Final Notes 307-C Labour Law 1-08-2016

Private Circulation Only
KCES’s
Institute of Management & Research,Jalgaon
STUDY NOTES
MBA 307 C – Labour Laws
Compiled By
VIVEK VIKAS YAWALKAR

Assistant Professor
KCES’s Institute of Management and Research
Jalgaon
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North Maharashtra University, Jalgaon
(NACC Accredited ‘A’ Grade University)
FACULTY OF COMMERCE & MANAGEMENT
Syllabus: M.B.A.
SEMESTER: III
307C – Labour Laws
60 + 40 Pattern: External Marks 60 +Internal Marks 40 = Maximum Total Marks: 100
Required Lectures: 48 hours
1. Factories Act, 1948 (06)

1.1. Object & Definitions
1.2. Health Provisions
1.3. Safety Provisions
1.4. Welfare Provisions
1.5. Obligations of Worker & Occupier
1.6. Offences & Penalties
2. Minimum wages Act, 1948 (04)

2.1. Object, Applicability & definitions
2.2. Fixation of minimum rate of wages
2.3. Procedure for fixing and revising minimum wage,
3. Payment of wages Act, 1936 (04)
3.2. Time of payment of Wages.
3.3. Deductions from wages.
3.4. Obligations of Employers & Employees.
4. Payment of Bonus Act 1965 (06)
4.2. Calculation of Bonus,
4.3. Time limit for payment
4.4. Employees entitled to Bonus
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4.5. Payment of min/max Bonus
4.6. Calculation of allocable surplus,
4.7. Set-on and set-off of allocable surplus
5. Workmen’s Compensation Act, 1923. (04)
5.1. Object, Scope & definitions
5.2. Amount of Compensation
5.3. Obligations of Workmen & Employer
5.4. Distribution of Compensation
5.5. Occupational diseases
5.6. Penalties
6. Equal Remuneration act, 1976 (06)
6.1. Object & definitions
6.2. Duty of employer to pay equal remuneration to men and women workers for same
work of a similar nature
6.3. No discrimination to be made while recruiting man & women workers
6.4. Advisory committee
6.5. Authorities for hearing and deciding claims & Complaints
6.6. Duty of employers to maintain registers
6.7. Power of inspectors
7. Employees state insurance Act, 1948 (03)

7.1. Object, definitions
7.3. Contribution
7.4. Benefits to employees
8. The employee Provident fund & Miscellaneous provisions Act, 1952 (05)
8.2. Employees’ Provident Funds Scheme
8.3. Employees’ Family Pension Scheme,
8.4. Employees’ Deposit-linked Insurance Scheme,
8.5. Determination of moneys due from employers,
8.6. Special provisions relating to existing provident funds
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8.7. Transfer of accounts
8.8. Obligations & Rights of employer & employees.
9. Payment of Gratuity act, 1972 (05)
9.2. Payment of gratuity: Amount of Gratuity
9.3. Nominations
9.4. Compulsory Insurance
9.5. Forfeiture, exemption
9.6. Inspectors, Power of inspectors
10. Maternity Benefit Act, 1961 (05)
10.2. Right to payment of maternity benefit
10.3. Forfeiture of maternity benefit
10.4. Payment of maternity benefit in case of death of a woman
10.5. Payment of medical bonus
10.6. Leave for miscarriage
10.7. Leave for illness arising out of pregnancy, delivery, premature birth of child, or
miscarriage
10.8. Nursing breaks
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Unit 1- Factories Act, 1948
1.2. Health Provisions
1.3. Safety Provisions
1.4. Welfare Provisions
1.5. Obligations of Worker & Occupier
1.1. Object & Definitions:-
According to the Factories Act,1948, a 'factory' means "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 this does not include a mine subject to the operation of the Mines
Act, 1952 , or a mobile unit belonging to the armed forces of the union, a railway running
shed or a hotel, restaurant or eating place."
Manufacturing Process. This term is defined in Section 2(k) in a very wide sense. It
includes:
(i) making, altering, ornamenting, finishing, packing, oiling, washing, cleaning, breaking
up, demolishing, or otherwise treating or adopting 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 (Hi) generating,
transforming or transmitting power; or
(iii) (iv) composing types for printing, printing by letter press, lithography, photogravure
or other similar processes or book binding ; or
(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or

vessels; or
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(vi) Preserving or storing any article in cold storage.
Objectives:-
1.2 PROVISIONS REGARDING THE HEALTH OF WORKERS

Sections 11 to 20 of the Act contain certain provisions intended to ensure that the
conditions under .which work is carried on in factories do not affect the health of the
workers injuriously. The summary of the provisions are explained below:
Summary of the provisions of the Factories Act. Relating -to the health of workers are
stated below.
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1. Cleanliness. Every factory shall be kept clean and free from dirt, and the outflow of
drains etc. The floors must be cleaned. Drainage shall be provided. Inside walls, partitions
and ceilings must be repainted at least once in five years. When washable water paint is
used they must be painted once every three years and washed at least every period of six
months.-Sec. 11,' as amended in 1976.
2. Disposal of wastes and effluents. The waste materials produced from the
manufacturing process must be effectively disposed off-Sec. 12.
3. Ventilation 'and Temperature. There must be provision for adequate ventilation by the
circulation of fresh air: The temperature must be kept at a comfortable level. Hot parts of
machines must be Separated and insulated.-Sec. 13.
4. Dust and Fume. If the .manufacturing process used. Gives off injurious or offensive dust
and fume steps must be taken so that they are not inhaled or accumulated. The exhaust
fumes of internal combustion engines must be conducted outside the factory.--Sec. 14.
5. Artificial humidification. The water used for this purpose must be pure. It must be. Taken
from some source of drinking water supply. The State Government can frame rules .regarding
the process of humidification etc.-8ec. 15. .
6. OverCrowding. There must be no overcrowding in a factory. In factories existing
before the commencement of the Act there must be at least 350 c.ft. (~r 55 cubic metres) of
space per worker. For factories built afterwards, there must be at least 500 c.ft. (or 75 cubic
metres) of space. In calculating the space, an account is to be taken of space above 14 ft.
(or 5 metres) from the floor.-Sec. 16.
7. Lighting. Factories must be well lighted. Effective measures must be adopted to prevent
glare or formation of shadows which might cause eyestrain.-sec. 17.
8. Drinking water. Arrangements must be made to provide a sufficient supply of wholesome
drinking water. All supply' points of such water must be marked "drinking water". No such
points shall be within 20 ft. (or 7.5 metres) of any latrine, washing place etc. Factories
employing more than 250 workers must cool the water during the hot weather.-Sec. 18. .
9. Latrines and Urinals. Every factory must provide' sufficient number of latrines and
urinals. There must be separate provision for male and female workers. Latrine and urinals
must be kept in a clean and sanitary condition. In factories. Employing more than 250
workers, they shall be of prescribed sanitary types.--sec. 19.
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1.3 PROVISIONS REGARDING THE SAFETY OF WORKERS
Sections 21 to 40A, 40B and 41 of the Act lay down rules for the purpose of securing
the safety of workers. Summary of the provisions of the Factories Act regarding the safety of
the workers are stated below: (Sections 2l to 41) .
1. Fencing ot machinery. All dangerous machinery must be securely fenced e.g.,
moving .parts- of prime movers and flywheels connected to every prime mover. electric
generators. etc.-Sec. 2l.
2. Work on or near machinery in motion. Work on or near machinery in motion must
be carried out only by specially trained adult male workers wearing tightly fitting c1othes.-
Sec. 22.
3. Employment of young persons on dangerous machines. No young person shall
work at any danger ()us machine' unless he has been specially instructed as to the dangers
and the precautions to be observed. Has received sufficient training about the work. And is
under the supervision of some person having thorough knowledge and experience of the
machine.-Sec. 23.
4. Striking gear and devices for cutting off power.In every factory suitable devices
for cutting off power in emergencies from running machinery shall be provided and
maintained in every workroom. ~. 24.
5. Self-acting machines. Moving parts of a self-acting machine must not be allowed to
come within 45 cms. Of any fixed structure which is not part of the machine.-Sec. 25.
6. Casing of new machinery. In all machinery installed after the commencement of
the Act. Certain parts must be sunk, encased or otherwise effectively guarded e.g.. set
screw. bolt. toothed gearing etc. -sec. 26.
7. Women and children near cotton Openers. Women and children must not be
allowed to work near cot/On openers, except In certain cases.-Sec. 27
8. Hoists, lifts, chains etc, Every hoist and lift must be so constructed as to be safe. There
are detailed rules as to how such safety is to be secured. There are similar provisions
regarding lifting machines. chains, ropes and lifting tackle .Sec. 28. 29.
9. .Revolving machinery. Where grinding is . carried on the maximum safe working
speed of every revolving machinery connected therewith must be notified. Steps must be
taken to see that the safe speed is not exceeded.-Sec. 30.
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10. Pressure plant.Where any operation is carried on at a pressure higher than the
atmospheric pressure, steps must be taken to ensure that the safe working pressure is not
exceed~cL-.sec. 31.
. 11. Floors, stairs and means of access. All floors, steps, stairs, passage and gangways
shall be of sound construction and properly maintained. Handrails shall be provided where
necessary. Safe means of access shall be provided to the place where the worker will carry on
any work.-Sec. 32.
12. Pits, sumps. Openings in floors etc. Pits. Sumps. Openings in floors etc. must be
securely covered or fenced.-Sec. 33.
13. Excessive weights. No worker shall be made to carry a load so heavy as to cause
him injury.-8ec. 34.
14. Protection ofeyes. Effective screen or suitable goggles shall be provided to protect
the eyes of the worker from fragments thrown off in course of any manufacturing process and
from excessive light if any.-Sec. 35.
15. Precautions against dangerous fumes. No person shall be allowed to enter any
chamber. Tank etc. where dangerous fumes are likely to, be present. Unless it is equipped
with a manhole or other means of going out. In such space no portable electric light of more
than 24, volts shall be used. Only a lamp or light of flame proof construction can be used in
such space. For people entering such space suitable breathing apparatus, reviving apparatus
etc. shall be provided. Such places shall be cooled by ventilation before any person is allowed
to enter.-8ecs. 36 and 36A.
16. Explosive or inflammable gas etc. where a manufacturing process produces
inflammable gas. Dust. Fume. Etc. steps must be taken to enclose the machine concerned,
prevent the accumulation of substances and exclude all possible sources of ignition. Extra
precautionary measures are to be taken where such substances are worked at greater than the
atmospheric. Pressure.-Sec. 37.
17. Precaution in case of fire. Fire escapes shall be provided. Windows and doors
shall be constructed to open outwards. The means of exit in case of the fire shall be clearly
marked in red letters. Arrangements must be made to give warning in case or fire -sec. 38
18. Specifications of defectives etc. and safety of buildings and machinery. If any
building or machine is in a defective or dangerous condition, the inspector of factories can
ask fer the holding of tests to determine how they can be made safe. He can also direct the
adoption of the measure necessary to make them safe. In case of immediate danger, the use
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of the building or machine can be prohibited.-Secs. 39. 40.
19. Maintenance of Buildings.If the Inspector of Factories thinks that any building in a
factory, or any. part of it. is in such a state of disrepair that it is likely to affect the health and
welfare of the workers. he may serve on the occupier or manager or both in writing
specifying the measures to be done before the specified date. Sec. 4OA.
20. Safety Officers.The State Government may notify to the occupier to employ a
number of Safety Officers in a factory (i) wherein one thousand or more workers are
ordinarily employed. or (ii) wherein any manufacturing process or operation which involves
the risk of bodily injury, poisoning. Disease or any other hazard to health of the persons
employed in the factory.-Sec. 40B.
21. Rules.The State Government may make rules providing for the use of such further
devices for safety as may be necessary. Sec. 41.
1.4 PROVISIONS REGARDING THE WELFARE OF WORKERS

