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Labour Laws

The document provides an overview of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952 (EPF Act). It discusses the origin and concept of the EPF, applicability of the Act, contribution rates, schemes under the Act including EPF, EPS, and EDLI. It also summarizes some important sections of the EPF Act and provides updates on recent schemes like ABRY, PM-SYM, and PMRPY. In 3 sentences: The EPF Act established a statutory provident fund for employees in the organized sector. It requires monthly contributions from employers and employees and provides benefits like tax-free savings and pension. The Act has been amended over time and now includes schemes to promote employment

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0% found this document useful (0 votes)
26 views

Labour Laws

The document provides an overview of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952 (EPF Act). It discusses the origin and concept of the EPF, applicability of the Act, contribution rates, schemes under the Act including EPF, EPS, and EDLI. It also summarizes some important sections of the EPF Act and provides updates on recent schemes like ABRY, PM-SYM, and PMRPY. In 3 sentences: The EPF Act established a statutory provident fund for employees in the organized sector. It requires monthly contributions from employers and employees and provides benefits like tax-free savings and pension. The Act has been amended over time and now includes schemes to promote employment

Uploaded by

abdul abdul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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2023

APFC
Asst. Provident Fund Commissioner

AO/EO
EPFO UPSC

Selected EPFO Officers Team


YouTube – The Officers adda
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EPFO apfc
Assistant commissioner
LABOUR LAW
EPF & MP ACT 1952
(LATEST UPDATES + MCQ'S)
Employees Provident Fund & MP Act 1952, Latest updates + Mcq’s

Introduction–

Employees Provident Fund is established in 1952 and hence the act is named as Employees
Provident Fund & Miscellaneous Provisions Act, 1952, which extend to the whole of India, also in
Jammu & Kashmir since 31 oct 2019.

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.

Concept of Employees’ Provident Fund

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.

Origin –

The first Provident Fund Act, passed in 1925 for regulating the provident funds of some private
concerns, was limited in scope. In 1929, the Royal Commission on Labour stressed the need for
creating provident funds for industrial workers. In the Indian Labour Conference held in 1948, it was
generally agreed that the introduction of a statutory provident fund for industrial workers should be
undertaken. The Coal Mines Provident Fund Scheme was launched in 1948. The success of this fund
led to demand for its expansion to other industries.

The Constitution of India provided in 1950 a non-justiciable directive that the State shall, within the
limits of its economic capacity, make effective provisions for securing the right to work, to education
and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved
want. Accordingly, the last months of 1951 witnessed the promulgation of the Employees' Provident
Funds Ordinance, which came into effect on 5 November 1951. It was replaced by the Employees'
Provident Funds Act, which extended to the whole of India except Jammu & Kashmir. The Employees'
Provident Funds Scheme, framed under section 5 of the Act, was introduced in stages and came into
force in its entirety by 1 November 1952. The cement, cigarette, electric, mechanical and general
engineering products, iron, steel, paper, and textile industries were affected by the Act. The Acts and
Schemes framed under it are administered by the Central Board of Trustees, which consists of
representatives of Central and State governments, employers, and employees. The Board
administers a contributory provident fund, pension scheme and an insurance scheme for the
workforce engaged in the organized sector in India. The board is chaired by the Union Labour
Minister of India.

Presently, the following three schemes are in operation under the Act:
1. Employees' Provident Fund Scheme, 1952
2. Employees' Deposit Linked Insurance Scheme, 1976
3. Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971)

Applicability of the Act


 All those companies which are come under in Schedule 1 of EPF Act.
 All establishments employing 20 or more employees and in the case of theatres, 5 or
more employees.
 On all employees whose income (Basic + DA) is 15000 or less.
 Once an institution comes under the scheme, even if the number of employees is
reduced, it will come under the scheme.

EPF Act will not apply in the following cases.


 Any co-operative society in which less than 50 persons are working and the work is
being done without the help of electricity.
 Any institution established by the Central or State Governments having their own
provident fund scheme.

Rate of Contribution
Employee’s Contribution: 12% of the monthly pay
If the number of employees in the establishment are less than 20, rate of contribution
shall be 10%.

Scheme Name Employee Contribution Employer Contribution Ac No.


Employee provident fund 12% 3.67% 01
Employees Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.50% 21
EPF Administrative charges 0 0.50% 02

Profit -
1. Tax Free Savings: Under Section-80C of the Income Tax Act, there will be no income tax on
investment in PF and interest earned if you withdraw money after 5 years or after maturity.
2. High interest rate: The investment made in PF has the highest interest rate. @ 8 +%
3. After retirement, the entire amount deposited in the PF fund is received and there is also a
provision of pension if the service period is more than 10 years.
4. Emergency: PF fund can be withdrawn in case of emergency like death, marriage, building
construction, home-loan, health emergency.
5. In the event of no means of income: After leaving the job due to any reason, PF fund can be
withdrawn in case of not getting another job for 2 months.
6. Universal Access: PF account can be easily transferred from one employer to another once
the Universal Account Number is obtained. It is a 12 digit number allotted to the employee
who is contributed to EPF. It remain same throughout the life of the employee. It does not
change with the change of Job.
7. Housing Scheme for EPFO members to achieve Hon'ble Prime Minister's vision of housing for
all Indians by 2022.
8. Monthly benefits for superannuation/retirement, disability, survivor, widow, children.
9. Minimum pension on disability.
Employee Deposit Linked Insurance Scheme (EDLI), 1976-
Benefit in case of death of an employee who was a member of the scheme at the time of
death. Benefit maximum 7 lakhs.

Epf and MP Act 1952 Important Sections-


1. Short title, extent and application.
2. Definitions.
2A. Establishment to include all departments and branches.
3. Power to apply Act to an establishment which has a common provident fund with another
establishment.
4. Power to add to Schedule I.
5. Employees’ Provident Fund Schemes.
5A. Central Board.
5AA. Executive Committee.
5B. State Board.
5C. Board of Trustees to be body corporate.
5D. Appointment of officers.
5DD. Acts and proceedings of the Central Board or its Executive Committee or the State
Board not to be invalidated on certain grounds.
5E. Delegation.
6. Contributions and matters which may be provided for in Schemes.
6A. Employees’ Pension Scheme.
6C. Employees’ Deposit-linked Insurance Scheme.
7. Modification of Scheme.
7A. Determination of moneys due from employers.
7B. Review of orders passed under section 7A.
7C. Determination of escaped amount.
7D. Tribunal.
7-I. Appeals to Tribunal.
7J. Procedure of Tribunals.
7K. Right of appellant to take assistance of legal practitioner and of Government, etc., to
appoint presenting officers.
7L. Orders of Tribunal.
7-O. Deposit of amount due, on filing appeal.
7P. Transfer of certain applications to Tribunals.
7Q. Interest payable by the employer.
8. Mode of recovery of moneys due from employers.
8A. Recovery of moneys by employers and contractors.
8B. Issue of certificate to the Recovery Officer.
8C. Recovery Officer to whom certificate is to be forwarded.
8D. Validity of certificate and amendment thereof.
8E. Stay of proceedings under certificate and amendment or withdrawal thereof.
8F. Other modes of recovery.
8G. Application of certain provisions of Income-tax Act.
9. Fund to be recognised under Act 11 of 1922.
10. Protection against attachment.
11. Priority of payment of contributions over other debts.
12. Employer not to reduce wages, etc.
13. Inspectors.
14. Penalties.
14A. Offences by companies.
14B. Power to recover damages.
14C. Power of court to make orders.
15. Special provisions relating to existing provident funds.
16. Act not to apply to certain establishments.
16A. Authorising certain employers to maintain provident fund accounts.
17. Power to exempt.
17A. Transfer of accounts.
17B. Liability in case of transfer of establishment.
18. Protection of action taken in good faith.
18A. Authorities and inspector to be public servant.
19. Delegation of powers.
20. Power of Central Government to give directions.
21. Power to make rules.
22. Power to remove difficulties.

Latest Updates-

1- Aatmanirbhar Bharat Rojgar Yojana (ABRY)


2- Pradhan Mantri Shram Yogi Maan-dhan (PM- SYM)
3- Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
4- Social Security code 2020 (Separate Pdf File)

AATMANIRBHAR BHARAT ROZGAR YOJANA (ABRY)

Objectives:

As part of the Aatmanirbhar Bharat 3.0 package, the Central Govt. launched the Aatmanirbhar
Bharat Rozgar Yojana (ABRY) to incentivize creation of new employment opportunities during the
COVID-19 recovery phase by providing assistance to the employers of establishments registered with
EPFO to recruit unemployed persons including re-employment of those who were rendered
unemployed during the Pandemic. Considering the disruption caused by the consequent second
wave of Covid-19 pandemic, the Central Government has extended the validity period of registration
up to 31.03.2022.

Nature and scale of Incentive:

 Incentive for Employers of E P F O registered establishments & their New Employees with
monthly wage less than Rs.15000/-
 Incentive is inform of payment of both employees & employer’s contributions i.e. 24% of
wages in r/o new employees in Estt. employing upto 1000 employees & employee’s EPF
contributions i.e. 12% of wages in r/o new employees in estt. employing more than 1000
employees.
 The incentive is payable by the Central Government by upfront credit in the UANs of the
new employees.
Validity Period:

● For registration of eligible employers and new employees

1. From1st October,2020
2. Upto 30th June, 2021. The central government has extended the validity period of
registration by 9 months up to 31.03.2022.

● For payment of incentive inform of EPF contributions 24 Wage months from date of registration
of new employees

Pradhan Mantri Shram Yogi Maan-dhan (PM- SYM)

- A pension scheme for unorganised workers

The scheme is meant for old age protection and social security of Unorganised Workers (UW) who
are mostly engaged as rickshaw pullers, street vendors, mid-day meal workers, head loaders, brick
kiln workers, cobblers, rag pickers, domestic workers, washer men, home-based workers, own
account workers, agricultural workers, construction workers, beedi workers, handloom workers,
leather workers, audio- visual workers or in similar other occupations.
Eligibility Criteria
er (UW)

Should not be
engaged in Organized Sector (membership of EPF/NPS/ESIC)
an income tax payer
He/ She should possess
1. Aadhar card
2. Savings Bank Account / Jan Dhan account number with IFSC

Features: It is a voluntary and contributory pension scheme, under which the subscriber would receive a
minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies,
the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension
is applicable only to spouse.

Enrolment Procedure: The Unorganised Worker will be required to visit the nearest Common Services
Centre (CSC) and get enrolled for PM-SYM using Aadhaar Card and Savings bank/ Jan-Dhan account number
on self-certification basis. First subscription to be paid in cash and auto debit from next month onwards.
Later, facility will be provided where the UW can also visit the PM-SYM web portal or can
download the mobile app and self-register using Aadhar number/ savings bank account/ Jan-Dhan account
number on self-certification basis.

Enrollment agencies: The enrolment will be carried out by all the Common Services Centres in the country.

Facilitation Centres: All the Labour offices of State and Central Governments, all the branch offices of LIC, the
offices of ESIC/EPFO will act as Facilitation Centres to give full information to the Unorganised Workers (UW)
about the Scheme, its benefits and the procedure to be followed, at their facilitation desks/ help desks.

Fund Management: PM-SYM will be a Central Sector Scheme administered by the Ministry of Labour and
Employment and implemented through Life Insurance Corporation of India and CSC e-Governance Services
India Limited (CSC SPV). LIC will be the Pension Fund Manager and responsible for Pension pay out.

Exit and Withdrawal: Considering the hardships and erratic nature of employability of
Unorganised Workers (UW), the exit provisions of scheme have been kept flexible.
(i) If he/ she exits the scheme within a period of less than 10 years, the beneficiary’s share of contribution only
will be returned to him with savings bank interest rate.

(ii) If subscriber exits after a period of 10 years or more but before 60 years of age,
the beneficiary’s share of contribution along with accumulated interest as actually earned by fund or at the
savings bank interest rate whichever is higher.

(iii) If a beneficiary has given regular contributions and died due to any cause, his/her spouse will be entitled to
continue the scheme subsequently by payment of regular contribution or exit by receiving the beneficiary’s
contribution along with accumulated interest as actually earned by fund or at the savings bank interest rate
whichever is higher.

(iv) If a beneficiary has given regular contributions and become permanently disabled due to any cause before
60 years, and unable to continue under the scheme, his/ her spouse will be entitled to continue the scheme
subsequently by payment of regular contribution or exit the scheme by receiving the beneficiary’s contribution
with interest as actually earned by fund or at the savings bank interest rate whichever is higher.

(v) After the death of subscriber as well as his/her spouse, the entire corpus will be
credited back to the fund.

Default: If a subscriber has not paid the contribution continuously he/she will be allowed to
regularize his contribution by paying entire outstanding dues, along with penalty charges, if
any, decided by the Government.

Pension Pay out: Once the beneficiary joins the scheme at the entry age of 18-40 years, the beneficiary has to
contribute till 60 years of age. On attaining the age of 60 years, the
subscriber will receive by DBT the assured monthly pension of Rs.3000/- with benefit of family pension, as the
case may be.

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

What is the Pradhan Mantri Rojgar Protsahan Yojana

In order to incentivise the employers for new employment generation, the Government of India
designed the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme. Under the scheme, the
employers would be paid the EPS contribution of 8.33% for every new employment created, by the
government. The scheme has been operational since August 2016. The scheme is being
implemented by the Ministry of Labour and Employment.

Duration: The scheme would be operated for three years and the Central Government will pay 8.33% EPS
employers’ contribution for the next three years. That is, all new employees who are eligible will be
covered under this scheme till 2019-20.

PMRPY Eligibility Criteria

All establishments registered with Employees’ Provident Fund Organisation (EPFO) under EPF Act
1952 can apply for availing benefits under the scheme. They need to have a valid Labour
identification Number (LN) allotted to them under the Shram Suvidha Portal.

PMRPY Benefits

This scheme offers social security benefits of the organised sector to workers. Apart from this, there
are the following twin benefits of implementing this scheme:
1- The employer is incentivised for increasing the employment base of workers in the
establishment.
2- A huge number of workers would find jobs in such establishments.

Recent updates to the scheme:

The Cabinet Committee on Economic Affairs chaired by the Prime Minister has now given approval
for enhancing the scope of the scheme. Now the government will contribute full admissible
contribution for the first 3 years from the date of registration of the new employee for all the sectors
inclusive of the existing beneficiaries for their remaining period of 3 years.

MCQ’S

1. Employees’ Provident Funds Appellate Tribunal was constituted under Section ……. the
this act
A. 7D
B. 6A
C. 7C
D. 6D
Ans : A

2. What is the present wage limit to be eligible to be covered under the Employees’
Provident Funds and Miscellaneous Provisions Act, 1952?
A. Rs. 6,000
B. Rs. 6,500
C. Rs. 15,000
D. Rs. 12,500
Ans : C

3. The Act is applicable to every establishment which is a factory engaged in any industry
specified in Schedule I and in which ——– twenty persons are employed
A. 20
B. 10 or more
C. 20 or more
D. 15 or more
Ans : C
4. What are the emoluments earned by the employees which are not not come under the
definition of ‘Basic Wages’ in Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952,
(i) 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
(ii)The cash value of any food concession
(iii) Any dearness allowance, house-rent allowance, overtime allowance, bonus,
commission or other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
(iv) Any presents made by the employer;
A. i & iii
B. ii & iv
C. i, ii & iii
D. ii, iii & iv
Ans : D

5. The chairman and members of Central Board constituted under Employees Provident
Fund are appointed by
A. Central Government
B. State Government
C. Supreme Court
D. None of the above
Ans : A

6. Under this act, how many members are appointed by the Central Government in
Central Board representing employees in the establishments to which the Scheme applies
A. 15
B. 10
C. 12
D. 20
Ans : B

7. The accounts of the Central Board is audited annually by


A. Central Provident Fund Commissioner
B. Any auditor appointed by Central Government
C. Comptroller and Auditor-General of India
D. Any auditor appointed by the Chairman of Central Board
Ans : C
8. The contribution which shall be paid by the employer to the Fund shall be
A. 5%
B. 7%
C. 12% (10% in special cases 12% if CG impose to employer)
D. 10 %
Ans : C

9. An employer who contravenes or makes default in complying with the provisions of


section 6 of this act, shall be punishable with imprisonment for a term which may extend
to —– years
A. 3
B. 2
C. 1
D. 5
Ans : A

10. This Act shall not apply to any establishment registered under the Co-operative
Societies Act, 1912 (2 of 1912), employing less than ——- persons and working without the
aid of power
A. 20
B. 50
C. 100
D. 70
Ans : B

11. No court inferior to that of ………………….class shall try any offence under this Act
A. High Court
B. Musiff Court
C. Presidency Magistrate or a Magistrate of the first class
D. Sureme Court
Ans : C

12. Which of the following statements about Central Board are true?
(i) The Central Provident Fund Commissioner is the Ex officio member of the Central Board
(ii) The Central Board shall maintain proper accounts of its income and expenditure in
such form and in such manner as the Central Government may, after consultation with the
Comptroller and Auditor-General of India, specify in the Scheme
(iii) Central Board shall submit annual report of its work and activities to the Central
Government
A. i & ii
B. ii & iii
C. i 7& ii
D. i , ii & iii
Ans : D
13. Which of the following statements about The Employees’ Provident Funds and
(Miscellaneous Provisions) Act are true?
a. The Act is not applicable to cooperative societies employing less than 50 persons
working with the aid of power.
b. It makes provision for pension scheme, including family pension.
c. There is no wage limit to be covered under the Act.
d. The Act has a provision relating to Employees’ Deposit-linked Insurance Scheme.
A. a, b & d
B. a & c
C. b, c & d
D. a, c & d
Ans : A

14. Under this act, “Insurance Fund” means ……………


A. Medical Insurance Fund
B. Deposit Linked Insurance Scheme
C. Unit Linked Insurance Plan
D. Employees’ Group Accident Insurance
Ans : B

15. The Central Government has amended the ceiling for contributions under the
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) and the
Employees’ Provident Fund and Miscellaneous Provisions Scheme, 1952 (EPF Scheme)
from ———– to ———–, with effect from 1 September 2014.
A. Rs. 7500/- to Rs. 15000/-
B. Rs. 6500/- to Rs.13000/-
C. Rs. 6500/- to Rs.15000/-
D. Rs. 5000/- to Rs.12000/-
Ans : C

16. When did The Employees Provident Fund & Miscellaneous Provisions Act , come into
force?
A. 01 April 1956
B. 01 March 1957
C. 01 May 1950
D. 4 March 1952
Ans : D

17. Which section of The Employees Provident Fund & Miscellaneous Provisions Act 1952
deals with Priority of payment of contributions over other debts.?
A. Section 12 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
B. Section 11 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
C. Section 14 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
D. Section 20 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
Ans : B

18. Which section of the Employees Provident Fund & Miscellaneous Provisions Act 1952
deals with Authorising certain employers to maintain provident fund accounts_ ?
A. Section 16A of the Employees Provident Fund & Miscellaneous Provisions Act 1952
B. Section 14 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
C. Section 13A of the Employees Provident Fund & Miscellaneous Provisions Act 1952
D. Section 18 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
Ans : A

19. Section 15 of the Employees Provident Fund & Miscellaneous Provisions Act 1952deals
with_______?
A. Power to exemp
B. Special provisions relating to existing provident funds.
C. Power to recover damages
D. Power to make rules.
Ans : B

20. Mode of recovery of moneys due from employers, is provided in section____ of the
Employees Provident Fund & Miscellaneous Provisions Act 1952
A. Section 5 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
B. Section 2 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
C. Section 8 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
D. Section 3 of the Employees Provident Fund & Miscellaneous Provisions Act 1952
Ans : C

21. PF act is applicable to an establishment engaged in any industry specified in ………


A. Schedule II
B. Hazardous Industries List
C. Schedule IX
D. Schedule I
Ans : D

22. Minimum ……….. persons must be employed in as establishment for the applicability of
the PF act.
A. 15
B. 20
C. 35
D. 50
Ans : B
23. The term “Appropriate Government” is defined in which section of the PF Act?
A. Section 2(a)
B. Section 2 (b)
C. Section 2 (d)
D. Section 2 (e)
Ans : A

24. According to Section 2(a) which is the appropriate Government for a mine in a given
state?
A. State Government
B. Central Government
C. Both (A) and (B)
D. None of these
Ans : B

25. Section 2(aa) of the PF act defines the term ……………


A. Basic Wages
B. Authorised Officer
C. Government
D. None of these
Ans : B

26. Deputy Provident Fund Commissioner is an authorised officer.


A. True
B. False
Ans : A

27. The term “Basic Wages” is defined in which section of the Provident Fund Act?
A. Section 2(g)
B. Section 2(d)
C. Section 2(b)
D. None of these
Ans : C

28. Bonus is part of Basic Wages as defined in the respective section in the PF Act.
A. True
B. False
Ans : B
29. The term contribution is defined in the section ………
A. Section 2-bb
B. Section 2-bc
C. Section 2-cc
D. Section 2-c
Ans : D

30. Section 2(d) of the Provident Fund Act defines ………


A. Hazardous Process
B. Employee
C. Employment
D. Controlled Industry
Ans : D

31. The term “Employer” is defined in the section ……….. of the PF Act.
A. 2(e)
B. 2(g)
C. 2(f)
D. 2(m)
Ans : A

32. Can an agent, of the owner of a factory, be termed as an employer?


A. Yes
B. No
Ans : A

33. The term “Employee” is defined in the section …… of the PF Act, 1952.
A. 2(ab)
B. 2(g)
C. 2(f)
D. 2(d)
Ans : C

34. A person employed through a contractor will not be considered as an employee of the
establishment.
A. True
B. False
Ans : B

35. A person engaged as an apprentice under the Apprentices Act, 1961 will not be
considered as an employee.
A. True
B. False
Ans : A

36. The term “Exempted Employee” is defined under section ……. of the PF Act, 1952
A. 2 (gg)
B. 2(hh)
C. 2(ff)
D. 2(cc)
Ans : C

37. An employee is said to be exempted if the exemption is granted under section………


A. 26
B. 17
C. 14
D. 20
Ans : B

38. The term “Exempted Establishment” is defined under which section of the EPF Act,
1952?
A. 2(aaa)
B. 2(ee)
C. 2(j)
D. 2(fff)
Ans : D

39. Section 2(g) of the PF Act defines ………………


A. Non-Exemption
B. Exemption
C. Factory
D. Exempted Job
Ans : C

40. The term “Fund” is defined under section ………. of the PF Act, 1952
A. 2(i)
B. 2(h)
C. 2(k)
D. None of these
Ans : B
41. Under the PF Act, 1952 “Insurance Fund” means ……………
A. Unit Linked Insurance Plan
B. Deposit Linked Insurance Fund
C. Employees’ Group Accident Insurance
D. Medical Insurance Fund
Ans : B

42. The scheme defined under section 2(i-b) of the PF Act, 1952 is ……………..
A. Pension Scheme
B. Provident Fund Scheme
C. Family Pension Scheme
D. Insurance Scheme
Ans : D

43. The section 2(i-a) of PF Act, 1952 defines………..


A. Member
B. Insurance
C. Insurance Fund
D. None of these
Ans : C

44. The Insurance Scheme is framed under sub-section (1) of the Section ……… of the PF
Act, 1952.
A. 8-A
B. 7-B
C. 6-C
D. 5-D
Ans : C

45. The term “Member” is defined in the section ………… of the PF Act, 1952.
A. 2(j)
B. 2(u)
C. 2(m)
D. 2(p)
Ans : A

46. Section 2(k-A) of the PF Act, 1952 defines …………..


A. Occupier of the factory
B. Pension Fund
C. Establishment
D. Pension Scheme
Ans : B

47. The Employees’ Pension Fund is established under sub-section (2) of the section ………
A. 8-A
B. 7-A
C. 6-A
D. 5-A
Ans : C

48. Section 2(kb) of the PF Act, 1952 defines ……….


A. Recovery Amount
B. Recovery Office
C. Recover Officer
D. Repayment Amount
Ans : C
49. Section 2(ll) of the PF Act, 1952 defines …………
A. Superannuation
B. Annual Salary
C. Scheme Policies
D. Recovery
Ans : A

50. The Employees’ Provident Funds Appellate Tribunal which is constituted under sec 7-D
is defined under which section?
A. 2(j)
B. 2(k)
C. 2(l)
D. 2(m)
Ans : D

51. Which of the following statements about The Employees’ Provident Funds and
(Miscellaneous Provisions) Act are true?
a. The Act is not applicable to cooperative societies employing less than 50 persons
working with the aid of power.
b. It makes provision for pension scheme, including family pension.
c. There is no wage limit to be covered under the Act.
d. The Act has a provision relating to Employees’ Deposit-linked Insurance Scheme.
A. a, b & d
B. a & c
C. a, c & d
D. b, c & d
Ans : A
52. What is the present wage limit to be eligible to be covered under the Employees’
Provident Funds and Miscellaneous Provisions Act, 1952?
A. Rs. 12,500
B. Rs. 15,000
C. Rs. 6,500
D. Rs. 6,000
Ans : B

53. What are the emoluments earned by the employees which are not not come under the
definition of ‘Basic Wages’ in Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952
(i) 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
(ii)The cash value of any food concession.
(iii) Any dearness allowance, house-rent allowance, overtime allowance, bonus,
commission or other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
(iv) Any presents made by the employer;
A. i & iii
B. ii, iii & iv
C. i, ii & iii
D. ii & iv
Ans : B

54. The Act is applicable to every establishment which is a factory engaged in any industry
specified in Schedule I and in which ——– twenty persons are employed
A. 15 or more
B. 20 or more
C. 10 or more
D. 20
Ans : B

55. The chairman and members of Central Board constituted under Employees Provident
Fund are appointed by
A. Supreme Court
B. State Government
C. Central Government
D. None of the above
Ans : C
56. Under this act, how many members are appointed by the Central Government in
Central Board representing employees in the establishments to which the Scheme applies
A. 15
B. 10
C. 12
D. 20
Ans : B

57. The accounts of the Central Board is audited annually by


A. Central Provident Fund Commissioner
B. Any auditor appointed by Central Government
C. Comptroller and Auditor-General of India
D. Any auditor appointed by the Chairman of Central Board
Ans : C

58. The contribution which shall be paid by the employer to the Fund shall be
A. 5%
B. 7%
C. 12%
D. 10%
Ans : C

59. An employer who contravenes or makes default in complying with the provisions of
section 6 of this act, shall be punishable with imprisonment for a term which may extend
to _____ years
A. 1
B. 2
C. 3
D. 5
Ans : C

56. This Act shall not apply to any establishment registered under the Co-operative
Societies Act, 1912 (2 of 1912), employing less than ——- persons and working without the
aid of power
A. 100
B. 70
C. 50
D. 20
Ans : C
61. No court inferior to that of ………………….class shall try any offence under this Act
A. Sureme Court
B. Presidency Magistrate or a Magistrate of the first class
C. Musiff Court
D. High Court
Ans : B

62. Which of the following statements about Central Board are true?
(i) The Central Provident Fund Commissioner is the Ex officio member of the Central Board
(ii) The Central Board shall maintain proper accounts of its income and expenditure in
such form and in such manner as the Central Government may, after consultation with the
Comptroller and Auditor-General of India, specify in the Scheme
(iii) Central Board shall submit annual report of its work and activities to the Central
Government
A. i & ii
B. i & iii
C. ii & iii
D. i, ii & iii
Ans : D

63. Employees’ Provident Funds Appellate Tribunal was constituted under Section ……. the
this act
A. 6D
B. 7C
C. 6A
D. 7D
Ans : D

64. Under this act, “Insurance Fund” means ……………


A. Employees’ Group Accident Insurance
B. Unit Linked Insurance Plan
C. Deposit Linked Insurance Scheme
D. Medical Insurance Fund
Ans : C
65. The Central Government has amended the ceiling for contributions under the
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) and the
Employees’ Provident Fund and Miscellaneous Provisions Scheme, 1952 (EPF Scheme)
from __________ to __________, with effect from 1 September 2014.
A. Rs. 5000/- to Rs.12000/-
B. Rs. 6500/- to Rs.15000/-
C. Rs. 6500/- to Rs.13000/-
D. Rs. 7500/- to Rs. 15000/-
Ans : B
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EPFO apfc
Assistant commissioner
LABOURLAW
ESIC ACT 1948
(LATEST UPDATES + MCQ'S)
EMPLOYEES' STATE INSURANCE ACT 1948, Latest Updates + MCQ’S

History –

The Employees' State Insurance Act, 1948, is a pioneering measure in the field of social insurance in
our country. The subject of health insurance for industrial workers was first discussed in 1927 by the
Indian Legislature, when the applicability of the Conventions adopted by the International Labour
Conference was considered by the Government of India. The Royal Commission on Labour, in its
report (1931), stressed the need for health insurance for workers in India. One of the earlier
decisions of the Labour Ministers' Conferences between 1940 and 1942 was to invite an expert to
frame a scheme of health insurance for workers. In pursuance thereof, the responsibility for
preparing a detailed scheme of health insurance for industrial workers was entrusted in March 1943
to Prof. B.P. Adarkar who submitted his report in December 1944. This was considered by the
Government of India and State governments as well as other interested parties. The Adarkar Plan
and various other suggestions emerged finally in the form of Workmen's State Insurance Bill 1946,
which was then referred to a Select Committee in November 12, 1947: The Select Committee
extended the cover-age to all the employees in factories, and changed its name from Workmen's
State Insurance Bill to Employees' State Insurance Bill The Employees' State Insurance Act came into
force from 19th April 1948. The scheme framed under the Act aims at providing for certain cash
benefits to employees in the event of sickness, maternity, employment injury, and medical facilities
in kind, and contains provisions for certain other matters having bearing thereon.

Benefits under ESI Scheme

The main benefits provided under ESI Scheme are:

• Sickness Benefit

• Disablement Benefit

• Dependants’ Benefit

• Maternity Benefit

• Medical Benefit

Besides the above, other benefits being provided to the beneficiaries are Confinement Expenses,
Funeral Expenses, Vocational Rehabilitation, Physical Rehabilitation, Unemployment Allowance
(RGSKY) and Skill Upgradation Training.

Coverage

Applicability

Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas
including preview theatres, road-motor transport undertakings and newspaper establishments
employing 10* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and
Educational institutions employing 10* or more persons in certain States/UTs.
*Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra
and Chandigarh. The existing wage limit for coverage under the Act is Rs.21,000/- per month (w.e.f.
01/01/2017).

Areas covered

The ESI Scheme is now notified in 526 Districts in 34 States and Union Territories, which include 346
complete District, 95 District Headquarters and in 85 Districts. The scheme is implemented in
centers. The scheme is yet to be implemented in Arunachal Pradesh and Lakshadweep.

Contribution
Currently, the employee's contribution rate (w.e.f. 01.07. 2019) is 0.75% of the wages and
that of employer's is 3.25% of the wages paid/payable in respect of the employees in every
wage period. Employees in receipt of a daily average wage upto Rs. 137/- are exempted
from payment of contribution
Information-Benefits

The section 46 of the Act envisages following six social security benefits :-

(a) Medical Benefit : Full medical care is provided to an Insured person and his family members from
the day he enters insurable employment. There is no ceiling on expenditure on the treatment of an
Insured Person or his family member. Medical care is also provided to retired and permanently
disabled insured persons and their spouses on payment of a token annual premium of Rs.120/- .

 System of Treatment
 Scale of Medical Benefit
 Benefits to Retired Ips (insured persons)
 Administration of Medical Benefit in a State
 Domiciliary treatment
 Specialist consultation
 In-Patient treatment
 Imaging Services
 Artificial Limbs & Aids
 Special Provisions
 Reimbursement

(b) Sickness Benefit(SB) : Sickness Benefit in the form of cash compensation at the rate of 70 per
cent of wages is payable to insured workers during the periods of certified sickness for a maximum
of 91 days in a year. In order to qualify for sickness benefit the insured worker is required to
contribute for 78 days in a contribution period of 6 months.

1. Extended Sickness Benefit(ESB) : SB extendable up to two years in the case of 34 malignant and
long-term diseases at an enhanced rate of 80 per cent of wages.

2. Enhanced Sickness Benefit : Enhanced Sickness Benefit equal to full wage is payable to insured
persons undergoing sterilization for 7 days/14 days for male and female workers respectively.
(c) Maternity Benefit (MB) : Maternity Benefit for confinement/pregnancy is payable for Twenty Six
(26) weeks, which is extendable by further one month on medical advice at the rate of full wage
subject to contribution for 70 days in the preceding Two Contribution Periods.

(d) Disablement Benefit

Temporary disablement benefit (TDB) : From day one of entering insurable employment &
irrespective of having paid any contribution in case of employment injury. Temporary Disablement
Benefit at the rate of 90% of wage is payable so long as disability continues.

Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of
monthly payment depending upon the extent of loss of earning capacity as certified by a Medical
Board

(e) Dependants Benefit(DB) : DB paid at the rate of 90% of wage in the form of monthly payment to
the dependants of a deceased Insured person in cases where death occurs due to employment
injury or occupational hazards.

(f) Other Benefits :

 Funeral Expenses : An amount of Rs.15,000/- is payable to the dependents or to the person


who performs last rites from day one of entering insurable employment.
 Confinement Expenses : An Insured Women or an I.P.in respect of his wife in case
confinement occurs at a place where necessary medical facilities under ESI Scheme are not
available.
 In addition, the scheme also provides some other need based benefits to insured workers.
 Vocational Rehabilitation :To permanently disabled Insured Person for undergoing VR
Training at VRS.
 Physical Rehabilitation : In case of physical disablement due to employment injury.
 Old Age Medical Care :For Insured Person retiring on attaining the age of superannuation or
under VRS/ERS and person having to leave service due to permanent disability insured
person & spouse on payment of Rs. 120/- per annum.

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.

Atal Beemit Vyakti Kalyan Yojana (ABVKY) :

This scheme is a welfare measure for employees covered under Section 2(9) of ESI Act, 1948, in the
form of relief payment upto 90 days, once in a lifetime. The Scheme was introduced w.e.f. 01-07-
2018 on pilot basis for a period of two years initially. The scheme has now been extended for
another one year i.e. from 1st July, 2020 to 30th June, 2021. It has also been decided to enhance the
rate of unemployment relief under the scheme to 50% of wages from earlier rate of 25% along with
relaxation in eligibility conditions, provided the Insured Person should have been in insurable
employment for a minimum period of two years immediately before her/his unemployment and
should have contributed for not less than 78 days in the contribution period immediately preceding
to unemployment and minimum 78 days in one of the remaining three contribution periods in two
years prior to unemployment. In a significant relaxation, relief shall become due for payment after
30 days from date of unemployment and claim can be submitted directly to the designated ESIC
Branch Office by the worker. The enhanced benefit and relaxed conditions are applicable during the
period 24th March 2020 to 31st December 2020. Claims to get the relief can be made online at
website www.esic.in along with submission of the physical claim with an affidavit, photocopy of
Aadhaar Card and Bank Account details to the designated ESIC Branch Office by post or in person.

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 25,000/-.

Employer’s contribution is paid by the Central Government for 3 years.

Benefits & Contributory Conditions :

An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity
as a fixed percentage of the workers wages, whereas, they are provided social security benefits
according to individual needs without distinction.

Cash Benefits are disbursed by the Corporation through its Branch Offices (BOs) / Pay Offices (POs),
subject to certain contributory conditions.

Latest Updates- (Separate Pdf File)

1- Social Security code 2020


MCQ’S

1. Which of the following labour legislations is implemented only by the Central


Implementation Machinery?
A. Trade Unions Act
B. Maternity Benefit Act
C. Industrial Disputes Act
D. Employees’ State Insurance Act
Answer D

2. Under Section 2(12) the Act is applicable to non-seasonal factories employing———-


persons
A. 10 or more
B. 25 or more
C. 20 or more
D. 5 or more
Answer A

3. Employees’ Deposit Linked Insurance Scheme was introduced in the year


A. 1976
B. 1961
C. 1923
D. 1948
Answer A

4. The Payment of Gratuity Act was introduced in the year


A. 1961
B. 1923
C. 1972
D. 1976
Answer C

5. The Maternity Benefit Act was introduced in the year


A. 1961
B. 1923
C. 1976
D. 1948
Answer A
6. Which of the following benefits is covered under social security schemes?
A. Medical facilities
B. Retirement benefits
C. Compensation facilities
D. All of the above
Answer D

7. Making peace with employees by fulfilling all their needs without any resistance is the
essence of the
A. Appeasement theory
B. Policing theory
C. Benevolence theory
D. Religious theory
Ans A

8. The age of dependent for obtaining dependent’s benefit under the Employees State
Insurance Act has now been enhanced from 18 years to
A. 22 years
B. 24 years
C. 20 years
D. 25 years
Ans D

9. Employees who are getting a daily average wages up to ________ are exempted from
contributing employees’ share of ESI contribution.
A. Rs 70
B. Rs 384.60
C. Rs 100
D. Rs 50
Ans C

10. The employer’s share of contribution under the ESI Act is


A. 8.33 %
B. 1.75 %
C. 12 %
D. 3.25%
Ans D

11. As per the latest amendment under the ESI Act, 1948 medical treatment is now
available to persons under voluntary retirement scheme also.
A. True
B. False
C. Partly True
D. The Act is silent
Answer A

12. Which of the following legislations in India is governed by a tripartite organisation


consisting of representatives of labour, management and Government?
A. Payment of Bonus Act
B. Industrial Disputes Act
C. ESI Act
D. Maternity Benefit Act
Answer C

13. What is the wage limit for employees to be covered under the Employee State
Insurance Act as per the latest amendment?
A. Rs. 25,000 per month
B. Rs. 18,000 per month
C. Rs. 21,000 per month
D. Rs. 20,000 per month
Answer C

14. Employees’ share of contribution under the ESI Act is


A. 0.75 %
B. 4.75%
C. 12%
D. 8.33%
Answer A

15. Which of the following legislations extends some sort of benefit to retired employees
also?
A. Employees’ State Insurance Act
B. Payment of Bonus Act
C. Maternity Benefit Act
D. Employees’ Compensation Act
Answer A

16. ’Unemployment allowance’ payable is stated in


A. Factories Act, 1948
B. Unorganised Sector Workers Social Security Act, 2005
C. Employee State Insurance Act, 1948
D. None of the above
Answer C
17. Which of the following legislations was based on the recommendations of the B.P.
Adarkar Committee Report?
A. Employees’ State Insurance Act, 1948
B. Employees’ Provident Funds Act
C. Maternity Benefit Act
D. Employees’ Compensation Act
Answer A

18. Who is an ‘exempted employee’ under the Employee’s state Insurance Act, 1948?
A. Employee who is not liable under the Act to pay the employee’s contribution
B. Minor employee who is not liable under the Act to pay the employee’s contribution
C. Employee who is minor
D. None of the above
Answer A

19. The Workmen’s Compensation Act, 1923, the Maternity Benefit Act, 1965 and the
Employees State Insurance Act, 1948
A. If the Workmen’s Compensation Act and the Maternity Benefit Act are applicable, the
Employees State Insurance Act is not applicable.
B. Together can be applicable
C. The Maternity Benefit Act and the Employees State Insurance Act can be applicable at a
time
D. The Workmen’s Compensation Act and the Employees State Insurance Act can be
applicable at a time.
Answer A

20. What is the content of the Schedule I of the ESI Act, 1948?
A. List of occupational diseases.
B. List of injuries deemed to result in permanent total disablement.
C. List of injuries deemed to result in permanent partial
disablement.
D. None of the above
Answer D

21. Under ESI Act, 1948 a member of the Corporation, Standing Committee or the Medical
Council shall cease to be a member of the body if he fails to attend
A. Three consecutive meetings
B. Three meetings intermittently
C. Four consecutive meetings
D. Two consecutive meetings
Answer A
22. Which of the following benefits have not been provided under the Employee’s State
Insurance Act, 1948?
A. Disablement Benefit
B. Children’s’ Allowance
C. Sickness Benefit
D. Unemployment Allowance
Answer B

23. Which one of the following Labour Legislations provides comprehensive benefits to
industrial workers in India?
A. Maternity Benefit Act
B. Employees’ State Insurance Act
C. Employee Provident Funds Act
D. Employees’ Compensation Act
Answer B

24. An employer is liable to pay his contribution in respect of every employee and deduct
employees contribution from wages bill and shall pay these contributions at the specified
rates to the Corporation within ———–days of the last day of the Calendar month in
which the contributions fall due.
A. 21
B. 30
C. 7
D. 15
Answer A

25. Dependants’ Benefit paid at the rate of ———-% of wage in the form of monthly
payment to the dependants of a deceased Insured person in cases where death occurs
due to employment injury or occupational hazards.
A. 80%
B. 50%
C. 90%
D. 75%
Answer C

26. If an Insured Women or an I.P. in respect of his wife confinement occurs at a place
where necessary medical facilities under ESI Scheme are not available, how much amount
shall be payable per case for two confinements only.
A. Rs. 5000/-
B. Rs. 7500/-
C. Rs. 2500/-
D Rs.10000/-
Answer A
27. How much amount is payable to the dependents for funeral expenses?
A. Rs.15,000/-
B. Rs.10000/-
C. Rs.12000/-
D. Rs.5000/-
Answer B

28. Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is
A. Rs.20000/-
B. Rs.50000/-
C. Rs.15000/-
D. Rs.25000/-
Answer D

29. Maternity Benefit for confinement/pregnancy is payable for three months, which is
extendable by further one month on medical advice at the rate of full wage subject to
contribution for ——– days in the preceding year.
A. 65 days
B. 70 days
C. 91 days
D. 75 days
Answer B

30. Enhanced Sickness Benefit equal to full wage is payable to insured persons undergoing
sterilisation for ——— days for male and ________ female workers respectively.
A. 7 days and 14 days
B. 14 days and 7 days
C. 5 days and 10 days
D. 6 days and 14 days
Answer A

31. Extended Sickness Benefit(ESB) is extendable upto two years in the case of 34
malignant and long-term diseases at an enhanced rate of ——– percent of wages.
A. 90%
B. 85%
C. 75%
D. 80%
Answer D
32. In order to qualify for sickness benefit, the insured worker is required to contribute for
——- days in a contribution period of 6 months.
A. 78 days
B. 60 days
C. 75 days
D. 91 days
Answer A

33. Sickness benefit in the form of cash compensation at the rate of 70 per cent of wages
is payable to insured workers during the periods of certified sickness for a maximum of —
— days in a year.
A. 90 days
B. 91 days
C. 75 days
D. 100 days
Answer B

34. Medical care is provided to retired and permanently disabled insured persons and
their spouses on payment of a token annual premium of ———-
A. Rs.125/-
B. Rs.100/-
C. Rs.120/-
D. Rs.75/-
Answer C

35. The State Governments, as per provisions of the Act, contribute 1/8th of the
expenditure of medical benefit within a per capita ceiling of ——— per Insured Person per
annum.
A. Rs.1000/-
B. Rs.2000/-
C. Rs.850/-
D. Rs.1500/-
Answer D

36. The employee welfare facilities available outside the organisation are called
A. extra-mural facilities
B. extravagance
C. intra-mural facilities
D. None of the above
Answer A
37. The employee welfare facilities available inside the organization are called
A. intra-mural facilities
B. extravagance
C. extra-mural facilities
D. None of the above
Answer A

38. Who among the following has the responsibility for employee welfare?
A. State government
B. Central government
C. Employers
D. All of the above
Answer D

39. An inclination to do something good for others can influence the employers to
undertake welfare facilities. This is the assumption of the
A. Benevolence theory
B. Appeasement theory
C. Policing theory
D. Religious theory
Answer A

40. In the absence of statutory requirements, the employers may not provide even the
basic facilities to the employees. This is the basic assumption of the
A. Religious theory
B. Policing theory
C. Benevolence theory
D. None of the above
Answer B
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EPFO apfc
Assistant commissioner
LABOUR LAW
Maternity Benefit Act-1961
(LATEST UPDATES + MCQ'S)
Maternity Benefit Act 1961, Latest Updates + MCQ’S

Introduction
The Maternity Benefit Act, 1961 is a legislation that protects the employment of women at
the time of her maternity. It entitles women employees of ‘maternity benefit’ which is fully
paid wages during the absence from work and to take care of her child. The Act is applicable
to the establishments employing 10 or more employees. The Maternity Benefit Act, 1961
has been amended through the Maternity (Amendment) Bill 2017. The provisions of the
Maternity Benefit (Amendment) Act, 2017 (“Amendment Act”) came into effect on April 1,
2017, and the provision with regard to crèche facility (Section 11 A) came into effect with
effect from July 1, 2017.
Applicability
Upon reading Section 2 along with Section 3 (e) of Maternity Benefits Act, 1961 (“Act”), it
can be safely concluded that the Act is applicable to establishments such as factories,
(“factory” as defined in the Factories Act, 1948), mines (“mine” as defined in the Mines Act,
1952) and plantations (“plantation” means a plantation as defined in the Plantations Labour
Act,1951).
The Maternity Benefit Act also applies to establishments belonging to Government and
establishments wherein persons are employed for the exhibition of equestrian, acrobatic
and other performances as per section 2(b). The said Act is also applicable to every shop or
establishment defined under law, wherein ten or more persons are employed on a day
during the preceding twelve months and which is applicable in relation to shops and
establishments in a particular state.
Thus, considering the above, in Delhi, the Act applies to all “establishments” and
“commercial establishments” which are covered under the ambit of Section 2(9) and 2(5)
respectively of the Delhi Shops and Establishments Act, 1954.
Further, as per the proviso of Section 2 of the Maternity Benefit Act, the State Government
may, subject to obtaining approval from the Central Government, declare that the
provisions of Act be applicable to any other establishment or class of establishments which
are either carrying out industrial, commercial or agricultural activities or otherwise any
other activity.
It may be noted that the provisions contained in this Act, save as otherwise provided in
sections 5A and 5B, shall not be attracted to any factory or other establishments to which
the provisions of the Employees’ State Insurance Act, 1948, as per Section 2(2) of the Act.
Further, as per Section 26 of the Act, the appropriate Government has the power to exempt
through a notification, an establishment, from the ambit of the Act subject to the conditions
laid down in Section 26.
Eligibility -
A woman must be working as an employee in an establishment for a period of at least 80
days in the past 12 months to be entitled to maternity benefit under the provisions of the
Maternity Benefit Act.
Amendments to the Maternity Benefit Act, 1961
The amendments to Maternity Benefit Act, 1961 are as follows:
• Increase Maternity Benefit from 12 weeks to 26 weeks for two surviving children and 12
weeks for more than two childern.
• 12 weeks Maternity Benefit to a 'Commissioning mother' and 'Adopting mother'.
• Facilitate'Work from home'.
• Mandatory provision of Creche in respect of establishment having 50 or more employees.
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.
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 sq.ft. 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?
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.
Further, it can also be inferred that an “establishment” excluded under Section 2(2) or
excluded by notification under Section 26 of the Act, is not obliged to set up a crèche as
mandated.
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.
Consequently, crèches are mandatory in all establishments covered under Delhi Shops and
Establishment Act, 1954. As per Section 2(5) of the 1954 Act, “commercial establishment”
means any premises wherein any trade, business or profession or any work in connection
with, or incidental or ancillary thereto is carried on..”. Further, as per Section 2(9) of the Act
of 1954, “ ‘establishment’ means a shop, a commercial establishment…”.
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.
Conclusion
The Amendment Act has come into force with effect from 1 April 2017. All establishments
covered under the Amendment Act were supposed to amend their existing maternity
benefit policies to bring it in line with the Amendment Act with effect from 1 April 2017. The
changes brought through the Amendment Act are applauded by everyone. However, there
are different aspects of the Amendment Act that require clarity. It is not clear whether
increased maternity benefits will also be applicable to women who are currently undergoing
maternity leave. Furthermore, the justification for having separate effective date for
implementing “work from home” option is not clear, for the reason that works from home is
an enabling provision brought into force to inspire employers to provide such choice to a
woman depending upon the nature of work being handled by her and not a statutory
requirement under the MB Amendment Act. The requirements like creche facilities require
more capital and operating expenditure on the part of the employer. The establishments
will have to bear the whole cost of providing leave to employees. In most countries, the cost
of maternity leave is shared by the government, employer, insurance agency and other
social security programs.
MCQ’S

1. As per Maternity Benefit Act, t he maximum period for which any woman shall be
entitled to maternity benefit shall be
(A) twenty six weeks
(B) twelve weeks
(C) four months
(D) sixteen weeks
ANS: A

2. The condition of 80 days of employment in the 12 months immediately preceding the


date of benefit has been made an eligibility condition for getting
(A) Maternity Benefit under the Maternity Benefit Act
(B) Disablement benefit under the ESI Act
(C) Gratuity under the Payment of Gratuity Act
(D) Sickness benefit under the ESI Act
ANS: A

3. The Royal Commission on Labour examined which of the two States’ Maternity Benefit
Acts and recommended enactment of similar laws all over the country?
(A) Bombay and Madhya Pradesh
(B) Madras and Mysore
(C) Bihar and Bengal
(D) Punjab and Assam
ANS: A

4. The Workmen’s Compensation Act, 1923, the Maternity Benefit Act, 1965 and the
Employees State Insurance Act, 1948
(A) Together can be applicable.
(B) The Maternity Benefit Act and the Employees State Insurance Act can be applicable at
a time.
(C) The Workmen’s Compensation Act and the Employees State Insurance Act can be
applicable at a time.
(D) If the Workmen’s Compensation Act and the Maternity Benefit Act are applicable, the
Employees State Insurance Act is not applicable.
ANS: D
5. Assertion (A): Provisions of Employees’ compensation Act and Maternity Benefit Act do
not apply to all industries.
Reason (R): Employees’ Compensation Act is a comprehensive social security legislation.
(A) (A) is wrong, but (R) is right.
(B) (A) is right, but (R) does not related to the (A).
(C) (A) and (R) are right, and (R) validates the (A).
(D) (A) and (R) are wrong
ANS: C

6. In the maternity act, an inspector is appointed under which section?


(A) Section 14
(B) Section 2
(C) Section 10
(D) Section 15
ANS: A

7. No contribution is required for getting benefit under which of the following


legislations?
(A) Maternity Benefit Act
(B) Employees’ Compensation Act
(C) Both under (A) & (B)
(D) None of the above
ANS: C

8. Which section of the act states the conditions for eligibility of benefits?
(A) Section 18
(B) Section 5
(C) Section 10
(D) Section 8
ANS: B

9. Till what age of the child will a mother get 2 nursing breaks in the course of her daily
work?
(A)12 months
(B) 6 months
(C)18 months
(D)15 months
ANS: D
10. Under the Maternity Benefit Act, a woman employee would get a medical bonus of:
(A) Rs. 3000
(B) Rs. 3500
(C) Rs. 4000
(D) Rs. 4500
ANS: B
Theofficersadda allexamtricks All exam tricks Allexamstricks

EPFO apfc
Assistant commissioner
LABOUR LAW
Minimum Wages Act 1948
(LATEST UPDATES + MCQ'S)
Minimum Wages Act 1948, Latest Updates + Mcq’s
Introduction
Minimum Wages Act 1948 came into force in India when India had recently gained its
freedom. Labor laws made by the Britishers were exploitative in nature. Wages were low
and different in every part of the country. There was no such thing as “Minimum Wages”
and times were pretty bad for sweat labor.
It came to bring equality and justice to the blue-collar people. Pay fixing experts were
guided by the standards recommended by the Fair Wage Committee in the settlement of
issues identifying with wage problems in organized industries.
The Fair Wage committee explained the core of minimum wages, but they didn’t say how to
evaluate the minimum wage. The 15th session of the Indian Labor Conference explained the
necessary physical requirements and health maintenance of the labors.
Labour laws in India consist of significant legislations such as the Industrial Dispute Act,
1947, Payment of Bonus Act, 1965, Workmen Compensation Act, 1923, Minimum Wages
Act, 1948, etc. In the Indian Constitution, labour laws fall under the Concurrent List, which
gives power to both Central and state governments to legislate and make rules on the
matter. These legislations play significant roles in protecting the rights and interests of the
workers, providing employment opportunities to the workers, protecting employees from
exploitation, creating a healthy work environment, etc.
The system of paying minimum wages to the employees has been globally accepted as a
system to combat poverty and stabilise the economy. The Minimum Wages Act, 1948 was
brought into force by the Parliament of India in order to provide due remuneration to the
workers and to prevent unfair exploitation of the workers by the employers. The Act lays
down the minimum rates of wages and fixing of minimum wage rates for both skilled and
unskilled labour and aims to provide a decent standard of living for them. The Act grants
power to both the Central and state governments to regulate, review and revise the rate of
minimum wages paid to the employees employed in the scheduled employment under their
respective jurisdiction. The Act does not discriminate between men and women, it pays all
the employees equally for doing the same work.

