Industrial law

Industrial relations &labor enactment(performing)-
Industrial law
RAMESHWARI SONKER
MANAGEMENT

Concept of labour legislation
 Meaning of labour legislations
 Are used to cover all the law of the govt
 Which have been enacted to deal with employment, non-employment, wages,
working conditions, industrial relations, social and economic security, and
welfare of persons employed in industries.
 Also called labour law or employment law
 Is the body of law, ruilling of administrative, and precedents (guides)
 Which address the relationship between employee, eR,
 Labour law emerge(appear) when the eR tried to restrict the powers of workers
or keep labor cost low
 The worker began demanding better conditions or improve their standard of
living

 The eR costs increased due to worker demand
 This led to a chaotic (confuse) situation which required the involvement of govt
 In order to put an end to the disputes between the ever warring (opposing) employer
and employee
 The govt enacted many labor laws
 LL Harmonize (match) many angles of the relationship between trade union, eE and eR
 LLs in India are so numerous(many), complex and ambiguous (unclear)
 They promote resolution of problems relating to industrial relation
 The labor movement has been enacting in the 19th and 20th centuries

Nature of Labor legislation
Product of industrial revolution
 The labor laws are the product for industrial revolution
 Because of LL industrial revolution is possible
Regards individual as a worker
 Whereas social law consider him primarily as a citizen but LL treat as individual
 These set of laws go out of the way in protecting workers and securing justice to
them
 The influences of discrimination justice and distributive justice can be clearly
seen over them
Deals with problems of labor
 LLs seek to deal with the problems arising

Labour Legislation
 Labour legislation refers to the body of laws that deals
with matters arising out of the occupational status of the
workers.
 It is the body of laws , administrative rulings that address
the legal rights of and puts restrictions on working
people and their organizations .

Objective of Labour Legislation
The objectives of Labour legislation is of two folds .
 To improve the service conditions of industrial labour so
as to provide for them ordinary amenities of life,
 To bring about industrial peace which could in its turn
accelerate and fast track the productivity of the country
resulting in its prosperity.

Factors influencing Evolution of
Labour legislation
Several factors which urged for the evolution of labour
legislation in India :-
• Early Industrialism
• Influence of colonial (foreign)rules
• The rise of Trade Union
• The growth of Humanitarian ideas and the concept of
Social justice
• Establishment of ILO
• National movement
• Indian constitution

Types of Labour legislation
 Welfare and Protective Labour legislation
 Social security legislations
 Legislations concerning wages
 Industrial relations legislations

Legislations on working conditions
(Protective and welfare labour legislations
)
These are legislations that are
meant to protect the working conditions of the
workers at the workplace. These legislations
provide the following provisions to the workers
at the work place.
 Health and safety provisions
 Welfare provisions
 Provisions to regulate annual leaves of workers
 Provisions to regulate working hours

The various legislations for regulation of
working conditions are
 Factories Act – 1948
 Mines Act – 1952
 Contract Labour (Regulation and Abolition Act
)- 1970
 Plantation Labour act , 1951
 Dock Workers (Regulation of Employment Act
),1948
 A.P.Shops and Establishments Act , 1988

Social Security Legislations
These are the legislations that are meant to protect the
employee and his family during the days of his
unemployment may be because of
 Death
 Accident
 Sickness
 Retirement

Different types of Social Security
Legislations
1. The workmen’s Compensation Act – 1923
2. The ESI Act – 1948
3. The EPF Act- 1952
4. The payment of Gratuity Act- 1972

Legislations concerning
Wages
These are the legislations that are meant
to regularize the payment of the
employees in both organized and
unorganized industries and also to provide
them with minimum amount of payment.

Various legislations concerning wages
are
 Payment of wages Act, 1936
 Minimum Wages Act , 1948
 Payment of Bonus Act, 1965
 Equal remuneration Act, 1976

Industrial Relations Legislations
These are the legislations that provide guidelines to both
the employer and the employees for the maintenance of
sound industrial relations in the organizations.

The various types of industrial relations
legislations are
 Industrial Disputes Act, 1948
 Industrial Employment Standing Orders Act,
1946
 Indian Trade Union Act, 1926

Factories Act , 1948
In order to regulate the working conditions of the workers in
factories and to protect the workers there of a legislation named
Factories act, 1948 came into existence.
The act is a piece of social welfare provision meant to
 Regulate the health, safety and welfare of the workmen .
 Regulate the working hours of workmen
 Provide them with annual leaves (with wages)
 Regulate and control the employment of women and young
persons in factories .

Major Industrial Laws
 The Industrial Dispute Act, 1947
 The Payment Of Wages Act, 1936
 The Minimum Wages Act, 1948
 The Payment Of Gratuity Act, 1972

The Industrial Disputes Act, 1947
 Important Definitions
 Authorities under the Industrial Disputes Act
 Award & Settlement
 Strikes
 Lock-outs
 Lay Offs
 Retrenchments
 Closure
 Case Law Studies

Important Definitions
 Industry [S.2(j)]: means any business, trade, undertaking,
manufacture or calling n business of employers and includes
any calling means business, service, employment means
service, handicraft, or industrial occupation or avocation
means calling of workmen.
 Employer [S.2(g)]: means-
i. In relation to an industry carried on by or under the authority
of any department of the Central Government or a State
Government – the authority prescribed in this behalf;
ii. In relation to an industry carried on by or on behalf of a local
authority – the Chief Executive Officer of that authority.

 Industrial Dispute [S.2(k)]: means any dispute or
difference between-
i. Employers and Employers, or
ii. Employers and Workmen, or
iii. Workmen and Workmen,
which is connected with-
i. The employment or non-employment, or
ii. The terms of employment, or
iii. The conditions of labour.
of any person related directly or indirectly to the industry.

 Workman [S.2(s)]: means any person (including an apprentice) employed in any
industry to do any-
i. Manual
ii. Skilled
iii. Unskilled
iv. Technical
v. Operational
vi. Clerical
vii. Supervisory
work for hire or reward, whether the terms of employment be expressed or implied
n understood , and in relation to an Industrial Dispute, includes any such person
who has been dismissed, discharged or retrenched n cut down in connection with,
or as a consequence n result of, that dispute or whose dismissal, discharge or
retrenchment has led

 Workman (contd.): to that dispute. Workman does not include any such person,
who is:-
i. Subject to the Air Force Act, 1950, the Army Act, 1950, or the Navy Act, 1957, or
ii. Employed in the police service or as an officer or other employee of a prison, or
iii. Employed mainly in a managerial or administrative capacity, or
iv. Employed in a supervisory capacity
v. Exercises functions mainly of managerial nature, by the duties attached to the office
or by the reason of power vested n assigned in him.

 Public Utility Service [S.2(n)]: means-
i. Any railway service or any transport service for the carriage n way of moving of
passengers or goods by air;
ii. Any service in, or in connection with the working of, any major port or dock;
iii. Any section of an industrial establishment, on the working of which the safety of
the establishment or the workmen employed therein depends;
iv. Any postal, telegraph or telephone service;
v. Any industry which supplies power, light or water to the public;
vi. Any system of public conservancy n safety or sanitation n public health;

Authorities under the Act
The Act has set up machinery to deal with the Industrial Disputes. These
authorities are meant for dealing with the Industrial Disputes. Even though the
name authority is used, it does not mean each and every authority has power to
make a binding n mandatory decision.
The Authorities are:
i. Works Committee (Section 3)
ii. Conciliation n resolution Officer (Section 4,11 & 12)
iii. Board Of Conciliation n bargain (Section 11 & 13)
iv. Court Of Inquiry (Section 6,10,11 &14)
v. Labour Court (Section 7,11 &15)
vi. Industrial Tribunal n court (Section 7A,11 & 15)
vii. National Tribunal (Section 7b,11 & 15)

Award & Settlement
 Award: means an interim or final determination of any Industrial
Dispute to any question relating thereto, by any Labour Court,
Industrial or National Tribunal and includes arbitration award made
under section 10A.
 Settlement (Section 18-21): means a settlement arrived at in the
course of conciliation proceedings and includes a written agreement
between the employer and workman arrived at, otherwise than in the
course of conciliation proceedings where such agreement has been
signed by the parties thereto in such manner as may be prescribed
and a copy thereof has been sent to an officer authorized in this
behalf by the Appropriate Government and the Conciliation Officer.

Strikes
 Strike: means cessation of work by a body of persons in any
Industry:-
a. Acting in combination, or
b. A concerted refusal, or
c. A refusal under a common understanding,
of any number of persons who are or have been so employed
to continue to work or accept employment.
Strike is a weapon in the hands of the workmen, in the process of
collective bargaining. Strike tests the economic bargaining
power of each side and forces each of them to face the need it
has for others contribution. The economic pressure of the
strike is the catalyst which makes the agreement possible.
Collectively bargaining is a process of reaching agreement and
strikes are an integral and frequently necessary part of that
process.

Strikes: in Public Utility Services
 Section 22 says “In case an industry is a public utility
service, no person employed in it shall g o on strike in
breach of contract-
a. Without giving to the employer notice of a strike, provided
within 6 weeks before striking,
b. Within 14 days of giving such notice, or
c. Before the expiry of the date of strike specified in any such
notice; or
d. During the pendency of any conciliation proceedings
before a conciliation offices and 7 days after the
completion of these proceedings”

 Notice of strike should be in prescribed form.
 The copy of this notice is to be submitted to the conciliation
officer, or such authority as may be prescribed by the
Appropriate Government.
 The employer, on receipt of notice of strike from employees,
shall report within 5 days to-
a. Appropriate Government
b. Authority prescribed by the Appropriate Government- which
states the number of notices received on that day.
 The date on which the workman proposed to go on strike
should be specified in the notice.
 A fresh notice is necessary when the date of strike specified
in the original notice expires.

