Administrative Tribunals for Civil Services
  By P.D. Mathew
  P.M. Bakshi

Introduction

Since November I, 1985 a Central Administrative Tribunal has been functioning in several cities, constituted under the Administrative Tribunals Act, 1985. Under the Act Tribunals were created to adjudicate and try disputes and complaints regarding recruitment and conditions of service of persons in public services and posts in connection with the affairs of the Union or of any State, or of any local' or other authority or Government corporation. The Act was passed in pursuance of article 323A of the Constitution. It states that Parliament may, by law, set up tribunals. Administrative Tribunal became necessary as a large number of cases on service matters were pending before various courts.

At first, a Central Administrative Tribunal was constituted, but the Act also envisages State Administrative Tribunals for State services. There can be Joint Administrative Tribunals for two or more States. The Tribunals have jurisdiction over "service matters." As defined in Section 3 (q) of the Act, the expression means all matters relating to conditions of service regarding remuneration, pension and other retirement benefits, tenure, leave, disciplinary and other matters.

Jurisdiction of all courts (except the Supreme Court under article 136 of the Constitution) is excluded' in respect of recruitment, and matters concerning recruitment, to any service or post or service matters regarding which Administrative Tribunals have jurisdiction (Section 28) .This means that the writ jurisdiction of High Courts is also excluded in respect of such matters.

Procedure before the Administrative Tribunal is through application to the Tribunal, and through suit. Hence, court fees generally payable for suits need not be paid. The Tribunal is not "bound by" the Code of Civil Procedure, but "shall be guided by the principles of natural justice" and, subject to the Act and the rules, has power to regulate its own procedure. It is required to decide every application as soon as possible. It is ordinarily expected to decide every application after perusal of documents and written representations and after hearing oral arguments, if any.

Application to the Tribunal must be filed within one year of the final order passed by Government or other authority, officer or competent person on the applicant's appeal or representation of a grievance. If no final order has been passed on the representation, a one year period is counted from the end of 6 months after the representation. For sufficient cause, the Tribunal can take up a delayed application. Counsel can appear before the Tribunal,. One can appeal against the Tribunal's decision to the Supreme Court with leave of the Supreme Court.

The language of the Central Tribunal is English (Rule 3 (I), Central Administrative Tribunals (Procedure) Rules, 1985.) but the Bench may, at its discretion, permit use of Hindi in the proceedings. An application before the Central Administrative Tribunal can be presented personally or through an agent or counselor may be sent by registered post to the Registrar. The application fee  is Rs 50. The application must (Rule 9, Central Administrative Tribunal. (Procedure) Rules, 1985.) be accompanied by a paper book containing the prescribed documents. No fee (Rule 7, Central Administrative Tribunal (Procedure) Rules, 1985.) is charged for inspection.

Salient features of the jurisdiction, procedure and working of the Administrative Tribunals are dealt with in the questions and answers that follow.



1.  Rule 3 (1), Central Administrative Tribunals ( Procedure) Rules, 1985.
2.  Rule 7, Central Administrative Tribunals (Procedure) Rules, 1985.
3.  Rule 9, Central Administrative Tribunal (Procedure) Rules, 1985

                                                              Preliminary

Q.1. What is the Central enactment under which Tribunals for service matters are constituted?

Ans. They are constituted under the Administrative Tribunals Act, 1985.

Q;2. What is the aim underlying the creation of these Tribunals?

Ans. The aim is to make for quick disposal of disputes on service matters and to reduce the burden on
        High Courts and other courts.

Q.3. What are the services to which the Administrative Tribunals Act does not apply?

Ans. The  Act does not apply to the armed forces, persons governed by the Industrial Disputes Act,
        1947, staff of the Supreme Court and High Courts and staff of Parliament and State Legislatures.

Q.4, What are the services covered by the Central Administrative Tribunal?

Ans. The services covered by the Central Administrative Tribunal are All India Services, Civil Services of
        the Union and civil posts under the Union (other than those specifically excluded).

Q.5. What is the position regarding Government corporations?

Ans. The provisions of the Administrative Tribunals Act, 1985 can be extended by the Central
        Government by notification to:

       (a) local and other authorities within the territory of India ether than those controlled by a State
            Government;

       (b) corporations owned or controlled by Government other than those owned or controlled by a
            State Government.

Q.6. What are the services covered by a State Administrative Tribunal?

Ans. (a) A State Administrative Tribunal can pass jurisdiction in matters of State civil services and civil
             posts under the State.

        (b) By notification of the State Government, the Act can also extend to local and other authorities
             and corporations controlled or owned by the State Government.

Q.7 .What is the meaning of "service matters"?

Ans. The jurisdiction of an Administrative Tribunal constituted under the Administrative Tribunals Act,
        1985 extends to "service matters" of members of the respective services or holders of respective
        posts. For an individual "service matters" means all matters relating to the conditions of his service
        such as the following:

(i) remuneration (including allowances), pension and other retirement benefits;

(ii) tenure, including confirmation, seniority, promotion, reversion, premature retirement and
    superannuation;

(iii) leave of any kind;

(iv) disciplinary matters;

(v) any other matter whatsoever.

The following illustrations will make the matter clearer:

Illustrations

(i) A Central Government servant is placed at number 120 in the Seniority List. Her claim is that she
    should be placed at No.8. She can (if her representation is rejected by the competent authority) apply
    to the Central Administrative Tribunal on the basis that the placement violates relevant rules.

(ii) A stenographer in the Central Secretariat is not confirmed for ten years. There is no adverse report
    against her, nor is she informed of any charge against her. Persons junior to her are confirmed. She
    can apply to .the Administrative Tribunal for appropriate relief (after exhausting administrative
    channels).

(iii) An Inspector in the Posts and Telegraphs 'Department is arbitrarily denied leave due to him or his
     leave has been miscalculated. He can apply to the Administrative Tribunal (after
     exhausting administrative channels),

(iv) A Station Superintendent (in the Railways) is dismissed without proper opportunity to show cause.
     He can apply to the Central Administrative Tribunal (after exhausting administrative channels) for
     re-instatement and arrears of salary. (v) A lady translator in the External Affairs Ministry is denied
     maternity leave due to her. She can (after exhausting administrative channels) apply to the Central
    Administrative Tribunal for suitable monetary compensation

(vi) A retired Principal of a Government College has not been paid his provident fund for along time. He
      can (after exhausting administrative ,channels) make an application to the  administrative Tribunal
      for an order directing the concerned Department to pay him the due amount.
 
 

                                            Administrative tribunals

Q. 8. Who appoints Administrative Tribunals?

Ans. The power to constitute Tribunals is vested in the Central Government. But an Administrative
        Tribunal for a State can be established only on a request from the State Government.

Q. 9. What is the composition of Administrative Tribunals?

Ans. (a) Each Administrative Tribunal consists of a Chairman, and such number of Vice Chairmen and
            other members, as the appropriate Government deems fit.

        (b) Jurisdiction, powers and authority of the Tribunal may be exercised by Benches of the
             Tribunals.

        (c) A Bench is presided over by the Chairman or a Vice-Chairman and consists of at least two
             other members.

Q. 10 What are the places at which the Administrative Tribunal sits?

Ans. The places at which the principal Bench of the Tribunal (presided over by the Chairman) and the
        Additional Benches (presided over by Vice-Chairmen) ordinarily sit is specified by the appropriate
        Government in a notification.

Q. 11. What are the qualifications for being appointed to the Administrative Tribunal?

Ans. The Chairman and Vice-Chairmen must be persons who are or have been High Court Judges or
        have held certain senior posts in Government for at least two years. Members must be persons
        who are or have been High Court Judges, or are qualified to be High Court Judges, or who have
        held certain Government posts for the specified period.

Q. 12. What is the term of office of members of the Administrative Tribunals?

Ans. The Chairman, Vice-Chairman or other Member of the Administrative Tribunal can hold office for five
        years from the date of entrance or until superannuation, whichever is earlier. Superannuation is 65
        years for Chairman or Vice-Chairman and 62 years for other members.

                                                Jurisdiction

Q. 13. What is the jurisdiction of the Administrative Tribunal?

Ans. For members of the respective services, the Administrative Tribunal has all the jurisdiction, power
        and authority exercisable (before the relevant date) by all courts (except the Supreme Court) under
        Article 136 of the Constitution in matters of recruitment, and all other "service, matters".4 (4. See
        Question 7. supra)

Q. 14. Can writs be issued in service matters by the High Courts after constitution of the
          Administrative Tribunals?

Ans. No court (except the Supreme Court under Article 136 of the Constitution) has, or is entitled to
        exercise, any jurisdiction, powers or authority on recruitment or matters concerning recruitment or
        service matters in regard to services or posts within the jurisdiction of the Tribunal (Section 28,
        Administrative Tribunals Act, 1985.)

                                                   Procedure

Q.15. How is a proceeding before the Administrative Tribunal initiated?

Ans. (a) A person aggrieved by any order pertaining to any matter within the jurisdiction of a Tribunal
             may apply to the Administrative Tribunal for the redressal of his grievance.

        (b) The order may be of the Government ( or authority or corporation controlled by Government) or
             of an officer, committee, body or agency of the Government ( or authority).

Q.16. What is the form of the application?

Ans. The form of the application is to be prescribed by the rules (Section 19(2), Administrative Tribunals
        Act, 1985). So far as the Central Administrative Tribunal is concerned, the form is prescribed by
        rule 4 of the Central Administrative Tribunal (Procedure) Rules, 1985 and Form 1 annexed to those
        rules.

        These rules provide that the application may be presented by the applicant in person, or by an
        agent or by duly authorised legal practitioner to the Registrar or sent by registered post addressed
        to the Registrar .

       The application should be presented in six complete sets in a "paper book" form5 with an ( 5. see
       Question 19, infra.) empty, file size envelope, bearing full address of the respondent. Where the
       number of respondents is more than one, sufficient number of extra paper books, with empty file
       size envelopes bearing full address of each respondent must be sent.

Q.17. Where is the application to be filed?

Ans. For the Central Administrative Tribunal the application is to be filed with the Registrar of:

      (a) the additional Bench within whose jurisdiction the applicant is posted for the present, or

      (b) the principal Bench at Delhi. (Rule 6, Central Administrative Tribunal Rules, 1985)

Q.18. What should the application contain?

Ans. So far as the Central Administrative Tribunal is concerned, the application must state, Concisely
        under distinct heads the grounds for the application, to be numbered consecutively. It should be
        typed in double space on one side, of the paper. Interim relief may be included in that very
        application. (Rule 8, Central Administrative Tribunal Rules, 1985).

Q.19. What are the contents or the "paper book" to accompany the application to the
         Administrative Tribunal?

Ans. For the Central Administrative Tribunal, every application should be accompanied by a paper book,
       6 (6. Question 16; supra. containing the following:

(i) certified copy of the order against which the application has been filed;

(ii) all documents relied upon by the applicant and mentioned in the application;

(iii) details of the crossed Demand Draft or crossed Indian Postal Order representing the application fee
     of Rs. 50; and

(iv) index of documents.
      (Rules 9 (I) and 7, Central Administrative Tribunal Rules, 1985).

The documents mentioned above should be clearly typed in double space on one side of the paper, duly attested by a gazetted officer and numbered accordingly. The authority (of the agent) or Vakalatnama, must also accompany the application. (Rule 9 (2) and 9 (3), Central Administrative Tribunal Rules, 1985).

Q. 20. Can a department representation and proceedings before the Administrative Tribunal go on simultaneously?

Ans. No. Where an application has been admitted by an Administrative Tribunal, every proceeding under the relevant "service rules" on redressal of grievance in an application pending immediately before such admission has to stop and unless otherwise directed by the Tribunal, no appeal or representation on the matter will be entertained under such rules.

Q. 21. What is the meaning of "service rules as to redressal of grievances"?

Ans. The expression "service rules as to redressal of grievances", means the rules, regulations, orders or other instruments or arrangements which are in force for the present for redressal
of grievances in matters (other than coming under Administrative Tribunals Act).

Q. 22. Should the applicant exhaust departmental remedies?

Ans. An Administrative Tribunal does not ordinarily admit an application unless it is satisfied that the applicant had availed of all remedies available to him under the "relevant service rules as to redressal of grievances".7 (7. See Question 21, supra)

Q. 23. When is a person regarded as having availed of all remedies available under the service rules?

Ans. A person is said to have availed of all such remedies-

(a) if a final order has been made by Government or other authority or officer or other person competent
     to pass such order under such rules, rejecting any appeal preferred or representation made by such
     person in connection with the grievance; or

(b) where no final order has been made by the Government or other authority or officer or other person
    competent to pass an order on the appeal preferred or representation made by him if a period of six
    months from the date on which such appeal was preferred or representation was made has expired.

Any remedy such as Memoranda to the President, Governor or other functionary is not. considered a, "remedy available," unless the applicant had chosen to submit such Memoranda.

                                                            Limitation

Q. 24. What is the period of limitation for an application to the Administrative Tribunal?

Ans. (a) A Tribunal will not admit an application, where a "final order"8 ("8. Question 23, supra.) has
             been made by the Government or other authority etc. unless the application is made within one
             year from the final order.

        (b) In a case where an appeal or representation has been made9  ('9. Question 23, supra) and six
             months have expired without a final order, unless the application is made within one year from
             the date of expiry of six months, it cannot be admitted.

        (c) The Administrative Tribunal can, however, admit an application filed after expiry of the above
             period, if the applicant satisfies the Tribunal that he had sufficient cause for not having applied
             within such period. (Section 21, Administrative Tribunals Act, 1985).

Q. 25. What is the meaning of "sufficient cause" for entertaining an application beyond limitation?

Ans. The concept of "sufficient cause" for entertaining an application filed after the expiry of the period of limitation 10 (10.Question 24, supra.) before the Administrative Tribunal, has been borrowed with applications before ordinary civil courts. Case law on the Limitation Act may, in general, be taken as a guide by Administrative Tribunals also to consider applications. Illness of a party, illness of counsel, death of some near relative, floods etc. rendering journey difficult would, prima facie, be "sufficient cause" for delay in the case la won the Limitation Act. It has been debated (with reference to the Limitation Act) whether wrong advice given by counsel on the issue of limitation is a "sufficient" cause for delay. More recent trend in courts has been liberal in this regard.

Apart from these situations (which are common to civil suits and proceedings before Administrative Tribunals), there are a few special situations which can arise before Administrative Tribunals. For example, a Government servant may think that a particular matter is outside the jurisdiction of the Administrative Tribunal and takes proceedings to a civil court which refuses to entertain it. The time spent between the two would be a "sufficient cause" for condoning the delay. Similarly, if the Government servant had reasonable hope that his matter would be re-considered by a higher authority that itself may, in some circumstances, be sufficient ground for condonation of delay.

Problems are also Iikely to arise in interpretation of the  expression "final order"' with reference to which the starting point of limitation is to be computed. Orders in Government  departments are not always precise, particularly when they are passed at a level lower than the Secretariat and, in practice, it may not always be easy to decide: whether a particular order is final or not. In such dubious cases. a misapprehension or misconception about the finality of an order may be a sufficient cause for condoning the delay.

In general, recent judicial trend (under the Limitation Act) has been liberal. The party seeking condonation has to explain the delay 'satisfactorily, It is not possible to state precisely what facts or matters constitute "sufficient cause." But those words should be liberally 'construed for substantial justice, where no negligence, inaction or want of bona fides is imputable to the party seeking condonation. The delay should not have been for reasons which indicate the party's negligence in not taking necessary steps."( Sandhya Rani Sarkar v. Sudha Rani Debi, A.I.R. 1978 S.C.537)

                                                    Procedure

Q. 26. What is the procedure followed by Administrative Tribunals?

Ans. .A Tribunal is not bound by the procedure in  the Code of Civil Procedure, 1908 but is guided by
         the principles of natural justice. Subject to the Act and rules, the Tribunal has power
         to regulate its own procedure, including fixing of place and time of inquiry and sittings in private.

