Sir’s questions -

Q.1. Deductions under the Payment of Wages Act, 1936.

Define wages

Q. 2. Contracting out - Payment of Wages Act.

Q.3. Contracting out - Minimum Wages Act.
Q.4. Different types of Wages under the Minimum Wages Act.
Q.5. Advisory Committee under Equal Remuneration Act.
Q.6. Authorities and their power for hearing and deciding claims under the Equal
Remuneration Act, 1976.
Q.7. Explain the statutory provisions and constitutional provisions related to the
bonded labour system with two caselaws.
Q.8. Objectives and Salient Features of Employee Compensation Act.
Q.9. Role of the Employer under the Employee Compensation Act, 1923 alongwith
the liability to pay compensation and the compensation calculation.
Q. 10. Authorities and their power under the Employee State Insurance Act, 1948.
Q.12. Disablement under Employee Compensation Act.
Q.13. Explain the nature of similar work providing relevant examples.
Q.14. Define the concept of notional extension under the Employee Compensation
Act, 1923.
Q.15. Explain the various Administrating bodies appointed under the provision of
Constitution of India and the Bonded Labour [Abolition] Act, 1976.
Q.16. Write 5 cases explaining the concept of procedure for fixing and revising the
minimum wages. / Explain the procedure for fixing and revising the Minimum
Wages Act, 1948
Q.17. Settlement of disputes and claims under the Employees State Insurance Act.
Q. 18. Penalties related to Employers under the EmployeeCompensation Act,
1923.
Q.19. Define the concept of Attachment under the Employee Compensation Act,
1923.
Q. 20. Provisions related to charge and assignment under the Employee
Compensation Act.
Section 9: Compensation not to be assigned, attached or charged
Q. 21. Explain the liability for contractors and employees under the employee
compensation act.
Q.22. Explain the concept of bonded debt under the bonded labour abolition act.
Q.23. Explain and discuss the concept of dependance under the employee
compensation act, 1923
Q.24. Explain the various remedies available to the employer against strangers
under the employee compensation act, 1923
Q.25. Write down the aims and objectives of the bonded labour system act
Q.26. Explain the concept of fatal accident providing the provisions mentioned
under the employee’s compensation act, 1923
Q.27. Define the word ‘compensation’ under the employee compensation act,
1923.
Q.28. Exemption of employer from liability in certain cases under the minimum
wages act, 1948.
Q.29. Explain the procedure for fixing and revising minimum wages under the
minimum wages act, 1948
Q.30. The power of authorities for implementing the provisions of Bonded labour
act, 1976.
Q.31. Explain the concept of equal remuneration to men and women
supplementing the provisions of equal remuneration act, 1976.
Q.32. "Equal Pay for Equal Work has no longer remained a Directive Principle of
State Policy only, but a complete legislation by virtue of the Equal Remuneration
Act, 1976. Comment
Q.33. Who is an Employer under the Payment of the Compensation Act, 1923,
along with his liability to pay compensation? How is compensation calculated?
Q.34. Discuss various contribution to be made under the Esic act,1948?
SN
1. Discuss the various objectives and features of the Minimum Wages Act, 1948.
2. Medical benefit council
3. Aims and objectives of the bonded labour system abolition act 1976.
4. Total disablement
5. Work of similar nature
6. Employee under the employee state insurance corporation act, 1948
7. Define wages under the payment of wages act, 1936
8. Object and features under the minimum wages act, 1948
9. Occupational diseases
10. Wages

Employee Compensation Act, 1923/Workmen's Compensation Act, 1923

Employee State Insurance Act, 1948
Employee Remuneration Act, 1976
Minimum Wages Act, 1948
Payment of Wages Act, 1936
Bonded Labour [Abolition] Act, 1976

Sir’s questions -

Q.1. Deductions under the Payment of Wages Act, 1936.

Objects and Application of this Act

● This Act manages the payment of wages to specific classes of people

employed in industry and its significance can’t be under-evaluated. The Act
ensures payment of wages on schedule and with no reasonings aside from
those approved under the Act. The Act accommodates the obligation
regarding payment of wages, fixation of the pay period, time and method of
payment of wages, an obligation to look for the endorsement or approval of
the Government for the acts and consent for which fines might be imposed
by him and furthermore fixing of the fines.
● The Act doesn’t have any significant bearing to people whose payment or
wage is Rs. 24,000/ – or more every month. The Act additionally gives such
that a worker can’t contract out of any privilege or right is given or
conferred to him under the Act.
● According to Section 1(4) of this act, It applies primarily to the installment
of wages to people utilized or employed in any production line or to people
employed (generally than in a factory) upon any railway by a rail route
organization or either legitimately or through a sub-temporary worker which
can also be a subcontractor, by which an individual is satisfying an
agreement with a rail route organization and people utilized in a modern or
 other foundation which are indicated in sub-clause (a) to (g) of clause (ii) of
section 2.

Section 7 – Deductions from Wages

Notwithstanding the provisions of the Railways Act, 1989 (24 of 1989), an

employer must pay the wages of an employed person without deductions of any
kind except those specified under the Payment of Wages Act, 1936. A deduction
can be made only in the following manner.

1. Fines (explained in Section 8)

Fine ought to be forced by the employer on workers with the endorsement of the
state government or recommended authority. The employer ought to observe the
guidelines referenced underneath for and before forcing a fine on the worker.

● Notice of the leading body of fines on workers ought to be shown in the

work premises and it ought to contain exercises that ought not to be made
by the representative
● Fine ought not to be forced on the worker until he gives the clarification
and causes for the demonstration or omission he made.
● The aggregate sum of fine ought not to surpass 3% of his pay.
● Fine ought not to be forced on any representative who is younger than 15
years.
● Fine ought to be forced for one time just on the pay of the employee for
the demonstration or exclusion he made.
● Fines ought not to be recovered in the method for portions or payments
from the representative.
● Fine ought to be recuperated or recovered within 60 days from the date
on which the fine was forced.
● Fine ought to be forced on the day of the act of exclusion made by the
worker or the employee.
● All fines gathered from the worker ought to be credited to basic reserve
and use to help the employees.
● All fines and all acknowledge thereof will be recorded in a register to be
kept by the individual answerable for the payment of wages under section
3 in such structure as might be prescribed, and all such acknowledge will
be applied uniquely to such purposes useful to the people employed in the
factory or foundation as are affirmed by the recommended authority.
 ● No fines forced on any employee or worker should be recuperated from
him after the expiry of 90 days from the day on which the fines were
forced.

2. Absence from duty (explained in Section 9)

● Deductions can be made by the employer for the nonattendance from duty
by the employee for one day or for any period. The sum deducted for
nonappearance from the duty ought not to surpass a total which bears a
similar relationship to the pay payable in regard to the pay time frame as this
time of nonattendance does to such wage-period. (For example:-: if the
compensation of a worker is 6000/– every month and he was missing an
obligation for one month. Finding from the compensation for nonattendance
of obligation ought not to surpass 6000/-)
● Employees present for the work spot and will not work without an
appropriate explanation will be regarded to be missing from duty. On the off
chance that at least 10 people together are missing for the duty with no
notification and without sensible reason, the employer can make 8 days of
wages as a deduction from their pay.

3. Damage to or loss of goods expressly entrusted in the employed person

(explained in Section 10)
● The employer should offer a chance to the employee to clarify the
explanation and cause for the harm occurred and deductions made by an
employer from the worker compensation ought not to surpass the worth or
measure of harm made by the employee.[Sec 10 (2)] All such findings and
all acknowledge thereof will be recorded in a register to be kept by the
individual answerable for the payment of wages under area 3 in such
structure as might be endorsed.

4. House-accommodation or other amenities or services that the employer provides

(explained in Section 11).
● House-convenience courtesy or administration given by the employer ought
to be acknowledged or accepted by the worker, then just the employer can
make a deduction from the wage or salary of the employee. Deduction ought
not to surpass a sum equal to the estimation of the house-settlement
pleasantry or administration provided.
5. Deductions for recovery of advances
● If there should be an occurrence of the advance paid to the workers by the
employer before business started, such advance ought to be recuperated or
 recovered by the employer from the principal payment of the wages/pay to
the employee. In any case, the employer ought not to recuperate or recover
the advances given for the voyaging cost for the worker.

6. Deductions for recovery of loans

● Conclusions for the recuperation of advances conceded for house-building or

different purposes will be dependent upon any guidelines made by the State
Government directing the degree to which such advances might be allowed
and the pace of intrigue payable subsequently.

7. Deductions for payment to co-operative societies and insurance schemes

● Reasonings for payments to co-operative societies or deductions for

payments to insurance schemes kept up by the Indian Post Office or with
worker acknowledgement deductions made for payment of any premium on
his extra security strategy to the Life Insurance Corporation will be
dependent upon such conditions as the State Government may force.
● It is important to note that the term ‘services‘ does not imply the supply of
tools and also the raw materials required for fulfilling the job.

Limit on Deductions

As per Section 7(3) of the Payment of Wages Act, 1936, the total amount of
deductions cannot exceed:

1. 75 percent of the wages when the deductions are wholly or partly for
payments to cooperative societies.
2. 50 percent of the wages in every other case

Q. 2. Contracting out - Payment of Wages Act.

Section 23 in The Payment of Wages Act, 1936

23. Contracting out.—Any contract or agreement, whether made before or after the
commencement of this Act, whereby an employed person relinquishes any right
conferred by this Act shall be null and void in so far as it purports to deprive him
of such right.
Any agreement or understanding regardless of whether made previously or after
the beginning of this Act, whereby an employed individual gives up any privilege
given by this Act will be invalid and void to the extent that it implies to deny him
of such right.

Q.3. Contracting out - Minimum Wages Act.

Section 25 in The Minimum Wages Act, 1948

25 Contracting out. Any contract or agreement, whether made before or after the
commencement of this Act, whereby an employee either relinquishes or reduces
his right to a minimum rate of wages or any privilege or concession accruing to
him under this Act shall be null and void in so far as it purports to reduce the
minimum rate of wages fixed under this Act.

Q.4. Different types of Wages under the Minimum Wages Act.

● There are three kinds of wages: minimum wage, fair wage & living wage.
● At the bottom of the ladder there is the minimum basic wage which the
employer of any industrial labour must pay in order to be allowed to
continue in industry. Above this is the fair wage, which so the living wage
must provide not merely the bare essentials of food, clothing and shelter but
also a measure of frugal comfort, including education for the children,
protection against ill health, requirement of essential social needs and a
measure of insurance against the most important misfortunes, including old
age.
● As regards fair wage, it involves a rate sufficiently high to enable the worker
to provide a standard family with food, shelter, clothing, medical care and
education of children. As regards the minimum wage, it has been understood
in two different senses, the first being an industrial minimum wage which
the employer of any industrial labour must pay in order to be allowed to
continue an industry, the second being a statutory minimum wage, it provide
not merely for the bare substance of life but also some measure of education,
medical requirement and amenities.
● The term minimum wages has not been defined under the provision of the
Minimum Wages Act, 1948 presumably because it would not be possible to
lay down a uniform minimum wage for all industries throughout the country
on account of different and varying conditions prevailing from industry to
industry and from one party country to another.
 ● The legislature also thought it inexpedient to apply the Act to all industries
at a time. In order to understand the concept of minimum wage. It would be
desirable to know the meaning as such. Wage is remuneration to labour for
the work done or the service rendered by it to the employer. Of all the
problems that workers face, the problem of wages is the most vital and
important to him.
● The Fair Wages Committee formulated the concept of living wages, fair
wages and minimum wages. The Fair Wages Committee Report published
by the Government of India in 1949 has been broadly approved by the
Supreme Court in Express News Paper (p) Ltd v/s Union of India and
Standard Vacuum Refining Co. of India V/s Its Workmen
● Living wage i.e. at the apex a political aim and in view of the level of
national income a distant goal to be achieved in the course of years, at
bottom is the minimum wages which must provide not merely for the bare
sustenance of life but for the preservation of efficiency of workers.

