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Factories Act:-

Applicability of the Act


Objectives:

The Factories Act provides for the health, safety, welfare, service conditions and other aspects of workers in
factories. The Act is enforced by the State Government who frame rules that ensure that local conditions are
reflected in enforcement.
The Act as amended in 1987 also regulates the safeguards to be adopted for the use and handling of hazardous
substances.

Applicability:

The Factories Act extends to whole of India and is applicable to all 'factories' including government factories.
It applies to all factories employing more than 10 people and working with the aid of power or employing 20
people and working without the aid of power.
Factory however does not include a mine covered under the mines Act, 1952, a mobile unit of the armed
forces, a railway shed or a hotel, restaurant or eating place.

The act covers all workers employed in the factory premises or precincts directly or through an agency
including a contractor, involved in any manufacture.

Documents Belonging To This Act

Schedule I - S 2(cb): List Of Industries Involving Hazardous Processes  


Schedule II - S 41-F: Permissible Levels Of Chemical Substances In Work
Environment  
Schedule III - S. 89,90: List Of Notifiable Diseases

Authorities Empowered By This Act


Name of Authority Duties Powers
Central To determine the extent of the To give directions to the state regarding execution of
Government    act and to make rules to give the act, and in the event of the occurrence of an
effect to the Act extraordinary situation in a factory engaged in a
hazardous process, appoint an Inquiry Committee to
inquire into the health and safety standards
State Government To make rules for the State and To exempt during public emergency, to apply the act
to implement and enforce the act to certain establishments, to appoint inspectors and
in the state certifying surgeons, to make exempting rules and
orders, and to make rules providing for any other
matter under the act
Inspector    To implement and enforce the Enter any factory with assistants, make examination of
Act premises, machinery or materials, inquire into any
accident or dangerous occurrence, require the
production of and take copies of any register or
document, take measurements, recordings and
photograph
Chief Inspector    To implement the act with the Enter any factory with assistants, make examination of
assistance of Additional Chief premises, machinery or materials, inquire into any
Inspectors, Joint Chief accident or dangerous occurrence, require the
Inspectors and Deputy Chief production of and take copies of any register or
Inspectors and other officers document, take measurements, recordings and
appointed by the State photograph
Government
Certifying Appointed by the State To appoint qualified medical practitioners to exercise
Surgeons    Government to carry out the his powers, to carry out examinations of employees or
examination of young persons, factories on an order from the inspector
persons engaged in dangerous
occupations and processes and
the medical supervision of
factories where cases of illness
have been observed or where
dangerous processes are car
Site Appraisal To advice State Govt. on To examine an application for the establishment of a
Committee    applications for grant of factory involving hazardous processes and make its
permission for initial location of recommendation to the State government, to call for
factories involving hazardous information from any person for this purpose
processes

Definitions Belonging To This Act:-

2A    Adult A person who has completed his eighteenth year of age


2B    Adolescent A person who has completed his fifteenth year of age but has not
completed his eighteenth year
2BB    Calendar year The period of twelve months beginning with the first day of January in
any year
2C    Child A person who has not completed his fifteenth year of age
2CA    Competent In relation to any provision of this Act, means a person or an institution
person recognised as such by the Chief Inspector for the purposes of carrying
out tests, examinations and inspections required to be done in a factory
under the provisions of this Act having regard to-

(i) the qualifications and experience of the persons and facilities available
at his disposal; or

(ii) the qualifications and experience of the persons employed in such


institution and facilities available therein, with regard to the conduct of
such tests, examinations and inspections, and more than one person or
institution can be recognized as a competent person in relation to a
factory
2CB    Hazardous Any process or activity in relation to an industry specified in the First
process Schedule where, unless special care is taken, raw materials used therein
or the intermediate or finished products, by-products, wastes or effluents
thereof would-

(i) cause material impairment to the health of the persons engaged in or


connected therewith, or

(ii) result in the pollution of the general environment

Provided that the State Government may, by notification in the Official


Gazette, amend the First Schedule by way of addition, omission or
variation of any industry specified in the said Schedule
2D    Young person A person who is either a child or an adolescent
2E    Day A period of twenty-four hours beginning at midnight
2F    Week A period of seven days beginning at midnight on Saturday night or such
other night as may be approved in writing for a particular area by the
Chief Inspector of Factories
2G    Power Electrical energy or any other form of energy which is mechanically
transmitted and is not generated by human or animal agency
2H    Prime mover Any engine, motor or other appliance which generates or otherwise
provides power
2I    Transmission Any shaft, wheel, drum, pulley, system of pulleys, coupling, clutch,
machinery driving belt or other appliance or device by which the motion f a prime
mover is transmitted to or received by any machinery or appliance
2J    Machinery Prime movers, transmission machinery and all other appliances whereby
power is generated, transformed, transmitted or applied
2K    Manufacturin (i) making, altering, repairing, ornamenting, finishing, packing, oiling,
g process washing, cleaning, breaking up, demolishing, or otherwise treating or
adapting any article or substance with a view to its use, sale, transport,
delivery or disposal, or

(ii) pumping oil, water, sewage or any other substance, or

(iii) generating, transforming or transmitting power, or

(iv) composing types for printing, printing by letter press, lithography,


photogravure or other similar process or book binding

(v) constructing, reconstructing, repairing, refitting, finishing or


breaking up ships or vessels

(vi) preserving or storing any article in cold storage


2L    Worker A person employed, directly or by or through any agency (including a
contractor) with or without the knowledge of the principal employer,
whether for remuneration or not, in any manufacturing process or in
cleaning any part of the machinery or premises used for a manufacturing
process, or in any other kind of work incidental to, or connected with, the
manufacturing process, or the subject of the manufacturing process but
does not include any member of the armed forces of the Union
2M    Factory Any premises including the precincts thereof--

(i) whereon ten or more workers are working, or were working on any
day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on with the aid of power, or is
ordinarily so carried on, or

(ii) whereon twenty or more workers are working, or were working on


any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or is
ordinarily so carried on,-

but does not include a mine subject to the operation of the Mines Act,
1952 (XXXV of 1952), or a mobile unit belonging to the armed forces of
the Union, a railway running shed or a hotel, restaurant or eating place

Explanation. I.-For computing the number of workers for the purposes


of this clause all the workers in different groups and relays in a day shall
be taken into account

Explanation. II.-For the purposes of this clause, the mere fact that an
Electronic Data Processing Unit or a Computer Unit is installed in any
premises or part thereof, shall not be construed to make it a factory if no
manufacturing process is being carried on in such premises or part
thereof
2N    Occupier A factory means the person who has ultimate control over the affairs of
the factory: Provided that-

(i) in the case of a firm or other association of individuals, any one of the
individual partners or members thereof shall be deemed to be the
occupier

(ii) in the case of a company, any one of the directors shall be deemed to
be the occupier

(iii) in the case of a factory owned or controlled by the Central


Government or any State Government, or any local authority, the person
or persons appointed to manage the affairs of the factory by the Central
Government, the State Government or the local authority, as the case
may be, shall be deemed to be the occupier

Provided further that in the case of a ship which is being repaired, or on


which maintenance work is being carried out, in a dry dock which is
available for hire,-

(1) the owner of the dock shall be deemed to be the occupier for the
purposes of any matter provided for by or under-

(a) Section 6, Section 7, Section 7-A, Section 7-B, Section 11 or Section 12

(b) Section 17, in so far as it relates to the providing and maintenance of


sufficient and suitable lighting in or around the dock

(c) Section 18, Section 19, Section 42, Section 46, Section 47 or Section 49,
in relation to the workers employed on such repair or maintenance

(2) the owner of the ship or his agent or master or other officer-in-charge
of the ship or any person who contracts with such owner, agent or master
or other officer-in-charge to carry out the repair or maintenance work
shall be deemed to be the occupier for the purposes of any matter
provided for by or under Section 13, Section 14, Section 16 or Section 17
(save as otherwise provided in this proviso) or Chapter IV (except
Section 27) or Section 43, Section 44 or Section 45, Chapter VI, Chapter
VII, Chapter VIII, Chapter IX or Section 108, Section 109 or Section 110,
in relation to--

(a) the workers employed directly by him, or by or through any agency

(b) the machinery, plant or premises in use for the purpose of carrying
out such repair or maintenance work by such owner, agent, master or
other officer-in-charge or person
2O    ***
2P    Prescribed Prescribed by rules made by the Sate Government under this Act;
2Q    ***
2R    Relay/Shift Where work of the same kink is carried out by two or more sets of
workers working during different periods of the day, each of such sets is
called a "group" or "relay" and each of such periods is called a "shift"

