Maturity Model of Labour

Law Compliances
Project Guide: Mr. I D Guru
Summer Interns 2008: Manoj Kumar

2007HR023

TISS Mumbai

Level-2 Level-3
Level-0 Level-1

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Aditya Birla Group

Acknowledgement:
I would like to express my gratitude to my project guide Mr. I D Guru
(Group Head-ER), who gave me an influential support to complete this
project. I would like to thank Aditya Birla Group for giving me an
opportunity to work on this project. It was a great learning experience,
where I got the opportunity to observe labour law in practice, and prepare
a maturity model of labour law compliances.

Manoj Kumar

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Contents:

Acknowledgement

Introduction................................................................................................
............................4

Objectives..................................................................................................
.............................5

Methodology...............................................................................................
...........................6

Act
Descriptions..................................................................................................
....................7

 Factories Act, 1948

Maturity Model (labour law

compliances)...........................................................................11

 Safety, Health & Welfare

Learning’s..................................................................................................
...........................33

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Introduction:
Aditya Birla Group:

The Aditya Birla Group is India’s first truly multinational corporation.

Global in vision, rooted in values, the group is driven by a performance
ethic pegged on value creation for its multiple stakeholders. A US$ 28
billion conglomerate, with a market capitalisation of US$ 31.5 billion, it is
anchored by an extraordinary force of 100,000 employees belonging to
over 25 different nationalities. Over 50% of its revenue flow from its
overseas operations. The group’s products and services offer distinctive
customer solutions worldwide. Its 100 state of the art manufacturing units
and sectoral services span 20 country- India, Thailand, Laos, Indonesia,
Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary,
Brazil, Italy, France Luxembourg, Switzerland, Malaysia, and Korea.

The ABG is a dominant player in all of the sectors in which it operates.

Among these are viscose staple fibre, metals, cement, viscose filament
yarn, branded apparel, carbon black, chemicals, fertilizers, insulators,
financial services, telecom, retail, BPO and IT services.

The group has been adjudged the best employer in India and top 16 in
Asia by the Hewitt-economic Times and the wall street journal study 2007.

Beyond Business:

• Works in 3700 village

• Reaches out to 7 million people annually through the Aditya Birla

Centre for Community Initiatives and Rural Development,
spearheaded by Mrs. Rajashree Birla

• Focuses on health care, education, sustainable livelihood,

infrastructure and espousing social causes

• Runs 45 school and 18 hospitals

• Transcends the conventional barriers of business to send out a

message that “we care”

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Objectives:
Objective of this project is to formulate a maturity model for safety, health
& welfare under the factories act, 1948

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Methodology:

Getting the observation of all

Labour Law

Detailed study of Safety, Health & Welfare under

the Factories Act, 1948

Identifying various parameter for Safety,

Health & Welfare

Accessing various degree of compliances against

each parameters

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Act Descriptions:
FACTORIES ACT:

This is one of the earliest welfare legislation. The object is to secure to

workers health, safety, welfare, proper working hours and other benefits.
It was observed that Factories Act is enacted primarily with object to of
protecting workers employed in factories against industrial and
occupational hazards. The Act requires that workers should work in
healthy and sanitary conditions and for that purpose it provides that
precautions should be taken for safety of workers and prevention of
accidents. Incidental provisions have also been made.

First Factories Act was passed in 1880. Factories Act, 1948 was engrafted
in the Statute where emphasis had been on the welfare of the workers.
Factory Inspectors have been placed with heavy responsibility on them.
The Act undoubtedly is welfare legislation and can be termed to be a
complete code in itself. In this case, it was held that if a workman is found
working during period not notified beforehand, prosecution can be
launched.

'Factory' means any premises where 10 or more workers are working and
a manufacturing process is carried out with aid of power (20 if
manufacture is without aid of power). ‘Manufacturing process’ means
process of altering, repairing, ornamenting, finishing, packing, oiling,
washing, cleaning, breaking up, demolishing or otherwise treating or
adopting any article or substance. It also includes- pumping oil, water,
sewage or any other substance- Generating, transforming or transmitting
power- Composing, typing, printing- Constructing, repairing, breaking of
ships or vessels- Preserving articles in cold storage- Worker means a
person employed in any manufacturing process or cleaning or any work
incidental to manufacturing process. It includes persons employed
through contractor.

'Factory' should be licensed / registered with Chief Inspector of Factories

(termed as Director of Industrial Health & Safety in some States). The

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license / registration have to be renewed every year by paying prescribed
fees.

OCCUPIER OF THE FACTORY – ‘Occupier’ of a factory means the person

who has ultimate control over the affairs of factory. It includes a partner in
case of firm and director in case of a company. In case of Government
Company, 'occupier' need not be a director. In that case, person appointed
to manage affairs of the factory shall be ‘occupier’. Name of 'occupier' of
the factory should be informed to Factories Inspector. The 'occupier' will
be held responsible if provisions of Factories Act are not complied with.

