Human Resource Legislations

Module-I
THE NEED FOR LABOUR LAWS
THE NEED FOR LABOUR LAWS

The days where the labourers toiled hard for a pittance are in for a welcome
change. Some of the legislations are intended to set the imbalance right.
Read on to know more…

The odds have always been stacked against them. Ever since
industrialisation became a force to reckon with, the working class has been
at the receiving end of the ill treatment meted out to them by their
employers. The fact that they were illiterate, unsure of themselves and
disunited did nothing to improve their situation. They were systematically
exploited and discriminated against by hordes of employers, for whom
profits took precedence over everything else, including the health and
welfare of a worker.

Workers were made to work for long hours under absolutely inhuman
conditions. They were paid a pittance for the work they put in. All too often,
a proportion of this pittance was taken away under one pretext or the other.

Workers could do nothing about this injustice. They had no right to discuss
the terms and conditions of their employment. The constant influx of
migrants, from rural to urban areas in search of employment, ensured that
employers were always assured of cheap labor and a submissive working
class. Anyone who refused to work under these conditions would lose his
job to another worker grateful for the opportunity to earn a living.

The demand for consumer goods rose around the two World wars.
Employers felt the need to go in for large-scale production in order to cope
with the demand. It was at this time that workers realized that if they were
to band together, they would be able to demand more equitable terms and
conditions of employment. This realization led to a demand for higher wages
and better working conditions. When employers refused to heed these
demands, strikes and lockouts became the commonplace.

Around this time, the government decided to impose some kind of order in
this set-up. A number of laws were enacted in order to provide relief to
workers and ensure the smooth working of the production process.

Growth of Labour legislation in India

In the government of India (amendment) Act, 1919, the central legislature was given
the
power to legislate in respect of practically all labour subjects. The provincial
Governments were empowered to legislate only in respect of those labour matters
which were classified as provincial. But they were required to take the sanction of
the Governor General in respect of these subjects also. All labour legislation was
enacted by the central legislature during this period. When the whitely commission
reported in 1931, the bulk of the labour problems within the jurisdiction of the
government of India was dealt with by the then department of industries and labour
under the charge of a member of the governor generals executive council. Its
administrative head was a secretary to government. While industries and labour
was a short title for the department, it dealt with a variety of subjects, such as post
and telegraph, public works, civil aviation, patents and copyright and broadcasting.
The department, however did not cover all labour within the jurisdiction of the
central government. Questions relating to labour in docks, and transport by sea or
inland water, the concern of the commerce department; matters pertaining to the
railway labour were dealt with by the chief commissioner for Railways. The
department of Education, health and lands looked after emigrant labour. In the
chief inspector of mines, the department of industries and labor had an adequate
source of advice on all subjects relating to mining ;abour. No specialist advice was
considered necessary on the conditions of work in factories, workmen’s
compensation, trade union and trade disputes. Administration of such legislation as
was there on these matters was the responsibility of the government of
presidencies/provinces. In the provinces, the labor portfolio was handled by a
member of the executive council who was responsible also for other subjects.
Labour problems had acquired neither the vastness nor the complexity to warrant
the attention of a full-time member, except in some industrially advanced provinces
which had their respective labour officers for the limited responsibilities
they had to carry, no specialised agency existed for administration. It is in this
context that the Whitley commission recommended the setting up of the office of the
labour
commissioner in the provinces. On the introduction of provincial autonomy under
the government of the Indian Act,1935, labour was included in the concurrent list.
Accordingly, matters exclusively included in the federal list and central and state
legislation were given authority to enact legislation in respect of all other labour
matters.
When popular ministries took over administration under the government of
ndiaAct,1935,labour problems started attracting more attention. The appointment
of the labour commissioner in industrially important provinces as recommended by
the whitely commission did help labor. However, problems of coordination still
remained. The labour ministers conference and the Indian labour
conference/standing labour committee which were the product of the forties, partly
met this need. With the impact of the second world war, the machinery for labour
administration at the center expanded. According to the rege committee which
reported on the eve of independence, the instuition of labour officers under the
commissioners of labour to whom workers could represent their grievances, was
well established in most provincial government. Like wise the government of India
appointed under its chief labour commissioner, a number of regional labour
commissioners and conciliation officers who were entrusted with duties of setting
labour disputes. The chief labor commissioner’s organization had also an
inspectorate for supervising the implementation of labour laws. The government of
India appointed labour welfare adviser in its ordinance factories. An advisory
service was built up at the center for the factory inspectorates in the states which
were operating under the auspices of the state government. The labour bureau was
established. A network of national employment service and training instates was
getting organized. The five year programme for labour(1946) had many elements in
it requiring the strengthening of the administration and intensifying its operations.
The legislative support given to the programme resulted in (a) the creation of
administrative machinery for the implementation of new enactments and (b) the
strengthening of the then existing set-up to cope up with the additional functions
entrusted to it. The expanding operations of the tripartite bodies also added new
responsibilities. The beginning of world war II in 1939 necessitated the creation of
an adequate and contented labour force in order to maxmise production for meeting
the increased demand of Indian manufactured goods. The central government
therefore, assumed wide power to control and regulate the industrial labour
welfare. The labour department was strengthened and a machinery to deal with
industrial relations was created. An integrated resettlement organization for
demobilized war personnel was established. For advising the government to
improve working conditions in factories a chief advisor of factories was appointed.
A new department of works, mines and power was created and certain subjects
which were having only an indirect bearing on labour were transferred to this
department. This lessened the burden of the labour department. In pursuance of the
decisions of the provincial labour ministers conference in 1946 the central ministry
of labour chalked out a five year programme of legislative and administrative
measures for improving the health, efficiency and working conditions of the
labourers. At present there is a tripartite labour machinery. It consists of the Indian
labour conference, the standing labour committee, the industrial committees and a
few other committees of a tripartite nature. Labour ministers conference are also a
bipartite joint consultative committees and boards such as committees, steering
group on wages, wage board, central board for workers education, central
committee on labour research. According to the constitution of India, the enactment
and administration of labour laws is the responsibility of both the union and the
state governments.

SCOPE OR FIELDS OF LABOUR ADMINISTRATION:

The scope or fields of activities under labour administration have expanded during
the course of time initially confined to the enforcement of a few labour laws or
regulations, labour administration has come to cover within its fold a wide variety
of subjects. Substantial enlargement of the number and contents of labour laws and
regulations all the more necessitated the establishment of a network of labour
administration machineries. State regulation of labour matters become necessary
also from many other consideration. The broad areas covered under labour
administration today , whether statutory or non-statutory, include- contract and
terms of employment, wages ,working conditions, industrial relations, social security
employment and un-employment ,training , employment of children and women,
organisation of workers and employers information and research and industrial
disputes and work-stoppages. The specific fields of labour administration activities
include:quantum of wages including minimum wages, protection of wages fringe-
benefits, bonus hours of work , workmens compensation, provident funds and
pension, gratuity, sickness benefit , medical protection, unemployment benefit ,
employment policy , employment exchange, training , vocational guidance, labour
measures and so on. The degree of emphsis, activities undertaken, and the extent of
intervention vary from country to country. Lobour administration is confined not
only to the nation ministerial department or departments of state or local
government. It also covers the role of other agencies including workers and
employers organizations and non-governmental agencies at various levels. The fields
of labour administration activities essentially depend on the nature of labour policy,
labour laws and regulations and practices operationg in particular countries at
particular times. Of the agencies involves in labour administration, the government
the national ministerial labour department has to play the most significant role. The
international labour conference suggests the following main functions of such a
department:

1. It should be required to provide the government with all useful information for or
to
advise it with regard to the elaboration of governments labour policy abide where
necessary the preparation of law and regulation;
2. It should be entrusted with the administration of labour laws and regulations, the
implementation of governments labour policy and the handling of labour questions;
3. It should participate at the highest level and on an accepted and reciprocal basis
with
other government department in elaboration of policies concerning such objectives
as
eradication of unemployment, industrial peace and other questions relating to
labour;
and
4. It should have at its disposal competent and adequate staff and administrative
resources such as will enable it to perform its functions efficiently and impartially.

IMPORTANCE OF LABOUR ADMINISTRATION:

Efficient labour administration, capable of responding to changing and social
conditions and justifying the confidence of both employers and workers , makes a
vital contribution to the improvement of working conditions and at the same time to
national development. Its contribution towards development of participation
through social dialogue and tripartism has been recognized all over the world.
Labour administration has increasingly acquired credibility on account of the
fairness of labour policies, laws and regulations which are known and applied
uniformly. It also contain elements of transparency as there is openness in decision-
making which generally involves consultation with and participation by the parties
concerned. Decision are generally taken after informing to the parties about the
proposals. Services in labour administration are made available without
discrimination. Organisation for labour administration is generally open and
responsible. It is accountable for its mandates and activities. In brief labour
administration has come to contain elements of participation, credibility,
transparency and responsibility. About the points of strength of labour
administration, the department for government and labour law and administration
of ILO states, “labour administration is an acknowledged actor in the elaboration of
government economic and social policies a major source of information in its fields
of competence for government employer and worker decision-making; an active
intermediary for preventing and setting industrial disputes; an informed decision-
making ;an active intermediary for preventing and settling industrial disputes; an
informed observer of the trends and development of society by virtue of its special
links with social partners; a provider of effective solutions to the evolving needs of
its users.

Some if the specific contribution of labour administration have been the following:
1. Formulation of labour policy consistent with the needs of the society and economy
and taking into account the views of the parties effected;
2. Establishment of uniform standards of labour and adaptation of steps for their
effective observance and enforcement;
3. Improvement of the working and living conditions of workers and protecting
those
who need special protection;
4. Maintenance of industrial peace and harmony;
5. Identification of the rights and obligations of the parties and ensuring their
effective
compeliance;
6. Promotion of co-operation among the parties and encouragement to consultation
with
and participation of the employers and workers;
7. Penalising those not complying with the provisions of laws, rules or regulations;
and
8. Making available the government services for ensuring compliance with the
declared
policies and programmes

Labour matter in the three lists are as follows:

Union list: participation in international conferences, associations and other bodies
implementing their decisions; regulation of Labour and safety in mines and oil
fields, and
industrial dispures concerning union employees, union pension, inter state
migrations, and labour in major ports, railways, posts, telegraphs and telephones,
and air transport, and union agencies and institutions for
a) professional, vocational or technical training and
b) promotion of special studies and research.
Concurrent list trade unions, industrial and labour disputes, social security and
social
insurance, employment and unemployment, welfare of labour including conditions
of work, provident fund, employers liability, workmen’s compensation, invalidity
and old age pension and maternity benefits; vocational and technical training of
labour, labour in factories, boilers and electricity, inquiries and statistics, and
economic and social planning. State list state pension and relief of the disabled and
unemployables
Under articles 256 and 257, the central government is empowered to give directions
to the state government in respect of laws enacted by the parliament. under article
258,the central government can delegate powers to the state governments and
impose duties on them. The central government can also transfer to the state
governments the power to legislate on matters in the concurrent list. A few clauses
of fundamental rights and directive principles of state policy also influenced
subsequent course of labour administration. the relevant fundamental tights are:
freedom of association(art 19), and right against exploitation which prohibits forced
labour, employment of children under 14 years of age in factories, mines and other
hazardous employments, and traffic in human beings (art 23). the directive
principles of state policy enjoin upon the state to direct its policy in such a manner
as to secure to all men and women right to an adequate means of livelihood , equal
pay for equal work, and with in the limits of its economic capacity and development
to make effective provision for securing the right to work, education and to public
assistance in the event of unemployment. old age, sickness and disablement or other
cases of undeserved want. The state is also directed to make endeavour to secure to
workers a living wage humane conditions of work, a decent standard of life and
involvement of workers in management of industries. The policy of the state is also
standard of life and involvement of workers in management of industries. The
policy of the state is also to be directed towards securing that the health and
strength of workers, men and women, and the tender age of children are not abused
and that citizen are not forced by economic necessity to enter avocations unsuited to
their age or strength. The state is further required to ensure that children are given
opportunities and facilities to develop in a healthy manner and in conditions of
freedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment. The directive principles
of state policy are not justice able, but are fundamental in the governance of the
country and it is the duty of the state to apply these principles while making laws,
fundamental rights are justiceable.

Definition of some important terms

Arbitrator – Neutral person to decide on common issue, includes an umpire

Average pay – average wages payable to a workman
(a) In case of monthly paid workman in the three complete calendar months, in the
case of weekly paid, in the four complete weeks, in the case of daily paid workman
in the 12 full working days preceding
Award: An interim or a final determination of any industrial distribute or of any
question
relating there to by any labour (court), industrial Tribunal or national Tribunal and
includes an arbitration award
Conciliation officer: Means conciliation officer appointed under (1) Act to make
conciliatory effort between employer and employees to bring amity.

Labour Court – Means a labour court constituted under (1.D) Act to adjudiciate
over
industrial dispute cases etc.
Public utility Service – (I) Any Railway service or any transport service for carriage
of
passenger or goods by air (2) any service in major port to clock. Postal & Telegraph
Industrial establishments on the working of which the safety of the establishments,
or the
workmen employed there in depends. Industries which supply power light, water to
public Public conservancy or sanitation.
Few others indicated in Schedules.
Settlement :- means a settlement arranged or in the course of conciliation
proceedings and include a written agreement between the employer and workmen
arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties there to in such manner as may be
prescribed and a copy there of has been sent to an officer authorized in this behalf
by the appropriate government and the conciliation officer It means an adjustment
arrived at in the course of conciliation proceeding before a
conciliation officer or before Board of conciliation. It also includes a written
agreement
between the employer and the workmen otherwise than in the conciliation
proceedings. In such a case the agreement must be signed by the parties in the
prescribed manner and a copy of which must be sent to an officer authorized in this
behalf by the appropriate government and the conciliation officer. Thus the
settlement indicates the agreement arrived at either in the conciliation proceedings
or otherwise between employer and the workmen. Unfair labour practice. Generally
to interfere with, restrain from, join or assist a trade union or to engage in
concerted activities for the purpose of collective bargaining or other mutual aid or
protection to establish employer sponsored trade union of workmen, to discharge or
dismiss workmen by way of victimisation, to recruit workmen during a strike which
is not an illegal strike etc.
Details of above are appended.
Wages
All remuneration capable of being expressed in terms of money which would if the
terms of employment expressed or implied, were fulfilled, be payable to a workman
in respect of his employment or of work done in such employment – includes
1. Allowances
2. House revert allowance
3. Traveling concession
4. Commission for sale or business does not include bonus, gratuity provident fund
etc.
Workman Any person employed in an industry to do any manual and unskilled,
skilled, technical, operational Clerical or supervisory work for hire or reward
whether the terms of employment be express or implied, and for the purpose of any
proceeding under 1.D Act in relation to q 1.D includes any such person who has
been dismissed discharged or retrenchment in connection with or as a consequence
of that dispute or whose dismissal discharge or retrenchment has led that dispute,
but does not include – Navy, police, managerial, administrative position holders or
working with wages exceeding one thousand six hundred rupees per month

Strike: Section 2 (q)

Means a cessation of work by a body of persons employed in any industry acting in
combination or 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 to
accept employment. The ingredients can be summed up as
1. A cessation of work
2. This abstinence of work must be by a body of persons employed in an industry
3. The strikers must have been acting in combination.
4. They must be persons working in an industry as per this 1.D Act 1947.
5. There must be concerted refusal or refusal in a common understanding, they
must stop work for some demands relating to this employment or its terms, or
conditions of labour.
The strike may be manifested in different forums like, hunger, sit down, solve down,
pen down, lighting etc.
Lock out : As per section 2 (1) of 1.D Act 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 person employed by him
There is temporary closing of employment.
The elements of demand for which the industry is locked out must be present. The
intention to reopen or take the workers back if they accept the demands, must exist
lock out is not closure it is a tactics in bargaining it is intended for the purpose of
compelling the employee to accept any terms or conditions affecting employment. It
is a weapons in the hands of employers, A lock out declared in consequence of an
illegal strike or a strict declared in consequence of a illegal lock out shall not be
deemed to be illegal.
Lay off : As per section 2 (kkk) of 10 Act means, failure, refusal or inability of an
employer on account of shortage of fuel power or raw materials, or the
accumulation of stock or the breakdown of machinery to give employment to a
workman whose name is on the master rolls of his industrial establishment and who
has not been retrenched.
It is a short term removal of workers.
The essentials of a lay off are failure refusal in ability of the employers to give work
The employees must be permanent in nature at the time of lay off
The failure to give work should be due to reason beyond his powers like
a) a major break down of machinery
b) Shortage of raw material, power, coal etc.
c) Marketing problem of stocks resulting in accumulation
d) Any other act of god beyond employer’s control.
The workman must not have been retrenched
Retrenchment section 2 (oo) of 1.D Act means termination of the services of a
workman by employer for any reason whatsoever otherwise them as a punishment
inflicted by way of disciplinary action, but does not include,
a) Voluntary retirement of the workmen, or
b) retirement of the workman or reaching the age of supermuation
c) 10 Termination (natural) at the end of a contract
d) Termination due to continuous ill health.
Essentials of retrenchment
1. Termination of services of a workman not amounting to dismissal
2. Termination on the ground of surplus labour or staff
3. Service terminated must be a continuous one perpetual in nature.
4. Termination not to victimize or due to unfair labour practice.
5. The above 4 weapons may create industrial relations strain, cause dispute etc.
Attempts by government to safeguard 1R
1. The strikes may be declared illegal if adequate notices are not given if given it
becomes legal and they may get compensation etc if any action is taken by
employer.
2. During lay of which is beyond the control of employers, workers should be
paid ½ the wages for sustenance at least up to 45 days.
3. Lockout can be as a consequence to illegal strike. If strike is withdrawn work
can resume, of course punitive action can be completed.
4. Retrenchment is an extreme action, but when industry comes back to normal
running, the retrenched workers can re establish their lien, and they will be
given preference for absorption

Unfair labour practice as per V schedule of 1.D Act 1947 on the part of employers
or their trade unions:
1. On the part of employers and trade unions of employers:
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right
to organise, form join or assist a trade union or to engage in concerted activities
for the purposes of collective bargaining or mutual aid or protection, that is to say:
a. Threatening workmen with discharge or dismissal, if they join a trade union;
b. Threatening a lock – out or closure, if a trade union is organised;
c. Granting wage increase to workmen at crucial periods of trade union
organization, with a view a undermining the efforts of the trade union at
organization.
2. To dominate, interfere with or contribute, support, financial or otherwise, to any
trade union, that is to say:
a. An employer taking an active interest in organising a trade union of his
workmen, and b. An employer showing partiality or granting favour to one several
trade unions attempting to organise his workmen, or to its members, where such a
trade
union is not a recognised trade union.
c. To establish employer-sponsored trade union of workmen.
3. To encourage or discourage membership in any trade union by discriminating
against any workman, thus is to any:
a. Discharging or punishing a workman, because he urged other workmen to join
or organise a trade union;
b. Discharging or dismissing a workman for taking part in any strike (not being a
strike which deemed to be an illegal strike under this Act) ;
c. Changing seniority rating of workmen because of trade union activities ;
d. Refusing to promote workmen to higher posts on account of their trade union
activities
e. Giving unmerited promotions to certain workmen with a view of creating
discord amongst other workmen, or to undermine the strength of their trade
union;
f. Discharging office-bearers or active members of the trade union on account of
their trade union activities.
4. To discharge or dismiss workmen :
a. By way of victimization ;
b. Not in good faith, but in the Colourable exercise of the employer’s rights ;
c. By falsely implicating a workman in a criminal case of false evidence or on
concocted evidence;
d. For patently false reasons;
e. On untrue or trumped up allegations of absence without leave;
f. In utter disregard of the principles of natural justice in the conduct of domestic
enquiry or with undue haste;
g. For misconduct of a minor or technical character, without having any regard to
the nature of the particular misconduct or the past regard or services workman,
thereby leading to a disproportionate punishment.
5. To abolish the work of a regular nature being done by workmen, and to give such
work to contractors as a measure of breaking a strike.
6. To transfer a workman mala fide from one place to another, under the guise of
following management policy.
7. To insist upon individual workmen, who are on a legal strike to sign a good
conduct bond, as a pre-condition to allowing them to resume work.
8. To show favouritism or partiality to one set of workers, regardless of merit.
9. To employ workmen as budlis, casuals or temporaries and to continue them as
such for years, with the object of depriving them of the status and privileges of
permanent workmen.
10. To discharge or discriminate against any workman for filing charges or
testifying
against an employer in any enquiry or proceeding relating to any industrial
dispute.
11. To recruit workmen during a strike which is not an illegal strike.
12. Failure to implement award, settlement or agreement
13. To indulge in acts of force or violence.
14. To refuse to bargain collectively in good faith with the recognised trade unions.
15. Proposing or continuing a lock-out deemed to the illegal under this Act.
II. On the part of workmen trade unions of workmen
1. To advise or actively support or instigate any strike deemed to be illegal under
this
Act.
2. To coerce workmen in the exercise of their right to self-organization or to join a
trade
union or its members to picketing in such manner that non-striking workmen are
physically debarred from entering the work place;
a. For a trade union or its members to picketing in such a manner that nonstriking
workmen are physically debarred from entering the work place;
b. to indulge in acts of force or violence or to hold out threats of intimidation in
connection with a strike against non-striking workmen or against managerial
staff.
3. For a recognised union or refuse to bargain collectively in good faith with the
employer.
4. To indulge in coercive activities against certification of a bargaining
representative.
5. To stage, encourage or instigate such form of coercive actions as willful “go slow”,
squatting on the work premises after working hour or “gherao” of any of the
members
of the managerial or other staff.
6. To stage demonstrations at the residences of the employers or the managerial
staff
members.
7. To incite or indulge in willful damage to employer’s property connected with the
industry.
8. To indulge in acts of force or violence or to hold out threats of intimidation
against
any workman with a view of preventing him from attending work.
Thus by declaring what are all unfair labour practice through schedules expressly
stating
government has banned such type of dealings. These actions serve to improve
industrial
relations.

International labour organisation, has organised several conventions and India has
ratified several of them out of abort 170 resolutions held by International Labour
Organisation India has ratified 39 resolutions points as per our need environment
requirement and also suiting our culture. Through International Labour
Organisation we come in contact with countries having high industrial standards –
and from there we can adopt pick up and follow better standards for progress
Labour commissions – national commission on labour has suggested establishment
of Industrial relations commission. This could be attempted National labour
conference suggestions as above and regarding strike with 60% participants only
should be taken up for legal consideration and sever penalty clauses for vacation of
employer, employees rights etc should be taken up for further follow up actions in
the interest to improve industrial relations. Machineries for smooth industrial
relations solve industrial disputes they are of three types i. voluntary in built
ii. Through mediators arbitrators.
iii. By Adjudication.
They are
Works Committee. It is a committee formed by representatives of workmen
employers at
workshop level. Equal number of representation of employers and workmen to
ensure
democratic sprit. The works committee duty is to promote measures for securing
and preserving amity and good relations between employers and workmen and to
that end to comment upon matter of their common interest or concern and
endeavors to compose any material difference of opinion in respect of such matters.
The main function is to promote measures for securing and preserving amity and
good relations and for this purpose take steps of adjustments between employers
and workmen so that situation many not turn into industrial dispute.
a) Joint management councils another step in advancing workers participation in
management this will help
1. Promote productivity and general benefit of both management and workers
2. Giving employees a better understanding in the working of industry and of the
process of production.
3. Satisfying the workers urge for self expression thus leading to better industrial
relations. It is felt that areas where both may be in harmony are areas of safety,
health good working condition and proper up keep.
b. Workers participation in management
This participatory forum got a shot in the arms during emergency, one of the twenty
point
programmes envisaged during 1972 worker participation in industry was high
lighted it was to create awareness among the workers of the objectives of the
organisation. It was
contemplated the scheme shall be operated both at the shop floor level and at plant
levels in all public sector undertakings. It will consist of shop plant level workers
and supervisors categories of persons (not managers) both will be equally
represented.
They will discuss about shop level, floor level operational areas, safety and economic
areas personnel matter welfare and environmental areas.
There were workers directors also in the board
c. Collective Bargaining
Here representation of workers and management discuss bargain their necessities in
a given and take style. Discuss about wage and financial matters. This forum also
consists equal number of participants.
2. A Conciliation officers.
It is a recognised process of settling mutual conflict between individuals and groups.
Conciliation officer can call for documents summon waitresses try for a settlement
through conciliation proceedings.
The conciliation officer will hold conciliation proceedings he will assist them
employer and employees (he cannot adjudicate) to arrive at a fair and just
settlement. he is to play the role of an advisor friend of both parties he will
investigate and induce parties to come to be fair and amicable to have a settlement.
If no settlement is reached he will submit detailed report to the government.
b) Board of conciliation
Certain disputes (where the conciliation fails) may be referred to the board they will
investigate the dispute and try for a right settlement the board has powers of a civil
court. The chairman will have two to four persons from both the parties to assist
him.
c) Arbitrators:
In arbitration both the parties seek the help of a third knowledgeable party for a
decision.
Arbitrators are chosen by both parties consensus. This is voluntary arbitration. If
there is
disagreement to get a consensus candidate court may order for an arbitrator.
Whom both
should accept.
d) Commissioners
Can be appointed by government to enquire and report about the occurrence,
dispute etc.
e. Labour court
It is one of the adjudicating machineries. It consists of one person appointed as
presiding
officer of labour court. It provides machinery for investigation and settlement of
industrial dispute it makes provision for constitution of a adjudication machinery
besides the authorities of investigation and settlement of industrial disputes.
Normally labour court presiding officers of Industrial Tribunal.
f. Industrial Tribunal
It consists of one person appointed as presiding officer
They will deal with wages, including mode of payment, compensatory allowances,
hours of work and rest internals, leave with wages and other holidays, bonus profit
sharing, P.F.
gratuity. etc. They will also adjudicate matters of second schedule
g. National Tribunal
If a dispute is of national importance, or of such a nature that industrial
establishment situated in more than ore state are likely to be interested in or
affected by such dispute, and that the dispute should be adjudicated by a national
tribunal the central government may regardless of whether it is the appropriate
government in relation to that dispute or not, refer the dispute to a national tribunal
for adjudication.

FACTORIES ACT, 1948 : FACTORIES ACT, 1948 This Act may be called the Factories Act, 1948. It
extends to the whole of India It shall came into force on the 1st day of April, 1949

Definitions : Definitions "adult" means a person who has completed his eighteenth year of age
"adolescent" means a person who has completed his fifteenth year of age but has not completed his
eighteenth year child means a person who has not completed his fifteenth year of age young
person" means a person who is either a child or an adolescent

Definitions : Definitions “day" means a period of twenty-four hours beginning at midnight; "week"
means a period of seven days beginning at midnight on Saturday night "calendar year" means the
period of twelve months beginning with the first day of January in any year "power" means electrical
energy, or any other form of energy which is mechanically transmitted and is not generated by
human or animal agency; "prime mover" means any engine, motor or other appliance which
generates or otherwise provides power;

Definitions : Definitions "manufacturing process" means any process for- (i) making, altering,
repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or
otherwise treating or adapting any article or substance with a view to its use, sale, transport,
delivery or disposal; or (ii) pumping oil, water, sewage or any other substance; or (iii) generating,
transforming or transmitting power; or (iv) composing types for printing, printing by letter press,
lithography, photogravure or other similar process or book binding (v) constructing, reconstructing,
repairing, refitting, finishing or breaking up ships or vessels; (vi) preserving or storing any article in
cold storage;

Definitions : Definitions "worker" means a person employed, directly or by or through any agency
(including a contractor) with or without the knowledge of the principal employer, whether for
remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or
premises used for a manufacturing process, or in any other kind of work incidental to, or connected
with, the manufacturing process, or but does not include any member of the armed forces of the
Union

Definitions : Definitions "factory" means any premises including the precincts thereof- (i) whereon
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) Whereon 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

Definitions : Definitions "occupier" of a factory means the person who has ultimate control over the
affairs of the factory in the case of a firm or other association of individuals, any one of the
individual partners or members thereof shall be deemed to be the occupier; in the case of a
company, any one of the directors shall be deemed to be the occupier; in the case of a factory
owned or controlled by the Central Government or any State Government, or any local authority, the
person appointed to manage the affairs of the factory Government shall be deemed to be the
occupier

4. Power to declare different departments to be separate factories or two or more factories to be a

single factory : 4. Power to declare different departments to be separate factories or two or more
factories to be a single factory The State Government may, on its own or on an application made by
an occupier, direct that different departments or branches of a factory shall be treated as separate
factories or two or more factories shall be treated as a single factory

5. Power to exempt during public emergency : 5. Power to exempt during public emergency In case
of public emergency the State Government may, exempt any factory from all or any of the provisions
of this Act for such period and subject to such conditions as it may think fit No such notification
shall be made for a period exceeding three months at a time.

6. Approval, licensing and registration of factories : 6. Approval, licensing and registration of

factories Making application to the government If on an application for permission accompanied by
the plans and specifications required by the rules sent to the State Government or Chief Inspectors
by registered post, And no order is communicated to the applicant within three months from the
date on which it is so sent, the permission shall be deemed to have been granted. If the application
is rejected appeal can be made to the government within thirty days of the date of such rejection.

7. Notice by occupier : 7. Notice by occupier (1) The occupier shall, at least fifteen days before he
begins to occupy or use any premises as a factory, send a notice to the Chief Inspector containing-
(a) The name and situation of the factory; (b) the name and address of the occupier; (bb) the name
and address of the owner of the premises (c) the address to which communications relating to the
factory may be sent; (d) the nature of the manufacturing process (e) the total rated horse power
installed or to be installed in the factory (f) the name of the manager of the factory for the purposes
of this Act (g) the number of workers likely to be employed in the factory (i) such other particulars as
may be prescribed.

7A. General duties of the occupier : 7A. General duties of the occupier occupier shall ensure, the
health, safety and welfare of all workers while they are at work in the factory. every occupier shall
prepare, a written statement of his general policy with respect to the health and safety of the workers
bring such statement and any revision thereof to the notice of all the workers

8. Inspectors of Factory : 8. Inspectors of Factory State government may appoint Chief Inspector
Additional Chief Inspectors, Joint Chief Inspectors and Deputy Chief Inspectors and Inspectors of
factory Prescribe their duties and qualifications Every District Magistrate shall be an Inspector for
his district Every inspector is deemed to be a public servant within the meaning of the Indian Penal
Code

9. Powers of Inspectors : 9. Powers of Inspectors Enter factory premises for investigation Examine
the premises inquire into any accident or dangerous occurrence require the production of any
prescribed register or document seize, or take copies of, any register, record or other document take
measurements and photographs and make such recordings exercise such other powers as may be
prescribed no person shall be compelled under this section to answer any question or give any
evidence tending to incriminate himself

10. Certifying surgeons : 10. Certifying surgeons State Government may appoint qualified medical
practitioners to be certifying surgeons Duties of surgeons a) the examination and certification of
young persons under this Act; (b) the examination of persons engaged in factories in such
dangerous occupations or processes C) supervising the factories where (i) cases of illness have
occurred which are due to the nature of the manufacturing process or (ii) due to manufacturing
process there is a likelihood of injury to the health of workers or (iii) young persons are employed in
any work which is likely to cause injury to their health.

11. Cleanliness : 11. Cleanliness Every factory shall be kept clean and free from effluents
accumulation of dirt and refuse shall be removed daily floor of every workroom shall be cleaned at
least once in every week by washing, using disinfectant effective means of drainage shall be
provided and maintained all inside walls and partitions, ceilings, doors, windows shall be painted at
prescribed intervals

12. Disposal of wastes and effluents : 12. Disposal of wastes and effluents Effective arrangements
shall be made for the treatment of wastes and effluents caused due to the manufacturing process
carried on therein, so as to render them innocuous, and for their disposal.

13. Ventilation and temperature : 13. Ventilation and temperature suitable provision shall be made in
every factory for adequate ventilation by the circulation of fresh air such a temperature as will
secure to workers therein reasonable conditions of comfort and prevent injury to health walls and
roofs shall be of such material and so designed that such temperature shall not be exceeded but
kept as low as practicable

14. Dust and fume : 14. Dust and fume effective measures shall be taken to prevent its inhalation and
accumulation in any workroom, and if any exhaust appliance is necessary for this purpose, it shall
be applied as near as possible to the point of origin of the dust, fume or other impurity, and such
point shall be enclosed so far as possible.

15. Artificial humidification : 15. Artificial humidification factories in which the humidity of the air is
artificially increased State government shall prescribe the standard of humidification the water used
for the purpose shall be taken from a public supply, or other source of drinking water, shall be
effectively purified before it is so used.

16. Overcrowding : 16. Overcrowding There shall be 4.2 cubic metres of space for every worker
employed therein, and for this purpose no account shall be taken of any space which is more than
4.2 metres above the level of the floor of the room. notice specifying the maximum number of
workers, which can be employed in any work room shall be displayed in the premises

17. Lighting : 17. Lighting In every part of a factory sufficient lighting shall be maintained all glazed
windows and skylights used for the lighting of the workroom shall be kept clean provision shall, be
made for the prevention of glare, either directly from a source of light or by reflection from a smooth
or polished surface formation of shadows to such an extent as to cause eye-strain or the risk of
accident to any worker shall be prevented.
18. Drinking water : 18. Drinking water Adequate facilities for wholesome drinking water shall be
made at convenient places in the factory All such points shall be legibly marked "drinking water” no
such point shall be situated within six metres of any washing place, urinal, latrine, spittoon, open
drain carrying silages or effluent or any other source of contamination. Factories wherein more than
two hundred and fifty workers are ordinarily employed, provisions shall be made for cooling
drinking water during hot weather

19. Latrines and urinals : 19. Latrines and urinals sufficient latrine and urinal of prescribed types
shall be provided separately for male and female workers They should be properly lighted and
ventilated, and no latrine or urinal shall, communicate with any workroom except through an
intervening open space or ventilated passage be maintained in a clean and sanitary condition at all
times; sweepers shall be employed to clean latrines, urinals and washing places.

20. Spittoons : 20. Spittoons In every factory sufficient number of spittoons shall be maintained in
convenient places and they shall be maintained in a clean and hygienic condition. No person shall
spit within the premises of a factory except in the Spittoons provided for the purpose Whoever spits
in places other than spittoons within factory premises shall be punishable with fine not exceeding
five rupees.

23. Employment of young persons on dangerous machines : 23. Employment of young persons on
dangerous machines No young person shall be allowed to work at any dangerous machine unless
he has been fully instructed as to the dangers arising in connection with the machine and the
precautions to be observed has received sufficient training in work at the machine, or is under
adequate supervision by a person who has a through knowledge and experience of the machine.

27. Prohibition of employment of women and children near cotton-openers : 27. Prohibition of
employment of women and children near cotton-openers No woman or child shall be employed in
any part of a factory for pressing cotton in which a cotton opener is at work without prior approval of
the inspector of factories

CHAPTER V : WELFARE : CHAPTER V : WELFARE facilities for washing shall be provided and
maintained for the use of the male and female workers separately such facilities shall be
conveniently accessible and shall be kept clean Facilities for storing and drying cloth suitable
arrangements for sitting shall be provided and maintained for all workers first-aid boxes or
cupboards, equipped with the prescribed contents one for every one hundred and fifty workers in
charge of a person trained in first aid. Ambulance room in every factory wherein more than five
hundred workers are employed Canteen in the factory wherein more than two hundred and fifty
workers are ordinarily employed, Rest room/lunch room in factories employing more than one
hundred and fifty workers with provision for drinking water, where workers can eat meals brought by
them

CHAPTER V : WELFARE : CHAPTER V : WELFARE Creche facility if more than thirty women are
employed (for the children below six years of age of such working women). Adequately spaced,
lighted and ventilated Milk and refreshments for the children To be in charge of a trained female staff
Allowing mothers to feed the kids at periodic intervals Welfare Officer for factory wherein five
hundred or more workers are employed
CHAPTER VI : WORKING HOURS OF ADULTS : CHAPTER VI : WORKING HOURS OF ADULTS 51.
Weekly hours Not more than 48 hours a week 52. First day of the week shall be a weekly holiday or
one of the days three days before or after the said first day. A notice is delivered to the inspector of
factories A notice is displayed in the factory notice board Cannot be allowed to work continuously
for more than ten days without a full day holiday 53. Compensatory holidays Where a weekly holiday
is denied he shall be allowed to avail the compensatory holiday within a month.

CHAPTER VI : WORKING HOURS OF ADULTS : CHAPTER VI : WORKING HOURS OF ADULTS 54.

Daily working hours- no adult worker shall be allowed to work in a factory for more than nine hours
in any day 55. Intervals for rest-no worker shall work for more than five hours before he has had an
interval for rest of at least half an hour. Inspector may increase it upto six hours 56. Spread over
-inclusive of rest intervals they shall not spread over more than ten and a half hours in any day
Inspector may increase the spread over up to 12 hours 59. Extra wages for overtime-wages at the
rate of twice his ordinary rate of wages 60. Restriction on double employment-No adult worker shall
be required or allowed to work in any factory on any day on which he has already been working in
any other factory 61. Notice of periods of work for adults should be displayed in the notice board.

CHAPTER VI : WORKING HOURS OF ADULTS : CHAPTER VI : WORKING HOURS OF ADULTS 62.

Register of adult workers register of adult workers, to be available to the Inspector at all times
during working hours, or when any work is being carried on in the factory, showing,- (a) the name of
each adult worker in the factory; (b) the nature of his work; (c) the group, if any, in which he is
included; (d) where his group works on shifts, the relay to which he is allotted; and (e) such other
particulars as may be prescribed :

Women not to work at night : Women not to work at night prohibition of women workers at night
shift women shall not be allowed to work in any factory except between the hours of 6 A.M. and 7
P.M.. The inspector may relax this norm but prohibited between 10 P.M. and 5 A.M. 67. Prohibition of
employment of young children Children who have not completed at least 14 years of age are not
allowed to work in factory for children above 14 years of age and adolescent persons certificate of
fitness issued by the certifying surgeons is required for working in the factory. Children and
adolescents are not allowed to work in night shift

71, 72 & 73. Working hours for children : 71, 72 & 73. Working hours for children No child shall be
employed in any factory for more than four and a half hours in any day. during the night. there
shall not be more than two shifts for children Shifts shall not be changed in less than a month time
No female child shall be allowed to work except between 8 A.M. and 7 P.M Notice of working hours
for children should be properly displayed in the notice board Register of children employed should
be maintained in prescribed form.

CHAPTER VIII : ANNUAL LEAVE WITH WAGES : CHAPTER VIII : ANNUAL LEAVE WITH WAGES
Every worker who has worked for at least 240 days in a year will be eligible for leave with wages as
under if an adult, one day for every twenty days of work performed if a child, one day for every
fifteen days of work performed This is exclusive of all holidays Such leave is encashable in case of
retirement, resignation, death, disablement leave that may be carried forward to a succeeding year
shall not exceed thirty in the case of an adult or forty in the case of a child Fifteen days notice is
required for sanction and availing leave (30 days in public utility) Can be availed upto three times in
a year Un availed leave cannot be adjusted against notice period for dismissal/discharge Such leave
shall be with full pay

THE MINES ACT, 1952

Title : THE MINES ACT, 1952

Year : 1952

Act :

THE MINES ACT, 1952.ACT NO. 35 OF 1952 1*

[15th March, 1952.]

An Act to amend and consolidate the law relating to the regulation of labour and
safety in mines.

BE it enacted by Parliament as follows:-

CHAP

PRELIMINARY

CHAPTER I
PRELIMINARY

1.Short title, extend and commencement.

1.(1)Short title, extend and commencement. This Act may be called the Mines Act,
1952.(2) It extends to the whole of India 2 * * * -

(3) It shall come into force on such date3 or dates as the

Central Government may, by notification in the Official Gazette, appoint, and
different dates may be appointed for different provisions of this Act and for different
States but not later than 3lst December,
1953.
2.Definitions.

2. 4 [1] Definitions. In this Act, unless the context otherwise requires,-

(b) "adult" means a person who has completed his eighteenth year;

(c) "agent", when used in relation to a mine, means every person, whether
appointed as such or not, who, acting or purporting to act on behalf of the owner,
takes part in the management, control, supervision or direction of the mine or of any
part thereof )

(d) Chief Inspector means the Chief Inspector of Mines appointed under this Act.

(e) "Committee" means a committee constituted under section

12;

---------------------------------------------------------------------
1Extended to the Union territory of Pondicherry by Act 26 of 1968, S.
3 and Sch.

Extended to Goa, Daman and Diu with modifications by Reg. 12 of 1962, s.3 and SCH.

2The words "except the State of Jammu and Kashmir" omitted by Act 25.of 1968, s.
2 and Sch. (w.e.f. 15-8-1968).

3 1st July,1952,see Notification No. S.R.O. 967, dated 27-5-1952, Gazette of India
1952,Pt. II, See.3, p. 869.4 S. 2 renumbered as sub-section (1) thereof by Act 62 of
1959, s. 2.(w.e.f.16-1-1960).

5 Subs. by s.2 ibid for cl. (c) (w.e.f 16-1-1960)

6. Omitted and subs by Act 42 of 1983,s.2 (w.e.f 31-5-1984)

--------------------------------------------------------------------

24.(f) "day" means a period of twenty-four hours beginning at midnight ;

(g) "district magistrate" means, in a presidency-town, the person appointed by the

Central Government to perform the duties of a district magistrate under this Act in
that town;

2(h)a person is said to be "employed" in a mine who works as the manager or who
works under appointment by the owner;
agent or manager of the mine or with the knowledge of the manager, whether for
wages or not-

(i) in any mining operation (including the concomitant operations of handling and
transport of minerals up to the point of dispatch and of gathering sand and transport
thereof to the mine)

(ii) in operations or services relating to the development of the mine including

construction of plant therein but excluding construction of buildings, roads, wells:
and any building work not directly connected with any existing or future mining
operations;

(iii) in operating, servicing, maintaining or repairing any part of any machinery used
in or about the mine;
(iv) in operations, within the premises of the mine, of loading for dispatch -of
minerals;

(v) in any office of the mine;

(vi) in any welfare, health, sanitary or conservancy, services required to be provided

under this Act, or watch and ward, within the premises of the mine excluding
residential area; or

(vii) in any kind of work whatsoever which is preparatory or incidental to or

connected with mining operations;

(i) "Inspector" means an Inspector of Mines appointed under this

Act, and includes a district magistrate when exercising any power or performing any
duty of an Inspector which he is empowered by this Act to exercise or perform;

3[(j) "mine" means excavation where any operation for, the purpose of searching
for or obtaining minerals has been or is being carried on and includes-

(i) all borings, bore holes, oil wells and accessory crude conditioning plants,
including the pipe conveying mineral oil within the oilfields;

(ii) all shafts, in or adjacent to and belonging to a mine, whether in the course of
being sunk or not;

(iii) all levels and inclined planes in the course of being driven;

(iv) all open cast workings;

(v) all conveyors or aerial ropeways provided for the bringing into or removal from a
mine of minerals or other articles or for the removal of refuse therefrom;

(vi) all edits, levels, planes, machinery, works, railways, tramways and sidings in or
adjacent to and belonging to a mine;

(vii) all protective works being carried out in or adjacent to a mine;

(viii) all workshops and stores situated within the precincts of a mine and under the
same management and used primarily for the purposes connected with that mine or
a number of mines under the same management;

(ix) all power stations, transformer sub-stations, con-

vertor stations, rectifier stations and accumulator storage stations for supplying
electricity solely or mainly for the purpose of working the mine or a number of mines
under the same management;

(x) any premises for the time being used for depositing sand or other material for
use in a mine or for depositing refuse from a mine or in which any operations in
connection with such sand, refuse or other material is being carried on, being
premises exclusively occupied by the owner of the mine;
(xi) any premises in or adjacent to and belonging to a mine on which any process
ancillary to the getting, dressing or preparation for sale of minerals or of coke is
being carried on;]

---------------------------------------------------------------------
1 Ins. by Act 62 of 1959, s. 2 (w.e.f. 16-1-1960).

2 Subs. by s. 2;ibid., for cl. (j) (w.e.f. 16-1-1960).

3 Subs. by Act 42 of 1983 s.2 (w.e.f 31-5-1984]

---------------------------------------------------------------------

25.(jj)"minerals" means all substances which can be obtained from the earth by
mining, digging, drilling, dredging, hydraulicing, quarrying or by any other operation
and includes mineral oils (which in turn include natural gas and petroleum)

(k)" office of the mine " means an office at the surface of the mine concerned ;

1[(kk) "open cast working" means a quarry, that is to say, an excavation where any
operation for the purpose of searching for or obtaining minerals has been or is being
carried on, not being a shaft or an excavation which extends below superjacent
ground ;]

(1) "owner", when used in relation to a mine, means any person who is the
immediate proprietor or lessee or occupier of the mine or of any part thereof and in
the case of a mine the business whereof is being carried on by a liquidator or
receiver such liquidator or receiver but does not include a

---------------------------------------------------------------------

1. Omitted by act 42 of 1983 ,s.2 (w.e.f. 31-5-1984)

---------------------------------------------------------------------

26.person who merely receives a royalty, rent or fine from the mine, or is merely the
proprietor-of the mine, subject to any lease, grant or licence for the working thereof,
or merely the owner of the soil and not interested in the minerals of the mine but
2[any contractor or sub-lessee] for the working of a mine or any, part thereof shall
be subject to this act in like manner as if he were an owner, but not so as to exempt
the owner from any liability;

(m) "prescribed " means prescribed by rules, regulations or bye-

laws, as the case may be;

2[(n) "qualified medical practitioner" means a medical practitioner" who possesses

any recognised medical qualification as defined in clause (h) of section 2 of the
Indian Medical Council Act,
1956 and who is enrolled on a State medical register as defined in clause (k) of that
section"]

(o) " regulations ", " rules " and " bye-laws " mean respectively regulations, rules
and bye-laws made under this Act;

(p) where work of the same kind is carried out by two or more sets of persons
working during different periods of the day each of such sets is called a "relay "
1[and each such periods is called a "
shift "] ;

2[(pp) "reportable injury" means any injury other than a serious bodily injury which
involves, or in all probability will involve, the enforced absence of the injured person
from work for a period of seventy-two hours or more;]

2[(q) "serious bodily injury" means any injury which involves, or in all probability
will involve, the permanent loss of any part or section, of a body, or the use of any
part or section of a body, or the permanent loss of or injury to the sight or hearing or
any permanent physical incapacity or the fracture of any bone or one or more joints
or bones of any phalanges of hand or foot;

(r) "week" means a period of seven days beginning at midnight on

Saturday night or such other night as may be approved in writing for a particular
area by the Chief Inspector or an Inspector";]

1[(2) A person working or employed in or in connection with mine is said to be

working or employed-

(a) "below ground " if he is working or employed-

(i) in a shaft which has been or is in the course being sunk ; or

(ii) in any excavation which extends below superjacent ground ; and

(b) "above ground " if he is working in an open cast working or in any other manner
not specified in clause
(a).]

---------------------------------------------------------------------
1. Ins. by Act 62 of 1959,s.2(w.e,f. 16-1-1960)

2. Subs. by Act 42 of 1983 s.2 (w.e.f.31-5-1984)

---------------------------------------------------------------------

27.3.Act not to apply in certain cases.

1[3. (1) Act not to apply in certain cases. The provisions of this Act, except those
contained in sections 7,8,9,40,45 & 46 shall not apply to-
(a) any mine or part- thereof in which excavation is being made for prospecting
purposes only and not for the purpose of obtaining minerals for use or sale:

Provided that-

(i) not more than twenty persons are employed on any one day in connection with
any such excavation;

(ii) the depth of the excavation measured from its highest to its lowest point
nowhere exceeds six metres or, in the case of an excavation for coal, fifteen metres;
and

(iii)no part of such excavation extends below super-

jacent ground ; or

(b) any mine engaged in the extraction of kankar, murrum, laterite, boulder, gravel,
shingle, ordinary sand (excluding moulding sand, glass sand and other mineral
sands), ordinary clay (excluding kaolin, china clay, white clay or fire clay), building
stone,
2[state,] road metal, earth, fullers earth, [marl, chalk]2 and lime stone:

Provided that-

(i) the workings do not extend below superjacent ground

; or

(ii) where it is an open cast working-

(a) the depth of the excavation measured from its highest to its lowest point
nowhere exceeds six metres ;

(b) the number of persons employed on any one day does not exceed fifty; and

(c) explosives are not used in connection with the excavation.

(2) Notwithstanding anything contained in sub-section (1), the

Central Government may, if it is satisfied that, having regard to the
Circumstances obtaining in relation to a mine or part thereof or group or class of
mines, it is necessary or desirable so to do, by noti-
fication in the Official Gazette, declare that any of the provisions of this Act, not set
out in sub-section (1), shall apply to any such mine or part thereof or group or class
of mines or any class of persons employed therein.

---------------------------------------------------------------------
1 Subs. by Act 62 of 1959, s. 3, for s. 3 (w.e.f. 16-1-1960).

2.subs & Ins. by act 42 of 1983,s.3,(w.e.f.31-5-1984).

---------------------------------------------------------------------
28.(3) Without prejudice to the provisions contained in sub-section
(2), if at any time any of the conditions specified in the proviso to clause (a) or
clause (b) of sub-section (1) is not fulfilled in relation to any mine referred to in that
sub-section, the provisions of this Act not set out in sub-section (1), shall become
immediately applicable, and it shall be the duty of the owner, agent or manager of
the mine to inform the prescribed authority in the prescribed manner and within the
prescribed time about the non-fulfilment.]

4.References to time of day.

4. References to time of day. In this Act, references to time of day are references to
Indian standard time, being five and a half hours ahead of Greenwich mean time:

Provided that, for any area in which Indian standard time is not ordinarily observed,
the Central Government may make rules--

(a) specifying the area ;

(b) defining the local mean time ordinarily observed therein; and

(c) permitting such time to be observed in all or any of the mines situated in the
area.

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

Title : THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

Year : 1970

Act :

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

ACT NO. 37 OF 1970

[5th September, 1970.]

An Act to regulate the employment of contract labour in certain establishments and

to provide for its abolition in certain circumstances and for matters connected
therewith.

BE it enacted by Parliament in the Twenty-first Year of the

Republic of India as follows :--

CHAP
PRELIMINARY

CHAPTER I

PRELIMINARY

1.Short title, extent, commencement and application.

1. Short title, extent, commencement and application.- (1) This

Act may be called the Contract Labour (Regulation and Abolition) Act,
1970.

(2) It extends to the whole of India.

(3) It shall come into force on such date 1* as the Central

Government may, by notification in the Official Gazette, appoint and different dates
may be appointed for different provisions of this Act.

(4) It applies--

(a) to every establishment in which twenty or more workmen are employed or were
employed on any day of the preceding twelve months as contract labour;

(b) to every contractor who employes or who employed on any day of the preceding
twelve months twenty or more workmen:

Provided that the appropriate Government may, after giving not less than two
months notice of its intention so to do, by notification in the Official Gazette, apply
the provisions of this Act to any establishment or contractor employing such number
of workmen less than twenty as may be specified in the notification.

(5) (a) It shall not apply to establishments in which work only of an intermittent or
casual nature is performed.

(b) If a question arises whether work performed in an establishment is of an

intermittent or casual nature, the appropriate
Government shall
---------------------------------------------------------------------
1. 10th February, 1971; vide Notification No. G.S.R. 190 dated 1-2-
1971, Gazette of India, 1971, Pt. II, Sec. 3(i), p.173.502.decide that question after
consultation with the Central Board or, as the case may be, a State Board, and its
decision shall be final.

Explanation.--For the purpose of this sub-section, work performed in an

establishment shall not be deemed to be of an intermittent nature--

(i) if it was performed for more than one hundred and twenty days in the preceding
twelve months, or
(ii) if it is of a seasonal character and is performed for more than sixty days in a
year.