Offences/Penalties under This Act


Section    Offence    Penalty
92 Contravention of any provisions of the Act, save as Imprisonment upto 2 years and / or fine
is otherwise expressly provided in the Act and upto Rs. 1 lakh, if the contravention is
subject to the provisions of Section 93 continued after conviction, a further fine
of upto one thousand rupees for each day
92 In case of accident causing death due to Fine of not less than Rs. 25000
contravention of the provisions of Chapter IV or of
any rules made under Section 87
92 In case of accident causing serious body injury due Fine of not less than Rs. 50000
to contravention of the provisions of Chapter IV or
of any rules made under Section 87
94 Having been convicted of any offence punishable Imprisonment upto 3 years and / or fine
under Section 92 is again guilty of an offence not less than Rs. 10000 but may extend
involving a contravention of the same provision upto Rs. 2 lakhs.
94 Repeat Offence for Contravention of Section 87 or Fine upto Rs. 35000 if death is caused;
Chapter IV resulting in death or bodily injury. Rs. 10000 if serious bodily injury.
95 Obstructing the Inspector or failing to produce any Imprisonment upto 6 months and / or fine
registers or documents on demand by the Inspector upto Rs. 10000.
96 Wrongful disclosure of analysis under Sec. 91. Imprisonment upto 6 months and / or fine
upto Rs. 10000.
96-A (1) Contravention of Sec. 41-B, 41-C & 41-H or any Imprisonment upto 7 years and / or fine
rules made thereunder upto Rs. 2 lakh.
96-A (1) Continuing offence of Contravention of Sec. 41-B, Rs. 5000 for each day after contravention
41-C & 41-H.
96-A (2) Continuing contravention beyond one year after Imprisonment upto 10 years
date of conviction under Section 96-A(1) with
regard to a repeat offence for contravention of Sec.
41-B, 41-C & 41-H.
97 Contravention of any section, rules or orders by Fine of Rs. 500.
workers.
98 Knowingly using or attempting to use false Imprisonment upto 2 months and / or fine
certificate of fitness granted under Section 70 upto Rs. 1000.
99 Permitting double employment of child in a factory Fine of Rs.1000 to the parent or guardian
on a day where he has already working in another of the child
factory

PAYMENT OF WAGES ACT:-

Applicability of the Act


Objectives:
The Payment of Wages Act aims at regulating the payment of wages to certain classes of
employed persons. It provides for the imposition of fines and deductions and lays down wage
periods and time and mode of payment of wages. Thus the Act ensures payment of wages in a
particular form at regular intervals without unauthorised deductions.

Applicability:
The Payment of Wages Act extends to the whole of India.
It is applicable to any factory, any railway establishment and any industrial or other establishment
like tramway service, motor transport service, air, oilfied, plantation, workshop, or other
establishment producing, adapting or manufacturing any article, establishments engaged in
construction, development and maintenance of buildings, roads, bridges or canals, navigation,
irrigation or water supply,transmission, generation and distribution of electricity/power and any
other establishment notified by the Central or a State Government.
The Act is not applicable to persons whose wages are 1600 or more per month.

Definitions Belonging To This Act


2(1)    Employed person Includes the legal representative of a
deceased employed person
2(1A) Employer The legal representative of a deceased
employer
2(1B)    Factory A factory as defined in clause (m) of Section
2 of the Factories Act, 1948 (63 of 1948), and
includes any place to which the provisions of
that Act have been applied under sub-section
(1) of Section 85 thereof
2(2)    Industrial or other (a) tramway service, or motor transport
establishment service engaged in carrying passengers or
goods or both by road for hire or reward

(aa) air transport service other than such


service belonging to, or exclusively
employed in the military, naval or air forces
of the Union or the Civil Aviation
Department of the Government of India

(b) dock, wharf or jetty

(c) inland vessel, mechanically propelled

(d) mine, quarry or oilfield

(e) plantation

(f) workshop or other establishment in which


articles are produced, adapted or
manufactured, with a view to their use,
transport or sale

(g) establishment in which any work relating


to the construction, development or
maintenance of buildings, roads, bridges or
canals, or relating to operations connected
with navigation, irrigation or the supply of
water, or relating to the generation,
transmission and distribution of electricity or
any other form of power is being carried on

(h) any other establishment or class of


establishment which the Central Government
or a State Government may, having regard to
the nature thereof, the need for protection of
persons employed therein and other relevant
circumstances, specify, by notification in the
Official Gazette
2(2A) Mine The meaning assigned to it in clause (j) of
sub-section (1) of Section 2 of the Mines Act,
1952 (35 of 1952)
2(3)    Plantation The meaning assigned to it in clause (f) of
Section 2 of the Plantations Labour Act, 1951
(69 of 1951)
2(4)    Prescribed "prescribed" means prescribed by rules made
under this Act;
2(5)    Railway The meaning assigned to it in clause (6) of
administration Section 3 of the Indian Railways Act, 1890 (9
of 1890); and
2(6)    Wages All remuneration (whether by way of salary,
allowances or otherwise) expressed in terms
of money or capable of being so expressed
which would, if the terms of employment,
express or implied, were fulfilled, be payable
to a person employed in respect of his
employment or of work done in such
employment and includes---

(a) any remuneration payable under any


award or settlement between the parties or
order of a court

(b) any remuneration to which the person


employed is entitled in respect of overtime
work or holidays or any leave period

(c) any additional remuneration payable


under the terms of employment (whether
called a bonus or by any other name)

(d) any sum which by reason of termination


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

(e) any sum to which the person employed is


entitled under any scheme framed under any
law for the time being in force

but does not include-

(1) any bonus (whether under a scheme of


profit-sharing or otherwise) which does not
form part of remuneration payable under the
terms of employment which is not payable
under any award or settlement between the
parties or order of a Court

(2) the value of any house-accommodation,


or of the supply of light, water, medical
attendance or other amenity or of any service
excluded from the computation of wages by a
general or special order of the State
Government

(3) any contribution paid by the employer to


any pension or provident fun, and the interest
which may have accrued thereon
(4) any travelling allowance or the value of
any travelling concession

(5) any sum paid to the employed person to


defray special expenses entailed on him by
the nature of his employment

(6) any gratuity payable on the termination of


employment in cases other than those
specified in sub-clause (d).

Responsibility for payment of wages

(1) Every employer shall be responsible for the payment of all wages required to be paid under this Act to
persons employed by him and in case of persons employed,-

(a) in factories, if a person has been named as the manager of the factory under clause (f) of sub-section (1) of
section 7 of the Factories Act, 1948;

(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and
control of the industrial or other establishments;

(c) upon railways (other than in factories), if the employer is the railway administration and the railway
administration has nominated a person in this behalf for the local area concerned;

(d) in the case of contractor, a person designated by such contractor who is directly under his charge; and

(e) in any other case, a person designated by the employer as a person responsible for complying with the
provisions of the Act,

the person so named, the person responsible to the employer, the person so nominated or the person so
designated, as the case may be, shall be responsible for such payment.

(2) Notwithstanding anything contained in sub-section (1), it shall be the responsibility of the employer to make
payment of all wages required to be made under this Act in case the contractor or the person designated by the
employer fails to make such payment.".

Deductions which may be made from wages

(1) Notwithstanding the provisions of sub-section (2) of Section 47 of the Indian Railways Act, 1989 (24 of
1989), the wages of an employed person shall be paid to him without deductions of any kind except those
authorised by or under this Act.
Explanation I.- Every payment made by the employed person to the employer or his agent shall, for the
purposes of this Act, be deemed to be a deduction from wages.
Explanation II.- Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person
employed of any of the following penalties, namely:-
(i) the withholding of increment or promotion (including the stoppage of increment at an efficiency bar) ;
(ii) the reduction to a lower post or time-scale or to a lower stage in a time-scale ; or
(iii) suspension ;

shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the
imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this
behalf by the Appropriate Government by notification in the Official Gazette.

(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of
this Act, and may be of the following kinds only, namely:-
(a) fines ;
(b) deductions for absence from duty ;
(c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody ; or for
loss of money for which he is required to account, where such damage or loss is directly attributable to his
neglect or default ;
(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set
up under any law for the time being in force (whether the Government or the board is the employer or not) or
any other authority engaged in the business of subsiding house-accommodation which may be specified in this
behalf by the Appropriate Government by notification in the Official Gazette ;
(e) deductions for such amenities and services supplied by the employer as the Appropriate Government or any
officer specified by it in this behalf may, by general or special order, authorise.

