INTRODUCTION TO

IMPORTANT
LABOUR LAWS
THERE ARE 51 CENTRAL LABOUR LAWS

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 LAWS RELATED TO WORKING HOURS, CONDITIONS
OF SERVICE AND EMPLOYMENT

 FACTORIES ACT, 1948

 PLANTATION LABOUR ACT, 1951
 MINES ACT, 1952.
 WORKING JOURNALISTS AND OTHER NEWSPAPER EMPLOYEES’
(CONDITIONS OF SERVICE AND MISC. PROVISIONS) ACT, 1955.
 MERCHANT SHIPPING ACT, 1958.
 MOTOR TRANSPORT WORKERS ACT, 1961.
 BEEDI & CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966.
 CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970.
 SALES PROMOTION EMPLOYEES ACT, 1976.
 INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1979.
 DOCK WORKERS (SAFETY, HEALTH & WELFARE) ACT, 1986.
 BUILDING & OTHER CONSTRUCTION WORKERS (REGULATION OF
EMPLOYMENT & CONDITIONS OF SERVICE) ACT, 1996.
LAWS RELATED TO EQUALITY AND EMPOWERMENT

 MATERNITY BENEFIT ACT, 1961

 EQUAL REMUNERATION ACT, 1976
 LAWS RELATED TO DEPRIVED AND
DISADVANTAGED SECTIONS OF THE SOCIETY

 BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976

 CHILD LABOUR (PROHIBITION & REGULATION) ACT, 1986

 CHILDREN (PLEDGING OF LABOUR) ACT, 1933

 LAWS RELATED TO SOCIAL SECURITY

WORKMEN’S COMPENSATION ACT, 1923

EMPLOYEES’ STATE INSURANCE ACT, 1948

EMPLOYEES’ PROVIDENT FUND & MISCELLANEOUS PROVISIONS ACT,

1952

PAYMENT OF GRATUITY ACT, 1972

FACTORIES ACT 1948
 What the Act is all about?

Enactment of Stringent provisions!

 120 Sections
 11 Chapters
 03 Schedules

IF ESSENCE IS RIGHTLY APPRECIATED, & UNDERSTOOD THIS IS REALLY A

MASTER PIECE OF A SOCIAL LEGISLATION.
FACTORIES ACT, 1948

 A Comprehensive law for the persons working at a

specific domain – factories.
 Regarded as one of the Benevolent, Noble and a
Comprehensive Labour Legislation which is in
force in our country.
 Covers significant issues relating to the persons
employed in factories.
 Secures - Safety
Health
Welfare
FACTORIES ACT, 1948

 Ensures - Annual leaves with

wages
 Regulates - Working Hours
 Provides - Additional protection
from hazardous
processes
Additional protection
to women workmen
Prohibition of
employment of
children
FACTORIES ACT, 1948

Important indicators to be understood

1. Applicability
2. Beneficiaries
3. Responsible persons
4. Inspecting staff
APPLICABILITY
Applies to “Factories”

1. Definite Premises where 10 and more workers;

Manufacturing process, Power – Section 2m(i)
2. Definite Premises where 20 and more workers;
Manufacturing process; No power – Section 2m(ii)

3. Act empowers State Government to declare all or any of the

provisions of the Act to apply to any place with an
objective to secure safety, health and welfare or
workmen even though the workers strength is less
than the above cited conditions. – Section 85(i)
BENEFICIARIES (Target Group)

• Workers employed in the registered factories

“Worker” means a person employed, directly or by or through
any agency (including a contractor) with or without the
knowledge of the principal employer, whether for
remuneration or not in any manufacturing process or in any
kind of work incidental to, or connected with, the
manufacturing process
Workers under the Act, includes

1. Permanent 2. Temporary 3. Contract 4. Casual , 5. Clerical

staff 6. Managers, 7. Engineers, 8. Supervisors etc.,
“Apprentice” under the Apprentice Act, 1961 are not the workers.
However as per Section 14 of the Act – provision of health, safety &
welfare are applicable to the said category.
RESPONSIBLE PERSONS
OCCUPIER AND MANAGER are the responsible persons for
implementation of the provisions envisaged in the Act.
• OCCUPIER means the person who has got the ultimate control over the
affairs of the factory.
• Proprietorship - Proprietor
• Partnership - One of the partner
• Company - One of the director
• State or Central - Persons so nominated by the

Government owned respective governments.

1996 – SUPREME COURT CONFIRMED THIS. (1996 LLR 981 JK

Industries LTD., and others V/S CIFB and others etc.,
OCCUPIERS RESPONSIBILITY

• PREVIOUS PERMISSION TO LOCATE THE FACTORY,

• SHOULD OBTAIN LICENCE TO THE PREMISES,
• LICENSE IS REQUIRED TO BE RENEWED PERIODICALLY,
• OBLIGED TO COMPLY WITH THE APPLICABLE PROVISIONS OF THE
OUTLINED IN THE ACT AND RULES MADE THEREUNDER,
• MOST IMPORTANTLY HE/SHE IS REQUIRED TO ENSURE SHW
MANAGEMENT AT THE SITE WITHOUT ANY COMPROMISE,
• SHALL ENSURE, SO FAR AS IS REASONABLY PRACTICABLE, THE
HEALTH, SAETY AND WELFARE OF ALL WORKERS WHILE THEY ARE AT
WORK.
RESPONSIBLE PERSON[S]
MANAGER?
“ A PERSON RESPONSIBLE TO THE OCCUPIER FOR WORKING OF THE
FACTORY & FOR THE PURPOSES OF THE ACT”
• RULES PRESCRIBES SPECIFIC DUTIES - WHAT ARE THEY?
• Maintenance of registers, furnishing OT slips, leave cards
• Furnishing of returns
• Submission of notice to work on Sunday
• Intimation about the reportable accidents, dangerous
occurrences.

Change in Manager?
With in a week’s – Form no. 3A
INSPECTING STAFF - INSPECTORS
THE PERSONS VESTED WITH POWERS FOR ADMINISTRATION OF THE
APPLICABLE PROVISIONS OF LAW IN FACTORIES.

• Act empowers State Government to appoint persons as

Inspectors
• Qualification is defined
• Scope and limits are defined through Notifications.
• Act has prescribed the duties and powers of the Inspectors
GENERAL DOMAIN OF LAW
• APPROVAL AND LICENCING TO THE PREMISES

• HEALTH INITIATIVES

• WELFARE SCHEMES

• SAFETY MANAGEMENT

• STATUTORY DISPLAYS

• STATUTORY COMMITTEES

• STATUTORY REGISTERS

• STATUTORY RETURNS

• REGULATION OF WORKING HOURS OF ADULTS

• ANNUAL LEAVE WITH WAGES contd.,

FOCUSSED AREAS

• REPORTING OF ACCIDENTS

• REPORTING OF DANGEROUS OCCURRENCE

• REPORTING OF NOTIFIABLE DISEASES

• PROVISIONS RELATING TO WOMEN WORKERS

• PROVISION RELATING TO CHILD

• PROVISIONS RELATING TO NO. OF EMPLOYEES

• TRAINING & EDUCATION PROGRAMMES

• OBTAINING OF EXEMPTION SCHEMES

• PENALTY AND PROCEDURES

APPROVAL/LICENCING

• APPROVAL OF PLANS
• REGISTRATION AND RENEWAL OF FACTORY LICENCE
• AMENDMENT & TRANSFER IN THE LICENCE
APPROVAL/LICENCING
APPROVAL IS REQUIRED IN RESPECT OF THE FOLLOWING:

• PROPOSED CONSTRUCTION
• EXTENTION TO EXISTING FACTORY BUILDING
• FOR INSTALLATION OF MACHINAIRES – CHANGE IN LAYOUT OF
MACHINES
• RESITING OF MACHINES
• APPLICATION SHALL BE MADE BEFORE MAKING ANY CHANGES
• THE DOCUMENTS REQUIRED TO BE SUBMITTED IS CLEARLY DEFINED.
• NO CHANGES SHALL BE MADE WITHOUT THE PREVIOUS PERMISSION
• IF THE APPLICATION IS MADE SEEKING APPROVAL AND NO
COMMUNICATION IS RECEIVED WITHIN THREE MONTHS FROM THE DATE
OF SUBMISSION, PERMISSION APPLIED IN THE APPLICATION SHALL BE
DEEMED TO BE GRANTED.
LICENCING
REGISTRATION AND GRANT OF FACTORY LICENCE

• BEFORE STARTING THE FACTORY, THE APPLICATION SHALL BE

SUBMITTED TO THE OFFICE OF THE JURISDICTIONAL OFFICER - BEFORE
15 DAYS.
• THE DOCUMENTS REQUIRED TO BE SUBMITTED IS CLEARLY DEFINED.
• LICENCE WILL BE GRANTED IN FORM 3.
• IF THE APPLICATION IS MADE SEEKING REGISRATION AND NO
COMMUNICATION IS RECEIVED WITHIN THREE MONTHS FROM THE DATE
OF SUBMISSION, REGISTRATION SHALL BE DEEMED TO BE GRANTED.
• LICENCE IS REQUIRED TO BE RENEWED EVERY YEAR. OPTION HAS BEEN
GIVEN TO RENEW THE LICENCE FOR PERIOD NOT EXCEEDING THREE
YEARS.
LICENCING
WHAT IS AMENDMENT/TRANSFER

• THREE LIMITS ARE MENTIONED IN THE LICENCE.

