PRESENTED BY: K S S SANTOSH KUMAR SHASHANK SONI

WORKMAN V/S NON-WORKMAN

The Labour can be broadly classified in two main categories i.e. unorganized sector and organized sector. Unorganized sector includes small establishments and employment relationships of irregular duration and not regulated by any of the labour laws. For e.g. Artisans, petty shopkeepers, hawkers etc.

Organized sector is identified by specified/fixed operating conditions laid down by various labour law.
Workman derives certain rights and benefits from the various labour and industrial laws in India.

Non-workman is defined as employees carrying out managerial and administrative work and their terms of employment is essentially derived from the contract drawn up between the Company.

NON-WORKMAN IN PRIVATE SECTOR

Primarily, none of the Labour Laws apply to nonworkmen and service condition of such employees are governed by the respective contracts and general service conditions (if existing).

In case of termination, courts cannot reinstate the Employee.

Employee only has recourse for damages. Courts in India are conservative in awarding damages and punitive damages are rarely awarded.

HISTORY OF LABOUR LEGISLATION IN INDIA

Upto 1881, there was no law related to labour welfare in India. The Indian factories act was passed in the year 1881. After this a number of such laws were passed to regulate the working conditions in industries. Prior to this law, the workers were exploited for the following reasons: (i) Labour was available in abundance. They badly needed work to fulfil their requirements, basic needs cant wait for their satisfaction. The workers had no other source of livelihood. They only had their labour and skill to sell. (ii) Labour was ill educated, too poor and ignorant.

(iii) Industrialization and employment in factories was a comparatively new process for Indian workers and so it didnt provide them with much experience. Due to lack of contact with other parts of the world, they didnt know what rights their counterparts in other parts of the world enjoy. (iv) Workers feared their employers. They were compelled to work as directed by the employers who sometimes even used physical force to compel them. Even greater was the fear of retrenchment. (v) The entrepreneurs enjoyed greater proximity to political power circles. They were financially sound and so could twist the situation their way.

WORKING CONDITIONS

The workers had to work under miserable working conditions which can be termed as inhumane.

1. The work places were insufficient, there was no provision of drinking water, urinals, bathrooms, waiting rooms, canteens etc.

2. There was no provision for overtime payment. 3. Leave facility was not provided to workers. Deduction was made in their wages for the amount of leave taken. 4. In case of worker met an accident in the working hours, no compensation was paid to him

5. Women and children were made to work for long hours under unsafe and unhygienic conditions.

NEED OF INDUSTRIAL OR LABOUR LAWS

In modern industrial organisation, labour laws are necessary and their main aim is; (i) To save the workers from exploitation and to protect their rights: Government showed a human concern in passing these laws so that workers get their due rights and are not exploited.

(ii) To minimize and settle industrial disputes: These laws serve to improve relations among management and workers so that a peaceful atmosphere is created for maximum production.

(iii) To provide better and safe working conditions for the workers: Laws make sure that work, machines, equipment, tools and the environment of an industry is safe for the working of human beings.

(iv) To determine timely and justified payment of wages, incentives and compensation : Various labour laws provide that payment of wages is on a fair basis and that the wages are sufficient to meet the need of workers.

(iv) To provide security of job: In the service of a worker are to be terminated, laws provide for the compensation or any other monetarily benefit to be paid by the employer, failing which the worker can go in the court.

LABOUR WELFARE HAS THE FOLLOWING OBJECTIVES:

1) Labour welfare provides social comfort to employees. 2) It provides intellectual improvement of employees. 3) To develop sense of responsibility and belongingness among employees. 4) To ensures that the working conditions for employees are of higher standard. 5) To build stable work force.

6) To reduce absenteeism and labour turnover. 7) To make employees lives good and worth living. 8) To boost productivity and efficiency at the workplace. 9) To provide healthy and proper working conditions. 10) To ensure well being of employees and families.

INDUSTRIAL LEGISLATION AND LAWS

The laws framed by the Government for providing economic and social justice to the workers in industries are called Industrial laws or labour laws.

Industrial legislation can be divided into two categories: General legislation. Specific legislation.

1. 2.