Living wages
● The term living wage has not been defined under the provision of the
Minimum Wages Act, 1948. However, "an instance of statutory definition of
living wage is provided in South Australian Act 1912 which states the living
wage" means a sum sufficient for the normal and reasonable needs of the
average employee living in a locality where the worker under consideration
is done or is to be done".
● In the famous Harvester case, The Commonwealth Arbitration Court has
visualized a living wage as a sum which is adequate to satisfy the normal
needs of the average employee regarded as human being in a civilized
community.
● The living wage, according to the Committee on Fair Wage represented the
higher level of wage and, naturally, it would include all amenities which a
citizen living in modern civilized society is entitled to when the economy of
the country is sufficiently advanced and the employer is able to meet the
expanding aspirations of his workers. As the traditional doctrine interprets it,
living wages as is "a will '' the wish which floats a little further ahead an
arm's length out of reach. Its pursuit belongs to the same category as
"sparing the circle".
● In Hindustan Time Ltd. V/S Their Workmen K.C. Das Gupta J. wistfully
observed: "While the industrial adjudication will be happy to fix a wage
structure which would give the workmen generally a living wage, economic
consideration make that only a dream for future, that is why the industrial
 tribunals in this country generally confine their horizon to the target of
fixing a fair wage".

Fair Wage
● Fair wage is a mean between the living wage & the minimum wage.
● In Express Newspaper Ltd. V/S Union of India DasGupta J. defined 'fair
wage' "which may roughly be said to approximate the need based minimum,
in the sense of a wage which is adequate to cover the normal needs of the
average employee regarded as a human being in a civilized society.’’
● In Hindustan Times Ltd. V/S Their Workman in the words of Hidayatullah.
J 'Fair wage' lies between the minimum wage which must be paid in any
event and the living wage which is the goal.
● In Express Newspaper (P) Ltd. V/S Union of India Bhagwati J, described
fair wage as a mean between the living wage and minimum wage.
● Marshall would consider the rate of wage prevailing in an occupation as 'fair'
if it is about on level with the average payment for tasks in other trades
which are of equal difficulties and disagreeableness which require equally
rare natural abilities and an equally expensive training.

Minimum wages
● The term minimum wage has been understood in two different senses the
first being an industrial minimum wage and second one a statutory minimum
wage. An industrial minimum wage is sustenance wage which the employer
of any industrial labour must pay in order to be allowed to continue an
industry. On the other hand a statutory minimum wage is a minimum wage
which must provide not merely for the bare sustenance of life but for the
preservation of the human being.
● Statutory Meaning of Minimum Wages: The Minimum Wages Act defines
wages under Sec. 2 (h) which reads as under: "Wages means all
remuneration, capable of being expressed in terms of money, which could if
the terms of the contract of employment, express or implied, were fulfilled,
be payable to a person employed in respect of his employment or of work
done in such employment, and include house rent allowance but does not
include,
(i) The value of,
a) Any house accommodation, supply of light, water, medical attendance, or
b) Any other amenity or any service excluded by general and special order
of the App. Govt.
(ii) Any contribution paid by the employer to any pension fund or provident
fund or orders any scheme of social insurance.
 (iii) Any traveling allowance or the value of any traveling concession.
(iv) Any sum paid to the person employed to defray special expenses
entailed on him by the nature of his employment; or
v) The gratuity payable on discharge.

● The analysis of this Section Indicate that the following essentials

requirements are necessary for wage:
1) Wages include all remuneration paid to an employee including house rent
allowance.
2) Wages must be payable of being expressed in term of money,
3) Wages become due when there is a contract between employer and employee.
However the contract may be expressed and implied.
4) The terms and conditions of the contract must be fulfilled, or he must have done
work assigned to him under such employment.
But the term wage does not include the value of;
A) Any house accommodation, supply of water, light and medical attendance, or
B) Any other amenity and service excluded by general and special order of the
App. Gov. It does not include any contribution to pension fund or payment under
scheme of social insurance traveling allowance, sum paid to defray special
expenses or any gratuity payable on discharge. The term "Wage" has a composite
meaning which includes all remuneration and other payments payable to an
employee, which are not expressly excluded by the provision of the Act.

Q.5. Advisory Committee under Equal Remuneration Act.

Introduction

● For instance, consider that you are a woman working really hard to earn
well, but you find that there is some other person who worked half as hard as
you but earned double the amount just because that person was a male. The
basic concept underlying the very controversial subject, Feminism, is
“equity”.
● Equity refers to a treatment of equal with equals and Unequal with unequals.
The Equal Remuneration Act, 1976 (the Act) does just that. It provides for
Equal remuneration for both men and women, but also understands the fact
that it will not override any special treatment provided to women in the
country. There was a time in India when women used to face heavy
 discrimination in pay. But, after the advent of this Act, women have been
able to sue malpractices prevailing in their workplace.

Act to have overriding effect

● The Central Industrial Machinery (also, Chief Labour Commissioner) has

given effect to this Act and it states that it will not affect the terms and
conditions of any law which provides special treatment to women. The
statement in Section 3 itself suggests that it will have effect under all
circumstances.
● However, it also provides that any special treatment accorded to women in
connection with the birth or expected birth of a child, or the terms and
conditions relating to retirement, marriage or death or any of them will not
be affected by the present Act.
● Chapter 2 of the Act, provides for payment of remuneration at Equal Rates
to Men and Women workers and other matters.
● The employer must not discriminate on grounds of sex, when it comes to
remuneration provided for the same amount and nature of work. This Act
was placed because there were numerous cases of women getting paid at a
lower rate than their male counterparts.
● In the case of People’s Union of Democratic Republic v. Union of India
1982, women were only paid 7 per day as opposed to 9.25 per day for male
workers. After hearing both sides, Justice P.N. Bhagwati held that the
authorities need to make sure that the men and women both are paid at par to
each other for similar amounts of work.

Advisory Committee
● Section 6(1) of the Act states that an Advisory committee must be created
which will aid the purposes of increasing employment opportunities. The
government is taking all possible steps in making a change in the
remuneration policies of the employers in India.
● Section 6(2) states, the definition of appropriate government is given in 2(a)
(1) here means, the part of the Central Government which is responsible for
the administration of that area of work. The areas of work, which are
administered by a Central authority or a Central Act, for example, Banking
companies, oil fields etc. will be addressed to the Central Government. The
rest of the areas which come under the state government’s authority, will be
governed by the State government.
● As given under section 9, the advisory committee must consist of at least 10
people, which will be nominated by the appropriate government. Women
must consist of one-half of this committee because that will help in
formulation of policies with the help of people who are the real stakeholders.
● Section 6(3) states, the factors which make a difference in the decision are:
1. Number of women at work
2. Nature of work
3. Hours of work
4. Suitability of women
5. Need to provide opportunities
● After consideration of all these factors, the committee must decide on
bringing the appropriate norms in effect. The advisory committee will work
towards bringing reforms by understanding the requirements of the
employees. The committee is free to regulate its own procedures. The
appropriate government will implement the policy as suggested by the
committee.
● The primary function of the Advisory Committee is to advise the
government on matters related to the implementation of the Act. The
committee provides guidance and recommendations on issues concerning
equal remuneration, non-discrimination, and related matters.
● The Advisory Committee reviews the progress of the implementation of the
Act and may make recommendations to the government for improving the
enforcement and effectiveness of the legislation. The committee may
suggest measures to address any challenges or issues that arise in the
application of the Act.
● The government may consult the Advisory Committee on matters related to
policies, rules, regulations, or any proposed amendments to the Act. The
committee's expertise and inputs help in formulating appropriate strategies
and policies to ensure equal remuneration for men and women workers.
● The Advisory Committee submits reports and recommendations to the
government at regular intervals or as required. These reports provide an
overview of the status of equal remuneration implementation, challenges
faced, and suggestions for improvements.
Q.6. Authorities and their power for hearing and deciding claims under the
Equal Remuneration Act, 1976.

Introduction

● For instance, consider that you are a woman working really hard to earn
well, but you find that there is some other person who worked half as hard as
you but earned double the amount just because that person was a male. The
basic concept underlying the very controversial subject, Feminism, is
“equity”.
● Equity refers to a treatment of equal with equals and Unequal with unequals.
The Equal Remuneration Act, 1976 (the Act) does just that. It provides for
Equal remuneration for both men and women, but also understands the fact
that it will not override any special treatment provided to women in the
country. There was a time in India when women used to face heavy
discrimination in pay. But, after the advent of this Act, women have been
able to sue malpractices prevailing in their workplace.

Act to have overriding effect

● The Central Industrial Machinery (also, Chief Labour Commissioner) has

given effect to this Act and it states that it will not affect the terms and
conditions of any law which provides special treatment to women. The
statement in Section 3 itself suggests that it will have effect under all
circumstances.
● However, it also provides that any special treatment accorded to women in
connection with the birth or expected birth of a child, or the terms and
conditions relating to retirement, marriage or death or any of them will not
be affected by the present Act.
● Chapter 2 of the Act, provides for payment of remuneration at Equal Rates
to Men and Women workers and other matters.
● The employer must not discriminate on grounds of sex, when it comes to
remuneration provided for the same amount and nature of work. This Act
was placed because there were numerous cases of women getting paid at a
lower rate than their male counterparts.
● In the case of People’s Union of Democratic Republic v. Union of India
1982, women were only paid 7 per day as opposed to 9.25 per day for male
workers. After hearing both sides, Justice P.N. Bhagwati held that the
 authorities need to make sure that the men and women both are paid at par to
each other for similar amounts of work.

Power of appropriate Government to appoint authorities for hearing and deciding

claims and complaints.

● Section 7 of the Act states, the complaints and claims regarding the
infringement of this Act shall be addressed to the appointed officer. The
applicants have to make sure that they have accurate proof of the
commitment of the offense. The offenders will certainly be sued for any
inequality in payment. In cases where the discrimination is made in two or
more works, the consequences will be decided by the appointed officer.
● Section 7(4) of the Act, suggests that due inquiry must be made by the
appointed officer, wherein both the parties in the matter, must be given an
opportunity to be heard. The appointed officer shall have all the powers of a
Civil Court, as mentioned under Section 195, Code of Civil Procedure 1908
and Chapter XXVI of the Code of Criminal Procedure.
● Section 7(6) mentions the situation where any of the parties is dissatisfied
with the decision given by the authority. The aggrieved party must prefer an
appeal before such an authority which is specified by the appropriate
government, within thirty days from the date of the order.

Q.7. Explain the statutory provisions and constitutional provisions related to

the bonded labour system with two caselaws.

Introduction
● Various forms of slavery existed in Indian society before its independence. It
was first legislatively abolished by the British Empire in 1843, through Act
No.V of 1843 also known as the Indian Slavery Act, 1843. However, this
practice has not been completely eradicated from Indian society till date.
One of the most common forms of slavery which is still prevalent in Indian
society is bonded Labour. Even after the independence, there have been
several legislations passed in India which abolishes bonded labour.

What is bonded labour?

● Bonded labour has been defined as well as addressed as a prohibited practice
in several international conventions as well as many Indian legislations. It is
a system of forced (or partly forced) labour in which a debtor enters (or
presumed to have entered) into an agreement with the creditor. Owing to this
agreement, following are the end results:
1. Render services to the creditor (by himself or through a family member)
for a specified (or unspecified) period of time with no wages (or nominal
wages).
2. Forfeit the right to move freely.
3. Forfeit the right to appropriate or sell the product or property at the
market value from his (or his family members’) labour or service.
● This definition has been provided in the Bonded Labour System (Abolition)
Act 1976.
● The said agreement of bonded labour results in an undeniable loss of
freedom on part of the debtor. However, the scope of ‘loss of freedom’, as
used above has not been defined so what would be the yardstick of this ‘loss
of freedom’? The National Human Rights Commission has elucidated on the
scope in the following manner:
● Loss of freedom of employment or alternative avenues of employment to
sustain a decent livelihood.
● Loss of freedom to earn the minimum wage as notified by the
Government of India.
● Loss of freedom to move from one part of the country to another.
● Constitutional Safeguards
1. Article 21 of the Indian Constitution – This is the most important and
foremost safeguard against any exploitation of human lives and their
liberty. It is part of the Basic Structure of the Constitution and cannot be
amended. It secures the right to life and right to live with human dignity
to every person in India. So, any practice of bonded labour would be in
contravention of this Constitutional provision since bonded labour
deprives a person of numerous liberties.
2. Article 23 of the Indian Constitution – As discussed above, the
Constitution of India expressly provides for the abolition of forced labour
and prohibits this form of forced labour in the territory of India. This not
only prohibits bonded labour but also covers the practice of Begar and
other forms of human trafficking in India.
3. Article 39 of the Constitution – This is covered in Part IV of the Indian
Constitution which deals with the Directive Principles of State Policy is
albeit not enforceable but is considered irrefutable for the purpose of
governance. This constitutional provision directs the State to secure the
 right to an adequate livelihood. It also directs the state to formulate its
policies with an object that no citizen is forced out of economic necessity
to enter into avocations which are not suited to them.
4. Article 42 of the Constitution – This is also a Directive Principle of
State Policy which states “The State shall make provision for securing
just and humane conditions of work…” This means that the state must
ensure that every person has a working condition which are just and
humane for them. However, since it is part of Part IV, it cannot be
enforced.
5. Article 43 of the Constitution – This directive directs the State to secure
conditions for work ensuring a decent standard of life.

