Introduction to

labour laws
 What is Labour Law?
Also known as ‘the law of employment’

Rules, Bylaws, Administrative actions,

precedents etc.

For the purpose of:

Cohesiveness and regulation of:

Inter-intra labour/employer relations

Labour = labourers
 Contd..

Factory(actual Industry(larger
No .of
Manufacturing in scope and
work(men)/er
process) application)
 Classification

• Regulation of employment/non
employment
• Working Conditions
• Compensation
• Labour Amelioration
• Social Security
• Industrial Relations
 Organized
/unorganized
• Regulations

• Payments

• Security

• Benefits

• Termination

• Registered
 Contd..

• Occupation
• Nature of Employment
Tailors, beedi rollers, domestic workers,
fishermen, landless farmers, crop-share workers,
hawkers, vegetable sellers, barbers, loaders,
unloaders, rickshaw pullers,
Drivers of animal driven vehicles etc..
 The background..

• England, France and Germany

• Labour regulations against child
labour in 1818, 1843, 1888
• Working conditions, employment
during pregnancy , working hours,
dangerous employments etc.
 CONTD…

• ILO :League of Nations: end of WW I :

Reconstruction
• Whitley 4 Commission( Great Britain)
• industrial councils be established throughout
the world
• Labour and Socialist Conference (Great
Britain, France, Belgium and Italy)
INTERNATIONAL LABOUR RIGHTS
BODY (1919)
 Contd..
• American Federation of Labor (AFL)

• incremental improvements via the collective bargaining

process

• international parliament to enact labour laws which each

member of the League would be required to implement.

• two delegates to the parliament, one each from labour and

management.

• An international labour office would collect statistics on

labour issues and enforce the new international laws.
 Contd..

• Opposed to the concept of an international

parliament
• United States, Samuel Gompers proposed that
the international labour body be authorized
only to make recommendations, and that
enforcement be left up to the League of
Nations
• Americans made 10 proposals. They were
adopted without change.
• That labour should not be treated as a
commodity;
• all workers had the right to a wage sufficient to
live on;
• women should receive equal pay for equal
work.
• The report became Part XIII of the Treaty of
Versailles.
• The first annual conference of 1919 in
Washington DC and adopted the first six
International Labour Conventions
• hours of work in industry,
unemployment, maternity protection,
night work for women, minimum age
and night work for young persons in
industry.
• The prominent French socialist
Albert Thomas became its first
Director General. The ILO became
a member of the United Nations
system after the demise of the
League in 1946.
 ilo

• The only tripartite U.N. agency

• governments, employers and
workers of 187 member States
• to set labour standards, develop
policies and devise programmes
promoting decent work for all
women and men.
 Contd..

• International labour Conference sets the International

labour standards and the broad policies of the ILO.
(annual)

• Governing body is the executive council of the ILO.

Decides ILO policy (thrice,budget)

• International Labour Office: permanent secretariat

overall activities under Governing Body and under the
leadership of the Director-General .
 Contd..

• ILO regularly examines the

application of standards in member
states and points out areas where
they could be better applied.
• social dialogue and technical
assistance.
• Standards supervisory system

• Ensure the implementation of the conventions ratified

by countries

The Programme and Budget of the Organization

strategic objectives

expected outcomes

approved every two years by the International Labour

Conference.
• Employment and Decent Work for Peace and
Resilience Recommendation, 2017

• Global Commission on the Future of Work ILO

centenary , 2019

• Article 22: Annual reports on ratified Conventions

• Article 23: Examination and communication of

reports
 Introduction to
Industrial Disputes Act

S
 Background

S Employers’ and Workmen’s Disputes Act, 1860

S This Act weighed much against the workers and was

therefore replaced by the Trade Disputes Act, 1929.

S special provisions regarding strikes in public utility services and

general strikes affecting the community as a whole
 Contd…

S Rule 81-A of the Defense of India Rules

S compulsorily to conciliation or adjudication

S making the awards legally binding on the parties

S prohibiting strikes or lock-outs during the pendency of conciliation

or adjudication proceedings (two months thereafter).

S Blanket ban on strikes

 Contd..

S Rule 81-A was about to lapse on 1st

October, 1946
S Retained by Ordinance
S Industrial Disputes Act, 1947.
 Main features

S Investigation and settlement of industrial disputes

S Conciliation and other peaceful means

S This Act extends to whole of India.

S self-contained code to resort to industrial arbitration for the

resolution of existing or apprehended disputes
 Contd..

S Reference of dispute

S Payment of compensation on closure/lay off

S Prior permission for closure/retrenchment/in PUS

S Strike and lockout prohibitions

S Conciliation compulsory in all PUS

 Contd..