Besides 'occupier', name of 'Manager' should also be informed. Any

change in name of Manager shall also be informed.

DUTIES OF OCCUPIER – The occupier shall ensure, as far as possible,

health, safety and welfare of workers while they are working in factory.

DUTIES OF EVERY MANUFACTURER – Every manufacturer or importer

of an article or substance in factory shall design it in such a way that it is
safe to use and carry. Adequate safety information about the article
should be given.

FACILITIES AND CONVENIENCES - The factory should be kept clean.

There should be arrangement to dispose of wastes and effluents.
Ventilation should be adequate. Reasonable temperature for comfort of
employees should be maintained. Dust and fumes should be controlled
below permissible limits. Artificial humidification should be at prescribed
standard level. Overcrowding should be avoided. Adequate lighting,
drinking water, latrines, urinals and spittoons should be provided.
Adequate spittoons should be provided.

WELFARE - Adequate facilities for washing, sitting, storing cloths when

not worn during working hours. If a worker has to work in standing
position, sitting arrangement to take short rests should be provided.
Adequate First aid boxes shall be provided and maintained.

FACILITIES IN LARGE FACTORIES - Following facilities are required to be

provided by large factories - Ambulance room if 500 or more workers are
employed. Canteen if 250 or more workers are employed. It should be
sufficiently lighted and ventilated and suitably located. Rest rooms /
shelters with drinking water when 150 or more workmen are employed.
Crèches if 30 or more women workers are employed. Full time Welfare
Officer if factory employs 500 or more workers. Safety Officer if 1,000 or
more workmen are employed.
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SAFETY - All machinery should be properly fenced to protect workers
when machinery is in motion. Hoists and lifts should be in good condition
and tested periodically. Pressure plants should be checked as per rules.
Floor, stairs and means of access should be of sound construction and free
form obstructions. Safety appliances for eyes, dangerous dusts, gas, and
fumes should be provided. Worker is also under obligation to use the
safety appliances. He should not misuse any appliance, convenience or
other things provided. In case of hazardous substances, additional safety
measures have been prescribed. [sections 41A to 41H]. Adequate fire
fighting equipment should be available. Safety Officer should be
appointed if number of workers in factory is 1,000 or more.

WORKING HOURS - A worker cannot be employed for more than 48

hours in a week. Weekly holiday is compulsory. If he is asked to work on
weekly holiday, he should have full holiday on one of three days
immediately or after the normal day of holiday. He cannot be employed for
more than 9 hours in a day. At least half an hour rest should be provided
after 5 hours. Total period of work inclusive of rest interval cannot be more
than 10.5 hours. A worker should be given a weekly holiday. Overlapping
of shifts is not permitted. Notice of period of work should be displayed.

OVERTIME WAGES - If a worker works beyond 9 hours a day or 48 hours

a week, overtime wages are double the rate of wages are payable. A
workman cannot work in two factories. There is restriction on double
employment. However, overtime wages are not payable when the worker
is on tour. Total working hours including overtime should not exceed 60 in
a week and total overtime hours in a quarter should not exceed 50.
Register of overtime should be maintained. An employee working outside
the factory premises like field workers etc. on tour outside headquarters
are not entitled to overtime.

EMPLOYMENT OF WOMEN - A woman worker cannot be employed

beyond the hours 6 a.m. to 7.00 pm. State Government can grant
exemption to any factory or group or class of factories, but no woman can
be permitted to work during 10 PM to 5 AM. Shift change can be only after
weekly or other holiday and not in between.

RECORD OF WORKMEN - A register (muster roll) of all workers should be

maintained. No worker should be permitted to work unless his name is in
the register. Record of overtime is also required to be maintained.

LEAVE - A worker is entitled in every calendar year annual leave with

wages at the rate of one day for every 20 days of work performed in the

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previous calendar year, provided that he had worked for 240 days or more
in the previous calendar year. Child worker is entitled to one day per every
15 days. While calculating 240 days, earned leave, maternity leave upto
12 weeks and lay off days will be considered, but leave shall not be
earned on those days. Leave can be accumulated upto 30 days in case of
adult and 40 days in case of child. Leave admissible is exclusive of
holidays occurring during or at either end of the leave period. Wage for
period must be paid before leave begins, if leave is for 4 or more days.
Leave cannot be taken for more than three times in a year. Application for
leave should not normally be refused. [These are minimum benefits.
Employer can, of course, give additional or higher benefits].

WAGES FOR OT AND LEAVE SALARY - 'Wages' for leave encashment

and overtime will include dearness allowance and cash equivalent of any
benefit. However, it will not include bonus or overtime.

CHILD EMPLOYMENT - Child below age of 14 cannot be employed. Child

above 14 but below 15 years of age can be employed only for 4.5 hours
per day or during the night. He should be certified fit by a certifying
surgeon. He cannot be employed during night between 10 pm to 6 am. A
person over 15 but below 18 years of age is termed as ‘adolescent’. He
can be employed as an adult if he has a certificate of fitness for a full
day's work from certifying surgeon. An adolescent is not permitted to work
between 7 pm and 6 am. There are more restrictions on employment of
female adolescent. Register of child workers should be maintained.

