AN EASY MANUAL TO LEARN LABOUR LEGISLATION PREPARED WITH RESPECT TO SYLLABUS PRESCRIBED IN UNIVERSITY OF MADRAS

Compiled by R Jagatheesh

SYLLABUS
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Unit I Labour Legislation: History of labour legislations in India; Labour in the Indian Constitution; Industrial jurisprudence; industrial Law as distinguished from common law; International Labour Code (ILC), Judicial set up and Administration of Industrial and Labour JudiciaryAdministration set up and functions of Factory Inspectorate Unit II Legislations Pertaining to Working Conditions: Factories Act, 1948, Industrial Employment (Standing Orders) Act, 1946, Apprentices Act, 1961, Contract Labour (Regulations and Abolition) Act, 1970, Plantations Labour Act, 1951. Unit III Shops and Establishment Legislation: Tamil Nadu Shops and Establishments Act, 1947, The Tamil Nadu Catering Establishment Act, 1958, The Tamil Nadu Industrial Establishment (conferment of permanent Status to workmen) Act, 1981, The Tamil Nadu Payment of Subsistence Allowance act, 1981, Tamil Nadu Industrial Establishment (National and Festival Holidays) Act,1951- Tamil Nadu Labour Welfare Fund Act, 1972. Unit IV Wage Legislation and Social Security Legislations: Payment of Wages Act, 1936 Minimum Wages Act, 1948 Payment of bonus Act, 1965 Workmens Compensation Act, 1923

Employees State Insurance Act, 1948 Employee Provident Fund and Miscellaneous Provisions Act, 195 Maternity Benefit Act, 1961 Payment of Gratuity Act, 1972 Unit V Industrial Relations Legislations Trade Unions Act, 1926 Industrial Disputes Act, 1947

CONTENT

UNIT I 1.1 1.2 1.3 History of Labour Legislation in India Labour Law in Indian constitution

UNIT I

HISTORY OF LABOUR LEGISLATION IN INDIA Law is necessary for maintaining peaceful environment for the growth of the industry. Labour legislation in India has developed with the growth of the industry. In the eighteenth century India was not only a great agricultural country but a great manufacturing country too. Asian and European markets were mainly fed by the looms supplied by India, but the British Government in India as a mater of policy discouraged the Indian manufacturers in order to encourage the rising manufacturers of England. Their policy was to make India subservient to the industries of Great Britain and to make Indian people grow only raw materials. The British oppression in India continued for a considerable time which led to the growth of Indian nationalism and to a vigorous renaissance. Nationalism has an obvious economic aspect with in our country which was reflected in the urge for economic reforms and for industrialization. In the twentieth century the national movement took a new turn and there was a common demand for the Indian goods. A non co-operation movement which is known as The Swadeshi movement was started, which urged the people to use goods made in India and to boycott foreign goods. The non-co-operation movement synchronized with periods of economic crisis gave impetus to industrialization. Not only that , growth of Indian private sector owes much to these popular movements. No doubt, the Indian Economist drew their inspiration from British classical Economists but they outgrew those ideas. Like British Economists, Indian Economists not only advocated that the trade and commerce should be free but they laid emphasis on the free trade of local goods. An attempt was made to put forward a theory of economic development and planning suited to conditions of our country. After thirties, the planning was accepted by the national movement as the economic ideology. Thus, planned industrialization became our main goal. In India, the plantation industry in Assam was the first to attract legislative control. The method of recruitment of workers in this industry was full of hardships. Workers were employed through professional recruiters. Workers were not allowed by the planters to leave the tea gardens. A number of Acts were passed from 1863 onwards to regulate the recruitments. These legislations protected the interests of the employers more than safeguarding the interests of the workers. The Factories Act was passed in 1934 and the

Mines Act in 1923. The Workmen's Compensation Act 1923 was passed to protect the interest of the workers. The following Acts have been enacted to promote the conditions of labour and regulate the relation between employer and employee keeping in view the development of industry and national economy:-

INTRODUCTION: Labour legislations are those laws, which are primarily concerned with labour. Labour is the body of law, which deals with Employment & Non-employment, Wages, Working conditions, Industrial relations, Social security and Labour welfare of industrially employment. DEFINITION: Labour legislation deals with the group of legislations or acts relating to Employment, Non-employment aspects, Wages, Working conditions, Industrial relations, Social security and Labour welfare of workers working in the industries ORIGIN & GROWTH OF LL: Origin & Growth of LL may be ascribed to the development of organized industry where a large number of workers including women and children are employed under conditions which tend to be determined to the health, safety and welfare and against which unable to protect themselves. OBJECTIVES OF LL: To improve the services of the industrial labour, in order to provide basic amenities of life To bring about industrial peace to accelerate productivity and increase the economic prosperity of the country and to improve the condition of labour NEED FOR LL: 1. In order to protect labour against long hours of work, unhygienic conditions of work, low wages and exploitation, LL are needed.

2. In order to make provisions for the workers who are expressed to risk in factories and mines and other establishment with regards to the health, safety and welfare, LL are needed. 3. In order to increase the bargaining power of labour, LL is necessary to encourage the formation of Trade Union. 4. In order to avoid industrial disputes which lead to strikes and lock outs, LL is needed. 5. To protect children and women to work at odd hours and in hazardous process, LL is necessary. 6. The laws for providing compensation to workmen who died or injured during and in the course of employment are also needed. 7. LL advances the interest of working people and helps in the development of national economy on a sound and self-reliant basis. GROWTH OF LABOUR LEGISLATION IN INDIA: 1. Emergence of LL with the growth of industries 2. The British oppression in India led to the growth of Indian nationalism and industrialization 3. The plantation industry in Assam was the first to attack legislative council. 4. The recruitment of workers in plantations is very difficult. The Factories Act 1881, The Mines Act 1901 gave importance to employers interest. The Workmen compensation Act (Employers compensation Act amendment) 1923 protected the interest of the workers. 5. LL has been enacted to promote conditions of labour to develop industry as well as national economy. Since independence the government and the employers fully understood the labour psychology and change in the attitude and outlook to secure industrial peace and harmony. ROLE OF LABOUT LEGISLATION IN INDIAN CONSTITUTION: FUNDAMENTAL RIGHTS AND DIRECTIVE PRINCIPLES OF STATE POLICY: In part III and IV of the Indian constitution highlights the importance in directing and influencing LL in the country and host of fundamental rights under part III Article-14: Equality before law 8

Article-15: Prohibition of discrimination on grounds of religion, race, caste, sex, and place of birth Article-16: Equality of opportunity in matter of public employment Article-17: Abolition of untouchables Article-19: Protection of fundamental freedom Article-20: Protection of life and personal liberty Article-21A: Education for children Article-23: Prohibition of traffic in human beings and forced labour Article-24: Prohibition of employment of children of children in factories, mines, etc. Article-32: Remedies for enforcing, these rights conferred by this Part III Any individual can approach to Supreme Court directly under Article 19 and Article 32, all the other acts to be enforced only to the High Courts. The fundamental rights are enforceable in law courts and create justifiable rights in individual DIRECTIVE PRINCIPLE OF STATE POLICY UNDER PART IV: The Directive principles of state policy lay down guiding principles which states ought to follow both in framing laws and enforcing them. They confer no legal rights and create no legal remedies, but still they provide a good guide to the state in the governance of the country. Article-38: State to secure social order for promotion of welfare of the people Article-39: Certain principles of policy to be followed by the state with regard to democratic socialism Article-39A: Equal justice and free legal aid Article-41: Right to work, education and public assistance in certain cases. Article-42: Provision for just and human conditions of work and maternity relief Article-43: Living wage for workers Article-43A: Participation of workers in management of industries Article-45: Provision for free and compulsory education for children Article-46: Promotional of educational and economic interest of SC/ST and weaker sessions Article-47: Duty of the state to raise the level of nutrition and the standard of living and to improve public health Aricle-48: Organization of agriculture and animal husbandry

The Indian constitution incorporates the concept of social justice as one of the fundamental objects of state policy. The concept of industrial law is based on social justice and social equity, remove the service conditions of the law and promote industrial peace and hormone. PRINCIPLES OF LABOUR LEGISLATION: 1. Principles of Social Justices: Workmen compensation act 1923, Minimum wages act 1948 are attempts at securing social justices to the workers. Provision of Factories act 1948, social justice is the signature tune of the constitutions of India and this provision is for preventing employees from injustices 2. Principles of social equity: With the change of circumstance and ideas there may be a need for change in the law. This power of changing the law is taken by the government making provision for rule making powers in the acts in regard to certain specified matters. The rules may be modified or amended by the government to suit the changed situation as modified situation. Such legislation is based on the principle of social equity 3. Principle of International uniformity: Another important principle base for the LL is the principle of International uniformity. There is uniformity in labour legislation at international which is governed by ILO. ILO (INTERNATIONAL LABOUR ORGANIZATION) The International Labour Organization (ILO) is devoted to advancing opportunities for women and men to obtain decent and productive work in conditions of freedom, equity, security and human dignity. Its main aims are to promote rights at work, encourage decent employment opportunities, enhance social protection and strengthen dialogue in handling work-related issues. In promoting social justice and internationally recognized human and labour rights, the organization continues to pursue its founding mission that labour peace is essential to prosperity. Today, the ILO helps advance the creation of decent jobs and the kinds of

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economic and working conditions that give working people and business people a stake in lasting peace, prosperity and progress. Origins and history The ILO was founded in 1919, in the wake of a destructive war, to pursue a vision based on the premise that universal, lasting peace can be established only if it is based upon decent treatment of working people. ILO Head Quarters located Geneva in Switzerland. The ILO became the first specialized agency of the UN in 1946. ILO's vision of decent work Work is central to people's well-being. In addition to providing income, work can pave the way for broader social and economic advancement, strengthening individuals, their families and communities. Such progress, however, hinges on work that is decent. Decent work sums up the aspirations of people in their working lives. Tripartism and social dialogue The ILO is the only 'tripartite' United Nations agency in that it brings together representatives of governments, employers and workers to jointly shape policies and programmes. This unique arrangement gives the ILO an edge in incorporating 'real world' knowledge about employment and work. International labour standards The ILO is the global body responsible for drawing up and overseeing international labour standards. Working with its Member States, the ILO seeks to ensure that labour standards are respected in practice as well as principle. Working out of Poverty: Poverty remains deep and widespread across the developing world and some transition countries, with an estimated 2 billion people in the world today live on the equivalent of less than USD 2 per day. In the view of the ILO, the main route out of poverty is work.

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4. Principle of National economic: Labour legislation has been enacted to promote conditions of labour to develop industry as well as national economy. Since independence the government and the employers fully understood the labour psychology and change in the attitude and outlook only to secure industrial peace and harmony The Employers' Federation of India The Employers' Federation of India (EFI) was established in 1933, as an association of autonomous organizations of industry and was set up with the purpose of protecting, promoting and championing the interests of employers mainly in the area of human resources, industrial relations, labour problems and cognate matters. Apart from relentlessly championing the cause of the employers in various for a nationally and internationally, over the years, EFI has kept pace with the changing business scenario and has provided need-based services to the employers in India. Employers' Federation of India plays a special role as an apex body of employers' organizations and industries on matters concerning labour, human resource management, industrial relations and other related issues. CLASSFICATION OF VARIOUS LABOUR LAWS: There are over 445 legislations on labour from the central government and the number of legislations enacted by the State government Labour Laws can be classified in to the following 8 categories: i) ii) iii) iv) v) vi) vii) viii) Laws related to Industrial Relations Law related to Wages Laws related to Specific Industries Laws related to Equality and Empowerment of Women Laws related to Deprived and Disadvantaged sections of the Society Laws related to Social Security Laws related to Employment & Training Others

Laws related to Industrial Relations: The Trade Union Act, 1926 The Industrial Employment (Standing Orders) Act, 1946 12

 The Industrial Disputes Act, 1947 Laws related to Wages The Payment of Wages Act, 1936 The Minimum Wages Act, 1948 The Working Journalist (Conditions of service) and Miscellaneous Provisions Rules, 1957 The Payment of Bonus Act, 1965 Laws related to specific Industries The Factories Act, 1948 The Dock Workers (Regulation of Employment) Act, 1948 The Plantation Labour Act, 1951 The Mines Act, 1952 The Working Journalists and other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955 The Merchant Shipping Act, 1958 The Motor Transport Workers Act, 1961 The Beedi & Cigar Workers (Conditions of employment) Act, 1966 The Contract Labour (Regulation & Abolition) Act, 1970 The Sales Promotion Employees (conditions of Service) Act, 1976 The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Services) Act, 1979 The Shops and Establishment Act The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 The Cine Workers Welfare Fund Act, 1981 The Dock workers (Safety, Health & Welfare) Act, 1986 The Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996 The Dock Workers (Regulation of Employment) (inapplicability to major Ports) Act, 1997 The Mica Mines Labour welfare Fund Act, 1946 The Limestone & Dolomite Mines Labour Welfare fund Act, 1972 13

 The Beedi Workers Welfare Fund Act, 1976 The Beedi Workers Welfare Cess Act, 1976 The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Cess Act, 1976 The Cine Workers Welfare Cess Act, 1981 The Employment of Manual Scavengers and Constructions of Dry latrines Prohibition Act, 1993 The Coal Mines (Conservation and Development) Act, 1974 Laws related to Equality and Empowerment of women: The Maternity Benefit Act, 1961 The Equal Remuneration Act, 1976 Laws related to deprived and Disadvantage Sections of the Society The Bonded Labour System (Abolition) Act, 1976 The Child Labour (Prohibition & Regulation) Act, 1986 Laws related to Social Security The Workmens Compensation Act, 1923 The Employees State Insurance Act, 1948 The Employees Provident Fund and Miscellaneous Provisions Act, 1952 The Payment of Gratuity Act, 1972 Laws related to Employment & Training The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 The Apprentices Act, 1961 Others The Fatal Accidents Act, 1855 The War Injuries Ordinance Act, 1943 The National and Festival Holidays Act The Weekly Holiday Act, 1942 The War Injuries (Compensation Insurance) Act, 1943 The Personal Injuries (Emergency) Provisions Act, 1962 The Personal Injuries (Compensation Insurance) Act, 1963

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 The Labour Laws (Exemption from Furnishing Returns and Maintaining Register by Certain Establishments) Act, 1988 The Public Liability Insurance Act, 1991

UNIT - II

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THE FACTORIES ACT, 1948 Working conditions in factories are regulated by this Act, which provides for health, safety and welfare and precautions to be taken incase of hazardous processes. Minimum standards of lighting, ventilation, health, safety and welfare service, which the employer should provide in their factories, have also been laid down. The Act prescribes 48 hours week for adult workers, prohibits the employment of children under 14 in any factory, and makes some special provisions for children and women. It also makes provision for annual leave with wages. This act contains 9 chapters and 120 sections. The Act is enforced by the State Governments through their Factory Inspectorates. CHAPTER I: (SEC 1-7B) Definition: Factory SEC 2m Means any premises including the precincts thereof i. whereon 10 or more workers are working on any day of the preceding twelve months, and in any part of which a manufacturing process is carried on with the aid of power, or is ordinarily so carried on, or ii. Whereon 20 or more workers are working on any day of the preceding twelve months, and in any part of which manufacturing process is carried on without the aid of power, or is ordinarily carried on ,"Manufacturing process" SEC 2k

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means any process for - (i) 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 (ii) pumping oil, water, sewage or any other substance; or; (iii) generating, transforming or transmitting power; or (iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; lra-6 ] [ lra-7 or lra-7 ] (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; (Inserted by the Factories (Amendment) Act, 1976, w.e.f. 26-10-1976.) (vi) preserving or storing any article in cold storage; Worker SEC 2l A person employed directly or by or through any agency (including a Contractor) with or without the knowledge of the principal employer whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for manufacturing process, or any other kind of work incidental to or connected with the manufacturing process or the subject of the manufacturing process but does not include any member of the armed forces of the Union. MAIN PROVISIONS Registration and Renewal of factories: SEC 6 To be granted by Chief Inspector of Factories on submission of prescribed form, fee and plan CHAPTER III (SEC 11-20) HEALTH: Cleanliness SEC 11 Every factory shall be kept clean and free from effluvia arising from any drain privy or other nuisance.