Scope and Objective of the Minimum Wages Act


1) To fix the minimum rates of wages that are to be provided to the employees and
revise such rates of wages every five years.
2) To secure an adequate living wage for all the labourers in the interest of the public.
3) To fix the daily working hours of the employees.
4) To prevent exploitation of the workers by the employers.
5) To ensure that the labourers can maintain a decent standard of living.
6) To provide basic physical needs, good health and a level of comfort to the
employees.
7) To penalise the employers when they fail to provide minimum wages to the workers.
8) To establish advisory boards to regulate and administer the provisions of the Act.
9) To lay down the powers and duties of the inspectors for the purposes of this Act.
10) To prevent any employer from wrongfully infringing the right of any employees.
11) To establish appropriate authorities where the employees can seek redressal when
the employer has failed to pay the daily wage.
12) To authorise the Central and state governments to make rules and regulations for
the purposes of this Act.

Understanding the term minimum wage


The International Labour Organisation (ILO) has defined the term minimum wage as the
lowest amount of remuneration that an employer is required to pay wage earners for the
work performed during a given period, that cannot be reduced by collective agreement or
an individual contract. Around 90 member states of the ILO follow the provision of
minimum wage.
The purpose of minimum wage is to protect the workers from unduly low pay. It enables
them to earn adequate wages for the work done by them and to maintain a minimum living
standard. It also acts as a tool to eradicate poverty and to remove discrimination between
men and women. This system has been designed and developed in a way to supplement and
reinforce other social and employment policies, including collective bargaining, which is
used to set terms of employment and working conditions.
In India payment of minimum wages is regulated and administered by the Minimum Wages
Act, 1948. Since, India offers one of the most competitive labour costs in Asia, with the
national-level minimum wage at around INR 176 which amounts to INR 4576 in a month.
However, it is the national-level wage which will vary considering the geographical location
and other relevant factors. In India, a complex method of setting a minimum wage is used
which defines nearly 2,000 different types of jobs for unskilled workers and over 400
categories of employment which provides a minimum daily wage for each type of job.
Types of wages
In 1948 a tripartite committee, known as the ‘Committee on Fair Wages’ was established.
The committee’s report was the benchmark for the formulation of wage policy in India. The
committee not only set guidelines for wage rates in the country but also laid down three
kinds of wages namely:
Minimum wage: This is the type of wage provided for bare subsistence so that the workers
can maintain a decent standard of living such as providing for education, medical
requirements and an adequate level of comfort.
Fair wage: Any wage paid to the employees that are more than the minimum wage is known
as a fair wage. It is the wage that seeks to maintain a level of employment in the industry
and also looks after the industry’s capacity to pay sufficient remuneration to the employees.
Living wage: A living wage not only meets the minimum requirement of the employees
provided by the employers but also allows individuals or families to afford adequate shelter,
food, and other necessities. It also includes health, sanity, education, dignity, comfort, and
provide for any contingency.
Need for a meaningful minimum wage
In India, the minimum wages fixed for the labourers are so low that it is not enough even for
two meals a day, leave aside the needs of health, education and shelter. The main objective
behind minimum wages of the workers should be primarily because of two reasons:
1) Social objective: Minimum wage is essential for abolishing poverty by providing a
basic standard of living to the employees.
2) Economic objective: The rate of minimum wage should be fixed in such a way that
would motivate the workers to put in maximum efforts at their jobs and thus
improve the economy of the country and their standard of living.
Minimum wage legislation in India requires the active support of workers, trade unions, and
labour associations. It would also require sincerity on part of the labour departments in
each state in order to determine the minimum wage rate on the basis of ethical and
humanitarian concerns to ensure basic subsistence for workers in unorganised sectors.
Ignorance and illiteracy are also the primary reasons for the exploitation of the employees
in the unorganised sectors. Trade unions and NGOs can help by making the workers aware
of the legal provisions of the minimum wage rate and the benefits to which they are
entitled.
Furthermore, minimum wage data is not readily available to the general public. Only limited
official data is available from the National Labour Ministry website which may or may not be
updated regularly and in a timely manner. The information available does not permit
extensive comparison of wages in formal and informal sectors due to different formats of
reporting or recording of wage rates in each state.
Criteria for Fixing Minimum Wages
According to section 3 of the Minimum Wages Act 1948 “The Appropriate Government” will
fix minimum wages. Appropriate Government can include local, State and Central
Government. This section sets the rate according to hours, days, months or any other wage
period may be prescribed.
The rates to be fixed need not be uniform. Diverse rates can be fixed for various zones or
areas. If the wages are fixed according to section 4 of the Payment of the Wages Act, 1936,
the fixing will be done according to the Act.
Minimum Wages are fixed according to the following criteria
Time Rate – The minimum rate is fixed according to the duration of the work done by the
labour.
Piece Rate – Here the minimum wage is fixed by the total number of pieces manufactured
in the factory.
Overtime Rate – Here the minimum rate is fixed by the overtime done by the labor
regardless of the time or piece rate.
Wage Committee
A wage committee shall be formed by the appropriate government, which shall consist of
members from both the employer and employee side. Therefore, an independent person
with having no interest in the employment scheme shall be appointed as the chairman of
the wage committee. The appointment process in the Minimum Wages Act is made in this
way so that there is no scope of discrimination to the labors.
Advisory Board
Section 7 of the Minimum Wages Act, the Advisory Board, which proposes
recommendations and changes to be brought in labour laws. The advisory board proposes a
recommendation to the State and Central Government in fixing the minimum wages.
According to Section 9 of the Act, it talks about the appointment of committees and
subcommittees. The included members are:

 A person appointed by the Appropriate Government.


 Employers and employees, who belong to the scheduled employment and they shall
be equal in number.
 Independent persons and they shall not exceed one-third of the total number of
members. An independent person will be appointed as chairman of the committee.
Wages in Kind
Section 11 says that the wages shall be paid in cash. If somewhere, the payment is done
either wholly or partly and if it is a customary process, then in that the case, the
government through a notification in the official gazette shall enforce the payment partly or
wholly.

THE PAYMENT OF WAGES (AMENDMENT) ACT, 2017


[15th February, 2017]
An Act further to amend the Payment of Wages Act, 1936.

BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as


follows:—
1. (1) This Act may be called the Payment of Wages (Amendment) Act, 2017.
(2) It shall be deemed to have come into force on the 28th day of December, 2016.
2. For section 6 of the Payment of Wages Act, 1936, the following section shall be
substituted, namely:—
"6. All wages shall be paid in current coin or currency notes or by cheque or by
crediting the wages in the bank account of the employee:
Provided that the appropriate Government may, by notification in the Official
Gazette, specify the industrial or other establishment, the employer of which shall
pay to every person employed in such industrial or other establishment, the wages
only by cheque or by crediting the wages in his bank account.".

3. (1) The Payment of Wages (Amendment) Ordinance, 2016 is hereby repealed.


(2) Notwithstanding such repeal, anything done or any action taken under the Payment
of Wages Act, 1936, as amended by the said Ordinance, shall be deemed to have been done
or taken under the corresponding provisions of the said Act, as amended by this Act.

Consequences of Non – Compliance


Non- compliance of the Minimum wages act, i.e not paying minimum wages is a culpable
offense. Hence, violation of fixing hours also attracts the penal provision.
Imprisonment up to 5 years and a fine up to 10,000 is the maximum punishment that can be
awarded. Section 22 of the Act defines the sanctions.
Conclusion
The Minimum Wages Act, 1948 was enacted to safeguard the rights and interests of the
workers working in some scheduled class of employment which is laid down under the Act.
The Act seeks to provide equal employment opportunities and adequate remuneration for
maintaining a decent standard of livelihood for the workers. The provisions under the Act
such as revision of wages at an interval of every five years and fixing working hours in a
normal working day portray how the Act prevents undue exploitation of the workers. The
Act further establishes advisory boards and committees that the workers can approach to
seek redressal regarding cases concerning non-payment of wages or delay in the payment of
wages by their employers. The Act also grants adequate powers to the inspectors to look
after the welfare of the workers. Therefore, this Act plays a crucial role in providing the
basic needs of the workers of a scheduled category of employment, to grant adequate
wages to the workers to survive with their livelihood and also to promote the Directive
Principles of State Policy laid down under Article 43 of the Constitution of India.
Solved Example on Minimum Wages Act 1948
Question: Who Can be the Chairman of the Works Committee?
a) Member of the Employee Association.
b) Member of the Employer’s Association.
c) Independent Person.
d) None of the Above.
Answer: The correct answer is C. An independent person is appointed as a chairman so that
there is no scope of a biased decision. However, the person who is appointed must be
experienced and adept in labor law
MCQS

1. Statutory Minimum wage is fixed under


(a) Payment of Wages Act, 1936
(b) Equal Remuneration Act, 1976
(c) Workmen’s Compensation Act, 1923
(d) Minimum Wages Act, 1948
ANS: D

2. Under the Minimum Wages Act, 1948 the appropriate government shall fix the
minimum rates of wages payable to the employees employed in an employment specified
in
(a) Schedule I part I
(b) Schedule I part II
(c) Schedule I, Part I, II and the employments and added under section 27
(d) Schedule I and II
ANS: C

3. Which of the following is not a method for fixing Minimum Wages under the Minimum
Wages Act, 1948?
(a) Notification Method
(b) Committee Method
(c) Bargaining Method
(d) None of the above
ANS: C

4. The minimum wages as fixed under the Minimum Wages Act, 1948 must be revised at
least once in
(a) 2 years
(b) 3 years
(c) 5 years
(d) No mention under the Act
ANS: C

5. The Minimum Wages Act, 1948 has


(a) One schedule covering different types of industries.
(b) One schedule covering different types of industries, shops and establishments.
(c) One schedule covering shops and establishments.
(d) Two schedules covering industrial establishments and agriculture.
ANS: D
6. Which one of the following is not based on the principle of welfare?
(a) Mica Mines Labour Welfare Funds Act
(b) Iron Ore Mines Labour Welfare Funds Act
(c) Minimum Wages Act
(d) Dock Workers (Safety, Health, Welfare) Act
ANS: C

7. Which of the following legislations apply to unorganized sector workers in India?


(a) Minimum Wages Act
(b) Child Labour (Prohibition and Regulation) Act, 1986
(c) Contract Labour (Regulation and Abolition) Act 1970
(d) All of the above
ANS: D

8. Under the Minimum Wages Act, which of the following cannot be appointed by the
appropriate government by notification under the official gazette for deciding claims
arising out of payment of less than the minimum rates of wages?
(a) Any commissioner for Workmen’s compensation
(b) Any officers of the Central Government exercising functions as a Labour Commissioner
for any region
(c) Any officer of the State Government not below the rank of Labour Commissioner
(d) Any officer not less than the rank of District Magistrate
ANS: D

9. What are the methods mentioned in Section 5 of the Minimum Wages Act, 1948 for
fixation/revision of minimum wages.
(a) Committee method
(b) Notification method.
(c) Voting method
(d) Both (a) & (b)
ANS: D

10.In order to protect the minimum wages against inflation, the Central Government has
made the provision of Variable Dearness Allowance (VDA) linked to --------- .
(a) Wholesale Price Index Number for Industrial Workers (WPI – IW)
(b) Consumer Price Index Number for Industrial Workers (CPI – IW)
(c) Consumer Price Index Number for all Urban Consumers (CPI-UC)
(d) Wholesale Price Index Number for all Urban Consumers (WPI-UC)
ANS: B
11. Which of the following are the responsibilities of Central Advisory Board.
(a) Advising the Central and State Governments in the matters of the fixation of minimum
rates of wages
(b) Advising the Central and State Governments in the matters of the revision of minimum
rates of wages
(c) Co-ordinate the work of State Advisory Boards
(d) All the above
ANS: D

12.The Central Advisory Board shall consist of the following members nominated by the
Central Government
(a) The employers
(b) The employees
(c) Independent persons
(d) All the above
ANS: D

13. If an employee works on any day on which he was employed for a period less than the
requisite number of hours constituting a normal working day, he shall be entitled to
receive wages
(a) for a full normal working day
(b) for the hours he had worked
(c) for a half working day
(d) None of the above
ANS: A

14.To provide guidelines for wage structures in the country, a tripartite Committee Viz.,
"The Committee on Fair Wage" was constituted on -------- .
(a) 1946
(b) 1948
(c) 1964
(d) 1950
ANS: B

15.Under this act, the appropriate Governments have the power to notify any
employment where ------- number of employees are working in 'schedule of employment'
to fix the rates of minimum wages
(a) 500 or more
(b) 100 or more
(c) 1000 or more
(d) 250 or more
ANS: C
Theofficersadda allexamtricks All exam tricks Allexamstricks

EPFO apfc
Assistant commissioner
LABOUR LAW
Payment of Bonus Act
(LATESTUPDATES+MCQ'S)
Payment Of Bonus Act, 1965 , Latest Updates (june’22) + Mcq’s

The Payment of Bonus Act of 1965 imposes a contractual obligation on employers to pay
bonuses to employees in proportion to the resources available for the establishment's
smooth functioning. The Act's purpose was to give workers a say in the company's profits
and to enable them to earn slightly more than the minimum wage based on their
performance.
History Of Payment Of Bonus Act, 1965
The tradition of paying bonuses in India seems to have started during World War-I, when
some textile mills gave their employees a 10% wage increase as a war bonus in 1917. In
certain cases of labour disputes, the claim for bonus payment was also included. The Full
Bench of the Labour Appellate Tribunal established a bonus calculation formula in 1950. In
1959, a demand was made to change the formula.
It was decided at the second and third meetings of the eighteenth Session of the Standing
Labour Committee (G.O.I) in New Delhi in March/April 1960 to appoint a Commission to
look into the issue of bonuses and develop appropriate norms. The Government of India
established a Tripartite Commission to examine the issue of bonus payments based on
earnings to employees working in establishments in a detailed manner and make
recommendations to the Government.
The Commission's recommendations were adopted by the Indian government with some
modifications. The Payment of Bonus Act of 1965 was enacted to carry out these
recommendations, and it went into effect on September 25, 1965.
Scope And Coverage Of The Payment Of Bonus Act, 1965
The Bonus Payment Act covers the entire India. It covers any establishment with twenty or
more employees on any given day during the accounting year, as well as any factory as
specified by the factories act of 1948. �Employee� is defined in Section 2 (13) of the Act
as any person (other than an apprentice) employed on a salary or wage of not more than
twenty one thousand rupees per mensem in any industry to perform any skilled or unskilled
manual, supervisory, managerial, administrative, scientific, or clerical work for hire or
compensation, regardless of whether the terms of employment are express or implied.
The Act does not apply to the following classes of employees:
Employees employed in:
1. Life Insurance Corporation of India
2. Industry carried on or under the authority of any department of Central Government
or a State Government or a Local Authority.
3. Indian Red Cross Society or any other institution of like nature including its branches;
4. Universities and other educational institutions;
5. Hospital, Chambers of Commerce and Social Welfare Institutions established not for
purposes of profits;
6. employed through contractors on building operations;
7. Reserve Bank of India;
8. Industrial Finance Corporation of India, Deposit Insurance Corporation and other
financial corporations being set up financially assisted by the Government, and Unit
Trust of India, Agricultural Refinance Corporation, and Industrial Bank of India,
9. Seamen as defined in Sec. 3(42) of the Merchant Shipping Act, 1958;
10. Inland Water Transport establishment. (Section 32).

Objective Behind The Act


The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to
the persons employed in certain establishments on the basis of profits or production. The
object of the Payment of Bonus Act was very clearly described in Jalan Trading v Mill
Mazdoor Sabha 1, the Supreme Court observed that the purpose of the Bonus Act was to
maintain peace and harmony between labour and capital by allowing workers to share the
prosperity of the establishment and prescribing the maximum and minimum rates of bonus,
as well as the scheme of "set-off" and set - on to not only secure the labour's right in the
share of profits but also to ensure a reasonable degree of uniformity.
Constitutionality Of The Act
The constitutional validity of the act was challenged in the Supreme Court in the case of
Jalan Trading Company Ltd. v. Mill Mazdoor Sabha2, on the grounds of violation of Articles
14 and 19 of the Constitution. The Supreme Court ruled that the main provision of the Act
which required the payment of a minimum bonus was constitutional. The payment of a
bonus is fair since it complies with Articles 39 and 43 of the Constitution.

�Bonus� As Under The Act


The word "bonus" is not specified anywhere in the bonus payment act. A bonus is a
monetary reward that is above and beyond the standard payment. According to the
Cambridge dictionary, a bonus is an additional sum of money offered to you as a gift or
incentive for good performance. The primary goal of providing bonuses is to distribute the
company's profits to its workers and employees.
The bonus commission in its report suggested "It is difficult to define in rigid terms the
concept of bonus, but it is possible to urge that once the profits exceed a certain base,
labour should legitimately have a share in them. In other words, we think it to construe the
concept of bonus as sharing by the workers in the prosperity of the concern in which they
are employed.
This has also the advantage that in the case of low paid workers sharing in prosperity
augments their earnings to bridge the gap between the actual wage and the need-based
wage. If it is not feasible to better the standard of living of all the industrial and agricultural
workers as aimed at in Article 43 of the Constitution it is nothing wrong in endeavouring to
do so in respect of those workers whose efforts have contributed to the profits of the
concern in which they have worked.
The validity of such a conception of bonus is not affected by the difficulty of determining or
qualifying precisely the living wage or even the �need-based:� wage at any given time and
place. It appears tows that a properly conceived bonus system that is linked to profit also
imparts a measure of desirable flexibility to wage structure. The workers are enabled to
share in the prosperity of the concern without disturbing the underlying- basic wage
structure.�
Eligibility For Bonus Under The Act
The payment of bonus is a statutory right under the act and According to the Section 8 of
the act, 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 , shall be eligible for a
bonus.

Disqualification From Bonus Under The Act


According to the sec 9 of the act an employee shall be disqualified from receiving bonus
under the Payment of Bonus Act, 1965, if he is dismissed from service for:
Fraud, or
Riotous or violent behavior while on the premises of the establishment, or
Theft, misappropriation or sabotage of any property of the establishment
This provision is based on the recommendation of Bonus Commission, which stated that:
After all, bonus can only be shared by those workers who promote the stability and well-
being of the industry, not by those who positively exhibit disruptive tendencies. Bonuses,
without a doubt, impose a duty of good behaviour.
Rights Of Employer And Employee
The Said act defines the rights available to the employees as defined below:
Right to claim bonus due under the Act, which allows them to make a request to the
government for payment and recovery of bonus amounts that are not paid to them within
one year of their due date
The right to take any dispute to a Labour Court or Tribunal; however, it is necessary to
remember that employees who are not entitled to bonuses are unable to take their case to
a Labour Court or Tribunal.
Right to seek clarity to obtain details about whatever products are in the name of the
business so that they can determine whether or not they are being fairly compensated for
their services.
The rights available to the Employer against any exploitation or the protection of their
business are given as below:
Rights to bring any dispute to the Labour Court or the Tribunal over a request for an
interpretation of any clause of the Act.
Right to deduct a fair amount from an employee's bonus on account of a bonus already paid
as a festival bonus or in the event of a monetary loss caused by the employee's
misbehaviour.
Right to deduct the value of a bonus paid to an employee who has been fired for
misbehaviour, offensive behaviour, or obstructing the establishment's land.
Payment Of Minimum Bonus
Section 10 of the Act states that, regardless of whether the employer has some allocable
surplus in the accounting year, each employer must pay each employee a minimum bonus
equivalent to 8.33 percent of the employee's salary or wage earned during the accounting
year, or one hundred rupees, whichever is greater. However, if an employee is under the
age of fifteen at the start of the accounting year, the terms of this Section refer to that
employee as if the words "one hundred rupees" were replaced with "sixty rupees." Section
10 of the Act does not contradict Articles 19 and 301 of the Constitution. Even if the
employer loses money during the fiscal year, he must pay the minimum bonus as according
to section 10 of the act.

In J.K. Chemicals Ltd. vs. Govt. of Maharashtra7 the court held that the company would not
be relieved from its liability to pay minimum bonus, if the bonus liability is negligible in
comparison to the loss incurred. If the employer's damages were not caused by employee
wrongdoing, the employer must pay the statutory minimum bonus.
Payment Of Maximum Bonus
If the allocable surplus for any accounting year referred to in Section 10 exceeds the amount
of the minimum bonus available to workers under that Section, the employer is allowed to
pay a bonus equal to each employee's salary or wage received during that accounting year.
In determining the allocable surplus under this Section, the amount set on or set off under
the provisions of Section 15 must be taken into account in accordance with those
provisions.
Provisions Related To Bonus Under The Code On Wages, 2019
The chapter relating to bonus payments under the code on wages applies only to
establishments employing at least 20 workers on any day during the accounting year, similar
to the provisions of the Payment of Bonus Act, 1965.
An annual bonus would be paid to all workers whose salaries do not exceed a certain
monthly sum (to be determined by the federal or state governments). Bonuses are paid on
the higher of the minimum wage or the wage limit set by the relevant government. Along
the lines of the Payment of Bonus Act, the Code on wages lists disqualifications for receiving
bonuses. It should be noted, however, that the Code also states that removal from service
due to a conviction for sexual assault would be provided a ground for disqualification of
bonus under the Code.
Conclusion
The Payment of Bonus Act of 1965 aims to legalise the practise of various establishments
paying bonuses. It provides a mechanism for calculating bonus based on profit and
performance. It allows workers to make more money than the minimum wage or salary.
This Act establishes various procedures for different types of businesses, such as banks and
government agencies, as well as businesses that are not corporations or firms. This Act also
establishes a rigorous redress process in addition to the procedure.
MCQS

1. Which of the following statements is not correct as per the Payment of Bonus Act,
1965?
(a) It is applicable to construction industry.
(b) It does not apply to employees in Life Insurance Corporation of India.
(c) Allocable surplus means 67% of the available surplus.
(d) Employee means any person including apprentice.
ANS: D

2. The ceiling on wage or salary for calculation of Bonus under the Payment of Bonus Act
1965 is.
(a) Rs. 2,500
(b) Rs. 21,000
(c) Rs. 4,500
(d) Rs. 6,500
ANS: B

3. Under the payment of Bonus Act, 1965, the gross profits derived by an employer from
an establishment in respect of any accounting year shall be computed
(a) In case of Banking Company according to schedule II and in any other case schedule I.
(b) In case of Banking Company according to schedule I and in any other case schedule II.
(c) In case of Banking Company and in any other case schedule I.
(d) In case of Banking Company and in any other case schedule II.
ANS: B

4. The Payment of Bonus Act, 1965 is applicable to an employee who draws wage or salary
of
(a) Rs. 3500 in case of apprentice
(b) Rs. 5000 in case of apprentice and employee
(c) Rs. 7500 in case of employee only
(d) Rs. 21,000 in case of employee only
ANS: D

5.Payment of Bonus Act 1965 is applicable to every factory and to every other
establishment where ---------- workmen are employed on any day during an accounting
year
(a) 20 or more
(b) 10 or more
(c) 50 or more
(d) 30 or more
ANS: A
6.Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind
of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for
every accounting year if he has worked for at least ---------- days in that year.
(a) 15 working days
(b) 30 working days
(c) 60 working days
(d) 90 working days
ANS: B

7. The minimum bonus which an employer is required to pay even if he suffers losses
during the accounting year or there is no allocable surplus is --------- % of the salary or
wages during the accounting year
(a) 10%
(b) 20%
(c) 8.33 %
(d) 6.33%
ANS: C

8. If in an accounting year, the allocable surplus calculated after taking into account the
amount ‘set on’ or the amount ‘set of’ exceeds the minimum bonus, the employer should
pay bonus in proportion to the salary or wages earned by the employee in that accounting
year subject to a maximum of ------- % of such salary or wages.
(a) 25%
(b) 30%
(c) 10%
(d) 20%
ANS: D

9.The bonus should be paid in cash within ----------- months from the close of the
accounting year
(a) 8 months
(b) 6 months
(c) 12 months
(d) 3 months
ANS: A

10.An employer has the following rights:


Right to make permissible deductions from the bonus payable to an employee, such as,
festival/interim bonus paid and financial loss caused by misconduct of the employee.
Right to refer any disputes relating to application or interpretation of any provision of the
Act, to the Labour Court or Labour Tribunal.
(a) 1 & 2
(b) 1, 2 & 3
(c) 2 & 3
(d) 1 & 2
ANS: B

11. The employer has to submit an annul return of bonus paid to employees during the
year, in Form D, to the Inspector, within ---------- of the expiry of the time limit specified
for payment of bonus.
(a) 10 days
(b) 20 days
(c) 30 days
(d) 60 days
ANS: C

12.The contravention of the provisions of the Act or rules may attracts the punishment of
(a) imprisonment upto 3 months, or fine up to Rs.500, or both
(b) imprisonment upto 2 months, or fine up to Rs.1000, or both
(c) imprisonment upto 6 months, or fine up to Rs.10000, or both
(d) imprisonment upto 6 months, or fine up to Rs.1000, or both
ANS: D

13. Excess allocable surplus remain after paying the maximum bonus of 20% on the wage
or salary of the employee, should be carried forward to the next following year
for utilizing the payment of bonus in case of the shortage of the allocable surplus or losses
occur. This is called as
(a) Set-On
(b) Set-Off
(c) Take-On
(d) Set-Off
ANS: A

14. Which section states about the classes of employees where Payment of Bonus Act is
not applicable?
(a) Section 16
(b) Section 32
(c) Section 22
(d) Section 30
ANS: B
15.When there are no profits or the amount falls short or deficiency for payment of
minimum bonus to employees, such deficiency amount should be adjusted to the current
accounting year from the Set-On amount which was carried forward in case of excess
allocable surplus in the previous year. This is called as .
(a) Set-On
(b) Set-Off
(c) Take -On
(d) Take -Off
ANS: B
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EPFO apfc
Assistant commissioner
LABOUR LAW
Payment of Wages Act
(LATEST UPDATES + MCQ'S)
PAYMENT OF WAGES ACT (AMENDMENT+ MCQ’S)

Purpose of the Act


The main objective of the Act is to avoid unnecessary delay in the payment of wages and to
prevent unauthorized deductions from the wages. Every person employed in any factory,
upon any railway or through sub-contractor in a railway and a person employed in an
industrial or other establishment. The State Government may by notification extend the
provisions to any class of persons employed in any establishment or class of establishment.
The benefit of the Act prescribes for the regular and timely payment of wages (on or before
7th day or 10th day of after wage period is greater than 1000 workers) and Preventing
unauthorized deductions being made from wages and arbitrary fines.
The Payment of Wages Act regulates the payment of wages to certain classes of persons
employed in industry and its importance cannot be under-estimated. The Act guarantees
payment of wages on time and without any deductions except those authorised under the
Act. The Act provides for the responsibility for payment of wages, fixation of wage period,
time and mode of payment of wages, permissible deduction as also casts upon the
employer a duty to seek the approval of the Government for the acts and permission for
which fines may be imposed by him and also sealing of the fines, and also for a machinery to
hear and decide complaints regarding the deduction from wages or in delay in payment of
wages, penalty for malicious and vexatious claims. The Act does not apply to persons whose
wage is Rs. 24,000/- or more per month. The Act also provides to the effect that a worker
cannot contract out of any right conferred upon him under the Act. It extends to the whole
of India.
Summary of the provisions of the Act
The provisions of the Act regarding the imposition of fines on the employed person are as
follows such as, The employer must exhibit on his premises a list of acts or omissions for
which fines can be imposed, Before imposing a fine on an employed person he must be
given an opportunity of showing cause against the fine, The amount of fine must not exceed
3 percent of the wages, A fine cannot be imposed on an employed person who is under the
age of 15 years, A fine cannot be recovered by instalments or after 90 days from the day of
the act or omission for which it is imposed, The moneys realized from fines must be applied
to purposes beneficial to employed persons.
Subsection 8(3), 10(1-A) & Rule 15} deals with Any person desiring to impose a fine on an
employed person or to make a deduction for damage or loss shall explain personally or in
writing to the said person the act or omission, or damage or loss in respect of which the fine
or deduction is proposed to be imposed, and the amount of fine or deduction, which it is
proposed to impose, and shall hear his explanation in the presence of at least one other
person, or obtain it in writing.
The procedure and Competent authority which deals with employment matters
The procedure to employ a person has to follow for claiming deducted or delayed wages. If
contrary to the provisions of the Act any deduction has been made from the wages of an
employed person or any payment of wages has been delayed, he has to make an application
for claiming the same to the Authority appointed under the Act. Such application can be
made by the employed person himself or a legal practitioner or an official of a registered
trade union. Such application has to be made within a period of 12 months from the date on
which the date on which the deduction from the wages was made or from the date on
which the payment of the wages was due to be made.

There is a competent Authority to entertain and decide an application for payment of


subsistence allowance. The subsistence allowance payable to an employee placed under
suspension pending Departmental Enquiry is covered within the definition of wages given
under Section 2(6) of the Act and, therefore, the Authority is competent to entertain and
decide an application for payment of subsistence allowance.
The Authority under the Payment of Wages Act is a Court of summary jurisdiction having
powers to deal with the simple matter of delay in payment of wages or deduction from
wages. It is not within the competence of the Authority to decide the question of the status
of an employed person. The matter is a complicated question of law as also of fact. There is
an agreement between an employer and his employees authorizing the deduction of union
subscription from the salaries of the employer null and void under Section 23 of the Act,
Such agreement being beneficial and advantageous to the employees is not null and void
under Section 23 of the Act.
Employer's duty
Employer's required to display the abstracts of the Act in his factory or establishment. Every
employer must display in his factory or establishment a notice containing the abstracts of
the Act and the rules made thereunder in English and also in the language understood by
the majority or the persons.
Responsibility for payment of wages [Section 3].
Every employer shall be responsible for the payment to persons employed by him of all
wages required to be paid.
In the case of the factory, manager of that factory shall be liable to pay the wages to
employees employed by him.
In the case of industrial or other establishments, persons responsibility of supervision shall
be liable for the payment of the wage to employees employed by him.
In the case of railways, a person nominated by the railway administration for specified area
shall be liable for the payment of the wage to the employees.
In the case of contractor, a person designated by such contractor who is directly under his
charge shall be liable for the payment of the wage to the employees. If he fails to pay wages
to employees, person who employed the employees shall be liable for the payment of the
wages .
[Sec 5 (3)]
With the consultation of the central government, state government having power and can
change the person responsible for the payment of the wages in Railways, or person
responsible to daily-rated workers in the Public Works Department of the Central
Government or the State Government.
Fixation of wage-periods. [Section 4]
Every person responsible for the payment of wages under section 3 shall fix periods in
respect of which such wages shall be payable. No wage-period shall exceed one month. That
means wage can be paid on daily, weekly, fortnightly (for every 15 days) and monthly only.
Wage period for payment of wages to employees by employer should not exceed 30days i.e.
one month according to this act.
But wages cannot be paid for quarterly, half yearly or once in a year.
Time Of Payment Of Wages. [Section 5]
In railway factory or industrial or other establishment, if there are less than 1000
employees, wages of employees should be paid before the expiry of the 7th day after the
last day of the wage period. (ex:- wages should be paid on starting of present month within
7 days i.e. before 7th date if wage is paid on 1st in previous month )
In other railway factory or industrial or other establishment, if there are more than 1000
employees, wages of employees should be paid before the expiry of the 10th day after the
last day of the wage period. (ex:- wages should be paid on starting of present month within
10 days i.e. before 10th date if wage is paid on 1st in previous month )
For employees of port area, mines, wharf or jetty, wages of employees should be paid
before the expiry of the 7h day after the last day of the wage period.
[Sec 5 (2)]
If the employee is terminated or removed for the employment by the employer the wage of
that employee should be paid within 2 days from the day on which he was removed or
terminated.
Illustration: if the employee was terminated or removed from the employment by the
employer on 10th of this month, his wage should be paid within 2 days from the day on
which he was removed or terminated, i.e. his/her wage should be paid by 12th date of this
month and this date should not exceed.
[Sec 5 (4)]
Except the payment of wage of the terminated employee, all the wages of the employees
should be paid by their employer on the working day only.
Section 6. (THE PAYMENT OF WAGES (AMENDMENT) ACT, 2017)
All wages shall be paid in current coin or currency notes or by cheque or by crediting the
wages in the bank account of the employee:
Provided that the appropriate Government may, by notification in the Official Gazette,
specify the industrial or other establishment, the employer of which shall pay to
every person employed in such industrial or other establishment, the wages only by
cheque or by crediting the wages in his bank account."
7. DEDUCTIONS WHICH MAY BE MADE FROM WAGES.
At the time of payment of the wage to employees, employer should make deductions
according to this act only. Employer should not make deductions as he like. Every amount
paid by the employee to his employer is called as deductions.
The following are not called as the deduction

 Stoppage of the increment of employee.


 Stoppage of the promotion of the employee.
 Stoppage of the incentive lack of performance by employee.
 Demotion of the employee
 Suspension of the employee
The above said actions taken by the employer should have good and sufficient cause.
Deductions [Sec 7 (2)]
Deduction made by the employer should be made in accordance with this act only. The
following are said to be the deductions and which are acceptable according to this act.

 Fines,
 Deductions for absence from duty,
 Deductions for damage to or loss of goods made by the employee due to his
negligence,
 Deductions for house-accommodation supplied by the employer or by government
or any housing board,
 Deductions for such amenities and services supplied by the employer as the State
Government or any officer,
 Deductions for recovery of advances connected with the excess payments or
advance payments of wages,
 Deductions for recovery of loans made from welfare labour fund,
 Deductions for recovery of loans granted for house-building or other purposes,
 Deductions of income-tax payable by the employed person,
 Deductions by order of a court,
 Deduction for payment of provident fund,
 Deductions for payments to co-operative societies approved by the State
Government,
 Deductions for payments to a scheme of insurance maintained by the Indian Post
Office
 Deductions made if any payment of any premium on his life insurance policy to the
Life Insurance Corporation with the acceptance of employee,
 Deduction made if any contribution made as fund to trade union with the
acceptance of employee,
 Deductions, for payment of insurance premia on Fidelity Guarantee Bonds with the
acceptance of employee,
 Deductions for recovery of losses sustained by a railway administration on account
of acceptance by the employee of fake currency,
 Deductions for recovery of losses sustained by a railway administration on account
of failure by the employee in collections of fares and charges,
 Deduction made if any contribution to the Prime Minister’s National Relief Fund with
the acceptance of employee,
 Deductions for contributions to any insurance scheme framed by the Central
Government for the benefit of its employees with the acceptance of employee,

Limit for deductions [Sec 7 (3)]


The total amount of deductions from wages of employees should not exceed 50%, but
only in case of payments to co-operative societies, deduction from wages of employee
can be made up to 75%.
FINES. [Sec 8]
Fine should be imposed by the employer on employee with the approval of the state
government or prescribed authority. Employer should follow the rules mentioned below
for and before imposing of fine on the employee.

 Notice board of fines on employee should be displayed in the work premises and
it should contain activities that should not be made by employee.
 Fine should not be imposed on the employee until he gives the explanation and
cause for the act or omission he made.
 Total amount of fine should not exceed 3% of his wage.
 Fine should not be imposed on any employee who is under the age of 15 years.
 Fine should be imposed for one time only on the wage of the employee for the
act or omission he made.
 Fines should not be recovered in the way of installments from the employee.
 Fine should be recovered within 60 days from the date on which fine were
imposed.
 Fine should be imposed on day act or omission made by the employee.
 All fines collected from the employee should be credited to common fund and
utilize for the benefit of the employees.

DEDUCTIONS FOR ABSENCE FROM DUTY. [Sec 9]


Deductions can be made by the employer for the absence of duty by the employee for
one day or for any period.
The amount deducted for absence from the duty should not exceed a sum which bears
the same relationship to the wage payable in respect of the wage-period as this period
of absence does to such wage-period. (Example: if the salary of an employee is 6000/-
per month and he was absent for duty for one month. Deduction from the salary for
absence of duty should not exceed 6000/-)
Employee present for the work place and refuses to work without proper reason shall be
deemed to be absent from duty.
If 10 or more persons together absent for the duty without any notice and without
reasonable cause, employer can make 8 day of wages as deduction from their wage.
DEDUCTIONS FOR DAMAGE OR LOSS. [Sec 10]
Employer should give an opportunity to the employee to explain the reason and cause
for the damage or loss happened and deductions made by employer from the employee
wage should not exceed the value or amount of damage or loss made by the employee.
[Sec 10 (2)] All such deduction and all realizations thereof shall be recorded in a register
to be kept by the person responsible for the payment of wages under section 3 in such
form as may be prescribed.
DEDUCTIONS FOR SERVICES RENDERED. [Sec 11]
House-accommodation amenity or service provided by the employer should be accepted
by the employee, than only the employer can make deduction from the wage of the
employee. Deduction should not exceed an amount equivalent to the value of the
house-accommodation amenity or service supplied.
DEDUCTIONS FOR RECOVERY OF ADVANCES. [Sec 12]
In case of advance paid to the employees by the employer before employment began,
such advance should be recovered by the employer from the first payment of the wages
/salary to the employee. But employer should not recover the advance given for the
travelling expense for the employee.
DEDUCTIONS FOR RECOVERY OF LOANS. [Sec 12A]
Deductions for recovery of loans granted for house-building or other purposes shall be
subject to any rules made by the State Government regulating the extent to which such
loans may be granted and the rate of interest payable thereon.
DEDUCTIONS FOR PAYMENTS TO CO-OPERATIVE SOCIETIES AND INSURANCE
SCHEMES. [Sec 13]
Deductions for payments to co-operative societies or deductions for payments to
scheme of insurance maintained by the Indian Post Office or with employee acceptance
deductions made for payment of any premium on his life insurance policy to the Life
Insurance Corporation shall be subject to such conditions as the State Government may
impose.
MAINTENANCE OF REGISTERS AND RECORDS. [Sec 13A]
Every employer should maintain such registers and records giving such particulars of
persons employed by him, the work performed by them, the wages paid to them, the
deductions made from their wages, the receipts given by them and such other
particulars and in such form as may be prescribed.
Every register and record required to be maintained and preserved for a period of three
years after the date of the last entry made therein. It means for every transaction made
within employer and employee should have 3 years of record.
PENALTY FOR OFFENCES UNDER THE ACT. [Section 20] (2005 amendments)
Reasons for penalty Delay in payment of wages

 Un reasonable deductions
 Excess deduction for absence of duty
 Excess deduction for damage or loss to employer
 Excess deduction for house-accommodation amenity or service
 Punishable with fine which shall not be less than 1000/- rupees but which may
extend to 7500/- rupees. If Wage period exceed one month.
 Failure in payments of wages on a working day.
 Wages not paid in form of current coin or currency notes or in both.
 Failure to maintain record for collected fines from employee.
 Improper usage of fine collected from employees.
 Failure of employee to display notice containing such abstracts of this Act and of
the rules made.
 Punishable with fine which may extend 3000/- rupees
 Whoever obstructs an Inspector in the discharge of his duties under this Act
 Whoever wilfully refuses to produce on the demand of an Inspector any register
or other document. Whoever refuses or wilfully neglects to afford an Inspector
any reasonable facility for making any entry, inspection, examination,
supervision, or inquiry authorized by or under this Act
 Whoever repeats the same offence committed before.
 Imprisonment for a term which shall not be less than one month but which may extend
to 6 months and fine which shall not be less than 3750/- rupees but which may extend
20500/-rupees.
PAYMENT OF UNDISBURSED WAGES IN CASE OF DEATH OF EMPLOYED PERSON. [Sec
25A]

 Paid by the employer to the person nominated by the employee.


 Wage deposited by the employer with the prescribed authority, the employer
shall be discharged of his liability to pay those wages.
 Where no such nomination has been made or where for any reasons such
amounts cannot be paid to the person so nominated, be deposited with the
prescribed authority who shall deal with the amounts so deposited in such
manner as may be prescribed.
Conclusion
The Payment wages act is a regulation drawn up to protect the employee’s rights
from being infringed by the employer. The employee should be paid on time and
should not be harassed against anything during the employment. It has however
given a lot of protections to employees and will continue to do so in the future as
well.
MCQS

1. Which of the following is not included under the definition of wages given under the
Payment of Wages Act, 1936?
(a) Basic Wage
(b) Dearness Allowance
(c) Incentive
(d) Gratuity
ANS: D

2. Under the Payment of Wages Act, 1936 the maximum limit on deductions should not
ordinarily cross
(a) 50 percent generally and 65 percent in case of payments due to the cooperatives
(b) 60 percent generally and 75 percent in case of payments due to the cooperatives
(c) 50 percent generally and 75 percent in case of payments due to the cooperatives
(d) 40 percent generally and 75 percent in case of payments due to the cooperatives
ANS: C

3. If deduction is made contrary to the provisions of the Payment of Wages Act, 1936 the
aggrieved employee can write to the inspector appointed under the Act within the time
period given below from the date on which the deduction from wages was made or the
date on which the payment of wages is due
(a) two years
(b) one year
(c) twelve weeks
(d) six weeks
ANS: C

4. Under which labour legislation in India the provision of check-off has been accepted?
(a) Industrial Disputes Act, 1947
(b) Trade Unions Act, 1926
(c) Payment of Wages Act, 1936
(d) Industrial Employment (Standing Orders) Act
ANS: C

5. The present wage ceiling per month for the purpose of the Payment of Wages Act, 1936
is
(a) Rs. 10. 000/-
(b) Rs. 15, 000/-
(c) Rs. 18, 000/-
(d) Rs. 20,000/-
ANS: C
6. As per Payment of Wages Act, 1936, in railway factory or industrial or other
establishment upon or in which less than one thousand persons are employed, wages
shall be paid before the expiry of the
(a) Seventh day of the month.
(b) Tenth Day of the months
(c) Third Day of the months
(d) None of the above
ANS: A

7. According to this Act, the maximum wage period or payment of wages to employees by
employer should not exceed
(a) 45 days
(b) 15 days
(c) 30 days
(d) 60 days
ANS: C

8.If the employee is terminated or removed for the employment by the employer, the
wage of that employee should be paid within -------- days from the day on which he was
removed or terminated.
(a) 7 days
(b) 15 days
(c) 30 dyas
(d) 2 days
ANS: D

9.The total amount of deductions from wages of employees should not exceed --------
percentage.
(a) 50 %
(b) 70 %
(c) 25 %
(d) 40 %
ANS: A

10.Total amount of fine imposed by the employer on employees should not exceed --------
percentage of his wage
(a) 1 %
(b) 3 %
(c) 7 %
(d) 5 %
ANS: B
11. Fine should be recovered within ------- days from the date on which fine were
imposed.
(a) 30 days
(b) 45 days
(c) 60 days
(d) 75 days
ANS: C

12. If 10 or more persons together absent for the duty without any notice and without
reasonable cause, employer can make -------- days wages as deduction from their wage.
(a) 30 day
(b) 10 day
(c) 7 day
(d) 8 day
ANS: D

13.If wage period exceed one month, the employer may be punished with fine which shall
not be less than -------- 1000/- rupees but which may extend to --------- 7500/- rupees.
(a) Rs.1000/- and Rs.7500/-
(b) Rs.1000/- and Rs.10,000/-
(c) Rs. 500/- and Rs. 5000/-
(d) Rs.750/- and Rs.6000/-
ANS: A

14. Whoever obstructs an Inspector in the discharge of his duties under this Act, he may
be punished with fine which may extend --------- rupees
(a) Rs.5000/-
(b) Rs.3000/-
(c) Rs.7500/-
(d) Rs.3500/-
ANS: B

15. Fine should not be imposed on any employee who is under the age of ------- years.
(a) 21 years
(b) 18 years
(c) 15 years
(d) 14 years
ANS: C
Theofficersadda allexamtricks All exam tricks Allexamstricks

EPFO apfc
Assistant commissioner
LABOUR LAW
Payment of Gratuity Act
(LATEST UPDATES + MCQ'S)
Payment of Gratuity Act,1972 (Latest update + Mcq’s)

Introduction
The Payment of Gratuity Act is a genre of various statutes like the Minimum Wages Act,
Employment and Social Policy, etc. which is an extension of labour laws and it lays down the
minimum benefits to be provided to the employees. It is a social security enactment
providing for the welfare benefits of the employees working in industries, companies and
organisations.
Scope and Objective
The Payment of Gratuity Act,1972 was enacted with sole objective of providing gratuity i.e.,
a monetary award given for services rendered to the employees working in the factories,
oilfields, mines, plantations, railway companies, shops or other establishments upon their
superannuation (e.g.,old age retirement amount, etc.), retirement, resignation, death or
disablement.
What is gratuity?
Gratuity, simply put, is a reward for long-serving employees. In India, gratuity is generally
considered as one of the prime contributors to an employee’s retirement chest. If you are a
business owner or someone who’s overseeing the payroll for your organization, and if you
have an employee who’s completed 5 years or close to 5 years, the employee becomes
eligible for gratuity.
The Payment of the Gratuity Act, 1972 was first introduced on 21st August 1972 and was
passed by the Parliament of India. It became applicable from 16th September 1972. As per
the latest eligibility rules for gratuity, organizations that have 10 or more employees are
covered by the act.
Eligibility
How do you assess your employees for gratuity eligibility?
The general rule of thumb is that an employee becomes eligible for gratuity if they’ve
completed 5 years of continuous service with a single employer. However, some employees
are exempted from this rule, and will still be eligible for gratuity in the event of their death
or disability during their service even if they haven’t completed 5 years of service.
Evaluating continuous service
Since gratuity is time-based, it is important to understand how continuous service is
calculated. Any employee who offers their uninterrupted service to their organization,
leaving out absences that aren’t any fault of the employee, is considered to be in continuous
service.
Summarizing the eligibility criteria
Since gratuity is a lump sum, there are strict eligibility criteria that your employees need to
fulfill. Your employees will be eligible to receive gratuity if:
1. They have retired from the job.
2. They have resigned after providing 5 years of service in your company.
3. They have passed away or become disabled due to an illness or accident.
Gratuity calculation for your employees
To calculate gratuity, employers in India use a formula-based approach, where the gratuity
payable depends on two factors:

 The employee’s last drawn salary amount


 Years of service
For calculating gratuity, the Payment of Gratuity Act has divided non-government
employees into two categories: employees that are covered under the act and those that
aren’t.
Gratuity formula for employees covered under the act
Last drawn salary includes basic pay, dearness allowance, and sales commissions.
Example: Let’s assume the employee’s last drawn salary is ₹70,000, and the employee has
worked with the company for 20 years and 8 months. The formula to calculate gratuity will
be: (15 * 70,000 * 21) / 26
We are considering the tenure of working to be 21 years because the employee has already
worked for more than 6 months into their 21st year of employment. If the employee had
worked for 20 years and 5 months, then only 20 years would be considered.
Gratuity formula for employees not covered under the act
Last drawn salary includes basic pay, dearness allowance, and sales commissions.
Example: Let’s assume the employee’s last drawn salary is ₹70,000, and the employee has
worked with the company for 20 years and 8 months. The formula to calculate gratuity will
be: (15 * 70,000 * 20) / 30
We are considering the tenure of working to be 20 years because, in this scenario, only the
number of completed years is taken into consideration.
You can also use our Gratuity Calculator to quickly compute your lump sum amount.
Tax calculation on gratuity
Depending on your employees’ eligibility for receiving gratuity, there are three different
ways in which your employees get taxed.
If it is a government employee (under either central or state government) who is eligible for
gratuity, they’ll be exempt from income tax.
For employees who are covered under the Payment of the Gratuity Act, only the last fifteen
days of the drawn salary will be exempt from income tax.
For employees who are not covered under the Payment of the Gratuity Act, then the least
of the following 3 amounts will be exempt from income tax:

