INDUSTRIAL LAW 4BCO6C3

Transcription

1 S.LATHA M.Com., M.Phil.,B.Ed Assistant Professor, PG & Research Department of Commerce Arumugam Pillai Seethai Ammal College Thiruppattur INDUSTRIAL LAW 4BCO6C3

2 III YEAR VI SEMESTER COURSE CODE: 4BCO6C3 CORE COURSE - XVIII INDUSTRIAL LAW Unit I The Factories Act, 1948 Preliminaries Inspecting staff Health, safety and welfare of workers Working hours of adults Employment of children, women and young persons Leave with wages. Unit II The Trade Unions Act, 1926 Definitions Registration of trade unions Rights and liabilities of trade unions Fund for political purposes General funds Amalgamation of trade unions Immunity from civil and criminal liability Books and returns Penalties Dissolution. The Minimum Wages Act, 1948 Interpretation Minimum Wages Procedure for fixing wages Committee and advisory boards Wages in kind Payment of minimum wages. Unit III The Industrial Disputes Act, 1947 Definitions Authorities under the Act Strikes and lock outs Lay off and retrenchment. Unit IV The Workmen s Compensation Act, 1923 Nature and scope Definitions Rules regarding workmen s compensation Meaning of accident Amount of compensation: Permanent, partial and temporary disablement. Unit V The Employees Provident Funds Act, 1952 Preliminaries Provident Fund Scheme Provisions regarding contribution to the fund. The Employees State Insurance Act, 1948 Nature and scope Contribution Benefits Disputes and claims.

3 CHAPTER I The Factories Act, 1948 The Factories Act was enacted in 1948 to overcome the weaknesses of the law relating to factories. This act came into force on 1 st April, 1949 and extends to the whole of India. It was amended in Some of the amended provisions came into force with effect from 1 st December, 1987 and others from 1 st June Its main object is to regulate the conditions of work in factories. FACTORY In other words, its aim is to ensure safe and healthy conditions of life and work in factories. It means any premises including the precincts there of whereon- i. Ten or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, or ii. Twenty or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on-but excluding a mine or a railway running shed.(section 2 (m)). WORKER (Section 2 (I)) A worker means a person, i. Employed directly or through any agency. ii. Whether for wages or not. iii. In any manufacturing process, or iv. In cleaning any part of the machinery or premises used for manufacturing process, or v. In any other kind of work incidental to or connected with the manufacturing process or the subject of the manufacturing process. This term includes, a. Both time and piece workers b. Apprentices and other honorary workers but this term does not include. c. Persons who do not have privacy of contract the employer, e.g. a contractor or his collies. d. Persons who are not employed for the purposes specified in the definition, e.g. Office Manager, Accountant etc. MANUFACTURING PROCESS (Section 23 (k)) It means any process for i. Making, altering, repairing, ornamenting, finishing, packing, oiling etc., otherwise or adoping Any article or substance with a view to its use sale, transport, delivery or disposal or ii. Pumping oil, water or sewage or iii. Generating, transforming or transmitting power or

4 iv. Composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding or v. Constructing, reconstructin,repairing,refitting,fishing or breaking up ships or vessels or vi. Preserving or storing any article in cold storage. Examples: 1) Conversion of raw films into a finished product in matter of K.V.V. Sharma, Madras 2) Preparation of food stuffs and other eatables in the kitchen of a restaurant New Taj Mahal Café Ltd., Vs. Inspector of Factories. ADULT: It means a person who has completed his 18 th year of age. ADOLESCENT: It means a person who has completed his 15 th year of age but has not completed his 18 th year of age. CHILD: It means a person who has not completed his 15 th year of age. YOUNG PERSON: It means person who is either a child or an adolescent. POWER: It means electrical energy and any other form of energy which is mechanically transmitted. MACHINERY: It means a device by which power is generated, transformed, transmitted or applied. OCCUPIER: It means the person who has ultimate control over the affairs of the factory. He shall ensure, so far as is reasonably practicable, the health, safety and welfare of all the workers while they are at work in the factory. CALENDAR YEAR: It means a period of twelve months commencing on the 1 st day of january every year. DAY: It means a period of twenty four hours beginning at midnight. Here, the time is taken according to the Indian Standard Time. Otherwise, the State Government may make rules regarding the time to be followed in an area. SHIFT AND RELAY: Where the work of same nature is done by two or more sets of workers during different periods of the day, each set of workers is called a relay and each period is called shift. COMPETENT PERSON: Competent person means a person or an institution recognized as such by the chief inspector. HAZARDOUS PROCESS (Section 2 (cb)) It means any process or activity in relation to an industry specified in the first schedule where, unless special care is taken, raw material used therein or the intermediate or finished products, bye products wastes or effluents thereof would. a) Cause material impairment to the health of the persons engaged in or connected there with or b) Result in the pollution of general environment.

