LABOUR LAW PALLAVI BHOGLE

LABOUR LAW PALLAVI BHOGLE

The Trade Unions Act, 1926

REGISTRATION OF TRADE UNIONS

Explain the procedure and formalities for registration of a Trade Union.

[10]
05, Dec 03, 2K, Dec 99, Oct 98, Oct 97

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

Mode of Registration of a Trade Union [S.4]

A Trade Union may be a registered, unregistered or a recognised Trade Union. There is

basic distinction between these different Trade Unions. The members of a recognised and
registered Trade Union enjoy such benefits as the members of an unregistered Trade
Union do not.

Any seven or more members of a Trade Union may apply for registration of the Trade
Union. All the members applying for registration must subscribe their names to the rules
of the Trade Union and also comply with the provisions of the Act relating to registration
of Unions:
• Provided that no Trade Union of workmen shall be registered unless at least ten
percent, or one hundred of the workmen, whichever is less, engaged or employed
in the establishment or industry with which it is connected are the members of
such Trade Union on the date of making of application for registration
• Provided further that no Trade Union of workmen shall be registered unless it has
on the date of making application not less than seven persons as its members who
are workmen engaged or employed in the establishment or industry with which it
is connected.

If more than half of the members who applied for registration of Trade Union, cease to be
members of the Trade Union or dissociate themselves from the application by giving a
notice in writing to the Registrar before the registration is granted to the Trade Union, the
application shall be deemed to have become invalid. In all other cases when only half or
less than half of the members cease to be members of the Union or dissociate themselves
from the application as aforesaid, the application for registration shall be valid.

Application of Registration [S. 5]

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According to the provisions of the Act a Trade Union may become a registered Trade
Union in the following manner:
1. An application should be sent to the Registrar in which seven or more members of
such Union must subscribe their names. At least seven members must subscribe
names to the rules of the Trade Union.
2. The application in form ‘A’ should be accompanied with a copy of rules of the
Trade Union and a statement of the following particulars:
(a) the names, occupations, and addresses of the members making the
application;
(aa) in the case of a Trade Union of workmen, the names, occupations and
addresses of the place of work of the members of the Trade Union making the
application;
(b) the name of the Trade Union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the office bearers of
the Trade Union.
3. A general statement of the assets and liabilities of the Trade Union prepared in the
prescribed form and containing such particulars as may be required should be sent
with the application to the Registrar where a Trade Union has been in existence
for more than one year before the making of an application for its registration.

Provisions to be contained in the rules of a Trade Union. [S. 6]

Every registered Trade Union is required to have written rules dealing with certain matters
specified in Schedule II of the Central Trade Union Regulations, 1938. These rules generally
determine and govern the relationship between the Trade Union and its members. They also
provide guidance for the internal administration of the Trade Union. A Trade Union shall be
entitled to registration under this Act, if:
1. the executive of the Trade Union is constituted in accordance with the provisions of
this Act ; and
2. the rules of Trade Union provide for the following matters, namely:
(a) the name of the Trade Unions;
(b) the whole of the objects for which the Trade Union has been established;
(c) the whole of the purposes for which the general funds of the Trade Union shall
be applicable, all of which purposes shall be purposes to which such funds are
lawfully applicable under this Act;
(d) the maintenance of a list of the members of the Trade Union and adequate
facilities for the inspection thereof by the office bearers and members of the
Trade Union.
(e) the admission of ordinary members who shall be persons actually engaged or
employed in an industry with which the Trade Union is connected and also the
admission of the number of honorary or temporary members as office bearers
required udder section 22 to form the executive of the Trade Union;
(ee) the payment of a minimum subscription by members of the Trade Union
(f) the conditions under which any member shall be entitled to any benefit
assured, by the rules and under which any fine or forfeiture may be imposed on
the members;

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(g) the manner in which the rules shall be amended, varied or rescinded;
(h) the manner in which the members of the executive and the other office bearers
of the Trade Union shall be elected and removed;
(hh) the duration of period being not more than three years, for which the members
of the executive and other office-bearers of the trade Union shall be elected;
(i) the safe custody of the funds of Trade Union, and annual audit, in such manner
as may be prescribed, of the accounts thereof, and adequate facilities for the
inspection of the account books by the office bearers and members of the
Trade Union;
(j) the manner in which the Trade Union may be dissolved.

Conclusion: Under section 8 of the Act, the Registrar will register the Trade Union if he
is satisfied that the Trade Union has complied with all the requirements of this Act in
regard to registration. On registering the Trade Union, the Registrar shall issue a
certificate of registration, in the prescribed form, which shall be conclusive evidence that
the Trade Union has been duly registered under this Act.

Define Trade Union. Explain the powers of the registrar to reject the
application for registration and to cancel the registration of a Trade Union.
[10]
05, Dec 04, Dec 02

Discuss the duties and powers of the Registrar of Trade Unions under the
Trade Unions Act. [10]
99

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2 (h) defines ‘Trade Union’ which
can be analysed into the following ingredients:
Any combination whether temporary or permanent;
The combination should have been formed for the purposes of:
(a) regulating the relations between:
(i) workmen and employers; or
(ii) workmen and workmen ; or
(iii) employers and employers ; or

(b) imposing restrictive conditions on the conduct of any trade or business. But
this Act shall not affect:
any agreement between partners as to their business ; or

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LABOUR LAW PALLAVI BHOGLE

any agreement between an employer and those employed by him as to such

employment ;
any agreement in consideration of sale of the goodwill of a business or
instruction in any profession, trade or handicraft.

The appropriate Government shall appoint a person to be the Registrar of Trade Unions
for each State, under section 3of the Act.

Powers of Registrar regarding Application of Registration

Under section 5 an application for registration can be made. Every registered Trade
Union is required to have written rules dealing with certain matters specified in Schedule
II of the Central Trade Union Regulations, 1938 [S. 6]. These rules generally determine
and govern the relationship between the Trade Union and its members. They also provide
guidance for the internal administration of the Trade Union.

The Registrar will register the Trade Union, under section 8, if he is satisfied that the
Trade Union has complied with all the requirements of this Act in regard to registration.
The Registrar shall register the Trade Union by making necessary entries in the register,
to be maintained in such form as may be prescribed. The particulars relating to the Trade
Union contained in the statement accompanying the application for registration shall be
entered in the register.

The workmen of an industrial establishment can form as many Unions as they like. There
is nothing in the Act that bars the formation of rival Unions or requires a Union applying
for registration to give notice to all existing Unions. When a Union seeks registration, all
that it has to do is to ensure that the provisions of the Act, Rules and Regulations made
thereunder relating to registration of Trade Union have been complied with.

The Registrar also has the power to call for further particulars and to require alteration of
name [S. 7]. The registration of a Trade Union will be refused by the Registrar if the
name under which a Trade Union is proposed to be registered is identical with that of any
existing Trade Union or so nearly resembles such name as to be likely to deceive the
public or the members of either Trade Union. In such a case the Registrar may require the
persons applying for such registration to change the name of the Trade Union, and it shall
be registered only after such alteration.

The Registrar may also ask for further information, which he thinks necessary for the
purpose of satisfying himself that the application complies with the provisions of sections
5 and 6 of the Act. On application for registration being made the Registrar may call for
further information for the purpose of satisfying himself that the application complies
with the provisions of this Act. Such information may be asked for only from the
applicant and not from any other source.

It was held in IFFCO, Phulpur Karmchari Sangh v. Registrar of Trade Unions and
others, that once the trade union is registered by the Registrar of Trade Unions under

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LABOUR LAW PALLAVI BHOGLE

Section 8 of the Trade Unions Act, 1926, certificate of Registration continues to hold
good until it is cancelled. The action of the Registrar of Trade Unions registering the
change of names of office bearers of a union does not amount to registration of trade
union.

Where the Registrar takes no action on an application for more than three months, a writ
under Art. 226 can be issued commanding the Registrar to deal with the application.
Where different set of office bearers are filed by rival group in a Trade Union the
Registrar has no power to hold a quasi-judicial inquiry. He has no power for adjudication
although he is given quasi-judicial power in registering the Trade Union or in their
cancellation. He has an administrative duty to record changes in office bearers under
Section 8 read with Section 28. In exercising this function the Registrar can only
reasonably enquire to discover whether the changes to be recorded conform to actual
facts and rules. But this power cannot convert his inquiry into quasi-judicial proceeding
in which each side has the right to lead evidence and cross-examine witnesses. He can
hold a summary inquiry for his own satisfaction.

Functions of Registrar

The primary function of the Registrar is to examine the applications made to him for
registration and look at the objects of the Union for which it may be formed. On
compliance of statutory conditions as provided in the Act, he shall grant registration
certificate to the Union. As a matter of principle, the Registrar has no power to declare
the election of office bearers of a Union unconstitutional. But where the petitioner has
himself submitted to the jurisdiction of the Registrar by requesting him to make an
enquiry, he cannot subsequently be allowed to raise an objection that the Registrar acted
without jurisdiction, for once he had availed the opportunity of getting a favourable order
from the Registrar, he was estopped from challenging the jurisdiction of the Registrar if
the result of the inquiry happened to be against him. The Registrar shall be fully within
his jurisdiction if he makes an inquiry about the legality of the new election of the office
bearers of a Trade Union for the purpose of maintaining a register showing the name of
the office bearers who may, at the appropriate time, be required to comply with the
provisions of the Act. The acceptance or non-acceptance by the Registrar of the election
of the office bearers of a Union is legal only for the purpose of maintenance of records in
his office to facilitate the administration of the Act, but is open to challenge in the law
court.

Powers of Registrar regarding Cancellation of Registration

Under section 10, power to withdraw or cancel registration of a Trade Union is given to
the Registrar. The Registrar can exercise his power in the following cases:
1. On the application of the Trade Union to be verified in the prescribed manner.
2. If the Registrar is satisfied that the certificate of registration has been obtained by
fraud or mistake.
3. Where the Trade Union has ceased to exist.

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4. If the Union has willfully and after notice from the Registrar contravened any
provisions of this Act or allowed any rule to continue in force, which is
inconsistent with the provisions of the Act.
5. Where the Union has rescinded any rule providing for any matter provision for
which is required to be made by section 6.
6. According to clause (c) of Section 10 if the Registrar is satisfied that a registered
Trade Union of workmen ceases to have the requisite number of members, the
registration can be cancelled.

The Registrar on receiving an application from the Union for withdrawal or cancellation
of registration must before granting the prayer, satisfy himself that the withdrawal or
cancellation of registration was approved by a general meeting of the Trade Union or if it
was not so approved it had the approval of the majority of the members of the Trade
Union. For this purpose he may call for such further particulars as he thinks necessary
and may also examine any officer of the Union.

Except when the registration is withdrawn on an application by the Union itself, the
Registrar must give to the Trade Union not less than two months previous notice in
writing specifying the ground on which it is proposed to withdraw or cancel the
certificate of registration. It is quite clear from the provisions of section 10 of this Act
that no such notice as aforesaid by the Registrar to the Union is necessary, when the
registration is withdrawn or cancelled on an application by the Union itself.

It was held in Tata Electric Companies Officers Guild v. Registrar of Trade Unions, that
for cancellation of registration of a Trade Union willful contravention of provision of the
Act is necessary. Therefore where a Trade Union did not file return due to
misunderstanding of accounting year and the return was filed soon after receipt of show
cause notice from the Registrar, the cancellation of registration on the ground of non-
filing of return was held improper.

In Bombay Fire Fighters Services Union, Mumbai v. Registrar of Trade Unions, Bombay,
an appeal was filed by the Union challenging the order of Registrar canceling its
registration for continued contravention of Section 28 of the Trade Unions Act, 1926.
Setting aside the impugned order the High Court observed that the said order was in
violation of the mandatory provisions of Section 10 of the Act. The respondent, Registrar
had not addressed a previous show cause notice in writing to the appellant union at its
correct address. Therefore, the cancellation of registration was held illegal and improper.

Conclusion: The Registrar on registering a Trade Union shall issue a certificate of

registration in the prescribed form, which shall be conclusive evidence that the Trade
Union has been duly registered under this Act. [S.9]

A limited right of appeal from the decisions of the Registrar is granted by section 11 of
the Act. Any person aggrieved by the refusal of the Registrar to register a Trade Union or
by the withdrawal or cancellation of a certificate of registration has the right of appeal.
The appeal should be preferred within the prescribed period.

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Define Trade Union as defined under the Trade Union Act, 1926. What are
the advantages of registration of a trade union? [10]
Dec 05

Discuss the legal character of a registered trade union. [10]

02 (AE – 020), 98

Explain the effects of non-registration of a trade union. [10]

02

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2 (h) defines ‘Trade Union’ which
can be analysed into the following ingredients:
1. Any combination whether temporary or permanent;
2. The combination should have been formed for the purposes of:
(a) regulating the relations between:
(i) workmen and employers; or
(ii) workmen and workmen ; or
(iii) employers and employers ; or

(b) imposing restrictive conditions on the conduct of any trade or business. But
this Act shall not affect:
(i) any agreement between partners as to their business ; or
(ii) any agreement between an employer and those employed by him as to
such employment ;
(iii) any agreement in consideration of sale of the goodwill of a business
or instruction in any profession, trade or handicraft.

Incorporation of Registered Trade Union [S.13]

A Trade Union after registration becomes entitled to the following advantages:

It becomes a body corporate by the name under which it is registered.

By incorporation, the union is vested with a corporate personality, distinct from the
members who compose it.

An effect of incorporation is that the members and other persons shall be a body
corporate capable forthwith of exercising all the functions of an incorporated company
and having perpetual succession and common seal. Thus the trade union becomes a body
corporate, which is capable immediately of functioning as an incorporated individual.

It gets perpetual succession and common seal.

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An incorporated trade union never dies. It is an entity with perpetual succession. In spite
of the total change in membership, the union will be the same entity, with the same
privileges and immunities, estates, and possessions. Perpetual succession, therefore,
means that the membership of a union may keep changing from time to time, but that
does not affect the union’s continuity.

It can acquire and hold both movable and immovable property.

A trade union, being a legal person, is capable of owning, enjoying and disposing of
property in its own name. The union becomes the owner of its capital and assets. A
member does not even have an insurable interest in the property of the union. Thus,
incorporation helps the property of the union to be clearly distinguished from that of its
members. The property is vested in the union as a body corporate, and no changes of
individual membership affect the title.

It can contract through agents.

It can sue and be sued in its registered name.

A trade union, being a body corporate, can sue and be sued in its own name. It can file
criminal complaint but a natural person must represent it. It is not necessary that the same
person should act as a representative throughout.

An unregistered Trade Union could not be sued in Tort by suing a member thereof in a
representative capacity. The proper course in such a case was to sue a member for any
cause of action that lay against that member and it was not intended anywhere that such a
suit, would in any way be improper. Therefore an unregistered Trade Union is only a
voluntary association of individuals having no corporate existence. It is not a legal entity.
An unregistered Trade Union cannot be sued and any appearance of officials on its behalf
before the Court is not right. Therefore any person aggrieved by a wrong committed by
the members of such a Union should bring an action against all persons personally who
were members of the Union at the time of the commission of alleged wrong; or in case
the members are large in number, leave to sue them through a few to represent them may
be obtained under the Civil Procedure Code provided they have common interest in
resisting the claim.

Conclusion: A Trade Union may be a registered, unregistered or a recognised Trade

Union. There is basic distinction between these different Trade Unions. The members of
a recognised and registered Trade Union enjoy such benefits as the members of an
unregistered Trade Union do not.

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LABOUR LAW PALLAVI BHOGLE

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

Explain the purposes for which a General fund of a Trade Union can be
utilized? [10]
06, 03 (AE – 965), 2K, Dec 99

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

Section 15 of the Act is in the form of general restraint against expenditure of the general
funds of a Trade Union. The general funds of a registered Trade Union shall not be spent
on any other objects than the following, namely:
(a) the payment of salaries, allowances and expenses to office bearers of the Trade
Union;
(b) the payment of expenses for the administration of the Trade Union including audit
of the accounts of the general funds of the Trade Union;
(c) the prosecution or defence of any legal proceeding to which the Trade Union or
any member thereof is a party, when such prosecution or defence is undertaken
for the purpose of security or protecting any rights of the Trade Union as such or
any rights arising out of the relation of any member with his employer or with a
person whom the member employs.
(d) the conduct of the trade disputes on behalf of the Trade Union or any member
thereof;
(e) the compensation of members for loss arising out of trade disputes;
(f) the allowances to members or their dependants on account of death, old age,
sickness accidents or unemployment of such members;
(g) the issue of, or the undertaking of liability under policies of assurance on the lives
of members, or under policies insuring members against sickness, accident or
unemployment;
(h) the provision of educational, social or religious benefits for members (including
the payment of the expenses of general or religious ceremonies for deceased
members) or for the dependants of members;
(i) the upkeep of a periodical published mainly for the purpose of discussing
questions affecting employers or workmen as such;
(j) the payment in furtherance of any of the object on which the general funds of the
Trade Union may be spent, of contributions to any cause intended to benefit
workmen in general, provided that the expenditure in respect of such
contributions in any financial year shall not at any time during that year be in
excess of one-fourth of the combined total of the gross income which has upto
that time accrued to the general funds of the Trade Union during that year and of
the balance at the credit of those funds at the commencement of that year; and

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(k) subject to any conditions contained in the notification, any other object notified
by the appropriate Government in the Official Gazette.

Thus it will be illegal to spend the Union funds for any purpose other than those stated
above. It is illegal to devote Union funds in support of an illegal strike or lockout and a
Union can be restrained by injunction from applying its funds for any unlawful purpose,
because such an expenditure shall be ultra vires of the Act.

In Mario Raposo v. H.M. Bhandarkar and others, the petitioner as well as the
respondents were members of a Union called V.C.O. Bank Employees' Association
Nagpur. The office bearers of the union purchased shares of U.T.I. in their individual
names out of the Union General Fund. It was held that purchase of shares cannot be
termed as investment under section 15 of the Act but is a speculative activity. Section 15
of the Act does not allow the Union to spend its funds on speculative activity.

Conclusion: Section 15 of the Act is in the form of general restraint against expenditure
of the general funds of a Trade Union. The general funds of a registered Trade Union
cannot be spent on any other objects than the ones given above.

State the purposes for which the political funds of a Trade Union can be
spent. [10]
03, Oct 2K, Dec 99, 97

Write a note on political fund of a Registered Trade Union. [6]

Dec 05

A registered trade union supports a political party candidate contesting for

a seat in the Assembly and spends its general funds for his election
campaign. Is it valid? [6]
Dec 03

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

A Trade Union can have such civic and political objects as are not inconsistent with its
primary object. To pursue such objects it can raise separate funds. Section 16 provides
that a registered Trade Union may constitute a separate fund from contributions
separately levied for or made to that fund. Out of this fund payments may be made for the
promotion of civic and political interests of its members in furtherance of any civic or
political objects enumerated in section 16 of the Act. It is noteworthy that no expenditure
for political purposes, out of the general fund is permitted. The interests on investments,

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which constitute the political fund will belong to that fund, and that fund may be lawfully
swelled by donations, subscriptions and so forth.

Section 16(2) declares the following as civic and political objects:

the payments of any expenses incurred, either directly or indirectly by a candidate or

prospective candidate for election as a member of any legislative body constituted
under the Constitution or of any local authority, before, during, or after election in
connection with his candidature or election ; or
the holding of any meeting or the distribution of any literature or documents in support of
any such candidate or prospective candidate; or
maintenance of any person who is member of any legislative body constituted under the
Constitution or of any local authority ; or
the registration of electors or the selection of a candidate for any legislative body
constituted under Constitution or for any local authority ; or
the holding of political meetings of any kind, or the distribution of political literature or
political documents of any kind.

Para (a) above refers mainly to election expenses and is so wide that it covers all
expenses from the stage of preparation to the incidental expenses incurred
after election.
Para (b) permits expenditure for holding of any meeting or distribution of any
literature or document in support of a candidate or prospective candidate for
election as a member of any legislative body, whether the nature of literature
or document is political or not. Therefore, any expenses incurred on a journal
or a newspaper containing matter in support of such candidate will also be
covered.
Para (c) is meant to maintain members of legislative bodies, and not to support
candidates. It authorises expenses for housing, clothing, payment of
allowances etc. to persons actually holding an office in a legislative body.
Para (d) covers an expenditure on issue of notices, circulars and posters with a
view to canvass registration of electors. So also expenditure on account of
holding of selection conference for the purpose of selecting or securing the
election of a candidate is also authorised under this para.
Under para (e) any money spent on distribution of political literature whether to
the members of the Union or to the general public is also covered.

Conclusion: It has to be borne in mind that no member shall be compelled to contribute

to the political fund. Any member who does not contribute to the political fund of the
Union shall not be excluded from any benefits of the Trade Union. He cannot be placed
directly or indirectly under any disability or at any disadvantage in comparison to other
members of the Trade Union, who have contributed to political fund. In other words no
discrimination on the ground of a member having contributed or not to the political funds
of the Trade Union shall be made. Further, contribution to the political fund cannot be
made a condition for admission of a person to the Trade Union. However, the control of
management of the political funds can exclusively be vested in the hands of only those

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members who have contributed to political funds. Non-contribution does not render a
member ineligible for any office involving control or management but such a right cannot
by pressed.

Discuss the extent of protection given to the office bearers of a registered

trade union against civil and criminal conspiracy under the Trade Unions Act,
1936. [10]
Oct 2K

Explain the immunities of a registered Trade Union with the help of decided
cases. [16]
06, 03, 03 (AE – 965), Oct 98, 97

Discuss the criminal immunity of a registered trade union. [6]

Dec 04

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

Criminal Conspiracy in Trade Disputes

Section 17 of the Act confers immunity from liability in case of criminal conspiracy
under section 120-B of the Indian Penal Code committed by an office bearer or member
of a registered Trade Union. The protection provided to members or office bearers of a
registered Trade Union is partial in the sense that the immunity is available only in
respect of agreements made between the members for the purpose of furthering any
legitimate object of the Trade Union as provided in section 15 of the Act. If the
agreement is an agreement to do an act, which is an offence, no immunity can be
claimed. The effect of section 17 of the Act, is that an agreement or combination of two
or more members of the registered Trade Union to do or cause to be done any act in
furtherance of a Trade dispute shall not be punishable as a conspiracy unless such act, if
committed by an individual, constitutes an offence. Registered Trade Unions have certain
rights to do in furtherance of their trade disputes, such as to declare strike and for that
purpose to persuade their members to abstain from their work.

In West India Steel Company Ltd. v. Azeez, a Trade Union leader obstructed work in the
factory for five hours protesting against deputation of workman to work in another
section. It was held that a worker inside the factory is bound to obey the reasonable
instructions given by his superiors and carryout the duties assigned to him. The mere fact
that such worker is a Trade Union leader does not confer on him any immunity in that

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regard, A trade union leader has no right in law to share managerial powers and he cannot
dictate any worker individually or to the workmen generally about the manner in which
they have to do their work or discharge their duties. A Trade Union can espouse the cause
of the workers and can resort to lawful agitations for conducting their rights but officials
of the Trade Union are not entitled to order a workman to stop his work or otherwise
obstruct the work of the establishment. Where officials of a Trade Union obstruct the
work the management is justified in proceeding against such worker and deal with him
effectively.

Immunity from Civil Suits in Certain Cases

Section 18 of the Trade Unions Act deals with the immunity from civil proceedings
afforded to a registered Trade Union, and to its members or office bearers. A person is
liable in Torts for deliberately bringing about a breach of contract of employment
between the employer and the employee. But a registered Trade Union, its members or
office bearers are protected from being sued for inducing a person to break his contract of
employment or for interfering with the trade, business or employment of some other
person, provided such inducement is in contemplation or furtherance of a trade dispute.

Section 18(1) of the Act provides that no suit or other legal proceeding shall be
maintainable in any Civil Court against any registered Trade Union or any office bearer
or member thereof in respect of any act done in contemplation or furtherance of a trade
dispute to which a member of the Trade Union is a party on the ground only that such act
induces some other person to break a contract of employment, or that it is an interference
with the trade, business or employment of some other person or with the right of some
other person to dispose of his capital or of his labour as he wills. In this sub-section
emphasis is on the word ‘only’ which means the protection is limited only to the grounds
of actionability provided in this sub-section, and a registered union, its members or office
bearers shall be liable for any act not covered by this clause. There shall be no immunity
if threats, violence or other illegal means are employed.

Section 18 (2) of the Act provides that a registered Trade Union shall not be liable in any
suit or other legal proceeding in any Civil Court in respect of any tortious act done in
contemplation or furtherance of a trade dispute by an agent of the Trade Union if it is
proved that such person acted without the knowledge of, or contrary to, express
instructions given by the executive of the Trade Union.

It was held in Ram Singh and others v. Mis. Ashoka Iron Foundary and others, that a suit
for perpetual injunction restraining the workmen from indulging in unfair labour practice
is deemed as one of civil nature and hence cognizable under Section 9 of the Civil
Procedure Code. Therefore, where the court has barred the workmen from holding'
meeting, dharna and interfering in the rights of a company, such a restraint does not
curtail the just trade union activities of the workers. It cannot be construed as unjust und
the workmen are at liberty to carryon legitimate trade union activities peacefully.

THE TRADE UNIONS ACT, 1926 14

LABOUR LAW PALLAVI BHOGLE

Rohtas Industries Staff Union v. State of Bihar, is the leading case on this section. In this
case the question for determination was, whether the employers have any right to claim
damages against the employee participating in an illegal strike and thereby causing loss
of production and business. It was held that the employers have no right of civil action,
for damages against the employees participating in an illegal strike within the meaning of
section 24(1) of the Industrial Disputes Act. It was further held that the striking workmen
are not prevented from taking recourse to the protection of section 18 of the Trade
Unions Act, 1926 mainly because the strike is illegal under section 24(1) of the Industrial
Disputes Act, 1947. It is the duty of the court to see that the strike is undertaken in
contemplation or furtherance of a trade dispute.

Conclusion

Can a minor be admitted as a member of a Trade Union? [6]

03 (AE – 965)

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

Under section 21, any person who has attained the age of fifteen years may be a member
of a registered Trade Union. Any such member, subject to the rules of Trade Union, shall
enjoy all the rights of a member and execute all instruments and give all acquaintances
necessary to be executed or given under the rules. Although a person on attaining the age
of fifteen years may become a member of the Trade Union, but in view of the
disqualification laid down in section 21-A he cannot be an office bearer of the Trade
Union until he attains the age of 18 years.

The Trade Union being a voluntary association is free either to admit or to refuse a
person as its member. The right of society to admit any person as its member is exercised
in accordance with its regulations, and until so admitted, no right exists which the court
can be called upon to protect or enforce. The courts have no power to require the Trade
Union to admit a person when such admission has been refused. Therefore, an application
to join the Trade Union and an undertaking to abide by the rules of the Trade Union, its
acceptance by the Union is all the nature of an offer and acceptance resulting in a contract
between the members and the Union. The rights and liabilities of the members of a Trade
Union are generally determined by the constitution of such Union, which forms the basis
of the contract.

Ordinary members of a Trade Union must be the persons actually engaged in the Industry
with which the Trade Union is concerned. A Trade Union has not only the right to admit
a person as its member, but also to expel any of its members provided the rules of the

THE TRADE UNIONS ACT, 1926 15

LABOUR LAW PALLAVI BHOGLE

Trade Union provide for such expulsion. Even where a provision is made in the
constitution of a Trade Union whereby a member can be expelled by the Trade Union,
such member must be given fair and adequate opportunity of being heard. The courts can
interfere with the discretion of a union to expel any of its members for violation of rules
either on the ground of the expulsion being not expressly authorised by the Union rules or
the decision of expulsion by the Union being in violation of the principles of natural
justice. Generally the rules of the Union make a remedial provision to be sought by an
aggrieved member by way of appeal to domestic Tribunals because it is an internal matter
of the Union itself. Where a provision for such remedy is made in rules, the courts have,
before granting a remedy to see that the aggrieved member had sought such remedy but
failed to get justice.

Conclusion

Explain the provisions relating to amalgamation of trade union and dissolution

of trade union. [10]
Dec 05, 04, 98, 97

Explain the procedure for change of name and amalgamation of trade unions.
[10]
Dec 99

Explain how the name of a registered trade union can be changed and the
procedure for amalgamation of trade unions. [10]
02 (AE – 020)

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

Change of name [S. 23]

Section 7(2) of the Act provides that no Trade Union shall be registered under the name
identical with the name of any other existing Trade Union. Section 23 of the Act provides
that any registered Trade Union may, with the consent of not less than two-thirds of the
total number of its members and subject to the provisions of section 25 of the Act, change
its name.

Amalgamation of Trade Unions [S. 24]

The method, for amalgamation of two or more Unions is provided for in section 24 of the
Act. Any two or more registered Trade Unions may become amalgamated together as one

THE TRADE UNIONS ACT, 1926 16

LABOUR LAW PALLAVI BHOGLE

Trade Union with or without dissolution or division of the funds of such Trade Unions.
But to support any amalgamation the votes of at least one-half of the members of each
and every such Trade Union entitled to vote must be recorded and also that at least sixty
per cent of the votes recorded must be in favour of the proposal of amalgamation.

Section 25 of the Act requires that notice in writing of every amalgamation signed by the
Secretary and by seven members of each and every Trade Union, which is a party thereto,
shall be sent to the Registrar. Where the head office of the amalgamated Trade Union is
situated in a different State, notice of amalgamation shall be sent to the Registrar of such
State.

The Registrar of the State in which the head office of the amalgamated Trade Union is
situated, shall, if he is satisfied that the provisions of this Act in respect of amalgamation
have been complied with and the Trade Union formed thereby is entitled to registration
under section 6, register the Trade Union in the manner provided in section 8 of the Act.
The amalgamation shall have effect from the date of registration.

Notice of Change of Name or Amalgamation [S. 25]

Section 25(l) of the Act requires that notice in writing of every change of name signed by
the Secretary and seven members of\the Trade Union changing its name shall be sent to
the Registrar. It should further be stated in the notice whether the consent of the members
was obtained by referendum or by resolution of a general meeting. On receipt of a notice
for change of name, the Registrar must satisfy himself that the provisions of the Act in
respect of change of name are complied with. If the proposed name is identical with that
by which any other existing Trade Union has been registered or in the opinion of the
Registrar, so nearly resembles such name as to be likely to deceive the public or the
members of either Trade Union, the Registrar shall refuse to register the change of name.

The Registrar shall, if he is satisfied that the provisions of this Act in respect of change of
name have been complied with, register the change of name in the register referred to in
section 8. The change of name shall have effect from the date of such registration.

Effect of Change of Name [S. 26(1)]

The change in the name of a registered Trade Union shall not affect any rights or
obligations of the Trade Union. It shall also not render ineffective any legal proceeding
by or against the Trade Union. Any legal proceeding, which might have been continued
or commenced by or, against a Trade Union by its former name may be continued or
commenced by or against its new name.

Effect of Amalgamation [S. 26(2)]

Section 26(2) of the Act provides that an amalgamation of two or more registered Trade
Unions shall not prejudice any right of any of such Trade Unions or any right of a
creditor or any of them.

THE TRADE UNIONS ACT, 1926 17

LABOUR LAW PALLAVI BHOGLE

An amalgamation shall have effect only after it has been registered. But registration of
amalgamation by itself is not the conclusive proof of the validity of the amalgamation.
The amalgamation may be declared invalid on the ground that the votes of fifty per cent
of the members had not been recorded.

Conclusion

COLLECTIVE BARGAINING AND TRADE DISPUTES

Define ‘Collective Bargaining’. Analyse the reasons for its failure in India.
[10]
Dec 04

Discuss how collective bargaining agreements help in smooth industrial relations. [10]
02

Explain the factors, which are helpful in the success of collective bargaining.
[10]
Dec 02 (OE – 2731)

Discuss the problems of multiplicity of trade unions and consequent intra-

union rivalry in India. [10]
04, Dec 02 (OE – 2731)

Explain the various levels of collective bargaining. [6]

Dec 04

State the methods of collective bargaining. [6]

02

Discuss the advantages of maintaining discipline in the industry and state

the role of trade unions in maintaining discipline in an industry. [16]
02

THE TRADE UNIONS ACT, 1926 18

LABOUR LAW PALLAVI BHOGLE

Introduction: An individual is free to bargain for himself and safeguard his own interest.
If an individual workman seeks employment he stands in a weaker position before his
master, who having command over wealth stands in better position to dictate his own
terms. However the position becomes different if a bargain is made by a body or
association of workmen. They can negotiate and settle their terms with the employer in a
better way and secure better wages, better terms of employment and greater security. The
object of collective bargaining is to harmonise labour relations, promote industrial peace
by creating equality of bargaining power between the labour and the capital. Collective
bargaining can exist only in an atmosphere of political freedom. Any conditions of
service like wages, hours of work, leave, gratuity, bonus, allowances and other like
privileges can all be settled by negotiation between the body of workmen and employer.
Thus, ‘collective bargaining’ is that arrangement whereby the wages and conditions of of
employment of workmen are settled through a bargain between the employer and the
workmen collectively whether represented through their Union or by some of them on
behalf of all of them.

Meaning and Definition

The Encyclopaedia of social sciences treats collective bargaining as a process of

discussion and negotiation between two parties, one or both of whom is a group of
persons acting in concert. More specifically, it is the procedure by which an employer or
employers and a group of employees agree upon the conditions of work. Ludwig Teller
defines collective bargaining as an agreement between a single employer or an
association of employers on the one hand and a labour Union on the other, which
regulates the terms and conditions of employment.

‘The Encyclopaedia Britannica’, defines collective bargaining as ‘negotiation between an

employer or group of employers and a group of work people to reach agreement on
working conditions. If negotiations are between an employer and a group of his work
people the dependence of the work people on the employer for their job weakens their
bargaining power, and therefore collective bargaining is more usually understood to be
negotiation between one or more Trade Unions and an employer or group or association
of employers. Trade Union organisation gives the work people greater strength to
providing means for the expert presentation of demands by skilled officials not dependent
on the employers for their jobs. Further a Union has funds and means of obtaining
information outside anyone undertaking and can secure for the work people at anyone
firm the support of their fellows in other firms.’

In the present day collective bargaining has become a general feature in all industry. Any
agreement collectively arrived at is generally observed by both the employers and
workmen who are not a party to it. Of course the Trade Union movement in India has not
been able to reach that standard which its counterpart, in other developed countries could,
yet it has done much. The object of any labour movement at all times is ‘to seek an ever
rising standard of living, which means not only more money but more leisure and a richer
cultural life.’ Collective bargaining is not a means of seeking a voice in management. It

THE TRADE UNIONS ACT, 1926 19

LABOUR LAW PALLAVI BHOGLE

is, no doubt, a method adopted by Trade Unions in championing the cause of their
members.

Large concentration of economic power in the hands of the employer due to modern
technological development has placed individual in a weaker position in so far as
contractual bargaining relating to the terms and conditions of employment or settlement
of disputes is concerned. It was to protect the interest of individual labour against the
capitalist employer that the Trade Union movement gave birth to the principle of
collective bargaining. The principle of collective bargaining presupposes the right of
workmen to be represented collectively by a Trade Union. This right has received
statutory recognition. A Trade Union can raise or sponsor a trade dispute and represent
on behalf of its members in legal proceedings in consequence of an industrial dispute.
But a Trade Union cannot represent a workman who is not its member. It does not mean
that the workman himself cannot, where a Trade Union has right to represent his case,
pursue or represent his own case in a legal proceeding. Provisions of section 36 of the
Industrial Disputes Act, 1947 are only permissive. A workman can either himself
represent his case or his case can be sponsored and represented by a Trade Union of
which such workman is a member.

The rights of an unregistered Trade Union are different from a registered Trade Union.
The employer can negotiate with an unregistered Trade Union. The management will be
bound to recognize any Trade Union, which has enrolled a majority of its employees as
its member. A Union whether registered or unregistered commanding allegiance of a
majority of the workmen has a better claim to negotiate with the employer on behalf of its
workmen in preference to a registered Trade Union presenting a minority of the
workmen. To accept a principle other than this would, in the opinion of the Madras High
Court, give room for abuse and lead to inconvenient results.

Methods of Collective Bargaining

The process of collective agreements normally takes one or the other of the forms,
namely negotiation, mediation and arbitration, voluntary or compulsory.

Negotiation is the process of settling the differences by face-to-face round table talks
between the representatives of the employees and employers. In case of failure of the
negotiating machinery there is the option to resolve the difference by mutual discussions
and understanding, a third party intervention to secure settlement of labour disputes by
way of mediation is often resorted to. The mediator functions not as a judge, but assists
the parties in dispute to reach an agreement by persuading them to resume or continue
their bargaining efforts. Arbitration is an act of settling labour disputes through the
medium of a neutral third party. The parties to a dispute may either agree amongst
themselves to submit for settlement by a third person and abide by his award or a dispute
might be submitted to the arbitrator under the provisions of a statute. In the former case it
is voluntary arbitration, in the latter it would be compulsory arbitration. In case of
voluntary arbitration the selection of arbitrator entirely rests with the parties to the
dispute. The award is binding on the parties and is also enforceable in the courts.

THE TRADE UNIONS ACT, 1926 20

LABOUR LAW PALLAVI BHOGLE

The Trade Unions in India could not contribute to the settlement of industrial disputes to
the desired extent because the labour is divided and the employers are well organised.
Further there is lack of proper labour leadership and the majority of workmen are
illiterate and as such unable to participate in mutual discussions. There are a number of
labour organisations, namely, All India Trade Union Congress, Indian National Trade
Union Congress etc. These Unions take a stand different from the other on many issues
because of their intra-Union rivalry.

The rule of collective bargaining has been incorporated in the Industrial Disputes Act,
1947, wherein the provision is made for appointment of Conciliation Officers, charged
with the duty of mediation in and promoting the settlement of industrial disputes. On a
reference of a dispute to the Conciliation Officer, a Conciliation Board is constituted
consisting of the representatives of employees and employer with the Conciliation
Officer as its chairman. The memorandum of settlement duly signed by the parties is sent
to the appropriate Government for publication. The main task of the Conciliation Officer
is to go from one camp to the other and find out the greatest common measure of
agreement to investigate the dispute and do all such things as he thinks fit to arrive at a
fair and amicable settlement of the dispute. A settlement arrived at by agreement between
the employer and workmen otherwise than in the course of Conciliation proceedings shall
be binding on the parties to the agreement. A settlement comes into operation on such
date and is binding for such period as agreed upon by the parties.
The principle of collective bargaining has been recognised by the International Labour
Organisation also. The Industrial Labour Conference held in 1951 adopted a resolution
recommending collective agreements which provided that

Machinery appropriate to the conditions existing in each industry should be

established by means of agreement or laws or regulations as may be
appropriate under national conditions, to negotiate, conclude, revise and
review collective agreements, or to be available to assist the parties in the
negotiations, conclusions, revision, and renewal of collective agreements.
The organisation, methods of operation and function of such machinery should be
determined by agreements between the parties or by national laws, or
regulations as may be appropriate under national conditions.

Conclusion

REMAINING QUESTIONS
Define a trade union. Discuss whether civil servants can form a trade union.
[10] - 02, 01, Oct 97

THE TRADE UNIONS ACT, 1926 21

LABOUR LAW PALLAVI BHOGLE

Introduction: A Trade Union is a continuous association of wage earners for the purpose
of maintaining the conditions of their lives. Section 2(h) of the Trade Unions Act, 1926
defines ‘Trade Union’.

Section 2 (h) defines ‘Trade Union’ which can be analysed into the following ingredients:
Any combination whether temporary or permanent;
The combination should have been formed for the purposes of:
(a) regulating the relations between:
(i) workmen and employers; or
(ii) workmen and workmen ; or
(iii) employers and employers ; or
(b) imposing restrictive conditions on the conduct of any trade or business. But this Act
shall not affect:
any agreement between partners as to their business ; or
any agreement between an employer and those employed by him as to
such employment ;
any agreement in consideration of sale of the goodwill of a business or
instruction in any profession, trade or handicraft.

A Trade Union is a continuous association of wage earners for the purpose of maintaining
the conditions of their lives. But the statutory definition given in the Trade Unions Act,
1926 uses the expression ‘combination’ instead of ‘association’ used in Sydney's
definition. The word ‘combination’ carries a very wide meaning. Whatever may be the
‘combination’ if it is for one or the other of the statutory objects (as provided in this Act)
it is Trade Union. It is the primary object of an association, which determines its nature.
A society consisted of authors, publishers and other owners of copyright and was formed
for the protection of copyright in music and songs. There were also certain rules which
could be regarded as imposing certain restrictions on the trade of the individual music
publishers who became members of the association. The society was held by the House
of Lords to be not a Trade Union because the principal object of the society was the
protection of the copyright. It was further held that, to come within the statutory
definition, restrictive conditions imposed must be in respect of trade or business in
general and imposition of such conditions on particular members of a trade or business
will not suffice. Tamil Nadu N.G.O. Union included among its members Sub-Magistrates
of the Judiciary, Tahsildars, officers incharge of Treasuries and Sub-Treasuries, officers
of Civil Court establishment, and the Home-Department of Government. Their union
could not be recognised as a Trade Union for these persons were civil servants engaged
in the task of the sovereign and regal aspects of the Government, which were its
inalienable functions.

Other Questions

Discuss the historical evolution of the trade union legislation. [10]

THE TRADE UNIONS ACT, 1926 22

LABOUR LAW PALLAVI BHOGLE

Dec 02

What is the object behind the enactment of the Trade Unions Act, 1926? What role can a
Trade Union play in nation building? [10]
97

Trade Disputes [4]

95

Who is a ‘protected workman’ under the Trade Unions Act, 1926? Discuss the problem
of outsiders in a trade union. [10]
02 (AE – 020)

Discuss whether teachers of a university can register their association under the Trade
Unions Act. [10]
?

Comment on the politicization of trade unions in India. [6]

Dec 02 (OE – 2731)

THE TRADE UNIONS ACT, 1926 23

LABOUR LAW PALLAVI BHOGLE

Workmen’s Compensation Act, 1923

PRELIMINARY

Explain the object of the Workmen’s Compensation Act, 1923 [10]

02

Introduction: In any industrial society the problem of labour management relations

becomes so important that some sort of social insurance becomes necessary to provide
adequate protection from losses caused to the labourers by accidents. With a view to
improve the condition of the workmen some social insurance legislations have been
enacted. The Workmen's Compensation Act, is one of the earliest measures adopted to
benefit the labourers. It was passed in 1923 and enforced on 1st July, 1924. Since then a
number of amendments have been made from time to time so as to suit the changing
needs and conditions of the workmen.

The object of the Act was to make provision for the payment of compensation by certain
class of employers to their workmen for injury by accident. The reasons that compelled
the initiation of the Bill were attributed to the growing complexity of industry with the
increasing use of machinery and consequent danger to workmen along with the
comparative poverty of workmen themselves that rendered it advisable that they should
be protected as far as possible from hardships arising from accidents.

The Workmen's Compensation Act was framed with a view to provide for compensation
to workmen incapacitated by an injury from accident arising out of and in the course of
employment. It is a guarantee against hazards of employment to which n workman is
exposed because of his employment. The main object of the Act was to make provision
for payment of compensation to a workman only, (i.e, the concerned employee himself in
case of his surviving the injury in question and to his dependants in the case of his death)
in view of section 2 (1) (n) of the Act. But compensation is not the only benefit flowing
from this Act ; it has important effects in furthering work on the prevention of accidents,
in giving workmen greater freedom from anxiety and in rendering industry more
attractive.

This Act extends to the whole of India except the State of Jammu and Kashmir. Unlike
the English Act, this Act is not applicable to air workmen. It is applicable to workmen of
certain industries. It affords protection to a workman from loss or injury caused by
accident arising out of and in the course of his employment. It is not necessary that the
accident should have been caused by some wrongful act of the employer. Compensation
is payable only when the conditions provided by section 3 are fulfilled and the procedure
prescribed by section 10 has been adopted in making a claim to compensation. Any claim

WORKMEN’S COMPENSATION ACT, 1923 24

LABOUR LAW PALLAVI BHOGLE

for compensation must be made within two years of the occurrence of the accident or in
case of death within two years from the date of death.

The rights and liabilities of the parties stand crystallized on the date of the accident under
sections 3 and 4 of the Act. Where the schedule is amended it must have prospective
operation unless the Schedule is made expressly retrospective. Therefore, compensation
would be payable at rates applicable on the date of the accident.

Main Features of the Act

The Workmen's Compensation Act is modelled on the British pattern. Under the Act
payment of compensation has been made obligatory on all employers whose
employees ore entitled to claim benefit under the Act.
The workman or his dependants may claim compensation if the injury has been
caused by accident arising out of and in the course of employment and in case of
injury not resulting in death if such accident cannot be attributed to the workman
having been at the time of accident under the influence of drink or drugs or if it is
not caused die to willful disobedience of rule or orders or disregard of safety
devices.
The various classes of workmen have been specified in the definition of ‘Workman’
in section 2 (1)(n) and in Schedule II. Persons employed in administrative or
clerical capacity and earning more than Rs. 1,600/- per month (except railway
servants) were excluded from the benefit of the Act. But now the condition of
average monthly wage limit of Rs. 1,600/-has been abolished.
The amount of compensation payable depends in case of death on the average
monthly wages of the deceased workman and in the case of an injured workman
both on the average monthly wages and the nature of disablement.
The term ‘wages’ for the purposes of this Act includes over-time pay and the value of
any concessions or benefit in the form of food, clothing, free quarters, etc.
Whenever the compensation payable to any workman has to be worked out, first
of all his monthly wages are determined and the amount of compensation is
decided by reference to section 4 and Schedule IV, where in the method for
determining the amount of compensation for death, and permanent disablement is
given.
In order to protect the interest of dependants in case of fatal accidents the following
provisions are made
All cases of fatal accident are to be brought to the notice of the Commissioner;
If the employer admits his liability the amount of compensation payable is to be
deposited with the Commissioner;
If the employer admits his liability and at the same time there are grounds for
believing compensation to be payable, the dependants get the information
necessary to enable them to judge if they should make a claim or not.
A sub-contractor may indemnify his contractor if he has had to pay compensation
either to a principal or to a workman.
The Commissioner may deduct a sum of Rs. 50/- from the amount of compensation
and pay the same to the person who has incurred funeral expenses of the deceased

WORKMEN’S COMPENSATION ACT, 1923 25

LABOUR LAW PALLAVI BHOGLE

workman.
The Act is administered by the Commissioner for Workman's Compensation
appointed by the State Government.

Conclusion

Partial disablement [5]

Oct 97, 95

Permanent disablement [5]

Dec 03, 01, Oct 97, 95

Introduction: Section 2(1)(g) defines partial disablement Such disablement is of two

kinds:
Temporary partial disablement.
Permanent partial disablement.

The test of such disablement is the reduction in the earning capacity of the workman. If
the earning capacity of a workman is reduced in relation to the employment he had been
at the time of the accident resulting in such disablement, it is temporary partial
disablement. If the injury caused by an accident results in the reduction of the earning
capacity in respect of employment which the workman was capable of undertaking at the
time of accident it is permanent partial disablement. Any injury specified in part II of
Schedule I shall be deemed to result in permanent partial disablement. Compensation
under the Act is payable only if the injury caused by an accident results in workman's
disablement exceeding three days.

To determine whether the injury is permanent or temporary the courts have to see
whether the injury has incapacitated the workman from every employment which he was
capable of undertaking at the time of accident or merely from the particular employment
in which he was at the time of the accident resulting in disablement. In the former case
the disablement is partial but permanent, in the latter case it is temporary.

Loss of earning capacity or the extent of it is question of fact. It has to be determined by

taking into account the diminution or destruction of physical capacity as disclosed by the
medical evidence and then it is to be seen to what extent such diminution or destruction
would reasonably be taken to have disabled the affected workman from performing the
duties which a workman of his class ordinarily performs.

The following propositions are helpful in deciding the nature of disablement:

(i) Earning is not the same as earning capacity. There is difference between
earning of a person and his capacity to earn.
(ii) Rise in earning may be because of various factors and rise in wages is not

WORKMEN’S COMPENSATION ACT, 1923 26

LABOUR LAW PALLAVI BHOGLE

decisive of no loss of earning capacity.

(iii) Loss of physical capacity is not co-extensive with loss of earning capacity.
(iv) Loss of physical capacity or physical incapacity may be relevant in assessing
to what extent there is loss of earning capacity for every employment which
the workman was capable of undertaking at that time or the employment in
which he was engaged at the time of the accident as the case falls for
consideration.
In Upper Doaba Sugar Mills Ltd. v. Daulat Ram a blacksmith had lost the index and
middle finger, the rest of the hand, namely, thumb and other two fingers could be utilized
in work. The test laid down in this case to determine the nature of disablement was that:
"It is not enough if it is found that the workman is disabled from performing his duties of
a blacksmith fitter; the Court should consider whether he has been incapacitated from
undertaking any employment and whether in that other employment the rest of the hand
could be utilized.

In General Manager G.R.P Railway, Bombay v. Shankar, a railway servant working on

A-I post lost one eye and two teeth as a result of collision between two engines. He was
declared by the Medical Officer as unfit for A-I and B jobs but fit for C-2 job because of
his defective vision. Class C-2 job was offered to him by the railway administration. He
refused the offer and claimed compensation on the basis of total disablement. It was held
that "the workman was entitled to compensation not on the basis of total but partial
disablement". Obviously in this case there appears only reduction in earning capacity as
an alternative employment was offered to the workman by the employer himself.

In a case where a workman suffered an injury by accident which did not in fact reduce his
capacity to work but stamped him with a visible mark of physical deficiency or deformity
as dissuaded the likely employers from employing him he would be deemed incapacitated
for work in the sense that his earning capacity would clearly be altogether destroyed.

Total Disablement

‘Total disablement’ is defined in section 2(1)(1) of the Act. When a workman is

incapacitated of doing any work which he was capable of performing at the time of
accident resulting in such disablement, it is total disablement. Incapacity for all work is
different from the incapacity for the work which a workman was doing at the time of
accident. It is further provided in the Act that permanent total disablement shall be
deemed to result from every injury specified in Part I of Schedule I. It may also result
from any combination of injuries in Part II of Schedule I, where the aggregate percentage
of the loss of earning capacity, as specified against those injuries amounts to one hundred
percent or more.

It was held in National Insurance Co. Ltd. v. Mohd. Saleem Khan and another that if the
workman is incapacitated to do all the work which he was capable of performing at the
time of accident it is a case of total disablement. It may be that in view of the injuries the
workman is capable enough to render some other sort of work, but still when there is

WORKMEN’S COMPENSATION ACT, 1923 27

LABOUR LAW PALLAVI BHOGLE

incapacity to do the work which he was capable of performing by the date of the accident
it is a case of total disablement. The certificate of the doctor of physical impairment and
loss of physical function is not material in deciding the question of total disablement.

If the incapacity is of such a nature that a workman cannot get employment for any work
he can undertake, it would be total permanent' disability. The expression ‘incapacitates a
workman for an work’ does not mean any and every work which he may do but means
such work as is reasonably capable of being sold in the market. In other words, it does
not mean capacity to work or physical incapacity. In case of total disablement there must
be incapacity for all work resulting in hundred percent loss of earning capacity. The
Workmen's Compensation Act is not concerned with physical injury as such, nor with the
mere effect of such injury on the physical system of the workman. It is concerned only
with the effect of such injury or of the diminution of physical power caused thereby, on
the earning capacity of the affected workman. The loss of earning capacity is not a matter
for medical opinion but the extent of it is a question of fact. It has got to be determined by
taking into account the diminution or destruction of physical capacity as disclosed by the
medical evidence and then it is to be seen to what extent such diminution or destruction
could reasonably be taken to have disabled the affected workman from performing the
duties which a workman of his class ordinarily performed and from earning the normal
remuneration paid for such duties.

The court must take into consideration the nature of injury, the nature of the work which
the workman was capable of undertaking and its availability to him. The employer's
willingness to employ him in any other alternative employment may also have some
relevance in determination of the extent of disablement.

In Hutti Gold Mines Co. v. Ratnam it was held that, "where an employee was discharged
by the employer as if his injury rendered him unfit for any kind of work, it is clear proof
that there was total disablement. The Court should not accept the explanation which is
tendered for the first time before it that the employer did not partake any offer to the
employee of any other employment since no such employment was possible or available.
The proper inference in such a case would be that not even that employer had in mind
any doubt that there was no employment which such employee could hold after the
injury. It would be, in such a case, for the employer to suggest in the course of
proceedings that the employee could obtain suitable employment commensurate with his
physical condition after the injury sustained by him. If, there was no such suggestion by
the employer, it was surely unnecessary for the employee to produce evidence that he
went from one place to another in search of employment but could find none agreeable to
employ him.

The definition of ‘total disablement’ speaks of ‘incapacity for all work’ and not
‘incapacity to work.’ The use of preposition ‘for’ instead of ‘of’ makes it amply clear that
it is the incapacity to get employment which is relevant and not the physical incapacity to
undertake any work. If because of his apparent physical defects caused by an injury no
one will employ a workman, however, efficient he may be, in fact, he has lost the power
to earn wages as completely as if he was paralysed in every limb. Where there is no

WORKMEN’S COMPENSATION ACT, 1923 28

 LABOUR LAW PALLAVI BHOGLE

longer any earning power remaining in the workman who was injured whatever may be
his physical power to perform a duty in any sphere of activity, so long as no one could be
persuaded to offer him any such employment the incapacity is complete.

Conclusion

Discuss how the term ‘Workman’ is defined under the Workmen’s

Compensation Act, 1923 [10]
01, 99, 98

Introduction: According to section 2(1)(n) workman means any person who is:

A railway servant as defined in Clause (34) of Section 2 of the Railways Act, 1989 except
those who are permanently employed in any administrative district or sub-divisional
office of a railway. Out of this class also if a person is employed in any capacity as is
specified in Schedule II he will be a workman.

(ia) Any person who is

(a) a master, seaman or other member of the crew of a ship;
(b) a captain or other member of the crew of an aircraft ;
(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in
connection with a motor vehicle,
(d) a person recruited for work abroad by a company, and who is employed outside India
in any such capacity as is specified in Schedule II and the ship, aircraft or motor vehicle,
company, as the case may be, is registered in India, or;

(a) Any person who is employed in any such capacity as is specified in Schedule II, whether
the contract of employment was made before or after the passing of this Act and
whether such contract is express or implied, or oral or in writing.
(b) Where the workman is dead any reference to a workman shall include his
dependants as defined in this Act.

The following are not workman:

Any person working in the capacity of a member of the Armed Forces of the Union of
India.

To determine whether a person other than a railway servant is a workman or not, a

reference to Schedule II, is necessary. The following conditions must be fulfilled before a
person can be said to be a workman under this Act:
the employment must be of the nature mentioned in Schedule II of the Act.

WORKMEN’S COMPENSATION ACT, 1923 29

LABOUR LAW PALLAVI BHOGLE

Conclusion

WORKMEN’S COMPENSATION
Explain the circumstances under which the employer would be liable to pay
compensation to the workman under the Workman’s Compensation Act, 1923.
[10]
05, 02, Dec 99, Dec 99, Oct 98

Explain the circumstances under which a workman can claim compensation

under the Workman’s Compensation Act, 1923. [10]
03, 01, 97

Write a note on ‘occupational disease.’ [6]

06

Accident [10]
02

Explain the defences available to the employer under S. 3 of the Workman’s

Compensation Act, 1923. [6]
Dec 05

Introduction: The liability of an employer to pay compensation is limited and is subject

to the provisions of the Act. Under of section 3 (1) the liability of the employer to pay
compensation is dependent upon the following four conditions:
Personal-injury must have been caused to a workman;
Such injury must have been caused by an accident;
The accident must have arisen out of and in he course of employment;
The injury must have resulted either in death of the workman or in his total or partial
disablement for a period exceeding three days.

The employer shall not be liable to pay compensation in the following cases:
If the injury did not result in total or partial disablement of the workman for a period
exceeding three days;
In respect of any injury not resulting in death or permanent total disablement the
employer can plead:
that the workman was at the time of accident under the influence of drinks or
drugs;
that the workman willfully disobeyed an order expressly given or a rule expressly

WORKMEN’S COMPENSATION ACT, 1923 30

LABOUR LAW PALLAVI BHOGLE

framed for the purpose of securing safety of workmen; and

that the workman having known that certain safety-guards or safety devices are
specifically provided for the purpose of securing the safety of workman,
willfully disregarded or removed the same.
The employer can succeed in his plea only if he can establish that the injury was
attributable to anyone of the above factors.

Employer's Liability in case of Occupational Diseases

Section 3(2) deals with the payment of compensation in case of an injury resulting from
occupational diseases. The list of the occupational diseases is contained is Schedule III of
the Act. Schedule III is divided into three parts, A, B and C. The disease contracted must
be an occupational disease peculiar to the employment specified in Schedule III. In
respect of every such disease mentioned as occupational disease in Schedule III, a list of
a number of employments is given. To support any claim for compensation in case of
occupational disease in Part A no specified period of employment is necessary; for
diseases in Part B the workman must be in continuous employment of the same employer
for a period of six months in the employment specified in that part; and for diseases in
Part C the period of employment would be such as is specified by the Central
Government for each such employment whether in the service of one or more employers.
The contracting of any disease specified in Schedule III shall be deemed to be an injury
by accident arising out of and in the course of employment unless the contrary is proved.

Part A of Schedule III

The employer shall be liable to pay compensation for an injury resulting from an
occupational disease mentioned in Part A of Schedule III, if a workman employed in any
employment specified in Part A of Schedule III contracts any disease specified therein as
an occupational disease peculiar to that employment. The contracting of the disease shall
be deemed to be an injury by accident and unless the contrary is proved the accident
would be deemed to have arisen out of and in the course of employment.

Part B of Schedule III

In case of contracting of any disease mentioned in Part B of Schedule III the employer
shall be liable if a workman while in the service of an employer in whose service he has
been employed for a continuous period of not less than six months in any employment
specified in Part B of Schedule III contracts any disease specified therein as an
occupational disease peculiar to that employment. The contracting of the disease shall be
deemed to be an injury by accident within the meaning of this section, and unless
contrary is proved, the accident would be deemed to have arisen out of and in the course
of the employment.

Part C of Schedule III

WORKMEN’S COMPENSATION ACT, 1923 31

LABOUR LAW PALLAVI BHOGLE

Where a workman contracts any disease specified in Part C of Schedule III the employer
shall be liable:
1. If a workman was in the service of one or more employers in any employment
specified in Part C of Schedule III for such continuous period as the Central
Government may specify in respect of each such employment; and
2. If he contrasts any disease specified therein as an occupational disease peculiar to
that employment.

If the above two conditions are fulfilled, the contracting of the disease shall be deemed to
be an injury by accident within the meaning of section 3 of the Act and unless contrary is
proved the accident shall be deemed to have arisen out of and in the course of the
employment.
According to the first proviso to sub-section (2) of section 3 if it is proved:
(a) that a workman while in service of one or more employers in any employment
specified in Part C of Schedule III has contracted a disease specified therein, as an
occupational disease peculiar to the employment during a continuous period
which is less than the period specified under sub-section (2) of section 3 for that
employment, and
(b) that the disease has arisen out of and in the course of employment; the contracting
of such disease shall be deemed to be an injury by accident within the meaning of
section 3 of the Act.

Personal Injury

Injury ordinarily refers to a physiological injury. Personal injury does not mean only
physical or bodily injury but includes even a nervous shock, a mental injury or strain
which causes a chill. It is a term wider than bodily injury. In Indian News Chronicle v.
Mrs. Lazarus, a workman, employed as an electrician had frequently to go to a heating
room from a cooling plant, was attacked by pneumonia and died after a short illness of
five days. The Court held that the injury caused by an accident is not confined to physical
injury and the injury in the instant case was due to his working and going from a heating
room to a cooling plant as it was his indispensable duty.

Incase of personal injury caused to a workman by an accident arising out of and in the
course of employment unless the right to compensation is taken away under section 3(5),
the employer becomes liable to pay the compensation as soon as the aforesaid personal
injury is caused to the workman.

Mere vague offer to keep and continue the workman in the employment even after the
injury and the resultant disablement is not sufficient to disqualify the workman’s claim
under section 3 of the Act.

Accident

The expression "accident" has not been defined in the Act. It means any unexpected
mishap, untoward event, or consequence brought about by some unanticipated or

WORKMEN’S COMPENSATION ACT, 1923 32

LABOUR LAW PALLAVI BHOGLE

undesigned act which could not be provided against. The basic and indispensable
ingredient of the accident is the unexpectation. Whether a particular occurrence is
accident or not, it must be looked upon not only from the point of view of the person who
causes it but also from the point of view of the person who suffers it. Although an
accident means a particular occurrence which happens at a particular time but it is not,
necessary that the workman must be able to locate it in order to succeed in his claim.
There would be cases, where a series of tiny accidents, each producing some
unidentifiable results and operating cumulatively to produce the final condition of injury
constitute together an accident within the meaning of this section.

Employer not liable to pay compensation

Willful disobedience of orders or safety devices, etc

In order to disown any claim for compensation the employer has to show not only
disobedience of rules and safety devices but such disobedience must be willful and the
order must be' express. The burden of proving intentional disobedience on the part of the
employee would be on the employer who claims the benefit of the proviso. Mere
disobedience is not sufficient because it may be due to forgetfulness or the result of the
impulse of the moment. The plea of willful disobedience of the workman to any order
expressly given is not available in case of death of the workman but only in cases of
injury not resulting in death. Where the death of a workman was caused by an accident
arising out of and in the course of employment it is not a defence to plead that there was
willful disobedience of any order expressly given or rules framed for the purpose of
securing the safety of the workman.

In Arya Muni v. Union of India, a workman met with an accident while working in the
factory on June 5, 1954. The workman lost his right eye due to an injury caused by a
spark rushing into his eye. A notice in English directing all the workers to use goggles
while at work was put up on the notice board. Therefore, it was contended that the
workman himself, was negligent in so far as he disobeyed the instructions by not using
the goggles. Neither did he ever ask for goggles nor it was supplied by the supervisor.
The supervisor admitted that the goggles were in the stock but were not asked for by the
workman. It was further contended that the workman understood what was in the notice.
The workman stated in the evidence that he had asked for goggles but the same was not
given to him. It was argued on behalf of the employer that since the appellant had stated
that he knew about the goggles, it should be presumed that he knew about the instruction
that had been issued and thus about the contents of the aforesaid notice.

Compensation under Agreement

It was held in Roshan Deen v. Preeti LaI, that an agreement by a workman to relinquish
any right to compensation for personal injury arising out of and in the course of
employment would he null and void. The removal or reduction of liability of a person to
pay compensation under the Workman’s Compensation Act by any such agreement is not
permitted. In this case it was held that the order of Commissioner, dismissing claim of

WORKMEN’S COMPENSATION ACT, 1923 33

LABOUR LAW PALLAVI BHOGLE

injured workman as settled by agreement was obtained by fraud and as such the matter
was directed to be heard by Commissioner without further delay.

Conclusion

Explain the phrase ‘accidents arising out of and in the course of employment’
with reference to decided cases? [16]
Dec 05, 06, 04, Dec 02, Oct 2K, Oct 97, ?

Introduction: The liability of an employer to pay compensation is limited and is subject

to the provisions of the Act. Under of section 3 (1) the liability of the employer to pay
compensation is dependent upon the following four conditions:
Personal-injury must have been caused to a workman;
Such injury must have been caused by an accident;
The accident must have arisen out of and in he course of employment;
The injury must have resulted either in death of the workman or in his total or partial
disablement for a period exceeding three days.

Accident

The expression "accident" has not been defined in the Act. It means any unexpected
mishap, untoward event, or consequence brought about by some unanticipated or
undesigned act which could not be provided against. The basic and indispensable
ingredient of the accident is the unexpectation. Whether a particular occurrence is
accident or not, it must be looked upon not only from the point of view of the person who
causes it but also from the point of view of the person who suffers it. Although an
accident means a particular occurrence which happens at a particular time but it is not,
necessary that the workman must be able to locate it in order to succeed in his claim.
There would be cases, where a series of tiny accidents, each producing some
unidentifiable results and operating cumulatively to produce the final condition of injury
constitute together an accident within the meaning of this section.

Arising out of and in the course of employment

The expression ‘arising out of’ suggests the cause of accident and the expression ‘in the
course of’ points out to the place and circumstances tinder which the accident takes place
and the time when it occurred. A causal connection or association between the injury by
accident and employment is necessary. The onus is on the claimant to prove that accident
arose out of and in the course of employment. The employment should have given rise to
the circumstances of injury by accident. But a direct connection between the injury
caused by an accident and the employment of the workman is not always essential.
Arising out of the employment does not mean that personal injury must have resulted

WORKMEN’S COMPENSATION ACT, 1923 34

LABOUR LAW PALLAVI BHOGLE

from the mere nature of employment and is also not limited to cases where the personal
injury is referable to the duties which the workman has to discharge. The words 'arising
out of employment' are understood to mean that "during the course of the employment,
injury has resulted from some risk incidental to the duties of the service which unless
engaged in the duty owing to the master it is reasonable to believe the workman would
not otherwise have suffered. There must be a causal relationship between the accident
and employment. If the accident had occurred on account of a risk which is an incident of
the employment; the claim for compensation must succeed unless of course the workman
has exposed himself to do an added peril by his own imprudence. This expression applies
to employment as such, to its nature, its conditions, its obligations and its incidents and if
by reason of any of these, a workman is brought within the zone of special danger and so
injured or killed, the Act would apply. The employee must show that he was at the time
of injury engaged in the employer's business or in furthering that business and was not
doing something for his own benefit or accommodation. The question that should be
considered is whether the workman was required or expected to do the thing which
resulted in the accident though he might have imprudently or disobediently done the
same. In other words, was the act which resulted in the injury so outside the scope of the
duties with which the workman was entrusted by his employer as to say that the accident
did not arise out of his employment.

In the course of employment refers to the period of employment and the place of work. It
is neither limited to the period of actual labour nor includes acts necessitated by the
workman's employment. “Another important question”, as pointed out by Francis H.
Bohlen, is, “how far a servant is entitled to go outside his appointed sphere in obedience
to the orders of a superior. Of course, if such superior has the power to fix the spheres of
labour for the workman, a workman, by obeying them, merely passes into a new "course
of employment", but even if he has not, it seems that the servant is justified if he honestly
believes that such superior is authorised to employ him. An injury received within
reasonable limits of time and space, such as while satisfying thirst or bodily needs, taking
food or drink is to be regarded as injury received in the course of employment."

In State of Rajasthan v; Ram Prasad and another, the workman died due to natural
lightning while working at the site. It was held by the Supreme Court that in order that
the workman may succeed in his claim for compensation it is no doubt true that the
accident must have causal connection with the employment and arise out of it but if the
workman is injured as a result of natural force of lightning though it in itself has no
connection with employment of deceased Smt. Gita, the employer can still be held liable
if the claimant shows that the employment exposed the deceased to such injury. In the
present case the deceased while working on the site and would not have been exposed to
such hazard of lightning had she not been working so. Therefore the appellant was held
liable to pay compensation.

In Jyothi Ademma v. Plant Engineer, Nellore, the deceased workman was suffering from
a heart disease. His job was only to switch on or off in the thermal station where he was
employed. The Supreme Court observed that there was no scope for any stress or strain in
his duties. His death due to heart attack was, therefore, rightly held as not caused by

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LABOUR LAW PALLAVI BHOGLE

accident arising out of and in the course of his employment. Therefore, the judgment of
the High Court holding the appellant not entitled to compensation for death of her
husband was affirmed by the Supreme Court though the amount already paid to the
appellant was directed not to be recovered from her.

Conclusion

Explain the principle of ‘notional extension of time and space’ of employer’s

promise with the help of decided cases. [16]
05, 03, 03, ?, 97, 95

Introduction: Ordinarily a man's employment does not begin until he has reached the
place where he has to work and does not continue after he has left the place of his
employment. The period of going to or returning from employment are generally
excluded and are not within the course of employment. Traveling to and from is prima
facie not in the course of employment. But there may be reasonable extension in both the
time and place and a workman may be regarded as in the course of his employment even
though he had not reached or had left his employer's premises. It has been recognized
time and again that the sphere of a workman's employment is not necessarily limited to
the actual place where he does his work. If in going to or coming from his work he has to
use an access which is part of his employer's premises, or which he is entitled to traverse
because he is going to or coming from his work, he is held to be on his master's business
while he is using that access. The question is how far the employer is liable in case of an
injury caused by accident, taking place outside the normal place of employment.
This problem has been discussed by the House of Lords in St. Helens Colliery Co. Ltd. v.
Hewlston. In this case a workman working in a colliery was injured while traveling in a
special collier's train. The railway company had by an agreement with the colliery
company agreed to arrange for such a special train running between the colliery and the
place of residence of the workmen. Each workman was provided with a pass and the
amount of fare was deducted from his wages. It was held that the injury did not arise in
the course of employment within the meaning of the English Workmen Compensation
Act, 1906 for the following reasons:
1. There was no obligation on the workmen to use the train. The workmen had a
right to travel by such train but were not bound to travel by such train. They could
have traveled by any other alternative means. Any workman of colliery was free
to avail of the privilege or not. Had he been bound by the contract of his service to
travel by such train, he would have been in the course of employment:
2. If the physical features of the locality had been such that the means of transit
offered by the employer would have been the only means of transit to transport
the workman to his work, there may in the workman's contract of service be
implied a term that there was an obligation on the employer to provide such
means and a reciprocal obligation on the workman to avail himself of them.
3. A workman in a colliery is not in the course of his employment, when he is riding
in a vehicle provided by his employer unless, by the terms of his contract, he is

WORKMEN’S COMPENSATION ACT, 1923 36

LABOUR LAW PALLAVI BHOGLE

bound to travel in that vehicle.

What may be called environmental accidents i.e. accidents resulting from the
surroundings in which the workman is employed or through which he has to reach his
place of work in order to carry out his obligations to his employer also fall within the
scope of the phrase, ‘arising out of and in the course of employment.’

This rule is subject to the exception that where the accident occurs in a public place and
the risk faced by the workman is not due to his employment but to his being on the spot
as a member of the public, the employer will be liable to pay compensation only if the
presence of the workman on the spot can be found traceable to an obligation imposed
upon him by the employer.

Conclusion

Notice and Claim of the accident [10]

05, 04, 02, 01

Introduction: Under S. 10, a workman who is injured by an accident must give a notice
of it in writing. This has to be done as soon as practicable after the occurrence of the
accident. No hard and fast rule can be laid down in regard to what is meant by "as soon as
practicable". It depends upon the individual circumstances. A notice given two months
after the accident may, if the victim of accident is continuously in the hospital, beheld to
be one given as soon as practicable. The notice must contain:
the name and address of the workman injured;
the date of the accident;
the cause of the injury.

The notice has to be served upon the employer or on anyone of the several employers or
upon any person who is responsible to the employer for the management of the branch of
trade or business where the injured workman was employed. It may be delivered to the
person concerned by hand or sent by registered post addressed to the residence or any
office or place of business of the person to whom it is addressed. The State Government
has been empowered to direct any prescribed class of employers to maintain at their
premises where workmen are employed a notice book in the prescribed form. Such a
notice should be readily accessible at all reasonable times to any person acting bona fide
on behalf of the injured workman. An entry in this book would be considered to be
sufficient notice of the accident to the employer.

Any claim for compensation must be made within two years of the occurrence of the
accident or in case of death, within two years from the date of death.

WORKMEN’S COMPENSATION ACT, 1923 37

LABOUR LAW PALLAVI BHOGLE

Where the accident results in any physical or bodily injury, the date of a accident can be
easily ascertained. In case of occupational diseases specified in Schedule III it would not
be possible to know exactly the date on which the disease contracted. It has, therefore,
been provided that in the case of an occupational disease, the first day of the period
during which the workman was continuously absent from work in consequence of the
contracting of such a disease, should be considered as the date of the accident.

In case of partial disablement due to the contracting of any occupational disease which
does not compel such workman to absent from duty, the period of two years for the
purposes of making any claim for compensation shall be counted from the day the
workman gives notice of the disablement to his employer.

Where a person, who has been in employment for a continuous period specified under
Section 3(2) in respect of that employment, ceases to be so employed develops symptoms
of an occupational disease peculiar to that employment, within two years of the cessation
of employment, the accident shall be deemed to have occurred on the day on which the
symptoms were first detected.

The object of giving such a notice is to enable the employer to check the fact of the
accident having occurred to the workman in the course of his employment and also to
enable the employer to take such steps as he may think fit to mitigate the consequence in
the accident.

No claim for compensation shall be turned down want of defect or irregularity in the
notice in the following cases:
(a) Where the claim for compensation is made in respect of the death of the workman
resulting from an accident which occurred on the employer’s premises or at any place
under the employer's control at the time of the accident and the workman died on
such premises or at place or premises belonging to employer or died without having
left the vicinity of the premises or place where the accident occurred;
(b) Where the employer or anyone of the several employers or any person responsible to
the employer for the management of any branch of the trade or business in which the
injured workman was employed had knowledge of the accident from any other source
at or about the time it occurred.

The Commissioner for Workmen's Compensation is empowered to condone any failure to

give notice or prefer the claim if he is satisfied that the failure had been for sufficient
cause. He may then proceed on to entertain and decide any claim to compensation. In
justification of the power given to the Commissioner to condone any failure to give
notice or prefer a claim, the Royal Commission on Labour in India had observed: "The
dependants of a deceased workman in many cases lived hundreds of miles away from the
industrial area and too often they communicated only at long intervals with workman and
that on occasions they must be ignorant of his whereabouts and may not hear of his death
until sometime had elapsed."

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LABOUR LAW PALLAVI BHOGLE

It was with a view to ensure against such difficulties that the notice of fatal accidents are
to be given by the employer.

Conclusion

Medical examination [5]

Dec 03, 02, 01, 01

Introduction: Under section 11, a workman who is injured and has given notice of an
accident to the employer shall submit himself for medical examination if offered by the
employer.

Any such offer made by the employer must be free of charge and made within three days
from the time at which service of the notice has been effected. So also any workman who
receives half monthly payment shall submit himself for medical examination if and when
required by the employer. Any workman shall be required to submit himself for
examination by a medical practitioner only in accordance with the rules made under this
Act and at such intervals as prescribed by these rules.

If a workman refuses to submit himself for examination by a qualified medical

practitioner as required either by the employer or the Commissioner, his right to
compensation shall be suspended for the period of refusal or obstruction. In these cases
he will be entitled to full compensation only if he can show that he was for some
sufficient cause prevented from submitting himself. If any such refusal or obstruction by
the workman leads to the aggravation of injury he shall be entitled to compensation for
only such disablement which would have resulted if the injury would have been properly
treated. Difficulty arises where the medical treatment results in deterioration of the injury.
If the intervening act is the direct or foreseeable consequence of the defendant's act then
the doctrine novus actus interveniens does not apply, nor does it apply where the
intervening actor is not fully responsible or if his act is intentionally procured by the
plaintiff.

If a workman before the expiry of the period within which he is liable under sub-section
(1) to be required to submit himself for medical examination voluntarily leaves without
having been so examined the vicinity of the place in which he was employed, his right to
compensation shall be suspended until he returns and offers himself for such
examination. Such medical examination has to take place within seventy-two hours after
the workman has offered himself or medical examination.

Where the workman whose right to compensation has been suspended under sub-sections
(2) and (3) of Section 11, dies without having submitted himself for medical examination

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LABOUR LAW PALLAVI BHOGLE

as required, the Commissioner may, if he thinks fit, direct the payment of compensation
to the dependants of the deceased workman. But no compensation in such cases shall be
payable in respect of the period of suspension and if the period of suspension commences
before the expiry of the waiting period referred to in clause (d) of sub-section (1) of
Section 4, the waiting period shall be increased by the period during which the
suspension continues.

The aggravation of any injury shall, not be taken into consideration in the assessment of
compensation in the following cases under Section 11(6):
(i) where an injured workman has-refused to be attended by a qualified medical
practitioner whose services have been offered to him by the employer free of
charge; or
(ii) where the injured workman has deliberately disregarded the instructions given
by a qualified medical practitioner:

Provided it is proved that such refusal, disregard or failure was unreasonable in the
circumstances of the case.

In such a case compensation would be paid for injury caused by accident at the original
stage and any aggravation shall be ignored. Where the injury was aggravated due to the
fault of the workman of ignoring medical instructions, he would suffer for it and shall not
get compensation for aggravated injury. Under Section 11 of the Act the onus lies upon
the employer to prove that he had offered services of a medical practitioner free of charge
to workman and that in spite of such offer the workman had refused to take treatment of
such medical practitioner or that such treatment was taken but the workman had
disregarded the instructions of such medical practitioner.

The purpose of medical examination is to prevent a dishonest worker having an

opportunity of concealing the nature of his injury from any impartial observer and the
certificate or evidence given by the employer's doctor cannot, however be considered to
be conclusive. In case the employer doubts the bona fide of the workman, he may get him
examined by a competent medical practitioner free of cost but he cannot demand of the
worker a medical certificate.

Conclusion

COMMISSIONERS

Workmen’s Compensation Commissioner [10]

Dec 04

WORKMEN’S COMPENSATION ACT, 1923 40

LABOUR LAW PALLAVI BHOGLE

Explain the powers of the authority to hear workmen’s compensation claims.

[6]
02

State and explain the powers of the Workmens Compensation Commisioner

under the Workmen’s Compensation Act, 1923. [10]
Oct 98

Discuss the functions of the Workmen’s Compensation under the Workmen’s

Compensation Act, 1923. [10]
Dec 99

Introduction: Section 19 talks of reference to a Commissioner. Any Commissioner of an

area concerned shall have the power to decide and settle all questions as to the liability of
any person to pay compensation. In default of an agreement between the parties to arrive
at a conclusion in respect of any claim to compensation, the Commissioner has
jurisdiction to decide inter alia,
(i) The question as to whether a person injured is a workman.
(ii) The liability of .any person to pay compensation.
(iii) The amount and duration of compensation.
(iv) The nature or extent of disablement.

Section 19 provides for settlement by the Commissioner of any question regarding

liability of any person to pay compensation or the amount or duration of compensation, in
default of any agreement, if such question arises in any proceeding under the Act. The
question does not have the effect of suspending the liability of an employer to pay
compensation under Section 3 till after the settlement contemplated under Section 19.

The Commissioner has jurisdiction to decide the loss of earning capacity of an injured
workman. The medical evidence, being only opinion, would not be decisive of the
question and that the Commissioner had independently to give a finding as to extent of
the loss of the earning capacity. If with the consent of the parties, the Commissioner
refers any matter for decision of the Medical Board or some other agency, it should be
held that he acted extra cur sum curiae and the parties would be bound by the opinion of
the reference. None of the two parties would have a right to complain if the opinion goes
against him. In such a case there would be no right to appeal. Apart from the objection to
the assessment of the loss of earning capacity by the Medical Board, there is no other
objection to the assessment of compensation by the Commissioner. A Commissioner has
no power to set aside a previous order for compensation made by him under a mistake.
No addition or alteration shall be made to the judgment other than the correction of
clerical or arithmetical mistake arising from an accidental slip or omission.

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LABOUR LAW PALLAVI BHOGLE

Section 19 refers to a liability arising by virtue of this Act. The liability adjudicated upon
by Claims Tribunal under the Motor Vehicles Act is a liability founded in tort and thus
falls outside the scope of this section.

The Commissioner acting under the Workmen's Compensation Act is a tribunal and not a
Civil court. He constitutes an independent tribunal. His function is to judge and decide
and not merely to enquire and advise and in judging and deciding the matters before him,
he has to proceed judiciously and not arbitrarily. .

In Oriental Fire and Gen. Ins. Co. Ltd. v. Moola Singh, the compensation awarded by
Motor Accidents Claims Tribunal was sought to be recovered from Insurance Company
and objection to decree was raised by the Insurance Company before the Commissioner
on the ground that its liability under the Act was limited to Rs. 3000/- and that it was not
liable to pay Rs. 6000/-. It was held that the Insurance Company was entitled to raise
objection although it was not a party to decree.

Appointment of Commissioner [Section 20]

Far the purposes of deciding the question of the liability of any person to pay
compensation under the Act, the State Government has been authorized to appoint any
person as the Commissioner Workmen’s Compensation. The appointment must be
notified by the State Government in the Official Gazette. The area of jurisdiction of a
Commissioner must be specified by the Government by such notification. If more than
one Commissioner have be appointed far the same area, the State Government may by
general or special order regulate the distribution of business between them. The
Commissioner may take the assistance of the services of any person who is an expert in
the matter referred to him for decision. Any such person shall assist the Commissioner in
holding the inquiry. Every Commissioner shall be deemed to be a public servant within
the meaning of this word under the Indian Penal Code. Now the question is how far the
Commissioner shall take cognizance of any opinion expressed by the expert, whom he
himself called for assistance. Where the Commissioner asked a medical expect to assist
him in the adjudication, the examination by such expert took place in the presence of the
Commissioner, the opposite party, find the applicant's pleader, but applicant's pleader not
only did not raise any objection as to the procedure, but actually acquiesced to, it was
held that the applicant could not raise any objection in appeal.

Two modes are prescribed by the Act far the assessment of compensation. One is the
award by the Commissioner and the other by an agreement between the parties.

Powers and Procedure of Commissioners [Section 23]

The Commissioner, is authorized by Section 23 of the Act to exercise powers under the
Civil Procedure Code, 1908, for the following purposes:
1. For the purposes of taking evidence on oath,

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LABOUR LAW PALLAVI BHOGLE

2. For enforcing the attendance of witnesses, and

3. For compelling the production of documents and material objects.

The Commissioner is deemed to be a Civil Court for purposes of Section 195 and of
Chapter XXVI of Criminal Procedure Code, 1973. The Commissioner may vary the
procedure prescribed by the rules and orders as may be necessary or proper to adopt them
in the matter before him. He may also ignore such rules of procedure provided he is
satisfied that the interest of the parties will not thereby be prejudicially affected.

The effect of Section 23 is that only certain provisions of Civil Procedure Code and not
others have been made applicable to proceeding under the Act. Order 22 of the CPC
which deals with legal representation in cases where parties to proceeding die is
conspicuous by its absence from Rule 14 and lends further strength to the conclusion that
such representation is not contemplated in, cases falling under the Compensation Act.

A Commissioner acting under the Act has no jurisdiction or power to issue a commission
to examine a witness and the answers given by the witness to interrogatories furnished to
him cannot be received as legal evidence, more particularly so, when the answers are not
recorded before any court or any officer examining the witness on commission and are
not given on oath. Although it is not obligatory but the Commissioner may, if he thinks it
necessary, hold a preliminary inquiry and if he feels that there is no case of the relief
claimed he may dismiss the application with a brief statement of his reasons for so doing.

Where an application for compensation was dismissed in default and later on restored
after showing good cause the applicant was entitled to cross-examine the witness
examined by the opposite party in his absence. The Commissioner's order that the
applicant was entitled to take part in the proceedings only from the point at which the
application for restoration was allowed was held to be wrong.

It was held in Surendra Kumar Shanna v. State of V.P. and another, that Commissioner
for Workmen's Compensation should be person having legal background. In support of
this order various reasons were given some of them were:
(i) In view of Article 50 of the Constitution of India, persons trained in having
knowledge of relevant rules would inspire confidence in the public; and
(ii) Under Section 23 of the Workmen's Compensation Act, the Commissioner has
powers of a. civil court and was deemed to be such for purposes of Section
195 of the Code of Criminal Procedure, 1973.

Conclusion

Other Questions

Detail the procedure laid down in the Workmen’s Compensation Act, 1923 regarding the
mode and method of paying compensation. [10]

WORKMEN’S COMPENSATION ACT, 1923 43

LABOUR LAW PALLAVI BHOGLE

98

Discuss the meaning of the term Doctrine of added peril. [10]

03, 03 (AE – 965), ?, 95

WORKMEN’S COMPENSATION ACT, 1923 44

LABOUR LAW PALLAVI BHOGLE

The Employees State Insurance Act, 1948

PRELIMINARY

Examine the provisions with regard to Dependant [5]

Oct 98

Introduction: The purpose of the Employees’ state Insurance Act, 1948 is not to provide
solatium to a relative of a deceased insured person but to make good the actual loss which
he or she has suffered. Whether a relative of the deceased is dependant or not, is the
question or fact to be decided in relation to particular circumstances of each case.
Normally when the earning of the deceased workman was hardly sufficient for his
maintenance and no balance was left which would contribute to the family fund the
parent cannot be said to be a dependent. In a later case it has been pointed out that in case
of poor working families, particularly those living jointly, all the earnings come into a
common pool and it may often happen that the common pool is actually quite insufficient
to maintain the members at a bare standard of existence. But it is extremely difficult to
lay down any hard and fast rule about what is sufficient for the maintenance of an
individual person and to work out an excess out of his earnings available for the father,
mother, and the other members of his family to enjoy. In case of those relatives who have
to be in fact wholly or in part dependent upon the earning of the deceased insured person,
they must be so dependent at the time of his death.

Dependant [S. 2 (6-A)]

As per S. 2 (6-A), there are three categories of dependants under the Act. In the first
category are included:
1. a widow;
2. a minor legitimate or adopted son;
3. an unmarried legitimate or adopted daughter;
4. a widowed mother.

For the above dependants it is not necessary that they should in fact be dependant upon
the earnings of the deceased insured person.

For the dependants included in the second category, it is necessary that they must in fact
be wholly dependant upon the earnings of the insured person at the time of his death. The
relatives are:
1. a legitimate or adopted son, who has attained the age of 18 years and is infirm;
2. a legitimate or adopted daughter who has attained the age of 18 years and is
infirm.

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LABOUR LAW PALLAVI BHOGLE

Dependants of the third category may claim benefit under the Act provided they are
wholly or in part dependant on the earnings of the deceased insured person at the time of
his death. These relatives are as follows:
1. a parent other than a widowed mother;
2. a minor illegitimate son,
3. unmarried illegitimate daughter,
4. legitimate daughter if married and minor,
5. adopted daughter if married and minor,
6. illegitimate daughter if married and minor,
7. legitimate daughter if widowed and minor,
8. adopted daughter if widowed and minor,
9. illegitimate daughter if widowed and minor,
10. a minor brother,
11. an unmarried sister,
12. a widowed sister if a minor,
13. a widowed daughter-in-law,
14. a minor child of a predeceased son,
15. a minor child of a predeceased daughter where no parents of the child is alive,
16. a paternal grand-parent if no parent of the insured person is alive.

Conclusion

Explain ‘Employment Injury’. [6]

Dec 05, 03, Dec 02

Introduction: The concept of employment implies three essential elements:

• Employer
• Employee
• The contract of service.
The employment is a contract of service between the employer and employee whereunder
the employee agrees to serve the employer subject to his control and supervision.
Employment is not confined to actual work or place of work. It extends to all things,
which the workman is entitled by the contract of employment expressly, or impliedly to
do.

Employment Injury [S. 2(8)]

The following are the ingredients of an Employment Injury:

1. The injury must be personal to an employee.
2. The injury must be caused by an

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LABOUR LAW PALLAVI BHOGLE

(i) accident; or
(ii) occupational disease.
3. The accident must arise out of and in the course of employment.
4. The employment must be insurable.

In Rajappa v. Employees' State Insurance Corporation, an employee of the KIMCO was

attacked by some persons and his left hand was cut off while he was on his way to home
after finishing the work in the factory. The corporation met all the expenses when he was
under treatment. It was held that where employment is not a contributing factor to create
any incident or accident, or to accelerate causes of death or personal injury of employee,
a claim cannot be made for compensation under the Act. The condition precedent to a
liability under the Act is causal connection or association between the employment and
injury caused by accident. The doctrine of notional extension has to be applied to the
factual situation pertaining to the particular case. In the present case there is no
relationship between the assault causing injury to the employee and the employment.

In Sheela v. E. S. I. Corpn. an employee of M/s. Electronic Product of India, Chandigarh

left his house at about 8.30 a.m. to join his duties at 9 a.m. He died at bus-stand while
waiting for the local bus. It was held that the employee died while he was going to his
place of work. the theory of notional extension will apply and the death occurred in the
course of employment.

Conclusion

Examine the provisions with regard to Employee [5]

Oct 98

Introduction: The definition of an employee as given under section 2(9) in the Act is
very comprehensive. The following are the ingredients of the definition of an 'employee'
under the Act:
1. The employment of the person must be for wages and it should be
(i) in an establishment;
(ii) in a factory;
(iii) in connection with the work of the factory including any work
connected with:
(a) administration of the factory or establishment or any part,
department or branch thereof;
(b) purchase of raw materials for the factory or establishment;
(c) distribution or sale of the product of a factory or establishment;

2. The employee also includes any person engaged as an apprentice, not being an
apprentice engaged under the Apprentices Act, 1961, or under the standing order
of the establishment.