 Rs.10 lakh
 The actual amount of gratuity received
 One-half month’s salary for every year of employment that the employee has
completed with the employer
Payment of gratuity to your employees
Regardless of your long-serving staff loyalty, there are some scenarios in which you can
withhold the entire gratuity amount or collect a partial amount back as outstanding dues.
If any of your employees get terminated because of unethical behavior at work or lack of
respect for repeated warnings or even ends up damaging your office property, you can
deduct these from their gratuity pay. In order to cover these expenses, businesses are also
allowed to take an insurance policy from LIC. As an employer, you can also completely
forfeit the gratuity payout if your employees exhibit violent behavior, or get involved in
lawless acts.
Compulsory Insurance
Section 4A of the Act provides for the compulsory insurance to every employer other than
those belonging to the Central Government or State Government through Life Insurance
Corporation. However, those employers are exempted from this provision who have an
established and registered gratuity fund in their company. The government may also make
rules for the enforcement of this section as and when necessary. Violation of this provision
by anyone may lead to penalty.
Power to Exempt
The Act provides the power to exempt to the appropriate government by notification to
declare any establishment, factory, mine, oilfield, plantation, port, railway company or shop
exempted from gratuity if the government is of the opinion that the establishment has
favourable benefits not less than what this Act has been providing. The same law applies to
any employee or class of employees.
Nomination
According to this Act, it is necessary for the employee to prescribe for the name/names of
the nominee soon after completing one year of service. In case of a family, the nominee
should be one among the family members of the employee and other nominees shall be
void. Any alteration or fresh nomination must be conveyed by the employee to the
employer who shall keep the same in his safe custody.
Determination of the Amount of Gratuity
The person entitled to receive the gratuity amount shall send an application in writing to the
employer. The employer shall calculate the gratuity amount and provide notice in writing to
the concerned employee and the controlling authority. The payment should be made within
30 days from the date payable to the employee. Failure of payment within the prescribed
limit will result in payment of simple interests. However, if the delayed payment is because
of the employee then the employer is not entitled to pay the simple interests.
The disputes arising between the employee and employer shall be referred to the
controlling authority and proceeding for the resolution presided by the controlling authority
shall be considered to be judicial proceeding. The controlling authority has the authority to
enforce the presence of any person and examine his oath, production of relevant
documents and issuing commissions for the examination of witnesses if required. After due
inquiry and giving the parties a reasonable opportunity of being heard, the controlling
authority may determine the matters and pass appropriate orders. The aggrieved party can
apply for appeals to the government.
Inspectors Appointed for the Purpose of this Act and their Powers
The government may appoint an inspector or inspectors who are deemed to be a public
servant under Section 21 of Indian Penal Code for the purpose of ascertaining whether any
of the provisions of this Act are being violated or not complied with and take necessary
measures to ensure the fulfilment of all the provisions of this Act.
Recovery of Gratuity
If the employer delays in the payment of gratuity amount under the prescribed time limit,
then the controlling authority shall issue the certificate to the collector on behalf of the
aggrieved party and recover the amount including the compound interest decided by the
central government and pay the same to the person. However, these provisions are under
two conditions:
1. The controlling authority should give the employer a reasonable opportunity to show
the cause of such an Act.
2. The amount of interest to be paid should not exceed the amount of gratuity under
this Act.
Penalties
Violation of the provisions of the Act shall entail certain penalties. They are:
1. For avoiding any payment, if someone makes a false representation or false
statement shall be punishable with imprisonment for 6 months or fine up to Rs.
10,000 or both.
2. Failure to comply with the provisions of this Act shall be punishable for a minimum
of 3 months which may extend upto 1 year or a fine of Rs. 10,000 which may extend
upto 20,000.
3. Non-payment of gratuity under the Act will lead to offence and the employer shall
be punishable with imprisonment for at least 6 months and which may extend upto
2 years unless the court provides for the sufficient reason for less payment.
Exemption of Employer from Liability
An employer if charged with any offence punishable under this Act, shall be exempted from
any liability, if he provides sufficient reasons for his conduct of the act or some other person
doing that act without his knowledge. The other person if found guilty will be charged with
the same punishment as an employer shall be charged.
Cognizance of Offences
The court cannot take cognizance of the offences punishable under this Act unless the
amount of gratuity to be paid has not been paid or recovered within 6 months from the
expiry of the prescribed time. In such cases, the government shall authorise the controlling
authority to make a complaint where the authority has to make a complaint to the
metropolitan magistrate or judicial magistrate of first class within 15 days of the
authorisation.
Protection of action taken in good faith
The controlling authority shall not be under any legal proceeding if the acts done by him is in
good faith or under any rule or any order.
Protection of Gratuity
No exempted gratuity which is payable under this Act to the employee by the employer
shall be liable to the attachment of any order or decree by any court.
Act to override other enactments
Since the Payment of Gratuity Act is complete in itself, therefore, this Act has an overriding
effect on all provisions, regulations and statutes relating to gratuity. The landmark case for
this provision is University Of Delhi vs Ram Prakash And Ors. which states that any provision
which is more beneficial for the employees should be considered to be having overriding
effect.
Power to make rules
The power to make rules in the Payment of Gratuity Act, 1927, shall rest with the
appropriate government and declare by notification.
Payment of Gratuity (Amendment) Act, 2018 brought in force on 29th March, 2018
Decision: The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on
15th March, 2018 and by the Rajya Sabha on 22nd March, 2018, has been brought in force
on 29th March, 2018.
Background: The Payment of Gratuity Act, 1972 applies to establishments employing 10 or
more persons. The main purpose for enacting this Act is to provide social security to
workman after retirement, whether retirement is a result of superannuation, or physical
disablement or impairment of vital part of the body. Therefore, the Payment of Gratuity
Act, 1972 is an important social security legislation to wage earning population in industries,
factories and establishments.
2. The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions
for Central Government employees under Central Civil Services (Pension) Rules, 1972 with
regard to gratuity are also similar. Before implementation of 7th Central Pay Commission,
the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation
of 7th Central Pay Commission, in case of Government servants, the ceiling has been raised
toRs. 20 Lakhs.
3. Therefore, considering the inflation and wage increase even in case of employees
engaged in private sector, this Government decided that the entitlement of gratuity should
also be revised in respect of employees who are covered under the Payment of Gratuity Act,
1972. Accordingly, the Government initiated the process for amendment to Payment of
Gratuity Act, 1972 to increase the maximum limit of gratuity to such amount as may be
notified by the Central Government from time to time. Now, the Government has issued the
notification specifying the maximum limit to Rs. 20 Lakh.
4. In addition, the Bill also envisages to amend the provisions relating to calculation of
continuous service for the purpose of gratuity in case of female employees who are on
maternity leave from ‘twelve weeks’ to ‘such period as may be notified by the Central
Government from time to time’. This period has also been notified as twenty six weeks.
MCQS

1. Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is
(a) Rs. 20 lakhs
(b) Rs. 8 lakhs
(c) Rs. 5 lakhs
(d) Rs. 3.5 lakhs
ANS: A

2. What is the qualifying service to claim gratuity?


(a) 15 years
(b) 10 years
(c) 5 years
(d) No such prescription
ANS: C

3. The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972
is
(a) Completion of 2 years of Service
(b) Completion of 3 years of Service
(c) Completion of 4 years of Service
(d) Completion of 5 years of Service
ANS: D

4. The maximum amount of gratuity has now been enhanced to Rs. 20 lakhs from
(a) 2.5 lakhs
(b) 10 lakhs
(c) 5 lakhs
(d) 7.5 lakhs
ANS:B

5. Payment of Gratuity Act, 1972 is applicable to every shop or establishment within the
meaning of any law for the time being in force in relation to shops and establishment in a
State, in which --------- persons are or were employed on any day in the preceding 12
months.
(a) 10 or more persons
(b) 10
(c) 10 or more persons
(d) 20
ANS: A
6.For every completed year of service or part thereof in excess of six months, the
employer shall pay gratuity to an employee at the rate of -------- days’ wages based on the
rate of wages last drawn by the employee concerned
(a) 25 days
(b) 15 days
(c) 30 days
(d) 7 days
ANS: B

7.In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by
dividing the monthly rate of wages last drawn by him by ----------- and multiplying the
quotient by fifteen.
(a) 30
(b) 15
(c) 26
(d) 25
ANS: C

8.In the case of an employee who is employed in a seasonal establishment and who is not
so employed throughout the year, the employer shall pay the gratuity at the rate of --------
days’ wages for each season.
(a) 14 days
(b) 15 days
(c) 10 days
(d) 7 days
ANS: D

9.The employer shall arrange to pay the amount of gratuity within --------- days from the
date it becomes payable.
(a) 30 days
(b) 15 days
(c) 60 days
(d) 75 days
ANS: A

10. Appeal on the decision of controlling authority should be preferred within --------- days
from the date of the order
(a) 30 days
(b) 60 days
(c) 15 days
(d) 75 days
ANS: B
11.The formula for calculating gratuity is
(a) Gratuity = (Monthly Salary/25) X 15 X No. of years of service
(b) Gratuity = (Monthly Salary/30) X 15 X No. of years of service
(c) Gratuity = (Monthly Salary/26) X 15 X No. of years of service
(d) Gratuity = (Monthly Salary/15) X 15 X No. of years of service
ANS: C

12. Which of the following is wrong statement


(a) No gratuity payable under the Act shall be liable to attachment in execution of any
decree or order of any civil, revenue or criminal court.
(b) The Payment of Gratuity (Amendment) Act, 1987 has prescribed provisions for
compulsory insurance for employer’s liability for payment towards the gratuity under the
Act from the Life Insurance Corporation of India or any other prescribed Insurer.
(c) Once the Payment of Gratuity Act becomes applicable to the establishment, a notice in
Form ‘A’ has to be given by the employer to the controlling authority within 30 days.
Notice in Form ‘B’ is to be given to the controlling authority within 30 days of any change
in name, address, employer or nature of business. If an employer proposes to close down
the business, he shall submit a notice in Form ‘C’ to the Controlling Authority at least 60
days before the intended closure.
(d) This act is not applicable to public charitable and religious trusts
ANS: D

13.For avoiding any payment knowingly makes any false statement or representation shall
be punishable with
(a) imprisonment upto 3 months or fine upto Rs. 10,000/- or both
(b) imprisonment upto 6 months or fine upto Rs. 10,000/- or both
(c) imprisonment upto 3 months or fine upto Rs. 20,000/- or both
(d) imprisonment upto 6 months or fine upto Rs. 20,000/- or both
ANS: B

14.Failure to comply with any provision of the Act or Rules shall be punishable with
(a) imprisonment upto 1 year or with fine extend upto Rs. 10,000/- or with both
(b) imprisonment upto 1 year or with fine extend upto Rs. 20,000/- or with both
(c) imprisonment upto 2 year or with fine extend upto Rs. 20,000/- or with both
(d) imprisonment upto 2 year or with fine extend upto Rs. 50,000/- or with both
ANS: B

15. Which section deals with the determination of the amount of gratuity
(a) Section 10
(b) Section 8
(c) Section 7
(d) Section 9
ANS: C
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EPFO apfc
Assistant commissioner
LABOUR LAW
Employees (workmen's) Compensation
(LATEST UPDATES + MCQ'S)
Employees(workmen’s) compensation act 1923 (Latest Updates + Mcq’s)

The compensation act for workmen was formed after it came into notice that the laborers were

becoming exposed to the danger by using more sophisticated and advanced machinery.

According to the compensation act of 1884, the employer would take responsibility for the

compensation of its workmen only when some major or fatal accidents occur on road. However,

in 1885, the mining and factory inspectors realized that this Fatal Act, 1885, is not sufficient.

The Government gave it a hearing ear, when the Legislative Assembly members, representatives

of employer, experts in medicine, workers, and insurance experts formed a committee that

provided a report that led to the Workmen’s Compensation Act, 1923.

When this act was passed, it put a stop and provided relief to the workers who would have

gone through the processing of court that is generally expensive. It was an effort to seek

compensation whenever they encounter some injury during employment.

scope of workmen’s compensation act

The workmen’s compensation act, 1923, is applicable for those workers who are working with

an industry that is mentioned in the act. Under this act, the protection of workmen from injuries

and losses caused through an accident in course of and arising out of the employment subject

to specific expectations as mentioned in the act.

The objective of the workmen's compensation act

The Workmen’s Compensation Act, 1923 was majorly formed to provide compensation to the

workmen at the time of an accident.

The act mentions that it is the duty and responsibility of the employer to include the welfare of

the workers when an injury is the result of the employment in the same way the employer has

reserved the right of making profits. The main aim of this act is to ensure that the workmen

have sustainable life even after encountering an employment-related injury.

The liability of the employer for compensation

To make the employer pay the compensation at the time of injury or death suffered by the
employee or workman should be a consequence of some accident in course of or out of his/her
employment depends on the following four conditions:

1. The causal connection between the accident and the injury (which is personal injury is
caused to a workman while he/she is on work).
2. The probability is based on the reason that work has contributed because of personal injury.
3. The accident and injury that is caused during the employment course.
4. The applicant who proves that the accident or injury occurred during work and its results
strain that has aggravated or contributed to the injury.

Applicability of the workmen’s compensation act

This act is applicable across India except for Jammu and Kashmir. This act does not apply to the

areas that are covered by the Employees State Insurance Act, 1948.

The rules for workmen’s compensation have changed in 2020

There is good news for the workers as the Central Government has changed the rules for the

calculation of the compensation of the employees under the Workmen's Compensation Act,

1923. The notification for the same has sent on 3rd January 2020 in which the amount of the

wages, which were considered previously for compensation’s calculation was Rs.8,000, are now

increased to Rs.15,000 as per the Ministry of Labour and Employment.

Since 2010, the Workmen's Compensation Act, 1923 was known as the Employee’s

Compensation Act. It offers compensation to the employees who suffer or die total or partial

disablement because of an accident while on work. The compensation is paid by the employer

and an employee who is eligible to get compensation from ESIC cannot claim compensation

under the Employee’s Compensation Act, 1923.

Conditions when employer is not liable to pay compensation

According to the workmen's compensation act, an employer has to pay the compensation to its
employee when he/she encounters some personal injury due to an accident that arose during an
employee's employment. An employer is not liable for paying the compensation if:

1. An injury that doesn’t result in partial or total disablement of the employee for more than
three days.
2. Any injury that does not result in permanent total disability or death because of an accident
in the influence of drugs or drink.
3. If an employee meets with an accident that is caused because of wilful disobedience of the
rules by him/her and wilful safety guard removal.

Calculation of the compensation

The calculation of compensation as per the act is performed according to the provisions under

Section four of the Workmen’s Compensation Act:

In Case of an Accident that Results in Permanent Total Disablement: In this case, an

amount equal to 60% of injured employee’s monthly wage into the relevant factor or Rs.1, 20,

000, whichever is more is given.

When an Accident Results in Death: An amount that is equal to 50% of the monthly wage of

the deceased employee into the relevant factor or an amount equal to Rs.1, 20, 000, whichever
is more.

Note: According to the new rule mentioned by the government, Rs.15, 000 is considered as

wage for computation under the workmen's compensation act, 1923. The relevant factor here is

provided in Section IV of this Act.

Conclusion:

The Workmen’s Compensation Act, 1923 was made to offer compensation to the workers who

have encountered injuries due to an accident during their employment. This act ensures that

rights of the laborers are maintained even after they encounter some disability or death due to

an accident during their work. Therefore, the employers are obligated to offer compensation to

their workers who encountered injuries that have led to demise or disablement during

employment.
MCQS

1. Under Workmen’s Compensation Act, 1923


(A) Individual manager subordinate to an employer cannot act as managing agent.
(B) Managing agent includes an individual manager subordinate to an employer.
(C) Only employer can act as managing agent.
(D) The appropriate government shall appoint managing agent.
ANS: D

2. The Workmen’s Compensation Act, 1923, the Maternity Benefit Act, 1965 and the
Employees State Insurance Act, 1948
(A) Together can be applicable.
(B) The Maternity Benefit Act and the Employees State Insurance Act can be applicable at
a time.
(C) The Workmen’s Compensation Act and the Employees State Insurance Act can be
applicable at a time.
(D) If the Workmen’s Compensation Act and the Maternity Benefit Act are applicable, the
Employees State Insurance Act is not applicable.
ANS: D

3. Assertion (A): Provisions of Employees’ compensation Act and Maternity Benefit Act do
not apply to all industries.
Reason (R): Employees’ Compensation Act is a comprehensive social security legislation.
(A) (A) is wrong, but (R) is right.
(B) (A) is right, but (R) does not related to the (A).
(C) (A) and (R) are right, and (R) validates the (A).
(D) (A) and (R) are wrong.
ANS: C

4. While working at the construction of a multi-storeyed building of a company, a worker


employed by a ‘contractor’, supplied by a ‘sirdar’, faced an accident and became
temporarily disabled. For paying compensation to the worker, who shall be held
responsible as per law?
(A) The contractor who employed the worker
(B) The sirdar who supplied the worker
(C) Both (A) and (B)
(D) None of the above
ANS: A
5. No contribution is required for getting benefit under which of the following
legislations?
(A) Maternity Benefit Act
(B) Employees’ Compensation Act
(C) Both under (A) & (B)
(D) None of the above
ANS: C

6. If the money is due from the employer under the settlement or award, the workman or
his assignee can make an application to the appropriate government for the recovery
within the period given below.
(A) One year.
(B) One year and also after the said period of the appropriate government is satisfied that
the applicant has sufficient cause for not making the application within one year.
(C) Two years.
(D) Three years.
ANS: B

7. The name of which of the following legislations has been recently changed?
(A) Workmens’ Compensation Act
(B) Employees’ State Insurance Act
(C) Maternity Benefit Act
(D) Payment of Gratuity Ac
ANS: A

8. Which of the following statements relating to the Employees’ Compensation Act is not
correct?
(A) This Act has a link with the Workmen’s Compensation Act
(B) This act is the outcome of the amendment that was made to the Workmen’s
Compensation Act
(C) This act does not have any provision relating to temporary disablement of workmen
(D) This act has a provision relating to permanent partial disablement
ANS: C

9. Assertion (A): Industrial accidents occur inter-alia due to fatigue.


Reason (R): Fatigue is the result of personal health condition of the worker as well as by
overwork, monotony and boredom as part of work experience.
Codes:
(A) (A) is right but (R) is wrong.
(B) (A) is right and the (R) rightly explains the (A).
(C) Both (A) and (R) are wrong.
(D) (A) is wrong but (R) is right.
ANS: B
10. If there is willful removal or disregard by the workman of any safety guard or other
device which he knew to have been provided for the purpose of securing safety of
workman,
(A) Employer is liable to pay compensation
(B) Employer is not liable to pay compensation
(C) Appropriate government is liable to pay compensation
(D) The Trade Union is liable to pay compensation
ANS: B

11. Under Workmen’s Compensation Act, 1923, which of the following are considered as
dependent of deceased workman for the purpose of paying compensation?
(i) a minor brother or an unmarried sister or a widowed sister
(ii) a widowed daughter-in-law
(iii) a minor child of a pre-deceased son
(iv) a minor child of a pre-deceased daughter where no parent of the child is alive
(v) a paternal grandparent if no parent of the workman is alive;
(A) i, ii & v
(B) i, ii. iii & iv
(C) i, ii, iii & v
(D) i, ii, iii, iv & v
ANS: D

12.Under this Act, employer shall not be liable to pay compensation in respect of any
injury which does not result in the total or partial disablement of the workman for a
period exceeding ------- days;
(A) 7
(B) 3
(C) 5
(D) 2
ANS: B

13. Under this Act, employer shall not be liable to pay compensation in respect of any
injury not resulting in death or permanent total disablement caused by an accident
(A) Under the influence of drink or drugs
(B) Due to the wilful disobedience of the workman to an order expressly given or to a rule
expressly framed for the purpose of securing the safety of workmen
(C) Due to the wilful removal or disregard by the workman of any safety guard or other
device he knew to have been provided for the purpose of securing the safety of workman
(D) All the above
ANS: D
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EPFO apfc
Assistant commissioner
LABOUR LAW
Trade Union Act
(LATEST UPDATES + MCQ'S)
Trade Union Act ( Latest Updates + Mcq’s)
Introduction
Before the emergence of industrialization on a massive scale, there were personal contracts
between the workers and employers. Therefore, no requirement for the evolution of any
machinery governing the relationship between workers and employers arose until then. But
after the establishment of modern factory system this relationship lost its significance due
to large scale industrialization which enticed employers to reduce the cost of production in
order to withstand the cut-throat competition in the market and maximize their profit by
using technologically more sophisticated means of production which in turn resulted in the
rise of a new class of workers who were completely dependant on the wages for their
survival which changed the existing employer and employee relationship in which the
employees were exploited by their employers. The conflict of interest between workers and
employers and the distress of workers resulted in the growth of various trade unions.
A trade union is an organized group of workers who strive to help the workers in the issues
relating to the fairness of pay, good working environment, hours of work and other benefits
that they should be entitled to instead of their labour. They act as a link between the
management and workers. In spite of being newly originated institutions, they have turned
into a powerful force because of their direct influence on the social and economic lives of
the workers. To control and manage the working of these trade unions different legislations
regulating the same required. In India Trade Unions Act of 1926 is a principal Act for
controlling and managing the working of trade unions. The present article aims at explaining
and bringing forth various aspects of the Act.
History of Trade Unionism in India
In India trade unions have developed into an important platform for putting up the
demands of the workers. They have also turned into one of the most influential pressure
groups, which is an aggregate seeking to influence the government in framing legislation in
favour of workers without aspiring to become part of the government. As an organized
institution, trade unionism took its concrete shape after the end of World War 1. The trade
unions in India are essentially the product of modern large scale industrialization and did
not grow out of any existing institutions in society. The need for an organized trade union
was first realized in 1875 by various philanthropists and social workers like Shri Sorabji
Shapaji Bengali and Shri N.M. Lokhandey whose constant efforts resulted in the formation
of trade unions like The Printers Union of Calcutta (1905), the Bombay Postal Union (1907).
The setting up of textile and mill industries at the beginning of the 19th century in the
presidency towns of Bombay, Madras, and Calcutta gave impetus to the formation of
industrial workforce association in India. The Bombay Mill-Hands Association, founded by
N.M. Lokhande in 1890 is the first labour association of India. The following years saw the
rise and growth of several other labour associations and unions in India like the Madras
Labour Union which is the first properly registered trade-union founded by B.P. Wadia in the
year 1918, in the year 1920 the country saw the growth of the Ahmedabad Textile
Labourer’s Association in Gujarat which turned into a union under the guidance of Mahatma
Gandhi and is considered to be one of the strongest unions in the country of that time
because of the unique method of arbitration and conciliation it had devised to settle the
grievances of the workers with the employers. Since the union followed the ideals of truth
and nonviolence laid down by Mahatma Gandhi it was able to secure justice to the workers
in a peaceful manner without harming the harmony in the society. In the same year, the
first trade union federation All India Trade Union Congress (AITUC) saw the light of the day,
it was formed after the observations made by the International Labour Organization which
highlighted the influence of politics on trade unions and associations and how the same is
detrimental for any economy to prosper.
The importance of the formation of an organized trade union was realized by nationalist
leaders like Mahatma Gandhi who to improve the employer and worker relationship gave
the concept of trusteeship which envisaged the cooperation of the workers and employers.
According to the concept, the people who are financially sound should hold the property
not only to make such use of the property which will be beneficial for themselves but should
make such use the property which is for the welfare of the workers who are financially not
well placed in the society and each worker should think of himself as being a trustee of
other workers and strive to safeguard the interest of the other workers.
Many commissions also emphasized the formation of trade unions in India for eg. The Royal
Commission on labour or Whitley commission on labour which was set up in the year 1929-
30 recommended that the problems created by modern industrialization in India are similar
to the problems it created elsewhere in the world and the only solution left is the formation
of strong trade unions to alleviate the labours from their miserable condition and
exploitation.
Development of Trade Union Law in India
Labour legislation in India has a key impact on the development of industrial relations. The
establishment of social justice has been the principle of all the labour legislation in India.
The establishment of the International Labour Organization to uplift the condition of labour
all over the world gave further impetus to the need for well-framed labour legislation in the
country. Several other internal factors like the Swaraj movement of 1921-24, the royal
commission on labour also paved the way for various labour laws and also encouraged the
framers of the constitution to incorporate such laws in the constitution which will benefit
the labourers. Under the constitution, labour is the subject of the concurrent list and both
centre and state can make laws related to the subject. The different legislation on labour in
the country are as follows:
Apprentices Act, 1961: The object of the Act was the promotion of new manpower at skills
and improvement and refinement of old skills through practical and theoretical training.
Contract Labour (Regulation and Abolition) Act, 1970: The object of the Act was the
regulation of employment of contract labour along with its abolition in certain
circumstances.
Employees’ provident funds and misc. Provision Act, 1952: The Act regulated the payment
of wages to the employees and also guaranteed them social security.
Factories Act, 1948: The Act aimed at ensuring the health of the workers who were engaged
in certain specified employments.
Minimum wages Act, 1948: The Act aimed at fixing minimum rates of wages in certain
employments.
Trade Union Act, 1926: The Act provided for registration of trade unions and defined the
laws relating to registered trade unions.
Indian Trade Union (Amendment) Act, 1947
The labours, especially the ones who work in the unorganized sectors lack the capacity to
bargain and this becomes a major reason for their exploitation. The Right of collective
bargaining is provided only to those trade unions which are registered but in India, there are
legislations regarding the recognition of trade unions but there is no single legislation on
registration of trade unions. Realizing the need of having central legislation for registration
of trade unions, the parliament passed the Indian Trade Union (Amendment) Act in the year
1947. The said Act sought to introduce Chapter III-A into the Trade Union Act, 1926, which
enumerated the conditions required for mandatory recognition of any trade union.
however, this Act was never brought to force Therefore, the mandatory recognition of trade
unions is not present under any law in force in India.
Registration of Trade Unions
The Trade Union Act of 1926 was passed in the year 1926 but it came into effect in the year
1927. The Act contains the provisions related to registration, regulation, benefits, and
protection for trade unions. Section 3 to Section 14 of Chapter 2 of the Act deals with the
registration of trade unions in the territory of India.
Section 3: Appointment of Registrars
Section 3 of the Act empowers the appropriate government to appoint a person as the
registrar of a trade union. The appropriate government can also appoint as many additional
and deputy registrars in a trade union as it deems fit for carrying on the purposes of the Act.
Section 4: Mode of Registration
Section 4 of the Act provides for the mode of registration of the trade union. According to
the Section, any seven or more than seven members of a trade union may by application
apply for the registration of the trade union subject to the following two conditions:

 At Least 7 members should be employed in the establishment on the date of the


making of the application.
 At Least 10% or a hundred members whichever is less, are employed in the
establishment should be a part of it on the date of making the application.
Section 6: Provisions to be contained in the rules of a Trade Union
Section 6 of the Act enlists the provisions which should be contained in the rules of trade
union and it provides that no trade union shall be recognized unless it has established an
executive committee in accordance with the provisions of the Act and its rules specify the
following matters namely:

 Name of the trade union;


 The object of the establishment of the trade union;
 Purposes for which the funds with the union shall be directed;
 A list specifying the members of the union shall be maintained. The list shall be
inspected by office bearers and members of the trade union;
 The inclusion of ordinary members who shall be the ones actually engaged or
employed in an industry with which the trade union is connected;
 The conditions which entitle the members for any benefit assured by the rules and
also the conditions under which any fine or forfeiture may be imposed on the
members;
 The procedure by which the rules can be amended, varied or rescinded;
 The manner within which the members of the manager and also the alternative
workplace bearers of the labour union shall be elective and removed;
 The safe custody of the funds of the labour union, an annual audit, in such manner,
as may be prescribed, of the accounts thereof, and adequate facilities for the
inspection of the account books by the workplace bearers and members of the
labour union, and;
 The manner within which the labour union could also be dissolved.
Section 7: Power to call for further particulars and require alteration of the name
Section 7 of the Act furnishes upon the registrar power to call for information in order to
satisfy himself that any application made by the trade union is in compliance with the
Section 5 and 6 of the Act. in matters where the discrepancy is found the registrar reserves
the right to reject the application unless such information is provided by the union.
This Section also confers power to the registrar to direct the trade union to alter its name or
change the name if the registrar finds the name of such union to be identical to the name of
any other trade union or if it finds its name to so nearly resemble the name of any existing
trade union which may be likely to deceive the public or members of either of the trade
union.
Section 8: Registration
According to Section 8 of the Act, if the registrar has fully satisfied himself that a union has
complied with all the necessary provisions of the Act, he may register such union by
recording all its particulars in a manner specified by the Act.
Section 9: Certificate of Registration
According to Section 9 of the Act, the registrar shall issue a registration certificate to any
trade union which has been registered under the provision of Section 8 of the Act and such
certificate shall act as conclusive proof of registration of the trade union.
Section 9A: Minimum requirement related to the membership of a Trade Union
Section 9A of the Act lays down the minimum number of members required to be present in
any union which has been duly registered, the Sections mandates that a trade union which
has been registered must at all times should continue to have not less than 10% or one
hundred of the workmen, whichever is less, subject to a minimum of seven, engaged or
utilized in an institution or trade with that it’s connected, as its members.
Section 10: Cancellation of Registration
The registrar, according to Section 10 of the Act has the power to withdraw or cancel the
registration certificate of any union in any of the following conditions:

 On an application made by the trade union seeking to be verified in such manner as


may be prescribed;
 If the registrar is satisfied with the fact that the trade union has obtained the
certificate by means of fraud or deceit;
 If the trade union has ceased to exist;
 If the trade union has wilfully and after submitting a notice to the Registrar, has
contravened any provision of the Act or has been continuing with any rule which is in
contravention with the provisions of the Act;
 If any union has rescinded any rule provided under Section 6 of the Act.
Section 11: Appeals
According to Section 11 of the Act, any union which is aggrieved by a refusal to register or
withdrawal of registration made by the registrar can file an appeal:

 In any High Court, if the head office of the trade union is located in any of the
presidency towns;
 In any labour court or industrial tribunal, if the trade union is located in such a place
over which the labour court or the trade union has jurisdiction;
 If the head office of the trade union is situated in any other location, an appeal can
be filed in any court which is not inferior to the Court of an additional or assistant
choose of a principal Civil Court of original jurisdiction.
Section 12: Registered office
Section 12 of the Act lays down that all communications and notices to any trade union
must be addressed to its registered office. If a trade union changes the address of its
registered office, it must inform the same to the registrar within the period of fourteen days
in writing and the registrar shall record the changed address in the register mentioned
under Section 8 of the Act.
Section 13: Incorporation of Registered Trade Union
Section 13 of the Act states that every trade union which is registered according to the
provisions of the Act, shall:

 Be corporate by the name under which it is registered.


 have perpetual succession and a common seal.
 Power to contract and hold and acquire any movable and immovable property.
 By the said name can sue and be sued.
Rights and Liabilities of Registered Trade Unions
Section 15 to Section 28 elucidates the rights which a registered trade union has and also
the liabilities which can be imposed against it.
Section 15: Objects on which general funds may be spent
Section 15 of the Act lays down the activities only on which a registered trade union can
spend its funds. These activities include:

 Salaries to be given to the office-bearers.


 The cost incurred for the administration of the trade union.
 Compensation to the workers due to any loss arising out of any trade dispute.
 Expenses incurred in the welfare activities of the workers.
 Benefits conferred to the workers in case of unemployment, disability, or death.
 The cost incurred in bringing or defending any legal suit.
 Publishing materials with the aim of spreading awareness amongst the workers.
 Education of the workers or their dependents.
 Making provisions for medical treatment of the workers.
 Taking insurance policies for the welfare of the workers.
The Section also provides that the reason of non-contribution to the said fund and also a
contribution to the fund can not be made as a criterion for admission into the union.
Section 16: Constitution of a Separate Fund for Political purposes
Section 16 provides that a trade union, in order to promote the civic and political interests
of its members can constitute a separate fund from the contributions made separately for
the said purposes. No member of the union can be compelled to contribute to the fund.
Section 17: Criminal conspiracy in Trade Disputes
Section 17 of the Act states that no member of a trade union can be held liable for criminal
conspiracy mentioned under subSection 2 of Section 120B regarding any agreement made
between the members of the union in order to promote lawful interests of the trade union.
Section 18: Immunity from civil suits in certain cases
Section 18 of the Act immunes the members of trade union from civil or tortious liabilities
arising out of any act done in furtherance or contemplation of any trade disputes.
For example. in general, a person is subject to tortious liability for inducing any person to
breach a contract. But, the trade unions and its members are immune from such liabilities
provided such inducement is in contemplation or furtherance of any trade disputes. Further,
the inducement should be awful and should not involve any aspect of any violence, threat
or any other illegal activity.
Section 19: Enforceability of agreement
According to Section 25, any agreement in restraint of trade is void. But under Section 19 of
the Trade Unions Act, 1926 any agreement between the members of a registered trade
union in restraint of trade activities is neither void nor voidable. However such right is
available only with the registered trade unions as the unregistered trade unions have to
follow the general contract law.
Section 20: Right to inspect the books of Trade Union
According to Section 20 of the Act, the account books and the list of the members of any
registered trade union can be subjected to inspection by the members of the trade union at
such times as may be provided under the rules of the trade union.
Section 21: Rights of minors to membership of Trade Union
Section 21 provides that a person who is above 15 years of age can be a member of any
trade union and if he becomes a member he can enjoy all the rights conferred upon the
members of the trade union subject to the conditions laid down by the trade union of which
he wants to be a part of.
Section 21-A: Disqualifications of office-bearers of Trade Union
Section 21A of the Act lays down the conditions the fulfilment of which disqualifies a person
from being a member of the trade union. The conditions laid down in the Act are as follows:

 If the member has not attained the age of majority


 If he has been convicted by any of the courts in India for moral turpitude and has
been sentenced to imprisonment unless a period of five years has elapsed since his
release.
Section 22: Proportion of office-bearers to be connected with the industry
Section 22 of the Act mandates that not less than half of the members of the trade union
should be employed in the industry or work with which the trade union is connected. For
example trade union is made for the welfare of the agricultural labourers then, as per this
Section half of the members of such a trade union should be employed in agricultural
activities.
Section 23: Change of name
Section 23 states that any registered union is free to change its name provided it does so
with the consent of not less than 2/3rd of its members and subject to the fulfilment of the
conditions laid down in Section 25 of the Act.
Section 24: Amalgamation of Trade Unions
Section 24 lays down that two or more trade unions can join together and form one trade
union with or without dissolution or division of the fund. Such amalgamation can take place
only when voting by half of the members of each trade union has been effectuated and that
sixty per cent of the casted votes should be in favour of the proposal.
Section 25: Notice of change of name or amalgamation
Section 25 of the Act provides that:

 A notice in writing of every change of name and of every amalgamation which is duly
signed by the Secretary and by seven members of the Trade Union changing its
name, and, in the case of an amalgamation, by the Secretary and by seven members
of each and every Trade Union which is a party thereto, should be sent to the
Registrar.
 If the Registrar feels that the proposed name is identical with the name of any other
existing Trade Union or, it so nearly resembles such name as it is likely to deceive the
public or the members of either Trade Union, the Registrar may refuse to register
the change of name.
 If the Registrar of the State in which the head office of the amalgamated Trade
Union is situated is satisfied that the provisions of this Act have complied with the
amalgamation shall be given effect from the date of such registration.
Section 27: Dissolution
Section 27 of the Act talks about the dissolution of a firm as follows:

 If a registered trade union has been dissolved, a notice of such dissolution which
must be signed by seven members and by the Secretary of the Trade Union should
be served to the registrar within 14 days of such dissolution and if the registrar is
satisfied that the dissolution has been effected in accordance with the rules laid
down by the trade union may register the dissolution.
 Where a union has been dissolved but its rules do not lay down the way in which the
fund is to be distributed after its dissolution, the registrar may distribute the funds in
any prescribed manner.
Section 28 : Returns
Section 28 provides that each trade union should send the returns to the registrar annually
on or before such a day as may be prescribed by the registrar. The return includes:

 General statement
 Audit report
 All the receipts and expenditure incurred by the trade union
 Assets and liabilities of the firm on the 31st day of December
Sub-Section 2 of the Section provides that along with the general statement a copy of the
rules of the trade union corrected up to the date of dispatch thereof and a statement
indicating all the changes made by the union in the year to which the statement is referred
to be sent to the registrar.
Whenever any registered trade union alters its rules, such alterations should be conveyed to
the registrar in a period of not less than 15 days from making such alterations.
Regulations
Section 29 to Section 30 of Chapter 4 of the Act lays down the regulations which shall be
imposed on the trade union.
Section 29: Power to make regulations
Section 29 of the Act confers the right on the appropriate government to make provisions in
order to ensure that the provisions of the Act are fairly executed. Such regulations may
provide for any or all of the matters, which are as follows:

 The manner in which a trade union or its rules shall be registered;


 The manner in which the registration of a trade union has to be transferred which
has changed its head office;
 The manner of appointment and qualification of the person who shall audit the
accounts of the registered trade union;
 Circumstances under which the documents kept by the registrar shall be allowed to
be inspected and also the fees that shall be levied in lieu of the inspection so made.
Section 30: Publication of Regulations
Section 30 states that:
1. The power of making regulations conferred to the government is subject to the
condition that such regulation has been made after the previous publication.;
2. The date from which the regulation shall be given effect shall be specified in
accordance with clause (3) of Section 23 of the General Clauses Act, 1897, and the
date should not be less than three months from the date on which the draft of the
proposed regulations was published for general information;
3. The regulations which are made must be specified in the official gazette of India and
it shall have the effect of an enacted law.
Penalties and Procedure
Section 31 to Section 33 of the Trade Union Act lays down the penalties and the procedure
of its application upon a trade union which is subject to such penalty.
Section 31: Failure to submit returns
Section 31 states that:

 If any trade union was required to send any notice, statement or any document to
the registrar under the Act and if the rule did not prescribe a particular person in the
union to provide such information then in case of default each member of the
executive shall be imposed with the fine extendible to five rupees. In case of
continuing default, the fine may be extended to five rupees a week.
 If any person willfully makes or causes to be made any false entry or omission in the
general statement required under Section 28 of the Act shall be punishable with fine
extendible to 500 rupees.
Section 32: Supplying false information regarding Trade Unions
Article 32 states, the following:

 Any person who in order to deceive a member of any trade union or any other
person who purports to be the part of the trade union,
 Gives a copy of the document with the pretext of it containing the rules of a trade
union.
 Which he knows or has reason to believe that it is not a correct copy of such rules
and alteration and,
 Any person with the like intent give the copy of any document purporting it to be a
copy of the rules of a registered trade union which in reality is an unregistered
union,
 Shall be imposed with fine which may extend to two hundred rupees.
Section 33 : Cognizance of offences
Section 33 contains the provisions with respect to the cognizance of offence. It says that no
court which is inferior to presidency magistrate or magistrate of the first class shall try an
offence under the Act. courts can take cognizance of the offences under the Act only in the
following cases:

 When the complaint has been made with the previous sanction of the registrar
 When a person has been accused under Section 32 of the Act, he shall be tried
within six months of the commission of the alleged offence.
Collective Bargaining and Trade Disputes
When an organized body negotiates with the employer and fixes the terms of employment
by means of bargaining is known as Collective Bargaining. The essential element of
Collective Bargaining is that it is between interested parties and not from outside parties.
International labour organization in its manual in the year 1960 defined the meaning of
collective bargaining as:
“Negotiations about working conditions and terms of employment between an employer, a
group of employees or one or more employers organization on the other, with a view to
reaching an agreement.” the terms of agreement are used to ascertain the rights and
obligations by which each party is bound towards one another during the course of
employment.
Section 8 of the Industrial Relations Act 1990 define trade dispute, according to the Act,
industrial dispute refers to any dispute which arises between the employers and the
workers and it is usually in connection with any one of the following:

 employment or non-employment,
 the terms or conditions of the employment,
 Something which affects the employment of any person.
Essential conditions for collective bargaining
Favourable political and social climate: all the collective bargaining which took place in the
past bears the testimony to the fact that favourable political and social climate is the
prerequisite of collective bargaining. The reason for the same is quite obvious as almost all
the trade unions in India subscribe to one or the other political view and therefore, trade
unions usually favour the employees not on the basis of the merit of the issues they raise
but on the basis of their political considerations.
Trade union: in any democratic country like India which recognizes the right to speech as a
fundamental right, the right to form a trade union is a direct consequence of it and so all the
employers should recognize the trade unions and its representative.
Problem-solving attitude: it means that both the parties while negotiating a bringing up
their relative concerns should adopt a problem-solving attitude and should aim at amicably
solving the problem without trying to put the opposite party into a loss.
Continuous dialogue: the dialogue between the employer and the workers may sometimes
end up without any fruitful negotiation or there may arise a bargaining impasse, in such a
case the free flow of dialogue between the employer and employee should not be stopped
and sometimes keeping aside the bone of contention helps bring up a better solution.
Purposes of collective bargaining
To provide an opportunity for the workers to voice their complaints and grievances
regarding the working conditions.
To pave the way for the employer and workers to reach an amicable solution peacefully
without having any ill will towards one another.
To sort out all the disputes and conflicts between the employer and worker.
To prevent any dispute which is likely to take place in the future by mutually agreeing on the
contract.
To foster a peaceful and stable relationship between the workers and the organization.
Position in India
In India, collective bargaining remained limited in its application and has been restricted by
different labour legislations in India. Different labour laws made different provisions with
respect to the working conditions of the workers. Some of the labour legislation in India are
as follows:

 The Factories Act, 1948 made provisions for the betterment of the workers in
respect of their health, safety, welfare and other aspects while the workers are
employed in factory work. However, all the provisions of the Act were not applicable
in all the factories, for example, the provision for restroom will be applicable only if
there are 150 or more workers.
 Employees Provident and Miscellaneous Provisions Act, Maternity Benefit Act and
Payment of Gratuity Act.
 Industrial Disputes Act, 1947, lays down the procedures by which the settlement of
industrial disputes has to be done. Its procedural aspects are applicable to all
enterprises for the settlement of industrial disputes.
On a closer view of the labour laws in India indicate that mostly the workers who are
employed in the organized sectors of the economy are protected under the various labour
legislations. According to the Fifth Economic Census of 1999, it was revealed that more than
97 per cent of the enterprises employ less than ten workers, and most of these employ less
than five workers. This clearly shows that labour laws apply to less than 3 per cent of
enterprises.

Further, the acceleration of in formalization of the workforce with the onset of liberalization
has changed the formal sector also in terms of shifting the jobs from formal to the informal
sector and along with it in formalization of jobs. Today, in the formal sector, a number of
formal workers are about 33.7 million and informal workers about 28.9 million (2004-05).
Increase in the employment (in whatever amount) in the formal sector has largely been
informal in nature. Which in turn has been reflected on the trade bargaining?
Agreements for collective bargaining
In India, Following types of agreements are prevalent for collective bargaining:
Bipartite agreement: These agreements usually result into voluntary negotiations between
the employer and employees and are usually binding per se.
Settlements: Settlements usually arise out of the conciliation process and they are usually
tripartite in nature as they involve three parties which are employer, employee and
conciliation officer.
Consent awards: When the parties reach an agreement while the dispute between them is
pending before the adjudicatory body. Such agreements are incorporated in authority’s
award and are binding on the parties under the dispute.
The Trade Unions (Amendment) Bill, 2019
1. The Trade Unions (Amendment) Bill, 2019 was introduced in Lok Sabha by the
Minister of Labour and Employment, Santosh Kumar Gangwar, on January 8, 2019.
The Bill amends the Trade Unions Act, 1926, which provides for the registration and
regulation of trade unions.
2. The Bill seeks to provide for recognition of trade unions or a federation of trade
unions at the central and state level by the central and state government,
respectively. Such trade unions or the federation of trade unions will be recognised
as Central Trade Unions or State Trade Unions, as the case may be.
3. The central or state government may make rules for: (i) the recognition of such
Central or State Trade Unions, and (ii) the authority to decide disputes arising out of
such recognition, and the manner of deciding such disputes.
Conclusion
Trade Union Act of 1926 is welfare legislation that has been enacted to protect the workers
in the organized and unorganized sector from inhuman treatment and protection of their
human rights. As such the legislation contains the provisions for registration, regulation,
benefits, and protection for trade unions. Thereby, benefitting the workers.
Trade unions are important organs for the democratic development of any country as it puts
up the needs and demands of the workers by collective bargaining. Collective bargaining is
an important aspect of the employer-employee relationship. However, collective bargaining
is not provided to all the trade unions but is only provided to those trade unions which are
recognized. Therefore, the demand for mandatory recognition of trade union which has not
been provided under the Trade Union Act 1926 has been raised time and again by the
workers. Today, the growth of media has resulted in the empowerment of trade unions and
they have turned into influential pressure groups not only in industrial sectors but also in
agricultural and other allied sectors.
MCQS

1. Creation of a political fund by trade unions under the Trade Union Act is
(A) Compulsory
(B) Optional
(C) by donation from political parties
(D) No such provision in the Act
ANS: B

2. What will be the minimum number of workers required for organizing a trade union for
registration according to the latest amendment under the Trade Unions’ Act, 1926
(A) 7 workers
(B) 10 %
(C) 100
(D) 10% or 100 or 7
ANS: D

3. The minimum subscription rate for members of trade unions of rural workers shall not
be less than
(A) Rs. 12 per annum
(B) Rs. 3 per annum
(C) Rs. 1 per annum
(D) No such provision
ANS: C

4. A union may claim recognition for an industry in a local area, if it has membership of
(A) 10% of the workers in that industry.
(B) 15% of the workers in that area.
(C) 25% of the workers of that industry in that area.
(D) 30% of the workers in similar industry.
ANS: C

5. A person is qualified to be chosen as a member of the executive or any other office


bearer of the registered trade union if he attained the age of
(A) Fifteen years
(B) Eighteen years
(C) Twenty one years
(D) Twenty five years
ANS: B
6. The registered trade union can collect political fund from its members as a
(A) General fund
(B) Cannot collect political fund
(C) Separate fund from the interested members
(D) Only from political parties
ANS: C

7. Not more than 50% of members of the office bears of Trade union can be outsiders, as
per provisions of legislations.
(A) Industrial Dispute Act
(B) Trade Union Act
(C) Mines Act
(D) ESI Act
ANS: B

8. Trade union means any combination formed primarily for the purpose of regulating the
relations between
(A) Workmen and employers permanently
(B) Workmen and workmen permanently
(C) Workmen and employers, workmen and workmen, employers and employers
temporary or permanent
(D) Workmen and employers, workmen and workmen, employers and employers
permanently
ANS: C

9.The Trade Unions Act empowers a trade union to create a General Fund for its
administration and maintenance. A trade union purchased shares in the Unit Trust of India
to enhance its General Fund Account. Which of the following is not correct as per law?
(A) The trade union can raise its fund by such type of investments.
(B) The trade union can raise its funds by such investments with the permission of
appropriate government.
(C) The trade union can raise its fund by such investments with the consent of its general
body.
(D) The trade union cannot do so as it is an attempt towards profit making.
ANS: D

10. The basic principle underlying the enactment of the Trade Unions Act is:
(A) To protect interests of workers against disregard of human elements in industries.
(B) To regulate the relationship of workers and their organization by regulating the
balance of power.
(C) To provide strength to workers to settle the industrial disputes.
(D) To provide security to workers against the occupational hazards.
ANS: B
Theofficersadda allexamtricks All exam tricks Allexamstricks

EPFO apfc
Assistant commissioner
LABOUR LAW
Industrial Disputes Act
(LATEST UPDATES + MCQ'S)
Industrial Disputes Act, 1947 (Latest Updates + Mcq’s)

Introduction
The main purpose of the Industrial Disputes Act, 1947 is to ensure fair terms between
employers and employees, workmen and workmen as well as workmen and employers. It
helps not only in preventing disputes between employers and employees but also help in
finding the measures to settle such disputes so that the production of the organization is
not hampered. In this unit, we are going to discuss the Industrial Disputes Act, 1947 and its
importance. It came into force April 1, 1947. This unit encompasses the different authorities
and their duties in the settlement of disputes. It also discuss about the reference of
disputes. Through this unit, you will be able to know about the different award given by the
different authorities under the Act. Thus, you will able to understand through this unit, the
procedures of settlement of the disputes as well as the duties of different authorities as well
as the way of reference of disputes.
Objectives:
The objective of the Industrial Disputes Act is to secure industrial peace and harmony by
providing machinery and procedure for the investigation and settlement of industrial
disputes by negotiations.
The laws apply only to the organised sector. Chapter V-B, introduced by an amendment in
1976, requires firms employing 300 or more workers to obtain government permission for
layoffs, retrenchments and closures. A further amendment in 1982 (which took effect in
1984) expanded its ambit by reducing the threshold to 100 workers.
The Act also lays down:
The provision for payment of compensation to the workman on account of closure or lay off
or retrenchment.
The procedure for prior permission of appropriate Government for laying off or retrenching
the workers or closing down industrial establishments Unfair labour practices on part of an
employer or a trade union or workers.
Applicability:-
The Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods and
services irrespective of the number of workmen employed therein.
Every person employed in an establishment for hire or reward including contract labour,
apprentices and part-time employees to do any manual, clerical, skilled, unskilled, technical,
operational or supervisory work, is covered by the Act.
This Act though does not apply to persons mainly in managerial or administrative capacity,
persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing
managerial functions and persons subject to Army Act, Air Force and Navy Act or those in
police service or officer or employee of a prison.
What is the Indian Industrial Dispute Act of 1947?
The Industrial Dispute Act of 1947 has been described as the latest milestone in the
industrial development in India. The Act has seen new additions in the past few years.
However, the principal objectives of the Industrial Dispute Act of 1947 are:
Objectives of Indian Industrial Dispute Act:
1. To encourage good relations between labor and industries, and provide a medium of
settling disputes through adjudicator authorities.
2. To provide a committee for dispute settlement between industry and labor with the right
of representation by a registered trade union or by an association of employers.
3. Prevent unauthorized strikes and lockouts.
4. Reach out to labor that has been laid-off, unrightfully dismissed, etc.
5. Provide labor the right to collective bargaining and promote conciliation.
New Indian Industrial Dispute Act Principles:
1. A permanent conciliation committee for the speedy settlement of industrial disputes.
2. Compulsory arbitration in public utility services and enforcement of arbitration awards.
3. Strikes during proceedings of conciliation and arbitration meetings are prohibited.
4. Set aside specific times for conciliation and arbitration meetings.
5. Employers have to be obliged to communicate with labor unions.
6. Mutual consultation has to be set up between industry and labor by the Works
Committee.
7. Disputes between labor and industry have to be forwarded to an Industrial Tribunal. If the
Industrial tribunal fails to handle the case, the case should be forwarded to the appropriate
government.
Industrial Dispute-Sec. 2 (k)
Industrial Dispute is “any dispute of difference between employers and employers or
between employers and workmen; or between workmen and workmen, which is connected
with the employment or non-employment or the terms of employment or with the
conditions of labour of any person.”
Industrial dispute as defined under Sec. 2(k) exists between-
Parties to the dispute who may be