5 Health, Safety and Welfare of the Workers I.HEALTH OF THE WORKERS (Section 11 to 20) The following provisions ensures the health of the workers 1. Cleanliness Every factory must be kept clean and free from effluvia. It should be painted, white washed or color washed periodically and proper drainage should be provided. The accumulation of dirt should be removed. The floor space should be regularly cleaned by washing and using disinfectant etc. 2. Disposal of Wastes 3. Ventilation and temperature 4. Dust and fumes 5. Artificial humidification of air 6. Crowding 7. Lighting 8. Drinking water 9. Latrines and urinals 10. Spittoons II.SAFETY OF THE WORKERS Sections 21 to 40 contains the following provisions regarding safety of the workers 1. Fencing of machinery 2. Work on machinery in operation 3. Young persons and dangerous machines 4. Striking gears 5. Devices for cutting off power 6. Self-acting machines 7. Prohibition of employment near cotton-openers 8. Lifts,creanes etc 9. Factory premises 10. Pits, sumps and openings in floors 11. Overloading of workers 12. Protection of eyes 13. Precautions against dangerous fumes 14. Precautions against fire 15. Revolving machinery 16. Pressure plant 17. Safety if buildings and machinery III.WELFARE OF WORKERS Section 42 to 50 contains the following provisions regarding the welfare of workers 1. Facilities for washing 2. Facilities for keeping and drying clothes 3. Facilities for sitting

6 4. Facilities for first-aid 5. Canteen 6. Shelters, rest rooms etc., 7. Creches 8. Welfare officers WORKING HOURS OF ADULTS 1. Weakly working hours The adult workers should not be allowed to work in a factory for more than 48 hours in a week. 2. Daily working hours The adult workers should not be allowed to work in a factory for more than 9 hours in a day. 3. Interval The adult workers should not be allowed to work more than 5 hours without an interval of at least half an hour. 4. Daily working hours with interval The period of work of an adult worker including intervel should not spread over more than 10 ½ hours in a day 5. Holiday Every worker in a factory must be allowed a holiday on the first day of the week (i.e) Sunday. 6. Working days without holiday No adult worker should be allowed to work for more than 10 days without a holiday 7. Compensatory holiday Where a worker is deprived of any holidays, he must be allowed compensatory holidays of equal numbers. 8. Shift extending beyond midnight A worker works under a shift which extends beyond midnight must be given 24 hours rest beginning when such shift ends. 9. Relay The work carried on in a factory under shift system should not be so arranged that more than one relay of workers is engaged in work of the same kind at the same time. 10. Over time Every worker who works for overtime in a factory is entitled to wages at the rate of twice his ordinary rate of wages. 11. Double employment No adult worker should be allowed to work in a factor on any day on which he has already been working in another factory. In other words, double employment of an adult worker should not be allowed. NOTICE OF PERIODS OF WORK AND REGISTER FOR ADULT WORKERS Notice of Periods of work 1. A notice of periods of work showing clearly the schedule of work for everyday must be displayed and correctly maintained in the factories. 2. The periods shown in the notice must be in accordance with the rules relating to the working hours for adults. Such period of work must be fixed in advance. 3. The state Government may prescribe the forms or such notice and the manner in which it shall be maintained.