• IF THERE IS ANY CHANGE IN THE LIMITS SPECIFIED IN THE LICENCE
AND CHANGE IN THE NAME OF THE FACTORY, QUESTION OF
AMENDMENT ARISES.
• THE DOCUMENTS REQUIRED TO BE SUBMITTED IS CLEARLY DEFINED.
• APPLICATION FOR AMENDMENT SEEKING INCREASE IN THE LIMITS
SPECIFIED I.E., NO. OF WORKERS, HORSE POWER, KILOWATT SHALL BE
MADE 15 DAYS PRIOR TO THE INCREASE THE LIMITS.
• DUPLICATE LICENCE CAN BE OBTAINED IF THE LICENCE GRANTED
UNDER RULE IS LOST OR ACCIDENTALY DESTROYED BY PAYING THE
FESS OF RS.250/- ALONG WITH AN APPLICATION IN T HIS BEHALF
• IF THERE IS CHANGE IN THE OCCUPIER, LICENCEE SHOULD APPLY FOR
PERMISSION TO TRANSFER HIS LICENCE TO ANOTHER PERSON.
HEALTH FRONT

• HOUSE KEEPING/CLEANLINESS
• OVERCROWDING
• LIGHTING
• DRINKING WATER
• LATRINE AND URINALS
• SPITTONS
SAFETY
GENERAL SAFETY MANAGEMENT INCLUDES

• EQUIPMENT SAFETY,
• PERSONAL SAFETY
• MATERIAL SAFETY
• PROCESS SAFETY
• PERSONAL PROTECTIVE EQUIPMENT
• EXCESSIVE WEIGHTS
WELFARE ISSUES
MAIN INSIGHT OF THIS CHAPTER IS TO ENSURE WELL BEING OF THE PERSONS.

• Washing facilities
• Facilities for sitting
• First aid appliances
• Crèche
• Canteen
• Rest room, shelters, lunch room
• First aid trained personnel
• Ambulance room
STATUTORY APPOINTMENTS/RECOGNITION

• SAFETY OFFICER
• WELFARE OFFICER
• MEDICAL OFFICER
• COMPETENT & QUALIFIED SUPERVISORS
• COMPETENT PERSON
• ACCREDITION AGENCIES TO CONDUCT SAFETY AUDITS.
EXEMPTION PROVISIONS
ª TO WORK ON SUNDAY
ª TO CARRYOUT EXCEPTIONAL PRESSURE OF WORK
ª TO MAINTAIN CRECHE
ª TO EMPLOY WOMEN WORKERS UP TO 10PM
ª TO INCREASE THE SPREADOVER TIME IN A SHIFT
ª LEAVE RULES
ª EXEMPTION IN CASE OF OVER CROWDING
ª EXEMPTION OF WORKSHOP OR WORK PLACES
ATTACHED TO
INSTITUTION MAINTIANED FOR THE
PURPOSE OF TRAINING,
EDUCATION OR REFORMATION
ª MOTOR VEHICLE SPEED INSIDE THE PREMISES
FORMATION AND PARTICIPATION IN COMMITTEES

ª SAFETY COMMITTEE
ª CANTEEN MANAGEMENT COMMITTEE
ª WORKS COMMITTEE
ª SEXURAL HARASSEMENT PREVENTION COMMITTEE
WORKING HOURS FOR ADULTS
Act regulates the working hours for adult workers employed
in the factories
• Weekly hours / Daily hours;
• Weekly holidays
• Interval for rest
• Extra wages for overtime
• Spread over – 10½ hours – 12 hours
• Restriction of double employment
• Notice of periods of work – contrary is not allowed
• Power to make exempting orders
• Restriction on employment of women
ANNUAL LEAVE WITH WAGES
One day for every twenty days
Eligibility :
• 240 days in a calendar year – his/her service is from
beginning of the calendar year;
• 2/3rd of the calendar year – his/her service begins in
the middle of calendar year
• Issue of leave books in Form no. 15
• Leave with wages register in Form no. 14
• Any discharge / dismissal – benefit shall be settled
immediately.
PROVISIONS IN THE ACT, CORRESPONDING TO
STRENGTH OF THE WORKERS
• Crèche - > 30 women workers
• Restroom / shelters and lunch room - > 150 workmen
• Cooled drinking water - > 250 workers
• Canteen - > 250 workers
• Ambulance room – Doctor, Nurse and Dresser cum
compounder - > 500 workers
• Welfare officer - > 500 workers
• Lady welfare officer - > more nos. of women workers
• Safety officer - > 1000 workers
• Occupational health centre – Industries involving in
hazardous process
FACTORIES ACT – WOMEN WORKERS
SALIENT FEATURES

• Prohibits the employment of women from 7 pm to 6

am.
• Prohibits overtime work
• Act permits the Government to notify the factories to
employ women workers up to 10pm with
conditions
• Government has notified 15 categories of factories
under 2 notifications;
• One in one notification
FACTORIES ACT – WOMEN WORKERS
• The conditions under which the exemptions is granted are
• Written consent from the employee
• Free transport up to their residence
• 9 hours of rest after completion of work to the fresh
period of work in the following day
• No overtime work
Act bars employment of women workers from 10 pm to
5 am totally.
• Act bars employment of women to clean, lubricate
any part of the equipment
• Act bars employment of women workers in
hazardous processes
FACTORIES ACT – CHILD LABOUR
Bars the employment of persons below the age of 14

• Act permits the employment of child and adolescent to work

in factories subject to condition of obtaining certificate
of fitness from the certifying surgeon.
Child – more than 14 and less 15;
Adolescent – more than 15 and less than 18
• Working hour for child is four and half hour per day
• Double employment of child is prohibited
• Working hours for adolescent is as that of adult.

• Act bars employment of child and young persons on

dangerous machines – power press, hydraulic, presses,
milling machine, guillotine machine
• Act bars employment of child and adolescent on dangerous
manufacturing processes
DISPLAY OF NOTICES

• Notice of periods of work

• An abstract of the act and rules
• Cautionary notices
• Safety posters, catchy safety slogans
• Name and address of the Inspector
• Name of the Medical Officer
DISPLAY OF NOTICES

• ALL THE NOTICES TO BE DISPLAYED IN FACTORIES

SHALL BE IN ENGLISH AND IN A LANGUAGE
UNDERSTOOD BY THE MAJORITY OF THE
WORKERS. - S.108

• NOTICES SHALL BE DISPLAYED AT CONSPICUOUS

PLACE AND SHALL BE MAINTAINED IN CLEAN AND
LEGIBLE CONDITIONS. - 108
RETURNS/NOTICES TO BE SUBMITTED

• Combined Annual return - Form no. 20 ( on or before 1 st

Feb)
• Annual return under PWA – Form no. IV ( on or before 15 th
Feb)
• Half yearly return - Form no. 21 ( on or before 15th July)
• Accident return - Form no. 17 ( for reporting of fatal and
reportable accident)
• Form no. 23 ( on or before 5th of subsequent month)
• Intention to work on Sunday
ACCIDENT, DANGEROUS OCCURRENCES AND
DISEASES
Fatal
Accidents
Non fatal
• Reportable accidents shall be reported in Form no. 17,
within 72 hours from the from the time of occurrence
of accidents.
• Fatal accident shall be reported within in 12 hours
• Fatal Accidents are Required to be reported to:
• Inspector,
• District Magistrate or Sub Divisional Magistrate,
• Officer in charge of the nearest police station
• Relatives of the injured or deceased person
ACCIDENT, DANGEROUS OCCURRENCES AND
DISEASES
• ACCIDENT IS REQUIRED TO BE INVESTIGATED TO FIND OUT THE
CAUSES
• IF ANY VIOLATIONS ARE NOTICED, IT WILL END UP WITH
PROSECUTIONS
• CAN POLICE AUTHORITY FILE LEGAL CASE IN CASE OF A
FATAL ACCIDENT IN SIDE THE PREMISES OF THE FACTORY?
• PROSECUTION LAUNCHED UNDER SECTION 92 AND 95 OF
THE FACTORIES ACT BY THE FACTORY INSPECTOR
PERTAINING TO AN OCCURRENCE A FATAL ACCIDENT WITHIN
THE FACTORY REMISES WILL DEBAR THE PROCEEDINGS
UNDER SECTION 342 OF THE CRIMINAL PROCEDURE CODE.
• RULING - 2007 LLR 866 - JHARKHAND HIGH COURT - IN
CRIMINAL M.P NO. 386 OF 2006 DATED 2ND DECEMBER 2006
HAZARDOUS PROCESSES AND
DANGEROUS OPERATIONS

• 26 operations or processes have been identified as

dangerous
•COMPREHENSIVE RULES IN RESPECT OF EACH OPERATIONS
OR PROCESSES HAVE BEEN FRAMED AND PUBLISHED
INDUSTRIES INVOLVNG HAZARDOUS
PROCESSES

• 29 industries have been listed as industries involving

hazardous processes have been listed at the

THE FIRST SCHEDULE

(See Section 2 (cb)
DANGEROUS OCCURRENCES
(which does not result in death or bodily injury)

• Bursting of plant or vessel working under pressure

• Collapse of lifting equipment
• Explosion or fire causing damage
• Collapse of floor, gallery, roof, etc.

The Said incidents also shall be reported in Form no. 17A

WITH IN 12 HOURS FROM THE INCIDENT.
These incidents also requires to be investigated to unearth
the causes
NOTICE OF POISONING OR DISEASE

A NOTICE OF POISONING OR DISEASE SHALL BE FURNISHED IN FORM

NO. 18 BY THE MANAGER,
AUTHORITIEES TO WHOM THE FORM IS REQUIRED TO BE FURNISHED
• CHIEF INSPECTOR
• CERTIFYING SURGEON
• ADMINISTRATIVE MEDICAL OFFICER OF ESI
WHEN ?
FORTHWITH!
3 SCHEDULES

TOTALLY 3 SCHEDULES ARE APPENDED TO THE ACT

DETAILING

1. INDUSTRIES INVOLVING HAZARDOUS PROCESSES;

2. PERMISSIBLE LEVELS OF CERTAIN CHEMICAL SUBSTANCES
AT THE WORK ENVIRONMENT
3. LIST OF NOTIFIABLE DISEASES.
 GENERAL INFORMATION

• OCCUPIER AND MANAGER CARRIES VICARIOUS LIABILITY.