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Disposal of wastes and effluents SEC 12 Effective arrangements should be made for the treatment and disposal of wastes and effluents Ventilation and temperature SEC 13 Adequate ventilation by circulation of fresh air and suitable temperature for maintaining comfort and preventing injury to the workmen should be ensured. Dust and fumes SEC 14 Effective measures should be taken to prevent inhalation and accumulation of dust and fumes in work room. Artificial Humidification SEC 15 Artificial humidification shall be maintained as per the standards prescribed by the State Government Over crowding SEC 16 Each employee should be given a space of atleast 14.2 cub.m Lighting SEC 17 Sufficient and suitable lighting natural or artificial or both should be maintained Drinking Water SEC 18 Wholesome drinking water should be supplied to the workers Latrines and Urinals SEC 19 Sufficient Latrine and Urinal accommodation conveniently situated and accessible to all workers at all times should be provided Spittoons SEC 20 Sufficient number of spittoons in convenient places shall be maintained in clean and hygienic conditions. CHAPTER IV (SEC 21-41) SAFETY MEASURES: Fencing of Machinery: SEC 21 Every moving part of the prime mover and all moving parts should be properly fenced. Work on near machinery in motion: SEC 22 Trained adult male worker wearing tight fitting clothing should only be allowed to work near machinery in motion Employment young persons on dangerous machines: SEC 23 18

No young person should be allowed to work on dangerous machines without proper training Striking gear and devices for cutting off power: SEC 24 Suitable devices for cutting of power shall be provided for cutting off power Self acting machines: SEC 25 No traversing part of the self-acting of machine shall run over a space which any person is liable to pass Casing of new machinery: SEC 26 All screws and bolts should be encased to prevent any danger Prohibition of employment of women and children near cotton openers: SEC 27 No women and children should be employed near cotton openers Hoists, lifts, lifting machines, chains, ropes and tackles: SEC 28 Hoists, lifts, lifting machines, chains, ropes and tackles should be of good mechanical construction and tested periodically Revolving Machinery: SEC 29 Effort should be taken to ensure that safe working speed of the revolving machinery should not be exceeded Pressure Plants: SEC 31 Effective measures should be taken to ensure that safe working pressure of Pressure Plant is not exceeded Floors, stairs and means of access: SEC 32 Floors, stairs and means of access should be of sound construction and properly maintained Protection of eyes: SEC 35 Eye should be protected from any injury or exposure to excessive light Precaution against dangerous fumes and gases etc., SEC 36 All practical measures should be taken to remove any dangerous fumes, gases, vapours before allowing any person to enter into confined space Explosive or inflammable dust, gas etc.: SEC 36A Effective enclosure of machinery and removal of inflammable dust gas etc., should be done to prevent any explosion Precaution in case of fire: SEC 38 Safe means of escape in the event of a fire and necessary equipments or extinguishing fire should be provided 19

Safety Officer: SEC 40B Wherein more than or equal to 1000 employees are working, a Safety Officer should be appointed CHAPTER V (SEC 42-50) WELFARE MEASURES: Washing facilities: SEC 42 Adequate and suitable facility for washing shall be provided and maintained for the use of workers Facilities for storing and drying clothes: SEC 43 Suitable places for keeping clothing not worn during working hours and for the drying of wet clothing should be provided Facilities for sitting: SEC 44 Suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position, in order that they may take advantage of any opportunities for rest which may occur in the course of their work. First Aid appliances: SEC 45 Provision of first-aid boxes or cupboards equipped with the prescribed contents and the number of such boxes and cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed. Canteens: SEC 46 In every factory wherein more than 250 workers are ordinarily employed a canteen should be provided and maintained. Shelters, Rest rooms and Lunch rooms: SEC 47 Every factory wherein more than 150 workers are ordinarily employed adequate and suitable shelters or rest rooms and a suitable lunchroom, with provision for drinking water shall be provided and maintained for the use of the workers. Crches: SEC 48 When there are 30 are more women workers are employed, there shall be provided and maintained suitable rooms for the use of children under 6 years of age of such women Welfare Officer: SEC 49 When there are 500 or more workers, occupier shall employ such number of welfare officers as prescribed 20

CHAPTER VI (SEC 51-66) WORKING HOURS OF ADULTS: Normal working hours: SEC 51 Weekly Hours 48 hrs Daily Hours - 9 hrs (subject to 48 hrs. / Week) The above restrictions shall not apply to employees who hold position of supervisory, Management or employees in confidential positions (Stenographer, Telephone Operator, PAs or Secretaries.) Urgent Repairs: Weekly hours - 56 hrs Daily hours - 10 hrs

Total Hours of OT / Qtr.- 50 (Qtr means three consecutive months beginning with 1 January, 1 April, 1 July or 1 October) Shift workmen are allowed to work the whole or part of the subsequent shift due to absence of a reliever subject to following conditions: The next shift for the shift workmen shall not commence before a period of eight hours elapsed. notice to Inspector of factories within 24 hrs of the commencement of the shift explaining the reasons under which the worker is required to work exemption to male adult worker only. CHAPTER VII (SEC 67-77) Employment of young persons: SEC 67 Prohibition of employment of young children who have not completed 14 years CHAPTER VIII (SEC 78-84) Annual leave with wages: SEC 78 A worker having worked for 240 days is granted leave with wages @ one day leave for every 20 days of work.

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CHAPTER X (SEC 92-106A) PENALTIES: Offence Penalties For contravention for the provisions of the Imprisonment upto 2 years or fine upto Act or Rules On continuation of contravention On contravention of Chapter IV pertaining to safety or dangerous operations Subsequent provisions Obstructing Inspectors contravention of 1 Lakh or both 1000 per day Not less than Rs.25000 in case death Not less than 5000 in case serious injuries some Imprisonment upto 3 years or fine not less than 10,000 which may extend to 2 Lakhs Imprisonment upto 6 monts or fine

upto 10,000 or both Wrongful disclosing result pertaining to Imprisonment of six months or fine results of analysis upto 10,000or both For contravention of the provisions of Imprisonment upto 7 years with fine Sections 41 B, 41 C and 41 H pertaining to upto compulsory disclosure of information by occupier specific responsibility of occupier or right of workers to work imminent danger Imprisonment of 10 years contravention continuous for 1 year 2 Lakhs and on continuation @ 5000 per day.

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THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 The object of the Act is to require employers in industrial establishments to define the conditions of employment under them and make the said conditions known to workmen employed by them. The conditions of employment includes the conditions of recruitment, discharge, disciplinary action, holidays of the workmen employed in the establishments etc., Applicability of the Act: SEC 1 Every industrial establishment wherein 100 or more (in many States it is 50 or more). Any industry covered by Bombay Industrial Relations Act, 1946. Industrial establishment covered by M.P. Industrial Employment (Standing Orders) Act, 1961. Definition: SEC 2(g) "Industrial establishment" means (i) (ii) (iii) (iv) an industrial establishment as defined in clause (ii) of section 2 of the Payment of Wages Act, 1936 (4 of 1936), or a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948), or a railway as defined in clause (4) of section 2 of the Indian Railways Act, 1890 (9 of 1890), or the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen; Main Provisions of the Act Submission of Draft Standing Orders. SEC 3

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(1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his industrial establishment. (2) Provision shall be made in such draft for every matter set out in the Schedule which may be applicable to the industrial establishment, and where model standing orders have been prescribed, shall be, so far as is practicable, in conformity with such model. (3) The draft standing orders submitted under this section shall be accompanied by a statement giving prescribed particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to which they belong. (4) Subject to such conditions as may be prescribed, a group of employers in similar industrial establishments may submit a joint draft of standing orders under this section. Conditions for Certification of Standing Orders. Standing orders shall be certifiable under this Act if (a) provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and (b) the standing orders are otherwise in conformity with the provisions of this Act; and it shall be the function of the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of the provisions of any standing orders. Certification of Standing Orders. (1) On receipt of the draft under section 3, the Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together with a notice in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from the receipt of the notice.

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(2) After giving the employer and the trade union or such other representatives of the workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall decide whether or not any modification of or addition to the draft submitted by the employer is necessary to render the draft Standing Orders certifiable under this Act, and shall make an order in writing accordingly. (3) The Certifying Officer shall thereupon certify the draft standing orders, after making any modifications therein which his order under sub-section (2) may require, and shall within seven days thereafter send copies of the certified standing orders authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the trade union or other prescribed representatives of the workmen. Appeals: SEC 6 Any employer, workman, trade union or other prescribed representatives of the workmen aggrieved by the order of the Certifying Officer appeal to the appellate authority, and the appellate authority, whose decision shall be final, shall by order in writing confirm the standing orders either in the form certified by the Certifying Officer or after amending the said standing orders by making such modifications thereof or additions thereto as it think necessary to render the standing orders certifiable under this Act. Date of operation of Standing Orders. SEC 7 Standing orders shall, unless an appeal is preferred under section 6, come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent under sub-section (3) of section 5, or where an appeal as aforesaid is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority, are sent under sub-section (2) of section 6. Duration and modification of Standing Orders. (1) Standing orders finally certified under this Act shall not, except on agreement between the employer and the workmen, or a trade union or other representative body of the workmen, be liable to modification until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation. 25

(2) An employer or workman or a trade union or other representative body of the workmen may apply to the Certifying Officer to have the standing orders modified, and such application shall be accompanied by five copies of the modifications proposed to be made, and where such modifications are proposed to be made by agreement between the employer and the workman or a trade union or other representative body of the workmen, a certified copy of that agreement shall be filed along with the application. Posting of Standing Orders: SEC 9 The text of the standing orders as finally certified shall prominently be posted in English or in the language understood by majority of workmen on special board at or near the entrance for majority of workers. Payment of Subsistence Allowance. SEC 10A (1) Where any workman is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, the employer shall pay to such workman subsistence allowance (a) at the rate of fifty per cent. of the wages which the workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and (b) at the rate of seventy-five per cent. of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman. (2) If any dispute arises regarding the subsistence allowance payable to a workman under sub-section (1), the workman or the employer concerned may refer the dispute to the Labour Court, constituted under the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of whose jurisdiction the industrial establishment wherein such workman is employed is situate and the Labour Court to which the dispute is so referred shall, after giving the parties an opportunity of being heard, decide the dispute and such decision shall be final and binding on the parties. (3) Notwithstanding anything contained in the foregoing provisions of this section, where provisions relating to payment of subsistence allowance under any other law for 26

the time being in force in any State are more beneficial than the provisions of this section, the provisions of such other law shall be applicable to the payment of subsistence allowance in that State. Interpretation, etc. of Standing Orders: If any question arises as to the application or interpretation of a standing order certified under this Act, any employer or workman or a trade union or other representative body of the workmen may refer the question to any one of the Labour Courts constituted under the Industrial Disputes Act, 1947 (14 of 1947), and specified for the disposal of such proceeding by the appropriate Government by notification in the Official Gazette, and the Labour Court to which the question is so referred shall, after giving the parties an opportunity of being heard, decide the question and such decision shall be final and binding on the parties. Penalties Sl Offence Penalty

No 1 Employer who fails to submit draft fine five thousand rupees 2 standing orders contravention of the standing orders fine one hundred rupees

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APPRENTICES ACT, 1961

Object of the Act Promotion of new manpower at skills. Improvement/refinement of old skills through theoretical and practical training in number of
trades and occupation

Applicability of the Act Areas and industries as

notified by the Central Government

Apprenticeship Advisor Central Apprenticeship

Advisor when appointed by Central Government.

Sec. 1

Industry Industry means any industry or business or in which any trade, occupation or subject/field in engineering or technology or any vocational course may be specified
as a designated trade Sec. 2(k)

Qualification for being trained as an Apprentice A person cannot be an apprentice in any designated trade unless He is not more than 14 years of age; He satisfies such standard of education And physical fitness as May be prescribed. Sec. 3 Conditions for Novation of Contract of Apprenticeship Obligations of There exists an apprenticeship contract. The employer is unable to fulfil his obligation. The approval of the Apprenticeship Advisor is obtained. Agreement must be registered with the Apprenticeship Advisor. Sec. 5 Employers To provide the apprentice with the training in his trade. To ensure that a person duly qualified is placed in charge of the training of the apprentice. To carry out contractual obligations. Sec. 11

Contract of Apprenticeship To contain such terms and conditions as may be agreed to by the apprentice, or his
guardian (in case he is a minor) and employers. Sec. 4

Termination of Apprenticeship On the expiry of the period of Apprenticeship training. On the application by either of the parties to the contract to the Apprenticeship Advisor Number of Apprentices in Designated Trade To be determined by The Central Government after consulting the Central Apprenticeship Council Sec.8

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Sec. 6

Payment to Apprentices The employer to pay such stipend at a rate of not less than the prescribed minimum rate as may be specified. Sec. 6

Employers liability to pay compensation for injury As per provisions of Workmens Compensation Act. Sec. 16

Obligations of Apprentice To learn his trade conscientiously, diligently. To attend practical and instructional classes regularly. To carry out all lawful orders. To carry out his contractual obligations. Health safety & Welfare measures for Apprentices As per Factories Act or Mines Act as the case may be when undergoing training. Hours of work 42 to 48 in a week while on theoretical training. 42 in a week while on basic training. 42 to 45 in a week in second year of training. As per other workers (in the third year). Not allowed to work between 10 PM to 4 AM unless approved by Apprenticeship Advisor. Leave and Holidays Casual leave for the maximum period of 12 days in a year. Medical leave for the maximum period of 15 days and the accumulated leave upto 40 days in a year. Extraordinary leave upto a maximum period of 10 days in a year. Sec. 15

Period of Apprenticeship Training to be Determined by the National Council

Offences & Punishment Imprisonment of a term upto 6 months or with fine when employer (I) engages as an apprentice a person who is not qualified for being so engaged or (ii) fails to carry out the terms and conditions of a contract of apprenticeship, or (iii) contravenes the provisions of the Act relating to the number of apprentices which he is required to engage under those provisions

29

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 The employment of contract labour cannot be completely ruled out under the circumstances, the government, committed as it is to ideal of social justice could adopt only the middle course i.e., regulating the employment of contract labour in certain establishments and abolishing it in other establishment. In view of the above, this Act was formulated.

Applicability: SEC 1
1. To every Establishment where 20 or more contract workmen are employed/ were

employed in previous 12 months, and 2. To every Contractor who employs 20 or more workmen /employed in previous 12 months

DEFINITIONS: SEC 2 "Appropriate Government" means, (i) in relation to an establishment in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government; (ii) in relation to any other establishment, the Government of the State in which that other establishment is situated; (b) a workman shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer; "Contractor", means SEC 2 (1) (c) a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor; "Controlled industry" means

30

any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest; "Establishment" means SEC 2 (1) (e) (i) any office or department of the Government or a local authority, or (ii) any place where any industry, trade, business, manufacture or occupation is carried on; (f) "prescribed" means prescribed by rules made under this Act; "Principal employer" means (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf, (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named, (iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named, (iv) in any other establishment, any person responsible for the supervision and control of the establishment. Explanation : For the purpose of sub-clause (iii) of this clause, the expressions "mine", "owner" and "agent" shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); "Wages" shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936);

31

"Workman" means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied but does not include any such person (A) who is employed mainly in a managerial or administrative capacity; or (B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or (C) who is an out-worker, that is to say, a person to whom any articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer. (2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State. Main Provisions of the Act Registration of Establishment: SEC 7 Principal Employer (PE) should apply for Registration of the establishment. At any given time, there should be only that number of contract labour An establishment which is not registered under this Act cannot employ (or less) as specified in the Registration Certificate. Contract Labour License for Contractors: SEC 12,13,14

32

All the contractors covered under this Act have to obtain a License for employing contract labour in a particular establishment. License is valid for specified period and can be renewed on payment of License contains conditions like payment of wages to contract labour, fees number of contract labour, hours of work, etc Prohibition of Contract Labour The Appropriate government may prohibit Contract Labour in a particular employment in consultation with the Contract Labour Advisory Board .The following aspects should be considered by appropriate government before prohibiting employment of contract labour Whether work is incidental or necessary to industry, trade, business Whether work is of perennial nature Whether the work is ordinarily done through regular employees Whether the work is sufficient to employ a considerable no. of whole

time employees Amenities for Contract Labour: SEC 16-20 The following amenities are to be provided by the Contractor to the Contract Labour: Canteens when 100 or more contract labours are employed Rest Rooms when contract labour is required to halt at night Wholesome drinking water Latrines and urinals Washing facilities First Aid facilities First Aid box with prescribed contents

The Principal Employer should provide the above facilities if the contractor fails to provide the same. However, the principal Employer can deduct the expense incurred in providing the above facilities to the contract labour from the bill of contractor. Payment of Wages to Contract Labour: SEC 21

33

The payment of wages to the contract labour has to be witnessed and duly certified by an authorized representative of the principal employer. Important Points Registration certificate should be amended whenever the number of Contract Labour engaged changes. Before making the payment to the contractor following should be taken from the Contractor: SEC 29 Copy of PF/ESI Challan Declaration from the Contractor specifying the names of the employees for whom contributions have been made. Wages should be paid to Contract Labour in the presence of Authorized representative. Direct supervision of Contract Labour should not be done. Leave Permission/ID Card/Entry pass of contract employees should not be signed by the Company employees. Contract should not specify the number of persons but the quantity of work. Offences and penalties- SEC22-25

