Management Industrial Safety and legislative Acts ME6G (II Shift) – Ashish Tiwari

Why Industrial Safety and Acts requires in Industry?

As accidents took place in industries which result in injuries to worker or may be damage the machine or may be damage to the property or the
environment. Due to accident there is loss of human resource (in terms of money), machine breakdown and person life. To prevent or avoid such
incident we (owner and workers both) have to take some safety measure. To follow up safety measure Indian government writes various
Industrial Act. Which we will study in details.

To prevent accident or making organization safe from accident, following Safety mgt. includes
1. Organization plant layout must be proper (space between machine, less material and man movement)
2. Proper education and training to the employees.
3. Safe process and operations

Need of Safety
1. To protect the employees from injuries or accident
2. To avoid the death or disablement of employees
3. To protect machines and equipment's from damage
4. To minimize wastage
5. To increases productivity

Causes of Accident
Definition: Accident is an unplanned sudden incident occurring to any employee or person, which may lead to injury or even death.

Causes of accident are as follows:

1. Technical Causes - accident occurs due to technical reasons.(like improper plant layout)
2. Manual Causes - accident occurs due to of negligence, carelessness and ignorance of worker.
3. Other Causes of Accident – not under our control ( e.g. natural calamities, storm, heavy rain, volcano)

1. Technical Causes – Accidents in the workplace may occur due to technical causes which includes
• Improper plant layout (Unsafe arrangement of Machine and equipments)
• Improper equipment and tools
• Poor material handling system
• Poor quality of safety devices
• Improper and insufficient training and information to employees
2. Manual Causes – Manual causes of accident in the workplace are the result of negligence, carelessness and ignorance of persons.
• Lack of knowledge of nay equipment or machine
• Improper use of equipment's
• Fatigue
• Non-use of safety devices
• Overconfidence of employees
• Age of employee.
• Negligence and carelessness in work.
• Wrong attitude towards work
3. Other Causes of Accident –
• Accident due to environment, natural calamities ( which may me unexpected and not anticipated)
• Natural calamities like earth quake, storm or rain
• Too low or high temperature at workplace
• Presence of dust, gas or fumes

Types of Industrial Accidents

a) Minor (Non-reportable) Accident – In minor accident the worker gets a minor injury which can recovered quickly ( a period of less than 48 hrs)
with provision of first aid and this will be not affect the work and earning capacity of the worker. There is no need to report of such accidents to the
management.

b) Major (Reportable) Accident - In major accident the worker can take more than 48 hrs for recovery. These are to be reported to the
management.

Mainly 3 types of Major Accident

1. Fatal Accident – In this accident worker or employee loses his/her life. It may be sudden death (on the spot death due to injury caused in
accident) . Such accident has to be reported to the management and supervisor has the responsibility to report such accident. In such cases
relatives of worker may get the compensation.
2. Non- fatal ( temporary or Permanent Disablement) Accidents may cause injury of the body so that a person become unable to function in a
normal way. It could be of temporary nature or permanent one.
Temporary Disablement – In this accident worker may lose shift or 48 hours or more time due to injury. After recovery worker can rejoin
his/her duties.
Permanent Disablement – such accident reduces the earning capacity of the worker permanently due to permanent disablement.
Worker may get the compensation for the loss but he cannot return to work.

Preventive Measures
In industry preventive measures should be taken to prevent accidents for
• To prevent injury or death of any employee
• To maintain good working environment
• To reduce operating and production cost
1. Safe workplace Layout : every worker get enough space for movement in the shop floor and there should be adequate passages, roads and
tracks so that there will not be any rush.
2. Proper working condition – Proper lighting and ventilation should be provided in the work area. Roof of work place should have sufficient height
and floor should be of non- skid type. Worker should have easy access to the safety switches and equipment's.
3. Proper material handling : Employees should have sufficient knowledge of material handling equipment to use then safety. Right equipment
should be used for the right job with proper care.
4. Proper selection of workers – All employees or worker should be selected properly with care. Improper selection of workers may cause
accidents in future
5. Use of personal protective devices – Everyone working at risky place should wear safety devices ( hard hats, ear protector, helmets, masks,
goggles, gloves, safety shoes)
6. Discipline at workplace.
7. Maintenance of machines, equipment – proper maintenance of all machines and equipment has to be carried out, at regular interval.
8. Proper training should be given to each employee regarding his work
9. Defective equipment should be replaced.
10. Inflammable material should be stored separately.
11. There should be sufficient fire extinguishers installed at proper places and employees should be trained to use the fire extinguishers

Industrial Legislation Acts

It has always been experienced that there is always a struggle, conflicts and clashes between employee and employer on the issues like wages and
facilities provided by the employer.