Summary of the provisions of the Factories Act regarding the welfare of workers are
stated below:
1. Washing. In every factory adequate and suitable facilities for washing shall be
provided and maintained. They shatI be conveniently accessible and shall be kept clean.
There must be separate provisions for male and female workers.-Sec. 42.
2. Storing and drying. The State Government may make rules requiring the provision
of suitable facilities for storing and drying clothing.-Sec. 43.
3. Sitting. Sitting facilities must be provided for workers who have to work in a standing
position. So that they may take rest when possible. When work can be done in a sitting
position efficiently the Chief Inspector may direct the provision of sitting arrangements. Sec.
44.
4. First aid.Every factory must provide first aid boxes or cupboard. They must contain
the prescribed materials and they must be in charge of persons trained in first aid treatment.
Factories employing more than 500 persons must maintain an ambulance roam containing
the prescribed equipment and in charge of the prescribed medical and nursing staff-Sec. 45.
5. Canteens.Where more than 250 workers are employed. The state Government may
require the opening of canteen or canteens for workers. Rules may be framed regarding the
food served. its management etc.,..-Sec. 46.
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6. Shelters. In every factory where more than 150 workers are employed there must be
provided adequate and suitable shelters or rest. rooms and a lunch room (with drinking
water supply) where workers may eat meals brought by them. Such rooms must be suffi-
ciently lighted and ventilated and must be maintained in a cool and clean condition~. The
standards may be fixed by the State Government. -Sec. 47,
7. Crèches.In every factory where more than 30 women a employed, a room shall be
provided for the use of the children (below 6 years) of such women. The room shall be
adequate size. well lighted and ventilated, maintained in a clean and sanitary condition and
shall be in charge of a woman trained in the care of children and infants. The standards shall
be laid down by the State Government. Sec. 48.
8. Welfare officers. Welfare officers must be appointed in every factory where 500 or
more workers are employed. The State Government may prescribe the duties, qualifications
etc. of such officers. Sec. 49.
1.5 OBLIGATIONS OF WORKERS
Section 111 lays down that no worker in a factory
(a) shall wilfully interfere with or misuse any appliance, convenience or other
things provided in a factory for the purpose of securing the health, safety or
welfare of the workers therein,
(b) shall wilfully and without reasonable cause do anything likely to
endanger himself or others; and
(c) shall wilfully neglect to make use of any appliance or other thing
provided in the factory for the purposes of securing the health or Safety of the
workers therein.
If any worker contravenes any of the previsions of this section or of any rule or order made
there under he shall be punishable with imprisonment which may extend to 3 months or with
fine which may extend to Rs. 100 or 'with both.
1.6 Penalties and Procedures.

Sections 92 to 1.06 lay down the rules regarding penalties for offences against the Act.
Owner: The owner of any premises, let out for use as different factories, is
responsible for the provision and maintenance of common facilities and 'Services,
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e.g., approach roads, drainage, water supply, latrines etc.
Occupier: In most cases the occupier of the factory is responsible for offences
committed against the Act. But the occupier is exempted from liability if he can
show that he has used due diligence to enforce the execution of the Act and that
some other person committed the offence without his knowledge, consent or
connivance.
Penalties: The penalties for some of the offences are mentioned below
Offences Imprisonment Fine

Obstructing Inspector Up to 3 months and/or Up to Rs 500/-
Wrongfully disclosing result
of analysis of sample --do
Contravention of any duty
or liability by a worker nil Rs 20/-
Using false certificate of
fitness Up to 1 month. Rs 50/-
Permitting double
em -ployment of child nil -do-
Cases not otherwise
provided for .. Up to 3 months " Rs. 2000
Second offence for above" 6 months ." " Rs. 5000
Penalties:
If the provisions of The Factories Act, 1948, or any rules made under the Act, or any order
given in writing under the Act is violated, it is treated as an offence. The following penalties
can be imposed:
(a) Imprisonment for a term which may extend to three months;
(b) Fine which may extend to one lace rupees; or
(c) Both fine and imprisonment.
If a worker misuses an appliance related to welfare, safety and health of workers, or in

relation to discharge of his duties, he can be imposed a penalty of Rs. 500/-
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Unit 2- Minimum wages Act, 1948

2.2. Fixation of minimum rate of wages
2.3. Procedure for fixing and revising minimum wage,
2.1. Object, Applicability & definitions:-
(a)Minimum Wage
The Act under section 2(h) defines wages, but does not define “minimum wages”. As it is not
possible to bring down a uniform minimum wage for all the industries throughout the
country.
Section 2(h)"wages" means 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 person fund or provident fund or under any
scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or
(v) any gratuity payable on discharge;
Essential Ingredient
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1. Wage should be by way of remuneration
2. It should be capable of being expressed in terms of money.
3. It should be payable to a person employed in respect of his employment or of work done

in such employment.
4. It should be payable to a workmen.
5. It should be payable if the terms of employment, express or implied, are fulfilled.
6. It includes house rent allowance.
7. It does not include house accommodation, supply of light, water, medical attendance,
traveling allowance, contribution of employer towards provident fund, gratuity , any
scheme of social insurance etc.
Classification of Wages
The Supreme Court has classified “Wages” into three categories. They are:
1. The Living Wage ( highest standard of wage)
2. The Fair Wage (between living and minimum wage)
3. The Minimum Wage.( it is the lowest standard of wage)
The living and fair wages are acquired by workers with their “collective bargaining”. When
the workers have no unions and who have no capacity of collective bargain could not demand
the employers for their just and genuine wage. The State come to rescue them through such
legislations.
The main objective of this Act, is fixing a minimum rate of wages in number of industries
where the labours are not organized and sweated labours are most dominant. The Act aims at
preventing the exploitation of workers or labours in some industries, for which, the
appropriate Government is empowered to take steps to prescribe minimum rates of wages in
certain employment.
The Minimum Wages Fixing Machinery convention was held at Geneva in the year 1928 by
ILO with reference to remuneration of workers in those industries where the, level of wages
was substantially low and the labour was vulnerable to exploitation, being not well organised
and having less effective bargaining power.
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This Act may be called the Minimum Wages Act 1948.The Act enables the Central and State
Government to fix minimum rates of wages payable to employees in selected number of
’sweated’ industries. The Act extends to the whole of India.
Following are some of the definitions and sections under the Act:
1. Adolescent [2. (a)]: “adolescent" means a person who has completed his fourteenth year
of age but has not completed his eighteenth year.
2. Adult [2. (aa)]: "adult" means a person who has completed his eighteenth year of age.
3. Appropriate government [2. (b)]: "appropriate government" means:
(i) in relation to any scheduled employment carried on by or under the authority of the
Central Government or a railway administration] or in relation to a mine oil field or major
port or any corporation established by a Central Act the Central Government and
(ii) in relation to any other scheduled employment the State Government; .
4. Child [2. (bb)]: "child" means a person who has not completed his fourteenth year of age.
5. Competent authority [2. (c)]: "competent authority" means the authority appointed by the
appropriate government by notification in its Official 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.
6. Cost of living index number [2. (d)]: "cost of living index number" in relation to
employees in any scheduled employment in respect of which minimum rates of wages
have been fixed means the index number ascertained and declared by the competent
authority by notification in the Official Gazette to be the cost of living index number
applicable to employee in such employment.
7. Employer [2. (e)]: "employer" means 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
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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 under 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 any local authority in respect of which minimum
rates of wages have been fixed under this Act the persons 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;
2.2. Fixation of minimum rate of wages: -(sec 3 to Sec 5)

The Appropriate Government:
 Shall fix minimum rates of wages for an employment specified in Part I or Part II
of Schedule &addedby notification in official gazette
 May fix rates for a part of the state or for any specific class or classes instead of
fixing minimum rate of wages for whole state
 Shall review and revise at intervals not exceeding 5 years the minimum rates of
wages
Different Minimum Wages May Be Fixed By The Government For:
 Different employments (specified in the schedule)
 Different classes (e.g. skilled, unskilled, semis skilled, etc.) of work in the same
employments
 Adults, adolescents, children and apprentices
 Different localities
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Segregation:
Minimum rates of wages may be fixed by any one or more of the following wage periods,
namely:
 By the hour
 By the day
 By the month
 By such other larger wage period
as may be prescribed; and where such rates are fixed by the day or by the month, the manner
of calculating wages for a month or for a day, as the case may be, may be indicated.
Different Minimum Wages May Be Fixed by the Government May consist of [Sec. 4]
1. Basic + Special Allowance (Which varies with the cost of living index)
2. Basic + Cash value of concessional supply of materials like food, clothes, etc
3. Anall-inclusive rate which includes Basic + Cost of living Allowance + Cash value
of concessional supply of materials
2.3. Procedure for fixing and revising minimum wage:
Procedure for fixing and revising minimum wages.