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LABOUR LAW PALLAVI BHOGLE

3. The employee must be employed in any factory or establishment to which the Act
applies. The employment may be:
(i) directly with the principal employer;
(ii) by or through an immediate employer;
(iii) lent or let on hire by the principal employer.

4. In case of an employee directly employed by the principal employer, the

employment must be on any work of the factory or establishment or any work
(i) which is incidental or preliminary to;
(ii) connected with the work of the factory or establishment.
It is immaterial that the work is done in the factory or establishment or elsewhere.

5. In case of an employee, employed by or through an immediate employer, the

employment must be
(i) in the premises of the factory or establishment;
(ii) under the supervision of the principal employer or his agent on work
which is:
(a) ordinarily part of the work of the factory or establishment;
(b) preliminary to the work carried on in the factory or
establishment;
(c) incidental to the purpose of the factory or establishment.

6. In case an employee whose services are lent or let on hire to the principal
employer, the letting on hire must be by the person who has entered into a
contract of service with the person whose services are so lent or let on hire. The
employment of such a person by the principal employer must be in or in
connection with the work of a factory or establishment to which this Act applies.

7. The following are not employees:

(i) any member of the Indian Naval, Military or Air Force;
(ii) any person so employed whose wages (excluding remuneration for
overtime work) exceed such wages as may be prescribed by the
Central Government. Overtime pay shall not be included in wages. In
the term ‘remuneration’, employer's contribution to Provident Fund is
not included.

There is an exception to the above rule; namely an employee whose wages exceed such
wages as may be prescribed by the Central Government at any time after (and not before)
the beginning of the contribution period shall continue to be an employee until the end of
that period.

The definition of an employee under the Act has a wider meaning and it covers persons
who work outside the business premises but whose duties are connected with the
business. It also covers employees who are paid daily wages or employed on part time

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LABOUR LAW PALLAVI BHOGLE

wages such as persons employed by a firm carrying on business of playing music on

occasions like marriage, etc.

In Tara Chand Mohan Lal v. E.S.I. Corporation, labourers were working for a
considerable period in a factory, dealing in production of mustard oil and dal. These
labourers were employed through Sardars who were the immediate employer and the firm
Mohan Lal was the employer. They were working under the supervision of the principal
employer even if they were supplied, by the Sardars. These labourers were held to be
‘employees’ within the meaning of Section 2(9)(1) of the Act as they were directly
employed for wages by the principal employer in connection with the normal work of the
factory.

Conclusion

Manufacturing process [10]

02

Introduction: Manufacturing process is defined in the Factories Act, 1948.

Manufacturing process is a very wide term. It merely refers to the particular business
carried on and does not necessarily refer to the production of some article. As defined by
the Factories Act, manufacturing process means any process for:
(i) making, altering, repairing, ornamenting, 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;
(ii) pumping oil, water or sewage;
(iii) generating, transforming or transmitting power;
(iv) composing types for printing, by letter press, lithography, photogravure or other
similar process or book binding;
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or
vessels.

In Osmania University v. Regional Director, E.S.I.C. Andhra Pradesh, the question was
whether the provisions of Employees' State Insurance Act. 1948 are applicable in respect
of the employees working in the Department of Publications and Press of the Osmania
University. It was held that the said Department is engaged in the printing of text books,
journals, forms, stationary and other items and the activities are a manufacturing process
and therefore ‘factory’ within the meaning of Section 2(12) of the Act justifying the
application of the Act.

As per section 2 (14-AA) of the Employees’ State Insurance Act, 1948, a Manufacturing
Process is said to have the meaning assigned to it in the Factories Act, 1948.

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LABOUR LAW PALLAVI BHOGLE

It was held in Dessai Metal Works v. E.S.I.C & another that bringing boulders from one
place and crushing them into various smaller sizes with a view to its use and sale,
amounts to manufacturing process.

Conclusion

Explain the provisions relating to Partial and total disablement. [5]

Oct 2K

Introduction: The provisions of partial and total disablement are given under section
2(15-A) and 2(15-B) respectively.

Permanent Partial Disablement [S. 2(15-A)]

The definition given in the Act has the following ingredients:

1. partial disablement must be of a permanent nature;
2. the disablement must reduce the earning capacity of an employee;
3. reduction of earning capacity must be in every employment which he was
capable of undertaking at the time of the accident resulting in the
disablement.

What is permanent partial disablement is a question of fact. But every injury specified in
Part II of the Second Schedule shall be deemed to result in permanent partial
disablement. The test to determine permanent partial disablement has been discussed in
detail in the Workmen's Compensation Act.

The Courts have to see that the earning capacity of the workman has been reduced in
every employment which he was capable of undertaking at the time of accident and not
merely the particular employment in which he was engaged at the time of accident
resulting in disablement. The liability of the employer is not limited to cases of incapacity
to work but it extends to incapacity for work. If an injury to a workman caused by an
accident did not reduce his capacity to work but stamped him with such a marked
physical deficiency as would dissuade the likely employers from employing him, he
would be deemed incapacitated for work in the sense that his earning capacity would
clearly be altogether destroyed.

Permanent Total Disablement [S. 2(15-B)]

The definition contains the following ingredients:

1. the disablement resulting from injury must be permanent; and

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LABOUR LAW PALLAVI BHOGLE

2. the disablement must be of such a nature as renders the workman incapable for all
work which he was capable of performing at the time of accident resulting in such
disablement;
3. every injury specified in Part I of Schedule II shall be deemed to result in
permanent total disablement;
4. it shall also be deemed to result from any combination of injuries specified, in
Part II of Second Schedule where the aggregate percentage of the loss of earning
capacity, as specified against those injuries, amounts to one hundred per cent or
more.

In this case also ‘incapacity for work’ is not the same thing as ‘incapacity to work.’ There
is incapacity for work when a man has a physical defect, which makes his labour
unsaleable in any market reasonably accessible to him. The disablement is said to be
permanent and total if it results in such permanent loss of earning capacity of the
employee as makes him incapable for all work which he was capable of doing at the time
of accident. But if the disablement results only in the reduction of the earning capacity it
is only partial, not total disablement. The use of preposition ‘for’ makes it sufficient clear
that the incapacity for work as referred thereto is not merely physical incapacity to work
but incapacity to secure employment. Therefore, whatever may be the physical power of
the employee to do a duty in any sphere of activity, if there is no earning power
remaining in the workman so as to persuade an employer to offer him any employment
the incapacity is complete.

Conclusion

CORPORATION, STANDING COMMITTEE AND MEDICAL

BENEFIT COUNCIL

Explain the composition, powers and duties of E.S.I Corporation. [10]

Dec 05, Dec 02, Dec 02, 2K

Introduction: Section 3 of the Act provides that the Employees' State Insurance
Corporation shall be established by the Central Government by notification in the Official
Gazette. The Corporation shall be established with effect from such date as may be
notified by the Government. The function of the Corporation is the administration of the
Scheme of Employees' State Insurance in accordance with the provisions of this Act.

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LABOUR LAW PALLAVI BHOGLE

The following are main features of the Corporation:

1. It shall be a body corporate by the name of Employees' State Insurance
Corporation.
2. The Corporation shall have perpetual succession;
3. It shall also have a common seal.
4. It can sue and be sued in its own name.

Constitution of Corporation [Section 4]

The following office bearers and members shall constitute the Corporation:
(a) A Chairman to be appointed by the Central Government.
(b) A Vice-Chairman to be appointed by the Central Government.
(c) Not more than five persons to be appointed by the Central Government.
(d) One person each representing each of the States in which this Act is in force to be
appointed by the State Government concerned.
(e) One person to be appointed by the Central Government to represent the Union
Territories.
(f) Ten persons representing employers to be appointed by the Central Government
in consultation with such organizations of employers as may be recognized for the
purpose, by the Central Government.
(g) Ten persons representing employers to be appointed by the Central Government
in consultation with such organizations of employees as may be recognized for
the purpose, by the Central Government.
(h) Two persons representing the medical profession to be appointed by the Central
Government in consultation with such organizations of medical practitioners as
may be recognized for the purpose by the Central Government.
(i) Two members of the House of the People (Lok Sabha) elected by the members of
that House, and one member of the Council of State (Rajya Sabha) elected by the
members of that house.
(j) The Director General of the Corporation shall be ex-officio member of the
Corporation.

Insurance Medical Officer under Employees’ State Insurance Scheme is not an employee
of the State Government.

Powers of the Standing Committee [Section 18]

The Standing Committee is constituted to administer the affairs of the Corporation. It has
to function in accordance with the regulations framed by the Corporation. Its work and
activities are controlled and supervised by the Corporation. It has the following powers:
1. Power of administration of the Corporation, subject to the general
superintendence and control of the Corporation.
2. Subject to the general control of the Corporation it may exercise any of the
powers and perform any of the function of the Corporation.
3. It shall submit for consideration and decision of the Corporation all such cases
and matters as may be specified in the regulations made in this behalf.

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LABOUR LAW PALLAVI BHOGLE

4. The Standing Committee may in its discretion, submit any other case or matter for
the decision of the Corporation.

Corporation's Power to promote measures for health etc., of insured persons

[Section 19]

Section 19 of the Act empowers the Corporation to take steps for the benefit of insured
persons. These measures permitted to be taken by the Corporation tliC in addition to any
benefit scheme specified in this Act. These are as follows:
1. The Corporation may promote measures for the improvement of the health and
welfare of insured persons.
2. It shall promote measures for the reabilitation and re-employment of insured
persons who have been disabled or injured.
3. The Corporation may incur expenses in respect of such measures from its funds.
The limit of the expenditure shall be prescribed by Central Government.

In the Employees' State Insurance Corporation v. C. Saseendrum, the Supreme Court

held that the direction of the Employees' State Insurance Court that the appellant was
bound to find suitable employment to respondent workman disabled on account of
employment injury was in accordance with Section 19 of the Act and could not be
challenged. The Court however also stated that the direction had to be given effect to in
terms of a scheme already framed under Section 19 of the Act.

Duties of Medical Benefit Council [Section 22]

The Medical Benefit Council shall advise the Corporation and the Standing Committee
on matters relating to the administration of medical benefit, the certification for purposes
of the grant of benefits and other connected matters.

The Medical Benefit Council shall have such powers and perform such duties of
Investigation as may be prescribed in relation to complaints against medical practitioners
in connection with medical treatment and attendance.

The Medical Benefit Council shall perform such other duties in connection with medical
treatment and attendance as may be specified in regulations.

Conclusion

Medical Benefit Council [8]

Dec 03, 98

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LABOUR LAW PALLAVI BHOGLE

Introduction: Section 10 of the Act provides for the constitution of a Medical Benefit
Council by the Central Government. The Medical Benefit Council shall consist of the
following members and office-bearers:
1. The Director General Health Services shall be ex-officio Chairman.
2. The Medical Commissioner of the Corporation shall be ex-officio member of the
Council.
3. The following appointments shall be made by the Central Government to the
Medical Benefit Council:
(a) a Deputy Director-General, Health Services,
(b) three members representing employers to be appointed in consultation
with such organizations of employers as may be recognized for the
purpose by the Central Government,
(c) three members representing employees to be appointed in consultation
with such organizations of employees as may be recognized for the
purpose by the Central Government,
(d) three members representing the medical profession to be appointed in
consultation with such organizations of medical practitioners as may be
recognized for the purpose, by the Central Government.
No less than one of these members shall be a woman.
4. One representative from every State, other than the Union Territories, in which
this Act is in force shall be appointed by the State Government concerned.

Tenure of the members of the Medical Benefit Council

According to Section 10(2) the representatives of employers, employees and medical

profession in the Medical Benefit Council, shall hold office for a period of four years
from the date on which their appointment is notified. Any such member of the Medical
Benefit Council will continue to hold office even after the expiry of his term of four years
until the appointment of his successors is notified. Section 10(3) provides that the Deputy
Director General Health Services shall hold office during the pleasure of the Central
Government. Representatives of State shall hold office during the pleasure of their
respective State Government.

Duties of Medical Benefit Council [Section 22]

The Medical Benefit Council shall advise the Corporation and the Standing Committee
on matters relating to the administration of medical benefit, the certification for purposes
of the grant of benefits and other connected matters.

The Medical Benefit Council shall have such powers and perform such duties of
Investigation as may be prescribed in relation to complaints against medical practitioners
in connection with medical treatment and attendance.

The Medical Benefit Council shall perform such other duties in connection with medical
treatment and attendance as may be specified in regulations.

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LABOUR LAW PALLAVI BHOGLE

Resignation of membership [Section 11]

Any member of the following bodies may resign his office by notice in writing to the

Central Government and the seat shall be vacant only on acceptance of the resignation by

the Government:

(1) Employees' State Insurance Corporation.

(2) Standing Committee.
(3) Medical Benefit Council.

Cessation of Membership [Section 12]

Section 12 of the Act deals with the cessation of membership of the Corporation, the
Standing Committee, or the Medical Benefit Council. Any member who fails to attend
three consecutive meetings shall cease his membership of Corporation, Standing
Committee and the Medical Benefit Council. The said bodies may, subject to rules made
by the Central Government, restore the membership of any member.

Any representative of the employers, employees or medical profession, in the

Corporation, the Standing Committee and Medical Benefit Council may be declared by
the Central Government to have ceased his membership if he has in the opinion of the
Government ceased to represent his class. Any such declaration may be made by the
Central Government by a Gazette notification and shall be effective from the date
specified in the notification.

Any representative of Parliament to the Corporation shall cease to be its member when he
ceases to be a member of Parliament.

Disqualification [Section 13]

Section 13 of the Act lays down disqualification for membership or election to the
Corporation, the Standing Committee or the Medical Benefit Council. No person can be
chosen as or continue to be member of the above bodies if:
1. he is declared to be of unsound mind by a competent court; or
2. he is a discharged insolvent; or
3. he has directly or indirectly any interest, in a subsisting contract with, or in any
work being done for the Corporation. It is immaterial that he has such interest by
himself or by his partner. But this rule shall not apply to a medical practitioner or
a share-holder (not being a Director) of a company; or
4. he has been convicted of an offence involving moral turpitude whether such
conviction has been before or after the commencement of this Act.

The test for determining moral turpitude as laid down in Mangali v. Chakkilall is whether
the act leading to a conviction was such as could shock the moral conscience of the

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LABOUR LAW PALLAVI BHOGLE

society in general whether the motive which led to the act was a base one and whether on
account of the act having been committed the perpetrator could be considered to be a
depraved character or a person who was to be looked down by the society. Moral
turpitude is clearly an ingredient of the offence, where it consists of an act of giving false
information knowing it to be false in order to injure some one else.

Conclusion

FINANCE AND AUDIT

Employees State Insurance Fund [8]

Dec 03, 99

Introduction: Section 26 talks of the Employees Insurance Fund. All contributions paid
under the Employees' State Insurance Act and all other moneys received on behalf of the
Corporation shall be paid into the Employees' State Insurance Fund. The Employees'
State Insurance Fund shall be held and administered by the Corporation for the purposes
of this Act.

According to sub-section (2) the Corporation may accept grants, donations, and gifts
from the Central or any State Government, local authority, or any individual or body
whether incorporated or not, for all or any of the purposes of this Act.

All moneys accruing or payable to the Employees' State Insurance Fund shall be paid into
the Reserve Bank of India or such other bank as may be approved by the Central
Government, credited to the Employees' State Insurance Fund. This rule is subject to the
provisions of this Act and to any rules or regulations made under the Act.

Account of Employees' State Insurance Fund shall be operated on by such officers as

may be authorized by the Standing Committee with the approval of the Corporation.

Expenses from the fund [Section 28]

Section 28 of the Act deals with various purposes on which the fund may be spent. The
expenses detailed in this section are subject to the provisions of this Act and rules made
by the Central Government. The Employees' State Insurance Fund shall be spent for the
following purposes:
1. Payment of benefits and provision of medical treatment and attendance to insured
persons in accordance with the provisions of this Act;
2. Provisions of medical benefit to the families of the insured persons where such
benefit is extended to their families;

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LABOUR LAW PALLAVI BHOGLE

3. Defraying the charges and costs in connection with the medical treatment and
attendance to insured persons and their families where the benefit extends to
them;
4. Payment of fees and allowances to the members of the Corporation, the Standing
Committee and the Medical Benefit Council, the Regional Boards, Local
Committees and Regional and Local Medical Benefit Council;
5. Payment of salaries, leave and joining time allowance, traveling and
compensatory allowances, gratuities and compassionate allowances, pensions,
contributions to provident or other benefit fund of officers and servants of the
Corporation;
6. Meeting the expenditure in respect of officers and other service set up for
purposes of giving effect to the provisions of this Act;
7. Establishment and maintenance of hospitals, dispensaries and other institutions
and the provisions of medical and other ancillary services for the benefit of
insured person. These expenses can be incurred for the benefit of the families of
the insured persons, where such benefit extends to them;
8. Payment of contributions to any State Government, local authority or any private
body or individual towards
• the cost of medical treatment and attendance provided to insured persons
and to their families (where the benefit extends to them)
• cost of any building and equipment in accordance with any agreement
entered into by the Corporation;
9. Defraying the cost (including all expenses) of auditing the account of the
Corporation.
10. Defraying cost of the valuation of its assets and liabilities;
11. Defray the cost (including all expenses) of the Employees' State Insurance Courts
set up under this Act;
12. Payment of any sums under any contract entered into for the purpose of this Act
by the Corporation or the Standing Committee or by any officer, duly authorized
by the Corporation or the Standing Committee in that behalf;
13. Payment of sums under any decree, or award of any Court or Tribunal against the
Corporation or any of its officers or servants for any act done In the execution of
his duty or under a compromise or settlement of any suit or other legal proceeding
or claim instituted or made against the Corporation;
14. Defraying the cost and other charges of instituting or defending any civil or
criminal proceedings arising out of any action taken under this Act;
15. Defraying expenditure on measures for improvement of health and welfare of
insured persons. Expenditure on this head shall be permitted within the prescribed
limits only;
16. Defraying expenditure for the rehabilitation and re-employment of insured
persons who have been disabled or injured. The expenditure under this head is
also permitted only with the prescribed limits;
17. Such either expenses as may be authorized by the Corporation with the previous
approval of the Central Government

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LABOUR LAW PALLAVI BHOGLE

In Bai Malimabu v. State of Gujarat it was held by the Supreme Court that construction
of staff quarter for the employees of the dispensary and other employees working under
the State Insurance Scheme does not violate Section 28 of the Act. The Employees' State
Insurance Fund can be spent for such purposes under Clauses (i) and (iv) of Section 28
and if necessary by a special authorization by the Corporation In accordance with clause
(xii) of Section 28 because construction of quarters for employees is closely connected
with the working and implementation of this scheme.

Conclusion

BENEFITS

Explain in brief the various benefits available under the Employee’s State
Insurance Act, 1948. [16]
05, Dec 04, Oct 2K, ?

Sickness Benefit [10]

Dec 05, 04, Dec 02, Dec 02, Oct 97

Maternity Benefit [5]

06, 01, Dec 99, Oct 97

Disablement Benefit [5]

01, 97

Funeral Benefit [5]

2K, 99, 97

Introduction: Freedom from economic fear is the basis of all social security legislation.
The various benefits conferred by the Act attack this fear and seek to remove it.

The Act provides for 6 types of benefits to which the insured persons, their dependants or
certain other persons are entitled. These benefits are as follows:

1. Sickness benefit.

2. Maternity benefit.

3. Disablement benefit.

4. Dependants ‘benefit.

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LABOUR LAW PALLAVI BHOGLE

5. Medical benefit.

6. Funeral expenses.

All these benefits except the medial benefits are monetary benefits. The rules regarding
these benefits are contained in Ss. 46 to 58.

Sickness Benefit

It is in the form of periodical payment to any insured person, provided his sickness is
certified by a duly appointed medical practitioner, or any person having such
qualifications and experience as may be specified by regulations of the Corporation.
Where provision is made for sick leave by standing order, the employer cannot require
the employee to seek sickness benefit provided under this sub-section.

In Management of Diocesan Press v. Labour Court Madras, it was held that it was not
possible to accept the contention that since the employee has received sickness benefit
under the Act, he is not entitled to receive the wages for the period during which he was
on sick leave. But the employer is entitled to deduct the benefit received by the employee
from the leave salary payable to him.

A person shall be qualified to claim sickness benefit for sickness occurring during any
benefit period, if the contributions in respect of him were payable for not less than 78
days of the corresponding contribution period (Rule 55).

Sickness to be certified: An insured person shall be entitled to sickness benefit only if his
sickness is certified by a duly appointed medical practitioner or by any person possessing
such qualifications and experience as the E.S.I Corporation may specify in this behalf
(Sec. 46 (1) (a).

The daily rate of sickness benefit, in respect of the insured person during any benefit
period, shall be the standard benefit rate (as per Rule 54) corresponding to the average
daily wages of that person during the corresponding contributions period.

Example: An employee earns between Rs. 300 and Rs. 310 daily. The standard benefit
rate in his case is Rs. 155 per day. The daily rate of sickness benefit will also be Rs. 155.

The insured person shall not, however, be entitled to sickness benefit for an initial
waiting period of 2 days. But if the spell of sickness recurs within 15 days he shall be
entitled to recover the benefit even for the first 2 days in the second or subsequent spell.
The sickness benefit is also not to be paid to any person for more than 91 days in any two
consecutive benefit periods.

Maternity Benefit

This benefit in the form of periodical payment available to an insured woman. It is

payable in case of
1. confinement;

THE EMPLOYEES STATE INSURANCE ACT, 1948 59

LABOUR LAW PALLAVI BHOGLE

2. miscarriage;
3. sickness arising out of pregnancy;
4. premature birth of a child.

The grounds of eligibility of an insured woman to such payments must be certified by an

Insurance Medical Officer as provided by the regulations.

Maternity benefit (Sec. 50 a substituted by the Amendment Act, 1989) the qualification
of insured women to claim maternity benefit: The conditions subject to which such
benefit may be given, the rates rate and period thereof shall be such as may be prescribed
by the Central Government.

The provisions of Rule 56 are as follows:

Claim: An insured woman shall be qualified to claim maternity benefit for a confinement
occurring or expected to occur in a benefit period. If the contributions in respect of her
were payable for not less than 70 days in the immediately proceeding two consecutive
contribution periods.

To obtain maternity benefit, the insured women must get certificates of pregnancy, of the
expected date of confinement and of actual confinement and send them to the Local
Office to which she is attached.

Disablement Benefit

Any insured person shall be entitled to periodical payments if :

(i) he suffers from disablement;
(ii) the disablement results from an employment injury ; and
(iii) he sustained the employment injury as an employee under condition
mentioned in the Act.
The disablement benefit is payable only when the injury is duly certified by an Insurance
Medical Officer.

In Krishnan Kutty Nair v. P.B. V. Regional Director, E.S.l. Corporation and Another, the
appellant who was a covered employee under the E.S.l. scheme, met with an accident in
the course of his employment on June 15, 1990. The claimant suffered injury after he had
ceased to be an employee. Dismissing the appeal it was held that Section 46(c) of
Employees' State Insurance Act, 1948 specifically provides for two cumulative
conditions for its applicability:
(i) first the claimant must be an insured person; and
(ii) second that such an injury must be sustained when he was an employee.
Hence, when the injury had been sustained by the employee when he ceased
to be an employee, he would not be entitled to the benefit of disablement
though his contribution period and his status as insured person continues.

Dependents Benefit

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This benefit is available to such dependents, of an insured person who dies as a result of
an employment injury sustained as an employee, as are entitled to compensation under
this Act.

If an insured person dies as a result of an employment injury sustained as an employee,

his dependants who are entitled to compensation under the Act, shall be entitled to
periodical payments referred to as dependants’ benefits (Sec. 46 (1) (d). Whether or not
he was in receipt of any periodical payment or temporary disablement in respect of the
injury, dependants benefit shall be payable to his dependants (specified in Sec. 2 (6-A)
(i), (ia), and (ii) at such rates and for such periods and subject to such conditions as may
be prescribed by the Central Government (Sec. 52 (1)].

In case the insured person dies without leaving behind him the dependants as aforesaid,
the dependants’ benefit shall be paid to the other dependants of the deceased at such rates
and for such periods and subject to such conditions as may be prescribed by the Central
Government (Sec. 52 (2).

Medical Benefit

Medical benefit is available to an injured person or to a member of his family, were such
benefit is extended to the members of his family. This benefit is in the following forms:
• out-patient treatment and attachment in the hospital or dispensary; or
• by visits of the home of the insured
• as an in-patient in a hospital or other institution.

A person shall be entitled to medical benefit during any period for which contributions
are payable in respect of him or in which he is qualified to claim sickness benefit or
maternity benefit or is in receipt of such disablement benefit as does not disentitle him to
medical benefit under the regulations (Sec 56 (3)].

An insured person in respect of whom contribution ceases to be payable under the Act
may be allowed medical benefit for such period and of such nature as may be provided
under the regulations (Proviso 1 to Sec. 56 (3)].

Sometimes an insured person may cease to be in insurable employment account of

permanent disablement. In such a case he shall continue to receive medical benefit till the
date on which he would have vacated the employment on attaining the age of
superannuation had he not sustained such permanent disablement. This is however
subject to payment of contribution and such other conditions as may be prescribed by the
Central Government (Proviso 2 to Sec. 56 (3).

Funeral Expenses

In case the insured person dies, the expenditure on his funeral, known as funeral
expense’, shall be payable to the eldest surviving member of the family. Where the
deceased person did not have a family or was not living with his family at the time of his
death, the funeral expense shall be payable to the person who actually incurs the

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LABOUR LAW PALLAVI BHOGLE

expenditure on the funeral of the deceased insured person (Sec. 46 (1) (f). The amount of
such payment shall not exceed the amount as may be prescribed by the Central
Government. The claim for such payment shall be made be prescribed by the Central
Government. The claim for such payment shall be made within 3 months of the death of
the insured person or within such extended period as the E.S.I. Corporation or any officer
or authority authorized by it in this behalf may allow.

The amount of funeral expenses prescribed with effect from 1-10-2000 is Rs. 2,500.

Conclusion

Occupational Disease [10]

Dec 03

Introduction: The term ‘occupational disease’ is not defined in the Act. Occupational
diseases (along with the employments peculiar to them) have, however, been specified in
the Third Schedule to the Act. This Schedule corresponds exactly with the Third
Schedule to the Workmen’s Compensation Act, 1923.

According to S. 52.A the contracting of any occupational disease specified in the Third
Schedule to the Act shall, unless the contrary is proved, be deemed to be an ‘employment
injury’ arising out of and in the course of employment:

(a) if an employee employed in any employment specified in Part A of the Third

Schedule contracts any disease specified therein as an occupational disease
peculiar to that employment, or

(b) If an employee employed in the employment specified in Part B of that

Schedule for a continuous period of not less than six months contracts any
disease specified therein as an occupational disease peculiar to that
employment, or

(c) If an employee employed in any employment specified in Part C of that

Schedule for such continuous period as the E.S.I. Corporation may specify in
respect of each such employment, contracts any disease specified therein as an
occupational disease peculiar to that employment (Sec. 52-A (1)].

It should be noted that for occupational diseases mentioned in Part A, no period of

employment is necessary: but in case of any disease mentioned in Part B the insured
person must have served in the employment peculiar to that disease for a period of not
less than six months. In case of an occupational disease specified in Part C the period of
employment is such as is specified by the E.S.I. Corporation in respect of that
employment.

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LABOUR LAW PALLAVI BHOGLE

Where the Central Government or A State Government, as the case may be, adds any
description of employment to the employments specified in the Third Schedule to the
Workmen’s Compensation Act, 1923 by virtue of the powers vested in it under Sec. 3 (3)
of the said Act. The said description of employment and the occupational diseases as
peculiar to that description of employment shall be deemed to form part of the Third
Schedule (Sec. 52-A (2) (i). Without prejudice to this provision, the E.S.I. Corporation
after giving, by notification in the Official Gazette, not less than 3 months notice of its
intention to do so, by a like notification, add any description of employment to the
employments specified in the Third Schedule. It shall specify in the case of employments
so added the diseases which shall be deemed for the purposes of Sec. 52-A to be
occupational diseases peculiar to those employments respectively. Thereupon the
provisions of the Employees State Insurance Act shall apply as if such diseases had been
declared by this Act to be occupational diseases peculiar to those employments (Sec. 52-
A 2 (ii).

Sec 52-A (3) further provides that no benefit shall be payable to an employee in respect
of any disease unless the disease is directly attributable to a specific injury by a accident
arising out of and in the course of his employment (Sec. 52-A (3)].

The provisions of Sec. 51-A shall not apply to the cases to which Sec. 52-A applies (Sec.
52-A (4)].

Conclusion

ADJUDICATIONS OF DISPUTES AND CLAIMS

Explain the constitution, powers and procedures of the E.S.I Courts. [16]
06, Dec 04, 04, 03, 03, Dec 02, Oct 2K, Dec 99, 95

Introduction:

Constitution of Employee Insurance court [S. 74]

S. 74 enjoins upon the State Government to constitute, by notification in the Official

Gazette, an Employees’ Insurance Court for such local areas as may be specified in the
notification (Sec. 74 (1). The Court shall consist of such number of judges as the State
Government may think fit (Sec. 74 (2)].

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LABOUR LAW PALLAVI BHOGLE

Any person who is or has been a judicial officer or is a legal practitioner of 5 years’
standing shall be qualified to be a Judge of the Employees ‘Insurance Court (Sec. 74 (3)].

The State Government may appointed the same Court for 2 or more local areas or 2 or
more Courts for the same local area (Sec. 74 (4)]. Where more than one Court has been
appointed for the same local area, the State Government may, by general or special order,
regulate the distribution of business between them (Sec. 74 (5).

Jurisdiction or Matters to be decided by Employees’ Issuance Court [S. 75]

Adjudication of questions or disputes: The Employees’ Insurance Court shall decide the
following questions or disputes;

(a) whether any person is an employees within the meaning of this Act or
whether he is liable to pay the employee’s contribution, or

(b) the rate of wages or average daily wages of an employees for the purposes of
this Act, or

(c) the rate of contribution payable by a principal employer in respect of any

employee, or

(d) the person who is or was the principal employer in respect of any employee,
or

(e) the right of any person to any benefit and as to the amount and duration
thereof, or

(f) any direction issued by the E.S.I. Corporation under sec. 55-A on a review of
any payment of dependants’ benefit or

(g) any other matter which is in dispute-

(h) between a principal employer and he E.S.I. Corporation, or

(i) between a person and the E.S.I. Corporation or

(j) between an employee and a principal or immediate employer.

The dispute may be in respect of any contribution or benefit or other dues payable or
recoverable under the Act or any other matter required to be decided or which may be
decided by the Employees’ Insurance Court under the Act.

These questions or disputes shall be decided by the Employees’ Insurance Court in

accordance with the provisions of the Act, and subject to the provisions of Sec. 75 (2-A)
(Sec. 75 (1)].

Powers of Employees’ Insurance Court [S. 78]

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LABOUR LAW PALLAVI BHOGLE

The Employee’s Insurance Court shall have all the powers of a Civil Court for the
purposes of –

(a) summoning and enforcing the attendance of witness;

(b) compelling the discovery and production of documents and material objects,
and

(c) administering oath and recording evidence.

The Employees’ Insurance Court shall have all the powers of a Civil Court for the
purposes of-

(a) Summoning and enforcing the attendance of witnesses;

(ii) Compelling the discovery and production of documents and material objects,
and

(iii) Administering oath and recording evidence.

The Employee’s Insurance Court shall be deemed to be a Civil Court within the meaning
of Sec. 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (Sec. 78 (1). It
shall follow such procedure as may be prescribed by rules made by the State Government
(Sec. 78 (2). Its order shall be enforceable as if it were a decree passed in suit by a Civil
Court (Sec. 78 (4). If there are no statutory rules prescribing the procedure, rules of
natural justice will be followed, i.e., the person indicated shall be given an opportunity of
being heard in his define and the decision shall be given in good faith.
All costs incidental to any proceedings before an Employee’s Insurance Court shall,
subject to such rules are may be made in this behalf by the State Government, be in the
discretion of the Court (Sec. 78)

Conclusion

OTHER QUESTIONS

Contributions

Examine the provisions with regard to functions of Inspectors [5]

98

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LABOUR LAW PALLAVI BHOGLE

The Minimum Wages Act, 1948

PRELIMINARY

What is the objective and the scheme behind passing of Minimum Wages
Act, 1948? [10]
Dec 03, Oct 2K, ?

Explain the salient features of The Minimum Wages Act, 1948 [16]
Dec 05, Dec 04, Oct 97

Introduction: The Minimum Wages Act, 1948 extends to the whole of India. It applies
to the employments, which are enumerated in the Schedule of the Act and in certain cases
may, in the discretion of the appropriate Government, be extended to any other
employment.

Object of the Act

The ‘Minimum Wages Act, 1948’ was passed for the welfare of labourers. This Act has
been enacted to secure the welfare of the workers in a competitive market by providing
for a minimum limit of wages in certain employments. The statement of object of Bill
points out: ‘The justification for statutory fixation of minimum wages is obvious. Such
provisions which exist in more advanced countries are even necessary in India, where
workers' organisations are yet poorly developed and the workers' bargain-power is
consequently poor.’

The Act provides for fixation by the Central Government of minimum wages for
employments detailed in the Schedule of the Act and carried on by or under the authority
of the Central Government.

The items in the Schedule are those where sweated labour is most prevalent or where
there is a big chance of exploitation of labour. More categories of employment can be
added under this Act. The object of the Act is directed against exploitation of the
ignorant, less organised and less privileged members of the society by the capitalists. The
anxiety of the State for improving the general economic condition of some of its less
favoured members appears to be in supersession of the old principle of absolute freedom
of contract and the doctrine of laissez faire and in recognition of the new principles of
social welfare and common good. The object of this Act is to prevent exploitation of the
workers and for this purpose, it aims at fixation of minimum wages which employer must
pay. The legislature undoubtedly intended to apply the Act to those industries or localities

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LABOUR LAW PALLAVI BHOGLE

in which, by reason of causes such as unorganised labour or absence of machinery for

regulation of wages, the wages paid to workers were in the light of the general level of
wages and subsistence level inadequate. Like other branches of labour legislation the
security of industrial peace and efficiency may be kept in view when giving effect to the
provisions of this Act.

In a developing country like ours which faces the problem of unemployment on a very
large scale it is not unlikely that labour may offer to work even on starvation wages. The
policy of the Act, therefore, is to prevent employment of sweated labour in the general
interest and, so, in prescribing the minimum wages rates, the capacity of the employer
need not be considered as the State assumes that every employer must pay the minimum
wages for the employee's labour.

The Act contemplates that minimum wages rates must ensure not only the mere physical
need of the worker which would keep him just above starvation but must ensure for him
not only his subsistence and that of his family but also preserve his efficiency as a
workman. It should, therefore, provide not merely for the bare subsistence of his life but
the preservation of the workers and so must provide for some measure of educational,
medical requirements and amenities.

Salient features of the Act

Some of the features are:

1. This Act provides for the fixation of:
(a) minimum time rate of wages;
(b) a minimum piece rate;
(c) a guaranteed time rate;
(d) an overtime rate, for different occupations, localities or classes of work
and for adults, adolescents, children and apprentices.
2. The minimum rate of wages under the Act may consist of:
(a) a basic rate of wages and a cost of living allowance; or
(b) basic rate of wages with or without the cost of living allowance and the
cash value of the concessions in respect of essential commodities supplied
at concessional rates; or
(c) an all-inclusive rate.
3. The Act requires that wages shall be paid in cash, although it empowers the
appropriate Government to authorize the payment of minimum wages, either
wholly or partly in kind in particular cases.
4. It lays down that the cost of living allowance and the cash value of concessions in
respect of supplies of essential commodities at concessional rates shall be
computed by the competent authority at certain interval. In case of undertakings
controlled by the Union Territories and the Central Government, the Director,
Labour Bureau is the competent authority.
5. The Act empowers the appropriate Government to fix the number of hours of
work per day, to provide for a weekly holiday and the payment of, overtime

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LABOUR LAW PALLAVI BHOGLE

wages in regard to any Scheduled employment in respect of which minimum rates

of wages have been fixed under the Act.
6. The establishments covered by this Act are required to maintain registers and
records in the prescribed manner;
7. The Act also provides for appointment of Inspectors and authorities to hear and
decide claims arising out of payment of wages at less than the minimum rates of
wages or remuneration for days of rest or of work done on such days or of
overtime wages.
8. The provision is also made in the Act for dealing with complaints made for
violation of the provisions of the Act and for imposing penalties for offences
committed under the Act.

Conclusion

Write a short note on ‘Scheduled Employment.’ [10]

06, 03 (AE – 965)

Introduction: The Minimum Wages Act, 1948 extends to the whole of India. It applies
to the employments, which are enumerated in the Schedule of the Act and in certain cases
may, in the discretion of the appropriate Government, be extended to any other
employment.

Section 2 of the Act, the Interpretation clause, gives the meaning and definition of certain
terms used in the Act.

Scheduled Employment

‘Scheduled Employment’ is defined under section 2(g) of the Act.

As per the section, ‘Scheduled employment’ means an employment specified in the

schedule, or any process or branch of work forming part of such employment.

The following are scheduled employment as provided in the Schedule. The Schedule is
divided in two parts.

PART I

1. Employment in any woolen carpet making or shawl-weaving establishment.

2. Employment in any rice mill, flourmill or dal mill.
3. Employment in any tobacco (including bidi making) manufactory.

THE MINIMUM WAGES ACT, 1948 68

LABOUR LAW PALLAVI BHOGLE

4. Employment in any plantation, that is to say, any estate, which is maintained for
the purpose of growing cinchona, rubber, tea or coffee.
5. Employment in any oil mill.
6. Employment under any local authority.
7. Employment on the construction or maintenance of roads or in building
operations.
8. Employment in stone breaking or stone crushing. It covers the breaking or the
crushing of stones incidental to the mining operation, but the stone breaking or
stone crushing operations, which are carried on in mines, are not included. The
minimum wages fixed for the employment of stone breaking and stone crushing
will not apply to the operation of quarrying 'Sahabad State'.
9. Employment in any lac manufactory.
10. Employment in any mica works.
11. Employment in public Motor Transport.
12. Employment in tanneries and leather manufactory.

PART II

Employment in agriculture, that is to say, any form of farming including the cultivation
and tillage of the soil, dairy farming, the production, cultivation growing and harvesting
of any agriculture or horticulture commodity, the raising of live-stock, bees or poultry,
and any practice performed by a farmer or on a farm as incidental to or in conjunction
with farm operation (including any forestry or timbering operations and the preparation
for market and delivery to storage or to market or to carriage for transportation to market
of farm produce.

In Chatturam Darsanram v. Union of India, a petition for quashing the notification dated
28th May, 1976 issued by the Central Government revising the minimum wages of the
workmen employed in the mica mines was filed. The question was whether workmen
working in mine were working in scheduled employment. It was held that item No. 10 of
Part I of the Schedule relates to employment in any 'mica works' and not 'mica mines'.
The connotations of 'mica mines' and 'mica works' are different. It would not be
reasonable to read 'mica mines' in the expression ‘mica works’. Thus 'mica mines' is not
included in the Schedule and as the inclusion of an employment in the Schedule is a
condition precedent for issuing any notification by the appropriate Government the
notification fixing minimum wages is ultra vires.

Conclusion

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LABOUR LAW PALLAVI BHOGLE

Fair Wage [10]

05, 04

What is minimum wage? Bring out the difference between Fair Wage and
Minimum Wage. [10]
Dec 03, 98

Explain the concept of fair wage, living wage and minimum wage. [10]
03, 01

Explain ‘Living Wage’. [6]

Dec 04

Introduction: ‘Wages’ means all remuneration, capable of being expressed in terms of

money, which would if the terms of the contract of employment, express or implied, were
fulfilled, be payable to person employed in respect of his employment or of work done in
such employment and includes house rent allowance.

Broadly speaking the wage structure can be divided into three categories. The basic
‘minimum wage’, which provides bare subsistence and is at poverty line-level, a little
above is the 'fair wage' and finally the 'living wage' which comes at a comfort level. It is
not possible to demarcate these levels of wage structure with any precision.

Certain principles on which wages are fixed have been stated by the Supreme Court in
Kamani Metals and Alloys v. Their Workmen. “Broadly speaking the first principle is
that there is a minimum wage which, in any event must be paid, irrespective of the extent
of profits, the financial condition of the establishment or the availability of workmen on
lower wages. This minimum wage is independent of the kind of industry and applies to
all alike big or small. It sets the lowest limit below which wages cannot be allowed to
sink in all humanity. The second principle is that wages must be fair, that is to say,
sufficiently high to provide a standard family with food, shelter, clothing, medical care
and education of children appropriate for the workmen but not at a rate exceeding his
wage earning capacity in the class of establishment to which he belongs. A fair wages is
thus related to the earning capacity and the workload. It must, however, be realized that
‘fair wage’ is not ‘living wage’ by which is meant a wage which is sufficient to provide
not only the essential above mentioned but a fair measure of frugal comfort with an
ability to provide for old age and evil days. Fair wage lies between minimum wage,
which must be paid in any event, and the living wage, which is the goal.”

Minimum Wages

The expression ‘minimum wages’ is not defined in the Act presumably because it would
not be possible to lay down a uniform minimum wages for all industries throughout the

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LABOUR LAW PALLAVI BHOGLE

country on account of different and varying conditions prevailing from industry to

industry and from one part of the country to another.

A minimum wage must provide not merely for the bare subsistence of life but for the
preservation of the efficiency of the worker and, so it must also provide for some measure
of education, medical requirements and amenities. The concept of minimum wage does
not mean a wage that enables the worker to cover his bare physical need and keep himself
just above starvation. The capacity of the employer to pay is irrelevant in fixing
minimum wage. Therefore, no addition shall be made to the components of the minimum
wage, which would take the minimum wage near the lower level of the fair wage. In
Unichay v. State of Kerala, it was held that “the Act contemplates that minimum wage
rates should be fixed in the scheduled industries with the dual object of providing
subsistence and maintenance of the worker and his family and preserving his efficiency
as a worker.”

It has been held that the employees are entitled to the minimum wage at all times and
under all circumstances. An employer who cannot pay the minimum wage has no right to
engage labour and no justification to run the industry.

In People's Union for Democratic Rights v. Union of India, it was held by the Supreme
Court that where children below the age of 14 years are employed in violation of the
Employment of Children Act, 1938 and minimum wages are denied either to such
children or to other persons who by reason of poverty or socially or economically
disadvantageous position are unable to approach the Court, legal redress may be sought
on their behalf by any member of public.

Fair Wages

There is difference between minimum wages and fair wages. In the case of fair wage,
besides the principle of industry-cum-region, the company's capacity to bear the financial
burden must receive due consideration. But mere hopeful observations made in the
director's annual report cannot be basis for awarding increased wages because such
observations are sometimes made to inspire hope and confidence in shareholders and they
cannot be a substitute for actual audited figures.

S.A.F.L. Works v. State Industrial Court, Nagpur, is a leading case on the point. In this
case the Supreme Court observed that in fixing the paying capacity the Tribunal will have
to fix the income as well as permitted deductions and allowances properly incurred.
There can be no dispute that expenses incurred for purchase of raw material, maintenance
of the factory, expenses incurred towards rent, public charges, maintenance of the
establishment and expensee incurred in marketing of the produce should be deducted.
These items are not exhaustive. As to whether a particular item of expenditure is liable to
be deducted or not have to be determined on the facts of the case. No deduction should be
allowed for payment of income tax or for allowances made for depreciation or for making
provision for reserve. So far as expenses incurred towards payment of age bill inclusive
of dearness allowances, bonus, gratuity, etc. are concerned they will have to be deducted.

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It was held in Transport Corpn. of India Ltd. v. State of Maharashtra & Others, that it is
not for the Labour Court or Tribunal to fix the minimum rates of wages. While fixing fair
rates of wages the courts or tribunals take into consideration the minimum rates of wages
and where the Government has not fixed the minimum rates of wages then the courts or
tribunals ascertain for themselves what would be the minimum rate of wages. In fact,
minimum rate of wages are fixed by the Government. Courts or tribunals merely
ascertain what are the minimum rates of wages for the purpose of deciding ‘fair wages’.

Living Wage

The Fair Wage Committee in its report published by Government of India, Ministry of
Labour in 1949 defined the ‘living wage’ as: “The Living wage should enable the male
earner to provide for himself and his family not merely the bare essentials of food,
clothing and shelter but a measure of frugal comfort including education for children,
protection against ill-health, requirements of essential social needs, and a measure of
insurance against the more important misfortunes including old age.”

Conclusion

FIXATION OF MINIMUM RATES OF WAGES, WORKING

HOURS AND DETERMINATION OF WAGES AND CLAIMS, ETC.

Explain the procedure for fixing and reviewing minimum wages under the
Minimum Wages Act, 1948. [10]
06, 04, Dec 02, Dec 02, 99, Oct 98, 95

Explain the provisions of the Minimum Wages Act, 1948 dealing with the
procedure for fixation and the revision of Minimum Wages. [16]
05

Introduction: The expression ‘minimum wages’ is not defined in the Act presumably
because it would not be possible to lay down a uniform minimum wages for all industries
throughout the country on account of different and varying conditions prevailing from
industry to industry and from one part of the country to another.

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A minimum wage must provide not merely for the bare subsistence of life but for the
preservation of the efficiency of the worker and, so it must also provide for some measure
of education, medical requirements and amenities.

Fixation of Minimum Rates of Wages

Section 3 lays down that that the appropriate Government shall be empowered to fix the
minimum rates of wages in the manner prescribed under this Act. It shall fix the
minimum rates of wages payable to employees employed in an employment specified in
Part I or Part II of the Schedule and in an employment added to either part by notification
under Section 27.

But the appropriate Government may, in respect of employees employed in an

employment specified in Part II of the Schedule, instead of fixing minimum rates of
wages under this clause for the whole State, fix such rates for a part of the State or for
any specified class or classes of such employment in the whole of the State or part
thereof.

The appropriate Government shall review the minimum rates of wages to fix and revise
the minimum rates, if necessary, at such intervals as it may think fit. The interval as
aforesaid shall not exceed five years. But where for any reason the appropriate
Government has not reviewed the minimum rates of wages fixed by it within an interval
of five years, the appropriate Government shall not be without power to review or revise
after five years. Until the minimum rates are so revised the minimum rates in force
immediately before the expiry of the said period of five years shall continue in force.

Sub-section (I-A) provides that the appropriate Government may refrain from fixing
minimum rates of wages in respect of any scheduled employment in which there are in
the whole State less than one thousand employees engaged in such employment. But if at
any time, the appropriate Government, comes to a finding after such enquiry as it may
make or cause to be made in this behalf that the number of employees In any scheduled
employment in respect of which it has refrained from fixing minimum rates of wages, has
risen to one thousand or more. It shall fix minimum rates of wages payable to employee
in such employment as soon as may be after such finding.

In Sahdeo Sahu v. State of M.P. and another it was held that Section 3(1-A) does not
prevent the appropriate Government from fixing the minimum rates of wage even if the
number of employees in that scheduled employment is less than one thousand. The word
'refrain' used in Section 3(1-A) would include jurisdiction to withdraw the minimum rates
of wages earlier fixed if the strength in the scheduled employment falls below 1000. The
power to rescind the wages once fixed without any express provision in that regard in
Section 3(1-A) can well be inferred with reference to Section 21 of the General Clauses
Act.

Procedure for Fixing and Revising Minimum Wages

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Section 5 lays down that in fixing minimum rates of wages in respect of any scheduled
employment for the first time under this Act or in revising minimum rates of wages so
fixed, the appropriate Government shall either:-
(a) appoint as many committees and sub-committees as it considers necessary to hold
enquiries and advise it in respect of such fixation or revision, as the case may be;
or
(b) by notification in the Official Gazette, publish its proposals for the information of
persons likely to be affected thereby and specify a date not less than two months
from the date of the notification on which the proposals will be taken into
consideration.

After considering the advice of the committees appointed, and all representations
received by it before the date specified in the Gazette notification, the appropriate
Government may by notification in the official Gazette, fix or revise the minimum rates
of wages in respect of each scheduled employment, which shall come into force after the
expiry of 3 months unless otherwise provided in the notification.

Where the appropriate Government proposes to revise the minimum rates of wages by the
mode specified in Section 5(1)(b), the appropriate Government shall consult the Advisory
Board also.

If the Advisory Board approves the notification regarding revision of wages without
discussing the objections raised, the action of the Board would be arbitrary because it
amounts to non-application of mind in granting approval.

The exercise of power to fix or revise the minimum wages under sub-section (2) of
Section 5 is limited only to employments specified in the schedule. Under section 27 of
the Act the appropriate Government may add any employment to the schedule. The
nature and extent of powers of the appropriate Government under Section 27 and Section
5(2) is separate and distinct and what can be done by the appropriate Government in
exercise of its power under Section 27 cannot be done by it in exercise of its powers
under Section 5(2) of the Act.

The power conferred upon the appropriate Government under Section 5(1) is neither
arbitrary nor unguided. Therefore sub-section (1) does not offend Article 14 of the
Constitution. In the matter of fixing minimum wages, the economic capacity of the trade
or industry is irrelevant, for, what alone is germane, is, the wage required by the
employees to survive. The fixation of minimum wages depends on the prevailing
economic conditions, the cost of living in a place, the nature of the work to be performed
and the conditions in which the work is performed. Where a notification is issued by the
Government authorizing the employer to deduct the sum mentioned in the notification
towards the cost of free meals supplied to the workers by him, it was held that the
notification gives only an option to the employer and does not impose an obligation upon
him. Supplying food is an amenity. The notification does not mean fixing of minimum
wages in kind. The power of the Government to prescribe minimum rates of wages or to
revise them does not include power to vary other terms of contract.

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In Muruga Home Industries v. Government of Tamil Nadu & another minimum wages of
Beedi workers were revised by the State Government by a notification issued after
consultation with the Advisory Board. It was held that the notification fixing minimum
wages should not be interfered with in writ proceedings except on most substantial
grounds. Advisory Board is well balanced since representation is given to employers and
employees. Work in Beedi industry is unorganized sector and condition of work and
wages of beedi workers are below subsistence level and minimum wages fixed is fair and
just and not arbitrary.

Conclusion

Explain the provisions of the Minimum Wages Act pertaining to overtime,

maintenance of registers and records. [10]
03

Introduction: The expression ‘minimum wages’ is not defined in the Act presumably
because it would not be possible to lay down a uniform minimum wages for all industries
throughout the country on account of different and varying conditions prevailing from
industry to industry and from one part of the country to another.

A minimum wage must provide not merely for the bare subsistence of life but for the
preservation of the efficiency of the worker and, so it must also provide for some measure
of education, medical requirements and amenities.

Overtime [S. 14]

Where an employee works on any day in excess of the number of hours constituting a
normal working day, the employer shall pay him overtime. An employee entitled to
overtime must be such whose minimum rate of wage is fixed under this Act by the hour,
by the day or by such a longer wage period as may be prescribed. The overtime shall be
payable for every hour or for part of an hour so worked in excess at the rate fixed under
this Act or under any law of the appropriate Government for the time being in force,
whichever is higher.

Nothing in this Act shall prejudice the operation of the provisions of Section 59 of the
Factories Act, 1948, in any case where those provisions are applicable.

It was held in Municipal Council, Hatta v. Bhagat Singh that section of the Minimum
Wages Act clearly provides for payment of overtime only to those employees who are
gelling minimum rate of wages under The Minimum Wages Act, 1948. It does not apply

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to those getting better wages in other statutory rules. In the present case Municipal
Council employees were receiving wages under Municipal Rules, which were much more
than minimum wages. Therefore, they are not entitled to benefit of Section 14 (i.e.
overtime) merely because employment under any Local Authority is listed as Item 6 in
the Schedule to the Act.

Maintenance of Registers and Records

Section 18 requires that every employer shall maintain such registers and records giving
such particulars of employees employed by him, the work performed by them, the wages
paid to them, the receipts given by them and such other particulars and in such form as
may be prescribed.

Every employer shall keep exhibited, in such manner as may be prescribed, in the
factory, workshop or place where the employees in the scheduled employment may be
employed or in the case of out workers, in such factory, workshop or place as may be
used for giving out-worker to them, notice in the prescribed form containing prescribed
particulars.

Under Section 18(3) the appropriate Government may, by rules made under this Act,
provide for the issue of wage books or wages slips to employees employed in any
scheduled employment in respect of which minimum rates of wages have been fixed. The
appropriate Government may prescribe the manner in which entries shall be made and
authenticated in such wage books or wages slips by the employer, or his agent.

Conclusion

MISCELLANEOUS

What is minimum wage? Can an employer escape the payment of minimum

wage? [10]
2K, Dec 99, 97

Introduction: ‘Wages’ means all remuneration, capable of being expressed in terms of

money, which would if the terms of the contract of employment, express or implied, were
fulfilled, be payable to person employed in respect of his employment or of work done in
such employment and includes house rent allowance.

Broadly speaking the wage structure can be divided into three categories. The basic
‘minimum wage’, which provides bare subsistence and is at poverty line-level, a little

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LABOUR LAW PALLAVI BHOGLE

above is the 'fair wage' and finally the 'living wage' which comes at a comfort level. It is
not possible to demarcate these levels of wage structure with any precision.

Certain principles on which wages are fixed have been stated by the Supreme Court in
Kamani Metals and Alloys v. Their Workmen. “Broadly speaking the first principle is
that there is a minimum wage which, in any event must be paid, irrespective of the extent
of profits, the financial condition of the establishment or the availability of workmen on
lower wages. This minimum wage is independent of the kind of industry and applies to
all alike big or small. It sets the lowest limit below which wages cannot be allowed to
sink in all humanity. The second principle is that wages must be fair, that is to say,
sufficiently high to provide a standard family with food, shelter, clothing, medical care
and education of children appropriate for the workmen but not at a rate exceeding his
wage earning capacity in the class of establishment to which he belongs. A fair wages is
thus related to the earning capacity and the workload. It must, however, be realized that
‘fair wage’ is not ‘living wage’ by which is meant a wage which is sufficient to provide
not only the essential above mentioned but a fair measure of frugal comfort with an
ability to provide for old age and evil days. Fair wage lies between minimum wage,
which must be paid in any event, and the living wage, which is the goal.”

Minimum Wages

The expression ‘minimum wages’ is not defined in the Act presumably because it would
not be possible to lay down a uniform minimum wages for all industries throughout the
country on account of different and varying conditions prevailing from industry to
industry and from one part of the country to another.

A minimum wage must provide not merely for the bare subsistence of life but for the
preservation of the efficiency of the worker and, so it must also provide for some measure
of education, medical requirements and amenities. The concept of minimum wage does
not mean a wage that enables the worker to cover his bare physical need and keep himself
just above starvation. The capacity of the employer to pay is irrelevant in fixing
minimum wage. Therefore, no addition shall be made to the components of the minimum
wage, which would take the minimum wage near the lower level of the fair wage. In
Unichay v. State of Kerala, it was held that “the Act contemplates that minimum wage
rates should be fixed in the scheduled industries with the dual object of providing
subsistence and maintenance of the worker and his family and preserving his efficiency
as a worker.”

It has been held that the employees are entitled to the minimum wage at all times and
under all circumstances. An employer who cannot pay the minimum wage has no right to
engage labour and no justification to run the industry.

In People's Union for Democratic Rights v. Union of India, it was held by the Supreme
Court that where children below the age of 14 years are employed in violation of the
Employment of Children Act, 1938 and minimum wages are denied either to such
children or to other persons who by reason of poverty or socially or economically

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LABOUR LAW PALLAVI BHOGLE

disadvantageous position are unable to approach the Court, legal redress may be sought
on their behalf by any member of public.

Exemption of employer from liability in certain cases [S. 23]

Where an employer is charged with an offence under this Act, he is entitled to file a
complaint against the actual offender. On his complaint the actual offender shall be given
notice and brought before the court at the time appointed for hearing the charge. Thus
both actual offender and the employer shall be tried, but the trial shall start on original
complaint and the onus to bring the charges at home shall be on the original complainant.
If the commission of the offence is proved, the employer shall be liable unless he proves
to the satisfaction of the court that
(i) he has used diligence to enforce the execution of this Act;
(ii) the said other person committed the offence in question without his
knowledge, consent or connivance.

If the employer succeeds in establishing the existence of one or the other of the two
circumstances, the actual offender shall be convicted of the offence and the employer
shall be discharged. The employer in seeking to prove his innocence may be examined on
oath. The employer or his witness shall be cross-examined by or on behalf of the person
whom the employer charges as actual offender by the prosecution.

Conclusion

Remaining Question

Explain the Subsistence theory of wages. [6]

03, Dec 02

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LABOUR LAW PALLAVI BHOGLE

The Payment of Wages Act, 1936

PRELIMINARY

Discuss the objects of the Payment of Wages Act, 1936. What is the
penalty for unlawful deductions? [10]
Dec 02

Substantiate your views on the comment – ‘The Payment of Wages Act, 1936
is a social welfare legislation.” [10]
02

Critically examine the scope of the Payment of Wages Act, 1936. [10]
Oct 98

Give an account of the salient features of the Payment of Wages Act, 1936
[10]
05, 03

The Payment of Wages Act tries to protect the wages of a worker from
unlawful deductions – Comment. [10]
Dec 02

Introduction: The need to protect the wages earned by the worker had been felt from the
early years of the twentieth century, but it was as early as 1925 that a Private Bill called
the ‘Weekly Payment Bill’ was for the first time introduced in the Legislative Assembly.
At that time different periods of payment of wages were prevalent. An attempt was made
to remedy some of the evils viz., delay in payment of wages, non - payment of wages,
deductions made from wages on account of fines imposed by the employer etc. The Bill
was, however, withdrawn on an assurance of the Government that the matter was under
consideration of the Government. Imposition of fines by employers on workers and
deduction of even double the amount of wages for absence period by way of fine was
very much customary in those days. The desirability of regulating the extent of fines and
other deductions, through legislation was felt by the Government in 1926.

The Royal Commission on Labour in India made some valuable recommendations. The
present Act is mostly based on those recommendations. The Commission was of the
opinion that legislation regarding deductions from wages and fines was essential. The
following recommendations are worth citing:

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LABOUR LAW PALLAVI BHOGLE

1. Children should be exempt from fine.

2. The minimum amount which could be deducted by way of fine should not exceed
in any month half an anna in the ruppee of the worker's earnings.
3. The sum realized as fine should be utilized for some purpose beneficial to the
employees as a class and should be approved by some recognized authority.
4. A notice specifying the acts and omissions in respect of which fines may be
imposed should be posted and any other fine should be deemed to be illegal.
5. Any deduction made for goods having been damaged should not exceed the
wholesale price of the goods damaged.
6. Deductions may be made on account of provision for housing accommodation
and of tools and raw materials.
7. Imposition of any fine and deduction made, which is not permitted by law, should
be made penal.

A Bill of Payment of Wages Act, based on the recommendations of the Royal

Commission on Labour was introduced in the Legislative Assembly in 1933 but could
not take the shape of the Act because of the dissolution of the Assembly. The Payment of
Wages Act was passed in 1936 and came into force on 21st March, 1937.

Object of the Act

The preamble of the Act states that the object of the Act is ‘to regulate the payment of
wages to certain classes of employed persons.’ The regulation contemplated by the Act is
twofold:
• First, the date of payment of wages
• Secondly, the deductions from wages whether as fine or otherwise.
To ensure payment of wages to persons covered by the Act certain provisions have been
made in this Act. The Bombay High Court in Aravind Mils Ltd. v. K.R Gadgil, observed
that “the general purpose of the Act is to provide that employed persons shall be paid
their wages in a particular form and at regular intervals without any unauthorized
deductions.” The use of the expression ‘certain classes of persons’ in the preamble is
important for the Act applies to persons drawing on an average wages less than one
thousand six hundred rupees a month. Any deduction from the wages or salaries of the
workmen governed by the Payment of Wages Act, unless authorized by the Act shall be
deemed to be illegal. Any deduction from the wages of the workmen, under a settlement
between representative Union and employer can, however, permit a deduction as it is the
outcome of an understanding between the parties even though such deduction may not be
authorized or legally permissible under the Act.

Application [S.1]

The Payment of Wages Act, 1936 extends to the whole of India. It came into operation on
21st March, 1937.

According to sub-section (4) this Act applies in the first instance to the payment of wages
to:

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LABOUR LAW PALLAVI BHOGLE

(i) persons employed in any factory;

(ii) persons employed (otherwise than in factory) upon any railway by a
railway administration, or either directly or, through a sub-contractor, by a
person fulfilling a contract with a railway administration; and
(iii) persons employed in an industrial or other establishment specified in sub-
clauses (a) to (g) of clause (ii) of Section 2 of this Act.

Sub-section (5) empowers the appropriate Government to extend the application of the
whole or part of the Act to payment of wages to any class of persons employed in the
establishment or class of establishments specified by the appropriate Government under
sub-clause (h) of clause (ii) of Section 2.

The exercise of power by the appropriate Government is subject to two conditions:

• issue of three months prior notice of its intention to do so
• a notification of the extention in the official Gazette
Provided that in relation to any such establishment owned by the Central Government, no
such notification shall be issued except with the concurrence of that Government.

This Act applies to wages payable to an employed person in respect of a wage period if
such wages for that wage period do not exceed six thousand five hundred rupees per
month or such other higher sum which, on the basis of figures of the Consumer
Expenditure Survey published by the National Sample Survey Organisation, the Central
Government may, after every five years, by notification in the Official Gazette, specify.

In Indian Statistical Institute v. State of West Bengal & others, the Indian Statistical
Institute employed about 2000 persons in various departments or in connection with its
work. It was held that in Osmania University case, the Supreme Court has held that
Factories Act was applicable to the press of the University. This principle applies to
Indian Statistical Institute also and it will be covered by the Payment of Wages Act.

Conclusion

Define and explain the term ‘wages’ as defined under the Payment of Wages
Act, 1936. [10]
Dec 05

What are the components of the definition of wages under the Payment of
Wages Act, 1936? [10]
02

Explain the different concepts of wages. [10]

02

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 LABOUR LAW PALLAVI BHOGLE

Introduction: Wages, as defined under S. 2(vi) means all remuneration, whether by way
of salaries, allowances or otherwise, expressed in terms of money or capable of being so
expressed which would, if the terms of employment, express or implied were fulfilled, be
payable to a person employed in respect of his employment or of work done in such
employment

'Wages' includes:
(a) any remuneration payable under any award or settlement between the parties or
order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment, whether
called a bonus or by any other name;

The definition of wages is not limited to remuneration payable under an agreement or

contract. The amended definition would apply to all kinds of remuneration, whether
arising from a contract, an award, a settlement or under a statute;
(d) any sum which by reason of the termination of employment of the person
employed is payable under any law, contract or instrument which provides for the
payment of such sum, whether with or without deductions, but does not provide
for the time within which the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under
any law for the time being in force.
Wages does not include:
1. any bonus (whether under a scheme of profit sharing or otherwise) which does not
form part of the remuneration payable under the terms of employment or which is
not payable under any award or settlement between the parties or order of a Court;
The bonus payable under the Payment of Bonus Act, 1965 amounts to wages within the
definition in this sub-section 2.
2. the value of any house accommodation, or of the supply of light, water, medical
attendance or other amenity or of any service excluded from the computation of
wages by a general or a special order of the State Government;
3. any contribution paid by the employer to any pension or provident fund, and the
interest which may have accrued thereon;
4. any traveling allowance or the value of any traveling concession;
5. any sum paid to the employed person to defray special expenses entailed on him
by the nature of his employment; or
6. any gratuity payable on the termination of employment in cases other than those
specified in clause (d) of section 2(vi).

The definition of the word "wages" under this Act does not appear to have undergone any
change subsequent to the passing of Payment of Bonus Act in 1965. Statutory bonus of
eight and one-third per cent is payable whether there are profits to the accounting year or
not. After coming into force of the Payment of Bonus Act, bonus has become an implied
term of employment not dependent upon the profits and therefore comes under the

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category of remuneration. Viewed in this light the wages as a general term would include
bonus.

The amount of retrenchment compensation payable to the employees, under Section 25-
F(b) of the Industrial Disputes Act, 1947 are sums payable to the employee on the
termination of the services and are, therefore, wages within the meaning of Payment of
Wages Act, 1936.

The amount of lay-off compensation under Section 25-C of the Industrial Disputes Act,
1947, does not come within the definition of wages as given in this Act. Where the rule
framed under the Motor Transport Workers Act, 1961 provided that each member of
certain class of staff is entitled, as a part of a uniform, two pairs of Pathani chappals a
year, the claim relating to value of Pathani chappals would fall within the definition of
wages.

Having regard to the object, which the legislature had in mind in widening the scope of
the definition, it would not be unreasonable to hold that the word ‘instrument’ has a wider
denotation in the context and cannot be confined only to documents executed as between
the parties. The scheme of the definition and the context or sub-clause (d) read with sub-
clause (6) seems to suggest that the word 'instrument' would include awards made by
Industrial Courts of competent jurisdiction.

When an award is made and it prescribes a new wage structure, in law the old contractual
wage structure becomes inoperative and its place is taken by the wage structure
prescribed by the award. When industrial disputes are decided by industrial adjudication,
and awards are made, the said awards supplant contractual terms in respect of matters
covered by them and are substituted for them. Therefore, the term 'wages' as defined in
Section 2(vi), of the Payment of Wages Act, 1936, as it stood prior to its amendment in
1957, includes wages fixed by an award. Though it is well settled that awards have on
many occasions the effect of altering or modifying the contractual terms of employment
between an industrial employer and his employees, it would be difficult to hold that the
award as such is a contract.

Conclusion

PAYMENT OF WAGES AND DEDUCTIONS FROM WAGES

Define wages as used in the Payment of Wages Act, 1936. What is the time
and mode of payment of wages under the Payment of Wages Act, 1936? Who
is responsible for payment of wages? [10]
Dec 03, 2K, 99, Oct 97

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LABOUR LAW PALLAVI BHOGLE

Introduction: Wages, as defined under S. 2(vi) means all remuneration, whether by way
of salaries, allowances or otherwise, expressed in terms of money or capable of being so
expressed which would, if the terms of employment, express or implied were fulfilled, be
payable to a person employed in respect of his employment or of work done in such
employment

'Wages' includes:
(f) any remuneration payable under any award or settlement between the parties or
order of a Court;
(g) any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period;
(h) any additional remuneration payable under the terms of employment, whether
called a bonus or by any other name;

The definition of wages is not limited to remuneration payable under an agreement or

contract. The amended definition would apply to all kinds of remuneration, whether
arising from a contract, an award, a settlement or under a statute;
(i) any sum which by reason of the termination of employment of the person
employed is payable under any law, contract or instrument which provides for the
payment of such sum, whether with or without deductions, but does not provide
for the time within which the payment is to be made;
(j) any sum to which the person employed is entitled under any scheme framed under
any law for the time being in force.

Responsibility for payment of wages [S. 3]

1. Every employer shall be responsible for the payment of all wages required to be
paid under this Act to persons employed by him and in case of persons employed,

(a) in factories, if a person has been named as the manager of the factory
under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948
(b) in industrial or other establishments, if there is a person responsible to the
employer for the supervision and control of the industrial or other
establishments;
(c) upon railways (other than in factories), if the employer is the railway
administration and the railway administration has nominated a person in
this behalf for the local area concerned;
(d) in the case of contractor, a person designated by such contractor who is
directly under his charge; and
(e) in any other case, a person designated by the employer as a person
responsible for complying with the provisions of the Act,
the person so named, the person responsible to the employer, the person nominated or the
person so designated, as the case may be, shall be responsible for the payment

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LABOUR LAW PALLAVI BHOGLE

2. Notwithstanding anything contained in sub-section (1), it shall be the

responsibility of the employer to make payment of all wages required to be made
under this Act in case the contractor or the person designated by the employer fail
s to make such payment.

In Agarwala P.C. v. Payment of Wages Inspector, M.P. and Others, Jiyajirao Cotton
Mills became a sick company. It owed to its workmen wages for certain periods. Payment
of Wages Inspector initiated action under Section 15 of the Payment of Wages Act, 1936
against the Directors of the Company. The authorities under the Act held the Directors
personally liable to pay the wages. That was affirmed by the High Court. The Directors
filed appeal challenging the judgment of the High Court. They were allowed and the
appeals filed by the functionaries under the Act were dismissed.

Fixation of Wage Period [S. 4]

The person responsible for payment of wages under Section 3 shall fix wage periods in
respect of which wages shall be payable. Such wage period shall not in any case exceed
one month.

Time of payment of wages [S. 5]

If the number of persons employed upon or in any railway, factory or industrial or other
establishment is less than one thousand persons, wages shall be paid before the expiry of
the seventh day after the last day of the wage period. The wages of every person
employed upon or in any other railway, factory or industrial or other establishment shall
be paid before the expiry of the tenth day of the last day of the wage period in respect of
which the wage is payable.

Provided that in the case of persons employed on a dock, wharf, or jetty or in a mine, the
balance of wages found due on completion of the final tonnage account of the ship or
wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the
seventh day of such completion.

In case of the termination of employment of an employee, the wages earned by him shall
be paid before the expiry of the second working day from the day on which employment
is terminated. If the employment of a person in an establishment is terminated due to the
closure of the establishment for any reason other than a weekly or other recognized
holiday the wages earned by him shall be paid before the expiry of the second day from
the day on which his employment is so terminated. All payments of wages shall be made
on a working day.

Section 5(3) provides that the State Government may to such an extent and subject to
such conditions as may be specified in the order exempt the person, responsible for the
payment of wages to persons employed upon any railway (otherwise than in a factory) or
to persons employed as daily rated worker in the Public Works Department of the Central

THE PAYMENT OF WAGES ACT, 1936 85

LABOUR LAW PALLAVI BHOGLE

Government or the State Government, from the operation of Section 5 in respect of the
wages of any such persons or class of such persons. In the case of persons employed as
daily rated workers as aforesaid, no such order shall be made without consultation of the
Central Government.

Conclusion

What are deductions? Explain the various kinds of deductions under the
Payment of Wages Act, 1936. [16]
Dec 04, 01, Dec 99

Enumerate the authorized deductions from wages under the Payment of

Wages Act, 1936 [6]
05, 95

Introduction: Section 7(1) of the Act provides that wages for employed person shall be
paid to him without deductions of any kind except, those authorized by or under this Act.
Thus Section 7(1) lays down a general prohibition against any deductions from the wages
of a worker. Sub-section (2) enumerates deductions, which are permissible and shall be
made in accordance with the provisions of this Act.

Deduction

Explanation No. 1 to Section 7(1) says that every payment made by the employed person
to the employer or his agent shall, for the purposes of this Act, be deemed to be a
deduction from wages. Explanation No. 2 lays down that any loss of wages resulting
from the imposition, upon a person, of the following penalties shall not be deemed to be a
deduction from wages:
(i) the withholding of increment or promotion including the stoppage of
increment at any efficiency bar;
(ii) the reduction to a lower post or time scale or to a lower stage in a scale;
(iii) suspension

But these penalties shall not be deemed to be deductions provided the rules framed by the
employer for the imposition of any such penalty are in conformity with the requirements,
if any, which may be specified in this behalf by the State Government by notification in
the Official Gazette.

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LABOUR LAW PALLAVI BHOGLE

Reasons for Deductions

Deductions for absence from duty

Clause (b) of Section 7(2) permits deductions for absence from duty.

In the Bank of India, Bombay and another v. T.S. Kelawala Bombay and others, the Bank
employees demanded wage revision and pending acceptance of demand decided to go on
4 hours strike daily. Bank issued a circular to deduct full day’s wages of such employees
who participated in the strike. It was held that strikes and demonstrations are legitimate
forms of protest and they are not banned in the country. By an administrative circular the
legitimate mode of protest allowed and recognized by law cannot be stifled.

It was further held that Payment of Wages Act is regulatory. Section 7(2) read with
Section 9 of the Act provides the circumstances under which and the extent to which
deduction can be made. It is only when the employer has right to make deduction, resort
should be had to the Act to ascertain the extent to which the deduction can be made. No
deduction exceeding the limit provided by the Act is permissible even if the contract so
provides. There cannot be any contract contrary to or in terms wider than the import of
Sections 7 and 9 of the Act. Therefore wage deduction cannot be made under Section
7(2) of the Payment of Wages Act if there is no such power to the employer under the
terms of contract.

Deductions for recovery of loans made from any fund

Clause (ff) of sub-section (2) of Section 7 provides that deduction may be made for
recovery of loans made from any fund constituted for the welfare of labour in accordance
with the rule approved by the State Government, and the interest due in respect thereof.
According to clause (fff) of Section 7(2) deductions are permitted for recovery of loans
granted for house building or other purposes approved by the State Government and the
interest due thereon.

Income tax payable by the employed person may be deducted from his wages according
to clause (g) of sub-section (2) of Section 7. It may be recovered in monthly installments.

Clause (h) of Section 7(2) lays down that deductions, required to be made by order of a
Court or other authority competent to make such order may be made from the wages of
an employed person.

Clause (j) of Section 7(2) lays down that deductions for payments to co-operative
societies approved by the State Government or any officer specified by it in this behalf or
to a scheme of insurance maintained by the Indian Post Office may be made from the
wages of an employed person.

Clause (k) of Section 7(2) provides that deductions may be made with the written
authorization of the person employed for payment of any premium on his life insurance

THE PAYMENT OF WAGES ACT, 1936 87

LABOUR LAW PALLAVI BHOGLE

policy to the Life Insurance Corporation of India established under the Life Insurance
Corporation Act, 1956; or for the purchase of securities of the Government of India or
any State Government or for being deposited in any Post Office Savings Bank in
furtherance of any saving scheme of any Government.

According to clause (kk) of Section 7(2) deduction may be made, with written
authorization of the employed person for the payment of his contribution to any fund
constituted by the employer or a trade union registered under the Trade Union Act, 1926
for the welfare of the employed persons or the members of their families, or both and
approved by the State Government or any officer specified by it in this behalf during the
continuance of such approval.

Clause (kkk) of Section 7(2) provides that deduction may be made, with the written
authorization of the employed person, for payment of the fees payable by him for the
membership of any trade union registered under the Trade Union Act, 1926.

Deduction for recovery of losses

Clause (m) of Section 7(2) authorizes deduction for recovery of losses sustained by a
railway administration on account of acceptance by the employed person of counterfeit or
base coins or mutilated or forged currency notes

Clause (n) of Section 7(2) authorizes deduction for recovery of losses sustained by
railway administration on account of the failure of the employed person to invoice, to
bill, to collect, or to account for the appropriate charges due to that administration,
whether in respect of fares, freight, demurrage, wharfage and carriage or in respect of
sale of food in catering establishment or in respect of sale of commodities in grain shops
or otherwise.

Clause (o) of Section 7(2) allows deductions for recovery of losses sustained by a railway
administration on account of any rebates, or refunds incorrectly granted by the employed
person where such loss is directly attributable to his neglect or default.

But no such deductions under clause (m), (n) or (o) as aforesaid shall be made without
giving the employed person an opportunity of showing cause against the deduction. Any
such deduction shall only be made in accordance with such procedure as may be
prescribed for the making of deductions.

Clause (p) of Section 7(2) permits any deduction to be made with the written
authorization of the employed person, for the contribution to the Prime Minister's
National Relief Fund or such other Fund as the Central Government may, by notification
in the official Gazette specify.

According to Clause (q) of Section 7(2) deductions may be made for contributions to any
insurance scheme framed by the Central Government for the benefit of its employees.

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LABOUR LAW PALLAVI BHOGLE

Deduction by order of court

In Municipal Corporation v. N.L. Abhyankar, a representative, Union requested the

employer to collect levies from the employee and remit the same to it. The employer
refused to do so and the Union made an application to the Labour Court requesting the
Court to order the employer to accept their request. The Labour Court ordered the
employer to collect the levy as requested by the Union.
In appeal the employer's contention was that no deductions other than those permissible
under the Act can be made. It was held that while it is correct that no deductions can be
made from the wages of an employee, other than those deductions, which have been
specifically set out in Section 7(2) of the Act, clause (h) of sub-section 2 of section 7
clearly allows deductions ‘required to be made by order of a Court or other authorities
competent to make such order.’ In view of this the Labour Courts are competent to make
the order for deduction.

Deduction with consent

In Monsukh Gopinath Jadhav v. W.M. Bapat, it was held that there is nothing illegal in
the action of the employer or the representative union in arriving at a settlement and the
clause in the settlement providing for deduction of certain amount and paying it to the
employees union. Such a settlement does not contravene Section 7 of the Act because this
section permits deduction with the consent of the employees.

Conclusion

State the circumstances under which an employer can impose a fine on any
worker under the Payment of Wages Act, 1936. [10]
Oct 2K

Explain how fines are deducted from wages. [6]

Dec 03, 02

Introduction: In view of Section 7(2) deductions from the wages of an employed person
shall be made only in accordance with the provisions of this Act, and may be in the form
of fines.

Fines [S. 8]

Section 8 lays down the general requirements for imposition and deductions of fines.
Section 8(1) provides that fines shall be imposed on any employed person in respect of
any such acts and omissions on his part as the employer, with the previous approval of

THE PAYMENT OF WAGES ACT, 1936 89

LABOUR LAW PALLAVI BHOGLE

the State Government or of the prescribed authority, may have specified by notice under
Section 8(2).

A notice specifying such acts and omissions shall be exhibited in the prescribed manner
on the premises in which the employment is carried on or in the case of persons
employed upon a railway (otherwise than a factory) at the prescribed place or places. No
fine shall be imposed on any employed person until he has been given an opportunity of
showing cause against the fine, or otherwise than in accordance with such procedure as
may be prescribed for the imposition of fines.

The total amount of fine which may be imposed in any wage period on any employed
person shall not exceed an amount equal to three percent of the wages payable to him in
respect of the wage period. No fine shall be imposed on any employed person who is
under the age of fifteen years. No fine imposed on any person shall be recovered from
him by installments or after the expiry of ninety days from the day on which it was
imposed. Every fine shall be deemed to have been imposed on the day of the act or
omission in respect of which it was imposed.

All fines and all realizations of the fine shall be recorded in a register to be kept by the
person responsible for the payment of wages under Section 3, in such form as may be
prescribed. All realizations of fine shall be applied only to such purposes beneficial to the
persons employed in the factory or establishments as are approved by the prescribed
authority.

Conclusion

AUTHORITIES UNDER THE ACT

Explain the appointment and powers of the ‘Authorities’ under the Payment
of Wages Act, 1936. [16]
06, 98

Explain the appointment, power and procedure of the authority to hear

claims under the Payment of Wages Act, 1936. [16]
04, 03

Write a note on powers and functions of inspectors under Section 14(4) of

the Payment of Wages Act, 1936. [6]

THE PAYMENT OF WAGES ACT, 1936 90

LABOUR LAW PALLAVI BHOGLE

Dec 05, Dec 02, 97

Introduction: Section 14 of the Act makes provision for three kinds of Inspectors which
are as follows:
(1) An Inspector of factories appointed under Section 8(1) of the Factories Act shall
be an Inspector for the purposes of this Act in respect of all factories within the
local limits assigned to him.
(2) In respect of all persons employed upon a railway otherwise than in a factory, to
whom this Act applies, the State Government is empowered to appoint Inspector
for the purposes of this Act.
(3) The State Government is further empowered to appoint such other persons, as it
thinks fit, as Inspectors for the purposes of this Act in respect of persons
employed in case of factories and industrial or other establishment as specified by
such Government by a Gazette notification. The State Government shall also
define the local limits within which such inspectors shall exercise their functions.

Powers of the Inspectors

Section 14(4} lays down that an Inspector may:

(a) make such examination and inquiry as he thinks fit in order to ascertain whether
the provisions of this Act or rules made thereunder are being observed;
(b) enter, inspect and search any premises of any railway, factory or industrial or
other establishment at any reasonable time for the purposes of carrying out the
objects of this Act. They have power to take any assistance which they think
necessary for any of the above purposes;
(c) supervise the payment of wages to persons employed upon any railway or in any
factory or industrial or other establishment;
(d) require by a written order the production at such place, as may be prescribed, of
any register or record maintained in pursuance of this Act. He can also take on the
spot or otherwise statement of any persons which he considers necessary for
carrying out the purposes of this Act;
(e) seize or take copies of such registers or documents or portions thereof as he may
consider relevant in respect of an offence under this Act which he has reason to
believe has been committed by an employer;
(f) exercise such other powers as may be prescribed.

But according to sub-section (4) of Section 14 no person shall be compelled to answer

any question or make any statement tending to incriminate himself. The provisions of the
Code of Criminal Procedure, 1973 shall, so far as may be, apply to any search or seizure
under this sub-section as they apply to any search or seizure made under the authority or
a warrant issued under Section 94 of the said Code. Every Inspector shall be deemed to
be public servant within the meaning of the Indian Penal Code, 1860.

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LABOUR LAW PALLAVI BHOGLE

Authority to hear claims [S. 15]

The appropriate Government may, by notification, in the official Gazette, appoint

(a) any Commissioner for Workmen’s Compensation

(b) any officer of the Central Government exercising functions as
(i) Regional Labour commissioner
(ii) Assistant Labour Commisioner with at least two years’ experience
(c) any officer of the State Government not below the rank of Assistant Labour
Commissioner with at least two years' experience;
(d) a presiding officer of any Labour Court or Industrial Tribunal, constituted under
the Industrial Disputes Act, 1947, or under any corresponding law relating to the
investigation and settlement of industrial disputes in force in the State;
(e) any other officer with experience as a Judge of a Civil Court or a Judicial
Magistrate.

as the authority to hear and decide for any specified area all claims arising out of
deductions from the wages, or delay in payment of the wages, of persons employed or
paid in that area, including all matters incidental to such claims:

Provided that where the appropriate Government considers it necessary so to do, it may
appoint more than one authority for any specified area and may, by general or special
order, provide for the distribution or allocation of work to be performed by them under
this Act.

The State Government is further empowered to appoint more than one authority for the
same specified area, and where it so appoints it shall, by general or special order, provide
for the distribution or allocation of work to be performed by them under this Act.

Conclusion

THE PAYMENT OF WAGES ACT, 1936 92

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Labour LAW -2 Model Answers -2021

Labour Laws (Karnataka State Law University)

StuDocu is not sponsored or endorsed by any college or university

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Question Bank June 2021

LABOUR LAWS- II

Prepared By:

ABDUL. M. RAWOOTHER
Assistant Professor
Al-Ameen College of Law
Bengaluru

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Q. No. 1. Fundamental rights and directive principles of

state policy are the backbone of industrial jurisprudence
elucidate

SYNOPSIS
1. Introduction
2. Fundamental rights
3. Directive principles of state policy
4. Conclusion

1. Introduction
The concept of labour welfare is necessarily dynamic and varies from country to country, from
time to time and even within the country, variation depends upon different nature of social
institutions, degree of industrialization and general level of social and economic development.
Thus, the concept of welfare can be approached from various outlooks. It is a relative concept,
since it is related to time, place and change with the economic and scientific advancement of
the country. Labour welfare generally refers to betterment of employees, relates to taking care
of the well-being of workers by employers, trade unions, and government and non-
governmental agencies. According to the Royal Commission on Labour (1931) "Labour
welfare is a term which must necessarily be elastic, bearing a somewhat different interpretation
from one country to another, according to the different social customs, the degree for
industrialization and educational level of the workers".
Constitution is the supreme law of a nation and all legislations draw their inspiration from it.
Constitution is a document of social revolution casting an obligation on every instrumentality
including the judiciary to transform the status quo ante into a new human order in which justice,
social, economic and political will inform all institutions of national life and there should be
equality of status and opportunity to all. The trinity of Indian Constitution, the Preamble, the
Fundamental Rights and the Directive Principles of State Policy, embody the fundamental
principles, which provide guide to all legislations, including the labour legislations. This
constitutional trinity assures its citizens to provide "Socialistic Pattern of Society" and create
"Welfare State" and all legislations, specially the Labour legislations, are deeply influenced by
them.

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2. Constitutional framework
The Constitution of India has conferred innumerable rights on the protection of labour. It not only
guarantees some of the fundamental rights to its citizens but also has embodied Directive Principles
of the State Policy for the attainment of a social order based on Justice, Liberty, Equality and
Fraternity. Therefore the Constitution maintains a list of Fundamental Rights and Directive Principles
of the State Policy which refers generally to the upliftment and promotion of the welfare of the people.
Moreover under the Constitution of India, Labour is a subject in the Concurrent List where both the
Central and State Governments are competent to enact legislation subject to certain matters being
reserved for the Centre.
The Constitution protects the life and liberty of an individual, in the Olga Tellis case (AIR 1986 SC
180) the Supreme Court held that Right to livelihood is an integral part of Right to life and hence
will be protected under Article 21. Other than this, the Constitution enlists several provisions which
guarantee protection of the interests of employees and safeguards them against any kinds of
discrimination in matters of public employment some essential provisions in the Constitution are
discussed below.

❖ The Preamble
The importance and utility of the Preamble has been pointed out in several decisions of our Supreme
Court. Though, by itself, it is not enforceable by the court of law, the preamble states the objectives
which the Constitution seeks to establish and promote. Moreover in S. R. Bommai v. Union of India
(1994) 3 SCC 1, the majority of nine Judges laid down a new application of the Preamble under the
Constitution, it was held that the Preamble indicates the basic Structure of the Constitution
The Preamble to our Constitution serves two purposes.
1. It indicates the source from which it derives its authority, <the People=
2. It starts the objectives which it seeks to establish and promote.

The preamble states to secure to all its citizens:

• Justice; Social, Economic and Political
• Liberty of thought, expression, belief, faith and worship
• Equality of status and of opportunity
• Fraternity, assuring the dignity of the individual and unity and integrity of nation

These principles enshrined in Preamble of our constitution provide the bedrock for framing all labour
and social. legislation and their progressive and creative interpretation in favour of working classes.
These principles run through our labour legislations like invisible golden threads and provide them
strength and stamina to meet the aspirations of working classes; whether it is protective legislations,
social security legislations, welfare legislations or even industrial relations legislations, they all

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heavily lean towards working classes due to the philosophy provided in the preamble.

❖ Fundamental Rights
The Fundamental Rights are the basic principles on which the democratic sovereign is founded and
give direction to the state action in clear terms. When these principles are translated into practice, it
leads to the development of a welfare state. Part III (Article 12 to 35) deal with Fundamental Rights

Since the Fundamental Rights have been guaranteed to protect the public from repressive state
actions, judicial decisions tend to expand the scope of word 'State' as defined by Article 12 of the
Constitution. A liberal interpretation is made of the words "other authorities" so as to include any
instrumentality or agency of the Government whether an individual or a corporation like Life
Insurance Corporation (Som Prakash Rakhi v. Union of India (AIR 1981SC 212) or society like the
Indian Statistical Institute registered under the Societies Registration Act, 1960,or a company like
Steel Authority of India. All have to fulfil the tests laid down by the court in their dealings with their
employees. [Ajay Hasia v. Khalid Mujib Sehravardi (AIR 1981 SC 487)

➢ ARTICLE 14 : Right to Equality]

The idea of 8equal protection before the law9 embodied in Article 14 of our Constitution serves as the
philosophical foundation for equal treatment of similarly situated workers by the employer. This
principle finds resonance in the idea of 8equal pay for equal work9 enumerated in Article 39(d) which
is further enforced through the Equal Remuneration Act, 1976. This statutory intervention also holds
importance from the viewpoint of gender-justice since it was a clear command against discrimination
between men and women who performed a similar quantum of work
Article 14 commands State to treat any person equally before the law. It explains the concept of
Equality before law. The concept of equality does not mean absolute equality among human beings
which is physically not possible to achieve. It is a concept implying absence of any special privilege
by reason of birth, creed or the like in favour of any individual, and also the equal subject of all
individuals and classes to the ordinary law of the land.
Thus, the rule is that the like should be treated alike and not that unlike should be treated alike. In
Randhir Singh v. Union of India (AIR 1982 SC 879) the Supreme Court has held that although the
principle of 'equal pay for equal work' is not expressly declared by our Constitution to be a
fundamental right, but it is certainly a constitutional goal under Articles 14, 16 and 39(d) of the
Constitution. This right can, therefore, be enforced in cases of unequal scales of pay based on
irrational classification. This decision has been followed in a number of cases by the Supreme Court
In Dhirendra Chamoli v. State of U.P (AIR 1986 SC 172) it has been held that the principle of equal
pay for equal work is also applicable to casual workers employed on daily wage basis. Accordingly,
it was held that persons employed in Nehru Yuwak Kendra in the country as casual workers on daily

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wage basis were doing the same work as done by Class IV employees appointed on regular basis and,
therefore, entitled to the same salary and conditions of service. It makes no difference whether they
are appointed in sanctioned posts or not. It is not open to the Government to deny such benefit to them
on the ground that they accepted the employment with full knowledge that they would be paid daily
wages. Such denial would amount to violation of Article 14. A welfare State committed to a socialist
pattern of society cannot be permitted to take such an argument.
Fundamental Rights are subject to reasonable restrictions. Therefore, Article 14, dealing with the right
to equality and equal protection of law is subject to reasonable classification as absolute equality is
impossibility. In Charanjit Lal Choudhary v. Union of India (AIR 1951 SC 41) it is observed "The
guarantee... forbids class legislation but does not forbid classification which rests upon reasonable
grounds of distinction". Classification can be on the basis of age, sex (provisions under Factories
Act,1948, Sections 26,27 etc. for children and women), nature of trade profession or occupation
framing rules for recruitment or promotions of public servants to secure efficiency (Gangaram v.
Union of India (AIR 1970 SC 2178), fixing of different minimum wages for different industries
(Chandra Boarding v. State of Mysore (AIR 1970 SC 2042). To be valid, the classification must be
operational and not arbitrary. In the case, Bharatiya Dak Tar Mazdoor Munch v. Union of India, SC
1987, it was held that Classification of employees of P&T Department into regular employees and
casual employees for the purpose of paying the latter less than minimum payable to regular employees
is not tenable and violative of Article 14 and 16 of Constitution. It also amounts to exploitation of
labour and is opposed to clause (2) of Article 38 which provides that the State in particular strive, to
"minimise inequality in income".