To handle this problem Indian Government sets some act like

1. Indian Factory Act (1949)
2. Workman compensation Act (1924)
3. Minimum Wages Act (1948)

Name Workman Compensation Act Indian factory Act-1948 Minimum Wage Act
Implemented 1924 1949 1988
Amendments (changes) 1962,1976 and 1986 1962,1976 and 1986
Objective to compensate employees to secure Health, safety, to ensure that worker should get
against accidents occurred in welfare, working hour minimum wages(salary) and are not
the industry premises and working condition any unfair regarding wages to the
of workers worker
Important Definitions (exam point of view)
Factory: A premises of 10 workers (if power is used) or a premises of 20 workers (if power is not used)

Occupier of factory: A person who has ultimate (all) control over affairs of factory. It includes a
• partner in case of firm and Director in case of company
It may be noted that if a factory is run by the company, then only the director of the company can be treated as occupier

Child: A person of age less than 15 years.

Adolescent – Any person who has completed 15 years of age but not completed 18 years.

Young person: A person who is either child or an adolescent.

Adult: Any person who is more than 18 years of age.

Worker – Worker means any person employed, directly or indirectly or through any agency whether for wages or not, in
any manufacturing process or any work connected with the manufacturing Process.

Power: any form of energy other than animal or husbandry input. For example: electrical or pneumatic.

Prime mover: any device which generates or provides power.

Machinery: Any device which transforms given power.

Manufacturing process: making, repairing, pumping oil, generating power, printing. Construction ships.

Weekly Hours :
• Adult : 48hrs /week
• Child: 45 hrs/week
• Women and children – not working during night(7p.m to 6 a.m)

Daily Hours: not more than 9 hours.

Interval of rest: Worker should get sufficient rest after 5 hours of continuous work.

Weekly holiday: once in a week. (any day)

In industry if 30 or more women works are employed then there should be provision of Crèches (nursery where babies
and young children are cared for during the working day).

Labor welfare officers: Appointment of labor welfare officers in the factory consisting of minimum 500 workers.

• Rest rooms/ Centers with drinking facility, if 150 or more workers are employed.
• Canteen, if 250 or more workers are employed.
• Full Time welfare officer, if 500 or more workers are employed.
• Ambulance room, if 500 or more workers are employed.
• Safety officer, if 1000 or more workers are employed.
• Crèches, if 30 or more women works are employed

Necessity of Acts
1. These acts helps to protect the right of the employee
2. To reduce the strike, conflicts between employee and employer
3. It helps to pay fair wages to the employees
4. For giving compensation to the victims of accidents
5. It gives a feeling of job security
6. It decides the job hours and breaks during work
 Indian Factory Act (1948) and came into force on April 1949.

Object of the factory Act is :

• To secure Health, Safety, Welfare, proper working hour and other benefits of workers.
• It provides that precaution should be taken for Safety of workers and preventions of Accidents

Meaning of Factory
Factory means
✓ Any premises, including the precincts thereof,
✓ In any part of which manufacturing process is carried on
✓ With or without the aid of power
✓ Provided that at least 10 or 20 persons respectively are employed or were employed
✓ On any day of the preceding 12 months

Duties of Occupier:
Facilities and Convenience
a) Factory should be kept clean
b) There should be arrangement to dispose off wastes and effluents
c) Ventilation should be adequate
d) Reasonable temperature for the comfort of employees should be maintained
e) Dust and fumes should be controlled below permissible limits
f) Overcrowding should be avoided
g) Adequate lighting, drinking water, toilets, and spittoons should be provided

Main Provisions of Indian Factory Act

A. Licensing and registration of factories – It is necessary to take permission in writing from State Govt. for construction or extension
of factory at a particular place. Application of approval contains purpose and drawing of the factory
B. Notice of occupation – Occupier of factory must submit the required information to Chief Inspector at least 15 days in advance.
The information contains name of factory, address, nature of manufacturing process, nature of power used, no. of works required,
name of factory manager.
C. Health
o Cleanliness ( white washing once in 14 month and paint once in 5 years.
o Disposal of wastes
o Ventilation and temperature
o Dust and fumes
o Artificial humidification
o Overcrowding ( minimum 4.2 cu. M space for each worker)
o Lighting
o Drinking water
o Latrines and urinals
o Spittoons ( located at convenient places to maintained clean and hygienic condition)
D. Safety
o Encasing and fencing of machinery
o Work on or near machinery in motion
o Employment of young person on dangerous machine
o Hoists and lifts
o Lifting machines, chains, ropes and lifting tackles.
o Pressure plants
o Floors, stairs and means of access to different places
o Pits, sumps, opening in floors
o Excessive weights
o Protection of eyes
o Precautions against dangerous fumes
o Explosive or inflammable dust, gas
o Precautions in case of fire
E. Welfare
o Washing facility
o Facilities for sitting
o First aid appliances
o Canteens
o Shelters, rest rooms and lunch rooms
 o Welfare officers

