MB 665

SOCIAL SECURITY & LABOUR WELFARE

Max. Marks: 100 External Assesment : 60 Internal Assesment: 40

The concept and scope of social security. Socail assistance and social insurance. Evolution of social security Law relating to social security Payment of wages Act, 1936 Minimum wages Act, 1948 Payment of Bonus Act, 1965 Workmans compensation Act, 1923 Maternity Benefit Act, 1961 Employees State Insurance Act, 1948 Provident Fund & Miscellaneous Provision Act, 1951 Gratuity Act, 1972 I.L.O. and social security The concept of labour wefare: definition, scope and objectives, welfare work and social work. Evolution of labour welfare, classification of welfare work, agencies for welfare work. Welfare activities of Govt. of India; welfare work by trade unions, Labour welfare work by voluntary social organizations. Labour administration: agencies for administrating Labour Welfare laws in India REFERENCES 1 Hallen 2 A.M.Sharma 3 I.L.O. 4 T.N.Bhagoliwal 5 B.D. Rawat

: Dynamic of Social Security : Social Security & Labour Welfare : Social Security : Economics of Labour & Social Welfare : Labour Welfareism in India Problems and Prospectus

All mentioned limits are subject to change by Amendments so you are advised to read news paper regularly.

CHAPTER-1

SOCIAL SECURITY
Definition- according to Lord Beveridge social security is an attack on 5 giants viz - want, disease, ignorance, squalor, idleness. Concept Related to the high ideals of human dignity & social justice. Modern Schemes take care of person womb to tomb Social Security has become a fact of life for million people in present century. It has widely influenced the economic & social policies of all the developed & developing countries. -Maintain an element of stability in stress. social security programmes are now increasingly being accepted as useful & necessary instruments for the protection & stability of the labour force. It is primarily an instrument of social & economic justice as it works for horizontal & vertical redistribution of incomes in society. Dynamic concept the contents of which change with social, economic & political system obtaining in a given country at a given time. According to Weber & Cohen social security is a controversial & dynamic subject with various facts- philosophical, theoretical, humanitarian, financial, administration, social, economic, political, statistical, medical & legal. Frid lander defines social security as a programme of protection provided by society against the contingencies of modern life. International Labour Organisation defines: The security that society furnishes, through appropriate organisation, against certain risks to which its members are exposed. These risks are essentially contingencies against which the individual of small means cannot provide by his own ability. To enjoy security, one must have confidence that the benefits will be available when required, and in order to afford security, the protection must be adequate in quality & quantity. It further emphasized the importance of comprehensive social security measures in the preamble to its constitution, in which it proclaimed protection of the worker against sickness, disease & injury arising out of employment, the protection of children, young persons & women, provisions for old age & injury. Objective is to protect poor. Aim of social security measures 1) Compensation of salary/ income 2) Restoration of sickness 3) Prevention of poverty

Access to social security has become a fundamental human right to which every individual is entitled as a member of society. This right has been embodied in the universal declaration of human rights adopted by the U.N. General Assembly in 1948. There are two main currents in the movement towards social security vizsocial assistance & social insurance. They are two sides of same coin. Qs 1) Social security should be adopted as Fundamental Right. Present your views in the class. 2) Social Security is pillar of the welfare of human society. Present your views in the class.

CHAPTER-2 SOCIAL ASSISTANCE AND SOCIAL INSURANCE It is one of the oldest form of Social Security - Laws of Ancient Hindu India, which contain many provisions for needy. - Zakat practice in Islamic societies in 7th century. - In Europe started with poor laws. - Social Assistance Schemes, which were established in a number of British colonies during this century, were based on Victorian new Poor Law. ILO as a service or scheme, which provide benefits to persons of small means as of right in amounts sufficient to meet minimum standards of need & financed from taxation, has defined social Assistance. Social Assistance represents the unilateral obligation of the community towards its dependent groups. The society or govt. provides it to the poor & needy individuals. The principal features of Social Security areI. The whole cost of the programming is met by the state & local units of govt. II. Benefits are paid as of legal in rights in prescribed categories of need III. In assessing need , a person` s other income & resources are taken into account IV. The benefit grant is designed to bring a person` s total income up to community determined maximum. Social InsuranceBeveridge defined social insurance as the giving in return of contribution, benefits up to subsistence level, as of right and without means tests, so that an individual may build freely upon it. Thus, social insurance Implies that it is compulsory and that men stand together with their fellows

This is based upon the principles of compulsory mutual aid. The principles elements of social insurance are: 1) Social Insurance is influenced by contribution, which are normally shared between employer & workers with perhaps state participation in the form of a supplementary contribution. 2) Participation is compulsory, with few exceptions 3) Contributions are accumulated in special funds out of which benefits are paid 4) Surplus funds are invested to earn further income 5) A person` s right to benefit is secured by his contribution record without any test of need 6) The contribution & benefit rates are often related to what the person is earning. Social Insurance is the largest single element in & foundation for the social welfare system of most countries. It grew out of voluntary insurance arrangements of the medieval European craft guilds & gradually institutionalised in many countries of the world. Elements of Social Insurance 1) Compulsory participation 2) Govt sponsorship 3) Contributory finance 4) Eligibility derived from contributions 5) Benefits prescribed in law 6) Benefits not directly related to contribution. Social Insurance principles have been widely adopted & today most industrial countries have comprehensive insurance schemes, which cover a large majority of the population & provide protection against a wide range of contingencies. QS 1) Present details element of Social Assistance definition of ILO in the class? 2) Discussion will be held on diffrence between Social Assistence & Social Insurance in the class.

CHAPTER-3 EVOLUTION OF SOCIAL SECURITY A study of social security (ILO 1984) describes three stages in its modern evolution. According to this view, the initial response was paternalistic private charity and poor relief was provided for the indigent, but harsh conditions & stigma made this form of provisions politically unacceptable.

As a reaction in second phase social insurance were developed based on compulsory premia that entitled the participants to pension & sick pay. In time these programs were extended to include wider coverage & contingencies. In the third stage the concepts of prevention & universality were introduced with the aim of maintaining & enhancing the quality of life. The evolution of different sets of policies that make up formal social secondary in individual countries was a result of changing the perceptions. Different configurations of interest groups influenced the directions of social security policies in industrial countries. Formal social securities policies differ markedly among industrial countries, depending upon the objectives of the govt. The essential test of a social security system is now well it pays benefits to the intended target groups. Thus in the case of income poverty, it is necessary to examine to what degree social securities provisions contribute to a reduction in poverty. For instance, when benefits are based on a set of contingencies, coverage may not include all the eligible poor. Developing countries have had a variety of experiences with formal social securities designed to provide for such contingencies as sickness, old age & unemployment. Since Governments typically face budget constraints, the choice of policy is of central importance. Governments need to evaluate the objectives of social security & decide whether to rely on public or private insurance. Further the governments ability to identify the vulnerable & needy as well as political & administrative constraints will determine the effectiveness of the system. Schemes in different countries The term social security was first officially used in the title of the U.S. legislationthe social security act of 1935. It appeared again in an act passed in New Zealand in 1938, which brought together a number of benefits. It was used in 1947 in the wartime document known as Atlantic Charter. The ILO was quick to adopt the term impressed by its value. It adopted a convention of minimum standards of social security in 1952, which has influenced a variety of social security measures all over the world. During 70` s tremendous progress in all the countries. In developing countries where the economy is already more structured the social securities. Institutions have become firmly established & occupy an extremely powerful & influential position & financially. Over the years more & more categories of population have been brought within the scope. White-collar workers, self-employed & certain categories of non-employed persons. In nearly all highly industrialised countries, cash benefits are now provided for old age, survivors, child support, maternity, unemployment, sickness, and disability. After II world war the member of countries operating social securities programs rose sharply. Great BritainThe works men compensation Act of 1897 made earnings related compensation, subject to limit, payable to those incapacitated as a result of an injury sustained at particular types of works. Compensation was paid directly by employers. Right of compensation can be established through courts. By 1906 such compensation

was available in most spheres of employment. In 1908 the old age pension actpension for people aged 70yr. In 1911-national insurance act introduced compulsory insurance against unemployment of workers in specific industries against medical costs & earning losts during sickness benefits as a right in return for contribution. They were financed by contributions made by those covered, their employees and an exchequer supplement 1934 unemployment act introduced a means tested benefit for those unemployed but not covered by national insurance. Apart from reduction in pension age of 65 for men 60 for women the period up to 2nd world war saw no significant further developments in social securities legislation. 1942 a detailed investigation into the existing social securities arrangements & suggestions for their reform were published. 1942 the famous Beveridge report fixed the public imagination & became an instant best seller in UK, USA. The main recommendation of report was that the disorganised system for the provision of social insurance & assistance that existed before the war should be replaced by a unified system. Most of the Beveridges recommendations were incorporated in the 1946 National Insurance (industrial injury) act. In 1966 the ministry of social security replaced the ministry of pensions, which got merged in 1968 with the ministry of health to create the department of health & social security. In 1971, the Joseph Plan focused attention on retirement pensions and in particular the role that ought to be played by the state at a time when occupational pension schemes were growing in their coverage. In 1971, a new means tested benefit, family income supplement was introduced. In 1975, the social security provisions act was passed. The act required a review of social securities benefits in March in the lights of inflation which has occurred and which is expected. The 1980 social security & housing benefits was administratively rationalised from April 1983, & in the first 8 weeks of sickness & injury statutory sick pay is paid in place of existing benefits. social security expenditure in the year ending March 1981 totaled 22.4 billion pounds around 10% of G.N.P. & 21% of total government, expenditure splits conveniently into 2 categories, 1st contributory benefits.2nd non contributory benefits The principal contributory benefits are retirement pensions. Unemployment benefit, widow` s benefit & sickness benefit. Non-contributory benefits - guardians allowance, industrial disablement benefit& child benefit. QS 1) What is the diffrence between UK and India insurance benefit? Discuss in the class. 2) What are the insurence services available for industrial workers? Discuss in the class.

USA Social security system was introduced in USA in 1935 as a programme of insurance protection for the workers & his family against complete loss of income through old age or death. In 1950social security programme was extended to cover farm & household employees & other persons. The social security programmes in the USA have been characterised by rapid expansion, significant improvements & widespread public acceptance. Four separate social service programme provided financial security to American workers & their families. 1) The old age & survivors Insurance (OASI) programme pays monthly cash benefits after a worker retires or dies 2) The disability insurance (DI) programme pays monthly cash benefits after a worker becomes disabled. 3) The Hospital Insurance (HI or Medical Part A) programme pays for hospital care of the aged & long-term disabled. 4) The supplementary Medical Insurance (SMI or Medical Part B) programme pays for part of costs of physician` s services , out patient hospital services, & other related medical health services, for voluntarily insured aged & disabled individuals. Health insurance (Medicare) covers persons over 65 years & persons who have been disabled for at least 2 years. The cash benefit provision of the programming is designed to replace partially the income that is lost when a worker retires, become severely disabled or dies. Unemployment Insurance programme are designed to provide cash benefits as a matter of right to unemployed workers who fulfill certain eligibility conditions. The workmen compensation legislation is the first form of insurance designed to provide cash benefits & medical care when a worker is injured in connection with his job & also monetary payments to his survivors if he is killed on the job. Unemployment compensation is administered by each state, with the federal government setting standards. The system is financed by a federal tax on pay rolls & by federal treasury. There are union negotiated welfare plans in the system of social security, which usually cover health insurance, supplementary benefits for retires, laid off employees and a host of other benefits, and financed by the employer. An estimated 40 million employees in USA are beneficiaries of private pension & welfare plans. Their rights are protected under the employee retirement income security act of 1974. Major legislatives changes are introduced in the USA social security programs on December 21 , 1977. It imposes higher social security contributions on more than 100 million contributors to the national retirement programme & on their employers. The legislation was designed to meet the financial problems facing the social security system. According to the new law, benefits amount would be on an average5% lower than those paid previously due to the revision of the benefit formula. However it provides improved benefit for retirees over 65 years of age who continue to work.

USSR Integral part of basic social policy. Articles 12 & 118 of constitution guaranteed employment & payment for their work according to its quantity & quality. Article 119 guarantees the citizens the right to rest & leisure. Article 120 guarantees the right to maintain in old age & also in sickness & disability. Article 121 gives right to education & 122 accords women to equal right with men in all sphere. This guarantee is because1) A higher rate of growth of the economy 2) The socialistic character of a state 3) The association of unions Social endurance extended to all workers & employees without exception. In 1992 - in new economic policy labour code was adopted. It provides medical help, benefits in case of temporary disablement, payment of additional benefit time feeding of children, help of destitute, payment of pensions in case of in capacity, old age and death of a wage earners. Main features of social insurance as followsA. Only employed persons are socially insured B. No provision for unemployment insurance C. Membership of a trade union is a pre condition for the availability of full insurance benefits D. Social Insurance schemes are organised, administered & supervise by trade unions E. Insurance premium is paid by employer only F. An investment for development in the field of production G. Dismissed employee get less benefit H. Dissatisfied worker can go to local court against union Worker has right to non-taxable old age pension at the age of 60 & women at the age of 55. The necessary service record is 25 years for men & 20 years for women. Average pension is 60 to 70 % of wages earned. All working women are entitled for maternity leave equivalent to 100% of their earnings for 56 days before & 56 days after confinement. Extended to 70 days in cases of multiple birth or complications. Free Medical Treatment & free primary education. Partly run by unions and by industrial entrepreneurs. Special provision for unmarried mothers & their children for protection. She receives special allowance for her childcare. Central Trade union Council controls all unions. Have separate insurance department. QS 1) What is the diffrence between UK and India insurance benefit? Discuss in the class. 2) What is the difference between USA & USSR insurance schemes? Discuss in the class.

3) What are the social insurance schemes are available in India? Present in the class salient features of any one scheme?

CHAPTER-4

PAYMENT OF WAGES ACT-1936

Application: Whole of India, Payment of wages to : (i) (ii) Person employed in any factory Persons employ upon any railway by a railway admn. or either directly or by contractor/sub contractor by a person fulfilling contract with railway administration. (iii) Persons employed in an industrial or other establishment sub sec. 5 empowers state Government to extend the application is subject to two conditions : (I) (II) Issue of 3 months prior notice of its extension to do so A Notification of the extension in official gazette.

Sub sec. 6 : Shall not apply where average wage for such wages period is exceed Rs.1600/- per month, wage period not exceed one month. Sec. 2 : Definitions (I) (Ib) (Ic) (II) Employment person : include the legal representative of a deceased employed person. Employer includes the legal representative of a deceased Factory Place under the Factories act. Industrial or other establishment means (a) Tramway service or motor transport engaged in carrying passengers, goods or both by road for hire on reward (b) air transport service other than armed forces (c) dock, wart or jetty (d) Intend vessel, mechanically propeller (e) mine, quarry or oil employer.

field (f) plantation (g) workshop or other establishment in which articles are produced, adapted or manufactured with a view to their use, transport or sale (a) establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals or relating to operations connected with navigation, irrigation or the supply of water or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on. Mines under Mines act, Plantation under Plantation Labour Act, prescribed means prescribed by rules, railway Admn. under Indian Railways Act. Wages : All remuneration whether by way of salary allowances or otherwise expressed in terms of money or capable of being so expressed which would if the terms of employment, express or implied were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment. Wages includes : (a) any remuneration payable under award settlement between the parties or order of a court (b) Remuneration in respect of Overtime work, holidays or any leave period, (c) any additional remuneration payable under the terms of employment, (d) any sum or termination of employment (e) any sum to which the person employed is entitled under any scheme trained under any law for the time being in force. Wages does not include : (1) any bonus which does not form part of remuneration (2) value of any house accommodation or supply of light, water, medical attendance (3) contribution paid by employer to P.F. fund (4)Traveling allowance (5)any sum paid to defray special expenses (6) any gratuity.

Sec. 3 : Responsibility for payment of wages : - Employer or manager under factories act, person who has control and supervision, in railways, railway admn. Sec. 4 : Fixation of wage period : Responsible person will fix shall not exceed one month. Sec. 5 : Time of payment of wages If no. of employees less than 1000 than 7th otherwise lo th day. Sec 6 Wages to be paid in current coins or currency notes. Sec. 7 Deductions No deduction can be made only authorized under 7(1) Permissible deductions : Fines, absence from duty, for damages for loss of goods, for house accommodation supplied by employer, recovery of advance. Deduction for such services provided by the employer as the state government or authorize officer has specified deductions may be made for recovery of loans, PF contribution to National defence fund approved by Government, payments to cooperative societies, LIC provided person has given personal authorization, payment of contribution to union registered. ESI scheme /other Government insurance scheme if any. Permissible total deduction For cooperative societies up to 75% of wages in any other case 50% of wages. Fines : 3% of wages is limit, Proper notice is to given and exhibit. Sec.14 Inspectors : 3 kinds (1) Inspector of factories (2) State Govt. can appoint (3) State Govt. can appoint labour inspector. Powers of Inspectors :

Make examination and enquiry, enter, inspect and search any premises, take assistance which they think necessary, supervise the payment of wages, notice for producing record and registers, seize or take copies of register. Sec. 14 : Facilities to be afforded to Inspectors Every employer shall afford all reasonable facilities for making an entry, inspection, supervision or inquiry under this act. Sec. 15 : Authority to hear claims : State Government to appoint : Presiding officer of labour court or tribunal or commissioner or civil judge of a court. Presentation of application Application in following claim can be made to the authority : (i) Any contrary deduction, (2) Delayed payment. By employed person himself, any legal practitioner authorized in written on his behalf. Any official of registered trade union authorized in writing any inspector under this act. Within 12 months of deduction application has to made afterwards he has to explain reason for delay. Authority heard both parties and make enquiry and give direction - in deduction compensation Rs.25/ limit/compensation 10 times of deduction or delay wages. Recovery of amount any amount directed to be paid may be recovered (i) if the authority is Magistrate, by the authority as if it were a five imposed by him as magistrate (ii) if authority is not a magistrate, by any magistrate to whom authority has made application. Scope of jurisdiction under sec. 15 is limited in deciding claims. Sec. 16 : Single application in respect of claims from unpaid group from some establishment, same deduction and same wage period. Sec. 17 Appeal : Employer can make an appeal within 30 days in lower court of area. 17A : conditional attachment of property of employer or other person responsible for payment of wages. 18 : Power of authorities appointed under section 15 have all powers of civil court (a) taking evidence enforcing the attendance of witnesses (c) compelling the production of documents.