Statutory Provisions

● Apart from the above mentioned constitutional provisions and safeguards,

there are also a few legislations which deal with the subject at hand.
However, the major law governing the practice of bonded labour is The
Bonded Labour System (Abolition) Act 1976. In addition to this, there are a
few more legislations in consonance with this major law in India such as
Contract Labour (Regulation and Abolition) Act 1970, Minimum Wages Act
1948 and the Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979 and even the Indian Penal Code 1860.
● The Indian Penal Code recognizes the offense of unlawful compulsory
labour and imposes a punishment of imprisonment for a term extendable
to 1 year or with a fine or both.
● The Minimum Wages Act 1948 sets the minimum wage for certain
enumerated occupations and requires that overtime be paid to whoever is
working beyond the ‘normal working day.’
● Similarly, the Bonded Labour System (Abolition) Act 1976 prescribes
imprisonment for a term upto 3 years as well as a fine upto Rs. 2000/-.
This punishment is for whoever compelling a person to render their
service under bonded labour and whoever advances the bonded debt.
Every offence under the Act is cognizable and bailable.

Cases

● In the case of Neerja Chaudhury v. State of Madhya Pradesh, the Supreme

Court ruled – “It is the plainest requirement of Articles 21 and 23 of the
Constitution that bonded labourers must be identified and released and on
 release, they must be suitably rehabilitated… Any failure of action on the
part of the State Government[s] in implementing the provisions of [the
Bonded Labour System (Abolition) Act] would be the clearest violation of
Article 21 and Article 23 of the Constitution.”
● As mentioned above, there are a few constitutional provisions that safeguard
the system of bonded labour from being practised. In this case, the Apex
Court did very well by relating the issue of bonded labour system with the
person’s fundamental right enshrined in Article 21 of the Constitution and
gave a clear thrust to the State to implement Article 21 and Article 23 of the
Constitution.
● Also, in the case of People’s Union for Democratic Rights v. Union of India,
the Supreme Court of India delivered the judgement stating – “Where a
person provides labour or service to another for remuneration which is less
than minimum wage, the labour or service provided by him clearly falls
within the scope and ambit of the word `forced labour’…”

Q.8. Objectives and Salient Features of Employee Compensation Act.

Introduction

● The Act exhaustively covers the scope of workplace relationship dynamics

of an employer and employee, while taking into its ambit the due measures
arising out of situations that require legal remedies, measures and provisions
for adequate compensation to employees, in that it spreads cover as social
security in the guise of a well-constituted framework of compensation.
● Section 2 of the Act lays forth various definitions of terms like employer,
employee, dependent, wages, partial and total disablement, and many more
which are covered within the ambit of the Act.
● Since the scope of this Act is largely specific to compensate the employees
or to their dependents in case of injury, death, illness as a result of job
undertaken, etc. It is essential to have a lucid basis upon which the liability
to pay compensation may be formulated.
● Section 3 of the Act exhaustively and expressly lays down not only the
provisions for the principles on which the compensation is payable but also
promulgates where the compensation is not payable. The scope of the Act
also covers an occupational disease to be deemed as an injury arising out of
an accident, and Section 3 of the Act clearly states the provisions for such
classification. This section enables the employee to recover compensation
from the employer due to injury arising out of an accident, likewise, it also
 enables the dependents of a deceased employee to recover compensation for
his death.

Object and purpose of the Act

● To better understand the object and purpose of the Act it is necessary to

understand the basic definitions, scope and concept upon which the Act
stands. For this, we are going to review some of the important features and
definitions promulgated under the Act.
● For this, we are going to cover the following essential features as defined
under the provisions of the Act:

1. Dependant

● The Act proceeds to primarily define dependents. Dependent in this case

means those relations of a deceased employee, who were dependent on the
employee wholly or partially for sustenance.
● These dependents are broadly categorized into three categories, viz. 1) direct
dependents, like a widow 2) major dependents like a son or daughter and 3)
other dependents like for example parents, who are (wholly or partially)
dependent on the employee.
● This definition is essential, as in case of death of an employee, at the time it
would be essential to understand who is considered and in particular to the
case who are the dependants deserving to be compensated on account of the
death of the employee.

2. Employer

● According to Section 2(1)(e), an employer includes:

1. Any body of persons, whether incorporated or not.
2. Any managing agent of an employer.
3. The legal representative of a deceased employer.
4. When the services of an employee are temporarily lent or let out to
another person by the compensation with whom the employee has entered
into a contract of service or apprenticeship, i.e. such other person while
the employee is working for him.
● It is essential to define the ‘employer’ as it is the employer who is liable to
pay the compensation as per the Act, nobody other than the someone who
satisfies the definition of the employer as per the definition laid down in the
 Act of one who is made expressly liable to pay compensation shall be
responsible to pay the compensation.

3. Employee

● The definition of employee is far wider than the employer under the Act.
The central and state governments have been empowered to add to Schedule
II, any class of personnel employed in any occupation, which satisfies the
government to be classified as a hazardous occupation.
● The injuries that fall under such provisions can be expressly defined with
limitations. It is important to note that as stated the definition of the term
employee is exhaustive as it covers what the definition includes as well as
does not include in the definition of an employee.
● "Employee" means a person who is:
1. Employed for wages: The Act covers individuals who are engaged in any
employment for wages, whether directly by the employer or through a contractor,
either expressly or impliedly.
2. Inclusive Categories: The definition includes specific categories of individuals
such as a railway servant, a person employed on a ship, a person engaged in
construction work, a driver, and any person employed in any hazardous
employment as specified by the appropriate government.
3. Apprentices: The Act also includes apprentices within the definition of an
employee, provided they are engaged in an employment for the purposes of the
employer's trade or business.

4. Wages

● Section 2(1)(m) defines wages as including any privilege or benefit which is

capable of being estimated in money. The definition of wages is important as
the amount of compensation lays its entire base on the amount of wages of
the employee.

5. Disablement: Partial and total

● The Act doesn’t expressly define disablement. It only defines partial and
total disablement. These definitions elicit the idea that disablement under the
ambit of the Act is the loss of capacity to earn and depending on the nature
of injury and percentage of loss of earning capacity, can be expressly
defined as partial or total.
6. Compensation

● The amount paid by the employer, liable to compensate the employee for
loss of earning capacity or incapacitated by the disability arising out of
injury or accident or occupational illness, etc. Or the amount to the
dependents of a deceased employee that the employee is liable to pay as
defined by Section 2(1)(c) of the Employee Compensation Act, 1923.

Objectives:

1. Compensation for Workplace Injuries: The primary objective of the Act is to

ensure that employees who suffer from work-related injuries or occupational
diseases receive compensation for their physical and financial losses.
2. Financial Protection: The Act aims to provide financial security to employees and
their dependents by compensating for medical expenses, loss of wages, and
disability arising out of employment-related accidents.
3. Promoting Social Welfare: The Act is designed to promote social welfare by
safeguarding the interests of workers and their families, ensuring that they are
adequately compensated in case of injuries or fatalities resulting from their work.
4. Employer's Liability: The Act establishes the liability of employers to pay
compensation for work-related injuries or death that occurs during the course of
employment.

Salient features of Workmen’s Compensation Act, 1923

Salient Features:

1. Scope of Coverage: The Act applies to all employees, irrespective of their nature
of employment or type of work. It covers a wide range of workers, including
manual laborers, clerical staff, apprentices, and employees engaged in
hazardous occupations.
2. Compensation Amount: The Act provides for the calculation of compensation
based on factors such as the nature and extent of the injury, the employee's
wages, and the age of the employee. The compensation amount is determined by
the Employees' Compensation Commissioner or the appropriate authority.
3. Medical Treatment: The Act requires employers to provide medical aid and cover
the expenses of medical treatment for employees who sustain work-related
injuries or illnesses. This includes the cost of medical consultations,
hospitalization, medication, and rehabilitation.
4. Dependents' Entitlement: In case of an employee's death due to a work-related
accident, the Act entitles the dependents of the deceased employee to receive
compensation. Dependents may include the spouse, children, or dependent
parents.
 5. Employers' Obligations: Employers are required to maintain records of accidents,
report accidents resulting in death or serious injury, and inform the Employees'
Compensation Commissioner or the appropriate authority about the incident.
They are encouraged to take insurance policies to cover their liability under the
Act.
6. Redressal Mechanism: The Act establishes a system for the speedy and efficient
settlement of claims through the appointment of Employees' Compensation
Commissioners or other appropriate authorities. It provides a legal framework for
the resolution of disputes and grievances related to compensation.

The Employee's Compensation Act, 1923, is designed to protect the rights and welfare
of employees by ensuring that they receive fair compensation in case of work-related
injuries or fatalities. It establishes the liability of employers and provides a framework
for addressing and resolving compensation claims.

Q.9. Role of the Employer under the Employee Compensation Act, 1923
alongwith the liability to pay compensation and the compensation calculation.

Role of Employer

● According to Section 2(1)(e), an employer includes:

1. Any body of persons, whether incorporated or not.
2. Any managing agent of an employer.
3. The legal representative of a deceased employer.
4. When the services of an employee are temporarily lent or let out to
another person by the compensation with whom the employee has entered
into a contract of service or apprenticeship, i.e. such other person while
the employee is working for him.
● It is essential to define the ‘employer’ as it is the employer who is liable to
pay the compensation as per the Act, nobody other than the someone who
satisfies the definition of the employer as per the definition laid down in the
Act of one who is made expressly liable to pay compensation shall be
responsible to pay the compensation.

Liability

Section 3 provides the basis of liability, under three heads:

Employer’s liability
When an employee, in the course of his employment incurs a personal injury by an
accident that arose while in the course of such employment, is bound to
compensation by his employer who is liable to offer such compensation to such
employee. These compensations should be in accordance with provisions of
Sections 3 to 18A of the Act.

However, the employer is not liable to compensate the employee in cases as

under:

These defences, however, are not available to the employer in case of the death of
the workman, in which case, even though the employee was negligent, the
employer is liable to pay full compensation to the dependants of the workman,
whose death arose out of and in the course of his employment.

The case related to employer’s liability in case of workman’s death is illustrated as

under:
 ● There is sufficient judicial precedent for the liability of the employer for
compensation due to death in the course of his employment. To bolster the
above two scenarios following was held by the courts in various cases:
● 1) In the case of the Regional Director, E.S.I. Corporation & Anr. v
Francis De Costa & Anr. a Three-Judge Bench of the court held as under;
“In the case of Dover Navigation Company Limited v. Isabella Craig 1940
A.C. 190, it was observed by Lord Wright that nothing could be simpler than
the words arising out of and in the course of the employment.” It is clear
that there are two conditions to be fulfilled. What arises “in the course of
the employment is to be distinguished from what arises “out of the
employment.” The former words relate to time conditioned by reference to
the man’s service, the latter to causality. Not every accident which occurs to
a man during the time when he is on his employment, that is directly or
indirectly engaged on what he is employed to do, gives a claim to
compensation unless it also arises out of the employment. Hence the section
imports a distinction which it does not define. The language is simple and
unqualified.

