year shall not exceed 20% of the salary/wage of
an employee under the section 31 A of the Act.
Calculation for Bonus Payable
If the gross earning of your employees is below Rs. 21,000 employers are
liable to pay bonus. Calculation of bonus will be as follows:

If Salary is equal to or less than Rs. 7000/- then the bonus is calculated on
the actual amount by using the formula: Bonus = Salary x 8.33/100
If Salary is more than Rs. 7,000/- then the bonus is calculated on Rs.
7,000/- by using the formula: Bonus = 7,000 x 8.33/100 
Note: Salary means Basic Salary + Dearness Allowance
Details of amendments to the Payment
of Bonus Act, 1965:
Year Of Eligibility Limit
Sl.No Amendment (Rs. Per Month) Calculation Ceiling (Rs. Per Month)
1. 1965 Rs. 1600 Rs.750

2. 1985 Rs.2500 Rs. 1600

3. 1995 Rs. 3500 Rs. 2500

4. 2007 Rs. 10000 Rs. 3500

5. 2015 Rs. 21000 Rs. 7000 Or the minimum wage for

scheduled employment, as fixed by
the appropriate Government,
whichever is higher.

The last amendment of 2015 was notified on 1st Jan., 2016

and is effective from 1st April, 2014.
 The Payment of Bonus Act does not apply to
the following sections of employees:
 The employees of Life Insurance company
 Seamen defined under clause 42 of the merchant shipping act 1958.
 Employees who registered or listed under the dock workers Act 1948
and employed by the registered or listed employers.
 The employees of any industry controlled by Central or State
Government.
 Employees from Indian red cross society or education institutions,
institutions not for profit.
 Employees employed by the contractor on building operations
 Reserve Bank Of India(RBI) employees
 Employees of any financial corporation under Section 3 or Section 3a
of the State Financial Corporation Act (SFC) 1951
 Employees of IFCI, Deposit Insurance Corporation, agriculture
Refinance Corporation.
 Any financial institution is an establishment in public sector which
Central Government notifies.
 The employees of Inland Water Transport Establishment
 THE EMPLOYEES’ STATE INSURANCE
ACT, 1948
The Employees’ State Insurance Act, 1948 is one of the most important 
laws that provide social security. It contains six kinds of ESI benefits that
injured employees can avail. All of these benefits must arise in the course
of employment in order to enable workers to access them.
Section 46 of the Act describes all benefits that an injured employee
can avail. It is important to note that a worker can avail these benefits in
the course of employment only.
For example, if a worker suffers an injury, this injury must be an
employment injury only.
Section 2(8) says that an employment injury is a personal injury that an
employee suffers. Such injury must be the result of an accident or
occupational disease that arises out of employment.
The following are some ESI benefits that
employees can avail under the ESI Act
Medical benefit
Sickness benefit
Maternity benefit
Dependants benefits
Disablement benefits
Other benefits
Funeral expenses: 
Vocational/physical rehabilitation: 
Old age medical care: 
Provident Fund Act
The Employees Provident Fund Act, 1952 had passed with

a view to making some provisions for the future of the

employees after her/his retirement or for her/his dependants

in case of early death & inculcating the habit of saving among

the workers. This Act was framed under section 5 of the Act,

which came into force 1st November 1952.

The employee’s provident fund scheme applies to all

factories and other established to which the Act applies or is

applied under SEC.1(3), 1(4) and SEC. 3

Calculation of Provident Fund
• 12% contribution by the employee is directly transferred to his

Provident Fund A/c

• 12% is contributed by the employer out of which 8.33% is credited

to Employee Pension Fund and the balance 3.67% is transferred to

PF A/c of the employee 1.10% Administration charges on total

wages are payable by the employer 0.50% EDLI calculated on total

EDLI slab (Rs. 6500) wages and payable by the employer towards

EDLI fund ,0.01% EDLI Administration charges calculated on total

EDLI slab wages are payable by the employer(Employees Deposit

Linked Insurance Scheme)

 Benefits Provident Fund Act
 Employees can take advances / withdraw the PF in case of retirement,
medical care, housing, family obligation, education of children &
financing of life Insurance Polices
 Upto 90% of the PF amount can be withdrawn at the age of 54 years
or before one year of actual retirement
 PF amount of the deceased member is payable to nominees / legal
heirs
 Equal contribution by the employer
 present interest rate @ 8.5%
 PF A/c can be transferred if any member changes from one
establishment to other where the PF Scheme is applicable
THANK
YOU