34

THE PLANTATION LABOUR ACT, 1951 Objectives -Regulate condition of workers in plantations -Came into force from 1.4.1954 Scope and Coverage This Act and Rules provides for the welfare of the plantation labour and to regulate the conditions of work in plantations and they are applicable to any land used or intended to be used for the growing of Coffee, Tea, Rubber and Cardamon with an extent of 5 hectares or more and in which 15 or more persons are employed. Sec 1(5) Applicable to whole of India except in Jammu and Kashmir-Sec 1(4) The Government can also by notification declare that all or any of the provisions of this Act and Rules shall apply to any land used or intended to be used for growing any plantations not withstanding that it admeasures less than 5 hectares or the number of persons employed therein is less than 15. Definitions -Plantation -Sec2 -Worker-Sec2 -Young person-Sec2 Administrative Authority-Secs 3A, 3D, 4&43 So far this Act and Rules are enforced by 7 Inspectors of Plantations and 2 Assistant Surgeons (Plantations) spread over 7 Districts in Tamilnadu. The Assistant Surgeons (Plantations) enforce the medical provisions under the Plantation Labour Act and Rules. The entire Inspectorate is headed by the Chief Inspector of Plantations, Chennai. The

35

Chief Inspector of Plantations oversees the enforcement in respect of plantations and he also makes surprise inspections frequently to ensure proper implementation of the Act and Rules. In order to strengthen the enforcement machinery in plantations, it was suggested that the number of Inspectors should be increased for effective and frequent inspections. The Inspectors of Plantations enforce the following Labour Laws also which are applicable to Plantations in respect of Registered Plantations1. The Minimum Wages Act, 1948. 2. The Payment of Wages Act, 1936. 3. Maternity Benefit Act, 1961. 4. Tamilnadu Industrial Establishment (National and Festival Holidays) Act, 1958. 5. The Payment of Subsistence Allowance Act, 1981. 6. The Tamilnadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981 7. The Equal Remuneration Act, 1976. 8. The Payment of Gratuity Act, 1972. 9. The Payment of Bonus Act, 1965. 10. Tamilnadu Labour Welfare Fund Act, 1972. In respect of unregistered plantations, which do not fall under the scope of the Act, the following Two Acts are enforced by the Inspectors of Plantations. 1. The Minimum Wages Act, 1948. 2. Tamilnadu Industrial Establishments (National and Festival

Salient provisions 1) Registration of Plantations-Sec B 2) Health Provisions

36

a. Drinking Water-Sec 8 b. Latrines-Sec 9 c. Medical facilities Sec 10 3) Welfare measures i) Canteens-Sec11 ii) Crches-Sec 12 iii) Recreation-Sec 13 iv) Education-Sec14 v) Housing-Sec15 &16 vi) Employees liability-Sec 16A vii) Other facilities-Sec 17 Viii) Welfare officers-Sec 18 4) Hours of work and Limitation of Employment i) Working Hours-Sec 25,19 Holidays Sec 19(2) &(3) ii) Weekly Holiday-Sec 20(1) &(2) iii) Rest Interval-Sec 21&22 iv) Certificate of fitness-Sec 26&27 5) Leave with wages-Sec 29& 30 6) Sickness allowance-Sec 32 Obligations of Employers i. ii. iii. Notice of period of work-Sec 23 Notice of Accident-Sec 32A Register of Accidents-Sec 32B

Offences and penalties Sec 33 to 37

37

UNIT III

38

THE TAMILNADU SHOPS AND ESTABLISHMENTS ACT, 1947 This law regulates the employment of workers in shops and commercial establishments. The Act provides for the opening and closing hours of shops and establishments, and provision of weekly holiday with wages. The officials of the Labour Department who are notified as Inspectors under the Act are competent to initiate prosecution proceedings against the employers who violate the provision of this law. The Act provides for the compounding of offences committed under this law. This Act gives pride of place to the Tamil Language. This Act requires that in the name board of any shop or commercial establishment the name of the establishment should be written predominantly in Tamil. This Act is being enforced by 218 Assistant Inspectors of Labour, 68 Deputy Inspectors of Labour and 28 Inspectors of Labour. Applicability The Act is applicable to all Shops and Commercial Establishments

Duties and Obligations The following registers need to be maintained by the employer

NAME OF THE REGISTER FORM NO.SECTION & RULE a. Register of Fines FORM B Section 35(1)-Rule 11(3)(a) b. Register of deductions for damage or Loss FORM C Section 37(2)-Rule 11(4) c. Register of Advances FORM D Section 39-Rule 13(4) d. Register of Employment FORM E and FORM F Section 47-Rule 16(1) e. Record of Hours of Work FORM H Section 47-Rule 16(3) f. Register of Holidays, Leave, etc., FORM K Section 47-Rule 16(9) g. Register of Wages FORM M Section 47-Rule 11(5) h. Register of Service FORM N Section 47-Rule 16-AA i. To exhibit a notice in Form J specifying the day of the week on which persons employed shall be given holiday. j. To display the name board in Tamil and other languages below. Consequence of Non-Compliance of the Requirements:

39

Failure to comply with certain provisions may attract fine up to Administering Authority The Labour Department.

250/-

40

THE TAMIL NADU INDUSTRIAL ESTABLISHMENT (CONFERMENT OF PERMANENT STATUS TO WORKMEN) ACT, 1981 Salient features: This act received the accent from the president on 5th August 1981 and came in to foce on 1st January 1982. This act consists of 10 sections in made. The Preamble of the object: An Act to provide for the conferment of permanent status to workmen in an industrial establishment to the state of Tamil Nadu Applicability: The act applies to Factories, Plantations, Motor transport, Beedi industrial premium, Shops and Commercial establishment and catering establishment and other establishment Non- Applicability: This act does not apply to any industrial establishment until the expiry of 2 years from the date of its establishments and also to industrial establishment in which less than 50 workers where employed on any day of the proceeding 12 months This act is not applicable to workmen employed in industrial establishment engage in construction of Buildings, Bridges, Roads, Canals, and Dams This act does not applies to employer who are working as supervisor and getting more than 3000 or manager or in administrating capacity are excluded from the provision of this act. Conferment of the permanent status of workmen: SEC 3 Every workman who has putting continuous services of 480 days in a period of 24 calendar months should be conferred permanent status in the establishment.

41

A continuous services included services which may interrupted due to sickness/authorized leave/accidents/legal strikes/lock out/lay off effected understanding order or under in agreement/earned leave with full wages availed period of employment/ the absence for disablement caused by accident assisting in the course and out of the course of employment and for females maternity not exceeding a period nor more than 12 weeks Appointment of Inspectors: SEC 4 The state government may by notify in the official gazette and can be vigil around the industries Power of duties of inspectors: SEC 5 Entry to establishment at any reasonable times for inspection, take any evidence, he can use power. May check any registers, records, documents and take evidence of such persons necessary for purpose for this act. Penalities & Penal provisions: SEC 6 Any employer who violate he shall be fined upto 5000 and in case of continuous offences will the further fine upto 200 per day

42

THE TAMIL NADU PAYMENT OF SUBSISTENCE ALLOWANCE ACT, 1981 Salient features: This act received the accent of the president on 21st July 1981 This act consist of 13 sections Preamble of the act: An act to provide for the payment of subsistence allowance to employer during the period of suspension Non applicability: This act does not apply to persons employed in managerial or administrative capacity or in supervisory capacity drawn wages more than 3500 per month. This act does not apply to any office or department of the central or state government or railway administration or any mine or royal or any other major part or any public sector under taking of central government. Payment of subsistence allowance: SEC 3 The employee under suspension is entitled to receive payment from the employer as subsistence allowance during the period of such suspension An amount of 50% of wages (last drawn) for the first 90days from the date of suspension An amount of 75%of wages (last drawn) for a period over 90days but below 180 days An amount of 100%of wages (last drawn) in full for a period over 180 days An employee will not receive any subsistence allowance if he accesses any other employment during his period of suspension in any other establishment. Time limit for payment of subsistence allowance: The subsistence allowance shall be paid to the employee by the employer on the date or dates on which the wages due to the employee would have become payable

43

Recovery proceedings: SEC 4 The employee or any member of Trade union or legal representative or any authorized person acting on his behalf (form 6,7) make an application to the government in double (form3,4) with in one year from the date on which money become dues. The government gives notices to the employer and employee under (form5) and after giving the both parties opportunities have been heard, the government issues a certificated for that amount to the collector along with compensation (with in 30 days) equal to 50% of the amount of subsistence allowance or 250. The Collector recovers the money from the employer as arrear of land revenue. The subsistence allowance along with the compensation amount shall be paid ith in 30 days to the employee after passing order. Penalities: SEC 9 3 months imprisonment or fine up to 1000 or both Condition for payment of subsistence allowance: RULE 3 Subsistence allowance shall be paid in person or through Postal Money Order The employer shall maintain a register of employees placed under suspension in the Form-I The employee sign shall be obtained for each payment of subsistence allowance

44

TAMILNADU INDUSTRIAL ESTABLISHMENTS (NATIONAL & FESTIVAL HOLIDAYS) ACT 1951. Objective of the act: An act to provide for grant of National and Festival holidays to person employed in industrial establishment in the state of Tamilnadu Applicability: Applicable to all industrial establishment, shop & commercial, plantations, motor transport, beedi industrial premises and catering establishment, etc., This act does not apply to industrial establishment under control of central or state government/ the local authority/ RBI/planning authority/mine/oil fields. This act does not apply to managers, administrator category Grant of National & Festival holidays: SEC 3 Every employee is entitled to 4 paid National holidays and 5 other holidays for such festivals as inspector may specify in consultation with the employer and employee National Holidays: January 26, May 1, August 2, October 2 Festival Holidays: Pongal, Deepavali, Ramzan, Christmas, Vinayagar Chathurthi Note: The festival holidays may differ from state to state and organization to organization Obligations: SEC 4 Every employer must sent statements to the Inspector in Form I having jurisdiction over the area in which industrial establishment is extended and display in the premises of the establishment showing holidays allowed in a calendar year in Form II

45

Wages: SEC 5 Every employer shall be paid wages of each of the holidays allowed to his under SEC 3, where a employer works on a festival or national holiday. He shall at his option be entitled to twice the wage or wages for the holidays and substitute holiday with wages or any other day. The wages should be paid to the employer for festival holidays if he has completed a period of 30 days continuous services with in a period of 90 days immediately processing such holiday. Penalties & Penal provision: SEC 8 If any employer violates SEC 3 or SEC 5 then he is punishable with fine of for first offence and 250 for second subsequent offences Penalty of obstructing of Inspectors 500 or imprisonment for 3 months or both 50

46

TAMIL NADU WELFARE FUND ACT, 1972

ORGANISATION : The Tamilnadu Labour Welfare Board was constituted by the Government of Tamilnadu in the year 1971 by an executive order of the Government (G.O.Ms No.222 Labour Dept, dated: 20.2.1971) with the view to promote the Welfare of the employees and their dependents with an adhoc grant of Rs.5 lakh. The Tamil Nadu Labour Welfare Fund Act, 1972 was passed by the State and was given effect from 1.1.1973. The Statutory Labour Welfare Board was formed with effect from 1.4.1975 with the Minister Incharge of Labour as Chairman. five representatives of employees, five representatives of employers, three members of State Legislative Assembly, four Official members and two Non-Official members. The important provisions of the Act deals with:a. Collection of Labour Welfare Fund b. Vesting and Application of the Fund. c. Constitution of the Board. d. Term of Members. e. Power to appoint committee. f. Functions of the Board. g. Unpaid Accumulations. h. Deposit of Funds. i. Placing of Accounts and Audit Report before the State Legislature.

47

j. Power to make Rules and Regulations. The Tamilnadu Labour Welfare Fund Rules 1973 deals with:a. Payment of Fines and Unpaid Accumulations by the Employer b. Maintenance and Audit of Accounts c. Budget of the Board d. Additional Expenditure e. Mode of Payment f. Payment of Contributions g. Meetings of the Board h. Quorum i. Administrative and Financial Powers of the Secretary j. Publication of Annual Report k. Maintenance of Registers by Employers l. Form A- Statement showing the particulars of contribution amount paid to the Secretary, Tamil Nadu Labour Welfare Board. m. Form B- Register of Wages n. Form C- Register of Fines and Unpaid Accumulations 3. LABOUR WELFARE FUND The Government constitutes Labour Welfare Fund, as per section 3, to Which the following are credited to a) All Unpaid Accumulations due to workers b) All fines realized from the workers c) Deduction made under the proviso to Sub-section(2) of section 9 of the Wages Act,1936 and the proviso to Sub-section (2) of section 36 Shops and Establishments Act, 1947. d) Contribution from Employers and Employees e) Any interest by way of penalty, paid under Section 14 of the Tamil Nadu Labour Welfare Fund Act, 1972. f) Any Voluntary Donation. Payment of of the Tamil Nadu

48

g) Any amount raised by the Board from other sources to augment the resources of the Board. h) Any fund transferred under Sub-section 5 of Section 17 of the Tamil Nadu Labour Welfare Fund Act, 1972. i) Any sum borrowed under Section 18 of Tamil Nadu Labour Welfare Fund Act,1972 j) Any unclaimed amount credited to the Government in accordance with the rules made under the Payment of Wages Act, 1936 and Minimum Wages Act, 1948. k) Grants or Advances made by the Government. l) All fines imposed and realized from Employers by Courts for violation of Labour Laws less the deduction made by Courts towards administrative expenses. Contribution to the Fund by Employee and Employer (Sec 15) and rules 11 (a): Every Employee contributes Rs.5/- per year and every Employer in respect of and such Employee, contributes Rs.10/- per year to the Fund and the Government in respect of each such employee contributes Rs.5/- per year to the Fund. (Amendment to Tamil Nadu Labour Welfare Fund Rules, 1973 (G.O. Ms.No.159, Labour and Employment (G.2) date.7.12.1998) CONSTITUTION OF THE BOARD : The Board shall consist of twenty members including the chairman who shall be the Minister in charge of Labour and the following members were appointed by the Government : a) five representatives of employers appointed by the State Government in consultation with such organisation of employers in the State ; b) five employees representatives to be appointed by the State Government in consultation with such organisation of employees in the State ; c) three member of the State Legislature ; d) four Government Officials ; e) two independent members ; Provided that if there is no other woman representative in the Board, the question of including woman representative as an independent member would be considered by the Government. (2) The Board shall elect a Vice-Chairman to perform the duties of the 49

Chairman in his absence. (3) The term of office of the members of the Board other than official members shall be three years from the date of their appointment and they shall be eligible for reappointment. Provided that a member of the State Legislature shall cease to be a member of the Board from the date on which he ceases to be a member of the State Legislature. SCHEMES The Tamil Nadu Labour Welfare Fund is being utilized by the Board to defray the cost of carrying out the following welfare schemes. At present employees who are drawing upto 10000/- p.m. are eligible to avail the Scheme benefit. 1. Labour Welfare Centres There are 71 Labour welfare Centres in Tamil Nadu . a) Tailoring Centres: Wives and unmarried Daughters and sisters of workmen who are Contributors of Tamil Nadu Labour Welfare Fund are eligible to undergo Training in Tailoring Centres. The Trainees in tailoring section are paid Stipend at the rate of 150/- per month. A maximum of 50 Trainees are Admitted in the Tailoring Units in each Centre. The duration of the course is one year commencing from January to December. The trainees are imparted in needle work skill, dress making and embroidery. They appear for the Examination conducted by the Government in the month of December. The First rank holder in each centre is given with a prize of sewing machine for Lower as well as higher grade. b) Creches: In this Unit children of workers in the age group of two to five years are admitted. Besides Nutritious Food and 150 ml. milk per day is supplied to these children. The Children are given eggs thrice and fruits twice in a week. A maximum of 50 children are admitted in the child care centre. 50

The children are subjected to monthly medical checkup twice in a month by a qualified Doctor and if necessary they are given medicines free of cost by the Board. They are also provided with two sets of T.C. Uniform. 2. Reading Rooms There are Seventy one Reading rooms functioning in 71 Labour Welfare Centres wherein newspapers and magazines are provided for the benefit of the workers .