5. (1) In fixing minimum rates of wages in respect of any scheduled employment for the first
time under this Act or in revising minimum rates of wage so fixed, the appropriate
Government shall either—
(a) appoint as many committees and sub-committees as it considers necessary to hold
enquiries and advise it in respect of such fixation or revision, as the case may be, or
(b) by notification in the Official Gazette, publish its proposals for the information of
persons likely to be affected thereby and specify a date, not less than two months from
the date of the notification, on which the proposals will be taken into consideration.
(2) After considering the advice of the committee or committees appointed under clause (a)
of sub-section (1), or as the case may be, all representations received by it before the date
specified in the notification under clause (b) of that sub-section, the appropriate Government
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shall, by notification in the Official Gazette, fix, or, as the case may be, revise the minimum
rates of wages in respect of each schedule employment, and unless such notification other-
wise provides, it shall come into force on the expiry of three months from the date of its
issue:
Provided that where the appropriate Government proposes to revise the minimum rates of
wages by the mode specified in clause (b) of sub-section (1), the appropriate Government
shall consult the Advisory Board also.
2.4. Offences & Penalties:

Penalties [Sec. 22]
Offence Punishment
Payment of less than Minimum Wages to Imprisonment which may extend up to 6
employee Months or Fine which may extend up to Rs
500/- or Both
State Amendments:-
Bihar In section 22, for the words six months, substitute the words one yearand for the
words five hundred rupees, substitute the words three thousand rupees. [ Vide Bihar Act
5 of 1983, sec. 6 (w.e.f. 30-1-1983 ).]
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Maharashtra In section 22, in clause (a), after the words provisions of this Act'', add
the words or fails to pay the wages within the time prescribed under sub-section (1) of
section 12. [ Vide Maharashtra Act 3 of 1963, sec. 7 (w.e.f. 14-1-1963 ).] Section 22A
Maharashtra After section 22, add the following new section, namely22A.
Penalty for obstructing Inspector. Whoever wilfully obstructs an Inspector in the
exercise of any power conferred on him by or under this Act, or fails to produce on
demand by an Inspector any registers, records or other documents in his custody kept in
pursuance of this Act, and which he is required to produce by or under this Act shall, on
conviction, be punished with fine which may extend to five hundred rupees.'' [ Vide
Maharashtra Act 3 of 1963, sec. 8 (w.e.f. 14-1-1963 ).]
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Unit 3- Payment of wages Act, 1936

3.3. Deductions from wages.
3.4. Obligations of Employers & Employees
Introduction:-
With the growth of industries in India, problems relating to payment of wages to persons
employed in industry took an ugly turn. The industrial units were riot making payment of
wages to their workers at regular intervals and wages were not uniform. The industrial
workers were forced to raise their heads against their exploitation. In 1926, Government of
India wrote to local governments to ascertain the position with regard to the delays which
occurred in the payment of wages to the persons employed in Industry. Material so collected
was placed before the Royal Commission on Labour which was appointed in 1929. On the
report of the Commission, Government of India re-examined the subject and in February,
1933 the Payment of Wages Bill, 1933, was introduced in the Legislative Assembly and
circulated for the purpose of-eliciting opinions. A motion for the reference of the Bill to a
Select Committee was tabled but the motion could not be passed and the Bill lapsed. In 1935
the Payment of Wages Bill, based upon the same principles as the earlier Bill of 1933 but
thoroughly revised was introduced in the Legislative Assembly on 15th February, 1935. The
Bill was referred to the Select Committee. The Select Committee presented its report on 2nd
September, 1935. Incorporating the recommendations of the Select Committee, the Payment
of Wages Bill, 1935 was again introduced in the Legislative Assembly
Definition: -In this Act, unless there is anything repugnant in the subject or context.—
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(i)“appropriate Government” means, in relation to railways, air transport services, mines
and oilfields, the Central Government and, in relation to all other cases, the State
Government;]
(ia) “Employed person” includes the legal representative of a deceased employed person;
(ib) “employer” includes the legal representative of a deceased employer;
“factory” means 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;]
Industrial or other establishment” means] any—
(a) tramway service, or motor transport 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 oil-field; (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 establishments which 8 [the appropriate 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;

(1) The wages of every person employed upon or in—
 In railway factory or industrial or other establishment, if there are less than 1000
employees, wages of employees should be paid before the expiry of the 7th day after
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the last day of the wage period. (ex:- wages should be paid on starting of present
month within 7 days i.e. before 7th date if wage is paid on 1st in previous month )
 In other railway factory or industrial or other establishment, if there are more than
1000 employees, wages of employees should be paid before the expiry of the 10th
day after the last day of the wage period. (ex:- wages should be paid on starting of
present month within 10 days i.e. before 10th date if wage is paid on 1st in previous
month )
 For employees of port area, mines, wharf or jetty, wages of employees should be paid
before the expiry of the 7h day after the last day of the wage period.
 [Sec 5 (2)]
If the employee is terminated or removed for the employment by the employer the
wage of that employee should be paid within 2 days from the day on which he was
removed or terminated.
Illustration: if the employee was terminated or removed from the employment by

the employer on 10th of this month, his wage should be paid within 2 days from the
day on which he was removed or terminated, i.e. his/her wage should be paid by 12th
date of this month and this date should not exceed.
 [Sec 5 (4)]
Except the payment of wage of the terminated employee, all the wages of the
employees should be paid by their employer on the working day only.
3.3 Deductions from wages:-

At the time of payment of the wage to employees, employer should make deductions
according to this act only. Employer should not make deductions as he like. Every
amount paid by the employee to his employer is called as deductions.
The following are not called as the deduction
 Stoppage of the increment of employee.

 Stoppage of the promotion of the employee.
 Stoppage of the incentive lack of performance by employee.
 Demotion of the employee
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 Suspension of the employee
The above said actions taken by the employer should have good and sufficient cause.
Deductions [Sec 7 (2)]

Deduction made by the employer should be made in accordance with this act only. The
following are said to be the deductions and which are acceptable according to this act.
 Fines,
 Deductions for absence from duty,
 Deductions for damage to or loss of goods made by the employee due to his
negligence,
 Deductions for house-accommodation supplied by the employer or by government or
any housing board,
 Deductions for such amenities and services supplied by the employer as the State
Government or any officer,
 Deductions for recovery of advances connected with the excess payments or advance
payments of wages,
 Deductions for recovery of loans made from welfare labour fund,
 Deductions for recovery of loans granted for house-building or other purposes,
 Deductions of income-tax payable by the employed person,
 Deductions by order of a court,
 Deduction for payment of provident fund,
 Deductions for payments to co-operative societies approved by the State
Government,
 Deductions for payments to a scheme of insurance maintained by the Indian Post
Office
 Deductions made if any payment of any premium on his life insurance policy to the
Life Insurance Corporation with the acceptance of employee,
 Deduction made if any contribution made as fund to trade union with the acceptance
of employee,
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 Deductions, for payment of insurance premia on Fidelity Guarantee Bonds with the
acceptance of employee,
 Deductions for recovery of losses sustained by a railway administration on account of
acceptance by the employee of fake currency,
 Deductions for recovery of losses sustained by a railway administration on account of
failure by the employee in collections of fares and charges,
 Deduction made if any contribution to the Prime Minister’s National Relief Fund with
the acceptance of employee,
 Deductions for contributions to any insurance scheme framed by the Central
Government for the benefit of its employees with the acceptance of employee,
Limit for deductions [Sec 7 (3)]
The total amount of deductions from wages of employees should not exceed 50%, but only in
case of payments to co-operative societies, deduction from wages of employee can be made
up to 75%.
DEDUCTIONS FOR ABSENCE FROM DUTY. [Sec 9]
 Deductions can be made by the employer for the absence of duty by the employee for
one day or for any period.
 The amount deducted for absence from the duty should not exceed a sum which bears
the same relationship to the wage payable in respect of the wage-period as this period
of absence does to such wage-period. (Example: if the salary of an employee is 6000/-
per month and he was absent for duty for one month. Deduction from the salary for
absence of duty should not exceed 6000/-)
 Employee present for the work place and refuses to work without proper reason shall
be deemed to be absent from duty.
 If 10 or more persons together absent for the duty without any notice and without
reasonable cause, employer can make 8 day of wages as deduction from their wage.
DEDUCTIONS FOR DAMAGE OR LOSS. [Sec 10]
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Employer should give an opportunity to the employee to explain the reason and cause for the
damage or loss happened and deductions made by employer from the employee wage should
not exceed the value or amount of damage or loss made by the employee.
[Sec 10 (2)] All such deduction and all realizations thereof shall be recorded in a register to
be kept by the person responsible for the payment of wages under section 3 in such form as
may be prescribed.
3.4 Obligations of Employers & Employees:-
What is the responsibility of the employer towards payment of wages to employee?
Every employer shall be responsible for the payment of all wages required to be paid under
the Payment of Wages Act, 1936 to persons employed by him and in case of persons
employed-
 In the case of contractor, a person designated by such contractor who is directly under
his charge;
 A person designated by the employer as a person responsible for complying with the
provisions of the Act
 Every employer shall maintain such registers and records giving such particulars of
persons employed by him, the work performed by them, the wages paid to them, the
deductions made from their wages, the receipts given by them and such other
particulars and in such form as may be prescribed.
 Every register and record required to be maintained under this section shall, for
the purposes of this Act, be preserved for a period of three years after the date of
the last entry made therein.
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Unit 4- Payment of Bonus Act 1965