 Employers and workmen


 Employers and Employers
 Workmen and workmen
a) There should be a factum of dispute not merely a difference of opinion.
b) It has to be espoused by the union in writing at the commencement of the dispute.
Subsequent espousal will render the reference invalid. Therefore date when the dispute was
espoused is very important.
c) It affects the interests of not merely an individual workman but several workmen as a
class who are working in an industrial establishment.
d) The dispute may be in relation to any workman or workmen or any other person in whom
they are interested as a body.
History of The Law of Industrial Disputes
The World War I (1914-1919) brought a new awakening among the working class people
who were dominated by the employers regarding the terms and conditions of service and
wages. The workers resorted to strikes to fulfill their demands and the employers retaliated
by declaring lockouts. During the period 1928-29 the numerous strikes and lock-outs forced
the Government to enact the Trade Disputes Act, 1929.
The Trade Dispute Act, 1929 was introduced for the settlement of industrial disputes. This
Trade Union Act gave the trade unions a legal status. The main object of the Act was to
make provision for the establishment of Courts of Enquiry and Boards of Conciliation with a
view to investigating and settling trade disputes.
But, this Act failed to create favorable atmosphere in the industry and settle the disputes.
The main defect of the Act was that no provision was has been made to render the
proceedings institutable under the Act while restraint had been imposed on the right of
strike and lock-out in the public utility services. But, later this defect was overcome by
empowering under Rule 81-A, of the Defense of Indian Rules to refer industrial disputes to
adjudicator for settlement during the Second World War (1938-1945).
The rule provide speedy remedies for industrial disputes by compulsory reference of
disputes to conciliation or adjudication, by making the awards of adjudicators legally binding
on the parties, by prohibiting strikes and lock-outs during the pendency of conciliation or
arbitration proceeding.
With the termination of the Second World War, Rule 81-A was about to lapse on 1st
October, 1946, but it was kept alive by recourse to Government’s Emergency Powers. The
main provision was retained in the Industrial Disputes Act, 1947.
Authorities Under The Act And Their Duties
The Industrial Dispute Act, 1947 makes provision for the investigation and settlement of
disputes that may hamper the peace of the industry. It ensures harmony and cordial
relationship between the employers and employees. The Act provides self-contained code
to compel the parties to resort to industrial arbitration for the resolution of disputes. It also
provides statutory norms besides helping in the maintaining of cordial relation among the
employers and employees ,reflecting socio-economic justice.
The act provides for the following authorities for Investigation and Settlement of industrial
disputes:
(i) Works Committee
(ii) Conciliation officer
(iii) Boards of Conciliation
(iv) Court of Inquiry
(v) Labour Court
(vi) Labour Tribunals
(vii) National Tribunals
Let us discuss these authorities in detail:
Works Committee (Section 3):
The works committee is a committee consisting of representatives of employers and
workmen (section3). The works committee is a forum for explaining the difficulties of all the
parties.The main objective of the works committee is to solve the problems arising in the
day-to-day working of a concern and to secure industrial harmony. The function of the
working committee is to ascertain the grievances of the employees and to arrive at some
agreement. The committee is formed by general or special order by the appropriate
Government in an industrial establishment in which 100 or more workmen are employed or
have been employed on any day in the preceding 12 months. It consists of the
representatives of employers and workmen engaged in the establishment.
It shall be the duty of the working committee to promote measures for securing and
preserving amity and good relations between the employers and workmen and, to that end,
to comment upon matters of their common interest or concern and to endeavour to
compose any material difference of opinion in respect of such matters and decision of the
works committees are not binding.
Conciliation officer (Section 4):
For promoting and settlement of industrial disputes the appropriate Government may by
notification in the official Gazette, appoint such number of conciliation officer as it thinks fit.
The main objective of appointing conciliation officer is to create congenial atmosphere
within the industry and reconcile the disputes of the workers and the employers. He may be
appointed for a specified area or for specified industries in a specified area or for one or
more specified industries and either permanently or for a limited period.
The duty of the conciliation officer is not judicial but administrative. He has to hold
conciliation proceedings, investigate the disputes and do all such things as he thinks fit for
the purpose of inducing the parties to arrive at a fair settlement of the disputes. The
conciliation officer is entitled to enter an establishment to which the dispute relates, after
reasonable notice and also to call for and inspect any document which he consider relevant.
He has to send a report and memorandum of settlement to appropriate Government. The
report by the conciliation officer has to be submitted within 14 days of the commencement
of the conciliation proceeding or shorter period as may be prescribed by the appropriate
Government. The conciliation officer has the power to enter the premises as well can call for
and inspect documents.
Boards of Conciliation (Section 5):
The appropriate Government may by notification in the official Gazette, constitute a Board
of Conciliation for the settlement of industrial disputes. The Board shall consist of a
chairman and 2 or 4 other members in equal numbers representing the parties to the
disputes as the appropriate Government thinks fit. The Chairman shall be an independent
person. A person is “independent” for the purpose of appointment to a Board, Court or
Tribunal if he is uncommitted with the dispute or with any industry directly affected by such
dispute.
He may be a shareholder of a company connected with or likely to be affected by such
disputes. But in such a case he must disclose to the Government the nature and intent of his
share [Section 2(i)]. Where the appropriate Government is of the opinion that any industrial
disputes exist in an industry, it may refer by order in writing to the Board of Conciliation for
settling industrial disputes.
The Board of Conciliation has to bring about a settlement of the dispute. He has to send a
report and memorandum of settlement to appropriate Government. He has to send a full
report to the Appropriate Government setting for the steps taken by the Board in case no
settlement is arrived at. The Board of Conciliation has to communicate the reasons to the
parties if no further reference is made. The Board has to submit its report within 2 months
of the date on which the dispute was referred to it within the period what the appropriate
Government may think fit. The report of the Board shall be in writing and shall be signed by
all the members of the Board.
Court of Inquiry (Section 6):
The appropriate Government may by notification in the official Gazette, constitute a court
of inquiry into any matter appearing to be connected with or relevant to settlement of
industrial disputes having an independent person or of such independent persons as the
appropriate Government may think fit. The court consists of two or more members one of
whom shall be appointed by the Chairman. Within a period of 6 months, the court has to
send a report thereon to the appropriate Government from the commencement of its any
inquiry. This period is not mandatory and it may be extend.
It has the same powers as are vested in a Civil Court under the Code of Civil Procedure 1908,
in the following matters-
a. enforcing the attendance of any person and examining him on oath,
b. compelling the production of documents and material objects,
c. issuing commissions for the examination of witnesses,
d. in respect of such other matters as may be prescribed.
The report of the Court must be signed by all the members. A member can submit a note of
dissent. The Report together with the dissenting note must be published by the appropriate
Government within 30 days from its report. A court of enquiry has no power to improve any
settlement upon the parties.
Labour Court (Section 7):
The appropriate Government may by notification in the official Gazette, constitute one or
more labour court for adjudication of industrial disputes relating to any matters specified in
the Second Schedule. A labour court consists of one person only to be appointed by the
appropriate Government.
The main function of the labour court is to hold its proceedings expeditiously and submit its
award as the proceeding concludes.
A person shall be presiding officer of a labour court unless—
a. he is or has been, a Judge of the High court,
b. he has for a period of not less than three years, been a District Judge or an Additional
District Judge or
c. he has held any judicial office in India for not less than seven years; or
d. he has been the presiding officer of a Labour Court constituted under any provincial Act
or State Act for not less than five years.
e. He must be an “ independent “ person and must not have attained the age of 65 years.
Labour Tribunals (Section 7- A):
The appropriate Government may by notification in the official Gazette, constitute one or
more Industrial Tribunals for adjudication of industrial disputes. A Tribunal shall consist of
one person to be appointed by the appropriate Government. The Appropriate Government
may appoint two persons as assessors to advise the Tribunel. The person shall be not
qualified unless—
a. he is, a Judge of the High court,
b.. he has for a period of not less than three years, been a District Judge or an Additional
District Judge.
c. The appropriate Government may, if it so thinks fit, may appoint two persons as assessors
to advise the Tribunal in the proceeding before it.
The functions of the Tribunals are very much like those of a body discharging judicial
functions, although it is not a Court. Its power is different from that of a Civil Court. The
proceedings before an Industrial Tribunal are quasi-judicial in nature with all the attributes
of a Court of Justice. The Government is empowered under Section 7-A of the Act to
constitute for a limited time which comes to an end automatically on the expiry of the said
period for any particular case. The duties of Industrial Tribunal are identical with the duties
of Labour Court, i.e. on reference of any industrial disputes; the Tribunal shall hold its
proceedings expeditiously and submit its award to the appropriate Government.
National Tribunals ( Section 7 B)
The Central Government may, by notification in the official Gazette, constitute one or more
National Industrial Tribunals for the adjudication of industrial disputes. National Industrial
Tribunals are involve only incase of the questions of national importance or if they are of
such a nature that industrial establishments situated in more than one State are likely to be
interested in, or affected by, such industrial disputes. It consists of one person only to be
appointed by the Central Government.
The person shall not be qualified for appointment as the presiding officer unless he is, or has
been, a Judge of a High Court. Beside these, the Central Government may, if it thinks fit,
appoint two persons as assessors to advise the National Tribunal in the proceedings before
it.
Reference of Disputes
Any industrial disputes should have to referred by the Appropriate Government under
section 10 for adjudication, to the Conciliation Board, Labour Court, Court of Inquiry or
Industrial Tribunal or National Tribunal.
A. Reference of disputes to various Authorities:
A matter is referred to the Conciliation Board for promoting the settlement of the disputes.
The Conciliation Board is to promote settlement and not to adjudicate.
But if the purpose of reference of the matter is investigatory instead of conciliatory or
adjudicatory, it should be referred to Court of Inquiry. Again, if the matter is related to the
Second Schedule or Third Schedule, it is referred to the Labour court.
On the other hand, any matter of the industrial disputes which may relate to the Second
Schedule or Third Schedule may refer to the Industrial Tribunal.
Where the disputes relate to a public utility service and a notice of the same is given, it
becomes mandatory of the Appropriate Government or the Central Government to refer
the matter for adjudication. But the power of the Appropriate Government to make a
reference is discretionary and it is open to judicial review.
B. Reference of disputes to National Tribunal involving question of importance, etc:
When industrial disputes are of national importance or they are likely to be affect the
industrial establishments situated in more than one State then they are referred to the
National Tribunal by the Appropriate Government for adjudication. Again if any matter
referred to National Tribunal is pending in a proceeding before a Labour Court or Tribunal,
the proceeding before Labour Court or Tribunal becomes invalid. On the other hand, it is not
lawful to refer any matters which are under adjudication before the National Tribunal to
Labour Court or Tribunal.
C. Reference on application of parities:
If a person individually or jointly applies any matter in a prescribed manner to the
Conciliation Board, Labour Court, and Court of Inquiry, Industrial Tribunal or National
Tribunal for adjudication and the Appropriate Government on being satisfied on the same
specifies such time limit as it these proper to submit the award.
D. Time limit for submission of awards:
Section 10 (2A) of the Act specifies the time period for submitting award by the Appropriate
Government, when any reference is made to the Labour Court, Industrial Tribunal or
National Tribunal for adjudication.
Voluntary Reference of Disputes To Arbitration:
The settlement of industrial disputes may be done through voluntary reference under
section 10-A.
i) When an industrial dispute is not referred to Conciliation Board, Labour Court, and Court
of Inquiry, Industrial Tribunal or National Tribunal for adjudication, the employer and the
workmen through a written agreement forward the matter for arbitration specifying the
names of the arbitrator.
ii) The arbitration agreement should be made in prescribed form and should be signed by
the parties.
iii) Within one month from the receipt of the arbitration agreement which should be
forwarded to Appropriate Government and the Conciliation officer, a copy of the same has
to be published in the official Gazette.
iv) The arbitrator or arbitrators shall have to investigate the disputes and submit to the
Appropriate Government the award.
v) The award should be signed by the arbitrator or the arbitrators.
vi) The strike or lock-out in connection with the disputes should be prohibited by an order of
the Appropriate Government.
Procedure And Powers of Authorities
Section 11 provides that every Conciliation officer or member of a Board or Court or
Presiding officer of a Labour Court, Industrial Tribunal or National Tribunal after giving
notice can enter the premises occupied by any establishment to which the disputes relate
and follow such procedure as the arbitrator or other authority concerned may think fit. They
have the same power as are vested in the Civil Court under the Code of Civil Procedure,
1908 while trying a suit in matters like:
a. enforcing the attendance of any person and examining him on oath,
b. compelling the production of documents and material objects,
c. issuing commissions for the examination of witnesses,
d. in respect of other such other matters as may be prescribed.
An assessor or assessors may be appointed by the Conciliation Board, Labour Court, and
Court of Inquiry, Industrial Tribunal or National Tribunal for advice having special knowledge
on that matter. The Conciliation officer may enforce the attendance of any person for the
purpose of examination of such person or call for and inspect the documents. The
Conciliation Board, Labour Court, and Court of Inquiry, Industrial Tribunal or National
Tribunal has the full power to determine to what extent, by whom and subject to what
conditions costs are to be paid.
Thus, it is seen that section 11 (1) has given wide power to the Conciliation Board, Labour
Court, and Court of Inquiry, Industrial Tribunal or National Tribunal in the settlement of
industrial disputes.
Award And Settlement
Award means an interim or a final determination of any industrial disputes or of any
question relating thereto by any Labour Court, Tribunal or National Tribunal and includes an
arbitration award made under section 10A Section 2 (b).
The report of the Board of Conciliation or the Court of Inquiry shall be in writing and shall be
signed by all the members and the award of a Labour Court and Industrial Tribunal shall be
in writing and shall be signed by the Presiding officer. Section 21 requires certain matters to
be kept confidential and it is further provided by the section that certain matters are not
disclosed without the written consent of the secretary of the trade union or firm or
company in question as the case may be of any information obtained by Conciliation Board,
Labour Court, and Court of Inquiry, Industrial Tribunal or National Tribunal. An award
usually is enforceable on the expiry of 30 days from the date of its publication except when
the Appropriate Government declares that the award given by the Labour Court and
Industrial Tribunal shall not be enforceable on the expiry of 30 days from the date of its
publication.
Again, it may not be enforceable on the expiry of 30 days from the date of its publication, if
the Central Government get the opinion regarding the award given by the National Tribunal.
In such case, the Appropriate Government or the Central Government may within 90 days
from the date of publication of the award under section 17 make an order rejecting or
modifying the award. But, if it appears that the award given by the Industrial Tribunal is fair
and just, it is authorised to issue direction that the award takes effect retrospectively.
Persons on whom settlements and awards are binding (Section 18):
1. Settlement and awards are binding on all the parties under the agreement arrived at
between the employers and workers in the course of conciliation proceedings.
2. An arbitration award is binding on the concerned parties of the agreement who referred
the disputes to arbitration.
3. An arbitration award or settlement award or award of Labour Court, and Industrial
Tribunal or National Tribunal is binding on—
a. All the parties to the disputes,
b. On all other parties who are summoned to appear in the proceeding as parties to the
disputes, unless the Board, Arbitrator, Labour Court, Industrial Tribunal or National Tribunal
in the settlement of industrial disputes as the case may be, records the opinion that they
were so summoned without proper cause.
c. Where a party referred to Clause (a) and Clause (b) is an employer, his heirs, successors
assigned in respect of the establishment to which the dispute relates.
d. But if the parties referred to in Clause (a) or Clause (b) is of workmen, all person who
were employed in the establishment or part of the establishment, as the case may be, to
which the disputes relates on the date of the dispute and all persons who subsequently
become employed in that establishment or part.
A settlement arrived at in the course of conciliation proceedings before a Conciliation officer
shall come into operation on such date as is agreed upon by the parties to the disputes and
on the date on which the memorandum of the settlement is signed by the parties to the
disputes when no date is agreed. But, if a person breaches any term of any settlement or
award which is binding on him he shall be punishable with imprisonment for a term which
may extend to 6 months or with fine or both.
Conclusion
In this unit, we have discussed the following issues:
# The Industrial Disputes Act, 1947 makes provision for the investigation and settlement of
disputes through Conciliation officer or member of a Board or Court or Presiding officer of a
Labour Court, Industrial Tribunal or National Tribunal.
# Any industrial disputes may be referred by the Appropriate Government under section 10
for adjudication, to the Conciliation Board, Labour Court, and Court of Inquiry, Industrial
Trkibunal or National Tribunal.
# The settlement of industrial disputes may be done through voluntary reference under
section 10-A
# The conciliation officer or a member of a Board or Court or the Presiding officer of a
Labour Court, Industrial Tribunal or National Tribunal has the same power as are vested in
the Civil Court under the Code of Civil Procedure, 1908.
Latest Update in Separate File (The Industrial Relations Code)
MCQ’S

1. Under which of the following legislations there is a provision called ‘protected


workmen’?
(A) Trade Unions Act, 1926
(B) Industrial Employment (Standing Orders) Act, 1946
(C) Factories Act, 1948
(D) Industrial Disputes Act, 1947
ANS: D

2. Which one of the following is not a machinery for settlement of Industrial Disputes
under the Industrial Disputes Act, 1947?
(A) Conciliation Officer
(B) Board of Conciliation
(C) Collective Bargaining
(D) Labour Court
ANS: C

3. Under which Schedule of the Industrial Disputes Act, 1947 Public Utility Services have
been listed out?
(A) 1st Schedule
(B) 2nd Schedule
(C) 3rd Schedule
(D) 4th Schedule
ANS: A

4. Which of the following statements about the definition of industry as given in the
Industrial Disputes Act, 1947 is not right?
(A) It means any business, trade, undertaking, manufacture or calling of employers.
(B) It includes any calling, service, employment, handicraft or industrial occupation or
avocation of workmen.
(C) This definition has been revised in 1982 in a leading case of 1978.
(D) The revised definition has been implemented after due notification.
ANS: D

5. ‘First come last go and last come first go’ is the principle of
(A) Lay-off
(B) Closure
(C) Retrenchment
(D) Dismissal
ANS: C
6. Which of the following is machinery for settlement of industrial disputes?
(A) Indian Labour Conference
(B) Joint Management Council
(C) Industrial Tribunal
(D) Standing Labour Committees
ANS: C

7. ‘Award’ under Industrial Disputes Act, 1947 is


(a) Not interim determination of labour court
(b) Not arbitration award under Section 10A
(c) Not final determination of labour court
(d) Not final determination of arbitration award under section 10A
(A) All statements are true.
(B) (a) and (d) are true.
(C) (b) is true.
(D) All statements are wrong.
ANS: D

8. Grievance Handing Machinery is given in


(A) Industrial Disputes Act
(B) Factories Act
(C) Both (A) and (B)
(D) None of the above
ANS: A

9. The dispute of individual workman is deemed to be industrial dispute if the dispute or


difference is connected with or arising out of the following where no other workman nor
any union of workman is a party to the dispute.
(A) Grievance of an individual workman.
(B) Discharge of an individual workman.
(C) Dismissal of an individual workman.
(D) Discharge, dismissal, retrenchment or otherwise termination of services of an
individual workman.
ANS: D

10. List of unfair labour practices on the part of the trade unions and employers was
included in
(A) Factories Act
(B) Industrial Dispute Act
(C) Trade union Act
(D) None of the above
ANS: B
11. Match the following schedules under the I. D. Act, 1947
(a) I schedule (i) conditions of service for change of which notice is to be given
(b) II and III schedules (ii) Labour courts and Industrial Tribunals
(c) IV schedule (iii) Industries which may be declared as public utility services
(d) V schedule (iv) Unfair labour practices
ANS: C

12. Which of the following is an illegal industrial action as per law?


(A) Mutual Insurance
(B) Collective Bargaining
(C) Lock out
(D) Gherao
ANS: D

13. Under the Industrial Disputes Act, which of the following cannot be considered as an
industrial dispute?
(A) When employer fails to keep his verbal promises
(B) When closure is a pretence
(C) When demand made for alteration of conditions of service of employees in a
cooperative society
(D) When the lock-out is in disguise of closure
ANS: C

14. Which of the following statements about the Grievance Redressal Machinery given
under the Industrial not true?
(A) Every industrial establishment employing 20 or more workmen shall have one or more
Grievance Redressal Committee.
(B) Grievance Redressal Committee can resolve any dispute arising in the industrial
establishment.
(C) It is a bipartite committee with equal number of members representing the employer
and workmen.
(D) There is a 45 days time limit from the date of written application to complete the
proceedings.
ANS: B

15. The ongoing globalization in India requires drastic changes under which of the labour
legislations?
(A) The Factories Act
(B) The Employees’ State Insurance Act
(C) The Industrial Disputes Act
(D) The Employees’ Provident Funds Act
ANS: C
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Assistant commissioner
LABOUR LAW
Factories act 1948
(LATEST UPDATES + MCQ'S)
The Factories Act,1948 , (Latest Updates + Mcq’s)

There has been rise of large scale factory/ industry in India in the later half of nineteenth
century. Major Moore, Inspector-in- Chief of the Bombay Cotton Department, in his Report
in 1872-73 first of all raised the question for the provision of legislation to regulate the
working condition in factories; the first Factories act was enacted in 1881.
Since then the act has been amended on many occasions. The Factories Act 1934 was
passed replacing all the previous legislation in regard to factories. This act was drafted in the
light of the recommendations of the Royal Commission on Labour. This Act has also been
amended suitably from time to time.
The experience of working of the Factories Act, 1934 had revealed a number of defects and
weakness which have hampered effective administration of the Act, and the need for
wholesale revision of the act to extend its protective provisions to the large number of
smaller industrial establishments was felt.
Therefore, the Factories Act, 1948 consolidating and amending the law relating to labour in
factories, was passed by the Constituent Assembly on August 28, 1948. The Act received the
assent of Governor General of India on 23 September 1948 and came into force on April 1,
1949.
Objective of Factories Act ,1948
The main objectives of the Indian Factories Act, 1948are to regulate the working conditions
in factories, to regulate health, safety welfare, and annual leave and enact special provision
in respect of young persons, women and children who work in the factories.
1.Working Hours:
According to the provision of working hours of adults, no adult worker shall be required or
allowed to work in a factory for more than 48 hours in a week. There should be a weekly
holiday.
2.Health:
For protecting the health of workers, the Act lays down that every factory shall be kept
clean and all necessary precautions shall be taken in this regard. The factories should have
proper drainage system, adequate lighting, ventilation, temperature etc.
Adequate arrangements for drinking water should be made. Sufficient latrine and urinals
should be provided at convenient places. These should be easily accessible to workers and
must be kept cleaned.
3. Safety:
In order to provide safety to the workers, the Act provides that the machinery should be
fenced, no young person shall work at any dangerous machine, in confined spaces, there
should be provision for man-holes of adequate size so that in case of emergency the
workers can escape.
4. Welfare:
For the welfare of the workers, the Act provides that in every factory adequate and suitable
facilities for washing should be provided and maintained for the use of workers.
Facilities for storing and drying clothing, facilities for sitting, first-aid appliances, shelters,
rest rooms’ and lunch rooms, crèches, should be there.
5. Penalties:-
The provisions of The Factories Act, 1948, or any rules made under the Act, or any order
given in writing under the Act is violated, it is treated as an offence. The following penalties
can be imposed:-
(a) Imprisonment for a term which may extend to one year;
(b) Fine which may extend to one lakh rupees; or
(c) Both fine and imprisonment.
If a worker misuses an appliance related to welfare, safety and health of workers, or in
relation to discharge of his duties, he can be imposed a penalty of Rs. 500/-.
Applicability of Factories Act, 1948
The Act is applicable to any factory whereon ten 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 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 without the aid of power, or is ordinarily so carried on; but this does not include a mine,
or a mobile unit belonging to the armed forces of the union, a railway running shed or a
hotel, restaurant or eating place.
Importance of Factories Act, 1948
The Factories Act, 1948 is a beneficial legislation. The aim and object of the Act is essentially
to safeguard the interests of workers, stop their exploitation and take care of their safety,
hygiene and welfare at their places of work. It casts various obligations, duties and
responsibilities on the occupier of a factory and also on the factory manager. Amendments
to the Act and court decisions have further extended the nature and scope of the concept of
occupier, especially vis-a-vis hazardous processes in factories.
Definitions
1.Who is an Occupier?
According to section 2(n) "occupier" of a factory means the person, who has ultimate
control over the affairs of the factory,
Provided that-
(i) in the case of a firm or other association of individuals, any one of the individual partners
or members thereof shall be deemed to be the occupier;
(ii) in the case of a company, any one of the directors, shall be deemed to be the occupier:
(iii) 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, as
the case may be, 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,
(1) the owner of the dock shall be deemed to be the occupier for the purposes of any matter
provided for by or under-
(a) section 6, section 7, section 7A, section 7B, section 11 or section 12;
(b) section 17, in so far as it relates to the providing and maintenance of sufficient and
suitable lighting in or around the dock;
(e) section 18, section 19, section 42, section 46, section 47 or section 49, in relation to the
workers employed on such repair or maintenance;
(2) the owner of the ship or his agent or master or other officer-in-charge of the ship or any
person who contracts with such owner, agent or master or other officer-in-charge to carry
out the repair or maintenance work shall be deemed to be the occupier for the purposes of
any matter provided for by or under section 13, section 14, section 16 or section 17 (save as
otherwise provided in this proviso) or Chapter IV (except section 27) or section 43, section
44 or section 45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or section 108, section
109 or section 110, in relation to-
(a) the workers employed directly by him or by or through any agency; and
(b) the machinery, plant or premises in use for the purpose of carrying out such repair or
maintenance work by such owner, agent, master or other officer-in-charge or person.
ION Exchange India Ltd. V.Deputy Chief Inspector of factories, Salem (1996).It was held that
owner can nominate any person tobe in ultimate control over the affairs of a factory. If no
one else has been nominated to be in ultimate control over the affairs of the company,
Director of a company or any partner of partnership is deemed to be the occupier.
2. What is a factory?
According to section 2(m) "factory" means any premises including the precincts thereof-
(i) whereon ten 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
(ii) 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 without the aid of power, or is ordinarily so carried on, - but does not include a mine
subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a mobile unit belonging to
the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place;
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 to make it a factory if no manufacturing process is being carried on in such
premises or part thereof;
3. Who is a Worker?
According to section 2(l) ”worker" means a person employed directly or by or through any
agency (including a contractor) with or without the knowledge of the principal employer
whether for remuneration or not in any manufacturing process, or in cleaning any part of
the machinery or premises used for a manufacturing process, or in any other kind of work
incidental to, or connected with the manufacturing process, or the subject of the
manufacturing process but does not include any member of the armed forces of the Union;
4. What is a Manufacturing Process?
According to section 2(k) "manufacturing process" means any process for-
(i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing or otherwise treating or adopting any article or substance with a
view to its use, sale, transport, delivery or disposal; or
(ii) Pumping oil, water, sewage, or any other substance; or
(iii) Generating, transforming or transmitting power; or
(iv) composing types for printing, printing by letter press, lithography, photogravure or
other similar process or book-binding; or
(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels;
or
(vi) Preserving or storing any article in cold storage;
5. What is hazardous process?
According to section 2(cb) "hazardous process" means any process or activity in relation to
an industry specified in the 'First Schedule where, unless special care is taken, raw materials
used therein or the intermediate or finished products, bye-products, wastes or effluents
thereof 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:- Provided that the State
Government may, by notification in the official Gazette, amend the First Schedule by way of
addition, omission or variation of any industry specified in the said Schedule;
Duties of Occupier
The Duties of Occupier have been clearly mentioned in the following sections of Factories
Act, 1948:
1. Notice by Occupier (Section 7)
The occupier shall, send to the Chief Inspector a written notice in respect of all
establishments which come within the scope of the Act for the first time, before a factory
engaged in a manufacturing process which is ordinarily carried on for less than one hundred
and eighty working days in the year resumes working, whenever a new manager is
appointed. During any period for which no person has been designated as manager of a
factory or during which the person designated does not manage the factory, any person
found acting as manager, or if no such person is found, the occupier himself, shall be
deemed to be the manager of the factory for the purposes of this Act.
2. General Duties of the Occupier(Section7A)
# To ensure the health, safety and welfare of all workers while they are at work in the
factory.
# To provide and maintain the plant and systems of work in the factory that are safe and
without risk to health of the workers.
# To provide arrangements in the factory for ensuring safety and absence of risk to health in
connection with the use, handling, storage and transport of articles and substances
# To provide such information, instruction, training and supervision as are necessary to
ensure the health and safety of all workers at work.
# To maintain all places of work in the factory in a condition that is safe and without risks to
health and to provide and maintain such means of access to, and egress from, such places as
are safe and without such risks.
# To provide, maintain or monitor such working environment in the factory for the workers
that is safe, without risk to health and adequate as regards facilities and arrangements for
their welfare at work.
# To prepare a written statement of his general policy with respect to the health and safety
of the workers at work and the organization and arrangements in force for carrying out that
policy.
3. Appointment of Safety officers. (Section 40-B)
It shall be the duty of the of the Occupier to Appoint a Safety officer in a factory:-
(i) Wherein one thousand or more workers are ordinarily employed, or
(ii) Wherein, in the opinion of the State Government, any manufacturing process or
operation is carried on, which process or operation involves any risk of bodily injury,
poisoning or disease, or any other hazard to health, to the persons employed in the factory,
if so required by the State Government by notification in the official Gazette.
4. Compulsory Disclosure of Information by the Occupier. (Section 41-B)
Compulsory disclosure of information by the occupier -
# The occupier of every factory involving a hazardous process shall disclose in the manner
prescribed to the Chief Inspector and the local authority.
# 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 intimates such policy to the Chief Inspector and the local authority.
# Every occupier shall, with the approval of the Chief Inspector, 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.
# The occupier of a factory involving a hazardous process shall, with the previous approval
of the Chief Inspector, 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
among the workers and the general public living in the vicinity.
5. Specific Responsibility of the occupier in relation to Hazardous Process. (Section 41-C)
Every occupier of a factory involving any hazardous process shall-
# maintain accurate and up-to-date health records or, as the case may be, medical records,
of the workers in the factory
# appoint persons who possess qualifications and experience in handling hazardous
substances
# Provide for medical examination of every worker.
6. Worker’s Participation in safety management. (Section 41-G)
The occupier shall, in every factory where a hazardous process takes place, or where
hazardous substances are used or handled, set up a Safety Committee consisting of equal
number of representatives of workers and management to promote co-operation between
the workers and the management in maintaining proper safety and health at work and to
review periodically the measures taken in that behalf.
7. Right of Workers to be warned about imminent dangers. (Section 41-H)
It shall be the duty of such occupier, agent, manager or the person in charge of the factory
or process to take immediate remedial action if he is satisfied about the existence of such
imminent danger and send a report forthwith of the action taken to the nearest Inspector.
8. Facilities for sitting and Canteens. (Section 42 to 49)
It is the duty of occupier to provide welfare facilities like Lunch rooms, Canteen, Crèche,
Washing facilities, first-aid appliances etc. to all workers and to appoint a welfare officer.
9. Annual Leave with Wage.(Section 79)
For the purpose of ensuring the continuity of work, the occupier or manager of the factory,
in agreement with the Works Committee of the factory constituted under section 3 of the
Industrial Disputes Act, 1947 (14 of 1947), or a similar Committee constituted under any
other Act or if there is no such Works Committee or a similar Committee in the factory, in
agreement with the representatives of the workers therein chosen in the prescribed
manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave
allowable under this section may be regulated.
10. Safety and Occupational Health Survey. (Section 91-A)
The occupier or manager of the factory or any other person who for the time being purports
to be in charge of the factory, undertake safety and occupational health surveys, and such
occupier or manager or other person shall afford all facilities for such every, including
facilities for the examination and testing of plant and machinery and collection of samples
and other data relevant to the survey.
Duties of Factory Manager
The Duties of Factory Manager are mentioned in the following Sections of Factory Act, 1948:
1. Right of Workers to be warned about imminent danger. (Section 41-H)
It shall be the duty of such occupier, agent, manager or the person in charge of the factory
or process to take immediate remedial action if he is satisfied about the existence of such
imminent danger in the factory where the worker is engaged in any hazardous process and
send a report forthwith of the action taken to the nearest Inspector.
2. Notice of periods of work for adults. (Section 61)
The manager of the factory shall display correctly and maintained in every factory in
accordance with the provisions of sub-section (2) of section 108, a notice of periods of work
for adults, showing clearly for every day the periods during which adult workers may be
required to work, fix the periods during which each relay of the group may be required to
work, classify them into groups according to the nature of their work indicating the number
of workers in each group, shall draw up a scheme of shifts where under the periods during
which any relay of the group may be required to work.
3. Register of Adult Workers. (Section 62)
The manager of every factory shall maintain a register of adult workers, to be available to
the Inspector at all times during working hours, or when any work is being carried on in the
factory.
4. Annual Leave with Wage. (Section 79)
For the purpose of ensuring the continuity of work, the occupier or manager of the factory,
in agreement with the Works Committee of the factory constituted under section 3 of the
Industrial Disputes Act, 1947 (14 of 1947), or a similar Committee constituted under any
other Act or if there is no such Works Committee or a similar Committee in the factory, in
agreement with the representatives of the workers therein chosen in the prescribed
manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave
allowable under this section may be regulated.
5. Notice of Certain Dangerous Occurrences. (Section 88A)
Notice of certain dangerous occurrences. —Where in a factory any dangerous occurrence of
such nature as may be prescribed occurs, whether causing any bodily injury or disability or
not, the manager of the factory shall send notice thereof to such authorities, and in such
form and within such time, as may be prescribed.
6. Notice of Certain Disease. (Section 89)
Where any worker in a factory contracts any disease specified in 1[the Third Schedule], the
manager of the factory shall send notice thereof to such authorities, and in such form and
within such time, as may be prescribed.
7. Safety and Occupational Health Survey. (Section 91-A)
The occupier or manager of the factory or any other person who for the time being purports
to be in charge of the factory, undertake safety and occupational health surveys, and such
occupier or manager or other person shall afford all facilities for such every, including
facilities for the examination and testing of plant and machinery and collection of samples
and other data relevant to the survey.
8. Notice of Certain Accidents. (Section 88)
Where in any factory 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 in this behalf, the manager of the factory shall send notice thereof to such
authorities, and in such form and within such time, as may be prescribed to the Chief
Inspector.
General Procedure As To Filing of Cases In Case of Factory Accidents
Whenever an accident takes place in a factory the Occupier or Factory Manager shall inform
the Chief Inspector within a period of forty eight hours or so (Section 88) and shall send
Form No. 22 containing all the information regarding the said accident to Labour
Department, Industrial Health And Safety, which shall inquire into the matter by factory
inspector who shall inspect the accident spot, take the witness of the victims, then he shall
issue a show cause notice to the Occupier and Factory Manager to reason out the causes of
the mis happening. If the Factory Inspector is not satisfied with the reply given by the
factory management he shall institute a case against the Occupier and Factory Manager
before Judicial Magistrate First Class, Labour Court (Section 105).Then in case if the party to
the disputes are not satisfied with the judgement they shall refer the case to the High Court
or and to the Supreme Court respectively.
Penalties under factory act, 1948
Section 92. General penalty for offences. -
Save as is otherwise expressly provided in this Act and subject to the provisions of section
93, if in, or in respect of, any factory there is any contravention of the provisions of this Act
or of any rules made there under or of any order in writing given there under, the occupier
or manager of the factory shall each be guilty of an offence and punishable with
imprisonment for a term which may extend to two years or with fine which may extend to
one lakh rupees or with both, and if the contravention is continued after conviction, with as
further fine which may extend to one thousand rupees for each day on which the
contravention is so continued.
Provided that where contravention of any of the provisions of Chapter IV or any rule made
there under or under section 87 has resulted in an accident causing death or serious bodily
injury, the fine shall not be less than twenty-five thousand rupees in the case of an accident
causing death, and five thousand rupees in the case of an accident causing serious bodily
injury.
Section 94. Enhanced penalty after previous conviction. -
(1) If any person who has been convicted of any offence punishable under section 92 is
again found guilty of an offence involving a contravention of the same provision, he shall be
punishable on a subsequent conviction with imprisonment for a term which may extend to
three years or with fine, which shall not be less than ten thousand rupees but which may
extend to two lakh rupees or with both;
Provided that the Court may, for any adequate and special reasons to be mentioned in the
judgment, impose a fine of less than ten thousand rupees:
Provided further that where contravention of any of the provisions of Chapter IV or any rule
made there under or under section 87 has resulted in an accident causing death or serious
bodily injury, the fine shall not be less than thirty-five thousand rupees in the case of an
accident causing death and ten thousand rupees in the case of an accident causing serious
bodily injury.
(2) For the purpose of sub-section (1), no cognizance shall be taken of any conviction made
more than two years before the commission of the offence for which the person is
subsequently being convicted.
Section 95. Penalty for obstructing inspector. -
Whoever wilfully obstructs an Inspector in the exercise of any power conferred on him by or
under this Act, or fails to produce on demand by an Inspector any register or other
documents kept in his custody in pursuance of this Act or of any rules made there under, or
conceals or prevents any workers, in a factory from appearing before, or being examined by,
an inspector, shall be punishable with imprisonment for a term which may extend to six
months or with fine which may extend to ten thousand rupees or with both.
Section 96A. Penalty for contravention of the provisions of sections 41B, 41C and 41H.-
(1) Whoever fails to comply with or contravenes any of the provisions of sections 41B, 41C
or 41H or the rules made there under, shall, in respect of such failure or contravention, be
punishable with imprisonment for a term which may extend to seven years and with fine
which may extend to two lakh rupees, and in case the failure or contravention continues,
with additional fine which may extend to five thousand rupees for every day during which
such failure or contravention continues, after the conviction for the first such failure or
contravention.
(2) If the failure or contravention referred to in sub-section (1) continues beyond a period of
one year after the date of conviction, the offender shall be punishable with imprisonment
for a term which may extend to ten years.
Section 97. offences by workers. -
(1) Subject to the provisions of section 111, if any worker employed in a factory contravenes
any provision of this Act or any rules or orders made thereunder, imposing any duty or
liability on workers, he shall be punishable with fine which may extend to five hundred
rupees.
(2) Where a worker is convicted of an offence punishable under sub-section (1) the occupier
or manager of the factory 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.
Exemptions of occupier or manager from liability in certain cases
Section 101. Exemption of occupier or manager from liability in certain cases.-
Where the occupier or manager of a factory is charged with an offence punishable under
this Act he shall be entitled, upon complaint duly made by him and on giving to the
prosecutor not less than three clear days' notice in writing of his intention so to do, to have
any other person whom he charges as the actual offender brought before the Court at the
time appointed for hearing the charge; and if, after the commission of the offence has been
proved, the occupier or manager of the factory, as the case may be, proves to the
satisfaction of the Court -
(a) that he has used due diligence to enforce the execution of this Act, and
(b) that the said other person committed the offence in question without his knowledge,
consent or connivance,
that other person shall be convicted of the offence and shall be liable to the like punishment
as if he was the occupier or manager of the factory, and the occupier or manager, as the
case may be, shall be, discharged from any liability under this Act in respect of such offence:
Provided that in seeking to prove as aforesaid, the occupier or manager of the factory, as
the case may be, may be examined on oath, and his evidence and that of any witness whom
he calls in his support, shall be subject to cross-examination on behalf of the person he
charges as the actual offender and by the prosecutor:
Provided further that, if the person charged as the actual offender by the occupier or
manager, cannot be brought before the court at the time appointed for hearing the charge,
the court shall adjourn the hearing from time to time for a period not exceeding three
months and if by the end of the said period the person charged as the actual offender
cannot still be brought before the court, the court shall proceed to hear the charge against
the occupier or manager and shall, if the offence be proved, convict the occupier or
manager.
Changes brought about by the Factory Act,1948
The following changes were made by the factories Act, 1948: -
# The definition of the term “Factory” was widened to cover all industrial establishments
employing ten or more workers where power was used and 20 or more workers in all other
cases.
# The distinction between seasonal and non-seasonal factories was abolished.
# Under the Act of 1934 the State Governments had power to extend the application of the
Act to establishments where more than 10 Workers were employed. Under the Act of 1948,
the State Government may extend the provisions of this Act to any establishment
irrespective of the number of the workers employed therein and irrespective of the number
of the workers employed on therein and irrespective of the fact that manufacturing work is
carried by power or otherwise. The only exception is an establishment where the work is
done solely by the members of a family.
# Chapter III of the Act of 1934 was split into three parts, dealing with health, safety and
welfare of workers. The Act specifies very clearly the minimum requirements under three
heads stated above.
# The basic provisions of the old Act relating to Health,
safety, and welfare are extended to all work places irrespective of the number of workers
employed, except premises where processes are carried on by the occupier with the sole aid
of his family.
# The minimum age for the admission of children to employment has been raised from 12 to
14 years and the minimum permissible daily hours of work of children were reduced from
five to four and a half hour.
# Provisions are made for the licensing and registration of factories and the prior scrutiny by
the Factories Inspectorate of the Plans and specifications of factory buildings.
# Employment of Children and women between 7 p.m. and 6 a.m. is prohibited. For
overtime work the workers are entitled to twice their normal rate of wages.
# The State Government are empowered to make rules requiring the association of the
workers in the management of arrangements for the welfare of the workers.
# State Government is obliged to see that all the factories are registered and take a licensing
for working, which should be periodically renewed. Prior approval of the State Government
has been made necessary for every New The installation of a Factory or for the extension of
an existing factory. Besides mines, the new Act also excludes railway running sheds from the
definition of Factories.
Conclusion
The present Factories Act in operation for the last 37 years has provided ample benefits to
the factory workers. It has considerably improved their working and employment
conditions. The Government is actively considering the introduction of some vital
amendments to the Act to keep it in tune with time and make it more effective While
dealing with the duties of the Occupier and Factory Manager under Factories Act 1948,
altogether we can conclude that the Occupier and Factory Manager has a vital role to play in
assuring the health, safety and welfare of the workers as they are the backbone of the
industrial sector. It is, however necessary that the workers and their representatives make
themselves aware of the various provisions of the Act and safeguard their interests on their
own and force the defaulting employer to be conscious of his legal obligations.
The Factories (Latest Amendment) Bill
The Factories (Amendment) Bill, 2016 was introduced in Lok Sabha on August 10, 2016 by
the Minister for Labour and Employment, Mr. Bandaru Dattatreya.
The Bill amends the Factories Act, 1948. The Act regulates the safety, health and welfare of
factory workers. The Bill amends provisions related to overtime hours of work.
Power to make rules on various matters: The Act permits the state government to
prescribe rules on a range of matters, including double employment, details of adult
workers to be included in the factory’s register, conditions related to exemptions to certain
workers, etc. The Bill gives such rule making powers to the central government as well.
Powers to make rules for exemptions to workers: Under the Act, the state government
may make rules to (i) define persons who hold management or confidential positions; and
(ii) exempt certain types of adult workers (e.g. those engaged for urgent repairs) from fixed
working hours, periods of rest, etc. The Bill gives such rule making powers to both, the
central and state governments.
Under the Act, such rules will not apply for more than five years. The Bill modifies this
provision to state that the five-year limitation will not apply to rules made after the
enactment of this Bill.
Overtime hours of work in a quarter: The Act permits the state government to make rules
related to the regulation of overtime hours of work. However, the total number of hours of
overtime must not exceed 50 hours for a quarter. The Bill raises this limit to 100 hours.
Rules in this regard may be prescribed by the central government as well.
Overtime hours if factory has higher workload: The Act enables the state government to
permit adult workers in a factory to work overtime hours if the factory has an exceptional
work load. Further the total number of hours of overtime work in a quarter must not exceed
75. The Bill permits the central or state government to raise this limit to 115.
Overtime in public interest: The Bill introduces a provision which permits the central or
state government to extend the 115-hour limit to 125 hours. It may do so because of (i)
excessive work load in the factory and (ii) public interest.
MCQS

1. The objective of the which of the following act is to ensure adequate safety measures
and to promote the health and welfare of the workers employed in factories
(a) Factories Act 1948
(b) Employees' State Insurance Scheme 1948
(c) Workmen's Compensation Act 1923
(d) Industrial Dispute Act 1947
ANS: A

2. The Factories Act 1948 extends to


(a) Whole of India including Jammu & Kashmir
(b) Whole of India excluding Jammu & Kashmir
(c) Whole of India including North Eastern Tribal Area
(d) Whole of India excluding North Eastern Tribal Area
ANS: A

3. Which Section of the Factories Act 1948 defines 'Adult'


(a) Section 2(b)
(b) Section 2(d)
(c) Section 2(a)
(d) Section 2(f)
ANS: C

4. Section 2(c) of Factories Act 1948 define child as a person who has not completed his
......... year of age
(a) 14 th
(b) 18 th
(c) 12 th
(d) 15 th
ANS: D

5. As per Factories Act 1948, 'Adolescent' means a person who has completed his 15 the
year of age but has not completed his 21st year. This statement is
(a) True
(b) False
(c) True in respect of young person
(d) True in respect of adult
ANS: B
6. As per section 2(d) of the Factories Act 1948, 'young person' means a person who is
(a) a child
(b) an adolescent
(c) either a child or an adolescent
(d) a adult
ANS: C

7. Which Section of the Factories Act 1948 defines 'factory'


(a) Section 2(h)
(b) Section 2(k)
(c) Section 2(m)
(d) Section 2(n)
ANS: C

8. Which of the following is not a essential element of a factory


(a) There must be a premises
(b) There must be manufacturing process being carried on at the premises
(c) There must be ten or more workers where the manufacturing process is being carried
on with the aid of power
(d) there electronic data processing units are installed
ANS: D

9.Which of the following are not covered by the definition of factory


(i) Railway running sheds
(ii) mines
(iii) mobile units of armed forces
(iv) hotels, eating places or restaurants
Chose the correct options:
(a) (i) & (ii)
(b) (i), (ii) & (iii)
(c) (ii), (iii) & (iv)
(d) (i), (ii), (iii) & (iv)
ANS: D

10. As per Factories Act 1948, which of the following is not included in the definition of
'manufacturing process'
(a) Preserving or storing any article in cold storage
(b) Any preliminary packing of raw material for delivery it to the factory
(c) Generating, transforming, transmitting power
(d) Pumping oil, water or sewage or any other substance
ANS: B
11. A general manager of a factory can be appointed as an Inspector of factory under the
Factories Act, 1948.
(a) True
(b) False
(c) Depend on the Organizational Structure of the company
(d) None of the above
ANS: B

12. The Factories employing more than 1000 workers are required to submit their plan for
approval to
(a) Deputy Chief Inspector of Factories
(b) Joint Chief Inspector of Factories
(c) Chief Inspector of Factories
(d) Additional Chief Inspector of Factories.
ANS: C

13. A weekly holiday was introduced in the Factories for the first time in the year
(a) 1948
(b) 1931
(c) 1926
(d) 1923
ANS: D

14. Under the Section 41A of the Factories Act, the Site Appraisal Committee shall be
constituted once in ............ year under the chairmanship of Chief Inspector of Factories.
(a) Once in 5 Year
(b) Once in 2 Year
(c) Once in 3 Year
(d) Once in a Year.
ANS: A

15. To close down a factory, the occupier has to give ............ days notice to the
authorities.
(a) 30 Days
(b) 60 Days
(c) 90 Days
(d) 14 Days
ANS: B
16.The periods of work of adult workers in a factory each day shall be so fixed that no
period shall exceed five hours and that no worker shall work for more than five hours
before he has had an interval for rest of at least ------- hours.
(a) one and half hours
(b) one hour
(c) half an hour
(d) None of the above
ANS: C

17.The period of work of an adult worker in a factory shall be so arranged that inclusive of
his intervals for rest under section 55, they shall not spread over more than -------- in any
day:
(a) nine and a half hours
(b) eight and a half hours
(c) ten hours
(d) ten and a half hours
ANS: D

18. No woman shall be required or allowed to work in any factory except between the
hours
(a) 6 A.M. and 7 P.M.
(b) 5 A.M. and 6 P.M.
(c) 7 A.M. and 10 P.M.
(d) 6 A.M. and 10 P.M.
ANS: A

19. No child shall be employed or permitted to work in any factory


(a) for more than eight and a half hours in any day
(b) for more than four and a half hours in any day
(c) for more than four hours in any day
(d) for more than six hours in any day
ANS: B

20. As per section 111 of the Act, if any worker employed in a factory contravenes any
provision of this Act , he/she shall be punishable with fine which may extend to ---------
rupees.
(a) 5000
(b) 1000
(c) 500
(d) 100
ANS: C
21. The Bhopal Gas Tragedy led to an amendment under which of the following
legislations?
(A) Factories Act
(B) Mines Act
(C) Plantation Labour Act
(D) None of the above
ANS: A

22. The Factories Act, 1948 requires the appointment of the ‘Safety Officer’ in factories
employing at least
(A) 250 workers
(B) 500 workers
(C) 1000 workers
(D) None of the above
ANS: C

23. Which section of the Factories Act deals with appointment of Welfare Officers?
(A) Section 45
(B) Section 49
(C) Section 51
(D) Section 55
ANS: B

24.Appointment of Welfare Officer under Factories Act, 1948 is compulsory where ...........
employees are employed.
(A) 50
(B) 500
(C) 1000
(D) 100
ANS: B

25. Crèche is mandatory under the Factories Act where ......... workers are employed
(A) 30
(B) 100
(C) 30 women
(D) 250
ANS: C
26. Safety Officers are to be appointed if Organization is engaging ...........or more
employees.
(A) 1000
(B) 2000
(C) 500
(D) 750
ANS: A

27. Canteen is to be provided if engaging Employees more than ............. persons.


(A) 250
(B) 230
(C) 300
(D) 275
ANS: A

28. Leave with wages is allowed for employees if they work for ............ days in a month.
(A) 15
(B) 25
(C) 20
(D) 28
ANS: C

