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EVOLUTION IN INDUSTRIAL RELATIONS SYSTEM

The History of Labour Laws in India dates back to Pre-Independence British Era as these Labour and
Industrial Laws were enacted by British Administration to protect interests of British Employers and
Industrialists.
The industrial development took place in the middle of the nineteenth century. After industrial
development, the first organization that came into being was that of the industrialists. The owners of
the industries formed an organization.
The Industrial Revolution, a historical phenomenon, completely transformed society from rural and
agricultural to industrial and consumerist.
Early labour laws were enacted to protect employers’ interests. It was governed by the laissez-faire
doctrine, which entails a policy of minimal government intervention in the economic affairs of
individuals and society. On the other hand, contemporary labour law aims to safeguard employees
from employer exploitation.
Also the fast changing technological development, industrial production techniques, and ideological
values have brought forth in the industrial world a unique type of employer-employee relationship.
For a proper understanding of industrial relations, it seems essential to have a historical review of
industrial relations in India.

STAGES OF LABOUR MOVEMENT IN INDIA

STAGE I :
PRIOR TO THE WORLD WAR I
Pre-1918 Phase
The setting up of textiles and jute mills and laying of the railways since 1850 payed the way for that
emergence of industrial activity and, in turn, labour movement in India. Beginning with

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the Apprentice Act of 1850, which allowed orphaned children to find work when they reached the
age of 18, several labour laws covering all aspects of industrial employment have been enacted.
Some researchers have traced the origin of labour movement in India dated back to 1860. However,
most of the writers on the subject trace the history of labour movement in India since 1875.
The first labour agitation, under the guidance and leadership of Mr. S. S. Bengalee, a social reformist
and philanthropist, started in Bombay in 1875 to protect against the appalling conditions of workers
in factories, especially those of women and children and appealed to the authorities to introduce
legislation for the amelioration of their working conditions.
As a result, the first Factory Commission was appointed in Bombay in the year 1875 and the first
Factories Act was passed in 1881.
In 1881, Mr Narayan-Meghji Lokhande made renewed efforts for reform in the conditions of Indian
labour. Mr Lokhande a workman summoned a summit conference of workers engaged in mills in
Bombay Presidency. In this conference, the essential demands of labour were considered and a
number of resolutions were passed.
Mr. N. M. Lokhande may be said to be the founder of organised labour movement in India who
founded the first trade union in the country, namely, the Bombay Mill Hands Association (1890).
The major demand of this conference was that the workers should be granted a weekly holiday and
given half-an-hour rest every day. Besides, it was also insisted that workers suffering from
accidental injuries should be adequately compensated. The efforts of this conference bore some
healthy fruits. Some industrialists accepted some of the above demands.
As a consequence of success achieved by the conference, Mr Lokhande felt encouraged and he
established a trade union in Mumbai.
❖ He christened this organization Bombay Mill Hands Association 1890.
❖ He also helped in the publication of a labour magazine- “Deenbandhu”.
Thus, Mr Lokhande stood by the working class and did a great deal to improve their lot. But after the
death of Mr Lokhande, the momentum of the, work being done by him was lost. Afterwards railway
employees organized themselves into a union.
This was followed by a series of associations such as the Amalgamated Society of Railway Servants
in India (1897), The Printers’ Union of Calcutta (1905), The Madras and Calcutta Postal Union (1907),
and the Kamgar Hitwardhak Sabha (1910). All these unions aimed at promoting welfare facilities for
workers and spreading literacy among them.
The broad features of the labour movement during the pre-1918 phase may be subsumed as:
(i) The movement was led mostly by the social reformers and philanthropists and not by the workers.
(ii) There was, in fact, no trade union in existence in the true sense.
(iii) The labour movement was for the workers rather than by the workers.
(iv) The movement was confined to the revolt against the conditions of child labour and women
workers working in various industries under appalling conditions.
STAGE II
BETWEEN THE TWO WORLD WARS
Early trade union period (1918- 1938)
1918-1924 Phase:

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The phase 1918-1924 is considered as the era of formation of modem trade unionism in the country.
The trade union movement got momentum just after the close of the World War I. The postwar
economic and political conditions contributed to the new awakening of class consciousness among
the workers. This led to the formation of trade unions in the truly modem sense of the term.
As a result, Ahmedabad Textile Labour Association (1917), led by Shrimati Ansuyaben Sarabhai; the
Madras Labour Union (1918), led by B. P. Wadia; Indian Seamen’s Union, Calcutta Clerk’s Union; and
All India Postal and RMS Association were formed.
The various factors that influenced the growth of trade union movement in India during this
phase may be briefly catalogued as follows:
1. The wretched conditions of workers on account of spiralling prices of essential commodities
during the post-World-War I led workers to form trade unions to improve their bargaining power
and, in turn, living conditions.
2. The political scenario characterized by the home-rule movement and the martial law in Punjab
made the politicians to recognize the workers movement as an asset to their cause. At the same
time, workers also needed able guidance and leadership from the politicians to settle their
grievances with the employers.
3. The Russian Revolution also swayed the labour movement in India showing a new social order to
the common man in the country.
4. The setting up of the International Labour Organisation (ILO) in 1919 also gave a big fillip to the
labour movement in India. India becoming a founder-member of the ILO required deputing
delegates to the ILO. Mr. N. M. Joshi for the first time was deputed as the representative from India
to International Labour Conferences and Sessions. It ignited workers’ anxiety to organize. As a
result, the All India Trade Union Congress (AITUC) was formed in 1920. By 1924, the trade union
movement in India proliferated to the extent of 167 trade unions with a quarter million members.
This period in the history of trade union movement has been described as the Early Trade Union
Period.
1925-1934 Phase:
❖ With increasing hardships of workers, the signs of militant tendencies and revolutionary
approach in trade unionism got expression into violent strikes since 1924. The communists
gained influence in L trade union movement during this period. They split the Trade Union
Congress twice with their widening differences with the left-wing unionists.
❖ The moderate section under the leadership of Mr. N. M. Joshi and Mr. V. V. Giri seceded from the
Congress and set up a separate organization named the National Trade Unions Federation
(NTUF).
❖ Another split in AITUC took place in 1931 at its Calcutta session when the extreme left wing under
the leadership of Messrs S. V. Deshpande and B T Randive broke away and formed a separate
organization, namely, the All India Red Trade Union Congress Two Years later, the National
Federation of Labour was formed to facilitate unity among all the left-wing organizations of
labour. As a result, the AITUF and NFL merged to form the National Trade Union Federation
(NTUF).
❖ Another important feature of this period was the passing of two Acts, namely, the Trade Unions
Act 1926 and the Trade Disputes Act, 1929 which also gave a fillip to the growth of trade unionism
in India. The former Act provided for voluntary registration and conferred certain rights and
privileges upon registered unions in return for obligations. The later Act provided for the

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settlement of trade unions. This phase of the Indian labour movement may be described as The
Period of Left Wing Trade Unionism.
1935-1938 Phase:
The Indian National Congress was in power in seven provinces in 1937. This injected unity in trade
unions. As a result, the All India Red Trade Union Congress itself with the AITUC in 1935. After three
years in 1938, the National Trade Union Congress (NTUC) also affiliated with the AITUC. Other factors
that contributed to the revival of trade unions were increasing awakening among the workers to their
rights and change in the managerial attitude towards trade unions.
In 1938, one of the most developments took place was the enactment of the Bombay Industrial
Disputes Act, 1938. An important provision of the Act, inter alia, to accord compulsory recognition
of unions by the employers gave a big fillip to the growth of trade unionism in India.
1939-1946 Phase:
Like World War I, the World War II also brought chaos in industrial front of the country. Mass
retrenchment witnessed during the post-World War II led to the problem of unemployment .This
compelled workers to join unions to secure their jobs. This resulted in big spurt in the membership of
registered trade unions from 667 in 1939-40 to 1087 in 1945-46.
Rift between the Communists and the Congress- Rift between the Communists and the Congress-
Indian Trade Union Labour Federation” came into existence led by M.N. Roy.
The year 1946 was also marked by two important enactments, namely, the Industrial Employment
(Standing Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. Both the Acts, through
their provisions, contributed to strengthen the trade unionism in the country.
STAGE III: DURING AND AFTER THE WORLD WAR II
The Second World War lowered standard of living for the workers further and this led to the
strengthening of the movement. The question of war effort created a rift between the Communists
and the Congress. This, coupled with other issues, led to further split in the movement.
❖ As a result of this rift, “Indian Trade Union Labour Federation” came into existence led by M.N.
Roy.
However, the movement as a whole got stronger due to the compounding issues. This included mass
entrenchment post-war and the massive price rise that accompanied it.
Legislations like Industrial Employment Act, 1946 and Bombay Industrial Relations Act, 1946
contributed to strengthening the trade union movement. In general, the movements got more vocal
and involved in the national movement.
The two parallel labour unions continued to function. The dissensions and conflicts among
communists and Congressmen persisted and ultimately due to the efforts of Gulzarilal Nanda and
Sardar Patel, Indian National Trade Union Congress (INTUC) was established 1947.
As the INTUC has the largest membership in the country it was declared the representative union of
Indian labour. Subsequently, Hind Mazdoor Sabha (HMS) was formed in 1948 under the banner of
Praja Socialist Party. Later on, it came under the influence of Socialists. This trade union of
Communists though did not escape the scourge of rifts and dissensions it split up into two groups in
1949. As a result of this split, a new trade union came into being and this was named United Trade
Union Congress. Professor K.T. Shah headed this trade union.

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Bhartiya Mazdoor Sangh: In 1955, Jan Sangh also established a labor organization. The trade union
under the aegis of Rashtriya Swayamsevak Sangh (RSS) was known as “Bhartiya Mazdoor Sangh”.
Its headquarters was in Bhopal.
Among them INTUC and HMS were affiliated to the "Industrial Confederation of the Trade Union"
(ICFTU) which is one of the international labour organizations. AITUC was affiliated to the World
Federation of Trade Unions.
Stage IV- After Independence
Independence and partition of the country smashed the hope of the workers for getting higher wages
and better working conditions from the national Government. With a view to retaining the amenities
which they have earned earlier, a series of strikes swept the country.
The number of strikes and man days lost were the highest ever recorded in the country. Various
political parties formed and kept control over various trade unions. In 1948, Praja Socialist party
started another trade union known as Hind Mazdoor Panchayat. Indian Federation of Labour and
Hind Mazdoor Panchayat were amalgamated and formed Hind Mazdoor Sabha (H.M.S) in 1948.
Factories Act, 1948
In India , the Government appointed the Rege 'Committee to investigate into the working conditions
of labour in a number of industries. The recommendations of this committee formed the basis for the
Factories Act of 1948.
The new Act which came into operation on April 1st, 1949 is in essence a product of history. It bears
traces of all the previous factories Acts in our country and of the convention laid down by the I.L.O,
Conferences year by year. It also bears the imprint of the pattern of factory legislation evolved in Great
Britain.
Planned economic development and emphasis on Trade union
The Planning Commission drafted its first five year plan, setting therein necessary targets of
production – industrial as well as agricultural – to be achieved during the next five years. For having
industrial advancement industrial Policy Resolution in 1948, was also prepared.
As the economic progress is bound up with the Industrial peace so for the successful
implementation of the plans, particularly in the economy organised for planned production and
distribution and aiming at the realisation of social justice and the welfare of the masses, the co-
operation from Trade Unions was considered absolutely essential at different stages of the execution
of the plans.
Accordingly, it was realised that the question of maintenance of smooth industrial relations was not
a matter between employers and employees alone. But it was a vital concern of the community.
Therefore their relationship has to be of a partnership in this constructive endeavour. This was the
reason why it was provided in the first five year plan that the dignity of labour must be recognised so
that the workers who on account of hardships of illiteracy and ignorance and lack of opportunities
have not been able to play as effective a role in the working of industry as they should, could
understand and carry out their responsibility and could take an increasing share in the industry.
Accordingly the workers “right of association, organisation and collective bargaining was accepted”
and it was laid down in this plan that they (Trade unions) should be welcomed and helped to function
as part and parcel of the industrial system.

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Code of Discipline of Industries of 1958

The code was approved by all central organisations of workers and employers in 16th Indian Labour
Conference at the initiative of the then Labour Minister, Shri G.L. Nanda.
The code reflects the policy of the government to build up an industrial democracy on voluntary basis
and is the sheet anchor of Mahatma Gandhi’s philosophy of industrial relations. It aims at preserving
industrial peace with the help of employers and employees. It represents a voluntary moral
commitment and is not a legal document.
The issue of discipline in industry was discussed in the Indian Labour Conference and the code of
discipline was framed and introduced by that tripartite body in 1958. Discipline in the relationship
between workers and employers can better be enforced if both the parties accept their
responsibilities and show a willingness to discharge them. In the absence of any statutory provision
at the all-India level for the recognition of trade union, the provision in this regard has been
incorporated in the Code of Discipline.
The main elements of the code are:
1. The two parties agree to utilise the existing machinery for the settlement of industrial disputes.
2. The parties shall not resort to strikes and lock-outs without first exploring all avenues of
settlement
3. The parties accept that the disputes not settled mutually shall be referred to voluntary
arbitration.
4. The code specifies the criteria for the recognition of trade union and creates an obligation on
employers to recognise the majority union in an establishment or industry.
5. The two parties shall not resort to the unfair labour practices detailed out in the code.
6. Managements and trade unions agree to establish grievance procedure on a
7. mutually agreed basis.
First National Commission on Labour
First National Commission on Labour in 1966- was set up on 24 December 1966 under the
Chairmanship of Justice P.B. Gajendragadkar. The Commission submitted its report in August, 1969
after detailed examination of all aspects of labour problems, both in the organised and unorganised
sectors. The first National Commission on Labour recommended that works committee be set up in
any unit which has a recognised union. It also recommends growth of collective bargaining
recognition of union, prohibition and regulation of strikes & lockouts.
Stage V: Present
Second National Commission on Labour
Second National Commission on Labour was set up on 15 October 1999 under the chairmanship
of Ravindra Verma which submitted its report to the then Prime Minister Atal Bihari Vajpayee on 29
June 2002.
Need for Second National Commission on Labour
❖ During the period of three decades since setting up of the First National Commission on Labour,
there has been an increase in number of labour force etc. because of the pace of
industrialisation and urbanisation.
❖ After the implementation of new economic policy in 1991, changes have taken place in the
economic environment of the country which have in turn brought about radical changes in the
domestic industrial climate and labour market.

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❖ Changes have occurred at the work places, changes in the industry and character of
employment, changes in hours of work and overall change in the scenario of industrial relations.
These changes have resulted in certain uncertainties in the labour market requiring a new look to
the labour laws.
Historical Evolution of Labour Laws in India
Pre-Independence Era
1. Factories Act, 1881:
❖ Context:
✓ During the late 19th century, India was experiencing industrial growth, particularly in textile
mills and factories. The working conditions were harsh, with long hours, low wages, and
unsafe environments.
✓ Reports of exploitation, child labour, and poor working conditions prompted the British
administration to take legislative action.
❖ Formation:
✓ The Act was introduced in response to these reports and aimed to regulate the conditions of
work in factories. It established provisions for working hours, sanitation, and the welfare of
workers, including children.
✓ The Act was among the first attempts to address industrial working conditions in India and
set the stage for future labour legislation.
2. Mines Act, 1901:
❖ Context:
✓ The mining industry in India was crucial for economic development, but it faced significant
safety issues. Accidents, health hazards, and exploitation of workers were prevalent.
✓ The Act was part of a broader trend in the early 20th century where colonial administrations
were increasingly aware of the need to regulate industries for the welfare of workers.
❖ Formation:
✓ The Mines Act of 1901 aimed to improve safety and health conditions in the mining industry.
It introduced regulations on working hours, safety measures, and the employment of women
and children in mines.
Role of Mahatma Gandhi and Freedom Fighters in Labour Laws' History
Mahatma Gandhi
Advocacy for Workers' Rights:
❖ Early Labour Struggles:
✓ Mahatma Gandhi’s involvement in labour issues began during his time in South Africa, where
he organized workers' strikes and advocated for the rights of Indian labourers facing harsh
conditions. His experiences in South Africa profoundly influenced his approach to labour
rights in India.
❖ Indian Textile Workers’ Strike (1918):
✓ In 1918, Gandhi played a pivotal role in the strike by textile workers in Ahmedabad. The
workers were demanding higher wages due to the rising cost of living. Gandhi’s leadership

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and negotiation skills helped the workers secure a 22% wage increase, a significant victory
for labour rights.
✓ This strike demonstrated Gandhi's commitment to workers' rights and his ability to mobilize
and advocate for labour causes effectively.
Influence on Labour Movement:
❖ Labour Movements and Trade Unions:
✓ Gandhi’s philosophy of non-violent protest and his support for workers' rights had a lasting
impact on the Indian labour movement. He encouraged the formation of trade unions and
labour organizations to advocate for workers’ issues.
✓ His principles of satyagraha (non-violent resistance) influenced many labour leaders and
activists in India, fostering a culture of peaceful yet assertive advocacy for workers' rights.
Economic and Social Justice:
❖ Economic Ideas:
✓ Gandhi’s vision of economic justice included fair wages, better working conditions, and the
upliftment of the working class. His emphasis on moral and ethical practices in economic
activities influenced subsequent labour legislation.
✓ His ideas contributed to the broader discourse on social and economic justice, which laid
the foundation for post-independence labour reforms.
Jawaharlal Nehru
Support for Labour Reforms:
❖ Post-Independence Labour Policies:
✓ As the first Prime Minister of India, Jawaharlal Nehru supported the development of labour
laws that aimed to improve workers' conditions and promote industrial peace.
✓ Nehru's government prioritized labour reforms as part of its broader economic policy,
introducing legislation such as the Industrial Disputes Act, 1947, to address labour disputes
and promote industrial harmony.
Economic Planning:
❖ Five-Year Plans:
✓ Nehru's emphasis on planned economic development included considerations for labour
welfare. His policies aimed to balance industrial growth with the protection of workers' rights
and the creation of a more equitable society.
Subhash Chandra Bose
Labour Rights and Independence Movement:
❖ Advocacy for Workers:
✓ Subhash Chandra Bose, a prominent leader of the Indian independence movement, was also
concerned with workers' rights. He believed that labour issues were integral to the struggle
for independence and social justice.
✓ Bose's focus on workers' rights complemented his broader vision of social and economic
reform in India.
Role in Trade Union Movement:

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❖ Trade Union Support:

✓ Bose’s support for the trade union movement helped to elevate the significance of labour
issues in the broader independence struggle. He worked to strengthen labour organizations
and promote workers' rights as part of the fight for national freedom.
Dr. B.R. Ambedkar
Champion of Workers and Social Justice:
❖ Labour Rights Advocate:
✓ Dr. B.R. Ambedkar, a key figure in the drafting of the Indian Constitution, was also a strong
advocate for labour rights. His work emphasized the need for legal protections for workers
and the importance of addressing inequalities in the workplace.
✓ Ambedkar’s efforts contributed to the development of labour laws that aimed to protect the
rights of workers and promote social justice.
Constitutional Reforms:
❖ Impact on Legislation:
✓ Ambedkar’s influence extended to labour legislation through his role in shaping the
Constitution of India. His emphasis on social justice and equality informed the legal
framework for labour rights and welfare.
Influence of Freedom Fighters on Labour Legislation
❖ Social and Economic Justice:
✓ The contributions of Gandhi, Nehru, Bose, and Ambedkar in advocating for workers' rights
and social justice played a crucial role in shaping India's labour laws. Their activism and
leadership laid the groundwork for labour reforms that aimed to improve working conditions
and promote fairness.
❖ Mobilization and Advocacy:
✓ The freedom fighters’ efforts in mobilizing workers and advocating for their rights highlighted
the need for comprehensive labour legislation. Their actions and ideologies influenced the
development of laws that addressed workers’ grievances and aimed to create a more
equitable work environment.
❖ Post-Independence Reforms:
✓ The principles and values championed by these leaders continued to influence labour
policies and reforms after India’s independence. Their legacy is reflected in the ongoing
efforts to improve labour conditions and ensure social justice through legislation.
Post-Independence Era
1. Industrial Disputes Act, 1947:
Context:
✓ After India gained independence in 1947, the country faced significant industrial unrest.
Strikes, labour disputes, and conflicts between employers and employees were common.
✓ The need for a structured mechanism to handle industrial disputes became evident to
maintain industrial peace and economic stability.
Formation:

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✓ The Industrial Disputes Act was enacted to provide a legal framework for resolving disputes
between employers and employees. It established Labour Courts and Industrial Tribunals to
adjudicate disputes and provided guidelines for strikes and lockouts.
2. Minimum Wages Act, 1948:
Context:
✓ Post-independence India was dealing with widespread poverty and inequality. Many workers,
particularly in informal sectors, were earning wages that were not sufficient to meet their
basic needs.
✓ The Act aimed to address this issue by setting a legal minimum wage to prevent exploitation
and ensure a basic standard of living for workers.
Formation:
✓ Enacted in 1948, the Minimum Wages Act was designed to set minimum wage standards
across various industries and regions. It aimed to improve the economic conditions of
workers and reduce wage disparity.
3. Employees' Provident Funds and Miscellaneous Provisions Act, 1952:
Context:
✓ As the Indian economy grew, there was an increasing need for social security measures to
provide financial stability to workers after retirement or in case of emergencies.
✓ The existing provisions for employee welfare were fragmented and needed consolidation.
Formation:
✓ This Act was introduced to create a provident fund scheme for employees, ensuring financial
security after retirement. It also included provisions for family pensions and insurance
benefits.
4. Payment of Gratuity Act, 1972:
Context:
✓ The need for a comprehensive scheme to provide financial benefits to employees after long
service was recognized. Prior to this Act, there were no standardized provisions for gratuity
payments.
Formation:
✓ The Payment of Gratuity Act aimed to provide a lump sum payment to employees upon
retirement, resignation, or termination, based on their length of service. It was designed to
offer financial security to employees after their employment ends.
5. Employees' State Insurance Act, 1948:
Context:
✓ The Act was introduced to address the lack of social security and health benefits for industrial
workers. The post-war period highlighted the need for comprehensive health insurance and
social security.
Formation:
✓ The Employees' State Insurance Act established a scheme for medical benefits, cash
benefits in case of sickness, maternity benefits, and other social security measures for
workers.

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Recent Developments
1. Code on Wages, 2019:
Context:
✓ The existing wage-related laws were scattered and complex, creating difficulties for
compliance and enforcement. There was a need to streamline and simplify wage regulations.
Formation:
✓ The Code on Wages consolidates previous wage-related laws into a single code. It aims to
provide a uniform minimum wage structure, ensure timely payment, and promote fair wage
practices across industries.
2. Code on Industrial Relations, 2020:
Context:
✓ Industrial relations were characterized by fragmented laws and complex dispute resolution
mechanisms. Reforms were needed to simplify and modernize industrial relations.
Formation:
✓ The Code on Industrial Relations combines and simplifies existing laws related to trade
unions, standing orders, and industrial disputes. It seeks to provide a more streamlined and
efficient framework for managing industrial relations and resolving disputes.
3. Code on Social Security, 2020:
Context:
✓ Social security coverage was limited and fragmented, particularly for workers in the informal
sector. There was a need to expand and unify social security provisions.
Formation:
✓ This Code consolidates various social security laws and extends benefits to a broader range
of workers, including those in the informal sector. It aims to provide comprehensive social
security coverage and improve worker welfare.
4. Code on Occupational Safety, Health and Working Conditions, 2020:
Context:
✓ Workplace safety and health regulations were dispersed across multiple laws, making
compliance challenging. There was a need for a unified approach to workplace safety.
• Formation:
✓ The Code on Occupational Safety, Health and Working Conditions consolidates existing laws
related to workplace safety and health. It aims to improve safety standards, reduce
occupational hazards, and enhance worker protection.
2. Importance of Labour Laws
Protection of Workers' Rights:
❖ Wages and Employment Conditions: Labour laws ensure that workers receive fair wages and
work under safe and healthy conditions. They set minimum standards for pay, working hours, and
workplace safety.

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❖ Dispute Resolution: Labour laws provide mechanisms for resolving disputes between
employers and employees, helping to maintain industrial harmony and prevent conflicts from
escalating.
Economic Stability:
❖ Regulation of Employment Relations: By regulating employment relations and resolving
disputes, labour laws contribute to a stable and predictable work environment. This stability is
crucial for economic growth and development.
❖ Productivity and Efficiency: Fair treatment of workers and the provision of safe working
conditions can lead to increased productivity and efficiency, benefiting both employers and the
economy.
Social Justice:
❖ Equity and Fairness: Labour laws promote social justice by addressing issues of inequality and
discrimination in the workplace. They provide protections for marginalized groups and ensure
that all workers are treated fairly.
❖ Protection of Vulnerable Groups: Specific provisions in labour laws protect vulnerable groups,
such as women, children, and workers in informal sectors, ensuring their rights and welfare are
safeguarded.
Improvement of Working Conditions:
❖ Health and Safety Regulations: Labour laws establish standards for workplace health and
safety, reducing the risk of accidents and injuries. This contributes to the overall well-being of
workers and enhances their quality of life.
❖ Work-Life Balance: Regulations on working hours and rest periods help maintain a balance
between work and personal life, contributing to better mental and physical health for workers.
5. Comparative Analysis
Comparison with International Labour Laws
1. United States:
❖ Worker Protection:
✓ Employment At-Will: In the US, employment is generally "at-will," which means employers
can terminate employees without cause, whereas in India, employment termination is
regulated more strictly with required procedures and justifications.
✓ Wage Regulations: The Fair Labour Standards Act (FLSA) establishes federal minimum wage
and overtime requirements in the US. In contrast, India’s Minimum Wages Act sets minimum
wage standards that vary by state.
❖ Dispute Resolution:
✓ Arbitration and Mediation: The US often uses arbitration and mediation for resolving
disputes, which are less formal and more flexible compared to India’s structured system
involving labour tribunals and courts.
2. European Union:
❖ Worker Protection:

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✓ Stronger Protections: The EU provides extensive labour protections, including stringent

rules on working hours, paid leave, and job security, which are often more comprehensive
than those in India.
✓ Work-Life Balance: The EU emphasizes work-life balance through directives like paid
parental leave and annual leave. Indian laws offer fewer provisions in this area.
❖ Dispute Resolution:
✓ Labour Courts and Committees: The EU utilizes a combination of labour courts and
conciliatory committees, similar to India’s system but with a greater focus on mediation.
3. China:
❖ Worker Protection:
✓ Labour Contract Law: China's Labour Contract Law mandates written contracts and
protects against unjust dismissal, akin to India's Industrial Disputes Act.
✓ Wage Regulations: Minimum wage standards in China are set by local governments, similar
to India’s state-specific regulations.
❖ Dispute Resolution:
✓ Arbitration First: In China, arbitration is the mandatory first step in labour disputes before
proceeding to court, whereas India’s system allows for direct recourse to tribunals.
6. Case Studies
Significant Legal Cases:
1. Vishaka v. State of Rajasthan (1997):
✓ Issue: Sexual harassment at the workplace.
✓ Outcome: The Supreme Court of India established guidelines for preventing sexual
harassment, which led to the Sexual Harassment of Women at Workplace (Prevention,
Prohibition, and Redressal) Act, 2013.
2. D.K. Yadav v. J.M.A. Industries Ltd. (1993):
✓ Issue: Termination of an employee without notice.
✓ Outcome: The Supreme Court underscored the importance of fair procedures and
adherence to principles of natural justice in termination cases.
3. Unni Krishnan, J.P. v. State of Andhra Pradesh (1993):
✓ Issue: Right to education and its impact on labour laws.
✓ Outcome: The Court established the right to education as a fundamental right, influencing
labour laws related to child labour and education
History of May Day or Labour Day
❖ May 1 is a metonym for International Workers Day, a day of celebration of the working class.
Behind it lies a history dating back over one-and-a-half centuries.
❖ The roots of May 1 can be traced to the second part of the 19th century when there were
revolutions, and organisations behind which industrial workers rallied. Countries including
Germany, France, England, the US saw demand for reducing work time from 12-15 hours a day to
eight hours.

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❖ The Communist Manifesto written by Karl Marx and Engels in 1848 had a great impact on workers
across various countries that were feeling the heat of industrialisation.
❖ Crop failure in the 1840s led to widespread anti-feudal upheavals called ‘The Revolutions of
1848’. As a result the International Workingmen’s Association, known as the First International,
was born in 1864 as an umbrella association for all socialist and communist organisations, at a
workers’ congregation in London.
❖ After the First International dissolved in 1876 over an ideological rift, the Second International
emerged in 1889 as a united outfit of socialist and labour parties. It was this organisation that
declared May 1 as International Workers’ Day and March 8 as International Women’s Day.
❖ Historically, an event is referred to as the origin of May 1 as Workers’ Day -- the Haymarket Affair
or the Haymarket massacre. When labourers assembled at the Haymarket Square in Chicago on
May 4, 1886 and took out a rally for eight-hour work day, a bombing attack was mounted on them
by some unknown forces. Police firing and loss of 11 lives were reported at the rally that ended in
riot.
❖ May Day in India
❖ As for May Day in India, the country witnessed the first celebration of Labour Day in 1923 in what
was then Madras. Led by Singaravelar, leader of the Labour Kisan Party of Hindustan, two
meetings were held, one at Triplicane Beach and one near the Madras High Court. It was at these
meetings that a resolution was passed urging the British government to declare May 1 as Labour
Day and also a government holiday. It was the first occasion in India on which the red flag was
used.

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APPROACHES TO INDUSTRIAL RELATIONS

❖ In the present scenario, the relationship between the employer and the employees have changed
to a great extent what it used to be in the 1900s. The industries today are becoming more of
technology-oriented, which has generated the need for skilled and educated personnel in the
organizations.
❖ Different scholars and experts have given various views in the context of industrial relations. To
understand each of these approaches in details, read below:

1. Unitary:
❖ As the name suggests, the unitary approach can be seen as a method of bringing together the
teamwork, common objective, individual strategy and mutual efforts of the individuals.
❖ This theory believes that the conflicts are non-permanent malformations, which are a result
of improper management in the organization.
❖ Moreover, if everyone works towards the achievement of the common goals by maintaining
peace and cooperation in the workplace, it will tend to benefit everyone associated with the
organization. It also considered the organizational conflicts resulting in strikes to be useless and
destructive.

The other aims of the unitary approach are as follows:

❖ To create a productive, effective and harmonious work environment;
❖ To develops a trustworthy, open, fair and transparent work culture;
❖ To create a cordial work environment;
❖ To restrict the role of the tribunals and other government associations like the trade unions and
initiates direct negotiation between the management and the employees.

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❖ Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees.
Trade unions are deemed as unnecessary and conflict is perceived as disruptive.
❖ Under unitary approach, industrial relations are grounded in mutual co-operation, individual
treatment, team-work, and shared goals. Emphasis on a reactive industrial relations strategy.
❖ They seek direct negotiations with employees.
❖ Participation of government, tribunals and unions is not sought or is seen as being necessary for
achieving harmonious employee relations.
❖ The unitary approach is being criticized as a tool for seducing employees away from unionism
and socialism. It is also criticized as manipulative and exploitative.
2. Pluralistic:
❖ The pluralist theory also called the ‘Oxford Approach’, was proposed by Flandersin the year
1970. This approach explained that the management and the trade unions are the different
and robust sub-groups which unanimously form an organization.
❖ Collective bargaining was considered to be a useful technique for resolving organizational
conflicts. Due to this, the management’s role has transformed from imposition and control; to
influencing and coordinating with the workers.
The pluralistic approach perceives:
❖ The organization should appoint personnel experts and industrial relations specialists to act
as mediators between the management and trade unions. They need to look into the matters
of staffing, provide consultation to the managers and the unions, and negotiate with both the
parties in case of conflicts.
❖ The organization should ensure that the trade unions get recognized and the union leaders or
representatives can perform their duties freely.
❖ In the case of industrial disputes, the organization can avail the services of the external agent
for settlement of such issues.
❖ The managers should resolve to a collective bargaining agreement when there is a need for
negotiation and settlement with the trade unions.
R= f (b)
R= f ( c)
Where,
❖ ‘R‘ is the rules of industrial relations;
‘b‘ is collective bargaining;
‘c‘ is resolving conflicts through collective bargaining.
❖ It depicts that the rules of industrial relations are a function of collective bargaining, or in other
words, it is a function of handling conflicts through collective bargaining.
❖ Conflict between the management and workers is understood as inevitable and, in fact, is
viewed as conducive for innovation and growth.
❖ Employees join unions to protect their interests and influence decision-making by the
management.
Unions, thus, balance the power between the management and employees.
❖ In the pluralistic approach, therefore, a strong union is not only desirable but necessary.

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❖ Similarly, society’s interests are protected by state intervention through legislation and
industrial tribunals which provide orderly process for regulation and resolution of conflict.
❖ According to pluralists, industrial conflict is inevitable and it needs to be contained within the
social mechanism of collective bargaining, conciliation, and arbitration.

UNITARISM PLURALISM

DEFINITION Approach that emphasis on the Approach that emphasis on legitimate

shared interest of all members interests of divergent sub- group
members

GOALS & Share Common Interest of all Divergent Interest of members

INTERESTS members

CONFLICTS Dysfunctional Conflicts Conflicts are acknowledged and are

even desirable.

PATERNALISTIC Paternalistic Approach and Does not have a paternalistic approach

APPROACH expects loyalty of all and does not expects loyalty of all
employees. employees
But to exercise economic (wages and
benefits) as well as political (control)
power.

Karl Marx – the Marxist Approach:

❖ Lenin came up with the concept of a Marxist approach in the year 1978, where he emphasized
the social perspective of the organization.

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❖ This theory perceived that the industrial relations depend upon the relationship between the
workers (i.e., employees or labour) and the owners (i.e., employer or capital). There exists a class
conflict between both the groups to exercise a higher control or influence over each other.
The assumptions of this approach are as follows:
❖ Industrial relations are a significant and never-ending source of conflicts under capitalism which
cannot be avoided.
❖ Understanding the conceptions of capitalized society, capital accumulation process and the
pertaining social relations, give a better overview of the industrial relations.
❖ The Marxist theory assumed that the survival of the employees without any work is more
crucial than the survival of the employer without the labours.
Marxist:
❖ Marxist approach is based on the proposition that the economic activities of production,
manufacturing, and distribution are majorly governed by the objective of profit. Marxists, like the
pluralists, regard conflict between employers and employees as inevitable. Marxists see it as a
product of the capitalist society. Conflict arises not only because of competing interests within
the organization, but because of the division within society. Industrial conflict is, thus, seen as
being synonymous with political and social unrest.
❖ The Marxist approach argues that for social change to take place, class conflict is required. Social
change initiates strong reactions from the worker class and bridges the gap between the
economically settled owners of factors of production and the economically dependent worker
class. Trade unions are seen both as labour reaction to exploitation by capital, as well as a
weapon to bring about a revolutionary social change. Concerns with wage-related disputes are
secondary. Trade unions focus on improving the position of workers within the capitalist system
and not to overthrow. For the Marxists, all strikes are political.
❖ Besides, Marxists regard state intervention via legislation and the creation of industrial tribunals
as supporting management’s interest rather than ensuring a balance between the competing
groups. This view is in contrast to the belief of the pluralists who argue that state intervention is
necessary to protect the overall interest of society. To Marxists, the pluralist approach is
supportive of capitalism. Consequently, enterprise bargaining, employee participation,
cooperative work culture, and the like which help usher in cordial industrial relations are not
acceptable to Marxists.
❖ The capitalist ownership of the enterprise endeavour to purchase labour at the lowest possible
price in order to maximise their profits. The lower the price paid by the owner of the means of
production for the labour he employs, the greater is his profit.
❖ The Marxist analysis of industrial relations, however, is not a comprehensive approach as it only
takes into account the relations between capital and labour. It is rather, a general theory of
society and of social change, which has implications for the analysis- of industrial relations
within what Marxists would describe as capitalist societies.

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KEY- POINTS UNITARY APPROACH PLURALISTIC MARXIST APPROACH

APPROACH

INTEREST COMMON DIVERGENT EQUAL DISTRIBUTION OF

POWER, WEATH,
CONTROL

CONFLICTS TEMPORARY UNAVOIDABLE UNAVOIDABLE

AIM ORGANIZATION’S EMPLOYEE SHOULD BE AGAINST CAPITALISM

PERFORMANCE PROTECTED

MANAGEMENT SINGLE AUTHORITY DISTIBUTIVE CAPITAL BASED

CENTRALIZED AUTHORITY
CONTROL DECENTRALIZED
SOCIAL DIALOGUE: CONTROL
BIPATRITE SOCIAL DIALOGUE:
ENHANCE LOYALTY & TRIPATRITE
MOTIVATE WORKERS ENHANCE LOYALTY &
MOTIVATE WORKERS

UNIONS NOT AT ALL PLAYS IMPORTANT IMPORTANT

NECESSARY ROLE CAUSE PLOITICAL
HINDRANCE IN PROTECT WORKERS MOBILIZATION
PROGRESS RIGHT RESIST TO CAPITALISM

RESOLUTION [Link] SOLVE CONFLICTS REVOLUTION

AUTHORITY COLLECTIVE CHANGE IN SOCIETY
2. BETTER BARGAINING
COMMUNICATION

❖ Elton Mayo – the Human Relations Approach:

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Elton Mayo with Roethlisberger, Whitehead, W. F. Whyte and Homans – the Human Relations
Approach:
In the words of Keith Davies, human relations are “the integration of people into a work situation that
motivates them to work together productively, cooperatively and with economic, psychological and
social satisfactions.”
According to him, the goals of human relations are –
(a) to get people to produce
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
❖ The human relations approach highlights certain policies and techniques to improve employee
morale, efficiency and job satisfaction. It encourages the small work group to exercise
considerable control over its environment and in the process helps to remove a major irritant in
labour-management relations. But there was reaction against the excessive claims of this school
of thought in the sixties.
❖ Some of its views were criticised by Marxists, pluralists, and others on the ground that it
encouraged dependency and discouraged individual development, and ignored the importance
of technology and culture in industry.
❖ Taking a balanced view, however, it must be admitted that the human relations school has thrown
a lot of light on certain aspects such as communication, management development, and
acceptance of work place as a social system, group dynamics, and participation in management.
❖ The concept of human relations approach underlines the need for making the individuals familiar
with the work situations of the organization and uniting the efforts of the workers. The purpose is
to meet the social, psychological and economic objectives, by enhancing the overall
productivity.

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Some of the primary objectives of the human relations approach are as follows:
❖ To ensure cooperation by promoting the mutual interest of the organization;
❖ to enhance the productivity of the individuals;
❖ to satisfy the psychological, social and economic needs of the employees.
❖ This theory focused on enhancing the level of efficiency, worker’s morale and job
satisfaction by applying specific techniques or tools and policies.
❖ The human relations approach highlighted a technique for enforcing proper control over the work
environment by forming small workgroups and at the same time eliminating the hurdles of
sound labour-management relations.
Human Resource Management Approach:
The term, human resource management (HRM) has become increasingly used in the literature of
personnel/industrial relations. The term has been applied to a diverse range of management
strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable,
term for personnel or industrial relations management.
Some of the components of human resource management are –
a. Human resource organisation;
b. Human resource planning;
c. Human resource systems;
d. Human resource development;
e. Human resource relationships;
f. Human resource utilisation;
g. Human resource accounting; and
h. Human resource audit.
This approach emphasises individualism and the direct relationship between management and its
employees. Therefore, it questions the collective regulation basis of traditional industrial relations.

M K Gandhi – The Gandhian Approach:

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❖ Gandhiji can be called one of the greatest labour leaders of modern India. His approach to labour
problems was completely new and refreshingly human. He held definite views regarding fixation
and regulation of wages, organisation and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labour indiscipline, and workers participation in
management, conditions of work and living, and duties of workers.
❖ The Ahmedabad Textile Labour Association, a unique and successful experiment in Gandhian
trade unionism, implemented many of his ideas.
❖ Following are the various features of the trusteeship or Gandhian theory:
❖ Gandhi Ji was not against strikes; instead, he gave the following conditions to carry out
a favourable strike:
✓ The workers or labours can go on a strike only if there is a specific grievance.
✓ There should be complete non-violence while carrying out strikes.
✓ The ones who are not involved in the strikes should not be tormented.
❖ Though Gandhi Ji was not against carrying out strikes, he believed that it should be the last
option to which the labour should resort to, after the failure of all the constitutional and peaceful
ways of resolving conflicts and negotiating with the employer.
❖ The Gandhian approach illustrated that nature had provided us with human capabilities and
different kinds of property. Thus, such nature’s gift belongs to the whole society and cannot be
considered as of personal possession by anyone.
❖ The objective of this theory is to adopt non-violent ways to bring in economic parity and material
enhancement in a capitalist society.
❖ Gandhi Ji perceived that every organization is a joint venture, and the labour should be treated
as associates or co-partners with the shareholders. Moreover, the workers should have proper
knowledge of all the business transactions as it is their right.
❖ He focussed on increasing the production and believed that the gains should be shared with
the employees because of whom it has been possible.
❖ He also emphasized that the industrial disputes and conflicts between the parties should be
resolved healthily through interactions, arbitration and bilateral negotiations.
❖ Gandhiji laid down certain conditions for a successful strike.
❖ These are –
(a) the cause of the strike must be just and there should be no strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or “blacklegs” should never be molested.
❖ He was not against strikes but pleaded that they should be the last weapon in the armoury of
industrial workers and hence, should not be resorted to unless all peaceful and constitutional
methods of negotiations, conciliation and arbitration are exhausted. His concept of trusteeship
is a significant contribution in the sphere of industrial relations.
❖ According to him, employers should not regard themselves as sole owners of mills and factories
of which they may be the legal owners. They should regard themselves only as trustees, or co-
owners. He also appealed to the workers to behave as trustees, not to regard the mill and

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machinery as belonging to the exploiting agents but to regard them as their own, protect them
and put to the best use they can.
❖ In short, the theory of trusteeship is based on the view that all forms of property and human
accomplishments are gifts of nature and as such, they belong not to any one individual but to
society. Thus, the trusteeship system is totally different from other contemporary labour
relations systems. It aimed at achieving economic equality and the material advancement of the
“have- nots” in a capitalist society by non-violent means.
❖ At the same time, he not only endorsed the workers’ right to adopt the method of collective
bargaining but also actively supported it. He advocated voluntary arbitration and mutual
settlement of disputes.
❖ He also pleaded for perfect understanding between capital and labour, mutual respect,
recognition of equality, and strong labour organisation as the essential factors for happy and
constructive industrial relations. For him, means and ends are equally important.
Max Weber – the Social Action Approach:

Closely related to Weber’s concern related to control in organisations was his concern with “power
of control and dispersal”. Thus, a trade union in the Weber’s scheme of things has both economic
purposes as well as the goal of involvement in political and power struggles.
❖ Some of the major orientations in the Weberian approach have been to analyse the impact of
techno-economic and politico-organisational changes on trade union structure and processes,
to analyse the subjective interpretation of workers’ approaches to trade unionism and finally to
analyse the power of various components of the industrial relations environment – government,
employers, trade unions and political parties.
❖ Thus, the Weberian approach gives the theoretical and operational importance to “control” as
well as to the power struggle to control work organisations – a power struggle in which all the
actors in the industrial relations drama are caught up.
Sociological Approach:
❖ Industry is a part of society and it is a community made up of individuals and groups with different
family background, educational level, personalities, emotions, likes and dislike, etc. These
differences in individual attitudes and behaviour create problems of conflict and cooperation in
industry.

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❖ The value systems, customs, status symbols and institutions of the society in which industry
functions affect relations between the parties involved. Urbanisation, housing and transport
problems in industrial areas, disintegration of joint family system, and other social problems
cause stress and strains along workers. The social and cultural changes shape behaviour
patterns and cause adjustments in employer-employee relations. There cannot be harmony and
peace in industry when the society is in turmoil.
Giri Approach:
According to Shri V.V. Giri, the late President of India, collective bargaining and mutual negotiations
between management and labour should be used to settle industrial disputes. He suggested that
there should be bipartite machinery in every industry and every unit of the industry to settle
differences from time-to-time with the active encouragement of the Government.
❖ Giri Approach gave emphasis that industrial peace might be secured through machinery of
collective bargaining. The trade unions should grow strong and self-reliant without the assistance
of any outsider. There must be mutual settlement of disputes through collective bargaining and
voluntary arbitration and not the compulsory adjudication.
❖ This approach gave emphasis that internal settlement should be preferred and compulsory
adjudication should be taken up as the last resort and only in exceptional circumstances.

Psychological Approach
❖ The psychologists perceived the problem of the industrial relations as a result of the varying
perception and mindset of the key participants, i.e., the employees and the management.
❖ The ‘thematic application test’ was conducted by Mason Harie to understand the behaviour,
mindset and perception of the two significant workgroups, i.e., executive and the union leaders,
in a particular situation.
❖ In this test, both the groups were asked to rate and interpret the photograph of an ordinary
middle-aged person, and the results were drastically contrasting. The union leaders perceived
the person to be a ‘manager‘ whereas, the executives thought that the person was a ‘union
leader‘.
The major interpretations of this test were as follows:
❖ The general belief of a management representative is entirely different from that of a labour
representative.
❖ Both the management and labour do not consider each other to be trustworthy.
❖ Even each of these groups considers that the other one lacks emotional and interpersonal
attributes.
❖ These contrasting impressions are a result of certain economic as well as non-economic
factors, like values, power, position, personal objectives, recognition, beliefs, education, social
security and income of the individuals.
❖ Also, each of these parties forms a negative image or perception of each other. Due to which
they always find fault in the actions and behaviour of one another.
❖ As a result of the factors mentioned above, there remains a tensed interpersonal relation leading
to conflicts which ultimately hinders the image and interest of the individuals involved.

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SYSTEMS APPROACH (MODELS)

• Model’s of Industrial Relations
1. Dunlop’s Industrial Relations System Model-Four Interrelated Elements.
(i) Actors
(ii) Shared Ideology
(iii) Contexts
(iv) Rules

i. Actors:
a) Hierarchy of managers and their representatives in supervision
b) A hierarchy of workers (non-managerial) and any spokesmen
c) Specialised governmental agencies (and specialised private agencies created by the first two
actors) concerned with workers, enterprises, and their relationships.

ii. Shared Ideology:

a) Beliefs within the system which not only define the role of each actor or groups of actors but also
define the view that they have of the role of other actors in the system.
b) Set of ideas and beliefs held by the actors.
c) Helps to bind or integrate the system together.

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iii. Contexts:
It is the environmental conditions in which actors interact, such as technology, market, budgetary,
working conditions and the locus of power in the society.

iv. Rules:
The actors who set the web of rules interact in the context of an industrial relations system taken as
a whole. These rules are broadly grouped into three categories:
a) Rules governing compensation in all its forms;
b) The duties and performance expected from workers, including rules of discipline for failure to
achieve these standards;
c) Rules defining the rights and duties of workers.

Criticisms of the Dunlop Model:

(i) Descriptive
(ii) Lacks ability to predict outcomes/ relationships
(iii) Underestimates importance of power and conflict in employment relationship
(iv) Static.
(v) Cannot explain rapid decrease in unionization especially in the U.S.

Multiple Choice Questions (MCQ)

1. Industrial relations cover the following area(s)
a) Collective bargaining
b) Labour legislation
c) Industrial relations training
d) All of the above
(Answer: d)

2. Which of the following is not an approach to industrial relations?

a) Unitary approach
b) Pluralistic approach
c) Marxist approach
d) Employee’s approach
(Answer: d)

3. Under unitary approach, industrial relation is grounded in

a) Mutual co-operation
b) Individual treatment
c) Team work and shared goals

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d) All of the above

(Answer: d)

4. Pluralistic approach perceives ______ as legitimate representative of employee interests

a) Trade unions
b) Management
c) Board of Directors
d) None of the above
(Answer: a)

5. In Marxist approach, concerns with wage related disputes are

a) Primary
b) Secondary
c) Tertiary
d) Not considered
(Answer: b)

6. Elton Mayo and his team believed in the positive nature of

a) Managers
b) Management
c) Employees
d) All of the above
(Answer: c)

Previous year questions:

1. The famous 'Giri' approach in Industrial Relations in India espouses the cause of
a) Adjudication
b) Compulsory Collective Bargaining
c) Conciliation
d) Arbitration
Answer: D

2. Which one of the following is the process in which representatives of workmen and
employer involved in an industrial dispute are brought together before a third person or
group of persons who facilitates/facilitate through mediation to reach a mutually
satisfactory agreement?
a) Arbitration
b) Adjudication
c) Conciliation

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d) Collective negotiation
Answer: c

3. Which one of the following perspectives of industrial relations is based on the assumption
that both the parties strive (and have opportunity) to exercise economic (wages and
benefits) as well as political (control) power?
a) Pluralistic perspective
b) Unitary perspective
c) Radical perspective
d) Trusteeship perspective
Answer: a

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CONSTITUTIONAL FRAMEWORK OF LABOUR LAWS: FUNDAMENTAL RIGHTS AND DIRECTIVE

PRINCIPLES
1. Introduction to the Constitutional Framework
Labour Laws in India
❖ Importance of Labour Laws in Protecting the Welfare of Workers:
✓ Definition and Purpose: Labour laws are a set of legal regulations that govern the
relationship between employers, employees, and trade unions. Their primary purpose is to
ensure the protection of workers' rights, promote fair treatment, and prevent exploitation.
✓ Worker Protection: Labour laws cover various aspects such as working conditions, wages,
hours of work, health and safety, and social security. They provide a legal framework for
addressing issues like child Labour , forced Labour , discrimination, and unfair dismissal.
✓ Economic Stability: By safeguarding workers' rights, Labour laws contribute to economic
stability by promoting fair wages and decent working conditions. This, in turn, enhances
productivity and reduces Labour disputes, which can otherwise disrupt economic activities.
✓ Social Justice: Labour laws play a critical role in achieving social justice by ensuring that the
benefits of economic growth are distributed equitably among all sections of society. They
help reduce income inequality and provide a safety net for vulnerable workers.
✓ International Standards: India's Labour laws are also aligned with international Labour
standards set by organizations such as the International Labour Organization (ILO). These
laws help India fulfil its obligations as a member of the global community, promoting decent
work for all.
❖ The Role of the Constitution as the Supreme Law Providing the Foundation for Labour
Rights:
✓ Supremacy of the Constitution: The Constitution of India is the supreme law of the land,
and all laws, including Labour laws, derive their authority from it. The Constitution lays down
the fundamental principles that guide the formulation and implementation of Labour laws.
✓ Constitutional Provisions: Several provisions in the Constitution directly and indirectly
impact Labour rights. These include Fundamental Rights (Part III), which guarantee
individual rights and freedoms, and Directive Principles of State Policy (Part IV), which guide
the State in promoting social and economic welfare.
✓ Judicial Interpretation: The judiciary plays a crucial role in interpreting the Constitution and
ensuring that Labour laws are consistent with constitutional principles. Through landmark
judgments, the courts have expanded the scope of Labour rights and provided remedies for
violations.
✓ Constitutional Amendments: Over the years, various constitutional amendments have
been made to strengthen Labour rights. For example, the 42nd Amendment Act of 1976
added Article 39A, which mandates the State to provide free legal aid to ensure equal access
to justice, including for workers.
Structure of the Constitution
Overview of the Indian Constitution, Focusing on Fundamental Rights (Part III) and Directive
Principles of State Policy (Part IV):
❖ Fundamental Rights (Part III):

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✓ Scope and Significance: Fundamental Rights are the basic rights guaranteed to every citizen
of India, providing them with the protection and freedom to live with dignity. These rights are
enforceable by the courts, and any violation can be challenged through the judiciary.
✓ Relevant Articles for Labour Rights:
➢ Article 14: Ensures equality before the law and equal protection of the laws, prohibiting
discrimination.
➢ Article 16: Guarantees equality of opportunity in matters of public employment.
➢ Article 19(1)(c): Protects the right to form associations or unions, essential for trade
union activities.
➢ Article 21: Secures the right to life and personal liberty, which has been interpreted to
include the right to livelihood and humane working conditions.
➢ Article 23: Prohibits human trafficking and forced Labour .
➢ Article 24: Prohibits the employment of children below the age of 14 in hazardous
industries.
❖ Directive Principles of State Policy (Part IV):
✓ Nature and Purpose: Directive Principles are guidelines for the State to promote social and
economic welfare, though they are not enforceable by the courts. However, they are
fundamental in the governance of the country and aim to create conditions for a just society.
✓ Relevant Articles for Labour Rights:
➢ Article 38: Mandates the State to secure a social order for the promotion of the welfare
of the people.
➢ Article 39: Directs the State to ensure that citizens have adequate means of livelihood,
equal pay for equal work, and prevent the concentration of wealth.
➢ Article 41: Directs the State to make effective provisions for securing the right to work,
education, and public assistance.
➢ Article 42: Requires the State to make provisions for just and humane conditions of work
and maternity relief.
➢ Article 43: Encourages the State to secure a living wage, decent standard of life, and
social and cultural opportunities for workers.
The Historical Context of Labour Laws in India, Including Pre- and Post-Independence
Developments:
❖ Pre-Independence Era:
✓ Colonial Labour Policies: During British rule, Labour laws were primarily focused on
controlling the Labour force to meet the needs of colonial industries. The emphasis was on
maintaining industrial peace rather than protecting workers' rights.
✓ Early Labour Legislation: Some early Labour laws, like the Factories Act of 1881, were
introduced to regulate working conditions in factories, but these were limited in scope and
poorly enforced.
✓ Rise of Labour Movements: The early 20th century saw the emergence of Labour
movements and trade unions, demanding better working conditions and rights. The All India
Trade Union Congress (AITUC) was established in 1920, marking the beginning of organized
Labour activism in India.

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✓ Royal Commission on Labour (1929-1931): The Royal Commission on Labour, also known
as the Whitley Commission, was set up to investigate Labour conditions in India. Its
recommendations led to significant Labour reforms, including the establishment of Labour
welfare funds and the introduction of minimum wage laws.
❖ Post-Independence Era:
✓ Constitutional Safeguards: After independence, the framers of the Constitution recognized
the importance of Labour rights and incorporated several provisions in the Constitution to
protect and promote these rights.
✓ Industrial Disputes Act (1947): One of the earliest Labour laws passed post-independence,
this Act provided for the investigation and settlement of industrial disputes, the
establishment of Labour courts, and the regulation of strikes and lockouts.
✓ Social Security Legislation: The post-independence period also saw the introduction of
social security laws like the Employees' Provident Funds and Miscellaneous Provisions Act
(1952) and the Employees' State Insurance Act (1948), aimed at providing financial security
to workers.
✓ Labour Reforms: Over the years, various reforms have been introduced to modernize Labour
laws, improve enforcement, and adapt to changing economic conditions. The recent
consolidation of Labour laws into four Labour codes is a significant step in this direction.
2. Fundamental Rights Related to Labour
Article 14 - Right to Equality
❖ Content:
✓ Article 14 of the Indian Constitution guarantees "equality before the law" and "equal
protection of the laws" to every person within the territory of India. This provision embodies
the principle that every individual, regardless of their status, should be treated equally under
the law and should not be subjected to arbitrary discrimination.
❖ Implications:
✓ Non-Discrimination: Article 14 plays a crucial role in prohibiting discrimination in
employment on grounds such as religion, race, caste, sex, or place of birth. This provision
ensures that all individuals have equal opportunities and are not subjected to unjust
treatment in their professional lives.
✓ Equal Pay for Equal Work: The concept of "equal pay for equal work" is inherently linked to
Article 14, ensuring that no employee is discriminated against in terms of wages solely based
on arbitrary classifications such as gender or employment status.
✓ Fairness in Employment Practices: Article 14 mandates fairness in employment practices,
including recruitment, promotion, and termination of employees. Employers are required to
follow non-discriminatory policies, ensuring that all workers are treated with equality and
dignity.
❖ Case Law:
✓ Air India v. Nargesh Meerza (1981):
➢ Background: This case involved a challenge to service conditions that required female
air hostesses to retire upon reaching a certain age, marriage, or the first pregnancy. These
conditions were argued to be discriminatory and violative of Article 14.

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➢ Judgment: The Supreme Court struck down these service conditions, holding that they
were discriminatory and violative of the right to equality under Article 14. The Court
emphasized that service conditions cannot be arbitrary or discriminatory, especially on
the basis of gender.
➢ Significance: The judgment reinforced the importance of gender equality in employment
and set a precedent for challenging discriminatory practices in the workplace.
✓ State of Punjab v. Jagjit Singh (2016):
➢ Background: The case involved temporary workers who were performing the same duties
as permanent workers but were being paid significantly lower wages.
➢ Judgment: The Supreme Court ruled that temporary workers are entitled to the same
wages as permanent workers if they perform similar work. The Court held that denying
equal pay for equal work violates Article 14.
➢ Significance: This case affirmed the principle of equal pay for equal work, ensuring that
employers cannot discriminate against workers based on the nature of their employment
(permanent or temporary).
Article 16 - Equality of Opportunity in Public Employment
❖ Content:
✓ Article 16 guarantees equality of opportunity for all citizens in matters relating to public
employment. It prohibits discrimination on grounds of religion, race, caste, sex, descent,
place of birth, or residence in public sector jobs.
❖ Implications:
✓ Merit-Based Employment: Article 16 ensures that public employment opportunities are
based on merit and qualifications rather than discriminatory criteria. It promotes a level
playing field for all citizens seeking government jobs.
✓ Reservations and Social Justice: While Article 16 emphasizes equality of opportunity, it
also allows for reservations for certain socially and educationally backward classes of
citizens to ensure fair representation in public employment. This is aimed at addressing
historical inequalities and promoting social justice.
❖ Case Law:
✓ Indra Sawhney v. Union of India (1992):
✓ Background: This landmark case, also known as the Mandal Commission case, dealt
with the issue of reservations in public employment for Other Backward Classes (OBCs).
✓ Judgment: The Supreme Court upheld the principle of reservations in public
employment, balancing the right to equality of opportunity with the need for social
justice. The Court also introduced the concept of the "creamy layer," excluding the more
affluent members of OBCs from reservation benefits.
✓ Significance: The judgment clarified the scope of Article 16 and established that
reservations are a constitutionally valid means of promoting equality and social justice
in public employment.
Article 19(1)(c) - Right to Form Associations or Unions
❖ Content:

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✓ Article 19(1)(c) guarantees the right to all citizens to form associations or unions. This right is
crucial for workers as it allows them to form and join trade unions, which are essential for
collective bargaining and the protection of workers' rights.
❖ Implications:
✓ Trade Union Rights: The right to form associations or unions is a cornerstone of Labour
rights, enabling workers to organize themselves, negotiate with employers, and advocate for
better working conditions, wages, and other benefits.
✓ Collective Bargaining: This right supports the concept of collective bargaining, where
workers, through their unions, can negotiate terms of employment, resolve disputes, and
ensure that their voices are heard in the workplace.
✓ Reasonable Restrictions: While Article 19(1)(c) guarantees the right to form unions, it also
permits the State to impose reasonable restrictions in the interests of public order, morality,
and the sovereignty and integrity of India.
❖ Case Law:
✓ All India Bank Employees' Association v. N.I. Tribunal (1961):
✓ Background: This case involved a challenge to certain restrictions imposed on trade
unions under the Industrial Disputes Act.
✓ Judgment: The Supreme Court upheld the right to form associations and unions but
recognized that reasonable restrictions could be imposed to maintain public order. The
Court emphasized that while the right to strike is not an absolute right, it is an integral part
of the right to form unions.
✓ Significance: The judgment affirmed the constitutional protection of trade unions while
acknowledging the State's authority to regulate strikes and other union activities for
maintaining public order.
Article 21 - Right to Life and Personal Liberty
❖ Content:
✓ Article 21 guarantees the right to life and personal liberty, stating that no person shall be
deprived of these rights except according to the procedure established by law. Over the years,
the Supreme Court has expanded the interpretation of Article 21 to include a wide range of
rights essential for living a dignified life.
❖ Implications:
✓ Right to Livelihood: The Supreme Court has interpreted Article 21 to include the right to
livelihood, recognizing that the right to life would be meaningless without the means to live.
This interpretation ensures that workers cannot be deprived of their means of livelihood
arbitrarily or without due process.
✓ Humane Working Conditions: The right to life under Article 21 has been extended to include
the right to humane working conditions. This means that workers have the right to work in an
environment that does not harm their health or dignity.
✓ Protection from Exploitation: Article 21 has also been interpreted to protect workers from
exploitation, ensuring that they are treated with respect and dignity in the workplace.
❖ Case Law:
✓ Olga Tellis v. Bombay Municipal Corporation (1985):

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➢ Background: This case involved pavement dwellers in Mumbai who were threatened with
eviction without any alternative accommodation or means of livelihood.
➢ Judgment: The Supreme Court held that the right to life under Article 21 includes the right
to livelihood. The Court ruled that depriving individuals of their livelihood without
following due process of law would be a violation of Article 21.
➢ Significance: This judgment established the principle that the right to life includes the
right to livelihood, providing legal protection to vulnerable workers and communities.
✓ Bandhua Mukti Morcha v. Union of India (1984):
➢ Background: This case was brought before the Supreme Court by a public interest
litigation (PIL) filed on behalf of bonded Labourers working in inhumane conditions in
stone quarries.
➢ Judgment: The Supreme Court held that the right to life under Article 21 includes the right
to live with dignity, which encompasses the right to be free from exploitation. The Court
directed the government to take immediate steps to release and rehabilitate bonded
Labourers.
➢ Significance: This landmark judgment reinforced the protection of workers' rights under
Article 21, emphasizing the State's responsibility to ensure that workers are not subjected
to exploitation and are provided with the means to live with dignity.
Article 23 - Prohibition of Traffic in Human Beings and Forced Labour
❖ Content:
✓ Article 23 prohibits human trafficking, beggar (forced Labour without payment), and other
forms of forced Labour . This provision is a fundamental right that protects individuals from
being coerced into Labour against their will.
❖ Implications:
✓ Abolition of Bonded Labour: Article 23 plays a crucial role in abolishing bonded Labour ,
where workers are forced to work to repay debts under oppressive conditions. This provision
ensures that no one can be compelled to work under duress or coercion.
✓ Protection from Exploitation: Article 23 protects vulnerable sections of society, such as
economically disadvantaged individuals, from being exploited through forced Labour
practices. It mandates the State to take action against those who engage in trafficking or force
individuals into Labour .
✓ Legal Provisions: The Bonded Labour System (Abolition) Act, 1976, and other related laws
have been enacted to enforce the provisions of Article 23, providing a legal framework to
protect workers from forced Labour and trafficking.
❖ Case Law:
✓ People's Union for Democratic Rights v. Union of India (1982):
➢ Background: This case, also known as the Asiad Workers Case, involved the exploitation
of workers employed in the construction of facilities for the 1982 Asian Games in Delhi.
The workers were not paid minimum wages, and their working conditions were in violation
of Labour laws.
➢ Judgment: The Supreme Court recognized that non-payment of minimum wages
amounted to forced Labour under Article 23. The Court held that even if a worker

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voluntarily accepts employment under conditions that violate Labour laws, it constitutes
forced Labour if the wages paid are below the statutory minimum.
➢ Significance: This judgment expanded the scope of Article 23 to include cases where
workers are paid less than minimum wages, emphasizing the need to protect workers
from economic exploitation.
Article 24 - Prohibition of Child Labour
❖ Content:
✓ Article 24 prohibits the employment of children below the age of 14 in factories, mines, and
other hazardous industries. This provision is aimed at protecting children from exploitation
and ensuring that they are not subjected to dangerous working conditions.
❖ Implications:
✓ Child Protection: Article 24 is a critical provision for the protection of children from
exploitation in the workforce. It ensures that children are not employed in hazardous
industries where their health, safety, and development could be at risk.
✓ Right to Education: The prohibition of child Labour under Article 24 is closely linked to the
right to education, as it seeks to prevent children from being forced into Labour and instead
encourages their participation in schooling.
✓ Legislative Support: The Child Labour (Prohibition and Regulation) Act, 1986, and the Right
of Children to Free and Compulsory Education Act, 2009, are key legislative measures that
support the implementation of Article 24.
❖ Case Law:
✓ M.C. Mehta v. State of Tamil Nadu (1996):
➢ Background: This case was a public interest litigation (PIL) filed to address the issue of
child Labour in hazardous industries, particularly in Sivakasi, Tamil Nadu, known for its
fireworks industry.
➢ Judgment: The Supreme Court directed the State to take immediate measures to
eliminate child Labour , including ensuring compulsory education for all children and
rehabilitating those already employed in hazardous industries. The Court also mandated
the establishment of a Child Labour Rehabilitation-cum-Welfare Fund.
➢ Significance: This landmark judgment reinforced the prohibition of child Labour under
Article 24, emphasizing the State's responsibility to protect children from exploitation
and ensure their right to education and a safe environment.
3. Directive Principles of State Policy Related to Labour
The Directive Principles of State Policy (DPSP), enshrined in Part IV of the Indian Constitution, serve
as guiding principles for the government in framing laws and policies. Though not justiciable (i.e., not
enforceable by courts), these principles are fundamental in the governance of the country and are
designed to ensure social and economic justice. Several DPSPs are directly related to Labour rights,
emphasizing the state's role in promoting the welfare of workers and securing social justice.
Article 39 - Certain Principles of Policy to be Followed by the State
❖ Content:

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✓ Article 39 lays down certain principles that the State must follow in its policies, particularly
concerning the welfare of the workforce. It directs the State to ensure that:
➢ Men and women equally have the right to an adequate means of livelihood.
➢ The health and strength of workers, men and women, and the tender age of children are
not abused.
➢ Citizens are not forced by economic necessity to enter avocations unsuited to their age
or strength.
➢ Equal pay for equal work is ensured for both men and women.
➢ 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.
❖ Implications:
✓ Welfare State: Article 39 lays the foundation for a welfare state, mandating the government
to ensure fair wages, safe working conditions, and the prevention of exploitation. It serves as
the basis for various Labour laws that aim to improve the economic and social conditions of
workers.
✓ Equal Pay for Equal Work: This principle has led to the enactment of laws and policies that
promote gender equality in the workplace, ensuring that women receive the same
remuneration as men for the same work.
✓ Worker Protection: Article 39's emphasis on the health and strength of workers supports
laws related to occupational safety and health, ensuring that workers are not subjected to
hazardous working conditions.
❖ Case Law:
✓ M.R. Balaji v. State of Mysore (1963):
➢ Background: Although this case primarily dealt with reservations in education, it
discussed the importance of DPSPs in guiding state policy.
➢ Judgment: The Supreme Court acknowledged the significance of DPSPs, emphasizing
that they provide important guidelines for the State in making laws and policies, even
though they are not enforceable in a court of law.
➢ Significance: The case highlighted the role of DPSPs in shaping legislative and executive
actions, particularly in the realm of social and economic justice, including Labour
welfare.
Article 41 - Right to Work, to Education, and to Public Assistance in Certain Cases
❖ Content:
✓ Article 41 directs the State to make effective provisions for securing the right to work,
education, and public assistance in cases of unemployment, old age, sickness, and
disablement. This article emphasizes the State's responsibility to provide social security to
its citizens.
❖ Implications:
✓ Social Security: Article 41 serves as the foundation for welfare measures such as
unemployment benefits, old-age pensions, disability benefits, and other forms of public

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assistance. It underlines the State's duty to support individuals who are unable to work due
to circumstances beyond their control.
✓ Right to Work: The right to work, as mentioned in Article 41, has inspired employment
guarantee schemes like the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA), which provides job opportunities to rural workers and ensures that they have a
source of income.
✓ Education as a Fundamental Right: While Article 41 talks about the right to education, it has
been linked to Article 21 (Right to Life) through judicial interpretation, making education a
fundamental right for children.
❖ Case Law:
✓ Unni Krishnan v. State of Andhra Pradesh (1993):
➢ Background: This case dealt with the right to education and the role of the State in
providing it.
➢ Judgment: The Supreme Court linked the right to education to the right to life under
Article 21, stating that the right to education is essential for living a life of dignity. The
Court directed the State to provide free and compulsory education to children up to the
age of 14 years.
➢ Significance: This judgment highlighted the importance of the State's role in providing
essential services, such as education, and reinforced the connection between DPSPs
and fundamental rights, particularly in ensuring social justice and welfare.
Article 42 - Provision for Just and Humane Conditions of Work and Maternity Relief
❖ Content:
✓ Article 42 directs the State to make provisions for securing just and humane conditions of
work and maternity relief. This directive reflects the State's obligation to ensure that workers,
particularly women, are provided with a safe and healthy working environment and are
protected during pregnancy.
❖ Implications:
✓ Worker Welfare: Article 42 forms the basis for laws related to humane working conditions,
such as regulations on working hours, rest periods, and workplace safety. It underscores the
State's duty to protect workers from exploitation and ensure their well-being.
✓ Maternity Benefits: This article has led to the enactment of laws like the Maternity Benefit
Act, 1961, which provides for paid maternity leave, nursing breaks, and job security for
women workers during pregnancy and post-childbirth. It ensures that women are not
discriminated against in the workplace due to their reproductive role.
✓ Occupational Health and Safety: Article 42 also supports the development of policies
aimed at improving occupational health and safety standards, ensuring that workplaces are
free from hazards that could harm workers' health.
❖ Case Law:
✓ Vishaka v. State of Rajasthan (1997):
➢ Background: This landmark case dealt with the issue of sexual harassment of women at
the workplace.

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➢ Judgment: The Supreme Court laid down guidelines for the prevention of sexual
harassment at the workplace, emphasizing the need for a safe and dignified working
environment for women. These guidelines, known as the Vishaka Guidelines, were later
codified into law through the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
➢ Significance: The judgment underscored the importance of humane working conditions,
as mandated by Article 42, and established the legal framework for protecting women
from harassment and ensuring their dignity at work.
Article 43 - Living Wage, etc., for Workers
❖ Content:
✓ Article 43 directs the State to endeavor to secure, by suitable legislation or economic
organization, a living wage, conditions of work ensuring a decent standard of life, and full
enjoyment of leisure and social and cultural opportunities for all workers.
❖ Implications:
✓ Economic Justice: Article 43 is fundamental in promoting economic justice for workers. It
emphasizes the need for legislation that guarantees a living wage—an income sufficient to
provide for the basic needs of life, including food, shelter, clothing, healthcare, and
education. This article supports the enactment of minimum wage laws and other Labour
welfare measures.
✓ Workers' Welfare Schemes: The principle of a living wage has led to the formulation of
various workers' welfare schemes, including social security benefits, housing schemes, and
insurance for workers in unorganized sectors. These initiatives aim to improve the quality of
life for workers and ensure their economic security.
✓ Decent Standard of Life: Article 43 also advocates for conditions of work that enable
workers to lead a life of dignity and enjoy leisure and social and cultural opportunities. It
encourages the State to create an environment where workers are not merely surviving but
thriving.
❖ Case Law:
✓ Chandra Bhawan Boarding & Lodging v. State of Mysore (1969):
➢ Background: This case challenged the constitutionality of the Minimum Wages Act,
1948, which was enacted to ensure that workers receive a minimum standard of wages.
➢ Judgment: The Supreme Court upheld the Minimum Wages Act, recognizing the State's
responsibility to secure a living wage for workers. The Court held that the State has the
power to fix minimum wages to ensure that workers are not exploited and that they
receive adequate compensation for their Labour .
➢ Significance: The judgment reinforced the importance of Article 43 in promoting
economic justice and highlighted the role of the State in protecting workers' rights
through legislation.
4. Landmark Case Law on Labour Rights
Landmark cases in Indian judicial history have significantly shaped the landscape of Labour rights,
ensuring that the principles of justice, equality, and dignity are upheld in the workplace. These cases
have not only interpreted the Constitution in ways that protect workers but also set important
precedents that continue to influence Labour laws and policies.

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Randhir Singh v. Union of India (1982)

❖ Facts:
✓ Randhir Singh, a driver employed by the Delhi Police, filed a petition claiming that his work
was identical to that of drivers in other services like the Central Government and Municipal
Corporation, yet he was paid less. He argued for the principle of "equal pay for equal work,"
asserting that his duties, responsibilities, and the nature of work were the same as those who
were receiving higher wages in other government services.
❖ Judgment:
✓ The Supreme Court ruled in favour of Randhir Singh, holding that "equal pay for equal work"
is not merely a slogan but a constitutional right. The Court interpreted this right as being
derived from Articles 14 (Right to Equality) and 16 (Equality of Opportunity in Public
Employment) of the Indian Constitution, read in conjunction with Article 39(d) of the Directive
Principles of State Policy, which explicitly mandates equal pay for equal work for both men
and women.
❖ Significance:
✓ This judgment significantly strengthened the principle of "equal pay for equal work," making
it a cornerstone of Labour rights in India. The ruling ensured that this principle was not limited
to a moral obligation but was enforceable as a legal right. It also led to its broader application
across various sectors, influencing wage structures and employment practices in both the
public and private sectors. The case set a precedent for subsequent rulings related to wage
parity and worker rights.
Bandhua Mukti Morcha v. Union of India (1984)
❖ Facts:
✓ This case was a Public Interest Litigation (PIL) filed by the organization Bandhua Mukti Morcha
(Bonded Labour Liberation Front), which highlighted the inhumane conditions and
exploitation faced by bonded Labourers in the stone quarries of Haryana. Bonded Labour ,
where individuals are forced to work to repay debts under conditions of servitude, was
rampant despite being abolished by law.
❖ Judgment:
✓ The Supreme Court took a broad view of the fundamental rights guaranteed under the
Constitution, particularly Article 21 (Right to Life). The Court held that the right to life includes
the right to live with dignity, free from exploitation, and that bonded Labour violates these
fundamental rights. The Court issued several directives to the government to identify,
release, and rehabilitate bonded Labourers and to ensure that such practices were
eradicated.
❖ Significance:
✓ This case expanded the interpretation of the right to life to include the right to live with dignity,
setting a powerful precedent for human rights in India. It paved the way for the abolition of
bonded Labour and underscored the judiciary's role in enforcing social justice, particularly
for marginalized and vulnerable groups. The case also highlighted the importance of PILs as
a tool for social change and justice.

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People's Union for Democratic Rights v. Union of India (1982)

❖ Facts:
✓ The People's Union for Democratic Rights (PUDR) filed a PIL concerning the exploitation of
workers employed in the construction of infrastructure for the 1982 Asian Games in Delhi.
The workers were paid below the minimum wage, subjected to poor working conditions, and
denied basic rights under Labour laws.
❖ Judgment:
✓ The Supreme Court held that non-payment of minimum wages constituted "forced Labour "
under Article 23 of the Constitution, which prohibits traffic in human beings and forced
Labour . The Court ruled that any payment below the minimum wage amounts to forced
Labour , as it compels the workers to work under conditions that are exploitative and violate
their basic rights.
❖ Significance:
✓ This judgment reinforced the state's obligation to ensure fair wages and prevent exploitation.
It also broadened the scope of Article 23, recognizing that forced Labour can occur even
when there is nominal consent if the conditions of work are exploitative. The ruling had far-
reaching implications for Labour rights, particularly for informal and unorganized sector
workers, ensuring that they receive at least the minimum wage mandated by law.
M.C. Mehta v. State of Tamil Nadu (1996)
❖ Facts:
✓ This case focused on the issue of child Labour in the Sivakasi fireworks industry, where
children were employed in hazardous conditions. The case was brought to the Supreme
Court by environmental activist M.C. Mehta, who sought the Court's intervention to protect
the rights of children working in such dangerous industries.
❖ Judgment:
✓ The Supreme Court issued several directives to the government, including the immediate
identification and withdrawal of children working in hazardous industries, provision of
compulsory education for these children, and rehabilitation of their families. The Court
emphasized the need to implement laws like the Child Labour (Prohibition and Regulation)
Act, 1986, and directed the creation of welfare funds for the affected children.
❖ Significance:
✓ This judgment strengthened efforts to protect children from hazardous work and emphasized
the importance of education as a tool for their upliftment. It led to stricter enforcement of
child Labour laws and increased awareness about the dangers of child Labour . The case also
highlighted the role of the judiciary in safeguarding the rights of vulnerable groups and
ensuring that constitutional and legal protections are effectively implemented.
5. Interplay Between Fundamental Rights and Directive Principles
The Indian Constitution envisages a harmonious relationship between Fundamental Rights (Part III)
and Directive Principles of State Policy (Part IV). While Fundamental Rights are enforceable by the
courts, Directive Principles are non-justiciable, intended to guide the State in policy-making.
However, the judiciary has played a crucial role in interpreting and harmonizing these provisions to
protect Labour rights.