2.Definitions.

2. Definitions.- (1) In this Act, unless the context otherwise requires,--

1*[(a) "appropriate Government" means,--

(i) in relation to an establishment in respect of which the appropriate Government

under the Industrial Disputes
Act, 1947 (14 of 1947), is the Central Government, the
Central Government;

(ii) in relation to any other establishment, the Government of the State in which that
other establishment is situate;]

(b) a workman shall be deemed to be employed as "contract labour" in or in

connection with the work of an establishment when he is hired in or in connection
with such work by or through a contractor, with or without the knowledge of the
principal employer;

(c) "contractor", in relation to an establishment, means a person who undertakes to

produce a given result for the establishment, other than a mere supply of goods of
articles of manufacture to such establishment, through contract labour or who
supplies contract labour for any work of the establishment and includes a sub-
contractor;

(d) "controlled industry" means any industry the control of which by the Union has
been declared by any Central Act to be expedient in the public interest;
---------------------------------------------------------------------
1. Subs. by Act 14 of 1986, s. 2 (w.e.f. 28.1.1986).

503.(e) "establishment" means--

(i) any office or department of the Government or a local authority, or

(ii) any place where any industry, trade, business, manufacture or occupation is
carried on;

(f) "prescribed" means prescribed by rules made under this

Act;

(g) "principal employer" menas--

(i) in relation to any office or department of the

Government or a local authority, the head of that office or department or such other
officer as the
Government or the local authority, as the case may be, may specify in this behalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been
named as the manager of the factory under the Factories Act, 1948.(63 of 1948) the
person so named,

(iii) in a mine, the owner or agent of the mine and where a person has been named
as the manager of the mine, the person so named,

(iv) in any other establishment, any person responsible for the supervision and
control of the establishment.

Explanation.--For the purpose of sub-clause (iii) of this clause, the expressions

"mine", "owner" and "agent" shall have the meanings respectively assigned to them
in clause (j), clause (l) and clause (c)
of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952)

(h) "wages" shall have the meaning assigned to it in clause

(vi) of section 2 of the Payment of Wages Act, 1936 (4.of 1936)

(i) "workman" means any person employed in or in connection with the work of any
establishment to do any skilled, semiskilled or un-skilled manual, supervisory,
technical or clerical work for hire or reward, whether the terms of employment be
express or implied, but does not include any such person--

(A) who is employed mainly in a managerial or administrative capacity; or

(B) who, being employed in a superviory capacity draws wages exceeding five
hundred rupees per mensem or exercises, either by the nature of the duties attached
to the office or by reason of the powers vested in him, functions mainly of a
managerial nature; or

504.(C) who is an out-worker, that is to say, a person to whom any articles or

materials are given out by or on behalf of the Principal employer to be made up,
cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise
processed for sale for the purposes of the trade or business of the principal
employer and the process is to be carried out either in the home of the out-worker or
in some other premises, not being premises under the control and management of
the principal employer.

(2) Any reference in this Act to a law which is not in force in the State of Jammu and
Kashmir shall, in relation to that State, be construed as a reference to the
corresponding law, if any, in force in that State.

Module- II

MINIMUM WAGES ACT 1948

THE MINIMUM WAGES ACT, 1948

ACT NO. 11 OF 1948 1*

[15th March, 1948.]

An Act to provide for fixing minimum rates of wages in certain employments.

WHEREAS it is expedient to provide for fixing minimum rates of wages in certain
employments; It is hereby enacted as follows:--

Short title and extent.

1. Short title and extent.-(1) This Act may be called the Minimum Wages Act, 1948.

(2) It extends to the whole of India 2***.

Interpretation. 2. Interpretation.- In this Act, unless there is anything repugnant in

the subject context,-- 3*[(a) "adolescent" means a person who has completed his
fourteenth year of age but has not completed his eighteenth year; (aa) "adult"
means a person who has completed his eighteenth year of age;] (b) "appropriate
Government" means,-- (i) in relation to any scheduled employment carried on by or
under the authority of the 4*[Central Government or a railway administration], or
in relation to a mine, oilfield or major port, or any corporation established by 5*[a
Central Act], the Central Government, and (ii) in relation to any other scheduled
employment, the State Government; 6*[(bb) "child" means a person who has not
completed his fourteenth year of age;] (c) "competent authority" means the
authority appointed by the appropriate Government by notification in its Official
Gazette to ascertain from time to time the cost of living index number applicable to
the employees employed in the scheduled employments specified in such
notification; --------------------------------------------------------------------- 1. This Act has
been extended to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. I;
Pondicherry by Reg. 7 of 1963, s. 3 and Sch. I; Laccadive, Minicoy and Amindivi
Islands by Reg. 8 of 1965, s. 3 and Sch. and Union Territory of Goa, Daman and Diu
by Notification No. G.S.R. 436, dated 16-4-1973, Gazette of India, Pt. II, Sec. 3(i), p.

This Act has been amended in Uttar Pradesh by Uttar Pradesh Act 20 of 1960 (w.e.f.
1-1-1960). Bihar by Bihar Act 3 of 1961, Maharashtra by Maharashtra Act 10 of
1961, Andhra Pradesh by Andhra Pradesh Act 19 of 1961, Gujarat by Gujarat Act
22 of 1961, Madhya Pradesh by Madhya Pradesh Act 11 of 1959, Kerala by Kerala
Act 18 of 1960, Rajasthan by Rajasthan Act 4 of 1969, Madhya Pradesh by Madhya
Pradesh Act 36 of 1976 and Maharashtra by Maharashtra Act 25 of 1976. 2. The
words "except the State of Jammu and Kashmir" omitted by Act 51 of 1970, s. 2
and Sch. (w.e.f. 1-9-1971). 3. Subs. by Act 61 of 1986, s. 23. 4. Subs. by Act 30 of
1957, s. 2, for "Central Government, by a railway administration". 5. Subs. by the
A. O. 1950, for "an Act of the Central Legislature". 6. Ins. by Act 61 of 1986, s. 23.
202 (d) "cost of living index number", in relation to employees in any scheduled
employment in respect of which minimum rates of wages have been fixed, means the
index number ascertained and declared by the competent authority by notification
in the Official Gazette to be the cost of living index number applicable to employees
in such employment; (e) "employer" means any person who employs, whether
directly or through another person, or whether on behalf of himself or any other
person, one or more employees in any scheduled employment in respect of which
minimum rates of wages have been fixed under this

Act, and includes, except in sub-section (3) of section 26,-- (i) in a factory where
there is carried on any scheduled employment in respect of which minimum rates of
wages have been fixed under this Act, any person named under 1*[clause (f) of sub-

section (1) of section 7 of the Factories Act, 1948 (63 of 1948)], as manager of the
factory; (ii) in any scheduled employment under the control of any Government in
India in respect of which minimum rates of wages have been fixed under this Act,
the person or authority appointed by such Government for the supervision and
control of employees or where no person or authority is so appointed, the head of
the department; (iii) in any scheduled employment under any local authority in
respect of which minimum rates of wages have been fixed under this Act, the person
appointed by such authority for the supervision and control of employees or where
no person is so appointed, the chief executive officer of the local authority; (iv) in
any other case where there is carried on any scheduled employment in respect of
which minimum rates of wages have been fixed under this Act, any person
responsible to the owner for the supervision and control of the employees or for the
payment of wages; (f) "prescribed" means prescribed by rules made under this Act;
---------------------------------------------------------------------

1. Subs. by Act 26 of 1954, s. 2, for "clause (e) of sub-section (1) of section 9 of the
Factories Act, 1934". 203 (g) "scheduled employment" means an employment
specified in the Schedule, or any process or branch of work forming part of such
employment; (h) "wages" means all remuneration, capable of being expressed in
terms of money, which would, if the terms of the contract of employment, express or
implied, were fulfilled, be payable to a person employed in respect of his
employment or of work done in such employment, 1*[and includes house rent
allowance], but does not include-- (i) the value of-- (a) any house-accommodation,
supply of light, water, medical attendance, or (b) any other amenity or any service
excluded by general or special order of the appropriate Government; (ii) any
contribution paid by the employer to any Pension Fund or Provident Fund or under
any scheme of social insurance; (iii) any travelling allowance or the value of any
travelling concession; (iv) any sum paid to the person employed to defray special
expenses entailed on him by the nature of his employment; or (v) any gratuity
payable on discharge; (i) "employee" means any person who is employed for hire or
reward to do any work, skilled or unskilled, manual or clerical, in a scheduled
employment in respect of which minimum rates of wages have been fixed; and
includes an out-worker to whom any articles or materials are given out by another
person to be made up, cleaned, washed, altered, ornamented, finished, repaired,
adapted or otherwise processed for sale for the purposes of the trade or business of
that other person where the process is to be carried out either in the home of the
out-worker or in some other premises not being premises under the control and
management of that other person; and also includes an employee declared to be an
employee by the appropriate Government; but does not include any member of the
Armed Forces of the 2*[Union].
--------------------------------------------------------------------- 1. Ins. by Act 30 of 1957, s. 2.
2. Subs. by the A. O. 1950 for "Crown". 204

Fixing of minimum rates of wages.

3. Fixing of minimum rates of wages.- 1*[(1) The appropriate Government shall, in

the manner hereinafter provided,-- 2*[(a) fix the minimum rates of wages payable to
employees employed in an employment specified in Part I or Part II of the Schedule
and in an employment added to either Part by notification under section 27:
Provided that the appropriate Government may, in respect of employees employed
in an employment specified in Part II of the Schedule, instead of fixing minimum
rates of wages under this clause for the whole State, fix such rates for a part of the
State or for any specified class or classes of such employment in the whole State or
part thereof;] (b) review at such intervals as it may think fit, such intervals not
exceeding five years, the minimum rates of wages so fixed and revise the minimum
rates, if necessary: 3*[Provided that where for any reason the appropriate
Government has not reviewed the minimum rates of wages fixed by it in respect of
any scheduled employment within any interval of five years, nothing contained in
this clause shall be deemed to prevent it from reviewing the minimum rates after the
expiry of the said period of five years and revising them, if necessary, and until they
are so revised the minimum rates in force immediately before the expiry of the said
period of five years shall continue in force.]

(1A) Notwithstanding anything contained in sub-section (1), the appropriate

Government may refrain from fixing minimum rates of wages in respect of any
scheduled employment in which there are in the whole State less than one thousand
employees engaged in such employment, but if at any time, 4*** the appropriate
Government comes to a finding after such inquiry as it may make or cause to be
made in this behalf that the number of employees in any scheduled employment in
respect of which it has refrained from fixing minimum rates of wages has risen to
one thousand or more, it shall fix minimum rates of wages payable to employees in
such employment 5*[as soon as may be after such finding].]

(2) The appropriate Government may fix,-- (a) a minimum rate of wages for time
work (hereinafter referred to as "a minimum time rate");
---------------------------------------------------------------------

1. Subs. by Act 26 of 1954, s. 3, for sub-section (1). 2. Subs. by Act 31 of 1961, s. 2,

for cl. (a). 3. Added by Act 30 of 1957, s. 3. 4. Certain words, brackets and figure
omitted by Act 31 of 1961, s. 2. 5. Subs. by s. 2, ibid., for certain words. 205 (b) a
minimum rate of wages for piece work (hereinafter referred to as "a minimum piece
rate"); (c) a minimum rate of remuneration to apply in the case of employees
employed on piece work for the purpose of securing to such employees a minimum
rate of wages on a time work basis (hereinafter referred to as "a guaranteed time
rate"); (d) a minimum rate (whether a time rate or a piece rate) to apply in
substitution for the minimum rate which would otherwise be applicable, in respect
of overtime work done by employees (hereinafter referred to as "overtime rate").
1*[(2A) Where in respect of an industrial dispute relating to the rates of wages
payable to any of the employees employed in a scheduled employment, any
proceeding is pending before a Tribunal or National Tribunal under the Industrial
Disputes Act, 1947 (14 of 1947.) or before any like authority under any other law for
the time being in force, or an award made by any Tribunal, National Tribunal or
such authority is in operation, and a notification fixing or revising the minimum
rates of wages in respect of the scheduled employment is issued during the pendency
of such proceeding or the operation of the award, then, notwithstanding anything
contained in this Act, the minimum rates of wages so fixed or so revised shall not
apply to those employees during the period in which the proceeding is pending and
the award made therein is in operation or, as the case may be, where the notification
is issued during the period of operation of an award, during that period; and where
such proceeding or award relates to the rates of wages payable to all the employees
in the scheduled employment, no minimum rates of wages shall be fixed or revised
in respect of that employment during the said period.]

(3) In fixing or revising minimum rates of wages under this section,-- (a) different
minimum rates of wages may be fixed for-- (i) different scheduled employments; (ii)
different classes of work in the same scheduled employment; (iii) adults, adolescents,
children and apprentices; (iv) different localities; 2*[(b) minimum rates of wages
may be fixed by any one or more of the following wage periods, namely:-- (i) by the
hour, --------------------------------------------------------------------- 1. Ins. by Act 31 of
1961, s. 2. 2. Subs. by Act 30 of 1957, s. 3, for the original clause, excluding the
proviso. 206 (ii) by the day, (iii) by the month, or (iv) by such other larger wage-
period as may be prescribed; and where such rates are fixed by the day or by the
month, the manner of calculating wages for a month or for a day, as the case may
be, may be indicated:] Provided that where any wage-periods have been fixed under
section 4 of the Payment of Wages Act, 1936 (4 of 1936), minimum wages shall be
fixed in accordance therewith.

Minimum rate of wages.

4. Minimum rate of wages.-(1) Any minimum rate of wages fixed or revised by the
appropriate Government in respect of scheduled employments under section 3 may
consist of-- (i) a basic rate of wages and a special allowance at a rate to be adjusted,
at such intervals and in such manner as the appropriate Government may direct, to
accord as nearly as practicable with the variation in the cost of living index number
applicable to such workers (hereinafter referred to as the "cost of living
allowance"); or (ii) a basic rate of wages with or without the cost of living allowance,
and the cash value of the concessions in respect of supplies of essential commodities
at concession rates, where so authorized; or (iii) an all-inclusive rate allowing for the
basic rate, the cost of living allowance and the cash value of the concessions, if any.

(2) The cost of living allowance and the cash value of the concessions in respect of
supplies of essential commodities at concession rates shall be computed by the
competent authority at such intervals and in accordance with such directions as
may be specified or given by the appropriate Government.

Procedure for fixing and revising minimum wages.

1*[5. Procedure for fixing and revising minimum wages.- (1) In fixing minimum
rates of wages in respect of any scheduled employment for the first time under this
Act or in revising minimum rates of wages so fixed, the appropriate Government
shall either-- (a) appoint as many committees and sub-committees as it considers
necessary to hold enquiries and advise it in respect of such fixation or revision, as
the case may be, or --------------------------------------------------------------------- 1. Subs.
by Act 30 of 1957, s. 4, for the original section. 206A (b) by notification in the
Official Gazette, publish its proposals for the information of persons likely to be
affected thereby and specify a date, not less than two months from the date of the
notification, on which the proposals will be taken into consideration.

(2) After considering the advice of the committee or committees

appointed under clause (a) of sub-section (1), or as the case may be, all
representations received by it before the date specified in the notification under
clause (b) of that sub-section, the appropriate Government shall, by notification in
the Official Gazette, fix, or, as the case may be, revise the minimum rates of wages
in respect of each scheduled employment, and unless such notification otherwise 207
provides, it shall come into force on the expiry of three months from the date of its
issue: Provided that where the appropriate Government proposes to revise the
minimum rates of wages by the mode specified in clause (b) of sub-

section (1), the appropriate Government shall consult the Advisory Board also.]

[Repealed.] 6. [Advisory committees and sub-committees.]-Rep. by the Minimum

Wages (Amendment) Act, 1957 (30 of 1957), s. 5.

Advisory Board. 7. Advisory Board.- For the purpose of co-ordinating the work of
1*[committees and sub-committees appointed under section 5] and advising the
appropriate Government generally in the matter of fixing and revising minimum
rates of wages, the appropriate Government shall appoint an Advisory Board.

Central Advisory Board.

8. Central Advisory Board.- (1) For the purpose of advising the Central and State
Governments in the matters of the fixation and revision of minimum rates of wages
and other matters under this Act and for co-ordinating the work of the Advisory
Boards, the Central Government shall appoint a Central Advisory Board.

(2) The Central Advisory Board shall consist of persons to be nominated by the
Central Government representing employers and employees in the scheduled
employments, who shall be equal in number, and independent persons not exceeding
one-third of its total number of members; one of such independent persons shall be
appointed the Chairman of the Board by the Central Government.

Composition of committees, etc. 9. Composition of committees, etc.- Each of the

committees, sub- committees 2*** and the Advisory Board shall consist of persons
to be nominated by the appropriate Government representing employers and
employees in the scheduled employments, who shall be equal in number, and
independent persons not exceeding one-third of its total number of members; one of
such independent persons shall be appointed the Chairman by the appropriate
Government.

Correction of errors.

3*[10. Correction of errors.- (1) The appropriate Government may, at any time, by
notification in the Official Gazette, correct clerical or arithmetical
--------------------------------------------------------------------- 1. Subs. by Act 30 of 1957, s.
6, for "committees, sub-committees, advisory committees and advisory sub-
committees appointed under sections 5 and 6". 2. The words "advisory committees,
advisory sub-committees" omitted by s. 7, ibid. 3. Subs. by s. 8, ibid., for the original
section. 208 mistakes in any order fixing or revising minimum rates of wages under
this Act, or errors arising therein from any accidental slip or omission.

(2) Every such notification shall, as soon as may be after it is issued, be placed
before the Advisory Board for information.]

Wages in kind.

11. Wages in kind.-(1) Minimum wages payable under this Act shall be paid in cash.

(2) Where it has been the custom to pay wages wholly or partly in kind, the
appropriate Government being of the opinion that it is necessary in the
circumstances of the case may, by notification in the Official Gazette, authorize the
payment of minimum wages either wholly or partly in kind.

(3) If the appropriate Government is of the opinion that provision should be made
for the supply of essential commodities at concession rates, the appropriate
Government may, by notification in the Official Gazette, authorize the provision of
such supplies at concession rates.
(4) The cash value of wages in kind and of concessions in respect of supplies of
essential commodities at concession rates authorized

under sub-sections (2) and (3) shall be estimated in the prescribed manner.

Payment of minimum rates of wages.

12. Payment of minimum rates of wages.- (1) Where in respect of any scheduled
employment a notification under section 5 1*** is in force, the employer shall pay to
every employee engaged in a scheduled employment under him wages at a rate not
less than the minimum rate of wages fixed by such notification for that class of
employees in that employment without any deductions except as may be authorized
within such time and subject to such conditions as may be prescribed.

(2) Nothing contained in this section shall affect the provisions of the Payment of
Wages Act, 1936 (4 of 1936).

Fixing hours for a normal working day, etc.

13. Fixing hours for a normal working day, etc.-2*[(1)] In regard to any scheduled
employment minimum rates of wages in respect of which have been fixed under this
Act, the appropriate Government may-- (a) fix the number of hours of work which
shall constitute a normal working day, inclusive of one or more specified intervals;
--------------------------------------------------------------------- 1. The words and figures "or
section 10" omitted by Act 30 of 1957, s. 9.

2. S. 13 re-numbered as sub-section (1) of that section by s. 10, ibid. 209 (b) provide
for a day of rest in every period of seven days which shall be allowed to all
employees or to any specified class of employees and for the payment of
remuneration in respect of such days of rest; (c) provide for payment for work on a
day of rest at a rate not less than the overtime rate.

1*[(2) The provisions of sub-section (1) shall, in relation to the following classes of
employees, apply only to such extent and subject to such conditions as may be
prescribed :-- (a) employees engaged on urgent work, or in any emergency which
could not have been foreseen or prevented; (b) employees engaged in work in the
nature of preparatory or complementary work which must necessarily be carried on
outside the limits laid down for the general working in the employment concerned;
(c) employees whose employment is essentially intermittent; (d) employees engaged
in any work which for technical reasons has to be completed before the duty is over;
(e) employees engaged in a work which could not be carried on except at times
dependent on the irregular action of natural forces.

(3) For the purposes of clause (c) of sub-section (2), employment of an employee is
essentially intermittent when it is declared to be so by the appropriate Government
on the ground that the daily hours of duty of the employee, or if there be no daily
hours of duty as such for the employee, the hours of duty, normally include periods
of inaction during which the employee may be on duty but is not called upon to
display either physical activity or sustained attention.]

Overtime.

14. Overtime.- (1) Where an employee, whose minimum rate of wages is fixed under
this Act by the hour, by the day or by such a longer wage-period as may be
prescribed, works on any day in excess of the number of hours constituting a
normal working day, the employer shall pay him for every hour or for part of an
hour so worked in excess at the overtime rate fixed under this Act or under any law
of the appropriate Government for the time being in force, whichever is higher.
--------------------------------------------------------------------- 1. Added by Act 30 of 1957, s.
10. 210

(2) Nothing in this Act shall prejudice the operation of the provisions of 1*[section
59 of the Factories Act, 1948 (63 of 1948) ] in any case where those provisions are
applicable.

Wages of worker who works for less than normal working day. 15. Wages of worker
who works for less than normal working day.- If an employee whose minimum rate
of wages has been fixed under this Act by the day works on any day on which he
was employed for a period less than the requisite number of hours constituting a
normal working day, he shall, save as otherwise hereinafter provided, be entitled to
receive wages in respect of work done by him on that day as if he had worked for a
full normal working day: Provided, however, that he shall not be entitled to receive
wages for a full normal working day-- (i) in any case where his failure to work is
caused by his unwillingness to work and not by the omission of the employer to
provide him with work, and (ii) in such other cases and circumstances as may be
prescribed.

Wages for two or more classes of work. 16. Wages for two or more classes of work.-
Where an employee does two or more classes of work to each of which a different
minimum rate of wages is applicable, the employer shall pay to such employee in
respect of the time respectively occupied in each such class of work, wages at not less
than the minimum rate in force in respect of each such class.

Minimum time rate wages for piece work. 17. Minimum time rate wages for piece
work.- Where an employee is employed on piece work for which minimum time rate
and not a minimum piece rate has been fixed under this Act, the employer shall pay
to such employee wages at not less than the minimum time rate.

Maintenance of registers and records.

18. Maintenance of registers and records.- (1) Every employer shall maintain such
registers and records giving such particulars of employees employed by him, the
work performed by them, the wages paid to them, the receipts given by them and
such other particulars and in such form as may be prescribed.

(2) Every employer shall keep exhibited, in such manner as may be prescribed, in
the factory, workshop or place where the employees in the scheduled employment
may be employed, or in the case of out- workers, in such factory, workshop or place
as may be used for giving out-work to them, notices in the prescribed form
containing prescribed particulars.
--------------------------------------------------------------------- 1. Subs. by Act 26 of 1954, s.
4, for "section 47 of the Factories Act, 1934". 211

(3) The appropriate Government may, by rules made under this Act, provide for the
issue of wage books or wage slips to employees employed in any scheduled
employment in respect of which minimum rates of wages have been fixed and
prescribe the manner in which entries shall be made and authenticated in such wage
books or wage slips by the employer or his agent.

Inspectors.

19. Inspectors.- (1) The appropriate Government may, by notification in the Official
Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of
this Act, and define the local limits within which they shall exercise their functions.

(2) Subject to any rules made in this behalf, an Inspector may, within the local limits
for which he is appointed-- (a) enter, at all reasonable hours, with such assistants (if
any), being persons in the service of the Government or any local or other public
authority, as he thinks fit, any premises or place where employees are employed or
work is given out to out-workers in any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act, for the purpose of
examining any register, record of wages or notices required to be kept or exhibited
by or under this Act or rules made thereunder, and require the production thereof
for inspection; (b) examine any person whom he finds in any such premises or place
and who, he has reasonable cause to believe, is an employee employed therein or an
employee to whom work is given out therein; (c) require any person giving out-work
and any out-workers, to give any information, which is in his power to give, with
respect to the names and addresses of the persons to, for and from whom the work
is given out or received, and with respect to the payments to be made for the work;
1*[(d) seize or take copies of such register, record of wages or notices or portions
thereof as he may consider relevant in respect of an offence under this Act which he
has reason to believe has been committed by an employer; and] (e) exercise such
other powers as may be prescribed.
--------------------------------------------------------------------- 1. Subs. by Act 30 of 1957, s.
11, for the original clause. 212

(3) Every Inspector shall be deemed to be a public servant within the meaning of the
Indian Penal Code (45 of 1860).
1*[(4) Any person required to produce any document or thing or to

give any information by an Inspector under sub-section (2) shall be deemed to be

legally bound to do so within the meaning of section 175 and section 176 of the
Indian Penal Code (45 of 1860).]

Claims.

20. Claims.- (1) The appropriate Government may, by notification in the Official
Gazette, appoint 2*[any Commissioner for Workmen's Compensation or any officer
of the Central Government exercising functions as a Labour Commissioner for any
region, or any officer of the State Government not below the rank of Labour
Commissioner or any] other officer with experience as a Judge of a Civil Court or as
a stipendiary Magistrate to be the Authority to hear and decide for any specified
area all claims arising out of payment of less than the minimum rates of wages 3*[or
in respect of the payment of remuneration for days of rest or for work done on such
days under clause (b) or

clause (c) of sub-section (1) of section 13 or of wages at the overtime rate under
section 14,] to employees employed or paid in that area.

(2) 4*[Where an employee has any claim of the nature referred to

in sub-section (1)], the employee himself, or any legal practitioner or any official of a
registered trade union authorized in writing to act on his behalf, or any Inspector,
or any person acting with the

permission of the Authority appointed under sub-section (1), may apply

to such Authority for a direction under sub-section (3): Provided that every such
application shall be presented within six months from the date on which the
minimum wages 3*[or other amount] became payable: Provided further that any
application may be admitted after the said period of six months when the applicant
satisfies the Authority that he had sufficient cause for not making the application
within such period.

5*[(3) When any application under sub-section (2) is entertained, the Authority
shall hear the applicant and the employer, or give them an opportunity of being
heard, and after such further inquiry, if any,
--------------------------------------------------------------------- 1. Ins. by Act 30 of 1957, s.
11. 2. Subs. by s. 12, ibid., for "any Commissioner for Workmen's Compensation
or". 3. Ins. by s. 12, ibid. 4. Subs. by s. 12, ibid., for "Where an employee is paid less
than the minimum rates of wages fixed for his class of work under this Act". 5.
Subs. by s. 12, ibid., for the original sub-section. 213 as it may consider necessary,
may, without prejudice to any other penalty to which the employer may be liable
under this Act, direct-- (i) in the case of a claim arising out of payment of less than
the minimum rates of wages, the payment to the employee of the amount by which
the minimum wages payable to him exceed the amount actually paid, together with
the payment of such compensation as the Authority may think fit, not exceeding ten
times the amount of such excess; (ii) in any other case, the payment of the amount
due to the employee, together with the payment of such compensation as the
Authority may think fit, not exceeding ten rupees, and the Authority may direct
payment of such compensation in cases where the excess or the amount due is paid
by the employer to the employee before the disposal of the application.]

(4) If the Authority hearing any application under this section is satisfied that it was
either malicious or vexatious, it may direct that a penalty not exceeding fifty rupees
be paid to the employer by the person presenting the application.

(5) Any amount directed to be paid under this section may be recovered-- (a) if the
Authority is a Magistrate, by the Authority as if it were a fine imposed by the
Authority as a Magistrate, or (b) if the Authority is not a Magistrate, by any
Magistrate to whom the Authority makes application in this behalf, as if it were a
fine imposed by such Magistrate.

(6) Every direction of the Authority under this section shall be final.

(7) Every Authority appointed under sub-section (1) shall have all the powers of a
Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of
taking evidence and of enforcing the attendance of witnesses and compelling the
production of documents, and every such Authority shall be deemed to be a Civil
Court for all the purposes of section 195 and Chapter XXXV of the Code of
Criminal Procedure, 1898 (5 of 1898).

Single application in respect of a number of employees.

21. Single application in respect of a number of employees.- (1) 1*[Subject to such

rules as may be prescribed, a single application] may be presented under section 20
on behalf or in respect --------------------------------------------------------------------- 1.
Subs. by Act 30 of 1957, s. 13, for "A single application". 214 of any number of
employees employed in the scheduled employment in respect of which minimum
rates of wages have been fixed and in such cases the maximum compensation which
may be awarded under sub-section

(3) of section 20 shall not exceed ten times the aggregate amount of such excess 1*[or
ten rupees per head, as the case may be].

(2) The Authority may deal with any number of separate pending applications
presented under section 20 in respect of employees in the scheduled employments in
respect of which minimum rates of wages have
been fixed, as a single application presented under sub-section (1) of this section and
the provisions of that sub-section shall apply accordingly.

Penalties for certain offences. 2*[22. Penalties for certain offences.- Any employer
who-- (a) pays to any employee less than the minimum rates of wages fixed for that
employee's class of work, or less than the amount due to him under the provisions of
this Act, or (b) contravenes any rule or order made under section 13, shall be
punishable with imprisonment for a term which may extend to six months, or with
fine which may extend to five hundred rupees, or with both: Provided that in
imposing any fine for an offence under this section, the Court shall take into
consideration the amount of any compensation already awarded against the accused
in any proceedings taken under section 20. 22A. General provision for punishment
of other offences. 22A. General provision for punishment of other offences.- Any
employer who contravenes any provision of this Act or of any rule or order made
thereunder shall, if no other penalty is provided for such contravention by this Act,
be punishable with fine which may extend to five hundred rupees. 22B. Cognizance
of offences.

22B. Cognizance of offences.- (1) No Court shall take cognizance of a complaint

against any person for an offence-- (a) under clause (a) of section 22 unless an
application in respect of the facts constituting such offence has been presented
under section 20 and has been granted wholly or in part, and the appropriate
Government or an officer --------------------------------------------------------------------- 1.
Added by Act 30 of 1957, s. 13. 2. Ss. 22 to 22F subs. by s. 14, ibid., for the original s.
22. 215 authorised by it in this behalf has sanctioned the making of the complaint;
(b) under clause (b) of section 22 or under section 22A except on a complaint made
by, or with the sanction of, an Inspector.

(2) No Court shall take cognizance of an offence-- (a) under clause (a) or clause (b)
of section 22, unless complaint thereof is made within one month of the grant of
sanction under this section; (b) under section 22A, unless complaint thereof is made
within six months of the date on which the offence is alleged to have been
committed. 22C. Offences by companies.

22C. Offences by companies.- (1) If the person committing any offence under this
Act is a company, every person who at the time the offence was committed, was
incharge of, and was responsible to, the company for the conduct of the business of
the company as well as the company shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished accordingly: Provided that
nothing contained in this sub-section shall render any such person liable to any
punishment provided in this Act if he proves that the offence was committed
without his knowledge or that he exercised all due diligence to prevent the
commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under

this Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any neglect on the
part of, any director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer of the company shall also be deemed to
be guilty of that offence and shall be liable to be proceeded against and punished
accordingly. Explanation.--For the purposes of this section,-- (a) "company" means
any body corporate and includes a firm or other association of individuals, and (b)
"director" in relation to a firm means a partner in the firm. 22D. Payment of
undisbursed amounts due to employees. 22D. Payment of undisbursed amounts due
to employees.- All amounts payable by an employer to an employee as the amount of
minimum wages of the employee under this Act or otherwise due to the employee
under this Act or any rule or order made thereunder shall, if such amounts could
not or cannot be paid to the 216 employee on account of his death before payment
or on account of his whereabouts not being known, be deposited with the prescribed
authority who shall deal with the money so deposited in such manner as may be
prescribed. 22E. Protection against attachment of assets of employer with
Government. 22E. Protection against attachment of assets of employer with
Government.-Any amount deposited with the appropriate Government by an
employer to secure the due performance of a contract with that Government and
any other amount due to such employer from that Government in respect of such
contract shall not be liable to attachment under any decree or order of any Court in
respect of any debt or liability incurred by the employer other than any debt or
liability incurred by the employer towards any employee employed in connection
with the contract aforesaid. 22F. Application of Payment of Wages Act, 1936, to
scheduled employments. 22F. Application of Payment of Wages Act, 1936, to
scheduled

employments.- (1) Notwithstanding anything contained in the Payment of Wages

Act, 1936 (4 of 1936). the appropriate Government may, by notification in the
Official Gazette, direct that, subject to the

provisions of sub-section (2), all or any of the provisions of the said Act shall with
such modifications, if any, as may be specified in the notification, apply to wages
payable to employees in such scheduled employments as may be specified in the
notification.

(2) Where all or any of the provisions of the said Act are applied to wages payable to
employees in any scheduled employment

under sub-section (1), the Inspector appointed under this Act shall be deemed to be
the Inspector for the purpose of enforcement of the provisions so applied within the
local limits of his jurisdiction.]

Exemption of employer from liability in certain cases. 23. Exemption of employer

from liability in certain cases.- Where an employer is charged with an offence
against this Act, he shall be entitled, upon complaint duly made by him, to have any
other person whom he charges as the actual offender, brought before the Court at
the time appointed for hearing the charge; and if, after the commission of the
offence has been proved, the employer proves to the satisfaction of the Court-- (a)
that he has used due diligence to enforce the execution of this Act, and (b) that the
said other person committed the offence in question without his knowledge, consent
or connivance, that other person shall be convicted of the offence and shall be liable
to the like punishment as if he were the employer and the employer shall be
discharged: Provided that in seeking to prove, as aforesaid, the employer may be
examined on oath, and the evidence of the employer or his witness, if any, shall be
subject to cross-examination by or on behalf 216A of the person whom the employer
charges as the actual offender and by the prosecution.

Bar of suits. 24. Bar of suits.- No Court shall entertain any suit for the recovery of
wages in so far as the sum so claimed-- (a) forms the subject of an application under
section 20 which has been presented by or on behalf of the plaintiff, or (b) has
formed the subject of a direction under that section in favour of the plaintiff, or (c)
has been adjudged in any proceeding under that section not to be due to the
plaintiff, or (d) could have been recovered by an application under that section.

Contracting out. 25. Contracting out.- Any contract or agreement, whether made
before or after the commencement of this Act, whereby an employee either
relinquishes or reduces his right to a minimum rate of wages or any privilege or
concession accruing to him under this Act shall be null and void in so far as it
purports to reduce the minimum rate of wages fixed under this Act.

Exemptions and exceptions.

26. Exemptions and exceptions.- (1) The appropriate Government may, subject to
such conditions if any as it may think fit to impose, direct that the provisions of this
Act shall not apply in relation to the wages payable to disabled employees.

(2) The appropriate Government may, if for special reasons it thinks so fit, by
notification in the Official Gazette, direct that 1*[subject to such conditions and] for
such period as it may specify the provisions of this Act or any of them shall not
apply to all or any class of employees employed in any scheduled employment or to
any locality where there is carried on a scheduled employment. 2*[(2A) The
appropriate Government may, if it is of opinion that, having regard to the terms
and conditions of service applicable to any class of employees in a scheduled
employment generally or in a scheduled employment in a local area 1*[or to any
establishment or a part of any establishment in a scheduled employment], it is not
necessary to fix minimum wages in respect of such employees of that class 1*[or in
respect of employees in such establishment or such part of any establishment] as are
in receipt of wages exceeding such limit as may be prescribed in this behalf, direct,
by notification in the Official Gazette and subject to such conditions, if any, as it
may --------------------------------------------------------------------- 1. Ins. by Act 30 of 1957,
s. 15. 2. Ins. by Act 26 of 1954, s. 5. 216B think fit to impose, that the provisions of
this Act or any of them shall not apply in relation to such employees.]
(3) Nothing in this Act shall apply to the wages payable by an employer to a member
of his family who is living with him and is dependent on him. Explanation.--In this
sub-section a member of the employer's family shall be deemed to include his or her
spouse or child or parent or brother or sister.

Power of State Government to add to Schedule. 27. Power of State Government to

add to Schedule.- The appropriate Government, after giving by notification in the
Official Gazette not less than three months' notice of its intention so to do, may, by
like notification, add to either Part of the Schedule any employment in respect of
which it is of opinion that minimum rates of wages should be fixed under this Act,
and thereupon the Schedule shall in its application to the State be deemed to be
amended accordingly.

Power of Central Government to give directions. 28. Power of Central Government

to give directions.- The Central Government may give directions to a State
Government as to the carrying into execution of this Act in the State.

Power of the Central Government to make rules. 29. Power of the Central
Government to make rules.- The Central Government may, subject to the condition
of previous publication, by notification in the Official Gazette, make rules1*
prescribing the term of office of the members, the procedure to be followed in the
conduct of business, the method of voting, the manner of filling up casual vacancies
in membership and the quorum necessary for the transaction of business of the
Central Advisory Board.

Power of appropriate Government to make rules.

30. Power of appropriate Government to make rules.- (1) The appropriate

Government may, subject to the condition of previous publication, by notification in
the Official Gazette, make rules for carrying out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may-- (a)
prescribe the term of office of the members, the procedure to be followed in the
conduct of business, the method of voting, the manner of filling up casual vacancies
in membership and the quorum necessary for the transaction of business of the
committees, sub- committees, 2*** and the Advisory Board;
--------------------------------------------------------------------- 1. For the Minimum Wages
(Central) Rules, 1950, see Gazette of India, 1950, Pt. II, Sec. 3, p. 781. 2. The words
"advisory committees, advisory sub-committees" omitted by Act 30 of 1957, s. 16.
216C (b) prescribe the method of summoning witnesses, production of documents
relevant to the subject-matter of the enquiry before the committees, sub-committees,
1*** and the Advisory Board; (c) prescribe the mode of computation of the cash
value of wages in kind and of concessions in respect of supplies of essential
commodities at concession rates; (d) prescribe the time and conditions of payment
of, and the deductions permissible from, wages; (e) provide for giving adequate
publicity to the minimum rates of wages fixed under this Act; (f) provide for a day
of rest in every period of seven days and for the payment of remuneration in respect
of such day; (g) prescribe the number of hours of work which shall constitute a
normal working day; (h) prescribe the cases and circumstances in which an
employee employed for a period of less than the requisite number of hours
constituting a normal working day shall not be entitled to receive wages for a full
normal working day; (i) prescribe the form of registers and records to be
maintained and the particulars to be entered in such registers and records; (j)
provide for the issue of wage books and wage slips and prescribe the manner of
making and authenticating entries in wage books and wage slips; (k) prescribe the
powers of Inspectors for purposes of this Act; (l) regulate the scale of costs that may
be allowed in proceedings under section 20; (m) prescribe the amount of court-fees
payable in respect of proceedings under section 20; and (n) provide for any other
matter which is to be or may be prescribed.
--------------------------------------------------------------------- 1. The words "advisory
committees, advisory sub-committees" omitted by Act 30 of 1957, s. 16. 216D 30A.
Rules made by Central Government to be laid before Parliament. 1*[30A. Rules
made by Central Government to be laid before Parliament.- Every rule made by the
Central Government under this Act shall be laid as soon as may be after it is made
before each House of Parliament while it is in session for a total period of thirty days
which may be comprised in one session or in two successive sessions, and if, before
the expiry of the session in which it is so laid or the session immediately following,
both Houses agree in making any modification in the rule or both Houses agree that
the rule should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be, so, however, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.]

Validation of fixation of certain minimum rates of wages. 2*[31. Validation of

fixation of certain minimum rates of wages.- Where during the period-- (a)
commencing on the 1st day of April, 1952, and ending with the date of the
commencement of the Minimum Wages (Amendment) Act, 1954 (26 of 1954); or (b)
commencing on the 31st day of December, 1954, and ending with the date of the
commencement of the Minimum Wages (Amendment) Act, 1957 (30 of 1957); or (c)
commencing on the 31st day of December, 1959, and ending with the date of the
commencement of the Minimum Wages (Amendment) Act, 1961 (31 of 1961),
minimum rates of wages have been fixed by an appropriate Government as being
payable to employees employed in any employment specified in the Schedule in the
belief or purported belief that such rates were being

fixed under clause (a) of sub-section (1) of section 3, as in force immediately before
the commencement of the Minimum Wages (Amendment) Act, 1954 (26 of 1954), or
the Minimum Wages (Amendment) Act, 1957, (30 of 1957) or the Minimum Wages
(Amendment) Act, 1961, (31 of 1961) as the case may be, such rates shall be deemed
to have been fixed in accordance with law and shall not be called in question in any
court on the ground merely that the relevant date specified for the purpose in that
clause had expired at the time the rates were fixed: Provided that nothing contained
in this section shall extend, or be construed to extend, to affect any person with any
punishment or penalty whatsoever by reason of the payment by him by way of
wages to any of his employees during any period specified in this section of an
amount which is less than the minimum rates of wages referred to in this section or
by reason of non-compliance during the period aforesaid with any order or rule
issued under section 13.] --------------------------------------------------------------------- 1.
Ins. by Act 31 of 1961, s. 3. 2. Subs. by s. 4, ibid., for s. 31. 216E

THE PAYMENT OF WAGES ACT, 1936

Year : 1936

Act :

THE PAYMENT OF WAGES ACT, 1936.ACT NO. 4 OF 1936 1*

[23rd April, 1936.]

An Act to regulate the payment of wages to certain classes of

2*[employed persons].

WHEREAS it is expedient to regulate the payment of wages to certain classes of

2*[employed persons];

It is hereby enacted as follows:--

1.Short title, extent, commencement and application.

1. Short title, extent, commencement and application.-(1) This

Act may be called the Payment of Wages Act, 1936.3*[(2) It extends to the whole of
India 4***.]

(3) It shall come into force on such date 5*** as the Central
Government may, by notification in the Official Gazette, appoint.

(4) It applies in the first instance to the payment of wages to persons employed in any
6*[factory, to persons] employed (otherwise than in a factory) upon any railway by a
railway administration or, either directly or through a sub-contractor, by a person
fulfilling a contract with a railway administration. 7*[and to persons employed in an
industrial or other establishment specified in sub-clauses (a) to
(g) of clause (ii) of section 2]

(5) The State Government may, after giving three months notice of its intention of so
doing, by notification in the Official Gazette, extend the provisions of 8*[this Act] or any
of them to the payment of wages to any class of persons employed in 6*[any
establishment or class of establishments specified by the Central Government or a State
Government under sub-clause (h) of clause (ii) of section 2]

6*[Provided that in relation to any such establishment owned by the Central Government,
no such notification shall be issued except with the concurrence of that Government.]
---------------------------------------------------------------------
1. For Statement of Objects and Reasons, see Gazette of India, 1935, Pt. V. p. 20; for
Report of Select Committee, see ibid., p. 77.The Act has been extended to the whole of
Madhya Pradesh by M.P.
Act 23 of 1958; to Goa, Daman and Diu by Reg. 12 of 1962, s. 3 and
Sch.; to Dadra and Nagar Haveli (w.e.f. 1-7-1965) by Reg. 6 of 1963, s. 2 and Sch. I; to
Pondicherry (w.e.f. 1-10-1963) by Reg. 7 of 1963, s. 3 and Sch, I and to Laccadive,
Minicoy and Amindivi Islands by Reg.

Amended in Jammu and Kashmir by J and K Act 6 of 1974.Amended in Madhya Pradesh by

M.P. Act 33 of 1976.Amended in Tamil Nadu by T.N. Acts (47 of 1974 and 36 of 1972).
Amended in West Bengal by W.B. Acts (38 of 1974 and 26 of 1975).
Amended in Andhra Pradesh by A.P. Act 21 of 1968.Amended in Kerala by Kerala Acts 34
of 1969 and 11 of 1977.Amended in Assam by Assam Act 1 of 1970.
Amended in Rajasthan by Raj. Act 13 of 1970.
Amended in Pondichery by Pondichery Act 10 of 1970. 8 of 1965, s. 3.and Sch.

2. Subs. by Act 38 of 1982, s. 2 (w.e.f. 15-10-1982).

3. Subs. by the A. O. 1950, for sub-section (2).
4. The words "except the State of Jammu and Kashmir" omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).
5. 28th March, 1937, see Gazette of India, 1937, Pt. I, p. 626.6. Subs. by Act 38 of 1982,
s. 3 (w. e. f. 15-10-82).
7. Ins. by s. 3 ibid. (w.e.f. 15-10-1982).
8. Subs. by Act 68 of 1957, s. 2. for "the Act" (w.e.f. 1-4-1958).

96.(6) Nothing in this Act shall apply to wages payable in respect of a wage-period which,
over such wage-period, average 1*[2* one thousand six hundred rupees] a month or
more.

2.Definitions.

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,--

3*[(i) "employed person" includes the legal representative of a deceased employed

person;

(ia) "employer" includes the legal representative of a deceased employer;

(ib) "factory" means a factory as defined in clause (m) of section 2 of the Factories Act,
1948 (63 of 1948), and includes any place to which the provisions of that Act have been
applied under sub-section (1) of section 85.thereof;]

(ii) 4*["industrial or other establishment" means]--

5*[(a) tramway service, or motor transport service engaged in carrying passengers or

goods or both by road for hire or reward;

(aa) air transport service other than such service belonging to, or exclusively employed in
the military, naval or air forces of the Union or the Civil Aviation
Department of the Government of India;]

(b) dock, wharf or jetty;

6*[(c) inland vessel, mechanically propelled;]

(d) mine, quarry or oilfield;

(e) plantation;

(f) workshop or other establishment in which articles are produced, adapted or

manufactured, with a view to their use, transport or sale;

7*[(g) establishment in which any work relating to the construction, development or

maintenance of buildings, roads, bridges or canals, or relating to operations connected
with navigation, irrigation or the supply of water, or relating to the generation,
transmission and distribution of electricity or any other form of power is being carried
on;]

8*[(h) any other establishment or class of establishments which the Central Government
or a State
Government may, having regard to the nature thereof, the need for protection of persons
employed therein and other relevant circumstances, specify, by notification in the Official
Gazette.]
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 3 (w.e.f. 15-10-1982)
2. Subs. by Act 53 of 1964, s. 3, for cl. (i) (w.e.f. 1-2-1965).
3. Subs. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).
4. Subs. by s. 3, ibid., for sub-clause (a) (w.e.f. 1-2-1965).
5. Subs. by Act 68 of 1957, s. 3, for sub-clause (c) (w.e.f. 1-4-
1958).
6. Ins. by s. 3, ibid. (w.e.f. 1-4-1958).
7. Ins. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).

97.1*[(iia) "mine" has the meaning assigned to it in clause (j)

of sub-section (1) of section 2 of the Mines Act,
1952 (35 of 1952);]

2*[(iii) "plantation" has the meaning assigned to it in clause (f) of section 2 of the
Plantations Labour
Act, 1951 (69 of 1951);]

(iv) "prescribed" means prescribed by rules made under this

Act;

(v) "railway administration" has the meaning assigned to it in clause (6) of section 3 of
the Indian Railways Act,
1890 (9 of 1890); and

3*[(vi) "wages" means all remuneration (whether by way of salary, allowances or

otherwise) expressed in terms of money or capable of being so expressed which would, if
the terms of employment, express or implied, were fulfilled, be payable to a person
employed in respect of his employment or of work done in such employment, and
includes--

(a) any remuneration payable under any award or settlement between the parties or
order of a
Court;

(b) any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period;

(c) any additional remuneration payable under the terms of employment (whether called
a bonus or by any other name)

(d) any sum which by reason of the termination of employment of the person employed is
payable under any law, contract or instrument which provides for the payment of such
sum, whether with or without deductions, but does not provide for the time within which
the payment is to be made;

(e) any sum to which the person employed is entitled under any scheme framed under
any law for the time being in force;

but does not include--

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not
form part of the remuneration payable under the terms of employment or which is not
payable under any award or settlement between the parties or order of a Court;
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).
2. Subs. by s. 3, ibid., for cl. (iii) (w.e.f. 1-2-1965).
3. Subs. by Act 68 of 1957, s. 3, for cl. (vi) (w.e.f. 1-4-1958).

98.(2) the value of any house-accommodation, or of the supply of light, water, medical
attendance or other amenity or of any service excluded from the computation of wages by
a general or special order of the State Government;

(3) any contribution paid by the employer to any pension or provident fund, and the
interest which may have accrued thereon;

(4) any travelling allowance or the value of any travelling concession;

(5) any sum paid to the employed person to defray special expenses entailed on him by
the nature of his employment; or

(6) any gratuity payable on the termination of employment in cases other than those
specified in sub-clause (d).]
3.Responsibility for payment of wages.

3. Responsibility for payment of wages.- Every employer shall be responsible for the
payment to persons employed by him of all wages required to be paid under this Act:

Provided that, in the case of persons employed (otherwise than by a contractor)--

(a) in factories, if a person has been named as the manager of the factory under
1*[clause (f) of sub-section (1)
of section 7 of the Factories Act, 1948 (63 of 1948)],

2*[(b) in industrial or other establishments, if there is a person responsible to the

employer for the supervision and control of the industrial or other establishments;]

(c) upon railways (otherwise than in factories), if the employer is the railway
administration and the railway administration has nominated a person in this behalf for
the local area concerned;

the person so named, the person so responsible to the employer, or the person so
nominated, as the case may be, 2*[shall also be responsible]
for such payment.

4.Fixation of wage-periods.

4. Fixation of wage-periods.- (1) Every person responsible for the payment of wages
under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of
which such wages shall be payable.

(2) No wage-period shall exceed one month.

---------------------------------------------------------------------
1. Subs. by Act 68 of 1957, s. 4, for "clause (e) of sub-section (1)
of section 9 of the Factories Act, 1934" (w.e.f. 1-4-1958).
2. Subs. by Act 38 of 1982, s. 5 (w.e.f. 15-10-1982).
3. Subs. by Act 53 of 1964, s. 4, for "shall be responsible" (w.e.f.
1-2-1965).

99.5.Time of payment of wages.

5. Time of payment of wages.- (1) The wages of every person employed upon or in--

(a) any railway, factory or 1*[industrial or other establishment] upon or in which less
than one thousand persons are employed, shall be paid before the expiry of the seventh
day,

(b) any other railway, factory or 1*[industrial or other establishment], shall be paid
before the expiry of the tenth day,

after the last day of the wage-period in respect of which the wages are payable:

2*[Provided that in the case of persons employed on a dock, wharf or jetty or in a mine,
the balance of wages found due on completion of the final tonnage account of the ship or
wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the
seventh day from the day of such completion.]

(2) Where the employment of any person is terminated by or on behalf of the employer,
the wages earned by him shall be paid before the expiry of the second working day from
the day on which his employment is terminated:

2*[Provided that where the employment of any person in an establishment is terminated

due to the closure of the establishment for any reason other than a weekly or other
recognised holiday, the wages earned by him shall be paid before the expiry of the
second day from the day on which his employment is so terminated.]

(3) The State Government may, by general or special order, exempt, to such extent and
subject to such conditions as may be specified in the order, the person responsible for the
payment of wages to persons employed upon any railway (otherwise than in a factory)
3*[or to persons employed as daily-rated workers in the
Public Works Department of the Central Government or the State
Government] from the operation of this section in respect of the wages of any such
persons or class of such persons:

3*[Provided that in the case of persons employed as daily-rated workers as aforesaid, no

such order shall be made except in consultation with the Central Government.]

(4) 4*[Save as otherwise provided in sub-section (2), all payments] of wages shall be
made on a working day.

6.Wages to be paid in current coin or currency notes.

6. Wages to be paid in current coin or currency notes.- All wages shall be paid in current
coin or currency notes or in both:

5*[Provided that the employer may, after obtaining the written authorisation of the
employed person, pay him the wages either by cheque or by crediting the wages in his
bank account.]
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 6 (w.e.f. 15-10-1982).
2. Added by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
3. Ins. by s. 5, ibid. (w.e.f. 1-2-1965).
4. Subs. by s. 5, ibid., for "All payments" (w.e.f. 1-2-1965).
5. Ins. by Act 29 of 1976, s. 3 (w.e.f. 12-11-1975).