S Individual dispute as industrial dispute( amendment of

2010)

S Works committee (amendment of 1976)

S Public/private

S Central/state govt owned

S Amendment of 1982(sec 2,7 and 22 not notified till date)

S Isolated agricultural operations excluded

S However, integrated operations are not

S Research/training/charitable institutions

S Less than 10 individuals

S Domestic services/cooperative societies, sovereign functions

of state etc.
 Constitutional validity
challenged

S Niemla Textiles v. 2nd Punjab industrial Tribunal (AIR 1957

SC 329

S Sec 10: reference by Govt: existing or apprehended

industrial dispute : NO RULES TO JUSTIFY DIFF B/W
PARTIES SIMILARLY SITUATED OR NOT

S Art 14

S const. validity upheld

 Industry (timeline)

S 1947(original)2 (j)

S 1978(Bangalore water supply case)

S 1982(amended definition)

S 2002(gajanan maharaj snasthan writ to notify)

S SC following Bangalore water supply till date

S Triple test/dominant nature test

 comparison
S 1947
S Business/trade/manufacture/call
ing of employees includes any
calling service, employment
handicraft or industrial
occupation, avocation of
workmen
S 1978/1982
S Cooperation b/w employer-
employee
S Systematic activity
S For the satisfaction of human
wants/wishes
S Excluding spiritual ones
 Contd..

S Industry (1947-1978)

S Municipal Corporation as an industry (DN Banerjee

v. PR Mukherjee) 1953: SC
S Hospital (State of Bombay v. Hospital Mazdoor
Sabha) 1960 : SC
University of Delhi v. Ram Nath (1963) : Univ not an
Industry
S Madras Gymkhana Club, Cricket club of India (1969,1968)

Bangalore Water Supply v. A Rajjapa (1978)

Justice Bhagwati, KrishnaIyer (seven judge
Bench)
Wider definition of industry was given
 Contd..

S UOI v. Sh Gajanan Maharaj Sansthan (2002)

S State of UP v. Jaibir Singh (2005)

S Bharat Bhawan trust v. Artists Assn. (2001)

S : promotion of art and preservation of artistic talent not a large

scale activities.
 Workmen

S Section 2(s) any person employed

S to do any manual, unskilled, skilled, technical, operational,

clerical or supervisory work for hire or reward

S and includes even dismissed, discharged or retrenched

workmen in connection with Industrial Disputes
 Contd..

S I and II are applicable to Armed Forces and Police Service.

The exceptions in III and IV take employees employed
mainly in managerial or administrative capacity out of the
definition of workman. The Supervisors drawing wages
exceeding Rs 10,000/- is also out of the definition of
Workman
S Mukesh Tripathi v. LIC (2004)8 SCC 387

S Its not sufficient to prove that the person in question has not been
covered by any of the four exceptions
 Industrial dispute

S Dispute/difference between

S Employer-employer

S Employer-workmen

S Workmen-workmen
 Connected with

S Employment or non employment

S Terms of employment

S Conditions of labour OF ANY PERSON( TRUE and

substantial interest)

S IN relation to any workman/men or any person (interested as a

body TU)
 Contd..

S Tata chemicals v. workmen( AIR 1978 SC SC 828)

S Workmen v. Dimakuchi Tea Estate ( 1958 SC 353)

Individual dispute as industrial
dispute

S Section 2-A if employer

S discharges, dismisses, retrenches or otherwise terminated the

services of any individual workman

S any dispute arising out of such discharge, dismissal, retrenchment

or termination shall be deemed to be an industrial dispute

S notwithstanding that no other workman nor any union of workmen, is a

party to the dispute.
S Any workman may make an application directly to the
labour court (3 fortnights when an application was made
before the conciliation officer).
S The said application however should be made within 3 years
of the date of dismissal, discharge, retrenchment or
termination of service.
S The court shall proceed to hear the matter as if it was
referred to it U/S 10 of the ID Act.
 IDAA 2010

S It is only when a dispute is connected with a discharged,

dismissed retrenched or terminated workman that it shall be
treated as an industrial dispute.

S If the dispute or difference is connected with some other

matter e.g. payment of bonus/ gratuity etc. then it would
have to satisfy the test laid down in judicial decisions
 Contd..

S PNb v. Ashwini K Taneja (2004)

S SC held claim of retirement benefits is an industrial dispute

S Pankaj Gupta v. State of J&K(2004)

S Regularization claim

S Standard Vacuum Company v. workmen (1960)

S Abolition of contract system

 9C Grievance Redressal
Machinery

S Every industrial establishment employing

twenty or more workmen shall have one
or more Grievance Redressal Committee
for the resolution of disputes arising out
of individual grievances
AUTHORITIES UNDER IDA,
1947
 Contd..