7 4. A copy of such notice must be sent in duplicate to the inspector before the commencement of work in the factory. Any change to be made in the notice must also be communicated to him in advance for getting his approval. Register of Adult Workers 1. It must be maintained by the manager of a factory and not by an occupier. 2. It must contain details regarding each adult worker, nature of work, the relay or group in which each worker is included etc., 3. It must be made available to the inspector at all times during working hours or during any work being carried on in the factory. 4. The State Government may prescribe the form for this register and the manner in which it shall be maintained. CERTIFICATE OF FITNESS It is a certificate issued by the certifying surgeons on the applications made by young person or his parent or guardian on payment of fee. Such fee is payable by the occupier of the factory. The certifying surgeon may issue the certificate if he thinks that the person is fit for work in a factory. The certificate is valid for twelve months from the date of issue. But it can be renewed afterwards. CERTIFYING SURGEON (Section (10)) The State Government may appoint qualified medical practitioners to be certifying surgeon For specified local limit or factories. Their duties are as follows; 1. The examination and certification of young persons under this act. 2. The examination of persons engaged in dangerous occupations or processes. 3. The exercising of such medical supervision as may be prescribed for any factory where cases of illness have occurred or likely to occur due to:- a) The nature of manufacturing process carried on b) The change in the manufacturing process carried on or substances used c) The appointment of young persons in any work causing injury to their health INSPECTORS (Section 8) The State Government may appoint the following inspecting staff to exercise the powers conferred by the Factories Act: 1. Chief inspector: He may exercise the powers of an inspector throughout the State in addition to his special powers. 2. Inspector: He may exercise his powers within the local limits assigned to him by the State Government. 3. Additional Inspector: He may also exercise power within the local limits assigned to him POWER OF THE INSPECTOR An inspector may exercise the following power within the local limits assigned to him: 1. He may Venter the premises of factory with the assistance of any person in Government Service.

8 2. He may examine the plant, machinery and premises of the factory. 3. He may require the production of any register and any other document relating to the factory. 4. He may take statements of any person which he consider necessary for the purpose of the Act. 5. He may exercise such other powers as may be prescribed for carrying out the purposes of the Act. The Trade Unions Act, 1926 The term trade union means an association of workers. It has been defined in Sec. 2(h) of the Act as, any combination whether temporary or permanent, for the purpose of regulating the relations between the employers and workmen, workmen and workmen or employers and employers. It may also be formed for imposing restrictive conditions on the conduct of any trade or business. It also includes any federation of two or more trade unions. It may be registered or unregistered. OBJECTS 1. To regulate the relations between employers and workmen 2. To regulate the relations between workmen and workmen 3. To regulate the relation between employers and employers 4. To impose restrictive conditions on the conduct of any trade or business. TRADE DISPUTE It means any dispute between employers and workmen or between workmen and workmen, or between employers and employers which is connected with, a. The employment or non-employment (or) b. The terms of employment (or) c. The conditions of labor, of any person. EXECUTIVE It means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted. REGISTRATION OF TRADE UNIONS (Sec 4 to 9) 1. Appointment of Registrar (Section -3) : A registrar for every state may be appointed by the appropriate Government. The appropriate Government may also appoint as many additional and deputy registrars as it think necessary. 2. Mode of Registration (Section-4): Any seven or more members subscribing their names to the rules of a trade union may apply to the registrar for registration. 3. Application for registration: An application with the rules of the union and the following particulars must be submitted to the registrar. 4. Calling for further information: The registrar may call for further information as may be necessary for the registration of a trade union. If such information is not supplied. He may refuse to register the union. 5. Alteration of name of the union: The name of the union should not resemble the name of an existing union. Otherwise, the name must be altered before registration.

9 6. Registration: On being satisfied that the union has complied with all the legal requirements for registration, the registrar may register the trade union. 7. Certificate of registration: After registration of a trade union, the registrar must issue a certificate or registration in a proper form. It is a conclusive evidence for the registration of a trade union under this Act. CANCELLATION OF REGISTRATION (Sec.10) The certificate of registration may be withdrawn or cancelled by the registrar if, a. The union applies for it., b. The certificate has been obtained by fraud or mistake c. The union has ceased to exist. d. The union with fully contravenes the provisions of the Act. e. The union has any rule in force inconsistent with the provision of the Act f. Removal of any rules as per section 6 of the Act. QUALIFICATION TO BECOME MEMBER OF A TRADE UNION (Sec 21) A person who has completed 15 years of age may become the member of a registered trade union subject to its rules. But he cannot become an office bearer until he attains the age of 18 years. DISQUALIFICATION FOR AN OFFICE BEARER OF A TRADE UNION The following persons are not qualified to become office bearers of trade union: a. Persons who had not attained the age of 18 years b. Persons who were convicted to undergo imprisonment by a court in India for immoral acts. c. Persons who had not completed five years after their release from the above imprisonment. AMALGAMATION OF TRADE UNIONS (Sections 24-26) Two or more trade unions may be amalgamated subject to the following conditions: a. At least one half of the eligible members of each union must record their vote on the proposal of amalgamation. b. At least sixty percent of the votes recorded must be in favor of the proposal c. A notice signed by the secretary and seven members of each trade union. Regarding amalgamation must be sent to the registrar. d. If the head office of the amalgamated trade union is situated in other state, a notice as mentioned above must also be sent to the registrar of that state. The registrar may register the amalgamation of trade unions if he is satisfied that all the procedures regarding amalgamation have been complied with. The amalgamation will take effect from the date of such registration. The amalgamation of trade unions will not affect the rights of any trade union or creditors or anybody.