100

7.Deductions which may be made from wages.

7. Deductions which may be made from wages.-(1) Notwithstanding the provisions of

sub-section (2) of section 47 of the Indian Railways
Act, 1890 (9 of 1890), the wages of an employed person shall be paid to him without
deductions of any kind except those authorised by or under this Act.

1*[Explanation I].--Every payment made by the employed person to the employer or his
agent shall, for the purposes of this Act, be deemed to be a deduction from wages.

2*[Explanation II].--Any loss of wages resulting from the imposition, for good and
sufficient cause, upon a person employed of any of the following penalties, namely:--

(i) the withholding of increment or promotion (including the stoppage of increment at an

efficiency bar)

(ii) the reduction to a lower post or time scale or to a lower stage in a time scale; or

(iii) suspension;

shall not be deemed to be a deduction from wages in any case where the rules framed by
the employer for the imposition of any such penalty are in conformity with the
requirements, if any, which may be specified in this behalf by the State Government by
notification in the Official Gazette.]

(2) Deductions from the wages of an employed person shall be made only in accordance
with the provisions of this Act, and may be of the following kinds only, namely:--

(a) fines;

(b) deductions for absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the employed person
for custody, or for loss of money for which he is required to account, where such damage
or loss is directly attributable to his neglect or default;
3*[(d) deductions for house-accommodation supplied by the employer or by Government
or any housing board set up under any law for the time being in force (whether the
Government or the board is the employer or not) or any other authority engaged in the
business of subsidising house-accommodation which may be specified in this behalf by
the State Government by notification in the
Official Gazette;]
---------------------------------------------------------------------
1. Explanation re-numbered as Explanation I by Act 68 of 1957, s. 5.(w.e.f. 1-4-1958).
2. Ins. by s. 5, ibid. (w.e.f. 1-4-1958).
3. Subs. by s. 5, ibid., for cl. (d) (w.e.f. 1-4-1958).

101.(e) deductions for such amenities and services supplied by the employer as the 1***
State Government 2*[or any officer specified by it in this behalf] may, by general or
special order, authorise.

Explanation.--The word "services" in 3*[this clause] does not include the supply of tools
and raw materials required for the purposes of employment;

4*[(f) deductions for recovery of advances of whatever nature (including advances for
travelling allowance or conveyance allowance), and the interest due in respect thereof, or
for adjustment of over-payments of wages;

(ff) deductions for recovery of loans made from any fund constituted for the welfare of
labour in accordance with the rules approved by the State Government, and the interest
due in respect thereof;

(fff) deductions for recovery of loans granted for house-

building or other purposes approved by the State
Government, and the interest due in respect thereof;]

(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a Court or other authority competent to

make such order;

(i) deductions for subscriptions to, and for repayment of advances from any provident
fund to which the
Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as
defined in section 58A of the Indian Income-tax Act, 1922 (11 of 1922), or any provident
fund approved in this behalf by the State
Government, during the continuance of such approval;
5***

(j) deductions for payments to co-operative societies approved by the State Government
2*[or any officer specified by it in this behalf] or to a scheme of insurance maintained by
the Indian Post Office; 6*[and]
---------------------------------------------------------------------
1. The words "Governor-General in Council or" omitted by the A. O.
1937.2. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
3. Subs. by Act 56 of 1974, s. 3 and Second Schedule, for "this sub-
clause".
4. Subs. by Act 53 of 1964, s. 6, for cl. (f) (w.e.f. 1-2-1965).
5. The word "and" omitted by Ordinance 3 of 1940, s. 2.6. Ins. by s. 2, ibid.

102.1*[2*[(k) deductions, made with the written authorisation of the person employed
for payment of any premium on his life insurance policy to the Life Insurance
Corporation of India established under the Life
Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the
Government of India or of any State Government or for being deposited in any Post Office
Savings Bank in furtherance of any savings scheme of any such
Government.]]

3*[(kk) deductions made, with the written authorisation of the employed person, for the
payment of his contribution to any fund constituted by the employer or a trade union
registered under the
Trade Unions Act, 1926 for the welfare of the employed persons or the members of their
families, or both, and approved by the State
Government or any officer specified by it in this behalf, during the continuance of such
approval;

(kkk) deductions made, with the written authorisation of the employed person, for
payment of the fees payable by him for the membership of any trade union registered
under the Trade Unions Act,
1926;]

4*[(l) deductions for payment of insurance premia on

Fidelity Guarantee Bonds;
(m) deductions for recovery of losses sustained by a railway administration on account of
acceptance by the employed person of counterfeit or base coins or mutilated or forged
currency notes;

(n) deductions for recovery of losses sustained by a railway administration on account of

the failure of the employed person to invoice, to bill, to collect or to account for the
appropriate charges due to that administration; whether in respect of fares, freight,
demurrage, wharfage and cranage or in respect of sale of food in catering establishments
or in respect of sale of commodities in grain shops or otherwise;

(o) deductions for recovery of losses sustained by a railway administration on account of

any rebates or refunds incorrectly granted by the employed person where such loss is
directly attributable to his neglect or default;]

5*[(p) deductions, made with the written authorisation of the employed person, for
contribution to the Prime
Ministers National Relief Fund or to such other Fund as the Central Government may, by
notification in the
Official Gazette, specify;]

6*[(q) deductions for contributions to any insurance scheme framed by the Central
Government for the benefit of its employees.]
4*[(3) Notwithstanding anything contained in this Act, the total amount of deductions
which may be made under sub-section (2) in any wage period from the wages of any
employed person shall not exceed--

(i) in cases where such deductions are wholly or partly made for payments to co-
operative societies under clause (j)
of sub-section (2), seventy-five per cent. of such wages, and
---------------------------------------------------------------------
1. Ins. by Ordinance 3 of 1940, s. 2.2. Subs. by Act 68 of 1957, s. 5, for cl. (k) (w.e.f. 1-4-
1958).
3. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).
4. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
5. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).
6. Added by Act 19 of 1977, s. 2.103.(ii) in any other case, fifty per cent. of such wages:

Provided that where the total deductions authorised under sub-

section (2) exceed seventy-five per cent, or, as the case may be, fifty per cent. of the
wages, the excess may be recovered in such manner as may be prescribed.

(4) Nothing contained in this section shall be construed as precluding the employer from
recovering from the wages of the employed person or otherwise any amount payable by
such person under any law for the time being in force other than the Indian Railways Act,
1890
(9 of 1890).]

8.Fines.

8. Fines. (1) No fine shall be imposed on any employed person save in respect of such
acts and omissions on his part as the employer, with the previous approval of the State
Government or of the prescribed authority, may have specified by notice under sub-
section
(2).

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed
manner on the premises in which the employment is carried on or in the case of person
employed upon a railway (otherwise than in a factory), at the prescribed place or places.

(3) No fine shall be imposed on any employed person until he has been given an
opportunity of showing cause against the fine, or otherwise than in accordance with such
procedure as may be prescribed for the imposition of fines.
(4) The total amount of fine which may be imposed in any one wage-period on any
employed person shall not exceed an amount equal to
1*[three per cent.] of the wages payable to him in respect of that wage-period.

(5) No fine shall be imposed on any employed person who is under the age of fifteen
years.

(6) No fine imposed on any employed person shall be recovered from him by instalments
or after the expiry of sixty days from the day on which it was imposed.

(7) Every fine shall be deemed to have been imposed on the day of the act or omission in
respect of which it was imposed.

(8) All fines and all realisations thereof shall be recorded in a register to be kept by the
person responsible for the payment of wages under section 3 in such form as may be
prescribed; and all such realisations shall be applied only to such purposes beneficial to
the persons employed in the factory or establishment as are approved by the prescribed
authority.

Explanation.--When the persons employed upon or in any railway, factory or 1*[industrial

or other establishement] are part only of a staff employed
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 8 (w.e.f. 15-10-1982).

104-104B

under the same management, all such realisations may be credited to a common fund
maintained for the staff as a whole, provided that the fund shall be applied only to such
purposes as are approved by the prescribed authority.

9.Deductions for absence from duty.

9. Deductions for absence from duty.-(1) Deductions may be made under clause (b) of
sub-section (2) of section 7 only on account of the absence of an employed person from
the place or places where, by the terms of his employment, he is required to work, such
absence being for the whole or any part of the period during which he is so required to
work.

(2) The amount of such deduction shall in no case bear to the wages payable to the
employed person in respect of the wage-period for which the deduction is made a larger
proportion than the period for which he was absent bears to the total period, within such
wage-
period, during which by the terms of his employment, he was required to work:

Provided that, subject to any rules made in this behalf by the

State Government, if ten or more employed persons acting in concert absent themselves
without due notice (that is to say without giving the notice which is required under the
terms of their contracts of employment) and without reasonable cause, such deduction
from any such person may include such amount not exceeding his wages for eight days as
may be any such terms be due to the employer in lieu of due notice.

1*[Explanation.--For the purposes of this section, an employed person shall be deemed to

be absent from the place where he is required to work if, although present in such place,
he refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable
in the circumstances, to carry out his work.]

10.Deductions for damage or loss.

10. Deductions for damage or loss.- 2*[(1) A deduction under clause (c) or clause (o) of
sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to
the employer by the neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m)
or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has
been given an opportunity of showing cause against the deduction, or otherwise than in
accordance with such procedure as may be prescribed for the making of such
deductions.]
---------------------------------------------------------------------
1. Added by Act 22 of 1937, s. 2.2. Subs. by Act 53 of 1964, s. 7, for sub-section (1)
(w.e.f. 1-2-
1965).

105.(2) All such deductions and all realisations thereof shall be recorded in a register to
be kept by the person responsible for the payment of wages under section 3 in such form
as may be prescribed.

11.Deductions for services rendered.

11. Deductions for services rendered.- A deduction under clause

(d) or clause (e) of sub-section (2) of section 7 shall not be made from the wages of an
employed person, unless the house-accommodation amenity or service has been accepted
by him, as a term of employment or otherwise, and such deduction shall not exceed an
amount equivalent to the value of the house-accommodation amenity or service supplied
and, in the case of a deduction under the said clause (e), shall be subject to such
conditions as 1*** the State Government may impose.

12.Deductions for recovery of advances.

12. Deductions for recovery of advances.- Deductions under clause

(f) of sub-section (2) of section 7 shall be subject to the following conditions, namely:--
(a) recovery of an advance of money given before employment began shall be made from
the first payment of wages in respect of a complete wage-period, but no recovery shall be
made of such advances given for travelling-
expenses;

2*[(aa) recovery of an advance of money given after employment began shall be subject
to such conditions as the State Government may impose;]

(b) recovery of advances of wages not already earned shall be subject to any rules made
by the State Government regulating the extent to which such advances may be given and
the instalments by which they may be recovered.
12A.

Deductions for recovery of loans.

3*[12A. Deductions for recovery of loans.- Deductions for recovery of loans granted
under clause (fff) of sub-section (2) of section 7.shall be subject to any rules made by the
State Government regulating the extent to which such loans may be granted and the rate
of interest payable thereon.]
13.Deductions for payments to co-operative societies and insuranceschemes.

13. Deductions for payments to co-operative societies and insurance schemes.-

Deductions under clause (j) 4*[and clause (k)] of sub-section (2) of section 7 shall be
subject to such conditions as the State Government may impose.

13A.
Maintenance of registers and records.

5*[13A. Maintenance of registers and records.-(1) Every employer shall maintain such
registers and records giving such particulars of persons employed by him, the work
---------------------------------------------------------------------
1. The words "the Governor-General in Council or" omitted by the
A. O. 1937.2. Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965).
3. Ins. by s. 9, ibid. (w.e.f. 1-2-1965).
4. Ins. by Ordinance 3 of 1940, s. 3.5. Ins. by Act 53 of 1964, s. 10 (w.e.f. 1-2-1965).
106.performed by them, the wages paid to them, the deductions made from their wages,
the receipts given by them and such other particulars and in such form as may be
prescribed.

(2) Every register and record required to be maintained under this section shall, for the
purposes of this Act, be preserved for a period of three years after the date of the last
entry made therein.]

14.Inspectors.
14. Inspectors.- (1) An Inspector of Factories appointed under
1*[sub-section (1) of section 8 of the Factories Act, 1948 (63 of
1948)], shall be an Inspector for the purposes of this Act in respect of all factories within
the local limits assigned to him.

(2) The State Government may appoint Inspectors for the purposes of this Act in respect
of all persons employed upon a railway
(otherwise than in a factory) to whom this Act applies.
(3) The State Government may, by notification in the Official
Gazette, appoint such other persons as it thinks fit to be Inspectors for the purposes of
this Act, and may define the local limits within which and the class of factories and
2*[industrial or other establishments] in respect of which they shall exercise their
functions.

3*[(4) An Inspector may,--

(a) make such examination and inquiry as he thinks fit in order to ascertain whether the
provisions of this
Act or rules made thereunder are being observed;
(b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises
of any railway, factory or 2*[industrial or other establishment] at any reasonable time for
the purpose of carrying out the objects of this Act;

(c) supervise the payment of wages to persons employed upon any railway or in any
factory or
2*[industrial or other establishment];

(d) require by a written order the production at such place, as may be prescribed, of any
register or record maintained in pursuance of this Act and take on the spot or otherwise
statements of any persons which he may consider necessary for carrying out the
purposes of this Act;

(e) seize or take copies of such registers or documents or portions thereof as he may
consider relevant in respect of an offence under this Act which he has reason to believe
has been committed by an employer;

(f) exercise such other powers as may be prescribed:

---------------------------------------------------------------------
1. Subs. by Act 68 of 1957, s. 6, for "sub-section (1) of section 10.of the Factories Act,
1934" (w.e.f. 1-4-1958).
2. Subs. by Act 38 of 1982, s. 9 (w.e.f. 15-10-1982).
3. Subs. by Act 53 of 1964, s. 11, for sub-section (4) (w.e.f. 1-2-
1965).

107.Provided that no person shall be compelled under this sub-section to answer any
question or make any statement tending to incriminate himself.

(4A) The provisions of the 1*[code of Criminal Procedure, 1973.(2 of 1974)] shall, so far
as may be, apply to any search or seizure under this sub-section as the apply to any
search or seizure made under the authority of a warrant issued under 1*[section 94] of
the said Code.]
(5) Every Inspector shall be deemed to be a public servant within the meaning of the
Indian Penal Code (45 of 1860).

14A.

Facilities to be afforded to Inspectors.

2*[14A. Facilities to be afforded to Inspectors.- Every employer shall afford an Inspector

all reasonable facilities for making any entry, inspection, supervision, examination or
inquiry under this
Act.]

15.Claims arising out of deductions from wages or delay in payment ofwages and penalty
for malicious or vexatious claims.

15. Claims arising out of deductions from wages or delay in payment of wages and
penalty for malicious or vexatious claims.- (1)
The State Government may, by notification in the Official Gazette, appoint 3*[a presiding
officer of any Labour Court or Industrial
Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of
1947) or under any corresponding law relating to the investigation and settlement of
industrial disputes in force in the State or] any
Commissioner for Workmens Compensation or other officer with experience as a Judge of
a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any
specified area all claims arising out of deductions from the wages, or delay in payment of
the wages, 4*[of persons employed or paid in that area, including all matters incidental
to such claims:
Provided that where the State Government considers it necessary so to do, it may appoint
more than one authority for any specified area and may, by general or special order,
provide for the distribution or allocation of work to be performed by them under this
Act].

(2) Where contrary to the provisions of this Act any deduction has been made from the
wages of an employed person, or any payment of wages has been delayed, such person
himself, or any legal practitioner or any official of a registered trade union authorised in
writing to act on his behalf, or any Inspector under this Act, or any other person acting
with the permission of the authority appointed under sub-section (1), may apply to such
authority for a direction under sub-section (3):
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 9 (w.e.f. 15-10-1982).
2. Ins. by Act 53 of 1964, s. 12 (w.e.f. 1-2-1965).
3. Ins. by s. 13, ibid. (w.e.f. 1-2-1965).
4. Subs. by s. 13, ibid., for "of persons employed or paid in that area" (w.e.f. 1-2-1965).

108.Provided that every such application shall be presented within

1*[twelve months] from the date on which the deduction from the wages was made or
from the date on which the payment of the wages was due to be made, as the case may
be:
Provided further that any application may be admitted after the said period of 1*[twelve
months] when the applicant satisfies the authority that he had sufficient cause for not
making the application within such period.

(3) When any application under sub-section (2) is entertained, the authority shall hear
the applicant and the employer or other person responsible for the payment of wages
under section 3, or give them an opportunity of being heard, and, after such further
inquiry
(if any) as may be necessary, may, without prejudice to any other penalty to which such
employer or other person is liable under this
Act, direct the refund to the employed person of the amount deducted, or the payment of
the delayed wages, together with the payment of such compensation as the authority
may think fit, not exceeding ten times the amount deducted in the former case and
2*[not exceeding twenty-
five rupees in the latter, and even if the amount deducted or the delayed wages are paid
before the disposal of the application, direct the payment of such compensation, as the
authority may think fit, not exceeding twenty-five rupees]:

Provided that no direction for the payment of compensation shall be made in the case of
delayed wages if the authority is satisfied that the delay was due to--

(a) a bona fide error or bona fide dispute as to the amount payable to the employed
person, or

(b) the occurrence of an emergency, or the existence of exceptional circumstances, such

that the person responsible for the payment of the wages was unable, though exercising
reasonable diligence, to make prompt payment, or

(c) the failure of the employed person to apply for or accept payment.

3*[(4) If the authority hearing an application under this section is satisfied--

(a) that the application was either malicious or vexatious, the authority may direct that a
penalty not exceeding fifty
---------------------------------------------------------------------
1. Subs. by Act 53 of 1964, s. 13, for "six months" (w.e.f. 1-2-
1965).
2. Subs. by s. 13, ibid., for "not exceeding ten rupees in the latter" (w.e.f. 1-2-1965).
3. Subs. by s. 13, ibid., for sub-section (4) (w.e.f. 1-2-1965).

108A

rupees be paid to the employer or other person responsible for the payment of wages by
the person presenting the application; or
(b) that in any case in which compensation is directed to be paid under sub-section (3),
the applicant ought not to have been compelled to seek redress under this section, the
authority may direct that a penalty not exceeding fifty rupees be paid to the State
Government by the employer or other person responsible for the payment of wages.

(4A) Where there is any dispute as to the person or persons being the legal
representative or representatives of the employer or of the employed person, the decision
of the authority on such dispute shall be final.

(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the
meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860).]

(5) Any amount directed to be paid under this section may be recovered--

(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by him as
Magistrate, and

(b) if the authority is not a Magistrate, by any Magistrate to whom the authority makes
application in this behalf, as if it were a fine imposed by such Magistrate.
16.Single application in respect of claims from unpaid group.

16. Single application in respect of claims from unpaid group.-

(1) Employed persons are said to belong to the same unpaid group if they are borne on
the same establishment and if 1*[deductions have been made from their wages in
contravention of this Act for the same cause and during the same wage-period or periods
or if] their wages for the same wage-period or periods have remained unpaid after the
day fixed by section 5.(2) A single application may be presented under section 15 on
behalf or in respect of any number of employed persons belonging to the same unpaid
group, and in such case 2*[every person on whose behalf such application is presented
may be awarded maximum compensation to the extent specified in sub-section (3) of
section
15].

(3) The authority may deal with any number of separate pending applications, presented
under section 15 in respect of persons belonging to the same unpaid group, as a single
application presented under
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 14 (w.e.f. 1-2-1965).
2. Subs. by s. 14, ibid., for certain words, brackets and figures
(w.e.f. 1-2-1965).
108B

sub-section (2) of this section, and the provisions of that sub-

section shall apply accordingly.

17.Appeal.

17. Appeal.- (1) 1*[An appeal against an order dismissing either wholly or in part an
application made under sub-section (2) of section
15, or against a direction made under sub-section (3) or sub-section
(4) of that section] may be preferred, within thirty days of the date on which 2*[the
order or direction] was made, in a Presidency-town
3*** before the Court of Small Causes and elsewhere before the
District Court--

(a) by the employer or other person responsible for the payment of wages under section
3, if the total sum directed to be paid by way of wages and compensation exceeds three
hundred rupees 4*[or such direction has the effect of imposing on the employer or the
other person a financial liability exceeding one thousand rupees], or
5*[(b) by an employed person on any legal practitioner or any official of a registered
trade union authorised in writing to act on his behalf or any Inspector under this Act, or
any other person permitted by the authority to make an application under sub-section (2)
of section 15, if the total amount of wages claimed to have been withheld from the
employed person exceeds twenty rupees or from the unpaid group to which the employed
person belongs or belonged exceeds fifty rupees, or]

(c) by any person directed to pay a penalty under 6*[sub-

section (4)] of section 15.4*[(1A) No appeal under clause (a) of sub-section (1) shall lie
unless the memorandum of appeal is accompanied by a certificate by the authority to the
effect that the appellant has deposited the amount payable under the direction appealed
against.]

7*[(2) Save as provided in sub-section (1), any order dismissing either wholly or in part
an application made under sub-section (2) of section 15, or a direction made under sub-
section (3) or sub-section
(4) of that section shall be final.]
---------------------------------------------------------------------
1. Subs. by Act 68 of 1957, s. 7, for certain words (w.e.f. 1-4-
1958).
2. Subs. by s. 7, ibid., for "the direction" (w.e.f. 1-4-1958).
3. The words "or in Rangoon" omitted by the A. O. 1937.4. Ins. by Act 53 of 1964, s. 15
(w.e.f. 1-2-1965).
5. Subs. by s. 15, ibid., for cl. (b) (w.e.f. 1-2-1965).
6. Subs. by Act 20 of 1937, s. 2 and Sch. I, for "sub-section (5)".
7. Subs. by Act 68 of 1957, s. 7, for sub-section (2) (w.e.f. 1-4-
1958).

108C

1*[(3) Where an employer prefers an appeal under this section, the authority against
whose decision the appeal has been preferred may, and if so directed by the court
referred to in sub-section (1)
shall, pending the decision of the appeal, withhold payment of any sum in deposit with it.

(4) The court referred to in sub-section (1) may, if it thinks fit, submit any question of
law for the decision of the High Court and, if it so does, shall decide the question in
conformity with such decision.]

17A.

Conditional attachment of property of employer or other personresponsible for payment

of wages.

2*[17A. Conditional attachment of property of employer or other persons responsible for

payment of wages.- (1) Where at any time after an application has been made under sub-
section (2) of section 15 the authority, or where at any time after an appeal has been
filed under section 17 by an employed person or 3*[any legal practitioner or any official
of a registered trade union authorised in writing to act on his behalf or any Inspector
under this Act or any other person permitted by the authority to make an application
under sub-section
(2) of section 15] the Court referred to in that section, is satisfied that the employer or
other person responsible for the payment of wages under section 3 is likely to evade
payment of any amount that may be directed to be paid under section 15 or section 17,
the authority or the Court, as the case may be, except in cases where the authority or
Court is of opinion that the ends of justice would be defeated by the delay, after giving
the employer or other person an opportunity of being heard, may direct the attachment of
so much of the property of the employer or other person responsible for the payment of
wages as is, in the opinion of the authority or Court, sufficient to satisfy the amount
which may be payable under the direction.

(2) The provisions of the Code of Civil Procedure, 1908, (5 of

1908) relating to attachment before judgment under that Code shall, so far as may be,
apply to any order for attachment under sub-section
(1).]

18.Powers of authorities appointed under section 15.18. Powers of authorities appointed

under section 15.- Every authority appointed under sub-section (1) of section 15 shall
have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5.of 1908),
for the purpose of taking evidence and of enforcing the attendance of witnesses and
compelling the production of documents, and every such authority shall be deemed to be
a Civil Court for all the purposes of section 195 and of 4*[Chapter XXVI of the Code of
Criminal Procedure, 1973 (2 of 1974).]
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).
2. Ins. by Act 68 of 1957, s. 8 (w.e.f. 1-4-1958).
3. Subs. by Act 53 of 1964, s. 16, for certain words (w.e.f. 1-2-
1965).
4. Subs. by Act 38 of 1982, s. 10 (w.e.f. 15.10.1982).

108D

19.[Repealed.]
19. [Power to recover from employer in certain cases.]- Rep. by the Payment of Wages
(Amendment) Act, 1964 (53 of 1964), s. 17 (w.e.f.
1-2-1965).

20.Penalty for offences under the Act.

20. Penalty for offences under the Act.- (1) Whoever being responsible for the payment of
wages to an employed person contravenes any of the provisions of any of the following
sections, namely,
1*[section 5 except sub-section (4) thereof, section 7, section 8.except sub-section (8)
thereof, section 9, section 10 except sub-
section (2) thereof, and sections 11 to 13], both inclusive, shall be punishable with fine
2*[which shall not be less than two hundred rupees but which may extend to one
thousand rupees].

(2) Whoever contravenes the provisions of section 4, 3*[sub-

section (4) of section 5, section 6, sub-section (8) of section 8, sub-section (2) of section
10] or section 25 shall be punishable with fine which may extend to 2*[five hundred
rupees].

4*[(3) Whoever being required under this Act to maintain any records or registers or to
furnish any information or return--

(a) fails to maintain such register or record; or

(b) wilfully refuses or without lawful excuse neglects to furnish such information or
return; or

(c) wilfully furnishes or causes to be furnished any information or return which he knows
to be false; or

(d) refuses to answer or wilfully gives a false answer to any question necessary for
obtaining any information required to be furnished under this Act;

shall, for each such offence, be punishable with fine 2*[which shall not be less than two
hundred rupees but which may extend to one thousand rupees].

(4) Whoever--

(a) wilfully obstructs an Inspector in the discharge of his duties under this Act; or
(b) refuses or wilfully neglects to afford an Inspector any reasonable facility for making
any entry, inspection, examination, supervision, or inquiry authorised by or under this Act
in relation to any railway, factory or
2*[industrial or other establishment]; or

(c) wilfully refuses to produce on the demand of an

Inspector any register or other document kept in pursuance of this Act; or
---------------------------------------------------------------------
1. Subs. by Act 53 of 1964, s. 18, for "section 5 and sections 7 to
13" (w.e.f. 1-2-1965).
2. Subs. by Act 38 of 1982, s. 11 (w.e.f. 15-10-1982).
3. Subs. by s. 18, ibid., for "section 6" (w.e.f 1-2-1965).
4. Ins. by s. 18, ibid. (w.e.f. 1-2-1965).

108E

(d) prevents or attempts to prevent or does anything which he has any reason to believe
is likely to prevent any person from appearing before or being examined by an
Inspector acting in pursuance of his duties under this
Act;
shall be punishable with fine 1*[which shall not be less than two hundred rupees but
which may extend to one thousand rupees]

(5) If any person who has been convicted of any offence punishable under this Act is
again guilty of an offence involving contravention of the same provision, he shall be
punishable on a subsequent conviction with imprisonment for a term 1*[which shall not
be less than one month but which may extend to six months and with fine which shall not
be less than five hundred rupees but which may extend to three thousand rupees]:

Provided that for the purpose of this sub-section, no cognizance shall be taken of any
conviction made more than two years before the date on which the commission of the
offence which is being punished came to the knowledge of the Inspector.

(6) If any person fails or wilfully neglects to pay the wages of any employed person by
the date fixed by the authority in this behalf, he shall, without prejudice to any other
action that may be taken against him, be punishable with an additional fine which may
extend to
1*[one hundred rupees] for each day for which such failure or neglect continues.]

21.Procedure in trial of offences.

21. Procedure in trial of offences.- (1) No Court shall take cognizance of a complaint
against any person for an offence under sub-
section (1) of section 20 unless an application in respect of the facts constituting the
offence has been presented under section 15 and has been granted wholly or in part and
the authority empowered under the latter section or the appellate Court granting such
application has sanctioned the making of the complaint.

(2) Before sanctioning the making of a complaint against any person for an offence under
sub-section (1) of section 20, the authority empowered under section 15 or the appellate
Court, as the case may be, shall give such person an opportunity of showing cause
against the granting of such sanction, and the sanction shall not be granted if such
person satisfies the authority or Court that his default was due to--

(a) a bona fide error or bona fide dispute as to the amount payable to the employed
person, or

(b) the occurrence of an emergency, or the existence of exceptional circumstances, such

that the person responsible for
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 11 (w.e.f. 15-10-1982).
108F

the payment of the wages was unable, though exercising reasonable diligence, to make
prompt payment, or

(c) the failure of the employed person to apply for or accept payment.

(3) No Court shall take cognizance of a contravention of section

4 or of section 6 or of a contravention of any rule made under section
26 except on a complaint made by or with the sanction of an Inspector under this Act.
1*[(3A) No Court shall take congnizance of any offence punishable under sub-section (3)
or sub-section (4) of section 20 except on a complaint made by or with the sanction of an
Inspector under this
Act.]

(4) In imposing any fine for an offence under sub-section (1) of section 20 the Court shall
take into consideration the amount of any compensation already awarded against the
accused in any proceedings taken under section 15.22.Bar of suits.

22. Bar of suits.- No Court shall entertain any suit for the recovery of wages or of any
deduction from wages in so far as the sum so claimed--

(a) forms the subject of an application under section 15.which has been presented by the
plaintiff and which is pending before the authority appointed under that section or of an
appeal under section 17; or

(b) has formed the subject of a direction under section 15.in favour of the plaintiff; or

(c) has been adjudged, in any proceeding under section 15, not to be owed to the
plaintiff; or
(d) could have been recovered by an application under section 15.22A.

Protection of action taken in good faith.

2*[22A. Protection of action taken in good faith.- No suit, prosecution or other legal
proceeding shall lie against the Government or any officer of the Government for
anything which is in good faith done or intended to be done under this Act.]

23.Contracting out.
23. Contracting out.- Any contract or agreement, whether made before or after the
commencement of this Act, whereby an employed person relinquishes any right conferred
by this Act shall be null and void in so far as it purports to deprive him of such right.
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 19 (w.e.f. 1-2-1965).
2. Ins. by s. 20, ibid. (w.e.f. 1-2-1965).

108G
24.Application of Act to railways, air transport services, mines andoilfields.

1*[24. Application of Act to railways, air transport services, mines and oilfields.- The
powers by this Act conferred upon the State
Government shall, in relation to 2*[railways], 3*[air transport services,] mines and
oilfields, be powers of the Central Government.]

25.Display by notice of abstracts of the Act.

25. Display by notice of abstracts of the Act.- The person responsible for the payment of
wages to persons 4*[employed in a factory or an industrial or other establishment] shall
cause to be
4*[displayed in such factory or industrial or other establishment] a notice containing
such abstracts of this Act and of the rules made thereunder in English and in the language
of the majority of the persons employed 4*[in the factory or industrial or other
establishment], as may be prescribed.
25A.

Payment of undisbursed wages in cases of death of employed person.

3*[25A. Payment of undisbursed wages in cases of death of employed person.- (1)

Subject to the other provisions of the Act, all amounts payable to an employed person as
wages shall, if such amounts could not or cannot be paid on account of his death before
payment or on account of his whereabouts not being known,--

(a) be paid to the person nominated by him in this behalf in accordance with the rules
made under this Act; or

(b) where no such nomination has been made or where for any reasons such amounts
cannot be paid to the person so nominated, be deposited with the prescribed authority
who shall deal with the amounts so deposited in such manner as may be prescribed.

(2) Where, in accordance with the provisions of sub-section (1), all amounts payable to
an employed person as wages--

(a) are paid by the employer to the person nominated by the employed person; or
(b) are deposited by the employer with the prescribed authority,

the employer shall be discharged of his liability to pay those wages.]

26.Rule-making power.

26. Rule-making power.- (1) The State Government may make rules to regulate the
procedure to be followed by the authorities and Courts referred to in sections 15 and 17.
(2) The State Government may, 6***, by notification in the
Official Gazette, make rules for the purpose of carrying into effect the provisions of this
Act.

(3) In particular and without prejudice to the generality of the foregoing power, rules
made under sub-section (2) may--

(a) require the maintenance of such records, registers, returns and notices as are
necessary for the enforcement of the Act 7*[prescribe the form thereof and the
particulars to be entered in such registers or records];

(b) require the display in a conspicuous place on premises where employment is carried
on of notices specifying rates of wages payable to persons employed on such premises;

(c) provide for the regular inspection of the weights, measures and weighing machines
used by employers in checking or ascertaining the wages of persons employed by them;

(d) prescribe the manner of giving notice of the days on which wages will be paid;

(e) prescribe the authority competent to approve under sub-

section (1) of section 8 acts and omissions in respect of which fines may be imposed;
---------------------------------------------------------------------
1. Subs. by the A. O. 1937, for s. 24.2. Subs. by the A. O. 1950, for "Federal railways
(within the meaning of the Government of India Act, 1935)"
3. Ins. by Act 53 of 1964, s. 21 (w.e.f. 1-2-1965).
4. Subs. by Act 38 of 1982, s. 12 (w.e.f. 15-10-1982).
5. Ins by s. 13, ibid. (w.e.f. 1-3-1994).
6. The Words "subject to the control of the Governor-General in Council"
omitted by the A. O. 1937.7. Subs by Act 53 of 1964, s, 22, for "and prescribe the form
thereof" (w.e.f. 1-2-1965).

108H
(f) prescribe the procedure for the imposition of fines under section 8 and for the making
of the deductions referred to in section 10;

(g) prescribe the conditions subject to which deductions may be made under the proviso
to sub-section (2) of section
9;

(h) prescribe the authority competent to approve the purposes on which the proceeds of
fines shall be expended;
(i) prescribe the extent to which advances may be made and the instalments by which
they may be recovered with reference to clause (b) of section 12;

1*[(ia) prescribe the extent to which loans may be granted and the rate of interest
payable thereon with reference to section 12A;

(ib) prescribe the powers of Inspectors for the purposes of this Act;]

(j) regulate the scales of costs which may be allowed in proceedings under this Act;

(k) prescribe the amount of court-fees payable in respect of any proceedings under this
Act, 2***;

(l) prescribe the abstracts to be contained in the notices required by section 25; 1* 3*xxx

3*[(la) prescribe the form and manner in which nominations may be made for the
purposes of sub-section (1) of section 25A, the cancellation or variation of any such
nomination, or the making of any fresh nomination in the event of the nominee
predeceasing the person making nomination, and other matters connected with such
nominations:

(lb) specify the authority with whom amounts required to be deposited under clause (b)
of sub-section (1) of section 25A shall be deposited, and the manner in which such
authority shall deal with the amounts deposited with it under that clause;]

1*[(m) provide for any other matter which is to be or may be prescribed.]

(4) In making any rule under this section the State Government may provide that a
contravention of the rule shall be punishable with fine which may extend to two hundred
rupees.

(5) All rules made under this section shall be subject to the condition of previous
publication, and the date to be specified under clause (3) of section 23 of the General
Clauses Act, 1897 (10 of
1897), shall not be less than three months from the date on which the draft of the
proposed rules was published.

1*[(6) Every rule made by the Central Government under this section shall be laid, as
soon as may be after it is made, before each
House of Parliament while it is in session for a total period of thirty days which may be
comprised in one session or in 5*[two or more successive sessions], and if, before the
expiry of the session
5*[immediately following the session or the successive sessions aforesaid], both Houses
agree in making
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).
2. The word "and" omitted by s. 22, ibid. (w.e.f. 1-2-1965).
3. Omitted by Act 38 of 1982, s. 14 (w.e.f. 15-10-1982).
4. Ins. by s. 14, ibid. (w.e.f. 15-10-1982).
5. Subs. by s. 14, ibid. (w.e.f. 15-10-1982).

108I

any modification in the rule, or both Houses agree that the rule should not be made, the
rule shall thereafter have effect only in such modified form or be of no effect, as the case
may be; so, however, that any such modification or annulment shall be without prejudice
to the validity of anything previously done under that rule.

THE PAYMENT OF BONUS ACT, 1965

(21 of 1965)1
[25th September, 1965]
2
[An Act to provide for the payment of bonus to persons employed in
certain establishments on the basis of profits or on the basis of
production or productivity and for matters connected therewith.]

BE it enacted by Parliament in the Sixteenth Year of the Republic of India as

follows:-

1. Short title, extent and application.-(1) This Act may be called the Payment of
Bonus Act, 1965.
(2) It extends to the whole of India3[***].
(3). Save as otherwise provided in this Act, it shall apply to –
(a) every factory; and
(b) every other establishment in which twenty or more persons are employed on
any day during an accounting year.
4
[Provided that the appropriate Government may, after giving not
less than two months’ notice of its intention so to do, by notification in
the Official Gazette, apply the provisions of this Act with effect from; such
accounting year as may be specified in the notification, to any
establishment or class of establishment [including an establishment
being a factory within the meaning of sub-clause (ii) of clause (m) of
section 2 of the Factories Act, 1948 (63 of 1948)] employing such number
of persons less than twenty as may be specified in the notification; so,
however, that the number of persons so specified shall in no case be less
than ten.]

(4). Save as otherwise provided in this Act, the provisions of this Act shall, in
relation to a factory or other establishment to which this Act applies, have effect

1
The Act has been extended to Goa, Daman and Die by Act 6 of 1977, sec. 2 and sch.
2
Subs. by Act 23 of 1976, sec. 2, for the long title (w.r.e.f 25-9-1975).
3
The words ”except the State of Jammu and Kashmir” omitted by Act 51 of 1970, sec. 2 and sch.
(w.e.f 1-9-1971).
4
Ins. by Act 23 of 1976, sec. 3 (w.r.e.f 1-9-1975).
in respect of the accounting year commencing on any day in the year 1964 and in
respect of every subsequent accounting year:
5
[Provided that in relation to the State of Jammu and Kashmir, the reference to
the accounting year commencing on any day in the year 1964 and every
subsequent accounting year shall be construed as reference to the accounting year
commencing on any day in the 1968 and every subsequent accounting year:]
4
[Provided further that when the provisions of this Act have been made applicable
to any establishment or class of establishments by the issue of a notification under
the proviso to sub-section (3), the reference to the accounting year commencing on
any day in the year 1964 and every subsequent accounting year or, as the case may
be the reference to the accounting year commencing on any day in the year 1968
and every subsequent accounting year, shall, in relation to such establishment or
class of establishments, be construed as a reference to the accounting year
specified in such notification and every subsequent accounting year.]

(5) An establishment to which this Act applies 1[***] shall continue to be

governed by this Act notwithstanding that the number of person employed therein
falls below twenty 2[or, as the case may be, the number specified in the notification
issued under the proviso to sub-section (3)].

2. Definition.- In this Act, unless the context otherwise requires,-

(1) “accounting year” means -

(i) in relation to a corporation, the year ending on the day on which the
books and accounts of the corporation are to be closed and
balanced.

(ii) in relation to a company, the period in respect of which any profit

and loss account of the company laid before it in annual general
meeting is made up, whether that period is a year or not;

(iii) in any other case -

(a) the year commencing on the 1st day of April; or

(b) if the accounts of an establishment maintained by the employer thereof
are closed and balanced on any day other than the 31st day of March, then, at the
option of the employer, the year ending on the day on which its accounts are so
closed and balanced:

Provided that an option once exercised by the employer under

paragraph (b) of this sub-clause shall not again be exercised except with the
5
Added by Act 51 of 1970 sec. 2 and sch. (w.e.f 1-9-1971)
1
The words “under clause (b) of sub-section (3)” omitted by Act pf 1976, sec. 3 (w.r.e.f.
25.9.1975)
2
Added by Act 23 of 1976, sec. 3 (w.r.e.f. 25.9.1975)
previous permission in writing of the prescribed authority and upon such
conditions as that authority may think fit;

(2) “agricultural income” shall have the same meaning as in the Income-tax
Act;
(3) “agricultural income-tax law” means any law for the time being in
force relating to the levy of tax on agricultural income;
(4) “allocable surplus” means-
(a) in relation to an employer, being a company 3[(other than a banking
company)] which has not made the arrangements prescribed under the Income-
tax Act for the declaration and payment within India of the dividends payable out
of its profits in accordance with the provisions of section 194 of that Act, sixty-
seven per cent of the available surplus in an accounting; year;
(b) in any other case, sixty percent of such available surplus;
1
[***]

(5) “appropriate Government” means-

(i) in relation to an establishment in respect of which the appropriate

Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central
Government, the Central Government;
(ii) in relation to any other establishment, the Government of the State in which
that other establishment is situate;
(6) “available surplus” means the available surplus computed under section 5;
(7) “award” means an interim or a final determination of any industrial
dispute or of any question relating thereto by any Labour Court,
Industrial Tribunal or National Tribunal constituted under the
Industrial Disputes Act, 1947 (14 of 1947), or by any other authority
constituted under any corresponding law relating to investigation
and settlement of industrial disputes in force in a State and includes
an arbitration award made under section 10A of that Act or under
that law;
(8) “banking company” means a banking company as defined in section 5 of the
Banking Companies Act, 1949 (10 of 1949), and includes the State Bank of
India, any subsidiary bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959 (38 of 1959) 2[any corresponding new bank specified in the
First Schedule to the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (5 of 1970), 3[any corresponding new bank
constituted under section 3 of the Banking Companies (Acquisition and
Transfer of Under takings) Act, 1980 (40 of 1980),] any co-operative bank as
defined in clause (bii) of section 2 of the Reserve Bank of India Act, 1934 (2

3
Omitted by Act 23 of 1976, sec. 4(w.r.e.f. 25.9.1975) and ins. by Act 66 of 1980, sec. 2 (w.r.e.f.
21.8.1980)
1
Certain words omitted by Act 23 of 1976, sec. 4 (w.r.e.f. 25.9.1975)
2
Ins. by Act 23 of 1976, sec. 4 (w.r.e.f. 25.9.1975)
3
Ins. by Act 66 of 1980, sec. 2 (w.r.e.f. 21.8.1980)
 of 1934),] and any other banking institution which may be notified in this
behalf by the Central Government;
(9) “company” means any company as defined is section3 of the Companies Act,
1956 (1 of 1956), and includes a foreign company within the meaning of
section 591 of that Act;
(10) “co-operative society” means society registered or deemed to be registered
under the Co-operative Societies Act, 1912 (2 of 1912), or any other law for
the time being in force in any State relating to co-operating societies;
(11) “corporation” means any body corporate established by or under any
Central, Provincial or State Act but does not include a company or a co-
operative society;
(12) “direct tax” means-
(a) any tax chargeable under-
(i) the Income-tax Act;
(ii) the Super Profits Tax Act, 1963 (14 of 1963);
(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);
(iv) the agricultural income-tax law; and
(b) any other tax which, having regard to its nature or incidence, may by
declared by the Central Government, by notification in the Official
Gazette, to be a direct tax for the purposes of this Act;
(13) “employee” means any person (other than an apprentice) employed on a
salary or wage not exceeding 1[three thousand and five hundred rupees] per
mensem in any industry to do any skilled or unskilled manual, supervisory,
managerial, administrative, technical or clerical work for hire or reward,
whether the terms of employment be express or implied;

(14) “employer includes-

(i) in relation to an establishment which is a factory, the owner or occupier
of the factory, including the agent of such owner or occupier, the legal
representative of a deceased owner or occupier and where a person has
been named as a manager of the factory under clause (f) of sub-section
(1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so
named; and
(ii) in relation to any other establishment, the person who, or the authority
which, has the ultimate control over the affairs of the establishment and
where the said affairs are entrusted to a manager, managing director or
managing agent, such manager, managing director or managing agent;
(15) “establishment in private sector” means any establishment other
than an establishment in public sector;
(16) “establishment in public sector” means an establishment owned, controlled
or managed by-

(a) a Government company as defined in section 617 of the Companies Act,

1956 (1 of 1956);

1
subs. by Act 34 of 1995, sec. 2 for ‘two thousand and five hundred rupees’ (w.r.e.f. 1.4.1993)
 (b) a corporation in which not less than forty per cent of its capital is held
(whether singly or taken together) by-
(i) the Government; or
(ii) the Reserve Bank of India; or
(iii) a corporation owned by the Government or the Reserve Bank of
India;
(17) “factory” shall have the same meaning as in clause (m) of section 2
of the Factories Act, 1948 (63 of 1948);
(18) “gross profits” means the gross profits calculated under section 4;
(19) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961);
(20) “prescribed” means prescribed by rules made under this Act;
(21) “salary or wage” means all remuneration (other than remuneration in
respect of over-time work) capable of being expressed in terms of money,
which would, if the terms of employment, express or implied, were fulfilled,
be payable to an employee in respect of his employment or of work done in
such employment and includes dearness allowance (that is to say, all cash
payments, by whatever name called, paid to an employee on account of a rise
in the cost of living), but does not include-
(i) any other allowance which the employee is for the time being entitled to;
(ii) the value of any house accommodation or supply of light, water, medical
attendance or other amenity or of any service or of any concessional
supply of food grains or other articles;
(iii) any traveling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or
provident fund or for the benefit of the employee under any law for the
time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement
benefit payable to the employee or any ex gratia payment made to him;

(vii) any commission payable to the employee.

Explanation. – Where an employee is given in lieu of the whole or part of the salary or wage
payable to him, free food allowance or free food by his employer, such food allowance or the value
of such food shall, for the purpose of this clause, be deemed to from part of the salary or wage of
such employee;
(22) words and expressions used but not defined in this Act and defined
in the Industrial Disputes Act, 1947 (14 of 1947) shall have the
meanings respectively assigned to them in that Act.

3. Establishments to include departments, undertakings and

branches.--
Where an establishment consists of different department or undertakings
or has branches, whether situated in the same place or in different places,
all; such departments or undertakings or branches shall be treated as
parts of the same establishment for the purpose of computation of bonus
under this Act:
 Provided that where for any accounting year a separate balance-sheet and
profit and loss account are prepared and maintained in respect of any such
department or undertaking or branch, then such department or undertaking or
branch shall be treated as a separate establishment for the purpose of
computation of bonus, under this Act for that year, unless such department or
undertaking or branch was, immediately before the commencement of that
accounting year treated as part of the establishment for the purpose of
computation of bonus.
1
[4. Computation of gross profits.—The gross profits derived by an employer from
an establishment in respect of the accounting year shall—
(a) in the case of a banking company, be calculated in the manner specified
in the First Schedule;
(b) in any other case, be calculated in the manner specified in the Second
Schedule;]
5. Computation of available surplus.—The available surplus in respect of any
accounting year shall be the gross profits for that year after deducting therefrom
the sums referred to in section 6;
2
[Provided that the available surplus in respect of the accounting
year commencing on any day 1968 and in respect of every subsequent
accounting year shall be the aggregate of –
(a) the gross profits for that accounting year after deducting therefrom
the sums referred to in section 6; and
(b) an amount equal to the difference between --

(i) the direct tax, calculated in accordance with the provisions of

section 7, in respect of an amount equal to the gross profits of
the employer for the immediately preceding accounting year; and
(ii) the direct tax, calculated in accordance with the provisions of
section 7, in respect of an amount equal to the gross profits of
the employer for such preceding accounting year after deducting
therefrom the amount of bonus which the employer has paid or
is liable to pay to his employees in accordance with the
provisions of this Act for that year.]

6. Sums deductible from gross profits.—The following sums shall be

deducted from the gross profits as prior charges, namely:-

(a) any amount by way of depreciation admissible in accordance

with the provisions of sub-section (1) of section 32 of the
Income-tax Act, or in accordance with the provisions of the
agricultural income-tax law, as the case may be:
Provided that where an employer has been paying bonus to his
employees under a settlement or an award or agreement made

1
Subs. by Act 66 of 1980, sec. 3, for section 4 (w.r.e.f. 21.8.1980)
2
Added by Act 8 of 1969, sec. 2 (w.r.e.f. 26.3.1969)
 before the 29th May, 1965, and subsisting on that date after
deducting from the gross profits notional normal depreciation,
then, the amount of depreciation to be deducted under this
clause shall, at the option of such employer (such option to be
exercised once and within one year from the date) continue to be
such notional normal depreciation;
(b) any amount by way of 1[development rebate or investment
allowance or development allowance] which the employer is
entitled to deduct from his income under the income-tax Act;
(c) subject to the provisions of section 7, any direct tax which the
employer is liable to pay for the accounting year in respect of his
income, profits and gains during that year;
(d) such further sums as are specified in respect of the employer in
the 2[Third Schedule].

7. Calculation of direct tax payable by the employer.—3[Any direct tax

payable by the employer] for any accounting year shall, subject to the
following provisions, be calculated at the rates applicable to the income
of the employer for that year, namely:-
(a) in calculating such tax no account shall be taken of --
(i) any loss incurred by the employer in respect of any previous
accounting year and carried forward under any law for the
time being in force relating to direct taxes;
(ii) any arrears of depreciation which the employer is entitled to
add to the amount of the allowance for depreciation for any
following accounting year or years under sub-section (2) of
section 32 of the Income-tax Act;
(iii) any exemption conferred on the employer under section 84
of the Income-tax Act or of any deduction to which he is
entitled under sub-section (1) of section,101 of that Act, as in
force immediately before the commencement of the Finance
Act, 1965 (10 of 1965);

(b) where the employer is a religious or a charitable institution to which

the provisions of section 32 do not apply and the whole or any part
of its income is exempt from tax under the Income-tax Act, then, with
respect to the income so exempted, such institution shall be treated
as if it were a company in which the public are substantially
interested within the meaning of that Act;
(c) where the employer is individual or a Hindu Undivided Family, the
tax payable by such employer under the Income-tax Act shall be

1
Subs. by Act 66 of 1980, sec. 4, for :development rebate or development allowance” (w.r.e.f.
21.8.1980)
2
Subs. by Act of 1980,, sec. 4, for “Second Schedule: (w.r.e.f. 21.8.1980)
3
Subs. by Act 8 of 1969, Sec. 3, for “For the purpose of clause (c) of section 6, direct tax
payable by the employer “ (w.r.e.f. 26.3.1969)
 calculated on the basis that the income derived by him from the
establishment is his only income;
(d) where the income of any employer includes any profits and gains
derived from the export of any goods or merchandise out of India
and any rebate on such income in allowed under any law for the time
being in force relating to direct taxes, then, no account shall be taken
of such rebate;
(e) no account shall be taken of any rebate 1[(other than development
rebate or investment allowance or development allowance)] or credit
or relief or deduction (not herein before mentioned in this section) in
the payment of any direct tax allowed under any law for the time
being in force relating to direct taxes or under the relevant annual
Finance Act, for the development of any industry.

8. Eligibility for bonus.—Every employee shall be entitled to be paid by

his employer in an accounting year, bonus, in accordance with the
provisions of this Act, provided he has worked in the establishment for
not less than thirty working days in that year.

9. Disqualification for bonus.—Notwithstanding anything contained in

this Act, an employee shall be disqualified from receiving bonus under
this Act, if he is dismissed from service for --
(a) fraud; or
(b) riotous or violent behaviour while on the premises of the
establishment; or
(c) theft, misappropriation or sabotage of any property of the
establishment.
1
[10. Payment of minimum bonus.—Subject to the other provisions of this
Act, every employer shall be bound to pay to every employee in respect
of the accounting year commencing on any day in the year 1979 and in
respect of every subsequent accounting year, a minimum bonus which
shall be 8.33 per cent of the salary or wage earned by the employee
during the accounting year or one hundred rupees, whichever is higher,
whether or not the employer has any allocable surplus in the accounting
year:

Provided that where an employee has not completed fifteen years of

age at the beginning of the accounting year, the provisions of this section
shall have effecting relation to such employee as if for the words “one
hundred rupees”, the words “sixty rupees” were substituted.]