➢ ARTICLE 16 : Equality of Opportunity in Matters of Public Employment

Article 16 (1) and (2) of the Constitution guarantees equality of opportunity to all the citizens in matter
of appointment to any office or any other employment under the State. Clauses (3), (4) &(5) lay down,
by way of exceptions, reasonable classification and provisions for backwards and for religious
institutions.
Amita v. Union of India (2005) 13 SCC 721, In this case, the Supreme Court held that the expression
<matters relating to employment or appointment= contained in Article 16(1) includes all matters in
relation to employment both prior and subsequent to the employment which are incidental to the
employment and form part of the terms and conditions of such employment.
Badrinath v. Govt. of T.N. (2000)8 SCC 395, In this case, the Court held that the right to be considered
for promotion by the Departmental Promotion Committee is a fundamental right guaranteed under
Article 16 provided a person is eligible and is in the zone of consideration, but the <consideration=
must be <fair= and according to the established principles governing service jurisprudence.

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➢ ARTICLE 19 : The Right to Form Associations and Unions

Article 19 in its various sub clauses provides, inter alia, freedom of association; freedom to carry on
trade or business and freedom of speech, which are relevant to labour legislation.
In Damyanti Naranga v. The Union of India, 1971 SCR (3) 840, the Supreme Court held that "The
right to form an association", the Court said, "necessarily implies that the person forming the
association have also the right to continue to be associated with only those whom they voluntarily
admit in the association. Any law by which members are introduced in the voluntary association
without any option being given to the members to keep them out, or any law which takes away the
membership of those who have voluntarily joined it, will be a law violating the right to form an
association".
➢ ARTICLE 21 : Right to Livelihood Under Right to Life
Article 21 proclaims that "no person shall be deprived of his life or personal liberty except according
to procedures established by law". With passage of time, and compelling social needs, however, the
courts have given a very liberal and wide interpretation of the terms "life" or "Personal Liberty".

The sweep of the right to life, conferred by Article 21 is wide and far reaching. 'Life' means something
more than mere animal existence. It does not mean merely that life cannot be extinguished or taken
away as, for example, by the imposition and execution of the death sentence, except according to
procedure established by law. That is but one aspect of the right to life. An equally important facet of
that right is the right to livelihood because, no person can live without the means of living, that is, the
means of livelihood. If the right to livelihood is not treated as a part of the constitutional right to life,
the easiest way of depriving a person of his right to life would be to deprive him of his means of
livelihood to the point of abrogation. Such deprivation would not only denude the life of its effective
content and meaningfulness but it would make life impossible to live. There is thus a close nexus
between life and the means of livelihood and as such that, which alone makes it possible to live, leave
aside what makes life livable, must be deemed to be an integral component of the right of life.

Elaborating the same view the Court in Francis Coralie v. Union Territory of Delhi, 1981 SCR (2)
516, said that the right to live is not restricted to mere animal existence. It means something more
than just physical survival. The right to 'live' is not confined to the protection of any faculty or limb
through which life is enjoyed or the soul communicates with the outside world but it also includes
"the right to live with human dignity", and all that goes along with it, namely, the bare necessities of
life such as, adequate nutrition, clothing and shelter and facilities for reading, writing and expressing
ourselves in diverse forms, freely moving about and mixing and commingling with fellow human
being.
In State of Maharashtra v. Chandrabhan Tale, 1983 SCR (3) 327, the Court struck down a provision
of Bombay Civil Service Rules, 1959, which provided for payment of only a nominal subsistence

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allowance of Re. 1 per month to a suspended Government Servant upon his conviction during the
pendency of his appeal as unconstitutional on the ground that it was violative of Article 21 of the
Constitution.
In Olga Tellis v. Bombay Municipal Corporation (AIR 1986 SC 180) popularly known as the
'pavement dwellers case' a five judge bench of the Court has finally ruled that the word 'life' in Article
21 includes the 'right to livelihood' also. The court said: <It does not mean merely that life cannot be
extinguished or taken away as, for example, by the imposition and execution of death sentence, except
according to procedure established by law. That is but one aspect of the right to life. An equally
important facet of that right is the right to livelihood because no person can live without the means of
livelihood. If the right to livelihood is not treated as a part of the constitutional right to life, the easiest
ways of depriving a person of his right to life would be to deprive him of his means of livelihood. In
view of the fact that Articles 39((a).and 41 require the State to secure to the citizen an adequate means
of livelihood and the right to work, it would be sheer pedantry to exclude the right to livelihood from
the content of the right to life.=
In Delhi Development Horticulture Employee's Union v. Delhi Administration (AIR 1992 SC 789)
the Supreme Court has held that daily wages workmen employed under the Jawahar Rozgar Yojna
has no right of automatic regularization even though they have put in work for 240 or more days. The
petitioners who were employed on daily wages in the Jawhar Rozgar Yojna filed a petition for their
regular absorption as regular employees in the Development Department of the Delhi Administration.
They contended that right to life, includes the right to livelihood and therefore, right to work. The
Court held that although broadly interpreted and as a necessary logical corollary, the right to life
would include the right to livelihood and therefore right to work but this country has so far not found
feasible to incorporate the right to livelihood as a fundamental right in the Constitution. This is
because the country has so far not attained the capacity to guarantee it, and not because it considers
it any the less fundamental to life. Advisedly therefore it has been placed in the chapter on Directive
Principles, Article 41 of which enjoins upon the State to make effective provision for securing the
same, "within the limits of its economic development".
In D.K. Yadav v. J.M.A. Industries, 1993 SCC (3) 259, the Supreme Court has held that the right to
life enshrined under Article 21 includes the right to livelihood and therefore termination of the service
of a worker without giving him reasonable opportunity of hearing is unjust, arbitrary and illegal. The
procedure prescribed for depriving a person of livelihood must meet the challenge of Article 14 and
so it must be right, just and fair and not arbitrary, fanciful or oppressive. In the instant case, the
appellant was removed from service by the management of the M/s. J.M.A. Industries Ltd. on the
ground that he had willfully absented from duty continuously for more than 8 days without leave or
prior permission from the management, therefore, "deemed to have left the service of the company
under clause 12(2)(iv) of the Certified Standing Order. But the appellant contended that despite his
reporting to duty every day he was not allowed to join duty without assigning any reason. The Labour

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Court upheld the termination of the appellant from service as legal. The Supreme Court, held that the
right to life enshrined under Article 21 includes right to livelihood and 'therefore' before terminating
the service of an employee or workman fair play requires that a reasonable opportunity should be
given to him to explain his case . The procedure prescribed for depriving a person of livelihood must
meet the requirement of Article 14, that is, it must be right, just and fair and not arbitrary, fanciful or
oppressive. In short, it must be in conformity of the rules of natural justice, Article 21 clubs life with
liberty, dignity of person with means of livelihood without which the glorious content of dignity of
person would be reduced to animal existence. The Court set aside the Labour Court award and ordered
his reinstatement.
InBandhua Mukti Morcha v. Union of India, 1984 SCR (2) 67, it was held that Article 21 assures a
citizen the right to live with human dignity free from exploitation. The Govt. is bound to ensure
observance of social welfare and labour laws enacted to secure for workmen a life compatible with
human dignity. Again in Olga Tellis Supra, this was affirmed
In State of Maharashtra v. Manubhai Pragaji Vashi (AIR 1996 SC 1) the Court has considerably
widened the scope of the right to free legal aid. The right to free legal aid and speedy trial are
guaranteed fundamental rights under Art. 21. Art 39A provides "equal justice" and "free legal aid". It
means justice according to law

➢ ARTICLE 23 : Prohibition of Traffic in Human Beings and Forced Labour

Article 23 of the Constitution prohibits traffic in human being and beggar and other similar forms of
forced labour. The second part of this Article declares that any contravention of this provision shall
be an offence punishable in accordance with law. Clause (2) however permits the State to impose
compulsory services for public purposes provided that in making so it shall not make any
discrimination on grounds only of religion, race, caste or class or any of them. 'Traffic in human
beings' means selling and buying men and women like goods and includes immoral traffic in women
and children for immoral or other purposes. Though slavery is not expressly mentioned in Article 23,
it is included in the expression 'traffic in human being'. Under Article 35 of the Constitution
Parliament is authorized to make laws for punishing acts prohibited by this Article. In pursuance of
this Article, Parliament has passed the Suppression of Immoral Traffic in Women and Girls Act, 1956,
for punishing acts which result in traffic in human beings. The Bonded Labour System Abolition Act,
1976 is also enacted in this regard. Article 23 protects the individual not only against the State but
also private citizens. It imposes a positive obligation on the State to take steps to abolish evils of
"traffic in human beings" and beggar and other similar forms of forced labour wherever they are
found. Article 23 prohibits the system of 'bonded labour' because it is a form of forced labour within
the meaning of this Article. "Beggar" means involuntary work without payment. What is prohibited
by this clause is the making of a person to render service where he was lawfully entitled not to work
or to receive remuneration of the services rendered by him. This clause, therefore, does not prohibit

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forced labour as a punishment for a criminal offence. The protection is not confined to beggar only
but also to "other forms of forced labour". It means to compel a person to work against his will.
In People's Union for Democratic Rights v. Union of India, 1983 SCR (1) 456, it was held that labour
or services for a remuneration less than a minimum wages amounts to "forced labour". In this case, a
letter written to Justice Bhagwati regarding the working conditions of construction workers engaged
in building structures connected with Asian Games was entertained as Writ Petition, setting aside the
technicalities of locusstandi and other procedures. The court held that when judicial redressal is
sought for legal injury suffered by a person or persons who by reason of poverty, disability or socially
or economically disadvantaged position are unable to approach the court and the attention of the court
is drawn to such legal injury by a member of public, even by a letter, the same will be entertained by
the court as a writ petition to bring justice within the reach of the poor masses.
In Bandhua Mukti Morcha v. Union of India (SC 1984) the Apex Court held that Government was
bound to ensure observance of social welfare and labour laws enacted to secure to workmen a life of
basic human dignity. So also, Neerja Choudhary vs. State of M.P. (AIR 1984 SC 1099) held that
wherever it is found that any workman is forced to provide labour for no remuneration or nominal
remuneration, the presumption would be that he is a bonded labour, unless the employer or the state
government proves otherwise. Similarly, the Court said that the plainest requirement of Article 21
and 23 is that bonded labour not only be identified and redressed but also suitably rehabilitated

➢ ARTICLE 24 : Prohibition and Regulation of Child Labour

Article 24 of the Constitution prohibits the employment of children below the age of 14 years in
factories, mines or any other hazardous work. The idea is to protect the health and well being of
children. However, the article does not prohibit the employment of children in easy and less strenuous
work. This is also in consonance with Articles 39(e) and (f) in Part IV of the Constitution which
emphasizes the need to protect the health and strength of workers, and also to protect children against
exploitation. The Child Labour (Prohibition and Regulation) Act, 1986 specifically prohibits the
employment of children in certain industries deemed to be hazardous and provides the scope for
extending such prohibition to other sectors.
➢ ARTICLES 32-35 : Right to Constitutional Remedies
Articles 32 to 35 guarantee the right to constitutional remedies, as right without a remedy is a
meaningless formality. It is the remedy which makes the right real. In view of this, the S.C. has
evolved the innovative strategy by encouraging Public Interest Litigation aimed at providing easy
access to justice to the poor and weaker sections of Indian Society (generally labourers) and giving a
powerful tool to public spirited individuals and social action groups to combat exploitation and
injustice. In the cases like People's Union for Democratic Rights supra, Bandhua Mukti Morcha supra
etc., the S.C. departed from traditional principles of locus standi to entertain even the letter by a
member of public as writ petition to give relief to poor and illiterate workmen.

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❖ Directive Principles of State Policy

An important feature of the constitution is the Directive Principles of State Policy. Although the
Directive Principles are asserted to be "fundamental in the governance of the country," they are not
legally enforceable. Instead, they are guidelines for creating a social order characterized by social,
economic, and political justice, liberty, equality, and fraternity as enunciated in the constitution's
preamble. Part IV, Articles 36 to 51 of the Indian constitution outlines the directive principles that a
state should remember while framing laws for the society. Directive principles call for the provision
of social justice and economic welfare and ensure peace and harmony by trying to remove the
prevalent social evils. They also deals with the concept of Welfare State. These principles act as a
check on the government and as a yardstick to measure government performance. However, these
provisions are not enforceable in any court of law; a fact that makes us questions the relevance of
directive principles. Though earlier decisions of the Supreme Court paid scant attention to the
Directives on the ground that they are not enforceable in law courts, later decisions, specially from
Kesavananda Bharati v. State of Kerala (1973) 4 SCC 225, onwards, the following propositions have
come before the courts for consideration.
1) There is no disharmony between Directive Principles and Fundamental Rights. They supplement
each other.
2) Even Fundamental Rights can not be ensured unless Directive Principles are implemented.
3) Parliament is competent to amend or abrogate any Fundamental Right to enable state to implement
Directives
In Minerva Mills v. Union of India (AIR 1980 SC 1789) it was held that Directive Principles and
Fundamental Rights should be harmonised without considering Directives as inferior and subservient
to Fundamental Rights. Similarly a law which is inconsistent with Directives should be regarded as
unreasonable while any action taken to give effect to any of the Directives should be regarded as
reasonable (Kasturi Lal Lakshmi Reddy v. State of Jammu And Kashmir, 1980 SCR (3)1338)
Coming to the Directive Principles of State Policy enumerated in Part IV of the Constitution, Article
38 reflects the intent of the State to work towards an egalitarian society where there is equal
opportunity for all citizens and social justice prevails. In this respect Articles 39, 39-A, 41, 42, 43 and
43-A are considered to be the 8magna carta9 of industrial jurisprudence in the Indian context.
collectively it can be also termed as <Magna Carta of working class in India.=
➢ ARTICLE 39 : Certain principles of policy to be followed by the state
Articles 39 declares that the state shall, in particular, direct its policy towards securing
a) that the citizens, men and women equally, have the right to an adequate means of livelihood;
b) that the ownership and the control of the material resources of the community are so distributed
as to best subserve the common good;
c) that the operation of the economic system does not result in concentration of wealth and means of
production to the common detriment;

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d) that there is equal pay for equal work for both men and women;
e) the health and strength of the workers, men and women and the tender age of the children not
abused and that the citizens are not forced by economic necessity to enter the avocations unsuited to
their health and strength;
f) the children are given opportunities and facilities to develop in a healthy manner and in condition
of freedom and dignity and are protected against exploitation against moral and material
abandonment.
➢ ARTICLE 39A : Equal justice and free legal aid
The State shall secure that the operation of the legal system promotes justice, on a basis of equal
opportunity, and shall, in particular, provide free legal aid, by suitable legislation or schemes or in
any other way, to ensure that opportunities for securing justice are not denied to any citizen by reason
of economic or other disabilities. The Legal Services Authorities Act,, 1987 aims towards this
objective.
➢ ARTICLE 41 : Right to work, to education and to public assistance in certain cases
It directs that the State shall within the limit of its economic capacity and development make effective
provision for securing right to work, to education, and to public assistance in case of unemployment,
old age, sickness and disablement and in other cases of undeserved want. Right of Children to Free
and Compulsory Education Act or Right to Education Act (RTE) , 2009 and Mahatma Gandhi
National Rural Employment Guarantee Act (MNNREGA), 2005. These two are important Acts in
this regard.
➢ ARTICLE 42 : Provision for just and humane conditions of work and maternity relief
It recommends that the State shall make provision for securing just and humane conditions of work
and for maternity relief and the same is done by way of the Factories Act, 1948 and Maternity Benefit
Act, 1961.
➢ ARTICLE 43 : Living wage, etc., for workers
It directs that the state shall endeavour to secure, by suitable legislation or economic organisation or
in any other way to all workers, agricultural, industrial or other living wage, conditions of work
ensuring a decent. standard of life and full enjoyment of leisure and social and cultural opportunities
and, in particular, the state shall endeavour to promote cottage industries on an individual or
cooperative basis in rural areas. The Minimum Wages Act, 1948 etc. serves this purpose.
➢ ARTICLE 43A : Participation of workers in management of industries
Article 43-A which was introduced by the 42nd Amendment in 1976, has a direct bearing on labour
laws, in so far as it provides that the State shall take steps by suitable legislation or any other means
to secure the participation of workers in the management of industrial establishments. The other
principles enumerated in Part IV which have a bearing on Labour Laws are Article 45 that talks about
the obligation to provide free and compulsory education for the promotion of educational and
economic interests of weaker sections and Article 47 that emphasizes the need for improvement in
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the level of the standard of living and of public health. Certainly these Articles envisage labour
legislation as reasonable restrictions upon certain fundamental rights, ,specially freedom of business.
Thus an employer must pay minimum bonus even during a year of loss. - (Jalan Trading Co. (P) Ltd.
V. D.M. Aney, AIR 1979 SC 233) This would mean that workers would no longer be hired labourers,
but partners, (Hindustan Tin Works v. Employers - SC 1979, Gujarat Steel Tubes v.. Mazdoor Sabha
- SC 1980) interested in the success of the enterprise and would have share in the profits. All these
are fine. But while inserting Article 5IA - Fundamental Duties, no mention was made of their duty
nor even moral obligation to refrain from slowing down, striking etc. without observing legal
formalities

Conclusion
The Indian labour legislations are based on the principles of Welfare State and attempted incorporate
the same spirit of constitution in different enactments. As the directive principles of state policy has
entrusted the responsibility of implementing the programmes and policies laid down in the
constitution as announced in the Constituent Assembly a series of Labour Legislations were enacted.
The legislations enacted to safeguard and promote the interest of labour covering several aspects as
fair wages and regular payments, working conditions, holidays and leave, safety and health,
conditions of works, labour welfare, social security, industrial relations, protection of interest of
women and child labour, labour indebtedness, housing, recruitment and training. The legislations
cover all workers engaged in factories mines, plantations, railways, motortransport, shops, etc. The
Constitution of India has given clear direction to the Centre and State Government to ensure all-round
development of labour in every walk of life and they should not lag behind either in social or in
political life. The labour legislations enacted after the introduction of constitution aims at achieving
this end.

Q. No. 2. Explain the objective of equal renumeration act .

SYNOPSIS
1. Introduction
2.
3. Sexual harassment of women at workplace as a problem
4. Need for appropriate and effective legislation
5. National legislative framework
6. Salient features of Sexual Harassment of Women at Workplace Act
7. Conclusion

1. Introduction
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Under the Industrial Laws the women have been bestowed the special position in the view of their unique
characteristics, physically, mentally and also biologically. As the Constitution of India, 1950 is the basic law
of land which enshrines number of provisions of prohibit gender discrimination and protect the interest of
women, whether it is political field or industrial field. The State under its constitutional power had formulated
number of legislations pertaining to women engaged in industrial activities. Though labour welfare enactments
have provided various protections, safeguards and benefits to working women in our country, there was an
emergent need to give more protection to female workers who are discriminated as regards employment and
wages. Generally speaking, the wages of women have traditionally tended to lag behind those of men, except
in a very few cases. Moreover, the net earnings of women invariably happen to be lower than those of men.
Women all over the world, had till recently been very much inarticulate and were prepared to accept lower
wages even when they were employed on the same jobs as men. Even in the economically and socially
advanced countries while remarkable progress has been made, discrimination still exists. The principle of equal
value has not been always fully implemented. In India, in the initial stages when legislation for the protection
of workers was hardly thought of, factory owners taking advantage of the backwardness and social handicaps
of the poorer classes, recruited women on a large scale at lower wages and made them work under inhuman
conditions. Discrimination against women workers has hampered our economic growth and social development
for too long.

International Conventions

Gender Justice is an important ingredient of every civilized society. It9s no longer the popular mindset that the
female is a weaker sex. To imbibe this principle in the society, various steps were taken at the international
level:

• The ILO Convention No. 100, <The Convention concerning Equal Remuneration for Men and Women
Workers for Work of Equal Value, or Equal Remuneration Convention, 1951=
; • The ILO Convention No. 111 regarding Discrimination in Employment and Occupation, 1958;
• The Universal Declaration of Human Rights, under Article 23 ensures that everyone without any
discrimination has the right to equal pay for equal work;
• The Convention on Elimination of all form of Discrimination, 1979 has it9s the main objective to prevent
discrimination especially in the case of women.

The Indian Constitution

The Apex Court in Associate Bank Officers Association v. State Bank of India, 1998 (1) SCC 429, has
explained the history and evolution of the principle "equal pay for equal work". Historically, equal pay for
equal work has been/a slogan of the women9s sex based discrimination in the pay scales of men and women
doing same or equal work in the same organisation. It is meant to prevent discrimination on the ground of
sex, against women in the matter of employment.

At the national level, certain legislations were enacted by the British India. But it9s the national leaders,
freedom fighters and intellectuals and the democratic movements sweeping the world over brought about

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positive changes in the position of women and in achieving equality.

The Principle of <Equal Pay for Equal Work= → Article 39(d)

The principle of equal pay for equal work is contained in Clause (d) of Article 39 of the Indian Constitution
which envisages that the State shall, in particular, direct its policy towards securing that there is equal pay for
equal work for both men and women. This principle implies that where all things are equal, that is, where all
relevant considerations are the same, persons holding identical posts may not be treated differently in the
matter of their pay merely because they belong to different departments. Of course, if officers of the same
rank perform dissimilar functions and the powers, duties and responsibilities of the posts held by them vary,
such officers may not be heard to complain of dissimilar pay merely because the posts are of the same rank
and the nomenclature is the same.

In Randhir Singh v. Union of India (1982) LLJ 344, the Supreme Court held that the principle of
equal pay for equal work though not a fundamental right is certainly a constitutional goal and
therefore capable of enforcement through constitutional remedies under Article 32 of the
Constitution. Article 39 (d) of the Constitution proclaims <equal pay for equal work for both men
and women= as the directive principle of State policy. Equal pay for equal work for both men
and women means equal pay for equal work for everyone and as between sexes. Directive
principles. has been pointed out in some of the judgment of this court have to be read into the
fundamental rights as the matter of interpretation. Article 14 of the Constitution enjoins the State
not to deny any person equality before the law or equal protection of the laws and Article 16
declares that there shall be equality of opportunity for all citizens in matters relating to
employment or appointment to any office under the State. These equality clauses of the
Constitution must mean something to every one. To the vast minority of the people the equality
clauses of the Constitution would mean nothing if they are unconcerned with the work they do
and the pay get. To them the equality clauses will have some substance if equal work means
equal pay. The preamble to the Constitution declares the solemn resolution of the people of India
to constitute India into a sovereign socialist democratic republic. Again the word 'socialist' must
mean something. Even if it does mean 'to each according to his need' it must at least mean 8equal
pay for equal work9

In Surindher Singh v. Engineer-in-chief C. P. W. D. (AIR 1986 SC 534) the doctrine of equal

pay for equal work is applicable to persons employed on a daily wage basis. Daily wagers are
entitled to the same wages as other permanent employees in the department employed to do the

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identical work. Equal pay for equal work finds its place in the Directive Principles of State Policy
and it is an accompaniment of equality clause enshrined in Articles 14 and 16 of the Constitution
of India. Nevertheless the abstract doctrine of equal pay for equal work cannot be read in Article
14. Reasonable classification based on intelligible criteria, having nexus to the object sought to
be achieved, is permissible.

Salient Features of the Act

With a view to give effect to the goal of equal pay for equal work set out in clause (d) of Article
39 of the Constitution and Equal Remuneration Convention of the ILO, the President of India
promulgated on 26th September, 1975, the Equal Remuneration Ordinance, 1975 so that the
above Directive Principle could be implemented in the year which was being celebrated as the
International Women9s year. The above Ordinance was later converted into an Act as Act No. 25
of 1976. The Equal Remuneration Act, 1976 provides for the payment of equal remuneration to
men and women workers and for prevention of discrimination, on the ground of sex, against
women in the matter of employment and for matters connected therewith or incidental thereto.
The Act ensures against discrimination in recruitment and promotion of men and women. It
provides for the setting up of Advisory Committees to promote employment opportunities for
women. It consist of III Chapters and 18 Sections.

Object of the Act

The preamble of the Act states that it is an Act to provide for the payment of equal remuneration
to men and women workers and for the prevention of discrimination, on he ground of sex, against
women in the matter of employment and for matters connected therewith or incidental thereto.

Duties of Employer

(A) Duty of employer to pay equal remuneration to men and women workers for same work or
work of a similar nature. (Sec. 4)

As per Sec. 4 of the Act, no employer shall pay to any worker, employed by him in an
establishment or employment, remuneration, whether payable in cash or in kind, at rates less

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favourable than those at which remuneration is paid by him to the workers of the opposite sex in
such establishment or employment for performing the same work or work of a similar nature.
Further no employer shall, for the purpose of complying with the provisions of sub-section (1),
reduce the rate of remuneration of any worker.

In M/s. Mackinnon Mackenzie and Co. Ltd. v. Andrey D9Costa and another supra, a female
confidential stenographer after the termination of her services filed a petition under sub-section
(1) of Section 7 of the Equal Remuneration Act, 1976 complaining that during the period of her
service she was paid remuneration at lesser rates than those of male stenographers who were also
performing same or similar work. The employer contended that the lady was working as a
Confidential Stenographer and is part of a different class. The court rejected the plea of the
employer that the woman was in a different class. It held, 8If only women are working as
Confidential Stenographers it is because the management wants them there. Women are neither
specially qualified to be Confidential Stenographers nor disqualified on account of sex to do the
work assigned to the male Stenographers. Even if there is a practice in the establishment to
appoint women as Confidential Stenographer such practice cannot be relied on to deny them
equal remuneration due to them under the Act.9 Therefore, the Court applied the Equal
Remuneration Act to grant equal salary to female stenographers.

➢ Exception (Sec. 16

<Where the appropriate Government is, on a consideration of all the circumstances of the case,
satisfied that the differences in regard to the remuneration, or a particular species of
remuneration, or men and women workers in any establishment or employment is based on a
factor other than sex, it may, by notification, make a declaration to that effect, and any act of the
employer attributable to such a difference shall not be deemed to be contravention of any
provision of this Act.=

In C. Girijambal v. Government of AP, [(1981) 2 SCC. 155], it has been held that the principal
of equal pay for equal work is not applicable in professional services. In M/s. Mackinnon
Mackenzie and Co. Ltd. v. Andrey D9Costa and another supra, It was also held that the Act does
not permit the Management to pay to a section of its employees doing the same work or work of
a similar nature lesser pay contrary to Section 4(1) of the Act because of its financial position
which does not permit payment of equal remuneration to all. The applicability of the Act does
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not depend upon the financial ability of Management to pay equal remuneration as provided by
the Act.

In Ashok Kumar Garg v. State of Rajasthan, [(1994) 3 SCC 357] it has been observed that the
question of equal work depends on various factors like responsibility, skill, effort and condition
of work.
In State of AP and others v. G Sreenivasa Rao & others, 1989 SCC (2) 290, It was held that
equal pay for equal work does not mean that all the members of the same cadre must receive the
same pay packet irrespective of their seniority, source of recruitment, educational qualifications
and various other incidents of service.

No discrimination to be made while recruiting men and women workers (Sec.5)

As provided under Section 5 of the Act, no employer shall be allowed to make discrimination
while making recruitment for the same work or work of a similar nature or make any
discrimination on the basis of sex unless that particular employment of women or men is
restricted or prohibited by any statute. Therefore, in matter of recruitment policy and condition
of service such as promotions, training or transfer, the employer is not authorised to make
discrimination against women only on the basis of sex. This provision is similar to the provision
contained in Article 16(1) of the Constitution of India, 1950.

Provided that the provisions of this section shall not affect any priority or reservation for
scheduled castes or scheduled tribes, ex-servicemen, retrenched employees of any other class or
category of persons in the matter of recruitment to the posts in an establishment or employment.

(C) Duty to Maintain Registers (Sec. 8)

As per section 8, it is the duty of every employer, to maintain registers and other documents in
relation to the workers employed by him in the prescribed manner.

Advisory Committee (Sec. 6)

(1) For the purpose of providing increasing employment opportunities for women, the
appropriate Government shall constitute one or more Advisory Committees to advise it with

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regard to the extend to which women may be employed in such establishments or

employments as the Central Government may, by notification, specify in this behalf.
(2) Every Advisory Committee shall consist of not less than ten persons, to be nominated by the
appropriate Government, of which one-half shall be women.
(3) In tendering its advice, the Advisory Committee shall have regard to the number of women
employed in the concerned establishment or employment, the nature of work, hours of work,
suitability of women for employment, as the case may be, the need for providing increasing
employment opportunities for women, including part-time employment, and such other
relevant factors as the Committee may think fit
(4) The Advisory Committee shall regulate its own procedure.
(5) The appropriate Government may, after considering the advice tendered to it by the Advisory
Committee and after giving to the persons concerned in the establishment or employment an
opportunity to make representations, issue such directions in respect of employment of
women workers, as the appropriate Government may think fit.

Power of Appropriate Government to Appoint Authorities for Hearing and Deciding Claims
and Complaints (Sec. 7)
The appropriate Government may, by notification, appoint such officers, not below the rank
of a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and
deciding4
(a) complaints with regard to the contravention of any provision of this Act;
(b) claims arising out of non-payment of wages at equal rates to men and women workers
for the same work or work of a similar nature, and may, by the same or subsequent
notification, define the local limits within which each, such authority shall exercise its
jurisdiction.

Inspectors (Sec. 9)

The appropriate Government may, by notification, appoint such persons as it think fit to be
Inspectors for the purpose of making an investigation as to whether the provisions of this Act, or
the rules made thereunder, are being complied with by employers, and may define the local limits
within which an Inspector may make such investigation. Every Inspector shall be deemed to be
a public servant, they have certain powers to enter the premises of establishments and inspect
and investigate the affairs pertaining to equal remunerati

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Q. No. 3. Discuss the role of ILO for social security of labour.

SYNOPSIS
1. Introduction
2. ILO and Social security
3. Conventions and Recommendations Relating to Social Security
4. ILO and India
5. Conclusion

1. Introduction
The International Labour Organization (ILO) is the only tripartite U.N. agency, since 1919
which brings together governments, employers and workers of 187 member States to set labour

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standards, develop policies and devise programmes promoting decent work for all women andmen.
India is a founder member of ILO.

In 1969, the organization received the Nobel Peace Prize for improving fraternity and peace
among nations, pursuing decent work and justice for workers, and providing technical
assistance to other developing nations.

The ILO has developed a system of international labour standards aimed at promoting
opportunities for women and men to obtain decent and productive work, in conditions of
freedom, equity, security and dignity.

ILO9s work in the field of social security has been pioneering. From the date of its inception,
1919, ILO has been constantly engaged in formulating standards with a view to extending
social security benefit to larger section of people in greater number of contingencies. The
Philadelphia Declaration recognizes the solemn obligation of the ILO to further among nations
of the world programmes which will have to achieve <the extension of social security measures
to provide a basic income to all in need of such protection and comprehensive medical care=.
Co-ordination of social security legislations among countries has been a major concern of ILO
along with international and intergovernmental organizations in the social security field.
International Labour Office serves as the secretariat of the International Social Security
Association which groups together government services as well as central institutions and
national unions for social security of different countries. ILO sets ideal standards for their
universal application to ameliorate the working conditions of the workers and to ensure social
justice to them. These universal standards are known as Conventions and Recommendations.

2. ILO and Social Security

The ILO is the UN9s agency with a mandate to improve standards, conditions and social
security of workers throughout the world. The ILO9s most important function is to adopt
Conventions and Recommendations, which set minimum labour standards internationally. The
principles embodied in the conventions, if adopted and ratified, impose a duty to comply on
the ratifying states

The ILO has played a major role in developing an international defined normative framework
guiding the establishment, development and maintenance of social security systems across the
world and has become the world9s leading point of reference for efforts to this end.

Following its establishment in 1919 and being the first to recognise the right to social security
in 1944 through the Declaration of Philadelphia, now appended to the ILO Constitution, the
Organization9s tripartite constituents (Governments, employer9s and workers organisations of
the ILO9s 187 member States) have elaborated and adopted a series of Conventions and
Recommendations establishing social security as a separate branch of international law and
providing a framework to enhance and extend social protection in countries from all regions of
the world.

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Social security was established as a basic human right in the ILO9s Declaration of Philadelphia
(1944) and its Income Security Recommendation, 1944 (No. 67). This right is upheld in the
Universal Declaration of Human Rights, 1948, and the International Covenant on Economic,
Social and Cultural Rights, 1966. The ILO has progressively developed the normative content
of the right to social security since the adoption of its constitution in 1919; laying the
foundations for the establishment of a separate branch of international law, namely international
social security law. There are about 31 conventions and 24 recommendations adopted in the area
of social security between 1919 and 2012 by the ILO9s tripartite constituents.

❖ What makes ILO’s social security standards unique?

ILO social security standards provide a set of inter-nationally accepted norms for its member
States since the ILO9s establishment in 1919. They comprise Conventions, Protocols to these
Conventions, as well as Recommendations.

Unlike other international treaties, ILO standards are adopted by the International Labour
Conference by a 2/3 majority of the votes of its tripartite stakeholders 3 a feature that guarantees
they are the result of a participatory process and fully correspond to the diverse needs of all
ILO member States and constituents. Once adopted, these standards represent a major
international and national reference point crystallizing consensus that can be used to build
consensus at the national level during reforms and for improving the available protection
mechanisms.

ILO Member States that ratify ILO Conventions assume the legal obligations and duties
contained in the Convention upon its entry into force and need to demonstrate compliance with
these minimum requirements periodically in law and in practice. The application of ratified
ILO Conventions is monitored by a supervisory machinery based on periodic reporting to
demonstrate compliance and special complaint-based procedures.

ILO Recommendations provide non-binding guidelines based on best practices. They are not
open to ratification, but provide essential guidance for ILO member States in formulating their
national social protection strategies and legal frameworks, and designing, implementing and
monitoring their social protection systems.

3. Conventions and Recommendations Relating to Social Security

The ILO has done the pioneering work in the field of social security. It have made many efforts
regarding social security at international level by number of Conventions and
Recommendations. A number of recommendations and conventions deal with workmen9s
compensation, sickness insurance, invalidity, old-age, and survivor9s insurance,
unemployment provisions, maternity protection and general aspects of social security.
Important among them are discussed below.

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An essential means of action available to the ILO for the realization of its mandate of extending
social security to all is the setting of international labour standards. Since 1919, the ILO has
adopted 31 Conventions and 23 Recommendations in this area, which have greatly contributed
to the development of social security as a universal human right3 notably by laying down
specific obligations and guidelines for member States. In 2002, the ILO Governing Body
confirmed 8 out of these 31 Conventions as Up-to-date Social Security Conventions.

i. Social Security (Minimum Standards) Convention, 1952 (No. 102);

ii. Equality of Treatment (Social Security) Convention, 1962 (No. 118);
iii. Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980] (No. 121);
iv. Invalidity, Old-Age and Survivors9 Benefits Convention, 1967 (No. 128);
v. Medical Care and Sickness Benefits Convention, 1969 (No. 130);
vi. Maintenance of Social Security Rights Convention, 1982 (No. 157);
vii. Employment Promotion and Protection against Unemployment Convention, 1988 (No.
168);
viii. Maternity Protection Convention, 2000 (No. 183).
Out of these eight Up-to-date Social Security Conventions, India has ratified only one
convention, Equality of Treatment (Social Security) Convention, 1962 (No. 118).
(i) Social Security (Minimum Standards) Convention, 1952 (No. 102)

A key reference for the development of social security systems, Convention No. 102 is the
flagship of the up-to-date social security Conventions since it is deemed to embody the
internationally accepted definition of the very principle of social security. It sets out, into a
single, comprehensive and legally binding instrument, the minimum standards for each of the
nine classical branches of social security.

It is the only international Convention that defines the nine branches of social security, sets
minimum standards for each of these branches, and lays down principles for the sustainability
and good governance of those schemes. It is considered as a tool for the extension of social
security coverage and provides ratifying countries with an incentive for doing so by offering
flexibility in its application, depending on their socio-economic level. It came into force on
April 27, 1955. By January 2019, 55 countries had ratified the Convention. India has not
ratified the Convention yet. The Convention has divided social security into nine components.
In other words the Convention consolidates the main provisions of the ILO instruments relating
social security and establishes minimum standards for 9 fundamental branches of social
security namely:

(a) Medical care;

(b) Sickness benefit;
(c) Unemployment benefit;
(d) Old-age benefit;
(e) Employment injury benefit;
(f) Family benefit;
(g) Maternity benefit;

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(h) Invalidism benefit; and

(i) Survivor9s benefit.

The Convention sets minimum objectives for each contingency with regard to population
coverage, benefit adequacy and qualifying conditions, as well as a set of key principles.
Another unique feature of Convention No. 102 is that it contains flexibility clauses, to ensure
that it could be applied in all national circumstances, the convention offers states the possibility
of ratification by accepting at least three of its nine branches and of subsequently accepting
obligations under other branches, thereby allowing them to progressively attain all the
objectives set out in the convention. The level of minimum benefits can be determined with
reference to the level of wages in the country concerned. Temporary exceptions may also be
envisaged for countries whose economy and medical facilities are insufficiently developed,
thereby enabling them to restrict the scope of the convention and the coverage of the benefits
granted.
(ii) Equality of Treatment (Social Security) Convention, 1962 (No. 118)

Convention No. 118 addresses the issue of the social security of migrant workers in a global
manner. It covers the nine branches of social security and provides that, for each branch
accepted under the Convention, a ratifying State undertake to grant equality of treatment to
nationals of other ratifying States (and their dependents) with its own nationals (including
refugees and stateless persons, if specifically accepted) within its territory. Convention No. 118
further lays down the principle of the provision of benefits abroad and the need to endeavour
to participate in schemes for the maintenance of acquired rights and rights in the course of
acquisition under the legislation of the nationals of the States for which the Convention is also
in force. India has ratified this Convention on August 16, 1964.

(iii). Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980]

(No.121)

The contingencies covered by Convention No. 121 includes: a morbid condition, incapacity for
work, invalidity or a loss of faculty due to an industrial accident or a prescribed occupational
disease, and the loss of support as a result of the death of the breadwinner following
employment injury. It belongs to ratifying States to define the notion of <industrial accident=,
including the conditions under which this notion applies to commuting accidents. Convention
No. 121 indicates the cases in which accidents should be considered by national legislation as
industrial accidents and under which conditions the occupational origin of the disease should
be presumed. The national list of employment-related diseases has to comprise at least the
diseases enumerated in Schedule I to the Convention. Convention No. 121 envisages that all
employees, including apprentices in the public and private sectors, and in cooperatives, are to
be protected. The Convention further lays down three types of benefits: medical care, cash
benefits in the event of incapacity for work and loss of earning capacity (invalidity), and cash
benefits in the event of the death of the breadwinner.

(iv). Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128)

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Reflecting the trend to find all three long-term benefits (i.e. invalidity, old-age and survivors9
benefits) in a single national pension system, Convention No. 128 regroups these three
branches into one instrument and extends coverage to all employees, including apprentices, or
not less than 75 per cent of the whole economically active population, or all residents whose
means during them contingency do not exceed certain limits. It further sets the periodical
payment rate for invalidity benefit to at least 50 per cent of the reference wage and envisages
the adoption of measures for rehabilitation services. In the case of old-age and survivors9
benefit, the minimum amount should correspond to at least 45 per cent of the reference wage.
(v). Medical Care and Sickness Benefits Convention, 1969 (No. 130) and Medical Care and
Sickness Benefits Recommendation, 1969 (No. 134)

It applies to medical care and sickness benefit of the employees. Convention No. 130 covers
both the contingency of medical care benefits and cash sickness benefit reflecting the trend to
establish comprehensive health insurance systems. All employees, including apprentices, or at
least 75 per cent of the whole economically active population, or all residents whose means do
not exceed certain limits should be covered for both contingencies. In relation to medical care,
wives and children of employees should also covered. Convention No. 130 further extends the
medical care required under Convention No. 102 to dental care and medical rehabilitation,
including the supply, maintenance and renewal of prosthetic and orthopaedic appliances. It also
provides for entitlement to benefit throughout the contingency and restricts the possibility of
limiting the duration of sickness benefits; a limitation corresponding to 26 weeks is only
authorized where the beneficiary ceases to belong to the categories of persons protected and if
the sickness started while the beneficiary still belonged to such categories.
(vi). Maintenance of Social Security Rights Convention, 1982 (No. 157) and Maintenance
of Social Security Rights Recommendation, 1983 (No. 167)

Convention No. 157 and its accompanying Recommendation No. 167 specifically address the
issue of the maintenance of social security rights of migrant workers and complement
Convention No. 118, focusing on equality of treatment and exportability. Unlike Convention
No. 118 however, which allows State Parties to choose one or more out of the nine branches,
Convention No. 157 applies to all branches regardless of the type of scheme: general and
special, contributory and non-contributory, as well as schemes consisting of obligations
imposed on employers by legislation. The objective of Convention No. 157 is to promote a
flexible and broad form of coordination between national security schemes and in particular
through the conclusion of bilateral or multilateral social security agreements. Convention No.
157 also establishes a system based on the principle of the maintenance of acquired rights and
the rights in the course of acquisition. Recommendation No. 167 proposes model provisions
for the conclusion of bilateral or multilateral social security agreements regarding all
contingencies and provides rules on maintaining social security rights and exporting benefits.
It also proposes a model agreement for the coordination of bilateral or multilateral social
security instruments.

(vii). Employment Promotion and Protection against Unemployment Convention, 1988 (No.
168)

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The main aim of Convention No. 168 is twofold: the protection of unemployed persons through
the provision of benefits in the form of periodical payments and through the promotion of
employment. Convention No. 168 therefore recognises the value of linking social security to
broader social and economic policies directed at one priority goal: the promotion of full,
productive and freely chosen employment. In addition to provided benefits in case of
unemployment at a minimum replacement rate of 50 per cent of the reference wage, ratifying
States are therefore also called to adopt appropriate steps to coordinate their system of
protection against unemployment and their employment policy. The system of protection
against unemployment should therefore be such to encourage employers from offering, and
workers from seeking, productive employment. Persons protected must comprise prescribed
classes of employees, constituting not less than 85 per cent of all employees, including public
employees and apprentices, or all residents whose resources during the contingencies do not
exceed prescribed limits.
(viii). Maternity Protection Convention, 2000 (No. 183)

Under Convention No. 183, all employed women, including those in atypical forms of
dependent work, should be covered for pregnancy, child birth and their consequences. In
particular, persons protected should be entitled to maternity benefits for a minimum period of
14 weeks (including six weeks of compulsory leave after childbirth) at not less than two-thirds
of their previous earnings. The medical benefits provided to protected persons must include
prenatal, childbirth and post-natal care. Convention No. 183 also lays down the right to work
breaks for breastfeeding, as well as provisions relating to health protection, employment
protection and non-discrimination.

• Recommendations

➢ Income Security Recommendation, 1944 (No. 67) and Medical Care

Recommendation, 1944 (No. 69)

Recommendations No. 67 and 69 are at the origin of the development of social security in ILO
instruments and can be considered the blueprint for comprehensive social security systems.
Together, they establish a comprehensive system of income security and medical care
protection for each of the nine classical branches of social security in addition to general
neediness (called <general want= in 1944), with the objective of relieving want and preventing
destitution. Recommendation No. 67 and No. 69 are grounded on the guiding principle of
universal coverage following which income security and medical care services should be
extended to the population as a whole through a combination of social insurance and social
assistance.

➢ Social Protection Floors Recommendation, 2012 (No. 202)

Recommendation No. 202 is the first international instrument to offer guidance to countries to
close social security gaps and progressively achieve universal protection through the
establishment and maintenance of comprehensive social security systems. To this aim, the
Recommendation calls for (1) the implementation, as a priority, of social protection floors (SPF)

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as a fundamental element of national social security systems and as a starting point for countries
that do not have a minimum level of social protection; and (2) the extension of social security
with a view to progressively ensure higher levels of social security to as many people as
possible according to national economic and fiscal capacity and as guided by ILO9s other social
security standards. Social protection floors should comprise at least four basic social security
guarantees including access to essential health care and basic income security for children,
persons of active age who are unable to earn sufficient income, and older persons and should
be set at a level that allows people to live in dignity. Through the social protection floors
concept, Recommendation No. 202 provides the minimum core content of the human right to
social security. A major achievement of Recommendation No.202 is the policy guidance it
offers States to give effect to their general and overall responsibility to establish and maintain
these comprehensive social security systems. It does this through a set of principles that provide
instructions for the design and implementation of social security programs. These guiding
principles intentionally echo both fundamental human rights principles but also core principles
related to the good governance, delivery and financing of social security systems.

➢ Transition from the Informal to the Formal Economy Recommendation, 2015 (No.
204)

This Recommendation recognizes the lack of protection of workers in the informal economy,
and provides guidance for improving their protection and facilitating transitions to the formal
economy. It also includes guidance on the extension of social security coverage to workers in
the informal economy and its role in facilitating transitions to the formal economy.

Other than these there are other certain Conventions and Recommendations pertaining to social
security which are playing a pivotal role in protecting the interest of working classes. ILO
standards on social security provide for different types of social security coverage under
different economic systems and stages of development. Social security Conventions offer a
wide range of options and flexibility clauses which allow the goal of universal coverage to be
reached gradually.

4. ILO and India

India, a Founding Member of the ILO, has been a permanent member of the ILO Governing
Body since 1922. The first ILO Office in India started in 1928. The decades of productive
partnership between the ILO and its constituents has mutual trust and respect as underlying
principles and is grounded in building sustained institutional capacities and strengthening
capacities of partners. It has a two-directional focus for socio-economic development: overall
strategies and ground-level approaches.

Among all Conventions, India has ratified these Conventions relating to social security:

They are:
(i) Workmen9s Compensation (Occupational Diseases) Convention, 1925 (No. 18);

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(ii) Equality of Treatment (Accident Compensation) Convention 1925 (No. 19);

(iii) Workmen9s Compensation (Occupational Diseases) Convention (Revised), 1934 (No. 42);
and
(iv) Equality of Treatment (Social Security) Convention, 1962 (No. 118).

ILO, an organization committed to the case of social justice, India a welfare state committed
to the same goal. The approach of India with regard to international labour standards always
has been positive. The ILO instruments have provided <guidelines and useful framework for
the evolution of legislative and administrative measures for the protection and advancement of
interest of workers=. But, India9s response to ratification of ILO Conventions relating to social
security has been poor. But effective implementation of the ILO Convention can be noticed
though legislations and administrative actions.

5. Conclusion
The role of the International Labour Organisation since its inception in 1919 gave an added
dimension to the effectuation of social security measures not only in the advanced countries
but in the developing world as well. Through many conventions and recommendations the ILO
exerted its influence to extend the range of security and the classes of persons protected there
under.

The ILO social security standards represent a unique set of legal instruments that give a
concrete meaning to the human right to social security enshrined in the Universal Declaration
on Human Rights (1948) and in the International Covenant of Economic, Social and Cultural
Rights (1966). All ILO standards are negotiated and adopted by the Governments, workers and
employers9 representatives of the ILO9s 187 member States.

ILO social security standards, and notably the landmark Social Security (Minimum Standards)
Convention, 1952 (No. 102), are globally recognized as a key reference for the design of rights-
based, sound and sustainable social protection systems. They are also being used as a reference
by human rights bodies to assess the implementation of the human right to social security and,
at the regional level, as a model for crafting regional social security instruments.

Q. No. 4. Enumerate the salient features of the Unorganized Workers'

Social Security Act, 2008. Critically Comment on its implementation.

SYNOPSIS
1. Introduction
2. Salient features of the Unorganized Workers’ Social Security Act
3. Implementation of the Act
4. Conclusion

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1. Introduction
The role of Unorganised labour in providing various products to meet out the basic necessaries
of life has not been less significant than the organised labour. It is another matter that they had
lesser bargaining power and thus have been subject to exploitation. They could not get
appropriate price of their untiring labour invested in industrial processes. Although their
percentage in the total employment in the country has been more, nevertheless the measures of
social security could not be provided to them in the proper and needful manner. It was the need
of the day to provide to them coverage and the protection of the umbrella of the Social Security
as enshrined in the Directives laid down in the Constitution of India. The welfare State took it
seriously and enacted the Unorganised Workers' Social Security Act, 2008. An Act to provide
for the social security and welfare of unorganised workers and for other matters connected
therewith or incidental thereto. The Central Government in exercise of powers conferred by
Section 13 of the said Act, has made the rules namely <Unorganised Workers' Social Security
Rules, 2009". It shows that the Government of India is committed to carry out its provisions to
achieve its sublime aims and objects.

2. Salient Features of the Act

2.1. Statement of Objects and Reasons

It is estimated that the workers in the unorganised sector constitute more than ninety-four per
cent of the total employment in the country. On account of their unorganised nature, these
workers do not get adequate social security. Some welfare schemes are being implemented by
the Central Government for specific groups of unorganised sector workers such as beedi
workers, non-coal mine workers, cine workers, handloom weavers, fishermen, etc. State
Governments are implementing welfare programmes for certain categories of unorganised
sector workers and some Non-Government Organisations also provide social security to certain
categories of workers. Despite all these efforts, there is a huge deficit in the coverage of the
unorganised sector workers in the matter of labour protection and social security measures
ensuring the welfare and well-being of workers in the unorganised sector, such as agricultural
workers, construction workers, beedi workers, handloom workers, leather workers, etc.

The Unorganised Workers' Social Security Act, 2008 aims to provide for social security and
welfare of the unorganised sector workers and for matters connected therewith or incidental
thereto. It consist of VI Chapters, 17 Sections and 2 Schedules.
2.2. Extent and Commencement (Sec. 1)

Section 1 deals with title, extent and date of enforcement of the Act. It extends to the whole of
India and shall come into force on the date notified by the Central Government in the Official
Gazette.
2.3. Definitions (Sec. 2)

Section 2 contains definitions of certain terms used in the Act providing that unless the context
otherwise requires the meaning of these terms shall be attached as contained herein.

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(a) <employer= means a person or an association of persons, who has engaged or

employed an unorganised worker either directly or otherwise for remuneration;

(b) <home-based worker= means a person engaged in the production of goods or

services for an employer in his or her home or other premises of his or her choice
other than the workplace of the employer, for remuneration, irrespective of
whether or not the employer provides the equipment, materials or other inputs;

(c) <identity card= means a card, document or certificate issued to an unorganised

worker by the District Administration under sub-section (3) of Section 10;

(d) <National Board= means the National Social Security Board for unorganised
workers constituted under sub-section (1) of Section 5;

(e) <notification= means a notification published in the Official Gazette;

(f) <organised sector= means an enterprise which is not an unorganised sector;

(g) <prescribed= means prescribed by rules made under this Act by the Central
Government or the State Government, as the case may be;

(h) <registered worker= means an unorganised worker registered under sub-section

(3) of Section 10;

(i) <Schedule= means the Schedule annexed to the Act;

(j) <State Board= means the (name of the State) State Social Security Board for
unorganised workers constituted under sub-section (1) of Section 6;

(k) <self-employed worker= means any person who is not employed by an employer,
but engages himself or herself in any occupation in the unorganised sector
subject to a monthly earning of an amount as may be notified by the Central
Government or the State Government from time to time or holds cultivable land
subject to such ceiling as may be notified by the State Government;

(l) <unorganised sector= means an enterprise owned by individuals or self-

employed workers and engaged in the production or sale of goods or providing
service of any kind whatsoever, and where the enterprise employs workers, the
number of such workers is less than ten;

(m) <unorganised worker= means a home-based worker, self-employed worker or a

wage worker in the unorganised sector and includes a worker in the
organisedsector who is not covered by any of the Acts mentioned in Schedule
II to this Act; and

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(n) <wage worker= means a person employed for remuneration in the unorganised
sector, directly by an employer or through any contractor, irrespective of place
of work, whether exclusively for one employer or for one or more employers,
whether in cash or in kind, whether as a home-based worker, or as a temporary
or casual worker, or as a migrant worker, or workers employed by households
including domestic workers, with a monthly wage of an amount as may be
notified by the Central Government and State Government, as the case may be.

This legislation has been codified for the welfare of the unorganised workers and the bare
reading of the provisions of Section 2 makes it clear that the beneficiaries of this legislation are
home-based workers, self-employed workers and wage workers. These workers may be
generally found in unorganised sector but may also be found in organised sector if they are not
covered by any of the Acts mentioned in Schedule II namely;

i) Workmen's Compensation Act, 1923 (now known as Employees'

Compensation Act, 1923 w.e.f. 18.1.2010);
ii) Industrial Disputes Act, 1947;
iii) The Employees State Insurance Act, 1948;
iv) Employees' Provident Funds and Miscellaneous Provisions Act,
1952;
v) The Maternity Benefit Act, 196; and
vi) The Payment of Gratuity Act, 1972.

The rationale behind this provision is that all those workers who are covered by these Acts have
social security benefits provided therein but if some workers are not covered by these
enactments have no security coverage and were in bare need of social security, therefore, to
meet out this problem the said Act has been brought on the statute book. In other words, the
provisions of this Act shall apply to those workers who are unorganised workers within the
meaning of Section 2 (m) of the Act including those in the organised sector provided they are
not covered by the Acts specified in Schedule II. The workers who are covered by the
Scheduled Acts cannot claim benefits of Unorganised Workers' Social Security Act, 2008.

2.4. Social Security Benefits (Sec. 3 and 4)

➢ S. 3. Framing of Scheme
Section 3 deals with framing of schemes for social security benefits. It makes it obligatory on
the part of the Central Government to formulate and notify from time to time suitable welfare
schemes for unorganised workers on matters relating to-

(a) life and disability cover;

(b) health and maternity benefits;
(c) old age protection; and
(d) any other benefit as deemed fit by the Central Government.

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Sub-section (2) of Section 3 provides that the schemes included in Schedule I shall be deemed
to be the welfare schemes under subsection (1) of Section 3.

The following Schemes are included under Schedule I:

i. Indira Gandhi National Old Age Pension Scheme
ii. National Family Benefit Scheme
iii. Janani Suraksha Yojana
iv. Handloom Weavers' Comprehensive Welfare Scheme
v. Handicraft Artisans' Comprehensive Welfare Scheme
vi. Pension to Master craft persons
vii. National Scheme for Welfare of Fishermen and Training and Extension
viii. Janshree Bima Yojana
ix. Aam Admi Bima Yojana
x. Rashtriya Swasthya Bima Yojana
The Central Government has been empowered under Section 3(3) to amend the Schedules
annexed to this Act by notification in this behalf.
Similarly under sub-section (4) the State Government is under statutory duty to formulate and
notify from time to time, suitable welfare schemes for unorganised workers including schemes
relating to-

a) provident fund;
b) employment injury benefit;
c) housing;
d) educational schemes for children;
e) skill upgradation of workers;
f) funeral assistance; and
g) old age homes.

➢ S. 4. Funding of Central Government Scheme

It is a fact that no welfare scheme can be carried out without sufficient financial assistance.
Section 4 makes specific provisions as to how such schemes may be funded. It provides in its
sub-section (1) that any scheme notified by the Central Government may be (i) wholly funded
by the Central Government; or (ii) partly funded by the Central Government and partly funded
by the State Government or (iii) partly funded by Central Govemment and partly funded by
State Government and partly funded by the contributions collected from the beneficiaries of
the schemes or employers as may be specified in the scheme by the Central Government.

Sub-section (2) of this section lays down that the Central Government is required to provide
for such matters for the efficient implementation of the scheme including the matters relating
to scope of the scheme; beneficiaries of the scheme; resources of the scheme; agency or
agencies for implementation of the scheme; redressal of grievances; and any other relevant
matter deemed fit.

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2.5. National Social Security Board For Unorganised Workers (Sec. 5)

➢ Composition
(1) The Central Government shall, by notification, constitute a National Board to be known as
the National Social Security Board to exercise the powers conferred on, and to perform the
functions assigned to, it under this Act.

(2) The National Board shall consist of the following members, namely:4
a) Union Minister for Labour and Employment-Chairperson, ex officio;
b) the Director General (Labour Welfare)-Member-Secretary, ex officio; and
c) thirty-four members to be nominated by the Central Government, out of whom4
(i) seven representing unorganised sector workers;
(ii) seven representing employers of unorganised sector;
(iii) seven representing eminent persons from civil society;
(iv) two representing members from Lok Sabha and one from Rajya Sabha;
(v) five representing Central Government Ministries and Departments concerned; and
(vi) five representing State Governments.

(3) The Chairperson and other members of the Board shall be from amongst persons of
eminence in the fields of labour welfare, management, finance, law and administration.

(4) The number of persons to be nominated as members from each of the categories specified
in clause (c) of sub-section (2), the term of office and other conditions of service of members,
the procedure to be followed in the discharge of their functions by, and the manner of filling
vacancies among the members of, the National Board shall be such as may be prescribed:
Provided that adequate representation shall be given to persons belonging to the Scheduled
Castes, the Scheduled Tribes, the Minorities and Women.
(5) The term of the National Board shall be three years.

(6) The National Board shall meet at least thrice a year, at such time and place and shall observe
such rules of procedure relating to the transaction of business at its meetings, as may be
prescribed.

(7) The members may receive such allowances as may be prescribed for attending the meetings
of the National Board.
➢ Functions

(8) The National Board shall perform the following functions, namely:4
a) recommend to the Central Government suitable schemes for different sections of
unorganised workers;
b) advise the Central Government on such matters arising out of the administration of this
Act as may be referred to it;
c) monitor such social welfare schemes for unorganised workers as are administered by
the Central Government;
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d) review the progress of registration and issue of identity cards to the unorganised
workers;
e) review the record keeping functions performed at the State level;
f) review the expenditure from the funds under various schemes; and
g) undertake such other functions as are assigned to it by the Central Government from
time to time.

2.6. State Social Security Board For Unorganised Workers (Sec. 6-9)

➢ S. 6. Composition and Functions

• Composition
(1) Every State Government shall, by notification, constitute a State Board to be known as
(name of the State) State Social Security Board to exercise the powers conferred on, and to
perform the functions assigned to it, under this Act.

(2) The State Board shall consist of the following members, namely:4
a) Minister of Labour and Employment of the concerned State4Chairperson, ex officio;
b) the Principal Secretary or Secretary (Labour) 4Member-Secretary, ex officio; and
c) twenty-eight members to be nominated by the State Government, out of whom4
i. seven representing the unorganised workers;
ii. seven representing employers of unorganised workers;
iii. two representing members of Legislative Assembly of the concerned State;
iv. five representing eminent persons from civil society; and
v. seven representing State Government Departments concerned.
(3) The Chairperson and other members of the Board shall be from amongst persons of
eminence in the fields of labour welfare, management, finance, law and administration.

(4) The number of persons to be nominated as members from each of the categories specified
in clause (c) of sub-section (2), the term of office and other conditions of service of members,
the procedure to be followed in the discharge of their functions by, and the manner of filling
vacancies among the members of, the State Board shall be such as may be prescribed:

Provided that adequate representation shall be given to persons belonging to the Scheduled
Castes, the Scheduled Tribes, the Minorities and Women.
(5) The term of the State Board shall be three years.

(6) The State Board shall meet at least once in a quarter at such time and place and shall observe
such rules of procedure relating to the transaction of business at its meetings, as may be
prescribed.

(7) The members may receive such allowances as may be prescribed for attending the meetings
of the State Board.

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• Powers
(8) The State Board shall perform the following functions, namely:4
a) recommend the State Government in formulating suitable schemes for different
sections of the unorganised sector workers;
b) advise the State Government on such matters arising out of the administration of this
Act as may be referred to it;
c) monitor such social welfare schemes for unorganised workers as are administered by
the State Government;
d) review the record keeping functions performed at the District level;
e) review the progress of registration and issue of cards to unorganised sector workers;
f) review the expenditure from the funds under various schemes; and
g) undertake such other functions as are assigned to it by the State Government from time
to time.

➢ S. 7. Funding of State Government Schemes.4

(1) Any scheme notified by the State Government may be4

(i) wholly funded by the State Government; or

(ii) partly funded by the State Government, partly funded through contributions collected from
the beneficiaries of the scheme or the employers as may be prescribed in the scheme by the
State Government.

(2) The State Government may seek financial assistance from the Central Government for the
schemes formulated by it.

(3) The Central Government may provide such financial assistance to the State Governments
for the purpose of schemes for such period and on such terms and conditions as it may deem
fit.
➢ S. 8. Record keeping by District Administration

It is always necessary to keep and maintain proper records for information relating to schemes
formulated by the Government for the welfare of the unorganised workers under the Act so that
improvements can be made on the basis of past experience and also to meet out querries made
under Right to Information Act. Section 8 of the Act makes provision for record keepingby
District Administration. However, the State Government has been authorised to direct that the
record keeping function shall be performed by the District Panchayat in rural areas; and the
Urban Local Bodies in urban areas. It has been deemed necessary to make such a provision
because the welfare schemes aim at to provide social security benefits to the unorganised labour
where so ever and if the scheme is being carried out in the rural areas then the record keeping
will be easy and authentic to be maintained by the District Panchayat concerned.

➢ S. 9. Workers Facilitation Centres

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Generally unorganised labour is illiterate or less educated who may not be aware of the welfare
schemes in operation and also may not be aware of the procedure to avail the benefits thereof,
it is, therefore, necessary to establish centres to facilitate them in all these matters. Section 9
makes a clear-cut provision in this regard. The State Government has been authorised to set up
such Workers Facilitation Centres as and when considered necessary to perform functions
Specified in its clauses (a) to (d) namely:
a) disseminate information on available social security schemes for the unorganised
workers;
b) facilitate the filling, processing and forwarding of application forms for registration of
unorganised workers;
c) assist unorganised worker to obtain registration from the District Administration;
d) facilitate the enrollment of the registered unorganised workers in social security
schemes.
These centres have been entrusted with the very important functions and they are to play key
role in the success of such welfare schemes.
2.7. Eligibility for Registration and Social Security Benefits (Sec. 10)

Section 10 lays down eligibility conditions for registration for social security benefits under
the schemes. Like Child Labour (Prohibition and Regulation) Act, 1986 there is also age
requirement that is, he or she must have completed fourteen years of age and he or she is
required to make a self-declaration that he / she is an unorganised worker. Such eligible
candidate is required to make an application in the prescribed form to the District
Administration for registration. The District administration is under duty to register and issue
an identity card which shall be a smart card carrying a unique identification number and shall
be portable. It has been made clear that he may be asked to pay contribution to avail the benefits
of the scheme in terms of scheme concerned. For financial assistance the Central or the State
Government are required to contribute regularly in terms of the Scheme if the scheme requires
such contribution to be paid by the said Government.

2.8. Miscellaneous (Secs. 11-17)

Sections 11-17 of the Act provides miscellaneous matters.

3. Implementation of the Act

• Evaluation of Working of the Legislation Over a Decade
It has been a decade since the bill passed. It is important to note that the Act neither provides
for regulation of conditions of employment nor any social security schemes; Neither extends
to all unorganised workers nor encompasses agrarian labourers; Neither it makes a categorical
definition of unorganised workers nor binds the government to any commitment; Neither it
provides a mechanism for implementation nor suggests penalty for non-implementation;
Neither it creates a corpus fund nor makes a categorical promise of generating resources.

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Furthermore, it has defined unorganised sector and unorganised workers. The unorganised
workers will also be subjected to the condition of a ceiling on monthly earnings, which isn9t
defined. It could be the ceiling for determining BPL in rural and urban areas or could be the
extent of landholding or could be anything which is unknown and yet to be notified by the
government.

• Social security: a mirage

The act has mentioned that the government would periodically notify the benefits as may be
determined by the central government. It has also mentioned ten schemes. The schemes are not
new and are mostly applicable only for BPL families.

Neither agricultural labourers have been brought under the purview of the act nor a separate
bill for agricultural labourers tabled. Two bills were prepared by the NCEUS. The social
security has been dumped and it confines itself only to social security in its most diluted form.

The Act appears to have excluded vast sections of unorganised workers. This exclusion reveals
the true colours of the <politics of inclusiveness=. The act is applicable only to a small section
of unorganised labourers. The special problem of women unorganised workers do not figure in
the Act. Their problems have been totally neglected.
For the establishment of a central welfare fund, the passage of the act is not accompanied by
any legally stipulated guarantee.
There is no provision for penalties in the act to punish those employers who violates it. Not
only penalty exclusion but also no action against the bureaucrats who refuse to register any
unorganised worker under any of the twin scheduled schemes.

In order to overcome the drawbacks which are evident in the unorganised sectors various
requirements needed to curb such as a situation on the part of legislature and government. The
Act has become a major farce of millennium. It has been taken as a beginning. It is for the
working class and trade union movement to take up the challenge that can cover not only social
security and the conditions of employment.

4. Conclusion
In India, out of an estimated work force of 91 percent all should be having the benefit of formal
Social Security protection including the workers who are in the unorganised sector. Several
and successive attempts have been made in the past to address the multifarious problems faced
by the workers in the unorganised sector through legislative as well as programme oriented
measures. Even though these measures have not succeeded in achieving the desired object
partly on account of the ignorance, illiteracy and lack of unionisation of workers on the one
hand and the resource constraints of the State on the other, some of the programmes have
provided a good setting through which the hopes and expectation of the workers in the
unorganised sector have been considerably aroused.

In the initial years of development planning, it was believed that with the process of
development, more and more workers would join the organized sector and eventually get

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covered by formal Social Security arrangements. However, experience has belied this hope.
The opening up of the economy, under the regime of economic reforms, has only exacerbated
the problem. There is now almost a stagnation of employment in the organized sector with the
resultant increase in the inflow of workers into the informal economy.

The well designed Social Security system for the workers in the unorganised sector will help
in improving productivity, contribute to the harmonious labour relations and thus to socio and
economic development. It will encourage and propagate the social peace by reducing the
frequency of industrial conflicts, increase the willingness to work, make it easier to meet
delivery commitments and lead to improved quality product, a better investment climate and
thereby enhancing the competitiveness of the economy.

Q. No. 5. Explain the deductions which may be made from wages

under the Payment of Wages Act, 1936.

SYNOPSIS

1. Introduction
2. Definition of wages
3. Permissible deductions from wages
4. Conclusion

1. Introduction
Various labour welfare legislations have been enacted to protect the employees9 rights and
prevent them from any injustice done by their employers. The Payment of Wages Act 1936was
enacted to ensure timely payment of wages and to prevent unauthorised deductions thereof by
the employers. The provisions of the Act are applicable to individuals employed in factories,
railways and any other establishments which the Central or State Government may specify in
this regard.
The benefit and protection accorded by the provisions of the Act is available only to employees
whose average monthly wage is less than Rs 24,000.

2. Definition of Wages
The Act defines 8wages9 to mean all remuneration expressed, or capable of being expressed in
terms of money, which would be payable to the employee if the terms of employment are
fulfilled, including:
• any remuneration payable in accordance with any award or settlement between the parties or
an order of a court;
• overtime wages or any other additional remuneration payable under the terms of employment;
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• any sum which is to be paid by the employer, as per any contract or other law, upon termination
of employment of employee; and

• any other sum to which the person employed is entitled under any scheme framed under any
law.
However, wages do not inter alia include bonus, or any contribution paid by an employer to
any pension fund or provident fund.

3. Permissible Deductions from Wages

From wages as defined above, an employer is permitted to make deductions only under the
heads as specified in Section 7 of the Act, and not otherwise. The total amount of any such
deductions in any given wage period cannot exceed 50 percent of the wages. The deductions
allowed under the Act are discussed below:
7(2) of the Payment of Wages Act, 1936 provides that:
<(2) Deductions from the wages of an employed person shall be made only in accordance with
the provisions of this Act, and may be of the following kinds only, namely:
(a) fines;

(b) deductions for absence from duty;

(A) deductions for damage to or loss of goods expressly entrusted to the employed person for
custody, or for loss of money for which he is required to account, where such damage or loss
is directly attributable to his neglect or default;

(d) deductions for house-accommodation supplied by the employer or by Government or any

housing board set up under any law for the time being in force (whether the Government or the
board is the employer or not) or any other authority engaged in the business or Subsidising
house-accommodation which may be specified in this behalf by the State Government by
notification in the Official Gazette;
(e) deductions for such amenities and services supplied by the employer as the State
Government or any officer specified by it in this behalf may, by general or special order,
authorise;
Explanation: The word "services" in this clause does not include the supply of tools and raw
materials required for the purposes of employment;
(f) deductions for recovery of advances of whatever nature (including advances for travelling
allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment
of over-payments of wages;

(ff) deductions for recovery of loans made from any fund constituted for the welfare of labour
in accordance with the rules approved by the State Government, and the interest due in respect
thereof;

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(fff) deductions for recovery of loans granted for house-building or other purposes approved
by the State Government, and the interest due in respect thereof;

(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a Court or other authority competent to make
such order;
(i) deductions for subscriptions to, and for repayment of advances from any provident fund to
which the Provident Funds Act, 1925 (19 of 1925), applies or any recognized provident fund
as defined in clause (38) of Section 2 of the Income-tax Act, 1961 (43 of 1961) or any provident
fund approved in this behalf by the appropriate Government, during the continuance of such
approval;
(j) deductions for payments to co-operative societies as approved by the appropriate
Government or any officer specified by it in this behalf or to a scheme of insurance maintained
by the Indian Post Office;
(k) deductions, made with the written authorisation of the person employed for payment of any
premium on his life insurance policy to the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities
of the Government of India or of any appropriate Government or for being deposited in any
Post Office Savings Bank in furtherance of any savings scheme of any such Government;

(kk) deductions made, with the written authorisation of the employed person, for the payment
of his contribution to any fund constituted by the employer or 8a trade union registered under
the Trade Unions Act, 1926 (16 of 1926), for the welfare of the employed persons or the
members of their families, or both, and approved by the appropriate Government or any officer
specified by it in this behalf, during the continuance of such approval.
(kkk)deductions made, with the written authorisation of the employed person, for payment of
the fees payable by him for the membership of any trade union registered under the Trade
Unions Act, 1926 (16 of 1926);

(l) deductions, for payment of insurance premia on Fidelity Guarantee Bonds;

(m) deductions for recovery of losses sustained by a railway administration on account of

acceptance by the employed person of counterfeit or base coins or mutilated or forged currency
notes;
(n) deductions for recovery of losses sustained by a railway administration on account of the
failure of the employed person to invoice, to bill, to collect or to account for the appropriate
charges due to that administration, Whether in respect of fares, freight, demurrage, wharfage
and cranage or in respect of sale of food in catering establishments or in respect of sale of
commodities in grain shops or otherwise;

(o) deductions for recovery of losses sustained by a railway administration on account of any
rebates or refunds incorrectly granted by the employed person where such loss is directly
attributable to his neglect or default;

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(p) deductions, made with the written authorisation of the employed person, for contribution to
the Prime Minister's National Relief Fund or to such other Fund as the Central Government
may, by notification in the Official Gazette, specify;

(q) deductions for contributions to any insurance scheme framed by the Central Government
for the benefit of its employees.=

4. Conclusion

Section 7 of the Payment of Wages Act, 1936 is one of the most important provisions of the
Act which protects the employees from any unauthorised deductions and provides an effective
mechanism for the employees to claim against such deductions.

The competent authority appointed by the appropriate government under the Act, has powers
to award compensation up to 10 times of the amount deducted, in addition to directing the
refund of the amount deducted. Therefore, employers must exercise caution before making any
kind of deductions from the employees9 wages and ensure that the deductions are within the
prescribed limits of the Act.

Q. No. 6. Discuss the provisions pertaining to regulation of

conditions of work of children under the Child Labour (Prohibition
and Regulation) Act, 1986.

SYNOPSIS

1. Introduction
2. Objective of the Act
3. Regulation of conditions of work of children
4. Conclusion

1. Introduction
The children are delicate and precious flowers of life. It is undisputed that they are the potential
embodiment of our ideals, aspirations, ambitions, dreams and hopes. One may sincerely
visualize in their innocent. personalities the great scientists, philosophers, committed rulers,
devoted policy makers, utilitarian legislators, efficient administrators, worthy engineer,
enlightened industrialists, patriotic and dedicated soldiers and best citizens always to serve
nation and apostle of International peace and security of 21st century. The child, for the full
and the harmonious development of his or her personality should grow up in a very congenial
family environment, in an atmosphere of happiness, love and understanding. In fact, child by
virtue of his physical and mental immaturity needs special safeguards and care including
appropriate legal protection, before and after birth.

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The Child Labour (Prohibition and Regulation) Act, 1986 is one the most debated acts
regarding children in India. It outlines where and how children can work and where they can
not.

2. Objective of the Act

The object of the Act is to prohibit the engagement of children in certain employments and to
regulate the conditions of work of children in certain employments.
As per section 2(ii) <child= means a person who has not completed his fourteenth year of age.

3. Regulation of conditions of work of children

Part III of the act outlines the conditions in which children may work in occupations/processes
not listed in the schedule.

➢ Section 6. Application of Part.-

The provisions of this Part shall apply to an establishment or a class of establishments in which
none of the occupations or processes referred to in section 3 is carried on.

COMMENTS

This section regulates the working conditions of the children in employment where they are
not prohibited from working by section 3 of this Act.

➢ Section 7. Hours and period of work.-

(1) No child shall be required or permitted to work in any establishment in excess of such
number of hours as may be prescribed for such establishment or class of establishments.
(2) The period of work on each day shall be so fixed that no period shall exceed three hours
and that no child shall work for more than three hours before he has had an interval for rest for
at least one hour.
(3) The period of work of a child shall be so arranged that inclusive of his interval for rest,
under sub-section (2), it shall not be spread over more than six hours, including the time spent
in waiting for work on any day.
(4) No child shall be permitted or required to work between 7 p.m. and 8 a.m.
(5) No child shall be required or permitted to work overtime.
(6) No child shall be required or permitted to work in any establishment on any day on which
he has already been working in another establishment.

COMMENTS
This section stipulates that no child shall work for more than 3 hours before he has had an
interval for rest for at least one hour. The double employment of a child is banned.

➢ Section 8. Weekly holidays.-

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Every child employed in an establishment shall be all each week, a holiday of one whole day,
which day shall be specified by the occupier in a notice permanently exhibited in a conspicuous
place in the establishment and so specified shall not be altered by the occupier more than once
in three months

COMMENTS
The child employed in an establishment is entitled for a holiday of one whole day in each week.

➢ Section 9. Notice to Inspector.-

(1) Every occupier in relation to an establishment in which a child was employed or permitted
to work immediately before the date of commencement of this Act in relation to such
establishment shall, within a period of thirty days from such commencement, send to the
Inspector within whose local limits the establishment is situated, a written notice containing
the following particulars, namely:-
(a) the name and situation of the establishment;
(b) the name of the person in actual management of the establishment;
(c) the address to which communications relating to the establishment should be sent; and
(d) the nature of the occupation or process carried on in the establishment.
(2) Every occupier, in relation to an establishment, who employs, or permits to work, any child
after the date of commencement of this Act in relation to such establishment, shall, within a
period of thirty days from the date of such employment, send to the Inspector within whose
local limits the establishment is situated, a written notice containing the particulars as are
mentioned in sub-section (1).
Explanation.- For the purposes of sub-sections (1) and (2), "date of commencement of this Act,
in relation to an establishment" means the date of bringing into force of this Act in relation to
such establishment.
(3) Nothing in sections 7, 8 and 9 shall apply to any establishment wherein any process is
carried on by the occupier with the aid of his family or to any school established by, or receiving
assistance or recognition from, Government.

➢ Section 10. Disputes as to age.-

If any question arises between an Inspector and an occupier as to the age of any child who is
employed or is permitted to work by him in an establishment, the question shall, in the absence
of a certificate as to the age of such child granted by the prescribed medical authority, be
referred by the Inspector for decision to the prescribed medical authority.

➢ Section 11. Maintenance of register.-

There shall be maintained by every occupier in respect of children employed or permitted to

work in any establishment, a register to be available for inspection by an Inspector at all times
during working hours or when work is being carried on in any such establishment, showing-
(a) the name and date of birth of every child so employed or permitted to work;
(b) hours and periods of work of any such child and the intervals of rest to which he is entitled;

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(c) the nature of. work of any such child; and

(d) such other particulars as may be prescribed.

➢ Section 12. Display of notice containing abstract of sections 3 and 14.-

Every railway administration, every port authority and every occupier shall cause to be
displayed in a conspicuous and accessible place at every station on its railway or within the
limits of a port or at the place of work, as the case may be, a notice in the local language and
in the English language containing an abstract of sections 3 and 14.

➢ Section 13. Health and safety.-

(1) The appropriate Government may, by notification in the Official Gazette, make rules for
the health and safety of the children employed or permitted to work in any establishment or
class of establishments.

(2) Without prejudice to the generality of the foregoing provisions, the said rules may provide
for all or any of the following matters, namely:-
(a) cleanliness in the place of work and its freedom from nuisance
(b) disposal of wastes and effluents
(c) ventilation and temperature
(d) dust and fume
(e) artificial humidification
(f) lighting
(g) drinking water
(h) latrine and urinals
(i) spittoons
(j) fencing of machinery
(k) work at or near machinery in motion
(l) employment of children on dangerous machines
(m) instructions, training and supervision in relation to employment of children on dangerous
machines
(n) device for cutting off power
(0) self-acting machines
(P) easing of new machinery
(q) floor, stairs and means of access
(r) pits, sumps, openings in floors, etc.
(s) excessive weights
(t) protection Of, eyes
(u) explosive or inflammable dust, gas, etc.
(v) precautions in case of fire
(w) maintenance of buildings and
(x) safety of buildings and machinery.

COMMENTS

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The appropriate Government is empowered to make rules in such matters as cleanliness,

disposal of wastes, dust, lighting, precaution against fire, protection of eyes, spittoons and
ventilation, etc., in any establishment for the health and safety of the children employed or
permitted to work.

4. Conclusion

Part III of the act outlines the conditions in which children may work in occupations/processes
not listed in the schedule. The number of hours of a particular kind of establishment of class of
establishments is to be set and no child can work for more than those many hours in that
particular establishment. Children are not permitted to work for more than three hour stretches
and must receive an hour break after the three hours. Children are not permitted to work for
more than six hour stretches including their break interval and can not work between the hours
of 7 p.m. and 8 a.m. No child is allowed to work overtime or work in more than one place in a
given day. A child must receive a holiday from work every week. The employer of the child is
required to send a notification to an inspector about a child working in their establishment and
keep a register of all children being employed for inspection.

If there is a dispute as to the age of the child, the inspector can submit the child for a medical
exam to determine his/her age when a birth certificate is not available. Notices about
prohibition of certain child labour and penalties should be posted in every railway station, port
authority and workshop/establishment.

The health conditions of work being undertaken by children shall be set for each particular kind
of establishment of class of establishments by the appropriate government. The rules may cover
topics such as cleanliness, light, disposal of waste and effluents, drinking water, bathrooms,
protection of eyes, maintenance and safety of buildings, etc.

Q. No. 7. Explain the salient features of the Karnataka Shops and

Commercial Establishments Act, 1961.

SYNOPSIS

1. Introduction
2. Scheme of the Act
3. Salient features of the Act
4. Conclusion

1. Introduction
The Karnataka Shops and Establishment Act regulates the operations of shops and commercial
establishments. The Karnataka Shops and Establishment Act was introduced to regulate the

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hours of work, annual leave with wages, wages and compensation, employment of women and
children and other aspects of a shops or commercial establishment.

2. Scheme of the Act

The Act consist of IX Chapters, 44 Sections and a Schedule. Chapter I (Secs. 1-3) deals with
Preliminary- Extent, commencement, application, definitions and exemptions from
applicability of the Act. Chapter II (Secs. 4-6A) deals with Registration of Establishment.
Chapter III (Secs. 7-13) deals with Hours of work. Chapter IV (Secs. 14-20) deals with Annual
leave with wages. Chapter V (Secs. 21-23; Sec. 23 Repealed) deals with Wages and
compensation. Chapter VI (Secs. 24 and 25) deals with Employment of children and women.
Chapter VII (Secs. 26-29) deals with Enforcement and inspection. Chapter VIII (Secs. 30-33)
deals with Offences, penalties and procedure. Chapter IX (Secs. 34-44) deals with
Miscellaneous.

3. Salient Features of the Act

3.1. Objectives

The Preamble of the Act states, this as an Act to provide for the regulation of conditions of
work and employment in shops and commercial establishments. WHEREAS it is expedient to
provide for the regulation of conditions of work and employment in shops and commercial
establishments and other incidental matters;

3.2. Commencement and Application (Secs. 1 and 2)

• This act has been enforced from 01-03-1962 in Karnataka state and time to time
amendments are made.
• This Act applies to the areas specified in the Schedule and to the areas as notified by
the Karnataka Government.

3.3. Important Definitions (Sec. 2)

• S. 2(e) commercial establishment
<commercial establishment= means a commercial or trading or banking or insurance
establishment, an establishment or administrative service in which persons employed are
mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any
other refreshment house, a theatre or any other place of public amusement or entertainment
and includes such establishments as the State Government may by notification declared to be
a commercial establishment for the purposes of this Act;=

• S. 2(g) employee
<employee= means a person wholly or principally employed in or in connection with, any
establishment whether working on permanent, periodical, contract or piece-rate wages, or on
commission basis, even though he receives no reward for his labour and includes an apprentice,
any clerical or other member of the staff of a factory or industrial establishment who falls

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outside the scope of the Factories Act, 1948, but does not include a member of the employer’s
family; and <employed= shall be construed accordingly;

• S. 2(h) employer
<employer= means a person having charge of or owning or having ultimate control over the
affairs of an establishment and includes members of the family of an employer, a manager,
agent or other person acting in the general management or control of an establishment;

• S. 2(i) establishment
<establishment= means a shop or a commercial establishment;

• S. 2(u) shop
<shop= means any premises where any trade or business is carried on or where services are
rendered to customers, and includes offices, storerooms, godowns, or warehouses, whether in
the same premises or otherwise, used in connection with such trade or business, but does not
include a commercial establishment or a shop attached to a factory where the persons
employed in the shop fall within the scope of the Factories Act, 1948.

3.4. Exemptions from Applicability (Sec. 3)

Establishments Exempted from Karnataka Shops and Establishment Act
• The Act does not apply for the following types of establishments (total exclusion)

(a) Offices of or under the Central or State Governments or Local Authorities, except
commercial undertakings;
(b) Any railway service, water transport service, postal, telegraph or telephone service, any
system of public conservancy or sanitation or any industry, business or undertaking
which supplies power, light or water to the public;
(c) Railway dining cars;
(d) Establishments for the treatment or care of the sick, infirm, or the mentally unfit;
(dd) Establishments of the Food Corporate of India;
(e) Offices of legal practitioners and medical practitioners in which not more than three
persons are employed;
(f) Offices of a banking company;
(g) Any person employed in any business from point 1 3 7 above;
(h) Persons occupying positions of management in any establishment;
(i) Persons whose work is inherently intermittent such as drivers, care-takers, watch and
ward staff, or canvassers;
(j) Persons directly engaged in preparatory or complementary work, such as, clearing and
forwarding clerks responsible for the despatch of goods.

• Further, Provisions relating to opening and closing hours (S. 11) and weekly
holidays (Subsection (1) of S. 12) in the Karnataka Shops and Establishment Act
does not apply to:

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(a) Shops dealing mainly in medicines or medical or surgical requisites or appliances;

(b) Clubs, residential hotels, boarding houses, hostels attached to schools or colleges, and
establishments maintained in boarding schools in connection with the boarding and
lodging of pupils and resident-masters;
(c) Stalls and refreshment rooms at railway stations, bus stands, ports or aerodromes;
(d) Shops of barbers and hairdressers;
(e) Shops dealing mainly in meat, fish, poultry, eggs, dairy produce, bread, confectionery,
sweets, chocolates, ice, ice-cream, cooked food, fruits, flowers, vegetables or green
fodder;
(f) Shops dealing in articles required for funerals, burials or cremations;
(g) Shops dealing in pan, pan with beedies or cigarettes, or liquid refreshments sold retail
for consumption on the premises;
(h) Shops dealing in newspapers or periodicals, editing sections of newspaper offices and
offices of news agencies;
(i) Cinemas, theaters and other places of public entertainment and stalls and refreshment
rooms attached to such cinemas, theaters and places of public entertainment;
(j) Establishments for the retail sale of petrol;
(k) Shops in regimental institutes, garrison shops and troop canteens in cantonments;
(l) Tanneries;
(m) Retail trade carried on at an exhibition or show, if such retail trade is subsidiary or
ancillary only to the main purpose of the exhibition or show;
(n) Oil-mills and flour-mils not registered under the Factories Act, 1948;
(o) Brick and lime kilns;
(p) Commercial establishments engaged in the manufacture of bronze and brass utensils so
far as it is confined to the process of melting in furnaces;
(q) Information technology establishments;
(r) Bio-technology and research centers or establishments of epidemic and other diseases;

3.5. Registration of Establishments (Secs. 4-6A)

Under the Act registration is mandatory for all shops and commercial establishments in
Karnataka, expect those exempted.
New shops or commercial establishments in Bangalore or Karnataka are required to apply for
Karnataka Shops and Establishment Act Registration within 30 days of commencing
operations. The Shops and Establishment Act Registration must be submitted in the prescribed
format to the Labour Inspector of the area concerned. The following information must be
provided as a part of the Shop and Establishment Act Registration application:
• The name of the employer and manager, if any
• The postal address of the establishment;
• The name, if any, of the establishment; and
• Such other particulars as may be prescribed.

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On submission of the application, the Inspect would verify and provide the Registration
Certificate. Registration certificate must be displayed on visible place inside the office premises.
Registration certificate is valid for 859 years period. Before the expiry of the period, renewal
application to be submitted for the next period.

It shall be the duty of an employer to notify to the registration authority, in the prescribed form,
any change with respect to any information contained in his statement during
registration/renewal within 15 days after the change. Ex. Change in address, change in
ownership, change in number of employee etc.

Every employer, employing any person in or in connection with his establishment, shall issue
an appointment order in writing indicating the name, designation, wage scale of such person
and terms and conditions of his employment and serve the same on such person within thirty
days from the date of appointment in his establishment.

After closing the business of his establishment, should surrender the registration certificate to
the registration authority.