Explanation.- The word "services" in this clause does not include the supply of tools and raw materials required
for the purposes of employment ;

(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or
conveyance allowance), and the interest due in respect thereof, or for adjustment of over-payments of wages ;
(ff) deductions for recovery of loans made from any fund constituted for the welfare of labour in accordance
with the rules approved by the Appropriate Government, and the interest due in respect thereof ;
(fff) deductions for recovery of loans granted for house building or other purposes approved by the Appropriate
Government, and the interest due in respect thereof ;
(g) deductions of income tax payable by the employed person ;
(h) deductions required to be made by order of a Court or other authority competent to make such order ;
(i) deductions for subscriptions to, and for repayment of advances from any provident fund to which the
Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined in Section 58-A of
the Indian Income Tax Act, 1922 (11 of 1922), or any provident fund approved in this behalf by the Appropriate
Government, during the continuance of such approval ;
(j) deductions for payments to cooperative societies approved by the Appropriate Government or any officer
specified by it in this behalf or to a scheme of insurance maintained by the Indian Post Office ; and
(k) deductions, made with the written authorisation of the person employed for payment of any premium of his
life insurance policy to the Life Insurance Corporation of India established under the Life Insurance
Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State
Government or for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of
any such Government ;
(kk) deductions made, with the written authorisation of the employed person, for the payment of his
contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act,
1926 (16 of 1926) for the welfare of the employed persons or the members of their families, or both, and
approved by the Appropriate Government or any officer specified by it in this behalf, during the continuance of
such approval ;
(kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable
by him for the membership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926) ;
(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds ;
(m) deductions for recovery of losses sustained by a railway administration on account of acceptance by the
employed person of counterfeit or base coins or mutilated or forged currency notes ;
(n) deductions for recovery of losses sustained by a railway administration on account of the failure of the
employed person to invoice, to bill, to collect or to account for the appropriate charges due to that
administration whether in respect of fares, freight, demurrage, wharfage and cranage or in respect of sale of
food in catering establishments or in respect of commodities in grain shops or otherwise ;
(o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds
incorrectly granted by the employed person where such loss is directly attributable to his neglect or default;
(p) deductions, made with the written authorisation of the employed person, for contribution to the Prime
Ministers National Relief Fund or to such other fund as the Central Government may, by notification in the
Official Gazette, specify;
(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of
its employees.

(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under
sub-section (2) in any wage-period from the wages of any employed person shall not exceed-
(i) in cases where such deductions are wholly or partly made for payments to cooperative societies under clause
(j) of sub-section (2), seventy-five per cent of such wages, and
(ii) in any other case, fifty per cent of such wages :

Provided that where the total deductions authorised under sub-section (2) exceed seventy-five per cent or, as the
case may be, fifty per cent of the wages, the excess may be recovered in such manner as may be prescribed.

(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the
wages of the employed person or otherwise any amount payable by such person under any law for the time
being in force other than Indian Railways Act, 1890 (9 of 1890)

Workmen’s Compensation Act , 1923

Objectives:
The act aims to provide workmen and their dependents, compensatory payment, in case of accidents arising out
of and in course of employment and causing either death or disablement of workmen.

Applicability:
The Act extends to the whole of India.

The act applies to factories, mines, docks, construction establishments, plantations, oilfields and other
establishments listed in Schedule II and III of the act but excludes establishments covered by the ESI Act.

Every employee including those employed through a contractor except casual employees, who is engaged for
the purposes of employer's business and who suffers an injury in any b accident arising out of and in the course
of his employment, shall be entitled for compensation under this Act.
The W.C Amendment Act, 1995, has extended the ambit of the Act to cover workers of newspaper
establishments, drivers, cleaners, etc working in connection with a motor vehicle, workers employed by Indian
companies abroad, persons engaged in spraying or dusting of insecticides or pesticides in agricultural
operations, mechanised harvesting and thrashing, horticultural operations and doing other mechanical jobs.

Documents Belonging To This Act


The First Schedule - S. 2(1),4: List Of Injuries Resulting in Permanent Total and
Partial Disablement  
The Second Schedule - S 2(1)(n) - List Of People Included In The Definition Of
Workmen  
The Third Schedule - S. 3 - List Of Occupational Diseases  
The Fourth Schedule - S.4 - Factors For Working Out Lump Sum Of Compensation
In Case of Permanent Disablement or Death

Authorities Empowered By This Act


Name of Authority Duties Powers
Central To determine the extent of the To add to the Schedule of employees involved in
Government    act and to make rules to give hazardous occupations or jobs involving occupational
effect to the Act diseases, and to make rules.
State Government To make rules to give effect to To make rules in the state for the purpose of carrying
the Act in the State and to out the provisions of this act, to appoint
implement the act in the State commissioners, To add to the Schedule of employees
involved in hazardous occupations or jobs involving
occupational diseases for the state.
Commissioners    Appointed by the State To receive deposits made by employers and require
Government to decide matters additional deposits, make an award determining the
relating to payment of total amount payable, to enforce the attendance of
compensation, receive witnesses and to take evidence
information regarding fatal
accidents.
Employer's liability for compensation

(1) If personal injury is caused to a workman by accident arising out of and in the course of his employment, his
employer shall be liable to pay compensation in accordance with the provisions of this Chapter :
Provided that the employer shall not be so liable-

(a) in respect of any injury which does not result in the total or partial disablement of the workman for a period
exceeding three days ;
(b) in respect of any injury, not resulting in death or permanent total disablement, caused by an accident which
is directly attributed to-
(i) the workman having been at the time therefore under the influence of drink of drugs, or
(ii) the wilful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the
purpose of securing the safety of workman, or
(iii) the wilful removal or disregard by the workman of any safety guard or other device which he knew to have
been provided for the purpose of securing the safety of workman;

(2) If a workman employed in any employment specified in Part A of Schedule III contracts any disease
specified therein as an occupational disease peculiar to that employment, or if a workman, whilst in the service
of an employer in whose service he has been employed for a continuous period of not less than six months
(which period shall not include a period of service under any other employer in the same kind of employment)
in any employment specified in Part B of Schedule III, contracts any disease specified therein as an
occupational disease peculiar to that employment, or if a workman whilst in the service of one or more
employers in any employment specified in Part C of Schedule III for such continuous period as the Central
Government may specify in respect of each such employment, contracts any disease specified therein as an
occupational disease peculiar to that employment, the contracting of the disease shall be deemed to be an injury
by accident within the meaning of the this section and, unless the contrary is proved, the accident shall be
deemed to have arisen out of, and in the course of, the employment :

Provided that if it is proved-


(a) that a workman whilst in the service of one or more employers in any employment specified in Part C of
Schedule III has contracted a disease specified therein as an occupational disease peculiar to that employment
during a continuous period which is less than the period specified under this sub-section for that employment,
and
(b) that the disease has arisen out of and in the course of the employment ; the contracting of such disease shall
deemed to be an injury by accident within the meaning of this section :

Provided further that if it is proved that a workman who having served under any employer in any employment
specified in Part B of Schedule III or who having served under one or more employers in any employment
specified in Part C of that Schedule, for a continuous period specified under this sub-section for that
employment and he has after the cessation of such service contracted any disease specified in the said Part B or
the said Part C, as the case may be, as an occupational disease peculiar to the employment and that such disease
arose out of the employment, the contracting of the disease shall be deemed to be an injury by accident within
the meaning of this section.

(2-A) If a workman employed in any employment specified in Part C of schedule III contracts any occupational
disease peculiar to that employment, the contracting whereof is deemed to be an injury by accident within the
meaning of this section, and such employment was under more than one employer, all such employers shall be
liable for the payment of the compensation in such proportion as the Commissioner may, in the circumstances,
deem just.
(3) The Central government or the State Government, after giving, by notification in the Official Gazette, not
less three months' notice of its intention so to do, may by a like notification, add any description of employment
to the employments specified in Schedule III, and shall specify in the case employments so added the diseases
which shall be deemed for the purposes of this section to be occupational diseases peculiar to those
employments respectively and thereupon the provisions of sub-section (2) shall apply, in the case of a
notification by the Central Government, within the territories to which this Act extends or, in case of a
notification by the State Government, within the State as if such diseases had been declared by this Act to be
occupational diseases peculiar to those employments.

(4) Save as provided by sub-sections (2), (2-A) and (3), no compensation shall be payable to a workman in
respect of any disease unless the disease is directly attributable to a specific injury by accident arising out of and
in the course of his employment.