3. Book Allowance The following Book allowances are given to the workers of the children for their studies. Higher Secondary .. Degree .. 500/= 750/= Post Graduate .. 4. Scholarship Scholarship is given to the children of the workers for pursuing their education at the rates as indicated below, based on their marks in their qualifying examination subject to the maximum indicated against each item. Per year 1. Bachelor Degree in Medicine: 3. Bachelor Degree in Law: 5. I.T.I.: 2400/- 25 Students 2400/- 80 Students 2. Bachelor Degree in Engineering: 180/=

2400/- 25 Students

4. Bachelor Degree in Agriculture: 2400/- 25 Students 1000/- 100 Students 1200/- 3 students in each district 1440/- 150 Students 1440/- 25 Students 6. Higher Secondary:

7. Diploma in Engineering. : 8. Diploma in Medicine : 5. Educational Incentive Cash Awards of

1000/- and

500/- are being awarded to the children

of the workers who come first and second in 10thth and 12th Examinations in Each 51

Educational District. 6. Assistance for Basic Computer Training : Reimbursement of 1000/= to be provided to 5 of the employees / dependants in each revenue district totally for 150 beneficiaries who complete basic computer training through approved institutions. 7. Spectacles Reimbursement of cost of spectacles upto on production of Medical Certificate. 8. Reimbursement of Typewriting and Shorthand Fees Workers children who have passed typewriting are paid Shorthand 30/= per month, for 40/= per month and Government prescribed examination fees. 400/- is given to the workers

9. Hearing Aid, Artificial Limbs and Three Wheeler Reimbursement of cost of Hearing Aids up to 1000/= are given to hearing impaired workers and their children. Similarly costs of Artificial Limbs are also reimbursed and Three Wheelers are supplied to the Handicapped workers and their children. 10. Funeral Expenses When a worker dies in harness, his dependent is paid funeral expenses. 11. T.B Wards Tamil Nadu Labour Welfare Board has reserved beds for workers in T.B Wards in Tambaram Sanatorium (Chennai), Tiruppur (Coimbatore District), Asaripallam (Kanya kumari District), Austinpatti (Madurai District) and Kilpennathur (Vellore District) for the benefit of the workers. 12. Holiday Homes 1500/- towards

52

In order to enable the workers to enjoy with their family, Holiday Homes had been put up by the Tamil Nadu Labour Welfare Board at Courtalam, Mamallapuram and Valparai. (i) A Holiday Home named as Singaravelar Illam is functioning at Valparai for the benefit of Industrial Workers since 1987. Thirty Beds are provided therein. (ii) A Holiday Home in the name of Thiru-vi-ka Illam at courtalam is functioning from 20.9.1983. Ninety Three beds are provided therein. (iii)A Holiday Home viz. Jawaharlal Nehru Illam is functioning at Mamallapuram from 1988. Forty Four Beds are provided therein. 13. Jeeva Illam The Board opened Jeeva Illam at Teynampet, Chennai during 1981. Workers representatives who come to Chennai from different places for conducting cases on behalf of the workers can get accommodation in Jeeva Illam at Nominal rent. Jeeva Illam annexure building was opened on 19.12.98. Totally Sixty Two beds are provided therein. Rent For Jeeva Illam Per Day Per Person Double Room Dormitory 30/Trade Union Leaders only 20/8. Uzhaippavar Ulagam : A monthly magazine named Uzhaippavar Ulagam is published by this Board. This magazine contains important judgments of the Labour Disputes, Amendments, Question-Answers on Labour related matters and Letters from Readers etc. This magazine can be received by way of paying annual subscription of 60/- or Life subscription of 500/-. The amount can be sent by means of either by Money Order or Demand Draft drawn in favour of the Secretary, Tamil Nadu Labour Welfare Board, Chennai-6. 9. ADMINISTRATION The total sanctioned strength of the Tamil Nadu Labour Welfare Board including Officers and staff was 412. The group wise position of sanctioned staff vis-a-vis position is given below. 53

10. BOARD MEETING : The Board shall meet at least once in every quarter and as often as may be necessary. The Board shall take decision on all the important administrative and financial matters. The Secretary of the Board shall implement the decision taken by the Board. It is not open to the Public to attend the Board Meeting. But the minutes of the such meeting are accessible for the general public. To advise the Board to discharge its function and in particular for carrying in to effect any of the matters specified in the act, the Board may constitute one or more committees consisting of at least one member of the board and equal member of representatives of Employees and Employers. The relevant information in respect of the Board is available in the Government web site and the copy of the same is available in the notice board of this Board. Relevant application forms for the welfare schemes can be obtained from this office on all working days between 10.00 AM to 5.45 PM. The Board is exclusively formed for the benefit and promoting the welfare of Labour. The representative of workers i.e. trade union leaders and representative of public i.e., Members of Legislative Assembly are member of the Board. In view of this no particular arrangement exists in this Board for consultation with or representation by the member of general public in relation to the formulation of its policy for implementation.

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THE TAMIL NADU CATERING ESTABLISHMENT ACT, 1958 For the successful operation of any food service, it is binding on owners and managers to fulfill certain obligations. Some of these are unwritten such as the obligation to satisfy the customer; others are written down in the form of contracts, mutually agreed upon by employers and their employees. Still others are based on the expectation of people within the established and outside of it, developed as codes of practice over the years. Finally there are Statutory or Legal obligations which need to be fulfilled for safe guarding the health and well-being of people and the establishment. Objectives: The Tamil Nadu Catering Establishment Act, 1958 is a State Legislation. This act focuses attention on those laws and regulations which affect food service organization and therefore need to be complied with. For the sake of simplicity, all laws will be dealt with under two main headings. (i) (ii) Those affecting people working in food service establishments. Those affecting the production and service of food generally referred to as food laws. In considering the legal implication of any food service, it is important to be aware of the fact that laws keep changing or get amended by courts or through acts of state legislation from time to time is done to make them applicable to the changing patterns and needs of society. 55

The act generally provides for the working hours, rest intervals, overtime, holidays, leave, termination of service, maintenance of catering units and other rights and obligations of the employers and employees. Scope and coverage: The Act particularly defines factories to include establishments which prepare articles of food and drink for service to members of the public. It also classes as workers all persons employed in a kitchens for preparing food for sale and canteen workers supplying basic and essential amenities to workers engaged in manufacture of goods for sale. The legislation thus broadly covers industrial canteens, commercial food service establishments and all other food services irrespective of their size or nature. The Act extends to the whole of the state and covers all irrespective of their size, turnover and persons employed. The Act generally applies to residential Hotels Restaurants, clubs, canteens, cinemas, public amusement or entertaining places, catering units, food production units tea and snacks stalls, cafeterias, kiosks, ice cream parlours, fast food outlets, etc. The Act applies to all food service establishments employing more or less than 20 workers and covers all employees whose monthly wages do not exceed 1, 000 per month. Since catering is a fast growing industry, and workers are becoming members of trade unions, the trade union act, 1926 is also applicable. Trade unions are basically associations of workers formed for the regulation of relations between people at work, whether it be among employers, employees, or both. These associations are supposed to functions so that people can act together to strengthen their bargaining power, and negotiate with employers on progressive or controversial matters. The following are the Laws affecting food service establishment. Labour laws:

56

Apprentices Act 1961, Fatal Accident Act, Breach if Contract Act, Employees and Workmen Act, The Indian Contracts Act, Workmens Compensation Act, The Indian Trade Unions Act, payment of Wages Act, the Weekly Holidays Act, Industrial Disputes Act, The Factories Act, The Minimum Wages Act, Employees Provident Fund Act, The shops and Establishments Act, payment of Bonus Act, The specific Relief Act, Lab our Provident funds Laws Act, Employees family Pension Scheme, Payment of Gratuity Act. Foods Laws Food laws came into existence for a number of reasons: (i) (ii) To maintain the quality of food catered and produced in the state. To prevent exploitation of the consumer by the sellers. This could only be done by making consumers aware of what to expect in terms of quality when they ate / bought food. (iii) (iv) To safeguard the health of the consumers. To establish criteria for quality of food products, since more and more foods were eaten in processed, rather than in natural forms. This has resulted in the inability of the consumer to identify the quality of the contents of a packet or can, except through the label, or a mark of quality that could be identified easily.

Some Food Laws: Indian Penal Code 1860, Sale of Goods Act 1930, Agricultural Produce Grading and Marketing Act 19 37, Emblems and Names Act 1950, Indian Standards Institution Act 1952, Standards of Weights and Measures Act 1952, Prevention of food Adulteration Act 1954, Essential Commodities Act 1955, Fruit Products Order 1955, The trade and Merchandise Marks Act 1958,Indian Standards Institution Amended in 1981 to apply to air 1974, Standards of Weights and Measures Rules 1977, Prevention of Black Marketing and Maintenance of supplies pf Essential Commodities Act 1980, Standards of Weights and Measure Act 1985, Consumer Protection Act

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1986,Environment Protection Act 1986, bureau of Indian Standards (BIS) Act 1986, MRTP Bill 1991. Obligations of Employers (1) Registration The primary obligation of every establishment is that it should be registered, so that it has the legal sanction to operate as a place of public service. Registration of the establishment are controlled by the State government department depending on the location and size of the facility. The process generally requires owners and or managers to obtain a prescribed form of registration from the relevant department, complete it with the information asked for, and submit it with the prescribed registration fees. Every caterer needs to provide the following information to the registrars office. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Name of the employer and/or manager. Area of the premises. Value of the premises. Water and light connections existing or required within the establishment. Number of employees on the premises. Medical and other employee facilities provided. Contribution of employer to provident fund and other insurance schemes of employees. Postal address of the establishment. Name in which the establishment is to be registered. Category of the food service such as kiosk, coffee shop, cafeteria, restaurant or any other. (2) Working hours The Tamil Nadu catering Act covers the conditions of work, which must be provided by all employers in catering establishments. Working conditions refers to fixation of working hours. Regular and timely payment of wages, paid leave creation if a healthy working environment through the provision of basic necessities such as 58

toilets, washing, facilities, rest rooms, comfort at work, and the establishment of good human relations. The Act requires every employer to: (i) (ii) Specify the hours of work which each employee is expected to put in on every working day. Ensure that no one is required to work more than five hours at a stretch without at least a half hour break; or nine hours on any single day or 48 hours in any single week. In case it becomes necessary in conditions of emergencies such as staff shortages, strikes, etc. for people to work for longer hours, no person should be made to work more than 54 hours in a week. (iii) (iv) (v) Every employee must have at least 24 continuous hours off in a week, with full wages. The periods during which wages will be paid every month need to be specified and payment expected to be made promptly every month. Further, employers are expected to intimate these conditions to the Chief Inspector in charge of the area.

(3)

Welfare for the employees To fulfill the conditions laid down by the act, every owner or manager of a

catering establishment must look after those aspects concerned with welfare of employees. The provision of welfare by an employer usually included the following: (a) Washing facilities for staff along with toilets and rest rooms. (b) First-aid facilities. (c) Paid annual leave. (d) Uniforms including foot wear that is comfortable for work. (e) Working hours not exceeding 10 1/2 hours a day, including rest periods. The maximum hours per week must not exceed 48 hours. Provision is also made for overtime work.

59

(f) Paid annual leave at the rate of one months salary for every year of service for permanent employees. Other benefits under the Act include: (g) Canteen facilities: the provision of canteen facilities and meals at subsidized rates, especially where more than 250 workers are employed. As far as food service establishments are concerned, the provisions of meals (free or subsidised has become custom and practice even in small establishments, with less than 20 workers. This is because the product of catering institutions is food, and the benefit acts as a deterrent to pilferage. Besides, it is an established fact that if refreshments are given at regular intervals during working hours, the efficiency remains good throughout the day. (h) Housing facilities: These may take the form of housing or payment of a proportion of the salary distributed as House Rent Allowance (HCR) for renting of accommodation. Managements may also offer loans for building and so on. (i) Financial and legal services: These involve offering credit and loan facilities to employees who are in need of money for various reasons. Legal advice may also be given when necessary, to maintain the morale of the people. (j) Purchasing services: Some establishments may set up a scheme for the employees, for purchasing of food items in stock at discounted prices. This is beneficial to the institution and the employees, because in catering it is better to sell out the prepared food items at the end of the day, than to risk storing them for use the next day, especially if cold storage facilities are inadequate. This saves the establishment the expense on unduly large storage spaces too, and helps employees to carry home ready meals and snacks cheaply, without having to stop and shop on the way home, after a full days work. (k) Recreational activities: The provision of physical and mental diversions at work is becoming increasingly important for people. Even in very small establishments, it has become practice to provide music through radios or tape. It is not uncommon to fond vendors tuned to their transistors while on their rounds selling food items. I

(4) Health and Safety: 60

The act also lays down conditions to safeguard the health and safety of people at work. In order to conform to the act, employers are liable to provide an environment which does not in any way affect adversely, the health of any persons, or injure or disable him in any way. To ensure a healthy environment, therefore, it is necessary to guarantee: (a) The cleanliness of the establishment and staff. (b) Proper disposal of waste materials. (c) Proper ventilation to prevent dust and fumes from collecting in the work environment, and to control humidity through provision of exhaust fans. Unduly high humidity in kitchens causes fatigue and sweating, affecting the food being handled, and through it, the health of the people. (d) Lighting should be such that it does not affect the visibility and eyesight of people at work. (e) Overcrowding should be avoided by proper planning of areas. (f) Clean drinking water should be provided. (g) Proper washing and toilet facilities are essential. Procedures suggested for the safety of employees at work include: (h) Periodic maintenance of electric appliances. (i) Proper placement of firefighting equipment, and its regular maintenance. (j) Adequate supply of safe water. (k) Comfortable working temperatures. (l) Adequate sanitary facilities for staff and customers. In some states, the local authorities have specified the kind and number of facilities that a caterer is obliged to provide in accordance with various sizes and types of establishments. One toilet to 12 persons has been suggested. (m) Training in the use of equipment to eliminate risk of injuiry. (n) Eradication, of rodents insects and pests of all kinds. (o) All bins should be emptied into the garbage collection bin placed covered on the outside of kitchens; or in scaled polythene bags which are leak proof. These can then be removed from the premises by the municipal authorities and burnt in an incinerator away from the establishment.

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(5) Wages Payments include those made to employees in lieu of work done. These may be in the form of wages, bonuses, insurance premiums, provident fund and gratuity payments. Sometimes employers are liable to make cash payments in the form of the compensations for injury or loss to employees at work. The criteria set out for wage fixation in the Act are: (i) (ii) Living wages. These are expected to be linked with the cost of living index and the supply and demand situation for labour. The ability to pay. The payment of wages is related to the conditions provided by each type of establishments for work and wage and salary agreements between employers and employees, made according to specific job requirements. (iii) Fixing wages according to the going rate within the catering field.

(6) Personnel hygiene: Personnel hygiene refers to the general health, personal grooming and working habits of all people who work in a catering establishment. While it is important to adopt regular procedures for maintaining the hygiene and sanitation of the environment and the processes through which food is handled in any establishment, all these efforts would be in vain if the staff handling the food are the cause of the contamination. To safeguard this a few general rules will act as a guide, which all persons handlings food should follow strictly: 1. 2. All staff reporting on duty must be fresh, well groomed and clean; not half asleep, or unkempt in appearance They must change into fresh, clean overalls and those working in kitchens and service areas should wear head coverings to protect food from loose hair falling into it 3. Fingernails should be short and clean, with no nail lacquers in case of women.

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4. 5. 6.

Hands should be washed well with soap before starting work or after using toilets, during work. Extra care is necessary to clean nails properly. All cuts must be covered with waterproof dressings. Infection is easily transferred from hair, nose and mouth: therefore -combs should be kept out of kitchen. spitting or smoking in the kitchen

or service areas should be strictly prohibited. -when sneezing, while handlings food, the face should be turned away from food and a handkerchief or tissue used. 7. People with colds, sore throat, boils, diarrhoea or any other gastrointestinal disorder, should not handle food. 8. Leaning or sitting in the work table is an objectionable habit. 9. All peals, etc. should be thrown into a container and not kept lying around on the work table near the prepared food. The containers should be emptied into covered bins as soon as the work is done. 10. All the kitchen cloths and equipment must be washed preferably at 430 C to 450C with a suitable detergent. A grease layer on the surface of the water means the detergent is not enough to be effective. Ensure that all strains are removed from equipment and cloths. 11. All crockery and cutlery should preferably be immersed in hot water at 770 C for wiping these dry. 12. Food should be kept covered and maintained either ice-cold or piping hot. 13. Food must be handled correctly and as little as possible.

RULES FOR ESTABLISHING A CATERING ESTABLISHMENT (a) Site: When a site is being examined for establishing a food service, it should be scrutinized for the amount of air population or whether it is free from the potential of infestation by insects, rats, flies, fleas, etc. and not only for what it costs, or how beautiful the landscape is, or how busy and well inhabited the surroundings are to attract customers. (b) Structure: The clean ability of floor, walls, ceilings or any other surfaces built into the establishment is the basis for maintaining a structure free from the hazards

63

of infection. The materials selected therefore should be non-absorbent, noncorrosive and easy to keep clean. (c) Equipment, Furniture and Fittings: It would suffice here to say that, in general, these should be designed so that they do not harbour dust or dirt, which is the source of microorganisms. It is important to discard any equipment which are chipped, dented or damaged if in use for preparation or service activities. (d) Ventilation: It is evident that where a number of people are working together, handling, cooking and consuming food, the atmosphere gets heated up and polluted with carbon dioxide as a result of normal respiration. This creates condition conducive to the growth of micro organisms. In has been estimated that if a man is breathing normally in a room containing 1,000 cu.ft. of air, the air will contain 0.6 percent carbon dioxide in 20 minutes. This is the maximum permissible limit beyond which the atmosphere would be considered polluted or unhealthy. All kitchens must be provided with exhaust fans and extraction hoods above cooking ranges to remove steam and organic impurities. (e) Lighting: All areas should be well lighted to make dirt, grease and infestation easily detectable. (f) Water supply: The water supply to all catering establishment should be treated to ensure that it is fit for drinking, cooking, of foods and washing of utensils. (g) Water disposal: Kitchens waste comprises peelings, trimmings, plate waste, spillage Empty cans, bottles, packing materials, etc. these must never be allowed to remain anywhere near the production, storage or service areas, because they can attract insects, files, rodents and even stray dogs and other animals. All these then become agents of contamination to whole some food. Arrangements most be established for collecting all waste materials at the end of the day and completely destroying them or removing them to garbage disposal centres in sealed, leak proof bags.