Q. 27. Are there any time limits for deciding applications?

Ans. A Tribunal should decide every application as soon as possible, and ordinarily every application
        should be decided on a perusal of documents and written representation and after hearing of oral
        arguments, if any, allowed by the Tribunal in the circumstances of the case (Section 22,
        Administrative Tribunals Act, 1985).

Q. 28. Are oral arguments allowed in proceedings before the Administrative Tribunals?

Ans. So far as the Central Administrative Tribunal is concerned, Central Government rules provide that
        the Tribunal should allow the applicant and the respondent to give oral arguments when it may
        think necessary.

                                                Appearance of parties

Q. 29. What happens if the applicant fails to appear before the Tribunal?

Ans. (a) The application can be dismissed for default (Section 22 (3) (f ). The Central Administrative
             Tribunal also provides that if the applicant does not appear when the application is called for
             hearing, the Tribunal may, either dismiss the application for default or hear and decide it on
             merit.

        (b) An application dismissed for default can be restored for sufficient cause (Section 22 (3) (b),
             Rule 15, Central Administrative Tribunal Rules, 1985) .

Q. 30. What happens if the respondent does not appear before the Administrative Tribunal?

Ans. (a) The Administrative Tribunal can proceed ex parte if the respondent does not appear on the day
             fixed for hearing (Section 22 (3) (g), Administrative Tribunal Act, 1985).

        (b) In the case of the Central Administrative Tribunal, the rules further add that if the respondent
             does not appear, the Tribunal can adjourn the case or hear and decide the application ex parte
             (Rule 16 Central Administrative Tribunal Rules, 1985).

Q. 31. Can an order passed ex parte by the Administrative Tribunal. be set aside
          subsequently?

Ans. Yes. The Act specifically provides that the Tribunal has the same powers as a civil court for setting
                aside an order passed by it ex parte (Section 22 (3) (h), Central Administrative Tribunal
                Rules, 1985)

Q. 32. Are counsels allowed to appear before Administrative Tribunals?

Ans. Yes. An applicant can take the help of a legal practitioner of his choice to present his case before
               the Tribunal Orders

Q. 33. Can Administrative Tribunals pass interim orders?

Ans. Yes, subject to certain provisions of notice and opportunity or hearing to the other party.

Q. 34. How are orders of the Tribunal executed?

Ans. Subject to the Act and the rules., the order of an Administrative Tribunal should be executed in the
        same manner as final order executed under the Service Rules.

                                                       Appeals

Q. 35. Is an appeal allowed against the decision of an Administrative Tribunal?

Ans. The only appeal allowed against an order of the Administrative Tribunal (Central or State) is to the
        Supreme Court, with its special permission under Article 136 of the Constitution.

The Act should also have allowed appeal to the Supreme Court on the certificate of the Administrative Tribunal that the case involves interpretation of the Constitution, or that the case involves a substantial question of law which needs to be decided by the Supreme Court.

                                                        Evidence

Q. 36. Has the Administrative Tribunal power to summon witnesses?

Ans. The Administrative Tribunal has several powers of a civil court as enumerated in the Act. This
        includes power to summon witnesses and requisition documents The last mentioned power is
        subject to the provisions of Sections 123-124 of the Indian Evidence Act, 1872 (Section 22 (3) (d),
        Administrative Tribunals Act, 1985.) Sections 123-124 of the Evidence Act recognise Government
        privilege regarding unpublished documents on affairs of State and certain confidential official
        communications. But it should be mentioned that according to recent trends in India, the privilege
        of Government cannot be arbitrarily exercised and the Court has the ultimate power to decide if a
        particular document is entitled to "Government privilege" or not. The Central Administrative Tribunal
        itself has also shown a liberal approach in this regard.
 

                                                           Review

Q. 37. Ca n the Administrative Tribunal review its decision?

Ans. Yes. The Act provides that the Administrative Tribunal has the same power as a civil court of
               reviewing its decision (Section 22 (3) (f), Administrative Tribunals Act, 1985).
 
 



 
THE INDIAN BOILERS ACT, 1923.
 

This Act, in brief, provides for--

Prohibition of use of unregistered or uncertified boiler:

1.  The owner of a boiler is required to have the boiler registered in accordance with the provisions of this
     Act.

2.  Registration in the prescribed  manner is necessary also in the case of boiler transferred from one
     state to another.

3.  Unless a certificate or provisional order authorising the use of Boiler is for the time being in force
     under this Act.

4.  The State Government rules require that Boilers Shall be in charge of persons holding certificates of
     proficiency or competency.

Registrations:  The owner of a boiler is required to apply to the Inspector with a prescribed fee.  The Inspector is required to fix a date within thirty days or shorter period, from the date of receipt, for the examination of the boiler and give not less than 10 days notice of the same to the owner.  The Inspector shall proceed to measured and examine the boiler to determine the maximum pressure and shall report the result of the examination to the Chief Inspector in the prescribed form.  The Chief Inspector may register the boiler and assign a register number forth with or after satisfying himself that any structural alternation, or renewal which he may deem necessary has been made.  However, where the Chief Inspector refuses to register, he shall forthwith communicate his refusal to the owner of the boiler together with the reasons thereof.  On registration, Chief Inspector may order the issue of a prescribed certificate for the use of the boiler for a period not exceeding twelve months and not exceeding prescribed maximum pressure.

Renewal of Certificate:

Certificate ceases on the expiry of the period granted or when an accident occures to the boiler or when the boiler (of a specified type) is moved or when any structural alternation, addition or renewal is made in or to the boiler or if the Chief Inspector so directs, when any structural alternation, addition or renewal is made in or to any steam-pipe attached to the boiler.  When a certificate ceases to be in force, the owner of the boiler may apply to the Inspector for renewal thereof on payment of the prescribed fee.

Examination notice is again prescribed.

If the Inspector proposes to issue any certificate, increasing or reducing the maximum pressure, alternations, etc. he shall, within forty-eight hours, inform the owner of the boiler the reasons there for and forthwith report the case for orders to the Chief Inspector.

The Chief Inspector may order renewal of the certificate or may refuse to renew it on such terms and conditions as he may think fit.

The Act also provides provisional orders by the Chief Inspector for the use of the boiler pending a grant or Certificate.

The Chief Inspector may, at any time, revoke any certificate or provisional order.

No Structural alterations, additions, or renewal shall be, made to any boiler or steam-pipe unless the same is sanctioned in writing by the Chief Inspector.

Duty of owner at Examination:

1.  To afford to the Inspector all reasonable facilities for the examination and all such information as may
     reasonably be required by him.

2.  To have the boiler properly prepared and ready for examination in the prescribed manner and

3.  In the case of an application for the registration of a boiler, to provide such drawings, specifications,
     certificates and other particulars as may be prescribed.  Failure, on the part of owner can lead to
     refusal to examination by the Inspector on whose report Chief Inspector may require the owner to
     file fresh application.  Owner's duty to produce certificates is also specified.

The Act further provides for Transfer of Certificates etc, Inspector's power of entry, Report of accident within 24 hours of the accident and Appeals to Chief Inspector and to Appellate Authority whose powers are also specified.  Powers of Central Government to revise order of Appellate Authority in finality is also
provided.

Penalties are detailed for owner's neglect, illegal use of boiler, tampering with register mark etc.  Limitation and previous sanction of Chief Inspector for prosecution and trail or offence by a Court not inferior to the Presidency Magistrate or a Magistrate of the First Class is specified.

Power of Central Boilers Board and of Central Government to make rules are also specified.
 


THE CHILDREN (PLEDGING OF LABOUR) ACT, 1933

This is avery brief Act, enacted to prohibit the pledging of the labour of children.

Child means a person under 15 years of age.

Objective: To prohibit the making of aggrements of pledge the labour of children and the employment of children whose labour has been pledged.

Agreement: An agreement to pledge the labour of a child means an agreement, written or oral, express or implied, where by the parent or guardian of a child, in return for any payment or benefit or to be received by him, undertakes to cause or allow the services of the child to be utilised in any employment.

An agreement made without detriment to a child and not made in consideration of any benefit other than reasonable wages, and terminable at not more than a week's notice, is valid.

Penalty: Parent or guardian, inclusive of any person having legal custody of or control over a child, who makes an agreement to pledge the labour of that child, shall be punishable with the which may extend to fifty rupees. Fine upto two hundred rupees is imposable on any person making such agreement with the parent or guardian of the child. Similar fine is awardable on any person employing or permitting the employment of a child whose labour is pledged by such an agreement. 



 
THE EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
The Objective:
To provide for the institution of Provident funds (Family pension and deposit linked insurance fund) for employees in factories and other establishments.

Thus the Act covers Provident Fund, Family Pension and Insurance for the benefit of employees and their families.

Employees contribute their share, equal to employers, to Provident Fund, inclusive of family pension but have no contribution to make towards deposit linked Insurance fund.

The Applicability:
Factories engaged in any industry specified in schedule I which employ twenty or more persons. Central Government also notifies the applicability to other establishments.

Establishments once covered, continue to be covered irrespective of number of persons employed.

All departments and branches of the establishment covered also come under the purview, irrespective of the place they are situated.

Non-Applicability:
1) Cooperative Societies employing less than fifty persons and working without the aid of power and

2) Other establishments employing (a) fifty or more persons or (b) twenty or more persons, but less than
    fifty persons, until the expiry of (i) three years or (ii) five years, respectively from the date on which the
    establishment is or has been set up.

Power to decide the applicability is with the Central Government and not with the Commissioner appointed under the Act. Power to decide whether any person is covered or not is with the Commissioner.

Coverage of Employees :
Persons employed directly or indirectly, on wages, for work in or in connection with the work of an establishment are covered. The coverage is after 3 months or 60 days service whichever is earlier.

Rate of Contribution :
6.25 per cent or 8 percent of basic wage, dearness allowance (inclusive of cash value of any food concession) and retaining allowance (if any) as notified for the industry by the Central Government from time to time. 1.1/6 percent of this is towards family pension scheme.

Total contribution is on pay as above upto Rs. 1600/-- and above that amount as if it is Rs. 1600/-.

Excluded Employees :
1) Member withdrawing his full amount and

2) Employee whose pay at the time of becoming a
    member exceeds two thousand and five hundred per month. Employee once covered
    continues to be covered irrespective of the pay drawn.

Exemption:
Commissioner has powers to determine and grant exemption from all or any provisions of the Ast where 

1) Establishments provide benefits which are not less favourable than those under the Act, and

2) To individual employee seeking exemption from specific provisions.

Members' Rights and Benefits :
1) The amount to the credit of any member is protected against attachment.

2) Payment of contributions takes priority over other debts of  the employer.

3) Employer cannot reduce wages directly or indirectly, by reason of his liability under the Act.

4) The appropriate Government can grant exemption, as stated above.

5) Transfer of account to new employer is in continuity of membership.

6) Recovery of contribution from wages only.

7) Continuation of membership till withdrawal of full amount.

8) Withdrawal advance, as explained below.

Withdrawals :
Non-refundable and subject to the limits laid down , and in accordance with the requirements specified under the scheme framed in 1952.

1) Financing of member's Life Insurance Policies.

2) Purchase acquisition of a dwelling house/site flat or construction of a dwelling house.

3) Allotment of a tenement under subsidised Housing Scheme for industrial workers.

4) Construction of houses under Low Income Group Housing Scheme.

5) Unemployment without any compensation due to lock out. or closure. (Non-refundable for 15 days or
    more upto 6 months after which it is refundable).

6) Illness: hospitalisation, major surgical operation, T. B., leprosy, paralysis, cancer, mental
    derangement, heart. ailment (Employees State Insurance Scheme benefits if not actually available).

7) Marriages or post matriculation education of children.

8) Abnormal conditions such as damage to property due to calamity of exceptional nature e.g.
    floods, earth quakes or riots.

9) Loss of pay due to cut in the supply of electricity to a factory or establishment.

10) Repayment of certain specified loans.

11) For physically handicapped member for purchase of equipment.

Withdrawal in Full :

Two months after the month of last contribution on grounds of (1) death, (2) medical unfitness for service in future, (3) migration, (4) voluntary retirement under the Agreement. (5) retirement on superannuation at the age of 58 years and (6) retrenchment.

Amount of Final Withdrawal :
Member receives his own contribution and interest and employer's contribution and interest as below:

Membership Period
Employer's contribution and interest
Less than three years                          25 per cent
Above 3 years upto 5 years                  50 per cent
Above 5 years upto 10 years                75 per cent
Above 10 years upto 15 years              85 per cent
Above 15 years 100 per cent
Membership period includes total service.

Nomination :
Member is required to declare in prescribed form, nominee for provident fund, family pension, & deposit linked insurance schemes.

Employer's Obligations :
The Act and the schemes require the employer to comply with :
1) Coverage of Employees
2) Payment of contributions
3) Maintainance of registers, records
4) Submission of forms and other particulars
5) Payment of inspection or administrative charges
6) Administration of funds, accounts and audit.

Determination, Inspection, Penalties :
The Act provides for :
1) Determination of money due from employers and its mode of recovery.
2) Inspector and his jurisdiction.
3) penalties on employers for contravention or default.

Benefits under Employees Family Pension Scheme 1971 :
Provisions of regular monthly amount to a person belonging to the family of the member in the case of his death.

   1. Pension
Pay per month                                  Pension
Below Rs. 400/-                     30 per cent of pay
                                             Minimum Rs. 60/-
                                             Maximum Rs. 120/-
Rs. 400/- and above               30 per cent of pay,
                                             Minimum Rs. 120/-
                                             Maximum Rs. 320/-
Requirement :
Membership of this fund for not less than one year and members' age less than 25 years on entrance as a member and not more than 60 years at the time of death.

Enhanced Rate :
Where an employee has been a member of this scheme for not less than seven years, the rate of pension is fifty per cent of pay last drawn, subject to a maximum of twice the pension mentioned in the table for a period of seven years from the date of death of a member or till the date on which he would have been 60 years of age, whichever is earlier.

Refund:
Where family pension is not payable members contribution for less than one year period is refunded with interest of 5-12 per cent upto Ist March 1981 and 7.5 per cent thereafter to the family.

Where cessation is after one year of membership before attaining the age of 60 years and for reasons other than death, family pension is related to age at entrance and cessation.

2. Life Insurance Benefit: Rs.2000/- to the family

   Requirement: Membership of this fund commencing at the
   age of less than 25 years. In other cases, benefit is related
   to the age on entrance as a member, with a minimum of
   Rs.60/-

3. Retirement-cum-Withdrawal Benefit: Proportionate to  years
    of contribution. Maximum Rs.9000/- to the member after 40
    years of contribution.

    Requirement: Membership of this benefit for not less than one
    year. Membership ceases after receipt of this benefit. Where
    a member continues his membership, the benefit is related to
    the age at entrance.

4. Supplementary Relief:
    Additional rate and manner to be notified by Central
    Government from time to time.

Benefit Under Employees' Deposit linked Insurance Scheme 1976.
On death of a member, an amount equal to the average balance in the account during the previous three years, not exceeding Rs.10000/-. Average not below Rs.1000/- at any time during the previous three years or during the period of membership, whichever is less. 



 
THE EMPLOYEES STATE INSURANCE ACT, 1948

This Act deals exhaustively with the establishment of a Corporation to administer the scheme, methods of managing the finances and procedures regarding adjudication of disputes and claims. In this summary, only main provisions including those in the regulations of the Corporation have been dealt with.

Objective: To provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provisions for certain incidental matters.

Coverage: All factories employing 10 to 19 persons and those not using power and employing 20 or more. The provisions have also been extended to new classes of establishments, shops, hotels, restaurants, cinemas, theatres; motor transport, building construction and newspaper establishments employing 20 or more persons. It covers all employees manual, clerical, supervisory and covers administrative staff and branches of an establishment. The employees covered are only those whose remuneration does not exceed Rs. 1600/- per month.

Wages: Wages for the purpose of this Act means 'all remuneration paid or payable in cash and includes payment for authorised leave, lock-out, strike which is not illegal, layoff and other additional remuneration paid at intervals not exceeding two months e.g. House Rent Allowance, incentive for attendance or production.