1
subs. by Act 66 of 1980, sec. 5, “(other than development rebate or development allowance)”
1
Section 10, subs. by Act 23 of 1976, sec. 7 (w.r.e.f. 25.9.1975) and again subs. Act of 66 of
1980, sec. 6 (w.r.e.f. 21.8.1980)
2
[11. Payment of maximum bonus.—(1) Where in respect of any
accounting year referred to in section 10, the allocable surplus exceeds
the amount of minimum bonus payable to the employees under that
section, the employer shall, in lieu of such minimum bonus, be bound to
pay to every employee in respect of that accounting; year bonus which
shall be an amount in proportion to the salary or wage earned by the
employee during the accounting year subject to a maximum of twenty per
cent, of such salary or wage.

(2) In computing the allocable surplus under this section, the amount
set on or the amount set off under the provisions of section 15 shall be
taken into account in accordance with the provisions of that section.]
3
[12. Calculation of bonus with respect to certain employees.—Where the
salary or wage of an employee exceeds 4[two thousand and five hundred
rupees] per mensem, the bonus payable to such employee under section
10 or, as the case may be, under section 11, shall be calculated as if his
salary or wage were [two thousand and five hundred rupees] per
mensem.]
5
[13. Proportionate reduction in bonus in certain cases.—Where an
employee has not worked for all the working days in an accounting year,
the minimum bonus of one hundred rupees or, as the case may be, of
sixty rupees, if such bonus is higher than 8.33 per cent, of his salary or
wage for the days he has worked in that accounting year, shall be
proportionately reduced.]

14. Computation of number of working days.—For the purposes of

section 13, an employee shall be deemed to have worked in an
establishment in any accounting year also on the days on which--
(a) he has been laid off under an agreement or as permitted by
standing orders under the Industrial Employment (Standing
Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes
Act, 1947 (14 of 1947), or under any other law applicable to the
establishment;
(b) he has been on leave with salary or wage;
(c) he has been absent due to temporary disablement caused by
accident arising out of and in the course of his employment; and
(d) the employee has been on maternity leave with salary or wage,
during the accounting year.

2
Section 11 omitted by Act 23 of 1976, sec. 8 (w.r.e.f. ) and ins. by Act 66 of 1980, sec. 6 (w.r.e.f.
21.8.1980)
3
Section 12 omitted by Act 30of 1985, sec. 2 and ins. by Act 67of 1985, sec. 3 (w.r.e.f.7.11.1985)
4
subs. by Act 34 of 1995, sec. 3 for ‘one thousand and six hundred rupees’ (w,.r.e.f. 1.4.1993)
5
subs by Act 66 of 1980, sec. 8, for section 13 (w.r.e.f. 21.8.1980)
1
[15. Set on and set off of allocable surplus.— (1) Where for any
accounting year, the allocable surplus exceeds the amount of maximum
bonus payable to the employees in the establishment under section 11,
then, the excess shall, subject to a limit of twenty per cent. of the total
salary or wage of the employees employed in the establishment in that
accounting year, be carried forward for being set on in the succeeding
accounting year and so on up to and inclusive of the fourth accounting
year to be utilized for the purpose of payment of bonus in the manner
illustrated in the Fourth Schedule.
(2) Where for any accounting year, there is no available surplus or the
allocable surplus in respect of that year falls short of the amount of
minimum bonus payable to the employees in the establishment under
section 10, and there is no amount of sufficient amount carried forward
and set on under sub-section (1) which could be utilized for the purpose
of payment of the minimum bonus, then, such minimum amount or the
deficiency, as the case may be, shall be carried forward for being set off
in the succeeding accounting year and so on up to and inclusive of the
fourth accounting year in the manner illustrated in the Fourth Schedule.
(3) The principle of set on and set off as illustrated in the Fourth
Schedule shall apply to all other cases not covered by sub-section (1) or
sub-section (2) for the purpose of payment of bonus under this Act.
(4) Where in any accounting year any amount has been carried forward
and set on or set off under this section, then, in calculating bonus for the
succeeding accounting year, the amount of set on or set off carried
forward from the earliest accounting year shall first be taken into
account.]

16. Special provisions with respect to certain establishment— 2[(1)

Where an establishment newly set up, whether before or after the
commencement of this Act, the employees of such establishment shall be
entitled to be paid bonus under this Act in accordance with the provisions
of sub-section (1A), (1B) and (1C).

(1A) In the first five accounting year following the accounting year in
which the employer sells the goods produced or manufactured by him or
renders services, as the case may be, from such establishment, bonus
shall be payable only in respect of the accounting year in which the
employer derives profit from such establishment and such bonus shall be
calculated in accordance with the provisions of this act in relation to that
year, but with out applying the provisions of section 15.

(1B) For the sixth and seventh accounting year following the accounting
year in which the employer sells the goods produced or manufactured by
him or renders services, as the case may be, from such establishment,

1
Subs. by Act 66 of 1980, sec. 9, for section 13 (w.r.e.f. 21.8.1980)
2
Subs. by Act 23 of 1976, sec. 10, for sub-section (1) and Explanation thereto (w.r.e.f. 25.9.1975)
the provisions of section 15 shall apply subject other following
modifications, namely:--
(i) for the sixth accounting year --

set on or set off, as the case may be, shall be made in the
manner illustrated in the 1[Fourth Schedule] taking into account
the excess or deficiency, if any, as the case may be, of the
allocable surplus set on or set off in respect of the fifth and sixth
accounting years;
(ii) for the seventh accounting year --

set on or set off, as the case may be, shall be made in the
manner illustrated in the 1[Fourth Schedule] taking into account
the excess or deficiency, if any, as the case may be, of the
allocable surplus set on or set off in respect of the fifth, sixth and
seventh accounting year.

(1C) From the eighth accounting year following the accounting year in
which the employer sells the goods produced or manufactured by him or
renders services, as the case may be, from such establishment, the
provisions of section 15 shall apply in relation to such establishment as
they apply in relation to any other establishment.

Explanation I. – For the purpose of sub-section (1), an establishment shall

not be newly set up merely by reason of a change in its location,
management, name or ownership.

Explanation II. -- For the purpose of sub-section (1A), an employer shall

not be deemed to have derived profit in any accounting year unless –

(a) he has made provision for that year’s depreciation to which he is

entitled under the Income-tax Act or, as the case may be, under
the agricultural income-tax, law; and
(b) the arrears of such depreciation and losses incurred by him in
respect of the establishment for the previous accounting years
have been fully set off against his profits.

Explanation III. – For the purpose of sub-section (1A), (1B) and (1C), sale
of the goods produced or manufactured during the course of the trial
running of any factory or of the prospecting stage of any mine or an oil
field shall not be taken into consideration and where any question arises
with regard to such production or manufacture, the decision of the
appropriate Government, made after giving the parties a reasonable
opportunity of representing the case, shall be final and shall not be called
in question by any court or other authority.]
1
Subs. by Act 66 of 1980, sec. 10, for “Third Schedule” (w.r.e.f. 21.8.1980)
(2) The provisions of 1[sub-section (1), (1A), (1B) and (1C)] shall, so far
as may be, apply to new departments or undertakings or branches set up
by existing establishments:

Provided that if an employer in relation to an existing establishment

consisting of different (departments or undertakings or branches
(whether or not in the same industry) set up at different periods has,
before the 29th May, 1965, been paying bonus to the employees of all;
such departments or undertakings or branches, irrespective of the date
on which such departments or undertakings or branches were set up, on
the basis of the consolidated profits computed in respect of all such
departments or undertaking or branches, then, such employer shall be
liable to pay bonus in accordance with the provisions of this Act to the
employees of all such departments or undertaking or branches (whether
set up before or after that date) on the basis of the consolidated profits
computed as aforesaid.

17. Adjustment of customary or interim bonus against bonus payable

under the Act.—Whether in any accounting year --

(a) an employer has paid any puja bonus or other customary bonus
to an employee; or
(b) an employer has paid a part of the bonus payable under this Act
to an employee before the date on which such bonus becomes
payable.

then, the employer shall be entitled to deduct the amount of bonus so

paid from the amount of bonus payable by him to the employee under this
Act in respect of that accounting year and the employee shall be entitled
to receive only the balance.

18. Deduction of certain amounts from bonus payable under the Act. –
Where in any accounting year, an employee is found guilty of misconduct
causing financial loss to the employer, then, it shall be lawful for the
employer to deduct the amount of loss from the amount of bonus payable
by him to the employee under this Act in respect of that accounting year
only and the employee shall be entitled to receive the balance, if any.

19. Time-limit for payment of bonus. – 2[All amounts] payable to an

employee by way of bonus under this Act shall be paid in cash by his
employer --

1
Subs by Act 23 of 1976, sec. 12, for “sub-section (1) “ (w.r.e.f. 25.9.1975)
2
subs. by Act 23 of 1976, sec. 13, for “(1) subject to the provisions of this section, all amounts :
(w.r.e.f. 25.9.1975)
 (a) where there is a dispute regarding payment of bonus pending
before any authority under section 22, within a month from the
date on which the award becomes enforceable or the settlement
comes into operation, in respect of such dispute;
(b) in any other case, within a period of eight months from the close
of the accounting year:
Provided that the appropriate Government or such authority as the
appropriate Government may specify in this behalf may, upon an
application made to it by the employer and for sufficient reasons, by
order, extended the said period of eight months to such further period or
periods as it thinks fit; so, however, that the total period so extended
shall not in any case exceed two years.
1
[***]
2
[***]
20. Application of Act to establishments in public sector in certain
cases.-
3
[(1)] If in any accounting year an establishment in public sector sells any
goods produced or manufactured by it or renders any services, in
competition with an establishment in private sector, and the income from
such sale or services or both less than twenty percent of the gross
income of the establishment in public sector for that year, then, the
provision of this Act shall apply in relation to such establishment in
public sector as they apply in relation to a like establishment in private
sector.
4
[(2) Save as otherwise provided in sub-section (1), nothing in this Act
shall apply to the employees employed by any establishment in public
sector]

21. Recovery of bonus due from an employer.- Where any money is due
to an employee by way of bonus from his employer under a settlement or
an award or agreement, the employee himself or any other person
authorised by him in writing in this behalf, or in the case of the death of
the employee, his assignee or heirs may, without prejudice to any other
mode of recovery, make an application to the appropriate Government or
such authority as the appropriate Government may specify in this behalf
is satisfied that any money is so due, it shall issue a certificate for that
amount to the Collector who shall proceed to recover the same in the
same manner as an arrears of land revenue.
1
Sub-sections (2) to (7) ins. by Act 68 of 1972, sec. 4 (w.r.e.f. 1.9.1972) and omitted by Act 23 of
1976, sec. 13 (w.r.e.f. 25.9.1975)
2
Sub-section (8) ins. by Act 39 of 1973, sec. 4(w.r.e.f. 1.9.1973) and omitted by Act 55 of 1973,
sec. 2 (w.r.e.f 1.9.1973)
3
The brackets and figure (1) omitted by Act 23 of 1976, sec. 14 (w.r.e.f. 25.9.1975) and again
section 20 re-numbered as sub-section (1) thereof by Act 66 of 1980, sec. 11 (w.r.e.f.
27.12.1980)
4
sub-section (2) omitted by Act of 1976, sec, 14(w.r.e.f. 25.9.1975) and ins. by Act 66 of 1980,
sec. 11 (w.r.e.f. 27.12.1980)
 Provided that every such application shall be made within one year
from the date on which the money became due to the employee from the
employer.
Provided further that any such application may be entertained after
the expiry of the said period of one year, if the appropriate Government is
satisfied that the applicant had sufficient cause for not making the
application within the said period.

Explanation- In this section and in 5[sections 22,23, 24 and 25], “employee”

includes a person who is entitled to the payment of bonus under this Act but who
is no longer in employment.
22. Reference of disputes under the Act.- Where any dispute arises
between an employer and his employees with respect to the bonus
payable under this Act or with respect to the application of this Act to an
establishment in public sector, then, such dispute shall be deemed to be
an industries dispute within the meaning of the Industrial Disputes Act,
1947 (14 of 1947), or of any corresponding law relating to investigation
and settlement of industrial disputes in force in a State and the provisions
of that Act or, as the case may be, such law, shall, save as otherwise
expressly provided, apply accordingly.

23. Presumption about accuracy of balance-sheet and profit and loss

account of corporation and companies.- Where, during the course of
proceedings before any arbitrator or Tribunal under the Industrial
Disputes Act, 1947 (14 of 1947) or under any corresponding law relating
to investigation and settlement of industrial disputes in force in a State
(hereinafter in this section 1[and in 2[sections 24 and 25] referred to as the
“said authority” ) to which any dispute of the nature specified in section
22 has been referred, the balance-sheet and the profit and loss account of
an employer, being a corporation or a company (other than a banking
company), duly audited by the comptroller and Auditor-General of India or
by auditors duly qualified to Act as auditors of companies under sub-
section (1) of section 226 of the Companies Act, 1956 (1 of 1956), are
produced before it, then, the said authority may presume the statements
and particulars contained in such balance-sheet and profit and loss
account to be accurate and it shall not be necessary for the corporation
or the company to prove the accuracy of such statements and particulars
by the filing of an affidavit or by any other mode.
Provided that where the said authority is satisfied that the statement
and particulars contained in the balance-sheet or the profit and loss
account of the corporation or the company are not accurate, it may take
such steps as it thinks necessary to find our the accuracy of such
statement and particulars.
5
Subs. By Act 66 of 1980, sec. 12, for “sections 22,23 and 25” (w.r.e.f. 21.8.1980)
1
Subs. by Act 23 of 1976 , Sec. 16, for “and in sections 24 and 25” (w.r.e.f. 25.9.1975).
2
Subs. by Act 66 of 1980, sec. 13, for “section 25” (w.r.e.f. 21.8.1980)
 (2) When an application is made to the said authority by any trade
union being a party to the dispute or where there is no trade union, by the
employees being a party to the dispute requiring any clarification relating
to any item in the balance-sheet or the profit and loss account it may,
after satisfying itself that such clarification is necessary, by order, direct
the corporation or, as the case may be, the company, to furnish to the
trade union or the employees such clarification within such time as may
be specified in the direction and the corporation or , as the case may be,
the company, shall comply with such direction.
3
[24. Audited accounts of banking companies not to be questioned. –(1)
Where any dispute of the nature specified in section 22 between an
employer , being a banking company, and its employees has been
referred to the said authority under that section and during the course of
proceedings the accounts of the banking company duly audited and
produced before it, the said authority shall not permit any trade union or
employees to question the correctness of such accounts , but the trade
union or employees to question the correctness of such accounts, but the
trade union or employees may be permitted to obtain from the banking
company such information as is necessary for verifying the amount of
bonus due under this Act.
(2) Nothing contained in sub-section (1) shall enable trade union of
the employees to obtain any information which the banking company is
not compelled to furnish under the provisions of section 34A of the
Banking Regulation Act, 1949 (10 of 1949)].

25. Audit of accounts of employers, not being corporations or

companies.- (1) Where any dispute of the nature specified in section 22
between an employer, not being a corporation or a company, and his
employees has been referred to the said authority under that section and
the accounts of such employer audited by any auditor duly qualified to
act as auditor of companies under sub-section (1) of section 226 of the
Companies Act, 1956 (1 of 1956) , are produced before the said authority,
the provisions of section 23, shall , so far as may be, apply to the
accounts so audited.

(2) When the said authority finds that the accounts of such employer
of such employer have not been audited by any such auditor and it is of
opinion that an audit of the accounts of such employer is necessary for
deciding the question referred to it, then, it may, by order direct the
employer to get his accounts audited within such time as may be
specified in the direction or within such further time as it may allow by
such auditor or auditors as it thinks fit and thereupon the employer shall
comply with such direction.

3
Ins. by Act 66 of 1980 , sec. 14 (w.r.e.f. 21.8.1980)
 (3) Where an employer fails to get the accounts audited under sub-
section (2) the said authority may, without prejudice to the provisions of
section 28, get the accounts audited by such auditor or auditors as it
thinks fit.

(4) When the accounts are audited under sub-section (2) or sub-
section (3) the provision of section 23 shall, so far as may be, apply to the
accounts so audited.

(5) The expenses of and incidental to, any audit under sub-section
(3) (including the remunerating of the auditor or auditors) shall be
determined by the said authority (which determination shall be final) and
paid by the employer and in default or such payment shall be recoverable
from the employer in the manner provided in section 21.

26. Maintenance of register, records, etc. – Every employer shall prepare

and maintain such registers, records and other documents in such form
and in such manner as may prescribed.

27. Inspectors. – (1) The appropriate Government may, by notification on

the Official Gazette, appoint such person as it think fit to be Inspectors for
the purposes of this Act and may define the limits within which they shall
exercise jurisdiction.
(2) An Inspector appointed under sub-section (1) may, for the purpose
of ascertaining whether any of the provisions of this Act has been
complied with --
(a) Require an employer to furnish such information as he may
consider necessary;
(b) at any reasonable time and with such assistance, if any, as he
thinks fit enter any establishment or any premises connected
therewith and require any one found in charge thereof to produce
before him for examination any accounts, books, registers and
other documents relating to the employment of persons or the
payment of salary or wage or bonus in the establishment;
(c) examine with respect to any matter relevant to any of the
purposes aforesaid, the employer, his agent or servant or any
other person found in charge of the establishment or any
premises connected therewith or any person whom the Inspector
has reasonable cause to believe to be or to have been an
employee in the establishment;
(d) make copies of, or take extracts from, any book, register or other
document maintained in relation to the establishment;
(e) exercise such other powers as may prescribed.
(3) Every Inspector shall be deemed to be a public servant within the
meaning of the Indian penal Code (45 of 1860).
(4) Any person required to produce any accounts, book, register or
other documents or to give information by an Inspector under sub-
section (1) shall be legally bound to do so.
1
[(5) Nothing contained in this section shall enable an Inspector to require
a banking company to furnish or disclose any statement or information or
to produce, or give inspection of any its books of account or other
documents which a banking company cannot be compelled to furnish,
disclose, produce or give inspection of, under the provision of section
34A of the Banking Regulation Act, 1949 (10 of 1949).

28. Penalty.- if any person-

(a) contravenes any of the provision of this Act or any rule made
thereunder, or
(b) to whom a direction is given or a requisition is made under
this Act fails to comply with the direction or requisition,
he shall be punishable with imprisonment for a term which may extend to
six months, or with fine which may extend to one thousand rupees, or
with both.

29. Offences by companies.- (1) If the person committing an offence

under this Act is a company, every person who, at the time the offence
was committed, was in charge of, and was responsible to, the company
for the conduct of business of the company, as well as the company,
shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any
such person liable to any punishment if he proves that the offence was
committed without his knowledge or that he exercised all; due diligence
to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an
offence under this Act has been committed by a company and it is proved
that the offence has been committed with the consent or connivance of,
or is attributable to any neglect on the part of, any director, manager,
secretary or other officer of the company, such director, manager,
secretary or other officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.

Explanation. – For the purposes of this section, --

(a) “company” means any body corporate and includes a firm or
other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.

30. Cognizance of offences. – (1) No court shall take cognizance of any

offence punishable under this Act, save on complaint made by or under
1
Ins. by Act 66 of 1980, sec. 15 (w.r.e.f. 21.8.1980)
the authority of the appropriate Government 1[or an officer of that
Government (not below the rank of a Regional Labour Commissioner in
the case of an officer of the Central Government, and not below the rank
of a Labour Commissioner in the case of an officer of the State
Government) specially authorised in this behalf by that Government].
(2) No court inferior to that of a presidency magistrate or a magistrate of
the first class shall try any offence punishable under this Act.

31. Protection of action taken under the Act. – No suit, prosecution or

other legal proceeding shall lie against the Government or any officer of
the Government for anything which is in good faith done or intended to
be done in pursuance of this Act or any rule made thereunder.
2
[31A. Special provision with respect to payment of bonus linked with
production or productivity. – Notwithstanding anything contained in this
Act,--
(i) where an agreement or a settlement has been entered into by the
employees with their employer before the commencement of the
Payment of Bonus (Amendment) Act, 1976 (23 of 1976), or
(ii) where the employees enter into any agreement or settlement
with their employer after such commencement, for payment of an
annual bonus linked with production or productivity in lieu of
bonus based on profits payable under this Act, then, such
employees shall be entitled to receive bonus due to them under
such agreement or settlement, as the case may be:
1
[Provided that any such agreement or settlement whereby the
employees relinquish their right to receive the minimum bonus under
section 10 shall be null and void in so far as it purports to deprive them of
such right:]
2
[Provided further that] such employees shall not be entitled to be
paid such bonus in excess of twenty per cent. of the salary or wage
earned by them during the relevant accounting year.

32. Act not to apply to certain classes of employees. – Nothing in this

Act shall apply to --
(i) 3[***] employees employed by any insurer carrying on general
insurance business and the employees employed by the Life
Insurance Corporation of India;
1
Ins. by Act 66 of 1980, sec. 16 (w.r.e.f. 21.8.1980)
2
Ins. by Act 23 of 1976, sec. 19 (w.r.e.f. 25.9.1975)
1
Ins. by Act 66 of 1980, sec. 17 (w.r.e.f. 21.8.1980)
2
Subs. by Act 66 of 1980, sec. 17, for “Provided that” (w.r.e.f. 21.8.19800
3
the words “employees employed by any insurer carrying on general insurance business and the”
omitted by Act 62 of 1968, sec. 41.
 (ii) seamen as defined in clause (42) of section 3 of the Merchant
Shipping Act, 1958 ( 44 of 1958);
(iii) employees registered or listed under any scheme made under
the Dock Workers (Regulation of Employment) Act, 1948 (9 of
1948), and employed by registered or listed employers;
(iv) employees employed by an establishment engaged in any
industry carried on by or under the authority of any department
of the Central Government or a State Government or a Local
authority;
(v) employees employed by --
(a) the Indian Red Cross Society or any other institution of a like
nature (including its branches);
(b) universities and other educational institutions;
(c) institutions (including hospitals, chambers of commerce and
social welfare institutions) established not for purposes of
profit;
(vi) employees employed through contractor on building operations;
4
[***]
(viii) employees employed by the Reserve Bank of India;
(ix) employees employed by --
(a) the Industrial Finance Corporation of India;
(b) any Financial Corporation established under section 3, or
any Joint Financial Corporation established under section
3A, of the State Financial Corporations Act, 1951 (63 of 1951);
(c) the Deposit Insurance Corporation;
5
[(d) the National Bank for Agriculture and Rural
Development;]
(e) the Unit Trust of India;
(f) the Industrial Development Bank of India;

1
[(fa) the Small Industries Development Bank of India established
under section 3 of the Small Industries Development Bank of
India Act, 1989;]
2
[(ff) the National Housing Bank;]
(g) any other financial institution 3[(other than a banking
company)], being an establishment in public sector, which
the Central Government may, by notification in the Official
Gazette, specify, having regard to --
(i) its capital structure;
4
Clause (vii) omitted by Act 66 of 1980, sec, 18 (w.r.e.f. 21.8.1982)
5
Subs. by Act of 1981, sec. 61 and Sch.II, for sub-clause (d) (w.r.e.f. 12.7.1982)
1
Ins. by Act 39 of 19879, sec. 53 and Sch.II.
2
Omitted by Act 66 of 1980, sec. 18 (w.r.e.f. 21.8.1980) and ins. by Act 53 of 1987, sec. 56 and
Sch. II (w.e..f 9.7.1988).
3
Ins. by Act 66 of 1980, sec. 18 (w.r.e.f. 21.8.1980)
 (ii) its objectives and the nature of its activities;
(iii) the nature and extent of financial assistance or any
concession given to it by the Government; and
(iv) any other relevant factor;
4
[***]
(xi) employees employed by inland water transport establishment
operating on routes passing through any other country.

33. Act to apply to certain pending disputes regarding payment of

bonus.-
[Rep. By the Payment of Bonus (Amendment) Act, 1976 (23 of 1976), sec.
21 (w.r.e.f. 25-9-1975).]
5
[34. Effect of laws and agreements inconsistent with the Act. – Subject to
the provisions of section 31A, the provisions of this Act shall have effect
notwithstanding anything inconsistent contained in any other law for the
time being in force or in the terms of any award, agreement, settlement or
contract of service.]

35. Saving. – Nothing, contained in this Act shall be deemed to affect the
provisions of the Coal Mines, Provident Fund and Bonus Schemes Act,
1948 (48 for 1948), or of any scheme made thereunder.

36 Power of exemption. – If the appropriate Government, having regard

to the financial position and other relevant circumstances of any
establishment or class of establishment, is of opinion that it will not be in
public interest to apply all or any of the provisions of this Act thereto, it
may, by notification in the Official Gazette, exempt for such period as
maybe specified therein and subject to such conditions as it may think fit
to impose, such establishment or class of establishment from all or any
of the provisions of this Act.

37. Power to remove difficulties. – [Rep. by the Payment of Bonus

(Amendment) Act, 1976 (23 of 1976), sec. 23 (w.r.e.f. 25-9-1975).]

38. Power to make rules. – (1) The Central Government may make rule
for the purpose of carrying into effect the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for --
(a) the authority for granting permission under the proviso to sub-
clause (iii) of clause (1) of section 2;
(b) the preparation of registers, records and other documents and
the form and manner in which such registers, records and
documents may be maintained under section 26;

4
Clause (x) omitted by Act 23 of 1976, sec. 20 (w.r.e.f 25.9.1975)
5
Subs. by Act 23 of 1976, sec. 22, for section 34 (w.r.e.f. 25.9.1975)
 (c) the powers which may be exercised by an inspector under
clause (e) of sub-section (2) of section 27;
(d) any other matter which is to be, or maybe prescribed.
(3) Every rule made under this section shall be laid as soon as may be
after it is made, before each House of Parliament while it is in session for
a total period of thirty days, which may be comprised in one session [or
in two or more successive sessions], and if before the expiry of the
session [immediately following the session or the successive sessions
aforesaid], both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the
case may be; so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done under that
rule.
39. Application of certain law not barred. –Save as otherwise expressly
provided, the provisions of this Act shall be in addition to and not in
derogation of the Industrial Disputes Act, 1947 (14 of 1947), or any
corresponding law relating to investigation and settlement of industrial
disputes in force in a State.
40. Repeal and saving. – (1) The Payment of Bonus Ordinance, 1965 (3 of
1965), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken
under the said Ordinance shall be deemed to have been done or taken
under this Act as if this Act had commenced on the 29th May, 1965.
Module- III

WORKMEN'S COMPENSATION ACT 1923

THE WORKMEN'S COMPENSATION ACT, 1923

ACT NO. 8 OF 1923 1*

[5th March, 1923.]

An Act to provide for the payment by certain classes of employers to their workmen
of compensation for injury by accident. WHEREAS it is expedient to provide for
the payment by certain classes of employers to their workmen of compensation for
injury by accident; It is hereby enacted as follows:-- CHAP PRELIMINARY
CHAPTER I PRELIMINARY

Short title, extent and commencement.

1. Short title, extent and commencement.- (1) This Act may be called the Workmen's
Compensation Act 1923.
2*[(2) It extends to the whole of India 3***.]

(3) It shall come into force on the first day of July, 1924.

Definitions.

2. Definitions.- (1) In this Act, unless there is anything repugnant in the subject or
context,-- 4* * * * * (b) "Commissioner" means a Commissioner for Workmen's
Compensation appointed under section 20; (c) "compensation" means
compensation as provided for by this Act; 5*[(d) "dependant" means any of the
following relatives of a deceased workman, namely:-- (i) a widow, a minor legitimate
son, and unmarried legitimate daughter, or a widowed mother; and (ii) if wholly
dependent on the earnings of the workman at the time of his death, a son or a
daughter who has attained the age of 18 years and who is infirm;
---------------------------------------------------------------------- 1. This Act has been
extended to Goa, Daman and Diu by Reg. 12 of 1962, s. 3 and Sch.; Dadra and
Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. I; Pondicherry by Reg. 7 of 1963, s. 3
and Sch. I and Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s. 3 and
Sch. This Act has been modified in its application to apprentices under the
Apprentices Act, 1961 (52 of 1961) by s. 16 and Sch. to that Act.

2. Subs. by the A. O. 1950, for sub-section (2). 3. The words "except the State of
Jammu and Kashmir" omitted by Act 51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971). 4.
Cl. (a) omitted by Act 8 of 1959, s. 2 (w.e.f. 1-6-1959). 5. Subs. by s. 2, ibid., for the
former clause (w.e.f. 1-6-1959). 14 (iii) if wholly or in part dependent on the earnings
of the workman at the time of his death, (a) a widower, (b) a parent other than a
widowed mother, (c) a minor illegitimate son, an unmarried illegitimate daughter or
a daughter legitimate or illegitimate if married and a minor or if widowed and a
minor, (d) a minor brother or a unmarried sister or a widowed sister if a minor, (e)
a widowed daughter-in-law, (f) a minor child of a pre-deceased son, (g) a minor
child of a pre-deceased daughter where no parent of the child is alive, or (h) a
paternal grandparent if no parent of the workman is alive;] (e) "employer" includes
any body of persons whether incorporated or not and any managing agent of an
employer and the legal representative of a deceased employer, and, when the
services of workman are temporarily lent or let on hire to another person by the
person with whom the workman has entered into a contract of service or
apprenticeship means such other person while the workman is working for him; (f)
"managing agent" means any person appointed or acting as the representative of
another person for the purpose of carrying on such other person's trade or business,
but does not include an individual manager subordinate to an employer1*; 2*[(ff)
"minor" means a person who has not attained the age of 18 years;] (g) "partial
disablement" means, where the disablement is of a temporarp nature, such
disablement as reduces the earning capacity of a workman in any employment in
which he was engaged at the time of the accident resulting in
---------------------------------------------------------------------- 1. In the application of the
Act to Bengal, a new clause (ff) has been ins. here by the Workmen's Compensation
(Bengal Amendment) Act, 1942 (Ben. 6 of 1942), s. 3. 2. Ins. by Act 8 of 1959, s. 2
(w.e.f. 1-6-1959). 15 the disablement, and, where the disablement is of a permanent
nature, such disablement as reduces his earning capacity in every employment
which he was capable of undertaking at that time: provided that every injury
specified 1*[in Part II of Schedule I] shall be deemed to result in permanent partial
disablement; (h) "prescribed" means prescribed by rules made under this Act; (i)
"qualified medical practitioner" means any person registered 2*** under any
3*[Central Act, Provincial Act or an Act of the Legislature of a 4*[State]] providing
for the maintenance of a register of medical practitioners, or, in any area where no
such last- mentioned Act is in force, any person declared by the State Government,
by notification in the Official Gazette, to be a qualified medical practitioner for the
purposes of this Act; 5* * * * * (k) "seaman" means any person forming part of the
crew of any 6*** ship, but does not include the master of 7*[the] ship; (l) "total
disablement" 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 the accident resulting in such disablement: 8*[Provided
that permanent total disablement shall be deemed to result from every injury
specified in Part I of Schedule I or from any combination of injuries specified in
Part II thereof where the aggregate percentage of the loss of earning capacity, as
specified in the said Part II against those injuries, amounts to one hundred per cent
or more;] (m) "wages" includes any privilege or benefit which is capable of being
estimated in money, other than a travelling allowance
---------------------------------------------------------------------- 1. Subs. by Act 64 of 1962, s.
2, for "in Schedule I" (w.e.f. 1-2- 1963). 2. The words "under the Medical Act, 1858,
or any Act amending the same, or" omitted by Act 8 of 1959, s. 2 (w.e.f. 1-6-1959). 3.
Subs. by the A. O. 1950, for "Act of the Central Legislature or of any Legislature in
a Province of India". 4. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for
"Part A State or Part B State". 5. Cl. (j) rep. by Act 15 of 1933, s. 2. 6. The word
"registered" omitted by s. 2, ibid. 7. Subs. by s. 2, ibid., for "any such". 8. Subs. by
Act 64 of 1962, s. 2, for the proviso (w.e.f. 1-2-1963). 16 or the value of any travelling
concession or a contribution paid by the employer of a workman towards any
pension or provident fund or a sum paid to a workman to cover any special
expenses entailed on him by the nature of his employment; (n) "workman" means
any person (other than a person whose employment is of a casual nature and who is
employed otherwise than for the purposes of the employer's trade or business) who
is-- (i) a railway servant as defined in section 3 of the Indian Railways Act, 1890 (9
of 1890), not permanently employed in any administrative, district or sub-divisional
office of a railway and not employed in any such capacity as is specified in Schedule
II, or (ii) employed 1*** 2*** in any such capacity as is specified in Schedule II.
whether the contract of employment was made before or after the passing of this
Act and whether such contract is expressed or implied, oral or in writing; but does
not include any person working in the capacity of a member of 3*[the Armed Forces
of the Union] 4***; and any reference to a workman who has been injured shall,
where the workman is dead, include a reference to his dependants or any of them.
(2) The exercise and performance of the powers and duties of a local authority or of
any department 5*[acting on behalf of the Government] shall, for the purposes of
this Act, unless a contrary intention appears, be deemed to be the trade or business
of such authority or department.

6*[(3) The 7*[State Government], after giving, by notification 8* in the Official

Gazette, not less than three months' notice of its intention
---------------------------------------------------------------------- 1. The word " either by way
of manual labour or" rep. by Act 15 of 1933, s. 2. 2. Omitted by Act 22 of 1984, s. 2
(w.e.f 1-7-1984). 3. Subs. by the A. O. 1950, for "His Majesty's naval, military or air
forces". 4. The words "or of the Royal Indian Marine Service" rep. by the A. O.
1937. 5. Subs., ibid., for "of the Government". 6. Subs. by Act 15 of 1933, s. 2, for
the original sub-section. 7. Subs. by the A. O. 1937, for "G. G. in C". 8. For such a
notification, see Gazette of India, 1935. Pt. I. p. 745. 17 so to do, may, by a like
notification, add to Schedule II any class of persons employed in any occupation
which it is satisfied is a hazardous occupation, and the provisions of this Act shall
thereupon apply 1*[within the State] to such classes of persons: Provided that in
making such addition the 2*[State Government] may direct that the provisions of
this Act shall apply to such classes of persons in respect of specified injuries only.]
CHAP WORKMEN'S COMPENSATION CHAPTER II WORKMEN'S
COMPENSATION

Employer's liability for compensation.

3. Employer's liability for compensation.- (1) If personal injury is caused to a

workman by accident arising out of and in the course of his employment, his
employer shall be liable to pay compensation in accordance with the provisions of
this Chapter: Provided that the employer shall not be so liable-- (a) in respect of any
injury which does not result in the total or partial disablement of the workman for a
period exceeding 3*[three] days; (b) in respect of any 4*[injury, not resulting in
death, caused by] an accident which is directly attributable to-- (i) the workman
having been at the time thereof under the influence of drink or drugs, or (ii) the
wilful disobedience of the workman to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of workmen, or (iii) the
wilful removal or disregard by the workman of any safety guard or other device
which he knew to have been provided for the purpose of securing the safety of
workmen. 5*** 5* * * * *

6*[(2) If a workman employed in any employment specified in Part A of Schedule

III contracts any disease specified therein as an occupational disease peculiar to that
employment, or if a workman, whilst in the service of an employer in whose service
he has been ---------------------------------------------------------------------- 1. Ins. by the A.
O. 1937. 2. Subs., ibid., for "G. G. in C.". 3. Subs. by Act 8 of 1959, s. 3, for "seven"
(w.e.f. 1-6-1959). 4. Subs. by Act 15 of 1933, s. 3, for "injury to a workman resulting
from". 5. The word "or" and cl. (c) rep. by Act 5 of 1929, s. 2.
6. Subs. by Act 8 of 1959, s. 3, for sub-sections (2) and (3) (w.e.f. 1-6-1959). 18
employed for a continuous period of not less than six months (which period shall not
include a period of service under any other employer in the same kind of
employment) in any employment specified in Part B of Schedule III, contracts any
disease specified therein as an occupational disease peculiar to that employment, or
if a workman whilst in the service of one or more employers in any employment
specified in Part C of Schedule III for such continuous period as the Central
Government may specify in respect of each such employment, contracts any disease
specified therein as an occupational disease peculiar to that employment, the
contracting of the disease shall be deemed to be an injury by accident within the
meaning of this section and, unless the contrary is proved, the accident shall be
deemed to have arisen out of, and in the course of, the employment: 1*[Provided
that if it is proved,-- (a) that a workman whilst in the service of one or more
employers in any employment specified in Part C of Schedule III has contracted a
disease specified therein as an occupational disease peculiar to that employment
during a continuous period which is less than the period specified under this sub-
section for that employment, and (b) that the disease has arisen out of and in the
course of the employment; the contracting of such disease shall be deemed to be an
injury by accident within the meaning of this section: Provided further that if it is
proved that a workman who having served under any employer in any employment
specified in Part B of Schedule III or who having served under one or more
employers in any employment specified in Part C of that Schedule, for a continuous
period specified under this sub-section for that employment and he has after the
cessation of such service contracted any disease specified in the said Part B or the
said Part C, as the case may be, as an occupational disease peculiar to the
employment and that such disease arose out of the employment, the contracting of
the disease shall be deemed to be an injury by accident within the meaning of this
section.] 3*[(2A) If a workman employed in any employment specified in Part C of
Schedule III contracts any occupational disease peculiar to that employment, the
contracting whereof is deemed to be an injury by accident within the meaning of
this section, and such employment
---------------------------------------------------------------------- 1. Ins. by Act 64 of 1962, s. 3
(w.e.f. 1-2-1963). 2. Subs. by s. 3, ibid., for sub-section (2A) (w.e.f. 1-2-1963). 19 was
under more than one employer, all such employers shall be liable for the payment of
the compensation in such proportion as the Commissioner may, in the
circumstances, deem just.]

(3) The State Government in the case of employments specified in Part A and Part B
of Schedule III, and the Central Government in the case of employments specified in
Part C of that Schedule, after giving, by notification in the Official Gazette, not less
than three months' notice of its intention so to do, may, by a like notification, add
any description of employment to the employments specified in Schedule III, and
shall specify in the case of employments so added the diseases which shall be deemed
for the purposes of this section to be occupational diseases peculiar to those
employments respectively,
and thereupon the provisions of sub-section (2) shall apply 1*** as if such diseases
had been declared by this Act to be occupational diseases peculiar to those
employments.]

(4) Save as provided by 2*[sub-sections (2), (2A)] and (3), no compensation shall be
payable to a workman in respect of any disease unless the disease is 3*** directly
attributable to a specific injury by accident arising out of and in the course of his
employment.

(5) Nothing herein contained shall be deemed to confer any right to compensation
on a workman in respect of any injury if he has instituted in a Civil Court a suit for
damages in respect of the injury against the employer or any other person; and no
suit for damages shall be maintainable by a workman in any Court of law in respect
of any injury-- (a) if he has instituted a claim to compensation in respect of the
injury before a Commissioner; or (b) if an agreement has been come to between the
workman and his employer providing for the payment of compensation in respect of
the injury in accordance with the provisions of this Act.

Amount of compensation.

4*[4. Amount of compensation.- (1) Subject to the provisions of this Act, the amount
of compensation shall be as follows, namely:-- (a) where death results an amount
equal to forty per from the injury cent. of the monthly wages of the deceased
workman multiplied by the relevant factor; or an amount of twenty thousand
rupees, whichever is more; (b) Where permanent total an amount equal to fifty per
disablement results from cent. of the monthly wages the injury of the injured
workman multiplied by the relevant factor; or .0 an amount of twenty-four
thousand rupees, whichever is more; Explanation I.--For the purposes of clause (a)
and clause (b), "relevant factor", in relation to a workman means the factor
specified in the second column of Schedule IV against the entry in the first column
of that Schedule specifying the number of years which are the same as the
completed years of the age of the workman on his last birthday immediately
preceding the date on which the compensation fell due; Explanation II.--Where the
monthly wages of a workman exceed one thousand rupees, his monthly wages for
the purposes of clause (a) and clause (b) shall be deemed to be one thousand rupees
only, (c) Where parmanent partial (i) in the case of an injury disablement results
from specified in Part II of Schedule the injury I, such percentage of the
compensation which would have been payable in the case of permanent total
disablement as is specified therein as being the percentage of the loss of earning
capacity caused by that injury, and (ii) in the case of an injury not pecified in
Schedule I, such percentage of the compensation payable in the case of permanent
total disablement as is propor- tionate to the loss of earning capacity (as assessed by
the qualified medical practitioner) permanently caused by the inj- ury; Explanation
I.--Where more injuries than one are caused by the same accident, the amount of
compensation payable under this head shall be aggregated but not so in any case as
to exceed the amount which would have been payable if permanent total
disablement had resulted from the injuries; Explanation II.--In assessing the loss of
earning capacity for the purposes of sub-clause (ii), the qualified medical
practitioner shall have due regard to the percentages of loss of earning capacity in
relation to different injuries specified in Schedule I; (d) Where temporary disable- a
half-monthly payment of the ment, whether total or sum equivalent to twenty-five
partial result from the per cent. of monthly wages of injury the workman, to be paid
in accor- dance with the provisions of sub- section 2.

(2) The half-monthly payment referred to in clause (d) of sub-

section (1) shall be payable on the sixteenth day-- (i) from the date of disablement
where such disablement lasts for a period of twenty-eight days or more, or (ii) after
the expiry of a waiting period of three days from the date of disablement where such
disablement lasts for a period of less than twenty-eight days; and thereafter half-
monthly during the disablement or during a period of five years, whichever period
is shorter: Provided that-- (a) there shall be deducted from any lump sum or half-
monthly payments to which the workman is entitled the amount of any payment or
allowance which the workman has received from the employer by way of
compensation during the period of disablement prior to the receipt of such lump
sum or of the first half- monthly payment, as the case may be; and (b) no half-
monthly payment shall in any case exceed the amount, if any, by which half the
amount of the monthly wages of the workman before the accident exceeds half the
amount of such wages which he is earning after the accident. Explanation.--Any
payment or allowance which the workman has received from the employer towards
his medical treatment shall not be deemed to be a payment or allowance received by
him by way of compensation within the meaning of clause (a) of the proviso.

(3) On the ceasing of the disablement before the date on which any half-monthly
payment falls due, there shall be payable in respect of that half-month a sum
proportionate to the duration of the disablement in that half-month.]
---------------------------------------------------------------------- 1. Certain words omitted by
Act 51 of 1970, s. 2 and Sch. (w.e.f. 1- 9-1971).

2. Subs. by Act 8 of 1959, s. 3, for "sub-sections (2)" (w.e.f. 1-6- 1959). 3. The words
"solely and" rep. by Act 15 of 1933, s. 3. 4. Subs. by Act 22 of 1984, s. 3 (w.e.f. 1-7-
1984). 21 4A. Compensation to be paid when due and penalty for default. 1*[4A.
Compensation to be paid when due and penalty for default.-

(1) Compensation under section 4 shall be paid as soon as it falls due.

(2) In cases where the employer does not accept the liability for compensation to the
extent claimed, he shall be bound to make provisional payment based on the extent
of liability which he accepts, and, such payment shall be deposited with the
Commissioner or made to the workman, as the case may be, without prejudice to
the right of the workman to make any further claim.
(3) Where any employer is in default in paying the compensation due under this Act
within one month from the date it fell due, the Commissioner may direct that, in
addition to the amount of the arrears, simple interest at the rate of six per cent. per
annum on the amount due together with, if in the opinion of the Commissioner there
is no justification for the delay, a further sum not exceeding fifty per cent. of such
amount, shall be recovered from the employer by way of penalty.]

Method of calculating wages. 2*5. Method of calculating wages.- 3*[In this Act and
for the purposes thereof the expression "monthly wages" means the amount of
wages deemed to be payable for a month's service (whether the wages are payable
by the month or by whatever other period or at piece rates), and calculated] as
follows, namely:-- (a) where the workman has, during a continuous period of not
less than twelve months immediately preceding the accident, been in the service of
the employer who is liable to pay compensation, the monthly wages of the workman
shall be one-twelfth of the total wages which have fallen due for payment to him by
the employer in the last twelve months of that period; 4*[(b) where the whole of the
continuous period of service immediately preceding the accident during which the
workman was in the service of the employer who is liable to pay the compensation
was less than one month, the monthly wages of the workman shall be 5*** the
average monthly amount which, during the twelve
---------------------------------------------------------------------- 1. Ins. by Act 8 of 1959, s. 5
(w.e.f. 1-6-1959).

2. The original s. 5 renumbered as sub-section (1) of that section

by Act 5 of 1929, s. 3. The brackets and figure "(1)" rep. by Act 9 of 1938, s. 4. 3.
Subs. by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934), for "For the purposes of this Act the
monthly wages of a workman shall be calaucated" the words in italics subs. by Act
15 of 1933, s. 5, for "section 4". 4. Ins. by Act 15 of 1933, s. 5. 5. The words "deemed
to be" rep. by Act 13 of 1939, s. 2 (w.e.f. 30- 6-1934). 22 months immediately
preceding the accident, was being earned by a workman employed on the same
work by the same employer, or, if there was no workman so employed, by a
workman employed on similar work in the same locality]; 1*[(c)] 2*[in other cases
[including cases in which it is not possible for want of necessary information to
calculate the monthly wages under clause (b)]], the monthly wages shall be thirty
times the total wages earned in respect of the last continuous period of service
immediately preceding the accident from the employer who is liable to pay
compensation, divided by the number of days comprising such period. 3* * * * *
Explanation.--A period of service shall, for the purposes of 4*[this 5*[section]] be
deemed to be continuous which has not been interrupted by a period of absence
from work exceeding fourteen days. 6* * * * *

Review.

6. Review.- (1) Any half-monthly payment payable under this Act, either under an
agreement between the parties or under the order of a Commissioner, may be
reviewed by the Commissioner, on the application either of the employer or of the
workman accompanied by the certificate of a qualified medical practitioner that
there has been a change in the condition of the workman or, subject to rules made
under this Act, on application made without such certificate.

(2) Any half-monthly payment may, on review under this section, subject to the
provisions of this Act, be continued, increased, decreased or ended, or if the accident
is found to have resulted in permanent disablement, be converted to the lump sum
to which the workman is entitled less any amount which he has already received by
way of half-monthly payments.

Commutation of half-monthly payments. 7. Commutation of half-monthly

payments.- Any right to receive half-monthly payments may, by agreement between
the parties or, if the parties cannot agree and the payments have been continued for
not less than six months, on the application of either party to the Commissioner be
redeemed by the ---------------------------------------------------------------------- 1. The
original cl. (b) relettered (c) by Act 15 of 1933, s. 5. 2. Subs. by Act 8 of 1959, s. 6, for
"in other cases" (w.e.f. 1-6- 1959). 3. The proviso rep. by Act 15 of 1933, s. 5. 4.
Subs. by Act 5 of 1929, s. 3 for "this section". 5. Subs. by Act 9 of 1938, s. 4, for
"sub-section".

6. Sub-section (2) ins. by Act 5 of 1929, s. 3, rep. by Act 15 of 1933, s. 5. 23 payment

of a lump sum of such amount as may be agreed to by the parties or determined by
the Commissioner, as the case may be.

Distribution of compensation.

8. Distribution of compensation.- 1*[(1) No payment of compensation in respect of a

workman whose injury has resulted in death, and no payment of a lump sum as
compensation to a woman or a person under a legal disability, shall be made
otherwise than by deposit with the Commissioner, and no such payment made
directly by an employer shall be deemed to be a payment of compensation:
2*[Provided that, in the case of a deceased workman, an employer may make to any
dependant advances on account of compensation not exceeding an aggregate of one
hundred rupees, and so much of such aggregate as does not exceed the
compensation payable to that dependant shall be deducted by the Commissioner
from such compensation and repaid to the employer.]

(2) Any other sum amounting to not less than ten rupees which is payable as
compensation may be deposited with the Commissioner on behalf of the person
entitled thereto.

(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any
compensation deposited with him.]
(4) On the deposit of any money under sub-section (1) 3*[as compensation in respect
of a deceased workman] the Commissioner 4*[shall deduct] therefrom the actual
cost of the workman's funeral expenses, to an amount not exceeding 5*[fifty rupees]
and pay the same to the person by whom such expenses were incurred, and shall, if
he thinks necessary, cause notice to be published or to be served on each dependant
in such manner as he thinks fit, calling upon the dependants to appear before him
on such date as he may fix for determining the distribution of the compensation. If
the Commissioner is satisfied after any inquiry which he may deem necessary, that
no dependant exists, he shall repay the balance of the money to the employer by
whom it was paid. The Commissioner shall, on application by the employer, furnish
a statement showing in detail all disbursements made.

6*[(5) Compensation deposited in respect of a deceased workman

shall, subject to any deduction made under sub-section (4), be

----------------------------------------------------------------------

1. Subs. by Act 5 of 1929, s. 4, for original sub-sections (1) to

(3). 2. Subs. by Act 15 of 1933, s. 6, for the original proviso. 3. Ins. by Act 5 of 1929,
s. 4. 4. Subs. by Act 15 of 1933, s. 6, for "may deduct". 5. Subs. by Act 8 of 1959, s. 7,
for "twenty-five rupees" (w.e.f. 1- 6-1959).

6. Sub-sections (5) to (7) subs. by Act 5 of 1929, s. 4, for the

original sub-section (5). 24 apportioned among the dependants of the deceased

workman or any of them in such proportion as the Commissioner thinks fit, or may,
in the discretion of the Commissioner, be allotted to any one dependant.

(6) Where any compensation deposited with the Commissioner is payable to any
person, the Commissioner shall, if the person to whom the compensation is payable
is not a woman or a person under a legal disability, and may, in other cases, pay the
money to the person entitled thereto.

(7) Where any lump sum deposited with the Commissioner is payable to a woman or
a person under a legal disability, such sum may be invested, applied or otherwise
dealt with for the benefit of the woman, or of such person during his disability, in
such manner as the Commissioner may direct; and where a half-monthly payment
is payable to any person under a legal disability, the Commissioner may, of his own
motion or on an application made to him in this behalf, order that the payment be
made during the disability to any dependant of the workman or to any other person,
whom the Commissioner thinks best fitted to provide for the welfare of the
workman.]

1*[(8)] Where, on application made to him in this behalf or otherwise, the

Commissioner is satisfied that, on account of neglect of children on the part of a
parent or on account of the variation of the circumstances of any dependant or for
any other sufficient cause, an order of the Commissioner as to the distribution of
any sum paid as compensation or as to the manner in which any sum payable to any
such dependant is to be invested, applied or otherwise dealt with, ought to be varied,
the Commissioner may make such orders for the variation of the former order as he
thinks just in the circumstances of the case: Provided that no such order prejudicial
to any person shall be made unless such person has been given an opportunity of
showing cause why the order should not be made, or shall be made in any case in
which it would involve the repayment by a dependant of any sum already paid to
him.

2*[(9) Where the Commissioner varies any order under sub-section

(8) by reason of the fact that payment of compensation to any person has been
obtained by fraud, impersonation or other improper means, any amount so paid to
or on behalf of such person may be recovered in the manner hereinafter provided in
section 31.] ----------------------------------------------------------------------

1. The original sub-section (6) renumbered (8) by Act 5 of 1929, s. 4. 2. Ins. by s. 4,

ibid. 25

Compensation not to be assigned, attached or charged. 9. Compensation not to be

assigned, attached or charged.- Save as provided by this Act, no lump sum or half-
monthly payment payable under this Act shall in any way be capable of being
assigned or charged or be liable to attachment or pass to any person other than the
workman by operation of law, nor shall any claim be set off against the same.

Notice and claim.

