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GTI Greentech Industries (India) Pvt. Ltd.

Applicability of Industrial
Laws
పారిశ్రామిక చట్టా ల అన్వయం
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Applicability of Industrial Laws

What is an Industry:
The process of converting the raw material into goods called Industry.

What is Law:
The system of rules which a particularly applicable for an Industry.

Importance :
Industry is combination of Legal and Commercial activities.
Both the activities are just opposite in Nature.
To ensure a path way to survive both Legal and Commercial activities
the Acts are made
Being working employees of industry we need to understand both the
activities to have confident inputs in the company.
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Types of laws

1.Protective
2. Regulative
3.Social Security
4.Welfare
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Types of laws

Regulative : Social Security:

Protective: Regulate the relationship Intend to provide social
To protect minimum between employer and security benefits
labour standards employee • Workmen Compensation
and improve • Trade union Act 1926 Act 1923
working conditions • Industrial Disputes Act • Employee State Insurance
• Factories Act 1948 1947 Act 1948
• Payment of wages • Industrial Employment • The Employee Provident
Act 1936 Act 1946 fund & miscellaneous
• Child Labour Act provisions Act 1952
1986 • Maternity Act 1961
• Contract Labour • The payment of Gratuity
Act 1970 Act 1972

Welfare:
Aims to provide the welfare of the employees
• Labour welfare fund Act 1976
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Factories Act 1948

Occupier:
The word occupier means a person who occupies the
factory either by himself or his agent. The ultimate
controlling power own by him.
Adult:
Adult means a person who has completed his 18 year of
age
Adolescent :
A person who has completed his 15th year age and not
completed his 18th year age
Child:
Means a person who has not completed his 15th year of
age
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Factories Act 1948

Hazardous Process
Hazardous process means any process or activity in
relation to industry specified in
the first schedule where unless special care
taken ,raw material used therein or the
intermediate or finished products ,waste or effluents .
There would be
(i) Cause material impairment to the health of the
persons engaged in or connected where with, or
(ii) Result in the pollution in the general environment.
Young person
Young person means who is either child or an
adolescent.
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Factories Act 1948

Manufacturing process
(i)Making altering ornamenting finishing packing oiling
washing cleaning braking up demolishing sale
transport delivery or disposal
(ii)Pumping oil water sewage
(iii) Generating transforming transmitting power
(iv) Composing types of printing by letter press
lithography book binding.
(v) Constructing reconstructing repairing refitting fin-
ishing or breaking
up ships or vessels
(vi) Preserving or storing any article in cold storage
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Factories Act 1948

Worker means a person [employed, directly or by or

through any agency (including a contractor) with or
without the knowledge of the principal employer,
whether for
remuneration or not], in any manufacturing process, or
in cleaning any part of the
machinery or premises used for a manufacturing
process, or in any other kind of
work incidental to, or connected with, the
manufacturing process, or the subject of
the manufacturing process [but does not include any
member of the armed forces of
the Union]
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Factories Act 1948

Chapter III-Health Chapter IV Safety Chapter V WELFARE

• Cleanliness  Fencing of Machinery In every factory shall
• Disposal of waste and  Dangerous part of provide
effluents machinery • Washing facilities
• Ventilation and  Work on or near • Storing and drying
Temperature machinery in motion facility
• Dust and Fumes  Self Acting machine • Sitting facilities
•  Hoist and Lifts, lifting • First aid appliances
Over Crowding
• • Canteen
Lighting machines chains ropes etc.
• • Shelter rest rooms
Drinking water Lifting tackle
• spittoons.  Floors and stairs and lunch rooms
•  Pits, Sumps Opening in floor • Creche
Latrines and urinals
• Welfare officer
etc.:
 Excessive Weights
 Protection of Eyes
 Dangerous gas and fumes
 Safety Officer: sec 40 B
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OPERATIONS IN FOUNDRIES

Point9. Work near cupola and furnaces; No person

shall carry out any work within a distance of 4
meters from a vertical line passing through the
delivery and o any spout of cupols or furnace.