3.6. Hours of Work (Secs. 7-13)

3.6.1. Daily and weekly hours and extra wages for overtime work

As per the Act, employees can only work for nine hours on any day and forty-eight hours in
any week. If the employee works more hours, then wages need to be provided for overtime.
Further, the period of work of an employee in an establishment should be fixed so that, no
period or work exceeds five hours without an interval.
3.6.2. working hours (Opening and closing hours)

Any establishment shall not run its business before and after following hours.
➢ In Bangalore city; Morning before 6 am and Night after 9 pm.
➢ Other places; Morning before 8 am and Night after 8 pm.
3.6.3. Weekly holiday
Every establishment shall remain closed for one day of the week. The employer shall fix such
day in the beginning of the year and notify it to the registration authority and specify it in a
notice prominently displayed in a conspicuous place inside the establishment. Instruction: Any
employer is taking exemption from weekly holiday, shall fix different days as holiday for his
establishment and shall obtain the weekly holiday break by submitting the report to the deputy
labour commissioner.

3.6.4. Selling outside establishments prohibited after closing hours

Save as provided by or under any other enactment for the time being in force, no person shall
carry on, in or adjacent to a street or public place, the sale of any goods after the hour fixed

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under section 11 for the closing of establishments dealing in the same class of goods in the
locality in which such street or public place is situated:

Provided that nothing in this section shall apply to the sale of news papers and such other
articles as may be exempted by notification by the State Government.

3.7. Annual Leave with Wages (Secs. 14-20)

Employees working in an establishment in Karnataka should be allowed to avail a leave with
wages at the rate of one day for every twenty days of work performed. In case, of young persons,
the employee should be allowed to avail a leave with wages at the rate of one day for every
fifteen day of work performed.

3.8. Wages and Compensation (Secs. 21 and 22)

With respect to wages and compensation certain existing labour laws are made applicable,
which are as follows;

(a) Payment of Wages Act, 1936;

(b) Minimum Wages Act, 1948;
(c) Payment of Gratuity Act, 1970(Only when there is more than10 employees);
(d) Payment of Bonus Act of 1965(Only when there is more than 10 employees);
(e) The Employees Compensation Act, 1923; and
(f) Industrial Dispute Act, 1947.
• Minimum Wages
Minimum wages to the labours working in shops and commercial establishment has been fixed
by the Karnataka state Government; first time in the year [Link] to time revision is done.
Presently 2003 revised notification is in force.

3.9. Employment of Child, Young Persons and Women (Secs. 24 and

25)
The Act prohibits the employment of child at any establishment. A child is any person who has
not completed fourteen years of age.
Also, young person and woman cannot be required or allowed to work whether as an employee
or otherwise in any establishment during night. A young person is anyone who has completed
the age of fourteen, but not eighteen.

However IT/BT organizations can get permission to allow women to work after 8 pm by
submitting Form 8R9 with necessary information.

3.10. Enforcement and Inspection

To enforce this act, the Labour Commissioner will be the Chief Inspector. It is notified that
Inspector/Senior Inspector will be Inspector and all department-level authorities will be
Additional Inspector.

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Power Devolution:
Responsibilities are delegated among the department administration hierarchy.

a) Labour/Senior Labor Inspector: Authority for registration/Renewal of establishment.

b) Assistant Labour Commissioner: Appealing Authority to enquire the employee
dismissal case.
c) Deputy Labour Commissioner: Authority for Weekly holiday exemption, Woman
working hour exemption.

3.11. Duties of Employer

❖ Employment and Regulation:

• Every employer, employing any person in or in connection with his establishment shall
issue an appointment order in form 8P9.
• Every day, employee attendance shall be registered in form 8T.
• The organizations having weekly holiday exemption, after taking continuous service of
6 days from any employee, shall give 7thday as mandatory holiday for him. In special
cases 7th day can not be given as holiday, 11th day should be given as mandatory holiday.
• After each month salary shall be paid before 7th date of next month.
• Working period of any employee should not exceed 48 hours and 58 hours including
extra working hours.
• End of the year, counting the working day of the employees for present year; 1 day per
20 days as earned leave and 1 day per 30 days as sick leave shall be calculated. This
leave account shall be recorded in the format 8F9.
• Any employee who has completed 180 days service to the establishment can not be
dismissed without prior notice.

❖ Records management:

• Use format 'A'; for Establishment registration/Renewal/To report change of information.

• Use format 'P'; to fix the different day as the weekly holiday.
• Use format 'F'; to maintain leave records and Use format 8H9; to give the copy to the
employee.
• Use format 'T'; to maintain daily attendance of employee.
• Use format 'R'; to get permission to allow women to work after 8 pm.
❖ Submission of annual report:

Annual report ending with 31st December shall be submitted before 31st January of next year
in the format 'U'.

3.12. Employees’ Rights

• Every employee have rights to take weekly one day as compulsory holiday.

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• Where an employee works in any establishment for extra hours in any day or any week,
he shall in respect of such overtime work to be entitled to wages at twice the rate of
normal wages.
• Every employee shall be entitled to preserve earned leave for 40 days.
• Every employee shall be entitled to encash unavailed earned leaves.
• An employee, removed or dismissed shall have a right of appeal to jurisdiction officer
on the ground that there was no reasonable cause for the removal or dismissal.
• Where an employee has been removed or dismissed without reasonable cause or
without proof of misconduct is proved, the employee shall be entitled to get
compensation as one month9s pay for every year of service.

3.13. Penalties

Certain penalties have been prescribed for the contravention of provisions of the Act. All of
them are in terms of fine except employment of children for which imprisonment for three
months may be awarded and in case the offence is repeated same may be increased up to one
year.

4. Conclusion

This is an act to provide for the regulation of conditions of work and employment in shops and
commercial establishments in the state of Karnataka. The accurate name for this legislation
is The Karnataka Shops and Commercial Establishments Acts, 1961 and Rules, 1963. This act
covers shops and commercial establishments (offices, storerooms, godowns, or warehouses).
The act is applicable even if you have one employee or none. In spite of this Act,the workers are
subject to severe exploitation by the rest of the society. They work under poor working
conditions, get wage much below than in the formal sector and even for closely comparable
jobs where labour productivity is not different. The work status is of inferior quality in terms
of both remuneration and employment. Hence there is a need for effective implementation of
the Act.

Q. No. 8. Write a short note on any two of the following:

a) Social insurance and Social assistance

The term 8social security9 is all embracing. The scope of social security is, therefore, very wide.
It covers the aspects relating to social and economic justice. The social security benefits are
provided in three major ways such as social assistance, social insurance and allied services.
The most well known techniques adopted by social security at present are no doubt social
assistance and social insurance which are discussed as follows:

➢ Social Insurance

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The ILO defines social insurance as <a scheme that provides benefits for persons of small
earnings granted as of right in amounts which combine the contribution of the insured with
subsidies from the employer and the State.=

The social insurance protects persons of small earnings. The purpose of social insurance is to
render the wage earner as independent of poor relief as possible on the principle that his wage
should include an insurance premium covering the risk of its involuntary loss, the inability of
the State being merely subsidiary. Thus social insurance historically provided protection to
industrial worker in the first instance. Almost all pension and unemployment insurance
schemes are tripartite in character, that is, they are maintained by the contributions from the
employees, employers and the State. However, there are exceptions. For example, the
American Unemployment Schemes are financed by the employers only, the Netherlands and
Spanish pension schemes are financed by the employers and the State and the Greek Pension
Scheme and the Italian Unemployment Scheme are financed jointly by workers and the
employers. The employer contributes in every case, probably because he is the owner of the
industry and most benefited party. In order that the benefits provided by social insurance may
be closely adapted to the variety of needs, the contingencies covered should be classified as
sickness, maternity, invalidity, old age, death of bread winner, unemployment, emergency
expenses and employment injuries.

Social insurance is social because it involves the collective effort of beneficiaries, their
employers, if any, and the State. It is insurance because the beneficiary has to pay contribution
before he is entitled to secure benefits. Thus the benefits are not paid gratis, they are
systematically financed, since the scheme is subsidised, a device is evolved to exclude the cases
which do not deserve any subsidy from the State. However, almost all schemes of social
insurance set a limit of income beyond which protection is not available. Moreover, benefits
arise as of right. The beneficiary claims the benefit, he does not apply for it. in addition to this,
social insurance is a compulsory measure. The persons who fall under the purview of the
insured population cannot refuse to get insured. It has been made compulsory becauseotherwise
really poor will be least willing to pay contributions.
To sum up, it may be observed that social insurance is compulsory in nature based on
contributory principle to provide protection in specified contingencies on fulfilling specified
qualifying conditions laid down under the provisions of social welfare legislation.

The following legislative measures adopted by the Government of India by way of social
security schemes for industrial workers falls under the category of Social Insurance.

• Employees9 Compensation Act, 1923;

• Employees9 State Insurance Act, 1948;
• The Employees' Provident Funds and Miscellaneous Provisions Act, 1952;
• Payment of Gratuity Act, 1972 etc.
Social insurance schemes are different from private insurance schemes. The private insurance
schemes are optional and one policy covers only one risk generally and they are entirely
voluntary. Private insurance exists for those who feel the need for protection of life or properly

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against certain contingencies sufficiently to join voluntarily, with others, exposed to a similar
risks, in maintaining a fund from which will be paid for the risks that occur within the group.

Like in India the Life Insurance Corporation of India and National Insurance Co. Ltd., do not
come under social insurance as they are open to all with sole object of economic profit for the
insured persons and their legal heirs though they are run under State statutes.
➢ Social Assistance

The ILO defines social assistance scheme as <one that provides benefits to persons of small
means granted as of right in amounts sufficient to meet a minimum standard of need and
financed from taxation.= Thus it is a scheme of institutional charity. However it differs from
charity in so far as charity is voluntary, it has no legal basis while social assistance has a legal
basis. It is organised under the provisions of a statute. The benefits arise as of right. Charity is
unexpected and irregular while social assistance benefits are paid at specified intervals and they
continue as long as the need remains. Thus social assistance removes the social and moral
stigma so painfully associated with doles paid under the English Poor Law or the aims offered
by God-fearing individuals for religious considerations.
In general terms social assistance refers to providing of basic security irrespective of
participation in specific insurance programs where eligibility may otherwise be an issue. For
instance, assistance given to newly arrived refugees for basic necessities suchas
food, clothing, housing, education, money, and medical care.

The special characteristic of this measure is that it is financed wholly from the general revenues
of the state and the benefits are provided free of cost. But the beneficiary has to satisfy means
test which means certain prescribed conditions. The first risk to be covered was that old age,
but gradually non-contributory benefits were also introduced for invalids, survivors and
unemployed persons as well. Today social assistance programmes cover programme like
unemployment assistance, old age assistance, national assistance

Social assistance is a device organised by the State by providing cash assistance and medical
relief, to such members of the society as cannot get them from their own resources. The social
assistance underlines the idea that the care of the poor could not be left to voluntary charity and
should be placed on a compulsory and statutory basis. The State had to intervene because
individualised charity proved to be inadequate and the floating mass of paupers and destitute
constituted a threat to society.

Following are some of the national social assistance schemes implemented in India:
• Old Age Pension (OAP) / Widow Pension (WP);
• Indira Gandhi National Disability Pension Scheme;
• Annapurna Antyodaya Yojana etc.

Similarities and Differences between Social Assistance and Social Insurance

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Social assistance and social insurance have some similar features because both are social in
approach and are organised under a law passed in this behalf. Both provide a legal title to
benefits. But both differ from each other in some respects. First, social assistance is financed
by the general tax payers, while social insurance is financed by tripartite or bipartite
contributions. Secondly, social assistance aims at to provide minimum subsistence to those
who cannot make it on their own. Hence, the beneficiary has to satisfy a means test for being
entitled to such benefits while social insurance schemes aim to protect a minimum standard of
living related to beneficiaries9 immediate standard of living as reckoned by his daily earning.
Thirdly, social insurance ignores the income and means of liable relations while social
assistance makes the beneficiary a first charge on the liable relation. Benefits are paid only
when the specified relations do not possess sufficient means to support the beneficiary. Thus
social assistance is a progression from private charity towards private insurance whereas social
insurance is a progression from private insurance towards public welfare measures.

b) Payment of minimum and maximum bonus

• Payment of Minimum Bonus

Section 10 of the Payment of Bonus Act, 1965 stipulates that, subject to the other provisions
of this Act, every employer shall be bound to pay to every employee in respect of every
accounting year, a minimum bonus which shall be 8.33% of the salary or wage earned by the
employee during the accounting year or Rs.100 (Rs.60 in case of employee below the age of
15 years), whichever is higher, whether or not the employer has any allocable surplus in the
accounting year.

Even if the employer suffers losses during the accounting year he is bound to pay minimum
bonus as prescribed by Section 10. This Act creates a statutory right in the employees to get
minimum bonus and also creates a statutory liability upon the employers covered by the Act to
pay minimum bonus.

• Payment of Maximum Bonus

Section 11 provides, where, in respect of any accounting year referred to in Section 10, the
allocable surplus exceeds the amount of minimum bonus payable to the employees under that
section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee
in respect of that accounting year, bonus which shall be an amount in proportion to the salary
or wage earned by the employee during the accounting year subject to a maximum of 20% of
such salary or wage.

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In computing the allocable surplus under the above-mentioned provision, the amount set on or
the amount set off under the provisions of Section 15 shall be taken into account in accordance
with the provision of that section.

• Calculation of Bonus with respect to certain Employees

According to section 12, where the salary or wage of an employee exceeds ten thousand rupees
or the minimum wage for the scheduled employment, as fixed by the appropriate Government,
whichever is higher per mensem, the bonus payable to such employee under section 10 or, as
the case may be, under section 11, shall be calculated as if his salary or wages were ten thousand
rupees or the minimum wage for the scheduled employment, as fixed by the appropriate
Government, whichever is higher per mensem.

For the purposes of this section, the expression <scheduled employment= shall have the same
meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948.

c) Impact of globalisation on industry and labour

➢ Concept of Globalisation
Globalisation essentially means integration of the national economy with the world economy.
It implies a free flow of information, ideas, technology, goods and services, capital and even
people across different countries and societies. It increases connectivity between different
markets in the form of trade, investments and cultural exchanges.

➢ Effects of Globalisation on Industry and Labour

After Independence in 1947 Indian government faced a significant problem to develop the
economy and to solve the issues. Considering the difficulties pertaining at that time government
decided to follow LPG Model. The Growth Economics conditions of India at that time were
not very good. This was because it did not have proper resources for the development, not
regarding natural resources but financial and industrial development. At that time India needed
the path of economic planning and for that used 8Five Year Plan9 concept of which was taken
from Russia and feet that it will provide a fast development like that of Russia, under the view
of the socialistic pattern society. India had practiced some restrictions ever since the
introduction of the first industrial policy resolution in 1948.

Soon after independence, the period was known as License Raj. As a result of the restriction in
the past, India9s performance in the global market has been very dismal; it never reached even
the 1% in the worldwide market. India has vast natural resources with high-efficiency labor,
but after all this, it was still contributing with 0.53% till 1992.

The Government of India announced a New Economic Policy on July 24, [Link]
liberalization, India became the second world of development and became the 7th largest

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economies. It contributed 1.3 trillion in the world9s GDP. Dr. Manmohan Singh, the former
finance minister, opened the way for a free economy in the country which led to the significant
development of the country.

It is pertinent to note that the adoption of open economy affected the country positively and as
well negatively. On the one hand, it witnessed high economic development, infrastructure
development, and urbanization and on the other hand had a widening cleft between the rich and
poor and class divide continues to plague the country. Social and human development remains
absurdly low leading to a profoundly fragmented nation.

The noteworthy impacts of the policy on industry and labour are as follows:

• Organized workforce
Organized workforce is decreasing. Number of operations given to sub-contractors have
increased and that also in the unorganised sector.

• Trade unions
Trade unions are on a decline. Thus is a world wide phenomenon. It is generally agreed that
the trade unions movement has fallen on hard tunes. The extent of its difficulties may
sometimes, of-course, be exaggerated by overemphasising adverse national situation.
Nonetheless, workers' organizations are losing members. Some even have doubts about their
future.

• Wages and employment

The increase in international competition and rapid changes in the technology has led to a fall
in real wages of unskilled workers and increased inequalities in the developed countries. Worst
employment crisis is being faced by the world after 1930s. About one-third of the earth's 2.8
billion workers are either jobless or underemployed and many of those employed receive low
wages and the working condition is poor. New labour saving technologies have increased the
woes of the workers. The process has gained momentum due to global competition and
financial squeeze on governments. Growing income inequality, job insecurity and
unemployment have resulted due to globalisation.

Except in few countries, real wages fell, and the labour market conditions started to deteriorate.
Although open employment fell in my instances job tended to become more precarious and the
urban informal sector proliferated. Living condition in general worsened. Globalisation has
compelled the developing countries also to carry out structural adjustments programmes. These
program are having an adverse impact on their workers. Due to closure of uneconomic units,
shrinkage in public sector employment, reduction in expenditure in different activities of
governments many workers in developing countries have lost their jobs. Competition has
forced restructuring of many units. This involves labour restructuring leading to loss of jobs
and increased unemployment in different forms. The most vulnerable section of the society-
the poor, women, children and the old suffer the most.

• Indian Scenario

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Globalisation has also affected the Indian industry. In order to remain competitive,
managements have introduced flexibility by restructuring companies. not employing
permanent category employees, closing down units, departments, transferring jobs from
bargainable to non-bargainable categories, introducing functional flexibility, putting pressure
to increase productivity, opening parallel plants, employing contract workers and
subcontracting out production. In order to keep the company small the trend is to outsource
work as far as possible Units are being relocated in interior places reducing the power of the
unions. VRS is being resorted to. Trade unions have been forced to give up or curb gain and
accept Job loss due to threat or industrial closure. Norms relating to work load have gone up.
Thus globalisation and liberalisation have created an enabling environment for cutting down
regular, salaried jobs in organised sector through VRS, contractual employment, sub-
contracting, outsourcing, feminisation, etc. and weakening trade unions. Links between the
trade unions and political party is weakening which is reducing their economic strength and
political influence.

➢ Conclusion
In order to remain competitive in the present phase of globalisation it has become imperative
to restructure the economies. The capacity of governments to regulate labour markets is
weakening in the face of heightened international economic competition. Informal sector is on
rise. Trade unions have been adversely affected. Bargaining position of workers is decreasing.
What is required is a holistic and long-term framework to cope with the challenges posed by
globalisauon.

Q. No. 9. Solve any two of the following problems:

a) The Government of India as an employer employed some employees for the
purpose of construction works. The minimum wages were denied to the employees.
A public interest litigation was filed alleging that denial of minimum wages
amounts to <forced labour= within the ambit of Article 23 of the Constitution.
Decide.

SOLUTION:

Yes, the denial of minimum wages amounts to forced labour within the ambit of Article 23
of the Constitution. The same is abolished under the Bonded Labour System (Abolition) Act,
1976.

In People’s Union for Democratic Rights v. Union of India (AIR 1982 SC 1473) popularly
known as Asiad Workers case, where non-payment of minimum wages to construction
workers was successfully challenged, among others, for the violation of Article 23, the
Supreme Court, after an elaborate discussion on the background, philosophy and scope of
that article, held that the prohibition against =traffic in human beings and begar and other

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similar forms of forced labour= is =a general prohibition, total in its effect and all pervasive
in its range=. It is a charter of recognition of human dignity, the Court said, against all-State
as well as private person. Rejecting the argument of the Union that it prohibit only begar or
other unpaid labour the Court held that all unwilling labour is forced labour whether paid or
not and is, therefore, prohibited. On the specific question of minimum wages the Court held
that where someone works for less than minimum wages the presumption is that he is
working under some compulsion. The compulsion may be either the result of physical force
or of legal provisions or of want, hunger and poverty. Emphasizing on the last factor and
declaring the non-payment of wages a forced labour the Court concluded:
<Any factor which deprives a person of a choice of alternatives and compels him to adapt
one particular course of action may properly be regarded as =force= and if labour or service
is compelled as a result of such =force=, it would be forced labour.=

b) Mr. Karthik is working as a senior medical practitioner in a Government

Hospital and drawing a salary of A scale. Mrs. Asha was appointed as junior
medical practitioner in the same hospital and her salary was fixed on the basis of
B scale. Mrs. Asha challenged her scale of payment as it is violating the provisions
of Equal Remuneration Act. Whether Mrs. Asha will succeed? Give reasons.
SOLUTION:

No. Mrs. Asha will not succeed in this case.

As per section 4 of the Equal Remuneration Act, it is the duty of employer to pay equal
remuneration to men and women workers for same work or work of a similar nature. But it is
not applicable in the present case because Mrs. Asha is working in different capacity compare
to Mr. Karthik.

The facts of the given case are similar to the following case;

In C. Girijambal v. Government of AP, [(1981) 2 SCC. 155], it has been held that the
principal of equal pay for equal work is not applicable in professional services.

In Ashok Kumar Garg v. State of Rajasthan, [(1994) 3 SCC 357] it has been observed that
the question of equal work depends on various factors like responsibility, skill, effort and
condition of work.
In State of AP and others v. G Sreenivasa Rao & others, 1989 SCC (2) 290, It was held that
equal pay for equal work does not mean that all the members of the same cadre must receive
the same pay packet irrespective of their seniority, source of recruitment, educational
qualifications and various other incidents of service.

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c) An employer has deducted 60% of amount from the wages payable to one of
his employee for absence from duty. Is it authorised deduction? Decide.

SOLUTION:

No it is not an authorised deduction. Even though the ground for deduction is valid but the
quantum of deduction is against to the provisions of Payment of Wages Act. employers must
exercise caution before making any kind of deductions from the employees9 wages and ensure
that the deductions are within the prescribed limits of the Act. As per section 7(3) of the Act
the amount of deduction must not exceed 50%.
Section 7(3) in the Payment of Wages Act, 1936provides;
(3) Notwithstanding anything contained in this Act, the total amount of deductions which may
be made under sub-section (2) in any wage-period from the wages of any employed person
shall not exceed4

(i) in cases where such deductions are wholly or partly made for payments to co-operative
societies under clause (j) of sub-section (2), seventy-five per cent. of such wages, and

(ii) in any other case, fifty per cent of such wages:

Provided that where the total deductions authorised under sub-section (2) exceed seventy-five
per cent. or, as the case may be, fifty per cent of the wages, the excess may be recovered in
such manner as may be prescribed.

-Abdul .M. Rawoother

59

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Labour LAW-2 Study Material 1

Ballb (Karnataka State Law University)

Scan to open on Studocu

Studocu is not sponsored or endorsed by any college or university

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Labour law – 2 Questions with answers

The fundamental rights and directive principles of state policy are the
backbone of the industrial jurisprudence in india elucidate.
Labour Laws and Constitution of India
The Constitution of India is the touchstone for any Act passed in our country. The Constitution of India is the
largest written constitution of the world. Each and every act which was in force before the enactment of our
constitution were either amended or nullified after its enforcement. Our constitution plays an important part in
the changes and growth in labour laws in India. The Fundamental Rights and Directive Principles of State
Policy enshrined in Part III and Part IV mentions working class related benchmark laws.
Labour laws in Fundamental Rights
Part III of the Constitution of India is the benchmark for labor laws in India. Also, Part III (Article 12 to 35) of
the Constitution covers the fundamental rights of its citizens which includes Equality before the law, Religion,
Sex, caste, place of birth, the abolition of untouchability, freedom of speech and expression and prohibition of
employment of children in factories.
Article 14
Equality before the law which is interpreted in labor laws as “Equal pay for Equal work”. It does not mean that
article 14 is absolute. There are a few exceptions in it regarding labor laws such as physical ability, unskilled
and skilled labors shall receive payment according to their merit.
In the case of Randhir Singh vs Union of India, the Supreme Court said that Even though the principle of Equal
pay for Equal work is not defined in the Constitution of India, it is a goal which is to be achieved through
Article 14,16 and 39 (c) of the Constitution of India.
Article 19 (1) (C)
Constitution guarantees citizens to form a union or association. The Trade Union Act, 1926 works through this
Article of the Constitution. It allows workers to form trade unions.
Trade Unions provide the power to raise voice against atrocities done to the workers. Unionization brings
power to the laborers. Trade Unions discuss various labor-related problems with the employers, they conduct
strikes, etc.
Article 23
Constitution prohibits forced labor. When the Britishers ruled over India, forced labor was prevalent all over
India. They were made to work against their will and weren’t paid according to their work. The Government at
that time were infamous for forced labor and the landlords were also involved in forced labor.
In current times, forced or bonded labor is an offense which is punishable under the law. The Bonded Labor
(Abolition) Act, 1976 prohibits all kinds of bonded labor and is declared illegal.
Article 24

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Constitution prohibits all forms of child labor. Nobody can employ a child under the age of 14 to work. Child
labor was a massive problem of our country in the earlier times and it still is happening but at a lower scale.
The penalization of article 24 is severe.

Relevancy of Part IV (Article 36 – 51) on Labor Laws

Part IV of the Constitution of India, which is also known as the “Directive Principles of State Policy” aims to
work toward the welfare of its citizens. DPSP cannot be enforced in the court of law, but it provides a guideline
to the legislature for making labor laws in India.
Article 39 (a)
> 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. It means that every citizen of the country has the right to earn
a livelihood without getting discriminated on the basis of their sex.
Article 39(d)
Constitution says that The State shall, in particular, direct its policy towards securing; that there is equal pay for
equal work for both men and women. Wages will not be determined on the basis of sex rather it will be
according to the amount of work done by the worker.
Article 41
Constitution provides “ Right to Work” which means that every citizen of the country has the right to work and
the state with the best of its abilities will secure the right to work and education.
Article 42
Provides for the upliftment of the working conditions for workers. It talks about creating a suitable and Humane
workplace. This article also talks about maternity relief, i.e leave provided to women when they are pregnant.
Article 43
Talks about the “living wage” for its citizens. Living wage not only includes the “bare necessities of life” but
also the social and cultural upliftment of the person. It also includes education and insurances for a person.
The State shall constantly try to create opportunities in the fields of Agriculture and Industries with special
reference to cottage industries.
Conclusion
Constitution of India is the base for all laws in our country. The labor laws are also made according to the
constitution and any violation of constitutional laws result in the abolition of that particular law. The Directive
Principles of the State policy play a major role in the making of new labor laws in India.

Constitutional provisions of labour law.

Labor Laws with reference to Directive Principles of State
Policy
The Directive Principle of the State Policy is enshrined in Part IV of the Constitution. The aim of Part IV of the
Constitution is to direct the legislative and executive organs of the government while framing the policies. The

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state shall take all endeavors to build a nation with facilities of the old home, employment, schools to educate,
fair wages to all, good and standard life and act. The directive Principle is not enforceable in any court of law as
they are enshrined as the ‘to-do list’ by the Constitution makers.
Industrialization is the modern trend in almost all developing nations. The proper conditions between employer
and employee are needed or can say it’s on priority for the planned, progressive and purposeful development so
the society. No economy can reach its peak if its labor force is not happy. Post- Independence has witnessed the
evolution of new India with many small scales and large scale industries and factories. Along with the industrial
revolution, the period also witnessed the mass awakening and responsible being towards their rights and duties.
As a result of which during the 20th-century a new branch of Industrial Jurisprudence has developed in our
country. Industrial Jurisprudence paved a way for many labor and industrial legislation not only this many
knocked the doors of High Court and Supreme Court which lead to many landmark judgments. The principles
on which the labor or industrial legislation laid down should be social justice, social equality, international
uniformity, and national economy.

Constitutional Provisions Regarding labor Laws

The Labor laws of independent India derive their strength, origin from the Constitution of India and
International Convention and recommendations. The Part III of the Constitution which is the Fundamental
Right guaranteed the labor force their dignity of work, equal treatment, and savior from exploitation under
Article 16,19,23& 24 whereas, the Directive Principle of State Policy under Article 39,41,42,43,43A which
direct the government to frame the policies to uplift the condition of workers.
India is also a signatory to many UN conventions and human rights which to aims to protect the interest of the
labor class in the world. These include the right to work of one’s choice, right against discrimination, the
prohibition of child labor, just and humane conditions of work, social security, protection of wages, redress of
grievances, right to organize trade unions, collective bargaining, and participation in management

Article 39 of the Constitution

The state shall take the necessary steps in securing:-

• All the citizens, equally, have the right to an adequate means of livelihood.
• The distribution of material resources should be in a way to serve the best common good
• The operation of the economic system does not result in the concentration of wealth.
• Equal pay for equal work
• No exploitation of workers includes men, women, and children. Abuse in terms of strength, economic
necessity and their age.
• Protection of children from any exploitation and abuse, children must be given opportunities and facilities to
develop in a healthy manner.
Dhirendra Chamoli v. State of U.P (AIR 1986 SC 172)
Facts:
The writ petition has been file by two employees of the Nehru Yuvak Kendra, Dehradun name:-Dhirendra
Chamoli and Mohan Singh.

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The complaint made in the writ was Nehru Yuvak Kendra engages number of workers as casual workers on a
daily wage basis and the work done by the daily wage workers is the same work as is performed by the Class
IV employee. The daily wage workers and Class IV workers do the same work but both are given different
salaries and allowances.
Judgment:-
“the writ petitions and make the rule absolute and direct the Central Government to accord to these persons who
are employed by the Nehru Yuvak Kendra’s and who are concededly performing the same duties as Class IV
employees, the same salary and conditions of service as are being received by Class IV employees”.
Article 41
The state shall take endeavor 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
There is a separate legislation Maternity Benefit Act 1961, with an object to do social justice to women
workers. The legislation includes different kinds of wages to the women workers and special allowances,
benefits to the female wage earners before and after the childbirth.
The Act provides that the women will be paid maternity benefit at the rate of her average daily wage in the
three months preceding her maternity leave. This legislation has changed the scenario of women workers and
has brought an end to the exploitation of women and newborns to a greater extend.
Ram Bahadur Thakur vs Chief Inspector of Plantations
In this case, the woman worker who was employed in the Pambanar Tea Estate was denied maternity benefit on
the ground that she had worked for only 157 days instead of 160 days. The court held the women worker claim
and held that all the wage less holiday have to be taken into consideration and the maternity benefit act must be
interpreted to advance the purpose of the Act.
Article 43 and 43 A
Article 42 aims at providing to all workers, agricultural, industrial or other a wage for securing a standard life
and enjoyment of cultural and social opportunities.
1. The state should also take measures, or make legislation, for the participation of workers in the management
of the industrial establishment.
Article 43-A was included in part of the Constitution by the 42nd amendment of the constitution. It is also
known as the Magna Carta of the Industrial Jurisprudence.

explain the salient features of the bonded labour system (abolition)

act 1976 with the help of decided cases.
Laws related to bonded labour in India
Various forms of slavery existed in the Indian society before its independence. It was first legislatively
abolished by the British Empire in 1843, through Act No.V of 1843 also known as the Indian Slavery Act,
1843. However, this practice has not been completely eradicated from the Indian society till date. One of the
most common forms of slavery which is still prevalent in the Indian society is bonded Labour. Even after the
independence, there have been several legislations passed in India which abolishes bonded labour. This article

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would be dealing with the constitutional safeguards available and the laws that abolish this practice. Further,
this article would also discuss the possible causes of the continuance of this practice in India. But before
dealing with any of that, we must understand what exactly is bonded labour.

What is bonded labour?

Bonded labour has been defined as well as addressed as a prohibited practice in several international
conventions as well as a many Indian legislations. It is a system of forced (or partly forced) labour in which a
debtor enters (or presumed to have entered) into an agreement with the creditor. Owing to this agreement,
following are the end results:
Render services to the creditor (by himself or through a family member) for a specified (or unspecified) period
of time with no wages (or nominal wages).
Forfeit the right to move freely.
Forfeit the right to appropriate or sell the product or property at the market value from his (or his family
members’) labour or service.
This definition has been provided in the Bonded Labour System (Abolition) Act 1976.
The said agreement of bonded labour results into an undeniable loss of freedom on part of the debtor. However,
the scope of ‘loss of freedom’, as used above has not been defined so what would be the yardstick of this ‘loss
of freedom’? The National Human Rights Commission has elucidated on the scope in the following manner:
Loss of freedom of employment or alternative avenues of employment to sustain a decent livelihood.
Loss of freedom to earn the minimum wage as notified by the Government of India.
Loss of freedom to move from one part of the country to another.
So speaking in simple words, the system of bonded labour refers to a system wherein a creditor and a debtor
enter into an agreement of rendering services of the debtor as a mode of repayment of the said amount. This
agreement may lapse with time or may continue for an uncertain period of time.
This is also referred as a debt bondage or for the lack of a better word, debt slavery. It is important to
understand that not all the forms of bonded labour are forced but all the forms of bonded labour involve a
certain bondage. It is due to this bondage, the very Constitution of India abolishes the practice of bonded
labour.
As per Article 23 of the Indian Constitution, traffic in human beings and other forms of forced labour are
prohibited. Based on this constitutional provision, the Government of India passed The Bonded Labour System
(Abolition) Act, 1976. In this context, the Supreme Court of India deliberated in the following words – “We
are, therefore, of the view that when a person provides labour of service to another for remuneration which is
less than the minimum wage, the labour or service provided by him clearly falls within the scope and ambit of
the words “forced labour” under Article 23.”
As we can observe, the Supreme Court has well interpreted this constitutional provision and expanded the
scope of Article 23 in this case.

The Bonded Labour System (Abolition) Act, 1976- Salient Features and Criticisms

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Salient Features of the Act

The Act provides several safeguards against the system, to protect the bonded labour from exploitation. Some
of these safeguards are as follows:
 The bonded labour stand discharged from every obligation to provide any form of bonded labour.
 The Act yielded every agreement/ custom void wherein bonded labour existed.
 The Act freed every property which was mortgaged vis- -vis recovery for bonded debt from its
commencement.
 The Act also freed any person who was detained in civil prison in pursuance of a bonded debt.
 As per the Act, once a bonded labour is freed, he cannot be evicted from the homestead.
 The Act has made the offence of practising Bonded Labour punishable, with imprisonment of up to 3 years and
a fine up to two thousand rupees for any person compelling another individual to engage in bonded labour.
 Offences under this Act are cognizable as well as bailable.
Constitutional Safeguards
Now that we are aware of what exactly is a system of bonded labour, let us delve further into the constitutional
safeguards. In the Constitution of India, there are a few safeguards which address the system at hand.
Article 21 of the Indian Constitution – This is the most important and foremost safeguard against any
exploitation of human lives and their liberty. It is part of the Basic Structure of the Constitution and cannot be
amended. It secures the right to life and right to live with human dignity to every person in India. So, any
practice of bonded labour would be in contravention of this Constitutional provision since bonded labour
deprives a person of numerous liberties.
Article 23 of the Indian Constitution – As discussed above, the Constitution of India expressly provides for the
abolition of forced labour and prohibits this form of forced labour in the territory of India. This not only
prohibits bonded labour but also covers the practice of Begar and other forms of human trafficking in India.
Article 39 of the Constitution – This is covered in Part IV of the Indian Constitution which deals with the
Directive Principles of State Policy is albeit not enforceable but are considered irrefutable for the purpose of
governance. This constitutional provision directs the State to secure the right to an adequate livelihood. It also
directs the state to formulate its policies with an object that no citizen is forced out of economic necessity to
enter into avocations which are not suited to them.
Article 42 of the Constitution – This is also a Directive Principle of State Policy which states “The State shall
make provision for securing just and humane conditions of work…” This means that the state must ensure that
every person has a working condition which are just and humane for them. However, since it is part of Part IV,
it cannot be enforced.
Article 43 of the Constitution – This directive directs the State to secure i.a. – conditions for work ensuring a
decent standard of life.
What are the laws in India?
Apart from the above mentioned constitutional provisions and safeguards, there are also a few legislations
which deal with the subject at hand. However, the major law governing the practice of bonded labour is The
Bonded Labour System (Abolition) Act 1976. In addition to this, there are a few more legislations in
consonance with this major law in India such as Contract Labour (Regulation and Abolition) Act 1970,
Minimum Wages Act 1948 and the Inter-State Migrant Workmen (Regulation of Employment and Conditions
of Service) Act, 1979 and even the Indian Penal Code 1860.
The Indian Penal Code recognizes the offence of unlawful compulsory labour and imposes a punishment of
imprisonment for a term extendable to 1 year or with a fine or both.

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The Minimum Wages Act 1948 sets the minimum wage for certain enumerated occupations and requires that
overtime be paid to whoever working beyond the ‘normal working day.’
Similarly, the Bonded Labour System (Abolition) Act 1976 prescribes imprisonment for a term upto 3 years as
well as a fine upto Rs. 2000/-. This punishment is for whoever compelling a person to render their service under
bonded labour and whoever advancing the bonded debt. Every offence under the Act is cognizable and bailable.

What is the consequence of abolition after 1976 under the Act of 1976?
 All the bonded labourers are freed and discharged from all the obligations to render their bonded labour.
 All of the customs, traditions, contracts, agreements or any instruments by virtue of which a person (or any
member of the family) is required to render bonded labour to someone will now be deemed as void.
 Every obligation of a bonded labourer to repay any bonded debt shall be deemed to be extinguished.
 All the decrees for recovery of bonded labour debt which was not fully satisfied shall be deemed as fully
satisfied after the commencement of the Act.
 Every property of a bonded labourer which was removed from his possession or forcible taken from him, shall
be restored to him.
 Every bonded labourer who has been detained in Civil Prison shall be released.
 Freed bonded labourers shall not be evicted from their homestead.

Supreme Court Cases

From the above stated constitutional provisions, it would not be incorrect to say that the State is vested with the
responsibility of securing every citizen with a decent standard of living and ensuring that the prohibited
practices like bonded labour are not practised in India.
Despite these constitutional provisions, can we say that bonded labour does not exist in India? There have been
cases in India even after the enactment of the Act which the Apex Court has dealt very deftly.
In the case of Neerja Chaudhury v. State of Madhya Pradesh, the Supreme Court ruled – “It is the plainest
requirement of Articles 21 and 23 of the Constitution that bonded labourers must be identified and released and
on release, they must be suitably rehabilitated… Any failure of action on the part of the State Government[s] in
implementing the provisions of [the Bonded Labour System (Abolition) Act] would be the clearest violation of
Article 21 and Article 23 of the Constitution.”
As mentioned above, there are a few constitutional provisions that safeguard the system of bonded labour from
being practised. In this case, the Apex Court did very well by relating the issue of bonded labour system with
the person’s fundamental right enshrined in Article 21 of the Constitution and gave a clear thrust to the State to
implement Article 21 and Article 23 of the Constitution.
Also, in the case of People’s Union for Democratic Rights v. Union of India, the Supreme Court of India
delivered the judgement stating – “Where a person provides labour or service to another for remuneration
which is less than minimum wage, the labour or service provided by him clearly falls within the scope and
ambit of the word `forced labour’…”
As seen, the Court has tried to expand the scope of forced labour and protect the rights of citizens time and
again.
Conclusion

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There are several factors which are causing the continuance of this system of forced labour. Often, the usurious
rate of interest is one of the leading factors which contribute to its continuance. Apart from that, faulty system
of adjustment of wages with the amount lent, prevalent ignorance, illiteracy, being socially backward, lack of
debtor’s organisation etc. are all factors contributing to the continuance of bonded labour.
The system of bonded labour is an agreement between two parties; an agreement which in today’s date, stands
void in the eyes of law and is also a punishable offence under numerous legislations of India. Due to the gravity
of this offence, it has also been addressed in numerous international conventions.
Bonded labour is probably the least known form of slavery in today’s date and yet, ironically, it is most widely
performed form of slavery. There have been several initiatives by the National Human Rights Commission to
curb this practice. Apart from that, even the Supreme Court has condemned this practice in India and has given
it an expansive meaning so that it is not practised in any form whatsoever.
But is this enough? No, we must take steps against any system of forced labour and should voice out if a person
is being oppressed due to his status. This is a system which degrades a human to a commodity or an asset. It
should not only be prohibited by law but also be seriously punished. Thus, forced labour, whatever form it may
be, should not be condemned by anyone.

Define the term minimum wage and explain the procedure for
fixation of minimum rates of wages laid down under minimum wages
act 1948
Indian Labour laws- Minimum Wages Act, 1948
Introduction
Labour laws in India include Industrial Dispute Act, 1947; Workmen Compensation Act, 1923; Payment of
Bonus Act, 1965; the Payment of Wages Act,1936; Minimum Wages Act, 1948; Equal Remuneration Act,
1976 etc. The labour laws are subject under Concurrent List in the Constitution of India. Both Central And state
government have the power to make laws upon this subject but some matters are confined to the central
government only. These laws have been made to generate employment opportunities and also to protect and
benefit the workers, including the poor, deprived and underprivileged section of society to establish a healthy
work environment for higher output and productivity. The focus of Government is on promoting welfare
activities and providing social security to the labourers in both organized and unorganized sectors. So, these
purposes can be achieved by enacting labour laws which governs the rules and regulations of service, wages,
compensation, employment of workers. Both Central And State Government have their separate Labour
Ministry which are governed by Central and State labour laws which ensures the working of their subordinate
bodies.

Minimum Wages Act, 1948

History
The concept of minimum wage initially developed in terms of worker’s remuneration in industries, where the
level of wages was much lower as compared to the wages of similar types of labour in other industries. Prior to
the state intervention in the matter of wages, the decision related to the wages was taken by free bargaining
between workmen and employers. But when the enquiry held upon these matters it was revealed that there is
exploitation of women and children in small scale industries. So, to avoid these kinds of malpractices, various

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legislation was introduced. In 1943, Standing Labour Committee and Indian Labour conference constituted a
labour inquiry committee to inquire in matters relating to working conditions and minimum wages of
workers. Ghosh and Nandan, the report which was Submitted by the Standing Labour Committee, became the
basis for Implementing India’s minimum wage policy.
The Minimum Wages Act of 1948 was the first law of India related to the working rights of labourers. The Act
contains detailed procedures which have been set for setting and listing minimum wages in various
industries. Wages were fixed by Appropriate Governments at the central and state levels for various scheduled
employment based on skilled and unskilled labour, agricultural and non-agricultural employment and minimum
wages in different states for a specific time period in India under its domain. Hence, the objective of the
Minimum Wages Act was to provide more rights to the worker class.
The Tripartite Committee on Fair Wages appointed in 1948 defined three different types of wages: a Living
wage, fair wage and minimum wage. Living wage was defined as allowing a person to live a decent life for
himself and his family and the other factor is equal to fair wages should be based on productivity. The
committee accepted that the general wage level was low and stated that there should be a balance built between
employee subsistence and normal productivity. Finally, the minimum wage was not only on the basis of
subsistence but also on the basis of labour efficiency. The purpose of the Act was to protect workers from
labour exploitation which was held in the case of Chandra Bhavan Boarding and Lodging Bangalore v. State of
Mysore and another. Protection from exploitation was to be achieved by providing representation and speedy
compensation to the workers. There was a provision of an Advisory Committee and Advisory Board to give
workers and employers equal representation to reduce unequal bargaining. Thus, the Act provided early
resolution to labour disputes through a summary process that would ensure penalties and then civil prosecution
of the offending party.

Objective
The Minimum Wages Act has been passed for the benefits of workers. It came into existence to secure and for
the welfare of workers in competitive market by providing minimum wages in certain employment. It
empowers the Central And State Government to fix the minimum wage in certain employments to prevent the
exploitation of labourers or unprivileged class of labours. The objectives of are:
To allot Fixed of minimum wages in schedule employment.
Empowers the Government to take steps regarding fixation of wages and to revise them in every five years.
To prevent exploitation of workers.
To provide appointment of Advisory Committee and boards having equal number of representatives of both
employers and workers.
To apply this law to the majority in organized sector.

Application of the Act

The Act applies to the whole India except Jammu and Kashmir. It applies in those sectors which employs 1000
employees in respective sector. It does not apply on the employees who are governed under Central government
or the federal railways, except with the consent of the Central Government.

Salient features of the Act

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The Act provides the fixation of:

 Minimum time rate of wages.
 Minimum piece rate.
 Overtime rate for different occupations or class of work for adults, adolcensents, children and apprentices
 The minimum wages under the Act may contain:
 Basic rate of wages and living allowance.
 Basic rate of wages with or without living allowance cost.
 The Act requires to pay the wages in cash , but it also empowers the Government to sanction the payment of
minimum wages, in kind in particular cases either wholly or partially.
 This also gives authority to Appropriate Government to fix the number of working hours per day, to provide a
weekly holiday and the payment of overtime with regard to any scheduled employment in respect of which the
fixation of minimum rate of wages is done under the Act.
 It also provide appointment of Inspectors and competent authorities to hear and decide the issues arising out of
payment of wages at less than the minimum rate of wages or remuneration of days of rest or of work done on
such days of overtime. It also provides dealing with the complaints made for the violation of the provision of
the Act and also improving the penalties for the offences committed under this Act.

Fixing of minimum rates of wages

Section 3 of Minimum wages Act, 1948 lays down that the Appropriate Government shall be empowered to fix
the minimum rate of wages in a manner which is prescribed in the Act. It shall fix the wages which has to be
paid to the employees employed in employment under Part I and Part II of the schedule.
The appropriate Government shall have the authority to review the minimum rates of wages to fix and revise
the minimum rate if required, at such intervals as may be deemed fit. The intervals must not exceed 5
year. Subsection (1-a) describes that Appropriate Government may abstain from fixing minimum rates of wages
in respect of any scheduled employment in which there are less than one thousand employees are involved in
such employment.
Minimum rates of wages
Section 4 states that any minimum rates of wages fixed or revised by the appropriateGovernment in respect of
scheduled employment in Section 3 may include:
 The basic rate of wages and a special allowance shall be adjusted in such intervals which may be directed by
the Appropriate Government which varies with the cost of living index.
 The basic rate of wages with or without cost of living allowance based on the cost of living index number.
 All inclusive rates is allowing for the basic rate of wages with the cost of living allowance and cash value of
concessional supply of materials.

Procedure of fixing and revising minimum wages

Section 5 deals with the procedure of fixing and revising minimum rates of wages in respect of any scheduled
employment under this Act or revising minimum rates of wages so fixed , the Appropriate Government shall
either:
 Appoint as many committees and Subcommittees as it considered necessary to hold enquiry and advise it in
respect of such fixation and revision, or

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 By notification in the official Gazette, publish its proposal for the information of the person likely to be affected
thereby and specify the date which must not be less than two months from the date of notification of which the
proposals will be taken into consideration.

Advisory board
The Appropriate Government Shall according to Section 7 appoint an Advisory Board for the purpose of :
Coordinating the work of committees and sub-committees, appointed under Section 5; and
Advising the Appropriate Government in the matter of fixation and revision of minimum rates of wages.
Besides the Advisory Board may frame the procedure to be adopted for discharging its functions under Section
5 of the Act
Central Advisory board
Section 8 makes it obligatory upon the Central Government to appoint a Central Advisory Board for the
following purposes:
a) Advising the Central And State Government in the matters of the fixation and revision of minimum rates of
wages and other matters under the Act, and
b) For co-coordinating the work of the Advisory Boards.
Section 8(2) provides that the Central Advisory Board shall consist of :
a) Persons to be nominated by the Central Government representing employers and employees in the scheduled
employment, who shall be equal in number; and
b) Independent persons not exceeding one-third of its total number of members.
The Chairman of the Central Board shall be one of the independent persons and shall be appointed by the
Central Government.

Composition of committees
Section 9 provides that such committees, sub committees and the Advisory Board shall consist of persons to be
nominated by the Appropriate Government. Persons who can be appointed to these committees shall be
representatives of employers and employees in scheduled employments and shall be equal in number. The
person who are independent must not exceed one-third of the total number of members in such bodies shall also
be appointed. The Appropriate Government shall appoint one of such independent persons to be the Chairman.
The expression independent person in this section means a person other than those who are employers and
employees in relation to the scheduled employment in respect of which minimum wages are sought to be fixed.
The fact that the person nominated to function as an independent member of the committee is a Government
official, there is no-bar to such nomination. It does not mean that persons in the employment of Government
were to be excluded. The presence of high Government officials who may have actual working knowledge
about the problems of employers and employees can afford a good deal of guidance and assistance in
formulating the advice which is to be tendered under Section 9 to the appropriate Government. The
appointment of a Labour Commissioner, as a Chairman, who is conversant with the employment conditions and
representing independent interest is valid.

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Payment of minimum rates of wages

Section 12 lays down that in respect of any scheduled employment for which a notification under Section 5 is in
force, the employer shall pay to every employee engaged in a scheduled employment under him, wages at a rate
not less than the minimum rate of wages fixed by such notification for that class of employees in that
employment without any deductions except as may be authorized within such time and subject to such
conditions as may be prescribed. Provisions of Section 12 of this Act should not affect the provisions of
the Payment of Wages Act, 1936.

Fixing hours of normal working day, etc

Section 13(1) provided that, in regard to any scheduled employment minimum rates of wages in respect of
which have been fixed under this Act, the Appropriate Government may:
 Fix the number of hours of work which shall constitute a normal working day, inclusive of one or more
specified intervals.
 Provide for day of rest in every period of seven day which shall be allowed to all the employees or any
specified class of employees and for the payment of remuneration in respect of such a day of rest.
 Provide the payment of work on a rest day must not be less than the overtime rest.
According to Section 13(2), the provisions of sub-section (1) shall, in relation. to the following classes of
employees apply only to such extent and subject as may be prescribed in respective Act:
 Employees engaged on urgent work, or in any. emergency which could not have been foreseen or prevented.
 Employees. engaged in work in the nature of preparatory or complementary work which must necessarily be
carried on outside the limits laid down for the general working in the employment concerned.
 Employees whose employment Is essentially intermittent.
 Employees engaged in a work which could not be carried on except at the time dependant on irregular action of
natural forces.
 Employees involved in any work which for technical reasons has to be completed before the duty.

Maintenance of Register and Records

Every employer has to maintain register regarding these:
 Every employer shall maintain such registers and record containing such particular of employees employed by
employer.
 Update the work performed by employees.
 Wages paid to the employees.
 Maintain the receipts given by the employers.
 Every employer should hold the notices exhibited in such a factory, workshop or place as used for giving work
to employees.
 The appropriate Government can provide for the issue of wage books or wage slips to employees employed in
any scheduled employment as per the rules made under the Act.
Claims
Section 20(1) empowers the Appropriate Government to appoint, by notification in the official Gazette, in
authority to hear and decide for any specified area the following claims:
 Any claims arising out of payment of. less than the minimum rates of wages.

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 Claim in respect of payment of remuneration for days of rest.

 Any. claim in respect of payment of remuneration of work done on such days under clause (b) or (c) or Section
13(1).
 Any claims of wages under overtime rate under Section 14 or employees employes or paid in that area.
Who can be appointed as authority?
The following persons may be appointed an authority to decide any claims aforesaid:
 Any Commissioner tor, Workmen’s Compensation.
 Any officer of Central ‘Government exercising as a Labour Commissioner for any region.
 Any officer of the StateGovernment not below the rank of a Labour Commissioner.
 Any other officer with experience as a Judge of a Civil Court.
Penalties
Section 22 deals with Fines or penalties which cannot be imposed on any employed person in relation to the
omission of such acts by the employer with the authority specified as the previous Government approval or
notice under sub-section (2).
Notices specifying such acts and omissions may be displayed in the prescribed manner in the premises in that
case or place of a person employed like a railway (in a factory) at the appointed place or places. Penalties
cannot be imposed on a person employed unless he is the reason for the fine or following such procedure as
may be prescribed for the imposition of a fine.
The total amount of penalty on any employed person in any pay period should not exceed an amount equal to
3% of the wages payable to him in relation to that pay period. The fine cannot be imposed on any employed
person who is under fifteen years of age.
Conflict of MGNREGA wages rate or minimum wages rate
Mahatma Gandhi National Rural Employment Guarantee Act is a scheme which guarantees employment for
100 days at a rate of wage of INR 120 per day (determined in 2009). These benefits can be secured by any
family, whether they are below the national poverty line or above. The Central Government removed the
MNREGA wage rates from the state’s lowest minimum wage rates in January 2009 when states such as Uttar
Pradesh, Rajasthan and Maharashtra revised and increased their minimum wage rates. This had implications for
the MNREGA scheme directly in the Central Government budget. The move to stop the MGNREGA scheme
created distress in various parts and sections of India as the move was considered to dissolve the Minimum
Wages Act, 1948. MNREGA wage rates were lower than the minimum wage rates of the respective states and
they were in five states below the national level of minimum wage.
Protests erupted across India with disputes regarding corruption, workers’ payments, poor quality of
infrastructure, unclear sources of funds and unintended negative impact on poverty. The recommendations
made by the National Advisory Council headed by Jean Dreze and the Central Employment Guarantee Council
that MGNREGA wage rates should be coordinated with the Minimum Wages Act were rejected by the Central
Government. The Central Government stuck on its decision to freeze MGNREGA wages even after a Supreme
Court order. Eventually, the Prime Minister agreed to accept the recommendations and converted MNREGA
wages into minimum wage rates until an expert committee headed by Pranab Mukherjee produced a
satisfactory index. However, he maintained a clear distinction between MGNREGA wage rates and minimum
wage rates to avoid an increase in the budget on the revision of state-wise minimum rates.

Constitutional validity of the Act

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The Act is not unreasonable.

One of the directive principles of state policy, incorporated in Article 43 of the Constitution of India, speaks of
giving workers living wages, which not only ensures material subsistence, but health and decency are important
to the public interest. While it is true that individual employers may find it difficult to do business on the basis
of the minimum wage prescribed under the Act, it should not be the entire basis and reason for declaring the
law unreasonable.
In the case, Gulmuhommad Tarasaheb a bidi factory by its proprietors Shamrao vs State Of Bombay it was
decided by the court that “The restrictions, though they interfere to some extent with the freedom of trade or
business guaranteed under Article 19(1)(g) of the Constitution, are reasonable and being imposed on the general
interest of the general public, are protected by the terms of clause (6) of the Article 19.”
The determination of the minimum wage is for the preservation of public order, and if there is no minimum
wage set, it will cause employers to be arbitrary and this will undoubtedly lead to a confrontation between the
employer and labour which will create “friction in society”
The case of Uchinoy vs. State of Kerala the judgement includes, “ As regards to the procedure for fixing of the
minimum wages, the ‘Appropriate Government’ has undoubtedly been given very large powers , but it has to
take into consideration, before fixing wages, the advice of the committee if one is appointed on the
representations on proposals made by persons who are likely to be affected thereby. The various provisions
constitute an adequate safeguard against any hasty or capricious decision by the ‘Appropriate Government’. In
suitable cases, the ‘Appropriate Government’ has also been given the power of granting exemptions from the
operations of the Provisions of the Act. There is no provision undoubtedly, for a further review of the decision
of the Appropriate Government, but that itself would not make the provisions of the Act unreasonable”.
Doesn’t violate Article 14 of the Constitution
On a careful examination of the various of the Act and the machinery setup by this Act, Section 3(3)(iv) neither
contravene Article 19(1) of the Constitution nor does it infringe the equal protection clause of the Constitution.
The Courts have also held that the Constitution of the committees and the Advisory Board did not contravene
the statutory provisions in that behalf prescribed by the legislature, this was decided in the case of Bhikusa
Yamasa Kshatriya vs Sangammar Akola Bidi Kamgar Union.
As it was held in the case of “C.B. Boarding & Lodging it added to the mentioned case that ,”nor the reason
that two different procedures are provided for collecting information”.
Notification of fixing different rates of minimum wages for different areas is not discriminatory.
It was stated that where the determination of wage rates and their revision was detected by detailed survey and
investigation and the rates were implemented after considering the representation made by a section of the
employer, it would be difficult To place that notification on the basis of fixed rates of minimum wages for
various sectors, it was based on rational deliberation with the purpose of the Act, and thus violated Article 14.
As the matter came into light by one of the India’s Union Labour and Employment Minister Shri Mallikarjuna .
The variation of minimum wages between the states is due to differences in socio-economic and agro-climatic
conditions, the prices of essential commodities, paying capacity, productivity and local conditions influencing
the wage rate. The regional disparity in minimum wages is also attributed to the fact that both the Central and
the State Governments are the Appropriate Governments to fix, revise and enforce minimum wages in
Scheduled employments in their respective jurisdictions under the Act.
Despite saying nothing in the above statements, it was decided in the case of [Link] Charitable Hospital
vs. State of Maharashtra that “fixing of Different minimum wages are allowed for different localities under the
Constitution and Indian labour laws, hence the question whether any provision of the Minimum Wages Act is
wrong against the provision of the Constitution.”

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The Constitution of India accepts the responsibility of the state to create an economic system, in which every
citizen gets employment and receives “fair pay”. This made it necessary to set clear criteria for identifying fair
pay. Therefore, in its first session of November 1948, a Central Advisory Council appointed a Tripartite
Committee on fair pay. The Committee consisted of employers, employees and Government representatives.
Their job was to inquire and report on the subject of fair wages of labour.
Sanctity of the Act
It is a clear decision of the Supreme Court in their three rulings held that non-payment of minimum wages leads
to “forced labour” which is prohibited under Article 23 of The Indian Constitution. ‘Forced labour’ can arise in
many ways like hunger and poverty, want and destruction.
In the case of Sanjit Roy Vs. State of Rajasthan, the Supreme Court has decided that ‘The Exemption Act in so
far as it excluded the applicability of the Minimum Wages Act, 1948 to the workmen employed in famine relief
work is “clearly violative” of Article 23. Thus, even public works ostensibly initiated by the Government for
the sole purpose of providing employment are subject to the Minimum Wage Act.
After considering the decision of the Supreme Court, the Andhra High Court set aside the notification
ofGovernment of India which makes the payment of minimum wages mandatory in prevailing states. This is
outlined in a legal opinion provided by Ms. Indira Jaisingh, Additional Solicitor General to the Working Group
of wages of the Central Employment Guarantee Council (CEGC), where she made it clear that Section 6(1) to
allow payment less than minimum wages in MNREGA works will lead to forced labour. Eminent jurists and
lawyers from India have also asked the Government of India to immediately cancel its unConstitutional
notification and ensure that all workers in India are paid the minimum wage.
The Act and the decision are in favour of equality provided under Article 14 of the Constitution and a decision
in the case namely “Engineering Workers Union [Link] of India (1994), “The provision under Section
3(2)(a), that the fixed rate of wages fixed or revised in the prescribed employment shall not apply to the
employees during the period, has violated the equality clause of Article 14 and hence this section is void. “.
In view of the Directive Principles of State Policy contained in Article 43 of the Constitution of India, it is
beyond doubt that the labourers receive a living wage which not only ensures physical subsistence, but
maintains health and decency.
Conclusion
India consists of 487 million workers, the second largest after China. India has numerous labour laws for
prohibiting discrimination and child labour. The Act aims to guarantee fair and human conditions of work,
provide social security, minimum wages, right to organize, form trade union and enforce collective bargaining.
It protects the exploitation of those who are poor in majority, who are socially and economically disadvantaged
people. Therefore, it seems necessary for such law not only appears on paper but serve some assurance from
exploitation to gain the trust of people. Governments are bound to comply with the socio-economic laws,
failure of which will be a violation of Article 21 of the Constitution of India. India is considered to be the
highly regulated and most rigid labour laws countries in the world . They need to be flexible for their proper
implementation and should be reviewed from time to time according to the need of labour and economy’s
dynamics.

Explain the salient features of payment of gratuity act 1972

Or
Determination of payment of gratuity.

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Payment of Gratuity Act, 1972

Introduction
The Payment of Gratuity Act is a genre of various statutes like the Minimum Wages Act, Employment and
Social Policy, etc. which is an extension of labour laws and it lays down the minimum benefits to be provided
to the employees. It is a social security enactment providing for the welfare benefits of the employees working
in industries, companies and organisations.

Scope and Objective

The Payment of Gratuity Act,1972 was enacted with sole objective of providing gratuity i.e., a monetary award
given for services rendered to the employees working in the factories, oilfields, mines, plantations, railway
companies, shops or other establishments upon their superannuation (e.g.,old age retirement amount,etc.),
retirement, resignation, death or disablement.
Payment of Gratututy Act, 1972
Continuous Service
According to this Act, the continuous service means an uninterrupted service during the employment period.
This includes the leave due to sickness, accident, lay off, strike, etc. If the interruption is of six months or one
year, then the employee is not entitled to gratuity benefits. He/She should have worked for at least 190 days in
mine or coalfield like establishment(where duration of work is only for 6 months) and 240 days in other areas.
Recently, a question arose before the Supreme Court of India that whether the services provided by the
employees were regularised or not and whether they are entitled to gratuity amount or not in the case of Netram
Sahu v. State of Chhattisgarh. The appellant employee had in all rendered 25 years and 3 months of service (22
years and 1 month as daily wager and 3 years and 2 months as regular work charge employees). However, the
Appellant was not paid the gratuity amount by the State after his retirement because out of the total period of 25
years of his service, he worked 22 years as daily wager and only 3 years as a regular employee, the Supreme
Court of India held that the state should release the gratuity amount of the employee because the Appellant had
actually rendered the service for a period of 25 years. Because the services were regularised, the appellant was
entitled to claim its benefit for a period of 25 years regardless of the post and the capacity on which he worked
for 22 years. This shows that whether the services were regularized or not, is of no significance to the
continuous service to the said Act.
Controlling Authority
The controlling authority shall be appointed by the appropriate government for the proper administration of this
Act. The government may appoint different controlling authority for different areas also.
Payment of Gratuity
An employee is entitled for the payment of gratuity if he/she has rendered five years of continuous service on
his superannuation, retirement, resignation, death, disablement. However, the five years of continuous service is
not mandatory in the case where the termination is due to death or disablement. A retired person is also entitled
to gratuity amount along with his pension. This was held in the case of Allahabad Bank and others v. All India
Allahabad Bank Retired Employees Association, where the honorable court held that pensionary benefits may
include both pension amount and gratuity amount but gratuity amount is a must to be paid to the employees.
In the case of death or disablement by accident or disease, the employer is under obligation to pay the gratuity
amount to the employee’s nominee or the legal heir, as the case may be, irrespective of the number of years
continuous services has been rendered.

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The Act also has a provision for the minors as a legal heir in which the controlling authority has to invest the
amount in such banks or other financial institutions for the benefit of the minor until he/she becomes a major.
Further, the Act provides for the services rendered for at least 6 months where the gratuity amount will be
calculated at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned,
provided that the amount paid for the overtime work will not be considered.
The amount of gratuity shall not exceed Rs. 10 Lakhs.
An employee holds a right to receive a gratuity for services rendered, however, this right of an employee can be
curtailed in two conditions:
If the termination is due to willful omission or negligence causing loss, or damage, or destruction of property
belonging to the employer.
If the termination is due to riotous or disorderly conduct or constitutes of an offence which is immoral in nature.

Compulsory Insurance
Section 4A of the Act provides for the compulsory insurance to every employer other than those belonging to
the Central Government or State Government through Life Insurance Corporation. However, those employers
are exempted from this provision who have an established and registered gratuity fund in their company. The
government may also make rules for the enforcement of this section as and when necessary. Violation of this
provision by anyone may lead to penalty.
Power to Exempt
The Act provides the power to exempt to the appropriate government by notification to declare any
establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted from gratuity if the
government is of the opinion that the establishment has favourable benefits not less than what this Act has been
providing. The same law applies to any employee or class of employees.
Nomination
According to this Act, it is necessary for the employee to prescribe for the name/names of the nominee soon
after completing one year of service. In case of a family, the nominee should be one among the family members
of the employee and other nominees shall be void. Any alteration or fresh nomination must be conveyed by the
employee to the employer who shall keep the same in his safe custody.

Determination of the Amount of Gratuity

The person entitled to receive the gratuity amount shall send an application in writing to the employer. The
employer shall calculate the gratuity amount and provide notice in writing to the concerned employee and the
controlling authority. The payment should be made within 30 days from the date payable to the employee.
Failure of payment within the prescribed limit will result in payment of simple interests. However, if the
delayed payment is because of the employee then the employer is not entitled to pay the simple interests.
In a landmark case of Y.K. Singla v. Punjab National Bank, the highest court of India, the Supreme Court had
to decide whether an employee whose gratuity has been withheld under Regulation 46 of the Punjab National
Bank (Employees) Pension Regulations is entitled to get interests because of the delay after the completion of
the proceeding? The court held that even though the provisions of the 1995 Regulations, are silent on the issue
of payment of interest, the appellant would be entitled to interest, on account of delayed payment under the
Payment of Gratuity Act for the benefit of the employee.

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The disputes arising between the employee and employer shall be referred to the controlling authority and
proceeding for the resolution presided by the controlling authority shall be considered to be judicial proceeding.
The controlling authority has the authority to enforce the presence of any person and examine his oath,
production of relevant documents and issuing commissions for the examination of witnesses if required. After
due inquiry and giving the parties a reasonable opportunity of being heard, the controlling authority may
determine the matters and pass appropriate orders. The aggrieved party can apply for appeals to the
government.
Inspectors Appointed for the Purpose of this Act and their Powers
The government may appoint an inspector or inspectors who are deemed to be a public servant under Section
21 of Indian Penal Code for the purpose of ascertaining whether any of the provisions of this Act are being
violated or not complied with and take necessary measures to ensure the fulfilment of all the provisions of this
Act.
Recovery of Gratuity
If the employer delays in the payment of gratuity amount under the prescribed time limit, then the controlling
authority shall issue the certificate to the collector on behalf of the aggrieved party and recover the amount
including the compound interest decided by the central government and pay the same to the person. However,
these provisions are under two conditions:
The controlling authority should give the employer a reasonable opportunity to show the cause of such an Act.
The amount of interest to be paid should not exceed the amount of gratuity under this Act.

Penalties
Violation of the provisions of the Act shall entail certain penalties. They are:
For avoiding any payment, if someone makes a false representation or false statement shall be punishable with
imprisonment for 6 months or fine up to Rs. 10,000 or both.
Failure to comply with the provisions of this Act shall be punishable for a minimum of 3 months which may
extend upto 1 year or a fine of Rs. 10,000 which may extend upto 20,000.
Non-payment of gratuity under the Act will lead to offence and the employer shall be punishable with
imprisonment for at least 6 months and which may extend upto 2 years unless the court provides for the
sufficient reason for less payment.
Exemption of Employer from Liability
An employer if charged with any offence punishable under this Act, shall be exempted from any liability, if he
provides sufficient reasons for his conduct of the act or some other person doing that act without his
knowledge. The other person if found guilty will be charged with the same punishment as an employer shall be
charged.
Cognizance of Offences
The court cannot take cognizance of the offences punishable under this Act unless the amount of gratuity to be
paid has not been paid or recovered within 6 months from the expiry of the prescribed time. In such cases, the
government shall authorise the controlling authority to make a complaint where the authority has to make a
complaint to the metropolitan magistrate or judicial magistrate of first class within 15 days of the authorisation.
Protection of action taken in good faith

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The controlling authority shall not be under any legal proceeding if the acts done by him is in good faith or
under any rule or any order.
Protection of Gratuity
No exempted gratuity which is payable under this Act to the employee by the employer shall be liable to the
attachment of any order or decree by any court.
Act to override other enactments
Since the Payment of Gratuity Act is complete in itself, therefore, this Act has an overriding effect on all
provisions, regulations and statutes relating to gratuity. The landmark case for this provision is University Of
Delhi vs Ram Prakash And Ors. which states that any provision which is more beneficial for the employees
should be considered to be having overriding effect.
Power to make rules
The power to make rules in the Payment of Gratuity Act, 1927, shall rest with the appropriate government and
declare by notification.
Validation of amendments made in this Act
The rules made has to be presented before both the houses of the parliament when in session. If both the houses
are in conformity for the annulments or the modifications, then it shall be applicable immediately otherwise
such modifications will have no effect.
Conclusion
The Payment of Gratuity Act, 1927, is a welfare statute provided for the welfare of the employees who are the
backbone of any organisation, company or startups. The gratuity amount encourages the employee to work
efficiently and improve productivity. Recently, by the Payment of Gratuity (Amendment) Act, 2018, the central
government has tried to promote social welfare by providing leverage to the female employees who are on
maternity leave from ‘twelve weeks’ to ‘twenty six weeks’.
However, the scope of this Act is limited to large scale companies or organisations and is not applicable to
organisations where the number of employees is less than 10. Yet, the Act in its entirety is complete and
therefore it overrides other Acts and statues in relation to gratuity. The only need of the hour is to change or
modify the implementation of the Act as this Act is still not followed by many companies or corporations.

Explain the concept of bonus. How is it calucalted.

Introduction
Payment of Bonus Act, 1965 is a statutory liability on the part of the employers of the establishment to pay to
the labour, in accordance with the capital available for the peaceful functioning of the establishment. The
purpose of the Act was to enable the employees to have a say in the profits of the company and to earn a little
more than the minimum wage according to their performance in the organisation.
This Act is applicable throughout India on the factory workers and the persons employed in railways or is in
contract with railways. It also includes skilled or unskilled workers, whether under the express or implied terms
of the contract.

Establishment to include department, undertakings, and branches

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The term “establishment” in this Act is of great importance. It could be divided into Public and Private
establishments. However, if these establishments function as different departments or branches then those
departments and branches would be treated as a single establishment, but in case, different accounts are
prepared for these branches and departments, then they would be treated as different departments or branches
for the sake of computation of profit for that particular accounting year.

Computation of Gross profit

Gross profit is calculated for an accounting year
(i) Banking Company– in accordance with the first schedule.
(ii) In other cases– according to the manner prescribed in the second schedule.
Computation of available surplus
The available surplus is calculated taking into account the gross profit after making adjustments of depreciation,
development allowance, direct taxes of the current accounting year and all the sums specified under Schedule
3 of the Act. This gross profit has to be added to the direct taxes in respect of the gross profit for the preceding
year, deducting from it the direct taxes which has been adjusted to the gross profits that are reduced to the
amount of bonus, for the immediately preceding year.

Sum deductible from gross profits

The following sums need to be deducted from the gross profit:

 Any amount by way of development rebate, investment allowance or the development allowance, which is
deductible from the income according to the income tax.
 Any direct tax which the employer has to pay with respect to his income, profits, and gains during that year.
 Any other sums which are specified by the employer.
 Any amount of depreciation according to the Income Tax Act, 1961 or Agricultural Income Tax law.
 Calculation of direct tax payable by the employer
 The direct taxes are calculated as per the present year’s income of the employer. In case the employer is an
individual or part of the Hindu Undivided Family, then the income which will be considered for the taxes will
be treated as the only income of the employer.
Moreover, if the employer is a religious institute or charitable trust, not barred by Section 32 of the Act and if
its income is partially or fully non-taxable then the income which is non-taxable would be treated as the income
from an institution in which the public is substantially interested.
However the income would not include any loss of the previous year which is carried forward to this year under
any existing law or the depreciation that need to be accounted to the depreciation allowance or any exemption
under Section 84 of the Income Tax Act or any deduction under Section 101(1) of the Income Tax Act, 1961.
Eligibility for bonus
Under the present enactment, every employee is entitled to get a bonus only if he has worked for a minimum
period of 30 days.
The minimum bonus which the employee would get in an accounting year would be 8.33% of the salary or
wages of the employee or ₹ 100 whichever is more. In cases where the age of the employee is less than 15 years

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at the beginning of the accounting year, this provision would have the same effect except in the place of ₹ 100 it
would be ₹ 60.
The maximum bonus which an employee could get in an accounting year is equal to 20% of the salary or wages
of the employee in the given accounting year. The employer is bound to pay the maximum bonus when the
allocable bonus has exceeded the minimum bonus of that accounting year.
The employee would be disqualified for a bonus if he has been terminated from employment on account of
fraud or theft, misappropriation or sabotage of the establishment’s property or has displayed violent or unruly
behaviour in the premises of the establishment.
Calculation of bonus with respect to certain employees
Where the salary of the employee exceed ₹ 7000 per mensem or minimum wages applicable for such
employment as fixed by the government, whichever is higher, such employee would be entitled for bonus
under Section 10 or Section 11 of the Act as if the salary or wages is ₹ 7000 per mensem or minimum wages
applicable for such employment as fixed by the government whichever is higher.
Proportionate reduction in bonus
If an employee has not worked for any day in the accounting year, his minimum bonus which is ₹ 100 (or ₹60)
or his salary or wages subject to 8.33%, whichever is higher would be reduced proportionately.
Computation of the number of working days
The computation of the working day is an important criterion for the calculation of the bonus. The employee
would be considered working even on the days when he is on leave but is paid salary or wages or he is on a
maternity leave with salary or wages, or he met with an accident while in undertaking the employment or he has
been laid off under an agreement or as permitted under the Industrial Employment Act, 1946 or Industrial
Disputes Act, 1947 or any legal provision which is applicable on the establishment at the given time.
Set on and set off of allocable surplus
The allocable income which is left even after paying the maximum bonus at the rate of 20% on the salary or
wages, would be carried forward to the next year to compensate in case there is any shortage in that year. This
is called set on.
However, the set off is the complete opposite of set on in which the profit falls short to pay even the minimum
bonus at the rate of 8.33%. Then, in this case, the set on of the previous year would be used to pay the bonuses
of the given accounting year.
In calculating the bonus, the amount of set on and set off from the previous accounting year shall be first taken
into consideration. This allocable income would be distributed to the employees in proportion to their salary or
wages in a given accounting year.
Special provisions with respect to certain establishments
In the first five accounting years, after the establishment has started selling and manufacturing goods or
rendering services, it has to pay bonuses only in case of profits.
However, in the sixth, seventh and eighth accounting year, after the establishment has started selling and
manufacturing goods or rendering services, the bonus shall be paid, taking into account the set on or set off.
In the case of the sixth year, the allocable surplus of the fifth and the sixth year would be taking into account
and in the case of the seventh year, the allocable surplus of the sixth and the seventh year is taken into
consideration.

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Adjustments of customary or interim bonus against bonus payable under the Act
If the employer has paid any puja bonus or any other customary bonus or has paid the bonus before the date on
which the bonus becomes payable, then, in that case, the employer has the right to deduct the amount of bonus
from the actual bonus payable, and the employee shall get the remaining amount.
Deduction of certain amounts from bonus payable under the Act
If the employee is found to be guilty of misconduct due to which the establishment has to bear losses then such
an establishment has the right to deduct the amount of loss from the bonus that has to be paid to the employee
in that accounting year and shall be paid the balance if any.
The time limit for payment of bonus
Under the provisions of this Act, the employees must be awarded the bonus within 8 months from the closure of
the accounting year. However, in cases of disputes (under the purview of the Industrial Dispute Act), the bonus
has to be paid within 1 month from the time when the settlement becomes effective.
Application of Act to establishments in the public sector
If any public establishment manufactures or sells any product or renders any services and the income from them
is less than 20% of the gross income of such public establishment then the provisions of this Act shall apply to
it in the same manner as if it is a private establishment. However, except for the above case, the provisions of
this Act would not be applicable to the employees working in the public establishment.
Recovery of bonus due to an employer
In case of any amount of the bonus which is due from an employer, the employee can or any of his assignees or
in case of his death his heirs, have the right to make an application to the government and if it is satisfied with
the veracity of the application then it shall issue a certificate to the collector who shall proceed to recover the
amount in the like manner as if it were an arrear of land revenue.
However, such an application must be within one year after the payment has become due, if the application is
made after the expiry one year and the government is satisfied with the reasons for doing so, then that
application could be entertained.
Reference of disputes under the Act
In case of any dispute between the employee and the employer, that shall be treated as an industrial dispute
within the meaning of Industrial Dispute Act or any other Act which is dedicated to the investigation and
settlement of the disputes of like nature. Such law shall be applied as expressed.
Presumption about the accuracy of balance sheet and profit and loss account of corporations and companies
The disputes falling under the purview of the Industrial Dispute Act or any other law dedicated to the
investigation and settlement of the disputes of like nature would be referred to an arbitrator or a tribunal in
accordance with the above-mentioned laws. If the balance sheet or the profit and loss account of the
corporations or the companies are audited by the Auditor General of India or any other auditor who is
empowered to do so under the Companies Act, then there is no need to file an affidavit to prove its accuracy.
However, if the tribunal or the arbitrator is certain about the inaccuracy of the balance sheet or the profit and
loss account then it can take any steps that it deems necessary to find out the accuracy of the balance sheet and
the profit and loss accounts.

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The trade unions or the employees, being a party to the dispute, can file an application to the authority for any
clarification in the balance sheet or the profit and loss statement. The authority, after satisfying itself about the
need for such clarifications, would further direct the company and corporation to tender the required
clarification to the other party.

Audited accounts of banking companies not to be questioned

In case of the dispute (as per Section 22 of the Act), where one of the party is a banking company and it has
rendered its account, to the authority which is duly audited, the trade union or the employee which is the other
party has no authority to question the accuracy of the accounts. However, it can ask for information to verify
the amount of bonus.
The trade union or the employee cannot ask for any information which the banking company is not obliged to
give as per the banking regulations Act.
Audit of accounts of employers, not being corporations or companies
In case of a dispute between an employee and the other party not being a corporation or company and if it has
tendered an account which is duly audited by an auditor empowered to do so under the Companies Act, 2013
then Section 23 of the Act would be applicable.
If however the accounts are not audited and the said authority thinks that it is necessary to have an audited
account for making a decision, then it can direct the employer to get the accounts audited by the specified time.
If the employer fails to get the accounts audited then, in that case, the authority itself can get the accounts
audited by the auditor and the authority is also entitled to levy punishments in accordance with Section 28 of
this Act. The expenses incurred by the authority, in this case, shall be recoverable from the employer and if the
employer does not pay the expenses then it would be recovered as per Section 21 of the Act.
Maintenance of registers, records, etc
Every employer is responsible to maintain records and register in the manner as it is prescribed in the
provisions of this Act.
Inspectors
The government by way of notification in the official gazette may appoint a person to be an inspector under the
provision of this Act.
The inspector can enter any premises at a reasonable time and ask for an examination of the accounts. The
employer is legally bound to furnish the information asked by the inspector.
Penalty
If any person contravenes a provision of this Act or fails to comply with any of the directions made under this
Act, it would be punishable for imprisonment which shall extend up to 6 months or fine up to ₹ 1000 or both.
Offences by companies
If any offence is committed under the provisions of this Act and the offence is committed by the company, then
everyone who is in charge of the company or responsible for the affairs of this company would be liable and
could be proceeded against. However, if the offence has been committed while taking all due diligence or the
offence so committed was beyond the knowledge of the person, then such person shall not be punishable under
this Act.

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However, if the offence so committed was in the knowledge of the director, manager, secretary or officer of the
company then such person shall be liable and can be punished accordingly.
Cognizance of offences
No court shall take cognisance of the offence committed under this Act except there is a complaint by or under
the authority of the government or by an officer of the government not below the rank of the regional labour
commissioner or labour commissioner in the central and the state government respectively. Moreover, the court
under which such complaints would be filed shall not below the court of presidency magistrate or magistrate of
the first class.

Protection of action taken under the Act

The government and the government officers are protected from any suit or any other legal proceedings against
them for their actions done in good faith in pursuance of the provision of the given Act.
Special provisions with respect to payment of bonus linked with production or productivity
Under the given Act, the procedure for the computation of the bonus has been delineated, however, in certain
circumstances, the payment of the bonus is linked with the productivity and production of the given employee.
Such an arrangement will take place when there is any settlement or agreement between the employer and the
employee in this regard.
Act not to apply to certain classes of employees
Life Insurance Corporation,
The Indian Red Cross Society or any other institution of a like nature,
Universities and other educational institutions,
Institutions (including hospitals, chambers of commerce and social welfare institutions) established not for
purposes of profit,
Employees employed through contractors on building operations,
Employees employed by the Reserve Bank of India,
The Industrial Finance Corporation of India,
Financial Corporations,
the National Bank for Agriculture and Rural Development,
the Unit Trust of India,
the Industrial Development Bank of India,
Employees of inland water transport establishment passing through another country.
Employees and employers not to be precluded from entering into agreements for grant of bonus under a
different formula
It is provided that the employee and the employers can indulge in any agreement or settlement, for the purpose
of bonus, with a different formula. If any law or rule which renders such agreement or settlement to be null and
void, that law or rule would be inconsistent to that effect.
Effect of laws and agreement inconsistent with the Act

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With regards to the Section 31A of the Act, the provisions of this Act shall apply even if there is an
inconsistency with any other law in force at that time or with respect to any agreement or settlement.

Saving
The provisions of this Act would not be applicable to the Coal Mines, Provident Fund and Bonus Schemes Act,
1948.
Power of exemption
If the central government finds it necessary in the public interest to prevent the application of a certain
provision of this Act in certain establishment or class of establishment then it may, through the notification in
the official gazette, specify the time for which the application of those provisions would be ceased for that
particular establishment or class of establishment

Power to make rules

The central government has the power to make rules with regard to the provisions of this Act. The government
can make rules with respect to the accounting year, maintenance of records and registers, working of the
inspectors under this actor any other matter which may be prescribed. The new rule shall be presented before
each house of the parliament while it is in the session and if both the house have agreed that the rule shall be
applicable or shall be applied will have the same effect accordingly. However, any modification or annulment
made shall not be contrary to the rule previously made
Application of certain laws not barred
Certain enactments like the Industrial Dispute Act, 1947 or any other statutory provision dedicated to the
investigation and settlement of the dispute in the distribution of the be applicable in such cases. The
applicability of the given legislation does not in any way bar the relevancy of other statutes.
Conclusion
The Payment of Bonus Act, 1965 seeks to legally regularise the practice of paying bonus by different
establishment. It offers an objective way to calculate the bonus based on profit and productivity. It enables the
employees to earn over and above their minimum wages or salary. This Act provides different procedures for
different establishments like banking companies, public organisations and also for the establishments which are
not a company or a corporation. Apart from the procedure, this Act also defines a robust redressal mechanism.

Write a short note on object and scope of the maternity benefit act
1961
Or
Write a note on maternity leave under the maternity benefit act 1961

Introduction
In India, the percentage of women engaged in employment is a mere 26.97%. This, in turn, means that 3 out of
every 4 women are not employed, or are not actively seeking any employment activities. In order to fuel female

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participation and engage more women in the workforce, the Centre implemented the Maternity Benefit Act,
1961, in order to ignite the representation of women in the employment sector.
The maternity benefits for women
The Maternity Benefit Act, 1961 [‘Act’] which entails various benefits given to pregnant women employees
and workers, was passed as a way to provide relief to women struggling to balance their work and
household/family duties. In a bird’s-eye view of the total number of women employed in a broad spectrum of
occupational sectors, an increase in the number of employed women mandated the passing of a law that protects
and safeguards the rights of women in terms of their maternity health and childcare. In the era preceding
Independence, an array of women were made to work in mines, do strenuous activities, and work night shifts
while being pregnant, which affected their health and caused prenatal complications. The Act was passed
relieving women of such apprehensions and, in turn, establishing concepts such as maternity leaves with wages,
payment of maternity benefits as defined under Section 3(h) of the Act, nursing breaks, rights against the
deduction of wages, etc., thus implementing a drastic improvement to their conditions. The Act was amended in
2017 on the recommendations of the Indian Labour Commission, thereby, giving additional rights to women
regarding maternity health, which surpassed standards of care given by countries in Europe and Asia regarding
maternity health and benefits.
Rights of the women under the Maternity Act
The Act incorporates the rights and benefits that women are entitled to receive while employed, whether
directly or through any agency, for wages in any establishment.
Employee’s rights
Any woman as an employee of the establishment that she is part of, can exercise her rights under the Act, if she
becomes eligible to do so. Section 4 and 5 delve into the rights that women have as solely being an employee of
an organization.
No work during certain periods: Subpart (1) and (2) of Section 4 inter alia provide that the employer cannot
employ any woman, or engage her in any work if already an employee in such organization, within the duration
of 6 [six] weeks immediately after her delivery date/ miscarriage/ medical termination of the pregnancy.
Exemption from strenuous work: If a woman requests to do so, the employer must, for a certain period of
time, exempt her from engaging in any strenuous, arduous, tiring, or lengthy activity that may affect her
wellbeing and maternity health [Section 4(3)]. Such periods include:
the period of one month immediately before the date of her expected delivery;
any period during the said period of six weeks for which the pregnant woman does not avail of leave of absence
under Section 6 of the Act.
Dismissal during absence: No employer can dismiss, discharge, or fire a woman during the period of absence
as taken in accordance with the provisions of the Act. If she is discharged and dismissed at the time wherein she
would have been applicable for the maternity benefit, such benefit would still be applicable to her. If in case
such an employer does deprive women of the maternity benefit, such women have a remedy, by appealing to a
prescribed authority, whose say in the matter is final. [Section 12]
Overriding Power of Contract: If, in an event that any woman, has signed an agreement/contract or received
an arbitral award, etc., and the provisions for maternity benefit in such agreement/contract/award are more
favourable to her than those which she is entitled to receive in accordance with the Act, then she shall be
entitled to the more favourable benefits under the agreement/contract/award. [Section 27]

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Maternity Benefit: Sections 5, 6, and 7 provide for the right that women have to receive maternity benefit
from their employers. In accordance with Section 5(2), a woman can only claim maternity benefit from an
employer after completing a minimum period of 80 [eighty] days in the employment of the establishment from
whom such benefit is being claimed, in the twelve months immediately preceding the date of her expected
delivery. Such benefit is available to any woman working in the employment of the establishment, irrespective
of the contract she has with the establishment.
This was laid down in Municipal Corporation of Delhi vs. Female Workers (Muster Roll) & Anr. In this case,
the Municipal Corporation of Delhi granted maternity benefits only to the regular female workers, and denied it
to female workers on the muster roll, and not regularised. The Court held that in accordance with Articles
14 and 15 of the Constitution “labour to whichever sector it may belong in a particular region and in a particular
industry will be treated on an equal basis.” (Hindustan Antibiotics Ltd. v. Workmen (1967). Thus, it was held
that all women shall be entitled to receive maternity benefits from the establishment.
Payment of Maternity Benefit: Every woman has the right to be paid maternity benefits from her employer at
the rate of her average daily wage, for the entirety of the period wherein she has remained absent from
employment, by taking leave in accordance to the provisions of the Act.
Time Period for Maternity Benefit: The maximum period for which any woman would be eligible to receive
such maternity benefit shall be 26 [twenty-six] weeks, of which only a maximum of 8 [eight] weeks can be
counted before the date of expected delivery. If a woman has 2 or more surviving children, then the benefit
extends to only a period of 12 [twelve] weeks of which a maximum of 6 [six] weeks can be counted preceding
her delivery date. In calculating the number of days viable to receive maternity benefit, the Act also includes
the holidays as being included in such calculation.
The question of the time period of maternity benefit was brought up in B. Shah vs. Presiding Officer Labour
Court, Coimbatore, and Ors. The issue that arose in court was whether Sundays, being wageless holidays,
should be included in the calculation of the maternity benefit period.
It was held by the Supreme Court that the benefit that was conferred by the Maternity Benefit Act, read
with Article 42 of the Indian Constitution, was directed to help women to not only safeguard her maternity
rights but also preserve her effectiveness as an employee and keep her efficiency level stable. She, therefore,
requires any amount that may become payable to her, in lieu of the medical expenses and wellbeing of the
child. The law makes maternity benefit compulsory so as to help women balance their employment and
reproductive roles efficiently. Thus, the court, in accordance with the rule of beneficial construction, stated that
Sundays would be included in the said period.
In case of death: If a woman dies in the duration of the period of maternity leave as mentioned hereinabove,
the maternity benefit applicable to her shall only be calculated till the date of her death. If the woman dies after
giving birth to the child, and thus resulting in the survival of the child, then the entirety of the maternity benefit
would be payable. If the child dies during the period when maternity benefit is applicable to the mother, then
the employer is expected to pay such maternity benefit applicable up to the date of the child’s death. Such
payments after the death of the woman shall be made to the person nominated by the woman in the notice given
under Section 6 (1) of the Act, and, in case there is no such nominee, to her legal representative.
Method to claim maternity benefit: In order to be applicable to claim such maternity benefit as provided for
under this Act, any woman looking to access this right has to submit a notice to her employer in accordance
with the form prescribed by the establishment she is employed with. Such notice should consist of the
following:
The maternity benefit and any other amount she might be entitled to under this Act;
The name of the person to whom such amounts should be paid;

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A confirmation that she will not work in the establishment in the duration of receiving such maternity benefits;
The date of commencement of her absence from employment.
The employer is to pay such maternity benefit to the woman in advance, after the production of evidence from
the woman stating she is pregnant.
Failure to provide notice: The Act gives another right to women that condones the failure to provide such
aforesaid notice. Such failure does not exempt a woman from receiving the benefit but provides that the order
by an inspector after reviewing an application for the payment of the benefit can make the woman eligible for
the payment of maternity benefit.
Wages
As stated in Section 5 of the Act, the women claiming maternity benefits are to be paid their ‘average daily
wages’ in the duration of their absence. Such ‘wages’ constitute varied amounts that are further detailed
under Section 3(n) of the Act. Such wages include the cash allowances/income a woman is entitled to, at the
prevailing time, dearness allowances, house-rent allowances, incentives/bonuses, the concession of food and
other articles provided by the employer.
Right against the deduction of wages: An employer cannot deduct the wage of a woman employee entitled to
maternity benefit by reason of the nature of work assigned to her, breaks taken to nurse her child, or any other
reason attributed to her maternal and post-delivery health/status.
Leaves
The provisions regarding the right to maternity leaves are entailed under Sections 9, 9A, and 10. These
provisions, in turn, provide for the following conditions circling the right to maternity leaves.
Right to leave in case of miscarriage/abortion: A woman who has suffered a miscarriage or underwent the
medical termination of her pregnancy has a right to ask for a paid leave at the rate of maternity benefit, on the
production of evidence of such happening for a period of 6 [six] weeks immediately after the day of such
happening.
Right to Leave in case of a Tubectomy: A woman who has undergone a tubectomy operation has a right to ask
for a paid leave at the rate of maternity benefit, on the production of evidence of such happening, for a period of
2 [two] weeks immediately after the day of such operation.
Right to Leave for illness arising out of pregnancy: A woman suffering from any illness arising out of
pregnancy, delivery, premature birth of a child, miscarriage, medical termination of pregnancy or a tubectomy
shall have the right to ask for a paid leave at the rate of maternity benefit, in addition to the period of authorized
absence already provided under Section 5 and 6, in accordance with the provisions of this Act, on the
production of proof of such illness.