Contributions: The contributions of employees and employers are 2.25% and 5% respectively of the
                       wages.

The benefits provided under the Scheme are :-
a. Sickness and extended sickness benefit,
b. Maternity Benefit,
c. Disablement Benefit,
d. Dependent's Benefit,
e. Funeral Benefit and
f.  Medical Benefit

A. Sickness and extended sickness benefit: An insured employee is entitled to sickness cash benefit if from commencement of first Benefit Period, atleast half the number of days is paid during the corresponding contribution period. These benefits are payable at the rate of that average pay of maximum of 91 days during consecutive two benefit periods.

An employee who has put in two years' continuos service preceding the commencement of the spell of a serious illness (Tuberculosis, Cancer, Leprosy, Fracture, Cataract; any other moroid condition, reaction of modern drugs etc.) is entitled to extended sickness benefit. This benefit is available for a maximum of 309 days at a rate benefit is available for a maximum of 309 days at a rate 25% more than standard sickness benefit rate.

B. Maternity Benefit:
An insured female employee is entitled to maternity as under:
Confinement - 84 days (12 weeks) - at double the standard benefit rate.
Miscarriage - 42 days (6 weeks)
Sickness arising out of maternity - 30 days

Note: Certificate is to be submitted to the local office in Form 21 and 23 (along with birth certificate of the child) issued by the Insurance Medical Practitioner.

C. Disablement Benefit:
Temporary disablement: Free Medical treatment and cash benefit at 70% wages as the disablement lasts, provided the disablement should not be less than 3 days including the date of accident.

Permanent disablement: For total disablement, life pension at full rate i.e. 70% of his wage, in the case of partial disablement, proportionate pension will be given. At the option of the beneficiary, the permanent disablement pension can be computed to a lump sum payment while a acting in breach of regulations while travelling in employer's transport or while meeting emergency.

D. Dependents' Benefit:
In the case of insured employee's death arising out of an accident or occupational disease, the dependent will get pension at the rate of 40% more than the standard benefit rate periodically. In the case of widow, it is available for her life time of until she remarries. To sons and unmarried daughters, upto age of 18.

E. Funeral Benefit.
In the case of an insured employee dying, a sum of Rs.100/- is paid to the eldest surviving member of the family or the person who incurs the expenditure for funeral rites.

F. Medical Benefit:
This refers to medical attendance and treatment of the insured person and his family members i.e. wife/husband, children upto 18 years and dependent parents. These benefits are classified as:

i. Restricted Medical Care: Out patient medical care at dispensaries or panel clinics
ii. Expand Medical Care: Consultation with specialist and supply of special medicines and drugs as
    may be prescribed by them and facilities for special laboratory and X-ray examination.
iii. Hospitalisation facilities, service of specialists, drugs and diet as required.

Note: The insured employee has to register himself and his family with an authorised insurance medical
          practitioner for this purpose.

Confinement charges :
An insured employee is paid As. 30/- for the confinement of his wife (not an insured employee) if delivery takes place in a municipal or private hospital or at house and not in any ESI Hospital.

General conditions for availing benefits :
In order to obtain the benefits, the insured employee should (a) register this name on the panel of an Insurance Medical Practitioner (b) obtain and send the regulation certificate from the Insurance Medical Practitioner and submit it to the local office immediately i.e. within three days from the date of issue, personally or by post and (c) in case of hospitalisation, submit Hospital's admission and discharge certificate to the local office.

In the case of sickness or disablement benefit (other than the benefit for permanent disablement) the insured employee shall (a) take medical treatment at a dispensary, hospital, clinic or other institution approved under the Act and carry out the instructions given by the medical officer or medical at ten dent (b) refrain from doing anything which might retard or prejudice his chance of recovery (c) stay in the area in which the treatment is provided and leave only with the permission of the medical office or sick visitor and (d) allow himself to be examined by any duly authorised medical officer or sick visitor.

No insured person can combine two or more sets of benefits but choose only one benefit. Any payment made to an insured employee to which he is legally not entitled to must be repaid to the Corporation.

The obligations on the part of employers under the Act are :-
a) insure all employees covered by the Act,
b) furnish returns and other information required under the Act,
c) no reduction of wages etc. by reason only of liability for contributions under the Act except in respect of benefits similar to benefits conferred under the Act,
d) refrain from dismissing, discharging or punishing an insured employee during the period the said
    employee receives any benefits or during period of medical treatment or absence due to certified
    illness.
d) arrange for first aid and medical care and transport of obtaining such aid ant care till the injured
    insured employee is seen by his Insurance Medical Practitioner. 



 
 
THE EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT, 1959.

Objective: To provide for the complusory notification of vacancies to employment exchange. this Act is enacted for the purposes of enabling the appropriate authorities to assess the employment potential in various categories of employment. It is also intended to service as a statistical need to assess any future policy in connection with the imparting of training to potential employees.

Notification: The Act requires the employer in every establishment in public sector to notify the vacancies to Employment Exchanges of the State concerned before filling up any vacancy in any employment in that establishment. The State Government may by notification require the employer in every establishment in private sector to notify vacancies to Employment Exchange. Notification of vacancies is required to be made in a manner prescribed under the Act.

Notification is not necessary in the case of employment in-

a) Agriculture or farm machinery operatives.

b) Domestic service.

c) Employment with duration of less than three months.

d) Unskilled office work, and

e) The staff of Parliament.

Notification is also not necessary when vacancies are proposed to be filled through promotion or by absorption of surplus staff or on the result of examination conducted/interview held by/recommendation of an independent agency such as Public Service Commission.

Vacancies in an employment carrying remuneration of less than Rupees Sixty p. m. too are not required to be notified.

Records/Documents: Prescribed Officer of Government or any person authorised by him in writing has the right of access to relevant record or document in the possession of the employer who is required to furnish any information or returns. Such officer/person may at any reasonable time enter any premises where he believes such record or document to be and inspect or take copies of relevant record/document. He can ask any question necessary for obtaining any information required under this Act.

Penalties: Defaulting employer shall be punishable for the first offence related to notification with fine which may extend to five hundred rupees. For subsequent offence, fine may extend to one thousand rupees. Fine related to offence on Records/Documents and right to entry, extends to two hundred and fifty rupees for the first offence and five hundred rupees for the subsequent offence.

Rules: they are framed by the Central/State Government under the Employment Exchange (Compulsory Notification of Vacancies) Rules 1960 and provide for details on requirements such as form and manner of notification of vacancies. 



 
EQUAL REMUNERATION ACT, 1976.

Objective: To provide for the payment of equal remuneration to men and women workers and for the prevention of discrimination, on the ground of sex, against women in the matter of employment and for matters connected therewith or incidental thereto.

Applicability: The Act is made applicable to Industries by Government notification viz. wholesale and retail trade, restaurants and hotels, air transport carriers, real estate and business services and legal services, community, social and personal services. The provisions of this Act have overriding effects over any other law or the terms of any award agreement or contract of service, instrument having effect under any law.

Duty regarding payment: It is the duty of employer to pay equal remuneration to men and women for same work or work of a similar nature. Payment may be in cash or kind. Besides, employer cannot reduce the rate of remuneration of any worker to make the payment look equal, higher rate being payable to both the male and women workers.

Duty regarding Recruitment: It is the duty of employer not to make any discrimination while recruiting men and women workers for the same work or work of similar nature. Exception is employment of women where it is prohibited or restricted by or under any law in force. Priority or reservation for scheduled castes or category of persons shall not be affected.

Government has powers under the Act to appoint authorities for hearing and deciding claims and complaints. The Act also lays down the provisions in respect of the duty of employers to maintain registers etc. Offences by Companies, cognisance and trial of offences, Power to make rules etc.

Inspector carries powers to enter any building, premises, factory or vessel, require employer to produce register etc.,  take on the spot evidence of any person, examination of any person specified, make copies/takes extracts etc.

Penalty: Defaulting employer can be fined upto five thousand rupees. Metropolitan Magistrate or Judicial Magistrate of the First Class is the Trial Court for Congnizance of offence.
 



 
  THE EMPLOYMENT OF CHILDREN ACT, 1938.

The Act was enacted to regulate the employment of children in a certain industrial establishments and was amended by The Employment of Children (Amendment) Act, 1978.

Prohibition of employment: This act prohibits employment or permission to work in any specified occupation of a child who has not completed fifteen years.
Occupations specified are those -

1. connected with the transport of passengers, goods or mail by railway and other occupations in railway premises such as Cinder-picking or clearing of an ash pit or building operation, in catering establishments at a railway station or in occupation relating to construction of a railway station or any other work with close proximity to the railway lines.

2. connected with a port authority within the limits of any port.

3. building and construction industry.

Permission to work: No child who has completed fifteen years of age but not completed seventeen years of age shall be employed or permitted to work in any of the above occupations unless the periods of work of such child allow an interval of rest for at least 12 consequitive hours, inclusive of minimum of such seven consequitive hours, between 10 p. m .to 7 a. m. as may be prescribed. These provisions are not applicable to any child employed or permitted to work either as an apprentice or for the purpose of receiving training.

The competent authority may in an emergency or in public interest, by a notification in the official gazette, declare the above provision to be non-operative for a specified period.

Further prohibition: No child who has not. complet.ed fourteen years of age shall be employed or permitted to work in any workshop, as defined under the Act, wherein any of the processes set. forth In the schedule to the Act is carried on.

This provision is not applicable to any workshop wherein any process is carried on by the occupier with the aid of his family only and without employing hired labour or to any school established by, or receiving assistance or recognition from a State Government. The State Government can, after not less than three months notice in official gazette, amend the schedule.

Notice: The Act requires the occupier to notify the Inspector before carrying on work in the workshop. The notice should contain t.he specified information.

Dispute as to Age: In the absence of a certificate by a medical authority, the dispute regarding age shall be referred by the Inspector t.o the Medical Inspector for decision.

Register/Notice: Employer is required to maintain the
prescribed register and to notify an Abstract of the Act conspicuously on the notice Board.

Penalty : Defaulting employer/person shall be punishable with simple imprisonment upto one month or with fine upto five hundred rupees or both.

Prosecution: With the previous sanction of Inspector prosecution can be instituted in the Court of presidency Magistrate or Magistrate of the First Class.

Powers to make rules: The competent Authority is autho- rised to notify rules relating to the specified matters.

The Employment of Children (Railway) Rules 1955 and The Employment of Children (Major Ports) Rules 1950 relate to the above stated provisions. 



 
HIGHLIGHTS OF LAWS RELATING TO CHILD LABOUR IN INDIA
FACTORIES ACT, 1948

1. Prohibits employment of a child below 14 year in any factory.

2. To safeguard the health of young persons above 14 years of age and below 18 years there are
    restrictions on their employment.

a) They are required to obtain a certificate of fitness from certifying surgeon.

b) Initial and periodical examination (at intervals "If not less than twelve months) of young persons by
    certifying surgeons.

3) Restrictions in the matter of working hours.

   Between Age Group of 14           -Not to be employed
   years and below 17 years.           at night

   Children between age                 -Not more than 4.5
   group 14 and 15.                         hours in any day.

4) A young person between the age group of 15 years and 18 years is considered to be an adult for
   purposes of other provision of Factories Act, provided he has a certificate from Certifying Surgeon that
   he is fit for a full day's work in Factory.

5) a young person shall not work on any dangerous machine unless he has been fully instructed as to
    the dangers thereof and the precautions to be observed.

He must get sufficient training in work at machine under adequate supervision.

6) no young person shall be employed to carry out any mounting or shipping of belts and lubrication,
    etc. of certain machines.

7) prohibition on the employment of child for pressing cotton in which a cotton-opener is at work.

8) the Act provides for creches for the use of children under 6 years of age to those factories employing
    50 or more women workers. 


HIGHLIGHTS OF THE LEGAL PROVISIONS FOR PROTECTION
AND WELFARE OF WOMEN WORKERS

Factories Act, 1948

1) No night shift for women - Special government permission necessary of exemption from this provision.
    Hours of work 6 a.m. to 7 p.m.

ii) Prohibition on employment of women in dangerous operations. Prohibition on employment of women
   for pressing cotton in any factory where cotton opener is at work.

iii) Restrictions on carrying alone or moving by hand alone, a load exceeding 30 Kgms (Adult female) or
    20 Kgms (adolescent female).

iv) Separate latrines & urinals to be provided by employer for the use of women.

v) Separate washing places to be provided for women.

vi) If the number of women employees exceeds 30, creche for children below 6 years to be provided by
    the employer. Milk and other nourishments to be provided to the children in the creche. Mothers to be
    granted free time of 15 minutes twice in a shift to feed their babies.

Mines Act, 1952

i) No night shift. for women.

ii) Prohibition on employment of women under ground or in any dangerous occupations.

iii) Separate latrines and urinals to be provided by the employer for the use of women.

iv) Separate bathing places with shower baths and locker rooms, to be provided for women at or near
    the pit heads.

v) Any mine in which women are employed must provide a creche.

Plantation Labour Act, 1951

i) No night work for women.

ii) Separate latrines & urinals to be provided for women. iii) If the number of women employees exceeds
    30, creche for children below 6 years to be provided by the employer.

Indian Merchants Shipping Act, 1958
Recruitment of women except as nurses, prohibited on board sea-going ships.

Maternity Benefit Act, 1961
i) Act applies to every factory, mine or plantation where Employees State Insurance Act, 1948 does not
   apply.

ii) Leave with full pay to be given to a pregnant woman 6 weeks before the delivery and 6 weeks after the
   delivery provided the woman has worked in the establishment for at least 160 days in the 12 months
   preceding her expected date of delivery. One more month of paid leave in case of illness following
   delivery.

iii) No deduction in the wages of a pregnant woman permitted even if there is a change in the nature of
    her work.

iv) No ardous work, or work which requires long hours of standing to be given to pregnant woman.

v) Woman not to be employed during six weeks immediately after her delivery or miscarriage.

vi) Medical bonus of Rs. 25 to be paid to woman eligible for maternity benefit.

vii) No employer can dismiss or dischange a woman from work on the ground of absence from work due
     to pregnancy.

Employees State Insurance Act, 1948
Maternity Benefit :

i) Benefit (roughly equivalent to full wages) to be paid 12 weeks -6 weeks before and 6 weeks after
   confinement.

ii) Benefit to be paid for 6 weeks in case of miscarriage, following the date of miscarriage.

iii) Benefit to be paid for an additional period of 1 month in case of illness arising out of delivery or
    miscarriage.

Equal Remuneration Act, 1976

i) An employer must pay equal remuneration to men and women for the same work or for the work of
   similar nature.

ii) No employer shall reduce the rate or remuneration of any worker in order to comply with the above
   provision.

iii) On or after the commencement of this act, no employer shall make discrimination against women
    while making recruitment.

I. L. O .Conventions Pertaining to Women Workers

   No.            Convention

 1)    3     Maternity Protection Convention 1919
 2)    4     Night work (Women) Convention 1919*
 3)   13    White lead (painting) Convention 1921
 4)   41    Night work (Women) Convention (revised) 1934*
 5)   45    Underground work (Women) Convention 1935*
 6)   81    Labour Inspection Convention 1947*
 7)   89    Night Work (Women) Convention (revised) 1948*
 8) 100    Equal remuneration Convention 1951 *
 9) 102    Social Security minimum standards Convention 1952
10) 103   Maternity Protection Convention (revised) 1952
11) 110   Conditions of Employment & Plantation
              Workers Convention 1958
12) 111   Discrimination in respect of employment &
              Occupations Convention 1958*
13) 115   Radiation Protection Convention, 1960
14) 117   Social Policy (Basic Aims and Standards) Convention 1962
15) 122   Employment Policy Convention 1964
16) 127   Maximum permissible weight to be carried by one
              worker Convention 1967
17) 129   Labour Inspection in Agriculture Convention 1969
18) 136   Protection against Hazards of poisoning arising from Benzene 1971
19) 149   Nursing Personnel Convention 1977

* -Conventions ratified by India. 