Compensation [Q.11. Define Compensation under the Employee Compensation

Act.]

● Compensation refers to the amount paid by the employer, liable to

compensate the employee for loss of earning capacity or incapacitated by the
disability arising out of injury or accident or occupational illness, etc. Or the
 amount to the dependents of a deceased employee that the employer is liable
to pay as defined by Section 2(1)(c) of the Employee Compensation Act,
1923.
● The above provisions are subject to two conditions:
1. From the lump sum or half-monthly payments, one must deduct the
amount of any payment of allowance which the employee has received
from the employer by way of compensation other than payment for
medical treatment, during the period of disablement prior to receipt of
such lump sum or do the first half-monthly payment.
2. No half-monthly payment can, in any case, exceed the amount, if any, by
which half the amount of the monthly wages of the employee before the
accident exceeds half the amount of such wages which he is earning after
the accident.
● Section 4 of the Act deals with the amount of compensation. The provisions
related to the quantum of compensation can be divided into 4 contingencies
as under:
● Cessation of disablement: In case disablement ceases before the half
monthly payment is due, payment shall be made proportional to the
number of days in the half-monthly cycle.
● Funeral expenses: In case of death due to injury, the employer must,
apart from the compensation pay Rs. 5000 to the eldest surviving
dependant of the deceased, as funeral expenses.
● Reimbursement of Medical Expenses: By the amendment of 2009
provision is made for the employee to get full reimbursement of the
actual medical expenses incurred by him for the treatment of injuries
caused to him during the course of his employment.
● Provisions of the Act, not sympathy or generosity will be the
determining factor: In Oriental Insurance Co. v. Mohammed, 2002, the
Kerala Court held that the provisions of Section 4 will determine the
compensation in case of injuries falling in Schedule I. The courts cannot
ignore the statutory mandate and act as benevolent kings; generosity and
sympathy cannot be exercised at the expense of others.

Q. 10. Authorities and their power under the Employee State Insurance Act,
1948.

Introduction
 ● The Employees’ State Insurance Act incorporates a number of sections,
these sections provide for medical benefits and insurance for any employees
working under factories registered under the ESI Corporation. This is an
exciting prospect from both an employee’s and a legal perspective as the
beginning of a formal social security program in India.

Application and scope of the Act

● The Employees’ State Insurance Act, 1948 (ESI), enables the financial
backing and support to the working class in times of medical distress such
as:
● Sickness.
● Maternity Leave.
● Disorders(mental or physical).
● Disability.
● Death.
● It is a self-financed initiative, which serves as a type of social security
scheme, it is enacted to prevent the working class from any financial
problems arising out of the above medical issues.

Authorities - Corporation, Standing Committee & Medical Council

i. Establishment of Employees’ State Insurance Corporation

● The ESI Act exercises its function through the Employees’ State Insurance
Corporation, established via Section 3, a body created to maintain social
security. It was established on 24 February, 1952. The corporation is
supposed to grant relief to the employees in case of medical emergencies.

ii. Constitution of Standing Committee

● The composition of the Standing Committee of ESIC is as follows:

● A chairman appointed by the Central Government.
● 3 members within the corporation representing 3 state governments.
● 3 members within the corporation representing employers.
● 3 members within the corporation representing employees.
● 1 member within the corporation representing the medical profession.
● One MP belongs to the corporation.
 ● The Director-General.

Powers of the Standing Committee

● The Standing Committee, with its powers defined in Section 18, shall
administer the affairs of the Corporation and may exercise any of the powers
and perform any of the functions of the Corporation, while authorized and
under the jurisdiction of the corporation.
● The Standing Committee shall submit for the consideration and decision of
the Corporation all such cases and matters as may be specified in the
regulations made on this behalf.
● The Standing Committee also, in its discretion, may submit any other case or
matter for the decision of the Corporation.
1. Corporation’s Power to promote measures for the health of insured
persons
● ESIC, in its jurisdiction, may take initiatives that promote health and welfare
amongst its employees, while also promoting rehabilitation and re-
employment for past employees who were injured or disabled in the course
of employment.
● The funding and expenditure for such initiatives is at the discretion of the
Central Government.
2. Meetings
● ESIC, its Standing Committee, and its Medical Council shall meet
periodically to observe rules and procedures in regard to the efficient
functioning of the corporation. Such observations can be specified as per the
regulations in regard to the meeting.
3. Supersession of the Corporation and Standing Committee
● The supersession of the Corporation and the Standing Committee occurs
when there is a persistent failure to perform the duties prescribed to both
parties. In such a case, the Central Government, via a notification in the
Official Gazette, can take the place of the corporation, or with the
consultation of the corporation, can take the place of the Standing
Committee.
● The supersession of the corporation will take place by rendering all of the
seats of the corporation, previously occupied by the members, as vacant.
● In the case of the Standing Committee, a new one shall be constituted
immediately as per Section 8 of the ESI Act.

iii. Medical Benefit Council

 ● The Medical Benefit Council is an advisory body on matters related to the
administration of medical benefits under the ESI scheme.
● Duties of the Medical Benefit Council
● The Medical Council’s functions are as follows:
● Advise the other two ESIC bodies on matters relating to the
implementation that would be beneficial in the medical field. It acquires
certification for the grant of medical benefits.
● Investigate against complaints lodged against medical practitioners with
relevance to the medical relief offered.

iv. Principal Officers

● The Principal Officers referred to under this Section are the Director-
General and/or Financial Commissioner, to act as the CEO for ESIC.
● They serve as whole-time officers and are not permitted to undertake any
work outside of office jurisdiction without the sanction of the Central
Government.
● The time period for the appointment of any principal officer may not exceed
5 years.
● The operation of their fees, disqualification, and cessation of seats operate in
the same manner as that of their subordinates.

Duties of Director General and the Financial Commissioner

The duties of the Director-General and Financial Commissioner are prescribed by

the ESI Act itself in accordance with the Central Government. These tasks may
concern various arenas from management to miscellaneous tasks.

Q.12. Disablement under Employee Compensation Act.

Introduction

● With the advent of the Industrial Revolution and the use of the enormous
powers of steam and electricity, the dangers at workplaces increased
manifold. There was a rapid increase in accidents causing bodily injuries and
deaths. The economic loss caused by accidents caused widespread suffering
among families. Accidents became one of the permanent causes of poverty,
hunger and depreciation. They were not in a position to save any significant
amount as wages were low, as they were workers. Any attempt by workers
 to obtain compensation for such damages from employers was, most of the
time, defeated by employers’ reluctance and harsh disregard for human
suffering. The compensation provisions for such loss under common law
were completely unsatisfactory and not much beneficial to the workers.
● In common law an injured workman or his dependants, in case of his death,
could sue the employer in a civil court and claim damages from him. But in
order that the courts could grant such damages, the claimant had to prove:-
● The injury was the result of an accident;
● The employer was somehow responsible (for his negligence) for the
accident; and
● The amount of compensation due to his injury.
● With industrialization and mechanization accidents became more frequent
and injury to life and limbs became common, protests were raised against
the callous attitude of the employers and the movement for reforms in the
Common Law started in India also.
● As a result, the Workmen’s Compensation Act was passed in 1923. The Act
provides for cheaper and quicker disposal of disputes relating to
compensation through special Tribunals than possible under the Civil Law.

Partial Disablement

● According to Section 2(1) (g) of the Act ‘partial Disablement’ means, where
the disablement is of a temporary nature, such disablement as reduces the
earning capacity of an employee in any employment in which he was
engaged at the time of the accident resulting in the disablement, and, where
the disablement is of a permanent nature, such disablement as reduces his
earning capacity in every employment which he was capable of undertaking
at that time:
● Thus, Section 2(1) (g) classifies partial disablement into two kinds, namely

(a) Temporary partial disablement and,

(b) Permanent partial disablement.

● The distinction between the two types of partial disablement depends on the
fact whether the disablement results in reduction of earning capacity in the
particular employment in which he was engaged at the time of the accident
or in all employment which the employee was capable of doing. In the
former case the partial disablement is called temporary and in the latter case
permanent. Every injury specified in Part Il of Schedule I of the Employees’
 Compensation Act shall be deemed to result in permanent partial
disablement.
● In General Manager, G.I.P. Railway, Bombay v. Shankar , a railway
employee working on a particular job, lost one eye and two teeth in a
railway accident. He was declared unfit for that particular job by the Medical
Officer due to defective vision. But he was offered another job by the
railway administration. He turned down the offer and made a claim for
compensation on the basis of total disablement. It was held that he was
entitled to compensation not on the basis of total but partial disablement.

Total Disablement

● It has been defined under Section 2 (1) (l) to mean such disablement whether
of a temporary or permanent nature as incapacitates a workman for all work
which he was capable of performing at the time of accident resulting in such
disablement and every injury specified in Part I of Schedule I or
combination of injuries specified in Part II of Schedule I where aggregate
percentage, as specified in Part II against those injuries amounts to 100% or
more.

Total disablement is of two types-:

● Temporary Total Disablement– In temporary total disablement the

earning capacity of a workman is lost for a temporary period and in
permanent total disablement the earning capacity of the workman ceases
forever in respect of all the work which he was capable of doing at the
time of the accident resulting in such disablement.
● Permanent Total Disablement– Total permanent disability (TPD) is a
condition in which an individual is no longer able to work due to injuries.
Total permanent disability, also called permanent total disability, applies
to cases in which the individual may never be able to work again.
Case Law

● In V. Jayaraj v. T. P. Transport Corpn. Ltd. , A conductor working in State

owned Transport Corporation lost his hearing capacity due to shock received
by him in an accident in the bus in which he was working. He claimed
compensation under item 6 in Part I of Schedule I of the Act. The
Commissioner fixed the loss of earning capacity at 20% even though the
medical certificate showed that there is l00% hearing loss on the right ear
 and 73.5% hearing loss on the left ear. Hence the appeal was filed under
Section 30 of the Act.

Held

It was held that “the loss of earning capacity has to be calculated in terms of
permanent partial disability. which the workman has been subjected to. The fact
that the workman is continued in the employment and gets old wages will not
absolve the employer from paying the compensation. It was observed that fixing
the loss of earning capacity at 20% by the commissioner cannot be upheld.

Q.13. Explain the nature of similar work providing relevant examples.

● Payment of Remuneration at Equal Rates to Men and Women Workers and

Other Matters
● Chapter 2 of the Act, provides for payment of remuneration at Equal Rates
to Men and Women workers and other matters.
● Duty of employer to pay equal remuneration to men and women workers for
the same work or work of similar nature
● The employer must not discriminate on grounds of sex, when it comes to
remuneration provided for the same amount and nature of work. This Act
was placed because there were numerous cases of women getting paid at a
lower rate than their male counterparts.
● In the case of People’s Union of Democratic Republic v. Union of India
1982, women were only paid 7 per day as opposed to 9.25 per day for male
workers. After hearing both sides, Justice P.N. Bhagwati held that the
authorities need to make sure that the men and women both are paid at par to
each other for similar amounts of work.
● No discrimination to be made while recruiting men and women workers
● The Act suggests that there must not be discrimination in recruitment of
personnel on the basis of sex. The section states that there must be no
discrimination in remuneration from the commencement of the Act and
provides an exception regarding employment of women is prohibited. There
are certain places which are hazardous for employment of women and
children, the section provides immunity from employment at those places.
Q.14. Define the concept of notional extension under the Employee
Compensation Act, 1923.