Sec. 13 : Maintenance of registers and records in prescribed forms : (1) particulars of persons employed by him, (2) the work performed by the persons (3) the wages paid (4) receipts (5) any other particulars. Sec. 20 : Penalty for offences under the Act - fine from Rs.200/ to 1000/Sec. 21 : Procedure in trial of offences before any court - shall take cognizance of a complaint against any person for an offence the following conditions must be fulfilled. (i) any application in respect of the facts constituting offence has been presented under sect. 15 (ii) application must have been granted wholly or in part (iii) authority/appellate court granting the application must have sanctioned the making of the complaint for such offence. Sec. 22 : Bar of suit : any court shall not entertain a suit for recovery 22 A- Protection of action taken in good faith legal proceeding shall not lie against the govt./any officer. Sec. 23 : Contracting out: Any contract shall be null and void for deprive of wages. Sec. 24 : Application of Act to railways, mines soil field : empowers Central Govt. Sec. 25 : Display by notice of Abstract of the Act. Sec. 25 A : Payment of un-disbursed wages in cases of death of employed person to nominee, deposit with prescribed authority. Sec. 26 : Rule Making power : Empowers state Govt. to make rules. QS 1) Prepare a wage payment register and present your design in the class. 2) Prepare a wage slip design and present in the class.

CHAPTER - 5

PAYMENT OB BONUS ACT 1965

Bonus is cash payment in addition to wages as stimulus to extra work and efficiency by labor. But to enable the labor to earn bonus the following conditions are required: 1 Wages fall short of the living standard, and

2 the industry makes huge profit part of which are due to the contribution, which the workmen make in increasing production. The payment of bonus became a settled principle of industrial law. Supreme Court also affirmed Available Surplus formula or full bench formula. OBJECT An act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith. Amended preamble An act to provide for the payment of bonus to persons employed in certain establishment and for matters connected therewith. The payment of bonus was therefore delinked from profits and productivity and minimum bonus was restored. EXTENT AND APPLICATION (sec.1) Act came into force on 29-5-1965. It, even for a single day is sufficient to attract the provisions of the applies to every factory and to every other establishment in which 20 or more persons are employed on any day during an accounting year. The employment of 20 or more persons in an establishment for a day in preceding 12 months. EXEMPTED EMPLOYEES (sec.32) The act shall not apply to the following classes A employees employed by L.I.C. of India, B seamens as defined in Merchant Shipping Act, 1958 C employees registered under the Dock Workers (Regulation of Employment) Act 1948 and employed by registered employers. D employees engaged in industry under central Govt. or state Govt. or a local authority. E employees employed by(i) The Indian Red Cross Society (ii) Universities and other educational institutions, (iii) Institutions established for non-profit purposes e.g. hospitals, chambers of commerce and social welfare institutions. F employees employed through contractors on building operations G employees employed by R.B.I. H employees employed by (i) I.F.C.I. (ii) Any Financial corporation established under the State Financial Corporation Act, 1951 (iii) The Deposit Insurance Corporation (iv) The Agriculture Refinance Corporation (v) the U.T.I. (vi) any other financial institutions being an establishment in public sector

(vii) employees employed by inland water transport establishment operating on routes passing through any other country POWER OF EXEMPTION (sec.36) if it will not be in public interest to apply all or any of the provisions, appropriate Govt. can exempt by notification in official Gazette APPLICATION OF CERTAIN LAWS NOT BARRED (SECS39 & 35) The provisions of this act shall be in addition to Industrial Disputes Act, 1947 or any other corresponding law relating to investigation and settlement of industrial disputes in force in a state. Noting contained in this act shall be deemed to affect the provisions of the Coal Mines, Provident Fund and Bonus Act,1948 or of any scheme made their under.(sec.35) However, their is nothing in the act to preclude employees from entering into agreement with their employer for granting them an amount of bonus under a formula which is different from the formula under the act provided that the agreement protects the right of the employees to receive minimum bonus under sec10 of the act. DEFINITIONS Accounting Year (sec.2 (i)): Accounting year means(i) in relation to a corporation, the year ending on the day on which the books and accounts of the corp. are to be closed and balanced (ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before in annual general meeting. (iii) In any other case- (a) the year commencing on the first day of April; or (b) if the account of any establishment maintained by the employer thereof are closed and balanced on any day other than the 31st march Appropriate Government (sec.2 (5)): in general State Govt., Central Govt. for Central Govt. own companies. Award ( sec. 2 (7) ): A final determination of any industrial disputes by any labour court, Industrial Tribunal, National Tribunal constituted under Industrial Disput Act,1947 Employee ( sec.2 (13) ): means any person(other than an apprentice) employed on a salary or wage not exceeding Rs.3500/ per mensem in any industry to do any skilled or unskilled, manual, supervisory, managerial, administrative, technical or clerical work on hire or reward, whether the terms of employment expressed or implied. An employee who is engaged in any work or operation, which is incidentally connected with the main industry of the employer, would be a workman. Definition does not exclude casual or part time worker.

Employer (sec.2 (14)): Employer includes (a) the occupier of the factory, including agent of such owner, the legal representative of deceased owner, manager of a factory declared under the factory act (b) Manager who has ultimate control over the establishment, managing director or managing agent Establishment (sec2 (16) (15) (3)): 1 Establishment in public sectormeans an establishment owned controlled or managed by (i) a Govt. company defined in the companies Act, 1956 (ii) a corp. in which not less than 40% of its capital is held by-(a) the Govt. (b) the R.B.I. (c) a corp. owned by the Govt. or the R.B.I. 2 Establishment in private sector- means any establishment other than public sector. (sec.2 (15)) An establishment includes departments, undertakings and branches, if (i) separate balance sheet is prepared then treated as separate. (ii) that, immediate before the commencement of that year the branch, undertaking or the dept was not treated as the part of the establishment. Application of the Act to establishments in public sector in certain cases (sec.20) Public sector & private sector are competing in an accounting year and income from such sale and service or both is not less than 20% of the gross income of establishment in public sector for that year, then the provision of this act shall apply in relation to such establishment in public sector as they apply in private establishment. Salary or wage ( sec.2 (21 ) )- means all remuneration ( other than remuneration in respect of overtime ) capable of being expressed in terms of money which are paid in fulfillment of conditions of employment by whatever name called, but does not include(i) any other allowance which the employee is time being entitled to; (ii) the value of any house accommodation or the supply of light, water, medical attendance, any supply of food grains on concession or other articles (iii) any traveling concessions; (iv) any bonus (including incentive, production and attendance bonus) (v) any contribution paid or payable by employer to any pension fund, provident fund, or the benefit of employees under any law); (vi) any commission payable to employee; where any employee is given in lieu of whole and part of the salary or wages payable to him, free food allowance or free food by his employer, such allowance shall be deemed to part of salary or wages. Bonus payable under Act is wages and is not liable to attachment.

Computation of bonus under this act - The Act requires 60% (67% in case of a foreign company ) of the available surplus to be allocated for payment of bonus. First calculate gross profit as first schedule, if the company is banking company then according to second schedule. From the gross profit are to be deducted such as depreciation and development rebate or investment development allowance, direct taxes and prior charges. The figure so arrived at is available surplus and 60% of there of is allocable surplus for payment of bonus. 1 The net profits: The starting point for determination of bonus under the Act is the net profit shown in the profit and loss account. (a) Balance sheet and profit and loss account of corporations and companiesBalance sheet must be certified by certified C.A.. It shall be necessary for a company. Any union asked clarification then employer has to provide the same. In case of doubt, Court may take necessary step as it may think fit during investigation. (b) Audited accounts of banking companies (sec.24): Under the dispute court shall not permit for challenging the duly audited balance sheet of any bank. ( c) Audit of accounts of employers, not being corporations or companies (25): Where any dispute has been referred and when said authority find that balance sheet is not properly audited by any such auditor, it may by order direct the employer to get to get his accounts audited within such time by such auditor as it thinks fit. If employer get failed to comply with, to the provision of penalty vide sec28 , get the accounts audited by the auditor they think fit and charges shall be borne by the employer or in default in payment charges shall be recovered in the manner provided in sec21. Computation of gross profits (sec4): (a) In the case of banking company to be calculated in the manner specified in the first schedule (b) In any other case may be calculated in the manner specified in the second schedule Available surplus (sec.5 & 6) The available surplus in respect of any accounting year shall be the gross profits for that year after deducting from the gross profits following sums- depreciation, development rebate or investment development allowance, direct taxes (the income tax, the super profits Act, The companies (profits) surtax Act). Allocable surplus (sec.2(4) ): means (a) in relation to an employer, being a company(other than banking company)which has not made the arrangements prescribed under the income tax Act for the declaration and payment with in India of the dividends payable out of its profits in accordance with the provisions ofsec194 of the income Tax Act,67% of the available surplus in an accounting year. (b) In any other case, 60% of such available surplus.

Amount of bonus (sec10): The Act provides for the payment of bonus out of the allocable surplus. If no amount is left then minimum 8.33% and maximum is 20%. Customary puja or interim bonus (sec7): Where in any accounting year aforesaid bonus has been paid the employer shall be entitled to deduct amount of bonus so paid from the amount of bonus payable to the employee in the accounting year. Payment of bonus in respect of employee drawing above Rs.2500 Where the salary or wage of an employee exceeds Rs. 2500 per mensem, the bonus payable to such employee shall be calculated as if his salary or wage were Rs. 2500 per mensem. Set on and set off of the allocable surplus (sec15): If amount exceeds then maximum limit is 20% and rest amount is set on for utilization in future. If amount is not available for payment necessary amount shall be set off from succeeding accounting year as in accordance with 4th schedule. Grant of bonus under different formula(sec34& 34A): Employees employed in any establishment may enter into an agreement for bonus under different formula but minimum and maximum limit is to be observed. Eligibility for bonus (sec8): provided employee has worked in that year 30 days. Computation of number of working days (sec14): An employee shall be deemed to have worked in an establishment in any accounting year also on the days on which(i) laid off days (ii) leave with wages (iii) absent due to temporary disablement caused by accident arising out of and in the course of employment (iv) maternity leave with wages Disqualification for bonus (sec8): If he is dismissed from services for (a) fraud (b) violent behavior while on the premises of establishment (c) theft, misappropriation, or sabotage of any property of the establishment. When deduction permissible(sec13&18): ( i ) When employee has not worked for all the working days in any accounting year, proportionate reduction. (ii) Where an employee is found guilty of misconduct causing financial loss to the employer

Time limit for payment of bonus(sec19):within a month from the date on which the award becomes enforceable, In other case, the bonus shall be paid within 8 months from the close of the accounting year. Govt. can extend the 8 months period but not beyond 2 years. Applicability of bonus to establishments newly set up (sec16): (a) In the first 5 accounting years year in which the employer derives profit from such establishment such bonus shall be calculated but without applying set on and set off of allocable surplus. (b) In the 6th&7th accounting years (i) for the 6th accounting year Set on or set off, as the case may be, shall be made in the manner illustrated in the fourth schedule taking in to account the excess or deficiency of the allocable surplus for set on or set off in respect of the fifth and sixth accounting years; (ii) For the 7th accounting year- fourth schedule taking into account of the allocable surplus in respect of 5th,6th,7th accounting years. (iii)From the 8th accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or rendered the services. Further an employer shall not be deemed to have derived profit in any accounting year unless: (i) he has made provision for that years depreciation to which he is entitled under the Income Tax Act (ii) the arrears of such depreciation and losses incurred by him in respect of the establishment, for the previous accounting years have been fully set off against his profits. Recovery of bonus due from an employer (sec21): Employee, or any authorized person, or in case of death of employee his heirs may make an application to the appropriate Govt. for the recovery of money due to him. If the appropriate Govt. is satisfied that any money is so due, it shall issue a certificate for that amount to the collector who shall proceed to recover the same in the same manner as an arrear of land revenue. Every such application shall be made with in one year from the date on which the money became due to the employee. In late case employee shall be called to give explanation. Reference of disputes (sec22) Where any dispute arises between an employer and his employees with respect to the bonus payable under this act or with respect to the application of this act to an establishment in public sector, then such dispute shall be deemed to be an industrial dispute with in the meaning of the Industrial Disputes Act,1947. Maintenance of registers and records (sec26) Rule 4 of the payment of Bonus Rules,1975 provides that every employer shall prepare and maintain the following registers-

( i ) a register showing the computation of the allocable surplus in form A; (ii) a register showing the set on and set off of the allocable surplus in form B; (iii) a register showing details of the amount of bonus due to each of the employees and deductions and the amount actually disbursed in form C. Inspectors (sec27)Appropriate Govt. may appoint such persons as it thinks fit to be inspectors for the purposes of this act and may define limits with in which they shall exercise jurisdiction. Powers of inspector (a) ask for information (b) at any reasonable time enter any establishments, examine registers, accounts, and other document related to the employment of persons, can examine an employee in the establishment. (c) Take extract from any book register maintained in relation to the establishment (d) Exercise such other powers as may be prescribed. Penalties (sec28) Fails to comply with the direction or requiting, punishable with imprisonment for a term which may extend up to six months or with fine which may extend to Rs.1000 or with both. Offences by the companies (sec29) Person who has ultimate control over the affairs shall be liable for any offence No such persons shall be punishable if he proves that the offence has been committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. Cognizance of offences No court shall take cognizance of any offence punishable under this Act, save on complaint made by or under the authority of appropriate Govt. No court inferior to metropolitan Magistrate or a Magistrate of a first class shall try any offence punishable under this Act. Protection of action taken under the Act (sec31): No legal proceeding shall lie against the Govt. or any officer for anything which is to be done in pursuance of this Act. QS 1) Whether employer should pay more money exceeding 20% bonus and some % in form of exgretia? Discuss in 4 groups and present outcome in the class. 2) II Day ABC company earned a huge profit in 2003 and distributed 20% bonus + 2% exgretia.

In the year 2004 company profits became nil but company distributed 20% bonus for its image in international market. This year company has gone in losses and union has demanded 20% bonus. 2003 was the sixth year of the company. Discuss in 4 groups and present in the class.

CHAPTER- 6

MINIMUM WAGES ACT-1948

Object: To secure the welfare of works in a competitive market by proceeding for a minimum limit of wages in certain employments. Sec 1 Application extends to the whole of India applies to the employments which are enumerated in schedule. Appropriate Govt. has power to extend and cover any other employment. Sec. (2)(a): Adolescent completed 14 years of age and below 18 years. (b) Adult completed 18 years of age. Appropriate Govt. Means under the authority of central Govt. or a railway admn. in relation to mine, oil field, parts Central Govt. (bb) Child who has not completed 14 years. Competent Authority The authority appointed by Appropriate Govt. by notification in official gazette to ascertain from time to time the cost of living index number applicable to the employees employed in Scheduled employments specified in such notification. Cost of living index number in relation to the employees in any schedule employment in respect of which Minimum wages rates have been fixed mean the index number ascertained and declared by the comp. authority by notification in

official gazette to be the cost of Living Index number applicable to employers in such employment. Employer : means any person who employees directly or through authorised person, one or more employees in any scheduled employment in respect of which in rate of wages have been fixed under the Act. Employer includes Manager under the Factories Act, in Govt. appointed authority for supervision of employers, under local authority person appointed by such authority, if no person than Chief Executive officer. Any other person responsible to owner for supervision and control. Managing agent is an employer. Prescribed means prescribed by rules made under this act. Scheduled employment : Employment specified in schedule or any process or branch of work forming part of such employment. Schedule is decided in 2 parts. Part I ( I ) Employment in any woolen carpet making or shawl weaving establishments rice mill, floor mill, dal mill tobacco (including bidi making) manufactory Plantation- any estate use for growing cinchona, rubber, tea or coffee employment in any oil mill Employment under any local authority. Employment on the construction or maintenance of roads or in building operation Stone breaking and stone crushing incidental to the mining operation but the stone breaking and crushing which are carried on in mines are not included. The min. wages fixed for the employment of stone breaking and crushing will not apply to the operation of quarrying Sahabad state. Employment in any lac manufacturing Mica works Public motor transport Employment in tanneries and leather manufactory. Part II Employment in agriculture, any form of farming including the cultivation and tillage of the soil, dairy farming, the production, cultivation growing and harvesting of any agriculture or horticulture commodity, the raising of live stock, bees or poultry and any practices performed by a farmer or on a farm as incidental to or in conjunction with farm operation (including any forestry or timbering operations and the preparation for market and delivery to storage or to market or to carriage for transportation to market of farm produce. Wages : All remuneration, capable of being expressed in terms of money, which would if the terms of the contract of employment express or implied were full filled be payable to person employed in respect of his employment or of work done in such employment and includes HRA. wages do not include : the value of

any house accommodation, supply of right, medical attendance or any other amenity or any service excluded by general or special order of the app. Govt. any contribution paid by the employer to any pension fund or PF or under any scheme of social insurance. any traveling allowance or the value of any traveling concessions. any term paid to the person employed to defray special expenses entailed on him by the nature of his employment. any gratuity payable on discharge. Employee Any person who is employed for hire or reward to do any work, skilled or unskilled , manual or electrical in a schedule Employment in respect of Minimum rate of wages has been fixed. It includes An out work to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented finished repaired, adopted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out worker or in some other premises not being premises under the control and Management of that other person. An employee declared to be an employee by the appropriate Govt. Wage structure Certain principles on which wages are fixed have been stated by the supreme court: First principle is that there is a minimum wages, which in any chance must be paid, irrespective of the extent of profits, the financial condition of the establishment or the availability of workmen on lower wages. This minimum wages is independent of the kind of industry and applied to all alike big or small. It sets the lowest limit below which wages cannot be allowed to sink in all humanity. The second principle is that wages must be fair, that is to say, sufficiently high to provide a standard family with food, shelter, clothing, medical care and education of children appropriate for the workmen but not at a rate exceeding his wage earning capacity in the clans of establishment to which he belongs. A fair wages is thus related to the earning capacity and the workload. It must however, be realised that fair wage is not living wage by which is meant a wage which is sufficient to provide not only the essential above mentioned but a fair measure of frugal comfort with an ability to provide for old age and evil days. Fair wage lies between minimum wage, which must be paid in any event, and the living wage, which is the goal. Minimum wages: It is not defined in the act because it would not be possible to lay down a uniform min. wages for all industries throughout the country on account of different and having conditions prevailing from industry to industry and from one part of the country to another.