F. Working Hours
o Weekly hours – No adult worker works not more then 48 hrs in a week
o Weekly holidays – Sunday ( any single day in a week)
o Daily hours – of an adult worker should not exceed 9 hours
o Intervals for rest – rest after 5 continuous working hours
o Extra wages for over time
o Restriction on double employment
o Register of adult worker
o Restriction of employment of women ( 6am to 7pm)

Workman compensation Act: passed in 1924 and modified on 1962, 1976 and 1988
Aim: to compensate employees against accidents occurred in the industry.

Terminology:
Accident: any mishappening that causes injury to a person
Dependent: it means any of the relatives of an affected workers. e.g wife, widowed mother, minor son, unmarried
daughter etc.
Minor: any person of age not more than 18 years.
Partial disablement: Disablement which reduces the earning capacity of workman and it is temporary nature. i.e he/she
will able to work again after recovery e.g. Hand facture.
Total disablement: Disablement which reduces the earning capacity of workman for permanently and he will not able to
work in future (any kind of job). E.g loss of hand or leg.

Main provisions:
a. Objective is to define amount, distribution, claims, occupational diseases and compensation.
b. Employee gets Compensation under following cases
a. Employee is liable to get compensation if he gets Injured during working in industry and injury may be
Temporary, Permanent, Partial ,Total Disablement or Death.
b. Employee is liable to get compensation in case of occupational diseases – If an employee contracts any of
the specified occupational diseases and he has worked in the factory for a least 6 months, the employer
will have to pay compensation. Some of the occupational dieses are: Diseases caused by phosphorous or
its toxic compounds, radioactive substances etc.
c. Amount of compensation:
a. Death after injury:
i. Amount= (50% of monthly wages x Relevant factor) or 80,000Rs., the amount which is more is
compensated.
ii. Plus to this Rs. 2500 towards expenditure of funeral
b. Permanent total disablement:
i. Amount= (60% of monthly wages x Relevant factor) or 90,000Rs., the amount which is more is
compensated
c. Permanent partial disablement; proportional compensation is paid
d. Compensation is not included to :
a. Casual works ( due to carelessness , negligence and ignorance of worker during working)
b. Those employed in armed forces
c. Workers covered by ESI act
d. Workers under influence of drink and drugs
e. Disobedience of worker
f. Accident due to negligence towards safety supports.
e. The rate of compensation vary depending upon the injury results.
 f. Distribution of compensation: Payment of compensation for respective injury or death shall be deposited by the
employer with the commissioner. Employer should not make payment directly to the employee.
g. Notice of accident – A workman inured by the accident must give written notice to the employer which contains
date of accident and cause of accident as soon as possible.
h. Medical examination - the injured workman who has submitted notice should present himself for medical
examination if employer so desires. Such medical examination should be free of charge and within 3 days from the
time at which service of notice has been affected.
i. Appointment of commissioner – The State govt. may appoint any person to be commissioner for workmen’s
compensation for the areas specified in the notification

Minimum wages Act: passed in 1948 and applicable to entire country.

Aim:
• To fix minimum wages which employees must get
• To prevent exploitation (misuse) of the employees.

Definitions:
▪ Wages– Wages includes all remuneration payable to employee with respect to his employment.
Remuneration includes salary, allowances, overtime, gratuity, pension, incentives, and provident fund.
▪ Cost of living index number: the index ascertained and declared by the competent authority to be the cost of
living index number applicable to employees in employment.
▪ Strike – means refusal to work by employee or works body on demand of employer during Industrial dispute

Main provisions:
1. Fixation of minimum wages
• The government fixes the minimum wages
• The minimum wages consist of basic rate and special allowance(cost of living index)
• Rate of wages shall be revised after minimum 5 years of interval.
2. Procedure for fixing and revising minimum wages
a. Committee formation by appropriate govt. for wages fixation
b. These committee provide necessary inputs and suggestions
c. Declaration by government through official gazette.
3. Advisory Board: appointed by appropriate govt.
4. Composition of committees: In Committee equal number of members from employers and employees side ,
including chairman who is independent member and appointed by govt.
5. Claims:
a. Claims are possible under following cases:
i. Payment less than minimum wages
ii. Overtime rate isuues
iii. Payment of remuneration for days of rest
b. Period for application of claims is 6 months.
c. Three possibilities in results;
i.Employee’s stand is correct about minimum wages  Extra amount + compensation is [paid
ii.Other than minimum wages case of employee and his stand is correct  due amount + 10Rs. is paid
6. Penalties: 500Rs. and imprisonment