2.

LABOUR LAW - II
UNIT - 1
SOCIAL SECURITY AND WELFARE LEGISLATION
Evolution of Social Security Legislation
Social Security means a guarantee provided by the State through its agencies against
certain risks to which members of the society may be exposed. Social Security insures a person
against economic distress resulting from various contingencies and assures him a minimum
level of living consistent with the nations capacity to pay. The concept of social security is based
on the ideals of human dignity and social justice. The underlying idea behind social securing
is that a citizen who has contributed or is likely to contribute to his country’s welfare should be
given protection against certain hazards.
With the growing industrialization, industrial employment involves more risks and hazards
such as non-employment, accidents resulting in death, disablement, personal injury, sickness
etc., unless the industrial workers are protected against these risks, their contribution to the
country’s welfare may not be to the optimum level and they may not be efficient also. Therefore
securing of employment, security against personal injury, security of health, old age should be
provided through adequate legislations.
UNIT - II
THE WORKMEN’S COMPENSATION ACT, 1923
1. Scope, Object and Coverage of the Act
The workmen’s compensation Act was framed with a view to provide for compensation to
a workman incapacitated by injury from accident. The main object of the Act is to impose legal
obligation on this employers to pay compensation to workmen involving accident arising out
of and in the course of employment. After the enactment of the ESI Act, 1948, the workmen’s
compensation Act is not apply to those areas which are covered by the ESI, Act, 1948. The
Act applies to workmen employed on monthly wages not exceeding Rs.1 ,600/- and who are
employed in factories, mines and plantations, transport, construction work, railways and certain
specified hazardous occupations.
2. Employer’s Liability’ for Compensation Sec. 3
The liability of an employer to pay compensation to the following conditions:
a) Personal injury must have been caused to a workman by an accident
b) The accident must have arisen out of and in the course of employment and
c) The injury must have resulted either in death of the workman or in his total or
partial disablement for a period exceeding 3 days.
The terms “Personal Injury”, “Accident”, “Arising out of an in the course of employment”,
“National Extension to Employer’s Premises” “Occupational disease”, “Disablement” etc., are to
be studied thoroughly.

31 LABOUR LAW - II
 Cases:
1. R. B. Moondra and Co. Vs Bhanwari. AIR 1970 Raj.
2. Trustees of Port of Bombay Vs. Yamunabai, AIR 1952 Bom.
3. Smt. Koduri Vs. Potongi Atchamma (1969) LLJ A.P.
4. National Iron and Steel, Co. Ltd., Vs. Manorama. AIR 1953 Cal.
5. Sri Jayaram Motor Service Vs. Pitchammal, 1982 LLJ Mad.
6. Superintending Engineer, Parambikulam Aliar Project, Pollachi Vs, Anandammal,
1983 LLJ. Mad.
7. Salamabegum Vs. Dist. Branch Manager, Maharashtra State Co-Op. Bank 1990.
LLJ. Bom.
8. Saurashtra Salt Manufacturing Co. Vs. Baivalu Raja. AIR 1958. SC.
9. Sukhai Vs. Hukum Chand Jute Mills Ltd. AIR 1957 Gal.
10. Ramaswami Vs. Poongavanam. AIR 1954 SC. Mad.
11. T.N. Sitharama Reddiar Vs. A. Ayyaswami Gounder. AIR 1968 Mad.
12. St. Helens Colliery Co. Ltd., Vs. Hewlston 1924. A.C.
13. Rajanna Vs. Union of India. 1995 LLJ, SC.
14. Steel Authority of India Ltd., Vs. Kanchanbala Mohanly, 1994, LLJ, Orissa.
15. T.N.C.S. Corporation Ltd., Vs. S. Poomalai. 1995 LLJ. Mad.
3. Employer Not Liable to Pay Compensation in the following cases - Proviso to Sec. 3(1)
a) The personal injury does not result in total or partial disablement for a period
exceeding three days.
b) In respect of any injury, not resulting in death, caused by the accident is directly
attributable to.
(i) The workman was under the influence of drink or drug; or
(ii) The wilful disobedience on the part of the workman to an order expressly
given or to a rule expressly framed for the purpose of securing the safety of
the workman; or
(iii) The wilful removal or disregard by the workman of any safety guards or other
device which he knows that they have been provided for the safety of the
workman.
4. Calculation of Compensation :- Sec. 4
1. a) Compensation for Death.
b) Compensation for Permanent total disablement.
c) Compensation for Permanent Partial disablement.
d) Compensation for Temporary disablement whether total or partial.
2. Compensation to be paid when due - Sec. 4A.
3. Method of calculating wages for the purpose of computing the amount of
compensation - Sec. 5.