 A new notice is necessary, when the conciliation
proceedings fail, which have started after the notice.
 The object of giving the notice is to allow the other party
to come to terms, or to approach the authorities to
intervene and stop the strike, if possible.
 During the period of notice, the parties can respond to
each other.
 Illegality attaches only to that period which remains to
expire before the commencement of action.

Strikes: General Prohibition
 Section 23 states the general prohibition of strike.
 No workman who is employed in any Industrial Establishment shall
go on strike in the following circumstances:
a. During the pendency of conciliation proceedings before a Board
and 7 days after the completion of these proceedings;
b. During the pendency of proceedings before a Labour Court,
Industrial Tribunal or National Tribunal, and 2 months after the
completion of these proceedings;
c. During the pendency of arbitration proceedings before an
arbitrator and 2 months after the completion of these proceedings;
where notification has been issued under S 10A(3A)
d. During any period in which a settlement or award is in operation in
respect of any of the matters covered by the settlement or award.

Lock-outs
 Lock-out [Section 2(I)] means-
a. The temporary closing down of a place of employment,
b. The suspension of work, or
c. The refusal by an employer to continue to employ any number of persons
employed by him.
 As strike is a weapon in the hands of workmen for enforcing their demand,
lock-out is a weapon in the hands of the employer to persuade the workers
to agree to his point of view and accept his demands in the struggle
between capital and labour.
 The notice of lock-0ut shall be given in prescribed manner.
 On event of employer giving notice of lock-out on any day to any person
employed by him, he shall report the number of notices given to the
Appropriate Government, within 5 days of giving such a notice.

Prohibition of Lock-outs
 The conditions of lock-outs in public utility services are
dictated under Section 22 and are same as the conditions of
Strikes.
 The provisions for general prohibition of lock-outs are
dictated under Section 23, same as the provisions of Strikes.
 The notice of lock-out is not necessary when a lock-out is
already existent in case of a public utility service.
 However, the employer shall send intimation of lock-out to
the authority specified by the Appropriate Government, on
the day of declaration of lockout itself.

Strikes & Lockouts: Wages &
Justification
 Wages are generally not provided during the period of
strikes when it is proven illegal under the Act.
 However, the factor of justification of reasons leading to the
Act of going on strike, also decide the payment or non-
payment of wages to the workmen.
 If a strike is not justified, but legal; or if a strike is illegal, but
duly justified, the workmen are entitled to receive wages for
the period of the strike.
 A lock-out in violation of the statutory requirements is illegal
and unjustified and workers are entitled to wages for the
lock-out period.
 For a legal lock-out, no wages are payable to the workmen.

Strikes & Lock-outs: Penalties
 Prohibition of financial aid to illegal strikes or lock-outs (S.25)
 Penalty for illegal strike (S.26): Any workman who commences, continues or
acts in furtherance of an illegal strike shall be punishable with imprisonment
up to 1 month, or fine up to Rs.50 or both.
 Penalty for instigation (S.27): Any person who instigates or incites other to
take part in a strike or lock-out which is illegal shall be punishable with
imprisonment up to 6 months or with fine up to Rs.1000 or both.
 Penalty for giving financial aid to illegal strikes and lock-outs (S.28):
Punishable with imprisonment up to 6 months or fine up to Rs.1000 or both.

Lay-Offs
 Lay-Off means:
i. The failure
ii. Refusal, or
iii. Inability of an employer on account of shortage of:
a. Coal,
b. Power or raw materials, or
c. The accumulation of stocks, or
d. The break-down of machinery, or
e. Natural calamity, or
f. For any other connected reason to give employment;
to a workman whose name is borne on the muster rolls
of his industrial establishment and who has not been
retrenched.

Lay-Offs
 Lay-Off means putting aside workmen temporarily.
 The duration of a Lay-Off should not be longer than that of the
current emergency.
 The employer – workman relationship does not come to an end, but
is suspended during the period of emergency.
 The workman’s name should be essentially present on the muster
rolls of the industry for claiming relief.
 The workman should not have been retrenched.
 If work is given by the employer on a different shift, it would be
considered as a half-day lay-off.
 If employment is not given within two hours, it would be considered
as having laid-off that whole day.

Lay-Offs: Rules and Provisions
 The payment of compensation for a lay-off is dependent
upon-
a. Status of a workman, i.e., badli, casual, or permanent
b. Type of service, i.e., continuous or seasonal
c. Number of workmen in the Industrial Establishment
 Industrial Establishments are classified into three groups
depending on the number of workers employed in that
establishment:
i. Where the number of workmen is less than 50
ii. Where the number of workmen is 50 – 100
iii. Where the number of workmen is more than 100.

Lay-Offs: Compensation
 Compensation is provided to the workmen in an Industrial Establishment on
the basis of the category they fall in from the above mentioned three groups:
i. Nil compensation for IEs with less than 50 workmen.
ii. Compensation at the rate of 50% of the total basic pay and dearness allowance
to a time limit of 45 days for IEs with 50 – 100 workmen.
iii. Compensation at the rate of 50% of the total basic pay and dearness allowance
to a time limit of 45 days for IEs with more than 100 workmen.
 Workmen are not entitled to any compensation if alternate employment is
provided by the employer in a radius of 5 miles, or if the lay-off is a result
of a strike.

Lay Offs: Penalties
 The employer of the Industrial Establishment is required to
prepare a muster register that shows the name and other
requisite details of all workmen in the prescribed format.
 Section 25M states that an employer of an Industrial
Establishment employing 100 or more workmen on average
per day in the preceding 12 months is required to obtain
previous permission of specified authority appointed for the
purpose by the Appropriate Government, by a notification by
the official Gazette.
 Section 25Q says any employer who contravenes the
provision of Section 25M shall be punishable with
imprisonment up to one month, or fine up to Rs.1000 or
both.

Retrenchment
 Retrenchment [S.2(oo)]: means the termination by the employer of the
service of a workman for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action, but does not include-
a. Voluntary retirement of workman, or
b. Retirement of the workman on reaching the age of superannuation, if his
contract contains a stipulation in this behalf, or
c. Termination of the service of a workman as a result of non-renewal of the
contract of employment, or
d. Termination of employment of a workman on the ground of continued ill health.
 The word ‘ill health’ means cataract, physical unfitness, infirmity due to old
age, incapacity to work, leprosy, etc.

Retrenchment
 Retrenchment means the discharge of surplus labour.
 It is not necessary that removal must be only when the establishment
is in loss.
 The Supreme Court has interpreted the term retrenchment in stricter
sense of it, that is to say, it means termination of service for any
reason whatsoever.
 Retrenchment connotes in its ordinary acceptation that the business
itself is being continued but that a portion of the staff of labour force
is discharged a surplusage.
 Where a worker suffers an accident during the course of employment
making him unfit for the job, termination on this ground is illegal.
 Where seasonal worker ceases to do work due to closure of season,
it is not retrenchment.

Retrenchment: Provisions & Rules
 Provisions are divided into two main categories which are as follows:
i. Where number of workmen employed is less than 100,
ii. Where number of workmen employed is more than 100.
 Section 25F: No workman employed in any industry who is in continuous
service for not less than one year under an employer shall be retrenched
until-
a. The workman is given one month’s notice in writing indicating the reasons for
retrenchment and the period of notice has expired, or
b. In case one month’s notice is not given, the workman is paid wages for the
period of the notice, in lieu of the notice period.

c. The workman is paid at the time of retrenchment, compensation
which shall be equal to 15 days average pay for every
completed year of continuous service or any part thereof in
excess of six months, and
d. Notice in the prescribed manner is served on the Appropriate
Government.
• Section 25G: The normal rule is to retrench first of all the
junior most workman. If an employer has sufficient reasons
to depart from this rule, only then he can do so, but the
reasons have to be recorded.
• The LIFO (Last In First Out) Principle is mentioned in the
Section 25G, which states that the workman who is employed
last will be retrenched first.

 Section 25H gives a statutory right of reemployment to the
retrenched workmen.
 If the employer wants to take the workmen in future, the
retrenched workman has a right of preference over the others.
 This provides for preferential reemployment of the
retrenched workmen.
 The employer should take precaution that he pays the
retrenchment compensation at the time of retrenchment.
 In case the workman denies to accept compensation for the
same, the employer should have sufficient proof that
retrenchment compensation was offered to the workman, and
clearly denied by him.

 Section 25K points out that the provisions of this chapter are
applicable to Industrial Establishments employing 100 or more
workmen on average per working day for the preceding 12
months.
 This establishment should not be of a seasonal character or in
which work is performed only intermittently.
 Section 25N specifies that no workman who is in continuous
service for not less that one year under an employer shall be
retrenched until-
a. The workman has been given three months notice in writing
indicating the reasons for retrenchment and the notice period
has expired or the workman has been paid in lieu of such
notice, wages for the period of notice.
b. Notice in the prescribed manner has been given to the
Appropriate Government and permission is granted.

Retrenchment: Provisions,
Penaltiesc. Workman has been paid compensation at the time of retrenchment
which shall be equal to 15 days average pay for every completed
year of continuous service or any part thereof in excess of six
months.
d. Inquiry is made by the Appropriate Government or specified
authority and granting or refusing permission for the reasons to be
recorded in writing.
e. In case retrenchment is effected without making an application or
where the permission for retrenchment is refused retrenchment
shall be deemed to be illegal from the date on which it is effected
and the workman shall be entitled to all the benefits that are
available to him under the law.
• Section 25Q specifies that any employer who contravenes the
provisions of Section 25N shall be punishable with imprisonment
up to one month or fine up to Rs.1000 or both.