29. Welfare Officers are to be appointed if Organization is engaging ........... or more


employees.
(A) 500
(B) 250
(C) 600
(D) 750
ANS: A

30. The Ambulance Room is to be provided If engaging employees more than .............
(A) 400
(B) 350
(C) 500
(D) 450
ANS: C
31. The annual return under the Factories Act shall be submitted to Inspector of Factories
on or before
(a) 31st January
(b) 31st December
(c) 30th April
(d) 31st March
ANS: A

32. The number of elected workers in the canteen managing committee shall not be more
than --------- or less than -------
(a) more than 5 or less than 2
(b) more than 20 or less than 10
(c) more than 15 or less than 10
(d) more than 10 or less than 5
ANS: A

33. As per Factories Act, "child" means a person who has not completed his ------- year of
age
(a) 18 th
(b) 21 st
(c) 15 th
(d) 14 th
ANS: C

34. As per Factories Act, "hazardous process" means any process or activity in relation to
an industry specified in the 'First Schedule' where, unless special care is taken, raw
materials used therein or the intermediate or finished products, bye-products, wastes or
effluents thereof would-
(a) Cause material impairment to the health of the persons engaged in or connected
therewith
(b) Result in the pollution of the general environment
(c) Only (a)
(d) Both (a) and (b)
ANS: D

35. "factory" means any premises including the precincts whereon --------- 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.
(a) 10
(b) 20
(c) 15
(d) 25
ANS: A
36.In any case of a public emergency the State Government may, by notification in the
Official Gazette, exempt any factory or class or description of factories from all or any of
the provisions of this Act except section ----------- for such period and subject to such
conditions as it may think fit; provided that no such notification shall be made for a period
exceeding three months at a time.
(a) Section 20
(b) Section 67
(c) Section 60
(d) Section 53
ANS: B

37. As per Factories (Amendment) Act, 1987, if a factory engaged in a hazardous process,
the occupier of a factory shall inform the Chief Inspector about the nature and details of
the process in such form and in such manner as may be prescribed within a period of ------
-- days of such commencement
(a) 60
(b) 25
(c) 30
(d) 50
ANS: C

38. The maximum permissible threshold limits of exposure of chemical and toxic
substances in manufacturing processes (whether hazardous or otherwise) in any factory
shall be of the value indicated in the ---------- Schedule.
(a) First Schedule
(b) Third Schedule
(c) Fourth Schedule
(d) Second Schedule
ANS: D

39. No adult worker shall be required or allowed to work in a factory for more than -------
hours in any week.
(a) 48
(b) 52
(c) 60
(d) 45
ANS: A
40.No substitution shall be made which will result in any worker working for more than ---
----days consecutively without a holiday for a whole day.
(a) seven days
(b) ten days
(c) twelve days
(d) fourteen days
ANS: B
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Assistant commissioner
LABOURLAW
International Labour Organisation
(LATESTUPDATES+MCQ'S)
International Labour Organization (ILO)

History
The ILO was established as an agency for the League of Nations following World War I. It
was established by the Treaty of Versailles in 1919. Its founders had made great strides in
social thought and action before the establishment of the organization itself.It became the
first specialised agency of the United Nations (UN) in the year 1946. The ILO has played a
significant role in promoting labour and human rights. It had held a significant position
during the Great Depression (1930s) for ensuring labour rights. It played a key role in the
decolonization process and in the victory over apartheid in South Africa. The organization
got the Nobel Peace Prize in 1969, for its efforts to improve peace amongst the classes, and
for promoting justice and fair work for the workers.(HQ-Geneva, Switzerland)
International Labour Organization (ILO) Objective
The ILO is the only tripartite U.N. agency. The ILO is a meeting point for governments,
workers and employers of ILO’s member States to set labour standards, improve upon
policies and create programs that promote decent work for people. The four strategic
objectives at the heart of the Decent Work agenda are:

 To develop and effectuate standards, fundamental principles, and fundamental


rights at work.
 To ensure that men and women have equal access to decent work while enhancing
opportunities for the same.
 To magnify the coverage and effectiveness of social protection for everyone.
 To strengthen Tripartism and social dialogue.
International Labour Organization (ILO) – Structure
The basis of the ILO is the tripartite principle. The ILO comprises the International Labour
Conference, the Governing Body, and the International Labour Office.
1. International Labour Conference:
The progressive policies of the ILO are set by the International Labour Conference.
The Conference is an annual event, which happens in Geneva, Switzerland. The conference
brings together all the representatives of the ILO.
Function: It is a panel for the review of the important issues regarding labour.
2. Governing Body:
The Governing Body is the executive body of the International Labour Organization.
The governing body meets in Geneva. It meets three times annually.
The Office is the secretariat of the Organization.
It is composed of 56 titular members, and 66 deputy members.
Functions: Makes decisions regarding the agenda and the policies of the International
Labour Conference.
It adopts the draft Programme and Budget of the Organization for submission to the
Conference.
Election of the Director-General.
3. International Labour Office:
It is the permanent secretariat of the International Labour Organization.
Functions: 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 187 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.T
International Labour Organization (ILO) Functions
The ILO plays an important role in the formulation of policies which are focussed on solving
labour issues. The ILO also has other functions, such as:

 It adopts international labour standards. They are adopted in the form of


conventions. It also controls the implementation of its conventions.
 It aids the member states in resolving their social and labour problems.
 It advocates and works for the protection of Human rights.
 It is responsible for the research and publication of information regarding social and
labour issues.
 The Trade Unions play a pivotal role in developing policies at the ILO, thus the
Bureau for Workers’ Activities at the secretariat is dedicated to strengthening
independent and democratic trade unions so they can better defend workers’ rights
and interests.
The ILO also assumes a supervisory role: it monitors the implementation of ILO conventions
ratified by member states.
The implementation is done through the Committee of Experts, the International Labour
Conference’s Tripartite Committee and the member-states.
Member states are obligated to send reports on the development of the implementation of
the conventions they have approved.
Registration of complaints: The ILO registers complaints against entities that are violating
international rules.
The ILO, however, does not impose any sanctions on the governments.
Complaints can also be filed against member states for not complying with ILO conventions
that have been ratified.
International Labour Standards: The ILO is also responsible for setting International Labour
Standards. The international labour conventions which are set by the ILO are ratified by the
member states. These are mostly non-binding in nature.
But once a member state accepts conventions, it becomes legally binding. The conventions
are often used to bring national laws in alignment with international standards.
ILO Global Commission on the Future of Work: The formation of an ILO Global Commission
on the Future of Work marks the second stage in the ILO Future of Work Initiative.
The Commission outlines a vision for a human-centred agenda that is based on investing in
people’s capabilities, institutions of work and decent and sustainable work.
It also describes the challenges caused by new technology, climate change and demography
and appeals for a collective global response to the disturbances being caused in the world of
work.
International Labour Organization – Mission
The ILO’s mission is to promote decent work for all workers. This is accomplished by
promoting social dialogue, protection, and employment generation.
The ILO provides technical support along with the support of development partners to
multiple countries in order to achieve this mission.
International Labour Organization – Declaration on Fundamental Principles and Rights at
Work
The Declaration was adopted in 1998, and it mandates the member states to promote the
eight fundamental principles and rights. The Fundamental Principles and Rights are
categorized into four classes. They are:

 Freedom of Association and the Right to Collective Bargaining (Conventions 87 and


98)
 Elimination of forced or compulsory labour (Conventions No. 29 and No. 105)
 Abolition of child labour (Conventions No. 138 and No. 182)
 Elimination of discrimination in respect of employment and occupation (Conventions
No. 100 and No. 111).
As part of the Follow-up to the Declaration, the ILO Director-General also submits a Global
Report on one of the four categories of fundamental principles and rights at work to the
tripartite International Labour Conference.
International Labour Organization – Core Conventions
The eight fundamental conventions form an indispensable part of the United Nations
Human Rights Framework, and their sanction is an important sign of member States’
commitment to human rights. Overall, 135 member States have ratified all eight
fundamental conventions.

 The eight-core conventions of the ILO are:


 Forced Labour Convention (No. 29)
 Abolition of Forced Labour Convention (No.105)
 Equal Remuneration Convention (No.100)
 Discrimination (Employment Occupation) Convention (No.111)
 Minimum Age Convention (No.138)
 Worst forms of Child Labour Convention (No.182)
 Freedom of Association and Protection of Right to Organised Convention (No.87)
 Right to Organise and Collective Bargaining Convention (No.98)
The conventions are highly relevant due to the economic challenges faced by workers all
around the world.
International Labour Organization and India
India is a founding member of the ILO. It became a permanent member of the ILO
Governing Body in 1922. The first ILO Office in India was inaugurated in 1928.
India has ratified six fundamental conventions.
India has not ratified Freedom of Association and Protection of the Right to Organise
Convention, 1948 (No. 87) and Right to Organise and Collective Bargaining Convention, 1949
(No. 98).
As the two conventions involve the granting of certain rights that are prohibited under the
statutory rules for government employees.
Labour Movement in India
The growth of the trade union movement in India was an organic process. It started towards
the tail end of the nineteenth century and has had a parallel development to India’s
industrial development. The difficulties of the workers’ lives came into light during the
1850s. The labour movement in India can be categorized into two phases: the first phase
lasting from the 1850s -1918, and the second from 1918- till Independence.

 The origin of the labour movements in India can be traced back to the 1860s,
however, the first agitation occurred only in 1875.
 The actions of the working class in the earliest stage were sporadic and disorganized
in nature and hence were mostly futile.
 It was only from the second decade of the twentieth century in Bombay, that serious
attempts were made for the formation of associations that could lead an organized
form of protests.
 The second phase witnessed the sporadic protests obtain an organized form. During
this phase, Trade Unions were formed on modern lines.
 The first labour tumult occurred in Bombay, 1875 under the leadership of S.S
Bengalee.
 It concentrated on the plight of workers, especially women and children.
 This agitation led to the appointment of the first Factory Commission, 1875.
 The first Factories Act was passed in 1881 consequently.
 In 1890, M.N Lokhande established Bombay Mill Hands Association. This was the first
organized labour union in India.
 The 1920s was significant in this regard. Congress and the Communists made serious
attempts to mobilize and establish a connection with the working class.
 The first attempt to form an all-India organization was also made in the 1920s.
Features of the labour movements in this era:

 Leadership was exemplified by social reformers and not by the workers themselves.
 The movements in this era mainly concentrated on the welfare of workers rather
than asserting their rights.
 They were organized, but there was no pan India presence.
 A strong intellectual foundation or agenda was missing.
 Their demands revolved around issues like that of women and children workers.

(First National Labour Commission-1969)

 स्थाऩना् 24 ददसॊफय, 1966


Established: December 24, 1966
 अध्मऺ् न्मामभूर्ति ऩी.फी. गजेन्रगडकय
Chairman: Justice P.B. gajendragadkar
 उद्दे श्म् सयकाय द्वाया आर्थिक विकास के र्रमे औद्योगीकयण प्रदिमा शुरू दकमे जाने के फाद दे श
भें औद्योर्गक सॊफॊध के ऩरयदृश्म का अध्ममन कयने के उद्दे श्म से इसका गठन दकमा गमा।
Objective: After the industrialization process was started by the government for
economic development, it was formed with the aim of studying the scenario of
industrial relations in the country.
 भहत्त्िऩूणि भुद्दे् श्रभ कल्माण, भजदयू ी, िेतन नीर्त, फोनस, साभाजजक सुयऺा, अर्भको का
प्रर्शऺण औय र्शऺा, श्रर्भकों औय र्नमोक्ताओॊ का सॊगठन, औद्योर्गक सॊफॊध भशीनयी जैसे भुद्दों
को रयऩोर्ि भें दकमा गमा।
Important issues: Labor welfare, wages, wage policy, bonus, social security, training
and education of workers, organization of workers and employers, industrial
relations machinery, etc. were covered in the report.
भहत्त्िऩूणि र्सपारयशे/ Important recommendations

 केन्र तथा याज्म दोनों भें औद्योर्गक सॊघर्षों का न्मार्मक र्नणिम कयने भध्मस्थता कयने,
विर्बन्न श्रभ सॊघों को भान्मता दे ने आदद के उद्दे श्म से स्थामी औद्योर्गक सॊफॊध आमोग की
स्थाऩना की जानी चादहमे।
Permanent Industrial Relations Commission should be established for the purpose of
judicial decision making, mediation of industrial conflicts, recognition of various
trade unions, etc., both at the Center and in the State.
 विर्बन्न याज्मों भें स्थामी श्रभ न्मामारमों की स्थाऩना की जानी चादहमे।
Permanent Labor Courts should be established in different states.
 दे श के विर्बन्न ऺेत्रों के र्रमे अरग-अरग न्मूनतभ भजदयू ी र्नजित कयने की र्सपारयश की
तथा भजदयू ी र्नजित कयते सभम उद्योग की भजदयू ी दे म ऺभता को ध्मान भें यखने की फात की
गई।
Recommended to fix different minimum wages for different regions of the country
and while fixing wages it was talked about keeping in mind the wage payable
capacity of the industry.
 आमोग ने औद्योर्गक सॊघर्षों के सभाधान के र्रमे साभूदहक सौदे फाजी को एक श्रेष्ठ साधन भाना
तथा र्भर भार्रकों द्वाया श्रभ सॊघों को अर्निामि रूऩ से भान्मता दे ने का सुझाि ददमा।
The commission considered collective bargaining as the best means of resolving
industrial conflicts and suggested compulsory recognition of labor unions by mill
owners.
 श्रभ सॊघों को सॊगठनात्भक एिॊ वित्तीम दृवि से भजफूत फनाने के र्रमे अनेक सुझाि ददमे।
Several suggestions were given to make the labor unions strong from the
organizational and financial point of view.
 सभम-सभम ऩय जीिन-र्निािह की रागतें फदरने के साथ-साथ भजदयू ी दय ऩय बी ऩुनवििचाय
दकमे जाने की फात कही गई।
Along with changing the cost of living from time to time, there was talk of rethinking
the wage rate as well.
 भहॊ गाई बत्ते को फेर्सक भजदयू ी के साथ र्भरामा जाना चादहमे।
Dearness allowance should be clubbed with monthly wages.
 आमोग ने प्रेयक मोजनाओॊ को अऩनाने ऩय जोय ददमा क्मोंदक भजदयू ी भें र्नयन्तय िृवि,
उत्ऩादकता भें िृवि के विना प्राप्त कयना सॊबि नहीॊ है ।
The commission emphasized on adopting motivational schemes because it is not
possible to achieve continuous increase in wages without increase in productivity.
 बविष्म र्नर्ध के र्रमे मोगदान की दय 6.25 प्रर्तशत से फढा कय 8 प्रर्तशत तथा जहाॉ मह ऩहरे
से 8 प्रर्तशत है िहाॉ फढा कय 10 प्रर्तशत कयने की र्सपारयश की।
Recommended to increase the rate of contribution for provident fund from 6.25
percent to 8 percent and where it is already 8 percent to 10 percent.
 कृ वर्ष बूर्भ के सॊफॊध भें आमोग ने न्मूनतभ भजदयू ी अर्धर्नमभ, 1949 को रागू कयने का सुझाि
ददमा तथा इसे सफसे कभ भजदयू ी िारे ऺेत्रों से रागू कयने की फात कही।
With regard to agricultural land, the commission suggested the implementation of
the Minimum Wages Act, 1949 and asked to implement it from the lowest wage
areas.
 साभान्म श्रभ सॊदहता के दहत भें आमोग ने अऩना विचाय प्रकर् नहीॊ दकमा।
The Commission did not express its views in the interest of the Common Labor Code.

(Second National Labour Commission-2002)

स्थाऩना: 15 अक्तूफय, 1999

Established: October 15, 1999

अध्मऺ् यिीॊर िभाि

President: Ravindra Verma

रयऩोर्ि प्रस्तुत की गई: जून, 2002

Report Submitted: June, 2002

उद्दे श्म: उदायीकयण की प्रदिमा के साथ दे श भें आर्थिक औय औद्योर्गक ऺेत्रों भें ऩरयितिन राने के उद्दे श्म
से विद्यभान श्रभ कानूनों से भें सॊशोधन एिॊ ऩरयितिन के र्रमे दद्वतीम याष्ट्रीम श्रभ आमोग का गठन दकमा
गमा।

Objective: With the process of liberalization, the Second National Labor Commission was
constituted to amend and change the existing labor laws with the aim of bringing changes in
the economic and industrial sectors in the country.

भहत्िऩूणि भुद्दे् ितिभान श्रभ कानूनों भें ऩरयितिन की आिश्मकता, बायतीम श्रभ प्रणारी की
गत्मात्भकता, स्ितॊत्रता के फाद औद्योर्गक विकास की प्रगर्त, साभाजजक सुयऺा के उऩाम, भदहरा
श्रर्भक औय फारश्रभ भजदयू ी कौशर विकास, श्रभ प्रशासन जैसे भुद्दों को रयऩोर्ि भें किय दकमा गमा।

Important Issues: The need for changes in the existing labor laws, dynamics of the Indian
labor system, progress of industrial development after independence, social security
measures, women labor and child labor, skill development, labor administration were
covered in the report.

भहत्िऩूणि र्सपारयशे/ important recommendations

 केिर िे सॊघ जजसके 10 प्रर्तशत सदस्म मूर्नर् के श्रर्भकों भें से हैं , को श्रर्भकों का प्रर्तर्नर्धत्ि
कयने का अर्धकाय होना चादहमे।
Only those unions, whose members are 10 percent of the workers of the unit, should
have the right to represent the workers.
 एक श्रर्भक जो दकसी बी ट्रे ड मूर्नमन का सदस्म नहीॊ है , उसे मूर्नमन सब्सदिप्शन दय के
फयाफय यार्श का बुगतान कयना होगा, जजसे िैधार्नक कल्माण र्नर्ध (Statutory Welfare
Fund) भें जभा दकमा जा सकता है ।
A worker who is not a member of any trade union has to pay an amount equal to the
union subscription rate, which can be deposited in the Statutory Welfare Fund.
 व्माऩाय सॊघ औय पेडे येशन के केंरीम सॊगठन को व्माऩाय सॊघ की ऩरयबार्षा भें शार्भर दकमा
जाना चादहमे।
Trade union and federation's central organization should be included in the
definition of trade union.
 र्शल्ऩ (Craft) मा जार्त आधारयत सॊघों (Unions) को ऩॊजीकयण की अनुभर्त नहीॊ दी जानी
चादहमे।
Craft or caste based unions should not be allowed to register.
 300 मा अर्धक श्रर्भकों को योजगाय दे ने िारे प्रर्तष्ठानों के र्रमे चेक-ऑप प्रणारी को अर्निामि
दकमा जाना चादहमे।
Check-off system should be made mandatory for establishments employing 300 or
more workers.
 एक फाय भान्मता प्राप्त होने के फाद इसे 4 िर्षि के र्रमे िैध भाना जाना चादहमे।
Once recognized, it should be considered valid for 4 years.
 व्माऩाय सॊघ को भजफूत दकमा जाना चादहमे औय दे श भें साभूदहक सौदे फाजी को प्रोत्सादहत
दकमा जाना चादहमे।
Trade union should be strengthened and collective bargaining should be encouraged
in the country.
 एक भान्मता प्राप्त नेगोर्शएदर्ॊ ग एजेंर् के साथ दकमा गमा सभझौता श्रर्भकों के र्रमे फाध्मकायी
होना चादहमे।
The agreement entered into with an accredited negotiating agent should be binding
on the workers.
 घर्क र्नकाम के रूऩ भें श्रभ सॊफॊध आमोग के साथ एक एकीकृ त श्रभ न्मामऩार्रका प्रणारी
स्थावऩत की जानी चादहमे।
An integrated labor judiciary system should be set up with the Labor Relations
Commission as the constituent body.
MCQS

Question 1 : What is ILO?


Answer: The International Labour Organization (ILO) is a specialized UN agency, tripartite
in nature with governments, employers and workers as members. It was established in
1919 by the Treaty of Versailles.

Question 2 : Is India a member of ILO?


Answer: India is one of the founding members of International Labour Organization which
came into existence in 1919 and has been a permanent member of the ILO Governing
Body since 1922.

Question 3 : How many members are there in ILO?


Answer: At present the ILO has 187 Members.

Question 4 : What are the main functions of the ILO?


Answer: The principal function of the ILO is to take care of the interests of the workers by
means of setting up the international labour standards in the form of
Conventions and Recommendations.

Question 5 : How many Conventions and Recommendations ILO has adopted so


far?
Answer: The ILO has so far adopted 189 Conventions and 202 Recommendations. Out of
the 189 Conventions of the ILO, India has so far ratified 43 Conventions (as on 31st
December, 2013).

Question 6 : Which are the main organs of the ILO?


Answer: The ILO is composed of three organs: 1. A general assembly (International Labour
Conference): Meets once every year in the month of June. 2. An executive council
(Governing Body): Meets three times every year in the months of March, June and
November. 3. A permanent secretariat (International Labour Office).

Question 7 : What are the main features of International Labour Conference of the ILO?
Answer: The International Labour Conference of the ILO is one of the largest Conferences
at the international level and is characterized by a unique feature of
tripartism i.e., ‘governments’, ‘workers’ and ‘employers’ representatives participate
independently. It is the supreme body of the ILO.
Question 8 : What are the functions of the Governing Body of ILO?
Answer: It is the executive body of the ILO, with a tripartite composition. It elects the
Director General of the ILO, prepares the organization’s programmes and budget, sets the
agenda of the Conference, determines the organization’s standards and its technical
cooperation policy, supervises the implementation of related programmes and
implements the decisions of the Conference.

Question 9 : What are ILO Conventions, Recommendations and Protocol?


Answer: ILO Conventions are international labour instruments or treaties, which on
ratification create legally binding obligations upon the States.

Question 10 : What are ILO Recommendations and Protocol?


Answer: Recommendations are instruments providing guidance for policy formulation and
action by the governments, employers’ and workers’ organizations. They are not intended
to give rise to obligations, nor can they be ratified by member States.

Question 11 : What is ILO Protocol?


Answer: A Protocol is an instrument that partially modifies a Convention. It is open to
ratification by a State already bound by or simultaneously ratifying and becoming bound
by the Convention in question.

Question 12 : Which are the Core Conventions of the ILO?


Answer: The 8 Core Conventions of the ILO are categorized into the following 4 categories;
1. Child Labour: Minimum Age Convention (No.138), Worst Forms of Child Labour
Convention (No.182);
2. Freedom of Association & Collective Bargaining: Freedom of Association and Protection
of Right to Organize Convention (No.87), Right to Organize and Collective Bargaining
Convention
(No.98);
3. Forced Labour: Forced Labour Convention (No.29), Abolition of Forced Labour
Convention (No.105);
4. Discrimination: Equal Remuneration Convention (No.100), Discrimination (Employment
Occupation) Convention (No.111)
These Conventions are also called the Human Rights Conventions or Fundamental
Principles and Rights at Work.

Question 13 : How many of the ILO Core Conventions have been ratified by India so far?
Answer: Among the Core Conventions, India has ratified ILO Conventions on Forced
Labour Convention (No.29), Equal Remuneration Convention (No.100), Discrimination
(Employment Occupation) Convention (No.111) and Abolition of Forced Labour
Convention (No.105).
(Convention No. 29 ratified on 30.11.1954, Convention No.100 ratified on 25.9.1958,
Convention No.105 ratified on 18.5.2000 and Convention No.111 ratified on 3.6.1960).
Theofficersadda allexamtricks All exam tricks Allexamstricks

1- CODE OF WAGES ACT


2- INDUSTRIAL RELATIONS CODE
3- OCCUPATION SAFETY, HEALTH
& WORKING CONDITION CODE
4- SOCIAL SECURITY CODE
Existing Legislation New Legislation

o The Payment of Wages Act, 1936 (वेतन भुगतान अधिधनयम, 1936) Code of Wages Act
o The Minimum Wages Act, 1948 (न्यू नतम मजदू री अधिधनयम, 1948)
o The Payment of Bonus Act, 1965 (बोनस भुगतान अधिधनयम, 1965)
o The Equal Remuneration Act, 1976. (समान पाररश्रधमक अधिधनयम, 1976)
Existing Legislation New Legislation
 Industrial Employment
Standing Order Act,
1946 Industrial Relations
code 2020
 Industrial Disputes Act,
1947
 Trade Unions Act, 1926
Existing Legislation New Legislation
 Factories Act, 1948
 Mines Act, 1951
 Dock Workers ( safety, Health and Welfare Act, 1986
 The Building and other Workers (Regulation of
 Employment and Conditions of Service) Act, 1996
 The Plantations Labour Act, 1951; Occupational Safety,
 The Contract Labour (Regulation and Abolition) Act,1970
 The Inter-State Migrant workmen (Regulation of Health & Working
Employment and Conditions of Service) Act, 1979;
 The Working Journalist and other News Paper Employees Condition Code 2020
(Conditions of Service and Misc. Provision) Act, 1955;
 The Working Journalist (Fixation of rates of wages) Act,
1958;
 The Motor Transport Workers Act, 1961;
 Sales Promotion Employees (Condition of Service) Act, 1976;
 The Beedi and Cigar Workers (Conditions of Employment)
Act, 1966
 The Cine Workers and Cinema Theatre Workers Act, 1981
Existing Legislation New Legislation
 The EPF and M.P. Act, 1952
 The ESIC Act, 1948
 The Maternity Benefit Act,1961
 The Building and other Construction Workers
Cess Act
 The Payment of Gratuity Act, 1972
 The Employees Exchange (Compulsory Social Security Code
Notification of Vacancies) Act, 1959
 The Cine Workers Welfare Fund Act, 1981 2020
 The Unorganized Workers’ Social Security Act,
2008
 Employees Compensation Act, 1923
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Code of Wages Act 2019

 Informal workers accounts for 93% of the total working population and contribute to over
60% of India’s GDP. Therefore, the new wage code has the potential to influence the lives
of around 50 Crore workers in the country.
अनौपचाररक श्रममक कुल कामकाजी आबादी का 93% महस्सा हैं और भारत के सकल घरे लू
उत्पाद में 60% से अमधक का योगदान करते हैं। इसमलए, नए वेतन कोड में दे श के लगभग 50
करोड़ श्रममकोों के जीवन को प्रभामवत करने की क्षमता है।

 A well designed minimum wage system can reduce inequalities in incomes, bridge gender
gaps in wages and alleviate poverty.
एक अच्छी तरह से मडजाइन की गई न्यू नतम मजदू री प्रणाली आय में असमानताओों को कम कर
सकती है, मजदू री में लैंमगक अों तर को पाट सकती है और गरीबी को कम कर सकती है।

Why new Code on Wages? (मजदरू ी ऩर नया कोड क्यों?)

 In India, labour market preys on excess availability of workers, therefore workers are not
able to demand fair minimum wages and continue to live a precarious life.
भारत में, श्रम बाजार श्रममकोों की अमधक उपलब्धता का मशकार होता है , इसमलए श्रममक उमचत
न्यूनतम मजदू री की माोंग करने में सक्षम नही ों होते हैं और अमनमित जीवन जीते हैं ।

 In India, labour laws fall in the concurrent list and are extremely complicated, therefore
there was a need to bring reform by addressing some of the issues like multiple definition
of wages, low wages etc.
भारत में, श्रम कानून समवती सूची में आते हैं और बेहद जमटल हैं , इसमलए कुछ मुद्ोों जैसे
मजदू री की बहु पररभाषा, कम मजदू री आमद को सोंबोमधत करके सु धार लाने की आवश्यकता
थी।

 It will also lead to more formalization of the economy.


 यह अथथव्यवस्था के अधधक औऩचाररककरण को भी बढावा दे गा।

 An effective minimum wage policy that targets the vulnerable bottom rung of wage
earners can help in driving up aggregate demand and building and strengthening the
middle class, and thus spur a phase of sustainable and inclusive growth.
एक प्रभावी न्यू नतम मजदू री नीमत, जो वेतन पाने वालोों के कमजोर मनचले पायदान को लमक्षत
करती है , समग्र माोंग को बढाने और मध्यम वगग को मजबूत बनाने में मदद कर सकती है , और
इस प्रकार स्थायी और समावेशी मवकास के एक चरण को बढावा दे सकती है।

 Minimum wages can promote social justice without any major negative implication for
employment if wages are set at an adequate level.
यमद मजदू री पयाग प्त स्तर पर मनधाग ररत की जाती है तो न्यू नतम मजदू री रोजगार के मलए मकसी
भी बड़े नकारात्मक प्रभाव के मबना सामामजक न्याय को बढावा दे सकती है।

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Timeline of adoption of National Minimum Wage


(राष्ट्रीय न्यूनतम वेतन को अपनाने का घटनाक्रम)
1969  First National Commmission on Labour.
श्रम पर पहला राष्ट्रीय आयोग।

 Recommendation : National Minimum wage is neither ‘feasible nor desirable’.


अनुशोंसा: राष्ट्रीय न्यू नतम मजदू री न तो 'व्यवहायग है और न ही वाोंछनीय' है।
1978  Bhoothalingam Committee (भूतमलोंगम समममत)
 Argued for adoption of National floor level Minimum Wage to ensure a
uniform wage for all workers and enhance protection of the most vulnerable
workers and eliminate arbitrariness in the determination of level of minimum
wages for different states and occupations. Recommendations were mainly for
the organized sector.
सभी श्रममकोों के मलए एक समान वेतन सुमनमित करने और सबसे कमजोर श्रममकोों
की सुरक्षा बढाने और मवमभन्न राज्ोों और व्यवसायोों के मलए न्यू नतम मजदू री के
स्तर के मनधागरण में मनमानी को खत्म करने के मलए राष्ट्रीय स्तर के न्यू नतम वे तन
को अपनाने के मलए तकग मदया। मसफाररशें मुख्य रूप से सोंगमित क्षेत्र के मलए थी ों।

 Unorganized sector and agriculture were left out.


असोंगमित क्षेत्र और कृमष को छोड़ मदया गया।
1991  National Commision on Rural Labour.
ग्रामीण श्रम पर राष्ट्रीय आयोग

 Recommended for a National floor Level Minimum Wage as wide disparites


were prevalent in minimum wages across States.
राष्ट्रीय स्तर पर न्यू नतम मजदू री के मलए अनुशोंमसत क्ोोंमक राज्ोों में न्यूनतम
मजदू री में व्यापक असमानताएों प्रचमलत थी ों।
1996  Central Government adopted non-statutory National floor Level Minimum
(N.F.L.M.W)- 35 per day was notified.
केंद्र सरकार ने गैर- साों मवमधक राष्ट्रीय मोंमजल स्तर न्यूनतम (एन.एफ.एल.एम.डब्ल्यू)
- 35 प्रमत मदन को अपनाया।

 This NFLMW is updated regularly as per CPI.


यह एन.एफ.एल.एम.डब्ल्यू , सी.पी.आई के अनुसार मनयममत रूप से सुधार मकया
जाता है।

 This NFLMW is 176 per day w.e.f 01.06.2017


यह एन.एफ.एल.एम.डब्ल्यू 01.06.2017 से प्रमत मदन 176 है

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Code on Wages Act 2019 (वेतन अधिधनयम 2019 पर कोड)

 The new wage code removes the multiplicity of wage definitions, which can significantly
reduce litigation as well as compliance cost for employers.
नया वेतन कोड वेतन पररभाषाओों की बहुलता को हटा दे ता है , जो मनयोक्ताओों के मलए
मुकदमेबाजी के साथ-साथ अनुपालन लागत को काफी कम कर सकता है।

 The new Act links minimum wage across the country to the skills of the employee and the
place of employment.
 नया अमधमनयम दे श भर में न्यूनतम वेतन को कमग चारी के कौशल और रोजगार के स्थान से
जोड़ता है।

 It seeks to universalizes the provisions of minimum wages and timely payment of


wages to all employees irrespective of the sector and wage ceiling.
यह सभी कमगचाररयोों को न्यूनतम वेतन और समय पर वेतन भुगतान के प्रावधानोों को
सावगभौममक बनाने का प्रयास करता है , भले ही यह क्षेत्र और वेतन सीमा कुछ भी हो।

It seeks to ensure "Right to Sustenance" for every worker and intends to increase the
legislative protection of minimum wage.
यह प्रत्येक कायगकताग के मलए "मनवागह का अमधकार" सुमनमित करना चाहता है और न्यूनतम
मजदू री के मवधायी सोंरक्षण को बढाने का इरादा रखता है ।

 A National Floor Level Minimum Wage will be set by the Centre and will be revised
every five years, while states will fix minimum wages for their regions, which cannot
be lower than the floor wage.
एक राष्ट्रीय तल स्तर न्यू नतम वेतन केंद्र द्वारा मनधाग ररत मकया जाएगा और हर पाों च साल में
सोंशोमधत मकया जाएगा, जबमक राज् अपने क्षेत्रोों के मलए न्यू नतम मजदू री तय करें गे, जो मक
मोंमजल मजदू री (floor wage) से कम नही ों हो सकती।

 It subsumes the following four labour laws:


यह मनम्नमलखखत चार श्रम कानूनोों को समामहत करता है:
o The Payment of Wages Act, 1936 (वेतन भुगतान अमधमनयम, 1936)
o The Minimum Wages Act, 1948 (न्यू नतम मजदू री अमधमनयम, 1948)
o The Payment of Bonus Act, 1965 (बोनस भुगतान अमधमनयम, 1965)
o The Equal Remuneration Act, 1976. (समान पाररश्रममक अमधमनयम, 1976)

Types of Wages (मजदरू ी के प्रकार)

 Minimum Wage: International Labour Organisation defines it as “the minimum amount of


remuneration that an employer is required to pay wage earners for the work performed
during a given period, which cannot be reduced by collective agreement or an individual
contract”.

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न्यूनतम मजदू री: अोंतराग ष्ट्रीय श्रम सोंगिन इसे "पाररश्रममक की न्यूनतम रामश के रूप में
पररभामषत करता है जो एक मनयोक्ता को एक मनमित अवमध के दौरान मकए गए काम के मलए
वेतन पाने वालोों को भुगतान करने की आवश्यकता होती है , मजसे सामूमहक समझौते या
व्यखक्तगत अनुबोंध द्वारा कम नही ों मकया जा सकता है"।

 The minimum wage includes the bare needs of life like food, shelter, and clothing.
न्यूनतम मजदू री में भोजन, आवास और वस्त्र जैसी जीवन की न्यूनतम जरूरतें शाममल हैं।
 Living Wage: It is the wage needed to provide the minimum income necessary to pay
for basic needs based on the cost of living in a specific community.
 मनवागह-मजदू री: यह एक मवमशष्ट् समुदाय में रहने की लागत के आधार पर बुमनयादी
जरूरतोों के भुगतान के मलए आवश्यक न्यूनतम आय प्रदान करने के मलए आवश्यक मजदू री
है।
 In addition to bare needs, a ‘living wage’ includes education, health, insurance, etc.
न्यूनतम जरूरतोों के अलावा, एक ' मनवागह-मजदू री’ में मशक्षा, स्वास्थ्य, बीमा आमद शाममल
हैं।
 Fair Wage: A ‘fair wage’ is a mean between ‘living wage’ and ‘minimum wage’.
उमचत मजदू री: 'उमचत मजदू री' 'जीमवत मजदू री' और 'न्यू नतम मजदू री' के बीच का एक माध्य
है।
 Starvation Wage: It refers to the wages which are insufficient to provide the ordinary
necessities of life.
भुखमरी मजदू री: यह उन मजदू री को सों दमभगत करता है जो जीवन की सामान्य आवश्यकताएों
प्रदान करने के मलए अपयागप्त हैं।

Concerns with New Wage Code (नए वेतन संहहता से संबंधधत धचंताएं)

 Starvation Wages: It has been alleged that the new wage code will push the starvation
wages further by increasing the income capacity and purchasing power of the informal
workers.
भुखमरी मजदू री : यह आरोप लगाया गया है मक नया वेतन कोड अनौपचाररक श्रममकोों की आय
क्षमता और क्रय शखक्त को बढाकर भुखमरी मजदू री को और आगे बढाएगा।

o The increase in purchasing power of the workers will lead to the decrease in savings
which inturn will reduce expenditure for productive purposes.
श्रममकोों की क्रय शखक्त में वृखि से बचत में कमी आएगी मजससे उत्पादक उद्े श्योों के मलए
व्यय कम हो जाएगा।

o The introduction of concept of “floor wages” would mean that “starvation wages”
which currently guarantees just ₹178 per day, will continue to exist and would
promote forced labour.
"फ्लोर वे ज" की अवधारणा की शुरुआत का मतलब होगा मक "भु खमरी मजदू री" जो
वतगमान में प्रमत मदन मसफग 178 रुपये की गारों टी दे ती है , मौजूद रहेगी और मजबूर श्रम
को बढावा दे गी।

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o This has been highlighted by Supreme Court in his judgement in U. Unichoyi and
Others vs. The State of Kerala case, where it remarked that in an underdeveloped
country which faces the problem of unemployment on a very large scale, it is likely
that labour offers to work even on starvation wages.
यू. यूमनचोमयक और अन्य बनाम केरल राज् के मामले में सुप्रीम कोटग ने अपने फैसले में
इस पर प्रकाश डाला है , जहाों उसने मटप्पणी की थी मक एक अमवकमसत दे श में जो बहुत
बड़े पैमाने पर बेरोजगारी की समस्या का सामना करता है , यह सोंभावना है मक श्रममक
भुखमरी मजदू री पर भी काम करने की पेशकश करता है।
 Deduction of Wages Clause: The new law provides for the arbitrary deduction of wages
(upto 50% of monthly wage) based on performance, damage or loss, advances etc.
वेतन कटौती खोंड: नया कानून प्रदशगन, क्षमत या हामन, अमग्रम आमद के आधार पर मजदू री
(मामसक वेतन का 50% तक) की मनमानी कटौती का प्रावधान करता है।

o The deduction clause will lead to reduced bargaining power and right of association
of workers. The workers will not be able to demand even basic work rights in fear
of wage deduction.
कटौती खोंड से सौदे बाजी की शखक्त कम हो जाएगी और श्रममकोों के सोंघ का अमधकार
कम हो जाएगा। मजदू री कटौती के डर से मजदू र बुमनयादी काम के अमधकार की भी
माोंग नही ों कर पाएों गे।

o In India, the informal sector employers dominate the workers due to caste and
higher social status, therefore the above provision may have the potential to
become a handy tool for exploitation of these workers.
o भारत में, अनौपचाररक क्षेत्र के मनयोक्ता जामत और उच्च सामामजक खस्थमत के कारण
श्रममकोों पर हावी हैं, इसमलए उपरोक्त प्रावधान में इन श्रममकोों के शोषण के मलए एक
उपयोगी उपकरण बनने की क्षमता हो सकती है।

In Raptakos case (1991), the Supreme Court advocated the concept and the right of
living wage.
राप्तकोस मामले (1991) में, सवोच्च न्यायालय ने ‘मनवागह-मजदू री’ की अवधारणा और अमधकार
की वकालत की।

“Consumer Expenditure Survey” result shows that the average family expenditure in rural
areas to be ₹83 per day and in urban areas as ₹134 per day.
"उपभोक्ता व्यय सवेक्षण" पररणाम दशागता है मक ग्रामीण क्षेत्रोों में औसत पाररवाररक व्यय ₹83 प्रमत
मदन और शहरी क्षेत्रोों में ₹134 प्रमत मदन है।

Inspection Framework: The rules do not clarify the governance and institutional
structure for “labour inspection system”. The rules propose an ad-hoc unclear
mechanism called “inspection scheme”.
मनरीक्षण ढाोंचा: मनयम "श्रम मनरीक्षण प्रणाली" के मलए शासन और सोंस्थागत सोंरचना को
स्पष्ट् नही ों करते हैं। मनयम "मनरीक्षण योजना" नामक एक तदथग अस्पष्ट् तोंत्र का प्रस्ताव करते
हैं।

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o The scheme provides for appointment of Inspector – cum – Facilator by


notification by the appropriate government. This may lead to the revival of
inspector – raj system in the labour market.
यह योजना उपयुक्त सरकार द्वारा अमधसूचना द्वारा मनरीक्षक - सह - सुमवधाकताग की
मनयुखक्त का प्रावधान करती है। इससे श्रम बाजार में मनरीक्षक - राज प्रणाली का
पुनरुिार हो सकता है।

o The International Labour Organisation’s (ILO) Labour Inspection Convention of


1947 (Convention C081) — which has been ratified by India — provides for a
well-resourced and independent inspectorate with provisions to allow thorough
inspections and free access to workplaces. However, the provisions of ILO’s
convention has been overlooked while framing the new law.
अों तराग ष्ट्रीय श्रम सों गिन (ILO) का 1947 का श्रम मनरीक्षण सम्मेलन (कन्वेंशन C081)
- मजसे भारत द्वारा अनुमोमदत मकया गया है - पूरी तरह से मनरीक्षण और कायगस्थलोों
तक मुफ्त पहुोंच की अनुममत दे ने के प्रावधानोों के साथ एक अच्छी तरह से सोंसाधन
और स्वतोंत्र मनरीक्षणालय प्रदान करता है। हालाोंमक, नया कानून बनाते समय ILO के
कन्वेंशन के प्रावधानोों की अनदे खी की गई है।

Way Forward
 The government should focus on “Need Based Minimum Wage” covering nutrition,
healthcare, education, housing and provisions of old-age. Therefore, guaranteed
minimum wage should be treated as a fundamental constitutional right for every
citizen of India.
सरकार को पोषण, स्वास्थ्य दे खभाल, मशक्षा, आवास और वृिावस्था के प्रावधानोों को
शाममल करते हुए "आवश्यकता आधाररत न्यूनतम मजदू री" पर ध्यान दे ना चामहए। इसमलए,
गारों टीशुदा न्यू नतम मजदू री को भारत के प्रत्ये क नागररक के मलए एक मौमलक सों वैधामनक
अमधकार के रूप में माना जाना चामहए।

 According to the new law, the revision of minimum wages is to be done after every 5
year, which is quite a long period considering the volatility in the market. Therefore,
minimum wages should be adjusted to inflation so as to align the wages to market
volatility.
नए कानून के अनुसार, न्यूनतम मजदू री का सों शोधन हर 5 साल के बाद मकया जाना है , जो
मक बाजार में अखस्थरता को दे खते हुए काफी लोंबी अवमध है। इसमलए, न्यू नतम मजदू री को
मुद्रास्फीमत में समायोमजत मकया जाना चामहए तामक मजदू री को बाजार की अखस्थरता के
साथ सोंरेखखत मकया जा सके।

 The National Commission for Labours should be formed to streamline the issues
and challenges of labour market and fixing discrepancies in national level minimum
wage computation.
श्रम बाजार के मुद्ोों और चुनौमतयोों को कारगर बनाने और राष्ट्रीय स्तर पर न्यूनतम वे तन
गणना में मवसोंगमतयोों को िीक करने के मलए राष्ट्रीय श्रम आयोग का गिन मकया जाना
चामहए।

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For the minimum wage system to play a meaningful role in aligning protection with the
promotion of sustainable growth, it must be properly designed, its goals clarified, and its
enforcement made effective.
न्यूनतम वेतन प्रणाली के मलए सतत मवकास को बढावा दे ने के साथ सुरक्षा को सोंरेखखत करने में एक
साथगक भूममका मनभाने के मलए, इसे िीक से मडजाइन मकया जाना चामहए, इसके लक्ष्ोों को स्पष्ट्
मकया जाना चामहए और इसके प्रवतगन को प्रभावी बनाया जाना चामहए।

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THE INDUSTRIAL RELATIONS CODE, 2020
औद्योगगक संबंध संगहता, 0202
Key Changes प्रमुख पररवर्तन
 The definition of worker will be based on the basis of wages being drawn by him and Worker / Employees with
salary up to Rs 18,000 will fall under the category of worker.
श्रममक की पररभाषा उसके द्वारा मिए जा रहे वेर्न के आधार पर होगी और88 , 000रुपये र्क वेर्न वािे कायतकर्ात /कमतचारी श्रममक की श्रेणी में आएं गे।

 Fixed Term Employment, now employer can keep Fixed Term Employees (FTE) for specific duration and
retrenchment compensation not to be paid. These FTE will be entitled same salary or social security as regular
Employee.
मनमिर् अवमध के रोजगार, अब मनयोक्ता मनमिर् अवमध के कमतचाररयों( FTE )को मवमिष्ट अवमध के मिए रख सकर्े हैं और छं टनी मुआवजे का भुगर्ान नहीं
मकया जा सकर्ा है । ये FTE मनयममर् कमतचारी के समान वेर्न या सामामजक सुरक्षा के हकदार होंगे

 Employee can an Industrial raise dispute with the employer within the time limit of only 2 years instead of 3 years.
कमतचारी एक औद्योमगक मववाद को मनयोक्ता के साथ 3 साि के बजाय केवि 2 साि की समय सीमा के भीर्र उठा सकर्ा है।

 Trade union have to give notice of 14 days before going on strike.