32 LABOUR LAW - II
 4. Review of compensation paid - Sec. 6.
5. Commutation of Payments - Sec. 7.
6. Distribution of Compensation - Sec. 8.
7. Compensation not to be assigned, attached or charged - Sec.9.
8. Principal employer indemnifies against the contractor and against strangers -
Sec. 12 and 13.

5. Workmen Compensation Commissioner - Sec. 20 - 27.

His powers, functions and procedures followed.

UNIT - III
THE EMPLOYEE’S STATE INSURANCE ACT, 1948
An Act to provide for certain benefits to employers in cases of sickness, maternity and
employment injury.
1. Establishment of ESI Corporation.
a) Features of the Corporation - Sec. 3.
b) Constitution of the Corporation - Sec. 3.
c) Constitution and Powers of Standing Committees - Sec.8 and 18.
d) Medical Benefit Council - Duties - Sec. 10 and 22.
e) Principal Officers of the Corporation 8 their duties Sec. 16 and 23.
f) ESI Fund: Sec. 26, 28, 32 to 35.
2. All employees to be insured - Sec. 38 conditions to be satisfied for an employee to
be insured.
3. Contribution Conditions governing contributions. Sec.39, 40 to 45-B.
4. Benefits Provided by the Act.
a) Sickness Benefit - SecA8 and 49.
b) Medical Benefit - Sec. 57 and 58.
c) Maternity Benefit - Sec. 50.
d) Disablement Benefit - Sec. 51 A to 51 D, 52A, 54 and 54A.
e) Funeral Benefit - Sec. 46.
f) Dependent Benefit - Sec. 52.
5. Adjudication of Disputes and Claims.
a) Constitution of Employee’s Insurance Court. - Sec. 74.
b) Matters to be decided by the Insurance Court - Sec. 75.
c) Procedure and Powers of the Insurance Court - Sec. 76 - 79.
Cases:
1. Kirloskar Brothers Ltd., Vs. ESI Corporation (1996) 1 LLJ. SC.
2. Royal Talkies Vs. ESI Corporation, A 1 R 1978 SC.
3. E.S.I.C. Vs. Hotel Kalpaga International 1993 LLJ. SC.

33 LABOUR LAW - II
 UNIT - IV
THE MATERNITY BENEFITS ACT, 1961
1. Object and Application:
This is an Act passed with the object of regulating the of women in certain
establishments for certain periods before and after child birth and to provide for
maternity benefits. The Act applies to evert establishment being a factory, mine or
plantation including any such to Govt. This Act will not be applicable to a factory or
establishment covered by the ESI Act, 1948.
2. Prohibition against employment of Pregnant Women - Sec. 4
3. Maternity benefits - Sec.5, 7, 8, 9, 10 and 11.
4. Notice of claim of Maternity benefit - Sec. 6.
5. Powers and duties of Inspector. Sec.15, 16, 17.
UNIT - V
THE EMPLOYEE’S PROVIDENT FUNDS AND MISCELLANEOUS
PROVISIONS ACT, 1952
1. Scope, Coverage and Application of the Act
The Act is designed to provide some retirement benefits. The Act envisages the
institution of compulsory contributory provident fund in certain establishment
mentioned in Schedule I of the Act.
2. Employees’ Provident Fund Scheme. Sec.6
3. Employees Pension Scheme
Cases:
1. Delhi Cloth & General Mills Vs. Regional P. F. Commissioner. AI R 1961 All.
2. Mohammed Ali Vs. Union of India (1963) 1 LLJ.
3. Jay Engg. Works Vs. Union of India, AIR 1963 SC.
4. R.P.F. Commissioner Vs. Sri Krishna Metal Mfg. Co. AIR 1962 SC.
5. Ambalavana Chettiar & Co. Vs. R.P.F. Commissioner (19-69) MLJ.
6. Andhra University Vs. RPF Commissioner (1986) LLJ. SC.
UNIT - VI
THE PAYMENT OF BONUS ACT, 1965
1.Meaning and kinds of Bonus.
2.Scope and Application of the Act - Sec.1 .
3.The Scheme of the Act - It is four dimensional.
1) To impose statutory liability upon an employer of every establishment covered
by the Act to pay bonus to employees.
2) To provide for a formula for payment of bonus;
3) To provide for payment of minimum and maximum bonus and lining the
payment with the scheme of “set off” and “set-on”; and