Pre dispute Efforts

 Statutory Requirements
 Grievance Redressal Committee ( 2010) 9C
 Works Committee (S 3)
 Minimum 100 workmen
 Preceding 12 months
 Authorities Contd..

Conciliation( sec 3-5)

Adjudication(sec 7,7A,
&7B)
Arbitration (10 A)
 Enquiry

 Court of Enquiry ( sec 6)

 Contd..

 North Brook Jute Company v. Workmen (1960)

 Works committee cannot supersede trade union
 Dissolved as well
 Conciliation officer

 create congenial atmosphere within the

industry and reconcile the disputes of the
workers and the employers
 Administrative duties not judicial
 App govt
 Permanent/specific areas/public servant
 Powers and procedure

 11: prior notice: entry in the premises,

existing or apprehended dispute
 Report within 14 days

 No authority to examine on oath and

summon a witness
 Duties of conciliation officers

 12
 Discretionary Mandatory
 Non PUS PUS
notice u/22 has been given
Not competent to adjudicate
Memorandum of settlement
Report of failure
 Board of conciliation

 Reference starts here

 Duties u/13

App govt. equal numbers representing the parties to

the disputes as the appropriate Government thinks fit.
Chairman (independent person)2 -4 members

Within 2 months
 Powers u/s11

 Enforcing attendance
 Examination on oath
 Production of documents
 Issue of commissions
 Judicial proceedings
 Cases

 JC Pvt Ltd. V. Central Govt. Adm Tribunal

AIR 1975SC 171

 A person whose appointment has

not been done through the
notification in the official gazette
as required under the Act, would
not be a conciliation officer
 Contd..

 Som Vihar Apartment Owners

Housing and Mgt v. Workmen
(2002 SC 2530)
 Housing societies who employ
housekeeping staff are not industry,
therefore requirements as to
conciliation not mandatory
 COURT OF ENQUIRY

 App Govt
 One independent person as chairman
 Reference mandatory
 Matter relevant or connected to
 Powers 11(2)
 Duties u/14
 6 months after reference
 RIGHT TO STRIKE /LOCKOUT /PUNISH REMAIN
UNAFFECTED
 Adjudicating Authorities

Labour Court (7)

Labour Tribunal(7A)
National Tribunal(7B)
 LABOUR COURT

App Govt.
One person only
Adjudication of industrial
dispute
Specified in schedule 2
 Qualifications of presiding officer 7 (3)

 1956, 1982, 2010

 Judge of a High Court.
 District Judge or an Additional District Judge(3 years)
 Indian Legal Service in Grade III. (3 years)
 presiding officer of a Labour Court constituted under any
State Act (five years)
 he has held any judicial office in India (seven years)
 Deputy Chief Labour Commissioner or Joint
Commissioner degree in law.(7 {3}years of experience as
Conciliation Officer)
 unless he resigns from the service of the Central
Government or State Government
 Schedule 2

 Legality of standing orders

 Application and interpretation of standing
orders
 Discharge and dismissal
 Reinstatement/grant of relief/wrongful
dismissal
 Illegality of strike /lockout
 Withdrawal of concession or privilege
 Functions

 Adjudication of matters in schedule 2

 Other functions
 Acts on reference
 Limited jurisdiction over schedule 3 when the
dispute is not going to effect more than 100
workmen
 Jurisdiction under sec 33-C(amount
determination/mode of recovery of money
 However there should be no dispute regarding
computation of amount
 Labour Tribunal(7A)

 Official gazette( together with names of the

person constituting)
 Same qualifications as labour court(1984-
2010)
 Except Presiding officer of LC under state
act for 3 years/judicial office for 7 years
 However, can appoint two persons as
assessors to advice the tribunal
 Jurisdiction (schedule 2 and 3)

 Wage period/mode of payment

 Dismissal
 Discharge
 Pension
 Bonus/Gratuity
 Hours of work /rest intervals
 Leave with wages/holidays
 Profit sharing
 Shifts/classification of grades
 Compensatory and other allowances
 NATIONAL TRIBUNAL(7B)

 Constituted by central Govt

 Notification can be for more than one state
 If the dispute is/or likely to effect
 Jurisdiction over schedule 2 and 3
 Any other matter not specifically mentioned
therein
 Judge of a high court or above
 Powers and procedure(11)

 Powers of civil court

 To determine the costs and party responsible to pay
the same
 Every award/order/settlement shall be executed
u/order 21 CPC
 2010: award can be transmitted to civil court for the
purpose of execution
 Duties

 Ordinarily with in 3 months

 As expeditiously as possible
 to be published with in 30 days
 Appeal under 136/226
 Arbitration