 
 
THE MATERNITY BENEFIT ACT, 1962

Objective: To regulate the employment of women in certain establishments for certain periods and after child birth and to provide for maternity benefit and certain other benefits.

Applicability: The Act applies to every establishment being a factory , mine or plantation and every establishment employing persons for the exhibition of equestrain acrobatic and other performance. State Government, with the approval of the Central Government and after giving notice of not less than 2 months notify applicability to any other establishment, industrial, commercial, agricultural or otherwise.

Benefits under the Act are not payable in addition to the benefits under the Employees' State Insurance Act.

Prohibition of Employment/Work:
1. No employer shall knowingly employ, directly or indirectly, a woman in any establishment and no woman can be on work during the six weeks immediately following the day of her delivery or miscarriage.

2. No pregnant woman shall, on her request, be required to do any work which is of an ardous nature or which involves long hours of standing, or which is likely to interfere with her pregnancy or the normal development of the foetus or is likely to cause her miscarriage or otherwise to adversly affect her health.

The restriction is for the period of one month immediately preceeding the period of six weeks before the date of her expected delivery and any period during the six weeks for which the pregnant woman does not avail of leave of absence.

Right to Payment: Every woman is entitled to and her employer is liable for payment of maternity benefit at the rate of the average daily wage for the period of actual absence immediately preceeding and including the day of her delivery and for the six weeks immediately following that day.

Wages: All remuneration paid or payable in cash by the terms of the employment, express or implied, and includes cash allowances such as dearness and house rent, incentive bonus and the money value of the concessional supply of food grains and other articles. Wages exclude any other bonus, overtime earning and payment/deduction on account of fines. Provident/Pension fund contribution and Gratuity on termination are also not included.

Rate of Payment is the average daily wages for three calendar months immediately proceeding the date from which she absents herself on account of maternity, or one rupee a day, whichever is higher.

Eligibility: Maternity benefit to a woman after she has actually worked in an establishment of the concerned employer for a period of not less than one hundred and sixty days in the 12 months immediately precedding the date of her expected delivery. Days of work include days of layoff.

Maximum period: A woman is entitled to benefit for 12 weeks-six weeks upto and including the day of her delivery and six weeks immediately following that day.

Where a woman dies during this period, payment is to be made only for the days upto and including the day of death. In case of delivery of child before death, employer has to pay for the entire period of six weeks immediately after the day of delivery. In case the child also dies during the said period, payment upto and inclusive of the day of the death of the child.

Notice: A woman entitled to the benefit is required to notify the employer regarding the period of absence and name of the person to whom payment should be made on her behalf if so desired by her and that she shall not work in any establishment during the period for which she receives maternity benefit. The Maternity benefit is payable by employer even on the failure of woman to notify.

Time for Payment: Payment is to be made in advance for the period preceeding the day of expected delivery, on production of prescribed medical proof of pregnancy and for the subsequent period within forty-eight hours of the production of prescribed proof of the delivery.

Nominee: Payment of maternity benefit in case of death of a woman is to be made to the person nominated by the woman and in case of no nominee, payment is to be made to her legal representative.

Medical Bonus: Additional amount of rupees 25/- is to be made if no prenatal confinement and post-natal care is provided by the employer free of charge.

Leave of miscarriage: On production of prescribed proof of miscarriage leave with wages at the rate of maternity benefit for a period of six weeks immediately following the day of miscarriage shall be granted.

Leave for illness : If delivery, premature birth of child or miscarriage arises out of pregnancy, additional absence of leave with wages for a maximum period of one month shall be granted on production of prescribed proof.

Nursing Breaks: Every woman who has delivered a child and who is on duty after delivery, shall be allowed additional two breaks of the prescribed duration for nursing the child until the child attains the age of fifteen months.

Dismissal: Employer is prohibited from dismissing or discharging a woman during absence on account of pregnancy. Notice for dismissal or discharge is also prohibited. Conditions of service cannot be altered to her disadvantage, during such absence. Maternity benefit or medical bonus or both can be deprived only for dismissal for any prescribed gross misconduct.

Appeal: On dismissal and deprivation of benefit, woman can appeal to the prescribed authority whose decision is final.

Non-Deduction of wages: Normal and usual daily wages of a woman entitled to maternity benefit are to be continued by the employer. There can be no deduction of wages by reason of nature of work assigned and breaks if allowed for nursing the child.

Inspection: Inspectors appointed by the appropriate Government carry the powers and duties to enter at all reasonable times with such authorised assistants, if any, premises/place where women are employed or work is given, for the purpose of examining registers, records, notices required to be kept/exhibited and require their production for inspection. Inspectors can also examine persons and require employer to provide information regarding persons employed, their applications/payments etc. Inspectors can take copies of documents.

Inspector on his own and/or on a complaint from a woman, can direct the employer to make the due payment to the woman concerned. Appeal against his decision can be made within 30 days of the decision to the prescribed authority whose decision will be final.

Recovery: Amount payable shall be recoverable as arrears of land revenue.

For failure: If a woman works, in any establishment, after she has been permitted to absent herself, for any period during such authorised absence, her claim on maternity benefit stands forfeited for such period.

Exhibition/Registers : Employer is required to exhibit in conspicuous places an Abstract of the Act and the rules made thereunder in the language/s of the locality. Preparation and maintainance of registers, records, muster rolls in the prescribed manner is also obligatory.

Penalty: Defaulting employer can be punished with imprisonment upto three months or with fine upto Rs. 500/- or both. In addition, the court can also order recovery of the amounts of benefits payable. Obstruction to Inspectors can also be subjected to similar penalty.

Cognizance of offences: Prosecution 'can be instituted within one year from the date on which offence is alleged to have been committed. Time taken for obtaining sanction from the Inspector is excluded from the one year period. Trial of offences is by a Presidency Magistrate or Magistrate of First Class.

Government Powers: Central and State Governments also have powers to give direction, exempt establishments and make rules. 



 
THE PAYMENT OF GRATUITY ACT, 1972
 

The Objective:
The provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oil fields, plantations, ports, railway companies, shops or other establishments.

Coverage:
Every factory, mine oil field, plantation, port or railway company and every shop or establishment within the meaning of any law in which ten or more persons are employed or were employed on any day of the preceding twelve months is covered by this Act.

Exemption:
The appropriate Government has powers to grant exemption to any establishment, factory etc. wherein the employees received gratuity or pensionary benefits not less favourable than under this Act.

Important definitions:
"Continuous Service" means uninterrupted service and includes services which is interrupted by sickness, accident leave, lay off, or cessation of work not due to any fault of the employee concerned, whether such interrupted or uninterrupted services was rendered before or after the commencement of this Act.

N.B. Period of service prior to 16-09-1972 on which ate the Act came into forces is also considered for payment of Gratuity.

An employee who is not in uninterrupted service for one year, is deemed to be in continous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than 240 days. In case of employee employed below the ground in a mine, the required number of days is 190.

"Controlling Authority" means an authority appointed by the appropriate Government for the administration of this Act.

"Employee" means any person (other than an apprentice) employed on wages, not exceeding one thousand and six hundred rupees per month in any establishment, factory or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and includes any such person who is employed in a managerial, administrative capacity. However one who holds a civil post under Government is excluded. In the case of an employee who, having been employed for a period of not less than five years on wages not exceeding one thousand and six hundred rupee per mensem, is employed at any time thereafter on wages exceeding one thousand and six hundred rupees per mensem, gratuity, in respect of the period during which such employee was employed on wages not exceeding one thousand and six hundred per month, shall be determined on the basis of the wages received by him during that perIod.

"Retirement" means termination of the services of an employee otherwise than on superannuation.

"Superannuation" means the attainment by the employee the age on which he shall vacate the employment by conditions of service and in any other case, the attainment by the employee of the age of fifty-eight years.

"Wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.

Payment :
Gratuity is payable to an employee on his termination of service after continuous service for not less than five years, on wages not exceeding Rupees One Thousand  & Six Hundred on  superannuation, retirement, or resignation or death or disablement due to accident or disease. Completion of continuous service of five years is not necessary where the termination is due to death or disablement.
N .B. Employee not resigning but being treated as having voluntarily abondoned the services of his own accord is also entitled to payment.

Rate of Payment :
For every completed year of service or part thereof in excess of six months, the payment of gratuity is at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned.

N.B. Wages drawn for the last month of service to be divided by 26 and then that amount is to be multiplied by 15.

 In case of piece-rated employee, wages to be computed on the average of the total wages for a period of three months immediately preceding. For an employee employed in a seasonal establisnment, the payment is at the rate of seven days wages for each season.

The amount of gratuity payable shall not  twenty months' wages.

N. B. Twenty months means 600 days.
When an employee is employed after disablement on reduced wages, his wages for the period prceding his disablement shall be taken to be the wages received during that period and wages for the period subsequent to disablement shall be the reduced wages.

Better Terms :
Right of an employee to receive better terms of gratuity under any award or agreement or contract is not affected by this Act.

Forfeiture:
When services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of property belonging to the employer, gratuity amount is forfeited to the extent of the damage or loss so caused Gratuity is forfeited fully if the services are terminated for riotous or disorderly conduct or any other act of violence or for any act which constitutes an offence involving moral turpitude provided that such offence is committed in the course of employment.

Nomination:
An employee can in the prescribed manner/form distribute the amount payable to him amongst more than one nominee, nomination being in favour of member/s of the family.

Determination of the amount:
An employee who is eligible to receive the gratuity amount or his authorised person shall send his written application to employer within specified time and prescribed manner. As soon as gratuity becomes payable, the employer shall determine the amount and notify the person to whom gratuity is payable as also the controlling Authority.

Dispute:
In case of a dispute, the amount admitted by the employer shall be deposited with the Controlling Authority which will determine the amount payable after hearing the parties to the dispute.

Recovery of Gratuity:
On the failure of employer to make the payment the Controlling Authority shall issue a certificate to collector who shall recover the amount together with compound interest @ of 9% p.a as arears of land revenue pay the amount to the person concerned.

Protection of Gratuity:
No Gratuity shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court. 



 
 
Payment of Wages Act, 1936
 

This is one of the earlier Labour Laws passed during British Rule and came into force on 28th March 1937.

Objective: To regulate payment of wages to persons employed directly or indirectly in Industry. Specifically, it applies to employees drawing a wage of upto Rs. 1600/- on an average per month and employed in (1) Factories, (2) Transport Service of all kinds, (3) Mines, (4) Plantations and
(5) Construction industry. The central and state Governments are empowered to bring any other
industry or establishment under coverage after giving 3 months notice of their intention to do so.

Authority: The State Government, except in the case of central Government. undertakings spread in more than one State. However, Rule making powers are vested in the State Government. Each State Government will have its
own Rules.

Wages: ' wages ' cover all payments made to an employee including all allowances or those in kind capable of being expressed in terms of money but does not include, (a) Bonus, (b) House Rent, (c) contribution to Provident Fund or Pension Fund of the employee, (d) Travelling allowance, (e) Gratuity and (f) Special expenses. Wages can be paid by cheques or credited to the bank accounts of the employees with the consent of the employees. Employer is hefd responsible for the payment of wages to persons employed.

Wage Period: Any period fixed by the employer not exceeding one month.

Time of Payment of Wages: Wages are to be paid to the employees after the expiry of the wage period.

(a) before the expiry of seventh day in establishments employing less than 1000 persons and

(b) before the expiry of tenth day in establishments employing 1000 & more persons.

In the case of employees whose services are terminated by the employer, wages must be paid before the expiry of the second working day from the day on which the employment is terminated.

Permissible Deductions from the wages :
(a) fines, (b) deduction for absence of duty, (c) reimbursement of loss caused by the employee for damage etc., (d) house accommodation, (e) cost of amenities provided, (f) advances and interest thereon, (g) loans granted from any welfare fund, house building or other purposes approved by the State Government, (h) income tax, (i) deductions as per court orders or decrees, (j) payment to co-operative societies, (k) Life Insurance Corpn. policy premium, (I) purchase of Government securities, (m) fidelity guarantee bonds insurance premium. (n) Contribution to Prime Minister's National Relief Fund or other Funds specified, notified by Central Government. (0) contribution to union fund.

Total amount Of deductions not to exceed Seventy Five per cent of wages where deductions are made for payments to co-operative societies and not to exceed Fifty per cent in other cases.

Deduction for loss: The deduction shall not exceed actual amount of loss or damage. However, it can be made only after the employed person has been given an opportunity of showing cause against deduction.

Deduction for service rendered: In the case of house accommodation or other amenities, the accommodation or amenities must have been accepted by the employee.

Co-operative Societies and Insurance Schemes: Deductions will be subject to the Rules made by the State Government.

Procedure: Claims arising out of wrongful deductions or delay in payments are to be made to the appropriate Labour Court or Tribunal authorised by the State Government. Normally, there is a special court designated as the Authority Under Payment of Wages Act'. The claim must be made in appropriate form and according to the procedure laid down in the Rules framed by the State Governments.

Appeal: Appeal against the order of the Authority can be filed before the Court of Small Causes or a District Court.

Display: Abstracts of the Act and the rules must be displayed by the employer in English or a language understood by majority of the employees in the factory or establishment premises.



 
 THE SALES PROMOTION EMPLOYEES
      (CONDITIONS  OF SERVICE) ACT, 1976.
Objective: To regulate certain conditions of service of sales promotion employees in certain
establishments.

Applicability: Every establishment engaged in pharmaceutical industry and in other notified industries.

Coverage: Employee drawing

1. Wages not exceeding Rs. 1,600/- per month.

2. Commission not exceeding Rs. 19,200/- per annum.

Persons employed/engaged mainly in a managerial or administrative capacity are not covered under the Act.

Leave :
1 .Earned leave on full wages for not less than one
eleventh of the period spent on duty.

2. Leave on medical certificate on one half of the wages for not less than one-eighteenth of the period of service.

Appointment letter: Every employer is required to furnish to every employee a letter of appointment in the prescribed form.

Applicability of other Acts :
Sales Promotion employees are also covered automatically under the following Acts.

1 .Workmen's Compensation Act.
2. Maternity Benefit Act.
3. Minimum Wages Act.
4. Maternity Benefit Act.
5. Payment of Bonus Act.
6. Payment of Gratuity Act.
7. Industrial Employment (Standing orders) Act.

Registers/Inspection: Every employer is required to maintain prescribed registers/documents which are open to inspection by the notified inspectors who can also at any reasonable time enter the establishment/premises and require production of registers/documents for examination. Inspectors also carry the right of examination of relevant persons and making copies of register/documents.

Penalty: Defaulting employer is liable to a fine upto Rs.100/- on cognizance of offence by Court not interior to that of Metropolitan Magistrate or Magistrate of First Class. Offence can not be taken cognizance of after six months of the date on which the offence is alleged to have been committed.

Rules: These are framed under the Sales Promotion Employees (Conditions of Service) Rules, 1976 and provide for details of requirements on Holidays, Leave wages, weekly day of rest, letter of appointment, registers and other documents. 



 
 
THE TRADE UNION ACT, 1926

The definition of the term `trade union' cover not only and is one of the earlier labour laws which has been registered so far without major amendments.

Objective: To provide of the registration of trade union and in certain respects, to define the law relating to registered trade union.

Powers: All powers under the Act are vested in the Trade Union Registrars appointed by the various State Governments.

The definition of the term `trade union' covers not only unions of workers, but also of employers.

Registration: Any seven or more members of a trade union can apply for registration to the Registrar of Trade Unions in the prescribed form containing the names, occupations and addresses of the members making the application, name and address of the union and name, age, occupation and address of each of the office-bearers. The rules of the trade union are also to be attached to the application. They must provide for :-

(a) The rate of membership subscription-with a minimum of 25 paise per month.

(b) procedure regarding amendments.

(c) mode of appointment of office-bearers with the condition that 50% or more of the office-bearers shall be persons employed in the concerned industry. Office- bearers must be over 18 years of age and should not have been convicted by court for offence involving moral trupitude, and

(d) provision of proper management of finance and audit of accounts.

A trade union is deemed to be registered only on the basis of registration certificate issued by the Registrar of Trade Unions.

