Factories Act

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FACTORIES ACT, 1948

UNIT-I

The Factories Act, 1948 provides safeguard for workers to protect health, provides for
safety at the workplace when dealing with machinery, improves the physical conditions of
the workplace, and provides welfare amenities. Only factories are covered by the Act.

The Act also restricts the hours of work, provides for overtime and spread of working
hours, and employment of young persons and women.[25]

Night Shifts and women

In general, the act prohibits employment of women in night shift. The Act has been recently
amended to allow work in night shift by women in certain sectors including the Special
Economic Zone (SEZ), IT sector and Textiles. This is subject to the condition that the
employers shall be obligated to provide adequate safeguards in the workplace, equal
opportunity, their transportation from the factory premises to the nearest point of their
residence. [26] (Section 66)

Prohibitions on Employment of Women on or Near Machineries in Motion

The Act indirectly bans employment of women workers on or near machineries in motion.
It lays down that where in any factory it becomes necessary to examine any part of
machinery referred to in Section 21, while the machinery is in motion, such examination
shall be carried out only by a specially trained adult male worker. (Section 22)

Also, it provides that no woman shall be allowed to clean, lubricate or adjust any part of a
prime mover or of any transmission machinery while the prime mover or transmission
machinery is in motion, if that would expose the woman to risk of injury from any moving
part either of that machine or of any adjacent machinery. (Section 22)

Furthermore, it provides that no woman shall be employed in any part of a factory for
pressing cotton in which a cotton-opener is at work. (Section 27)

Maternity Leave and Creche Facility

The Act makes provision for maternity leave with wages for expecting mothers for a
maximum period of 12 weeks. (Section 79)

The Act provides that every factory with more than 30 women employees shall provide and
maintain suitable room/s and feeding breaks and free milk or refreshment or both for
children below 6 years for these women. (Section 48)

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Health and Safety Provisions under Factories Act, 1948

A. HEALTH

There are various measures under Factories Act 1948 which are taken by factories for
health, safety and welfare of their workers. Such measures are provided under Chapters III,
IV and V of the Act which are as follows:

Chapter III of the Act deals with the following aspects.

(i) Section 11 ensures the cleanliness in the factory. It must be seen that a factory is
kept clean and it is free from effluvia arising from any drain, privy or other nuisance. The
Act has laid down following provisions in this respect :

1. All the accumulated dirt and refuse on floors, staircases and passages in the factory
shall be removed daily by sweeping or by any other effective method. Suitable
arrangements should also be made for the disposal of such dirt or refuse.

2. Once in every week, the floor should be thoroughly cleaned by washing with
disinfectant or by some other effective method [Section 11(1)(b)].

3. Effective method of drainage shall be made and maintained for removing water, to
the extent possible, which may collect on the floor due to some manufacturing
process.

4. To ensure that interior walls and roofs, etc. are kept clean, it is laid down that: (i)
white wash or color wash should be carried at least once in every period of 14
months; (ii) where surface has been painted or varnished, repair or revanish
should be carried out once in every five years, if washable then once in every period
of six months; (iii) where they are painted or varnished or where they have smooth
impervious surface, it should be cleaned once in every period of 14 months by such
method as may be prescribed.

5. All doors, windows and other framework which are of wooden or metallic shall be
kept painted or varnished at least once in every period of five years.

6. The dates on which such processes are carried out shall be entered in the prescribed
register. If the State Government finds that a particular factory cannot comply with
the above requirements due to its nature of manufacturing process, it may exempt
the factory from the compliance of these provisions and suggest some alternative
method for keeping the factory clean. [Section 11(2)]

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(ii) Disposal of waste and effluents

Every occupier of a factory shall make effective arrangements for the treatment of wastes
and effluents due to the manufacturing process carried on in the factory so as to render
them innocuous and for their disposal. Such arrangements should be in accordance with
the rules, if any, laid down by the State Government. If the State Government has not laid
down any rules in this respect, arrangements made by the occupier should be approved by
the prescribed authority if required by the State Government. (Section 12)

(iii) Ventilation and temperature

Section 13 provides that every factory should make suitable and effective provisions for
securing and maintaining :-

1. adequate ventilation by the circulation of fresh air; and

2. such a temperature as will secure to the workers reasonable conditions of comfort


and prevent injury to health. What is reasonable temperature depends upon the
circumstances of each case. The State Government has been empowered to lay down
the standard of adequate ventilation and reasonable temperature for any factory or
class or description of factories or parts thereof. It may direct that proper measuring
instruments at such places and in such position as may be specified shall be
provided and prescribed records shall be maintained.

Measures to reduce excessively high temperature: To prevent excessive heating of any


workroom following measures shall be adopted:

1. Walls and roofs shall be of such materials and so designed that reasonable
temperature does not exceed but kept as low as possible.

2. Where the nature of work carried on in the factory generates excessively high
temperature, following measures should be adopted to protect the workers:
(a) by separating such process from the workroom; or
(b) insulating the hot parts; or
(c) adopting any other effective method which will protect the workers.

3. The Chief Inspector is empowered to direct any factory to adopt such methods
which will reduce the excessively high temperature. In this regard, he can specify the
measures which in his opinion should be adopted. (Section 13)

(iv) Dust and fume

There are certain manufacturing processes like chemical, textile or jute, etc., which
generates lot of dust, fume or other impurities. It is injurious to the health of workers
employed in such manufacturing process. Following measures should be adopted in this
respect:

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 Effective measures should be taken to prevent the inhalation and accumulation of
dust, fumes etc., in the work-rooms.

 Wherever necessary, an exhaust appliances should be fitted, as far as possible, to the


point of origin of dust fumes or other impurities. Such point shall also be enclosed as
far as possible.

 In stationery internal combustion engine and exhaust should be connected into the
open air.

 In cases of other internal combustion engine, effective measures should be taken to


prevent the accumulation of fumes there from. (Section 14) It may be pointed that
the evidence of actual injury to health is not necessary. If the dust or fume by reason
of manufacturing process is given off in such quantity that it is injurious or offensive
to the health of the workers employed therein, the offence is committed under this
Section. Lastly the offence committed is a continuing offence. If it is an offence on a
particular date is does not cease to be an offence on the next day and so on until the
deficiency is rectified.

(v) Artificial humidification

Humidity means the presence of moisture in the air. In certain industries like cotton, textile,
cigarette, etc., higher degree of humidity is required for carrying out the manufacturing
process. For this purpose, humidity of the air is artificially increased. This increase or
decrease in humidity adversely affects the health of workers.

Section 15(1) empowers the State Government to make rules (i) prescribing the standards
of humidification, (ii) regulating methods to be adopted for artificially increasing the
humidity of the air, (iii) directing prescribed tests for determining the humidity of the air to
be correctly carried out, and recorded, and (iv) prescribing methods to be adopted for
securing adequate ventilation and cooling of the air in the work-room.

Section 15(2) lays down that water used for artificial humidification should be either
purified before use or obtained from a public supply or other source of drinking water.
Where the water is not purified as stated above. Section 15(3) empowers the Inspector to
order, in writing, the manager of the factory to carry out specified measures, before a
specified date, for purification of the water.

(vi) Overcrowding

Overcrowding in the work-room not only affect the workers in their efficient discharge of
duties but their health also. Section 16 has been enacted with a view to provide sufficient
air space to the workers.
(1) Section 16(1) prohibits the overcrowding in the work-rooms to the extent it is injurious
to the health of the workers.

(2) Apart from this general prohibition Section 16(2) lays down minimum working space
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for each worker as 14.2 cubic meters of space per worker in every workroom.
For calculating the work area, the space more than 4.2 meters above the level of the floor,
will not be taken into consideration.

Posting of notice: Section 16(3) empowers the Chief Inspector who may direct in writing
the display of a notice in the work-room, specifying the maximum number of workers
which can be employed in that room. According to Section 108, notice should be in English
and in a language understood by the majority of the workers. It should be displayed at
some conspicuous and convenient place at or near, the entrance. It should be maintained in
clean and legible conditions.

Exemptions : The chief Inspector may by order in writing, exempt any work-room from the
provisions of this section, subject to such conditions as he may think fit to impose, if he is
satisfied that non-compliance of such provision will have no adverse effect on the health of
the workers employed in such work-room.

(vii) Lighting

Section 17 of the Factories Act makes following provisions in this respect:

 every factory must provide and maintain sufficient and suitable lighting, natural,
artificial or both, in every part of the factory where workers are working or passing;

 all the glazed windows and sky lights should be kept clean on both sides;

 effective provisions should be made for the prevention of glare from a source of light
or by reflection from a smooth or polished surface;

 formation of shadows to such an extent causing eye-strain or the risk of accident to


any worker, should be prevented; and

 the state government is empowered to lay down standard of sufficient and suitable
lighting for factories for any class or description of factories or for any
manufacturing process.

(viii) Drinking water

Section 18 makes following provisions with regard to drinking water.

 every factory should make effective arrangements for sufficient supply of drinking
water for all workers in the factory;

 water should be wholesome, i.e., free from impurities;

 water should be supplied at suitable points convenient for all workers;

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 no such points should be situated within six meters of any washing place, urinals,
latrine, spittoon, open drain carrying sullage or effluent or any other source of
contamination, unless otherwise approved in writing by the Chief Inspector;

 all such points should be legible marked Drinking Water in a language understood
by majority of the workers;

 in case where more than 250 workers are ordinarily employed, effective
arrangements should be made for cooling drinking water during hot weather. In
such cases, arrangements should also be made for the distribution of water to the
workers; and

 the State Government is empowered to make rules for the compliance of above
stated provisions and for the examination, by prescribed authorities, of the supply
and distribution of drinking water in factories.

 Latrines and urinals


Every factory shall make suitable arrangement for the provision of latrines and
urinals for the workers. These points as stated below, are subject to the provisions of
Section 19 and the rules laid down by the State Government in this behalf.

(8) the State Government is empowered to make rules in respect of following:

 prescribing the number of latrines and urinals to be provided to proportion to the


number of male and female workers ordinarily employed in the factory.

 any additional matters in respect of sanitation in factories;

 responsibility of the workers in these matters.