4.2. Calculation of Bonus,
4.3. Time limit for payment
4.4. Employees entitled to Bonus
4.5. Payment of min/max Bonus
4.6. Calculation of allocable surplus,
4.7. Set-on and set-off of allocable surplus
The Act provides a statutory right to employees of an establishment to share the profits of
his/her employer. As per the Principal Act, any employee who was drawing a salary or wage
not exceeding ten thousand rupees per month was eligible to be paid a bonus.
Section 2 (13) of the Principal Act states that, "employee" means any person (other than an
apprentice) employed on a salary or wage not exceeding ten thousand rupees per
mensem in any industry to do any skilled or unskilled manual, supervisory, managerial,
administrative, technical or clerical work for hire or reward, whether the terms of
employment be express or implied.
As per Section 12 of the Principal Act which lays down the 'Calculation of bonus with
respect to certain employees'- Where the salary or wage of an employee exceeds three
thousand and five hundred rupeesper mensem, the bonus payable to such employee under
section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage
were three thousand and five hundred rupees per mensem.
For the purposes of calculation of the bonus to be paid to an employee under the Principal
Act, INR 3,500 (Indian Rupees Three Thousand Five Hundred) per month was the maximum
amount taken even if an employee was drawing up to INR 10,000 (Indian Rupees Ten
Thousand Only) per month
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Applicability:-
4.2. Calculation of Bonus:-

Calculation of bonus with respect to certain employees. [Sec 12] (2015 amendment)
Where the salary or wage of an employee exceeds Rs.7,000/- per mensem(by the month), the
bonus payable to such employee under Sec.10, or as the case may be, under Sec.11, shall be
calculated as if his salary or wage were Rs.7,000/- per mensem.
The Government has decided to enhance the eligibility limit for payment of bonus 3500/- per
month.
Computation of gross profits [Sec 4].
There few differences in computation of gross profits in case of banking company and other
than banking companies. For accurate computation of the gross profits in case of banking
companies refer to First schedule and for other companies but not banking companies refer to
Second schedule. But over view for computation of gross profits is mentioned below
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Net profit (P&L a/c) +Add following items
 Income tax
 provision for: Bonus to employees, Depreciation, Direct taxes,
 Bonus paid to employees in respect of previous accounting years
 The amount, if any, paid to, or provided for payment to, an approved gratuity fund
 The amount actually paid to employees on their retirement or on termination of their
employment for any reason
 Donations
 annuity due
 Capital expenditure (other than capital expenditure on scientific research
 capital losses
 Capital losses (other than losses on sale) of Capital assets on which depreciation has
been allowed for income-tax or agricultural income-tax).
 Losses of, or expenditure relating to, any business situated outside India.
4.3. Time limit for payment:-

Time limit for payment. [Sec 19]
 Bonus should be paid within a period of 8 months from the close of the accounting
year.
 Maximum extended period for payment of bonus is 2 years, but with the permission
of the government only
Recovery of bonus due from an employer [Sec 21]
 If any amount is due to employee as bonus from his employer, he can write and apply
to the government for the recovery of the bonus from the employer.
 application shall be made within one year from the date on which the money became
due to the employee from the employer
4.4. Employees entitled to Bonus:-
 Every employee shall be entitled to be paid by his employer in an accounting year,

bonus, in accordance with the provisions of this Act, provided he has worked in the
establishment for not less than thirty working days in that year.
4.5. Payment of min/max Bonus:-
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4.6. Calculation of allocable surplus:-
In Relation to an employer being a company (other than a banking company)which has not
made the arrangement prescribed under the income tax act for the declaration and payment
within India of the dividend payable out of its profit in accordance with the provision Section
194 of the act 67% of the available surplus in an accounting year. In other cases 60%of such
available surplus.
4.7 Set-On and Set-Off Of Allocable Surplus [Sec 15]
Set-On (In case of huge profits,)
Excess allocable surplus remain after paying the maximum bonus of 20% on the wage or
salary of the employee, Should be carried forward to the next following year to be utilized for
the purpose of payment of bonus in case of the shortage of the allocable surplus or losses
occur. This is called as Set-On
Set-Off (in case of losses occur)
When there are no profits (available surplus or allocable surplus) or the amount falls short or
deficiency for payment of minimum bonus to employees 8.33%, such deficiency amount
should be adjusted to the current accounting year from the Set-On amount which was carried
forward in case of excess allocable surplus in the previous year. This is called as Set-Off.
Illustration:
 In this Schedule, the total amount of bonus equal to 8.33 per cent of the annual salary
or wage payable to all the employees is assumed to be Rs.1,04,167. Accordingly,
 Maximum bonus to which all the employees are entitled to be paid (20% of the annual
salary or wage of all the employees) would be Rs. 2,50,000.
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Unit 5- Workmen’s Compensation Act, 1923
5.1. Object, Scope & definitions

5.2. Amount of Compensation
5.5. Occupational diseases
5.6. Penalties
5.1. Object, Scope & definitions:-
1. Short Title, Extent and Commencement. –
(1) This Act may be called the Workmen's Compensation Act, 1923.
(2) It extends to the whole of India.
(3) It shall come into force on the first day of July, 1924.
2. DEFINITIONS. –
(1) In this Act, unless there is anything repugnant in the subject or context, - (a) Omitted
(b) "Commissioner" means a Commissioner for Workmen's Compensation appointed under

section 20;
(c) "Compensation" means compensation as provided for by this Act;
(d) "Dependent" means any of the following relatives of a deceased workman, namely :- (i) a
widow, a minor legitimate or adopted son, and unmarried legitimate or adopted daughter, or a
widowed mother; and
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(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;
(e) "employer" includes anybody 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;
(f) "Seaman" means any person forming part of the crew of any ship, but does not include
the master of the ship;
(g) "total disablement" means such disablement, whether of a temporary or permanent nature,
as incapacitates a workman for all work which he was capable of performing at the time of
the accident resulting in such disablement :
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;
(h) "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 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;
(i) "workman" means 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
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5.2. Amount of Compensation:-
(1) Subject to the provisions of this Act, the amount of compensation shall be as follows,
namely :- (a) where death results an amount equal to fifty from the injury cent of the monthly
wages of the deceased workman multiplied by the relevant factor; or an amount of fifty
thousand rupees, whichever is more;
(b) Where permanent total an amount equal to disablement results from sixty the injury per
cent of the monthly wages of the injured workman multiplied by the relevant factor, or an
amount of sixty thousand rupees, whichever is more.
(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
(d) Where temporary a half monthly payment of the sum disablement, whether equivalent to
twenty-five per cent of total or partial, results monthly wages of the workman, to from the
injury be paid in accordance with the provisions of sub-section (2).

1) Power of Commissioner to require from employers statements regarding fatal
accidents
2) To submit reports of fatal accidents and serious bodily injuries.
1) No payment of compensation in respect of a workman whose injury has resulted in death,

and no payment of a lump sum as compensation to a woman or a person under a legal
disability, shall be made otherwise than by deposit with the Commissioner, and no such
payment made directly by an employer shall be deemed to be a payment of compensation:
1a) Provided that, in the case of a deceased workman, an employer may make to any
dependent advances on account of compensation of an amount equal to three months' wages
of such workman and so much of such amount as does not exceed the compensation payable
to that dependent shall be deducted by the Commissioner from such compensation and repaid
to the employer.
(2) Any other sum amounting to not less than ten rupees which is payable as compensation
may be deposited with the Commissioner on behalf of the person entitled thereto.
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(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any
compensation deposited with him.
(4) On the deposit of any money under sub-section (1), as compensation in respect of a
deceased workman the Commissioner shall, if he thinks necessary, cause notice to be
published or to be served on each dependent in such manner as he thinks fit, calling upon the
dependents to appear before him on such date as he may fix for determining the distribution
of the compensation.
If the Commissioner is satisfied after any inquiry which he may deem necessary, that no
dependent exists, he shall repay the balance of the money to the employer by whom it was
paid.
The Commissioner shall, on application by the employer, furnish a statement showing in

detail all disbursements made.
(5) Compensation deposited in respect of a deceased workman shall, subject to any deduction
made under sub-section (4), be apportioned among the dependents of the deceased workman
or any of them in such proportion as the Commissioner thinks fit, or May, in the discretion of
the Commissioner, be allotted to any one dependent.
(6) Where any compensation deposited with the Commissioner is payable to any person, the
Commissioner shall, if the person to whom the compensation is payable is not a woman or a
person under a legal disability, and May, in other cases, pay the money to the person entitled
thereto.
5.5. Occupational diseases:-