Cancellation: The registration can be withdrawn by the union applying for it or can be cancelled by the Registrar on his satisfaction of reasons such as the registration having been obtained by the union by fraud or unfair means

Appeal : A union whose registration has been denied or cancelled by the Registrar is allowed to appeal over the said order of the Registrar.

Utillsation of Funds: The funds of a trade union can be utilised only for (a) payment of salaries;
(b) administrative expenses;  (c) legal proceedings and conduct of disputes on behalf of its members; (d) compensation to members for loss arising out of trade disputes; (e) allowances to members such as death benefit, sickness benefit, unemployment relief. pension or accident benefit; (f) educational, social and religious benefits; (g) running of a journal; (h) and payment in furtherance of the union's objects, subject to a maximum of 25% of the gross income.

Political Fund: A trade union may create a political fund for political purposes, but contributions to such a fund must be entirely voluntary and no member can be compelled to subscribe to it.

Immunity: Total immunity against prosecution for criminal conspiracy and civil suits is given to office-bearers and trade unions for actions that are deemed necessary for furtherance of industrial disputes.

Amalgamation: Any two or more registered trade unions can be amalgamated on the basis of ballot in the general meetings of the respective 'unions with 600% of the votes recorded being in favour of the merger.

Dissolution: Notice signed by seven members and by the Secretary has to be filed within fourteen days of the dissolution, to the Registrar under the Act.

Returns: Trade unions are required to send annually, a return in the prescribed form together with particulars of audited accounts for the year ending 31st December.

Penalties: The Act provides for penalties and procedure relating to failure to submit returns and supplying false information.

Various forms are included in the rules framed under this Act by the various state Governments and they may be referred to by the trade unions before filing application for registration and annual returns.


THE ESSENTIAL SERVICES MAINTENANCE ACT, 1981

Objective: The Act provides for maintenance of certain essential services and normal life of the
community. The Act is effective from 23rd September 1981.

Essential Services:
1. Postal, telegraph or telephone including any service connected therewith.

2. Railway or any transport for the carriage of persons or goods by air or any other transport for the
    carriage of passangers or goods by land or water with respect to which Parliament has powers to
    make laws.

3. services connected with the operation of maintenance of aerodromes, or with the operations, repair
    or maintenance of aircraft, or in the International Airports Authority of India.

4. in connection with the working of any major port, including any service connected with the loading,
    unloading, movement or storage of goods in any such port.

5. connected with the clearance of goods or passengers through the customs or with the prevention of
    smuggling.

6. in any establishment of, or connected with the armed forces of the Union or in any other
    establishments or installations connected with defence.

7. in any establishment or undertaking dealing with the production of goods required for any purpose
    connected with defence.

8. in any section of any industrial undertaking pertaining to a scheduled industry on the working of which
    the safety of such undertaking or the employees employed therein depends.

Industrial undertaking and scheduled Industry have the meaning as in the Industries (Development and Regulation) Act, 1951.

9. in, or in connection with the working of any undertaking owned or controlled by the Central
    Government being an undertaking engaged in the purchase, procurement, storage, supply or
    distribution of food grains.

10. in or connected with the working of, any system of public conservancy, sanitation or water supply,
     hospitals or dispensanes, in any Union teritorry, cantonment area or undertaking owned or controlled
     by he Central Government.

11. establishment or undertaking dealing with the production supply or distribution of coal, power, steel
      or fertilizers.

12. Oil field or refinery or establishment undertaking dealing with the production, supply or distribution of
      petroleum and petroleum products.

13. Mint or security press.

14. connected with elections to Parliament or to the Legislatures of the States.

15. connected with the affairs of the Union, not being a service specified as above.

16. connected with matter with respect to which Parliament has power to make laws and which the
     Central Government being of opinion that strikes therein would prejudicially affect the maintainance
     of any public utility service, the public safety or the maintainance of supplies and services
     necessary for the life of the community or would result in the infliction of grave hardship on the
     community, may by notification in the official Gazette declare to be an essential service for the
     purposes of this Act.

Important: It is important to note that strike has been given a detailed meaning under this Act. Cessation of work, refusal to work overtime where such work is necessary for the maintenance of any essential service, conduct likely to result in cessation or substantial retardation of work in any essential service amount to strike under this Act.

The Act further adds that the specified definitions under the Industrial Disputes Act 1947 are material.

Notification referred to above is required to the laid before each house of Parliament immediately after it is made, if it is in session and on the first day of the commencement of the next session of the house if not in session. Notification ceases to operate at the expiration of forty days from the date of its being so laid or from the re-assembly of Parliment unless approved by resolution by both houses of Parliament.

Other important provisions
    Prohibition of strikes,
    Dismissal of employee.
    Penalty for illegal strikes.
    Penalty for instigation etc.
    Penalty for giving financial aid to illegal strikes.
    Prohibition of lockout.
    Prohibition of layoff.
    Arrest without Warrant.
    Summary trial of offence.
    Overriding of other laws.

All these provisions of the Act categorically specify the powers of the Central Government to pass general or special order, at its satisfaction of necessity in public interest. Prohibition by the Central Government for a period not exceeding six months which can be extended, liability for disciplinary action, punishment with imprisonment for terms upto six months or one year and/or fines upto Rupees two thousand also specified with some important details.

It is important to note that power to arrest without warrant is, not withstanding Code of Criminal Procedure, 1973, conferred on any Police Officer and summary trial is, also not withstanding the same code, by any Metropolitan Magistrate or any Judicial Magistrate of the First Class specially empowered by the State Government Act. Acts such as Industrial Dispute Act 1947 are clearly over ridden. 


THE INTER-STATE MIGRANT WORKMAN (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT 1979.

Objective: this Act also is to regulate the employment of workmen, specifically of inter-state migrant workmen. The provisions of the Act are to provide for their conditions of service and for matters connected therewith.

Applicability: The Act extends to the whole of India and applies to every establishment in which (important to note as differing from some other labour laws), five or more inter-state migrant workmen are employed or who were employed on any day of the preceding twelvemonths. These inter-state migrant workmen are not in addition to other workmen.

"Establishment" has a wider meaning. (See also 'Principal Employer'.). Every contractor employing such workmen is covered.

Definitions: Important definitions are -

Contractor: In relation to an establishment, means a person who undertakes (whether as an independent contractor, agent, employee or otherwise) to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment. It can be noted that as in the Contract Labour Act, mere supply of goods or articles does not make one a contractor, Further, contractor is free to employ workmen for the purpose or to supply workmen to the establishment. Also, again as in The Contract Labour Act Contractor includes a Sub-Contractor and Khatedar, Sardar, Agent or any other person by whatever name called. Sub-contracting being common, the Act provides for its coverage specifically those also being the persons who recruit or employ
inter-state migrant workmen.

Inter-State Migrant Workman: means any person who is recruited by or through a contractor in one State under an agreement or other arrangement for employment in an establishment in another State, whether with or without the knowledge of the principal employer in such establishment.

It is important to note that a migrant workman is 'recruited in one state for employment in another. state". Also as In The Contract Labour Act what counts is such recruitment and employment. Knowledge or absence of it on the part of principal employer is not a decisive point.

Principal Employer: (See 'Applicability') refers to Head of the offices, department or authority or other specified officer and to the owner or occupier and manager under the Factories Act, 1948 and to the owner or agent and the named Manager in relation to a mine and to any person responsible for the supervision and control in relation to any other establishment.

Wages: This has meaning as per The Payment of Wages Act 1936. All remuneration (whether by way of salary, allowance or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, The Payment of Wages Act also specifically includes any remuneration payable under any award or Settlement or order or a Court as to which the person employed is entitled in respect of over time or holidays or any leave period, any additional remuneration payable under the terms of employment (whether called a bonus or by other name).

4. Any sum which by reason of termination of employment of the person employed is payable under any
    law, contract or instrument which provides for the payment of such sum, whether with or without
    deductions but does not provide for the time within which the payment is to be made.

5. any sum to which the person employed is entitled under any scheme framed under any law for the
    time being in force.

The definition under The Payment of Wages Act incorporated in this Act, is very wide and all inclusive, save the specific exclusion of (1) Bonus (2) value of house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government (3) Employers' contribution to pension or provident fund and the interest accrued thereon (4) Travelling allowance or the value of travelling allowance (5) Defrayment of special expenses of the employed person, to which he is entitled and (6) Gratuity.

Workman: means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or unskilled manual, supervisory, technical or electrical work for hire or reward, whether the terms of employment be express or implied.

As in the Contract Labour Act and The Industrial Disputes Act, specifically excluded are persons employed in 1) mainly managerial or administrative capacity 2) supervisory capacity, drawing wages exceeding Five hundred rupees per mensem, or exercises, either by the nature of the duties attached to the offices or by reason of the powers vested in him, functions mainly of a managerial nature. Important to note that as per The Industrial Disputes Act amendment w.e.f. 18-8-1984, Supervisory capacity person is excluded on drawing wages exceeding one thousand and six hundred rupees per mensem.

Employer's Obligation: Registration (Chapter II)

1. Registration of Establishment within prescribed time, in prescribed form and manner, on payment of
    prescribed fees.

2. Registration can be revoked in certain cases, on grounds such as misrepresentation or suppression
    of any material fact. Registering Officer is required to give a hearing to the Principal Employer.

Appropriate Government is required to approve the revocation and the Principal Employer to be communicated the order in writing.

3. Operation of the certificate of registration can be suspended, pending revocation, for any special
    reasons.

4. Prohibition against employment of Inter-State migrant workmen without registration.

Important to note that for the registration to be revoked or suspended pending revocation, the Principal Employer is entitled

i. hearing before the order and
ii. Communication of the order, in writing.

"Any special reasons" considered by the Registering Officer and the Appropriate Government must be, by legal pronouncements, relevant as seen on facts and merits of the case and the order must be a speaking order that shows the application of mind.

Contractor's Licencing (Chapter Ill)

1. Licence may contain such conditions, including in particular, (a) the terms and conditions of the
    agreement or other arrangement under which the workmen will be recruited (b) the remuneration
    payable and fixation of wages (c) hours of work and (d) other essential benefits.

2. Licence is issued by the appointed Licencing Officer on payment of prescribed fees and for any
    special reasons on furnishing of security for the due performance of the conditions of the licence.
    Procedure and the determination of the security has been specified.

3. Grant of licence, on application in the prescribed form and investigation by the licencing officer is valid
    for a specified period. Licence can be renewed, revoked, suspended and amended after compliance
    of prescribed procedure by the licensing officer.

4. Appeal allowed against the order of licencing officer in prescribed manner.

The Act also specifies the appointment of Inspectors and his powers like 1) entry into premises or place 2) examination of register, record or notices, 3) examination of person, 4) requiring of information, 5) seizure or taking copies of registers, record of wages, notices of portion thereof etc.

The Act further specifies under S .20 (4) " Any person required to produce any document or thing or to give any information required..... shall be deemed to be legally bound to do so within the meaning of
S .175 and S .176 of the Indian Penal Code (45 of 1860).

As a further deterent to the non-fulfilment of statutory obligations and as an additional effort to enforce the strict compliance by the Principal Employer and the Contractor the Act also specifies :-

S.20 (5) "The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall, so far as may be, apply to any search or Seizure under this section as they apply to any search or seizures made under the authority of a warrant issued under section 94 of the said Code".

Miscelleneous :
The Act (Chapter VII) relates to provisions regarding. (1) The date of recruitment (2) Industrial Disputes (3) Maintenance of Registers and other records (4) Obstruction, Contravention of provisions (5) other offences by person and company (6)Cognizance of offences (7) Limitation of Offences (8) Effect of laws and agreements in consistent with the Act (9) Power to exempt in special cases (10) Protection of action taken under this Act and (11) Power to give directions and to make rules.

Schedule :
Specifically provided that the Inter-State Migrant Workmen are also covered by :-

1 .The Workmens Compensation Act, 1923.
2. The Payment of Wages Act, 1936.
3. The Industrial Disputes Act, 1947.
4. The Employers' State Insurance Act, 1948.
5. The Employers' Provident Fund and Miscelleneous Provisions Act, 1952.
6. The Maternity Benefit Act, 1961.



 
THE WORKMEN'S COMPENSATION ACT, 1923
 

The Objective:

To provide for the payment of compensation to the workmen for injury or accident.

This Act is one of the earliest Acts having come into force from 1st July, 1924.  It extends to whole of India.

The salient features the Act in brief are as under.

Employer's Liability for Compensation:

a)  A workman is entitled to get compensation from his employer if he is injured while on duty and
    during the course of his employment with his employer.

b)  If a workman dies due to the accident while of duty and during the course of his employment with his
     employer, his dependents are entitled to receive the amount of compensation from his employer.

c)  Occupational diseases:  If a workman contacts occupational diseases enlisted in Schedule III of
     this  Act, while on duty and during the course of his employment with his employer, the said disease
     shall be deemed to be an injury by accident.  The workman or if dead, his dependents are entitled to
     receive the amount of compensation from his employer.

d)  Amount of Compensation:

(1) Temporary Disablement:

Where the disablement is temporary i.e. workman not being able to attend to duty for more than 3 days on account of injury is entitle to get compensation at the rate of a half monthly payment of the sum equivalent to twenty five percent of monthly wages of the workman.  E.G. if workman's wages are Rs.500/- per month he will receive Rs.125/- for a fortnight i.e. 15 days or Rs. 8.33 p. per day and so on depending on his wages.  If the disablement continues for more than 28 days therefrom days to be counted from the date of injury.

(2)  Permanent total disablement:

The permanent total disablement is listed in Schedule I of the Act.  Where the disablement is permanent and total the amount of compensation will be equivalent of fifty percent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of twenty four thousand rupees
(Rs. 24,000/-) whichever is more.

(3) Death:

Where death results from an injury an amount equal to forty percent of the monthly wages of the deceased workman multiplied by the relevant factor or an amount of twenty thousand rupees
(Rs. 20,000/-) whichever is more.

NOTE:

1)  For purpose of sub clause (2) & (3) above 'relevant factor' in relation to workman mean the factor
    specified in schedule IV of the Act against the age of the workman.

2)  Where the monthly wages of a workman exceed Rs.1,000/- his monthly wages for the purpose of
     clause (2) & (3) shall be deemed to be Rs. 1,000/- only.

e)   If Permanent partial disablement  results from the injury :-  such percentage of the
      compensation which would have been payable in the case of permanent total  disablement after
      determining the loss of earning capacity caused by that injury

Recovery of Compensation:

1.  If the employer fails to pay the compensation to a workman of fails to deposit the amount of compensation with the commissioner for Workmen's Compensation, or the Labour Court concerned, them the injured workman, either himself or through his representative, should send a notice of his claim or his employer mentioning therein the time, date, place and nature of accident, wage rate of the workman and the amount of compensation.  In case of death of a workman , any of his dependents or his/her representative can send such notice with detailed information.  A copy of the same should be sent to the Commissioner for Workmen's Compensation or the Labour Court concerned.

2.  If the employer fails to settle the claim, the workman himself or any of the dependents of the deceased workman should file the application before the concerned court having jurisdiction to entertain the claim.  This has to be done in form 'F' by the injured workman and in form 'G' by the dependent of the daceased workman.

3.  The court fee is @ Rs.1/- per every Rs. 500/- or less amount of claim and paise 50 for claim of half monthly wages for temporary disablement.

4.  Amount payable under this Act cannot be assigned or charged or be liable to attachment or be passed to any person other than the workman by operation of law nor shall any claim be set-off against the same.  Only the amount which is paid towards half monthly wages during the period of disablement can be deducted from the amount of final settlement of claim.

5.  The Court has power to award interest on the amount of compensation, cost and penalty.

6.  If the employer fails to pay or deposit the amount of compensation awarded by the Court or admitted by the employer, them on application by the workman to the concerned court for recovery of the same, the court shall write to the collector and the same will be recovered as arrears of Land Revenue.