(5) Noting herein contained shall be deemed to confer any right to compensation on a workman in respect of
any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against the employer or
any other person ; and no suit for damages shall be maintainable by a workman in any court of law in respect of
any injury-
(a) if he has instituted a claim to compensation in respect of the injury before a Commissioner ;or
(b) if an agreement has been come to between the workman and his employer providing for the payment of
compensation in respect of the injury in accordance with the provisions of this Act.

Definitions Belonging To This Act:-

2B    Commissione A Commissioner for Workmen's Compensation appointed under Section 20


r
2C    Compensatio Compensation as provided for by this Act
n
2D    Dependant Any of the following relatives of a deceased workman, namely-

(i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted


daughter, or a widowed mother; and

(ii) if wholly dependent on the earnings of the workman at the time of his death, a son
or a daughter who has attained the age of 18 years and who is infirm

(iii) if wholly or in part dependent on the earnings of the workman at the time of his
death-

(a) a widower,

(b) a parent other than a widowed mother,

(c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter


legitimate or illegitimate or adopted if married and a minor or if widowed and a minor,

(d) a minor brother or an unmarried sister or a widowed sister if a minor


(e) a widowed daughter-in-law,

(f) a minor child of a pre-deceased son,

(g) a minor child of a pre-deceased daughter where no parent of the child is alive, or

(h) a paternal grandparent if no parent of the workman is alive

Explanation.-For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause
(iii), references to a son, daughter or child include an adopted son, daughter or child
respectively
2E    Employer Includes any body of persons whether incorporated or not and any managing agent of
an employer and the legal representative of a deceased employer, and, when the
services of a workman are temporarily lent or let on hire to another person by the
person with whom the workman has entered into a contract of service or
apprenticeship, means such other person while the workman is working for him
2F    Managing Any person appointed or acting as the representative of another person for the purpose
agent of carrying on such other person's trade or business, but does not include an individual
manager subordinate to an employer
2FF    Minor A person who has not attained the age o 18 years
2G    Partial Where the disablement is of a temporary nature, such disablement as reduces the
disablement earning capacity of a workman in any employment in which he was engaged at the
time of the accident resulting in the disablement, and, where the disablement is of a
permanent nature, such disablement as reduces his earning capacity in every
employment which he was capable of undertaking at that time: provided that every
injury specified in Part II of Schedule I shall be deemed to result in permanent partial
disablement;
2H    Prescribed Prescribed by rules made under this Act
2I    Qualified Any person registered under any Central Act, Provincial Act or an Act of the
medical Legislature of a State providing for the maintenance of a register of medical
practitioner practitioners, or, in any area where no such last-mentioned Act is in force, any person
declared by the State Government, by notification in the Official Gazette, to be a
qualified medical practitioner for the purposes of this Act
2J    *** ***
2K    Seaman Any person forming part of the crew of any ship, but does not include the master of
the ship
2L    Total Such disablement, whether of a temporary or permanent nature, as incapacitates a
disablement workman for all work which he was capable of performing at the time of the accident
resulting in such disablement: provided that permanent total disablement shall be
deemed to result from every injury specified in Part I of Schedule I or from any
combination of injuries specified in Part II thereof where the aggregate percentage of
the loss of earning capacity, as specified in the said Part II against those injuries,
amounts to one hundred per cent or more
2M    Wages Includes any privilege or benefit which is capable of being estimated in money, other
than a travelling allowance or the value of any travelling concession or a contribution
paid by the employer of a workman towards any pension or provident fund or a sum
paid to a workman to cover any special expenses entailed on him by the nature of his
employment
2N    Workman Any person (other than a person whose employment is of a casual nature and who is
employed otherwise than for the purposes of the employer's trade or business) who is-

(i) a railway servant as defined in clause (34) of Section 2 of the Railways Act, 1989
(24 of 1989), not permanently employed in any administrative, district or sub-
divisional office of a railway and not employed in any such capacity as is specified in
Schedule II, or

(i-a) (a) a master, seaman or other member of the crew of a ship

(b) a captain or other member of the crew of an aircraft,

(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in
connection with a motor vehicle

(d) a person recruited for work abroad by a company, and who is employed outside
India I any such capacity as is specified in Schedule II and the ship, aircraft or motor
vehicle, or company, as the case may be, is registered in India, or

(ii) employed in any such capacity as is specified in Schedule II,


whether the contract of employment was made before or after the passing of this Act
and whether such contract is expressed or implied, oral or in writing; but does not
include any person working in the capacity of a member of the Armed Forces of the
Union and any reference to a workman who has been injured shall, where the
workman is dead, include a reference to his dependants or any of them

(2) The exercise and performance of the powers and duties of a local authority or of
any department acting on behalf of the Government shall, for the purposes of this Act,
unless a contrary intention appears, be deemed to be the trade or business of such
authority or department.

(3) The Central Government or the State Government, by notification in the Official
Gazette, after giving not less than three months' notice of its intention so to do, may,
by a like notification, add to Schedule II any class of persons employed in any
occupation which it is satisfied is a hazardous occupation, and the provisions of this
Act shall thereupon apply, in case of a notification by the Central Government, within
the territories to which the Act extends, or, in the case of a notification by the State
government, within the State, to such classes of persons:

Provided that in making addition, the Central Government or the State Government, as
the case may be, may direct that the provisions of this Act shall apply to such classes
of persons I respect of specified injuries only.

Amount of compensation

(1) subject to the provisions of this Act, the amount of compensation shall be as follows, namely:-

(a) where death results from the injury


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

(b) Where permanent total disablement results from the injury


an amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant
factor; or
an amount of ninety thousand rupees,
whichever is more;

Explanation 1.- For the purposes of clause (a) and clause (b), "relevant factor", in relation to a workman means
the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule
specifying the number of years which are the same as the completed years of the age of the workman on his last
birthday immediately preceding the date on which the compensation fell due ;

Explanation II.- Where the monthly wages of a workman exceeds four thousand rupees, his monthly wages for
the purposes of clause (a) and clause (b) shall be deemed to be four thousand rupees only;

(c) where permanent partial disablement results from the injury


(i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would
have been payable in the case of permanent total disablement as is specified therein as being the percentage of
the loss of earning capacity caused by that injury, and
(ii)in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case
of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified
medical practitioner) permanently caused by the injury ;

Explanation I.-Where more injures than one are caused by the same accident, the amount of compensation
payable under this head shall be aggregated but not so in any case as to exceed the amount which would have
been payable if permanent total disablement had resulted from the injuries;

Explanation II.- In assessing the loss of earning capacity for the purposes of sub-clause (ii), the qualified
medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different
injuries specified in Schedule I;

(d) Where temporary disablement, whether total or partial results from the injury
a half-monthly payment of the sum equivalent to twenty-five per cent of monthly wages of the workman, to be
paid in accordance with the provisions of sub- section (2).

(1-A) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable
to a workman in respect of an accident occurred outside India, the Commissioner shall take into account the
amount of compensation, if any, awarded to such workman in accordance with the law of the country in which
the accident occurred and shall reduce the amount fixed by him by the amount compensation awarded to the
workman in accordance with the law of that country;

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the sixteenth day-
(i) from the date if disablement where such disablement lasts for a period of twenty-eight days or more, or
(ii) after the expiry of a waiting period of three days from the date of disablement where such disablement lasts
for a period of less than twenty-eight days ; and thereafter half-monthly during the disablement or during a
period of five years, whichever period is shorter :

Provided that-
(a) there shall be deducted from any lump sum or half-monthly payments to which the workman is entitled the
amount of any payment or allowance which the workman has received from the employer by way of
compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly
payment, as the case may be; and
(b) no half-monthly payment shall in any case exceed the amount, if any by which half the amount of the
monthly wages of the workman before the accident exceeds half the amount of such wages which he is earning
after the accident.

Explanation.- Any payment or allowance which the workman has received from the employer towards his
medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation
within the meaning of clause (a) of the proviso.

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due there shall
be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-
month.

(4) If the injury of the workman results in his death, the employer shall, in addition to the compensation under
sub-section (1), deposit with the Commissioner a sum of two thousand five hundred rupees for payment of the
same to the eldest surviving dependant of the workman towards the expenditure of the funeral of such workman
or where the workman did not have a dependant or was not living with his dependant at the time of his death to
the person who actually incurred such expenditure.