Closure: Definition & Provisions
 Closure [Section 2(cc)]: means permanent closing down of a
place of employment or part thereof.
 The provisions about closure are to be understood with
reference to-
a. Type of service:- i.e., continuous service or not (same as layoff)
b. Number of workmen employed;-
i. No. of workmen less than 50
ii. No. of workmen 50 – 100
iii. No. of workmen 100 or more.
• The closure of an undertaking is subject to the restrictions
imposed by the statutory provisions.

Closure: Rules & Provisions
 Where number of workmen employed is less than 50 [Section 25 FFA & Section
25 FFF], if an undertaking is closed down for any reason whatsoever, every
workman who has been in continuous service for not less that one year in that
undertaking immediately before such closure shall be entitled to notice and
compensation as if the workman has been retrenched.
 If the undertaking is closed down on account of unavoidable circumstances
beyond the control of the employer, the compensation payable to the workman
shall not exceed his average pay for three months.
 If an undertaking is set up for the construction off buildings, bridges, roads,
canals, dams, or other construction work and it is closed down on account of
completion of the work within 2 years from the date on which the undertaking is
set up, then no workman employed by the undertaking shall be entitled to any
compensation.
 In case the construction work takes more that 2 years for completion after it is
set up, then the workman will be entitled to both notice and compensation as per
the rules of retrenchment.

 Where number of workmen employed is more than 50, but less than 100
[Section 25 FFA]:-
a. The employer who intends to close down his undertaking shall have to serve at
least sixty days notice in the prescribed manner on the Appropriate
Government before the date on which the intended closure is to become
effective. The reasons for the same have to be clearly stated.
b. No notice is required when:-
i. The number of workmen employed is less than 50, or
ii. An undertaking is set up for the construction of buildings, bridges, canals, roads, dams
or for other such projects.
iii. The Appropriate Government is satisfied than; owing to exceptional circumstances like
accident in the undertaking, death of employer or similar reason, no notice is required.

c. The compensation payable is the same as if applicable to an
undertaking employing less than 50 workmen.
d. The notice to be given is only information to the Appropriate
Government. The notice does not mean that any previous sanction of
the Appropriate Government is required for the closure of an
undertaking.
• Where the number of workmen is 100 or more [Section 25-O], an
employer who intends to close down his undertaking shall apply to the
Appropriate Government for prior permission, 90 days before the
intended date of closure.
• Copy of this application should also be served on the representatives
of the workmen in the prescribed manner.
• No such application to the Appropriate Government is required when
the construction is the case of canals, bridges, buildings, etc.
• Workmen shall be entitled to compensation in case of a legal closure,
at the rate of 15 days wages for every completed year of continuous
service.

Closure: Penalties
 Penalty for closure [Section 25R]:- Any employer who closes down
an undertaking without complying with the provisions of Section 25-
) shall be punishable with imprisonment up to six months or fine up
to Rs.5000 or both.
 Penalty for closure without notice [Section 30A]:- An employer who
closes down any undertaking without complying with the provisions
of Section 25FFA shall be punishable with imprisonment up to six
months or fine up to Rs.5000 or both.
 Any employer who contravenes an order refusing to grant
permission to close down an undertaking under Section 25-O(2)
shall be punishable with imprisonment up to one year, or fine up to
Rs. 5000 or both.
 Where the contravention is continuing even then, with a further fine
up to Rs.2000 for every day during which the contravention after
conviction continues can be imposed.

Case Law Studies
1) Syndicate Bank V/s Umesh Nayak
HELD:- The Supreme Court has observed that strike or lock-out
is to be resorted to, only in unavoidable circumstances and
to compel the other party to see the justness of the
demands and is not intended to cause nuisance or physical
danger to their employers or others.
2) Hindustan Cables V/s Labour Court
HELD:- Resorting to strikes or lock-outs without negotiations or
conciliations is unjustified.

Case Law Studies
3) Central India Spinning, Weaving & Manufacturing Co.
Ltd., V/s State Industrial Court
HELD:- The Bombay High Court said the key words “the failure,
refusal, or inability of an employer” in the definition of lay-
off make it clear that the unemployment has to be on
account of a cause which is independent of any action or
inaction on part of the workmen themselves.
4) Morinda Co-op. Sugar Mills V/s Ramakrishnan
HELD:- Where seasonal worker ceases to do work due to closure
of the season it is not retrenchment.

The Payment Of Wages Act, 1936
 Introduction
 Applicability
 Rules relating to Payment of Wages
 Compensation & Penalties

Introduction
 Preamble – To regulate the proper and timely payment of wages to
different classes of workers.
 Important features of the Act-
 Remedies & compensations relating to:
 Wrongful deductions made from wages
 Delay in payment of wages
 Non-payment of wages
 Provisions in the Act:
 Permissible deductions from wages
 Timely payment of wages
 Mode of payment of wages
 Reasonable rates of recovery

Applicability
 The Payment Of Wages Act is applicable to the whole of India.
 The Act is applicable to any employee in a factory, employees of the railway
industry, including those who are employed through a sub-contractor.
 It is also applicable to employees working in any Industrial or Other
Establishment, or any other Establishment stated under Sections [2(i)(a) to
2(i)(g)] of the Payment Of Wages Act.
 The Act covers all those employees who draw a monthly salary of less than
Rs.6500

 Appropriate Government [S.2(i)] is the Central Government in relation to:
a) Railways
b) Air transport services
c) Mines and oil fields
The State Government is the Appropriate Government in all other cases.
 Industrial Establishment [S.2(ii)] means any-
a) Tramway service, or motor transport service for passengers or goods or both by
hire or for reward;
b) Dock, wharf, or jetty,;
c) Inland vessel, mechanically propelled;
d) Mine, quarry or oil field;
e) Plantation;

f. Workshop, or other establishment, where articles are
i. Produced,
ii. Adapted, or
iii. Manufactured,
with a view to their use, transport, or sale.
 Wages [S.2(vi)] means all remuneration (whether by way
of salary, allowances or otherwise) expressed in terms of
money, or capable of being so expressed which would, if
the terms and conditions of employment, whether
expressed or implied, be payable to a person in respect
of his employment or any work done in such
employment, and includes-

a. Any remuneration payable under any award or settlement between the parties or
order of court;
b. Any remuneration to which the person is employed is entitled in respect of
overtime work, or holidays or leave period;
c. Any additional remuneration payable (bonus);
d. Any sum paid on the event of termination of employment;
e. Any sum to which the a person is entitled under any scheme which is framed
under a law currently in force.
But, it does not include-
a. Value of house accommodation, medical and other facilities, amenities and
travelling, medical and other allowances;
b. Contribution paid by the employer to any pension or provident fund;
c. Any special expenses and gratuity paid at termination of employment.

Rules relating to Payment of
Wages Responsibility for Payment of Wages [S.3]: Payment means transfer of
money from one person to another to satisfy a debt or an obligation.
 Every employer is responsible for the payment of wages but this
responsibility is also cast on other persons; they are:
a. In case of factories, the manager of the factory
b. In case of an Industrial Establishment, the person in the post having control and
supervision in the establishment
c. In case of railways, the person nominated for the payment of wages
d. In case of a contractor, the person designated by the contractor
e. In any other case, the person designated by the employer as a person
responsible for complying with the provisions of the Act.

Wages Fixation of Wage Periods and time of Payment of Wages [S.4&5]
 Every person responsible for payment of wages shall fix wage periods.
 A wage period shall not exceed one month.
 Wage period can be daily, weekly, fortnightly, or monthly.
 In case of a Factory or Industrial Establishment or Railways, wherein less than 1000
employees are employed, the wages shall be paid within 7 days after the expiry of
the wage period.
 In any other case, wages shall be paid before the expiry of the 10th day after the
last day of the wage period.
 In case of docks, wharfs, jetties and mines, wages are to be paid before the expiry
of the 7th day on completion of final tonnage account of the material loaded or
unloaded.
 All payment of wages shall be made on a working day.

Wages Mode of Payment of Wages [S.6]
 Under the Payment of Wages Act, wages cannot be paid in kind. They must be
paid in current coins or currency notes or both.
 The employer may, if he desires, after obtaining the written authorization of the
employed person pay his wages either by cheque or by crediting the wages in the
bank account.
 Deductions which may be made from Wages [S.7]
 The usual rule of the payment of wages is that the employed person shall be paid
his wages without any kind of deductions except those authorized under this Act.
 Thus, the Section 7 of this Act is critical.

Authorized Deductions
 Fines [S.8]: An employer may impose a penalty or fine on an
employed person.
 While imposing such fine, the employer has to obtain prior
approval from the Appropriate Government to the acts and
omissions for which the fine many be imposed.
 The employed person will be given a chance to show cause
against imposing of the fine.
 Fine cannot be recovered at a rate more than 3% of the total
wages in the respective wage periods.
 Fine cannot be imposed on a person below the age of 15 years.
 Fine cannot be recovered in installments.
 Fine should be recovered within 3 months from the date of
imposition of fine.

 Deductions for absence from duty [S.9]: An employer has the
power to deduct wages for absence from duty.
 The deduction may be for absence for a whole, or part of a day.
 The deduction shall be in proportion to the time for which an
employed person is absent from duty.
 A person shall be considered as absent from duty, in case
although present in the establishment,
i. When he is absent from the place of work where he is required to
be present and work, or
ii. When he refuses for any unreasonable cause, or
iii. In case of a stay-in-strike to carry out his work.