34 LABOUR LAW - II
 4) To provide for a machinery for enforcement of the liability for payment of
bonus.
4. Payment of Bonus
a) Eligibility for bonus. Sec. 2(13) and 2(14).
b) Disqualification of an employee from receiving bonus Sec. 9.
c) Payment of minimum bonus and amount of bonus. Sec.1 o.
d) Computation of gross profit - SecA.
e) Sums deductable from gross profits - Sec.5.
f) Calculation of direct taxes payable by the Employer - Sec.7.
g) Calculation of bonus with respect to employees whose salary or wages
exceeds Rs.750 p.m. - Sec. 12.
h) Time for Payment of bonus.
5. Set-on and Set-off of allocable surplus. Sec.15.
6. Adjudication of disputes with respect to bonus payable under the Act. - Sec.22.
7. Mode of recovery of bonus due from an employer - Sec. 21.
8. Inspectors - Appointment - Powers and functions - Sec. 27.
Cases:
1. Mill Owners Association Vs. Rastriya Mill Mazdoor Sangh. ( 1952) LAC.
2. S. Krishnamurthy Vs. Presiding Officer, Labour Court. (1986) LLJ SC.
3. K.C.P.E. Association, Madras Vs. K.C.P. Ltd., AIR 1978 SC.
4. The workmen of Mis. Binny Ltd., Vs. The Mgt. of Binny Ltd., (1985) LLJ. SC.
5. K.M. Mani Vs. PJ. Antony. AIR 1979 SC:
6. Workmen of Kettlewell Buller & Co. Ltd., Vs. Ketttewell Buller & Co. Ltd. (1995)
LLJ. SC.

UNIT - VII
PAYMENT OF GRATUITY ACT, 1972

1. Meaning of Gratuity and application of the Act.

2. Payment of gratuity - Sec A.
3. Determination of gratuity. Sec.7.
Cases:
1. Rashtriya Mill Mazdoor Sangh Vs. National Textile Corporation (1998) 1 LLJ. SC.
2. D. K. Savitramma Vs. Ananpur Dist. Co-operative Central Bank & Another (1991)
LLJ AP.

35 LABOUR LAW - II
 UNIT - VIII
FACTORIES ACT, 1948
1. Definition of Factory Sec. 2(m);
manufacturing Process Sec. 2(K); and
Worker 2(1)
Cases:
a) In re K. Chockalingam. AIR 1954 Mad.
b) Hathras Municipality Vs. Union of India. AIR 1 S75 All.
c) Graner and Weil (India) Ltd. , Vs. Collector of Central Excise,
Baroda (1995) LLJ SC.
d) Rohtas Industries Vs. Ramlakhan Sing, AIR 1978 SC.
e) Shankar Balaji Vs. State of Maharashtra AIR 1962 SC.
2. Formalities to start a factory. Sec. 6 and 7.
3. Appointment of Inspector - Their powers and functions Sec. 8 and 9.
4. Provisions relating health, welfare and safety Sec.11 to 49.
5. Working Hours Sec. 51 to 65.
6. Employment of young persons and women - Sec. 67 to 75.
7. Annual Leave with wages - Sec. 78 to 84.

UNIT -IX
THE TAMILNADU SHOPS AND ESTABLISHMENTS ACT, 1947

Applicability - Persons covered by the Act, - Opening and closing hours, employment of
young persons - working hours public holiday, safety, cleanliness - leave, Annual leave with
wages.

36 LABOUR LAW - II