5.6. Penalties:-
Section 18 A of the Act prescribes penalties for the contravention of the provision of the act
which include fine up to Rs.5000.
The following omission attracts this punishment under the act:
Whosoever fails to maintain a notice book which he is required to maintain under section
10(3),or
Whosoever fails to send to the commissioner a statement of fatal accidents which he required
to send under section 10A(1),or
Whosoever fails to send a report of fatal accidents and serious bodily injuries which he is
required to send under section 10B,or
Whosoever fails to make a return of injuries and compensation which he is required to make
under section 16.
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UNIT 6. Equal Remuneration act, 1976
6.2. Duty of employer to pay equal remuneration to men and women workers for same
work of a similar nature
6.6. Duty of employers to maintain registers
6.7. Power of inspectors
(a) “Appropriate Government” means. -
(i) In relation to any employment carried on by or under the authority of the Central
Government or a railway administration, or in relation to a banking company, a mine, oilfield
or major port or any corporation established by or under a Central Act, the Central
Government; and
(ii) In relation to any other employment, the State Government;
(b) “Commencement of this Act” means, in relation to an establishment or employment,

the date on which this Act comes into force in respect of that establishment or employment;
(c) “Employer” has the meaning assigned to in Cl. (f) for Sec. 2 of the Payment of
Gratuity Act, 1972 (39 of 1972);
(d) “Man” and “woman” mean male and female human beings, respectively, of any age;
(e) “Notification” means a notification published in the official Gazette;
(f) “Prescribed” means prescribed by rules made under this Act;
(g) “Remuneration” means the basic wage or salary, and any additional emoluments
whatsoever payable, either in cash or in kind to a person employed in respect of employment
or work done in such employment, if the terms of the contract of employment, express or
implied, were fulfilled;
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(h) “Same work or work of a similar nature” means work in respect of which the skill,
effort and responsibility required are the same, when performed under similar working
conditions, by a man or a woman and the differences, if any, between the skill, effort and
responsibility required of a man and those required of a woman are not of practical
importance in relation to the terms and conditions of employment
(i) “Worker” means a worker in any establishment or employment in respect of which

this Act has come into force;
(j) Words and expressions used in this Act and not defined but defined in the Industrial
Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in
that
6.2. Duty of employer to pay equal remuneration to men and women workers for
same work of a similar nature:-
(1) No employer shall pay to any worker, employed by him in an establishment or

employment, remuneration, whether payable in cash or in kind, at rates less favourable than
those at which remuneration is paid by him to the workers of the opposite sex in such
establishment or employment for performing the same work of a similar nature.
(2) No employer shall, for the purpose of complying with the provisions of sub-section
(1), reduce the rate of remuneration of any worker.
(3) Where, in an establishment or employment, the rates of remuneration payable before

the commencement of this Act for men and women workers for the same work of a similar
nature are different only on the ground of sex, then the higher (in case where there are only
two rates), or as the case may be, the highest (in cases where there are more than two rates),
or such rates shall be the rate at which remuneration shall be payable, on and from such
commencement, to such men and women workers:
Provided that nothing in this sub-section shall be deemed to entitle a worker to the revision of
the rate of remuneration payable to him or her with reference to the service rendered by him
or her before the commencement or this Act.
On and from the commencement of this Act, no employer shall while making recruitment for
the same work or work of a similar nature 1[or any condition of service subsequent to
recruitment, such as, promotions, training or transfer,] make any discrimination against
women except where the employment of women in such work is prohibited or restricted by or
under any law for the time being in force :
Provided that the provisions of this section shall not affect any priority or reservation for
Scheduled Castes or Scheduled Tribes, ex-servicemen, retrenched employees or any other
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class or category of persons in the matter of recruitment to the posts in an establishment or
employment.
1) For the purpose of providing increasing employment opportunities for women, the
appropriate Government shall constitute one or more Advisory Committee to advise it with
regard to the extent to which women may be employed in such establishments or employment
as the Central Government may, by notification, specify in this behalf.
(2) Every Advisory Committee shall consist of not less than ten persons, to be nominated
by the appropriate Government, of which one-half shall be women.
(3) In tendering its advice, the Advisory Committee shall have regard to the number of
women employed in the concerned establishment or employment, the nature of work, hours
of work, suitability of women for employment, as the case may be, the need for providing
and increasing employment opportunities for women, including part-time employment and
such other relevant factors as the Committee may think fit.
(4) The Advisory Committee shall regulate its own procedure.
(5) The appropriate Government may, after considering the advice tendered to it by the
Advisory Committee and after giving to the persons concerned in the establishment or
employment an opportunity to make representations, issue such directions in respect of
employment of women workers, as the appropriate Government may think fit.
1. The appropriate Government may, by notification, appoint such officers, not below the
rank of a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and
deciding
(a) Complaints with regard to the contravention of any provision of this Act;
(b) Claims arising out of non-payment of wages at equal rates to men and women workers
for the same work or work of a similar nature, and may, by the same or subsequent
notification, define the local limits within which each such authority shall exercise its
jurisdiction
6.6. Duty of employers to maintain registers:- (Sec 8)
Every employer is required to maintain prescribed registers and documents in relation to

workers employed by him
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6.7. Power of inspectors:-
(1) The appropriate Government may, by notification, appoint such persons as it may
think fit to be Inspectors for the purpose of making an investigation as to whether the
provisions of this Act, or the rules made thereunder, are being complied with by employers,
and may define the local limits within which an Inspector may make such investigation.
(2) Every Inspector shall be deemed to be a public servant within the meaning of Sec. 21
of the Indian Penal Code (45 of 1860).
(3) An Inspector may, at any place within the local limits of his jurisdiction, -
(a) Enter, at any reasonable time, with such assistance as he thinks fit, any building,
factory, premises or vessel;
(b) Require any employer to produce any register, muster-roll or other documents
relating to the employment of workers, and examine such documents;
(c) Take, on the spot or otherwise, the evidence of any person for the purpose of
ascertaining whether the provisions of this Act are being, or have been,
complied with;
(d) Examine the employer, his agent or servant or any other person found in charge
of the establishment or any premises connected therewith or any person whom
the Inspector has reasonable cause to believe to be, or to have been a worker in
the establishment;
(e) Make copies, or take extracts from, any register or other document maintained
in relation to the establishment under this Act.
(4) Any person required by an inspector to produce any register or other document or to
give any information shall comply with such requisition.
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UNIT 7- Employees state insurance Act, 1948
7.3. Contribution
In this Act, unless there is anything repugnant in the subject or context, - (1) "appropriate
Government" means, in respect of establishment under the control of the Central Government
or a railway administration or a major port or a mine oilfield, the Central Government, and in
all other cases, the State Government;
(2) Omitted
(3) "confinement" means labour resulting in the issue of a living child, or labour after twenty
six weeks of pregnancy resulting in the issue of a child whether alive or dead;
(4) "contribution" means the sum of money payable to the Corporation by the principal
employer in respect of an employee and includes any amount payable by or on behalf of the
employee in accordance with the provisions of this Act;
(5) Omitted
(6) "Corporation" means the Employees State Insurance Corporation set up under this Act;
(6A) "dependant" means any of the following relatives of a deceased insured person,
namely :- (i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted
daughter;
(ia) a widowed mother;
(ii) if wholly dependent on the earnings of the insured person at the time of his death, a
legitimate or adopted son or daughter who has attained the age of eighteen years and is
infirm;
(iii) if wholly or in part dependent on the earnings of the insured person at the time of his
death, - (a) a parent other than a widowed mother,
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(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or
adopted or illegitimate if married and a minor or if widowed and a minor,
(c) a minor brother or an unmarried sister or a widowed sister if a minor,
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre-deceased daughter where no parent of the child is alive, or
(g) a paternal grand-parent if no parent of the insured person is alive;
(7) "duly appointed" means appointed in accordance with the provisions of this Act or with
the rules or regulations made thereunder;
(8) "employment injury" means a personal injury to an employee caused by accident or an

occupational disease arising out of and in the course of his employment, being an insurable
employment, whether the accident occurs or the occupational disease is contracted within or
outside the territorial limits of India;
(9) "employee" means any person employed for wages in or in connection with the work of a
factory or establishment to which this Act applies and –
(i) who is directly employed by the principal employer on any work of, or incidental or
preliminary to or connected with the work of, the factory or establishment, whether such
work is done by the employee in the factory or establishment or elsewhere; or
(ii) who is employed by or through an immediate employer on the premises of the factory or
establishment or under the supervision of the principal employer or his agent on work which
is ordinarily part of the work of the factory or establishment or which is preliminary to the
work carried on in or incidental to the purpose of the factory or establishment; or
(13A) "insurable employment" means an employment in a factory or establishment to which

this Act applies;
(14) "Insured person" means a person who is or was an employee in respect of whom
contributions are or were payable under this Act and who is, by reason thereof, entitled to any
of the benefits provided by this Act;
(14A) "managing agent" means any person appointed or acting as the representative of
another person for the purpose of carrying on such other person's trade or business, but does
not include an individual manager subordinate to an employer;
(14AA) "manufacturing process" shall have the meaning assigned to it in the Factories Act,
1948 (63 of 1948);
(14B) "mis-carriage" means expulsion of the contents of a pregnant uterus at any period prior
to or during the twenty-sixth week of pregnancy but does not include any mis-carriage, the
causing of which is punishable under the Indian Penal Code (45 of 1860);
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(15) "Occupier" of the factory shall have the meaning assigned to it in the Factories Act,
1948 (63 of 1948);
(15A) "permanent partial disablement" means such disablement of a permanent nature, as