 10A. Voluntary reference of disputes to arbitration.

employer and the workmen
 agree to refer the dispute
 any time before the dispute has been referred under
section 10
 by a written agreement
 as an arbitrator or arbitrators as may be specified in
the arbitration agreement.
 even number of arbitrators
 another person as umpire who shall enter upon the
reference, if the arbitrators are equally divided in
their opinion, and the award of the umpire shall
prevail and shall be deemed to be the arbitration
award.
 A copy of the arbitration agreement
shall be forwarded to the appropriate
Government and the conciliation officer
 appropriate Government shall, within
one month from the date of the receipt
of such copy, publish the same in the
Official Gazette.
The arbitrator or arbitrators
shall investigate the dispute and
submit to the appropriate
Government the arbitration
award signed by the arbitrator
or all the arbitrators
 Prohibition of continuance of strike/lockout
Industrial Incident No of workmen Nature of work Notice period Continuous Compensation
Service
LAY OFF Below 50 Irrespective NA NA NA
2(kkk)+25(C) + 50-100* Not {seasonal NA Min. One year Max 45 days
Intermittent
25(M)+25(Q) construction}
100 or more* (Not applicable on Prior permission Do Penalty provided +do
casual and of App Govt., it has
badli)+do to revert in 60 days
+Copy to workmen
Retrenchment Below 100* Not {seasonal One month Min. One year YES
2(oo)+25(F)+25(N)+25(Q) Intermittent
construction}
100 or more* Not {seasonal 3 months + Prior Min. One year Yes, if permission granted+ Penalty
Intermittent} permission of App provided
Govt. it has to
revert in 60 days
+Copy to workmen
Below 50 Irrespective NA NA NA
CLOSURE Below 50* {Seasonal NA NA NA
2(cc)+25(FFA)+25(FFF)+ Intermittent
construction}+all
25(O)+25(R) other categories
50-100* Not {seasonal 60 days to app Min. One year YES (as 25F)
Intermittent govt.
construction}
100 or more* Not {seasonal 3 months + Prior Working YES
Intermittent} permission of App Immediately
Govt. it has to before application
revert in 60 days
+Copy to workmen
*Average of preceding 12 months (for details please refer c VA,VB of the Act)

LAY OFF /
RETRENCHMENT/
CLOSURE
Lecture i of iii

Dr Shiva Satish Shrada

2
LAY OFF

 2(kkk)
 The failure, refusal or inability of an employer account of
shortage of
 coal, power or raw materials
 or the accumulation of stocks or
 the breakdown of machinery [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.

3
APPLICABILITY

If the industrial establishment is

employing less than 50 workers, , the
provisions relating to lay off provided in
Chapter V-A are not applicable, thus the
employer may lay off without prior
permission.

4
Chapter VA(Lay off and retrenchment)
Chapter VB(special provisions not less than
100 workmen/not seasonal character)

5
PRECONDITIONS FOR COMPENSATION

 Continuous Service 25 (b)2

 Preceding 12 months: mine: 190days
 Ground: 240 days
 Preceding 6 months mine : 95 days
 Ground :120 days
 Sickness, medical leave, legal strike, lockout are not interruptions in
continuous service

6
COMPENSATION SHALL NOT BE PAID

If workman refuses to accept

alternative employment
Doesn’t present himself to
work
Lay off is due to strike

7
MEANING OF RETRENCHMENT
 2(oo)
 Termination of services
 Any reason what so ever(other than punishment)
 Does not include:
 Voluntary retirement/superannuation /nonrenewal of
contract/continued ill health

8
VALID RETRENCHMENT

25 F (chapter V A) Continuous service for one

year
One month notice with reasons of
retrenchment
If no notice then wages to be paid in lieu of
such notice
Retrenchment compensation to be paid in each
case

9
25 N (VB)

APPLICABILITY : 100 OR MORE IN THE

PRECEDING 12 MONTHS ON THE
AVERAGE
Three months notice to the workmen
Prior permission of the appropriate govt.
Compensation to retrenched workmen

10
GRANT OR REFUSAL OF PERMISSION (VB)

By authority designated by app govt.