10 DISSOLUTION OF TRADE UNION (Section 27) A notice of dissolution must be sent to the registrar within fourteen days of dissolution of the union. If the registrar is satisfied that it has been done in accordance with the rules of the union, he will register the dissolution. Then only the dissolution will come to force. After registration of dissolution of a trade union, the registrar may distribute the funds of the union to its members when there is no specific condition regarding such distribution in the rules of a trade union. The Industrial Disputes Act, 1947 This Act came into force on 1 st April, 1947 and extends to the whole of India. It has been passed to remove the defects of the Trade Disputes Act, Its main objects are i) to secure industrial peace ii) to improve the condition of workmen in industries. Industrial Dispute: It means any dispute or difference between employers and employers or between employers and workmen, workmen and workmen which is connected with the employment or nonemployment or the terms of employment or with the conditions of labor, of any person but does not include an individual dispute or a trade union dispute. Individual Dispute: It means any dispute between an employer and any of his employees in relation to the transfer, promotion, termination or any punishment and computation of dues. Trade Union Dispute: It means any dispute between a trade union and another trade union or between a member and the trade union or between two or more members of a trade union relating to registration, certification, administration or management of the affairs of a trade union. Lay off: It means the failure, refusal or inability of an employer to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched on account of, i) Shortage of coal, power or raw materials, or ii) The accumulation of stocks, or iii) The breakdown of Machinery, or iv) For any other reasons. Lock-out: It means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. Strike: it means i) Stopping of work by a body of persons employed in any industry acting in combination, or ii) A concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or accept employment. Public Utility Service: it means i) Any railway service or any transport service for the carriage of passengers or goods by air. ii) Any section of an industrial establishment, on the working of which the safety of the establishment or the workmen employed therein depends:

11 iii) Any postal, telegraph or telephone service. iv) Any industry which supplies power, light or water to the public v) Any system of public conservancy or sanitation vi) Any other industry declared by the appropriate Government to be a public utility service. Retrenchment: It means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action. However, it does not include, i) Voluntary retirement of the workman or ii) Retirement of the workman on reaching the age of superannuation if the contract of employment contains a stipulation in that behalf. Wages: It means all remuneration that can be expressed in terms of money payable to a workman as per the terms of employment and in respect of his employment or of work done in such employment. When does an individual dispute become industrial dispute? An individual dispute may become an industrial dispute when the cause of a particular workman is taken up by a majority of the women in the particular establishment or by only union of such workman (Kalyani Press and Andhra Pradesh) Average pay It means the average of a wages payable to the workman 1. In the case of monthly paid workman, in the three complete calendar months 2. In the case of weekly paid workman in the four complete weeks and 3. In the case of daily paid workman, in the full working day, preceding the date on the day which the average pay becomes payable. In the other case, the average of the wages payable to the workman during the period he actually worked. Continuous service A workman is said to be in continuous service due to, service for a period if he is for that period in uninterrupted 1. Sickness or authorized leave 2. An accident or a legal strike 3. A lock-out or a stoppage of work without any fault of the workman