1. General legislation: General legislation takes care of the general labour problems like social welfare, insurance and industrial disputes. 2. Specific legislation : Specific legislation looks after the work of specific industries like transport, mines, electricity generation, plantation, waste disposal etc.

CONSTITUTION OF INDIA AND LABOR

LEGISLATION FUNDAMENTAL RIGHTS 1) Article 14 Equality before law. 2) Article 15 Prohibition of discrimination on grounds of religion, race ,caste etc 3) Article 16 Equality of Opportunity in matters of public Employment 4) Article 17 Abolition of Untouchability RIGHT TO FREEDOM: Article 19 deals with the protection of certain rights regarding freedom of Speech etc.

RIGHT AGAINST EXPLOITATION 1) Article 21 : Right to life 2) Article 23: Prohibition of traffic in human beings and human labour. 3) Article 24 : Prohibition of Employment of children in factories. DIRECTIVE PRINCIPLES OF STATE POLICY 1) Article No. 38 : State to secure a social order for welfare of the people 2) Article No.39 : Certain principles of policy tot be followed by the state. 3) Article no.41 : Right to work, to education and to public assistance in certain cases.

Article 42 : Provision for just and humane condition of work and maternity relief. Article 43 : Living wage etc for workers. Article 43 A: Participation of workers in management of Industries. Article 45 : Provision of free and compulsory education for children. Article 46 :Promotion of educational and economic interests of SC/ST and other weaker sections. Article 47 : Duty of state to raise the level of nutrition and standard of living and to improve public health.

MAJOR CLASSIFICATION OF LABOR LAWS

Laws Related to Industrial Relationships Laws Related to Wages

Laws Related to Working hours, Condition of Services and Employment

Laws Related to Equality and Empowerment of Women. Laws Related to Social Security

Laws Related to Industrial Relations

The Trade Unions Act,1926 The Industrial Employment Act,1946 Industrial Disputes Act, 1947

TRADE UNIONS ACT, 1926

This Act provides for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions

Seven or more persons can get together to form a Trade Union. In order for the Trade Union to register it has to have at least ten percent or one hundred of the workmen which ever is less as its members. Section 9 - On registration the Registrar will issue a Certificate of Registration. Section 19 agreement between members will not be void or voidable merely by reason that the object of the agreement amounts to restraint of trade.

THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946

Defines the terms and conditions of service between the employer and his employees. Applies to every industrial establishment wherein 100 (in some States 50)or more workers are employed The Act extends to the whole of India SIGNIFICANCE : Terms of appointment order issued to an employee cannot circumvent the provisions of certified standing order. Therefore, it is always desirable to get standing orders drafted and certified as it regulates the relationship between the employer and the employee.

Obligations not to carryon any other business for gain or to take admission in educational institution without permission to observe strict secrecy of company matters not to take photographs, drawing or documents of the process of manufacture of the company not to carry any lethal weapon, explosive or article dangerous to life or property to follow safety rules in force to inform any change in the address etc

Medical examination and aid in case of accident Identification of workmen and issue of Identity cards Working time for different categories of workmen Record of age, qualification and experience Entry, exit and liability for security checking Shift working and weekly off Attendance and late coming Methods of applying for different kinds of leave and extension of leave Action for unauthorised absence

National and festival holidays Transfer Apprehension of danger to the safety and security of factory and its personnels Date of payment of wages/ salary Overtime wages Increment and promotion Stoppage, closing or lay off of establishment and strike Resignation notice or payment in lieu of notice to be given Termination of employment and notice or payment in lieu of notice required to be served or made

Service of notice Issue of service certificate Amendment of Standing order Exhibition of Notices as whether if put in the Notice Board or not

THE INDUSTRIAL DISPUTES ACT, 1947 (IDA)

IDA - is an Act to make provision and settlement of Industrial Disputes with the objective to maintain industrial peace and economic justice. IDA categories employees into workman and nonworkman. Section 2 (s) of IDA defines workman. Workman means any person employed in any industry to carry out manual, skilled and unskilled, technical, operational, clerical or supervisory work for hire or reward. The definition specifically excludes persons employed in managerial or administrative capacity and also those persons (otherwise falling within the definition of workman)