टर े ड यूमनयन को हड़र्ाि पर जाने से 84 मदन पहिे नोमटस दे ना होगा।

 Establishment with less 300 workmen can lay-off, retrenched, closed without government approval, earlier this limit was
100 employees.
300से कम कामगार वािे प्रमर्ष्ठान मबना सरकारी मंजूरी के िे-ऑफ, छं टनी, बंद कर सकर्े हैं , पहिे यह सीमा 800 कमतचाररयों की थी।

 The number of members in the Grievance Redressal Committee has been increased from 6 to 10.
मिकायर् मनवारण समममर् में सदस्ों की संख्या 6 से बढाकर 80 कर दी गई है

 Definition of “Appropriate Government” has been modified by including the establishments of the contractors, thus
contractor appropriate government shall be of the establishment where the contract labour has been deployed.
" उपयुक्त सरकार "की पररभाषा में ठे केदारों के प्रमर्ष्ठानों को िाममि करके संिोमधर् मकया गया है , इस प्रकार ठे केदार उपयुक्त सरकार उस प्रमर्ष्ठान की होगी जहां

ठे का श्रममक र्ै नार् मकया गया है ।


Key Changes प्रमुख पररवततन
 The appropriate government shall set up an reskilling fund and the fund shall consist of contribution by an employer equal to fifteen days wages last
drawn by the worker immediately before the Retrenchment. The fund shall be utilised by crediting fifteen days wages last drawn by the worker to his
account who is retrenched, within forty-five days of such retrenchment, in such manner as may be prescribed.
उपयुक्त सरकार एक रीस्किमिंग फंड की स्थापना करे गी और फंड में मनयोक्ता द्वारा छँ टनी से ठीक पहिे कमतचारी द्वारा अंमर्म बार मिए गए पन्द्रह मदनों के वेर्न के .
बराबर अंिदान िाममि होगा। मनमध का उपयोग कमतचारी द्वारा अंमर्म रूप से मनकािे गए पंद्रह मदनों के वेर्न को उसके खार्े में जमा करके मकया जाएगा, मजसकी छं टनी की गई है
, ऐसी छँ टनी के पैंर्ािीस मदनों के भीर्र, इस र्रह से मनधात ररर् मकया जा सकर्ा है।

 Definition of “Employee” has been added in the code and the term 'employee' has been used invariably with the term worker. viz.
'employee/worker' or 'employee and worker' with a view to ensure that there is no discrimination in the applicability of labour laws to the
employee/worker"employee"
कमतचारी "की पररभाषा को संमहर्ा में जोड़ा गया है और 'कमतचारी' िब्द का प्रयोग कायतकर्ात िब्द के साथ मकया गया है । अथात र्। 'कमतचारी/ कायतकर्ात ' या 'कमतचारी और कायतकर्ात '
यह सुमनमिर् करने की दृमष्ट से मक कमतचारी/ कायतकर्ात " कमतचारी "के मिए श्रम कानूनों की प्रयोज्यर्ा में कोई भेदभाव नहीं है ।

 Definition of “ Employer” has been completely modified under section 2 (m) and as per the new definition employer means :-
"मनयोक्ता" की पररभाषा को धारा 2 (एम) के र्हर् पूरी र्रह से संिोमधर् मकया गया है और नई पररभाषा के अनुसार मनयोक्ता का मर्िब है
 Head of the department (मवभाग प्रमुख)
 Occupier of the factory (कारखाने का मामिक)
 Manager of the factory under clause (F) of sub-section (1) of sec 7 of the Factories Act.
कारखाना अमधमनयम की धारा - 7 की उप-धारा (1) के खंड (F) के र्हर् कारखाने के प्रबंधक।
 The person who, or the authority which has ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager
or managing director,such manager or managing director;
वह व्यस्कक्त, या प्रामधकरण मजसका प्रमर्ष्ठान के मामिों पर अंमर्म मनयंत्रण है और जहां उक्त मामिे मकसी प्रबंधक या प्रबंध मनदे िक को स प
ं े जार्े हैं , ऐसे प्रबंधक या प्रबंध मनदे िक;
 Contractor; and ( ठे केदार )
 legal representative of a deceased employer; मृर् मनयोक्ता का कानूनी प्रमर्मनमध
Key Changes प्रमुख पररवततन
 Fixed Term Employment has been incorporated, which is major change introduced in the code:-
मनमिर् अवमध के रोजगार को िाममि मकया गया है , जो कोड में पे ि मकया गया बड़ा बदिाव है - :
 The code provides that the fixed term employee will get all statutory benefits like ESI, EPF, bonus, wages, etc at par with regular
employees who are doing work of same or similar nature.
कोड प्रदान करर्ा है मक मनमिर् अवमध के कमतचारी को सभी वैधामनक िाभ ममिेंगे जैसे - ईएसआई, ईपीएफ, बक्शीि, वही या समान प्रकृमर् के कायत करने वािे मनयममर्
कमतचाररयों
के समान वेर्न आमद।
 The termination of the service of a worker as a result of completion of tenure of fixed term employment would not be a retrenchment.
एक मनमिर् अवमध के कायतकाि के पूरा होने के पररणामस्वरूप एक कायतकर्ात की सेवा की समास्कि रोजगार छटनी नहीं होगी।
 The employee would be eligible for gratuity if he renders service under the contract for a period of one year.
कमतचारी ग्रेच्युटी के मिए पात्र होगा यमद वह एक वषत की अवमध के मिए अनुबंध के र्हर् सेवा प्रदान करर्ा है
 The definition of “industry” has been modified and provides that any systematic activity carried on by cooperation between employer and his workers, whether
such workers are employed by such employer directly or by or through any agency including a contractor. The definition has specifically excluded institutions
owned or managed by organisations wholly or substantially engaged in any charitable, social or philanthropic services; sovereign functions; domestic services.
"उद्योग "की पररभाषा को संिोमधर् मकया गया है और यह प्रदान करर्ा है मक मनयोक्ता और उसके श्रममकों के बीच सहयोग से की जाने वािी कोई भी व्यवस्कस्थर् गमर्मवमध, चाहे ऐसे कमतचारी
ऐसे मनयोक्ता द्वारा सीधे या ठे केदार समहर् मकसी एजेंसी द्वारा या उसके माध्यम से मनयोमजर् मकए जार्े हैं ? । पररभाषा में मविेष रूप से मकसी भी धमात थत में िगे संगठनों के स्वाममत्व या प्रबंधन
वािे संस्थानों को पूरी र्रह से या काफी हद र्क बाहर रखा गया है ; जैसे ; सामामजक या परोपकारी सेवाएं , संप्रभु कायत , घरे िू सेवाएं
 Definition of Industrial Dispute has been modified to include the dispute arising out of discharge, dismissal, retrenchment or termination of such worker.
औद्योमगक मववाद की पररभाषा को संिोमधर् मकया गया है , मजसमें ऐसे कमतचारी को बखात स्त करने, छं टनी या बखात स्तगी से उत्पन्न मववाद को िाममि मकया गया है ।
 Metro railway has been included in the definition of railways.
मेटरो रे िवे को रे िवे की पररभाषा में िाममि मकया गया है ।
 Maximum number of members in the Grievance Redressal Committee has been increased from 6 to 10 in an industrial establishment employing 20 or more
workers.
02या अमधक श्रममकों को रोजगार दे ने वािे औद्योमगक प्रमर्ष्ठान में मिकायर् मनवारण समममर् में सदस्ों की अमधकर्म संख्या 6 से बढाकर 12 कर दी गई है ।
Key Changes प्रमुख पररवततन
 Negotiating union or negotiating council" been inserted in the definition.
वातात संघ या वातात पररषद " को पररभाषा में शागमल गकया गया है
 The "Trade Union dispute" has been added, which provides dispute relating to Trade Union arising between two or more Trade Unions or
between the members of a Trade Union inter se;
"ट्र े ड यूगनयन गववाद "जोडा गया है, जो दो या दो से अगधक ट्र े ड यूगनयनों के बीच या एक ट्र े ड यूगनयन के सदस्ों के बीच उत्पन्न होने वाले ट्र े ड यूगनयन से संबंगधत गववाद
प्रदान करता है

 Definition of wages has been revised:- ( मजदू री की पररभाषा में संशोधन गकया गया है-: )
 The First part includes all salary components express in terms of money are capable of being so expressed like basic salary, all reimbursements, all
allowances, all benefits.
पहले भाग में सभी वेतन घट्क शागमल हैं जो पैसे के संदभत में व्यक्त गकए जाने में सक्षम हैं जैसे मूल वेतन, सभी प्रगतपूगतत, सभी भत्ते, सभी लाभों की तरह व्यक्त गकया गया।
 Second part of the definition provide specific exclusion like:- Bonus payable under any law, Conveyance allowance, House rent allowance,
Overtime Allowance, House Accommodation, Supply of light water medical attendance, other amenities/ service excluded by a General or special
order of the appropriate government, Commission, contribution to provident fund/pension, Any sum paid to defray special expenses, Gratuity,
Retrenchment Compensation, Remuneration payable under any award or settlement between the parties.
पररभाषा का दू सरा भाग गवगशष्ट बगहष्करण प्रदान करता है जैसे:- गकसी भी कानून के तहत दे य बोनस, वाहन भत्ता, मकान गकराया भत्ता, ओवरट्ाइम भत्ता,
आवास, हल्के पानी की आपूगतत गचगकत्सा उपस्थथगत, अन्य सुगवधाएं /सेवा को सामान्य या गवशे ष आदे श से बाहर रखा गया है। उपयुक्त सरकार, आयोग, भगवष्य
गनगध/पेंशन में योगदान, गवशेष खचों को चुकाने के गलए भुगतान की गई कोई भी रागश, ग्रेच्युट्ी, छं ट्नी मुआवजा, पाररश्रगमक गकसी भी पुरस्कार के तहत दे य
या पागट्त यों के बीच समझौता।
 The Third part of the definition provides that the total excluded components should not exceed 50% of the total remuneration. The third part of
the definition provide limit as the definition very clearly specifies the list of exclusions so anything which is paid to the employees other than the
exclusion would be covered and within this specific exclusion the limit cannot be more than 50%.
पररभाषा का तीसरा भाग प्रदान करता है गक कुल बगहष्कृत घट्क कुल पाररश्रगमक के05 % से अगधक नही ं होने चागहए। पररभाषा का तीसरा भाग सीमा प्रदान
करता है क्ोंगक पररभाषा बहुत स्पष्ट रूप से बगहष्करणों की सूची को गनगदत ष्ट करती है, इसगलए जो कुछ भी कमतचाररयों को बगहष्करण के अलावा भुगतान गकया
जाता है उसे कवर गकया जाएगा और इस गवगशष्ट बगहष्करण के भीतर सीमा05 % से अगधक नही ं हो सकती है।
Key Changes प्रमुख पररवततन
 A new feature of “Recognition of Negotiating Union” has been introduced. The Code provides for a negotiation union in an industrial establishment, having
registered trade unions, for negotiating withthe employer.
"मनगोमियेमटं ग यूमनयन की मान्यर्ा" की एक नई मविे षर्ा पेि की गई है । सं महर्ा मनयोक्ता के साथ बार्चीर् करने के मिए पं जीकृर् टर े ड यू मनयनों वािे एक औद्योमगक प्रमर्ष्ठान में एक वार्ात सं घ
का प्रावधान करर्ी है ।
 If there is only one trade union in an industrial establishment, the employer is required to recognise such trade union as the sole negotiating
union of the workers.
यमद मकसी औद्योमगक प्रमर्ष्ठान में केवि एक टर े ड यूमनयन है , र्ो मनयोक्ता के मिए आवश्यक है : ऐसे टर े ड यूमनयन को श्रममकों की एकमात्र बार्चीर् करने वािी यूमनयन के रूप
में मान्यर्ा दें ।
 In case of multiple trade unions, the trade union with support of at least 51% of workers on the muster roll of that establishment will be
recognised as the sole negotiating union by the employer.
कई टर े ड यूमनयनों के मामिे में , उस प्रमर्ष्ठान के मस्टर रोि पर कम से कम11 % श्रममकों के समथतन वािे टर े ड यूमनयन को मनयोक्ता द्वारा एकमात्र वार्ात संघ के रूप में
मान्यर्ा दी जाएगी।
 The provisions of Standing Orders on Industrial establishments will be applicable having 300 or more than 300 workers as notified by the appropriate
Government.
औद्योमगक प्रमर्ष्ठानों पर स्थायी आदे िों के प्रावधान उपयुक्त सरकार द्वारा अमधसूमचर् 300 या 300 से अमधक श्रममकों पर िागू होंगे
 The Code prohibits strikes or lock-outs in any establishment unless a prior notice of 14 days is provided. Similar provisions existed in the Industrial
Disputes Act, 1947 for public utility services (such as, railways and airlines). The Code expands these provisions to apply to all industrial establishments.
This will impact the ability of workers to strike and employers to lock-out.
संमहर्ा मकसी भी प्रमर्ष्ठान में हड़र्ाि या र्ािाबंदी पर रोक िगार्ी है जब र्क मक 11 मदनों की पूवत सूचना प्रदान नहीं की जार्ी है । सावतजमनक उपयोमगर्ा सेवाओं )जैसे, रे िवे और
(एयरिाइं स (के मिए औद्योमगक मववाद अमधमनयम, 1917में इसी र्रह के प्रावधान म जूद थे। संमहर्ा सभी औद्योमगक प्रमर्ष्ठानों पर िागू होने के मिए इन प्रावधानों का मवस्तार करर्ी है ।
इससे श्रममकों की हड़र्ाि करने की क्षमर्ा और मनयोक्ताओं को र्ािाबंदी करने की क्षमर्ा प्रभामवर् होगी।
 An industrial disputes can be voluntarily referred to arbitration by the employer as well as the workers. The parties to the dispute are required to execute
a written agreement referring the disputeto an arbitrator.
एक औद्योमगक मववाद को मनयोक्ता और साथ ही श्रममकों द्वारा स्वेच्छा से मध्यस्थर्ा के मिए भेजा जा सकर्ा है । मववाद के पक्षों को एक मध्यस्थ को मववाद का उल्रेख करर्े हुए एक मिस्कखर्
समझ र्े को मनष्पामदर् करने की आवश्यकर्ा होर्ी है ।
Key Changes प्रमुख पररवततन
 The worker may approach the Industrial Tribunal for adjudication of the dispute related to dismissal, retrenchment or
termination within 45 days after the application for the conciliation of the dispute was made.
कायतकर्ात मववाद के समाधान के मिए आवेदन मकए जाने के 45 मदनों के भीर्र बखात स्तगी, छं टनी या समास्कि से संबंमधर् मववाद के मनणत य के मिए औद्योमगक
न्यायामधकरण से संपकत कर सकर्ा है ।
 Employers of industrial establishments such as mines, factories and plantations with at least 300 workers are mandatorily
required to take prior permission of the central or state government before lay-off, retrenchment or closure. A fine of INR
1,00,000, which may extend up to INR 10,00,000, is leviable on any person who contravenes this provision.
कम से कम 300 श्रममकों वािे खदानों, कारखानों और बागानों जै से औद्योमगक प्रमर्ष्ठानों के मनयोक्ताओं को छं टनी, छं टनी या बंद करने से पहिे
केंद्र या राज्य सरकार की पूवत अनुममर् िे ना अमनवायत है । INR 8,00, 000का जुमात ना, जो INR 80,00, 000र्क हो सकर्ा है , इस प्रावधान का
उल्रंघन करने वािे मकसी भी व्यस्कक्त पर िगाया जा सकर्ा है ।
 In case any worker is suspended by the employer pending investigation or inquiry. The amount of subsistence allowance
payable at 50% of the wages for the first 90 days of suspension; and at the rate of 75% of such wages for the remaining period
of suspension.
मकसी मामिे में कमतचारी को जांच या पूछर्ाछ के मिए मनयोक्ता द्वारा मनिं मबर् कर मदया जार्ा है । तो मनिं बन के पहिे 90 मदनों के मिए मजदू री
के
50% पर दे य मनवात ह भत्ता की रामि; और मनिं बन की िेष अवमध के मिए ऐसे वेर्न के75 % की दर से।
THE SOCIAL SECURITY CODE, 2020
सामामजक सुरक्षा संमहर्ा, 0202
Key Changes प्रमुख पररवर्तन
 New Category of worker has been included in this code:-
इस कोड में नई श्रेणी के कायतकर्ात को िाममि मकया गया है-:
 Gig worker" means a person who performs work or participates in a work arrangement and earns from such activities
outside of traditional employer- employee relationship.
मगग वकतर "का अथत उस व्यस्कक्त से है जो काम करर्ा है या कायत व्यवस्था में भाग िे र्ा है और पारं पररक मनयोक्ता-कमतचारी संबंधों के बाहर ऐसी
गमर्मवमधयों से कमार्ा है।
(Gig worker- एक व्यक्ति जो एक स्वतत्र ं ठे केदार या फ्रीलांसर के रूप में सेवा क्षेत्र में आम तौर पर अस्थायी नौकरी करता है उसे क्तिि
वकक सक कहते है। जैसे की: उच्च-भिु तान देने वाली नौकररयां , सपं क्ति बेचना या क्तकराए पर देना , क्तिटनेस ट्रेक्तनंि या
कोक्तचिं , फ्रीलांस काम या परामर्क, ई-कॉमसक या ड्रॉप क्तर्क्तपंि, अध्यापन करना और वस्तओु ं को ऑनलाइन पनु क्तवक्र क य
करना आक्तद क्तिि वकक सक के कायक के अंतिकत आता है।)
 Platform worker" means a person engaged in or undertaking platform work
"प्लेटफॉमत कायतकर्ात "का अथत प्लेटफॉमत कायत में िगा हुआ या उपक्रम करने वािा व्यस्कक्त है
प्लेटफामम कायमकर्ाम-
प्लेटफॉमम वकम र का र्ात्पयम ककसी ऐसे सगं ठन के कलए काम करने वाले कायमकर्ाम से है जो सीधे व्यकियों या सगं ठनों को ऑनलाइन प्लेटफॉमम का उपयोग करके कवकिष्ट सेवाएँ प्रदान
करर्ा है।
1. प्लेटफॉमम वकम सम के उदाहरणों में ओला या उबर ड्राइवर, कववगी या जोमैटो कडलीवरी एजेंट आकद िाकमल हैं।
2. सामाकजक सुरक्षा संकहर्ा एक प्लेटफॉमम कायमकर्ाम को "प्लेटफॉमम कायम में लगे या उपक्रम करने वाले व्यकि" के रूप में पररभाकिर् करर्ी है।
3. यह काम भी पारंपररक कममचारी-कनयोिा संबंध से बाहर है।
 Platform work" means a form of employment in which organisations or individuals use an online platform to access
other organisations or individuals to solve specific problems or to provide specific services in exchange for payment.
प्लेटफॉमत वकत "का अथत रोजगार का एक रूप है मजसमें संगठन या व्यस्कक्त मवमिष्ट समस्ाओं को हि करने के मिए या भुगर्ान के बदिे में मवमिष्ट
सेवाएं प्रदान करने के मिए अन्य संगठनों या व्यस्कक्तयों र्क पहुं चने के मिए ऑनिाइन प्लेटफॉमत का उपयोग करर्े हैं ।
 There is no major difference in gig workers and platform workers. This is first time in India that application based assignments
performed by many workers being recognized as employee-employer relationship.
मगग वकतसत और प्लेटफॉमत वकतसत में कोई बड़ा अंर्र नहीं है । यह भारर् में पहिी बार है मक कई श्रममकों द्वारा मकए गए आवेदन आधाररर् असाइनमेंट को
कमतचारी- मनयोक्ता संबंध के रूप में मान्यर्ा दी गई है ।

.
Key Changes प्रमुख पररवततन
 Definition of wages has been revised:
मजदू री की पररभाषा में संिोधन मकया गया है -:
 The First part includes all salary components express in terms of money are capable of being so expressed like basic salary, all
reimbursements, all allowances, all benefits.
पहिे भाग में सभी वेर्न घटक िाममि हैं जो पैसे के संदभत में व्यक्त मकए जाने में सक्षम हैं जैसे मूि वेर्न प्रमर्पूमर्त , सभी भत्ते , सभी िाभ।
 Second part of the definition provide specific exclusion like:- Bonus payable under any law, Conveyance allowance, House rent allowance,
Overtime Allowance, House Accommodation, Supply of light water medical attendance, other amenities/ service excluded by a General or
special order of the appropriate government, Commission, contribution to provident fund/pension, Any sum paid to defray special expenses,
Gratuity, Retrenchment Compensation, Remuneration payable under any award or settlement between the parties.
पररभाषा का दू सरा भाग मवमिष्ट बमहष्करण प्रदान करर्ा है जैसे - :मकसी भी कानून के र्हर् दे य बोनस, वाहन भत्ता, मकान मकराया भत्ता, ओवरटाइम भत्ता, मनवास स्थान,
हल्के
पानी की आपूमर्त ,मचमकत्सा उपस्कस्थमर्, अन्य सुमवधाएं / सेवा के एक सामान्य या मविेष आदे ि से बाहर रखा गया हैं उपयुक्त सरकार, आयोग, भमवष्य मनमध/पेंिन में योगदान, मविेष
खचों को चुकाने के मिए भुगर्ान की गई कोई भी रामि, छं टनी मुआवजा, पामटत यों के बीच मकसी भी पुरिार या समझ र्े के र्हर् दे य पाररश्रममक।

 The Third part of the definition provides that the total excluded components should not exceed 50% of the total remuneration. The 
third part of the definition provide limit as the definition very clearly specifies the list of exclusions so anything which is paid to the
employees other than the exclusion would be covered and within this specific exclusion the limit cannot be more than 50%.
पररभाषा का र्ीसरा भाग प्रदान करर्ा है मक कुि बमहष्कृर् घटक कुि पाररश्रममक के 50% से अमधक नहीं होने चामहए। पररभाषा का र्ीसरा भाग सीमा प्रदान करर्ा है क्ोंमक
पररभाषा बहुर् स्पष्ट रूप से बमहष्करणों की सूची को मनमदत ष्ट करर्ी है , इसमिए जो कुछ भी कमतचाररयों को बमहष्करण के अिावा भुगर्ान मकया जार्ा है उसे कवर मकया जाएगा और
इस मवमिष्ट बमहष्करण के भीर्र सीमा 50% से अमधक नहीं हो सकर्ी है ।
Impact:
As of now HRA is a part of minimum wages and with the implementation of code, HRAwill not be part of minimum wages will have
an implication of the EPF contribution.
अब र्क एचआरए न्यूनर्म मजदू री का एक महस्सा है ,और कोड के कायात न्वयन के साथ एचआरए न्यूनर्म मजदू री का महस्सा नहीं होगा। इसका ईपीएफ योगदान पर प्रभाव पड़े गा I
Key Changes प्रमुख पररवततन
The Employees Provident Fund Scheme
कमतचारी भमवष्य मनमध योजना

 Major reforms in the Employees Provident Fund Scheme is incorporation of limitation period of five years for initiation and two years for concluding
enquiries.
 Aadhaar based registration is mandated.
आधार आधाररर् पंजीकरण अमनवायत है ।
 All establishments having 20 or more workers come under the purview of EPF, earlier it was applicable only on those establishments included in the schedule.
20 या इससे अमधक कमतचारी वािे सभी प्रमर्ष्ठान ईपीएफ के दायरे में आर्े हैं, पहिे यह केवि उन्ीं प्रमर्ष्ठानों पर िागू होर्ा था जो अनुसूची में िाममि थे।
 Systems has been designed for covering the category self-employed or any other category under the purview of EPF scheme.
ईपीएफ योजना के दायरे में स्वरोजगार या मकसी अन्य श्रे णी को कवर करने के मिए मसस्टम र्ैयार मकए गए हैं ।
 Increase penalty amount from 10,000 to 1,00,000 and imprisonment of one to three years on deduction of employee contribution from salary and non-depositing.
वेर्न से कमतचारी के अंिदान की कट र्ी और जमा न करने पर जुमात ने की रामि को 10,000 से बढाकर 1,00,000 और एक से र्ीन साि की कैद।
 Subsequent failure to pay contributions attracts imprisonment of two to five years and fine of three lakh rupees.
बाद में योगदान का भुगर्ान करने में मवफिर्ा के मिए दो से पां च साि की कैद और र्ीन िाख रुपये का जुमात ना िगर्ा है ।
Key Changes प्रमुख पररवततन
Employees State Insurance Scheme ( कमतचारी राज्य बीमा योजना )
If employer and majority employees agree then voluntary registration has been allowed under the code and ESI scheme will be applicable.
Further, government can extend ESI scheme to any hazardous occupation also even if a single employee is employed.
यमद मनयोक्ता और बहुसंख्यक कमत चारी सहमर् हैं र्ो कोड के र्हर् स्वैस्कच्छक पंजीकरण की अनु ममर् दी गई है और ईएसआई योजना िागू होगी। इसके अिावा, सरकार मकसी भी खर्रनाक व्यवसाय के मिए भी
ईएसआई योजना का मवस्तार कर सकर्ी है , भिे ही एक कमत चारी कायतरर् हो।

 The Facility of ESI would be available to all 740 districts.


ईएसआई की सुमवधा सभी 712 मजिों में उपिब्ध होगी।
 Gig workers and unorganized sectors will also able to link with ESIC.
मगग कायतकर्ात और असंगमठर् क्षेत्र के िोग भी ईएसआईसी से जुड़ सकेंगे।
 Plantation workers will also fall under the purview of ESI.
बागान मजदू र भी ईएसआई के दायरे में आएं गे।
 If any employer fails to pay ESI contributions, even then ESI has to pass on the benefits to the employee which ESIC can recover it from the employer to the
extent of the capitalised value of the benefit net of any payment of contribution amount, interest and damages payable by the employer.
यमद कोई मनयोक्ता ईएसआई योगदान का भु गर्ान करने में मवफि रहर्ा है, र्ब भी ईएसआई को कमत चारी को िाभ दे ना पड़र्ा मजसे ईएसआईसी मनयोक्ता से योगदान रामि, ब्याज और नु कसान के
मकसी भी भु गर्ान के िाभ के पूंजीकृर् मू ल्य की सीमा र्क वसूि कर सकर्ा है ।
Gratuity(उपहार)
 Permanent employees would be eligible for gratuity after completion of five years as presently exist under the Act, while fixed-term employees will have no such
criteria, such employees will be paid on the basis of their tenure of employment with one organization. Code has fixed different threshold with respect to
eligibility for gratuity of permanent and fixed term employees.
स्थायी कमतचारी पां च साि पूरे होने के बाद उपहार के मिए पात्र होंगे जैसा मक वर्तमान में अमधमनयम के र्हर् म जूद है , जबमक मनमिर् अवमध के कमतचाररयों के मिए ऐसा कोई मानदं ड नहीं
होगा, ऐसे कमतचाररयों को उनके एक संगठन के साथ रोजगार के कायतकाि के आधार पर भुगर्ान मकया जाएगा। स्थायी और मनमिर् अवमध के कमतचाररयों की उपहार के मिए पात्रर्ा के
संबंध में कोड ने अिग-अिग सीमा र्य की है ।
 The threshold Gratuity period for working journalists reduces from five years to three years.
कामकाजी पत्रकारों के मिए उपहार की सीमा पां च साि से घटाकर र्ीन साि कर दी गई है ।
Key Changes प्रमुख पररवततन
Employment Information and Monitoring ( रोजगार सूचना और मनगरानी)
 Employers, job seekers looking for vocational guidance, career counseling, self employment requires to register with career centres.
व्यावसामयक मागतदित न, कररयर परामित , स्वरोजगार की र्िाि करने वािे मनयोक्ताओं, न करी चाहने वािे कैररयर केंद्रों के साथ पंजीकरण करने की आवश्यकर्ा है ।
 All establishment except some exclusion like agriculture, domestic service, employment less than ninety days etc required to notify the
vacancies to career centres electronically or otherwise.
कुछ अपवजत न जै से कृमष, घरे िू सेवा, नब्बे मदनों से कम के रोजगार आमद को छोड़कर सभी प्रमर्ष्ठानों को इिे क्ट्रॉमनक रूप से या अन्यथा कैररयर केंद्रों को
ररस्कक्तयों को सूमचर् करने की आवश्यकर्ा है
 Filing the return by the employer to the concerned career centre.
मनयोक्ता द्वारा संबंमधर् कैररयर केंद्र में ररटनत दास्कखि करना।

Maternity Benefit (मार्ृत्व िाभ)

 Every woman is entitled to medical bonus of up to Rs 3,500 where pre-natal confinement and post-natal care is not provided by employer
whose upper limit can be amend by the Central government upto Rs 20000/- , this upper limit of Rs 20000 has been removed under the code.
प्रत्येक ममहिा3 , 122रुपये र्क के मेमडकि बोनस की हकदार है , जहां मनयोक्ता द्वारा प्रसव पू वत और प्रसवोत्तर दे खभाि प्रदान नहीं की जार्ी है , मजसकी ऊपरी
सीमा को केंद्र सरकार द्वारा02222 /- रुपये र्क संिोमधर् मकया जा सकर्ा है , कोड के र्हर् 20000 रुपये की इस ऊपरी सीमा को हटा मदया गया है

Key Changes प्रमुख पररवततन
Employee's compensation Act, 1923, Building and other construction workers, The Unorganized Workers' Social Security Act (2008), etc.
कमतचारी मुआवजा अमधमनयम, 1903, भवन और अन्य मनमात ण श्रममक, असंगमठर् श्रममक सामामजक सुरक्षा अमधमनयम) 0228(, आमद।
 Creation of social security boards for unorganized workers.
असंगमठर् मज़दू र के मिए सामामजक सुरक्षा बोडत बनाना।
 Coverage of gig, platform workers and unorganized workers under the ambit of social security Scheme.
सामामजक सुरक्षा योजना के दायरे में मगग, मंच कायतकर्ात और असंगमठर् कामगारों का कवरे ज।

 Code to expand the sources of the fund for schemes to include funds from corporate social responsibility or any other source as may be specified in the
scheme and also contains enabling provision for constituting the special purpose vehicle for the purpose of implementation of schemes for unorganized
workers.
योजनाओं के मिए मनमध के स्रोर्ों का मवस्तार करने के मिए कोड, मनगममर् सामामजक मजम्मेदारी या मकसी अन्य स्रोर् से धन िाममि करने के मिए जैसा मक योजना में मनमदत ष्ट मकया जा
सकर्ा है और इसमें असंगमठर् श्रममकों के मिए योजनाओं के कायात न्वयन के उद्दे श्य के मिए मविेष प्रयोजन वाहन के गठन के मिए सक्षम प्रावधान भी िाममि है ।.
 Bill also makes the provisions for registration of all three categories of workers - gig workers platform workers and unorganized workers.
मबि र्ीनों श्रेमणयों के कामगारों - मगग वकतसत प्लेटफॉमत वकतसत और असंगमठर् कामगारों के पंजीकरण का प्रावधान भी करर्ा है ।
 Contribution from an aggregator will be at a rate notified by the government which can fall between 1-2% of the annual turnover of the aggregators. However,
the maximum limit of such contribution fixed @ 5% of the amount paid or payable by an aggregator to gig workers and platform workers.
एक एग्रीगेटर से अंिदान सरकार द्वारा अमधसूमचर् दर पर होगा जो एग्रीगेटसत के वामषतक कारोबार के1 -0% के बीच मगर सकर्ा है । हािां मक, इस र्रह के योगदान की अमधकर्म सीमा
सीमा मगग कमी और प्लेटफॉमत वकतसत को एग्रीगेटर द्वारा भु गर्ान या दे य रामि के1 % की दर से र्य की गई है ।

General Change(सामान्य पररवर्त न)

 Renaming the designation of Inspector as Inspector cum Facilitator who is expected to supply Information and give advice to employers and workers concerning the most
effective means of Complying with the provisions of the proposed Code.
 ननयीऺक के ऩद का नाभ फदरकय ननयीऺक सह पैसससरटे टय कयना, जो प्रस्तावित संहहता के प्रािधानों के अनुऩारन के सफसे प्रबािी साधनों के संफंध भें सूचना की आऩूनति कयने औय ननमोक्ताओं
औय श्रसभकों को सराह दे ने की अऩेऺा कयता है I
THE OCCUPATIONAL SAFETY,HEALTH AND
WORKING CONDITIONS CODE, 2020
(व्यावसामयक सुरक्षा, स्वास्थ्य और काम करने की
स्कस्थमर् संमहर्ा, 0202)
Key Changes प्रमुख पररवततन
 Code provides single registration for an establishment instead of multiple registrations. This will design a centralized database and develop an ease of doing business.
कोड एक से अमधक पंजीकरण के बजाय एक प्रमर्ष्ठान के मिए एकि पंजीकरण प्रदान करर्ा है । यह एक केंद्रीकृर् डे टाबेस र्ैयार करे गा और व्यापार करने में आसानी मवकमसर् करे गा।
 Appointment letter made Statutory. (मनयुस्कक्त पत्र को वैधामनक बना मदया।)
 Working Hours For Women: Working Hours for Women as per this new proviso female workers/women can work during night shifts with their consent. Also, the time
slot for such night shift shall be from 7 p.m. and before 6 a.m., which shall also be approved by the central or state govt.
ममहिाओं के मिए काम के घंटे :इस नए प्रावधान के अनुसार ममहिाओं के मिए काम के घंटे ममहिा कमतचारी/ममहिाएं उनकी सहममर् से रार् की पािी में काम कर सकर्ी हैं । साथ ही ऐसी नाइट
मिफ्ट का समय िाम 7 बजे से होगा। और सुबह 6 बजे से पहिे, मजसे केंद्र या राज्य सरकार द्वारा भी अनुमोमदर् मकया जाएगा।
 Rights and duties of employees and employers: Rights and duties laid down in the Code for employees too, employees shall take care of their own
health, shall comply with specified safety and health measures, shall report unsafe situations to the inspector.
कमतचाररयों और मनयोक्ताओं के अमधकार और कर्तव्य :कमतचाररयों के मिए भी संमहर्ा में मनधात ररर् अमधकार और कर्तव्य, कमतचारी अपने स्वास्थ्य की दे खभाि करें गे, मनमदत ष्ट सुरक्षा और स्वास्थ्य
उपायों का पािन करें गे, मनरीक्षक को असुरमक्षर् स्कस्थमर्यों की ररपोटत करें गे।
 Offences and Penalties: Under the Code, an offence which leads to the death of an employee will be punishable with imprisonment of up to two years, or
a fine up to five lakh rupee or, both. Further, the court (Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator or an officer of the appropriate
Government or a person authorised to discharge any duty or to exercise any powers under this Code) has been granted a discretionary power wherein,
it may direct that at least 50% of such fine be given as compensation to the heirs of the victim. The Code further states that where no penalty has been
laid down for violation of the provision of the Code by the employer, the employer will be penalised with a fine between two to three lakh rupees. And
where the employee violates any provisions of the Code, he will be subject to a fine of up to Rs. 10,000.
अपराध और दं ड :संमहर्ा के र्हर्, एक अपराध जो मकसी कमत चारी की मृ त्यु की ओर िे जार्ा है , उसे दो साि र्क की कैद या पां च िाख रुपये र्क का जु मात ना या दोनों हो सकर्ा है । इसके अिावा, अदािर्

) मुख्य मनरीक्षक- सह-सुमवधाकर्ात या मनरीक्षक-सह-सुमवधाकर्ात या उपयुक्त सरकार के एक अमधकारी या इस संमहर्ा के र्हर् मकसी भी कर्तव्य का मनवतहन करने या मकसी भी िस्कक्त का प्रयोग करने के मिए
अमधकृर् व्यस्कक्त ) को एक मववेकाधीन िस्कक्त प्रदान की गई है, मजसमें यह मनदे ि दे सकर्ा है मक इस र्रह के जु मात ने का कम से कम12 % पीमड़र् के उत्तरामधकाररयों को मु आवजे के रूप में मदया जाए। संमहर्ा

में आगे कहा गया है मक जहां मनयोक्ता द्वारा संमहर्ा के प्रावधान के उल्रंघन के मिए कोई दं ड मनधात ररर् नहीं मकया गया है, मनयोक्ता को दो से र्ीन िाख रुपये के बीच के जुमात ने से दं मडर् मकया जाएगा। और जहां
कमतचारी संमहर्ा के मकसी भी प्रावधान का उल्रंघन करर्ा है , उस पर 10,000. रुपये र्क का जुमात ना िगाया जाएगा।
Key Changes प्रमुख पररवततन
 The appropriate government for the factory governed by the central government will be central government, including establishment of contractors for the purposes
of such establishment. In other cases the concerned State Government where it is situated.
केंद्र सरकार द्वारा िामसर् कारखाने के मिए उपयुक्त सरकार केंद्र सरकार होगी, मजसमें ऐसी स्थापना के प्रयोजनों के मिए ठे केदारों की स्थापना िाममि है । अन्य मामिों में संबंमधर् राज्य
सरकार जहां यह स्कस्थर् है ।
 The code has also covered Audio visual production' include feature films, non-feature films, television, web-base serials, talk shows, reality
shows etc and under the new definition of Audio Visual- Worker” singer, news reader, dancer, stunt person, technical, artist and work like
supervisory etc has been covered subject to some wages ceiling to be notified by the central government.
कोड में ऑमडयो मवजु अि प्रोडक्शन को भी िाममि मकया गया है मजसमें फीचर मफल्में, गैर-फीचर मफल्में, टे िीमवजन, वेब-बेस सीररयि, टॉक िो, ररयमिटी िो आमद िाममि हैं और ऑमडयो मवजु अि-वकतर
की नई पररभाषा के र्हर् गायक, समाचार वाचक, डां सर, नर्त क, स्टं ट िाममि हैं व्यस्कक्त, र्कनीकी, किाकार और काम जै से पयतवेक्षी आमद को केंद्र सरकार द्वारा अमधसूमचर् की जाने वािी कुछ मजदू री

सीमा के अधीन कवर मकया गया है ।


 The definition of Contract Labour has been modified and includes inter-State migrant worker but excludes part time employee, regularly employed n mutually
accepted standards of the conditions of employment and entitled to Social Security benefits.
संमवदा श्रम की पररभाषा को संिोमधर् मकया गया है और इसमें अंर्रात ज्यीय प्रवासी श्रममक िाममि हैं , िेमकन इसमें अंिकामिक कमतचारी िाममि नहीं है , मनयममर् रूप से मनयोमजर् और रोजगार
की िर्ों के पारस्पररक रूप से स्वीकृर् मानकों और सामामजक सुरक्षा िाभों के हकदार हैं ।
 The new definition of Core Activity provides that activity for which establishment is set-up and other activity like housekeeping, Security, canteen etc not to
be treated as core activity.
कोर गमर्मवमध की नई पररभाषा उस गमर्मवमध को प्रदान करर्ी है मजसके मिए प्रमर्ष्ठान स्थामपर् मकया गया है और अन्य गमर्मवमध जैसे हाउसकीमपंग, सुरक्षा, कैंटीन आमद को मुख्य गमर्मवमध के

रूप में नहीं माना जाना चामहए।


 Principal employer to provide welfare facilities, where the contract labour is deployed.
प्रधान मनयोक्ता कल्याण सुमवधाएं प्रदान करे गा, जहां ठे का श्रममक र्ैनार् हैं ।
 Principal employer shall be liable to make payment of wages to the contract labour deployed by him.
प्रधान मनयोक्ता उसके द्वारा र्ैनार् ठे का श्रममक को मजदू री का भु गर्ान करने के मिए उत्तरदायी होगा।
Key Changes प्रमुख पररवततन
 The work hours for different classes of establishment and employees shall be as per the rules prescribed by central or state government. Further, in relation
to overtime work, an employee shall be paid twice the rate of daily wages. The code in regard to leaves states that no employee shall work for more than 6
days a week, however, an exception has been provided for motor transport workers.
मवमभन्न वगों के प्रमर्ष्ठान और कमत चाररयों के काम के घंटे केंद्र या राज्य सरकार द्वारा मनधात ररर् मनयमों के अनु सार होंगे। इसके अिावा, ओवरटाइम काम के संबंध में, एक कमत चारी को दै मनक मजदू री
की दर से दोगुना भु गर्ान मकया जाएगा। छु मियों के संबंध में कोड में कहा गया है मक कोई भी कमत चारी सिाह में 6 मदन से अमधक काम नहीं करे गा, हािां मक, मोटर पररवहन श्रममकों के मिए एक
अपवाद प्रदान मकया गया है ।
 Definition of “ Employee” has been incorporated and includes person doing any skilled, semi- skilled or unskilled, manual, operational, supervisory, managerial,
administrative, technical or clerical work for hire or reward.
"कमतचारी "की पररभाषा को िाममि मकया गया है और इसमें मकसी भी कुिि, अधत-कुिि या अकुिि, मैनुअि, पररचािन, पयतवेक्षी, प्रबंधकीय, प्रिासमनक, र्कनीकी या मिमपकीय
कायत को भाड़े या पुरिार के मिए करने वािे व्यस्कक्त िाममि हैं ।
 As per new definition of “Employer” 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 would be.
 "मनयोक्ता "की नई पररभाषा के अनुसार, एक व्यस्कक्त जो सीधे या मकसी व्यस्कक्त के माध्यम से या उसकी ओर से, या मकसी व्यस्कक्त की ओर से, अपने प्रमर्ष्ठान में एक या अमधक कमतचाररयों
को मनयुक्त करर्ा है और होगा ।
 Head of the department (मवभाग प्रमुख)
 Occupier of the factory (कारखाने का मामिक)
 Manager of the factory under clause (f) of sub-section (1) of sec 7 of the Factories Act.
कारखाना अमधमनयम की धारा 7 की उप-धारा) 1 (के खंड) एफ (के र्हर् कारखाने के प्रबंधक।
 Owner of the mine, agent or manager.( खान का स्वामी, एजेंट या प्रबंधक)
 The person who, or the authority which has ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager or
managing director, such manager or managing director;
वह व्यस्कक्त, या प्रामधकरण मजसका प्रमर्ष्ठान के मामिों पर अंमर्म मनयंत्रण है और ऐसे प्रबंधक या प्रबंध मनदे िक जहां उक्त मामिे मकसी प्रबंधक या प्रबंध मनदे िक को स प
ं े जार्े हैं ,
 Contractor; and legal representative of a deceased employer.
ठे केदार; और मृर् मनयोक्ता का कानूनी प्रमर्मनमध।
Key Changes प्रमुख पररवततन
 The definition of the “Factory” has been revised under section 2 (w) and threshold limit of employees is now 20 in case of use of power and 40 in case without
power and hasspecifically excludes, hotels, restaurant, eating place, Electronic Data Processing Unit or a Computer Unit etc.
"कारखाना "की पररभाषा को धारा 0 (w (के र्हर् संिोमधर् मकया गया है और मबजिी के उपयोग के मामिे में कमतचाररयों की सीमा अब 02 है और मबजिी के मबना 12 है और मविेष रूप
से
होटि, रे स्तरां , खाने की जगह, इिेक्ट्रॉमनक को बाहर रखा गया है । डाटा प्रोसेमसंग यूमनट या कंप्यूटर यूमनट आमद।
 The definition of "hazardous substance" provides any substance, has potential to cause physical or health hazards to human being, other living creatures Etc.
"खर्रनाक पदाथत "की पररभाषा मकसी भी पदाथत को प्रदान करर्ी है , मजसमें मानव, अन्य जीमवर् प्रामणयों आमद के मिए िारीररक या स्वास्थ्य के मिए खर्रा पैदा करने की क्षमर्ा होर्ी है ।
 A new definition “Industrial premises” provides a premises in which any industry, trade, business etc is being carried on with or without the aid of power includes a godown.
एक नई पररभाषा" औद्योमगक पररसर "एक ऐसा पररसर प्रदान करर्ी है मजसमें कोई भी उद्योग, व्यापार, व्यवसाय आमद मबजिी की सहायर्ा से या उसके मबना मकया जा रहा है , मजसमें एक गोदाम भी
िाममि है ।
 Definition of “Inter State Migrant worker” has been modified and ceiling limit of Rs 18000/- has been introduced.
"अंर्रराज्यीय प्रवासी कामगार" की पररभाषा को संिोमधर् मकया गया है और 18000/- रुपये की अमधकर्म सीमा पेि की गई है ।
 Definition of "machinery" has been inserted includes any article or combination of articles assembled, used or intended to be used for converting any form of energy to
perform work.
"मिीनरी" की पररभाषा को सस्कम्ममिर् मकया गया है मजसमें मकसी भी प्रकार की ऊजात को कायत करने के मिए पररवमर्तर् करने के मिए एकमत्रर्, उपयोग या उपयोग मकए जाने वािे िेखों का संयोजन
िाममि है ।
 Definition of "manufacturing process" has been taken from Factory Act and provides such other processes as the central Government may notified.
"मवमनमात ण प्रमक्रया "की पररभाषा कारखाना अमधमनयम से िी गई है और केंद्र सरकार द्वारा अमधसूमचर् ऐसी अन्य प्रमक्रयाओं को प्रदान करर्ी है ।
Key Changes प्रमुख पररवततन
 Definition of “metro railways” has been added and Metro railways has been treated as railways.
"मेटरो रे िवे "की पररभाषा जोड़ी गई है और मेटरो रे िवे को रे िवे के रूप में माना गया है ।
 Definition of “newspaper establishment” has been drastically changed and has covered all type of establishment carried on by
individual, partners, created firm, body corporate subsidiaries of a common holding company etc.
"समाचार पत्र प्रमर्ष्ठान "की पररभाषा में काफी बदिाव मकया गया है और इसमें सभी प्रकार के प्रमर्ष्ठान िाममि हैं जो व्यस्कक्त, भागीदारों, बनाई गई फमत, एक सामान्य
होस्कडंग कंपनी की मनकाय कॉपोरे ट सहायक कंपमनयों आमद द्वारा मकए जार्े हैं ।
 Definition of the “Occupier” has been amended and instead of clause a, b and c in second proviso, a consolidated definition has been
given.
"अमधभोगी "की पररभाषा में संिोधन मकया गया है और दू सरे परं र्ुक में खंडa , bऔर c के बजाय एक समेमकर् पररभाषा दी गई है ।
 Definition of the “principal employer” has been modified to the extent that the manager has been excluded from the definition of the principal
employer.
"प्रमुख मनयोक्ता "की पररभाषा को इस हद र्क संिोमधर् मकया गया है मक प्रबंधक को प्रधान मनयोक्ता की पररभाषा से बाहर रखा गया है ।
 Definition of the “producer” has been added means a person who is making arrangement for necessary of production is also included.
"मनमात र्ा "की पररभाषा जोड़ी गई है अथातर् उत्पादन की आवश्यक व्यवस्था करने वािा व्यस्कक्त भी िाममि है ।
 Definition of “Sales Promotion Employees” has been revised including a persons in supervisory capacity, managerial, administrative capacity
getting salary up to Rs 18000/- per month or as may be notified by the Central Government from time to time.
 "मबक्री प्रोत्साहन कमतचारी "की पररभाषा को संिोमधर् मकया गया है, मजसमें पयतवेक्षी क्षमर्ा, प्रबंधकीय, प्रिासमनक क्षमर्ा वािे व्यस्कक्त िाममि हैं, मजन्ें प्रमर् माह 18222 / -
रुपये र्क वेर्न ममिर्ा है या जै सा मक केंद्र सरकार द्वारा समय-समय पर अमधसूमचर् मकया जा सकर्ा है ।
 Definition of “worker” has been revised and includes persons in supervisory capacity and working journalists, sales promotion employees getting
salary up to Rs. 18000/- per month or as may be Notified by the Central Government from time to time.

"कायतकर्ात " की पररभाषा को संिोमधर् मकया गया है और इसमें पयतवेक्षी क्षमर्ा वािे व्यस्कक्त और कामकाजी पत्रकार िाममि हैं , मबक्री संवधतन कमतचाररयों को ममि रहा
है 18000 रु प्रमर् माह या जै सा भी हो सकर्ा है । जै सा मक केंद्र सरकार द्वारा समय-समय पर अमधसूमचर् मकया जा सकर्ा है
Labour Code on Social Security Frequently Asked Questions (FAQs)

Q1: What are the lacuna in present day social security system in India?

The biggest lacuna is that it leaves almost 90 percent out of the folds of any social security.
Unorganized sector workers are largely excluded. The schemes have very limited outreach. The
other issue is large scale fragmentation: there are multiplicity of laws, policies, schemes and
agencies. The existing wage and number thresholds creates perverse incentives for the employers
to shy away from joining the system thus resulting in artificial exclusions and distortions in the
labour market.

Q2: How does the proposed code address these issues?

To begin with, the Labour Code on Social Security aims to simplify, rationalize and consolidate
the hitherto fragmented laws into one consolidated law which will be easier in terms of
comprehension, implementation and enforcement. However, what we are proposing goes much
beyond mere amalgamation. We are aiming for universal social security. The code follows a
rights based approach which is very much aligned to the spirit of our Constitution. We believe
that social security is every worker's right.

Q3: The other codes that are being drafted by the ministry are based on the
recommendations of 2nd NCL. What about this code?

The Code also has its inspiration in the Report of the Second National Commission on Labour
(2002) and many other studies and reports on social security policies. We have also drawn our
inspiration from UN SDGs of the 2030 Sustainable Development Goals Agenda. Expert
technical assistance was also obtained from the International Labour Organization also to guide
the policy framework in the right direction.

Q4: What is meant by universalization here?

The Code aims at universalization of Social Security and as such the definition of employee
covers all kinds of employment including a part time worker, casual worker fixed term worker,
piece rate/commission rated worker, informal worker home-based worker, domestic worker and
seasonal worker. The Universalization, however does not mean that all the workers proposed for
coverage under the code would be covered from Day 1, as the code provides the flexibility of
progressive extension of coverage. Those categories of workers who are initially not covered
would be included in Schedule- I Exclusions and this schedule would be gradually pruned to
expand the coverage.
Q5. What is the role of Central Board in Management of Funds?

Under the provisions of the Draft Code, any current surplus in a Fund, if any, is to be transferred
by the State Boards to the Central Board for professional management of investment of the
Scheme Funds. This is to ensure that economies of scale may be utilized to the maximum
possible extent and good return could be fetched on the investment.

The Central Board has been provided the responsibility to manage the investment of the Funds
mentioned above on behalf of the States in accordance with the investment pattern notified by
the Central Government.

The amount so transferred to the Central Board continues to vest in the State Board, and The
Central Board is also obliged to remit to the State Boards, from time to time, such amounts from
the State’s Scheme Fund or Gratuity Fund being managed by it, as may be required by the State
Board to meet the Scheme obligations.

Q6. What is the system of Registration in the Code?

The code requires all (active) workers to be registered under the Universal Registration system
envisaged in the Code. The Registration will be Aadhar based and the Registration protocols will
be decided by the Central Board – for universal applicability and portability of registration.
However, actual registration in the field will be performed by Local Bodies (i.e. Gram
Panchayats / Municipal bodies), under supervision of the State Boards, in order to provide door-
step services. In addition, the Code enables the State Boards to have PPP arrangements to
provide facilitation centers for registration services. The Code also requires State Boards to
conduct proactive surveys of workforce to facilitate registration.

Q7. What is meant by deactivation of workers’ registration?

This provision is intended to cover situations wherein a worker has not engaged in any such form
of work either as an employee or non-employee wherein he falls within the provisions of this
code and as such no contribution is payable by or on behalf of such person for that period. The
minimum period for which a person needs to work in a particular year to entitle him to be
classified as a worker and avail benefits under this code is to be decided by the National Council.
The code does intend to cover all the workers but the intention of this provision is to ensure that
only such persons who work for a minimum period as specified would be classified as workers.
Any period wherein the worker is out of work on account of employment injury, sickness or
maternity is considered as work and the provisions of deactivation do not apply to such cases.

Q8. What happens if the employer fails at their obligation to register the worker?

As such, the obligation to register a worker falls on the employer, except for own-account
worker, who needs to register himself. The Draft code prescribes penalties for employing an
unregistered worker beyond a specified period. However, if the employer fails to register the
worker within the specified time period, the worker has been provided with the facility of
registering himself under the provisions of the code.
Q9. Why does the Code specify categorization of workers upon registration?

The funding of social security under the Code is a combination of Employer / employee funded
and Taxpayer funded. For workers belonging to poorest socio-economic category, the draft Code
envisages the Social Security be taxpayer funded. Therefore, there is a need to scientifically
classify and identify such workers who belong to poorest socio-economic category. The Code
envisages a system of classification of workers based upon socio-economic parameters that will
be scientifically designed and notified in the Rules. Workers, at the time of registration will
provide data (about their socio-economic parameters) and based on this, the categorization will
be automatically determined.

Q10: Do you think that poor class of workers will be able to afford the contribution for
social security?

Under this code, Social Security benefits are a funded by a combined system of State (taxpayer)
funding, employer funding and worker funding. The code therefore proposes following structure
for contribution:

➢ If a worker is an employee/non- employee belonging to Socio Economic Category-IV,


the rate of contribution would be NIL. The Contribution in respect of such workers
would be paid by the Government and routed through the Contribution Augmentation
Fund(s).
➢ If the worker is an employee not belonging to Socio Economic Category-IV, the rate of
Contribution would be 12.5 percent of wage or wage ceiling whichever is lower.
➢ If the worker is a non-employee belonging to Socio Economic Category III the rate of
contribution would be 20 percent of national minimum wage notified by the Central
Government.
➢ If the worker is a non-employee belonging to Socio Economic Category I or Socio
Economic Category II, the rate of contribution shall be –

20 percent of the higher of

(i) monthly income or wage ceiling whichever is lower, or


(ii) national minimum wage notified by the Central Government,

Therefore, workers belonging weaker socio-economic status are provided social security through
tax-payer funded system. Remaining workers, who themselves (or wih their employers) can
afford to pay for their social security, shall make contributions, from which, the social security
benefits shall be provided.

Q11: What is the rate of employers’ contribution? Is the contribution linked to the nature
of industry or OSH Standards?

➢ Employers contribution: - Maximum 17.5 percent of wage for Social Security Fund and
2 percent of wage for Gratuity Fund.
➢ Upon Registration, the establishments are classified in four categories based upon OSH
standards of the establishments, based upon parameters that will be determined in
Rules. This is done to empower the government to collect differential contribution on
the basis of OSH standards. This will improve OSH compliance in establishments as
there will be a financial incentive for higher OSH standard.
➢ If cess is levied on any particular industry, the Central Government may reduce or
waive the employer’s contribution so as to avoid the burden of double taxation.

Q12. Have you ensured adequate representation of vulnerable categories such as


unorganized workers, own account workers, pensioners and women in Social Security
Organizations?

To ensure that the voice of vulnerable sections is heard, the representatives of organizations of
unorganized workers and own account workers has been provided assured representation in the
National Council, Central Board and State Board. The representative of Pensioner organizations
have also been provided assured representation in both Central as well as State Boards.
Reservation for women has been provided in all three bodies i.e. National Council, Central
Board and State Board.

Q13: Is it true that the new code proposes decentralization of administrative set up?

We must realize that the code is envisaging an approximately ten times increase in coverage and
most of it comes from unorganized sector. Managing such large number of beneficiaries and also
ensuring that services can be made available as near to them as possible, decentralized set up has
been envisaged. What we have proposed is again very much as per the recommendation of 2nd
NCL. Also we are strictly following a tripartite approach. A three tier Social Security
Administration Structure proposed with tripartite representation in all these bodies drawing
representatives of workers, employers and Government. (a) National Social Security Council
headed by the Prime Minister to be the Apex Social Security Organization in the Country for
overall regulation and monitoring; (b) Central Board of Social Security at Union level and (c)
State Board(s) of Social Security at State/UT level for implementation of the Social Security
framework. In addition functions have been prescribed for local bodies (panchayats / urban local
bodies) of registrations and facilitation.

