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Labour Law

This document summarizes several key Indian labor laws: 1) The Industrial Employment (Standing Orders) Act of 1946 aims to protect workers by providing uniform service conditions and minimizing industrial conflict. It applies to establishments with 100+ employees. 2) The Maharashtra Shops & Establishment Act of 1948 regulates work conditions in shops and establishments, setting limits on work hours and mandating leave. 3) The Employees' State Insurance Act of 1948 provides sickness, maternity, disability and dependent benefits to workers through contributions from employers and employees.

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55 views4 pages

Labour Law

This document summarizes several key Indian labor laws: 1) The Industrial Employment (Standing Orders) Act of 1946 aims to protect workers by providing uniform service conditions and minimizing industrial conflict. It applies to establishments with 100+ employees. 2) The Maharashtra Shops & Establishment Act of 1948 regulates work conditions in shops and establishments, setting limits on work hours and mandating leave. 3) The Employees' State Insurance Act of 1948 provides sickness, maternity, disability and dependent benefits to workers through contributions from employers and employees.

Uploaded by

Anonymous DxTrpza
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Industrial Employment (Standing Orders) Act, 1946

Objectives: It is a benevolent social legislation. It aims to achieve for the


protection of labour by providing uniform and stable service conditions.
Scope and Coverage: The Act extends to the whole of India and applies to
every industrial establishment employing 100 or more workmen or were
employed on any day of the preceeding 12 months. ( In Maharashtra 50 or
more).(URIS = Uniform service conditions, Relation maintaining between
Eemployer & employees, Industrial conflict minimizing,Statutory
recognition)
Employees covered:
The Act applies to every worker employed in the industrial establishment,
engaged in any class of work – MUSTOC or supervisory, but excluding:
i. Employed in a managerial or administrative capacity and
ii. Workers employed in supervisory capacity and drawing wages
exceeding Rs. 10000 p.m.
iii. Also does not apply to workers subject to the Army, Air Force, and
Navy Act or to persons employed in the police or prison.

• Classification of workmen:
• a. Permanent i.e. worker engaged on permanent basis and includes
the person satisfactorily completed his probationary period of
three months.( three months including breaks due to sickness,
accident, leave, lock-out, strike (not illegal) or involuntary
closure of the establishment.
• b. Probationers: employed against permanent vacancy and not
completed three months as probationer. Permanent worker on
probation may be reverted to original position.
• c. Badlis: temporary placement against absenteeism in respect
permanent or probationer.
• d. Fixed term employment.: Contractual employment.
• e. Temporary : employed for temporary nature of work likely to be
finished within a limited period.
• f. Casuals: employed for casual nature of work.
• g. Apprentices.: learner.
Standing Orders – Meaning: It is a rule of conduct for the workman working
in an establishment.
The Central and State Govt. have prescribed ‘Model SO’ to serve as an
exemplary pattern of the rules of conduct, on the basis of which the
industrial establishments can draft their own SO and get them certified by
the certifying Officers appointed for the purpose or adopt MSO with or
without amendments as their own SO.

An enquiry held by the management against its employees for certain acts of
alleged misconduct are called a ‘ Domestic enquiry’ or a ‘departmental
enquiry’. Under the existing judicial decisions, employer cannot punish its
employee for an act of misconduct without proving it and without giving
him a reasonable opportunity to defend himself in a proper domestic
enquiry.

A workman guilty of misconduct may be:


· i. Warned or censured, or
·ii. Fined subject to and in accordance with the provisions of
Payment of Wages Act, 1936 or
·iii. Suspended by an order of writing for not exceeding 4
days, or
· iv. Dismissed without notice
(WF-SD)
A workman against whom an enquiry is proposed to be held shall be given a
charge sheet clearly setting forth the circumstances appearing against him
and requiring his explanation. He shall be permitted to appear himself for
defending him or shall be permitted to be defended by a workman working
in the same department/organisation as himself or by any office bearer of a
trade union of which he is a member. Except for reasons to be recorded in
writing by the enquiry officer, the workman shall be permitted to produce
witness in his defence and cross-examine any witness on whose evidence the
charge rests. Proceedings shall be conducted in English or as per local
languages according to the choice of the Charge sheeted workman.