Components of a minimum wages: The Tripartite committee of the Indian labor conference (1957) accepted the following five norms for the fixing of minimum wages. 1 In calculating the minimum wages, the standard working class family should be taken to consist of 3 consumptions unit for one earner, the earnings of workmen, children and adolescents should be disregarded. 2 Minimum food requirement should be calculated on the basis of a net intake of calories, as recommended by Dr. Ay Kroyd for an average Indian adult of moderate activity. 3 Clothing requirements should be estimated at per capita consumption of 18 years p.a., which would give for the average workers family of 4 a total of 72 years. In respect of housing, the rent corresponding to the minimum area provided for under Govt. Industrial housing scheme should be taken into consideration in fixing the minimum wages. Fuel, lighting and other miscellaneous items of expenditure should constitute 20% of the total minimum wages. Keeping in view the socio economic aspect of the wage structure one more component to minimum wage should be added, namely, children education, medical requirement, minimum recreation including festivals/ ceremonies and provision for old age, marriages etc. should further constitute 25% of the total minimum wage. Fair wages: There is a difference between minimum wages and fair wages. In case of fair wages, besides the principle of industry cum region, the companys capacity to bear the financial burden must receive due consideration. Sec .3: Fixation of Minimum rates of wages Lay down that the appropriate Government shall be empowered to fix Minimum rates of wages in the prescribed manner. Sub. Sec. (1A). appropriate Govt. may refrain from fixing minimum rates in respect of and schedule employment in which them are in the whole state less than 1000 employees engaged in such employment. If number exceed can fix at any time. Sub sec. (2) provide Government may fix (a) minimum rate of wages for timework (b) minimum rate of wages for piecework a minimum of remuneration to apply in case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis which is known as a guaranteed time rate. a minimum rate in respect of overtime. Minimum rate of wages shall not apply in the following cases during the period in which proceeding is pending and the award made therein is in operation or where the notification is issued during the period of operation of an award during that period where in respect of an industrial dispute relating to rate of wages payable to any of the employees employed in a schedule employment any proceeding is

pending before a tribunal or National Tribunal or before any like authority (ii) where an award made by such authority as aforesaid is in operation (iii) a notification fixing minimum rates is issued during the pendency of such proceeding or the operation of the award. In fixing or revising minimum rates : (a) different minimum rates of wages may be fixed for (1) different schedule employments (2) different classes of work in the same schedule Employment (3) adults, adolescents, children and apprentices (4) different localities. (b) Minimum rates of wages may be fixed by one or more of the following wage periods namely : (1) by the hour (2) by the day (3) by the month (4) by such other longer wage period as may be prescribed. Sec. 4 : Minimum rates of wages may consist of : (1) Basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the app. Govt. may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such works. ( II ) A basic rate of wages with or without the cost of living allowance and the cost value of concession in respect of supplies of essential commodities at concession rate. In all-inclusive rate allowing for the basic rate, the cost of living allowance and cash of the concessions if any. Sec. 5 Procedure for fixing and revising minimum wages Appropriate Govt. shall either : (a) appoint committees to hold enquiries and advice in respect of revision (b) by notification in official gazette, publish its proposal specify a date not less than 2 months, the proposal will be taken into consideration. After consider the advice of committee, the app. Govt. by notification fix or revise the rates which shall come in-force after the expiry of 3 months where the app. Govt. proposal to revise the minimum rates under 56(i)(b) shall consult Advisory board also. Sec. 7 Advisory Board coordinating the work of committee, advising app. Govt. in the matter of revision. Sec. 8 Central Advisory Board Central Govt. to appoint a board for advising central and state governments and coordinating the work of Advisory board. Sec. 9 Composition of committees Nominated by app. Govt. employer and Employees representative of Schedule Employment industries, Shall be equal in number app. Govt. shall appoint a chairman who will be an Independent person.

Sec. 10 : Correction of errors Govt. may at any time by notification correct clerical or Arithmetical errors. Sec. 11 wages in kind : Minimum wages under this act shall be paid cash. If app. Govt. thinks it appropriate to pay a part of Minimum wages in kind may do so by notification. Sec. 12 Payment of Minimum rate of wages : If a notification under sec. 5 than employer has to pay revised wages. Sec. 13 ; Fixing hours of Normal working day : App. Govt. may Fix the number of hours, which shall constitute a normal working day with one or more specified intervals. Provide for day of rest in every period of 7 days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such day of rest. Provide for payment for work on a day of at a rest not less than the overtime rate. Sec. 14 : Overtime : Payment for extra additional hrs. worked, Sec. 59 Factory Act Double rate. Sec. 15 : Wages of workers who work for less than normal working day entitled for full day payment unless (i) failure to work by unwillingness (ii) in other case as may be prescribed. Sec.16 : Wages for two or more classes of work where any employee does 2 classes of work at different rates he will get proportionately on base of hours. Sec.17 : Minimum time rate wages of piece work the employer to pay piece rated workmen wages at not less than the minimum rate of wages. Sec 18 : Maintenance of registers and records : As prescribed, Notice in the prescribed form, wage slip to workers, wage register as prescribed. Sec. 19 : Inspectors : App. Govt. can appoint through notification, also define local limits of Inspector. Powers of Inspector : Enter in premises at reasonable hrs., examine registers, notice board, examine any person, can obtain information, seize records. Sec.20 claims : App. Govt. can appoint an authority and decide for claims through notification to hear.

Who can apply : Employee himself, his legal practitioner, union representatives, and inspector. Applications for claim : within 6 months, Application may be admit after 6 months. after satisfying authority with a genuine reason. For delay, after hearing both side. Authority can give direction of payment with compensation not exceeding 10 times of default payment. He possesses all powers of civil court and this direction cannot be challenged in any other court. Sec. 21 : Single application in respect of a number of employees. Sec. 22 : Penalties for certain offences fine Rs.500/- 6 months imprisonment. Contravention of Sec.132 Minimum Wages not paid. Sec. 22 A : General provisions for punishment of other offences Rs.500/=fine for contravention of act 2 rules. Sec. 22 B. Cognizance of offences No court shall take cognizance of a complaint against any person for an office. Unless an application in respect of facts constituting such offence has been present under sec. 20 has been granted and app. Govt./officer authorized has sanctioned for making the complaint. (b) except on a complaint male by or with the sanction of an Inspector. Sec. 22 B (2) : Provides that no court shall take cognizance of an offence under 22-B. Unless complaint there of is made within one month of the grant of section under 22-A. Unless complaint there of is made within six month of the date of offence. Sec. 22 C Offences of companies Responsible is In charge, any body corporate and includes a firm or other association of individuals, Director Sec. 22 D Payment of un-disturbed amount due to employees Due amount shall be deposited with prescribed authorities on account of death non-availability of where about of employee. Sec. 22 E Protection against attachment of assets of employer with Govt. any amount has to deposited with app. Govt. Sec. 22 F Application of payment of wages act, 1986 to schedule employments App. Govt. is empowered to apply any of provisions of above act with notifications. Inspector will also deemed as enforcement authority of said provisions.

Sec. 23 Exemption of employer from liability in certain cases Employer can file complaint against actual offender, both shall be tired, on actual complaint. Employer has to proof actual offence of the offender. Sec. 24 Bar of suits Any other court has no jurisdiction to entertain any suit. Sec. 25 : Contracting out Any contract reduce min. wage shall be null and void. Sec. 26 : Exemptions and exceptions App. Govt. has been given powers to direct that provision of this act shall not apply to wages payable to disabled employers. Due to special reasons exemption may be granted. Sec. 27 : Power of state Govt. to add to schedule. Sec. 28 : Power of central Govt. to give direction to State Govts. Sec. 29 : Power of central govt. to make rules. Sec. 30 : Power of appropriate Govt. to make rules. Sec. 30 A Rules made by the Central Govt. to be laid before parliament Sec. 31 : Validation of fixation of certain minimum rates of wages. QS 3) 1) search the following case and present in the class A Piece-rated employees cannot be deprived of minimum wages as fixed and/or revised under the minimum wages Act B When disability of an employee is incurred during his employment, his minimum wages cannot be reduced C Minimum wages Act will be applicable on the weavers who, after lifting cotton from the petitioners center, return the finish product to the centre

CHAPTER-7

WORKMAN`S COMPENSATION ACT-1923

Workmen` s compensation act passed in March 1923 put into force on July 1, 1924 Object of the Act : Act is to impose an obligation upon employers to pay compensation to workers for accidents arising out of and in the course of employment. The scheme of the act is not to compensate the workman in lieu of wages but to pay compensation for the injury caused. Applicability The act extends to the whole of India and applies to any person who is employed, otherwise than in a clerical capacity, in railways, factories, mines, plantations, mechanically propelled vehicles, loading and unloading work on a

ship, construction, maintenance and repairs of roads and bridges, electricity generation, cinemas, catching or training of wild elephants, circus, and other hazardous occupations and employments specified in schedule II to the act. Under sub section (3) of section 2 of the act, the state govt are empowered to extend the scope of the act to any class of persons whose occupations are considered hazardous after giving three months notice in the official gazette. The act, however, does not apply to members serving in the armed forces of Indian Union, and employees covered under the provisions of the employees state insurance act, 1948 as disablement and dependents benefit is available under this act. In order to be a workman within the meaning of section 2(1)(n) of the workmen` s compensation act, firstly, a person should be employed; secondly, his employment should not be of a casual nature; thirdly, he should be employed for the purposes of the employer` s trade or business; and lastly. The capacity in which he works should be one set out in the list in schedule II of the act. Payment of compensation: The compensation has to be paid by the employer to a workman for any personal injury caused by an accident arising out of and in the course of his employment (section 3). In schedule I of the act, the percentage loss of earning capacity or disablement caused by different types of injuries has been listed. However, the employer will not be liable to pay compensation for any kind of disablement (except death) which does not continue for more than three days, if the injury is caused when the workman was under the influence of drink or drugs or willfully disobeyed a clear order or violated a rule expressly framed for the purpose of securing the safety of workmen or willfully removed or disregarded a safety device. A workman is also not entitled for compensation, if he does not present himself for medical examination when required or if he fails to take proper medical treatment, which aggravates injury or disease. In case it is not fatal, an employment injury may cause any injury resulting in (1) permanent total disablement (2) permanent partial disablement (3) temporary disablement. The rate of compensation in case of death is an amount equal to 50% of the monthly wages of the deceased workman multiplied by the relevant factor or an amount of Rs 50000 whichever is more. Where permanent total disablement results from the injury, the compensation will be an amount equal to 60% of the monthly wages of the injured workman multiplied by the relevant factor or an amount of Rs 60000 whichever is more. Where the monthly wages of a workman exceed 2000 rupees, his monthly wages for the above purposes will be deemed to be 2000 rupees. Where permanent partial disablement results from the injury, if specified in part II of the schedule I, such % of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the %of the loss of earning capacity caused by that injury. The % loss of earning capacity depends on the loss of limbs and varies from 1 to 90 %. In the case of an injury not specified in schedule I, such % of the compensation payable in the case of permanent total disablements is proportionate to the loss of earning capacity (as assessed by the qualified

medical practitioner) permanently caused by the injury. Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount, which would have been, payable if permanent total disablement had resulted from the injuries. In case of temporary disablement, a half- monthly payment of the sum equivalent to 25% of monthly wages of the workman has to be paid. Half-monthly payment as compensation will be payable on the 16th day from the date of disablement. In cases where the disablement is 28 days or more, compensation is payable from the date of disablement. In other cases, the same is payable after the expiry of a waiting period of 3 days. Thereafter, the compensation will be payable half-monthly during the disablement or during a period of five years whichever period is shorter. There is also a provision for commutation of half-monthly payments to a lump sum amount by agreement between the parties or by an application by either party to the commissioner if the payments continue not for less than 6 months. Deduction can be made from any lump sum or half-monthly payments to which the workman is entitled the amount of any payment or allowance which the workman has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half monthly payment, as the case may be. It is provided that all cases of fatal accidents should be brought to the notice of the commissioner for workmen` s compensation and in case the employer admits the liability the amount of compensation payable should be deposited with him. Where the employer disclaims the liability for compensation to the extent claimed, he has to make provisional payment based on the extent of liability which he accepts, and such payment must be deposited with the commissioner or to be paid to the workman as the case may be. In such cases Commissioner may, after such enquiry as he thinks fit, inform the dependents that it is open to them to prefer a claim and may give such other information a he thinks fit. Advances by the employers against compensation are permitted to the extent of an amount equal to 3 months wages. The commissioner is also empowered to deduct an amount not exceeding Rs 100 from the amount of compensation in order to identify the person who incurred funeral expenses. The employer is also required to file annual return giving details of the compensation paid, number of injuries and other particulars. The amount deposited with the Commissioner is payable to the dependents of the workmen. For the purposes of the Act dependents have been grouped into 2 classes (1) those who are considered dependents without any proof (2) those who must prove that they are dependents. The first group includes a widow, a minor legitimate son, an unmarried legitimate daughter or a widow mother. The following are included in the second group if they are wholly or partially dependent on the earnings of the worker at the time of his or her death; a widower, a parent other than a widowed mother, a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or legitimate if married and a minor or if widowed and a married brother or unmarried sister or widowed sister if a minor, a widowed daughter -in law, a minor child of a predeceased

son, a minor child of a predeceased daughter where no parent of the child is alive or a parental grandparent if no parent of the women is alive. The amount of compensation is to be apportioned among the dependants of the deceased workman or any of them in such proportion as the commissioner thinks fit. If an employer is in default in paying the compensation within 1 month from the date it fell due, the commissioner may direct for recovery of not only amount of the arrears but also a simple interest at the rate of 6% per annum on the amount due. In the opinion of the commissioner if there is no justification for the delay, an additional sum not exceeding 50% of such amount may be recovered from the employer by way of penalty. If the workman contracts any occupational disease particular to that employment, that would be deemed to be an injury by accident arising out of and in the course of his employment for purposes of this act. In case of occupational diseases, the compensation will be payable only if the workmen has been in the service of the employer for more than 6 months. Some of the occupational diseases, listed in schedule III to the act are: anthrax, poisoning by lead, phosphorous or mercury, telegraphys` s cramp, silicosis, asbestos, bagassosis, and so on. A contact or agreement whereby the workman relinquishes his right of compensation from the employer, for the personal injury arising out of and in the course of employment, is null and void to the extent to which such contract or agreement purpose to remove or reduces the liability of the payment of compensation. The compensation payable to the workman or to his dependents cannot be assigned, attached or charged. In case the compensation is not paid by the employer, the workman concerned or his dependents can claim the same by filling an application before the commissioner for workmen` s compensation. The claim has to be filed within a period of two years of the occurrence of accident or death. The application, which is filed beyond the period of limitation, can also be entertained, if sufficient cause exists. An appeal will lie to the high court against certain orders of the commissioner if a substantial question of law is involved. An appeal by an employer against an award of compensation is incompetent unless a certificate that the employer has deposited the amount of such compensation accompanies the memorandum of appeal. Unless such a certificate accompanies the memorandum of appeal, the appeal cannot be regarded as having been validly instituted. The period of limitation for an appeal under section 30 will be 60 days. The act is administered by the state govt who are required to appoint commissioners for workmen` s compensation. The functions of the commissioner include (1) Settlement of disputed claims (2) Disposal of cases of injuries involving death (3) Revision of periodical payments.