All other specifications clearly mentioned

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Payment of wages Act 1936

An Act regulate the payment wages and period of wages;

• Responsibility Payment of wages.
• Fixation of wage period
• Time of payment of wages
• Deduction for absence
• Deduction for damages
• Deduction for service rendered
• Deduction for recovery of advance
• Deduction for recovery of loans
• Payment of undisbursed wages in case of death of em-
ployed person
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Child Labour Act 1986

The Act guides that the child Labor working

in the establishment.
Prohibition children in certain occupation
and process
• Hour and period of work
• Weekly Holiday
• Health safety
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Contract Labour Act 1970

The Object of the Contract Labor Regulation and Abolition)

Act, 1970 is to prevent exploitation of contract labor and also
to introduce better conditions of work.
A workman is deemed to be employed as Contract Labor
when he is hired in
connection with the work of an establishment by or through a
Contractor.
• Registration of establishment employing Contract Labor
• Licensing of Contractor
• Welfare and Health of Contactor
• Penalties and procedure
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Trade union Act 1926

An organized association of workers in a trade, group of

trades, or profession, formed to protect and further their
rights and interests.

• Registration of trade union

• Right and liabilities of trade union
• Penalties and procedure
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Industrial Disputes Act 1947

A dispute between employee and employee or employee

and employer or
employer or agency.
• Authorities under this act
• Notice of change
• Reference of dispute board or court or tribunal
• Stakes and Lockouts
• Lay off and Retrenchment
• Unfair labor practices
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Industrial Employment Act 1946

THE INDUSTRIAL EMPLOYMENT (Standing Orders) Act,

1946. ... It applies to every industrial establishment wherein
100 (reduced to 50 by the Central Government in respect of
the establishments for which it is the Appropriate Govern-
ment)
or more workmen are employed.
• Submission of draft of standing orders
• Condition for certification of standing orders
• Certification of standing orders
• Date of operation of standing orders
• Register of standing orders
• Duration and modification of standing orders
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Employee Compensation Act 1923

The Workmen's Compensation Act, 1923 provides for pay-

ment of compensation to workmen and their dependents in
case of injury and accident (including certain occupational
disease) arising out of and in the course of employment and
resulting
in disablement or death.
• Employer liability for compensation
• Amount of Compensation
• Method of calculation wages
• Half monthly payment
• Distribution of compensation

When ESI is applicable this act will not be in force

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Employee State Insurance Act 1948

The promulgation of Employees' State Insurance Act,

1948 envisaged an integrated need based social insur-
ance scheme that would protect the interest of workers
in contingencies such as sickness, maternity, temporary
or permanent physical disablement, death due to em-
ployment injury resulting in
loss of wages or earning.
• Contributions
• Benefits
• Adjudication of disputes and claims
• Penalties
Eligible Salary: 21000 pm Earned Gross
Contribution: Employer: 4.75%
Employer 1.75%
Of Gross
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The Employee Provident fund Act 1952

The Employees' Provident Fund Organization (abbreviated to EPFO), is an

Organization tasked to assist the Central Board of Trustees, a statutory
body formed by the Employees' Provident Fund and Miscellaneous Provi-
sions Act, 1952 and is under the administrative control of the Ministry of
Labor and Employment.
• Contribution
• Loans
• Interest rate
• Loyalty benefit
• EDLI Scheme
• Provident fund
• Pension fund

Salary: Rs. 15000/- pm Basic + VDA

Contribution: Employee: 12% Provident Fund
Employer: 8.33% to Pension Fund
3.67% to Provident Fund
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Maternity Benefit Act 1961

Maternity Benefits Act 1961, Act Under The Maternity Benefits

Act,1961. The Maternity Benefit Act, aims to regulate of
employment of women employees in certain establishments
for certain periods before and after child birth and provides for
maternity and certain
other benefits.
• Working by women prohibited during certain period
• Right to payment of maternity benefit
• Payment of medical bonus
• Leave for miscarriage
• Leave with wage for tubectomy operation
• Nursing breaks
13 weeks before and 13 weeks after delivery
Medical Bonus 3500
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The Payment of Gratuity Act 1972

An Act to provide for a Scheme for the payment of gratuity

to employees
engaged in factories, mines, oilfields, plantations, ports,
railway companies,
shops or other establishments and for matters connected
therewith or incidental thereto..
• Eligibility
• Service period
• Calculation of gratuity

Calculation:
Last drawn salary (Basic + VDA)/26days * 15* No of years
of service (minimum 5 years)
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Labor Welfare Fund Act 1976

This is act intended for only workmen

category employees
• Contribution
• Benefits
Eligibility: Operators only
Employee contribution per annum: Rs. 30
Employer contribution per annum: Rs. 70
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Conclusion
The Government or Act never stops to provide extra
facilities beyond the specifications.

Now a days lot of managements are providing the extra

benefits to its employees to retain and develop the business.

It is essential that by understanding the legal requirements

and the current position in the industry to get more efficient
protection from the legal challenges.

Without employee the industry cannot survive. It is the

responsibility of the Employer to move towards voluntary
comply of all legal requirements in the industry.
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Questions and Answers session

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