• THERE IS A PROVISION FOR EXEMPTION OF OCCUPIER OR MANAGER
FROM LIABILITY IN CERTAIN CASES.(SEC:101)
• THE DIRECTOR MAY UNDERTAKE SAFETY AND OCCUPATIONAL HEALTH
SURVEYS IN FACTORIES IF IT IS FOUND NECESSARY – OCCUPIER AND
MANAGER SHALL AFFORD ALL FACILTIES FOR SUCH SURVEY.
• THE GOVERNMENT MAY APPOINT A COMPETETNT PERSON TO
INQUIRE INTO THE CAUES OF ANY ACCIDENT OCCURING IN A FACTORY
OR INTO ANY CASE WHERE DISEASE SPECIFIED THE SCHEDULE HAVE
BEEN CONTRCTED.
• INSPECTOR IS HAVING THE POWER TO TAKE SAMPLES
• THE INSPECTOR IS HAVING POWER TO PROIBIT EMPLOYMENT ON
ACCOUNT OF SERIOUS HAZARD.
GENERAL INFORMATION

• THERE IS A PROVISION FOR AMALGAMATION OF TWO DIFFERENT

DEPARTMENTS TO BE SEPARATE FACTORY OR TWO OR MORE
FACTORIES TO BE A SINGLE - SECTION 4
• THE DESPATCH BY POST UNDER RPAD DUE OF ANY NOTICE OR
ORDER SHALL BE DEEMED SUFFICIENT SERVICE ON THE OCCUPIER
& MANAGER – RULE 135 OF KFR 1969
• THERE IS APPEAL PROVISION UNDER THE LAW AGAINST ANY ORDER
SERVED BY THE INSPECTOR BEFORE THE CHIEF INSPECTOR WITHIN
30 DAYS – SECTION 107
• INSPECTOR CAN ASK FOR ANY INFORMATION FOR THE PURPOSE OF
SATISFYING HIMSELF WITH THE COMPLIANCE TO THE PROVISIONS
– RULE 136.
• THE OCCUPIER AND MANAGER SHOULD SUPPLEMENT THE SAME
WITHIN SEVEN DAYS
GENERAL INFORMATION

• IN CASE OF DEATH OF ANY PERSON ON SERVICE THE BALANCE OF

PAY DUE FOR THE PERIOD OF LEAVE WAGES NOT AVAILED OF
SHALL BE PAID TO HIS NOMINEE WITHIN A WEEK OF THE
INTIMATION OF DEATH – RULE 126

• TO DO THIS NOMINATION SHALL BE OBTAINED IN FORM NO.25

APPENDED TO THE RULES.

• AS FAR AS THE CIRCUMSTANCES PERMIT, MEMBERS OF THE SAME

FAMILY, HUSBAND AND WIFE SHALL BE ALLOWED ANNUAL LEAVE
WITH WAGES ON THE SAME DATE – RULE125

• NO CHARGE FOR FACILITIES OR CONVENIENCES PROVIDED EXCEPT

UNDER SECTION 46 – SECTION 114
PENALTY FOR ANY VIOLATIONS
OFFENCE PENALTIES

· For contravention of the Provisions of · Imprisonment upto 2 years or fine upto

the Act or Rules Rs.1,00,000 or both

· On Continuation of contravention · Rs.1000 per day

· On contravention of Chapter IV · Not less than Rs.25000 in case of death.

pertaining to safety or dangerous · Not less than Rs.5000 in case of serious
operations. injuries.

· Imprisonment upto 3 years or fine not

· Subsequent contravention of some less than Rs.10, 000 which may extend to
provisions Rs.2, 00,000.

· Obstructing Inspectors · Imprisonment upto 6 months or fine

upto Rs.10, 000 or both.

· Wrongful disclosing result pertaining to · Imprisonment upto 6 months or fine

results of analysis. upto Rs.10, 000 or both.

· For contravention of the provisions of · Imprisonment upto 7 years with fine

Sec.41B, 41C and 41H pertaining to upto Rs.2, 00,000 and on continuation fine
compulsory disclosure of information by @ Rs.5, 000 per day.
occupier, specific responsibility of occupier Imprisonment of 10 years when
or right of workers to work imminent contravention continues for one year.
danger.
VIEWS OF THE APEX COURT OF THE
COUNTRY ABOUT THE LEGISLATION
FACTORIES ACT, 1948

VIEWS OF THE APEX COURT OF THE COUNTRY

• Primary object of the Act is to protect the workers employed in the

factories against industrial and occupational hazards ( Bhikusa Vamsa
Kshatria V/s Union India, AIR 1963 SC 779)
• Object of the Act is to secure health, safety, welfare, proper working
hours, leave and other benefits for the workers employed in factories
(AIR 1967 SC 1364)
• Factories Act is a social enactment to achieve social reform and it must
receive liberal construction to achieve legislative purpose without doing
violence to the language (Central Railway Workshop, Jhansi V/s
Vishwanath AIR 1970 SC 488)
• Provision of the Act must be given liberal construction (Alembic
Chemical Works Co. Ltd V/s AIR 1961 SC 647.
INDUSTRIAL DISPUTES ACT 1947
 SALIENT FEATURES

 Applies to “Industry”
 Provides for resolution of “Industrial Dispute”
 Regulates “Strikes” and “Lock-outs”
 Regulates change in Service Conditions
 Regulates
 Lay off Retrenchment
 Transfer Closure
 Provides penalty for Unfair Labour Practices and for
violation of provisions.
 WHAT AMOUNTS TO
INDUSTRIAL DISPUTE
INGREDIENTS OF AN INDUSTRIAL DISPUTE [Sn.2(k)] :
i) DISPUTE MUST BE IN AN ESTABLISHMENT SATISFYING THE DEFINITION OF
'INDUSTRY' IN SECTIONS 2(ka) & 2 (j).
ii) DISPUTE MUST BE BETWEEN :
- EMPLOYER Vs EMPLOYER
- EMPLOYER Vs WORKMEN
- WORKMEN Vs WORKMEN

iii) THE SUBJECT MATTER OF THE DISPUTE MUST BE :

- CONNECTED WITH EMPLOYMENT OR NON-EMPLOYMENT
- CONNECTED WITH TERMS OF EMPLOYMENT
- CONNECTED WITH CONDITIONS OF LABOUR

IV) OF 'ANY PERSON' - PROVIDED THAT PERSON HAS A NEXUS WITH THE INDUSTRY

V) DISPUTE MUST BE RAISED BY WORKMEN : BY UNION, OR A GROUP OF WORKMEN.

INDUSTRIAL DISPUTE CAN BE RAISED ONLY BY EMPLOYEES SATISFYING

THE DEFINITION OF 'WORKMAN' IN SECTION 2(s).
 KEY QUESTIONS

I. WHAT IS AN INDUSTRY?
II. WHO IS A WORKMAN?
III.WHAT IS MEANT BY APPROPRIATE GOVERNMENT?
IV. CAN ONLY A MAJORITY OF WORKMEN IN AN
INDUSTRY RAISE A DISPUTE ?

V. WHEN CAN AN INDIVIDUAL WORKMEN RAISE A

DISPUTE (i.e. EVEN WITHOUT THE SUPPORT OF
OTHER WORKMEN) ?
VI. CAN WORKMEN RAISE AN INDUSTRIAL DISPUTE
PERTAINING TO NON-WORKMEN ?
RESOLUTION OF DISPUTES
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 CONCILIATION

CONCILIATION BY AN OFFICER AND A BOARD (AN

AD-HOC BOARDCONSISTING OF AN INDEPENDENT
CHAIRMAN AND EQUAL NUMBER OF
WORKMEN AND EMPLOYER REPRESENTATIVES)
IF DECISION IS REACHED, THE SETTLEMENT IS
SIGNED IN FORM-H
FAILURE REPORT TO BE FORWARDED TO THE
GOVERNMENT, IF SETTLEMENT IS NOT REACHED.
BEFORE SENDING THE FAILURE REPORT HE
SHOULD ASK THE DISPUTING PARTIES WHETHER
THEY WOULD LIKE THE DISPUTE TO BE SENT FOR
ARBITRATION
 ADJUDICATION
ADJUDICATION IS A JUDICIAL (DECISION MAKING)
PROCESS FOR SETTLEMENT OF INDUSTRIAL
DISPUTES
THE ADJUDICATING BODIES UNDER THE ID ACT
•LABOUR COURTS
•TRIBUNALS
•NATIONAL TRIBUNALS
WHEN DOES ADJUDICATION COMMENCE AND WHEN
DOES IT END ?
FOR WHAT DURATION IS THE ADJUDICATION AWARD
VALID
ON WHOM ARE THE AWARDS BINDING ?
PROCEDURE FOR ENFORCING ADJUDICATION
AWARDS
 ARBITRATION

 IT IS A DISPUTE RESOLVING PROCESS THROUGH AN UMPIRE SELECTED

BY THE DISPUTING PARTIES.

 TYPES OF ARBITRATION

 HOW IS ARBITRATION PROCESS INITIATED

 AWARDS OF ARBITRATORS
 PROVISIONS FOR ALTERATION OF SERVICE CONDITIONS
/ ISSUE OF 'NOTICE OF CHANGE'

i) CAN AN EMPLOYER UNILATERALLY ALTER THE CONDITIONS OF

SERVICE APPLICABLE TO WORKMEN ?
ON ANY 11 ITEMS LISTED IN SCHEDULE IV OF THE ID ACT, HE
CANNOT ALTER, UNLESS HE GIVES A NOTICE OF CHANGE AS
CONTEMPLATED IN SECTION 9A OF THE ACT.
ii) WHAT KIND OF NOTICE MUST BE GIVEN ?
AS PER Sn.9A(b) HE SHOULD GIVE AT LEAST 21 DAYS ADVANCE
NOTICE. IF THE CHANGE IS MADE AS A RESULT OF AN
AGREEMENT, NO NOTICE IS REQUIRED .
Iii) EFFECT OF GIVING NOTICE
IF WORKMEN/UNIONS DO NOT OBJECT TO THE CHANGE, THE
CHANGE CAN BE EFFECTED AFTER 21 DAYS [Sn.9A(1)]. IF
WORKMEN OPPOSE THE CHANGE, THE ISSUE WILL BE TAKEN UP
IN CONCILIATION AND THE EMPLOYER WILL HAVE TO AWAIT
THE OUTCOME OF THE CONCILIATION MEETING/
ADJUDICATION PROCESS [Sn.33(1)].
 PUBLIC UTILITY SERVICE & ITS SIGNIFICANCE

a) UNDER SECTION 2(n) OF THE ID ACT 1947

CERTAIN CATEGORY OF INDUSTRIES HAVE
BEEN DECLARED AS PUBLIC UTILITY SERVICES.
b) AS PER SECTIONS 22 TO 24 MORE STRINGENT
PROVISONS HAVE BEEN PRESCRIBED FOR
DECLARING LOCK OUTS (BY EMPLOYERS)
OR FOR ORGANISING STRIKES (BY WORKMEN)
IN SUCH INDUSTRIES.
SECTION 2(n) DECLARES CERTAIN TYPES OF
INDUSTRIES TO BE PERMANENTLY PUBLIC UTILITY
SERVICES AND SOME OTHERS WHICH COULD BE
DELCARED AS PUBLIC UTILITIES FOR TEMPORARY
PERIODS OF SIX MONTHS AT A TIME.
 STRIKE & LOCKOUTS