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(h) Hygiene in food handling: Catering being a labour intensive service, the foods, materials and equipment are subject to constant handling by people, at every stage of the food production and service. Hygiene with respect to each activity of the catering cycle is discussed below. (i) Receiving food materials: Right from the point of receiving food materials, the principles of hygiene and sanitation need to be applied. A strict check on the quality of the food received will go a long way to provide wholesome food to the customer. The quality particularly needs to be checked for each category of items, in terms of any signs for predisposing factors to contamination by micro organisms, accidental chemical additives due to pesticide residues or insect infestation. (j) Storage: To ensure that foods do not become hazardous to health while in storage, three important aspects have to be considered: (i) Temperature prevailing in storages. The temperature to be maintained in a particular store will depend on the type of foods to be held and the period for which they have to be stored. (ii) Humidity in the storage environment. The humidity in a room and there by moisture content of the air around stored foods affects the rate of growth of various organisms. Foods that can be safely stored at higher temperature are those which have relatively low moisture content, like flours, sugar, species, cereal, pulses and legumes. But these foods also have the ability to absorb moisture when exposed to it. (iii) Presence or absence of any type of infestation. Presence or absence of infestation: The presence of infestation in or around a store can contaminate food in storage and make it unfit for human consumption, even though hygiene and sanitation may have been carefully adhered to in the preparation and service of the food. (k)Prevention of Infestation:In addition, surfaces, equipment design, method of work and peoples habits play an important role in maintaining an environment free from dust, dirt humid corners, etc. which would harbour insects.

(l) Preparation: Handling food at the stage of preparing for cooking is as important from the hygiene point of view as is receiving and storage. It is at this stage that 65

contamination can take place easily even from one food to another, so every type of food requires special attention. Fresh fruits and vegetables, especially roots and tubers which grow nearer the soil, need to be washed very thoroughly in plenty of water, to remove adhering soil or other particles. High protein foods such as eggs, milk, meats must be kept separately as they are likely to take up micro organisms very fast, being excellent media for their growth. If complete birds are being cleaned and prepared for cooking, the viscera must be immediately sealed off for disposal. This is because the intestines of birds and animals can be infested with worms or bacteria which can be passed on to other foods. (m)Cooking: Food should be cooked as quickly as possible after preparation, unless frozen for later use. (n)Holding: In most food service establishments cooked foods needs to be held for sometime before it can be served as all customers do not come at the same time. Also because of larger quantities involved, food has to be prepared and kept ready in advance. (o)Serving: While serving food, care is necessary to ensure that all serving equipment is clean, and the server is not in any way contaminating the food. All table ware must be also kept clean at all times, washing in enough hot water with a detergent to ensure that micro organic load is minimized after use.

INSPECTION The enforcement of minimum standards of safety and sanitation in food services is usually the responsibility of the local health and sanitation authority of the state or area (Corporation, Panchayat, and Municipality). The Directorate General of Health Services (DGHS) is responsible for setting up inspection cells to ensure the health and safety of the people from any health hazards. A Regular Inspection Routine is as follows:

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1. Quick, cursory inspection. 2. Detailed inspection generally commencing at the farthest point and working back: (a) Refuse storage areas-general condition of bins and area, evidence or rodents, frequency of collection, etc. (b) Outside drainage-leakages and blockages, evidence of overflowing cisterns, yard gullies, etc. (c) Staff sanitary accommodation-whether adequate and in a safe condition, separation from food rooms, proper ventilation, hand washing facilities, clothing lockers, provision of notice boards for instructions etc. (d) Food storage accommodation- ventilation, rodent and insect evidence, condition of products, codes, storage of non-food products, etc. (e) Kitchen-general, walls, floor, ceiling. i. Ventilation of entire area. ii. Lighting. iii. Food preparation areas-condition of sinks-whether adequate; potato peeler, other equipment for pastry preparation, mixers can openers, drawers for knives, etc. iv. Cooking areas-condition of stoves, ovens, etc. pots and pans, hoods and extracts, especially filters, lighting, handling clothes. v. Storage in the kitchen-refrigerators and freezers, check temperatures, plate and equipment storage, drawers. vi. Personal washing facilities, toilets and change rooms; any evidence of recent use? vii. Survey areas-storage of food, temperatures, hot plates Bain maries, production of open food, display of food, labeling, checking of ice-cream fridge, cupboards under counters, chill cabinets condition of plates, cutlery etc. viii. Wash-up areas-plate and crockery, use of machines, detergents, drying racks, tea clothes, sterilizer, pot wash, sinks-adequate, drainage space, waste pipes grease traps etc. ix. Areas likely to create accident hazards-stairs, handrails, floor surfaces, spillages, use of step ladders, electric points guarding of dangerous machines, etc. 67

x.

Personnel-general observation, clean and tidy, clothing, general conduct of manager(ess), evidence of smoking, enquire regarding illnesses, availability of first aid kit and stock, enquire what training is given in food hygiene and accident preservation.

xi. General offer advice, stress importance of awareness of food poisoning, offer guidance leaflets and posters, introduce food hygiene courses, reiterate defects, and offer constructive suggestions for improvement.

UNIT IV
68

PAYMENT OF WAGES ACT, 1936 The Payment of Wages Act 1936 is meant for the benefit of industrial employees not getting very high wages and to safeguard their interest it provides against irregularities in payment of wages, withholding wages, delay in paying wages and making unreasonable deductions out of the wages. This Act ensures payment of wages in a particular form and at regular intervals. Definitions "Factory" means a factory as defined the Factories Act 1948 and includes any place to which the provisions of that Act have been applied "Wages" 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 of employment express or implied were fulfilled by payable to a person employed in respect of his employment or of work done in such employment and includes (a) any remuneration payable under any award or settlement between the parties or order of a court; (b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; 69

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law contract or instrument which provides for the payment of such sum whether with or without deductions but does not provide for the time within which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court; (2) the value of any house-accommodation or of the supply of light water medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government; (3) any contribution paid by the employer to any pension or provident fund and the interest which may have accrued thereon; (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment Applicability: This act applicable to all factories and establishments. Main Provisions 70

Wage Period: Maximum Wage Period should be one month. Time of Payment of Wages: Wages should be paid before the end of 7th day when employees less than 1000 10th day when employees more than 1000

Deductions from Wages: With Authorisation LIC Premium Postal PLI Premium Trade Union Subscription Contributions to Prime Minister Fund Without Authorisation Fines Period of absence from duty Damage or loss of goods Recovery advances / Loans Income Tax Provident Fund Order of Court Deduction for House Accommodation Deduction for amenities and services Payment to Cooperative Societies

Maximum deductions should not exceed: When whole or part of the deductions are meant to Cooperative Society - 75 % of wage In other cases - 50% of wages. Penalties Sl.No 1 Penalty Contravention of any provision of the Act Fine of Deductions for fines, absence from duty and damage or loss, for services rendered and 2 payment to cooperative societies Contravention of any provision of the Act Fine which may extend upto Offence

200/- which may

regarding Time of payment of wages and extend upto 1000/-

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regarding wage period and wages in current 3

500/-

coins/notes and display of abstract of the Act Fails to maintain registers and records, For each offence fine of neglects furnishing of information, furnishes 200/- which may extend wrong information. upto 1000/-

PAYMENT OF WAGES ACT, 1936 Applicability of Act Factory industrial Establishment Tramway service or motor transport service engaged in carrying passengers or good or both by road for hire or reward. Air transport service Dock, Wharf or Jetty Inland vessel, mechanically propelled Mine, quarry or oil-field Plantation Workshop or other establishment etc. Time of payment of wages The wages of every person employed is paid when less than 1000 persons are employed shall be paid before the expiry of the 7th day of the following month and When more than 1000 workers before the expiry of the 10th day of the following month. Sec. 5

Object of the Act To regulate the payment of wages of certain classes of employed persons

Coverage of Employees Drawing average wage upto Rs.6500 pm as amended w.e.f. 6.9.05.

Wages to be paid in current coins or currency notes All wages shall be paid in current coins or currency notes or in both. After obtaining the authorization, either by Cheque or by crediting the wages in employees banks Account Sec. 6

Fines as prescribed by Not to imposed unless the employer is given an opportunity to show cause To record in the register Sec.8 Deductions for service rendered: When accommodation amenity or service has been accepted by the employee. Sec.11

Deduction made from wages Deductions such as, fine, deduction for amenities and services supplied by the employer, advances paid, over payment of wages, loan, granted for house-building or other purposes, income tax payable, in pursuance of the order of the Court, PF contributions, cooperative societies, premium for Life Insurance, contribution to any fund constituted by employer or a trade union, recovery of losses, ESI contributions etc.etc. Sec. 7

Deduction for absence from duties for unauthorized absence Absence for whole or any part of the day If ten or more persons absent without reasonable cause, deduction of wages upto 8 days. 72

Deduction for damage or loss For default or negligence of an employee resulting into loss. Show cause notice has to be given to the employee. Sec.10

On contravention of S.5 (except sub-sec.4), S.7, Fine not less than Rs.1000, which may extend to S.8 (except Ss.8), S.9, S.10 (except Ss.2) and Rs.5000. On subsequent conviction fine not less Secs.11 to 13. than Rs.5000, may extend to Rs.10, 000. On contravention S.4, S.5 (4), S6, S.8 (8), S.10 (2) or S.25 fine not less than Rs.1000. may extend to Rs.5000. On subsequent On conviction fine not less. For failing to maintain registers or records; or Willfully refusing or without lawful excuse Fine which shall not be less than Rs.1000 but may extend to Rs.5000 On record conviction neglecting to furnish information or return; or fine not less than Rs.5000, may extend to Willfully furnishing or causing to be furnished Rs.10, 000. any information or return which he knows to be For second or subsequent conviction, fine not false or less than Rs.5000 but may extend to Rs.10,000 Refusing to answer or willfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act. Willfully obstructing an Inspector in the discharge of his duties under this Act; or Refusing or willfully neglecting to afford an Fine not less than Rs.1000 extendable Inspector any reasonable facility for making Upto Rs.5000 On subsequent conviction fine not less than Rs.5000 may extent to Rs.10,000 any entry, inspection etc. Willfully refusing to produce on the demand of an inspector any register or other document kept in pursuance of this Act; or preventing any person for appearance etc. On conviction for any offence and again guilty Imprisonment not less than one month of Contravention of same provision. extendable upto six months and fine not less than Rs.2000 extendable upto Rs.15000. Failing or neglecting to pay wages to any employee Additional fine upto Rs.100 for each day.

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THE MINIMUM WAGES ACT ,1948 The Minimum Wages act aims at making provision for statutory fixation of Minimum rates of wages in a number of industries. This act aims to prevent exploitation of labour by payment of wages which are necessary for normal and reasonable need of a workmen and his family.

Applicability of Act This Act is applicable to all employments described in the Act i.e. minimum Wages have to be paid to all the employees of the employments described in the Act

Definition "Employer" means any person who employs whether directly or through another person or whether on behalf of himself or any other person one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act. "Wages" means all remuneration capable of being expressed in terms of money which would if the terms of the contract of employment express or implied were fulfilled be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance but does not include (i) the value of -

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(a) any house accommodation supply of light water medical attendance or (b) any other amenity or any service excluded by general or special order of the appropriate government; (ii) any contribution paid by the employer to any person fund or provident fund or under any scheme of social insurance; (iii) any traveling allowance or the value of any traveling concession; (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge;

"Employee" means any person who is employed for hire or reward to do any work skilled or unskilled manual or clerical in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out-worker to whom any articles or materials are given out by another person to be made up cleaned washed altered ornamented finished repaired adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out-worker or in some other premises not being premises under the control and management of that other person; and also includes an employee declared to be an employee by the appropriate government; but does not include any member of the Armed Forces of the Union. Main Provisions of the Act Fixing Minimum Rates of Wages Appropriate Government shall fix minimum rates of wages for all Review of Minimum wages The appropriate Government shall review

employments specified in the Schedule of the Act the minimum wages at such intervals as it may deem fit. However, such a review shall be done before Five years from date of fixing minimum wages. 75

Wage period The Minimum wages may be fixed for different wage periods like By the Hour, By the Day, By the month, or By other larger wage period

Different Minimum Wages may be fixed by the Government for : Different employments (specified in the schedule) Different classes (e.g. skilled, unskilled, semis skilled, etc.) of work in Adults, adolescents, children and apprentices Different localities.

the same employment

Minimum rates of Wages fixed by the Government may consist of Basic + Special Allowance ( which varies with the cost of living index) Basic + Cash value of concessional supply of materials like food, An All inclusive rate which includes Basic + Cost of Living Allowance

clothes, etc + Cash value of concessional supply of materials

Fixing minimum Rates of Wages For fixing Minimum rates of wages, the Government may : 1. Publish its proposals in the official gazette asking from comments from the affected parties, Or. 2. Constitute committees/sub-committees for the purpose The committees/sub-committees and advisory boards constituted by the Government consist of equal number of members of :

76

Employers, Employees and Independent persons

Wages in Cash The wages have to be paid in Cash Only. However, permission can be taken from the government where payment of wages in kind when the same is as per custom or concessional supply of materials is made to the employees Deductions from Minimum Wages Deductions from Minimum Wages like PF, ESI, Advances , etc ( as mentioned in Payment of Wages Act 1936) are permitted. Wages to workman who works less than normal working day In such cases Full Wages for normal days work have to be paid to workman. However, a workman is not entitled to wages for a full normal working day when he is unwilling to work even though work is made available by the employer.

Penalty: Offence Contravention of Minimum Wages Act by employer Payment of less than Minimum wages to employee Imprisonment which may extend upto 6 Months or fine which may extend upto 500/- or Both 77 Punishment Fine which may extend upto

500/-

MINIMUM WAGES ACT, 1948

Object of the Act To provide for fixing minimum rates of wages in certain employments

Fixation of Minimum Rates of Wages The appropriate government to fix minimum rates of wages. The employees employed in para 1 or B of Schedule either at 2 or either part of notification u/s 27. To make review at such intervals not exceeding five years the minimum rates or so fixed and revised the minimum rates. Government can also fix Minimum Wages for Time work Piece work at piece rate Piece work for the purpose of securing to such employees on a time work basis Overtime work done by employees for piece work or time rate workers. Sec. 3

Minimum Rates of Wages Such as Basic rates of wages etc. Variable DA and Value of other concessions etc. Sec. 4

Overtime To be fixed by the hour, by the day or by such a longer wage-period works on any day in excess of the number of hours constituting normal working day. Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (1 times or for agriculture labour) Sec. 5

Payment of Minimum Rates of Wages Employer to pay to every employee engated in schedule employment at a rate not less than minimum rates of wages as fixed by Notification by not making deduction other than prescribed. Sec.12

Procedure for fixing and revising Minimum Rates of Wages Appointing Committee issue of Notification etc. Sec. 5

Composition of Committee Representation of employer and employee in schedule employer in equal number and independent persons not rd exceeding 1/3 or its total number one such person to be appointed by the Chairman. Sec. 9

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Fixing Hours for Normal Working Shall constitute a normal working day inclusive of one or more specified intervals. To provide for a day of rest in every period of seven days with remuneration. To provide for payment for work on a day of rest at a rate not less than the overtime rate. Sec. 13 Wages of workers who works for less than normal working days Save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day. Sec.15

Wages for two class of work Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, wages at not less than the minimum rate in respect of each such class. Sec. 16

Maintenance of registers and records Register ofFines Form I Rule 21(4) AnnualReturns Form III Rule 21 (4-A) Register for Overtime Form IV Rule 25 Register ofWages Form X,Wages slip Form XI,Muster Roll Form V Rule 26 Representation of register for three year Rule 26-A Sec. 18

M inimum time rate wages for piece Claims by employees work To be filed by before authority constituted under the Act Not less than minimum rates wages within 6 months. as fixed . Compensation upto 10 times on under or non-payment of Sec. 17 wages Sec. 16

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PENALITIES

Offence For paying less than minimum rates of wages

Punishment Imprisonment upto 6 months or with fine upto 500/Imprisonment upto 6 months or with fine upto 500/-

Sec. 20

For contravention of any provisions pertaining to fixing hours for normal working day etc.