10. Notice and claim.- (1) 1*[No claim for compensation shall be entertained by a
Commissioner unless notice of the accident has been given in the manner
hereinafter provided as soon as practicable after the happening thereof and unless
the claim is preferred before him within 2*[two years] of the occurrence of the
accident or, in case of death, within 2*[two years] from the date of death:] Provided
that, where the accident is the contracting of a disease

in respect of which the provisions of sub-section (2) of section 3 are applicable, the
accident shall be deemed to have occurred on the first of the days during which the
workman was continuously absent from work in consequence of the disablement
caused by the disease: 3*[Provided further that in case of partial disablement due to
the contracting of any such disease and which does not force the workman to absent
himself from work, the period of two years shall be counted from the day the
workman gives notice of the disablement to his employer: Provided further that if a
workman who, having been employed in
an employment for a continuous period, specified under sub-section (2) of section 3
in respect of that employment, ceases to be so employed and develops symptoms of
an occupational disease peculiar to that employment within two years of the
cessation of employment, the accident shall be deemed to have occurred on the day
on which the symptoms were first detected:] 4*[Provided further that the want of or
any defect or irregularity in a notice shall not be a bar to the 5*[entertainment of a
claim]-- (a) if the claim is 6*[preferred] in respect of the death of a workman
resulting from an accident which occurred on the premises of the employer, or at
any place where the workman at the time of the accident was working under
---------------------------------------------------------------------- 1. Subs. by Act 9 of 1938, s.
5, for the original words. 2. Subs. by Act 8 of 1959, s. 8, for "one year" (w.e.f. 1-6-
1959). 3. Ins. by Act 64 of 1962, s. 5 (w.e.f. 1-2-1963). 4. Ins. by Act 15 of 1933, s. 7. 5.
Subs. by Act 9 of 1938, s. 5, for "maintenance of proceedings". 6. Subs. by s. 5, ibid.,
for "made". 26 the control of the employer or of any person employed by him, and
the workman died on such premises or at such place, or on any premises belonging
to the employer, or died without having left the vicinity of the premises or place
where the accident occurred, or (b) if the employer 1*[or any one of several
employers or any person responsible to the employer for the management of any
branch of the trade or business in which the injured workman was employed] had
knowledge of the accident from any other source at or about the time when it
occurred: Provided further, that the Commissioner may 2*[entertain] and decide
any claim to compensation in any case notwithstanding that the notice has not been
given, or the claim has not been 3*[preferred], in due time as provided in this sub-
section, if he is satisfied that the failure so to give the notice or 4*[prefer] the claim,
as the case may be, was due to sufficient cause.

(2) Every such notice shall give the name and address of the person injured and
shall state in ordinary language the cause of the injury and the date on which the
accident happened, and shall be served on the employer or upon 5*[any one of]
several employers, or upon any person 6*** responsible to the employer for the
management of any branch of the trade or business in which the injured workman
was employed.

7*[(3) The State Government may require that any prescribed class of employers
shall maintain at their premises at which workmen are employed a notice-book, in
the prescribed form, which shall be readily accessible at all reasonable times to any
injured workman employed on the premises and to any person acting bona fide on
his behalf.

(4) A notice under this section may be served by delivering it at, or sending it by
registered post addressed to, the residence or any office or place of business of the
person on whom it is to be served, or, where a notice-book is maintained, by entry in
the notice- book.] ---------------------------------------------------------------------- 1. Ins. by
Act 9 of 1938, s. 5. 2. Subs. by s 5, ibid., for "admit". 3. Subs. by s. 5, ibid., for
"instituted". 4. Subs. by s. 5, ibid., for "institute". 5. Subs. by Act 7 of 1924, s. 2 and
Sch. I, for "any one or". 6. The word "directly" rep. by Act 9 of 1938, s. 5.
7. Subs. by Act 15 of 1933, s. 7, for the original sub-section (3). 26A 10A. Power to
require from employers statements regarding fatal accidents. 1*[10A. Power to
require from employers statements regarding

fatal accidents.- (1) Where a Commissioner receives information from any source
that a workman has died as a result of an accident arising out of and in the course of
his employment, he may send by registered post a notice to the workman's employer
requiring him to submit, within thirty days of the service of the notice, a statement,
in the prescribed form, giving the circumstances attending the death of the
workman, and indicating whether, in the opinion of the employer, he is or is not
liable to deposit compensation on account of the death.

(2) If the employer is of opinion that he is liable to deposit compensation, he shall

make the deposit within thirty days of the service of the notice.
---------------------------------------------------------------------- 1. Ss. 10A and 10B ins. by
Act 15 of 1933, s. 8. 27

(3) If the employer is of opinion that he is not liable to deposit compensation, he

shall in his statement indicate the grounds on which he disclaims liability.

(4) Where the employer has so disclaimed liability, the Commissioner, after such
enquiry as he may think fit, may inform any of the dependants of the deceased
workman, that it is open to the dependants to prefer a claim for compensation, and
may give them such other further information as he may think fit. 10B. Reports of
fatal accidents and serious bodily injuries.

10B. Reports of fatal accidents and serious bodily injuries.- (1) Where, by any law
for the time being in force, notice is required to be given to any authority, by or on
behalf of an employer, of any accident occurring on his premises which results in
death 1*[or serious bodily injury], the person required to give the notice shall,
within seven days of the death 1*[or serious bodily injury], send a report to the
Commissioner giving the circumstances attending the death 1*[or serious bodily
injury]: Provided that where the State Government has so prescribed the person
required to give the notice may instead of sending such report to the Commissioner
send it to the authority to whom he is required to give the notice.
1*[Explanation.--"Serious bodily injury" means an injury which involves, or in all
probability will involve the permanent loss of the use of, or permanent injury to,
any limb, or the permanent loss of or injury to the sight or hearing, or the fracture
of any limb, or the enforced absence of the injured person from work for a period
exceeding twenty days.]

(2) The State Government may, by notification in the Official

Gazette, extend the provisions of sub-section (1) to any class of premises other than
those coming within the scope of that sub-section, and may, by such notification,
specify the persons who shall send the report to the Commissioner.
1*[(3) Nothing in this section shall apply to factories to which the Employees' State
Insurance Act, 1948, (34 of 1948.) applies.]]

Medical examination.

11. Medical examination.- (1) Where a workman has given notice of an accident, he
shall, if the employer, before the expiry of three days from the time at which service
of the notice has been effected, offers to have him examined free of charge by a
qualified medical practitioner, submit himself for such examination, and any
workman who is in receipt of a half-monthly payment under this Act shall, if so
required, submit himself for such examination from time to time:
---------------------------------------------------------------------- 1. Ins. by Act 8 of 1959, s. 9
(w.e.f. 1-6-1959). 28 Provided that a workman shall not be required to submit
himself for examination by a medical practitioner otherwise than in accordance
with rules made under this Act, or at more frequent intervals than may be
prescribed.

(2) If a workman, on being required to do so by the employer

under sub-section (1) or by the Commissioner at any time, refuses to submit himself
for examination by a qualified medical practitioner or in any way obstructs the
same, his right to compensation shall be suspended during the continuance of such
refusal or obstruction unless, in the case of refusal, he was prevented by any
sufficient cause from so submitting himself.

(3) If a workman, before the expiry of the period within which he

is liable under sub-section (1) to be required to submit himself for medical

examination, voluntarily leaves without having been so examined the vicinity of the
place in which he was employed, his right to compensation shall be suspended until
he returns and offers himself for such examination.

(4) Where a workman, whose right to compensation has been

suspended under sub-section (2) or sub-section (3), dies without having submitted
himself for medical examination as required by either of those sub-sections, the
Commissioner may, if he thinks fit, direct the payment of compensation to the
dependants of the deceased workman.

(5) Where under sub-section (2) or sub-section (3) a right to compensation is

suspended, no compensation shall be payable in respect of the period of suspension,
and, if the period of suspension commences before the expiry of the waiting period
referred to in

clause (d) of sub-section (1) of section 4, the waiting period shall be increased by the
period during which the suspension continues.
(6) Where an injured workman has refused to be attended by a qualified medical
practitioner whose services have been offered to him by the employer free of charge
or having accepted such offer has deliberately disregarded the instructions of such
medical practitioner, then, 1*[if it is proved that the workman has not thereafter
been regularly attended by a qualified medical practitioner or having been so
attended has deliberately failed to follow his instructions and that such refusal,
disregard or failure was unreasonable] in the circumstances of the case and that the
injury has been aggravated thereby, the injury and resulting disablement shall be
deemed to be of the same nature and duration as they might reasonably have
---------------------------------------------------------------------- 1. Subs. by Act 9 of 1938, s.
6, for the original words. 29 been expected to be if the workman had been regularly
attended by a qualified medical practitioner 1*[whose instructions he had followed],
and compensation, if any, shall be payable accordingly.

Contracting.

12. Contracting.- (1) Where any person (hereinafter in this section referred to as the
principal) in the course of or for the purposes of his trade or business contracts with
any other person (hereinafter in this section referred to as the contractor) for the
execution by or under the contractor of the whole or any part of any work which is
ordinarily part of the trade or business of the principal, the principal shall be liable
to pay to any workman employed in the execution of the work any compensation
which he would have been liable to pay if that workman had been immediately
employed by him; and where compensation is claimed from the principal, this Act
shall apply as if references to the principal were substituted for references to the
employer except that the amount of compensation shall be calculated with reference
to the wages of the workman under the employer by whom he is immediately
employed.

(2) Where the principal is liable to pay compensation under this section, he shall be
entitled to be indemnified by the contractor, 2*[or any other person from whom the
workman could have recovered compensation and where a contractor who is
himself a principal is liable to pay compensation or to indemnify a principal under
this section he shall be entitled to be indemnified by any person standing to him in
the relation of a contractor from whom the workman could have recovered
compensation,] and all questions as to the right to and the amount of any such
indemnity shall, in default of agreement, be settled by the Commissioner.

(3) Nothing in this section shall be construed as preventing a workman from

recovering compensation from the contractor instead of the principal.

(4) This section shall not apply in any case where the accident occurred elsewhere
than on, in or about the premises on which the principal has undertaken or usually
undertakes, as the case may be, to execute the work or which are otherwise under
his control or management.
Remedies of employer against stranger. 13. Remedies of employer against stranger.-
Where a workman has recovered compensation in respect of any injury caused
under circumstances creating a legal liability of some person other than the person
by whom the compensation was
---------------------------------------------------------------------- 1. Ins. by Act 9 of 1938, s. 6.
2. Ins. by Act 15 of 1933, s. 9. 30 paid to pay damages in respect thereof, the person
by whom the compensation was paid and any person who has been called on to pay
an indemnity under section 12 shall be entitled to be indemnified by the person so
liable to pay damages as aforesaid.

Insolvency of employer.

14. Insolvency of employer.- (1) Where any employer has entered into a contract
with any insurers in respect of any liability under this Act to any workman, then in
the event of the employer becoming insolvent or making a composition or scheme of
arrangement with his creditors or, if the employer is a company, in the event of the
company having commenced to be wound up, the rights of the employer against the
insurers as respects that liability shall, notwithstanding anything in any law for the
time being in force relating to insolvency or the winding up of companies, be
transferred to and vest in the workman, and upon any such transfer the insurers
shall have the same rights and remedies and be subject to the same liabilities as if
they were the employer, so, however, that the insurers shall not be under any
greater liability to the workman than they would have been under to the employer.

(2) If the liability of the insurers to the workman is less than the liability of the
employer to the workman, the workman may prove for the balance in the insolvency
proceedings or liquidation.

(3) Where in any case such as is referred to in sub-section (1) the contract of the
employer with the insurers is void or voidable by reason of non-compliance on the
part of the employer with any terms or conditions of the contract (other than a
stipulation for the payment of premia), the provisions of that sub-section shall apply
as if the contract were not void or voidable, and the insurers shall be entitled to
prove in the insolvency proceedings or liquidation for the amount paid to the
workman: Provided that the provisions of this sub-section shall not apply in any
case in which the workman fails to give notice to the insurers of the happening of
the accident and of any resulting disablement as soon as practicable after he
becomes aware of the institution of the insolvency or liquidation proceedings.

(4) There shall be deemed to be included among the debts which under section 49 of
the Presidency-towns Insolvency Act, 1909 (3 of 1909), or under section 61 of the
Provincial Insolvency Act, 1920 (5 of 1920), or under section 230 of the 1*Indian
Companies Act, 1913 (7 of 1913), are in the distribution of the property of an
insolvent or in the distribution of the assets
---------------------------------------------------------------------- 1. See now the Companies
Act, 1956 (1 of 1956). 31 of a company being wound up to be paid in priority to all
other debts, the amount due in respect of any compensation the liability where for
accrued before the date of the order of adjudication of the insolvent or the date of
the commencement of the winding up, as the case may be, and those Acts shall have
effect accordingly.

(5) Where the compensation is a half-monthly payment, the amount due in respect
thereof shall, for the purposes of this section, be taken to be the amount of the lump
sum for which the half-monthly payment could, if redeemable, be redeemed if
application were made for that purpose under section 7, and a certificate of the
Commissioner as to the amount of such sum shall be conclusive proof thereof.

(6) The provisions of sub-section (4) shall apply in the case of any amount for which
an insurer is entitled to prove under sub-section

(3), but otherwise those provisions shall not apply where the insolvent or the
company being wound up has entered into such a

contract with insurers as is referred to in sub-section (1).

(7) This section shall not apply where a company is wound up voluntarily merely for
the purposes of reconstruction or of amalgamation with another company. 14A.
Compensation to be first charge on assets transferred by employer. 1*[14A.
Compensation to be first charge on assets transferred by employer.-Where an
employer transfers his assets before any amount due in respect of any
compensation, the liability wherefor accrued before the date of the transfer, has
been paid, such amount shall, notwithstanding anything contained in any other law
for the time being in force, be a first charge on that part of the assets so transferred
as consists of immovable property.]

Special provisions relating to masters and seamen. 15. Special provisions relating to
masters and seamen.- This Act shall apply in the case of workmen who are masters
of 2*** ships or seamen subject to the following modifications, namely:--

(1) The notice of the accident and the claim for compensation may, except where the
person injured is the master of the ship, be served on the master of the ship as if he
were the employer, but where the accident happened and the disablement
commenced on board the ship it shall not be necessary for any seaman to give any
notice of the accident.

(2) In the case of the death of a master or seaman, the claim for compensation shall
be made within 3*[one year] after the news of
---------------------------------------------------------------------- 1. Ins. by Act 8 of 1959, s. 10
(w.e.f. 1-6-1959). 2. The word "registered" rep. by Act 15 of 1933, s. 10. 3. Subs. by
Act 8 of 1959, s. 11, for "six months" (w.e.f. 1-6- 1959). 32 the death has been
received by the claimant or, where the ship has been or is deemed to have been lost
with all hands, within eighteen months of the date on which the ship was, or is
deemed to have been, so lost: 1*[Provided that the Commissioner may entertain any
claim to compensation in any case notwithstanding that the claim has not been
preferred in due time as provided in this sub-section, if he is satisfied that the failure
so to prefer the claim was due to sufficient cause.]

(3) Where an injured master or seaman is discharged or left behind in any part of
2*[India or] 3*[in any foreign country] any depositions taken by any Judge or
Magistrate in that part or by any Consular Officer in the foreign country and
transmitted by the person by whom they are taken to the Central Government or
any State Government shall, in any proceedings for enforcing the claim, be
admissible in evidence-- (a) if the deposition is authenticated by the signature of the
Judge, Magistrate or Consular Officer before whom it is made; (b) if the defendant
or the person accused, as the case may be, had an opportunity by himself or his
agent to crossexamine the witness; and (c) if the deposition was made in the course
of a criminal proceeding, on proof that the deposition was made in the presence of
the person accused; and it shall not be necessary in any case to prove the signature
or official character of the person appearing to have signed any such deposition and
a certificate by such person that the defendant or the person accused had an
opportunity of cross-examining the witness and that the deposition if made in a
criminal proceeding was made in the presence of the person accused shall, unless the
contrary is proved, be sufficient evidence that he had that opportunity and that it
was so made. 4* * * * *

4*[(4) No 5*[half-monthly payment] shall be payable in respect of the period during

which the owner of the ship is, under any law
---------------------------------------------------------------------- 1. Added by Act 8 of 1959, s.
11 (w.e.f. 1-6-1959). 2. Ins. by the A. O. 1950. 3. Subs. by Act 22 of 1984, s. 4. (w.e.f.
1-7-1984)

4. The original cl. (4) rep., and the original cl. (5) renumbered

(4) by Act 9 of 1938, s. 7. 5. Subs. by Act 7 of 1924, s. 2 and Sch. I, for "monthly
payment". 33 in force for the time being 1*** relating to merchant shipping, liable
to defray the expenses of maintenance of the injured master or seaman.

2*[(5) No compensation shall be payable under this Act in respect of any injury in
respect of which provision is made for payment of a gratuity, allowance or pension
under the War Pensions and Detention Allowances (Mercantile Marine, etc.)
Scheme, 1939, or the War Pensions and Detention Allowances (Indian Seamen, etc.)
Scheme, 1941, made under the Pensions (Navy, Army, Air Force and Mercantile
Marine) Act, 1939 ( 2 and 3 Geo. 6, c. 83), or under the War Pensions and Detention
Allowances (Indian Seamen) Scheme 1942, made by the Central Government.

(6) Failure to give a notice or make a claim or commence proceedings within the
time required by this Act shall not be a bar to the maintenance of proceedings under
this Act in respect of any personal injury, if-- (a) an application has been made for
payment in respect of that injury under any of the schemes referred to in the
preceding clause, and (b) the State Government certifies that the said application
was made in the reasonable belief that the injury was one in respect of which the
scheme under which the application was made makes provision for payments, and
that the application was rejected or that payments made in pursuance of the
application were discontinued on the ground that the injury was not such an injury,
and (c) the proceedings under this Act are commenced within one month from the
date on which the said certificate of the State Government was furnished to the
person commencing the proceedings.]

Returns as to compensation. 16. Returns as to compensation.- The 3*[State

Government] may, by notification in the Official Gazette, direct that every person
employing workmen, or that any specified class of such persons, shall send at such
time and in such form and to such authority, as may be specified in the notification,
a correct return specifying the number of injuries in respect of which
---------------------------------------------------------------------- 1. The words "in Part A
States and Part C States" omitted by Act 3 of 1951, s. 3, and Sch. 2. Subs. by Act 1
of 1942, s. 2 (w.e.f. 3-9-1939), for the former cl. which had been ins. by Act 42 of
1939, s. 2 with effect from the same date. 3. Subs. by the A. O. 1937 for "G. G. in
C.". 34 compensation has been paid by the employer during the previous year and
the amount of such compensation together with such other particulars as to the
compensation as the 1*[State Government] may direct.

Contracting out. 17. Contracting out.- Any contract or agreement whether made
before or after the commencement of this Act, whereby a workman relinquishes any
right of compensation from the employer for personal injury arising out of or in the
course of the employment, shall be null and void in so far as it purports to remove
or reduce the liability of any person to pay compensation under this Act.

[Repealed.] 18. [Proof of age.]- Rep. by the Workmen's Compensation

(Amendment) Act, 1959 (8 of 1959), s. 12 (w.e.f. 1-6-1959). 18A. Penalties.

2*[18A. Penalties.- (1) Whoever-- (a) fails to maintain a notice-book which he is

required to

maintain under sub-section (3) of section 10, or (b) fails to send to the Commissioner
a statement which he

is required to send under sub-section (1) of section 10A, or (c) fails to send a report
which he is required to send under section 10B, or (d) fails to make a return which
he is required to make under section 16, shall be punishable with fine which may
extend to 3*[five hundred] rupees.

(2) No prosecution under this section shall be instituted except by or with the
previous sanction of a Commissioner, and no Court shall take cognizance of any
offence under this section, unless complaint thereof is made 4*[within six months of
the date on which the alleged commission of the offence came to the knowledge of
the Commissioner].] CHAP COMMISSIONERS CHAPTER III
COMMISSIONERS

Reference to Commissioners.

19. Reference to Commissioners.-(1) If any question arises in any proceedings under

this Act as to the liability of any person to pay compensation (including any
---------------------------------------------------------------------- 1. Subs. by the A. O. 1937
for "G. G. in C.". 2. S. 18A ins. by Act 15 of 1933, s. 11. 3. Subs. by Act 8 of 1959, s.
13, for "one hundred" (w.e.f. 1-6- 1959). 4. Subs. by Act 64 of 1962, s. 6, for certain
words (w.e.f. 1-2- 1963). 35 question as to whether a person injured is or is not a
workman) or as to the amount or duration of compensation (including any question
as to the nature or extent of disablement), the question shall, in default of
agreement, be settled by 1*[a Commissioner].

(2) No Civil Court shall have jurisdiction to settle, decide or deal with any question
which is by or under this Act required to be settled, decided or dealt with by a
Commissioner or to enforce any liability incurred under this Act.

Appointment of Commissioners.

20. Appointment of Commissioners.-(1) The State Government may, by notification

in the Official Gazette, appoint any person to be a Commissioner for Workmen's
Compensation for such 2*** area as may be specified in the notification.

3*[(2) Where more than one Commissioner has been appointed for any 2*** area,
the State Government may, by general or special order, regulate the distribution of
business between them.]

3*[(3)] Any Commissioner may, for the purpose of deciding any matter referred to
him for decision under this Act, choose one or more persons possessing special
knowledge of any matter relevant to the matter under inquiry to assist him in
holding the inquiry.

3*[(4)] Every Commissioner shall be deemed to be a public servant within the

meaning of the Indian Penal Code (45 of 1860)

Venue of procedings and transfer.

21. Venue of procedings and transfer.- (1) Where any matter is under this Act to be
done by or before a Commissioner, the same shall, subject to the provisions of this
Act and to any rules made hereunder, be done by or before 4*[a Commissioner] for
the 2*** area in which the accident took place which resulted in the injury:
Provided that, where the workman is the master of a 5*** ship or a seaman, any
such matter may be done by or before 4*[a Commissioner] for the 2* area in which
the owner or agent of the ship resides or carries on business.

(2) If a Commissioner is satisfied 6*[that any matter arising out of any proceedings
pending before him] can be more conveniently dealt with by any other
Commissioner, whether in the same State
---------------------------------------------------------------------- 1. Subs. by Act 15 of 1933, s.
12, for "the Commissioner". 2. The word "local" omitted by Act 64 of 1962, s. 7
(w.e.f. 1-2- 1963).

3. Sub-section (2) ins., and the original sub-sections (2) and (3)

renumbered (3) and (4) by Act 15 of 1933, s. 13. 4. Subs. by s. 14, ibid., for "the
Commissioner". 5. The word "registered" omitted by s. 14, ibid. 6. Subs. by Act 9 of
1938, s. 9, for "by any party to any proceedings under this Act pending before him
that such matter". 36 or not, he may subject to rules made under this Act, order
such matter to be transferred to such other Commissioner either for report or for
disposal, and, if he does so, shall forthwith transmit to such other Commissioner all
documents relevant for the decision of such matter and, where the matter is
transferred for disposal, shall also transmit in the prescribed manner any money
remaining in his hands or invested by him for the benefit of any party to the
proceedings: 1*[Provided that the Commissioner shall not, where any party to the
proceedings has appeared before him, make any order of transfer relating to the
distribution among dependants of a lump sum without giving such party an
opportunity of being heard:] Provided 1*[further] that no matter other than a
matter relating to the actual payment to a workman or the distribution among
dependants of a lump sum shall be transferred for disposal under this sub-section to
a Commissioner in the same State save with the previous sanction of the State
Government or to a Commissioner in another State save with the previous sanction
of 2*[the State Government of that State], unless all the parties to the proceedings
agree to the transfer.

(3) The commissioner to whom any matter is so transferred shall, subject to rules
made under this Act, inquire thereinto and, if the matter was transferred for report,
return his report thereon or, if the matter was transferred for disposal, continue the
proceedings as if they had originally commenced before him.

(4) On receipt of a report from a Commissioner to whom any matter

has been transferred for report under sub-section (2), the Commissioner by whom it
was referred shall decide the matter referred in conformity with such report.

3*[(5) The State Government may transfer any matter from any Commissioner
appointed by it to any other commissioner appointed by it.]

Form of application.
22. Form of application.-(1) No application for the settlement of any matter by a
Commissioner, 4*[other than an application by a dependant or dependants for
compensation] shall be made unless and until some question has arisen between the
parties in connection therewith which they have been unable to settle by agreement.
---------------------------------------------------------------------- 1. Ins. by Act 9 of 1938, s. 9.
2. Subs. by the A. O. 1937, for "the G. G. in C.". 3. Ins. by Act 15 of 1933, s. 14. 4.
Ins. by s. 15, ibid. 37

(2) 1*[An application to a Commissioner] may be made in such form and shall be
accompanied by such fee, if any, as may be prescribed, and shall contain, in addition
to any particulars which may be prescribed, the following particulars, namely:-- (a)
a concise statement of the circumstances in which the application is made and the
relief or order which the applicant claims; (b) in the case of a claim for
compensation against an employer, the date of service of notice of the accident on
the employer and, if such notice has not been served or has not been served in due
time, the reason for such omission; (c) the names and addresses of the parties; and
(d) 2*[except in the case of an application by dependants for compensation] a
concise statement of the matters on which agreement has and 3*[of] those on which
agreement has not been come to.

(3) If the applicant is illiterate or for any other reason is unable to furnish the
required information in writing, the application shall, if the applicant so desires, be
prepared under the direction of the Commissioner. 22A. Power of Commissioner to
require further deposit in cases of fatalaccident. 4*[22A. Power of Commissioner to
require further deposit in cases

of fatal accident.-(1) Where any sum has been deposited by an employer as

compensation payable in respect of a workman whose injury has resulted in death,
and in the opinion of the Commissioner such sum is insufficient, the Commissioner
may, by notice in writing stating his reasons, call upon the employer to show cause
why he should not make a further deposit within such time as may be stated in the
notice.

(2) If the employer fails to show cause to the satisfaction of the Commissioner, the
Commissioner may make an award determining the total amount payable, and
requiring the employer to deposit the deficiency.]

Powers and procedure of Commissioners. 23. Powers and procedure of

Commissioners.- The Commissioner shall have all the powers of a Civil Court under
the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on
oath (which such Commissioner is hereby empowered
---------------------------------------------------------------------- 1. Subs. by Act 15 of 1933, s.
15, for "where any such question has arisen, the application". 2. Ins. by s. 15, ibid. 3.
Subs. by Act 37 of 1925, s. 2 and Sch. I, for "on". 4. Ins. by Act 15 of 1933, s. 16. 38
to impose) and of enforcing the attendance of witnesses and compelling the
production of documents and material objects, 1*[and the Commissioner shall be
deemed to be a Civil Court for all the purposes of section 195 and of Chapter XXXV
of the Code of Criminal Procedure, 1898 (5 of 1898)].

Appearance of parties. 2*[24. Appearance of parties.- Any appearance, application

or act required to be made or done by any person before or to a Commissioner
(other than an appearance of a party which is required for the purpose of his
examination as a witness) may be made or done on behalf of such person by a legal
practitioner or by an official of an Insurance Company or a registered Trade Union
or by an Inspector appointed under

sub-section (1) of section 8 of the Factories Act, 1948 (63 of 1948)

or under sub-section (1) of section 5 of the Mines Act, 1952 (35 of 1952), or by any
other officer specified by the State Government in this behalf, authorised in writing
by such person, or, with the permission of the Commissioner, by any other person so
authorised.] 3*

Method of recording evidence. 25. Method of recording evidence.- The

Commissioner shall make a brief memorandum of the substance of the evidence of
every witness as the examination of the witness proceeds, and such memorandum
shall be written and signed by the Commissioner with his own hand and shall form
part of the record: Provided that, if the Commissioner is prevented from making
such memorandum, he shall record the reason of his inability to do so and shall
cause such memorandum to be made in writing from his dictation and shall sign the
same, and such memorandum shall form part of the record: Provided further that
the evidence of any medical witness shall be taken down as nearly as may be word
for word.

Costs. 26. Costs.- All costs, incidental to any proceedings before a Commissioner,
shall, subject to rules made under this Act, be in the discretion of the Commissioner.

Power to submit cases. 27. Power to submit cases.- A Commissioner may, if he

thinks fit, submit any question of law for the decision of the High Court and, if he
does so, shall decide the question in conformity with such decision.
---------------------------------------------------------------------- 1. Ins. by Act 5 of 1929, s. 5.
2. Subs. by Act 8 of 1959, s. 14, for the former section (w.e.f. 1- 6-1959). 3. In the
application of the Act to Bengal, new ss. 24A and 24B have been ins here by Ben.
Act 6 of 1942, s. 4. 39

Registration of agreements.

28. Registration of agreements.- (1) Where the amount of any lump sum payable as
compensation has been settled by agreement, whether by way of redemption of a
half-monthly payment or otherwise, or where any compensation has been so settled
as being payable 1*[to a woman or a person under a legal disability] 2*** a
memorandum thereof shall be sent by the employer to the Commissioner, who shall,
on being satisf- ied as to its genuineness, record the memorandum in a register in
the prescribed manner: Provided that-- (a) no such memorandum shall be recorded
before seven days after communication by the Commissioner of notice to the parties
concerned; 3* * * * * (c) the Commissioner may at any time rectify the register; (d)
where it appears to the Commissioner that an agreement as to the payment of a
lump sum whether by way of redemption of a half-monthly payment or otherwise,
or an agreement as to the amount of compensation payable 1*[to a woman or a
person under a legal disability] 4*** ought not to be registered by reason of the
inade- quacy of the sum or amount, or by reason of the agreem agreement having
been obtained by fraud or undue influence or other improper means, he may refuse
to record the memorandum of the agreement 5*[and may make such order]
including an order as to any sum already paid under the agreement, as he thinks
just in the circumstances.

(2) An agreement for the payment of compensation which has been

registered under sub-section (1) shall be enforceable under this Act notwithstanding
anything contained in the Indian Contract Act, 1872 (9 of 1872), or in any other law
for the time being in force.

Effect of failure to register agreement. 29. Effect of failure to register agreement.-

Where a memorandum of any agreement the registration of which is required by
section 28, is not sent to the Commissioner as required by that section, the employer
shall be liable to pay the full amount of compensation which he is liable to pay
under the provisions of this Act, and notwithstanding anything contained in
---------------------------------------------------------------------- 1. Subs. by Act 5 of 1929, s.
6, for certain words. 2. The words "or to a dependant" rep. by Act 7 of 1924, s. 3
and Sch. II. 3. Cl. (b) rep. by Act 5 of 1929, s. 6. 4. The words "or to any dependant"
rep. by Act 7 of 1924, s. 3 and Sch. II. 5. Subs. by Act 7 of 1924, s. 2 and Sch. I, for
"or may make such order". 40

the proviso to sub-section (1) of section 4, shall not, unless the Commissioner
otherwise directs, be entitled to deduct more than half of any amount paid to the
workmen by way of compensation whether under the agreement or otherwise.

Appeals.

30. Appeals.- (1) An appeal shall lie to the High Court from the following orders of a
Commissioner, namely:-- (a) an order awarding as compensation a lump sum
whether by way of redemption of a half-monthly payment or otherwise or
disallowing a claim in full or in part for a lump sum; 1*[(aa) an order awarding
interest or penalty under section 4A;] (b) an order refusing to allow redemption of a
half-monthly payment; (c) an order providing for the distribution of compensation
among the dependants of a deceased workman, or disallowing any claim of a person
alleging himself to be such dependant; (d) an order allowing or disallowing any
claim for the amount of an indemnity under the provisions of sub-
section (2) of section 12; or (e) an order refusing to register a memorandum of
agreement or registering the same or providing for the registration of the same
subject to conditions: Provided that no appeal shall lie against any order unless a
substantial question of law is involved in the appeal and, in the case of an order
other than an order such as is referred to in clause (b), unless the amount in dispute
in the appeal is not less than three hundred rupees: Provided, further, that no
appeal shall lie in any case in which the parties have agreed to abide by the decision
of the Commissioner, or in which the order of the Commissioner gives effect to an
agreement come to by the parties: 2*[Provided further that no appeal by an
employer under clause (a) shall lie unless the memorandum of appeal is
accompanied by a certificate by the Commissioner to the effect that the appellant
has deposited with him the amount payable under the order appealed against.]
---------------------------------------------------------------------- 1. Ins. by Act 8 of 1959, s. 15
(w.e.f. 1-6-1959). 2. Ins. by Act 15 of 1933, s. 17. 41

(2) The period of limitation for an appeal under this section shall be sixty days.

(3) The provisions of section 5 of the Indian Limitation Act, 1908 (9 of 1908), shall
be applicable to appeals under this section. 30A. Withholding of certain payments
pending decision of appeal. 1*[30A. Withholding of certain payments pending
decision of appeal.-Where an employer makes an appeal under clause (a) of sub-

section (1) of section 30, the Commissioner may, and if so directed by the High
Court shall, pending the decision of the appeal, withhold payment of any sum in
deposit with him.]

Recovery. 31. Recovery.- The Commissioner may recover as an arrear of land-

revenue any amount payable by any person under this Act, whether under an
agreement for the payment of compensation or otherwise, and the Commissioner
shall be deemed to be a public officer within the meaning of section 5 of the Revenue
Recovery Act, 1890 (1 of 1890). 2* CHAP RULES CHAPTER IV RULES

Power of the State Government to make rules.

32. Power of the State Government to make rules.-(1) The 3*[State Government]
may make rules4* to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-- (a) for
prescribing the intervals at which and the conditions subject to which an application
for review may be made under section 6 when not accompanied by a medical
certificate; (b) for prescribing the intervals at which and the conditions subject to
which a workman may be required to submit himself for medical examination
under sub-
section (1) of section 11; (c) for prescribing the procedure to be followed by
Commissioners in the disposal of cases under this Act and by the parties in such
cases; ---------------------------------------------------------------------- 1. Ins. by Act 15 of
1933, s. 18. 2. In the application of the Act to Bengal, a new s. 31A has been ins. here
by the Bengal Touts Act, 1942 (Ben. 5 of 1942), s. 12. 3. Subs. by the A. O. 1937, for
"G. G. in C.". 4. For the Workmen's Compensation Rules, 1924, see Gazette of
India, 1924, Pt. I, p. 586. 42 (d) for regulating the transfer of matters and cases from
one Commissioner to another and the transfer of money in such cases; (e) for
prescribing the manner in which money in the hands of a Commissioner may be
invested for the benefit of dependants of a deceased workman and for the transfer
of money so invested from one Commissioner to another; (f) for the representation
in proceedings before Commissioners of parties who are minors or are unable to
make an appearance;1* (g) for prescribing the form and manner in which
memoranda of agreements shall be presented and registered; (h) for the withholding
by Commissioners, whether in whole or in part of half-monthly payments pending
decision on applications for review of the same; 2*** 2* * * * * 2*[(i) for regulating
the scales of costs which may be allowed in proceedings under this Act; (j) for
prescribing and determining the amount of the fees payable in respect of any
proceedings before a Commissioner under this Act; (k) for the maintenance by
Commissioners of registers and records of proceedings before them; (l) for
prescribing the classes of employers who shall

maintain notice-books under sub-section (3) of section 10, and the form of such
notice-books; (m) for prescribing the form of statement to be submitted by
employers under section 10A; 3*** (n) for prescribing the cases in which the report
referred to in section 10B may be sent to an authority other than the
Commissioner;] 4*[(o) for prescribing abstracts of this Act and requiring the
employers to display notices containing such abstracts; (p) for prescribing the
manner in which diseases specified as occupational diseases may be diagnosed;
---------------------------------------------------------------------- 1. In the application of the
Act of Bengal, new clauses (ff), (ff1) and (ff2) have been ins. here by Ben. Act 6 of
1942, s. 5. 2. The word "and" at the end of cl. (h) and the original cl. (i) rep., and the
new cls. (i) to (n), which were the same as cls. (a) to (f) of s. 33, ins. by the A. O.
1937. 3. The word "and" omitted by Act 58 of 1960, s. 3 and Sch. II. 4. Ins. by Act 8
of 1959, s. 16 (w.e.f. 1-6-1959). 43 (q) for prescribing the manner in which diseases
may be certified for any of the purposes of this Act; (r) for prescribing the manner
in which, and the standards by which, incapacity may be assessed.]

1*[(3) Every rule made under this section shall be laid, as soon as may be after it is
made, before the State Legislature.]

[Repealed.] 33. [Power of Local Government to make rules.] Rep. by the A. O.

Publication of rules.
34. Publication of rules.- (1) The power to make rules conferred by 2*[section 32]
shall be subject to the condition of the rules being made after previous publication.

(2) The date to be specified in accordance with clause (3) of section 23 of the General
Clauses Act, 1897 (10 of 1897), as that after which a draft of rules proposed to be
made under section 32 3*** will be taken into consideration, shall not be less than
three months from the date on which the draft of the proposed rules was published
for general information.

(3) Rules so made shall be published in 4*** the Official Gazette 5*** and, on such
publication, shall have effect as if enacted in this Act.

Rules to give effect to arrangements with other countries for thetransfer of money
paid as compensation. 6*[35. Rules to give effect to arrangements with other
countries

for the transfer of money paid as compensation.- 7*[(1)] The Central Government
may, by notification in the Official Gazette, make rules for the transfer 8*** 9*[to
any foreign country] of money 10*[deposited with] a Commissioner under this Act
11*[which has been awarded to or may be due to], any person residing or about to
reside in 9*[such foreign country] and for
---------------------------------------------------------------------- 1. Ins. by Act 4 of 1986, s. 2
and Sch. (w.e.f. 15-5-1986). 2. Subs. by the A. O. 1937, for "sections 32 and 33". 3.
The words and figures "or section 33" rep., ibid. 4. The words "the Gazette of India
or" rep., ibid. 5. The words "as the case may be" rep., ibid. 6. Ins. by Act 15 of 1933,
s. 20.

7. The original s. 35 renumbered as sub-section (1) of that section by Act 7 of 1937,

s. 2. 8. The words "to any Part B State or" ins. by the A. O. 1948, omitted by Act 3
of 1951, s. 3 and Sch. 9. Subs. by Act 22 of 1984, s. 5 (w.e.f. 1-7-1984). 10. Subs. by
Act 7 of 1937, s. 2, for "paid to". 11. Subs. by 2, ibid., for "for the benefit of". 44 the
receipt 1*[distribution] and administration in 2*[any State] of any money
3*[deposited] under the law relating to workmen's compensation 4*** 5*[in any
foreign country],6*[which has been awarded to, or may be due to] any person
residing or about to reside in 2*[any State]:] 1*[Provided that no sum deposited
under this Act in respect of fatal accidents shall be so transferred without the
consent of the employer concerned until the Commissioner receiving the sum has
passed orders determining its distribution and apportionment under the

provisions of sub-sections (4) and (5) of section 8.

(2) Where money deposited with a Commissioner has been so transferred in

accordance with the rules made under this section, the provisions elsewhere
contained in this Act regarding distribution by the Commissioner of compensation
deposited with him shall cease to apply in respect of any such money.]
Rules made by Central Government to be laid before Parliament. 7*[36. Rules made
by Central Government to be laid before Parliament.- Every rule made under this
Act by the Central Government shall be laid as soon as may be after if is made
before each House of Parliament while it is in session for a total period of thirty days
which may be comprised in one session or in 8*[two or more successive sessions, and
if, before the expiry of that the session immediately following the session or the
successive sessions aforesaid], both Houses agree in making any modification in the
rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so
however that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.]
---------------------------------------------------------------------- 1. Ins. by Act 7 of 1937, s. 2.
2. Subs. by Act 3 of 1951, s. 3 and Sch., for "a Part A State or Part C State". 3. Subs.
by Act 7 of 1937, s. 2, for "awarded". 4. Of the words "in any Part B State or" ins.
by the A. O. 1950, first five words were omitted by Act 3 of 1951, s. 3 and Sch., and
the word "or" was omitted by Act 36 of 1957, s. 3 and Sch. II. 5. Subs. by act 22 of
1984, s. 5 (w.e.f. 1-7-1984). 6. Subs. by Act 7 of 1937, s. 2, for "and applicable for the
benefit of". 7. Ins. by Act 64 of 1962, s. 8 (w.e.f. 1-2-1976). 8. Subs. by Act 65 of 1976,
s. 3, for certain words (w.e.f. 21-5- 1976). 45 SCHE

See sections 2(1) and (4) 1*[SCHEDULE I

[See sections 2(1) and (4)]

2*[PART I LIST OF INJURIES DEEMED TO RESULT IN PERMANENT

TOTAL DISABLEMENT] ----------------------------------------------------------------------
Serial Description of injury Percentage No. of loss of earning capacity
---------------------------------------------------------------------- 1 Loss of both hands or
amputation at higher sites 100 2 Loss of a hand and a foot 100 3 Double amputation
through leg or thigh, or amputation through leg or thigh on one side and loss of
other foot 100 4 Loss of sight to such an extent as to render the claimant unable to
perform any work for which eye sight is essential 100 5 Very severe facial
disfigurement 100 6 Absolute deafness 100 3*[PART II LIST OF INJURIES
DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT]
Amputation cases-upper limbs (either arm) 4*[1] Amputation through shoulder
joint 90 4*[2] Amputation below shoulder with stump less than 8" from 80 tip of
acromion 4*[3] Amputation from 8" from tip of acromion to less than 70 4.5" below
tip of olecranon 4*[4] Loss of a hand or of the thumb and four fingers of one 60
hand or amputation from 4.5" below tip of olecranon 4*[5] Loss of thumb 30 4*[6]
Loss of thumb and its metacarpal bone 40 4*[7] Loss of four fingers of one hand 50
4*[8] Loss of three fingers of one hand 30 4*[9] Loss of two fingers of one hand 20
4*[10] Loss of terminal phalanx of thumb 20
---------------------------------------------------------------------- 1. Subs. by Act 8 of 1959, s.
17, for the former Sch. I (w.e.f. 1-6- 1959). 2. Subs. by Act 64 of 1962, s. 9, for the
former heading (w.e.f. 1- 2-1963). 3. Ins. by s. 9, ibid. (w.e.f. 1-2-1963). 4. Serial Nos.
7 to 54 renumbered as serial Nos. 1 to 48 respectively by s. 9, ibid. (w.e.f. 1-2-1963).
46 (Schedule I.) ---------------------------------------------------------------------- Serial
Description of injury Percentage No. of loss of earning capacity
---------------------------------------------------------------------- Amputation cases-lower
limbs 1*[11] Amputation of both feet resulting in end-bearing stumps 90 1*[12]
Amputation through both feet proximal to the metatarso- phalangeal joint 80 1*[13]
Loss of all toes of both feet through the metatarso- 40 phalangeal joint 1*[14] Loss
of all toes of both feet proximal to the proximal 30 inter-phalangeal joint 1*[15]
Loss of all toes of both feet distal to the proximal 20 inter-phalangeal joint 1*[16]
Amputation at hip 90 1*[17] Amputation below hip with stump not exceeding 5" in
80 length measured from tip of great trenchanter 1*[18] Amputation below hip with
stump exceeding 5" in length 70 measured from tip of great trenchanter but not
beyond middle thigh 1*[19] Amputation below middle thigh to 3.5" below knee 60
1*[20] Amputation below knee with stump exceeding 3.5" but 50 not exceeding 5"
1*[21] Amputation below knee with stump exceeding 5" 40 1*[22] Amputation of
one foot resulting in end-bearing 30 1*[23] Amputation through one foot proximal
to the metatarso- phalangeal joint 30 1*[24] Loss of all toes of one foot through the
metatarso- 20 phalangeal joint Other injuries 1*[25] Loss of one eye, without
complications, the other 40 being normal 1*[26] Loss of vision of one eye, without
complications or 30 disfigure- ment of eye-ball, the other being normal Loss of-- A.--
Fingers of right or left hand Index finger 1*[27] Whole 14 1*[28] Two phalanges 11
---------------------------------------------------------------------- 1. Serial Nos. 7 to 54
renumbered as serial Nos. 1 to 48 respectively by Act 64 of 1962, s. 9 (w.e.f. 1-2-
1963). 47 ---------------------------------------------------------------------- Serial Description
of injury Percentage No. of loss of earning capacity
---------------------------------------------------------------------- 1*[29] One phalanx 9 1*[30]
Guillotine amputation of tip without loss of bone 5 Middle finger 1*[31] Whole 12
1*[32] Two phalanges 9 1*[33] One phalanx 7 1*[34] Guillotine amputation of tip
without loss of bone 4 Ring or little finger 1*[35] Whole 7 1*[36] Two phalanges 6
1*[37] One phalanx 5 1*[38] Guillotine amputation of tip without loss of bone 2 B.--
Toes of right or left foot Great toe 1*[39] Through metatarso-phalangeal joint 14
1*[40] Part, with some loss of bone 3 Any other toe 1*[41] Through metatarso-
phalangeal joint 3 1*[42] Part, with some loss of bone 1 Two toes of one foot,
excluding great toe 1*[43] Through metatarso-phalangeal joint 5 1*[44] Part, with
some loss of bone 2 Three toes of one foot, excluding great toe 1*[45] Through
metatarso-phalangeal joint 6 1*[46] Part, with some loss of bone 3 Four toes of one
foot, excluding great toe 1*[47] Through metatarso-phalangeal joint 9 1*[48] Part,
with some loss of bone 3.] 2*[NOTE.--Complete and permanent loss of the use of
any limb or member referred to in this Schedule shall be deemed to be the
equivalent of the loss of that limb or member.]
---------------------------------------------------------------------- 1. Serial Nos. 7 to 54
renumbered as serial Nos. 1 to 48 respectively by Act 64 of 1962, s. 9 (w.e.f. 1-2-
1963). 2. Ins. by Act 58 of 1960, s. 3 and Sch. II. 48 SCHE

See section 2 (1) (n) SCHEDULE II

[See section 2 (1) (n)]

LIST OF PERSONS WHO, SUBJECT TO THE PROVISIONS OF SECTION 2 (1)
(n), ARE INCLUDED IN THE DEFINITION OF WORKMEN The following
persons are workmen within the meaning of section 2

(1) (n) and subject to the provisions of that section, that is to say, any person who
is-- 1*[2*[(i) employed, otherwise than in a clerical capacity or on a railway, in
connection with the operation or maintenance of a lift or a vehicle propelled by
steam or other mechanical power or by electricity or in connection with the loading
or unloading of any such vehicle; or (ii) employed, otherwise than in a clerical
capacity, in any premises wherein or within the precincts whereof a manufacturing
process as defined in clause (k) of section 2 of the Factories Act, 1948 (63 of 1948), is
being carried on, or in any kind of work whatsoever incidental to or connected with
any such manufacturing process or with the article made 3*[whether or not
employment in any such work is within such premises or precincts], and steam,
water or other mechanical power or electrical power is used; or (iii) employed for
the purpose of making, altering, repairing, ornamenting, finishing or otherwise
adapting for use, transport or sale any article or part of an article in any premises
wherein or within the precincts where of twenty or more persons are so employed;
4*** 3*[Explanation.--For the purposes of this clause, persons employed outside
such premises or precincts but in any work incidental to, or connected with, the
work relating to making, altering, repairing, ornamenting, finishing or otherwise
adapting for use, transport or sale any article or part of an article shall be deemed
to be employed within such premises or precincts; or]
--------------------------------------------------------------------- 1. Subs. by Act 15 of 1933, s.
21, for cls. (i) to (xiii). 2. Subs. by Act 8 of 1959, s. 18, for cls. (i) to (ix) (w.e.f. 1-6-
1959). 3. Ins. by Act 64 of 1962, s. 10 (w.e.f. 1-2-1963). 4. The word "or" omitted by
s. 10, ibid. (w.e.f. 1-2-1963). 48A (iv) employed in the manufacture or handling of
explosives in connection with the employer's trade or business; or (v) employed, in
any mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952),in
any mining operation or in any kind of work, other than clerical work, incidental to
or connected with any mining operation or with the mineral obtained, or in any
kind of work whatsoever below ground; or (vi) employed as the master or as a
seaman of-- (a) any ship which is propelled wholly or in part by steam or other
mechanical power or by electricity or which is towed or intended to be towed by a
ship so propelled; or (b) any ship not included in sub-clause (a), of twenty-five tons
net tonnage or over; or (c) any sea-going ship not included in sub-clause (a) or sub-
clause (b) provided with sufficient area for navigation under sails alone; or (vii)
employed for the purpose of-- (a) loading, unloading, fuelling, constructing,
repairing, demolishing, cleaning or painting any ship of which he is not the master
or a member of the crew, or handling or transport within the limits of any port
subject to the Indian Ports Act, 1908 (15 of 1908), of goods which have been
discharged from or are to be loaded into any vessel; or (b) warping a ship through
the lock; or (c) mooring and unmooring ships at harbour wall berths or in pier; or
(d) removing or replacing dry dock caisoons when vessels are entering or leaving
dry docks; or (e) the docking or undocking of any vessel during an emergency; or (f)
preparing splicing coir springs and check wires, painting depth marks on lock-sides,
removing or replacing fenders whenever necessary, landing of gangways,
maintaining life-buoys up to standard or any other maintenance work of a like
nature; or 48B (g) any work on jolly-boats for bringing a ship's line to the wharf; or
(viii) employed in the construction, maintenance, repair or demolition of-- (a) any
building which is designed to be or is or has been more than one storey in height
above the ground or twelve feet or more from the ground level to the apex of the
roof; or (b) any dam or embankment which is twelve feet or more in height from its
lowest to its highest point; or (c) any road, bridge, tunnel or canal; or (d) any wharf,
quay, sea-wall or other marine work including any moorings of ships; or (ix)
employed in setting up, maintaining, repairing or taking down any telegraph or
telephone line or post or any overhead electric line or cable or post or standard or
fittings and fixtures for the same; or] (x) employed, otherwise than in a clerical
capacity, in the construction, working, repair or demolition of any aerial ropeway,
canal, pipe-line, or sewer; or (xi) employed in the service of any fire brigade; or

(xii) employed upon a railway as defined in clause (4) of

section 3, and sub-section (1) of section 148 of the Indian Railways Act, 1890 (9 of
1890), either directly or through a sub-contractor, by a person fulfilling a contract
with the railway administration; or (xiii) employed as an inspector, mail guard,
sorter or van peon in the Railway Mail Service 1*[or as a telegraphist or as a postal
or railway signaller], or employed in any occupation ordinarily involving outdoor
work in the Indian Posts and Telegraphs Department; or (xiv) employed, otherwise
than in a clerical capacity, in connection with operations for winning natural
petroleum or natural gas; or (xv) employed in any occupation involving blasting
operations; or ---------------------------------------------------------------------- 1. Ins. by Act
8 of 1959, s. 18 (w.e.f. 1-6-1959). 48C (xvi) employed in the making of any excavation
in which on any one day of the preceding twelve months more than 1*[twenty-five]
persons have been employed or explosives have been used, or whose depth from its
highest to its lowest point exceeds 2*[twelve] feet; or (xvii) employed in the
operation of any ferry boat capable of carrying more than ten persons; or (xviii)
employed, otherwise than in a clerical capacity, on any estate which is maintained
for the purpose of growing 3*[cardamom], cinchona, coffee, rubber or tea, and on
which on any one day in the preceding twelve months twenty-five or more persons
have been so employed; or (xix) employed, otherwise than in a clerical capacity, in
the generating, transforming or supplying of electrical energy or in the generating
or supplying of gas; or (xx) employed in a lighthouse as defined in clause (d) of
section 2 of the Indian Lighthouse Act, 1927 (17 of 1927); or (xxi) employed in
producing cinematograph pictures intended for public exhibition or in exhibiting
such pictures; or (xxii) employed in the training, keeping or working of elephants or
wild animals; or 4*[(xxiii) employed in the tapping of palm-trees or the felling or
logging of trees, or the transport of timber by inland waters, or the control or
extinguishing of forest fires; or (xxiv) employed in operations for the catching or
hunting of elephants or other wild animals; or] 5[(xxv)] employed as a diver; 4*[or
(xxvi) employed in the handling or transport of goods in, or within the precincts
of,-- (a) any warehouse or other place in which goods are stored, and in which on
any one day of the preceding twelve months ten or more persons have been so
employed, or ---------------------------------------------------------------------- 1. Subs. by Act
8 of 1959, s. 18, for "fifty" (w.e.f. 1-6-1959). 2. Subs. by s. 18, ibid., for "twenty"
(w.e.f. 1-6-1959). 3. Ins. by Act 64 of 1962, s. 10 (w.e.f. 1-2-1963). 4. Ins. by Act 9 of
1938, s. 11. 5. Original cl. (xxiii) renumbered (xxv) by s. 11, ibid. 48D-48F (b) any
market in which on any one day of the preceding twelve months 1*[fifty] or more
persons have been so employed; or (xxvii) employed in any occupation involving the
handling and manipulation of radium or X-rays apparatus, or contact with radio-
active substances;] 2*[or] 2*[(xxviii) employed in or in connection with the
construction, erection, dismantling, operation or maintenance of an aircraft as
defined in section 2 of the Indian Aircraft Act, 1934 (22 of 1934); or (xxix) employed
in farming by tractors or other contrivances driven by steam or other mechanical
power or by electricity; or (xxx) employed, otherwise than in a clerical capacity, in
the construction, working, repair or maintenance of a tubewell ; or (xxxi) employed
in the maintenance, repair or renewal of electric fittings in any building ; or (xxxii)
employed in a circus.] Explanation.--In this Schedule, "the preceding twelve
months" relates in any particular case to the twelve months ending with the day on
which the accident in such case occurred.] SCHE See section 3 3*[SCHEDULE III
(See section 3) LIST OF OCCUPATIONAL DISEASES
---------------------------------------------------------------------- S. No. Occupational disease
Employment ----------------------------------------------------------------------

(1) (2) (3) ---------------------------------------------------------------------- PART A 1.