The commissioner has also been empowered to impose penalty on employers who fail to pay compensation due under the act to the injured worker within one month from the date it fell due. Employers are required to notify the appropriate authorities the number of accidents, and the amount of compensation paid. Doctrine of National Extension: The supreme court explained the doctrine of notional extension of employment thus: as a rule, the employment of a workman does not commence until he has reached the place of employment and does not continue when he has left the place of employment, the journey to & from the place of employment, the journey to and from the place of employment being excluded. It is now well-settled , however, that this is subject to the theory of notional extension of the employers premises so as to include an area which the workmen passes and repasses in going to and in leaving the actual place of work. There may be some reasonable extension in both time and place and a workman may be regarded as in the course of his employment even though he had not reached or had left his employers` premises. The facts and circumstances of each case will have to be examined very carefully in order to determine whether the accident arose out of and in the course of employment of a workmen, keeping in view at all times this theory of notional extension. The question when does an employment begin and when does it cease depends upon the facts of each case. But the courts have agreed that the employment does not necessarily end when the actual down tool signal is given or when the workman leaves the actual workshop where he is working. There is a notional extension at both the entry &exit by time & space. The scope of such extension must necessarily depend on the circumstances of a given case. An employment may end or may begin not only when the employee begins to work or leaves his tools but also when he used the means of ingress and egress to and from the place of employment. Though the doctrine of reasonable or notional extension of employment developed in the context of specific workshop factories or harbors, equally applies to such a bus service (BEST); the doctrine necessarily will have to be adapted to meet its peculiar requirements. While in a case of a factory, the premises of the employer which gives ingress or egress to the factory is a limited one, in the case a city transport service, by analogy, the entire fleet of buses forming the service would be the premises. A driver is given the facility in his capacity as a driver to travel in any bus belonging to the undertaking in the interest of service. Hence, a driver when going home from a depot uses the bus, any accident that happens to him is an accident in the course of his employment. Doctrine of Added Peril: The doctrine of added peril has been dealt with in the case of Bhurangya Coal Company Limited v Sahebjan Mian and Another (1957-II LLJ 522). In this case the principle of added peril was analysed by the Patna High Court as under: The principle of added peril contemplates that if a workman while doing his master` s work undertakes to do something which he is not ordinarily called upon to do and which involves extra danger, he cannot hold his master liable for the risks arising there from. This doctrine therefore, comes into play only when the

workman is at the time of meeting the accident performing his duty. The expression added peril means a peril voluntarily super induced on what arose out of his employment to which the workman was neither required nor had authority to expose himself. This is a pithy formula which can always be employed as the crucial test in the facts of a case which are in the debatable region when a workman meets with an accident while he is apparently performing his duties as a workman and which may yet not be incidentally thereto, in which case the accident cannot be regarded as having occurred in course of the employment so as to entitle the workman to any compensation. Doctrine of Contributory Negligence Under the doctrine of contributory negligence, the employer may raise the defence that the accident occurred purely due to employee` s negligence on his own part. Such a defence has been given no footing. The main purpose being to safeguard the workers and not to deprive them of their rightful claim under the act as otherwise every employer would escape the claim by raising the defence of contributory negligence. in Sundaresa Muldaliar v. Muthammal (1956-II LLJ 52) the Madras High Court held that the doctrine of contributory negligence has no place under the act, because first of all mere negligence or carelessness would not be regarded as a willful disobedience and second, the doctrine of contributory negligence as a good defence in common law has been abrogated in so far as the Workmen` s Compensation Act is concerned. The reasons are said to be twofold, viz A. That compensation is not a remedy for negligence of the employer but it is rather in nature of an insurance of the workman against certain risks of accident B. That this was made an excuse for avoiding all liability, because most negligences are practically accidents in the nature of what is called the act of God. Men who are employed in factories and else where are human beings, not machines. They are subjected to human imperfections. CASE LAW: 1. In Smt. Satya and others v Sub. Divisional Officer, P.W.D. Narsimhapur (1975-I LLJ 394) it was held that the definition does not exclude workmen employed by the departments of the government. A chowkidar, in the office of the PWD is a workman under the Act. 2. A workman employed with the petitioner had died as a result of snakebite after finishing his work of irrigating a sugarcane farm of the petitioners. Thereafter his heirs and dependants claimed a lump sum of Rs 7000 which was allowed by the workmen` s compensation commissioner. The petitioner denied that the decease was a workman within the meaning of the act. It was held that persons employed for any work having some nexus or connection with the tractor or other contrivances would be workmen. It would always be a question of fact to be determined in each case. The deceased had nexus with the work that was being done by mechanical pumps or electric motors. Irrigation obviously is a necessary part of farming. Therefore, in the circumstances of the case, the deceased was a workmen. ( Bhopal Sugar Industries v. Sumitra Bai Battan 1976I LLJ 452).

3. In Pratap Narain Singh Deo v. Srinivas Sabat and Another (1976- I LLJ 235) it was held by the supreme court that in determining the question whether the disablement caused to an employee by an employment injury was total disablement, it was to be seen whether the disablement incapacities the employee for all work he was capable of performing at the time of accident. The levy of penalty would be justified where the employer did not pay the compensation at the rate provided in section 4 of the act as soon as the personal injury is caused. 4. A contractor doing contract work for the govt had employed persons on daily wages. But they were being paid once a week. Four of these persons were involved in a fatal accident while traveling in a govt lorry along with workmen employed directly by the govt. Out of these 4 deceased persons, 3 had worked for more than 6 months while the fourth had worked for two days before the accident. The registers produced by the employer were not of any assistance to show whether those 4 persons were only casual workers. On these facts, it was held that the three deceased persons who had worked for more than 6 months could not, in any event, be regarded as being in employment of a casual nature. Normally, when a person is proceeding from his home to the place of work, he cannot be said to be in the course of employment. It is especially so if he proceeds by a public transport which is available for every citizen. But there may be circumstances which would indicate that even before he reaches the work spot and is on his journey from his home to the place of work or from the place of work back to his home, it would still be in the course of employment. There is no hard and fast rule and the question has to be determined with reference to the facts and circumstances of each case. It is not necessary that workman concerned provided by the employer or that it would be obligatory on their part to do so to conclude that they were in the course of employment while traveling in that conveyance. The contractor expected his workmen to make use of the transport facility. The workmen were held to be in the course of employment. ( Patel Engineering Company Limited v. Commissioner for Workmen` s Compensation, Hyderabad 1977-51 FJR 348). QS 1)Search the following case and present in the class A The rate of interest on delayed payment of compensation can be more than 12% as prescribed in exceptional circumstances B There will be no irregularity when the compensation commissioner entertains a claim petition even after two years C An appeal againt the order of the Workmens Compensation Commissioner will lie in the High Court only on a law point

CHAPTER-8

MATERNITY BENEFIT ACT-1961

Convention of protection of Mother hood adopted in 1919 by ILO. Govt. of India could not adopt above. 1924 Bill was brought in Parliament for Maternity Benefit & opposed & dropped. Royal commission in its recommendation lay stressed on Maternity Benefit & need of legislation. 1926 the Govt. of Bombay passed Maternity Benefit Act followed by Madras, U.P, Bengal, with slight variation. To remove disparity central Govt passed Act in 1961, Extended to mines in 1-111963. State Govt has power to exetend any of the provisions to any other class, establishment, industrial, commercial, and agriculture. ESI Act came in 1948. Maternity Benefit Act was amended w.e.f.1976 may 1 st to extend the benefit to all women employees in establishment cover by ESI - To promote welfare of working women - 12 week maternity leave 6 week before the delivery & 6 week after the delivery - for entitlement of leave a woman must have worked not less than 80 days in a year immediately preceding the day of her expected delivery. 80 day included all holidays, weekly holidays paid leave or unpaid be deemed as working days. - Women have to submit a notice for 6 weeks certificate pregnancy in prescribed form. Employer has to pay Maternity Benefit in advance to the concerned employee or any other person nominated for this. After delivery once again notice & certificate of delivery within 48 hours employer has to pay failure to give notice will not disentitle a woman for benefit. - Rs 250 \- medical bonus if no parental confinement & postnatal care has been provided by employer - In case of miss carriage- notice & certificate is to be serve - For illness due to pregnancy\ miscarriage 1 month more leave with pay. She has to obtain certificate in prescribe form can be taken at any time of during pregnancy. - With a view to provide parent hood the act provide a. Medical Termination of Pregnancy (MTP) 6 weeks of leave with wages b. Grant of leave one month with pay due to illness arising out of MTP or tubectormy c. Two week leave to tubectomy operation d. can ask for light work during pregnancy if she does not avail leave - employer is prohibited from knowingly employing any women in 6 week leave - women will not take any other job during leave - cannot give her heavy work, continuous standing work - two nursing breaks with her initial to feed baby - no legal action can be taken during her absence, no deduction or reduction of wage, no alter in service conditions - death care- including day of death is payable - death during delivery & child alive employer has to pay 6 weeks wages - child also dies up to the day of child death payment is to be made.

Female employee can be deprived of benefit 1) if she take another employment during leave 2) if she dismissed due to gross misconduct act which constitute misconduct 3) willful destruction of employers property 4) assaulting any superior at work place 5) theft, fraud, dishonesty in connection with the employers business 6) willful non observance of safety measures 7) act & rules exhibited in premises Central Govt is responsible for mines & circus state govt to factories & establishment & plantations QS 1) what are the benefits available in the Act? Present your views in the class. 2) Are these benefit available in some other Act? 3) If a pregnant woman does not avail prior leave what you will do? Suggest legal course of action.

CHAPTER-9 EMLOYEES STATE INSURANCE ACTS 1948 Object: To provide certain benefits to employees in case of sickness, maternity and employment injury The Act extends to whole of India. It shall apply to all factories other than seasonal factories, and covers any person whose salary in the aggregate does not exceed Rs. 6500 per month. The benefit of the Act extends inter-alias to the employees whether working inside the factory or elsewhere. It excludes any member of the Indian naval, military or air force. Registration: Every factory or establishment to which this Act applies shall be registered with in such time and in such manner as may be specified in the regulations made in this behalf. Factory means any premises including precincts thereof where 20 or more persons are employed or were employed for wages on any day of the preceding 12 months, and in any part of which a manufacturing process is carried on with

the aid of power or is ordinarily so carried on but does not include a mine or a railway running shed. Seasonal Factory means a factory which is exclusively engaged in cotton ginning, cotton or jute pressing, decoration of groundnuts, the manufacture of coffee, indigo, lac, rubber, sugar. It includes a factory, which is engaged for a period not exceeding 7 months in a year. The appropriate Govt. may extend the provisions of this Act, after giving 6 months notice in official Gazette of its intension of doing so. Exemption of a factory or establishment: Appropriate Govt. exempt any factory or establishment in any notified area from the operation of this Act for a period of one year. (Renew every year) Exemption of persons: The appropriate Govt. may exempt any person or class of persons employed in any factory or establishment to which this Act applies, from the operation of this Act. Exemption of factory or establishment belonging to Govt. or any other local authority: After consultation with corporation, by notification in official gazette, if the employees are in receipt of benefits similar or superior to the benefits provided under this Act. DEFINITIONS 1. Appropriate Govt.: means, in respect of establishments under the control of the central Govt. or a railway administration or a major port or a mine or oil field, the central Govt., in all other cases state Govt. 2. Benefit period: 6 consecutive months corresponding to the contribution period 3. Confinement: means labour resulting in the issue of a living child, or labour after 26 weeks of pregnancy resulting in a issue of a child whether alive or dead. 4. Contribution: means the sum of money payable to the corporation by the principal employer in respect of an employee. 5. contribution period: 6 consecutive months as may be specified in regulations. CONTRIBUTION PERIOD CORRESPONDING BENEFIT PERIOD 1st April to 30th September 1st January to 30th June of the year following 1st October to 31st March of the 1st July to 31st December year following

6. Dependent: means any of the following relatives of deceased insured person, namely(a) A widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter or a widowed mother; and (b) if wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of 18 years and is infirm; (c) if wholly or in part dependent on the earnings of the insured person at the time of his death; (a) a parent other than a widowed mother (b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or illegitimate if married and a minor if widowed and a minor (c) a minor brother or an unmarried sister or a widowed sister if a minor (d) a widowed daughter in law (e) a minor child of a pre deceased son (f) a minor child of a predeceased daughter where no parent is alive (g) a paternal grand parent if no parent of the insured person is alive 5. Employment injury: means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his employment with in or out side the territorial limits of India. 6. Employee- means any person employed for wages in or in connection with the work of a factory or establishment to which this act applies. It includes any person(a) who is directly employed by the principal employer on any work whether such work is done by the employee in the factory or establishment or elsewhere; or (b) who is employed by the immediate employer on any work; or (c) whose services are temporarily lent on hire to the principal employer, or (d) Who is employed for wages or any work connected with the administration of the factory or establishment or any part of the factory or establishment. Persons working in the canteen though employed by a contractor are also employees. Employee does not include(a)any member of Indian navy, military or air force, or (b) any person whose wages exceed Rs. 6500 a month; (c) employees of the managing agents having administrative control of a factory. Supreme court has held two conditions for consideration test of employee(a) he must be employed in or in connection with the work of an establishment and (b) the person should be employed in one or the other categories (i) to (iii) above said. Family- means the spouse and minor legitimate and adopted children dependant upon the insured person and his dependent parents. Immediate Employer: in relation to employees employed by or through him, means a person who has undertaken the execution, on the premises of a factory or an establishment to which this act applies.

Permanent partial disablement: means such disablement of a permanent nature, as reduces the earning capacity of employ in every employment which he was capable of undertaking at the time of the accident resulting in the disablement. (Specified in part II ) Permanent total disablement: means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement. (Specified in part II) Principal Employer: means(a) owner or occupier (b) Managing agent (c) legal representative of a deceased owner or occupier (d) manager under factories Act B. In any establishment under the control of any dept. of Govt. of India, the authority appointed by Govt. C. In any other establishment, any person responsible for the supervision and control of the establishment. Temporary disablement Means a condition resulting from an employment injury, which requires medical treatment and renders an employee as a result of such injury, temporarily incapable of doing the work, which he was doing prior to injury. Wages: means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled. It includes(a) any payment to an employee in respect of any period of authorized leave, lock out, strike which is not illegal or layoff; and (b) other additional remuneration, if any, paid at intervals not exceeding two months. It does not include(a) any contribution paid by the employer to any pension fund or provident fund, (b) any traveling allowance (c) any sum paid as defray special expenses, (d) Payment of gratuity. Week: 7 days commencing at midnight of Saturday night. EMPLOYEES STATE INSURANCE CORPORATION Central Govt. has power to establish corporation. Constitution; (a) One chairman. A vice chairman and not more than five persons to be nominated by the C. Govt. (b) One person each representing each of the states in which Act is enforce to be nominated by the state Govt. (c) One person nominated by the Central Govt. from union territories. (d) Five person nominated by the Central Govt. after consultation with employer associations.

(e) Two persons representing the medical profession to be nominated by the Central Govt. (f) Two member from rajya sabha and one from lok sabha (g) The director general of the corporation. TERM OF OFFICE- 4 years OFFICERS AND STAFF OF THE CORPORATION ( I ) Principal officers; Central Govt. in consultation with corporation may appoint (a) a Director General of Employees State Insurance; (b) an Insurance Commissioner; (c) a Medical Commissioner; (d) a Chief Accounts Officer; and (e) an Actuary All whole time officers for 5 years. (ii) Corporation may employ other staff after sanction of Central Govt. (iii) Corp. may appoint regional boards, local committees and regional and local medical benefit council. Regional boards have equal representation of employer and employee. (iv) Corp. may appoint inspectors Powers of inspector: (1) obtain information regarding Act implementation (2) at any reasonable time enter any office, premises, establishment or factory for inspection (3) examine any employee (4) make copies or take extracts (5) exercise other powers as prescribed Standing Committee: Corp. shall constitute from among its members. Chairman, and 3 members of corp. nominated by Central Govt, 3 members nominated by the State Govt. and 8 members elected by the Director General of corp. Term of office- 2years Medical Benefit Council: C. Govt shall constitute consisting of: (a) Director General, Health Services, ex officio as chairman (b) Deputy D. General, Health Services (c) Medical Commissioner of the corp. (d) One member nominated by the states (e) 3 members nominated by the Central Govt. office term 4 years Powers of the corporation: (I )To promote measures for health of insured persons ( II) Holding of property

(iii)Invest the money (iv) Raise loans (v) Constitute provident and other funds Duties of Corporation: (i)Budget estimates (ii)Accounts and Audit (iii)Annual report (iv) Valuation of assets and liabilities Powers and duties of principal officers: as may be prescribed by Central Govt. Powers and duties of Standing Committee: as may be prescribed by corp. Powers and duties of the Medical Benefit Council: (I)advise the corp. and standing committee on matters relating to the administration of medical benefit (ii) have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical and attendance; and (iii) perform such other duties in connection with medical treatment and attendance as may be specified in the regulations. MEETINGS shall be held as may be specified in the regulations. SUPER SESSION OF THE CORPORATION AND STANDING COMMITTEE If corpo. and standing committee makes default in performing the duties Govt. has power to issue show cause notice why it should not be superseded and after considering explanation and objections by notification in official Gazette supersede the both. All the members shall be deemed to have vacated their offices and a new standing committee shall be constituted. Employees State Insurance Fund: All contributions received from employers and all other money shall be paid in the fund. Registration and procedure there after: Every factory or establishment to which this Act applies has to be registered. Employers must complete the declaration forms in respect of each employee insurable under this Act and send to appropriate office together with the return in duplicate. Office shall allot insurance number and same will be communicated to the employer who shall enter it in contribution register. Identity card: is issued by the appropriate office to an insured person for identification. All cards shall be sent to the employer for distribution to the employees.