STRIKE [2(q)] BY WORKMEN

REFUSAL TO WORK OR ACCEPT EMPLOYMENT BY A BODY OF
PERSONS IN 'INDUSTRY' [2(j)] IF UNDER A COMMON
UNDERSTANDING OR ACTING IN CONCERT
LOCKOUT [2(l)] BY EMPLOYER
TEMPORARY CLOSING OF PLACE OF EMPLOYMENT, OR
REFUSAL TO CONTINUE TO EMPLOY PERSONS EMPLOYED BY
AN EMPLOYER

IS NOTICE OF STRIKE/LOCKOUT MANDATORY

IF INDUSTRY FALLS UNDER DEFINITION OF 'PUBLIC UTILITY
SERVICE' AS PER SECTION 2(n), SCH-I OR IF THE TERMS OF
EMPLOYMENT (APPOINTMENT LETTER) OR STANDING
ORDER REQUIRES GIVING OF NOTICE.
 WHEN WOULD STRIKES OR
LOCKOUTS BE ILLEGAL
IN 'PUBLIC UTILITY SERVICE' [22(1)& (2), 23, 30, 19] WHEN STRIKE /
LOCKOUT IS COMMENCED :
a) WITHOUT GIVING ATLEST 14 DAYS NOTICE
b) COMMENCED AFTER 42 DAYS OF NOTICE
c) PRIOR TO DATE INDICATED IN THE NOTICE
d) DURING PENDENCY OF PROCEEDINGS BEFORE
CONCILIATION OFFICER/BOARD AND SEVEN DAYS
THEREAFTER
e) DURING PENDENCY OF PROCEEDINGS BEFORE LABOUR
COURT / TRIBUNAL / ARBITRATORS AND TWO MONTHS
THEREAFTER
f) DURING THE PERIOD WHEN A SETTLEMENT OR AWARD IS IN
OPERATION ON MATTERS COVERED
NOTE : A STRIKE/LOCK OUT LEGALLY COMMENCED WOULD
BECOME ILLEGAL IF CONTINUED AFTER GOVERNMENT BANS IT
UNDER SECTION 10(4A) AND 24
MANNER OF GIVING STRIKE/LOCKOUT NOTICE
STRIKE [22(4)]

NOTICE SHALL BE GIVEN IN FORM-L.

LOCKOUT [22(5)].

NOTICE SHALL BE GIVEN IN FORM-M

DUTY OF EMPLOYER ON RECEIVING / GIVING NOTICE

ON RECEIVING STRIKE NOTICE / OR GIVING LOCKOUT
NOTICE. [RULES 71, 72, 73, 74 AND Sn.22(3), 22(6)]. SHOULD
INFORM THE APPROPRIATE GOVERNMENT WITHIN FIVE DAYS
OF RECEIPT OF NOTICE [22(6)] AND ALSO FORTHWITH INFORM
THE CONCILIATION OFFICER [RULE-71(2)]. LOCKOUT NOTICE
MUST BE DISPLAYED ON NOTICE BOARD AT THE ENTRANCE
[RULE-72]. A REPORT ON STRIKE / LOCKOUT SHOLD BE SENT IN
FORM-N AS PER SECTION 22(3), RULES 73, 74.
CONSEQUENCES OF ILLEGAL STRIKES / LOCKOUTS

ON WORKMEN
- ALL WORKMEN NO WAGES
- INSTIGATORS COULD BE PUNISHED/IMPRISONED
UNDER SECTIONS 26, 27, 28.
ON EMPLOYER
- WILL HAVE TO PAY WAGES AND CAN BE
PUNISHED/IMPRISONED UNDER SECTIONS 26, 27,
28.
 LAY OFF'
AS PER SECTION 2(kkk)
LAY OFF IS THE INABILITY / FAILURE / REFUSAL OF THE
EMPLOYER TO GIVE EMPLOYMENT TO WORKMEN ON HIS
MUSTER ROLLS (EXCLUDES BADLIS AND CASUALS) ON
ACCOUNT OF :
SHORTAGE OF COAL / POWER / RAW MATERIALS
ACCUMULATION OF STOCKS
BREAKDOWN OF MACHINERY
 NATURAL CALAMITY (LIKE FLOODS
EARTHQUAKE /FIRE / LIGHTNING, ETC) OR ANY
OTHER CONNECTED REASON
PRIOR PERMISSION > 100 WORKMEN
LAYOFF COMPENSATION: PAYMENT OF WAGES EXCEPT FOR
INTERVENING WEEKLY HOLIDAY COMPENSATION @50% OF
TOTAL OR BASIC WAGES AND DA FOR A PERIOD OF LAY OFF
UPTO MAXIMUM 45 DAYS IN A YEAR
 RETRENCHMENT OF WORKMEN

RETRENCHMENT [DEFINITION SECTION 2(00)] ?

AS PER SECTION 2(00) ALL TYPES OF TERMINATION OF A

WORKMAN BY AN EMPLOYER WOULD BE RETRENCHMENT,
UNLESS IT IS A TERMINATION BY WAY OF DISCIPLINARY ACTION
OR IT FALLS UNDER ANY ONE OF THE FOLLOWING FOUR
EXCEPTIONS :

-VOLUNTARY RETIREMENT
-RETIREMENT ON REACHING THE AGE OF SUPERANNUATION (IF
THERE IS A STIPULATION IN THE CONTRACT OF EMPLOYMENT)
-TERMINATION RESULTING OUT OF NON-RENEWAL OF A FIXED
TERM CONTRACT EMPLOYMENT.
-TERMINATION ON ACCOUNT OF CONTINUED ILL- HEALTH.
COMPENSATION & CONDITIONS - RETRENCHMENT

WORKMEN MUST HAVE WORKED FOR 240 DAYS

COMPENSATION AT 15 DAYS OS WAGES FOR
EVERYCOMPLETED YEAR
ONE MONTHS NOTICE OR WAGES IN LIEU
THEREOF
REASONS FOR RETRENCHMENT
LAST COME FIRST GO PRINCIPLE
PRIOR PERMISSION IF >100
CLOSURE OF AN UNDERTAKING
 60 DAYS NOTICE TO THE LABOUR AUTHORITIES
 PRIOR PERMISSION ATLEAST 90 DAYS BY THE
GOVERNMENT IF MORE THAN 100 EMPLOYED
DURING LAST 12 MONTHS
 UNFAIR LABOUR PRACTICES
SECTION 25 T OF THE ID ACT PROHIBITS
EMPLOYERS/WORKMEN/UNIONS INDULGING IN ACTS
LISTED AS UNFAIR LABOUR PRACTICES UNDER
SCHEDULE-V.
 SIGNIFICANCE OF SECTION 33 OF THE I.D.ACT
1947
I SIGNIFICAN - IT PLACES MAKE CHANGES IN SERVICE
CE OF CERTAIN CONDITONS OF WORKMEN
SECTION 33 TEMPORARY
RESTRICTIONS TO AWARD PUNISHMENT OF
ON EMPLOYERS DISMISSAL/DISCHARGE ON ANY
RIGHT TO: WORKMAN

TO IMPOSE ANY KIND OF

PUNISHMENT ON UNION OFFICE
BEARERS TREATED AS
‘PROTECTED WORKMEN’

II ARE THESE - NO. [THERE

RESTRICTIO ARE NO
NS ALWAYS RESTRICTIONS
APPLICABLE IF NO
? PROCEEDING IS
PENDING [Sn
33(1)]
III THEN WHEN - IT APPLIES ONLY - CONCILIATION
ARE THEY DURING ‘THE - ADJUDICATION
APPLICABLE ? PERIOD OF - ARBITRATION
PENDENCY OF
[Sn 33(1)]
ANY ONE OF THE
FOLLOWING
PROCEEDINGS:
IV WHAT IS - CONCILIATION IS DEEMED TO COMMENCE
MEANT BY AND CONCLUDE WHEN CONTINGENCIES
‘PERIOD OF MENTIONED IN SECTION 20(1) 20(2) ARE
PENDENCY’ ? SATISFIED
-
SIMILARLY ‘ADJUDICATION’ & ‘ARBITRATION’
ARE DEEMED TO COMMENCE & CONCLUDE
WHEN CONTINGENCIES MENTIONED IN
SECTION 20(3) IS SATISFIED.