AUTHORITIES UNDER THIS ACTWorks Committee Conciliation officers Boards of Conciliation Courts of Inquiry Labour Courts Tribunals National Tribunals

WORKS COMMITTEE
Where?: Establishments with 100 or more workers . At some states, above 50 also. Members: Equal number of representatives of the Employer and Employees Objective: promotion of good relationship between employer and employee(s)

Laws Related to Wages

The Payment of Wages Act, 1936 The Minimum Wages Act,1948 The Payment of Bonus Act,1965

THE PAYMENT OF WAGES ACT,1936

An Act to regulate the payment of wages to certain classes of persons Extends to the whole of India Responsibility of payment wages rests with the employer Employer to fix Wage Period No wage period shall exceed one month.

Permissible deduction of wages:

fines for absence from duty for damage caused to the property of the employer for the amenities provided, like house accommodation for recovery of advance or adjusting over payment of wages towards EPF, ESI, Labour Welfare Fund and similar deductions permitted under any Act or the Standing Orders of the establishment for Life Insurance/ general insurance policies and Housing loan.

THE MINIMUM WAGES ACT,1948

AN ACT TO PREVENT SWEATED LABOUR AND EXPLOITATION OF LABOUR

The Act extends to the whole of India

Requires the Central and State Govt. to fix minimum rates of wages in certain scheduled employment.

Minimum wages fixed REVISED from time to time

Responsibility of the Employer

to follow the directions and fix wages of the workers at the rate not less than the one fixed to maintain Register of Wages in form XI showing rate of wages payable, actual amount paid, attendance & overtime, deductions for EPF, ESI and other, net amount paid, date of payment and signature of respective employee. Wages slip in form XIII showing the above details to be given to every employee.

THE PAYMENT OF BONUS ACT,1965

Cover all the establishments employing 20 or more in an accounting year. Maximum and Minimum Bonus specified un Section 10 and 11. Conditions for denial of bonus: 1) Dimissed from service for fraud. 2) Violent behaviour within premises 3) Sabotage 4) Theft Not related to the performance of an Employee.

Laws Related to working hours,Conditions of Services and Employment

The Factories Act,1948

The Shops and Establishments Act,1961

THE FACTORIES ACT, 1948

Washing facility: In every factory, suitable facilities for working shall be provided for the use of workers. Such facilities shall be kept clean.

(2) Facility for storing clothes/uniforms: A suitable place should be provided to the workers for keeping clothes during the time of work and uniforms overnight.

(3) Facilities for sitting: In every factory, suitable arrangement for sitting shall be provided and maintained, for all workers.

(4) First Aid Facility: The arrangement for first-aid shall be made in every factory. One first-aid box is to be provided for every 150 workers. First-aid facility has always to be made available during the working hours of the factory.

(5) Canteens: A canteen shall be provided in each factory employing over 250 workers. Suitable shelter, lunch room and rest room shall be provided for the use of the workers where more than 150 workers are employed.

(6) Creches: Every factory shall provide clean, well lighted creches (room) for the use of children of women workers.

(7) Welfare Officer: In every factory where 500 or more workers are employed, the employer shall employ Welfare Officer in the factory.

SHOPS AND COMMERCIAL ESTABLISHMENT ACT,1961

In India most States have a legislation (Shop and Establishments Act) in place which regulate aspects such as working hours, leave with pay, overtime etc. Shop and Establishments Act apply to shops, commercial establishments, banks, insurance companies, hotels, restaurants, software companies and other service providers. However, they do not apply to factories as Factories Act, 1948 governs that conditions.

The establishment are required to register in each city under the Act. Some of the salient features is discussed herein of Bombay Shop and Establishment Act, 1948 (BSA) which are akin to the enactment of other States.

Working hours for 48 hours per week spread over 6 days is permitted. Overtime payment is made at the double normal hourly rate. Employee who has worked minimum 240 days will become eligible for 21 days paid leave and employee is not allowed to accumulate more than 42 days leave. BSA also has provisions regarding toilets, hygiene etc. and makes provisions for maternity benefits etc.