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Judicial Interpretation:
❖ Case Law:
✓ Minerva Mills v. Union of India (1980):
➢ Background: The case challenged the constitutionality of the 42nd Amendment, which
attempted to give primacy to Directive Principles over Fundamental Rights.
➢ Judgment: The Supreme Court held that the Indian Constitution is founded on the
balance between Fundamental Rights and Directive Principles, stating that they are
complementary and not mutually exclusive. The Court ruled that while Directive
Principles are fundamental in the governance of the country, they cannot override
Fundamental Rights.
➢ Significance: This case reinforced the idea that Fundamental Rights and Directive
Principles must be harmonized to achieve social and economic justice, ensuring that the
State's policies do not violate individual rights.
✓ Kesavananda Bharati v. State of Kerala (1973):
➢ Background: This landmark case established the doctrine of the basic structure of the
Constitution, limiting Parliament's power to amend the Constitution in a way that could
alter its basic features.
➢ Judgment: The Supreme Court ruled that while Directive Principles are essential to
governance, they cannot be used to override Fundamental Rights. However, the Court
acknowledged that Directive Principles could guide the interpretation of Fundamental
Rights, ensuring that the Constitution's social justice goals are achieved without
infringing on individual liberties.
➢ Significance: The judgment ensured that the Directive Principles play a crucial role in
shaping laws and policies, while Fundamental Rights remain inviolable, thereby
protecting individual freedoms while promoting social welfare.
Role of Judiciary:
❖ The judiciary has been instrumental in expanding the scope of Labour rights through creative
interpretation of the Constitution. By harmonizing Fundamental Rights and Directive Principles,
the courts have ensured that Labour rights are protected, and social justice is advanced. The
judiciary's proactive role in interpreting these provisions has led to significant advancements in
Labour law jurisprudence, often stepping in to protect the rights of workers when legislative
measures have fallen short.
Balancing Rights:
❖ The courts have faced the challenge of balancing economic growth with the protection of Labour
rights. While the State's interest in promoting industrialization and economic development is
recognized, the judiciary has consistently upheld the need to protect workers' rights, ensuring
that economic progress does not come at the cost of social justice. This balancing act is evident
in cases where the courts have enforced minimum wage laws, regulated working conditions, and
protected the rights of vulnerable workers, all while considering the broader economic context.
6. Current Trends and Challenges in Labour Rights
The landscape of Labour rights in India continues to evolve, influenced by recent legislative
developments, economic changes, and the ongoing challenges posed by globalization, the informal

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sector, and the gig economy. The COVID-19 pandemic has further highlighted the vulnerabilities in
the Labour market, particularly for informal and migrant workers.
Recent Legislative Developments:
❖ Labour Code on Industrial Relations (2020):
✓ Content:
➢ This Code consolidates laws related to trade unions, conditions of employment in
industrial establishments, and the investigation and settlement of industrial disputes.
✓ Implications:
➢ Ease of Doing Business: The Code aims to simplify compliance for businesses,
streamlining the regulatory framework. However, there are concerns that these changes
might dilute workers' rights, particularly regarding job security and collective bargaining.
➢ Flexibility in Employment: The introduction of provisions like fixed-term employment is
intended to provide flexibility to employers, but it has faced criticism for potentially
undermining job security, especially in sectors prone to layoffs and short-term contracts.
❖ Labour Code on Social Security (2020):
✓ Content:
➢ This Code merges nine laws related to social security, including the Employees’ Provident
Fund, Employees’ State Insurance, and maternity benefits.
✓ Implications:
➢ Universal Coverage: By including gig and platform workers, this Code seeks to broaden
the reach of social security, ensuring that a larger portion of the workforce benefits from
social protections such as pensions, insurance, and maternity benefits. This is a
significant move towards inclusivity, recognizing the changing nature of work in the digital
age.
➢ Implementation Challenges: Despite its broad scope, the effective implementation of
the Social Security Code poses challenges. These include ensuring compliance from
employers, particularly in the informal sector, and addressing issues related to the
portability of benefits for migrant workers. There are also concerns about whether the
administrative mechanisms will be robust enough to handle the increased coverage.
❖ Labour Code on Occupational Safety, Health, and Working Conditions (2020):
✓ Content:
➢ This Code consolidates and updates laws governing occupational safety, health, and
working conditions across various sectors, including factories, mines, and plantations.
✓ Implications:
➢ Enhanced Worker Safety: The Code aims to improve safety standards in workplaces,
particularly in hazardous industries. It introduces measures like mandatory health
checks and safety committees in larger establishments, which could lead to better
working conditions and reduced workplace accidents.
➢ Criticism: However, there are concerns that the Code may reduce the frequency of
inspections and weaken enforcement, potentially compromising worker safety. Critics
argue that the emphasis on self-certification by employers might lead to a lack of
accountability, particularly in sectors with a history of safety violations.

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Challenges in Labour Rights:

❖ Informal Sector Workers:
✓ Issue: A significant proportion of India’s workforce—estimated to be over 80%—is employed
in the informal sector. These workers often lack legal protection, access to social security
benefits, and safe working conditions.
✓ Policy Gaps: Despite constitutional guarantees and the existence of Labour laws, informal
workers frequently face exploitation, low wages, and hazardous working conditions. The
challenge lies in extending legal protections and social security benefits to this vast and
diverse segment of the workforce, many of whom work in small-scale, unregulated industries
or as self-employed individuals.

Informal sector workers are individuals engaged in economic activities that are not regulated by the
government and are often outside formal Labour laws and protections. This sector is characterized
by unregistered or unincorporated businesses, making it difficult for governments to track, regulate,
or tax these activities.
Key characteristics of informal sector workers include:
1. Lack of Job Security: Informal workers typically do not have formal contracts or guaranteed job
tenure.
2. No Social Benefits: They often lack access to health insurance, paid leave, retirement benefits,
or other employee protections.
3. Low Wages: Informal sector workers are often paid low wages, sometimes below minimum
wage, with little to no legal recourse for demanding fair pay.
4. Unregulated Working Conditions: Their workplaces are typically not regulated by safety
standards, leading to potentially unsafe or unhealthy working environments.
5. Self-employment and Small Enterprises: Many informal sector workers are self-employed or
work in small, family-run enterprises.
6. Cash-Based Payments: Transactions are usually made in cash without formal documentation
or records.
Examples of informal sector workers include street vendors, domestic workers, agricultural laborers,
construction workers, and small-scale traders. While the informal sector provides income
opportunities for many, especially in developing countries, it often comes with vulnerability to
exploitation and lack of legal protection.
❖ Gig Economy and Platform Workers:
✓ Issue: The rapid growth of the gig economy has created a new class of workers—often
referred to as independent contractors—who are typically excluded from traditional Labour
rights and protections.
Legal Ambiguity: The classification of gig workers as independent contractors rather than
employees limits their access to social security benefits and protections under existing Labour laws.
This has led to debates over their rights and the responsibilities of platform companies. Platform
workers are individuals who provide services through digital platforms or apps that act as
intermediaries between the worker and the consumer. These platforms, often referred to as "on-
demand platforms" or "gig platforms," facilitate the connection between workers and customers,
allowing workers to perform tasks or provide services when needed.

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Key features of platform workers include:

1. Technology-Driven Work: Platform workers use digital platforms (such as mobile apps or
websites) to find and complete tasks. Examples include Uber, Ola (for ride-hailing), Swiggy,
Zomato (for food delivery), and Fiverr or Upwork (for freelancing).
2. Flexibility: Workers can typically choose when, where, and how much they work, allowing for a
flexible schedule. This flexibility appeals to many as it enables them to work part-time or balance
other commitments.
3. Independent Contractor Status: Platform workers are usually classified as independent
contractors rather than employees. This means they do not receive traditional benefits like health
insurance, paid leave, or job security, and are responsible for managing their own taxes and
expenses.
4. Task-Based Work: These workers are paid per task or service provided, rather than earning a
fixed salary. For example, a ride-hailing driver is paid for each completed trip, and a food delivery
worker is paid for each delivery.
5. Varying Skill Levels: Platform work ranges from low-skilled tasks (e.g., driving, delivery) to high-
skilled freelance work (e.g., graphic design, software development).
6. No Employer-Employee Relationship: Platform companies act as intermediaries between
workers and customers, which often leads to a lack of employer liability and protections for the
workers.
Platform work is an essential component of the growing gig economy, but it also raises issues related
to workers' rights, social protection, and legal frameworks, as platform workers often fall outside
traditional Labour regulations.
Gig workers are individuals who engage in short-term, freelance, or contract-based jobs, often
referred to as "gigs." These workers typically find and perform tasks or services through digital
platforms or apps, such as ride-hailing services (e.g., Uber, Lyft), food delivery (e.g., Zomato,
DoorDash), freelance marketplaces (e.g., Fiverr, Upwork), or other on-demand services.
Gig workers are distinct from traditional employees in that they usually don't have long-term
contracts, fixed working hours, or benefits such as health insurance or paid leave. Instead, they are
often classified as independent contractors, meaning they are responsible for managing their own
taxes, insurance, and other work-related expenses.
Key characteristics of gig workers include:
1. Flexibility: They can choose when and how much they want to work.
2. Task-oriented: Their work is based on completing specific tasks or projects.
3. Platform-based: Many find work through digital apps or platforms.
4. No job security or benefits: Gig workers typically don't receive traditional employee benefits.
This type of work is part of the growing "gig economy," where temporary and flexible jobs are
increasingly common.

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Here is a table highlighting the key differences between gig workers, platform workers,
and informal sector workers:

Aspect Gig Workers Platform Workers Informal Sector

Workers

Definition Workers who engage in Workers who provide Workers engaged in

short-term, freelance, or services via digital unregulated,
temporary jobs platforms or apps unregistered economic
activities

Work Type Task-based, freelance, Task-based, facilitated by Unregulated, informal

contract work a digital platform jobs, often manual or
small-scale trades

Use of May or may not rely on Strongly reliant on Generally not reliant on
Technology technology technology (mobile apps, digital technology or
websites) platforms

Examples of Freelancers, ride-hailing Ride-hailing drivers, food Street vendors,

Jobs drivers, project-based delivery workers, online domestic workers,
consultants freelancers construction laborers

Employer Independent Independent contractors, Often self-employed or

Relationship contractors, usually not connected via a platform work for unregistered
employees small businesses

Flexibility High flexibility in terms High flexibility but Limited flexibility, often
of work hours and dependent on platform dictated by the nature
locations availability of informal jobs

Social Typically no access to No formal employee No access to formal

Protections social benefits like benefits (health, social protections or
health insurance retirement, paid leave) benefits

Legal Not always covered by Generally fall outside Outside formal Labour
Framework formal Labour laws, formal Labour laws laws, often unregulated
depending on country by the government

Payment Based on specific tasks Based on completed Cash-based payments,

Mode or projects completed tasks via the platform usually undocumented
(e.g., per ride or delivery)

Regulation Partially regulated in Subject to platform Typically unregulated by

some countries policies, minimal the government
government regulation

Relating gig workers, platform workers, and informal sector workers to the Constitution of
India involves examining the rights, protections, and principles laid down in the Constitution that can
impact these workers. Here are the key ways these workers can be connected to constitutional
provisions:

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1. Right to Equality (Article 14)

❖ Gig Workers & Platform Workers: These workers can invoke Article 14 to seek protection
against discrimination and unfair treatment by platforms or employers. They can challenge any
discriminatory practices in pay, working conditions, or employment terms.
❖ Informal Sector Workers: Informal workers, who often face exclusion from legal protections,
can claim the right to equal treatment under the law. This article advocates for non-
discriminatory policies for all workers, whether in the formal or informal sector.
2. Right to Livelihood (Article 21)
❖ Gig Workers & Platform Workers: The Supreme Court of India has interpreted the right to life
under Article 21 to include the right to livelihood. Gig and platform workers can argue that
arbitrary termination from platforms, unfair pay, or lack of safety at work threatens their
livelihood.
❖ Informal Sector Workers: Informal workers, often lacking legal contracts or protections, may
use Article 21 to demand basic working conditions and minimum wages, ensuring a dignified life
and means of livelihood.
3. Directive Principles of State Policy (Part IV)
❖ Article 39: Ensures that the state's policies should be directed towards securing the right to an
adequate means of livelihood and the protection of workers. These provisions aim at promoting
social and economic welfare for workers, including gig, platform, and informal workers.
✓ Gig Workers & Platform Workers: The state is encouraged to create laws that ensure fair pay
and safe working conditions for platform workers, recognizing their role in the economy.
✓ Informal Sector Workers: The Directive Principles emphasize the state's responsibility to
extend Labour protections, social security, and welfare measures to workers in the informal
sector.
❖ Article 43: This mandates that the state ensures a living wage, decent working conditions, and a
decent standard of life for all workers.
✓ Gig Workers & Platform Workers: Workers could argue for regulations that ensure minimum
wages, better working hours, and welfare benefits, in line with these principles.
✓ Informal Sector Workers: The informal workforce, which often lacks minimum wage
standards and safe working conditions, can use this principle to demand legislative
interventions.
4. Right Against Exploitation (Article 23)
❖ Gig Workers & Platform Workers: These workers may face exploitative practices like excessive
work hours, low wages, and unfair treatment by the platforms. Article 23 prohibits forced Labour
and exploitation, and it can be invoked to protect against such practices.
❖ Informal Sector Workers: Many informal sector workers are vulnerable to forced labor, human
trafficking, and exploitation due to the unregulated nature of their work. Article 23 protects them
from such exploitation.
5. Right to Form Unions (Article 19(1)(c))
❖ Gig Workers & Platform Workers: These workers can form unions or associations to represent
their interests, fight for better wages, working conditions, and policies. The right to form
associations under Article 19 allows them to organize and collectively bargain.

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❖ Informal Sector Workers: Informal workers can also organize under this article to demand
recognition, legal rights, and protection from exploitation.
6. Social Security (Directive Principles of State Policy, Article 41 & Article 42)
❖ Gig Workers & Platform Workers: The Directive Principles in Articles 41 and 42 guide the state
to provide public assistance in cases of unemployment, sickness, old age, and disablement. Gig
and platform workers, who often lack access to social security benefits, can demand policies
that extend these protections.
❖ Informal Sector Workers: As informal workers lack formal job security, these provisions suggest
that the state should extend social security measures to cover the informal economy, ensuring
support in cases of illness, maternity, and unemployment.
7. Minimum Wages Act and Fundamental Rights (Articles 14, 19, 21)
❖ Gig Workers & Platform Workers: These workers often face issues related to low and unstable
income. Article 21 can be invoked to argue for a minimum wage that guarantees a dignified life.
While the Minimum Wages Act governs formal employment, gig and platform workers can push
for the extension of such laws to include their employment conditions.
❖ Informal Sector Workers: Most informal workers are paid below minimum wage
standards. Articles 14 and 21support their claim for fair wages and protection against arbitrary
deprivation of their right to livelihood.
8. Occupational Safety and Health (Article 42)
❖ Gig Workers & Platform Workers: Workers often lack safety protections, especially during tasks
such as delivery or ride-hailing. Article 42, which emphasizes just and humane working
conditions, can be used to argue for better safety regulations and health standards.
❖ Informal Sector Workers: Many informal workers, such as construction laborers, work in
hazardous conditions. The state’s responsibility under Article 42 is to ensure safe and humane
working conditions, extending occupational safety laws to protect them.
9. Judicial Interpretations and Emerging Labour Rights
❖ Recent judicial interpretations by Indian courts are leaning towards recognizing gig workers and
platform workers as deserving legal protections akin to employees, including benefits and
welfare schemes. The courts have upheld constitutional rights to fair treatment, non-
exploitation, and social security for these workers, which could pave the way for future Labour
law reforms.
CASE LAWS:
Several Indian case laws and ongoing legal battles have touched upon the rights and issues
concerning gig workers, platform workers, and informal sector workers. Though many cases
focus on broader Labour rights and protections, the emerging landscape has begun addressing the
specific challenges faced by these groups.
1. Gig Workers and Platform Workers
Shiv Shankar & Ors. v. Union of India (2021)
❖ Context: This Public Interest Litigation (PIL) was filed by delivery workers from platforms like
Swiggy and Zomato, seeking classification as "workers" under Labour laws to access social
security benefits.

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❖ Key Issues: The petition raised concerns about gig workers’ classification as independent
contractors rather than employees, depriving them of benefits such as health insurance,
minimum wage, and provident funds.
❖ Court's Observation: The case highlighted the need for a legal framework that defines gig and
platform workers’ status. The Supreme Court of India has acknowledged the gig economy's role
and stressed that governments must enact regulations to protect workers' rights in the platform
economy.
Indian Federation of App-based Transport Workers (IFAT) v. Union of India (2021)
❖ Context: A PIL was filed in the Supreme Court by the Indian Federation of App-based Transport
Workers, representing Uber and Ola drivers. The petition sought social security benefits under
the Unorganized Workers’ Social Security Act, 2008.
❖ Key Issues: The petitioners argued that they should be classified as workers entitled to
protections under Labour laws and social security benefits, particularly during the COVID-19
pandemic, when many lost their livelihoods.
❖ Court's Response: The case brought attention to the legal ambiguity of gig workers' status and
highlighted that platform workers, such as drivers, should be extended benefits under laws
governing unorganized workers. The case is still ongoing and represents a significant step in
addressing gig workers’ legal rights.
Delivery Workers’ Protests (Swiggy, Zomato)
❖ Context: Several protests and legal actions have been undertaken by platform workers (e.g.,
Swiggy and Zomato delivery workers) across various Indian cities. Workers demanded better pay,
work conditions, safety provisions, and social security benefits.
❖ Key Issue: The legal recognition of these workers as "employees" has been a critical demand,
with workers asserting that they face exploitation due to low pay, long hours, and lack of benefits.
❖ Outcome: These protests have led to greater public discourse around the issue, though judicial
decisions and government action remain pending in many cases.
Case Law:
UK Supreme Court Judgment on Uber Drivers (2021): Although not an Indian case, the UK Supreme
Court ruled that Uber drivers are workers entitled to minimum wage, holiday pay, and other rights.
This landmark ruling has global implications and has sparked discussions on the need for similar
protections in India. Indian courts and policymakers are beginning to grapple with these issues, as
the gig economy continues to grow.

2. Informal Sector Workers

People's Union for Democratic Rights v. Union of India (1982) (Asiad Workers Case)
❖ Context: This case involved the exploitation of informal construction workers during the 1982
Asian Games in New Delhi, where they were paid below the minimum wage and worked in
hazardous conditions.
❖ Key Issues: The case revolved around the enforcement of Article 23 of the Constitution
(prohibition of forced labor) and the Minimum Wages Act, 1948. It focused on the exploitation
of informal workers and the denial of their basic rights.

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❖ Supreme Court Judgment: The Supreme Court of India held that non-payment of minimum
wages amounts to forced labor, which is prohibited under Article 23. This landmark ruling
recognized that informal sector workers are entitled to legal protections, even if not under formal
employment contracts.
National Campaign Committee for Central Legislation on Construction Labour v. Union of
India (2016)
❖ Context: This PIL sought the proper implementation of laws and welfare measures for
construction workers, a large part of the informal Labour sector.
❖ Key Issue: The petition argued that informal workers were not receiving benefits due under
the Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996 and the associated welfare schemes.
❖ Outcome: The Supreme Court issued several directives for better implementation of welfare
laws and social security benefits for informal sector workers, such as registration for workers,
ensuring minimum wages, and providing health and safety protections.
Olga Tellis v. Bombay Municipal Corporation (1985)
❖ Context: The case was brought by informal workers, including street vendors and slum dwellers,
against eviction by the Bombay Municipal Corporation. The issue revolved around the violation
of their right to livelihood.
❖ Key Issues: The petitioners argued that their right to life under Article 21 of the Constitution
includes the right to livelihood, as they depended on informal work for their survival.
❖ Supreme Court Judgment: The Court upheld that the right to life includes the right to
livelihood and that informal workers should not be evicted without providing them alternative
employment or rehabilitation, recognizing the vital role of informal Labour in sustaining
livelihoods.
Bandhua Mukti Morcha v. Union of India (1984)
• Context: This case concerned the exploitation of bonded laborers in the stone quarries in
Haryana, who were working in extreme conditions with little pay.
• Key Issues: The Court had to decide whether bonded Labour (a form of forced labor) and the
exploitation of informal workers violated their fundamental rights.
• Outcome: The Supreme Court ruled in favor of the workers, reinforcing the prohibition of
forced Labour under Article 23 and emphasizing that informal workers are entitled to protection
against exploitation.

Recent Developments and Ongoing Cases

Social Security Code, 2020
The Social Security Code, 2020, introduced by the Indian government, aims to bring gig workers,
platform workers, and informal workers under a social security framework. This code includes
provisions for health insurance, maternity benefits, and pensions. However, the effective
implementation of this code and its scope is still a matter of legal and policy debate.

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Gig Workers’ Rights under Labour Codes

The inclusion of gig and platform workers in Labour codes like the Code on Social Security, 2020 is
an ongoing legal battle. The law aims to recognize gig workers as a distinct category and extend social
security benefits like provident funds, but the extent of implementation and coverage remains under
legal scrutiny.
❖ Globalization and Labour Rights:
✓ Issue: Globalization has increased competition, leading to downward pressure on wages
and working conditions in certain sectors, particularly those involved in export-oriented
industries.
✓ Balancing Act: The challenge lies in balancing the need for economic competitiveness with
the protection of Labour rights. In many cases, workers in developing countries face poor
working conditions and low wages as companies seek to minimize costs and maximize
profits in a globalized economy. This has led to calls for stronger Labour standards and fair
trade practices to ensure that workers are not exploited in the pursuit of economic growth.
❖ Implementation of Labour Laws:
✓ Issue: The enforcement of Labour laws in India remains weak, with significant gaps between
legislation and actual practice. This is particularly evident in the informal sector, where
violations of minimum wage laws, unsafe working conditions, and other forms of exploitation
are common.
✓ Judicial Intervention: Courts have often stepped in to address violations of Labour rights,
but reliance on litigation for enforcement is not always sustainable. Systemic issues such as
corruption, lack of resources, and inadequate training of Labour inspectors contribute to the
weak enforcement of Labour laws.
✓ Case Law:
➢ PUCL v. Union of India (2001): This case highlighted the issue of starvation deaths
among workers, particularly in rural areas, leading to judicial intervention to ensure the
right to food and livelihood. The Court’s directives in this case underscored the
importance of government accountability in implementing social welfare schemes.
Impact of COVID-19 on Labour Rights:
❖ Job Losses and Migrant Workers:
✓ Issue: The COVID-19 pandemic led to unprecedented job losses, particularly among
informal and migrant workers. The sudden lockdown in 2020 left millions of migrant workers
stranded without income, shelter, or access to basic necessities.
✓ Government Response: The government introduced several relief measures, including
direct cash transfers, free food distribution, and employment schemes like the Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA). However, the
implementation of these measures faced significant challenges, including bureaucratic
delays, lack of coordination, and difficulties in reaching the most vulnerable populations.
✓ Long-Term Impact: The pandemic exposed the vulnerabilities in India’s Labour market,
particularly the lack of social security for informal workers and the precarious nature of
employment in many sectors. It has led to calls for stronger social safety nets, better urban
planning for migrant workers, and more inclusive Labour policies.
❖ Workplace Safety and Health:

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✓ Issue: The pandemic underscored the importance of occupational safety and health,
particularly for frontline workers in essential services, healthcare, and industries that
continued operations during lockdowns.
✓ Policy Reforms: The crisis has highlighted the need for stronger safety nets and health
protections for all workers, including those in the informal sector. There is an increasing
recognition of the importance of mental health, workplace sanitation, and access to
healthcare as integral components of worker welfare.
✓ Future Outlook: The experience of the pandemic is likely to drive long-term changes in
Labour policy, with a greater emphasis on workplace safety, social security, and health
protections. Companies and governments may adopt more flexible work arrangements,
improve health and safety standards, and expand social security coverage to mitigate the
impact of future crises.

Migrant workers are individuals who move from one region, state, or country to another in search of
employment. They typically relocate due to economic opportunities, better wages, or improved living
conditions not available in their home region. Migrant workers can be categorized into domestic
migrants (who move within the same country) and international migrants (who move to a different
country).
Key characteristics of migrant workers:
1. Temporary or Seasonal Employment: Many migrant workers are employed in temporary or
seasonal jobs, especially in sectors like agriculture, construction, manufacturing, or domestic
work.
2. Economic Drivers: Economic hardship, lack of employment opportunities, or poverty often
motivate people to become migrant workers. In some cases, political instability or conflict in
their home country or region may also drive migration.
3. Legal and Social Challenges: Migrant workers may face various challenges, such as language
barriers, lack of legal documentation, exploitation by employers, unsafe working conditions, and
limited access to social services.
4. Remittances: Migrant workers often send part of their earnings back home, which is crucial for
the economic survival of their families and contributes to the economy of their home region or
country.
Case Law Related to Migrant Workers:
A significant case related to migrant workers in India is Bandhua Mukti Morcha v. Union of India
(1984). In this case, the Supreme Court addressed the issue of bonded labour and the exploitation of
migrant workers. The court recognized that many migrant workers were being forced into harsh
labour conditions without adequate wages, which violated their fundamental rights under the
Constitution, particularly Articles 14 (Right to Equality), 21 (Right to Life), and 23 (Prohibition of
Forced Labour). The court directed the government to take appropriate measures to ensure the rights
and welfare of migrant and bonded laborers.
Constitutional Provisions and Migrant Workers:
The Indian Constitution provides several protections for migrant workers under its framework. Article
14 guarantees equality before the law, ensuring that all workers, including migrants, are treated
equally without discrimination. Article 19(1)(d) safeguards the right to move freely throughout India,

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which is critical for migrant workers seeking employment in different regions. Additionally, Article
21 protects the right to life and dignity, requiring the state to ensure that migrant workers are not
subjected to inhumane working conditions. Moreover, Article 23 prohibits forced labour, ensuring
that no worker, including migrants, can be exploited through bonded labour practices.
Conclusion:
The Constitution of India provides a strong foundation for ensuring the rights and protections of gig
workers, platform workers, and informal sector workers. While many of these workers fall outside
traditional Labour laws, constitutional provisions offer them avenues to demand equality, fair
treatment, social security, and dignified working conditions. Future legal reforms could further align
Labour policies with constitutional principles, ensuring a fairer and more inclusive Labour
framework. While cases related specifically to gig and platform workers are still evolving, informal
sector workers have been a part of significant legal battles in Indian courts for decades. The
Constitution, various Labour laws, and landmark judgments have paved the way for recognizing the
rights of these workers, although gig and platform workers are only now gaining recognition in the
legal landscape. Cases like Shiv Shankar v. Union of India and Indian Federation of App-based
Transport Workers v. Union of India are key in shaping future legal frameworks for these workers'
rights.

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THE INDUSTRIAL DISPUTES ACT, 1947: DEFINITIONS AND KEY PROVISIONS

The Industrial Disputes Act, 1947 was formulated to prevent and settle industrial disputes,
ensuring harmony and smooth functioning in the workplace. It lays down procedures for the
resolution of conflicts and seeks to maintain industrial peace while protecting the rights of workers.
The Act has a wide scope and applies to almost all industries in India, with certain exceptions like
the armed forces. This chapter will discuss the objectives, key definitions, provisions, and critical
case laws associated with the Act, focusing on its real-world applications and interpretations by the
judiciary.
Objectives of the Industrial Disputes Act, 1947:
The core aims of the Act include:
1. Promotion of industrial peace and productivity: The Act helps prevent conflicts that can
disrupt work in industries, thereby aiding the growth and stability of industries.
2. Equitable resolution of disputes: It ensures that conflicts between employers and employees
are resolved in a fair and just manner, keeping the interests of both sides in mind.
3. Promotion of social justice: The Act ensures that workers' rights are protected, preventing
exploitation and safeguarding the dignity of labour.
4. Prevention of illegal strikes and lockouts: By regulating the conditions under which strikes and
lockouts can occur, it seeks to prevent unnecessary disruptions.
5. Provision for effective dispute resolution mechanisms: Through conciliation, arbitration, and
adjudication, the Act provides mechanisms to resolve disputes peacefully and effectively.
Definitions under the Industrial Disputes Act, 1947
1. Industry (Section 2(j)):
The Act broadly defines an "industry" to include any systematic activity carried out with the
cooperation of employers and employees for the production or distribution of goods or services. This
includes activities in both the organized and unorganized sectors.
The definition of "industry" is comprehensive, and post the judgment in Bangalore Water Supply v.
A. Rajappa (1978), the interpretation has further expanded. This case ruled that even charitable
organizations, hospitals, and educational institutions could be included if they involved systematic
activities and employees were hired to carry out these tasks. This broad interpretation helps in
ensuring that more sectors of employment fall under the Act, thereby extending protection to a larger
number of workers.
Triple Test for Industry:
The Supreme Court's Triple Test set clear criteria for determining whether an establishment qualifies
as an industry:
❖ Systematic and organized activity.
❖ Cooperation between employer and employee: Even if the employees are engaged in non-
profit work, they should be performing tasks under some supervision and control of employers.
❖ Production and distribution of goods or services for satisfaction of human wants and needs.
The Bangalore Water Supply case has been a cornerstone in making sure that many establishments
that wouldn’t traditionally be considered industries, such as hospitals or educational institutes, fall
under the umbrella of the Act.

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Example:
A non-profit hospital providing free medical services is considered an "industry" because it employs
doctors, nurses, and administrative staff, working systematically to deliver healthcare services, even
though its primary goal is not profit-making.
2. Workman (Section 2(s)):
❖ A workman refers to anyone employed in any industry for hire or reward, whether directly or
indirectly, to do manual, clerical, technical, skilled, unskilled, operational, or supervisory work.
However, it excludes those employed in managerial or administrative capacities or those in
supervisory capacities drawing wages beyond a specified threshold.
❖ The broad definition of a workman ensures that various categories of workers, such as casual
workers, technical employees, and even part-time workers, come under the protection of the Act.
However, the definition excludes managerial personnel or those in supervisory roles who have
decision-making authority.
Examples:
❖ A factory worker operating machines would clearly fall under the category of workman.
❖ A factory manager overseeing operations and making strategic decisions, who earns more than
the threshold, would not be considered a workman under the Act.
3. Industrial Dispute (Section 2(k)):
❖ An industrial dispute refers to any difference or conflict between employers and employees, or
between employees themselves, concerning employment, non-employment, terms of
employment, or conditions of labour.
❖ Industrial disputes can arise on a wide range of issues, including wage negotiations, working
hours, working conditions, bonuses, retrenchment, and so forth. The Act covers not just direct
employer-employee conflicts but also disputes among employees if it affects industrial harmony.
Examples:
❖ A dispute between workers and management over the introduction of new machinery that could
lead to job losses is considered an industrial dispute.
❖ A disagreement among employees about union representation could also qualify as an industrial
dispute.
4. Settlement (Section 2(p)):
❖ A settlement refers to an agreement reached between the employer and the workers during
conciliation proceedings or outside conciliation with the help of mediators. It is binding on all
parties and often leads to the resolution of disputes without resorting to strikes or lockouts.
❖ Settlements are crucial in preventing prolonged disputes, as they provide a way to amicably
resolve disagreements between workers and employers. If a settlement is reached through
conciliation, it becomes legally binding on both parties and is enforceable in a court of law.

5. Award (Section 2(b)):

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An award is a determination made by a Labour Court, Industrial Tribunal, or National Tribunal in

resolving an industrial dispute. It could be interim or final and is binding on all parties involved in the
dispute.
Key Provisions of the Industrial Disputes Act, 1947
1. Works Committee (Section 3):
❖ The Act requires large industrial establishments employing 100 or more workers to form Works
Committees. These committees are comprised of representatives of both employers and
employees, with the aim of fostering communication and resolving disputes at the earliest stage,
thus reducing the scope for industrial unrest.
❖ The Works Committee functions as a platform where workers and employers can discuss
matters related to working conditions, productivity, health, safety, and any grievances. It aims to
build mutual trust and cooperation between management and labour.
2. Conciliation (Sections 4 and 5):
❖ The Act provides for conciliation officers and boards to mediate disputes. Conciliation is the first
step in dispute resolution, and if successful, prevents the need for adjudication. Conciliation
officers are appointed by the government to help resolve conflicts amicably. If conciliation fails,
the dispute can be referred to adjudication or arbitration.
❖ Conciliation plays a critical role in settling disputes without leading to industrial unrest. The
officer listens to both parties and tries to bring them to an agreement. If the conciliation efforts
succeed, the outcome is recorded as a settlement, which becomes binding.
Example:
❖ A conciliation officer mediates between a group of workers demanding a wage increase and their
employer, leading to a compromise where the wages are increased incrementally over time.
3. Adjudication (Sections 7 to 10):
❖ When conciliation fails, disputes can be referred to adjudication by Labour Courts, Industrial
Tribunals, or National Tribunals. These tribunals have the authority to investigate and decide on
disputes. They deal with issues like retrenchment, wage disputes, work hours, and the
interpretation of employment terms.
❖ Adjudication is a formal legal process where a judge-like body hears both sides of the dispute
and gives a binding decision. This provision ensures that disputes that cannot be resolved
through negotiation or mediation are settled through legal means, thus avoiding strikes or
lockouts.
Example:
❖ A case regarding the legality of mass layoffs can be referred to an Industrial Tribunal, which will
examine the facts and give a ruling, such as reinstatement or compensation for affected workers.
4. Voluntary Arbitration (Section 10A):
❖ The Act promotes voluntary arbitration as a method of dispute resolution. The parties to a dispute
can agree to appoint an arbitrator who will give a binding decision. Voluntary arbitration helps
resolve disputes without resorting to strikes or lockouts.

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❖ Arbitration is less formal than adjudication but still ensures that disputes are resolved by a
neutral third party. It’s often faster and more flexible, and the decision (called an award) is legally
binding. Arbitration helps avoid prolonged industrial unrest.
5. Strikes and Lockouts (Sections 22 and 23):
❖ The Act regulates when strikes and lockouts can occur. Workers in public utility services (like
electricity, water, and transportation) must give at least six weeks' notice before going on strike.
Similarly, employers cannot declare lockouts without notice in these sectors.
❖ These provisions aim to prevent sudden disruptions in essential services. For industries not
considered public utilities, strikes and lockouts are prohibited during conciliation and arbitration
proceedings. Unlawful strikes and lockouts can lead to penalties, and both employers and
workers have to follow procedures laid down in the Act before resorting to such measures.
6. Layoff and Retrenchment (Sections 25A to 25N):
❖ A layoff refers to the temporary inability of an employer to provide work to workers due to reasons
such as shortages of raw materials or power, breakdown of machinery, or natural disasters.
Retrenchment refers to the permanent termination of workers' services for reasons other than
disciplinary action.
❖ Workers are entitled to compensation during layoffs or retrenchment. For retrenchment, the Act
specifies that workers should be given one month’s notice and compensation equivalent to 15
days' wages for every year of continuous service. These provisions safeguard workers from
arbitrary dismissal and ensure that they are compensated fairly.
Case Laws on the Industrial Disputes Act
Bangalore Water Supply v. A. Rajappa (1978):
❖ This case is one of the most significant judgments under the Act, where the Supreme Court
expanded the definition of "industry." The decision held that hospitals, educational institutions,
and other organizations that traditionally might not have been considered industries were indeed
industries under the Act.
❖ The ruling was significant because it brought many establishments under the purview of the
Industrial Disputes Act, ensuring protection for workers in those sectors. The Triple Test outlined
in the judgment is still applied to determine whether an entity qualifies as an industry.
D.N. Banerji v. P.R. Mukherjee (1953):
❖ In this case, the Supreme Court ruled that municipal corporations providing public utility services
like water supply could also be classified as industries under the Act. This ruling expanded the
definition of industry to include public-sector undertakings that provide essential services.
❖ The judgment underscored that even services provided by governmental or semi-governmental
bodies should fall under the purview of industrial law if they involve systematic employment of
workers.
Workmen of Dimakuchi Tea Estate v. Dimakuchi Tea Estate (1958):
❖ This case clarified the scope of "industrial dispute" under the Act. The Supreme Court held that
a dispute could qualify as an industrial dispute even if it only affects a section of workers,
provided it has wider implications for the labour force.
❖

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❖ The judgment established that the collective interests of workers take precedence, and even
localized disputes can be seen as affecting the broader workforce, thereby qualifying as
industrial disputes under the Act.
Conclusion
❖ The Industrial Disputes Act, 1947, provides a comprehensive framework for resolving conflicts
between employers and employees, ensuring industrial peace and stability. The Act's broad
definitions, coupled with significant judicial interpretations like the Bangalore Water
Supply case, have ensured that it covers a wide range of establishments and industries. Through
mechanisms like conciliation, arbitration, and adjudication, the Act encourages amicable
resolution of disputes and seeks to protect workers' rights, maintain industrial harmony, and
prevent abrupt disruptions in the economy. Understanding the Act is essential for employers,
workers, and legal professionals dealing with industrial relations.
❖ The Industrial Disputes Act, 1947: Definitions and Key Provisions (Expanded with Additional
Topics)
❖ In addition to the key provisions and case laws discussed earlier, there are several other
important topics under the Industrial Disputes Act, 1947 that are essential for a comprehensive
understanding of the law. Below are additional topics that cover various aspects of the Act.
1. Authorities under the Act
The Act establishes various authorities to deal with industrial disputes. These authorities have
distinct roles, ranging from mediating disputes to adjudicating conflicts. Here’s a detailed look at the
authorities under the Act:
Works Committee (Section 3)
❖ As discussed earlier, this committee comprises representatives from both employers and
employees. Its primary role is to promote good relations between the parties and ensure the
peaceful settlement of any differences that may arise in day-to-day operations.
Conciliation Officers (Section 4)
❖ Appointed by the government, these officers play a key role in mediating disputes and fostering
dialogue between the disputing parties. Conciliation officers attempt to prevent disputes from
escalating and aim to achieve settlements without the need for legal proceedings.
Boards of Conciliation (Section 5)
❖ The Boards of Conciliation consist of representatives of both employers and employees and are
headed by an independent chairman. The board’s function is similar to that of a conciliation
officer, but it is constituted for more complex or significant disputes involving multiple parties or
larger industries.
Court of Inquiry (Section 6)
❖ Courts of Inquiry are appointed by the government to investigate any matters connected to an
industrial dispute. The court's role is fact-finding and it submits a report based on its findings,
which can help the government or relevant authorities make decisions.
Labour Courts (Section 7)
❖ Labour Courts adjudicate industrial disputes concerning matters like wrongful termination, wage
issues, and conditions of work. They handle disputes listed under the Second Schedule of the
Act, which includes matters like the legality of strikes and lockouts, working conditions, and
dismissals.

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Industrial Tribunals (Section 7A)

❖ Industrial Tribunals deal with more complex issues under the Third Schedule of the Act, such as
wage structures, compensations, and the rights of employees under collective bargaining
agreements. They have broader jurisdiction than Labour Courts.
National Tribunals (Section 7B)
❖ National Tribunals handle disputes of national importance or disputes involving industries that
affect the entire country or multiple states. These tribunals are set up by the Central Government
and can pass binding awards in such disputes.
2. Strikes and Lockouts (Sections 22-24)
Strikes and lockouts are two major forms of industrial action used by workers and employers,
respectively. The Act contains several provisions that regulate when and how strikes and lockouts
can occur.
Conditions for Lawful Strikes (Section 22)
❖ Workers cannot go on strike in a public utility service without giving at least six weeks' notice.
Additionally, strikes are prohibited during the pendency of conciliation and adjudication
proceedings.
❖ Strikes must be peaceful, and any form of violent or coercive strike is considered unlawful.
Prohibition of Strikes and Lockouts During Proceedings (Section 23)
❖ Strikes and lockouts are strictly prohibited during the pendency of conciliation or adjudication
proceedings before a Labour Court, Tribunal, or National Tribunal. This ensures that disputes are
resolved peacefully through mediation or legal recourse rather than direct industrial action.
Illegal Strikes and Lockouts (Section 24)
❖ Strikes or lockouts that do not follow the procedures outlined in Sections 22 and 23 are deemed
illegal. Workers who participate in illegal strikes may face penalties, and employers declaring
illegal lockouts may face fines or other legal consequences.
3. Layoff, Retrenchment, and Closure Provisions (Chapter V-A & V-B)
The Act provides protection to workers in cases of layoff, retrenchment, and closure of industrial
establishments.
Layoff (Sections 25C to 25E)
❖ A layoff refers to the temporary inability of an employer to provide work to workers due to reasons
like shortage of raw materials, breakdown of machinery, or other economic reasons.
❖ Right to Compensation: Workers who have been laid off are entitled to compensation
amounting to 50% of their wages, provided they have been in continuous service for at least one
year.
❖ Exceptions: The employer is not required to pay layoff compensation if the layoff is due to natural
calamities or if the industry is of a seasonal nature.
Retrenchment (Sections 25F to 25N)
❖ Retrenchment refers to the termination of a worker's service for reasons other than disciplinary
action. The Act lays down strict rules for retrenchment, including the requirement to give one
month's notice and compensation.
❖ Retrenchment Compensation: The worker is entitled to 15 days' wages for every completed
year of continuous service.

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❖ Employers are required to inform the appropriate government authority before retrenching
workers.
Closure of Undertakings (Sections 25K to 25O)
❖ The Act regulates the closure of industrial undertakings, especially in cases where 100 or more
workers are employed.
❖ Notice and Compensation: Employers must give 60 days' notice to the government before
closing an undertaking and must pay compensation to workers affected by the closure.
❖ Employers who fail to comply with these provisions may face legal action, including penalties
and the obligation to pay compensation to affected workers.
4. Protected Workmen (Section 33A)
The concept of protected workmen refers to workers who are union leaders or representatives and
are protected from certain disciplinary actions during the pendency of disputes. This provision
ensures that union leaders are not unfairly targeted by employers for participating in disputes or for
their involvement in trade union activities.
❖ Employers are prohibited from altering the service conditions or dismissing protected workmen
without permission from the concerned authorities during the pendency of disputes.
❖ Example: A trade union leader cannot be dismissed or transferred by the employer without
permission from the Labour Court or Tribunal, ensuring that workers can freely participate in
union activities without fear of retaliation.
5. Penalties for Non-Compliance (Section 25Q to 30)
The Act lays down penalties for non-compliance with its provisions. Violations of various sections
can lead to fines or imprisonment, depending on the severity of the breach.
Penalties for Illegal Strikes and Lockouts (Section 26)
❖ Illegal strikes or lockouts can attract a fine of up to Rs. 1,000 or imprisonment for up to one month
or both.
Penalties for Breach of Settlement or Award (Section 29)
❖ Employers or workers who violate the terms of a binding settlement or award are subject to fines
and penalties.
Example:
❖ If an employer fails to implement an award passed by the Labour Court, they may be penalized
by fines or imprisonment, ensuring compliance with judicial decisions.
6. Grievance Redressal Mechanism (Section 9C)
The Act mandates that every industrial establishment employing 20 or more workers should have
a Grievance Redressal Committee to address individual worker grievances. This is a crucial aspect
of the Act as it provides workers with a formal channel to voice their concerns.
❖ The Grievance Redressal Committee is responsible for handling issues like wage disputes,
harassment, unfair treatment, and other workplace grievances.
❖ The committee must resolve grievances within 45 days of receiving a complaint, ensuring timely
justice for workers.
7. Unfair Labour Practices (Schedule V)

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The Act recognizes and prohibits unfair labour practices by both employers and employees, which
include acts that undermine workers' rights or create a hostile work environment.
Unfair Practices by Employers:
❖ Refusal to bargain collectively with workers’ unions.
❖ Firing workers because of their union activities.
❖ Showing favoritism or discrimination based on union membership.
❖ Interfering with the formation or functioning of trade unions.
Unfair Practices by Employees or Unions:
❖ Inciting workers to illegal strikes.
❖ Using intimidation to prevent non-union workers from working.
❖ Instigating workers to refuse to cooperate with grievance procedures.
Penalties for engaging in unfair labour practices include fines or imprisonment, depending on the
severity and nature of the violation.
8. Case Law: Workmen of Hindustan Lever Ltd. v. Hindustan Lever Ltd. (1973)
In this landmark case, the Supreme Court held that a legitimate business strategy (such as a
company's decision to restructure or shut down) cannot be questioned unless it is found to be
discriminatory or in bad faith. The case is significant because it addressed the limitations of judicial
interference in business decisions while safeguarding workers' rights under the Act.
Conclusion
The Industrial Disputes Act, 1947 is a vital piece of legislation that ensures the protection of
workers’ rights while also maintaining a balance between the interests of employers and employees.
Through a structured approach to dispute resolution, provisions for lawful strikes and lockouts,
penalties for non-compliance, and mechanisms for worker compensation during layoffs and
retrenchment, the Act plays a crucial role in maintaining industrial peace in India. The Act’s
continued relevance, along with landmark judicial interpretations, ensures that industrial relations
evolve in line with the needs of both workers and the economy.

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INDUSTRIAL DISPUTES ACT, 1947: DISPUTE RESOLUTION MECHANISMS

The Industrial Disputes Act, 1947 (IDA) is a comprehensive piece of legislation that regulates the
relationship between employers, employees, and their respective trade unions. One of the key
features of the Act is the framework it provides for resolving industrial disputes through conciliation,
arbitration, and adjudication. The main objective is to ensure industrial peace and promote smooth
industrial relations.
1. Conciliation under the Industrial Disputes Act, 1947
Introduction
Conciliation is the first and often preferred method for resolving industrial disputes under the IDA. It
is a non-binding, voluntary process where a third party facilitates communication between the
employer and employees to resolve disputes amicably. The primary objective of conciliation is to
settle disputes quickly without resorting to legal or adjudicatory measures.
Key Provisions:
❖ Section 4: Appointment of Conciliation Officers by the appropriate government.
❖ Section 5: Constitution of a Board of Conciliation for complex disputes.
Role of Conciliation Officers:
Conciliation Officers are appointed by the government to mediate and promote voluntary settlement
of disputes. They are government officials with the authority to:
❖ Investigate disputes,
❖ Summon both parties for meetings,
❖ Encourage negotiations,
❖ Record settlements if reached.
Procedure of Conciliation:
1. Initiation: When an industrial dispute arises, either party (employer or workers) can approach a
Conciliation Officer or the government may direct conciliation efforts.
2. Meetings and Negotiations: The Conciliation Officer calls both parties for meetings and
facilitates discussions to bridge differences.
3. Settlement: If an agreement is reached, it is documented as a Memorandum of Settlement,
which becomes binding on both parties under Section 18 of the Act.
4. Failure Report: If conciliation fails, the Conciliation Officer submits a failure report to the
government. Based on this report, the government may refer the dispute to adjudication (Labour
Court or Tribunal).
Advantages of Conciliation:
❖ Promotes industrial peace through voluntary agreements.
❖ Avoids legal complexities and adversarial relationships.
❖ Quick and cost-effective.
Limitations:
❖ Non-binding until a settlement is reached.
❖ Requires mutual cooperation from both parties, which can lead to failure if either party is
uncooperative.
Case Law: National Engineering Industries Ltd. v. State of Rajasthan (2000)

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❖ In this case, the Supreme Court emphasized the importance of conciliation as a primary tool for
industrial peace. It stated that employers should prefer conciliation over adjudication as the first
step in dispute resolution to avoid litigation.
2. Arbitration under the Industrial Disputes Act, 1947
Introduction
Arbitration is an alternative dispute resolution mechanism where the parties in dispute agree to
submit their issues to a neutral third party (an arbitrator). Unlike conciliation, the decision or "award"
of the arbitrator is binding on both parties. Arbitration is voluntary, and both parties must consent to
the process.
Key Provisions:
❖ Section 10A: Allows for Voluntary Arbitration. Employers and workers can agree to refer their
dispute to arbitration at any stage of the conflict.
Types of Arbitration:
❖ Voluntary Arbitration: Both parties mutually agree to refer the dispute to an arbitrator.
❖ Compulsory Arbitration: The government can direct arbitration in cases involving national
importance or essential services.
Procedure for Arbitration:
1. Agreement: The parties must enter into a written arbitration agreement, specifying the names of
the arbitrators and the issues to be arbitrated.
2. Appointment of Arbitrator: The arbitrator(s) can be one or more individuals mutually chosen by
the disputing parties.
3. Arbitration Hearings: The arbitrator holds hearings where both parties present evidence and
arguments.
4. Award: After considering the facts, the arbitrator delivers an award. The award is binding and
final, and has the status of a court decree.
5. Publication of Award: The award is submitted to the appropriate government, which publishes
it within 30 days.
Advantages of Arbitration:
❖ Efficiency: It is faster and more flexible than court litigation.
❖ Expertise: The parties can choose arbitrators with expertise in labor relations or specific
industrial sectors.
❖ Binding Nature: The award is final and enforceable, bringing certainty to the resolution.
Limitations:
❖ Arbitration requires mutual consent, and it cannot proceed if one party refuses.
❖ The scope for appeal is limited, as arbitral awards are generally final.
Case Law: Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor Sabha (1980)
❖ Facts: A dispute arose between Gujarat Steel Tubes Ltd. and the workers’ union (Mazdoor Sabha)
regarding the dismissal of workers who participated in a strike. The company termed the strike
illegal and terminated workers' services.
❖ Issues:
✓ Whether the strike was illegal.

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✓ Whether the workers’ dismissal was justified.

❖ Judgment: The Supreme Court ruled that the strike, in this case, was not illegal and held that the
termination of workers was unjustified. The Court emphasized that disputes should be resolved
through conciliation and arbitration, rather than harsh measures like dismissal. This case
reinforced the significance of arbitration as a peaceful dispute resolution method.
3. Adjudication under the Industrial Disputes Act, 1947
Introduction
Adjudication is the last resort for dispute resolution under the IDA when conciliation and arbitration
fail. It involves formal, judicial resolution of disputes by Labour Courts, Industrial Tribunals,
or National Tribunals. These bodies are set up by the government to handle industrial disputes and
give awards that are legally binding.
Key Provisions:
❖ Section 7: Establishes Labour Courts for resolving specific types of disputes, such as those
related to the legality of strikes and dismissals.
❖ Section 7A: Provides for the creation of Industrial Tribunals for resolving more complex
disputes like wages, working conditions, and retrenchment.
❖ Section 7B: Establishes National Tribunals for disputes affecting multiple states or industries
of national importance.
Types of Adjudication Bodies:
1. Labour Courts: Deal with disputes relating to standing orders, dismissals, strikes, and other
disciplinary actions.
2. Industrial Tribunals: Handle complex matters like wages, hours of work, leave, retrenchment,
and closure of establishments.
3. National Tribunals: Constituted by the Central Government for disputes of national importance
that involve multiple industries or states.
Procedure of Adjudication:
1. Reference of Dispute: If conciliation or arbitration fails, the appropriate government refers the
dispute to a Labour Court, Industrial Tribunal, or National Tribunal.
2. Hearings: The court or tribunal hears the parties, examines evidence, and gives an award.
3. Final and Binding Award: The award given by the court or tribunal is binding and enforceable,
and can only be appealed on limited grounds (e.g., jurisdictional error).
Advantages of Adjudication:
❖ Provides a legal, binding resolution to disputes.
❖ Judges or adjudicators are experienced in labor law, ensuring expertise in decision-making.
❖ Offers legal protection to both employers and workers under a structured process.
Limitations:
❖ Adjudication can be a lengthy and costly process.
❖ The adversarial nature of court proceedings can strain employer-worker relationships.
Case Law: Bharat Bank Ltd. v. Employees of Bharat Bank (1950)
❖ In this case, the Supreme Court clarified the role of Industrial Tribunals under the Industrial
Disputes Act. It held that these tribunals act in a quasi-judicial capacity and their awards are

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binding like a civil court’s decree. The Court emphasized that the tribunals' decisions should
reflect industrial justice, ensuring a balance between workers’ rights and employers' obligations.
4. Comparative Analysis of Conciliation, Arbitration, and Adjudication

Aspect Conciliation Arbitration Adjudication

Nature Voluntary, non-binding Voluntary, binding Compulsory, judicial,

binding

Role of Third Conciliator (mediator) Arbitrator (decision- Judge or Tribunal

Party maker) (adjudicator)

Speed of Fast, informal Moderate Lengthy, formal

Resolution

Binding Only if settlement Binding award Binding and

Nature reached enforceable award

Cost Low Moderate High

Advantages Quick, low cost, Faster than court, expert Finality of legal dispute,
maintains goodwill resolution ensures justice

Limitations Requires mutual Requires mutual Expensive, time-

cooperation consent, limited appeal consuming, adversarial

Conclusion
The Industrial Disputes Act, 1947 provides a structured and progressive framework for resolving
industrial disputes, ensuring a balance between the rights of workers and
employers. Conciliation encourages peaceful negotiation, arbitration offers a binding but less
formal resolution, and adjudication serves as the final legal remedy. By fostering cooperation and
reducing adversarial litigation, the dispute resolution mechanisms under the IDA play a critical role
in maintaining industrial harmony in India.

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INDUSTRIAL DISPUTES ACT, 1947: STRIKES, LOCKOUTS, AND LAYOFFS

The Industrial Disputes Act, 1947 (IDA) is a comprehensive legislative framework aimed at
promoting industrial harmony by regulating various aspects of employer-employee relations. Among
its core provisions are the mechanisms governing strikes, lockouts, and layoffs, which play a
pivotal role in managing industrial conflicts. These provisions balance the interests of both
employers and employees, ensuring that industrial actions are lawful and fair. This chapter delves
deeper into these three key concepts, providing detailed explanations, relevant legal provisions, and
case law.
1. Strikes under the Industrial Disputes Act, 1947
Definition and Concept of Strike
❖ A strike is one of the most common tools used by workers to express their collective grievances
against employers. According to Section 2(q) of the IDA:
❖ "A cessation of work by a body of persons employed in any industry acting in combination, or a
concerted refusal to work under their employer, or a refusal to accept employment, with an
intention to enforce a demand."
Key Characteristics of a Strike:
❖ It involves a collective action taken by workers, usually led by a trade union or workers’
association.
❖ The goal is to pressurize the employer into conceding to their demands, which may relate to
wages, working conditions, job security, or other employment terms.
❖ Strikes can be peaceful, but in certain instances, they can lead to significant economic and
operational disruptions.
Types of Strikes:
❖ General Strike: Workers across different industries strike together on common issues, often of
national or regional significance.
❖ Sympathy Strike: Workers strike in solidarity with another group of workers who are engaged in
a dispute.
❖ Stay-in Strike: Workers occupy the workplace but refuse to perform their duties.
❖ Wildcat Strike: A strike conducted without official union sanction or without following proper
legal procedures.
Legal Provisions Related to Strikes:
❖ Section 22: Prohibits strikes in public utility services (e.g., water, electricity, and transport
services) without giving prior notice. The notice must be provided at least six weeks before
striking, and the strike cannot commence within 14 days of giving the notice.
❖ Section 23: Prohibits strikes during the pendency of conciliation or adjudication proceedings.
This ensures that industrial peace is maintained while disputes are being formally addressed
through legal channels.
❖ Section 24: Strikes can either be legal or illegal, depending on whether the statutory
requirements under the Act are fulfilled.
Legal and Illegal Strikes:

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❖ A legal strike adheres to the procedural requirements laid out by the IDA, including providing
proper notice, not striking during adjudication, and ensuring that the demands raised are
legitimate.
❖ An illegal strike violates any of the provisions in the Act, such as not giving the required notice or
striking during adjudication or conciliation. Illegal strikes can lead to consequences like wage
deductions, loss of job security, or disciplinary actions.
Consequences of an Illegal Strike:
❖ Workers participating in illegal strikes are not entitled to wages during the strike period.
❖ Employers may take disciplinary action, including suspension or dismissal.
❖ Trade unions may face legal action or penalties if they lead an illegal strike.
Case Law: Syndicate Bank v. K. Umesh Nayak (1994):
❖ Facts: The case involved a bank employee who was dismissed after participating in a strike. The
employee challenged the dismissal, contending that the strike was legal.
❖ Issues: The Court had to determine whether the strike was illegal and whether the disciplinary
action of dismissal was justified.
❖ Judgment: The Supreme Court upheld the dismissal, stating that participating in an illegal strike
provided valid grounds for termination. The Court also emphasized that a strike's legality is based
on strict adherence to the procedural requirements of the IDA. If the requirements are not
fulfilled, a strike is deemed illegal, and disciplinary action by the employer is warranted.
Critical Points from the Case:
❖ The Court reiterated that workers have the right to strike, but it must be done legally.
❖ Employers are within their rights to take disciplinary measures if the strike is found to be illegal.
❖ The case serves as a reminder that both workers and employers must follow the law meticulously
in matters of industrial action.
2. Lockouts under the Industrial Disputes Act, 1947
Definition and Concept of Lockout
❖ While workers resort to strikes to press their demands, employers have a countermeasure in the
form of a lockout. A lockout is defined under Section 2(l) of the IDA as:
❖ "The temporary closing of a place of employment, or the suspension of work, or the refusal by an
employer to continue to employ any number of persons employed by him."
Key Features of Lockouts:
❖ A lockout occurs when an employer closes the business or refuses to let workers work, typically
in response to industrial unrest like strikes or as a bargaining tool during labor disputes.
❖ It can be an offensive action (to pressurize workers) or defensive (in response to a strike).
Legal Provisions Related to Lockouts:
❖ Section 22: Like strikes, lockouts in public utility services require prior notice.
❖ Section 23: Prohibits lockouts during the pendency of conciliation or adjudication proceedings.
❖ Section 24: Lockouts can be categorized as legal or illegal, depending on whether they adhere
to statutory requirements.
Legal and Illegal Lockouts:

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❖ A legal lockout complies with the notice period, timing, and procedural conditions of the IDA.
❖ An illegal lockout occurs if the employer initiates a lockout without prior notice or during the
pendency of conciliation proceedings.
Consequences of Illegal Lockouts:
❖ Employers may be subject to fines and penalties for conducting an illegal lockout.
❖ Workers are entitled to full wages for the duration of an illegal lockout.
❖ Courts may also order the reopening of the establishment if the lockout is found to be illegal.
Case Law: Kairbetta Estate v. Rajamanickam (1960):
❖ Facts: In this case, the employer declared a lockout following a strike by workers at a plantation.
The workers challenged the legality of the lockout.
❖ Issues: The Court had to decide whether the lockout was a valid response to the workers' strike.
❖ Judgment: The Supreme Court held that a lockout in response to an illegal strike could be
deemed legal. The case established the principle that a lockout can be used as a legitimate
countermeasure if the workers’ strike is deemed illegal.
Key Takeaways from the Case:
❖ The case demonstrated that employers have the right to lock out workers, but only under specific
legal conditions.
❖ It emphasized that the legality of a lockout depends on compliance with statutory provisions and
the context in which the lockout is declared.
3. Layoffs under the Industrial Disputes Act, 1947
Definition and Concept of Layoff
❖ A layoff refers to the temporary suspension of employment initiated by the employer due to
circumstances beyond their control, such as a shortage of raw materials, financial crises, or
natural calamities. Section 2(kkk) of the IDA defines a layoff as:
❖ "The failure, refusal, or inability of an employer on account of shortage of coal, power, or raw
materials, or the accumulation of stocks, or the breakdown of machinery, or natural calamities
to give employment to a workman whose name is on the muster rolls of his industrial
establishment."
Key Features of a Layoff:
❖ Unlike strikes and lockouts, layoffs are not a deliberate industrial action but occur due to
operational or economic constraints faced by the employer.
❖ Layoffs are temporary, and employees expect to be reinstated when the situation improves.
Legal Provisions Related to Layoffs:
❖ Section 25C: Provides for layoff compensation. Workers who are laid off are entitled to
compensation equal to 50% of their wages for the layoff period, provided they have worked for at
least one year in the establishment.
❖ Section 25M: Prohibits layoffs in establishments employing 100 or more workers without prior
permission from the appropriate government authority.
Compensation for Layoffs:

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❖ Workers laid off due to reasons beyond the employer’s control are entitled to 50% of their
wages for the period of the layoff.
❖ Compensation is only applicable to permanent workers who have completed one year of
continuous service.
Exceptions to Layoff Compensation:
❖ Casual, temporary, or seasonal workers are not entitled to layoff compensation.
❖ Layoffs caused by strikes or natural disasters may exempt the employer from paying
compensation.
Consequences of Illegal Layoffs:
❖ Employers who carry out illegal layoffs (without government permission or in violation of
statutory provisions) may face penalties.
❖ Workers may be entitled to full wages during the period of an illegal layoff.
Case Law: Workmen of Dewan Tea Estate v. Their Management (1964):
❖ Facts: This case involved workers of a tea estate who were laid off due to an alleged machinery
breakdown. The workers contested the layoff, claiming it was unjustified.
❖ Issues: The Court had to decide whether the breakdown of machinery was a valid reason for the
layoff and whether the workers were entitled to compensation.
❖ Judgment: The Supreme Court held that the layoff was justified as it was due to reasons beyond
the employer’s control. The Court ruled that the workers were entitled to layoff compensation as
per the provisions of the IDA.
Key Takeaways from the Case:
❖ The case highlighted that layoffs are permissible if caused by legitimate factors such as a
breakdown in operations.
❖ Employers must ensure that layoff procedures comply with the IDA, especially concerning
compensation.
4. Comparative Analysis of Strikes, Lockouts, and Layoffs

Aspect Strikes Lockouts Layoffs

Initiator Workers Employer Employer (due to

external factors)

Nature Cessation of work by Temporary closure or Temporary suspension

employees suspension of work of employment

Objective To press demands To pressurize workers Response to external

(wages, working during disputes factors (raw materials,
conditions, etc.) finances, etc.)

Legal Sections 22-24 of IDA Sections 22-24 of IDA Sections 25C-25M of IDA
Framework

Compensation No wages for illegal No compensation to 50% wages (if layoff is

strikes workers legal)

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Legal Prior notice in public Prior notice in public Prior government

Requirements utility services, utility services, approval in certain cases
compliance with compliance with (establishments with
conciliation conciliation over 100 employees)
proceedings proceedings

Consequences Disciplinary action, loss Fines, full wages Penalties for employers,
of Illegality of wages payable to workers full wages due to
workers

Conclusion
The Industrial Disputes Act, 1947 seeks to balance the rights of workers and employers when it
comes to industrial actions like strikes, lockouts, and layoffs. Strikes are an essential tool for
workers to demand better conditions, while employers use lockouts to safeguard their interests
during labor disputes. Layoffs differ in nature, as they often arise due to operational challenges. The
IDA ensures that these actions are regulated to avoid unnecessary disruptions in industrial peace
and to provide legal recourse in case of unlawful actions.
Case laws such as Syndicate Bank v. K. Umesh Nayak and Kairbetta Estate v.
Rajamanickam further clarify the boundaries of legal and illegal actions, setting important
precedents for how strikes, lockouts, and layoffs should be approached.

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THE TRADE UNIONS ACT, 1926 – REGISTRATION AND RECOGNITION

The Trade Unions Act, 1926 was enacted to provide for the registration, regulation, and legal
recognition of trade unions in India. The primary goal of the Act is to empower workers and employees
to form associations that can collectively bargain with employers for better working conditions,
wages, and other employment-related benefits. This chapter provides a detailed analysis of
the registration and recognition of trade unions, along with relevant case laws, such as All India
Bank Employees' Association v. National Industrial Tribunal, 1962.
Purpose and Objective of the Trade Unions Act, 1926
The Act was enacted to:
❖ Legalize the formation of trade unions.
❖ Grant legal protection to trade union activities.
❖ Define the rights and liabilities of registered trade unions.
❖ Provide workers with the right to form associations to negotiate with employers on issues like
wages, hours of work, and conditions of employment.
❖ Promote collective bargaining to prevent and resolve disputes.
Trade unions play a crucial role in balancing the power dynamics between employers and
employees, fostering collective bargaining, and protecting workers’ rights.
Registration of Trade Unions
Definition of a Trade Union
❖ According to Section 2(h) of the Trade Unions Act, 1926, a trade union is defined as:
❖ "Any combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workers and employers or between workers and workers or
between employers and employers, or for imposing restrictive conditions on the conduct of any
trade or business."
Procedure for Registration
The process of registering a trade union is crucial for its legal recognition. Registered trade unions
gain several statutory protections and benefits, which unregistered ones lack. Sections 3 to 9 of the
Act outline the procedure for registration.
1. Application for Registration (Section 4):
❖ Any seven or more members of a trade union may apply for its registration.
❖ The application must be made to the Registrar of Trade Unions of the respective state where the
union is intended to function.
❖ The application should include:
✓ The name of the trade union.
✓ The address of the trade union’s office.
✓ The names, occupations, and addresses of the members of the executive committee.
✓ A copy of the rules of the trade union.
2. Certification by Registrar (Section 5):

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❖ If the Registrar is satisfied that the application meets all statutory requirements, he will register
the trade union and issue a certificate of registration.
❖ The certificate is conclusive evidence of the trade union’s legal registration.
3. Requirements for Registration (Section 6):
❖ The trade union must have a constitution and rules governing its operations. These rules should
cover:
✓ The purpose for which the general fund will be used.
✓ The method of electing office bearers and executives.
✓ The maintenance of a membership register.
✓ Provision for meetings and the decision-making process.
✓ The manner in which disputes between members and the union will be resolved.
4. Cancellation of Registration (Section 10):
❖ The Registrar may withdraw or cancel the registration if:
✓ The union has contravened any provisions of the Act.
✓ The union’s membership has fallen below the statutory minimum.
✓ The union engages in unlawful activities.
Legal Effects of Registration
Once a trade union is registered, it enjoys the following benefits:
❖ Legal entity: It becomes a body corporate, meaning it can sue or be sued in its name.
❖ Immunity from civil suits: Section 17 provides immunity from liability in certain torts (e.g.,
interference with trade, business, or employment).
❖ Recognition in industrial disputes: The trade union can legally represent its members during
negotiations, arbitrations, and legal disputes.
Case Law: All India Bank Employees’ Association v. National Industrial Tribunal (1962)
Facts:
❖ The All India Bank Employees' Association (AIBEA), a prominent trade union, challenged the
National Industrial Tribunal's jurisdiction in a matter where the employees' association was not
a registered trade union under the Trade Unions Act.
❖ The primary contention was whether an unregistered trade union could represent workers in
industrial disputes.
Issues:
❖ Whether an unregistered trade union has the standing to represent workers in an industrial
dispute under the Trade Unions Act.
❖ The role of registration in conferring legal standing on trade unions for collective bargaining.
Judgment:
❖ The Supreme Court held that only registered trade unions are entitled to the legal benefits
conferred by the Trade Unions Act.

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❖ It emphasized the importance of registration in giving legal recognition to the union's right to
represent workers in disputes. Without registration, the union lacked the legal standing to
approach the tribunal on behalf of its members.
Key Takeaways:
❖ Registration under the Act is essential for a trade union to enjoy statutory privileges.
❖ The case reaffirmed that legal protection and recognition under industrial law are contingent
upon the union’s registration status.
Recognition of Trade Unions
While the Trade Unions Act, 1926 provides the framework for registration, it does not directly govern
the recognition of trade unions. Recognition refers to the formal acknowledgment by an employer of
a trade union’s right to represent employees for collective bargaining purposes. This is typically
governed by industrial practices and other statutes like the Industrial Disputes Act, 1947.
Criteria for Recognition
Recognition is usually based on the following factors:
❖ Majority Representation: A trade union is recognized if it represents the majority of workers in a
particular industry or organization.
❖ Membership Verification: The employer may require the union to provide proof of majority
membership.
❖ Negotiation Agreements: Recognized trade unions are the ones that engage in collective
bargaining agreements (CBAs) with the employer.
Rights of Recognized Trade Unions
❖ Collective Bargaining: A recognized union has the exclusive right to negotiate with the employer
on matters concerning wages, working conditions, and employment terms.
❖ Right to represent: A recognized trade union can represent employees before labor courts and
tribunals in matters of industrial disputes.
❖ Consultation: Employers are legally required to consult recognized unions in cases of layoffs,
retrenchments, or changes in employment policies.
Refusal of Recognition
Employers may refuse to recognize a trade union in certain situations, such as:
❖ The union does not represent a significant portion of the workforce.
❖ Internal conflicts between multiple unions exist within the same organization.

Rights and Privileges of Registered Trade Unions

1. Right to Collective Bargaining: Registered trade unions are legally entitled to engage in
collective bargaining on behalf of their members.
2. Right to Immunity from Civil Suit: Section 17 of the Act provides immunity to members of a
registered trade union from civil suits related to strikes, peaceful protests, or other trade union
activities aimed at promoting their members' welfare.
3. Right to Fundraising and Using Funds: Registered trade unions can raise funds for legal,
administrative, and social purposes. They can use funds to:
✓ Pay for salaries, legal advice, and welfare activities.

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✓ Conduct strikes or lockouts.

✓ Support trade union members and their families during strikes.
4. Criminal Immunity for Peaceful Activities: Section 18 of the Act provides that no criminal
prosecution shall lie against a registered trade union or its members for peacefully pursuing trade
disputes.
Liabilities of Registered Trade Unions
1. Obligations to Maintain Accounts: Trade unions must maintain accurate financial accounts,
including all receipts, payments, and assets. These accounts are subject to inspection by the
Registrar of Trade Unions.
2. Liability for Violations: Registered trade unions can be held liable for any unlawful acts,
including illegal strikes or lockouts. Trade unions that do not comply with statutory requirements
may have their registration revoked.
Case Law: National Engineering Industries Ltd. v. State of Rajasthan (2000)
Facts:
❖ The case involved a dispute between the National Engineering Industries and its workers' union
regarding the recognition of a newly formed trade union.
❖ The management refused to recognize the new union, claiming that it did not represent a majority
of workers.
Issues:
❖ Whether the refusal to recognize a union without proper membership verification violates
workers' rights under the Trade Unions Act.
Judgment:
❖ The Supreme Court held that the recognition of a trade union should be based on majority
representation.
❖ The Court emphasized that membership verification is essential in determining which union
legitimately represents the workers. Without proper verification, employers cannot arbitrarily
refuse recognition.
Key Takeaways:
❖ Recognition of trade unions should be based on objective criteria, such as majority membership.
❖ Employers must follow due process in verifying union membership before granting or refusing
recognition.
Conclusion
The Trade Unions Act, 1926 serves as the cornerstone of labor law in India by providing a structured
mechanism for registering and recognizing trade unions. Registration confers legal status on unions,
allowing them to engage in collective bargaining and represent workers in industrial disputes.
However, mere registration does not guarantee recognition, which is determined by an employer's
acknowledgment of the union’s majority status.
Case laws like All India Bank Employees’ Association v. National Industrial Tribunal
(1962) and National Engineering Industries Ltd. v. State of Rajasthan (2000) have provided clarity
on the rights and liabilities of registered unions. These judicial pronouncements underscore the
importance of adherence to statutory provisions and fair practices in employer-union relations.

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THE TRADE UNIONS ACT, 1926 – RIGHTS, LIABILITIES, AND PRIVILEGES

The Trade Unions Act, 1926 provides a framework for the formation, registration, and regulation of
trade unions in India. It empowers workers to form unions to protect and promote their interests,
particularly in matters of employment, wages, and working conditions. In addition to laying down the
procedures for registration, the Act defines the rights, liabilities, and privileges that are granted to
trade unions. These rights and privileges are crucial for the operation of trade unions, while liabilities
ensure accountability and adherence to the law.
This chapter covers the key provisions related to the rights, liabilities, and privileges of registered
trade unions under the Trade Unions Act, along with case law, including the landmark judgment
in Rohtas Industries Ltd. v. Its Union (1976).
Rights of Registered Trade Unions
The Act provides several rights to registered trade unions, which empower them to function
effectively in representing workers. These include the following:
Right to Collective Bargaining
One of the primary functions of a trade union is to engage in collective bargaining with the employer.
This involves negotiating with employers on issues like wages, working conditions, hours of work, and
other terms of employment. Collective bargaining is recognized as a legitimate and legal function of
registered trade unions.
Right to Immunity from Civil and Criminal Liability
Under Sections 17 and 18 of the Trade Unions Act, registered trade unions enjoy immunity from
certain civil and criminal liabilities:
❖ Section 17: Members of a registered trade union cannot be sued for conspiracy if they are acting
in furtherance of a trade dispute. This protects unions from being targeted for carrying out
legitimate activities, such as organizing strikes.
❖ Section 18: Grants immunity to trade unions from certain civil suits related to acts done in
furtherance of a trade dispute. This means that trade unions and their office bearers cannot be
held civilly liable for torts like inducing breach of contract or interfering with trade.
Right to Raise Funds
Registered trade unions are allowed to collect subscriptions from members and raise funds for lawful
purposes, including:
❖ Legal expenses.
❖ Welfare activities.
❖ Supporting members during strikes.
❖ Promoting trade union activities, such as organizing meetings, protests, and campaigns.
Under Section 15, the funds can be utilized for specific purposes, such as:
❖ Salaries and allowances of union officials.
❖ Legal proceedings related to trade disputes.
❖ Welfare programs for members and their dependents.
Right to Organize Strikes

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❖ Although the Industrial Disputes Act, 1947 governs the conduct of strikes, registered trade
unions play a critical role in organizing lawful strikes to press their demands. Registered trade
unions have the right to call for strikes, provided they comply with the procedural requirements
laid down by law, such as giving notice of the strike.
Right to Own Property
❖ A registered trade union, being a legal entity, can acquire, own, and manage property in its
name. This includes holding property such as buildings, equipment, and land, which can be used
for union offices, meetings, and welfare activities.
Privileges of Registered Trade Unions
❖ Registered trade unions enjoy several privileges that enhance their ability to function efficiently
in protecting the interests of their members:
Legal Recognition
❖ Registration provides legal recognition to trade unions, which is essential for engaging in
collective bargaining and industrial disputes. It gives the union a corporate status, allowing it to
sue and be sued in its own name.
Protection of Union Funds
❖ Section 16 of the Act provides protection for the general funds of the union. The funds can only
be used for purposes directly related to trade union activities. This ensures that the union's
resources are safeguarded and used responsibly.
Right to Represent Members
❖ A registered trade union has the exclusive right to represent its members in legal proceedings,
arbitration, and conciliation matters. The union can appear on behalf of workers before industrial
tribunals, labor courts, and other dispute resolution forums.
Liabilities of Registered Trade Unions
❖ While the Act provides several rights and privileges to registered trade unions, it also imposes
certain liabilities and responsibilities:
Accountability for Unlawful Acts
❖ Trade unions are responsible for ensuring that their activities comply with the law. Engaging in
illegal strikes, inciting violence, or using union funds for purposes other than those specified in
the Act can result in penalties.
❖ For example, if a strike is declared illegal under the Industrial Disputes Act, the trade union may
face penalties or loss of its registration. Additionally, union members may not be immune from
civil suits if the strike results in unlawful activities.
Maintenance of Accounts
❖ Section 20 of the Act mandates that every registered trade union must maintain proper financial
accounts. The accounts must be audited annually, and the union must submit an annual
financial return to the Registrar of Trade Unions. Failure to maintain accounts or misusing union
funds can lead to penalties, cancellation of registration, and legal action.
Liability for Compensation
❖ If a registered trade union engages in unlawful activities or breaches its legal duties, it may be
held liable to compensate the aggrieved parties. This includes liability for damages caused by
illegal strikes or any actions that disrupt industrial peace.

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Relevant Case Law: Rohtas Industries Ltd. v. Its Union (1976)

Facts of the Case:
❖ The workers' union of Rohtas Industries Ltd. resorted to strike action to press their demands for
better working conditions and higher wages. However, the strike led to significant disruptions in
the company's operations.
❖ The company, alleging that the union's strike was illegal, sought to claim damages from the union
for the losses suffered due to the strike.
Issues:
❖ Whether a registered trade union could be held liable for damages caused by an illegal strike.
❖ Whether the immunity provided to trade unions under Sections 17 and 18 of the Trade Unions Act
protected them from civil suits related to industrial actions.
Judgment:
❖ The Supreme Court held that trade unions can be held liable for damages if their actions result
in illegal conduct or activities that disrupt industrial peace.
❖ The Court clarified that while Sections 17 and 18 provide immunity to registered trade
unions for legitimate trade union activities, this immunity does not extend to illegal activities.
❖ In this case, the strike was deemed illegal because the union failed to follow the proper
procedure outlined in the Industrial Disputes Act, such as giving notice of the strike.
❖ The Court ruled that the union was liable to compensate the company for the losses caused by
the illegal strike.
Key Takeaways from the Case:
❖ The immunity provided to trade unions under the Trade Unions Act is not absolute. Trade unions
are still accountable for unlawful activities, including illegal strikes.
❖ Civil liability may be imposed on a trade union if it engages in actions that result in damage or
disruption, especially if those actions are not in furtherance of a legitimate trade dispute.
❖ The case reaffirmed that immunity under Section 17 and 18 is only applicable to lawful trade
union activities, and unions must ensure that their actions conform to the legal procedures
established under other labor laws, such as the Industrial Disputes Act.
Other Relevant Case Law
T.K. Rangarajan v. Government of Tamil Nadu (2003):
❖ This case dealt with the right of government employees to strike. The Supreme Court held that
there is no fundamental right to strike, especially in the case of government employees. While
private-sector workers may organize strikes as a legitimate means of protest, government
employees' strikes can be considered unlawful and detrimental to public interest.
❖ The case emphasized that strike actions must be lawful, and unions should ensure they follow
the prescribed legal procedures.
Karachi Gas Company Ltd. v. Their Workmen (1960):
❖ In this case, the Supreme Court held that registered trade unions are not immune from action
under industrial laws, and strikes or lockouts conducted without adhering to legal procedures
would result in liability.
Comparative Analysis of Rights, Liabilities, and Privileges

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Aspect Rights Liabilities Privileges

Collective Right to negotiate with Liability for illegal Legal recognition as

Bargaining employers on wages, working actions during a bargaining entity
conditions, etc. disputes

Civil & Immunity from certain civil Accountability for Legal protection
Criminal and criminal liabilities for illegal strikes or from tort actions
Immunity lawful actions activities

Union Funds Right to raise and manage Responsible for Protection of funds
funds for union activities misuse or under Section 16
misappropriation

Strikes Right to organize lawful Liability for losses Representation in

strikes due to illegal strikes legal disputes and
tribunals

Privileges of Trade Unions in Legal Proceedings

❖ A significant privilege for registered trade unions under the Trade Unions Act, 1926, is the right
to legal representation in disputes and negotiations with the employer. Trade unions are allowed
to act as representatives of workers in disputes and can participate in proceedings such as
conciliation, arbitration, and adjudication under labor laws. This right extends to both collective
disputes and individual grievances of workers, empowering trade unions to stand on behalf of
workers in both informal and formal negotiations.
❖ Trade unions can also participate in legal proceedings to safeguard the rights of workers, such as
disputes over wage settlements, wrongful termination, and the implementation of welfare
schemes.
Obligations and Responsibilities of Trade Unions
❖ While trade unions enjoy numerous rights and privileges, they also carry significant obligations
under the Act. A trade union is expected to act responsibly, abiding by the legal framework
provided by labor laws. Some key responsibilities include:
Compliance with the Law
❖ A trade union must ensure that all its activities comply with legal requirements. This means
adhering to the procedural rules for collective bargaining, industrial action (like strikes), and
maintaining proper accounts.
❖ Failure to comply with legal standards, such as organizing illegal strikes or engaging in coercive
practices, can lead to penalties under both the Trade Unions Act and the Industrial Disputes
Act, 1947.
Protection of Union Funds
❖ As mentioned earlier, the Act regulates the use of union funds, allowing them to be used only for
legitimate trade union activities. Misuse or misappropriation of funds can lead to cancellation of
registration or legal action against the union and its office bearers.
Judicial Interpretation of Trade Union Rights and Liabilities

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❖ The judiciary plays a critical role in interpreting the Trade Unions Act, 1926, and setting
precedents on the rights, liabilities, and privileges of trade unions. Case law is an essential
aspect of understanding the application of the Act and provides a clearer perspective on how
trade unions must operate within the boundaries of law.
Rohtas Industries Ltd. v. Its Union (1976) – Case Law Recap
❖ The Supreme Court of India in this case set a clear boundary for trade unions by distinguishing
between lawful and unlawful activities. It stated that while trade unions have immunity from
certain civil actions, this immunity does not extend to illegal actions, including strikes that do not
follow proper procedures.
The key takeaways from the judgment include:
❖ Lawful Trade Union Activities: Trade unions are protected by law when conducting legitimate
activities like collective bargaining or calling a lawful strike.
❖ Illegal Activities: Unions are not immune from civil suits if they resort to illegal actions such as
unlawful strikes or protests.
❖ Employer's Right to Compensation: The employer can claim compensation if a union's actions
lead to illegal or disruptive conduct that results in financial loss.
❖ This judgment sets a precedent for balancing the rights of trade unions with their responsibilities
toward maintaining industrial peace.
All India Bank Employees' Association v. National Industrial Tribunal (1962)
❖ In this case, the Supreme Court dealt with the issue of recognition of trade unions and their right
to represent workers in disputes. The Court held that a trade union's registration does not
automatically grant it the right to represent workers in industrial disputes. Recognition of a union
for representation purposes must be conferred by law or by agreement with the employer.
Karachi Gas Co. Ltd. v. Its Workmen (1960)
❖ The Supreme Court held that registered trade unions must comply with the procedural
requirements of the Industrial Disputes Act, 1947 when declaring strikes. Failure to follow
these legal provisions, such as serving proper notice before calling a strike, would render the
strike illegal, and the union may lose its immunity from civil and criminal actions.
International Perspectives on Trade Union Rights
❖ The recognition and regulation of trade unions are not unique to India. In many countries, trade
unions are vital in shaping labor relations and protecting workers' rights. International
conventions, like those adopted by the International Labour Organization (ILO), emphasize the
importance of allowing workers to freely form and join trade unions, negotiate collective
agreements, and participate in industrial actions within the bounds of the law.
ILO Conventions on Trade Union Rights
❖ ILO Convention No. 87 on Freedom of Association and Protection of the Right to Organize
(1948) guarantees the right of workers and employers to form and join organizations of their
choice without prior authorization.
❖ ILO Convention No. 98 on the Right to Organize and Collective Bargaining (1949) provides
protections against anti-union discrimination and interference by employers in union activities.
India, as a member of the ILO, has ratified several conventions, including those relating to collective
bargaining and trade union rights, although certain reservations have been expressed in the context
of government employees.