12 A workman shall be deemed to be in continuous service for one year if he has during that period actually worked under an employer for not less than 190 days in the case of underground work and 240 days in the other cases Controlled Industry The industry which are controlled by the central government for the interest of the public are known as Controlled Industry Authorities under the Act Or Machinery for the Prevention and Settlement of Disputes 1. Works committee The employer of an industrial establishment where 100 or more workmen are employed on any day in the proceeding twelve months must constitute a works committee if required by the appropriate Government. Such committee must consist equal number of representatives of employers and workmen. The committee should promote measures for securing and preserving friendly and good relations between the employer and workmen. 2. Conciliation Officers (Section-4) The appropriate Government may appoint such number of persons as it thinks fit, as conciliation officers. Their duties are as follows: i) They must conduct conciliation proceedings in the prescribed manner when an industrial dispute exists. ii) iii) They must investigate the dispute and induce the parties to settle the dispute. They must send a report to the appropriate Government when the dispute is settled with a memorandum of settlement signed by the parties. 3. Boards of Conciliation (Section-5) The appropriate Government may constitute a Board of conciliation consisting of a Chairman and two or four other members equally representing the parties to the dispute. The Board has to perform the same duties as that of conciliation officers. But it must send its report within two months from the date of reference or within the period fixed by the appropriate Government. 4. Court of enquiry ( Section- 6) The appropriate Government may constitute a Court of Enquiry consisting of one or more number of independent persons who are the Judges of High Court or qualified to be appointed as such. When numbers of members are two or more, one of them shall acts as chairman. Its duties are as follows i) It must enquire into the disputes referred to it. ii) It must submit its report within six months from the date of commencement of its enquiry. 5. Labor Courts (Section-7) The appropriate Government may constitute one or more Labor Courts for the judicial settlement of industrial disputes relating to any matter specified in the second schedule and for performing other functions as may be assigned to them under the Act. The Workmen s Compensation Act, 1923

13 This Act came into force on 1 st July, 1924 and extends to the whole of India. The main purpose of this Act is to provide proper compensation to the injured woman in case of accident and to prevent accidents. In other words, it provides a measure of relief and social security to workmen in case of an accident. An injured workman may claim compensation under any one of the following ways: i) Filling a civil suit against the employer for damages. ii) Claiming compensation under the women s Compensation Act. Out of the two, the second one is less costly and safe. Definitions (Section-2) 1. DEPENDANT : Section-2(1)(d) It means: i) A widow a minor legitimate son, unmarried legitimate daughter or a widowed mother. ii) A son or a daughter who has attained the age of eighteen years provided they are wholly dependent on the earnings of the workman at the time of his death. 2. Disablement It means loss of capacity to work and reduction of earning capacity of a workman. In the words the Act takes into consideration both physical disablement and reduction of the earning capacity (Calcutta Electric Supply Vs Habul Chandra) a) Partial Disablement: It reduces the earning capacity of a workman due to an accident. It may be a temporary or permanent. i. A Temporary Partial Disablement is one which reduces the earning capacity of a workman in any unemployment in which he has engaged at the time of accident. ii. A Permanent Partial Disablement is one which reduces the earning capacity of a workman in every employment which he was capable of undertaking at the time of injury. It may arise due to the injuries specified in Part-II of Schedule I to this Act. b) Total Disablement: It means such disablement, whether of a temporary or permanent nature, as incapacitates a workman for all work which he was capable of performing at the time of accident resulting in such disablement. Difference between temporary partial disablement and permanent partial disablement Temporary Partial Disablement Permanent Partial Disablement 1. It means reduction in the earning Capacity of a workman in the employment in which he engaged at the time of accident 2. No injury is specified in the schedule to the Act resulting in temporary partial disablement. It means reduction in the earning capacity of a workman in every employment which he was capable of undertaking at the time of accident. The injuries resulting in permanent partial disablement are listed in Part II of schedule I to the Act.

14 Difference between partial disablement and total disablement Partial Disablement Total Disablement 1. It means reduction in earning capacity of a workman due to an accident. 2. It will reduce the earning capacity of a workman in the employment in which he was engaged or every employment which he was capable of undertaking at the time of accident 3. In this case, temporary or permanent disablement on the basis of the number of employments in which there is reduction in earning capacity. 4. It may arise from the injuries specified Part II of Schedule I. 5. The reduction in earning capacity resulting from this disablement should always be less than 100% as per schedule. It means loss of earning capacity of a workman due to an accident. It will incapacitate a workman for all work he was capable of performing at the time of accident. In this case, the temporary or permanent disablement is determined on the basis of the nature of injuries resulting in loss of capacity. It may arise from every injury specified in Part I of Schedule I or any combination of injuries specified in part II of the Schedule aggregating 100% or more in loss of capacity. The loss of earning capacity resulting from this disablement should not be less than 100% as per the schedule. Rules Regarding Workmen s Compensation Liability of Employer for Compensation (Section-3) 1. Liability for Personal Injury An employer is liable to pay compensation to a workman if personal injury is caused to his by accident arising out of and in the course of his employment. This definition includes the following conditions: i. Personal Injury The Injury must be personal and not to the properties of a workman: (The Indian News Chronicle Ltd., Vs Mrs. Lazarus). It includes not only physical or mental injury but also psychological and physiological injuries (Yates vs. South Kirby Colleries).