reduces the earning capacity of an employee in every employment which he was capable of
undertaking at the time of the accident resulting in the disablement: Provided that every
injury specified in Part II of the Second Schedule shall be deemed to result in permanent
partial disablement.
7.2. Obligations of Employers& Employees:-
Obligation of the Employers …
1). Get your Factory / establishment registered with in 15 days after the Act becomes
applicable. Submit Form 01 to the Regional office for this purpose. Obtain Employer’s code
No. for use in all ESIC Forms / documents and correspondence with the offices of the ESI
Corporation.
2). Fill up Declaration Forms in respect of all coverable employees and submit the same to
the Regional Office/ Local Office of the corporation well before the ‘Appointed Day’ and
obtain insurance Numbers from the concerned Local Office/ Regional Office, In respect of
newly appointed employees, fill up the declaration form soon after appointment of such
employees and submit the same to the Local Office Concerned.
3). Pending receipt of identity cards/ identity certificates you may issue “certificate of
employment” in Form 86 to the covered employee(s) enabling them to avail cash/medical
Benefits
4). Pay ESI contribution (Employee's Share @4.75% and the Employer’s share @ 1.75% of
the wages) with in 21 days of the month following, in which the wages fall due.
5).Maintain an Accident Book as prescribed under the Factory Act / ESI Act.
6).Submit an Accident Report to the Local Office / ESI Dispensary concerned immediately in
respect of accidents that could result in death or disablement and within 24 hours of its
occurrence otherwise. Minor accidents which do not cause absence from work need not be
reported
7).Grant leave to insured employees on the basis of sickness certificates issued by any
authorized ESI doctor.
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Maintain the following records/ registers properly for the purpose of inspection
1. Attendance Registers / Muster Rolls (in respect of all employees including those
employed through contractors)
2. Wage register
3. Cash Book / Bank Book
4. Account Books including Ledgers and Vouchers, Balance Sheet.
5. Employees’ Register
6. Accident Book
7. Returns of Contribution
8. Return of Declaration Forms
9. Copies of Challans
10. Inspection Book
7.3. Contribution:-
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(1) The contribution payable under this Act in respect of an employee shall comprise
contribution payable by the employer (hereinafter referred to as the employer's contribution)
and contribution payable by the employee (hereinafter referred to as the employee's
contribution) and shall be paid to the Corporation.
(2) The contributions shall be paid at such rates as may be prescribed by the Central
Government:
Provided that the rates so prescribed shall not be more than the rates which were in force
immediately before the commencement of the Employees' State Insurance (Amendment) Act,
1989.
(3) The wage period in relation to an employee shall be the unit in respect of which all
contributions shall be payable under this Act.
(4) The contributions payable in respect of each wage period shall ordinarily fall due on the
last day of the wage period, and where an employee is employed for part of the wage period,
or is employed under two or more employers during the same wage period, the contributions
shall fall due on such days as may be specified in the regulations.
(5) (a) If any contribution payable under this Act is not paid by the principal employer on the
date on which such contribution has become due, he shall be liable to pay simple interest at
the rate of twelve per cent per annum or at such higher rate as may be specified in the
regulations till the date of its actual payment:
Provided that higher interest specified in the regulations shall not exceed the lending rate of
interest charged by any scheduled bank.
(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue
or under section 45C to section 45-I.
Explanation : In this sub-section, "scheduled bank" means a bank for the time being included
in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
SICKNESS AND EXTENDED SICKNESS BENEFIT
 Represents periodical payments made to an insured person for the period of certified
sickness after completing 9 months in insurable employment.
 To qualify, contributions should be for minimum 78 days in the relevant period.
 Maximum duration for benefit is 91 days.
 Rates of payment vary from rs.14-125 per day, i.E. Average of 50% of daily wages.
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 Insured persons suffering from tb, leprosy, mental and malignant diseases or other
specified long term diseases are entitled to extended benefits at higher rates, provided
he has been continually employed for at least two years..
MATERNITY BENEFIT
 Implies cash payment to an insured woman in case of confinement or miscarriage or

sickness arising out of pregnancy or premature birth.
 Woman should have contributed for minimum 70 days in the preceding two
consecutive contribution periods.
 Daily rate of benefits double the standard sickness benefit rate, i.E. Full wages.
 Normally payable for max 12 weeks for confinement and 6 weeks for miscarriage or
medical termination of pregnancy.
 Payable even in the event of the death of the woman.
DISABLEMENT BENEFIT
 In case of temporary disability arising out of employment injury, this benefit is

admissable for the entire period certified by an insurance medical officer/practitioner
for which the insured person does not work for wages.
 Rate payable not less than 70% of daily wages; minimum 3 days of incapacity
required.
 In case injury results in permanent, partial or total loss of earning capacity, periodical
payments to be made for life. One-time lumpsum is permissible in certain cases.
DEPENDANTS’ BENEFIT
Periodical pension paid to dependants of deceased where death occurs out of employment
injury or disease.
 Widows: 3/5th of benefit rate for life or until remarriage
 Children: 2/5th of benefit rate until 18
 Total amount distributed not to exceed ceiling of disablement benefit.
 Benefit not paid to married daughters.
 In case there is no widow or child, benefit can be paid to other dependants including
parents.
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 Amount paid is reviewed and increases granted from time to time to compensate for
erosion in real value and cost of living.
MEDICAL BENEFIT
 Insured persons and their families entitled to free, full and comprehensive medical
care.
 Extended upto two years for chronic and long-term diseases.
 Treatment continues even if person goes out of coverage, till sickness ends.
 Package covers all aspects of health care from primary to super-specialist facilities,
such as:
1) Out-patient treatment
2) Domiciliary treatment
3) Specialist consultation and diagnostic facilities
MEDICAL BENEFIT (CONTD.)
1) In-patient treatment
2) Free supply of drugs and dressing
3) X-ray and laboratory investigations
4) Vaccination and preventive innoculations
5) Ante-natal, confinement, post-natal care
6) Ambulance service or conveyance charges
7) Free diet during admission in hospitals
8) Free supply of artificial limbs, aids and appliances for physical rehabilitation
9) Family welfare services and other national health programme services
10) Medical certification
11) Special provisions including super-speciality treatment.
FUNERAL BENEFIT
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 Funeral expenses are in the nature of a lump sum payment upto a maximum of
rs.2500 made to defray the expenditure of the funeral of deceased insured person.
 The amount is paid either to the eldest surviving member of the family or, in his
absence, to the person who actually incurs the expenditure on the funeral.
ALL BENEFITS UNDER THE ESI SCHEME ARE PAID IN CASH EXCEPT
MEDICAL BENEFIT, WHICH IS GIVEN IN KIND.
UNIT 8- The employee Provident fund & Miscellaneous provisions Act,

1952

8.3. Employees’ Family Pension Scheme,
8.4. Employees’ Deposit-linked Insurance Scheme,
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[(a) “Appropriate Government” means-

(i) In relation to an establishment belonging to, or under the control of the
Central Government or in relation to an establishment connected with a
railway company, a major port, a mine or an oilfield or a controlled
industry, 2[or in relation to an establishment having departments or
branches in more than one State], the Central Government; and

(ii) In relation to any other establishment, the State Government
(b) “Basic wages” means all emoluments which are earned by an employee while

on duty or 4[on leave or on holidays with wages in either case] in accordance
with the terms of the contract of employment and which are paid or payable in
cash to him, but does not include-

(i) The cash value of any food concession;

(ii) Any dearness allowance (that is to say, all cash payments by whatever
name called paid to an employee on account of a rise in the cost of
living), house-rent allowance, overtime allowance, bonus, commission
or other similar allowance payable to the employee in respect of his
employment or of work done in such employment;

(iii) Any presents made by the employer;
[(l)] The Central Government may, by notification in the Official Gazette,

frame a scheme to be called the Employees’ Provident Fund Scheme for the
establishment of provident funds under this Act for employees or for any class
of employees and specify the 2[establishments] or class of 2[establishments]
to which the said Scheme shall apply 3[and there shall be established, as
soon as may be, after the framing of the scheme, a fund in accordance with the
provisions of this Act and the Scheme]:

(l -A) The Fund shall vest in, and be administered by, the Central Board
constituted under Sec. 5-A.

(1-B) Subject to the provisions of this Act, a scheme framed under sub-section
(1) may provide for all or any of the matters specified in Sch. II.]
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(2) A scheme framed under sub-section (1) may provide that any of its
provisions shall take effect either prospectively or retrospectively on such date
as may be specified in this behalf in the Scheme.]
8.3. Employees’ Family Pension Scheme-

 Purpose: The purpose of the scheme is to provide for (1) superannuation pension,
retiring pension or permanent total disablement pension to employees covered by the
Employees’ Provident Funds and Miscellaneous Provisions Act, and (2) widow or
widower’s pension, children pension or orphan pension payable to the beneficiaries of
such employees.
1. Employee: Not required
2. Employer :
(a) 8.33% on Basic + DA
It is to be noted that where the pay of the member exceeds Rs. 6,500/- per month, the
contribution payable by the employer will be limited to the amt. payable on his pay of
Rs. 6,500/- only.
8.4. Employees’ Deposit-linked Insurance Scheme:-

 Purpose : To provide life insurance benefits to the employees of the establishments
covered by the EPF & MP Act, 1952
1. Employees: Not required

2. Employer :
(a) 0.5% on Basic + DA
(b) Administrative Charges: 0.01% on
Basic +DA
Where the monthly pay of an employee is more than Rs. 6,500 the contribution payable
in respect of him by the employer is limited to the amts payable on a monthly pay of Rs.
6,500 only.