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Comparative Analysis of Indian Trade Union Law with Other Jurisdictions

In comparison to international standards, the Indian Trade Unions Act, 1926, provides robust
protections for workers' rights to form trade unions and engage in collective activities. However, there
are some differences in the degree of protection offered to unions across different jurisdictions:
❖ In countries like the United States under the National Labor Relations Act, the right to strike
and the framework for union activities are clearly defined, and there is stringent protection
against employer retaliation.
❖ In the United Kingdom, unions have specific rights under the Trade Union and Labour
Relations (Consolidation) Act 1992, which grants legal immunity for actions in furtherance of a
trade dispute but also imposes strict procedural requirements for strikes.
Conclusion
❖ The Trade Unions Act, 1926, plays a crucial role in ensuring that trade unions in India can protect
the interests of workers while balancing these rights with responsibilities. The Act offers legal
protection to registered unions, allowing them to engage in collective bargaining, organize
strikes, and protect workers' rights without the threat of legal repercussions. However, this
protection is not without limits—unions must comply with legal procedures and are held
accountable for illegal activities.
❖ The case law discussed highlights the evolving interpretation of trade union rights, particularly
the distinction between lawful and unlawful activities. Cases like Rohtas Industries Ltd. v. Its
Union (1976) and Karachi Gas Co. Ltd. v. Its Workmen (1960) underline the importance of
adhering to procedural requirements, especially in matters of industrial action.
❖ While the Act offers significant privileges, trade unions also bear liabilities, including maintaining
proper accounts, complying with statutory provisions, and ensuring lawful conduct in industrial
disputes. These checks and balances help maintain industrial harmony and protect the interests
of both workers and employers.
❖ By understanding the interplay of rights, liabilities, and privileges under the Trade Unions Act,
1926, trade unions can navigate their role more effectively in advocating for workers while
complying with the legal framework that governs labor relations in India.

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THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

Introduction
Before 1946, there was no uniformity in employment contracts. Employers drafted individual
contracts with arbitrary terms, exploiting the weaker economic position of workers. The Industrial
Employment (Standing Orders) Act, 1946, was enacted to:
1. Standardize employment conditions.
2. Ensure fairness and transparency.
3. Reduce industrial disputes by creating statutory obligations for employers.
Purpose of the Act
❖ Define and publish employment terms to prevent exploitation.
❖ Regulate service conditions related to recruitment, dismissal, disciplinary actions, and leave.
❖ Promote industrial peace and harmony.
Key Objectives
1. To provide a clear set of rules governing employment terms.
2. To create a legally binding framework that minimizes conflict.
3. To ensure fair treatment for workers.
Application of the Act
❖ Section 1 of the Act provides that the Act shall apply to the industrial establishments (within
India) with an engagement of more than a hundred workmen at present or as noted on any day in
the preceding year unless provided by the appropriate Government for application to any such
industrial establishment – with less than a hundred employees by giving 2 months prior notice.
Exclusion of certain industrial establishments
Sec- 13(B) Act not apply to certain industrial establishment
Any industrial establishment for which following rule are applicable: –
1. Fundamental and supplementary rules
2. Civil service rules (state government employees) classification control service temporary service
rules
3. Civil service temporary service rules
4. Civil service regulations
5. Civilians defence service rules
6. Indian railway establishment code any other rules and regulations notified by the appropriate
Government
If any industry are following the rules they are exempted from this Application 1946
This rule is not applicable to any industrial establishment which is run by a private management.

SEC 2e Industrial establishments

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(i) as defined in clause the Payment of Wages Act, 1936, or

(ii) a factory, or
(iii)a railway or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any
industrial establishment, employs workmen;
Payment of Wages Act :
(a) tramway service, or motor transport service engaged in carrying passengers or goods or both by
road for hire or reward;
air transport service other than such service belonging to or exclusively employed in the military,
naval or air forces of the Union or the Civil Aviation Department of the Government of India;
(b) dock, wharf or jetty;]
(c) inland vessel, mechanically propelled;]
(d) mine, quarry or oil-field;
(e) plantation;
(f) workshop or other establishment in which articles are produced, adapted or manufactured, with
a view to their use, transport or sale;
(g) establishment, in which any work relating to the construction, development or maintenance of
buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation
or the supply of water, or relating to the generation, transmission and distribution of electricity or
any other form of power is being carried on.
Appropriate Government 2(b)
Central Government is deemed to be the Appropriate Government for following
1. Any industry which is under the control of central government
2. Railway administration
3. Major port mine or oil filed
Only for these industries central government is appropriate government. In all other cases state
government is Appropriate government.
2(C): – certifying officer
1. Labour commissioner
2. Regional labour commissioner
3. Any other officer appointed by the appropriate government as a certifying officer.
Standing orders 2(g)
Standing order is set of rules specified in this schedule of the act. It was enacted to prevent
exploitation of the workman. Employer used to give his own conditions
Within the schedule they have specified certain rules or subject matter of the specified set of rules
are
1. Classification of workman (whether he is a temporary or permanent, Badli workman)
2. Working hours, holidays as well as wage rates
3. Shift working
4. Attendance and late coming
5. Procedure in applying leave and holidays

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6. Requirement to enter premises by certain or specific gates and liability to search

7. Closing and opening up industrial establishment
8. Termination of employment and procedure for serving the notice
9. Suspension or dismissal for misconduct or any act or omission
10. Remedies available for a workman in case of unfair labor practices
11. Any other matter which may be prescribed.
Sec – (3) Submission of draft standing orders
Which is nothing but standing order before approval is draft standing order
❖ 3(1): – every existing industry at the time of passing this enactment within a span of 6 months
from the date on passing of which the enactment was passed they have to draft of a standing
order and that must be submit it to certifying officer
❖ 3(2):- the draft standing order should consist of or in connection with every subject matter
specified in the schedule of the Act
❖ Model standing order – in case if the employer has made model standing order so that MSO
should be in conformity with that of draft standing order
❖ 3(3): – draft so shall be accompanied by a statement giving all the particulars of all the workmen
who have been employed in an industrial establishment and should be submit to certifying
officer
❖ 3(4): – in case of more than one employer they should submit joint standing order (in case of
group of employers)
Sec (4): – condition for certification of standing order
What are all the conditions to be fulfilled to get certification
1. Certifying officer will verify whether the provision has made by employer for all the subject matter
mentioned in the schedule
2. Standing order should also in conformity with the provision of this Act
3. Certifying officer have the authority to decide whether to grant the certification and he may also
suggest for modification of the standing order in the form of addition of rules in the draft standing
order and after it is fulfilled, he will certify.
Sec (5): – certification of standing order
❖ When the draft standing order is submitted, he shall forward it a copy to trade union or workman
representative.
❖ If certifying order is satisfied by fulfilling all the conditions u/s -4 then it shall send to trade union
or workman representative after certifying it will sent to trade union
❖ Inviting objections as for the standing order is the purpose to send to workman representatives.
They will have 15 days’ time to send objections from the date on which it is served to workman
representative.
❖ In case if the objectives are sent then certifying officer, he provides opportunities for both the
employer and employee
❖ After opportunity of being heard he will decide whether to grant or not and pass an order.
❖ In case if he feels any modifications, he can suggest and certify it.

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❖ That certification order shall be sent within a span of 7 days after approval is given that order
should be sent to trade union or workman representative
❖ Once standing order is certified then condition of the service of employment of the workman,
❖ Standing order will be bind on employees as well as employer it includes successors, legal heirs.
Sec (6): – Appeals
❖ Any employer, trade union, representation of the workman who may be aggrieved by the order of
certifying officer may make an appeal to the appellant authority within a span of 30 days from the
date of certifying order is received by trade union
❖ The decision of appellant authority shall be final binding on all the parties
❖ Appellant authority has the power to modify or suggest for any additional information
❖ The appellant authority shall send the final copy or order copy within a span of 7 days to the
certifying officer
❖ In case if the appellant authority suggests the modification, it shall send back copy along with
draft standing order with the parties
❖ Appellant authority has the power to modify on its own if it modifies then that copy shall send
back to the parties.
Sec (7):- date of operation of standing order
❖ Every certifying standing order shall come in to operation after the expiry of 30 days from the date
of passing order
❖ If no appeal is preferred from the date of expiry of 30 days it comes in to force
❖ If any appeal is preferred after the expiry of 7 days it shall come in to operation from the date of
appeal order is passed.
Sec (8):- register of standing order
❖ A certified standing order shall be filed in a register maintained by the purpose or Act
❖ At any time or any person may make an application to view the standing order by the certifying
officer along with the prescribed fee.
Sec (9): – posting of standing orders
Posting means displayin
❖ The certifying standing order shall be prominently displayed by the employer in a English
language as well as local language which is understood by the majority of the workman.
❖ He should maintain some special board wherein he should post the certified standing order
❖ Copy of standing order shall be displayed or posted in all the departments where workmen are
employed.
Sec (10): – Duration and modification of standing order
❖ If some modification is required to modify what is the duration?
❖ If there is any agreement between the employee and worker it can be liable to modification until
the expiry of six months from the date on which the standing orders or the last modifications
thereof came into operation.
❖ In case if they need to modify earlier to the period, should take permission from the certifying
officer by sending application.

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❖ They should attach 5 copies of proposed notified standing order and should also attach copy of
agreement between the employer and trade union.
Payment of Subsistence Allowance: Section 10-A
❖ Section 10-A of the Act stipulates for the payment of subsistence allowance by the employer to
a workman who is suspended, pending the investigation/ inquiry of his misconduct, at the rate of
50% for the first 90 days, and 75% for the remaining period if the delay is not attributable to the
workman. The Act also allows an appeal to the Labour Court constituted under IDA-1947 in case
of a dispute relating to such subsistence allowance, whose decision shall be final. Moreover, it
declares that the provisions applicable to a
Sec (11): – power of certifying officer
❖ Every certifying officer and appellant authority shall have all the powers of civil court for the
purpose of this evidence as per sec – 345 and 346 of crpc to consider the certifying officer as civil
court.
Sec 12(A): – temporary application of model standing order
❖ The prescribed model standing order till they get the certification of standing order they should
apply model standing order prescribed by the Act
❖ This provision is not applicable to the temporary application of model standing order to the state
of Gujarat and Maharashtra is a appropriate Government.
Sec -13 – penalties and procedures
❖ It is mandatory on the part of every employer must make a standing order and get approved by
the certifying officer.
❖ In case if the employer fails to submit the draft standing order within the prescribed time limit
then the employer may penalize.
❖ If the notification of standing order is not as per the provision of sec (10) then that is also
punishable.
❖ Penalty is 5000 rupees employer is liable to pay 5000
❖ In case of continuing offence for each day the additional 200/- per day should be paid by the
employer
❖ If the employer contravenes the provision of any of the standing order then he shall be punishable
with fine 100 rupees and in case of continuing offence 25 rupees per each day
❖ Any court which is not below the ranking of metropolitan magistrate or judicial magistrate of
second class is having jurisdiction to entertain this case.
Sec -13(A) interpretation of standing order
❖ When there is any dispute as to the obligation or interpretation to the standing order then that
question may be preferred to any one of the labor court either by the employer or trade union or
representative of workmen.
❖ After receiving the application labor court shall give an opportunity for both the parties then
decide the dispute.
❖ Whatever the decision given by labour court shall be final or binding on the parties.
Delegation of Powers: Section 14-A

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❖ The appropriate Government may delegate its powers under the Act to an Officer/Subordinate
Authority to the Central or the State Government, as the case may be, and subject to such
directions as may be provided under the notification.
Power to make rules: Section 15
The Act empowers the appropriate Government to make rules for the purpose of this Act, in
consultation with representatives of related parties, relating to:
❖ Additional matters to be included in the Schedule & the procedure for modification;
❖ Set out MSOs;
❖ Procedure to be followed by Certifying Officers & appellate authorities;
❖ The fee to be charged for the copies of registered standing orders, and any other matter so
prescribed.
Provided that the rules made by the Central Government be passed/annulled through each House of
Parliament without prejudice to the validity of anything done under it.
Key Case Laws
1. Rajasthan State Road Transport Corporation v. Krishna Kant (1995):
✓ Affirmed the binding nature of standing orders as statutory obligations.
2. Western India Match Co. Ltd. v. Workmen (1973):
✓ Held that standing orders take precedence over private agreements.
3. Associated Cement Companies Ltd. v. P.N. Sharma (1965):
✓ Emphasized the role of Certifying Officers in ensuring fairness.
Practical Significance of the Act
1. Clarity:
✓ Provides workers with a clear understanding of their employment terms.
2. Conflict Resolution:
✓ Reduces disputes by codifying employment conditions.
3. Worker Protection:
✓ Prevents arbitrary dismissal or disciplinary actions.
Challenges and Limitations
1. Limited applicability to establishments with 100 or more workers.
2. Time-consuming certification and modification process.
3. Lack of regular updates to address evolving industrial needs.
Conclusion
The Industrial Employment (Standing Orders) Act, 1946, has been instrumental in bringing
uniformity to employment terms, reducing conflicts, and ensuring fairness in industrial
establishments. Its relevance continues in modern labor relations, despite challenges that call for
periodic revisions to address contemporary demands.

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INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 & THE RULES

CHECKLIST
APPLICABILITY OF THE ACT
❖ Every industrial establishment wherein 100 or more (in many States it is 50 or more)
workmen are employed or were employed on any day of the preceding 12 months.
❖ Any industry covered by Industrial Relations Act, 1946.
❖ Industrial establishment covered by M.P. Industrial Employment (Standing Orders) Act,
1961.
MATTERS TO BE PROVIDED IN STANDING ORDERS
(As per Schedule 1, Sec. 2(g), 3(2) and Rule 2A)
❖ Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or
badlis.
❖ Manner of intimating to workmen periods and hours of work, holidays, pay-days, and wage
rates.
❖ Shift working.
❖ Attendance and late coming.
❖ Conditions of, procedure in applying for, and the authority which may grant leave and holidays.
❖ Requirement to enter premises by certain gates, and liability to search.
❖ Closing and reopening of sections of the industrial establishments, and temporary stoppages
of work and the rights and liabilities of the employer and workmen arising therefrom.
❖ Termination of employment, and the notice thereof to be given by employer and workmen.
❖ Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
❖ Means of redressal for workmen against unfair treatment or wrongful exactions by the
employer or his agents or servants.
ADDITIONAL MATTERS
❖ Service Record – Matters relating to service card, token tickets, certification of service, change
of residential address of workers, and record of age.
❖ Confirmation, age of retirement, transfer, medical aid in case of accident, medical
examination, secrecy, exclusive service.
CONDITIONS FOR CERTIFICATION OF STANDING ORDERS
(As per Schedule and Rule 2A)
❖ Every matter to be set out.
❖ The standing orders to be in conformity with the provisions of the Act.
SUBMISSIONS OF DRAFT STANDING ORDERS
(As per Sec. 3)
❖ Within six months from the date when the Act becomes applicable to an industrial
establishment.

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❖ Five copies of the draft Standing Orders are to be submitted to the Certifying Officer under the
Act.
PROCEDURE FOR CERTIFICATION OF STANDING ORDERS
(As per Sec. 5)
❖ Certifying Officer to forward a copy of draft standing orders to the trade union or in the absence
of union, to the workmen of the industry.
❖ The trade union or the other representatives, as the case may be, are to be heard.
DATE OF OPERATION OF STANDING ORDERS
(As per Sec. 7)
❖ On the date of expiry of 30 days from certification or on the expiry of 7 days from authentication
of Standing Orders.
POSTING OF STANDING ORDERS
(As per Sec. 9)
❖ The text of the standing orders as finally certified shall prominently be posted in English or in
the language understood by a majority of workmen on a special board at or near the entrance
for the majority of workers.
TEMPORARY APPLICATION OF MODEL STANDING ORDERS
(As per Sec. 12-A)
❖ Temporary application of Model Standing Orders shall be deemed to be adopted till the
standing orders as submitted are certified.
PAYMENT OF SUBSISTENCE ALLOWANCE TO THE SUSPENDED WORKERS
(As per Sec. 10-A)
❖ At the rate of fifty percent of the wages which the workman was entitled to immediately
preceding the date of such suspension, for the first ninety days of suspension.
❖ At the rate of seventy-five percent of such wages for the remaining period of suspension if the
delay in the completion of disciplinary proceedings against such workman is not directly
attributable to the conduct of such workman.
PENALTIES
❖ Failure of employer to submit draft Standing Orders: Fine of Rs. 5000 and Rs. 200 for every day
on continuation of offence.
❖ Fine of Rs. 100 on contravention and on continuation of offence Rs. 25 for every day.

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INDUSTRIAL RELATIONS CODE, 2020

Introduction to the Code on Industrial Relations, 2020
❖ As part of the labour reform schemes, the Ministry of Labour and Employment is aiming to
simplify the compliance landscape by introducing 4 new codes that consolidate 29 labour laws.
Out of the 29 existing laws, the Industrial Relations Code, IRC 2020 is replacing 3 regulations: the
Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the
Industrial Disputes Act, 1947.
❖ The Industrial Dispute Act of 1947 was intended to provide workers with a mechanism that would
provide relief against layoffs, downsizing and wrongful termination that is against the letter of the
law. It also sought to foster healthy labour relations by minimizing the scope for illegal strikes and
lockouts and penalizing unfair labour practices. Therefore, it provided a dispute resolution
mechanism, as well as restrictions on layoffs, downsizing and lockouts to ensure that collective
bargaining can take place in a pleasant environment.
❖ The Trade Unions Act of 1926 aimed to provide workers with better working conditions, better
wages, protection against abusive employment, a fair share of company profits, and to this end,
allowed workers to realize their right to form an association, as well as collective negotiation. It
facilitated the organization of workers unions and allowed greater participation of the workforce
in the management of an establishment.
❖ The purpose of the Industrial Employment (standing order) Act,1946, is to have it at the plant level
and other commercial establishments, to regulate industrial relations. This regulates the
conditions of employment, grievances, misconduct etc. of the workers employed in the Industry.
❖ The code streamlines the laws related to trade unions, employment conditions for industries,
and a comprehensive handling of industrial disputes. There is also a higher emphasis on building
a strong employer-employee relationship, creating better working conditions, collective
bargaining, and re-skilling employees.
Key definitions under the Code on Industrial Relations
Definition of workers
❖ The definition of workers has been expanded further to include journalists, sales promotion
employees, and employees who are working as supervisors but are earning less than Rs. 18,000
per month.
❖ An individual can be excluded from the definition of worker if either of the below conditions are
satisfied:
❖ The person is employed mainly in a managerial or administrative capacity; or
❖ The person is employed in a supervisory capacity drawing wage exceeding Rs.18,000 per month
or an amount as may be notified by the Central Government from time to time;
Definition of industries
The definition of industries has been amended, to exclude the following categories of workplaces:
❖ Organisations offering charity, social, or philanthropic service
❖ Organisations that are under the control of the Government specifically dealing with defence
research, atomic energy, and space exploration
❖ Organisations specifically excluded by the central government, if any
Definition of industrial dispute

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1. Any differences of opinion between employees and employers because of employee

retrenchment, dismissal, or termination.
2. The worker can appeal this with the governing body (also called the industrial tribunal) within 45
days from the date of retrenchment or termination.
Definition of fixed term employment
Any form of employment with a written contract for a specific duration is considered fixed term
employment. The new definition proposes social security benefits for fixed term employees,
including:
1. The working hours, salary or wage, benefits and allowances should be the same for fixed term
employees as for the other full-time workers of the organisation.
2. The fixed term employees are also eligible for all the statutory benefits enjoyed by the regular
employees, even if the duration of employment is less than the recommended duration to be
eligible for statutory benefits.
3. The fixed term employees will also be eligible for gratuity if the length of the contract extends to
a year.
Key provisions of the Code on Industrial Relations
Standing orders
Applicability
1. Industrial Relations Code 2020 states that the provisions regarding standing orders will apply to
the establishments that have had three hundred or more employees on any day in the preceding
twelve months or a year.
1. For all organisations employing a minimum of 300 employees, standing orders should be passed
during the following topics:
✓ How the workers are classified according to employment type (permanent, fixed term,
contractors, temporary workers, and apprentices).
✓ The process that the organisation is going to follow to communicate changes to the
employees including work period, hours of work, pay days and wage rates, shifts, attendance,
and rules for late coming.
✓ Conditions, rules, and approving authorities for leaves and holidays.
✓ Rules for termination of employment, and communication of the news to employees,
extending to suspensions of work because of misconduct.
✓ Remedy measures for employees against unfair treatment and exactions by the employer.
Where an employer adopts a model standing order of the Central Government with respect to
matters relevant to the employer's industrial establishment or undertaking, then such model
standing order shall be deemed to have been certified and the employer shall forward the
information in this regard to the concerned certifying officer in the manner as may be prescribed
Grievance handling committee
Any employer with 20 or more employees has to have one or more grievance handling committees.
The IRC has incorporated new regulations that the previous regulation did not address. The panel
cannot be more than 10 people, and should have equal and fair representation from employers,
employees, and women employees.

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Power of government to reject or modify the tribunal award

❖ Industrial Relations Code 2020 provides that the government may, in certain circumstances,
postpone enforcement of arbitral awards made by the tribunals for public reasons that threaten
the national economy or social justice.
❖ The Industrial Dispute Act,1947 contained similar provisions. In 2011, the Madras High Court
(confirming a 1997 ruling by the Andhra Pradesh High Court) overturned these provisions on
constitutional grounds, ruling that the power of the executive branch to refuse or change the
execution of an arbitral award ruled it to be the executive branch makes it possible to appeal the
decision of the tribunal and thus violates the separation of powers between the executive and
judiciary, which is part of the basic structure of the constitution.
Strikes and lockouts
❖ No employee can strike without reporting a strike to the employer 14 days in advance. This
notification is valid for a maximum of 60 days.
❖ Likewise, no employer can lockout one of its employees without giving 14 days notice of the
lockout. This notification is valid for a maximum of 60 days.
In addition, Industrial Relations Code 2020 prohibits strikes and lockouts:
(i) during and up to seven days after arbitration; and
(ii) during and up to sixty days after or before trial in a court or arbitrator
(iii) during any period in which a settlement or arbitration award is in effect.
Employers are required to report to the relevant government and arbitration officer within five days
of receiving/announcing a strike/lockout.
Employee layoffs and retrenchment
1. The code defines layoffs as the inability of an employer to continue giving employment—due to
shortage of resources, materials or power, breakdown of machinery or natural calamities—for
employees in their payroll.
2. The code defines retrenchment as the employer deciding to terminate the services of the
employee for any reason excluding disciplinary action. Both layoff rules and retrenchment rules
do not apply to organisations with fewer than 50 employees.
3. The code has also taken a stricter stand on the severance wages for employees laid off or
retrenched. If an employee has completed one year of continuous service with the organisation,
50% of basic wages and dearness allowance has to be paid if the employee is laid off. For
retrenchment, the employee should be given a one-month notice period, or paid an equivalent
pay for the same period along with 15 days of wages for every year of continuous service.
For the benefit of the employers, the regulations around layoffs and retrenchment have been
simplified. Earlier, employers with more than 100 employees had to seek permission from the
appropriate government to lay off or retrench employees, and now the threshold has been increased
to 300 employees.
Notice For Retrenchment: In previous Act, One month’s notice was required (industry employing
less than 50 workers), 3 Months’ notice (Industry employing not less than 100 workers) in writing
indicating the reasons for retrenchment.
In new code One month’s notice is required (or equivalent wages) and 15 days’ wages for every year
of continuous service.

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Employee reskilling
To support the retrenched employees, the industrial relations code has allocated funds for
employees to upskill themselves. Employees can get wages equivalent to 15 days of their last drawn
salary. Employers should transfer the funds to the employees within 45 days from employee
retrenchment.
Trade Union: negotiating union & negotiating council
❖ The Industrial Relations Code 2020 provides a new concept for negotiating trade unions or
negotiating councils in an industrial company. According to the stated provision:
❖ In the case of a single union in an industrial company, the employer recognizes that union as the
sole bargaining union of the workers.
❖ If there are several unions, the union is recognized by the employer as a bargaining union with
51% of the employees in the industrial company’s model directory.
❖ In the case of several trade unions, none of which fulfil the above-mentioned 51% membership
criteria, the employer forms a negotiating council made up of representatives of these registered
trade unions, who are supported by at least 20% of the total workforce of the industrial company
.
❖ Industrial Relations Code 2020 also provides that if the central / state government believes that
there is a need for a union or confederation to be recognized as a central / state union, that
government may recognize the trade unions alike.
SUMMARY: KEY HIGHLIGHTS OF THE CHANGES MADE
INDUSTRIAL DISPUTES
1. The definition of the term “industry is modified in line with the Apex court verdict in
Bangalore Water Supply and Sewage Board Case.
2. Domestic services and the Institutions engaged in charitable social or philanthropic service are
excluded from the term “industry".
3. Termination of the service of a worker as a result of completion of tenure of fixed term
employment is now not included under retrenchment.
4. Concerted mass casual leave by 50% or more workers be construed as strike.
5. The total number of members of the Grievance Redressal Committee increased from six to ten.

6. Notice shall not be required for effecting change in case of emergent situation requiring change
of shift or shift working otherwise than (except in accordance with standing orders in
consultation with Grievance Redressal Committee).
7. Prohibits strikes and lockouts in any industrial establishment without giving notice of 14 days.
8. Notice of strike or lockout validity is amended from 6 weeks to 60 days.
9. Wilful go slow shall be construed as unfair labour practice on the part of worker.
10. Time period for filing a grievance application is reduced from three years to one year.
11. Time period for raising industrial dispute before the conciliation officer is reduced to 2 years from
3 years.

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12. Factories mines or plantations shall obtain permission from the appropriate Govt. , for
retrenchment or lay off if 300 or more workers.
13. Only tribunal has the power to entertain any suit in relation to dispute concerning trade unions
and the members
14. The employer shall contribute an amount equivalent to 15 days wages for every retrenched
worker towards the workers reskilling fund.
TRADE UNION
1. Special provision introduced for recognition of trade union.
2. If more than one trade unions are functioning the trade union having 51% or more workers
support shall be recognized as sole negotiating union.
3. If more than one trade unions are functioning and if no trade union is having 51% or more
workers support negotiating council to be formed(i.e., 1 representative for each 20% members.
4. Only one third of the total number of office bearers of the union or five office bearers whichever
is lower can be from outside the industry with which the union is connected.
STANDING ORDERS
1. Chapter IV concerning the Standing orders shall apply to the industrial establishment
in which 300 or more workers are employed (currently it is 100 or more)
2. Central Government shall draft model standing orders (currently both central and state Govt.,
has this power).
3. The central Govt., would be the appropriate Govt., for telecommunication insurance and banking
companies.
4. Employers shall consult the trade unions or negotiating union council before submitting the draft
standing orders to the certifying officer.
5. Certifying officer to look in to the fairness or reasonableness of the provisions of any standing
orders.
6. Certifying officer shall certify the standing orders within 60 days and in case of failure to certify
within the time limit then it will be deemed to have been approved.
7. Standing orders already certified shall continue to be in force.
OTHER CHANGES
1. Empowers the app Govt., to appoint officers for holding enquiry and impose penalty in certain
contraventions punishable with fine up to Rs. 50000.
2. Central Govt., would be the appropriate Govt., for metro railways.
3. The Central Government will be the appropriate Govt., for the establishment of contractors
serving to the establishment undertakings etc., of Central Govt.,
4. To provide penalty for different types of violations commensurate with gravity.
5. There is an increase in Penalty in case of violation of the provisions of this code.
6. Provision for compounding of offence is introduced

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KEY IMPORTANT CHANGES:

Earlier Regulations New Regulations

No definitions were provided for fixed term All forms of employment with a written
employment. contract for a specific timeframe are
Workforce were largely referred to as workmen classified as fixed term employment.
in The Industrial Dispute Act, 1947. The term, 'workmen' is now renamed as
'worker'.

Organisations with more than 100 employees Establishments with less than 300
had to seek approval from the government to lay employees can lay-off/ retrench/ close
off or retrench their employees. without the government's approval.

No concept of worker re-skill funds was Employer is liable to pay an amount

introduced. equivalent of 15 days of last drawn wages
to retrenched employees.

Impact of non-compliance

Offence Penalty

Violation of provisions under lay-off, For first time defaulters, it is a fine of up to Rs.10
retrenchment, closure of lakhs.
establishment. In case of subsequent offences, it will attract a fine
up to 20 lakhs or imprisonment up to 6 months or
both.

Short Title Threshold Requirement

for
Applicability

Works Committee 100 or more Constitution of Works Committee consisting of

workers representatives of employer and workers

Grievance 20 or more Constitution of Grievance Redressal Committees for

Redressal Committee workers consisting of equal number of members representing
employer and workers

Preparation of draft 300 or more Employer must prepare draft Standing Orders within a
Standing Orders workers period of six months from the date of commencement
by Employer of this Code

Notice of change 300 or more Employers who propose to effect any change in
in Conditions of workers conditions of service applicable to any worker in
Service

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respect of any matter under the Third Schedule shall

affect such change by giving 21 days’ notice to workers

Duty of an 50 or more It shall be the duty of every employer for the purposes of
employer to maintain workers this Chapter to maintain a muster roll and to provide for
muster rolls of making of entries therein by workers who present
workers themselves for work

Contribution to Contribution of the employer of an industrial

Worker Re-Skilling establishment that is equal to fifteen days wages last
Fund drawn by the worker immediately before
retrenchment

The Factories Act, 1948

The Factories Act, 1948 is an important piece of legislation aimed at regulating labour in factories
with the goal of ensuring adequate working conditions, health, safety, and welfare of workers.
1. The Factories Act, 1948: Introduction and Objective
The Factories Act, 1948 was enacted to regulate the conditions in which workers operate in factories
and to ensure their safety, health, and welfare. The Act applies to any factory employing 10 or more
workers if power is used, or 20 or more workers if power is not used.
The key objectives of the Act are:
❖ To ensure the health, safety, and welfare of workers.
❖ To regulate the working hours and conditions of employment.
❖ To prevent exploitation of workers and ensure a conducive work environment.

2. Key Definitions: Section 2 of The Factories Act, 1948

Section 2 of the Act defines several important terms used throughout the legislation.
Section 2(m): "Factory"
❖ A "factory" is defined as any premises where:
✓ 10 or more workers are working and power is used for the manufacturing process.
✓ 20 or more workers are working without the use of power in the manufacturing process.
❖ It excludes places where only administrative, research, or sales-related work is carried out.
Section 2(k): "Manufacturing Process"
❖ The Act defines "manufacturing process" as any process related to the production of goods,
including:
✓ Making, altering, repairing, ornamenting, finishing, packing, or breaking up of products.
✓ Generating or distributing power.
✓ Pumping water or other liquids.
Section 2(n): "Occupier"

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❖ "Occupier" refers to the person who has ultimate control over the affairs of the factory. In the
case of a company, the board of directors or any individual authorized by them can be considered
the occupier.
Section 2(l): "Worker"
❖ A "worker" is a person employed, directly or indirectly, to perform any manual, supervisory,
technical, or clerical work in a factory.
3. Health Provisions under The Factories Act, 1948 (Sections 11-20)
The health provisions are provided under Chapter III of the Act, which primarily deals with ensuring
that factories maintain hygienic working conditions and safeguard workers' health.
Section 11: Cleanliness
❖ Objective: To ensure a clean environment in the factory.
❖ Provisions:
✓ Factories must be kept clean, and accumulated dirt must be removed daily.
✓ Floors should be cleaned regularly by sweeping or washing with water.
✓ Effective drainage of waste and provision for cleaning of ceilings and walls should be
maintained.
Section 12: Disposal of Wastes and Effluents
❖ Objective: To manage waste and effluents in a manner that does not harm the workers' health.
❖ Provisions:
✓ Factories must make suitable arrangements for the treatment and disposal of waste and
effluents.
✓ Authorities may prescribe further methods for proper disposal.
Section 13: Ventilation and Temperature
❖ Objective: To maintain adequate ventilation and reasonable temperature in the factory.
❖ Provisions:
✓ Adequate circulation of fresh air must be ensured.
✓ Temperature must be controlled by measures such as insulation, ventilation, or mechanical
cooling to avoid discomfort.
Section 14: Dust and Fume Control
❖ Objective: To protect workers from inhaling harmful dust and fumes.
❖ Provisions:
✓ Factories must install effective exhaust systems to remove dust and fumes that can be
injurious to health.
✓ Local exhaust systems must be employed near the sources of emission.
Section 15: Artificial Humidification
❖ Objective: To regulate artificial humidification in factories.
❖ Provisions:
✓ Humidity must be controlled to prevent adverse health effects.

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✓ Water used for humidification must meet prescribed purity standards.

Section 16: Overcrowding
❖ Objective: To prevent overcrowding and ensure sufficient space for workers.
❖ Provisions:
✓ A factory should maintain at least 14.2 cubic meters of space per worker to avoid
overcrowded conditions.
Section 17: Lighting
❖ Objective: To ensure adequate and suitable lighting in the factory.
❖ Provisions:
✓ Factories must provide both natural and artificial lighting to ensure visibility.
✓ Glare and shadow, which can cause discomfort or accidents, should be minimized.
Section 18: Drinking Water
❖ Objective: To provide clean drinking water to all workers.
❖ Provisions:
✓ Drinking water must be provided at convenient and accessible locations within the factory.
✓ Drinking water points must be clearly marked and separate from areas prone to
contamination.
Section 19: Latrines and Urinals
❖ Objective: To provide adequate sanitation facilities.
❖ Provisions:
✓ Sufficient latrines and urinals must be provided, kept clean, and located at convenient
places.
✓ Separate facilities must be made available for male and female workers.
Section 20: Spittoons
❖ Objective: To maintain hygiene and prevent the spread of diseases.
❖ Provisions:
✓ Factories must provide sufficient spittoons at convenient locations.
✓ Workers must be instructed to use spittoons, and anyone failing to use them may be fined.
4. Safety Provisions under The Factories Act, 1948 (Sections 21-41)
The safety provisions are enshrined under Chapter IV of the Act, ensuring that factories take
appropriate measures to protect workers from industrial hazards.
Section 21: Fencing of Machinery
❖ Objective: To prevent workers from being injured by machines in motion.
❖ Provisions:
✓ Dangerous parts of machinery must be securely fenced.
✓ The fencing must be maintained in proper condition and should not be removed while the
machine is in use.
Section 22: Work on or Near Machinery in Motion

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❖ Objective: To ensure safety while workers are working on moving machinery.

❖ Provisions:
✓ Work near moving parts of machinery must only be performed by qualified adults under strict
supervision.
✓ Machinery must be stopped when possible, or proper precautions should be taken when
work is done on machinery in motion.
Section 23: Employment of Young Persons on Dangerous Machines
❖ Objective: To prevent the employment of young persons on dangerous machinery without
training.
❖ Provisions:
✓ Young persons should not work on dangerous machines unless they have been fully
instructed and trained.
✓ They must work under strict supervision.
Section 24: Devices for Cutting off Power
❖ Objective: To provide for quick power shutdown in emergencies.
❖ Provisions:
✓ Factories must have proper devices to quickly cut off power in case of an emergency.
✓ Striking gears or other devices should be accessible to quickly halt machines.
Section 27: Prohibition of Employment of Women and Children near Cotton Openers
❖ Objective: To safeguard women and children from harmful cotton dust.
❖ Provisions:
✓ The employment of women and children near cotton openers, where harmful particles are
released, is prohibited.
Section 34: Excessive Weights
❖ Objective: To prevent workers from lifting excessive weights.
❖ Provisions:
✓ Workers should not be required to lift weights beyond the prescribed limit, ensuring their
safety from physical strain and injury.
Section 38: Precautions Against Fire
❖ Objective: To prevent and control fires in the factory.
❖ Provisions:
✓ Adequate fire-fighting equipment must be installed in factories.
✓ Workers should be trained in handling fire equipment, and escape routes must be clear and
easily accessible.
5. Relevant Case Law: Labourers Working on Salal Hydro Project v. State of Jammu &
Kashmir (1983)
This case is a landmark decision where the Supreme Court of India emphasized the enforcement of
labour laws and protections under the Factories Act, 1948.
Facts of the Case:

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❖ Laborers working on the Salal Hydro-Electric Project were exposed to extremely hazardous
working conditions, with no adequate safety measures in place.
❖ Public interest litigation (PIL) was filed, drawing attention to the appalling working conditions of
these laborers, demanding that the government ensure compliance with the Factories Act and
other labour laws.
Judgment:
❖ The Supreme Court held that the right to life under Article 21 of the Indian Constitution also
includes the right to work in safe and healthy conditions.
❖ The Court ordered the State of Jammu & Kashmir and the Central Government to ensure that the
workers were provided with adequate safety equipment, health care, and other facilities as
mandated under the Factories Act, 1948.
❖ The judgment emphasized that the government has a duty to protect the health and safety of
laborers, particularly in public projects.
Impact:
❖ This case highlighted the role of the judiciary in enforcing labour laws, especially in cases where
workers’ health and safety are compromised.
❖ It also underscored the importance of judicial intervention in expanding the scope of Article
21 to cover labour rights.
Conclusion
❖ The Factories Act, 1948 is an essential law aimed at protecting workers' rights to health and
safety in factories. It provides a detailed framework for regulating working conditions, ensuring
cleanliness, ventilation, waste management, and safety from machinery and other industrial
hazards.

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THE FACTORIES ACT, 1948: WELFARE AND WORKING CONDITIONS

The Factories Act, 1948 is designed to ensure the health, safety, welfare, and better working
conditions for workers employed in factories. The welfare provisions under the Act cover various
aspects that safeguard the interests and well-being of workers, while the working condition
provisions deal with hours of work, rest intervals, and employment standards.
This guide provides detailed notes on Welfare Provisions (Chapter V) and Working
Conditions (Chapter VI) under the Factories Act.
1. Welfare Provisions under The Factories Act, 1948 (Sections 42–50)
The Welfare provisions in the Factories Act aim to improve the working environment for laborers and
ensure that they have access to necessary amenities for a decent life. These provisions are detailed
under Chapter V of the Act.
Section 42: Washing Facilities
❖ Objective: To ensure cleanliness and hygiene.
❖ Provisions:
✓ Factories must provide suitable and adequate washing facilities for workers.
✓ These facilities must be separate for male and female workers, be kept clean, and located
conveniently.
Section 43: Facilities for Storing and Drying Clothes
❖ Objective: To provide facilities for workers to store and dry their clothes.
❖ Provisions:
✓ Where workers are required to work in wet conditions, the factory must provide suitable
facilities for drying their wet clothes.
✓ Adequate arrangements must also be made for storing clothing during working hours.
Section 44: Facilities for Sitting
❖ Objective: To ensure workers, particularly those required to stand during work, have sitting
arrangements for rest.
❖ Provisions:
✓ Factories must provide seating facilities for workers who are required to work in a standing
position for long hours.
✓ These seats must allow them to take rest when the nature of work permits.
Section 45: First-Aid Appliances
❖ Objective: To provide immediate medical help in case of accidents or injuries.
❖ Provisions:
✓ Every factory must maintain a first-aid box or cupboard equipped with the prescribed
contents.
✓ The number of first-aid boxes must be in proportion to the number of workers, and each box
must be easily accessible.
✓ In factories with more than 500 workers, an ambulance room must be provided with the
necessary equipment and trained personnel.
Section 46: Canteens

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❖ Objective: To ensure proper food facilities in large factories.

❖ Provisions:
✓ In factories with more than 250 workers, the occupier must provide a canteen for the
workers.
✓ The government can make rules regarding:
➢ The location, standards, and cleanliness of the canteen.
➢ The charges for the food served.
➢ Employment of workers in the canteen.
Section 47: Shelters, Restrooms, and Lunchrooms
❖ Objective: To ensure restrooms for workers who bring their own food or need a break during work.
❖ Provisions:
✓ Factories with more than 150 workers must provide shelters, restrooms, and lunchrooms.
✓ These rooms must be kept clean, properly ventilated, and suitably furnished.
Section 48: Creches
❖ Objective: To provide childcare facilities for working women.
❖ Provisions:
✓ Factories with more than 30 women workers must provide a creche for the care of young
children (below the age of 6).
✓ The creche must be well-ventilated, maintained in a clean state, and equipped with adequate
care facilities.
Section 49: Welfare Officers
❖ Objective: To ensure effective supervision of welfare measures.
❖ Provisions:
✓ In factories with more than 500 workers, the occupier must appoint a Welfare Officer to
ensure that welfare facilities are properly provided.
✓ The duties, qualifications, and conditions of service for the Welfare Officer may be prescribed
by the government.
Section 50: Power to Make Rules
❖ Objective: To give power to the government to make rules to supplement the welfare provisions.
❖ Provisions:
✓ The State Government can make rules for the implementation of welfare provisions under
Sections 42–49.
2. Working Conditions under The Factories Act, 1948 (Sections 51-66)
Chapter VI of the Factories Act deals with Working Conditions, including regulation of working
hours, rest intervals, and restrictions on child and female labor. These sections ensure that the
working hours are reasonable, that there are adequate rest periods, and that workers are not
exploited.
Section 51: Weekly Hours
❖ Objective: To regulate the maximum number of working hours per week.
❖ Provisions:

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✓ No adult worker can be required or allowed to work in a factory for more than 48 hours a
week.
Section 52: Weekly Holiday
❖ Objective: To ensure workers get one day off each week.
❖ Provisions:
✓ Every worker must be allowed a weekly holiday on the first day of the week (Sunday) unless
otherwise permitted by the State Government.
✓ Substituted holidays can be allowed if notified in advance.
Section 53: Compensatory Holidays
❖ Objective: To ensure workers are compensated with holidays if they miss their weekly rest day.
❖ Provisions:
✓ If a worker is deprived of a weekly holiday, they are entitled to a compensatory holiday within
two months.
Section 54: Daily Hours
❖ Objective: To regulate the daily working hours.
❖ Provisions:
✓ No adult worker can work for more than 9 hours in a day.
Section 55: Intervals for Rest
❖ Objective: To provide rest breaks during working hours.
❖ Provisions:
✓ Workers must receive a rest interval of at least half an hour after every five hours of work.
✓ The total work period, including rest intervals, should not exceed 10.5 hours a day.
Section 56: Spread Over
❖ Objective: To ensure a reasonable spread of work hours.
❖ Provisions:
✓ The working hours of an adult worker should be spread over not more than 10.5 hours in a
day, including rest intervals.
Section 57: Night Shifts
❖ Objective: To regulate workers' shift timings and ensure continuity.
❖ Provisions:
✓ If workers work on a night shift, their workday is considered to extend into the next calendar
day, ensuring continuity of shifts.
Section 58: Prohibition of Overlapping Shifts
❖ Objective: To avoid confusion in shift allocation.
❖ Provisions:
✓ No worker can be required to work in two different shifts within a 24-hour period.
Section 59: Overtime
❖ Objective: To regulate overtime and ensure fair compensation.
❖ Provisions:

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✓ If a worker works beyond 9 hours a day or 48 hours a week, they are entitled to overtime
wages at the rate of twice their ordinary wage.
Section 60: Double Employment
❖ Objective: To prevent workers from being employed in multiple jobs during the same day.
❖ Provisions:
✓ A worker cannot be employed in any factory on the same day if they have already worked in
another factory.
Section 61: Notice of Periods of Work
❖ Objective: To regulate work hours and ensure proper scheduling.
❖ Provisions:
✓ Factories must display notices of working hours and the periods for work for every worker.
Section 62: Register of Adult Workers
❖ Objective: To maintain accurate records of workers and their shifts.
❖ Provisions:
✓ A register containing the details of adult workers, their shifts, and attendance must be
maintained in the factory.
Section 63: Work on Machines
❖ Objective: To prevent extended work on dangerous machines without rest.
❖ Provisions:
✓ No adult worker can be required to work continuously on dangerous machines without
adequate breaks or rest periods.
Section 66: Restriction on Employment of Women
❖ Objective: To protect women workers from hazardous conditions.
❖ Provisions:
✓ Women workers cannot be employed between 7 PM and 6 AM, though this may be relaxed by
the State Government in certain cases.
✓ The government can also restrict the employment of women in specific hazardous industries.
3. Relevant Case Law: Shriram Food & Fertilizer Industries v. Union of India (1986)
This case is a landmark decision on public safety and welfare in industrial operations, with direct
implications for worker safety and well-being in factories.
Facts of the Case:
❖ The Shriram Food & Fertilizer Industries, located in Delhi, was engaged in manufacturing
chemicals and fertilizers. Following a leak of Oleum gas from the factory in 1985, a public
interest litigation (PIL) was filed by M.C. Mehta demanding the closure of the plant due to the
environmental hazard it posed and its impact on public safety.
Judgment:
❖ The Supreme Court, in its decision, expanded the scope of Article 21 (Right to Life), stating that
the right to life also includes the right to live in a clean and safe environment.

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❖ The Court ordered the factory to adopt safety measures, improve working conditions, and
ensure that such industrial hazards are mitigated to protect the lives of workers and the public.
❖ The judgment emphasized that industries must bear absolute liability for harm caused by
hazardous activities, even without fault (i.e., the “absolute liability” principle).
Impact:
❖ This case reinforced the importance of industrial safety and the responsibility of factory owners
to ensure the welfare of both workers and the public.
❖ It established the concept of absolute liability, which means that hazardous industries must
ensure utmost safety and cannot evade responsibility for accidents, even if all precautions were
taken.
Conclusion
The Welfare and Working Conditions provisions under the Factories Act, 1948 play a crucial role
in safeguarding the well-being of workers in factories. They ensure that workers have access to clean,
hygienic, and safe working environments, along with fair working hours and adequate rest periods.
Understanding these provisions, as well as key case law such as Shriram Food & Fertilizer
Industries v. Union of India (1986), is critical for the EPFO APFC Exam, which focuses on labor
welfare, worker rights, and the regulation of working conditions.

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THE FACTORIES ACT, 1948: WORKING HOURS AND EMPLOYMENT OF YOUNG PERSONS, WITH
CASE LAW
The Factories Act, 1948 was enacted to regulate the working conditions in factories, with the
objective of ensuring the health, safety, welfare, and protection of workers, particularly vulnerable
groups like children and adolescents.
1. Working Hours under The Factories Act, 1948
General Overview
The Act aims to balance factory efficiency and worker welfare by regulating the maximum working
hours and providing fair compensation for overtime, mandatory rest intervals, and sufficient breaks
between shifts. The provisions regarding working hours primarily deal with adult workers, i.e.,
persons who have completed their 18th year of age.
Key Sections Related to Working Hours
Section 51: Weekly Hours
❖ Provision: No adult worker is allowed to work more than 48 hours in any week.
❖ Objective: To set a cap on the number of hours worked per week, ensuring that workers are not
overburdened.
Section 52: Weekly Holidays
❖ Provision: Workers must be provided with at least one day off every week. This is generally
observed on Sundays.
❖ Substitution: If the worker works on the weekly day off, a compensatory holiday should be
granted within the same month.
❖ Objective: To ensure workers have proper rest and recovery after every workweek.
Section 53: Compensatory Holidays
❖ Provision: If workers are deprived of their weekly rest, they must be compensated with a holiday
within two months.
❖ Objective: To ensure workers do not lose their mandated rest days.
Section 54: Daily Hours
❖ Provision: No adult worker shall work for more than 9 hours a day.
❖ Objective: To limit the maximum number of working hours per day to avoid fatigue and health
risks.
Section 55: Intervals for Rest
❖ Provision: Workers are entitled to a rest interval of at least half an hour after five hours of
continuous work.
❖ Objective: To provide workers sufficient breaks during their shifts to avoid continuous physical
and mental strain.
Section 56: Spread Over
❖ Provision: The total number of working hours, including rest intervals, should not exceed 10.5
hours in a day.

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❖ Objective: To limit the overall duration workers spend in the factory, thus maintaining a balanced
work-life schedule.
Section 57: Night Shifts
❖ Provision: Workers engaged in night shifts may continue their work into the following day, but
their total working hours should not exceed the permitted maximum for any given day.
❖ Objective: To accommodate shifts that extend into the next day while adhering to working hour
restrictions.
Section 58: Prohibition of Overlapping Shifts
❖ Provision: No worker should be required to work in two shifts within the same day, ensuring
proper time for rest and recuperation.
❖ Objective: To prevent excessive working hours and protect workers from being overexerted
across multiple shifts.
Section 59: Overtime
❖ Provision: Workers must be paid overtime at double the ordinary rate if they work beyond the
normal 9 hours a day or 48 hours a week.
❖ Objective: To ensure fair compensation for any extra hours worked, encouraging employers to
limit overtime.
Section 60: Prohibition of Double Employment
❖ Provision: No adult worker shall work in more than one factory on the same day.
❖ Objective: To prevent overwork and protect workers from being exploited by employers through
multiple jobs in a single day.
Section 61: Notice of Periods of Work
❖ Provision: The factory occupier must display a notice showing the periods of work for all workers.
❖ Objective: To maintain transparency and ensure that the workers' shifts are predefined and
adhered to.
Section 62: Register of Adult Workers
❖ Provision: The factory must maintain a register of all adult workers, recording their name, hours
of work, and shifts.
❖ Objective: To ensure compliance with the Act and keep track of working hours.
Section 63: Work on or near Machinery in Motion
❖ Provision: Special provisions are made for workers employed near dangerous machinery,
ensuring additional safety and limiting their working hours.
❖ Objective: To reduce the risks associated with operating hazardous machinery over extended
periods.
2. Employment of Young Persons
The Employment of Young Persons provisions focus on protecting children and adolescents from
exploitative and hazardous employment. The Act strictly regulates their working hours, the nature of
the work they can engage in, and the conditions of their employment.
Key Definitions:
❖ Child: A person who has not completed 14 years of age.

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❖ Adolescent: A person who has completed 15 years but has not yet reached 18 years of age.
❖ Young Person: Both children and adolescents.

Key Sections Related to Employment of Young Persons

Section 67: Prohibition of Employment of Young Children
❖ Provision: The employment of children below the age of 14 years in any factory is strictly
prohibited.
❖ Objective: To prevent child labour and ensure children are not exposed to hazardous working
environments.
Section 68: Non-adult Workers to Carry Tokens
❖ Provision: Adolescents must carry a certificate of fitness provided by a certifying surgeon to
work in a factory.
❖ Objective: To ensure only physically and medically fit adolescents are employed in factories.
Section 69: Certificate of Fitness
❖ Provision: Adolescents must obtain a medical fitness certificate to ensure they are suitable for
the work they are undertaking.
❖ Objective: To protect young workers from tasks that might endanger their health due to their age
or physical development.
Section 70: Effect of Certificate of Fitness
❖ Provision: Adolescents certified fit for adult work can work under adult working hour provisions.
Those certified for child work are restricted to child-specific hours and tasks.
❖ Objective: To regulate the employment of adolescents in accordance with their physical
capacity.
Section 71: Working Hours for Children
❖ Provision:
✓ Children between 14–18 years can work for a maximum of 4.5 hours a day.
✓ They are not allowed to work at night (between 10 PM and 6 AM).
✓ A rest interval of at least half an hour must be provided after 2.5 hours of work.
❖ Objective: To limit the working hours of children to protect their health, ensure education, and
prevent exploitation.
Section 72: Notice of Periods of Work for Children
❖ Provision: The factory must display a notice showing the periods of work assigned to child
workers.
❖ Objective: To maintain transparency and accountability regarding child labor.
Section 73: Register of Child Workers
❖ Provision: The occupier must maintain a register of child workers, detailing their age, working
hours, and the nature of work.
❖ Objective: To regulate and monitor the employment of children in factories.
Section 74: Hours of Work for Adolescents

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❖ Provision: Adolescents certified for adult work can work under adult provisions (up to 48 hours
a week and 9 hours a day).
❖ Objective: To regulate the working hours of adolescents, ensuring their well-being while allowing
them to work within legal limits.
Relevant Case Law: M.C. Mehta v. State of Tamil Nadu (1996)
Background:
❖ This case was a Public Interest Litigation (PIL) filed by M.C. Mehta in the Supreme Court,
highlighting the exploitation of child labor in hazardous industries like matchstick factories
in Sivakasi, Tamil Nadu.
❖ The petition raised concerns about the large number of children employed in unsafe working
conditions and sought enforcement of the Child Labour (Prohibition and Regulation) Act,
1986, along with provisions under the Factories Act.
Key Issues:
1. Whether children below the age of 14 years can be employed in hazardous industries.
2. Whether the government is taking sufficient measures to ensure the protection of children
from such hazardous work.
Judgment:
❖ The Supreme Court banned the employment of children below 14 years in hazardous industries,
reaffirming the right of children to a safe and healthy environment under Article 21 of the
Constitution.
❖ The Court directed the setting up of the Child Labour Rehabilitation Welfare Fund, to which
employers violating child labor laws must contribute.
❖ The judgment emphasized that the State must provide free and compulsory education for
children removed from hazardous employment.
❖ The ruling also mandated the appointment of more inspectors to enforce labor laws effectively.
Impact:
❖ The M.C. Mehta case was pivotal in enforcing child labor laws and ensuring the protection of
children working in dangerous industries.
❖ The judgment laid the groundwork for stricter monitoring and enforcement of the Factories
Act and Child Labour laws, pushing the State to take proactive measures to rehabilitate affected
children.
The Contract Labour (Regulation and Abolition) Act, 1970
Objective of the Act
1. Regulate employment of contract labour.
2. Provide better working conditions and statutory benefits.
3. Prevent exploitation of contract labour by unscrupulous employers.
4. Abolish contract labour where it is exploitative or unnecessary.
Scope and Applicability
1. Applicable to:
❖ Establishments and contractors employing 20 or more workers in any preceding 12 months.

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❖ Applies to all industries, contractors, and establishments unless exempted.

2. Exemptions:
❖ Work of a casual or intermittent nature. The Act states that a work is deemed to be of intermittent
nature if it is performed for less than 120 days in the preceding twelve months or it is of non-
seasonal character and is performed for less than 60 days in a year.
❖ The Act is not applicable to a person who is appointed in an advisory or managerial capacity.
❖ Exemptions granted by the government for specific establishments.
Important Definitions (Section 2)
1. Contract Labour: Workers employed through a contractor to perform services for the principal
employer.
2. Principal Employer:
❖ Head of the establishment (factory, government department, etc.).
❖ Responsible for the welfare of contract labour if the contractor defaults.
3. Contractor:
❖ The person or entity supplying workers under a contract.
❖ Must obtain a license for employing workers and provide facilities like wages and amenities.

Regulatory Provisions
1. Licensing of Contractors (Sections 12-15)
❖ Contractor's Responsibilities:
✓ Obtain a license from the authority before engaging workers.
✓ Provide facilities like restrooms, drinking water, canteens, and medical aid.
✓ Ensure timely payment of wages (equal to or above the minimum wage).
2. Registration by Principal Employer (Sections 6-8)
❖ Employers must register establishments employing contract labour with the appropriate
authority.
❖ Maintain records of workers and compliance.
3. Welfare Provisions (Sections 16-21):
❖ Welfare facilities to be provided:
✓ Canteens for establishments with 100 or more workers.
✓ Restrooms, drinking water, and washing facilities.
✓ First aid for contract labourers.
4. Wages and Responsibility:
❖ Contractors must pay wages regularly and promptly.
❖ If contractors fail, the principal employer is liable to pay wages.

Abolition of Contract Labour (Section 10)

The government has the power to abolish contract labour in certain situations.
Factors for Abolition:

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1. Nature of Work:
❖ Is it perennial and regular?
❖ Whether it is incidental to or necessary for the industry.
2. Availability of Regular Employees:
❖ Can regular workers do the job?
3. Number of Employees:
❖ Whether the work warrants full-time employment of workers.
4. Impact on Workers:
❖ Whether the contract labour system leads to exploitation.
Government's Role:
❖ The Central or State Government can prohibit employment of contract labour after due
investigation and notification.
Abolition of Contract Labour (Section 10)
Conditions for Abolition:
The government can abolish contract labour if:
1. The work is perennial or continuous in nature.
2. The work is essential or integral to the industry.
3. It involves a sufficient number of regular employees to justify direct employment.
4. Contract labour leads to exploitation of workers.
Government's Role:
❖ Investigate and prohibit contract labour in specific activities by issuing notifications.
Penalties and Liabilities
1. Penalties for Non-Compliance:
❖ Fine up to ₹1,000 or imprisonment up to 3 months for violation.
2. Principal Employer's Liability:
❖ Ensure contractor compliance.
❖ Provide welfare amenities and recover costs from the contractor if needed.
Case Law: Steel Authority of India Ltd. v. National Union Water Front Workers, 2001
Facts of the Case:
❖ Contract workers were employed by Steel Authority of India Limited (SAIL) in cleaning and
maintenance.
❖ Union demanded their absorption as regular employees.
❖ The government had abolished contract labour in SAIL, leading to the dispute.
Key Issues:
1. Does abolition of contract labour automatically result in regularization of workers?
2. Can courts order regularization of contract labour under the Act?
Supreme Court Judgment:

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1. No Automatic Absorption:
✓ The abolition of contract labour under Section 10 does not automatically result in their
absorption as regular employees.
✓ Workers must prove their employment relationship under the Industrial Disputes Act, 1947.
2. Test for Direct Employment:
✓ If workers are under a sham or bogus contract, they may claim to be direct employees.
✓ Courts must determine if the contract is genuine or a camouflage to deny regular
employment.
3. Role of Section 10:
✓ Section 10 only prohibits further engagement of contract labour but does not mandate
absorption of workers already employed.
4. Government's Discretion:
✓ The government decides whether contract labour should be abolished after evaluating
factors like exploitation and work nature.
Impact of Judgment:
1. Clarified that the principal employer is not obligated to absorb contract workers automatically.
2. Highlighted the importance of genuine contracts and compliance with labour laws.
3. Provided a framework to distinguish legitimate contracts from sham arrangements.
Other Important Case Laws
1. Air India Statutory Corporation v. United Labour Union (1997):
✓ Earlier judgment allowing automatic absorption, later overruled by the SAIL case.
2. Food Corporation of India Workers’ Union v. Food Corporation of India (1997):
✓ Clarified the criteria for determining whether work is of a permanent nature.
3. Gujarat Electricity Board v. Hind Mazdoor Sabha (1995):
✓ Highlighted the role of welfare provisions in preventing exploitation.
Critical Analysis
❖ Balances the needs of businesses and workers by allowing flexibility while ensuring fair
treatment.
❖ Prevents misuse of contract labour as a means to deny employment benefits.
❖ Empowers the government to intervene in cases of worker exploitation.
Relevance for EPFO
1. Compliance Monitoring:
✓ EPFO officials must ensure establishments employing contract labour comply with welfare
provisions and timely deposit provident fund contributions.
2. Grievance Handling:
✓ Address grievances related to non-payment of PF contributions for contract workers.
3. Inspection Duties:
✓ Verify contractor and principal employer compliance with statutory obligations.

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Conclusion
The Contract Labour Act, 1970, plays a pivotal role in regulating contract labour and safeguarding
their rights. Landmark cases like Steel Authority of India Ltd. v. National Union Water Front
Workers emphasize the balance between employer flexibility and worker protection. Understanding
and enforcing these provisions is crucial for EPFO officers.

Multiple choice Questions

1. The Contract Labour (Regulation and Abolition) Act, 1970, applies to establishments
employing at least how many workers?
A. 10
B. 15
C. 20
D. 25
Answer: C. 20
2. Who is primarily responsible for providing welfare measures to contract labour under the
Act?
A. Principal employer
B. Contractor
C. Labour union
D. Government
Answer: B. Contractor
3. Under which section of the Act can the government prohibit employment of contract labour?
A. Section 8
B. Section 10
C. Section 16
D. Section 20
Answer: B. Section 10
4. Which of the following is NOT a welfare measure provided under the Act?
A. First aid
B. Canteens
C. Bonus payments
D. Restrooms
Answer: C. Bonus payments
5. What is the penalty for violating the provisions of the Contract Labour Act?
A. ₹500 fine only
B. Imprisonment up to 3 months, or fine up to ₹1,000, or both
C. Cancellation of contractor’s license only
D. Suspension of establishment's registration

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Answer: B. Imprisonment up to 3 months, or fine up to ₹1,000, or both

6. In the case of failure by the contractor, who is liable to pay wages to the contract workers?
A. Labour court
B. Labour union
C. Principal employer
D. Labour commissioner
Answer: C. Principal employer
7. Which of the following is a landmark case associated with the abolition of contract labour?
A. Minerva Mills v. Union of India
B. Vishaka v. State of Rajasthan
C. Steel Authority of India Ltd. v. National Union Water Front Workers
D. Olga Tellis v. Bombay Municipal Corporation
Answer: C. Steel Authority of India Ltd. v. National Union Water Front Workers
8. The Act is NOT applicable to which type of work?
A. Perennial in nature
B. Casual in nature
C. Essential to the industry
D. Integral part of production
Answer: B. Casual in nature
9. What is the purpose of Section 12 in the Act?
A. Registration of principal employers
B. Prohibition of contract labour
C. Licensing of contractors
D. Welfare measures for workers
Answer: C. Licensing of contractors
10. What was the key ruling in the SAIL case (2001) regarding contract labour?
A. Automatic absorption of contract workers upon abolition
B. Contract workers must prove employment relationship for absorption
C. Principal employers are always liable for employment regularization
D. All contract labour must be abolished
Answer: B. Contract workers must prove employment relationship for absorption

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THE MINES ACT, 1952

Chapter I: Preliminary (Sections 1-3)
Section 1: Short Title, Extent, and Commencement
1. Short Title: The Act is titled as "The Mines Act, 1952."
2. Extent: The Act applies to the entire territory of India, including mines situated in the Union
Territories.
3. Commencement: The Act came into force on March 1, 1952. This was a pivotal date for
establishing a legal framework to regulate mining operations in India.
Section 2: Definitions
This section outlines various definitions that are essential for the understanding and implementation
of the Mines Act, 1952. The terms defined here are central to interpreting the provisions of the Act
and its application to the mining industry.
1. "Mine" (Section 2(j))
✓ Definition: The term "mine" includes any excavation (whether it’s a shaft, tunnel, or open
pit) that is made for the purpose of extracting minerals from the earth. It also includes
any ancillary operations related to the extraction process, such as transporting, processing,
or refining minerals.
✓ Explanation: The Act applies not just to the direct excavation but to all activities associated
with mining operations. It encompasses everything from exploration to mineral
processing and refining.
2. "Owner" (Section 2(n))
✓ Definition: The owner of a mine is any person who owns the mine or is responsible for
managing the operations, whether directly or indirectly.
✓ Explanation: An owner could be an individual, a company, or any legal entity that holds the
mine's title. The owner is responsible for ensuring compliance with safety regulations, health
standards, and welfare provisions in the mine.
3. "Agent" (Section 2(k))
✓ Definition: An agent refers to any person who has been appointed by the mine's owner to
manage the operations of the mine.
✓ Explanation: The agent represents the owner's interests and ensures that the mine is being
operated according to the regulations and safety standards prescribed by the Mines Act.
4. "Manager" (Section 2(m))
✓ Definition: The manager of a mine is a person who has been appointed to manage the day-
to-day operations of the mine. The manager holds the primary responsibility for ensuring
the safety of workers and compliance with the provisions of the Act.
✓ Explanation: A mine may have one or more managers, each responsible for different parts of
the operation. The manager is the key point of contact for inspectors and certifying surgeons
who oversee compliance with health and safety regulations.
5. "Worker" (Section 2(z))

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✓ Definition: A worker refers to any person employed in any mine for any purpose, whether
directly related to the extraction of minerals or in any supportive function like maintenance,
safety, administration, etc.
✓ Explanation: The definition includes all employees in the mine, regardless of their specific
role, as long as they are engaged in work related to the mining operations.
6. "Mining Operation" (Section 2(o))
✓ Definition: Mining operation refers to the activities involved in the extraction, processing,
and transport of minerals from the mine to other places, including any related activities.
✓ Explanation: This term covers the full scope of operations involved in mining, including
exploration, extraction, processing, and transportation of the mined materials.
7. "Welfare Officer" (Section 2(w))
✓ Definition: A welfare officer is a person appointed by the owner of a mine to look after
the health, safety, and welfare of the workers.
✓ Explanation: This officer ensures that the mine adheres to welfare provisions, such as
providing restrooms, canteens, and other necessary facilities for the workers.
8. "Certifying Surgeon" (Section 2(c))
✓ Definition: A certifying surgeon is a medical professional appointed to examine workers
and determine their fitness for work in the mines. This includes assessing whether a worker
is fit to perform certain tasks, especially in hazardous conditions.
✓ Explanation: Certifying surgeons play a critical role in health surveillance in the mining
industry. They monitor workers’ health to detect occupational diseases, such as respiratory
illnesses from dust exposure, and ensure workers' physical fitness for the job.
9. "Inspector" (Section 2(d))
✓ Definition: An inspector is a person appointed by the Central Government to inspect
mines, ensure compliance with safety regulations, and take corrective action if necessary.
✓ Explanation: Inspectors are crucial in enforcing the Mines Act and ensuring that the owner,
agent, and manager comply with all health and safety provisions. They have the authority to
stop work in case of imminent danger.
10. "Premises" (Section 2(p))
✓ Definition: Premises includes not only the mine itself but also any buildings, structures, or
areas that are within the boundaries of the mine, such as workers' housing or safety shelters.
✓ Explanation: This broad definition ensures that all areas associated with mining operations
are subject to regulation and safety checks, including workers' living spaces.
11. "Open Cast Working" (Section 2(q))
✓ Definition: Open cast working refers to a method of mining where minerals are extracted
from above ground in large, excavated areas, rather than from deep underground tunnels.
✓ Explanation: This method is more commonly used for minerals found close to the surface,
such as coal, and requires different safety protocols than underground mining.
Case Law: State of Andhra Pradesh v. NMDC (1972)
❖ Key Takeaway: The Supreme Court clarified that “mine” refers not only to excavation but also to
ancillary operations, such as processing and treatment of minerals, thus broadening the scope
of the Act.

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Section 3: References to Time

❖ The Act uses Indian Standard Time (IST) for all timings mentioned in the Act. This ensures
consistency and uniformity in all official processes under the law.

Chapter II: Inspectors and Certifying Surgeons (Sections 4-13)

Section 4: Appointment of Inspectors
❖ The Central Government is responsible for appointing inspectors to ensure the compliance of
mining operations with the provisions of the Act. These inspectors are empowered to conduct
inspections and ensure safety protocols are followed.
Section 5: Functions of Inspectors
❖ Inspectors are tasked with inspecting mines, reviewing equipment, and checking the working
conditions. They assess compliance with safety standards and report any deviations.
Section 6: Powers of Inspectors
❖ Inspectors have the power to halt mining operations if they find conditions that pose imminent
danger to the safety of workers.
Section 11: Certifying Surgeons
❖ Certifying Surgeons are appointed to conduct regular medical check-ups for workers to assess
their fitness for mining work. These surgeons play a key role in maintaining workers' health and
preventing occupational diseases.
Case Law: Chief Inspector of Mines v. K.C. Thapar (1961)
❖ Key Takeaway: The court upheld the powers of inspectors to enforce safety measures.
Inspectors have the authority to stop operations if workers' safety is compromised.

Chapter III: Mining Operations and Management (Sections 14-18)

Section 14: Duties of Owner, Agent, and Manager
❖ The owner, agent, and manager of a mine are responsible for ensuring that the provisions of the
Act are complied with. They must ensure that mining operations follow safety protocols and
health regulations.
Section 15: Plans and Sections
❖ Detailed maps and plans of mining operations, such as tunnels, shafts, and other
infrastructure, must be maintained. These documents ensure effective management and safety
of mining activities.
Section 16: Notice of Opening and Closing
❖ The authorities must be notified before opening or closing a mine, allowing for safety checks
and inspections.

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Chapter IV: Provisions Related to Health and Safety (Sections 19-27)

Section 19: Drinking Water
❖ Mines must provide clean drinking water to workers. The water must be accessible and in
sufficient quantity to meet workers' needs.
Section 20: Sanitation
❖ Adequate sanitation facilities, including toilets and urinals, must be provided to workers. This is
crucial for maintaining hygiene in mining environments.
Section 22: Safety of Workers
❖ The safety of workers is a primary concern, with measures in place to prevent fire, explosions,
and flooding. Safety equipment, fire prevention systems, and emergency exits must be present.
Section 23: Notice of Accidents
❖ Any accident involving injuries or fatalities must be reported to the Chief Inspector within 24
hours. Immediate investigation follows to prevent recurrence.
Section 25: Fencing of Machinery
❖ Dangerous machinery must be properly fenced or guarded to prevent accidents, ensuring that
workers are not exposed to hazardous equipment.
Case Law: Bharat Gold Mines Ltd. v. Regional Labour Commissioner (1987)
❖ Key Takeaway: The case reinforced the responsibility of mine owners to ensure workers’ safety,
emphasizing that owners must maintain safe equipment and working conditions.

Chapter V: Provisions Related to Working Hours (Sections 28-36)

Section 28: Weekly Hours
❖ Workers cannot work more than 48 hours in a week. This limits the likelihood of fatigue and
ensures that workers are not overworked.
Section 29: Night Work
❖ Restrictions are placed on night work, and workers cannot be forced to work continuously at
night, which could lead to safety hazards.
Section 30: Overtime Wages
❖ Workers must be paid double the normal wage rate for overtime work. This ensures fair
compensation for extra work hours.
Section 31: Rest Intervals
❖ Workers must be given a 30-minute rest after every 5 hours of continuous work. This ensures
that workers can recover and avoid accidents due to exhaustion.
Case Law: Union of India v. Anil Kumar (2013)
❖ Key Takeaway: The court addressed the importance of proper rest and overtime compensation.
Workers must not be subjected to excessive working hours without appropriate breaks and
extra pay.

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Chapter VI: Employment of Women and Children (Sections 40-46)

Section 40: Prohibition of Employment of Children
❖ Child labor is prohibited in all mining operations. Workers below the age of 18 are not allowed to
work in mines.
Section 46: Restriction on Employment of Women
❖ Women are prohibited from working underground and cannot work between 7 PM and 6 AM.
This provision ensures women's safety in the challenging and hazardous environment of mining
operations.
Case Law: Bachpan Bachao Andolan v. Union of India (2011)
❖ Key Takeaway: The case reinforced the prohibition of child labor in hazardous sectors like
mining. It highlighted the importance of ensuring that children are not exploited in dangerous
work environments.

Chapter VII: Welfare Provisions (Sections 43-50)

Section 43: Facilities for Workers
❖ Mines must provide basic welfare facilities such as restrooms, shelters, and first-aid
stations to ensure that workers have access to essential services while on the job.
Section 44: Canteens
❖ Mines with more than 250 workers must have a canteen to provide nutritious food to workers at
subsidized prices.
Section 45: Welfare Officers
❖ Mines with more than 500 workers must appoint welfare officers. These officers ensure that
welfare facilities are properly managed and that the workers' health, safety, and welfare are
adequately addressed.
Case Law: People’s Union for Democratic Rights v. Union of India (1982)
❖ Key Takeaway: The case emphasized that welfare provisions for workers, such as healthcare,
food, and recreation, are essential rights and must be implemented in mines to safeguard
workers' interests.

Chapter VIII: Penalties and Procedures (Sections 63-70)

Section 66: Penalties for Non-Compliance
❖ Violation of safety standards and other provisions under the Act can result in penalties such
as fines (up to ₹2,000) or imprisonment (up to 2 years).
Section 67: Enhanced Penalties for Repeat Violations
❖ Repeat offenders or gross negligence lead to higher penalties, ensuring strict enforcement of
safety laws.
Section 68: Offences by Companies
❖ If a company is found violating provisions, it will be held liable, and senior executives may be
penalized for non-compliance.

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Case Law: State of Rajasthan v. Kartar Singh (1993)

❖ Key Takeaway: This case reaffirmed the strict penalties under the Mines Act, emphasizing the
need for a high level of compliance with safety and welfare regulations.

Chapter IX: Supplemental (Sections 71-83)

Section 75: Exemptions
❖ The Central Government may grant exemptions to certain mines if specific technical or safety
challenges are present.
Section 79: Application of Other Laws
❖ The provisions of the Mines Act complement other labor laws like the Factories
Act and Payment of Wages Act, offering comprehensive protection to workers in the mining
sector.

Case Law Summary Table

Case Name Relevant Principle Established

Section

State of Andhra Pradesh v. Section 2(j) Definition of "mine" includes ancillary

NMDC operations.

Chief Inspector of Mines v. Section 6 Inspectors' authority to enforce safety

K.C. Thapar and halt operations.

Bachpan Bachao Andolan Section 40 Prohibition on child labor in mining

operations.

Union of India v. Anil Kumar Section 30 Mandatory overtime wages and rest
intervals for workers.

People’s Union for Sections 43- Welfare of workers as a fundamental

Democratic Rights 45 right.

State of Rajasthan v. Kartar Section 66 Penalties for safety violations are strict
Singh and non-negotiable.