DISPLAY ON NOTICE BOARD - A notice containing abstract of the

Factories Act and the rules made there under, in English and local
language should be displayed. Name and address of Factories Inspector
and the certifying surgeon should also be displayed on notice board.

NOTICE OF ACCIDENTS, DISEASES ETC - Notice of any accident

causing disablement of more than 48 hours, dangerous occurrences and
any worker contacting occupational disease should be informed to
Factories Inspector. Notice of dangerous occurrences and specified
diseases should be given.

NO PUNISHMENT TO WELFARE OFFICER WITHOUT SANCTION - No

punishment can be imposed on Welfare Officer without prior sanction of
Chief Commissioner. However, a simple order of termination as per terms
of appointment is not a ‘punishment’ and such termination order is valid.

OBLIGATION REGARDING HAZARDOUS PROCESSES / SUBSTANCES -

Information about hazardous substances / processes should be given.
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Workers and general public in vicinity should be informed about dangers
and health hazards. Safety measures and emergency plan should be
ready. Safety Committee should be appointed.

Maturity Model:

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 Maturity Model of Labour Law
Compliances:
Level-
PARAMETE AWARDE
0 Level-1 Level-2 Level-3
RS D
Point- Point-5 Point-8 Point-10 POINTS
Safety
0

21. FENCING OF MACHINERY. - (1) In every factory the

following, namely, - (i) every moving part of a prime mover and
every flywheel connected to a prime mover, whether the prime
mover or flywheel is in the engine house or not;
(ii) the headrace and tailrace of every water-wheel and water
turbine;
(iii) any part of a stock-bar which projects beyond the head stock of
a lathe; and
(iv) unless they are in such position or of such construction as to
be safe to every person employed in the factory as they would be
if they were securely fenced, the following, namely - (a) every part
of an electric generator, a motor or rotary converter;
(b) every part of transmission machinery; and
(c) every dangerous part of any other machinery, shall be securely
fenced by safeguards of substantial construction which shall be
constantly maintained and kept in position while the parts of
machinery they are fencing are in motion or in use :
Provided that for the purpose of determining whether any part of
machinery is in such position or is of such construction as to be
safe as aforesaid, account shall not be taken of any occasion when
- (i) it is necessary to make an examination of any part of the
FENCING machinery aforesaid while it is in motion or, as a result of such
examination, to carry out lubrication or other adjusting operation
OF while the machinery is in motion, being an examination or
operation which it is necessary to be carried out while that part of
MACHINE the machinery is in motion, or
RY (ii) in the case of any part of a transmission machinery used in
such process as may be prescribed (being a process of a
continuous nature the carrying on of which shall be, or is likely to
be, substantially interfered with by the stoppage of that part of the
machinery), it is necessary to make an examination of such part of
the machinery while it is in motion or, as a result of such
examination, to carry out any mounting or shipping of belts or
lubrication or other adjusting operation while the machinery is in
motion, and such examination or operation is made or carried out
in accordance with the provisions of sub-section (1) of section 22.
(2) The State Government may by rules prescribe such further
precautions as it may consider necessary in respect of any
particular machinery or part thereof, or exempt, subject to such
condition as may be prescribed, for securing the safety of the
workers, any particular machinery or part thereof from the
provisions of this section.
Level- Level-1 Level-2 Level-3
0 Point-5 Point-8 Point-10
Point- _ _ Fencing Exist
0 Not
exist
22. WORK ON OR NEAR MACHINERY IN MOTION. - (1) Where
in any factory it becomes necessary to examine any part of
machinery referred to in section 21, while the machinery is in
motion, or, as a result of such examination, to carry out - (a) in a
case referred to in clause (i) of the proviso to sub-section (1) of
section 21, lubrication or other
Page 12adjusting
of 14 operation; or
(b) in a case referred to in clause (ii) of the proviso aforesaid, any
mounting or shipping of belts or lubrication or other adjusting
operation, while the machinery is in motion such examination or
operation shall be made or carried out only by a specially trained
adult male worker wearing tight fitting clothing (which shall be
 Defined =100%

Manage >80% &

d <100%

Initial >50 &

<80%

0 Levels <50%

Learning’s:
Technical learning’s:

The technicality of this project is all about the study & observations of
labour law and its practices. And then prepare a Maturity Model of Labour
Law Compliances; it is an actual technical learning’s which came up after
the completion of the project,
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Behavioural learning’s:

Behavioural learning is a very comprehensive term in an organizational

perspective, working as a summer interns in Group Human Resources at
Aditya Birla Group, I have learned many behavioural things first the
interaction with the students who came from the other Ivy League B-
schools. The second and most important learning’s is interactions with the
existing employees.

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