B. SAFETY

Chapter IV of the Act contains provisions relating to safety. These are discussed below:

(i) Fencing of machinery

Fencing of machinery in use or in motion is obligatory under Section 21. This Section
requires that following types of machinery or their parts, while in use or in motion, shall be
securely fenced by safeguards of substantial construction and shall be constantly
maintained and kept in position, while the parts of machinery they are fencing are in
motion or in use. Such types of machinery or their parts are:

1. every moving parts of a prime-mover and flywheel connected to a prime-mover. It is


immaterial whether the prime-mover or fly-wheel is in the engine house or not;

2. head-race and tail-race of water wheel and water turbine;

3. any part of stock-bar which projects beyond the head stock of a lathe;
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4. every part of an electric generator, a motor or rotary converter or transmission
machinery unless they are in the safe position;

5. every dangerous part of any other machinery unless they are in safe position.

(ii) Safety measures in case of work on or near machinery in motion

Section 22 lays down the procedure for carrying out examination of any part while it is in
motion or as a result of such examination to carry out the operations mentioned under
clause (i) or (ii) of the proviso to Section 21(1). Such examination or operation shall be
carried out only by specially trained adult male worker wearing tight fitting clothing (which
shall be supplied by the occupier) whose name has been recorded in the register prescribed
in this behalf and who has been furnished with a certificate of appointment and while he is
so engaged.

No woman or young person shall be allowed to clean, lubricate or adjust any part of a
prime-mover or any transmission machinery while the prime-mover or transmission
machinery is in motion or to clean, lubricate or adjust any part of any machine if the
cleaning, lubrication and adjustment thereof would expose the woman or the young person
to risk of injury from any moving part either of that machine or of any adjacent machinery
[Section 22(2)].

(iii) Employment of young persons on dangerous machines

Section 23 provides that no young person shall be required or allowed to work at any
machine to which this section applies unless he has been fully instructed as to dangers
arising in connection with the machine and the precautions to be observed and (a) has
received sufficient training in work at the machine, or (b) is under adequate supervision by
a person who has a thorough knowledge and experience of the machine.

(iv) Striking gear and devices for cutting off power

Section 24 provides that in every factory suitable striking gears or other efficient
mechanical appliances shall be provided and maintained and used to move driving belts to
and from fast and loose pulleys which form part of the transmission machinery and such
gear or appliances shall be so constructed, placed and maintained as to prevent the belt
from creeping back on the fast pulley. Further, driving belts when not in use shall not be
allowed to rest or ride upon shafting in motion.

Suitable devices for cutting off power in emergencies from running machinery shall be
provided and maintained in every work-room in every factory. It is also provided that when
a device which can inadvertently shift from ‘off’ to ‘on position in a factory’, cutoff power
arrangements shall be provided for locking the devices on safe position to prevent
accidental start of the transmission machinery or other machines to which the device is
fitted.

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(v) Self-acting machines

Section 25 provides further safeguard for workers from being injured by self-acting
machines. It provides that no traverse part of self-acting machine in any factory and no
material carried thereon shall, if the space over which it runs is a space over which any
person is liable to pass whether in the course of his employment or otherwise, be allowed
to run on its outward or inward traverse within a distance of forty five centimeters from
any fixed structure which is not part of the machines.

However, Chief Inspector may permit the continued use of a machine installed before the
commencement of this Act, which does not comply with the requirement of this section, on
such conditions for ensuring safety, as he may think fit to impose.

(vi) Casing of new machinery

Section 26 provides further safeguards for casing of new machinery of dangerous nature. In
all machinery driven by power and installed in any factory

(a) every set screw, bolt or key on any revolving shaft, spindle, wheel or pinion shall be so
sunk, encased or otherwise effectively guarded as to prevent danger;

(b) all spur, worm and other toothed or friction gearing which does not require frequent
adjustment while in motion, shall be completely encased unless it is so situated as to be so
safe as it would be if it were completely encased.

The section places statutory obligation on all persons who sell or let on hire or as agent of
seller or hire to comply with the section and in default shall be liable to punishment with
imprisonment for a term which may extend to 3 months or with fine which may extend to
Rs. 500 or with both.

(vii) Prohibition of employment of woman and children near cotton openers

According to Section 27, no child or woman shall be employed in any part of factory for
pressing cotton in which a cotton opener is at work. However, if the feed-end of a cotton
opener is in a room separated from the delivery end by a partition extending to the roof or
to such height as the inspector may in any particular case specify in writing, women and
children may be employed on the side of partition where the feed-end is situated.

(viii) Hoists and lifts

Section 28 provides that in every factory:

(i) every hoist and lift shall be of good mechanical construction, sound material and
adequate strength. It shall be properly maintained and thoroughly examined by a
competent person at least once in every period of six months and a register shall be kept
containing the prescribed particulars of every such examination,

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(ii) every hoist way and lift way shall be sufficiently protected by an enclosure fitted with
gates and the hoist or lift and every such enclosure shall be so constructed as to prevent any
person or thing from being trapped between any part of the hoist or lift and any fixed
structure or moving part,

(iii) the maximum safe working load shall be marked on every hoist or lift and no load
greater, than such load shall be marked on every hoist or lift and no load greater than such
load shall be carried thereon,

(iv) the cage of every hoist and lift shall be fitted with a gate on each side from which access
is afforded to a landing,

(v) such gates of the hoist and lift shall be fitted with interlocking or other efficient device
to secure that the gate cannot be opened except when the cage is at the landing and that the
cage cannot be moved unless the gate is closed.

(ix) Lifting machines, chains, ropes and lifting tackles

In terms of Section 29, in any factory the following provisions shall be complied with
respect of every lifting machine (other than a hoist and lift) and every chain, rope and
lifting tackle for the purpose of raising or lowering persons, goods or materials:

(a) all parts including the working gear, whether fixed or movable, shall be
(i) of good construction, sound material and adequate strength and free from defects;
(ii) properly maintained;
(iii) thoroughly examined – by a competent person at least once in every period of 12
months or at such intervals as Chief Inspector may specify in writing and a register shall be
kept containing the prescribed particulars of every such examination;

(b) no lifting machine or no chain, rope or lifting tackle, shall, except for the purpose of test,
be loaded beyond the safe working load which shall be plainly marked thereon together
with an identification mark and duly entered in the prescribed register and where it is not
practicable, a table showing the safe working loads of every kind and size of lifting machine
or chain, rope or lifting tackle in use shall be displayed in prominent positions on that
premises;

(c) while any person is employed or working on or near the wheel track of a travelling
crane in any place where he would be liable to be struck by the crane, effective measures
shall be taken to ensure that the crane does not approach within 6 meters of that place

(x) Safety measures in case of use of revolving machinery

Section 30 of the Act prescribes for permanently affixing or placing a notice in every factory
in which process of grinding is carried on. Such notice shall indicate maximum safe working
peripheral speed of every grindstone or abrasive wheel, the speed of the shaft or spindle
upon such shaft or spindle necessary to secure such safe working peripheral-speed. Speed
indicated in the notice shall not be exceeded and effective measures in this regard shall be
taken.
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(xi) Pressure plant

Section 31 provides for taking effective measures to ensure that safe working pressure of
any plant and machinery, used in manufacturing process operated at pressure above
atmospheric pressure, does not exceed the limits. The State Government may make rules to
regulate such pressures or working and may also exempt any part of any plant or
machinery from the compliance of this section.

(xii) Floor, stairs and means of access

Section 32 provides that in every factory

(a) all floors, steps, stairs passages and gangways shall be of sound construction and
properly maintained and shall be kept free from obstruction and substances likely to cause
persons to slip and where it is necessary to ensure safety, steps, stairs passages and
gangways shall be provided with substantial handrails,

(b) there shall, be so far as is reasonably practicable, be provided, and maintained safe
means of access of every place at which any person is at any time required to work;

(c) when any person has to work at a height from where he is likely to fall, provision shall
be made, so far as is reasonably, practicable, by fencing or otherwise, to ensure the safety of
the person so working.

(xiii) Pits, openings in floors etc.

Section 33 requires that in every factory every fixed vessel, sump, tank, pit or opening in the
ground or in a floor which, by reason of its depth, situation, construction, or contents is or
may be source of danger shall be either securely covered or securely fence. The State
Government may exempt any factory from the compliance of the provisions of this Section
subject to such conditions as it may prescribe.

(xiv) Excessive weights

Section 34 provides that no person shall be employed in any factory to lift, carry or make
any load so heavy as to be likely to cause him injury. The State Government may make rules
prescribing the maximum weights which may be lifted, carried or moved by adult men,
adult women, adolescents and children employed in factories or in any class or description
of factories or in carrying on any specified process.

(xv) Protection of eyes

Section 35 requires the State Government to make rules and require for providing the
effective screens or suitable goggles for the protection of persons employed on or in
immediate vicinity of any such manufacturing process carried on in any factory which
involves (i) risk of injury to the eyes from particles or fragments thrown off in the course of
the process or; (ii) risk to the eyes by reason of exposure to excessive light.

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(xvi) Precautions against dangerous fumes, gases etc.

Section 36 provides (1) that no person shall be required or allowed to enter any chamber,
tank, vat, pit, pipe, flu or other confined space in any factory in which any gas, fume, vapor
or dust is likely to be present to such an extent as to involve risk to persons being overcome
thereby, unless it is provided with a manhole of adequate size or other effective means of
egress.
(2) No person shall be required or allowed to enter any confined space as is referred to in
sub-section (1), until all practicable measures have been taken to remove any gas, fume,
vapor or dust, which may be present so as to bring its level within the permissible limits
and to prevent any ingress of such gas, fume, vapor and unless:
(a) a certificate in writing has been given by a competent person, based on a test carried
out by himself that the space is reasonably free from dangerous gas, fume, vapor or dust; or
(b) such person is wearing suitable breathing apparatus and a belt securely attached to a
rope, the free end of which is held by a person outside the confined space.