Payment of contributions: Employees share + Employer share (equal amount) paid to corporation on monthly basis by 21st day of every month from last day of wage period CASE LAW: 1. Where cabaret artists and orchestra players were engaged by the restaurant, whose performances were not an integral part of the business of the restaurant, were not persons employed but only self-employed persons who would not count in the number of persons employed for wages by the restaurant for determining the applicability of the act of the restaurant ( ESIC v. Maharaja Bar and Restaurant 1950 50 FJR 279) 2. The employees in all the branches of an establishment or factory within a state can be aggregated for the purpose of coverage under the ESI Act, 1948, not withstanding the fact that the head office of the establishment or factory is situated outside the state. The sites of coverage of head office of the establishment or factory is not relevant for the purpose of the coverage of the employees in the branch offices. The crucial consideration is whether the employees in the branches are within the fold of the definition of employee in section 2(9) of the act. If this foremost test is satisfied, the issue of the coverage of the head office recedes to the background. The provisions of the act can be extended by the state govt by notification to any establishment. Therefore, the coverage of the head office as a condition precedent for the coverage of the employees in the branch office is not visualised by the provisions of the act. (ESIC v South Eastern Roadways 1983 63 FJR 113). 3. According to sub-section (3), the provisions of the act come into force in any specified area with effect from the date appointed by the central govt by a notification. According to sub-section (4), the moment the act comes into force in any area, every factory located within that area comes within the purview of the act. Thus so far as factories are concerned, no special notification by the central govt under subsection (5) is necessary. Whether such factory has been registered under the Factories Act is not relevant for the purpose of the ESI Act. A hotel in which power is used in its kitchen for manufacturing

articles of food falls within the definition of the word factory; if it is employs more than 20 persons. The act applies to all employees of hotel as the term includes not only persons employed in the factory but also persons connected with the work of the factory ( All India ITDC Employees` Union v. Hotel Ashok 1984 64 FJR 184) QS 1) Search following cases from journal and present details in the class A Incentive, as paid to the employees at interval exceeding two months, will not attract ESI contributions. B The expenditure incurred for building repair through contractor, will not attract the ESI contributions when the work was not connected with the work of establishment. C A Halwai shop, manufacturing sweet-meat, would attract provisions of the ESI Act if 20 or more persons are employed without use of electric power. D For recovery of dues, ESI Authorities are empowered to attach the bank accounts of the defaulting employer.

CHAPTER-10

PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT-1952

Extent and Application1) Extends to the whole of India it appliesA. To every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed B. To any other establishment employing twenty or more persons or class of such establishments which the central govt. may, by notification in the official gazette, specify in this behalf 2) an establishment to which this act applies shall continue to be governed by this act not withstanding that the number of persons employed there in at any time falls below twenty.

Definitions Appropriate government meansA. To an establishment belonging to, or under the control of, the central govt. or in relation to an establishment connected with a railway company, a major port, a mine or an oil field or a controlled industry, or in relation to an establishment having departments or branches in more than one state, the central government B. Authorised officer means central provident fund commissioner authorised by the central govt. by notification in the official gazette C. Basic Wages means all emoluments which are earned by an employee while on duty or on leave or on holidays, but does not include I. The cash value of any food concession. II. Any dearness allowance, house rent allowance, over time allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment III. Any presents made by the employer D. Contribution means a contribution payable in respect of a member under a scheme E. Controlled industry means controlled by the union has been declared. F. Employer means I. The owner or the occupier of the factory, including the agent of such owner or occupier, the legal representatives of a deceased owner or occupier and manager of the factory. II. In relation to any other establishment, the person who has the ultimate control over the affairs of the establishment G. Employee means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer, and includes any person1) Employed through a contractor in connection with the work of the establishment 2) Engaged as an apprentice under the standing orders of the establishment a) Exempted Employee means an employee to whom, exempted granted under section 17 b) Exempted establishment means an establishment, exemption has been granted under section 17 from the operation of all or any of the provision of any scheme c) Factory means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power. d) Family Pension Fund means the family pension fund established under the family pension scheme e) Family pension scheme means the employees family pension scheme framed under section 6A

Fund means the provident fund established under a scheme Industry means any industry specified in Schedule I, and it includes any other industry added to the schedule by notification under section 4 h) Insurance fund means the deposit- linked insurance fund established under section (2) of section 6C i) Insurance scheme means the Employees Deposits- linked Insurance Scheme framed under sub section (1) of section 6C j) Manufacturing Process means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal k) Member means a member of the fund l) Occupier of the factory means the person who has ultimate control over the affairs of the factory m) Prescribed means prescribed by the rules made under this act n) Recovery Officer means any officer of the central government, state government authorised by the central government o) Schemes means the employees provident fund scheme framed under section 5 p) Tribunal means the employees provident fund appellate tribunal constituted under the section 7D. An establishment consists of different departments or has branches whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment Power to add Schedule I. The central govt. may, by notification in the Official Gazette, add to Schedule I any other industry All notifications under sub-section (1) shall be laid before parliament, as soon as may be, after they are issued. Employees Provident FundCentral govt. may, by notification in the official gazette, frame a Scheme to be called Employees Provident Fund Scheme the said scheme shall apply as soon as may be after the framing of the scheme. Fund shall be administered by, the central board constituted under section 5A Central Board-the central govt. may by notification in the Official Gazette, constitute, a board of trustees for the territories to which this act extends (herein after in this Act referred to as the central board) - A chairman and a Vice chairman to be appointed by the central government - The central provident fund commissioner, ex officio; 1) Not more than fifteen persons representing governments of such states as the central govt. may specify in this behalf, appointed by the central govt. 2) Not more than five persons appointed by the central govt. from amongst its officials 3) Ten persons representing employers of the establishments to which the scheme applies, appointed by the central govt. after consultation with such
f) g)

organisations of employers as may be recognised by the central government in this behalf. 4) Ten persons representing employees in the establishments to which the scheme applies, appointed by the central govt. after consultation with such organisations of the employees as may be recognised by the central govt. in this behalf. Central board shall perform such other functions as it may be required to perform by under any provisions of the scheme Central board shall maintain proper accounts of its income and expenditure The comptroller and auditor general of India shall audit accounts of the central board annually Executive CommitteeThe central govt. may, by notification in the Official Gazette, constitute an executive committee Executive Committee shall consist of the following persons as members namely: A. A chairman appointed by the central govt. from amongst the members of the central board B. Two persons appointed by the central govt. from amongst the persons referred to in clause(b) of sub-section of section 5A C. Three persons appointed by the central govt. from amongst the persons referred to in clause ( c ) of sub section (1) of section 5A D. Three persons representing the employers elected by the central board from amongst the persons referred to in clause (d) of sub section (1) of 5A E. Three persons representing the employees elected by the central board from amongst the persons referred to in clause (e) of sub section (1) of 5A F. the central provident fund commissioner, ex officio State BoardThe central govt may, after consultation with the govt. of any state, by notification in the Official Gazette constitute for that State a Board of trustees Board of Trustees to be body corporateEvery board of trustees constituted shall be corporate under notification Appointment of OfficersThe central govt. shall appoint a central provident fund commissioner who shall be the chief executive officer of the central board. The central govt may also appoint a financial adviser and chief account officer to assist the central provident fund commissioner. A state board may, with the approval of the state govt. concerned, appoint such staff as it may consider necessary. Contribution and matters which may be provided for in schemesContribution which shall be paid by the employer to the fund shall be 10% of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable to each of the employees, if any employee so desires, be an amount exceeding 10% of his basic wages, dearness allowance and retaining

allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section. A fraction of rupee may rounding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupee. Employees` Family Pension Scheme-1995 The need to provide a monthly pension in the contingencies of superannuation/ retirement/permanent and total disablement and death of the member while in surveys or after retirement, therefore a pension scheme was promulgated w.e.f 16-11-1995 Salient Features1) The new scheme is applicable w.e.f. 16-11-1995 to all existing/ future and old members. 2) Option to join the new scheme is opened to all provident fund members w.e.f. 1-4-1993. 3) Past accumulation (both employees & employers share) up to 15-11-1995 are intact. 4) From 16-11-1995 only 8.33 % of wages from employers share of contribution is to be diverted to New Employees Pension Scheme, 1995. 5) Withdrawal benefit is available to members having less than 10 years of service. 6) Retirement Pension is available at the age of 58 years [reduced pension after the age of 50 years]. 7) Retirement Pension to disabled even after one month` s contribution 8) Widow pension is available to widow in addition to pension to two children after the member` s death while in service, out of service or after retirement. 9) Children pension is available on member` s death while in service or after service. 10) Orphan pension is available to children after death of member and widow. 11) Member, having no family can nominate any person to receive pension after death. 12) Members can opt for return of capital payable to the widow. 13) In case the members do not want to avail withdrawal benefit he can have scheme certificate. 14) Future increase in benefits after actuarial valuation from time to time. Applicability: The employees pension schemes is applicable to all establishments to which Employees` Provident Fund & Miscellaneous Provision Act, 1952 applies. Old members of Employees Family Pension Scheme, 1971 as well as new members of the Employees Provident Fund Scheme 1952 w.e.f. 16-11-95 and onwards automatically become members of the new scheme. Option is also open to those members who are not members of the Employees Family Pension Fund 1971 to join the new scheme w.e.f. 1-4-1993 Funding of the Pension Scheme1) Rate of contribution is 8.33% of the wages diverted from employer` s contribution in Provident Fund since16-11-1995

Central Govt. will also contribute to the Pension Fund @ 1.16% of wages. The types and Quantum of Pension1) Monthly Pension Members-it is payable on superannuation/retirement/short service. Minimum pension after the age of 58 years and 24 years is Rs500\p.m. The amount of pension is based on two elements: a. Pension able salary b. Pension able service Pension able salary is the average salary drawn during the last 12 months and pension able service is the total service of the member for which contribution is received under the old pension scheme and new pension scheme.[2 bonus years added in cases of superannuation and/or where service is more than 20 years]
2)

Pension calculation formula [for new entrants] Monthly member pension= pension able salary*pension able service/70 Monthly Widow Pension: it is payable to widow after member` s death while in service, out of service or after superannuation. A. For death in service pension will be equal to members pension. The minimum pension is Rs 450/- P.M. B. In other cases, the minimum pension is Rs 250/- P.M. C. Pension after death of the pensioner will be 50% of his pension. Minimum is Rs 250/- P.M 3) Monthly Children Pension: it is payable to two children up to age of 25 years @ 25% of the widow pension subject to minimum of Rs 115/- P.M. to each child and is payable in addition to widow pension. 4) Monthly Orphan Pension: two children will get orphan pension after death of member and widow/widower @ 75% of monthly widow pension subject to a minimum of Rs 170/- P.M. each. 5) Disablement Pension: it is admissible to a member and total disablement during employment provided he has contributed at least one months contribution in the pension fund. The rate shall be same as admissible as monthly pension subjects to a minimum of Rs 250/- P.M. 6) Return of Capital: an important feature of the scheme is to allow a member to choose any one of the following options providing for pension with the return of capital. Option Normal Pension Revised Pension Return of Capital Revised pension 1000 900 100000 during life of the pensioner with return of capital on his death Revised pension 1000 900 90000 during members 800 (To nominee) life; reduced pension during
2)

widow` s lifetime and then return of capital to nominee Member opts for 1000 revised pension after 20 years members gets return of capital

875

100000

Comparative Returns: benefits under new pension scheme are more beneficial than any other scheme in India: Initial salary Rs 1000/At the end of salary 10 years 15 years 20 years Salary 2593 4177 6727 P.F. 25606 64816 145935 accumulations @ 8.33% Assuming interest 256 P.M. 648P.M 1459 P.M under @ 12% Benefit under the 370P.M 895 P.M 2114 P.M new pension scheme In case of capital returns Reduced pension 333 805 1903 Capital return 37000 89500 211000 As such the money returns are more under the new scheme. Misconceptions and Clarifications: - No provident fund to the person scheme up to 15-11-95 is diverted. However a minimum pension of Rs 500 P.M. to the member is ensured if he has put in 24 years of service. - Maximum contribution in employees Family Pension Scheme at highest salary ceilings had been Rs 12906 in both the employees and employer accounts from April, 1971 to October 1995 which fetches Rs 130/- P.M @ 12% interest. Now Rs 500/- P.M. pension payable under the new scheme - Govt of India will also contribute @ 1.16 % of total pay to the pension fund. - Even if a contribution is made at least for one month [30 days] which could be as low as Rs 125/- a widow/disabled member is assured of a minimum pension of Rs 250/- p.m. life long, when the member dies/ gets disabled during employment. Two children of the widow would additionally get Rs 230/- p.m. till they attain 25 years of age. - Though other intuitions may offer better incentives [which are doubtful] these could be short lived. In the long run, the new scheme is the best scheme, as no other scheme would be as safe, secure and risk free. If any establishment or a class of establishments proposes to have a scheme where pensioners

benefits are at par or are more favorable than the benefits provided under the new scheme, such establishments can be granted exemption from operation of the new scheme.

Employees Deposit-linked Insurance Scheme1) Central govt. may, by notification in the Officials Gazette, frame a scheme to be called the Employees` Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees 2) The employer from time to time in respect of every such employee shall pay a Deposit-linked Insurance Fund into which one percent of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee. Laying of Schemes before ParliamentEvery scheme framed under section 5, section 6A and section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament. Modification of Scheme1) The central govt. may, by notification in the Official Gazette, add to amend or vary, either prospectively or retrospectively, the scheme. 2) Every notification issued under sub section (1) shall be laid, as soon as may be after it is issued, before each house of parliament. Determination of moneys due from employers1) The central provident fund commissioner, any additional central provident fund commissioner, any deputy provident fund commissioner, any regional provident fund commissioner, or any assistant provident fund commissioner may, by ordera) in a case where a dispute arises regarding the applicability of this act to an establishment, decide each dispute b) Determine the amount due from any employer under any provision of this act, the scheme of the family pension scheme or the insurance scheme as the case may be. And for any of the aforesaid purposes may conduct such inquiries as he may deem necessary. 2) The officer conducting the inquiry have the same powers as are vested in a court under the code of civil procedure, for trying a suit in respect of the following matters: A. enforcing the attendance of any person or examining him on oath B. requiring the discovery and production of documents C. receiving evidence on affidavit D. issuing commissions for the examination of witnesses 3) No order shall be made unless the employer concerned is given a reasonable opportunity of representing his case. Where the employer, employee or any other person required to attend the inquiry, fails to attend such inquiry without assigning any valid reason or fails to produce any document or to file any report or return when called upon to do so, the officer conducting the inquiry

may decide the applicability of the act or determine the amount due from any employer, on the basis of the evidence adduced during such inquiry and other documents available on records 4) Where an order is passed against an employer ex partite, he may, within three months from the date of communication of such order, apply to the officer for setting aside such order and if he satisfies the officer that the show cause notice was not duly served or that he was prevented by any sufficient cause from appearing when the inquiry was held, the officer shall make an order setting aside his earlier order and shall appoint a date for proceeding with the inquiry. Review of orders passed under section 7A. Any person aggrieved by an order made but from which no appeal has been preferred under this act, and who, from the discovery of new and important matter or evidence which, after the exercise of due diligence was not within his knowledge or could not be produced by him at the time when the order was made, or on account of some mistake or error apparent on the face of the record or for any other sufficient reason, desires to obtain a review of such order may apply for a review of that order to the officer who passed the order: Provided that such officer may also on this own motion review his order. Determination of Escaped AmountWhere an order determining the amount due from an employer under section 7A or section 7B has been passed and if the officer who passed the orderA. Has reason to believe that by reason of the omission or failure on the part of the employer to make any document or report available, or to disclose, fully and truly, all material facts necessary for determining the correct amount due from the employer, any amount so due from such employer for any period has escaped his notice B. Has , in consequence of information in his possession, reason to believe that any amount to be determined under section 7A or section 7B has escaped from his determination for any period not withstanding that there has been no omission or failure as mentioned in clause C. On the part of employer- he may, within a period of five years from the date of communication of the order passed under section 7A or section 7B, reopen the case and pass appropriate orders predetermining the amount Employees Provident Fund Appellate Tribunal 1) The central govt. may, by notification in the Official Gazette, constitute one or more Appellate Tribunal to be known as the Employees` Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunal by this act 2) A Tribunal person shall consist of one person only to be appointed by the central govt. 3) A person shall not be qualified for appointment as the Presiding Officer of a Tribunal, unless he is, qualified to be a Judge of high court. Term of office-five years from the date on which he enters upon his office or until he attains the age of 62 years, whichever is earlier.

Resignation- the Presiding Officer may, by notice in writing under his hand addressed to the central govt. resign his office: Right of appellant to take assistance of legal practitioner and of government etc. to appoint presenting officers1) A person preferring an appeal to a Tribunal under this act may either appear in person or take the assistance of a legal practitioner of his choice to present his case before the Tribunal. 2) The central govt. or a state govt. or any other authority under this act may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before a Tribunal. Orders of Tribunal. 1) A tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against or may refer the case back to the authority which passed such order with such directions as the Tribunal may think fit. 2) A tribunal may at any time within five years from the date of its orders, with a view to rectifying any mistake apparent from the record, amend any order passed by it. 3) A Tribunal shall send a copy of every order passed under this section to the parties to the appeal 4) Any order made by a Tribunal finally disposing of an appeal shall not be questioned in any court of law. Deposit of amount due, on filling appealNo appeal by the employer shall be entertained by a Tribunal unless he has deposited with it 70% of the amount due from him as determined by an officer Interest payable by the employerThe employer shall be liable to pay simple interest at the rate of 12 % per annum or at such higher rate as may be specified in the amount has become so due till the date of its actual payment. Mode of recovery of moneys due from employerAny amount due from the employer in respect of any contribution payable to the fund the insurance fund damages recoverable any charges payable by him. Recovery of monies by employers & contractors1) Such employer from the contractor may recover the amount of contribution payable by an employer in respect of an employee employed by or through a contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. 2) A contractor from whom the amounts be recovered in respect of any employee employed by or through him, may recover from such employee the employees` contribution under any scheme by deduction from the basic wages, dearness allowance and retaining allowance if any payable to such employee 3) Not withstanding any contract to the contrary, no contractor shall be entitled to deduct the employers contribution or the charges.