Infectious and parasitic dis- (a) All work involving exposure eases contracted in an
occu- to health or laboratory work; pation where there is a parti- cular risk of
contamination. (b) All work involving exposure to veterinary work; (c) Work
relating to handling animals, animal carcasses, part of such carcasses, or
merchandise which may have been contaminated by animals or animal carcasses;
(d) Other work carrying a parti- cular risk of contamination. 2. Diseases caused by
work in All work involving exposure to compressed air. the risk concerned. 3.
Diseases caused by lead or its All work involving exposure to toxic compounds. the
risk concerned. 4. Poisoning by nitrous fumes. All work involving exposure to the
risk concerned. 5. Poisoning by organo phospho- All work involving exposure to rus
compounds. the risk concerned. PART B 1. Diseases caused by phosphorus All work
involving exposure to or its toxic compounds. the risk concerned. 2. Diseases caused
by mercury or All work involving exposure to its toxic compounds. the risk
concerned. 3. Diseases caused by benzene or All work involving exposure to its toxic
homologues. the risk concerned. 4. Diseases caused by nitro and All work involving
exposure to amido toxic derivatives of the risk concerned. benzene or its
homologues. 5. Diseases caused by chromium All work involving exposure to or its
toxic compounds. the risk concerned. 6. Diseases caused by arsenic or All work
involving exposure to its toxic compounds. the risk concerned. 7. Diseases caused by
radioactive All work involving exposure to substances and ionising radia- the action
of radioactive sub- tions. stances or ionising radiations. 8. Primary epitheliomatous
can- All work involving exposure to cer of the skin caused by tar, the risk
concerned. pitch, bitumen, mineral oil, anthracene, or the compounds, products or
residues of these substances. 9. Diseases caused by the toxic All work involving
exposure to halogen derivatives of hydro- the risk concerned. carbons (of the
aliphatic andaromatic series). 10. Diseases caused by carbon All work involving
exposure to disulphide. the risk concerned. 11. Occupational cataract due to All
work involving exposure to infra-red radiations. the risk concerned. 12. Diseases
caused by manganese All work involving exposure to or its toxic compounds. the
risk concerned. 13. Skin diseases caused by physi- All work involving exposure to
cal, chemical or biological the risk concerned. agents not included in other items. 14.
Hearing impairment caused All work involving exposure to by noise. the risk
concerned. 15. Poisoning by dinitrophenol or All work involving exposure to a
homologue or by substitut- the risk concerned. ed dinitrophenol or by the salts of
such substances. 16. Diseases caused by beryllium All work involving exposure to or
its toxic compounds. the risk concerned. 17. Diseases caused by cadmium All work
involving exposure to or its toxic compounds. the risk concerned. 18. Occupational
asthma caused All work involving exposure to by recognised sensitising the risk
concerned. agents inherent to the work process. 19. Diseases caused by fluorine or
All work involving exposure to its toxic compounds. the risk concerned. 20. Diseases
caused by nitrogly- All work involving exposure to cerine or other nitroacid the risk
concerned. esters. 21. Diseases caused by alcohols All work involving exposure to
and ketones. the risk concerned. 22. Diseases caused by asphy- All work involving
exposure to xiants: carbon monoxide, and the risk concerned. its toxic derivatives,
hydrogen sulfide. 23. Lung cancer and mesothelio- All work involving exposure to
mas caused by asbestos. the risk concerned. 24. Primary neoplasm of the epi- All
work involving exposure to thelial lining of the urinary the risk concerned. bladder
or the kidney or the ureter. ----------------------------------------------------------------------
1. Subs. by Act 8 of 1959, s. 18, "one hundred" (w. e. f. 1-6-1959). 2. Ins. by s. 18.
ibid. (w.e.f.1-6-1959). 3. Subs. by Act 22 of 1994, s. 6 (w.e.f. 1-7-1994). PART C 1.
Pneumoconioses caused by All work involving exposure to sclerogenic mineral dust
(sili- the risk concerned. cosis, anthraoosilicosis, as- bestosis) and silico-tubercu-
losis provided that silicosis is an essential factor in causing the resultant incapacity
or death. 2. Bagassosis. All work involving exposure to the risk concerned. 3.
Bronchopulmonary diseases All work involving exposure to caused by cotton, flax
hemp the risk concerned. and sisal dust (Byssinosis). 4. Extrinsic allergic alveelitis
All work involving exposure to caused by the inhalation of the risk concerned.
organic dusts. 5. Bronchopulmonary diseases All work involving exposure to caused
by hard metals. the risk concerned."
---------------------------------------------------------------------- 1. Subs. by Act 8 of 1959, s.
18, "one hundred" (w.e.f. 1-6-1959). 2. Ins. by s. 18. ibid. (w.e.f.1-6-1959). 3. Subs.
by Act 22 of 1994, s. 6 (w.e.f. 1-7-1994). 48G SCHE See section 4 2*[SCHEDULE IV
(See section 4) Factors for working out lump sum equivalent of compensation
amount in case of permanent disablement and death.
---------------------------------------------------------------------- Completed years of age on
the last birthday of the Factors workman immediately preceding the date on which
the compensation fell due ---------------------------------------------------------------------- 1 2
---------------------------------------------------------------------- not more than 16 228.54 17
227.49 18 226.38 19 225.22 20 224.00 21 222.71 22 221.37 23 219.95 24 218.47 25
216.91 26 215.28 27 213.57 28 211.79 29 209.92 30 207.98 31 205.95 32 203.85 33
201.66 34 199.40 35 197.06 36 294.64 37 192.14 38 189.56 39 186.90 40 184.17 41
181.37 42 178.49 43 175.54 44 172.52 45 169.44 46 166.29 47 163.07 48 159.80 49
156.47 50 153.09 51 149.67 52 146.20 53 142.68 54 139.13 55 135.56 56 131.95 57
128.33 58 124.70 59 121.05 60 117.41 61 113.77 62 110.14 63 106.52 64 102.93 65 or
more 99.37.] ---------------------------------------------------------------------- 1 Subs. by Act
22 of 1984, s. 7 (w.e.f. 1-7-1984).

THE EMPLOYEES STATE INSURANCE ACT, 1948

Title : THE EMPLOYEES STATE INSURANCE ACT, 1948

Year : 1948

Act :

THE EMPLOYEES STATE INSURANCE ACT, 1948.ACT NO. 34 OF 1948 1*

[19th April, 1948.]

An Act to provide for certain benefits to employees in case of sickness, maternity

and employment injury and to make provision for certain other matters in relation
thereto.

WHEREAS it is expedient to provide for certain benefits to employees in case of

sickness, maternity and employment injury and to make provision for certain other
matters in relation thereto;

It is hereby enacted as follows:--

CHAP

PRELIMINARY

CHAPTER I

PRELIMINARY

1.Short title, extent, commencement and application.

1. Short title, extent, commencement and application.- (1) This

Act may be called the Employees State Insurance Act, 1948.(2) It extends to the
whole of India 2***.

(3) It shall come into force on such date or dates3* as the

Central Government may, by notification in the Official Gazette, appoint, and
different dates 3* may be appointed for different provisions of this Act and 4*[for
different States or for different parts thereof].

(4) It shall apply, in the first instance, to all factories

(including factories belonging to the Government) other than seasonal factories.

5*[Provided that nothing contained in this sub-section shall apply to a factory or

establishment belonging to or under the control of the Government whose
employees are otherwise in receipt of benefits substantially similar or superior to
the benefits provided under this
Act.]

(5) The appropriate Government may, in consultation with the

Corporation and 6*[where the appropriate Government is a State
Government, with the approval of the Central Government], after giving six months
notice of its intention of so doing by notification in the
Official Gazette, extend the provisions of this Act or any of them, to any other
establishment or class of establishments, industrial, commercial, agricultural or
otherwise:

7*[Provided that where the provisions of this Act have been brought into force in
any part of a State, the said provisions shall stand extended to any such
establishment or class of establishments within that part if the provisions have
already been extended to similar establishment or class of establishments in another
part of that State.];

5*[(6) A factory or an establishment to which this Act applies shall continue to be

governed by this Act notwithstanding that the number of persons employed therein
at any time falls below the limit specified by or under this Act or the manufacturing
process therein ceases to be carried on with the aid of power.].
---------------------------------------------------------------------
1. This Act has been extended to Jaunsar Bawar Parganas in the Dehra
Dun District and the areas of South of Kaimpur range in the Mirzapur
District of the State of Uttar Pradesh by Schedule IV of Act 20 of
1954; Pondicherry by Reg. 7 of 1963, s. 3 and Sch. I and Goa, Daman and Diu by
Reg. 11 of 1963, s. 3 and Sch.
2. The words "except the State of Jammu and Kashmir" omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).
3. For dates, see Annexure.
4. Subs. by Act 53 of 1951, s. 2, for "for different States".
5. Ins. by Act 29 of 1989, s. 2 (w.e.f. 20-10-1989).
6. Subs. by Act 53 of 1951, s. 2, for "with the approval of the
Central Government".
7. Ins. by Act 29 of 1989, s. 2 (w.e.f. 16-5-1990).

224.2.Definations.

2. Definations.- In this Act, unless there is anything repugnant in the subject or

context,--

(1) "appropriate Government" means, in respect of establishments under the control

of the Central
Government or 1*[a railway administration] or a major port or a mine or oilfield, the
Central Government, and in all other cases, the State Government;

2* * * * *

(3) "confinement" means labour resulting in the issue of a living child, or labour
after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or
dead;

(4) "contribution" means the sum of money payable to the

Corporation by the principal employer in respect of an employee and includes any
amount payable by or on behalf of the employee in accordance with the provisions of
this Act;

4* * * * *

(6) "Corporation" means the Employees State Insurance

Corporation set up under this Act;

3*[(6A) "dependant" means any of the following relatives of a deceased insured

person, namely:--

(i) a widow, a minor legitimate or adopted son, an unmarried legitimate and adopted
4*[daughter;]

5*[(ia) a widowed mother;]

---------------------------------------------------------------------
1. Subs. by the A.O. 1950 for "a federal railway".
2. Omitted by Act 29 1989, s. 3 (w.e.f. .........).
3. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).
4. Subs. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
5. Ins. by s. 3, ibid. (w.e.f. 20-10-1989).
225.(ii) if wholly dependent on the earnings of the insured person at the time of his
death, a legitimate or adopted son or daughter who has attained the age of eighteen
years and is infirm;

(iii) if wholly or in part dependent on the earnings of the insured person at the time
of his death,--

(a) a parent other than a widowed mother,

(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter

legitimate or adopted or illegitimate if married and a minor or if widowed and a
minor,

(c) a minor brother or an unmarried sister or a widowed sister if a minor,

(d) a widowed daughter-in-law,

(e) a minor child of a pre-deceased son,

(f) a minor child of a pre-deceased daughter where no parent of the child is alive, or

(g) a paternal grand-parent if no parent of the insured person is alive;]

(7) "duly appointed" means appointed in accordance with the provisions of this Act
or with the rules or regulations made thereunder;

1*[(8) "employment injury" means a personal injury to an employee caused by

accident or an occupational disease arising out of and in the course of his
employment, being an insurable employment, whether the accident occurs or the
occupational disease is contracted within or outside the territorial limits of India;]

(9) "employee" means any person employed for wages in or in connection with the
work of a factory or establishment to which this Act applies and--

(i) who is directly employed by the principal employer on any work of, or incidental
or preliminary to or connected with the work of, the factory or establishment,
whether such work is done by the employee in the factory or establishment or
elsewhere;
or

(ii) who is employed by or through an immediate employer on the premises of the

factory or establishment or
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 2, for cl. (8) (w.e.f. 28-1-1968).

226.under the supervision of the principal employer or his agent on work which is
ordinarily part of the work of the factory or establishment or which is preliminary to
the work carried on in or incidental to the purpose of the factory or establishment;
or

(iii) whose services are temporarily lent or let on hire to the principal employer by
the person with whom the person whose services are so lent or let on hire has
entered into a contract of service;

1*[and includes any person employed for wages on any work connected with the
administration of the factory or establishment or any part, department or branch
thereof or with the purchase of raw materials for, or the distribution or sale of the
products of, the factory or establishment 2*[ or any person engaged as an
apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of
1961), or under the standing orders of the establishment; but does not include]]

(a)any member of 3*[the Indian] naval, military or air forces; or

4*[(b) any person so employed whose wages

(excluding remuneration for overtime work) exceed
5*[such wages as may be prescribed by the Central
Government]:

Provided that an employee whose wages (excluding remuneration for overtime

work) exceed 5*[ such wages as may be prescribed by the Central Government] at
any time after (and not before) the beginning of the contribution period, shall
continue to be an employee until the end of that period;]

(10) "exempted employee" means an employee who is not liable under this Act to
pay the employees contribution;

2*[(11) "family" means all or any of the following relatives of an insured person,
namely:--

(i) a spouse;

(ii) a minor legitimate or adopted child dependent upon the insured person;

(iii) a child who is wholly dependent on the earnings of the insured person and who
is--

(a) receiving education, till he or she attains the age of twenty-one years,

(b) an unmarried daughter;

(iv) a child who is infirm by reason of any physical or mental abnormality or injury
and is wholly dependent on the earnings of the insured person, so long as the
infirmity continues;

(v) dependent parents;

(12) "factory" means any premises including the precincts thereof--

(a) whereon ten or more persons are employed or were employed for wages 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

(b) whereon twenty or more persons are employed or were employed for wages 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 does not include a mine subject to the operation of the Mines Act,
1952 (35 of 1952) or a railway running shed;]
---------------------------------------------------------------------
1. Subs. by Act 44 of 1966, s. 2, for "but does not include" (w.e.f.
28-1-1968).
2. Subs. by Act 29 of 1989 s. 3 (w.e.f. 20-10-1989).
3. Subs. by the A.O. 1950, for "His Majestys".
4. Subs. by Act 44 of 1966, s. 2, for cl. (b) (w.e.f. 28-1-1968).
5. Subs. by Act 29 of 1989, s. 3 (w.e.f. ....... ).

227.(13) "immediate employer", in relation to employees employed by or through

him, means a person who has undertaken the execution, on the premises of a
factory or an establishment to which this Act applies or under the supervision of the
principal employer or his agent, of the whole or any part of any work which is
ordinarily part of the work of the factory or establishment of the principal employer
or is preliminary to the work carried on in, or incidental to the purpose of, any such
factory or establishment, and includes a person by whom the services of an
employee who has entered into a contract of service with him are temporarily lent or
let on hire to the principal employer; 1*[and includes a contractor];

2*(13A) "insurable employment" means an employment in a factory or

establishment to which this Act applies;]
---------------------------------------------------------------------
1. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
2. Clause (13A) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).

228.(14) "insured person" means a person who is or was an employee in respect of

whom contributions are or were payable under this
Act and who is, by reason thereof, entitled to any of the benefits provided by this
Act;

1*[(14A) "managing agent" means any person appointed or acting as the

representative of another person for the purpose of carrying on such other persons
trade or business, but does not include an individual manager subordinate to an
employer;

2*[ (14AA) "manufacturing process" shall have the meaning assigned to it in the
Factories Act, 1948 (63 of 1948);]

(14B) "mis-carriage" means expulsion of the contents of a pregnant uterus at any

period prior to or during the twenty sixth week of pregnancy but does not include
any miscarriage, the causing of which is punishable under the Indian Penal Code
(45 of 1860);]

(15) "occupier" of the factory shall have the meaning assigned to it in the Factories
Act, 3*[1948 (63 of 1948)];

4*[(15A) "permanent partial disablement" means such disablement of a permanent

nature, as reduces the earning capacity of an employee in every employment which
he was capable of undertaking at the time of the accident resulting in the
disablement:

Provided that every injury specified in Part II of the Second

Schedule shall be deemed to result in permanent partial disablement;

(15B) "permanent total disablement" means such disablement of a permanent

nature as incapacitates an employee for all work which he was capable of
performing at the time of the accident resulting in such disablement:

Provided that permanent total disablement shall be deemed to result from every
injury specified in Part I of the Second
Schedule or from any combination of injuries specified in
Part II thereof where the aggregate percentage of the loss of earning capacity, as
specified in the said Part II
against those injuries, amounts to one hundred per cent. or more;]
2*[(15C) "power" shall have the meaning assigned to it in the
Factories Act, 1948(53 of 1948);]

(16) "prescribed" means prescribed by rules made under this Act:

---------------------------------------------------------------------
1. Clauses (14A) and (14B) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-
1-1968).
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 53 of 1951, s. 3, for "1934".
4. Clauses (15A) and (15B) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-
1-1968).

229.(17) "principal employer" means--

(i) in a factory, the owner or occupier of the factory and includes the managing
agent of such owner or occupier, the legal representative of a deceased owner or
occupier, and where a person has been named as the manager of the factory under
1*[the Factories Act, 1948 (63 of 1948)], the person so named;

(ii) in any establishment under the control of any department of any Government in
India, the authority appointed by such Government in this behalf or where no
authority is so appointed, the head of the department;

(iii) in any other establishment, any person responsible for the supervision and
control of the establishment;

(18) "regulation" means a regulation made by the Corporation;

(19) "Schedule" means a Schedule to this Act;

2*[(19A) "seasonal factory" means a factory which is exclusively engaged in one or

more of the following manufacturing processes, namely, cotton ginning, cotton or
jute pressing, decortication of groundnuts, the manufacture of coffee, indigo, lac,
rubber, sugar
(including gur) or tea or any manufacturing process which is incidental to or
connected with any of the aforesaid processes and includes a factory which is
engaged for a period not exceeding seven months in a year--

(a) in any process of blending, packing or repacking of tea or coffee; or

(b) in such other manufacturing process as the Central

Government may, by notification in the Official
Gazette, specify;]

(20) "sickness" means a condition which requires medical treatment and attendance
and necessitates abstention from work on medical grounds;

(21) "temporary disablement" means a condition resulting from an employment

injury which requires medical treatment and renders an employee, as a result of
such injury, temporarily incapable of 3*[doing the work which he was doing prior to
or at the time of the injury];
(22) "wages" means all remuneration paid or payable, in cash to an employee, if the
terms of the contract of employment, express or implied, were fulfilled and includes
4*[any payment to an employee in respect of any period of authorised leave, lock-
out, strike which is not illegal or lay-off and] other additional remuneration, if any,
5*[paid at intervals not exceeding two months], but does not include--

(a) any contribution paid by the employer to any pension fund or provident fund, or
under this Act;

(b) any travelling allowance or the value of any travelling concession;

---------------------------------------------------------------------
1. Subs. by Act 53 of 1951, s. 3, for "clause (e) of sub-section (1)
of section 9 of the Factories Act, 1934".
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, s. 2, for "work" (w.e.f. 28-1-1968).
4. Ins. by s. 2, ibid. (w.e.f. 28-1-1968).
5. Subs. by Act 53 of 1951, s. 3, for "paid at regular intervals after the last day of the
wage period".

230

(c) any sum paid to the person employed to defray special expenses entailed on him
by the nature of his employment; or

(d) any gratuity payable on discharge;

1*[ (23) "wage period" in relation to an employee means the period in respect of
which wages are ordinarily payable to him whether in terms of the contract of
employment, express or implied or otherwise;]

2*[(24) all other words and expressions used but not defined in this Act and defined
in the Industrial Disputes Act,
1947 (14 of 1947), shall have the meaninsg respectively assigned to them in that
Act.]

2A.

Registration of factories and establishments.

3*[2A. Registration of factories and establishments.- Every factory or establishment

to which this Act applies shall be registered within such time and in such manner as
may be specified in the regulations made in this behalf.]
THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

Year : 1952

Act :

THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952.ACT

NO. 19 OF 1952 1*

[4th March, 1952.]

An Act to provide for the institution of provident funds 2*[3*[, family pension fund and
deposit-linked insurance fund]] for employees in factories and other establishments.

BE it enacted by Parliament as follows :--

1.Short title, extent and application.

1. Short title, extent and application.- 4*[(1) This Act may be called the Employees
Provident Funds and Miscellaneous Provisions
Act, 1952.]

(2) It extends to the whole of India except the State of

Jammu and Kashmir.

5*[(3) Subject to the provisions contained in section 16, it applies--

(a) to every establishment which is a factory engaged in any industry specified in

Schedule I and in which
6*[twenty] or more persons are employed, and

(b) to any other establishment employing 6*[twenty] or more persons or class of such
establishments which the
Central Government may, by notification in the Official
Gazette, specify in this behalf:

Provided that the Central Government may, after giving not less than two months notice
of its intention so to do, by notification in the Official Gazette, apply the provisions of this
Act to any establishment employing such number of persons less than 6*[twenty] as may
be specified in the notification.]

7*[(4) Notwithstanding anything contained in sub-section (3) of this section or sub-

section (1) of section 16, where it appears to the
Central Provident Fund Commissioner, whether on an application made to him in this
behalf or otherwise, that the employer and the majority of employees in relation to any
establishment have agreed that the provisions of this Act should be made applicable to
the establishment, he may, by notification in the Official Gazette, apply the provisions of
this Act to that establishment on and from the date of such agreement or from any
subsequent date specified in such agreement.]
---------------------------------------------------------------------
1. This Act has been extended to Dadra and Nagar Haveli by Reg. 6 of
1963, s. 2 and Sch. I; Pondicherry by Reg. 7 of 1963, s. 3 and
Sch. I and Goa, Daman and Diu by Reg. 11 of 1963, s. 3 and Sch.
2. Ins. by Act 16 of 1971, s. 12.3. Subs. by Act 99 of 1976, s. 16, for "and family pension
fund"
(w.e.f. 1-8-1976).
4. Subs. by s. 17, ibid., for sub-section (1) (w.e.f. 1-8-1976).
5. Subs. by Act 94 of 1956, s. 2, for sub-section (3).
6. Subs. by Act 46 of 1960, s. 2, for "fifty" (w.e.f. 31-12-1960).
7. Subs. by Act 33 of 1988, s. 2 (w.e.f. 1-8-1988).

304.1*[(5) An establishment to which this Act applies shall continue to be governed by

this Act notwithstanding that the number of persons employed therein at any time falls
below twenty.

2* * * * *]

2.Definitions.

2. Definitions.- In this Act, unless the context otherwise requires,--

3*[(a) "appropriate Government" means--

(i) in relation to an establishment belonging to, or under the control of, the Central
Government or in relation to an establishment connected with a railway company, a
major port, a mine or an oil field or a controlled industry,
4*[or in relation to an establishment having departments or branches in more than one
State,]
the Central Government; and

(ii) in relation to any other establishment, the State Government;]

5*[(aa) "authorised officer" means the Central Provident

Fund Commissioner, Additional Central Provident
Fund Commissioner, Deputy Provident Fund
Commissioner, Regional Provident Fund Commissioner or such other officer as may be
authorised by the
Central Government, by notification in the
Official Gazette;]

(b) "basic wages" means all emoluments which are earned by an employee while on duty
or 6*[ on leave or on holidays with wages in either case] in accordance with the terms of
the contract of employment and which are paid or payable in cash to him, but does not
include--

(i) the cash value of any food concession;

(ii) any dearness allowance (that is to say, all cash payments by whatever name called
paid to an employee on account of a rise in the cost of living), house-rent allowance,
overtime allowance, bonus, commission or any other similar allowance payable to the
employee in respect of his employment or of work done in such employment;

(iii) any presents made by the employer;

(c) "contribution" means a contribution payable in respect of a member under a Scheme

7*[or the contribution payable in respect of an employee to whom the
Insurance Scheme applies];

(d) "controlled industry" means any industry the control of which by the Union has been
declared by a Central
Act to be expedient in the public interest;

8*[(e) "employer" means--

(i) in relation to an establishment which is a factory, the owner or occupier of the factory,
including the agent of
---------------------------------------------------------------------
1. Ins. by Act 46 of 1960, s. 2 (w.e.f. 31-12-1960).
2. Proviso omitted by Act 16 of 1971, s. 13 (w.e.f. 23-4-1971).
3. Subs. by Act 22 of 1958, s. 2, for the former clause.
4. Ins. by Act 22 of 1965, s. 2 (w.e.f. 24-11-1964).
5. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).
6. Subs. by s. 3, ibid. (w.e.f. 1-8-1988).
7. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).
8. Subs. by Act 94 of 1956, s. 4, for cl. (e).

305.such owner or occupier, the legal representative of a deceased owner or occupier

and, where a person has been named as a manager of the factory under clause (f) of sub-
section (1) of section 7.of the Factories Act, 1948 (63 of 1948), the person so named; and

(ii) in relation to any other establishment, the person who, or the authority which, has
the ultimate control over the affairs of the establishment, and where the said affairs are
entrusted to a manager, managing director or managing agent, such manager, managing
director or managing agent;]

(f) "employee" means any person who is employed for wages in any kind of work, manual
or otherwise, in or in connection with the work of 1*[an establishment], and who gets his
wages directly or indirectly from the employer,
2*[and includes any person--

(i) employed by or through a contractor in or in connection with the work of the

establishment;

(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices
Act,
1961 (52 of 1961), or under the standing orders of the establishment;]

3*[(ff) "exempted employee" means an employee to whom a

Scheme 4*[or the Insurance Scheme, as the case may be,]
would, but for the exemption granted under 5*** section
17, have applied;

(fff) "exempted 6*[establishment]" means 1*[an establishment] in respect of which an

exemption has been granted under section 17 from the operation of all or any of the
provisions of any Scheme 4*[or the
Insurance Scheme, as the case may be], whether such exemption has been granted to the
6*[establishment] as such or to any person or class of persons employed therein;]

(g) "factory" means any premises, including the precincts thereof, in any part of which a
manufacturing process is being carried on or is ordinarily so carried on, whether with the
aid of power or without the aid of power;

7*[(gg) "Family Pension Fund" means the Family Pension Fund established under the
Family Pension Scheme;
---------------------------------------------------------------------
1. Subs. by Act 94 of 1956, s. 3, for "a factory".
2. Subs. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).
3. Ins. by Act 37 of 1953, s. 3.4. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).
5. The words, brackets and figure "sub-section (1) of" omitted by
Act 28 of 1963; s. 2 (w.e.f. 30-11-1963).
6. Subs. by Act 94 of 1956, s. 3, for "factory".
7. Ins. by Act 16 of 1971, s.14 (w.e.f. 23-4-1971).

306.(ggg) "Family Pension Scheme" means the Employees Family

Pension Scheme framed under section 6A;]

(h) "Fund" means the provident fund established under a

Scheme;

(i) "industry" means any industry specified in Schedule I, and includes any other industry
added to the Schedule by notification under section 4;

1*[(ia) "Insurance Fund" means the Deposit-linked Insurance

Fund established under sub-section (2) of section 6C;

(ib) "Insurance Scheme" means the Employees" Deposit-linked

Insurance Scheme framed under sub-section (1) of section 6C;]

2*[3*[(ic)] "manufacture" or "manufacturing process" means any process for making,

altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking
up, demolishing or otherwise treating or adapting any article or substance with a view to
its use, sale, transport, delivery or disposal;]

(j) "member" means a member of the Fund;

(k) "occupier of a factory" means the person who has ultimate control over the affairs of
the factory, and, where the said affairs are entrusted to a managing agent, such agent
shall be deemed to be the occupier of the factory;

4*[(ka) "prescribed" means prescribed by rules made under this Act;

(kb) "Recovery Officer" means any officer of the Central
Government, State Government or the Board of Trustees constituted under section 5A,
who may be authorised by the Central Government, by notification in the Official
Gazette, to exercise the powers of a Recovery Officer under this Act;]

5*[(l) "Scheme" means the Employees Provident Fund Scheme framed under section 5.]

4*[(m) "Tribunal" means the Employees Provident Funds

Appellate Tribunal constituted under section 7D].

2A.

Establishment to include all departments and branches.

6*[2A. Establishment to include all departments and branches.-For the removal of

doubts, it is hereby declared that where an establishment consists of different
departments or has branches, whether situate in the same place or in different places, all
such departments or branches shall be treated as parts of the same establishment.]

3.Power to apply Act to an establishment which has a common providentfund with

another establishment.

7*[3. Power to apply Act to an establishment which has a common provident fund with
another establishment.- Where immediately before this Act becomes applicable to an
establishment there is in existence a provident fund which is common to the employees
employed in that establishment and employees in any other establishment, the Central
Government may, by notification in Official Gazette, direct that the provisions of this Act
shall also apply to such other establishment.]
---------------------------------------------------------------------
1. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).
2. Subs. by Act 28 of 1963, s. 2, for cl. (ia) (w.e.f. 30-11-1963).
Cl. (ia) ins. by Act 37 of 1953, s. 3.3. Cl. (ia) relettered as (ic) by Act 99 of 1976, s. 18
(w.e.f. 1-8-
1976).
4. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).
5. Subs. by Act 16 of 1971, s. 14, for cl. (l) (w.e.f. 23-4-1971).
6. Ins. by Act 46 of 1960, s. 3 (w.e.f. 31-12-1960).
7. Subs. by Act 94 of 1956, s. 5, for the former section.

307.4.Power to add to Schedule I.

4. Power to add to Schedule I.-(1) The Central Government may, by notification in the
Official Gazette, add to Schedule I any other industry in respect of the employees whereof
it is of opinion that a provident fund scheme should be framed under this Act, and
thereupon the industry so added shall be deemed to be an industry specified in
Schedule I for the purposes of this Act.
(2) All notifications under sub-section (1) shall be laid before
Parliament, as soon as may be, after they are issued.

5.Employees Provident Fund Schemes.

5. Employees Provident Fund Schemes.- 1*[(1)] The Central

Government may, by 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 for employees or for any class of employees and specify
the 2*[establishments] or class of
2*[establishments] to which the said Scheme shall apply 3*[and there shall be
established, as soon as may be after the framing of the
Scheme, a Fund in accordance with the provisions of this Act and the
Scheme].

4*[(1A) The Fund shall vest in, and be administered by, the
Central Board constituted under section 5A.

(1B) Subject to the provisions of this Act, a Scheme framed under sub-section (1) may
provide for all or any of the matters specified in
Schedule II.]

3*[(2) A Scheme framed under sub-section (1) may provide that any of its provisions
shall take effect either prospectively or retrospectively on such date as may be specified
in this behalf in the
Scheme.]

5A.

Central Board.

5*[5A. Central Board.- (1) The Central Government may, by notification in the Official
Gazette, constitute, with effect from such date as may be specified therein, a Board of
Trustees for the territories to which this Act extends (hereinafter in this Act referred to as
the Central Board) consisting of the following
6*[persons as members] namely:--

(a) 6*[a Chairman and a Vice-Chairman] to be appointed by the Central Government;

7*[(aa) the Central Provident Fund Commissioner, ex-

officio;]

(b) not more than five persons appointed by the Central

Government from amongst its officials;

(c) not more than fifteen persons representing Governments of such States as the Central
Government may specify in this behalf, appointed by the Central Government;
---------------------------------------------------------------------
1. S. 5 re-numbered as sub-section (1) by Act 37 of 1953, s. 4.2. Subs. by Act 94 of 1956,
s. 3, for "factories".
3. Ins. by Act 37 of 1953, s. 4.4. Ins. by Act 28 of 1963, s. 3 (w.e.f. 30-11-1963).
5. Ins. by s. 4, ibid. (w.e.f. 30-11-1963).
6. Subs. by Act 33 of 1988, s. 4 (w.e.f. 1-8-1988).
7. Ins. by s. 4, ibid. (w.e.f. 1-8-1988).

308.(d) 1*[ten persons] representing employers of the establishments to which the

Scheme applies, appointed by the Central Government after consultation with such
organisations of employers as may be recognised by the
Central Government in this behalf; and

(e) 1*[ten persons] representing employees in the establishments to which the Scheme
applies, appointed by the Central Government after consultation with such organisations
of employees as may be recognised by the
Central Government in this behalf.

(2) The terms and conditions subject to which a member of the

Central Board may be appointed and the time, place and procedure of the meetings of the
Central Board shall be such as may be provided for in the Scheme.

(3) The Central Board shall 2*[, subject to the provisions of section 6A 3*[and section
6C,]] administer the Fund vested in it in such manner as may be specified in the Scheme.

(4) The Central Board shall perform such other functions as it may be required to perform
by or under any provisions of the Scheme
4*[5*[, the Family Pension Scheme and the Insurance Scheme]].

6*[(5) The Central Board shall maintain proper accounts of its income and expenditure in
such form and in such manner as the Central
Government may, after consultation with the Comptroller and Auditor-
General of India, specify in the Scheme.

(6) The accounts of the Central Board shall be audited annually by the Comptroller and
Auditor-General of India and any expenditure incurred by him in connection with such
audit shall be payable by the
Central Board to the Comptroller and Auditor-General of India.

(7) The Comptroller and Auditor-General of India and any person appointed by him in
connection with the audit of the accounts of the
Central Board shall have the same rights and privileges and authority in connection with
such audit as the Comptroller and Auditor-General has, in connection with the audit of
Government accounts and, in particular, shall have the right to demand the production of
books, accounts, connected vouchers, documents and papers and inspect any of the
offices of the Central Board.

(8) The accounts of the Central Board as certified by the

Comptroller and Auditor-General of India or any other person appointed by him in this
behalf together with the audit report thereon shall be forwarded to the Central Board
which shall forward the same to the
Central Government along with its comments on the report of the
Comptroller and Auditor-General.

(9) It shall be the duty of the Central Board to submit also to the Central Government an
annual report of its work and activities and the Central Government shall cause a copy of
the annual report, the audited accounts together with the report of the Comptroller and
Auditor-General of India and the comments of the Central Board thereon to be laid before
each House of Parliament."

5AA.

Executive Committee.

7*[5AA. Executive Committee.- (1) The Central Government may, by notification in the
Official Gazette, constitute, with effect from such date as may be specified therein, an
Executive Committee to assist the Central Board in the performance of its functions.

(2) The Executive Committee shall consist of the following persons as members,
namely:--

(a) a Chairman appointed by the Central Government from amongst the members of the
Central Board;

(b) two persons appointed by the Central Government from amongst the persons referred
to in clause (b) of sub-
section (1) of section 5A;

(c) three persons appointed by the Central Government from amongst the persons
referred to in clause (c) of sub-
section (1) of section 5A;

(d) three persons representing the employees elected by the

Central Board from amongst the persons referred to in clause (d) of sub-section (1) of
section 5A;

(e) three persons representing the employees elected by the

Central Board from amongst the persons referred to in clause (e) of sub-section (1) of
section 5A;

(f) the Central Provident Fund Commissioner, ex officio.

(3) The terms and conditions subject to which a member of the

Central Board may be appointed or elected to the Executive Committee and the time,
place and procedure of the meetings of the Executive
Committee shall be such as may be provided for in the Scheme].

5B.

State Board.
5B. State Board.- (1) The Central Government may, after consultation with the
Government of any State, by notification in the
Official Gazette, constitute for that State a Board of Trustees
(hereinafter in this Act referred to as the State Board) in such manner as may be
provided for in the Scheme.

(2) A State Board shall exercise such powers and perform such duties as the Central
Government may assign to it from time to time.

(3) The terms and conditions subject to which a member of a State

Board may be appointed and the time, place and procedure of the meetings of a State
Board shall be such as may be provided for in the
Scheme.

5C.

Board of Trustees to be body corporate.

5C. Board of Trustees to body corporate.- Every Board of Trustees constituted under
section 5A or section 5B shall be a body corporate under the name specified in the
notification constituting it, having perpetual succession and a common seal and shall by
the said name sue and be sued.

5D.

Appointment of officers.

5D. Appointment of officers.- (1) The Central Government shall appoint a Central
Provident Fund Commissioner who shall be the chief executive officer of the Central
Board and shall be subject to the general control and superintendence of the Board.
---------------------------------------------------------------------

1. Subs. by Act 33 of 1988, s. 4 (w.e.f. 1-8-1988).

2. Ins. by Act 16 of 1971, s. 15 (w.e.f. 23-4-1971).
3. Ins. by Act 99 of 1976, s. 19 (w.e.f. 1-8-1976).
4. Ins. by Act 16 of 1971, s. 16 (w.e.f. 23-4-1971).
5. Subs. by Act 99 of 1976, s. 19, for "and the Family Pension
Scheme" (w.e.f. 1-8-1976).
6. Ins. by Act 33 of 1988, s. 4 (w.e.f. 1-8-1988).
7. Ins. by s. 5, ibid. (w.e.f. 1-8-1988).

309.(2) The Central Government may also appoint 1*[ a Financial

Adviser and Chief Accounts Officer] to assist the Central Provident
Fund Commissioner in the discharge of his duties.

(3) The Central Board may appoint 2*[, subject to the maximum scale of pay, as may be
specified in the Scheme, as many Additional
Central Provident Fund Commissioners, Deputy Provident Fund
Commissioners, Regional Provident Fund Commissioners, Assistant
Provident Fund Commissioners and] such other officers and employees as it may consider
necessary for the efficient administration of the
Scheme 3*[4*[, the Family Pension Scheme and the Insurance Scheme]].

(4) No appointment to 1*[the post of the Central Provident Fund

Commissioner or an Additional Central Provident Fund Commissioner or an Financial
Adviser and Chief Accounts Officer or any other post under the Central Board carrying a
scale of pay equivalent to the scale of pay of any Group `A or Group `B post under the
Central
Government] shall be made except after consultation with the Union
Public Service Commission:

Provided that no such consultation shall be necessary in regard to any such

appointment--

(a) for a period not exceeding one year; or

(b) if the person to be appointed is at the time of his appointment--

(i) a member of the Indian Administrative Service, or

(ii) in the service of the Central Government or a

State Government or the Central Board in a 1*[Group `A
or Group `B post].

(5) A State Board may, with the approval of the State Government concerned, appoint
such staff as it may consider necessary.

(6) The method of recruitment, salary and allowances, discipline and other conditions of
service of the Central Provident Fund
Commissioner, 1*[and the Financial Adviser and Chief Accounts
Officer] shall be such as may be specified by the Central Government and such salary and
allowances shall be paid out of the Fund.

1*[(7) (a) The method of recruitment, salary and allowances, discipline and other
conditions of service of the Additional Central
Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident
Fund Commissioner, Assistant Provident Fund
Commissioner and other officers and employees of the Central Board shall be such as may
be specified by the Central Board in accordance with the rules and orders applicable to
the officers and employees of the Central Government drawing corresponding scales of
pay:

Provided that where the Central Board is of the opinion that it is necessary to make a
departure from the said rules or orders in respect of any of the matters aforesaid, it shall
obtain the prior approval of the Central Government.

(b) In determining the corresponding scales of pay of officers and employees under
clause (a), the Central Board shall have regard to the educational qualifications, method
of recruitment, duties and responsibilities of such officers and employees under the
Central
Government and in case of any doubt, the Central Board shall refer the matter to the
Central Government whose decision thereon shall be final.]

(8) The method of recruitment, salary and allowances, discipline and other conditions of
service of officers and employees of a State
Board shall be such as may be specified by that Board, with the approval of the State
Government concerned.

5DD.

Acts and proceedings of the Central Board or its Executive Committeeor the
State Board not to be invalidated on certain grounds.

5*[5DD. Acts and proceedings of the Central Board or its

Executive Committee or the State Board not to be in validated on certain grounds.- No act
done or proceeding taken by the Central Board or the Executive Committee constituted
under section 5AA or the State
Board shall be questioned on the ground merely of the existence of any vacancy in, or any
defect in the constitution of, the Central Board or the Executive Committee or the State
Board, as the case may be.]

5E.

Delegation.

5E. Delegation.- 6*[The Central Board may delegate to the

Executive Committee or to the Chairman of the Board or to any of its officers and a State
Board may delegate to its Chairman or to any of its officers].
---------------------------------------------------------------------
1. Subs. by Act 33 of 1988, s. 6 (w.e.f. 1-8-1988).
2. Ins. by s. 6 ibid. (w.e.f. 1-8-1988).
3. Ins. by Act 16 of 1971, s. 16.4. Subs. by Act 99 of 1976, s. 20, for "and the Family
Pension
Scheme" (w.e.f. 1-8-1976).
5. Ins. by Act 33 of 1988, s. 7 (w.e.f. 1-8-1988).
6. Subs. by s. 8, ibid. (w.e.f. 1-8-1988).

310.subject to such conditions and limitations, if any, as it may specify, such of its
powers and functions under this Act as it may deem necessary for the efficient
administration of the Scheme 1*[, the
Family Pension Scheme and the Insurance Scheme].]

6.Contributions and matters which may be provided for in Schemes.

6. Contributions and matters which may be provided for in

Schemes.-2*** The contribution which shall be paid by the employer to the Fund shall be
3*[eight and one-third per cent.] of the basic wages, 4*[dearness allowance and
retaining allowance (if any)] for the time being payable to each of the employees
5*[(whether employed by him directly or by or through a contractor)], and the
employees
contribution shall be equal to the contribution payable by the employer in respect of him
and may, 3*[if any employee so desires, be an amount exceeding eight and one-third per
cent. of his basic wages, dearness allowance and retaining allowance (if any), subject to
the condition that the employer shall not be under an obligation to pay any contribution
over and above his contribution payable under this section.]

6*[3*[Provided that in its application to any establishment or class of establishments

which the Central Government, after making such inquiry as it deems fit, may, by
notification in the Official
Gazette specify, this section shall be subject to the modification that for the words "eight
and one-third per cent.", at both the places where they occur, the words "ten per cent.".
shall be substituted:]

Provided further that] where the amount of any contribution payable under this Act
involves a fraction of a rupee, the Scheme may provide for the rounding off of such
fraction to the nearest rupee, half of a rupee or quarter of a rupee.

7*[Explanation 1].--For the purposes of this 8*[section], dearness allowance shall be

deemed to include also the cash value of any food concession allowed to the employee.

9*[Explanation 2.--For the purposes of this 8*[section],

"retaining allowance" means an allowance payable for the time being to an employee of
any factory or other establishment during any period in which the establishment is not
working, for retaining his services.]

10* * * * *
---------------------------------------------------------------------
1. Subs. by Act 99 of 1976, s. 20, for "and the Family Pension
Scheme" (w.e.f. 1-8-1976).
2. The brackets and figure "(1)" omitted by Act 28 of 1963, s. 5.(w.e.f. 30-11-1963).
3. Subs. by Act 33 of 1988, s. 9 (w.e.f. 1-8-1988).
4. Subs. by Act 46 of 1960, s. 4, for "and the dearness allowance"
(w.e.f. 31-12-1960).
5. Ins. by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
6. Subs. by Act 48 of 1962, s. 2, for "Provided that" (w.e.f. 1-1-1963).
7. Original Explanation re-numbered as Explanation 1 by Act 46 of 1960, s. 4 (w.e.f. 31-
12-1960).
8. Subs. by Act 28 of 1963, s. 5, for "sub-section" (w.e.f. 30-11-
1963).
9. Ins. by s.4, Act 46 of 1960, (w.e.f. 31-12-1960).
10. Sub-sections (2) and (3) omitted by Act 28 of 1963, s. 5 (w.e.f.
30-11-1963). Sub-section (3) was ins. by Act 37 of 1953, s. 5.311.6A.

Employees Family Pension Scheme.

1*[6A. Employees Family Pension Scheme.- (1) The Central

Government may, by notification in the Official Gazette, frame a scheme to be called the
Employees Family Pension Scheme for the purpose of providing family pension and life
assurance benefits to the employees of any establishment or class of establishments to
which this Act applies.

(2) There shall be established, as soon as may be after the framing of the Family Pension
Scheme, a Family Pension Fund into which shall be paid from time to time in respect of
every such employee--

(a) such portion, not exceeding one-fourth, of the amount payable under section 6 as
contribution by the employer as well as the employee, as may be specified in the
Family Pension Scheme,

(b) such sums as are payable by the employer of an exempted establishment under sub-
section (6) of section 17, and

(c) such sums, being not less than the amount payable in pursuance of clause (a) out of
the employers contribution under section 6, as the Central Government may, after due
appropriation made by Parliament by law in this behalf, specify.

(3) The Family Pension Fund shall vest in and be administered by the Central Board.

(4) The Family Pension Scheme may provide for all or any of the matters specified in
Schedule III.

(5) The Family Pension Scheme may provide that any of its provisions shall take effect
either prospectively or retrospectively on such date as may be specified in this behalf in
that Scheme.

6B.

Special grant by Central Government.

6B. Special grant by Central Government.-The Central Government shall, after due
appropriation made by Parliament by law in this behalf, pay such further sums as may be
determined by it into the
Family Pension Fund to meet all the expenses in connection with the administration of
the Family Pension Scheme other than the expenses towards the cost of any benefits
provided by or under the said
Scheme.]

Employees Provident Funds Act 1995 (EMPLOYEES’ PENSION SCHEME)

EMPLOYEES’ PENSION SCHEME – 1995

Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-
95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial
principles for ensuring long term financial sustenance. The new Employees’ Pension Scheme-95,
repealed and replaced the erstwhile Family Pension Scheme, 1971. The assets and liabilities of the
erstwhile Pension Fund were transferred and merged with the new Pension Fund. The benefits and
entitlements to the members under the old scheme remain protected and continued under the new
Employees’ Pension Scheme-95.

APPLICATION AND COVERAGE

The Scheme was notified on 16.11.95 and made effective from that date with the provision for
retrospective application from 1.4.93 in selective cases. The Scheme on its introduction applied on
compulsory basis to all the new members of Provident Fund and the existing members who were
contributing to the Employees' Family Pension Scheme-1971. The existing members (as on 16.11.95)
of the Provident Fund who did not opt for joining the erstwhile Employees' Family Pension Scheme-
1971 and the beneficiaries under the erstwhile Employees' Family Pension Scheme-1971 in case of
death/exit occurring between 1.4.93 and 15.11.95 have option to join the new scheme.

CONTRIBUTION

No separate contribution is payable additionally by the member for the Pension Scheme benefits.
The new Pension Scheme, alike the old Employees' Family Pension Scheme, 1971 derives its
financial resource by partial diversion from the Provident Fund contribution, the rate being 8.33% in
lieu of 2.33% against the old ceased Family Pension Scheme-1971.The Central Government
continues contributing at the rate of 1.16% as before, on wages at the end of the year.

BENEFITS

Newly introduced Employees' Pension Scheme-95 provides for following benefit package:

1. Pension for life to the member, on superannuation/retirement and

invalidation.
2. To the members of the family upon death of the member:

a. Pension to Widow/Widower for life or till re-marriage.

b. To children/orphan, two at a time additionally upto 25 years of age
simultaneously with widow/widower pension.
c. Children/orphan with total and permanent disability shall be entitled
to payment of children pension or orphan pension as the case may be
irrespective of age and number of children in the family.
d. Facility for payment of pension to nominee in the event of member
who is unmarried or without any eligible family member to receive
pension, and
e. Facility for payment of pension to dependent father/mother in the
event the member dies leaving behind no eligible family members and
no nomination by such deceased member exist.

3. Facility for capital return (corpus accretion) on option formula basis

4. Commutation of pension up to 1/3rd of pension amount
5. Scheme Certificate to retain membership of the Scheme till attaining
the age of 58 years.

Superannuation/retirement pension under the new scheme will be payable on fulfilling:-

a. Minimum 10 years eligible service and

b. Attaining age of 58 years.
On ceasing employment earlier than 58 years, pension may be availed of by a member at his option,
before attaining the age of 58 years but not below 50 years. Such early pension will be subject to
discounting factor. However, no such age restriction or eligibility requirement shall apply for
pension entitlement on disablement or pension payable to the family members on death of the
member. Membership with one contribution is enough in such cases.

VALUATION OF PENSION FUND

The Pension Fund is evaluated by an Actuary on an annual basis. Based on valuation

recommendations, Central Government determines the amount of relief on pensions to existing
pensioners.

THE PAYMENT OF GRATUITY ACT, 1972

Year : 1972

Act :

THE PAYMENT OF GRATUITY ACT, 1972.ACT NO. 39 OF 1972.[21st August, 1972.]

An Act to provide for a Scheme for the payment of gratuity to employees engaged in
factories, mines, oilfields, plantations, ports, railway companies, shops or other
establishments and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Twenty-third Year of the

Republic of India as follows:--

1.Short title, extent, application and commencement.

1. Short title, extent, application and commencement.- (1) This

Act may be called the Payment of Gratuity Act, 1972.(2) it extends to the whole of India:

Provided that in so far as it relates to plantations or ports, it shall not extend to the State
of Jammu and Kashmir.

(3) It shall apply to--

(a) every factory, mine, oilfield, plantation, port and railway company;

(b) every shop or establishment within the meaning of any law for the time being in force
in relation to shops and establishments in a State, in which ten or more persons are
employed, or were employed, on any day of the preceding twelve months;

(c) such other establishments or class of establishments, in which ten or more employees
are employed, or were employed, on any day of the preceding twelve months, as the
Central Government may, by notification, specify in this behalf.

1*[(3A) A shop or establishment to which this Act has become applicable shall continue
to be governed by this Act notwithstanding that the number of persons employed therein
at any time after it has become so applicable falls below ten.]

(4) It shall come into force on such date2* as the Central

Government may, by notification, appoint.

2.Definitions.

2. Definitions.- In this Act, unless the context otherwise requires,--

(a) "appropriate Government" means,--

(i) in relation to an establishment--

(a) belonging to, or under the control of, the Central Government,

(b) having branches in more than one State,

---------------------------------------------------------------------
1. Ins. by Act 26 of 1984, s. 2.2. 16th September, 1972; vide Notification No. S. O. 601(E),
dated
16-9-1972, see Gazette of India, 1972, Extraordinary, Pt. II, Sec. 3(ii), p. 1641.524.(c) of
a factory belonging to, or under the control of, the Central Government,

(d) of a major port, mine, oilfield or railway company, the Central Government,

(ii) in any other case, the State Government;

(b) "completed year of service" means continuous service for one year;

1*[(c) "continuous service" means continuous service as defined in section 2A;]

(d) "controlling authority" means an authority appointed by the appropriate Government

under section 3;

(e) "employee" means any person (other than an apprentice)

employed on wages 2*** in any establishment, factory, mine, oilfield, plantation, port,
railway company or shop, to do any skilled, semi- skilled, or unskilled, manual,
supervisory, technical or clerical work, whether the terms of such employment are
express or implied, 3*[and whether or not such person is employed in a managerial or
administrative capacity, but does not include any such person who holds a post under the
Central Government or a State Government and is governed by any other Act or by any
rules providing for payment of gratuity.]
---------------------------------------------------------------------
1. Subs. by Act 26 of 1984, s. 3.2. Omotted by Act 34 of 1994, s. 4 (w.e.f. 25-5-1994).
3. Subs. by Act 25 of 1984, s. 2 (w.e.f. 1-7-1984).