(xvii) Precautions regarding the use of portable electric light

Section 36A of the Act provides that in any factory (1) no portable electric light or any other
electric appliance of voltage exceeding 24 volts shall be permitted for use inside any
chamber, tank, vat, pit, pipe, flu or other confined space unless adequate safety devices are
provided; and (2) if any inflammable gas, fume or dust is likely to be present in such
chamber, tank, vat, pit, pipe, flu or other confined space unless adequate safety devices are
provided, no lamp or light other than that of flame proof construction shall be permitted to
be used therein.

(xviii) Explosive or inflammable dust gas, etc.

Sub-section (1) of section 37 of the Act provides that in every factory where any
manufacturing process produces dust, gas, fume or vapor of such character and to such
extent to be likely to explode on ignition, all practicable measures shall be taken to prevent
any such explosion by (a) effective enclosure of the plant or machinery used in the process
(b) removal or prevention of the accumulation of such dust, gas fume or vapor, and (c)
exclusion or effective enclosure of all possible sources of ignition.

(xix) Precautions in case of fire

Section 38 provides that in every factory all practicable measures shall be taken to outbreak
of fire and its spread, both internally and externally and to provide and maintain (a) safe
means of escape for all persons in the event of fire, and (b) the necessary equipment and
facilities for extinguishing fire.
Effective measures shall be taken to ensure that in every factory all the workers are familiar
with the means of escape in case of fire and have been adequately trained in the outline to
be followed in such case.

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(xx) Power to require specification of defective parts or test to stability

Section 39 states that when the inspector feels that the conditions in the factory are
dangerous to human life or safety he may serve on the occupier or manager or both notice
in writing requiring him before the specified date to furnish such drawings, specifications
and other particulars as may be necessary to determine whether such building, machinery
or plant can be used with safety or to carry out such test in such a manner as may be
specified in the order and to inform the inspector of the results thereof.

(xxi) Safety of buildings or machinery

Section 40 provides that the inspectors in case of dangerous conditions of building or any
part of ways, machinery or plant requires the manager or occupier or both to take such
measures which in his opinion should be adopted and require them to be carried out before
a specified date. In case the danger to human life is immediate and imminent from such
usage of building, ways of machinery he may order prohibiting the use of the same unless it
is repaired or altered.

(xxii) Maintenance of buildings

Section 40-A provides that if it appears to the inspector that any building or part of it is in
such a state of disrepair which may lead to conditions detrimental to the health and welfare
of workers he may serve on the manager or occupier or both, an order in writing specifying
the measures to be carried out before a specified date.

(xxiii) Safety officers

Section 40-B provides that in every factory (i) where 1,000 or more workers are ordinarily
employed or (ii) where the manufacturing process or operation involves risk of bodily
injury, poisoning or disease or any other hazard to health of the persons employed therein,
the occupier shall employ such number of safety officers as may be specified in the
notification with such duties and qualifications and conditions of service as may be
prescribed by State
Government.

(xxiv) Power to make rules to supplement this Chapter.

This is vested in the State Government under Section 41 for such devices and measures to
secure the safety of the workers employed in the factory.

Date: August 2, 2016Author: Harpreet Kaur & Apurva Rathee 1 Comment


By Apurva Rathee, Advocate
Introduction

Children need to grow in an environment that enables them to lead a life of freedom and
dignity. Opportunities for education and training are to be provided for them to enable
them to grow into responsible and responsive citizens. Unfortunately a large proportion of
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children are deprived of their basic rights. They are found working in various sectors of the
economy particularly in the unorganized sector. Some of them are confined and beaten,
reduced to slavery or denied the guaranteed fundamental right of access to free and
compulsory education thus making child labour a human rights issue and a developmental
issue.[1]

The problem of child labour is a universal phenomenon. It existed in one form or another
since historic times. The problem is significantly more acute in the developing than in the
developed nations where stringent laws governing the employment of children exist and
are implemented effectively.[2] Child labour is a harsh reality in India. Despite the
provisions of restrictive labour laws the practice continues unabated because employment
of child labour is advantageous to employers and an economic compulsion to parents of
child workers.[3] Child labourers are exploited, exposed to hazardous work conditions and
paid a pittance for their long hours of work. Forced to forego education, shouldering
responsibilities far beyond their years, becoming worldly-wise when their peers have yet to
leave the cocoons of parental protection, these children never know what childhood is.[4]

The Child Labour (Prohibition and Regulation) Act, 1986 is in place to fight against the
problem of child labour in our country. As the law was found to be lacking, the Government
decided to amend the Act. The amendments were first introduced in 2012, thereupon in
2015 and finally it is in on the 29th July 2016 that the Child Labour (Prohibition and
Regulation) Amendment Bill, 2016 has received the assent of the President.

CHILD LABOUR – SALIENT FEATURES OF THE CHILD LABOUR (PROHIBITION AND


REGULATION) ACT `986

Definition of Child Labour

Child labour is conventionally defined to include all ‘economically active’ children in the age
group 5-14 years. A person is treated as economically active or gainfully employed if she/he
does work on a regular basis and receives remuneration for it. The ILO defines ‘child
labour’ as “work that deprives children of their childhood and their dignity, which hampers
their access to education and the acquisition of skills, and which is performed under
deplorable conditions harmful to their health and their development.”

Child work, on the other hand, includes all paid and unpaid work for the household or for
the market, whether it is full-time or part-time. Participation in household activities on a
regular basis and for several hours in a day to relieve adults for wage employment is also
included in this definition. The ILO, however, argues that it is not concerned with children
helping in family farms or doing household chores.[

The Child Labour (Prohibition and Regulation) Act, 1986 is one the most debated acts
regarding children in India. It outlines where and how children can work and where they
can not. The provisions of the act are meant to be acted upon immediately after the
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publication of the act, except for part III that discusses the conditions in which a child may
work. Part III can only come into effect as per a date appointed by the Central Government
(which was decided as 26th of May, 1993).

The act defines a child as any person who has not completed his fourteenth year of age. Part
II of the act prohibits children from working in any occupation listed in Part A of the
Schedule; for example: Catering at railway establishments, construction work on the
railway or anywhere near the tracks, plastics factories, automobile garages, etc. The act also
prohibits children from working in places where certain processes are being undertaken, as
listed in Part B of the Schedule; for example: beedi making, tanning, soap manufacture,
brick kilns and roof tiles units, etc. These provisions do not apply to a workshop where the
occupier is working with the help of his family or in a government recognised or aided
school.

The act calls for the establishment of a Child Labour Technical Advisory Committee (CLTAC)
who is responsible for advising the government about additions to the Schedule lists.

Part III of the act outlines the conditions in which children may work in
occupations/processes not listed in the schedule. The number of hours of a particular kind
of establishment of class of establishments is to be set and no child can work for more than
those many hours in that particular establishment. Children are not permitted to work for
more than three hour stretches and must receive an hour break after the three hours.
Children are not permitted to work for more than six hour stretches including their break
interval and can not work between the hours of 7 p.m. and 8 a.m. No child is allowed to
work overtime or work in more than one place in a given day. A child must receive a holiday
from work every week. The employer of the child is required to send a notification to an
inspector about a child working in their establishment and keep a register of all children
being employed for inspection.

If there is a dispute as to the age of the child, the inspector can submit the child for a
medical exam to determine his/her age when a birth certificate is not available. Notices
about prohibition of certain child labour and penalties should be posted in every railway
station, port authority and workshop/establishment.

The health conditions of work being undertaken by children shall be set for each particular
kind of establishment of class of establishments by the appropriate government. The rules
may cover topics such as cleanliness, light, disposal of waste and effluents, drinking water,
bathrooms, protection of eyes, maintenance and safety of buildings, etc.

Section IV of the act outlines various remaining aspects such as Penalties. The penalty of
allowing a child to work in occupations/ processes outlined in the schedule which are
prohibited is a minimum of 3 months prison time and/or a minimum of Rs. 10,000 in fines.
Second time offenders are subject to jail time of minimum six months. Failure to notify an
inspector, keep a register, post a sign or any other requirement is punishable by simple
imprisonment and/or a fine up to Rs. 10,000. Offenders can only be tried in courts higher
than a magistrate or metropolitan magistrate of the first class. Courts also have the
authority to appoint people to be inspectors under this act.

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Rules of this act must be passed by the respective parliaments (state or central). Any
changes or added provisions must be passed by the parliament. The establishment of this
act also calls for a change in a number of other acts. The Employment of Children Act of
1938 is repealed. The enactment of this act changes the definition of child to one who has
not completed his fourteenth year of age. Hence under provisions of this act the age of a
child is also changed in the Minimum Wages Age 1948, the Plantations Labour Act 1951,
the Merchant Shipping Act 1958, and the Motor Transport Workers Act 1961.

Salient Features of The Child Labour (Prohibition and Regulation) Act, 1986

The Child Labour (Prohibition and Regulation) Act, 1986 was the culmination of effort and
ideas that emerged from the deliberations and recommendations of various committees on
child labour. Significant among them are the National Commission on Labour (1966-69),
Gurupadaswamy Committee on Child Labour (1979), Sanat Mehta Committee (1984) and
others.

Prohibition of children in certain occupations and processes (Section 3)

Section 3 of the Act provides for certain employments in which there is a prohibition on
employment of children. It states that, “No child shall be employed or permitted to work in
any of the occupations set forth in Part A of the Schedule or in any workshop wherein any
of the processes set forth in Part B of the Schedule is carried on.”

 Occupation set forth in Part A (18 entries) (transport, construction, Railways, Ports,
Crackers and firework industries, slaughter houses, automobile workshops &
garages explosives, handloom, mines, plastic units. Diving was added in 2008
Amendment and circus and caring for elephants in the 2010 Amendment.

 Processes set forth in part B (65 entries) Bidi making, Carpet weaving, mica cutting,
lead factory, oil expelling, Brick kilns, manufacturing of glass, zari, electroplating etc.
In 2008 Amendment a further eight processes were added to the list, example,
processes involving exposure to excessive heat (like working near furnaces) and
cold, food processing and beverage industry, etc.

 Exemption clause: The Second Para of Sec. 3 provides exemption of occupation &
workshop engaging the child if on two grounds namely:-

 To workshop where in any of the processes set forth in Part B is carried out by the
occupier with the aid of his family.