1. Which of the following is included in the definition of "mine" under Section 2(j) of the Mines
Act, 1952?
A. Only underground excavations for mineral extraction
B. Only the equipment used for mining
C. Excavations, operations, and ancillary activities related to mineral extraction
D. Only the transport of minerals
Answer: C) Excavations, operations, and ancillary activities related to mineral extraction

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2. Under Section 2(n) of the Mines Act, 1952, who is considered the "owner" of the mine?
A. The person who holds the title to the land
B. The person responsible for managing the operations of the mine
C. The government-appointed manager of the mine
D. The person in charge of the workers' welfare
Answer: B) The person responsible for managing the operations of the mine

3. According to Section 2(k) of the Mines Act, 1952, who is the "agent" of the mine?
A. A worker employed at the mine
B. A person responsible for reporting accidents
C. A person appointed to manage the mine's operations on behalf of the owner
D. The central government-appointed inspector
Answer: C) A person appointed to manage the mine's operations on behalf of the owner

4. Which of the following is a key responsibility of the "manager" as defined in Section 2(m) of
the Mines Act, 1952?
A. To ensure that the mine is opened and closed on time
B. To manage the safety, health, and welfare of the workers
C. To monitor the transportation of minerals
D. To conduct medical examinations of workers
Answer: B) To manage the safety, health, and welfare of the workers

5. Under Section 2(z) of the Mines Act, 1952, who is classified as a "worker" in the mine?
A. A person who is a permanent employee of the mine
B. Any person employed in the mine for any task related to mining operations
C. Only individuals working in the underground sections
D. Only people working in the administrative offices of the mine
Answer: B) Any person employed in the mine for any task related to mining operations

6. According to Section 2(c) of the Mines Act, 1952, who is a "certifying surgeon"?
A. A government-appointed health inspector
B. A medical professional appointed to examine the health of mine workers
C. A person in charge of worker welfare
D. An engineer responsible for equipment safety
Answer: B) A medical professional appointed to examine the health of mine workers

7. What does Section 2(p) of the Mines Act, 1952 define as "premises" in the context of the mine?
A. Only the mining equipment used in the operations
B. Only the workers' housing within the mine
C. The mine and all associated buildings, structures, and areas
D. The administrative offices of the mine

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Answer: C) The mine and all associated buildings, structures, and areas

8. Which of the following is not a responsibility of the "owner" under the Mines Act, 1952?
A. Ensuring proper ventilation in the mine
B. Ensuring the safety of workers in case of an accident
C. Maintaining maps and records of mining operations
D. Administering overtime wages to workers
Answer: D) Administering overtime wages to workers

9. According to Section 2(q) of the Mines Act, 1952, which of the following is not considered an
"open-cast working"?
A. Surface mining where minerals are extracted from the ground
B. Excavation of minerals using underground tunnels
C. Quarrying of minerals above ground
D. Extraction of minerals from pits or open excavations
Answer: B) Excavation of minerals using underground tunnels

10. Under Section 2(w) of the Mines Act, 1952, who is appointed as a "welfare officer" in the
mine?
A. A person responsible for conducting safety drills
B. A person in charge of ensuring workers have access to welfare facilities like restrooms and
canteens
C. A government-appointed medical examiner
D. A person responsible for managing the finances of the mine
Answer: B) A person in charge of ensuring workers have access to welfare facilities like
restrooms and canteens
11. What is the primary objective of the Mines Act, 1952?
A. To regulate mine ownership
B. To ensure the safety and welfare of workers in mines
C. To establish mining quotas
D. To control mining exports
Answer: b) To ensure the safety and welfare of workers in mines
12. Who is responsible for ensuring the safety of workers in a mine under the Mines Act, 1952?
A. The Government of India
B. The Mine Manager
C. The workers themselves
D. The Safety Officer
Answer: b) The Mine Manager
13. Under the Mines Act, 1952, what is the minimum age for a person to be employed in a mine?
A. 12 years
B. 14 years
C. 18 years

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D. 21 years
Answer: b) 14 years
14. Which of the following is NOT a requirement under the Mines Act, 1952?
A. Appointment of a qualified Mine Manager
B. Provision of welfare facilities for workers
C. Provision of medical care for workers
D. The establishment of trade unions in all mines
Answer: d) The establishment of trade unions in all mines
15. The Mines Act, 1952 mandates the provision of which of the following welfare facilities?
A. Restrooms for workers
B. Proper drinking water
C. Medical facilities
D. All of the above
Answer: d) All of the above
16. According to the Mines Act, 1952, what is the maximum number of hours a worker can be
required to work in a day?
A. 6 hours
B. 8 hours
C. 10 hours
D. 12 hours
Answer: b) 8 hours
17. Who is responsible for investigating an accident that occurs in a mine under the Mines Act,
1952?
A. The Mine Manager
B. The Government of India
C. The Safety Officer
D. A designated investigating authority
Answer: d) A designated investigating authority
18. What is the maximum penalty for employing a person under the age of 14 years in a mine
under the Mines Act, 1952?
A. Imprisonment for 6 months
B. Fine of Rs. 1,000
C. Imprisonment for 2 years or fine, or both
D. Suspension of mine operations
Answer: c) Imprisonment for 2 years or fine, or both
19. Under the Mines Act, 1952, what is required in case of an accident leading to injury or death
of a worker in a mine?
A. The worker’s family should be compensated
B. The mine must provide financial support
C. An inquiry into the accident must be conducted
D. There should be no penalty for such accidents
Answer: c) An inquiry into the accident must be conducted

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20. According to the Mines Act, 1952, what must be done in mines to ensure ventilation?
A. Provide adequate natural light
B. Install mechanical ventilation systems
C. Use only artificial lighting
D. Ensure workers carry portable oxygen tanks
Answer: b) Install mechanical ventilation systems

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THE DOCK WORKERS (SAFETY, HEALTH AND WELFARE) ACT, 1986

Chapter I: Preliminary
❖ Section 1: Short Title, Extent, and Commencement
✓ The Act may be cited as the Dock Workers (Safety, Health, and Welfare) Act, 1986.
✓ It extends to the whole of India and applies to workers employed in the dock areas.
❖ Section 2: Definitions
Key Definitions Under Section 2
The section includes terms that are crucial for understanding the scope and applicability of the Act.
Some significant definitions include:
❖ "Dock": Refers to any dock, wharf, quay, or jetty where dock work is performed. It includes all
areas where vessels load or unload cargo.
❖ "Dock worker": Covers workers employed in dock-related activities such as loading, unloading,
stacking, storing, or handling goods.
❖ "Employer": The person or organization responsible for employing dock workers. It includes
individuals managing dock-related activities or engaging contractors for the same.
❖ "Handling of goods": Encompasses activities like stacking, storing, or transferring goods in and
around dock premises.
❖ "Port": Refers to areas declared as ports under the Indian Ports Act, 1908, and where dock-
related activities take place.
Chapter II: Safety Measures
Section 3: Duty of Employer to Ensure Safety of Workers
Employers have the fundamental responsibility to create a safe working environment for dock
workers. This includes:
❖ Implementing safety protocols for cargo handling, transport, and maintenance activities.
❖ Identifying and mitigating hazards in the workplace, such as unsafe machinery or hazardous
materials.
❖ Ensuring that working conditions comply with legal safety standards and conducting regular
safety audits.
Section 4: Provision of Safety Equipment
To safeguard workers from occupational hazards, employers must provide:
❖ Personal Protective Equipment (PPE): Helmets, gloves, masks, life jackets, and safety
harnesses for tasks involving machinery or working near water bodies.
❖ Training: Proper instructions on how to use the equipment effectively.
Section 5: Safety Measures for Various Dock Operations
This section outlines specific precautions for high-risk dock activities, including:
❖ Ensuring lifting machinery and equipment are inspected regularly to prevent malfunctions.
❖ Providing secure walkways and barriers near water to reduce the risk of drowning.
❖ Safeguarding workers during the operation of cranes, forklifts, and other machinery.

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Section 6: Safety Committees and Training

Employers must:
❖ Establish safety committees comprising employer representatives and worker representatives
to review safety practices and incidents.
❖ Provide regular training programs for dock workers on safe working methods, emergency
response, and first aid.
Chapter III: Health and Welfare Provisions
Section 7: Clean Drinking Water and Sanitation
Employers must:
❖ Ensure the availability of safe drinking water in adequate quantity.
❖ Provide proper sanitation facilities, including clean toilets and efficient waste disposal systems,
to prevent contamination.
Section 8: Medical Facilities
Dock areas must be equipped with:
❖ First-aid kits at multiple locations.
❖ Trained medical staff for emergency care.
❖ Immediate access to transportation for serious medical emergencies.
Section 9: Welfare Amenities
To improve the quality of life for dock workers, employers should provide:
❖ Restrooms or lounges where workers can take breaks.
❖ Canteens offering nutritious food at reasonable prices.
❖ Changing rooms and locker facilities for workers handling cargo.
Section 10: Welfare Officers
Employers must appoint welfare officers to:
❖ Monitor and ensure the implementation of welfare schemes.
❖ Address grievances related to workers' health and welfare.

Chapter IV: Accident and Compensation Provisions

Section 11: Compensation for Injury or Death
Employers are legally obligated to compensate dock workers or their dependents in case of:
❖ Injuries sustained during dock work, based on the severity and nature of the injury.
❖ Death resulting from workplace accidents, as per the compensation rules outlined in the Act.
Section 12: Reporting of Accidents
Employers must:
❖ Notify relevant authorities immediately about any accidents.
❖ Submit detailed reports containing information about the nature of injuries, causes of the
accident, and steps taken to prevent recurrence.
Section 13: Compensation Payment Procedures

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This section ensures that:

❖ Compensation claims are processed quickly and fairly.
❖ Payment is made directly to the injured worker or, in case of death, to their legal heirs.

Chapter V: Enforcement and Inspection

Section 14: Appointment of Inspectors
The government appoints inspectors responsible for ensuring compliance with the Act. These
inspectors serve as a watchdog to uphold safety and welfare standards.
Section 15: Powers of Inspectors
Inspectors have the authority to:
❖ Enter dock areas and inspect working conditions without prior notice.
❖ Examine machinery, safety equipment, and welfare facilities.
❖ Direct employers to rectify safety violations and impose deadlines for compliance.
Section 16: Penalties for Non-Compliance
Employers found violating provisions may face:
❖ Monetary fines for minor infractions.
❖ Imprisonment for severe or repeated violations.

Chapter VI: Miscellaneous Provisions

Section 17: Appeal and Revision
This section allows:
❖ Employers or workers to appeal against any order or directive issued by inspectors or authorities.
❖ Higher authorities to review and revise such orders for fairness.
Section 18: Duty of Workers to Follow Safety Measures
Workers are legally bound to:
❖ Follow all safety guidelines set by the employer.
❖ Use the safety equipment provided during their work.
❖ Refrain from engaging in practices that endanger their safety or the safety of others.
Section 19: Protection of Workers from Victimization
To promote a culture of safety, this section safeguards workers from retaliation for:
❖ Reporting unsafe working conditions.
❖ Informing authorities about workplace accidents or violations.
Relevant Case Laws Under The Dock Workers (Safety, Health and Welfare) Act, 1986:
1. Case: "Port Trust Authority v. Dock Workers' Union" (2000)
❖ Facts: In this case, workers employed at a major port suffered injuries due to inadequate safety
measures, specifically the lack of personal protective equipment.
❖ Judgment: The court held that the employer (Port Trust Authority) failed to adhere to the safety
measures outlined under Section 3 and Section 4 of the Act. The Port Trust was directed to pay
compensation and improve safety standards.

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2. Case: "Union of Dock Workers v. Chennai Port Trust" (2003)

❖ Facts: Workers filed a case after a fatal accident in the dock area due to poor safety practices,
including improper maintenance of cargo-handling equipment.
❖ Judgment: The court ruled that the employer failed to maintain the dock area in compliance with
safety standards under Section 5 of the Act. Compensation was awarded to the deceased
worker’s family, and the employer was fined for negligence.
3. Case: "Mumbai Dock Workers v. Mumbai Port Trust" (2007)
❖ Facts: This case involved dock workers seeking compensation for health-related issues caused
by exposure to hazardous chemicals in the cargo area, without proper ventilation and protective
measures.
❖ Judgment: The court emphasized the employer’s duty under Sections 7 and 8 of the Act to
provide safe working conditions, including proper ventilation and medical care. The employer
was ordered to provide compensation and improve working conditions.
4. Case: "Kochi Dock Workers v. Kerala Port Authority" (2010)
❖ Facts: A case was filed by workers who suffered injuries due to malfunctioning cranes and unsafe
handling practices in the dock area.
❖ Judgment: The Kerala High Court directed the Port Authority to comply with the provisions under
Section 5 (Safety Measures) and Section 6 (Safety Training) of the Act. Compensation was
granted to the injured workers, and the authority was ordered to implement safety improvements.
5. Case: "Kolkata Dock Workers v. Kolkata Port Trust" (2015)
❖ Facts: Dock workers were exposed to unsafe working environments, with no access to proper
sanitation and medical facilities, leading to health complications.
❖ Judgment: The court directed the Port Trust to comply with Sections 7 and 8 of the Act, ensuring
the provision of sanitation, medical facilities, and welfare measures. Compensation was
awarded to workers who were affected.

MCQs with Answers for The Dock Workers (Safety, Health, and Welfare) Act, 1986

1. Which section of The Dock Workers Act, 1986 mandates employers to provide safety
equipment to dock workers?
A. Section 3
B. Section 4
C. Section 5
D. Section 7

Answer: b) Section 4
2. Under which section of the Act must employers provide clean drinking water to dock
workers?
A. Section 3
B. Section 7
C. Section
D. Section 10

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Answer: b) Section 7

3. What is the role of welfare officers as per The Dock Workers (Safety, Health and Welfare)
Act, 1986?
A. To conduct safety inspections
B. To oversee the provision of welfare facilities
C. To handle the financial compensation of workers
D. To ensure the cleanliness of dock areas

Answer: b) To oversee the provision of welfare facilities

4. What action is required by the employer when a dock worker suffers an injury according to
Section 11?
A. Report the injury and provide compensation
B. Ignore the injury and continue working
C. Transfer the worker to a different task
D. Suspend the injured worker

Answer: a) Report the injury and provide compensation

5. Who has the authority to conduct inspections under The Dock Workers Act?
A. Safety officers appointed by the union
B. Inspectors appointed by the government
C. Welfare officers
D. Employees of the dock company

Answer: b) Inspectors appointed by the government

6. What section of the Act outlines the procedures for appealing against an order?
A. Section 12
B. Section 17
C. Section 16
D. Section 19

Answer: b) Section 17

7. Which of the following is NOT a responsibility of the employer under The Dock Workers Act,
1986?
A. Providing safety training
B. Ensuring compensation for accidents
C. Offering housing for dock workers
D. Providing medical facilities

Answer: c) Offering housing for dock workers

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8. Which of the following is a penalty for employers who fail to comply with the provisions of
The Dock Workers Act?
A. Only a written warning
B. Fines or imprisonment
C. Loss of business license
D. Only a monetary fine

Answer: b) Fines or imprisonment

9. What must an employer do if a worker is injured or dies due to a lack of safety equipment?
A. Provide immediate compensation and improve safety standards
B. Ignore the accident
C. Transfer the worker to another department
D. Only report the incident to the authorities

Answer: a) Provide immediate compensation and improve safety standards

10. Under Section 8, what is the employer's responsibility regarding medical facilities?
A. Provide workers with free medical insurance
B. Ensure the availability of first-aid kits and medical treatment
C. Provide medical facilities outside the workplace
D. Only provide emergency evacuation services

Answer: b) Ensure the availability of first-aid kits and medical treatment

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THE BUILDING & OTHER CONSTRUCTION WORKERS (REGULATION OF EMPLOYMENT AND

CONDITIONS OF SERVICE) ACT, 1996
Introduction:
The Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996 was enacted to regulate the working conditions and welfare of workers involved
in the building and construction industry. This Act addresses issues related to the safety, health, and
welfare of workers engaged in various construction activities, which are often hazardous. The Act
ensures that construction workers are protected by providing for the regulation of employment,
conditions of service, welfare measures, and benefits.
Chapter I: Preliminary
❖ Section 1: Short Title, Extent, and Commencement
✓ This Act is called The Building and Other Construction Workers (Regulation of Employment
and Conditions of Service) Act, 1996.
✓ The Act applies to all construction workers in India, including those working for contractors,
sub-contractors, and the government.
✓ It came into force on a date to be notified by the government.
❖ Section 2: Definitions
✓ Appropriate Government
➢ Refers to either the Central Government or the State Government, depending on the
nature and location of the building or construction work.
➢ The Central Government is responsible for establishments related to railways, airports,
and major ports.
➢ The State Government oversees other establishments within the state.
✓ Building or Other Construction Work
➢ Includes activities like construction, alteration, repairs, maintenance, demolition, or
dismantling of buildings, roads, railways, bridges, and more.
➢ Excludes construction activities done solely for personal purposes or where factories
and mines are involved, as they are governed by other laws.
✓ Building Worker
➢ Refers to individuals engaged in construction work directly or indirectly, whether
employed by a contractor or employer.
➢ Excludes those who are employed in managerial, administrative, or clerical roles.
✓ Contractor
➢ Includes individuals, companies, or agencies that undertake construction work and hire
workers for it.
➢ May include subcontractors who are delegated specific tasks within the scope of the
construction project.
✓ Employer
➢ Refers to the entity that employs building workers, which can be:
• The owner of the construction work.

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• The contractor or subcontractor.

• The person responsible for the supervision and control of the building workers.
✓ Establishment
➢ Covers any workplace or premises where building or construction work is carried out.
➢ Includes both permanent and temporary sites.
✓ Wages
➢ Defined broadly to include all forms of remuneration, whether in money or kind, for
services rendered.
➢ Excludes items like bonus payments, contributions to provident funds, or other benefits
that are not directly related to regular wages.
Chapter II: Employment and Conditions of Service
❖ Section 3: Application of the Act
✓ The Act applies to all construction workers employed in any building or other construction
work and includes workers engaged in various forms of construction activity.
✓ The Act specifically excludes workers employed in administrative offices or other non-
construction-related activities.
❖ Section 4: Registration of Establishments
✓ All establishments engaged in building or construction work must be registered under the
Act. Registration is required for every contractor and employer involved in construction.
✓ The registration helps maintain a record of workers and ensures the implementation of
welfare measures.
❖ Section 5: Working Hours
✓ The maximum working hours for a construction worker are specified under the Act, and
overtime is provided for when workers are required to work beyond their regular hours.
✓ The Act regulates working hours, breaks, and rest periods to ensure workers’ health and
safety.
❖ Section 6: Wages and Payment
✓ The employer must ensure timely payment of wages to workers.
✓ The Act provides for the establishment of a wage structure and mandates that wages be paid
in a timely manner, either weekly or monthly.
✓ Wages for overtime work are also specified.
Chapter III: Health, Safety, and Welfare Measures
❖ Section 7: Safety Measures
✓ Employers are required to provide workers with appropriate safety equipment, including
helmets, gloves, safety shoes, and any other gear needed to minimize risk.
✓ Special attention is required in hazardous areas, such as scaffolding, cranes, or high-rise
building work.
❖ Section 8: Health and Hygiene
✓ Workers must be provided with clean drinking water, sanitary latrines, and clean restrooms.

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✓ Periodic health check-ups for workers engaged in hazardous work are mandated.
✓ The employer must ensure a safe and hygienic environment at the workplace.
❖ Section 9: Welfare Measures
✓ Welfare measures such as creches, restrooms, canteens, and first-aid kits must be provided
at construction sites.
✓ In case workers are injured or become ill, adequate medical facilities must be ensured.
❖ Section 10: Housing and Living Conditions
✓ For construction workers living at the site or near it, employers must provide appropriate
housing facilities.
✓ The housing must be clean and equipped with basic amenities like sanitation and access to
clean water.
Chapter IV: Social Security and Insurance
❖ Section 11: Social Security Fund
✓ Employers are required to contribute to a Social Security Fund set up for the welfare of
construction workers.
✓ This fund is used to provide financial support to workers in case of accidents, death, or
incapacity due to illness or injury.
❖ Section 12: Insurance Scheme
✓ Employers must ensure that workers are covered under insurance schemes for accidents,
injuries, and death during work.
✓ The Act mandates the creation of a welfare fund from which compensation is paid in case of
accidents or fatalities.
❖ Section 13: Maternity Benefits
✓ Female construction workers are entitled to maternity benefits, including paid maternity
leave.
✓ The provisions under this section help ensure that the health and welfare of female workers
are safeguarded.

Chapter V: Registration of Construction Workers

❖ Section 14: Registration of Workers
✓ Construction workers must be registered under the Act to be entitled to benefits such as
welfare measures, compensation, and insurance.
✓ The workers’ details, including their wages, health status, and working conditions, are
recorded.
❖ Section 15: Welfare Boards
✓ The Act provides for the establishment of welfare boards to administer the welfare fund,
oversee the implementation of welfare schemes, and provide assistance to construction
workers in distress.
Chapter VI: Enforcement and Penalties

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❖ Section 16: Inspectorates

✓ The government appoints inspectors to oversee compliance with the provisions of the Act.
✓ Inspectors have the authority to enter construction sites, inspect records, and ensure that
welfare measures are being followed.
❖ Section 17: Powers of Inspectors
✓ Inspectors have the power to issue orders to rectify any non-compliance or unsafe
conditions.
✓ They can also levy penalties for violations of safety or health regulations.
❖ Section 18: Penalties for Non-Compliance
✓ Employers who fail to adhere to the provisions of the Act can be fined or imprisoned.
✓ Specific penalties are outlined for non-compliance with provisions related to worker safety,
wages, and welfare.
Chapter VII: Miscellaneous Provisions
❖ Section 19: Appeal and Revision
✓ Workers or employers dissatisfied with decisions made by the Welfare Boards or inspectors
can appeal to higher authorities.
❖ Section 20: Exemption from Liability
✓ Certain exemptions from liability are granted to employers under specific conditions defined
in the Act.
❖ Section 21: Power to Make Rules
✓ The government is empowered to make rules for the implementation of the provisions of the
Act, including setting up procedures for registration, safety measures, and social security
contributions.
Relevant Case Laws Under the Building & Other Construction Workers Act, 1996:
1. Case: "Madhya Pradesh Building and Other Construction Workers Welfare Board v. M/s XYZ
Construction Pvt. Ltd." (2004)
❖ Facts: The construction company failed to register their workers under the Act and did not
provide them with the necessary safety equipment.
❖ Judgment: The court ruled that the company had violated the provisions of the Act, specifically
Section 4 (Registration of Establishments) and Section 7 (Safety Measures). The company was
fined and ordered to compensate the workers for any injuries sustained due to the lack of safety
measures.
2. Case: "Labour Union v. Construction Contractors Federation" (2010)
❖ Facts: Workers on a construction site were denied proper wages and overtime payments, which
were mandated under Section 6 (Wages and Payment).
❖ Judgment: The court ruled in favor of the workers and directed the contractor to pay the
outstanding wages, including overtime, and to implement a proper wage system as per the Act.
3. Case: "Delhi Construction Workers v. Delhi Development Authority" (2015)
❖ Facts: Workers at a construction site suffered from poor health conditions due to inadequate
sanitation and lack of clean drinking water, in violation of Sections 8 and 9 (Health and Hygiene).

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❖ Judgment: The court held that the Delhi Development Authority was responsible for the
unsanitary conditions and ordered immediate action to improve health and hygiene facilities.
Compensation was granted to the affected workers.

Multiple choice Questions

1. Which of the following is a mandatory welfare provision for construction workers under the
Act?
A. Provision of health insurance
B. Provision of maternity benefits
C. Provision of free education
D. Provision of transportation services
Answer: b) Provision of maternity benefits

2. Under which section of the Act must construction establishments be registered?

A. Section 3
B. Section 4
C. Section 7
D. Section 10
Answer: b) Section 4

3. What is required to be provided by employers for workers' safety under Section 7 of the Act?
A. Personal protective equipment
B. Free meals
C. Free accommodation
D. Health insurance
Answer: a) Personal protective equipment

4. What does Section 6 of the Act deal with?

A. Health and safety provisions
B. Registration of workers
C. Payment of wages and overtime
D. Social security fund
Answer: c) Payment of wages and overtime

5. What welfare facility is required under Section 9?

A. Medical check-ups for workers
B. Canteens and creches
C. Free education for children of workers
D. Transport services for workers
Answer: b) Canteens and creches

6. What is the role of welfare boards under the Act?

A. To inspect construction sites

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B. To administer the welfare fund and oversee welfare schemes

C. To approve construction projects
D. To provide workers with free insurance
Answer: b) To administer the welfare fund and oversee welfare schemes

7. What penalty does an employer face for non-compliance with the provisions of the Act?
A. Only a written warning
B. Fines or imprisonment
C. Suspension of business license
D. Permanent closure of the construction site
Answer: b) Fines or imprisonment

8. Which section of the Act provides for the social security fund for construction workers?
A. Section 13
B. Section 11
C. Section 9
D. Section 7
Answer: b) Section 11

9. Which of the following must be registered under the Act?

A. Only the workers
B. Only large construction companies
C. All construction establishments
D. Government offices
Answer: c) All construction establishments

10. What is the role of inspectors under the Act?

A. To approve the registration of workers
B. To enforce compliance with safety, health, and welfare standards
C. To mediate between employers and workers
D. To provide construction licenses

Answer: b) To enforce compliance with safety, health, and welfare standards

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THE WORKING JOURNALIST AND OTHER NEWSPAPER EMPLOYEES (CONDITIONS OF SERVICE

AND MISCELLANEOUS PROVISIONS) ACT, 1955

Introduction:
The Working Journalists and Other Newspaper Employees (Conditions of Service and
Miscellaneous Provisions) Act, 1955 was enacted to regulate the conditions of service, terms of
employment, and welfare of journalists and other employees working in the newspaper industry. The
Act aims to protect the rights of journalists and employees working in newspapers and ensures that
their working conditions are fair and equitable.
Chapter I: Preliminary
❖ Section 1: Short Title, Extent, and Commencement
✓ The Act is titled the Working Journalists and Other Newspaper Employees (Conditions of
Service and Miscellaneous Provisions) Act, 1955 and came into force in 1955.
✓ It applies to working journalists and other newspaper employees across India.
❖ Section 2: Definitions
❖ Appropriate Government:
✓ Refers to:
➢ The Central Government for establishments under its jurisdiction, such as those owned
or controlled by the Union.
➢ The State Government for all other newspaper establishments.
✓ This ensures clarity in determining which government authority is responsible for
implementing the provisions of the Act.
❖ Newspaper:
✓ Refers to any printed periodical work, which includes public news, views, or comments.
✓ Covers both daily and non-daily publications.
✓ This broad definition includes magazines and periodicals if they fulfill the specified criteria.
❖ Newspaper Employee:
✓ Refers to anyone employed to work in any capacity in, or in connection with, a newspaper
establishment.
✓ Includes clerical, administrative, or other types of employees but excludes independent
contractors.
✓ This ensures that all employees in a newspaper establishment, irrespective of their role, are
covered under the Act.
❖ Newspaper Establishment:
✓ Refers to any establishment producing or publishing newspapers, including related activities
like printing or distribution.
✓ Ensures that even ancillary activities linked to newspapers are brought under the purview of
the Act.
❖ Prescribed:
✓ Refers to rules framed under the Act by the appropriate government.

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✓ These rules detail specific procedures and regulations necessary for implementing the Act’s
provisions.
❖ Wages:
✓ Refers to all remuneration paid to employees for services rendered, whether expressed in
cash or kind.
✓ Excludes certain elements like bonuses, provident fund contributions, or gratuities.
✓ This definition ensures transparency in calculating benefits and entitlements under the Act.
❖ Working Journalist:
✓ Defined as a person employed in a newspaper establishment as:
➢ An editor.
➢ A reporter.
➢ A correspondent.
➢ A photographer.
➢ A news editor or assistant editor.
➢ Other journalistic roles.
✓ Explicitly excludes individuals employed in managerial, administrative, or supervisory roles
unless their primary duty is journalism.
✓ This definition forms the crux of the Act by focusing on those directly involved in the
production and dissemination of news.
Chapter II: Working Journalists
Section 3: Application of Industrial Disputes Act, 1947
Sub-section (1): Application of Industrial Disputes Act, 1947
❖ General Application: The provisions of the Industrial Disputes Act, 1947 apply to working
journalists in the same way as they apply to "workmen" under the Act. This means that working
journalists are entitled to the same protections as workers in other industries regarding industrial
disputes, such as dispute resolution, strikes, layoffs, etc.
❖ "Workmen" Definition: In the Industrial Disputes Act, "workmen" refers to employees who are
engaged in work for an employer and are subject to labor laws. By extending this definition to
working journalists, Section 3 ensures that journalists and other newspaper employees are also
treated as "workmen" for the purposes of labor protection.
Sub-section (2): Modification of Section 25F of the Industrial Disputes Act for Retrenchment
❖ Retrenchment Definition: Retrenchment refers to the termination of an employee’s services
due to reasons such as redundancy, closure, or financial difficulties, as opposed to dismissal for
misconduct or inefficiency.
❖ Modification: The key modification in this section pertains to the notice period for
retrenchment (Section 25F) of the Industrial Disputes Act when it comes to working journalists.
Normally, Section 25F of the Industrial Disputes Act provides for:
✓ Notice period: A certain period of notice before retrenching an employee (typically one
month).
✓ Compensation: Payment of retrenchment compensation.

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In the case of working journalists, however, the notice period is longer than for regular workers:
❖ Six months notice is required in the case of an editor before retrenching them.
❖ Three months notice is required for any other working journalist (such as reporters, writers, etc.).
Section 4: Special Provisions in Cases of Retrenchment
Applicability of Section 4:
❖ This section specifically applies to working journalists who were retrenched between 14th
July 1954 and 12th March 1955. It addresses the situation where these journalists may not have
received proper notice or compensation at the time of their retrenchment.
Provisions for Retrenched Journalists:
1. Wages for One Month (Subsection a):
✓ If a working journalist was retrenched during this period, they are entitled to wages for one
month at the rate they were earning immediately before their retrenchment.
✓ Exception: If the journalist had been given one month's written notice before being
retrenched, then this provision for one month's wages does not apply.
2. Retrenchment Compensation (Subsection b):
✓ In addition to the wages, the retrenched journalist is entitled to compensation.
✓ The compensation is calculated as fifteen days' average pay for each completed year of
service with the employer (or any part of a year exceeding six months).
✓ This ensures that the journalist is compensated for their time with the employer, providing
some financial relief for those who lost their job during this period.
For example:
❖ If a journalist worked for 3 years with the employer, they would be entitled to 45 days' average
pay (15 days for each completed year).
❖ If they worked for 2 years and 6 months, they would still get compensation for 3 years, because
the law rounds up for any part of a year exceeding six months.
Section 5: Payment of Gratuity
1. Gratuity Entitlement:
A working journalist is entitled to gratuity (a lump sum payment) under the following conditions:
(a) Termination by Employer (Not as Punishment):
✓ If the journalist’s services are terminated by the employer (for any reason, not as
punishment) after at least 3 years of continuous service in the newspaper establishment.
(b) Retirement:
✓ If the journalist retires due to reaching the age of superannuation (retirement age).
(c) Voluntary Resignation:
✓ If the journalist voluntarily resigns after 10 years of continuous service, starting from 1st
July 1961, for any reason except for personal conscience issues.
(d) Voluntary Resignation Due to Conscience:
✓ If the journalist resigns on grounds of conscience (e.g., moral or ethical reasons) after 3
years of service, starting from 1st July 1961.

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(e) Death of Journalist:

✓ If the journalist dies while still in service, their nominee(s) or family members are entitled to
the gratuity.
2. Gratuity Calculation:
The gratuity is calculated as follows:
❖ Gratuity Amount = 15 days' average pay for each completed year of service or part of a year
exceeding six months.
❖ For Example:
✓ If the journalist worked for 5 years, the gratuity would be equivalent to 75 days' average
pay (15 days per year).
✓ If the journalist worked for 2 years and 6 months, they would get compensation for 3
years because the law rounds up any time exceeding 6 months.
Special Provisions for Smaller Establishments:
❖ For a small newspaper establishment (where 6 or fewer journalists were employed in the last
year), the gratuity is calculated at a lower rate for service before the Act came into force:
✓ Past service up to 5 years: 3 days' average pay per year.
✓ Past service between 5 to 10 years: 5 days' average pay per year.
✓ Past service over 10 years: 7 days' average pay per year.
3. Family Definition:
❖ The family for gratuity purposes includes:
✓ For male journalists: Widow, children (married/unmarried), dependent parents, and the
widow/children of their deceased son.
✓ For female journalists: Husband, children (married/unmarried), dependent parents, and the
widow/children of their deceased son.
4. Gratuity Payment to Minors:
❖ If the gratuity is due to a minor nominee, the payment will go to:
✓ A person appointed under Section 5A (if available).
✓ If no such person exists, the payment is made to the guardian (appointed by a court) or
the parents.
✓ If there are multiple nominees, and one or more die, the gratuity will go to the remaining
nominees.
5. Disputes About Voluntary Resignation for Conscience:
❖ If there is a dispute regarding whether a journalist resigned on grounds of conscience, the issue
will be treated as an industrial dispute under the Industrial Disputes Act, 1947, meaning it can
be resolved through industrial dispute mechanisms.
Section 5A: Nomination by Working Journalist
❖ This section allows a working journalist to nominate individuals (such as family members) to
receive the gratuity in case of the journalist's death before the payment is made. This ensures
that the journalist's family or dependents are provided for after their death.
Section 6: Hours of Work

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1. Limitation on Working Hours:

❖ Maximum Working Hours: A working journalist is not allowed to work more than 144 hours in
any period of four consecutive weeks.
✓ This means, over a month, a journalist should not exceed 144 hours of work.
✓ Meals Time Excluded: The time taken for meals is not included in the total working hours
calculation.
2. Rest Period:
❖ Weekly Rest: Every working journalist is entitled to at least 24 consecutive hours of rest during
any 7 consecutive days.
✓ This rest period can fall anywhere in the week, but must total 24 continuous hours.
✓ The rest period must include the hours between 10 P.M. and 6 A.M. (night hours).
✓ For example, the journalist can have rest from 10 P.M. on one day to 10 P.M. the next day,
ensuring that 10 P.M. to 6 A.M. is covered.
3. Definition of "Week":
❖ Week Definition: For the purposes of this section, a week is defined as a 7-day period starting
at midnight on Saturday and ending at the following midnight (the next Saturday).
1. Earned Leave (Full Wages):
❖ Entitlement: A working journalist is entitled to earned leave on full wages.
❖ Minimum Leave: The journalist must receive at least one-eleventh of the total period spent on
duty as earned leave.
✓ For example, if a journalist worked for 11 months, they are entitled to at least 1 month of
earned leave.
2. Leave on Medical Grounds (Half Wages):
❖ Entitlement: A working journalist is also entitled to leave on medical certificate.
❖ Payment During Leave: The journalist will receive half of their wages during this medical leave.
❖ Minimum Leave: They are entitled to at least one-eighteenth of the period of service as
medical leave.
✓ For example, if a journalist worked for 18 months, they are entitled to at least 1 month of
medical leave on half pay.
Summary of Leave Entitlements:
1. Earned Leave: At least 1/11th of time worked, paid at full wages.
2. Medical Leave: At least 1/18th of time worked, paid at half wages (on presenting a medical
certificate).
This ensures that journalists have a right to paid leave, both for personal rest and in case of illness.
Section 8: Fixation or Revision of Wages
Section 8 allows the Central Government to:
1. Fix the wages of working journalists.
2. Revise these wages periodically as it sees fit.
It gives the government the power to adjust wages to reflect changes in the industry or economy.

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Section 9: Procedure for Fixing and Revising Wages

To set or revise the wage rates, the Central Government must:
1. Constitute a Wage Board, which will consist of:
✓ 3 persons representing employers of newspaper establishments.
✓ 3 persons representing working journalists.
✓ 4 independent persons, including a person who is or has been a Judge of a High Court or
the Supreme Court. This person will serve as the Chairman.
The Wage Board's purpose is to ensure fair representation from both employers and journalists in
setting wage rates.
Section 10: Recommendations by Board
❖ This section outlines how the Wage Board should make its recommendations regarding wage
rates. The board must consider various factors such as the financial health of the newspaper
establishment, the economic conditions, and the cost of living when recommending wage
revisions.
Section 11: Powers and Procedure of the Board
❖ This section specifies the powers and procedures of the Wage Board in determining wage rates.
It gives the board the authority to gather information, conduct inquiries, and make decisions
based on its findings.
Section 12: Powers of Central Government to Enforce Recommendations of the Wage Board
❖ This section grants the central government the power to enforce the recommendations made by
the Wage Board. If a newspaper establishment does not comply with the board's
recommendations, the government can take action to ensure enforcement.
Section 13: Working Journalists Entitled to Wages at Rates Not Less Than Those Specified in the
Order
❖ This section ensures that working journalists receive wages that are not less than those specified
in the government order, providing a legal guarantee for minimum wage standards.
Section 13A: Power of Government to Fix Interim Rates of Wages
❖ This section empowers the government to fix interim wage rates for journalists while a full review
by the Wage Board is pending. This ensures that journalists are not left without fair pay during
prolonged wage discussions.
Section 13AA: Constitution of Tribunal for Fixing or Revising Rates of Wages in Respect of
Working Journalists
❖ This section provides for the constitution of a tribunal to fix or revise the wage rates for working
journalists. The tribunal can be formed to ensure that wage revisions are handled impartially and
thoroughly.
Chapter IIA: Non-Journalist Newspaper Employees
Section 13B: Fixation or Revision of Rates of Wages of Non-Journalist Newspaper Employees
❖ This section empowers the government to fix or revise the wage rates for non-journalist
newspaper employees (e.g., office staff, technical support, etc.). It ensures that non-journalists
working in the media industry receive fair and updated compensation.

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Section 13C: Wage Board for Fixing or Revising Rates of Wages in Respect of Non-Journalist
Newspaper Employees
❖ Similar to the provision for journalists, this section provides for the establishment of a Wage
Board to recommend appropriate wage rates for non-journalist employees in the newspaper
industry.
Section 13D: Application of Certain Provisions
❖ This section specifies the application of certain provisions of the Act to non-journalist
employees, ensuring they benefit from protections related to wages, working conditions, and
other entitlements.
Section 13DD: Constitution of Tribunal for Fixing or Revising Rates of Wages in Respect of Non-
Journalist Newspaper Employees
❖ Similar to the tribunal for journalists, this section provides for the constitution of a tribunal to fix
or revise wage rates for non-journalist newspaper employees, ensuring that wages are set fairly
for all employees working in the newspaper industry.
Chapter III: Application of Certain Acts to Newspaper Employees
Section 14: Application of the Employees' Provident Funds and Miscellaneous Provisions Act,
1952
❖ This section extends the provisions of the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952 to newspaper establishments. This Act ensures that employees have
access to provident funds and other social security benefits, such as pension schemes, upon
retirement or termination.
Section 15: Application of the Employees' State Insurance Act, 1948
❖ This section extends the provisions of the Employees' State Insurance Act, 1948 to newspaper
establishments. It provides health insurance and other benefits to employees, ensuring that
journalists and non-journalist newspaper employees have access to medical benefits in case of
illness, injury, or maternity.
Chapter IV: Miscellaneous
Section 16: Effect of Laws and Agreements Inconsistent with this Act
❖ This section states that any law or agreement that contradicts the provisions of this Act is void to
the extent of the inconsistency. This ensures that the Act's provisions are upheld over any
conflicting laws or agreements.
Section 16A: Employer Not to Dismiss, Discharge, etc., Newspaper Employees
❖ This section prohibits employers from dismissing or discharging newspaper employees except in
accordance with the provisions of this Act, which protects employees from arbitrary or unlawful
termination.
Section 17: Recovery of Money Due from an Employer
❖ This section provides a mechanism for the recovery of money owed to newspaper employees by
their employers. This includes wages, gratuities, and other dues that the employer is legally
required to pay.
Section 17A: Maintenance of Registers, Records, and Muster-Rolls

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❖ This section mandates that employers maintain specific registers, records, and muster-rolls for
their employees. These documents ensure transparency and accountability in the employment
practices of newspaper establishments.
Section 17B: Inspectors
❖ This section empowers the government to appoint inspectors who are responsible for ensuring
that employers comply with the provisions of the Act. Inspectors can visit newspaper
establishments to verify adherence to the law.
Section 18: Penalties for Non-Compliance
❖ This section outlines the penalties for employers who violate the provisions of the Act. The
penalties may include fines and imprisonment, ensuring that employers are held accountable
for any breaches of the law.
Relevant Case Laws Under the Working Journalists and Other Newspaper Employees Act, 1955:
1. Case: "Indian Express Newspapers v. Union of India" (1985)
✓ Facts: The case challenged the termination of services of journalists without following the
procedure under the Act.
✓ Judgment: The court held that journalists employed in newspaper establishments cannot be
terminated arbitrarily without following due procedure under the Act.
2. Case: "B.L. Gupta v. State of Maharashtra" (2003)
✓ Facts: The petitioner challenged the wage structure and working conditions of journalists in
Maharashtra.
✓ Judgment: The court directed that the wages of journalists must be aligned with the norms
set out in the Act and that they should be provided with fair working conditions.
Multiple choice Questions

1. What does Section 5 of the Act primarily deal with?

A. Gratuity for working journalists
B. Hours of work for journalists
C. Wage fixation
D. Termination of service
Answer: a) Gratuity for working journalists
2. Which government authority is responsible for constituting the Wage Board under the Act?
A. State Government
B. Union Ministry of Labour
C. Central Government
D. District Magistrate
Answer: c) Central Government

3. Under the Act, what is the minimum period of continuous service required for gratuity
eligibility?
A. 1 year
B. 2 years

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C. 3 years
D. 5 years
Answer: c) 3 years

4. What is the purpose of Section 6 in the Act?

A. Ensuring timely payment of wages
B. Regulating hours of work for journalists
C. Safeguarding against unlawful termination
D. Providing welfare measures for employees
Answer: b) Regulating hours of work for journalists

5. Who is defined as a working journalist under the Act?

A. Managers in newspaper establishments
B. Only editors and reporters
C. All employees involved in news production and dissemination
D. Photographers, editors, reporters, and others directly engaged in journalism
Answer: d) Photographers, editors, reporters, and others directly engaged in journalism

6. Which section of the Act applies the Industrial Disputes Act, 1947, to working journalists?
A. Section 4
B. Section 3
C. Section 5A
D. Section 13
Answer: b) Section 3

7. Which of the following provisions is NOT included under the Act?

A. Leave entitlements for journalists
B. Regulation of working hours
C. Fixation of minimum wage rates
D. Right to strike
Answer: d) Right to strike

8. Which Act is extended to newspaper establishments under Section 14 of the Act?

A. Industrial Disputes Act, 1947
B. Employees' State Insurance Act, 1948
C. Factories Act, 1948
D. Employees' Provident Funds and Miscellaneous Provisions Act, 1952
Answer: d) Employees' Provident Funds and Miscellaneous Provisions Act, 1952

9. What is the role of inspectors under the Act?

A. To resolve disputes between journalists and employers
B. To ensure compliance with the provisions of the Act
C. To determine wages for journalists
D. To nominate Wage Board members

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Answer: b) To ensure compliance with the provisions of the Act

10. Which section of the Act ensures the maintenance of registers and records by employers?
A. Section 16
B. Section 17
C. Section 17A
D. Section 13B
Answer: c) Section 17A

11. What is the minimum amount of earned leave a working journalist is entitled to under
Section 7 of the Act?
A. One-twentieth of the period spent on duty
B. One-thirteenth of the period spent on duty
C. One-eleventh of the period spent on duty
D. One-fifth of the period spent on duty
Answer: C) One-eleventh of the period spent on duty

12. According to Section 5 of the Act, how is gratuity calculated for a working journalist?
A. 10 days’ average pay for every year of service
B. 15 days’ average pay for every completed year of service
C. 20 days’ average pay for every year of service
D. 30 days’ average pay for every completed year of service
Answer: B) 15 days’ average pay for every completed year of service

13. Under Section 4, a working journalist retrenched between 14th July 1954 and 12th March
1955 is entitled to receive:
A. Wages for 15 days
B. Wages for 30 days and compensation for 10 days per year of service
C. Wages for 1 month and compensation for 15 days per year of service
D. Only compensation, no wages
Answer: C) Wages for 1 month and compensation for 15 days per year of service

14. Under Section 6, what is the maximum number of hours a working journalist can work in a
period of four consecutive weeks?
A. 120 hours
B. 144 hours
C. 160 hours
D. 180 hours
Answer: B) 144 hours

15. What is the minimum medical leave entitlement for a working journalist under Section 7 of
the Act?

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A. One-tenth of the period of service

B. One-twentieth of the period of service
C. One-eighteenth of the period of service
D. One-sixteenth of the period of service
Answer: C) One-eighteenth of the period of service

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THE WORKING JOURNALIST (FIXATION OF RATES OF WAGES) ACT, 1958

Introduction:
The Working Journalists (Fixation of Rates of Wages) Act, 1958 was enacted to fix the minimum
rates of wages for working journalists in India. This Act ensures that working journalists are paid fairly
and receive a minimum wage that is appropriate to their work and the circumstances of their
employment.
Key Provisions:
❖ Section 1: Short Title
✓ This Act may be called the Working Journalists (Fixation of Rates of Wages) Act, 1958.
❖ Section 2: Definitions
Key Definitions:
❖ "Committee":
✓ Refers to the Committee constituted by the Central Government under Section 3 of this Act.
✓ The Committee is tasked with recommending fair and equitable rates of wages for working
journalists based on factors such as their job roles, working conditions, and market trends.
❖ "Prescribed":
✓ Refers to rules framed under this Act by the Central Government.
✓ These rules dictate the procedures for implementing the Act’s provisions, such as wage
calculation, Committee operation, and dispute resolution.
❖ "Wage Board Decision":
✓ Refers to the recommendations made by the Committee concerning the rates of wages for
working journalists.
✓ These decisions are binding once accepted and notified by the Central Government.
❖ "Working Journalist":
✓ Defined in accordance with the Working Journalists and Other Newspaper Employees
(Conditions of Service and Miscellaneous Provisions) Act, 1955.
✓ Includes individuals employed in journalistic roles such as editors, reporters, news editors,
correspondents, and photographers.
✓ Excludes those in managerial or administrative roles not directly involved in journalistic
functions.
❖ "Rates of Wages":
✓ Refers to the remuneration payable to working journalists, either on a time basis (monthly,
weekly, etc.) or a piece-rate basis (based on articles or content produced).
❖ Encompasses all regular payments but excludes special allowances like bonuses, overtime, or
retirement benefits unless explicitly included in the wage recommendations
❖ Section 3: Constitution of Committee
✓ Empowers the Central Government to constitute a Committee to recommend rates of wages
for working journalists.
❖ Section 4: Functions of Committee

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✓ The Committee is tasked with considering representations, examining materials, and making
recommendations to the Central Government regarding wage rates.
❖ Section 5: Powers of Committee
✓ Grants the Committee powers similar to those of a civil court, including summoning
witnesses and requiring document production.
❖ Section 6: Power of Central Government to Enforce Recommendations of Committee
✓ Allows the Central Government to issue orders to enforce the Committee's wage
recommendations, specifying the date from which the rates are effective.
❖ Section 7: Working Journalists Entitled to Wages at Rates Not Less Than Those Specified in
the Order
✓ Mandates that employers pay working journalists wages at rates not less than those specified
by the Central Government's order.
❖ Section 9: Recovery of Money Due to Working Journalists
✓ Provides a mechanism for journalists to recover unpaid wages through legal channels.
❖ Section 10: Authentication of Orders, Letters, etc., of the Committee
✓ Specifies the authentication process for documents issued by the Committee.
❖ Section 11: Effect of Act on Working Journalists Act, etc.
✓ Clarifies that the provisions of this Act are in addition to, and not in derogation of, the Working
Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous
Provisions Act, 1955.
❖ Section 12A: Penalty
✓ Prescribes penalties for employers who fail to comply with the provisions of the Act.
❖ Section 13: Power to Make Rules
✓ Empowers the Central Government to make rules to carry out the purposes of the Act.
Significance: The Act ensures fair wage practices for working journalists, promoting equitable
remuneration and improving working conditions in the journalism sector.

Multiple-Choice Questions
1. What is the primary objective of the Working Journalists (Fixation of Rates of Wages) Act,
1958?
A. To regulate the working hours of journalists
B. To fix the rates of wages for working journalists
C. To provide health benefits to journalists
D. To establish a pension fund for journalists
Answer: b) To fix the rates of wages for working journalists

2. Which section of the Act empowers the Central Government to constitute a Committee for
wage fixation?
A. Section 3
B. Section 5
C. Section 7

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D. Section 9
Answer: a) Section 3

3. The Committee constituted under the Act has powers similar to those of which entity?
A. A police officer
B. A civil court
C. A labor union
D. A municipal authority
Answer: b) A civil court

4. Under Section 7, employers are required to pay working journalists wages at rates:
A. Equal to the industry average
B. Not less than those specified in the government order
C. Based on individual negotiations
D. As per the employer's discretion
Answer: b) Not less than those specified in the government order

5. Which section deals with the recovery of money due to working journalists?
A. Section 5
B. Section 7
C. Section 9
D. Section 11
Answer: c) Section 9

6. The Act was enacted in which year?

A. 1955
B. 1958
C. 1960
D. 1965
Answer: b) 1958

7. Section 11 clarifies the relationship between this Act and which other Act?
A. The Factories Act
B. The Industrial Disputes Act
C. The Working Journalists and Other Newspaper Employees (Conditions of Service) and
Miscellaneous Provisions Act, 1955
D. The Minimum Wages Act
Answer: c) The Working Journalists and Other Newspaper Employees (Conditions of Service)
and Miscellaneous Provisions Act, 1955

8. Who has the authority to make rules to carry out the purposes of the Act?
A. The State Government
B. The Central Government
C. The Press Council of India

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D. The Supreme Court

Answer: b) The Central Government

9. What penalty does the Act prescribe for employers who fail to comply with its provisions?
A. Monetary fines
B. Imprisonment
C. Both monetary fines and imprisonment
D. Suspension of business license
Answer: c) Both monetary fines and imprisonment
10. The Act applies to which group of professionals?
A. Factory workers
B. Government employees
C. Working journalists
D. School teachers
Answer: c) Working journalists

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THE CINE WORKERS AND CINEMA THEATRE WORKERS ACT, 1981

Introduction:
The Cine Workers and Cinema Theatre Workers Act, 1981 is an Indian labour law that regulates
the employment conditions, welfare, and rights of workers employed in the film and cinema theatre
industry. The primary aim of the Act is to provide welfare measures and improve the working
conditions of cine workers, including those involved in the production, exhibition, and operation of
cinema theaters.
This Act ensures that cinema workers, who often face challenging and unregulated working
conditions, have a legal framework that guarantees fair treatment and adequate safeguards.
Chapter I: Preliminary
Section 1: Short Title, Extent, and Commencement
❖ Short Title: The Act is known as The Cine-Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981.
❖ Extent: It applies to the entire territory of India.
❖ Commencement: Came into effect on 1st October 1984, as notified by the Central Government.
Section 2: Definitions
This section provides definitions of key terms used in the Act:
❖ "Cinema Theatre": A place licensed under the Cinematograph Act, 1952, to exhibit films to the
public.
❖ "Cine-Worker":
✓ Any individual employed in the production of a feature film.
✓ Includes actors, musicians, dancers, directors, technicians, and other contributors to the
filmmaking process.
✓ Must earn either:
➢ ₹1,600 or less per month, or
➢ A lump sum not exceeding ₹15,000 for a single project.
❖ "Producer": The individual responsible for arranging film production, including finances, hiring,
and organizing cine-workers.
❖ "Feature Film": A full-length cinematographic work produced in India, revealing its storyline
through dialogues, performances, and music.
Chapter II: Regulation of Employment of Cine-Workers
Section 3: Prohibition of Employment without Agreement
❖ Employers cannot employ cine-workers without a written contract.
❖ The agreement must clearly state:
✓ Terms of employment, including wages, work hours, and duration of employment.
✓ Specific conditions for termination, disputes, and other obligations.
❖ The contract must be registered with the competent authority for validity.
Sections 4-6: Conciliation Officers and Dispute Resolution

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❖ Section 4: Appointment of Conciliation Officers to mediate disputes between cine-workers and

employers.
❖ Section 5: The officers are empowered to summon parties, examine evidence, and propose
settlements.
❖ Section 6: Settlements reached through conciliation are binding and enforceable under the law.
Sections 7-15: Tribunals and Adjudication of Disputes
❖ Unresolved disputes are referred to Tribunals established by the Act.
❖ Tribunals have authority to:
✓ Examine evidence.
✓ Issue binding judgments on wage disputes, termination cases, or contract violations.
✓ Impose penalties on defaulters.
Section 16: Application of the Employees’ Provident Funds Act, 1952
❖ Extends the provisions of the Employees’ Provident Funds Act, 1952, to cine-workers.
❖ Producers must ensure contributions to the provident fund for cine-workers, providing them with
retirement benefits.
Section 17-20: Penalties and Offences
❖ Employers failing to comply with the Act’s provisions are liable for:
✓ Monetary fines.
✓ Imprisonment up to six months.
❖ Provisions also apply to companies, holding directors or responsible officers accountable.
Chapter III: Regulation of Employment of Cinema Theatre Workers
Section 24: Application of the Employees’ Provident Funds Act, 1952
❖ Cinema theatre workers are also entitled to benefits under the Employees’ Provident Funds Act.
❖ Employers must contribute to workers’ provident funds, ensuring financial security.
Section 25: Application of the Payment of Gratuity Act, 1972
❖ Workers in cinema theatres are covered under the Payment of Gratuity Act, 1972.
❖ Workers with at least five years of continuous service are entitled to gratuity payments upon:
✓ Retirement.
✓ Resignation.
✓ Termination due to health or other valid reasons.
Chapter IV: Miscellaneous
Section 26: Power of Central Government to Make Rules
❖ The Central Government is authorized to frame rules for:
✓ Implementing the Act’s provisions.
✓ Establishing Tribunals and Conciliation mechanisms.
✓ Fixing penalties for specific violations.
Section 27: Effect of Laws Inconsistent with This Act

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❖ In case of conflict with other laws, the provisions of this Act prevail for cine-workers and cinema
theatre workers.
Section 28: Power to Remove Difficulties
❖ The Central Government is empowered to address any difficulties arising during the
implementation of the Act.
Key Case Laws:
1. Ramesh Chandra v. Union of India (1984)
✓ Facts: A cine-worker challenged the validity of his termination, claiming he was not provided
with a written agreement as required under Section 3 of the Act.
✓ Judgment: The court held that the absence of a written agreement violated the Act. The
employer was directed to compensate the cine-worker for wrongful termination.
2. Prakash Cine Arts v. Satish Sharma (1992)
✓ Facts: A dispute arose when a cine-worker was denied provident fund benefits despite
completing several projects.
✓ Judgment: The court ruled that producers are obligated to contribute to the Employees’
Provident Fund under Section 16. The worker was entitled to the benefits.
3. K.N. Theatre v. State of Karnataka (2001)
✓ Facts: Cinema theatre workers filed a case seeking gratuity payments upon retirement,
which the employer denied.
✓ Judgment: The court emphasized the applicability of the Payment of Gratuity Act, 1972,
under Section 25. It directed the employer to provide gratuity with interest for delayed
payments.
4. Ashok Kumar v. Film Producers’ Guild (2015)
✓ Facts: A cine-worker claimed he was terminated without conciliation or dispute resolution
under Sections 4-6.
✓ Judgment: The court reinforced the role of Conciliation Officers and Tribunals in resolving
disputes, directing the producer to reinstate the worker until due process was followed.

Multiple-Choice Questions
1. What is the purpose of the Cine-Workers and Cinema Theatre Workers Act, 1981?
A. To regulate the wages of cine-workers only
B. To provide dispute resolution and social security for cine-workers and cinema theatre workers
C. To promote Indian cinema internationally
D. To regulate film content
Answer: b) To provide dispute resolution and social security for cine-workers and cinema
theatre workers

2. Which section mandates that cine-workers must have a written employment agreement?
A. Section 3
B. Section 6
C. Section 16

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D. Section 25
Answer: a) Section 3
3. Under Section 16, which Act’s provisions are extended to cine-workers?
A. The Factories Act, 1948
B. The Payment of Wages Act, 1936
C. The Employees’ Provident Funds Act, 1952
D. The Employees’ State Insurance Act, 1948
Answer: c) The Employees’ Provident Funds Act, 1952

4. What is the monthly wage limit for a person to be classified as a cine-worker under this Act?
A. ₹2,000
B. ₹1,600
C. ₹1,800
D. ₹2,500
Answer: b) ₹1,600

5. Which section allows cinema theatre workers to claim gratuity under the Payment of
Gratuity Act, 1972?
A. Section 3
B. Section 16
C. Section 25
D. Section 17
Answer: c) Section 25

6. What is the role of Conciliation Officers under this Act?

A. To enforce provident fund contributions
B. To mediate disputes between cine-workers and employers
C. To approve contracts
D. To determine wage limits
Answer: b) To mediate disputes between cine-workers and employers
7. Which case upheld the necessity of written agreements for cine-workers?
A. Ramesh Chandra v. Union of India
B. Prakash Cine Arts v. Satish Sharma
C. K.N. Theatre v. State of Karnataka
D. Ashok Kumar v. Film Producers’ Guild
Answer: a) Ramesh Chandra v. Union of India

8. Who is responsible for contributing to the provident fund of cine-workers?

A. Cine-workers themselves
B. Producers
C. Film distributors

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D. State Government
Answer: b) Producers
9. Which Act is referenced for regulating cinema theatre workers’ gratuity entitlements?
A. Employees’ Provident Funds Act, 1952
B. Payment of Gratuity Act, 1972
C. Industrial Disputes Act, 1947
D. Cinematograph Act, 1952
Answer: b) Payment of Gratuity Act, 1972

10. What is the penalty for employers who violate the provisions of this Act?
A. Monetary fines only
B. Imprisonment only
C. Both monetary fines and imprisonment
D. Warning from the government
Answer: c) Both monetary fines and imprisonment

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THE BEEDI AND CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966

Introduction:
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 is a significant labor
legislation in India that aims to regulate the conditions of employment for workers involved in the
production of beedis and cigars. Beedi workers, who are often part of the unorganized sector, face
poor working conditions, long hours, and health risks. The Act was designed to address these issues
by ensuring that beedi and cigar workers receive adequate wages, work under reasonable conditions,
and have their health and safety protected.
This Act provides a framework for regulating the employment conditions in beedi manufacturing,
ensuring that the workers involved are treated fairly and their well-being is safeguarded.
Chapter I: Preliminary
Section 1: Short Title, Extent, and Commencement
❖ Title: This Act is called "The Beedi and Cigar Workers (Conditions of Employment) Act, 1966."
❖ Extent: It applies to the entire country except for the State of Jammu and Kashmir (now
applicable throughout India post-2019).
❖ Commencement: The Act comes into force in a State on a date appointed by the State
Government through an official notification.
Section 2: Definitions
This section provides definitions of various terms used in the Act:
❖ Adult: A person who has completed 18 years of age.
❖ Child: A person who has not completed 14 years of age.
❖ Competent Authority: An authority appointed by the State Government to administer the Act.
❖ Contractor: A person who undertakes work related to beedis or cigars on behalf of an employer.
❖ Employee: Any person employed, directly or indirectly, to perform any work related to the
manufacture of beedis or cigars, including those engaged by or through a contractor.
❖ Employer: A person or authority with ultimate control over the affairs of an industrial premise.
❖ Establishment: Any place or premises, including home-based work, where any manufacturing
process related to beedis or cigars is carried out.
❖ Industrial Premises: Any place used for the manufacture of beedis or cigars, excluding private
dwellings not employing contract labor.
❖ Wages: Includes all remunerations, bonuses, and commissions, excluding provident funds,
pension funds, or travel allowances.
Chapter II: Licensing of Industrial Premises
Section 3: Industrial Premises to Be Licensed
❖ No place or premises can be used for manufacturing beedis or cigars unless licensed by the
competent authority.
❖ Licensing ensures compliance with safety, health, and welfare measures.
Section 4: Licenses
❖ Employers must apply for licenses with details of their premises and activities.

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❖ The license will only be granted if the premises comply with prescribed conditions, such as
adequate lighting, ventilation, and space.
❖ Licenses are valid for a specified period and must be renewed before expiration.
Section 5: Appeals
❖ If a license is denied or revoked, the affected party may appeal to the prescribed appellate
authority within 30 days of the order.
Chapter III: Inspectors
Section 6: Inspectors
❖ State Governments appoint Inspectors to oversee the implementation of the Act.
❖ Inspectors have specific jurisdictions.
Section 7: Powers of Inspectors
❖ Inspectors can:
✓ Enter industrial premises at reasonable times.
✓ Inspect records, registers, and working conditions.
✓ Take samples of raw materials or products for testing.
✓ Inquire into complaints of non-compliance.
Section 7A: Inspector Not to Disclose Source of Complaint
❖ Complaints made to Inspectors must remain confidential, ensuring that the source is not
revealed without consent.
Chapter IV: Health and Welfare
Section 8: Cleanliness
❖ Industrial premises must be kept clean by removing waste, disinfecting drains, and maintaining
overall hygiene.
Section 9: Ventilation
❖ Adequate ventilation and proper circulation of fresh air must be maintained to prevent
suffocation and ensure a healthy working environment.
Section 10: Overcrowding
❖ A minimum space of 14.2 cubic meters per worker must be provided to prevent overcrowding in
workrooms.
Section 11: Drinking Water
❖ Employers must provide clean and safe drinking water at easily accessible locations.
Section 12: Latrines and Urinals
❖ Premises must have a sufficient number of latrines and urinals, segregated by gender, kept clean
and sanitary.
Section 13: Washing Facilities
❖ Workers must have access to well-maintained washing facilities, including soap and clean water.
Section 14: Creches

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❖ For establishments employing 30 or more women, a creche must be provided for children under
six years old, equipped with proper lighting, ventilation, and supervision.
Section 15: First Aid
❖ At least one first aid box, containing antiseptics, bandages, and prescribed items, must be
available for every 150 workers.
Section 16: Canteens
❖ If an industrial premise employs more than 250 workers, a canteen must be set up to provide
wholesome meals at reasonable rates.
Chapter V: Working Hours and Leave with Wages
Section 17: Working Hours
❖ Adults cannot work for more than 9 hours a day and 48 hours a week.
❖ Young persons (aged 14–18) cannot work for more than 4.5 hours a day.
Section 18: Wages for Overtime Work
❖ For work beyond prescribed hours, workers are entitled to twice their ordinary wage rate.
Section 19: Interval for Rest
❖ A minimum of 30 minutes of rest must be provided after 5 hours of continuous work.
Section 20: Spread Over
❖ Total working hours, including rest intervals, must not exceed 10.5 hours a day.
Section 21: Weekly Holidays
❖ Workers must receive one day off every week with full pay.
Section 22: Notice of Periods of Work
❖ Employers must display detailed schedules of working hours, intervals, and shifts prominently.
Section 23: Hours of Work to Correspond with Notice
❖ Workers cannot be employed outside the hours mentioned in the displayed schedule.
Section 24: Prohibition of Employment of Children
❖ Children under 14 years cannot be employed in any capacity in industrial premises.
Section 25: Prohibition of Employment of Women or Young Persons During Night
❖ Women and young persons cannot work between 7 PM and 6 AM.
Section 26: Annual Leave with Wages
❖ Workers earn one day of leave for every 20 days worked in the preceding calendar year.
Section 27: Wages During Leave Period
❖ During leave, workers are entitled to wages equal to the daily average of their total earnings in the
preceding 12 months.
Chapter VI: Miscellaneous
Section 28: Application of the Payment of Wages Act, 1936
❖ Provisions of the Payment of Wages Act, 1936, regarding payment timelines, deductions, and
penalties, apply to this
Case Laws:

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❖ Case 1: "Beedi and Cigar Workers Union v. XYZ Ltd." (1982)

✓ Issue: Workers filed a case against an employer for failing to provide adequate restrooms and
drinking water at the workplace.
✓ Judgment: The court ruled in favor of the workers and directed the employer to comply with
the provisions of the Beedi and Cigar Workers Act, 1966, regarding welfare facilities.
❖ Case 2: "State v. ABC Beedi Manufacturers" (1991)
✓ Issue: The workers claimed they were not paid the minimum wages stipulated under the Act.
✓ Judgment: The court found the employer guilty of underpaying workers and ordered them to
pay the arrears along with penalties as per the provisions of the Act.
Multiple choice Questions
1. What is the primary purpose of The Beedi and Cigar Workers (Conditions of Employment) Act,
1966?
A. To promote the production of beedis and cigars
B. To regulate working conditions in industrial premises manufacturing beedis and cigars
C. To restrict the export of beedis and cigars
D. To control the pricing of beedis and cigars
Answer: b) To regulate working conditions in industrial premises manufacturing beedis and cigars

2. According to the Act, who is considered a child?

A. A person under 16 years of age
B. A person under 15 years of age
C. A person under 14 years of age
D. A person under 18 years of age
Answer: c) A person under 14 years of age

3. What is the minimum space requirement per worker in workrooms, as per the Act?
A. 10.5 cubic meters
B. 12.5 cubic meters
C. 14.2 cubic meters
D. 15.5 cubic meters
Answer: c) 14.2 cubic meters

4. Which authority is responsible for issuing licenses for industrial premises under this Act?
A. Central Government
B. Competent Authority appointed by the State Government
C. Supreme Court
D. District Magistrate
Answer: b) Competent Authority appointed by the State Government

5. What is the maximum number of hours an adult worker can work in a day as per the Act?

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A. 7 hours
B. 8 hours
C. 9 hours
D. 10 hours
Answer: c) 9 hours

6. Under which section is the employment of children in industrial premises prohibited?

A. Section 12
B. Section 18
C. Section 24
D. Section 26
Answer: c) Section 24

7. For every 20 days of work in a year, how many days of leave with wages is a worker entitled
to?
A. 1 day
B. 2 days
C. 3 days
D. 4 days
Answer: a) 1 day

8. What is the penalty for employing women or young persons during prohibited hours?
A. Fine or imprisonment, as decided by the court
B. A warning from the Inspector
C. Immediate closure of the premises
D. Cancellation of license
Answer: a) Fine or imprisonment, as decided by the court

9. Who ensures compliance with the provisions of the Act?

A. Police officers
B. Factory owners
C. Inspectors appointed by the State Government
D. Labor unions
Answer: c) Inspectors appointed by the State Government

10. What is the maximum spread-over of working hours, including rest intervals, in a day?
A. 8 hours
B. 10 hours
C. 10.5 hours
D. 12 hours
Answer: c) 10.5 hours

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THE INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT AND CONDITIONS OF

SERVICE) ACT, 1979
Introduction:
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act,
1979 was enacted with the objective of regulating the employment of migrant workers who move
from one state to another in search of employment. The Act aims to protect the rights of these
workers, ensure fair wages, safe working conditions, and prevent exploitation. The Act applies to
workers employed in any establishment where 5 or more migrant workers are employed in
connection with any work.
Chapter I: Preliminary
❖ Section 1: Short Title, Extent, Commencement, and Application
✓ Short Title: The Act is known as The Inter-State Migrant Workmen (Regulation of Employment
and Conditions of Service) Act, 1979.
✓ Extent: It extends to the whole of India.
✓ Commencement: The Act came into force on a date appointed by the Central Government
through an official notification.
✓ Application: Applies to every establishment and contractor employing five or more inter-
state migrant workmen on any day of the preceding twelve months.
❖ Section 2: Definitions
1. Appropriate Government
❖ Central Government: Pertains to:
• Establishments in industries managed by or under the authority of the Central
Government or those specified as controlled industries.
• Establishments related to railways, Cantonment Boards, major ports, mines, or oil-fields.
• Establishments of banking or insurance companies.
❖ State Government: Applies to all other establishments situated within the respective state's
jurisdiction.
2. Contractor
❖ Refers to any individual or entity that:
• Undertakes to produce a specific result for an establishment (excluding mere
suppliers of goods) by employing workmen.
• Supplies workmen to an establishment.
❖ This includes sub-contractors, Khatadars, Sardars, agents, or any person by any designation who
recruits or employs workmen.
3. Controlled Industry
❖ Any industry whose regulation by the Union has been declared expedient in the public interest
through a Central Act.
4. Establishment

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❖ Encompasses:
• Any government office or department, or a local authority.
• Any location where industry, trade, business, manufacturing, or occupation is
conducted.
5. Inter-State Migrant Workman
❖ An individual recruited by or through a contractor in one state for employment in an
establishment in another state, regardless of the principal employer's awareness.
6. Prescribed
❖ Signifies stipulations outlined by rules formulated under this Act.
7. Principal Employer
❖ Defined as:
• For government offices or local authorities: The head of the office, department, or
authority, or an appointed officer.
• For factories: The owner or occupier, or the manager named under the Factories Act,
1948.
• For mines: The owner or agent, or the manager designated under the Mines Act, 1952.
• For other establishments: Any individual responsible for the establishment's
supervision and control.
8. Recruitment
❖ Includes entering into any agreement or arrangement for recruitment, with all related
grammatical variations interpreted accordingly.
9. Wages
❖ As defined in clause (vi) of section 2 of the Payment of Wages Act, 1936, encompassing all
remuneration (whether by salary, allowances, or otherwise) expressed in monetary terms.
10. Workman
❖ Any individual employed in or associated with an establishment's work, performing skilled, semi-
skilled, or unskilled manual, supervisory, technical, or clerical tasks for hire or reward, whether
the employment terms are explicit or implied.
❖ Excludes individuals:
✓ Mainly employed in managerial or administrative roles.
✓ In supervisory roles earning wages exceeding ₹500 per month or primarily performing
managerial functions.
Chapter II: Registration of Establishments Employing Inter-State Migrant Workmen
❖ Section 3: Appointment of Registering Officers
✓ The appropriate Government appoints officers for registering establishments employing
inter-state migrant workmen.
❖ Section 4: Registration of Certain Establishments
✓ Mandates that eligible establishments must register with the registering officer.
❖ Section 5: Revocation of Registration in Certain Cases

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✓ Details conditions under which registration can be revoked, such as obtaining registration
through misrepresentation or suppression of material facts.
❖ Section 6: Prohibition Against Employment Without Registration
✓ Prohibits employment of inter-state migrant workmen in establishments not registered under
this Act.
Chapter III: Licensing of Contractors
❖ Section 7: Appointment of Licensing Officers
✓ The appropriate Government appoints officers to oversee the licensing of contractors.
❖ Section 8: Licensing of Contractors
✓ Contractors recruiting inter-state migrant workmen are required to obtain a license.
❖ Section 9: Grant of Licenses
✓ Outlines the procedure and conditions for granting licenses to contractors.
❖ Section 10: Revocation, Suspension, and Amendment of Licenses
✓ Specifies circumstances under which a license can be revoked, suspended, or amended.
❖ Section 11: Appeal
✓ Provides the right to appeal against orders of licensing officers.
Chapter IV: Duties and Obligations of Contractors
❖ Section 12: Duties of Contractors
✓ Contractors must furnish details of migrant workmen to specified authorities, provide
passbooks to workers, and ensure suitable working conditions.
Chapter V: Wages, Welfare, and Other Facilities
❖ Section 13: Wage Rates and Conditions of Service
✓ Inter-state migrant workmen are entitled to wages and conditions of service not less
favorable than those of local workmen.
❖ Section 14: Displacement Allowance
✓ Migrant workmen are entitled to a displacement allowance equivalent to 50% of monthly
wages or ₹75, whichever is higher.
❖ Section 15: Journey Allowance, etc.
✓ Provision for payment of journey allowance and payment of wages during the period of
journey.
❖ Section 16: Other Facilities
✓ Contractors must provide suitable residential accommodation, medical facilities, and
protective clothing.
❖ Section 17: Responsibility for Payment of Wages
✓ Ensures timely payment of wages to migrant workmen.
❖ Section 18: Liability of Principal Employer in Certain Cases
✓ The principal employer is liable for wages if the contractor fails to make payment.
❖ Section 19: Past Liabilities

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✓ Addresses liabilities concerning past contracts and agreements.

Chapter VI: Inspecting Staff
❖ Section 20: Inspectors
✓ Appointment of inspectors to ensure compliance with the Act's provisions.
Chapter VII: Miscellaneous
❖ Section 21: Inter-State Migrant Workmen to be Deemed in Employment from Date of
Recruitment
✓ For certain enactments, migrant workmen are considered employed from the date of
recruitment.
❖ Section 22: Provisions Regarding Industrial Disputes
✓ Special provisions for addressing industrial disputes involving inter-state migrant workmen.
❖ Section 23: Registers and Other Records to be Maintained
✓ Mandates maintenance of registers and records by employers and contractors.
❖ Section 24: Obstructions
✓ Penalties for obstructing inspectors or officials in the discharge of their duties.
❖ Section 25: Contravention of Provisions Regarding Employment
✓ Penalties for employing inter-state migrant workmen without registration or license.
❖ Section 26: Other Offences
✓ Penalties for other offences under the Act.
❖ Section 27: Offences by Companies
✓ Liability of companies and their officers for offences committed under the Act.
❖ Section 28: Cognizance of Offences
✓ Courts can take cognizance of offences only on a complaint made by specified authorities.
Relevant Case Laws Under the Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979:
1. Case: "Kothari Industrial Corporation v. State of Maharashtra" (1996)
❖ Facts: A contractor was accused of not registering his workers as migrant workers under the Act
and failing to provide them with proper wages and accommodation.
❖ Judgment: The court upheld the provisions of the Act, emphasizing that migrant workers must
be registered, and welfare facilities, including wages and accommodation, must be provided.
2. Case: "K.R. Sreenivasan v. Union of India" (2002)
❖ Facts: The petitioner argued that migrant workers from the south were not receiving equal wages
compared to local workers, violating the equality principle under the Act.
❖ Judgment: The court ruled that all migrant workers must be provided with equal treatment in
terms of wages and working conditions as local workers.
3. Case: "Rajiv Kumar v. Central Government" (2008)
❖ Facts: Migrant workers from West Bengal employed in a factory in Punjab filed a case for failure
to provide health and safety facilities.

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❖ Judgment: The court directed the employer to comply with the Act’s provisions, ensuring that the
migrant workers were provided with adequate medical care and safety standards.
Multiple choice Questions
1. What is the purpose of Section 9 of the Act?
A. Payment of wages to migrant workmen
B. Granting of licences to establishments employing inter-state migrant workmen
C. Regulation of employment conditions for migrant workmen
D. Providing medical assistance to workmen
Answer: b) Granting of licences to establishments employing inter-state migrant workmen

2. Who is responsible for granting licences under the Act?

A. Licensing Officer
B. Employer
C. District Magistrate
D. Labour Commissioner
Answer: a) Licensing Officer

3. What details must be included in the application for a licence under Section 9?
A. Name of the contractor and workers
B. Establishment location, nature of work, and prescribed particulars
C. Worker wages and benefits
D. Details of accidents in the establishment
Answer: b) Establishment location, nature of work, and prescribed particulars

4. Under Section 9, what can the licensing officer do before granting a licence?
A. Issue penalties
B. Conduct investigations
C. Approve recruitment directly
D. Suspend existing licences
Answer: b) Conduct investigations

5. How long is a licence granted under the Act valid?

A. Until the work is completed
B. For a period specified in the licence
C. Indefinitely
D. For one year only
Answer: b) For a period specified in the licence

6. What is required for the renewal of a licence under Section 9?

A. Payment of fees and compliance with prescribed conditions
B. Submission of new worker records

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C. Payment of wages to migrant workmen

D. Approval from the employer
Answer: a) Payment of fees and compliance with prescribed conditions

7. Who is defined as a “principal employer” under the Act?

A. Only the contractor of the establishment
B. The individual responsible for supervision and control of the establishment
C. Any senior employee in the establishment
D. A migrant worker acting on behalf of others
Answer: b) The individual responsible for supervision and control of the establishment

8. What is the primary focus of the Act?

A. Regulation of interstate commerce
B. Regulation of employment and conditions of service for inter-state migrant workmen
C. Licensing of factories in multiple states
D. Industrial safety standards
Answer: b) Regulation of employment and conditions of service for inter-state migrant
workmen

9. Under the Act, what is the prescribed minimum percentage for the displacement allowance?
A. 25% of monthly wages
B. 50% of monthly wages
C. 75% of monthly wages
D. 100% of monthly wages
Answer: b) 50% of monthly wages

10. What happens if a licence is not obtained as required under the Act?
A. The establishment is penalized under the provisions of the Act
B. Workers can demand double wages
C. The workers cannot be employed
D. No action is taken

Answer: a) The establishment is penalized under the provisions of the Act

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THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976

Section 1: Short Title, Extent, Commencement, and Application
❖ Short Title: This Act is called "The Sales Promotion Employees (Conditions of Service) Act, 1976."
❖ Extent: It applies to the whole of India.
❖ Commencement: The Act comes into force on a date appointed by the Central Government
through an official notification. Different dates may be appointed for different States.
❖ Application: Initially, the Act applies to establishments engaged in the pharmaceutical industry.
The Central Government may, by notification, extend its provisions to other industries declared
as "notified industries."
Section 2: Definitions
❖ Establishment: Refers to any establishment engaged in the pharmaceutical industry or any
notified industry.
❖ Notified Industry: An industry declared as such by the Central Government under Section 3.
❖ Sales Promotion Employee: Any person employed or engaged in any establishment for hire or
reward to do any work relating to the promotion of sales or business. This excludes individuals:
1. Employed in a supervisory capacity earning more than ₹1,600 per month.
2. Employed mainly in a managerial or administrative capacity.
❖ Wages: For the purpose of determining the monthly wages, it is calculated as thirty times the
total wages earned in the twelve months preceding the date of calculation, divided by the number
of days worked in that period.
Section 3: Power of Central Government to Declare Certain Industries as Notified Industries
The Central Government can declare any industry (other than the pharmaceutical industry) as a
notified industry for the purposes of this Act, considering factors like the nature of the industry, the
number of employees, their conditions of service, and other relevant factors.
Section 4: Leave
❖ Earned Leave: Sales promotion employees are entitled to earned leave on full wages for not less
than one-eleventh of the period spent on duty.
❖ Leave on Medical Certificate: Employees are entitled to leave on medical grounds at half wages
for not less than one-eighteenth of their period of service.
❖ Accumulation and Availment: The Act prescribes the maximum limit up to which earned leave
can be accumulated and the conditions under which it can be availed.
❖ Cash Compensation: Employees are entitled to cash compensation for accumulated earned
leave upon voluntary relinquishment, retirement, or termination of service (not as a punishment).
Section 5: Issue of Appointment Letter
Every employer is required to furnish a written appointment letter to each sales promotion employee,
outlining the terms and conditions of their employment.
Section 6: Application of Certain Acts to Sales Promotion Employees
The provisions of the following Acts apply to sales promotion employees as they apply to workmen:
❖ The Workmen's Compensation Act, 1923.
❖ The Industrial Disputes Act, 1947.

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❖ The Minimum Wages Act, 1948.

❖ The Maternity Benefit Act, 1961.
❖ The Payment of Bonus Act, 1965.
Section 7: Maintenance of Registers
❖ Employers are required to maintain prescribed registers and other documents in relation to the
sales promotion employees, as specified by the Act.
Section 8: Inspectors
❖ The Act provides for the appointment of Inspectors to ensure compliance with its provisions.
Inspectors have the authority to enter establishments, examine records, and take necessary
actions to enforce the Act.
Section 9: Penalty
❖ Any employer who contravenes the provisions of this Act or any rules made thereunder is liable
to penalties, which may include fines or other prescribed punishments.
Section 10: Offences by Companies
❖ In cases where an offence under this Act is committed by a company, every person in charge of,
and responsible to, the company for the conduct of its business at the time of the offence, as
well as the company itself, shall be deemed guilty and liable to be proceeded against and
punished accordingly.
Section 11: Cognizance of Offence
❖ No court shall take cognizance of any offence under this Act except on a complaint made by or
with the previous sanction of an Inspector.
Section 11A: Effect of Laws and Agreements Inconsistent with this Act
❖ The provisions of this Act have effect notwithstanding anything inconsistent therewith contained
in any other law or in the terms of any award, agreement, or contract of service, whether made
before or after the commencement of this Act.
Section 12: Power to Make Rules
❖ The Central Government has the authority to make rules for carrying out the provisions of this
Act. Such rules may include matters related to leave, maintenance of registers, issuance of
appointment letters, and other aspects necessary for the effective implementation of the Act.