Contracting:

1) Where any person (referred to as the principal) in the course of or for the purpose of his trade or business, contracts with any other person (referred to as the contractor) for execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the principal, the principal shall be liable to pay to any workman employed in the execution of the work the compensation which he would have been liable to pay if that workman had been immediately employed by him.  And where compensation is claimed from the principal, this Act shall apply as if references to the principal were substituted for references to the employer except that the amount of compensation shall be calculated with reference to the wages of the workman under the employer by whom he is immediately employed.

2)  The workman is at liberty to recover compensation either from the contractor or the principal.

Transfer of Assets:

The Act specifies that compensation is the first charge on assets transferred by employer.

Limitation for Filing Claim:

The application for recovery of claim should be filed within two years from the date of accident.  However, the Court has power to condone the delay in filing an application.

Commissioners:

Commissioners under the Act are appointed by the Government.  They carry certain powers relating to recording of evidence, registering of agreements etc.

Appeals:

Workman's appeal against the order of the Commissioner for Workmen's Compensation or by the Presiding Officer of the Labour Court concerned lies to the High Court.

Where an employer makes an appeal, the Commissioner may and if so desired by the High Court, shall, pending the decision of the appeal, withhold payment of any sum in deposit with him.

The Commissioner may recover as arrears of land revenue, any amount payable by any person under this Act, whether under an agreement for the payment of compensation or otherwise, and the Commissioner shall be deemed to be a public officer within the meaning of the Revenue Recovery Act, 1980.

Schedule I
List of injuries deemed to result in Permanent Total disablement.
Sehedule II
List of persons who subject to the provisions of section 2(1) (h), are included in the definition of
' workman '.
Schedule III
List of occupational diseases.
Schedule IV
Amount of compensation payable in certain cases.
SCHEDULE IV
Factors for working out lump sum equivalent of compensation amount in case of permanent disablement  and  death.
 
Completed years of age on the last birthday of the 
workman immediately preceding the date on which 
the compensation fell due.                                                                                Factors
not more than       16             228.54    29              209.92    41            181.37    54                139.13 
                           17             227.49    30              207.98    42            178.49    55                135.56 
                           18             226.38    31              205.95    43            175.54    56                131.95 
                           19             225.22    32              203.85    44            172.52    57                128.33 
                           20             224.00    33              201.66    45            169.44    58                124.70 
                           21             222.71    34              199.40    46            166.29    59                121.05 
                           22             221.37    35              197.06    47            163.07    60                117.41 
                           23             219.95    36              194.64    48            159.80    61                113.77 
                           24             218.47    37              192.14    49            156.47    62                110.14 
                           25             216.91    38              189.56    50            153.09    63                106.52 
                           26             215.28    39              186.90    51            149.67    64                102.93 
                           27             213.57    40              184.17    52            146.20    65   or more    99.37 
                           28             211.79                                   53            142.68
 

 

The Factories Act 1948
 P.D. Mathew
 K.S.Jaiswar

Introduction
Industry in India has marked a steady and tremendous growth since Independence. People like Jawaharlal Nehru recognised it as one of the means to pull India out of its colonial part of underdevelopment into the twentieth century and as the only solution to her economic difficulties. Much has been done to encourage the growth of factories and the development of technology. In fact the government tries its best to ensure that the industrial units are protected and that a market is available for their products.

Unfortunately, a similar concern is not shown to the workers who actually produce the goods. More than 5.5. million workers are employed in some 80,000 factories in the country .Despite the Factories Act of 1948, they remain at the mercy of their employers , and are frequently exploited. This vicious circle of official neglect and their own ignorance of the Act, affects them both economically art d socially and hampers the country 's industrial growth and  prosperity. Hence this booklet is an attempt to share the knowledge of this Act with the workers.

The background

The Factories Act, 1948 was enacted to protect factory workers from dangers to their health from machines and from bad working conditions in the factory .It has detailed provisions relating to the health, safety and welfare of workers as well as concerning their working conditions, safety measures and other facilities to enhance their welfare. These include clauses such as the maximum number of hours a worker may be employed in a factory, facilities of interval, for rest, off hours and earned and other leave. The Act also prescribes specific hours of work for women and children.

To whom does this Act apply?

It applies to every factory established in India, including the ones owned by the Government.

What is a factory?

A factory is any place where ten or more workers are engaged in a manufacturing process, with the aid of power. It can also be a" place where 20 or more workers are working, without the aid of power. Mines, mobile units of armed forces, hostels, or restaurants are not considered factories.

Explanation of other terms in the Act

Worker: A worker is a person employed in any manufacturing process. He/she also need not be someone directly engaged in  manufacturing but only indirectly, as for example, the person cleaning any machinery or the premises used for such a process. This employment can be direct or indirect through any agency including a contractor with or without the knowledge of the principal employer. The members of the armed forces are not included in this category.

Manufacturing process includes

1. making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleanIng, breaking up,
    demolishing or otherwise treating or adapting any article with a view to its use, sale, transport.
    delivery or disposal, or

2. pumping oil, water, sewage or any other substance, or

3. generating, transforming or transmitting power, or

4. composing types for printing, printing by letter press, lithography, photogravure or other similar
    processes of book binding, or

5. constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels, or

6. preserving or storing any article in old storage.

Power

It means electrical energy, or any other form of mechanically  transmitted energy which is not agency generated by human or animal agency.

Is the approval, licensing and registration of factories compulsory?

Every employer is required to obtain prior permission from the State Government for the site where he proposes to construct and/ or extend the factory. In this respect, he has to submit the plans and specifications of construction for certification and approval to the Chief Inspector of Factories or the State Government.

                            Health, Safety and Welfare of Workers

Every employer is required to provide and maintain these facilities in his factory to ensure proper safeguards to the health of the workers.

Cleanliness

The employer will keep the factory clean and free from effluvia arising from any drain or other nuisance. Dirt and refuse should be removed daily. Floors will be cleaned every week by washing with disinfectant. Wet floors will be dried up. Walls and ceilings, if painted, should be repainted at least once in 5 years. Washable water-paint will be repainted with at least one coat at least once in 3 years and washed at least once in every 14 months. White-wash and colour-wash will be done once in every 14 months.

Disposal of wastes, ventilation and temperature

The employer should make effective arrangements for the disposal of all industrial wastes and effluents. To provide fresh air and reasonable conditions of comfort to prevent any injury to the health of the workers, the employer must maintain effective and adequate provisions. Walls and roofs should be made of such material and be so designed as to prevent high rise of temperature. White-wash, spray insulation and screen should be used to keep the temperature at the specified level.

Dust and fumes

To prevent inhalation or accumulation of dust and fumes injurious or offensive to the workers, the employer must take effective measures for their exhaust from the workrooms.
 

Artificial humidification

If humidity in a factory is lessened due to its manufacturing process the employer must make arrangements for artificial cooling of air in the workrooms, using clean and wholesome water from public supply.

Overcrowding

The employer must avoid overcrowding lest it endangers the health of the workers in any room of the factory. There should be at least 500 cubic feet of space for every worker. In calculating this, no account will be taken of space more than 14 feet above ground level.

Lighting

The employer must provide and maintain sufficient and suitable natural and artificial lighting in the factory rooms. Steps must be taken to avoid glare, reflection or shadow that can cause eye-strain or risk of accident to any worker.

Drinking water

Sufficient supply of wholesome waer must be maintained by the employer at suitable and convenient points. The containers must be legibly marked 'Drinking Water' and kept at a distance of not less than 20 feet from any washing place, urinal or latrine. If a factory employs 250 workers its employer must arrange for cool drinking water during hot season.

Latrines and urinals

An employer must construct separate enclosed accommodation for latrines and urinals for male and female workers, conveniently situated and accessible. These should be adequately lighted, ventilated and maintained in a clean and sanitary condition by sweepers employed by the employer. In a factory with 250 or more workers all latrines and urinals will be of a prescribed sanitary type.
 

Spittoons

In every factory a sufficient number of spittoons should be kept at convenient places. No person shall spit within the premises of the factory except in the spittoons. Offenders should be punished with a fine not exceeding Rs. 5.

                                                Safety Measures

The Act makes it obligatory for the employer to ensure the following safety measures for the workers. He shall arrange :

1. Fencing of all dangerous and moving parts of the machinery while these are in motion or in use;

2. Covering of all pits, dumps and openings which may be a source of danger to the workers;

3. Keeping floors, stairs and other means of access safe for the workers;

4. Casing of new machinery;

5. Encasing and guarding of every set of screw, bolt, spindle, wheel or pinion;

6. Ensuring safe working pressure in pressure plants and machinery operated at pressure above
    atmospheric pressure;

7. Supply of safety applications like goggles, safety boots, gloves and others;

8. Provisions of means of escape in case of fire and a warning system in case of fire explosives.
    inflammable dust or gas;

9. Sundry necessary precautions against fire, dangerous fumes, risk of injury to eyes, lifting of excessive
    weights, and excessive speed of revolving machinery;

10. All hoists, lifts, lifting machinery, chains and ropes are to be of good mechanical construction, sound
     material and adequate strength. These are not to be loaded beyond the safe working load which is to
     be clearly marked thereon and are also to be sufficiently protected by enclosures fitted with
     interlocking gates. The gates are also to be maintained properly and examined thoroughly at a
     prescribed periodicity;

11. The examination, mounting or shipping of belts or lubrication, or other adjustment must be done by
      a specially trained adult male worker wearing tight fitting clothing supplied by the employer;

12. No woman or child is to be employed in any part of a factory for pressing cotton in which a cotton
      opener is at work;

13. Women and young persons are also prohibited to clean, lubricate or adjust any part of an electric
      motor or any transmission machinery when these are in motion.

14. Young persons are also not allowed to work on any dangerous machines without adequate training
      and supervision.
 

                                                   Welfare Measures

Every employer has to provide the following prescribed facilities of welfare to the workers employed in the factory.

Washing facilities

Every employer is required to provide adequate, suitable, separate and properly screened facilities for washing for the use of male and female workers. These should be conveniently accessible and kept clean.

Storing and drying facilities of clothes

The employer will provide a place suitable for keeping the clothes not worn during working hours and for the drying of wet clothes by the workers.

Sitting facilities

The employer should provide and maintain suitable sitting facilities for all workers who are required to work in a standing position.

First aid appliances

The employer must provide and maintain first aid boxes or cupboards, filled with the prescribed contents. There should be atleast one such box for every 150 workers, accessible to the workers during all working hours. In a factory with 500 or more workers the employer must provide and maintain an ambulance room in the charge of prescribed medical and nursing staff. It will contain the prescribed equipment and its facilities must always be readily available the workers during the working hours of the factory .

Canteens

If a factory employees 250 or more workers the employer shall provide and maintain canteen facilities for the workers. It should be run in accordance with government rules on its construction,
furniture, other equipment, food to be served and constitution of the managing committee.

Shelters, rest rooms and lunch rooms

 Every factory employing more than 150 workers should have the  provision for rest rooms. A room with drinking water facilities should be earmarked for their lunch and rest. However, if a canteen is already maintained by the employer no such provision is necessary.

Creches

In a factory where more than 30 women are employed, the employer shall provide and maintain a creche for the use of their children below the age of 6 years. The rooms must be well
maintained in a sanitary condition, adequately lighted and ventilated, and should be under the charge of women trained in the care of children and infants. The government can also make rules to get employers to provide for the washing and changing of clothes, supply of free milk or refreshment or both. The employer should allow the mothers to visit the children and feed them at necessary intervals.

                                               Working Hours
 

For adults

I. Weekly hours -No adult worker shall be required or allowed to work in a factory for more than 48 hours
   in a week.

2. Weekly and compensatory holidays: Every worker shall be allowed a day off every week. The first day
    of the week i.e. Sunday will be given as a holiday. However, with the permission of the inspector the
    day off, can be given on any other day of the week. If a worker is deprived of his/her weekly holiday,
    he/she shall be allowed a substitute holiday on any other day within that month or not later than the
    two months that follow.

3. Daily hours: No adult shall be required or allowed to work in a factory for more than 9 hours a day.

4. Interval for rest: The worker shall be given an interval for rest at least, for half an hour per every
    5 hours of his working day in the factory .

5. Spread over of working hours: The period of work of an adult worker shall be so arranged, that,
    including his interval for rest, they should not spread over more than 10 hours on any day.

6. Shifts: For a worker engaged on night shift, weekly or compensatory holiday means an off of
    consecutive 24 hours. The shifts should not be so arranged that more than one relay of workers is
    engaged in work of the same kind at the same time.

7. Overtime: If a worker works for more than 9 hours in any day or more than 48 hours in a week, the
    employer will pay him/her wages at double the rate of his/her normal wages.

8. Double employment prohibited: No worker should be allowed or required to work in two factories
    during the same period.

Employment of children and adolescent workers

Child is a worker who has completed 14 years of age. Adolescent is a worker who is above 15, and below 18 years of age. They are called young persons.

A child or adolescent worker may be allowed to work in a factory if,

1. a certificate of fitness is issued to him by the Certifying Surgeon and is kept in the custody of
    manager of the factory and

2. he wears a token while at work, giving reference to the certificate. The Certifying Surgeon issues the
    certificate of fitness after a thorough check up ascertaining the fitness of the child or adolescent, to
    work in a factory. Application for such examination is made either by the worker himself or his
    guardian.

The application should be attached with a document signed by the factory manager stating that the person will be employed by him if certified to be fit. Also the manager can apply for such an examination.

After examination, the certifying Surgeon may grant the certificate of fitness to a person to work as a child or as adult or as adolescent.

The certificate proves that the certifying Surgeon is satisfied that the young person has completed his/her l4th or 15th years, has attained the prescribed physical standard and is thus  fit for such work.

A certificate is valid for 12 months and can thereafter be renewed. It can be revoked at any time by the certifying Surgeon if the holder is no longer fit to work. When a certifying Surgeon refuses to grant or renew a certificate, he should if requested, state his reasons in writing. The employer should pay the fees for the certificate.

Working hours for children

No child should be employed or permitted to work in any factory for more than 4 hours in any day and during the night. The work period of children should be limited to two shifts not overlapping or spreading over more than 5  hours. They should be entitled to a weekly off, just like an adult worker. A notice should be displayed in the factory by the employer showing clearly the period of work for children. He should also maintain a register of child workers indicating their names, nature of work, group, shift and the numbers of their certificate of fitness. (A similar register is required to be maintained by the employer also for the adult workers.)
 
An inspector can direct the manager of a factory to have a child or adolescent worker examined by a certifying surgeon if he feels that a person working in the factory without a certificate is a young person or is no longer fit to work. in the capacity mentioned In the certificate issued to him.

                                       Employment of Women

While all the provisions of the Factories Act, relating to the adult workers are applicable to adult women workers, the following special provisions provide them with additional safeguards.

I. Women cannot be employed to work on or near machinery in motion.

2. Women are prohibited to work near cotton openers.

3. Provision of a creche is to be made by the employer if there are 30 or more female workers in the
    employment of the factory.

4. No woman shall be required or allowed to work in a factory after 7 p.m. and before 6 a.m. With
    specific permission of the Government, however, women workers can be permitted to work in a
    factory until 10 p.m. and after 5 a.m. The main reason for fixing the prescribed hours of work for
    women is that they also have to look after their domestic duties.

5. If the work in a factory, exposes the worker to serious risk of bodily injury, poisoning or disease, the
    Government may prohibit the employment of women in such factory.

                                               Annual Leave with Wages

Factory workers are entitled to annual leave with wages according to the provisions mentioned below:

1. A worker is required to complete 240 days or more of service, during a calendar year in order to be
    entitled to annual leave with wages the next calendar year.

2. For computation of 240 days, the period in respect of the following shall be treated as period of duty;

    i. Layoff
    ii. Maternity leave to a female worker
    ii. Leave earned in the previous year

Note

Lay off means the inability, failure or refusal by the employer to provide work to a workman, whose name is borne on the master roll (register of employment) of the employer and who is not a casual or badli worker and who has not been retrenched within 2 hours of his reporting for duty at the scheduled hour of work. The layoff may arise due to shortage of coal, power or raw material breakdown in machinery , accumulation of stocks with the employer, or any natural calamity or connected reason. In this case, the worker is entitled to 50% of his ordinary wages as layoff compensation for the days of the layoff. A female worker is entitled to a maximum 12 weeks maternity leave for the purpose of computing 240 days of service.