Notional extension of Employer’s Premises

● When there is a causal connection between the accident and the place where
the employee is working, compensation is payable for the disability or death
of the person according to the Employees Compensation Act. This is the
Doctrine of Notional Extension of the workplace. The theory of this doctrine
was executed in some cases:

Moondra & Co. V/s Mst. Bhawani

● There was a truck driver who was told by his employer to drive a petrol
tanker. The driver found a leak in the tank and sought permission from the
employer to look for the source of the leakage. While searching he lit a
matchstick and the tank caught fire. The driver received burn injuries and
died. It was held by the court that the family members of the deceased would
be entitled to compensation since the accident took place at the workplace
and in the course of employment.
● Not all accidents occur in the premises of the employer or during working
hours of the workman. Accidents can also take place on a public road, when
the workman's work requires him to be there,[14]or outside the working
hours of the workman. Keeping this in mind, Courts have extended the
scope and sphere of employment by the application of the doctrine of
'notional extension'., both in time and space, and a workman may be
regarded as being in the sphere of his employment even though he has not
reached or has left the premises of his employer, before or after his working
hours.
● The doctrine can be applied to every case where it is in the incidence of
employment, which brings a workman in the zone of special danger in order
to fulfill the terms of his employment.[15]
● In the case of Lancashire and Yorkshire Rly v. Highly[16] ,Lord Summer
laid down the test to assess the phrase: “Was it part of the injured person's
employment to hazard, to suffer, or to do that which caused the injury. If
yes, then the accident comes within the sphere of his employment, if no, it
did not.” It is therefore clear that the criterion for an accident to come within
the theory of notional extension, is that the place of accident must be one at
which the workman would not be present except by virtue of his
 employment. Therefore, in cases, where a workman while going to, or while
leaving his work, suffers an accident on the way, the fundamental point that
has to be determined is, whether the workman was at the place of accident
by virtue of his status as workman or by virtue of his status as a member of
the public.

Q.15. Explain the various Administrating bodies appointed under the

provision of Constitution of India and the Bonded Labour [Abolition] Act,
1976.

Introduction

● Furnishing workers with high-interest loans and making them work in

undesired conditions for abated wages to pay off the debt, popularly known
as bonded labour and recently it has become a customary practice, this
fostered huge distress amongst the working class as they were victimized
and made the sitting ducks of the employers vex. The Bonded Labour
System (Abolition) Act, 1976 came as a rescuing chevalier for the labourers
who were coerced to work on bonds. This Act applies to the whole of India
and has an overriding effect as the provisions of this Act will be consistent
notwithstanding any inconsistencies. Section 1, Section 2 and Section 3 of
this Act provides us with the above stated introduction.

Abolition of Bonded Labour System

It was uninhibitedly made intelligible that after the commencement of this Act
there shall be a total veto on the practice of bonded labour. Every individual who
was browbeaten to work on bonds will be unchained and set free. This Act also
guarantees to fortify the virtue and rights of workers to not be forced again as
bonded labourers. Section 4 and Section 5 of this act talks about the same.

Further, this Act makes it perspicuous and comprehensive that any custom,
tradition, agreement, etc. based on which a person or dependant was made to work
as bonded labourers, shall be held nullified and lapsed.

Implementing Authorities

Authorities designated for implementation (Section 10)

 ● There is a hierarchy followed in implementing this Act from the State
government to the officer in charge of implementation. Placed at the top of
the hierarchy is the State government who confers the District Magistrate
with the power to safeguard the provision of this Act. Further, the District
Magistrate delegates the powers to an officer who will have the
implementing powers at the local level.
● Thereby, this acts as a three-tier system of implementation which enhances
the efficiency of this Act with better wings of administration.

The onus to ensure credit by District Magistrate and other (Section 11)

● The District Magistrate appointed by the State government and the officer
who is delegated with powers by the magistrate has the right to protect and
cushion the rights of bonded labourers. This is done so that these labourers
don’ t get back to a situation where they are forced to work on bonds by the
creditors.
● This includes promoting welfare schemes and measures in favour of the
labour class and developing their skills to face this accelerating world.

The onus of District Magistrate and officers authorised (Section 12)

It becomes the delegated duty of the District Magistrate and officers authorised by
the District Magistrate to check on whether after the commencement of this Act
was there any act of bonded labour committed anywhere within their local
jurisdiction.

If there is a commission of any such forced or bonded labour, then the respective
officers shall take appropriate action to veto such an Act and also protect the rights
and dignity of the bonded labourers. Also, they shall promote welfare measures
which would become torchbearers of the right, dignity, and voice of the labourers.

Vigilance Committee

Functions of the Vigilance Committee

The State government is responsible for appointing a vigilance committee at every

district and sub-division as it may think fit through notifying in the Official
Gazette. This is done to have a proper and well-maintained surveillance system.
These provisions are mentioned under Section 13 and Section 14.

The vigilance committee at the district level:

● Consists of a chairman who shall be a district magistrate or a person

nominated by him.
● There should be three members duly belonging to the scheduled caste or
scheduled tribe to mark representation from these spheres.
● Two social workers of the district, not more than three members
representing an official or non-official agency relating to rural
development and a person marking representation of a financial
institution of the district are the other members constituting the
committee.

At the sub-division level:

1. The committee constitutes a chairman who is a sub-divisional magistrate

or a person nominated by him.
2. Three members duly belonging to the scheduled caste or scheduled tribe,
two social workers, not more than three members representing an official
or non-official agency relating to rural development nominated by district
magistrate, a person marking representation of a financial institution of
the sub-division, an officer mentioned under section 10 are the other
members constituting the committee.

The district and sub-divisional magistrate shall provide the vigilance committee
with procedural and other assistance. The entire procedure of the vigilance
committee cannot be held nullified merely because there is any default in their
constitution.

The main functions of the vigilance committee include advising the District
Magistrate and other officials concerning the various provisions of this Act and
their implementation, further they provide for the rehabilitation of bonded labour
both socially and economically. They monitor functions of various banks in their
respective sectors, survey and conduct surveys of cognizable offences and defend
suits instituted against any bonded labourers.
Q.16. Write 5 cases explaining the concept of procedure for fixing and
revising the minimum wages. / Explain the procedure for fixing and revising
the Minimum Wages Act, 1948

Introduction

The interest of workers was kept in mind while passing the Minimum Wages Act.
This legislative protection acts as a protective cushion from the exploitations of
top-level officials. They often subject workers to peanut wages in exchange for
hard-core labour.

Wages Act

● According to Section 3 of the Minimum wages act, 1948 it is the

responsibility of the appropriate government to set a specific yardstick.
● Apart from fixing the minimum rate, the appropriate government shall also
conduct periodic reviews within a span of five years of fixing such rates and
revise the same if felt necessary.
● However, according to section 3(1A), the appropriate government shall not
take any such initiative in regards to scheduled employment having an
employee count of less than 1000.

Procedure for Fixing and Revising Minimum Wage

Fixing Of Minimum Rates u/s 3(2)

The appropriate government can fix

● A minimum piece rate

● Minimum time rate
● Overtime rate which is the minimum time or piece rate as a substitution
of some other rate which would have been otherwise applied for
overtime work performed by employees.
● Guaranteed time rate which is the minimum remuneration rate
applicable to employees who had been working on piece rate till now if
he is again employed on time rate.

While revising or freshly fixing the wage rate under the Minimum wages act
 ● Varying rates of minimum wage shall be fixed for
○ Varying classes of work under the same scheduled
employment
○ Different scheduled employment
○ Various localities and
○ Apprentices, children, adolescents, and adults
● Minimum wage rate can either be fixed by one or more of these wage
periods
○ Month
○ Day
○ Hour
○ Any other larger wage-period which is deemed appropriate

Section 4 of the Minimum wages act states that the appropriate government can
either fix or revise the wage rate of scheduled employment.

However, the following parts shall come under the purview of the appropriate
government in such a case:

● Basic wage rate and special allowance which should be in harmony with
the cost of living index of its workers.
● Basic wage rate either along with or without the cost of living allowance
as well as the authorized cash value of concessions pertaining to the
supply of essential commodities at subsidized rates.
● A comprehensive wage rate comprising the cash value of the
concessions, cost of living allowance and the basic rate.

Alternatively, a competent authority can calculate the cash value of concessions

and cost of living allowance. This has to be done after appropriate intervals and
according to the directions laid down by the appropriate government.

Section 5 of Minimum Wages Act – Procedure To Fix Or Revise Minimum Wages

● When the minimum wage rate of scheduled employment is fixed, or
revised for the very first time under this act,
 ○ As many committees and subcommittees can be appointed as
necessary.
○ A notification containing the relevant proposals can be
published in the official gazette containing information
related to people who might be affected by the same. A date
also needs to be specified within a span of two months from
the date of notification within which the proposals should be
considered.
● The appropriate government can issue a notification in the Official
Gazette after considering the advice of the committee to fix or revise the
minimum wage rate.

Q.17. Settlement of disputes and claims under the Employees State Insurance
Act.

Adjudication of Disputes and Claims

Constitution of Employees’ Insurance Court

● Via a notification in the Official Gazette, an Employees’ Insurance Court

will be constituted by the State Government, with a set number of judges as
per the decision of the State Government.
● The same court may be appointed for two or more local areas, or two courts
or more courts may be appointed for the same local area.

Power of Employees’ Insurance Court

● The Employees’ Insurance Court will function with the same powers as that
of a Civil Court, in which, to enforce the provisions of the ESI Act, it can
enforce witness attendance, compel document and material evidence to be
presented, it can administer an oath and can record evidence.
● All expenses incurred before a proceeding are subject to the discretion and
liability of the court itself.

Reference to High Court

An Employees’ Insurance Court, according to Section 81 may submit any question
of law for the decision of the High Court and if it does so, the answer to the
question shall hold precedence before any judgment.

Appeal

Section 82 defines that no appeal can be laid down as against an order from the
Employees’ Insurance Court. However, appeals from the High Court can stand if
they involve a substantial question of law.

Penalties

Punishments

Sections 84, 85, and 85A cover all the punishments for default listed within the
ESI Act.

● False Statement: Any person caught increasing the payment or benefit to

avoid payment by himself is known to make a false statement. Punishable
with up to six months and/or with fine not greater than Rs. 2000. Insured
persons convicted of this will not be entitled to cash benefits.
● Failure to pay contribution: Persons failing to pay the contribution,
unlawfully deducted wages or benefits, unfairly punishes an employee,
obstructs inspector’s duties, etc. can be punishable for up to three years,
no less than one year with a fine up to Rs. 10000.
● Subsequent Punishment: If a person is found committing the same
offence twice, he shall be punished with imprisonment for a term
extending up to two years with a fine of Rs. 5000 for each subsequent
offence.

Power to recover damages

If an employer fails to pay the contributions due in any aspect, whether it be from
his side or his employee’s side, the Corporation can recover the deficit from him
by way of penalty.
However, this recovery of contribution will not take place until after the person in
charge has been given a reasonable opportunity to be heard regarding the failure to
pay the contribution.
Power of Court to make orders

Along with the power of the court to recover damages, it also has provisions to
enforce judicial orders. If the defaulting employer fails to meet the time conditions
for payments that have been stated by the Court, the employer will be deemed to
have committed another offence, which can be punishable with imprisonment
and/or fines.

Prosecution

Section 86 dictates that any sort of prosecution cannot take place under the
provisions of ESI Act unless it has previously obtained the sanction of the
Insurance Commissioner or any other authorized authority such as the Director-
General of the Corporation. No court lower than a First Class Magistrate can try an
offence under the ESI Act, and no Court will take cognizance of any offence
reported under this Act.

Offences by companies

Taking inference from the concept of a business entity, where every company is its
own individual i.e. it is a separate legal entity of its own and can sue or be sued in a
court of law accordingly.

As such, when an offence is said to have been committed by a company, all of its
managerial employees, who were responsible for the company at the time, will be
tried along with the company, deemed to be guilty of the same offence. They are
liable for punishment accordingly.

Q. 18. Penalties related to Employers under the EmployeeCompensation Act,

1923.

Compensation Payable Under The Act

● Section 4[25] of the Act prescribes the amount of compensation payable

under the provisions of the Act. Amount of compensation payable to a
workman depends on:
● 1) The nature of the injury caused by accident.
● 2) The monthly wages of the workman concerned, and
 ● 3) The relevant factor for working out a lump-sum equivalent of
compensation amount as specified in Schedule IV (as substituted by
Amendment Act of 1984).
● There is no distinction between an adult and a minor worker with respect to
the amount of compensation.