Note: THE INTERVENING PERIOD IS CALLED

THE PERIOD OF PENDENCY
V WHAT IS THE NATURE OF RESTRICTIONS IMPOSED
CONTINGENCY TAKE PRIOR TAKE POST FACTO
WRITTEN APPROVAL
PERMISSION
ALTERATION OF SERVICE CONDITIONS
A WHEN EMPLOYER ACTION ONLY
WANTS TO ALTER A AFTER GETTING
MATTER/ SERVICE PRIOR WRITTEN
CONDITION WHICH IS PERMISSION NA
THE SUBJECT MATTER FROM AUTHORITY
OF THE DISPUTE

B WHEN SERVICE NO PERMISSION OR

CONDITIONS / ANY APPROVAL IS
OTHER MATTER NOT NA REQUIRED IF THE
CONNECTED WITH THE ACTION IS AS PER
PENDING DISPUTE ARE APPLICABLE STANDING
TO BE ALTERED IN CASE ORDER PROVISIONS OR
OF PERSONS PREVAILING SERVICE
CONCERNED IN THE RULES.
DISPUTE [Sn 33(2)(a)]
 PROTECTED WORKMEN

PUNISHING ANY KIND OF IF NOT A

‘PROTECTED PUNISHMENT TO ‘PROTECTED
WORKMEN’ ‘PROTECTED WORKMAN’ FILE
[Sn 33(3), R-62] WORKMEN’ MUST APPROVAL
BE GIVEN ONLY PETITION (ONLY
AFTER APPLYING FOR TERMINATION
AND GETTING CASES)
WRITTEN
PERMISSION
V WHERE TO FILE PERMISSION OR APPROVAL
I APPROVAL APPLICATIONS TO BE FILED BEFORE
/PERMISSION THE DISPUTE PENDING AUTHORITY
APPLICATIONS
IF DISPUTE PENDING BEFORE MORE
THAN ONE AUTHROTITY – EMPLOYER
CAN CHOOSE ANY ONE OF THEM
CONTRACT LABOUR (REGULATION AND
ABOLITION ACT) 1970
 OBJECTIVE

 Regulates the employment of contract labour

in certain establishments and to provide for
its abolition in certain circumstances and for
matters connected therewith.
 THE APPLICABILITY

To every establishment in which 20 or more workmen are

employed or were employed on any day of the preceding 12
months as contract labour
To every contractor who employees or who employed on any day
of the preceding 12 months 20 or more workmen

THE NON APPLICABILITY

The act is not applicable in an Estb. in which work only of an
intermittent or casual nature is performed
Establishment includes any office or department of Govt.
WHEN NOT INTERMITTENT
if performed for more than 120 days in the preceding 12
months, or if seasonal character and is performed for more than
60 in a year
 IMPORTANT DEFINITIONS

Principal Employer includes

-The Hd. of office for any office/dept. of the Govt./ local
Authority
-Factory – Factory Manager
-Mines – Owner/Agent/Manager
-Any other establishment

Appropriate Govt - Central or State

Controlled Industry - Control by Union for Public interest

CONT…..
Contract labour - Person hired for work of an Estb. through a
contractor, with or without the knowledge of the principal
employer

Contractor - a person who undertakes to produce a given result

for the establishment, (other than a mere supply of goods)
through contract labour or who supplies contract labour for any
work of the Estb.
OBTAINING REGISTRATION & LICENSE

 Prinicipal Employer engaging 20 or more workers through

the contractor or contractors needs to register its
establishment on deposit of required fee in Form-1.

 Any contractor engaging 20 or more workers needs to

procure a license to operate on deposit of required fee in
Form-IV.
 For license form V is given by Principal employer to
contractor
 OBLIGATION OF PRINCIPAL EMPLOYER

Register of contractors Form XII

Annual return Form XXV (on or before 15th Feb-
consolidated return)
Notice of Commencement/ Form VI B
Completion
OBLIGATION OF CONTRACTOR

Renewal of license Form VII

Register of workman Form XIII
Employment Card Form XIV
Service Certificate Form XV
Muster Roll Form XVI
Wages register Form XVII
Wage slip Form XIX
Deduction for damage/loss Form XX
Register of fines Form XXI
Register of advances Form XXII
Register of over-time Form XXIII
Half yearly return Form XXIV
Notice of Commencement Form VI A /Completion

Cont……..
Welfare Facilities

 Canteen Section 16
 Rest rooms Section 17
 Urinals, Latrines
 Drinking Facilities Section 18
 First Aid Facilities Section 19
Principal employer will have to provide these
facilities if not provided by contractor
 RESPONSIBILITY FOR PAYMENT OF WAGES

Contractor shall be responsible for payment of wages to his

labour.
Authorised, nominated Rep. of Principal employer is to be
present at the time of wages disbursement by the contractor.
Representative is to certify the wage payment.
Contractor to ensure wage disbursement in presence of the
authorised rep.of PE.
But in case the contractor fails…
If fails to make payment of wages, or makes short payment,
then the principal employer shall be liable to make
payment of wages in full or the unpaid balance due to the
contract labour employed by the contractor
PE can recover the amount so paid from the contractor
either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the
 Penalties

 Obstruction to inspector, willful refusal to

produce documents - punishable with
imprisonment for a term which may extend to 3
months, or with fine which may extend to Rs.
500, or with both
 Contravention of provisions – Act, rules or
condition of a licence granted
 3 Months or/& Rs. 1000. Continuation attracts
addl. fine upto Rs. 100/day
OFFENCES BY COMPANIES

 Co. as well as every person in charge/

responsible to the Co. for the conduct of its Bsns.
is treated as guilt & liable to be proceeded against
and punished
 Director, Manager etc. is also liable if it is proved
that the offence is committed with the consent or
connivance
 Exemption: If established that exercised without
knowledge or diligently handled
 Important Questions
Can we have different wages and other terms for
permanent employees and contract labour doing the
same or similar job
Liability of principal employer for injury, illness, disability, death
etc.
Each contractor engaging less than 20 but together they engage
more than 20.Will the provisions of registration, licensing and
other statutory provisions apply

Contractor changing but contract labour not changing

– implications, precautions required

Is Minimum Wages Act applicable to contract labour

TRADE UNION ACT 1926
TRADE UNION-DEFINED

 "Trade Union" means any combination, whether

temporary or permanent, formed primarily for the
purpose of regulating the relations between
workmen and employers or between workmen and
workmen, or between employers and employers,
or for imposing restrictive conditions on the
conduct of any trade or business
 Trade unions are formed to protect and promote
the interests of their members. Their primary
function is to protect the interests of workers
against discrimination and unfair labor practices.
 OBJECTIVES

 Representation
 Negotiation
 Voice in decisions affecting workers
 Member services
(a) Education and training
(b) Legal assistance
(c) Financial discounts
(d) Welfare benefits
APPROPRIATE GOVERNMENT


IF UNION’S ACTIVITIES ARE TO : CENTRAL GOVT.
COVER MORE THAN ONE STATE
GOVERNMENT
 IF ACTIVITIES LIMITED TO : STATE GOVT.
ONE STATE GOVERNMENT

ADMINISTRATION THROUGH REGISTRAR OF TRADE

UNIONS APPOINTED BY APPROPRITE GOVERNMENT
[CENTRAL OR STATE]
 PROCEDURE FOR OBTAINING
REGISTRATION
SIGNATURE OF 7 OR MORE MEMBERS REQUIRED.
PREPARE RULES PROVIDING FOR ALL FOLLOWING ITEMS:-
 NAME OF TRADE UNION.
 OBJECTS OF THE UNION.
 PURPOSES FOR WHICH THE GENERAL FUND CAN BE USED.
 MAINTENANCE OF MEMBERSHIP LIST AND PROVISION FOR
INSPECTION BY MEMBERS
• A MINIMUM SUBSCRIPTION OF 25 PAISE PER MONTH.
 MANNER OF AMENDING OR RESCINDING RULES.
 METHOD OF DISSOLVING UNION, REMOVING OFFICE BEARERS
AND MEMBERS.
 SAFE CUSTODY OF FUNDS.
 ANNUAL AUDIT OF ACCOUNTS & INSPECTION BY MEMBERS.
GRANT OF REGISTRATION
 IF THE APPLICATION PROVIDES FOR
PARTICULARS AS ABOVE AND THE
RULES OTHERWISE MEET WITH
REQUIREMENTS OF THE ACT, A
REGISTRATION CERTIFICATE WILL BE
ISSUED.
 CANCELLATION OF REGISTRATION

A REGISTRAR CAN CANCEL / ANUL THE REGISTRATION

AFTER GIVING TWO MONTHS ADVANCE NOTICE SPELLING
OUT THE GROUNDS.

GROUNDS CAN BE :
REGISTRATION HAS BEEN OBTAINED BY FRAUD OR BY
MISTAKETRADE UNION HAS CEASED TO FUNCTION

EVEN AFTER NOTICE FROM REGISTRAR, UNION IS

CONTINUING TO RETAIN IN THEIR BYE-LAWS OR RULES
PROVISIONS IN CONTRAVENTION OF TRADE UNION ACT

THE UNION HAS RESCINDED FROM THEIR BYE-LAWS ANY

PROVISION REQUIRED TO BE MAINTAINED UNDER Sn.6
IF THE MEMBERSHIP DROPS BELLOW THE REQUIRED
NUMBER [Sn 9C]
DISSOLUTION OF TRADE UNIONS

 A UNION CANDISSOLVE ITSELF BY MEMBERS VOTING SO

 A RESOLUTION SIGNED BY MEMBERS AND SECRETARY

MUST BE SENT TO REGISTRAR WITHIN 14 DAYS OF THE
MEETING

 DISSOLUTION EFFECTIVE FROM DATE RECORDED BY

REGISTRAR

 IF RULES DO NOT PROVIDE FOR DISTRIBUTION OF

FUNDS, REGISTRAR WILL DECIDE THE DISTRIBUTION
 CHANGE OF NAME OR AMALGAMATION OF
UNIONS

CHANGE NAME IF 2/3 APPROVE AND INFORM REGISTRAR

AMALGAMATE IF AT LEAST 30% OF EACH UNION FAVOURS IT

BENEFITS OF REGISTRATION
PRIOR TO ACT, TRADE UNION ACTIVITIES AMOUNTED TO
VIOLATION OF Sn.120 OF IPC- A CRIMINAL OFFENCE
IF REGISTERED UNDER ACT, MEMBER / OFFICE BEARERS
GIVEN CERTAIN AMOUNT OF LEGAL PROTECTION AGAINST
CRIMINAL PROSECUTION [PROVIDED THEIR AGITATION IS
PEACEFUL]
CAN PURSUE LEGITIMATE TRADE UNION ACTIVITY WITHOUT
FEAR OF CRIMINAL PROSECUTION

AN AGREEMENT IN IS VOID UNDER CONTRACT ACT – THAT IS

NOT APPLICABLE TO LEGITIMATE TRADE UNION ACTIVITIES
 MEMBERSHIP

 MINIMUM AGE 15 YEARS

 MEMBERSHIP LIST MUST BE OPEN FOR INSPECTION BY
MEMBERS
 CURRENT RATE OF SUBSCRIPTION IS 25 PAISE PER MONTH
[UNION COULD COLLECT HIGHER SUBSCRIPTION)

OFFICE BEARERS
 MINIMUM AGE 18 YEARS
 MUST NOT BE CONVICTED FOR MORALTURPITUDE WITH
PUNISHMENT OF IMPRISONMENT – UNLESS 5 YEARS
HAVE ELAPSED SINCE RELEASE FROM PRISON
 NOT MORE THAN 50% CAN BE OUTSIDERS (THOSE WHO