Issue of certificate to the recovery officer-where any amount is in arrear, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the recovery officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the establishment or , as the case may be , the employer by one or more of the modes mentioned belowattachment and sale of the movable or immovable property of the establishment or, as the case may be the employer arrest of employer and his detention in prison appointing a receiver for the management of the movable or immovable properties of the establishment or as the case may be the employer Protection against attachment: the amount standing to the credit of any number in the fund or of any exempted employee in a provident fund shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any degree of order of any court in respect of any debt or liability incurred by the member Priority of payment of contribution over other debtsWhere ever any employer is adjudicated insolvent or, being a company, an order for winding up is made the amount due is to be paid in priority to all other debts in the distribution of the property of the insolvent or the assets of the company being wound up, as the case may be. Employer not to reduce wages etcNo employer reduce whether directly or indirectly, the wages of any employee to whom the scheme or the insurance scheme applies Inspectors 1) The appropriate govt. may by notification in the Official Gazette, appoint such persons as it may thinks fit to be inspectors for the purposes of this act. 2) Any inspector appointed for the purpose of inquiring into the correctness of any information furnished in connection with this act for the purpose of ascertaining whether any of the provisions of this act or of any scheme or the insurance scheme have been compiled with by the employer in relation to an exempted establishmentA. Require an employer or any contractor from whom any amount is recoverable to furnish such information as he may consider necessary B. At any reasonable time and with such assistance, enter and search any establishment or any premises C. Examine the establishment of any premises connected there with D. Make copies of or take extracts from, any book, register or other documents E. Exercise such other powers as the Scheme or the insurance scheme may provide. PenaltiesA. An employer who contravenes, shall be punishable with imprisonment for a term which may extend to three years, buta. Which shall not be less than one year and a fine of 10000 Rs in case of default in payment of the employees contribution which has been deducted by the employer from the employees wages

b. Which shall not be less than 6 months and a fine of 5000 Rs in any other case. Special provisions relating to existing provident fund ( I ) Every employee who is subscriber to any provident fund of an establishment to which this act applies shall, pending the application of a scheme to the establishment in which he is employed, continue to be entitled to the benefits accruing to him under the provident fund and provident fund continue to be maintained in the same manner and subject to the same conditions as it would have been if this act had not been passed. ( 2 ) On the application on any scheme to an establishment, the accumulation in the provident fund of the establishment, standing to the credit of the employees who become members of the fund establish under the scheme shall be transferred to the fund established under the scheme, and shall be credited to the accounts of the employees entitled thereto the fund. Act not to apply to certain establishments ( I ) This act shall not apply (a) to any establishment registered under the Co-operative Societies Act. (b) To any other establishment belonging to central Govt. or state Govt. and whose employees are entitled to the benefit of contributory provident fund. (c) To any other establishment newly set up, until the expiry of a period of three years from the date on which such establishment is , or has been set up. Authorising certain employers to maintain provident funds accounts ( I ) The central Govt, may, on an application made to it in this behalf by the employer and the majority of employees in relation to an establishment employing 100 or more persons, authorise the employer, by an order in writing, to maintain a provident fund account in relation to the establishment. Power to exempt ( I ) The appropriate Govt. may, by notification in the official Gazette, and subject to such conditions as may be specified in the notification, exempt any establishment. Transfer of accounts Where an employee employed in an establishment to which this Act applies leaves his employment and obtains reemployment in another establishment to which this Act does not apply, the amount of accumulations to the credit of such employee in the fund shall be transferred, with in such time as may be prescribed by the central Govt. in this behalf, to the credit of his account in the provident fund of the establishment in which he is reemployed, if the employee so desires and the rules permit. Liability in case of transfer of establishment Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or license or in any other manner what so ever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision of this act.

Protection of action taken in good faith: no suit, prosecution or other legal proceeding shall lie against the central govt, a state govt, and the presiding officer of a tribunal, any authority, and an inspector. Presiding Officer and other Officers to be public servants: the presiding officer of a tribunal, its officer and other employees, every Inspector shall be deemed to be public servants. Power to make rules: The central government may, by notification in the Official Gazette, make rules. Case Laws (1) Encashment of leave would be covered by basic wages for calculating contributions towards provident fund (Hindustan Lever Employees Union v. RPFC & Anr.1995 II LLJ279 ) (2) A charitable trust founded for the uplift of women, supplies raw materials to individual women in order to prepare eatables which are sold by the trust. The women are paid on a piece-rate basis. The trust is covered by the Employees Provident fund & Miscellaneous Provisions Act, 1952 (Shri KutchiVishwa Oshwal Mahila Mandal V. union of India and Others 1993 I LLJ 77) (3) Provident fund contributions are payable over arrears arisen out of revision in wages in the process of settlement (Prantiya Vidhyut Mandal Mazdoor Federation and Ors. V. Rajasthan State Electricity Board and Others 1993 I LLJ 222 SC ).

QS 1) Search the following cases and present details in the class A Direction to deposit up to 75% of the demanded amount towards provident fund dues, on an appeal against levy of damages, will not be justified. B A member of Family Pension Scheme becoming a member of the Employees Pension Scheme will be entitled to retirement benefit equal to aggregate of pension and for past services C The Employees Pension Scheme aimed for the welfare of employees, cannot be held to be violative of the constitution of India

CHAPTER-11

GRATUITY ACT-1972
Extent, application and commencement: It extends to the whole of India. It shall apply toA. Every factory, mine, oilfield, plantation, port and railway company. B. Every shop or establishment. C. Such establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding 12 months. (3A) a shop or establishment to which this act has become applicable shall continue to be governed by this act not withstanding that the number of persons employed therein at any time after it has become so applicable falls below ten. Definitions: Appropriate Govt means: I. In relation to an establishmentA. belonging to, or under the control of, the central govt. B. having branches in more than one state. C. Of a factory belonging to, or under the control of, the central govt. D. Of a major port, oilfield railway or mine company the central govt. III. In any other case, the state govt. A. Completed year of service means continuous service for one year. B. Controlling authority means authority appointed by the appropriate govt. C. Employee means any person employed on wages in any establishment, factory, oilfield plantation port Railway Company shop, or mine to do any skilled, semi skilled or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied. D. Employer means, in relation to any establishment, factory, mine, oilfield, plantation, port railway company or shop: 1) Belonging to, the central govt or a state govt, a person appointed by the appropriate govt for the supervision and control of employees. 2) Belonging to any local authority. 3) In any other case, the person, who has the ultimate control over affairs of the establishment. Family, in relation to an employee, shall be deemed to consist of 1) In the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents and the dependent parents of his wife and the widow and the children of his predeceased son. 2) In the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and the children of her predeceased son.

Major port has the meaning assigned to it in clause (8) of section 3 of the Indian Ports Act, 1908(15 of 1908). B. Mine has the meaning assigned to it in clause (j) of sub section (1) of section 2 of the mines act, 1952 (35 of 1952 ). C. Notification means a notification published in the Official Gazette. D. Oilfield has the meaning assigned to it in clause (e) of section 3 of the oilfields (regulation development) act, 1948 (53 of 1948). E. Plantation has the meaning assigned to it in clause (f) of section 2 of the plants labour act, 1951( 69 of 1951). F. Port has the meaning assigned to it in clause (4) of section 3 of the Indian ports act, 1908 ( 15 of 1908). G. Prescribed means prescribed by rules made under this act. H. Railway company has the meaning assigned to it in clause (5) of section 3 of the Indian Railways act, 1890 ( 9 of 1890). I. Retirement means termination of the service of an employee otherwise than on superannuation. J. Superannuation in relation to an employee, means the attainment by the employee of such age fixed in the contract or conditions of service as the age on the attainment of which the employee shall vacate the employment. K. Wages means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance. Continuous service: For the purpose of this act1) Continuous service, including interrupted on account of sickness, accident, leave, absence from duty without leave, lay off, strike or a lockout or cessation of work not due to any other fault of the employee. 2) Where an employee is not in continuous service within the meaning of clause (1), for any period of one year or 6 months, he shall be deemed to be in continuous service under the employerA. For the said period of one year, if the employee during the period of 12 calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than 1) 100 and 90 days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than 6 days in a week 2) 240 days, in any other case. B. For the said period of 6 months, if the employee during the period of 6 calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than1) 90 days, in the case of an employee employed below the ground in a mine or in a establishment which works for less than 6 days in a week. 2) 120 days in any other case.
A.

Controlling AuthorityThe appropriate govt, may, by notification, appointment any officer to be controlling authority. Payment of Gratuity: Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 yearsa. on his superannuation b. on his retirement or resignation c. On his death or disablement due to accident or disease. Provided that the completion of continuous service of 5 years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made , to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institutions, as may be prescribed, until such minor attains majority For every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the rate of 15 days wages based on the rate of wages last drawn by the employee concerned. The amount of gratuity payable to an employee shall not exceed 1.5 lac rupees For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced. Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer. Not withstanding anything contained in sub sectiona. The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused. b. The gratuity payable to an employee may be wholly or partially forfeited1) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part 2) If the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that he commits such offence in the course of his employment. Compulsory Employment: Every employer shall obtain insurance in the manner prescribed, for his liability for payment towards the gratuity under this act. Power to Exempt: the appropriate govt may by notification, and subject to such conditions as may be specified in the notification, exempt any establishment,

factory, mine, oilfield, plantation, port, railway company or shop to which this act applies from the operation of the provisions of this act. Nomination: Each employee, who has completed 1 year of service, shall make within such time, in such form and in such manner, as may be prescribed, nomination Determination of amount of gratuity: 1) A person who is eligible for payment of gratuity under this act in writing shall send a written application to the employer, within such time and in such form 2) As soon as gratuity becomes payable, the employer shall, whether an application has been made or not , determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority 3) The employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable to the person to whom gratuity is payable. (3A) if the amount of gratuity payable is not paid by the employer within the period the employer shall pay from the date on which the gratuity becomes payable to the date on which it is paid, simple interest. Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground. a. If there is any dispute the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity. b. Where there is a dispute the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute. c. The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter of matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount d. The controlling authority shall pay the amount deposited, including the excess amount, if any, deposited, including the excess amount, if any, deposited by the employer, to the person entitled there to. e. As soon as may be after a deposit is made under clause (a), the controlling authority shall pay the amount of the deposit1) to the applicant where he is the employee 2) where the applicant is not employee, to the nominee or , as the case may be, the guardian of such nominee or heir of the employee if the controlling authority is satisfied that there is no dispute as to right of the applicant to receive the amount of gratuity. For the purpose of conducting an inquiry the controlling authority shall have the same powers as are vested in a court, while trying a suit, under a code of civil procedure, in respect of following matters, namely a. enforcing the attendance of any person or examining him on oath b. requiring the discovery and production of documents c. receiving evidence on affidavits

d. Issuing commissions for the examination of witnesses. Any inquiry under this section shall be a judicial proceeding Any person aggrieved by an order within 60 days from the date of the receipt of the order, prefer an appeal to the appropriate govt on this behalf. Provided that the appropriate govt may if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of 60 days, extend the said period by a further period of 60 days. Provided further that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the appellant either produces a certificate of the controlling authority to the effect that the appellant has a certificate of the controlling authority to the effect that the appellant has deposited with him an amount of gratuity required to be deposited. The appropriate govt may after giving the parties to the appeal a reasonable opportunity of being heard, confirm, modify or reverse the decision of the controlling authority. Inspectors: The appropriate govt may, by notification, appoint as many inspectors as it deems fit CASE LAW: 2) The Act is made applicable only to a railway Company but not to the Railway administration. Therefore, the provisions of the Act are not applicable to the South Railway administered by the Central Government. Moreover, Southern Railway is not an establishment, commercial establishment or shop with in section 1 (3) (b) of the Payment of Gratuity Act (Executive Engineer ( construction ) Southren Railway, Erode v. Varghese 1979 54 FJR 80 ). 3) The Haryana State Electricity Board claimed that the provisions of the Payment of Gratuity Act, 1972, would not be applicable to it as the Electricity Board was exempted from the provisions of the Punjab Shops and Commercial Establishment, 1958, by section 3 (b) thereof. But it was held by the court that the provisions of the Act clearly applied to the Electricity Board and Gratuity Act would apply to such establishment (Haryana State Electricity Board v. Controlling Authority 1983 62 FJR 287 ) 4) If a piece rated employee did not actually work for some days because work was not given to him, that period has to be reckoned as continuous service ( Vallabhdas Kanji ( p )Ltd. V. Esmail Koya &Others 1978 52 FJR 470 ) QS 1)search the following cases and present detail in the class A When there is a settlement providing better terms for gratuity i.e.21 days wages per year instead of 15 days, the calculation of gratuity will be at higher rate. B even when an employee is working for 22 days in a month, his gratuity will be calculated on 26 days basis.

CHAPTER-12

ILO & Labour Welfare

1919- set up as part of League of Nations for promotions of universal Peace. After Second World War parent body dissolved. ILO became 1st specialised agency of U.N. in 1946. Aims & objective set out in the preamble & in the declaration of Philadelphia adopted in 1944 & formally appended to constitution 1946. Preamble affirms that universal peace can be established based on social justice draws attention towards labour injustice & hardship to a large number of people & declare that improvement of these conditions is required urgently through means of regulation of hours of works, unemployment check. Provision of adequate wages, protection against sickness, disease, and injury arising out of employment. Protection of Interest of Children & Women. Protection of interest of migrants Labour. Recognition of the principles of freedom of Association. Also states that failure of any Nation to adopt human conditions of labour is an obstacle in the way of other Nations. Declaration of Philadelphia is a repetition of the fundamental principles on which ILO was originally based & declares that Labour is not a commodity. Freedom of expression & of association is essential to sustain a progress. Poverty any where constitutes a danger to prosperity every where The war against want requires to be carried on with understanding vigor within each nation & by continuous & concerted international efforts in which the representatives of wks & employers enjoying equal status with those of gouts join with them in free discussion & democratic division for the promotion of common welfare. If also asserts the primacy of social objective in international policy i.e. the attainment of conditions in which all human beings have the right to pursue both their material well being & their spiritual dev, in

conditions of freedom & dignity of economic security & equal opportunity. Role of ILO-(AIM) All Nations of world should try to achieve1. full employment & raising standard of Living. 2. Workers satisfaction of giving fullest. Measure of their skills &. Make contributions for common well being. ILO- Pioneer work in Social Security. In the decade 1925-34 the ILO adopted convention regulating workmens compensation, sickness insurance, pension insurance ,unemployment insurance & gained leadership. ILO exerted its influence to extend the range of the classes of person protected & the list of contingencies covered & to improve the efficiency of the benefit assured. In 1935 united state introduced into social security Act. schemes in the nature of social Insurance covering the risks of old age, death & unemployment & also federal subsidies to non-contributory pension schemes in different states. Act Named New Zealand Act, which assembled in a coherent a member of existing a new social Assistance benefits & imposed a universal Income tap to finance them. .ILO was deeply impress by its significance . Also the mention of social Security in the Atlantic charter of 1941 gave a currency to expression that extended over half a globe. A number of conventions & recommendations deal with workmens provisions, maturity protection & general aspect of social security one of the most important Instruments adopted by ILO are the social security (minimum standards) convention 1952. ILO consulted Lord Bevridge its idea of social security cause a trend 1. comprehensive & coordinated cover all the contingencies, which without fault on his part, cause the wage earner temporary or permanent loss of earnings, medical care and family allowances. 2. extension of this protection to all adults in the measure of their need for it & to their dependents. 3. assurance of benefit that through moderate in amount is sufficient to maintain a socially acceptable standard of living and are granted in virtue of a definite legal right. 4. financing by such methods as maintained in the mind of the person protected a fair notion of the cost of the benefits he receives but at the save time, invoke a wide application of principal of solidarity as between rich & poor, male & female, the working population & those too old to work, the robust & the delicate. Currently the organisations main object is to extend social security to agriculture & plantation workers. Now they are focusing on unorganised sector. QS 1) Discuss the significance of ILO? 2) What is the role of ILO and how it is functioning Discuss your views in the class.