 Deduction for Damage or Loss [S.10]: If the goods are expressly entrusted to
the employed person for custody or in case he loses money which he is
required to account, where loss/damage is directly attributable to damage or
neglect or the default on his part, deductions from wages can be made.
 The deducted amount shall not exceed the amount of the damage or loss caused
to the employer.
 The employer shall give an opportunity to the employee to show cause against
the fine before making deductions.
 Such deductions have to be recorded in the prescribed register and kept by the
person responsible for payment of wages.

 Deductions for Services Rendered [S.11 & 7(2)]:
 House accommodation: Supplied by the employer or the Government or any
housing board; such deductions cannot be made unless the employed person has
accepted the amenity as term of employment and such deduction shall not exceed
an amount equal to the value of actual house accommodation amenity.
 Deductions for such amenities and service supplied by the employer ad the
Appropriate Government may, by a general or special order authorize; these
deductions can be made only when such supply is accepted as term of
employment by the employed person.
 The term ‘services’ does not include the supply of tools and raw materials, or
protective measures required by nature of the employment.

 Deductions for Recovery of Advances [S.12]: This is subject to the following
conditions-
a. Recovery of an advance of money given before employment began can be made
from the first payment of wages in respect of complete wage period.
b. Recovery of advance of money given after employment began and of wages not
already earned is subject to the conditions imposed by the Appropriate
Government.
c. Recovery of advances of wages not already earned shall be according to the
rules made by the Appropriate Government including the installments by which
they may be recovered.
 Deductions for Recovery of Loans [S.12-A]: can be made as per the rules
approved by the Appropriate Government regulating the extent to which
such loans may be granted and rate of interest payable on it.

 Deductions for Payments to Cooperative Societies and Insurance Schemes
[S.13 & 7(2)]: These deductions shall include-
a. Deductions for payments to cooperative societies approved by the Appropriate
Government or to a scheme of insurance maintained by the Indian Post office.
b. Deductions made with the written authorization of the employed person for-
i. Payment of any premium on his life insurance policy to LIC of India, or
ii. Purchase of Government securities, or
iii. Payment of contribution to any fund or a trade union.
iv. Payment of membership fees to trade union.
v. Contribution to Prime Minister’s National Relief Fund

 Other Deductions:
 Deduction of Income Tax payable by an employed person.
 Deductions according to the order of a court or other authorities competent to
make such order.
 Deductions for subscriptions to and repayment of advances from any provident
fund approved by the Appropriate Government.
 Deductions for payment of insurance premium on Fidelity Guarantee Bonds.
 Limit on Deductions [S.7(3)]: The deductions from wages for the permissible
deductions shall not exceed-
 75% including payments to cooperative societies.
 50% in any other cases
 In case of exceeds in limits of deductions, balance may be recovered in the manner
prescribed by the Appropriate Government.

Remedy & Compensations
 The Payment of Wages Act provides for the constitution of a separate
authority for any specified area to hear and decide claims arising out of
deductions from the wages or delay in the payment of wages.
 The authorities include:
a. Commissioner of Workmen’s Compensation, or
b. Regional Labour Commissioner, or
c. Assistant Labour Commissioner,
d. Presiding officer of Labour Court or Industrial Tribunal, or
e. Judicial Magistrate.
f. Experienced Judge of a civil Court

Remedy & Compensations
 Application: A person himself or any legal practitioner or any official
of a Registered Trade Union authorized in writing to act on behalf of
such person or any inspector under this Act
 Period: Such a claim is to be made within 12 months from the date on
which the deductions were made, or from the date on which payment
of wages was to be made.
 Compensation: If the authority is satisfied that there were wrongful
deductions, it may in addition to the refund of the amount wrongfully
deducted require the employer to pay compensation not exceeding
10 times the actual amount of deductions.
 In case of delayed wages, the employer may be directed to pay the
wages immediately and also impose a penalty not exceeding Rs.3000,
but not less than Rs.1500.

Case Law Studies
 Arumugham V/s Jawahar Mills
HELD:- The expression in Sections [15-17] not only includes
‘delayed wages’ but also covers ‘refused wages’.
 Upper India V/s J.C.Mathur
HELD:- The word ‘deduction’ in Section 15 appears to have been
used in a very wide sense so as to include the ‘entire
deficiency’ which the employee alleges to have been caused
in the Payment of Wages as a result of withholding of the
same by the employer partially or wholly.
 Parmeshwar V/s Atti
HELD:- Payment signifies satisfaction of a claim.

The Minimum Wages Act, 1948
 Introduction
 Fixation & Revision Of Wages
 Other Provisions

Intoduction
 The object of this Act is to secure the welfare of the workers in a competitive
market by fixing the Minimum rates of wages in certain employments.
 The justification for statutory fixation of minimum wages is clear form the
following facts:
 Poorly developed workers organization.
 Poor bargaining power of workers.
 Continuous labour struggle demand for increase in wages, resistance to decrease
in wages, and grant of benefits, allowances, etc.
 The Act has been modified in the recent past to apply to all industrial
establishments and their employees that are involved in any work or job that
fits in the schedule to this Act, fitting the description of ‘Scheduled
Employments’
 The Act intends to prevent exploitation of labour and also has many
provisions that ensure the minimum wages, wages for overtime, maximum
duration of daily work & weekly day of rest.

 Employer [S.2(e)]: means- any person who:
a. Employs
b. Whether directly or through another person
c. Whether on behalf of himself or any other person
d. One or more employees in any scheduled employment
e. In respect of which rates of minimum wages have been fixed.
 Cost of Living Index Number [S.2(d)]: in relation to employees in any
scheduled employment in respect of which minimum rates of wages have to
be fixed, means:
a. The index number
b. Ascertained and declared
c. By the competent authority by notification in the Official Gazette
d. To be the cost of Living Index Number
e. Applicable to employees in such scheduled employments.

 Scheduled Employment [S.2(g)] means-
a. An employment specified in the schedule, or
b. Any process or branch of work forming part of such employment.
The schedule is divided into two parts:
Part-I:
a. Woolen carpet making or shawl weaving, etc.
b. Rice mill, Flour mill, Dal mill, etc.
c. Bidi, Tea, Oil, Coffee, Rubber, Stone, etc.
d. Glass industry
e. Employment under any local authority
Part-II:
a. Agriculture, Horticulture, Poultry, Dairy Farming, etc.
b. Cleaning and sorting of onions and other incidental work.

 Wages [S.2(vi)] means all remuneration (whether by way
a. Any remuneration payable under any award or settlement between the parties or order of
court;
b. Any remuneration to which the person is employed is entitled in respect of overtime work,
or holidays or leave period;
e. Any sum to which the a person is entitled under any scheme which is framed under a law
currently in force.

 Employee [S.2(i)]: means any person:
a. Who is employed for hire or reward,
b. To do any work,
c. Skilled or unskilled,
d. Manual or clerical,
e. In Scheduled Employment,
f. In respect of which minimum wages have been fixed.
a. Value of house accomodation, medical and other facilities, amenities and

 Appropriate Government [S.2(i)] is the Central Government in relation to:
a) Railways
b) Air transport services
c) Mines and oil fields
The State Government is the Appropriate Government in all other cases.
 Employer [S.2(g)]: means-
i. In relation to an industry carried on by or under the authority of any
department of the Central Government or a State Government – the authority
prescribed in this behalf;
ii. In relation to an industry carried on by or on behalf of a local authority – the
Chief Executive Officer of that authority.

Minimum Wages: Fixation & Revision
 Appointment of Committee:
a) The Government may appoint as many committees an sub committees as it
consider necessary to hold inquiries and advise it in respect of such fixation or
revision.
b) After considering the advise of such committees or sub committees the
Appropriate Government notifies the fixation or revision of Minimum Rates of
Wages.
c) Such wages come into force on the date determined in the notification.
d) If no date is mentioned, then on the expiry of 3 months from the date of issue of
notification, the rates of wages and other conditions attached to it will expire.
e) The object of the procedure is to enable the Government to reach a balanced
conclusion relating to fixing minimum wages

 By a Notification:
a) The Appropriate Government may, by a notification, publish its
proposals about the fixation of Minimum Rates of Wages.
b) For the information of all the persons likely to be affected
thereby.
c) It shall specify in the notification the date on which the
proposals shall be taken into consideration.
d) Such date shall not be less than 2 months from the date on
which the proposals have been notified.
e) After considering all the representations received by it within
the specified time.
f) It shall notify the minimum wages was fixed or revised by it.

 By a Notification (contd.):
f) Such Minimum Rates of Wages come into force from the date mentioned in the
notification.
g) If no date is mentioned, then on the expiry of 3 months from the date of issue of
notification, the rates of wages and other conditions attached to it will expire.
h) While adopting this method the Appropriate Government is also required to
consult the Advisory Board.
i) The Advisory board is appointed by Appropriate Government for the purpose of
coordinating the work of different committees and sub committees and also for
advising the Government in matters of fixation and revision of minimum wages,
and also for general consultation.

 The provision relating to fixation of minimum rates of wages are given in
Section 3 as follows:
1) Fix the Minimum Rates of Wages payable to employees employed in an
employment specified in the schedule, and
2) In the employment added to the schedule by a notification.
3) The Appropriate Government may, in respect of employees employed in an
employment specified in Part-II of the schedule, fix rates for
i. Part of the State, or
ii. For any specified class or classes of such employment in the whole state or part of
state.
iii. Instead of fixing Minimum Rates of Wages for the whole State.
4) The Appropriate Government shall review at such intervals not exceeding 5
years, the Minimum Rates of Wages and revise them if necessary.