Section 4[26], provides for compensation for:

1) Death;

2) Permanent total disablement;

3) Permanent partial disablement; and

4) Temporary disablement – total or partial.

1) Compensation for Death:

Where death results from an injury, the amount of compensation shall be equal to
50 percent of the monthly wages of the deceased workman multiplied by the
relevant factor, or Rs. 85,000 whichever is more.

2) Compensation for Permanent Total Disablement:

Where permanent total disablement results from an injury, the amount of

compensation payable shall be equal to 60 percent of the monthly wages of the
injured workman multiplied by the relevant factors, or Rs. 90,000, whichever is
more.

3) Compensation for Permanent Partial Disablement:

i) In the case of an injury specified in Part II of Schedule I, such percentage of the

compensation which would have been payable in the case of permanent total
disablement as is specified therein as being the percentage of the loss of earning
capacity caused by the injury; and in other words, the percentage of compensation
payable is proportionate to the loss of earning capacity permanently caused by the
Scheduled injury. Thus, if the loss of earning capacity caused by an injury
specified in Part II of Schedule I is 30 percent, the amount of compensation shall
be 30 percent of compensation payable in case of permanent total disablement.

ii) In the case of an injury not specified in Schedule I such percentage of the
compensation payable in the case of permanent total disablement as is
proportionate to the loss of earning capacity (as assessed by the qualified medical
practitioner) permanently caused by the injury.

4) Compensation for Temporary Disablement:

A half monthly payment of the sum whether total or partial results equivalent to
25% of monthly wages of the injured workman to be paid in the manner
prescribed.

5) Compensation to be Paid when due and Penalty for Default:

Section 4A provides for the payment of compensation and the penalty for default.
It provides that compensation shall be paid as soon as it falls due. Section 4
mandates the employer to pay compensation as soon as it falls due to the victim or
his or her legal heirs.

However, where the employer does not accept the liability for compensation to the
extent claimed, he shall be bound to make provisional payment based on the extent
of liability which he accepts, and such payment shall be deposited with the
Commissioner or made to the workman, as the case may be, without prejudice to
the right of workman to make any further claim.

Delayed payment or deposit of compensation entails interest as well as penalty

Delayed payment or deposit of compensation entails interest @ 6 % p.a. as well as

a penalty not exceeding 50% of the amount.

Payment of compensation either to the workman or to deposit it with the

Commissioner
Section 4A (2) states that, in the first place, the employer has to accept the extent
of his liability for payment of compensation and on that basis he has to make
payment either to the workman or to deposit with the Commissioner.[28] The
requirement of this sub-section is payment to the workman and not to any other
person including his heirs and legal representatives. It takes within its sweep the
case where the workman has not breathed his last on account of the accident met
with by him in the course of his employment.

Sub-section (3) of section 4A is a beneficial provision

It is evident that sub-section (3) of section 4A is beneficial provision made for the
benefit of the employee, having regard to the scheme of the Act, the provision for
payment of interest and of penalty have been enacted with a view to deter the
employer from taking pleas and avoiding payment of the compensation which
becomes payable.[30]

Sub-section (3) of section 4A is not applicable for fixing rate of interest in a claim
under the Motor Vehicles Act.

Section 4A (3) of the Workmen’s Compensation Act is not applicable in the matter
of fixing rate of interest in a claim under the Motor Vehicles Act.

Two Ways of Claiming Compensation

An injured workman may file a civil suit for damages against the employer.
Section 3(5),[32] however, provides that if such a suit is filed, compensation
cannot be claimed under the Act and if compensation has been claimed under the
Act, or if an agreement has been entered into between the employer and the
workman for the payment of compensation, no suit can be filed in the civil court.
Thus, the workman must choose between two reliefs:

(i) civil suit for damages and

(ii) claim for compensation under the Act.

He cannot have both. In a civil suit for damages, it is open for the employer to
plead all the defences provided by the law of Torts. Therefore, a civil suit is an
unsafe procedure for a workman and is rarely resorted to.

Liability of Principal Employer

The Principal Employer is liable to pay the amount of compensation for the injury
suffered by the workman employed through the contractor, if the accident arises
because of an accident arising out of and during the course of employment.

Payment of Compensation Only Through Commissioner

A Commissioner for Workmen’s Compensation is appointed by the Government.

The compensation must be paid only through the Commissioner in case of death or
total disablement. Any payment to workmen under the Act must be made only
through the Commissioner. Direct payment to the workman or his dependents is
not recognized at all as compensation.[33] However, in case of death, if the
employer has paid some compensation to the dependent, that will be refunded to
the employer. Expenditure made by the employer for medical treatment of a
workman is not regarded for purposes of the compensation.

Q.19. Define the concept of Attachment under the Employee Compensation

Act, 1923.

In the context of the Employee Compensation Act, 1923, attachment refers to the
legal process by which the compensation payable to an employee or their
dependents is seized or attached to satisfy a debt or liability owed by the employee
or their dependents. It allows a creditor to claim the compensation amount directly
from the employer to fulfill the outstanding debt or liability.

According to Section 8 of the Employee Compensation Act, if a person entitled

to receive compensation under the Act (such as an injured employee or the
dependents of a deceased employee) has any existing debts or liabilities, the
employer may be required to pay the compensation amount to the person entitled
to receive it, subject to the following conditions:
1. The employer must receive notice of the debt or liability: The person claiming
the debt or liability must give notice in writing to the employer and the
Commissioner of Employee Compensation stating the nature and amount of the
debt or liability.

2. The Commissioner's approval: The Commissioner of Employee Compensation

must approve the claim for attachment. The Commissioner will consider the nature
and amount of the debt or liability and the financial condition of the person entitled
to receive compensation.

3. Limitations on attachment: The Act specifies that only a certain portion of the
compensation amount can be attached, not exceeding one-third of the total
compensation payable.

The purpose of attachment under the Employee Compensation Act is to strike a

balance between providing the necessary compensation to the injured employee or
their dependents and addressing any existing debts or liabilities of the person
entitled to receive the compensation.

It's important to note that the Act provides for the attachment of compensation for
debts or liabilities existing at the time of the compensation payment. It does not
allow attachment for future debts or liabilities that may arise after the
compensation is paid.

Q. 20. Provisions related to charge and assignment under the Employee

Compensation Act.

Section 9: Compensation not to be assigned, attached or charged

Compensation not to be assigned, attached or charged, save as provided by this

Act, no lump sum or half- monthly payment payable under this Act shall in any
way be capable of being assigned or charged or be liable to attachment or pass to
any person other than the workman by operation of law, nor shall any claim be set
off against the same.

Q. 21. Explain the liability for contractors and employees under the employee
compensation act.

Under the Employee Compensation Act, the liability for contractors and employees
differs based on their respective roles and relationships with the employer. Here's
an explanation of their liabilities:

1. Liability for Contractors:

- Principal Employer: The principal employer is primarily responsible for

providing compensation to employees, including contract workers, in case of
injury or death arising out of and in the course of employment. The principal
employer is liable to pay compensation directly to the employee or their
dependents, regardless of whether the injury or death occurred due to the
negligence of the contractor or their employees.

- Contractor: While the contractor may not be directly liable for paying
compensation to the employee or their dependents, they have a duty to provide a
safe working environment and take necessary safety measures for their employees.
If the contractor fails to fulfill their duty, they may be held accountable for any
negligence or wrongful act that led to the injury or death of an employee. In such
cases, the principal employer may have the right to claim indemnification from the
contractor for the compensation paid to the employee or their dependents.

Case laws: Indian Iron & Steel Co. Ltd. v. Bhagwan Das (1978): The Supreme
Court of India held that the principal employer is liable to pay compensation to
employees, including contract workers, for injuries arising out of and in the course
of employment, irrespective of whether the negligence lies with the principal
employer or the contractor.

Workmen of Nilgiri Coop. Marketing Society Ltd. v. Union of India (2004):

The Supreme Court clarified that the contractor is primarily responsible for
providing a safe working environment for their employees and must take necessary
safety measures. If the contractor fails in their duty and the employee suffers an
injury, both the contractor and the principal employer may be held liable.
2. Liability for Employees:

- Employees: Employees are generally not liable to pay compensation under the
Employee Compensation Act. The Act focuses on providing compensation to
employees and their dependents for workplace injuries or fatalities without
requiring them to establish fault or negligence on the part of the employer. The Act
ensures that employees receive compensation regardless of their own actions or
contributory negligence.

Case law: Workmen of Assam Railways & Trading Co. Ltd. v. The Union of
India (1964): The Supreme Court held that the Employee Compensation Act
provides a no-fault liability system, meaning that the employee is entitled to
compensation for injuries or death arising out of and in the course of employment,
regardless of their own actions or contributory negligence.

It's important to note that the liabilities outlined above are based on the general
principles of the Employee Compensation Act. The specific liabilities and
obligations of contractors and employees may vary depending on the contractual
agreements, industry-specific regulations, and any other applicable laws. It is
advisable to consult legal experts or relevant authorities for precise understanding
and interpretation in specific cases.

Q.22. Explain the concept of bonded debt under the bonded labour abolition
act.

In the case of Bandhua Mukti Morcha Vs. UOI [6], Justice Bhagwati gave a very
liberal, broad and expansive definition to the bonded labour system in India. The
court went beyond the plain literal definition of Section 2(g) of the Act and
broadened its scope while interpreting the case. As per Justice Bhagwati's
interpretation of this case, it was not necessary to prove any element of loan, debt
or advance beyond the reasonable doubt in a creditor-debtor relationship as they
belong to two diametrically opposite sectors of the society.

Since the debtor is usually poor, has lesser access to resources and in need of
defence, whereas the creditor is richer, influential and socially more dominant thus
they are bonded in a relationship which is based on unequal exchange. In this case,
the main issue was about the mere existence of bonded labour in a stone quarries
factory. It was alleged by the workers that they were compelled to migrate from
various states and were then forced into a bonded labour system.

The workers also alleged that they lived in inhumane and miserable conditions and
therefore alleged a gross violation of the Act. The Apex court took into account the
miserable conditions which the workers were subjected to and also recognised the
right of these workers to live with dignity.

The entire system of bonded labour lies within the fact that there is an obvious
existence of social inequalities i.e. where one is more affluent than the other which
in turn forces the weaker individuals to depend upon the affluent individuals for
their survival. Therefore, this unequal dependence leads to immense brutalities.
Despite having several legislations to protect bonded labour, this evil system
continues to exist in Indian society. This system needs to be eradicated from the
deep roots of our country as it strengthens caste-based discriminations and is
violative of the basic structure of our constitution, equality as is enshrined under
Article 14 of the Indian constitution.

Q.23. Explain and discuss the concept of dependance under the employee
compensation act, 1923

Dependents
Dependents mean any of the following relatives of a deceased workman. Section 2
(1) (d) of WCA 1923 classifies dependents into three classes. In the case of New
India Insurance Co Ltd vs Man Singh and others, 1984, MP HC held that persons
in these classes do not have mutually exclusive claim to compensation. They can
simultaneously claim compensation.

1. Widowed mother, widow, minor legitimate or adopted son, unmarried

legitimate or adopted daughter. In this case, it is irrelevant whether they
are fully or partially dependent on the earnings of the workman.
2. Legitimate son or daughter if –
A. they are fully dependent on the earnings of the workman.
B. if they are infirm.
C. if they are above 18.
3. The persons in this class must be dependent wholely or partially on the
earnings of the workman to claim compensation.
 A. widower
B. a parent other than widowed mother
C. an minor illegitimate son, an illegitimate or legitimate or
adopted daughter if minor and married or if minor and widowed
D. widowed daughter in law
E. a minor brother, an unmarried sister, or widowed sister if minor.
F. a minor child of a predeceased son.
G. a minor child of a predeceased daughter if no parent of the child
is alive.
H. a paternal grandparent if no parent of the worker is alive.
In the case of Ramji vs Lalit Kumar Bardiya, 1995, MP HC held that the parents
have the right to claim compensation because the workman was living jointly with
them. In joint families there is a sharing of income and responsibilities. Even if the
workman did not contribute to the family fund that was only because he was not
being paid by the employer. The family would have received the benefit of his
wages otherwise.