Method of calculating wages

In this Act and for the purposes thereof the expression "monthly wages" means the amount of wages deemed to
be payable for a month's service (whether the wages are payable by the month or by whatever other period or at
piece rates), and calculated as follows, namely-
(a) where the workman has, during a continuous period of not less than twelve months immediately preceding
the accident, been in the service of the employer who is liable to pay compensation, the monthly wages of the
workman shall be one-twelfth of the total wages which have fallen due for payment to him by the employer in
the last twelve months of that period;
(b) where the whole of the continuous period of service immediately preceding the accident during which the
workman was in the service of the employer who is liable to pay the compensation was less than one month, the
monthly wages of the workman shall be the average monthly amount which, during the twelve months
immediately preceding the accident , was being earned by a workman employed on the same by the same
employer, or, if there was no workman employed, by a workman employed on similar work in the same
locality;
(c) in other cases including cases in which it is not possible for want of necessary information to calculate the
monthly wages under clause (b), the monthly wages shall be thirty times the total wages earned in respect of the
last continuous period of service immediately preceding the accident from the employer who is liable to pay
compensation, divided by the number of days comprising such period.

Explanation.- A period of service shall, for the purposes of this section, be deemed to be continuous which has
not been interrupted by a period of absence from work exceeding fourteen days.

Payment of Bonus Act , 1965

Applicability of the Act


Objectives:
The object of the Payment of Bonus Actis to provide for the payment of bonus (linked with profit or
productivity) to persons employed in certain establishments and matters connected therewith.

Applicability:
The Payment of Bonus Act extends to the whole of India and is applicable to every factory and to every
establishment wherein 20 or more workers are employed on any day during an accounting year.
The Central/State Governmenment can however, extend its provisions to any establishment employing less
than 20 but more than 10 employeess.
For the purpose of calculating the number of employees for applicability of the Act, part-time employees are
also included.
Every employee not drawing more than Rs.3500 per month who has worked for not less than 30 days in an
accounting year, shall be eligible for bonus.

Definitions Belonging To This Act


2(1)    Accounting (i) in relation to a corporation, the year ending on the day on which the books and
year accounts of the corporation are to be closed and balanced

(ii) in relation to a company, the period in respect of which any profit and loss
account of the company laid before it in annual general meeting is made up, whether
that period is a year or not

(iii) in any other case--

(a) the year commencing on the 1st day of April

(b) if the accounts of an establishment maintained by the employer thereof are closed
and balanced on any day other than the 31st day of Marc, then, at the option of the
employer, the year ending on the day on which its accounts are so closed and
balanced:

Provided that an option once exercised by the employer under paragraph (b) of this
sub-clause shall not again be exercised except with the previous permission in writing
of the prescribed authority and upon such conditions as that authority may think fit
2(2)    Agricultural The same meaning as in the Income-tax Act
income
2(3)    Agricultural Any law for the time being in force relating to the levy of tax on agricultural income
income-tax
law
2(4)    Allocable (a) in relation to an employer, being a company other than banking company which
surplus has not made the arrangements prescribed under the Income-tax Act for the
declaration and payment within India of the dividends payable out of its profits in
accordance with the provisions of Section 194 of that Act, sixty-seven per cent of the
available surplus in an accounting year

(b) in any other case, sixty per cent of such available surplus,
2(5)    Appropriate (i) in relation to an establishment in respect of which the appropriate Government
Government under the Industrial Disputes Act, 1947 (14 of a1947), is the Central Government, the
Central Government

(ii) in relation to any other establishment, the Government of the State in which that
other establishment is situate
2(6)    Available The available surplus under Section 5
surplus
2(7)    Award An interim or a final determination of any industrial dispute or of any question
relating thereto by any Labour Court, Industrial Tribunal or National Tribunal
constituted under the Industrial Disputes Act 1947 (14 of 1947), or by any other
authority constituted under any corresponding law relating to investigation and
settlement of industrial disputes in force in a State and includes an arbitration award
made under Section 10-A of that Act or under that law
2(8)    Banking A banking company as defined in Section 5 of the Banking Companies Act, 1949 (10
company of 1949), and includes the State Bank of India, any subsidiary bank as defined in the
State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), any corresponding
new bank specified in the First Schedule to the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (5 of 1970), any corresponding new bank
constituted under Section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), any co-operative bank as defined in clause (i)
of Section 2 of the Reserve Bank of India Act, 1934 (2 of 1934), and any other
banking institution which may be notified in this behalf by the Central Government
2(9)    Company Any company as defined in Section 3 of the Companies Act, 1956 (1 of 1956), and
includes a foreign company within the meaning of Section 591 of that Act
2(10) Co-operative A society registered or deemed to be registered under the Co-operative Societies Act,
society 1912 (2 of 1912), or any other law for the time being in force in any Sate relating to
co-operative societies
2(11) Corporation Any body corporate established by or under any Central, Provincial or State Act but
does not include a company or a co-operative society
2(12) Direct tax (a) any tax chargeable under-

(i) the Income-tax Act

(ii) the Super Profits Tax Act, 1963 (14 of 1963)

(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964)

(iv) the agricultural income-tax law; and


(b) any other tax which, having regard to its nature or incidence may be declared by
the Central Government, by notification in the Official Gazette, to be a direct tax for
the purposes of this Act
2(13) Employee Any person (other than an apprentice) employed on a salary or wage not exceeding
three thousand and five hundred rupees per mensem in any industry to do any skilled
or unskilled manual, supervisory, managerial, administrative, technical or clerical
work of hire or reward, whether the terms of employment be express of implied
2(14) Employer (i) in relation to an establishment which is a factory, the owner or occupier of the
factory, including the agent of such owner or occupier, the legal representative of a
deceased owner or occupier and where a person has been named as a manager of the
factory under clause (f) of sub-section (1) of Section 7 of the Factories Act, 1948 (63
of 1948), the person so named; and

(ii) in relation to any other establishment, the person who, or the authority which, has
the ultimate control over the affairs of the establishment and where the said affairs are
entrusted to a manager, managing director or managing agent, such manager,
managing director or managing agent
2(15) Establishmen Any establishment other than an establishment in public sector
t in private
sector
2(16) Establishmen An establishment owned, controlled or managed by-
t in public
sector (a) a Government company as defined in Section 617 of the Companies Act, 1956 (1
of 1956)

(b) a corporation in which not less than forty percent of its capital is held (whether
singly or taken together) by-

(i) the Government

(ii) the Reserve Bank of India

(iii)d a corporation owned by the Government or the Reserve Bank of India


2(17) Factory The same meaning as in clause (m) of Section 2 of the Factories Act, 1948 (63 of
1948)
2(18) Gross profits The gross profits calculated under Section 4
2(19) Income-tax The Income-tax Act, 1961 (43 of 1961)
Act
2(20) Prescribed Prescribed by rules made under this Act
2(21) Salary or All remuneration (other than remuneration in respect of over-time work) capable of
wage being expressed in terms of money, which would, if the terms of employment, express
of implied, were fulfilled, be payable to an employee in respect of his employment or
of work done in such employment and includes dearness allowance (that is to say, all
cash payments, by whatever name called, paid to an employee on account of arise in
the cost of living), but does not include-

(i) any other allowance which the employee is for the time being entitled to

(ii) the value of any house accommodation or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of
foodgrains or other articles

(iii) any travelling concession

(iv)any bonus (including incentive, production and attendance bonus)

(v) any contribution paid or payable by the employer to any pension fund or provident
fund or for the benefit of the employee under any law for the time being in force

(vi) any retrenchment compensation or any gratuity or other retirement benefit


payable to the employee or any ex gratia payment made to him

(vii) any commission payable to the employee

Explanation.---Where an employee is given in lieu of the whole or part of the salary


or wage payable to him, free food allowance or free food by his employer, such food
allowance or the value of such food shall, for the purpose of this clause, be deemed to
form part of the salary or wage of such employee
2(22) Words and Words and expressions used but not defined in this Act and defined in the Industrial
expressions Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to
used but not them in that Act.
defined in this
Ac

Authorities Empowered By This Act


Name of Authority Duties Powers
Central To determine the extent of the To make rules to implement the provisions of the act
Government    act and to make rules to give across the country. Where the Central Government is
effect to the Act the appropriate government, to exempt establishments
from any of the provisions of the Act.
State Government To implement the provisions of Where the State Government is the appropriate
the Act in the State government, to exempt establishments from any of the
provisions of the Act
Inspectors    To implement and enforce the To require an employer to furnish information, enter
Act and inspect any premises at all reasonable hours with
assistants, examine any register record or notice,
examine any people on the premises and make copies
of or take extracts from any register, record

Minimum Wages Act , 1948

Applicability of the Act


Objectives:
The Minimum Wages Act was formulated to provide for fixing minimum rates of wages in certain
employments. The Act also governs certain service conditions such as working hours, weekly rest days and
payment of overtime for employees covered under the act.