15 ii. iii. Injury due to an accident The injury must be caused by an accident. The word accident means an event unlooked for or untoward, not expected or designed by the injured workman. The death of a person due to insanity resulted from an accident was also held as injury caused by an accident in Grime vs. Fletcher. Accident arising out of and in the course of employment The Accident must arise out of and in the course of employment. It is explained below in detail. 2. Liability for Occupational Disease If an employee contracts any occupational diseases which are specified in Schedule III o this Act. The contracting of such disease shall be deemed to be an injury by accident arising out of and in the course of the employment. Therefore, the employer is liable for compensation for the occupational disease contracted by a workman. CHAPTER V The Minimum Wages Act, 1948 The Minimum Wages Act fixes the minimum rates of wages payable to employees employed in certain employments specified in the schedule on the Act. The Act is enacted by the Central Government but enforced by the State Government except in relation to employments carried on by or under the authority of the Central Government. The Government which enforces this Act is known as Appropriate Government. Wages It means all remuneration, capable of being expressed in terms of money, payable to an employee according to the terms of the contract of employment. Employer The term employer means any person who employs whether directly or through any other person or whether on behalf of himself by any other person, one or employees in a scheduled employment. Employee The employee means any person who is employed for hires or a reward to do any work in a secluded employment. The term includes outworkers who prepares goods at his residence and then supply them to the employer. Cost of Living Index (Section 2 (d) ) It means the index number ascertained and declared by the competent authority by notification in the official gazette. Scheduled Employment It means an employment specified in the scheduled to the Act. They are, PART Employment in any woolen carpet making or shawl weaving establishment. 2. Employment in any rice mill, flour mill or dhai mill. 3. Employment in any tobacco factory 4. Employment in any oil mill 5. Employment in any plantation 6. Employment in any local authority 7. Employment in the construction or maintenance of roads or in building operations. 8. Employment in stone breaking or stone crushing. 9. Employment in any lace manufactory. 10. Employment in any public motor transport.

16 11. Employment in any mica works 12. Employment in tanneries and leather manufactory. 13. Employment in certain specified mines. PART 2 Employment in agriculture, it includes, a) Any form of farming b) Dairy farming c) Production of any agricultural or horticultural commodity. d) Rising of live stock, bees or poultry. The appropriate Government may incorporate any employment in the Schedule by notification in the Official Gazette whenever it deems it necessary to fix minimum rate of wages for such employment. Fixing and Revising of Minimum Wages 1. Fixing of Minimum Wages for Scheduled Employment Section 3 provides that the appropriate Government shall. a. Fix the minimum rates of wages payable to employees employed in an employment specified in Part I or II of the schedule and added to either part by notification under Section-27: b. Fix such rates for a part of the State or for any specified class or classes of employment in the whole State or part thereof in respect of employments specified in part II of the Schedule. 2. Revision of Minimum Wages The appropriate Government shall review at such intervals not exceeding 5 years, the minimum rates of wages so fixed and revise the minimum rates if necessary. 3. Refrain from fixing the Minimum Wages The appropriate Government shall refrain from fixing the minimum rates of wages in respect of any scheduled employment in which there are less than 1000 employees. But if at any time, the appropriate Government finds that the numbers of employees has risen to 1000 or more, it shall fix the minimum rates of wages payable to the employees in such employment. 4. Different Rates of Minimum Wages Section 3 (2) Provides that the appropriate Government may fix a) A minimum time rate. b) A minimum piece rate. c) A guaranteed time rate. d) Overtime rate. 5. Different Rates for Different Employments According to Section 3 (3), different minimum rates of wages may be fixed for 1. Different scheduled employments 2. Different classes of work in an employment 3. Adults, adolescents, children and apprentices. 6. Wage periods Such minimum rates of wages may be fixed for the following wage periods (a) Hours (b) Day (c) Month (d) Such other large wage period as may be prescribed. 7. Committees According to Section 5, the appropriate Government may appoint as may committees and sub-committees as it considers necessary to hold enquires and advice it in respect of such fixation or revision. 8. Publication of Proposals