Q14: What would become of the present set ups like EPFO, ESIC, DGLW run welfare
funds and other mechanisms?

There are presently 15 laws which govern social security for the worker. Once the Code comes
into force, these laws will be obsolete. Also the comprehensive social security structure created
through this code will replace the entire present setup which means that EPFO and ESIC will
cease to exist in the present forms. However, they would cease in only those states where the
new set up has been notified and would continue as such in the remaining areas. The code also
proposes how the present staff of these organizations will absorbed into the new set up.
Q15: How do you propose to ensure that there are no free riders on the taxpayers’ money?

The Code proposes a Unique Aadhar Based Registration system for all workers through Local
Bodies, compulsory registration for all categories of workers. We propose to have an asset based
criteria for classification of the workers, the illustrative parameters of which have been
prescribed in the code. A Portable Social Security Account i.e. Vishwakarma Karmik Suraksha
Khata (VIKAS) to be opened for all workers on registration which shall be linked to the Aadhar
number of the worker. VIKAS will ensure portability i.e. Remittance of the accumulated
contribution in case a subscriber moves to another state available to the workers. The code also
proposes Compulsory registration of entities and establishments. However, for own account
enterprises and households much simpler registration and compliance requirements have been
envisaged.

Q16: What are the broad contours of Social security that are covered in this code?

The code derives its understanding of Social Security from the fundamental ILO Convention
C102 on social security. (Attached as an appendix to the code). It covers all the 9 types of social
security covers described in the Convention. Social Security Fund in each State is to provide for
schemes such as Pension, Sickness Benefit, Maternity Benefit, Disablement Benefit, Invalidity
Benefit, Dependent’s benefit, Medical Benefit, Group Insurance Benefit, Provident Fund,
Unemployment Benefit and International worker’s pension benefit. However, it may not be taken
that code proposes to provide each of these to every worker from the day 1. We will have to
work in a phased manner given our budgetary constraints.

Q17: There is a tendency amongst the employers to evade the system when it comes to
labour laws. The thresholds in any law create an artificial ceiling. You also talked about the
perverse incentives. How does the code address this issue?

We take inspiration from 2nd NCL and the Expert advice from ILO. In the Code, Employer’s
Liability has been replaced by Fund Liability for Gratuity, Maternity Benefit and
death/disablement compensation. Liability of employer arises only where he neglects to pay the
contribution in respect of a worker or the worker does not complete the qualifying service for
entitlement of dependent or disablement benefit. An employee shall be deemed to have been in
continuous service of the Principal Employer for the purpose of Gratuity entitlement so long as
he has served continuously for the same Principal Employer, whether or not through same or
different contractors. Contribution Augmentation funds are established through which
governments can contribute to the social security in respect of workers who are unable to pay
contribution.

The other perverse incentives come from non-coverage of certain category of workers, employee
number threshold and wage ceilings. Employers have been found to be circumventing the
provisions by way of wrong categorization, underreporting of number of workers or over-
reporting of their wages. Unfortunately, despite the best efforts of enforcement officers such
cases keep coming to notice after considerable time has elapsed and social security rights of the
workers have been denied. The proposed set up where all categories of workers and all
categories of establishments without any reference to the number of workers or their income will
be covered adequately addresses the above challenges.

Q18: Are there any exemptions?

There are no exemptions. Schedule – I has been provided to specify class of workers /
establishments that are excluded from certain provisions of the Code. This exclusion will be
applicable only to such workers who can avail normal / regular security available to government
servants (e.g. workers on whom CCS Pension Rules apply). Further, This Schedule – I can also
be used for gradual phase-wise implementation of the Code.

For Employers who can provide PF and Gratuity system managed by their own, there are
provisions for permission for Alternate Coverage Mechanism. This will be permitted only for
establishment employing >= 100 workers. Audit of Accounts of Social Security Organizations is
provided in the code by the C&AG of India and laying of Annual Report before the appropriate
legislature. Provision has also been kept for Social Audits of the schemes once every five years.
Even the exempted Establishments can be audited by CAG if it so feels.

Q19: There is this issue of a huge sum of unclaimed amounts in EPFO as on today. When
we expand the coverage so much, the problem may become many fold. How does the code
propose to tackle this?

First of all, given the kind of Aadhar based universal registration that the Code envisages, we
will not be faced with a large number of missing workers. However, the code proposes for
confiscation of unclaimed amounts and credit of the same to National Stabilization Fund, if no
claimant could be found even after inviting claims and objections in respect of such amounts. It
is pertinent to mention that presently there is no such provision for inviting claims and objections
in respect of unclaimed amounts and they mostly continue to remain in suspense accounts for
unduly long periods of time.

Q20: How does the Code ensure that worker is not denied of his due under any
circumstances?

Every worker shall have the right of coverage under the Social Security System provided under
this code. Social Security to be the right of each and every worker rather than a goodwill gesture
or appeasement. That is why the code proposes a Rights based benefit system, i.e., allowing the
payment of benefits from the Fund to a person who becomes disentitled to any benefit due to him
on account of Employer’s negligence and subsequent recovery of the same from the defaulting
employer. There is a provision for complaint by worker/ registered trade union/association of
workers to the Samajik Suraksha Mitra in case of denial of coverage/failure by employer to
deposit contribution/denial of benefit or compensation/non-provision of any entitled service or
benefit. The Code prescribes for awarding Compensation to the worker by the Commissioner out
of the Reparation Fund, over and above the benefit he is entitled to, for deficiency in providing
the entitled service to the worker. The Code also gives a detailed grievance redresses mechanism
as well.
Q21. Why have you proposed such an exhaustive list of definitions in the Code?

Exhaustive definitions leave lesser flexibility of diverse interpretations and therefore uniformity
of understanding and implementation across the nation. This may lead to difficulty in
enforcement and inadequate coverage as well. Moreover, diverse interpretations also means
ambiguity and grey areas which are cleared only after unnecessary judicial interventions. All
these challenges are addressed if definitions are exhaustive and comprehensive.

Q22. How does the code ensure the accountability and transparency in the functioning of
the Social Security Organizations?

The Code envisages few innovative and new approaches to ensure a transparent and fair financial
set up. These include:

(i) Accounts of Intermediate Agencies to be subject to CAG Audit on the same lines as that of
Social Security Organizations.

(ii) Time bound preparation of Accounts within six months of the end of the financial year.

(iii) Provision for social audit of social security schemes by State Boards in every five years by
agencies empaneled by the Central Board. Since the social security mechanism envisaged in the
code operates at various levels including that of local bodies’ level, social audit may help in
creating sense of ownership amongst the subscribers specially in the lower socio-economic
workers strata whose contribution will be subsidized from the Government fund which will help
in identifying the corrective measures right at the ground level.

Q23. What is the difference between the terms Entity, Establishments and Enterprise?

Entity’ is a much broader term which includes the entire spectrum of units (wherein work is done
by persons) irrespective of the nature and quantum of work. Enterprise and households are sub-
set of the larger universe i.e. Entity. This differentiation has been provided for in the Draft to
distinguish between the enterprises which engage work for any economic activity and
households who engage work for domestic requirements. Further ‘enterprise’ may or may not
employ any worker whereas ‘Establishments’ are the ones that employ at least one worker.

Q24. Why have you defined separately terms such as factory, business, project etc.?

The different terms such as business, factory, project etc. have been specifically defined to
ensure that all kinds of employees get coverage under the code and there is no room for the
employer to use any possible gap or loophole to avoid coverage under the provisions of the code.
The term ‘business’ has been used to specify the kind of activity the ‘enterprise’ undertakes –
such as manufacturing, agriculture etc. The term enterprise also include the units in which an
own account worker works. Households are also included in the term ‘entities’ and ‘employer’
and thus, as such (if not specifically excluded through an entry in Schedule-I) the code applies to
households and domestic workers as well.
Q25. Why have you used two different terms i.e. wage ceiling and income threshold.

There are two cut-offs (in respect of wage/income) defined. ‘Income Threshold’ and ‘wage
ceiling’. The term ‘wage ceiling’ is for the purpose of determining a maximum limit on
contribution payable. On the other hand, the term ‘income threshold’ (which will be somewhere
between minimum wage and income ceiling) is just used once in the code, and that too in an
illustration, - is for the purpose of enabling the government to provide for two different kind of
schemes (for same purpose) for two different class of workers. One may be subsidised while the
other may not.

There is another threshold – in terms of Number of employee working under an establishment. It


is used to define organized and un-organized sector. Although the Code applies to all sectors
(organized or un-organized), this distinction has been kept for the purpose of eligibility of
gratuity.

Q26. Would it be possible to achieve the desired co-ordination between different ministries
of the central government and also between Centre and States?

The National Council, headed by the Prime Minister and composed of Ministers of Finance,
Health and also Chief Ministers/ Administrators of all States/Union Territories apart from
workers and employers is envisaged as the apex body to bring out harmonious co-ordination
amongst different ministries and also at the Centre-State level. The National Council has been
proposed on similar lines to the Goods and Service Tax (GST Council) which has been able to
successfully roll out the GST Regime in India.

Q27. Why a need was felt for a separate category of special registered person?

It is understood that in-spite of our best efforts to cover all the workers under Registration fold
(and consequently within the scope of social security schemes) there will be persons who are left
out. This will specially be true in case of persons who are old and infirm at the time of
application of Code and cannot be taken into fold of a contributory system. For such persons, the
Code envisages (state government funded) social assistance programme, and for that purpose
there is a concept of ‘Special Registration’ of such persons.

Q28. How would the Reparation Fund be financed?

Reparation fund would be financed from the penalties/damages recovered in the course of
enforcement of the code and the recoveries made from the employers in respect of benefits paid
to the employees in pursuance of section 28 of the Draft Code, as these would be compulsorily
credited to the Reparation Fund in accordance with the provisions of the code and can be used
for certain declared purposes only, including the payment of compensation to the worker for
non-provision of service/deficiency in service.

Q29. What is the purpose of Contribution Augmentation Funds?


The code empowers the Central Government or the State Government to establish contribution
augmentation fund as deemed necessary by the Central or State Government, as the case may be.
The contribution augmentation fund would be administered by the respective State Board. The
State Boards are empowered to credit to the state Social Security Fund from the State
contributions on behalf of workers by general or special orders. This amount credited to the State
Social Security Fund would then be credited to the VIKAS of the beneficiary workers by the
State Board in consultation with the State Advisory Committees.

Q30. What is the purpose of creating National Stabilization Fund?

The code provides for establishing a National Stabilization fund which will be used for
harmonizing the Scheme Funds across the country. National Stabilization Fund will be managed
by the Central Boards. Any actuarial surpluses in any scheme or unclaimed amounts will be
credited to the National Stabilization Fund, and it will be used if any state’s scheme fund falls in
distress. It can used for providing loans or grants to State Boards in case of deficit found in any
scheme after actuarial evaluation.

Q31. Most of the Cess Acts have been abolished. Why have you kept the provision of
levying cess in the code?

This Part specifically provides for a levy of Building and Construction Cess, on all construction
works above a certain threshold. This is for the protection of Building & Construction workers,
as generally it is found that these workers are not engaged in formal employment relationship
basis. Further, the Code also provides for a general power of Central Government to levy Cess
on other products and services. As such, the provision of Cess has been kept only as an alternate
mechanism to collect contributions (of employers / employees). The Government does not intend
to levy cess on any sector, as the normal Employer’s and Employee Contribution levied under
Part D should be sufficient to meet the Social Security requirement. However, it is understood
that certain sectors are very prone to informality, due to which number of employees are not
declared by the employers, leading to their exclusions from social security. In order to handle
such sectors, the powers to levy cess has been kept, so that in sectors where employers are
escaping their obligations, the concerned workers can be protected by levy of cess, and providing
their contribution from this collection of cess.

Q32. What flexibility has been provided to households/own account workers in registration
and in payment of contributions?

An own account enterprise at the time of registration of the own account worker himself, would
have to furnish the necessary particulars of his enterprise based on which it would be registered.
No separate registration application is required. As far as households are concerned, the
furnishing of the first return cum challan by the Household along with such particulars as may be
prescribed would be sufficient evidence that he has complied with the registration requirements.

Contributions are to be paid on monthly basis; However, for simpler compliance provision,
households (employing domestic workers) can pay consolidated contribution for quarter,
semester etc. Own account workers too have to pay contributions on monthly basis, however,
they too have option to pay consolidated contributions.

Q33. How would the administrative charges be worked out?

Administrative Charges are to be paid by the employers. The manner of calculation of


contribution has been changed slightly as compared to EPF system. Instead of certain percentage
of wage, the Administrative charges shall be certain percentage (less than 4%) of contribution. In
case of State (i.e. government) contribution, same administrative charges will be deducted from
the government’s contribution.

Q34. Would 2 percent of wages contributed to Gratuity Fund be sufficient for meeting
gratuity liability?

We understand that it may not be possible to meet the Gratuity liability in respect of all
employees through the proposed contribution that is 2 percent of the wages. However, it has
been kept low to avoid hardship to the employers. Monthly contribution of the employer will be
collected by the State Board to be credited to the individual account of the employer in the State
Gratuity Fund. Thus, the State Gratuity Fund will comprise of accumulation of contribution of
individual employer, which would not be a pooled fund. It has been envisaged to make employer
compulsorily save for payment of gratuity, whenever required so as to ease burden on employer
at the last of moment, when gratuity is to be paid.

If funds are available in the Employer’s Gratuity Fund, and any employee of the said employer
becomes entitled to gratuity, the Commissioner, shall release the said gratuity amount due to the
employee from the amount standing in the Credit of the employer in the State Gratuity Fund. If
sufficient amount is not available in the gratuity fund account of the employer, the
Commissioner shall direct the employer to pay the gratuity to the employee from his own funds
within 15 days. Therefore, in the proposed scheme of things, the maximum period for payment
of gratuity has been enhanced to 60 days.

Q35. What is the rationale behind a comprehensive chapter on Pension integrating death,
disability and retirement benefits?

The rationale behind this is to provide comprehensive coverage to the workers throughout their
active service life and a guarantee of old age, disability or dependent pension. Further, this part
does not distinguish between death/disablement due to employment injury or otherwise as for a
worker and his family, occurrence of such a contingency brings a lot of grief and mostly, where
the worker is the sole breadwinner, his death or disability pushes the entire family into scarcity.
Thus, by making a provision for pension through the pension schemes as may be instituted, it
provides an income security to the worker and his family in times of distress.

The benefits to the workers are guaranteed and if any employee becomes disentitled from
availing benefits under the Pension Scheme on account of non-coverage by the employer, the
benefits are to be paid by the Commissioner in the first instance and subsequent recovery to be
made from the employer in accordance with section 28 of the code.
Q36. What happens if the resources of a State Board face a shortfall in meeting the
expenditure of sickness benefit?

The State Governments are expected to meet the incidence of Sickness Benefit if it is in excess
of subscriptions received. In case of shortfall, the Central Government may step in to cover the
deficit on justified/bonafide grounds.

Q37. Is it true that the code promotes large scale privatization of social security system?

What we have done is we have made a provision for licensing of Intermediate Agencies in the
fields of Fund Management, Point of Presence, Service delivery, Benefit disbursement, Record
keeping and Facilitation for enabling PPP system in administering social security. These
agencies are to be agents of the Board to deliver certain services. The ultimate liability and
responsibility of providing the services / benefits remains that of the Boards. We have also kept a
provision for appointing a nominee director in the governing body of the Intermediate Agency.
Adequate safeguards for exercising control over Intermediate Agencies for protecting the interest
of subscribers (including the suppression of the Governing Board of the intermediate agency, if
necessary). The appointment or otherwise of the Intermediate Agencies depends upon the
requirement of the respective State Board and is not compulsory.

Q38. What are the appellate provisions in the Code?

The code prescribes detailed grievance redress mechanisms to make social security a right of
each and every worker. Where the beneficiary is aggrieved by the action taken (or non action) on
his complaint made to the Samajik Suraksha Mitra, the first level appeal can be filed to the
departmental appellate officer. Similarly, in the cases where the employer is aggrieved by the
orders passed by the assessing officer, an appeal lies to the appellate officer. The first appellate
officer also hears appeals against other orders of the authorities (under the code) such as orders
related to registration (or denial thereof), orders relating to entitlement of gratuity, confiscation
of unclaimed amounts etc. He also has been given role of determining certain questions and
disputes, such as whether any person will be treated as employee or not, whether any entity is
principal employer or not, etc.

There is no condition for pre-deposit of (disputed) assessed amount before entertainment of


appeal before the (first level) Appellate officers. However, admitted amount has to be paid
before entertainment of appeal. This will enable easy resolution of employers’ disputes.

The Assessing officer / Appellate officer has powers to levy damages for wilful default or delay
of payment of contributions and dues.

Second Appeal (against the orders of Appellate officer) is to the Tribunal formed under this
code. For entertainment of (second) Appeal, the appellant has to deposit such amount as may be
determined by the Tribunal. Tribunal also directly hears appeals on the decisions of Medical
Boards, and matters relating to Commissioner’s actions against the Intermediate Agencies.

Subsequent Appeal (on question of law) is to the concerned High Court.


Q39. What was the need of including provision of Community Service Order?

We believe that any person committing an offence with regard to social security legislation, does
not commit an offence against an individual, but against the society as a whole thereby putting
the entire social security system in jeopardy and as such should be reformed against committing
such acts in future. As such, the code provides for Community service order to undertake unpaid
work as directed by the court, in cases where the punishment for the offence committed is not
more than two years of imprisonment and the court considers it a fit case for awarding the
Community service order.

Q40. What is meant by prescribed, stipulated and by-laws with respect to the Code?

The power of drafting the subordinate legislations under different sections of the code have been
bestowed on the Central Government, National Council and the Central Board respectively based
on their relative functions. These subordinate legislations have been grouped under three
categories i.e. Rules, Regulations and by-laws respectively.

The words ‘prescribed’ and ‘stipulated’ is used for shortening the phrases as other-wise it would
have read “as may be prescribed by the rules made by Central Government” or “as may be
prescribed by the Regulations made by the National Council” etc.

The hierarchy we have used is-

”Prescribed” means prescribed by rules made by the central government (unless otherwise
specified) under this Code. The Central Government has the power to make rules, after
consultation with the National Council and subject to the condition of previous publication for
the purpose of giving effect to the provisions of the code.

“Stipulated” means specified by the regulations made by the National Council, which may make
regulations for any matter relating or incidental to regulating the social security Schemes and
their implementation in India.

“by-laws” means the by-laws framed by the Central Board under Section 166. These basically
relate to procedural matters such as records, returns, proceedings etc.

In addition, if rules are to be made by the State Government on any subject, the same has been
specifically provided in the respective provisions.

Q41. What is the relation between the medical benefits proposed in the code and medical
care provided by the Central/State Governments?

Presently, unorganized sector workers who are not covered through social security legislation
and as such the Central/State Government provides them medical facilities through their
Healthcare Set-up such as Primary Health Centers, Dispensaries and Hospitals.
After the medical benefit/insurance under this code is universalized, this existing health set up
may get integrated into the medical benefit scheme proposed under the code and the same would
be strengthened due to inflow of funds through contributions and welfare funds where necessary.
However, as we are aiming towards progressive implementation of universal social security, the
healthcare provided by Central Ministry of health and family welfare and for that matter also by
State Governments or local bodies would remain relevant till such time the integration of such
facilities with the Code is attained, which again is a gradual process.

Q42. Who would collect the Building and Other Construction workers’ cess?

The Cess shall be collected by the local authority or the State Government and proceeds of the
Cess shall further be transferred to the State Government after deducting collection charges, if
any. The BOCW Welfare Cess Act, 1996 also provides for the levy and collection of BOCW
Cess in above mentioned manner. The municipal bodies can collect Cess at the time of passing
of Plans.

Q43 It is good practice to ensure that safeguards are in place for the protection of privacy
of personal data. Has the same been provided for in the Code?

The Code ensures confidentiality of returns etc. No person can intentionally disclose, transmit,
copy or otherwise disseminate any information collected in the course of implementing the
provisions of this Code, to any person not authorized under this Code. Similarly Code prohibits
unauthorized access, download, stealing, tampering or destroying of the data of any Social
Security Organization (SSO).

Chapter F of the code classifies as “confidential” the data and information produced during the
implementation of this Code and lays down the exceptions where this restriction of
confidentiality shall not apply to the Governments, their agencies and the Courts.

Q44 Given that contracted work is currently characterized by low coverage, the
institutional arrangement for the coverage of contracted workers needs to be such as to
incentivize their affiliation and coverage.

The concept of Contribution deduction at source (CDS) has been kept for incentivizing coverage
or workers in the course of works contract. The Concept of CDS is to prevent tax avoidance/
evasion.

The Idea behind CDS is taken from TDS system in case of income tax. Here, in case of works
contract, the Employer is the person executing the works contract, and he, in any-case is liable
for covering his employees in the SS system. However, to prevent avoidance, it is proposed that
the person awarding the works contract will do a fixed deduction from the payment to be made
to the works contractor, deposit it in the SS Fund (it will go into a suspense account) as CDS and
give a certificate to the works contractor. This certificate is like a ‘credit note’ with the
Contractor and he can use it when he files his returns. (When the works contractor files return,
the amount credited in the suspense account will get settled to the concerned workers’ SS
Account).The CDS is to be undertaken in all circumstances when a works contract is awarded.
Q45. What would happen to the existing beneficiaries under ESIC/EPFO who have been
sanctioned certain benefits under the respective schemes?

The beneficiaries under the ceased schemes shall be entitled to draw the benefits, not less than
the benefits that was sanctioned to them under the ceased schemes and the successor boards shall
be liable to bear the financial liabilities created by the decisions taken by predecessor
organizations.

Q46. Whether the existing exemptions granted under ESIC and EPFO would continue?

Any Exemption granted under section 17 of Employees’ Provident Fund Act 1952 or Section 87
or 88 of Employees’ State Insurance Corporation Act 1948 shall deemed to be a permission to
operate Alternate Coverage Mechanism granted under this Code from the corresponding
Scheme(s) under this Code for a period until –

(a) Validity of the Exemption so granted expires, or

(b) one year from the commencement of applicability of this Code, whichever is earlier.
LabourCodeonSocialSecurityFrequentlyAskedQuestions
(FAQs)

प्रश्न 1: भारत में वततमान सामाजजक सुरक्षा व्यवस्था में जनजित कजमयााँ क्या िैं?

सबसे बड़ी कमी यि िै फक यि 90% से अजधक श्रजमकों को फकसी भी सामाजजक सुरक्षा के दायरे के
बािर रखती िै। असंगठित क्षेत्र के कमी काफी िद तक इस व्यवस्था से बािर िी िैं। योजनाओाँ की पहाँि बहत
सीजमत िै। दूसरा मुद्दा िै बड़े पैमाने पर जवखण्डन – यिााँ कानून, नीजतयों, योजनाओं और एजेंजसयों की बहलता
िै। वततमान वेतन सीमा और कमतिारी संख्या सीमा– जनयोक्ताओं के जलए व्यवस्था प्रणाली से न जुड़ने के कई
जवकृ त प्रोत्सािन के अवसर प्रदान करते िैं जजसके पठरणामस्वरूप श्रम बाजार में बनावटी बजिष्करण एवं
जवरूपण की पठरजस्थजत उत्पन्न िोती िै।

प्रश्न 2: संजिता इन मुद्दों को फकस तरि सुलझाने का प्रस्ताव करता िै?

पिले पिल, सामाजजक सुरक्षा पर श्रम संजिता का लक्ष्य िै अब तक के जवखजण्डत कानूनों को संयुक्त
कानून के रूप में सरलीकृ त, युजक्तसंगत तथा समेफकत करना जो समझने, कायातजन्वत करने और लागू करने में
अजधक आसान िो। फफर भी, जो िम प्रस्ताजवत कर रिे िैं, वि के वल जमश्रण एवं एकीकरण के परे िै। िमारा
लक्ष्य िै सावतभौजमक सामाजजक सुरक्षा। यि संजिता एक ऐसे दृजिकोण का अनुगमन करता िै जो अजधकारों पर
आधाठरत िै और जो िमारे संजवधान की भावना के अनुरूप िै। िमारा मानना िै फक सामाजजक सुरक्षा प्रत्येक
श्रजमक का अजधकार िै।

प्रश्न 3: मंत्रालय द्वारा ड्राफ्ट फकए जा रिे अन्य संजिता दूसरे एनसीएल की जसफाठरिों पर आधाठरत िै। यि
संजिता फकस पर आधाठरत िै

यि संजिता श्रम पर दूसरे राष्ट्रीय आयोग (2002) की ठरपोटत और सामाजजक सुरक्षा नीजतयों पर फकए
गए अन्य अध्ययनों एवं ठरपोटों से प्रेरणा प्राप्त करता िै। िमने संयुक्त राष्ट्र की 2030 सतत जवकास लक्ष्य
कायतसूिी की एसडीजी (SDGs ) से भी प्रेरणा प्राप्त की िै। इस नीजत के ढांिे को सिी फदिा में ले जाने िेतु
अंतरातष्ट्रीय श्रम संगिन की जविेषज्ञ तकनीकी सिायता भी ली गई िै।

प्रश्न 4: यिां सावतभौमीकरण से क्या तात्पयत िै?

इस संजिता का लक्ष्य िै सामाजजक सुरक्षा और इसीजलए कमतिारी की पठरभाषा में िर प्रकार का


रोज़गार, जजसमें अंिकाजलक श्रजमक, आम मजदूर, जनजित अवजध श्रजमक, टुकड़ा दर/कजमिन दर श्रजमक,
अनौपिाठरक कामगार, घर आधाठरत कामगार, घरे लू कायत करने वाला और मौसमी कामगार सजममजलत िैं।
तथाजप, सावतभौमीकरण का यि मतलब निीं िै फक इस संजिता के अंतगतत कवर करने िेतु प्रस्ताजवत श्रजमक
पिले फदन से कवर िो जाएाँग,े क्योंफक यि संजिता प्रगजतिील जवस्तार की सुजवधा मुिय ै ा कराता िै। ऐसे श्रजमक
वगत जो प्रारं भ में कवर निीं िैं, उन्िें अनुसूिी-। बजिष्करण में िाजमल फकया जाएगा और इस अनुसूिी को िनैैः
िनैैः छााँटते हए कवरे ज को जवस्तृत फकया जाएगा।

प्रश्न 5: जनजध के प्रबंधन में के न्रीय बोडत की भूजमका क्या िै?

ड्राफ्ट संजिता के प्रावधानों के अधीन, फकसी भी जनजध के वततमान अजधिेष को, यफद िो तो, योजना
जनजध के जनवेि के व्यावसाजयक प्रबंधन िेतु राज्य बोडत द्वारा के न्रीय बोडत को अंतठरत फकया जाना िाजिए।
इससे यि सुजनजित फकया जा सकता िै फक बड़े तादाद की अथतव्यवस्था से िोने वाले जितलाभ का यथासंभव
ज़्यादा से ज़्यादा उपयोग फकया जा सके तथा जनवेि पर अच्छा ठरटनत प्राप्त फकया जा सके ।

के न्रीय बोडत को यि जजममेदारी दी गई िै फक वि के न्र सरकार द्वारा अजधसूजित जनवेि स्वरूप के


अनुसार उपयुतक्त जनजध के जनवेि का प्रबंधन करें ।

इस प्रकार के न्रीय बोडत को अंतठरत राजि राज्य बोडत में िी जनजित रिेगी, और के न्रीय बोडत, समय समय पर
अपने द्वारा प्रबंधन फकए जा रिे राज्य योजना जनजध अथवा ग्रेच्युटी जनजध से उतनी िी राजि राज्य बोडत को
प्रेजषत करने को बाध्य िै जजतनी फक योजना कततव्यों को पूरा करने के जलए राज्य बोडत को ज़रूरत िो।

प्रश्न 6: संजिता के अंतगतत पंजीकरण करने की प्रणाली क्या िै?

संजिता में पठरकजपपत सावतभौजमक पंजीकरण प्रणाली के अधीन सभी (सफिय) श्रजमकों का अजनवायत
पंजीकरण प्रस्ताजवत िै। पंजीकरण आधार नमबर- आधाठरत िोगा तथा पंजीकरण को सावतभौजमक लागू करने
एवं पोटेजबजलटी िेतु - पंजीकरण प्रोटोकॉल पर जनणतय के न्रीय बोडत द्वारा जलए जाएाँगे। फफर भी, क्षेत्र का
वास्तजवक पंजीकरण स्थानीय जनकायों (जैसे ग्राम पंिायत, मयुजनजसपल जनकाय) जो राज्य बोडत की पठरवीक्षा में
िोंगे, द्वारा फकये जाएंगे ताफक श्रजमकों के यथासमभव समीप सेवाएाँ उपलब्ध कराई जा सके । साथ िी, यि
संजिता राज्य बोडत को यि अजधकार देता िै फक वे पंजीकरण सेवाएाँ िेतु सिायता के न्र उपलब्ध कराने के जलए
सरकारी-जनजी कं पनी भागीदारी व्यवस्था (पीपीपी) स्थाजपत कर सके । इस संजिता की यि भी आवश्यकता िै
फक राज्य बोडत पंजीकरण को आसान बनाने के जलए श्रमबल का सफिय सवेक्षण आयोजजत करें ।

प्रश्न 7: श्रजमकों के पंजीकरण को जनजष्िय िोने से क्या तात्पयत िै?

यि प्रावधान ऐसी जस्थजतयों का ध्यान रखने के उद्देश्य से बनाया गया िै जिााँ कोई श्रजमक इस संजिता
के प्रावधानों के अधीन आने वाले फकसी काम में निीं लगा हआ िै और इसीजलए उस व्यजक्त की ओर से उस
अवजध के जलए कोई अंिदान देय़ निीं िै। श्रजमक के रूप में श्रेणीबद्ध फकए जाने िेतु फकसी वषत जविेष में एक
व्यजक्त को फकतना न्यूनतम समय काम करना िोगा, जजससे वि इस संजिता के अंतगतत जितलाभ प्राप्त कर
सके गा, इसका जनधातरण के न्रीय पठरषद द्वारा फकया जाएगा। इस संजिता का उद्देश्य सभी श्रजमकों को कवर
करना िै, परं तु इस प्रावधान का उद्देश्य यि सुजनजित करना िै फक के वल ऐसे व्यजक्त िी श्रजमक के रूप में
श्रेणीबद्ध फकए जाए जजन्िोंने यथाजनर्दति न्यूनतम अवजध तक काम फकया िो। ऐसी कोई भी अवजध जजसके
दौरान श्रजमक, रोजगार से संबंजधत िोट, रोग/अस्वस्थता अथवा प्रसूजत के कारण बेकार िो/काम न करता िो,
को भी काम की अवजध माना जाएगा और ऐसे मामलों में पंजीकरण जनजष्िय िोने के प्रावधान लागू निीं िोते।

प्रश्न 8: यफद जनयोक्ता श्रजमक को पंजीकृ त करने में जवफल रिे तो इसका क्या पठरणाम िोगा?

वैसे तो के वल स्वजनयोजजत श्रजमक को छोड़कर, जजसे स्वयं पंजीकृ त िोना िोता िै, श्रजमक को पंजीकृ त
करने का कततव्य जनयोक्ता का िै। ड्राफ्ट संजिता में एक जनर्दति अवजध के पिात अपंजीकृ त श्रजमक को जनयुक्त
करने पर दण्ड जनधातठरत िै। तथाजप, यफद एक जनर्दति समयावजध के भीतर यफद जनयोक्ता फकसी श्रजमक का
पंजीकरण करने में जवफल रिा, तो संजिता के प्रावधानों के अधीन श्रजमक खुद िी अपना पंजीकरण करवा सकता
िै।

प्रश्न 9: संजिता में पंजीकृ त श्रजमकों के श्रेणीकरण का प्रावधान क्यों िै?

इस संजिता के अधीन सामाजजक सुरक्षा का जवत्त पोषण, जनयोक्ता/कमतिारी द्वारा जवत्त पोजषत और
करदाता द्वारा जवत्त पोजषत का मेल िै। सबसे गरीब सामाजजक-आर्थतक तबके के श्रजमकों के जलए इस ड्राफ्ट
संजिता ने करदाता द्वारा जवत्त पोषण की पठरकपपना की िै। इसीजलए, यि जरुरी िो जाता िै फक सबसे गरीब
सामाजजक-आर्थतक तबके के ऐसे श्रजमकों को वैज्ञाजनक रूप से वगीकृ त कर पििाना जाए। यि संजिता श्रजमकों
के श्रेणीकरण की एक ऐसी प्रणाली की पठरकपपना करता िै जो सामाजजक-आर्थतक मापदण्डों पर आधाठरत िै
और जजसे वैज्ञाजनक रूप से जडज़ाइन फकया गया िो और जनयमों में अजधसूजित फकया गया िो। पंजीकरण के
समय श्रजमक अपना जववरण (अपने सामाजजक-आर्थतक मापदण्डों के बारे में) देगा तथा उसी के आधार पर,
श्रेणीकरण स्वतैः जनधातठरत िो जाएगा।

प्रश्न 10 : क्या आपको लगता िै फक गरीब श्रजमक वगत सामाजजक सुरक्षा के जलए अंिदान का भुगतान कर सकते
िैं ?

इस संजिता में सामाजजक सुरक्षा जितलाभ िेतु राज्य (करदाता) द्वारा जवत्तपोषण, जनयोक्ता द्वारा जवत्तपोषण
और श्रजमक द्वारा जवत्तपोषण के जमश्रण से जनजधयां जुटाई जाएंगी । अतैः अंिदान के जलए संजिता में
जनम्नजलजखत संरिना का प्रस्ताव िै ।

 श्रजमक अगर सामाजजक आर्थतक श्रेणी-IV का कामगार िै, तो अंिदान का दर िून्य िै । ऐसे श्रजमकों का
अंिदान सरकार के अंिदान समवधतन जनजध (जनजधयों) द्वारा भुगतान फकया जाएगा ।
 श्रजमक अगर कमतिारी िै और सामाजजक आर्थतक श्रेणी-IV से निीं िै, तो अंिदान का दर मजदूरी या
मजदूरी की अजधकतम सीमा में से जो भी कम िो का 12.5 प्रजतित, िोगा ।
 श्रजमक अगर गैर कमतिारी िै और सामाजजक आर्थतक श्रेणी-III से िै, तो अंिदान का दर कें र सरकार से
अजधसूजित राष्ट्रीय न्यूनतम मजदूरी का 20 प्रजतित िोगा ।
 श्रजमक अगर गैर कमतिारी िै और सामाजजक आर्थतक श्रेणी-I या सामाजजक आर्थतक श्रेणी-II से िै, तो
अंिदान का दर इन दोनों के अजधकतम का 20 प्रजतित िोगा
i. माजसक आय या मजदूरी की अजधकतम सीमा में से न्यूनतम एवं
ii. कें र सरकार से अजधसूजित राष्ट्रीय न्यूनतम मजदूरी

अतैः कमजोर सामाजजक आर्थतक जस्थजत वाले श्रजमकों को करदाता जवत्तपोषण पद्धजत द्वारा सामाजजक सुरक्षा
प्रदान फकया जाएगा । बाकी श्रजमक जो अपने आप (या अपने जनयोक्ता द्वारा) सामाजजक सुरक्षा के जलए भुगतान
कर सकते िैं, अंिदान भरें गे जजसके द्वारा सामाजजक सुरक्षा जितलाभ प्रदान फकए जाएंगे ।

प्रश्न 11: जनयोक्ता के अंिदान का क्या दर िै ? यि अंिदान संस्थान की कायतप्रकृ जत या पेिव


े र सुरक्षा एवं
स्वास््य (OSH) मानकों से संबद्ध िै?

 जनयोक्ता का अजधकतम अंिदान – मजदूरी का 17.5 प्रजतित सामाजजक सुरक्षा जनजध के जलए और 2
प्रजतित ग्रेच्युठट जनजध के जलए ।
 पंजीकरण के बाद, स्थापनाओं के ओ.एस.एि. मानकों के अनुसार जनयमों में जनधातठरत पैरामीटरों के
आधार पर स्थापनाओं को 4 श्रेजणयों में जवभाजजत फकया जाता िै । यि ओएसएि मानकों के अनुपालन
के आधार पर अलग अलग स्तर के स्तठरत अंिदान का संग्रिण करने िेतु सरकारों को सक्षम बनाने के
जलए फकया गया िै । इससे प्रजतष्ठानों में ओएसएि अनुपालन बढेगा क्योंफक ओएसएि के उच्चतर मानक
के जलए स्तठरत अंिदान जवत्तीय प्रोत्सािन का काम करे गा।
 फकसी जवजिि स्थापना पर उपकर लगाया जाता िै, तो कें र सरकार दोिरा कराधान से बिाने के जलए
जनयोक्ता के अंिदान को कम या रद्द कर सकता िै ।

प्रश्न 12: क्या असंगठित श्रजमक , स्वजनयोजजत श्रजमक, पेंिनभोगी एवं मजिलाओं जैसे कमजोर वगों का
सामाजजक सुरक्षा संगिनों में पयातप्त प्रजतजनजधत्व सुजनजित फकया गया िै?

कमजोर वगों की बात सुनी जाए, ऐसा सुजनजित करने के जलए राष्ट्रीय पठरषद, कें रीय बोडत और राज्य
बोडों में असंगठित श्रजमक और स्वजनयोजजत श्रजमक के संगिनों का प्रजतजनजधत्व सुजनजित फकया गया िै ।
कें रीय बोडत व राज्य बोडों में पेंिनर संगिनों का प्रजतजनजधत्व भी सुजनजित फकया गया िै । तीनों जनकाय
अथातत राष्ट्रीय पठरषद, कें रीय बोडत व राज्य बोडों में मजिला आरक्षण भी प्रदान फकया गया िै ।

प्रश्न 13: क्या यि सि िै फक नया संजिता प्रिासजनक ढांिे के जवकें रीकरण को प्रस्ताजवत करता िै?

िमें समझना िाजिए फक यि संजिता कवरे ज में लगभग दस गुना बढोतरी की पठरकपपना करता िै और
इसमें सवातजधक जिस्सा असंगठित क्षेत्र के कामगारों के कवरे ज का िोगा। इतनी बड़ी संख्या में लाभार्थतयों को
संभालना और उन्िें जिााँ तक िो सके , नजदीक में सेवाएाँ प्रदान करना सुजनजित करने के जलए जवकें रीकृ त ढााँिे
की पठरकपपना की गई िै । िमने जो प्रस्ताजवत फकया िै, वि पूणततया जद्वतीय एन.सी.एल. की जसफाठरिों के
अनुसार िै । िम जत्रपक्षीय कायतकारी प्रणाली का सख्ती से पालन कर रिे िैं । सामाजजक सुरक्षा के जत्र-स्तरीय
प्रिासजनक ढााँिे के जनम्न सभी जनकायों में श्रजमक, जनयोक्ता और सरकार के प्रजतजनजधयों के रूप में जत्रपक्षीय
प्रजतजनजधयों से युक्त संरिना प्रस्ताजवत फकया गया िै : क) प्रधान मंत्री की अध्यक्षता में राष्ट्रीय सामाजजक
सुरक्षा पठरषद समस्त जवजनयमन और मॉजनटररं ग के जलए देि का िीषतस्थ सामाजजक सुरक्षा संगिन िोगा । ख)
कें रीय स्तर पर कें रीय सामाजजक सुरक्षा बोडत और ग) राज्य/संघ राज्य क्षेत्र के स्तर पर सामाजजक सुरक्षा ढााँिे
के कायातन्वयन के जलए राज्य सामाजजक सुरक्षा बोडत । इनके साथ-साथ स्थानीय जनकायों (पंिायत / ििरी
स्थानीय जनकाय) िेतु पंजीकरण और सरलीकरण के कायत जनधातठरत फकए गए िैं ।

प्रश्न 14: क.भ.जन. संगिन और क.रा.बी.जनगम जैसी वततमान संस्थाओं और डी.जी.एल.डब्पयू द्वारा संिाजलत
क्पयाण जनजधयों का क्या िोगा ?

वततमान में श्रजमक की सामाजजक सुरक्षा को संिाजलत करने वाले 15 कानून िैं । यि संजिता एक बार
लागू िोने से ये सभी कानून गतकाजलक िो जाएंगे । इस संजिता द्वारा सृजजत व्यापक सामाजजक सुरक्षा संरिना
वततमान संपूणत ढााँिे की जगि ले लेगा अथातत क.भ.जन.सं. और क.रा.बी.जन. अपने वततमान स्वरूप में निीं िोंगे ।
फफर भी वे के वल ऐसे राज्यों में निीं रिेंगे जिााँ नया ढााँिा अजधसूजित फकया गया िै और बाकी क्षेत्रों में पिले
जैसे िी लागू रिेंगे । इन संगिनों के स्टाफ को नये ढााँिे में कै से आमेजलत फकए जाएंगे, इसका भी संजिता में
प्रस्ताव िै ।

प्रश्न 15: करदाताओं के पैसे से जवत्तपोजषत िोने के प्रावधानों का अयोग्य लोगों द्वारा दुरूपयोग निीं िोगा यि
सुजनजित करने के जलए क्या प्रावधान िैं ?

संजिता में स्थानीय जनकायों द्वारा सभी श्रजमकों के जलए अजद्वतीय आधार आधाठरत पंजीकरण पद्धजत
का प्रस्ताव िै । सभी श्रेजणयों के श्रजमकों के जलए पंजीकरण अजनवायत िै । श्रजमकों के श्रेणीकरण के जलए िम
संपजत्त आधाठरत कसौटी का प्रस्ताव रखते िैं जजनके दृिांत स्वरूप पैरामीटर संजिता में जनधातठरत फकए गए िैं ।
सभी श्रजमकों के जलए पंजीकरण पर सुवाह्य सामाजजक सुरक्षा खाता अथातत जवश्वकमात कार्मतक सुरक्षा खाता
खोला जाएगा जो श्रजमक के आधार संख्या से संबद्ध िोगा। जवकास (VIKAS) सुवाह्यता अथातत श्रजमकों के अन्य
राज्यों में िले जाने पर संजित अंिदान का प्रेषण एवं जितलाभ की देयता सुजनजित करे गा । संजिता में इकाइयों
और संस्थाओं के अजनवायत पंजीकरण का भी प्रस्ताव िै । फफर भी स्वजनयोजजत उद्यमों एवं गृिजस्थयों के जलए
अत्यंत सरल पंजीकरण और अनुपालन आवश्यकताओं की पठरकपपना की गई िै ।

प्रश्न 16: इस संजिता में आवृत्त सामाजजक सुरक्षा की व्यापक पठररे खाएं क्या िैं ?

सामाजजक सुरक्षा पर मूल अंतरातष्ट्रीय श्रम संगिन कं वेंिन सी 102 से इस संजिता ने सामाजजक सुरक्षा
का अथत जनकाला िै । (इस संजिता के पठरजिि के रूप में संलग्न िै ।) इसमें सममेलन में वर्णतत सभी 9 तरि के
सामाजजक सुरक्षा जितलाभ का प्रावधान िै । सामाजजक सुरक्षा जनजध प्रत्येक राज्य में पेंिन, बीमारी लाभ,
मातृत्व लाभ, अपंगता लाभ, अिक्तता लाभ, आजश्रत लाभ, जिफकत्सा लाभ, सामूजिक बीमा लाभ, भजवष्य
जनजध, बेरोजगारी जितलाभ और अंतरातष्ट्रीय श्रजमक पेंिन जितलाभ आफद के जलए योजनाएं प्रदान करे गी। फफर
भी, ऐसा न समझा जाए फक यि संजिता प्रत्येक श्रजमक को प्रथम फदन से यि सब सुजवधाएाँ उपलब्ध कराएगा।
िमें अपने बजट बाध्यताओाँ को ध्यान में रखते हए िरणबद्ध तरीके से काम करना िोगा।

प्रश्न 17: सामान्यतया जनयोक्ता की प्रवृजत्त श्रम कानूनों के अनुपालन से बिने की िोती िै। फकसी कानून में
सीमाएं एक कृ जत्रम अवरोध की तरि काम करती िैं। आप जवकृ त प्रोत्सािनों के बारे में भी बात करते थे ।
संजिता इस समस्या का समाधान कै से करता िै?

िमने जद्वतीय एनसीएल से प्रेरणा ली िै और आईएलओ से जविेषज्ञ सलाि भी जलया िै। संजिता में,
जनयोक्ता देयता को ग्रेच्युठट, मातृत्व जितलाभ और मृत्यु / जवकलांगता मुआवजे के जलए फं ड देयता द्वारा
प्रजतस्थाजपत फकया गया िै। जनयोक्ता की देयता के वल उस जस्थजत में उत्पन्न िोगी जिां वि फकसी कामगार के
संबंध में योगदान का भुगतान करने की उपेक्षा करता िै या नवजनयुक्त कामगार आजश्रत या अक्षमता जितलाभ
के जलए योग्यता सेवा को पूरा निीं करता िै। फकसी कमतिारी को ग्रेच्युटी पात्रता िेतु प्रधान जनयोक्ता की जनरं तर
सेवा में समझा जाएगा, जब तक वि उसी प्रधान जनयोक्ता के जलए लगातार सेवा प्रदान करता िै, िािे वि एक
िी या जवजभन्न िे केदारों के माध्यम से क्यों न िो। अंिधान संवधतन जनजध स्थाजपत की जाएंगी जजसके माध्यम से
सरकार उन श्रजमकों के संबध ं में सामाजजक सुरक्षा में योगदान दे सके गी जो योगदान का भुगतान करने में
असमथत िैं। अन्य प्रजतकू ल प्रोत्सािन कु छ श्रेणी के कामगारों को कवरे ज से बािर रखने, कमतिारी संख्या सीमा
और मजदूरी सीमाओं के कारण िैं। जनयोक्ता गलत श्रेणीकरण, श्रजमकों की संख्या कम फदखा कर या उनकी
मजदूरी को अजधक बता कर प्रावधानों से बि रिे िैं, । दुभातग्य से, प्रवततन अजधकाठरयों के सवोत्तम प्रयासों के
बावजूद ऐसे मामले प्रकाि में आते रिते िैं जिााँ काफी समय से श्रजमकों के सामाजजक सुरक्षा अजधकारों का
िनन फकया जा रिा िै। प्रस्ताजवत व्यवस्था श्रजमकों की आय एवं उनकी संख्या से जनरपेक्ष सभी श्रेजणयों के
प्रजतष्ठानों एवं श्रजमकों के कवरे ज को सुजनजित करे गा जजससे उपरोक्त िुनौजतयों का पयातप्त समाधान िो सके गा

प्रश्न 18: प्रावधानों के लागू िोने से क्या कोई छू ट (exemption) िै?

कोई छू ट निीं िै । अनुसूिी-I- कमतिाठरयों / प्रजतष्ठानों के वगत को जनर्दति करने के जलए प्रदान फकया
गया िै जजन्िें संजिता के कु छ प्रावधानों से बािर रखा गया िै। इस अनुसि
ू ी- I का उपयोग संजिता के िजमक
िरणबद्ध फियांवयन के जलए भी फकया जाएगा। अंतत: यि बजिष्करण के वल ऐसे व्यजक्तयों के जलए लागू िोगा
जो सरकारी कमतिाठरयों के जलए उपलब्ध सामान्य / जनयजमत सुरक्षा का लाभ उिा सकते िैं (जैसे फक ऐसे
कामगार जजन पर सीसीएस पेंिन जनयम लागू िोते िैं)।

ऐसे जनयोक्ता जो पीएफ और ग्रेच्युटी जसस्टम को अपने आप प्रबंजधत कर सकते िैं, उनके जलए
वैकजपपक कवरे ज के जलए अनुमजत के प्रावधान िैं । इसकी स्वीकृ जत के वल ऐसी स्थापना के जलए जो िोगी जो
100 या 100 से ज्यादा कामगारों को रोजगार देती िै । संजिता में भारत के जनयंत्रक एवं मिालेखापरीक्षक
(सीएजी) द्वारा सामाजजक सुरक्षा संगिनों के खातों की लेखापरीक्षा का प्रावधान िै जजसकी वार्षतक ठरपोटत
जवधानमंडल के समक्ष प्रस्तुत की जाएगी। प्रत्येक 5 वषत के अंतराल में योजना के सामाजजक ऑजडट का प्रावधान
भी िै । यफद आवश्यक िो तो छू ट प्राप्त स्थापनाएं भी सी.ए.जी. के द्वारा ऑजडट की जा सकें गी।

प्रश्न 19: वततमान में ईपीएफओ में बेदावा राजि बड़ी रकम एक बहत बड़ा मुद्दा िै। जब िम कवरे ज का इतना
जवस्तार करते िैं, तो समस्या भी कई गुना िो सकती िै। यि संजिता इससे कै से जनपटेगी?

सबसे पिले संजिता में पठरकजपपत आधार आधाठरत सावतभौजमक पंजीकरण को देखते हए बड़ी मात्रा में
बेनाम राजियााँ एकत्र िोने की समभावना बहत कम िो जाएगी। िालांफक, संजिता बेदावा राजि पर आपजत्त एवं
दावेदारी आमंजत्रत करने की प्रजतबद्धता का प्रावधान करता िै और कोई दावेदारी निीं जमलने की जस्थजत में
जब्ती और राष्ट्रीय जस्थठरकरण जनजध (National Stabilization Fund) में जमा करने का प्रावधान करता िै ।
यि उपलेखनीय िै फक वततमान में दावेदारी आमंजत्रत करने और गैर-दावा राजि के संबंध में आपजत्त करने का
ऐसा कोई प्रावधान निीं िै और ऐसी राजियााँ लंबे समय के जलए जनलंजबत खातों(Suspense Accounts) में
पड़ी रिती िैं ।

प्रश्न 20: संजिता कै से सुजनजित करता िै फक फकसी भी पठरजस्थजत में कामगार को उसके प्राप्य जितलाभ से
वंजित निीं फकया जाएगा?