(1) The Central Provident Fund Commissioner, any Additional Central Provident
Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional
Provident Fund Commissioner, or any Assistant Provident Fund
Commissioner may, by order, -
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(a) In a case where a dispute arises regarding the applicability of this Act to
an establishment, decide such dispute; and
(b) Determine the amount due from any employer under any provision of
this Act, the Scheme of the 3[Pension] Scheme or the Insurance
Scheme, as the case may be; and for any of the aforesaid purposes may
conduct such inquiry as he may deem necessary.]
(2) The officer conducting the inquiry under sub-section (1) shall, for the purposes
of such inquiry, have the same powers as are vested in a Court under the Code
of Civil Procedure, 1908 (5 of 1908), for trying a suit in respect of the
following matters, namely:
(a) Enforcing the attendance of any person or examining him on oath;
(b) Requiring the discovery and production of documents;
(c) Receiving evidence on affidavit;
(d) Issuing commissions for the examination of witnesses;

(1) Subject to the provisions of section 17, every employee who is a subscriber to any
provident fund of [an establishment] to which this Act applies shall, pending the application
of a Scheme to] the [establishment] in which he is employed, continue to be entitled to the
benefits accruing to him under the provident fund, and the provident fund shall continue to be
maintained in the same manner and subject to the same conditions as it would have been if
this Act had not been passed.
(2) On the application of any Scheme to [an establishment], the accumulations in any
provident fund of the [establishment], standing to the credit of the employees who become
members of the Fund established under the Scheme] shall, notwithstanding anything to the
contrary contained in any law for the time being in force or in any deed or other instrument
establishing the provident fund but subject to the provisions, if any, contained in the Scheme,
be transferred to the Fund established under the Scheme, and shall be credited to the accounts
of the employees entitled thereto in the Fund.

(1) Where an employee employed in an establishment to which this Act applies
leaves his employment and obtains re-employment in another establishment to
which this Act does not apply, the amount of accumulations to the credit of
such employee, in the Fund or as the case may be, in the provident fund of the
establishment left by him shall be transferred, within such time as may be
specified by the Central Government in this behalf to the credit of his account
in the provident fund of the establishment in which he is re-employed, if the
employee so desires and the rules in relation to that provident fund permit
such transfer.
(2) Where an employee employed in an establishment to which this Act does not
apply leaves his employment and obtains re-employment in another
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establishment to which this Act applies the amount of accumulation to the
credit of such employee in the provident fund of the establishment left by him
may, if the employee so desires and the rules in relation to such provident fund
permit, be transferred, to the credit of his account in the Fund or, as the case
may be, in the provident fund of the establishment in which he is re-
employed.]
8.8. Obligations & Rights of employer & employees:-

Obligations & Rights of employer:-
 Employer contributing 8.33% of the employees pay towards EPF during last
15days.
 Implementation of direction issued by Central Board
 Consolidated report within 3 months to RPFC
 Particulars of employee & his family if not a member of EPF in his previous
employment.
 Furnish & intimate RPFC within 15days about their branches, dept., directors,
owners, managers etc.
 Ensurity of collection of particulars of the employees and his family.
 Submit a statement of every contractor within last 7days of every month.
 Employees leaving service, report shall be sent to RPFC within 15days of

preceding month.
Obligations & Rights of employee:-
 Furnish particulars about himself and his family.
 Medical tests prescribed by the central board for benefits on permanent

disablement.
 Refund contribution along with interest.
UNIT-9 Payment of Gratuity act, 1972

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9.2. Payment of gratuity: Amount of Gratuity
9.3. Nominations
9.4. Compulsory Insurance
9.5. Forfeiture, exemption
9.6. Inspectors, Power of inspectors
Gratuity is one of the most misunderstood and misconstrued components of a person’s salary.
In simple terms, it is a retirement benefit paid as gratitude to the employees who have
rendered a continuous service for at least five years to incentivize them so that they continue
working efficiently. It is an amount paid to an employee based on the duration of his total
service but an employee becomes eligible only after he has completed 5 years of his service.
Gratuity is paid to an employee when he either retires or his employment is terminated or he
resigns or upon his death. Gratuity is given the force of law by the Payment of Gratuity Act
1972, which is further administered and enforced by the Central Government and the
designated establishments under its control.
Definitions:-
(a) “Appropriate Government” means,-

(i) in relation to an establishment:-
(a) belonging to, or under the control of, the Central Government
(b) having branches in more than one State
(c) of a factory belonging to, or under the control of, the Central Government.
(d) of a major port, mine, oilfield or railway company, the Central Government.
(ii) in any other case, the State Government.
“Factory” has the meaning assigned to it in clause (m) of section 2 of the Factories Act, 1948
(63 of 1948);
9.2. Payment of gratuity: Amount of Gratuity:-

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(1) Gratuity shall be payable to an employee on the termination (Section 4)of his employment
after he has rendered continuous service for not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation,
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary
where the termination of the employment of any employee is due to death or disablement:
Provided further that in case of death of the employee, gratuity payable to him shall be paid
to his nominee or, if no nomination has been made, to his heirs, and where any such
nominees or heirs is minor, the share of such minor, shall be deposited with the Controlling
Authority who shall invest the same for the benefit of such minor in such bank or other
financial institution, as may be prescribed, until such minor attains majority.
9.3. Nominations:-
(1) Each employee, who has completed one year of service, shall make, within such time, in
such form and in such manner, as may be prescribed, nomination for the purpose of the
second proviso to sub-section (1) of Section 4.
(2) An employee may, in his nomination, distribute the amount of gratuity payable to him
under this Act amongst more than one nominee.
(3) If an employee has a family at the time of making a nomination, the nomination shall be
made in favour of one or more members of his family, and any nomination made by such
employee in favour of a person who is not a member of his family, shall be void.
(4) If at the time of making a nomination the employee has no family, the nomination may
be made in favour of any person or persons but if the employee subsequently acquires a
family, such nomination shall forthwith become invalid and the employee shall make, within
such time as may be prescribed, a fresh nomination in favour of one or more members of his
family.
(5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified by
an employee at any time, after giving to his employer a written notice in such form and in
such manner as may be prescribed, of his intention to do so.
(6) If a nominee predeceases the employee, the interest of the nominee shall revert to the
employee who shall make a fresh nomination in the prescribed form, in respect of such
interest. (7) Every nomination, fresh nomination or alteration of nomination, as the case may
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be, shall be sent by the employee to his employer, who shall keep the same in his safe
custody
9.4. Compulsory Insurance:-

(1) With effect from such date as may be notified by the appropriate Government in this
behalf, every employer, other than an employer or an establishment belonging to, or under
the control of, the Central Government or a State Government, shall, subject to the provisions
of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment
towards the gratuity under this Act, from the Life Insurance Corporation of India established
under the Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other prescribed
insurer: Provided that different dates may be appointed for different establishments or class
of establishments or for different areas.
(2) Where an employer fails to make any payment by way of premium to the insurance
referred to in sub-section (1) or by way of contribution to an approved gratuity fund referred
to in sub-section (2), he shall be liable to pay the amount of gratuity due under this Act
( including interest, if any, for delayed payments) forthwith to the controlling authority.
9.5. Forfeiture, exemption:-
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Exemption:-
Appropriate government may grant exemption
To whom:- to establishment, factory etc. and employee or class of employee employed in any
establishment, factory, etc.
When:- if they are receipt of gratuity or pensionary benefits not less than the act.
9.6. Inspectors, Power of inspectors:-
Inspectors:-
(1) The appropriate Government may, by notification, appoint as many Inspectors, as it
deems fit, for the purposes of this Act.
(2) The appropriate Government may, by general or special order, define the area to which
the authority of an Inspector so appointed shall extend and where two or more Inspectors are
appointed for the same area, also provide, by such order, for the distribution or allocation of
work to be performed by them under the Act.
(3) Every Inspector shall be deemed to be a public servant within the meaning of Sec. 21 of
the Indian Penal Code, 1860 (Act 45 of 1860)..
Power of Inspectors:-
(1) Subject to any rules made by the appropriate Government in this behalf, an Inspector
may, for the purpose of ascertaining whether any of the provisions of this Act or the
conditions, if any, of any exemption granted thereunder, have been complied with, exercise
all or any of the following powers, namely:-
(a) require an employer to furnish such information as he may consider necessary;
(b) enter and inspect, at all reasonable hours, with such assistants (if any), being persons
in the service of the Government or local or any public authority, as he thinks fit, any
premises of or place in any factory, mine, oil-field, plantation, port, railway company,
shop or other establishment to which this Act applies, for the purpose of examining any
register, record or notice or other document required to be kept or exhibited under this
Act or the rules made thereunder, or otherwise kept or exhibited in relation to the
employment of any person or the payment of gratuity to the employees, and require the
production thereof for inspection;
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(c) examine with respect to any matter relevant to any of the purposes aforesaid, the
employer or any person whom he finds in such premises or place and who, he has
reasonable cause to believe, is an employee employed therein;
(d) make copies of, or take extracts from any register, record, notice or other document,
as he may consider relevant, and where he has reason to believe that any offence under
this Act has been committed by an employer, search and seize with such assistance as
he may think fit, such register, record, notice or other document as he may consider
relevant in respect of that offence;
(e) exercise such other powers as may be prescribed.
2) Any person required to produce any register, record, notice or other document or to give
any information, by an Inspector under sub-section (1) shall be deemed to be legally bound
to do so within the meaning of Sections 175 and 176 of the Indian Penal Code (45 of 1860).
(3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall so far as may
be, apply to any search or seizure under this section as they apply to any search or seizure
made under the authority of a warrant issued under Section 94 of that Code.
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UNIT 10- Maternity Benefit Act, 1961
10.2. Right to payment of maternity benefit
10.3. Forfeiture of maternity benefit
10.4. Payment of maternity benefit in case of death of a woman
10.5. Payment of medical bonus
10.6. Leave for miscarriage
10.7. Leave for illness arising out of pregnancy, delivery, premature birth of child, or
miscarriage
10.8. Nursing breaks