THE PAYMENT OF BONUS ACT, 1965 Objectives An Act to provide for the payment of Bonus to persons in certain establishments on the basis of profits, production or productivity. Extends to the whole of India.

Scope and Coverage Sec 1(3), Sec 1(5), Sec 3 Applies to every establishment wherein 20 or more are employed The Appropriate Govt. shall apply the Act to any other establishment, including a factory to which the Factories Act, 1948 applies, wherein less than 20 workers are employed provided the number of persons employed is not less than 10.

Employees Entitled-Sec 1(3), Sec 32

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Administrative authority Central and State Govts Definitions a. Wages or salary Sec2 (21) b. Allocable surplus-Sec 2(4) Salient Provisions i. Calculation of Bonus Sec 4,5,6,7 a. Computation of bonus as per Schedule I to IV of the Act. b. Adjust any interim bonus paid while making payment of the final bonus. ii. Minimum Bonus-Sec 10,13,14 Minimum: 8.33% of salary/wages iii. Maximum Bonus-Sec 11 Maximum 20% of salary/wages iv. Bonus on Arrears of Wages-Sec 19 v. Mode and time for payment of bonus vi.Set On and Set Off-Sec 15 vii. Deduction permissible from bonus Sec-17, 18 viii. Forfeiture of Bonus-Sec 9 ix. Bonus linked with productivity/production-Sec 31A x. Contracting out is void-Sec 31A xi. Bonus in case of New establishment (seven years) -Sec 16 For calculating the number of working days

81

i. ii. iii. iv.

the days for which the worker has been laid off the days he has been on leave with pay the days he has been absent due to temporary disablement caused by an

employment injury the days a woman employee has been on maternity leave shall be taken in to account.

Eligibility to Bonus a) employee whose salary/ wages does not exceed 10000 per month b) who has worked in the establishment for not less than 30 days c) Not disqualified to claim bonus due to fraud, theft or any other misconduct d) Bonus of very person drawing salary between 3500/- and 10000/- per month shall be calculated as if his salary were Obligations of Employers-Sec 26,27 Rights of Employers-Sec 9,17,18 Rights of Employees-Sec 23 Offences and penalties-Sec 28,29 Disputes on Bonus The Bonus Act does not provide for any machinery to resolve disputes relating to bonus. For this, the Industrial Dispute Act shall be referred to. 3500 pm

82

PAYMENT OF BONUS ACT, 1965

Applicability of Act Every factory where in 10 or more persons are employed with the aid of power or An establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year

Establishment Establishment includes Departments, undertakings and

branches, etc.

Salary or wages includes dearness Income taxes and direct taxes as allowance but no other payable. allowances e.g. overDepreciation as per section 32 of time, house rent, Income Tax Act. incentive or Development rebate, investment commission. or development allowance. Disqualification & Deduction of Bonus Sec.2 (21) Sec.5 On dismissal of an employee for Fraud; or riotous or violent behavior while on the premises of the establishment; or theft, misappropriation or sabotage of any property of the establishment or Misconduct of causing financial loss to the Employer to the extent that bonus can be deducted for that year. Secs. 9 & 18.

Computation of available surplus

Components of Bonus

Separate establishment If profit and loss accounts are prepared and maintained in respect of any such department or undertaking or branch, then such department or undertaking or branch is treated as a separate establishment. Sec.3

83

Computation of gross profit For banking company, as per First Schedule. Others, as per Second Schedule Sec.4

Eligibility of Bonus An employee will be entitled only when he has worked for 30 working days in that year. Sec. 8

Payment of Minimum Bonus 8.33% of the salary or 100 (on completion of 5 years after 1st Accounting year even if there is no profit) Sec.10

Time Limit for Payment of Bonus Within 8 months from the close of accounting y ear. Sec. 19

Set-off and Set-on As per Schedule IV. Sec. 15

Eligible Employees Act not applicable to certain employees of LIC, General Insurance, DockYards, Red Cross, Universities & Educational Institutions, Chambers of Commerce, Social Welfare Institutions, Building Contractors, etc. etc. Sec.32. Employees drawing wages upto 3500 per month or less. For calculation purposes 2500 per month maximum will be taken even if an employee is drawing upto Rs.3500 per month. Sec.12 Note: The proposal to enhance the existing ceiling of 3500 is under active consideration by the Govt.

Maintenance of Registers and Records etc. A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in form A. A register showing the set-on and set-off of the allocable surplus, under section 15, in form B 84 A register showing the details of the amount of bonus due to each of the employees, the deductions under section 17 and 18 and the amount actually disbursed, in form C.

PENALTY

For contravention of any provision of the Act or the Rule

Upto 6 months or with fine upto Sec.28

1000.

THE WORKMENS COMPENSATION ACT 1923 The passing of Workmens Compensation Act in 1923 was the first step towards social security of workmen. The theory of this act is that the cost of product should bear the blood of the workman. This Act provides compensation to certain classes of workmen by their employers for injury, which may be suffered, by the workmen as result of an accident during the course of employment. Object To provide Compensation to Workmen for accidental injury and occupational diseases arising during and in the course of employment. Applicability of Act This Act is applicable to all employments in which the ESI Act is not applicable. Definitions "Dependent"

85

means any of the following relatives of a deceased workman, namely :- (i) a widow, a minor legitimate or adopted son, and unmarried legitimate or adopted daughter, or a widowed mother; and (ii) if wholly dependent on the earnings of the workman at the time of his death, a son or a daughter who has attained the age of 18 years and who is infirm; (iii) if wholly or in part dependent on the earnings of the workman at the time of his death, (a) a widower, (b) a parent other than a widowed mother, (c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or illegitimate or adopted if married and a minor or if widowed and a minor, (d) a minor brother or an unmarried sister or a widowed sister if a minor, (e) a widowed daughter-in-law, (f) a minor child of a pre-deceased son, (g) a minor child of a pre-deceased daughter where no parent of the child is alive, or (h) a paternal grandparent if no parent of the workman is alive. Explanation : For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause (iii), references to a son, daughter or child include an adopted son, daughter or child respectively; "employer" includes any body of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer, and, when the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, means such other person while the workman is working for him;

86

"wages" includes any privilege or benefit which is capable of being estimated in money, other than a travelling allowance or the value of any travelling concession or a contribution paid by the employer a workman towards any pension or provident fund or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment;

"workman" means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer's trade or business) who is - (i) a railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II.

Disablement

Total disablement
Incapacitates workman for all work which he was capable of doing at the time of accident

Partial disablement

Temporary
Reduces earning capacity of workman in any employment in which he was engaged at the time of accident

Permanent
Reduces earning capacity of workman in every employment in which he was engaged at the time of accident

87

Main Provisions of the Act Injury / Diseases arising out of and in course of employment are payable The term arising out of and in the course of employment means that Compensation is payable only in those injury/diseases where the employment is the immediate and proximate cause of the said injury/disease. In other words, the injury/disease would not have occurred had the workman not been employed in the particular employment Compensation payable The Workmens Compensation payable as per the act is as under :

S.N 1

Description Death due to injury

Compensation 50% of wages * Relevant factor OR 80,000/- , whichever is more

2 3

Permanent total disablement due to injury Permanent Partial disablement due to injury

60%

of

wages

Relevant

factor

OR

90,000/- , whichever is more % of compensation as is payable in (ii) or % of compensation proportionate to loss of earning capacity 25% of wages paid half monthly Occupational disease to be treated as injury by accident and compensation as applicable in the cases of injury are payable

4 5

Temporary Disablement Occupational disease

Following points are to be noted in calculation of compensation

a)

Wages to be actual or Max 4000/- per month.

b) Relevant factor are given in Schedule III of the Act c) Employee not eligible for compensation when he/she has filed a Civil Suit against the employer.

88

Compensation not payable: Compensation under this Act is not payable when The disablement due to injury is less than 4 days The employee was under the influence of drugs/alcohol at the time of Workman willfully disobeys any safety rule Workman willfully removes/disregards any safety guard/ equipments Workman has filed a Civil suit against the employer for claim of Workman has refused to get himself medically examined cost of which

accident

compensation. is borne by the employer.

Payment of Compensation The Compensation payable under the Act is to be made by deposit to the Commissioner of Workmens Compensation who will distribute the same to workmen or his dependents. However, amount equal to 3 months wages can be paid directly to the dependents in cases of death of workman, provided the said amount is less than the total compensation payable to workman.

Report of death and serious bodily injury should be given within 7 days of the death/ serious bodily injury to the Commissioner of Workmens Compensation Medical Examination The employer should get the medical examination of the workman who has made a claim for compensation, within 3 days of receipt of claim.

89

Penalties Offence Whoever fails to maintain notice book or send information /report to Commissioner Punishment Fine which may extend upto

5000/-

90

WORKMENS COMPENSATION ACT, 1923

Applicability All over India Sec.1

Coverage of Workmen All workers irrespective of their status or salaries either directly or through contractor or a person recruited to work abroad. Sec.1 (3)

Amount of compensation Where death of a workman results from the injury An amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor on an amount of eighty thousand rupees, whichever is more. Where permanent total disablement results from the injury. An amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of ninety thousand rupees, whichever is more Procedure for calculation Higher the age Lower the compensation Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman. Example: In case of death. Wages 3000 PM Age 23 years Factor as schedule IV Rs.19.95 Amount of compensation Rs.329935 In case of total disablement Rs.395910. Sec. 4

Employers liability to pay compensation to a workman On death or personal injury resulting into total or partial disablement or occupational disease caused to a workman arising out of and during the course of employment. Sec.3

When an employee is not liable for compensation In respect of any injury which does result in the total or partial disablement of the workman for a period exceeding three days. In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to The workman having been at the time thereof under the influence of drink or drugs, or Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or Willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman. Sec.3 (a) & (b) 91

Notice Accident As soon as Practicable Sec. 10

Wages When the monthly wages are more than 4000 per month it will be deemed 4000. Sec.4 Exh.b

Report of accident Rule 11 Form EE Report of fatal Accident and Serious Injury within 7 days to the Commissioner (not application when ESI Act applies). Sec.10B

Bar upon contracting out Any workman relinquishing his right for personal injury not permissible. Sec.14

PENALTY

In case of default by employer Deposit of Compensation

50% of the compensation amount + interest to be paid to the workman or his dependents as the case may be. Within one month with the Compensation Commissioner Sec.4A

92

THE EMPLOYEES STATE INSURANCE ACT 1948 The Employees State Insurance Act is a piece of social security legislation conceived as a means of extinction of the evils of society, namely disease, dirt, ignorance and indigence. The object of this Act is to secure sickness, maternity, disablement, and medical benefit to employees and dependants benefits to the dependants. employees. Application In the first instance, it shall apply to all factories (including factories belonging to Government) other than seasonal factories. Definition Factory where on ten or more employed and being carried out the Manufacturing activity with the aid of power or where on 20 or more persons employed and being carried out the Manufacturing activity without aid of power. These benefits are secured by financial contributions to the Scheme by employers and

Employee means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies Family means A Spouse A minor Legitimate or adopted child A child who is wholly dependent till he or she attains age of 21 yrs An Unmarried daughter A child who is in firm by reason of any physical or mental abnormality Dependent parents Wages all remuneration paid or payable but does not include PF & Gratuity payable of the discharge 93

Employment Injury means A personal injury to an employee caused by accident or an occupational disease arising out of and in the course of employment "Dependant" means any of the following relatives of a deceased insured person, namely :- (i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter; (ia) a widowed mother; (ii) if wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of eighteen years and is infirm; (iii) if wholly or in part dependent on the earnings of the insured person at the time of his death, - (a) a parent other than a widowed mother, (b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or adopted or illegitimate if married and a minor or if widowed and a minor, (c) a minor brother or an unmarried sister or a widowed sister if a minor, (d) a widowed daughter-in-law, (e) a minor child of a pre-deceased son, (f) a minor child of a pre-deceased daughter where no parent of the child is alive, or (g) a paternal grand-parent if no parent of the insured person is alive; "Permanent partial disablement" means such disablement of a permanent nature, as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement.

94

"Permanent total disablement" means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement. Sickness a condition, which required medical treatment, attendance and necessitates abstention from work on medical grounds. Main Provisions Contribution: The sum payable to the contribution by the principal employer in respect of an employee and employer Employee Contribution is 1.75% Employers Contribution is 4.75% Contribution Period 1st April to 30th Sept 1st October to 31 March Standard Benefit: Means 50 % of contributed daily wages (Average of six months contributions)
st

Benefit Period 1st Jan to 30th June of the year following 1st July to 31st Dec

BENEFITS Sickness Benefit: 91 days in any two consecutive benefit periods (50% of Standard Benefit)

Extended Sickness Benefit 124 days which may be extended to 309 days in case of TB, leprosy etc during a period of 3 yrs. (25% above the Std Benefit)

Enhanced Sickness Benefit

95

7 days for vasectomy and 14 days for tubectomy. (Twice Standard Benefit) No benefit for the first two days. (Waiting days) Maternity Benefit (Twice Std Benefit rate) 12 weeks (84 Days) 6 weeks in case of miscarriage (42 Days). Additional one month if necessary. Disablement Benefit (Employment Injury) In case of temporary disablement as long as incapacity lasts and incase of permanent disablement for life time. Dependents Benefit (70% of wage) Dependence benefits: The dependents, of insured person who died as a result of an employment injury, will be allowed dependents benefits by the ESI in the form of pension as follows : To the widow To the children Minimum benefit Medical Benefit An insured person and his dependents can receive medical benefit in the form of free full medical treatment at an ESI hospital, dispensary or clinic. Funeral Benefit 2500/- is paid to meet the funeral expenses of Insured person During life until remarriage, 3/5th of the full standard benefit rate Till they attain the age of 18, 2/5 th of the standard benefit rate. 14 per day.

NOTICE OF INJURY: The insured employee who sustains a employment injury should give a notice of the same to the employer or manager or supervisor etc., by means of an entry in the accident book or otherwise in writing or even orally. This is very important for claiming the disablement benefit.

96

OCCUPATIONAL DISEASES: If a person contracts any disease specified as an occupational disease in respect the industry, under the act, then such disease would be treated as an employment injury. ACCIDENT REPORT BY THE EMPLOYER: (a) In case of an accident in the establishment, the employer should prepare an Accident report in form No. 16 (in triplicate) and submit to the local office and the insurance medical officer. The third copy is the office copy. The report should be submitted within 48 hours in ordinary cases and immediately in death cases. (b) (c) The particulars of the accident should be entered in the accident In case of death of an insured person due to an accident, the body book in form no. 15. of the insured person shall not be disposed until the body has been examined by the insurance medical officer or if he is not able to arrive within 12 hours, by any other medical practitioner, who will arrange a post-mortem to be conducted before the body is disposed off. REGISTERS TO BE MAINTAINED : The following registers are to be maintained : a) b) c) register of employees accident book inspection book form 7 form 15

OFFENCES AND PENALTIES: Sl.no. 1 Offences Whoever, knowingly makes any false statement or representation for the purpose of (a) claim or increasing any benefit or payment allowable to him or (b) avoiding any payment payable to him. Penalties Imprisonment up to 6 months or fine up to or both 2000/-

97

a) failure to pay employees contributions deducted from the salary.

Imprisonment upto 3 years (minimum 1 year) and fine of 1000/Imprisonment upto 3 years (minimum 1 year) and fine of 5000/-

b) failure to pay contributions

c) deduction of any sum from or reduce wages of an employee on account of employers contribution. d) failure to submit any return or submission of false return

Imprisonment upto 1 year or fine upto 4000/- or both Imprisonment upto 1 year or fine upto 4000 or both Imprisonment upto 1 year or fine upto 4000/- or both. Imprisonment upto 1 year or fine upto 4000/- or both Imprisonment upto 5 years (minimum 2 years) and fine of 25000/-

e) obstruction of any inspector in allowing him to discharge his duties.

f) contravention of any other provision of the act or rules.

On every subsequent offence committed after conviction for the same offence being mentioned at 2 (a) or (b) above

98

On every subsequent offence committed after conviction for the same offence being any other offence.