525.(f) "employer" means, in relation to any establishment, factory, mine, oilfield,

plantation, port, railway company or shop--

(i) belonging to, or under the control of, the Central Government or a State Government,
a person or authority appointed by the appropriate
Government for the supervision and control of employees, or where no person or
authority has been so appointed, the head of the Ministry or the
Department concerned,

(ii) belonging to, or under the control of, any local authority, the person appointed by
such authority for the supervision and control of employees or where no person has been
so appointed, the chief executive officer of the local authority,

(iii) in any other case, the person, who, or the authority which, has the ultimate control
over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway
company or shop, and where the said affairs are entrusted to any other person, whether
called a manager, managing director or by any other name, such person;

(g) "factory" has the meaning assigned to it in clause (m)

of section 2 of the Factories Act, 1948 (63 of 1948)

(h) "family", in relation to an employee, shall be deemed to consist of--

(i) in the case of a male employee, himself, his wife, his children, whether married or
unmarried, his dependent parents 1*[and the dependent parents of his wife and the
widow] and children of his predeceased son, if any,

(ii) in the case of a female employee, herself, her husband, her children, whether married
or unmarried, her dependent parents and the dependent parents of her husband and the
widow and children of her predeceased son, if any.
---------------------------------------------------------------------
1. Subs. by Act 22 of 1987, s. 2 (w.e.f. 1-10-1987).

526.1* * * * *

Explanation.--Where the personal law of an employee permits the adoption by him of a

child, any child lawfully adopted by him shall be deemed to be included in his family, and
where a child of an employee has been adopted by another person and such adoption is,
under the personal law of the person making such adoption, lawful, such child shall be
deemed to be excluded from the family of the employee;

(i) "major port" has the meaning assigned to it in clause (8) of section 3 of the Indian
Ports
Act, 1908 (15 of 1908)

(j) "mine" has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of
the
Mines Act, 1952 (35 of 1952)

(k) "notification" means a notification published in the Official Gazette;

(l) "oilfield" has the meaning assigned to it in clause (e) of section 3 of the Oilfields
(Regulation and Development) Act, 1948 (53 of
1948)

(m) "plantation" has the meaning assigned to it in clause (f) of section 2 of the
Plantations
Labour Act, 1951 (69 of 1951)

(n) "port" has the meaning assigned to it in clause (4) of section 3 of the Indian Ports
Act,
1908 (15 of 1908)

(o) "prescribed" means prescribed by rules made under this Act;

(p) "railway company" has the meaning assigned to it in clause (5) of section 3 of the
Indian Railways Act, 1890 (9 of 1890)

(q) "retirement" means termination of the service of an employee otherwise than on

superannuation;

1*[(r) "superannuation", in relation to an employee, means the attainment by the

employee of such age as is fixed in the contract or conditions of service as the age on the
attainment of which the employee shall vacate the employment;]
---------------------------------------------------------------------
2. Subs. by Act 25 of 1984, s. 2 (w.e.f. 1-7-1984).
1. Omitted by Act 22 of 1987, s. 2 (w.e.f. 1-10-1987).

527.(s) "wages" means all emoluments which are earned by an employee while on duty
or on leave in accordance with the terms and conditions of his employment and which are
paid or are payable to him in cash and includes dearness allowance but does not include
any bonus, commission, house rent allowance, overtime wages and any other allowance.

2A.

Continuous service.

2*["2A. Continuous service.- For the purposes of this Act,--

(1) an employee shall be said to be in continuous service for a period if he has, for that
period, been in uninterrupted service,including service which may be interrupted on
account of sickness, accident, leave, absence from duty without leave
(not being absence in respect of which an order 3*** treating the absence as break in
service has been passed in accordance with the standing orders, rules or regulations
governing the employees of the establishment), lay-off, strike or a lock-out or cessation
of work not due to any fault of the employee, whether such uninterrupted or interrupted
service was rendered before or after the commencement of this Act;

(2) where an employee (not being an employee employed in a seasonal establishment) is

not in continuous service within the meaning of clause (1), for any period of one year or
six months, he shall be deemed to be in continuous service under the employer--

(a) for the said period of one year, if the employee during the period of twelve calendar
months preceding the date with reference to which calculation is to be made, has actually
worked under the employer for not less than--

(i) one hundred and ninety days, in the case of an employee employed below the ground
in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar
months preceding the date with reference to which the calculation is to be made, has
actually worked under the employer for not less than--

(i) ninety-five days, in the case of an employee employed below the ground in a mine or
in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case;

3*[Explanation.--For the purposes of clause (2), the number of days on which an

employee has actually worked under an employer shall include the days on which--

(i) he has been laid-off under an agreement or as permitted by standing orders made
under the Industrial Employment (Standing
Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes
Act, 1947 or (14 of 1947), under any other law applicable to the establishment;

(ii) he has been on leave with full wages, earned in the previous year;

(iii) he has been absent due to temporary disablement caused by accident arising out of
and in the course of his employment;
and

(iv) in the case of a female, she has been on maternity leave; so, however, that the total
period of such maternity leave does not exceed twelve weeks.]

(3) where an employee, employed in a seasonal establishment, is not in continuous

service within the meaning of clause (1), for any period of one year or six months, he
shall be deemed to be in continuous service under the employer for such period if he has
actually worked for not less than seventy-five per cent. of the number of days on which
the establishment was in operation during such period.]

3.Controlling authority.

3. Controlling authority.- The appropriate Government may, by notification, appoint any

officer to be a controlling authority, who shall be responsible for the administration of
this Act and different controlling authorities may be appointed for different areas.

4.Payment of gratuity.

4. Payment of gratuity.- (1) Gratuity shall be payable to an employee on the termination

of his employment after he has rendered continuous service for not less than five years,--

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary
where the termination of the employment of any employee is due to death or
disablement:

4*[Provided further that in the case of death of the employee, gratuity payable to him
shall be paid to his nominee or, if no nomination has been made, to his heirs, and where
any such nominees or heirs is a minor, the share of such minor, shall be deposited with
the controlling authority who shall invest the same for the benefit of such minor in such
bank or other financial institution, as may be prescribed, until such minor attains
majority.]

Explanation.--For the purposes of this section, disablement means such disablement as

incapacitates an employee for the work which he was capable of performing before the
accident or disease resulting in such disablement.

(2) For every completed year of service or part thereof in excess of six months, the
employer shall pay gratuity to an employee at the rate of fifteen days wages based on the
rate of wages last drawn by the employee concerned:

Provided that in the case of a piece-rated employee, daily wages shall be computed on
the average of the total wages received by him for a period
---------------------------------------------------------------------
1. Ins. by Act 26 of 1984, s. 4.2. Omitted by Act 22 of 1987 s. 3 (w.e.f. 1-10-1987).
3. Added by s. 3, ibid. (w.e.f. 1-10-1987).
4. Subs. by Act 22 of 1987, s. 4 (w.e.f.- - - - -).

528.of three months immediately preceding the termination of his employment, and, for
this purpose, the wages paid for any overtime work shall not be taken into account:

Provided further that in the case of 1*["an employee who is employed in a seasonal
establishment and who is not so employed throughout the year"], the employer shall pay
the gratuity at the rate of seven days wages for each season.

2*[Explanation.--In the case of a monthly rated employee, the fifteen days wages shall
be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and
multiplying the quotient by fifteen.]

(3) The amount of gratuity payable to an employee shall not exceed 4*[one lakh rupees].

(4) For the purpose of computing the gratuity payable to an employee who is employed,
after his disablement, on reduced wages, his wages for the period preceding his
disablement shall be taken to be the wages received by him during that period, and his
wages for the period subsequent to his disablement shall be taken to be the wages as so
reduced.

(5) Nothing in this section shall affect the right of an employee receive better terms of
gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1),--

(a) the gratuity of an employee, whose services have been terminated for any act, wilful
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 1*[may be wholly or partially forfeited]--

(i) if the services of such employee have been terminated for his riotous or disorderly
conduct or any other act violence on his part, or

(ii) if the services of such employee have been terminated for any act which constitutes
an offence involving moral turpitude, provided that such offence is committed by him in
the course of his employment.

5* * * * *

4A.

Compulsory insurance.

6*[4A. Compulsory insurance.- (1) With effect from such date as may be notified by the
appropriate Government in this behalf, every employer, other than an employer or an
establishment belonging to, or under the control of, the Central Government or a State
Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the
manner prescribed, for his liability for payment towards the gratuity under this Act, from
the Life Insurance
Corporation of India established under the Life Insurance Corporation of India Act, 1956
(9 of 1956) or any other prescribed insurer:

Provided that different dates may be appointed for different establishments or class of
establishments or for different areas.

(2) The appropriate Government may, subject to such conditions as may be prescribed,
exempt every employer who had already established an approved gratuity fund in respect
of his employees and who desires to continue such arrangement, and every employer
employing five hundred or more persons who establishes an approved gratuity fund in
the manner prescribed from the provisions of sub-section (1).

(3) For the purpose of effectively implementing the provisions of this section, every
employer shall within such time as may be prescribed get his establishment registered
with the controlling authority in the prescribed manner and no employer shall be
registered under the provisions of this section unless he has taken an insurance referred
to in sub-section (1) or has established an approved gratuity fund referred to in sub-
section (2).

(4) The appropriate Government may, by notification, make rules to give effect to the
provisions of this section and such rules may provide for the composition of the Board of
Trustees of the approved gratuity fund and for the recovery by the controlling authority
of the amount of the gratuity payable to an employee from the Life Insurance
Corporation of India or any other insurer with whom an insurance has been taken under
sub-section (1), or as the case may be, the Board of
Trustees of the approved gratuity fund.

(5) Where an employer fails to make any payment by way of premium to the insurance
referred to in sub-section (1) or by way of contribution to an approved gratuity fund
referred to in sub-section
(2), he shall be liable to pay the amount of gratuity due under this
Act (including interest, if any, for delayed payments) forthwith to the controlling
authority.

(6) Whoever contravenes the provisions of sub-section (5) shall be punishable with fine
which may extend to ten thousand rupees and in the case of a continuing offence with a
further fine which may extend to one thousand rupees for each day during which the
offence continues.

Explanation.--In this section "approved gratuity fund" shall have the same meaning as in
clause (5) of section 2 of the Income-tax Act,
1961 (43 of 1961).]

5.Power to exempt.

5. Power to exempt.- 7*[(1)] The appropriate Government may, by notification, and

subject to such conditions as may be specified in the notification, exempt any
establishment, factory, mine, oilfield, plantation, port, railway company or shop to which
this Act applies from the operation of the provisions of this Act if, in the opinion of the
appropriate Government, the employees in such establishment, factory, mine, oilfield,
plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits
not less favourable than the benefits conferred under this Act.

8*[(2) The appropriate Government may, by notification and subject to such conditions
as may be specified in the notification, exempt any employee or class of employees
employed in any establishment, factory, mine, oilfield, plantation, port, railway company
or shop to which this Act applies from the operation of the provisions of this Act, if, in the
opinion of the appropriate
Government, such employee or class of employees are in receipt of gratuity or pensionary
benefits not less favourable than the benefits conferred under this Act.]

9*[(3) A notification issued under sub-section (1) or sub-

section (2) may be issued retrospectively a date not earlier than the date of
commencement of this Act, but no such notification shall be issued so as to prejudicially
affect the interests of any person.]
---------------------------------------------------------------------
1. Subs. by Act 25 of 1984, s. 3 (w.e.f. 1-7-1984).
2. Ins. by Act 22 of 1987, s. 4 (w.e.f. 1-10-1987).
3. Subs. by s. 4 ibid., for "twenty months wages" (w.e.f.
1-10-1997).
4. Subs. by Act 34 of 199, s. 3, for "fifthy thousand" (w.e.f.
24-5-1994).
5. Sub-section (7) Ins. by Act 25 of 1984, s. 3 and Omitted by Act
34 of 1994, s. 3 (w.e.f. 25-5-1994).
6. Ins. by 22 of 1987, s. 5, (w.e.f. ....... ).
7. Re-numbered by Act 26 of 1984, s. 5.8. Ins. by s. 5, ibid.
9. Ins. by Act 22 of 1987, s. 6 (w.e.f. 1-10-1987).

529.6.Nomination.

6. Nomination.- (1) Each employee, who has completed one year of service, shall make,
within such time, in such form and in such manner, as may be prescribed, nomination for
the purpose of the second proviso to sub-section (1) of section 4.(2) An employee may, in
his nomination, distribute the amount of gratuity payable to him under this Act amongst
more than one nominee.

(3) If an employee has a family at the time of making a nomination, the nomination shall
be made in favour of one or more members of his family, and any nomination made by
such employee in favour of a person who is not a member of his family shall be void.

(4) If at the time of making a nomination the employee has no family, the nomination
may be made in favour of any person or persons but if the employee subsequently
acquires a family, such nomination shall forthwith become invalid and the employee shall
make, within such time as may be prescribed, a fresh nomination in favour of one or more
members of his family.

(5) A nomination may, subject to the provisions of sub-sections

(3) and (4), be modified by an employee at any time, after giving to his employer a
written notice in such form and in such manner as may be prescribed, of his intention to
do so.

(6) If a nominee predeceases the employee, the interest of the nominee shall revert to
the employee who shall make a fresh nomination, in the prescribed form, in respect of
such interest.

(7) Every nomination, fresh nomination or alteration of nomination, as the case may be,
shall be sent by the employee to his employer, who shall keep the same in his safe
custody.

7.Determination of the amount of gratuity.

7. Determination of the amount of gratuity.- (1) A person who is eligible for payment of
gratuity under this Act or any person authorised, in writing, to act on his behalf shall send
a written application to the employer, within such time and in such form, as may be
prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application
referred to in sub-section (1) has been made or not, determine the amount of gratuity
and give notice in writing to the person to whom the gratuity is payable and also to the
controlling authority specifying the amount of gratuity so determined.
1*[(3) The employer shall arrange to pay the amount of gratuity within thirty days from
the date it becomes payable to the person to whom the gratuity is payable.

(3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer
within the period specified in sub-section
(3), the employer shall pay, from the date on which the gratuity becomes payable to the
date on which it is paid, simple interest at such rate, not exceeding the rate notified by
the Central Government from time to time for repayment of long-term deposits, as that
Government may, by notification specify:

Provided that no such interest shall be payable if the delay in the payment is due to the
fault of the employee and the employer has obtained permission in writing from the
controlling authority for the delayed payment on this ground.]
---------------------------------------------------------------------
1. Subs. by Act 22 of 1987, s. 7 (w.e.f. 1-10-1987).

530

(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under
this Act or as to the admissibility of any claim of, or in relation to, an employee for
payment of gratuity, or as to the person entitled to receive the gratuity, the employer
shall deposit with the controlling authority such amount as he admits to be payable by
him as gratuity.

2*[(b) Where there is a dispute with regard to any matter or mattes specified in clause
(a), the employer or employee or any other person raising the dispute may make an
application to the controlling authority for deciding the dispute.]

3*[(c) The controlling authority shall, after due inquiry and after giving the parties to the
dispute a reasonable opportunity of being heard, determine the matter or matters in
dispute and if, as a result of such inquiry any amount is found to be payable to the
employee, the controlling authority shall direct the employer to pay such amount or, as
the case may be, such amount as reduced by the amount already deposited by the
employer.]

4*[(d)] The controlling authority shall pay the amount deposited, including the excess
amount, if any, deposited by the employer, to the person entitled thereto.

4*[(e)] As soon as may be after a deposit is made under clause

(a), the controlling authority shall pay the amount of the deposit--

(i) to the applicant where he is the employee; or

(ii) where the applicant is not the employee, to the

1*[nominee or, as the case may be, the guardian of such nominee or] heir of the
employee if the controlling authority is satisfied that there is no dispute as to the right of
the applicant to receive the amount of gratuity.

(5) For the purpose of conducting an inquiry under sub-section

(4), the controlling authority shall have the same powers as are vested in a court, while
trying a suit, under the Code of Civil
Procedure, 1908 (5 of 1908), in respect of the following matters, namely:--

(a) enforcing the attendance of any person or examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses.

(6) Any inquiry under this section shall be a judicial proceeding within the meaning of
sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of
1860).
---------------------------------------------------------------------
1. Explanation Omitted by Act 25 of 1984, s. 4 (w.e.f. 1-7-84).
2. Ins. by s. 4, ibid. (w.e.f. 1-7-1984).
3. Subs. by s. 4, ibid. (w.e.f. 1-7-1984).
4. Re-letted by s. 4, ibid. (w.e.f 1-7-1984).

531.(7) Any person aggrieved by an order under sub-section (4) may, within sixty days
from the date of the receipt of the order, prefer an appeal to the appropriate Government
or such other authority as may be specified by the appropriate Government in this behalf:

Provided that the appropriate Government or the appellate authority, as the case may be,
may, if it is satisfied that the appellant was prevented by sufficient cause from preferring
the appeal within the said period of sixty days, extend the said period by a further period
of sixty days:

1*[Provided further that no appeal by an employer shall be admitted unless at the time of
preferring the appeal, the appellant either produces a certificate of the controlling
authority to the effect that the appellant has deposited with him an amount equal to the
amount of gratuity required to be deposited under sub-section (4), or deposits with the
appellate authority such amount.]

(8) The appropriate Government or the appellate authority, as the case may be, may,
after giving the parties to the appeal a reasonable opportunity of being heard, confirm,
modify or reverse the decision of the controlling authority.

7A.

Inspectors.

2*[7A. Inspectors.- (1) The appropriate Government may, by notification, appoint as

many Inspectors, as it deems fit, for the purposes of this Act.

(2) The appropriate Government may, by general or special order, define the area to
which the authority of an Inspector so appointed shall extend and where two or more
Inspectors are appointed for the same area, also provide by such order, for the
distribution or allocation of work to be performed by them under this Act.
(3) Every Inspector shall be deemed to be a public servant within the meaning of section
21 of the Indian Penal Code (45 of 1860).

7B.

Powers of Inspectors.

7B. Powers of Inspectors.- (1) Subject to any rules made by the appropriate Government
in this behalf, an Inspector may, for the purpose of ascertaining whether any of the
provisions of this Act or the conditions, if any, of any exemption granted thereunder, have
been complied with, exercise all or any of the following powers, namely:--

(a) require an employer to furnish such information as he may consider necessary;

(b) enter and inspect, at all reasonable hours, with such assistants (if any), being
persons in the service of the
Government or local or any public authority, as he thinks fit, any premises of or place in
any factory, mine, oilfield, plantation, port, railway company, shop or other establishment
to which this Act, applies, for the purpose of examining any register, record or notice or
other document required to be kept or exhibited under this Act or the rules made
thereunder, or otherwise kept or exhibited in relation to the employment of any person or
the payment of gratuity to the employees, and require the production thereof for
inspection;

(c) examine with respect to any matter relevant to any of the purposes aforesaid, the
employer or any person whom he finds in such premises or place and who, he has
reasonable cause to believe, is an employee employed therein;

(d) make copies of, or take extracts from, any register, record, notice or other document,
as he may consider relevant, and where he has reason to believe that any offence under
this
Act has been committed by an employer, search and seize with such assistance as he may
think fit, such register, record, notice or other document as he may consider relevant in
respect of that offence;

(e) exercise such other powers as may be prescribed.

(2) Any person required to produce any register, record, notice or other document or to
give any information by an Inspector under sub-section (1) shall be deemed to be legally
bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code (45
of
1860).

(3) The provisions of the Code of Criminal Procedure, 1973 (2 of

1974) shall so far as may be, apply to any search or seizure under this section as they
apply to any search or seizure made under the authority of a warrant issued under
section 94 of that Code.]

8.Recovery of gratuity.
8. Recovery of gratuity.- If the amount of gratuity payable under this Act is not paid by
the employer, within the prescribed time, to the person entitled thereto, the controlling
authority shall, on an application made to it in this behalf by the aggrieved person, issue
a certificate for that amount to the Collector, who shall recover the same, together with
compound interest thereon 1*[at such rate as the
Central Government may, by notification, specify], from the date of expiry of the
prescribed time, as arrears of land revenue and pay the same to the person entitled
thereto:

4*[Provided that the controlling authority shall, before issuing a certificate under this
section, give the employer a reasonable opportunity of showing cause against the issue of
such certificate:

Provided further that the amount of interest payable under this section shall, in no case
exceed the amount of gratuity payable under this Act.]

9.Penalties.

9. Penalties.- (1) Whoever, for the purpose of avoiding any payment to be made by
himself under this Act or of enabling any other person to avoid such payment, knowingly
makes or causes to be made any false statement or false representation shall be
punishable with imprisonment for a term which may extend to six months, or with fine
which may extend to 5*[ten thousand rupees], or with both.

(2) An employer who contravenes, or makes default in complying with, any of the
provisions of this Act or any rule or order made thereunder shall be punishable with
imprisonment for a term 5*[which shall not be less than three months but which may
extend to one year, or with fine which shall not be less than ten thousand rupees but
which may extend to twenty thousand rupees, or with both].

Provided that where the offence relates to non-payment of any gratuity payable under
this Act, the employer shall be punishable with imprisonment for a term which shall not
be less than 5*[six months but which may extend to two years] unless the court trying
the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term of
imprisonment or the imposition of a fine would meet the ends of justice.

10.Exemption of employer from liability in certain cases.

10. Exemption of employer from liability in certain cases.- Where an employer is charged
with an offence punishable under this Act, he shall be entitled, upon complaint duly made
by him and on giving to the complainant not less than three clear days notice in writing of
his intention to do so, to have any other person whom he charges as
---------------------------------------------------------------------
1. Ins. by Act 25 of 1984, s. 4 (w.e.f. 1-7-1984).
2. Ins. by s. 5, ibid. (w.e.f. 1-7-1984).
3. Subs. by Act 22 of 1987, s. 8 (w.e.f. 1-10-1987).
4. Added by s. 8, ibid. (w.e.f. 1-10-1987).
5. Subs. by s. 9, ibid. (w.e.f. 1-10-1987).

532.the actual offender brought before the court at the time appointed for hearing the
charge; and if, after the commission of the offence has been proved, the employer proves
to the satisfaction of the court--

(a) that he has used due diligence to enforce the execution of this Act, and

(b) that the said other person committed the offence in question without his knowledge,
consent or connivance,

that other person shall be convicted of the offence and shall be liable to the like
punishment as if he were the employer and the employer shall be discharged from any
liability under this Act in respect of such offence:

Provided that in seeking to prove as aforesaid, the employer may be examined on oath
and his evidence and that of any witness whom he calls in his support shall be subject to
cross-examination on behalf of the person he charges as the actual offender and by the
prosecutor:

Provided further that, if the person charged as the actual offender by the employer
cannot be brought before the court at the time appointed for hearing the charge, the
court shall adjourn the hearing from time to time for a period not exceeding three months
and if by the end of the said period the person charged as the actual offender cannot still
be brought before the court, the court shall proceed to hear the charge against the
employer and shall, if the offence be proved, convict the employer.

11.Cognizance of offences.

11. Cognizance of offences.-(1) No court shall take cognizance of any offence punishable
under this Act save on a complaint made by or under the authority of the appropriate
Government:

Provided that where the amount of gratuity has not been paid, or recovered, within six
months from the expiry of the prescribed time, the appropriate Government shall
authorise the controlling authority to make a complaint against the employer, whereupon
the controlling authority shall, within fifteen days from the date of such authorisation,
make such complaint to a magistrate having jurisdiction to try the offence.

(2) No court inferior to that of a 1*[Metropolitain magistrate or a Judicial Magistrate of

the first class] shall try any offence punishable under this Act.

12.Protection of action taken in good faith.

12. Protection of action taken in good faith.- No suit or other legal proceeding shall lie
against the controlling authority or any other person in respect of anything which is in
good faith done or intended to be done under this Act or any rule or order made
thereunder.

13.Protection of gratuity.

13. Protection of gratuity.- No gratuity payable under this Act

2*[and no gratuity payable to an employee employed in any establishment, factory, mine,
oilfield, plantation, port, railway company or shop exempted under section 5] shall be
liable to attachment in execution of any decree or order of any civil, revenue or criminal
court.
---------------------------------------------------------------------
1. Subs. by Act 34 of 1994, s. 4 (w.e.f. 24-5-1994).
2. Ins. by Act 25 of 1984, s. 6 (w.e.f. 1-7-1984).

533.14.Act to override other enactments, etc.

14. Act to override other enactments, etc.-The provisions of this

Act or any rule made thereunder shall have effect notwithstanding anything inconsistent
therewith contained in any enactment other than this Act or in any instrument or contract
having effect by virtue of any enactment other than this Act.

15.Power to make rules.

15. Power to make rules.-(1) The appropriate Government may, by notification, make
rules for the purpose of carrying out the provisions of this Act.

(2) Every rule made by the Central Government under this Act shall be laid, as soon as
may be after it is made, before each House of Parliament while it is in session, for a total
period of thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the rule
or both Houses agree that the rule should not be made, the rule shall, thereafter, have
effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.

Module –IV

THE TRADE UNIONS ACT, 1926

Introduction
The origin of the passing of Trade Union Act in India was the historic Buckingham
Mills
Case of 1920 in which the Madras High Court granted an interim injunction against
the Strike Committee of Madras Labour Union forbidding them to induce certain
workers to break their contract of employment by refusing to return to work. Trade
Union leaders found that they were liable to prosecution and imprisonment for
bonafide union activities and it was felt that some legislation for the protection of
trade unionism was necessary. In March, 1921, Mr.N.M.Joshi, the then General
Secretary of the all India Trade Union Congress successfully moved a resolution in
the Central Legislative Assembly that Government should introduce legislation for
registration and protection of trade unions. But opposition from employers to
adoption of such measure was so great that it was only in 1926 that Trade Union Act
was passed.
Object of the Act
The object of passing the Act was to make necessary provisions in regard to the
registration of Trade Unions and to define the law relating to registered Trade
Unions. The Royal Commission on Labour in India observed that the object is to
give trade unions the necessary protection from civil suits and criminal laws relating
to conspiracy in order to enable them to carry on their legitimate activities.
The Act extends to the whole of India including the state of Jammu and Kashmir. It
came
into force on the first day of June, 1927.
Trade Dispute
A trade dispute means any dispute:
(a) between employers and workmen
(b) between workmen and workmen
(c) between employers and employers
Any such dispute as mentioned to be a Trade Dispute must also be associated with –
(a) the employment
(b) non-employment
(c) the terms of employment
(d) the conditions of labour of any person
The definition of Trade Dispute in this Act is almost similar to the definition
of Industrial Dispute given in the Industrial Disputes Act, 1947. In Trade Dispute, it
is
necessary that there must be a demand from one party and refusal to accept those
demands by
other party. There can be real and substantial between parties to such dispute.
Trade Union
The term trade union can be expressed both in an ordinary sense and in broad
sense. In
ordinary sense it is a combination of workmen and in a broader sense it includes
combination
of employers and federation of two or more such combinations. The trade union
means: Any combination whether temporary or permanent formed for the purpose
of regarding
relations between –
(a) workmen and employers
(b) workmen and workmen
(c) employers and employers
The above combinations put restrictions on the conduct of any trade or
business but certain agreements given below have been excluded from the scope of
the term trade union.
(a) Agreement between partners in a business
(b) Agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft.
Similarly an association whose main object was to acquire patent right was held not
to be a trade union. Similarly federation of teachers cannot be referred as
association of trade union for teachers not being in the employment of industry.
Trade union should send an application for registration to the Registrar and shall
be
accompanied by the following:
- Name and addresses of members making the application.
- The name of the Trade Union and address of its head office
- The titles, names, ages, addresses and office bearers of the Trade Union
- General statement of the assets and liabilities of the Trade Union, if the union is in
existence for over one year. The Trade Union can be registered only under the
Trade Unions Act, 1926 and the registration of the Trade Unions under any other
Act such as the following shall be void:
- The Societies Registration Act, 1860
- The Cooperative Societies Act, 1912
- The Companies Act, 1956
The registration of Trade Union is not legally necessary but it brings certain
advantages which are:
- It becomes a corporate body by name
- It can enter into a contract
- It attains a legal entity
- It can sue and be sued in its registered name
The registrar can cancel or withdraw the registration and can exercise power on
Trade
Unions for the following issues where:
- Certificate of registration has been obtained by f\fraud or mistake
- Trade Union has ceased to exist
- Trade Union has violated any provision of this Act
- The primary objects of the Union are no longer statutory objects
The Trade Union can request the registrar to cancel their registration after the
approval of the general meeting of Trade Unions or majority of members of Trade
Union.
The Registrar must give atleast two months notice in writing giving the grounds on
which he proposes to cancel the certificate of registration. Registration confers on
the Trade Unions certain rights and privileges which are as follows:
1. Body corporate
2. Separate fund to political purposes
3. Immunity from criminal conspiracy
4. Immunity from civil suit
5. Enforceability of agreements
6. Right to amalgamate
7. Right to inspect books of Trade Union

2.2 REGISTRATION OF TRADE UNIONS

Appointment of Registrars (Section 3)
As regards registration of a trade union, the Act empowers the appropriate
Government to
appoint a person to be the Registrar of Trade Union for each state. The appropriate
Government may appoint as many additional and deputy registrars trade unions as
it thinks fit. They shall work under the superintendence and direction of the
Registrar.
The appropriate Government shall specify and define the local limits within which
any
additional and Deputy Registrar shall exercise and discharge his powers and
functions.
Mode of Registration
A Trade Union can be registered only under the Trade Union Act., 1926. The
Societies
Registration Act, 1860, the Co-operative Societies Act, 1012, and the Companies
Act, 1956, shall not apply to any registered Trade Union, and the registration of a
Trade Union under any such Act shall be void (Section 14)
Any seven or more members of a Trade Union may apply for registration of the
Trade Union. All the members applying for registration must subscribe their names
to the rules of the Trade Union and also comply with the provisions of the Act
relating to registration.
Application for Registration (Section 5)
Every application for registration of a Trade Union shall be made to Registrar. It
shall be
accompanied by a copy of the rules containing matters as given in Section 6. It also
contains a statement of the following particulars.
(a) the names, occupations and addresses of members making the application
(b) the name of the Trade Union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the office-bearers of the
Trade Union Where a Trade Union has been in existence for more than one year
before its registration, a general statement of the assets and liabilities of the Trade
Union in the
prescribed form must be submitted along with the application.
Rules of Trade Union – To provide the following (Section 6)
(a) Name of the Trade Union
(b) Objects
(c) Purposes for which the general funds shall be applicable
(d) Maintenance of a list of its members – facilities for its inspection
(e) Admission of the number of honorary or temporary members
(f) Payment of subscription – not less than 25 paise per month per member
(g) Conditions under which members can enjoy the benefits and under which fines
may be imposed on them
(h) Manner in which rules may be amended
(i) Manner of appointment and removal of the members
(j) Safe custody of the funds, an annual audit, facilities for inspective of the accounts
(k) Manner in which Trade Union may be dissolved
Registration (Section 7)
The Registrar will register the Trade Union, if he is satisfied that the trade union
has
complied with all the requirements of this Act in regard to registration. The
Registrar shall register; the Trade Union by making necessary entries in the
register, to be maintained in such form as may be prescribed. The particulars
relating to the Trade Union contained in the statement accompanying the
application for registration shall be entered in the register. Where the Registrar
takes no action on an application for more than three months, writ under Article
226 can be issued commanding the Registrar to deal with the application.
Certificate of Registration (Section 9)
The Registrar, on registering a Trade Union, shall issue a certificate of registration
which
shall be conclusive evidence that the Trade Union has been duly registered under
the Act.
It is obligatory on the part of the Registrar to register a Trade Union provided the
provisions of the Act are complied with. He is not entitled to question whether the
Union is lawful or unlawful.
Advantages of Registration
Although it is not legally necessary for a Union to be registered, registration does
provide it with certain advantages. Some of the advantages gained by registration as
given in Section 13 are as under:
1. A Trade Union becomes a body corporate by name under which it is registered
and it a legal entity distinct from its members of which it is composed.
2. It gives perpetual succession and common seal.
3. It can acquire and hold both movable and immovable property.
4. It can enter into a contract.
5. It can sue and be sued in its registered name.
Cancellation of Registration (Section 10)
Power to withdraw or cancel registration of a Trade Union is given to the Registrar.
The
Registrar can exercise the power in the following case, namely:
1. On the application of the Trade Union for such a course
2. Where the certificate of registration has been obtained by fraud or mistake
3. Where the Trade Union ceased to exist
4. Where the Trade Union has willfully and after notice from the Registrar allowed
any rule to continue in force which is inconsistent with the provision of this Act
5. Where the Trade Union has willfully and after notice from the registrar violated
any provisions of this Act
6. Where the primary objects of the Union are no longer statutory objects
Where the Union desires to have its certificate of registration withdrawn or
cancelled, the Registrar on receiving much application, must, before granting the
application to satisfy himself that the withdrawal or cancellation was approved by a
general meeting of the Trade Union or if it was not so approved, it had the approval
of the majority of the members of the Trade Union. The Registrar is not competent
to cancel registration of a Trade Union without giving requisite notice and giving an
opportunity to the Trade Union to show cause against the proposed action. The
Registrar must be given not less than two months, previous notice in writing giving
the grounds on which it is proposed to withdraw or cancel the certificate of
registration. No such notice is required where such application is made by the Trade
Union itself.
Appeal (Section 11)
Section 11 of the Act gives a limited right of appeal from the decisions of the
Registrar. Any person who is aggrieved by the refusal of the Registrar to register a
Trade Union or the withdrawal or cancellation of certificate of registration is given
the right of appeal. The appeal must be within 60 days of the date of which
Registrar passed the order against which appeal is made.
Trade Union can be restrained by injection from applying its funds for an
unauthorized object or for an unlawful purpose, because such expenditure shall be
ultra virus the Act. Thus it would be illegal it devote Union funds in support of any
illegal strike or lock out.
Rights and Privileges
Registration confers on the Trade Union certain rights and privileges. Similarly
some rights are granted to the member of a registered Trade Union both collectively
and individually. These are as under:
Body Corporate (Section 13)
Every registered Trade Union is a body corporate by the name under which it is
registered. A registered Trade Union is an artificial person in the eyes of law
capable of enjoying rights like a natural person. It has a perpetual succession and a
common seal. It has the right to acquire and hold both movable and immovable
property. It can enter into a contract and can sue and be sued in its registered name.
The Objects on which General Funds may be spent (Section 15)
(a) Salaries, allowances and expenses to office bearers
(b) Expenses for administration and audit of the accounts of funds of the union
(c) Towards Prosecution or defence of any legal proceeding to which the union or its
member is a party
(d) The conduct of trade disputes on behalf of the union or its members
(e) Compensation for the members at the time of dispute.
2.3 Penalties and Procedure
Under Sections 31 to 33 the Registrar of Trade Unions is empowered to impose
penalty on the trade union for default in submitting returns or for supply of false
information or
statements.
(i) Failure to submit returns (Section 31):
(a) failure to give notice which is required to be given by a registered trade union;
(b) failure to send any return, required to be sent by a registered trade union; or
(c) failure to send any documents, required to be sent by a registered trade union.
Every office-bearer or other member of the executive committee is bound to
give such information, or send statements or documents as required under the
provision of the Act, and if this is not done, they are punishable with fine which may
extend to
Rs.Twenty-five. In the case of a continuing default, an additional fine extending to
Rs.Twenty-five may be imposed for each week after the first week during which the
default
continues. But in no case the total fine shall exceed rupees five hundred.
The following information or statements are required to be submitted by the
registered trade union:
(i) Notice of change in the address of the head office of the trade union;
(ii) Notice of change of the name on amalgamation of the unions;
(iii) Notice of change in the officers of the trade union;
(iv) Copies of the corrected rules ;
(v) Copy of every alteration made in the rules;
(vi) Notice of dissolution of the trade union; and
(vii) Annual returns for he period ending March 31.
Any person who willfully makes, or causes to make, any false entry in, or any
omission from the general statement, or the copy of the rules or the copy of altered
rules,
which are required to be submitted to the Registrar in the case of a registered trade
union,
shall be punishable with fine which may extend to Rs. 500 (Section 31).
Any person who contravenes any of the orders of the Registrar for verification of
the
membership of a registered trade union (under Section 28A) shall be punishable
with fine
which may extend to five hundred rupees (Section 31).
(ii) Supplying False Information about Trade Unions (Section 32):
The Act also lays down that where any person with intent to deceive gives:
(a) to any member of a registered trade union, or
(b) to any person including or applying to become a member of such trade union, or
(c) any alteration as are for the time being in force, shall be punishable with fine
which may extent to Rs.200. Similarly, any person who with intent to deceive gives a
copy of any rules of an unregistered trade union to any person, on the pretence that
such rules are the rules of a registered trade union, shall be punishable with fine
which may extend to Rs.200.
(iii) Cognizance of Offence (Section 33): Any offence under this Act cannot be tried
by a court inferior to that of Metropolitan Magistrate or a Judicial Magistrate First
Class.
Further, no court shall take cognizance of any offence unless complaint thereof has
been
made by both or with the previous sanction of the Registrar of by the person to
whom the
copy was given, within six months of the date on which the offence is alleged to have
been committed. Individual employees, if not required to become members in good
standing in the union, may refuse to follow contract provision. Other employees,
although benefiting from union activities, may also refuse to support the union.
These “free riders” can create dissatisfaction among union members, who may also
likewise refuse to continue their support to union activities. For these reasons,
unions often propose some system of union security, of which all employees are
required to be or to become and to remain union members.
The Union Security covers:
(a) Sole or Exclusive Bargaining Agent: Under this type of security, the union is
accepted as a bargaining agent for all employees (members and non-members) in
the unit.
(b) Preferential Union Shop: Under this, additional recognition is granted to a union
by agreement that management shall give the first chance to union members in
recruitment.
2.4 Unionization in the Indian Context
Trade union law and political parties and their strategy are relevant for the process
of
unionization in the Indian context. The Trade Union Act 1926 states, “Any seven or
more members of a trade union may be subscribing their names to the rules of the
trade union and by otherwise complying with the provisions of this act with respect
to registration, apply for registration of the trade union under this act.
This has resulted in a large number of registered and unregistered trade unions.
Another factor is that the major political parties have a federation at the apex or
national level to which unions at the plant and state level are affiliated. The
organization pattern of a trade union federation is usually three-tired. Units exist at
the plant or shop, state and the national level.

National Level Federation

Historically, four major federations have been in existence and have established a
national net
work of federal unions. They are:
1. The All India Trade Union Congress (AITUC)
2. India National Trade Union Congress (INTUC)
3. United Trade Union Congress (UTUC)
4. Hind Mazdoor Sabha (HMS)
Of the four, the penultimate one, UTUC, has to a certain extent merged with the
Center of Indian Trade Union (CITU)
Other than the above,
1. National Labour Organisation (NLO)
2. Bhartiya Mazdoor Sangh (BMS) and
3. Hind Mazdoor Panchayat (HMP)
are a few having stronger regional affiliations than a national coverage.
2.5 INDUSTRY LEVEL UNIONS
Textile Labour Association
Ahmedabad is an example of the industry level union. TLA has diversified into an
unorganized sector. However, its strength and major contribution has been in the
textile
industry.
Local Level Unions
Many Indian Unions are not affiliated to an industry level federation and in many
cases may
not have any affiliation to the national federation. They are thus independent local
unions
centered on a particular plant or a multi plant organization. Irrespective of
occupational
groups all are admitted to this union. The numbers may vary among the small,
medium and large ones. In specific situations, the assistance or guidance of the
larger federations or other large unions in related industries are sought.
2.6 RECOGNITION OF A UNION
There are two issues of concern here:
The first is the issue of recognition of a union peruse, especially in a non-unionised
situation.
The first question that arises is: Which union is one to recognize, or should more
than one
union be recognized? Related to this is the problem of verification, the process by
which the contending unions’ claim to membership is cross-checked, to enable one
to seek
representative status.
The two issues are related to: (i) the need to recognize a union; and (ii) the process
to be
employed for verification when a union stakes its claim, either in a new union
situation or in multi-union situations. This problem arises because at the moment
there is no uniform
legislation available in all the states and union territories with regard to the
recognition issue. There have been attempts time and again at restructuring and
streamlining the system but nothing has been affected so far. It is only in states
where the Bombay Industrial Relations Act is in force, e.g. Gujarat and
Maharashtra, that there are elaborate provisions regarding recognition. The Act
classifies trade unions into three categories:
1. Representative union
2. Qualified union,
3. Primary union
The basis of this classification is the percentage of membership that a union
has at the industry level ( Chemical industry) or at the lowest level, the primary
union.
The representative union should be able to muster 15% of the total number of
employees,
employed in any one industry in a contiguous area. The qualified union should have
5% of the employees in an industry enrolled as members and finally the primary
union should have 15% or more employees enrolled in a unit or a plant. Therefore it
is apparent that there is a scaling down of numbers in terms of the status accorded.
The idea is to provide some basis to assess the relative strength of a union seeking
recognition.
The Verification Process under the Code of Discipline
In a situation where a union puts forth a claim to be recognized under the Code of
Discipline the Labour Department satisfies itself about the union’s representation.
The department would collect the following:
1. Particulars of existing unions in the plant, registration number and date of
registration,
whether the existing recognized union has completed a two-year period, whether
any
of the unions has completed a two-year period, whether any of the unions
committed
a breach of the Code of Discipline as established by an enquiry of the
implementation
machinery. Within 10 days the aspirant unions and other existing unions will have
to
produce documentary evidence to the verification officer in respect of the list of
members who have paid subscriptions for three months out of the preceding six
months.
2. Membership and subscription.
3. Money receipt counterfoils.
4. Books of accounts.
5. Bank account books (statements)
6. A copy of the constitution of the union.
If there are two unions then both need to furnish the required data. However,
if the unions abstain from providing data, the verification officer after giving 10
days notice, will go ahead with the verification process and come to a judgment.
The verification officer scrutinizes the documents in the presence of the union(s)
submitting the above data. If any member has been claimed by both the unions then
an explanation is called for. The muster roll of the firm will also be checked to
ensure that the names tally in terms of employment and union membership. After
this process of checking and rechecking, the unions concerned can themselves go
through the verified list of members and notify their objections, if any. Only specific
objections will be considered. The objections will then have to be verified. In order
to establish this, a systematic sample of employees will be selected for personal
interrogation. The proportion of interviews varies from a figure as high as 29% or a
minimum of 100 when
the number of names objected to is 500 to 2% or 250 when the number is above
5000 or
more. The verification officer will then submit his report to the government as well
as to the management of the firm. This verification process is according to the Code
of Discipline. However, since the code is not a statute, his findings have to be
accepted in good faith by both the management and unions during their bilateral
talks. Many agreements incorporate the acceptance of such voluntary codes.
2.7 Rights and Responsibilities of Registered Unions
While the main clauses of the Trade Union Act of 1926, concern the formation of
unions,
certain other features are also worth noting. Registration, which means formal
recognition of a representative body, also entails certain pre-conditions. A registered
union must allow membership to anyone over 15 years of age and have 50% of the
office bearers from within the industry. It must keep its books of account in order
and send its income and expenditure statements to the registrar of trade unions on
or before 31st March. The union can spend its funds on salaries of office bearers,
prosecution, defence, etc. for protecting its trade union rights, to provide
compensation to members, levy subscription fees, publish periodicals, etc. More
important, a registered union can claim protection from being prosecuted for
legitimate trade union activities. This protection is under Section 120 B, subsection 2
of the Indian Penal Code. The issue that arises, therefore, is the distinction between
a recognized union under the Code of Discipline and a registered union under the
Trade Union Act of 1926. The former is a voluntary act and may well concern a
representative union, while the latter may not always cover a representative union,
especially in multi-union situations where there are many small
unions or two or three factions. In the absence of any statute, the recognition of a
majority bargaining union of the workers still remains a cumbersome process.

THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

Year : 1946

Act :

THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946,

ACT NO. 20 OF 1946 1*

[23rd April, 1946.]

An Act to require employers in industrial establishments formally to define conditions of

employment under them.

WHEREAS it is expedient to require employers in industrial establishments to define with

sufficient precision the conditions of employment under them and to make the said
conditions known to workmen employed by them;

It is hereby enacted as follows:--

1.Short title, extent and application.

1. Short title, extent and application.- (1) This Act may be called the Industrial
Employment (Standing Orders) Act, 1946.(2) It extends to the whole of India 2***

3*[(3) It applies to every industrial establishment wherein one hundred or more

workmen are employed, or were employed on any day of the preceding twelve months:

Provided that the appropriate Government may, after giving not less than two months
notice of its intention so to do, by notification in the Official Gazette, apply the provisions
of this Act to any industrial establishment employing such number of persons less than
one hundred as may be specified in the notification.

4* * * * *

5*[(4) Nothing in this Act shall apply to--

(i) any industry to which the provisions of Chapter VII of the Bombay Industrial Relations
Act, 1946 (Bombay Act
11 of 1947.), apply; or

(ii) any industrial establishment to which the provisions of the Madhya Pradesh Industrial
Employment (Standing
Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961)
apply:

Provided that notwithstanding anything contained in the

Madhya Pradesh Industrial Employment (standing Orders)
Act, 1961 (Madhya Pradesh Act 26 of 1961),

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1. This Act has been extended to Goa, Daman and Diu by Reg. 12 of
1962, s. 3 and Sch., to Pondicherry (w.e.f. 1-10-1963) by Reg. 7 of
1963, s. 3 and Sch. I and to Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s.
3 and Sch.

Amended in Maharashtra by Maha. Act 54 of 1974.Amended in Mysore by Mysore Act 37

of 1975.Amended in Madras by Madras Act 24 of 1960.
Amended in Andhra Pradesh by A. P. Act 9 of 1969.2. The words "except the State of
Jammu and Kashmir" omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971)
3. Subs. by Act 16 of 1961, s. 2, for sub-section (3).
4. Second proviso omitted by Act 39 of 1963, s. 2 (w.e.f. 23-12-
1963).
5 Ins. by s. 2, ibid, (w.e.f. 23-12-1963).

130

the provisions of this Act shall apply to all industrial establishments under the control of
the
Central Government.]
2.Interpretation.

2. Interpretation.- In this Act, unless there is anything repugnant in the subject or

context,--

1*[(a) "appellate authority" means an authority appointed by the appropriate

Government by notification in the
Official Gazette to exercise in such area as may be specified in the notification the
functions of an appellate authority under this Act:

Provided that in relation to an appeal pending before an

Industrial Court or other authority immediately before the commencement of the
Industrial
Employment (Standing Orders) Amendment Act, 1963.(39 of 1963), that Court or
authority shall be deemed to be the appellate authority;]

(b) "appropriate Government" means in respect of industrial establishments under the

control of the Central
Government or a 2*[Railway administration] or in a major port, mine or oil-field, the
Central Government, and in all other cases, the State Government:

3*[Provided that where any question arises as to whether any industrial establishment is
under the control of the Central Government, that Government may, either on a reference
made to it by the employer or the workman or a trade union or other representative body
of the workmen, or on its own motion and after giving the parties an opportunity of being
heard, decide the question and such decision shall be final and binding on the parties;]

4*[(c) "Certifying Officer" means a Labour Commissioner or a

Regional Labour Commissioner, and includes any other officer appointed by the
appropriate
Government, by notification in the Official
Gazette, to perform all or any of the functions of a Certifying Officer under this Act;]

(d) "employer" means the owner of an industrial establishment to which this Act for the
time being applies, and includes--

(i) in a factory, any person named under

5*[clause (j) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948),] as
manager of the factory;

(ii) in any industrial establishment under the control of any department of any
Government in
India, the authority appointed by such Government in this behalf, or where no authority
is so appointed, the head of the department;
---------------------------------------------------------------------
1. Subs. by Act 39 of 1963, s. 3, for cl. (a) (w.e.f. 23-12-1963).
2. Subs. by the A. O. 1950, for "Federal railway".
3. Added by Act 18 of 1982, s. 2 (w.e.f. 17-5-1982).
4. Subs. by Act 16 of 1961, s. 3, for cl. (c).
5. Subs. by s. 3, ibid, for "clause (e) of sub-section (1) of section 9 of the Factories Act,
1934".

131.(iii) in any other industrial establishment, any person responsible to the owner for
the supervision and control of the industrial establishment;

(e) "industrial establishment" means--

(i) an industrial establishment as defined in clause (ii) of section 2 of the Payment of

Wages
Act, 1936 (4 of 1936), or

1*[(ii) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of
1948), or]

(iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act, 1890 (9 of
1890), or

(iv) the establishment of a person who, for the purpose of fulfilling a contract with the
owner of any industrial establishment, employs workmen;

(f) "prescribed" means prescribed by rules made by the appropriate Government under
this Act;

(g) "standing orders" means rules relating to matters set out in the Schedule;

(h) "trade union" means a trade union for the time being registered under the Indian
Trade Unions Act, 1926 (16.of 1926)

2*[(i) "wages" and "workman" have the meanings respectively assigned to them in
clauses (rr) and (s) of section 2 of the
Industrial Disputes Act, 1947 (14 of 1947)].
---------------------------------------------------------------------
1. Subs. by Act 16 of 1961, s. 3, for sub-clause (ii).
1934".
2. Subs. by Act 18 of 1982, s. 2 (w.e.f. 17-5-1982).

132.3.Submission of draft standing orders.

3. Submission of draft standing orders.- (1) Within six months from the date on which
this Act becomes applicable to an industrial establishment, the employer shall submit to
the Certifying Officer five copies of the draft standing orders proposed by him for
adoption in his industrial establishment.

(2) Provision shall be made in such draft for every matter set out in the Schedule which
may be applicable to the industrial establishment, and where model standing orders have
been prescribed, shall be, so far as is practicable, in conformity with such model.

(3) The draft standing orders submitted under this section shall be accompanied by a
statement giving prescribed particulars of the workmen employed in the industrial
establishment including the name of the trade union, if any, to which they belong.
(4) Subject to such conditions as may be prescribed, a group of employers in similar
industrial establishments may submit a joint draft of standing orders under this section.

4.Conditions for certification of standing orders.

4. Conditions for certification of standing orders.- Standing orders shall be certifiable

under this Act if--

(a) provision is made therein for every matter set out in the Schedule which is applicable
to the industrial establishment, and

(b) the standing orders are otherwise in conformity with the provisions of this Act;

and it 1*[shall be the function] of the Certifying Officer or appellate authority to

adjudicate upon the fairness or reasonableness of the provisions of any standing orders.

5.Certification of standing orders.

5. Certification of standing orders.-(1) On receipt of the draft under section 3, the

Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen,
or where there is no such trade union, to the workmen in such manner as may be
prescribed, together with a notice in the prescribed form requiring objections, if any,
which the workmen may desire to make to the draft standing orders to be submitted to
him within fifteen days from the receipt of the notice.

(2) After giving the employer and the trade union or such other representatives of the
workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall
decide whether or not any modification of or addition to the draft submitted by the
employer is necessary to render the draft standing orders certifiable under this
Act, and shall make an order in writing accordingly.
---------------------------------------------------------------------
1. Subs. by Act 36 of 1956, s. 32, for "shall not be the function"
(w.e.f. 17-9-1956).

133.(3) The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications therein which his order under sub-section (2) may require, and
shall within seven days thereafter send copies of the certified standing orders
authenticated in the prescribed manner and of his order under sub-section (2) to the
employer and to the trade union or other prescribed representatives of the workmen.

6.Appeals.