 To any school established by or receiving assistance or recognition from the


government

In the landmark case of M. C. Mehta v. State of Tamil Nadu,[19] the Supreme Court
observed that despite the constitutional mandates, the stark reality in our country children
are an exploited lot, especially as labour. Sivakasi was one of the worst offenders in terms of
employing children in contradiction to the Child Labour (Prohibition and Regulation) Act.
Mr. M. C. Mehta invoked the power of the Supreme Court under Art. 32, against the violation
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of the fundamental rights of children as provided under Art. 24 of the Constitution. It was
noted that as on 31st December 1985, there were 221 registered match factories employing
27,338 workmen of whom 2941 were children. The Court also noted that the manufacture
of matches and fireworks is a hazardous industry, giving rise to fatal accidents. So, keeping
in view, the provisions of Art. 39 (f) and 45 of the Constitution, it gave certain directions as
to how the quality of life of children employed in the factories could be improved. The court
also constituted a committee to oversee the directions given.

The Apex Court examined the magnitude of the problem, considered constitutional
mandates, international commitments and statutory provisions. The Court also considered
the working of the provisions of the Child Labour (Prohibition and Regulation) Act, 1986. It
held that there are a number of loopholes in the Act, one of them is that children can
continue to work if they are a part of a family of labourers. Also, the Act does not use the
word ‘hazardous’ anywhere, the implication of which is that children may continue to work
in those processes not involving chemicals. It is impractical and unrealistic to draw a
distinction between hazardous and non-hazardous processes in a particular industry. What
is required is to list the whole industry as banned for child labour, which would make the
task of enforcement simpler and strategies of evasion more difficult.[20]

The Supreme Court has taken certain pragmatic steps towards effective implementation of
the policy. They are:

1. Survey for identification of working children.

2. Withdrawal of children working in hazardous industries and ensuring their


education in appropriate institutions.

3. The offending employer must be asked to pay compensation of Rs. 20,000/- for
every child employed in contravention of the provisions of the Act. The liability of
the employer would not cease even if he would disengage the child employed.

4. The sum so collected should be deposited in a fund to be known as Child Labour


Rehabilitation-cum-Welfare Fund. The Fund shall form a corpus whose income shall
be used only for the education, health, safety and welfare of the concerned child. To
generate greater income, the fund can be deposited in a high yielding scheme of any
nationalized bank or other public body.

5. As the aforesaid income would not be enough to dissuade the parent/guardian to


seek employment of the child, the State owes a duty to discharge its obligation. It
should provide a job to an adult member of the family, whose child was employed in
a hazardous industry.

6. In cases where it would not be possible to provide a job, the Government would, as
its contribution grant, deposit in the Child Labour Rehabilitation-cum-Welfare Fund
a sum of Rs. 5000/- for each child employed in a factory or mine or in any other
hazardous employment.

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7. In either of the cases whether a job is provided to an adult member of the child’s
family in lieu of the child or not, the child shall not be required to work.

8. In cases where alternative employment could not be made available as aforesaid, the
parent/guardian of the concerned child would be paid the income, which would be
earned on the corpus of Rs. 25,000/- for each child, every month. The employment
given or payment made would cease to be operative if the child would not be sent by
the parent/guardian for education.

9. The National Child Labour Policy announced by the Government of India has already
identified some industries for priority action.

10. A district could be the unit of collection so that the executive head of the district
keeps a watchful eye on the work of the Inspectors.

11. With regard to non-hazardous jobs, the Inspectors shall have to see that the working
hours of the children are not more than four to six hours a day and that they receive
education at least for two hours each day. It would also be seen that the entire cost
of education is borne by the employer.[21]

Amendment to the Schedule (Section 4)

Section 4 of the Act empowers the central government that it may add any occupation or
process in the schedule mentioned in Sec 3. But this addition is done by the Central
Government, after giving not less than 3 month’s notice of its intention to do so.

The Amendment Act of 2006, added 2 more clauses to part A of the schedule namely.

(14) Employment of child as domestic worker or servant.

(15) Employment of child in dhabas (roadside eateries, tea stall, restaurants etc.)

The said amendment is an outcome of notification date Aug 1, 2006 which came into effect
on Oct 1, 2006. These entries were added because the Technical Advisory Committee of
Child Labour found such employment to be hazardous in nature since mostly it results into
physical, psychological and sexual abuse. The matter is of great concern and it goes
unnoticed because the offence on such children is advanced within the four walls of
employment institution.

Amendment Bill, 2012:

The Child Labour (Prohibition and Regulation) Amendment Bill, 2012 was introduced in
the Rajya Sabha on December 4, 2012 by the Minister of Labour and Employment,
Mallikarjun Kharge.

The recommendation forwarded by the standing committee are:

 Change of the title of the Act:


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“The Child and Adolescent Labour (Prohibition & Regulation) Act”

Reason– To prohibit employment of the child as well as of the adolescent in the scheduled
occupation & regulate the condition of working in other occupation.

 Defining term adolescent under Section 2 (i):

Adolescent – any person above 14 years of age but below 18 years

 Change in definition of child under Section 2 (ii):

“A person not completed 14 years or such age as specified in the Right of Children to free
and compulsory education Act, 2009 whichever is more.”

 Complete prohibition in employment of children:

In light of the Right of Children to Free and Compulsory Education Act, 2009, the Bill seeks
to prohibit employment of children below 14 years in all occupations except where the
child helps his family after school hours.

 Prohibition on engaging adolescents in Scheduled employment under Section 3:

The Bill prohibits employment of adolescents in hazardous occupations as specified (mines,


inflammable substance and hazardous processes).

(i) The central government may add or omit any hazardous occupation from the list
included in the Bill.

(ii) Part – III of the Act to be omitted.

 Enhancement of punishment:

The Bill enhances the punishment for employing any child in an occupation. It also
includes penalty for employing an adolescent in a hazardous occupation.

The penalty for employing a child was increased to imprisonment between 6 months and
two years (from 3 months-one year) or a fine of Rs 20,000 to Rs 50,000 (from Rs 10,000-
20,000) or both.

The penalty for employing an adolescent in hazardous occupation is imprisonment


between 6 months and two years or a fine of Rs 20,000 to Rs 50,000 or both.[40]

 Duties upon the District Magistrate:

It shall be duty of D.M. to ensure that the provisions of this Act are carried out well.

 Appropriate Government shall take measures for periodical checks upon the
organization under Section 17(B).
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Standing Committee Recommendations and Amendment Bill, 2015:

The Amendment Bill of 2012 was referred to the Standing Committee on Labour which
submitted its report on the Bill on December 13, 2013. Subsequently, on November 27,
2015 the government circulated amendments to the Bill pending in Parliament.

There were a few key differences between the Amendment Bill, 2012; the Standing
Committee Report and the Amendment Bill of 2015:

Amendment to Clause 5: Prohibition against employment of children

 Amendment Bill, 2012–

Under the Amendment Bill of 2012 it was proposed that employment of children should be
prohibited in any occupation, except where a child:

(i) helps his family after school hours or in fields or home based work,

(ii) attends technical institution during vacation for learning

 Standing Committee Recommendations–

The Standing Committee, however, opined that this provision would create a loophole as it
would be difficult to keep a check on children working in their homes, and finding out
whether they are helping their parents or working to supplement the family income.

(i) It was proposed that exceptions should be removed and employment should be
prohibited in all occupations where there is subordinate relationship of work and labour.

(ii) Further, rules should be made for prohibition and regulation of children and
adolescents working in the audio-visual entertainment industry.

 Amendment Bill, 2015–

The Amendments proposed in 2015 did not accept the recommendations of the Standing
Committee regarding removal of all exceptions. However, the recommendation regarding
the regulation of work in audio-visual entertainment industry was accepted.

(i) Exceptions were expanded to include: (i) helping family and a family enterprise which
are not hazardous occupations, after school hours or during vacations, and (ii) working in
the audiovisual entertainment industry (films, TV, etc.) or sports activities.

(ii) Appropriate government may regulate working conditions and safety standards for
children in the audio-visual entertainment industry. No specific provision regulating
adolescents in the audio-visual entertainment industry.

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Amendment to Clause 6: Prohibition against employing adolescents in hazardous
occupations and processes

 Amendment Bill, 2012–

It proposed to prohibit employment of adolescents in:

(i) hazardous occupations (i.e., mines, inflammable substances or explosives), or

(ii) hazardous processes (as defined in the Factories Act, 1948)

 Standing Committee Recommendations–

It was suggested that the meaning of hazardous occupations and processes should be
widened to include all those occupations and processes that may jeopardise health, safety
and morals of adolescents, in line with the International Labour Organisation Convention
138.

 Amendment Bill, 2015–

This Bill did not address the concern of the Standing Committee; however, it stated that
central government may specify kinds of non-hazardous occupations and processes in
which adolescents may be employed.

Amendment to Clause 8 and New Clauses 8A to 8H: Regulating conditions of work

 Amendment Bill, 2012–

It was proposed to remove provisions regulating working conditions of children (including


hours of work, weekly holidays, health and safety) under the Child Labour Act, 1986.

 Standing Committee Recommendations–

It was proposed that Act must provide for regulation of the working conditions of
adolescents in non-hazardous occupations and processes.

 Amendment Bill, 2015–

This Bill added provisions regulating working conditions of adolescents and gave power to
the appropriate government to make rules in this regard.

Amendment to Clause 9: Penalties

 Amendment Bill, 2012–

(i) Employers and parents/ guardians of children in employment, or of adolescents


working in hazardous occupations and processes, will be punished with imprisonment
between six months and two years and/ or fine between Rs. 20,000 to Rs. 50,000.
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(ii) For subsequent offence, the penalty will be imprisonment between one and three years.

(iii) Every offence under the Act will be cognizable.

 Standing Committee Recommendations–

However, the Standing Committee had a different view regarding punishing parents.

(i) All offences by parents require a lenient view as reasons for entry into child labour
include poverty, neglect, trafficking, lack of schools, etc. Parents may not know which
occupations are hazardous.

(ii) Parents who are repeat offenders may be punished for allowing children to work.

 Amendment Bill, 2015–

(i) Parents or guardians of children/ adolescents will not be liable for punishment in case of
first offence.