Applicability:
The Minimum Wages Act extends to whole of India and applies to all establishments employing one or more
persons and engaged in any of scheduled employments. It covers every employee who is engaged in any
scheduled employment, including an out worker to whom materials are given out for manufacturing or
processing at his own premises.

Definitions Belonging To This Act


2A    Adolescent A person who has completed his fourteenth year of age but has not completed his
eighteenth year
2AA    Adult A person who has completed his eighteenth year of age
2B    Appropriate (i) in relation to any scheduled employment carried on by or under the authority of the
Government Central Government or a railway administration, or in relation to a mine, oilfield or
major port, or any corporation established by a Central Act, the Central Government

(ii) in relation to any other scheduled employment, the State Government


2BB    Child A person who has not completed his fourteenth year of age
2C    Competent The authority appointed by the appropriate Government by notification in its Official
authority Gazette to ascertain from time to time the cost of living index number applicable to
the employees employed in the scheduled employments specified in such notification
2D    Cost of In relation to employees in any scheduled employment in respect of which minimum
living index rates of wages have been fixed, means the index number ascertained and declared by
number the competent authority by notification in the Official Gazette to be the cost of living
index number applicable to employees in such employment
2E    Employer Any person who employs, whether directly or through another person, or whether on
behalf of himself or any other person, one or more employees in any scheduled
employment in respect of which minimum rates of wages have been fixed under this
Act, and includes, except in sub-section (3) of Section 26,--

(i) in a factory where there is carried on any scheduled employment in respect of


which minimum rates of wages have been fixed under this Act, any person named
under clause (f) of sub-section (1) of Section 7 of the Factories Act, 1948 (63 of
1948), as manager of the factory

(ii) in any scheduled employment under the control of any Government in India in
respect of which minimum rates of wages have been fixed this Act, the person or
authority appointed by such Government for the supervision and control of employees
or where no person or authority is so appointed, the head of the department

(iii) in any scheduled employment under the local authority in respect of which
minimum rates of wages have been fixed this Act, the person appointed by such
authority for the supervision and control of employees or where no person is so
appointed, the chief executive officer of the local authority

(iv) in any other case where there is carried on any scheduled employment in respect
of which minimum rates of wages have been fixed under this Act, any person
responsible to the owner for the supervision and control of the employees or for the
payment of wages
2F    Prescribed Prescribed by rules made under made under this Act
2G    Scheduled An employment specified in the Schedule, or any process or branch of work forming
employment part of such employment
2H    Wages All remuneration, capable of being expressed in terms of money, which would, if the
terms of the contract of employment, express or implied, were fulfilled, be payable to
a person employed in respect of his employment or of work done in such employment,
and includes house rent allowance, but does not include-

(i) the value of-

(a) any house-accommodation, supply of light, water, medical attendance, or

(b) any other amenity or any service excluded by general or special order of the
appropriate Government

(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or
under any scheme of social insurance

(iii) any travelling allowance or the value of any travelling concession

(iv) any sum paid to the person employed to defray special expenses entailed on him
by the nature of his employment

(v) any gratuity payable on discharge


2I    Employee Any person who is employed for hire or reward to do any work, skilled or unskilled,
manual or clerical, in a scheduled employment in respect of which minimum rates of
wages have been fixed; and includes an out-worker to whom any articles or materials
are given out by another person to be made up, cleaned, washed, altered, ornamented,
finished, repaired, adapted or otherwise processed for sale for the purposes of the
trade or business of that other person where the process is to be carried out either in
the home of the out-worker or in some other premises not being premises under the
control and management of that other person; and also includes an employee declared
to be an employee by the appropriate Government; but does not include any member
of the Armed Forces of the Union.
Authorities Empowered By This Act
Name of Authority Duties Powers

Central To determine the extent of the


To give directions to the State Government regarding
Government    act and to make rules to giveexecution of the Act. Where the appropriate
effect to the Act, and to fix the
government is the Central Government, to fix the
minimum rate of wages minimum rate of wages, to appoint advisory boards
and committees, inspectors, and officers to hear
claims, t
State Government To make rules to give effect to Where the appropriate government is the State
the Act in the State and to Government, to fix the minimum rate of wages, to
implement the act in the State, appoint advisory boards and committees to advise it
and to fix the minimum rate of on this matter, to appoint inspectors and officers to
wages in the state hear claims, and to make rules and add to the
Schedule
Committee & Sub- Appointed by the appropriate Hold enquiries & advise the Government in fixation
committee    government to advise the or revision of minimum wages.
Government in fixation &
revision of minimum wages.
Advisory Board    For the purpose of coordinating
the work of committees and
sub-committees, appointed
under Section 5 and advising
the appropriate Government
generally in the matter of fixing
and revising minimum rates of
wages
Central Advisory For the purpose of advising the
Board    Central and State Governments
in the matters of the fixation and
revision of minimum rates of
wages and other matters under
this Act and for coordinating the
work of the Advisory Boards
Inspectors    To implement and enforce the To require an employer to furnish information, enter
Act and inspect any premises at all reasonable hours with
assistants, examine any register record or notice,
examine any people on the premises and make copies
of or take extracts from any register, record
Authority to hear Appointed by the Appropriate To hear and decide on all claims arising out of
claims    Government to hear & decide payment of less than the Minimum Rate of Wages
claims relating to payment of
less than minimum wages.

Industrial Disputes Act , 1947

Applicability of the Act


Objectives:
The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery
and procedure for the investigation and settlement of industrial disputes by negotiations.

The Act also lays down


(a) The provision for payment of compensation to the Workman on account of closure or lay off or
retrenchment.
(b) The procedure for prior permission of appropriate Government for laying off or retrenching the workers or
closing down industrial establishments
(c) Unfair labour practices on part of an employer or a trade union or workers.

Applicability:
The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on
any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen
employed therein.
Every person employed in an establishment for hire or reward including contract labour, apprentices and part
time employees to do any manual, clerical,skilled, unskilled, technical, operational or supervisory work, is
covered by the Act.
This Act though does not apply to persons mainly in managerial or administrative capacity,persons engaged in
a supervisory capacity and drawing > 1600 p.m or executing managerial functions and persons subject to
Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.

Documents Belonging To This Act


Schedule I - S 2(n)(6): Industries Which May Be Declared Public Utility Services  
Schedule II - S7: Matters Within The Jurisdiction Of Labour Courts  
Schedule III - S 7A: Matters Within The Jurisdiction Of Industrial Tribunal  
Schedule IV - S 9A: Conditions Of Service For Change Of Which Notice Is To Be
Given  
Schedule V - S 2(ra): Unfair Labour Practices 

Definitions Belonging To This Act


2A    Appropriat (i) in relation to any Industrial Disputes concerning any industry carried on by or under
e the authority of the Central Government or by a railway company or concerning any
Governmen such controlled industry as may be specified in this behalf by the Central Government or
t in relation to an Industrial Dispute concerning a Dock Labour Board established under
Section 5-A of the Dock Workers (Regulation of employment) Act, 1948, (9 of 1948),
or the Industrial finance Corporation of India Limited formed and registered under the
Companies Act, 1956, or the employees' State Insurance Corporation established under
Section 3 of the employees' State Insurance Act, 1948 (34 of 1948), or the Board of
Trustees constituted under Section 3-A of the Coal Mines Provident Fund and
Miscellaneous provisions Act, 1948 (46 of 1948), or the Central Board of Trustees and
the State Boards of Trustees constituted under Section 5-A and Section 5-B,
respectively, of the employees' Provident Fund and Miscellaneous Provisions Act, 1952
(19 of 1952), or the Life Insurance Corporation of India established under Section 3 of
the Life Insurance Corporation Act, 1956 (31 of 1956), or the Oil and Natural Gas
Corporation Limited registered under the Companies Act, 1956 (1 of 1956) or the
Deposit Insurance and Credit Guarantee Corporation established under Section 3 of the
Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), or the
Central Warehousing Corporation established under Section 3 of the Warehousing
Corporations Act, 1962 (58 of 1962), or the Unit Trust of India established under
Section 3 of the Unit Trust of India Act, 1963 (52 of 1963), or the Food Corporation of
India established under Section 3, or a Board of Management established for two or
more contiguous States under Section 16 of the Food corporations Act, 1964 (37 of
1946), or the Airports Authority of India constituted under Section 3 of the Airports
Authority of India Act, 1994 (55 of 1994), or a Regional Rural Banks Act, 1976 (21 of
1976), or the Export Credit and Guarantee Corporation Limited or the Industrial
Reconstruction Corporation of India Limited, or the Banking Service Commission
established, under Section 3 of the Banking Service Commission Act, 1957, or an air
transport service, or a banking or an insurance company, a mine, an oilfield, a
Cantonment Board, or a major port, the Central Government, and