3. An adult worker is entitled to one day's leave for every 20 days of work in the previous calendar year.

4. Similarly a child worker earns one day's leave for every 15 days of work.

5. Leave admissible is exclusive of all holidays whether occurring during or at the beginning or end of the
    period of leave.

6. In the case of a worker who is,

    1. discharged or dismissed from service or
    2. leaves the service at his own, or
    3. is superannuated (retired as is commonly said) or
    4. dies while in service,

he or his heir shall be entitled to wages in lieu of the quantum of leave, calculated, at the rate of one day's leave for 20 days of work for adults and one day's leave for 15 days of work for a child, even though he or she has not completed 240 days of service.
 

7. The wages payable, as stated in the preceding paragraph, will be payable before the expiry of the
    second working day to a worker, if he is discharged, dismissed or quits employment. If the worker
    retires or dies, the wages should be paid within two months of such retirement or death:

8. In calculating the leave period, fraction of leave of half a day or more shall be treated as one full day's
    leave and fraction of less than half a day shall be ignored.

9. Leave not availed of by a worker during a year shall be carried forward and added to the leave
    admissible for the ensueing year, subject to a maximum of 30 days in the case of a child worker.
    However, the annual leave not allowed by the employer for Any reason shall be carried forward
    without any limit.

10. A worker is required to apply for annual leave with wages at least 15 days before the date on which
     he/she wishes his leave, to begin, the leave period. In a public utility service, however, the
     application should be submitted at least 30 days before the worker wishes to proceed on Ieave. For the
     leave on medical grounds, such notice is not necessary.

11. A worker can avail of annual leave with wage for a maximum of three times in a year.

12. For regulation of the grant of leave the manager may draw up a scheme, in consultation with the
     Workers' Committee or the representatives of the employees, and get it approved by the Chief
     Inspector of Factories. The scheme will be displayed conspicuously in the factory and be valid for
     one year. It can be renewed further on a year-to-year basis on application to the Chief Inspector of
     Factories.

13. The application for leave should not be refused by the employer unless it is not in accordance with
      the Scheme of regulation of grant of leave.

14. The unavailed leave of a worker should not be taken into account in computing the notice period if
      any required before discharge or dismissal.
 

15. A worker shall for the leave allowed to him be paid wages equal to his daily average wage for the
     month immediately preceding his leave.

Payment of wages for annual in advance

1. An adult worker, who has been allowed annual leave with wages, for not less than 4 days, can draw
    wages in advance for the period of leave.

2. A child worker can draw his wages in advance, for the leave period if he goes on leave for not less
    than five days.

Note

1. The provisions of the Factories Act, 1948, regarding the employment of children are in addition to the
    provisions of the Employment of Children Act, 1938.

2. The provisions of the Annual Leave with Wages of the Factories Act, 1948, shall not affect any right of
    the workers under any other law, award, agreement or contract of service.

3. In every such industry where 100 or more workmen are employed, the employer shall constitute a
    Workers Committee which will have equal representatives of the employees and employer.

4. Award means an interim or final decision of an Industrial Dispute by a Labour Court, Industrial
    Tribunal, National Tribunal or Arbitrator.

                                            Enforcing Authority
Inspecting staff

The State Governments administer and enforce this Act. The government may appoint a Chief Inspector to administer the Act throughout the State. It may appoint Inspectors and assign them 'such areas as it may think necessary. It may also appoint Additional Chief Inspectors, Joint Chief Inspectors and Deputy Chief Inspectors to exercise such powers of the Chief Inspector as may be specified. Every District Magistrate is an Inspector for his district. The act of a District Magistrate as an Inspector is an executive act and not a Judicial act. The Inspectorate Staff is deemed to be public servants within the meaning of the Indian Penal Code. No person who is or becomes directly or indirectly interested in the affairs of a factory can act as its Inspectorate Staff.

An Inspector may enter, alone or with assistants, the premises of a factory, may conduct examination of the premises, plant and machinery, require production of registers or other documents, and take statements of any person on the spot or otherwise; but no person can be compelled to answer any question or give evidence tending to incriminate himself.

An Inspector has power to demand the medical examination of child or adolescent workers and to takes samples of any substance used in the factory if it is suspected to be injurious to the health of the workers.

Whoever wilfully obstructs an Inspector in the exercise of his powers or fails to produce on demand any register or document, shall be punished with imprisonment up to 3 months or with fine
up to five hundred rupees or with both.

Certifying surgeons

The State Government may appoint qualified medical practitioners to carry out duties prescribed by the Government with respect to factories. Such duties include examination and certification of young persons' fitness to work in factories of cases of illness and of any work likely to cause injury to the health of workers.

Safety officer

In every factory where 1000 or more workers are ordinarily employed and its manufacturing process involves risk of bodily injuries to the workers, the employer shall appoint safety officers as prescribed by the Government.

Welfare officer

In every factory where 500 or more workers are ordinarily employed, its employer must appoint welfare officers specified by the Government.

Special cases

The government can also apply the provisions of the Factories Act to the following establishments.

    1. Where the number of persons employed is less than 10, if
        working with the aid of power,

    2. less than 20, if working without the aid of power.

But this provision does not apply if the owner is carrying on the manufacturing process with the aid of his own family members.

The Government may exempt any workshop where a manufacturing  process is carried on and attached to a public institution maintained for the purpose of education, training, research or reformation.

Notice of certain accidents and diseases

If an accident occurs in any factory causing death or bodily injury or prevents a worker from working for more than 48 hours, the manager must immediately send notice of this to the prescribed authorities (i.e Labour Commissioner). The authorities should also make an enquiry into the cause within one month of the receipt of the notice. If a worker contracts some disease specified in the schedule to the Act, (given below) the manager has to send notice to the prescribed authorities, within the specified time and on the prescribed form. the medical practitioner who attends on the such a person should also send a report to the Chief Inspector without delay giving the patient's name, address, nature of disease, name and address of factory. He can be fined up to Rs.50 if he defaults, in this regard. The government may conduct an enquiry into the causes of the accident or disease.

The schedule

List of Noticeable Diseases

1. Lead poisoning, including poisoning by any preparation or compound of lead or their sequelae.

2. Lead tetra-ethyl poisoning.

3. Phosphorus poisoning or its sequelae.

4. Mercury poisoning or its sequelae.

5. Manganese poisoning or its sequelae.

6.. Arsenic poisoning or its sequelae.

7. Poisoning by nitrous fumes.

8. Carbon bisulphite poisoning.

9. Benzene poisoning including poisoning by any of its   homologues, their intro or amido derivatives or
    its sequelae.

10. Chrome ulceration or its sequelae.

11. Anthrax.

12. Silicosis.

13. Poisoning by halogens or halogen derivatives of the hydrocarbons of the alphatic series..

14. Pathological manifestations due to (a) radium or other radioactive substances; (b) X-rays.

15. Primary epitheliomatous cancer of the skin.

16. Toxic Anaemia.

17. Toxic jaundice due to poisonous substances.

18. Oil acne or dermatitis due to mineral oils and compound containing mineral oil base.

19. Byssionsis

20. Asbestosis.

21. Occupational or contract dermatitis caused by direct contact with chemicals and paints.
      These are of two types i.e. primary irritants and allergic sensitisers.

22. Noise induced hearing loss because of exposure to high noise levels). Safety and
     Occupational Health Surveys

These surveys are carried out by the Chief Inspector, Director General of Factory Advice Service and Labour Institute, the Director General of Health Service or any such Officer as may be authorised. They can examine and test the plant and machinery and collect samples or other data.

                                        Offences and Penalties
Offences

1. Violation of the Factories Act, 1948 and rules made thereunder by the employer or occupier (Occupier
    is the person who has ultimate control over the affairs of the factory).

2. Violation of the Act and rules made thereunder by the workers.

3. Obstructing an Inspector while performing his duties.

4. Wrongful disclosure of the results of the analysis of samples

5. Using false certificates of fitness.

6. Double employment of a child.

General penalty

1. For non-observance of any provisions of the Act and rules,  the employer and manager shall be guilty
    of offence and   punishable with imprisonment up to three months or with fine  up to Rs. 2000 or with
    both. If the offence is continued, even  after conviction a further fine of Rs. 75 per day during the
    continuance of default will be imposed.

2. If any provisions relating to safety of workers are violated, a  a result of which an accident is caused
    and a death takes   place, fine shall not be less than Rs. 1000. In case the  accident causes serious
    bodily injury, a fine not less than Rs. 500 will be imposed.

Enhanced penalty

A person who has been convicted of an offence earlier. as stated above, under the general penalty. and is again found guilty of the some offence, shall be punished. on being convicted again with imprisonment for a term which may extend to 6 months or with a fine of not Iess than two hundred rupees but which may extend to five thousand rupees or with both. However, the Court may, for any adequate and special reasons to be mentioned in the judgement, impose a fine of less than two hundred rupees. Where the contravention has resulted in an accident causing death or serious bodily injury, the fine will not be less than two thousand rupees in the case of death and one thousand rupees in the case of serious bodily injury.

Offences by workers

If any worker does not observe any provisions of the Act, he will be punished with a fine up to
Rs. 20.

Penalty for using a false certificate

A worker using a false certificate or attempting to use such a certificate or who knowingly allows a false certificate to be used shall be punishable with imprisonment up to one month or a fine up to fifty rupees or both.

Penalty for permitting double employment of child

The parent or guardian of a child or any other person having charge of the child or gaining direct benefit from the wages of the child shall be punishable with a fine of upto fifty rupees for allowing the child to engage himself in double employment.

Cognizance of offences

No court shall accept any offence under this Act except on complaint by, or with the previous sanction in writing of an Inspector of Factories. Offences under this Act will be tried only by a Presidency or a First Class Magistrate.

The complaint must be filed within three months of the date of the alleged commission of offence coming to the knowledge of an Inspector. However, the complaint regarding disobedience of the written order of the Inspector can be made within six months of the commission of the alleged offence.

Appeal

The manager of the factory served an order in writing by the Inspector, may, within thirty days of the service of order, appeal against it to the appellate authority, who may confirm, modify or
reverse the order, subject to the rules.

Display of notices

The employer should display in the factory abstracts of the Act containing the main points relating to workers' welfare in the factory. The notice should have the names and addresses of the Inspector and Certifying Surgeon. The notice should be written in English and in the language understood by the majority of workers and displayed at an easily seen place in the factory, preferably near the . It should be maintained in a clean and legible condition.

Protection for action taken in good faith

Any suit, prosecution or legal proceeding should not lie against any person for an act in good faith done under this Act.

Restriction on disclosure of information

No Inspector, while ill service or after Ieaving the service, should disclose any information, which may come to his knowledge in the course of his duties.  Non-observance of this provision will attract penalty of punishment up to six months or a fine up to one thousand rupees or both.

Liability of owner of premises in certain cases

Where more than one factory is situated in leased or rented premises, the owner of the premises will be responsible for providing and maintaining common facilities like approach roads, drainage, water supply, lighting and sanitation. Where independent or self-contained floors or flats are leased to different factories, the owner is liable for the provision and maintenance of latrines, urinals. washing facility, supply of water, safe means of access and stairs, precautions in case of fire, hoists and lifts.
 

Obligations of workers

No worker shall wilfully interfere with or misuse any appliance, convenience or other thing provided to ensure safety and for securing the health and welfare of workers. He will also not wilfully and without reasonable cause do anything likely to endanger his own life and that of others.

He will not wilfully neglect to make use of any appliance or other
thing provided by the employer in the factory for securing the health or safety of workers.

Any contravention of these provisions will im pose penalty on the
worker to the extent of three months imprisonment or fine up to one hundred rupees or both.

Conclusion

The present Factories Act in operation for the last 37 years has provided ample benefits to the factory workers. It has considerably improved their working and employment conditions. The Government is actively considering the introduction of some vital amendments to the Act to keep It in tune with time and make it more effective. It is, however necessary that the workers and their representatives make themselves aware of the various provisions of the Act and safeguard their interests on their own and force the defaulting employer to be conscious of his legal obligations.
 



 
The Industrial Disputes Act 1947
P.D. Mathew
K.S Jaiswar
 

Introduction

Rapid industrialisation in India has led to growing concerns and issues. Inter-personal relationships between employer and employee has changed. Direct contact between the employer and the employed has diminished. Dispute and differences of opinion between the two need investigation and settlement by a third independent agency. And here government involvement is essential under the Industrial Disputes Act.

The Industrial Disputes Act, 1947 is Government's effort to regulate industrial relations in India. It seeks to ensure progress of industry through harmony and cordial relations between employers and employees. The Supreme Court has stated the following as objectives for which the Act was constituted:

(i) Promotion of measures for securing and preserving amity and good relations between employers and
    employees;

(ii) Investigation and settlement of industrial disputes between (a) employers and employers;
    (b ) employers and employees; and (c) employees and employees;

(iii) Prevention of illegal strikes and lock-outs;

(iv) Payment of compensation to workmen in the event of Lay-off and Retrenchment; and

(v) Promotion of collective bargaining.

                                              Background

To regulate industrial relations, the Government has asked employers and workmen to observe some terms and conditions of employment and, for specified periods, to maintain harmony between the employer and workmen and to prevent an industrial dispute. This ensures uninterrupted production and supply of services to society, and thereby contribute to growth and development of the national economy.

For this, Government can prohibit strikes and lock-outs in the industry .It can direct maintenance of employment in essential services by demanding that workmen do not leave their employment and that employers do not close their undertakings or suspend work.

                              To whom does this act apply?

The Industrial Disputes Act applies to all States of the Indian Union. All industrial and commercial establishments which employ workmen--technical or non-technical including supervisors drawing wages and salaries up to Rs. 1600 per month have to comply with the Act. It does not apply to persons in managerial and administrative positions, Army, Navy, Air Force, Police, Prisons and Civil Services of Government.

Implementation or the Act

The act is administered by the Central and State Governments. The Central Government handles disputes between employer and employees in mines, oil-fields, railways, major ports, airlines and other industrial and financial institutions under the Central Government and other industrial disputes are handled by the State Governments in their respective spheres.

What is an Industry?

An 'Industry' means any business, trade, undertaking manufacture or calling of employers and includes any service, employment, handicraft, or industrial occupation or avocation of employees.

This definition has been given numerous interpretations from time to time. The term was comprehensively examined by the Supreme Court in the case of Bangalore Water Supply and Sewerage Board vs. A. Rajappa with the following observations.

To be considered an Industry , and activity should satisfy the following:

(i) it should be a systematic activity;

(ii) it should be organised by cooperation between employer and employees; and

(iii it should be for the production and/or distribution of goods and services for the satisfaction of human
    wants and wishes which are not spiritual or religious by nature, whether it is carried for profit or gain
    or not.

The Supreme Court's decision has a wide sweep brining charitable or missionary institutions, hospitals, educational and other research institutions, municipal corporations, firms of chartered accountants and solicitors, etc. under the cover of term 'Industry'.

In the light of the Supreme Court's decision in the Bangalore Water Supply and Sewerage Board's case, the definition of 'industry' was recast in the Industrial Disputes (Amendment) Act, 1982 to give it a clearer meaning. It defined Industry as a "systematic activity carried on by cooperation between an employer and his workmen for the production, supply and distribution of goods or service with or without profit." It included activities of the Dock Labour Board, professional practice by industry or groups, sales and business promotion activities, and agricultural activity ancillary to industrial activity. It excluded hospitals, educational and research institutions and charitable services. Although the amendment by 1982 Act has received Parliament and Presidential approval, the amended definition has not so far been enforced, due to opposition from workers. As such, the definition of Industry as in the 1947 Act, still continues.

Other definitions

Industrial Dispute

It means any dispute or difference between employers and workmen, or between employers and employers or between workmen and workmen, which is connected with employment or non-employment or terms of employment or with the conditions of labour of any person.