(ii) Parents or guardians of children/ adolescents will be punishable with a fine up to Rs.
10,000 for subsequent offence.

(iii) Only certain offences by employers will be cognizable: (i) employing children, and (ii)
employing adolescents in hazardous occupations/ processes. Certain additional provisions
have been added for: (i) compounding of certain first time offences by employers (like
violating health and safety standards), (ii) compounding of any offence by parents/
guardians, (iii) empowering appropriate government to make rules for compounding of
offences, etc.

Amendment to Clause 10: Rehabilitation of rescued children and adolescents

 Amendment Bill, 2012–

There was no provision regarding this in the Amendment Bill, 2012 and it was proposed
subsequently.

 Standing Committee Recommendations–

It was suggested that a Welfare Fund should be constituted for the rehabilitation of children
and adolescents from the fine collected from the errant employers.

 Amendment Bill, 2015–

It was proposed to constitute a Child and Adolescent Labour Rehabilitation Fund at the
district level. Fines from employers and Rs. 15,000 from the appropriate government for
each child/ adolescent rescued will be credited into the Fund. Appropriate government may
frame rules regulating manner of paying rescued children/ adolescents from the Fund.[41]

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The Child Labour (Prohibition and Regulation) Amendment Act, 2016:

After the Amendment Bill of 2012, the Standing Committee Recommendations and the
proposed amendments of the 2015 Bill, the Bill was presented in the Rajya Sabha which
passed it on 19th July 2016, and on 26th July 2016 it was passed by the Lok Sabha as The
Child Labour (Prohibition and Regulation) Amendment Bill, 2016. Thus, the Bill upon being
passed by both the Houses of the Parliament was sent for Presidential assent and on 29th
July 2016 the President gave his assent to it.

Within days of being passed by the Parliament, this new Bill has been criticized by various
National and International Organizations, including the UNICEF. However, before venturing
into the controversial, let us first see what major amendments this Bill brings to the
existing Act.

Amendment in Long Title:

“An Act to prohibit the engagement of children in all occupations and to prohibit the
engagement of adolescents in hazardous occupations and processes and the matters
connected therewith or incidental thereto.”

Amendment in Short Title:

“the Child Labour (Prohibition and Regulation) Act, 1986”, the words, brackets and figures
“the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986” shall be
substituted.

Amendment in Section 2:

 Definition of Adolescent added– “Adolescent” means a person who has completed


his fourteenth year of age but has not completed his eighteenth year;[42]

 Definition of Child substituted– “Child” means a person who has not completed
his fourteenth year of age or such age as may be specified in the Right of Children to
Free and Compulsory Education Act, 2009, whichever is more;[43]

Legal Provisions for Women

Specific provisions legally for female employees

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and


Redressal) Act, 2013

To solidify the Supreme Court’s guidelines has laid down in Vishaka V/s State of Rajasthan
and to have a comprehensive legal framework for the protection of women at workplaces,
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 was brought into force from 9 December 2013.

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The Act ensures that women are protected against sexual harassment at all the work places,
be it in public or private. The Act has laid down detailed procedure for dealing with
complains and enquiries, protection of victims and prescribes punishment for sexual
harassment and also punishes false complaints of harassment. The Act defines sexual
harassment as sexual coloured remarks, demand or request for sexual favours, showing
pornography, unwelcome physical, verbal, non-verbal sexual conduct and uninvited
physical contact and advances.

The Act has made provisions for the creation of Internal Complaints Committee’ (“ICC”) at
each office or branch, of an organization employing at least 10 employees. The ICC shall
comprise of senior level working women employed in company, two members from
employees, one member from NGO or person familiar with issues relating to sexual
harassment.

As per the Act, the Government must set up a ‘Local Complaints Committees’ (“LCC”) at the
district level to investigate complaints regarding sexual harassment from establishments
where the ICC has not been constituted.

Noncompliance with this Act may invite a fine of up to Rs 50,000/- upon the employer and
also cancellation of license to carry out business activities.

The Maternity Benefit Act, 1961

The Maternity benefit Act, 1961 exists for the benefit of working women who are pregnant,
or have given birth or suffered a miscarriage. The Maternity Benefit Act applies to any
establishment in which 10 or more persons are employed, or were employed, on any day of
the preceding 12 months. It is to be noted that the portion describing applicability of the
Act uses the word ‘persons’ and not ‘women’, meaning that it is not necessary that there
must be a minimum of 10 women in an establishment for the Act to apply, only 10 persons,
including at least one woman. The Act regulates the employment of women in such
establishments for certain periods before and after child birth. They will be entitled to
Maternity benefits as per the provisions of the Act.

Objective of Maternity Benefit Act, 1961 : The object of the act is to protect the dignity of
motherhood and the dignity of a new person’s birth by providing for the full and healthy
maintenance of the woman and her child at this important time when she is not working.

Cash Benefits of the act:

 Leave with average pay for six weeks (1.5 months) before the delivery.

 Leave with average pay for six weeks (1.5 months) after the delivery.

 A medical bonus of Rs.25 if the employer does not provide free medical care to the
woman

 An additional leave with pay up to one month if the woman shows proof of illness
due to the pregnancy, delivery, miscarriage, or premature birth.
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 In case of miscarriage, six weeks leave with average pay from the date of
miscarriage.

Non – Cash Benefits of the act:

 Light work for ten weeks (six weeks plus one month) before the date of her expected
delivery, if she asks for it.

 Two nursing breaks in the course of her daily work until the child is 15 months old.

 No discharge or dismissal while she is on maternity leave.

 No change to her disadvantage in any of the conditions of her employment while on


maternity leave.

 Pregnant women discharged or dismissed may still claim maternity benefit from the
employer.

Other benefits of Maternity Benefit Act

Leave for Miscarriage & Tubectomy Operation

 Leave with wages at the rate of maternity benefit, for a period of six weeks
immediately following the day of her miscarriage or her medical termination of
pregnancy.

 Entitled to leave with wages at the rate of maternity benefit for a period of two
weeks immediately following the day of her tubectomy operation.

 Leave for illness arising out of pregnancy

Eligibility:

1. i) When ESI is not covered.

2. ii) 80 days of working completion in 12 months before the expected date of delivery
including the holidays.

Display of Form: FORM K

Annual Returns: FORM K, L & M has to be submitted in duplicate by 31st JAN

Procedure:

– The employee has to give a notice in writing FORM 1

– Nomination also required in FORM 1

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– Proof of delivery/ miscarriage/illness in FORM 2 from a registered medical
practitioner or FORM 3 from Midwife or a Certificate from Police

Crèche Facility for Women Employees:

As per the provisions under Section 48 of the Factories Act, 1948 any factory employing 30
or more women workers are required to provide creche facilities for the use of children
under the age of 6 years for the women employees

Provision for creè ches exists under the following:

 Section 48 of the Factories Act, 1948.

 Section 44 of the Inter State Migrant Workmen (RECS) Act, 1979.

 Section 12 of the Plantations Labour Act, 1951.

 Section 14 of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966.

 Section 35 of the Building and other Constructions (Regulation of Employment and


Conditions of Service) Act, 1996

Safety/Health Measures

 Section 22(2) of the Factories Act, 1948 provides that no woman shall be allowed to
clean, lubricate or adjust any part of a prime mover or of any transmission
machinery while the prime mover or transmission machinery is in motion

 Section 27 of the Factories Act, 1948 prohibits employment of women in any part of
a factory for pressing cotton in which a cotton opener is at work.

 No woman employee shall lift, carry, or move by hand or on head any material,
article, tools, or appliance exceeding the maximum limit in weight of 30 kilograms

 There shall be at least one women (worker) on the Canteen Managing Committee.

Prohibition of Night Work

 Section 66(1)(b) of the Factories Act, 1948 states that no woman shall be required
or allowed to work in any factory except between the hours of 6 a.m. and 7 p.m.

 Section 25 of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966
stipulates that no woman shall be required or allowed to work in any industrial
premise except between 6 a.m. and 7 p.m.

 Section 46(1)(b) of the Mines Act, 1952 prohibits employment of women in any
mine above ground except between the hours of 6 a.m. and 7 p.m.

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Prohibition of Sub-terrain Work

Section 46(1)(b) of the Mines Act, 1952 prohibits employment of women in any part of a
mine which is below ground.

Provisions for Separate Latrines and Urinals

Provision for separate latrines and urinals for female workers under cover and partitioned
to secure privacy and shall have proper door and fastenings exist under the following:

 Rule 53 of the Contract Labour (Regulation and Abolition) Act, 1970.

 Section 19 of the Factories Act, 1948.

 Rule 42 of the Inter State Migrant Workmen (RECS) Central Rules, 1980.

 Section 20 of the Mines Act, 1952.

 Section 9 of the Plantations Labour Act, 1951.

Provisions for Separate Washing Facilities

Provision for separate washing facilities for female workers exists under the following:

 Section 57 of the Contract Labour (Regulation and Abolition) Act, 1970.

 Section 42 of the Factories Act.

 Section 43 of the Inter-State Migrant Workmen (RECS) Act, 1979.

Provisions of Information Center under Factories Act, 1948

Every factory shall set up an information center for women workers, which shall provide
them information regarding the protective measures under the act and the rules.

“Vocational Training for Women” under Directorate General of -Employment &


Training

DGE&T is the nodal agency for providing vocational training in traditional and
contemporary courses and certification to women to meet the trained skill workforce to the
industry and service sector etc. in the country. These courses help women to achieve their
career goals and become independent. The Women Vocational Training Programme is
dedicated to planning and implementing long term policies related to women’s vocational
training in the country.

The National/Regional Vocational Training Institutes for women provide (i) Crafts Training
Scheme (CTS) & (ii) Crafts Instructors Training Scheme (CITS) under modular pattern
training programmes and Short term training courses, who have passed 10th or 12th
26 | P a g e
standard and meet the specified eligibility criteria for various courses such as dress
making, hair and skin care, preservation of fruits and vegetables, stenography, secretarial
practice, computer programming, fashion technology, catering and hospitality etc.