(ii) in relation to any other Industrial Dispute, the State Government


2AAA Average The average of the wages payable to a workman-
pay
(i) in the case of monthly paid workman, in the three complete calendar months,
(ii) in the case of monthly paid workman, in the four complete week,

(iii) in the case of daily paid workman, in the twelve full working days, preceding the
date on which the average pay becomes payable if the workman had worked for three
complete calendar months or four complete weeks or twelve full working days, as the
case may be, and where such calculation cannot be made, the average pay shall be
calculated as the average of the wages payable to a workman during the period he
actually worked
2AA Arbitrator Includes an umpire
2B    Award An interim or a final determination of any industrial dispute or of any question relating
thereto by any Labour Court, Industrial Tribunal or National Industrial Tribunal and
includes an arbitration award made under Section 10-A
2BB    Banking A banking company as defined in Section 5 of the Banking Companies Act, 1949 (10 of
company 1949), having branches or other establishments in more than one State, and includes the
Export-Import Bank of India, the Industrial Reconstruction Bank of India, the National
Housing Bank established under Section 4 of the National Housing Bank Act, 1987, the
Industrial Development Bank of India, the Small Industries Development Bank of India
established under Section 3 of the Small Industries Development Bank of India Act,
1989, the Reserve Bank of India, the State Bank of India, a corresponding new bank
constituted under Section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970, a Corresponding new bank constituted under Section 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, and any
subsidiary bank, as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38
of 1959)
2C    Board A Board of Conciliation constituted under this Act
2CC Closure The permanent closing down of a place of employment or part thereof
2D    Conciliation A conciliation officer appointed under this Act
officer
2E    Conciliation Any proceeding held by a conciliation officer or Board under this Act
proceeding
2EE    Controlled Any industry the control of which by the Union has been declared by any Central Act to
industry be expedient in the public interest
2F    Court A Court of Inquiry constituted under this Act
2G    Employer (i) in relation to an industry carried on by or under the authority of any department of
the Central Government or a State Government, the authority prescribed in this behalf,
or where no authority is prescribed, the head of the department

(ii) in relation to an industry carried on by or on behalf of a local authority, the chief


executive officer of that authority

2GG Executive In relation to a trade union, means the body by whatever name called, to which the
management of the affairs of the trade union is entrusted
2H    * * *
2I    Independen (i) A person shall be deemed to be "independent" for the purpose of his appointment as
t Person the chairman or other member of a Board, Court or Tribunal, if he is unconnected with
the industrial dispute referred to such Board, Court or Tribunal or with any industry
directly affected by such dispute:
Provided that no person shall cease to be independent by reason only of the fact that he
is a shareholder of an incorporated company which is connected with, or likely to be
affected by, such industrial dispute; but in such a case, he shall disclose to the
appropriate Government the nature and extent of the shares held by him in such
company
2J    Industry Any business, trade, undertaking, manufacture or calling of employers and includes any
calling, service, employment, handicraft, or industrial occupation or avocation of
workmen

_______________________________________________________________________
___________

Section 2(j) shall stand substituted as under w.e.f. the date to notified:

Any systematic activity carried on by cooperation between an employer and his


workmen (whether such workmen are employed by such employer directly or by or
through any agency, including a contractor) for the production, supply or distribution of
goods or service with a view to satisfy human wants or wishes (not being wants or
wishes which are merely spiritual or religious in nature), whether or not,--

(i) any capital has been invested for the purpose of carrying on such activity

(ii) such activity is carried on with a motive to make any gain or profit, and includes-

(a) any activity of the Dock Labour Board established under Section 5-A of the Dock
Workers (Regulation of Employment) Act, 1948 (9 of 1948)

(b) any activity relating to the promotion of sales or business or both carried on by an
establishment,

but does not include-

(1) any agriculture operation except where such agricultural operation is carried on in an
intergrated manner with any other activity (being any such activity as is referred to in
the foregoing provisions of this clause) and such other activity is the predominant one.

Explanation.-For the purposes of this sub-clause, "agricultural operation" does not


include any activity carried on in a plantation as defined in clause (f) of Section 2 of the
Plantations Labour Act, 1951

(2) hospitals or dispensaries

(3) educational, scientific, research or training institutions; or

(4) institutions owned or managed by organisations wholly or substantially engaged in


any charitable, social or philanthropic service; or

(5) khadi or village industries; or

(6) any activity of the Government relatable to the sovereign functions of the
government including all the activities carried on by the departments o the Central
Government dealing with defence research, atomic energy and space; or

(7) any domestic service; or

(8) any activity, being a profession practised by an individual or body of individuals, if


the number of persons employed by the individuals or body of individuals in relation to
such profession is less than ten; or

(9) any activity, being an activity carried on by a co-operative society or a club or any
other like body of individuals, if the number of persons employed by the co-operative
society, club or other like body of individuals in relation to such activity is less than ten

2K    Industrial Any dispute or difference between employers and employers, or between employers and
dispute workmen, or between workmen and workmen, which is connected with the employment
or non-employment or the terms of employment or with the conditions of labour, of any
person
2KK Lay-off (with its grammatical variations and cognate expressions) means the failure, refusal or
K    inability of an employer on account of shortage of coal, power or raw materials or the
accumulation of stocks or the breakdown of machinery or natural calamity or for any
other connected reason to give employment to a workman whose name is borne on the
muster-rolls of his industrial establishment and who has not been retrenched

Explanation.---Every workman whose name is borne on the muster-rolls of the industrial


establishment and who presents himself for work at the establishment at the time
appointed for the purpose during normal working hours on any day and is not given
employment by the employer within two hours of his so presenting himself shall be
deemed to have been laid off for that day within the meaning of this clause

Provided that if the workman, instead of being given employment at the commencement
of any shift for any day is asked to present himself for the purpose during the second
half of the shift for the day and is given employment then, he shall be deemed to have
been laid off only for one half of that day:

Provided further that if he is not given any such employment even after so presenting
himself, he shall not be deemed to have been laid off for the second half of the shift for
the day and shall be entitled to full basic wages and dearness allowance for that part of
the day
2KA Industrial An establishment or undertaking in which any industry is carried on:
establishme
nt or Provided that where several activities are carried on in an establishment or undertaking
undertaking and only one or some of such activities is or are an industry or industries, then--

(a) if any unit of such establishment or undertaking carrying on any activity, being an
industry, is severable from the other unit or units of such establishment or undertaking,
such unit shall be deemed to be a separate industrial establishment or undertaking;

(b) if the predominant activity or each of the predominant activities carried on in such
establishment or undertaking or any unit thereof is an industry and the other activity or
each of the other activities carried on in such establishment or undertaking or unit
thereof is not serverable from and is, for the purpose of carrying on, or aiding the
carrying on of, such predominant activity or activities, the entire establishment or
undertaking or, as the case may be, unit thereof shall be deemed to be an industrial
establishment or under taking;
2KK Insurance An insurance company as defined in Section 2 of the Insurance Act, 1938 (4 of 1938),
company having branches or other establishments in more than one State
2KK Khadi The meaning assigned to it in clause (d) of Section 2 of the Khadi and village Industries
A    Commission Act, 1956 (61 of 1956)
2KK Labour A Labour Court constituted under Section 7
B    Court
2L    Lock-out The temporary closing of a place of employment or the suspension of work, or the
refusal by an employer to continue to employ any number of persons employed by him
2LLL Office In relation to a trade union, includes any member of the executive thereof, but does not
bearer include an auditor
2LA    Major port A major port as defined in clause (8) of Section 3 of the Indian Posts Act, 1908 (15 of
1908)
2LB    Mine A mine as defined in clause (j) of sub-section (1) of Section 2 of the Mines Act, 1952
(35 of 1952)
2LL    National A National Industrial Tribunal constituted under Section 7-B
Tribunal
2M    Prescribed Prescribed by rules made under this Act
2N    Public (i) any railway service or any transport service for the carriage of passengers or goods
utility by air
service
(i-a) any service in, or in connection with the working of, any major port or dock

(ii) any section of an industrial establishment, on the working of which the safety of the
establishment or the workmen employed therein depends