5) When the Appropriate Government fails to revise the rates of Minimum Wages
within 5 years, it can do so even after the expiry of 5 years as it feels necessary.
6) Until the rates of Minimum Wages are revised, the rates of Wages before the
expiry of 5 years shall continue to be in force.
7) The Appropriate Government my not fix the rates of Minimum Wages in respect
of any schedules employment in which there are less than 1000 employees
engaged in the whole State.
8) The Appropriate Government may fix rates of Minimum Wages which may be in
the form of Minimum Rates for:-
a) Time Work (Minimum Time Rate)
b) Piece Work (Minimum Piece Rate)
c) Remuneration; time work basis (Guaranteed Time Rate)
d) Minimum rate in respect of overtime (Overtime Rate)

Other Provisions
 Sections [3-5] deal with the fixation and revision of Minimum Wages
 Section 3 says the Appropriate Government has powers to fix the
Minimum Wages payable to the employees employed in any scheduled
employment.
 Section 4 gives the content of Minimum Wages.
 Section 5 gives the procedure for fixing and revising the Minimum
Wages.
 Section 12 says that it is absolutely necessary for an employer to pay
every employee engaged in Scheduled employment in the Minimum
Rates of Wages fixed by the Government without any deductions except
those as may be authorized.
 Section 16 says that in case an employee does 2 or more classes of
work to each of which a different Minimum Rates of Wages is
applicable, the employer shall pay to such employee in respect of time
occupied by

Other Provisions
him in each class of work, wages not less than the Minimum Rates of Wages
applicable to each such class.
 Maintenance of Registers and Records (Section 18)
Every employer shall maintain Registers and Records giving:
i. Particulars of Employees
ii. Work performed by Employees
iii. Wages paid to Employees
iv. Receipt given by the Employers
v. Other particulars in such form as may be prescribed
 Rates of Overtime (Section 14)
i. Where an employee works overtime, the employer shall pay him over time wages
for every hour worked in excess at the rates fixed by the Appropriate
Government.
ii. The provisions of Minimum Wages Act shall not affect the provisions of Factories
Act relating to payment of over time at twice the minimum rate of normal wages.

Other Provisions
 Claims (Section 20)
The Appropriate Government may appoint an authority to hear out and decide the
claims relating to –
i. Payment of less than Minimum Rates of Wages.
ii. Payment for days of rest.
iii. Payment for work done on days of rest.
iv. Wages for the overtime work.
Who may apply to:
i. Employee himself, or
ii. Any legal practitioner,
iii. Registered Trade Union,
iv. Any Inspector, or
v. Any person with the permission of authority.

Other Provisions
 Fixing Hours for Normal Working Day (Section 13)
(A) In regard to any Scheduled Employment the Appropriate Government
may –
1) Fix the number of hours of work which will constitute a normal working day
including intervals.
2) Provide a day of rest in every 7 days and payment of remuneration for such
days.
3) Provide for working on the day of rest at over time rate or more.
(B) For the following classes of Employees the above provisions will apply
subject to the prescribed conditions–
1) Employees engaged in urgent or emergency work.
2) Employees engaged in intermittent work.
3) Employees engaged in work dependent on irregular action of natural forces.

Other Provisions
 Wages in Kind (Section 11)
1) Wages under the Minimum Wages Act have to be paid in cash.
2) However, if there is a custom to pay wages fully or partly in
Kind, the Appropriate Government may authorize the payment
of Minimum Wages either-
a. Fully, or
b. Partly, in Kind.
3) If the Appropriate Government is satisfied, then it may
authorize the supply of essential commodities at concessional
rates.
4) The value of wages in kind and of concessions in respect of
supplies of essential commodities shall be estimated in the
prescribed manner.

Case Law Studies
 Arvind Mills Ltd. V/s K.R. Gadgil
HELD:- The Bombay High Court has observed that “the general purpose of the Act is
to provide that employed persons shall be paid their wages in a particular form
and at regular intervals without any unauthorized deductions”
 D.P. Kelkar V/s Ambadas
HELD:- The definition of wages is not limited to remuneration payable under an
agreement or contract. It applies to all kinds of remuneration, whether arising
from-
• A contract,
• An award,
• A settlement, or
• Under a statute.

Case Law Studies
 Upper India V/s J.C. Mathur
HELD:- The word deduction in Section 15 appears to have been used in a very wide
sense so as to include the ‘entire deficiency’ which the employee alleges to have
been caused in the payment of wages as a result of the withholding of the same
by the employer partially or wholly.
 Gopalan V/s Augmati Chit Fund
HELD:- Statutory bonus of 8 1/3% is payable whether there are profits to the
accounting year or not. After coming into force of the Payment of Bonus Act,
bonus has become an implied term of employment not dependent upon the
profits and therefore comes under the category of remuneration. Viewed in this
light the wages as a general term would include bonus.

The Payment of Gratuity Act, 1972
 Introduction
 Authorities under the Act
 Payment & Provisions
 Nomination
 Case law Studies

Introduction & Preliminary
 Originally gratuity was considered as an amount given freely and could not
be demanded as a matter of right by the employees.
 In many cases gratuity was given as a matter of favor.
 Employees used to pay gratuity as a reward for long, continuous and
meritorious service.
 Various courts recognized the claim for gratuity and awarded gratuity
schemes.
 This custom of payment of gratuity became, in the later days, a matter of
right for the employees.
 With a view to ensure a uniform pattern of payment of gratuity to the
employees throughout the country, the Central Government enacted the
Payment of Gratuity Act.

 Employee [S.2(i)]: means any person:
a. Who is employed for hire or reward,
b. To do any work,
c. Skilled or unskilled,
d. Manual or clerical,
e. In Scheduled Employment,
f. In respect of which minimum wages have been fixed.
a. Value of house accommodation, medical and other facilities, amenities and

 Wages [S.2(s)] means all remuneration (whether by way
a. Any remuneration payable under any award or settlement between the parties or order of
court;
b. Any remuneration to which the person is employed is entitled in respect of overtime work,
or holidays or leave period;
e. Any sum to which the a person is entitled under any scheme which is framed under a law
currently in force.

 Retirement [Section 2(q)]:
It means the termination of service of an employee otherwise than on
superannuation. This definition is framed in the widest sense. Retrenchment is also
termination of service. It implies discharge of surplus labour.
 Superannuation [Section (2)]:
In relation to an employee, it means-
• The attainment by the employee of such age as is fixed in the sontract, or
conditions of service, as the age on the attainment of which the employee shall
vacate the employment.

Authorities Under The Act
 Inspectors [Section 7(A)]
a) The Appropriate Government may appoint as many inspectors as it deems fit.
b) The Appropriate Government may define the area to which the authority of an
inspector shall extend.
c) Every inspector shall be deemed to be a public servant.
 Powers of Inspectors [Section 7(B)]: An inspector may
a) Require an employer to furnish any information.
b) Enter and inspect any premises or place in any factory, shop or establishment for
the purpose of examining any register, record or notice or other documents, in
relation to the employment of any person or the payment of gratuity to the
employees
c) Examine the employer or any person who is present in such premises.

Authorities Under The Act
 Controlling Authority [Section 3]
The Appropriate Government by a notification may appoint any officer to be the
controlling authority who shall be responsible for Administration of this Act.
Different controlling authorities may be appointed for different areas.
 Powers of Controlling Authorities [Section 7(5)]
a) Enforcing the attendance of any person or examining him on oath.
b) Requiring the discovery and production of documents.
c) Receiving evidence on affidavits.
d) Issuing commissions for the examination of witnesses.

Payment & Provisions
 Circumstances under which Gratuity becomes payable to an employee
[Section 4]
a) On termination of employment after he has rendered continuous service of not
less than 5 years, on his superannuation, retirement, resignation, death or
disablement due to accident or disease.
b) In case of death of employee, the gratuity payable to him shall be paid to his
nominee. If there is no nomination then to his legal heirs.
c) If any nominee or heir is a 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 Financial Institution as may be prescribed, until the minor
reaches the age of majority.

 Rate of Gratuity [Section 4(2)]
a) An employee who is eligible for gratuity shall be paid for every completed year
of service or part of it in excess of 6 months, gratuity at the rate of 15 days
wages for each completed year of service.
b) Such gratuity is to be calculated on the basis of the rate of wages last drawn by
the employee.
c) In case of a piece rated employee, the rate of daily wages shall be calculated o
the basis of average of the total wages earned by him for a period of 3
preceding months before the termination of his employment.
d) In case of an employee employed in as seasonal establishment, the rate of
gratuity payable to him shall be 7 days wages for each completed season.
e) In the case of a daily rated employee, he is to be paid gratuity at the rate of daily
wages multiplied by 15 for every year of service.
f) In case of a monthly rates employee, the daily rate of wages is arrived at by
dividing the rate of wages last drawn by 26. This rate is to be multiplied by 15
for deciding the quantum of gratuity payable for a year.

 Maximum Amount of Gratuity [Section 4(3)]
Payable to an employee shall not exceed Rs.3,50,000 (w.e.f. 24.9.97)
 Employment after disablement [Section 4(4)]
In case of an employee employed after disablement, the gratuity shall be calculated
in 2 parts:
a) For the period of employment before disablement and
b) For the period after disablement at the reduced rate.
 Better Gratuity Scheme [Section 4(5)]
a) If the employer has his own gratuity scheme which is better than the scheme
provided under this Act, then the employees shall be entitled to gratuity as per
that scheme.
b) The Appropriate Government has powers to exempt by a notification any
establishment, factory, mine, oil field, plantation, port, railway company or shop
if the employees are gratuity and pensionary benefits under this Act.