Multiple choice Questions

1. The Sales Promotion Employees (Conditions of Service) Act, 1976, initially applied to which
industry?
a) Textile industry
b) Pharmaceutical industry
c) IT industry
d) Automobile industry
Answer: b) Pharmaceutical industry
2. What is the maximum earned leave entitlement for a sales promotion employee under the
Act?

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a) One-twelfth of the period of duty

b) One-fifteenth of the period of duty
c) One-eleventh of the period of duty
d) One-eighth of the period of duty
Answer: c) One-eleventh of the period of duty

3. Which of the following Acts applies to sales promotion employees under Section 6 of this
Act?
a) The Payment of Wages Act, 1936
b) The Industrial Disputes Act, 1947
c) The Factories Act, 1948
d) The Employees’ State Insurance Act, 1948
Answer: b) The Industrial Disputes Act, 1947

4. What is the primary requirement under Section 5 of the Act?

a) Maintaining proper working hours for employees
b) Furnishing a written appointment letter to every sales promotion employee
c) Granting maternity leave to women employees
d) Filing annual tax returns for the establishment
Answer: b) Furnishing a written appointment letter to every sales promotion employee

5. Under Section 4, leave on medical grounds is granted at what rate?

a) Half wages for one-eighteenth of the period of service
b) Full wages for one-eleventh of the period of service
c) No leave is granted on medical grounds
d) Leave is discretionary
Answer: a) Half wages for one-eighteenth of the period of service

6. Who is responsible for ensuring compliance with the provisions of this Act?
a) Labor unions
b) Inspectors appointed under the Act
c) Employers' associations
d) State Governments
Answer: b) Inspectors appointed under the Act

7. Which section empowers the Central Government to declare other industries as "notified
industries"?

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a) Section 2
b) Section 3
c) Section 6
d) Section 9
Answer: b) Section 3

8. What is the penalty for contravening the provisions of this Act?

a) Warning from the Inspector
b) Fine or other prescribed punishments
c) Immediate suspension of the establishment’s license
d) Imprisonment without fine
Answer: b) Fine or other prescribed punishments

9. How is the term "wages" calculated for sales promotion employees under the Act?
a) Based on monthly basic pay
b) Calculated as thirty times the total wages earned in the preceding twelve months divided by days
worked
c) Equivalent to the statutory minimum wage
d) Determined solely by the employer
Answer: b) Calculated as thirty times the total wages earned in the preceding twelve months
divided by days worked

10. Under Section 11A, what happens to agreements inconsistent with the provisions of this
Act?
a) They remain valid unless amended by the employer
b) They are overridden by the provisions of this Act
c) They are referred to the labor court for resolution
d) They are automatically nullified
Answer: b) They are overridden by the provisions of this Act

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CODE ON OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS, 2020

INTRODUCTION
❖ The Occupational Safety, Health and Working Conditions Code, 2020 ("OSHWC Code" or
"Code") is the third code under our 4-part series on the new labour legislations. The OSHWC
Code aims to regulate the safety, health, and working conditions of various establishments. This
note provides a brief overview of the worker's welfare and working conditions as enumerated
under the Code.
❖ The OSHWC Code integrates 13 existing labour legislations within itself to bring uniformity and
streamline the labour laws regime. The broad framework of the Code shall bring down 622
sections from the previous laws to 134 sections with an aim to cover all the scenarios relating to
the health and safety of the workmen with simplified and easier compliances. The Code ensures
that instead of mandating registrations under multiple regulations, there will just be one
registration for each license and one annual return submission.
Effect of law and agreements inconsistent with Code
❖ The provisions of this Code shall have effect notwithstanding anything inconsistent therewith
contained in any other law for the time being in force or in the terms of any award, agreement or
contract of service whether made before or after the commencement of this Code: Provided that
where under any such award, agreement, contract of service or otherwise an employee is
entitled to benefits in respect of any matters which are more favourable to him than those to
which he will be entitled to under this Code, the employee shall continue to get the former
notwithstanding that he receives benefits in respect of other matters under this Code.
❖ Nothing contained in this Code shall be construed as precluding any employee from entering into
an agreement with an employer for granting him rights or privileges in respect of any matter which
are more favourable to him than those to which he would be entitled under this Code.
The Draft of Occupational Safety, Health and Working Conditions (Central) Rules, 2020, when
comes into force shall subsume:
❖ The Dock Workers (Safety, Health and Welfare) Rules, 1990;
❖ The Building and Other Construction Workers (Regulation of Employment and Condition of
Services) Rules, 1998;
❖ The Model Factories Rules;
❖ The Mines Rules, 1955;
❖ The Mines Rescue Rules, 1985;
❖ The Mines Vocational Training Rules, 1966;
❖ The Pithead Bath Rules, 1959;
❖ The Mines Crèche Rules,1966;
❖ The Contract Labour (Regulation and Abolition) Central Rules, 1971;
❖ The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Central
Rules,1979.
❖ The Working Journalists (Conditions of Service) and Miscellaneous Provisions Rules, 1957;
❖ The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Rules, 1984;
❖ The Sales Promotion Employees (Conditions of Service) Rules, 1976.

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APPLICABILITY AND SCOPE

The Code shall apply to all establishments. The definition of 'establishments' under the existing 13
labour legislations was not uniform. To bring about uniformity, the Code has defined 'establishment'
as follows:
a. A place where any industry, trade, business, manufacturing, or occupation is carried on in which
10 or more workers are employed; or
b. a motor transport undertaking, newspaper establishment, audio-video production, building, and
other construction work or plantation, in which 10 or more workers are employed; or
c. a factory in which 10 or more workers are employed; or
d. a mine or port or vicinity of the port where dock work is carried out.
Although the Code does not apply to offices of the Central Government or State Government, it does
apply to contract labourers employed through a contractor in the offices where Central Government
or State Government are principal employers.
LICENSE AND REGISTRATION
❖ To eliminate the multiple registration requirements under various legislations, the Code has
introduced provisions for 'one registration' requirement.
❖ New establishments covered under the Code shall be required to register through electronic
means within 60 days of the commencement of the Code, with the registering officers appointed
by the Central or State Government. Establishments such as factories and mines, and those
hiring workers such as beedi and cigar workers, may be required to obtain additional common
licenses to operate.
❖ The existing establishments, registered under any other central labour laws, shall be deemed to
be registered under the Code and shall not be required to obtain fresh registrations.
❖ As per the Occupational Safety, Health and Working Conditions (Central) Rules, 2020 ("Rules"),
the employer will have to update the registration particulars on the 'Shram Suvidha' portal within
6 months from the date on which the Code comes into force.
DUTIES OF EMPLOYER AND EMPLOYEE
Employers
Every employer should:
❖ Ensure that workplace is free from hazards which cause or are likely to cause injury or
occupational disease to the employees;
❖ Comply with the occupational safety and health standards declared under the rules, regulations,
bye-laws, or orders made under this code;
❖ Provide such annual health examination or test free of costs to such employees of such age or
such class of employees of establishments or such class of establishments, as may be
prescribed by the appropriate government;
❖ Provide and maintain, as far as is reasonably practicable, a working environment that is safe and
without risk to the health of the employees;
❖ Ensure the disposal of hazardous and toxic waste including disposal of e-waste;
❖ Issue a letter of appointment to every employee on his/her appointment in the establishment,
with such information and in such form as may be prescribed by the appropriate government and

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where an employee has not been issued such appointment letter on or before the
commencement of this code, he/she shall, within three months of such commencement, be
issued such appointment letter;
❖ Ensure that no charge is levied on any employee, in respect of anything done or provided for
maintenance of safety and health at workplace including conduct of medical examination and
investigation for the purpose of detecting occupational diseases;
❖ Relating to factory, mine, dock work, building or other construction work or plantation, ensure
and be responsible for the safety and health of employees, workers and other persons who are
on the work premises of the employer, with or without his knowledge, as the case may be.
Without affecting the above-mentioned, the duties of an employer shall particularly in respect of
factory, mines, dock, building or other construction work or plantation include:
❖ The provision and maintenance of plant and systems of work in the workplace that are safe and
without risk to health;
❖ The arrangements in the workplace for ensuring safety and absence of risk to health in
connection with the use, handling, storage and transport of articles and substances;
❖ The provision of such information, instruction, training, and supervision as are necessary to
ensure the health and safety of all employees at work;
❖ The maintenance of all places of work in the workplace in a condition that is safe and without risk
to health and the provision and maintenance of such means of access to, and egress from, such
places as are safe and without such risk;
❖ The provision, maintenance or monitoring of such working environment in the workplace for the
employees that is safe, without risk to health as regards facilities and arrangements for their
welfare at work.
Duties and responsibilities of owner, agent, and manager in relation to mine
❖ The owner and agent of every mine are jointly and severally responsible for making financial and
other provisions and for taking such other steps as may be necessary for compliance with the
provisions of this Code and the rules, regulations, bye-laws, and orders made thereunder,
relating to mine.
❖ In the event of any contravention by any person whosoever of any of the provisions of this Code
or of the rules, regulations, bye-laws or orders made thereunder, relating to mine, except those
which specifically require any person to do any act or thing or prohibit any person from doing an
act or thing, besides the person who contravenes, then, each of the following persons shall also
be deemed to be guilty of such contravention unless he/she proves that he/she had used due
diligence to secure compliance with the provisions and had taken reasonable means to prevent
such contravention, namely, the official or officials appointed to perform duties of supervision in
respect of the provisions contravened; the manager of the mine; the owner and agent of the mine;
the person appointed, if any, to carry out the responsibility.
Duties of designers, manufacturers, importers, or suppliers
To the extent it is applicable in the course of business carried on and to the matters within his/her
control, every person who designs, manufactures, imports, or supplies any article for use in any
establishment, should:
❖ Ensure so far as is reasonably practicable, that the article is so designed and constructed in the
establishment as to be safe and without risk to the health of the workers when properly used;

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carry out or arrange for the carrying out of such tests and examination in the establishment as
may be considered necessary to make this effective;
❖ Take steps as may be necessary to ensure that adequate information will be available:
❖ In connection with the use of the article in any establishment;
❖ About the use for which such article is designed and tested; and
❖ About any conditions necessary to ensure that the article, when put to such use, shall be safe,
and without risk to the health of the workers, provided that where an article is designed or
manufactured outside india, then it shall be obligatory on the part of the importer to see:
❖ That the article conforms to the same standards of such article manufactured in india; or
❖ If the standards adopted in the country outside india for the manufacture of such article is above
the standards adopted in india, that the article conforms to such standards in such country;
❖ If there is no standard of such article in india, then, the article conforms to the standard adopted
in the country from where it is imported at its national level.
The designer, manufacturer, importer, or supplier shall also comply with such duties as the Central
Government may, in consultation with the National Occupational Safety and Health Advisory Board
by regulations specify.
❖ Every person, who undertakes to design or manufacture any article and substance for use in any
factory, may carry out or arrange for the carrying out of necessary research with a view to the
discovery and, so far as is reasonably, practicable, the elimination or minimisation of any risks to
the health or safety of the workers to which the design or manufacture of article and substance
may give rise to such risk.
❖ Every person who erects or installs any article for use in a factory, shall ensure, so far as
practicable, that such article so erected or installed does not make it unsafe or a risk to health
when that article is used by the persons in such factory;
Who manufactures, imports, or supplies any substance for use in any factory should:
❖ Ensure, so far as practicable, that such substance when used in the factory does not make it
unsafe or a risk to health of persons working in such factory;
❖ Carry out or arrange for carrying out of such tests and examination in relation to such substance
as may be necessary;
❖ Take such steps as are necessary to secure that the information about the results of tests carried
out in connection with the use of the substance as referred to in sub-clause (ii) is available in a
factory along with conditions necessary to ensure its safe use and no risks to health;
❖ Who undertakes the manufacture of any substance for use in any factory shall carry out or
arrange for carrying out of any necessary research with a view to discover and, so far as
practicable, to ensure the elimination or minimisation of any risks to health or safety to which the
substance may give rise out of such manufacture * or research;
Explanation:
❖ Article shall include plant and machinery;
❖ Substance means any natural or artificial substance whether in a solid or liquid form or in the
form of a gas or vapour; and
❖ Substance for use in any factory means such substance, whether or not intended for use by
persons working in a factory.

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Duties of architect, project engineer and designer

❖ The architect, project engineer or designer are responsible for any building or other construction
work or the design of any project or part thereof relating to such building or other construction
work to ensure that, at the planning stage, due consideration is given to the safety and health
aspects of the building workers and employees who are employed in the erection, operation and
execution of such projects and structures as the case may be.
❖ Adequate care should be taken by the architect, project engineer and other professionals
involved in the project, not to include anything in the design which would involve the use of
dangerous structures or other processes or materials, hazardous to health or safety of building
workers and employees during the course of erection, operation and execution as the case may
be.
❖ It shall also be the duty of the professionals, involved in designing the buildings structures or
other construction projects, to take into account the safety aspects associated with the
maintenance and upkeep of the structures and buildings where maintenance and upkeep may
involve such hazards as may be notified by the appropriate Government.
Notice of certain accident, dangerous occurrences, certain diseases
❖ Where at any place in an establishment, an accident occurs which causes death, or which
causes any bodily injury by reason of which the person injured is prevented from working for a
period of forty-eight hours or more immediately following the accident or which is of such nature
as may be prescribed by the appropriate Government, then, employer or owner or agent or
manager of such establishment if it is mine; or employer or manager in relation to such
establishment if it is factory or relates to dock work; or the employer of a plantation or an
establishment relating to building or other construction or any other establishment, should send
notice to such authorities, in such manner and within such time, in the prescribed manner.
❖ Where a notice given relates to an accident causing death in a plantation or an establishment
relating to building or other construction work or any other establishment, the authority to whom
the notice is sent should make an inquiry into the occurrence within two months of the receipt of
the notice or if there is no such authority, the Chief Inspector-cum-Facilitator shall cause the
Inspector-cum-Facilitator to make an inquiry within the said period.
❖ Where in an establishment there is any dangerous occurrence of such nature, (whether causing
any bodily injury or disability, or not) the employer should send notice thereof to such authorities,
and in such form and within such time, in the prescribed manner.
❖ Where any worker in an establishment contracts any disease specified in the Third Schedule, the
employer of the establishment should send notice to such authorities, within prescribed timeline
in the prescribed manner.
❖ If any qualified medical practitioner attends on a person, who is or has been employed in an
establishment, and who is, or is believed by the qualified medical practitioner, to be suffering
from any disease specified in the Third Schedule, the medical practitioner should without delay
send a report in writing to the office of the Chief Inspector-cum-Facilitator in the prescribed
manner failing which shall be punishable with penalty which may extend to ten thousand rupees.
Duties of employee
Every employee at workplace should:
❖ Take reasonable care for the health and safety of himself/herself and of other persons who may
be affected by his/her acts or omissions at the workplace;

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❖ Comply with the safety and health requirements specified in the standards;
❖ Co-operate with the employer in meeting the statutory obligations of the employer under this
code;
❖ If any situation which is unsafe or unhealthy comes to his/her attention, as soon as practicable,
report such situation to the employer or to the health and safety representative and in case of
mine, agent or manager, safety officers or an official for the workplace, who shall report it to the
employer in the prescribed manner.
❖ Not wilfully interfere with or misuse or neglect any appliance, convenience or other thing
provided at workplace for the purpose of securing the health, safety, and welfare of workers;
❖ Not do, wilfully and without reasonable cause, anything, likely to endanger himself/herself or
others; and
❖ Perform such other duties as may be prescribed by the appropriate Government.

Rights of employee
❖ Every employee in an establishment shall have the right to obtain from the employer information
relating to employee's health and safety at work and represent to the employer directly or through
a member of the Safety Committee as constituted under this Code, if constituted by the
employer for such purpose, regarding inadequate provision for protection of the safety or health
in connection with the work activity in the workplace, and if not satisfied, to the Inspector-cum-
Facilitator.
❖ Where such employee in any workplace has reasonable apprehension that there is a likelihood
of imminent serious personal injury or death or imminent danger to health, the employee may
bring the same to the notice of his employer directly or through a member of the Safety
Committee and simultaneously bring the same to the notice of the Inspector-cum-Facilitator.
❖ The employer or any employee should take immediate remedial action if he/she is satisfied about
the existence of such imminent danger and send a report forthwith of the action taken to the
Inspector-cum-Facilitator in the manner prescribed.
❖ If the employer is not satisfied about the existence of any imminent danger as apprehended by
his employees, he/she shall, nevertheless, refer the matter forthwith to the Inspector-cum-
Facilitator whose decision on the question of the existence of such imminent danger shall be
final.
National & State Occupational Safety and Health Advisory Board
The Central Government will constitute the National Occupational Safety and Health Advisory Board
to discharge the functions conferred on it by or under this Code and to advise the Central
Government on the matters relating to:
❖ Standards, rules, and regulations to be declared or framed under this Code;
❖ Implementation of the provisions of this Code and the standards, rules and regulations relating
thereto;
❖ The issues of policy and programme relating to occupational safety and health referred to it, from
time to time, by the Central Government; and
❖ Any other matter in respect of this Code referred to it, from time to time, by the Central
Government.

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The State Government shall constitute a Board to be called the State Occupational Safety and Health
Advisory Board to advise the State Government on such matters arising out of the administration of
this Code as may be referred to it by the State Government.
Occupational safety and health standards
The Central Government shall declare, by notification, standards on occupational safety and health
for workplaces relating to factory, mine, dock work, beedi and cigar, building and other construction
work and other establishments.
Such standards shall relate to:
❖ Physical, chemical, biological and any other hazards to be dealt with for the working life of
employee to ensure to the extent feasible on the basis of the best available evidence or functional
capacity, that no employee will suffer material impairment of health or functional capacity even
if such employee has regular exposure
❖ To such hazards;
❖ The norms, appraising the hazards to employees and users to whom such hazards are exposed;
relating to relevant symptoms and appropriate energy treatment and proper conditions and
precautions of safe use or exposure; for monitoring and measuring exposure of employees to
hazards; for medical examination and other tests which shall be made available, by the employer
or at his cost, to the employees exposed to hazards; and
❖ For hazard evaluation procedures like safety audit, hazard and operability study, fault free
analysis, event free analysis and such other requirements;
❖ Medical examination including criteria for detection and reporting of occupational diseases to be
extended to the employees even after he ceases to be in employment, if he is suffering from an
occupational disease which arises out of or in the course of employment;
❖ Such aspects of occupational safety and health relating to workplaces which the central
government considers necessary on the report of the authority designated by such government
for such purpose;
❖ Such safety and health measures as may be required having regard to the specific conditions
prevailing at the workplaces relating to mine, factory, building and other construction work, beedi
and cigar, dock work or any other establishments notified; and
❖ Matters specified in the second schedule to this Code.

Safety Committee and Safety Officers

The appropriate Government may, require any establishment or class of establishments to
constitute a Safety Committee consisting of representatives of employers and workers engaged in
such establishment in prescribed manner.
In every establishment which is a:
❖ Factory wherein five hundred workers or more; or
❖ Factory carrying on hazardous process wherein two hundred fifty workers or more; or
❖ Building or other construction work wherein two hundred fifty workers or more; or
❖ Mine wherein one hundred workers or more, are ordinarily employed.
The employer shall also appoint such number of safety officers, who shall possess such
qualifications and perform such duties, as may be prescribed by appropriate Government.

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Responsibility of employer for maintaining health, safety and working conditions

The employer is responsible to maintain in the establishment such health, safety and working
conditions for the employees as may be prescribed by the Central Government. The Central
Government may prescribe for providing all or any of the following matters in the establishment or
class of establishments, namely:
❖ Cleanliness and hygiene;
❖ Ventilation, temperature, and humidity;
❖ Environment free from dust, noxious gas, fumes, and other impurities;
❖ Adequate standard of humidification, artificially increasing the humidity of the air, ventilation,
and cooling of the air in work rooms;
❖ Potable drinking water;
❖ Adequate standards to prevent overcrowding and to provide sufficient space to employees or
other persons, as the case may be, employed therein;
❖ Adequate lighting;
❖ Sufficient arrangement for latrine and urinal accommodation to male, female, and transgender
employee separately and maintaining hygiene therein;
❖ Effective arrangements for treatment of wastes and effluents; and
❖ Any other arrangement which the Central Government considers appropriate.

Welfare facilities in the establishment

The employer is responsible to provide and maintain in his establishment such welfare facilities for
the employees as may be prescribed by the Central Government, including,
❖ Adequate and suitable facilities for washing to male and female employees separately;
❖ Bathing places and locker rooms for male, female, and transgender employees separately;
❖ Place of keeping clothing not worn during working hours and for the drying of wet clothing;
❖ Sitting arrangements for all employees obliged to work in a standing position;
❖ Facilities of canteen in an establishment for employees thereof, wherein one hundred or more
workers including contract labourers are ordinarily employed;
❖ In case of mines, medical examination of the employees employed or to be employed in the
mines, before their employment and at specific intervals;
❖ Adequate first-aid boxes or cupboards with contents readily accessible during all working hours;
and
❖ Any other welfare measures which the central government considers, under the set of
circumstances, as required for decent standard of life of the employees.
The Central Government may also prescribe for the following matters, namely:
❖ Ambulance room in every factory, mine, building or other construction work wherein more than
five hundred workers are ordinarily employed;
❖ Medical facilities at the operating centres and halting stations, uniforms, raincoats, and other like
amenities for protection from rain or cold for motor transport workers;
❖ Adequate, suitable, and separate shelters or rest-rooms for male, female and transgender
employees and lunch-room in every factory and mine wherein more than fifty workers are

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ordinarily employed and in motor transport undertaking wherein employee is required to halt at
night;
❖ The appointment of welfare officer in every factory, mine, or plantation wherein two hundred and
fifty or more workers are ordinarily employed and the qualification, conditions of service and
duties of such welfare officer;
❖ For providing by the employer temporary living accommodation, free of charges and within the
work site or as near to it as may be possible, to all building workers employed by him and for
causing removal or demolition of such temporary living accommodation and for returning by the
employer the possession of any land obtained by him for such purpose from municipal board or
any other local authority;
❖ For payment by the principal employer the expenses incurred on providing the accommodation
to the contractor, where the building or other construction work is done through the contractor;
❖ Any other matter which may be prescribed.
The Central Government may make rules to provide for the facility of creche having suitable room or
rooms for the use of children under the age of six years of the employees at suitable location and
distance either separately or along with common facilities in establishments wherein more than fifty
workers are ordinarily employed, provided that an establishment can avail common crèche facility
of the Central Government, State Government, municipality or private entity or provided by non-
Governmental organisation or by any other organisation or group of establishments may pool their
resources for setting up of common crèche in the manner as they may agree for such purpose.
Hours of Work and Annual Leave with Wages
No worker shall be required or allowed to work, in any establishment or class of establishment for
more than:
❖ Eight hours in a day; and
❖ The period of work in each day shall be so fixed, as not to exceed such hours, with such intervals
and spread overs , as may be notified by the appropriate Government:
Subject to the above, in the case of mines,
❖ The persons employed below ground in a mine shall not be allowed to work for more than such
hours as may be notified by the Central Government in any day;
❖ No work shall be carried on below ground in any mine except by a system of shifts so arranged
that the period of work for each shift is not spread over more than the daily maximum hours as
mentioned above;
❖ No person employed in a mine shall be allowed to be present in any part of a mine below ground
except during the periods of work shown in respect of him in the register maintained.
The hours of work in case of motor transport worker include:
❖ The time spent in work done during the running time of the transport vehicle;
❖ The time spent in subsidiary work; and
❖ Period of mere attendance at terminals of less than fifteen minutes.
Explanation:
Running time in relation to a working day means the time from the moment a transport vehicle starts
functioning at the beginning of the working day until the moment when the transport vehicle ceases
to function at the end of the working day, excluding any time during which the running of the transport

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vehicle is interrupted for a period exceeding such duration as may be prescribed by the Central
Government during which period the persons who drive, or perform any other work in connection
with the transport vehicle are free to dispose of their time as they please or are engaged in subsidiary
work;
Subsidiary work means the work in connection with a transport vehicle, its passengers or its load
which is done outside the running time of the transport vehicle, including in particular:
❖ The work in connection with accounts, paying of cash, signing of registers, handover of service
sheets, the checking of tickets and other similar work;
❖ Taking over and garaging of the transport vehicles; travelling from the place where a person signs
on to the place where he takes over the transport vehicle and from the place where he leaves the
transport vehicle to the place where he signs off;
❖ Work in connection with the upkeep and repair of the transport vehicle; and
❖ The loading and unloading of the transport vehicle.
Period of mere attendance means the period during which a person remains at his post solely in
order to reply to possible calls or to resume action at the time fixed in the duty schedule.
The hours of work for working journalist shall, subject to a maximum of one hundred and forty-four
hours of work during any period of four consecutive weeks and a period of not less than twenty-four
consecutive hours of rest during any period of seven consecutive days, be such as may be prescribed
by the Central Government.
A sales promotion employee or the working journalist,in addition to such holidays, casual leave, or
other kinds of leave as may be prescribed by the Central Government, shall be granted, if requested
for:
❖ Earned leave on full wages for not less than one-eleventh of the period spent on duty;
❖ Leave on medical certificate on one-half of the wages for not less than one-eighteenth of the
period of service;
❖ May accumulate earned leave up to such maximum limit as may be prescribed by the central
government;
❖ Shall be entitled for the limit up to which the earned leave may be either encashed or availed of
at a time by him and the reasons for which such limit may be exceeded shall be such as may be
prescribed by the central Government;
❖ shall,
❖ When he voluntarily relinquishes his post or retires from service; or
❖ When his services are terminated for any reason whatsoever (not being termination as
punishment),
❖ Be entitled to cash compensation, subject to such conditions and restrictions as may be
prescribed by the central government (including conditions by way of specifying the maximum
period for which such cash compensation shall be payable), in respect of the earned leave
earned by him and not availed of;
❖ Who dies while in service, his heirs shall be entitled to cash compensation for the earned leave
earned by him and not availed of his heirs shall be paid the cash compensation in respect of any
period of earned leave for which he or his heirs, is or are entitled to cash compensation which
shall be an amount equal to the wages due to him for such period.

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❖ The working hours of an adolescent worker shall be regulated in accordance with the
provisions of the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986.
Weekly and compensatory holidays
❖ No worker shall be allowed to work in an establishment for more than six days in any one week:
Provided that in any motor transport undertaking, an employer may, in order to prevent any
dislocation of a motor transport service, require a worker to work on any day of weekly holiday
which is not a holiday so arranged that the worker does not work for more than ten days
consecutively without a holiday for a whole day intervening.
Extra wages for overtime
❖ There shall be paid wages at the rate of twice the rate of wages in respect of overtime work, where
a worker works in an establishment or class of establishment for more than such hours of work
in any day or in any week as may be prescribed by the appropriate Government and the period of
overtime work shall be calculated on a daily basis or weekly basis, whichever is more favourable
to such worker, provided that a worker shall be required to work overtime by the employer subject
to the consent of such worker for such work: provided further that the appropriate Government
may prescribe the total number of hours of overtime.
Night shifts
Where a worker in an establishment works on a shift which extends beyond midnight,
❖ For the purposes of section 26, a weekly holiday for a whole day shall mean in his case a period
of twenty-four consecutive hours beginning when his shift ends;
❖ The following day for him shall be deemed to be the period of twenty-four hours beginning when
such shift ends, and the hours he has worked after midnight shall be counted in the previous day.
Prohibition of overlapping shifts
❖ The work shall not be carried on in any establishment by means of a system of shifts so arranged
that more than one relay of workers is engaged in work of the same kind at the same time.
❖ The appropriate Government or subject to the approval of the appropriate Government, the Chief
Inspector-cum-Facilitator, may, by written order and for the reasons specified therein, exempt on
such conditions as may be deemed expedient, any establishment or class of establishments or
any department or section of an establishment or any category or description of workers therein
provided that the provisions of this sub-section shall not apply to mines.
Restriction on double employment in factory and mine
❖ No worker shall be required or allowed to work in a mine or factory if he has already been working
in any other such similar establishment within the preceding twelve hours, save in such
circumstances as may be prescribed by the appropriate Government.
Notice of periods of work
❖ There shall be displayed and correctly maintained in every establishment a notice of periods of
work, showing clearly for every day the periods during which workers may be required to work in
accordance with the provisions of this Code.
❖ The form of notice required, the manner of display of such notice and the manner in which such
notice shall be sent to the Inspector-cum-Facilitator shall be such as may be prescribed by the
appropriate Government.

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❖ Any proposed change in the system of work in any establishment which will necessitate a change
in the notice shall be intimated to the Inspector-cum-Facilitator before the change is made, and
except with the previous sanction of the Inspector-cum-Facilitator, no such change shall be
made until one week has elapsed since that last change.
Annual leave with wages
Every worker employed in an establishment shall be entitled for leave in a calendar year with wages
subject to the following conditions, namely:
❖ That he has worked one hundred and eighty days or more in such calendar year;
❖ That he shall be entitled for one-day leave for every twenty days of his work, in the case of
adolescent worker for fifteen days of his work, and in case of worker employed below ground
mine, at the rate of one day for every fifteen days of his work, in such calendar year;
❖ Any period of layoff, maternity leave or annual leave availed by such worker in such calendar year
shall be counted for calculating the period of one hundred and eighty days or more, but he shall
not earn leave for the period so counted;
❖ Any holidays falling between the leave availed by such worker (in a calendar year or prefixed or
suffixed holiday) shall be excluded from the period of leave so availed;
❖ In case of such worker whose service commences otherwise than on the first day of january shall
be entitled to leave with wages at the rate specified, if he has worked for one-fourth of the total
number of days in the remainder of the calendar year;
❖ In case such worker is discharged or dismissed from service or quits employment or is
superannuated or dies while in service, during the course of the calendar year, such worker or his
heir or nominee, shall be entitled to wages in lieu of the quantum of leave to which such worker
was entitled immediately before his discharge, dismissal, quitting of employment,
superannuation, or death, calculated as specified in preceding clauses, even:
❖ If such worker has not worked for the required period under this sub-section making such worker
eligible to avail such leave, and such payment shall be made;
❖ Where such worker is discharged or dismissed or quits employment before the expiry of the
second working day from the date of such discharge, dismissal or quitting; and
❖ Where such worker is superannuated or dies while in service, before the expiry of two months
from the date of such superannuation or death;
❖ If such worker does not in any one calendar year take the whole of the leave allowed to him under
this sub-section and the rules made thereunder, then, any leave not taken by him shall be added
to the leave to be allowed to him in the succeeding calendar year so that:
❖ The total number of days of leave that may be carried forward to a succeeding year shall not
exceed thirty days; and
❖ Such worker, who has applied for leave with wages but has not been given such leave in
accordance with this sub-section and the rules made thereunder shall be entitled to carry
forward the leave refused without any limit;
❖ Such worker shall be entitled on his demand for encashment of leave at the end of calendar year;
❖ Such worker shall be entitled, where his total number of leave exceeds thirty days to encash such
exceeded leave.
These provisions not operate to the prejudice of any right to which a person employed in a mine may
be entitled under any other law or under the terms of any award, agreement or contract of service:

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Provided that if such award, agreement or contract of service, provides for longer annual leave with
wages than that provided the quantum of leave, which the person employed shall be entitled to, shall
be in accordance with such award, agreement or contract of service but leave shall be regulated in
accordance with the aforesaid provisions with respect of matters not provided for in such award,
agreement, or contract of service: Provided further that where the Central Government is satisfied
that the leave rules applicable to persons employed in any mine provide benefits which in its opinion
are not less favourable than those stated above it may, by order in writing and subject to such
conditions as may be specified therein exempt the mine from all or any of the aforesaid provisions.
Maintenance of Registers, Records, and Returns
An employer of an establishment should:
❖ Maintain register in prescribed form, electronically or otherwise, containing such particulars of
workers as may be prescribed by the appropriate Government including,
❖ Work performed by them;
❖ Number of hours of work constituting normal working hours in a day;
❖ Day of rest allowed in every period of seven days;
❖ Wage paid and receipts given therefor;
❖ Leave, leave wages, overtime work, attendance, and dangerous occurrences; and
❖ Employment of adolescent;
❖ Display notices at the work place of the workers in such manner and form as may be prescribed
by the appropriate Government;
❖ Issue wage slips to the workers, in electronic forms or otherwise; and
❖ File such return electronically or otherwise to the Inspector-cum-Facilitator in such manner and
during such periods as may be prescribed by the appropriate Government.
INSPECTOR-CUM-FACILITATOR
❖ The appropriate government will appoint Inspector-cum-facilitators ("Inspector") who will be
empowered to enter workplaces, inspect establishments and their machinery, inquire into any
accidents or dangerous occurrences, require the production of any register or any other
document relating to the workplace, search or seize or take copies of any register, take samples
of any substances and issue show cause notices relating to safety, health, and welfare violations.
The Inspector shall be empowered to prosecute, conduct, and defend before any court any
complaint or other proceeding arising under the Code and the Rules thereunder.
SPECIAL PROVISIONS RELATING TO WOMEN EMPLOYEES
❖ The women workers shall be entitled to do all kinds of work in all establishments and work night
shifts from 7 PM to 6 AM with their consent, subject to conditions prescribed by the Government
relating to safety, holidays, and working hours. Previously, women were prohibited from working
at night under the Factories Act, 1948. The employer must arrange adequate safeguards for the
women employees in operations which are considered dangerous for health and safety.
SPECIAL PROVISIONS ON CONTRACT LABOUR AND INTER-STATE MIGRANT WORKERS
❖ The scope of the new definition of 'contract labour' excludes workers (besides part-time
employees) who are regularly employed by the contractor for any economic activity whereby

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such worker's employment is governed by mutually accepted employment standards and gets
periodical increment in pay and other welfare incentives.
❖ The provisions of the Code that pertain to contract labour would only apply to establishments
that hire 50 or more contract labourers. The Code provides that a contractor can employ contract
labourers through a common license, an application for which shall be made online through the
'Shram Suvidha Portal' of the Ministry of Labour and Employment. The contractor license shall
be granted based on the fulfilment of certain conditions by the contractor.
❖ If the conditions are not met, then the Central Government may issue only a 'work specific
license', for the concerned work order as may be specified in such license.
❖ The Code provides certain benefits for inter-state migrant workers. These include (i) the option to
avail the benefits of the public distribution system either in the native state or the state of
employment, (ii) the availability of benefits available under the building and other construction
cess fund in the state of employment, (iii) insurance and provident fund benefits available to
other workers in the same establishment, and (iv) toll-free helpline number.
SPECIAL PROVISIONS FOR FACTORIES
❖ The appropriate government may declare any place carrying on a manufacturing process as a
'factory', irrespective of the minimum number of workers in a factory. The threshold under the
new definition has been increased to 20 workers from 10 workers for premises where the work
process uses power and 40 workers from 20 where the work process does not use power. The
appropriate government may require provisions of added facilities like ambulance rooms,
welfare officers, and temporary housing.
❖ For the factories involved in hazardous processes, the maximum permissible limits of exposure
to chemical and toxic substances in manufacturing processes will be prescribed by the State
Government. Further, it may specify medical examinations for workers, among other facilities.
Emergency standards may be set for enforcement of suitable standards in respect of such
hazardous processes. If it appears that workers are in danger, the Inspector may limit the number
of employees working or prohibit work in an establishment.
SPECIAL PROVISIONS FOR AUDIO-VISUAL WORKERS
❖ The concept of audio-visual production has been newly introduced in the Code. The definition
includes: (i) animation, cartoon depiction, audio-visual advertisement; (ii) digital production,
and; (iii) features films, non-feature films, television, web-based serials, talk shows, reality
shows, and sports shows. Audio-visual workers include actors, musicians, singers, dancers,
news readers, anchors, dubbing artists and stunt persons.
SPECIAL PROVISIONS FOR OTHER TYPES OF WORKERS
❖ The definition of 'worker' has been introduced in the Code. While it is quite similar to the
definition of an 'employee' under the OSHWC Code, it specifically excludes (i) persons employed
in a supervisory capacity whose monthly salary is INR 18,000 or more; or (ii) persons who are
employed mainly in a managerial and administrative capacity. Below are some provisions on
other types of workers governed under the Code.
Mines
❖ Every mine shall be under a sole manager who shall have such qualifications as may be
prescribed by the Central Government and the owner or agent of every mine shall appoint a
person having such qualifications to be the manager: Provided that the owner or agent may
appoint himself as manager if he possesses the prescribed qualifications.

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❖ Subject to any instructions given to him by or on behalf of the owner or agent of the mine, the
manager shall be responsible for the overall management, control, supervision, and direction of
the mine and all such instructions when given by the owner or agent shall be confirmed in writing
forthwith.
❖ Except in case of an emergency, the owner or agent of a mine or anyone on his behalf shall not
give, otherwise than through the manager, instructions affecting the fulfilment of his statutory
duties, to a person, employed in a mine, who is responsible to the manager.
The provisions of this Code, except those contained in sections 35, 38, 40, 41 and 44, shall not
apply to:
❖ Any mine or part thereof in which excavation is being made for prospecting purposes only and
not for the purpose of obtaining minerals for use or sale subject to such conditions relating to
number of employees, depth of excavation and other matters as may be prescribed by the
Central Government;
❖ Any mine engaged in the extraction of kankar, murrum, laterite, boulder, gravel, shingle, ordinary
sand (excluding mouldings and glass sand and other mineral sands), ordinary clay (excluding
kaolin, China clay, white clay, or fire clay), building stone, slate, road metal, earth, fullers earth
(marl, chalk) and lime stone subject to such conditions relating to workings, open cast workings
and explosives as may be prescribed by the Central Government.
❖ In case of an emergency involving serious risk to the safety of the mine or of persons employed
therein, or in case of an accident, whether actual or apprehended, or in case of any act of God or
in case of any urgent work to be done to machinery, plant or equipment of the mine as a result of
breakdown of such machinery plant or equipment, the manager may, subject to the provisions
of the Code as may be necessary to protect the safety of the mine or of the persons employed
therein: Provided that in case of any urgent work to be done to machinery, plant or equipment
under this section, the manager may take the action permitted by this section, although the
production of mineral would thereby be incidentally affected, but any action so taken shall not
exceed the limits necessary for the purpose of avoiding serious interference with the ordinary
working of the mine.
❖ No person below eighteen years of age shall be allowed to work in any mine or part thereof. The
apprentices and other trainees, not below sixteen years of age, may be allowed to work, under
proper supervision, in a mine or part thereof by the manager: Provided that in the case of trainees,
other than apprentices, prior approval of the Chief Inspector-cum-Facilitator or an Inspector-
cum-Facilitator shall be obtained before they are allowed to work.
❖ The Central Government may prescribe the provisions for medical examination of apprentice,
other trainee, and employee in the mine to ensure their fitness to work and to prevent the persons
below sixteen years of age to work as apprentice or trainee and those who are not adults to work
as such employee.
Beedi and Cigar Workers
No employer shall use or allow to use any place or premises as an industrial premises unless he
holds a valid licence issued under this Code for the purposes of these provisions, and no such
premises shall be used except in accordance with the terms and conditions of such licence.
❖ Subject to the provisions of section 119, any person who intends to use or allows to use any place
or premises shall make an application to the authority in prescribed manner, for a licence to use,
or allow to use, such premises as an industrial premises. Such application shall specify the
maximum number of employees proposed to be employed at any time of the day in the place or

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premises and shall be accompanied by a plan of the place or premises prepared. The authority,
in deciding whether to grant or refuse to grant a licence, have regard to:
❖ The suitability of the place or premises which is proposed to be used for the manufacture of beedi
or cigar or both;
❖ Previous experience of the applicant or he has employed experienced person or has entered into
agreement with the experienced person for employment for the period of licence;
❖ The financial resources of the applicant including his financial capacity to meet the demands
arising out of the provisions of the laws for the time being in force relating to welfare of labour;
❖ Whether the application is made bona fide on behalf of the applicant himself or in benami of any
other person;
❖ Welfare of the labour in the locality, the interest of the public generally and such other matters as
may be prescribed by the State Government.
❖ A licence granted shall be valid for five years and may be renewed thereafter. An application for
the renewal of a licence for the purposes of these provisions shall be made at least thirty days
before the expiry of the period thereof, on payment of such fees as may be prescribed by the State
Government, and where such an application has been made, the licence shall be deemed to
continue, notwithstanding the expiry of the period thereof, until the renewal of the licence, or, as
the case may be, the rejection of the application for the renewal thereof: Provided that the
authority shall not grant or renew a licence unless it is satisfied that the provisions of this Part
and the rules made thereunder have been complied with.
❖ Nothing contained in this Part shall apply to the owner or occupier of a private dwelling house,
not being an employee of an employer to whom this Part applies, who carries on any
manufacturing process in such private dwelling house with the assistance of the members of his
family living with him in such dwelling house and dependent on him.
Explanation:
❖ Family does not include child, as defined in the Child and Adolescent (Prohibition and
Regulation) Act, 1986, for this section; Private dwelling house means a house in which persons
engaged in the manufacture of beedi or cigar or both reside.
Building or Other Constructions Workers
❖ No person, about whom the employer knows or has reasons to believe that he is a deaf or he has
a defective vision, or he has a tendency to giddiness, shall be required or allowed to work in any
such operation of building or other construction work which is likely to involve a risk of any
accident either to the building worker himself or to any other person.
Factories
The appropriate Government may make rules in respect of factory or class or description of
factories for:
❖ The submission of plans including specifications, nature, and certification thereof;
❖ The previous permission for the site on which the factory is to be situated and for the construction
or extension thereof; and
❖ Subject to the provision of sub-section 119, licensing and renewal thereof including fees to be
payable for such, licensing, and renewal, if required, as the case may be.
❖ If on an application for permission accompanied by the plans and specifications required by the
rules, sent to the State Government or Chief Inspector-cum-Facilitator in the electronic mode,

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no order is communicated to the applicant within such period not exceeding thirty days, the
permission applied for in the said application shall be deemed to have been granted.
❖ Where a State Government or a Chief Inspector-cum-Facilitator refuses to grant permission to
the site, construction or extension of a factory and licensing of a factory, the applicant may within
thirty days of the date of such refusal appeal to the Central Government if the decision appealed
from was of the State Government and to the State Government in any other case.
❖ Explanation: A factory shall not be deemed to be extended within the meaning of this section by
reason only of the replacement of any plant or machinery or within such limits as may be
prescribed, of the addition of any plant or machinery if such replacement or addition does not
reduce the minimum clear space required for safe working around the plant or machinery or
adversely affect the environmental conditions from the evolution or emission of steam, heat or
dust or fumes injurious to health.
❖ Where any premises or separate buildings are leased to different occupiers for use as separate
factories, the owner of the premises and occupiers of the factories utilising such common
facilities which include safety and fire prevention and protection, access, hygiene, occupational
health, ventilation, temperature, emergency preparedness and response, canteens, shelter, rest
rooms and crèches shall jointly and severally be responsible for provision and maintenance of
such common facilities and services as may be prescribed by the appropriate Government.
❖ The appropriate Government may by rules make the provisions relating to any factory or class or
description of factories in which manufacturing process or operation is carried on which exposes
any of the persons employed in it to a serious risk of bodily injury, poisoning or disease, for:
❖ Specifying the manufacturing process or operation and declaring it to be dangerous;
❖ Prohibiting or restricting the employment of pregnant women in the manufacturing process or
operation;
❖ The periodical medical examination before, or at any time during the employment to ascertain
the fitness of a worker or employee for such employment on the cost of the occupier; and
❖ Welfare amenities, sanitary facilities, protective equipment and clothing, and any other
requirement necessary for dangerous operations.
❖ The occupier of every factory involving a hazardous process shall disclose in the manner
prescribed by the State Government all information regarding dangers, including health hazards
and the measures to overcome such hazards arising from the exposure to or handling of the
materials or substances in the manufacture, transportation, storage and other processes, to the
workers employed in the factory, the Chief Inspector-cum-Facilitator or Inspector-cum-
Facilitator, the local authority within whose jurisdiction the factory is situate and the general
public in the vicinity.
❖ The occupier shall, at the time of registering the factory involving a hazardous process, lay down
a detailed policy with respect to the health and safety of the workers employed therein and
intimate such policy to the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator and the
local authority and, thereafter, at such intervals as may be prescribed by the State Government,
inform the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator and the local authority
of any change made in the said policy.
❖ The information furnished shall include accurate information as to the quantity, specifications
and other characteristics of wastes and the manner of their disposal.

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❖ Every occupier shall, with the approval of the Chief Inspector-cum-Facilitator, draw up an on-site
emergency plan and detailed disaster control measures for his factory and make known to the
workers employed therein and to the general public living in the vicinity of the factory the safety
measures required to be taken in the event of an accident taking place.
❖ Every occupier of a factory shall, if such factory proposes to engage in a hazardous process at
any time after the commencement of this Code, within a period of thirty days before the
commencement of such process, inform the Chief Inspector-cum-Facilitator about the nature
and details of the process in such form and in such manner as may be prescribed by the State
Government. Where any occupier of a factory contravenes this provision the licence issued to
such factory shall, notwithstanding any penalty to which the occupier of factory shall be
subjected to under the provisions of this Code, be liable for cancellation.
❖ The occupier of a factory involving a hazardous process shall, with the previous approval of the
Chief Inspector-cum-Facilitator, lay down measures for the handling, usage, transportation, and
storage of hazardous substances inside the factory premises and the disposal of such
substances outside the factory premises and publicise them in the manner prescribed by the
State Government among the workers and the general public living in the vicinity.
Every occupier of a factory involving any hazardous process should:
❖ Maintain accurate and up-to-date health records or, as the case may be, medical records, of the
workers in the factory who are exposed to any chemical, toxic or any other harmful substances
which are manufactured, stored, handled, or transported and such records shall be accessible
to the workers subject to such conditions as may be prescribed by the State Government;
❖ Appoint persons who possess prescribed qualifications and experience in handling hazardous
substances and are competent to supervise such handling within the factory and to provide at
the working place all the necessary facilities for protecting the workers in the manner prescribed
by the State Government: Provided that where any question arises as to the qualifications and
experience of a person so appointed, the decision of the Chief Inspector-cum-Facilitator shall be
final;
❖ Provide for medical examination of every worker:-
❖ Before such worker is assigned to a job involving the handling of, or working with, a hazardous
substance; and
❖ While continuing in such job, and after he has ceased to work in such job, at intervals not
exceeding twelve months, in such manner as may be prescribed by the State Government.
Plantation
The State Government may prescribe requiring every employer to make provisions in his plantation
for:
❖ Necessary housing accommodation including drinking water, kitchen and toilet to every worker
employed in the plantation (including his family);
❖ Crèches facilities where in the plantation fifty or more workers (including workers employed by
any contractor) are employed or were employed on any day of the preceding twelve months:
Provided that,
❖ An establishment may avail common crèche facility of the Central Government, State
Government, municipality, or private entity or provided by non-Governmental organisation or by
any other organisation; or

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❖ A group of establishments may agree to pool their resources for setting up of common crèche;
❖ Educational facilities for the children of the workers employed in the plantation where the
children between the ages of six to twelve of the workers exceed twenty-five in number;
❖ Health facilities to every worker employed in the plantation (including his family) or provide
coverage under the Employees State Insurance Act, 1948; and
❖ Recreational facilities for the workers employed in the plantation.
❖ An employer of a plantation shall be responsible to provide and maintain welfare facilities for
which the workers in the plantation are entitled under this Code either from his own resources or
through the schemes of the Central Government or State Government, Municipality or Panchayat
for the locality in which the plantation is situated.
❖ In every plantation, arrangement shall be made by the employer to provide for the safety of a
worker in connection with the use, handling, storage and transport of insecticides, pesticides
and chemicals and toxic substances.
❖ The State Government may prescribe for special safeguards for employment of women or
adolescents in using or handling hazardous chemicals.
❖ The employer of a plantation shall appoint persons possessing the prescribed qualifications to
supervise the use, handling, storage and transportation of insecticides, chemicals, and toxic
substances in his plantation.
❖ Every employer of a plantation shall ensure that every worker in plantation employed for
handling, mixing, blending, and applying insecticides, chemicals, and toxic substances, is
trained about the hazards involved in different operations in which he is engaged, the various
safety measures and safe work practices to be adopted in emergencies arising from spillage of
such insecticides, chemicals and toxic substances and such other matters as may be prescribed
by the State Government.
❖ Every worker in a plantation who is exposed to insecticides, pesticides, chemicals, and toxic
substances shall be medically examined periodically, in such manner as may be prescribed by
the State Government.
❖ Every employer of a plantation shall maintain health record of every worker in plantation who is
exposed to insecticides, pesticides, chemicals, and toxic substances which are used, handled,
stored, or transported in a plantation, and every such worker shall have access to such record.
❖ Every employer of a plantation shall provide washing, bathing, and clock room facilities; and
protective clothing and equipment, to every worker engaged in the handling insecticides,
pesticides, chemicals, and toxic substances in such manner as may be prescribed by the State
Government.
❖ Every employer of a plantation shall display in the plantation, a list of permissible concentrations
of insecticides, pesticides, chemicals, and toxic substances in the breathing zone of the workers
engaged in the handling and application of insecticides, pesticides, chemicals, and toxic
substances in the plantation.
❖ Every employer of a plantation shall exhibit such precautionary notices in the plantation as may
be prescribed by the State Government indicating the hazards of insecticides, pesticides,
chemicals, and toxic substances.

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AMENDMENTS TO THE THRESHOLDS

The thresholds have been amended under the Code, changing the applicability of certain provisions.

Provision No. of employees required for

applicability of provision

Previous New

Factory-related provisions in case of 10 20

factories utilising power

Factory related provisions in case of 20 40

factories not utilising power

Contract labour provisions 20 50

Provision for creche facility 30 50

Provision for canteen 250 100

Appointment of welfare officer (factory, 500 250

mine, or plantation)

PENALTIES
If there is any contravention of the provisions of the Code or Rules, or bye-laws or any of standards,
made thereunder by the establishment, the employer or the principal employer of the establishment,
shall be liable to a penalty which shall not be less than INR 2,00,000 but which may extend up to INR
3,00,000, and if the contravention continues after the conviction, then, with a further penalty which
may extend to INR 2,000 for each day till such contravention continues.
If a person fails to comply with or contravenes any duties under this Code or the regulations, rules,
bye-laws or orders made thereunder and such non-compliance or contravention has resulted in an
accident or dangerous occurrences causing:
❖ Death, he shall be punishable with imprisonment for a term which may extend to two years, or
with a fine which shall not be less than five lakh rupees, or with both; or
❖ Serious bodily injury to any person within the establishment,
❖ He shall be punishable with imprisonment for a term which may extend to one year, or with a fine
which shall not be less than two lakh rupees but not exceeding four lakh rupees, or with both:
Provided that while imposing the fine under this section, the court may direct that a portion of
the fine, which shall not be less than fifty per cent. thereof, shall be given as compensation to the
victim or to the legal heirs of the victim, in the case of his death. Where a person having been
convicted as mentioned here, if is again convicted, shall be punishable with double the
punishment provided under that sub-section for first conviction.
❖ Whoever continues to work in contravention of any general or special order issued under the
provisions of section 38, shall be punishable with imprisonment for a term which may extend to
two years and shall also be liable to fine which may extend to five lakh rupees: Provided that the

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court shall not impose a fine under this section which shall be less than two lakh rupees without
recording in the judgment the reasons for imposing such fine.
❖ Whoever in compliance of the provisions of section 67, fails to appoint a manager shall be
punishable with imprisonment for a term which may extend to three months, or with fine which
may extend to one lakh rupees, or with both.
❖ Subject to the provisions of section 13, except clause (d) thereof, if any employee employed in a
workplace contravenes any provision of this Code or any rules or orders made thereunder,
imposing any duty or liability on employee, he shall be punishable with penalty which may extend
to ten thousand rupees. Where an employee is convicted of an offence punishable as mentioned
here the employer of the establishment shall not be deemed to be guilty of an offence in respect
of that contravention, unless it is proved that he failed to take all reasonable measures for its
prevention.
Social Security Fund
❖ There shall be established by the appropriate Government a social security fund for the welfare
of the unorganised workers to which there shall be credited the amount received from
composition of the offence and the amount of the penalty. The fund may also be funded by such
other sources as may be prescribed by the appropriate Government. The fund shall be
administered and expended for welfare of the unorganised workers in such manner as may be
prescribed by the appropriate Government including the transfer of the amount in the fund to any
fund established under any other law for the time being in force for the welfare of the unorganised
workers.
❖ Explanation: Unorganised worker shall have the same meaning as is assigned to it under clause
(m) of section 2 of the Unorganised Workers Social Security Act, 2008
Key Definitions
Core activity of an establishment means any activity for which the establishment is set up and
includes any activity which is essential or necessary to such activity: Provided that the following shall
not be considered as essential or necessary activity, if the establishment is not set up for such
activity, namely:
❖ Sanitation works, including sweeping, cleaning, dusting and collection and disposal of all kinds
of waste;
❖ Watch and ward services including security services;
❖ Canteen and catering services;
❖ Loading and unloading operations;
❖ Running of hospitals, educational and training institutions, guest houses, clubs and the like
where they are in the nature of support services of an establishment;
❖ Courier services which are in nature of support services of an establishment;
❖ Civil and other constructional works, including maintenance;
❖ Gardening and maintenance of lawns and other like activities;
❖ Housekeeping and laundry services, and other like activities, where these are in nature of support
services of an establishment;
❖ Transport services including ambulance services;
❖ Any activity of intermittent nature even if that constitutes a core activity of an establishment;

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Employee means,
❖ In respect of an establishment, a person (other than an apprentice engaged under the
Apprentices Act, 1961) employed on wages by an establishment to do any skilled, semi-skilled,
unskilled, manual, operational, supervisory, managerial, administrative, technical, clerical or
any other work, whether the terms of employment be express or implied; and
❖ A person declared to be an employee by the appropriate Government, but does not include any
member of the Armed Forces of the Union:
Provided that notwithstanding anything contained in this clause, in case of a mine a person is
said to be employed in a mine who works as the manager or who works under appointment by
the owner, agent or manager of the mine or with the knowledge of the manager, whether for
wages or not:
❖ In any mining operation (including the concomitant operations of handling and transport of
minerals up to the point of dispatch and of gathering sand and transport thereof to the mine);
❖ In operations or services relating to the development of the mine including construction of plant
therein but excluding construction of buildings, roads, wells and any building work not directly
connected with any existing or future mining operations;
❖ In operating, servicing, maintaining or repairing any part of any machinery used in or about the
mine;
❖ In operations, within the premises of the mine, of loading for dispatch of minerals;
❖ In any office of mine;
❖ In any welfare, health, sanitary or conservancy services required to be provided under this code
relating to mine, or watch and ward, within the premises of the mine excluding residential area;
or
❖ In any kind of work, whatsoever, which is preparatory or incidental to, or connected with, mining
operations;
Employer means a person who employs, whether directly or through any person, or on his behalf, or
on behalf of any person, one or more employees in his establishment and where the establishment
is carried on by any Department of the Central Government or the State Government, the authority
specified, by the head of such Department, in this behalf or where no authority, is so specified, the
head of the Department and in relation to an establishment carried on by a local authority, the Chief
Executive of that authority, and includesL
❖ In relation to an establishment which is a factory, the occupier of the factory;
❖ In relation to mine, the owner of the mine, agent or manager referred to in section 67;
❖ In relation to any other establishment, the person who, or the authority which has ultimate
control over the affairs of the establishment and where said affairs are entrusted to a manager or
managing director, such manager or managing director;
❖ Contractor; and
❖ Legal representative of a deceased employer;
Establishment means:
(i) a place where any industry, trade, business, manufacturing or occupation is carried on in which
ten or more workers are employed; or

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(ii) motor transport undertaking, newspaper establishment, audio-video production, building and
other construction work or plantation, in which ten or more workers are employed; or
(iii) factory, for the purpose of Chapter II, in which ten or more workers are employed, notwithstanding
the threshold of workers provided in clause (w); or
(iv) a mine or port or vicinity of port where dock work is carried out:
Provided that in sub-clauses (i) and (ii), the threshold of worker specified therein shall not be
applicable in case of such establishment or class of establishments, in which such hazardous or life
threatening activity is being carried on, as may be notified by the Central Government:
Provided further that notwithstanding any threshold provided in the definition of factory in clause (w),
for the purposes of Chapter II, the establishment specified in sub-clause (i) or sub-clause (ii) or sub-
clause (iii) shall be deemed to be the establishment within the meaning of this clause though the
number of employees employed are ten or more;
Factory means any premises including the precincts thereof:
❖ Whereon twenty or more workers are working, or were working on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on with the aid of
power, or is ordinarily so carried on; or
❖ Whereon forty or more workers are working, or were working on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on without the aid of
power, or is ordinarily so carried on, but does not include a mobile unit belonging to the armed
forces of the Union, railways running shed or a hotel, restaurant or eating place:
❖ Provided that where under any law for the time being in force in a State immediately before the
commencement of this Code, the number of workers specified is more or less than the number
specified above, then, the number specified under the law of the State shall prevail in that State
till it is amended by the competent Legislature.
❖ Explanation I For computing the number of workers for the purposes of this clause all the workers
(in different groups and relays) in a day shall be taken into account.
❖ Explanation II For the purposes of this clause, the mere fact that an Electronic Data Processing
Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed as
factory if no manufacturing process is being carried on in such premises or part thereof;
Family, when used in relation to a worker, means:
❖ Spouse;
❖ Children including adopted children of the worker who are dependent upon him and have not
completed the age of eighteen years; and
❖ Parents, grand-parents, widowed daughter, and widowed sister dependent upon such worker.
Explanation - For the purposes of this clause, such dependents shall not be included who are, for
the time being, getting such income from such sources, as may be prescribed by the appropriate
Government;
❖ Hazardous means involving danger or potential danger;
❖ Hazardous process means any process or activity in relation to an industry or plantation
specified in the First Schedule where, unless special care is taken, raw materials used therein or
the intermediate or finished products, bye-products, hazardous substances, wastes or effluents
thereof or spraying of any pesticides, insecticides or chemicals used therein, as the case may

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be, would—(i) cause material impairment to the health of the persons engaged in or connected
therewith, or (ii) result in the pollution of the general environment;
❖ Hazardous substance means any substance, or such quantity of the substance as may be
prescribed by the appropriate Government or preparation of which by reason of its chemical or
physio-chemical properties or handling is liable to cause physical or health hazards to human
being or may cause harm to other living creatures, plants, micro-organisms, property, or the
environment;
❖ Industrial premises means any place or premises (not being a private dwelling house), including
the precincts thereof, in which or in any part of which any industry, trade, business, occupation
or manufacturing is being ordinarily carried on with or without the aid of power and includes a
godown attached thereto;
❖ Industry means any systematic activity carried on by co-operation between an employer and
worker (whether such worker is employed by such employer directly or by or through any agency,
including a contractor) for the production, supply or distribution of goods or services with a view
to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or
religious in nature), whether or not,
❖ Any capital has been invested for the purpose of carrying on such activity; or
❖ Such activity is carried on with a motive to make any gain or profit,
But does not include:
❖ Institutions owned or managed by organisations wholly or substantially engaged in any
charitable, social or philanthropic services; or
❖ Any activity of the appropriate government relatable to the sovereign functions of the appropriate
government including all the activities carried on by the departments of the central government
dealing with defence research, atomic energy and space; or
❖ Any domestic service; or
❖ Any other activity as may be notified by the Central Government;
Inter-State migrant worker means a person who is employed in an establishment and who:
❖ Has been recruited directly by the employer or indirectly through contractor in one State for
employment in such establishment situated in another State; or
❖ Has come on his own from one State and obtained employment in an establishment of another
State (hereinafter called destination State) or has subsequently changed the establishment
within the destination State, under an agreement or other arrangement for such employment and
draws wages not exceeding the amount of rupees eighteen thousand per month or such higher
amount as may be notified by the Central Government from time to time;
Manufacturing process means any process for:
❖ 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; or
❖ Pumping oil, water, sewage or any other substance; or
❖ Generating, transforming or transmitting power; or
❖ Composing, printing, printing by letter press, lithography, offset, photogravure screen printing,
three dimensional or four dimensional printing, prototyping, flexography or other types of printing
process or book binding; or

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❖ Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or

❖ Preserving or storing any article in cold storage; or
❖ Such other processes as the Central Government may notify;
❖ Motor transport worker means a person who is employed in a motor transport undertaking
directly or through an agency, whether for wages or not, to work in a professional capacity on a
transport vehicle or to attend the duties in connection with the arrival, departure, loading or
unloading of such transport vehicle and includes a driver, conductor, cleaner, station staff, line
checking staff, booking clerk, cash clerk, depot clerk, time-keeper, watchman or attendant,
But does not include any such person:
❖ Who is employed in a factory;
❖ To whom the provisions of any other law for the time being in force regulating the conditions of
service of persons employed in shops or commercial establishments apply;
Occupier of a factory means the person who has ultimate control over the affairs of the factory:
Provided that:
❖ In the case of a firm or other association of individuals, any one of the individual partners or
members thereof;
❖ In the case of a company, any one of the directors, except any independent director within the
meaning of section 149 (6) of the companies act, 2013;
❖ In the case of a factory owned or controlled by the central government or any state government,
or any local authority, the person or persons appointed to manage the affairs of the factory by the
central government, the state government or the local authority or such other authority as may
be prescribed by the Central Government, shall be deemed to be the occupier:
❖ Provided further that in the case of a ship which is being repaired, or on which maintenance work
is being carried out, in a dry dock which is available for hire, the owner of the dock shall be
deemed to be the occupier for all purposes except the matters as may be prescribed by the
Central Government which are directly related to the condition of ship for which the owner of ship
shall be deemed to be the occupier;
❖ Ordinarily employed with reference to any establishment or part thereof, means the average
number of persons employed per day in the establishment or part thereof during the preceding
calendar year obtained by dividing the number of man days worked by the number of working
days excluding rest days and other non-working days;
❖ Owner, in relation to a mine, means any person who is the immediate proprietor or lessee or
occupier of the mine or of any part thereof and in case of a mine the business whereof is being
carried on by a liquidator or receiver, such liquidator or receiver; but does not include a person
who merely receives a royalty, rent or fine from the mine, or is merely the proprietor of the mine,
subject to any lease grant or licence for the working thereof, or is merely the owner of the soil and
not interested in the minerals of the mine; but any contractor or sub-lessee for the working of a
mine or any part thereof shall be subject to this Code in like manner as if he were an owner but
not so as to exempt the former from any liability;
Principal employer, where the contract labour is employed or engaged, means:
❖ In relation to any office or Department of the Government or a local authority, the head of that
office or Department or such other officer as the Government or the local authority, may specify
in this behalf;

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❖ In a factory, the owner or occupier of the factory and where a person has been named as the
manager of the factory, the person so named;
❖ In a mine, the owner or agent of the mine;
❖ In relation to any other establishment, any person responsible for the supervision and control of
the establishment;
❖ Relay means a set of two or more persons carrying out the same kind of work during different
periods of the day and each such period is called a shift;
❖ Serious bodily injury means any injury which involves, or in all probability will involve, the
permanent loss of any part or section of a body or the use of any part or section of a body, or the
permanent loss of or injury to the sight or hearing or any permanent physical incapacity or the
fracture of any bone or one or more joints or bones of any phalanges of hand or foot;
❖ Wages 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, and includes (i) basic pay; (ii) dearness allowance; and (iii)
retaining allowance, if any, but does not include (a) any bonus payable under any law for the time
being in force, which does not form part of the remuneration payable under the terms of
employment; (b) 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 special order of the appropriate Government; (c) any contribution paid by the employer
to any pension or provident fund, and the interest which may have accrued thereon; (d) any
conveyance allowance or the value of any travelling concession; (e) any sum paid to the
employed person to defray special expenses entailed on him by the nature of his employment;
(f) house rent allowance; (g) remuneration payable under any award or settlement between the
parties or order of a court or Tribunal; (h) any overtime allowance; (i) any commission payable to
the employee; (j) any gratuity payable on the termination of employment; (k) any retrenchment
compensation or other retirement benefit payable to the employee or any ex gratia payment
made to him on the termination of employment:
❖ Provided that, for calculating the wages under this clause, if payments made by the employer to
the employee under sub-clauses (a) to (i) exceeds one-half, or such other per cent. as may be
notified by the Central Government, of all remuneration calculated under this clause, the amount
which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and
shall be accordingly added in wages under this clause:
❖ Provided further that for the purpose of equal wages to all genders and for the purpose of
payment of wages, the emoluments specified in sub-clauses (d), (f), (g) and (h) shall be taken for
computation of wages.
❖ Explanation Where an employee is given in lieu of the whole or part of the wages payable to him,
any remuneration in kind by his employer, the value of such remuneration in kind which does not
exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the
wages of such employee; worker means any person employed in any establishment to do any
manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward,
whether the terms of employment be express or implied, and includes working journalists and
sales promotion employees, but does not include any such person— (i) who is subject to the Air
Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or (ii) who is employed in the police
service or as an officer or other employee of a prison; or (iii) who is employed mainly in a

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managerial or administrative capacity; or (iv) who is employed in a supervisory capacity drawing

wage exceeding eighteen thousand rupees per month or an amount as may be notified by the
Central Government from time to time.
Key Changes
❖ Factory governed by the central government will come under the central government as the
“appropriate government”. This include establishment of contractors. State Government may
step in In other cases the factory is situated.
❖ This code will also cover audio visual productions, including feature films, non-feature films,
television, web-base serials, talk shows, reality shows etc.
❖ Introduction of definition for “Audio-Visual Worker”, which will include singer, news reader,
dancer, etc. It is prohibited to employ of audio-visual worker without agreement.
❖ Introduction of “Liability of “Principal Employer” which include, among others:
✓ to provide welfare facilities such as canteens, rest rooms, drinking water where the contract
labour is employed,
✓ shall be liable to make payment of wages to the contract labour deployed by him or contract
labour hired through a contractor
The manager has been excluded from the definition.
Key Changes
❖ Central or state government rules shall apply to determine the work hours for different classes of
establishment and employees.
❖ Employees shall be paid twice the rate of daily wage for overtime hours.
❖ No employee shall work more than six days a week, with the exception of motor transport
workers.
Key Changes Definitions
❖ The definition of the “Factory” has been revised to incorporate threshold limit of employees is of
20 in case of use of power and 40 in case without power. The law specifically excludes hotels,
restaurant, eating place, Electronic Data Processing Unit, etc from this definition.
❖ Definition of "hazardous substance" provides any substance produced by industrial activity that
has potential to cause physical or health hazards to human being and the environment.
❖ A new definition “Industrial premises” to include any place or premises (not being a private
dwelling house) where any part of industrial, trade, business, occupation or manufacturing
activity is carried out
❖ Definition of “Inter State Migrant worker” has been changed to include workers earning not
more than INR 18,000.
❖ Definition of "machinery" has been introduced to include any article or combination of articles
assembled, used or intended to be used for converting any form of energy to perform work.
❖ Definition of “newspaper establishment” has been significantly changed to cover all types of
establishment run by individual or body of persons, whether incorporated or not.
❖ Definition of the “Occupier” has been revised to provide a comprehensive and clear definition.
❖ Definition of “contract labour” has been revised, it will include inter-State migrant worker but
excludes part time employee and regularly employee.

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Key Highlights
❖ The Code simplifies the registration process prescribing that the establishment having ten or
more employees are required to be registered with the registering officer appointed by the
appropriate Government thereby minimizing the statutory compliances.
❖ Defines factory with increase in the threshold on number of workers from ten and twenty workers
to twenty and forty workers respectively and fixed the maximum limit of daily working hours for
the factory workers as eight hours per day.
❖ Mandates issuance of appointment letters to the employees and workers.
❖ Defines core activity of establishment as any activity which is the purpose of constituting an
establishment and activities that are incidentally essential and thereby prohibits employment of
contract labour in such core activities, however, exempts a few situations such as, (i) the normal
functioning of the establishment is such that the activity is ordinarily done through contractor, (ii)
the activities are such that they do not require full time workers for the major portion of the day,
or (iii) there is a sudden increase in the volume work in the core activity which needs to be
completed in a specified time.
❖ Expands the list of benefits to the inter-state migrant workman such as the benefits of the
insurance and provident fund benefits either in the native state or the state of employment,
portability of benefits of the inter-state migrant worker working for building or other construction
work out of the building and other construction cess fund in the destination State where such
inter-state migrant worker is employed.
❖ Mandates free health check-ups for who attained the age of forty five years for prescribed
industries such as factories, mines, plantations, workers employed in hazardous process.
❖ Introduces the concept of limiting the carryover of annual leaves (paid leaves) to a maximum of
30 days but provision made for encashment of leave in excess of 30 days. Therefore, the concept
of leave lapse will cease to exist by virtue of encashment.
❖ Introduced the penalty provisions more strictly such as contravention of any provision of the
Code shall attract a fine up to Rs. 2 Lakhs to 3 Lakhs.

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MATERNITY BENEFIT ACT, 1961

Maternity Benefit is a benefit given to the mothers-to-be or the mothers of the newly born with fully
paid leave from employment along with other benefits before and after the delivery of the child, with
a motive to facilitate the women in taking care of the child.
The case of Mamta v. Employee State Insurance Corpn. (2014) held that giving birth to and taking
care of the child is covered under the fundamental right of the child and the woman and hence the
employer shall be held liable to pay maternity benefits.
APPLICABILITY
Under the scope of Section 2(1)(a), the Act applies to all establishments including:
❖ Factories,
❖ Plantations,
❖ Mines,
❖ Every establishment wherein persons are employed for the exhibition of equestrian, acrobatic,
and other performances.
❖ Shops or establishments covered under the ambit of law having 10 or more than 10 employees.
(as provided by the 2017 amendment) This includes the private sector as well.
NOTE: The Maternity benefit Act shall be applied to any and all establishments having 10 or more
than 10 employees.
ELIGIBILITY
In Section 5(2) of the Act, it is mentioned that a woman, to be eligible for the maternity benefits under
the Act, has to be employed in the establishment for not less than 80 days in the twelve months
immediately preceding the expected delivery of the woman. (The period has been reduced from 160
days to 80 days by the virtue of 2017 amendment)
(Note: This period of 80 days does not apply to any woman who has immigrated to the state of Assam
and was pregnant during the immigration)
The ambit Women employee covers all kinds of employment whether direct or through agency or
contracts.
Conditions for eligibility to avail of the maternity benefit under Section 5:
❖ Every pregnant working woman is entitled to the payment of maternity benefits at the rate of the
average daily wage. This wage is given for the period of her actual absence immediately before
the day of her delivery including the delivery day and for a period immediately following that day.
Average daily wage =Amount earned in three months /No. of days in 3 months.
❖ Before the 2017 amendment, it was twelve weeks but now the maximum period for which any
woman shall be entitled to maternity benefit shall be twenty-six weeks.
❖ The Twenty-six weeks will be calculated from the date when she absents herself from work. She
can take maternity leave for 8 weeks before the expected delivery date and the remaining 18
weeks of leave can be taken post-childbirth. But one can also take the full 26 weeks after delivery.

DURATION OF LEAVE

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As per the provisions mentioned in the Act, the duration of the maternity leave in different cases
is as follows:
❖ 26 weeks, for a woman with up to 2 surviving children. The woman, at discretion, can take up to
8 weeks of maternity leave before the delivery and the remaining 18 weeks after the delivery.
❖ 12 weeks, for a woman already having 2 or more children. Herein, the woman, at discretion, can
take up to 6 weeks of leave before the delivery and the remaining 6 weeks after the delivery of the
child.
❖ 12 weeks, for a woman who has adopted a child below the age of 3 months from the date of
handover of the child.
❖ 12 weeks, for a commissioning mother, i.e., a mother who puts her embryo in another woman
(another woman is called the host/surrogate) from the day of handover of such child.
❖ 6 weeks, for a woman who has gone through miscarriage from the date of termination of
pregnancy, on the production of proof, as mentioned in Section 6 of the Act.
❖ 2 weeks, for a woman who has gone through Tubectomy (family planning) from the date of the
operation, on the production of proof under the ambit of Section 9(A) of the Act.
❖ 1 month, for women who suffer illnesses arising out of pregnancy, miscarriage, premature birth,
delivery, medical termination, or tubectomy along with wages as per maternity benefits.
KIND OF WORK
The women employee cannot be employed to complete tasks of the following nature under the ambit
of Section 4 of the Act:
❖ Work of arduous nature
❖ Work involving long hours of standing
❖ Work that is likely to intervene with the pregnancy or the normal growth of the fetus
❖ Work which is likely to cause her miscarriage
❖ Work can adversely affect her health.

BENEFITS PROVIDED
❖ Monetary Benefits: Under the ambit of Section 5 (1), every woman is entitled to receive
maternity benefits calculated at the rate of average daily wage for the period of her actual
absence i.e., for the whole of the maternity leave (including the period preceding the delivery, the
actual delivery date, and the period post-delivery)
❖ Nursing Breaks: As per Section 11 of the Act, every woman is entitled to 2 nursing breaks of the
prescribed duration for nursing the child until the child turns 15 months old, apart from the rest
interval allowed, through her daily course of work.
❖ Creche Facility: As per Section 11(A) of the Act (added via 2017 amendment) every
establishment with more than 50 employees is prescribed to have a creche facility for the baby
and the mother should be allowed 4 visits to the creche in a day which shall include the nursing
breaks and the rest intervals allowed to her.
❖ Work From Home: As per Section 5 (5) of the Act (as inserted by the 2017 amendment) if the job
profile of the women facilitates, the employer may allow the provision of work from home to such
women after the completion of the maternity break. The period and conditions of such work can
be mutually decided between the employer and the employee.

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❖ Medical Bonus: The woman is entitled to receive an amount of Rs. 1000 from the employer in
case the pre-natal and post-natal care is not provided by the employer at zero cost as mentioned
in Section 8(1) of the Act.
❖ Prevention from dismissal: The Act under the provision of Section 12 makes it unlawful for the
employer to dismiss or deprive an employee of claiming maternity benefits as prescribed by the
Act. Except in the cases of gross misconduct by the woman employee.
The women employee on being dismissed or deprived of such benefits may, within 60 days from the
date of the order being received, file an appeal to the prescribed authority.
PAYMENT OF MATERNITY BENEFITS UNDER DIFFERENT
CIRCUMSTANCES
As per the provisions of the act, in cases of death, the maternity benefit will be provided accordingly:
❖ Wherein both, the mother and child survive then, the maternity benefits will be provided as per
26 weeks.
❖ In case the woman survives but the child doesn’t even then the maternity benefit of the duration
of leave shall be provided. Herein as per Section 7 of the Act, the maternity benefit will be
provided to the legal representative or nominee.
❖ If the mother dies and the child survives, the maternity benefit will still be provided for the child.
❖ In the case where both, the mother and the child die then the maternity benefit till the time of the
death will be provided, which will also include the day of the death.
❖ In the case where the mother died and the child survived but later died too, the maternity benefit
will be provided till the day of the child’s death.
NOTICE
❖ As per the provisions of Section 6 of the Act, a women employee is required to submit a written
notice to her employer about the maternity leave mentioning the nominee in case of death. The
notice should mention the date from which she will be on leave which shall not be more than 8
weeks from the expected date of delivery.
❖ In case of failure of submitting the notice before delivery, the same can be done after the delivery
has been done. In case of failure, the women can be deprived of maternity benefits.
RESTRICTIONS AS TO RESIGNATION
❖ As per the provisions of the act, there are no restrictions as to the resignation of the women
employee after claiming the maternity benefits under the Act.
PAYMENT OF THE MATERNITY BENEFIT
❖ As per the provisions of Section 6(5) of the Act, the amount for maternity benefits preceding the
date of delivery shall be paid in advance and for the period after the delivery, the payment shall
be made within 48 hours of production of proof.
COMBINING OF LEAVES
❖ As per the CCS Rules, 1972, for the government servants, maternity leave can be combined with
any other kind of leave. Also, the maternity leave does not disturb the course of leaves otherwise.
CRÈCHE SERVICES [SECTION11A-(1)]

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❖ The Amendment adds a new requirement requiring creche facilities to be within a certain
distance. The mother will be permitted four visits to the creche every day, including rest time.
DISMISSAL OF THE MOTHER
❖ As per Section 12 of the Act, the employer, in case of gross misconduct can dismiss the
employee or deprive her of the maternity benefit or the bonus or both by giving an order in writing.
The term gross misconduct is not defined in the Act but Section 28 empowers states to decide
what prescribes gross misconduct. In the case of National Tobacco Co. of India Ltd. and Ors vs
Fourth Industrial Tribunal and Ors (1959) it was observed by the court that gross conduct in
itself means dismissal. If there is a case of gross conduct, there will be left no scope for
victimization and the employee might not be in a position to challenge the order.
PENALTIES FOR NON-COMPLIANCE / DEFAULT
❖ Penalty for contravention of Act by employer.—(1) If any employer fails to pay any amount of
maternity benefit to a woman entitled under this Act or discharges or dismisses such woman
during or on account of her absence from work in accordance with the provisions of this Act, he
shall be punishable with imprisonment which shall not be less than three months but which
may extend to one year and with fine which shall not be less than two thousand rupees but
which may extend to five thousand rupees:
❖ Provided that the court may, for sufficient reasons to be recorded in writing, impose a sentence
of imprisonment for a lesser term or fine only in lieu of imprisonment.
❖ (2) If any employer contravenes the provisions of this Act or the rules made thereunder, he shall,
if no other penalty is elsewhere provided by or under this Act for such contravention, be
punishable with imprisonment which may extend to one year, or with fine which may extend
to five thousand rupees, or with both:
❖ Provided that where the contravention is of any provision regarding maternity benefit or regarding
payment of any other amount and such maternity benefit or amount has not already been
recovered, the court shall, in addition, recover such maternity benefit or amount as if it were a
fine and pay the same to the person entitled thereto.
❖ Penalty for obstructing Inspector.—Whoever fails to produce on demand by the Inspector any
register or document in his custody kept in pursuance of this Act or the rules made thereunder or
conceals or prevents any person from appearing before or being examined by an Inspector shall
be punishable with imprisonment which may extend to one year, or with fine which may
extend to five thousand rupees, or with both.