6. Appeals.- (1) 1*[Any employer, workman, trade union or other prescribed

representatives of the workmen] aggrieved by the order of the Certifying Officer under
sub-section (2) of section 5 may, within
2*[thirty days] from the date on which copies are sent under sub-
section (3) of that section, appeal to the appellate authority, and the appellate authority,
whose decision shall be final, shall by order in writing confirm the standing orders either
in the form certified by the Certifying Officer or after amending the said standing orders
by making such modifications thereof or additions thereto as it thinks necessary to render
the standing orders certifiable under this Act.

(2) The appellate authority shall, within seven days of its order under sub-section (1),
send copies thereof of the Certifying Officer, to the employer and to the trade union or
other prescribed representatives of the workmen, accompanied, unless it has confirmed
without amendment the standing orders as certified by the Certifying
Officer, by copies of the standing orders as certified by it and authenticated in the
prescribed manner.

7.Date of operation of standing orders.

7. Date of operation of standing orders.-Standing orders shall, unless an appeal is

preferred under section 6, come into operation on the expiry of thirty days from the date
on which authenticated copies thereof are sent under sub-section (3) of section 5, or
where an appeal as aforesaid is preferred, on the expiry of seven days from the date on
which copies of the order of the appellate authority are sent under sub-section (2) of
section 6.8.Register of standing orders.

8. Register of standing orders.- A copy of all standing orders as finally certified under this
Act shall be filed by the Certifying
Officer in a register in the prescribed form maintained for the purpose, and the Certifying
Officer shall furnish a copy thereof to any person applying therefor on payment of the
prescribed fee.

9.Posting of standing orders.

9. Posting of standing orders.-The text of the standing orders as finally certified under
this Act shall be prominently posted by the employer in English and in the language
understood by the majority of his workmen on special
---------------------------------------------------------------------
1. Subs. by Act 18 of 1982, s. 3 (w.e.f. 17-5-1982).
2. Subs. by Act 16 of 1961, s. 4, for "twenty-one days".

134.boards to be maintained for the purpose at or near the entrance through which the
majority of the workmen enter the industrial establishment and in all departments
thereof where the workmen are employed.

10.Duration and modification of standing orders.

10. Duration and modification of standing orders.- (1) Standing orders finally certified
under this Act shall not, except on agreement between the employer and the workmen
1*[or a trade union or other representative body of the workmen] be liable to
modification until the expiry of six months from the date on which the standing orders or
the last modifications thereof came into operation.

2*[(2) Subject to the provisions of sub-section (1), an employer or workman 1*[or a

trade union or other representative body of the workmen] may apply to the Certifying
Officer to have the standing orders modified, and such application shall be accompanied
by five copies of 3*** the modifications proposed to be made, and where such
modifications are proposed to be made by agreement between the employer and the
workman 1*[or a trade union or other representative body of the workmen], a certified
copy of that agreement shall be filed along with the application.]

(3) The foregoing provisions of this Act shall apply in respect of an application under sub-
section (2) as they apply to the certification of the first standing orders.

4*[(4) Nothing contained in sub-section (2) shall apply to an industrial establishment in

respect of which the appropriate
Government is the Government of the State of Gujarat or the Government of the State of
Maharashtra.]

10A.

Payment of subsistence allowance.

5*[10A. Payment of subsistence allowance.-(1) Where any workman is suspended by the

employer pending investigation or inquiry into complaints or charges of misconduct
against him, the employer shall pay to such workman subsistence allowance--

(a) at the rate of fifty per cent. of the wages which the workman was entitled to
immediately preceding the date of such suspensions, for the first ninety days of
suspension; and

(b) at the rate of seventy-five per cent. of such wages for the remaining period of
suspension if the delay in the completion of disciplinary proceedings against such
workman is not directly attributable to the conduct of such workman.

(2) If any dispute arises regarding the subsistence allowance payable to a workman
under sub-section (1), the workman or the employer concerned may refer the dispute to
the Labour Court,
(14 of 1947) constituted under the Industrial Disputes Act, 1947, within the local limits
of whose jurisdiction the industrial establishment wherein such workman is employed is
situate and the
Labour Court to which the dispute is so referred shall, after giving the parties an
opportunity of being heard, decide the dispute and such decision shall be final and
binding on the parties.

(3) Notwithstanding anything contained in the foregoing provisions of this section, where
provisions relating to payment of subsistence allowance under any other law for the time
being in force in any State are more beneficial than the provisions of this section, the
provisions of such other law shall be applicable to the payment of subsistence allowance
in that State.]

11.Certifying officers and appellate authorities to have powers of CivilCourt.

11. Certifying officers and appellate authorities to have powers of Civil Court.- 6*[(1)]
Every Certifying Officer and appellate authority shall have all the powers of a Civil Court
for the purposes of receiving evidence, administering oaths, enforcing the attendance of
witnesses, and compelling the discovery and production of documents, and shall be
deemed to be a Civil Court within the meaning of 7*[sections 345 and 346 of the Code of
Criminal Procedure, 1973.(2 of 1974)].

5*[(2) Clerical or arithmetical mistakes in any order passed by a

Certifying Officer or appellate authority, or errors arising therein from any accidental slip
or omission may, at any time, be corrected by that Officer or authority or the successor in
office of such Officer or authority, as the case may be.]
---------------------------------------------------------------------
1. Ins. by Act 18 of 1982, s. 4. (w.e.f. 17-5-1982).
2. Subs. by Act 36 of 1956, s. 32, for sub-section (2) (w.e.f.
17-9- 1956).
3. Certain words omitted by Act 39 of 1963, s. 4 (w.e.f. 23-12-
1963).
4. Ins. by s. 4, ibid, (w.e.f. 23-12-1963).
5. Ins. by Act 18 of 1982, s. 5 (w.e.f. 17-5-1982)
6. S. 11 re-numbered as sub-section (1) thereof by Act 39 of 1963, s. 5 (w.e.f. 23-12-
1963).
7. Subs. by Act 18 of 1982, s. 6 (w.e.f. 17-5-1982).
8. Ins. by Act 39 of 1963, s. 5 (w.e.f. 23-12-1963)

135.12.Oral evidence in contradiction of standing orders not admissible.

12. Oral evidence in contradiction of standing orders not admissible.- No oral evidence
having the effect of adding to or otherwise varying or contradicting standing orders as
finally certified under this Act shall be admitted in any Court.

12A.

Temporary application of model standing orders.

1*[12A. Temporary application of model standing orders.- (1)

Notwithstanding anything contained in sections 3 to 12, for the period commencing on
the date on which this Act becomes applicable to an industrial establishment and ending
with the date on which the standing orders as finally certified under this Act come into
operation under section 7 in that establishment, the prescribed model standing orders
shall be deemed to be adopted in that establishment, and the provisions of section 9, sub-
section (2) of section 13 and section 13A shall apply to such model standing orders as
they apply to the standing orders so certified.
(2) Nothing contained in sub-section (1) shall apply to an industrial establishment in
respect of which the appropriate
Government is the Government of the State of Gujarat or the Government of the State of
Maharashtra.]

13.Penalties and procedure.

13. Penalties and procedure.-(1) An employer who fails to submit draft standing orders
as required by section 3, or who modifies his standing orders otherwise than in
accordance with section 10, shall be punishable with fine which may extend to five
thousand rupees, and in the case of a continuing offence with a further fine which may
extend to two hundred rupees for every day after the first during which the offence
continues.

(2) An employer who does any act in contravention of the standing orders finally certified
under this Act for his industrial establishment shall be punishable with fine which may
extend to one hundred rupees, and in the case of a continuing offence with a further fine
which may extend to twenty-five rupees for every day after the first during which the
offence continues.

(3) No prosecution for an offence punishable under this section shall be instituted except
with the previous sanction of the appropriate Government.

(4) No Court inferior to that of 2*[a Metropolitan Magistrate or

Judicial Magistrate of the second class] shall try any offence under this section.

13A.

Interpretation, etc., of standing orders.

3*[13A. Interpretation, etc., of standing orders.-If any question arises as to the

application or interpretation of a standing order certified under this Act, any employer or
workman 4*[or a trade union or other representative body of the workman] may refer
the question to any one of the Labour Courts constituted under the Industrial
Disputes Act, 1947 (14 of 1947), and specified for
---------------------------------------------------------------------
1. Ins. by Act 39 of 1963, s. 6 (w.e.f. 23-12-1963).
2. Subs. by Act 18 of 1982, s. 7 (w.e.f. 17-5-1982).
3. Ins. by Act 36 of 1956, s. 32 (w.e.f. 10-3-1957).
4. Ins. by Act 18 of 1982), s. 8 w.e.f. 17-5-1982).

136.the disposal of such proceeding by the appropriate Government by notification in the

Official Gazette, and the Labour Court to which the question is so referred shall, after
giving the parties an opportunity of being heard, decide the question and such decision
shall be final and binding on the parties.
13B.

Act not be apply to certain industrial establishments.

13B. Act not be apply to certain industrial establishments.-

Nothing in this Act shall apply to an industrial establishment in so far as the workmen
employed therein are persons to whom the
Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal)
Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service
Regulations, Civilians in Defence
Service (classification, Control and Appeal) Rules or the Indian
Railway Establishment Code or any other rules or regulations that may be notified in this
behalf by the appropriate Government in the
Official Gazette, apply.]

14.Power to exempt.

14. Power to exempt.- The appropriate Government may by notification in the Official
Gazette exempt, conditionally or unconditionally any industrial establishment or class of
industrial establishments from all or any of the provisions of this Act.

14A.

Delegation of powers.

1*[14A. Delegation of powers.- The appropriate Government may by notification in the

Official Gazette, direct that any power exercisable by it under this Act or any rules made
thereunder shall, in relation to such matters and subject to such conditions, if any, as
may be specified in the direction, be exercisable also--

(a) where the appropriate Government is the Central

Government, by such officer or authority subordinate to the Central Government or by the
State Government or by such officer or authority subordinate to the State
Government, as may be specified in the notification;

(b) where the appropriate Government is a State Government, by such officer or

authority subordinate to the State
Government as may be specified in the notification.]

15.Power to make rules.

15. Power to make rules.- (1) The appropriate Government may, after previous
publication, by notification in the Official Gazette make rules to carry out the purposes of
this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such
rules may--

(a) prescribe additional matters to be included in the

Schedule, and the procedure to be followed in modifying standing.
---------------------------------------------------------------------
1. Subs. by Act 39 of 1963, s. 7 (w.e.f. 23-12-1963), for s. 41A
ins. by Act 16 of 1961, s. 5.136A

orders certified under this Act in accordance with any such addition;

(b) set out model standing orders for the purposes of this
Act;

(c) prescribe the procedure of Certifying Officers and appellate authorities;

(d) prescribe the fee which may be charged for copies of standing orders entered in the
register of standing orders;

(e) provide for any other matter which is to be or may be prescribed:

Provided that before any rules are made under clause (a)
representatives of both employers and workmen shall be consulted by the appropriate
Government.

1*[(3) Every rule made by the Central Government under this section shall be laid as
soon as may be after it is made, before each
House of Parliament while it is in session for a total period of thirty days which may be
comprised in one session or 2*[ in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions
aforesaid ] both Houses agree in making any modification in the rule or both Houses
agree that the rule should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so however that nay such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.]

SCHE

THE SCHEDULE

THE SCHEDULE

[See sections 2 (g) and 3 (2).]

MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER THIS ACT

1. Classification of workmen, e. g., whether permanent, temporary, apprentices,

probationers, or badlis.

2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and
wage rates.

3. Shift working.

4. Attendance and late coming.

5. Conditions of, procedure in applying for, and the authority which may grant, leave and
holidays.
---------------------------------------------------------------------
1. Ins. by Act 16 of 1961, s. 6.2. Subs. by Act 18 of 1982, s. 9 (w.e.f. 17-5-1982)

136B

6. Requirement to enter premises by certain gates, and liability to search.

7. Closing and reopening of sections of the industrial establishment, and temporary

stoppages of work and the rights and liabilities of the employer and workmen arising
therefrom.

8. Termination of employment, and the notice thereof to be given by employer and

workmen.

9. Suspension or dismissal for misconduct, and acts or omissions which constitute

misconduct.

10. Means of redress for workmen against unfair treatment or wrongful exactions by the
employer or his agents or servants.

11. Any other matter which may be prescribed.

THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946,

#
ACT NO. 20 OF 1946 1*

[23rd April, 1946.]

+

An Act to require employers in industrial establishments formally to define conditions of

employment under them.

WHEREAS it is expedient to require employers in industrial establishments to define with

sufficient precision the conditions of employment under them and to make the said
conditions known to workmen employed by them;

It is hereby enacted as follows:--

1.Short title, extent and application.

1. Short title, extent and application.- (1) This Act may be called the Industrial
Employment (Standing Orders) Act, 1946.(2) It extends to the whole of India 2***

3*[(3) It applies to every industrial establishment wherein one hundred or more

workmen are employed, or were employed on any day of the preceding twelve months:

Provided that the appropriate Government may, after giving not less than two months
notice of its intention so to do, by notification in the Official Gazette, apply the provisions
of this Act to any industrial establishment employing such number of persons less than
one hundred as may be specified in the notification.

4* * * * *

5*[(4) Nothing in this Act shall apply to--

(i) any industry to which the provisions of Chapter VII of the Bombay Industrial Relations
Act, 1946 (Bombay Act
11 of 1947.), apply; or

(ii) any industrial establishment to which the provisions of the Madhya Pradesh Industrial
Employment (Standing
Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961)
apply:

Provided that notwithstanding anything contained in the

Madhya Pradesh Industrial Employment (standing Orders)
Act, 1961 (Madhya Pradesh Act 26 of 1961),

---------------------------------------------------------------------
1. This Act has been extended to Goa, Daman and Diu by Reg. 12 of
1962, s. 3 and Sch., to Pondicherry (w.e.f. 1-10-1963) by Reg. 7 of
1963, s. 3 and Sch. I and to Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s.
3 and Sch.

Amended in Maharashtra by Maha. Act 54 of 1974.Amended in Mysore by Mysore Act 37

of 1975.Amended in Madras by Madras Act 24 of 1960.
Amended in Andhra Pradesh by A. P. Act 9 of 1969.2. The words "except the State of
Jammu and Kashmir" omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971)
3. Subs. by Act 16 of 1961, s. 2, for sub-section (3).
4. Second proviso omitted by Act 39 of 1963, s. 2 (w.e.f. 23-12-
1963).
5 Ins. by s. 2, ibid, (w.e.f. 23-12-1963).

130

the provisions of this Act shall apply to all industrial establishments under the control of
the
Central Government.]

2.Interpretation.
2. Interpretation.- In this Act, unless there is anything repugnant in the subject or
context,--

1*[(a) "appellate authority" means an authority appointed by the appropriate

Government by notification in the
Official Gazette to exercise in such area as may be specified in the notification the
functions of an appellate authority under this Act:

Provided that in relation to an appeal pending before an

Industrial Court or other authority immediately before the commencement of the
Industrial
Employment (Standing Orders) Amendment Act, 1963.(39 of 1963), that Court or
authority shall be deemed to be the appellate authority;]

(b) "appropriate Government" means in respect of industrial establishments under the

control of the Central
Government or a 2*[Railway administration] or in a major port, mine or oil-field, the
Central Government, and in all other cases, the State Government:

3*[Provided that where any question arises as to whether any industrial establishment is
under the control of the Central Government, that Government may, either on a reference
made to it by the employer or the workman or a trade union or other representative body
of the workmen, or on its own motion and after giving the parties an opportunity of being
heard, decide the question and such decision shall be final and binding on the parties;]

4*[(c) "Certifying Officer" means a Labour Commissioner or a

Regional Labour Commissioner, and includes any other officer appointed by the
appropriate
Government, by notification in the Official
Gazette, to perform all or any of the functions of a Certifying Officer under this Act;]

(d) "employer" means the owner of an industrial establishment to which this Act for the
time being applies, and includes--

(i) in a factory, any person named under

5*[clause (j) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948),] as
manager of the factory;

(ii) in any industrial establishment under the control of any department of any
Government in
India, the authority appointed by such Government in this behalf, or where no authority
is so appointed, the head of the department;
---------------------------------------------------------------------
1. Subs. by Act 39 of 1963, s. 3, for cl. (a) (w.e.f. 23-12-1963).
2. Subs. by the A. O. 1950, for "Federal railway".
3. Added by Act 18 of 1982, s. 2 (w.e.f. 17-5-1982).
4. Subs. by Act 16 of 1961, s. 3, for cl. (c).
5. Subs. by s. 3, ibid, for "clause (e) of sub-section (1) of section 9 of the Factories Act,
1934".

131.(iii) in any other industrial establishment, any person responsible to the owner for
the supervision and control of the industrial establishment;

(e) "industrial establishment" means--

(i) an industrial establishment as defined in clause (ii) of section 2 of the Payment of

Wages
Act, 1936 (4 of 1936), or

1*[(ii) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of
1948), or]

(iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act, 1890 (9 of
1890), or

(iv) the establishment of a person who, for the purpose of fulfilling a contract with the
owner of any industrial establishment, employs workmen;

(f) "prescribed" means prescribed by rules made by the appropriate Government under
this Act;

(g) "standing orders" means rules relating to matters set out in the Schedule;

(h) "trade union" means a trade union for the time being registered under the Indian
Trade Unions Act, 1926 (16.of 1926)

2*[(i) "wages" and "workman" have the meanings respectively assigned to them in
clauses (rr) and (s) of section 2 of the
Industrial Disputes Act, 1947 (14 of 1947)].
---------------------------------------------------------------------
1. Subs. by Act 16 of 1961, s. 3, for sub-clause (ii).
1934".
2. Subs. by Act 18 of 1982, s. 2 (w.e.f. 17-5-1982).

132.3.Submission of draft standing orders.

3. Submission of draft standing orders.- (1) Within six months from the date on which
this Act becomes applicable to an industrial establishment, the employer shall submit to
the Certifying Officer five copies of the draft standing orders proposed by him for
adoption in his industrial establishment.

(2) Provision shall be made in such draft for every matter set out in the Schedule which
may be applicable to the industrial establishment, and where model standing orders have
been prescribed, shall be, so far as is practicable, in conformity with such model.

(3) The draft standing orders submitted under this section shall be accompanied by a
statement giving prescribed particulars of the workmen employed in the industrial
establishment including the name of the trade union, if any, to which they belong.

(4) Subject to such conditions as may be prescribed, a group of employers in similar

industrial establishments may submit a joint draft of standing orders under this section.
4.Conditions for certification of standing orders.

4. Conditions for certification of standing orders.- Standing orders shall be certifiable

under this Act if--

(a) provision is made therein for every matter set out in the Schedule which is applicable
to the industrial establishment, and

(b) the standing orders are otherwise in conformity with the provisions of this Act;

and it 1*[shall be the function] of the Certifying Officer or appellate authority to

adjudicate upon the fairness or reasonableness of the provisions of any standing orders.

5.Certification of standing orders.

5. Certification of standing orders.-(1) On receipt of the draft under section 3, the

Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen,
or where there is no such trade union, to the workmen in such manner as may be
prescribed, together with a notice in the prescribed form requiring objections, if any,
which the workmen may desire to make to the draft standing orders to be submitted to
him within fifteen days from the receipt of the notice.

(2) After giving the employer and the trade union or such other representatives of the
workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall
decide whether or not any modification of or addition to the draft submitted by the
employer is necessary to render the draft standing orders certifiable under this
Act, and shall make an order in writing accordingly.
---------------------------------------------------------------------
1. Subs. by Act 36 of 1956, s. 32, for "shall not be the function"
(w.e.f. 17-9-1956).

133.(3) The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications therein which his order under sub-section (2) may require, and
shall within seven days thereafter send copies of the certified standing orders
authenticated in the prescribed manner and of his order under sub-section (2) to the
employer and to the trade union or other prescribed representatives of the workmen.

6.Appeals.

6. Appeals.- (1) 1*[Any employer, workman, trade union or other prescribed

representatives of the workmen] aggrieved by the order of the Certifying Officer under
sub-section (2) of section 5 may, within
2*[thirty days] from the date on which copies are sent under sub-
section (3) of that section, appeal to the appellate authority, and the appellate authority,
whose decision shall be final, shall by order in writing confirm the standing orders either
in the form certified by the Certifying Officer or after amending the said standing orders
by making such modifications thereof or additions thereto as it thinks necessary to render
the standing orders certifiable under this Act.

(2) The appellate authority shall, within seven days of its order under sub-section (1),
send copies thereof of the Certifying Officer, to the employer and to the trade union or
other prescribed representatives of the workmen, accompanied, unless it has confirmed
without amendment the standing orders as certified by the Certifying
Officer, by copies of the standing orders as certified by it and authenticated in the
prescribed manner.

7.Date of operation of standing orders.

7. Date of operation of standing orders.-Standing orders shall, unless an appeal is

preferred under section 6, come into operation on the expiry of thirty days from the date
on which authenticated copies thereof are sent under sub-section (3) of section 5, or
where an appeal as aforesaid is preferred, on the expiry of seven days from the date on
which copies of the order of the appellate authority are sent under sub-section (2) of
section 6.8.Register of standing orders.

8. Register of standing orders.- A copy of all standing orders as finally certified under this
Act shall be filed by the Certifying
Officer in a register in the prescribed form maintained for the purpose, and the Certifying
Officer shall furnish a copy thereof to any person applying therefor on payment of the
prescribed fee.

9.Posting of standing orders.

9. Posting of standing orders.-The text of the standing orders as finally certified under
this Act shall be prominently posted by the employer in English and in the language
understood by the majority of his workmen on special
---------------------------------------------------------------------
1. Subs. by Act 18 of 1982, s. 3 (w.e.f. 17-5-1982).
2. Subs. by Act 16 of 1961, s. 4, for "twenty-one days".

134.boards to be maintained for the purpose at or near the entrance through which the
majority of the workmen enter the industrial establishment and in all departments
thereof where the workmen are employed.

10.Duration and modification of standing orders.

10. Duration and modification of standing orders.- (1) Standing orders finally certified
under this Act shall not, except on agreement between the employer and the workmen
1*[or a trade union or other representative body of the workmen] be liable to
modification until the expiry of six months from the date on which the standing orders or
the last modifications thereof came into operation.
2*[(2) Subject to the provisions of sub-section (1), an employer or workman 1*[or a
trade union or other representative body of the workmen] may apply to the Certifying
Officer to have the standing orders modified, and such application shall be accompanied
by five copies of 3*** the modifications proposed to be made, and where such
modifications are proposed to be made by agreement between the employer and the
workman 1*[or a trade union or other representative body of the workmen], a certified
copy of that agreement shall be filed along with the application.]

(3) The foregoing provisions of this Act shall apply in respect of an application under sub-
section (2) as they apply to the certification of the first standing orders.

4*[(4) Nothing contained in sub-section (2) shall apply to an industrial establishment in

respect of which the appropriate
Government is the Government of the State of Gujarat or the Government of the State of
Maharashtra.]

10A.

Payment of subsistence allowance.

5*[10A. Payment of subsistence allowance.-(1) Where any workman is suspended by the

employer pending investigation or inquiry into complaints or charges of misconduct
against him, the employer shall pay to such workman subsistence allowance--

(a) at the rate of fifty per cent. of the wages which the workman was entitled to
immediately preceding the date of such suspensions, for the first ninety days of
suspension; and

(b) at the rate of seventy-five per cent. of such wages for the remaining period of
suspension if the delay in the completion of disciplinary proceedings against such
workman is not directly attributable to the conduct of such workman.

(2) If any dispute arises regarding the subsistence allowance payable to a workman
under sub-section (1), the workman or the employer concerned may refer the dispute to
the Labour Court,
(14 of 1947) constituted under the Industrial Disputes Act, 1947, within the local limits
of whose jurisdiction the industrial establishment wherein such workman is employed is
situate and the
Labour Court to which the dispute is so referred shall, after giving the parties an
opportunity of being heard, decide the dispute and such decision shall be final and
binding on the parties.

(3) Notwithstanding anything contained in the foregoing provisions of this section, where
provisions relating to payment of subsistence allowance under any other law for the time
being in force in any State are more beneficial than the provisions of this section, the
provisions of such other law shall be applicable to the payment of subsistence allowance
in that State.]
11.Certifying officers and appellate authorities to have powers of CivilCourt.

11. Certifying officers and appellate authorities to have powers of Civil Court.- 6*[(1)]
Every Certifying Officer and appellate authority shall have all the powers of a Civil Court
for the purposes of receiving evidence, administering oaths, enforcing the attendance of
witnesses, and compelling the discovery and production of documents, and shall be
deemed to be a Civil Court within the meaning of 7*[sections 345 and 346 of the Code of
Criminal Procedure, 1973.(2 of 1974)].

5*[(2) Clerical or arithmetical mistakes in any order passed by a

Certifying Officer or appellate authority, or errors arising therein from any accidental slip
or omission may, at any time, be corrected by that Officer or authority or the successor in
office of such Officer or authority, as the case may be.]
---------------------------------------------------------------------
1. Ins. by Act 18 of 1982, s. 4. (w.e.f. 17-5-1982).
2. Subs. by Act 36 of 1956, s. 32, for sub-section (2) (w.e.f.
17-9- 1956).
3. Certain words omitted by Act 39 of 1963, s. 4 (w.e.f. 23-12-
1963).
4. Ins. by s. 4, ibid, (w.e.f. 23-12-1963).
5. Ins. by Act 18 of 1982, s. 5 (w.e.f. 17-5-1982)
6. S. 11 re-numbered as sub-section (1) thereof by Act 39 of 1963, s. 5 (w.e.f. 23-12-
1963).
7. Subs. by Act 18 of 1982, s. 6 (w.e.f. 17-5-1982).
8. Ins. by Act 39 of 1963, s. 5 (w.e.f. 23-12-1963)

135.12.Oral evidence in contradiction of standing orders not admissible.

12. Oral evidence in contradiction of standing orders not admissible.- No oral evidence
having the effect of adding to or otherwise varying or contradicting standing orders as
finally certified under this Act shall be admitted in any Court.

12A.

Temporary application of model standing orders.

1*[12A. Temporary application of model standing orders.- (1)

Notwithstanding anything contained in sections 3 to 12, for the period commencing on
the date on which this Act becomes applicable to an industrial establishment and ending
with the date on which the standing orders as finally certified under this Act come into
operation under section 7 in that establishment, the prescribed model standing orders
shall be deemed to be adopted in that establishment, and the provisions of section 9, sub-
section (2) of section 13 and section 13A shall apply to such model standing orders as
they apply to the standing orders so certified.

(2) Nothing contained in sub-section (1) shall apply to an industrial establishment in

respect of which the appropriate
Government is the Government of the State of Gujarat or the Government of the State of
Maharashtra.]

13.Penalties and procedure.

13. Penalties and procedure.-(1) An employer who fails to submit draft standing orders
as required by section 3, or who modifies his standing orders otherwise than in
accordance with section 10, shall be punishable with fine which may extend to five
thousand rupees, and in the case of a continuing offence with a further fine which may
extend to two hundred rupees for every day after the first during which the offence
continues.

(2) An employer who does any act in contravention of the standing orders finally certified
under this Act for his industrial establishment shall be punishable with fine which may
extend to one hundred rupees, and in the case of a continuing offence with a further fine
which may extend to twenty-five rupees for every day after the first during which the
offence continues.

(3) No prosecution for an offence punishable under this section shall be instituted except
with the previous sanction of the appropriate Government.

(4) No Court inferior to that of 2*[a Metropolitan Magistrate or

Judicial Magistrate of the second class] shall try any offence under this section.

13A.

Interpretation, etc., of standing orders.

3*[13A. Interpretation, etc., of standing orders.-If any question arises as to the

application or interpretation of a standing order certified under this Act, any employer or
workman 4*[or a trade union or other representative body of the workman] may refer
the question to any one of the Labour Courts constituted under the Industrial
Disputes Act, 1947 (14 of 1947), and specified for
---------------------------------------------------------------------
1. Ins. by Act 39 of 1963, s. 6 (w.e.f. 23-12-1963).
2. Subs. by Act 18 of 1982, s. 7 (w.e.f. 17-5-1982).
3. Ins. by Act 36 of 1956, s. 32 (w.e.f. 10-3-1957).
4. Ins. by Act 18 of 1982), s. 8 w.e.f. 17-5-1982).

136.the disposal of such proceeding by the appropriate Government by notification in the

Official Gazette, and the Labour Court to which the question is so referred shall, after
giving the parties an opportunity of being heard, decide the question and such decision
shall be final and binding on the parties.

13B.

Act not be apply to certain industrial establishments.

13B. Act not be apply to certain industrial establishments.-
Nothing in this Act shall apply to an industrial establishment in so far as the workmen
employed therein are persons to whom the
Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal)
Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service
Regulations, Civilians in Defence
Service (classification, Control and Appeal) Rules or the Indian
Railway Establishment Code or any other rules or regulations that may be notified in this
behalf by the appropriate Government in the
Official Gazette, apply.]

14.Power to exempt.

14. Power to exempt.- The appropriate Government may by notification in the Official
Gazette exempt, conditionally or unconditionally any industrial establishment or class of
industrial establishments from all or any of the provisions of this Act.

14A.

Delegation of powers.

1*[14A. Delegation of powers.- The appropriate Government may by notification in the

Official Gazette, direct that any power exercisable by it under this Act or any rules made
thereunder shall, in relation to such matters and subject to such conditions, if any, as
may be specified in the direction, be exercisable also--

(a) where the appropriate Government is the Central

Government, by such officer or authority subordinate to the Central Government or by the
State Government or by such officer or authority subordinate to the State
Government, as may be specified in the notification;

(b) where the appropriate Government is a State Government, by such officer or

authority subordinate to the State
Government as may be specified in the notification.]

15.Power to make rules.

15. Power to make rules.- (1) The appropriate Government may, after previous
publication, by notification in the Official Gazette make rules to carry out the purposes of
this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such
rules may--

(a) prescribe additional matters to be included in the

Schedule, and the procedure to be followed in modifying standing.
---------------------------------------------------------------------
1. Subs. by Act 39 of 1963, s. 7 (w.e.f. 23-12-1963), for s. 41A
ins. by Act 16 of 1961, s. 5.136A

orders certified under this Act in accordance with any such addition;

(b) set out model standing orders for the purposes of this
Act;

(c) prescribe the procedure of Certifying Officers and appellate authorities;

(d) prescribe the fee which may be charged for copies of standing orders entered in the
register of standing orders;

(e) provide for any other matter which is to be or may be prescribed:

Provided that before any rules are made under clause (a)
representatives of both employers and workmen shall be consulted by the appropriate
Government.

1*[(3) Every rule made by the Central Government under this section shall be laid as
soon as may be after it is made, before each
House of Parliament while it is in session for a total period of thirty days which may be
comprised in one session or 2*[ in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions
aforesaid ] both Houses agree in making any modification in the rule or both Houses
agree that the rule should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so however that nay such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.]

SCHE

THE SCHEDULE

THE SCHEDULE

[See sections 2 (g) and 3 (2).]

MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER THIS ACT

1. Classification of workmen, e. g., whether permanent, temporary, apprentices,

probationers, or badlis.

2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and
wage rates.

3. Shift working.
4. Attendance and late coming.

5. Conditions of, procedure in applying for, and the authority which may grant, leave and
holidays.
---------------------------------------------------------------------
1. Ins. by Act 16 of 1961, s. 6.2. Subs. by Act 18 of 1982, s. 9 (w.e.f. 17-5-1982)

136B

6. Requirement to enter premises by certain gates, and liability to search.

7. Closing and reopening of sections of the industrial establishment, and temporary

stoppages of work and the rights and liabilities of the employer and workmen arising
therefrom.

8. Termination of employment, and the notice thereof to be given by employer and

workmen.

9. Suspension or dismissal for misconduct, and acts or omissions which constitute

misconduct.

10. Means of redress for workmen against unfair treatment or wrongful exactions by the
employer or his agents or servants.

11. Any other matter which may be prescribed.

THE INDUSTRIAL DISPUTES ACT, 1947

Title : THE INDUSTRIAL DISPUTES ACT, 1947

Year : 1947

Act :

THE INDUSTRIAL DISPUTES ACT, 1947.ACT NO. 14 OF 1947 1*

[11th March, 1947.]

An Act to make provision for the investigation and settlement of industrial disputes,
and for certain other purposes.

WHEREAS it is expedient to make provision for the investigation and settlement of

industrial disputes, and for certain other purposes hereinafter appearing;

It is hereby enacted as follows:--

CHAP

PRELIMINARY
CHAPTER I

PRELIMINARY

1.Short title, extent and commencement.

1. Short title, extent and commencement.- (1) This Act may be called the Industrial
Disputes Act, 1947.2*[(2) It extends to the whole of India:

3* * * * *

(3) It shall come into force on the first day of April, 1947.2.Definitions.

2. Definitions.- In this Act, unless there is anything repugnant in the subject or

context,--

(a) "appropriate Government" means--

(i) in relation to any industrial dispute concerning 4*** any industry carried on by or
under the authority of the Central Government, 5*** or by a railway company 6*[or
concerning any such controlled industry as may be specified in this behalf by the
Central Government] 7*** or in relation to an industrial dispute concerning
8*[9*[10*
---------------------------------------------------------------------
1. This Act has been extended to Goa, Daman and Diu by Reg. 12 of
1962, to Pondicherry (w.e.f. 1-10-1963) by Reg. 7 of 1963 and
Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s. 3 and
Sch.
2. Subs. by Act 36 of 1956, s. 2, for the former sub-section (w.e.f.
29-8-1956).
3. Proviso omitted by Act 51 of 1970, s. 2 and Sch. (w.e.f. 1-9-
1971).
4. Certain words and figures inserted by Act 10 of 1963, s. 47 and
Sch. II, Pt. II have been omitted by Act 36 of 1964, s. 2 (w.e.f.
19-12-1964).
5. The words "by the Federal Railway Authority" omitted by the A. O.
1948.6. Ins. by Act 65 of 1951, s. 32.7. The words "operating a Federal Railway"
omitted by the A. O.
1950.
8. Ins. by Act 47 of 1961, s. 51 and Sch. II, Pt. III (w.e.f. 1-1-
1962).
9. Subs. by Act 36 of 1964, s. 2, for "the Deposit Insurance
Corporation established" (w.e.f. 19-12-1964).
10. Subs. by Act 45 of 1971, s. 2 (w.e.f. 15-12-1971).

146.[a Dock Labour Board established under section 5A of the Dock Workers
(Regulation of Employment) Act, 1948 (9 of 1940), or the Industrial
Finance Corporation of India established under section 3 of the
Industrial Finance Corporation Act, 1948 (15 of 1948), or the
Employees State Insurance Corporation established under section 3 of the
Employees State Insurance Act, 1948 (34 of 1948), or the Board of
Trustees constituted under section 3A of the Coal Mines Provident Fund and
Miscellaneous Provisions Act, 1948( 46 of 1948), or the Central
Board of Trustees and the State Boards of Trustees constituted under section 5A and
section 5B, respectively, of the Employees Provident
Fund and Miscellaneous Provisions Act, 1952 (19 of 1952), or the
"Indian Airlines" and "Air India" Corporations established under section 3 of the Air
Corporations Act, 1953 (27 of 1953), or the Life
Insurance Corporation of India established under section 3 of the Life
Insurance Corporation Act, 1956 (31 of 1956), or the Oil and Natural
Gas Commission established under section 3 of the Oil and Natural Gas
Commission Act, 1959 (43 of 1959), or the Deposit Insurance and Credit
Guarantee Corporation established under section 3 of the Deposit
Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), or the Central
Warehousing Corporation established under section 3 of the
Warehousing Corporations Act, 1962 (58 of 1962), or the Unit Trust of
India established under section 3 of the Unit Trust of India Act, 1963.(52 of 1963),
or the Food Corporation of India established under section 3, or a Board of
Management established for two or more contiguous States under section 16, of the
Food Corporations Act, 1964.(37 of 1964), or the International Airports Authority of
India constituted under section 3 of the International Airports Authority of
India Act, 1971 (48 of 1971), or a Regional Rural Bank established under section 3
of the Regional Rural Banks Act, 1976 (21 of 1976), or the Export Credit and
Guarantee Corporation Limited or the Industrial
Reconstruction Bank of India 2* [the National Housing Bank established under
section 3 of the National Housing Bnak Act, 1987 (53 of 1987)
or] 3*[a banking or an insurance company, a mine, an oil-field] 4*[, a
Cantonment Board,] or a major port, the Central Government, and

(ii) in relation to any other industrial dispute, the

State Government;

4*[(aa) "arbitrator" includes an umpire;]

5*[6*[(aaa)] "average pay" means the average of the wages payable to a

workman--

(i) in the case of monthly paid workman, in the three complete calendar months,
---------------------------------------------------------------------
1. Subs. by Act 46 of 1982, s. 2 (w.e.f. 21-8-1984).
2. Ins. by Act 53 of 1987, s. 56 and Sch. II (w.e.f. 9-7-1988).
3. Subs. by Act 54 of 1949, s. 3, for "a mine, oil-field".
4. Ins. by Act 36 of 1964, s. 2 (w.e.f. 19-12-1964).
5. Ins. by Act 43 of 1953, s. 2 (w.e.f. 24-10-1953).
6. Cl. (aa) relettered as "(aaa)" by Act 36 of 1964, s. 2 (w.e.f.
19-12-1964).

147.(ii) in the case of weekly paid workman, in the four complete weeks,
(iii) in the case of daily paid workman, in the twelve full working days,

preceding the date on which the average pay becomes payable if the workman had
worked for three complete calendar months or four complete weeks or twelve full
working days, as the case may be, and where such calculation cannot be made, the
average pay shall be calculated as the average of the wages payable to a workman
during the period he actually worked;]

1*[(b) "award" means an interim or a final determination of any industrial dispute

or of any question relating thereto by any Labour Court, Industrial Tribunal or
National Industrial Tribunal and includes an arbitration award made under section
10A;]

2*[(bb) "banking company" means a banking company as defined in section 5 of the

Banking Companies Act, 1949 (10 of
1949), having branches or other establishments in more than one State, and
includes 3*[the Export-Import Bank of India 4*[,the Industrial Reconstruction Bank
of
India,] 5*[the Industrial Development Bank of India,]
6*[the Small Industries Development Bank of India established under section 3 of
the Small Industries
Development Bank of India Act, 1989 (39 of 1989),] the
Reserve Bank of India, the State Bank of India 7*[a corresponding new bank
constituted under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (5 of 1970), 8*[a corresponding new bank constituted
under section 3.of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), and any subsidiary bank]] as defined in the
State Bank of
India (Subsidiary Banks) Act, 1959 (38 of 1959);]

(c) "Board" means a Board of Conciliation constituted under this Act;

9*[(cc) "closure" means the permanent closing down of a place of employment or

part thereof;]

(d) "conciliation officer" means a conciliation officer appointed under this Act;

(e) "conciliation proceeding" means any proceeding held by a conciliation officer or

Board under this Act;
---------------------------------------------------------------------
1. Subs. by Act 36 of 1956, s. 3, for cl. (b) (w.e.f. 10-3-1957).
2. Subs. by Act 38 of 1959, s. 64 and Sch. III, Pt. II, for cl. (bb)
which was ins. by Act 54 of 1949, s. 3.3. Ins. by Act 28 of 1981, s. 40 and Sch. II
(w.e.f. 1-1-1982).
4. Ins. by Act 62 of 1984, s. 71 and Sch. III (w.e.f. 20-3-1985).
5. Ins. by Act 18 of 1964, s. 38 and Sch. II, Pt. II (w.e.f. 1-7-
1964).
6. Ins. by Act 39 of 1989, s. 53 and 2nd Sch. (w.e.f. 7-3-1990).
7. Subs. by Act 5 of 1970, s. 20, for "and any subsidiary bank"
(w.e.f. 19-7-1969).
8. Subs. by Act 40 of 1980, s. 20 (w.e.f. 15-4-1980).
9. Ins. by Act 46 of 1982, s. 2 (w.e.f. 21-8-1984).
148.1*[(ee) "controlled industry" means any industry the control of which by the
Union has been declared by any Central
Act to be expedient in the public interest;]

2* * * * *

(f) "Court" means a Court of Inquiry constituted under this

Act;

(g) "employer" means--

(i) in relation to an industry carried on by or under the authority of any department

of 3*[the Central
Government or a State Government], the authority prescribed in this behalf, or
where no authority is prescribed, the head of the department;

(ii) in relation to an industry carried on by or on behalf of a local authority, the chief

executive officer of that authority;

4*[(gg) "executive", in relation to a trade union, means the body, by whatever name
called, to which the management of the affairs of the trade union is entrusted;]

5* * * * *

(i) a person shall be deemed to be "independent" for the purpose of his appointment
as the chairman or other member of a Board, Court or Tribunal, if he is unconnected
with the industrial dispute referred to such Board, Court or Tribunal or with any
industry directly affected by such dispute:

6*[Provided that no person shall cease to be independent by reason only of the fact
that he is a shareholder of an incorporated company which is connected with, or
likely to be affected by, such industrial dispute; but in such a case, he shall disclose
to the appropriate Government the nature and extent of the shares held by him in
such company;]

7*[(j) "industry" means any systematic activity carried on by co-operation between

an employer and his workmen
(whether such workmen are employed by such employer directly or by or through
any agency, including a contractor) for the production, supply or distribution of
goods or services with a view to satisfy human wants or wishes (not being wants or
wishes which are merely spiritual or religious in nature), whether or not,--

(i) any capital has been invested for the purpose of carrying on such activity; or

(ii) such activity is carried on with a motive to make any gain or profit,

and includes--

(a) any activity of the Dock Labour Board established under section 5A of the Dock
Workers
(Regulation of Employment) Act, 1948 (9 of 1948)
(b) any activity relating to the promotion of sales or business or both carried on by
an establishment.

but does not include--

(1) any agricultural operation except where such agricultural operation is carried on
in an integrated manner with any other activity (being any such activity as is
referred to in the foregoing provisions of this clause) and such other activity is the
predominant one.

Explanation.--For the purposes of this sub-clause, "agricultural operation" does not

include any activity carried on in a plantation as defined in clause (f) of section 2 of
the Plantations Labour Act,
1951 (69 of 1951); or

(2) hospitals or dispensaries; or

(3) educational, scientific, research or training institutions;

or

(4) institutions owned or managed by organisations wholly or substantially engaged

in any charitable, social or philanthropic service; or

(5) khadi or village industries; or

(6) any activity of the Government relatable to the sovereign functions of the
Government including all the activities carried on by the departments of the Central
Government dealing with defence research, atomic energy and space; or

(7) any domestic service; or

(8) any activity, being a profession practised by an individual or body or individuals,

if the number of persons employed by the individual or body of individuals in relation
to such profession is less than ten; or

(9) any activity, being an activity carried on by a co-operative society or a club or

any other like body of individuals, if the number of persons employed by the co-
operative society, club or other like body of individuals in relation to such activity is
less than ten;]
---------------------------------------------------------------------
1. Ins. by Act 65 of 1951, s. 32.2. Cl. (eee) ins. by Act 43 of 1953, s. 2 omitted by Act
36 of 1964, s. 2 (w.e.f. 19-12-1964).
3. Subs. by the A. O. 1948, for "a Government in British India".
4. Ins. by Act 45 of 1971, s. 2 (w.e.f. 15-12-1971).
5. Cl. (h) omitted by the A. O. 1950.
6. Ins. by Act 18 of 1952, s. 2.7. Subs. by Act 46 of 1982, s. 2 (w.e.f. -------).

149.(k) "industrial dispute" means any dispute or difference between employers and
employers or between employers and workmen, or between workmen and workmen,
which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour, of any person;
1*[(ka) "industrial establishment or undertaking" means an establishment or
undertaking in which any industry is carried on:

Provided that where several activities are carried on in an establishment or

undertaking and only one or some of such activities is or are an industry or
industries, then,--

(a) if any unit of such establishment or undertaking carrying on any activity, being
an industry, is severable from the other unit or units of such establishment or
undertaking, such unit shall be deemed to be a separate industrial establishment or
undertaking;

(b) if the predominant activity or each of the predominant activities carried on in

such establishment or undertaking or any unit thereof is an industry and the other
activity or each of the other activities carried on in such establishment or
undertaking or unit thereof is not severable from and is, for the purpose of carrying
on, or aiding the carrying on of, such predominant activity or activities, the entire
establishment or undertaking or, as the case may be, unit thereof shall be deemed to
be an industrial establishment or undertaking;]

2*[(kk) "insurance company" means an insurance company as defined in section 2

of the Insurance Act, 1938 (4 of
1938), having branches or other establishments in more than one State ;]

1*[(kka) "khadi" has the meaning assigned to it in clause (d) of section 2 of the
Khadi and Village Industries Commission Act, 1956.(61 of 1956);]

3*[(kkb)] "Labour Court" means a Labour Court constituted under section 7:]

4*[(kkk) "lay-off" (with its grammatical variations and cognate expressions) means
the failure, refusal or inability of an employer on account of shortage of coal, power
or raw materials or the accumulation of stocks or the breakdown of machinery 5*[or
natural calamity or for any other connected reason] to give employment to a
workman whose name is borne on the muster rolls of his industrial establishment
and who has not been retrenched.

Explanation.--Every workman whose name is borne on the muster rolls of the

industrial establishment and who presents himself for work at the establishment at
the time appointed for the purpose during normal working hours on any day and is
not given employment by the employer within two hours of his so presenting himself
shall be deemed to have been laid-off for that day within the meaning of this clause:

Provided that if the workman, instead of being given employment at the

commencement of any shift for any day is asked to present himself for the purpose
during the second half of the shift for the day and is given employment then, he shall
be deemed to have been laid-
off only for one-half of that day:

Provided further that if he is not given any such employment even after so
presenting himself, he shall not be deemed to have been laid-off for the second half
of the shift for the day and shall be entitled to full basic wages and dearness
allowance for that part of the day;]
---------------------------------------------------------------------
1. Ins. by Act 46 of 1984 s. 2 (w.e.f. 21-8-1984).
2. Ins. by Act 54 of 1949, s. 3.3. Relettered by Act 46 of 1984, s. 2 (w.e.f. 21-8-
1984).
4. Ins. by Act 43 of 1953, s. 2 (w.e.f. 24-10-1953).
5. Subs. by Act 46 of 1984, s. 2 (w.e.f. 21-8-1984).

150-150A

(l) "lock-out" means the 1*[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;

2*[(la) "major port" means a major port as defined in clause

(8) of section 3 of the Indian Ports Act, 1908 (15 of
1908)

(lb) "mine" means a mine as defined in clause (j) of sub-

section (1) of section 2 of the Mines Act, 1952 (35.of 1952)];

3*[(ll) "National Tribunal" means a National Industrial

Tribunal constituted under section 7B;]

4*[(lll) "office bearer", in relation to a trade union, includes any member of the
executive thereof, but does not include an auditor;]

(m) "prescribed" means prescribed by rules made under this

Act;

(n) "public utility service" means--

(i) any railway service 2*[or any transport service for the carriage of passengers or
goods by air];

4*[(ia) any service in, or in connection with the working of, any major port or dock;]

(ii) any section of an industrial establishment, on the working of which the safety of
the establishment or the workmen employed therein depends;

(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 industry specified in the 4*[First

Schedule] which the appropriate Government may, if satisfied that public emergency
or public interest so requires, by notification in the Official Gazette, declare to be a
public utility service for the purposes of this Act, for such period as may be specified
in the notification:
Provided that the period so specified shall not, in the first instance, exceed six
months but may, by a like noti-
---------------------------------------------------------------------
1. Subs. by Act 46 of 1982, s. 2 (w.e.f. 21-8-1984).
2. Ins. by Act 36 of 1964, s. 2 (w.e.f. 19-12-1964).
3. Ins. by Act 36 of 1956, s. 3 (w.e.f. 10-3-1957).
4. Ins. by Act 45 of 1971, s. 2 (w.e.f. 15-12-1971).
5. Subs. by Act 36 of 1964, s. 2, for "Schedule" (w.e.f. 19-12-
1964).

150B

fication, be extended from time to time, by any period not exceeding six months, at
any one time if in the opinion of the appropriate Government public emergency or
public interest requires such extension;

(o) "railway company" means a railway company as defined in section 3 of the

Indian Railways Act, 1890 (9 of
1890)

1*[(oo) "retrenchment 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, but does not include--

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the contract
of employment between the employer and the workman concerned contains a
stipulation in that behalf; or

2*[(bb) termination of the service of the workman as a result of the non-renewal of

the contract of employment between the employer and the workman concerned on
its expiry or of such contract being terminated under a stipulation in that behalf
contained therein; or]
(c) termination of the service of a workman on the ground of continued ill-health;]

3*[(p) "settlement" means a settlement arrived at in the course of conciliation

proceeding and includes a written agreement between the employer and workmen
arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such manner as may be
prescribed and a copy
---------------------------------------------------------------------
1. Ins. by Act 43 of 1953, s. 2 (w.e.f. 24-10-1953).
2. Ins. by Act 49 of 1984, s. 2 (w.e.f. 18-8-1984).
3. Subs. by Act 36 of 1956, s. 3, for cl. (p) (w.e.f. 7-10-1956).

151.thereof has been sent to 1*[an officer authorised in this behalf by] the
appropriate Government and the conciliation officer;]

(q) "strike" means a cessation of work by a body of persons employed in any

industry acting in combination or 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 to accept employment;

2*[(qq) "trade union" means a trade union registered under the Trade Unions Act,
1926 (16 of 1926);]

3*[(r) "Tribunal" means an Industrial Tribunal constituted under section 7A and

includes an Industrial Tribunal constituted before the 10th day of March, 1957,
under this Act;]

2*[(ra) "unfair labour practice" means any of the practices specified in the Fifth
Schedule;

(rb) "village industries" has the meaning assigned to it in clause (h) of section 2 of
the Khadi and Village
Industries Commission Act, 1956 (61 of 1956) ;]

4*[(rr) "wages" means all remuneration capable of being expressed in terms of

money, which would, if the terms of employment, expressed or implied, were
fulfilled, be payable to a workman in respect of his employment or of work done in
such employment, and includes--

(i) such allowances (including dearness allowance)

as the workman is for the time being entitled to;

(ii) the value of any house accommodation, or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of food-
grains or other articles;

(iii) any travelling concession;

2*[(iv) any commission payable on the promotion of sales or business or both;]

but does not include--

(a) any bonus;

(b) any contribution paid or payable by the employer to any pension fund or
provident fund or for the benefit of the workman under any law for the time being in
force;

(c) any gratuity payable on the termination of his service;]

5*[(s) "workman" means any person (including an apprentice)

employed in any industry to do any manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward, whether the terms of employment be
express or implied, and for the purposes of any proceeding under this Act in relation
to an industrial dispute, includes any such person who has been dismissed,
discharged or retrenched in connection with, or as a consequence of, that dispute, or
whose dismissal, dischasrge or retrenchment has led to that dispute, but does not
include any such person--
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46
of 1950), or the Navy Act,
1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a

prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per mensem or exercises, either by the nature of the
duties attached to the office or by reason of the powers vested in him, functions
mainly of a managerial nature.
---------------------------------------------------------------------
1. Ins. by Act 35 of 1965, s. 2 (w.e.f. 1-12-1965).
2. Ins. and Subs. by Act 46 of 1982, s. 2 (w.e.f. 21-8-1984).
3. Subs. by Act 18 of 1957, s. 2, for cl. (r) (w.e.f. 10-3-1957).
4. Ins. by Act 43 of 1953, s. 2 (w.e.f. 24-10-1953).
5. Subs. by Act 46 of 1982, s. 2 (w. e. f. 21-8-1984).

152.2A.

Dismissal, etc., of an individual workman to be deemed to be anindustrial dispute.

1*[2A. Dismissal, etc., of an individual workman to be deemed to be an industrial

dispute.- Where any employer discharges, dismisses, retrenches, or otherwise
terminates the services of an individual workman, any dispute or difference between
that workman and his employer connected with, or arising out of, such discharge,
dismissal, retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other workman nor any union of workmen is a party to the
dispute.]