17 The Government shall publish in the official gazette, its proposals for the information of persons likely to be affected thereby and specify a date for making representations not less than 2 months from the date of notification before which the proposals will be taken in the consideration. 9. Fixation of Minimum Rates of Wages After considering the advice of the committees appointed and all representations received by it, the appropriate Government by notification fix or revise the minimum rates of wages. They shall come into force after the expiry of 3 months from the date of notification unless otherwise provided for. The Employees Provident Funds Act, 1952 This Act has been enacted for the purpose of institution of provident fund, pension fund and Deposit linked insurance fund for employees in factories and other establishments. It came into force from November It extends to the whole of India except the State of Jammu and Kashmir. Initially, it applies to factories engaged in industries specified in Schedule I and in which 20 or more person are employed. But now, it extends to more than 100 industries and classes of establishments including non-factory establishments. Objects The object of this Act is to provide better future to the industrial workers on their retirement or to provide benefit to their dependants in case of their death while in employment. Employees Provident Fund Scheme The Employees Provident Funds Act provides for the institution of Provident Funds for the Employees in factories and other establishments. Section-5 of the Act lays down that the Central Government may be notification in the official gazette frame a scheme to be called the Employees Provident Fund Scheme for the establishment of Provident Funds under this Act. The scheme shall be applicable to the employees or class of employees and establishments, specified by the Central Government. After framing the scheme, a fund in accordance with the provisions of the Act and the scheme shall be established. The fund is created by the contributions made by both employer and employees. The employer is also required to contribute to the fund in the same way in which the employee is required to make the contribution. The Central Government has powers to amend the scheme. Administration of the Scheme Central Board: This Board is constituted by the Central Government for the administration of the Provident Fund. All the members of this board shall be appointed by the Central Government. The members to be appointed are. (1) Chairman and a vice chairman. (2) The Central Provident Fund Commissioner. (3) 5 officers of the Central Government. (4) 15 Persons representing the notified State Governments. (5) 10 Persons representing employers of the establishments to which the scheme applies. (6) 10 Persons representing employees of the establishments to which the scheme applies. The Board shall administer the fund and perform such other functions according to the provisions of the scheme. Employees Pension Scheme (Section 6A) The Central Government may by notification in the Official Gazette, frame a scheme for the Purpose of providing for the following:

18 a) Superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishment to which this Act applies. b) Widow or Widower s Pension, Children pension or orphan pension payable to the beneficiaries of such employees. The scheme so framed is called the Employees Pension Scheme. After framing of this scheme a Pension Fund shall be established. To this fund, the following sums shall be paid in respect of every employee who is a member of the Pension scheme, from time to time: A) Employer s contribution not exceeding 8 1/3 % of the basic wages. Dearness allowance and retaining allowance if any of the concerned employee. B) Sums payable by the employers of exempted establishments. C) Net assets of the Employees family pension fund as on the date of the establishment of the Pension Fund. D) Such sums as the Central Government may specify in this behalf. The Pension Fund shall be vested with and administered by the Central Board. The scheme may provide for all or any of the matters specified in Schedule III. CHAPTER VIII The Payment of Bonus Act, 1965 The Act came into force on 25 th September, It is applicable to the whole of India. It has been amended for a number of times. Finally, it was amended for two times in the year The term BONUS has not been defined in this Act. However, the dictionary meaning of this term is that it is a gratuity or exgratia payment to workmen over and above their normal wages. Therefore, till the enactment of this Act, there was no duly for the employer to pay bonus and no right for the employees to claim it. Objects In Hutti Gold Mines Kamgar Sangh vs. Government of India, it was observed that the object of the Payment of Bonus Act is to maintain peace and harmony between labour and capital by allowing the employees, in recognition of their right. To share in the prosperity of the establishment reflected by the contributions made by capital, management and labor. Eligibility for Bonus (Section 8) Every employee shall be entitled to get bonus, in accordance with the provisions of this Act, from his employer in an accounting year. But for this purpose, he must have worked in the establishment for not less than thirty working days in that year. Disqualification for Bonus (Section 9) An employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for (i) (ii) (iii) Fraud or Riotous or violent behavior while on the premises of the establishment or Theft, misappropriation or sabotage of any property of the establishment. Determination of Bonus The gross profit must be computed first to determine the bonus. From the gross profit the sums specified in Section 6 are to be deducted to arrive at the available surplus. Then the employees share in