After inquiry and hearing
Deemed permission if no
communication for 60 days
Reference to tribunal : with in 30 days

11
PROCEDURE FOR RETRENCHMENT

25 G: last come, first Go

Reinstatement is possible by order
of court/tribunal if retrenchment
turns out to be illegal

12
VB

Chapter V-B of the Industrial

Disputes Act prohibits lay
off/retrenchment in case of industrial
establishments employing 100 or more
workers without prior permission of
the appropriate government or
authority

13
Strike and lockout
C-V (22-25)
Strike
Concerted refusal to work
 Collective Stoppage
By body of persons employed
Acting in combination (Trade union)
To accept employment
Types
 General

 Sympathetic strike
 Go slow
 Tools down
 Hunger strike
 Work to rule
Contd..
 AllIndia Bank Employee’s Assn v. National Industrial
Tribunal( 1963 SC): Right to strike is not a fundamental
right
 TK Rangarajan v. Govt of Tamil Nadu(2003)
 Govt.servants have no fundamental or equitable right
to go on strike
Lockout 2 (l)
 By employer

 Temporarily closing down

 Suspension of work

 Refusal by employer to employ any number of persons

Suspension of work must be with the intention; otherwise it will not amount
to lockout(Management of GW Ltd. 1997 )
Prohibition on Strike or lockout(22)
 Specific prohibitions

 Public utility services

 No person employed/no employer

 Strike(in breach of contract)/lockout

 Without giving six weeks notice/Within 14 days

 Before the expiry of date mentioned in the notice

 During pendency of conciliation proceedings and 7 days after that

Report of notice
 PUS

 By the employer

 If received / If given

 To app govt.

 Within 5 days
Exception to report of notice
In pus, if strike or lockout has
already commenced, then
requirement of notice of
lockout/strike is waived off by the
legislature on account of 22(8)
General prohibitions (23)
 On PUS and Non PUS

 During pendency of:

 conciliation proceedings and 7 days thereafter
 proceedings before: Labor Court /tribunal/National
tribunal: 2 months
 Of arbitration : 2 months
 During any period wherein award or settlement is in
operation
Illegal strike and lockout
 Sec 24

 Declared without prior notice

 During pendency

 Continued in contravention of order of govt. u/10(3):if the dispute is

referred to LC/LT/NT

 Continued in contravention of order of govt. u/10-A(4A):if the dispute is

referred to arbitration
Protection of refusing person
 Sec 35: refusal to participate in illegal strike
 Cant be put at the disadvantageous position
 Expelled from the trade union
 Directly
or indirectly at any loss on account of
his non participation
An illegal strike cannot be justified
 Bank of India v. TS Kelawala (1990)

 Both legal and illegal strike invite deduction of wages

 HMT Limited v. Union (1997)

 Employees not entitled to wages during the strike period notwithstanding the
fact it is justified

 Syndicate bank v. Umesh Nayak(1995): SC workmen may claim wages for strike
which is both legal and justified
 TRADE UNIONS

LAW AND
LEGALITY
 One Sitaraman was appointed as truck driver for
BDM logistics department in 1990. Due to change in
management policies in 1993, it was quintessential
to discharge some laborers. He met with an accident
on 29th march, 1994 however he resumed duties
within three months but as a cleaner. A
retrenchment notice on 5th September 1994 was
issued whereby Sitaraman along with 57 others was
notified by a general notice to be retrenched.
 After 15 days of such notice new driver vacancies
were floated. Suggest him the remedies
Prologue incident
 Salient features

• Indian Trade Unions Act, 1926.

• Registration of trade unions, their rights, their
liabilities and responsibilities.
• Utilization of funds funds, legal and corporate
status to the registered trade unions.
• Protection from the from civil or criminal
prosecution
• The Act is applicable not only to the union of
workers but also to the association of employers.
• It extends to whole of India.
 Amendment of 1947( not notified as yet )

 Recognition of Trade Union by the employer.

 Dispute as to recognition shall be tackled by labour
Court
 Formal recognition can also be ordered by labour
court if within three months of application, employer
fails to recognize. Right to negotiation
 Refrain from unfair labour practices.
 CONTD..

 Certain Acts, namely, the Societies

Registration Act, 1860; the Co-
operative Societies Act, 1912;
and the Companies Act, 1956
(2013) shall not apply to any
registered trade union, and that the
registration of any such trade union
under any such Act shall be void.
 DEFINITIONS

 2 (g) Trade dispute : same as industrial

dispute
 SOME DIFFERENCE BETWEEN THE
PARTIES IS MANDATORY
 Individual dispute can not be trade dispute
in Newspaper Ltd. v. SIT, U.P AIR 1957 SC
532
 Unless that is supported by majority of
workmen
 2 (h)'trade union'

Any combination: whether temporary or permanent,

Primarily for the purpose of regulating
• Relations between workmen and employers
• between workmen and workmen
• between employers and employers, or
For imposing restrictive conditions on the conduct of
any trade or business,
It also includes any federation of two or more trade
union
 Trade union shall not effect

• Partners’ Agreement to do business

• Agreement of the Employment
• Agreement for the consideration of the sale of the
goodwill

FCI Staff v. FCI (1995):LL.J 272 (SC)