प्रत्येक कामगार को इस संजिता के तित प्रदान फकए गए सामाजजक सुरक्षा प्रणाली के अंतगतत कवरे ज
का अजधकार िोगा। एक सद्भावना संकेत या तुिीकरण के बजाय सामाजजक सुरक्षा प्रत्येक और िर कामगार का
अजधकार िै। यिी कारण िै फक संजिता एक अजधकार आधाठरत जितलाभ प्रणाली का प्रस्ताव करता िै, अथातत्,
जनयोक्ता की लापरवािी के कारण फकसी भी जितलाभ से वंजित कामगार को पिले जनजध से जितलाभ का
भुगतान एवं बाद में दोषी जनयोक्ता से वसूली का प्रावधान। जनयोक्ता द्वारा कवरे ज से मना करने, अंिदान जमा
करने में जवफल रिने/क्षजतपूर्तत या जितलाभ देने से मना करने/ देय सेवा या जितलाभ का प्रावधान निीं करने
पर कामगार / पंजीकृ त ट्रेड यूजनयन / कामगारों के संघ द्वारा सामाजजक सुरक्षा जमत्र को जिकायत का प्रावधान
िै । यि संजिता कामगार को देय सेवा प्रदान करने फक अक्षमता पर आयुक्त द्वारा क्षजतपूर्तत फ़ं ड से देय जितलाभ
के अजतठरक्त मुआवज़ा देने को जनर्दति करता िै । संजिता एक जवस्तृत जिकायत जनवारण फियाजवजध भी देता िै ।

प्रश्न 21: आपने संजिता में पठरभाषाओं की इतनी जवस्तृत सूिी क्यों प्रस्ताजवत की िै ?

जवस्तृत पठरभाषाएं जवजवध व्याख्याओं में लिीलापन कम करके पूरे देि में समझ और फियान्वयन की
एकरूपता सुजनजित करती िै । इससे प्रवततन में कठिनाई और अपयातप्त कवरेज जैसे दुष्प्रभावों से भी राित
जमलती िै। इसके अलावा, जवजवध व्याख्याओं से अस्पिता और अपठरभाजषत क्षेत्र भी बनते िैं जजसके जलए
अनावश्यक न्याजयक िस्तक्षेप की आवश्यक्ता पड़ जाती िै। यफद पठरभाषाएं संपूणत और व्यापक िों तो इन सभी
िुनौजतयों को सुलझाया जा सकता िै ।

प्रश्न 22: सामाजजक सुरक्षा संगिनों के कामकाज में संजिता कै से जवाबदेिी और पारदर्ितता सुजनजित करता िै
?
संजिता एक पारदिी और जनष्पक्ष जवत्तीय ढााँिा सुजनजित करने के जलए एक आजवष्कारी और नए
दृजिकोण की पठरकपपना करती िै । इसमें जनम्नजलजखत िाजमल िैैः-

1. सामाजजक सुरक्षा संगिनों की तजत पर मध्यवती एजेंजसयों के खाते सीएजी लेखा


परीक्षा के अधीन िोगें।
2. जवत्तीय वषत के अंत के छि मिीनों के भीतर खातों की समयबद्ध तैयारी ।
3. प्रत्येक 5 वषों में राज्य बोडों द्वारा सामाजजक सुरक्षा योजनाओं की के न्रीय बोडत द्वारा
अनुमोफदत एजेंजसयों से सामाजजक लेखा परीक्षा (Social Audit) करवाने का
प्रावधान फकया गया िै।

िूाँफक संजिता में पठरकजपपत सामाजजक सुरक्षा तंत्र स्थानीय जनकाय के स्तर सजित जवजभन्न स्तरों पर संिाजलत
िै, सामाजजक लेखा परीक्षा सदस्यों जविेष रूप से जनम्न सामाजजक आर्थतक श्रेणी के श्रजमकों जजनके अंिदान की
सजब्सडी सरकारी जनजध से दी जाएगी, में स्वाजमत्व की भावना उत्पन्न करे गी जजससे जमीनी स्तर पर
सुधारात्मक उपायों के पििान में मदद जमलेगी।

प्रश्न 23: संस्था, प्रजतष्ठान और उद्यम के बीि अंतर क्या िै ?

, 'संस्थाएाँ' एक बहत व्यापक िब्द िै जजसमें प्रकृ जत और कायत की मात्रा पर ध्यान फदए जबना इसमें
संस्थाओं की पूरी श्रृंखला (जजसमें फकसी भी व्यजक्त द्वारा काम फकया जाता िै) िाजमल िै। ‘उद्यम’ और ‘गृिस्थी’
इस जवस्तृत वगत (याजन संस्था) का उप-समूि, अथवा इकाई िै। मसौदे में इस जवभेफदकरण को फकसी भी आर्थतक
गजतजवजध िेतु िलने वाले उद्यमों और घरे लू आवश्यकताओं के जलए काम करने वाले गृिजस्थयों के बीि अंतर
करने के जलए फदया गया िै । इसके अलावा 'उद्यम' एक आर्थतक इकाई िै जो फक फकसी श्रजमक को रोजगार दे
भी सकता िै और निीं भी दे सकता िै । जबफक 'प्रजतष्ठान' वे िैं जिााँ कम से कम एक कमतिारी काम करता िै।

प्रश्न 24: आपने ‘व्यापार’, ‘कारखाना’, ‘पठरयोजना’ इत्याफद िब्दों को अलग क्यों पाठरभाजषत फकया िै?

‘व्यापार’, ‘कारखाना’, ‘पठरयोजना’ आफद जैसे जवजभन्न िब्दों को जविेष रूप से यि सुजनजित करने के जलए
पठरभाजषत फकया गया िै फक सभी प्रकार के कमतिाठरयों को उनके जिताथत सं‎जिता के अंतगतत कवरेज में लाया जा
सके और जनयोक्ता के पास सं‎जिता के प्रावधानों के अंतगतत कवरेजआने से अथवा अनुपालन से बिने के फकसी
भी संभाजवत ठरजक्त का कोई भी जवकपप उप्लब्ध न िो। 'उद्यम' संिाजलत गजतजवजध - जैसे फक जवजनमातण, कृ जष
आफद के प्रकार को जनर्दति करने के जलए 'व्यवसाय' िब्द प्रयुक्त फकया गया िै । ‘उद्यम’ िब्द उन स्वजनयोजजत
कामगारों की इकाइयों को भी िाजमल करता िै । 'संस्थाओं' और 'जनयोक्ता' िब्द में पठरवारों को भी िाजमल
फकया गया िै और इस प्रकार, (यफद अनुसूिी- I में प्रजवजि द्वारा जविेष रूप से िटाया निीं गया) सं‎जिता घरों
और घरे लू श्रजमकों पर भी लागू िोगा।
प्रश्न 25: आपने मजदूरी की उच्चतम सीमा तथा आय की न्यूनतम सीमा के जलए दो अलग िब्दों को प्रयोग क्यों
फकया िै ?

मजदूरी / आय के संदभत में दो सीमा रे खा (Threshold) पठरभाजषत की गई िैं 'आय की सीमा रे खा '
और 'मजदूरी सीमा रे खा' । िब्द 'आय की सीमा रे खा' देय अंिदान पर अजधकतम सीमा जनधातठरत करने के
उद्देश्य से िै। दूसरी ओर, िब्द 'मजदूरी सीमा रे खा' (जो फक न्यूनतम मजदूरी और आय की सीमा रे खा के बीि
किीं िोगी) का उपयोग सं‎जिता में श्रजमको को दो भाग में जवभाजजत करने के जलए फकया गया िै (जनम्न आय और
उच्च आय ) । जैस,े सरकार को श्रजमकों के इन दो वगों के जलए दो अलग-अलग योजनाएं (एक िी उद्देश्य के
जलए) बना सकती िै । एक के जलए आर्थतक सिायता दी जा सकती िै, जबफक अन्य के जलए निीं । साथ िी इस
िब्द को बीमारी जितलाभ के जलए योग्यता के जलए प्रयोग फकया गया िै ।

एक अन्य सीमा रे खा - एक प्रजतष्ठान के अधीन कायतरत कमतिाठरयों की संख्या के संदभत में िै। इसका
प्रयोग संगठित और असंगठित क्षेत्र को पठरभाजषत करने के जलए फकया जाता िै। िालांफक यि सं‎जिता सभी क्षेत्रों
(संगठित या असंगठित) पर लागू िोता िै, इस सीमा रे खा को ग्रेच्युटी की पात्रता के उद्देश्य के जलए रखा गया िै।

प्रश्न 26: क्या कें र सरकार के जवजभन्न मंत्रालयों तथा कें र एवं राज्य के बीि वांजछत समन्वय स्थाजपत करना
संभव िोगा ?

कें र तथा राज्यों के स्तर पर एवं जवजभन्न मंत्रालयों में सौिादतपूणत समन्वय स्थाजपत करने के जलए राष्ट्रीय
पठरषद को िीषत जनकाय बनाया गया िै जजसमें प्रधानमंत्री की अध्यक्षता में जनयोक्ताओं तथा कामगारों के
अजतठरक्त जवत्त तथा स्वास्थय मंजत्रयों एवं सभी राज्य तथा कें र िाजसत प्रदेिों के मुख्यमंजत्रयों/ प्रिासकों को
सजममजलत फकया गया िै। राष्ट्रीय पठरषद के गिन को वस्तु सेवा कर पठरषद, जो भारत में वस्तु सेवा कर की
व्यवस्था को स्थाजपत करने में सफल रिी िै, की तजत पर प्रस्ताजवत फकया गया िै।

प्रश्न 27: जविेष पंजीकृ त व्यजक्त के जलए एक जविेष श्रेणी की आवश्यकता क्यों मिसूस की गई?

यि समझा जाता िै फक पंजीकरण पठरजध (और पठरणामस्वरूप सामाजजक सुरक्षा योजनाओं के दायरे ) के
अंतगतत सभी श्रजमकों को िाजमल करने के िमारे सवोत्तम प्रयासों के बावजूद ऐसे व्यजक्त िोंगे जो छु ट गए िैं। यि
जविेष तौर पर संजिता लागू िोने के समय से उन व्यजक्तयों के मामले में सिी िो सकता िै जो सं ‎जिता के लागू
िोने के समय बूढे और दुबतल िोने के कारण अंिदान प्रणाली की पठरजध में निीं जा सकते िैं । ऐसे व्यजक्तयों के
जलए, सं‎जिता में (राज्य सरकार द्वारा जवत्त पोजषत) सामाजजक सिायता कायतिम की पठरकपपना की गई िै, और
इस उद्देश्य के जलए ऐसे व्यजक्तयों के 'जविेष पंजीकरण' की अवधारणा िै।

प्रश्न 28: सामाजजक सुरक्षा क्षजतपूर्तत जनजध को कै से जवत्त पोजषत फकया जाएगा ?

क्षजतपूर्तत जनजध को मसौदा संजिता की धारा-28 के अनुसरण में कमतिाठरयों को उपलब्ध करवाए जा
रिे जितलाभों के संबंध में संजिता कायातन्वयन के दौरान जनयोक्ताओं से िजातने में वसूली जाने वाली राजि से
जवत्त पोजषत फकया जाएगा। िूफक इस राजि को संजिता के प्रावधानों के अनुसार अजनवायततैः क्षजतपूर्तत जनजध में
जमा करवाया जाएगा तथा इसका प्रयोग के वल कु छ जनधातठरत प्रयोजनों, जैसे फकसी कामगार को कोई भी सेवा
प्रदान करने में जवफलता या कमी के एवज में क्षजतपूर्तत के भुगतान के जलए िी फकया जाएगा।

प्रश्न 29: अंिदान संवधतन जनजध का क्या उद्देश्य िै ?

सं‎जिता,अंिदान संवधतन जनजध स्थाजपत करने के जलए यथाजस्थजत कें र सरकार या राज्य सरकार को
सिक्त करती िै। अंिदान संवधतन जनजध संबंजधत राज्य बोडत द्वारा प्रिाजसत िोगा। राज्य बोडत, सामान्य या
जविेष आदेिों द्वारा कामगारों की तरफ से राज्य अंिदानों को राज्य सामाजजक सुरक्षा जनजध में जमा करने के
जलए अजधकृ त िैं। इसके उपरांत राज्य सामाजजक सुरक्षा जनजध में जमा यि राजि राज्य बोडों द्वारा राज्य
सलािकार सजमजतयों के परामित के आधार पर लाभाथी श्रजमकों के जवकास खाते में जमा की जाएगी ।

प्रश्न 30: राष्ट्रीय जस्थरीकरण जनजध को बनाए जाने का क्या उद्देश्य िै ?

यि सं‎जिता एक राष्ट्रीय जस्थरीकरण जनजध स्थाजपत करने का प्रावधान करता िै जजसका इस्तेमाल पूरे देि में
योजना जनजधयों को समन्वय करने के जलए फकया जाएगा। राष्ट्रीय जस्थरीकरण जनजध का प्रबंधन के न्रीय बोडत
द्वारा फकया जाएगा। फकसी भी योजना में बीमांफकक अजधिेष या अजतठरक्त राजि को राष्ट्रीय जस्थरीकरण जनजध
में जमा फकया जाएगा और यफद कोई राज्य योजना जनजध संकट में पड़ जाती िै तो इसका उपयोग फकया
जाएगा। इसका इस्तेमाल बीमांफकक मूपयांकन के बाद फकसी भी योजना में पाए गए घाटे के मामले में राज्य
बोडों को ऋण या अनुदान प्रदान करने के जलए फकया जाएगा।

प्रश्न 31: अजधकतर उपकर अजधजनयमों को समाप्त कर फदया गया िै । आपने संजिता में उपकर लगाने का
प्रावधान क्यों रखा िै ?

यि भाग एक जनजित सीमा के ऊपर सभी जनमातण कायों पर जनमातण कर लगाए जाने का जविेषतौर
पर प्रावधान करता िै । यि जनमातण कामगारों की सुरक्षा के जलए िै क्योंफक आमतौर पर यि पाया जाता िै फक
ये कामगार औपिाठरक रोजगार संबंधों के आधार पर काम पर निीं लगे हए िैं । इसके अजतठरक्त, संजिता, अन्य
उत्पाद और सेवाओं पर उपकर लगाने के जलए के न्र सरकार को एक सामान्य िजक्त प्रदान करने का भी प्रावधान
करता िै । अतैः अंिदान (जनयोक्ता/कमतिाठरयों के ) एकजत्रत करने िेतु के वल वैकजपपक तंत्र के तौर पर उपकर
का प्रावधान रखा गया िै । सरकार का आिय फकसी क्षेत्र पर उपकर लगाने का निीं िै क्योंफक भाग डी के
अंतगतत वसूल फकया गया जनयोक्ता तथा कमतिारी का सामान्य अंिदान सामाजजक सुरक्षा आवश्यकता को पूरा
करने के जलए पयातप्त िोना िाजिए । तथाजप यि समझा जाता िै फक कु छ क्षेत्रों में अनौपिाठरकता की संभावना
बहत ज्यादा िै जजसके कारण जनयोक्ताओं द्वारा कमतिाठरयों की संख्या को घोजषत निीं फकया जाता िै व जजसके
फलस्वरूप वे सामाजजक सुरक्षा के दायरे से बािर रि जाते िैं । ऐसे क्षेत्रों को जनयंजत्रत करने के उद्देश्य से,
उपकर लगाने की िजक्तयों को रखा गया िै ताफक ऐसे क्षेत्रों में, जिां जनयोक्ता अपने दाजयत्वों से बि रिे िैं,
संबंजधत कामगारों को उपकर लगाए जाने से संरजक्षत फकया जा सके , और उपकर के इस संग्रि से उनका
अंिदान प्रदान फकया जा सके ।
प्रश्न 32: घरे लू कामगारों एवं स्वजनयोजजत कामगारों को पंजीकरण अथवा अंिदानों भुक्तान के प्रावधानों में
क्या लिीलापन प्रदान फकया गया िै ?

फकसी स्वजनयोजजत कामगार को अपने पंजीकरण के समय, अपने उद्यम के आवश्यक जववरणों को
प्रस्तुत करना िोगा जजसके आधार पर उसे एवं उसके उद्यम दोनों को पंजीकृ त फकया जाएगा । कोई अलग
पंजीकरण आवेदन आवश्यक निीं िै । जिां तक घरे लू कामगारों को रोजगार देने वालों का संबंध िै, उनके द्वारा
ऐसे जववरणों सजित, जो जनधातठरत िों, प्रथम ठरटनत-सि-िालान का प्रस्तुतीकरण पयातप्त साक्ष्य िोगा फक उन्िोंने
पंजीकरण की आवश्यकताओं का अनुपालन फकया िै। यद्यजप अंिदानों का भुगतान माजसक आधार पर फकया
जाना िै; तथाजप सरल अनुपालन प्रावधान िेत,ु गृिजस्थयों (घरे लू कामगारों को रोजगार देने वाले) जतमािी,
छमािी इत्याफद के जलए समेफकत अंिदान दे सकते िैं । स्वजनयोजजत कामगार माजसक आधार पर अंिदान कर
सकते िैं, तथाजप उनके पास भी समेफकत रूप से अंिदान करने का जवकपप रिेगा।

प्रश्न 33: प्रिासजनक प्रभार कै से जनधातठरत फकए जाएंगे ?

प्रिासजनक प्रभार का भुगतान जनयोक्ता द्वारा फकया जाना िै। कमतिारी भजवष्य जनजध प्रणाली
की तुलना में अंिदान गणना की प्रफिया में थोड़ा पठरवततन फकया गया िै। मजदूरी की एक जनधातठरत प्रजतितता
की बजाय प्रिासजनक प्रभार अंिदान का एक जनधातठरत प्रजतित (4% से कम) िोगा। राज्य (अथातत सरकार) के
अंिदान की जस्थजत में उक्त प्रिासजनक प्रभार सरकार के अंिदान से काटा जाएगा।

प्रश्न34: क्या ग्रेच्युटी जनजध में देय मजदूरी का 2% ग्रेच्युटी देयता को पूरा करने में पयातप्त िोगा?

िम यि समझते िैं फक प्रस्ताजवत अंिदान, जो फक मजदूरी का 2% िै के माध्यम से सभी


कमतिाठरयों के संबंध में देय ग्रेच्युठट को पूरा कर पाना संभव निीं िोगा। तथाजप, जनयोक्ताओं की परे िाजनयों को
कम करने िेतु इसे कम रखा गया िै। माजसक अंिदान राज्य बोडत द्वारा वसूली कर जनयोक्ता के नाम से राज्य
ग्रेच्युठट जनजध में जमा फकया जाएगा। इस प्रकार राज्य ग्रेच्युठट जनजध प्रत्येक जनयोक्ता के अंिदान से बना िोगा,
जो फक सामूजिक जनजध (pooled fund) निीं िोगा। यि इसजलए फकया गया िै फक जनयोक्ता को ग्रेच्युठट के
भुगतान िेतु बित करने को बाध्य फकया जा सके और आवश्यकता पड़ने पर अंत समय में जब ग्रेच्युठट का
भुगतान करना िो तो उन पर अिानक बोझ न पड़े।

जनयोक्ता के ग्रेच्युठट जनजध में राजि उपलब्ध रिने पर तथा उक्त जनयोक्ता के फकसी कमतिारी का
ग्रेच्युठट के जलए िकदार िोने पर आयुक्त राज्य ग्रेच्युठट जनजध में जमा जनयोक्ता की राजि में से कमतिारी को देय
ग्रेच्युठट की राजि का भुगतान करे गा। जनयोक्ता की ग्रेच्युठट जनजध में पयातप्त राजि उपलब्ध निीं िोने की जस्थजत में
आयुक्त, जनयोक्ता को 15 फदनों के भीतर कमतिारी को देय ग्रेच्युठट राजि का भुगतान करने िेतु जनदेि देगा। इस
प्रकार प्रस्ताजवत योजनाओं में ग्रेच्युठट के भुगतान की अजधकतम अवजध को बढाकर 60 फदन कर फदया गया िै।
प्रश्न 35: मृत्यु, अपंगता तथा सेवाजनवृजत जितलाभ से संबजं धत सवतग्रािी अध्याय के पीछे क्या तकत िै?

इसके पीछे का तकत कामगारों को सफिय सेवा की समपूणत अवजध के दौरान सवतग्रािी कवरे ज
एवं वृद्धावस्था पेंिन, जवकलांगता पेंिन तथा कामगार की मृत्यु की जस्थजत में आजश्रत पेंिन की गारं टी उपलब्ध
कराना िै। साथ िी यि भाग रोज़गार दुघतटना के कारण अथव अन्य कारण से मृत्यु/अपंगता के बीि अन्तर निीं
करता िै क्योंफक ऐसी एक कार्मतक तथा उसके पठरवार के जलए इस प्रकार की आकजस्मकता काफी किदायी
िोती िै, जविेषकर जिााँ कार्मतक एकमात्र कमाने वाला िै, उसकी मृत्यु अथवा अपंगता पूरे पठरवार को
अभावग्रस्त कर देती िै। इस प्रकार, इसके तित संस्थाजपत पेंिन योजना के माध्यम से जवपजत्त में कार्मतक तथा
उसके पठरवार को आय की सुरक्षा प्रदान करता िै।

श्रजमकों के जलए जितलाभ की गारं टी िै तथा यफद कोई कामगार जनयोक्ता द्वारा कवरेज न फकए जाने के
कारण पेंिन योजना के अन्तगतत जितलाभ प्राप्त करने से वंजित िो तो, प्रारं भ में जितलाभ आयुक्त द्वारा देय िोंगे
तथा संजिता की धारा 28 के अनुसोर जनयोक्ता से वसूली की जाएगी।

प्रश्न 36: राज्य बोडत के संसाधन बीमारी जितलाभ के व्यय को पूरा करने में यफद असमथत रिते िैं तो उस
जस्थजत में क्या िोगा ?

प्राप्त अंिदान से अजधक िोने की जस्थजत में बीमारी जितलाभ का विन समबंजधत राज्य सरकार द्वारा
फकया जाना अपेजक्षत िै। तथाजप कमी की जस्थजत में औजित्यपूणत / िोस कारणों के आधार पर इस कमी को कें र
सरकार द्वारा पूरा फकया जाएगा।

प्रश्न 37: क्या यि सि िै फक संजिता सामाजजक सुरक्षा प्रणाली के बड़े पैमाने पर जनजीकरण को बढावा देता िै?

िमने सामाजजक सुरक्षा के प्रिासन में पीपीपी प्रणाली को सक्षम करने के जलए जनजध प्रबंधन,
उपजस्थजत, सेवा जवतरण, जितलाभ जवतरण, ठरकॉडत रखने और सुजवधा के क्षेत्र में मध्यवती एजेंजसयों की
लाइसेंससंग के जलए एक प्रावधान फकया िै। ये एजेंजसयों जवजिि सेवाएाँ देने के जलए राज्य बोडों के प्रजतजनजध
िोंगे। सेवा जितलाभ प्रदान करने फक अंजतम देयता और जज़ममेदारी बोडत की बनी हई िै। िमने मध्यवती एजेंसी
के िासी जनकाय में एक जनदेिक के नामांकन एवं जनयुजक्त के जलए भी एक प्रावधान रखा िै। ग्रािकों के जितों की
रक्षा िेतु मध्यवती एजेंजसयों पर जनयंत्रण रखने के जलए पयातप्त सुरक्षा उपाय (मध्यवती एजेंसी के गव्नगग बोडत
के अजधग्रिण सजित, यफद आवश्यक िो तो) फकए गए िैं। मध्यवती एजेंजसयों को जनयुजक्त करना संबंजधत राज्य
बोडत की आवश्यकता पर जनभतर करता िै तथा यि अजनवायत निीं िै।

प्रश्न 38: संजिता में अपीलीय प्रावधान क्या िै?

संजिता सामाजजक सुरक्षा को प्रत्येक मजदूर का अजधकार बनाने के जलए जवस्तृत जिकायत जनवारण तंत्र
जनधातठरत करता िै। जिां लाभाथी सामाजजक सुरक्षा जमत्र के जलए की गई अपनी जिकायत पर की गई कारवाई
(या गैर कायतवािी) से पीजड़त िैं, पिले स्तर की अपील जवभाग के अपीलीय अजधकारी के पास दजत की जा
सकती िै। इसी प्रकार, ऐसे मामलों में जिां जनयोक्ता आकलन अजधकारी द्वारा पाठरत आदेिों से पीजड़त िै
अपीलीय अजधकारी को अपील कर सकता िै। प्रथम अपीलीय अजधकारी प्राजधकृ त अजधकाठरयों के अन्य आदेिों
(सं‎जिता के तित) के जखलाफ जैसे फक पंजीकरण (या उसकी अस्वीकृ जत) से संबंजधत आदेि/ ग्रेच्युटी की पात्रता
से संबंजधत आदेि, बेदावा राजि आफद को जब्त करने आफद के आदेिों के बारे में भी अपील सुनता िै| उन्िें कु छ
प्रश्नों और जववादों का जनधातरण करने की भूजमका भी दी गई िै , जैसे फक फकसी भी व्यजक्त को कमतिारी माना
जाएगा या निीं, कोई संस्था प्रमुख जनयोक्ता िै या निीं, आफद।

अपीलीय अजधकाठरयों के समक्ष अपील को दाजखल करने से पिले(प्रथम स्तर) आकजलत जववाफदत राजि को
जमा करने की कोई पूवत ितत निीं िै। िालांफक, अपील पर कारत वाई से पिले स्वीकायत राजि का भुगतान करना
िोगा| इससे जनयोक्ता के जववादों के आसान समाधान संभव िोंगे।

आकलन अजधकारी / अपीलीय अजधकारी को अंिदान अथवा देयों के भुगतान में जानबूझकर की गई िूक या
जवलमब की जस्थजत में जुमातना लगाने की िजक्त िै|

जद्वतीय अपील (अपीलीय अजधकारी के आदेिों के जखलाफ) इस सं‎जिता के तित बनाए गए न्यायाजधकरण के
समक्ष दाजखल की जा सकती िै। जद्वतीय अपील को दाजखल करने के जलए, अपीलकतात को ऐसी फकसी भी राजि
को जमा करना िोगा जो न्यायाजधकरण जनधातठरत करे गा| न्यायाजधकरण मेजडकल बोडत के फै सलों और
इंटरमीजडएट एजेंजसयों के जखलाफ आयुक्त की कारत वाई से संबंजधत मामलों पर भी सीधे अपील सुनेगा |

अनुवती अपील (कानून से संबंजधत प्रश्न पर) संबंजधत उच्च न्यायालय में की जा सकती िै|

प्रश्न 39: सामुदाजयक सेवा आदेि के प्रावधान को िाजमल करने की क्या आवश्यकता थी?

िम मानते िैं फक सामाजजक सुरक्षा कानून के संबंध में अपराध करने वाला कोई भी व्यजक्त
फकसी व्यजक्त के जवरूद्ध कोई अपराध निीं करता िै, बजपक पूरे समाजजक सुरक्षा तंत्र को खतरे में डालता िै और
इसजलए ऐसे व्यजक्त के सुधार के उपाय फकए जाने िाजिए जजससे वि भजवष्य में ऐसे कृ त्य न करे । इसजलए ऐसे
मामलों में फकए गए अपराध के जलए जिााँ दो साल से अजधक कारावास के दंड का प्रावधान निीं िै और अदालत
उसे सामुदाजयक सेवा आदेि देने के जलए उपयुक्त मामला समझता िै अदालत के आदेिानुसार अवैतजनक कायत
करने के जलए सामुदाजयक सेवा आदेि का प्रावधान करता िै।

प्रश्न 40: संजिता के संदभत में ‘जवजित’(prescribed), ‘जनधातठरत’(stipulated) एवं ‘उपजनयम में जवजनर्दति’
(specified in by-laws) का क्या अथत िै?

यि संजिता अनेक प्राजधकरणों को अधीनस्थ कानून बनाने की िजक्तयां देता िै। के न्द सरकार तथा राज्य सरकार
जनयम बना सकती िैं ; राष्ट्रीय पठरषद ‘जवजनयम’ बना सकती िै तथा के न्रीय बोडत ‘उपजनयम’ बना सकती िै।
तीन जवजभन्न िब्दों अथातत् (जनयम, जवजनयम तथा उपजनयम) इनके बीि भेद करने के जलए प्रयोग फकए गए िैं।
जवजभन्न स्थानों पर संजिता में के न्र सरकार द्वारा बनाए गए जनयमों के संबंध में ‘जवजित’(prescribed) िब्द का
प्रयोग फकया गया िै । राष्ट्रीय पठरषद द्वारा बनाए गए ‘जवजनयमों’ के संबंध में ‘जनधातठरत’(stipulated) िब्द
तथा के न्रीय बोडत द्वारा बनाए उपजनयमों के संबंध में ‘उपजनयम में जवजनर्दति’ (specified in by-laws) िब्द
का उपलेख फकया गया िै। इसके अजतठरक्त यफद फकसी जवषय पर राज्य सरकार द्वारा जनयम बनाए जाते िैं तो
अलग-अलग उपबंधों में इसका उपलेख जविेष रूप से फकया गया िै।

संजिता की जवजभन्न धाराओं के अंतगतत अधीनस्थ कानूनों के प्रारूप तैयार करने की िजक्त िमिैः कें र
सरकार, राष्ट्रीय पठरषद एवं कें रीय बोडत को उनके संबजन्धत कायों के आधार पर दी गयी िै। इन अधीनस्थ
कानूनों को िमिैः जनम्नांफकत तीन समूिों में वगीकृ त फकया गया िै जनयम, जवजनयम एवं उपजनयम।

िब्द ‘जवजित’(prescribed) एवं ‘जनधातठरत’(stipulated) का प्रयोग वाक्यांि को सजक्षप्त करने के


जलए फकया गया िैं अन्यथा इसे “कें र सरकार द्वारा जनर्मतत जनयमों द्वारा जवजित या “राष्ट्रीय पठरषद द्वारा
जनर्मतत जवजनयमों द्वारा जनधातठरत” जलखा जाता। िमारे द्वारा प्रयुक्त श्रेणीकरण जनम्नांफकत िै-

‘जवजित’(prescribed) अथातत इस संजिता के अंतगतत कें र सरकार द्वारा जनर्मतत जनयमों द्वारा
जवजित (जब तक अन्य प्रकार से जवजनर्दति न िो) । कें र सरकार को संजिता के प्रावधानों को पूणत करने
के जलए पूवत प्रकािन की ितों पर राष्ट्रीय पठरषद के परामित पर जनयम बनाने की िजक्त प्राप्त िै।

‘जनधातठरत’ (stipulated) अथातत राष्ट्रीय पठरषद द्वारा जनर्मतत जनयमों द्वारा जवजनर्दति, जजसके
द्वारा सामाजजक सुरक्षा योजना को जनयंजत्रत करने एवं भारत में इनको कायतजन्वत करने िेतु एवं इससे
जुड़े फकसी भी प्रासंजगक मामले के जलए, जवजनयम बनाया जा सकता िै।

‘उपजनयम में जवजनर्दति’ (specified in by-laws) अथातत, धारा 166 के अंतगतत कें रीय बोडत
द्वारा जनर्मतत उप जनयम। ये मूलरूप से कायतजवजधक मामलें जैसे दस्तावेज़, जववरणी, कायतवािी इत्याफद
से संबंजधत िैं।

इसके अजतठरक्त, यफद फकसी जवषय पर राज्य सरकार द्वारा जनयम बनाया जाना िो, तो इसे
संबंजधत प्रावधानों में जविेष रूप से उपलेजखत फकया गया िै।

प्रश्न 41: संजिता में प्रस्ताजवत जिफकत्सीय लाभों और कें र/राज्य सरकार द्वारा प्रदान की जाने वाले जिफकत्सीय
देखभाल के बीि क्या संबध
ं िै। ?

वततमान में, िूफक असंगठित क्षेत्र के कामगार सामाजजक सुरक्षा कानून के तित कवडत निीं िै, कें र/राज्य
सरकार अपनी जिफकत्सा सेवा संस्थाओं जैसे प्राथजमक उपिार कें र, दवाखानों और अस्पतालों के माध्यम से
जिफकत्सा सुजवधा प्रदान करती िै।
इस संजिता के अंतगतत जिफकत्सा लाभ/बीमा सावतभौजमक िोने के उपरांत मौजूदा स्वास््य ढांिा इस
संजिता के अधीन प्रस्ताजवत जिफकत्सा जितलाभ योजना में समाजित िो जाएगा और यि आवश्यक्ता अनुसार
अंिदानों और कपयाण जनजध के प्रवाि के कारण मजबूत बनेगा। फफर भी, जैसा फक िम सावतभौजमक सामाजजक
सुरक्षा के िरणबद्ध फियान्वयन की पठरकपपना कर रिे िै। कें रीय स्वास््य और पठरवार कपयाण मंत्रालय
द्वारा, राज्य सरकारों अथवा स्थानीय जनकायों द्वारा प्रदत स्वास््य सेवाएं सावतभौजमकरण की पूणतत: प्राजप्त तक
प्रासंजगक बनी रिेंगी।

प्रश्न 42: भवन और अन्य जनमातण कामगार उपकर को कौन संग्रिीत करे गा ?

उपकर को स्थानीय प्राजधकारी या राज्य सरकार द्वारा संग्रिीत फकया जाएगा और यथोजित संग्रि
प्रभार की कटौती के उपरांत राज्य सरकार को िस्तांतठरत फकया जाएगा। बीओसीडब्लू कपयाणकारी उपकर
अजधजनयम, 1996 उपयुतक्त वर्णतत रीजत से बीओसीडब्लू उपकर के लगाने एवं संग्रिण का प्रावधान करता िै।
जनगम जनकाय योजनाओं के पास िोने के समय उपकर को संग्रिीत कर सकते िैं।

प्रश्न43: व्यजक्तगत आंकड़ों (सूिनाओं) की जनजजता की सुरक्षा सुजनजित करना सदैव अपेजक्षत िै, क्या संजिता में
इसका प्रावधान फकया गया िै ?

सं‎जिता जववरजणयों की गोपनीयता सुजनजित करता िै। इस सं‎जिता के अंतगतत कोई भी व्यजक्त फकसी भी
अनाजधकृ त व्यजक्त को इस सं‎जिता के प्रावधानों को लागू करने के दौरान संग्रजित सूिना को जानबूझकर प्रकट,
अंतठरत निीं कर सकता और न िी उसकी प्रजतजलजप या अन्यथा फकसी भी जानकारी का प्रसार िीं कर सकता
िै। इसी प्रकार, सामाजजक सुरक्षा संगिन के आंकड़ों को अनाजधकृ त रूप से प्राप्त करने, डाउनलोड करने, िुराने,
छेड़छाड़ करने अथवा नि करने पर प्रजतबन्ध िै।

संजिता का एक अध्याय “एफ” इस सं‎जिता के कायातन्वयन के दौरान एकजत्रत आकड़ों तथा सूिनाओं को
गोपनीयता के आधार पर वगीकृ त करता िै तथा ऐसे अपवाद जनधातठरत करता िै जिााँ सरकार, उसकी एजेंजसयों
तथा न्यायालयों पर गोपनीयता का प्रजतबंध लागू निीं िै।

प्रश्न 44: वततमान में िे का कामगारों के कम कवरे ज को देखते हए िे का कामगारों की कवरे ज िेतु ऐसा
संस्थाजनक प्रबंध िोना िाजिए जो उनकी सिबद्धता तथा कवरे ज को प्रेठरत करें ।

स्रोत पर अंिदान की कटौती (CDS) की संकपपना कायत िे का के दौरान कामगारों के कवरे ज को प्रेठरत
करने के जलए िी रखी गई िै। स्त्रोत पर कटौती की संकपपना अंिदान की िोरी को रोकने के जलए लाई गई िै।

स्रोत पर कटौती (CDS) की संकपपना आयकर की TDS प्रणाली से ली गई िै। यिााँ िे के वाले काम की
जस्थजत में, िे का तय करने वाला व्यजक्त जनयोक्ता िै तथा जनयोक्ता अपने कमतिारी को सामाजजक सुरक्षा प्रणाली
में कवर करने के जलए जजममेदार िै। तथाजप फकसी प्रकार की िूक से बिने के जलए यि प्रस्ताव फदया गया िै फक
िे केदार को भुगतान की जानेवाली राजि में से िे का देने वाला व्यजक्त स्त्रोत पर अंिदान की कटौती के रूप में एक
जनजित राजि काटकर इसे सामाजजक सुरक्षा जनजध (यि उिंत खाता में जाएगा) में जमा कर िे केदार को इस
बाबत एक प्रमाणपत्र देगा। यि प्रमाणपत्र िे केदारों के जलए “िे जडट नोट” की तरि िै तथा उसे वि अपनी ठरटनत
भरने के समय उपयोग में ला सकता िै। (जब काम देने वाला िे केदार अपनी ठरटनत प्रस्तुत करे गा तब उिंत
खाता में जमा राजि कामगार के जवकास खाते में जमा कर जनपटा फदया जाएगा)। िे का देते समय फकसी भी
सूरत में स्त्रोत पर अंिदान की कटौती सुजनजित की जाएगी।

प्रश्न45: क.रा.बी.जन./क.भ.जन.सं. के तित वततमान लाभार्थतयों का क्या िोगा जजन्िें जवजभन्न योजनाओं के तित
कई प्रकार के जितलाभ स्वीकृ त कर फदए गए िैं ?

बंद योजनाओं के तित लाभाथी स्वीकृ त जितलाभ लेने के िकदार बने रिेगें । बंद योजनाओं के तित
उनको देय स्वीकृ त जितलाभ कम निीं िोंगे तथा पूवत संगिनों के जनणतयों के तित सृजजत जवत्तीय दाजयत्वों का
विन करने की जज़ममेदारी उत्तराजधकारी बोडत की िोगी ।

प्रश्न 46 : क्या क.रा.बी.जन. एवं क.भ.जन.सं. के तित प्रदत्त छू ट (exemption) जारी रिेगी?

क.भ.जन. अजधजनयम, 1952 की धारा 17 के तित अथवा क.रा.बी.जन. अजधजनयम, 1948 की धारा
87 अथवा 88 के तित प्रदत्त कोई भी छू ट, जनम्न में से पिले खत्म िोने वाली अवजध तक इस संजिता के तित
प्रदत्त वैकजपपक कवरे ज व्यवस्था संिाजलत करने की अनुमजत मानी जाएगी -

(अ) प्रदत्त छू ट की वैधता समाप्त िोने की जतजथ।

(ब) इस संजिता के लागू िोने के एक वषत पूरा िोने की जतजथ।


EPFO UPSC
ALL Exam tricks
UPSC EPFO
-: APFC VACANCY DETAIL :-
Post Name – APFC – ASSISTANT PROVIDENT FUND COMMISSIONER
Number of vacancy – 159
Detail of reserved seats – SC-25, ST-12, OBC-38, EWS-12, UR-68,PwBD-8
Age Criteria – 35 FOR GENERAL
Essential Qualification – NORMAL GRADUATION
How to fill form – GET FROM UPSC SITE OR DIRECT LINK IN OUR
TELEGRAM CHANNEL
Paper Pattern – 120 MCQ(300 marks) Then Interview(100 marks) Total
400 marks for final cutoff.
-: AO/EO VACANCY DETAIL
:-
Post Name – AO/EO – ACCOUNT / ENFORCEMENT OFFICER
Number of vacancy – 418
Age Criteria – 32 FOR GENERAL
Essential Qualification – NORMAL GRADUATION
How to fill form – GET FROM UPSC SITE OR DIRECT LINK IN OUR
TELEGRAM CHANNEL
Paper Pattern – 120 MCQ(300 marks) Then Interview(100 marks) Total
400 marks for final cutoff.

WATCH ABOVE VIDEO BEFORE FILLING FORM

-1-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:

Q1- UPSC क्या है ?


UPSC का पूरा नाम Union Public Service Commission (संघ लोक सेवा आयोग) है ।
आजादी के तत्पश्चात 26 अक्टू बर 1950 ईस्वी को लोक सेवा आयोग के नाम में संशोधन
कर संघ लोक सेवा आयोग (UPSC) रखा गया। इस संशोधन का संबंध संववधान के
Article 315 से है। संघ लोक सेवा आयोग का भी कायय ग्रेड A तथा B के अवधकाररयों का
चयन करना है ।

Q2- EPFO क्या है ?


EPFO का फूल फॉमय The Employees’ Provident Fund Organisation है जो दु वनया की
सबसे बडी सामावजक सुरक्षा संगठन है । यह एक ररटायरमें ट फंड बॉडी है जो भारत में
सैलरी पा रहे लोगों को पेंशन , बीमा के माध्यम से सामावजक सुरक्षा दे ने का काम करती
है । इसका गठन 4 माचय , 1952 को वकया गया था । इसका हे डक्वाटय र नई वदल्ली में हैं
। इसे केंद्र सरकार द्वारा ऑपरे ट वकया जाता है । EPFO का फूल फॉमय The Employees’
Provident Fund Organisation है वजसे वहं दी में कमय चारी भववष्य वनवध संगठन भी
कहते हैं ।

Q3- EPFO में किस तरह िी वैिेंसी कनिलती है ?


Important Vacancies – Conducted by Grade Pay
 SSA(social security asst.) – IBPS 2800/-
 ASO(asst. section officer) – IBPS 4600/-
 EO/AO(account/enforcement officer) – UPSC 4800/-
 APFC(asst. provident fund commissioner) – UPSC 5400/-

Q4- UPSC द्वारा कलए गए EPFO िे किछले िुछ एग्जाम ?

Important Vacancies – YEAR Total vacancies


 APFC(asst. provident fund commissioner)– 2003 31
 APFC(asst. provident fund commissioner)– 2006 70
 APFC(asst. provident fund commissioner)– 2014 253
 APFC(asst. provident fund commissioner)– 2016 170
 EO/AO(account/enforcement officer) – 2017 257
 EO/AO(account/enforcement officer) – 2020 421

Q5- APFC क्या है ?


APFC एक ग्रुप A ले वल का CLASS 1 OFFICER POST है जो की IRS के equivalent है
उसका exam UPSC single MCQ based और वफर interview के बाद selection होता
है , कोई भी graduate student form को fill कर सकता है |

Q6- APFC/AO-EO िा exam pattern क्या है ?


 Single MCQ based exam.
 Total 120 questions mark 300 and 1/3 minus marking.
 Interview of 100 marks.
 Final merit calculate out of 400 (Mcq exam 300 + Interview 100)

-2-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:

Q7- APFC/AO-EO िा syllabus क्या है ?


UPSC हमे शा कुछ questions out of the syllabus पूछता
है , वो सब भी हमारे द्वारा कवर वकया जा रहा है , ले वकन
APFC/AO-EO का official syllabus यह है |

Q8- EPFO िे last exam में क्या merit गई थी ?

EO/AO CUTOFF 2017 VACANCY 257

EO/AO CUTOFF 2020 VACANCY 421

APFC CUTOFF 2016 VACANCY 170

Q9- UPSC EPFO APFC/AO-EO में प्रमोशन िैसा होता है 

Q10- UPSC EPFO APFC में SALARY 

Q11- UPSC EPFO APFC में TRANSFER -

Q12- UPSC EPFO APFC में FACILITY 

Q13- UPSC EPFO APFC/AO-EO में Working days – 5 DAY WEEK

-3-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:

Q14- क्योों है The Officers adda नोंबर 1 और सबसे Trusted Platform, EPFO िे कलए ?
हम Selected EPFO Officers की team है , हमारी टीम द्वारा लास्ट
EPFO EXAM में सबसे ज्यादा वसलेक्शन वदए है वजसमे RANK 1, 2
और ऐसे Top 20 में 8, Top 50 में 22 और ऐसे 87 + वसलेक्शन वदए
है |
Q15- Last Result, EPFO में िैसा रहा ?
हम Selected EPFO Officers की team है , वजन्ोंने अभी हुए EPFO EO/AO में 320+
written में वसलेक्शन वदए थे और 87+ Final Selection वदए थे, इसके अलावा हमारे
Interview Batches से भी अन्य students के वसलेक्शन हुए थे हमने कई interview
batches arrange वकये थे और Interview PDF भी अपलोड करी थी, वजसमे Booklet-1
सभी students को दे खना चावहए वजसको Telegram Channel से डाउनलोड कर सकते
है या हमे Whatsapp 7408826666 करके भी प्राप्त कर सकते है , selection के बाद
हमने छात्ों के medical और documentation में भी हे ल्प करी , हम छात्ों की exam
prepration से उनकी joining तक साथ है और probation exam में भी उनको हे ल्प
करें गे |

Q16- UPSC EPFO APFC/AO-EO EXAM िो लेिर हमारी क्या स्ट्रे टेजी है ?

APFC/AO-EO EXAM की Strategy के तहत इस बार हमारा target 100+ Selection लाना है वजसको हम लोग आपके साथ
मेहनत करके achieve करें गे, वजसके वलए हमने 21000+ MCQ तैयार करें हैं , वजसमें ncert questions, back year
questions और new questions को अलग-अलग तरीकों से prepare कराया गया है जो आपकी तैयारी में बहुत help
करें गे, selected content है और practice के वलए PDF download कर सकते हैं content की PDF भी download कर
सकते हैं Video आप वजतनी बार भी दे ख सकते हैं website में भी login करके Test, video, PDF दे ख सकते हैं and
मोबाइल से भी access कर सकते हैं , आपको 2 login वमलते है mobile और website. Course को हमारी weekly तथा daily
schedule के according भी फॉलो कर सकते हैं , हमने working students के वलए , ssc की तैयारी कर रहे है students के
वलए , UPSC की तै यारी कर रहे students के वलए , या वकसी भी one day एग्जाम की तैयारी कर रहे है उनके वलए अलग
अलग strategy तैयार करी है , आप अपने according भी स्टर े टेजी हमसे discuss करके बना सकते है , इसवलए आज से ही लग
जाइये तै यारी में। आपको one material और selected content आपको वसफय अच्छे से मेहनत करनी है हम भी आपके साथ
आपको तै यार कराने के वलए हर प्रयास करें गे हमारे साथ लगे रवहए | ALL THE BEST

-4-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:

Q17- हमसे िैसे जुड़ सिते है और सोंििक िर सिते है ?


 Kindly Whatsapp on 7408826666
 Join our telegram – https://t.me/allexamstricks
COPY AND SEARCH IN TELEGRAM
IF DIRECT NOT OPEN (@allexamstricks)
 Our YouTube channel – c/TheOfficersadda
 Android App- ALL Exam Tricks

Q18- COURSE िैसे PURCHASE िर सिते है ?

 Course से जु डने के वलए आप अपनी detail हमें Whatsapp कर सकते हैं


7408826666 नं बर पर वजसके द्वारा हम आपको payment link, QR code, UPI
direct send कर सकते हैं , l और आपका Instant Course Active कर सकते हैं

 आप हमारा Android App “ALL Exam tricks” भी download करके उसमें अपने
course को choose करके भी direct payment कर सकते हैं वजसमें credit card,
debit card, QR, UPI, EMI कई सारे माध्यम आते हैं अपनी सुववधा अनुसार वकसी
भी माध्यम को चुन सकते हैं course purchase करने में वकसी भी असुकवधा के वलए
आप हमें इस 7408826666 नं बर पर whatsapp करें ।

Q19- VIDEO िैसे ACCESS िरना है


Kindly open your App  Choose your Batch Open Video Series option at front page  now open
subject wise folder for video watching

Course Home Page Subject Wise Playlist Video Classes List

[ Website और Android App िे माध्यम से आि Classes िो िई बार दे ख सिते है ]

-5-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:

Q20- TEST िैसे ACCESS िरना है |


Kindly open your App  Choose ‘Test Officer Series’  Open Test Series option at front page  now
open subject wise folder for Test practice

Test Portal Home Page Subject Wise Test Series Topic Wise Test Series

Q21- Study Booklet PDF or Test PDF िैसे DOWNLOAD िरना है

Kindly open your App  For Test PDF 


Choose ‘Test Officer Series’  Open Notes & PDF
option at front page  Now Download All test pdf

For Study Booklet PDF  Choose ‘APFC BATCH’ 


Open Notes & PDF option at front page  Now
Download All Study Booklet pdf

-6-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:

Q22- Subject wise क्या होना चाकहए आििा Target ? और उसिो achieve िरने िे कलए क्या होना
चाकहए आििी strategy ?
YOUR TARGETS FOR APFC/AO-EO

STRATEGY – TYPE 1

-7-
ALL Exam tricks
FAQs APFC/AO-EO EXAM
:- CLEAR ALL DOUBTS -:
STRATEGY – TYPE 2

STRATEGY – TYPE 3

STRATEGY – TYPE 4

-8-
ALL Exam tricks

-:IMPORTANT POINTS :-
 कसर्क Study Booklet िा print ले िे उसिो दो तीन बार िढ़ ले ना है |
 Board Material िेवल video समझने िे कलए है |
 study video आि कजतनी बार चाहे दे ख सिते है |

 ACCOUNTS & OTH. - राहुल सर के स्टर े टेजी वववडयो के अनुसार ही पढ़े


 LABOUR LAW, SOCIAL SECURITY & INDUSTRIAL RELATION- राहुल सर के
स्टर े टेजी वववडयो के अनुसार ही पढ़े
 CURRENT AFFAIRS/COMPUTER/ENGLISH VOCABS – Strategy में वदए करं ट
अफेयसय के समय में आप इन तीनो को आपस में interchange करके पढ़ सकते
है |

 GS1, GS2 – आप GS के कोई दो SUBJECT साथ पढ़ सकते हो , Sunday को


इसी Subject का Sectional Test दे ना है
 GS के Subject को इसी इसी क्रम से पढ़ना सुरु करे – Polity, Economy,
Science, Modern India….others
 Math/Reasoning/English - पहले इन Subject के वनचे वदए हुए Important
topics को जरूर पढ़ ले

Math/Reasoning English

 Speed and time  Syn/Ant


 Profit and loss  Spotting error
 Venn Diagram  One word
 Number system  Fill in the blanks
 volume & surface(cube, cuboid  Idioms and Phrase
etc)  Passage, direct indirect,
 Percentage  active passive
 Sitting arrangement  Also cover many
 Average additional topics
 Reasoning (mirror, blood  Back year questions
relation, direction)  Complete grammar
 Also cover many additional  Important vocabulary Pdf
topics
 Back year questions

-9-
ALL Exam tricks

-:STUDY BOOKLETS IN HINDI:-

.....many
more…..

-:STUDY BOOKLETS IN ENGLISH:-

.....many
more…..

21,000+ MCQ’s NCERT TEST SECTIONAL TEST FULL MOCK

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