Grants-in-aid Scheme:

The Ministry of is running a Grant-in-aid Scheme for the welfare of women labour. This
Scheme, which has been continuing since Sixth Five Year Plan (1981-82), is administered
through voluntary organizations by giving grant-in-aid to them for the following purposes:

 Organizing working women and educating them about their rights/duties, Legal aid
to working women

 Seminars, workshops, etc. aiming at raising the general consciousness of the society
about the problems of women labour

Under this Scheme, Voluntary Organizations/NGOs are being provided funds by way of
grants-in-aid to take up action-oriented projects for the benefit of women labour. Projects
relating to awareness generation campaigns for women labour are funded under this
Scheme. The focus of the Scheme is awareness generation among women labour, in the area
of wages, like minimum wages, equal remuneration, etc. to disseminate information on
various schemes of Central/State Government Agencies available for the benefit of women
labour.

Equal Remuneration for Women

As per the equal remuneration act , payment of equal remuneration to men and women
workers are suppose to be provided 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.

Prohibition of Night Work for Women Employees

 Section 66(1)(b) of the Factories Act, 1948 states that no woman shall be required
or allowed to work in any factory except between the hours of 6 a.m. and 7 p.m.

(After much debate, the ban has been lifted in majority of industries. For instance, the
Factories Act, 1948, which initially banned women from working in night shifts, now
liberalized women to work at their desired timing. It was argued that provisions for safety
of women should be implemented such as provision of transportation till the doorstep of
their residence rather than their ban at work during those hours.) Today, in four districts,
there are about 40,000 women employees doing three shifts, including night shifts.

 Section 25 of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966
stipulates that no woman shall be required or allowed to work in any industrial
premise except between 6 a.m. and 7 p.m.

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 Section 46(1)(b) of the Mines Act, 1952 prohibits employment of women in any
mine above ground except between the hours of 6 a.m. and 7 p.m.

 According to shops and establishment act no women shall be required or allowed to


work in any establishment after 9:30 PM

In ITes and IT industry provision of women employees working after 8PM is allowed
provided transportation till door step and other security measures for women employees
are adhered.

UNIT-II

MINIMUM WAGES ACT:

The Remunerative Aspects

Annual leave with wages

(1) Every worker who has worked for a period of 240 days or more in a factory during a
calendar year shall be allowed during the subsequent calendar year, leave with wages for a
number of days calculated at the rate of-

(i) if an adult, one day for every twenty days of work performed by him during the
previous calendar year;

(ii) if a child, one day for every fifteen days of work performed by him during the
previous calendar year.

Explanation 1 : For the purpose of this sub-section-

(a) any days of lay-off, by agreement or contract or as permissible under the standing
orders;

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(b) in the case of a female worker, maternity leave for any number of days not exceeding
twelve weeks; and

(c) the leave earned in the year prior to that in which the leave is enjoyed;

shall be deemed to be days on which the worker has worked in a factory for the purpose of
computation of the period of 240 days or more, but shall not earn leave for these days.

Explanation 2: The leave admissible under this sub-section shall be exclusive of all
holidays whether occurring during or at either end of the period of leave.

(2) A worker whose service commences otherwise than on the first day of January shall be
entitled to leave with wages at the rate laid down in clause (i) or, as the case may be, clause
(ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the
remainder of the calendar year.
90
[(3) If a worker is discharged or dismissed from service or quits his employment or is
superannuated or dies while in service, during the course of the calendar year, he or his
heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of
leave to which he was entitled immediately before his discharge, dismissal, quitting of
employment, superannuation or death calculated at the rates specified in sub-section (1),
even if he had not worked for the entire period specified in sub-section (1) or sub-section
(2) making him eligible to avail of such leave, and such payment shall be made-

(i) where the worker is discharged or dismissed or quits employment, before the
expiry of the second working day from the date of such discharge, dismissal, or
quitting; and

(ii) where the worker is superannuated or dies while in service, before the expiry of
two months from the date of such superannuation or death.]

(4) In calculating leave under this section, 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 omitted.

(5) If a worker does not in any one calendar year take the whole of the leave allowed to him
under sub-section (1) or sub-section (2), as the case may be, any leave not taken by him
shall be added to the leave to be allowed to him in the succeeding calendar year:

PROVIDED that the total number of days of leave that may be carried forward to a
succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child:

PROVIDED FURTHER that a worker, who has applied for leave with wages but has not
been given such leave in accordance with any scheme laid down in sub-section (8) and (9)
92
[or in contravention of sub-section (10)] shall be entitled to carry forward the 93[leave
refused] without any limit.

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(6) A worker may at any time apply in writing to the manager of a factory not less than
fifteen days before the date on which he wishes his leave to begin, to take all the leave or
any portion thereof allowable to him during the calendar year:

PROVIDED that the application shall be made not less than thirty days before the date on
which the worker wishes his leave to begin, if he is employed in a public utility service as
defined in clause (n) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947):

PROVIDED FURTHER that the number of times in which leave may be taken during any
year shall not exceed three.

(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of
illness, he shall be granted such leave even if the application for leave is not made within
the time specified in sub-section (6); and in such a case wages as admissible under section
81 shall be paid not later than fifteen days, or in the case of a public utility service not later
than thirty days from the date of the application for leave.

(8) For the purpose of ensuring the continuity of work, the occupier or manager of the
factory, in agreement with the Works Committee of the factory constituted under section 3
of the Industrial Disputes Act, 1947 (14 of 1947), or a similar Committee constituted under
any other Act or if there is no such Works Committee or a similar Committee in the factory,
in agreement with the representatives of the workers therein chosen in the prescribed
manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave
allowable under this section may be regulated.

(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and
convenient places in the factory and shall be in force for a period of twelve months from the
date on which it comes into force, and may thereafter be renewed with or without
modifications for a further period of twelve months at a time, by the manager in agreement
with the Works Committee or a similar Committee, or as the case may be, in agreement
with the representatives of the workers as specified in sub-section (8), and a notice of
renewal shall be sent to the Chief Inspector before it is renewed.

(10) An application for leave which does not contravene the provisions of sub-section (6)
shall not be refused, unless refusal is in accordance with the scheme for the time being in
operation under sub-sections (8) and (9).

(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-
section (2), as the case may be, is terminated by the occupier before he has taken the entire
leave to which he is entitled, or if having applied for and having not been granted such
leave, the worker quits his employment before he has taken the leave, the occupier of the
factory shall pay him the amount payable under section 80 in respect of the leave not taken,
and such payment shall be made, where the employment of the worker is terminated by the
occupier, before the expiry of the second working day after such termination, and where a
worker who quits his employment, on or before the next pay day.

(12) The unveiled leave of a worker shall not be taken into consideration in computing the
period of any notice required to be given before discharge or dismissal.

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CHAPTER VIII.- Annual Leave with Wages

Section 78. Application of Chapter.-

(1) The provisions of this Chapter shall not operate to prejudice of any right to which a
worker may be entitled under any other law or under the terms of any award, agreement
including settlement or contract of service:

Provided that if such award, agreement (including settlement) or contract of service


provides for a longer annual leave with wages than provided in this Chapter, the quantum
of leave, which the worker shall be entitled to, shall be in accordance with such award,
agreement or contract of service, but in relation to matters not provided for in such award,
agreement or contract of service or matters which are provided for less favourable therein,
the provisions of sections 79 to 82, so far as may be, shall apply.

(2) The provisions of this Chapter shall not apply to workers in any factory of any railway
administered by the Government, who are governed by leave rules approved by the Central
Government

Section 79. Annual leave with wages.-

(1) Every worker who has worked for a period of 240 days or more in a factory during a
calendar year shall be allowed during the subsequent calendar year, leave with wages for a
number of days calculated at the rate of -

 (i) if an adult, one day for every twenty days of work performed by him during the
previous calendar year;

 (ii) if a child, one day for every fifteen days of work performed by him during the
previous calendar year.

Explanation 1. - For the purposes of this sub-section-

 (a) any days of lay-off, by agreement or contract or as permissible under the


standing orders;

 (b) in the case of a female worker, maternity leave for any number of days not
exceeding twelve weeks; and

 (c) the leave earned in the year prior to that in which the leave is enjoyed;

shall be deemed to be days on which the worker has worked in a factory for the purpose of
computation of the period of 240 days or more, but he shall not earn leave for these days.

Explanation 2. - The leave admissible under this sub-section shall be exclusive of all
holidays whether occurring during or at either end of the period of leave.

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(2) A worker whose service commences otherwise than on the first day of January shall be
entitled to leave with wages at the rate laid down in clause (t) or, as the case may be, clause
(ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the
remainder of the calendar year.

(3) If a worker is discharged or dismissed from service or quits his employment or is


superannuated or dies while in service, during the course of the calendar year, he or his
heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of
leave to which he was entitled immediately before his discharge, dismissal, quitting of
employment, superannuation or death, calculated at the rates specified in sub-section (1),
even if he had not worked for the entire period specified in sub-section(1) or sub-section
(2) making him eligible to avail of such leave, and such payment shall be made -

 (i) where the worker is discharged or dismissed or quits employments before the
expiry of the second working day from the date of such discharge, dismissal or
quitting; and

 (ii) where the worker is superannuated or dies while in service, before the expiry of
two months from the date of such superannuation or death.

(4) In calculating leave under this section, 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 omitted.

(5) If a worker does not in any one calendar year takes the whole of the leave allowed to
him under sub-section (1) or sub-section (2), as the case may be, any leave not taken by
him shall be added to the leave to be allowed to him in the succeeding calendar year:

Provided that the total number of days of leave that may be carried forward to a succeeding
year shall not exceed thirty in the case of an adult or forty in the case of a child:

Provided further that a worKer, who has applied for leave with wages but has not been
given such leave in accordance with any scheme laid down in sub-sections (8) and (9) or in
contravention of sub-section (10) shall be entitled to carry forward the leave refused
without any limit.

(6) A worker may at any time apply in writing to the manager of a factory not less than
fifteen days before the date on which he wishes his leave to begin, to take all the leave or
any portion thereof allowable to him during the calendar year:

Provided that the application shall be made not less than thirty days before the date on
which the worker wishes his leave to begin, if he is employed in a public utility service as
defined in clause (n) of section 2 of the Industrial Disputes Act, 1947 (XIV of 1947):

Provided further that the number of times in which leave may be taken during any year
shall not exceed three.