• Secret ballot system can be adopted to determine
representative trade union in case more than one
claim representative character
 REGISTRATION OF TRADE UNION

 Registrar appointed by appropriate Govt. for the

purpose (sec3)
 Mode (s4) : min 10% or 100 workmen are
MANDATORY required to be MEMBERS to register
a trade union
 minimum 7 Workmen are required to be members
on the date of application of registration
 If half members take back their names in writing,
then application for registration shall be void.
 Registration application

Names, occupations and

addresses of the members
making the application; The
name of the trade union and the
address of its head office; The
titles, names, ages, addresses of
members/office bearers
 The registered trade unions
(workers & employers) are required
to submit annual statutory returns
to the Registrar
 membership, general funds,
sources of income and items of
expenditure and details of their
assets and liabilities (sec 8)
 Rules to be formulated on ..

 Objectives, purposes for the utilization of general

funds, maintenance of list of members etc
 Adequate facilities for the inspection by the members
and office bearers
 Admission of ordinary members and temporary and
honorary members as office bearers(half of the office
bearers shall be persons actually employed in the
industry (unorganized sector) s.22
 Contd..

Payment of subscription fees

Benefit conditions, manner to
amend rules, elections, duration
of 3 years for office bearers,
rules as to safe custody of funds,
annual audit, adequate facilities.
 Bokajan Cement Corporation
Employees Union v. Cement
Corporation of India (2004)LL.J 197
SC
A retrenched employee would not
automatically cease to be the member
of the trade union as no provisi0n in
TU Act
 CERTIFICATE OF REGISTRATION

Sec 9 shall register the trade union.

Registrar may shall issue a certificate of
registration as a conclusive evidence of
registration of that trade Union.
 Cancellation of registration 10

 By the registrar
 On the application of trade union/majority
 If he is satisfied that it has been obtained by fraud or
mistake (min 2 months notice mandatory)
Grounds:
ceased to exist, contravened law, requisite number of
work men, rescinded any rule of t.u
 Effects/Advantages of Registration:
Incorporation
 S 13

 Body corporate, seal, perpetual

succession,
 hold movable and immovable
properties,
 sue and be sued, contract through
agencies
 LIABILITIES OF REGISTERED TRADE UNIONS

 SEC 15,16 provide for the manner

and matter on which the funds may
be spent by the trade union; 15
deals with the frame work to spend
general funds whereas 16 provides
for the separate political fund of the
trade union
 General funds : s 15

(a) salaries, allowances and expenses to office-bearers

of the Trade Union;
(b) for the administration of the Trade Union,
including audit of the accounts of the general funds
of the Trade Union;
(c) the prosecution or defence of any legal proceeding,
 protecting any rights of the Trade Union
d) the conduct of trade disputes and payment of the
compensation of members for loss arising out of
trade disputes;
(f) allowances to members or their dependants on
account of death, old age, sickness, accidents or
unemployment of such members;
policies of assurance on the lives of members, or
under policies insuring members against sickness,
accident or unemployment;
 Contd..

educational, social or religious benefits for members

(including the payment of the expenses of funeral or
religious ceremonies for deceased members) or for
the dependents of members;

periodical publication mainly for the purpose of

discussing questions affecting employers or
workmen;
expenditure by contributions
in any financial year shall not
exceed one-fourth of the
combined total of the gross
income in that year
 Separate POLITICAL FUND

 Registered Trade union may raise political funds for

civic and political purposes
 Contributions levied specially for political fund
 No contribution from general fund can be exploited
for political purpose
 CIVIL AND POLITICAL OBJECTIVES
 For election as amember of the constitutent
assembly/other body under const of India
 Holding of meeting/distribution of literature for the
support of candidate
 Contd..

 Maintenance of elected person, registration

of electors etc
 Holding political meetings and related
matters
 Selection conference for the candidature
 CONTRIBUTION TO POLITICAL FUND
CAN NOT BE COMPELLED
 IMMUNITY TO TRADE UNIONS

 S. 17 : In the case of criminal conspiracy under

section 120-B of IPC, committed by an office bearer
or a member. However, this immunity is partial in
the sense that it is available only with respect to the
legal agreements created by the members for the
furtherance of valid objects of a trade union as
described in section 15 of the Act.
 West India Steel Company Ltd. vs Azeez 1990 Ker. 133

 A trade union leader obstructed work inside the

factory for 5 hrs while protesting against the
deputation of a workman to work another section.