Laws Related to Equality and Empowerment of Women

The Maternity Benefit Act,1961

The Equal Renumeration Act,1976

THE MATERNITY BENEFIT ACT,1961

Maternity

Benefit Act, 1961 was made by the Central Government. This act provides maternity benefits to the women workers. Various objects of this act are:
To regulate the employment of women for specified period before and after child birth. To provide maternity benefits to women workers at the rate of average daily basis. To provide for certain benefits in case illness arising out of pregnancy.

a.

b.

c.

THE EQUAL RENUMERATION ACT,1976

Act provides for the payment of equal remuneration to men and women Extends to the whole of India Act makes it obligatory on the part of employer to pay equal remuneration to men and women workers for same work or work of a similar nature. In order to make the wages equal, prevailing wages shall not be reduced but the higher rate shall be maintained. No discrimination in any condition of service subsequent to recruitment such as promotions, training or transfer.

Laws related to Social Security

The Workmen Compensation Act,1923 The Employees State Insurance Act,1948 The Employees Provident Fund Act,1952 The Payment of Gratuity Act,1972

THE WORKMEN COMPENSATION ACT,1923

The Act provides for payment of compensation to the worker injured during the course of employment or contracted by any occupational disease peculiar to that employment The amount of compensation : for accidents resulting in death, an amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor; or an amount of eighty thousand rupees, whichever is more * for permanent total disablement, 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.

THE EMPLOYEES STATE INSURANCE ACT,1948

Applies to factories and establishments functioning in the notified area and consisting of 10 or more employees. * Provides for health care and cash benefits in cases of sickness, maternity and employment injury. * The Act absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmens Compensation Act 1923. All employees drawing salary of Rs 10,000 or less are covered

ESI BENEFITS

Medical Benefits Available both to IP and family. Also available to disabled/retired IP Super specialist treatment Sickness Benefit Maternity Benefit Disablement Benefit Dependant benefit Funeral Expenses Old age medi care Rehabilitation

THE EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT,1952

An Act to provide for the institution of provident funds, pension funds and deposit linked insurance fund for the employees in the factories and other establishments Extends to the whole of India except the State of Jammu and Kashmir

Benefits

to Employees

-Provident Fund Benefits -Pension Benefits -Death Benefits

THE PAYMENT OF GRATUITY ACT, 1972

It applies to factories, mine, oilfield, plantation, port , railway, Shops and Establishments employing ten or more persons. Applicable to employees who have rendered continuous service for five years. Employees with less than five years will be entitled in case of death or disablement. Employer has to pay within 30 days from the date it becomes payable to the employee. Total amount of gratuity payable shall not exceed Rs.3,50,000/- to 10 Lakhs unless there is a contract to the contrary. Compulsory insurance is necessary towards gratuity from Life Insurance Corporation, unless employer exempted from the Government. Gratuity is calculated at the rate of 15 days wages for every completed year of service or a part thereof exceeding six months.

OTHER IMPORTANT LEGISLATIONS

THE PLANTATION LABOUR ACT,1951

AN ACT TO PROVIDE FOR THE WELFARE OF THE LABOUR, AND TO REGULATE THE CONDITIONS OF WORK, IN PLANTATIONS Provision of: -Drinking Water -Separate Toilets for Men and Women -Medical facilities to the workmen and their family -Canteen where 150 or more workers are employed -Crches where 50 or more women workers are employed or where the number of children of women workers is 20 or more -Recreational facilities -Educational Facilities where children between the ages of six and twelve of workers employed in any plantation exceed twenty five. -Housing facility -Welfare Officer where three hundred or more workers are employed.

THE CONTRACT LABOUR ACT,1970

An Act to regulate employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith Allows Employers (principal Employers) to use Contractors for supply of labour. It applies to establishments employing twenty or more persons. It does not apply to establishments where nature of work is intermittent or casual. Principal Employer as well as the Contractor have to register themselves. The Contractor has to provide amenities and facilities which include canteens, rest-rooms, first-aid facilities etc. In case the Contractor fails to provide the facilities the Principal Employer will have to provide the same and adjust and recover the expense from the Contractor.

SPECIALS ECONOMIC ZONES

Areas free of strict labour laws. Such Areas become more attractive for investments. Ex- Gujarat