(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of
illness, he shall be granted such leave even if the application for leave is not made within

32 | P a g e
the time specified in sub-section (6); and in such a case wages as admissible under section
81 shall be paid not later than fifteen days, or in the case of a public utility service not later
than thirty days from the date of the application for leave.

(8) For the purpose of ensuring the continuity of work, the occupier or manager of the
factory, in agreement with the Works Committee for the factory constituted under section 3
of the Industrial Disputes Act, 1947 (XIV of 1947), or a similar Committee constituted
under any other Act or if there is no such Works Committee or a similar Committee in the
factory, in agreement with the representatives of t.he workers therein chosen in the
prescribed manner, may lodge with the Chief Inspector a scheme in writing whereby the
grant of the leave allowable under this section may be regulated.

(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and
convenient place in the factory and shall be in force for a period of twelve months from the
date on which it comes into force, and may thereafter be renewed with or without
modification for a further period of twelve months at a time, by the manager in agreement
with the Works Committee or a similar Committee, or as the case may be, in agreement
with the representatives of the workers as specified in sub-section (8), and a notice of
renewal shall be sent to the Chief Inspector before it is renewed.

(10) An application for leave which does not contravene the provisions of sub-section (6)
shall not be refused, unless refusal is in accordance with the scheme for the time being in
operation under sub-sections (8) and (9).

(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-
section (2), as the case may be, is terminated by the occupier before he has taken the entire
leave to which he is entitled, or if having applied for and having not been granted such
leave, the worker quits his employment before he has taken the leave, the occupier of the
factory shall pay him the amount payable under section 80 in respect of the leave not taken,
and such payment shall be made, where the employment of the worker is terminated by the
occupier, before the expiry of the second working day after such termination, and where a
worker who quits his employment, on or before the next pay day.

(12) The unavailed leave of a worker shall not be taken into consideration in computing the
period of any notice required to be given before discharge or dismissal.

Section 80. Wages during leave periods.-

(1) For the leave allowed to him under section 78 or section 79, as the case may be, a
worker shall be entitled to wages at a rate equal to the daily average of his total full time
earnings for the day on which he actually worked during the months immediately
preceding his leave, exclusive of any overtime and bonus but inclusive of dearness
allowance and the cash equivalent of advantage accruing through the concessional sale to
the worker of foodgrains and other articles:

Provided that in the case of a worker who has not worked on any day during the calendar
month immediately preceding his leave, he shall be paid at a rate equal to the daily average
of his total full time earnings for the days on which he actually worked during the last

33 | P a g e
calendar month preceding his leave, in which he actually worked, exclusive of any overtime
and bonus but inclusive of dearness allowance and the cash equivalent of the advantage
accruing through the concessional sale to the workers of foodgrains and other articles.]

(2) The cash equivalent of the advantage accruing through the concessional sale to the
worker of foodgrains and other articles shall be computed as often as may be prescribed, on
the basis of the maximum quantity of foodgrains and other articles admissible to a standard
family.

Explanation 1. - "Standard family" means a family consisting of a worker, his or her spouse
and two children below the age of fourteen years requiring in all three adult consumption
units.

Explanation 2. - "Adult consumption unit" means the consumption unit of a male above the
age of fourteen years; and the consumption unit of a female above the age of fourteen years,
and that of a child below the age of fourteen years shall be calculated at the rates of 8 and 6
respectively of one adult consumption unit.

(3) The State Government may make rules prescribing -

 (a) the manner in which the cash equivalent of the advantage accruing through the
concessional sale to a worker of foodgrains and other articles shall be computed;
and

 (b) the registers that shall be maintained in a factory for the purpose of securing
compliance with the provisions of this section.

Section 81. Payment in advance in certain cases. -

A worker who has been allowed leave for not less than four days, in the case of an adult, and
five days, in the case of a child, shall, before his leave begins, be paid the wages due for the
periods of the leave allowed.

Section 82. Mode of recovery of unpaid wages.-

Any sum required to be paid by an employer, under this Chapter but not paid by him, shall
be recoverable as delayed wages under the provisions of the Payment of Wages Act, 1936
(IV of 1936).

Section 83. Power to make rules.-

The State Government may make rules directing managers of factories to keep registers
containing such particulars as may be prescribed and requiring the registers to be made
available for examination by Inspectors.

Section 84. Power to exempt factories.-

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Where the State Government is satisfied that the leave rules applicable to workers in a
factory provide benefits which in its opinion, are not less favourable than those for which
this Chapter makes provisions, it may by written order, exempt the factory from all or any of
the provisions of this Chapter subject to such conditions as may be specified in the order.

Explanation. - For the purposes of this section, in deciding whether the benefits which are
provided for by any leave rules are less favourable than those for which this Chapter makes
provision, or not, the totality of the benefits shall be taken into account.

Central Government Act


Section 79 in The Factories Act, 1948
79. Annual leave with wages.—
(1) Every worker who has worked for a period of 240 days or more in a factory during a
calendar year shall be allowed during the subsequent calendar year, leave with wages for a
number of days calculated at the rate of—
(i) if an adult, one day for every twenty days of work performed by him during the previous
calendar year;
(ii) if a child, one day for every fifteen days of work performed by him during the previous
calendar year. Explanation 1.—For the purpose of this sub-section—
(a) any days of lay off, by agreement or contract or as permissible under the standing
orders;
(b) in the case of a female worker, maternity leave for any number of days not exceeding
twelve weeks; and
(c) the leave earned in the year prior to that in which the leave is enjoyed, shall be deemed
to be days on which the worker has worked in a factory for the purpose of computation of
the period of 240 days or more, but he shall not earn leave for these days. Explanation 2.—
The leave admissible under this sub-section shall be exclusive of all holidays whether
occurring during or at either end of the period of leave.
(2) A worker whose service commences otherwise than on the first day of January shall be
entitled to leave with wages at the rate laid down in clause (i) or, as the case may be, clause
(ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the
remainder of the calendar year. 1[(3) If a worker is discharged or dismissed from service or
quits his employment or is superannuated or dies while in service, during the course of the
calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in
lieu of the quantum of leave to which he was entitled immediately before his discharge,
dismissal, quitting of employment, superannuation or death calculated at the rates
specified in sub-section (1) even if he had not worked for the entire period specified in sub-
section (1) or sub-section (2) making him eligible to avail of such leave, and such payment
shall be made—
(i) where the worker is discharged or dismissed or quits employment, before the expiry of
the second working day from the date of such discharge, dismissal or quitting; and
(ii) where the worker is superannuated or dies while in service, before the expiry of two
months from the date of such superannuation or death.]
(4) In calculating leave under this section, 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 omitted.
(5) If a worker does not in any one calendar year take the whole of the leave allowed to him
under sub-section (1) or sub-section (2), as the case may be, any leave not taken by him
shall be added to the leave to be allowed to him in the succeeding calendar year: Provided
35 | P a g e
that the total number of days of leave that may be carried forward to a succeeding year
shall not exceed thirty in the case of an adult or forty in the case of a child: Provided further
that a worker, who has applied for leave with wages but has not been given such leave in
accordance with any scheme laid down in sub-sections (8) and (9) 2[or in contravention of
sub-section (10)] shall be entitled to carry forward the 3[leave refused] without any limit.
(6) A worker may at any time apply in writing to the manager of a factory not less than
fifteen days before the date on which he wishes his leave to begin, to take all the leave or
any portion thereof allowable to him during the calendar year: Provided that the
application shall be made not less than thirty days before the date on which the worker
wishes his leave to begin, if he is employed in a public utility service as defined in clause (n)
of section 2 of the Industrial Disputes Act, 1947 (14 of 1947): Provided further that the
number of times in which leave may be taken during any year shall not exceed three.
(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of
illness, he shall be granted such leave even if the application for leave is not made within
the time specified in sub-section (6); and in such a case wages as admissible under section
81 shall be paid not later than fifteen days, or in the case of a public utility service not later
than thirty days from the date of the application for leave.
(8) For the purpose of ensuring the continuity of work, the occupier or manager of the
factory, in agreement with the Works Committee of the factory constituted under section 3
of the Industrial Disputes Act, 1947 (14 of 1947), or a similar Committee constituted under
any other Act or if there is no such Works Committee or a similar Committee in the factory,
in agreement with the representatives of the workers therein chosen in the prescribed
manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave
allowable under this section may be regulated.
(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and
convenient places in the factory and shall be in force for a period of twelve months from the
date on which it comes into force, and may thereafter be renewed with or without
modification for a further period of twelve months at a time, by the manager in agreement
with the Works Committee or a similar Committee, or as the case may be, in agreement
with the representatives of the workers as specified in sub-section (8), and a notice of
renewal shall be sent to the Chief Inspector before it is renewed.
(10) An application for leave which does not contravene the provisions of sub-section (6)
shall not be refused, unless refusal is in accordance with the scheme for the time being in
operation under sub-sections (8) and (9).
(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-
section (2), as the case may be, is terminated by the occupier before he has taken the entire
leave to which he is entitled, or if having applied for and having not been granted such
leave, the worker quits his employment, before he has taken the leave, the occupier of the
factory shall pay him the amount payable under section 80 in respect of the leave not taken,
and such payment shall be made, where the employment of the worker is terminated by the
occupier, before the expiry of the second working day after such termination, and where a
worker who quits his employment, on or before the next pay day.
(12) The unavailed leave of a worker shall not be taken into consideration in computing the
period of any notice required to be given before discharge or dismissal.

TYPES OF WAGES

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Wage is the remuneration paid to a worker for his services. It is essential for management
to develop a suitable wage system. An industry generally pays 60% of its total cost in the
form of wages to the employees. If an industry pays fewer wages to its employees, it
increases the profits but it can cause dissatisfaction among workers. It can also results in
reduction of efficiency of workers. A suitable wage plan is essential for better efficiency,
higher production and industrial peace. Wages refers to amount paid on hourly or daily
basis. Salary refers to monthly payment. Wages should be sufficient to fulfill the needs of a
worker and provide him comforts of life to maintain his standard of living.