 A trade union leader has no immunity against

disobeying the orders. A trade union leader or any
worker does not have any right by law to share
managerial responsibilities.
 IMMUNITY FROM CIVIL PROCEEDINGS

 Section 18 In general, a person is liable in torts for

inducing another person to breach his contract of
employment or for interfering with the trade or
business of another.
 inducement is in contemplation or furtherance of a
trade dispute is immune .
 the inducement should be lawful. There is no
immunity against violence, threats, or any other
illegal means.
MINIMUM WAGES ACT,
1948
https://labour.gov.in/sites/default/files/MX-
M452N_20170704_171116.pdf
Prologue
• Minimum Wage fixing Machinery Convention, Geneva
• Art 223-233 of International labour Code, 1928
• Where no express arrangements exist
• Sweated work/un organized sector
• Absence of machinery for regulation of machinery
• Wages and subsistence level inadequate
Wage structure

•
•
•
Minimum Wage(15th session of labour conference )
• Kamani Metals and Alloys Ltd. v. Workmen AIR 1967
• Bottom of different categories
• Lowest limit below which wages cannot be allowed to sink
in all humanity.
• Determined on the cost of living and normal reasonable
needs of the worker
• Hydro Eng. Works v. Workmen 1969 SC
• Not only for bare subsistence but for preservation of
worker
• (three consumption units +one earner
1+0.8+1.2)
• Calorie intake/ 72 yards cloth/ light,
fuel/rent of minimum area govt.
approved)
• Minimum wage Advisory Board 27th
Feb 2019 link
• https://labour.gov.in/sites/default/files
CAB%20notification.pdf
Fair wages and living wages
• Express Newspapers Ltd. V UOI 1958 SC
• The fair wage is a mean b/w the living wage and the
minimum wage.
• Lower limit is above min wage and upper limit is below
living wage. Limit of fair wage depends upon the capacity
of industry to pay
• LIVING WAGE
• Highest of the different categories of wages(Hindustan
Lever v. Workmen 1963 SC
• Highest state of industrial efficiency.
Minimum
wages Act,
1948 -II
Wages 2(h)
 All remuneration ( on fulfillment of
contract)
 Expressed in terms of money*(11)+HRA**
 Excludes:
 Value of house accommodation/supply
of light/water/medical attendance/any
other specific exclusion by govt.
 Employer’s contribution in
Pension/PF/TA/Gratuity
Wage fixation
 App govt( central govt.)
 Railways, mines, oilfields, ports, any
other Corpn. estd by central govt.
 All other establishments: state govts.
 Constitutional validity : Bijoy Cotton
Mills v State of Ajmer 1955 SC
Exclusions( S.3)
 Dispute relating to payment of wages is
pending before any authority
 Award in operation
 Any notification is in operation
 Less than 1000 in a state
However if after enquiry the number is
found to be exceeded, minimum wages
may be fixed
Minimum Wages for:
Time work
Piece work
Guaranteed time rate
(pieces in stipulated time)
Overtime rate
Contd..
 Scheduled employments
 Classes of work in different scheduled
employments
 Different localities
 Adults/children/adolescents
 /hour
 /day
 Month
 Other wage period
MINIMUM RATES OF WAGES(4)
 Basicrate of wages + special
allowance(cost of living index)
 OR BRW + with/out cost of living
allowance + cash value of concessions
 Or All inclusive rate
 Cost of living allowance, Cash value of
concessions,( by app govt.)
Procedure for fixing and
revising MW(5)
 Committee method( seek advice and
hold enquiries)
 Notification Method(publish proposals, 2
months time ,duly received proposals to
be considered, in force after 3 months )
 Penalties in sec 22
 Contracting out
 Advisory Boards(7,8)
PAYMENT OF WAGES
ACT,1936
28/3/37
 ESSENTIAL FEATURES
 Avoid unnecessary delay in payment of wages
 To prevent unauthorized delays to the persons
employed in an industry

 Wages in particular form and at regular intervals

 Royal commission of labour
 Payment of wages to employed persons.
 Applicable on
 Persons employed in factory
 Railways
 Industrial and other establishments
 App govt. to ensure ( 2005)
 3 months prior notice by the govt.
 Responsibility of enforcement(central govt)
 Railways, mines, oilfields, transport services rest
state Govt.
 Contd..
 Employed person and employee include legal
representatives for the purpose of this Act.

 Act applies to wages payable to an employed

person if wages DONOT EXCEED 24000/- Rs

 Notification no 2459 w.e.f. 27th august, 2017

 https://labour.gov.in/sites/default/files/Payment%
20of%20Wages%2024000.pdf
 Payment of wages
Employer with all
classifications u/s 3
Fixation of wage period
Time of payment of
wages
 Deductions(7-12)
 Every payment payable by employee
to employer
 Loss of wages due to good and
sufficient cause /stoppage of
increment an efficiency bar
 Reduction to a lower post, suspension
shall not be deemed to be the
deduction
 Authorized deductions
 Fines
 Absence from duty
 Damage or loss of goods
 Deduction for house accommodation given by
employer, amenities excluding raw materials and
tools

 Recovery of advances/interest/loans/home loans

 TDS/court order/PF/insurance/TU subscription
 Contd..
 In case of railway employees on account of
acceptance of counterfeited notes/mutilated
/damages/failure to bill/invoice/fare freight etc.