ARE NOT WORKMEN OF THE ESTABLISHMENT /

INDUSTRY

 RIGHTS OF REGISTERED UNIONS

 CAN ACQUIRE IMMOVABLE PROPERTY IN UNION’S NAME

 CAN SUE AND BE SUED AS LEGAL PERSON

 CAN CONSTITUTE POLITICAL FUNDS AND COLLECT

SUBSCRIPTIONS

 ENJOY PARTIAL IMMUNITY FROM CRIMINAL PROSECUTION

 CAN NOMINATE MEMBERS TO WORKS COMMITTEES UNDER

Sn.3 OF I.D. ACT.
AMENDMENTS IMPLEMENTED FROM 09-01-2002

A - MINIMUM MEMBERSHIP REQUIREMENT:-

(a) FOR WORKFORCE LESS THAN 7O = 7 WORKMEN
(b) FOR ,, BETWEEN 71 TO 1000 = 10%
WORKFORCE
(c) FOR ,, ,, ABOVE 1000 = 100 WORKMEN

B - MAXIMUM NUMBER OF OUTSIDERS AS LEADERS

(a) FOR EXISTING UNIONS [INORGANIZED SECTOR] = 50%
TO 331/3%
(b) PERSONS HOLDING POSITIONS OF PROFIT FROM GOVT
ARE DEBARED
(c) RETIRED / RETRENCHED WORKMEN OF SAME
ESTABLISHMENT WILL BE TREATED AS INSIDERS

C - MINIMUM SUBSCRIPTION ENHANCED FROM 25 ps TO Rs.

1 pm
WORKMEN’S COMPENSATION
ACT 1923
 OBJECT AND SCOPE

The act imposes statutory liability upon an employer

to provide payment to employees when they suffer from
physical disabilities & diseases during course of
employment.
It extends to whole of India.
 DEFINITIONS

Dependent
Means any of the following relatives of a deceased workman, namely
(i) a widow, a minor legitimate or adopted son, and unmarried
legitimate or adopted daughter, or a widowed mother; and
(ii) if wholly dependent on the earnings of the workman at the time of
his death, a son or a daughter who has attained the age of 18 years
and who is infirm;
(iii) if wholly or in part dependent on the earnings of the workman at
the time of his death,
(a) a widower, (b) a parent other than a widowed mother,
(c) a minor illegitimate son, an unmarried illegitimate daughter or a
daughter legitimate or illegitimate or adopted if married and a minor or
if widowed & minor,
(d) a minor brother or an unmarried sister or a widowed sister if a
minor, (e) a widowed daughter-in-law, (f) a minor child of a pre-
deceased son, (g) a minor child of a pre-deceased daughter where no
parent of the child is alive, (h) a paternal grandparent if no parent of
the workman is alive.
DISABLEMENT

PARTIAL DISABLEMENT" means

 where the disablement is of a temporary nature, such
disablement as reduces the earning capacity of a workman
in any employment in which he was engaged at the time of
the accident resulting in the disablement
 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
 “TOTAL DISABLEMENT" means 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 the accident resulting
in such disablement
 AMOUNT OF COMPENSATION

Section 4

Where death of a workman results from the injury:

 An amount equal to fifty per cent of the monthly wages of the
deceased workman multiplied by the relevant factor or an
amount of eighty thousand rupees, whichever is more.

Where permanent total disablement results from the injury:

 An amount equal to sixty per cent of the monthly wages of the
injured workman multiplied by the relevant factor or an
amount of ninety thousand rupees, whichever is more.
 PROCEDURE FOR CALCULATION
HIGHER THE AGE – LOWER THE COMPENSATION

TO
TYPE OF CONTIN- WHOM
QUANTUM OF BENEFIT REMARKS
BENEFIT GENCY PAY-
ABLE

PTDB [PER- WHEN TO 60 x QLFYING x AGE FACTOR MAXIMUM

MANENT INJURY WORK 100 WAGE GIVEN IN QUALIFYING
TOTAL OR MAN SCH-IV WAGE FOR
DISABLEME OCCUPAT COMPU-TATION
NT IONAL IS Rs.4000/- PM
BENEFIT] DISEASE OR
[Sn4(1)EXPL 1
[Sn4(1) LEADS TO &Sn-5]
(b)] TOTAL Rs.90,000/ WHICHEVER IS
INCAPA- HIGHER
HE HAS TO
CITY FOR [Sn4(1)(b)&ExPL-I) LEAVE
WORK
MENT
 CONTIN- TO
TYPE OF
WHOM QUANTUM OF BENEFIT REMARKS
BENEFIT GENCY PAY-ABLE

PPDB [PER- WHERE TO PTDB x % OF LOSS IN EARNING HE CAN

MANENT INDIVIDUAL EMP- AMOUNT CAPACITY GIVEN IN CONTINUE IN
PARTIAL INJURY/ LOYEE SCH – I EMPLOY
DISABLE- OCCUPA- MENT
MENT TIONAL
OR
BENEFIT] DISEASES
CRIPPLES
HIM PAR- % AS DETERMINED BY
[Sn4(I)(c)]
TIALLY [HE AUTHORITY AFTER
CON-TINUES TAKING MEDICAL
IN EMPLOY- EVIDENCE
MENT WITH
REDUCED
EARNING [Sn 4(1)(b)+4(1)(c)]
CAPACITY]
TYPE OF
CONTIN- TO WHOM
BENE QUANTUM OF BENEFIT REMARKS
GENCY PAY-ABLE
FIT

D.B WHEN TO DEPEN- 50 x QLIFYING x AGE ONE TIME PAYMENT

[DEATH DEATH DENTS OF 100 WAGE FACTOR TO BE SHARED
BENE- OCCURS DECEASED GIVEN AMONG ALL
FIT] DUE TO WORK DEPEN-DENTS
IN
ACCIDENT MAN
[Sn-4(1) SCH-IV
INJURY OR [SEE Sn-2(d) PAYMENT MUST BE
(a)]
OCCUPA- FOR MADE ONLY
TIONAL MEANING OF OR THROUGH W.C
DISEASE 'DEPEN- COMMISSIONER
DENT'] Rs.80000/- WHICHEVER
IS HIGHER MAXIMUM QUALI-
FYING SALARY
[Sn4(1)(a) & EXPL-I] Rs.4000 PM
[Sn4(1)(EXPL-I] &Sn-
5]
TYPE OF TO WHOM
CONTIN-
BENE QUANTUM OF BENEFIT REMARKS
GENCY PAYABLE
FIT

TDB WHEN TO INJURED A FORTNIGHLY PAYMENT PROVIDED

TEMPO- WORKMAN WORKMAN EQUAL TO 25% OF HIS DISABLEMENT
RARY IS TEMPO- WAGES FOR DURATION OF LASTS MORE
DISABLE- RARILY THAN 3 DAYS
TEMPORARY DISABLEMENT
MENT DISABLED
AND NOT [MAXIMUM PERIOD 5 YEARS]
BENEFIT PROVISION FOR
ABLE TO [Sn4(2) & 4(3)]
Sn4(1)(d), COMMUTING
REPORT INTO A
4(2),4(3),7
FOR WORK LUMPSUM ALSO
AVAILABLE
[Sn4(2)]

THIS IS IN
ADDITON TO
MEDICAL
EXPENSES TO
BE BORNE BY
EMPLOYER
 TYPE OF
CONTIN- QUANTUM OF
BENE TO WHOM PAYABLE REMARKS
GENCY BENEFIT
FIT

FUNERAL ON DEATH TO ELDEST SURVI-

BENEFITS OF VING DEPENDENT OR
Sn-4(4) WORKMAN ANOTHER
PERFORMING
FUNERAL RITES Rs.2500/- -

NOTE :

ii) IF THE ACCIDENT OCCURS OUTSIDE INDIA, THE

COMMISSIONER CAN ALSO TAKE INTO CONSIDERATION THE
RATE OF COMPENSATION PREVAILING IN THE FOREIGN
COUNTRY WHILE AWARDING COMPENSATION PAYABLE IN INDIA.
[Sn-4(1)(1-A)]
PENALTY

Where an employer is in default in paying the

compensation due under this Act, within one month from
the date it fell due, the Commissioner shall:

a) Direct that the employer in addition to the amount of

arrears, pay simple interest there on at the rate of 12% per
annum or on such higher rates.

b) Commissioner has the power under the Act to impose

penalty and the interest on the cleared amount as per the
provision of the act
DISTRIBUTION OF COMPENSATION.

 The compensation payable for death and

 The compensation payable to a woman or person of
legal disability shall be through the commissioner only.
 Employer can make advance payment directly to
dependents in case of death equivalent to three months
salary of the deceased person.
 Employer is exonerated from his liability if he deposits
the compensation amount with the commissioner
within the stipulated time.
 The commissioner shall call all dependents of the
deceased and determine the method for distribution of
compensation among them.
 If no dependents are found then amount shall be
refunded to the employer.
 On request by the employer the commissioner shall
furnish the details of disbursement.
CONTRACTING OUT OF THE COMPENSATION.