Other benefits
In addition to the benefits and rights as mentioned above, the Act also provides for some miscellaneous benefits
to women, to further help in the safeguarding and well being of her maternity health and status.
Maternity Benefit and Adopted Children: If a woman legally adopts a child below the age of 3 [three] months,
or is a commissioning mother [added as Section 3 (b)(a) by the Maternity Benefit (Amendment) Act, 2017], she
is entitled to maternity benefit for a period of 12 [twelve] weeks from the date the child is handed over to her.
[Section 5(4)]

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Work From Home: The women entitled to maternity benefit under this Act have the provision of undertaking
the work of the establishment at their own homes if the nature of work allows them to do so and the employer
consents to the same. [Section 5(5)]
Nursing Breaks: After the period of maternity benefit has concluded when the woman commences her
employment again, in addition to the break timings given to her, she has a right to receive two breaks in the
course of the day that are prescribed for the nursing of her child, for a set period of time until her child reaches
the age of 15 [fifteen] months. [Section 11]
Crèche facility: In furtherance of the rights provided, the women also have access to the provision of a crèche
facility four times a day including the break timings given to her, if the employment establishment falls within
the category that mandates the provision of a crèche facility. [Section 11 A]
Medical Bonus: A woman entitled to maternity benefit from an employer, is also entitled to a medical bonus
from such an employer consisting of Rs. 1000/- [Rupees One Thousand Only] in an event that no prenatal or
postnatal care is provided by such an employer for free. [Section 8]
Applicability of the Act
The applicability of the Act can be understood in a two-part sense, i.e. the applicability to an establishment, and
the applicability to a woman claiming such benefit under the Act. The establishments which are bound to abide
by the guidelines of the Act are:
 Mines;
 Factories;
 Plantations;
 Establishments displaying acrobatic and other performances;
 Shops and/or establishments as defined under the Shops and Establishments Act of the state;
 Any such establishments having 10 [ten] or more people who are, or were employed within it in the preceding
12 [twelve] months;
 Any other establishment, as may be notified by the Central/State Government to be included under the ambit,
vide an official gazette.
All such establishments are required to follow its duties as laid down under the Act. These establishments thus
fall under the ambit of ‘applicability’ vis-a-vis the provisions of the Act. It, however, does not apply to any
other factory, wherein other maternity benefit laws apply, such as the Employees State Insurance Act, 1948.
Another feature that corresponds with the applicability of the Act, is the category of women who can claim
such benefits under the Act. In accordance with Section 5(2) of the Act, any woman who has been employed
for a continuous period of 80 [eighty] days in the 12 [twelve] months immediately preceding her date of
delivery with the establishment from which she is seeking such benefit, is entitled to receive the benefit. Any
and all women falling under this category are provisioned to claim maternity benefit from their employer as
under this Act, irrespective of the type of contract she may have with such establishment.
Additionally, Sections 5A and 5B of the Act also lay down certain inclusive provisions for women seeking this
benefit. Section 5A provides for the continuance of maternity benefit to a woman irrespective of the application
of the Employees State Insurance Act, 1948 until she becomes qualified to be entitled to maternity benefit as
stipulated under Section 50 of the 1948 Act.
Section 5B states that a woman is applicable to receive benefits under the act if employed with a factory to
which the 1948 Act applies, whose wages per month exceed the provisions under Section 2(9)b of the 1948
Act, and who fulfils any other condition mentioned in that Act.
The obligation of the States

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The foundations of duties and responsibilities of the government are enshrined in the Constitution of India. It
holds paramount importance and is regarded as the backbone of any other legislation prevailing in our country
today.
Article 42 of the constitution provides for the just and humane conditions of work and maternity relief. It states
that the State shall make provisions for securing just and humane conditions of work and for maternity relief.
Thus, the responsibility of ensuring maternity rights to the citizens lies in the hands of the State. As a general
practice, the Centre issues central legislation with powers given to the States to amend and constitute rules for
the same in the respective territories, and such is the practice for the Maternity Benefit Act, 1961 as well.
Therefore, the Government of India, as well as the State Governments, becomes liable and responsible to
protect maternity rights of women in the country. In order to affect the employment of women in myriad sectors
of employment in periods before and after childbirth, the Parliament passed the Maternity Benefit Act, 1961.
This was done with an objective to reduce gender inequality, discrimination, unfair practices, and other
maladies that existed due to gender disparity in the country. It is the State’s obligation to manoeuvre the laws in
a manner so as to improve the conditions of the citizens and protect their health and well being. In pursuance of
this duty, the State passed the Act, to regulate the participation of women in the working sector.
Before the Act, the Bombay Government passed the Maternity Benefit Act of 1929 in a response to the Trade
Union movement, which compelled them to make security laws for women labourers to improve their working
conditions during pregnancy.
The increasing understanding of the obligation of the State in assuring maternity benefits was established in the
case of . Mrs. Bharti Gupta vs. Rail India Technical and Economical Services Ltd. [RITES] and others In this
case, the Court held that the nature and provisions of benefits for women during and after childbirth had been
laid down in the Act. The Act is a social and benevolent law and because of its objective, it had to include the
establishments of RITES as falling within its purview. RITES is an instrument of the State, as laid down
by Article 12 of the Constitution and is thus, under the ambit of Part 3 of the Constitution. Thus, RITES had to
follow the provisions of the Act and did not have any leverage to be exempted from such duties.
The concepts of maternity rights and gender equality, as we see today, have stemmed from various international
human rights legislation and treaties such as the International Covenant on Economic, Social and Cultural
Rights of 1996. The International Labour Organization on many occasions has highlighted the importance of
extending maternity protection and promoting a balance in the work and personal life of the women. In
response to the 1975 seating and the 2004 seating of the ILO, the Indian Parliament amended the preexisting
Maternity Benefit Act in 2017, to make it more inclusive and at par with international standards.
Compliance requirements for employers
In light of the provisions laid down in the Act, the employer has certain duties and compliances to accord to,
regarding the maintenance of the wellbeing of the establishment as well as of the women workers employed
therein. The employer must follow the prescribed conditions in order to do so. These include:
Challenges for employers
In contrast to situations in other nations, India is considered to be disadvantageous on the part of the employers’
obligations. This is because the prevailing legislation on maternity benefits, that is the Maternity Benefit Act,
1961, puts the burden of payment of wages, to the women claiming maternity benefit, completely on the
employers. In most other countries, such financial burden is shared by the employer and the state, however,
this, unfortunately, is not the method India decided to adopt. This indirectly leads to the reduced employment of
women in many establishments. This transverse reaction stems from the fact that since companies and
establishments have to pay for maternity benefit themselves without any state aid, the profit to loss ratio would
indicate that hiring male counterparts would ineffectually be more feasible, than making extra payments for

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women under such Act. Thus, this challenge to employers is a challenge for women seeking employment as
well.
In an attempt to improve such conditions, the government, as stated here below, has drafted a scheme called
the Maternity Leave Incentive Scheme, 2018, in order to assist the employers in providing maternity benefit to
the women workers.
Additionally, many SMEs (Small and Medium Enterprises) cannot practically afford a six to nine-week leave
that they are obligated to grant their employees, as this would adversely affect the growth of the company; and
hiring cheap temporary workers to fill in the vacancy caused due to availing maternity benefits also becomes
unaffordable.
The employers could also face the challenge of women misusing the provisions of the Act for their own benefit,
by availing the maternity benefits and leaving the said employment immediately after the period for maternity
benefit has passed, thus, causing a great waste of resources for the employer.
Further, many difficulties in establishing creches for women and their children also arise due to matching
standards of quality of the creche, as well as establishing one in a convenient location.
These, along with myriad other moral and legal challenges faced by the employer, make it difficult to comply
with and be legally correct in carrying out the provisions of this Act.
Alternative laws that provide maternity benefits in India
In addition to the provisions of the Maternity Benefits Act, 1861, there are many legislations that contain
provisions regarding maternity benefit and health. These legislations, though not centrally focused on
prescribing rights to women during and after pregnancy, contain particular sections that give an insight into the
same in the context of the legislation.
The Employees State Insurance Act, 1948, is one such legislation that acts in correspondence with the
Maternity Benefits Act and helps in safeguarding the health of women. This Act, in Section 46 (1) (b) provides
for periodical payments given to a woman employee insured under this Act in an event of miscarriage, sickness,
operations, etc. arising out of pregnancy/premature birth/miscarriage, etc. Section 56(3) of this Act provides for
medical benefits to a woman who is qualified to claim maternity benefit from the employer. It also provides for
the establishment of organizations by the State and Central Government that provide certain benefits to
employees in case of sickness or maternity. Similar to the Maternity Benefit Act, this Act also provides for the
right against dismissal, punishment, and discharge of an employee by the employer during the period of her
absence from employment due to illness arising from pregnancy, thus, rendering the employee unfit to work.
The Maternity Benefit (Mines And Circus) Rules, 1961 is another prevailing legislation that is an offshoot of
the Maternity Benefit Act and prescribes various procedures and compliances to be followed by employers of
such establishments while dealing with maternity health. It provides for the establishment of creches, maternity
leave, muster rolls, breaks for nursing a child, payment of maternity benefit, etc. It is mainly directed, as its
namesake, to the women working in mines or circuses.
Another legislation that consists of a maternity safeguarding clause is the Central Civil Services Rules of 1972.
These rules, which are applicable to government servants working in the Civil Service, consist of a structured
and detailed clause on Maternity Leave. It provides for maternity leave of 135 days to the female government
servants, in the duration of which, she is paid the leave salary which is equal to the pay while working in the
service. It also provides for a maternity leave not exceeding 45 days in an event of a miscarriage.
The Mines Act, 1952 provides for a maternity leave clause for any number of days not exceeding twelve weeks,
for women who take part in the management, control, supervision or direction of a mine or of any part thereof.

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The Factories Act, 1948 has a similar provision regarding maternity leave, which provides for maternity leave
for any number of days not exceeding twelve weeks, for women who work in a factory. Further, the Act also
contains a provision that makes it compulsory for the Factories that employ more than 30 [thirty] women, to
maintain a suitable room for the use by the children of such women, who are under the age of 6 [six] years.
Further, the Plantations Labour Act, 1951 also provides for the facilities of maternity benefits and creches for
women who work on plantation fields. It states that any plantation having employed more than 50 [fifty]
women, is mandated to provide a facility for the children of such women to use until the age of 6 [six] years.
The act entails that every woman is entitled to obtain a maternity allowance by the employer at the prescribed
rate.
Additionally, in an attempt to tackle the above-mentioned problem, the Government, in 2018, proposed a
Scheme called the Maternity Leave Incentive Scheme, 2018 which provided for the reimbursement of 7 [seven]
week’s wages to the employers who employ women workers and provide maternity benefit to them for 26
weeks of paid leave. However, this scheme is still currently in the draft stage and requires due consultation and
approval to become a full-fledged plan to increase the percentage of women workers and employees in India.
Conclusion
The Maternity Benefit Act, 1961 as well as the Amendment of 2017, have proved to be a boon, as well as a
bane to the country and its economy. However, the Government has played its part in matching international
standards of maternity rights via these legislations so that the gender neutrality and efficiency of work is
maintained in the country. It properly safeguards the rights of women and maternity and provides for the basic
foundations of health and safety.

Scope and Nature of Maternity Benefit Laws

Maternity as the name suggests is the benefit that every women is entitled to get as a payment which is payable
to her by the employer in her actual absence during the course of employment.
Women all across the world have lots of responsibilities and have to go through certain things like pregnancy,
childhood, menstruation etc. It may happen that she has to quit her job to take care of other things. Maternity
Benefit Laws are thus made to help such women so that they can continue to work and reap the benefits which
in turn will create a harmonious environment in the organisation.
The first maternity benefit legislation was made by the State of Bombay in the year 1929. After this several
other states made similar laws and soon a need was felt to make a central legislation for women and then
‘Maternity Benefit Act 1961’ came into existence so that divergence between the different Acts can be reduced.
Maternity Benefit Act 2017
The main objective of the Act is regulating the employment of women employees in different establishments
for a fixed period and provide maternity and different other benefits. The Act is an initiative taken by the
government for the security of the women and in a way encouraging the women to work and to help her in
taking care of her child. In 2016 a bill was passed in Rajya Sabha and the bill was passed and the ‘Maternity
Benefit Act 2017 came into effect from 1st April 2017 which further proved to be a boon for the mothers.
Applicability of the Act:
The Act is applicable to all the organisations like –factories, mines, and any private or governmental
organisation.

Salient Features of the Act:

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 -The Act applies to all the women who are employed either directly or indirectly (i.e- by a contractor or an
agent), or is working in full term employment or in contractual basis.
 -Section 12 of the Act makes it unlawful if any employer dismisses any women employer during her pregnancy.
In the case of any grave misconduct by the employee he can take the mandatory steps as per the guidelines and
policies of the company.
 -In the previous Act the period of maternity leave was for 12 weeks but after the amendment the period of the
maternity leave is increased from12 weeks to 26 weeks for 2 children however for women having more than 2
children the leave is for 12 weeks only.
 -For those women who adopts a child below the age of 3 months the maternity leave is for 12 weeks the date of
which shall be counted from the day the child is handed to the women.
 -Women may or may not choose to work from home (in private organisations) depending upon the consent of
the employer and the nature of the work after the expiry of 26 weeks.
– It is mandatory as per the act for the establishments having more than 50 employees to have crèches within a
defined distance. The amended act allows a women- employee to visit the crèches 4 times a day that includes
the regular rest intervals.
 -Under the Act it is obligatory for the employer to inform the employees the maternity benefit rules and laws in
writing at the time of their appointment.
Objectives and need for Maternity Benefit Laws in India
The most foundational purpose of the maternity benefit laws is protecting the dignity of motherhood and
Mothers, safeguard her and her child’s health. Motherhood is the most beautiful time in any women’s life and
it’s her right to enjoy it and give proper care to her child having no worries related to security of her job.
Further the ratio of working women in the urban sector has increased remarkably and there is a need to make a
gender friendly labour market providing a propitious and an encouraging environment and thus it was natural to
protect the women in her maternity seeing a large number of female employees.

Maternity Benefit Laws under Indian Constitution

There are several laws under the constitution of India that safeguard and protect the rights of women. Under
Article 14 –equality of the sex is stipulated, whereas Article 15 provides for equality in employment, Article
39(a) mandates equal pay for equal work Article 42 stipulates- right to just and humane conditions of work and
maternity relief which is a DPSP and under the same under Article 46 it is stated that state should make rules
for improvement in employment opportunities and conditions of the working women.
Article 15(3) gives the government the power to make special laws for the women and under which it passed
the ‘Maternity benefit Act’.
Apart from this ‘Indian Labour Organisation’ have made certain standards on maternity benefits where the
fundamental concern is to provide social and economical security to the women employees and ensure that no
risk is posed to her and her child in any way.

The stance of the Indian Judiciary related to the maternity Laws in India
Municipal Corporation of Delhi v. Female Workers[1]: It was held by the court that it is unlawful to impel a
women employee to do heavy work during her advanced pregnancy as it can be deleterious for both the foetus
and the mother.

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Air India v. Nergesh Meerza[2] : Under the termination and retirement policy of Air India Corporation (AIC)
one of the mandatory conditions was that – on the first pregnancy the women employee will be terminated
which was held to be violative of Article 14,15 and 16 of the Constitution Of India.
Shah vs. Presiding Officer, Labour Court, Coimbatore and others[3]: The question before the court was that
whether Sundays are to be included in calculating the maternity benefits of the women. The court held that- In
order to enable the woman worker to subsist during this period and to preserve her health, the law makes a
provision for maternity benefit so that the woman can play her productive and reproductive roles efficiently.
Conclusion
Indian Government along with Indian Judiciary has always worked for the furtherance of the women and proper
analysis of the Maternity Benefit Act and judicial sensitivity toward this notion, it is quite clear that the Act is
an appendage for the women. The Act has increased the reliance of the women both towards the organisation
they are working for and the government. The act has provided a social and economical palisade for women
employees and has created a stable environment for the women so that they can contribute their best for the
organisation.

The Unorganized Workers Social Security Act, 2008

and
Social Security Coverage Scheme for Workers in Unorganised Sector
The unorganised worker's social security Act was enacted by the parliament of India in 2008 by president's
assent. It is implemented by the Ministry of Labour and Employment. worker's sector. Recently, the honorary
Supreme Court dismissed the PIL filed by Shri R Subramanian which was seeking directions to compensate the
financial loss of the workers employed in the unorganised sector.
The persistence of Covid-19 pandemic has expedited the misery of India's working population. It came to light
that more than 90% of the Indian population is employed in the unorganised sector and they neither have access
to social security nor minimum wages despite them contributing an approximate of 60% to the Indian GDP.
Salient Features:
The Act mentions about constitution of a National Social Security board and State Social Security Board which
will give recommendation for formulation of suitable schemes which later shall be monitored and reviewed.
In Rajan Kudumbathil v. Union of India on 12 November 2009, the Kerala government was directed to
immediately constitute the State Social Security Board as it was not established post the enactment of the act.
The UWSS Act has laid down provisions wherein it registers and issues a smart identity card with a unique
number to the unorganised sector worker.
The Record Keeping function will be performed by the District Administration.
The Workers Facilitation Centres will disseminate the available data on the social security schemes, facilitate
the filing-processing and forwarding of the registration application with the assistance of the district
administrator.
The act in its Schedule I has laid down a list of the Social Security Schemes to ensure that the workers of the
unorganised sector meet their basic needs and that they have a decent standard of living.
Objective And Purpose

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The UWSS Act 2008 was implemented with the objective to ensure social security, good wellbeing and to
protect the unorganised sector workers from several contingencies.
The importance of the act came to light in 2012 in National Domestic Workers Welf. v. State of Jharkhand &
Ors. wherein it was highlighted that the current labour laws in force such as the Industrial Disputes Act, the
Minimum Wages Act, Maternity Benefit Act, the Workmen's Compensation Act, Factories Act, etc. are
applicable to a restricted number of workers.
In India, the social security laws have derived their basis from Part IV of the Directive Principles of State
Policy (DPSP). The Social security and Labour Laws form a part of the concurrent list therefore both, the
Central and the State Governments are approved to make laws for the same. It is the obligation of the state to
lay down provisions which grant social security to organised as well as unorganised sector workers.
Another purpose of the act is to ensure that the needs of the workers employed in the unorganised sector are
addressed as it contributes to the sustainable economic growth in the country. Apart from Social security the
needs include availability of credit, upskilling, use of modern technology, infrastructure and the requirement of
a contractual obligation between the employer and employee.
Progress Made Under IT
The Social Security Schemes and Acts mentioned in the Schedule I and II of the UWSS, 2008 are run by
several different ministries. For instance, the Medical care is been taken care by the Ministry of Health, Food
Security by Ministry for Agriculture etc. The budget allocation for the same is done by different ministries
creating a problem of multipliciy of benefits availed and suggests a formation of a ministry of social security.
The National Social Assistance Programme which comprises of Indira Gandhi National Old Age Pension
Scheme under the UWSS has 4,02,56,984 people as beneficiaries as of 14th June 2020. As an extension to the
act, a National Social Security Fund (NSSF) was constituted for unorganised workers in 2010 with an initial
funding of INR 1,000 crore.
Several schemes under the Act depend on State-level nodal agencies for functioning of its Schemes and in
times like the national health crisis these labour laws and policies not only provide social security for the
workers but help the economy from deteriorating. Recently, the state of Uttar Pradesh promulgated Uttar
Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020 which shall suspend a majority of
the acts and schemes under UWSS for a period of three years.
The Covid-19 pandemic has highlighted the need for additional legal safeguards and welfare measures for the
unorganised workers especially the migrant workers and domestic workers as they are in dire need of social
security more than ever.
Critical Analysis
The UWSS Act is a significant initiative taken by the government to address and provide remedy to the plight
of the workers engaged in unorganised sector for the first time, the act has also enlisted several welfare schemes
which can be availed by the workers.
There are certain inadequacies in the act which complicates the implementation process at the same time
infringes rights of the unorganised workers. The scope of the definition of unorganised workers is narrow
and excludes forest and fish workers, domestic workers, cross-border provisional workers, and aanganwadi
workers etc.
It is important to note that, the act has not defined the term social security and hence it is not justiciable. The
act has laid down several social security schemes but has not included them within the body of the act.

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The Social Security (Minimum Standards) Convention, 1952 established a globally accepted minimum standard
social security benefit which covers the nine branches of social security namely medical care, sickness,
unemployment, old-age, employment injury, family, maternity, invalidity and survivor's benefit. Yet, the
UWSS fails to provide for any minimum social security to its unorganised workers.
The act places the unorganised workers in an odd position as, if they fail to make the deposits in time, they are
disentitled from the benefits without considering the contingencies that come along which renders the process
of contribution complicated.

Recommendations:
The term social Security should be explicitly defined to make it enforceable in court of law.
Currently, the act is only applicable to unorganised workers who are below poverty line and hence, should be
made inclusive of all the unorganised workers which will fulfil the purpose of the act.
A chapter on dispute resolution needs should be appended to the Act to make sure workers can file complaints
about violations and seek remedy.
An amendment should be made to add minimum social security benefits for the unorganised workers based
on ILO standards.
Create a comprehensive database of unorganised workers working in sectors not covered by the act to provide
them visibility.
Conclusion
Social security is an important part of the development at all the levels of the existent society and leads it
towards a better social and economic growth. To enable these workers to gain maximum benefit from the
schemes an effort must be to make them aware of their rights.
The lack of proper implementation and standard checks have made the schemes to remain on the papers as
evidently, In the light of the current pandemic and suspension of labour laws in few states poses a grave
question, whether India acknowledges the importance of the unorganised workers in the country?

Social Security Coverage Scheme for Workers in Unorganised Sector

In order to provide social security benefits to the workers in the unorganised sector, the Government has
enacted the Unorganised Workers Social Security Act, 2008. The 2008 Act stipulates formulation of suitable
welfare schemes for unorganised workers on matters relating to: (i) life and disability cover, (ii) health and
maternity benefits, (iii) old age protection and (iv) any other benefit as may be determined by the Central
Government through the National Social Security Board. Various Schemes, formulated by the Government to
provide social security cover to the unorganized worker, listed in the Schedule I of the above Act are as under:
i. Indira Gandhi National Old Age Pension Scheme. (Ministry of Rural Development.
ii. National Family Benefit Scheme. (Ministry of Rural Development)
iii. Janani Suraksha Yojana. (Ministry of Health and Family Welfare)
iv. Handloom Weavers Comprehensive Welfare Scheme. (Ministry of Textiles)
v. Handicraft Artisans Comprehensive Welfare Scheme. (Ministry of Textiles)
vi. Pension to Master Craft Persons. (Ministry of Textiles)

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vii. National Scheme for Welfare of Fishermen and Training and Extension. (Department of Animal
Husbandry, Dairying & Fisheries)
viii. Aam Admi Bima Yojana. (Department of Financial Services)
ix. Rashtriya Swasthya Bima Yojana. (Ministry of Health and Family Welfare)
Central Government has also launched following three schemes for all citizen targeting unorganised workers to
provide them comprehensive social security.
(i) Atal Pension Yojna (APY): Under the APY, subscribers would receive a fixed minimum pension at the age
of 60 years, depending on their contributions, which itself would vary on the age of joining the APY. The
Central Government would also co-contribute 50 percent of the total contribution or Rs. 1000 per annum,
whichever is lower, to each eligible subscriber account, for a period of 5 years, who are not members of any
statutory social security scheme and who are not Income Tax payers. The pension would also be available to
the spouse on the death of the subscriber and thereafter, the pension corpus would be returned to the nominee.
The minimum age of joining APY is 18 years and maximum age is 40 years. The benefit of fixed minimum
pension would be guaranteed by the Government.
(ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Under PMJJBY, life insurance of Rs. 2 lakh would
be available on the payment of premium of Rs. 330 per annum by the subscribers. The PMJJBY will be made
available to people in the age group of 18 to 50 years having a bank account from where the premium would be
collected through the facility of "auto-debit".
(iii) Pradhan Mantri Suraksha Bima Yojana (PMSBY): Under PMSBY, the risk coverage will be Rs. 2 lakh for
accidental death and full disability and Rs. 1 lakh for partial disability on the payment of premium of Rs. 12 per
annum. The Scheme will be available to people in the age group 18 to 70 years with a bank account, from
where the premium would be collected through the facility of "auto-debit".

explain the registration procedure and authorities under the

karnataka shops and commercial establishments act 1961

Karnataka Shop and Establishment Act

In July 2020, the Karnataka Government announced that they are thinking about the removal of surprise
inspections under 12 Acts, including the Shops & Establishment Act of 1965. This is said to improve the ‘ease
of doing business’ rankings for the State.
The Karnataka Shops And Commercial Establishments Act, 1961 is one of the state labour laws enforced by the
Department of Labour. This act is valid all over the state of Karnataka from the date notified by the state
government. This act provides regulations and other guidelines for work and employment in Shops and
Commercial establishments inside the state of Karnataka.
According to this act, the “Commercial Establishment” means
Commercial
Trading
Banking
Insurance Company

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An Establishment or Administrative services.

If you’re just looking around for related information on startups, government registrations, tax or legal
documentation, check out the list of services we provide to make your interaction with government as smooth
as is possible by doing all the legal documentation for you. We will also give you absolute clarity on the
process to set realistic expectations.
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A person where he/she is employed mainly in office work, a hotel, a restaurant, boarding, a café or other
refreshment places
A theatre or any other public amusement or entertainment.
6. The State government can also declare a specific space as a commercial establishment for this Act.
Shops mean any premises or location where the business or trade is carried on where service is provided to the
consumers. It includes offices, storerooms, godowns, warehouses, etc. It can be on the same premises or
otherwise. But, this explanation does not include a commercial or shop attached to the factory where the
employee comes under the scope of the Factories Act, 1948.

What are all the business exempt from the shop & establishment Act?
As per the act, the “exemption” means the businesses which have nothing to do with this act.
Offices of Central and State Government or local authorities.
Postal, railway, Telephone, water transport services
Offices of a banking Company
Railway Dining Cars
A place to treatment or care for the sick or people who is mentally unfit.
Establishment of Food Corporation of India (FCI)
Offices of a banking
Offices of legal and medical operations where only three persons are employed
A shop mainly in medicines, surgical requisites or appliances.
A person directly engaged in a clerk job responsible for the despatch of goods.
What are the features of the Karnataka Shop and Commercial Establishment Act?
Issuing Registration Certificate
Renewal of Registration Certificate
Facilitating changes in Registration Certificate
Issuing Duplicate Registration Certificate
Annual Returns Filing

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Exemption or relief weekly holidays

Exemption for Women working in Night Shifts
Appeal submission
Duties of the owner:
 Registration of the organisation
 Weekly Holiday for the Establishment
 Fixing Working Hours
 Employment and Regulation
 Records Management
How to register an establishment under this act?
For registration and renewal of establishment under the Karnataka Shop and Commercial Establishment Act,
1961 entrepreneurs can avail the e-Karmika online facility.
In case of a new registration, you should register the organisation within 30 days from the date of
commencement of business.
In case of an existing organisation, you should register the organisation from the date on which this Act comes
into force.
The registration certificate is valid for five years and it should be renewed before the expiry date by paying fees
and in the manner prescribed.
The business owner should display the registration certificate in a place where everyone can see inside the
office premises.
If you plan to change any information, such change should be notified in the prescribed format to the
registration authority.
After closing the business establishment, the owner should submit the registration certificate to the authority.
What are the documents to be uploaded?
Address proof on the owner (Aadhaar Card/ Voter ID/ Driving License)
Incorporation Certificate/MoA (In case of Private Limited Company)
Self-attested letter from the Owner/Authorisation letter from the Authority.
Payment Receipt or Challan
Registration form signed by the owner

What is the fee for new registration?

No. of Employees
Fee (Rupees)
Nil Employee300One to Nine600Ten to Nineteen4000Twenty to Forty-nine10000Fifty to Ninety-
nine20000Hundred to Two hundred and fifty40000Two hundred and Fifty-one to Five hundred50000Five
hundred and one to One thousand70000Above a thousand75000

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Weekly Holiday for the Establishment

An establishment must remain closed for one day of the week. The owner of the establishment has to fix such a
day at the beginning of the year and the same should be informed to the registration authority.
However, certain establishments are exempted from weekly holidays. Here are some of the establishments.
Clubs, Hotels, School and College Hostels, Residential schools.
Hair Cutting Saloon
Copper, Container, Manufacturing Firms.
Selling Petrol and Diesel
Daily Newspaper & Weekly Magazines
Cinema halls, theatres and other recreational centres.
Medicine and Medical Equipment sellers
Organisations performing research/study on infectious diseases.

Working hours:
Any Business or establishment within the prescribed working hours. In other words, any establishment shall not
before and after the following hours.
Bangalore City – Before 6 am and Night after 9 pm.
Other location: Before 8 am and after 8 pm.

Prohibition and Exemption:

Children under 14 years of age are prohibited to work in any establishment. No women shall be required or
allowed to work in any establishment after 8 PM.
However, Information Technology/ Business Technology organisation can get permission to work after 8 PM
(Form R).

Employment and Regulation:

Any employee who has completed 180 days or 6 months of service cannot be dismissed without prior notice.
Working time-period of any employee should not exceed 48 hours and 58 hours including extra working hours.
Employee attendance should be maintained in Form T.
Salary should be credited to every employee before the 7th of next month.

Forms & Records:

Form A:
Registration, Renewal and Report Change of information of establishment.

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Form P:
Fixing different days for weekly holidays.
Form F & Form H:
Maintaining employee leave a record (Form F) and share a copy to the employee (Form H)
Form T:
Employee daily attendance.
Form R:
Permission to allow women to work after 8 PM.
Form U:
Annual Report for the year ending with 31st December shall be submitted before 31st January of next year.
The act will be implemented under the supervision of labour commissioner – Chief Inspector.
Inspector and Senior Inspector – Inspector and department level authorities are called as Additional Inspector.
The government PDF of Shop and Establishment is available below. You can check this out.
When can the taxpayer claim refund from electronic cash ledger?
If the taxpayer has paid excess amount by mistake, they can request for refund from the electronic cash
[Link] the procedure for GST registration and GST returns here.
How do banks assess the working capital requirements of borrowers?
Methods such as cash flow mismatch are used by banks to assess the capital requirements that the borrowers
seek from [Link] on Income Tax Return Filing.

What does the Aadhaar number have to do with filing of tax returns?
Aadhar card is mandatory for tax payers in India. Non-resident Indians, people aged more than 80 years are
exempt from providing Aadhar card when applying for PAN card. Learn more about Aadhar Certification.

What is the purpose of ISO standards?

ISO international standards checks whether the services and products remain reliable, good quality and safe.
There are certain tools that helps in increasing productivity. More info on ISO Registration in india.
What is the benefit of ngo?
An NGO has a major role in resolving the issues of the underprivileged by using financial assistance received
from the Government or foreign [Link] about NGO Registration.

Write a note on objectives of special economic zones act 2005.

The special economic zones act 2005 has been enacted with the major objective of

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 generation of additional economic activity

 Promotion of exports of Good's and services
 Promotion of investment from domestic
 and foreign sources.
 Creation of employment opportunities
 Development of infrastructure facilities

Recently, Kakinada Special Economic Zone (KSEZ) was in the news when GMR Infrastructure, India's largest
and amongst the world's top 5 private airport developers who own and operate Delhi and Hyderabad
International Airports sold its entire stake of 51% in KSEZ to Aurobindo Realty and Infrastructure for INR
2,719 crore. But what exactly a Special Economic Zone is? How is it different from the rest of the economic
areas? By whom is it developed and how? Let's answer all these questions in this article.
What is a Special Economic Zone?
Special Economic Zones (SEZs) can be defined as a special jurisdiction within a country made to facilitate
foreign trade. As per Section 53(1) of the Special Economic Zones Act, 2005 (SEZ Act), SEZs are deemed as
foreign jurisdictions for the purpose of trade operations and taxes. Within SEZs, businesses are provided heavy
tax exemptions, advanced infrastructure, minimal regulations and lucrative fiscal packages to boost the
country's economy through foreign trade. Many countries including Russia, the Philippines, Jordan, Poland,
North Korea, China have SEZs.
The concept of SEZs in India was officially introduced on 1st April 2000 as a part of the Export-Import Policy
and was cemented by the commencement of the Special Economic Zones Act, 2005. Before this Act, the SEZ
policy was implemented via amendments in various statutes and executive orders, which was causing an
alarming hindrance in the path of Foreign Direct Investment (FDI) to India. Presently, SEZs are governed by
the SEZ Authority under the Department of Commerce, Ministry of Trade and Commerce.

Why are SEZs developed?

The core objectives of the Special Economic Zones Act, 2005 (primary statute concerning the formation and
governance of SEZs) are as follow:
 Driving more economic activities;
 To further the export of commodities;
 To draw investments from foreign and domestic investors;
 To generate employment in the country;

For infrastructural development.

SEZs provide a conducive environment to local enterprises for business growth and expansion in order to make
them compete on an international scale. Further, SEZs can be set up even by the private sector and foreign
investors, making them drivers of public-private partnership to bolster infrastructure in the country.
SEZs can do wonders for an economy. For example: According to the World Bank, in recent years in China,
SEZs have made a total 22% contribution to the GDP, 45% of total national FDI and 60% of exports. These
Chinese SEZs have generated approximately 30M+ jobs, catapulted participating farmers' income by 30% and
bolstered industrialization, urbanization, modernization and even agriculture in China.

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Who all can develop SEZs?

According to Section 3 of the SEZ Act private entities/individuals, State Governments and Central Government
can establish SEZs either jointly or separately for manufacturing, providing services or for establishing Free
Trade and Warehousing Zone (FTWZs) that are defined in Section 2(n) of the SEZ Act.
What are the incentives and facilities offered in SEZs?
Businesses are provided multiple incentives and facilities under SEZs to attract domestic as well as foreign
investments there.
These incentives/facilities are as follow:
Benefits to SEZs' Developers
 Under Section 80-IAB of the Income Tax Act, 1961(ITA), there is a complete exemption from Income Tax on
the income generated via the business by the developers of the SEZs (for a span of 10 years out of the first 15
years from the date of notification of that SEZ by the Central Government
 Under Section 115JB of ITA no Minimum Alternate Tax (MAT);
 Imports and domestic procurement of goods for the purpose SEZ businesses are zero-rated under Integrated
Good and Services Tax Act, 2017;
 A Single Window Clearance system for all the required permissions from the Central and the State government;
 No custom tax(s) and excise duties for SEZs' development for particular operations to be approved by the
Board of Approval (BOA) of Special Economic Zones;
 Under Section 115-O of ITA, SEZ businesses are exempted from the Dividend Distribution Tax.
 Direct coordination with customs officer to ease and expedite the trade processes;

Benefits to businesses situated in SEZ

Under Section 10AA of the Income Tax Act, 1961 for the first five years there is zero Income Tax on export
income for SEZ businesses. Thereafter, merely 50% for the subsequent five years and 50% of the ploughed
back export profit for subsequent five years.
Under the aforementioned Section, losses that are related to business and are mentioned under the heading of
Profits and Gains from Businesses/Profession and Income from Capital Gains can be carried forward to
subsequent years.
Exempted from the Securities Transaction Tax applicable on taxable securities that are entered into by a non-
resident via IFSC.
Under Section 54GA of the ITA Capital gains tax on the transfer of assets is exempted for the shifting of
industrial units from an urban area to SEZ on the satisfaction of certain conditions.
Under Section 10(15)(viii) of the ITA, interest income is exempted from tax for non-residents/not ordinarily
residents if the deposit is made in an Off-Shore Banking Units(OBUs) situated in SEZs.

Legal Procedure for Setting-up of SEZs in India

Legal Criteria for the Approval of SEZ
The objectives for the establishment of SEZs as aforementioned under the heading of Why SEZs are
established? are pretty much the criteria for the approval of a SEZs project. In addition, the SEZ project shall in
no manner subvert the sovereignty, integrity and security of India.

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Under Section 9(2) of the SEZ Act, BOA has the complete authority to reject, approve or modify the proposal
for SEZs' establishment. Further, it also has the power to revoke the approval after the applicant has been heard
on the same.
The legal procedure to establish SEZs in India by private entities including individuals, co-operative societies,
companies, partnerships, etc is as follow:
Step 1: Submission of proposal
If an organisation has identified the location where it wishes to set up an SEZ, it has to make a proposal either
to the State's government or directly to the BOA using From-A prescribed under the Special Economic Zones
Rules, 2006 (SEZs Rules).
Step 2: Approval from State and BOA
If the proposal is first made to the State government, then it is forwarded to BOA along with its
recommendation within 45 days from the date of proposal. But if the proposal is directly made to the BOA,
then the developer needs to get the concurrence of the State Government within six months from BOA's
approval date.
Step 3: Obtaining the Letter of Approval
Thereafter, the proposal is forwarded to the Central Government, which after its satisfaction grants the Letter of
Approval to the concerned person. This letter has a validity period of three years within which the developer
has to implement the proposal and kick off the operations. Though, BOA has the power to grant a two years
sanction depending upon the merit of the developer.
Step 4: Submission of land documents
After obtaining the LOA, the developer is required to submit the documentation of land acquired for the
purpose of the establishment of SEZ. SEZs & FTWZs other than those for IT/ITES, Biotech or Health (except
hospitals) services, must have a contiguous land area of 50ha or more. But in the case of Meghalaya, Nagaland,
Manipur, Assam Tripura, Himachal Pradesh, Arunachal Pradesh, Uttarakhand, Sikkim, Goa, Mizoram or in a
UT, the limit is 25ha or more.
For SEZs in Biotech, Health (except hospitals) and IT/ITES services, there is no minimum land area threshold
but the minimum built-up processing-area thresholds are as per the provisions laid down in SEZ (3rd
Amendment) Rules, 2019 notified vide 17th December 2019 notification.
After the concerned Development Commissioner has inspected the area and submitted his report on the
contiguity and vacancy of land certifying the same, the area is notified as SEZ by the Central Government.
Step 5: Complete Project's Details Submission
Once the green signal is received for the land, the developer has to provide complete details about the project in
order to commence the authorized operations, apply for the exemptions, concessions and drawbacks.
Step 6: Demarcation of Land
Afterwards, the SEZ land is divided into processing and non-processing areas. The processing areas are then
allotted to individual businesses who wish to conduct business under that SEZ by the developer. The developer
is not allowed to sell the non-processing areas but can utilise such areas by allotting them for business or
societal causes.
Note: The developer or co-developer needs to have a minimum of 26% of the equity in the entity proposing to
create the business, residential or recreational facilities within SEZ.

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Compliances for the establishment of SEZs

The developer has to sign a bond-cum-legal undertaking with respect to the proper utilisation of goods. Further,
he also has to sign an undertaking saying that he will be compliant with the Area Planning laws, Pollution
Control laws, Industrial & Labour laws and Sewerage Disposal laws.
SEZ Authority is also obligated to undertake the development, operations and management of SEZ including
but not limited to infrastructural advancement and promotion of exports and other supervisory work.
Resolution of Dispute in SEZs
As per Section 42 of the SEZ Act, any dispute between developers, entrepreneurs or developer-entrepreneur
dispute shall be referred to arbitration.
But such disputes can only be referred for arbitration unless before the date when a court has been designated to
resolve them. These courts are designated under Section 23(1) of the SEZ Act and have the power to try civil
suits and suits of the notified offences. An appeal under Section 24 of the SEZ Act can be filed against the
Order(s) of the designated court(s) before the High Court within 60 days from the date of the verdict.
Conclusion
There are 262 operational SEZs in India. Since 2006 (when SEZs rules were official) 426 SEZs have been
formally approved out of which 358 have been notified. A total of 20L jobs have been generated by these SEZs
since 2006. In 2015-16, these SEZs made exports worth INR 4,67,337 (USD 71.38B), while in 2016-2017, it
increased by 12.05% to 5,23,637
(USD 78.07B).

Define contribution examine the law relating to contribution by the

employer and employees under the employees provident fund act
1952
The Employee Provident Funds, 1952

Introduction
The Employee Provident Funds, 1952 is a beneficial legislation enacted for the betterment of the future of
industrial worker:
On his retirement.
For his dependents in case of death of employment.
This Act is enacted as a social security measure which falls under the ground of “retirement benefit”, the object
of this Act is to inculcate, non withdrawable financial benefit, the sum is payable normally on retirement or on
the death of the employee. Administration of the scheme given under this act is done by the central board, state
board, and regional committee, a chief executive committee appointed and constituted by the central
government.
Central board _ Section 5A

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Executive committee – Section 5AA

State board – Section 5B
Regional committee
Boards under the Act
Constitution and position
Central board: Section 5
Central board – Central board is created by official gazette notification given by the Central government.
Functions
Section 6 and Section 6C discussions how the central board should use their fund vested on them.
Duty of the central board is to send an annual report to the Central government, of its work and activities.
The central government will submit a report to the comptroller and Auditor General of India. Comments of
Central board is laid down before parliament.

Constitution of the following a person as a member:

Chairman and a vice-chairman appointed by the central government
The central Provident fund commissioner, ex-official
Among Central government officials (not more than five-person)
A representative of states (not more than 50)
Representing the employer of the establishment (10 people)

Representing the employee of the establishment (10 people)

Executive committee: Section 5AA

State Board: section 5 B
The central government, after consulting with any of the states constitute the state board in the following state,
as provided for in the scheme. Constitution of the state board is done by the notification in the official gazette.
Central government from time to time prescribes the duties to be performed by the state board and the powers
exercised by the state government. The following scheme will provide the terms condition subject to which a
member of state board is appointed, time place and procedure for conducting meetings etc. Every board of
trustee constituted under this section is a Body Corporate, being a body corporate, it has perpetual succession, a
common seal and right to sue or get sued in its name.
Regional committee
Until state board is constituted, the Central Government may set up Regional Committee, which is under the
control of Central Government, it works under the advice of the following person:
Central board, when matters referred to it from time to time.

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All the matter regarding “administration of the Scheme”, such as the progress of recovery of PF, contribution
and other charges, speedy disposal of prosecution, settlement of claims and sanctions of advances.

Appointment of central fund commissioner

The central government shall appoint Central provident fund commissioner, deputy provident commissioner
and regional provident fund commissioner by discharging his duty they will assist central provident fund
commissioner.
Chief executive officer is appointed by the central provident fund commissioner.
Central Board will appoint other officers, employees for the efficient administration of various schemes.
EPF Features
The employer is under a statutory obligation to deduct a specified percentage of the contribution from the
employee’s salary for provident fund. The employer should also contribute such percentage for provident fund.
An employee who gets more than 15,000 is eligible for getting the provident fund.
This Act contains nearly 20 sections and four schedules. Section 7E, F, G, H, M, N is omitted, section 20 is
repealed.
Applicability of the Act – section 1 of this Act deals with the application of the Act. This is applicable to
“every factory engaged in any industry specified in schedule I”.
Every establishment in which 20 or more are employed.
Any establishment notified by the central government.
Any class of such establishment employing 20 or more. This Act is applicable to home workers held in the case
Mangalore Gandhi Beedi workers V. U.O.I and [Link] V. U.O.I.
This Act is applied when the establishment satisfies the two tests, namely:
Whether there is an establishment is a ‘factory’?
Whether 20 or more person is employed which is held in the case Andhra University V. Regional Provident
Fund Commissioner.
Some workers will not come under this Act. They are Casual, or temporary workers can’t be considered as
employee held in the case Bikar cold storage co. Ltd. V. Regional PF Commissioner.
Non-applicability of the Act
The Act does not apply to the following things. Any establishment registered under the co-operative society
Act, 1912. Any state-related co-operative society employed less than 50 people and working without the aid of
power. From the date on which the establishment is set up, where the establishment as:
Only 50 or more persons, after the expiry of 3 years.
Only 20 or more, but less than 50 people before the expiry of 5 years, which is held in the case V.K. Bhatt V.
A.C.B & T. Mfg. Co.
Central Government also has the power to exempt any class of establishment, on such condition mentioned in
the notification:
 On the ground of financial position.

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 Other circumstances of the case which is held in the case Mohammed Ali V. U.O.I.
 Eligibility For getting EPF- Any person is eligible, who is employed:
 For work of the establishment.
 Through contractor.
 Connection with work of establishment is eligible for the benefit of the Act.
This Act was constitutionally challenged on the ground that it is:
Discriminative in nature.
Article 14 is violated because it is applied only to a particular class of industry, but the Supreme Court said that
it doesn’t violate article 14, it is certain, classification of a certain class of industry falls in reasonable
classification which is valid.

Schemes under EPF

Employees provident fund scheme 1952
Section 5 gives wholly unrestricted unguided direction to the central government to frame a scheme, and it
appears on the other hand that the Act is full of carefully laid down principles to guide the central government
which is held in the case R.P.F. Commr. V. L.R.F Works, A.I.R 1962 Punj. 507
When they say that this scheme has retrospective effect, the employer cannot be asked to pay the employees
contribution for the period antecedent to the notification applying the scheme because he has no right to deduct
the same for the future wages payable to the employee. The payment of employee contribution by the employer
with the corresponding right to deduct the same from the wages of the employees could be only for the current
period during which the employer also has to pay his contribution, which is held in the case District exhibitors
Assn.,Muzaffarnagar & others V. Union of India (1991) II LLJ 115 (SC).
They were re-employment by the petitioner on a temporary basis. It was held that the employer cannot be asked
to pay a contribution in respect of re-employed employees on a temporary basis which is held in the case
Bombay printers LTD. & Others V. Union of India and others (1992)I LLJ 816 (BOM).
The fund shall be administered by the central board constituted under section 5A of the Act. The scheme shall
take effect either prospectively or retrospectively.

Employees deposit linked insurance scheme, 1976

The scheme Established the purpose of providing life insurance benefits to the employees. The benefit under
the scheme is to provide the incentive to the members to save more in the Provident fund account. The benefit
under this scheme is linked to the amount of accumulation in the Provident fund account of the member. All the
members of the employee’s Provident Fund Scheme are covered as members of the employee’s deposit linked
insurance scheme also.

Employee’s family pension scheme, 1995

For the benefit of providing family pension and life insurance benefit. Following benefit package is:
Pension for life to the member, on retirement and invalidation
To the member of the family upon the death of the members.

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Facility for capital return ( corpus accretion) on an option formula basis

Commutation if pension up to 1/3 Rd of pension amount.
Retention of membership of the scheme till attaining the age of 68
Retirement pension under the new scheme will be payable on fulfilling minimum 10 years eligible service and
on attaining the age of 58 years.

EPF Form
Form 20 EPF settlements in case of employee’s death.
This form is submitted by the beneficiary if the employee is departed, to the benefit of EPF, EPS and EDLI.
The amount is paid directly to the beneficiary account, or they will send through money order.

Form 31 Withdrawal of EPF

This form is submitted for partial withdrawals, used for purposes of house renovation, availing loans, for
education, medical treatment etc. eligible criteria will vary depending on the purpose of withdrawal.

Form 10C EPS withdrawal

This form is used to claim the withdrawal benefit:
Before completing 10 years of service.
Has attained the age of 58 years but not completed 10 years of service.
This form is also used by the family member of the employee in the following circumstances like:
Employee departed (after attaining the age of 58 years but has not completed 10 years of service).
An employee who is above 50 years old but less than 58 years, who don’t wish to opt for a reduced pension can
also use Form 10C.

Form 5 Registration form for new employees for EPS and EPF
This form is used by employers for enrolling new employees for this scheme. The new employee will give his
personal details. This form helps the EPFO to register individuals who are joining the first time for this scheme.
The form should be submitted by the employer before the 15th of every month, the official website of the EPFO
provides the form where we can download.
Form 5(IF) Employees’ Deposit Linked Insurance (EDLI) scheme claim form
An employee who is contributing to the EPF scheme is already eligible for the employee linked insurance
scheme. In case an employee is departed, this form helps the beneficiary to get the benefit. By submitting this
form, the beneficiary is eligible to get insurance benefit of rs.4.5 lakhs and bonus benefit of rs.1.5 lakh
(maximum benefit of Rs. 6 Lakh).
Form 10D to apply for a pension after retirement
This form is used for withdrawal of pension on a monthly basis after retirement.

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Form 11 Automatic transfer of EPF

The employee must fill this form while joining a new company. This is a self-declaration regarding the transfer
of EPF, details regarding last EPF account must be filled in this form.

Form 14 LIC Policy

This form is submitted to pay the premium amount for the LIC policy; this form should be submitted to EPF
Commissioner after getting an attestation from the employer.
Form 15 G to save Tax Deducted at Source (TDS) for any interest that is generated from EPF
This form is submitted to use to online withdrawal of EPF amount; this form is used to withdraw the EPF
amount (above 50,000) before completing 5 years of service. Senior citizens must submit 15H for this facility.

Form 19 Settlement of EPF

This form is submitted by the member who is not having UAN number after 2014.
Form 2 Nominations for the EPF and Employees’ Pension Scheme (EPS)
The employee who is under the scheme shall submit this Form 2 for nomination. The nominated person will get
the EPF fund amount if the employee (EPF member) is departed.
UAN- Universal Account Number
Universal account number (UAN) is number given to an employee by the Ministry of Employment and Labour
under the government of India, who is maintaining PF account. It used to know information or track
information done by his employer regarding his provided fund (PF). When an employee joined in the new
organisation, he was assigned with new PF account, after UAN came into existence, the member of the
assemble (employee) all his PF account associated with multiple Ids of difference organization at one place. So
through UAN, difficulties faced by the employee when he/she joins the new organization is overcome, with
UAN they can track the activities if there are any payment issues.

Uses of UAN
It is a unique number given to an employee, which is independent of employers.
UAN is used to link all the PF account when the employee is switching his company.
An employer can authenticate his employee by verifying this number and KYC documents.
EPF passbook can be verified by sending SMS EPFOHO UAN ENG TO 7738299899 from the mobile number
which is registered under employee provident fund organization.
An employee can check his deposit done by his employer through online using UAN number, and you can also
get a monthly update regarding your deposit done by the employer.

Transparency Through UAN

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Through UAN employee can check the employer is depositing his PF amount periodically, by registering on
EPF member Portal using his UAN.
The employee would be able to find out whether his employer is deducted or hold back his PF.

EPF Calculation and Example

Contribution for EPF is two parts, one is by the employee, and the other is by the employer.
Contribution by the employee is, including basic wage and dearness allowance is -12%.

Contribution on the part of the employer is-

8.33% (for Employees Pension Scheme Account of Employee)
3.67 % (for Employee Provident Fund Account of Employee)
0.50% ( for Employees Deposit Linked Insurance Account of Employee)
0.50% ( is Employer has to pay an additional charge for an administrative account- minimum 500 rupees and if
there is no contribution by the employer that month, an employer must pay rupees 75)
The interest rate for every month is 8.65%, which may differ every year (interest rate is calculated every month,
but it is deposited in the account at the end of the financial year)

Example
For example, the employee is getting a basic salary and dearness allowances at rupees 15, 000.
Employee’s contribution to EPF is 12% of 15,000 that is 1,800.
Employer’s contribution to EPF is 8.33 % of 15,000 that is 1,250.
Employers contribution for EPF is subtracted from employees contribution that is (1800-1250=550)
Total EPF contribution every month is 1800+550=2,350
Interest for every month is 8.65%/12= 0.7083% (4,700)
Online EPF Submission
Online claim process reduces the time from 20 days to 10 days, follow the below-given steps for EPF online
submission.
Activate UAN.
Make sure mobile no. used to activate the UAN, is in use.
By seeding your adhaar details, e-KYC take place through a onetime password- Aadhaar authority will send.
Enter your bank account details, where the claim amount will appear.
You should enter (PAN) permanent account number if you’re not an EPFO member for at least 5 years.

EPFO Claim status

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EPF claim status can be checked through online or offline,

The status of withdrawal/transfer claim submitted.
Online- Member can check the online claim status by visiting the UAN portal or through visiting the official
website of EPFO.
Offline- Any of the PF office by accessing the EPFO website can track the status of the claim made.
Conclusion
Employees Provident Fund Scheme,1952 came to India through Para 83 of the government of India notification
in 2008, October 1. Employee Pension Scheme.1995 was created by a special provision in respect of
international workers as mentioned in para 43-A. After 2014 it became easily accessible through EPFO website
portal. This Act is created mainly for the purpose of encouraging saving during the period of employment,
where they use it in their old age, sickness or for any emergency purposes.

This study material by

Rajendra Prasad K M
3rd year BA, LLB student
Government law college kolar 563102

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Labour LAW II Model Answers 2020

labour law 2 (Karnataka State Law University)

Studocu is not sponsored or endorsed by any college or university

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AL-AMEEN COLLEGE OF LAW, BANGALORE

MODEL ANSWERS- JUNE 2020

VIII Semester 5 Year [Link].B

LABOUR LAW-II

Q1. Explain the constitutional provisions in support of social &

labour welfare.

Over the years, labour laws have undergone change with regard to their
object and scope. Early labour legislations were enacted to safeguard
the interest of employers. They were governed by the doctrine of
laissez-faire. Modern labour legislations, on the other hand, aims to
protect workers against exploitation by employers. The advent of
doctrine of welfare state is based on the notion of progressive social
philosophy which has rendered the old doctrine of laissez-faire
obsolete. The theory of 'hire and fire' as well as the theory of 'supply
and demand' which found free scope under the old doctrine of
laissezfaire no longer hold good.
The growth of industrial jurisprudence can significantly be noticed not
only from increase in labour and industrial legislation but also from a
large number of industrial law matters decided by Supreme Court and
High Courts. It affects directly a considerable population of our country
consisting of industrialists, workmen and their families. Those who are
the affected indirectly constitute a still larger bulk of the country’s
population.
After India became independent, it adopted a Constitution on the 26
April 1949. Indian Constitution is a unique basic national document.
Besides providing basic principles for governance, it presents the
aspirations of the Weaker Section of Society, specially the working
classes. It has conferred innumerable rights on the protection of labour.
It is also a strange phenomenon of history that national freedomstruggle
and struggle of working class emancipation coincided and our leaders
fought for both- the betterment of worker's lots and India's freedom.

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During this period, they made some promises and pledges to the
working classes, which were to be redeemed after independence. The
redemption of all those promises and pledges get expression in our
Constitution.
Constitution is the supreme law of a nation and all legislations draw
their inspiration from it. Constitution is a document of social revolution
casting an obligation on every instrumentality including the judiciary
to transform the status quo ante into a new human order in which
justice, social, economic and political will inform all institutions of
national life and there should be equality of status and opportunity to
all.
The Indian Constitution, the Preamble, the Fundamental Rights and the
Directive Principles of State Policy, embody the fundamental
principles, which provide guide to all legislations, including the labour
legislations. This constitutional trinity assures its citizens to provide
"Socialistic Pattern of Society" and create "Welfare State" and all
legislations, specially the Labour legislations, are deeply influenced by
them.
Article 14 commands State to treat any person equally before the law.
Article (19) (1) (c) grants citizens the right to form association or
unions.
Article 21 promises protection of life and personal liberty.
Article 23 prohibits forced labour he Committee on Labour Welfare,
1969, noted that “labour welfare includes such services, as facilities
and amenities as adequate canteen, rest and recreational facilities,
sanitary and medical facilities, arrangement for travel to and from
work and for the accommodation of the workers employed
at a distance from their homes and such other services amenities and
facilities as contribute to improve the condition under which workers
are employed.”

Q2. Define bonded labour explain the international conventions in

support of bonded labour.
Under this system when an elder of an Indian family took a loan mostly
for agriculture and fails to repay the same, his descendants or

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dependents have to work for the creditor without reasonable wages

until the loan is repaid. This system is commonly known as “Bandhua
Mazdoori”. Also it is to be mentioned here that because of illiteracy
and backwardness the loan structure was made in a way that the interest
over a small period of time will be greater than the principal sum and
then there was interest charged on the already existing interest. Hence
the loans were made in a way that they cannot be repaid. Several
generations are made to work in degradable condition and extreme
poverty under this system. Even after India got independence and
Indian Constitution came to power that enshrines the principal of
Equality and Dignity the practice of Bandhua Mazdoori continued.
With an aim to end this practice, Indian Parliament enacted Bonded
Labour System (Abolition) Act, 1976.
Bonded labour has been defined in the Bonded Labour System
(Abolision ) Act, 1976, under Sec 2(e) "bonded labour" means any
labour or service rendered under the bonded labour system;
Sec 2 (f) "bonded labourer" means a labourer who incurs, or has, or is
presumed to have, incurred a bonded debt;

Bonded labour has been defined as well as addressed as a prohibited

practice in several international conventions as well as a many Indian
legislations.
As per ILO’s Forced Labour Convention, 1930 (No. 29) [Article 2(i)]
— The term forced or compulsory labour shall mean all work or
service, which is exacted, from any person under the menace of any
penalty and for which the said person has not offered himself
voluntarily.

Universal Declaration of Human Rights — On December 10, 1948, the

General Assembly of the United Nations adopted and proclaimed the
Universal Declaration of Human Rights. Article 4 says: “No one shall
be held in slavery or servitude; slavery and slave trade shall be
prohibited in all their forms.”

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UN Supplementary Convention on the Abolition of Slavery (1956) —

Under this Convention debt bondage is defined as “the status or
condition arising from a pledge by a debtor of his personal service or
those of a person under his control as security for a debt, if the value of
those services as reasonably assessed is not applied toward the
liquidation of the debt or the length and nature of those services are not
respectively limited and defined.”

As per ILO Report on Stopping Forced Labour (2001) — The term

(Bonded Labour) refers to a worker who rendered service under
condition of bondage arising from economic consideration, notably
indebtedness through a loan or an advance. Where debt is the root cause
of bondage, the implication is that the worker (or dependents or heirs)
is tied to a particular creditor for a specified or unspecified period until
the loan is repaid.

The ILO & Bonded Labour,

Through various conventions the ILO protects bonded Labour some of

the conventions are,
1. Forced Labour convention 1930
2. The Universal declaration of HR
3. Un Supplementary Convention on the Abolition of Slavery 1956

The ILO report on Stopping Forced Labour (2001):

It defines Bonded Labour as, workers who render services under the
condition of the bondage arising from the economic consideration, like
indebtness through a loan or an advance, where the debt is the root
cause of the bondage, the implementation is that the worker is tied to a
particular creditor for a specified or an unspecified period until the loan
is repaid.
The ILO conventions have prohibited the bonded labour, child labour
& implemented with compulsory education with a view to provide
appropriate facilities for all round development of the child labour.

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The right to education is provided in the UDHR (universal Declaration

of Human Rights), the ICESCR (International Covenant on Economic,
Social, & Cultural Rights), ICCPR (international Covenant on civil &
political rights) & the Universal Declaration forms the bill of Human
Rights.

These instruments specify education must be compulsory & free to all,

secondary education; including vocational education must be available
& accessible to all children. These conventions further states that, the
states must make education, vocational information & guidance
available & accessible to all children & take measures to encourage
regular attendance & reduction of drop outs rates .

Q3. Define bonded labour explain the constitutional provisions

relating to bonded labour.

Bonded labour has been defined in the Bonded Labour System

(Abolision ) Act, 1976, under Sec 2(e) "bonded labour" means any
labour or service rendered under the bonded labour system; as well as
Bonded Labourer has been defined under Sec 2 (f) "bonded labourer"
means a labourer who incurs, or has, or is presumed to have, incurred
a bonded debt;
Bonded labour has been defined as well as addressed as a prohibited
practice in several international conventions as well as a many Indian
legislations.
As per ILO’s Forced Labour Convention, 1930 (No. 29) [Article 2(i)]
— The term forced or compulsory labour shall mean all work or
service, which is exacted, from any person under the menace of any
penalty and for which the said person has not offered himself
voluntarily.
Forced Labour: It is widely defined, whenever a person is compelled to
give his labour or service, even though remuneration is paid for it. The
same would be the result where the labourer is obliged to work at wages
less than the minimum wages.
Labour Rights and Indian Constitution

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Indian constitution provides numerous safeguards for the protection of

labour rights. These safeguards are in the form of fundamental rights
and the Directive principle of State policy.
Articles 14,19,21,23 and 24 comprise of fundamental rights promised
under part III of the Constitution. Articles 38, 39, 39A, 41, 42, 43,43A
and 47 form part of the Directive Principles of State Policy under Part
IV of the Constitution, but they are not enforceable in a court of law.
Article 39, 39A, 41, 42, 43 and 43A collectively can be termed “Magna
Carta of working class in India.”
Article 14 commands State to treat any person equally before the law.
Article (19) (1) (c) grants citizens the right to form association or
unions.
Article 21 promises protection of life and personal liberty.
Article 23 prohibits forced labour.
Article 24 prohibits employment of children below the age of fourteen
years.
Article 39(a) provides that the State shall secure to its citizens equal
right to an adequate means of livelihood.
Article 39A provides that the State shall secure the equal opportunities
for access to justice to its citizens and ensure that such opportunities
are not denied by reason of economic or other disabilities.
Article 41 provides that within the limits of its economic capacity the
State shall secure for the Right to work and education.
Article 42 instructs State to make provisions for securing just and
humane conditions of work and for maternity relief.
Article 43 orders the State to secure a living wage, decent condition of
work and social and cultural opportunities to all workers through
legislation or economic organisation. And
Article 43A provides for the participation of workers in Management
of Industries through legislation.

1. Article 21 of the Indian Constitution – This is the most

important and foremost safeguard against any exploitation of
human lives and their liberty. It is part of the Basic Structure of
the Constitution and cannot be amended. It secures the right to life
and right to live with human dignity to every person in India. So,

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any practice of bonded labour would be in contravention of this

Constitutional provision since bonded labour deprives a person of
numerous liberties.
2. Article 23 of the Indian Constitution – As discussed above, the
Constitution of India expressly provides for the abolition of
forced labour and prohibits this form of forced labour in the
territory of India. This not only prohibits bonded labour but also
covers the practice of Begar and other forms of human trafficking
in India.
3. Article 39 of the Constitution – This is covered in Part IV of the
Indian Constitution which deals with the Directive Principles of
State Policy is albeit not enforceable but are considered
irrefutable for the purpose of governance. This constitutional
provision directs the State to secure the right to an adequate
livelihood. It also directs the state to formulate its policies with an
object that no citizen is forced out of economic necessity to enter
into avocations which are not suited to them.
4. Article 42 of the Constitution – This is also a Directive Principle
of State Policy which states “The State shall make provision for
securing just and humane conditions of work” This means that the
state must ensure that every person has a working condition which
are just and humane for them. However, since it is part of Part IV,
it cannot be enforced.
5. Article 43 of the Constitution – This directive directs the State
to secure i.e. conditions for work ensuring a decent standard of
life.

Indian judiciary has played significant role in the implementation of the

Act. The Court has tried to expand the scope of forced labour and
protect the rights of citizens time and again.
There have been cases in India even after the enactment of the Act
which the Apex Court has dealt.

An-interesting custom of Manipur State came to the notice of the Court

in Kahaosan Thangkhul v. Simirei Shaileis (AIR 1961 Mani 1).
There appears to have been a custom for each of the householders in

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the village to offer one day's free labour to the headman of the village.
The appellant in that case refused to offer such free labour and
challenged the custom as being opposed to the provisions of Article
23(1) of the Constitution, which prohibits begar and other forms of
forced labour. The court held the custom as violative of Article 23(1)
of the Constitution.

In the case of Neerja Chaudhury v. State of Madhya Pradesh (1984

3 SCC 243),
The Supreme Court held – “It is the plainest requirement of Articles 21
and 23 of the Constitution that bonded labourers must be identified and
released and on release, they must be suitably rehabilitated. Any failure
of action on the part of the State Government in implementing the
provisions of [the Bonded Labour System (Abolition) Act would be the
clearest violation of Article 21 and Article 23of the Constitution.”

As mentioned above, there are a few constitutional provisions that

safeguard the system of bonded labour from being practised. In this
case, the Apex Court did very well by relating the issue of bonded
labour system with the person’s fundamental right enshrined in Article
21 of the Constitution and gave a clear thrust to the State to implement
Article 21 and Article 23 of the Constitution.

Also, in the case of People’s Union for Democratic Rights v. Union

of India (AIR 1982 SC 1473),

The Supreme Court of India delivered the judgement stating – “Where

a person provides labour or service to another for remuneration which
is less than minimum wage, the labour or service provided by him
clearly falls within the scope and ambit of the word `forced labour’ ”

As seen, the Court has tried to expand the scope of forced labour and
protect the rights of citizens time and again.

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In Sathyajit Rai V/S State of Rajasthan (AIR 1983 SC 328), the

court invalidated that provision of Rajasthan Famine Relief Wok
Employees Act 1964 which exempted the application of Minimum
wages Act 1948 to the employment of famine relief works. The law
laid down in the Asiad workers case & followed in Stahyajit Rays case
has been fully endorsed.

In Bandhu Muckthi Morcha V/S Union of India (1984 3 SCC 161),

Where the Sc declared bonded labour as a crude form of forced labour,

which is prohibited u/Art 23 of the constitution. SC further held that
failure of the state to identify the bonded labour, to release them from
they bondage & to rehabilate them as envisaged by the Bonded Labour
Act 1976 violates Art 21 of the constitution.

In Bandhua Mukti Morcha v. Union of India, the main issue concerned

the existence of bonded labour in the Faridabad stone quarries near the
city of Delhi. It was alleged that majority of the workers were
compelled to migrate from other states, and turned into bonded
labourers. The workers were living in sub-human and miserable
conditions. A violation of various labour laws and the Bonded Labour
System (Abolition) Act 1976 was alleged. The SC stated that before a
bonded labour can be regarded as a bonded labourer, he must not only
be forced to provide labour to the employer but he must have also
received an advance or other economic consideration from the
employer, unless he is made to provide forced labour in pursuance of
any custom or social obligation or by reason of his birth in any
particular caste or community.

Begar is a form of forced labour under which a person is compelled to

work without receiving any remuneration. Other similar forms of
forced labour were interpreted the Supreme Court when it ruled in the
Asiad Workers Case that both unpaid and paid labour were prohibited
by Article 23, so long as the element of force or compulsion was present
in the worker's ongoing services to the employer.

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Thus the Supreme Court set a new constitutional standard at a time

when State on its part had completely neglected the human values. The
court further remarked that the state government is under the
constitutional scheme, charged with the mission of bringing about a
new socio-economic order where there will be socio-economic justice
for everyone and equality of status and opportunity for all.

Q4. Explain the provisions regarding prohibition & abolition of

bonded labour.
Abolition of bonded labour system

Sec 4 of the bonded Labour Act deals with Abolition of bonded labour
system , according to sub-sec (1), the bonded labour system shall stand
abolished, any & every bonded labourer shall, on such commencement,
stand freed and discharged from any obligation to render any bonded
labour.
According to sub-sec(2) no person shall- (a) make any advance under,
or in pursuance of, the bonded labour system, or (b) compel any person
to render any bonded labour or other form of forced labour.
The bonded labour system has been abolished from 25th October, 1975
and every bonded labourer has been set free and has been discharged
from any obligation to render any bonded labour from this date. No
person is allowed to make an advance under, or in pursuance of the
bonded labour system. No one can compel any person to render any
bonded labour or other form of forced labour.
Sec 5. Agreement, custom, etc., to be void.-On the commencement of
this Act, any custom or tradition or any contract, agreement or other
instrument, whether entered into or executed before or after the
commencement of this Act, by virtue of which any person, or any
member of the family or dependent of such person, is required to do
any work or render any service as a bonded labourer, shall be void and
inoperative.
From 25th October, 1975 any custom or tradition or any agreement or
other instrument, whether entered into or executed before or after 25th
October, 1975 by virtue of which any person or any member of his

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family or dependent is required to do any work or rendor any service

as a bonded labourer, shall be void and it shall not be operative. Under
section 6 of the Act every obligation of a bonded labourer to repay any
bonded debt have been extinguished no suit or other proceeding shall
lie for the recovery of any such debt. Every decree or order for the
recovery of bonded debt shall be deemed to have been fully satisfied.
Every attach made for the recovery of bonded debt shall stand vacated.
If possession of any property belonging to a bonded labourer or a
member of his family or other dependent was forcibly taken over by
any creditor for the recovery of the bonded debt, such property shall be
restored.
Sec 7. Property of bonded labourer to be freed from mortgage, etc.- (1)
All property vested in a bonded labourer which was, immediately
before the commencement of this Act under any mortgage, charge, lien
or other encumbrances in connection with any bonded debt shall, in so
far as it is relatable to the bonded debt, stand freed and discharged from
such mortgage, charge, lien or other encumbrances, and where any such
property was, immediately before the commencement of this Act, in
the possession of the mortgagee or the holder of the charge, lien or
incumbrance, such property shall except where it was subject to any
other charge, on such commencement, be restored to the possession of
the bonded labourer .
(2) If any delay is made in restoring any property referred to in
subsection (1) to the possession of the bonded labourer, such labourer
shall be entitled, on and from the date of such commencement, to
recover from the mortgagee or holder of the lien, charge or
incumbrance, such mesne profits as may be determined by the civil
court of the lowest pecuniary jurisdiction within the local limits of
whose jurisdiction such property is situated.
Any property vested in a bonded labourer which was under any
mortgage, charge, lien or other encumbrances in connection with any
bonded debt stands freed and discharged and if the possession of the
said property was with the mortgagee or other holder of the charge, lien
or incumberance will be restored to the possession of the bonded
labourer.

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Sec 8. Freed bonded labourer not to be evicted from homestead, etc.-

(1) No person who has been freed and discharged under this Act from
any obligation, to render any bonded labour, shall be evicted from any
homestead or other residential premises which he was occupying
immediately before the commencement of this Act as part of the
consideration for the bonded labour. (2) If, after the commencement of
this Act, any such person is evicted by the creditor from any homestead
or other residential premises, referred to in sub-section (1), the
Executive Magistrate in charge of the Sub-Division within which such
homestead or residential premises is situated shall, as early as
practicable, restore the bonded labourer to the possession of such
homestead or other residential premises.
No person who has been freed and discharged from any obligation to
render any bonded labour will be evicted from any homestead or other
residential premises as part of the consideration for the bonded labour.
Sec 9. Creditor not to accept payment against extinguished debt.-
(1) No creditor shall accept any payment against any bonded debt
which has been extinguished or deemed to have been extinguished or
fully satisfied by virtue of the provisions of this Act.
No person who has been freed and discharged from any obligation to
render any bonded labour will be evicted from any homestead or other
residential premises as part of the consideration for the bonded labour.
(2) Whoever contravenes the provisions of sub-section (1) shall be
punishable with imprisonment for a term which may extend to three
years and also with fine.
(3) The court, convicting any person under sub-section (2) may, in
addition to the penalties which may be imposed under that sub-section,
direct the person to deposit, in court, the amount accepted in
contravention of the provisions of sub-section (1), within such per as
may be specified in the order for being refunded to the bonded labourer.

Q5. Explain the authorities under the Bonded Labour Act.

The authorities under the Bonded Labour Act are the, vigilance
committee, under sec 13 of the act.

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Sec 13. Vigilance Committees.-(1) Every State Government shall, by

notification in the Official Gazette, constitute such number of
Vigilance Committees in each district and each Sub-Division as it may
think fit.
(2) Each Vigilance Committee, constituted for a district, shall consist
of the following members, namely:-
(a) The District Magistrate, or a person nominated by him, who shall
be the Chairman;
(b) Three persons belonging to the Scheduled Castes or Scheduled
Tribes and residing in the district, to be nominated by the District
Magistrate;
(c) Two social workers, resident in the district, to be nominated by
the District Magistrate;
(d) Not more than three persons to represent the official or non-
official agencies in the district connected with rural development, to be
nominated by the State Government;
(e) One person to represent the financial and credit institutions in the
district, to be nominated by the District Magistrate. (3) Each Vigilance
Committee, constituted for a Sub-Division, shall consist of the
following members, namely (a) the Sub-Divisional Magistrate, or
person nominated by him, who shall be the Chairman;
(b) three persons belonging to the Scheduled Castes or Scheduled
Tribes and residing in the Sub-Division, to be nominated by the
SubDivisional Magistrate; (c) two social workers, resident in the Sub-
Division, to be nominated by the Sub- Divisional Magistrate;
(d) Not more than three persons to represent the official or non-official
agencies in the Sub-Division connected with rural development to
be nominated by the District Magistrate;
(e) One person to represent the financial and credit institutions in the
Sub-Division, to be nominated by the Sub-Divisional Magistrate;
(f) One officer specified under section 10 and functioning in the
SubDivision. (4) Each Vigilance Committee shall regulate its own
procedure and secretarial-assistance, as may be necessary, shall be
provided by- (a) the District Magistrate, in the case of a Vigilance
Committee constituted for the district; (b) the Sub-Divisional
Magistrate, in the case of a Vigilance Committee constituted for the

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Sub-Division. (5) No proceeding of a Vigilance Committee shall be

invalid merely by reason of any defect in the constitution, or the
proceedings, of the Vigilance Committee.
Functions of the vigilance committee are described under sec 14 of the
act .
Sec 14. Functions of Vigilance Committees - (1) The functions of
each Vigilance Committee shall be,-
(a) To advise the District Magistrate or any officer authorised by him
as to the efforts made, and action taken, to ensure that the provisions of
this Act or of any rule made there under are properly implemented; (b)
To provide for the economic and social rehabilitation of the freed
bonded labourers;
(c) To co-ordinate the functions of rural banks and co-operative
societies with a view to analysing adequate credit to the freed bonded
labourer;
(d) To keep an eye on the number of offences of which cognizance
has been taken under this Act;
(e) To make a survey as to whether there is any offence of which
cognizance ought to be taken under this Act;
(f) to defend any suit instituted against a freed bonded labourer or a
number of his family or any other person dependent on him for the
recovery of the whole or part of any bonded debt or any other debt
which is claimed by such person to be bonded debt. (2) A Vigilance
Committee may authorise one of its members to defend a suit against
a freed bonded labourer and the member so authorised shall be deemed,
for the purpose of such suit, to be the authorised agent of the freed
bonded labourer.
Sec 15. Burden of proof.-Whenever any debt is claimed by a bonded
labourer, or a Vigilance Committee, to be a bonded debt, the burden of
proof that such debt is not a bonded debt shall lie on the creditor. The
burden of proving that a particular debt is not a bonded debt will be on
the creditor.

Q6. Explain the features of Equal pay for equal wages Act

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In order to ensure this, the Government of India has taken several steps
for creating a congenial work environment for women workers. A
number of protective provisions have been incorporated in the various
Labour Laws. Article 39 of Constitution of India envisages that the
State shall direct its policy, among other things, towards securing that
there is equal pay of equal work for both men and women.
To give effect to this Constitutional provision and also to ensure the
enforcement of ILO Convention the Equal Remuneration Act, 1976
was enacted by the Parliament.
Equal Remuneration Act, 1976 provides for the payment of equal
remuneration to men and women workers and for the prevention of
discrimination, on the ground of sex, against women in the matter of
employment and for matters connected therewith or incidental thereto.

As the Constitution of India, 1950 is the basic law of land which

enshrines number of provisions of prohibit gender discrimination and
protect the interest of women, whether it is political field or industrial
field. The State under its constitutional power had formulated number
of legislations pertaining to women engaged in industrial activities.
Generally speaking, the wages of women have traditionally tended to
lag behind those of men, except in a very few cases. Moreover, the net
earnings of women invariably happen to be lower than those of men.
Women all over the world, had till recently been very much inarticulate
and were prepared to accept lower wages even when they were
employed on the same jobs as men. Even in the economically and
socially advanced countries while remarkable progress has been made,
discrimination still exists. The principle of equal value has not been
always fully implemented. In India, in the initial stages when
legislation for the protection of workers was hardly thought of, factory
owners taking advantage of the backwardness and social handicaps of
the poorer classes, recruited women on a large scale at lower wages and
made them work under inhuman conditions .
There are various reasons, why the employment of women has not been
up to the mark. In a developing country like India the income, by and
large, is low but social conventions weigh against employment of

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women. Due to labour surplus the unemployment and under

employment problems, many men are available; hence, the problem of
participation of women, economic activity becomes serious.
Secondly, technological changes, fixation of minimum work load and
standardisation of wages, rationalisation and mechanisation schemes
and certain occupations being found hazardous, they have necessitated
retrenchment of women workers.
The economic reasons involving additional cost is an impediment to
women employment. Some employers recruit unmarried women only.
on condition to resign their post on getting married. This has been
discriminatory, unfair and unjust.
SALIENT FEATURES OF THE ACT
1. This act is a central act & is applicable to the whole of India.
2. Restrict the employer to create the terms &conditions of work in
contract of services or work of labour in contrary to equal pay for
equal work doctrine & provision for equal remuneration Act.
3. The act applies to all workers even if engaged for a day or few
days.
4. When the employer does not comply with the act he will be liable
to pay fine, imprisonment or both as per sec 10 of the act .
5. Any settlement or any agreement with the employee that is
harmful to the employee isn’t allowed.
With a view to give effect to the goal of equal pay for equal work set
out in clause (d) of Article 39 of the Constitution and Equal
Remuneration Convention of the ILO, the President of India
promulgated on 26th September, 1975, the Equal Remuneration
Ordinance, 1975 so that the Directive Principle could be implemented
in the year which was being celebrated as the International Women’s
year. The above Ordinance was later converted into an Act as Act No.
25 of 1976. The Equal Remuneration Act, 1976 provides for the
payment of equal remuneration to men and women workers and for
prevention of discrimination, on the ground of sex, against women in
the matter of employment and for matters connected therewith or
incidental thereto.

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The Act ensures against discrimination in recruitment and promotion

of men and women. It provides for the setting up of Advisory
Committees to promote employment opportunities for women. It
consists of III Chapters and 18 Sections.

Q7. Discuss the duties of the employers under the Equal

Remuneration act of 1976.

Duties of Employer,
1. Duty of employer to pay equal remuneration to men and women
workers for same work or work of a similar nature.
(Sec. 4)
As per Sec. 4 of the Act, no employer shall pay to any worker,
employed by him in an establishment or employment, remuneration,
whether payable in cash or in kind, at rates less favourable than those
at which remuneration is paid by him to the workers of the opposite sex
in such establishment or employment for performing the same work or
work of a similar nature. Further no employer shall, for the purpose of
complying with the provisions of sub-section (1), reduce the rate of
remuneration of any worker.
In M/s. Mackinnon Mackenzie and Co. Ltd. v. Andrey D’Costa and
another, a female confidential stenographer after the termination of her
services filed a petition under sub-section (1) of Section 7 of the Equal
Remuneration Act, 1976 complaining that during the period of her
service she was paid remuneration at lesser rates than those of male
stenographers who were also performing same or similar work. The
employer contended that the lady was working as a Confidential
Stenographer and is part of a different class. The court rejected the plea
of the employer that the woman was in a different class. It held, ‘If only
women are working as Confidential Stenographers it is because the
management wants them there. Women are neither specially qualified
to be Confidential Stenographers nor disqualified on account of sex to
do the work assigned to the male Stenographers. Even if there is a
practice in the establishment to appoint women as Confidential
Stenographer such practice cannot be relied on to deny them equal
remuneration due to them under the Act.’ Therefore, the Court applied

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the Equal Remuneration Act to grant equal salary to female

stenographers. Exception (Sec. 16)
Regarding the power to make declaration of differences Section 16 of
the Act provides that:
“Where the appropriate Government is, on a consideration of all the
circumstances of the case, satisfied that the differences in regard to the
remuneration, or a particular species of remuneration, or men and
women workers in any establishment or employment is based on a
factor other than sex, it may, by notification, make a declaration to that
effect, and any act of the employer attributable to such a difference
shall not be deemed to be contravention of any provision of this Act.”
In C. Girijambal v. Government of AP, [(1981) 2 SCC. 155], it has
been held that the principal of equal pay for equal work is not
applicable in professional services.
In M/s. Mackinnon Mackenzie and Co. Ltd. v. Andrey D’Costa and
another, It was also held that the Act does not permit the Management
to pay to a section of its employees doing the same work or work of a
similar nature lesser pay contrary to Section 4(1) of the Act because of
its financial position which does not permit payment of equal
remuneration to all. The applicability of the Act does not depend upon
the financial ability of Management to pay equal remuneration as
provided by the Act.
In Ashok Kumar Garg v. State of Rajasthan, [(1994) 3 SCC 357] it
has been observed that the question of equal work depends on various
factors like responsibility, skill, effort and condition of work.
In State of AP and others v. G Sreenivasa Rao & others, 1989 SCC
(2) 290, It was held that equal pay for equal work does not mean that
all the members of the same cadre must receive the same pay packet
irrespective of their seniority, source of recruitment, educational
qualifications and various other incidents of service.
2. No discrimination to be made while recruiting men and women
workers
As provided under Section 5 of the Act, no employer shall be allowed
to make discrimination while making recruitment for the same work or
work of a similar nature or make any discrimination on the basis of sex
unless that particular employment of women or men is restricted or

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prohibited by any statute. Therefore, in matter of recruitment policy

and condition of service such as promotions, training or transfer, the
employer is not authorised to make discrimination against women only
on the basis of sex. This provision is similar to the provision contained
in Article 16(1) of the Constitution of India, 1950.
Provided that the provisions of this section shall not affect any priority
or reservation for scheduled castes or scheduled tribes, ex-servicemen,
retrenched employees of any other class or category of persons in the
matter of recruitment to the posts in an establishment or employment.
3. Duty to Maintain Registers
As per section 8, it is the duty of every employer, to maintain registers
and other documents in relation to the workers employed by him in the
prescribed manner.

Q8. Discuss the causes of migration of the workers under the

Interstate Migrant Workmen Act.

The system of employment of Inter-State Migrant Labour (known in

Orissa as Dadan Labour) is an exploitative system prevalent in Orissa
and in some other States. In Orissa, Dadan Labour is recruited from
various parts of the State through contractors or agents called
Sardars/Khatadars for work outside the State in large construction
projects. This system lends itself to various abuses. Though the Sardars
promise at the time of recruitment that wages calculated on piece-rate
basis would be settled every month, the promise is not usually kept.
Once the worker comes under the clutches of the contractor, he takes
him to a far-off place on payment of railway fair only. No working
hours are fixed for these workers and they have to work on all the days
in a week under extremely bad working conditions. The provisions of
the various labour laws are not being observed in their case and they
are subjected to various malpractices.
The Twenty-eighth Session of the 'Labour Ministers' Conference (New
Delhi, October 26, 1976) which considered the question of protection
and welfare of Dadan Labour recommended the setting up of a small
Compact Committee to go in to the whole question and to suggest
measures for eliminating the abuses prevalent in this system. The

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interState migrant workmen are generally illiterate, unorganised and

have normally to work under extremely adverse conditions and in view
of these hardships, some administrative and legislative arrangements
both in the State from where they are recruited and also in the State
where they are engaged for work are necessary to secure effective
protection against their exploitation. The Compact Committee which
was constituted in February, 1977, therefore, recommended the
enactment of a separate Central Legislation to regulate the employment
of interState migrant workmen as it was felt that the provisions of the
Contract Labour (Regulation and Abolition) Act, 1970, even after
necessary amendments would not adequately take care of the variety of
malpractices indulged in by the contractors/ Sardars/ Khatadars, etc.,
and the facilities required to be provided to these workmen in view of
the peculiar circumstances in which they have to work.
The recommendations of Compact Committee had been examined in
consultation with the State Governments and the relevant Central
Ministries, Interstate Migrant Workmen (Regulation of Employment
and Conditions of Service) Act, 1979 was passed by both the houses of
Parliament and President of India gave his assent on 11- 06-1979.
Causes of Migration
Basically, situations of surplus labour arising from scarcity of
agricultural land, inequitable land distribution, low agricultural
productivity, high population density and the concentration of rural
economy almost exclusively on agriculture frequently lead to an
increase in out migration. This combination of factors creates a force
that is encountered more often in fragile environments. Such as natural
calamities like drought, floods, water lagging, river bank erosion etc.
Another important factor is down sizing of public sector jobs and
overall stagnation in job creation strategy in India and inadequate
planning. Population explosion, rapid growth of labour forces, high rate
of unemployment, uneven growth and development, religious
backwardness, poverty, socio-economic and educational
backwardness, illiteracy and acute scarcity of livelihood resources are
few more factors responsible for migration. In case of voluntary
migration of unorganised work force is mostly on account of wage
variations.

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The major causes are as follows:

1. Better employment opportunities and higher wages in
economically developed regions and non-availability of employment
opportunities and consequent hardship in the under-developed regions.
2. The economic necessity, inter-regional disparity in economic
growth due to uneven development and disparity between socio-
economic classes is the most important reason in view of National
Commission on Rural Labour.
3. Freedom of movement in any part of the territory of lndia and
freedom to pursue any avocation of choice as guaranteed by Article 19
of the Constitution of lndia legally permit people to migrate for better
job avenues and on account of these constitutional provisions migration
cannot be prohibited, although the migrant workers are hardly aware of
these [Link] hardship and exploitation the income of
migrant labour may be generally higher than what they would have
been able to earn without migration.
[Link] of Migrant Labour
The basic features of migrant labour force may be identified. They are
generally unskilled, unorganised, uneducated and have low bargaining
power, rather no bargaining power, they are poor ignorant or in a
socially or economically disadvantaged position belonging to the
lowest strata of society. It is useful to keep an eye on labour migration
patterns in India. The studies on Migrant Labour indicate that poor
households participate extensively in migration in India. When the
male Worker migrates with his family he is more prone to exploitation-
economic, social and otherwise. His children form part of child labour
and sometimes even bonded labour without any sympathetic look
towards their tender age and development. These unfortunate members
of the society remain so unguarded that they become victims of
crushing accidents, killings and terrorist violence the people are
shocked to read in newspapers.
- Hardships and Problems Faced by Migrant Labour
Migration itself is a tough undertaking as the migrants travel with or
without family and live in very hard and difficult conditions and face
strategy of hire and fire. They are required to work for long hours in
the harsh and unhygienic conditions. No shelters, no medical facilities,

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no drinking water, no welfare fund for migrant workers, no creche for

their children are provided. They are low paid and the contractors
generally make deductions from their wages and they face
discriminatory treatment by the employers. The accidental injuries are
a common feature and fall short of adequate medical assistance or
compensation. Fuel, sanitation and insecurity (physical as well as job)
are the major problems they face un-armed, unguarded, un-heard,
unwept and un-aware of their own rights guaranteed by their own
Constitution, welfare legislation and welfare schemes launched by their
own States. One may believe or not they face harassment, abuse, theft,
forcible eviction or demolition of their dwellings by urban authorities
or police force under beautification schemes. The sexual exploitation
of women by masons, contractors and other powerful persons of the
locality is a routine but unreported in fear of untold consequences (loss
of employment and violence). The children are even more vulnerable
to such abuse.
The labour welfare laws, Government welfare programmes and
schemes are meaning less and beyond their imagination on account of
ignorance, illiteracy, lack of information social and economic
backwardness.

Q9. Explain the provisions relating to registration of

establishments under the Interstate Migrant workmen Act.