Q.24. Explain the various remedies available to the employer against

strangers under the employee compensation act, 1923

Section 13 in The Employees Compensation Act, 1923 : Remedies of employer

against stranger.- Where a workman has recovered compensation in respect of any
injury caused under circumstances creating a legal liability of some person other
than the person by whom the compensation waspaid to pay damages in respect
thereof, the person by whom the compensation was paid and any person who has
been called on to pay an indemnity under section 12 shall be entitled to be
indemnified by the person so liable to pay damages as aforesaid.

Under the Employee Compensation Act, 1923, the remedies available to an

employer against strangers (third parties) in cases of injury or death of an
employee are limited. The Act primarily focuses on providing compensation to
employees and their dependents for workplace injuries or fatalities, rather than
addressing remedies against third parties.

However, there are a few situations where an employer may have certain limited
remedies against strangers:
1. Right of Subrogation: The employer may have the right of subrogation if an
employee suffers an injury or death due to the negligence or wrongful act of a third
party, and the employer has paid compensation to the employee or their
dependents. Subrogation allows the employer to step into the shoes of the
employee or their dependents and pursue a legal claim against the responsible third
party to recover the compensation amount paid.

Case law: In the case of Bholi Devi v. Oriental Insurance Co. Ltd. and Anr.
(2008), the Supreme Court of India held that the employer who has paid
compensation under the Employee Compensation Act to the dependents of the
deceased employee has the right of subrogation and can initiate legal proceedings
against the third party responsible for the employee's death.

2. Civil Lawsuits: The employer may choose to file a civil lawsuit against the third
party responsible for the injury or death of the employee. This is separate from the
compensation provided under the Employee Compensation Act. The employer can
seek damages from the third party, including medical expenses, loss of earnings,
pain and suffering, and other related costs. The employer will need to prove
negligence or wrongful act on the part of the third party to succeed in such a
lawsuit.

Case law: In the case of Subash Chandra v. Divisional Manager, United India
Insurance Co. Ltd. (2006), the Madras High Court held that the employer has the
right to file a separate civil suit for damages against the third party even if
compensation has already been paid under the Employee Compensation Act.

It's important to note that the remedies mentioned above are not inherent rights
under the Employee Compensation Act but are general legal principles applicable
in cases of personal injury or wrongful death.
Q.25. Write down the aims and objectives of the bonded labour system act.

● Indian Constitution prohibits any form of forced labour and any

contravention to this shall be punished in accordance with law[1]. Bonded
labour is a kind of forced labour in which the person is forced to sell his
labour in order to repay his debt or to repay the amount taken by his remote
ancestors. Bonded labour is an utter violation of human right and dignity. It
is also known as debt bondage. A bonded labour has to offer his labour to
the creditor until the debt is paid or the fixed time period gets over. In spite
of the provisions, a system exists where the debtor or his descendents have
to work for the creditor with no wages in order to satisfy the debt. This
practice leads to the exploitation of labourers and deterioration of their
health too. At times it happens that the several generation works under the
bondage to repay the small amount of loan because of increasing interest
rate from time to time. Bonded labors do not have any other option rather
they have to agree to the terms and conditions of their creditor. It can be
inferred that the bonded labour does not have the power to bargain and no
power to refuse to the terms and conditions of their creditor.
● Poverty, heavy debts, exclusion from the society, caste based discrimination
are some of the prominent causes of bonded labour. The labourers are
required to work in agricultural fields, brick industry, manufacturing plants
and modus operandi remains same everywhere. Many organizations
recognized the harms of bonded labour and raised their voice against such
system. Accordingly, the Bonded Labour Abolition Act, 1976 was passed by
the Parliament. As per this Act, bonded labours were freed from obligation
to provide any bondage and their debts were also waived.
● The concept of bonded labour in India is not novel, rather it is another form
of slavery which is an amalgamation of inhumane exploitation and
discrimination. It originates from underlying socio-economic structures
which can be mainly characterised as the "caste system" wherein the
majority of bonded labours belong to the Dalit or indigenous class of people
like the Adivasis. In the ancient Indian era, there was proximity between the
occupational status and the caste of an individual, the same system continues
to be prevalent even today.
● The entire mechanism of bonded labour was much more prevalent in the
pre-independence period, following which Article 23 of Indian constitution
was drafted which prohibited the practice of any form of forced labour and
made all such practices punishable. Even though there was a constitutional
provision which prohibited any form of forced labour, the parliament failed
to enact a law which explicitly abolished the practice of bonded labour.
● Post-independence several states like Orissa (Orissa Debt Bonded Abolition
Regulation, 1948), Kerala (Kerala Bonded Labour System Abolition, 1975)
and Rajasthan (Rajasthan Sagri Abolition Act,1961) enacted state
legislations which penalised the practice of bonded labour. Despite several
states penalising the practice of bonded labour, there was no uniform law
until 1976 which prohibited and penalised the practice of bonded labour.
● The bonded labour system (Abolition) Act, 1976 (herein referred to as the
Act) was enacted to abolish the system of bonded labour to not only prevent
physical exploitation of the people belonging to weaker sections but also to
ensure equality and right to life as enshrined under the Indian Constitution.
The Act defines a bonded labourer as "a labourer who incurs, or has, or is
presumed to have incurred a bonded debt"[1].
●
● The most significant feature of a bonded labourer is his loss of power to
bargain i.e. lack of ability to raise a voice against the creditor who subjects
him to inhumane and unequal treatment. When the labourer is unable to
reimburse the debt to the creditor in a similar form, then he renders services
on conditions which are not only brutal but also inhuman and
discriminatory. The entire system is a representation of unequal exchange
which not only represents severe violations of human rights but is also a
disgrace to the labour's dignity.
● The bonded labour system is an outcome of a debt-bondage system under
which the debtor agrees along with the creditor that he would render services
either himself or through his family members for a time period without any
form wages.
● Under the Indian Constitution, Article 23(1) prohibits human trafficking and
other forms of forced labour and also provides that contraventions to this
article are punishable in accordance with the law. [3] In India, the scope and
content of this article came in for judicial interpretation in the case of
 People's Union for Democratic Rights Vs. UOI [4] (Asiad workers case)
in 1982.
● While disposing of the writ pertaining to the Supreme Court made the
following observations:
● All forms of forced labour were prohibited under Article 23 of the Indian
Constitution.
● Remuneration is not a criterion under bonded labour i.e. it is not important
whether the debtor is remunerated for his labour.
● Wages below limits as per the minimum wages act would lead to forced
labour.
● If labour arises out of any form of compulsion or force it would come within
the ambit of forced labour and would therefore be covered by article 23 of
the Indian Constitution.
● All forms of labour are covered within the ambit of article 23 of the Indian
Constitution, even if the labour voluntarily enters into such a contract with
the debtor. Forced labour can arise in multiple ways like:
1. physical force,
2. force which is extended via a legal provision such as fines in cases where the
labour fails to provide services, and
3. any forms of compulsion or force arising out of hunger, poverty or
destitution.
● In the case of Bandhua Mukti Morcha Vs. UOI [6], Justice Bhagwati gave
a very liberal, broad and an expansive definition to the bonded labour system
in India. The court went beyond the plain literal definition of Section 2(g) of
the Act and broadened its scope while interpreting the case. As per Justice
Bhagwati's interpretation of this case, it was not necessary to prove any
element of loan, debt or advance beyond the reasonable doubt in a creditor-
debtor relationship as they belong to two diametrically opposite sectors of
the society.
Q.26. Explain the concept of fatal accident providing the provisions
mentioned under the employee’s compensation act, 1923.

The concept of a fatal accident, as defined under the Employee's Compensation

Act, 1923, refers to an unfortunate incident that leads to the death of an employee
during the course of employment. It could be an accident or an occupational
disease resulting from work-related activities.
The Employee's Compensation Act, 1923, is a legislation in India that provides for
compensation to employees or their dependents in the event of a work-related
injury or death. Here are the key provisions related to fatal accidents under the Act:

1. Employer's Liability: The Act establishes the employer's liability to pay

compensation for the death of an employee arising out of and in the course of
employment.

2. Compensation Amount: The Act prescribes the compensation amount to be paid

to the dependents of the deceased employee. The compensation is calculated based
on a percentage of the monthly wages of the employee and factors such as the
employee's age and the number of dependents.

3. Dependents' Entitlement: The Act defines dependents who are eligible to receive
compensation. It typically includes the spouse, children (including legitimate and
adopted), and dependent parents. In the absence of any such dependents, other
dependent relatives may be considered.

4. Time Limit for Filing Claims: The Act specifies a time limit within which a
claim for compensation must be filed. Generally, it should be filed within two
years from the date of the fatal accident, but this limit can be extended in certain
circumstances.

5. Employer's Obligations: The Act places obligations on employers to provide

medical aid, report accidents leading to death, and maintain records of accidents.
Employers are required to inform the Employees' Compensation Commissioner or
the appropriate authority about the accident and the resulting death.

6. Insurance Coverage: Employers are encouraged to take insurance policies to

cover their liability under the Act. Such insurance policies provide financial
protection to employers by covering the compensation payable to the dependents
of deceased employees.
It is important to note that the provisions of the Employee's Compensation Act,
1923, may vary depending on the jurisdiction and any subsequent amendments
made to the Act. It is advisable to consult the specific legislation and seek legal
advice to understand the exact provisions applicable in a particular case.

Q.27. Define the word ‘compensation’ under the employee compensation act,
1923.

Under the Employee's Compensation Act, 1923, the term "compensation" refers to
the financial benefits provided to an employee or their dependents in the event of
an employment-related injury, disability, or death. It is a form of monetary
assistance that aims to compensate the employee or their family members for the
losses and hardships suffered due to the work-related incident.

The Act establishes the employer's liability to pay compensation, which is

determined based on the nature and severity of the injury or the cause of death.
Compensation may include various components such as:

1. Medical Expenses: The Act covers the expenses incurred for the medical
treatment of the employee's injury or illness. It includes the cost of medical
consultations, hospitalization, medication, rehabilitation, and related expenses.

2. Disability Benefits: In case the employee sustains a permanent or temporary

disability that hinders their ability to work, the Act provides for disability benefits.
The compensation amount is typically a percentage of the employee's wages and
varies based on the extent of the disability.

3. Dependent Benefits: In the unfortunate event of an employee's death, the Act

entitles the dependents of the deceased employee to receive compensation. The
dependents, such as the spouse, children, or parents, may receive a monthly or
lump-sum payment as determined by the Act.
4. Funeral Expenses: The Act may cover reasonable funeral expenses incurred due
to the employee's death, including the costs of cremation, burial, or transportation
of the deceased employee's body.

The specific calculation and provisions for compensation under the Employee's
Compensation Act, 1923, may vary depending on factors such as the nature of the
injury, the employee's wages, and any subsequent amendments to the Act. It is
recommended to refer to the Act itself and consult with legal experts to understand
the precise details and entitlements regarding compensation in a particular case.
Amount of Compensation:
Section- 4 of the Employee's Compensation Act, 1923 defines amount of
compensation when Death results from injury- If the employee dies due to any
such reason then amount payable is equal to rupees eighty thousand or fifty percent
of the monthly wages multiplied by a factor as per mentioned in the Schedule 4 of
the Act whichever is more.

When permanent total disablement is caused by injury- If by any chance the

employee faces permanent total disablement due to injury then the amount payable
is ninety thousand rupees or sixty percent provided whichever is more.When
permanent partial disablement is caused by injury- In such a case the amount
payable is ninety thousand rupees or sixty percent of the disablement.
Q.28. Exemption of employer from liability in certain cases under the
minimum wages act, 1948.

Exemptions of the employers in certain cases

When an employer is accused under this Act and brought before the court he will
be exempted from such offence under the following circumstances:

1. The employer has used due diligence in the execution of all the
provisions of the Act.
2. The other person has committed the offence without his knowledge,
connivance or consent. Then in that case the other will be held liable as if
he were the employer and the employer will be discharged.
Q.29. Explain the procedure for fixing and revising minimum wages under the
minimum wages act, 1948

Procedure for Fixing and Revising Minimum Wage

Fixing Of Minimum Rates u/s 3(2)

The appropriate government can fix

● A minimum piece rate

● Minimum time rate
● Overtime rate which is the minimum time or piece rate as a substitution
of some other rate which would have been otherwise applied for
overtime work performed by employees.
● Guaranteed time rate which is the minimum remuneration rate
applicable to employees who had been working on piece rate till now if
he is again employed on time rate.