Any contract or agreement whereby a workman relinquishes

any right of compensation from the employer for personal
injury arising out of or in the course of the employment, shall
be null and void in so far as it purports to remove or reduce
the liability of any person to pay compensation under this
Act.
NOTICE AND CLAIM
To claim the compensation:
The claimant shall give notice of accident to the employer
or by entering in the notice book within the reasonable
period.
Every such notice shall give the name and address of the
person injured, the cause of the injury and the date on which
the accident happened and
Submit the claim application to the commissioner within
two years from the date of accident.
In case of occupational disease the accident is deemed to
have occurred on the first day of disease.
Defect if any in the notice or not giving notice or delayed
application will not bar the claim for compensation.
APPOINTMENT OF COMMISSIONER

 The State Government may, by notification in the Official

Gazette, appoint any person to be a Commissioner for
Workmen's Compensation for such area as may be
specified in the notification.
 Any Commissioner may, for the purpose of deciding any
matter referred to him for decision under this Act, choose
one or more persons possessing special knowledge of any
matter relevant to the matter under inquiry to assist him in
holding the inquiry.
 REFERENCE TO COMMISSIONERS

19(1) If any question arises in any proceedings under this Act

as to the liability of any person to pay compensation
(including any question as to whether a person injured is
or is not a workman) or as to the amount or duration of
compensation (including any question as to the nature or
extent of disablement), the question shall, in default of
agreement, be settled by a Commissioner.
19(2) No Civil Court shall have jurisdiction to settle, decide
or deal with any question which is by or under this Act
required to be settled, decided or dealt with by a
Commissioner or to enforce any liability incurred under
this Act.
 THE PAYMENT OF
GRATUITY ACT, 1972
APPLICABILITY
 Every factory, mine, oil plantation, port and
railway company
 Every shop or establishment – if it employs 10 or
more persons in the preceding 1 year.
 To any other establishment – employing 10 or
more persons.
PAYMENT OF GRATUITY

Gratuity is payable if there is :-

 Continuous service of 5yrs (not necessary incase
of death or disablement)
 On termination due to superannuation or retirement
 Resignation, death or disablement due to accident
or disease
 In case of death, the amount will be paid to
nominee or legal heir
CALCULATION OF GRATUITY

Monthly rate of wage last drawn X 15

26
Mode of payment of Gratuity

• In cash or DD or bank cheque

• Payment by postal money order if amount is less than
Rs.1000 if employee desires

Maximum amount payable is Rs.10,00,000

 DETERMINATION, APPLICATION AND NOTICE FOR
PAYMENT OF GRATUITY

 Person eligible has to make a written application to employer

within 30 days when it fell due.

 Incase of death, the legal heir must make application within 1

yr from when gratuity became applicable.
 As soon as gratuity becomes payable, employer must
determine the gratuity even before application is made and
must send notice to person to whom it is payable.

 Within 15 days of receipt of application, employer shall,

 If claim is admissible, send notice within 30 days
 If claim is inadmissible, send notice on form ‘M’
 To be paid within 30 days from the date it becomes payable
 If not paid within 30 days, simple interest from the payable
date to paid date.

No interest if delay is due to employees fault.

 GRATUITY DISPUTES
 In case of any dispute wrt gratuity, the amount
must be deposited with controlling authority and
application must be made to authority for direction
within 90 days of occurrence.
 Controlling Authority shall make due inquiries and
if claim is found admissible, direct payment is made
to person entitled.
 Such issue of direct payment must be made to
employer within 30 days from date of receipt of the
same by employer.
APPEAL

 The appeal is made by the person aggrieved by

order to Controlling Authority.
 Limitation – 60 days from the date of receipt of
order which is further extended to 60 days more
on sufficient cause
 NOMINATIONS
 To be made after completion of 1 years service. Form F
 An employee may in his nomination, distribute the amount of gratuity
payable to him, under this Act amongst more than one nominee.
 If an employee has a family at the time of nomination, the nomination
shall be made in favor of one or more members of his family, and any
nomination made by such employee in favor of a person who is not a
member of his family, shall be void.

 If at the time of making a nomination the employee has no family, the

nomination may be made in favor of any person but if the employee
subsequently acquires a family (Form ‘G’), such nomination shall become
invalid.
 A nomination may, be modified by an employee at any time, after giving
to his employer a written notice in such form and in such manner as may
be prescribed, of his intention to do so. Form ‘H’

 Every nomination, fresh nomination or alteration of nomination, as the

case may be, shall be sent by the employee to his employer, who shall
keep the same in his safe custody.
FAMILY
“Family", in relation to an employee, shall be deemed to consist
of
in the case of a male employee,
himself, his wife, his children,
whether married or unmarried, his dependent parents
the dependent parents of his wife and
the widow and children of his predeceased son, if any
 in the case of a female employee,
 herself, her husband, her children,whether married or
unmarried, her dependent parents and
 the dependent parents of her husband and the widow and
children of her predeceased son, if any
PENALTIES

OFFENCE PENALTY

False statements to 6mts imprisonment

avoid payment or Rs.10,000 or both

3mts – 1yr
Default in complying
imprisonment or
with Act
Rs.20,000 or both

Non-payment of 6mts – 2yr

Gratuity imprisonment
THE APPRENTICES ACT 1961
APPLICABILITY OF THE ACT

 The Act extends to the whole of India.

 Applies to those apprentices who are undergoing
apprenticeship training in designated trades.
 From time to time, the Central Govt. has specified the
designated trades.
 CONTRACT
OF APPRENTICESHIP
(1) No person shall be engaged as an apprentice to undergo
apprenticeship training in a designated trade unless such person or,
if he is a minor, his guardian has entered into a contract of
apprenticeship with the employer.

(2) The apprenticeship training shall be deemed to have commenced on

the date on which the contract of apprenticeship has been entered
into under sub-section (1).

(3) Every contract of apprenticeship may contain such terms and

conditions as may be agreed to by the parties to the contract.
OBLIGATIONS OF EMPLOYERS

(a) To provide the apprentice with the training in his trade

in accordance with the provisions of this Act, and the
rules made there under;
(b) If the employer is not himself qualified in the trade, to
ensure that a person who possesses the prescribed
qualifications is placed in charge of the training of the
apprentice;
© To provide adequate instructional staff, possessing
such qualifications as may be prescribed, for
imparting practical and theoretical training and
facilities for trade test of apprentices; and
d) Every employer shall make suitable arrangements in his
workshop for imparting a course of practical training to
every apprentice engaged by him in accordance with the
program approved by the Apprenticeship Adviser.

e) Where an employer employs 500 or more workers, the basic

training shall be imparted in separate part of the workshop
building or in a separate building set up by the employer.

f) Every employer shall maintain records of the progress of

training of each apprentice undergoing apprenticeship
training in his establishment in such form as may be
prescribed.
EMPLOYERS to ensure
 Placement of Training Officer with suitable
qualification
 Payment of stipend at a rate not less than the
prescribed minimum rate
 Not to pay on the basis of piece work
 Not to require to take part in any output bonus or
other incentive scheme.
 HEALTH, SAFETY AND WELFARE OF
APPRENTICES.
 In case of employment injury pay compensation
in accordance with the provisions of the
Workmen's Compensation Act,1923.
HOURS OF WORK, OVERTIME,
LEAVE AND HOLIDAYS
 The weekly and daily hours of work of an
apprentice while undergoing practical training in a
workshop shall be such as may be prescribed.
 No apprentice shall be required or allowed to work
overtime except with the approval of the
Apprenticeship Adviser
 An apprentice shall be entitled to such leave
as may be prescribed and to such holidays
as are observed in the establishment
CONDUCT AND DISCIPLINE.
In all matters of conduct and discipline, the
apprentice shall be governed by the rules and
regulations applicable to employees of the
corresponding category in the establishment in
which the apprentice is undergoing training.
RATE OF STIPEND
 As per the Govt. notification the rate of Stipend is
Rs. 1500/- p.m.
 As the Apprentice is a “Trainee” & not the worker
will be entitled for Stipend and not the
Salary/Wages.
NUMBER OF APPRENTICES
The Central Government shall, after consulting the
Central Apprenticeship Council, by order notified
in the Official Gazette, determine for each
designated trade the ratio of trade apprentices to
workers other than unskilled workers in that trade
TEST AND GRANT OF CERTIFICATE
& CONCLUSION OF TRAINING
1) Every trade apprentice who has completed the
period of training shall appear for a test to be
conducted by the National Council to determine
his proficiency in the designated trade in which he
has undergone his apprenticeship training.
(2) Every trade apprentice who passes the test
referred to in sub-section (1) shall be granted a
certificate of proficiency in the trade by the
National Council.
(3) The progress in apprenticeship training of every
graduate or technician apprentice, technician
(vocational) apprentice shall be assessed by the
employer from time to time.

(4) Every graduate or technician apprentice or

technician (vocational) apprentice, who completes his
apprenticeship training to the satisfaction of the
concerned Regional Board, shall be granted a certificate
of proficiency by that Board.
TERMINATION OF TRAINING
 On the expiry of the period of apprenticeship
training specified in the contract.
 Premature termination by employer
the employer shall pay to the apprentice such
compensation as may be prescribed.
 Premature termination by the apprentice
apprentice or his guardian shall refund to the
employer as cost of training such amount as may
be determined by the Apprenticeship Adviser.
OFFER AND ACCEPTANCE OF
EMPLOYMENT
It shall not be obligatory on the part of the
employer to offer any employment to any
apprentice who has completed the period of his
apprenticeship training in his establishment, nor
shall it be obligatory on the part of the apprentice
to accept an employment under the employer.
Disputes
Any dispute between an employer and an
apprentice arising out of the contract of
apprenticeship shall be referred to the
Apprenticeship Adviser for decision.
THE INDUSTRIAL
EMPLOYMENT (STANDING
ORDERS) ACT, 1946
IMPORTANCE
 No uniform practice governing the conditions of service
of workers
 No clarity of rights and obligations of the employer
 in respect of terms of employment, friction/dispute
between management and worker
 Demand for statutory service conditions raised by Bombay
Cotton Textile workers in 1927-28
 The Bombay Industrial Disputes Act of 1938 for the first
time provided for statutory standing orders.
 The Labour Investigation Committee emphasized the
workers’ right to know the terms & conditions of
employment
HIGHLIGHTS
 Object of the Act
 Scope and Application
 Definitions
 Submission of Draft Standing Orders
 Certification of Standing Orders
 Appeal
 Interpretation of Standing Orders
OBJECT OF THE ACT
 To require employers to define the conditions of
work
 To brig about uniformity in terms and conditions
of employment
 To minimise industrial conflicts
 To foster harmonious relations between employers
and employees.
 To provide statutory sanctity and importance to
standing orders
SCOPE AND APPLICATION
 Extends to the whole of India
 To every establishment wherein 100 or more
workmen are employed
 On any day preceding twelve months
 Once applicable to the establishment then it
continuous if the no. of workmen employed gets
reduced to less than 100
 The appropriate Govt. can exempt any
establishment from any of the provisions of the
Act.
 The Act has 15 sections and a schedule.
 It applies to all the skilled or unskilled,
manual, supervisory, technical, clerical work.
 The apprentices are also included.
 The persons employed mainly in a
managerial/administrative/supervisory
capacity drawing wages exceeding Rs.1600
are not covered
IMPORTANT DEFINITIONS
 Appropriate Government: State Government,
Central Government.
 Certifying Officer: means Labour
Commissioner/Regional Labour Commissioner
and includes any other officer appointed by the
appropriate Government, by notification in the
Official Gazette to perform such duties.
 Employer: owner of the establishment
INDUSTRIAL ESTABLISHMENT
 A factory defined in Section-2 (m) of the
Factories Act, 1948
 A railway defined in Railways Act, 1939
 Establishment defined in the Payment of Wages
Act, 1936
Standing Orders: The term ‘Standing Orders’
means rules relating to matters set out in the
Schedule of the Act.
SCHEDULE
Matters to be contained in the Standing Orders
 Classification of the workmen : temporary, casual, apprentices
 Manner of intimating to workmen
 Shift working
 Attendance and late coming
 Conditions of, procedure in applying for, and the authority which
may grant leave and holidays
 Requirements to enter premises by certain gates and liability to
search
 Closing and reopening of sections of the establishments,
temporary stoppages
 Suspension or dismissal for misconduct
 Acts and omissions which constitute misconduct
SUBMISSION OF DRAFT STANDING
ORDERS
 Obligatory on the part of an employer or a group
of employers to furnish 5 copies of the draft
standing orders
 Within 6 months of the application of the Act the
employer shall submit the draft standing orders
 Copies to be given to the certifying officer
 Draft has to enclose the prescribed particulars of
the workmen
 The status and name of the trade unions to be
given.
 It has to take all matters set out in the Schedule.
PROCEDURE FOR CERTIFICATION
OF STANDING ORDERS
 Copy of draft standing orders to be sent to trade
union/workmen
 Opportunity of hearing to trade union/workmen to be
provided
 Certification
 Certified standing orders have the force of law and the
violation of any provision shall be taken action
 Standing orders to be applicable to all present and future
workmen
 Standing orders must confirm the model standing order
CONDITIONS FOR CERTIFICATION
OF STANDING ORDERS
Must compile as per the Model Standing Orders
Fairness of the provisions shall be verified by the Certifying Officer