CHAPTER-13

LABOUR WELFARE
Philosophy of Labour welfare - welfare state of living individual group in a desirable relationship with total environment. Ecological, economical & social environment - concerned with the solution of various problems of weaker sections of society like prevention of destitute & poverty. It aims at social development by means social legislation, social reforms, social service, social work & social action. Object of economic welfare :- promotes economic development by increasing production & productivity. Labour Welfare is a part of social welfare conceptually & operationally. Concept :- viewed as a total concept, viewed as a relative concept. social concept and

Total concept is desirable State of existence involving the physical, mental, moral , and economical well being. Social. concept- Man ,his family community, interrelated aspect operates in these dimensional approach. Relative concept. Relative in time & place, dynamic & flexible, meanings & content differ time to time, industry to industry, country to country , region to region depending upon value system. Level of education & social custom. Definition of welfare- Oxford Dictionary- efforts to wake life worth living for workmen. Cambridge Dictionary- states of doing well. Encyclopedia of social sciences- The voluntary efforts to employer to establish with in the existing industrial system, working & some times living &

cultural conditions of employees beyond what is required by law, the customs of the industry & the conditions of the market. P.R.Hokins - Welfare is fundamentally an attitude of mind on the part of the management, influencing the method by which management activities are under taken. ILO Report II Asian regional conference- Such services facilities & amenities which may be established outside or in the vicinity of undertaking , to enable the person employed there in the perform their work in healthy and congenial surroundings & to provide them with the amenities conducive to good health & high moral. Scope - Can be interpreted in different ways in different countries with varying stages of economic development and political outlook two social philosophy I.L.O observed . term it self has various interpretations & it has not always the some significance in different countries. Some times concept is very wide one & more or less synonymous with conditions of work as a whole . It may include not only the minimum standard of hygiene & safety laid down is labour legislation but also such aspect of working life as social insurance schemes, unmeasured for protection of women & young workers, limitation of hours of work & paid vacations. In some countries the use of welfare facilities is confirmed to the workers employed in undertakings concerned while in the others workers families are allowed to share in many of benefits, which are made available. Labour Welfare work broadly divided in two categories- 1 statutory 2 voluntary Statutory - enacted in law & enforced by Govt. Voluntary - adopted by employers. Some agencies Y.M.C.A & some unions also adopted. I.L.O. in the 1963 divided welfare services in 2 groups 1. welfare amenities with in the establishment. 2. welfare amenities outside the establishment sports, cultural, library, reading room, and holidays homes, L.I.C. workers cooperatives etc. AIMS & Objectives :- partly humanitarian enjoy life. partly economical - improves efficiency partly civic - to develop sense of responsibility & dignity. following motives prompted employer to provide welfare measures-. 1. Early philanthropic- paternalistic approach 2. To win over the workers loyalty 3. To build up a stable work force. 4. Conceived as good instruments 5. To save from heavy taxes. 6. To enhance their image to create an atmosphere of good will. Today focus towards more productivity. HRD play a wide role in picture.

THEORIES OF LABOUR WELFARE Police theory minimum standard of welfare is necessary without compulsion employer does not provide even minimum. Assumption men are selfish , self centered & always try to achieve his own ends at the cost of welfare of others. 2. Religious theory man is religious animal, think about after death. Good work investment, benefactor & beneficiates- both rewarded. Trust & charitable institutionbelieve in divine forbidden of their sins. 3. The philanthropic theory - man loves mankinds. Philanthropic sentiments of employer. Labour Welfare began with in early years of industrial revolution with support of philanthropist Robert Owen. 4. The trusteeship theory - Paternalistic theory. employer should provide funds on ongoing basis for well being of their employees. Mahatma Gandhi advocates this. Depends on top man initiative. 5. The placing theory labour group demanding & militants, more conscious of right & privileges. Timely & periodical acts of labour welfare appear the wks. 6. The public relation theory - atmosphere of good will between labour management & public . Labour welfare programme as a sort of advertisement. Promote good image. May also lack sincerity & continuity. Programmme losses its advertisement values then drop. 7. The functional theory - efficiency theory. Well work is used as means to development efficiency & productivity of labour . employer cares & workers also care. Employer gets high production & workers work one to one relationship assuring best possible relation.
1.

Social works :- emerged in 20th century. Advancement of behavioral

sciences, growth of democratic value, and emphasis on concept of social justice contributed. Based on human aspect & better social functioning of human beings & covers curative, preventive, promotive & rehabilitative services. THREE METHODS OF SOCIAL WORK Social case work - individual art of discovering assuming individuals the best possible relations. Group work - meeting personal needs of individual through their participation in-group activity. Community origination - is a method, which enables a community to identify its own needs & aspirations & help to initiate cooperative efforts to realise its common goals.

QS 1)Present your views in detail on any one theory of labour welfare? 2)What is the significance of social work for society? Present details.

CHAPTER-14

Evolution of labour welfare

before introduction of Labour welfare legislation high exploitation. Early period of industrialization- social workers, philanthropists, religious leader. 1850-1st Act apprentice Act- orphan & poor can learn trade & craft. 1853- fatal accident act to provide compensation . 1859- merchants shipping Act - regulate employment of seaman, health, accommodation & necessary articles of personal use. Earlier attempt of legislation was regulation of employment. Before Independence - movement to improve working conditions 1881:- 1st Indian factories Act - Textile- Bombay- applies to 100 workers. Child below 7 yr prohibited, 7-12yrschild working hours - 9hrs. a day with a hour rests. 4 holiday in a month. Adult worker was not protected any way. Govt. of Bombay appointed 1884- Mulock commission - to review the working of factories Act. Mr. N.M. Lokhande, founder of Bombay Mill Hands Association - united workers- presented a charter of demand to commission. Under pressure of labour- demand for weekly holiday conceded by Mill owner association. 1890 Factory labour commission 1891- the factories amended Act came. applies to 50 workers or more, child age 9 years, workers.hours.7.( 5a.m. to 7 p.m.) women work hours.11 with a 1hours rest. Provision for ventilation, cleanliness & preventing crowding were made. 1907- Govt. Of India appointed a commission to study work conditions.

1911- more comprehensive Factories Act made application to seasonal factories working for less than 4 months in the year, hours of child 6 per day, adults hours 12 per day, certain provisions of health & safety introduced. Voluntary Action 1897- Amalgamation of societies of railway servants of India & Burma started a number of friendly benefit schemes. 1905-the printers union, Calcutta & 1907- Bombay Postal union introduced Mutual Insurance Scheme, Night School Educational stipend funeral allowances. 1910- Kamgar Hit Vardhak Sabha was introduced which helped the workers in various ways. 1914-1918- First World War - prices & profits increase then wages. After war- workers unrest, 1919 - ILO. Established (landmark in history) ILO declared that universal peace can be established if it is based on social justice. 1920- formation of AITUC- 1st central Trade union organization Labour movement. 1919-20- Industrial unrest- 1920 group of India passed Indian factories (Amended) Act- apply to 20 workers with power , child below 12 years prohibited, 12-14years child- 6 hours per day, children & women not to employ between 7 p.m to 5.30 am, Adult workers hours 60 per week & 11hours per day factory inspection improved is appointed technocrats. 1929 - Royal commission on labour- chairman J.H.Whitley - to enquire existing conditions industry, plantation & illness. Commission Made in-depth survey & submitted its movemental report on 14-31931. Recommended - payment of wages Act, minimum wages, need for health insurance, improvement of working conditions in plantation most recommendations accepted led to enhancement of the Factories Act.1934 introduced provisions for rest shed & crches. 1937- Bombay Textile labour Enquiry Committee, Kanpur Labour Enquiry Committee setup. 1938- Central provisions Textile Labour Enquiry Committee, Bihar Labour Enquiry Committee setup. All Committees drew attention towards unsatisfactory factory-housing conditions of industrial labour. 1944 - labour Investigation commission (Rege committee)- focused on problems related to wages , employment housing & social Conditions. Committee covered areas in Labour welfare housing , rest & recreation , occupational diseases, relief in old age & death, crche, Canteen, medical aid ,washing and bathing facilities, educational facilities etc. For the 1st time in India this commission High lighted the importance of welfare measures for workers in improving their social & economic life.

It also emphasised need for strengthening the enforcement machinery for effective implementation of various laws. May 1944 - the grand charter of Labour- known as Declaration of Philadelphia was adopted by the member states of I.L.O. II World War - need for increase production- Large no of factories emerged. Govt. took the interest in Labour welfare. After Independence- acquires new dimensions, state began to realise its responsibility towards Labour welfare, Emergence of unions INTUC 1947, HMS 1948, UTUC1949, BMS 1955, CITU 1970, NLO 1969. On the basis of recommendations of Rege Commission Factories Act 1948 comprehensive 10 workers with power/ 20 wk without power sec.85 empowers. the state govt to extend all or any of the provisions to precious health security, safety, and inspection introduced. 1st 5yrs.plan(1951-56)- Law emphasis on development of welfare facilities avoidance of industrial dispute plantation labour act 1951, the mines Act 1952, The Employees Provident Fund Act 1952 were enacted A subsidised housing scheme for industrial workers was evolved in 1952. the Bombay housing board Act 1948 by state Govt. II nd 5yrs. Plan 1956-61- Importance of better working conditions has been recognised. Stress was on industrial democracy. New enactments to cover seaman, transport workers, coverage of Employees State Insurance Act extended. 1961- dock workers (safety, health, and welfare) were drown. 1959 - Assam Govt. Passed Assam Tea plantation Employees welfare Fund Act. 1956 new plantation labour housing scheme evolves for providing homes for construction. 8. III rd 5yrs. Plan(1961-66) - need for more effective implementation of statutory welfare get better wages & production incentive & this encourage workers. Participation in welfare programs. essence of social provisions. Improvement in working conditions & on part of workers greater productivity & efficiency. Recommended settings of cooperative stores. 1961- maternity benefit act, apprentice act, Iron or mines Labour Welfare cess Act. 1965 Bonus Act. 4th 5yrs.plan(1969-74)- expansion of ESIC Act to cover medical facilities to the families of insured person.1970 contract Labour (Regulations & abolition) act. 1972 payment of Gratuity Act, 1971 P.F.pension scheme, state Govt. Asked to establish holiday home. Strengthening the labour admn. Machinery for effective enforcement of labors Laws. 5th 5 yrs. Plan (1974-79)- promote industrial safety, plan provided safety cells in all state. 6th 5 yrs. Plan (1980-85)- thrust on implementation of laws related to ESIC & EPF pension Scheme. 7th 5 yrs. Plan- emphasis on improvement in working and living conditions of unorganised labour. Effective implementation of acts. The plan laid down certain major tasks for women labour

to treat them as a specific target groups in all rural development Programme women have rights over assets & resources to property diversity vacations training Facilities for women. to encourage appropriate technology equipment & practice for increase their productivity. to provide crche facility & fly planning center. to establish marketing estates at the state level to increase womens participation in trade unions & in decision making to improve & enlarge the scope of the existing legislation for women workers. 8th 5yrs. Plan (1992-1997)- Laid stress on strategies improvement in the quality of labour, productivity, skills & working conditions & provision of welfare & social security measures, especially for those working in organisation.

QS for discussion in the class 1) What is the philosophy of labour welfare? 2) Why factories Act was essential? 3) What is the recent Amendment in case of woman workers?

CHAPTER-15

WELFARE WORK BY TRADE UNIONS

primary function To promote & protect the interest of its member, strive to better terms & conditions of employment. To advance their social & economic interest to achieve higher standard of living . Welfare Actives - organise cooperatives, unemployment assistance, libraries, games & cultural programs. Education - to its member in all aspect of working life, improvement of their civic environment. Basic function lists by National commission of labour unions are1. To secure fair wages for workers. 2. To safeguard security of tenure & improve conditions of service. 3. To enlarge opportunities for promotion & training. 4. To improve working & living conditions.

to provide educational, cultural & recreational facilities. 6 To co-operate in & facilitate technological advance by broadening the understanding of workers. 7 To promote identification of interests of the workers with their industry. 8 to offer responsive co-operative in improving level of production & productivity discipline & high standard of Quality. 9 To promote individual & collective welfare. Union fronts - social, economic, civic & political. To influence the policy decisions in the interest of workers. Formulate a stand on social & economic objectives of community/ country as a whole. Participate in policy-making decisions. Role 1 depends on social & economic development of country. 2 strength of union both organisatioinally & financially. 3 on the institutional set up of socity in which they operate. In India- Associated with Nation building activities. Associated with planning commission, tripartite bodies at central & state level in the formulation & implementation of labour programmes. Traditional Role- adversary to capital proved a serious hindrance in economic growth. Hence need modification confrontation to collaboration. Interest of industry & National Economic system has priority over class interests. Social Responsibilities 1. Educate workers for understanding & cooperation. 2. progress of society by retrain from strike, work stoppage, goes slow. 3. protect interest of consumer. 4. maximisation production & distribution in equitable manner for planned Economic Development. 5. To promote national, social, emotional integration at all lends by rising above divisive force caste, religion etc. 6. To instill in their members a sense of responsibility towards industry & the community. 7. To organise the UN organised sections. 8. encourage capital formation by supporting small serving scheme. 9. To support mordernisation of equipment & rationalisation programs. 10. To work for a social stable order by establishing industrial democracy. 11. To help in holding the competitive price line by keeping a vigilant watch on competitions. Improve internal administration to instill discipline. 13. Common cause to fight all evils in society like hording, black marketing, and speculation. It will develop image & closeness to society.

Trade union movement cannot function effectively makes the society ensures democratic rights & civil liberty to its members & caters to their social & economical interests. QS 1) Discuss traditional role and modern role of union. 2) What is the social responsibility of a union towards society? Discuss in the class.

Chapter -16

Labour welfare work by voluntary organisations

Voluntary welfare resources- certain employers promised a wide variety of welfare amentias. Educational facilitiesEducation- Motivation & accelerated progress for mental & physical development, improvements in quality of industrial force for economic development education of workers & their families are essential. Need for education emphasised by Indian industrial commission 1918 & Royal Commission 1931. TISCO- provided schools, reading rooms, library & financial assistance. Railway- 1st place in extending education to their employees children. Ordinance factory- Made arrangements of ed. & provisions of primary & higher secondary educational schools. BHEL- 75 education Institute, 50,000 student, teaching force 1400, English & local language. Medical facilities:-employees providing before ESI Act. Public sector under takings- it is a matter of role, indoors or outdoor med. Facilities should form integral profit of project. FactoryAmbulance room full equipped Township- Hospital . Private sector under companies:- TISCO, TALCO,PHILIPHS, DCM, HINDUSTAN LEVER, GODREJ, JK.KANPUR, L&T, MAFATLAL GROUP. Many plantations have provided. They have tied up with group hospitals to treat their patients on their expenses. Committee on Labour welfare has recomended that many small factories jointly can establish one medical centre, also recommonded to popularise ayurvedic, unani& Homeopathy. Transport facilities- in certain cases when industry is established in isolated areas then they are providing. Public under taking also

providing. IPCL,G.S.F.C baroda. In Western & European countries its a part of community. workers has made co-operative transports. ILO also has stressed to extend facilities. L&T, Godrej, Pfizer, siemans has extended. Recreational facilities - taken to be opposite of work. It has an importent bearings on the individual pessonality as well as is capacity to contribute to social development. Music, dance drama, games & sports, painting etc., Creat a healing climate industrial peace & progress. ILO recomondations on welfare Facilities in 1956 urged upon the member countries to take appropriate measures to encourage the provisions of recrational facilities for the workers in or near the under takings. Varies provided can classified in two parts. 1. Recreational Facility provided by the industry inside or near the work place. 2. Amentities provided by the industry on community basis. Most plantations have indoor & outdoor recreational facility available. Labour Welfare centers & Labour Welfare boards are aslo providing support. Defence, Railwal, P&T., TISCO,TALCO,Indian Aluminum co. Steel Authority of India, Hindustan auronautical, BHEL, etc. As a part of project. Bombey Mill owners association - sports club, cultural club, reading room. Housing facilities - public & private both has provided . Bombey mill owner association, Calcutta, Delhi, Gwalior, Nagpur, Kanpur, Chennai, Benglore employers have provided housing colonies. TISCO - 20,000 resedential quarters, 40,000 employees residing in Jameshedpur town division, Consist 14 departments., 3500 employees. BHEL & BEL Trichi, Bhopal, Haridwar & Hydrabad - over 2 lacs public sector steel plants- RourKela, Bhilai, Durgapur, Bokaro. Rourkela- 20 sectors - 24,000 quarters, 60% employees are staying.

QS 1) Prepare a full detail activities of any union in the world and present in the class. 2) Which union has done remarkable job present in the class.