Lay-off

Lay-off means the failure, refusal or inability of an employer to give employment to a workman whose name appears on the rolls of his industrial establishment and who has not been retrenched due to shortage of coal, power or raw material, accumulation of stocks, breakdown of machinery or natural calamity or any other connected reason.

The lay-off may be for half a day or a whole day. A workman laid off by the employer is entitled to lay-off compensation at the rate of half-day wages for a day's lay-off.

Retrenchment

It means termination by the employer of the service of a workman for reasons other than punishment or disciplinary action. Voluntary retirement, or retirement at the age of superannuation or termination on the ground of continued ill health or non-renewal of contract of employment do not amount to retrenchment.

In the event of retrenchment, a workman among other things is entitled to retrenchment compensation at the rate of fifteen days wages for each completed year of service.

Lock-out

Lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to give work to people employed by him.

Public utility services

Railways, postal, telegraph and telephone service, industry supplying power, light, or water to public, transport for the carriage of goods or passengers by air, any system of public conservancy or sanitation, or any industry specified in the first schedule of the Act have been declared as a public utility service by government, for six months or less at a time.

Strike

Strike means a stop to work by a body of persons in an industry , or a concerted refusal or a refusal under a common understanding, of any number of employed persons to continue to work or accept employment.

Workman

Workman means any person (including an apprentice) employed in an industry to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether terms of employment are expressed or implied. It includes a person who has been dismissed, discharged or retrenched in a dispute or whose dismissal, discharge or retrenchment has led to that dispute.

Who are the authorities and what are their duties under the Act?

The following have been provided as authorities for investigating, preventing and resolving industrial disputes under the Act:

(1) Works Committee;
(2) Conciliation Officer;.
(3) Board of Conciliation;
(4) Court of Inquiry;
(5) Labour Courts;
(6) Industrial Tribunals; and
(7) National Tribunals.

What is Works Committee and its role?

The Works Committee has to be set up by the employer in his industrial establishment if he employs 100 or more workmen. The Works Committee should have equal number of representatives of the employer and workman.

The Committee's role is to promote, secure and preserve good relations between the employer and workmen. It will try to ensure that no difference of opinion develops between employer and workmen on a matter of common concern.

What are the duties of a Conciliation Officer?

Conciliation Officers are appointed by the Central or State Government. One Conciliation Officer may be appointed for one particular area or more. The duty of the Conciliation Officer is to create a congenial atmosphere in the industry so that the employer and workmen can reconcile their differences through persuasion and mediation of the Conciliation Officer. The Officer promotes settlement between employer and workmen in any industrial dispute.

A Conciliation Officer is empowered to enter an establishment, after giving notice to the employer, to conduct enquiry into a dispute. He also has power to enforce attendance before him of any person connected with the dispute and produce relevant records/documents. He is a public servant

In a public utility service, his basic duty is to ascertain the point of difference and induce the parties to reach a fair and amicable settlement. But he has no power to pronounce a judgment. The Officer has to send his report and memorandum of settlement to Government, within 14 days from the date of start of conciliation proceedings. Even if the settlement has not been arrived at, he has to send his report to Government giving details of steps taken by him and the reasons why the settlement was not reached. The time to submit the report can be extended by written agreement between the parties with the approval of the Conciliation Officer. In case the officer says the settlement was failed, Government can refer it to the Conciliation Board, Labour Court, Tribunal or National Tribunal. A settlement is binding for 6 months or as agreed unless revoked by any party within 2 months notice.

What is a Board of Conciliation and its function?

A Board of settlement may be set up by government to settle industrial disputes. It may have a Chairman and two or four other members. While the Chairman is an independent member, the members represent the employer and workmen in equal proportion.

A dispute is referred to the Board by Government. The Board's duty is to investigate the dispute and report to Government within two months. Time can be extended by mutual agreement between parties. Government may also extend the time on its own but not beyond two months.

The Board's role is also persuasive--to induce the parties to come to a settlement and send the report and memorandum of settlement to Government. In case no settlement is arrived at, even then the Board has to forward its report to the Government stating the steps taken and reasons why the settlement could not be reached. The Government may consider the failure report and may later refer it to the Labour Court or Tribunal. In case of public utility services, it is necessary that Government inform the parties if it decides not to refer the dispute to the Labour Court or Tribunal.

When will the Government constitute a Court of Inquiry and what are its functions?

As and when the need arises, Government can constitute a Court of Inquiry. This Court of Inquiry was to find out matters connected with or relevant to an industrial dispute. It may have one or more members. If it has more than one member, one will be appointed as a Chairman. All members have to be independent persons.

A Court of Inquiry looks into only matters which are referred to it by Government and submits its report to the Government ordinarily within six months from the date of reference.

How are Labour Courts constituted?

Central or the State Governments constitute one or more Iabour Court for deciding industrial disputes and discharging other functions assigned to it under the Act. The following are necessary for appointment of a presiding officer of Labour Courts:
 
(i) he is' or has been a judge of a High Court, or

(ii) he has been a district or additional district judge for not less than three years; or

(iii) he has been a presiding officer of a State Labour Court for not less than five years (in the case of
     Central Labour Court).

A Labour Court may consist of one or more independent persons. If more than one person is appointed to the Labour Court, one is the Chairman.

A person who is not an independent person or has reached sixty five years cannot be appointed nor can he continue as presiding officer of the Labour Court.

What are the functions of the Labour Court?

Labour Courts are empowered to decide or adjudicate the industrial dispute relating to the matters specified in the second schedule to the Act, which are as under:

(1) Legality or propriety of employers' order issued under a standing order (Certified conditions of
     employment).

(2) Application and interpretation of a standing order.

(3) Discharge, dismissal, reinstatement of and grant of relief to a workman.

(4) Withdrawal of any concession or privilege which was being paid/given to workmen as a customary
     payment or privilege.

(5) Legality or illegality of a strike or a lock-out

(6) Any matter of the third schedule which applies to activities with less than 100 workmen or a matter
     not covered by the third schedule.

What is a Tribunal?

A Tribunal is appointed by the Government to decide an industrial dispute. It has one person who is or has been a High Court judge or a District or Additional District Judge, with at least 3 years standing. The Government may appoint two more persons as assessors to advise the tribunal in its work. Tribunals have to function within limits imposed by the law under which they have been created.

What is a National Tribunal?

A National Tribunal is constituted by the Central Government only to decide an industrial dispute of national importance or which affects the interest of establishments situated in more than one State. It has only one person who is or has been a High Court judge.

How do Labour Court, Tribunal or National Tribunal decide an industrial dispute?

As in the case of the Conciliation Board or the Court of Inquiry, an industrial dispute is referred to the Labour Court, Industrial Tribunal or National Tribunal by Government. The Tribunals are assisted in their work by two assessors appointed by Government. When the dispute relates a public utility service where a notice of strike or lock-out has been served, it is compulsory for Government to refer the dispute for adjudication to these authorities. In other cases, the Government may refer the dispute only when it is satisfied.

Decisions of the Labour Court, Tribunal or National Tribunal are binding on the parties to the dispute. The decisions become enforceable after 30 days of its publication in an official gazette, and remains operative for one year or as reduced or extended by Government. However, the period of the operation of the decision can not be extended by the Government for more than 3 years from the date of its first coming into force. Even after the expiry of extended periods, the decision remains operative unless it is annulled by any party after. two months' notice. The Government may not implement a decision on the ground of social justice or national economic considerations.

Can the Industrial Dispute be resolved voluntarily by the parties?

Parties to a dispute, if they agree, may refer it for arbitration to any person acceptable to both of them. The decision of this arbitrator becomes binding on the parties after its publication in an official gazette by the Government. If the parties do not agree to a single arbitrator, they can select their own arbitrator each and appoint an umpire whose decision will prevail if the arbitrators are divided between themselves.

When does the Labour Court, Tribunal or National Tribunal grant appropriate relief?

During the course of proceedings, if the above staled authorities are satisfied that the dismissal or discharge of a workman was not justified, they may set aside the order of the dismissal or discharge and direct reinstatement of a workman and grant relief as they consider appropriate.

If the employer files an appeal against the decision given in favour of the workman directing his reinstatement, the employer has to pay full wages drawn by the workman last, during the pendency of appeal provided the workman is not employed elsewhere during this period.

Can an employer effect any change in the service condition or a workman any day he desires?

The Act under Section 9A states that no employer can change service conditions of a workman unless:

(i) he has given a notice regarding the proposed change to the workman; and

(ii) the notice is at least of 21 days.

No notice is required if the change is to be effected under an award or settlement; or if it relates to employees under Government rules and regulations.

What are those conditions of service which require notice for change under Section 9A?

Schedule IV to the Act specifies the matters which require service of notice under Section 9A. They include wages, its period and mode of payment; contribution to provident fund, pension fund; compensatory and other allowances; hours of work and rest intervals; leave with wages and holidays; change in shift; classification of grades; withdrawal of customary concession or privilege or change in usage; introduction of new or changes in existing service rules except those under the standing orders; rationalisation; increase or reduction in the number of employees etc.

Employers also cannot bring any change in the service conditions of a workman to prejudice this if any dispute relating to him is pending before any of the authorities under the Act.

In the case of a protected workman also, an employer cannot alter conditions of his service to prejudice him; or discharge or punish him during the pendency of any industrial dispute, without permission of the competent authority. A protected workman means a workman who is member of the executive committee or other office bearer of a registered trade union.

When does a strike or lock-out become illegal?

There are several provisions in the Act according to which a strike or a lock-out is illegal in public utility and non-public utility services.

Illegality of strike and lock-out in Public Utility Services

A strike or lock-out is illegal in a public utility service if it has begun:

(i) without notice to the employer or workman, as the case may be, within six weeks before striking; or

(ii) within 14 days of giving notice; or

(iii) before the expiry of the date of strike; or

(iv) during the pendency of conciliation proceedings and seven days after the conclusion of such
     proceedings.

Illegality of strike and lock-out in general sources i.e. those other than public utility services

A strike or lock-out in non-public utility service is illegal if it is commenced:

(i) during the pendency of conciliation proceedings and seven days after the conclusion of such
    proceedings; or

(ii) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal or arbitrator
     and two months after the conclusion of such proceedings; or

(iii) during the period of operation of a settlement of award.

A workman guilty of participating in an illegal strike can be jailed up to one month and tined up to Rs. 50 or both. Penalty for an illegal lock-out was the same jail terms of one month but the tine can go up to Rs. 1000 or both on an employer. Penalty for instigation to go on illegal strike or declare illegal lock-out and for giving financial aid to them is punishable by imprisonment up to six months or fine up to Rs one thousand or both.

What compensation is payable to a workman when he is laid off?

Lay-off compensation is payable to a workman for the days lay-off except weekly holidays at the rate of 50 per cent of this  basic and dearness pay. Such compensation is payable for a maximum 45 days during a year. The workman can also retrenched after the 45 days.

Lay-off compensation is payable by employers in industrial establishments which are not seasonal or do not work intermittently and employ 50 or more workmen. Only workmen who are on the rolls of the industry are entitled to compensation. He will not be a casual or badli (substituted) worker; he has to have completed one year' s continuous service viz. he has worked not less than 240 days in a calendar year while employed over the ground and 190 days if employed below the ground. To calculate one year's continuous service the period of previous lay- off, period of annual leave with wages availed of by him, the period of his being away from work due to employment injury or the period of maternity leave not exceeding 12 weeks is treated as period of duty.

Under what circumstances is a workman not entitled to lay- off compensation?

A workman is not entitled to lay-off compensation if he:

(i) refuses to accept alternative employment offered by an employer in the same or another
    establishment within five miles from the establishment to which he belonged provided that
    employment does not require any special skill;

(ii) does not present himself for work at the establishment at the appointed time once every day during
     working hours; and

(iii) the lay-off has arisen due to strike or go-slow on the part of the workman.

Note: In an establishment employing 300 or more workmen, a workman cannot be laid off by the employer unless permitted by the Government, and unless it is due to natural calamity or shortage of power. The Government has to reply to the employer within two months of his applying for permission as after expiry of this period the permission will be deemed to have been obtained.

What is the procedure for retrenchment of a workman?

A workman who has completed one year's continuous service can be retrenched by an employer only if:

(I) The workman has been given one month's notice or one month's wages in lieu of notice;

(2) He has been paid compensation at the rate of 15 days wages for each completed year of service.
     A period exceeding six months will be counted as one year; and

(3) Notice has been given to the Government, by the employer, as specified by the concerned
     Government.

Note: Industrial establishments employing 300 or more workmen cannot retrench a workman unless they have given 3 months notice in writing or wages in lieu and have obtained prior permission of the Government. The Government should reply to such notice within 3 months from the date of service of the notice otherwise the permission to retrench the workman is taken as obtained by the employer.

Retrenchment of workmen due to closure or transfer of ownership of establishment also entitles them to retrenchment compensation. However, if the closure was necessitated by circumstances beyond employer's control, the compensation does not exceed 3 months wages. Financial or commercial limitations do not amount to situations beyond control. A 60-day notice has to be given stating the reason for closure of an undertaking.

Can an employer retrench any workman as he desires?

No, an employer is required to follow the prescribed procedure to a workman. Retrenchment is to be made on the last come first go basis. The workman to be retrenched first, is the person appointed as the last workman prior to retrenchment. When employment has to be offered the first offer has to be the person who was retrenched first. Retrenched workmen and their union have to be informed by the employer by registered post regarding the offer of re-employment.

What are Unfair Labour Practices?

Unfair Labour Practices have been specified in the 5th schedule to the Industrial Disputes Act The Act stipulates that no employer, workman, trade union whether registered under the Trade Unions Act, 1926 or not, can commit any unfair labour practice. In case a person is found guilty of unfair practice, he can be punished with imprisonment up to 6 months or with fine up to Rs.1000 or both.

Un fair Labour Practices (ULP) has been divided into two parts as under:

1. ULP on the part of employers and   :
    their trade unions                          :         Annexure
2. ULP on the part of workmen and     :
    their trade unions                          :

Miscellaneous

How is a Domestic enquiry conduced?

According to the principle of natural justice, the workman mst be given proper opportunity to defend himself. To hold a Domestic Enquiry it is essential that the employer follow these procedures:

(1) the employer should appoint an Enquiry Officer who should be an unbiased person. He should
     not be an interested party in the dispute nor should he bring extraneous issues in the matter.

(2) the Enquiry Office should be an honest person and should hold the enquiry honestly. He should
     not only impart justice but must also appear to be so.

(3) The enquiry should be held in proper manner and not appear a formality.

(4) Charges levelled against the workman should be communicated to him in a charge sheet.

(5) Witness/Evidences should be examined in his presence. He should be able to cross examine
     the witness.

(6) The employee should be given all opportunity to defend himself.

(7) If the employee does not cooperate, the Enquiry Office can proceed with the enquiry without his
     participation.

(8) If there are criminal proceedings like for theft, assault against him in a Court, the Enquiry Officer
     need not wail for their disposal unless they are of serious import.

(9) Enquiry should be conducted as certified under the Standing Orders. If no procedure is prescribed,
     a notice should be given to the employee to prepare himself for defence.

(10) The employee CM be permitted to engage a co-employee to assist him in the enquiry .

(11) The proceedings of the enquiry should be recorded by the Enquiry Officer and should be signed
       by the parties on its being adjourned.

(12) Enquiry should be held, conducted or adjourned as decided by the Enquiry Officer. But there
       should be due flexibility in all respects in the course of enquiry.

 13) Enquiry Officer should prepare his report and record his conclusion clearly, unambiguously and
       precisely.

(14) Enquiry Officer should submit his report to the employer for further necessary action in accordance
       with the report.

Is a workman entitled to recover the amount due to him from the employer?

A workman whose money is due from the employer can himself or through any other authorised representative (in writing) recover the due money from the employer. If the employer fails to pay the money, the State Government should issue a certificate on whose basis the collector will recover the money as arrears of land revenue. Application for recovery of money should be made within one year from the date of its becoming due. This period can be relaxed by the Government. Money due to a deceased worker can be recovered by his Iegal heir.