Imprisonment upro 2 years and fine of 5000/-

LEVY OF INTEREST : Interest shall be payable @ 12% p.a. in respect of each day of default or delay in payment of contributions. DAMAGES FOR DELAY IN PAYMENT OF CONTRIBUTIONS AND OTHER AMOUNTS Sl.No. Period of delay 1 2 3 4 DISPUTE : A dispute arising under the act shall be decided by the ESI court (not by a civil Court), provided the employer deposits 50% of the dues claimed by the ESIC. APPEAL : An appeal shall be lie to the High court against order of ESI Court. The appeal should be filed within 60 days. Rate of damages

in % per annum upto 2 months 5 2 months and above but less than 4 10 months 4 months and above but less than 6 15 months 6 months and above 25

Accidents happening while traveling in employer's transport

99

(1) An accident happening while an insured person is, with the express or implied permission of his employer, traveling as a passenger by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if (a) the accident would have been deemed so to have arisen had he been under such obligation; and (b) at the time of the accident, the vehicle (i) is being operated by or on behalf of his employer or some other person by whom it is provided in pursuance of arrangements made with his employer, and (ii) is not being operated in the ordinary course of public transport service. (2) In this section "vehicle" includes a vessel and an aircraft

100

THE EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 The schemes of Provident Funds are meant to induce employees to save a portion from their present earnings for a rainy day. The object of the Act is to provide for institution of Provident Fund, Pension Fund and Deposit Linked Insurance Fund for employees in Factories and other establishments. Definitions "Basic wages" means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him but does not include: (i) the cash value of any food concession; (ii) any dearness allowance (that is to say all cash payments by whatever name called paid to an employee on account of a rise in the cost of living) house-rent allowance overtime allowance bonus commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; (iii) any presents made by the employer; "Employer"means: (i) in relation to an establishment which is a factory the owner or occupier of the factory including the agent of such owner or occupier the legal representative of a deceased owner or occupier and where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act 1948 the person so named; and

101

(ii) in relation to any other establishment the person who or the authority which has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager managing director or managing agent such manager managing director or managing agent; "Employee" means any person who is employed for wages in any kind of work manual or otherwise in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer and includes any person (i) employed by or through a contractor in or in connection with the work of the establishment; (ii) engaged as an apprentice not being an apprentice engaged under the Apprentices Act 1961 or under the standing orders of the establishment; Exempted Establishment An establishment which has been granted exemption from the operation of all or any of the provisions of any scheme or insurance scheme prescribed under the Act. Such exemption may be granted to the establishment or to any person or to any class of persons of the establishment. Applicability This Act is applicable to all factories and establishments were 20 or more employees are/were employed. The Act continues to be applicable even if the number of employees falls below 20.

102

Main Provisions of the Act The EPF and MP Act make provisions for 3 types of schemes. These schemes have been summarized as under EPF and MP Act

Provident fund (1952) SN 1 Particulars Objective Provident (EPF) To provide at 2 3 Salary ceiling Contribution of 4 Employee Contribution Employer the

Pension Scheme (1995) fund Pension Scheme(EPS) for To provide pension and of member

Deposit Linked Insurance (1976) Deposit Linked

Insurance (EDLI) for To provide for to insurance of employee his

lumpsum payment monthly time

retirement/death family The contribution to these schemes /fund is made on salary (Basic + DA) of 6500/- Per month. 12 % of Basic + Nil Nil

DA 3.67% of Basic + 8.33% of Basic + DA 0.5% of Basic + DA DA actual 541/Nil + 8.33% Any ( subject to max of Rs of + DA of Rs 6500) difference between 541/- (8.33% of basic Basic +DA and

5 6

ContributionCentral Govt. Voluntary contribution of employees

1.16% of Basic + DA

Nil Not Allowed

Allowed. However Not Allowed employer is not bound to contribute over and above the statutory

103

7 8

Returns Advances

requirements @ 9.5% per year No Fixed returns Allowed after Not Allowed membership of the time

NIL Not Allowed

prescribed period Benefits when At the time of At received by retirement or death of Advances For 1. house building, 2. marriage, 3. LIC premium 4. Education employee Types benefits

of For

death

while

in

retirement or death Pension on a) Retirement b) Disability c) Commutation Pension Upon Death of employee payable to: d) Widow e) Children f) Orphan g) Nominee pension

service An amount equal to average balance upto 35000/to max of + 25%of 1,00,000/of balance amount subject an is paid to dependents

10

Establishment to include all branches/departments All the branches and departments of establishment are included in the establishment for the purpose of this Act. Administration of Schemes The above schemes and funds are administered apply the provisions of the Act e.g. Central Provident Fund Commissioners Additional Central Provident Fund Commissioners Deputy Provident Fund Commissioners Regional Provident Fund Commissioners, etc by the Employees Provident Fund Organization (EPFO). The EPFO has appointed officers at various levels to further

104

This officers are also authorized to listen to any complaints regarding contribution, benefits , etc and may pass orders suitably. Protection against Attachment The amount standing to the credit of account of an member cannot be attached, assigned or charged by any order of any court. Employer not to reduce wages Employer cannot reduce wages of an employee by reason of his liability of contributing to the schemes under this Act. Penalties Sl Offence Penalty

No 1 Avoiding payment under this Act or Imprisonment which may extend upto 1 knowingly making false statement 2 Employer who contravenes charges year or Fine which may extend upto 5000/- or both in Imprisonment which may extend upto 3 and 10000/-

provisions regarding payment of year or Imprisonment I year +Fine administrative 3 contribution Contravention regarding payment of Imprisonment which may extend upto 1 inspection charges 4 Same offence is committed again year or Fine which may extend upto 5000/- or both Imprisonment which may extend upto 5 year and Fine of 25000/-

EMPLOYEES PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952 & THE SCHEMES

Eligibility Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment.

Applicability Every establishment which is factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed. 105 Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf. Any establishment employing even less than 20 persons can be

Payment of Contribution The employer shall pay the contribution payable to the EPF, DLI and Employees Pension Fund in respect of the member of the Employees Pension Fund employed by him directly by or through a contractor. It shall be the responsibility of the principal employer to pay the contributions payable to the EPF, DLI and Employees Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

Benefits Employees covered enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restricted circumstances like buying house, marriage/education, etc.) financial nest egg to which employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death. Other Benefits include Employees Pension Scheme and Employees Deposit Linked Insurance Scheme.

SCHEME

EMPLOYEE EMPLOYER S S Amount > 8.33% (in case where contributio n is 12% of 10%) 10% (in case of certain Establishments as per details given earlier) 0.5

CENTRAL GOVTS

Provident Fund Schem e

12%

NIL

Insurance Schem e

NIL

NIL

8.33% Pension (Diverted Clarification about Contribution Schem NIL 1.16% out the After revision in wage ceiling from 5000 to e6500 w.e.f. 1.6.2001 per month, of government will continue Provident to contribute 1.16% upto the actual wage of maximum 6500 per month towards Employees Pension Scheme. The employers share in the Pension Scheme will be Rs.541 w.e.f. 1.6.2001. Under Employees Deposit-Linked Insurance Scheme the contribution @ is required to be paid upto a 0.50% maximum limit of 6500. The employer also will pay administrative charges @ on maximum limit of 6500 whereas an 0.01% exempted establishment will pay inspection charges @ on the total wages paid. 0.005% Notes: The above clarification is given by taking wages upto a maximum of towards wage (basic+DA). 6500 Since an excluded employee i.e. drawing wages more than can also become member of the Fund and 6500 the Schemes on joint request and if, for instance, such an employee is getting per month, his share 10, 000 towards provident fund contribution will be 1200 e.g. 12% and employers share towards provident fund 106 contribution will be 659 and 541 towards Employees Pension Fund.

Damages Less than 2 months .@ 17% per annum .@22% per annum .@ 27% per annum

Two months and above but less than upto four months Four months and above but less than upto six months

Penal Provision Liable to be arrested without warrants being a cognizable offence. Defaults by employer in paying contributions or inspection/administrative charges attract imprisonment upto 3 years and fines upto 10, 000 (S.14). For any retrospective application, all dues

have to be paid by employer with damages upto 100% of arrears.

THE MATERNITY BENEFIT ACT, 1961 Women at the reproductive stage are exposed to special risks during pregnancy and child bearing, and mortality and maternal morbidity are factors which require special consideration. The Maternity benefit Act was passed to regulate the employment of

107

women for certain period before and after the child birth and to provide certain maternity and other benefits .

Definitions "wages" means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes (1) such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitled to; (2) incentive bonus; and (3) the money value of the confessional supply of food grains and other articles, but does not include (I) any bonus other than incentive bonus; (ii) over -time earnings an any deduction or payment made on account of fines; (iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and (iv) any gratuity payable on the termination of service; "Woman" means a woman employed, whether directly or through any agency, for wages in any establishment.

Applicability of Act This Act is applicable to all establishments and factories in which 10 or more persons are/were employed in the preceding 12 months. This Act is applicable to every establishment involved in equestrian, aerobatics and other performances, irrespective of the number of employees 108

This Act is not applicable to those establishments /factories were Employees State Insurance Act, 1948 is applicable.

Main Provisions of the Act Prohibition of employment of Women during certain periods No employer shall: Knowingly employ women during six weeks immediately following the Employ a woman in a work of arduous nature and which may interfere date of pregnancy/ miscarriage/ medical termination of pregnancy. with the pregnancy or normal development of foetus for a period of One month before pregnancy. Maternity Benefits The maternity benefits under this act are as follows : Eligibility A woman is eligible for maternity benefits when she has worked for atleast 80 days in the preceding 12 months from her date of expected delivery. Pay Employer shall pay Maternity benefit equal to Basic +DA+ Cash Allowances + Incentive Bonus for the period of absence to the women employee. Leave The woman employee is eligible to get maternity benefit for 84 days (i.e 12 weeks). Out of the 84 days , the period before delivery should be maximum 42 days Medical Bonus Employer should pay 250/- to the woman employee as Medical Bonus if no prenatal and post natal care is provided to the concerned woman employee free of charge Other Leaves (with wages as in maternity benefit) arising out of pregnancy

109

a) Miscarriage, Medical termination

6 weeks from day after pregnancy

Miscarriage, Medical termination of pregnancy b) Tubectomy 2 weeks from the day after Tubectomy c) Illness due to Pregnancy, Delivery One month

Nursing breaks.- Every woman delivered of a child who returns to duty after such delivery shall, in addition to the interval for rest allowed to her, be allowed in the course of her daily work two breaks of the prescribed duration for nursing the child until the child attains the age of fifteen months. Claim for Maternity benefit and Payment 1. A woman who is pregnant shall give a notice to the employer mentioning the following: Date from which she will be absent (not being earlier than 42 days from Maternity benefit to be paid to her or to her nominee However, if a woman employee was unable to give a Notice to the expected date of delivery)

employer when she was pregnant, she may do so as soon as possible after the delivery. 2. On receiving the notice, the employer shall make the payment to the female employee/ nominee within 48 hrs.

Prohibition for dismissal during absence due to Pregnancy 3. An employer cannot dismiss a female employee for absence who is availing maternity benefit. 4. Such a dismissal by the employer should not derive a female employee from claiming maternity benefits 5. However, an employer can deprive a female employee of the maternity benefit if the discharge is due to Gross misconduct.

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Leave for miscarriage.- In case of miscarriage, a woman shall, on production of such proof as may be prescribed, be entitled to leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage. Forfeiture of Maternity Benefits The female employee, who is availing Maternity benefit from her employer but works in some other establishment/factory, shall forfeit her claim to Maternity benefit.

Penalties Offence Punishment Dismissal of female employee for absence Imprisonment for 3 Months which may due to maternity Other provisions of the Act extend up to 1 year and fine of 2000/which may extend up to Rs 5000/Imprisonment which may extend up to 1 year or fine which may extend up to 5000/-

Object of the Act To protect the dignity of motherhood and the dignity of a new persons birth by providing for the full and healthy maintenance of the woman and her child at this important time when she is not working.

Conditions for eligibility of benefits Coverage of the Act BENEFIT ACT, 1961 MATERNITY Upon all women employees either employedWomen indulging directly or through contractor except domestictemporary of unmarried are women employees employed in mines, factories,eligible for maternity plantations and also in other establishments if thebenefit when she is State Government so decides. Therefore, if theexpecting a child and has State Government decides to apply this Act toworked for her employer women employees in shops and commercialfor at least 80 days in the establishments, they also will get the benefit of12 months immediately 111 this Act. Bihar, Punjab Haryana, W est Bengal,proceeding the date of her expected delivery Sec. 5. U.P., Orissa and Andhra have done so.

Cash Benefits Leave with average pay for six weeks before the delivery. Leave with average pay for six weeks after the delivery. A medical bonus of if the employer does not provide free medical care to the woman. 25 An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage, or premature birth. In case of miscarriage, six weeks leave with average pay from the date of miscarriage. Non Cash Benefits/Privilege Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if she asks for it. Two nursing breaks in the course of her daily work until the child is 15 months old. No discharge or dismissal while she is on maternity leave. No change to her disadvantage in any of the conditions of her employment while on maternity leave. Pregnant women discharged or dismissed may still claim maternity benefit from the employer. Exception Women dismissed for gross misconduct lose their right under the Act for Maternity : Benefit

Conditions for eligibility of benefits Ten weeks before the date of her expected delivery, she may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant. She should give written notice to the employer about seven weeks Leave for illnessof her before the date arising delivery that she will be absent for six weeks before and after her delivery. pregnancy etc. out of She should also name the person to whom payment will be made in case she can not take it herself. etc. She should take the payment for the first six weeks before she goes on A woman suffering from leave. She will get payment for the six weeks after child-birth within 48 hours of giving proofof illness arising our that she has had a child. pregnancy, delivery, She will be entitled to two nursing breaks of fifteen minutes each in premature birth of daily the course of her child work till her child is fifteen months old. (Miscarriage, medical Her employer cannot discharge her or change her conditions of service whileof pregnancy termination she is on maternity leave. or tubectomy operation) Leave for Miscarriage & Tubectomy Operation Sec. 5. be entitled, in addition to Leave with wages at the rate of maternity benefit, for a the period of absence period of six weeks immediately following the day of allowed to her leave with her miscarriage or her medical termination of wages at the rate of pregnancy. maternity benefit for a Entitled to leave with wages at the rate of maternity maximum period of one benefit for a period of two weeks immediately following month. the day of her tubectomy operation. Sec. 10 112

Prohibition of dismissal during absence of pregnancy Discharge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such a day that the notice will expire during such absence or to very her disadvantage. Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service. At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus, etc. Not barred in case of dismissal for cross misconduct. Sec.

Failure to Display Extract of Act Imprisonment may extend to one year or fine.

Forfeiture of maternity benefit If permitted by her employer to absent herself under the provisions of section 6 for any period during such authorized absence, she shall forfeit her claim to the maternity benefit for such period. For discharging or dismissing such a woman during or on account of her absence from work, the employer shall be punishable with imprisonment which shall not be less than 3 months, but it will extend to one year and will find, but not exceeding 5, 000. Sec. 18 THE PAYMENT OF GRATUITY ACT, 1972

Gratuity is a retirement benefit like Provident Fund or Pension. It is the payment which is intended to help an employee after his retirement. The general principle underlying 113

gratuity schemes is that by faithful service over along period the employees is entitled to a certain amount as retirement benefit. Thus, it is earned by an employee as a reward and meritorious service. Applicability: Every factory, Mine, Oil field, Plantation, Port, Railways, Company, shop establishment or educational institutions employing ten or more persons Definitions "Employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.

"Employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop - (i) belonging to, or under the control of, the Central Government or a State Government, a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or the Department concerned, (ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive office of the local authority, (iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person;

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"wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance Main Provisions Gratuity Eligibility Criteria: Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years. Thus for an employee to become entitled for the payment of gratuity, he must have rendered continuous service of at least 5 years. The completion of continuous service of 5 years is not necessary where the termination of the employment of an employee is due to his death or disablement. Wages for calculation: Gratuity is calculated at the rate of 15 days wages for every completed year as if the month comprises of 26 days at the last drawn wages. Calculation for piece rated employee: At the rate of 15 days wages for every completed year on an average of 3 months wages

Calculation for seasonal employee: At the rate of 7 days wages for every completed year of service. Employee: All employees irrespective of status or salary. Qualifying period: On rendering of 5 years of service either on termination or on resignation or retirement. Entitlement: On completion of 5 years service except in case of death or disablement. Maximum ceiling: 10, 00,000/-

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Forfeiture of gratuity: Gratuity can be forfeited On termination of an employee for moral turpitude and riotous or disorderly behaviour Wholly or partly for willfully causing loss destruction of property, etc.,

Protection of Gratuity: Gratuity cannot be attached in execution of any decree. Penalties: Imprisonment for six months or fine upto 10,000 for avoiding to make payment by making false statement or representation. Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or rules.

Applicability Every factory, mine, oil field, plantation, Sec. port, railways, 1 company, shop, establishment or educational institutions employing 10 or more employees PAYMENT OFGRATUITY ACT, 1972

Sec. 2(e)

Sec. 2(s) 116

Employee All employees irrespective of status or salary Entitlement On completion of five years service except in case of death or disablement Qualifying period On rendering of 5 years service, either termination, resignation or retirement. Wages for Calculation @ 15 days wages for every completed year as if the month comprises of 26 days at the last drawn wages.