 Forfeiture of Gratuity [Section 4(6)]
It gives the circumstances in which the gratuity payable to an employee may be
forfeited either partly or wholly.
1) Partial Forfeiture: The gratuity of an employee whose services are terminated for
any act, willful omission, negligence causing any damage, loss to, or destruction
of property belonging to the employer; only to the extent of damage or loss so
caused.
2) Full Forfeiture: The gratuity payable to an employee can be wholly forfeited:
a) If the services of an employee are terminated for his riotous or disorderly behaviors or
any other act of violence on his part, or
b) If the services are terminated for any act which constitutes an offence involving moral
turpitude; provided, that such an offence is committed by him in the course of his
employment.

 Determination of Gratuity [Section 7]
a) As soon as the gratuity becomes payable, the employer shall determine the
amount of gratuity and give notice in writing to that person to whom the
gratuity is payable.
b) Notice is also given to the controlling authority specifying the amount of
gratuity so determined.
c) Calculation of gratuity is to be done by the employer whether an application has
been made or not.
 Mode of Payment of Gratuity [Sections 7(3),(3-A)]
a) The employer shall arrange to pay the amount of gratuity within 30 days from
the date it becomes payable to the person.
b) If the gratuity is not paid in time the employer shall pay interest at the rate
notified by the Central Government.
c) No interest will be paid if the delay is due to the fault of the employee and the
employer has obtained permission in writing from the controlling authority.

 Dispute as to Gratuity [Section 7(4)]
a) If there is any dispute about-
i. Amount of gratuity payable to an employee.
ii. Admissibility of any claim.
iii. As to the person entitled to gratuity, the employer shall deposit the amount which he
admits is payable with the controlling authority.
b) Where there is a dispute about the above matters the employee can also make
an application to the controlling authority for taking necessary action.
c) The controlling authority, after making the enquiry and giving the amount of
gratuity payable to the employee. Further, as a result of the enquiry if any
additional amount is payable to the employee, he shall direct the employer to
pay the additional amount.
d) The controlling authority shall pay the amount deposited including the
additional amount, if any, to the person entitled.

 Recovery of Gratuity
a) If the employee is not paid gratuity by the employer the employee can make an
application to the controlling authority for the same. The controlling authority, if
satisfied, shall issue a certificate for recovery of the amount to the collector.
b) The collector shall recover the amount as arrears of land revenue.
c) Such arrears are payable to the employee together with compound interest at
such rate specified by the central government.
d) This amount is to be recovered after the date of expiry of the prescribed time.
e) The controlling authority, before issuing a certificate, shall give a reasonable
opportunity for the employer of showing cause against issue of the certificate.
f) The amount of interest payable shall not exceed the amount of gratuity.
g) The interest becomes payable only when the collector issues a Certificate of
Recovery of the dues as a public demand.

Nomination
 Meaning- naming the person or persons, who shall be entitled to the amount of gratuity if
the employee dies before receiving the amount.
 Family [Section 2(h)]: in relation to an employee, shall be deemed to consist of:
1) Male Employees:
a) Himself.
b) His wife.
c) His children (whether married or unmarried)
d) His dependent parents.
e) Dependent parents of his wife.
f) Widow and children of his predeceased son, if any.
2) Female Employees:
a) Herself.
b) Her husband.
c) Her children (whether married or unmarried)
d) Her dependent parents.
e) Dependent parents of her wife.
f) Widow and children of her predeceased son, if any.

Nomination
 Every employee under this Act, is required to make a nomination as per the
following rules:
1) Employee to make nomination: Every employee who has completed service of 1
year shall make a nomination within 30 days after completing 1 year’s service.
2) More than 1 nominee: An employee can, in his nomination, distribute the
amount of gratuity between more than one nominee.
3) Family members to be nominated: If the employee has a family at the time of
nomination, the nomination can be made favoring member or members of his
family.
4) No Family: If the employee does not have a family, then nomination can be
made in favor of any person.

Nomination
5) Family after nomination: If the employee acquires a family afterwards, such
nomination becomes invalid. The employee shall make a fresh nomination within
90 days in favor of family members.
6) Modification of nomination: Can be done by the employee at anytime, after
giving a notice to the employer.
7) Death of Nominee: If the nominee does before the employee, then employee
shall make a fresh nomination.
8) Safe custody of nomination: Every:
a) Nomination
b) Fresh nomination
c) Alteration of nomination, as the case may be, shall be sent by the employee to the
employer, who shall keep the same in his safe custody. Further, it shall take effect from
the date of receipt by the employer.

Case Law Studies
 Indian Hume Pipe Co. Ltd. V/s Workmen
HELD:- The general principle underlying gratuity schemes is that
by faithful service over a long period the employee is entitled
to claim a certain amount as retirement benefit.
 Delhi Cloth and General Mills Ltd. V/s Workmen
HELD:- The object of providing a gratuity scheme is to provide a
retiring benefit to the workmen who have rendered long and
unblemished service to the employer and thereby
contributed to the prosperity of the employer.

Case Law Studies
 DBR Mills Ltd. V/s Appellate Authority
HELD:- Cessation of work by the employee on these days cannot be said to be due to
any fault of the employee. Therefore, he would be deemed in continuous service if
he has been actually employed by an employer during the 12 months, immediately
preceding the year for not less than 240 days in an establishment.
 Patel Hiralal Ramlal & Co. Vs. Smt. Chandbib Pirubhai
HELD:- The workmen carrying raw materials from the employer’s premises to their
home and rolling up bidis at their home for manufacturer are employees, and as
such are entitled to claim and payment of gratuity.

industrial law
TOPICS
 FACTORY ACT 1948
 WORKMEN COMPENSATION ACT 1923
 EMPLOYEE STATE INSURANCE ACT 1948
 MINIMUM WAGES ACT 1948
 EMPLOYEE PROVIDENT FUND ACT 1952
 INDUSTRIAL DISPUTE ACT 1947
 PAYMENT OF GRATUITY ACT 1972

Introduction
 The Factories Act, is a social legislation which has been enacted for occupational safety, health and
welfare of workers at work places.
 Applicability:- It applies to factories covered under the Factories Act, 1948.
 Background:-
 In India the first Factories Act was passed in 1881. This Act was basically designed to
protect children and to provide few measures for health and safety of the workers. This
law was applicable to only those factories, which employed 100 or more workers.
 In 1891 another factories Act was passed which extended to the factories employing 50
or more workers.
 On the basis of the recommendations of the Factory Labour Commission, more
comprehensive Law was introduced in 1911, which got amended in 1923, 1926 and
1931
 With the amendments made by Royal Commission of Labour (1931), Comprehensive
Factory Act, 1934 was introduced.
 Following recommendations of the Rage Committee, the Govt. of India enacted
Factories Act, 1948

Definitions
 The term “Factory” under Section 2(m) of
the act means :
 Any premises in which 10 or more workers
are employed and are engaged in
manufacturing process being carried out
with the aid of power or
 Any premises in which 20 or more workers
are employed in manufacturing process
being carried out without the aid of power

SOME IMPORTANT TERMS TO UNDERSTAND
FACTORY
 The term “Manufacturing Process” under Section 2(K) of the act means :
Making, altering, repairing, ornamenting, finishing, packing, oiling, washing,
cleaning, breaking up, demolishing or otherwise treating or adapting any article or
substance with a view to its use, sale, transport, delivery or disposal; or
Pumping oil, water, sewage or any other substance; or
Generating, transforming or transmitting power; or
Composing types for printing, by letter press, lithography or other similar
processes; or
Constructing, reconstructing, repairing, refitting or breaking up ships or vessels; or
Preserving or storing any article in cold storage
 The term “Power” under Section 2(g) of the act means not only electrical energy
but also any other form of energy, which is mechanically transmitted, but is not
generated by human or animal energy
 The term “Worker” under Section 2(I) of the act means a person employed (Directly or
through any agency including a contractor), with or without the knowledge of principal
employer, whether for remuneration or not in any manufacturing or not in manufacturing
process, but does not include any member of the armed forces of the Union

prelimiary
 It extends to the whole of India
 It came into force on the 1st day of April, 1949
Interpretation
 adult- 18 & above
 adolescent-15 & above and Below 18
 calendar year -the period of twelve months beginning
with the first day of January in any year
 child – below 15
 young person - either a child or an adolescent
 day - period of twenty-four hours beginning at midnight

occupier
 Occupier[sec.2(n)]:- the person, who has ultimate
control over the affairs of the factory.
 A firm or other association of individuals - any one of the
individual partners or members.
 A company - the directors.
 A factory owned or controlled by the Central Government or
any State Government, or any local authority - the person or
persons appointed to manage the affairs of the factory by the
Central Government, the State Government or the local
authority, as the case may be.

 Every occupier shall ensure, so far as is reasonably practicable, the health, safety and
welfare of all workers while they are at work in the factory.
 the provision and maintenance of plant and systems of work in the factory that are safe
and without risks to health
 ensuring safety and absence of risks to health in connection with the use, handling,
storage and transport of articles and substances
 information, instruction, training and supervisions as are necessary to ensure the
health and safety of all workers at work
 maintenance work place condition that is safe and without risks to health
 the provision, maintenance or monitoring of such working environment in the factory
for the workers that is safe, without risks to health and adequate as regards facilities and
arrangements for their welfare at work.
GENERAL DUTIES OF THE OCCUPIER

THE INSPECTING STAFF
Certifying Surgeons
Inspectors:- The State Government may, by
notification in the Official Gazette, appoint as many Additional
Chief Inspectors, Joint Chief Inspectors and Deputy Chief
Inspectors and as many other officers as it thinks fit to assist
the Chief Inspector and to exercise such of the powers of the
Chief Inspector as may be specified in such notification.