Appeal

Any employer, workman, trade union aggrieved by the order of

the certifying officer may, with in 30 days from the date on which
copies of the certified standing orders sent to them

Date of Operation of the Act

On the expiry of 30 days of the certification given by certifying officer

Or

After the expiry of 7 days of the decision given by appellate authority.

PAYMENT OF SUBSISTENCE
ALLOWANCE
 Payment of subsistence allowance by an employer
to a workman who has been suspended by the
employer and his investigation is pending
 the allowance shall be at the rate of 50% of the
wage for the first 90 days of suspension
 The allowance shall be 75% of the wage after 90
days if the investigation is delayed due to
employer
PENALTY
 Any employer fails to submit draft standing orders
or modifies it, shall be punishable with fine which
may extend to Rs. 5000.
 In case of continuance of the above offence, fine
up to Rs.200 per every day.
 Any contravention of Standing Orders is
punishable by Rs. 100 fine .
THE EMPLOYEES’ PROVIDENT
FUNDS AND MISCELLANEOUS
PROVISIONS ACT, 1952
OBJECTIVE
To provide a kind of social security to the
industrial workers. The Act mainly provides
retirement or old age benefits, such as Provident
Fund, Superannuation Pension, Invalidation
Pension, Family Pension and Deposit Linked
Insurance

The Act provides for payment of terminal benefits

in various contingencies such as retrenchment,
closure
APPLICABILITY OF THE ACT
 To every factory employing 20 or more
persons.
 Any establishment to which the Act applies
shall continue to be governed by the Act
even if the number of persons employed
therein at any time falls below.
APPLICABILITY
Every employee employed in or in connection
with the work of a factory or other establishment
covered by the schemes other than an excluded
employee is entitled and required to become a
member of the fund from the date of joining the
factory or establishment.
EXCLUDED EMPLOYEE
 An employee who, having been a member of the fund,
has withdrawn the full amount of his contribution in
the fund (a) on retirement from service after attaining
the age of 55 years or (b) before migration from India
for permanent settlement abroad; or for taking
employment abroad

 An employee whose pay at the time he is otherwise

entitled to become a member of the Fund, exceeds Rs.
6,500/- per month.

 A person who, is an apprentice, or who is declared to

be an apprentice by the authority specified in this
behalf by the appropriate Government.
CONTRIBUTION UNDER EPF
SCHEME,1952
1. Employees : 12% on Basic + DA
2. Employer :
(a) 3.67% on Basic + DA
(b) Administrative Charges : 1.10% on
Basic +DA
THE EMPLOYEES’ PENSION
SCHEME, 1995
Purpose: The purpose of the scheme is to provide
for (1) superannuation pension, retiring pension or
permanent total disablement pension to employees
covered by the Employees’ Provident Funds and
Miscellaneous Provisions Act, and (2) widow or
widower’s pension, children pension or orphan
pension payable to the beneficiaries of such
employees.
CONTRIBUTION
1. Employee: Not required
2. Employer :
(a) 8.33% on Basic + DA

It is to be noted that where the pay of the member

exceeds Rs. 6,500/- per month, the contribution
payable by the employer will be limited to the
amt. payable on his pay of Rs. 6,500/- only.
FORMALITIES UNDER EPF ACT
 Employees have been appointed on salary( Basic+
DA or Consolidated ) of Rs. 6500 or less or
covered under the provision of the EPF Act, right
from the day of commencement of their work.
Employee can contribute more behind Rs.6500
similarly employer also at his discretion can do so
but not mandatory
 EPF Act is applicable to such of the
establishments who are engaging 20 or more
persons or had engaged 20 or more persons at any
time during calendar year.
 Casual workers/ Temporary workers/
Probationary, even if they had performed work
even for a day, are technically taken into account
for the purpose of assessments of strength of 20
for the purpose of applicability of the act and are
also covered under the act. Apprentices/ Trainees
are excluded from the definition of employees.
 Percentage of contribution to be deducted from
employees contribution is 12% of his salary,
namely Basic + DA , but does not include HRA,
CCA, Incentive, Bonus, Washing allowance etc.
 Employer contribution of 12% of the salary of
employees is to be paid as under
• 3.67% to be remitted in Account No.1
( Employees Account)
• 8.33% to be remitted in Account No.10
towards pension fund

 In addition to 12% of the employer has to remit

1.61% paid as under
• 1.10% Administrative charges in Account No.2

• 0.5% EDLI in Account No.21

• 0.01% Inspection charges in Account No.22

THE EMPLOYEES’ DEPOSIT-
LINKED INSURANCE SCHEME, 1976

Purpose : To provide life insurance benefits

to the employees of the establishments
covered by the EPF & MP Act, 1952
CONTRIBUTION UNDER EDLI
SCHEME,1976
1. Employees : Not required
2. Employer :
(a) 0.5% on Basic + DA
(b) Administrative Charges : 0.01% on
Basic +DA
Where the monthly pay of an employee is more
than Rs. 6,500 the contribution payable in respect
of him by the employer is limited to the amts
payable on a monthly pay of Rs. 6,500 only.
 COMPLIANCES UNDER EPF &
MP ACT, 1952
Sr. Type of Compliance Form Compliance Date Remark /
No. No. Submitted to

1. Declaration Form from new 2 At the time of RPFC office

Joinees joining

2. Monthly contribution of Employer Challan Before 15th of In SBI

& Employee in Challan for every month
previous month

3. Return of Employees Qualifying 5 Before 15th of RPFC office

every month

4 Return of Employees Leaving 10 Before 15th of RPFC office

every month

5 Monthly Return 12A Before 25th of RPFC office

every month
Sr. Type of Compliance Form No. Compliance Date Remark /
No. Submitted to

6. Annual return & reconciliation 3A & 6A Before 30th of April RPFC office
statement

7. Transfer of PF A/c 13 When new Recruit RPFC office

8. Final settlement 19, 10C & At the time of RPFC office

10D Leaving the service

9. Advances for various Purpose 31 After 5 Years of

membership
THE PAYMENT OF WAGES
ACT 1936
WAGES
Wages” has been defined as all remuneration (whether by
way of salary, allowances or otherwise)
Wages includes the following :-
1. Any remuneration payable under any award or settlement
2. Payable in respect of overtime work or holidays.
3. Payable under the terms of employment (bonus or
incentives)
4. Payable by the reason of termination
5. Payable under any scheme framed by any appropriate law.
BACKGROUND
 The earlier methods to determine wages were
biased towards the employer.
 This unilateral action on the part of employers
forced the state to legislate in order to regulate the
mode and manner of wage payment.
 An act which regulate the payment of wages to
certain classes of employed persons.
 The existence of evil practices such as less, non,
irregular payments etc. was found by a committee
appointed by govt. of India in 1925.
BACKGROUND
 With an intention to remove all those practices
legislative proposals were formulated in 1928.
 These legislation were placed before Royal
commission on labour in 1929.
 Then the Payment of wages act came in picture in
1936, the first legislation of its kind in India.
IMPORTANT PROVISIONS
 Every employer is responsible for payment of
wages to persons employed by him directly or
indirectly.
 Fix a wage period. Wage period should be fixed,
but no wage period should exceed one month
 Prescribe a manner for the payment of wages
 All wages are to be paid in current coins or
currency or in both. However if the worker permit
then it can also be paid in the form of cheque or by
crediting his ban account.
 TIME OF PAYMENT OF WAGES

 When in any kind of establishment the number of employed

person is less than 1000 then wages should be paid within the
first week.
 When there is 1000 or more number of employees are working
then it should be paid within 10 days.
 However, in the case of persons employed on a dock, wharf or
jetty or in a mine wages found due on completion of the work
and should be paid within 7 days from completion
 In case of termination the due wages is paid before the expiry
of the second working day from the day of his termination.
 DEDUCTIONS

 Permissible authorized deductions are as follows fines, absence

from duty, damage or loss, house accommodation or service
rendered, recovery of advances or for adjustment of
overpayments, recovery of loans, income-tax, order of the court,
insurance schemes and co-operatives
 Deductions on the written authorization by the employed person.
 Total amount of deductions should not exceed 75% of total
wages where such deductions are wholly or partly made for
payments to co-operative societies and 50% in other cases.