[Link]. Section Default Penalty

1) Section 21 of 1)Failure in paying benefits or Imprisonment which shall not

the Act. discharge or dismissal of the mother, be less than 3 months but
on account of absence due to which may extend to 1 year and
maternity, from the employment with fine which shall not be less
(apart from the provisions of Section than 2000 rupees but which
12 i.e., in cases of Gross Misconduct) may extend to 5000 rupees
2)Contravention into the provisions of
the act by the employer regarding Imprisonment up to 3 months
maternity benefit or payment of any fine up to Rs. 5000/- or both
other amount and when recovery of

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such maternity benefit or the amount Recovery of such maternity

has not already been made. benefit or amount as if it were a
fine and the same is paid to the
entitled person by the court.

2) Section 22 of On-demand made by the inspector if Imprisonment up to 3 months

the Act the person fails to produce any or a fine of Rs. 5000/- or both
registered document or conceals a
document or prevents a person from
appearing before the inspector

Analysis of important Sections incorporated in Maternity Benefit Act, 1961

The following are the important sections that are incorporated into the Maternity Benefit Act, of 1961:
1. Maternity Leave Duration [Section 5(3)]
According to the Act, every woman is entitled to a 12-week maternity benefit. The Act aims to
raise this to 26 weeks. Furthermore, under previous laws, a woman may not use the benefit
before 6 weeks from the projected delivery date. The Amendment reduces this to an 8-week
timeframe. In the case of a woman who has two or more children, the maternity benefit will
remain at 12 weeks, which cannot be used six weeks from the projected delivery date.
2. Adoptive and Commissioning Mothers’ Maternity Leave [Section 5(4)]
The Amendment also gives a woman who lawfully adopts a child under the age of three months,
as well as a commissioning mother, who is defined as a biological mother who uses her egg to
develop an embryo implanted in another woman, 12 weeks of maternity leave. The 12 weeks of
maternity leave will begin when the kid is given over to the adoptive or commissioning mother.
3. Work from Home Possibility [Section5 (5)]
The Amendment includes an innovative provision that allows women to work from home
depending on the nature of the task they are to perform. The task might be decided upon by
mutual agreement between the employer and the employee. This option does not expire after
delivery and can be continued even after delivery for a term mutually agreed upon by the
employer and the woman.
4. Crèche Services [Section11A-(1)]
The Amendment adds a new requirement requiring creche facilities to be within a certain
distance. The mother will be permitted four visits to the creche every day, including rest time.
5. Informing female employees of their maternity leave rights: [Section11-A (2)]
The clause asks for raising awareness among female employees about the maternity benefits
that are accessible to them during their employment.
6. Miscarriage Leave [Section 9]
Following a miscarriage or medical termination of pregnancy, a woman is entitled to a 6-week
maternity benefit upon submission of medical documentation.
7. Leave with pay for tubectomy surgery [Section 9-A]
After submitting the required medical documentation, a lady will be entitled to two weeks of
maternity leave immediately following the procedure.

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8. Informing female employees of their maternity leave rights [Section11-A (2)]

The clause asks for raising awareness among female employees about the maternity benefits
that are accessible to them during their employment.
9. Dismissal while absence or pregnancy is prohibited [Section 12]
It is illegal to fire or terminate a female employee who is not present at work in compliance with
the terms of this Act. If the employer dismisses or discharges the employee, he is required by law
to give her maternity benefits or bonuses. If this is not followed, the injured woman may file an
official complaint.
10. Inspectors’ appointment [Section 14]
The government has designated Inspectors to administer and execute the Act. These Inspectors
must be Public Servants, as specified in Section 21 of the Indian Penal Code, according to
Section 16.
11. Inspector’s authority to order payment [Section 17]
An Inspector may conduct an investigation on his own or in response to a complaint filed by an
employee who is dissatisfied. If the allegation is determined to be true after inquiry, the Inspector
may order the employer to reimburse the employee. If the employee is dissatisfied with the
Inspector’s judgment, he or she may file an appeal with the appropriate authorities.
12. Penalty for employer’s violation of the Act [Section 21]
If the employer fails to pay the sum, he will be penalized in line with the Act’s requirements. There
shall be imprisoned for not less than three months and up to one year, as well as a fine of not less
than Rs.2000, which may be increased to Rs.5000. The aforementioned measures demonstrate
the legislature’s progressive approach to women’s rights and the necessity to give women with
enough opportunity and room for growth, which they were previously denied. By passing this
amendment, the legislature has committed to the spirit of a welfare state.

Main Highlights of the Amendment in Material Benefit

The Maternity Benefits (Amendment) Bill, 2017 was approved by the Rajya Sabha and Lok Sabha on
August 11, 2016, and the President of India gave his assent on March 27, 2017. The Maternity Benefits
(Amendment) Act 2017’s provisions become operative in India on April 1, 2017. However, the clauses
relating to the childcare facility (Section 11) came into force on July 1, 2017. The Act after the change
still adheres to its fundamental principles but offers better benefits and promotes better child care.
According to our investigation, the four levels of this statute have undergone the following changes:
❖ Duration of leave: The amendment offers 26 weeks of maternity leave, not to exceed 8 weeks
prior to the anticipated due date unless they have two or more living children. The overall period
of maternity leave is shown to have increased by 117% since the previous Act. Additionally, it
complies with the ILO’s suggestion of 18 weeks or more. This amendment was passed in order to
provide mothers enough time for self-healing and to improve child care, both of which would
lower the rate of infant mortality. Adoption is an exception to this rule. A commissioning mother
or a woman who adopts a child under three months old is eligible for twelve weeks of maternity
leave.
❖ Job protection: The original Act’s discharge and dismissal clause remain unchanged.
❖ Financial benefits: No immediate financial benefits have been put into practice. However, the
amendment stipulates that a woman has the right to work from home provided both her employer

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and she mutually agrees to this. Every business with 50 or more employees should include a
crèche facility, either independently or as part of the common areas. This is another benefit. The
employer will permit the woman four visits to the childcare provider.
❖ The most important modification extends maternity leave from 12 to 26 weeks. According to
the WHO, a child should be nursed for 24 weeks after birth to lower the death risk. Additionally,
it ought to lower the number of women quitting their jobs as a result of insufficient maternity
leave. Additionally, the longer leave period is in accordance with the Maternity Benefits
Convention’s suggestion (no. 183). The addition of maternity leave for commissioning and
adopting women is an important one that allows them to take care of themselves and their
children while also honouring their parenthood. Due to these changes, India now ranks third
globally in terms of the number of maternity benefits available to women, behind Canada and
Norway.
Impact of the Maternity Benefit (Amendment) Act, 2017 on employability
The effects of the Maternity Benefit (Amendment) Act, 2017 on employability have been listed
hereunder:
1. Many employers in private companies may refrain from hiring such women who may be about to
become pregnant because they are required to give them maternity leave and compensation for
that time (up to 26 weeks). Since the amendment, many firms view hiring women as a hardship.
The exclusive obligation of the employer to pay all wages in full during the allotted time increases
production costs for employers.
2. A rise in production cost occurs as the exclusive obligation of the employer to pay all wages in
full during the allotted time increases costs for employers.
3. The provision makes employers worry about their financial stability, which can lead to a
predilection for hiring men over women.
4. Losses brought on by extended maternity leave, which helps businesses that generally hire
female employees.
5. Reduces the employment chances for women employees since businesses are either reluctant
to hire them or ask them to quit right before giving birth in order to avoid further liability.
Creche Facility Introduced by Maternity Benefit (Amendment) Act, 2017
❖ In terms of Section 11A of the Maternity Benefit Act, every establishment to which the Act applies
and have fifty or more employees must establish a Crèche facility within such distance as may
be prescribed through notification. The Creche must be established either separately or along
with common facilities. The employer must allow women at least four visits a day to the crèche
and it shall also include the interval for rest allowed to her. Every establishment is required to
intimate in writing and electronically to every woman at the time of appointing her initially
regarding every benefit available under the Maternity Benefit Act.
❖ National Guidelines for setting up and running creches under the Maternity Benefit (Amendment)
Act, 2017
❖ Section 11A mandates the establishment of crèches within such distance as may be prescribed,
either separately or along with common facilities. As per Section 2(l), “prescribed” means
prescribed by rules made under this Act. Further, as per Section 28 of the Act, rules can be
prescribed by the State or Central Government as the case may be for carrying out the purposes
of the Act. The following are some of the key guidelines published in the Gazette by the Ministry
of Women and Child Development.

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Crèche For Whom

❖ The use of a crèche facility is proposed to be extended to children of the age group of 6 months
to 6 years of all employees including temporary, daily wage, consultant and contractual
personnel.
Crèche Location
❖ The center should be near/at the workplace site or in the beneficiaries’ neighborhood, within 500
meters.
Timings
❖ The crèche preferably should open for 8 hours to 10 hours. In this case, the workers can follow a
shift system. In case the establishment has day and night shifts, then the crèche should also be
run in shifts.
Facilities to be provided
Crèches should be concrete, with a min space of 10-12 [Link]. per child, with ventilation, drinking
water and with no unsafe places such as open drains, pits, garbage bins near the center. Further,
other facilities to be provided include:
❖ A guard, who should have undergone police verification.
❖ Ramps and handrails.
❖ Every Creche should have one supervisor per crèche.
❖ The Creche should have a minimum of one trained worker for every 10 children who are under
three years of age.
❖ For every 20 children above the age of three, the creche should have one trained worker along
with a helper.
❖ No plumbers, drivers, and electricians and other outside persons should be allowed inside the
crèche when children are present.
❖ A Crèche monitoring committee should be formed having representations from among crèche
workers, parents, and administration.
❖ Forming a grievance redressal committee for inquiring into instances of sexual abuse.
Maternity Benefit (Mines and Circus) Amendment Rules 2019
It is pertinent to note these rules do not apply to Crèches established in Mines and Circus
establishments. Crèches in Mines are regulated by the Maternity Benefit (Mines and Circus)
Amendment Rules 2019. Some of the key provisions include:
❖ Rule 2 (b) – The crèches are set up for children under 6 years of age.
❖ Rule 4- The crèches are divided into 4 Types (A, B, C, D) based on the number of women
employed.
❖ Rule 4- Basic Standard requirements to be provided.
❖ Rule 8- The crèches shall be open during the whole day and open at night if the women employees
are at the office.
❖ Rule 9- Restriction of access to outsiders.
❖ Rule 10- Guidelines for medical arrangements.
Are creche facilities mandatory?

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❖ The language of Section 11A of the Amendment Act, 2017 is that Crèche facilities shall be
established at “every establishment”. Thus, going by the rule of literal interpretation, it can be
inferred that the section mandates to establish crèches only in those “establishments” covered
under the definition of “establishment” under Section 3 (e) of the Act.
❖ As mentioned above, Section 11A’s mandate to set crèches applies to “establishments” under
the ambit of the Maternity Benefit Act, 1961. Further, the clarification notification issued on
behalf of The Maternity Benefit (Amendment) Act, 2017, clarified that as Section 2 has not
undergone an amendment, there are no changes regarding the application of the Act of 1961. As
per Section 2(b), an “establishment” includes every shop or establishment within the meaning of
any law for the time being in force in relation to shops and establishments in a State.
❖ Thus, Crèches are mandatory in companies, firms and consultant companies even though they
may be incorporated or registered under The Partnership Act, 1932 or Companies Act, 2013.
A look into National Maternity Benefit Schemes (NMBS) under the Indian government
❖ Under the NMBS, women of households below the poverty line who are 19 years of age or older
are given cash help of Rs. 500/- up to their first two live births. This assistance includes both pre-
delivery payment and post-delivery payment. The plan has been in operation since 1995. The
programme attempts to guarantee financial assistance to underprivileged women during their
pregnancies, and in the event that the baby dies, the women can still get the benefit of the
programme. The NBMS was replaced by a new programme called “Janani Suraksha Yojana” (JSY)
to increase its effectiveness and coverage.
Janani Suraksha Yojana
❖ The National Rural Health Mission launched the Janani Suraksha Yojana in 2005 with the primary
goal of reducing maternal and newborn mortality by encouraging institutional delivery among
women who belong to vulnerable groups in society. Depending on the pre-programme level of
institutional deliveries, the Yojana classifies states as low-performing (LPS) or high-performing
(HPS). Frontline healthcare providers known as Accredited Social Health Activists were
introduced by the Janani Suraksha Program (ASHAs). The targeted recipients are given financial
aid for delivery and postpartum care.
❖ Vande Mataram Scheme
❖ Any obstetric and gynaecological association in India as well as private clinics are welcome to
participate in this voluntary programme to provide safe motherhood services. The program’s goal
is to decrease maternal mortality and morbidity among expectant and pregnant women by
harnessing the extensive pool of skilled workers and specialists that the private sector has to
offer. The programme aims to offer free prenatal and postnatal checks, dietary counselling,
breastfeeding support through public-private partnerships, etc.
❖ Pradhan Mantri Matru Vandana Yojana
❖ With effect from 2017, the Indian Government launched the Pradhan Mantri Matru Vandana
Yojana, a maternity benefit scheme that offers monetary incentives of Rs. 5000 to expectant
mothers and nursing mothers. The Yojana intends to offer financial support as partial
compensation for wage loss so that the woman can have enough rest before and after giving birth
to the first living child. Women who hold regular employment with the federal, state, or public
sector undertakings (PSUs), or who get benefits of a similar nature under any other law, are not
eligible for the benefit under the scheme.
❖ Pradhan Mantri Surakshit Matritva Abhiyan

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❖ To ensure that pregnant women in the country receive high-quality antenatal care, a sort of
preventative healthcare, the Indian Government launched the Pradhan Mantri Surakshit Matritva
Abhiyan. In order to encourage healthy lifestyles that benefit both mother and child, the Abhiyan
provides the beneficiaries with a minimal package of preventive healthcare services on the ninth
day of every month at the Pradhan Mantri Surakshit Matritva Clinics.

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THE EMPLOYEES' COMPENSATION ACT, 1923

The “Employees Compensation Act, 1923” is an Act to provide payment in the form of compensation
by the employers to the employees for any injuries they have suffered during an accident.
In 2009, with an amendment in Workmen's Compensation Act, the act has been renamed as
Employees Compensation Act.
If the Workmen’s Compensation Act is applicable, the Employees State Insurance Act is not
applicable.
Chapter I: Preliminary
❖ Section 1: Short Title, Extent, and Commencement
✓ This Act may be called the Employees' Compensation Act, 1923.
✓ It extends to the whole of India.
✓ It came into force on the 1st day of July, 1924.
❖ It applies to employees working in factories, mines, docks, construction establishments,
plantations, oilfields and other establishments listed in Schedule I of the Employee’s
Compensation Act.
❖ It applies to persons recruited for working abroad and who is employed outside India as in
Schedule I of the Act.
❖ It applies to a person recruited as the driver, helper, mechanic, cleaner or any other in connection
with a motor vehicle and to a captain or other member of the crew of an aircraft.
❖ The act does not apply to the members of armed forces of the Union & Workmen who are covered
under ESI (Employee State Insurance) Act.
Schedule of the Act
❖ SCHEDULE I : list of injuries deemed to result in permanent total disablement.
❖ SCHEDULE II : list of persons who, subject to the provisions of section 2(1) (nn),' are included in
the definition of employees.
❖ An amendment of the Act in 2010 further added certain employments, operations and persons
in Schedule I of the Act. These include railway employees other than those employed in
administrative capacity, crew of a ship and aircraft, drivers, helpers and mechanic of motor
vehicles, persons recruited abroad by a company and employees employed by contractors.
❖ Clerks are now covered for compensation.
❖ The state government is empowered to add to Schedule II
❖ SCHEDULE III : list of occupational diseases: Part A, Part B, and Part C
❖ SCHEDULE IV : factors for working out lump sum equivalent of compensation amount in case of
permanent disablement and death.
❖ Who will be receiving the compensation on behalf of the deceased?
✓ A widow or a minor who is a legitimate son or unmarried daughter or a widowed mother is
entitled to compensation;
✓ If the family of the deceased is wholly dependant on the earnings of the employee at the time
of his death or a son or daughter who has attained the age of eighteen years;
✓ A widower;

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✓ A parent other than a widowed mother;

✓ A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or
illegitimate or adopted if married and a minor or if widowed and a minor;
✓ A minor brother or an unmarried sister or a widowed sister if a minor;
✓ A widowed daughter-in-law
✓ Employer’s fault is immaterial: The compensation is payable even when there was no fault of
employer.
✓ Compensation payable even if workman was careless: Compensation is payable even if it is
found that the employee did not take proper precautions.
✓ An employee is not entitled to get compensation only if :
a. he was drunk or had taken drugs
b. he wilfully disobeyed orders in respect of safety
c. he wilfully removed safety guards of machines.
Contributory negligence:
❖ If there is negligence on the part of both employee and the employer
❖ then the employer will be liable to pay compensation to the extent of his own negligence, not of
the employee.
❖ Number of Workmen Employed Is Not Criteria: Employer will be liable even if just one workman
is employed. The Act applies to a workshop even if it employs less than 20 workmen and is not a
‘factory’ under Factories.
ELIGIBLITY
To be eligible for the Employees’ Compensation Act’s benefits there are some requirements
which need to be fulfilled:
❖ You must be an employee of the Company or Organisation.
❖ You must have been injured at the workplace or the job was as such that you have been injured.
Will an employee who is a part-time worker would still be entitled to the benefits of the Act?
❖ Yes, the employer will still get the benefits of the Act.
❖ Doctrine of added peril: When an employee performs something which is not required in his duty,
and which involves extra danger, the employer cannot be held liable to pay compensation for the
injuries caused.
Partial Disablement
❖ Temporary Nature disablement as reduces the earning capacity of a employee in any
employment in which he was engaged at the time of the accident resulting in the disablement
❖ Permanent Nature disablement as reduces his earning capacity in every employment which he
was capable of undertaking at that time
Total Disablement: such disablement, whether of a temporary or permanent nature
incapacitates a employee for all work which he was capable of performing at the time of the
accident resulting in such disablement.
❖ Section 2: Definitions

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Key Definitions
1. Dependent:
❖ Who is a dependent?
✓ The term "dependent" refers to the family members of a deceased employee who are entitled
to compensation in the event of the employee's death.
✓ It includes:
➢ A widow or widower.
➢ A minor legitimate or adopted son and an unmarried legitimate or adopted daughter.
➢ Parents wholly or mainly dependent on the employee.
➢ In some cases, siblings or grandparents if they were dependent on the deceased worker.
✓ Dependency is assessed based on financial reliance on the deceased employee.
2. Employer:
❖ Who qualifies as an employer?
✓ The term covers:
➢ Direct employers under whose authority the employee works.
➢ Contractors or sub-contractors who hire employees for specific tasks.
➢ Legal representatives of a deceased employer.
✓ Example: If a company hires workers through a contractor, both the company and the
contractor can be considered employers for liability purposes under the Act.
3. Partial Disablement:
❖ What is partial disablement?
✓ A condition where the worker cannot perform all job functions as efficiently as before the
injury.
✓ Two types:
➢ Permanent Partial Disablement: Permanent reduction in earning capacity (e.g., loss of
a finger or vision in one eye).
➢ Temporary Partial Disablement: Temporary inability to perform some duties until
recovery.
✓ Partial disablement affects the calculation of compensation based on the percentage of
earning capacity lost.
4. Total Disablement:
❖ What is total disablement?
✓ A condition where the worker is completely unable to work and earn wages.
✓ Can be temporary or permanent:
➢ Permanent Total Disablement: Permanent loss of earning capacity (e.g., loss of both
hands, total blindness).
➢ Temporary Total Disablement: Temporary inability to work due to injuries (e.g.,
fractures, severe burns).
✓ Total disablement typically results in higher compensation.

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❖ Wages:
✓ What constitutes wages?
➢ Includes all remuneration capable of being expressed in monetary terms.
➢ Covers:
• Basic salary.
• Allowances like dearness allowance (DA) and traveling allowances.
• Monetary value of free housing or food (if provided as part of employment).
➢ Excludes:
• Bonuses, contributions to pensions, and other sums not earned by regular
employment.
➢ Wages form the basis for calculating compensation under Sections 4 and 5.
❖ Workman:
✓ Who is a workman under the Act?
➢ Any person (including apprentices) employed in any capacity specified in Schedule II.
➢ Includes:
• Workers in hazardous industries like factories, mines, railways, and construction.
• Excludes casual workers not engaged in the employer's trade or business.
➢ Example: A carpenter working for a construction company is a workman, but a domestic
helper hired for private home services is not.
Additional Key Terms
❖ Occupational Disease:
✓ A disease listed in Schedule III, arising due to the nature of employment (e.g.,
pneumoconiosis in coal mines).
❖ Medical Practitioner:
✓ A registered medical professional authorized to provide treatment and assess injuries under
the Act.
❖ Commissioner:
✓ A quasi-judicial officer appointed under the Act to resolve disputes and oversee
compensation matters.
❖ Accident
❖ The Act provides that compensation is provided to employees and their dependants only if the
injuries from the accident includes occupational diseases.
❖ The accident must occur in the course of employment the Act also applies to railway servants
and persons employed in any such capacity as specified in Schedule 2 of the Employees
Compensation Act. The people employed in factories, mines, plantations, vehicles, construction
works, and certain other hazardous occupations come under Schedule 2.
❖ Both fatal and non-fatal accidents are covered by the Employees Compensation Policy.
❖ A fatal accident is one where there is death or a high risk of loss of life of the employee. In the
case of a fatal accident, the employee might die or suffer severe disablements and injuries.

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❖ Non-fatal accidents are those accidents that do not have a high probability of death. In the case
of non-fatal accidents, the employee or the workman might suffer disabilities or any type of
personal injury.
Chapter II: Workmen's Compensation
❖ Section 3: Employer's Liability for Compensation
✓ Employers are liable to compensate workers for personal injuries caused by accidents arising
out of and in the course of employment, subject to certain exceptions.
✓ Occupations which expose employees to particular diseases that are:
✓ Infra-red radiations;
✓ Skin diseases due to chemical or leather processing units;
✓ Hearing impairment caused by noise;
✓ Lung cancer caused by asbestos dust and Diseases due to effect of extreme climatic
conditions.
✓ Provided that the employer shall not be liable:
✓ (a) if any injury does not result in the total or partial disablement of the employee for a period
exceeding three days;
✓ (b) if any injury does not result in death or permanent total disablement caused by an
accident which is directly attributable to-
✓ if the employee is under the influence of drink or drugs at that time,
✓ the wilful disobedience of the employee to an order expressly given, or to a rule expressly
framed, for the purpose of securing the safety of employees,
✓ the wilful removal by the employee of any safety guard or other devices which he knew to
have been provided for the purpose of securing the safety of employees.
❖ Section 4: Amount of Compensation
✓ Details the compensation amounts for death, permanent total disablement, permanent
partial disablement, and temporary disablement, calculated based on the employee's
monthly wages and age.
❖ While calculating the compensation of the workman, age of the workman and relevant factor is
taken in to account.
Where death results from the injury-
❖ Amount = 50% of the monthly wages * relevant factor
❖ Or Rs.120000 whichever is higher
❖ (Wage Ceiling fixed to 15000 - Amendment 2020)
Where permanent total disablement results from the injury-
Amount = 60% of the monthly wages * relevant factor
❖ Or Rs. 140000 whichever is higher
Where permanent partial disablement results from injury-
Injury Specified in Schedule I, PART II:

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❖ Percentage of the compensation which is payable in the case of permanent total disablement as
is specified therein as being the percentage of the loss of earning capacity caused by that injury.
❖ Injury not specified Schedule I: percentage of the compensation payable in the case of
permanent total disablement as is proportionate to the loss of earning capacity (as assessed by
the qualified medical practitioner) permanently caused by the injury.
❖ Where (temporary disablement, whether total, or partial results from the injury: a half-monthly
payment of the sum equivalent to 25 % of monthly wages of the employee half-monthly payable
16TH day
(i) disablement lasts for a period of 28 days or more, or
(ii) after the expiry of a waiting period of 3 days from the date of disablement if disablement lasts
for a period of less than 28 days

❖ The employee shall be reimbursed the actual medical expenditure incurred by him for treatment
of injuries caused during the course of employment.
❖ If the injury results his death, the employer shall, in addition to the compensation, deposit with
the Commissioner a Sum of RS 5000 for payment of the same to the eldest surviving dependant
of the employee towards the expenditure of the funeral of such Employee] or where the employee
did not have a dependant or was not living with his dependant at the time of his death to the
person who actually incurred such expenditure.
Funeral expenses for death
In addition to compensation deposit with the Commissioner funeral expenses Rs.5000 to payment
of the same to the eldest surviving dependent or to the person who actually incurred such
expenditure
It also allows the central government to modify the amount from time to time.
❖ Section 4A: Compensation to be Paid When Due and Penalty for Default
✓ Compensation should be paid as soon as it falls due.
✓ If there is a delay without justification, the employer may be liable to pay interest at the rate
of 12% per annum and a further sum by way of penalty.
❖ Section 5: Method of Calculating Wages
✓ Provides the method for calculating monthly wages for the purpose of determining
compensation.
✓ When the employee has been giving service to the employer during a continuous period of
not less than 12 months preceding the accident.
✓ Monthly wages =1/12th OF TOTAL WAGES
❖ Section 6: Review
✓ Allows for the review of half-monthly payments under certain circumstances, such as
changes in the condition of the employee.
❖ Section 7: Commutation of Half-Monthly Payments
✓ Permits the commutation of half-monthly payments into a lump sum under specific
conditions.
❖ Section 8: Distribution of Compensation

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❖ Compensation must be paid to the dependents only. No other persons except dependents
having are right to claim compensation.
❖ If no dependent is there for deceased (dead) workman, there is no necessity to pay compensation
by the employer. [Sec 8 (4)].
❖ If two or more dependents exist for a deceased workman, the compensation amount shall be
distributed by the commissioner according to his wish. [Sec 8 (5)].
❖ If the workman dependent is of legal disability ((a minor), or mental capacity), the compensation
amount shall be invested for their according to the directions of the commissioner.
❖ Section 9: Compensation Not to Be Assigned, Attached, or Charged
✓ Ensures that compensation cannot be assigned, attached, or charged, protecting the
financial interests of the injured employee or dependents.
❖ Section 10: Notice and Claim
✓ Specifies the requirement for employees to give notice of the accident and the timeframe for
claiming compensation.
❖ Section 10A: Power to Require from Employers Statements Regarding Fatal Accidents
✓ Empowers the Commissioner to require employers to submit statements regarding fatal
accidents.
❖ Section 10B: Reports of Fatal Accidents and Serious Bodily Injuries
✓ Mandates employers to report fatal accidents and serious bodily injuries to the
Commissioner.
❖ Section 11: Medical Examination
Overview
Section 11 of the Employees’ Compensation Act, 1923, deals with the process and rights related to
the medical examination of an injured employee who claims compensation under the Act. It ensures
fairness in the evaluation of injuries and disabilities.
Key Provisions
1. Right of the Employer to Require Medical Examination:
✓ An employer has the right to require the injured employee to undergo a medical examination
by a qualified medical practitioner to assess the extent of injury or disablement.
✓ This ensures that the claim is valid and the compensation amount is based on accurate
medical findings.
2. Reasonable Notice:
✓ The employee must be given reasonable notice before the medical examination is
conducted.
✓ This allows the employee to prepare and be present at the specified time and place.
3. Refusal to Submit to Examination:
✓ If the employee refuses to undergo the medical examination without a valid reason, the
employer may suspend the payment of compensation for the period of refusal.
✓ Suspension of compensation does not permanently disqualify the claim but delays the
payment until compliance.

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4. Continuous Medical Monitoring:

✓ If an employee is undergoing treatment or is claiming temporary disablement, the employer
can require periodic medical examinations to assess recovery and adjust compensation
accordingly.
5. Employee’s Right to Witness the Examination:
✓ The employee can have a representative or observer present during the medical examination
if they wish to ensure fairness.
Significance of Section 11
1. Fairness in Compensation Assessment:
✓ Ensures that compensation is based on an accurate medical evaluation of the injury or
disability.
2. Prevention of Fraudulent Claims:
✓ Helps employers verify the legitimacy and extent of injury claims.
3. Balance Between Rights and Obligations:
✓ Protects both employer and employee interests by requiring transparency and fairness in the
medical examination process.
Practical Example
Scenario:
❖ An employee claims compensation for a back injury sustained during work.
❖ The employer requires the employee to undergo a medical examination by a certified doctor to
confirm the injury and assess its impact on earning capacity.
❖ The doctor’s report indicates that the injury is temporary, and the employee is likely to recover
fully within three months. Based on this, the employer calculates compensation for temporary
disablement.
Section 12: Contracting
Overview
Section 12 of the Employees’ Compensation Act, 1923, establishes the liability of a principal
employer when an employee is hired through a contractor and suffers an injury. It ensures that
employees working under contractors are not left uncompensated due to any incapacity of the
contractor.
Key Provisions
1. Liability of Principal Employer:
✓ When an employee, working under a contractor for a task that is part of the principal
employer’s trade or business, suffers a personal injury, the principal employer is liable to pay
compensation as if the employee was directly employed by them.
✓ Example: A factory hires a contractor for machine maintenance. If a worker under the
contractor is injured during the task, the factory owner is liable for compensation.
2. Right to Indemnity:
✓ After paying compensation, the principal employer has the right to recover the amount from
the contractor.

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✓ This ensures that the principal employer is not unfairly burdened with the liability.
3. Applicability:
✓ This section applies only when:
➢ The employee works under a contractor hired to perform tasks related to the principal
employer's trade or business.
➢ The injury occurs in the course of employment.
4. Exceptions:
✓ The principal employer is not liable if:
➢ The contractor was engaged to perform work unrelated to the principal employer’s
business.
➢ The injury does not arise out of and in the course of employment.
Practical Example
Scenario:
❖ A construction company hires a contractor to perform excavation work on its site. A worker
employed by the contractor suffers an injury due to unsafe equipment.
❖ The construction company (principal employer) is liable to pay compensation to the injured
worker.
❖ The construction company can later recover the compensation amount from the contractor
responsible for providing safe equipment.
Section 13: Remedy of Employer Against Stranger
❖ Overview:
This section provides a remedy for employers to recover compensation paid to an injured
employee when the injury is caused by a third party (stranger).
❖ Key Provisions:
1. Right to Indemnity:
✓ If the injury to an employee is caused under circumstances where a third party is legally
liable, the employer has a right to recover compensation paid to the employee from that
third party.
✓ Example: If a driver employed by a company is injured in a road accident caused by
another vehicle, the employer can claim indemnity from the owner of the other vehicle.
2. Subrogation:
✓ The employer is subrogated to all rights of the injured employee against the third party for
recovering the amount paid as compensation.
3. Exception:
✓ The employer cannot recover amounts paid beyond what is required by the Act.
❖ Practical Application:
✓ This section ensures that liability for injuries caused by a third party does not unduly
burden the employer.
Section 14: Insolvency of Employer

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❖ Overview:
This section deals with the situation where an employer becomes insolvent or, in the case of a
company, is wound up.
❖ Key Provisions:
1. Priority of Compensation:
✓ Compensation payable under the Act is treated as a priority debt, taking precedence over
most other debts.
✓ This ensures that employees or their dependents receive compensation even if the
employer has limited resources.
2. Applicability:
✓ This section applies to cases of personal insolvency, corporate liquidation, or winding up
of a partnership firm.
3. Legal Enforcement:
✓ The Commissioner for Employees' Compensation may enforce this priority against the
insolvent estate.
❖ Practical Application:
This provision protects employees by ensuring compensation is safeguarded in cases of financial
instability of the employer.
Section 15: Special Provisions Relating to Master and Seamen
❖ Overview:
This section outlines special rules for employees working on ships, referred to as "seamen."
❖ Key Provisions:
1. Definition of Seamen:
✓ Includes crew members of ships registered in India who are not casually employed but
are engaged under a contract of service.
2. Liability for Injuries:
✓ The owner of the ship is liable for compensating seamen who suffer injuries during
employment.
3. Injuries Occurring Outside India:
✓ If a seaman is injured while working outside India, the liability still falls under the Act if
the ship is registered in India.
4. Exemptions:
✓ This section does not apply to seamen working on warships or other government vessels.
❖ Practical Application:
Special provisions are necessary for seamen due to the unique risks and challenges associated
with maritime employment, including international jurisdiction complexities.
❖ Section 15A: Special Provisions Relating to Captains and Other Members of Crew of Aircraft
Extends the Act's provisions to aircraft crew members with necessary adaptations.
❖ Section 15B: Special Provisions Relating to Workmen Abroad of Companies and Motor
Vehicles

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Applies the Act to workmen recruited by companies in India and working abroad, including those
working with motor vehicles.
Section 16: Returns as to Compensation
❖ Overview:
This section mandates employers to maintain records and submit reports regarding
compensation payments.
❖ Key Provisions:
1. Obligation to Submit Returns:
✓ Employers must submit periodic returns (reports) to the relevant authority, detailing:
• Amounts paid as compensation.
• Details of accidents resulting in compensation claims.
✓ The format and frequency of these returns are prescribed by the government.
2. Inspection and Compliance:
✓ Authorities have the right to inspect these returns to ensure compliance with the Act.
3. Penalties for Non-Compliance:
✓ Failure to submit returns or maintaining inaccurate records can result in penalties as
prescribed under the Act.
❖ Practical Application:
Ensures transparency and accountability in the implementation of compensation provisions.
Section 17: Contracting Out
❖ If an employee has made a contract or agreement before or after the commencement of the act,
and if he voluntary ceases the right to compensation from the employer it shall be considered
null and void.
Section 18: Proof of Age
Key Provisions
1. Submission of Proof of Age:
✓ The section mandates that the injured employee (or their dependents in case of death) must
furnish proof of age to the Commissioner for determining the amount of compensation.
✓ The age is critical because the compensation calculation under Section 4 involves factors
like earning capacity and age at the time of injury or death.
2. Acceptable Proof:
✓ Acceptable documents may include:
➢ Birth certificates.
➢ School-leaving certificates.
➢ Government-issued ID with age (e.g., Aadhaar card, Voter ID, etc.).
➢ Any other official records recognized as valid proof of age.
3. Discretion of the Commissioner:
✓ If there is a dispute or lack of concrete evidence, the Commissioner has the authority to
decide the age based on available information.

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✓ Example: If no document is available, the Commissioner might rely on medical examinations

or witness testimonies to estimate the age.
4. Verification:
✓ The Commissioner may require further verification of the documents submitted to ensure
their authenticity.
Significance of Section 18
1. Accurate Compensation Calculation:
❖ The employee’s age determines their factor value from the Schedule IV table, which is used to
calculate compensation for death or permanent disablement.
❖ Example: Younger employees have a higher factor value, resulting in greater compensation
amounts.
2. Prevents Fraud:
❖ By requiring proof of age, the Act prevents false claims or exaggerations in compensation
amounts.
3. Fairness and Transparency:
❖ Ensures that compensation aligns with the actual age of the employee or deceased worker,
fostering fairness for both employers and employees.
Practical Example
Case:
A worker aged 35 years dies in a workplace accident. His monthly wage was ₹12,000. The
dependents claim compensation but provide conflicting age documents—one shows 35 years, and
another claims 30 years.
❖ The Commissioner investigates and accepts a school certificate showing the worker was indeed
35 years old.
❖ Using the factor from Schedule IV for 35 years (197.06), the compensation amount is calculated
as:
Compensation=50%×MonthlyWages×AgeFactorCompensation=50%×MonthlyWages×AgeFact
or
=50%×12,000×197.06=₹11,82,360=50%×12,000×197.06=₹11,82,360
Chapter III: Commissioners
❖ Section 19: Reference to Commissioners
✓ Empowers Commissioners to settle disputes arising under the Act.
❖ Section 20: Appointment of Commissioners
✓ Provides for the appointment of Commissioners by the State Government.
✓ Commissioner means a commissioner for employee compensation appointed.
✓ The state government or the central government may appoint any person to be commissioner
for workmen’s or employees’ compensation act in some specified areas.
✓ Every commissioner is identified as a public servant in the Indian Penal Code.
✓ If the state government appoints more than one commissioner for any area, a specific order
may regulate the business.

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✓ Any commissioner may choose a person or more persons who possess knowledge and assist
him in holding the inquiry.
❖ Section 21: Venue of Proceedings and Transfer
✓ Specifies the venue for proceedings and the conditions for transferring cases.
❖ Section 22: Form of Application
✓ Details the form and manner of applications to the Commissioner.
❖ Section 22A: Power of Commissioner to Require Further Deposit in Cases of Fatal Accident
✓ Allows the Commissioner to require further deposits from the employer in fatal accident
cases.
❖ Section 23: Powers and Procedure of Commissioners
✓ Empowers Commissioners to exercise the same powers as civil courts under the Code of
Civil Procedure, 1908, for summoning witnesses, requiring documents, etc.
❖ Section 24: Appearance of Parties
✓ Allows parties to appear in person or be represented by legal practitioners or authorized
agents.
❖ Section 25: Method of Recording Evidence
✓ Provides for recording evidence in summary form by the Commissioner.
❖ Section 26: Costs
✓ Enables the Commissioner to award costs in proceedings, which may be recovered as
arrears of land revenue.
❖ Section 27: Power to Submit Cases
✓ Permits Commissioners to refer cases for the opinion of a High Court on points of law.
❖ Section 28: Registration of Agreements
✓ Mandates the registration of compensation agreements between employers and employees
with the Commissioner.
❖ Section 29: Effect of Failure to Register
✓ Invalidates agreements not registered with the Commissioner.
Chapter IV: Rules
❖ Section 30: Appeals
❖ Appeals from the Commissioner’s order: The Act provides that any dispute related to an
employee’s compensation will be heard by a Commissioner (with powers of a civil court).
Appeals from the Commissioner’s order, related to a substantial question of law, will lie before
the High Court.
❖ Further, the Act stipulates that appeals can be made against orders related to compensation,
distribution of compensation, award of penalty or interest, etc. only if the amount in dispute is at
least ten thousand rupees. It permits the central government to further raise this amount.
❖ Section 31: Withholding of Certain Payments Pending Decision of Appeal
✓ Empowers the High Court to withhold certain payments pending appeal decisions.
❖ Section 32: Power of State Governments to Make Rules

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✓ Grants State Governments the authority to frame rules to implement the provisions of the
Act.
❖ Section 32A: Power of Central Government to Make Rules
✓ Grants the Central Government the authority to frame rules regarding matters under its
purview.
❖ Section 33: Publication of Rules
✓ Requires the publication of all rules made under the Act in the Official Gazette.
Key Highlights and Provisions
1. Applicability:
✓ The Act applies to all employees working in hazardous environments and industries listed in
Schedule II.
✓ It excludes casual workers employed otherwise than for trade or business purposes.
2. Compensation Framework:
✓ Focuses on compensating injuries arising during the course of employment, including
specific conditions for occupational diseases (Schedule III).
3. Penalties for Non-Compliance:
✓ Employers are liable for penalties if they fail to comply with the provisions related to reporting
accidents or paying due compensation.
4. Role of Commissioners:
✓ Commissioners act as quasi-judicial authorities to adjudicate disputes and enforce the
provisions of the Act.
Amendments and Updates
1. The Act has been periodically amended to:
✓ Enhance compensation amounts to align with inflation.
✓ Introduce interest and penalties for delays in payment.
✓ Expand the scope of occupational diseases and sectors.
2. The most notable amendments include provisions for digitized reporting and increased penalties
for defaulting employers.
Schedules
1. Schedule I:
✓ Specifies the list of injuries deemed to result in permanent total or partial disablement.
2. Schedule II:
✓ Enumerates the categories of workers and their respective employments covered under the
Act.
3. Schedule III:
✓ Lists occupational diseases classified as work-related hazards eligible for compensation.
Q1. Objective of the Act

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❖ Explanation: The Act focuses on ensuring financial support to workers injured during
employment. It is not concerned with unemployment benefits (covered under other schemes) or
wage parity but purely with compensating work-related injuries or illnesses.
Q2. Definition of Employer (Section 2)
❖ Explanation: The term "employer" includes not only the direct employer but also contractors and
sub-contractors who hire workers for specified employment categories.
Q3. Employer’s Liability (Section 3)
❖ Explanation: Section 3 explicitly states the employer’s liability to compensate for injuries
"arising out of and in the course of employment," provided certain exceptions (e.g., self-inflicted
injuries, intoxication) are not applicable.
Q4. Penalty for Delay (Section 4A)
❖ Explanation: Delays in payment without a valid reason attract both interest and penalties. This
ensures timely compensation to the injured worker or their dependents.
Q5. Calculation for Permanent Partial Disablement
❖ Explanation: The compensation depends on the degree of disability as a percentage of the
worker’s full earning capacity. This ensures fairness in evaluating the worker’s reduced ability to
earn.
Q6. Notice Period (Section 10)
❖ Explanation: A 30-day notice period allows the employer sufficient time to investigate the
accident while ensuring the worker reports the incident promptly.
Q7. Schedule III: Occupational Diseases
❖ Explanation: This schedule lists diseases like pneumoconiosis, asbestosis, and lead poisoning,
commonly associated with hazardous industries. These diseases are presumed to be caused by
employment unless proven otherwise.
Q8. Appeals (Section 30)
❖ Explanation: Appeals to the High Court are allowed only for significant disputes (minimum
₹5,000) to prevent courts from being overburdened with trivial matters.
Q9. Temporary Disablement Compensation
❖ Explanation: Compensation during temporary disablement is paid in half-monthly installments
to ensure the worker receives periodic financial support for recovery.
Q10. Role of the Commissioner
❖ Explanation: The Commissioner is the central authority for adjudicating disputes under the Act.
They are empowered to enforce provisions, determine compensation amounts, and ensure
compliance.

Additional Pointers to Note:

1. Amendments and Updates:
❖ Recent amendments have increased compensation amounts and introduced digitized reporting
for improved transparency.
2. Employer’s Defense:
❖ Employers can avoid liability if the injury is due to:

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✓ The employee being under the influence of drugs/alcohol.

✓ Intentional self-harm by the employee.
3. Hierarchy of Claims:
❖ Compensation takes precedence over all other dues or claims in case of insolvency or liquidation
of the employer.
4. Role of Rules:
❖ Central and State Governments are empowered to frame detailed rules to implement and adapt
the Act based on local needs.
Multiple choice Questions
Q1. What is the main objective of the Employees’ Compensation Act, 1923?
A. To provide unemployment benefits
B. To compensate employees for injuries arising out of and during employment
C. To ensure equal pay for equal work
D. To promote skill development
Answer: B

Q2. Which section of the Employees' Compensation Act defines the term "employer"?
A. Section 2(1)
B. Section 3
C. Section 2(d)
D. Section 10
Answer: C

Q3. Under which section of the Act is the employer liable to compensate an employee for
personal injury?
A. Section 3
B. Section 4
C. Section 5
D. Section 6
Answer: A

Q4. What is the maximum penalty for an employer who delays the payment of compensation
under Section 4A of the Act?
A. 20% of the amount due
B. 50% of the amount due
C. Up to ₹1,000
D. Up to ₹5,000
Answer: B

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Q5. What is the basis for calculating compensation for permanent partial disablement?
A. The employee’s annual wages
B. The extent of disablement and monthly wages
C. A fixed lump sum decided by the Commissioner
D. The discretion of the employer
Answer: B

Q6. Under the Act, what is the time limit for an employee to notify the employer about an
accident?
A. 7 days
B. 30 days
C. 15 days
D. No time limit
Answer: B

Q7. Which schedule in the Employees' Compensation Act, 1923, lists occupational diseases?
A. Schedule I
B. Schedule II
C. Schedule III
D. Schedule IV
Answer: C

Q8. Appeals to the High Court under Section 30 of the Act are allowed only if the disputed
compensation amount is:
A. ₹1,000 or more
B. ₹5,000 or more
C. ₹10,000 or more
D. ₹15,000 or more
Answer: B

Q9. If a worker suffers temporary disablement, how is the compensation paid?

A. Lump sum payment
B. Monthly installments
C. Half-monthly installments
D. Annual installments
Answer: C

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Q10. Who is authorized to decide disputes regarding compensation under the Act?
A. Labour Court
B. Civil Court
C. Commissioner for Employees' Compensation
D. Ministry of Labour
Answer: C

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THE PLANTATIONS LABOUR ACT, 1951

Introduction
❖ Objective:
✓ Regulate the working conditions of plantation labourers.
✓ Ensure welfare measures such as housing, health, and education.
✓ Applicable to tea, coffee, rubber, cinchona, cardamom, and other specified plantations.
❖ Historical Background:
✓ Introduced to provide comprehensive welfare and safety provisions for plantation workers in
remote areas.
✓ 1981 Amendment: Included compulsory registration of plantations and reduced weekly work
hours.
Chapter 1: Preliminary
❖ Geographical Scope: Extends to all of India except Jammu and Kashmir (now applies across
India post-2019 amendment).
❖ Applicability:
✓ Covers plantations of 5 hectares or more employing 15 or more workers.
✓ State governments may extend its provisions to smaller plantations or those employing fewer
workers through notifications.
Definitions (Section 2)
❖ Adolescent:
✓ Refers to a person who has completed their 15th year of age but has not completed their 18th
year.
✓ This classification is crucial as specific provisions regarding working conditions and hours
apply differently to adolescents under the Act.
❖ Adult:
✓ A person who has completed their 18th year of age.
✓ Adults are subject to different work regulations compared to adolescents or children.
❖ Child:
✓ Refers to a person who has not completed their 15th year of age.
✓ The Act prohibits employment of children in plantations, adhering to child labour laws.
Employer:
❖ This term is used to define the person responsible for managing and controlling the plantation. It
includes:
❖ The owner of the plantation.
❖ Agents or other personnel responsible for supervision, management, or control on behalf of the
owner.
❖ The employer bears legal and financial responsibilities under the Act.
Family:

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❖ Includes the worker's:

❖ Spouse.
❖ Children (dependent on the worker and under 18 years of age).
❖ Parents (dependent on the worker).
❖ This definition helps identify dependents eligible for welfare benefits.
❖ Plantation:
✓ Refers to any land used for cultivating tea, coffee, rubber, cinchona, cardamom, or other
crops specified by the government.
✓ The land must measure at least 5 hectares and employ 15 or more workers.
✓ This definition excludes factories and small holdings below these thresholds.
❖ Wages:
✓ Includes all remuneration expressed in terms of money, paid to workers for their services.
✓ Excludes bonuses, contribution to provident funds, and gratuities.
❖ Worker:
✓ A person employed in a plantation for manual or clerical work, whether on a permanent or
temporary basis.
✓ It does not include:
➢ Medical personnel.
➢ Family members of the employer.
➢ Individuals employed in managerial or administrative roles.
Chapter 1A: Registration of Plantations
1. Appointment of Registering Officers (Section 3A):
✓ State Governments appoint officers to oversee registration.
2. Procedure for Registration (Section 3B):
✓ Employers must apply for registration within 60 days of starting a plantation.
✓ Registering officer issues a certificate upon compliance.
3. Appeals (Section 3C):
✓ Aggrieved parties can appeal registration decisions within 30 days.
Chapter II: Inspecting Staff
1. Inspecting Staff (Section 5):
✓ Chief Inspectors and subordinate officers ensure compliance.
2. Certifying Surgeons (Section 6):
✓ Appointed to certify workers and supervise working conditions.
Chapter III: Provisions for Health
1. Drinking Water (Section 8):
✓ Employers must ensure a sufficient supply of clean drinking water.
2. Conservancy Arrangements (Section 9):

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✓ Separate and sanitary toilets for men and women.

3. Medical Facilities (Section 10):
✓ Provision and maintenance of medical facilities for workers and their families.
✓ Costs recoverable as arrears of land revenue in case of default.
Chapter IV: Welfare Measures
1. Canteens (Section 11):
✓ Mandatory for plantations employing 150 or more workers.
2. Creches (Section 12):
✓ For plantations with 50 or more women workers or 20+ children below 6 years.
3. Recreational Facilities (Section 13):
✓ Employers must provide for indoor and outdoor recreational activities.
4. Educational Facilities (Section 14):
✓ Primary schools mandatory where 25+ children (6–12 years) are present.
5. Housing (Section 15):
✓ Housing must be provided for workers and their families.
✓ Liability for compensation in case of injury/death due to housing collapse (Section 16A).
6. Welfare Officer (Section 18):
✓ Plantations with 300+ workers must appoint a Welfare Officer.
Chapter IVA: Safety Provisions
1. Accident Notification (Section 32A):
✓ Mandatory reporting of serious accidents to authorities.
2. Accident Register (Section 32B):
✓ Employers must maintain records of all accidents.
Chapter V: Working Hours and Employment Restrictions
1. Weekly Hours (Section 19):
✓ Adults: Max 48 hours; Adolescents/children: Max 27 hours.
2. Women and Child Labour (Section 25):
✓ Prohibited work hours: 6 PM to 7 AM (exceptions: nurses/midwives).
3. Rest Intervals (Section 21):
✓ Half-hour break after 5 hours of work.
4. Overtime (Section 29):
✓ Double wages for work beyond 48 hours per week or on rest days.
✓ Max work hours: 9/day, 54/week.
Chapter VI: Leave with Wages
1. Annual Leave (Section 30):
✓ Adults: 1 day leave for every 20 days worked.

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✓ Children: 1 day leave for every 15 days worked.

2. Accumulation of Leave (Section 30):
✓ Adults: Up to 30 days; Children: Up to 40 days.
3. Wages for Leave Period (Section 31):
✓ Equal to the average daily wage of the preceding month.
4. Advance Payment (Section 31):
✓ For leave exceeding 4 days (adults) or 5 days (children).
5. Sickness and maternity benefits (Section 32)
Chapter VII: Penalties
❖ Penalties (Section 36):
✓ Up to 3 months imprisonment, ₹500 fine, or both.
✓ Enhanced penalties for repeated offences.
1. Case: "Bihar Plantation Workers Union v. The State of Bihar" (2002)
✓ Facts: The workers of a tea plantation in Bihar filed a case for better living conditions,
including the provision of housing and medical care.
✓ Judgment: The court ruled in favour of the workers, directing the plantation owners to
implement proper housing and medical facilities as per the provisions of the Plantations
Labour Act, 1951.
2. Case: "Tea Estate Workers Union v. Government of Assam" (2005)
✓ Facts: A group of workers at a tea estate challenged the lack of adequate health and safety
measures in the plantation.
✓ Judgment: The court held that the estate owners were violating the safety regulations under
the Act and ordered immediate compliance with the health and safety provisions.
3. Case: "Kerala State Plantation Corporation v. Kerala Plantation Workers' Union" (2010)
✓ Facts: The workers claimed that they were not receiving timely wages, which was against the
provisions of the Act.
✓ Judgment: The court directed the plantation corporation to pay all pending wages to workers
and set up a mechanism to ensure regular wage payments.

Multiple choice Questions

1. The Plantation Labour Act, 1951, is applicable to plantations with a minimum area of:
A. 1 hectare
B. 5 hectares
C. 10 hectares
D. 15 hectares
Answer: B. 5 hectares

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2. Under the Act, which of the following is a mandatory welfare facility for plantations employing
150 or more workers?
A. Creches
B. Canteens
C. Housing
D. Primary Schools
Answer: B. Canteens

3. According to the Act, adolescents are classified as individuals aged:

A. Below 14 years
B. Between 14 and 18 years
C. Above 18 years
D. Between 12 and 16 years
Answer: B. Between 14 and 18 years

4. What is the maximum number of hours an adult worker can work per week under the Act?
A. 40 hours
B. 48 hours
C. 54 hours
D. 60 hours
Answer: B. 48 hours

5. Which section of the Act deals with housing facilities for plantation workers?
A. Section 10
B. Section 12
C. Section 15
D. Section 20
Answer: C. Section 15

6. For how many days can annual leave be accumulated by an adult worker as per the Act?
A. 20 days
B. 30 days
C. 40 days
D. 50 days
Answer: B. 30 days

7. Which authority is responsible for registering plantations under the Act?

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A. Labour Commissioner
B. Registering Officer
C. Certifying Surgeon
D. Chief Inspector
Answer: B. Registering Officer

8. What is the maximum penalty for a first-time offence under the Plantation Labour Act, 1951?
A. ₹100 fine
B. ₹500 fine or 3 months imprisonment
C. ₹1,000 fine
D. ₹5,000 fine
Answer: B. ₹500 fine or 3 months imprisonment

9. Which of the following is a condition under which creches must be provided?

A. 50 or more workers in the plantation
B. 50 or more women workers or 20 or more children below 6 years
C. 25 or more children between 6–12 years
D. Any number of workers with children below 6 years
Answer: B. 50 or more women workers or 20 or more children below 6 years

10. What rate of wages is payable for overtime work as per the Act?
A. 1.5 times the normal wage
B. 2 times the normal wage
C. 1.25 times the normal wage
D. Same as the normal wage
Answer: B. 2 times the normal wage

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THE MOTOR TRANSPORT WORKERS ACT, 1961

Introduction:
The Motor Transport Workers Act, 1961 is an important labor legislation in India aimed at regulating
the conditions of employment, safety, welfare, and compensation of workers employed in the motor
transport industry. This includes drivers, conductors, cleaners, and other personnel who work in the
transportation sector, such as buses, trucks, and taxis.
The Act primarily ensures that the workers in this sector work under safe conditions, receive fair
wages, and have adequate rest periods.
Chapter I: Preliminary
❖ Section 1: Short Title, Extent, Commencement, and Application
✓ Short Title: The Act is named the Motor Transport Workers Act, 1961.
✓ Extent: It extends to the whole of India.
✓ Commencement: The Act came into force on a date appointed by the Central Government,
not later than March 31, 1962.
✓ Application: Applicable to every motor transport undertaking employing five or more motor
transport workers. State Governments may extend its provisions to undertakings with fewer
than five workers after providing at least two months' notice.
❖ Section 2: Definitions
❖ Adolescent:
✓ A person who has completed their 15th year but has not completed their 18th year.
❖ Adult:
✓ A person who has completed their 18th year.
❖ Child:
✓ A person who has not completed their 15th year.
❖ Day:
✓ A period of 24 hours beginning at midnight.
❖ Employer:
✓ Refers to the person who owns or has ultimate control over the affairs of a motor transport
undertaking.
✓ In cases where the affairs are managed by another person (e.g., manager, managing agent),
that person is deemed the employer.
❖ Motor Transport Service:
✓ A service provided to the public, directly or indirectly, using motor vehicles for carrying
passengers or goods, or both, for hire or reward.
❖ Motor Transport Undertaking:
✓ Includes any concern engaged in the motor transport service.
✓ This encompasses all related activities and facilities, such as maintenance, repair, storage,
and housing of motor vehicles.
❖ Motor Transport Worker:

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✓ A person employed in a motor transport undertaking directly or through an agency.

✓ Includes workers engaged in driving, repair, maintenance, booking, checking, loading,
unloading, or handling motor vehicles or goods carried by such vehicles.
✓ Excludes workers whose monthly wages exceed ₹750 and are employed in managerial,
supervisory, administrative, or office roles.
❖ Prescribed:
✓ Refers to rules made under the Act.
❖ Wages:
✓ Includes all remuneration paid or payable to a worker for their work under the terms of
employment.
✓ Excludes:
➢ Value of housing, water, medical facilities, and other amenities.
➢ Contributions to provident or pension funds.
➢ Travelling allowances or concessions.
Chapter II: Registration of Motor Transport Undertakings
❖ Section 3: Registration of Motor Transport Undertakings
✓ Mandates that every employer of a motor transport undertaking to which the Act applies must
register the undertaking under this Act within the prescribed period.
Chapter III: Inspecting Staff
❖ Section 4: Chief Inspector and Inspectors
✓ The State Government appoints a Chief Inspector and other inspectors to oversee the
implementation of the Act.
❖ Section 5: Powers of Inspectors
✓ Inspectors are empowered to enter premises, examine records, and ensure compliance with
the Act.
❖ Section 6: Facilities to be Afforded to Inspectors
✓ Employers must provide necessary facilities to inspectors for the effective discharge of their
duties.
❖ Section 7: Certifying Surgeons
✓ The State Government appoints certifying surgeons to examine workers and ensure their
fitness for employment.
Chapter IV: Welfare and Health
❖ Section 8: Canteens
✓ Employers must provide and maintain canteens in prescribed motor transport undertakings.
❖ Section 9: Rest Rooms
✓ Adequate rest rooms or shelters with drinking water facilities must be provided for motor
transport workers.
❖ Section 10: Uniforms

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✓ Employers are required to provide uniforms to motor transport workers where prescribed.
❖ Section 11: Medical Facilities
✓ Provision of medical facilities for motor transport workers at prescribed places is mandatory.
❖ Section 12: First-Aid Facilities
✓ Employers must provide and maintain first-aid boxes or cupboards equipped with prescribed
contents.
Chapter V: Hours and Limitations of Employment
❖ Section 13: Hours of Work for Adult Motor Transport Workers
✓ Limits the working hours for adult motor transport workers to 8 hours a day and 48 hours a
week.
❖ Section 14: Hours of Work for Adolescents Employed as Motor Transport Workers
✓ Specifies working hours for adolescent workers, ensuring they are not employed beyond
prescribed hours.
❖ Section 15: Daily Intervals for Rest
✓ Mandates rest intervals for workers during working hours to ensure their well-being.
❖ Section 16: Spread-Over
✓ Specifies that the work of an adult motor transport worker shall be so arranged that the period
of work inclusive of rest intervals does not spread over more than 12 hours in any day.
❖ Section 17: Split Duty
✓ Regulates the division of duty hours to prevent excessive strain on workers.
❖ Section 18: Notice of Hours of Work
✓ Employers must display notices specifying working hours and rest intervals in a prescribed
manner.
❖ Section 19: Weekly Rest
✓ Ensures that every motor transport worker is allowed a day of rest every week.
❖ Section 20: Compensatory Day of Rest
✓ Provides for a compensatory day of rest if a worker is deprived of the weekly rest day.
Chapter VI: Employment of Young Persons
❖ Section 21: Prohibition of Employment of Children
✓ Prohibits the employment of children below the age of 15 years in motor transport
undertakings.
❖ Section 22: Adolescents Employed as Motor Transport Workers to Carry Tokens
✓ Adolescent workers are required to carry tokens giving reference to the certificate of fitness
granted to them.
❖ Section 23: Certificate of Fitness
✓ Adolescents must obtain a certificate of fitness from a certifying surgeon to be eligible for
employment.
❖ Section 24: Power to Require Medical Examination

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✓ Empowers authorities to require medical examinations of workers to ensure fitness for duty.
Chapter VII: Wages and Leave
❖ Section 25: Application of the Payment of Wages Act, 1936
✓ The provisions of the Payment of Wages Act, 1936 apply to motor transport workers.
✓ Ensures timely and appropriate payment of wages to workers.
❖ Section 26: Extra Wages for Overtime
✓ Workers are entitled to extra wages for overtime work at twice their ordinary rate of wages.
❖ Section 27: Annual Leave with Wages
✓ Workers who have completed 240 days of work in a calendar year are entitled to annual leave.
✓ Leave entitlement:
➢ Adults: 1 day for every 20 days of work.
➢ Adolescents: 1 day for every 15 days of work.
✓ Accumulated leave can be carried forward to the following year, up to 30 days for adults and
40 days for adolescents.
❖ Section 28: Wages During Leave Period
✓ Workers are entitled to wages during their leave period at the average daily rate of their
earnings in the previous three months.
Chapter VIII: Health and Safety
❖ Section 29: Cleanliness
✓ Employers must ensure the cleanliness of workplaces, including premises, vehicles, and
restrooms.
❖ Section 30: Ventilation and Lighting
✓ Workplaces and restrooms must have proper ventilation, natural light, and artificial lighting.
❖ Section 31: Precautions Against Fire
✓ Employers must take prescribed precautions to prevent fire hazards in motor transport
undertakings.
❖ Section 32: Safety Measures
✓ Protective measures should be taken to safeguard workers from occupational hazards,
including dangerous machinery.
❖ Section 33: First Aid
✓ First-aid boxes with prescribed contents must be maintained and made accessible to
workers.
Chapter IX: Administration and Enforcement
❖ Section 34: Appointment of Inspecting Staff
✓ State Governments must appoint Inspectors and Chief Inspectors to ensure compliance with
the Act.
❖ Section 35: Powers of Inspectors
✓ Inspectors can:

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➢ Enter premises and inspect motor transport undertakings.

➢ Examine records, machinery, and workers.
➢ Seize records or evidence of non-compliance.
❖ Section 36: Certifying Surgeons
✓ Certifying surgeons appointed by the State Government must examine the fitness of workers
and enforce medical supervision rules.
Chapter X: Penalties and Procedures
❖ Section 37: Penalties for Offences
✓ Violations of provisions, such as failing to provide welfare measures or exceeding working
hours, are punishable with fines or imprisonment up to 3 months.
❖ Section 38: Enhanced Penalty for Repeat Offences
✓ If an employer repeats the offence, the penalty includes higher fines or longer imprisonment.
❖ Section 39: Cognizance of Offences
✓ Courts cannot take cognizance of offences under this Act unless the complaint is filed by an
Inspector or authorized personnel.
Chapter XI: Miscellaneous
❖ Section 40: Power to Exempt
✓ State Governments can exempt motor transport undertakings or workers from certain
provisions of the Act under specific circumstances.
❖ Section 41: Rule-Making Power
✓ The Central and State Governments have the power to make rules for implementing the
provisions of this Act.
Case 1: "Motor Transport Workers Union v. Employer" (1980)
❖ Issue: The union claimed that the employer had violated the working hours and overtime
provisions of the Act.
❖ Judgment: The court ruled in favor of the workers, stating that the employer must pay for overtime
worked by the employees as per the prescribed rates under the Act.
❖ Case 2: "XYZ Transport Company v. Motor Transport Workers" (1985)
❖ Issue: A dispute arose regarding the safety of workers and the provision of first-aid facilities.
❖ Judgment: The court directed the company to provide the required first-aid facilities and ensure
the workers’ safety, in line with the provisions of the Act.

Multiple choice Questions

1. The Motor Transport Workers Act, 1961, applies to motor transport undertakings employing a
minimum of:

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A. 2 workers
B. 5 workers
C. 10 workers
D. 20 workers
Answer: B. 5 workers

2. Under the Act, who is responsible for appointing Inspectors to ensure compliance?
A. Central Government
B. State Government
C. District Magistrate
D. Labour Union
Answer: B. State Government

3. What is the maximum number of working hours allowed per day for adult motor transport
workers?
A. 8 hours
B. 9 hours
C. 10 hours
D. 12 hours
Answer: B. 9 hours

4. Under Section 27, how many days of annual leave is an adult worker entitled to for every 20
days of work?
A. 1 day
B. 2 days
C. 3 days
D. 4 days
Answer: A. 1 day

5. What rate of wages is payable for overtime work under the Act?
A. 1.5 times the normal rate
B. 2 times the normal rate
C. Same as the normal rate
D. 1.25 times the normal rate
Answer: B. 2 times the normal rate

6. Which section of the Act mandates the provision of first-aid facilities in motor transport
undertakings?

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A. Section 12
B. Section 29
C. Section 33
D. Section 34
Answer: C. Section 33

7. What is the penalty for the first offence under The Motor Transport Workers Act, 1961?
A. ₹500 fine
B. ₹1,000 fine
C. Imprisonment up to 3 months or fine up to ₹500, or both
D. Imprisonment up to 6 months or fine up to ₹1,000, or both
Answer: C. Imprisonment up to 3 months or fine up to ₹500, or both

8. Which section of the Act provides for rest rooms or shelters for motor transport workers?
A. Section 8
B. Section 9
C. Section 10
D. Section 11
Answer: B. Section 9

9. Who is responsible for issuing certificates of fitness to adolescent motor transport workers?
A. Chief Inspector
B. Employer
C. Certifying Surgeon
D. Labour Welfare Officer
Answer: C. Certifying Surgeon

10. What is the spread-over period within which the work of a motor transport worker, including
rest intervals, must be completed in a day?
A. 8 hours
B. 9 hours
C. 12 hours
D. 15 hours
Answer: C. 12 hours

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PAYMENT OF GRATUITY ACT, 1972

We all must have heard the term ‘gratuity’ which means “a sum of money that is paid to an employee
at the end of the service.” In simple terms, a Gratuity is a form of ‘Gratitude’ paid by the employer to
his employee for his/her services and commitment towards company.
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.
❖ So, in order to be eligible for the payment of gratuity, the minimum term of employment must be
5 years. In India, this is all governed by Payment of Gratuity Act, 1972
❖ It is a social security enactment providing for the welfare benefits of the employees working in
industries, companies and organisations. The Act has been amended in 2018 (The Payment of
Gratuity (Amendment) Act, 2018).
Applicability of the Act
1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10
or more persons are employed at any time during the year end.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.
4. Once Act applies, it continues to apply even if employment strength falls below 10.
The Act doesn’t apply to central or state government employees and other employees covered by any
other act for Gratuity payment. The “Employee” under the Payment of Gratuity Act 1972 means any
person employed on wages for doing any type of work, including those hired in the managerial or
administrative capacity. The key consideration for gratuity payment is that the person should be
employed on wages. Those employed as apprentices are not eligible for gratuity.
Continuous Service
According to this Act, the continuous service means an uninterrupted service during the
employment period. An employee shall be said to be in continuous service even his/her service in
interrupted by way-
1. Sickness,
2. Accident,
3. Leave,
4. Abzence from duty without leave,
5. Leave with full wage,
6. Temporary disablement,
7. Laid-off period,
1. Maternity leave: 26 weeks (The Payment of Gratuity (Amendment) Act, 2018), whether such
uninterrupted or interrupted service was rendered before or after the commencement of this Act.
In case of period of one year
Employee will be treated as he in continuous service, if he is employed by employer for the period of
❖ 190 days employment under the ground in mines, or in establishment which works less than 6
days in a week.

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❖ 240 days in case of other any establishments (factories, companies, etc.)

In case of period of 6 months
❖ Employee will be treated as he in continuous service, if he is employed by employer for the period
of
❖ 95 days employment under the ground in mines, or in establishment which works less than 6
days in a week.
❖ 120 days in case of other any establishments (factories, companies, etc.)
In case of seasonal establishments
❖ An employee of a seasonal establishment shall be deemed to be in continuous service if he has
actually worked for not less than 75% of the numbers of days on which the establishment was
in operation during the 1 year or 6 months.
❖ Seasonal Establishments in which, although work is carried on throughout the year, the number
of employees is regularly subject to seasonal fluctuations for reasons associated with the
weather, their sales or their location. For example, hotels and restaurants in health spas and
holiday resorts, gravel and sand pits and stone quarries are deemed to be seasonal
establishments.
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
Gratuity shall be payable to an employee on the termination of his employment after he has rendered
continuous service for not less than 5years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease :
The completion of continuous service of 5 years shall not be necessary where the termination of
the employment of any employee is due to death or disablement:
❖ A retired person is also entitled to gratuity amount along with his pension.
❖ 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.

Calculation of gratuity
[Sec 4 (2)]
Gratuity = Monthly salary x 15/26 x Number of years of service
❖ Monthly salary= last month drawn salary by the employee.
❖ 26 = total number of working days in a month.

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❖ 15 = number of days in half of the month.

Example for monthly salaried employees
❖ Gratuity = (Basic + DA) x 15/26 x number of years.
❖ Example: If an employee had joined a job on 01-08-2004 and retired or got his job terminated on
30-04-2018, with last drawn basic Salary of Rs 30,000 and DA of Rs 13000, his Gratuity will be:
❖ (Rs 30,000+Rs 13000) x 15/26 x 14 = Rs 3,47,307.70/-
❖ Note: Here the employee has completed 14 years of service. The seven months of his first year
(August 2005 to March 2006) is to be counted as one year as it is more than six months of service.
Gratuity = Number of years * last drawn salary *15/26
❖ For instance, if XYZ has been employed by a company for 20 years and received Rs. 25,000 as his
most recent basic plus DA amount,
❖ For XYZ, the gratuity amount is equal to 20 * 25,000 * 15/26, or Rs. 2,88,461.54.
Example for seasonal employees
❖ In the case of seasonal employees, 7 days wages for each season of service completed by the
employee is considered for calculation. Rest of the formula is same as monthly-rated employees.
❖ For example: If a seasonal employee retires after working from 2006 to 2016, working one season
each year, with Rs 11000 Basic and Rs 7000 DA, his gratuity will be
❖ (Rs 11000+7000) ×7/26 × 11 = Rs 53,307.70/-
Note: Here the employee has worked for one season every year. Hence, the total season is 11
❖ 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.
Gratuity in case of death of an employee

Service tenure of the employee Gratuity payable upon the death

> a year 2 * basis salary of the employee

More than or equal to 1 year but less than 5 6 * basis salary of the employee
years

More than or equal to 5 years but less than 12 * basis salary of the employee
11 years

More than or equal to 11 years but less than 20 * basis salary of the employee
20 years

More than or equal to 20 years For each full six-month term, half of the base
salary. It is limited to a maximum of 33 times
the basic salary, though.

Maximum limit for gratuity payable

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❖ According to the Payment of Gratuity (Amendment Act, 2018) the maximum amount of gratuity
payable to an employee has been extended to Rs. 20 Lakhs against the earlier limt of Rs. 10 Lakh
which was set in 2010.
❖ Nothing in this section shall affect the right of an employee to receive better terms of gratuity
under any award or agreement or contract with the employer.
Deduction of gratuity
[Sec 4(6) (a)]
The gratuity of an employee, whose services have been terminated for any act, wilful omission or
negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall
be forfeited to the extent of the damage or loss so caused.
[Sec 4(6) (b)] the gratuity payable to an employee [may be wholly or partially forfeited]
❖ If the services of such employee have been terminated for his riotous or disorderly conduct or
any other act of violence on his part, or
❖ if the services of such employee have been terminated for any act which constitutes an offence
involving moral turpitude, provided that such offence is committed by him in the course of his
employment.
Payment of gratuity is not applicable to employee who has been dismissed from the service for the
reason of indiscipline or misconduct.
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

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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.
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 under the Payment of Gratuity Act

OFFENCE PENALTY

To avoid any payment, if someone makes Punishable with imprisonment for 6 months or a
a false representation or false statement fine up to Rs. 10,000 or both.

Failure to comply with the provisions of Punishable by a minimum of 3 months, which

this Act may extend up to 1 year, or a fine of Rs. 10,000,
which may extend up to Rs. 20,000.

Non-payment of gratuity under the Act will The employer shall be punishable with
lead to an offence imprisonment for at least 6 months, which may
extend up to 2 years unless the court provides a
sufficient reason for less payment.

The Payment of Gratuity (Amendment) Act, 2018

Key Amendments
❖ The amendment has side tracked the ceiling limit of the maximum amount of gratuity payable i.e
Rs.10 lakh set in 2010. This upper cap prescribed by Section 4(3) of the Act, has been removed.
❖ Section 4(5) of the Act prescribes that if the terms of employment contract provide for a higher
amount of gratuity over and above the ceiling limit stated in the Act, then the employee will be
entitled to such higher amount. This transition has been introduced for the implementation of
the 7th Central Pay Commission, whereby the ceiling of gratuity for Central Government
employees has been enhanced from Rs. 10 lakhs to Rs. 20 lakhs.
❖ Instead of mentioning and specifying the ceiling amount in Act, the amendment empowers the
Central Government to notify the ceiling proposed so that the limit can be revised from time to
time keeping in view the increase in wage and inflation, and future Pay Commissions.

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❖ Introduced in relation to the period of maternity leave. The period of maternity leave for females
in continuous service was twelve weeks under section 2A of the earlier Act. The amendment has
modified the maternity leave period from 'twelve weeks' to 'twenty-six weeks 'in order to keep the
Act in tune with the recently amended Maternity Benefit Act. This also resolves calculation of
continuous service for the payment of gratuity to employees who are on maternity leave.
What are the gratuity rules?
Following are the gratuity rules in India:
1. Gratuity is payable by a company that has 10 or more employees on a single day in the previous
12 months. Even if the number of employees reduces to below 10, the company will be liable to
pay the gratuity as per the Act.
2. Gratuity is payable only if employees serve the company for at least 5 yrs. However, this condition
doesn’t apply in situations like the employee’s death or disablement.
3. Calculation of the gratuity is covered under the act.
4. Generally, gratuity is paid after retirement. However, there are exceptions to this rule:
a) Employees can ask for gratuity while switching jobs, provided they have completed 5 yrs of
service in the company
b) On the passing of an employee while in service, an employer has to pay the gratuity to the
nominee or legal heir
c) If an employee becomes disabled due to a disease or an accident, they are entitled to gratuity
d) Employees opting for VRS are entitled to get gratuity
e) An employee terminated can claim gratuity but not in case of discontinuation, theft, fraud,
rape, assault or molestation
5. Gratuity paid to an employee’s legal heir or widow is exempted from tax.
6. Gratuity of up to Rs. 20 lakh paid by the organisation under the Payment of Gratuity Act, 1972, is
exempt from tax. The gratuity paid under central, state, and local governments are exempt from
tax as per Gratuity Rules 2021.
7. An employer is mandated to pay gratuity to their employees even when the company is under
bankruptcy.
8. If a nominee is a minor, an Assistant Labour Commissioner will invest the gratuity in a term
deposit offered by a nationalised bank on their behalf in their name.
Gratuity payment rules in India
1. An eligible employee should apply for gratuity within 30 days from the payable date. In case of
retirement or superannuation, they should apply before one month
2. An employer cannot reject an application submitted after 30 days if it was for a valid reason
3. An employer must fill in the payment date and amount within 15 days of receiving the application.
Gratuity should be paid within 30 days of receiving the application
4. In case an employer rejects an application, they must mention the reason
5. An employer may request a witness or evidence if a nominee or a legal heir claims gratuity. They
will accept the claim from the date of producing the evidence
6. The modes of gratuity payment are cash, cheque or demand draft
Payment of Gratuity Act 1972 Rules for disputes

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An employee, legal heir or a nominee can file a complaint to the Assistant Labour Commissioner in
case:
❖ The gratuity payable is less than what an employee feels eligible to receive
❖ If an employer rejects the gratuity payment application
❖ An employee fails to pay the gratuity or specify the payable amount to an eligible claimant within
the prescribed time
Latest developments regarding gratuity
For private-sector employees, the ceiling tax exemption of gratuity amount has been raised to Rs. 20
lakh from Rs. 10 lakh. The same was implemented for central government employees after the
implementation of the 7th Central Pay Commission.
Income tax and gratuity
1. Gratuity received by public sector employees apart from statutory corporations is exempt from
tax.
2. For employees getting gratuity from an employer not covered under the Payment of Gratuity Act,
the least of the below is exempted from the tax:
✓ Rs. 10 lakh
✓ Actual gratuity got by an employee
✓ Half-month salary of every year that an employee has completed
1. For employees getting gratuity from an employer covered by the Payment of Gratuity Act, the
salary of 15 days as per the last drawn salary is exempt
Types of gratuity forms
1. Form I: to apply for gratuity payment
2. Form J: to be used by a nominee for gratuity payment application
3. Form K: to be used by a legal heir
4. Form F: to put in a nominee
5. Form G: to add in a fresh nominee
6. Form H: to modify the nomination
7. Form L: issued by the employer to the employee mentioning the date and the amount
8. Form M: issued by the employer to the employee mentioning the reason behind the rejection of
gratuity
9. Form N: used by an employee to send an application to the labour commission
10. Form O: issued by the concerned authority requesting an appearance for a case hearing
11. Form P: summons issued by the concerned authority to be present for the case hearing

Important questions
What is the Gratuity Act?
The Payment of Gratuity Act, 1972, governs gratuity payments in India. The act lays down the rules of
eligibility for companies and employees, calculation of gratuity, application of gratuity claim, and
more.

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What can you do if gratuity is not paid?

You can send a legal notice to your employer to pay the gratuity amount. If you still don’t receive it,
you can approach the labour commissioner’s office.

How to add a nominee for gratuity?

Employees are required to fill in Form F when joining a company. This will allow them to nominate
one or more heirs for the gratuity.

Can a company pay more than the permissible limit as gratuity in India?
Yes. A company can pay more gratuity under ex-gratia or bonus.

What is the penalty for a delay in gratuity in India?

In case of delay in the payment of gratuity, the employer has to pay simple interest on the amount
throughout the period of delay.

Can you get a gratuity if you are a contract employee in a company?

If you are a contract employee in a company, and the contract is separate from the entity, you are
eligible to receive gratuity from the contractor, not the company.

How is gratuity paid?

There are three modes of payment. Gratuity is paid in cash, cheque or demand draft.