CHAPTER - 17

Welfare work by Worker` s Organisation

Developed by unions for their members, out of their own resources & administration by them. Certain Unions have take interest in different programs. - Adult literacy & leadership training programs by INTUC & AITUC- publication & research activity established libraries. - Textile Labour Association (Majoor Mahajan) (TLA) - Mahatma Gandhi established it in 1916. Laboratory to make experiments in labour field through truth, non-violence & welfare activities. 1941- Mahatma Gandhi wrote Ahemdabad Labour Union is a model for all India to copy based on non-violence, purity & simplicity. Never received a set back. It has grown without fuss & show. It has its hospitals, schools, and classes for adults, own printing press, khadi depot, and own residential quarters. All voters in provincial congress committee. Mill owners & lobourers govern their relations largely through arbitration. Gandhiji formed a constructive program, which include activities to promote communal unity, removal of untouchability, education, health & hygiene, upliftment of women, harijans & tribal communities. He called upon to take adult literacy work. TLA evolved its norms. Its programs are all comprehensive & aim at all round development of workers & their families. They arranged cultural programs for enrichment enjoy things together to develop a feeling of social identity & value to their lives. They established a number of social welfare institutions ( KB Kanyagrih) girls hostel is famous to promote secondary & higher secondary education among girls of the backward communities. Mrs. Ansuyaben Sarabhai First president of TLA looked after the institute till her death. Two boys hostel also established. -Provision for talented (scholarship) students in the engineering & medical institutes for members children. -Various programs of education & training, established vocational training center for textile workers to create opportunities for alternative jobs, radio repair, motor rewinding, wire man, short hand typing classes, and sewing class. - regular training programs for office bearers. Services offered- maternity care through maternity home, crche, pre nursery school, supply of free clothing to orphans, game center for school children, gymnasium for workers, tuition classes before examination, hostels for students, volunteers for community need, scholarship, encouragement of cultural & religious activities, celebration of national day/ festivals, formation of mahila mandals, workers education and libraries. Legal aid to members, aid to village level problems of members in their nature places, special cell to organise agricultural workers, attending municipal problems, social & education work for backward communities. Formation of community development centers, arrangement for sick persons treatment in dispensaries, blood bank & blood donation camp, propagating family

welfare schemes, aid to family of a deceased worker. Conducting consumer stores & housing society workers cooperative banks with 43000 members, working capital 1 crore, encouraging rural employment by propagating use of khadi cloth. It is representing all textile of state has a rich annual budget, collected individually from the members at shop level. It maintains a staff about 400 members. So workers to implement program of social activities. Mill Mazdoor Union Indore -established welfare centers to provide cultural & recreational amenities to its members, organise cultural programs, balmandir for educational facilities, kanya mandir ( girls section) Education, tailoring, knitting, training in hygiene & childcare. Mahila Mandireducational & craft training to women employees, night classes, library, reading rooms, indoors & outdoors games. Majdoor Sabha of Kanpur- provided welfare facilities Railway men` s union- has allotted funds to meet unforeseen contingencies like retirement, unemployment, sick & death. They also provide legal defence & life insurance, organised cooperative society for its workers. Rashtriya Mill Mazdoor Sangh (Mumbai)founded by G.D.Ambedkar in 1941, under name Rashtriya Kamgarsangh. Name changed in 1947 got affiliated to INTUC. -1945-sangh was given status of approved union. 1941-union applied for registration under Bombay Industrial Relation Act & was recognised as a sole bargaining agent for all textile workers in Mumbai. Activities- represents individual grievances, handling industrial dispute provision of welfare amenitiesa) Workers education center at Khandala with an investment of Rs 5 lac. b) Provides merit cum need base scholarship & textbook for needy students c) Own library & research cell d) Made arrangements for tailoring & sewing classes e) Provide medical facilities through own allopathic homeopathic clinics f) Own printing press weekly kamgar booklets g) Own auditorium for drama & films h) Own holiday home at khandala known as Ambedkar Smriti i) Own housing cooperative society The Ambedkar institute of labour studies jointly sponsored by INTUC, RMMS in Mumbai in 1976 to study the labour problems. Mill Mazdoor Sabha ( Mumbai)

- established in 1947, affiliated to HMS, representing union under BIR act for silk, cotton processing & hosiery mills in Mumbai. Noted welfare activities as below1) runs credit cooperative societies for the members belonging to small factories 2) scholarships 8th , 9th , 10th standards on merit 3) issue books to needy students 4) in event of death small finance aid immediately 5) own holiday home at Khandala 6) conducts workers education program with central board for workers education 7) own research wing Transport & Dock workers Union -Establishment in 1932 by P.Demellow a clerk in Bombay port trust.1958 became a federation, total membership 35000 out of 70000 workers port & dockworkers. Welfare Activities- consist housing, free medical treatment for family & dependents, schooling for children, workers get financial aid for outdoor treatment, own holiday home at khandala, own credit cooperation society with branches in residential localities, grant scholarship to needy students, maintain a credit cooperative society to provide loans on easy terms, consumer cooperative society to cheaper rates for members. In certain cases free education from D Mellow Trust. QS 1) What was the role of Majoor Mahajan union? Is it a model union comment? 2) What role Dr. Ambedker has played in union activity? Explain in detail.

CHAPTER -18

WELFARE WORK BY GOVERNMENT

Govt Labour Welfare works in India: for industrial workers, conducted by central govt & state govt. Center wise Labour Welfare Funds: central govt has set up statutory Labour Welfare funds for some industries namely mines (Mica, Iron ore, Magnese, Limestone, Dolamite) cine workers & beedi workers. The fund is utilised for following activities: A. Improvement of public health & sanitation, prevention of diseases, provision & improvement of medical facilities B. Provision for improvement of water supply & facilities for washing C. Provision & improvement of educational facilities D. Improvement of standard of living including housing & nutrition, the amelioration of social conditions & provisions of recreational facilities E. Provision of transport to & fro from work. Mica Mines Labour Welfare Fund provides for construction of houses & schemes financed, Fund Maintain central & Regional Hospital at Karma (Bihar), Gangapur (Rajasthan) & Kalichedu (A.P.),families treatment free. Multipurpose Institutions- adult education, women` s welfare. Community educational-educational & recreational facilities to Mica. Worker & their children several primary schools have been established granting scholarship to outstanding children. Iron ore mines, Manganese ore mines & chrome ore mines L.W. fund act 1976. Act provides Levi & collection of a cess @ Rs 1 per metric tone on iron ore & Rs 2 per metric ton on Manganese & Rs 4 per metric ton on chrome facilities as stated in Mica. Beedi Workers Welfare Fund Act 1976 - Levi & collection of cess on tobacco rate not exceeding 50 paise & not less than 10 per 100 manufactured beedi. Facilities as above Mica. The Limestone & Dolamite mines Labour Welfare Fund Act 1972- levy cess @ 50 paise P.M.T. of limestone & Dolamite. Facilities as above Bombay Labour Welfare Fund Act 1953 - apply factories under Factory act, shop & Establishment Act, Motor Transport Workers Act - 5 or more workers, limit up to Rs 2500/- govt is required to constitute a fund under the act. It consist of: A. All fines realised from the employees B. Unpaid accumulations C. 6 monthly tripartite contribution payable on 30th June, 31st Dec. D. any volunteer donations E. any loans & grants in form of subsidy paid by state govt.

Number of states maintaining labour welfare centers run by Labour department. Funds through state govt in labour department budget, provide indoor- outdoor games recreational facilities, nursery class, training in craft, cinema mobile dispensaries. 1952-govt. introduced several housing schemes- to provide financial assistance to intending house builders for construction of subsidies rental houses areas follows: A. Integrated subsidised housing scheme for industrial workers & weaker sections of community B. Low income group housing scheme C. Subsidised housing scheme for plantation work D. Slum clearance/ improvement scheme E. Village housing project scheme F. Middle income group housing scheme-grant loans G. Rental housing scheme for state Govt. employees - LIC gave loan to state govt. H. Jhuggi & Jhopri Removal Scheme in Delhi I. Rural house site come construction assistance scheme-100% grant by central govt to state govt for construction J. House building advance to central govt employees. Scheme Loan extends to cooperative societies up to 80% subject to maximum Rs 15600 per house. Presently implemented in Assam, Tripura, W.B., T.N., Karnataka, Kerala, U.P., Gujarat govt. provide 87.5% (50% loan +37.5% subsidy) remaining 12.5 % planter himself. Aim- rent free housing accommodation to resident workers - providing water supply sewerage, sanitation, drainage, panel, pathways, community latrines, lightning etc. Karnataka Labour Welfare Fund: act 1965 applied to factory, motor or minibus services establishment employing 50 or more, Act provides setting of a fund, which consist all unpaid accumulations, all fines, contribution payable by employee employer & govt voluntary donations. Board consists independent persons & representatives of employee & employer welfare commission is the Chief Executive Officer. State govt is empowered to appoint inspector to inspect accounts Punjab Labour Welfare Fund: act 1965, tripartite corporate bodies called as Punjab Labour Welfare Board. Funds on similar line have been constituted for promoting welfare under U.P. welfare act 1965, Tamil Nadu Labour Welfare Fund Act 1972,West Bengal Labour Welfare Act 1975, Karalla Labour Welfare Act 1975. Assam Tea Plantation Employees Welfare Fund Act 1959, constitute a fund all fined, unpaid, all grants from central & state govt. Tea board constituted under the tea act 1953 voluntary donations & any seen unclaimed in the P.F. a/c of employees. Board consists independent person &

representatives of employees & employer. It sanctions grant in aid to non-official organisations carrying welfare activities. Board has set up training centers for giving training in health & hygiene, childcare. Domestic science, social training & craft welfare commissioner is principal executive officer of the board. Act also contains provisions for the appointment of inspectors for enforcement of the act. U.P. ( Sugar & Power Alcohol) Industries Labour welfare & Development Fund: act 1950 provide constitute a fund, mainly from the sum which govt. has acquired from the sugar factories. Difference between govt. fixed rate of moles for the purpose of supply to alcohol factories & open sale price for other purposes. Fund consist 3a/c housing, general welfare and development a/c. Allocation of the fund collected by the govt. has been made under rules 98% of the fund a/c goes to housing & 1% each to other two accounts. Constitute tripartite advisory committee to advice to govt. on matters connected with the administration of fund. A housing board is constituted exclusively to administer housing a/c. Labour Commissioner is the welfare commissioner, chairman of the housing board. Kerala toddy workers welfare Fund: Act 1969. Constitute a fund employers` contribution 8% of wages. Liable to contribute to the fund as grauity are amount to equal to 50% of the wages fund. Administered by tripartite board. Maharashtra Labour Welfare Board : welfare commissioner Board has utilised the fund for following welfare measuresA. Community & social education centers including reading room & libraries B. Community necessities & other form of recreations C. Home industries & subsidiary occupations for women & unemployed persons D. Games & sports E. Excursion, tours & holiday homes F. Entertainment & other form of recreations G. Activities of a social nature H. Cost of administering the act including salaries of staff appointed for the purpose of act such other objectives as would in opinion of the state govt to improve the standard of living & ameliorate the social conditions of labour. The welfare programs conducted by board consist of verities of activities such as: A. Recreation a. Entertainment- drama, cinema, cultural programs & competitions T.V. etc b. Games & sports indoor & outdoor, gymnasium, wrestling, athletic sports, best physique contents, expert coaching for sport` s man B. Community & Social Education reading room, library, information centers, study facilities seminars, story telling programmes, observance of national days, special education classes, labour counseling. Exhibitions, book banks, scholarships facilities C. Health-family-planning - Child welfare & health education, including social & nutritional guidance. D. Special programs-for women- vocational classes

-Sewing, handicraft, demonstrations in nutritious recipes for children Shishu Mandirs ( age2.5 to 6 years), crche, children library, children play` s apparatus, midday meal -Orientation & coaching classes for students. -Natya Shikshan Shivirs, subsidiary occupation cum fabrication workshops, evening tailoring classes, sports coaching. Workers a scheme of best worker award introduced. A number of cities possess kamgar Kreeda Bhawan/ Kamgar Kalyan Bhawan, Lalit Kala Bhawan, Vishista Kendra, Upakendrs, Slum Centres. Multipurpose welfare complex at Andheri- foot ball ground, stadiums, swimming pool, open air theatre, indoor badminton court, other indoor games, gymnasium. Gujarat Labour Welfare Board After division of Bombay state, Gujarat L. W. Board took the administration of fund & centers conducted formerly by govt of Bombay in the saurastra & Kutch region. So Gujarat has all similar programme like Maharashtra. QS 1) Quantum of work done by Indian govt. in welfare field is not sufficient? Discuss with examples in the class. 2) What Punjab Govt. is doing in the field of labour welfare present in the class. CHAPTER 19 LABOUR WELFARE CENTRES Worker` s education scheme A Tripartite semi autonomous body central board for workers education, registered as society under the ministry of labour. Govt of India to formulate policies & programmes & to administer the workers education scheme. Board H. Quarter Nagpur where the office of director is situated. Organisational set up, the Indian institute of workers education Mumbai, the regional centers, sub regional centers the unit level classes. Network 48 regional & 14 sub regional centers board conduct the short term& long term programmes for industrial workers & rural educators, institute established in 1970 conduct training programme at national level for its official & trade union leaders. It serves as apex level demonstrator & training institute. Institutes conduct training programme & refresher courses for education officers, course for trade union functions & provide library & allied services. Sectors for qualitatively enhancement of employment opportunities. 1966-67 committee on Labour Welfare set up Govt. of India chairman R.K. malviya review statutory & non-statutory measures- made comprehensive recommendations. National Commission of Labour also covered several aspects of Labour Welfare in different establishment & made useful suggestions. Labour Welfare schemes two types 1) Voluntary efforts by some employers

2) Legislative movement Govt role legislator, administrator, promoter. Labour Welfare still considerably low the standards set up by other countries. Labour Welfares Centres- a number of states & union territories have been maintaining either by state govt. or through state Labour welfare boards. In some states run by labour department activities a set pattern made available to factory workers & their families. Provide facility- indoor & outdoor games, music, drama, paintings, nursery classes, and cultural activities. Library , training in different crafts. In some state-through centers- mobile dispensaries, service of health visitors & milk distribution. Cinema van also some state govt. grants in aid to centers for conducting labour welfare. QS Labour welfare centers are playing a key role in development of labour? Present your views in the class.

CHAPTER - 20

Labour Inspection & Administration

1947-ILO adopted the international standards concerning the organisation of labour inspection-the labour inspection (industry) convention & recommendation no.81 (Mines & Transport) recommendations no.82, article 16 of labour inspection convention provides that work places shall be inspected as often as thoroughly as necessary to ensure the effective application of the relevant legal provisions. Labour Inspection has been defined by 2 type Laws & regulations, those stipulating obligations of employer & those laying down the terms of reference & powers of the inspection services. In India National legislations have instituted the right to enter & visit establishments, laid down conditions & limits for such visits. Sole object is to enforce laws & regulations Labour Inspectorate influenced by political structure. Usually annual inspection other visits incident/enquiry. Inspectorate services in India-enforcement machinery Labour administration of state govt. chief inspector of factories need. Factory inspection-enforcement of statutory provisions in respect of safety, health & welfare of employees Enforcement Machinery for mines labour administration of govt of India, director general of Mines safety & chief inspector of mines-head according to the mines act 1952- chief inspector can delegate power of inspection to other inspectors. May make enquiries \enforcement of health safety measures. Coal mines-central govt has declared some officials of the coal mines welfare organisation to be exofficio inspectors of mines. Coal mines welfare

commissioner enforce welfare measures such as pithead baths, crche & maternity benefits goes to employers. Dock workers (safety health & measure) act 1986 the director general of factories advice service & labour institute, Mumbai is the chief inspector. Plantation Labour administration of state govt. Labour commissioner of each state is over all charge of administration enforcement by Senior deputy Labour commissioner.1951 the state govt can appoint chief inspector of plantation, officers, qualified medical practitioner. Chief inspector of factories working under Labour commissioner. In few states they are separate. Development of factory inspection Due importance was given in 5yr plan 1st plan-referred specially to the administrative aspect of enforcement and implementation of legislation, to improve working conditions & promote the general well being of the workers 2nd pointed out inadequate implementation & recommended penalties. 3rd stressed the need for more effective implementations of provisions also stressed upon strengthening of the inspectorates. 4th plan stressed and laid down minimum penalties, legislation related to factories expanded - environmental conditions & occupational diseases - factory inspection entrusted to state govt. - district magistrate & civil surgeon were ex- officio inspectors Factory labour commission 1906 recommended for full time inspectors. Royal commission in 1929 recommended for strengthening the inspectorate & appointment of medical officers. Labour investigation committee 1944 recommended for strengthening machinery of inspections, more & regular inspections for better conditions of work. 1946 govt. of India requested for the services of Sir Wilfrid Garett to advice on administration of factories act. He made many valuable suggestions & all corporate in the factory act 1948. Committee on Labour Welfare made following recommendations: 1) One inspector for every 150 factories as suggested by Labour Ministers conference in 1960 2) Suitable amendment for binding state govt. to utilise the money collected by ways of registration fees solely for the purpose of enforcement 3) A suitable machinery to collect statistics & its publications 4) Factory Inspectorate bifurcate in technical & non technical inspectors 5) Give refreshers training to factory inspector of state 6) Appointment of safety officer in factory where 500 workers or more 7) Other recommendations related to A. Modification of Panel clauses of factories act B. Transportation of inspectors

C. D. E. F.

Organisation of annual meetings of Chief Inspector of factories Tripartite committee at plant level for enforcement of factories act Setting up of specialists & research units Constitution of an all India inspectorate service.

Recommendations of National Commission on Labour 1969 for strengthening the factory inspectorate: 1) Inspection twice annually where management are known to be slack or more often 2) Appointment of factory inspector with non technical qualifications to look after routine matters 3) Use of licensing & registration fees for expending the inspectorate 4) Qualitative & quantitative improvement of inspectorate by appointing in different disciplines 5) Development of frequent and informal contracts by inspectorate with management & unions The Directorate of Industrial Safety & Health (govt. of M.S.) Director is head one additional director, 4 joint directors, 16 deputy directors, 17assistance director, industrial hygiene section is separate which look health hazards. Responsible for enforcement of factories act, 20 sub office in Mofussil, Inspector normal duties as below: Field Work Inspection of factories, Enquiring into complaints & accidents, Survey of not registered factories, Follow up action of inspection remark. Factory plans check up, Check illegal O.T., Night employment of female, Court attendance, Talk to be delivered to workers & supervisors, Check upon payment of wages. Office work Scrutiny of plans, Classification of accidents, Proposal for legal action, Preparation of reports. Unpaid wages to sent to Maharashtra welfare board, Training to factory representatives in filing returns. Free safety posters distribution to factories, Directorate believe enforcement through persuasion rather than legal action. Prosecution proceedings launched in serious negliance.

The Directorate of steam boilers & smoke nuisance established in 1869. Director is head, AdI Director, JT Director, Deputy Directors department is concerned with the administration of following Act & rules in Maharashtra state 1) The Indian Boiler Act 1923 2) The Maharashtra Boiler rules 1962 3) The Maharashtra Economiser Rules 1965 4) The Indian Boiler Regulations 1950 Registration & certification of boilers & economisers are carried out. Manufacturing of boiler & economiser on proper inspection & certification by competent person. QS 1) Discuss the recommendations of labour welfare committee? 2) Find out the role of factories inspector in our country? PLEASE UP DATE YOURSELF THROUGH JOURNALS AND NEWSPAPERS.