Short title, extent and commencement.-
(1) This Act may be called the Maternity Benefit Act, 1961.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as may be notified in this behalf in the Official
Gazette,-
(a) in relation to mines in the territories to which this Act extends, by the Central
Government; and
(b) in relation to other establishments in a State, by the State Government:
2. Application of Act.-
(1) It applies, in the first instance, to every establishment being a factory, mine or plantation
including any such establishment belonging to Government:
Provided that the State Government may, with the approval of the Central Government, after
giving not less than two months' notice of its intention of so doing, by notification in the
Official Gazette, declare that all or any of the provisions of this Act shall apply also to any
other establishment or class of establishments, industrial, commercial, agricultural or
otherwise.
(2) Nothing contained in this Act shall apply to any factory or other establishment to which
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the provisions of the Employees' State Insurance Act, 1948, (34 of 1948) apply for the time
being.
3. Definitions.-
In this Act, unless the context otherwise requires,-
(a) "appropriate Government" means, in relation to an establishment being a mine, the

Central Government and in relation to any other establishment, the State Government;
(b) "child" includes a still-born child;
(c) "delivery" means the birth of a child;
(d) "employer" means -
(I) in relation to an establishment which is under the control of the Government, a person or
authority appointed by the Government for the supervision and control of employees or
where no person or authority is so appointed the head of the department.
(ii) in relation to an establishment under any local authority, 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;
(iii) in any other case, 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 any other persons
whether called a manager, managing director, managing agent, or by any other name, such
person;
(e) "establishment" means a factory, mine, or plantation, or an establishment to which the

provisions of this Act have been declared under sub-section (1) of section 2 to be applicable;
(f) "factory" means a factory as defined in clause (m) of section 2 of the Factories Act, 1948
(63 of 1948);
(g) "Inspector" means an Inspector appointed under section 14;
(h) "maternity benefit" means the payment referred to in sub-section (1) of section 5;
(I) "mine" means a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of
1952);
(j) "miscarriage" means expulsion of the contents of a pregnant uterus at any period prior to
or during the twenty sixth week of pregnancy but does not include any miscarriage, the
causing of which is punishable under the Indian Penal Code;
(45 of 1860)
(k) "plantation" means a plantation as defined in clause (f) of section 2 of the Plantations
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Labour Act, 1951 (69 of 1951);
(j) "prescribed" means prescribed by rules made under this Act;
(m) "State Government" in relation to a Union territory, means the Administrator thereof;
(n) "wages" means all remuneration paid or payable in cash to a woman, if the terms of the
contract of employment, express or implied, were fulfilled and includes -
(1) such cash allowances (including dearness allowance and house rent allowance) as a
woman is for the time being entitled to;
(2) incentive bonus; and
(3) the money value of the confessional supply of food grains and other articles, but does not
include -
(I) any bonus other than incentive bonus;
(ii) over -time earnings an any deduction or payment made on account of fines;
(iii) any contribution paid or payable by the employer to any pension fund or provident fund
or for the benefit of the woman under any law for the time being in force; and
(iv) any gratuity payable on the termination of service;
(o) "woman" means a woman employed, whether directly or through any agency, for wages
in any establishment.
10.2. Right to payment of maternity benefit:-

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer
shall be liable for, the payment of maternity benefit at the rate of the average daily wage for
the period of her actual absence immediately preceding and including the day of her delivery
and for the six weeks immediately following that day.
Explanation - For the purpose of this sub-section, the average daily wage means the average
of the woman's wages payable to her for the days on which she has worked during the period
of three calendar months immediately preceding the date from which she absents herself on
account of maternity, or one rupee a day, which ever is higher.
(2) No woman shall be entitled to maternity benefit unless she has actually worked in an
establishment of the employer from whom the claims maternity benefit, for a period of not
less than one hundred and sixty days in the twelve months immediately preceding the date of
her expected delivery:
Provided that the qualifying period of one hundred and sixty days aforesaid shall not apply to
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a woman who has immigrated into she State of Assam and was pregnant at the time of the
immigration.
Explanation. - For the purpose of calculating under this sub-section the days on which a
woman has actually worked in the establishment, the days for which she has been laid off
during the period of twelve months immediately preceding the date of her expected delivery
shall be taken into account.
(3) The maximum period for which any woman shall be entitled to maternity benefit shall be
twelve weeks, that is to say, six weeks up to and including the day of her delivery and six
weeks immediately following that day:
Provided that where a woman dies during this periods, the maternity benefit shall be payable
only for the days up to and including the day of her death:
Provided further that where a woman, having been delivered of a child, dies during her
delivery or during the period of six weeks immediately following the date of her delivery,
leaving behind in either case the child, the employer shall be liable for the maternity benefit
case the child, the employer shall be liable for the maternity benefit for the entire period of
six weeks immediately following that day of her delivery but if the child also dies during the
said period, then, for the days up to and including the day of the death of the child.
5. Forfeiture of maternity benefit. –

If a woman works in any establishment after she has been permitted by her employer to
absent herself under the provisions of section 6 for any period during such authorized
absence, she shall forfeit her claim to the maternity benefit for such period.
6. Payment of maternity benefit in case of death of a woman.-

If a woman entitled to maternity benefit or any other amount under this Act, dies before
receiving such maternity benefit or amount, or where the employer is liable for maternity
benefit under the second proviso to sub-section (3) of section 5, the employer shall pay such
benefit or amount to the person nominated by the woman in the notice given under section 6
and in case there is no such nominee, to her legal representative.
7. Payment of medical bonus.-

Every woman entitled to maternity benefit under this Act shall also be entitled to receive
from her employer a medical bonus of twenty-five rupees, if no pre-natal confinement and
post-natal care is provided for by the employer free of charge.
8. Leave for miscarriage.-

In case of miscarriage, a woman shall, on production of such proof as may be prescribed, be
entitled to leave with wages at the rate of maternity benefit, for a period of six weeks
immediately following the day of her miscarriage.
58 | P a g e
9. Leave for illness arising out of pregnancy, delivery, premature birth of
child, or miscarriage.-
A woman suffering from illness arising out of pregnancy, delivery, premature birth of child
or miscarriage shall, on production of such proof as may be prescribed, be entitled, in
addition to the period of absence allowed to her under section 6, or, as the case may be, under
section 9, to leave with wages at the rate of maternity benefit for a maximum period of one
month.
10. Nursing breaks.-

Every woman delivered of a child who returns to duty after such delivery shall, in addition to
the interval for rest allowed to her, be allowed in the course of her daily work two breaks of
the prescribed duration for nursing the child until the child attains the age of fifteen months.
59 | P a g e
SHORT NOTES
“So long as you do not achieve social liberty, whatever freedom is

provided by the law is of no avail to you”
- Dr. B. R. Ambedkar
60 | P a g e

Final Notes 307-C Labour Law 1-08-2016

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MBA 307 C – Labour Laws

VIVEK VIKAS YAWALKAR

1. Factories Act, 1948 (06)

2. Minimum wages Act, 1948 (04)

7. Employees state insurance Act, 1948 (03)

1.1. Object & Definitions:-

(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or

1.2 PROVISIONS REGARDING THE HEALTH OF WORKERS

1.4 PROVISIONS REGARDING THE WELFARE OF WORKERS

1.5 OBLIGATIONS OF WORKERS

Section 111 lays down that no worker in a factory

1.6 Penalties and Procedures.

Offences Imprisonment Fine

(a) Imprisonment for a term which may extend to three months;

(b) Fine which may extend to one lace rupees; or

(c) Both fine and imprisonment.

If a worker misuses an appliance related to welfare, safety and health of workers, or in

2.1. Object, Applicability & definitions

2.1. Object, Applicability & definitions:-

2. It should be capable of being expressed in terms of money.

3. It should be payable to a person employed in respect of his employment or of work done

5. It should be payable if the terms of employment, express or implied, are fulfilled.

6. It includes house rent allowance.

1. The Living Wage ( highest standard of wage)

2. The Fair Wage (between living and minimum wage)

3. The Minimum Wage.( it is the lowest standard of wage)

3. Appropriate government [2. (b)]: "appropriate government" means:

2.2. Fixation of minimum rate of wages: -(sec 3 to Sec 5)

Different Minimum Wages May Be Fixed By The Government For:

 Different employments (specified in the schedule)

 Adults, adolescents, children and apprentices

 By such other larger wage period

2.3. Procedure for fixing and revising minimum wage:

Procedure for fixing and revising minimum wages.

2.4. Offences & Penalties:

3.1. Object, Applicability & definitions

3.1. Object, Applicability & definitions

Industrial or other establishment” means] any—

[(c)inland vessel, mechanically propelled;] (d)mine, quarry or oil-field; (e)plantation; (f)

(g) establishment in which any work relating to the construction, development or

3.2. Time of payment of Wages.

Illustration: if the employee was terminated or removed from the employment by

3.3 Deductions from wages:-

The following are not called as the deduction

 Stoppage of the increment of employee.

Deductions [Sec 7 (2)]

Limit for deductions [Sec 7 (3)]

DEDUCTIONS FOR ABSENCE FROM DUTY. [Sec 9]

DEDUCTIONS FOR DAMAGE OR LOSS. [Sec 10]

3.4 Obligations of Employers & Employees:-

What is the responsibility of the employer towards payment of wages to employee?

4.1. Object, Applicability & definitions

4.1. Object, Applicability & definitions

4.2. Calculation of Bonus:-

4.3. Time limit for payment:-

Recovery of bonus due from an employer [Sec 21]

4.4. Employees entitled to Bonus:-

 Every employee shall be entitled to be paid by his employer in an accounting year,

4.5. Payment of min/max Bonus:-

4.7 Set-On and Set-Off Of Allocable Surplus [Sec 15]

Set-On (In case of huge profits,)