Cleanliness
• kept clean and free from effluvial
arising from any drain, privy or
other nuisance, and in particular
• floor of every workroom shall be
cleaned at least 1 in every week by
washing, using disinfectant where
necessary, or by some other effective
method
• floor is liable to become wet in the
course of any manufacturing process to
such extent as is capable of being
drained, effective means of drainage
shall be provided and maintained
HEALTH

• Once in 5 years – repaint or re varnish
• Once in 3 years –repaint with washable water paint
and washed at least once in every period of six months
• Once in 14 months – clean where they are painted or
varnished or where they have smooth impervious
surfaces
• Once in 5 years – repaint or varnish all doors and
window-frames and other wooden or metallic
framework and shutters
Disposal of wastes and effluents
• Effective arrangements shall be made in every
factory for the treatment of wastes and effluents
due to the manufacturing process carried on
• there in, so as to render them innocuous
• and for their disposal.

 Ventilation and temperature
 Dust and fume
 Artificial humidification
 the State Government may make rules
prescribing standards of humidification
 regulating the methods used for artificially increasing the
humidity of the air
 directing prescribed tests for determining the humidity of
the air to be correctly carried out and recorded
 prescribing methods to be adopted for securing adequate
ventilation and cooling of the air in the workrooms.
 the water used for the purpose shall be taken from a public
supply, or other source of drinking water, or shall be
effectively purified before it is so used.

 Overcrowding
• Before commencement of this Act at least 9.9 cubic
metres
• after the commencement of this Act at least 14.2 cubic
metres of space for every worker employed
 Lighting
• In every part of a factory where workers are working or
passing, there shall be provided and maintained sufficient
and suitable lighting, natural or artificial, or both.
• windows should kept clean on both the inner and outer
surfaces
• the prevention of glare, either directly from a source of
light or by reflection from a smooth or polished surface
• the formation of shadows to such an extent as to cause eye-
strain or the risk of accident to any worker.

Drinking water
• effective arrangements shall be made to provide and maintain
at suitable points conveniently situated for all workers
employed.
• legibly marked "drinking water" in a language understood by a
majority of the workers employed in the factory.
• no such points shall be situated within 6m of any washing
place, urinal, latrine, spittoon, open drain or any other source
of contamination unless a shorter distance is approved in
writing by the Chief Inspector.
• >250 workers - provisions shall be made for cooling drinking
water during hot weather by effective means

 The State Government may prescribe the no : of latrines and urinals to
be provided in any factory in proportion to the number of male and
female workers ordinarily employed therein, and provide for such
further matters in respect of sanitation in factories
Spittoons
 sufficient number of spittoons in convenient place.
 and they shall be maintained in a clean and hygienic
condition.
 State Government makes the rules
• a notice containing this provision and the penalty for its violation
shall be prominently displayed at suitable places in the premises.
Latrines and urinals
sufficient latrine and urinal accommodation
of prescribed types shall be provided conveniently
situated and accessible to workers at all times
while they are at the factory.

 Fencing of machinery
• safe to every person employed
in the factory
 Work on or near machinery in
motion
• specially trained adult male
worker wearing tight fitting clothing
• No woman or young person shall be allowed to clean, lubricate or adjust any
part of a prime-mover
 Employment of young persons on dangerous machines
• Young person -has received sufficient training in work at the machine, or is
under adequate supervision by a person who has a thorough knowledge and
experience of the machine.
SAFETY

 suitable striking gear or other efficient mechanical appliance
shall be provided and maintained and used to move driving
belts to and from fast and loose pulleys which form part of the
transmission machinery, and such gear or appliances shall be
so constructed, placed and maintained so as to prevent the belt
from creeping back on to the first pulley
 driving belts when not in use shall not be allowed to rest or
ride upon shafting in motion.
 In every factory suitable devices for cutting off power in
emergencies from running machinery shall be provided and
maintained in every workroom
 When a device, which can inadvertently shift from "off" to
"on" position, is provided in a factory- to cut off power,
arrangements shall be provided for locking the device in safe
position to prevent accidental starting of the transmission
machinery or other machines to which the device it fitted.
 Striking gear and devices for cutting off
power

Casing of new machinery
every set screw, bolt or key on any revolving shaft, spindle, wheel or
pinion shall be so sunk, encased or otherwise effectively guarded as to
prevent danger;
all spur, worm and other toothed or friction gearing which does not
require frequent adjustment while in motion shall be completely
encased, unless it is so situated as to be as safe as it would be if it were
completely encased.

 Prohibition of employment of women
and children near cotton-openers
• No woman or child shall be employed in any part of a factory for
pressing cotton in which a cotton-opener is at work
• Provided that if the feed-end of a cotton-opener is in a room separated
from the delivery end by a partition extending to the roof or to such
height as the Inspector may in any particular case specify in writing,
women and children may be employed on the side of the partition
where the feed-end is situated
 Hoist and lifts
• In every factory-
• every hoist and lift shall be of good mechanical
construction, sound material and adequate strength

• properly maintained and at least 1 in every period of 6
months examined by competent person
• register shall be kept containing the prescribed
particulars of every such examination
• the hoist or lift and every such enclosure shall be so
constructed as to prevent any person or thing from being
trapped between any part of the hoist or lift and any fixed
structure or moving part
• the maximum safe working load shall be plainly marked
on every hoist or lift, and no load greater than such load shall
be carried
• the cage of every hoist or lift used for carrying persons shall
be fitted with a gate on each side from which access is
afforded to a landing

 shall be fitted with inter-locking or other efficient device to secure that
the gate cannot be opened except when the cage is at the landing and
that the cage cannot be moved unless the gate is closed.
 where the cage is supported by rope or chain, there shall be at least
two ropes or chains separately connected with the cage and balance
weight, and each rope or chain with its attachments shall be capable of
carrying the whole weight of the cage together with its maximum load
 efficient devices shall be provided and maintained capable of
supporting the cage together with its maximum load in the event of
breakage of the ropes, chains or attachments
Lifting machines, chains, ropes and lifting tackles
 all parts, including the working gear, whether fixed
or movable, of every lifting machine and every chain,
rope or lifting tackle shall be-
 of good construction, sound material and adequate
strength and free from defects.

 properly maintained.
 thoroughly examined by a competent person at least once in
every period of 12 months, or at such intervals as the Chief
Inspector may specify in writing, and a register shall be kept
containing the prescribed particulars of every such
examination.
 no lifting machine and no chain, rope or lifting tackle shall,
except for the purpose of test, be loaded beyond the safe
working load which shall be plainly marked there on together
with an identification mark and duly entered in the prescribed
register.
 while any person is employed or working on or near the wheel
track of a travelling crane in any place where he would be
liable to be struck by the crane, effective measures shall be
taken to ensure that the crane does not approach within 6
metres of that place.

 Revolving machinery
• maximum safe working peripheral speed of every
grindstone or abrasive wheel, the speed of the shaft or spindle
upon which the wheel is mounted, and the diameter of the
pulley upon such shaft or spindle necessary to secure such safe
working peripheral speed.
• The speeds indicated in notices shall not be exceeded.
 Pressure plant
• If in any factory, any plant or machinery is operated at a
pressure above atmospheric pressure, effective measures shall
be taken to ensure that the safe working pressure of such
plant or machinery or part is not exceeded.

 Floors, stairs and means of
access
• shall be of sound construction, and
properly maintained and shall be kept free
from obstructions and substances likely
to cause persons to slip and where it is
necessary to ensure safety, steps, stairs,
passages and gangways shall be provided
with substantial handrails
• when any person has to work at a height
from where he is likely to fall, provision
shall be made, so far as is reasonably
practicable, by fencing or otherwise, to
ensure the safety of the person so working.

 Pits, sumps, openings in floors, etc
 In every factory every fixed vessel, sump, tank, pit or opening in
the ground or in a floor which, by reason of its depth, situation,
construction or contents, is or may be a source of danger, shall be
either securely covered or securely fenced.
 Excessive weights
 No person shall be employed in any factory to lift, carry or move
any load so heavy as to be likely to cause him an injury.
 The State Government may make rules prescribing the maximum
weights which may be lifted, carried or moved by adult.
• Men, adult women, adolescents and children
employed in factories or in any class or
description of factories or in
carrying on in any specified process.

 Protection of eyes.
 risk of injury to the eyes from particles or
 fragments thrown off in the course of the process, or
 risk to the eyes by reason of exposure to excessive light, the State
Government may by rules require that effective screens or suitable
goggles shall be provided for the protection of persons employed
on, or in the immediate vicinity of, the process.
 Precautions against dangerous fumes, gases, etc.
 No person shall be required or allowed to enter any chamber, tank,
vat, pit, pipe, flue or other confined space in any factory in which
any gas, fume, vapour or dust is likely to be present to such an
extent as to involve risk to persons being overcome thereby, unless
it is provided with a manhole of adequate size

 No person shall be required or allowed to enter
any confined space until all practicable
measures have been taken to remove any gas,
fume, vapour or dust, which may be present so as
to bring its level within the permissible limits and
to prevent any ingress of such gas, fume, vapour
or dust and unless
 a certificate in writing has been given by a
competent person, based on a test carried out by
himself that the space is reasonably free from
dangerous gas, fume, vapour or dust
 such person is wearing suitable breathing
apparatus and a belt securely attached to a rope
the free end of which is held by a person outside
the confined space.
 PRECAUTIONS AGAINST DANGEROUS FUMES

 Precautions regarding the use of portable electric light.
 In any factory
 no portable electric light or any other electric appliance of voltage exceeding
24V shall be permitted for use inside any chamber, tank, vat, pit, pipe, flue or
other confined space unless adequate safety devices are provided
 if any inflammable gas, fume or dust is likely to be present in such chambers
tank, vat, pipe, flue or other confined space, no lamp or light other than that
of flame-proof construction shall be permitted to be used therein.
 Explosive or inflammable dust, gas, etc
 Where in any factory any manufacturing process produces dust, gas, fume or
vapour of such character and to such extent as to be likely to explode on
ignition, all practicable measures shall be taken to prevent any such
explosion by
 effective enclosure of the plant or machinery used in the process
 removal or prevention of the accumulation of such dust, gas,
fume or vapour.
 exclusion or effective enclosure of all possible sources of ignition.