Registration of Establishment Employing Inter-State Migrant

Workmen (Secs. 3-6)
The establishment proposing to employ inter-State Migrant workmen
will be required to be registered with registering officers appointed
under the Central Government or the State Governments, as the case
may be, depending on whether the establishment falls under the Central
sphere or State sphere. Every principal employer of an establishment
to which this Act applies makes an application to the registering
officers for the registration of the establishment. The registration of the
principal employer is compulsory if the Inter-State Migrant Workers
are employed or intended to be employed in his establishment. The
registering officer shall register the establishment and issue a certificate

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of registration within one month after the receipt of the application

from the principal employer if the application for registration is
complete in all respects. (Sec. 3 and 4)
The Act empowers the registering officer to revoke the registration
certificate issued if he is satisfied that the registration has been obtained
by misrepresentation or suppression of any material fact or it has
become useless or ineffective for any other reasons, after giving the
principal employer an opportunity of being heard and after obtaining
prior approval of the appropriate Government. This Act also empowers
the registering officer to suspend the operation of the certificate
pending such revocation for such period as may be specified in the
order and serve the order by the registered post to the principal
employer. It must contain the reasons why such action is being taken.
(Sec. 5)
The Act prohibits the principal employer to employ Inter-State Migrant
Workmen without obtaining a certificate of registration. The Act does
not prohibit employment of Inter-State Migrant workers if the
registration application is pending before the registering officer. (Sec.
6)

Q10. Discuss sexual Harassment of Women at Workplace as a

Problem .
Sexual Harassment is one of the biggest problems our women are
facing today in different sectors of life. We rarely pass through a week
without a reminder of these kinds of incidents which should be termed
as “social problems”.
It is a growing problem and all are trying their best to combat this
problem by adopting new policies and measures. The definition of
sexual harassment varies from person to person and from jurisdiction
to jurisdiction. The definition of Sexual Harassment in simple words is
“any unwanted or inappropriate sexual attention. It includes touching,
looks, comments, or gestures”.

A key part of Sexual Harassment is that it is one sided and unwanted.

There is a great difference between Sexual Harassment and Romance
and Friendship, since those are mutual feelings of two people. Often

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Sexual Harassment makes the victim feel guilty, but it is important for
the victim to remember that it is not her fault; the fault lies totally on
the person who is a harasser. Sexual Harassment affects all women in
some form or the other. Lewd remarks, touching, wolf whistles, looks
are part of any women’s life, so much so that it is dismissed as normal.
Working women are no exception. In fact, working women most
commonly face the backlash to women taking new roles, which belong
to male domains within patriarchy. Sexual Harassment at work is an
extension of violence in everyday life and is discriminatory,
exploitative, thriving in the atmosphere of threat, terror and reprisal.
Many times fear is involved in Sexual Harassment because it isn’t
physical attraction, it’s about power. In fact, many Sexual Harassment
incidents take place when one person is in a position of power over the
other; or when a woman has an untraditional job such as police officer,
factory worker, business executive, or any other traditionally male job.
It has also been observed that there are lots of sexual harassment
incidents taking place in the workplace, but the victims fear to report
the same to the higher officials or the concerned authorities. They fear
to file a complaint against such offenders who does such heinous acts.
The fear is due to the fear of boss, fear of guilt in the society that they
might have to face, fear of being thrown out of the job or being
demoted, fear that it will jeopardize their career as in it will put a blot
on their resume and would render them un-hirable. Some women have
lack of knowledge- they do now know what exactly qualifies a sexual
harassment and fail to report the same.
Every country is facing this problem daily. No female worker is safe
and the sense of security is lacking in them. There are certain
developments in laws of many countries to protect women workers
from Sexual Harassment

Q11. Discuss the genesis of vishaka guidelines laid down by the SC

of India.

VISHAKA v. STATE OF RAJASTHAN, 1997:

A LAND MARK JUDGEMENT.

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Indian judiciary has played significant role in the evolution of industrial

jurisprudence. It has not only made a distinct contribution to laws
relating to industrial relations, social security and minimum standards
of employment but has innovated new methods and devised new
strategies for the purpose of providing access to justice to weaker
sections of society who are denied their basic rights and to whom
freedom and liberty have no meaning. Indeed, the court assumed the
role of protectionist of the weaker by becoming the court for the poor
and struggling masses of the country. Further, the courts at times played
a role of legislators where law is silent or vague. Indeed, a number of
legislation and legislative amendments have been made in response to
the call by the judiciary. The Act is one among such legislations.
The Genesis
In 1992, a rural level change agent, Bhanwari Devi, was engaged by
the state of Rajasthan as a Sathin (meaning ‘friend’) to work towards
the prevention of the practice of child marriages. During the course of
her work, she prevented the marriage of a one year old girl in the
community. Her work was met with resentment and attracted
harassment from men of that community. Bhanwari Devi reported this
to the local authority but no action was taken. That omission came at
great cost – Bhanwari was subsequently gang raped by those very men.
The Bhanwari Devi case revealed the ever-present sexual harm to
which millions of working women are exposed across the country,
everywhere and everyday irrespective of their location. It also shows
the extent to which that harm can escalate if nothing is done to check
sexually offensive behaviour in the workplace.
Based on the facts of Bhanwari Devi’s case, a Public Interest Litigation
(PIL) was filed by Vishaka and other women groups against the State
of Rajasthan and Union of India before the Supreme Court of India. It
proposed that sexual harassment be recognized as a violation of
women’s fundamental right to equality and that all workplaces/
establishments/ institutions be made accountable and responsible to
uphold these rights.
In this landmark judgment, the Supreme Court of India created legally
binding guidelines basing it on the right to equality and dignity
accorded under the Indian Constitution as well as by the UN

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Convention on the Elimination of All Forms of Discrimination against

Women (CEDAW).
It included:
• A definition of sexual harassment
• Shifting accountability from individuals to institutions
• Prioritizing prevention
• Provision of an innovative redress mechanism.
The Supreme Court defined sexual harassment as any unwelcome,
sexually determined physical, verbal, or non-verbal conduct. Examples
included sexually suggestive remarks about women, demands for
sexual favours, and sexually offensive visuals in the workplace. The
definition also covered situations where a woman could be
disadvantaged in her workplace as a result of threats relating to
employment decisions that could negatively affect her working life. It
placed responsibility on employers to ensure that women did not face
a hostile environment, and prohibited intimidation or victimization of
those cooperating with an inquiry, including the affected complainant
as well as witnesses.
It directed for the establishment of redressal mechanism in the form of
Complaints Committee, which will look into the matters of sexual
harassment of women at workplace. The Complaints Committees were
mandated to be headed by a woman employee, with not less than half
of its members being women and provided for the involvement of a
third party person/ NGO expert on the issue, to prevent any undue
pressure on the complainant. The guidelines extended to all kinds of
employment, from paid to voluntary, across the public and private
sectors.
Vishaka established that international standards/ law could serve to
expand the scope of India’s Constitutional guarantees and fill in the
gaps wherever they exist. India’s innovative history in tackling
workplace sexual harassment beginning with the Vishaka Guidelines
and subsequent legislation has given critical visibility to the issue.
Workplaces must now own their responsibility within this context and
ensure that women can work in safe and secure spaces.
Apparel Export Promotion Council v. A.K Chopra, (1999) 1 SCC
759

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The Vishaka judgment initiated a nationwide discourse on workplace

sexual harassment and threw out wide open an issue that was swept
under the carpet for the longest time. The first case before the Supreme
Court after Vishaka in this respect was the case of Apparel Export
Promotion Council v. A.K Chopra. In this case, the Supreme Court
reiterated the law laid down in the Vishaka Judgment and upheld the
dismissal of a superior officer of the Delhi based Apparel Export
Promotion Council who was found guilty of sexually harassing a
subordinate female employee at the workplace. In this judgment, the
Supreme Court enlarged the definition of sexual harassment by ruling
that physical contact was not essential for it to amount to an act of
sexual harassment.
The Supreme Court asserted that in case of a non-compliance or
nonadherence of the Vishaka Guidelines, it would be open to the
aggrieved persons to approach the respective High Courts.
National Legislative Frameworks
In India, the Vishaka Guidelines was the first ever legal action that
provided a broad framework for preventing and addressing cases of
sexual harassment of women within the workplace. It recognized that
sexual harassment of women in the workplace resulted in the violation
of their fundamental rights of gender equality, right to life and liberty,
and the right to carry out any occupation, trade or profession.

Q12. Is sexual harassment violation of Fundamental Rights

guaranteed under the Indian Constitution explain.

Sec 2 (n) “sexual harassment” includes any one or more of the

following unwelcome acts or behaviour (whether directly or by
implication) namely :-
(i) physical contact and advances; or (ii) a demand or request for sexual
favours; or (iii) making sexually coloured remarks; or (iv) showing
pornography; or (v) any other unwelcome physical, verbal or
nonverbal conduct of sexual nature;
Since sexual harassment of women at employment place is against the
principle of gender equality, it is violation of the fundamental right,

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particularly Articles 14, 15 of the Constitution which enshrined

principles i.e., equality before law and prohibition of discrimination on
grounds of religion, race, caste, sex and place of birth. Such sexual
harassment also violates Article 21 of the Constitution which deals with
the protection of life and personal liberty.
As the Supreme Court observed in Vishaka v. State of Rajasthan supra
that in the absence of domestic law occupying the field to formulate
effective measures to check the evil of sexual harassment of working
women at all work places, the contents of International Conventions
and norms are significant for purpose of interpretation of the guarantee
of gender equality, right to work within human dignity in Articles 14,
15, 19(1) (g) and 21 of the Constitution and the safeguards against
sexual harassment implicit therein. Any International Convention not
inconsistent with the fundamental rights and in harmony with its spirit
must be read into these provisions to enlarge the meaning and content
thereof to promote the object of the constitutional guarantee. This is
implicit in Article 51(c) and the enabling power of the Parliament to
enact laws for implementing the International Conventions and norms
by virtue of Article 253 read with Entry 14 of the Union List in 7th
Schedule of the Constitution. Article 73 also is relevant. It provides that
the executive power of the Union shall extend to the matters with
respect to which Parliament has power to make laws. The executive
power of the Union is, therefore, available till the Parliament enacts
legislation to expressly provide measures needed to curb the evil.

The power of Supreme Court under Article 32 for enforcement of the

fundamental rights and the executive power of the Union have to meet
the challenge to protect the working women from sexual harassment
and to make their fundamental rights meaningful. Governance of the
society by the rule of law mandates this requirement as a logical
commitment of the Constitutional scheme.
The meaning and content of the fundamental rights guaranteed in the
Constitution of India are of sufficient amplitude to encompass all the
facets of gender equality including prevention of sexual harassment or
abuse.

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Q13. Explain the committees under sexual harassment act of 2013

Internal Complainants Committee (Sec. 4)

Section 4 provides elaborated provisions for constitution of Internal
Complainants Committee (ICC) imposing statutory obligation on every
employer of a workplace to constitute the said committee for the
purpose of effective implementation of the object of the Act. The
committee has to be constituted at each office or branch with 10 or
more employees. The committee will be headed by a senior-level
woman employee. Details of the committee and members must be
displayed at the workplace. All employers must provide necessary
facilities for the ICC to deal with the complaint and to conduct an
inquiry. Each ICC is required to prepare an annual report to the
employer.
The committee must have not less than two members from amongst
employees who are committed to the cause of women, or have
experience in social work or have a good legal knowledge. One
member must be from an NGO or such Association. At least half of the
committee must comprise women. In case of establishments with less
than ten members and no complaints committee, the appropriate
government must constitute a Local Complaints Committee in every
district.

Local Complaints Committee (Sec. 5-8)

Central and State Governments are mandated to notify either of the
following individuals to be a District Officer for each District to
implement the requirements under the Act:
• District Magistrate • Additional District Magistrate • Collector •
Deputy Collector.
Every District Officer must constitute a Local Complaints Committee
(LCC) to receive complaints of sexual harassment from establishments
where the Internal Complaints Committee (ICC) has not been
constituted due to having less than 10 employees or if the complaint is
against the employer himself.
Each LCC is required to prepare an annual report and submit it to the
District Officer. The District Officer must designate one nodal officer

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in every block, taluka and tehsil in rural or tribal area and ward or
municipality in the urban area, to receive complaints and forward it to
the concerned LCC within 7 days.

Q14. Discuss the provisions regarding the procedure for trial under
the bonded labour act.

Sec 16. Punishment for enforcement of bonded labour.-any person,

after the commencement of this Act, compels any person to render any
bonded labour shall be punishable with imprisonment for a term which
may extend to three years and also with fine which may extend to two
thousand rupees.
Punishment for compelling any person to rendor any bonded labour is
imprisonment for three years and a fine of two thousand rupees-
Sec 17. Punishment for advancement of bonded debt.-Whoever
advances, after the commencement of this Act, any bonded debt shall
be punishable with imprisonment for a term which may extend to three
years and also with fine which may extend to two thousand rupees. Sec
18. Punishment for extracting bonded labour under the bonded labour
system.- Whoever enforces after the commencement of this Act, any
custom, tradition, contract, agreement or other instrument, by virtue of
which any person or any member of the family of such person or any
dependent of such person is required to render any service under the
bonded labour system, shall be punishable with imprisonment for a
term which may extend to three years and also with fine which may
extend to two thousand rupees; and, out of the fine, if recovered,
payment shall be made to the bonded labourer at the rate of rupees five
for each day for which the bonded labour was extracted from him. Sec
19. Punishment for omission or failure to restore possession of property
to bonded labourers.-Whoever, being required by this Act to restore
any property to the possession of any bonded labourer, omits or fails to
do so, within a period of thirty days from the commencement of this
Act, shall be punishable with imprisonment for a term which may
extend to one year, or with fine which may extend to one thousand
rupees, or with both; and, out of the fine, if recovered, payment shall

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be made to the bonded labourer at the rate of rupees five for each day
during which possession of the property was not restored to him ;
Sec 20. Abetment to be an offence. Whoever abets any offence
punishable under this Act shall, whether or not the offence abetted is
committed, be punishable with the same punishment as is provided for
the offence which has been abetted.
Explanation.-For the purpose of this Act, "abetment" has the meaning
assigned to it in the Indian Penal Code (45 of 1860).
Sec 21. Offences to be tried by Executive Magistrates.-(1) The State
Government may confer, on an Executive Magistrate, the powers of a
Judicial Magistrate of the first class or of the second class for the trial
of offences under this Act; and, on such conferment of powers, the
Executive Magistrate on whom the powers are so conferred, shall be
deemed, for the purposes of the Code of Criminal Procedure, 1973 (2
of 1974), to be a Judicial Magistrate of the first class, or of the second
class, as the case may be. (2) An offence under this Act may be tried
summarily by a Magistrate.
Sec 22. Cognizance of offences.-Every offence under this Act shall be
cognizable and bailable.
Sec 23. Offences by companies. (1) Where an offence under this Act
has been committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be liable
to be proceeded against and punished accordingly. (2) Notwithstanding
anything contained in sub-section (1), where any offence under this
Act, has been committed by a company and it is proved that the offence
has been committed with the consent or connivance of, or is attributable
to, any neglect on the part of, any director, manager, secretary or other
officer of the company, such director, manager, secretary or other
officer shall be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly.
According to S. 25 of the Act, no civil court shall have jurisdiction in
respect of any matter to which any provision of this Act applies and no
injunction shall be granted by any civil court in respect of anything
which is done or intended to be done by or under this Act.

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Q15. What is minimum wages & explain the theories & its kinds

Minimum wages means

Some of the most important theories of wages are as follows:
1. Wages Fund Theory
2. Subsistence Theory
3. The Surplus Value Theory of Wages
4. Residual Claimant Theory
5. Marginal Productivity Theory 6. The Bargaining Theory of Wages
7. Behavioural Theories of Wages.
How much and on which basis wages should be paid to the workers for
services rendered by them has been a subject matter of great concern
among economic thinkers for a long time This has given birth to several
wage theories, i.e. how wages are determined. Out of them, some
important theories of wages are discussed here.
1. Wages Fund Theory:
This theory was developed by Adam Smith (1723-1790). His theory
was based on the basic assumption that workers are paid wages out of
a pre-determined fund of wealth. This fund, he called, wages fund
created as a result of savings. According to Adam Smith, the demand
for labour and rate of wages depend on the size of the wages fund.
Accordingly, if the wages fund is large, wages would be high and vice
versa.
2. Subsistence Theory:
This theory was propounded by David Recardo (1772-1823).
According to this theory, “The labourers are paid to enable them to
subsist and perpetuate the race without increase or diminution”. This
payment is also called as ‘subsistence wages’. The basic assumption of
this theory is that if workers are paid wages more than subsistence
level, workers’ number will increase and, as a result wages will come
down to the subsistence level.
On the contrary, if workers are paid less than subsistence wages, the
number of workers will decrease as a result of starvation death;

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malnutrition, disease etc. and many would not prefer to marry. The
subsistence wages refers to minimum wages.
3. The Surplus Value Theory of Wages:
This theory was developed by Karl Marx (1849-1883). This theory is
based on the basic assumption that like other article, labour is also an
article which could be purchased on payment of its price i e wages. This
payment, according to Karl Marx, is at subsistence level which is less
than in proportion to time labour takes to produce items. The surplus,
according to him, goes to the owner. Karl Marx is well known for his
advocating in the favour of labour.
4. Residual Claimant Theory:
This theory owes its development to Francis A. Walker (1840-1897).
According to Walker, there are four factors of production or business
activity, viz., land, labour, capital, and entrepreneurship. He views that
once all other three factors are rewarded what remains left is paid as
wages to workers. Thus, according to this theory, worker is the residual
claimant.
5. Marginal Productivity Theory:
This theory was propounded by Phillips Henry Wick-steed (England)
and John Bates Clark of U.S.A. According to this theory, wages is
determined based on the production contributed by the last worker, i.e.
marginal worker. His/her production is called ‘marginal production’.
6. The Bargaining Theory of Wages:
John Davidson was the propounder of this theory. According to this
theory, the fixation of wages depends on the bargaining power of
workers/trade unions and of employers. If workers are stronger in
bargaining process, then wages tends to be high. In case, employer
plays a stronger role, then wages tends to be low.
7. Behavioural Theories of Wages:
Based on research studies and action programmes conducted, some
behavioural scientists have also developed theories of wages. Their
theories are based on elements like employee’s acceptance to a wage
level, the prevalent internal wage structure, employee’s consideration
on money or’ wages and salaries as motivators.

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KINDS OF WAGES
Wages can broadly be divided into three categories ie Living Wages,
Minimum Wages and Fair Wages.

1. LIVING WAGES:
Living wages means the wages that may be sufficient to provide for the
bare necessities as well as certain amenities for the employee. It means
the level of wages that may be sufficient to provide for the bare
necessities and such amenities that are considered necessary for the
well-being of the employee and his family members in accordance with
his social status.
Article 43 of the Constitution of India 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 decent standard of
life and full enjoyment of leisure and social and cultural opportunities.

The term Living Wages has been defined as, the Fair Wage Committee
Report, “The living wage should enable the male earner to provide
himself and his family not merely the base essentials of food, clothing
and shelter but a measure of frugal comfort including education for the
children, protection against ill health, requirements of essential social
needs, and measures of insurance against the more import misfortunes
against old age.”
These Standards of Living are classified as Follows:
1. Minimum Subsistence Level:
When an employee gets the remuneration enough only for providing
the bare necessities for himself and his family members, is called
minimum subsistence level. In this situation, the remuneration of an
employee can meet only the bare requirements for himself and his
family members. 2. Comfortable Level:
When an employee can provide for all the bare necessities and can
enjoy all the amenities, it is called comfortable level, in this case, the
remuneration of an employee is so high that he can provide for all the

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bare necessities and meet all the requirements of comfort for himself
and his family members.
3. Poverty Level:
When an employee is unable in providing for bare necessities also for
himself and his family members, this situation is known as poverty. In
this situation, the remuneration of an employee is less than he requires
for providing food, clothes and shelter for himself and his family
members.
4. Semi-Comfortable Standard of Living:
When the remuneration of an employee is sufficient for providing the
bare necessities and meeting social needs, it is called Semi-comfortable
level. In this case the employee can provide for the basic needs of
clothes, food, and shelter for himself and his family members. Besides
he can meet his social needs also such as—maintenance, education of
children, travelling, insurance and recreation etc.
On the basis of above classification, the adequate wage in India can be
determined easily. In the present economic conditions of our country,
Semi-comfortable level can be taken as the basis of wage
determination. The wages of employees should enable them to
maintain their efficiency.
2. FAIR WAGES:
It is very difficult to give a precise definition of Fair Wages because it
varies from country to country and from time to time. Therefore, it is
possible that an amount of wages that is fair for one country at one time
may not be fair for another country or for next time. Therefore, fair
wages can be determined only after considering the specific
circumstances of the industry for which the wages are to be determined.
The term ‘Fair Wages’ has been defined as under:
Encyclopaedia of Social Sciences, “Fair wages mean the remuneration
which is paid to the workers for the jobs requiring equal efficiency,
difficulty and pains.”
On the basis of analytical study of above definitions, it can be
concluded that Fair Wages is the amount of wages that may provide the
basic needs and amenities to the workers according to their social
status.

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Fair Wage is more than minimum wages. Fair Wage is determined after
considering several factors such as the wages paid for similar work in
other trades and industries requiring same amount of ability and
adjustment, productivity of the labour and paying capacity of the
industry. Fair Wage is determined between the lower and upper limits.
The lower limit of wage is the minimum wage and the upper limit is
the capacity of the industry to pay.
Norms for the Fixation of Minimum Wages:
The 15th Indian Labour Conference considered the question of
minimum wage and adopted a resolution, the relevant portion of which
is reproduced below:
With regard to the minimum wage fixation it was agreed that the
minimum wage was need based” and should ensure the minimum
human need of the industrial worker, irrespective of any other
considerations. To calculate the minimum wage, the following should
be taken into consideration.
(i) In calculating the minimum wage, the standard of working class
family should be taken to consist of three consumption units for
earners; the earnings of women, children and adolescents should
be disregarded.
(ii) Minimum food requirements.
(iii) Clothing requirements
(iv) In respect of housing, houses provided under the Subsidised
Industrial Housing Scheme for low income groups.
(v) Fuel, lighting and other, “Miscellaneous” items of expenditure
should constitute 20 per cent of the total minimum wage.

3. MINIMUM WAGES:
According to Fair Wages Committee, “Minimum Wages should
provide not only for the bare necessities of a worker. It should also
provide for the maintenance of efficiency of the worker. From this
point of view, minimum wages must be sufficient to provide for all
requirements of education, health and other essential amenities”.
Minimum Wages means the minimum payment to worker so that he
may be able in providing for basic needs for himself and his family
members and to maintain his working efficiency only. Some other

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scholars are of the view that minimum wages should also provide for
minimum education, medical facilities and other amenities. According
to them, minimum wages should ensure a minimum standard of living
considering the health, efficiency and well-being of the worker.
What should be the amount of fair wages is a question for which no
specific answer can be given. It depends upon the economic, social and
geographical factors of the country. Besides, it depends upon the size
and paying capacity of the enterprise also.
However, it can be said that minimum wages is the amount that is
enough for providing basic needs of the worker and his family and to
enable him to maintain his efficiency.

Q16. Explain the procedure for fixing & revising minimum rate of
wages .

Section 3: Fixation of minimum rates of wages:

Appropriate Government shall fix the minimum rates of wages in
respect of the employment specified in Part-I or II of the Schedule and
review at such intervals not exceeding (5) years, to revise the wages.
Section 4: Minimum rate of wages:
The Minimum rate of wage may consist of basic rate of wage and
special allowance (cost of living allowance) to be notified by the
commissioner of labour once in six months effective 1st April and 1st
October.
Section 5: Minimum rate of wages:
Procedure for fixing and revising minimum wages
(a) Appoint as many committees and sub-committees as it considers
necessary to hold enquiries and advise it in respect of such fixation or
revision, as the case may be, or
(b) By notification in the Official Gazette, publish its proposals for
the information of persons likely to be affected thereby and specify a
date, not less than two months from the date of the notification, on
which the proposals will be taken into consideration.

Procedure for fixing and revising minimum wages.

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(1) In fixing minimum rates of wages in respect of any scheduled

employment for the first time under this Act or in revising minimum
rates of wages so fixed, the appropriate Government shall either, (a)
Appoint as many committees and sub-committees as it considers
necessary to hold enquiries and advise it in respect of such fixation or
revision, as the case may be, or
(b) By notification in the Official Gazette, publish its proposals for the
information of persons likely to be affected thereby and specify a date,
not less than two months from the date of the notification, on which the
proposals will be taken into consideration.
RECOMMENDATIONS AND SUGGESTIONS REGARDING
NORMS FOR FIXATION AND REVISION OF MINIMUM
WAGES,
There are no norms prescribed for fixing/revising minimum rates of
wages so far under Minimum Wages Act, 1948 and the Act is silent on
the point of gradation of wages according to the Skill level.
The Indian labour conference in the year 1957, the Indian Labour
Conference has recommended to adopt the following 5 elements while
fixing minimum wages:-
1) For the purpose of fixation of minimum wages, a family is taken, as
a norm, to include three units (one earner, wife and children) 2) Dr.
Aykrovd’s prescription of the average of 2700 calories of nutrition may
be taken as the standard for calculating the minimum nutritional
requirements.
3) Provision of 72 yards of cloth by considering a family as four
units in connection with the requirements of 18 yards of cloth per
capita, per annum.
4) For the purposes of fixation of house rent, the rates of rent granted
by Industrial Housing Plan may be considered.
5) 20 per cent of the minimum wages may be ear-marked for
meeting the expense on fuel, light and other ancillaries.
The Hon’ble Supreme Court in the case of Reptakos Brett and Co.
Ltd., while affirming the use of the five above norms prescribed in the
15th Indian Labour conference for fixation of Wage has directed that
keeping in view the Socio economic aspect “25% of the Total minimum
wages shall also be taken into account for Children education,

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medical requirement, minimum recreation including

festivals/ceremonies and provision for old age, marriage etc.,” The
above norms are only useful for arriving the wage for the lowest
category worker.
THE GUIDELINES OF GOVERNMENT OF INDIA
The Principal Advisor, Planning Commission, Government of India,
New Delhi in his letter dated 18-09-2006 had informed that it is
proposed to have the wage differential at 15 per cent between unskilled
to Semi- Skilled and semi-skilled to Skilled. He has also stated that in
the year 1999-2000 a study on the pay differences was carried out
through job Evaluation Technique and it was proposed to have pay
difference 19- 20 percent between Unskilled to Semi-Skilled and 1213
percent between Semi Skilled to Skilled.
10 NATIONAL FLOOR LEVEL WAGE FIXED BY THE
GOVERNMENT OF INDIA
The Government of India has stated that while reviewing the movement
of Consumer Price Index for Industrial Workers (CPI-IW) during
October 2012 to March, 2013 over the period October 2010 to March
2011, it was observed that the National Floor Level Minimum Wage
has been revised upwards from Rs.115/- to Rs.137/- per day w.e.f
01.07.2013. The minimum wage of the lowest categories in all
scheduled employments reached the National Floor Level in Andhra
Pradesh. It is, however, clarified that the National Floor Level
Minimum Wage, is a non-statutory measure to ensure upward revision
of minimum wages in different in States & union territories. Thus, the
State Governments are persuaded to fix minimum wages such that in
none of the scheduled employments, the minimum wage is less than
National Floor Level Minimum Wage. This method has helped in
reducing disparity among different rates of minimum wages to some
extent.
Commissioners of Labour, Deputy Commissioners of Labour and Joint
Commissioners of Labour as Inspectors under Section- 19 in their
respective jurisdictions. The inspector under the Act is responsible to
ensure payment of minimum wages by conducting regular inspections.
He should verify maintenance of certain registers like muster roll and
wages register and to secure to every employee a wage slip every

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month. Department under Payment of Wages Act, 1936 and the

provisions of Payment of Wage Department to all establishments
engaged in scheduled employments, all factories, all industries and all
shops and establishments. It is required to pay wages to every employee
by remittance in the bank account of the employee in accordance with
the said and the inspectors under the Act should ensure the same
towards simplification of enforcement.

Q17. What is bonus explain the provision relating to maximum

amount of bonus payable.

Bonus means profit sharing. The bonus act provides for the payment of
bonus to persons employed in certain establishments on the basis of
profits or on the basis of production or productivity and for matters
connected therewith. Sec 8. Eligibility for bonus.
Every employee shall be entitled to be paid by his employer in an
accounting year, bonus, in accordance with the provisions of this Act,
provided he has worked in the establishment for not less than thirty
working days in that year. Sec 9. Disqualification for bonus.
Notwithstanding anything contained in this Act, an employee shall be
disqualified from receiving bonus under this Act, if he is dismissed
from service for
(a) Fraud; or
(b) Riotous or violent behaviour while on the premises of the
establishment; or
(c) Theft, misappropriation or sabotage of any property of the
establishment.
The provision for paying maximum bonus is provided under, sec 11.
Payment of maximum bonus.
(1) Where in respect of any accounting year referred to in section 10,
the allocable surplus exceeds the amount of minimum bonus payable
to the employees under that section, the employer shall, in lieu of such
minimum bonus, be bound to pay to every employee in respect of that
accounting; year bonus which shall be an amount in proportion to the

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salary or wage earned by the employee during the accounting year

subject to a maximum of twenty per cent, of such salary or wage.
(2) In computing the allocable surplus under this section, the amount
set on or the amount set off under the provisions of section 15 shall be
taken into account in accordance with the provisions of that section.

Q18. Explain the provision relating to determination of amount of

gratuity.

Section 7 ,Duty to Pay Gratuity (Determination of the amount of grat

uity)
(1) A person who is eligible for payment of gratuity under this A ct
orAny
Person authorised, in writing to acton his behalf shall send a
written application to the employer, within such time and in such
form, as may be prescrib ed,for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, determin
e the amount of
gratuity and give notice in writing tothe person to whom the gratuity is
payable and also to the controlling authority specifying the amount of
gratuity sod etermined.
(3) The employer shall arrange to pay the amount of gratuity within
thi rty days from the date it becomes payable to theperson to whom the
gratuity is payable. (4) If the amount of gratuity payable is not paid by
the employer withi n the period of 30
days , the employer shall pay,from the date on which the gratuity beco
mes payable
to the date on which it is paid, simple interest at such rate, notexceedi
ng the rate
notified by the Central Government from time to time for repayment of
long-term
[Link] such interest shall be payable if the delay in the pa
yment is due to the fault of the employee and the employer hasobtained
permission in writing f rom the controlling authority for the delayed

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payment on this ground. (5) If there is any dispute to the amount of

gratuity payable to an empl oyee under this
Act or as to the admissibility ofany claim of, or in relation to, an e
mployee for
payment of gratuity, or as to the person entitled to receive the gratuity,t
he employer shall deposit with the controlling authority such amount
as he admits t o be payable by him as gratuity.

Where there is a dispute the employer or employee or any other pers on

raising the dispute may make an application to the controlling authority
for deciding the dispute. The
controlling authority shall, after due inquiry and after giving the parties
to the dispute a
reasonable opportunity of being heard, determine the matter or matter
s in dispute and if, as a result of such inquiry any amount is found to be
payable to the employe e, the controlling authority shall direct
theemployer to pay such amount or, as the case may be, such amount
as reduced by the amount already deposited bythe employer.
The controlling authority shall pay the amount deposited, including th
e excess amount, if any, deposited by theemployer, to the person
entitled thereto. As soon as may be after a deposit is made the
controlling authority sha ll pay the amount of the deposit—
(i) To the applicant where he is the employee; or
(ii) Where the applicant is not the employee, to the nominee or, a s
the case may be, the guardian of such nominee or heir of the
employee if the controlling authority is
satisfied that there is no dispute as to the right of theapplicati on
to receive the amount of gratuity.
In H. Gangahanume Gowda V/S Karnataka Agro Industries
Corporation Ltd , (2003, SCC 257) where the appellant was under
suspension from 15/3/1999 to 21/5/1999 on attaining the age of
Superannuation & he retired from the service of the respondents
corporation on 1/1/2000 & payment of gratuity was not made . the
court held that the employer to pay gratuity u/sec7 & 8 of the act, the
employer whether any application has been made or not is obliged to
make determination of gratuity & give notice to the employee, &

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arrange the payment of gratuity to the employee to whom the amount

is due within 30 days from the date it becomes payable till the date it
is payed a simple interest as specified by the central Govt if repayment
for long time due. The employer is not entitled to pay on the fault of
the employee & the employer has obtained permission to do so in
writing from the controlling Authority for the delayed payment. Q19.
Discuss the provisions relating to recovery of gratuity under the
gratuity act.

Section 8: Recovery of gratuity.

If the amount of gratuity payable under this Act is not paid by the
employer, within
the prescribed time, to the personentitled thereto, the controlling
authorit
y shall, on an application made to it in this behalf by the aggrieved
person, issue a certificate for that amount to the
Collector who shall recover the same, together with compound intere
st thereon atsuch
rate as the Central Government may, by notification, specify, from the
date of expiry of the prescribed time asarrears of land revenue and pay
the same to the perso n entitled [Link] that the controlling
authority shall,before iss uing a certificate under this section, give the
employer a reasonable op portunity of showing causeagainst the issue
of such certificate. Provided further that the amount of interest payable
under this sectio
n shall, in no case exceed the amount of gratuity payable under this
Act. Section 9: Penalties.
(1) Whoever, for the purpose of avoiding any payment to be made b
y himself under
this Act or of enabling any otherperson to avoid such payment, knowi
ngly makes or causes to be made any false statement or false
representat ion shallbe punishable with imprisonment for a term which
may exten d to six months or with fine which may extend to
tenthousand rupees or with both.

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(2) An employer who contravenes, or make default in complying w

ith, any of the provisions of this Act or anyrule or order made thereun
der shall be punishable with
imprisonment for a term which shall not be less than three monthsbut
which may
extend to one year, or with fine which shall not be less than ten thous
and rupees but which may extend to twenty thousand rupees, or
with both.

Provided that where the offence relates to non-payment of any gratuity

payable under this Act, the employer shall be punishable with
imprisonment, for a term which shall not be less than six months but
which may extend to two years unless the Court trying the offence, for
reasons to be recorded by it in writing, is of opinion that a lesser term
of imprisonment or the imposition of a fine would meet the ends of
justice.

Q20. Under what circumstances the employer is exempted from

paying gratuity under the act.

Sec10, states about the exemption of employer from liability in certain

cases.- Where an employer is charged with an offence punishable under
this Act, he shall be entitled, upon complaint duly made by him and on
giving to the complainant not less than three clear days' notice in
writing of his intention to do so, to have any other person whom he
charges as the actual offender brought before the Court at the time
appointed for hearing the charge; and if, after the commission of the
offence has been proved, the employer proves to the satisfaction of the
Court-
(a) That he has used due diligence to enforce the execution of this
Act; and
(b) That the said other person committed the offence in question
without his knowledge, consent or connivance, that other person shall
be convicted of the offence and shall be liable to the like other
punishment as if he were the employer and the employer shall be
discharged from any liability under this Act in respect of such offence,

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Provided that in seeking to prove as aforesaid, the employer may be

examined on oath and his evidence and that of any witness whom he
calls in his support shall be subject to cross examination on behalf of
the person he charges as the actual offender and by the prosecutor ,
Provided further that, if the person charged as the actual offender by
the employer cannot be brought before the Court at the time appointed
for hearing the charge, the Court shall adjourn the hearing from time to
time for a period not exceeding three months and if by the end of the
said period the person charged as the actual offender cannot still be
brought before the Court, the Court shall proceed to hear the charge
against the employer and shall, if the offence be proved, convict the
employer.

Q21. Explain the constitutional provisions regarding child labour

A child is a person who is below the age of 14 yrs of age. Child is been
defined under sec 2(ii) of the child labours act 1986. A "child" means
a person who has not completed his fourteenth year of age ;

Legal definition of child, Section 2 (2) of Shops and Establishment act

– 1948 states that child is a person who hasn’t completed 15 years of
his age.

Article 45 of the Constitution of India defines child as a person younger

than 14 years.
Mines Act – 1952 says that a child is a person not older than 16 years.
According to the Suppression of Immoral Traffic in Women and Girls
Act 1956, a child is a person who is not 21 Years old.
According to the Juvenile Justice (care and Protection of a Child) Act,
a child is a person who has not completed18 years of age. LAW
DEFINES CHILD LABOUR AS under the Act, „Child‟ means a
person who has not completed his fourteenth year of age. Any such
person engaged for wages, whether in cash or kind, is a child worker.
According to UNICEF, all the children not being provided education at
a school are considered as Child Labours.

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International conventions define children as people aged 18 and under.

Individual governments may define "child" according to different ages
or other criteria. "Child" and "childhood" are also defined differently
by different cultures. A "child" is not necessarily defined by a fixed
age. Social scientists point out that children’s abilities and maturities
vary so much that defining a child’s maturity by calendar age can be
misleading.
Constitutional provisions regarding child labour:
Several articles of Indian Constitution provide protection and
provisions for child labour.
Article 15 (3) The State is empowered to make the special provisions
relating to child, which will not be violative of right to equality. Article
21 No person shall be deprived of his life or personal liberty, except
according to procedure established by law. The Supreme Court held
that „life‟ includes free from exploitation and to live a dignified life.
Article 21A (Right to Education) The State shall provide free and
compulsory education to all children of the age of six to fourteen years,
in such manner as the State may, by law, determine. Where children
are allowed to work, in such establishment, it is the duty of employer
to make provisions for the education of child labourer.
Article 23 Traffic in human beings and beggar and other similar forms
of forced labour are prohibited and any contravention of this
prohibition shall be an offence punishable in accordance with law.
Article 24 (Prohibition of Employment of Children in Factories, etc.)
No child below the age of 14 years shall be employed to work in any
factory or mine or engaged in any other hazardous employment. The
Supreme Court held that “hazardous employment” includes
construction work, match boxes and fireworks therefore; no child
below the age of 14 years can be employed. Positive steps should be
taken for the welfare of such children as well as for improving the
quality of their life.
Article 39 (e) The State shall, in particular, direct its policy towards
securing the health and strength of the tender age of children are not
abused and that citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength.

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Article 39 (f) The State shall, in particular, direct its policy towards
securing 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 45 The State shall endeavour to provide early childhood care
and education for all children until they complete the age of six years.
Article 51A(e) It shall be the duty of every citizen of India, who is a
parent or guardian to provide opportunities for education to his child or
ward as the case may be, between the age of six and fourteen years.
BandhuaMuktiMorcha Vs Union of India (AIR 1984 SC 802) In
this case the Supreme Court of India stated that if no steps are taken
under Bonded Labour System Act – 1976 by the Government then it
would be a violation of Article 23 of the Constitution. Article 23 states
that children should not be forced to work at cheap wages due to their
economical or social disadvantage.
M. C. Metha Vs State of Tamil Nadu, 1991 The Supreme Court has
not allowed children to work in a prohibited occupation. According to
the judges, "the provisions of Article 45 in the Directive Principles of
State Policy has still remained a far cry and according to this provision
all children up to the age of 14 years are sponsored to be in school,
economic necessity forces grown up children to seek employment.

Q22. Explain the rights available to child labour .

Rights of Children under National Laws:

India has also taken effective measure under national level. In order to
eliminate child labour, India has brought constitutional, statutory
development measures. The Indian constitution has consciously
incorporated provisions to secure compulsory elementary education as
well as the labour protection for the children. Labour commission in
India have gone into the problems of child labour and have made
extensive recommendations.

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The constitution of India too provides certain rights to children and

prohibits child labour such provisions are as follows:
1. No child below the age of 14 years shall be employed in any factory
or mine or engaged in any other hazardous work.
[Link] in particular shall direct its policy towards securing that the
health and strength of workers, men and women and the tender age of
the children are not abused and that citizen are not forced by economic
necessity to enter vocations unsuited to their age or strength.
3. Children are given opportunities and facilities to develop in a
healthy manner and in conditions of freedom and the dignity and that
childhood and youth are protected against exploitations and against
moral and material abandon.
4. The state shall endeavour to provide, within the period of 10 years
from the commencement of constitution, free and compulsory
education for all children until they complete the age of 14 years.
5. The state shall provide free and compulsory education to all
children between the ages of 6 to 14 years as such a manner as the state
may by law determine.
6. Who is parent or guardian to provide opportunities for education
to his child or the case may be, ward between the age of six and
fourteen years.
There are wide range of laws, which guarantee the substantial extent
the rights and entitlement as provided in the constitution and in the UN
convention.
Some of them are given below:
1. The apprentices Act 1861
2. The child labour Act 1986
3. The child marriage restraint act 1929
4. The children (pledging of labour) Act 1929
5. Children Act 1960
6. The guardian and wards Act 1890
7 .The Hindu minority and guardianship Act 1956
8 .The Hindu Adoption and maintenance Act 1956
9. The Immoral Traffic (prevention) Act 1956
10. Juvenile justice Act 1986

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11. The Orphanages and other charitable Homes (supervision and

control) Act 1960
12. Probation and offenders Act 1958
13. Reformatory schools Act 1857
14. The women's and children's institutions (licensing) Act 1956
15. The young persons (harmful publications) Act 1956

Q23. Discuss the provisions regarding prohibition of appointment

of Child Labour under the Child Labour Act 1986.

Section 3-6 of the act deals with the provisions of prohibition of

appointment of Child Labour .

Sec 3. Prohibition of employment of children in certain occupations

and processes.

No child shall be employed or permitted to work in any of the

occupations set forth in Part A of the Schedule or in any workshop
wherein any of the processes set forth in Part B of the Schedule is
carried on :

Provided that nothing in this section shall apply to any workshop

wherein any process is carried on by the occupier with the aid of his
family or to any school established by, or receiving assistance or
recognition from, Government.

Sec 4of the act states about the Power to amend the Schedule.

The Central Government, after giving by notification in the Official

Gazette, not less than three months' notice of its intention so to do, may,
by like notification, add any occupation or process to the Schedule and
thereupon the Schedule shall be deemed to have been amended
accordingly.

Sec 5 of the act states about Child Labour Technical Advisory

Committee, constructed under the act ,

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(1) The Central Government may, by notification in the Official

Gazette, constitute an advisory committee to be called the Child Labour
Technical Advisory Committee (hereafter in this section referred to as
the Committee) to advise the Central Government for the purpose of
addition of occupations and processes to the Schedule.

(2) The Committee shall consist of a Chairman and such other

members not exceeding ten, as may be appointed by the Central
Government.

(3) The Committee shall meet as often as it may consider necessary

and shall have power to regulate its own procedure.
(4) The Committee may, if it deems it necessary so to do, constitute
one or more sub-committees and may appoint to any such sub-
committee, whether generally or for the consideration of any particular
matter, any person who is not a member of the Committee.

(5) The term of office of, the manner of filling casual vacancies in
the office of, and the allowances, if any, payable to, the Chairman and
other members of the Committee, and the conditions and restrictions
subject to which the Committee may appoint any person who is not a
member of the Committee as a member of any of its sub-committees
shall be such as may be prescribed.

Q24. Liability on employing child labour.

Section 14 of the child labour act talks about penalties on appointment

of children at work under the legislation.

(1) Whoever employs any child or permits any child to work in

contravention of the provisions of Section 3 shall be punishable
with imprisonment for a term which shall not be less than three
months but which may extend to one year or with fine which shall
not be less than ten thousand rupees but which may extend to twenty
thousand rupees or with both.

(2) Whoever, having been convicted of an offence under Section 3,

commits a like offence afterwards, he shall be punishable with

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imprisonment for a term which shall not be less than six months but
which may extend to two years.

(3) Whoever, (a) fails to give notice as required by Section 9, or

(b) Fails to maintain a register as required by Section 11 or

makes any false entry in any such register ; or
(c)Fails to display a notice containing an abstract of Section 3 and
this section as required by Section 12 ; or
(d) fails to comply with or contravenes any other provisions of
this Act or the rules made there under, shall be punishable with
simple imprisonment which may extend to one month or with fine
which may extend to ten thousand rupees or with both.
Under sec 15, it consists modified application of certain laws in relation
to penalties.

(1)Where any person is found guilty and convicted of contravention of

any of the provisions mentioned in sub-section (2), he shall be liable to
penalties as provided in sub-sections (1) and (2) of Section 14 of this
Act and not under the Acts in which those provisions are contained.

(2) The provisions referred to in sub-section (1) are the provisions

mentioned below:

(a) Section 67 of the Factories Act, 1948 (63 of 1948) ;

(b) Section 40 of the Mines Act, 1952 (35 of 1952) ;
(c) Section 109 of the Merchant Shipping Act, 1958 (44 of 1958) ;
and
(d) Section 21 of the Motor Transport Workers Act, 1961 (27 of
1961).
Sec 16 provides for procedure relating to offences.

(1) Any person, police officer or Inspector may file a complaint of

the commission of an offence under this Act in any court of competent
jurisdiction.

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(2) Every certificate as to the age of a child which has been granted
by a prescribed medical authority shall, for the purposes of this Act, be
conclusive evidence as to the age of the child to whom it relates.

(3) No court inferior to that of a Metropolitan Magistrate or a

Magistrate of the first class shall try any offence under this Act.

Q25. Explain contract labour & provisions relating to registration

of establishments under the contract labour act.

The present day and age of extensive globalisation has resulted in

people and corporate increasing their pace of production in order to
maximise their profits. This has resulted in careful cost cutting by
companies thus promoting contract labour.
Contract workers form a large part of the total workforce in India. Most
of these workers are engaged in seasonal or occasional employment as
and when they are called for. The primary sectors that mainly function
through contract labour are loading and unloading of goods and
materials; catering including canteen services; security services; civil
and construction works; electrical/ air conditioning/
painting/whitewashing; house-keeping services; computer
maintenance, etc.
Contract labourers are usually recruited through contractors who work
as a link between the actual employers and the workers.
For the purpose of securing the rights and address the welfare of
contract labourers, the Government deemed it fit to pass the Contract
Labour (Regulation and Abolition) Act 1970.
Contract Labour (Regulation and Abolition) Act, 1970 defines contract
labour as under:
“A workman shall be deemed to be employed as contract labour in or
in connection with the work of an establishment when he is hired on or
in connection with such work by or through a contractor, with or
without the knowledge of the principal employer.”
Based on the above definitions, the ingredients of contract labour may
be inferred as follows:

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That the person concerned must be a workman;

That he must be employed in or in connection with the work of an
establishment;
That the employment may be by or through a contractor; and That the
employment as such may be with or without the knowledge of the
principal employer.
Registration of establishments and licensing of contractors
Section 6 provides for the appointment of registering officers by the
appropriate Government for the purposes of this Act. If a principal
employer falls within the vicinity of this Act then, such principal
employer and the contractor will have to apply for registration of the
establishment and license respectively with the appropriate authorities.
The Act also provides for temporary registration in case the contract
labour is hired for a period not more than 15 days. Any change
occurring in the particulars specified in the Registration or Licensing
Certificate needs to be informed to the concerned Registering Officer
within 30 days of such change.
From a combined reading of Section 7 and Rules 17 & 18 of the
Contract Labour (Regulation and Abolition) Central Rules, 1971
(hereinafter referred to as the Rules), it appears that the Principal
Employer has to apply for registration in respect of each establishment.
Another important point to note is that a License issued for one contract
cannot be used for an entirely different contractual work even though
there is no change in the Establishment. The law mandates that every
establishment to which the Act applies has to register with the
registering officer. The government also has the power to prohibit
employment of contract labour in any process, operation or other work
in any establishment. The Act further stipulates that no Contractor to
whom the Act applies can undertake or execute any work through
contract labour without having a license issued by the licensing officer.
Failure to obtain a licence amounts to a criminal offence under Sections
16 to 21 of the Act read with Rules 41 to 62 of the Rules.
Sec 8, states abput Revocation of registration in certain cases.- If
the registering officer is satisfied, either on a reference made to him in
this behalf or otherwise, that the registration of any establishment has
been obtained by misrepresentation or suppression of any material fact,

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or that for any other reason the registration has become useless or
ineffective and, therefore, requires to be revoked, the registering officer
may, after giving an opportunity to the principal employer of the
establishment to be heard and with the previous approval of the
appropriate Government, revoke the registration. 9. Effect of
nonregistration.- No principal employer of an establishment, to which
this Act applies, shall-- (a) in the case of an establishment required
to be registered under section 7, but which has not been registered
within the time fixed for the purpose under that section, (b) in the
case of an establishment the registration in respect of which has been
revoked under section 8, employ contract labour in the establishment
after the expiry of the period referred to in clause (a) or after the
revocation of registration referred to in clause (b), as the case may be.
Q26 discuss the concept of payment of wages to the contract
labours under the contract labour act 1970.

Every contractor has been made responsible for payment of wages to

each worker employed by him as contract labour. For ensuring the
regular payment of the minimum wages to the contract labour, the Act
provides that the wages to the contract labour are to be paid in the
presence of the authorized representative of the principal employer,
who has to certify that the wages as per the stipulation have really been
paid to the contract labour. If the Contractor fails to make payment of
wages within the prescribed period or makes short payment, then the
Principal Employer shall be liable to make payment of wages in full or
the unpaid balance due, as the case may be, to the contract labour
employed by the Contractor but he can recover the amount so paid from
the Contractor. A Principal Employer is liable to compensate underpaid
contract labour. The contract labour that performs same or similar kind
of work as regular workmen will be entitled to the same wages and
service conditions as regular workmen as per the Contract Labour
(Regulation and Abolition) Central Rules, 1971. This issue has been
dealt with extensively in the next section of the paper.
The basic provisions regarding the payment of wages have been
discussed in the previous chapter. This section deals with certain
landmark cases pertaining to this issue.

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In Senior Regional Manager, Food Corporation of India, Calcutta v.

Tulsi Das Bauri, the employer contended that arrears of wages are not
wages within the meaning of Section 21 of the Act, therefore, the
employer is not liable to make the payment to the respondent of the
same. The Supreme Court held that the principal employer is statutorily
responsible to ensure payment of wages in case of default by the
contractor, and the term ‘wages’ includes the arrears of wages.
In B.H.E.L. Workers’ Association Haridwar and Ors. v. Union of
India, there was arbitrariness in classifying 1000 workers out of the
16,000 odd workers as contract labourers and thereby receiving salary
lesser than that of the directly employed workmen. Although they all
did the same work as the regular workers directly employed by the
undertaking, under the same conditions of service, their wages bore no
comparison to those paid to the regular workers. They were paid their
salary after deducting a large commission out of it. The Court held that
no particular distinction should be made on the basis of contract labour.
Contract labourers are entitled to the same wages, holidays, hours of
work, and conditions of service as are applicable to the directly
employed workmen by the principal employer. They are entitled to
recover their wages and their conditions of service in a manner akin to
the workers employed by the principal employer under the appropriate
industrial and labour laws.

In spite of the steps taken by the Parliament to promote the well being
of contract labourers, there exist certain problems in the industrial
sector, which haven’t been overcome yet. These problems have been
enumerated in this section.
Derisory Wages- According to the Act, the companies are supposed to
adhere to the minimum wage norms. However, it has been found that
there are workers earning less than Rs 1000 per month, which evidently
does not satisfy the minimum wage criterion. A category of firms that
largely comprises small private firms prefer employing uneducated
workers who can be paid even less than minimum wages. Much of the
migrant labourers from rural areas, especially the eastern and
northeastern regions of India and also from Nepal, fall in this category,

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who migrate to urban establishments in search of jobs and a better

standard of living but are eventually exploited due to lack of awareness.

Q27. Discuss the provisions relating to prohibition of employment

of women under to the meternity Benefit Act 1961 .

No employer shall knowingly employ a woman in any establishment

during the six weeks immediately following the day of her delivery, or
miscarriage, nor shall any woman work during this period.
Besides, no pregnant woman shall, on a request made by her in this
behalf, be required by her employer to do any work of arduous nature,
or that which involves long hours of standing, or which in any way is
likely to interfere with her pregnancy or the normal development of the
foetus; or is likely to cause her miscarriage or otherwise to adversely
affect her health, during the one month immediately preceding the six
weeks before the date of her expected delivery.
Section 4 absolutely prohibits any women from working in an
establishment during the six weeks after her delivery or miscarriage.
Employers are forbidden to knowingly employ women during this
period and employed women are required to take paid six-weeks leave.
Pregnant women have the further option of taking paid leave of absence
up to six weeks before their expected date of delivery under Section
6(2). All working women are thus eligible for a total of 12 weeks of
paid maternity leave, 6 weeks before and 6 weeks after delivery. A
woman worker is entitled to maternity protection, as per the mandate
of the Act she must receive at least 12 weeks of leave with pay .
The period referred to in sub-section (3) shall be – (a) at the period of
one month immediately preceding the period of six weeks, before the
date of her expected delivery; (b) any period during the said period of
six weeks for which the pregnant woman does not avail of leave of
absence under section 6. Every woman shall be entitled to, and her

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employer shall be liable for, the payment of Maternity benefits at the

rate of the average daily wage for the period of her actual absence
immediately preceding and including the day of her delivery and for
the six weeks immediately following that day, says the provision under
Section 5.
However no woman shall be entitled to these benefits unless she has
actually worked in an establishment of the employer from whom she
claims them, for a period of not less than 80 days in the twelve months
immediately preceding the date of her expected delivery.
The maximum period for which any woman shall be entitled to
Maternity benefits shall be 84 days. In case a woman dies during this
period, then the Maternity benefit shall be payable only for the days up
to, and including, the day of her death. Similarly, if a woman dies
during her delivery, or during the period of Implementation of
Maternity Benefit Act of six weeks immediately following the date of
delivery, leaving behind in either case the child, the employer shall be
liable for the Maternity benefits for the entire period of six weeks
immediately following the day of her delivery.

Besides a woman suffering from illness arising out of pregnancy,

delivery, premature birth of child or miscarriage shall be entitled to an
additional leave with wages at the rate of Maternity benefit for a
maximum period of one month under Section 10. Regarding nursing
breaks Section 11 provides for two additional breaks of the prescribed
duration for nursing the child until the child attains the age of 15
months. Moreover, deduction of wages in certain cases has been made
unlawful. A woman cannot be discharged or dismissed by the employer
when she absents herself from work in accordance with the provisions
of this Act.

Q28. Discuss the Impact of globalisation on industry and labour.

Concept of Globalisation
Globalisation essentially means integration of the national economy
with the world economy. It implies a free flow of information, ideas,
technology, goods and services, capital and even people across

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different countries and societies. It increases connectivity between

different markets in the form of trade, investments and cultural
exchanges.
Effects of Globalisation on Industry and Labour
After Independence in 1947 Indian government faced a significant
problem to develop the economy and to solve the issues. Considering
the difficulties pertaining at that time government decided to follow
LPG Model. The Growth Economics conditions of India at that time
were not very good. This was because it did not have proper resources
for the development, not regarding natural resources but financial and
industrial development. At that time India needed the path of economic
planning and for that used ‘Five Year Plan’ concept of which was taken
from Russia and feet that it will provide a fast development like that of
Russia, under the view of the socialistic pattern society. India had
practiced some restrictions ever since the introduction of the first
industrial policy resolution in 1948.
Soon after independence, the period was known as License Raj. As a
result of the restriction in the past, India’s performance in the global
market has been very dismal; it never reached even the 1% in the
worldwide market. India has vast natural resources with high-
efficiency labor, but after all this, it was still contributing with 0.53%
till 1992.
The Government of India announced a New Economic Policy on July
24, [Link] liberalization, India became the second world of
development and became the 7th largest economies. It contributed 1.3
trillion in the world’s GDP. Dr. Manmohan Singh, the former finance
minister, opened the way for a free economy in the country which led
to the significant development of the country.
It is pertinent to note that the adoption of open economy affected the
country positively and as well negatively. On the one hand, it witnessed
high economic development, infrastructure development, and
urbanization and on the other hand had a widening cleft between the
rich and poor and class divide continues to plague the country. Social

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and human development remains absurdly low leading to a profoundly

fragmented nation.
The noteworthy impacts of the policy on industry and labour are as
follows:
• Organized workforce
Organized workforce is decreasing. Number of operations given to
subcontractors have increased and that also in the unorganised sector.
• Trade unions
Trade unions are on a decline. Thus is a worldwide phenomenon. It is
generally agreed that the trade unions movement has fallen on hard
tunes. The extent of its difficulties may sometimes, of-course, be
exaggerated by overemphasising adverse national situation.
Nonetheless, workers' organizations are losing members. Some even
have doubts about their future.
• Wages and employment
The increase in international competition and rapid changes in the
technology has led to a fall in real wages of unskilled workers and
increased inequalities in the developed countries. Worst employment
crisis is being faced by the world after 1930s. About one-third of the
earth's 2.8 billion workers are either jobless or underemployed and
many of those employed receive low wages and the working condition
is poor. New labour saving technologies have increased the woes of the
workers. The process has gained momentum due to global competition
and financial squeeze on governments. Growing income inequality, job
insecurity and unemployment have resulted due to globalisation.
Except in few countries, real wages fell, and the labour market
conditions started to deteriorate. Although open employment fell in my
instances job tended to become more precarious and the urban informal
sector proliferated. Living condition in general worsened.
Globalisation has compelled the developing countries also to carry out
structural adjustments programmes. These program are having an
adverse impact on their workers. Due to closure of uneconomic units,

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shrinkage in public sector employment, reduction in expenditure in

different activities of governments many workers in developing
countries have lost their jobs. Competition has forced restructuring of
many units. This involves labour restructuring leading to loss of jobs
and increased unemployment in different forms. The most vulnerable
section of the society- the poor, women, children and the old suffer the
most.
• Indian Scenario
Globalisation has also affected the Indian industry. In order to remain
competitive, managements have introduced flexibility by restructuring
companies. Not employing permanent category employees, closing
down units, departments, transferring jobs from bargainable to
nonbargainable categories, introducing functional flexibility, putting
pressure to increase productivity, opening parallel plants, employing
contract workers and subcontracting out production. In order to keep
the company small the trend is to outsource work as far as possible
Units are being relocated in interior places reducing the power of the
unions. VRS is being resorted to. Trade unions have been forced to give
up or curb gain and accept Job loss due to threat or industrial closure.
Norms relating to work load have gone up. Thus globalisation and
liberalisation have created an enabling environment for cutting down
regular, salaried jobs in organised sector through VRS, contractual
employment, sub- contracting, outsourcing, feminisation, etc. and
weakening trade unions. Links between the trade unions and political
party is weakening which is reducing their economic strength and
political influence.
In order to remain competitive in the present phase of globalisation it
has become imperative to restructure the economies. The capacity of
governments to regulate labour markets is weakening in the face of
heightened international economic competition. Informal sector is on
rise. Trade unions have been adversely affected. Bargaining position of
workers is decreasing. What is required is a holistic and long-term
framework to cope with the challenges posed by globalisation.

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Q29. Explain the duties of the employers under the Karnataka

Shop & Establishment Act.

Section 2(i) of the act defines establishment,

“Establishment” means a shop or a commercial establishment;
Section 2(u) of the act shop,
“shop” means any premises where any trade or business is carried on
or where services are rendered to customers, and includes offices,
storerooms, godowns, or warehouses, whether in the same premises or
otherwise, used in connection with such trade or business, but does not
include a commercial establishment or a shop attached to a factory
where the persons employed in the shop fall within the scope of the
Factories Act, 1948.

Duties of Employer

Employment and Regulation:

• Every employer, employing any person in or in connection with
his establishment shall issue an appointment order in form ‘P’. • Every
day, employee attendance shall be registered in form ‘T. • The
organizations having weekly holiday exemption, after taking
continuous service of 6 days from any employee, shall give 7thday as
mandatory holiday for him. In special cases 7th day can not be given
as holiday, 11th day should be given as mandatory holiday. • After each
month salary shall be paid before 7th date of next month. • Working
period of any employee should not exceed 48 hours and 58 hours
including extra working hours. • End of the year, counting the working
day of the employees for present year; 1 day per 20 days as earned
leave and 1 day per 30 days as sick leave shall be calculated. This leave
account shall be recorded in the format ‘F’. • Any employee who has
completed 180 days service to the establishment can not be dismissed
without prior notice.
Records management:
• Use format 'A'; for Establishment registration/Renewal/To report
change of information. • Use format 'P'; to fix the different day as the
weekly holiday. • Use format 'F'; to maintain leave records and Use

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format ‘H’; to give the copy to the employee. • Use format 'T'; to
maintain daily attendance of employee. • Use format 'R'; to get
permission to allow women to work after 8 pm.
Submission of annual report:
Annual report ending with 31st December shall be submitted before
31st January of next year in the format 'U'.

SHORT NOTES

1. Who to approach in case of bondage?

According to S. 25 of the Act, no civil court shall have jurisdiction in
respect of any matter to which any provision of this Act applies and no
injunction shall be granted by any civil court in respect of anything
which is done or intended to be done by or under this Act.
The aggrieved person or any person on his behalf can approach to the
District Magistrate who is chairman of the Vigilance Committee
constitute under the Act and has been entrusted with certain duties and
responsibilities for implementing the provisions of the Act. Matter can
also be brought to the notice of the Sub Divisional Magistrate of the
area or any other person who is a member of the Vigilance Committee
of District or Sub-division. Relief available to the victim
The bonded labour is to immediately release from the bondage. His
liability to repay bonded debt is deemed to have been extinguished.
Freed bonded labour shall not be evicted from his homesteads or other
residential premises which he was occupying as part of consideration
for the bonded labour. A rehabilitation grant of Rs. 20,000/- to each of
the bonded labour is to be granted and assistance for his rehabilitation
provided.

2. Liability of the employer under Equal Remuneration Act of

1976

Sec. 10, of the act imposes penalty in cases where the employer violates
the provisions of this act he is liable for punishment under this section.
A) If any employer after the commencement of this Act omits or fails
to maintain or fails to produce any register or other documents etc. shall

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be punishable with simple imprisonment for a term which may extend

to one month or with fine which may extend to ten thousand rupees or
with both.
B) If any employer –
(a) Makes any recruitment in contravention of the provisions of his
Act, or
(b) Makes any payment or remuneration at unequal rates to men and
women worker, for the same work or work of a similar nature, or (c)
Makes any discrimination between men and women workers in
contravention of the provisions of this Act, or
(d) omits or fails to carry out any direction made by the appropriate
Government under sub-section (5) of Section 6, he shall be punishable
with fine which shall not be less than ten thousand rupees but which
may extend to twenty thousand rupees or with imprisonment for a term
which shall be not less than three months but which may extend to one
year or with both for the first offence, and with imprisonment which
may extend to two years for the second and subsequent offences. C)
Omitting or refusal to produce any register or other documents to an
Inspector or to give any information shall be punishable with fine
which may extend to five hundred rupees.

3. Doctrine of ‘Equal Pay for equal work’

The Doctrine of ‘equal pay for equal work’ is not a fundamental right
but a Constitutional right. Equal remuneration for men and women is
the right of an employee without any qualification. The Act of Equal
Remuneration, 1976 was enacted to comply with the provisions of
Directive Principle of State Policy under Article 39. The Act, being a
beneficial legislation, ensures adequate payment or remuneration to be
made irrespective of the physical strength of employee and removing
the scope of social and economic injustice merely on the ground of sex,
thereby working to establish a just society in the country.
As provided under Section 5 of the Act, no employer shall be allowed
to make discrimination while making recruitment for the same work or
work of a similar nature or make any discrimination on the basis of sex
unless that particular employment of women or men is restricted or
prohibited by any statute. Therefore, in matter of recruitment policy

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and condition of service such as promotions, training or transfer, the

employer is not authorised to make discrimination against women only
on the basis of sex. This provision is similar to the provision contained
in Article 16(1) of the Constitution of India, 1950.

4. Licences of contractors under the Interstate Migrant Workmen

under the Act.

Licensing of Contractors (Secs. 7-11)

Every contractor who proposes to recruit or employ inter-State migrant
workmen will be required to obtain a licence from the specified
authority both of the State to which the workman belongs (home State)
and the State in which he is proposed to be employed (host State). The
license under the Act may contain the terms and conditions of the
agreement or other arrangement under which the workmen will be
recruited, the remuneration payable, hours of work, fixation of wages
and other essential amenities to be provided to the Inter-State Migrant
Workmen as deemed fit by the appropriate Government in accordance
with the rules and shall be issued on payment of prescribed fees.
The Act lays down the conditions under which the license issued may
be revoked or suspended or the security or any part thereof furnished
by the contractor may be forfeited and also procedure for filing an
appeal.

5. IPC & sexual harrasment.

Sec 2(n) defines sexual harassment under the act , “sexual
harassment” includes any one or more of the following unwelcome
acts or behaviour (whether directly or by implication) namely :-
(i) physical contact and advances; or (ii) a demand or request for
sexual favours; or (iii) making sexually coloured remarks; or (iv)
showing pornography; or (v) any other unwelcome physical, verbal
or non-verbal conduct of sexual nature;
Conduct that may be construed as sexual harassment not only violates
the Prevention of Workplace Sexual Harassment Act, but also could
constitute an offence under the IPC. In 2013, substantial changes were
made in the way sexual harassment was viewed within the criminal

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justice system in India. The Criminal Law Amendment Act of 2013,

which commenced on April 3, 2013, included Section 354A of the
Indian Penal Code, 1860 that defined sexual harassment. The India
Penal Code, 1860 has also defined the term sexual harassment and
related offences and put forth punishments for the same:
Section 354A- Sexual harassment is:
A man committing any of the following acts—
(a) physical contact and advances involving unwelcome and explicit
sexual overtures; or (b) a demand or request for sexual favours; or (c)
showing pornography against the will of a woman; or (d) making
sexually coloured remarks, shall be guilty of the offence of sexual
harassment. The provisions are:
• Sec. 354. Outraging the modesty of a woman • Sec. 354A. Sexual
harassment by a man • Sec. 354B. Assault or use of criminal force to
woman with intent to disrobe • Sec. 354C. Voyeurism • Sec. 354D.
Stalking • Sec. 509. Insulting the modesty of a woman

6. Duties of the employers under the sexual harassment act of 2013.

Section 3 makes provision for prevention of sexual harassment. It

provides that no woman shall be subjected to sexual harassment at any
workplace. The harassment may include, but is not limited to-
(i) Implied or overt promise of preferential treatment in her
employment; or
(ii) Implied or overt threat of detrimental treatment in her
employment; or
(iii) Implied or overt threat about her present or future employment
status; or
(iv) Conduct of any person which interferes with her work or
creates an intimidating or offensive or hostile work
environment for her; or
(v) Humiliating conduct constituting health and safety problems
for her.

Duties of Employer (Sec. 19)

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This section deals with the duties of the employer. These are as under-
(i) Provide a safe working environment;
(ii) Display penal consequence of sexual harassment;
(iii) Organise workshop and awareness programme;
(iv) Provide necessary facilities to Internal Complaints Committee/
Local Complaints Committee;
(v) Ensure attendance / appearance of the respondent and witness
before the committee;
(vi) Provide relevant information to the committee;
(vii) Provide assistance to the aggrieved woman;
(viii) Cause to initiate action under the Indian Penal Code, 1860;
(ix) Treat the cases of sexual harassment as a misconduct;
(x) Ensure timely submission of Internal Complaints Committee's
report.

7. Period for payment of bonus:

The provision dealing with payment of bonus within the time duration
is specified under, Sec 19. Time-limit for payment of bonus.
All amounts payable to an employee by way of bonus under this Act
shall be paid in cash by his employer .
(a)where there is a dispute regarding payment of bonus pending
before any authority under section 22, within a month from the date
on which the award becomes enforceable or the settlement comes
into operation, in respect of such dispute.
(b) In any other case, within a period of eight months from the
close of the accounting year,
Provided that the appropriate Government or such authority as the
appropriate Government may specify in this behalf may, upon an
application made to it by the employer and for sufficient reasons, by
order, extended the said period of eight months to such further
period or periods as it thinks fit; so, however, that the total period so
extended shall not in any case exceed two years.

8. Health & safety measures of child Labour.

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Sec 13 of the act deals with the health and safety of the child labour
guaranteed under the act.

(1) The appropriate Government may, by notification in the Official

Gazette, make rules for the health and safety of the children employed
or permitted to work in any establishment or class of establishments.

(2) Without prejudice to the generality of the foregoing provisions,

the said rules may provide for all or any of the following matters,
namely :

(a) Cleanliness in the place of work and its freedom from nuisance
(b) Disposal of wastes and effluents;
(c) Ventilation and temperature;
(d) Dust and fume;
(e) Artificial humidification;
(f) Lighting;
(g) Drinking water;
(h) Latrine and urinals;
(i) Spittoons;
(j) Fencing of machinery;
(k) Work at or near machinery in motion;
(l) Employment of children on dangerous machines;
(m) Instructions, training and supervision in relation to
employment of children on dangerous machines;
(n) Device for cutting off power;
(o) Self-acting machines;
(p) Easing of new machinery; (q) Floor, stairs and means of access;
(r) Pits, sumps, openings in floors, etc.
(s) Excessive weights;
(t) Protection of eyes;
(u) Explosive or inflammable dust, gas, etc. ;
(v) Precautions in case of fire; (w) Maintenance of buildings; and
(x) Safety of buildings and machinery.
9. Contract labour and judicial intervention

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Judiciary plays an extremely important role in developing the law and

in shaping and influencing its course by way of its interpretations of
the various provisions of the law. Before the enactment of this Act,
there was no specific legislation which comprehensively dealt with the
predicament of contract labour in India. Although there were laws such
as the Industrial Disputes Act, 1947 and Payment of Wages Act, 1936,
inter alia, none of them was exclusively designed to regulate contract
labour. This restricted the Courts from formulating the basic guidelines
in order to abolish or restrict contract labour. Therefore in order to ease
the process of adjudication of industrial disputes that were related
primarily to contract labour, the Courts required an Act which
completely dealt with the regulations of contract labour.
After the enactment of the Act in 1970, the Courts did not have to face
impediments in granting relief to the wronged party in disputes
regarding the facilities which should be provided to contract labourers
for, those guidelines had unambiguously been enumerated in Sections
16, 17, 18 and 19 of the Act. The definitions of employer, contractor
and workmen had also been provided by the Act in Section 2 which
helped the court interpret the meaning of these words which under
normal circumstances seem too broad and vague. The Courts can now
also construe as to when certain labourers are to be considered as
contract labourers and to what rights they are lawfully entitled. Some
landmark judgments which have thrown light upon the provisions of
the Act and have acted as precedents in determining similar questions
of law that were placed before the Courts have been discussed in this
section of the paper. Some renowned decisions among the plethora of
cases that came up before the Courts have been grouped under the
issues or the questions of law that governed them. The judgments may
be discussed as follows:
The Courts have had to construe the significance of ‘appropriate
government’ time and again. The criteria for deciding the issue of
appropriate government under the Act is that the industry must be
carried on by or under the authority of the Central Government and not
that the company/undertaking is an instrumentality or an agency of the
Central Government for purposes of Article 12 of the Constitution.
Such an authority may be conferred either by a statute or by virtue of

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relationship of principal employer and agent or delegation of power and

this fact has to be ascertained on the facts and circumstances of each
case.
Heavy Engineering Mazdoor Union v. State of Bihar was one of the
first cases wherein the expression ‘appropriate government’ was
elucidated upon by the Court. It was asserted in this case that the phrase
‘under the Authority of’ must be interpreted in detail and that
‘Authority’ must be construed according to its ordinary meaning which
means legal power given by one person to another to perform an act. A
person is said to be ‘authorized’ or to have ‘authority’ when he is in
such a position as to produce the same effect as if the person granting
the ‘authority’ had for himself done by the act. The Court critically
examined the phrase ‘under the Authority of’ and maintained that it
implies pursuant to an authority such as where an agent or servant acts
under or pursuant to the authority of his principal or master. It
established in light of the situation that albeit the entire share capital
was vested in the name of President of India, and its nominees and
extensive control were vested in the Central Government, it did not
make the organization in question an industry carried on under the
authority of Central Government.
The above ratio was upheld in the decisions of Hindustan Aeronautics
Ltd. v. Their Workmen and Rashtriya Mill Mazdoor Sangh v. Model
Mill, Nagpur and this position of law continued to be valid till
December 6, 1996. The Supreme Court expressed its contrary view in
Air India Statutory Corporation v. United Labour Union and Ors.,
wherein it was held that ‘appropriate government’ in respect of all
PSUs will be the Central Government and not the State Government
which is under the control and regulation of the Central Government.
After this verdict, the Central Government delegated its power as
Appropriate Government under section 39 of Industrial Disputes Act,
1947 to the concerned State Governments in which the Central PSUs
were situated.
The above decision was reversed and the position in Heavy
Engineering case was restored by the Apex Court in Steel Authority of
India Limited and Ors. v. National Union Water Front Workers and
Ors, asserting that ‘appropriate government’ in relation to an

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establishment would be the Central Government if (i) the concerned

Central Government company or undertaking is included by name in
clause (a) of Section 2 of the Industrial Disputes Act, or (ii) any
industry carried on by or under the authority of Central Government or
by a railway company, or (iii) any such controlled industry as may be
specified in this behalf by the Central Government, otherwise in
relation to any other establishment, the Government of the State in
which that other establishment is situated, will be the appropriate
Government.

10. The central and state advisory boards under the contract
labour act 1970.
Under Sections 3 and 4 of the Act, there is a provision for the
constitution of Central and State Advisory Contract Labour Boards to
advise the Central/State Government on matters arising out of the
administration of the Act.
In matters relating to the abolition of contract labour system, the Board
normally constitutes a 3 member Tripartite Committee from amongst
members of the Central Advisory Contract Labour Board representing
the employers and workers and a Government official as Member
Convener to study the issue in detail. The report submitted by the
Committee is placed before the Central Advisory Contract Labour
Board and keeping in view the recommendations of the Board, the
Central Government takes a decision on the matter. At present, 12 such
Committees are functioning either to study abolition of contract labour
system or to consider the requests for exemption from prohibitory
notifications in various establishments.

11. Does the act provide the workers under it the right to be
absorbed into the mainstream workforce of the establishment
after the abolition of contract labour?
Although the Act aims at the regulation of contract labour, at the end
its goal is the abolition of the same. This poses several questions as to
the employment status and opportunities of those who are currently
enjoying benefits under the Act. An abolition of contract labour would

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result in loss of employment which would be a far worse scenario than

that of working as a contract worker.
This concern has, however, been addressed in almost every case that
relates to contract labour. It has been clearly held that upon abolishment
of contract labour, workers who were working in such capacity will
directly get absorbed into the mainstream workforce of the
establishment. It was further stated that loss of jobs would not be a
possibility as this would be against the very aim of this Act i.e. to
provide secure employment to the workers.
However in the case of RK Panda v. Steel Authority of India where
the same issue was brought before the Supreme Court of India, it was
held that the primary objective of the Act was to protect contract
workers from exploitation. However the decision to absorb them in the
workforce or terminate their employment is the sole discretion of the
employer. Over time there have been several cases that have given
varying opinions. However, most of them have maintained that the
decision to absorb or terminate should be that of the employer alone.
12. Licensing of contractors under the contract labour act 1970

Sec 11 to 14 deals with the contracting of licences of the contractors

under the act . Appointment of licensing officers.-- The appropriate
Government may, by an order notified in the Official Gazette, (a)
appoint such persons, being Gazetted Officers of Government,
as it thinks fit to be licensing officers for the purposes of this
Chapter; and
(b) define the limits, within which a licensing officer shall
exercise the powers conferred on licensing officers by or under
this Act.
According to sec 12 Licensing of contractors.- (1) With effect from
such date as the appropriate Government may, by notification in
the Official Gazette, appoint, no contractor to whom this Act
applies, shall undertake or execute any work through contract
labour except under and in accordance with a licence issued in that
behalf by the licensing officer. (2) Subject to the provisions of
this Act, a licence under sub-section (1) may contain such
conditions including, in particular, conditions as to hours of work,

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fixation of wages and other essential amenities in respect of

contract labour as the appropriate Government may deem fit to
impose in accordance with the rules, if any, made under section
35 and shall be issued on payment of such fees and on the deposit
of such sum, if any, as security for the due performance of the
conditions as may be prescribed.
Sec 13. Grant of licences.- (1) Every application for the grant of a
licence under sub-section (1) of section 12 shall be made in the
prescribed form and shall contain the particulars regarding the
location of the establishment, the nature of process, operation or
work for which contract labour is to be employed and such other
particulars as may be prescribed. (2) The licensing officer may
make such investigation in respect of the application received under
sub-section (1) and in making any such investigation the licensing
officer shall follow such procedure as may be prescribed. (3) A
licence granted under this provision shall be valid for the period
specified therein and may be renewed from time to time for such
period and on payment of such fees and on such conditions as may
be prescribed.
Sec 14 deals with the, Revocation, suspension and amendment of
licences (a) licence granted under section 12 has been obtained by
misrepresentation or suppression of any material fact, or
(b) the holder of a licence has, without reasonable cause, failed to
comply with the conditions subject to which the licence has been
granted or has contravened any of the provisions of this Act or
the rules made
There under, then, without prejudice to any other penalty to which
the holder of the licence may be liable under this Act, the licensing
officer may, after giving the holder of the licence an opportunity of
showing cause, revoke or suspend the licence or forfeit the sum, if
any, or any portion thereof deposited as security for the due
performance of the conditions subject to which the licence has
been granted.
Under sub-sec (2) of this section, the licensing officer may vary or
amend a licence granted under section 12.

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[Link] of minimum and maximum bonus

Payment of Minimum Bonus
Section 10 of the Payment of Bonus Act, 1965 stipulates that, subject
to the other provisions of this Act, every employer shall be bound to
pay to every employee in respect of every accounting year, a minimum
bonus which shall be 8.33% of the salary or wage earned by the
employee during the accounting year or Rs.100 (Rs.60 in case of
employee below the age of 15 years), whichever is higher, whether or
not the employer has any allocable surplus in the accounting year.
Even if the employer suffers losses during the accounting year he is
bound to pay minimum bonus as prescribed by Section 10. This Act
creates a statutory right in the employees to get minimum bonus and
also creates a statutory liability upon the employers covered by the Act
to pay minimum bonus.
Payment of Maximum Bonus
Section 11 provides, where, in respect of any accounting year referred
to in Section 10, the allocable surplus exceeds the amount of minimum
bonus payable to the employees under that section, the employer shall,
in lieu of such minimum bonus, be bound to pay to every employee in
respect of that accounting year, bonus which shall be an amount in
proportion to the salary or wage earned by the employee during the
accounting year subject to a maximum of 20% of such salary or wage.
In computing the allocable surplus under the above-mentioned
provision, the amount set on or the amount set off under the provisions
of Section 15 shall be taken into account in accordance with the
provision of that section.
Calculation of Bonus with respect to certain Employees
According to section 12, where the salary or wage of an employee
exceeds ten thousand rupees or the minimum wage for the scheduled
employment, as fixed by the appropriate Government, whichever is
higher per mensem, the bonus payable to such employee under section
10 or, as the case may be, under section 11, shall be calculated as if his
salary or wages were ten thousand rupees or the minimum wage for the

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scheduled employment, as fixed by the appropriate Government,

whichever is higher per mensem.
For the purposes of this section, the expression “scheduled
employment” shall have the same meaning as assigned to it in clause
(g) of section 2 of the Minimum Wages Act, 1948.

Solve any two of the following problems:

a) The Government of India as an employer employed some
employees for the purpose of construction works. The minimum wages
were denied to the employees. A public interest litigation was filed
alleging that denial of minimum wages amounts to “forced labour”
within the ambit of Article 23 of the Constitution. Decide.
Ans : Yes, the denial of minimum wages amounts to forced labour
within the ambit of Article 23 of the Constitution. The same is
abolished under the Bonded Labour System (Abolition) Act, 1976.
In People’s Union for Democratic Rights v. Union of India (AIR 1982
SC 1473) popularly known as Asiad Workers case, where non-payment
of minimum wages to construction workers was successfully
challenged, among others, for the violation of Article 23, the Supreme
Court, after an elaborate discussion on the background, philosophy and
scope of that article, held that the prohibition against ”traffic in human
beings and begar and other similar forms of forced labour” is ”a general
prohibition, total in its effect and all pervasive in its range”. It is a
charter of recognition of human dignity, the Court said, against all-
State as well as private person. Rejecting the argument of the Union
that it prohibit only begar or other unpaid labour the Court held that all
unwilling labour is forced labour whether paid or not and is, therefore,
prohibited. On the specific question of minimum wages the Court held
that where someone works for less than minimum wages the
presumption is that he is working under some compulsion. The
compulsion may be either the result of physical force or of legal
provisions or of want, hunger and poverty. Emphasizing on the last

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factor and declaring the non-payment of wages a forced labour the

Court concluded:
“Any factor which deprives a person of a choice of alternatives and
compels him to adapt one particular course of action may properly be
regarded as ”force” and if labour or service is compelled as a result of
such ”force”, it would be forced labour.”
b) Mr. Karthik is working as a senior medical practitioner in a
Government Hospital and drawing a salary of A scale. Mrs. Asha was
appointed as junior medical practitioner in the same hospital and her
salary was fixed on the basis of B scale. Mrs. Asha challenged her scale
of payment as it is violating the provisions of Equal Remuneration Act.
Whether Mrs. Asha will succeed? Give reasons.
Ans : No. Mrs. Asha will not succeed in this case.
As per section 4 of the Equal Remuneration Act, it is the duty of
employer to pay equal remuneration to men and women workers for
same work or work of a similar nature. But it is not applicable in the
present case because Mrs. Asha is working in different capacity
compare to Mr. Karthik.
The facts of the given case are similar to the following case;
In C. Girijambal v. Government of AP, [(1981) 2 SCC. 155], it has been
held that the principal of equal pay for equal work is not applicable in
professional services.
In Ashok Kumar Garg v. State of Rajasthan, [(1994) 3 SCC 357] it has
been observed that the question of equal work depends on various
factors like responsibility, skill, effort and condition of work.
In State of AP and others v. G Sreenivasa Rao & others, 1989 SCC (2)
290, It was held that equal pay for equal work does not mean that all
the members of the same cadre must receive the same pay packet
irrespective of their seniority, source of recruitment, educational
qualifications and various other incidents of service.
C) .Two persons aged about 13yrs & 15yrs were appointed by the
employer of CBZX establishment run by the family which

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manufactured handicrafts. Decide whether the employment of the

two children is child labour.
Ans: In this case the employment of two children is not called as child
labour. Cause the appointment of children in the family business is not
termed to be as child labour.
Under sec 5 of the Child Labour Act 2016 , as according to sction 3 of
the principal Act ie the act of 1986 , the following section shall be
substituted, namely:—(1) No child shall be employed or permitted to
work in any occupation or process. But under clause (2) of sec 5
Nothing in sub-section (1) shall apply where the child,— (a) helps his
family or family enterprise, which is other than any hazardous
occupations or processes set forth in the Schedule, after his school
hours or during vacations; (b) works as an artist in an audio-visual
entertainment industry, including advertisement, films, television
serials or any such other entertainment or sports activities except the
circus, subject to such conditions and safety measures, as may be
prescribed: Provided that no such work under this clause shall effect
the school education of the child.
As per this provision the purposes of this section, the expression, (a)
‘‘family’’ in relation to a child, means his mother, father, brother, sister
and father’s sister and brother and mother’s sister and brother; (b)
‘‘family enterprise’’ means any work, profession, manufacture or
business which is performed by the members of the family with the
engagement of other persons.

d) A, an employee of x, establishment died within two years of

employment during work, his widow claims gratuity from the
employer advise her.

Ans: In his case the widow is entitled to claim gratuity as the provision
of sec 4 apply in these cases. Usually the eligibility for claiming
gratuity by the employee is when an employee on the termination of
his employment after he has rendered continuous service of not less
than 5 years i.e. on superannuation, retirement, resignation, death or
disablement due to accident or disease, under Sec 4. The period of 5

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years is not necessary if the termination of the employee is because of

death or disablement. In the case of death the amount is paid to the legal
heirs “Continuous Service” means uninterrupted service which may be
interrupted on account of sickness, accident, leave, absence from duty
without (not being treated as break in service), lay-off, strike, lock-out
or cessation of work not due to the fault of the employee.

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 Question 1: Constitutional Dimensions of Labour Law

The Committee on Labour Welfare, 1969, noted that “labour welfare includes such services, as
facilities and amenities as adequate canteen, rest and recreational facilities, sanitary and medical
facilities, arrangement for travel to and from work and for the accommodation of the workers
employed at a distance from their homes and such other services amenities and facilities as
contribute to improve the condition under which workers are employed.

The Constitution is the supreme law of a nation and all legislations draw their inspiration from it. The
trinity of the Indian Constitution, the Preamble, the Fundamental Rights, the Directive Principles of
State Policy, embody the fundamental principles which provide a guide to all legislations including the
labour legislations.

❖ Labour Laws & Fundamental Rights: Part III (Article 12-35)

Part III of the Constitution of India is the benchmark for labor laws in India. Also, Part III
(Article 12 to 35) of the Constitution covers the fundamental rights of its citizens which includes
Equality before the law, Religion, Sex, caste, place of birth, the abolition of untouchability, freedom
of speech and expression and prohibition of employment of children in factories.

1. Article 14: Equality before Law

Equality before the law which is interpreted in labor laws as “Equal pay for Equal work”. It does not
mean that article 14 is absolute. There are a few exceptions in it regarding labor laws such as
physical ability, unskilled and skilled labours shall receive payment according to their merit.

In the case of Randhir Singh vs Union of India, the Supreme Court said that “Even though the
principle of ‘Equal pay for Equal work’ is not defined in the Constitution of India, it is a goal which is
to be achieved through Article 14,16 and 39 (c) of the Constitution of India.

2. Article 19(1)(C): Right to form Associations, Unions, Co-operative Societies

Constitution guarantees citizens to form a union or association. The Trade Union Act, 1926 works
through this Article of the Constitution. It allows workers to form trade unions.

Trade Unions provide the power to raise voice against atrocities done to the workers. Unionization
brings power to the laborers. Trade Unions discuss various labor-related problems with the
employers, they conduct strikes, etc.

In Damayanti v. UOI case, the Supreme Court held that workers have a right to form associations
and unions and any laws dictating who may be admitted to such associations or unions or the duration
of their membership is violative of right to form association guaranteed under Article 19 of the
Constitution.

3. Article 23: Prohibition of Traffic in Human Beings and Forced Labour

Constitution prohibits forced labor. When the Britishers ruled over India, forced labor was prevalent
all over India. They were made to work against their will and weren’t paid according to their work.
The Government at that time were infamous for forced labor and the landlords were also involved in
forced labor.

In current times, forced or bonded labor is an offense which is punishable under the law. The Bonded
Labor (Abolition) Act, 1976 prohibits all kinds of bonded labor and is declared illegal.
 4. Article 24: Prohibition of employment of Children

Constitution prohibits all forms of child labor. Nobody can employ a child under the age of 14 to work.
Child labor was a massive problem of our country in the earlier times and it still is happening but at a
lower scale. The penalization of article 24 is severe.

❖ Labour Laws & Directive Principles of State Policy: Part IV (Article 36 – 51)

Part IV of the Constitution of India, which is also known as the “Directive Principles of State Policy”
aims to work toward the welfare of its citizens. DPSP cannot be enforced in the court of law, but it
provides a guideline to the legislature for making labor laws in India.

1. Article 39: Certain principles of Policy to be followed by the States

➢ 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. It means that every citizen
of the country has the right to earn a livelihood without getting discriminated on the basis of
their sex.
➢ Constitution says that “The State shall, in particular, direct its policy towards securing; that
there is equal pay for equal work for both men and women. Wages will not be determined on
the basis of sex rather it will be according to the amount of work done by the worker.

2. Article 41: Right to work, to education and to public assistance in certain cases

Constitution provides “Right to Work” which means that every citizen of the country has the right to
work and the state with the best of its abilities will secure the right to work and education.

3. Article 42: Provisions for just and humane conditions of work and maternity relief

Provides for the upliftment of the working conditions for workers. It talks about creating a suitable
and Humane workplace. This article also talks about maternity relief, i.e leave provided to women
when they are pregnant.

4. Article 43: Living Wage

Talks about the “living wage” for its citizens. Living wage not only includes the “bare necessities of
life” but also the social and cultural upliftment of the person. It also includes education and
insurances for a person.

The State shall constantly try to create opportunities in the fields of Agriculture and Industries
with special reference to cottage industries.

In State of Punjab v. Jagjit Singh the Supreme Court held that temporarily engaged employees
(daily wage employees, ad‐hoc appointed on casual basis, contractual employees and the like), are
entitled to minimum of the regular pay scale, along with dearness allowance (as revised from time to
time) on account of their performing same duties, which are discharged by those engaged on regular
basis, against sanctioned posts.