19 the available surplus is to be determined. It is known as allocable surplus. It has been defined in Sec. 2(4). The provisions regarding the distribution of this surplus to the employees are explained in detail under the head Payment of Bonus in page No: D116 the amount paid to the employees as per these provisions is knows as bonus. CHAPTER IX The Payment of Gratuity Act, 1972 Gratuity is a payment to help the employees after their retirement and to appreciate their faithful service over a long period. It is also a kind of retirement benefit like pension. To ensure a uniform pattern of payment of gratuity to the employees throughout the country, the Payment of Gratuity Act, 1972 was enacted by the Central Government. This Act came into force on 16 th September, It extends to the whole of India. But it is not applicable to the State of Jammu and Kashmir so far as it relates to plantations or ports. Objects 1. To provide for the payment of gratuity to persons employed in factories, mines, oilfields, plantations, ports, railway companies, shops and certain other establishments employing 10 or more persons and for matters connected therewith or incidental thereto. 2. To ensure a uniform pattern of payment of gratuity to the employees throughout the country. Payment of Gratuity (Section 4) 1. Circumstances for payment of gratuity: Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years: i) On his superannuation, or ii) On his retirement or resignation or iii) On his death or disablement due to accident or disease In case of death or disablement, the continuous service of 5 years is not necessary. In case of death of the employee, the gratuity payable to him shall be paid to his nominee. If no nomination has been made, it shall be paid to his heirs. 2. Rate of Gratuity: The employer shall pay gratuity to an employee at the rate of 15 days wages for every completed year of service or part thereof in excess of six months. The 15 days wages shall be calculated by dividing the monthly wages last drawn by an employee by 26 and multiplying the quotient by 15. In the case of piece-rated employee daily wages shall be computed on the average of the total wages ( Excluding overtime-wages) received by him for a period of 3 months immediately preceding the termination of his employment. In case of an employee who is not employed throughout the year in a seasonal establishment the employer shall pay gratuity at the rate of 7 days wages for each season. 3. Maximum Gratuity: The amount of gratuity payable to an employee shall not exceed Rs.3, 50, Better terms of Gratuity: The provisions of Section 4 shall not affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer. Forfeiture of Gratuity (Section 4 (6)

20 The provisions regarding the forfeiture of gratuity payable to an employee are as follows:- a) The gratuity of an employee, whose service have been terminated for any Act, willful omission or negligence causing any damage or loss to or destruction of property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused. b) The gratuity payable to an employee may be wholly or partially forfeited if the services of such employee have been terminated:- i. For his riotous or disorderly conduct or any other act of violence on his part, or ii. For any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment. Determination of Gratuity (Section 7) 1. Application of Gratuity: a person who is eligible for payment of gratuity of gratuity under this Act or any person authorized to act on his behalf shall send a written application to the employer in the prescribed form. Such application shall be given within the time limit given below: i) Generally, such an application shall be made within 30 days from the date on which the gratuity became payable. But where the date of superannuation or retirement of an employee is known, such an application shall be made before 30 days of the date of superannuation or retirement. ii) Where a legal heir of an employee is eligible for payment of gratuity, such application shall be made within one year from the date on which the gratuity became payable. 2. Determination of the amount of gratuity: As soon as the gratuity becomes payable, the employer shall determine the amount of gratuity. 3. Payment of gratuity: The employer shall arrange to pay the gratuity, within 30 days from the date on which it becomes payable. He shall pay the amount of gratuity to the person to whom it is payable. 4. Interest for delayed payment of gratuity: If the amount of gratuity payable by the employer is not paid within 30 days, he shall pay simple interest for the amount payable. c) Dispute as regards gratuity: If there is any of the following disputes as regards gratuity, the employer shall deposit the amount of gratuity payable by him with the controlling authority.