While revising or freshly fixing the wage rate under the Minimum wages act

● Varying rates of minimum wage shall be fixed for

○ Varying classes of work under the same scheduled

employment
○ Different scheduled employment
○ Various localities and
○ Apprentices, children, adolescents, and adults
 ● Minimum wage rate can either be fixed by one or more of these wage
periods
○ Month
○ Day
○ Hour
○ Any other larger wage-period which is deemed appropriate

Read more about Penalty for Offences under the Act (Section 20) here

Section 4 of the Minimum wages act states that the appropriate government can
either fix or revise the wage rate of scheduled employments.

However, the following parts shall come under the purview of the appropriate
government in such a case:

● Basic wage rate and special allowance which should be in harmony with
the cost of living index of its workers.
● Basic wage rate either along with or without the cost of living allowance
as well as the authorized cash value of concessions pertaining to the
supply of essential commodities at subsidized rates.
● A comprehensive wage rate comprising of the cash value of the
concessions, cost of living allowance and the basic rate.
Alternatively, a competent authority can calculate the cash value of concessions
and cost of living allowance. This has to be done after appropriate intervals and
according to the directions laid down by the appropriate government.

Let us understand more about Deductions from Wages here in detail

Section 5 of Minimum Wages Act – Procedure To Fix Or Revise Minimum Wages

● When the minimum wage rate of scheduled employment is fixed, or
revised for the very first time under this act,
○ As many committees and sub-committees can be appointed as
necessary.
○ A notification containing the relevant proposals can be
published in the official gazette containing information
related to people who might be affected by the same. A date
also needs to be specified within a span of two months from
the date of notification within which the proposals should be
considered.
● The appropriate government can issue a notification in the Official
Gazette after considering the advice of the committee to fix or revise the
minimum wage rate.

Q.30. The power of authorities for implementing the provisions of Bonded

labour act, 1976.

The Bonded Labour System (Abolition) Act, 1976 provides authorities with
specific powers to implement its provisions and combat bonded labor. Here are the
powers vested in authorities under the Act:
1. Identification of Bonded Labourers: The authorities, typically comprised of
District Magistrates and Sub-Divisional Magistrates, have the power to identify
and release individuals who are subjected to bonded labor. They are responsible for
conducting surveys, investigations, and inspections to identify instances of bonded
labor.

2. Release and Rehabilitation: Once bonded laborers are identified, the authorities
have the power to order their release from bondage and initiate their rehabilitation.
They can issue release certificates to freed bonded laborers, ensuring their freedom
and protection.

3. Prosecution and Punishment: Authorities can initiate legal proceedings against

those who have engaged in or are responsible for the practice of bonded labor.
They have the power to prosecute offenders and ensure appropriate punishment is
imposed under the Act.

4. Monitoring and Inspections: Authorities are entrusted with the task of

monitoring compliance with the Act's provisions and conducting regular
inspections of establishments to detect any instances of bonded labor. They have
the authority to enter premises, seize documents, and take necessary actions to
enforce the law.

5. Advisory and Awareness: Authorities play a crucial role in creating awareness

about the Act's provisions and rights among bonded laborers. They provide
guidance, assistance, and advisory services to individuals affected by bonded labor,
helping them understand their rights and seek redress.

Important Case Laws:

1. Bandhua Mukti Morcha v. Union of India (1984): In this landmark case, the
Supreme Court of India emphasized the importance of the Bonded Labour Act and
issued various directions to combat bonded labor effectively. The Court
highlighted the role of authorities in identifying, releasing, and rehabilitating
bonded laborers.

2. People's Union for Democratic Rights v. Union of India (1982): The Supreme
Court emphasized the duty of authorities to take proactive measures for the
implementation of the Bonded Labour Act. It highlighted the need for regular
inspections, effective enforcement, and rehabilitation of freed bonded labourers

Q.31. Explain the concept of equal remuneration to men and women

supplementing the provisions of equal remuneration act, 1976.

Q.32. "Equal Pay for Equal Work has no longer remained a Directive
Principle of State Policy only, but a complete legislation by virtue of the Equal
Remuneration Act, 1976. Comment.

The concept of equal remuneration to men and women, as supplemented by the

provisions of the Equal Remuneration Act, 1976, focuses on eliminating gender-
based wage discrimination and ensuring that men and women receive equal pay
for equal work. The Act aims to promote gender equality in the workplace and
address the gender pay gap.

Key features and provisions of the Equal Remuneration Act, 1976:

1. Equal Pay for Equal Work: The Act mandates that employers provide equal
remuneration to men and women for the same or similar work, irrespective of their
gender. The work may be performed in the same establishment or different
establishments, but the principle of equal pay applies.
2. Prohibition of Discrimination: The Act prohibits employers from discriminating
against women in matters of recruitment, training, promotion, or transfer on the
grounds of gender. It promotes equal opportunities for both men and women in the
workplace.

3. Comparability of Work: The Act focuses on the principle of comparability,

which means that the work performed by men and women should be comparable in
terms of skill, effort, responsibility, and working conditions. It considers factors
such as nature of work, skill required, and effort expended to determine
comparability.

4. Prohibition of Gender-based Wage Discrimination: Employers are prohibited

from paying women lower wages than men for performing the same or similar
work. Any distinction, exclusion, or preference based on gender that leads to
discrimination in remuneration is not allowed.

5. Enforcement and Penalties: The Act establishes mechanisms for the enforcement
of its provisions. It empowers the appropriate government to appoint authorities
responsible for receiving complaints, conducting inquiries, and enforcing
compliance with the Act. Penalties are prescribed for non-compliance, including
fines and imprisonment.

Important Case Laws:

1. Air India vs. Nargesh Meerza (1981): The Supreme Court of India held that
the principle of "equal pay for equal work" is a fundamental right guaranteed under
Articles 14 and 39(d) of the Indian Constitution. The Court emphasized the need
for gender equality in wages and stated that women cannot be discriminated
against in matters of pay.

2. Municipal Corporation of Delhi vs. Female Workers (Muster Roll) (1990):

The Delhi High Court held that women employed on a muster roll basis (temporary
employment) were entitled to receive the same wages as their male counterparts
doing similar work. The Court emphasized that the principle of equal pay applies
to all forms of employment, irrespective of the mode of engagement.

Q.33. Who is an Employer under the Payment of the Compensation Act, 1923,
along with his liability to pay compensation? How is compensation calculated?

Under the Payment of Compensation Act, 1923 (commonly referred to as the

Employee Compensation Act), the term "employer" has a broad definition. It
includes any person or entity, whether an individual, a firm, or a corporation, who
employs workmen and is liable to pay compensation under the Act. The Act covers
both private and government employers.

The liability of the employer to pay compensation arises when an employee

sustains an injury or dies as a result of an accident arising out of and in the course
of their employment. The Act provides for no-fault liability, meaning the
employer's responsibility to pay compensation is not contingent upon proving fault
or negligence on their part.

The calculation of compensation under the Employee Compensation Act is

based on the following factors:

1. Nature of Injury: The Act categorizes injuries into four types, each assigned a
specific percentage of the monthly wages of the employee as compensation. These
categories are:

a. Temporary Total Disablement: Compensation is paid at a rate of 50% of the

monthly wages of the employee.

b. Temporary Partial Disablement: Compensation is paid at a rate proportionate

to the loss of earning capacity.

c. Permanent Total Disablement: Compensation is paid at a rate of 60% of the

monthly wages.
 d. Permanent Partial Disablement: Compensation is calculated based on the
percentage of loss of earning capacity determined by a qualified medical
practitioner.

2. Monthly Wages: The compensation is calculated based on the monthly wages

of the employee. The term "wages" includes the basic pay, dearness allowance, and
any other regular emoluments received by the employee.

3. Minimum and Maximum Compensation: The Act sets a minimum and

maximum limit for compensation. The minimum compensation payable is
determined by the relevant state government and may vary from state to state. The
maximum compensation payable is capped at 120 months' wages.

It's important to note that in case of the death of an employee, compensation is

payable to the dependents of the deceased employee as per the provisions of the
Act. The Act specifies the percentage of wages payable to different categories of
dependents.

The calculation of compensation under the Employee Compensation Act is

intended to provide fair and just compensation to the injured employee or the
dependents of a deceased employee, taking into account the nature and extent of
the injury and the employee's wages. It is advisable to consult the specific
provisions of the Act and seek professional advice for precise calculations in
individual cases.

Q.34. Discuss various contributions to be made under the Esic act,1948?

Under the Employees' State Insurance Act, 1948, employers and employees are
required to make contributions towards the Employees' State Insurance (ESI)
scheme. The contributions are intended to fund the social security benefits
provided by the scheme.
Here are the various contributions to be made under the ESIC Act, 1948:

1. Employer's Contribution:

- The employer is responsible for contributing 4.00% of the employee's wages to

the ESI scheme.

- The contribution is calculated on a monthly basis and must be paid by the

employer to the ESIC (Employees' State Insurance Corporation).

2. Employee's Contribution:

- The employee's contribution is 0.75% of their wages.

- The contribution is deducted by the employer from the employee's wages and
remitted to the ESIC along with the employer's contribution.

It's important to note that the wage ceiling for the purpose of calculating
contributions is determined by the government and is subject to periodic revisions.

The contributions made by employers and employees are utilized to provide

various social security benefits under the ESIC scheme, including medical care,
maternity benefits, sickness benefits, disablement benefits, and dependent benefits.

Additionally, the ESIC Act, 1948 also imposes penalties for non-compliance or
delayed payment of contributions. Employers who fail to pay the contributions
within the specified time may be liable to pay penalties and interest on the
outstanding amounts.

It's crucial for employers and employees to comply with the contribution
requirements under the ESIC Act to ensure access to the social security benefits
provided by the scheme. It's advisable to consult the ESIC's official website or seek
professional guidance for the most up-to-date information on contribution rates and
compliance procedures.

SN

1. Discuss the various objectives and features of the Minimum Wages Act,
1948.

2. Medical benefit council

3. Aims and objectives of the bonded labour system abolition act 1976.

4. Total disablement

5. Work of similar nature

6. Employee under the employee state insurance corporation act, 1948

7. Define wages under the payment of wages act, 1936

8. Object and features under the minimum wages act, 1948

9. Occupational diseases
Under the Employee Compensation Act, 1923 (also known as the Workmen's Compensation
Act, 1923), compensation is provided to employees or their dependents in the event of work-
related injuries, accidents, or occupational diseases. Occupational diseases refer to illnesses or
health conditions that are caused by exposure to certain hazards or conditions in the workplace.

The Act recognizes certain occupational diseases and provides compensation to employees
who suffer from these diseases as a result of their employment. The list of recognized
occupational diseases may vary from country to country, and in India, it is specified under
Schedule III of the Act. Some examples of recognized occupational diseases under the Act
include:

1. Pneumoconiosis (such as silicosis, asbestosis, or coal workers' pneumoconiosis) caused by

inhalation of dust particles in certain industries.
2. Lead poisoning resulting from exposure to lead or its compounds in industries where lead is
used.
3. Occupational asthma caused by exposure to certain substances or allergens in the
workplace.
4. Occupational dermatitis resulting from contact with irritants or allergens in the work
environment.
5. Noise-induced hearing loss due to prolonged exposure to excessive noise levels in certain
industries.

If an employee contracts an occupational disease listed in Schedule III of the Act, they or their
dependents are entitled to compensation. The compensation amount depends on various
factors such as the severity of the disease, the extent of disability or incapacity caused by the
disease, and the employee's monthly wages.

It's important to note that the specific provisions and regulations related to occupational
diseases and compensation may vary between countries, so it's always advisable to refer to the
relevant legislation and regulations in your jurisdiction for accurate and up-to-date information.

10. Wages