❖ Conclusion

Constitution of India is the base for all laws in our country. The labor laws are also made according to
the constitution and any violation of constitutional laws result in the abolition of that particular law.
The Directive Principles of the State policy play a major role in the making of new labor laws in
India.
 Question 2: The Bonded Labour System (Abolition) Act, 1976
From farms to industries, from fisheries to building houses, India has ruminated on labour-intensive
methods as the most capacious recourse to meet its service and production needs. But with the
invasion of technology, this trend has touched new focal points, with this the workers are more
susceptible to oppression and ill-treatment, making them work for some extra hours to paying them
low wages became common. Hence, it became a desideratum to solve this issue with legal remedies,
which thereafter, paid way to ‘Labour Laws’ in India.

Furnishing workers with high-interest loans and making them work in undesired conditions for abated
wages to pay off the debt, popularly known as bonded labour and recently it has become a customary
practice, this fostered huge distress amongst the working class as they were victimized and made
the sitting ducks of the employers vex. The Bonded Labour System (Abolition) Act, 1976 came as a
rescuing chevalier for the labourers who were coerced to work on bonds. This Act applies to the
whole of India and has an overriding effect as the provisions of this Act will be consistent
notwithstanding any inconsistencies. Section 1, Section 2 and Section 3 of this Act provides us with
the above stated introduction.

❖ Abolition of Bonded Labour System

It was uninhibitedly made intelligible that after the commencement of this Act there shall be a total
veto on the practice of bonded labour. Every individual who was browbeaten to work on bonds will be
unchained and set free. This Act also guarantees to fortify the virtue and rights of workers to not
be forced again as bonded labourers. Section 4 and Section 5 of this act talks about the same.

Further, this Act makes it perspicuous and comprehensive that any custom, tradition, agreement, etc.
based on which a person or dependant was made to work as bonded labourers, shall be held nullified
and lapsed.

❖ Liability to repay the bonded debt to stand extinguished (Section 6)

After the commencement of this Act, the liability of repayment of the debt would remain suspended
and extinguished, hereby, the creditor can no longer force the worker to pay the debt. And there
shall be no suit in any Court regarding the recovery of the same.

Every attachment made before the commencement of this Act for recovery of the bonded debt
would stand vacated and in the course of the same if any movable property is vested with the Court
or any authority shall be recovered and given back to the workers. Similarly, the property of the
bonded labour or dependants coercively captured by the creditor shall be given back and any bonded
labour imprisoned shall be released.

❖ Property to be liberated from lien, mortgage, etc. (Section 7)

Any property of the bonded labour which was confiscated by landlords and was under any mortgage,
lien or other encumbrances shall be reinstated to the labourers and the debt related to the same
shall be discharged. If there is any failure in returning the property then the labour has the right to
procure profits as may be prescribed by the Court of lowest pecuniary jurisdiction.

This clause indeed appends more comfort to the labour laws of our country and indemnify the
property of bonded labourers from mortgage, lien etc.
❖ Bonded labourers not to be shown the door (Section 8)

A person who was unchained and set free under this Act from any bonds, shall not be shown the door
from residential complexes or premises that he was residing before the commission of this Act, by
the creditor. If there is any such act of expulsion noticed, then the executive magistrate in charge
of the subdivision under the jurisdiction of which the residential complex or premise falls shall pass
an appropriate decree to restore the dwelling to the labourers. This facilitated the bonded labourers
to regain their homes and stay rooted.

❖ Creditor not to accept payment against the extinguished debt (Section 9)

The creditor by virtue of law is precluded from accepting payment against any bonded debt which has
been withdrawn through this act. If such an act was committed then the creditor shall be punished
with imprisonment of three years and fine.

In addition to this, the creditor shall have to submit the payment collected and this would
subsequently be paid back to the bonded labour.

❖ Implementing Authorities

1. Authorities designated for implementation (Section 10)

There is a hierarchy followed in implementing this Act from the State government to the officer in
charge of implementation. Placed at the top of the hierarchy is the State government who confers
the District Magistrate with the power to safeguard the provision of this Act. Further, the District
Magistrate delegates the powers to an officer who will have the implementing powers at the local
level.

Thereby, this acts as a three-tier system of implementation which enhances the efficiency of this
Act with better wings of administration.

2. The onus to ensure credit by District Magistrate and other (Section 11)

The District Magistrate appointed by the State government and the officer who is delegated with
powers by the magistrate has the right to protect and cushion the rights of bonded labourers. This is
done so that these labourers don’ t get back to a situation where they are forced to work on bonds
by the creditors.

This includes promoting welfare schemes and measures in favour of the labour class and developing
their skills to face this accelerating world.

3. The onus of District Magistrate and officers authorised (Section 12)

It becomes the delegated duty of the District Magistrate and officers authorised by the District
Magistrate to check on whether after the commencement of this Act was there any act of bonded
labour committed anywhere within their local jurisdiction.

If there is a commission of any such forced or bonded labour, then the respective officers shall take
appropriate action to veto such an Act and also protect the rights and dignity of the bonded
labourers. Also, they shall promote welfare measures which would become torchbearers of the right,
dignity, and voice of the labourers.
❖ Vigilance Committee

1. Functions of the Vigilance Committee

The State government is responsible for appointing a vigilance committee at every district and sub-
division as it may think fit through notifying in the Official Gazette. This is done to have a proper
and well-maintained surveillance system. These provisions are mentioned under Section
13 and Section 14.

The vigilance committee at the district level:

➢ Consists of a chairman who shall be a district magistrate or a person nominated by him.

➢ There should be three members duly belonging to the scheduled caste or scheduled tribe to
mark representation from these spheres.
➢ Two social workers of the district, not more than three members representing an official or
non-official agency relating to rural development and a person marking representation of a
financial institution of the district are the other members constituting the committee.

At the sub-division level:

➢ The committee constitutes a chairman who is a sub-divisional magistrate or a person

nominated by him.
➢ Three members duly belonging to the scheduled caste or scheduled tribe, two social workers,
not more than three members representing an official or non-official agency relating to rural
development nominated by district magistrate, a person marking representation of a financial
institution of the sub-division, an officer mentioned under section 10 are the other members
constituting the committee.

2. Burden of Proof (Section 15)

When there arises a question of a debt claimed by bonded labour then the burden of proof will lie on
the creditor to prove that the debt is not a bonded debt.

❖ Offences and Procedure for Trial

1. Punishment for enforcement of bonded labour (Section 16)

Deterrence and reformation are two pillars of the justice system of India which prevents an
individual from committing further crimes, these pillars were used to strengthen this Act too. Here,
if any person after the commencement of this Act coerces any other person to render bonded labour,
shall be punished with imprisonment for three years and also with a fine of rupees two thousand.

2. Punishment for the advancement of bonded debt (Section 17)

If any person advances any bonded debt after the commencement of this Act shall be punished with
imprisonment up to three years and a fine of rupees two thousand. This depicts the advancement of
bonded debt to be an offence which is punishable under this Act, thereby it prevents any creditor
from the advancement of bonded debt.

3. Extracting bonded labour, punishments (Section 18)

If any person imposes by virtue of any culture, tradition imposes bonded or any other forced labour
on any person shall be punished according to this Act. The punishment would extend to imprisonment
for one year and a fine of one thousand rupees. The bonded labourer will be paid from this extracted
fine i.e. rupee five per day.

4. Punishment for omission or failure to restore possession of the property to bonded

labourers (Section 19)

After the commencement of this Act all the property which was kept on bonds were to be given back
to its original owner, If the person who is required to restore a property, fails to do so shall be
punished with an imprisonment extending to a year or with a fine of rupees one thousand or with
both. This restoration shall be done within thirty days. And the actual owner is given a sum from this
recovered amount charging five rupees per day.

5. Abetment of an offence, punishable (Section 20)

Abetment of an offence in layman’s language means instigating any offence. Here, if any person
instigates an offence shall be punished with the effect of an abetted crime. This is done irrespective
of whether the instigated crime is committed or not.

6. Offences to be tried by Executive Magistrates (Section 21)

The Executive Magistrate is conferred with the powers of a Judicial Magistrate of the first or
second class as per the case by the State government. These Executive Magistrates with the
conferred powers of a Judicial Magistrate will conduct the trial accordingly.

7. Cognizance of offences (Section 22)

Every offence which is included under this Act can be issued with a bail that is offences covered
here are bailable. And also, an investigating officer can arrest the offender without a warrant. The
offences covered here are thereby, categorised as cognizable offences.

8. Offences by companies (Section 23)

If the offence is committed by a company, then all the people associated or were in charge of the
company at the time of the commission of the offence would be held liable and will be punished
accordingly.

If the offence was committed by the neglect of any manager, officer or any other official then he or
she will be liable and will be punished for the same.

❖ Conclusion

The Bonded Labour System (Abolition) Act of 1976 was a great milestone in abolishing the age-old
system of bonded labour which was fast catching the society like a forest fire. The provisions of this
Act uphold the dignity and solemnity of bonded labourers and also restore their property. This Act
had provided them with new wings to fly high with the wind of rights and a platform to address their
grievances. Now with this Act, the bonded labourers are free and unchained and are all set to face
this accelerating world with its fullest might.

Question 3: The Equal Remuneration Act, 1976

The basic concept underlying, the very controversial subject, Feminism, is “equity”. Equity refers to a
treatment of equal with equals and Unequal with unequals. The Equal Remuneration Act, 1976 (the
Act) does just that. It provides for Equal remuneration both men and women, but also understanding
the fact that it will not override any special treatment provided to women in the country. There was a
time in India when women used to face heavy discrimination in pay. But, after the advent of this Act,
women have been able to sue malpractices prevailing in their workplace.

❖ Payment of Remuneration at Equal Rates to Men and Women Workers and Other
Matters

Chapter 2 of the Act, provides for payment of remuneration at Equal Rates to Men and Women
workers and other matters.

❖ Duty of employer to pay equal remuneration to men and women workers for the same
work or work of similar nature

In the case of People’s Union of Democratic Republic v. Union of India 1982, women were only
paid 7 per day as opposed to 9.25 per day for male workers. After hearing both sides, Justice P.N.
Bhagwati held that the authorities need to make sure that the men and women both are paid at par to
each other for similar amount of work.

❖ No discrimination to be made while recruiting men and women workers

The Act suggests that there must not be discrimination in recruitment of personnel on the basis of
ground of sex. The section states that there must be no discrimination in remuneration from the
commencement of the Act and provides an exception regarding employment of women is prohibited.
There are certain places which are hazardous for employment of women and children, the section
provides immunity from employment at those places.

❖ Advisory Committee

Section 6(1) of the Act states that an Advisory committee must be created which will aid the
purposes increasing employment opportunities. The government is taking all possible steps in making a
change in the remuneration policies of the employers in India.

Section 6(2) states, the advisory committee must consist of at least 10 people, which will be
nominated by the appropriate government. Women must consist of one-half of this committee
because that will help in formulation of policies with the help of people who are the real stakeholders.

Section 6(3) states, the factors which make a difference in the decision are:

1. Number of women at work

2. Nature of work
3. Hours of work
4. Suitability of women
5. Need to provide opportunities

❖ Power of appropriate Government to appoint authorities for hearing and deciding

claims and complaints

Section 7 of the Act states, the complaints and claims regarding the infringement of this Act shall
be addressed to the appointed officer. The applicants have to make sure that they have accurate
proof of the commitment of the offence.
The offenders will certainly be sued for any inequality in payment. In cases where the discrimination
is made in two or more works, the consequences will be decided by the appointed officer.

❖ Miscellaneous

There are several miscellaneous duties and powers provided in Chapter III of the Act.

➢ Duty of employers to maintain registers

Section 8 of the Act specifies a duty of Employers to maintain a record of the employees, which
must contain detailed information regarding the remuneration. This is done in order to gauge, if there
is a discrimination in pay on the basis of sex. The ascertainment of offence is important in order to
impose the correct amount of liability.

➢ Inspectors

The inspectors have the following powers while investigation, which are provided in Section 8 of the
Act:

1. Enter the premises at reasonable hours.

2. May call for any official or official documents for examination.
3. May call for evidence at any given point.
4. Examine the employer.
5. Make copies of required documents.

➢ Penalties

Penalties are charged in case; any employer fails to comply with the norms provided in the Act.
Section 10 of the Act specifies that if an employer fails to:

1. Fails to maintain a register;

2. Fails to produce the register when required;
3. Refuses or omits to give evidence as per requisitions;
4. Refuses to give any information;
5. Makes any recruitment in contravention of the provisions of this Act;
6. Makes payments at unequal rates;
7. Makes any discrimination on the basis of sex;
8. Fails to carry out any direction as mentioned in the Act;

shall be punishable with at least a fine of 10,000, which may extend till 20,000 or imprisonment, not
less than 3 months, which may extend to one year. In case of more than one offence, the punishment
will increase, accordingly.

➢ Offences by companies

Section 11 of the Act specifies that if the offence is committed by anybody corporate and includes
a firm or other association of individuals, shall be deemed to be guilty of the offence. Unless, the
person can prove that such an act was done without his or her knowledge or he is she exercised all
due diligence in order to prevent the act from happening.

➢ Cognizance and trial of offences

Section 12 of the Act was amended in 1987, with the Equal Remuneration (Amendment) Act, 1987. It
suggests that Metropolitan Magistrate or a Judicial Magistrate of the first class will be the
authority at the lowest position for reviewing such a case under the Act. The courts are allowed to
take cognizance only on its own knowledge or any complaint made by the appropriate government. An
authorised officer can also complain to such an authority. The aggrieved person is also authorised to
take his or her own complaint to the court. Apart from these, the court shall not entertain any
complaints under the Act.

➢ Power to make rules

The Central Government has the power to make regulations in order to protect the interest of the
employees. Section 13 of the act mentions the powers of the government to form policies and
regulate changes in the Act.

The Houses of Parliament can implement changes by following due procedure. The employers will have
to comply with the norms, so provided.

➢ Power of Central Government to give directions

Section 14 of the Act states that the Central Government has the power to direct the state
government as to the execution of the Act. The state government will have to comply with the
directions, so provided.

➢ Power to make declaration

Section 16 of the Act states exemption from liability of employer in certain circumstances.

The Act also provides for a situation where the employer has to discriminate on the basis of any
ground, but sex, will be exempted from any prosecution, if after complete consideration of the case,
the government deems it fit.

❖ Conclusion

The Equal Remuneration Act, 1976, helps in bridging the gap between unequal remuneration faced by
the women of our country. By the successful implementation of the Act, India is moving closer to
being a country, which treats its men and women equally.

Question 4: Sexual Harassment of Women at Workplace (Prevention,

Prohibition and Redressal) Act, 2013
This Act was essentially derived from the Vishaka Guidelines. The Vishaka Guidelines were certain
procedures to be followed in cases of workplace sexual abuse. These guidelines were formulated
after the landmark case Vishaka and others v. State of Rajasthan.

This case was brought to the Supreme Court because of the sheer inability of the High Court of
Rajasthan to provide justice to Bhanwari Devi who was part of Women's Development Program of the
Rajasthan Government. She was brutally gang raped for stopping a child marriage being conducted in
a town. This was a part of her duties as a member of the Development Program to stop any illegal
activity conducted against children and women. Moreover, this Act uses the definition of sexual
harassment laid down by the Supreme Court in Vishakha and others v State of Rajasthan.
Section 2(a) of the Act defines “aggrieved woman” as:

➢ in relation to a workplace, a woman, of any age whether employed or not, who alleges to have
been subjected to any act of sexual harassment by the respondent;
➢ in relation to dwelling place or house, a woman of any age who is employed in such a dwelling
place or house;

Section 2(n) of the Act defines “sexual harassment” as it includes any one or more of the following
unwelcome acts or behaviour (whether directly or by implication) namely:

➢ physical contact and advances; or

➢ a demand or request for sexual favours; or
➢ making sexually coloured remarks; or
➢ showing pornography; or
➢ any other unwelcome physical, verbal or non-verbal conduct of sexual nature;

❖ Major Features of the Act

1. The Act defines sexual harassment at the work place and creates a mechanism for redressal of
complaints. It also provides safeguards against false or malicious charges.
2. The Act also covers concepts of 'quid pro quo harassment' and 'hostile work environment' as
forms of sexual harassment if it occurs in connection with an act or behaviour of sexual
harassment.
3. The definition of "aggrieved woman", who will get protection under the Act is extremely wide to
cover all women, irrespective of her age or employment status, whether in the organised or
unorganised sectors, public or private and covers clients, customers and domestic workers as well.
4. An employer has been defined as any person who is responsible for management, supervision, and
control of the workplace and includes persons who formulate and administer policies of such an
organisation under Section 2(g).
5. While the "workplace" in the Vishakha Guidelines is confined to the traditional office set-up
where there is a clear employer-employee relationship, the Act goes much further to include
organisations, department, office, branch unit etc. in the public and private sector, organized and
unorganized, hospitals, nursing homes, educational institutions, sports institutes, stadiums, sports
complex and any place visited by the employee during the course of employment including the
transportation. Even non-traditional workplaces which involve tele-commuting will get covered
under this law.
6. The Committee is required to complete the inquiry within a time period of 90 days. On completion
of the inquiry, the report will be sent to the employer or the District Officer, as the case may
be, they are mandated to take action on the report within 60 days.
7. Every employer is required to constitute an Internal Complaints Committee at each office or
branch with 10 or more employees. The District Officer is required to constitute a Local
Complaints Committee at each district, and if required at the block level.
8. The Complaints Committees have the powers of civil courts for gathering evidence.
9. The Complaints Committees are required to provide for conciliation before initiating an inquiry, if
requested by the complainant.
10. The inquiry process under the Act should be confidential and the Act lays down a penalty of Rs
5000 on the person who has breached confidentiality.
11. The Act requires employers to conduct education and sensitisation programmes and develop
policies against sexual harassment, among other obligations.
 The objective of Awareness Building can be achieved through Banners and Poster displayed in the
premises, eLearning courses for the employees, managers and Internal Committee members,
Classroom training sessions, Communication of Organizational Sexual Harassment Policy through
emails, eLearning or Classroom Training. It is recommended that the eLearning or Classroom
Training be delivered in the primary communication language of the employee.
12. Every organization must file an Annual Report to the District Officer every calendar year as
prescribed in the Rule 14 of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Rules, 2013.
13. Penalties have been prescribed for employers. Non-compliance with the provisions of the Act shall
be punishable with a fine of up to ₹ 50,000. Repeated violations may lead to higher penalties and
cancellation of licence or deregistration to conduct business.
14. Government can order an officer to inspect workplace and records related to sexual harassment
in any organisation.
15. Under the Act, which also covers students in schools and colleges as well as patients in hospitals,
employers and local authorities will have to set up grievance committees to investigate all
complaints. Employers who fail to comply will be punished with a fine of up to 50,000 rupees.

❖ Conclusion:

In order to protect women from such crime it is very important to introduce various programmes in
order to protect themselves from such sexual harassment in the employment places, in schools, in
colleges, in any place by any person known, or stranger, to introduce human rights in the syllabus, and
to spread the awareness of human rights amongst the people, to give teachings of loving kindness,
equality and humanity.

Question 5: The Child Labour (Prohibition and Regulation) Act, 1986

The Government of India had promulgated the legislation of The Child Labour (Prohibition and
Regulation) Act, 1986 to regulate provisions related to child labour practices in India. The
Government made substantial changes in the provisions of the Act in the year 2016 and from there
on a complete prohibition has been imposed on the employment of children who are below the age of
14 years. Many provisions have been made under the Act regarding the employment for the children
who are above the age of 14 years.

❖ Definition: Section 2

(ii) "child" means a person who has not completed his fourteenth year of age.

(v) "family", in relation to an occupier, means the individual, the wife or husband, as the case may be,
of such individual, and their children, brother or sister of such individual.

(x) “workshop” means any premises (including the precincts thereof) wherein any industrial process is
carried on, but does not include any premises to which the provisions of section 67 of the Factories
Act, 1948 (63 of 1948), for the time being, apply.

❖ Prohibition of Employment of Children in certain occupations and processes

The Child Labour (Prohibition and Regulation) Act, 1986 aims to eradicate any kind of child abuse in
the form of employment and prohibit the engagement of children in any kind of hazardous
employment, who have not completed 14 years of age. The Act prohibits the employment of children
in certain occupations and processes.

The occupations which are prohibited are mentioned in the Act under the Schedule in Part A. The
prohibited occupations for children under 14 years are:

1. Occupations that are related to the transport of passengers, goods or mails by railway;
2. Cinder picking, clearing of an ash pit or building operation in the railway premises;
3. Working in a catering establishment which is situated at a railway station and if it involves moving
from one platform to another or from one train to another or going into or out of a moving train;
4. The occupation which involves work related to the construction of a railway station or any other
work where such work is done in close proximity to or between the railway lines;
5. Any occupation within the limits of any port;
6. Work which involves the selling of crackers and fireworks in shops having a temporary license;
7. Working in Slaughterhouses.

Prohibited processes for children under the age of 14 years are mentioned under the Schedule
in Part B. They are as follows:

1. The process involving the making of Bidi;

2. The process which involves carpet-weaving;
3. Manufacturing cement or bagging of cement;
4. The processes such as Cloth printing, dyeing, and weaving;
5. The processes that involve the manufacturing of matches, explosives, and fireworks;
6. Mica-cutting and splitting;
7. Any manufacturing process such as shellac manufacture, soap manufacture, tanning;
8. The process of wool-cleaning;
9. Work that is related to the building and construction industry;
10. Manufacture of slate pencils;
11. Manufacture of products from agate;
12. Manufacturing processes in which toxic metals and substances such as lead, mercury, manganese,
chromium, cadmium, benzene, pesticides and asbestos are used;
13. Cashew and Cashew Nut descaling and processing;
14. Soldering processes in electronic industries.

The Act in total prohibits approximately 13 occupations and 51 processes for the employment of
children. Article 24 of the Indian Constitution includes the provision for the prohibition of
employment of children in factories.

❖ Child Labour Technical Advisory Committee

The Central Government may, if it thinks it to be necessary can constitute an advisory committee i.e.,
the Child Labour Technical Advisory Committee by giving notification about it in the Official Gazette.

It is the duty of the Committee to advise the Central Government if there’s a need to add
occupations or processes to the Schedule.

The Central Government appoints the members of the Committee but the Committee should not
exceed more than 10 members. The Committee shall also consist of a Chairman. The Committee may
itself constitute one or more sub-committees if they feel a need to do so. The Chairman and other
members of the Committee are entitled to an allowance.
There isn’t any limitation on the number of meetings Committee shall have. The Committee shall meet
whenever they feel necessary and the meetings shall be regulated according to the procedure which
shall be decided by them.

❖ Regulation of Conditions of Work of Children

There are certain regulations provided under the Child Labour (Prohibition and Regulation) Act, 1986
which the employer needs to follow while employing a child in the establishment. Proper work
conditions are to be provided by the employer.

➢ Application of Part

The provisions of this Part of the Act shall apply to an establishment or any class of establishments
in which the occupations or processes which are referred to in Section 3 are not being carried on.

➢ Hours and period of work

Section 7 of the Child Labour (Prohibition and Regulation) Act, 1986:

1. No child shall be required or permitted to work in any establishment in excess of number of hours
prescribed
2. The period of work on each day shall not exceed three hours and no child shall work for more than
three hours before he has had an interval for rest for at least one hour.
3. No child shall be permitted or required to work between 7 p.m. and 8 a.m.
4. No child shall be required or permitted to work overtime.

➢ Weekly Holidays

Every child who is employed in an establishment shall mandatorily be allowed a holiday each week. The
holiday must be for a whole day. The day of the week must be decided on which it would be a holiday
for the employees of the establishment and the notice regarding the same must be exhibited in a
conspicuous place of the establishment. The notice should be of a permanent nature and should not
be altered more than once in three months.

➢ Notice to Inspector

Notice is needed to be sent to the Inspector within whose local limits the establishment is situated
by the employer of such establishment if he employs a child employee or by the occupier of an
establishment in which a child is employed or is permitted to work.

➢ Dispute as to Age

In case if a question arises between an Inspector and an occupier on the age of the child who was
permitted to work by the occupier in an establishment then the Inspector can prescribe a medical
authority to decide on the age of such a child in case of absence of an age certificate.

➢ Display of notice containing abstract of Sections 3 and 14

The notice containing abstract of Sections 3 and 14 of the Act shall be displayed by every occupier
of the establishment in a conspicuous and accessible place of the establishment and in case the
employer is a railway administration or a port authority then the notice must be displayed in a
conspicuous and accessible place at every station or within the limits of a port as the case may be.
The notice must be written in a local language and in the English language.
 ➢ Maintenance of Register

The occupier shall maintain a register which shall include information with respect to children who
are employed or permitted to work in his establishment. The register which is made available by the
occupier for inspection at all times shall contain:

1. The name and date of birth of the children who are employed by the occupier;
2. Number of hours and period of work for which the child employee is made to work;
3. The nature of employment and the work which the child employee is made to do;
4. Other particulars which may be prescribed.

➢ Health and Safety

The Government may by giving a notification to the Official Gazette make rules for the health and
safety of the children who are employed or permitted to work in an establishment or any class of
establishments if the Government feels necessary to do so. According to the Act the rules which
must be followed by the establishment for the purpose of safety and cleanliness are as follows:

1. The cleanliness of the place of work must be taken care of and it should be free from any kind
of nuisance;
2. There must be a proper place for disposal of wastes and effluents;
3. Proper provisions for ventilation should be made and an adequate level of temperature should
be maintained in the place of work;
4. Provisions should be made to reduce dust and fumes;
5. Artificial humidification shall be made;
6. Lighting must be proper in the place of work;
7. Drinking water must be provided;
8. Toilets must be made in the place of work for the employees;
9. Spittoons should be provided in order to keep the workplace clean;
10. The machines which are in the workplace should be fenced properly;
11. Children must not be allowed to work near machinery which is in motion;
12. Children must not be permitted to work on dangerous machines;
13. Children must be instructed, trained and supervised in relation to the employment of children
on dangerous machines;
14. Device for cutting off power should be used;
15. Self-acting machines should be used in the workplace;
16. Easing of new machinery;
17. Proper floors should be made and proper means to access through stairs shall be made;
18. Pits, sumps, openings in floor shall be made;
19. Child employees shall not be permitted to lift excessive weights while working;
20. Protection for eyes must be provided;
21. Children must not be exposed to explosives or inflammable dust, gas, etc;
22. In case fire is used in work, proper precautions must be taken;
23. Proper maintenance of buildings and machinery shall be taken.

❖ Penalties

Section 14 of the Child Labour (Prohibition and Regulation) Act, 1986

Whoever employs any child or permits any child to work in contravention of the provisions of Section
3 shall be punishable with imprisonment for a term which shall not be less than 6 months but which
may extend to 2 years, or with fine which shall not be less than Rs. 20,000/- but which may
extend to Rs. 50,000/-, or with both.

Whoever employs any adolescent or permits any adolescent to work in contravention of the provisions
of Section 3A shall be punishable with imprisonment for a term which shall not be less than 6 months
but which may extend to 2 years or with fine which shall not be less than Rs. 20,000 but which
may extend to 50,000/-, or with both.

Whoever, having been convicted of an offence under Section 3 or Section 3A commits a like offence
afterwards, he shall be punishable with imprisonment for a term which shall not be less than 1 year
but which may extend to 3 years.

Whoever fails to comply with or contravenes any other provisions of this Act or the rules made
thereunder, shall be punishable with simple imprisonment which may extend to 1 month or with fine
which may extend to Rs.10,000 or with both.

❖ Conclusion

The Child Labour (Prohibition and Regulation) Act, 1986 prohibits children from working in hazardous
employment. The Act has banned certain employments in order to prevent children from being
exploited. The Act lays down provisions for child employment and conditions which has to be fulfilled
by the employer of the child employee. It lays down working conditions, maximum hours or period of
work, safety measures to be taken by the employer, etc. The Government can alter or add provisions
to the Act by giving notification about it to the Child Labour Technical Advisory Committee. If it is
found that the employer is employing a child in contravention of the provisions of the Act then, such
employer will be liable for punishment which includes imprisonment or fine or both.

Question 6: The Contract Labour (regulation and abolition) Act, 1970

The contract labourers are recurrently susceptible to exploitation by the contractors who act as the
link between the workers and the real employer. With lesser wages and poor working conditions, the
workers are pushed to an over a barrel situation, with nearly no regulations. Though the government
had brought out legislation timely, their feeble implementation has made it fall flat time and again.
These woeful states of affairs persuaded to the formulation of the contract labour (regulation and
abolition) Act, 1970 which was a giant leap by the government in the sphere of contractual labourers.

This Act is aimed at imparting justice to the rights of the contractual labourers and to fortify the
welfare of them. It has various guidelines regarding protection, rights and basic amenities prescribed
for the welfare of contract labourers.

❖ Objective and Applicability

This Act mainly deals with resolving the problems woven around contract labourers, protecting them
from exploitation and securing their rights. Adding on to this it aims at abolishing contact labourers
from perineal works and works where permanent labourers can be deployed.
On the factor of applicability, it applies to any establishment with a strength of twenty workmen or
more or had twenty workmen or more on any day in the preceding twelve months. They apply the same
on contractors as well.

❖ Definition: Section 2

(b) a workman shall be deemed to be employed as "contract labour" in or in connection with the work
of an establishment when he is hired in or in connection with such work by or through a contractor,
with or without the knowledge of the principal employer;

(c) "contractor", in relation to an establishment, means a person who undertakes to produce a given
result for the establishment, other than a mere supply of goods of articles of manufacture to such
establishment, through contract labour or who supplies contract labour for any work of the
establishment and includes a sub-contractor;

(e) "establishment" means

➢ any office or department of the Government or a local authority, or

➢ any place where any industry, trade, business, manufacture or occupation is carried on;

❖ Advisory Board

To enhance the enactment of the Act and to guide the government on important provisions concerning
the same subject matter, an advisory board has been set up. This body acts as a consultative wing to
the central and state governments. Further, these advisory boards are of two:

1. Central Advisory Board

For the ease of administration and to perform the functions designated through this Act, the
government at the center shall constitute a board called the Central advisory contract labour board.
This would act as an advisory board to the government of India in matters relating to the above
stated Act.

The composition of the Central advisory board includes, a chairman, chief labour commissioner and
members from specified areas. There shall be a minimum of eleven and a maximum of seventeen
members on the board, they collectively advise the central government on major steps related to the
subject matter.

2. State Advisory Board

Similar to the board which is formed to assist the central government, the state advisory contract
labour board is constituted to advise and aid in the administration of the state government.

The state advisory board will consist of a chairman, a chief labour commissioner in his absence any
member nominated by the state government and members maximum of eleven and a minimum of nine.

These boards are vested with the power to constitute committees, the central and the state boards
are conferred with the rights to shape committees for various matters concerning this Act. The
committee constituted should meet at due time and relevant place, and must be paid an amount as the
fee for attending these meetings. Government officials are exceptions to this provision of getting
fee as cited above as it becomes part of their delegated duty.
❖ Registration of Establishment Employing Contract Labour

According to the provisions revealed under this Act every establishment employing contract labour
shall be duly registered and shall have a registering officer to preside and administrate the whole
mechanisms linked to this Act.

1. Appointment of Registering Officer

To keep a check on the core aspects of this Act the government on a notification in the official
gazette can appoint a person to the post of registering officer who will be a gazetted officer of the
government of India. Also, the limits and the power of the registering officer are mentioned
discreetly.

2. Registration of Certain Establishments

The main employer of an establishment to which this Act concerns shall within the period mentioned
by the government in the official gazette make an application to the registering officer for
registration.

The registering officer if found the application to be fulfilling all the requisites, can register the
establishment and provide the principal employer with a certificate of registration.

3. Revocation of Registration

There is a provision of revoking a registration if found malaise. The registering officer if found,
through any means that the registration was made with the wrong intention or has done by
misrepresentation has the complete right to revoke the registration provided.

This can be done after giving the principal employer a fair chance of hearing and with approval from
the government at the center.

4. Effect of Non-registration

The principal employer of an establishment covered under this Act shall register the establishment
as per this Act. And in the case of revocation under section 8, the contract labour should be
employed back after the commencement of the prescribed date or after the revocation date as the
case may be.

5. Prohibition of Employment of Contract Labour

The government with the consultation of the concerned board under this Act has the right to
prohibit employment of contract labour with a notification through the official gazette.

Before the publication of the notification, the government shall look into the benefit provided and
the working conditions of the contract labour. Another relevant factors involved are the nature of
work that it is perennial or not, can the work be done by employing considerable no. of the permanent
workman, whether the work is done ordinarily and the necessity of that work being done for the
establishment.

❖ Licensing Of Contractors

Every contractor who acts as a link between the contract labour and the principal employer shall have
a license to continue with the same. These are explained as follows:
 1. Appointment of Licensing Officer

The Appointment of a licensing officer goes in the same format as that of the registering officer.
The government on a notification in the official gazette can appoint a person to the post of
registering officer who will be a gazetted officer of the government of India. Also, the limits and
the power of the registering officer are mentioned discreetly.

2. Licensing of Contractors

The government through a notification in the official gazette within a prescribed time can give
license to a contractor. Further, he/she can only work within the preview of the provisions issued in
the license. The provisions can vary from time period to wages given, etc.

The license of a contractor will come into force from the date specified by the government in the
official gazette and the contractor can perform or carry out contract labour only and strictly in the
way prescribed in the license issued. The license constitutes of the working conditions, wages to be
paid etc.

3. Grant of Licenses

The application made for license under Sec. 12 should include all the required information from place
of the establishment to the work which has to be done the contract labourers. And if the licensing
officer finds all this information to be valid then he can issue the license to the contractor. The
license issued will be for a limited period of time on whose expiration an application for renewal has
to be filled.

4. Revocation, Suspension, and Amendment of Licenses

If at a later stage, the licensing officer finds himself or through any other source that the license
was obtained through misrepresentation or fraud then he has the right to revoke or suspend the
license.

Adding on to this if the contractor deviated from the guidelines or conditions prescribed to be
followed mandatory then again, the licensing officer has the right to revoke or suspend the license
after giving the contractor a fair hearing to prove his part.

5. Appeal

If any person is aggrieved by the decision of the registering or licensing officer then he/she can go
forward with the option of appealing with an appellant officer within thirty days of the
communication of the previous order. The appellant officer has complete discretion to consider
appeals filed after the expiry of the above- prescribed date if he is satisfied with the appeal made.

❖ Welfare and Health of Contract Labour

Welfare and health are binary vital aspects of one’s life and also for the progress of the human race
thus taking at most care in this showground becomes very imperative. This Act has taken this aspect
with great gravity and had put forth various provisions in this pitch. These include facilities like;

1. Canteens: Every establishment which is covered under this Act should have a canteen. In
establishments with a hundred or more contract labours then there must be a provision of one
or more canteens. There must be a check without prejudice on the quality of food served, the
rate in which it is served, etc.
 2. Restrooms: Other facilities shall have adequate drinking water facilities, washing facilities, a
sufficient number of urinals and latrines, etc.
3. First Aid Facilities: It is the duty of the contractor to provide at every place where contract
labour is deployed with first aid facilities. This should be available and equipped at working
hours as well.

❖ Liability of Principal Employer

There are certain liabilities which is embedded over the principal employer, failing to which he would
be held liable to bear the penalties. The contractor is liable to provide the contract employee with
the prescribed amenities of canteen, restrooms, and other facilities, etc within the prescribed time.

If the contractor fails to provide the above mentioned, then the principal employer would be held
liable. And the amount required by the principal employer for performing the above-mentioned
amenities can be incurred by him from the contractor.

❖ Responsibility Of Payment of Wages

It becomes the responsibility of the contractor to provide the contract labourers with their
prescribed salary. The principal employer should send one of his trustees to be present at the time
when the contractor distributes the salary amongst the contract labourers. If the contractor fails to
pay the prescribed salary to the workers, then the liability of payment would shift to the principal
employer to pay the contract labourers their wages. The principal employer can alter incur this from
the contractor.

❖ Penalties and Procedures

1. A person or contractor who violates the provisions given under this Act can be punished with
imprisonment for up to three months and a fine of five hundred rupees or both.
2. Any person who contravenes with the provisions given in this Act shall be punished with
imprisonment of three months and a fine of thousand rupees or both.
3. If the company contravenes or commits any wrongful deeds that goes against the Act, then
every person in charge or responsible of the company would be held guilty.
4. If there is no complaint given in writing or any previous sanction then no court can take
cognizance of any offense given under this Act. The presidency magistrate or a magistrate of
the first class only has the right to try such cases.
5. The complaint must be filed within three months of the date of the commission of the offense
had come to notice of the inspector, only then can a court try these offenses. This can be
extended maximum to a period of six months.

❖ Conclusion

On a concluding note, this Act is a giant leap in the pitch of contract labours. Their urge for
protection of their rights and welfare measures which was unheard of for ages was met with and
satisfied by this Act. There are various provisions in this Act that upholds the status and secures
the welfare of the contractual labourers which had to an extent put an end to the exploitation they
had to face these years. This Act provided the contractual labourers with a voice that also has a
medium to be heard now as an outcome of this Act and put their grievances across. Granting the
labourers, a right to be human and live like a human i.e., with dignity, this Act has come a long way
from the prehistoric age of barbarism and suppression.
 Question 7: Employees’ Provident Funds & Miscellaneous Provisions Act,
1952
The Employee Provident Funds, 1952 is a beneficial legislation enacted for the betterment of the
future of industrial worker:

1. On his retirement.
2. For his dependents in case of death of employment.

This Act is enacted as a social security measure which falls under the ground of “retirement
benefit”, the object of this Act is to inculcate, non-withdrawable financial benefit, the sum is payable
normally on retirement or on the death of the employee.

Administration of the scheme given under this act is done by the central board, state board, and
regional committee, a chief executive committee appointed and constituted by the central
government.

➢ Central board - Section 5A

➢ Executive committee – Section 5AA
➢ State board – Section 5B
➢ Regional committee

❖ Definition: Section 2

(c) "contribution" means a contribution payable in respect of a member under a Scheme or the
contribution payable in respect of an employee to whom the Insurance Scheme applies;

(e) "employer" means:

➢ in relation to an establishment which is a factory, the owner or occupier of the factory,

including the agent of such owner or occupier, the legal representative of a deceased owner or
occupier and, where a person has been named as a manager of the factory under clause (f) of
sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and
➢ in relation to any other establishment, the person who, or the authority which, has the
ultimate control over the affairs of the establishment, and where the said affairs are
entrusted to a manager, managing director or managing agent, such manager, managing
director or managing agent;

(f) "employee" means any person who is employed for wages in any kind of work, manual or otherwise,
in or in connection with the work of an establishment, and who gets his wages directly or indirectly
from the employer, and includes any person:

➢ employed by or through a contractor in or in connection with the work of the establishment;

➢ engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961
(52 of 1961), or under the standing orders of the establishment;]

(g) "factory" means any premises, including the precincts thereof, in any part of which a
manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of
power or without the aid of power;

(h) "fund" means the provident fund established under a Scheme;

❖ Central Board: Section 5

Central board is created by official gazette notification given by the Central government. Its
functions are as follows:

1. Section 6 and Section 6C discussions how the central board should use their fund vested on
them.
2. Duty of the central board is to send an annual report to the Central government, of its work
and activities.
3. The central government will submit a report to the comptroller and Auditor General of India.
Comments of Central board is laid down before parliament.

➢ Constitution of the following persons as a member:

1. Chairman and a vice-chairman appointed by the central government
2. The central Provident fund commissioner, ex-official
3. Among Central government officials (not more than five-person)
4. A representative of states (not more than 50)
5. Representing the employer of the establishment (10 people)
6. Representing the employee of the establishment (10 people)

❖ State Board: Section 5B

The central government, after consulting with any of the states constitute the state board in the
following state, as provided for in the scheme. Constitution of the state board is done by the
notification in the official gazette.

Central government from time to time prescribes the duties to be performed by the state board and
the powers exercised by the state government. The following scheme will provide the terms condition
subject to which a member of state board is appointed, time place and procedure for conducting
meetings etc. Every board of trustee constituted under this section is a Body Corporate, being a
body corporate, it has perpetual succession, a common seal and right to sue or get sued in its name.

❖ Regional Committee

Until state board is constituted, the Central Government may set up Regional Committee, which is
under the control of Central Government, it works under the advice of the following person:

1. Central board, when matters referred to it from time to time.

2. All the matter regarding “administration of the Scheme”, such as the progress of recovery of
PF, contribution and other charges, speedy disposal of prosecution, settlement of claims and
sanctions of advances.

❖ Appointment of Central Fund Commissioner

1. The central government shall appoint Central provident fund commissioner, deputy provident
commissioner and regional provident fund commissioner by discharging his duty they will assist
central provident fund commissioner.
2. Chief executive officer is appointed by the central provident fund commissioner.
3. Central Board will appoint other officers, employees for the efficient administration of
various schemes.
❖ EPF & MP Act Features

The employer is under a statutory obligation to deduct a specified percentage of the contribution
from the employee’s salary for provident fund. The employer should also contribute such percentage
for provident fund. An employee who gets more than 15,000 is eligible for getting the provident fund.

This Act contains nearly 20 sections and four schedules.

➢ Applicability of the Act

Section 1 of this Act deals with the application of the Act. This is applicable to every factory
engaged in any industry specified in schedule I.

1. Every establishment in which 20 or more are employed.

2. Any establishment notified by the central government.
3. Any class of such establishment employing 20 or more.
4. This Act is applicable to home workers held in the case Mangalore Gandhi Beedi workers V.
U.O.I and [Link] V. U.O.I.
5. This Act is applied when the establishment satisfies the two tests, namely:
✓ Whether there is an establishment is a ‘factory’?
✓ Whether 20 or more person is employed which is held in the case Andhra University V.
Regional Provident Fund Commissioner.

Some workers will not come under this Act. They are Casual, or temporary workers can’t be
considered as employee held in the case Bikar cold storage co. Ltd. V. Regional PF Commissioner.

➢ Non-applicability of the Act

The Act does not apply to

1. Any establishment registered under the co-operative society Act, 1912.

2. Any state-related co-operative society employed less than 50 people and working without the
aid of power.
3. From the date on which the establishment is set up, where the establishment as:
✓ Only 50 or more persons, after the expiry of 3 years.
✓ Only 20 or more, but less than 50 people before the expiry of 5 years, which is held in the
case V.K. Bhatt V. A.C.B & T. Mfg. Co.

Central Government also has the power to exempt any class of establishment, on such condition
mentioned in the notification:

1. On the ground of financial position.

2. Other circumstances of the case which is held in the case Mohammed Ali V. U.O.I.

Eligibility For getting EPF- Any person is eligible, who is employed:

1. For work of the establishment.

2. Through contractor.
3. Connection with work of establishment is eligible for the benefit of the Act.
❖ Schemes under EPF

➢ Employees provident fund scheme 1952

Section 5 gives wholly unrestricted unguided direction to the central government to frame a scheme,
and it appears on the other hand that the Act has carefully laid down principles to guide the central
government which is held in the case R.P.F. Commr. V. L.R.F Works, 1962.

When they say that this scheme has retrospective effect, the employer cannot be asked to pay the
employees contribution for the period antecedent to the notification applying the scheme because he
has no right to deduct the same for the future wages payable to the employee.

The payment of employee contribution by the employer with the corresponding right to deduct the
same from the wages of the employees could be only for the current period during which the
employer also has to pay his contribution, which is held in the case District exhibitors Assn.
Muzaffarnagar & others V. Union of India, 1991.

They were re-employment by the petitioner on a temporary basis. It was held that the employer
cannot be asked to pay a contribution in respect of re-employed employees on a temporary basis
which is held in the case Bombay printers LTD. & Others V. Union of India and Ors., 1992.

The fund shall be administered by the Central Board constituted under Section 5A of the Act. The
scheme shall take effect either prospectively or retrospectively.

➢ Employee’s deposit linked insurance scheme, 1976:

The scheme Established the purpose of providing life insurance benefits to the employees. The
benefit under the scheme is to provide the incentive to the members to save more in the Provident
fund account. The benefit under this scheme is linked to the amount of accumulation in the Provident
fund account of the member. All the members of the employee’s Provident Fund Scheme are covered
as members of the employee’s deposit linked insurance scheme also.

➢ Employee’s family pension scheme, 1995

For the benefit of providing family pension and life insurance benefit. Following benefit package is:

1. Pension for life to the member, on retirement and invalidation

2. To the member of the family upon the death of the members.
3. Facility for capital return (corpus accretion) on an option formula basis
4. Commutation if pension up to 1/3 Rd of pension amount.
5. Retention of membership of the scheme till attaining the age of 68.

Retirement pension under the new scheme will be payable on fulfilling minimum 10 years eligible
service and on attaining the age of 58 years.

❖ Conclusion

This Act is created mainly for the purpose of encouraging saving during the period of employment,
where they use it in their old age, sickness or for any emergency purposes.
 Question 8: The Maternity Benefit Act, 1961
The Maternity Benefit Act, 1961 is a legislation that protects the employment of women at the time
of her maternity. It entitles women employees of ‘maternity benefit’ which is fully paid wages during
the absence from work and to take care of her child. The Act is applicable to the establishments
employing 10 or more employees.

❖ WHERE DOES IT APPLY? (Section 3)

1. All establishments, including mines, factories and plantations belonging to Government.
2. Any establishment wherein persons are employed for exhibition of equestrian, acrobatic and
other performances.
3. Any shop or establishment under any other law pertaining to shops or establishment in State
where 10 or more people are/were employed, in the preceding 12 months.
4. Except those to which the Employees’ State Insurance Act, 1948 (ESI) are applicable for
the time being. (S.5A & 5B)
5. To women who cannot claim under ESI – Section 50 (because income is above 3000
pm) then they can claim under MBA. (S.5A & 5B)

❖ WHAT IS MATERNITY BENEFIT? (Section 5)

1. Payment at average daily wage for absence from work before and after delivery.
2. Average daily wage rate on which she was absent, which will be the wage which she was
receiving immediately 3 months before her absence which again would come under the
authority of Minimum Wages Act 1948.
3. For period of her actual absence i.e., period immediately preceding day of
delivery, actual day of delivery and any period immediately following that day.

❖ WHOM DOES IT APPLY TO? (Section 5)

1. Woman should have worked for not less than 80 days in the 12 preceding months from
her expected date of delivery.
2. Working period = days the woman was laid-off paid holidays
3. Not to woman who has immigrated into Assam or was pregnant at that time.
4. If the woman dies during delivery or in the period immediately following the delivery and
the child survives, then the employer is liable to pay the full maternity benefit of that
period to the child. (S. 7)
5. But if the child dies, then the benefit is calculated upto and including the date of death of
child.
6. Women engaged in casual or muster roll basis on daily wages also entitled.

❖ NOTICE FOR MATERNITY BENEFIT? (Section 6)

1. Notice in writing (in the prescribed form) to her employer.
2. Maternity amount paid to her or to her nominee (to be specified in the notice)
3. Will not work in any establishment during the period.
4. Advance amount paid before leave and due amount paid on proof that child is delivered.
5. If notice not given before deliver, can be given as soon as possible after delivery.
6. The failure to give notice, however, does not disentitle the woman to the benefit of the Act.
❖ MEDICAL BONUS
1. If free medical care not provided to the woman.
2. Amount of Rs. 3500 (w.e.f. 19-12-2011)

❖ GRANTING OF PAID LEAVE (Section 9-12)

Section Purpose of leave Period Note As per Amendment

Act (2017)

5(3) Pregnancy and 12 weeks Not more than 6 26 weeks (not more
delivery weeks preceding than 8 weeks
delivery preceding delivery)

Irrespective of the Only for first two

number of children children, then only
had 12 weeks

9 Tubectomy operation 2 weeks Starting immediately No change

the next date
following

10 Illness – due to Upto 1 month In addition to: No change

pregnancy, delivery,
Absence allowed
miscarriage, medical
under Section 6 &
termination,
Section 9
tubectomy operation

11 Nursing breaks Two breaks of In addition to the No change

prescribed absence allowed to
duration her during the course
of daily work

❖ ADDITIONAL REASONS FOR LEAVE MENTIONED IN AMENDMENT ACT, 2017

1. Adoptive mothers – child below 3 months of age – 12 weeks leave.
2. Commissioning mother (having surrogate child) – from the day the child is handed over to
her for 12 weeks.
3. Option to work from home – immediately from the next date after the maternity leave is over
– till mutually decided by the employer and employee – only if the nature of work assigned to
her permits her.

❖ UNLAWFUL DISMISSALS (Section 12)

1. During or on account of such absence.
2. Give notice that will expire during her period of absence
3. During her pregnancy such that she cannot avail the benefits (unless it is gross misconduct
and properly communicated to the woman).
❖ PENALTY FOR CONTRAVENTION
1. For non-payment of benefit or dismissing or discharging
2. Punishment of imprisonment not less than 3 months upto 1 year

❖ Definition: Section 3

(a) "appropriate Government" means, in relation to an establishment being a mine, or an

establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other
performances, the Central Government and in relation to any other establishment, the State
Government;

(d) "employer" means

➢ in relation to an establishment which is under the control of the Government, a person or

authority appointed by the Government for the supervision and control of employees or where
no person or authority is so appointed, the head of the department;
➢ in relation to an establishment under any local authority, the person appointed by such
authority for the supervision and control of employees or where no person is so appointed, the
chief executive officer of the local authority;
➢ in any other case, the person who, or the authority which, has the ultimate control over the
affairs of the establishment and where the said affairs are entrusted to any other person
whether called a manager, managing director, managing agent, or by any other name, such
person;

(e)"establishment" means

➢ a factory;
➢ a mine
➢ a plantation;
➢ an establishment wherein persons are employed for the exhibition of equestrian, acrobatic and
other performances;
➢ a shop or establishment; or
➢ an establishment to which the provisions of this Act have been declared under sub-
section (1) of section 2 to be applicable;

(f) "factory" means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of
1948);

(g) "Inspector" means an Inspector appointed under section 14;

(h) "maternity benefit" means the payment referred to in sub-section (1) of section 5;

❖ Conclusion

The objective of maternity benefits is to safeguard the dignity of motherhood by providing proper
care and consideration to the child and mother when she is not able to fulfil her duties due to health
reasons.
 Question 9: Minimum Wages Act, 1948
Minimum Wages Act 1948 came into force in India when India had recently gained its freedom. Labor
laws made by the Britishers were exploitative in nature. Wages were low and different in every part
of the country. There was no such thing as “Minimum Wages” and times were pretty bad for sweat
labor.

It came to bring equality and justice to the blue-collar people. Pay fixing experts were guided by the
standards recommended by the Fair Wage Committee in the settlement of issues identifying with
wage problems in organized industries. The Fair Wage committee explained the core of minimum
wages, but they didn’t say how to evaluate the minimum wage.

The 15th session of the Indian Labor Conference explained the necessary physical requirements and
health maintenance of the labours.

❖ Definitions: Section 2

(b) "appropriate Government" means

➢ in relation to any scheduled employment carried on by or under the authority of the 2[Central
Government or a railway administration], or in relation to a mine, oilfield or major port, or any
corporation established by 3[a Central Act], the Central Government, and
➢ in relation to any other scheduled employment, the State Government;

(e) "employer" means any person who employs, whether directly or through another person, or
whether on behalf of himself or any other person, one or more employees in any scheduled
employment in respect of which minimum rates of wages have been fixed under this Act, and includes,
except in sub-section (3) of section 26:

➢ in a factory where there is carried on any scheduled employment in respect of which minimum
rates of wages have been fixed under this Act, any person named under clause (f) of sub-
section (1) of section 7 of the Factories Act, 1948, as manager of the factory;
➢ in any scheduled employment under the control of any Government in India in respect of which
minimum rates of wages have been fixed under this Act, the person or authority appointed by
such Government for the supervision and control of employees or where no person or authority
is so appointed, the head of the department;
➢ in any scheduled employment under any local authority in respect of which minimum rates of
wages have been fixed under this Act, the person appointed by such authority for the
supervision and control of employees or where no person is so appointed, the chief executive
officer of the local authority;
➢ in any other case where there is carried on any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act, any person responsible to the owner
for the supervision and control of the employees or for the payment of wages;

(g) "scheduled employment" means an employment specified in the Schedule, or any process or
branch of work forming part of such employment;

(h) "wages" means all remuneration, capable of being expressed in terms of money, which would, if
the terms of the contract of employment, express or implied, were fulfilled, be payable to a person
employed in respect of his employment or of work done in such employment and includes house rent
allowance, but does not include:
 ➢ the value of:
✓ any house, accommodation, supply of light, water, medical attendance, or
✓ any other amenity or any service excluded by general or special order of the
appropriate Government;
➢ any contribution paid by the employer to any Pension Fund or Provident Fund or under any
scheme of social insurance;
➢ any travelling allowance or the value of any travelling concession;
➢ any sum paid to the person employed to defray special expenses entailed on him by the nature
of his employment; or
➢ any gratuity payable on discharge;

(i) "employee" means any person who is employed for hire or reward to do any work, skilled or
unskilled, manual or clerical, in a scheduled employment in respect of which minimum rates of wages
have been fixed; and includes an out-worker to whom any articles or materials are given out by
another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or
otherwise processed for sale for the purposes of the trade or business of that other person where
the process is to be carried out either in the home of the out-worker or in some other premises not
being premises under the control and management of that other person; and also includes an employee
declared to be an employee by the appropriate Government; but does not include any member of the
Armed Forces of the Union.

❖ Scope and Objective of the Minimum Wages Act

1. Minimum wages need to be ensured to all blue-collar workers in the organized sector.
2. Prohibition of exploitation of labour in the workplace.
3. To safeguard that the employee has a basic physical necessity, proper health, and comfort.
4. To ensure that the labor lives a decent life and have a respectable name in society.
5. The Act would empower the government to fix minimum wages and revise those wages from
time to time according to the economic situation of the country.
6. To ensure the application of this Act to a maximum number of organized sector employers.

❖ Salient Features of the Act

1. The Act specified minimum wages for all government sector employees including central and
state government.
2. The minimum wages are equal to minimum payment + Special allowances including house rent
allowances.
3. The wage-fixing mechanism according to the act is minimum wage rate, minimum piece rate,
guaranteed time rate and price rate applicable to overtime.
4. There are different classes for fixing minimum wages including different scheduled
employments, different classes of work in the same scheduled employment, adults,
adolescents, children, apprentices and different localities.
5. There are standard criteria for fixing minimum wages.
6. The food requirement must be ascertained by the regular calorie intake by the family.
7. 25% of the total wage is also considered to be social expenditure.
8. The minimum wages must be revised every five years and the same has to be announced every
six months.
9. The regional labour commission shall be the authority for claiming the remedy under section
20 of the minimum wages act, 1948.
❖ Criteria for Fixing Minimum Wages

According to section 3 of the Minimum Wages Act 1948 “The Appropriate Government” will fix
minimum wages. Appropriate Government can include local, State and Central Government. This
section sets the rate according to hours, days, months or any other wage period may be prescribed.

The rates to be fixed need not be uniform. Diverse rates can be fixed for various zones or areas. If
the wages are fixed according to section 4 of the Payment of the Wages Act, 1936, the fixing will be
done according to the Act.

➢ Minimum Wages are fixed according to the following criteria:

1. Time Rate – The minimum rate is fixed according to the duration of the work done by the labor.
2. Piece Rate – Here the minimum wage is fixed by the total number of pieces manufactured in the
factory.
3. Overtime Rate – Here the minimum rate is fixed by the overtime done by the labor regardless of
the time or piece rate.

❖ Wage Committee

A wage committee shall be formed by the appropriate government, which shall consist of members
from both the employer and employee side. Therefore, an independent person with having no interest
in the employment scheme shall be appointed as the chairman of the wage committee. The
appointment process in the Minimum Wages Act is made in this way so that there is no scope of
discrimination to the labours.

❖ Advisory Board

Section 7 of the Minimum Wages Act, the Advisory Board, which proposes recommendations and
changes to be brought in labor laws. The advisory board proposes a recommendation to the State and
Central Government in fixing the minimum wages.

According to Section 9 of the Act, it talks about the appointment of committees and subcommittees.
The included members are:

➢ A person appointed by the Appropriate Government.

➢ Employers and employees, who belong to the scheduled employment and they shall be equal in
number.
➢ Independent persons and they shall not exceed one-third of the total number of members. An
independent person will be appointed as chairman of the committee.

❖ Wages in Kind

Section 11 says that the wages shall be paid in cash. If somewhere, the payment is done either
wholly or partly and if it is a customary process, then in that the case, the government through a
notification in the official gazette shall enforce the payment partly or wholly.

❖ Payment of minimum rates of wages

The payment shall be made to the employees in order which is prescribed by law under this Act.
However, it is also mentioned that nothing in this Act can affect the provisions laid down in the
Payment of Wages Act, 193. Section 12 of the Act fixes the payment of minimum wage.
❖ Fixing hours of normal working days

Section 13 provides for the fixing of normal working hours in a working day. The fixation of normal
working hours includes:

1. The fixed number of working hours will include intervals from time to time.
2. The fixed period must also include a day of rest in every seven days.
3. The rest day must also be included in the pay, payment for not less than the overtime rate.

There are certain exceptions related to those employees whose work is of nature that is irregular.
Such exceptions will be provided only after the consent of the appropriate government.

❖ Overtime

If any employee works for more than prescribed hours then that person is entitled to excess
payment for that period. However, it is also mentioned that nothing in this Act must be prejudicial
to Section 59 of the Factories Act, 1948. Section 14 of the Act provides for overtime.

❖ Wages for two or more classes of work

When two or more classes of work are performed by a single employee, the minimum wage will be
altered according to the time invested in each class of work and remuneration provided in such work.
Section 16 of the Act, this practice is mentioned.

❖ Minimum time-rate wages of piece work

The minimum time rate must be given to those who are employed on the piece-rate system. The
system must not be a minimum piece rate but only minimum time rate. The minimum time rate is a
system, where the wages are paid on the basis of the time worked. Section 17 of the Act provides
for this clause.

❖ Maintenance of registers and records

The employers are supposed to maintain a record register in order to ascertain that all the
employees are being minimum wages. This register also needs to be exhibited and must be available
for perusal at all times. The authorities are supposed to check these registers. Section 18 of the
Act provides for this clause.

❖ Inspectors

Inspectors are appointed by the appropriate government in order to make sure that the
administration is carried out well. There are certain powers which are given to the inspectors, which
are listed below:

1. The inspectors may enter any premises in order to carry out investigations regarding the minimum
wage remuneration.
2. The inspectors may examine or give any information important to the investigation.
3. They also have the seize or make copies of any of the documents important to the investigation.

❖ Claims

Claims are heard by the authorities appointed under subsection 1 of Section 20 of the Act. Every
authority appointed under sub-section (1) shall have all the powers of a Civil Court under the Code of
Civil Procedure, 1908. Claims can be made to the appropriate authority so that the appropriate action
may be taken as soon as possible.

❖ Consequences of Non – Compliance

Non- compliance of the Minimum wages act, i.e., not paying minimum wages is a culpable
offense. Hence, violation of fixing hours also attracts the penal provision.

Imprisonment up to 5 years and a fine up to 10,000 is the maximum punishment that can be awarded.
Section 22 of the Act deals with sanctions.

❖ Conclusion

The Minimum wages Act, 1948 brought about a revolution in the employees’ wage systems because the
relief provided in this Act provides for complete protection from exploitation of manual labour at the
workplace.

Question 10: The Payment of Bonus Act of 1965

The Payment of Bonus Act of 1965 imposes a contractual obligation on employers to pay bonuses to
employees in proportion to the resources available for the establishment's smooth functioning. The
Act's purpose was to give workers a say in the company's profits and to enable them to earn slightly
more than the minimum wage based on their performance.

It was decided at the second and third meetings of the eighteenth Session of the Standing Labour
Committee (G.O.I) in New Delhi in March/April 1960 to appoint a Commission to look into the issue of
bonuses and develop appropriate norms. The Government of India established a Tripartite
Commission to examine the issue of bonus payments based on earnings to employees working in
establishments in a detailed manner and make recommendations to the Government.

The Commission's recommendations were adopted by the Indian government with some modifications.
The Payment of Bonus Act of 1965 was enacted to carry out these recommendations, and it went into
effect on September 25, 1965.

❖ Scope & Applicability of the Act

The Bonus Payment Act covers the entire India. It covers any establishment with twenty or more
employees on any given day during the accounting year, as well as any factory as specified by the
Factories Act of 1948.

Employee is defined in Section 2 (13) of the Act as any person (other than an apprentice) employed
on a salary or wage of not more than twenty-one thousand rupees per mensem in any industry to
perform any skilled or unskilled manual, supervisory, managerial, administrative, scientific, or clerical
work for hire or compensation, regardless of whether the terms of employment are express or
implied.
 ➢ The Act does not apply to the following classes of employees:

1. Employees employed in:

a. Life Insurance Corporation of India
b. Industry carried on or under the authority of any department of Central Government or a
State Government or a Local Authority.
c. Indian Red Cross Society or any other institution of like nature including its branches;
d. Universities and other educational institutions;
e. Hospital, Chambers of Commerce and Social Welfare Institutions established not for purposes
of profits;
f. employed through contractors on building operations;
g. Reserve Bank of India;
h. Industrial Finance Corporation of India, Deposit Insurance Corporation and other financial
corporations being set up financially assisted by the Government, and Unit Trust of India,
Agricultural Refinance Corporation, and Industrial Bank of India,
i. Seamen as defined in Sec. 3(42) of the Merchant Shipping Act, 1958;
j. Inland Water Transport establishment. (Section 32).

❖ Objective Behind the Act

The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the
persons employed in certain establishments on the basis of profits or production.

The object of the Payment of Bonus Act was very clearly described in Jalan Trading v Mill Mazdoor
Sabha, the Supreme Court observed that the purpose of the Bonus Act was to maintain peace and
harmony between labour and capital by allowing workers to share the prosperity of the establishment
and prescribing the maximum and minimum rates of bonus, as well as the scheme of "set-off" and set
- on to not only secure the labour's right in the share of profits but also to ensure a reasonable
degree of uniformity.

❖ Bonus As Under the Act

The word "bonus" is not specified anywhere in the bonus payment act. A bonus is a monetary reward
that is above and beyond the standard payment. According to the Cambridge dictionary, a bonus is an
additional sum of money offered to you as a gift or incentive for good performance. The primary goal
of providing bonuses is to distribute the company's profits to its workers and employees.

The bonus commission in its report suggested "It is difficult to define in rigid terms the concept of
bonus, but it is possible to urge that once the profits exceed a certain base, labour should
legitimately have a share in them”. In other words, we think it to construe the concept of bonus as
sharing by the workers in the prosperity of the concern in which they are employed.

This has also the advantage that in the case of low paid workers sharing in prosperity augments their
earnings to bridge the gap between the actual wage and the need-based wage. If it is not feasible to
better the standard of living of all the industrial and agricultural workers as aimed at in Article 43 of
the Constitution it is nothing wrong in endeavouring to do so in respect of those workers whose
efforts have contributed to the profits of the concern in which they have worked.
❖ Eligibility For Bonus Under the Act

The payment of bonus is a statutory right under the act and According to the Section 8 of the act,
any employer who has worked for a minimum of 30 days in an accounting year, shall be eligible for a
bonus.

In East Asiatic Co. Ltd. Vs Industrial Tribunal, it was held that a retrenched employee is eligible
for bonus if they worked for a min of 30 days and have a salary of 10,000 pm in a year.

In the case of J. K. Ginning & Pressing Factory v. Second Labour Court, Akola & Others, a
factory employed ten seasonal employees, and the issue of their bonus eligibility arose. The Bombay
High Court ruled that the Act does not exclude such seasonal workers from employment; the only
criterion for eligibility is that they meet the Section 8 requirements. As a result, even seasonal
employees were deemed to be entitled to bonus payments under the Act.

❖ Disqualification From Bonus Under the Act

According to Section 9 of the act an employee shall be disqualified from receiving bonus under the
Payment of Bonus Act, 1965, if he is dismissed from the service for:

➢ Fraud, or
➢ Riotous or violent behaviour while on the premises of the establishment, or
➢ Theft, misappropriation or sabotage of any property of the establishment

This provision is based on the recommendation of Bonus Commission, which stated that:
After all, bonus can only be shared by those workers who promote the stability and well-being of the
industry, not by those who positively exhibit disruptive tendencies. Bonuses, without a doubt, impose
a duty of good behaviour.

The appellant, a bus conductor working for a government of Tamil Nadu undertaking, was dismissed
from service in Pandian Roadways Corporation Ltd. vs. Presiding Officer 5. Following that, the
petitioner and management reached an agreement, and the petitioner as appointed as a new entrant.
Following that, the petitioner claimed a bonus of Rs 1,842 for the duration after his re-appointment.
the court ruled in the case that " If an employee is dismissed from service, he is disqualified from
receiving any bonus under the said Act, not just the bonus for the accounting year," the court ruled.

In Gammon India Ltd Vs Niranjan Das 6, the court held that an employee who is dismissed from
service for fraud, riotous or aggressive behaviour on the premises of the company, or who is guilty of
theft, misappropriation, or sabotage of any establishment's property is disqualified from receiving
bonus for the accounting year under section 9 of the Payment of Bonus Act, 1965. A dismissed
employee who has been reinstated with back pay has evidently not committed the above crimes and
has not been fired. As a result, he is entitled to a bonus.

❖ Rights of Employer & Employee

➢ The Said act defines the rights available to the employees as defined below:
1. Right to claim bonus due under the Act, which allows them to make a request to the government
for payment and recovery of bonus amounts that are not paid to them within one year of their due
date
2. The right to take any dispute to a Labour Court or Tribunal; however, it is necessary to remember
that employees who are not entitled to bonuses are unable to take their case to a Labour Court or
Tribunal.
3. Right to seek clarity to obtain details about whatever products are in the name of the business so
that they can determine whether or not they are being fairly compensated for their services.

➢ The rights available to the Employer against any exploitation or the protection of their
business are given as below:
1. Rights to bring any dispute to the Labour Court or the Tribunal over a request for an
interpretation of any clause of the Act.
2. Right to deduct a fair amount from an employee's bonus on account of a bonus already paid as a
festival bonus or in the event of a monetary loss caused by the employee's misbehaviour.
3. Right to deduct the value of a bonus paid to an employee who has been fired for misbehaviour,
offensive behaviour, or obstructing the establishment's land.

❖ Payment of Minimum Bonus

Section 10 of the Act states that, regardless of whether the employer has some allocable surplus in
the accounting year, each employer must pay each employee a minimum bonus equivalent to 8.33
percent of the employee's salary or wage earned during the accounting year, or one hundred rupees,
whichever is greater. However, if an employee is under the age of fifteen at the start of the
accounting year, the terms of this Section refer to that employee as if the words "one hundred
rupees" were replaced with "sixty rupees." Section 10 of the Act does not contradict Articles 19 and
301 of the Constitution. Even if the employer loses money during the fiscal year, he must pay the
minimum bonus as according to section 10 of the act.

In J.K. Chemicals Ltd. vs. Govt. of Maharashtra7 the court held that the company would not be
relieved from its liability to pay minimum bonus, if the bonus liability is negligible in comparison to the
loss incurred. If the employer's damages were not caused by employee wrongdoing, the employer
must pay the statutory minimum bonus.

❖ Payment of Maximum Bonus

If the allocable surplus for any accounting year referred to in Section 10 exceeds the amount of the
minimum bonus available to workers under that Section, the employer is allowed to pay a bonus equal
to each employee's salary or wage received during that accounting year. In determining the allocable
surplus under this Section, the amount set on or set off under the provisions of Section 15 must be
taken into account in accordance with those provisions.

❖ Maintenance of registers, records, etc

Every employer is responsible to maintain records and register in the manner as it is prescribed in
the provisions of this Act.

❖ Inspectors

The government by way of notification in the official gazette may appoint a person to be an inspector
under the provision of this Act.

The inspector can enter any premises at a reasonable time and ask for an examination of the
accounts. The employer is legally bound to furnish the information asked by the inspector.
❖ Penalty

If any person contravenes a provision of this Act or fails to comply with any of the directions made
under this Act, it would be punishable for imprisonment which shall extend up to 6 months or fine up
to ₹ 1000 or both.

❖ Conclusion

The Payment of Bonus Act of 1965 aims to legalise the practise of various establishments paying
bonuses. It provides a mechanism for calculating bonus based on profit and performance. It allows
workers to make more money than the minimum wage or salary. This Act establishes various
procedures for different types of businesses, such as banks and government agencies, as well as
businesses that are not corporations or firms. This Act also establishes a rigorous redress process in
addition to the procedure.

Question 11: The Payment of Gratuity Act, 1972

The Payment of Gratuity Act is a genre of various statutes like the Minimum Wages Act, Employment
and Social Policy, etc. which is an extension of labour laws and it lays down the minimum benefits to
be provided to the employees. It is a social security enactment providing for the welfare benefits of
the employees working in industries, companies and organisations.

❖ Scope and Objective

The Payment of Gratuity Act, 1972 was enacted with sole objective of providing gratuity i.e., a
monetary award given for services rendered to the employees working in the factories, oilfields,
mines, plantations, railway companies, shops or other establishments upon their superannuation (e.g.,
old age retirement amount, etc.), retirement, resignation, death or disablement.

❖ Definition: Section 2

(e) "employee" means any person (other than an apprentice) employed on wages, in any establishment,
factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or
unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are
express or implied, and whether or not such person is employed in a managerial or administrative
capacity, but does not include any such person who holds a post under the Central Government or a
State Government and is governed by any other Act or by any rules providing for payment of
gratuity.

(f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway
company or shop:

➢ belonging to, or under the control of, the Central Government or a State Government, a person
or authority appointed by the appropriate Government for the supervision and control of
employees, or where no person or authority has been so appointed, the head of the Ministry or
the Department concerned.
➢ belonging to, or under the control of, any local authority, the person appointed by such
authority for the supervision and control of employees or where no person has been so
appointed, the chief executive office of the local authority.
 ➢ in any other case, the person, who, or the authority which, has the ultimate control over the
affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop,
and where the said affairs are entrusted to any other person, whether called a manager,
managing director or by any other name, such person.

(g) "factory" has the meaning-assigned to it in clause (m) of section 2 of the Factories Act, 1948.

(h) "family", in relation to an employee, shall be deemed to consist of –

➢ in the case of a male employee, himself, his wife, his children, whether married or unmarried,
his dependent parents and the dependent parents of his wife and the widow] and children of
his predeceased son, if any,
➢ in the case of a female employee, herself, her husband, her children, whether married or
unmarried, her dependent parents and the dependent parents of her husband and the widow
and children of her predeceased son, if any.

(q) "retirement" means termination of the service of an employee otherwise than on superannuation;

(r) "superannuation" in relation to an employee, means the attainment by the employee of such age as
is fixed in the contract or conditions of service at the age on the attainment of which the employee
shall vacate the employment.

(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in
accordance with the terms and conditions of his employment and which arc paid or arc payable to him
in cash and includes dearness allowance but does not include any bonus, commission, house rent
allowance, overtime wages and any other allowance.

❖ Payment of Gratuity

An employee is entitled for the payment of gratuity if he/she has rendered five years of continuous
service on his superannuation, retirement, resignation, death, disablement. However, the five years of
continuous service is not mandatory in the case where the termination is due to death or disablement.
A retired person is also entitled to gratuity amount along with his pension. This was held in the case
of Allahabad Bank and others v. All India Allahabad Bank Retired Employees Association, where
the honourable court held that pensionary benefits may include both pension amount and gratuity
amount but gratuity amount is a must to be paid to the employees.

In the case of death or disablement by accident or disease, the employer is under obligation to pay
the gratuity amount to the employee’s nominee or the legal heir, as the case may be, irrespective of
the number of years continuous services has been rendered.

The Act also has a provision for the minors as a legal heir in which the controlling authority has to
invest the amount in such banks or other financial institutions for the benefit of the minor until
he/she becomes a major.

Further, the Act provides for the services rendered for at least 6 months where the gratuity amount
will be calculated at the rate of fifteen days wages based on the rate of wages last drawn by the
employee concerned, provided that the amount paid for the overtime work will not be considered.

➢ The amount of gratuity shall not exceed Rs. 10 Lakhs:

An employee holds a right to receive a gratuity for services rendered, however, this right of an
employee can be curtailed in two conditions:
1. If the termination is due to wilful omission or negligence causing loss, or damage, or destruction
of property belonging to the employer.
2. If the termination is due to riotous or disorderly conduct or constitutes of an offence which is
immoral in nature.

❖ Power to Exempt

The Act provides the power to exempt to the appropriate government by notification to declare any
establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted from
gratuity if the government is of the opinion that the establishment has favourable benefits not less
than what this Act has been providing. The same law applies to any employee or class of employees.

❖ Nomination

According to this Act, it is necessary for the employee to prescribe for the name/names of the
nominee soon after completing one year of service. In case of a family, the nominee should be one
among the family members of the employee and other nominees shall be void. Any alteration or fresh
nomination must be conveyed by the employee to the employer who shall keep the same in his safe
custody.

❖ Determination of the Amount of Gratuity

The person entitled to receive the gratuity amount shall send an application in writing to the
employer. The employer shall calculate the gratuity amount and provide notice in writing to the
concerned employee and the controlling authority. The payment should be made within 30 days from
the date payable to the employee. Failure of payment within the prescribed limit will result in
payment of simple interests. However, if the delayed payment is because of the employee then the
employer is not entitled to pay the simple interests.

The disputes arising between the employee and employer shall be referred to the controlling
authority and proceeding for the resolution presided by the controlling authority shall be considered
to be judicial proceeding. The controlling authority has the authority to enforce the presence of any
person and examine his oath, production of relevant documents and issuing commissions for the
examination of witnesses if required. After due inquiry and giving the parties a reasonable
opportunity of being heard, the controlling authority may determine the matters and pass
appropriate orders. The aggrieved party can apply for appeals to the government.

❖ Inspectors Appointed for the Purpose of this Act and their Powers

The government may appoint an inspector or inspectors who are deemed to be a public servant
under Section 21 of Indian Penal Code for the purpose of ascertaining whether any of the provisions
of this Act are being violated or not complied with and take necessary measures to ensure the
fulfilment of all the provisions of this Act.

❖ Recovery of Gratuity

If the employer delays in the payment of gratuity amount under the prescribed time limit, then the
controlling authority shall issue the certificate to the collector on behalf of the aggrieved party and
recover the amount including the compound interest decided by the central government and pay the
same to the person. However, these provisions are under two conditions:
 1. The controlling authority should give the employer a reasonable opportunity to show the cause
of such an Act.
2. The amount of interest to be paid should not exceed the amount of gratuity under this Act.

❖ Penalties

Violation of the provisions of the Act shall entail certain penalties. They are:

1. For avoiding any payment, if someone makes a false representation or false statement shall be
punishable with imprisonment for 6 months or fine up to Rs. 10,000 or both.
2. Failure to comply with the provisions of this Act shall be punishable for a minimum of 3
months which may extend upto 1 year or a fine of Rs. 10,000 which may extend upto 20,000.
3. Non-payment of gratuity under the Act will lead to offence and the employer shall be
punishable with imprisonment for at least 6 months and which may extend upto 2 years unless
the court provides for the sufficient reason for less payment.

❖ Exemption of Employer from Liability

An employer if charged with any offence punishable under this Act, shall be exempted from any
liability, if he provides sufficient reasons for his conduct of the act or some other person doing that
act without his knowledge. The other person if found guilty will be charged with the same punishment
as an employer shall be charged.

❖ Cognizance of Offences

The court cannot take cognizance of the offences punishable under this Act unless the amount of
gratuity to be paid has not been paid or recovered within 6 months from the expiry of the prescribed
time. In such cases, the government shall authorise the controlling authority to make a complaint
where the authority has to make a complaint to the metropolitan magistrate or judicial magistrate of
first class within 15 days of the authorisation.

❖ Protection of action taken in good faith

The controlling authority shall not be under any legal proceeding if the acts done by him is in good
faith or under any rule or any order.

❖ Protection of Gratuity

No exempted gratuity which is payable under this Act to the employee by the employer shall be liable
to the attachment of any order or decree by any court.

❖ Conclusion

The Payment of Gratuity Act, 1927, is a welfare statute provided for the welfare of the employees
who are the backbone of any organisation, company or start-ups. The gratuity amount encourages the
employee to work efficiently and improve productivity.

Recently, by the Payment of Gratuity (Amendment) Act, 2018, the central government has tried to
promote social welfare by providing leverage to the female employees who are on maternity leave
from 12 weeks to 26 weeks.
 Question 12: Unorganised Workers Social Security Act, 2008
According to the report of the National Commission on Labour in 1969.

‘Unorganized workers’ are other groups of workers who are not covered under the definition and can
organise in pursuit of a common goal due to force such as:

1. Casual nature of employment.

2. Ignorance and illiteracy.
3. Establishment of small size with the low capital invested per person employed.
4. Scattered nature of establishments.
5. Muscular strength of the employer operating either singly or in combination.

National Commission also gives some categories of workers, which can be categorised as unorganised
workers, which are the following:

1. Contract-based worker and it also includes workers engaged in the construction work.
2. Informal(casual) labour.
3. Labour engaged in small industry.
4. Handloom/ power worm workers.
5. Beedi and cigar workers.
6. Employed in shops and commercial establishments.
7. Sweepers and scavengers.
8. Workers in teaberries.
9. Tribal labour.
10. Other unprotected labour.

❖ Objective & Purpose

The UWSS Act 2008 was implemented with the objective to ensure social security, good wellbeing
and to protect the unorganised sector workers from several contingencies. The importance of the act
came to light in 2012 in National Domestic Workers Welf. v. State of Jharkhand & Ors. wherein
it was highlighted that the current labour laws in force such as the Industrial Disputes Act, the
Minimum Wages Act, Maternity Benefit Act, the Workmen's Compensation Act, Factories Act, etc.
are applicable to a restricted number of workers.

In India, the social security laws have derived their basis from Part IV of the Directive Principles of
State Policy (DPSP). The Social security and Labour Laws form a part of the concurrent list
therefore both, the Central and the State Governments are approved to make laws for the same. It
is the obligation of the state to lay down provisions which grant social security to organised as well as
unorganised sector workers.

Another purpose of the act is to ensure that the needs of the workers employed in the unorganised
sector are addressed as it contributes to the sustainable economic growth in the country. Apart from
Social security the needs include availability of credit, upskilling, use of modern technology,
infrastructure and the requirement of a contractual obligation between the employer and employee.
❖ Salient Features of the Act

1. The Act mentions about constitution of a National Social Security board and State Social
Security Board which will give recommendation for formulation of suitable schemes which
later shall be monitored and reviewed.

In Rajan Kudumbathil v. Union of India on 12 November 2009, the Kerala government was directed
to immediately constitute the State Social Security Board as it was not established post the
enactment of the act.

2. The UWSS Act has laid down provisions wherein it registers and issues a smart identity card
with a unique number to the unorganised sector worker.
3. The Record Keeping function will be performed by the District Administration.
4. The Workers Facilitation Centres will disseminate the available data on the social security
schemes, facilitate the filing-processing and forwarding of the registration application with
the assistance of the district administrator.
5. The act in its Schedule I has laid down a list of the Social Security Schemes to ensure that
the workers of the unorganised sector meet their basic needs and that they have a decent
standard of living.

❖ Definitions: Section 2

(a) "employer" means a person or an association of persons, who has engaged or employed an
unorganised worker either directly or otherwise for remuneration;

(b) "home-based worker" means a person engaged in the production of goods or services for an
employer in his or her home or other premises of his or her choice other than the workplace of the
employer, for remuneration, irrespective of whether or not the employer provides the equipment,
materials or other inputs;

(k) "self-employed worker" means any person who is not employed by an employer, but engages
himself or herself in any occupation in the unorganised sector subject to a monthly earning of an
amount as may be notified by the Central Government or the State Government from time to time or
holds cultivable land subject to such ceiling as may be notified by the State Government;

(l) "unorganised sector" means an enterprise owned by individuals or self-employed workers and
engaged in the production or sale of goods or providing service of any kind whatsoever, and where the
enterprise employs workers, the number of such workers is less than ten;

(m) "unorganised worker" means a home-based worker, self-employed worker or a wage worker in the
unorganised sector and includes a worker in the organised sector who is not covered by any of the
Acts mentioned in Schedule II to this Act;

(n) "wage worker" means a person employed for remuneration in the unorganised sector, directly by
an employer or through any contractor, irrespective of place of work, whether exclusively for one
employer or for one or more employers, whether in cash or in kind, whether as a home-based worker,
or as a temporary or casual worker, or as a migrant worker, or workers employed by households
including domestic workers, with a monthly wage of an amount as may be notified by the Central
Government and State Government, as the case may be.
 Labour Law - 2

Q 1. Explain the salient provision of inter-state Migration of Workers Act 1979.

The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act,
1979 is a crucial piece of legislation in India aimed at regulating the employment and working
conditions of inter-state migrant workers. It seeks to protect the rights and interests of these
vulnerable workers who move from one state to another in search of employment opportunities.
This Act was enacted to curb exploitation, ensure proper working conditions, and safeguard the
welfare of inter-state migrant laborers.

Key provisions of the Inter-State Migrant Workmen Act, 1979:

1. Applicability (Section 1): The Act applies to every establishment in which five or more inter-
state migrant workmen are employed or were employed on any day of the preceding 12 months.
2. Registration of Establishments (Section 3): Employers who hire inter-state migrant workmen
are required to register their establishments with the appropriate authority. This registration
ensures that employers are accountable for the conditions of employment and welfare measures
provided to the workers.
3. Appointment of Licensing Officers (Section 4): The Act provides for the appointment of
Licensing Officers who are responsible for issuing licenses to contractors and ensuring
compliance with the Act's provisions.
4. Licensing of Contractors (Section 5): Contractors who engage inter-state migrant workers must
obtain a license from the Licensing Officer. To obtain this license, the contractor must meet
certain conditions, including payment of wages, provision of adequate accommodation, and
compliance with safety standards.
5. Contractor's Obligations (Section 12): Contractors are obligated to provide workers with
amenities such as suitable accommodation, drinking water, medical facilities, and reasonable
working hours. They must also ensure the prompt payment of wages.
6. Payment of Wages (Section 14): Wages must be paid directly to the workers, and any
unauthorized deductions are prohibited. The Act prescribes the frequency of wage payments and
the manner in which they should be made.
7. Working Hours and Overtime (Section 13): The Act limits the working hours of inter-state
migrant workers and mandates overtime wages for work done beyond the regular hours.
8. Health and Safety Provisions (Section 16): Employers are required to provide adequate safety
measures and medical facilities to protect the health and well-being of migrant workers.
9. Appointment of Welfare Officers (Section 18): In establishments employing a significant
number of migrant workers, the Act mandates the appointment of Welfare Officers to oversee
their welfare activities.
10. Dispute Resolution (Section 20): A mechanism for resolving disputes between workers and
employers is established under the Act, which includes the appointment of competent authorities
to adjudicate these disputes.
11. Penalties (Section 25): The Act prescribes penalties for violations, including imprisonment and
fines for employers and contractors who fail to comply with its provisions.

Case Laws:

1. M.C. Mehta vs. State of Tamil Nadu (1996): In this landmark case, the Supreme Court
emphasized the importance of protecting the rights and dignity of migrant workers and called for
strict enforcement of the Inter-State Migrant Workmen Act.

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 Labour Law - 2

2. People's Union for Democratic Rights vs. Union of India (1982): This case highlighted the
need for the proper implementation of the Act and its provisions to safeguard the rights of inter-
state migrant workers.

In conclusion, the Inter-State Migrant Workmen Act, 1979 is a vital piece of legislation that seeks
to regulate the employment and working conditions of inter-state migrant workers in India. It
aims to protect their rights, ensure fair wages, and provide for their welfare. Proper
implementation and enforcement of this Act are essential to prevent exploitation and abuse of
this vulnerable section of the labor force, aligning with the principles of social justice and equity
enshrined in the Indian Constitution.

Page 2 of 24
 Labour Law - 2

Q. Explain the salient features of Sexual Harassment of Women at Workplace (Prevention,

Protection and Redressal Act 2013).

The Sexual Harassment of Women at Workplace (Prevention, Protection, and Redressal) Act,
2013, commonly known as the Sexual Harassment Act, is a significant piece of legislation aimed
at preventing and addressing sexual harassment of women in the workplace. It provides a legal
framework to ensure the safety and dignity of women employees. Below are the salient features
of this important Act, along with relevant sections and case references:

1. Applicability (Section 2): The Act applies to all workplaces, whether in the public or private
sector, and covers women employees, interns, and even volunteers. It is comprehensive in its
scope and covers a wide range of workplaces.
2. Definition of Sexual Harassment (Section 2): The Act defines sexual harassment broadly,
encompassing unwelcome conduct or behavior of a sexual nature, including physical advances,
requests for sexual favors, making sexually colored remarks, or any other verbal or non-verbal
conduct of a sexual nature.
3. Duty of Employers (Section 4): Employers are mandated to provide a safe working environment
for women and prevent sexual harassment. They must establish an Internal Complaints
Committee (ICC) for organizations with ten or more employees or a Local Complaints Committee
(LCC) for smaller establishments. The ICC or LCC is responsible for addressing complaints.
4. Composition of ICC (Section 4): The ICC should comprise at least one presiding officer, who
should be a woman employed at a senior level, and a minimum of two other members, one of
whom must be a woman from an NGO or an organization committed to women's rights.
5. Time-Bound Redressal (Section 7): The Act prescribes a time frame for resolving complaints.
The ICC or LCC must complete the inquiry within 90 days, ensuring swift and efficient resolution.
6. Confidentiality (Section 16): The Act emphasizes the importance of maintaining the
confidentiality of the complainant and the accused during the inquiry process to protect their
reputation and privacy.
7. Protection against Retaliation (Section 13): The Act prohibits any form of retaliation or
adverse action against the complainant for filing a complaint. This provision ensures that women
can come forward without fear of reprisals.
8. Penalties (Section 26): Non-compliance with the Act's provisions can result in penalties,
including fines and cancellation of licenses or registrations of the establishment. Employers who
fail to constitute ICC or LCC may face penalties as well.
9. Public Awareness (Section 19): The Act emphasizes the importance of creating awareness
about the law and its provisions through workshops, seminars, and campaigns.
10. Vishaka Guidelines: Before the enactment of the Sexual Harassment Act, the Supreme Court of
India laid down the Vishaka Guidelines in the Vishaka v. State of Rajasthan case (1997) to address
sexual harassment at workplaces. These guidelines served as the foundation for the legislation.
11. Punjab & Haryana High Court in Vishakha Yadav vs. State of Haryana (2013): This case
affirmed the need for strict adherence to the Vishaka Guidelines and the importance of a safe
working environment for women.
12. Punjab National Bank vs. Mahesh Dattatray Thakkar (2015): In this case, the Supreme Court
clarified that the Sexual Harassment Act is applicable retrospectively, meaning it covers cases that
occurred before the Act's enactment.

Page 3 of 24
 Labour Law - 2

In conclusion, the Sexual Harassment of Women at Workplace (Prevention, Protection, and

Redressal) Act, 2013, is a comprehensive legal framework designed to combat sexual harassment
at workplaces and ensure the safety and dignity of women employees. It places a legal obligation
on employers to take proactive measures to prevent and address sexual harassment and provides
a structured mechanism for women to file complaints and seek redressal. The Act represents a
significant step toward creating safer and more inclusive workplaces in India.

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Q. Explain the various Central government schemes provided under the unorganised
workers and Social Security Act 2008.