(iii) any postal, telegraph or telephone service

(iv) any industry which supplies power, light or water to the public

(v) any system of public conservancy or sanitation

(vi) any industry specified in the First Schedule which the appropriate Government may,
if satisfied that public emergency or public interest so requires, by notification in the
Official Gazette, declare to be a public utility service for the purposes of this Act, for
such period as may be specified in the notification

Provided that the period so specified shall not, in the first instance, exceed six months
but may, by a like notification, be extended from time to time, by any period not
exceeding six months, at any one time, if in the opinion of the appropriate Government,
public emergency or public interest requires such extension
2O    Railway A railway company as defined in Section 3 of the Indian Railways Act, 1890 (9 of 1890)
company
2OO Retrenchme The termination by the employer of the employer of the service of a workman for any
nt reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary
action, but does not include-

(a) voluntary retirement of the workman or


(b) retirement of the workman on reaching the age of superannuation if the contract of
employment between the employer and the workman concerned contains a stipulation in
that behalf

(bb) termination of the service of the workman as a result of the non-renewal of the
contract of employment between the employer and the workman concerned on its expiry
or of such contract being terminated under a stipulation in that behalf contained therein

(c) temination of the service of a workman on the ground of continued ill-health

(p) "Settlement" means a settlement arrived at in the course of conciliation proceeding


and includes a written agreement between the employer and workmen arrived at
otherwise than in the course of conciliation proceeding where such agreement has been
signed by the parties thereto in such manner as may be prescribed and a copy thereof has
been sent to an officer authorised in this behalf by the appropriate Government and the
conciliation officer
2Q    Strike A cessation of work by a body of persons employed in any industry acting in
combination, or a concerted refusal, or a refusal under a common understanding, of any
number of persons who are or have been so employed to continue to work or to accept
employment
2QQ Trade A trade union registered under the Trade Unions Act 1926 (16 of 1926)
union
2R    Tribunal An Industrial Tribunal constituted under Section 7-A and includes an Industrial Tribunal
constituted before the 10th day of March, 1957, under this Act
2RA Unfair Any of the practices specified in the Fifth Schedule
labour
practice
2RB    Village The meaning assigned to it in clause (h) of Section 2 of the Khadi and village Industries
industries Commission Act, 1956 (61 of 1956)
2RR Wages All remuneration capable of being expressed in terms of money, which would, if the
terms of employment, express or implied, were fulfilled, be payable to a workman in
respect of his employment, or of work done in such employment, and includes---

(i) such allowances (including dearness allowance) as the workman is for the time being
entitled to

(ii) the value of any house accommodation, or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of
foodgrains or other articles

(iii) any travelling concession

(iv) any commission payable on the promotion of sales or business or both

but does not include---

(a) any bonus

(b) any contribution paid or payable by the employer to any pension fund or provident
fund or for the benefit of the workman under any law for the time being in force

(c) any gratuity payable on the termination of his service

(s) "Workman" means any person (including an apprentice) employed in any industry to
do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for
hire or reward, whether the terms of employment be express or implied, and for the
purposes of any proceeding under this Act in relation to an industrial dispute, includes
any such person who has been dismissed, discharged or retrenched in connection with,
or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has
led to that dispute, but does not include any such person---

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of
1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison;
or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per mensem or exercises, either by the nature of the duties
attached to the office or by reason of the powers vested in him, functions mainly of a
managerial nature.
2S    Workman (s) "Workman" means any person (including an apprentice) employed in any industry to
do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for
hire or reward, whether the terms of employment be express or implied, and for the
purposes of any proceeding under this Act in relation to an industrial dispute, includes
any such person who has been dismissed, discharged or retrenched in connection with,
or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has
led to that dispute, but does not include any such person---

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of
1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison;
or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per mensem or exercises, either by the nature of the duties
attached to the office or by reason of the powers vested in him, functions mainly of a
managerial nature.

Authorities Empowered By This Act


Name of Authority Duties Powers
Central To determine the extent of the To appoint Conciliation Officers, Boards of
Government    act and to make rules to give Conciliation, Courts of Inquiry, Labour Courts and
effect to the Act Tribunals, to refer disputes to these bodies, to make
rules, to delegate its powers to other officers, and to
amend the Schedules to the Act
State Government To make rules to give effect to To appoint Conciliation Officers, Boards of
the Act in the State and to Conciliation, Courts of Inquiry, Labour Courts and
implement the act in the State Tribunals, to refer disputes to these bodies, to make
rules, to delegate its powers to other officers, and to
amend the Schedules to the Act
Conciliation Appointed by the appropriate To enter the premises of any establishment related to a
Officer    government to mediate in and dispute, enforce the attendance of any person for
promote the settlement of examination
industrial disputes
Court of Inquiry    Constituted by the appropriate To enter the premises of any establishment related to a
government for inquiring into dispute, enforce the attendance of any person for
any matter appearing to be examination, compel the production of documents,
connected with or relevant to an appoint one or more people having special knowledge
Industrial Dispute of the matter
Board of Appointed by the appropriate To enter the premises of any establishment related to a
Conciliation    government for promoting the dispute, enforce the attendance of any person for
settlement of an industrial examination, compel the production of documents,
dispute. appoint one or more people having special knowledge
of the matter
Labour Courts    Appointed by the appropriate To enter the premises of any establishment related to a
government for the adjudication dispute, enforce the attendance of any person for
of industrial disputes relating to examination, compel the production of documents,
any matter specified in the appoint one or more people having special knowledge
Second Schedule and for of the matter
performing such other functions
as may be assigned to them
under this Act.
Tribunals    Appointed by the appropriate To enter the premises of any establishment related to a
government for the adjudication dispute, enforce the attendance of any person for
of Industrial Disputes relating to examination, compel the production of documents,
matters specified in IInd or III rd appoint one or more people having special knowledge
Schedule. of the matter
National Tribunals Appointed by the appropriate To enter the premises of any establishment related to a
government for the adjudication dispute, enforce the attendance of any person for
of Industrial Disputes of examination, compel the production of documents,
national importance / affecting appoint one or more people having special knowledge
several States. of the matter

Trade Unions Act , 1926


Applicability of the Act
Objectives:
The Trade Unions Act, 1926 provides for registration of trade unions (including association of employers)
with a view to render lawful organisation of labour to enable collective bargaining. The act also confers certain
protection and privileges on a registered trade union.

Applicability:
The Trade Unions Act extends to the whole of India and it applies to all kinds of unions of workers and
associations of employers which aim at regularising labour-management relations.The Act is a Central
enactment but is administered by and large by the Sate Governments.Trade Unions whose, objectives are not
restricted to one State, are the subject of the Central Government.

Definitions Belonging To This Act


2A    Executive The body, by whatever name called, to which the management of the affairs of a Trade
Union, is entrusted
2B    Office- The case of a Trade Union, includes any member of the executive thereof, but does not
bearer include an auditor
2C    Prescribe Prescribed by regulations made under this Act
d
2D    Registered That office of a Trade Union, which is registered under this Act as the Head Office
office thereof
2E    Registered A Trade Union registered under this Act
Trade
Union
2F    Registrar (i) a Registrar of Trade Unions appointed by the appropriate Government under Section
3, and includes any additional or Deputy Registrar of Trade Unions; and

(ii) in relation to any Trade Union, the Registrar appointed for the State in which the
head or registered office, as the case may be, of the Trade Union is situated
2G    Trade Any dispute between employers and workmen or between workmen and workmen, or
dispute between employers and employers which is connected with the employment or non-
employment, or the terms of employment or the conditions of labour, of any person,
and "workmen" means all persons employed in trade or industry whether or not in the
employment of the employer with whom the trade dispute arises; and
2H    Trade Any combination, whether temporary or permanent, formed primarily for the purpose
Union of regulating between workmen and employers or between workmen and workmen, or
between employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more Trade
Unions;

Provided that this Act shall not affect-

(i) any agreement between partners as to their own business

(ii) any agreement between an employer and those employed by him as to such
employment; or

(iv) any agreement in consideration of the sale of the goodwill of a business or of


instruction in any professions, trade or handicraft.
Authorities Empowered By This Act
Name of Authority Duties Powers
Central To determine the extent of the To register trade unions, to appoint registrars, to make
Government    act and to make rules to give regulations
effect to the Act
State Government To implement the provisions of To register trade unions, to appoint registrars, to make
the Act in the State regulations
Registrar of Trade Appointed by the appropriate To receive applications for registration, to call for
Union    government to carry out further particulars, and to accept or refuse registration
registration of trade unions

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