Subsistence Allowance(SA)
The employer is required to pay SA to a workman suspended, pending
inquiry in to charges leveled against him as under:
i. @ 50% of his wages for the first 90 days.
ii. @75% of the wages for the remaining period of suspension,
iii. Full wages for the period above 180 days.
Where the inquiry is prolonged beyond a period of 90 days or 180 days as
the case may be, for the reasons directly attributable to the workman, the SA
shall be reduced to 50% of the wages.
If no action initiated, then workman shall be entitled for full wages minus
the wages paid, for the days of suspension.
The domestic enquiry proceedings are quasi – judicial i.e.the act is not
wholly judicial (like Court proceeding). Therefore rules of natural justice
strictly follow. .
The payment of SA shall be subject to the workman concerned not taking up
any employment during the period of suspension.
Retirement: The age of retirement or superannuation of a workman shall be
as may be agreed upon between the employer and the workman under an
agreement or as specified in a settlement or award which is binding on both
the workman and employer. Where there is no such agreed age, retirement
shall be on completion of 58 years of age by the workman.
Lay-off: 2(kk) IDA
It means ‘the failure, refusal or inability of an employer on account of
shortage of coal, and power or raw material or the accumulation of stocks or
the break down of machinery or for any other reason to give employment to
a workman whose name is borne on the muster rolls of his industrial
establishment and who has not been retrenched’
Lay-off compensation entitlement:
240 days of work in a year including lay off days, authorized leaves
including sick leaves, 12 weeks maternity leave in case of women workers.
Compensation equal to fifty % of the total of the basic and DA. Workman is
entitled for compensation for all the days of lay-off unless there is an
agreement to the contrary between him and the employer to limit it to 45
days in a year.
No compensation if:
• Refuses to accept alternative employment in the same organisation
within the radius of 5 miles and without change in the wages.
• Absenteeism
• Strike or slow down of work

Maharashtra Shops & Establishment Act, 1948


• Legislation to regulate conditions of work in shops & establishments.
The 1st Act in Maharashtra was enacted in 1939- improved version-
Operation within Municipal area- may extend to other areas having
population of 25k or more.- Applicable to Shops, commercial
establishments, residential hotels, public amusement or entertainments
etc.
• Working hours: Commercial Est. 8.30am. To 9.30 pm. 9 hrs. working
(48 hrs.in a week) for employees- 1 hour interval – spread-over 11
hrs.- closed one day in a week.
• Working hrs for Restaurants (5a.m. to 12midnight) –Theatre upto
12.30 am.
• Employment of Children & Women: Child below 15 yrs – woman is
not allowed after 9.30pm.- young person 15<>17- 6 hrs.

Leave with wages- 21 days for 240 days work-5 days for 60 days of work-
accumulation 42 days- compulsory leave 4 days i.e. 26 jan, 1st may, and 2nd
oct- so, maternity benefit at applicable- maintenance of register compulsory.
ESI Act 1948-(Employees State Insurance Act,1948) Object- to secure –
Sickness, Maternity, Disablement, Medical, Dependent, benefits(SMD-MD).
– Applicable to all factories – Govt extend the application to commercial etc.
– Rs 15000 coverage for insurance
Contribution 1.75% of the wages and 4.75%- 9employer’s contribution.
contribution period and benefit period- 1st April to
31september(contribution)- 1 Jan to 30 June for CP of 1 Oct to 31st
st th st

March, BP is 1st July to 31st Dec etc.


Sickness benefit -91 days
Funeral Benefits-Rs 5K
The act does apply to a person employed through a contractor if the person
is otherwise covered by the act.

The Minimum Wages Act, 1948. ( Basic +Special Allowance+ HRA)


The object of the Act is to provide for fixing and revising minimum wages in
certain employments in order to stop sweated labour and prevent the
exploitation of unorganized labour.
The govt. has to fix and revise MW (Minimum Wages) either:
i. By appointing one or more committees and sub-committees
consisting os representatives of employers and employees and also
of independent persons to hold necessary enquiries and by taking
into consideration the advice tendered by the committee.
ii. By formulating and publishing its proposals and taking into
consideration the representations received in response to the
proposal.
 Employer is bound to pay MW fixed under the Act and it is
irrelevant whether he has the capacity to pay them or not.
Industrial Tribunal to adjudicate upon a dispute relating to the fixation of
wages of employees covered under the Act.

Dr. Shreedhar Sherigar


21.9.2017

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