The Unorganised Workers' Social Security Act, 2008 is a landmark legislation in India aimed at
providing social security to millions of unorganized workers who lack the benefits and
protections typically enjoyed by formal sector employees. The Act recognizes the need to provide
various schemes and measures to improve the quality of life and social security of these
vulnerable workers. Here, we will discuss some of the key Central government schemes provided
under the Unorganised Workers' Social Security Act, 2008, along with relevant references to
sections and case laws where applicable:
1. Rashtriya Swasthya Bima Yojana (RSBY): RSBY is a health insurance scheme designed to
provide cashless health insurance coverage to unorganized workers and their families. It aims to
cover hospitalization expenses and ensure access to quality healthcare. Section 2(d) of the Act
defines the term "health and maternity benefits," which includes benefits under RSBY.
2. Aam Aadmi Bima Yojana (AABY): AABY is a life insurance scheme that provides financial
assistance to the families of unorganized workers in case of the insured person's death or
disability due to an accident. This scheme offers security and support to the families of workers.
Section 2(c) of the Act refers to "life and disability cover" under social security, which includes
AABY.
3. Indira Gandhi National Old Age Pension Scheme (IGNOAPS): This pension scheme provides
financial assistance to eligible elderly unorganized workers. Section 2(b) of the Act mentions "old
age protection" as one of the components of social security.
4. National Family Benefit Scheme (NFBS): NFBS provides financial support to families below the
poverty line in case of the primary breadwinner's death. This scheme offers economic assistance
and helps families cope with the loss of income due to a worker's demise. Section 2(a) of the Act
covers "survivors' benefit" as a part of social security.
5. Skill Development and Employment Generation Scheme: The Act recognizes the importance
of skill development and employment generation for unorganized workers. Section 2(f) of the Act
defines "economic security" to include measures for skill up-gradation and employment
generation.
6. Unorganised Workers' Social Security Fund: The Act establishes a National Social Security
Board and State Social Security Boards to oversee the implementation of social security schemes.
These boards play a crucial role in formulating policies and managing the Unorganised Workers'
Social Security Fund, which finances various schemes. Section 3 of the Act empowers the Central
Government to frame policies and guidelines.
7. Case Reference - People's Union for Civil Liberties (PUCL) vs. Union of India (2004):
Although not specific to the Unorganised Workers' Social Security Act, this case highlighted the
importance of social security for unorganized workers. The Supreme Court emphasized the need
for a comprehensive social security scheme to protect the rights and welfare of unorganized
workers.

These Central government schemes are essential components of the Unorganised Workers' Social
Security Act, 2008, as they aim to provide financial assistance, healthcare, and social security to
unorganized workers and their families. The Act recognizes the vulnerability of this workforce and
seeks to address their socio-economic challenges through various schemes and measures, thus
promoting their overall well-being and inclusivity in the Indian economy.

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Q. Explain appointment, powers and procedure of authorities (inspectors) under Payment

of Wages Act.

The Payment of Wages Act, 1936, is a crucial labor law in India that regulates the payment of
wages to employees. The Act appoints authorities, often referred to as inspectors, to ensure
compliance with its provisions. These inspectors have specific powers and follow certain
procedures to enforce the Act effectively. Here, we will discuss the appointment, powers, and
procedures of authorities (inspectors) under the Payment of Wages Act, 1936, with references to
relevant sections and case laws where applicable.

Appointment of Authorities (Inspectors):

1. Appointment of Inspectors (Section 15): The Payment of Wages Act empowers the
appropriate government, either the Central Government or the State Government, to appoint
inspectors to carry out the purposes of the Act. These inspectors are typically officers of the labor
department.
2. Qualifications of Inspectors (Section 15A): The Act specifies that inspectors should possess the
qualifications as prescribed by the appropriate government. This ensures that the appointed
inspectors have the necessary knowledge and expertise to enforce the Act effectively.

Powers of Authorities (Inspectors):

1. Inspection of Records (Section 16): One of the primary powers of inspectors is to inspect and
examine the records, registers, and notices maintained by employers under the Act. These
records include details of wages, deductions, and other relevant information.
2. Power to Require Information (Section 17): Inspectors have the authority to require any
person to furnish information and provide access to documents, accounts, and other records as
necessary for the inspection. This power ensures transparency and accountability in wage
payment.
3. Production of Documents (Section 18): Employers are obligated to produce all relevant
documents and records upon request by the inspector. Failure to do so can lead to penalties
under the Act.
4. Penalties for Non-Compliance (Section 20): Inspectors can impose penalties on employers
who violate the Act's provisions, such as making unauthorized deductions or delaying wage
payments. The penalty amount varies based on the severity of the offense.
5. Recovery of Deductions (Section 21): Inspectors also have the power to order the recovery of
deducted wages that were not made in accordance with the Act. This ensures that employees
receive their rightful wages.

Procedure of Authorities (Inspectors):

1. Appearance before Authorities (Section 22): In cases where disputes arise between employers
and employees regarding wages, inspectors may act as conciliators and encourage parties to
reach a settlement. If a settlement is not reached, the matter may be referred to the authority
under Section 15 of the Act.
2. Maintenance of Records by Inspectors (Section 26): Inspectors are required to maintain
records of their inspections, actions taken, and penalties imposed. This record-keeping helps in
monitoring and evaluating compliance with the Act.

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3. Appeals (Section 25): Employers or employees who are aggrieved by the orders or decisions of
inspectors can file appeals to the authority appointed by the appropriate government. The
authority has the power to modify or set aside the orders of the inspector.

Case Reference - State of Punjab vs. Ram Lubhaya Bagga (2000): In this case, the Supreme
Court emphasized the importance of strict compliance with the Payment of Wages Act and the
role of inspectors in ensuring that wages are paid accurately and in a timely manner. The Court
upheld the power of inspectors to demand information and inspect records as essential for
enforcing the Act.

In conclusion, the Payment of Wages Act, 1936, appoints authorities known as inspectors to
enforce its provisions and ensure that employees receive their wages without unauthorized
deductions. Inspectors play a crucial role in verifying compliance with the Act by inspecting
records, conducting inquiries, and imposing penalties when necessary. Their appointment,
qualifications, and powers are vital to upholding the rights of workers and promoting fair wage
practices in India. Inspectors are instrumental in achieving the Act's objectives of ensuring that
wages are paid accurately and on time while providing a mechanism for redressal of grievances
related to wage payment.

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Q. Discuss the salient features of Payment of Bonus Act 1965.

The Payment of Bonus Act, 1965, is a significant labor law in India that governs the payment of
bonuses to employees. The primary objective of this Act is to provide financial incentives to
employees, encourage greater productivity, and improve their standard of living. Here, we will
discuss the salient features of the Payment of Bonus Act, 1965, with references to relevant
sections and case laws where applicable.
1. Applicability (Section 1): The Act applies to every factory and establishment employing 20 or
more employees. It also covers employees earning a specified minimum wage. This wide
applicability ensures that a substantial portion of the workforce benefits from the Act.
2. Definition of Employee (Section 2(13)): The Act defines an "employee" as any person (other
than an apprentice) employed on a salary or wage not exceeding a specified amount per month.
This definition ensures that various categories of employees are included.
3. Eligibility Criteria for Bonus (Section 8): To be eligible for a bonus, an employee must have
worked for at least 30 working days in an accounting year. This criterion ensures that employees
who have made a significant contribution to the organization are entitled to a share in the bonus.
4. Calculation of Bonus (Section 10): The Act provides a clear method for calculating the bonus,
which is based on the available surplus and the allocable surplus. The maximum bonus payable is
20% of the salary or wage earned by the employee during the accounting year.
5. Payment of Minimum Bonus (Section 10): Even if the allocable surplus is insufficient, the Act
mandates that employers pay a minimum bonus of 8.33% of the salary or wage earned by the
employee during the accounting year.
6. Adjustment of Interim Bonus (Section 17): Employers can pay interim bonuses during the year,
and such interim bonuses are adjusted against the final bonus payable at the end of the
accounting year. This provision helps in distributing bonus amounts more evenly.
7. Time Limit for Payment (Section 19): Employers are required to pay the bonus within eight
months from the close of the accounting year. This ensures that employees receive their bonuses
in a timely manner.
8. Applicability to Public Sector Undertakings (Section 32): The Act applies to public sector
undertakings as well, but the Central Government has the authority to exempt certain
undertakings from its provisions.
9. Determination of Disputes (Section 22): In case of disputes related to the bonus, the Act
provides for the establishment of Bonus Payment Authorities to settle such disputes. The decision
of these authorities is binding on both parties, ensuring a fair resolution process.
10. Amendments to the Act: Over the years, the Payment of Bonus Act has undergone
amendments to adapt to changing economic conditions and to extend its coverage to more
employees.
11. Case Reference - Bridge & Roof Co. (India) Ltd. vs. Union of India (1963): In this significant
case, the Supreme Court clarified that the bonus should be calculated on the basis of gross
profits before making any deductions under the Income Tax Act. This ruling helped in ensuring
that employees receive their fair share of bonuses.

In conclusion, the Payment of Bonus Act, 1965, plays a crucial role in promoting industrial
harmony and protecting the financial interests of employees in India. It establishes a clear
framework for the calculation and distribution of bonuses, sets eligibility criteria, and mandates
timely payments. The Act aligns with the principles of social justice by ensuring that employees
receive a fair share of the profits generated by organizations, thereby improving their standard of
living and incentivizing productivity.

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Q. Explain the development of child labour abolition and regulation of legislations in India.

The development of child labor abolition and regulation legislation in India has been a critical
aspect of labor law reform, aimed at protecting the rights and welfare of children. Over the years,
India has implemented various laws and international conventions to combat child labor,
emphasizing the importance of education, health, and social welfare for children. Here, we will
discuss the historical evolution of child labor laws and regulations in India, along with relevant
references to sections and case laws where applicable.

Pre-Independence Era:

1. Factories Act, 1881: The Factories Act, 1881, marked the first significant legislative effort to
regulate child labor in India. It imposed restrictions on the employment of children under specific
age limits and established working hour limitations.
2. Mines Act, 1923: The Mines Act introduced age restrictions and working hour limitations for
children employed in mines.

Post-Independence Era:

1. Child Labor (Prohibition and Regulation) Act, 1986: This Act, often referred to as the CLPRA,
aimed at the complete abolition of child labor in specified hazardous occupations and processes.
It prohibited the employment of children under the age of 14 in such occupations while allowing
the employment of adolescents (aged 14-18) under certain conditions.
2. Right to Education Act, 2009: The Right to Education Act made education a fundamental right
for children aged 6 to 14, further emphasizing the importance of eliminating child labor and
ensuring access to quality education.

Ratification of International Conventions:

1. ILO Convention No. 138: India ratified the International Labour Organization (ILO) Convention
No. 138 in 1997, which sets the minimum age for admission to employment or work at 15 years
(14 years under specific conditions) and aims to eliminate child labor.
2. ILO Convention No. 182: India ratified ILO Convention No. 182 in 2000, which focuses on the
worst forms of child labor and aims to eliminate such practices, including child trafficking, forced
labor, and hazardous work.

Case References:

1. M.C. Mehta vs. State of Tamil Nadu (1996): In this landmark case, the Supreme Court took suo
motu cognizance of the child labor issue in the Sivakasi fireworks industry and issued directives
to eliminate child labor from hazardous industries. The case led to significant policy changes and
increased awareness about child labor.
2. People's Union for Democratic Rights vs. Union of India (1982): This case highlighted the
need for the proper implementation of child labor laws and the importance of a comprehensive
approach to eliminate child labor.

Recent Developments:

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1. Amendment to CLPRA, 2016: In 2016, the Child Labor (Prohibition and Regulation) Amendment
Act was enacted to strengthen the legal framework against child labor. It expanded the list of
hazardous occupations and processes from 18 to 83 and increased penalties for violations.
2. National Child Labour Project (NCLP): The Government of India introduced the NCLP scheme
to rehabilitate child laborers and provide them with educational and skill development
opportunities.
3. Rashtriya Bal Swasthya Karyakram (RBSK): This scheme aims to provide healthcare services to
children and detect and treat diseases and deficiencies among them.

In conclusion, the development of child labor abolition and regulation legislation in India reflects
the country's commitment to protecting the rights and welfare of its children. The evolution of
these laws, along with the ratification of international conventions and landmark judicial
decisions, has significantly contributed to the reduction of child labor and the promotion of
education and social welfare for children in India. However, the challenges of completely
eradicating child labor persist, and ongoing efforts are essential to achieve this goal and secure a
brighter future for India's youth.

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Q. Explain the salient features of Karnataka shops and Commercial Establishment Act 1961.

The Karnataka Shops and Commercial Establishments Act, 1961, is a crucial labor law in the state
of Karnataka, governing the working conditions, employment regulations, and welfare measures
for employees in shops and commercial establishments. It aims to ensure the welfare and rights
of employees while promoting a conducive working environment for businesses. Here, we will
discuss the salient features of the Karnataka Shops and Commercial Establishments Act, 1961,
with references to relevant sections and case laws where applicable.

Salient Features of the Karnataka Shops and Commercial Establishments Act, 1961:

1. Applicability (Section 2): The Act applies to all shops and commercial establishments
employing ten or more employees. It covers a wide range of businesses, including shops, hotels,
restaurants, theaters, and other commercial establishments.
2. Registration (Section 6): Every employer is required to register their establishment under this
Act within 30 days of commencing business operations. The registration process ensures that
establishments adhere to the Act's provisions.
3. Working Hours (Section 8): The Act prescribes the maximum and minimum working hours,
including intervals for rest and meal breaks, for employees. It also mandates weekly holidays to
promote employee well-being.
4. Employment of Women (Section 12): The Act regulates the employment of women, ensuring
that they are not required to work during specified hours and receive certain benefits, such as
safe transportation facilities during night shifts.
5. Child Labor (Section 15): The Act prohibits the employment of children below the age of 14
years and mandates the issuance of employment certificates for adolescents aged 14 to 17 years.
It aligns with the Child Labor (Prohibition and Regulation) Act, 1986.
6. Leave and Holidays (Section 17): Employees are entitled to various types of leave, including
casual leave, earned leave, and sick leave. The Act also provides for paid holidays, including
national and festival holidays.
7. Employment of Young Persons (Section 19): Special provisions are made for the employment
of young persons aged 15 to 18 years, including restrictions on night work and overtime.
8. Employment Records and Notices (Section 21): Employers are required to maintain records of
employment and display notices containing essential information for employees.
9. Payment of Wages (Section 25): The Act regulates the timely payment of wages, including the
method of payment, frequency, and deduction restrictions.
10. Conditions of Work (Section 31): The Act emphasizes maintaining safe and hygienic working
conditions, proper ventilation, cleanliness, and fire safety measures in establishments.
11. Rights of Employees (Section 42): The Act safeguards the rights of employees to form trade
unions, participate in peaceful strikes, and seek redressal of grievances through the prescribed
channels.
12. Penalties and Offenses (Section 41): The Act specifies penalties for violations, including fines
and imprisonment for employers who fail to comply with its provisions.

Case Reference:

1. Karnataka Beedi Vyapari Keth Mazdoor Sangh vs. State of Karnataka (1988): In this case, the
Karnataka High Court held that shops and commercial establishments must comply with the

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provisions of the Karnataka Shops and Commercial Establishments Act, 1961, regarding working
hours, overtime, and rest intervals.

In conclusion, the Karnataka Shops and Commercial Establishments Act, 1961, is a comprehensive
legislation that sets out the rights and responsibilities of employers and employees in shops and
commercial establishments in Karnataka. It ensures the welfare of employees, regulates their
working conditions, and promotes a fair and conducive work environment. Compliance with this
Act is essential for businesses to operate legally and for employees to enjoy their rights and
benefits. The Act aligns with the broader goals of labor welfare and social justice in the state of
Karnataka.

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Q. Explain the ILO and Constitution of India and provisions for promotion of labour
welfare.

The International Labour Organization (ILO) and the Constitution of India both play significant
roles in the promotion of labor welfare and the protection of workers' rights. While the ILO is a
global organization dedicated to setting international labor standards and fostering decent work,
the Constitution of India provides the legal framework for labor rights and welfare within the
country. Here, we will discuss the relationship between the ILO and the Indian Constitution, as
well as the provisions for labor welfare in the Indian Constitution, with references to relevant
sections and case laws where applicable.

ILO and its Influence on Indian Labor Laws:

1. Ratification of ILO Conventions: India, as a member of the ILO, has ratified numerous ILO
conventions that set international labor standards. These conventions cover a wide range of labor
issues, including child labor, forced labor, occupational safety, and minimum wage.
2. Impact on Indian Legislation: The principles and guidelines laid down by the ILO often
influence the framing of labor laws in India. For example, the Factories Act, 1948, and the
Minimum Wages Act, 1948, were enacted with the ILO's recommendations in mind.
3. ILO Declarations: India has also endorsed key ILO declarations, such as the ILO Declaration on
Fundamental Principles and Rights at Work, which reaffirms the commitment to fundamental
labor rights, including freedom of association and collective bargaining.

Provisions for Promotion of Labor Welfare in the Indian Constitution:

1. Directive Principles of State Policy: Part IV of the Indian Constitution contains Directive
Principles of State Policy, which provide guidance to the government in policy formulation. Article
39(e) and (f) emphasize that the state shall ensure that the health and strength of workers are not
abused, and that children are not forced to enter occupations unsuited to their age and strength.
2. Right to Equal Pay for Equal Work (Article 39(d)): Article 39(d) ensures that there is no
discrimination in pay for the same work done by employees, irrespective of gender.
3. Right to Just and Humane Conditions of Work (Article 42): Article 42 directs the state to
make provisions for securing just and humane conditions of work and maternity relief.
4. Right to Education (Article 45): Article 45 mandates that the state shall provide early childhood
care and education for all children until they complete the age of six years.
5. Prohibition of Forced Labor (Article 23): Article 23 explicitly prohibits forced labor of any kind.
It also prohibits the employment of children below the age of 14 years in hazardous occupations.
6. Right to Organize and Form Trade Unions (Article 19(1)(c)): Article 19(1)(c) grants Indian
citizens the fundamental right to form associations or unions. This provision allows workers to
organize and collectively bargain for their rights and welfare.
7. Protection of Women Workers (Article 15(3)): Article 15(3) empowers the state to make
special provisions for women and children, including measures to promote their welfare.
8. Right to Life with Dignity (Article 21): Article 21 has been interpreted by the Indian judiciary to
encompass the right to livelihood, and thus, the state has a responsibility to ensure decent
working conditions and fair wages for workers.

Case Reference - Bandhua Mukti Morcha vs. Union of India (1984): In this landmark case, the
Supreme Court of India recognized the importance of the Directive Principles and ordered the

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release of bonded laborers. The Court reaffirmed the principles of social justice and labor welfare
enshrined in the Constitution.

In conclusion, the Indian Constitution and the ILO are instrumental in shaping labor welfare and
workers' rights in India. While the ILO sets international labor standards and provides guidelines,
the Indian Constitution lays down the legal framework and principles for labor welfare within the
country. Together, they work to ensure that labor rights are protected, workers are treated with
dignity, and labor welfare is promoted in line with the principles of social justice and equitable
distribution of wealth and resources. These provisions and commitments demonstrate India's
dedication to the welfare of its labor force and adherence to international labor standards.

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Q. Explain the liability of employer to pay compensation under Employees Compensation

Act 1923.

The Employees' Compensation Act, 1923, formerly known as the Workmen's Compensation Act,
1923, is a vital labor law in India that provides for the compensation of employees in case of
injuries, accidents, or death arising out of and in the course of employment. This Act places a
significant liability on employers to ensure the financial security and welfare of their employees.
Here, we will explain the liability of an employer to pay compensation under the Employees'
Compensation Act, 1923, with references to relevant sections and case laws where applicable.

Liability of Employer under the Employees' Compensation Act, 1923:

1. Employer's Liability (Section 3): The primary liability of an employer under this Act is to pay
compensation to employees for injuries or death arising out of and in the course of employment.
This liability is absolute, and employers are responsible for providing compensation regardless of
whether they were at fault.
2. Compensation for Injury (Section 3): When an employee sustains an injury during the course
of employment, the employer is liable to pay compensation to the injured employee. The
compensation amount is determined based on the nature and extent of the injury.
3. Fatal Accidents (Section 4): In the unfortunate event of the death of an employee due to a
work-related accident, the employer is liable to pay compensation to the dependents of the
deceased. The amount of compensation is calculated based on the deceased employee's wages
and the number of dependents.
4. Immediate Notice (Section 10): Employers are required to report any injury or accident
resulting in death or disablement to the appropriate authority within seven days of the
occurrence. Failure to do so can result in penalties.
5. Contracting Out (Section 4A): The Act prohibits any agreement or contract between the
employer and employee that seeks to limit or waive the employer's liability to pay compensation.
Such contracts are void.
6. Case Reference - Rajasthan State Road Transport Corporation vs. Shri Krishna (2000): In this
case, the Supreme Court emphasized the strict liability of employers under the Employees'
Compensation Act. The Court held that the employer's liability to pay compensation is absolute,
and the burden of proof to establish negligence lies with the employer.

Calculation of Compensation (Schedule IV): The Act provides a schedule for the calculation of
compensation based on the nature of injuries, such as loss of limbs, partial or total disablement,
or death. The compensation amount is determined as a percentage of the employee's monthly
wages and is subject to a maximum limit.

Limits on Compensation (Section 4 and Schedule II): The Act specifies certain maximum limits
on the amount of compensation payable. For instance, in case of death, the maximum
compensation payable is ₹1,20,000, and in case of permanent total disablement, the maximum is
₹1,40,000.

Insurance Requirement (Section 4A): To meet their liability under the Act, employers are
required to take out an insurance policy with an insurer. This policy ensures that the employer
has the financial means to pay compensation in the event of an accident.

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Extension of Liability (Section 4B): In case an employee works for a principal employer through
a contractor, both the principal employer and the contractor may be jointly and severally liable to
pay compensation, depending on the circumstances.

Amendments and Developments: Over the years, amendments have been made to the Act to
enhance compensation and coverage. These changes reflect the evolving nature of workplaces
and the need to protect the interests of workers.

In conclusion, the Employees' Compensation Act, 1923, places a significant liability on employers
to provide financial compensation to employees and their dependents in case of work-related
injuries, accidents, or death. This liability is absolute, and employers are obligated to ensure the
financial security and welfare of their employees as per the Act's provisions. The Act seeks to
strike a balance between the interests of employers and the rights of employees, ultimately
promoting workplace safety and employee welfare in India.

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Q. Discuss the benefits under Employees State Insurance act 1948.

The Employees' State Insurance Act, 1948 (ESI Act), is a significant social security legislation in
India that provides medical, financial, and other benefits to employees and their families. The Act
aims to protect the interests of workers by ensuring access to healthcare and providing financial
support during periods of illness, maternity, disablement, and more. Here, we will discuss the
benefits available under the Employees' State Insurance Act, 1948, with references to relevant
sections and case laws where applicable.

Benefits under the Employees' State Insurance Act, 1948:

1. Medical Benefits (Section 46): One of the primary benefits of the ESI Act is medical care.
Employees and their eligible family members are entitled to medical treatment, including
outpatient, inpatient, and specialist services, at ESIC (Employees' State Insurance Corporation)
dispensaries, hospitals, and clinics. This benefit ensures access to quality healthcare without
financial burden.
2. Sickness Benefit (Section 46): Employees who are unable to work due to illness are eligible for
sickness benefits. This benefit provides financial assistance to cover a portion of their wages
during the period of sickness. The rate of sickness benefit is a percentage of the employee's daily
average wage.
3. Maternity Benefit (Section 46): Female employees are entitled to maternity benefits, including
paid leave during pregnancy and post-delivery recovery. This benefit supports working mothers
and promotes maternal and child health.
4. Disablement Benefit (Section 46): In case of temporary or permanent disablement due to an
employment injury, employees are eligible for disablement benefits. The benefit includes a
monthly pension based on the degree of disablement.
5. Dependent Benefits (Section 46): In the unfortunate event of an employee's death due to an
employment injury, dependents of the deceased are entitled to dependent benefits. This includes
a monthly pension to the spouse and dependent children.
6. Funeral Expenses (Section 46): The ESI Act provides for funeral expenses in case of the
employee's death. This benefit covers the costs associated with the last rites of the deceased
employee.
7. Rehabilitation Allowance (Section 47): In cases of permanent disablement, employees may
receive a rehabilitation allowance to support their reintegration into the workforce. This
allowance is aimed at improving the employability of disabled employees.
8. Extended Sickness Benefit (Section 56): In situations where an employee is suffering from
certain long-term illnesses, the ESI Act provides for extended sickness benefits, which offer a
more extended duration of financial support.
9. Medical Benefits for Retired Employees (Section 2(11A)): Even after retirement, employees
who were registered under the ESI Act can continue to avail medical benefits for themselves and
their spouses.

Case Reference - Employees' State Insurance Corporation vs. Francis de Costa (2014): In this
case, the Supreme Court held that maternity benefits under the ESI Act should be liberally
interpreted to advance the objective of protecting the interests of female employees and
promoting maternal and child health.

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Amendments and Developments: The ESI Act has undergone amendments to expand its
coverage and enhance the benefits provided to employees. These changes reflect the evolving
needs of the workforce and the commitment to social security.

In conclusion, the Employees' State Insurance Act, 1948, offers a comprehensive set of benefits to
employees and their families, covering medical care, financial support during sickness, maternity,
disablement, and more. These benefits are aimed at safeguarding the welfare of workers and
their dependents, ensuring access to healthcare, and providing financial assistance during
challenging times. The ESI Act plays a crucial role in promoting social security and improving the
quality of life for employees in India, aligning with the principles of social justice and equitable
distribution of resources.

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Q. Define the term minimum wages and explain the procedure for fixation and review of
minimum rates of wages laid down under Minimum Wages Act 1948.

The term "minimum wages" refers to the legally mandated minimum remuneration that
employers are obligated to pay their workers for the labor or services rendered. The Minimum
Wages Act, 1948, is a crucial labor law in India that aims to protect the interests of workers by
establishing a framework for the fixation and review of minimum rates of wages. Here, we will
define minimum wages and explain the procedure for the fixation and review of minimum rates
of wages under the Minimum Wages Act, 1948, with references to relevant sections and case laws
where applicable.

Definition of Minimum Wages:

Minimum wages are the lowest wages that employers are legally required to pay their employees
for the work performed. These wages are set by the appropriate government, either the Central
Government or the State Government, depending on the scheduled employment or industry, and
are designed to ensure fair compensation for workers while preventing exploitation.

Procedure for Fixation and Review of Minimum Rates of Wages:

1. Scheduled Employments (Section 2): The Minimum Wages Act categorizes employments into
"scheduled employments," which include various industries, occupations, or sectors of
employment. Both the Central and State Governments have the authority to fix and revise
minimum rates of wages for scheduled employments within their respective jurisdictions.
2. Constitution of Advisory Board (Section 7): The appropriate government may constitute an
Advisory Board, consisting of representatives of employers, employees, and independent experts.
The Advisory Board's primary function is to advise the government on matters related to the
fixation and revision of minimum wages.
3. Central Advisory Board (Section 9): At the national level, a Central Advisory Board may be
constituted by the Central Government to advise on minimum wages and related matters. This
Board includes representatives of employers and employees from various industries.
4. Factors Considered for Fixation (Section 3): When fixing or revising minimum rates of wages,
the appropriate government takes into account various factors, including the skill required for the
job, the cost of living, the prevailing rates of wages, and the extent of regular employment in the
scheduled employment.
5. Notification of Proposed Rates (Section 5): The government notifies the proposed rates of
minimum wages for the scheduled employments, specifying the date from which they will be
effective. This notification is typically published in the official gazette and is made available for
public scrutiny and objections.
6. Objections and Suggestions (Section 5A): After the proposed rates are notified, interested
parties, including employers and employees, have the opportunity to raise objections or offer
suggestions within a specified time frame. The Advisory Board or committee reviews these
objections and suggestions.
7. Final Notification (Section 5(3)): After considering objections and suggestions and conducting
necessary inquiries, the appropriate government issues the final notification specifying the
minimum rates of wages for the scheduled employments. These rates are legally binding on
employers in the specified industries or occupations.

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8. Payment of Minimum Wages (Section 12): Employers are required to pay wages at or above
the minimum rates prescribed by the government. Failure to do so constitutes an offense and is
subject to penalties under the Act.

Case Reference - U.P. Electric Supply Co. Ltd. vs. The Workmen (1971): In this case, the
Supreme Court emphasized the importance of the Minimum Wages Act and held that the fixation
of minimum wages should be based on principles of fairness and social justice to protect the
interests of laborers.

Revision of Minimum Wages: The Minimum Wages Act provides for the periodic revision of
minimum wages, and the appropriate government can conduct reviews and revise the rates as
needed to keep pace with economic and social changes.

In conclusion, the Minimum Wages Act, 1948, defines minimum wages as the legally mandated
minimum remuneration for workers and establishes a detailed procedure for their fixation and
revision. This procedure ensures that minimum wages are set in a fair and equitable manner,
taking into account various factors and the advice of advisory boards. The Act plays a crucial role
in safeguarding the economic well-being of workers and preventing their exploitation, aligning
with the principles of social justice and equitable distribution of wealth.

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Q. Explain the scope and objects of the Maternity Benefit Act 1961

The Maternity Benefit Act, 1961, is a crucial labor law in India that is designed to protect and
promote the welfare of women employees during pregnancy and after childbirth. The Act lays
down provisions related to maternity leave, medical benefits, and other facilities for women
workers. Here, we will explain the scope and objects of the Maternity Benefit Act, 1961, with
references to relevant sections and case laws where applicable.

Scope of the Maternity Benefit Act, 1961:

1. Applicability (Section 2): The Act applies to every establishment, including factories, mines,
shops, or any other type of commercial or industrial entity, where ten or more employees are
employed or were employed on any day of the preceding twelve months.
2. Eligible Employees (Section 2): The Act primarily focuses on women employees who are
pregnant or who have recently given birth. It also covers female employees who have suffered a
miscarriage or stillbirth.
3. Duration of Coverage (Section 3): The Maternity Benefit Act extends its coverage to women
employees from the beginning of their pregnancy up to six weeks after childbirth. It also includes
a provision for additional leave in case of illness arising from pregnancy, miscarriage, or medical
termination.

Objects of the Maternity Benefit Act, 1961:

1. Protection of Women's Health: The primary objective of the Maternity Benefit Act is to
safeguard the physical and mental health of women employees during pregnancy and post-
childbirth. It recognizes the special needs of pregnant women and aims to provide them with
adequate rest and medical care.
2. Facilitating Maternal Care: The Act encourages female employees to avail themselves of
maternity leave to ensure proper maternal care for themselves and their newborns. This facilitates
the healthy development of infants and contributes to the overall well-being of both mothers
and children.
3. Ensuring Job Security: One of the key objectives is to ensure that women employees do not
face job loss or discrimination due to pregnancy. The Act prohibits the dismissal of female
employees during their maternity leave period.
4. Promoting Gender Equality: The Maternity Benefit Act promotes gender equality in the
workplace by recognizing the unique needs of pregnant women and providing them with paid
leave. This supports the participation of women in the workforce.
5. Preventing Exploitation: By providing maternity benefits, including paid leave and medical
benefits, the Act prevents the exploitation of women employees during a vulnerable phase of
their lives. It helps them maintain financial stability while focusing on their health and family
responsibilities.

Case Reference - Hindustan Lever Ltd. vs. Asha Dhawan (2003): In this landmark case, the
Supreme Court held that maternity benefits under the Maternity Benefit Act are a statutory right,
and the denial of such benefits amounts to unfair labor practice. The Court emphasized the
importance of protecting the health and welfare of female employees.

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Recent Amendments: The Maternity Benefit (Amendment) Act, 2017, brought significant
changes to the Act, increasing the duration of paid maternity leave from 12 weeks to 26 weeks
for eligible female employees. It also introduced provisions for maternity leave for adoptive and
commissioning mothers.

In conclusion, the Maternity Benefit Act, 1961, serves the important objectives of safeguarding
the health and welfare of women employees during pregnancy and post-childbirth, ensuring job
security, promoting gender equality, and preventing exploitation. By providing maternity
benefits, including paid leave and medical benefits, the Act acknowledges the unique needs of
pregnant women and supports their physical and emotional well-being during a critical phase of
their lives. It contributes to a more inclusive and equitable workplace and aligns with the broader
principles of social justice and gender equality in India.

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Q. Explain the health and welfare provisions under factories Act 1948

The Factories Act, 1948, is a significant piece of labor legislation in India that focuses on ensuring
the health, safety, and welfare of workers employed in factories. It sets forth various provisions to
create safe working conditions, promote employee well-being, and prevent occupational hazards.
Here, we will explain the health and welfare provisions under the Factories Act, 1948, with
references to relevant sections and case laws where applicable.

Health and Welfare Provisions under the Factories Act, 1948:

1. Cleanliness (Section 11): Factories are required to maintain clean and hygienic working
conditions. Adequate measures, including proper ventilation, sanitation facilities, and waste
disposal, must be provided to ensure cleanliness.
2. Disposal of Wastes and Effluents (Section 12): The Act mandates the safe and efficient
disposal of wastes and effluents generated within the factory premises. This prevents
environmental pollution and health hazards.
3. Ventilation and Temperature (Section 13): Adequate ventilation and temperature control are
crucial for workers' comfort and health. The Act specifies the standards for proper ventilation and
temperature regulation within factory premises.
4. Dust and Fume Control (Section 14): Factories that deal with processes producing dust, fumes,
or other harmful airborne substances are required to implement control measures to protect
workers from respiratory issues and other health hazards.
5. Artificial Humidification (Section 15): In cases where artificial humidification is necessary, the
Act sets standards to prevent health problems related to excessive humidity.
6. Overcrowding (Section 16): Overcrowding in the workplace can lead to discomfort and pose
safety risks. The Act limits the number of workers in a workspace to ensure their well-being.
7. Drinking Water (Section 18): Employers must provide clean and safe drinking water to
employees at convenient locations within the factory premises.
8. Washing Facilities (Section 19): Adequate washing facilities with soap and clean towels must be
made available to workers to maintain personal hygiene.
9. First Aid Appliances (Section 45): Every factory is required to maintain a first-aid box equipped
with essential medical supplies. Trained personnel should be appointed to provide immediate
medical assistance in case of injuries or accidents.
10. Canteens (Section 46): If a factory employs a specified number of workers, it must provide
suitable and hygienic canteen facilities. This ensures that workers have access to nutritious food
during their working hours.
11. Restrooms (Section 47): Factories must have separate restrooms for male and female workers,
with adequate seating and other facilities for rest and relaxation.

Case Reference - Standard Vacuum Oil Company vs. Their Workmen (1961): In this case, the
Supreme Court held that the health and welfare provisions under the Factories Act, 1948, are
essential for protecting the well-being and dignity of workers. The Court emphasized the
importance of complying with these provisions.

12. Creches (Section 48): For factories employing a specified number of women workers, a creche
facility must be provided. This helps working mothers attend to their infants' needs conveniently.

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13. Working Hours for Adults (Section 51): The Act sets limits on the daily and weekly working
hours for adult workers, ensuring that they have sufficient time for rest and personal activities,
contributing to their overall welfare.
14. Weekly Holidays (Section 52): Every worker is entitled to a weekly holiday to rest and recharge,
promoting their physical and mental well-being.
15. Annual Leave with Wages (Section 79): Workers are entitled to annual leave with wages,
enabling them to take paid time off for rest and recreation.
16. Safety Provisions (Various Sections): While primarily focused on health and welfare, the Act
also contains numerous safety provisions to prevent accidents and injuries in factories.

In conclusion, the Factories Act, 1948, incorporates several health and welfare provisions to
ensure the well-being of workers employed in factories. These provisions are essential for
creating safe, hygienic, and comfortable working conditions, promoting worker health, and
preventing occupational hazards. Compliance with these provisions is vital for employers to
uphold the dignity and welfare of their workers and contribute to a safe and productive work
environment.

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Q. No. 1. Define "Labour welfare legislation" and explain the Indian Constitution
provisions relating to labour welfare legislation with the help of decided cases.

Introduction

Labour welfare legislation constitutes a critical aspect of legal frameworks worldwide,

aimed at safeguarding the rights, safety, and welfare of workers. In India, these laws
find their roots in constitutional provisions, particularly under Part IV and Part IVA,
which outline Directive Principles of State Policy and Fundamental Duties,
respectively.

Defining Labour Welfare Legislation

Labour welfare legislation encompasses laws enacted by governments to protect

workers from exploitation, ensuring fair wages, decent working conditions, social
security, and other benefits vital for their well-being and dignity.

Constitutional Provisions for Labour Welfare Legislation

India's Constitution provides a solid foundation for labour welfare legislation.

Notably, Article 39 and Article 42 highlight key principles guiding the state's
responsibilities towards workers' welfare:

 Article 39: Ensures citizens, irrespective of gender, have the right to a livelihood with
decent working conditions and a standard of life conducive to dignity and health.
 Article 42: Mandates provisions for just and humane conditions of work, including
maternity relief.

Relevance of Constitutional Provisions in Legislation

These constitutional mandates significantly influence labour welfare legislation in

India. For instance:

 The Minimum Wages Act, 1948 aligns with Article 39 by guaranteeing fair wages.
 The Factories Act, 1948, and the Maternity Benefit Act, 1961, address concerns
outlined in Article 42 by promoting safe working environments and maternity
benefits.

Judicial Interpretations: Reinforcing Constitutional Mandates

India's judiciary has played a pivotal role in interpreting and upholding these
constitutional provisions, thereby reinforcing the importance of labour welfare
legislation:

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 Peoples Union for Democratic Rights v. Union of India (1982): The Supreme
Court reiterated that the right to live with human dignity, under Article 21, includes
fair working conditions and wages, emphasizing the state's obligation to protect
workers' welfare.
 D.K. Basu v. State of West Bengal (1996): The Supreme Court affirmed that the
right to work with dignity, a fundamental right under Article 21, encompasses safe
and healthy working conditions, underscoring the significance of legislations like the
Factories Act.

Conclusion

Labour welfare legislation in India, rooted in constitutional principles, is

indispensable for ensuring the welfare and dignity of workers. Constitutional
directives in Articles 39 and 42 guide the formulation of laws aimed at promoting fair
wages, decent working conditions, and maternity benefits. Judicial interpretations
further underscore the fundamental right of workers to live with dignity and work in
safe environments, reinforcing the constitutional mandate for labour welfare
legislation.

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Q. No. 1. Explain the ILO and Constitution of India provisions for Promotion of Labour Welfare.

Introduction

The promotion of labour welfare is a fundamental aspect of both international and

national legal frameworks. The International Labour Organization (ILO) sets global
standards for labour rights and welfare, while the Constitution of India provides a
solid foundation for ensuring the welfare of workers within the country's jurisdiction.
This answer will explore the provisions laid out by the ILO and the Indian
Constitution concerning the promotion of labour welfare, highlighting relevant
sections and case laws.

International Labour Organization (ILO)

The ILO, established in 1919, is a specialized agency of the United Nations system,
dedicated to promoting social justice and internationally recognized human and
labour rights. Key provisions for the promotion of labour welfare by the ILO include:

1. Declaration on Fundamental Principles and Rights at Work: Adopted in 1998, this

declaration emphasizes four core principles: freedom of association and the effective
recognition of the right to collective bargaining, the elimination of forced or
compulsory labour, the abolition of child labour, and the elimination of
discrimination in respect of employment and occupation.
2. ILO Conventions and Recommendations: The ILO has adopted numerous
conventions and recommendations addressing various aspects of labour welfare,
including minimum age, occupational safety and health, social security, and working
conditions.

Constitution of India Provisions

The Constitution of India incorporates several provisions aimed at promoting labour

welfare, primarily under Part IV and Part IVA, which deal with Directive Principles of
State Policy and Fundamental Duties, respectively. Key provisions include:

1. Article 38: Directs the state to secure a social order for the promotion of the welfare
of the people, ensuring social, economic, and political justice, and minimizing
inequalities in income, status, facilities, and opportunities.
2. Article 39: Mandates the state to ensure that citizens have the right to adequate
means of livelihood, equitable distribution of resources, and operation of economic
system not resulting in the concentration of wealth and means of production to the
common detriment.

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3. Article 41: Ensures the right to work, education, and public assistance in certain
cases of unemployment, old age, sickness, and disablement, within the limits of the
economic capacity and development of the state.

Relevant Case Law

In the case of Olga Tellis v. Bombay Municipal Corporation (1985), the Supreme
Court emphasized the right to livelihood as a fundamental right under Article 21 of
the Constitution, underscoring the importance of ensuring decent working
conditions and social security for workers.

Conclusion

The promotion of labour welfare is a crucial aspect of both international and national
legal frameworks. The ILO sets global standards through conventions and
recommendations, emphasizing fundamental principles such as freedom of
association, elimination of forced labour, abolition of child labour, and non-
discrimination. Similarly, the Constitution of India contains provisions aimed at
ensuring social justice and promoting the welfare of citizens, including the right to
adequate livelihood and social security. These provisions, supported by relevant case
law, underscore the importance of protecting and promoting the welfare of workers
to achieve a just and equitable society.

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Q. No. 1. "The Fundamental Rights and Directive Principles of State Policy are the backbone of the
Industrial Jurisprudence in India." Elucidate.

Industrial jurisprudence in India finds its backbone in the Fundamental Rights (Part
III) and Directive Principles of State Policy (Part IV) of the Constitution. These
provisions not only lay down the framework for protecting the rights of individuals
but also guide the state's policies towards achieving social justice, including in the
realm of industrial relations. This elucidation will delve into how these constitutional
provisions form the cornerstone of industrial jurisprudence, citing relevant sections
and case laws.

Fundamental Rights: Protecting Individual Rights

Fundamental Rights enshrined in Part III of the Constitution are justiciable rights
granted to individuals to ensure their dignity, equality, and freedom. Several rights
under Part III have a direct bearing on industrial relations:

1. Right to Equality (Articles 14-18): Ensures equality before the law and equal
protection of the laws, prohibiting discrimination in employment or recruitment on
grounds of religion, race, caste, sex, or place of birth. In the case of State of Bombay
v. Bombay Education Society (1954), the Supreme Court emphasized the right to
equality in matters of employment.
2. Right to Freedom (Articles 19-22): Guarantees various freedoms, including
freedom of speech and expression, assembly, association, and movement, which are
essential for workers to organize and participate in industrial activities without fear of
repression.
3. Right against Exploitation (Articles 23-24): Prohibits trafficking, forced labor, and
employment of children in hazardous occupations. In Bandhua Mukti Morcha v.
Union of India (1984), the Supreme Court emphasized the right against
exploitation, particularly concerning bonded labor.
4. Right to Constitutional Remedies (Article 32): Provides the right to move the
Supreme Court for the enforcement of fundamental rights, ensuring access to justice
for aggrieved workers in cases of rights violations.

Directive Principles of State Policy: Guiding Principles for Legislation

Directive Principles of State Policy, enumerated under Part IV of the Constitution, are
non-justiciable guidelines directing the state in policy-making. While not enforceable
by courts, these principles serve as moral imperatives guiding legislative and
executive actions:

1. Social Justice and Economic Welfare (Articles 38-39): Direct the state to promote
social and economic justice, ensuring fair distribution of wealth and resources, and
preventing concentration of wealth to the detriment of the common good.

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2. Right to Work, Education, and Public Assistance (Article 41): Ensures the right to
work, education, and public assistance in cases of unemployment, old age, sickness,
and disablement, within the state's economic capacity.
3. Living Wage and Just and Humane Conditions of Work (Articles 43-43A):
Mandate the state to secure a living wage, decent working conditions, and social
security for workers. In Unichem Laboratories Ltd. v. Workmen (1969), the
Supreme Court emphasized the importance of providing just and humane conditions
of work.

Conclusion

Fundamental Rights and Directive Principles of State Policy serve as the foundation
of industrial jurisprudence in India, ensuring the protection of individual rights and
guiding state policies towards social justice and welfare. These constitutional
provisions, supported by judicial interpretations, form the bedrock of laws and
regulations governing industrial relations, aiming to create a just and equitable
society. Thus, the integration of these principles into industrial jurisprudence ensures
a harmonious balance between the rights of workers and the interests of employers
and the state.

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Q. No. 1. What is 'Bonded Labour System? Explain the provisions to prohibit Bonded Labour
System in India.

Bonded Labour System: Definition and Context

The bonded labour system is a form of modern-day slavery wherein individuals are
compelled to work in servitude to repay a debt. Typically, these individuals, often
from marginalized communities, are subjected to exploitative working conditions,
low wages, and physical abuse, with little or no means to escape their situation.

Provisions to Prohibit Bonded Labour System in India

India has enacted various legislative measures to prohibit and eradicate the bonded
labour system, recognizing it as a gross violation of human rights. The key provisions
aimed at combating bonded labour in India include:

1. Bonded Labour System (Abolition) Act, 1976:

The Bonded Labour System (Abolition) Act, 1976, is the primary legislation
addressing bonded labour in India. It defines bonded labour as a system where a
person provides labour or service to another person in exchange for a loan or an
advance. Key provisions of this Act include:

 Prohibition of Bonded Labour: Section 2 of the Act prohibits the employment of

bonded labourers.
 Release and Rehabilitation: Section 3 mandates the identification, release, and
rehabilitation of bonded labourers by the District Magistrate.
 Penalties: Sections 16 and 17 impose penalties, including imprisonment and fines,
for contravening the provisions of the Act.

2. Constitution of India:

The Constitution of India also contains provisions aimed at prohibiting bonded

labour:

 Article 23: Prohibits traffic in human beings and forced labour. This article ensures
the fundamental right against exploitation and forms the basis for legislation like the
Bonded Labour System (Abolition) Act.

3. Supreme Court Judgments:

The Indian judiciary has played a significant role in interpreting and enforcing laws
against bonded labour. Several landmark judgments have reiterated the state's
responsibility to eradicate bonded labour:

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 People's Union for Democratic Rights v. Union of India (1982): The Supreme
Court highlighted the fundamental right to live with dignity under Article 21 of the
Constitution, emphasizing the need to abolish bonded labour.
 Bandhua Mukti Morcha v. Union of India (1984): The Supreme Court reaffirmed
the prohibition of bonded labour and directed the government to take effective
measures for the rehabilitation of bonded labourers.

4. Rehabilitation Schemes:

Various government schemes and programs are aimed at rehabilitating bonded

labourers and providing them with opportunities for livelihood and empowerment.
These schemes include financial assistance, skill development programs, and access
to education and healthcare.

Conclusion

The bonded labour system is a grave violation of human rights and a form of modern
slavery that persists in various parts of India. To combat this injustice, the country has
enacted legislative measures such as the Bonded Labour System (Abolition) Act,
1976, and incorporated relevant provisions in the Constitution. Additionally, judicial
pronouncements and rehabilitation schemes play crucial roles in the ongoing effort
to eradicate bonded labour and ensure the dignity and welfare of all individuals.

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Q. No. 2. Explain the salient features of the Bonded Labour System (Abolition) Act,
1976 with the help of decided cases.

Salient Features of the Bonded Labour System (Abolition) Act, 1976: A

Comprehensive Overview

The Bonded Labour System (Abolition) Act, 1976, stands as a pivotal legislation in
India's fight against bonded labour, aiming to eradicate this exploitative system and
ensure the welfare and dignity of vulnerable individuals. This elucidation will delve
into the key features of the Act, supported by relevant decided cases that highlight
its significance and implementation.

1. Prohibition of Bonded Labour (Section 2):

The Act unequivocally prohibits the employment of bonded labourers. It defines

bonded labour as a system where a person provides labour or services to another in
exchange for a loan or advance. This provision criminalizes the practice of bondage
and underscores the state's commitment to ending exploitation.

Relevant Case: People's Union for Democratic Rights v. Union of India (1982)

In this landmark case, the Supreme Court emphasized the fundamental right to live
with dignity under Article 21 of the Constitution. The Court held that bonded labour
violates this right, reinforcing the importance of legislation such as the Bonded
Labour System (Abolition) Act in protecting the dignity of individuals.

2. Identification, Release, and Rehabilitation (Section 3):

The Act mandates the identification, release, and rehabilitation of bonded labourers
by the District Magistrate or any other authorized officer. This provision aims to
emancipate individuals from bondage and provide them with necessary support for
their reintegration into society.

Relevant Case: Bandhua Mukti Morcha v. Union of India (1984)

In this significant case, the Supreme Court reaffirmed the prohibition of bonded
labour and directed the government to take effective measures for the rehabilitation
of bonded labourers. The Court's intervention underscored the importance of
implementing Section 3 of the Act to ensure the holistic liberation and rehabilitation
of affected individuals.

3. Penalties for Offences (Sections 16 and 17):

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The Act imposes stringent penalties, including imprisonment and fines, for
contravening its provisions. Individuals or entities found guilty of employing bonded
labourers face legal consequences, serving as a deterrent against perpetuating this
exploitative system.

Relevant Case: Bandhua Mukti Morcha v. Union of India (1984)

The Supreme Court's judgment in this case not only emphasized the need for
rehabilitation but also underscored the importance of imposing penalties on
offenders. The Court's directives reinforced the significance of Sections 16 and 17 of
the Act in deterring the exploitation of vulnerable individuals.

4. District Vigilance Committees (Section 13):

The Act mandates the establishment of District Vigilance Committees to oversee the
implementation of its provisions. These committees play a crucial role in monitoring
and addressing instances of bonded labour, ensuring effective enforcement of the
Act at the grassroots level.

Relevant Case: Bandhua Mukti Morcha v. Union of India (1984)

The Supreme Court, in this case, stressed the importance of District Vigilance
Committees in combating bonded labour effectively. The Court's directives
underscored the pivotal role of these committees in ensuring the Act's
implementation and safeguarding the rights of bonded labourers.

Conclusion

The Bonded Labour System (Abolition) Act, 1976, embodies the state's commitment
to eradicating bonded labour and protecting the dignity of individuals. Through its
salient features, including the prohibition of bonded labour, identification and
rehabilitation of bonded labourers, imposition of penalties, and establishment of
District Vigilance Committees, the Act aims to dismantle this exploitative system and
foster a society founded on principles of justice and equality. The aforementioned
cases illustrate the Act's significance and implementation, emphasizing the judiciary's
role in upholding its provisions and safeguarding the rights of vulnerable individuals.

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Q. No. 3. Define 'unorganised worker' and explain the various Government Schemes
provided under the Unorganised Workers Social Security Act, 2008 to overcome the
problems faced by unorganised workers.

Unorganised workers form a significant portion of the labor force in India, yet they
often lack job security, social security benefits, and formal employment contracts.
These workers typically operate in small-scale or informal sectors, such as agriculture,
construction, domestic work, and street vending. The Unorganised Workers Social
Security Act, 2008, aims to address the challenges faced by these workers and
provide them with essential social security benefits.

Defining Unorganised Workers

Unorganised workers refer to those who are not covered by any formal employment
arrangements, such as labor contracts or social security schemes. They often work in
informal sectors, lack job security, and face precarious working conditions.

Various Government Schemes under the Unorganised Workers Social Security

Act, 2008

The Unorganised Workers Social Security Act, 2008, recognizes the vulnerability of
unorganised workers and seeks to provide them with social security benefits. Several
government schemes have been initiated under this Act to address the specific needs
of unorganised workers:

1. National Social Security Scheme (NSSS):

 Purpose: NSSS aims to provide social security coverage to unorganised workers by

offering various benefits, including life and disability insurance, health coverage, and
old age pension.
 Implementation: Implemented by the Ministry of Labour and Employment,
Government of India, in collaboration with state governments and other
stakeholders.
 Coverage: Includes unorganised workers across various sectors, such as agriculture,
construction, handloom, and domestic work.
 Beneficiaries: Eligible workers are provided with identity cards and enrolled in the
scheme to avail of the benefits.

2. Rashtriya Swasthya Bima Yojana (RSBY):

 Purpose: RSBY is a health insurance scheme aimed at providing cashless medical

treatment to unorganised workers and their families.

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 Coverage: Offers coverage for hospitalization expenses up to a certain limit,

including pre-existing diseases, for beneficiaries enrolled under the scheme.
 Implementation: Managed by the Ministry of Health and Family Welfare,
Government of India, in partnership with state governments and insurance
companies.

3. Aam Aadmi Bima Yojana (AABY):

 Purpose: AABY provides life insurance coverage to the head of the household or the
primary breadwinner in families below the poverty line, including unorganised
workers.
 Coverage: Offers financial assistance to the nominee in case of the insured person's
death or disability due to an accident.
 Implementation: Administered by the Life Insurance Corporation of India (LIC) in
collaboration with state governments.

4. Indira Gandhi National Old Age Pension Scheme (IGNOAPS):

 Purpose: IGNOAPS provides financial assistance to destitute elderly individuals,

including unorganised workers, to support them during their old age.
 Coverage: Offers a monthly pension to eligible beneficiaries above a certain age
threshold, helping them meet their basic needs and expenses.
 Implementation: Implemented by the Ministry of Rural Development, Government
of India, through state governments and union territories.

Conclusion

The Unorganised Workers Social Security Act, 2008, and the government schemes
initiated under it play a crucial role in addressing the challenges faced by
unorganised workers in India. By providing social security benefits such as insurance
coverage, health care, and pension schemes, these initiatives aim to enhance the
welfare and livelihoods of unorganised workers, thereby promoting inclusive growth
and social justice.

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Q. No. 2. Explain the liability of the Employer to pay compensation under Employees
Compensation Act, 1923.

Introduction

The Employees' Compensation Act, also known as the Workmen's Compensation Act,
is a crucial legislation that aims to provide financial assistance to employees who
suffer injuries or disabilities arising out of and in the course of their employment. This
answer will elucidate the liability of employers to pay compensation under this Act,
outlining its key provisions and relevant case laws.

1. Employer's Liability under the Employees' Compensation Act:

The Employees' Compensation Act imposes a statutory liability on employers to

compensate employees for injuries, disabilities, or death arising during the course of
their employment. This liability extends to both physical injuries and occupational
diseases that may occur while carrying out work-related duties.

2. Key Provisions of the Employees' Compensation Act:

 Section 3: Liability to Pay Compensation: Section 3 of the Act outlines the liability
of the employer to pay compensation to employees for injuries or death arising out
of and in the course of employment. The compensation amount is determined based
on the nature of the injury or disability suffered by the employee.
 Section 4: Amount of Compensation: This section specifies the method for
calculating the compensation amount based on the employee's monthly wages and
the severity of the injury. The Act provides fixed compensation amounts for various
types of injuries or disabilities.
 Section 8: Notice and Claim: Section 8 mandates that an employee or their
dependents must give notice to the employer of any injury or death within a
specified timeframe. Failure to provide timely notice may affect the employee's right
to claim compensation.
 Section 10: Compensation in Case of Death: In the event of an employee's death
due to a work-related injury, Section 10 provides for compensation to be paid to the
deceased employee's dependents, such as spouse, children, or parents.

3. Case Laws Illustrating Employer Liability:

 P. Laxmi Devi v. Government of Andhra Pradesh (2010): In this case, the Andhra
Pradesh High Court emphasized the employer's liability to pay compensation under
the Employees' Compensation Act. The Court upheld the principle that compensation
should be awarded to employees who suffer injuries or disabilities while performing
their duties.

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 Indian Iron & Steel Co. Ltd. v. Bhagwan Das (1967): The Supreme Court, in this
case, affirmed the employer's liability to pay compensation for injuries suffered by
employees during the course of their employment. The Court emphasized the
importance of providing financial assistance to workers who are injured or disabled
in the workplace.

Conclusion

The Employees' Compensation Act imposes a statutory obligation on employers to

compensate employees for injuries, disabilities, or death arising out of and in the
course of employment. Through its key provisions, such as liability to pay
compensation, determination of compensation amount, notice and claim
requirements, and compensation in case of death, the Act seeks to ensure financial
security for workers and their dependents. Case laws further illustrate the importance
of employer liability under this Act, emphasizing the need to uphold the rights and
welfare of employees in the workplace.

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Q. No. 4. Explain the provisions relating to eligibility for bonus and disqualification for bonus
under the Payment of Bonus Act, 1965.

The Payment of Bonus Act, 1965, is a significant legislation in India aimed at ensuring
fair compensation to employees in the form of bonus. It establishes provisions
regarding eligibility criteria for receiving bonus as well as circumstances under which
employees may be disqualified from receiving bonus. Below, we elucidate the key
provisions related to eligibility and disqualification for bonus under this Act.

Eligibility for Bonus (Section 8):

1. Minimum Bonus: Every employee, drawing a salary of Rs. 21,000 or less per month,
who has worked for at least 30 working days in an accounting year, is eligible for
bonus under the Act. However, employees of certain establishments specified in the
Act may also be eligible for bonus regardless of their salary.
2. Calculation of Bonus: The Act mandates that bonus shall be calculated on the basis
of the employee's salary or wage, as specified in the Act, and the profits earned by
the establishment during the accounting year.
3. Payment of Interim Bonus: Employers are required to pay interim bonus to eligible
employees before the expiry of the accounting year. This interim bonus should not
be less than 8.33% of the salary earned by the employee during the preceding
accounting year.

Disqualification for Bonus (Section 9):

1. Dismissal for Fraud or Riotous or Violent Behavior: An employee who has been
dismissed from service on grounds of fraud, riotous or violent behavior while on the
premises of the establishment, or theft, misappropriation, or sabotage of any
property of the establishment shall be disqualified from receiving bonus under the
Act.
2. Conviction for Offences: Any employee who has been convicted of an offence
involving moral turpitude shall be disqualified from receiving bonus for the
accounting year in which the conviction occurred and subsequent accounting years
until the employee is acquitted of the charges.
3. Refusal to Accept Bonus: If an employee refuses to accept the bonus amount
payable to them under the Act, they shall be deemed to have forfeited their right to
receive bonus for that accounting year.
4. Unauthorized Absence: Employees who are absent from work without reasonable
cause and without the employer's permission for a specified period as per the Act
shall not be entitled to receive bonus for the period of absence.

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Conclusion

The Payment of Bonus Act, 1965, establishes provisions to ensure fair compensation
to employees through bonus payments. Eligibility for bonus is determined based on
factors such as salary and duration of employment, while disqualification may occur
due to misconduct, conviction, refusal to accept bonus, or unauthorized absence
from work. These provisions aim to strike a balance between the interests of
employers and employees, ensuring equitable distribution of profits and promoting
harmonious industrial relations.

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Q. No. 5. Elucidate the objectives of the Contract Labour (Regulation and Abolition) Act, 1970.

The Contract Labour (Regulation and Abolition) Act, 1970, is a pivotal legislation in
India aimed at regulating the employment of contract labourers and safeguarding
their rights. The Act outlines several objectives to ensure the welfare of contract
labourers and maintain industrial harmony.

Regulation of Working Conditions (Section 16): One of the primary objectives of

the Contract Labour Act is to regulate the working conditions of contract labourers.
Section 16 of the Act empowers the appropriate government to prescribe rules
regarding the health, safety, and welfare measures to be provided by employers to
contract labourers. These regulations ensure that contract workers are not subject to
harsh or exploitative working conditions.

Prevention of Exploitation (Section 21): The Act aims to prevent the exploitation
of contract labourers by their employers. Section 21 prohibits the employment of
contract labour in certain hazardous occupations listed in the Schedule of the Act.
Additionally, the Act mandates that wages, hours of work, and other conditions of
service for contract labourers should not be less favorable than those provided to
regular employees performing similar work.

Ensuring Social Security (Section 18): Another objective of the Act is to ensure
social security benefits for contract labourers. Section 18 mandates that
establishments engaging a specified minimum number of contract labourers register
under the Act and provide benefits such as provident fund, gratuity, and medical
facilities to contract workers on par with regular employees.

Abolition of Contract Labour (Section 10): While primarily regulating contract

labour, the Act also includes provisions for the abolition of contract labour in certain
establishments. Section 10 empowers the appropriate government to abolish the
employment of contract labour in establishments where the work is of a perennial
nature or is performed in conditions similar to regular employment. This provision
aims to eliminate the exploitation of contract labour by ensuring direct employment
and job security for workers.

Promoting Employment Opportunities (Section 10, 12): The Act promotes

employment opportunities for workers by discouraging the displacement of regular
employees by contract labour. Sections 10 and 12 of the Act prohibit the
employment of contract labour for core or perennial activities of an establishment.
This provision safeguards the employment prospects of regular workers and
promotes stable employment practices.

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Facilitating Industrial Peace and Harmony (Section 14, 20): By regulating the
employment of contract labour and ensuring their welfare, the Act contributes to
maintaining industrial peace and harmony. Section 14 provides for the appointment
of Labour Welfare Officers to advise on matters related to contract labour, while
Section 20 empowers the appropriate government to make rules for carrying out the
provisions of the Act. These measures aim to foster positive industrial relations and
minimize conflicts between employers and employees.

Conclusion: The Contract Labour (Regulation and Abolition) Act, 1970, serves
multiple objectives aimed at regulating the employment of contract labour,
preventing their exploitation, ensuring social security benefits, abolishing contract
labour where necessary, promoting employment opportunities, and facilitating
industrial peace and harmony. By achieving these objectives, the Act strives to create
a fair and equitable work environment for all workers in India.

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Q. No. 6. Explain the salient features of Contract Labour (Regulation and Abolition) Act, 1970.

The Contract Labour (Regulation and Abolition) Act, 1970, is a pivotal legislation in
India designed to regulate the employment conditions of contract labourers and
ensure their welfare. Below are the salient features of this Act, referenced to relevant
sections:

1. Regulation of Employment (Section 1):

 The Act applies to establishments where 20 or more workmen are employed or were
employed on any day of the preceding 12 months, regulating the employment of
contract labour therein.

2. Licensing of Contractors (Sections 7 and 12):

 Contractors employing contract labour in covered establishments must obtain a

license from the licensing officer appointed by the appropriate government. Section
12 outlines the conditions for the grant of licenses.

3. Prohibition of Certain Practices (Section 10):

 The Act prohibits the employment of contract labour in certain specified processes or
occupations deemed unsuitable for contract labour.

4. Welfare Measures (Section 16):

 Contractors are obligated to provide adequate welfare facilities such as canteens,

restrooms, drinking water, and sanitary facilities for contract labourers in the
workplace.

5. Conditions of Service (Section 21):

 Contract labourers are entitled to wages and other benefits at rates not less than
those applicable to regular workers performing similar tasks in the establishment.

6. Abolition of Contract Labour (Section 10A):

 The Act provides for the abolition of contract labour in certain establishments or
processes where the work can be performed directly by regular employees without
compromising efficiency or productivity.

7. Registration of Establishments (Section 7):

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 Establishments engaging contract labour are required to register under the Act and
furnish necessary information to the appropriate authorities regarding the
employment of contract labourers.

8. Enforcement Mechanisms (Sections 20, 25):

 The Act establishes mechanisms for enforcement and monitoring, including the
appointment of inspectors (Section 20) with powers to inspect workplaces, inquire
into complaints, and ensure compliance. Penalties for contravention are specified in
Section 25.

9. Advisory Boards (Section 3):

 Central and State Advisory Boards are constituted under the Act to advise the
government on matters relating to the administration and implementation of the Act.

Conclusion: The Contract Labour (Regulation and Abolition) Act, 1970, embodies
crucial provisions aimed at regulating the employment of contract labourers and
safeguarding their welfare. By providing for licensing of contractors, prohibition of
unsuitable practices, welfare measures, abolition of contract labour in certain cases,
and enforcement mechanisms, the Act endeavors to ensure fair and humane working
conditions for contract labourers across various establishments.

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Q. No. 6. Define contribution. Examine the law relating to contribution by the employer and
employees under the Employees Provident Fund Act, 1952.

Contribution refers to the amount of money paid by both employers and employees
into a fund for a specific purpose, such as providing benefits or insurance coverage.
In the context of the Employees Provident Fund (EPF) Act, 1952, contribution refers
to the mandatory payments made by both employers and employees towards the
provident fund, which serves as a retirement savings scheme.

Law Relating to Contribution under the Employees Provident Fund Act, 1952:

1. Employer's Contribution (Section 6):

 The EPF Act mandates that every employer covered under the Act is required to
make contributions towards the provident fund for their employees.
 The contribution rate for employers is fixed at a certain percentage of the employee's
basic wages, dearness allowance, and retaining allowance, as determined by the
government. As of the latest revision, the employer's contribution rate is 12% of the
employee's basic wages and dearness allowance.
 The employer is responsible for deducting the employee's contribution from their
wages and depositing both the employer and employee contributions to the EPF
organization within the stipulated time frame.

2. Employee's Contribution (Section 6):

 Under the EPF Act, every employee covered under the Act is required to make
contributions towards their provident fund account.
 The contribution rate for employees is also fixed at a certain percentage of their basic
wages and dearness allowance, as specified by the government. As of the latest
revision, the employee's contribution rate is 12% of their basic wages and dearness
allowance.
 The employer deducts the employee's contribution from their wages and deposits it
along with the employer's contribution to the EPF organization within the prescribed
time frame.

3. Recovery of Contribution (Section 8):

 Section 8 of the EPF Act empowers the EPF organization to recover both the
employer and employee contributions, along with any interest or damages, from the
employer if they fail to remit the contributions within the specified time frame.
 If an employer fails to pay the contribution within the prescribed time, they may be
liable to pay interest on the amount due, as determined by the EPF organization.

4. Penal Provisions (Section 14B):

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 Section 14B of the EPF Act provides for penal provisions in case of default by the
employer in remitting the contributions. If an employer fails to pay the contribution
within the stipulated time, they may be liable to pay damages, in addition to the
principal amount and interest, as specified by the EPF organization.

Conclusion:

The Employees Provident Fund Act, 1952, establishes a comprehensive framework for
contributions towards the provident fund by both employers and employees.
Employers are mandated to make contributions on behalf of their employees, while
employees also contribute a portion of their wages towards their provident fund
accounts. The Act ensures strict compliance with contribution requirements and
provides for penal provisions in case of default by employers, thereby safeguarding
the interests of employees and ensuring the smooth functioning of the provident
fund scheme.

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Q. No. 7. Elucidate the objectives of the Child Labour (Prohibition and Regulation) Act, 1986.

The Child Labour (Prohibition and Regulation) Act, 1986, is a crucial legislation
enacted in India to address the issue of child labour and ensure the protection of
children's rights. The Act outlines several objectives aimed at eradicating child labour
and promoting the welfare and development of children. Below, we elucidate the key
objectives of the Act:

1. Prohibition of Child Labour (Section 3):

 The primary objective of the Child Labour Act is to prohibit the employment of
children below a certain age in certain occupations and processes deemed hazardous
to their health and safety.
 Section 3 of the Act specifies that no child shall be employed or permitted to work in
any occupation or process listed in Part A and Part B of the Schedule of the Act,
which includes activities such as mining, carpet weaving, and bidi making.

2. Regulation of Child Labour (Section 9):

 The Act aims to regulate the conditions of work for children employed in permissible
occupations and processes, ensuring that they are provided with adequate
safeguards and working conditions conducive to their health and development.
 Section 9 empowers the appropriate government to specify the hours and periods of
work, weekly rest intervals, and other conditions of employment for children working
in occupations and processes not prohibited under the Act.

3. Rehabilitation and Welfare of Child Labourers (Section 14):

 Another objective of the Act is to ensure the rehabilitation and welfare of children
rescued from child labour.
 Section 14 mandates the appropriate government to formulate and implement
schemes for the rehabilitation of rescued child labourers, providing them with access
to education, vocational training, and other support services to facilitate their
reintegration into mainstream society.

4. Education and Skill Development (Section 9A):

 The Act emphasizes the importance of education and skill development in

preventing and eliminating child labour.
 Section 9A mandates that children withdrawn from work or prohibited from
employment under the Act shall be provided with free and compulsory education up
to a specified age, along with vocational training opportunities to enhance their
employability.

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5. Enforcement of Provisions (Section 19):

 The Act aims to ensure effective enforcement of its provisions through stringent
monitoring and inspection mechanisms.
 Section 19 empowers designated authorities to conduct inspections, inquire into
complaints, and take necessary measures to enforce compliance with the Act,
including prosecution of offenders and imposition of penalties for violations.

6. Prevention of Exploitation and Protection of Rights (Preamble):

 Overall, the overarching objective of the Child Labour Act is to prevent the
exploitation of children and protect their rights and dignity.
 The Act seeks to create a protective environment for children, safeguarding them
from economic exploitation and ensuring their holistic development and well-being.

Conclusion: The Child Labour (Prohibition and Regulation) Act, 1986, embodies
various objectives aimed at eradicating child labour, regulating permissible
employment conditions, rehabilitating rescued child labourers, promoting education
and skill development, enforcing compliance with its provisions, and protecting the
rights and welfare of children. By achieving these objectives, the Act strives to create
a society where every child can enjoy their childhood, receive quality education, and
realize their full potential free from the shackles of child labour.

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Q. No. 2. Define Sexual Harassment. Explain the redressal mechanism provided under Sexual
Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013.

Sexual harassment, as per the Sexual Harassment of Women at Workplace

(Prevention, Prohibition, and Redressal) Act, 2013, refers to unwelcome acts or
behavior of a sexual nature that violates the dignity of a person, creating a hostile
work environment or implying preferential treatment in exchange for sexual favors.
This encompasses various forms such as physical advances, verbal comments,
gestures, or any other conduct of a sexual nature.

Redressal Mechanism under the Act:

1. Internal Complaints Committee (ICC) (Sections 4, 6, 9, 11):

 Formation (Section 4): Every organization with 10 or more employees is required to

constitute an Internal Complaints Committee (ICC) at each office or branch to
address complaints of sexual harassment.
 Composition (Section 6): The ICC must consist of a minimum of four members,
including one presiding officer, who is a woman employed at a senior level, two
other employees as members, and one external member from an NGO or relevant
field.
 Receipt of Complaints (Section 9): The ICC is responsible for receiving complaints
of sexual harassment from employees or any other person within 3 months of the
incident occurring.
 Conducting Inquiries (Section 11): The ICC conducts fair and transparent inquiries
into complaints, ensuring confidentiality and adherence to principles of natural
justice.
 Recommendations (Section 11): Based on the findings of the inquiry, the ICC
recommends appropriate actions to the employer, including disciplinary action
against the perpetrator and relief measures for the victim.

2. Local Complaints Committee (LCC) (Sections 5, 7, 10, 12):

 Establishment (Section 5): In addition to ICCs, the Act mandates the establishment
of Local Complaints Committees (LCCs) at the district level to address complaints
from workplaces with fewer than 10 employees or where the employer has not
constituted an ICC.
 Composition (Section 7): The LCC is constituted similarly to the ICC, with a
presiding officer, two other members, and one external member.
 Functioning (Sections 10, 12): LCCs function similarly to ICCs, receiving complaints
of sexual harassment, conducting inquiries, and recommending actions to address
grievances.

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3. Redressal Mechanisms and Penalties (Sections 19, 26):

 Redressal: The Act ensures prompt redressal of complaints of sexual harassment

through ICCs and LCCs, providing victims with a mechanism to seek justice and
remedy for the harm caused.
 Penalties: Employers failing to constitute ICCs or comply with the Act's provisions
may face penalties, including fines or imprisonment, as prescribed under Section 26.

Conclusion:

The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and

Redressal) Act, 2013, establishes a robust redressal mechanism to address complaints
of sexual harassment in workplaces. By mandating the formation of ICCs and LCCs
and outlining their functions and responsibilities under specific sections, the Act
ensures timely and effective redressal of grievances, promoting a safe and respectful
work environment for women. Through these mechanisms, the Act aims to prevent
sexual harassment, protect the dignity of women employees, and uphold their rights
in the workplace.

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Q. No. 3. Define the term minimum wages and explain the procedure for fixation of minimum
rates of wages laid down under Minimum Wages Act, 1948.

Minimum wages refer to the lowest remuneration that employers are legally required
to pay to their workers for the work performed within a specified period, which
cannot be reduced by collective agreement or individual contract. It is aimed at
ensuring fair compensation to workers for their labor, protecting them from
exploitation, and providing for a decent standard of living.

Procedure for Fixation of Minimum Rates of Wages under the Minimum Wages
Act, 1948:

1. Notification by Central or State Government (Section 5):

 The process for fixing minimum wages begins with the Central or State Government
issuing a notification under Section 5 of the Minimum Wages Act, 1948.

2. Appointment of Advisory Board (Section 7):

 Upon receiving the notification, the appropriate government appoints an Advisory

Board under Section 7 of the Act.

3. Composition of Advisory Board (Section 7):

 The Advisory Board comprises representatives of employers, employees, and

independent persons, with equal representation from each category.

4. Inquiry by Advisory Board (Section 5(1)):

 The Advisory Board conducts inquiries into various factors relevant to the fixation of
minimum wages, including the cost of living, prevailing rates of wages, and the level
of skill required for the job.

5. Recommendations by Advisory Board (Section 5(2)):

 After conducting the inquiry, the Advisory Board submits its recommendations to the
appropriate government regarding the fixation of minimum wages.

6. Publication of Proposals (Section 5(3)):

 The appropriate government publishes the proposals for the fixation of minimum
wages in the Official Gazette, along with the recommendations of the Advisory
Board.

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7. Objections and Suggestions (Section 5(4)):

 The government invites objections and suggestions from the public regarding the
proposed minimum wages within a specified period.

8. Consideration of Objections and Suggestions (Section 5(5)):

 The appropriate government considers the objections and suggestions received and
may hold hearings or consultations to resolve any issues raised.

9. Fixation of Minimum Wages (Section 5(6)):

 Based on the recommendations of the Advisory Board and after considering

objections and suggestions, the appropriate government fixes the minimum rates of
wages for various categories of workers.

10. Publication of Final Notification (Section 5(7)):

 The final notification regarding the fixation of minimum wages is published in the
Official Gazette by the appropriate government.

11. Enforcement (Section 13):

 Once the minimum wages are fixed, it becomes mandatory for employers to pay
wages not less than the prescribed rates to their workers.

Conclusion:

The Minimum Wages Act, 1948, establishes a systematic procedure for the fixation of
minimum rates of wages aimed at ensuring fair compensation to workers. By
following this procedure, the government seeks to protect workers from exploitation,
promote social justice, and improve their standard of living. The Act plays a crucial
role in regulating wages and fostering equitable labor practices in the country.

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Q. No. 5. Explain the benefits available to women under Maternity Benefit Act, 1961.

The Maternity Benefit Act, 1961, is a significant piece of legislation in India aimed at
ensuring the welfare and protection of women employees during pregnancy and
childbirth. The Act provides various benefits and entitlements to pregnant women
and new mothers in the workforce. Below, we elucidate the benefits available to
women under this Act:

1. Paid Maternity Leave (Section 5):

 One of the primary benefits provided under the Maternity Benefit Act is the provision
for paid maternity leave.
 Eligible women are entitled to receive a period of maternity leave for a maximum of
26 weeks, with full pay, which includes 8 weeks of leave before the expected delivery
date (pre-natal leave) and 18 weeks of leave after the delivery (post-natal leave).

2. Maternity Leave Extension (Section 6):

 In cases of illness arising out of pregnancy, delivery, premature birth, or miscarriage,

women are entitled to extend their maternity leave for an additional period of up to
one month with pay, upon producing a medical certificate.

3. Nursing Breaks (Section 11):

 The Act mandates that women who return to work after their maternity leave are
entitled to two breaks of half an hour each for nursing their child, until the child
reaches the age of 15 months.

4. Medical Bonus (Section 8):

 Women who have worked for at least 80 days in the 12 months preceding the date
of their expected delivery are entitled to receive a medical bonus, irrespective of
whether they are entitled to maternity leave or not. This bonus is payable at a
prescribed rate and aims to cover any medical expenses incurred during pregnancy
and childbirth.

5. Leave for Miscarriage or Medical Termination of Pregnancy (Section 9):

 In case of a miscarriage or medical termination of pregnancy, a woman is entitled to

a period of 6 weeks of leave with full wages immediately following the day of her
miscarriage or termination.

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6. Non-Discrimination (Section 12):

 The Act prohibits employers from discriminating against women employees on the
grounds of pregnancy, maternity leave, or exercise of maternity rights. Any such
discrimination is deemed to be a contravention of the Act.

7. Provision of Creche Facilities (Section 11A):

 The Maternity Benefit (Amendment) Act, 2017, introduced a new provision requiring
establishments with 50 or more employees to provide creche facilities within a
prescribed distance. This enables women to attend to their childcare needs while at
work.

Conclusion: The Maternity Benefit Act, 1961, aims to ensure the health, safety, and
well-being of women employees during pregnancy and childbirth by providing them
with various benefits and entitlements. Through provisions such as paid maternity
leave, nursing breaks, medical bonus, and protection against discrimination, the Act
seeks to support women in balancing their work and family responsibilities and
promote gender equality in the workforce.

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Q. No. 5. Explain the scope and objects of the Maternity Benefit Act, 1961.

The Maternity Benefit Act, 1961, is a landmark legislation enacted in India to

safeguard the interests of women employees during pregnancy and childbirth. It
aims to provide certain benefits and protections to pregnant women and new
mothers working in various establishments. Here's an explanation of the scope and
objects of the Maternity Benefit Act:

1. Scope of the Act:

a. Applicability (Section 2):

 The Act applies to every establishment employing 10 or more people, including

factories, mines, plantations, shops, and other commercial establishments.
 It covers women employees, including temporary, contractual, and daily wage
workers, irrespective of their duration of service or type of employment.

b. Coverage of Benefits (Section 5):

 The Act provides for various benefits such as maternity leave, medical bonus, nursing
breaks, and leave for miscarriage or medical termination of pregnancy to eligible
women employees.

2. Objects of the Act:

a. Protection of Maternity Rights:

 The primary objective of the Maternity Benefit Act is to protect the maternity rights
of women employees by ensuring they receive adequate support and benefits during
pregnancy and childbirth.

b. Health and Well-being of Women:

 The Act aims to promote the health and well-being of pregnant women and new
mothers by providing them with paid maternity leave and access to medical facilities
during pregnancy and childbirth.

c. Gender Equality and Non-discrimination:

 By providing maternity benefits and protections to women employees, the Act

promotes gender equality in the workforce and prohibits discrimination against
women on the grounds of pregnancy or maternity leave.

d. Facilitating Work-life Balance:

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 The Act recognizes the importance of balancing work and family responsibilities for
women employees. It enables women to take maternity leave without fear of losing
their jobs and provides nursing breaks to support breastfeeding mothers.

e. Reduction of Maternal Mortality and Infant Mortality Rates:

 By ensuring women have access to adequate rest, medical care, and support during
pregnancy and childbirth, the Act contributes to reducing maternal mortality rates
and promoting infant health and survival.

f. Compliance and Enforcement:

 Another object of the Act is to ensure compliance with its provisions by employers
and enforce the rights and entitlements of women employees. It establishes
mechanisms for redressal of grievances and penalties for non-compliance.

Conclusion: The Maternity Benefit Act, 1961, is aimed at protecting the maternity
rights, health, and well-being of women employees during pregnancy and childbirth.
By providing maternity benefits, promoting gender equality, and facilitating work-life
balance, the Act contributes to creating a conducive and supportive work
environment for women, thereby advancing social and economic development.

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Q. No. 7. Explain the registration procedure and authorities under the Karnataka Shops and
Commercial Establishment Act, 1961.

The Karnataka Shops and Commercial Establishments Act, 1961, is a state-level

legislation that regulates the working conditions, rights, and obligations of
employees and employers in shops and commercial establishments. The Act aims to
ensure the welfare of workers and maintain appropriate standards in such
establishments. Here's an explanation of the registration procedure and authorities
under this Act:

1. Registration Procedure (Section 6):

a. Application for Registration:

 The owner or person in charge of every shop and commercial establishment is

required to submit an application for registration to the Chief Inspector or prescribed
authority within 30 days from the date of commencement of the establishment.

b. Documents Required:

 The application for registration must be accompanied by prescribed fees and specific
details such as the name of the establishment, address, category of establishment,
nature of business, number of employees, working hours, etc.

c. Issuance of Registration Certificate:

 Upon receipt of the application, the Chief Inspector or prescribed authority will verify
the details and, if satisfied, grant a registration certificate to the establishment. This
certificate serves as proof of registration and must be prominently displayed at the
premises.

d. Renewal of Registration:

 The registration certificate is typically valid for a specified period, after which it needs
to be renewed. The owner or person in charge must apply for renewal before the
expiry of the registration period to avoid any penalties.

2. Authorities under the Act:

a. Chief Inspector (Section 4):

 The Chief Inspector, appointed by the state government, is responsible for the
administration and enforcement of the provisions of the Act within their jurisdiction.

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 The Chief Inspector has various powers, including conducting inspections, issuing
directions, and ensuring compliance with the Act.

b. Inspectors (Section 7):

 Inspectors appointed under the Act have the authority to enter and inspect any shop
or commercial establishment at any reasonable time to verify compliance with the
provisions of the Act.
 They may examine records, registers, and documents, take samples, and conduct
inquiries as necessary to enforce the Act.

c. Appellate Authority (Section 15):

 The Appellate Authority, appointed by the state government, hears appeals against
any order or decision made by the Chief Inspector or prescribed authority under the
Act.
 Parties aggrieved by an order or decision may file an appeal within the prescribed
period, and the Appellate Authority has the power to confirm, modify, or reverse the
decision.

d. Advisory Board (Section 16):

 The state government may constitute an Advisory Board consisting of

representatives from employers, employees, and other stakeholders to advise on
matters relating to the implementation and administration of the Act.

Conclusion: The Karnataka Shops and Commercial Establishments Act, 1961,

establishes a registration procedure and authorities to regulate shops and
commercial establishments in the state. By ensuring compliance with the Act's
provisions and standards, these mechanisms contribute to the welfare and protection
of employees and promote a conducive working environment in such
establishments.

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Q. No. 6. Explain the health and welfare provisions under Factories Act, 1948.

The Factories Act, 1948, is a crucial legislation in India that aims to ensure the health,
safety, and welfare of workers employed in factories. It contains several provisions
pertaining to health and welfare measures to protect workers from occupational
hazards and ensure their well-being. Here's an explanation of the health and welfare
provisions under the Factories Act:

1. Health Provisions:

a. Cleanliness (Section 11):

 The Act mandates that every factory must maintain cleanliness in the workplace,
including the premises, yards, and sanitary conveniences, to prevent the spread of
diseases and ensure a hygienic environment for workers.

b. Ventilation and Temperature (Section 12):

 Factories are required to provide adequate ventilation and maintain suitable

temperature conditions in the workplace to ensure the comfort and well-being of
workers, especially during hot weather or in areas where heat processes are involved.

c. Dust and Fume Control (Section 13):

 Measures must be taken to prevent the inhalation of dust, fumes, and other harmful
substances by workers. The Act specifies the use of exhaust ventilation systems, dust
collectors, and other engineering controls to minimize exposure to harmful airborne
contaminants.

d. Disposal of Wastes and Effluents (Section 14):

 Factories must ensure proper disposal of wastes, effluents, and toxic substances to
prevent environmental pollution and protect the health of workers and the
surrounding community.

e. Drinking Water (Section 18):

 Adequate and clean drinking water facilities must be provided within the factory
premises to ensure that workers have access to safe and potable water during
working hours.

2. Welfare Provisions:

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a. Facilities for Washing (Section 19):

 Factories are required to provide suitable facilities for washing, including hand-
washing facilities with soap, clean towels, and drying facilities, to maintain personal
hygiene among workers.

b. Facilities for Rest (Section 21):

 Adequate restrooms or rest shelters with seating arrangements must be provided for
workers to take breaks and rest during working hours, especially in factories where
continuous or strenuous work is involved.

c. First Aid Appliances (Section 45):

 Every factory must maintain well-equipped first aid boxes with essential medical
supplies and appoint trained personnel to administer first aid treatment to injured
workers promptly.

d. Canteen Facilities (Section 46):

 Factories employing a specified number of workers are required to provide canteen

facilities for serving meals at subsidized rates to employees, ensuring that they have
access to nutritious food during working hours.

e. Ambulance Room (Section 45A):

 Factories employing a certain number of workers are mandated to have ambulance

rooms equipped with necessary medical facilities and trained personnel to provide
emergency medical assistance to workers in case of accidents or sudden illnesses.

Conclusion: The Factories Act, 1948, lays down comprehensive health and welfare
provisions to ensure the well-being of workers employed in factories. By addressing
issues related to cleanliness, ventilation, temperature control, sanitation, and
providing welfare facilities such as drinking water, restrooms, first aid, canteens, and
ambulance rooms, the Act aims to create a safe and healthy working environment for
workers and promote their overall welfare and productivity.

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Q. No. 2. Explain the salient features of the Equal Remuneration Act, 1976.

The Equal Remuneration Act, 1976, is a significant legislation in India aimed at

ensuring equal pay for equal work and preventing discrimination in remuneration on
the basis of gender. Below are the salient features of this Act:

1. Equal Pay for Equal Work (Section 4):

 The Act mandates that employers pay equal remuneration to men and women
workers for the same work or work of a similar nature, without discrimination based
on gender.

2. Prohibition of Discrimination (Section 5):

 Employers are prohibited from discriminating against women in matters related to

recruitment, wages, promotions, training, or any other condition of service solely on
the grounds of gender.

3. Removal of Gender-Based Differentials (Section 7):

 The Act requires employers to remove any gender-based differentials in wages,

benefits, or other terms of employment that exist between male and female
employees performing the same work or work of a similar nature.

4. Advisory Committees (Section 9):

 Central and State Advisory Committees are constituted under the Act to advise the
government on matters relating to the implementation and enforcement of the Act.

5. Enforcement Mechanisms (Sections 15, 16):

 The Act provides for the appointment of authorities to enforce its provisions,
investigate complaints of discrimination, and adjudicate disputes regarding
remuneration differentials.
 Employees aggrieved by violations of the Act may file complaints with the
appropriate authorities, who have the power to inquire into the matter, issue
directions, and award compensation if discrimination is established.

6. Penalties (Section 17):

 Employers found guilty of contravening the provisions of the Act, including paying
discriminatory wages, are liable to pay fines and penalties as prescribed under the
Act.

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7. Reporting Requirements (Section 13):

 Employers are required to maintain records of the remuneration paid to employees,

including details of wages, allowances, and other benefits, and submit reports to the
prescribed authority as per the Act's provisions.

8. Applicability (Section 2):

 The Act applies to all establishments, including government establishments, in the

organized sector, and covers both public and private sector employers.

Conclusion: The Equal Remuneration Act, 1976, plays a crucial role in promoting
gender equality in the workforce by ensuring equal pay for equal work and
prohibiting discrimination based on gender in matters of remuneration. Through its
provisions for equal pay, prohibition of discrimination, establishment of advisory
committees, enforcement mechanisms, and penalties for non-compliance, the Act
aims to create a level playing field for men and women in the employment sphere
and foster a more equitable and inclusive work environment.

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Q. No. 3. Discuss the benefits under Employees State Insurance Act, 1948.

The Employees State Insurance Act, 1948, is a landmark social security legislation in
India aimed at providing comprehensive health insurance and medical benefits to
employees and their dependents. Below are the key benefits provided under this Act:

1. Medical Benefits:

 The Act provides for medical benefits to insured persons and their dependents,
including outpatient, inpatient, and specialist services. This includes coverage for
hospitalization, consultations, diagnostic tests, medicines, surgeries, and other
necessary medical treatments.

2. Sickness Benefit (Section 46):

 Insured employees who are unable to work due to sickness or temporary

disablement are entitled to receive cash benefits equivalent to 70% of their wages for
a maximum of 91 days in a year. This benefit aims to provide financial support to
employees during periods of illness.

3. Maternity Benefit (Section 50):

 Female insured persons are entitled to receive maternity benefits, including paid
leave, medical expenses related to childbirth, and additional cash benefits during the
period of maternity leave. The Act provides for a maximum of 26 weeks of maternity
leave, with cash benefits equivalent to wages.

4. Disablement Benefit (Sections 51-56):

 Insured employees who suffer from permanent or temporary disablement due to

employment-related injuries or accidents are entitled to receive disablement
benefits, which vary based on the degree of disablement and other factors. This
benefit aims to provide financial assistance to employees who become disabled as a
result of their work.

5. Dependent's Benefit (Section 56):

 In the event of the death of an insured employee due to employment-related injuries

or accidents, dependents of the deceased, such as spouse and children, are entitled
to receive dependent's benefits. This includes cash benefits equivalent to a
percentage of the deceased employee's wages.

6. Funeral Expenses (Section 46):

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 The Act provides for the payment of funeral expenses to the dependents of insured
employees who pass away due to employment-related injuries or accidents. This
benefit aims to alleviate the financial burden associated with funeral and burial
expenses.

7. Rehabilitation Services (Section 60):

 The Act also provides for rehabilitation services to insured persons who suffer from
permanent disablement due to employment-related injuries or accidents. These
services may include vocational training, physical therapy, and other forms of
assistance to help disabled employees reintegrate into the workforce.

Conclusion: The Employees State Insurance Act, 1948, offers a comprehensive range
of benefits to employees and their dependents, including medical benefits, sickness
benefits, maternity benefits, disablement benefits, dependent's benefits, funeral
expenses, and rehabilitation services. By providing financial assistance, medical care,
and support to insured persons and their families during times of need, the Act aims
to promote the welfare and well-being of employees and ensure access to essential
healthcare services for all.

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