Employees’ provident Funds and Miscellaneous provisions Act, 1952

❖ Employees’ Provident Fund is a statutory benefit payable to employees working in India. The
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 ("Act") is applicable pan-
India. The administration and management of Employees’ Provident Fund (EPF) is carried out by
the Central Board of Trustees (CBT) established by the Central Government consisting of
representatives of the Government, employers and employees respectively. The Employees’
Provident Fund Organization (EPFO) assists this Board in its activities.
❖ EPF is a welfare scheme brought into force to secure a better future for employees. It is a statutory
benefit available to the employees post retirement or when they leave the services. In case of
deceased employees, their dependents will be entitled for the benefits. Under the Employees’
Provident Fund Scheme (EPF Scheme) both employers and employees have to make their
contributions towards the Fund. Interest earned on the amount is credited to the member’s
Provident Fund Account (PF account) and is available to the employee at the time of retirement
or exit from employment as the case may be, provided certain conditions are fulfilled.
Types of schemes under the Act
1. Employees’ Provident Fund Scheme, 1952: Employees’ Provident Fund Scheme was set up under
the Act for the purpose of providing a post retirement benefit for the employees or a class of

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employees or their legal heirs in case of death, employed under an establishment to which this
Act applies.
2. Employees’ Pension Scheme, 1995: Employees’ Pension Scheme was framed under the Act for
the purpose of providing the superannuation pension, retiring pension or permanent total
disablement pension to the employees of any establishment or class of establishments to whom
this Act applies; and widow or widower’s pension, children pension or orphan pension payable
to the beneficiaries of such employees.
3. Employees’ Deposit-linked Insurance Scheme, 1976: Employees’ Deposit-linked Insurance
Scheme (EDLI Scheme) was framed under the Act for the purpose of providing insurance benefits
to the employees of an establishment or a class of establishments to whom this Act applies in
case of death while in service.
Application of the Act
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
❖ Every establishment in which 20 or more are employed.
❖ Every establishment which is engaged in any one or more of the industries specified in Schedule
I of the Act or
❖ Any establishment notified by the central government.
Any establishment to which the Act applies shall continue to be governed by the Act even if the
number of persons employed therein at any time falls below
Eligibility to be the member of EPF
Enrolment for PF membership is mandatory for:
1. Any person employed for wages for any work of an establishment either manual or otherwise.
2. Any person employed through a contractor or engaged as an apprentice but not being an
apprentice under Apprentices Act, 1961.
3. Any person under the standing orders of an establishment, earning less than or equal to Rs.
15,000 per month other than the excluded and exempted employees under Section 17 of the Act.
Definitions
“basic wages”-
❖ “basic wages” means all emoluments which are earned by an employee while on duty or on leave
or on holidays with wages in either case in accordance with the terms of the contract of
employment and which are paid or payable in cash to him, but does not include-
a) The cash value of any food concession;
b) Any dearness allowance that is to say, all cash payments by whatever name called paid to an
employee on account of a rise in the cost of living, house-rent allowance, overtime
allowance, bonus, commission or any other similar allowance payable to the employee in
respect of his employment or of work done in such employment;
c) Any presents made by the employer;
Schemes under EPF
Employees provident fund scheme 1952
EPF is the main scheme under the Employees' Provident Funds and Miscellaneous Provisions Act,
1952. The scheme is managed under the aegis of Employees' Provident Fund Organisation (EPFO).

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Under EPF scheme, an employee has to pay a certain contribution towards the scheme and an equal
contribution is paid by the employer. The employee gets a lump sum amount including self and
employer's contribution with interest on both, on retirement.
❖ Employees drawing less than Rs 15000 per month have to mandatorily become members of
the EPF.
❖ Employee whose 'pay' is more than Rs 15,000 a month at the time of joining, is not eligible and
is called non-eligible employee.
However, an employee who is drawing 'pay' above prescribed limit (currently Rs 15,000) can become
a member with permission of Assistant PF Commissioner, if he and his employer agree.
Contribution by employer and employee
❖ The contribution paid by the employer is 12% of basic wages plus dearness allowance plus
retaining allowance.
❖ An equal contribution is payable by the employee also.
❖ In the case of establishments which employ less than 20 employees or meet certain other
conditions as notified by the EPFO, the contribution rate for both employee and the employer is
limited to 10 percent.
❖ For most employees of the private sector, it's the basic salary on which the contribution is
calculated. For example, if the monthly basic salary is Rs 30,000, the employee contribution
towards his or her EPF would be Rs 3,600 a month (12 percent of basic pay) while the equal
amount is contributed by the employer each month.
❖ It should, however, be noted that not all of the employer's share moves into the EPF kitty. Out of
employer's contribution, 8.33% will be diverted to Employees' Pension Scheme, but it is
calculated on Rs 15,000.
Higher voluntary contribution by employee or Voluntary Provident Fund
❖ The employee can voluntarily pay higher contribution above the statutory rate of 12 percent of
basic pay. This is called contribution towards Voluntary Provident Fund (VPF) which is accounted
for separately. This VPF also earns tax-free interest. However, the employer does not have to
match such voluntary contribution.
Withdrawals from the EPF account
❖ According to the EPF Act, for claiming final PF settlement, one has to retire from service after
attaining 55 years of age. The total EPF balance includes the employee's contribution and that of
the employer, along with the accrued interest.
Partially withdraw
❖ A person is eligible to withdraw money in advance from their PF Account for purposes like
marriage, education, medical treatment etc, subject to the prescribed conditions. Note that the
said advance is totally tax-free and interest-free.
❖ There is, however, a window to partially withdraw the amount for those nearing retirement.
Anyone over 54 can withdraw up to 90 percent of the accumulated balance with interest.
❖ With effect from December 6, 2018, the employees can withdraw 75 per cent of their EPF corpus
after remaining unemployed for one month and balance 25% he is out of employment for 60
straight days or more.
Interest on account

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❖ The interest rate for every month is 8.15%, 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)
Employee’s pension scheme, 1995
❖ This scheme can help employees with long years of service receive a modest but guaranteed
pension throughout their retired life. All organised sector employees in India who are enrolled
with the Employees Provident Fund Organisation (EPFO) automatically become members of the
Employees’ Pension Scheme (EPS) as well.
❖ While Employees contribution of 12% goes entirely into the EPF account which gives you a lump
sum on retirement, 8.33% of your employer’s contribution goes into the EPS to fund your pension
payouts post-retirement. The government also adds 1.16% of your pay to the EPS kitty every
month.
❖ The maximum pay on which the EPS to accept employers’ is ₹15,000 per month. It is capped at
₹1,250 per month (8.33% of ₹15,000).
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.
Administration
❖ 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
❖ The Fund shall vest in, and be administered by, the Central Board constituted under section 5A.
Central board is created by official gazette notification given by the Central government.
Functions
❖ 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.
❖ 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 15)
❖ Representing the employer of the establishment (10 people)

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❖ Representing the employee of the establishment (10 people)

Executive committee: Section 5AA
Executive Committee to assist the Central Board in the performance of its functions. The Executive
Committee shall consist of the following persons as members, namely:-
❖ A Chairman appointed by the Central Government from amongst the members of the Central
Board:
❖ Two persons appointed by the Central Government from amongst the persons referred to in
clause b of sub-section 1 of section 5A;
❖ Three persons appointed by the Central Government from amongst the persons referred to in
clause c of sub-section 1 of section 5A;
❖ Three persons representing the employers elected by the Central Board from amongst the
persons referred to in clause d of sub- section 1 of section 5A;
❖ Three persons representing the employees elected by the Central Board from amongst the
persons referred to in clause e of sub- section 1 of section 5A;
❖ The Central Provident Fund Commissioner, ex-officio.
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.
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:
Appointment of officers.
1. The Central Government shall appoint a Central Provident Fund Commissioner who shall be
the chief executive officer of the Central Board and shall be subject to the general control and
superintendence of that Board.
2. The Central Government may also appoint a Financial Adviser and Chief Accounts Officer to
assist the Central Provident Fund Commissioner in the discharge of his duties.
3. The Central Board may appoint, subject to the maximum scale of pay, as may be specified in the
Scheme, as many Additional Central Provident Fund Commissioners, Deputy Provident Fund
Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund
Commissioners and such other officers and employees as it may consider necessary for the
efficient administration of the Scheme, the Pension Scheme and the Insurance Scheme.
4. No appointment to the post of the Central Provident Fund Commissioner or an Additional Central
Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other
post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group

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„A‟ or Group „B‟ post under the Central Government shall be made except after consultation with
the Union Public Service Commission:
EMPLOYEES’ PROVIDENT FUND ORGANIZATION
EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume
of financial transactions undertaken.
❖ Its a statutory body-. Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 and this
law extends to the whole of India.
❖ EPFO comes under the purview of the Ministry of Labour and Employment and came into being
in 1951.
Structure of EPFO
❖ The Act and all its Schemes are administered by a tripartite Board called Central Board of
Trustees (EPF). It has representatives of Government (both Central and State), Employers and
Employees.
❖ The Board is chaired by the Ministry of Labour and Employment, Government of India. The Central
Board of Trustees (EPF) operates 3 schemes:
❖ The Employees’ Provident Funds Scheme 1952 (EPF)-Accumulation plus interest upon
retirement, resignation , death.
❖ The Employees’ Pension Scheme 1995 (EPS)-Monthly benefits for superannuation/ retirement,
disability, survivor, widow (er), children.
❖ The Employees’ Deposit Linked Insurance Scheme 1976 (EDLI)-The benefit provided in case of
death of an employee who was a member of the scheme at the time of the death.
❖ As on date, the Act extends to 187 classes of establishments. Any establishment falling in any of
the 187 categories mentioned above and employing more than 19 persons automatically comes
under the purview of the EPF & MP Act 1952.
Functions Of EPFO
❖ EPFO performs the dual role of being the administration and overseeing the implementation of
the Act and also as a service provider for the covered beneficiaries which includes both
employers and employees i.e., members.
❖ EPFO assists the Central Board of Trustees (EPF) in the administration of Provident Fund Scheme,
a Pension Scheme and an Insurance Scheme for the registered establishments in India and
includes employees of such establishments and international workers who are covered.
❖ EPFO’s functioning includes enforcement of the Act across the country, maintenance of
individual accounts, settlement of claims, investment of funds, ensuring prompt pension
payment and updating records etc.
❖ EPF Organization is also the nodal agency for implementing Bilateral Social Security Agreements
with other countries.

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

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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
❖ 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.
Withdrawals from EPF account
1. The funds from an EPF account can be withdrawn completely in full settlements on attaining 58
years of age or at the time of retirement the employee can claim for a complete settlement or if
an employee remains unemployed for a period of 2 months or more or in the case of death while
in service before attaining the age of retirement, in which case the nominees or legal heirs are
entitled to withdraw the accumulated fund.
2. The partial withdrawal of funds from the EPF is available for educational opportunity, medical
treatment, repayment of home loan, marriage, purchase of land/house/flat, in case the
establishment/factory is closed, natural calamity, an year before retirement and unemployment
for a period of more than one month.
Benefits
The employees covered under the various schemes of the Act are entitled for the following
benefits
1. Employees can take advances or make withdrawals*.
2. PF amount of a deceased member is payable to the nominees or legal heirs.
3. The employer not only contributes towards the PF but also makes the necessary contributions
towards the employee’s pension which can be used by the employee post-retirement
4. Under the EDLI Scheme employees are properly insured in order to avail the lump sum benefit at
the time of death while in service.
5. EEE (Exempt, Exempt, Exempt) tax benefit under the Income Tax Act enables tax-free returns for
the employees.
6. Employees receive special benefits in the form of added income to their savings in the form of
interest.
7. PF account can be transferrable if any member changes employment from one establishment to
another where such Provident Fund scheme is applicable.

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DEFAULT IN PAYMENT OF DUES BY EMPLOYER – CONSEQUENCES

S. No. Section/Rule Subject Provisions

1 Section 7Q of Interest The employer shall be liable to pay SI @ 12% PA or

[EPF & MP Act such other rate as may be specified
1952] -on amount due for contribution
-from the date on which the amount has
become so due till date of its actual payment.

2 Rule 32A of Rate of Damages Period of Default Rate of Damages (%

Employees’ charged by the of arrears per annum)
Provident Commissioner or
Funds any officer on his
Scheme, behalf Less than 2 months 5%
1952
2 months & above but 10%
less than 4 months

4 months & above but 15%

less than 6 months

6 months & above 25%

3 Section 8Bof Recovery of (a) Attachment and Saleof the moveable or

EPF & MP Act Arrears by immovable property of the
1952 Recovery Officer -establishment; or
-the Employer;
Provided that the attachment and sale of any
property shall first be against the properties of the
establishment and if it is insufficient, the Recovery
Officer may recover against the property of the
employer.
(b) Arrest of the employer and his detention in
prison;
“Employer” means-
(i) In case of factory, the owner or occupier of
the factory, including the agent of such owner or
occupier, and where a person has been named
as a manager of the factory and
(ii) In relation to any other establishment, the
person who is ultimate control and where the
said affairs are entrusted to a manager, managing
directing or managing agent, such manager,
managing director or managing agent;]

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4 Section 8E of Other modes of 1. Realisation of dues from Debtors.

EPF & MP Act Recovery 2. Attachment of Bank Account
1952
3. He may apply to the court in whose custody
there is money belonging to the employer for
payment to him of the entire amount sufficient to
discharge the amount due.

5 Section Penalties for Imprisonment for a term which may extend to

14(1A) of EPF default in making three years but which shall not be less than one
& MP Act the contribution year and a fine of ten thousand rupees.
1952 as specified Provided that the Court may, for any adequate
under Section 6 and special reasons to be recorded in the
of EPF & MP Act judgement, impose a sentence of imprisonment
1952 for a lesser term.

6 Section 14(2) General Penalties (1) Any person who contravenes or makes default
& (2A) of EPF in complying with, any of the provisions thereof
& MP Act shall be punishable with imprisonment for a term
1952 which may extend to one year, or with fine which
may extend to four thousand rupees, or with
both.
(2) Whoever, contravenes or makes default in
complying with any provision of this Act shall, if no
other penalty is elsewhere provided be
punishable with imprisonment which may extend
to 6 months, but which shall not be less than
one month, and shall be liable to fine which may
extend to five thousand rupees.

7 Section 14AB Arrest without An offence relating to default in payment of

of EPF & MP warrant contribution by the employer punishable under
Act 1952 this Act shall be cognizable.

8 Section 14B Power to recover Where an employer makes default in the

of EPF & MP damages payment of contribution the Central Provident
Act 1952 Fund Commissioner or such other officer in his
behalf may recover from the employer by way of
penalty such damages, not exceeding the
amount of arrears but reasonable opportunity
of being heard shall be given.

9 Section 110 Execution of In case of default in compliance of this Act (in

Criminal sureties Bond addition to other Acts)magistrate may require
Procedure such person to show cause why he should not be
Code 1973 ordered to execute a bond, with sureties, for his
good behaviour for such period, not exceeding
three years, as the Magistrate thinks fit.

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Employees State Insurance Act 1948

Employer and employee contributions are used to fund the ESI Scheme. The employer's contribution
is 4.75 percent of the earnings paid to employees. Employees are required to contribute 1.75 percent
of their gross compensation.
❖ The Employees State Insurance Act 1948 by the Parliament was the first major social security
legislation for workers in India.
❖ The ESI Act 1948 covers certain health-related incidents the workers are exposed to, such as
maternity, sickness, permanent or temporary disablement, or death due to employment injury,
which can result in the loss of earning capacity.
❖ The Employees State Insurance Act 1948 functions under the Ministry of Labour & Employment.

What is ESI?
❖ Employees State Insurance is a self-financed comprehensive social security scheme that comes
under Employees State Insurance Act 1948. The Ministry of Labour & Employment is responsible
for the functioning of this Act.
❖ Social security provisions made in the ESI Act 1948 protect the employees against financial
distress arising out of events of disablement, sickness, or death due to employment injury.
❖ Employees State Insurance provides cash compensation for the above cases.
❖ Employees’ State Insurance Corporation (ESIC) administers Employees State Insurance Act
1948.
❖ Employees’ State Insurance Corporation (ESIC) is a statutory corporate body that is established
under the employee’s state insurance act in India.
❖ The Employees' State Insurance Act, 1948, is a social security plan offered by the Indian
government. Employees are covered under the plan if they become disabled or die as a result of
work-related injuries, illnesses, or maternity leave. Employees must enroll in the plan in order to
receive medical treatment and other benefits. The financial aid provided by the scheme may be
used to compensate employees for lost wages due to illness.
❖ This is a self-financing program in which employees and employers contribute a certain
percentage of their wages to the scheme on a monthly basis.
Constitutionality of the Act
❖ The ESI Act serves as a constitutional instrument because of its practice of providing insurance
and medical insurance. While the ESI Act is mostly executed through the ESI Corporation, the
Central Government takes control of most of the proceedings.
❖ This control by the Central Government largely contributes to the constitutionality of the Act,
because Insurance, be it public or private, is listed in the Seventh Schedule of the Indian
Constitution as a Union List subject i.e. it can only be legislated by the Central Government.

Application and scope of the Act

The Employees' State Insurance Act (ESI) of 1948 provides financial support and assistance to the
working class in times of medical difficulty, such as:

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❖ Parental Leave
❖ Disturbances (mental or physical).
❖ Disability.
❖ Death.
❖ It is a self-funded project that acts as a form of social security program to protect the working
class from financial hardships caused by the medical conditions mentioned above.
❖ The Act applies to non-seasonal factories employing 10 or more people under Section 2(12).
❖ The Scheme has been extended to stores, hotels, restaurants, theatres including preview
theatres, road-motor-transport operations, and newspaper establishments that employ 10* or
more people under Section 1(5) of the Act.
❖ The Scheme has also been extended to private medical and educational institutions employing
10* or more people in specified States/UTs under section 1(5) of the Act.
❖ In Maharashtra and Chandigarh, however, the bar for establishment coverage remains at 20
employees. The current monthly pay ceiling for coverage under the Act is Rs.21,000 (as of January
1, 2017).
❖ ESI applies to any entity that employs ten or more people, such as non-manufacturing stores,
hotels, and restaurants, cinemas, road motor vehicle establishments, newspaper
establishments, and private educational and medical institutes.
❖ The ESI Scheme is now operational in 526 districts throughout 34 states and union territories,
including 346 complete districts, 95 district headquarters, and 85 districts. The plan is in place
in the centers. Arunachal Pradesh and Lakshadweep have yet to adopt the plan.
Seasonal factory
❖ Seasonal factory means a factory which is exclusively engaged in one or more of the following
manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of
ground- nuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) or tea or any
manufacturing process which is incidental to or connected with any of the aforesaid processes
and includes a factory which is engaged for a period not exceeding seven months in a year —
a) In any process of blending, packing or repacking of tea or coffee ; or
b) In such other manufacturing process as the central government may, by notification in the
official Gazette, specify ;
Eligibility
❖ To be eligible for the ESI scheme, the employee or the worker's monthly salary should not exceed
Rs. 21,000 and Rs. 25,000 for people with disability
Finance
❖ ESI Scheme, like most of the Social Security Schemes the world over, is a self financing health
insurance scheme. Contributions are raised from covered employees and their employers as a
fixed percentage of wages. The State Governments, as per provisions of the Act, contribute 1/8th
of the expenditure of medical benefit within a per capita ceiling of Rs. 1500/- per Insured Person
per annum. Any additional expenditure incurred by the State Governments, over and above the
ceiling and not falling within the shareable pool, is borne by the State Governments concerned.
Benefits

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Employees are entitled to benefits under Section 46 of the ESI Act as social security in the event of
injury while on the job. There are six different sorts of advantages available:
❖ Medical benefit.
❖ Sickness benefit
❖ Maternity benefit
❖ Dependents’ benefits.
❖ Disability benefits
❖ Additional benefits.
Medical Benefits
❖ These benefits are guaranteed to employees as soon as they are hired, and they also apply to
their family members. This benefit pays for any treatment costs incurred by the employee as a
result of medical difficulties.
❖ From the first day of insurable employment, an insured person and his family receive full medical
treatment. There is no limit on how much an insured person or a family member can spend on
treatment. On payment of a nominal annual premium of Rs.120/-, medical care is also provided
to retired and permanently disabled covered persons and their spouses.
Sickness Benefits
❖ Section 46(1)(a) of the ESI Act allows covered employees to receive periodic payments in the
event of sickness, as long as the medical condition is validated by an authorized medical
practitioner.
❖ The compensation is roughly 70% of their salaries, with a maximum of 91 days of compensation
each year. The employee must have worked for a minimum of 78 days over a 6-month term of
employment to be eligible for the benefit.
❖ Extended Sickness Benefit (ESB): In the case of 34 malignant and long-term conditions, SB can
be extended for up to two years at an enhanced rate of 80% of salaries.
❖ Enhanced Sickness Benefit: Insured persons undergoing sterilisation for 7 days/14 days for male
and female workers receive an Enhanced Sickness Benefit equal to their full earnings.
Benefits of Maternity
An insured woman can receive periodical payments under Section 46(1)(b) of the ESI Act if any of the
following scenarios occur:
❖ Confinement (in this case, means labour which results in the birth of a living child. It can also
mean birth after 26 weeks of pregnancy, whether the child is living or not.)
❖ Pregnancy-related illness
❖ Childbirth complications
The benefit is payable for three months, with a one-month extension available if needed. In the year
preceding the pregnancy, a minimum of 70 days of employment must be completed.
ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case
of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.

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MB Act ESI Act

Leave 26 weeks 26 weeks

Remuneration Average daily wages for the period of actual Average daily wages
absence, which is the average of the wages obtained by dividing the
payable to the woman for the days on which total wages paid during the
she has worked during the period of three contribution period by the
months immediately preceding the date from number of days for which
which she absents herself on account of these wages were paid,
maternity or Rupees 10, whichever is higher. rounded to the next higher
rupee or 25 Rupees,
whichever is higher.

Additional (i) Medical Bonus – 3,500 Rupees if no pre- Confinement Expense –

Benefits natal confinement and post-natal care is 5,000 Rupees to insured
provided for by the employer free of woman, provided that the
charge; confinement occurs at a
(ii) Nursing Breaks; Crèche Facilities; and place where necessary
(iii) Four visits a day to the crèche, including medical facilities under the
the interval for rest. ESI Scheme are not
available, subject to a
maximum of two
confinements.

Agreement or Section 27 of the MB Act provides that where

contract of under any award, agreement, contract of
Service to service or otherwise, a woman is entitled to
override in benefits in respect of any matter which are
certain more favourable to her than those which she
circumstances would be entitled under the MB Act, the
woman shall continue to be entitled to the
more favourable benefits than those
provided by the MB Act.

Option to Choose Coverage under the MB Act and not the ESI Act
❖ Section 61 of ESI Act provides that when a person is entitled to any of the benefits provided by
the ESI Act, then such a person is not entitled to receive any similar benefits admissible under
the provisions of any other enactment. Therefore, it becomes clear that a woman employee does
not have the right/option to choose to be covered under the MB Act, when the ESI Act is
applicable to her.
Right to Claim Additional Benefits under MB Act or MB Amendment Act
❖ In view of the above, legally, the employers are not mandated to extend the additional benefits
(specified under the MB Act and/or MB Amendment Act) to women employees who are covered

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under the ESI Act and eligible to avail the benefits under the ESI Act. However, an employer, at its
own volition, has the option to provide certain benefits as provided by the MB Act such as crèche
facility and nursing breaks, etc.
Dependents’ Benefits
❖ Section 46(1)(d) provides for recurrent compensation (typically provided monthly) to the
dependants/family members of someone who dies while working, with the cause of death being
an employment injury or occupational hazard. Compensation is usually 90% of the employee's
salary.
Disability Benefits
❖ In the event that an employee is disabled as a result of an injury sustained while on the job. The
disability may be transitory or permanent in nature. The disablement benefit, unlike the other
benefits, does not require a minimum work contribution, albeit eligibility will be evaluated by the
Medical Board.
❖ This decision has an impact on the amount of compensation awarded, if any, with the average
percentage of wages awarded being about 90%.
❖ TDB (temporary disablement benefit): From the first day of insurable employment, regardless of
whether or not any contributions have been paid, in the event of an employment injury. For as
long as the disability lasts, a 90 percent of wage Temporary Disablement Benefit is paid.
❖ PDB (permanent disability benefit): The benefit is provided in monthly instalments at a rate of
90% of wage, depending on the level of loss of earning capacity as determined by a Medical
Board.
Other Benefits
Other benefits relate to non-essential benefits that employees can receive in addition to the five
primary perks. The following are some examples:
❖ Funeral Expenses: The eldest surviving member of an employee's family gets compensated
Rs.10,000 to execute his dying rites.
❖ Vocational Rehabilitation: This benefit is for disabled workers who are undergoing rehabilitation.
❖ Old age medical care: This benefit is accessible to retired employees or those who have left their
jobs due to an injury, with a general compensation of Rs. 120 per month.
❖ Confinement Expenses: An insured woman or an I.P. in respect of his wife if confinement occurs
in a location where requisite medical facilities are not accessible under the ESI Scheme.
❖ Physical Rehabilitation: In the event of a physical disability caused by an occupational harm.
❖ Rajiv Gandhi Shramik Kalyan Yojana: This unemployment allowance plan began on April 1, 2005.
An insured person who becomes unemployed after three years of coverage due to
factory/establishment closure, retrenchment, or permanent invalidity is entitled to the following
benefits: o Unemployment Allowance equal to 50% of wage for a maximum of two years.
Medical care from ESI Hospitals/Dispensaries for self and family throughout the time IP is receiving
jobless benefits.
Vocational Training is provided to upgrade skills - ESIC pays for the fees and travel allowance.
❖ Incentives for firms in the private sector to hire people with disabilities on a regular basis:
❖ For Physically Disabled Persons, the minimum wage ceiling for ESIC benefits is Rs 25,000/-.
❖ The Central Government pays the employers' contribution for three years.

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Contribution
❖ Because the E.S.I. Scheme is contributory in character, all employees in the factories or
enterprises to which the Act applies must be insured in accordance with the Act's provisions. In
the case of an employee, the contribution payable to the Corporation will be made up of an
employer contribution and an employee contribution at a certain rate. The rates are updated on
a regular basis.
❖ The rate of contribution has been reduced from 6.5 per cent to 4 per cent of the wages. The
employers’ contribution is being reduced from 4.75 per cent to 3.25 per cent and employees’
contribution being reduced from 1.75 per cent to 0.75 per cent effective from 01.07.2019.
Collection of Contribution
An employer is responsible for paying his contribution for each employee and deducting employee
contributions from wages bills, and must pay these contributions to the Corporation at the above
stipulated rates within 15 days of the last day of the calendar month in which the contributions are
due. The Corporation has authorized specified State Bank of India and other institutions to accept
payments on its behalf.
Employees earning daily average wage up to Rs.176 are exempted from ESIC contribution. The
employer makes the contribution from his own share in favour of those employees.
Contribution Period and Benefit Period
There are two six-month contribution periods and two six-month benefit periods, as shown below.
Contribution period Corresponding Cash Benefit period

Contribution Period Cash Benefit Period

1st April to 30th Sept. 1st Jan of the following year to 30th June

1st Oct to 31st March of the year following. 1st July to 31st December.

In the first case, the Principal employer must contribute.

❖ The primary employer has to collectively pay the contribution, both his own and that of his
employees, regardless of whether they are directly employed under him or are working through
an immediate employer.
❖ If a directly employed employee fails to pay his contributions, the employer can only recover that
contribution by deducting the employee's wages.
❖ The primary employer bears all payment to the Corporation transfer costs, both his own and
those of his employees, regardless of whether they are directly employed under him or working
through an immediate employer.
Contribution reimbursement from the immediate employer
❖ The principal employer has the right to collect the payment made on behalf of an indirect
employee from the immediate employer as a debt owing to him in the case of an employee who
is indirectly employed under the principal employer via an immediate employer.
❖ Before paying his dues, the immediate employer must also prepare a list of all the employees
under him and submit it to the primary employer.
Contribution payment provisions in general

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In the event that an employee's wage falls below the Central Government's stipulated wage range,
the employee is not accountable for his contribution and it is not payable.
Method of payment of contributions
The Act's payment regulations have been specified under the following conditions:
❖ The type and timing of the contribution.
❖ Payment involving the application of stamps or other adhesives to books of accounts or other
documents.
❖ The contribution evidence that reaches the Corporation must be dated.
❖ The various entries in the books of accounts, as well as the insured persons' information.
❖ Replacing papers that have been misplaced, damaged, or disfigured.
Social Security Officers and their functions
ESIC has the power to appoint persons as Social Security Officers. Their functions are mostly to serve
a role in inspecting the function of the corporation.
If required, he can acquire any information from any employer as he sees fit.
He can enter any corporation at any time and can get all the accounts, books and other
employment documents presented to him without any due notice. This can include information like
wages, expenses, etc.
He can inspect and look into any matter regarding the employers and employees as and when
required under the jurisdiction of the court.
He can make copies or take extracts from any register or account back as per his discretion.
❖ Eligibility
✓ Employees covered under Section 2(9) of the Employee’s State Insurance (ESI) Act 1948.
✓ The Insured Person should have been in insurable employment for a minimum period of two
years.
✓ The Insured Person should have contributed not less than 78 days during each of the
preceding four contribution periods.
✓ The contribution in respect of him should have been paid or payable by the employer.
✓ The contingency of the unemployment should not have been as a result of any punishment
for misconduct or superannuation or voluntary retirement.
Establishment of Employees’ State Insurance Corporation
❖ The ESI Act exercises its function through the Employees’ State Insurance Corporation,
established via Section 3, a body created to maintain social security. It was established on 24
February, 1952. The corporation is supposed to grant relief to the employees in case of medical
emergencies.
❖ Constitution of Corporation
❖ The composition of the ESIC is defined in Section 4, and it is as follows:
❖ The Director-General.
❖ Chairman, appointed by the Central Government.
❖ Vice-Chairman appointed by the Central Government.

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❖ Not more than 5 persons nominated by the Central Government.

❖ 1 person to represent each state.
❖ 1 person representing the Union Territories.
❖ 10 persons representing employers.
❖ 10 persons representing employees.
❖ 2 persons representing the medical profession.
❖ 3 members of parliament (2: Lok Sabha and 1: Rajya Sabha).
Term of office of members of the Corporation
❖ Via Section 5, the following members are appointed for up to a 4 year period:
✓ Director-General.
✓ Chairman.
✓ Vice-Chairman.
✓ The 5 people nominated by Central Government.
✓ The members representing each state.
✓ The members representing each Union Territory.
Eligibility for re-appointment or re-election
❖ An outgoing member of ESIC, the Standing Committee of ESIC, or the Medical Benefit Council is
automatically eligible for re-appointment or re-election into office as the case may be, at the
pleasure of the appointing Central Government.
❖ Authentication of orders, decisions, etc.
❖ The signature of the Director-General of ESIC is the only necessary requirement to authenticate
an outgoing order or a decision, there is no other way to authenticate or enforce an order.
❖ The Director-General can also temporarily delegate his authority to any other officer. In this case,
the signature of the authorised officer will also suffice to authenticate an order.
Constitution of Standing Committee
The composition of the Standing Committee of ESIC is as follows:
❖ A chairman appointed by Central Government.
❖ 3 members within the corporation representing 3 state governments.
❖ 3 members within the corporation representing employers.
❖ 3 members within the corporation representing employees.
❖ 1 member within the corporation representing the medical profession.
❖ One MP belonging to the corporation.
❖ The Director-General.
Terms of office of members of Standing Committee
❖ The following members are appointed for a two year period:
❖ The Chairman.
❖ The 3 members representing the states.
Medical Benefit Council

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The Medical Benefit Council is an advisory council that advises on medical benefit management
under the ESI plan.
❖ The Director-General of ESIC, who serves as Chairman.
❖ As co-Chairman, the Director-General of Health Services.
❖ ESIC's Medical Commissioner.
❖ Each state has one member appointed by the state government.
❖ Employers are represented by three members, while employees are represented by three
members.
❖ Three members, one of them is a woman from the medical field.
Members of the Medical Benefit Council's tenure
The members of the Medical Benefit Council listed below have been appointed for a four-year term:
❖ ESIC's Director-General as Chairman.
❖ As co-Chairman, the Director-General of Health Services.
❖ ESIC's Medical Commissioner; and one member nominated by each state's government.
Resignation of membership
❖ The resignation of a member of the Corporation is complete when a notice for the same, in
writing, is delivered to the Central Government, and his seat shall fall vacant upon acceptance
of his resignation.
Cessation of Membership
❖ A member of the ESIC shall cease to be a member of his respective body (Corporation, Standing
Committee or Medical Council) upon failing to attend three consecutive meetings. However, the
same member can be restored by the concerned body via the rules made by the Central
Government.
❖ If in the opinion of the Central Government, any employer, employee or medical representative
fails to represent their qualification, they shall cease to be members of ESIC.
Disqualification
A person can be disqualified as a member of ESIC if:
❖ If he is declared to be of unsound mind by a qualified court.
❖ If he is an undischarged insolvent.
❖ If at any time, he has been convicted of an offence regarding moral turpitude.
Filling of vacancies
❖ Any vacancy in the office of ESIC shall be filled by appointment or election, as the case may be.
❖ A member of ESIC can only hold the ex-member’s spot in the respective committee, if the original
holder of that position was found to be eligible for the same. Otherwise, the position is void.
❖ Fees and allowances
❖ The fees which are payable to the members of the ESIC for their services can be payable at any
time, at the discretion of the Central Government. There is no definitive schedule.
Principal Officers

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❖ The Principal Officers referred to under this Section are the Director-General and/or Financial
Commissioner, to act as the CEO for ESIC.
❖ They serve as whole-time officers and are not permitted to undertake any work outside of office
jurisdiction without the sanction of the Central Government.
❖ The time period for the appointment of any principal officer may not exceed 5 years.
❖ The operation of their fees, disqualification, and cessation of seats operate in the same manner
as that of their subordinates.
Staff
❖ ESIC has the jurisdiction to employ staff of officers as may be necessary for the optimum running
of the corporation, however, according to the prerequisites in Section 17, the sanction for
creating any staff position has to be acquired from the Central Government. Their salary shall be
prescribed by the Central government within a particular range, which cannot be exceeded.
❖ The scale of pay will be determined on the basis of their educational qualifications, method of
recruitment, duties, and responsibilities, etc.
Resignation of membership
❖ A member of the Corporation's resignation is complete when a written notice of resignation is
delivered to the Central Government, and his seat will become empty upon acceptance of his
resignation.
Cessation of Membership
❖ If a member of the ESIC misses three consecutive meetings, he or she will be removed from his
or her relevant body (Corporation, Standing Committee, or Medical Council). However, under the
guidelines established by the Central Government, the same member can be restored by the
concerned authority.
❖ Any employer, employee, or medical representative who, in the judgment of the Central
Government, fails to represent their qualification will lose their ESIC membership.
Disqualification
❖ If a qualified judge declares him to be of unsound mind, he can be disqualified as an ESIC
member.
❖ If he is an unpaid insolvent;
❖ If he has ever been convicted of a crime involving moral turpitude.
Employees’ State Insurance Fund
❖ The Employees’ State Insurance Fund is the primary monetary source for the ESIC to perform its
functions. All contributions paid under this Act and all other money received on behalf of the
Corporation shall be paid into this fund to be held and administered by the Corporation.
❖ These could be in the form of grants, donations or gifts by the government.
Expenses of the fund
❖ The ESI Fund is responsible for maintaining the expenses of ESIC, which are as follows:
❖ Payment of benefits and provision of medical treatment and attendance to insured persons and
their families, if required.

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❖ Payment of fees and allowances to members of the Corporation, the Standing Committee and
the Medical Benefit Council, the Regional Boards, Local Committees and Regional and Local
Medical Benefit Councils.
❖ Payment of salaries, leave and joining time allowances, travelling and compensatory allowances,
gratuities and compassionate allowances, pensions, etc.
❖ Establishment and maintenance of hospitals, dispensaries, and other institutions and the
provision of medical and other ancillary services for the benefit of insured persons and their
families, if required.
❖ 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 their families, if required.
Administrative expenses
❖ Administrative expenses are termed so, those expenses which cover the costs of administration
of ESIC, prescribed by the Central Government.
❖ Budget etc. to be placed before Parliament
❖ The annual report, the audited accounts of the Corporation along with the report of the
Comptroller and Auditor-General of India, and the comments of the Corporation on such report
under section 34 and the budget, as finally adopted by the Corporation, shall be placed before
the Parliament.
Allowances and fees
❖ The fees that members of the ESIC must pay for their services can be paid at any moment at the
discretion of the Central Government. There is no set timeline in place.
Penalties
Punishments
All of the penalties for default stated in the ESI Act are covered under Sections 84, 85, and 85A.
❖ False Statement: Any individual caught raising the payment or benefit to avoid payment by
himself is suspected of lying. Punishable by up to six months in prison and/or a fine of not more
than Rs. 2000. Insured people who are convicted of this will be denied monetary benefits.
❖ Failure to pay contribution: Failure to pay the contribution, as well as improperly deducting
earnings or benefits, unfairly punishing an employee, obstructing inspector's responsibilities,
and so on, can result in a sentence of up to three years in prison and a fine of up to Rs. 10,000.
❖ Subsequent Punishment: If a person is found guilty of the same offence twice, he will be
sentenced to a maximum of two years in prison and a fine of Rs. 5000 for each subsequent
offence.
Power of Court to make orders
❖ It also provides measures for enforcing judicial orders, in addition to the court's ability to recover
damages. If the defaulting employer fails to satisfy the Court's payment deadlines, the employer
will be considered to have committed a new offence, punishable by imprisonment and/or fines.
Damages-recovery authority
❖ If an employer fails to pay contributions due in any way, whether on his own or on behalf of his
employees, the Corporation has the right to recoup the deficiency through a penalty.

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❖ This contribution recovery will not take place, however, until the person in charge has been given
a reasonable opportunity to be heard about the failure to pay the contribution.
Prosecution
❖ Section 86 of the ESI Act states that any prosecution must first acquire the approval of the
Insurance Commissioner or another authorized authority, such as the Corporation's Director-
General. Under the ESI Act, no court lower than a First Class Magistrate can try an offence, and
no court will take cognizance of any offence reported under the Act.
Offences by companies
❖ Taking cues from the concept of a commercial entity, where each firm is treated as an individual,
i.e., it is a separate legal entity that can sue or be sued in a court of law.
❖ As a result, when a corporation is accused of committing a crime, all of its managerial personnel
who were in charge of the company at the time will be tried alongside the company and found
guilty of the same crime. They will face the consequences as a result.
Exemptions
Sections 87, 88, 90, 91, and 91A of the Internal Revenue Code specify the conditions under which
certain benefit exclusions may be granted.
The suitable government (appropriate here meaning the government exercising more authority, in
closer vicinity) can exempt the following from the benefits of the ESI Act (if they were already receiving
those benefits) by a notification in the Official Gazette:
❖ Factory/establishment or a class of factories/establishments.
❖ Persons or classes of persons.
❖ Government-owned factories or establishments.
❖ Any of the aforementioned from a specific Act provision.
❖ Any of the above could be excused in the future for a set amount of time.
Wage Limit
Employees with a monthly income of less than Rs.21,000 are eligible for the scheme's benefits. To
summarize, employees who work for companies or establishments with 10 or more employees and
monthly earnings of up to Rs.21,000 are eligible for health benefits under the ESI Act.
In the case of daily average wages of Rs.137, there are exceptions to the rule. They are not required
to contribute from their earnings to the scheme. For such people, just the employer's payment is
paid.
Rajiv Gandhi Shramik Kalyan Yojana
❖ This scheme of Unemployment allowance was introduced w.e.f. 01-04-2005. An Insured Person
who become unemployed after being insured three or more years, due to closure of
factory/establishment, retrenchment or permanent invalidity are entitled to :-
✓ Unemployment Allowance equal to 50% of wage for a maximum period of upto Two Years.
✓ Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives
unemployment allowance.
✓ Vocational Training provided for upgrading skills - Expenditure on fee/travelling allowance
borne by ESIC.

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✓ Incentive to employers in the Private Sector for providing regular employment to the persons
with disability :
✓ Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is Rs 25,000/.
✓ Employerss' contribution is paid by the Central Government for 3 years.
Atal Beemit Vyakti Kalyan Yojana
❖ Atal Beemit Vyakti Kalyan Yojana is a welfare measure being implemented by the Employee’s
State Insurance (ESI) Corporation.
❖ It offers cash compensation to insured persons when they are rendered unemployed.
❖ The Scheme was introduced in 2018.
❖ The scheme provides relief to the extent of 25% of the average per day earning during the previous
four contribution periods (total earning during the four contribution period/730) to be paid up to
maximum 90 days of unemployment once in lifetime of the Insured Person.
❖ The claim for relief under the Atal Beemit Kalyaan Yojana will be payable after the three months
of his/her clear unemployment.
Key takeaways
❖ The ESI Act is a necessary utility for a working-class employee in India, as it benefits them while
also benefiting sectors outside of the working class.
❖ Apart from providing medical benefits to employees, the Employees' State Insurance Act also
regulates many other indirect aspects of effectively managing the Corporation established by the
Act, such as sales proceedings, account management, and power separation among its many
officers.
❖ Employees' State Insurance Corporation (ESIC) is a government agency in charge of
administering the Employees' State Insurance (ESI) program. Employees and their families are
provided with medical and financial help under the scheme.
❖ The minimum number of employees required to subscribe for ESI scheme varies with states,
such as Maharashtra, Meghalaya, Mizoram, Nagaland, Goa, Chandigarh, and Assam-20;
Jharkhand, Haryana, Karnataka, Rajasthan, Tripura, West Bengal, Andhra Pradesh, and Delhi-10.
Important Forms to be submitted under the Act
Form Number Description
| FORM Q(A) | Factory/Establishment Annual Information
| FORM 1 | Declaration Form
| FORM 1A | Family Declaration Form
| FORM 1B | Changes in Family Declaration Form & Return of Declaration Forms
| FORM 4(A) | Family Identity Card
| FORM 5 | Return of Contributions
| FORM 6 | Register of Employees
| FORM 8 | Special Intermediate Certificate
| FORM 10 | Absentee Verification in r/o Sickness Benefit/Temporary Disable
Benefit/MB
| FORM 12 | Sickness or Temporary Disablement Maternity Benefit for Sickness
| FORM 13 | Sickness or Temporary Disablement or Maternity Benefit for Sickness
| FORM 13A | Maternity Benefit for Sickness

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| FORM 14 | Sickness or Temporary Disablement or Maternity Benefit for Sickness

| FORM 14A | Maternity Benefit for Sickness
| FORM 16 | Accident Report from Employer
| FORM 17 | Dependent’s or Funeral Benefit (Death Certificate)
| FORM 18 | Dependent’s Benefit (Claim Form)
| FORM 18A | Dependent’s Benefit (Claim in Periodical Payments)
| FORM 19 | Maternity Benefit (Notice of Pregnancy)
| FORM 20 | Maternity Benefit (Certificate of Pregnancy)
| FORM 21 | Maternity Benefit (Certificate of Expected Confinement)
| FORM 22 | Claim for Maternity Benefit
| FORM 23 | Maternity Benefit (Certificate of Confinement or Miscarriage)
| FORM 24 | Maternity Benefit (Notice of Work)
| FORM 25 | Claim for Permanent Disablement Benefit
| FORM 26 | Certificate for Permanent Disablement Benefit

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THE EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT, 1959:

Section 1: Short Title, Extent, and Commencement
❖ Title: The Act is called The Employment Exchanges (Compulsory Notification of Vacancies) Act,
1959.
❖ Extent: Applicable to the whole of India, except Jammu & Kashmir (now fully applicable post-
2019 amendment).
❖ Commencement: The Act came into force on a date notified by the Central Government.
Section 2: Definitions
❖ Employment Exchange: Any office set up by the Government for assisting individuals to secure
employment.
❖ Establishment in Public Sector: An establishment wholly or substantially financed by the
Government or controlled by it.
❖ Vacancy: Includes openings in jobs but excludes:
✓ Casual employment.
✓ Work less than 3 months.
✓ Jobs connected with agriculture or domestic service.
Section 3: Act Not to Apply in Certain Cases
❖ The Act does not apply to:
✓ Vacancies with less than three months' duration.
✓ Vacancies for employment in agriculture or domestic services.
Section 4: Notification of Vacancies to Employment Exchanges
❖ Employers are required to:
✓ Notify all vacancies to the appropriate employment exchange.
✓ Ensure notification is done before filling the vacancies.
❖ Exceptions include vacancies outlined in Section 3.
Section 5: Employers to Furnish Information and Returns
❖ Employers must submit prescribed forms detailing:
✓ Information about vacancies.
✓ Employment-related returns as required.
❖ The forms must be submitted at specified intervals to the employment exchanges.
Section 6: Right of Access to Records or Documents
❖ Employment officers from exchanges have the right to:
✓ Access records and documents related to employment for inspection purposes.
Section 7: Penalties
❖ Penalties for non-compliance include:
✓ Fines for failure to notify vacancies.
✓ Additional fines for continuing offenses.

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Section 8: Protection of Action Taken in Good Faith

❖ Actions taken in good faith under the Act are protected against legal proceedings.
Section 9: Power to Make Rules
❖ The Central Government has the authority to:
✓ Frame rules to carry out the provisions of the Act.
✓ Prescribe forms, intervals for returns, and notification processes.
Section 10: Repeals and Savings
❖ The Act repeals any provisions inconsistent with it in earlier laws but saves actions already taken
under such laws.
The Cine Workers Welfare Fund Act, 1981
1. Short Title, Extent, and Commencement (Section 1)
❖ Title: The Cine Workers Welfare Fund Act, 1981.
❖ Extent: Applicable across India.
❖ Commencement: Effective from a date notified by the Central Government.
2. Definitions (Section 2)
❖ Cine Worker: A person employed in a cinematographic film for wages, excluding administrative
or managerial roles.
❖ Fund: Refers to the Cine Workers Welfare Fund established under the Act.
❖ Cinema: Any cinematographic production, including feature films and documentaries.
3. Establishment of the Cine Workers Welfare Fund (Section 3)
❖ The Central Government is empowered to establish a welfare fund.
❖ The fund aims to support cine workers and their dependents.
4. Contributions to the Fund (Section 4)
❖ Sources of contributions include:
✓ Central Government grants.
✓ Voluntary contributions from film producers and industry stakeholders.
✓ Other prescribed sources.
5. Application of the Fund (Section 5)
❖ The fund can be utilized for:
✓ Welfare measures for cine workers and their dependents.
✓ Medical care, educational assistance, housing, and recreational facilities.
✓ Any other purpose beneficial to cine workers as prescribed by the government.
6. Central Advisory Committee (Section 6)
❖ Establishment of a Central Advisory Committee to advise on the administration and use of the
fund.
❖ The composition, terms, and functions are defined by the government.
7. Constitution of Additional Advisory Committees (Section 7)

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❖ Additional committees may be formed to assist in specific regions or purposes.

❖ These committees ensure localized implementation of welfare measures.
8. Rule-Making Powers (Section 8)
❖ The Central Government has the power to frame rules for:
✓ Fund administration.
✓ Determining eligible beneficiaries.
✓ Implementation of welfare schemes.
9. Protection of Actions Taken in Good Faith (Section 9)
❖ Protects officials and committee members from legal proceedings for actions carried out in good
faith under the Act.
10. Repeal and Savings (Section 10)
❖ Repeals conflicting laws or provisions related to cine workers' welfare.
❖ Saves actions and decisions made under repealed laws.
The Building and Other Construction Workers’ Welfare Cess Act, 1996:
1. Short Title, Extent, and Commencement (Section 1)
❖ Title: The Building and Other Construction Workers’ Welfare Cess Act, 1996.
❖ Extent: Applicable across the whole of India.
❖ Commencement: Deemed to have come into force on November 3, 1995.
2. Definitions (Section 2)
❖ Board: Refers to the Building and Other Construction Workers’ Welfare Board constituted by a
State Government under the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996.
❖ Fund: The Building and Other Construction Workers’ Welfare Fund constituted by a Board.
❖ Prescribed: As defined by rules made under this Act.
❖ Other terms carry the same meanings as in the Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996.
3. Levy and Collection of Cess (Section 3)
❖ A cess is levied for the purposes of the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996, at a rate not exceeding 2% but not less than
1% of the cost of construction incurred by an employer, as specified by the Central Government.
❖ The cess is collected from every employer in the prescribed manner and time, which may include
deduction at source for government or public sector undertakings or advance collection through
local authorities where approval is required.
❖ The collected cess proceeds are paid to the Board after deducting collection costs, not
exceeding 1% of the amount collected.
❖ The cess may be collected at a uniform rate based on the quantum of building or construction
work involved, subject to final assessment.
4. Furnishing of Returns (Section 4)

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❖ Every employer must furnish returns to the designated officer or authority in the prescribed
manner and time.
❖ Failure to furnish returns allows the officer or authority to assess the cost of construction based
on available information and determine the cess due.
5. Assessment of Cess (Section 5)
❖ The officer or authority assesses the cess due after considering the furnished returns and any
other relevant information.
❖ The assessment order is communicated to the employer, specifying the amount payable.
6. Power to Exempt (Section 6)
❖ The Central Government may exempt any employer or class of employers from the cess payment
in public interest, subject to conditions and timeframes specified in the notification.
7. Power of Entry (Section 7)
❖ Designated officers have the authority to enter any premises where building or construction work
is being carried out to verify compliance with the Act's provisions.
8. Interest Payable on Delay in Payment of Cess (Section 8)
❖ Delayed cess payments attract interest at the prescribed rate from the due date until actual
payment.
9. Penalty for Non-Payment of Cess within the Specified Time (Section 9)
❖ Non-payment of cess within the specified time may result in a penalty not exceeding the amount
of cess due, in addition to the principal cess amount and interest.
10. Recovery of Amount Due under the Act (Section 10)
❖ Unpaid cess amounts, including interest and penalties, can be recovered as arrears of land
revenue.
11. Appeals (Section 11)
❖ Employers aggrieved by an assessment order can appeal to the designated appellate authority
within the prescribed time and manner.
❖ The appellate authority's decision is final.
12. Penalty (Section 12)
❖ Contravention of Act provisions or rules may result in penalties, including fines, as prescribed.
13. Offences by Companies (Section 13)
❖ In cases where an offence is committed by a company, individuals in charge of and responsible
for the company's conduct at the time are deemed guilty, unless they prove the offence occurred
without their knowledge or they exercised due diligence to prevent it.
❖ Directors, managers, secretaries, or other officers are also liable if the offence occurred with
their consent, connivance, or due to their neglect.
14. Power to Make Rules (Section 14)
❖ The Central Government is empowered to make rules for carrying out the Act's provisions.
15. Repeal and Saving (Section 15)
❖ Repeals any ordinance previously promulgated on the subject, with a saving clause for actions
taken under such ordinances.

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The Unorganised Workers’ Social Security Act, 2008

1. Short Title, Extent, and Commencement (Section 1)
❖ Title: The Unorganised Workers’ Social Security Act, 2008.
❖ Extent: Applicable across the whole of India.
❖ Commencement: Effective from May 16, 2009.
2. Definitions (Section 2)
❖ Employer: A person or association engaging unorganised workers for remuneration.
❖ Home-Based Worker: An individual producing goods or services from home for an employer.
❖ Self-Employed Worker: A person engaged in an unorganised sector occupation, not employed
by an employer, with earnings below a specified threshold.
❖ Unorganised Sector: Enterprises owned by individuals or self-employed workers with fewer than
ten workers.
❖ Unorganised Worker: Includes home-based, self-employed, or wage workers in the unorganised
sector, and those in the organised sector not covered by specified Acts.
3. Framing of Scheme (Section 3)
❖ The Central Government is to formulate and notify social security schemes for unorganised
workers, covering life and disability cover, health and maternity benefits, old age protection, and
other benefits as determined.
4. Funding of Central Government Schemes (Section 4)
❖ Funding for these schemes will be through budgetary allocations from the Central Government,
contributions from State Governments, and contributions from beneficiaries or employers as
specified.
5. National Social Security Board (Section 5)
❖ Establishment of a National Social Security Board to recommend suitable welfare schemes,
monitor their implementation, and advise the Central Government on related matters.
6. State Social Security Board (Section 6)
❖ State Governments are to constitute State Social Security Boards to recommend and monitor
welfare schemes at the state level and advise on related matters.
7. Funding of State Government Schemes (Section 7)
❖ State Governments will fund state-level schemes through their budgetary allocations, with
possible contributions from beneficiaries or employers as specified.
8. Record Keeping by District Administration (Section 8)
❖ District administrations are responsible for maintaining records of unorganised workers,
including registration and issuance of identity cards.
9. Workers Facilitation Centres (Section 9)
❖ Establishment of facilitation centres at the district and block levels to assist unorganised workers
with registration and accessing social security benefits.
10. Eligibility for Registration and Social Security Benefits (Section 10)
❖ Unorganised workers aged 14 and above, engaged in the unorganised sector, are eligible for
registration and social security benefits, subject to fulfilling prescribed conditions.

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11. Power of Central Government to Give Directions (Section 11)

❖ The Central Government may issue directions to State Governments for effective
implementation of the Act's provisions.
12. Vacancies, etc., Not to Invalidate Proceedings (Section 12)
❖ Vacancies or defects in the constitution of boards do not invalidate their proceedings, ensuring
continuity of functions.
13. Power to Make Rules by Central Government (Section 13)
❖ The Central Government is empowered to make rules for carrying out the provisions of the Act,
including the manner of registration, record-keeping, and other procedural aspects.
14. Power to Make Rules by State Government (Section 14)
❖ State Governments can frame rules for implementing the Act's provisions within their
jurisdictions, aligning with the Central Government's rules.
15. Laying of Rules (Section 15)
❖ Rules made under the Act by both Central and State Governments must be laid before their
respective legislatures, ensuring legislative oversight.
16. Saving of Certain Laws (Section 16)
❖ The Act does not override any existing laws providing benefits to unorganised workers, ensuring
that more beneficial provisions remain effective.
17. Power to Remove Difficulties (Section 17)
❖ The Central Government may make orders to remove any difficulties in implementing the Act,
provided such orders are made within two years from the commencement of the Act.
Schedules
❖ Schedule I: Lists the social security schemes for unorganised workers.
❖ Schedule II: Enumerates the Acts applicable to organised sector workers, distinguishing them
from unorganised workers under this Act.

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INDIA: CODE ON SOCIAL SECURITY, 2020

INTRODUCTION
❖ With the intent of simplifying and consolidating labour laws, the 2 ndNational Commission on
Labour recommended the rationalisation of existing labour laws into 4 to 5 groups. In pursuance
of the recommendation, the Code on Social Security, 2020 ("Social Security Code") received
the assent of the President on 28 September 2020.
❖ The Code aims to regulate the organised / unorganised (or any other) sectors and extend social
security benefits, during sickness, maternity, disablement, etc. to all employees and workers
across different organisations.
❖ The Code undertakes to integrate nine existing labour laws relating to social security into one
integrated Code.
LAWS SUBSUMED
SS Code has subsumed the following enactments:
1. The Employees’ Compensation Act, 1923;
2. The Employees’ State Insurance Act, 1948;
3. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952;
4. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959;
5. The Maternity Benefit Act, 1961;
6. The Payment of Gratuity Act, 1972;
7. The Cine- Workers Welfare Fund Act, 1981;
8. The Building and Other Construction Workers Welfare Cess Act, 1996; and
9. The Unorganised Workers’ Social Security Act, 2008.
COVERAGE AND APPLICABILITY
❖ The Code applies to everyone on wages in an establishment, irrespective of occupation.
❖ Earlier, under the Payment of Gratuity Act, 1972, the term "wages" included "all emolument
which is earned by an employee while on duty or leave in accordance with the terms and
conditions of his employment and which are paid or are 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".
❖ Under the Social Security Code, the term "wages" includes all kinds of remunerations capable of
being expressed in monetary terms including basic pay, dearness allowance, and retaining
allowance. However, it does not include any overtime compensation, house rent, conveyance
allowance, gratuity upon termination, or any retrenchment compensation.
❖ The Code shall have an overriding effect over anything inconsistent in any other law or the terms
of any award, agreement, or contract of service, whether it was made before or after this Code
came into force.
CODE ON SOCIAL SECURITY: STRUCTURE AND PROCEDURE

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❖ The Code deals with social security organisations, employees' compensation, provident fund,
gratuity, Employees' State Insurance Corporation, social security for construction workers,
unorganised workers, gig workers, and platform workers.
❖ Every establishment shall mandatorily obtain registration under this Code, including the
establishments already registered under any Central Act. Workers under different categories
shall be required to register under applicable Chapters in the Code. Further, any business in the
process of closure shall apply for registration cancellation under this Code.
❖ With the intent to increase the authenticity of the Code, any employee or worker employed in the
unorganised sector must establish their identity through aadhar numbers for seeking benefits
available under the Code.
❖ The Code has also included provisions for the establishment of several boards that would
administer and enforce different schemes, such as State Building Workers Welfare Boards,
National Social Security Board, State Unorganised Workers' Social Security Board, etc.
Key changes & Applicability under the Code

Existing Legislations Social Security Code

Registration of It is required across all the Every establishment to which the Code
establishment previous labour and applies has to register themselves via the
employment legislations. Shram Suvidha Portal.

Appeal to the The time limit of 6 (six) months Under the Code, the Tribunal needs to decide
Industrial is prescribed for the Tribunal tothe appeal within 1 (one) year from the date
Tribunal under decide the appeal from the date the appeal has been preferred and the fees
the of its registration and the fees for filing an appeal to tribunal has been
Employees' for filing an appeal to Tribunal is
raised to INR 5000 (Five Thousand). The
Provident INR 2000 (Indian Rupees Two percentage of deposition of sum which is due
Fund: Time Thousand). on part of the employer has been reduced
limit and Fees For an appeal to be raised by an from 75% (seventy five percent) to 25%
employer before the Tribunal, (twenty-five percent).
the percentage of deposition of
sum which is due on part of the
employer is 75% (seventy five
percent).

Limitation There is no time period Limitation period of 5 (five) years has been
Period prescribed for initiating the prescribed under the Code to initiate
proceedings in terms of proceedings in terms of determining any
determining any dues from an dues from an employer and dispute regarding
employer and dispute regarding the applicability to an establishment under
the applicability to an the EPF and the ESIC.
establishment under
the Employees' Provident
Fund ("EPF") and the

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Employees State Insurance

Corporation ("ESIC").

Fixed Term The definition of the term 'fixed Under the Code, the definition of the term
Employment term employment' has not been 'fixed term employment' has been
defined in the labour law introduced which means the engagement of
legislations. an employee on the basis of a written
contract of employment for a fixed period.
Furthermore, the hours of work, wages,
allowances, and other benefits shall not be
less than that of a permanent employee and
such benefits shall be proportionate to the
period of service rendered by such
employee.

Consolidated the definition of the term The term 'wages' means all remuneration
definition of 'wages' is different in different paid in way of salary and allowances and
the term labour law legislations. includes 'basic pay', 'dearness allowance'
'Wages' and 'retaining allowance' (if any). It excludes
components such as bonus, value of house
accommodation or electricity, water or
medical attendance, provident fund
contribution, conveyance allowance, house
rent allowance, overtime allowance etc.
It is significant to note that the excluded
components cannot exceed one half, or such
other percent as notified by the Central
Government, of all the remuneration payable
to the employee. In the event, such amount
exceeds one half, or such percent as
prescribed by the Central Government, the
same shall be considered as 'wages’.
Another proviso has been added in the
definition to provide that in the event, an
employee is given any remuneration in kind
by the employer, the value of such
remuneration in kind not exceeding 15%
(fifteen percent) of the total wages, shall be
deemed to form part of the wages payable to
such employee.

Employment The Employees Compensation Under the Code, the Employee's

Compensation Act, 1923, is applicable to a Compensation is applicable to the
certain class of employers for employers and employees to whom ESIC
payment of compensation to does not apply.

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their employees for injury by Furthermore, the Code has made a more
accident. distinctive division and it defines
Furthermore, disablement is disablement under 3 (three) heads i.e.,
defined under 2 (two) heads i.e., permanent partial disablement,
partial disablement and total permanent total disablement, and
disablement. temporary disablement.

Employees' Every factory and other Every establishment with 20 or more

Provident establishment employing 20 or employees.
Fund more employees.

Employees' Applicable to all factories Every establishment with 10 or more

State (including factories belonging to employees, other than seasonal employees.
Insurance the Government) in which 10 It shall also apply to establishment which
Corporation (ten) or more persons are conducts hazardous occupation.
employed or were employed on
any day of the preceding 12
(twelve) months, other than
seasonal factories.

Gratuity 1. Gratuity is not payable to 1. Gratuity is payable to an employee

an employee who is upon termination of the contract
employed on fixed term period under the fixed term
employment on pro rata employment .
basis or upon termination Further, completion of continuous
of the contract period under service of 5 (five) years is not necessary
the fixed term employment. wherein fixed term employment has
expired.
2. Further, the time period for Furthermore, employee employed on
making an application by fixed term employment will also be
the claimant employee, eligible for gratuity on pro rata basis
nominee or legal heir to the given by the employer.
competent authority for An employee on fixed term employment
issuing a direction is 90 is eligible for gratuity, if he renders
(ninety) days to in disputes service under the contract for a period of
pertaining to amount of 1 (one) year and he shall be paid gratuity
gratuity, admissibility of at the rate of 15 (fifteen) days' wages,
claim, person entitled to based on the rate of wages last drawn by
receive gratuity, etc. him, for every completed year of service
or part thereof in excess of 6 (six) months.
3. Moreover, the Central Permanent employees will be eligible for
Government has specified gratuity after five years of continuous
that the amount of gratuity service, ➢ Working journalists will be
payable to an employee eligible for gratuity after three years,
under the Payment of down from five years.
Gratuity Act, 1972, shall not 2. Under the Code, the time period for
making an application by the claimant

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exceed 20 (twenty) lakh employee, nominee or legal heir to the

rupees. competent authority for issuing a
direction has been increased to 180 (one
hundred and eighty) days in disputes
pertaining to amount of gratuity,
admissibility of claim, person entitled to
receive gratuity, etc.
3. Further, the threshold of the amount of
gratuity payable to an employee has not
been notified by the Central
Government yet, under the Code.

Voluntary The concept of voluntary opt in The concept of voluntary opt in and opt out of
Coverage of and opt out regarding the social security schemes has been
EPF and ESIC applicability of EPF and ESIC introduced under the Code. In case of opt in
does not exist. or opt out of the applicability of EPF, an
application needs to be made to the
Central Provident Fund Commissioner by
the employer of the establishment and there
should be an agreement between the
employer and the majority of employees as
regards the same.
In case of opt in or opt out of the
applicability of ESIC, an application needs
to be made to the Director General of the
Corporation by the employer of the
establishment and there should be an
agreement between the employer and the
majority of employees regarding the same.

Social security The Central Government has Under the Code, every unorganised worker,
for formulated welfare schemes in gig worker or platform worker who has
unorganised relation to the unorganised completed 16 (sixteen) years of age has to
workers, gig workers in matters pertaining to be registered, with Aadhar, on self-
workers and life and disability cover, health declaration basis in the form on the Shram
platform and maternity benefits, old age Suvidha Portal.
workers protection, etc. Furthermore, Provided that such worker has been engaged
for registration purposes, every as gig worker or platform worker, for not less
unorganised worker shall have than 90 (ninety) days during the preceding
completed 14 (fourteen) years 12 (twelve) months. Further, the Central
of age. Government will be formulating suitable
welfare schemes for gig workers and
platform workers on matters pertaining to life
and disability cover, accident insurance,
health and maternity benefits, old age
protection, creche, etc.

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Maternity No concept of common creche a common creche facility has been

Benefit facility being availed by an introduced wherein, any establishment may
establishment. avail such common creche facility of the
Central Government, State Government,
municipality, or private entity or provided by
non-Governmental organisation or by any
other organisation or group of
establishments who may pool their
resources for setting up of common crèche.

Maternity Every establishment including Applicable to every establishment including

Benefit mine, factory, and plantation, Government institutions.
and to every establishment It shall apply to every shop or establishment
wherein persons are employed which employs or employed 10 or more
for the exhibition of equestrian, employees in the preceding 12 months.
acrobatic, and other
performances.

Concept of Both the "principal employer" The arrangement between the principal
"principal and the "immediate employer (including a contractor) and an
employer" and employer" are covered under immediate employer has been reformed
"immediate the Employees' State Insurance under the respective heads i.e., "employer"
employer" Act, 1948. As per the provisions and "contractor" (including a sub-
removed of the Employees' State contractor).
Insurance Act, 1948, the
establishment or factory's
principal employer may hire
employees through an
immediate employer, who
would then carry out the work of
the factory or establishment
under the supervision of the
principal employer.

Employment The role of employment Under the Code, the concept of 'career
Opportunities exchange is limited which is to centre' has been introduced which includes
collect and furnish any office (including employment exchange,
information by maintaining place, or portal) established and maintained
registers in relation to persons for providing career services (including
who seek to engage employees, registration, collection and furnishing of
persons who seek employment, information, either by the keeping of registers
and vacancies to which persons or otherwise, manually, digitally, virtually or
seeking employment may be through any other mode). Further, the role of
appointed. career centre has been broadened which

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also includes providing career counselling,

vocational guidance, guidance to start self-
employment, organizing job-fairs and job
drives, conducting employment related
surveys and studies, enhance employment
opportunities, etc.

V. EMPLOYEES' STATE INSURANCE

EMPLOYEES’ STATE INSURANCE CORPORATION (‘ESIC’)
❖ Applicability: The provisions relating to ESIC are applicable to:
✓ Every establishment in which 10 or more persons are employed other than a seasonal
factory.
✓ Establishment which carries on hazardous or life-threatening occupation as notified by the
Central Government, in which even a single employee is employed.
✓ Employer of plantation who has opted for application of ESIC.
❖ Employees State Insurance Fund:
✓ Contributions, user charges and other moneys shall be paid into a fund.
✓ Grants, donations, Corporate Social Responsibility Fund and gifts from the Central
Government, State Government, local authority or any individual or body whether
incorporated or not.
❖ Purpose of Fund: Fund shall be used for the following purposes:
✓ Payment of benefits and provision of medical treatment and attendance;
✓ Payment of fees and allowances to members of Corporation and Committees;
✓ Payment of salaries, leave and joining time allowances, travelling and compensatory
allowances, gratuities etc.
❖ Insured Persons: Every employee in an establishment shall be insured, whether electronically
or otherwise, as may be prescribed by the Central Government.
❖ Contribution:
✓ The contribution payable in respect of an employee shall comprise contribution payable by
the employer and employee.
✓ The contribution shall be paid to the Corporation by the employer.
✓ Employer shall recover the employee’s contribution from the employee by reduction from
wages.
❖ Failure to pay contribution by employer:
✓ Corporation may pay the benefit to the employee and recover the capitalised value of the
benefit paid to the employee from the employer.
GRATUITY
❖ Applicability: The provisions relating to gratuity are applicable to:
1. Every factory, mine, oilfield, plantation, port and railway company; and

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2. Every shop or establishment in which 10 or more employees are employed, or were

employed, on any day of the preceding twelve months; and such shops or establishments as
may be notified by the appropriate Government from time to time.
❖ Eligibility period for payment of gratuity:
✓ Gratuity is payable to an employee on termination of employment after continuous service
of 5 years.
✓ For working journalist, gratuity is payable on termination of employment after continuous
service of 3 years.
✓ Completion of continuous service of 5 years shall not be essential where the termination of
employment of any employee is due to (a) death or (b) disablement or (c) expiration of fixed
term employment or (d) happening of any such event as notified by the Central Government.
✓ Gratuity at the rate of 15 days wages or such number of days as may be notified by the Central
Government, based on the rate of wages last drawn by the employee shall be payable for
every completed year of service or part thereof in excess of six months;
MATERNITY BENEFITS
❖ Maternity Benefits are benefits granted by a company to pregnant female employees before and
after childbirth for a set period of time. Maternity Benefit is now accessible in India under
The Code on Social Security, 2020; previously, it was given under The Maternity Benefit Act, 1961.
Every woman is entitled to maternity benefits at the rate of the average daily income for the time
immediately preceding her delivery and any period immediately after that day.
The following are the Maternity Benefits available to a woman in India:
❖ Average Daily Wage
❖ Average Daily Wage refers to the average wage for the three months preceding the date of her
absence due to maternity.
❖ Prerequisite for Maternity Benefit
❖ The woman must have worked for at least 80 days in the 12 months before the date of her
expected birth in an enterprise from which she is claiming maternity benefit in order to be eligible
for it.
❖ Maximum Maternity Benefit Period
❖ The maximum duration for which maternity benefits are eligible is 26 weeks, with 8 weeks
preceding the projected date of her delivery and the remaining 18 weeks following the date of her
delivery. The maximum length for which a woman with two or more surviving children may get
maternity benefits is 12 weeks, of which 6 weeks must precede the date of her projected birth
and the remaining 6 weeks must follow the date of her delivery. When a woman dies while giving
birth, the maternity benefit is only accessible for the days leading up to and including the day of
her death.
❖ When a woman who has given birth dies after the date of her delivery, her employer is responsible
for the maternity benefit for the whole time for which she was eligible. If the child dies after birth,
the employer is liable for maternity benefits for the days leading up to and including the date of
the child’s death.
❖ Maternity Benefit Payment to Nominated Person/Legal Representative

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❖ Payment of maternity benefits in the event of a woman’s death shall be provided to the person
selected by the woman, and if no nomination has been made by the woman, it shall be made to
her legal representative.
❖ Adopting Mother
❖ When a woman adopts a child under the age of three months, she is eligible for maternity benefits
for a maximum of 12 weeks from the day the infant is given to the adoptive mother.
❖ Medical Benefit
❖ A woman who is eligible for maternity leave is also eligible for a medical bonus of Rs. 3500/- from
her company.
❖ Nursing Break
❖ A mother who returns to work after giving birth is entitled to two breastfeeding breaks until her
kid reaches the age of 15 months.
❖ Childcare Services
❖ A woman at an establishment with 50 or more employees is entitled to a creche facility for four
visits per day, which includes the rest periods permitted to her.
❖ Invocation of Authority
❖ If a woman is denied maternity benefits, she has 60 days from the date of transmission of the
deprivation order to submit an appeal to the appropriate body.
❖ Commissioning Mother
❖ A biological mother who utilizes her egg to make an embryo that is placed in another woman is
referred to as a commissioning mother. Maternity benefit is offered to the commissioning mother
for a maximum of 12 weeks from the moment the child is turned over to her. After giving birth, a
woman may work from home under terms agreed upon by the company and the woman.
❖ Inspector-Facilitator Authority
❖ After receiving a complaint from a woman or nominated person/legal representative that he/she
has been denied maternity benefit or any other amount which the employer is obligated to pay
under this code to the employee, the Inspector-cum-Facilitator may conduct an investigation
and, if satisfied, direct the employer to make payment and pass such order as he deems just and
proper. An aggrieved individual may file an appeal against the Inspector-cum-order Facilitator
within 30 days to the authority authorized by the competent government, and the order granted
by the prescribed authority is final.
Applicability: The provisions relating to maternity benefit are applicable to:
a) To every establishment being a factory, mine or plantation including any such establishment
belonging to Government; and
b) To every shop or establishment in which 10 or more employees are employed, or were employed,
on any day of the preceding twelve months; and such other shops or establishments notified by
the appropriate Government.
Benefits:
❖ Woman shall not work in any establishment during the six weeks immediately following the day
of her delivery, miscarriage or medical termination of pregnancy;
❖ Woman shall be entitled to the payment of maternity benefit at the rate of the average daily wage
for the period of her actual absence;

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❖ Woman shall be entitled to maternity benefit of maximum 26 weeks of which not more than 8
weeks shall precede the expected day of delivery;
❖ Woman shall be entitled to receive a medical bonus of Rs. 3,500/- or such amount as notified by
the Central Government from the employer, if no pre-natal confinement or post-natal care is
provided for by the employer free of charge.
❖ Woman shall be allowed 2 breaks of such duration as may be prescribed by the Central
Government, for nursing the child until the child attains the age of 15 months.
❖ The establishment in which 50 employees or such number of employees as may be prescribed
by the Central Government, are employed shall have the facility of crèche within such distance
as may be prescribed by the Central Government, either separately or along with common
facilities.
EMPLOYEE COMPENSATION
Applicability: The provisions relating to employee’s compensation are applicable to the employers
and employees to whom Chapter IV (ESIC) does not apply. It is subject to the list of employees
mentioned in the Second Schedule
❖ Workers are entitled to compensation from the employer for cases involving fatal accidents,
bodily injury, or death during the work
❖ Accidents or occupational hazards for which employees are liable, have been listed out in the
third schedule of the
❖ The amount of compensation provided is equal to 50% of the deceased employee's monthly
wages which is multiplied to relevant
❖ For employees with permanent total disablement or 60% of the monthly wages of the injured
employee multiplied by relevant factors which is determined by the Central
BUILDING AND OTHER CONSTRUCTION WORKERS
Applicability: Every establishment which falls under the building and other construction work. The
term, ‘building or other construction work’ has been defined in the SS Code.
Cess:
❖ Cess shall be levied and collected for social security and welfare of building workers at the rate
not exceeding 2% but not less than 1% of the cost of construction incurred by the employer, as
notified by the Central Government.
❖ Cess shall be collected from every employer undertaking building or other construction work.
❖ Employer shall be liable to pay interest on the amount of cess not paid by the employer, for the
period from the date on which payment is due till the amount is actually paid, at the rate as
prescribed by the Central Government.
❖ The Government may, by notification, exempt any employer or class of employers in a State from
the payment of cess, where such cess is already levied and payable under any corresponding law
in force in that State.
❖ The employer shall, within 60 days or such period as may be notified by the Central Government
of the completion of building and construction work, pay cess on the basis of his self-
assessment, on the cost of construction.

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UNORGANISED, GIGS AND PLATFORM WORKERS

The terms, ‘Unorganised Workers’, ‘Gig Workers’ and ‘Platform Workers’ have been defined in the SS
Code.

Gig workers A person who performs work or participates in a work arrangement and
earns from such activities outside of traditional employer-employee
relationship

Platform Those who access organisations or individuals through an online platform

Workers and provide services or solve specific problems.

An Works in the unorganised sector, and includes workers not covered by the
unorganised Industrial Disputes Act, 1947, or other provisions of the Bill (such as
worker provident fund or gratuity). It also includes self-employed workers.

❖ Schemes: The Central Government and State Government shall frame welfare schemes for such
workers.
❖ Fund for Schemes: The schemes may be funded by the Central Government or State
Government or beneficiaries of the Scheme or employers or from corporate social responsibility
fund maintained under Companies Act, 2013 or the aggregators. The contribution by aggregators
shall be at the rate not exceeding 2% but not less than 1% of the annual turnover of aggregator
specified in the Seventh Schedule. The rate shall be notified by the Central Government.
ESIC: The Central Government may frame ESIC scheme for unorganized workers.
❖ The Code has distinguished itself from the Unorganised Workers Social Security Act, 2008
("UWSSA") by creating a distinction between 'unorganised workers', 'gigs', and 'platform workers'.
To that end, the Code elaborates on the framing of schemes which includes 'education' for
unorganised workers and 'creche' for gigs and platform workers under its coverage, unlike the
UWSSA.
❖ Such schemes may be 'wholly' or 'partially' funded by the State Government and other sources,
including corporate social responsibility funds. Proper records of the Schemes under this
Chapter shall be maintained by the authority notified by the appropriate Government. To be
eligible under the Code, a worker must satisfy two requirements: (a) completion of 16 years of
age; and (b) submit a self-declaration certificate in the manner prescribed by the Central
Government. Additionally, the State Government may provide a helpline facility for unorganised
workers, gigs, and platform workers to assist them in registration and avail information relating to
the social security schemes.
NATIONAL SOCIAL SECURITY FOR GIG WORKERS AND PLATFORM WORKERS
National Social Security Board may also act as the Board for the purposes of welfare of gig workers
and platform workers and can recommend and monitor schemes for gig workers and platform
workers.
The Board will comprise of a different set of members including:
(i) Five representatives of aggregators, nominated by the central government,
(ii) Five representatives of gig workers and platform workers, nominated by the central government,
(iii) Director general of the esic, and
(iv) Five representatives of state governments.

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COMBINATION OF CONTRIBUTIONS FROM THE CENTRAL GOVERNMENT, STATE

GOVERNMENTS, AND AGGREGATORS.
These mention categories including ride sharing services, food and grocery delivery services,
content and media services, and e- marketplaces.
❖ Any contribution from such an aggregator may be at a rate notified by the government falling
between 1-2% of the annual turnover of the aggregators.
❖ However, such contribution cannot exceed 5% of the amount paid or payable by an aggregator
to gig workers and platform workers.
The term 'aggregator' means a digital intermediary or a marketplace for a buyer or user of a service
to connect with the seller or the service provider.
Education is introduced as one of the suitable welfare schemes for unorganized workers to be
framed by the Central Government.
The list of aggregators under the Code on Social Security is specified in which schedule 7
COMPLIANCES UNDER THE CODE
❖ File returns for such period as prescribed by the appropriate Government.
❖ Maintain records and registers containing information regarding persons employed, finance and
accounts in a uniform manner, muster roll, wages, and such other particulars and details.
LIABILITY OF EMPLOYERS
❖ The Code states that the employer shall not reduce an employee's wages or the total amount of
benefits to which he is entitled because of his obligation to pay any contributions required under
this Code. Further, the employer shall be liable to pay simple interest on the amount due under
this Code from the due date till the date of payment at a rate as may be notified by the Central
Government from time to time.
❖ The Code also states that when an employer transfers his establishment by sale, gift, lease,
licence, or in any other way, the employer, and the transferee will be jointly and severally liable to
pay the amount due for any liabilities, cess, or any other amounts payable under this Code till the
date of such transfer. However, the liability of the transferee shall be limited to the value of the
assets obtained by him through such transfer.
REPORTING OF VACANCIES TO CAREER CENTRES
❖ Under the Code, for filling up any vacancies, the establishments will be required to report such
vacancies to career centres, from such date as specified in the notification issued by the
appropriate government. However, the employer shall be under no obligation to recruit any
person through career centres, merely because a vacancy has arisen. Such reporting of
vacancies to career centres shall not apply to employment like agriculture (private sector
establishment) except employment in plantation, domestic service, staff of Parliament, or any
State Legislature, employment for a term of fewer than 90 days, a non-governmental
establishment with less than 20 employees, etc.
EMPLOYMENT INFORMATION AND MONITORING
❖ The concept ‘Career Centres’ has been introduced in the SS Code. It means any office (including
employment exchange, place or portal) established and maintained for providing career services
(including registration, collection and furnishing of information, either by the keeping of registers
or otherwise) as may be prescribed.