Classification of wages:
Nominal wages: It consists of wages paid in cash only. It does not include other benefits
like medical allowance, residence, transport etc.
Real wages: It consists of wages paid in cash along with other benefits like medical
allowance, residence, transport, children education etc.
Sometimes, two workers performing the similar job in same or different industry get
different wages. It is due to the difference in their qualification, skill, responsibility and
experience. This is known as wage differentials.

Types of wages:
Minimum wage: The wage which is sufficient for a worker to cover his basic necessities of
life i.e. food, shelter and clothing is called minimum wage. It is required to keep him alive.
Most of the countries have made Minimum wages act in order to fix the lowest limit of
wages.
Living wage: It ensures to maintain the decent standard of living of an employee. Various
incentives are given to the employees so that he can save for his future needs after fulfilling
his basis necessities.
Fair wage: It is somewhat in between minimum wage and living wage. The lower limit of
fair wage is minimum wage and upper limit depends upon the paying capacity of an
industry.

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Hourly Wage

Hourly wage is a fixed earning paid to an employee for services per hour. This hourly wage
is agreed upon by you and your employer but is subject to certain minimum hourly wage
requirements as per the laws of your state or federal government. Jobs that are paid per
hour include painting, editing, babysitting and others.

Piece-Rate Wage

Piece wages are those that are paid according to output. For example, you might agree with
someone to cut her lawn for $100. You will be paid this amount as long as you finish cutting
the grass, whether you take one hour or 10 hours to do so. A good example of piece-rate pay
is what is paid to a mechanic. For repairing your car, he is paid a certain amount regardless
of the time he takes to finish the job.

Overtime Wages

Overtime wages are payment made to a worker for services rendered beyond normal
working hours. If you are supposed to work for eight hours per day at a rate of $10 per
hour, your contract might indicate that any hourly work done beyond the normal working
hours is paid at a rate of $20 per hour.

Fixed Annual Salary

A fixed annual salary is payment made to workers for services rendered without
quantifying the rate by the number of hours worked. A newspaper editor, for instance,
might be paid an annual salary in monthly installments regardless of the number of hours
put in editing the newspaper.

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Minimum Wages : Fixation and Procedure under Minimum Wages Act, 1948

November 20, 2017


FIXATION OF MINIMUM WAGES [Section 3(1)(a)]

Section 3 lays down that the Government shall fix the minimum rates of wages which is
payable to employees in the course of employment specified in Part I and Part ii of the
Schedule, and in an employment added to either part by notification under Section 27. In
case of the employments specified in Part II of the Schedule, the minimum rates of wages
may not be fixed for the entire State. Parts of the State may be left out altogether. In the case
of an employment specified in Part I, the minimum rates of wages must be fixed for the
entire State, no parts of the State being omitted. The rates to be fixed need not be uniform.
Different rates can be fixed for different zones or localities: [Basti Ram v. State of A.P](1)

The constitutional validity of Section 3 was challenged in Bijoy Cotton Mills v. State
of Ajmer,(2) The Supreme Court held that the restrictions imposed upon the freedom of
contract by the fixation of minimum rate of wages, though they interfere to some extent
with freedom of trade or business guaranteed under Article 19(1)(g) of the Constitution,
are not unreasonable and being imposed and in the interest of general public and with a
view to carrying out one of the Directive Principles of the State Policy as embodied in
Article 43 of the Constitution, are protected by the terms of Clause (6) of Article 9.

Notwithstanding the provisions of Section 3(1)(a), the “appropriate Government” may not
fix minimum rates of wages in respect of any scheduled employment in which less than
1000 employees in the whole State are engaged. But when it comes to its knowledge after a
finding that this number has increased to 1,000 or more in such employment, it shall fix
minimum wage rate.

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REVISION OF MINIMUM WAGES

According to Section 3(1)(b), the Government may review at such intervals as it may think
fit, such intervals not exceeding five years, and revise the minimum rate of wages, if
necessary. This means that minimum wages can be revised earlier than five years also.

MANNER OF FIXATION/REVISION OF MINIMUM WAGES

According to Section 3(2), the Government may fix minimum rate of wages for:

1. time work, known as a Minimum Time Rate;

2. piece work, known as a Minimum Piece Rate;

3. a “Guaranteed Time Rate” for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on a time work basis; (This is
intended to meet a situation where operation of minimum piece rates fixed by the
appropriate Government may result in a worker earning less than the minimum
wage), and

4. a “Over Time Rate” i.e. minimum rate whether a time rate or a piece rate to apply in
substitution for the minimum rate which would otherwise be applicable in respect
of overtime work done by the employee.

Section 3(3) provides that different minimum rates of wages may be fixed for –

1. different scheduled employments;

2. different classes of work in the same scheduled employments;

3. adults, adolescents, children and apprentices;

4. different localities

Further, minimum rates of wages may be fixed by any one or more of the following wage
periods, namely:

1. by the hour,

2. by the day,

3. by the month, or

4. by such other large wage periods as may be prescribed; and where such rates are
fixed by the day or by the month, the manner of calculating wages for a month or for
a day as the case may be, may be indicated. However, where wage period has been
fixed in accordance with the Payment of Wages Act, 1986 vide Section 4 thereof,
minimum wages shall be fixed in accordance therewith [Section 3(3)].

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PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES (Section 5)

In fixing minimum rates of wages in respect of any scheduled employment for the first time
or in revising minimum rates of wages, the appropriate Government can follow either of the
two methods described below.

 First Method [Section 5(1)(a)] This method is known as the ‘Committee Method’.

The appropriate Government may appoint as many committees and subcommittees as it


considers necessary to hold inquiries and advise it in respect of such fixation or revision as
the case may be. After considering the advice of the committee or committees, the
appropriate Government shall, by notification in the Official Gazette fix or revise the
minimum rates of wages. The wage rates shall come into force from such date as may be
specified in the notification. If no date is specified, wage rates shall come into force on the
expiry of three months from the date of the issue of the notification.
Note: It was held in Edward Mills Co. v. State of Ajmer (3) that Committee appointed under
Section 5 is only an advisory body and that Government is not bound to accept its
recommendations.
As regards composition of the Committee, Section 9 of the Act lays down that it shall consist
of persons to be nominated by the appropriate Government representing employers and
employee in the scheduled employment, who shall be equal in number and independent
persons not exceeding 1/3rd of its total number of members.
One of such independent persons shall be appointed as the Chairman of the Committee by
the appropriate Government.

 Second Method [Section 5(1)(b)] The method is known as the ‘Notification Method’.

When fixing minimum wages under Section 5(1)(b), the appropriate Government shall by
notification, in the Official Gazette publish its proposals for the information of persons
likely to be affected thereby and specify a date not less than 2 months from the date of
notification, on which the proposals will be taken into consideration.
The representations received will be considered by the appropriate Government. It will also
consult the Advisory Board constituted under Section 7 and thereafter fix or revise the
minimum rates of wages by notification in the
Official Gazette. The new wage rates shall come into force from such date as may be
specified in the notification.

However, if no date is specified, the notification shall come into force on expiry of three
months from the date of its issue. Minimum wage rates can be revised with retrospective
effect.

By – Shubhi Pandey

(R.D. Vishwavidyalaya)

Reference

1. Basti Ram Narain Das vs State Of Andhra Pradesh And Anr. AIR 1969 AP 227
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2. Bijoy Cotton Mills v. State of Ajmer, 1955 S.C.

3. Edward Mills Co. v. State of Ajmer (1955) A.I.R. SC

4. www.scconline.com

5. advocatekhoj.com

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Timely payment of wages important: Supreme Court

Read more at: https://www.oneindia.com/2006/06/11/timely-payment-of-wages-


important-sc.html

Timely payment of wages important: Supreme Court Posted By: Published: Sunday, June 11,
2006, 11:57 [IST] Subscribe to Oneindia News New Delhi, June 11: The Supreme Court has
held that timely payment of wages to the workers is a must to maintain peace and
tranquility in an industry and an employer cannot deliberately delay and deny the payment
of salaries to the employees. The ruling came on a petition filed by Hotel and Restaurant
Karamchari Sangh against Gulmarg Hotel in Lucknow challenging Allahabad High Court
allowing the writ petition filed by the Hotel management against the order of the Deputy
Labour Commissioner of Lucknow region issuing a certificate for the recovery of Rs.60,810
from the hotel as arrears of wages to its employees.

The certificate was issued under Uttar Pradesh Industrial Peace (Timely Payment of
Wages) Act 1978, (UPIPA).

A bench comprising Mr Justice Arijit Pasayat and Mr Justice C K Thakker vide judgment
dated June 8 restored the order passed by the Assistant Labour Commissioner and quashed
the impugned High Court order.

The UPIPA was brought by the state government to ensure timely payment of wages to
employees to maintain peace in bigger industrial establishments, is applicable only to the
establishments which produce, process, adopt or manufacture some articles and the
amount of arrears of wages must be above Rs. 50,000.

The Labour Commissioner issued show cause notice to the respondent no. 1 on October 19,
2000 and the reply was filed by the hotel on December 14 the same year contending that
the wage bill was below Rs.50,000 as out of 22 employees eight had been paid their wages
and nine employees were absconding.

The Assistant Commissioner rejected the contention of the hotel on the grounds that the
wage bill was above Rs. 50,000 on October 19,2000, the date of institution of the claim and
hence the arrears were recoverable as land revenue arrears. The High Court set aside the
order of the Assistant Labour Commissioner. The Supreme Court held that the inquiry by
the Labour Commissioner contemplated under section 3 of the Act is of a very limited
nature The establishment has made default in timely payment of wages to its workmen as a
whole when there is no dispute that the workers are entitled to the same.

The state of UP supported the stand taken by the appellant while Gulmarg Hotel
respondent no.1 did not appear in the apex court.

The apex court held: '' The Assistant Labour Commissioner was justified in taking the view
that the determinative date is the date on which the claim was lodged. Otherwise the very
purpose of the enactment would be defeated. Otherwise to overcome action contemplated
under section 3(1) of the Act, that is, issuance of certificate for recovery by making a part
payment to see that the amount comes below Rs. 50,000, a crafty and unscrupluous
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employer can defeat the legislative intent.''

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