Sec. 1 Calculation Piecerated employee @ 15 days wages for every completed year on an average of 3 months wages Calculation Seasonal employee @ 7 days wages for every completed year of service.

Rule 4 Display of Notice On conspicuous place at the main entrance in English language or the language understood by majority of employees of the factory, etc.

Sec.6 Rule 6 Nomination To be obtained by employer after expiry of one years service, in Form F

Sec. 4(3)

Sec. 4(6) Forfeiture of Gratuity

Maximum Ceiling 10, 00,000

On termination of an employee for moral turpitude or riotous or disorderly behavior. Wholly or partially for willfully causing loss, destruction of property etc.

Sec.8 Rule 8

Rule 9

Rule 9 117

Recovery of Gratuity To apply within 30 days in Form I when not paid within 30 days

Penalties Mode of payment Cash or, if so desired, by Bank Draft or Cheque Imprisonment for 6 months or fine upto Rs.10, 000 for avoiding to make payment by making false state-ment or representa -tion. Imprisonment not less than 3 months and upto one year with fine on default in comply-ing with the provisions of Act or Rules.

Sec. 13 Protection of Gratuity Cant be attached in execution of any decree

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UNIT V

THE INDUSTRIAL DISPUTES ACT, 1947-I The Industrial Disputes Act , 1947 is a principle central legislation which provides for settlement of industrial Disputes. The main objective of the Act is to secure industrial

119

peace by preventing and settling industrial disputes through internal works committees or external machinery of conciliation (consisting of Conciliation Officers, Boards of Conciliation and Courts of inquiry) or compulsory adjudication(consisting of Labour Courts, Industrial Tribunals and National Tribunals) and through Voluntary arbitration. This Act also protects the service conditions of employees during pendency of Industrial disputes proceedings. It also prohibits employers and workmen from indulging in any unfair trade practices.

Applicability of Act This Act is applicable to all Industries in the country. Definitions

Industry means any business, trade, undertaking, manufacture or calling of the employees and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen. Industrial Disputes means any dispute or difference between : Employers and Employers or between Employers and Workmen or between Workmen and Workmen,

which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person Wages means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied were fulfilled, be payable to a workman in respect of his employment or of work done in such employment, includes i. ii. iii. such allowances including Dearness Allowance, value of any house accommodation, Traveling concession, commission but does not include; a) Bonus b) Employers contribution to EPF/ESI c) Gratuity on termination of service

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Main Provisions of the Act Industrial Disputes Any dispute concerned to an individual workman is not to be considered as an Industrial dispute. However, disputes connected to discharge, dismissal, retrenchment of an individual workman are treated as Industrial dispute.

Works Committee In case of any industrial establishment in which one hundred or more workmen are employed or have been employed, the appropriate Government by general or specific order require the employer to constitute a Works Committee. It is a Joint Committee with equal number of employers and employees representatives for discussion of certain common problems. Authorities under ID Act The authorities for settlement and investigation of Industrial Disputes as per the ID Act are as under: Sl.No 1 Dispute settlement machineries Authority Conciliation Officers generally the Regional Non judicial. Labour Commissioner of the respective region are appointed as conciliation officers. 2 The conciliation arrived at is known as settlement Conciliation Board consists of a --------do---------Chairman(Independent) 3 and 2/4 members representing all the parties equally Courts of Inquiry consists of one independent Quasi Judicial. person or if No. is more than 2 then one of them is appointed as Chairman. 4 Their decision is --------do---------known as Award Labour Courts consist of 1 person who has a) been judge of High court ,or b) been District Judge for atleast 3 years, or

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c) been a judge in other office for atleast 7 years, or d) Presided a Labour court under any State Act for 5 years 5 Industrial Tribunals consists of one person who --------do---------has a) been judge of High court ,or 6 b) been District Judge for atleast 3 years National Tribunals consists of I person who has --------do---------been a judge of High Court

Following points are to be noted in cases of Industrial Disputes. (i) Matters which are to be dealt with by the Labour Courts and Industrial tribunal are specified in Schedule 2 and Schedule 3 of the ID Act

Strikes and Lockouts 1. No person employed in a public utility service shall go on strike, in breach of contractb) without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or c) within fourteen days giving such notice or d) before the expiry of the date of strike specified in any such notice as aforesaid or e) during pendency of any conciliation proceedings before a conciliation officer and 7 days after conclusion of such proceedings. 2. No employer carrying on any public utility service shall lock-out any of his workmena) without giving them notice of lockout as hereinafter provided, within six weeks before lockingout or b) within fourteen days giving such notice or 122

c) before the expiry of the date of lock-out specified in any such notice as aforesaid or d) during pendency of any conciliation proceedings before a conciliation officer and 7 days after conclusion of such proceedings. General prohibition of strikes and lock-outs No workman who is employed in any establishment shall go on strike in breach of contract and no employer of any such workman shall declare a lock-out a) during the pendency of conciliation proceedings before a Board and seven days after the conclusion such proceedings b) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion such proceedings c) during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion such proceedings 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 Layoff, Retrenchment and closure These are the actions taken by an employer. The general conditions governing these are as under:

SN 1

Description Meaning

Layoff Failure, refusal or inability of an employer on account of shortage of coal, power, raw materials , or natural calamity to give employment to a workman whose name is borne on muster roll

Retrenchment Termination of employment of workman otherwise than a) Disciplinary action, b) Voluntary retirement, c)Superannuation d) Non renewal of contract and e) continued ill health of

Closure Permanent closing down of a place of employment or part thereof

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Prior Permission from government

Not necessary when no. of workmen less than 50. In other cases prior permission of Govt. necessary

workman Not necessary when no. of workmen is less than 50. In other cases prior permission of Govt. necessary 30 days when workmen is less than 50. In other cases 3 month 15 days wages for each completed year 1. Last in first out

Necessary in all cases

Notice to workmen

Copy of permission letter to govt. should be given to workmen 50% of Basic + DA to workman who is on rolls for atleast a year 1. Workman

60 days when workmen is less than 50. In other cases 90 days 15 days wages for each completed year 1. In case of financial difficulties compensation wages. 2. Closed establishment may be restarted in exceptional circumstances total should

Compensation

Other points

will if at

get he the

compensation establishment appointed day. 2.

should be followed for retrenchment 2. Retrenched workman should be given preference for reemployment

presents himself at the

not exceed 3 months

Workman not entitled to compensation if he refuses employment within radius of 5 miles from establishment

Penalties

124

Offence Penalty for layoff and without permission

Punishment Imprisonment which may extend upto 1 retrenchment month or Fine which may extend upto 1000/- or both 1 1 1 6

Imprisonment which may extend upto Penalty for closure without proper notice, month or Fine which may extend upto compensation and permission 1000/- or both Imprisonment which may extend upto Penalty or unfair labour practices month or Fine which may extend upto 1000/- or both Imprisonment which may extend upto Penalty for illegal strike / lock-out month or Fine which may extend upto 50/- or both Imprisonment which may extend upto Penalty for breach of settlement/award month or with Fine or both

Important Clarifications Industry has attained INDUSTRIAL DISPUTES ACT, 1947 wider meaning than defined except for domestic employment, covers from barber shops to big steel companies.Sec.2 (I ) Notice of Change Works Committee Joint Committee with equal number of employers and employees representatives for discussion of certain 21 days by an employer to workmen about changing the common problems. Sec.3 Conciliation is an attempt by a third party in helping to settle the conditions of service as 125 provided in Ivth Schedule. disputesSec.4 Adjudication Labour Court, Industrial Tribunal or National Sec.9A Tribunal to hear and decide the dispute. Secs.7, 7A & 7B

Object of the Act Provisions for investigation and settlement of industrial disputes and for certain other purposes.

Lay off & Payment of Compensation Conditions for Laying off Failure, refusal or inability of an employer to provide work due to Shortage of coal, power or raw material. Accumulation of stocks. Breakdown of machinery. Natural calamity. Sec.25-C

Right of a Workman during Pendency of Proceedings in High Court Employer to pay last drawn wages to reinstated workman when proceedings challenging the award of his reinstatement are pending in the higher Courts. Sec.17B Period of Operation of Settlements and Awards A settlement for a period as agreed by the parties, or Period of six months on signing of settlement. An award for one year after its enforcement.

Lay off Compensation Payment of wages except for intervening weekly holiday compensation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days in a year. Sec.25-C

Prior Permission by the Government for Retrenchment Prohibition of Strikes & Lock Outs When there are more Persons Bound by Settlement than 100 (in UP 300 or When in the course of more) workmen during conciliation proceedings etc., Prior Permission for Lay preceding 12 months. Without giving to the employer notice of strike, all persons working or joining off as hereinafter notice or Three months provided, within six weeks of proceedings before subsequently.During the pendencyWhen there are more than a before striking. wages thereto. Labour Court, Otherwise than in course of Tribunal or National during 100 Within fourteen days of giving such notice. Tribunal and to months, workmenconclusion of Form QA settlement upon the parties two after the proceeding 12 months. Before the expiry 15 the date of strike specified proceedings. Compensation @ of the settlement. such Sec.25-M in any wages. days such notice as aforesaid. During the pendency of arbitration proceedings Sec.18 Sec. 25-N During the pendency of any conciliation before an arbitrator and two months after the proceedings before a conciliation officer and conclusion of such proceedings, where a seven days after the conclusion of such notification has been issued under Subproceedings. Section(3A) of section 10A During the pendency of conciliation any period in which a settlement or During proceedings before a Board and seven days award is in operation, in respect of any of 126 after the conclusion of such proceedings. the matters covered by the settlement or award.

Power of Labour Court to give Appropriate Relief Labour Court/Industrial Tribunal can Modify the punishment of dismissal or discharge of workmen and give appropriate relief including reinstatement. Sec.11

Prohibition of unfair labour practice either by employer or workman or a trade union as stipulated in fifth schedule Both the employer and the Union can

Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one months wages on dismissal, discharge or punish a protected workman connected with the dispute. To seek approval of the authority by paying one months wages before altering condition of service, dismissing or discharging or punishing a workman. Sec.33

Retrenchment of Workmen Compensation & Conditions Workman must have worked for 240 days. Retrenchment compensation @ 15 days wages for every completed year to be calculated at last drawn wages One months notice or wages in lieu thereof. Reasons for retrenchment Complying with principle of last come first go. Sending Form P to Labour Authorities. Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one months wages on dismissal, discharge or punish a protected workman connected with the dispute. To seek approval of the authority by paying one months wages before altering condition of service, dismissing or discharging or punishing a workman. Sec.33 THE TRADE UNIONS ACT , 1926

Closure of an Undertaking 60 days notice to the labour authorities for intended closure in Form QA. Sec.25FFA Prior permission atleast 90 days before in Form O by the Government when there are 100 ore more workmen during preceding 12 months (in UP 300 or more workmen)Sec.25-O

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The law relating to the registration of trade unions and certain other matters is contained in the Trade Unions Act 1926. This Act was passed to regulate: a) Conditions governing the registration of Trade Unions b) Obligations imposed upon a registered Trade Unions c) Rights and Liabilities of registered Trade Unions Definition "Trade Union" means combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more Trade Unions; Provided that this Act shall not affect (c) Any agreement between partner to their own business; (i) Any agreement between an employer and those employed by him as to such employment; or (ii) Any agreement in consideration of the sales of the goodwill of a business or of instruction in any profession, trade or handicraft. Main Provisions of the Act Registration of trade union Any 7 or more members of a trade union may apply subscribing to the rules of the Trade Union for Registration of the said Union. a) Minimum Number of members - For registration, the minimum members should be 100 or 10% of workmen of establishment, whichever is less b) Applicants ceasing to be member The application for registration will not be invalid if less than 50% of members applying for its registration have ceased to be the member of the concerned trade union. c) Statement to Registrar - following information should be given to the Registrar of Trade Unions alongwith the application: Name, occupation and address of mebers making aplliocation 128

 Registration

Title, name, age, occupation and addresses of office bearers of Place of work of the Workmen (in case of trade union of Name of Trade Union and address of its head office.

trade union workmen)

The registrar on being satisfied that all requirements of the Trade Unions Act in respect of registration have been fulfilled, register a particular trade union and issue a Certificate of Registration to the concerned trade union. Certificate of Registration The Registrar registering a Trade Unio shall issue a certificate of registration in the prescribed form, which shall be conclusive that the Trade Union has been duly registered under this Act. Cancellation of Registration A certificate of registration of a Trade Union may be withdrawn o cancelled by the Registrar (a) On the application of the Trade Union to be verified in such manner as may be prescribed, or (b) If the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to exist or has willfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter, provision for which is required by Section 6: Provided that not less than two months previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union.

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Criminal conspiracy in trade disputes No officers or member\of a registered Trade union shall be liable to punishment under sub-section (2) of Section 120-B of the Indian Penal Code, in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in Section 15 unless the agreement is an agreement to commit an offence. Immunity from civil suit to certain cases (1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any [Note: Inserted by Act No.51 of 1970] or member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital of his labour as he wills. (2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortuous act done in contemplation or furtherance of a trade dispute by and agent of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to, express instructions given by the executive of the Trade Union. Legal status of a Trade Union A registered Trade Union shall be a Body corporate having perpetual succession and a common seal It can acquire , hold and sell properties It can file a suit and be sued in its name

Membership of Trade Union Minors who have attained 15 years of age can become members of a trade union subject to the rules of the concerned Trade Union. Disqualification for becoming Office bearers of Trade Union No member of a Trade Union can become Office bearer if he/she: 130

Has not attained 18 years of age, Convicted by a court for offence involving moral turpitude and sent for

imprisonment and 5 years have elapsed since his/her release. Registered office All correspondence to a Trade union may be addressed to its registered office. Any change in the above has to be informed to the Registrar within 14 days of such change. Change of Name

Any change in name of a registered trade union has to be informed in writing to Registrar by the secretary and 7 members of the Trade Union. Amalgamation of Trade Union

Any two or more registered Trade Unions may become amalgamated together as one Trade Union with or without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the votes of at least one-half of the members of each or every such Trade Union entitled to vote are recorded, and that at least sixty percent of the votes recorded are in favour of the proposal. Dissolution (1) When a registered Trade Union is dissolved, notice for the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar and shall be registered by him if he is satisfied the dissolution has been effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date of such regulation. (2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution and funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the member in such manner as may be prescribed.

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General Fund The Registered Trade Union may use the general fund for the following purposes: Salaries/allowances to office bearers Expenses for administration of trade union Conduct of Trade disputes on behalf of Trade Union Provision for education, social or religious beliefs of members or to the

dependents of deceased members, etc. Political Fund a separate political fund may be constituted by a trade Union for the following purposes: Payment of expenses for a candidate for election to a legislative body Holding of any meeting or distribution of any literature in support of Maintenance of any person elected to legislative body

such candidate The membership to such a political fund should be a) Voluntary for the Members b) Should not be disentitle a non-member of such fund to any benefits of the trade union. Returns A general statement, audited in the prescribed manner, may be sent to the Registrar. The statement shall be prepared in such form and shall comprise such particulars as may be prescribed.

Penalties

132

Offence Failure of office bearers to give notice or statement as required under Act

Punishment Fine of 5/-

Any person making willful False entry or Fine which may extend upto statement, alteration of rules

5/-

TRADE UNIONS ACT, 1926

133

Registration of trade Union Any 7 or more members of a trade union may, by subscribing their names to the rules of the trade union and its compliance. There should be at least 10%, or 100 of the work-men, whichever is less, engaged or employed in the establishment or industry with which it is connected. It has on the date of making application not less than 7 persons as its members, who are workmen engaged or employed in the establishment or industry with which it is connected.

Object of the Act To provide for the registration of Trade Union and in certain respects To define the law relating to registered Trade Unions

Registration of trade Union Prescribed form with following details.

Cancellation of Registration If the certificate has been obtained by fraud or mistake or it has ceased to exist or has willfully contravened any provision of this Act. If it ceases to have the requisite number of members. Sec. 10

Names, occupations and address of the members place of work. Address of its head office; and Names, ages, addresses and occupations of its office bearers. Sec. 5

No office bearer or member of a registered trade union shall be liable to punishment Not less than 10%, or 100 of the under sub section (2) of conspiracy u/s 120B workmen, whichever is less, of IPC in respect of Punishment made any agreement Penalties to a minimum of 7, Offence Subject between the members for the purpose of engaged or employed in an For making false entry in such object ofuptoTrade furthering any or Fine the Rs.500. On Establishments etc. any omission in general continuing default, additional Union. Sec. 9A statement required for fault, Rs.5 for each week (not Sec. 17 sending returns. exceeding Rs.50). U/s 31 U/s 32 For making false entry in the form. Supplying false information regarding Trade Union Fine upto Rs.500. Fine upto Rs.200. 134

Minimum requirements for membership of trade union

Criminal conspiracy in trade disputes