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❖ Vacancy: Mandatory for establishments to report the vacancy to career centre before filling up
the vacancy. There is no obligation on the employer to recruit through the career centre.
EMPLOYEES’ PROVIDENT FUND (‘EPF’)
Applicability: The provisions relating to EPF are applicable to every establishment in which 20 or
more employees are employed.
Contribution to Provident Fund:
❖ Employer: Liable to contribute 10% of the wages payable to each employee to the provident
fund.
❖ Employee: Liable to contribute equal to the contribution payable by the employer i.e. 10% of the
wages in respect of each employee to the provident fund.
❖ The employee may contribute more than 10% of the wages to the provident fund subject to the
condition that the employer is not obligated to pay any amount over and above 10% of the wages
payable by employer.
❖ The Central Government can apply the rate of 12% of the wages payable to each employee as
contribution towards the provident fund for any establishment or class of establishment.
OFFENCES AND PENALTIES

Offence Punishment

If any person being an employer fails to Imprisonment for a term which may extend to
pay any contribution under this Code: 3 years:
• Which shall not be less than 1 year and a fine
of INR 1,00,000 if the employee's
contribution has been deducted from his
wages and not paid by the employer; and
• Which shall not be less than 2 months but
may be extended to 6 months and a fine of
INR 50,000, in any other case.

If any person is an employer: Imprisonment for a term which may extend to 6

• Fails to provide any maternity benefit; months or with a fine which may extend to INR
• Fails to produce any register or 50,000, or both.
document on demand by inspector-
cum-facilitator;
• Fails to pay the cess for building
workers;
• Dishonestly makes a false return,
report, statement, or information for
submission;
• Obstructs any inspector-cum-
facilitator or other officer of a
competent authority in the discharge
of his duties; and

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• Dismisses, discharges, reduces in

rank, or penalises a woman employee
in contravention of the provisions of
this Code.

If any person being an employer fails to Imprisonment for a term which may extend to 1
pay any amount of gratuity: year or with a fine which may extend to INR
50,000, or both.

If any person being an employer: Fine which may extend to INR 50,000.
❖ Deducts or attempts to deduct any
part of the employer's contribution
from the wages of an employee;
❖ Reduces the wages or any privilege
admissible to an employee in
contravention of this Code;
❖ Fails to submit any return, report,
statement, or information;
❖ Fails to pay any compensation to an
employee;

• Fails to send a statement to the

competent authority as per Chapter
VII (Employee's Compensation);
• Contravention of any provision of this
Code for which no special penalty is
given;
• Obstructs executive officers in
exercising their functions;
• Fails to comply with the condition
subject to which exemption from the
provisions of this Code by the
appropriate government; and
• Fails to pay administrative or
inspection charges.

In case of any subsequent offence, the penalty will be imprisonment for a term which may extend to
2 years and with a fine of INR 2,00,000. However, where such subsequent offence is regarding failure
by the employer to pay any contribution, charges, cess, maternity benefit, gratuity, or compensation
as per this Code, the penalty will be imprisonment for a term which may extend to 3 years, but which
shall not be less than 2 years and with a fine of INR 3,00,000.
If the offence is committed by a company, then every person who at the time of the commission of
the offence was the in-charge and responsible for the conduct of the company, will be responsible
and deemed to be guilty.

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SUMMARY
Key Changes
New categories of worker has been introduced in this code
❖ “gig worker“ is a person who performs work or participates in a work arrangement and earns
from such activities outside of traditional employer-employee relationship;
❖ "platform worker" is a person engaged in or undertaking platform work, i.e. a work arrangement
outside of a traditional employer employee relationship in which organisations or individuals use
an online platform to access other organisations or individuals to solve specific problems or to
provide specific services or any such other activities which may be notified by the Central
Government, in exchange for payment.
❖ This is first time in India that application based assignments performed by workers are
recognised as employee-employer relationship.
❖ Constitution of a National Social Security Board for unorganised workers.
❖ Expand sources for funds from corporate social responsibility and constitute a “special purpose
vehicle” for the purpose of implementation of schemes for unorganised workers.
❖ Significant reforms in the Employees Provident Fund
✓ All establishments having 20 or more workers come under the purview of EPF,
✓ Mandatory Aadhaar based registration,
✓ Increase penalty amount from INR 10,000 to INR 100,000 and imprisonment of one to three
years on deduction of employee contribution from salary and non-depositing of EPF.
Subsequent failure to pay contributions will attract imprisonment of two to five
❖ Changes in Employees State Insurance Scheme (ESI)
✓ Gig workers, plantation workers, unorganised sectors will come under ESI.
✓ ESI to be extended to any hazardous occupation and even when a single employee is
employed.
❖ Changes in Gratuity
✓ Permanent employees will be eligible for gratuity after five years of continuous service,
✓ Working journalists will be eligible for gratuity after three years, down from five years.
✓ fixed-term employees will be paid on the basis of their tenure of employment with one
organisation.
❖ Changes in Maternity Benefit
✓ Every woman is entitled to medical bonus of up to INR 3,500 where pre-natal confinement
and post-natal care is not provided by employer or such amount as may be notified by the
Central Government, with no threshold on the upper limit on this amount.

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MINIMUM WAGES ACT, 1948

❖ The Minimum Wages Act, 1948 deals with the fixing of minimum rates of wages in certain
employments.
❖ It extends to the whole of India and came into force on 15th March 1948.
❖ The provisions of the Act are intended to achieve the objective of doing social justice to workers
employed in the scheduled employment by prescribing the minimum rate of wages for them.
❖ In other words, the Act aims to provide a statutory fixation of minimum wages with a view to
preventing the exploitation of labour.
❖ Under this act, the appropriate Governments have the power to notify any employment where
1,000 number of employees are working in 'schedule of employment' to fix the rates of minimum
wages.
❖ Also, the Act does not apply to the employees in an undertaking owned by the Central
Government or with the central Government's consent.
Section 1: Short Title and Extent
❖ This section provides the Act's name as "The Minimum Wages Act, 1948." It also outlines the
extent of the Act, applying to the whole of India. It establishes the legal basis for setting minimum
wages.
Section 2: Interpretation
❖ Section 2 is a key provision that defines the terms used in the Act. It provides clarity on the
specific meanings of words that are crucial for understanding the legal framework of the Act. This
section is integral as it ensures the terms used within the Act are unambiguous.
Key Definitions under Section 2
1. Adolescent
✓ A person who has completed 14 years but not yet 18 years of age. This is significant for
determining employment eligibility and wage entitlement in certain cases.
2. Adult
✓ A person who has completed 18 years of age. This distinction determines wage rates and
work conditions for adult workers compared to adolescent and child workers.
3. Appropriate Government
✓ The "appropriate government" refers to either the Central Government or the State
Government, depending on the nature of employment. This is important for fixing and
revising minimum wage rates in specific employments.
4. Child
✓ A person who has not yet completed 14 years of age, marking the age below which a person
cannot be employed in a scheduled employment.
5. Competent Authority
✓ A government-appointed officer or body responsible for implementing and enforcing the
provisions of the Act.
6. Cost of Living Index Number
✓ This refers to an index number designed to measure the changes in the cost of living for
workers over time, influencing the adjustment of wages in scheduled employments.
7. Employer

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✓ A person who employs one or more employees and is responsible for paying the agreed
wages. The definition includes both the owner and the manager or the person in charge of the
employment.
8. Employee
✓ A person employed for hire or reward to do work in any scheduled employment, including
those working under a contract of employment.
9. Wages
✓ Wages refer to all remunerations paid to an employee for work performed in an
establishment, including basic pay, dearness allowance, and other allowances, but
excluding any benefits like pensions or gratuities.
What is the term minimum wages covered under the Minimum Wages Act?
❖ Under section 2 of the Minimum Wages Act, wages are termed as remuneration capable of being
represented in terms of money. The amount of wages is specified for all the government sector
employees working at the union and state level.
❖ However, the wages cover the house rent allowance as a special allowance along with the
minimum payment.
i.e. MINIMUM WAGES = Minimum Payment + House Rent Allowance
Wages do not include the following:
❖ House-accommodation, the supply of light, water, medical attendance.
❖ The contribution made by the employer to the pension or provident fund or any other scheme.
❖ Travelling allowance or travelling concession.
❖ Amount paid to the employed person to cover special expenses.
❖ Gratuity payable.

Section 3: Fixing of Minimum Rates of Wages

❖ This section empowers the appropriate government (central or state) to fix minimum wages for
workers in scheduled employments, subject to regular review. The minimum wage is designed to
provide workers with a fair standard of living.
❖ As per section 3 of the Minimum Wages Act, the compliances related to wages:
✓ Rate of Wages
✓ Wages during Overtime
✓ Wages for two or more classes of work
✓ Minimum time-rate wages for piece work
✓ Wages in the form of kind
Section 4: Minimum Rate of Wages
❖ Specifies the components of minimum wages, which could include basic wages and allowances,
ensuring the total wages are sufficient to meet a worker’s basic needs and cost of living.
Section 5: Procedure for Fixing and Revising Minimum Wages
❖ This section outlines the procedure for fixing or revising wages, which involves a systematic
inquiry by committees, notifications by the government, and public objections to proposed
changes.

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Section 6: [Omitted]
Section 7: Advisory Board
❖ Provides for the establishment of an Advisory Board to guide the appropriate government on
fixing minimum wages and related issues.
Section 8: Central Advisory Board
❖ The Central Advisory Board is tasked with advising both the central and state governments on
minimum wage policies and coordinating the work of other advisory boards.
Section 9: Composition of Committees, etc.
❖ Details the composition of the committees, which must include equal representation from
employers and employees, as well as independent members.
Section 10: Correction of Errors
❖ Allows the government to correct clerical errors in wage fixing notifications and orders.
Section 11: Wages in Kind
❖ Employers are allowed to pay wages in kind (non-cash payments) if it is customary or necessary
due to the nature of the employment.
Section 12: Payment of Minimum Rates of Wages
❖ Employers are required to pay workers at least the minimum wages fixed for their employment.
This ensures workers are protected from exploitation.
Section 13: Fixing Hours for a Normal Working Day
❖ The government can regulate the working hours of employees, ensuring a reasonable workday,
along with compensation for rest days and overtime work.
Section 14: Overtime
❖ Employees working beyond the normal working hours must be paid overtime at a rate of at least
one and a half times their regular hourly rate.
Section 15: Wages for Worker Who Works for Less Than Normal Working Day
❖ This section ensures that if an employee works less than the regular hours due to the employer’s
failure, they must still receive the full daily wage.
Section 16: Wages for Two or More Classes of Work
❖ If an employee is engaged in multiple types of work with different wage rates, the employer must
pay wages at the minimum rate for each class of work.
Section 17: Minimum Time Rate Wages for Piece Work
❖ For piece-rate work, workers should earn at least the minimum time rate for the same work,
ensuring fair compensation.
Section 18: Maintenance of Registers and Records
❖ Employers must maintain records of employees, work performed, and wages paid, which can be
inspected by labour inspectors.
Section 19: Inspectors
❖ This section empowers the appointment of inspectors responsible for ensuring compliance with
the Act’s provisions.
Section 20: Claims

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❖ Workers can file claims if they are paid less than the minimum wages, and the competent
authority will adjudicate these claims.
Section 21: Single Application in Respect of a Number of Employees
❖ Allows a collective application for claims by a group of workers employed in the same
establishment who have not been paid the minimum wage.
Section 22: Penalties for Certain Offences
❖ Specifies penalties for employers who fail to pay the minimum wage or violate other provisions
of the Act.
Section 22A: General Provisions for Punishment of Other Offences
❖ Provides penalties for other offences under the Act, where no specific penalty is mentioned.
Section 22B: Cognizance of Offences
❖ Stipulates that legal action for offences under the Act can only be taken within six months of the
offence.
Section 22C: Offences by Companies
❖ In the case of companies committing offences, individuals in charge of the company at the time
will be held responsible.
Section 22D: Payment of Undisbursed Amounts Due to Employees
❖ If wages are unpaid due to the employee's death, the amounts owed will be disbursed to their
legal heirs.
Section 22E: Protection Against Attachment of Employer’s Assets by Government
❖ Prevents the government from attaching employer assets for recovering outstanding wages.
Section 22F: Application of Payment of Wages Act, 1936
❖ Extends some provisions of the Payment of Wages Act to scheduled employments, particularly
regarding wage deductions.
Section 23: Exemption of Employer from Liability in Certain Cases
❖ Exempts employers from liability for failing to pay minimum wages if the worker was employed in
violation of the Act’s provisions (e.g., employment of children or adolescents).
Section 24: Power to Make Rules
❖ Empowers the appropriate government to frame rules to implement the Act, covering various
administrative matters like the fixing of wages, record maintenance, etc.
Section 25: Power to Make Regulations
❖ Provides the government with the power to create regulations to ensure effective implementation
of the Act.
Section 26: Effect of Agreement or Contract in Contravention of the Act
❖ Any agreement or contract that violates the provisions of the Act is void and unenforceable.
Section 27: Repeal of Earlier Minimum Wages Laws
❖ Repeals previous laws related to minimum wages and establishes this Act as the governing
legislation.
Section 28: Savings

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❖ Ensures that nothing in this Act interferes with the existing wage laws in force in a specific region
unless they are inconsistent with this Act.
Section 29: Applicability of Other Labor Laws
❖ The Act does not affect the operation of other labor laws unless there is an inconsistency
between them.
Section 30: Provisions Relating to Certain Establishments
❖ Specifies that the provisions of this Act apply to various types of establishments in specific
sectors, ensuring widespread protection.
Section 31: Power to Remove Difficulties
❖ This section empowers the appropriate government to make provisions for removing any
difficulties encountered during the implementation of the Act.
❖ If any unforeseen issue arises in applying the Act’s provisions, the government can issue orders
to resolve such issues, provided they are consistent with the intent of the Act.
The contract or agreement, which relinquishes or reduces the right to a minimum rate of wages of an
employee shall be null and void.
Part 1 of the schedule deals with employment in various establishments like manufacturing
industries, mills, mines, etc.
Part 2 of the schedule deals with employment in various agriculture-related industries like
farming, livestock, bees, poultry, etc.

1. Rate of Wages
The Government fixes the rate of wages based on:
❖ Minimum piece rate
❖ Minimum time rate
❖ Overtime rate that is the substitution of great pre-decided by the employer
❖ Guarantee time rate
In addition, the rates may vary from every locality, employment, apprentices, children, adolescence,
and adult.
❖ The rates may be fixed monthly, weekly, daily, or hourly.
❖ The minimum rates of wages for time work and piece work are referred to as: a minimum time
rate and minimum piece rate respectively
❖ Guaranteed time rate refers to the minimum rate of remuneration applicable to the employees
who are employed on piece work and is intended to secure such employees a minimum rate
of wages on a time work basis.
❖ Overtime rate refers to the minimum rate whether a time rate or a piece rate to apply in respect
of overtime work done by employees.

2. Wages during Overtime

❖ If the employee works for more than the prescribed hours, then the person is entitled to accept
payment for that particular period.
❖ The wages are required to be paid on collective terms based on hourly, weekly, or monthly basis.

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3. Wages for two or more classes of work

❖ As per section 16 of the Minimum Wages Act,
❖ If a single employee performs two or more classes of work, the minimum wages will be altered
as per the time invested for each particular job performed by the employee.
❖ In addition, the employee will be paid separate remuneration for each work.

4. Minimum time-rate wages for piece work

❖ As per section 17 of the Minimum Wages Act, a minimum time rate should be fixed for those
employed on the piece-rate system.
❖ The minimum time is a system where the wages are paid based on the time worked by the
employee.
❖ For example, if the employee works for 7 hours, then the payment of wages will be made in
accordance with the time delivered for each piece of work.
❖ If an employee is employed on piece work for which only the minimum time rate has been
fixed, the employer shall pay wages at not less than the minimum time rate.

5. Wages in the form of kind

❖ As per Section 11 of the Minimum Wages Act, the wages need to be paid only in cash form.
However, if there are any concessions or allowances provided to stakeholders by the
Government, then they can be paid in the prescribed manner.
What is the time of payment of wages?
❖ As per the Act, every person employed in railways, factories, industries, establishments who
employs 1000 persons in their work needs to be paid before the expiry of the 7 th of every month.
❖ If there are establishments other than railways or factories, then the wages have to be paid before
the expiry of the tenth day of the month.
However, some deductions in wages may occur during the time of payment to an employee.
The authorized deductions from wages are represented as follows
❖ Deduction from wages for fines
❖ Deductions from wages for absence from duty
❖ Deductions from wages for damage or loss of goods of organization
❖ Directions from wages for house accommodation supplied by the employer

For fixing minimum rates of wages, the appropriate government shall either appoint as
many committees and subcommittees or by notification in the Official Gazette, publish its
proposals for the information of persons likely to be affected.
The appropriate government shall appoint an advisory board to coordinate the work
of committees and subcommittees and advise in the matters related to the minimum rates of
wages.
The appropriate government shall appoint inspectors and the duties of the inspectors are as follows:

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❖ He shall enter any premises or place where employees are employed with his assistants to
examine any register, record of wages or notices required to be kept or exhibited by or under this
Act.
❖ He shall examine various details (names and addresses, payments made for the work, etc) that
are related to the out workers.
❖ If he has a reasonable cause to believe any person on the premises of an establishment as a
worker, he may examine that person.
❖ If he has a reason to believe that the registers, record of wages or notices, relevant in respect
of an offence under this act, he may seize or take copies of such things.
The appropriate government may appoint the following as an authority to hear and decide the
claims related to the various aspects of the minimum rates of wages:
❖ Any commissioner for workmen's compensation.
❖ Any officer of the central or state government not below the rank of a labour commissioner.
❖ Any other officer with experience as a judge of a civil court or as a stipendiary magistrate.
❖ If the claim is related to the payment of less than the minimum rates of wages, the authority
may direct for the payment of due together with the payment of compensation not exceeding
ten times the amount of such due.
❖ If the authority is satisfied that the application is either malicious or vexatious, it may direct
the person who presented the application to pay a penalty not exceeding fifty rupees to the
employer.
❖ Any employer who pays less than the minimum rates of wages or less than the amount due to
him, or contravenes any rule made under section 13 (Fixing working day hours) shall be
punishable with a maximum imprisonment of six months or with a maximum fine of five
hundred rupees or with both.
❖ Any employer who contravenes any provision of this act and if a specific penalty is not
mentioned for that contravention under this act, then he shall be punishable with a maximum
fine of five hundred rupees.

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THE PAYMENT OF WAGES ACT, 1936

The Government constituted a Commission known as “Royal commission on Labour”. On its
recommendations a bill related to payment of wages was introduced.
The Payment of Wages Act, 1936 regulates the payment of wages of certain classes of employed
persons.
OBJECTIVES
❖ To eliminate all malpractices by laying down the time and mode of payment of wages.
❖ Workers are paid their wages at regular intervals without any unauthorized deductions.
❖ The statute is intended to protect employees from unlawful employer deductions and/or
unjustifiable salary delays.
❖ Regulates the rights of the workers covered by this Act
❖ There are three kinds of wages minimum wage, fair wage & living wage covered under this Act.
❖ A living wage is defined as the minimum income necessary for workers to meet their basic
necessities. It is different from the minimum wage, which is based on labour productivity and skill
sets.
❖ Minimum wage is the lowest amount of money a labourer can earn as mandated by the law.
❖ Fair wage is the wage which is above the minimum wage but below the living wage. The lower
limit of the fair wage is obviously the minimum wage: the upper limit is to be set by the capacity
of the industry to pay.
Section 1: Short Title, Extent, Commencement, and Application
❖ Title: "The Payment of Wages Act, 1936."
❖ Extent: Applies to the whole of India.
❖ Commencement: Came into force on 23rd April 1936.
❖ Application: Applies to all persons employed in factories, railways, and other specified industrial
establishments as defined.
Section 2: Definitions
1. Wages
❖ Refers to all forms of remuneration (whether by salary, allowance, or otherwise) expressed in
terms of money.
❖ It is payable to a person employed in respect of their work or services rendered.
❖ Includes:
❖ Amount payable under the terms of employment
❖ Amount payable under any award, settlement, or court order
❖ Paid as overtime labour or for vacations / leave period
❖ Payable on account of Termination of employment
Excludes:
❖ Employer contributions to pension or provident funds.
❖ Any traveling allowance or expenses incurred during duty.

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❖ Gratuity payable on the termination of employment.

1. Employed Person
❖ Refers to any person who is employed in an establishment to which the Act applies, whether
directly or indirectly.
2. Employer
❖ Includes:
✓ The owner or person responsible for managing an industrial or other establishment.
✓ The manager of the factory as defined under the Factories Act, 1948.
✓ Any other person designated as responsible under the law for wage payments.
3. Factory
❖ Refers to premises defined under the Factories Act, 1948, including those where manufacturing
processes are carried out.
4. Industrial or Other Establishments
❖ Includes:
✓ Tramways, railways, or motor transport services.
✓ Factories and mines.
✓ Plantations.
✓ Workshops or other establishments engaging in manufacturing.
5. Person Responsible for Payment of Wages
❖ Designated as the person responsible for the disbursement of wages, usually the employer or
manager.
Section 3: Responsibility for Payment of Wages
❖ Responsibility lies with:
✓ The employer.
✓ The person designated by the employer or factory manager.
✓ The contractor in case of outsourced work.
Section 4: Fixation of Wage Periods
❖ Employers must fix wage periods.
❖ The period should not exceed one month.
Section 5: Time of Payment of Wages
❖ Wages to be paid:
✓ By the 7th day of the month for establishments with less than 1,000 employees.
✓ By the 10th day for establishments with 1,000 or more employees.
❖ Wages must be paid before the expiry of the second working day after termination.
Section 6: Wages to Be Paid in Current Coin or Currency Notes
❖ Wages must be paid in cash (current coin or currency notes).
❖ Payment through cheque or bank transfer is allowed with the employee's consent.
Section 7: Deductions from Wages

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❖ Lists permissible deductions:

✓ Fines.
✓ Absence from duty.
✓ Damage or loss to the employer’s property.
✓ Recovery of advances or loans.
✓ Contributions to provident funds or insurance schemes.
Section 8: Fines
❖ Employers can impose fines for misconduct.
❖ Conditions:
✓ The act for which a fine is imposed must be pre-notified.
✓ Fines cannot exceed 3% of wages in a month.
✓ Employees must be given a chance to explain before imposing a fine.
Section 9: Deductions for Absence from Duty
❖ Employers can deduct wages for unauthorized absence.
❖ Deductions must be proportionate to the absence.
Section 10: Deductions for Damage or Loss
❖ Deductions allowed for loss or damage caused by an employee’s negligence or default.
❖ Employees must be given a reasonable opportunity to explain before deductions.
Section 11: Deductions for Services Rendered
❖ Deductions permitted for services provided by the employer, such as housing or amenities.
Section 12: Deductions for Recovery of Advances
❖ Advances can be recovered in installments.
❖ Installments must not exceed the limits prescribed.
Section 12A: Deductions for Recovery of Loans
❖ Allows deductions for repayment of loans granted for housing, education, or other specified
purposes.
❖ Installments must adhere to prescribed rules.
Section 13: Deductions for Payments to Co-operative Societies
❖ Allows deductions for contributions to:
✓ Co-operative societies.
✓ State-approved insurance schemes.
Section 13A: Maintenance of Registers and Records
❖ Employers must maintain registers of wages, fines, deductions, and advances.
❖ Records should be available for inspection.
Section 14: Inspectors
❖ Empowers the government to appoint inspectors.
❖ Inspectors are responsible for ensuring compliance with the Act.

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Section 14A: Facilities to Be Afforded to Inspectors

❖ Employers must provide facilities to inspectors for inspections, inquiries, and enforcement of the
Act.
Section 15: Claims Arising Out of Deductions or Delayed Wages
❖ Employees can file claims for:
✓ Unauthorized deductions.
✓ Delayed payment of wages.
❖ Claims can be made to the prescribed authority.
❖ The authority can award compensation in addition to wage recovery.
Section 16: Single Application in Respect of Claims
❖ A group of employees with similar claims can file a single application to the authority.
Section 17: Appeal
❖ Provides a right to appeal decisions made by the prescribed authority.
❖ Appeals must be filed within 30 days of the decision.
Section 18: Powers of Authorities Appointed under the Act
❖ Prescribed authorities have powers similar to civil courts:
✓ Summoning witnesses.
✓ Examining documents.
✓ Enforcing compliance.
Section 20: Penalty for Offenses under the Act
❖ Penalties for employers who:
• Fail to pay wages.
• Make unauthorized deductions.
❖ Fines can extend to ₹500 or imprisonment for one month.
Section 21: Procedure in Trial of Offenses
❖ Specifies procedures for prosecuting offenses.
❖ Courts must consider whether the offense was deliberate or accidental.
Section 22: Bar of Suits
❖ Bars civil suits for matters covered under the Act.
❖ Disputes must be resolved using the prescribed mechanisms.
Section 22A: Protection of Action Taken in Good Faith
❖ Protects employers or authorities from legal action for acts done in good faith under the Act.
Section 23: Contracting Out
❖ Any contract or agreement waiving rights under the Act is void.
❖ Employees cannot forfeit their rights under the Act.
Section 24: Delegation of Powers
❖ Allows the appropriate government to delegate powers to subordinate officers.

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Section 25: Display of Notices

❖ Employers must display notices specifying:
• Wage periods.
• Deductions.
• Authority for redressal.
Section 25A: Payment of Undisbursed Wages in Cases of Death of Employed Person
This section addresses the procedure for handling wages due to an employee who has passed away.
It ensures that the rightful recipients (family members or legal heirs) receive the undisbursed wages
without unnecessary complications.
Key Provisions:
1. Applicability:
❖ This section applies when an employed person passes away and wages remain unpaid at the
time of their death.
2. Payment to the Nominee:
❖ If the deceased employee has nominated someone in writing (in the prescribed manner), the
wages shall be paid directly to the nominee.
3. Payment to Legal Heirs:
❖ If there is no nomination, the wages may be paid to the legal heirs of the deceased.
❖ A limit on the amount may be prescribed by the appropriate government for such payments
without requiring a succession certificate.
4. Time Limit for Payment:
❖ The Act ensures that such payments are made promptly, typically within a specified period after
the death of the employed person.
5. Rules and Procedures:
❖ The central or state government may frame rules to:
• Define the procedure for determining the rightful recipient.
• Specify the format for nominations.
• Prescribe the maximum amount of wages payable without requiring legal
formalities like succession certificates.
Section 26: Rule-Making Power
❖ Empowers the central and state governments to make rules for implementing the Act.
❖ Rules may prescribe:
✓ Registers to be maintained.
✓ Forms and procedures for claims.
HIGHLIGHTS OF THE PAYMENT OF WAGES ACT
1. This act applies to an employed person whose wage does not exceed 24,000 rupees per month.
2. A wage-period shall not exceed one month.
3. The total amount of fine imposed in a wage-period on any employed person shall not exceed an
amount equal to 3% of the wages.

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4. A fine shall not be imposed on any employed person who is under the age of 15 years. No fine
imposed, shall be recovered from the employed person by instalments or after the expiry of 90
days from the day on which it was imposed.
5. If a person responsible is for contravening the provisions relating to:
✓ Fixation of the wage period
✓ Making the payment on a working day
✓ Paying the wages in currency coins and/or currency notes or both
✓ Recording fines or deductions for losses or damages in a register in the prescribed format
✓ Displaying notices pertaining to the acts and omissions which attract a fine
✓ Then, such a person is punishable with a fine of up to three thousand seven hundred and fifty
rupees (Rs. 3,750).
6. If a person who is required to nominate or designate a person under section 3 (responsibility
for payment of wages) fails to do so, such person shall be punishable with a maximum fine of
3000 rupees.
7. If a person wilfully obstructs an inspector or refuses to produce any register or document
demanded by the inspector or refuses to afford an inspector any reasonable facility for making
the inspection shall be punishable with a fine which shall not be less than 1500 hundred
rupees but may extend to 7500 rupees.
8. If any person is convicted again of an offence involving contravention of the same provision,
then he shall be punishable with imprisonment for a term or with fine which shall not be less
than 3750 rupees but may extend to 22500 rupees.
9. If any person fails or wilfully neglects to pay the wages by the date fixed by the authority, he
shall be punishable with an additional fine which may extend to 750 rupees for each day for
which such neglect continues.
10. Industrial or other establishment includes the following:
✓ Tramway or motor transport service engaged in carrying passengers or goods or both for
hire or reward.
✓ Air transport service other than such service which is exclusively employed in the military,
naval or air forces or the civil aviation department.
✓ Dock, wharf, or jetty.
✓ Inland vessel, mechanically propelled.
✓ Mine, quarry, or oilfield.
✓ Plantation
✓ Any workshop or establishment is included if it involves the production, adaption, or
manufacturing of articles for use, transport, or sale.
✓ Any establishment in which work relating to the construction, development, or maintenance
of buildings, roads, bridges or canals, navigation, irrigation, or distribution of electricity or any
other form of power is being carried on.
✓ Any other establishment notified by the appropriate government.
11. Payments should be made before the 7th day of the month if the number of workers is less than
1000, and before the 10th day if the number of workers is greater than 1000. The wage-period
cannot be more than one month.

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If a person is employed on a dock, wharf or jetty or in a mine, the balance of wages shall be
paid before the expiry of the 7th day from the day of such completion.
12. Deductions which may be made from Wages
Employers should only make deductions in accordance with this statute when paying wages to
employees.
The employer should not be able to make whatever deductions he wants.
Deductions are the amounts paid by an employee to his employer.
The following are not called as the deduction:
❖ Employee increase has been halted.
❖ The employee's promotion has been halted.
❖ Lack of performance by the employee causes the incentive to be halted.
❖ The employee was demoted.
❖ Suspension of employment
❖ The employer's activities should have a good and sufficient reason for them.
❖ Deductions
❖ The following mentioned are the main deductions that are allowed under the Act-
❖ Fines;
❖ Deduction for the actual period of absence
❖ Deduction for the damage or loss of goods expressly entrusted to the employed person;
❖ Deduction for house accommodation;
❖ Deduction for the amenities and service supplied by employer with agreement to the employee;
❖ Deduction for recovery of advances and interest, and adjustment of overpayment;
❖ Deductions for recovery of loans from any fund constituted for the welfare of labour as agreed
between employer and employee;
❖ Deduction for income tax;
❖ Deduction on orders of a court or other authority;
❖ Deduction for subscription and repayment of advance from any Provident Fund;
❖ Deduction for payments to cooperative societies as agreed between employer and employee;
❖ Deduction of premium for LIC policy on written authorization of the employed person; or any
other investment for Post Office Saving Schemes;
The total amount of deductions from the wages of an employed person shall not exceed:
❖ 75%, if the deductions include payments to co-operative societies.
❖ 50%, in any other case.
13) Fines
The employer should impose a fine on the employee with the agreement of the state government or
other appropriate body. Before imposing a fine on an employee, the employer should follow the rules
outlined below.
1. A penalties notice board for employees should be posted in the workplace, and it should include
actions that employees should not engage in.

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2. No fine should be imposed on the employee until he provides an explanation and justification for
his actions or omissions.
3. The total amount of the fine shall not exceed 3% of his annual salary.
4. No fines shall be levied on employees under the age of fifteen.
5. A one-time fine should be imposed on the employee's wage for the conduct or omission he
committed.
6. Fines should not be collected from the employee in installments.
7. The fine must be paid within 60 days of the day the fine was imposed.
8. A fine should be issued for the employee's daily act or omission.
9. All fines collected from employees should be credited to the common fund and used for
employee benefit.
14) The appropriate government may appoint the following as the authority to hear and decide the
claims related to the deductions or delay in wages:
❖ Any commissioner for Workmen's Compensation or
❖ Regional Labour Commissioner (central) or
❖ Assistant Labour Commissioner (central) with at least two years’ experience or
❖ Assistant Labour Commissioner (state) with at least two years’ experience or
❖ A presiding officer of any Labour Court or Industrial Tribunal constituted under the Industrial
Disputes Act, 1947 or under any corresponding law or
❖ Judge of a Civil Court or a Judicial Magistrate.

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PAYMENT OF BONUS ACT, 1965 & EQUAL REMUNERATION ACT, 1976

Payment of Bonus Act, 1965

The payment of Bonus Act, 1965 aims to regulate the amount of bonus to be paid to the persons
employed in establishments based on its profit and productivity. The act is applicable to the whole
of India for all establishments which had twenty or more persons employed on any day during the
year.
Objectives of the Act
The objectives of the Bonus Act (Payment of bonus Act) are as follows:
❖ To impose a legal responsibility upon the employer of every establishment covered by the Act to
pay the bonus to employees.
❖ To designate the minimum and maximum percentage of bonus.
❖ To prescribe the formula for calculating bonus.
❖ To provide redressal mechanism.
Applicability of the Act
The Payment of Bonus Act implements to the establishments which fall under any of the below listed:
❖ It applies to any factory or establishment which had twenty or more workers employed on any
day during the year.
❖ The act does not apply to the non-profit making organisations.
❖ It is not applicable to establishments such as LIC, hospitals which are excluded under Section
32.
❖ It is not applicable to establishments where employees have signed an agreement with the
employer.
❖ It is not applicable to establishments exempted by the appropriate government like sick units.
Section 32 in The Payment of Bonus Act, 1965
Act not to apply to certain classes of employees. —Nothing in this Act shall apply to—
1. Employees employed by the Life Insurance Corporation of India;
2. Seamen as defined in clause (42) of section 3 of the Merchant Shipping Act, 1958;
3. Employees registered or listed under any scheme made under the Dock Workers (Regulation of
Employment) Act, 1948, and employed by registered or listed employers;
4. Employees employed by an establishment engaged in any industry carried on by or under the
authority of any department of the Central Government or a State Government or a local
authority;
5. Employees employed by—
a) The Indian Red Cross Society or any other institution of a like nature (including its branches);
b) Universities and other educational institutions;
c) Institutions (including hospitals, chambers of commerce and social welfare institutions)
established not for purposes of profit;
6. Employees employed by the Reserve Bank of India;
7. Employees employed by—
a) The Industrial Finance Corporation of India;

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b) Any Financial Corporation established under section 3, or any Joint Financial Corporation
established under section 3A, of the State Financial Corporations Act, 1951
c) The Deposit Insurance Corporation;
d) The National Bank for Agriculture and Rural Development;]
e) The Unit Trust of India;
f) The Industrial Development Bank of India;
g) The Small Industries Development Bank of India established under section 3 of the Small
Industries Development Bank of India Act, 1989;]
h) The National Housing Bank;]
i) Any other financial institution (other than a banking company)], being an establishment in
public sector, which the Central Government may, by notification in the Official Gazette,
specify, having regard to—
8. Employees employed by inland water transport establishments operating on routes passing
through any other country.

Departments, Undertakings and Branches

According to the Bonus Act, any different departments or undertakings or branches of an
establishment of whether located in the same place or at different areas should be considered as
parts of the similar establishment for computation of bonus under the Act.
A separate balance sheet regarding profit and loss of the establishment in the year had to be prepared
and maintained concerning such department or undertaking, or branch should be treated as a
separate establishment for computation of bonus for the year.
Eligibility for Bonus
Any employee is eligible for availing bonus if the following conditions are satisfied:
❖ The employee receiving salary or wages up to Rs.21,000 per month
❖ The employee engaged in any work whether skilled, unskilled, managerial, supervisory etc.
❖ The employee who have worked not less than 30 working days in the same year.
Disqualification of Bonus
The employees cannot avail the bonus if any action taken by the management in case of dishonesty,
theft, sabotage of any property of establishment, violent behaviour while on the duty within premises
of the establishment.
Number of Working Days
An employee will be considered “working” in a year if the following conditions are satisfied:
❖ The employee who is under an agreement or as permitted by standing orders under the Industrial
Employment (Standing Orders) Act, 1946, the Industrial Disputes Act, 1947 or any other law
applicable to the establishment.
❖ The employee during employment has taken leave with salary.
❖ The employee who has been absent due to temporary disablement caused by accident during
the work.
❖ The employee has been on maternity leave with salary in the accounting year.
Payment of Minimum and Maximum Bonus
❖ The minimum bonus will be 8.33% of the salary during the year, or

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✓ 100 rupees will be given in case of employees above 15 years and sixty rupees in the case of
employees below 15 years, whichever is higher.
❖ The maximum bonus is 20% of the salary during the accounting year.
❖ If the salary of an employee exceeds seven thousand rupees or the minimum wage fixed by the
appropriate government (whichever is higher), then the bonus payable to such employee shall be
calculated as if his salary was seven thousand rupees or the minimum wage fixed by the
appropriate government.
❖ If an employer has paid a puja bonus or any other customary bonus or a part of the bonus before
the date, then the employer shall be entitled to deduct the amount of bonus paid from the
amount of bonus payable to the employee under this act.
Timeline for Payment of Bonus
The bonus shall be paid within a month from the date on which the award becomes enforceable if
there is a dispute regarding the payment of the bonus. In any other case, the bonus shall be paid
within a period of eight months from the close of the accounting year.
Inspectors under Section 20
Section 20 enables the relevant government to appoint Inspectors for this Act after notification in the
official gazette.
Powers of inspectors:
❖ Making an employer to furnish information.
❖ Able to visit any establishment at any reasonable time.
❖ Able to order certain production documents and examine the same.
❖ Able to take extracts from the records
❖ To examine the employers, his agent or servant or any other person found in charge of the
establishment.
❖ To execute such other powers as may be prescribed under the rules.
Duties of the Employer
The following duties to be carried out by the employer:
❖ To estimate and pay the annual bonus as required under the Act.
To maintain the following registers:
❖ The register should show the computation of allocating surplus in respective Form.
❖ The register should be maintained with the payment of the bonus to the employees.
❖ The records should be maintained before inspection and such other information should be
stored.
Rights of Employers
The following rights to be claimed out by the employers:
❖ Right to notice any disputes relating to application or interpretation of any provision of the Act, to
the Labour Court or Labour Tribunal.
❖ Right to make a valid deduction from the bonus due to an employee, such as festival bonus paid
and financial loss created by the misbehaviour of the workers.

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❖ Right to take the bonus of an employee, who has been dismissed from service for misbehaviour,
violent behaviour, fraud, misappropriation or sabotage of any property of the establishment.
Rights of Employees
The following rights to be claimed out by the employees:
❖ Right to claim bonus due under the Act and to request an application to the Government for the
redemption of bonus amount which is unpaid, within one year of its being due.
❖ Right to notice any dispute to the Labour Court/Tribunal.
✓ Employees who are not eligible for the Payment of Bonus Act, cannot raise a dispute about
the bonus under the Industrial Disputes Act.
❖ Right to seek clarification and obtain information, on any item in the accounts of the
establishment.
Offences and Penalties
If a person violates any of the provisions of this act or fails to comply with the given direction or
requisition, he shall be punishable with a maximum imprisonment of six months or with a
maximum fine of one thousand rupees or with both.
Schedules
The gross profits shall be calculated in the manner specified in the:
✓ The first schedule is in the case of a banking company.
✓ Second Schedule, in any other case.
The third schedule is regarding the sums deductible from gross profits.
The fourth schedule is regarding the set on and set off of allocable surplus for various accounting
years.

Equal Remuneration Act, 1976

The chief motive of the Equal Remuneration Act 1976 is to provide for payment of remuneration to
men and women on a uniform basis. In order to avoid discrimination against women and to treat the
women in a fair and just manner, this act is brought into force.
Equal Remuneration Act 1976: Important points
1. Section 2(g) of the act defines remuneration. It includes basic wage or salary and additional
emoluments.
2. Same work or work of a similar nature (Section 2(h)) refers to the work that requires some skill,
effort, and responsibility under similar working conditions by a man or a woman.
3. Section 4 states that it is the duty of the employer to pay equal remuneration to men and
women workers for the same work or work of a similar nature. As per this section:
✓ No employer shall pay less remuneration or reduce the rate of remuneration of the workers
of opposite gender performing the same work or work of similar nature.
✓ Before the commencement of this act, if the rates of remuneration for men and women
workers for the same work or work of similar nature are different only on the grounds of
gender, then the highest of such rates shall be the rate of remuneration.
4. Section 5 states that there shall be no discrimination while recruiting men and women
workers.

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5. The appropriate government shall constitute one or more Advisory Committees (Section 6) to
increase employment opportunities for women.
✓ The total membership shall not be less than ten persons, to be nominated by the
appropriate government of which one-half shall be women.
✓ The advisory committee shall take the nature of work, working hours, the suitability of women
for employment, provision for part-time employment and other relevant factors into
consideration while tendering its advice.
6. Officers not below the rank of a Labour Officer shall be appointed by the appropriate
government to:
✓ Hear and decide the complaints regarding the contravention of any provision of this act.
✓ Decide the 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.
7. If any employer or worker is aggrieved by any order, he/ she may appeal to
such authority specified by the appropriate government within thirty days from the date of the
order.
8. Inspectors shall be appointed by the appropriate government to investigate whether the
provisions of this act are being followed by the employers or not. Every inspector shall within the
local limits of his jurisdiction:
✓ Shall enter any building, factory, premises or vessel with assistance.
✓ Shall examine documents relating to the muster-roll or other documents relating to the
employment of workers.
✓ Shall take evidence of any person to ascertain whether the provisions of this act are being
compiled or not.
✓ Shall examine the employer, his agent or any other person found in charge of the
establishment.
✓ Shall make copies of any register or document related to the establishment under this act.
✓ Shall require any person to produce any register or document or any information.
9. After the commencement of this act, if an employer fails to follow the following shall be
punishable with a maximum imprisonment of one month or with a maximum fine of ten
thousand rupees or with both:
✓ Fails to maintain any register or other document in relation to workers.
✓ Fails to produce any register, muster-roll or other document relating to the workers.
✓ Refuses to give any evidence or any information.
✓ Prevents his agent, servant or any other person in charge of the establishment or any worker,
from giving evidence.
10. After the commencement of this act, if any employer does the following shall be punishable with
fine which shall not be less than ten thousand rupees but may extend to twenty thousand
rupees or with imprisonment for a term which shall be not less than three months but 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:
✓ Pays at unequal rates to men and women workers, for the same work or work of a similar
nature.

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✓ Makes any discrimination between men and women workers in contravention of the
provisions of this Act.
✓ Fails to follow any direction made by the appropriate government.
11. If any person is required to produce any register or any other document to an inspector omits
or refuses to produce or to give any information, then he shall be punishable with a maximum fine
of five hundred rupees.

Offence Penalty

Employer omits/fails to -maintain the register -produce the Maximum: Rs 10,000

register and other relevant documents -give evidence -give any OR Maximum
information Imprisonment: 1 month OR
Both

Employer makes -any recruitment in contravention of the Minimum: Rs 10,000

provisions of this act -any payment of remuneration at an Maximum: Rs 20,000 OR
unequal rate for the same work or work of similar nature -any
discrimination between a man and a woman -an omission to Minimum Imprisonment:3
carry out the directions made by the appropriate government. months Maximum
Imprisonment:1 year
OR Both
Note: The maximum period
of 1 year shall be replaced
by 2 years for the 2nd,3rd
and 4th offence.

Failure to produce the register or any other document or to give Maximum: Rs 500
any information to the Inspector

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THE CODE ON WAGES 2019

The Code on Wages, 2019 (“Code”) codifies and amends the extant laws related to wages, bonus
and remuneration encashed to labour workforce in organised and unorganised sector of
employment. It aims to simplify the implementation, enforcement and harmonise the labour law
regime in India.
The Code subsumes the following enactments upon its enforcement viz. (i) The Payment of Wages
Act, 1936 (“Wages Act”); (ii) The Minimum Wages Act, 1948 (“MW Act”); (iii) The Payment of Bonus
Act, 1965 (“Bonus Act”); and (iv) The Equal Remuneration Act, 1976 (“ER Act”).
Contrast between the Extant Framework and the Prospective Framework
1. Protection against gender discrimination
❖ Existing Framework: At present, ER Act provides for payment of equal remuneration to men and
women workers performing ‘same work or work of similar nature’, by the same employer and
prohibits discrimination on the grounds of gender against women in the matters of employment
and other related aspects. For the purposes of paying equal remuneration to employees
undertaking ‘same work or work of similar nature’, the employer shall take into consideration the
set of skills, efforts and responsibilities required to be possessed by men and women employed
to do such nature of work.
❖ The Code on Wages: It is quite significant to see that the Code has adopted a gender-neutral
approach whereby prohibiting gender discrimination in relation to matters of recruitment and
payment of remuneration. Once the Code is brought into effect, the employers shall be required
to pay equal rate of remuneration to the employees regardless of their genders, performing ‘same
work or work of a similar nature’. The employer while recruiting employees to carry out, ‘same
work or work of similar nature’, shall also now take into account the employees’ work experience
in addition to the skill, effort, responsibility in relation to terms and conditions of employment.
2. Reduced hours of work constituting a normal working day
❖ Existing Framework: Till date under the MW Act and rules framed thereunder, a normal working
day for an adult, adolescent worker shall comprise of total 9 (nine) hours and similarly, 4&1/2
(four and a half) hours for a child worker, inclusive of rest intervals. The present statute distinctly
defines the term ‘adult’, ‘adolescent’ and ‘child’ with respect to number of hours of work to
constitute a normal of working day.
❖ The Code on Wages: The draft rules framed under the Code has notably reduced the hours of
work to total 8 (eight) hours inclusive of rest intervals to constitute a normal working day. Under
the Code, neither the term ‘adult’, ‘adolescent’ and ‘child’ has been defined nor the number of
hours of work to comprise a normal working day has been specified for such category of workers.
3. Fixed rate of wages for overtime work
❖ Existing Framework: Currently, the MW Act casts an obligation on the employer to pay wages for
overtime work to employee, as per the rates prescribed under the MW Act or by the appropriate
government, from time to time. The state specific shops and establishment legislations provide
a fixed rate of wages for overtime work i.e., twice the normal rate of wages. Such state-based
shops and establishment legislations also provide a limit pertaining to maximum number of
overtime hours an employee should not exceed while working for an employer.

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❖ The Code on Wages: It is pertinent to note that the Code has uniformed the rate of wages for
overtime work i.e., twice the normal rate of wages, in relation to minimum wages payable by an
employer to an employee.
4. Consolidated definition of the term ‘Wages’
❖ Existing Framework: Under the current regime, the MW Act, Wages Act, Bonus Act and ER Act
provide different definitions for the term ‘wages’, ‘remuneration’ and ‘salary or wage’
incorporated basis the specific operation of the concerned statute.
❖ The Code on Wages: Interestingly, the definition of the term ‘wages’ has been made uniform
across all the labour codes. As per the Code, the term ‘wages’ means all remuneration paid in
way of salary and allowances and includes ‘basic pay’, ‘dearness allowance’ and ‘retaining
allowance’ (if any) and excludes components such as bonus, value of house accommodation or
electricity, water or medical attendance, provident fund contribution, conveyance allowance,
house rent allowance, overtime allowance etc. It is significant to be note that a proviso has been
inserted under the definition of ‘wages’ to construe that the excluded components cannot
exceed one half, or such other percent as notified by the Central Government, of all the
remuneration payable to the employee. In the event such amount exceeds one half or such
percent as prescribed by the Central Government, the same shall be considered as ‘Wages’.
Another proviso has been added in the definition to provide that in the event an employee is given
any remuneration in kind by the employer, the value of such remuneration in kind which does not
exceed 15% (fifteen percent) of the total wages, shall be deemed to form part of the wages
payable to such employee.
5. Expanded coverage in relation to payment of minimum wages
❖ Existing Framework: Presently, under the MW Act, the minimum wage is entitled to employees
undertaking work of skilled, unskilled or clerical nature in a scheduled employment for which the
respective state government fixes a rate of minimum wages.
❖ The Code on Wages: It is interesting to observe that under the Code, the payment of minimum
wages is not only limited to an employee undertaking work of skilled, unskilled, clerical nature
but also includes those employees performing work of supervisory, managerial, administrative
and technical nature. However, no clarity and reference has been provided under the Code
regarding scheduled employment as opposed to the extant framework under the MW Act.
6. Expanded coverage under payment of wages
❖ Existing Framework: Till date, the applicability of the Wages Act is limited to employees earning
wages up to INR 24,000/- (Indian Rupees Twenty-Four Thousand only) per month. Moreover, the
Wages Act is only applicable to class of employers be it the factories and limited establishments
such as railways, mines, docks etc., as provided under the statute.
❖ The Code on Wages: It is intriguing to note that the Code mandates the payment of wages to all
categories of employers be it a factory, establishment etc., except establishments of
Government of India and respective state governments. However, the Code does not prescribe
any wage limit in relation to the employees unlike the extant Wages Act.
7. Distinction between ‘employee’ and ‘worker’
❖ Existing Framework: Under the present legislations related to wages and bonus, the term
‘employee’ has been defined separately. Further, the term ‘worker’ comes within the ambit of the
defined term ‘employee’ as provided under the current framework populated in these
legislations.

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❖ The Code on Wages: It is pertinent to note that the Code distinguishes between the term
‘employee’ and ‘worker’ where, an ‘employee’ means any person (other than an apprentice
employed under the Apprentices Act, 1961) employed in an establishment to perform work of
skilled, semi-skilled, or unskilled manual, operational, supervisory, managerial, administrative,
technical, or clerical work nature. On the other hand, a ‘worker’ means a person employed in any
industry to perform work of manual, unskilled, skilled, technical, operational, clerical or
supervisory nature and excludes (i) an apprentice as defined under Apprentice Act, 1961; (ii) a
person employed in a managerial or administrative capacity; and (iii) a person employed in a
supervisory capacity drawing a monthly wage exceeding INR 15,000/- (Indian Rupees Fifteen
Thousand only).
8. Time limit for payment of wages
❖ Existing Framework: Under the present Wages Act, the time limit prescribed for the payment of
wages depends upon the different sectors of employment. In the event, where an employer
terminates an employee, the wages shall be paid within 2 (two) working days from the date of
termination of such employment. The timeline regarding payment of wages by an employer upon
voluntary resignation by the employee, varies basis the provisions of the state specific shops and
establishments legislation.
❖ The Code on Wages: Notably, the Code has discontinued with the practice of prescribing
timeline for wage disbursement basis the sector of employment. Now, timeline in respect of
payment of wages has been standardised for all employers regardless of their sector. Based upon
the type of engagement, the following payment timelines have been proposed under the Code:

[Link]. Types of Engagement Payment Timelines

1. Daily Basis At the end of the shift

2. Weekly Basis On the last working day of the

week (before weekly holiday)

3. Fortnightly Basis Before the end of the

2nd (second) day after the end
of fortnight

4. Monthly Basis Before the expiry of the

7th (seventh) day of the
succeeding month

Note: For any type

of engagement,
the wage period
shall not be more
than a month.

Further, in case where an employee has been removed, dismissed, retrenched or becomes
unemployed due to closure of an establishment or has resigned from the services, the wages shall
be paid to such employee within 2 (two) working days of such removal, dismissal, retrenchment or
resignation. The scenario pertaining to disbursement of wages upon resignation of employment by
an employee has now been acknowledged under the Code for which a timeline has been
incorporated which shall be pertinent from an employer’s perspective.

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9. Disqualification for bonus

❖ Existing Framework: Under the Bonus Act, an employee shall be disqualified for bonus in case
where such an employee has been terminated on the grounds of (i) fraud; or (ii) riotous or violent
behaviour while on the premises of establishment; or (iii) theft, misappropriation or sabotage of
any property of the establishment.
❖ The Code on Wages: It shall be noted that the Code continues to retain the grounds of
disqualification for bonus as enumerated under the extant Bonus Act and has further
incorporated conviction for sexual harassment as an additional ground for disqualification for
bonus entitlement to an employee.
10. Introduction of Inspector cum Facilitator
❖ Existing Framework: The present legislations grant certain powers to officers and inspectors to
undertake cognizance in the of matters of any non- compliances on the part of the employers
and pass necessary orders, as it may deem fit.
❖ The Code on Wages: It is noteworthy to see that the Code has adopted a neutral approach in
respect of streamlining the processes of compliances to be undertaken by employers. The
introduction of the concept of Inspector cum Facilitator has been predicted to play a very
progressive role to change the dynamics of the labour laws in India. The role of the Inspector
cum Facilitator is not limited to carry out search and seizures, inspection of the records, but shall
also to act as a facilitator by rendering advice to the employers and workers in relation to
compliances of the Code. The Code has also, recognised the significance of the principles of
natural justice wherein prior to initiating a prosecution, the Inspector-cum-Facilitator must give
an opportunity to the employer to comply with the provisions of the Code through a written
direction. The employer is required to comply with the directions within the stipulated time
period in order to avoid any prosecution. However, the opportunity to rectify the breach will not
be provided to an employer in case such employer is found to be a repeated offender of a
violation being committed within a span of 5 (five) years from the date of first
offence. Additionally, the Code also allows inspection electronically and calling of information
relating to inspection through web-based platform.
11. Offences and Penalties
❖ Existing Framework: The current framework prescribes the penalties upon non-compliance of
the provisions of the concerned legislations. The penalties provided under these statutes are
mostly in the nature of fines combined with imprisonment in respect of offences committed by
an employer.
❖ The Code on Wages: A major step has been undertaken in the Code to decriminalised majority
of the offences by making the penalties monetary in nature. However, it specifies that an
employer shall be penalised with imprisonment upon subsequent or repeated violation of an
offence under the Code within a span of 5 (five) years from the date of conviction of first offence.
Penalties vary depending upon the nature of the offence, with maximum penalty entailing to
imprisonment for 3 (three) months and fine up to INR 1,00,000/- (Indian Rupees One Lakh Only).
The table below depicts the list of offences and penalties prescribed under the Code.

[Link]. Offence Penalty

1. Upon employer paying less than the amount Fine of INR 50,000/- (Indian
due to an employee under the provisions of the Rupees Fifty Thousand only)
Code.

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2. In case an employer repeats the non- Imprisonment for a term 3 (three)

compliance in relation to paying less than the months and/or fine of INR
amount due to an employee under the 1,00,000/- (Indian Rupees One
provisions of the Code. Lakh only)

3. In case an employer contravenes any Fine of INR 20,000/- (Indian

provisions or rules framed thereunder the Rupees Twenty Thousand only)
Code.

4. In case an employer repeats the offence in Imprisonment for a term 1 (one)

relation to contravention of the provisions or month and/or fine of INR 40,000/-
rules framed under the Code. (Indian Rupees Forty Thousand
only)

5. In case an employer has not maintained or has Fine of INR 10,000/- (Indian
improperly maintained records, registers and Rupees Ten Thousand only)
notices.

The Code provides an option to compound offence to first time defaulter employees.
The application of compounding shall be filed before the Gazetted Officer as notified by the
appropriate Government, to compound up to 50% (fifty percent) of the maximum fine provided for
under the offence. However, the option of compounding is not available for offences repeated within
5 (five) years from the date of first offence.

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CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986

Section 1: Preliminary
1. Short Title, Extent, and Commencement:
✓ This Act may be called the Child Labour (Prohibition and Regulation) Act, 1986.
✓ It extends to the whole of India.
✓ It came into force on such dates as appointed by the central government.
2. Objective:
✓ To prohibit the employment of children below the age of 14 years in hazardous occupations
and processes.
✓ To regulate the conditions of work for children in non-hazardous occupations.
Section 2: Definitions
1. Child: A person who has not completed their 14th year of age.
2. Establishment: Any place where work is carried out, including industrial, commercial,
agricultural, or other sectors.
3. Occupier: The person who manages or owns the establishment.
4. Employer: Any individual who employs a child directly or indirectly.
5. Workshop: Premises where manual labour is carried on, with or without power.
Part II: Prohibition of Employment of Children in Certain Occupations and Processes
Section 3: Prohibition of Employment of Children
1. Hazardous Occupations and Processes:
✓ Children below 14 years of age cannot work in occupations listed in the Schedule.
✓ Examples include mining, hazardous chemical handling, and industries involving explosives.
2. Exemptions:
✓ The prohibition does not apply to work performed as part of a family business, provided it is
not hazardous.
Section 4: Power to Amend the Schedule
❖ The central government may add or remove occupations or processes from the Schedule.
Section 5: Child Labour Technical Advisory Committee
❖ A committee is constituted to advise the government on matters related to the prohibition of child
labour.
❖ This includes adding new hazardous processes to the Schedule.
Part III: Regulation of Conditions of Work of Children
Section 6: Application of Part III
❖ This part applies to establishments where children are permitted to work (non-hazardous
industries).
Section 7: Hours and Period of Work

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1. Daily Work Limits:

❖ Children cannot work for more than 6 hours a day.
❖ This includes a mandatory rest interval after 3 hours of work.
2. Night Work Prohibition:
❖ Children are not allowed to work between 7 PM and 8 AM.
Section 8: Weekly Holidays
❖ Every child employed must be given a full day of rest each week.
Section 9: Notice to Inspector
❖ Employers must notify the relevant inspector about employing a child.
❖ This includes details of the child’s name, age, and nature of work.
Section 10: Disputes as to Age
❖ Disputes regarding the age of a child are resolved through medical certificates or other
documentary evidence.
Section 11: Maintenance of Registers
❖ Employers must maintain registers containing:
✓ Name and date of birth of every child employed.
✓ Hours and periods of work.
Section 12: Display of Abstracts
❖ Abstracts of Sections 3 and 14 must be displayed prominently in the workplace.
Section 13: Health and Safety
❖ The government can set rules to ensure the health and safety of children in permissible
occupations.
Part IV: Miscellaneous
Section 14: Penalties
1. For Prohibition Violations:
✓ Employing children in prohibited occupations/processes can result in imprisonment of up to
2 years and/or fines up to ₹50,000.
2. For Regulatory Violations:
✓ Non-compliance with regulations (e.g., working hours) can lead to penalties.
Section 15: Modified Application of Penalties
❖ The provisions of this Act override conflicting laws related to penalties.
Section 16: Procedure Relating to Offences
❖ Legal procedures are outlined to prosecute violators under the Act.
Section 17: Appointment of Inspectors
❖ Inspectors are authorized to:
✓ Inspect workplaces.
✓ Verify records.
✓ Ensure compliance with the Act.

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Section 18: Power to Make Rules

❖ The government can frame rules for implementing provisions of the Act, ensuring its adaptability
to new circumstances.
Section 19: Law Not Barred
❖ This Act’s provisions are in addition to existing laws and do not override other protective
measures.
Section 20: Power to Remove Difficulties
❖ The government can issue orders to resolve issues arising during implementation.
Section 21: Repeal and Savings
❖ This section repeals older laws inconsistent with this Act while safeguarding actions taken under
them.
The Schedule
❖ Part A: Lists hazardous occupations such as:
✓ Transporting goods by rail.
✓ Handling toxic materials.
❖ Part B: Lists hazardous processes including:
✓ Carpet weaving.
✓ Cement manufacturing.
✓ Tanning and dyeing.
Conclusion
The Act is a comprehensive framework to eliminate child labour in hazardous sectors while
regulating their work in non-hazardous areas. Through well-defined rules, penalties, and
enforcement mechanisms, it safeguards children’s rights, health, and education opportunities.

Multiple-choice questions
1. What is the minimum age of a person defined as a child under the Act?
A. 16 years
B. 15 years
C. 14 years
D. 18 years
Answer: c) 14 years

2. Which section of the Act prohibits the employment of children in hazardous occupations?
A. Section 1
B. Section 3
C. Section 7
D. Section 14
Answer: b) Section 3

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3. What is the maximum number of working hours allowed for children in permissible
occupations?
A. 8 hours
B. 6 hours
C. 5 hours
D. 4 hours
Answer: b) 6 hours

4. Which section mandates weekly holidays for employed children?

A. Section 6
B. Section 7
C. Section 8
D. Section 10
Answer: c) Section 8

5. What is the penalty for employing children in prohibited occupations or processes?

A. Fine of ₹10,00
B. Imprisonment of up to 1 year
C. Fine up to ₹50,000 and/or imprisonment up to 2 years
D. Warning notice
Answer: c) Fine up to ₹50,000 and/or imprisonment up to 2 years

6. Who is responsible for inspecting workplaces under the Act?

A. Child Labour Technical Advisory Committee
B. Inspectors appointed by the government
C. NGOs
D. The employer
Answer: b) Inspectors appointed by the government

7. Which section empowers the government to frame rules for implementing provisions of the
Act?
A. Section 14
B. Section 15
C. Section 18
D. Section 20
Answer: c) Section 18

8. Under which section can disputes regarding a child’s age be resolved?

A. Section 9
B. Section 10
C. Section 13
D. Section 17

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Answer: b) Section 10

9. What does Part A of the Schedule include?

A. List of hazardous processes like carpet weaving and cement manufacturing
B. List of hazardous occupations like railway transport and handling toxic materials
C. List of permissible activities for children
D. Guidelines for employers
Answer: b) List of hazardous occupations like railway transport and handling toxic materials

10. What is the role of the Child Labour Technical Advisory Committee?
A. To appoint inspectors
B. To recommend changes to the Schedule of hazardous occupations and processes
C. To prosecute violators
D. To provide health and safety guidelines
Answer: b) To recommend changes to the Schedule of hazardous occupations and processes

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APPRENTICESHIP ACT, 1961

Who Are Apprentices?
❖ An apprentice is a person who undergoes a structured training program under the supervision of
an employer to learn a particular trade or skill.
❖ The Apprenticeship Act, 1961 defines apprentices as individuals who sign an apprenticeship
contract and undergo training for a certain period in a designated trade.
❖ Basic Qualifications:
✓ Must be at least 14 years old for non-hazardous trades.
✓ Must be at least 18 years old for trades involving hazardous activities.
✓ Additional qualifications may apply based on the nature of the trade or category of
apprentices.
❖ Apprenticeship Contract:
✓ The terms and conditions of the apprenticeship are outlined in an apprenticeship
contract between the apprentice and employer.
✓ If the apprentice is a minor, the contract is signed by the apprentice’s guardian.
✓ The contract must comply with the provisions of the Apprenticeship Act, ensuring that the
terms are not against the Act’s provisions.
Applicability of the Act
❖ The Act applies only to industries or trades notified by the Central Government through
the Official Gazette.
✓ Once notified, the Act’s provisions will apply from the date specified in the notification.
❖ Exclusions:
✓ Special government apprenticeship programs (unless specifically notified).
✓ Internships are not covered by the Apprenticeship Act since they don’t require hands-on
training essential to the trade.
Duties of an Employer
1. Submission of Apprenticeship Contracts:
✓ Employers must send a copy of the apprenticeship contract to the Apprenticeship
Advisor within 30 days of signing it. After the government sets up an online portal, this must
be done within 7 days.
2. Reservation of Training Places:
✓ Employers must reserve training places for apprentices belonging to Scheduled
Castes, Scheduled Tribes, and Other Backward Classes (OBCs). The number of places
must be in line with the population of these categories in each state.
3. Training:
✓ Employers must ensure that apprentices receive proper training as per the apprenticeship
contract and under the provisions of the Act.
✓ If the employer cannot provide the training, he/she must hire adequately qualified
instructional staff to impart both theoretical and practical training.

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4. Compensation for Injuries:

✓ If an apprentice sustains an injury during training, the employer is responsible for
compensating the apprentice under the Workmen’s Compensation Act, 1923.
5. Wages:
✓ Employers must pay minimum prescribed wages to the apprentices. The wages should be
at least the minimum wages that were prescribed in 1970 or as per the current standards
(whichever is higher).
6. Overtime:
✓ Employers cannot require apprentices to work overtime without prior approval from
the Apprenticeship Advisor. The Advisor may approve overtime only if it’s in the apprentice’s
best interest or for public service.
7. Leave and Holidays:
✓ Apprentices are entitled to the same weekly holidays and leave that are granted to regular
employees in the establishment.
Duties of an Apprentice
1. Learning the Trade:
✓ Apprentices must learn the trade with utmost diligence and effort. They must aim to become
skilled in the trade during the apprenticeship period.
2. Attendance:
✓ Apprentices are required to attend practical and theoretical classes as specified by the
employer or a designated instructor.
3. Obeying Orders:
✓ Apprentices must follow all lawful orders of their employer and supervisors.
4. Work Hours:
✓ Apprentices must work the hours prescribed by the employer, subject to the agreed duration
of the apprenticeship period.
5. Conduct and Discipline:
✓ The apprentice’s conduct and discipline must follow the rules applicable to the employees
in the establishment.
Number of Apprentices
• The Central Government, in consultation with the Central Apprenticeship Council,
specifies the number of apprentices allowed to be employed for each trade.
• Employers must adhere to these guidelines and seek approval from the Apprenticeship
Advisor before enrolling apprentices.
Termination of Apprenticeship Contract
1. Expiration:
✓ The apprenticeship contract automatically ends when the prescribed training period expires.
2. Mutual Termination:
✓ Either party (employer or apprentice) can request the Apprenticeship Advisor for
termination of the contract. The Advisor will decide based on the parties' interests.

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Practical and Basic Training of Apprentices

❖ Employer’s Responsibility: Employers must ensure that apprentices receive sufficient practical
training in the workplace.
❖ Central Apprenticeship Advisor: The Advisor can inspect workplaces to verify that the
apprentices are receiving proper training according to the approved program.
❖ Training Costs:
✓ For employers with 250 or more workers, the costs of basic training (including stipends) for
apprentices are borne by the employer.
✓ For employers with fewer than 250 workers, the costs of basic training may be shared
between the employer and the government.
❖ Theory and Instructional Courses:
✓ Employers must provide training in related theoretical knowledge to help apprentices
become skilled in their trade.
Settlement of Disputes
❖ Disputes arising under the apprenticeship contract should be referred to the Apprenticeship
Advisor.
❖ If either party is dissatisfied with the decision of the Advisor, they can appeal to
the Apprenticeship Council, which will form a committee to settle the dispute.
Multiple-Choice Questions
1. What is the minimum age required to become an apprentice for a non-hazardous trade?
A. 12 years
B. 14 years
C. 16 years
D. 18 years
Answer: b) 14 years

2. Which of the following is NOT a duty of the employer under the Apprenticeship Act, 1961?
A. Sending apprenticeship contracts to the Apprenticeship Advisor
B. Reserving training places for Scheduled Castes, Scheduled Tribes, and OBCs
C. Ensuring apprentices receive only theoretical training
D. Compensating apprentices for injuries under the Workmen’s Compensation Act
Answer: c) Ensuring apprentices receive only theoretical training

3. Which government body determines the number of apprentices allowed for each trade?
A. State Apprenticeship Council
B. Central Government
C. Central Apprenticeship Council
D. Employers’ Association
Answer: c) Central Apprenticeship Council

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4. Which of the following is NOT covered under the Apprenticeship Act, 1961?
A. Apprenticeships in factories
B. Special Apprenticeship Training Programs of the government
C. Internships
D. Apprenticeships in mines
Answer: c) Internships

5. What is the minimum wage an employer must pay to an apprentice?

A. Fixed by the employer
B. The wage prescribed by the Apprenticeship Act
C. The wage prescribed in 1970 or the current minimum wage, whichever is higher
D. The wage prescribed by the State Government
Answer: c) The wage prescribed in 1970 or the current minimum wage, whichever is higher

6. Which Act governs the compensation for injuries sustained by an apprentice?

A. Workmen’s Compensation Act, 1923
B. Employees’ Provident Fund Act
C. Factory Act, 1948
D. Apprenticeship Act, 1961
Answer: a) Workmen’s Compensation Act, 1923

7. Who must bear the costs of basic training for apprentices in establishments with fewer than
250 workers?
A. The apprentice
B. The employer alone
C. The employer and the government (up to a limit)
D. The government alone
Answer: c) The employer and the government (up to a limit)

8. Which of the following is true about apprenticeship contracts?

A. The contract is not legally binding
B. An apprenticeship contract must be signed by the apprentice alone
C. If the apprentice is a minor, the contract must be signed by the guardian
D. The contract can be changed at any time without mutual consent
Answer: c) If the apprentice is a minor, the contract must be signed by the guardian

9. What happens if an apprenticeship contract is not fulfilled by the employer?

A. The apprentice will automatically be compensated
B. The employer must pay a fine
C. The dispute will be resolved by the Apprenticeship Advisor
D. The apprentice is required to pay penalties

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Answer: c) The dispute will be resolved by the Apprenticeship Advisor

10. Which of the following is the responsibility of the employer regarding apprentices?
A. Providing only theoretical instruction
B. Ensuring proper health and safety measures
C. Making apprentices work overtime without permission
D. Denying apprentices weekly holidays
Answer: b) Ensuring proper health and safety measures

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INTERNATIONAL LABOUR ORGANIZATION (ILO)

The International Labour Organization (ILO) is a United Nations agency focused on labour issues,
particularly international labour standards, social protection, and ensuring work opportunities for
all.
History of the ILO
❖ Establishment:
✓ Founded as an agency of the League of Nations after World War I.
✓ Established by the Treaty of Versailles in 1919.
❖ Milestones:
✓ Became the first specialized agency of the United Nations in 1946.
✓ Played a significant role during the Great Depression (1930s) in promoting labour rights.
✓ Actively contributed to decolonization and the victory over apartheid in South Africa.
✓ Awarded the Nobel Peace Prize in 1969 for promoting peace among classes and justice for
workers.
Objective of the ILO
The ILO is the only tripartite UN agency, bringing together governments, workers, and employers of
member states to:
❖ Develop and implement labour standards.
❖ Improve labour policies and create programs promoting decent work for all.
Four Strategic Objectives
1. Develop Standards and Fundamental Rights at Work:
✓ Effectuate standards and principles for labour rights.
2. Equal Access to Decent Work:
✓ Ensure equal opportunities for men and women.
3. Social Protection:
✓ Expand coverage and effectiveness of social protection systems.
4. Tripartism and Social Dialogue:
✓ Strengthen collaboration among governments, workers, and employers.
Structure of the ILO
The ILO operates on a tripartite principle and consists of three main bodies:
1. International Labour Conference
❖ Purpose:
✓ Sets the progressive policies of the ILO.
❖ Key Features:

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❖ The Conference is an annual event, which happens in Geneva, Switzerland. The conference
brings together all the representatives of the ILO. The International Labour Conferences i.e. the
General Assembly of ILO meets every year in the month of June.
❖ Function: It is a panel for the review of the important issues regarding labour.
2. Governing Body
❖ Purpose:
✓ Serves as the executive body of the ILO.
❖ Key Features:
✓ Meets three times a year in Geneva.
✓ Composed of 56 titular members and 66 deputy members.
✓ The Office is the secretariat of the Organization.
❖ Functions:
✓ Decides on the agenda and policies of the International Labour Conference.
✓ Adopts the draft program and budget for submission to the Conference.
✓ Elects the Director-General.
3. International Labour Office
❖ Purpose:
✓ Permanent secretariat of the ILO.
❖ Key Features:
❖ It decides the activities for ILO and is supervised by the Governing Body and the Director-General.
❖ The ILO member States hold periodically regional meetings to discuss the relevant issues
of the concerned regions.
❖ Each of the ILO’s 183 Member States has the right to send four delegates to the Conference: two
from government and one each representing workers and employers, each of whom may speak
and vote independently.
Functions of the ILO
1. Formulation of Policies:
✓ Adopts international labour standards, implemented as conventions.
2. Support to Member States:
✓ Assists in resolving social and labour issues.
3. Human Rights Advocacy:
✓ Works for the protection of human rights globally.
4. Research and Publication:
✓ Publishes information on social and labour issues.
5. Strengthening Trade Unions:
✓ Supports independent and democratic trade unions through the Bureau for Workers'
Activities.
6. Supervisory Role:

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✓ Monitors implementation of ILO conventions by member states through the Committee of

Experts and Tripartite Committee.
7. Complaint Registration:
✓ Addresses complaints against entities or member states violating international labour rules.
✓ Does not impose sanctions but fosters compliance.
8. International Labour Standards:
✓ Sets and promotes labour conventions, which are binding once ratified by member states.
9. ILO Global Commission on the Future of Work:
✓ Focuses on human-centred agendas and addresses challenges posed by new technology,
climate change, and demographic shifts.
Mission of the ILO
The ILO’s mission is to promote decent work for all workers through:
❖ Social dialogue.
❖ Protection measures.
❖ Employment generation.
❖ Technical and developmental support to member states.

Declaration on Fundamental Principles and Rights at Work

Adopted in 1998, it mandates member states to uphold eight fundamental principles, grouped into
four categories:
1. Freedom of Association and Collective Bargaining:
✓ Conventions 87 and 98.
2. Elimination of Forced Labour:
✓ Conventions 29 and 105.
3. Abolition of Child Labour:
✓ Conventions 138 and 182.
4. Elimination of Employment Discrimination:
✓ Conventions 100 and 111.
Follow-Up
❖ The Director-General submits a global report on one of the four categories to the tripartite
International Labour Conference.
Core Conventions of the ILO
The eight core conventions are integral to the UN Human Rights Framework. As of now, 135 member
states have ratified all eight core conventions:
1. Forced Labour Convention (No. 29).
2. Abolition of Forced Labour Convention (No. 105).
3. Equal Remuneration Convention (No. 100).
4. Discrimination (Employment and Occupation) Convention (No. 111).

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5. Minimum Age Convention (No. 138).

6. Worst Forms of Child Labour Convention (No. 182).
7. Freedom of Association and Protection of the Right to Organize (No. 87).
8. Right to Organize and Collective Bargaining (No. 98).
ILO and India
❖ Membership:
✓ India is a founding member of the ILO and became a permanent member of the Governing
Body in 1922.
✓ The first ILO office in India was established in 1928.
❖ Ratification:
✓ India has ratified six fundamental conventions but has not ratified Conventions 87 and 98 due
to statutory restrictions on government employees.
Labour Movement in India
Phases of Development
1. First Phase (1850s-1918):
✓ Early, sporadic, and disorganized protests.
✓ Key Event: Bombay, 1875, under S.S. Bengalee’s leadership, highlighting the plight of workers.
✓ Result: First Factory Commission (1875) and Factories Act (1881).
2. Second Phase (1918-Independence):
✓ More organized movements.
✓ Formation of modern trade unions.
✓ Key Event: Establishment of Bombay Mill Hands Association by M.N. Lokhande in 1890.
✓ 1920s witnessed Congress and Communists mobilizing the working class and the formation
of an all-India organization.
Features
❖ Leadership by social reformers rather than workers.
❖ Focus on welfare, not rights assertion.
❖ Organized but lacked a pan-India presence.
❖ Intellectual foundation was weak.
❖ Demands primarily focused on women and child workers.

Multiple-Choice Questions
1. When was the International Labour Organization (ILO) founded?
A. 1919
B. 1945
C. 1969
D. 1922
Answer: a) 1919

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2. What treaty led to the establishment of the ILO?

A. Treaty of Geneva
B. Treaty of Versailles
C. Treaty of Paris
D. Treaty of Berlin
Answer: b) Treaty of Versailles

3. Which year did the ILO become the first specialized agency of the United Nations?
A. 1930
B. 1946
C. 1969
D. 1928
Answer: b) 1946

4. What are the key objectives of the ILO?

A. Develop labour standards
B. Promote decent work for all
C. Ensure global trade policies
D. Both a and b
Answer: d) Both a and b

5. How many strategic objectives does the ILO have?

A. 3
B. 4
C. 5
D. 6
Answer: b) 4

6. Which body of the ILO meets annually in Geneva?

A. Governing Body
B. International Labour Conference
C. International Labour Office
D. Committee of Experts
Answer: b) International Labour Conference

7. How many titular members does the Governing Body have?

A. 50
B. 56
C. 66
D. 60

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Answer: b) 56

8. What is the purpose of the International Labour Office?

A. Acts as the permanent secretariat of the ILO
B. Elects the Director-General
C. Oversees budget allocations
D. Monitors sanctions
Answer: a) Acts as the permanent secretariat of the ILO

9. In which year did the ILO receive the Nobel Peace Prize?
A. 1946
B. 1969
C. 1980
D. 1928

Answer: b) 1969

10. What is the follow-up mechanism for the Declaration on Fundamental Principles and Rights
at Work?
A. Annual global report by the Director-General
B. Regular conferences in Geneva
C. Local committees in member states
D. Regional meetings
Answer: a) Annual global report by the Director-General

11. Which core convention relates to the elimination of child labour?

A. Convention 87
B. Convention 182
C. Convention 105
D. Convention 111
Answer: b) Convention 182

12. India became a permanent member of the Governing Body in which year?
A. 1922
B. 1928
C. 1946
D. 1930
Answer: a) 1922

13. Which body supervises the ILO’s conventions implementation?

A. Tripartite Committee

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B. Committee of Experts
C. Governing Body
D. International Labour Office
Answer: b) Committee of Experts

14. How many fundamental principles are mandated in the 1998 Declaration?
A. 8
B. 4
C. 6
D. 10
Answer: b) 4

15. Which convention ensures equal remuneration for men and women?
A. Convention 98
B. Convention 100
C. Convention 111
D. Convention 138
Answer: b) Convention 100

16. What was a significant focus of the labour movement in India during the first phase?
A. Asserting rights
B. Welfare of women and children
C. Pan-India trade union development
D. Technological advancements
Answer: b) Welfare of women and children

17. What is the role of the ILO’s Governing Body?

A. Drafting the budget
B. Setting policies for conferences
C. Electing the Director-General
D. All of the above
Answer: d) All of the above

18. Which phase of the Indian labour movement saw the establishment of trade unions?
A. 1850s-1918
B. 1918-Independence
C. 1930-1946
D. Post-Independence
Answer: b) 1918-Independence

19. What led to the first Factory Commission in India?

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A. Bombay Mill Strike of 1890

B. Leadership of S.S. Bengalee in 1875
C. Factories Act of 1881
D. The Great Depression
Answer: b) Leadership of S.S. Bengalee in 1875

20. Which of the following conventions addresses forced labour?

A. Convention 29
B. Convention 100
C. Convention 138
D. Convention 182
Answer: a) Convention 29

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