 Precautions in case of fire
 In every factory, all practicable measures shall be taken to prevent
outbreak of fire and its spread, both internally and externally
 to provide and maintain Safe means of escape for all persons in the
event of a fire
 the necessary equipment and facilities for extinguishing fire ensure
that in every factory all the workers are familiar with the means of
escape in case of fire and have been adequately trained in the routine
to be following in such cases
Power to require specifications of defective parts or tests of stability
 If it appears to the Inspector that any building ,part of a building , any
part of the ways, machinery or plant in a factory be dangerous to
human life or safety, he may serve on the occupier or manager or both
of the factory an order in writing requiring him before a specified date

 to furnish such drawings, specifications and other particulars
as may be necessary to determine whether such buildings, ways,
machinery or plant can be used with safety,
 to carry out such tests in such manner as may be specified in
the order, and to inform the Inspector of the results thereof.
 Safety of buildings and machinery
 If it appears to the Inspector that any building or part of a
building or any part of the ways, machinery or plant in a factory
is in such a condition that it is dangerous to human life or
safety, he may serve on the occupier or manager or both of the
factory an order in writing specifying the measures, which in
his opinion should be adopted and requiring them to be carried
out before a specified date.

 prohibiting its use until it has been properly repaired or altered.
Maintenance of buildings.
 If it appears to the Inspector that any building or part of a building in a
factory is in such a state of disrepair as is likely to lead to conditions
detrimental to the health and welfare of the workers, he may serve on the
occupier or manager or both of the factory an order in writing specifying the
measures which in his opinion should be taken and requiring the same to
be carried out before such date as is specified in the order.
Safety Officers
 In every factory-
 >=1000 ordinarily employed,
 wherein, in the opinion of the State Government,
any manufacturing process or operation is carried on, which process
or operation involves any risk of bodily injury, poisoning or disease or any
other hazard to health, to the person employed in the factory
 the occupier shall, if so required by the State Government by notification in
Official Gazette, employ such number of Safety Officers as may be specified
in that notification.

PROVISION RELATING TO
HAZARDOUS PROCESS
 Constitution of Site Appraisal Committees
The State Government may, for purposes of advising it to consider
applications for grant of permission for the initial location of a factory
involving a hazardous process or for the expansion of any such factory,
appoint a Site Appraisal Committee consisting of-
the Chief Inspector of the State who shall be its Chairman
a representative
of the Central Board for the Prevention and Control of Water Pollution
appointed by the Central Government
of the Central Board for the Prevention and Control of Air Pollution
 a representative of the State Board appointed under section 4 of the
water
 the State Board for the Prevention and Control of Air Pollution

 the Department of Environment in the State
 the Meteorological Department of the Government of India
 an expert in the field of occupational health
 a representative of the Town Planning Department of the State
Government
 The Site Appraisal Committee shall examine an application for the
establishment of a factory involving hazardous process and make its
recommendation to the State Government within a period of 90days of
the receipt of such application in the prescribed form.
 The Site Appraisal Committee shall have power to call for any
information from the person making an application for the establishment
or expansion of a factory involving a hazardous process.
Emergency standards
 Where the Central Government is satisfied that no standards of safety
have been prescribed in respect of a hazardous process or class of
hazardous processes, or where the standards so prescribed are
inadequate, it may direct the Director-General of Factory Advice
Service and Labour Institutes or any Institution specialised in matters
relating to standards of safety in hazardous processes, to lay down
emergency standards for enforcement of suitable standards in respect of
such hazardous processes.

 Permissible limits of exposure of chemical and toxic
substances
 The maximum permissible threshold limits of exposure of chemical
and toxic substances in manufacturing processes (whether
hazardous or otherwise) in any factory shall be of the value
indicated in the Second Schedule.
Workers' participation in safety management.
 set up a Safety Committee consisting of equal no: of
representatives of workers and management .
 Where the workers employed in any factory engaged in a hazardous
process have reasonable apprehension that there is a likelihood of
imminent danger to their lives or health due to any accident, they
may, bring the same to the notice of the occupier, agent, manager or
any other person who is in-charge of the factory or the process
concerned directly or through their representatives in the Safety
Committee and simultaneously bring the same to the notice of the
Inspector.

 Where in any factory the plant or machinery used in a process such
as is referred - all practicable measures shall be taken to restrict
the spread and effects of the explosion by the provision in the
plant or machinery of chokes, baffles, vents or other effective
appliances.
 Where any part of the plant or machinery in a factory contains any
explosive or inflammable gas or vapour under pressure greater than
atmospheric pressure, that part shall not be opened except in
accordance with the following provisions, namely:-
 before any such fastening as aforesaid is removed, all practicable
measures shall be taken to reduce the pressure of the gas or
vapour in the part or pipe to a atmospheric pressure
 where any such fastening as aforesaid has been loosened or
removed effective measures shall be taken to prevent any explosive
or inflammable gas or vapour from entering the part or pipe until
the fastening has been secured, or, as the case may be, securely
replaced.

 gives the right to workers of a factory in which a
hazardous process takes place to bring to the notice
of the occupier, agent, manager or any other person
who is in-charge of the factory or the Inspector of the
area
 enquire immediately on receipt of the information and
take remedial action.

 washing facilities
• adequate and suitable facilities for washing shall be provided
and maintained for use of the workers
•separate and adequately screened facilities shall be provided for
the use of male and female workers
 such facilities shall be conveniently accessible and shall be kept
clean.
 Facilities for storing and drying clothing
• the provision therein of suitable place for keeping clothing not
worn during working hours and for the drying of wet clothing.
Facilities for sitting
• the workers in any factory engaged in a particular manufacturing
process or working in a particular room, are able to do their work
efficiently in a sitting position, he may, by order in writing,
require the occupier of the factory to provide before a specified
date such seating arrangements as may be practicable for all
workers so engaged or working.
WELFARE

 CANTEENS
• >250 workers are ordinarily employed, a
canteen or canteens shall be provided and
maintained by the occupier for the use of
the workers.
• Without prejudice in the generality of the foregoing
power such rules may provide for
• the date by which such canteen shall be provided
• the standard in respect of construction, accommodation,
furniture and other equipment of the canteen
• the foodstuffs to be served therein and the charges which
may be made therefore
• the constitution of a managing committee for the canteen
and representation of the workers in the management of the
canteen
• the items of expenditure in the running of the canteen which
are not to be taken into account in fixing the cost of
foodstuffs and which shall be borne by the employer

 Shelters, rest-rooms and
lunch-rooms
• >150 workers -suitable shelters or rest-rooms & a
suitable lunch-room, with provision for drinking
water.
• If a lunch-room exists no worker shall eat any food
in the work-room.
• The shelters or rest-room or lunch-room shall be
sufficiently lighted ,ventilated and maintained in a
cool and clean condition.
 Creches
• >30 women workers.
• children under the age of 6 years.
• Such rooms shall provide adequate
accommodation, shall be adequately lighted and
ventilated, shall be maintained in a clean and
sanitary condition and shall be under the charge of
women trained in the care of children and infants.

 The State Government may make rules
• prescribing the location and the standards in respect of construction,
accommodation, furniture and other equipment of rooms to be provided,
• requiring the provision in factories to which the section applies, of additional facilities
for the care of children belonging to women workers, including suitable provision of
facilities for washing and changing their clothing
• requiring the provision in any factory of free milk or refreshment or both for such
children
• requiring that facilities shall be given in any factory for the mothers of such children to
feed them at the necessary intervals
 Welfare Officers
• In every factory wherein >=500 workers are ordinarily employed the occupier shall
employ in the factory such number of welfare officers as may be prescribed.

Working hours of adults
1. Weekly hours
 adult worker shall not >48h in any
week
2. Daily hours.
 Not work >9h in any day.
3. Intervals for rest
work for not >5 h before he has had an
interval for rest of at least 1/2 hour
total no : of hours worked by a worker
without an interval not > 6h
 WORKING HOURS.

Spread over
• spread over not > 10& 1/2 hours in any day (inclusive of his intervals for rest )

 Extra wages for overtime
 Where a worker works in a factory for >9 hours in any day or
for >48 hours in any week, he shall, in respect of overtime work,
be entitled to wages at the rate of twice his ordinary rate of
wages.
 Restriction on double employment
 No adult worker shall be required or allowed to work in any
factory on any day on which he has already been working in any
other factory, save in such circumstances as may be prescribed.
Register of adult workers
 maintain a register of adult workers- the name ,the nature of
his work ,the group, shift, & the relay

HOLIDAYS
1. Weekly holidays
No adult work are allowed to work in a factory on
first day of the week unless
 a holiday for whole day on one of 3 days
immediately before or after the said day
2. Compensatory holidays
within the month or within the months immediately
following that 2 month

Industrial law

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