 Unnecessary rebates
 Cooperative societies not exceeding 75%
 In any other case: not exceeding 50%
 Authorities to implement
 14-17
 Wage inspectors
 Authority to hear claims
 Appeal to distt. court /small causes court
EMPLOYEES STATE INSURANCE
ACT, 1948
APPLICABILITY

 2(12) non-seasonal factories employing 10 or

more persons.
1(5) to shops, hotels, restaurants, cinemas
including preview theatres, road-motor
transport undertakings and newspaper
establishments employing 10* or more
persons.
extended to Private Medical and Educational
institutions employing 10* or more persons in
certain States/UTs.
16 May 2019 2
 The Act extends to the whole of India.
It applies to all factories (including
Government factories but excluding
seasonal factories) employing ten or
more persons and carrying on a
manufacturing process. (sec 38)

16 May 2019 3
Employees' State Insurance Corporation

 Members representing employees,

employers, the Central and State
Government, representatives of Parliament
and medical profession.
 headed by the Union Minister of Labour, as its
Chairman, Director General, appointed by the
Central Government functions as its Chief
Executive Officer.

16 May 2019 4
 responsible for coordinated policy planning
and decision making for growth,development
and efficacy of the scheme.
 A Standing Committee, constituted from
amongst the members of the Corporation,
acts as an Executive Body.
 Medical Benefit Council( CG) advises the
Corporation on matters related to effective
delivery of medical services to the Beneficiary
Population.
16 May 2019 5


 Once governed, Shall continue to
be governed by its provisions even
if the number of workers employed
there in falls below the specified
limit
 or the manufacturing process
therein ceases to be carried on with
the aid of power, subsequently.
16 May 2019 6
Employees Entitled
 Every employee (including casual and
temporary employees), whether employed
directly or through a contractor, who is in
receipt of wages up to Rs. 21000/-p.m. is
entitled to be insured.
 Apprentices engaged under the Apprentices
Act are not entitled to the E.S.I. benefits.
ESIC v. TATA Eng Works (AIR 1976 SC 66)

16 May 2019 7
Cases

 Bombay Anand Bhawan Restaurant v. Dy. Dir.

ESIC 2009 LLJ 413 SC
Selling coffee/sweets prepared with LPG and
employed 10 persons; factory and hence covered
under ESIC Act
CMC v. ESIC 2001 LLJ 18 SC
Maintaining X-ray and other support system of
hospital, held to be a factory
Osmania Univ. Regional Dir, ESIC 1986 SC 136
Printing Dept of Univ. is a factory
16 May 2019 8
 M.D Hassan Co-operative Milk Producer ’ s
Society v. ESIC 2010 SC 860
Milk collecting diary not a factory as
employees not directly employed by
employer no control over them, no payment
of wages

16 May 2019 9
CONTRIBUTIONS

 ALL EMPLOYEES TO BE INSURED [Section

38]

Factory or establishment having more than

10 employees employed therein, contribution
is either paid or payable to him

16 May 2019 10
CONTRIBUTION. [Section 39]

Employer and employer liable for

payment of the contribution to
the Employee State Insurance
Corporation.
 The rate of contribution paid by
employer and employee will be
decided by the central
government.
16 May 2019 11
Contd..

 Currently, the employee’s contribution rate

is 1.75% of the wages and that of employer’s
is 4.75% of the wages paid/payable in respect
of the employees in every wage period.
(1%/3% newly implemented areas 2016)
 @ 12% of interest per year should be paid If
employer delays in payment of the
contribution to ESI corporation.

16 May 2019 12
PRINCIPAL EMPLOYER TO PAY CONTRIBUTIONS
IN THE FIRST INSTANCE. [Section 40]

 Employer should pay the contribution to ESI

Corporation of behalf of his employee.
 Employer may deduct employee contribution
from employee wage for payment of
contribution to ESI Corporation.
 Employer may recover the employee
contribution paid from the wage of the
employee which should not exceed the
amount equivalent to employer contribution.
16 May 2019 13
 Employer will become responsible for
the payment to the ESI contribution
after deduction of the employee ’ s
contribution from the wage
 Employer should bear the expenses
occurred in payment of contributions
to the Corporation.

16 May 2019 14
Contd..

 Goetze India v. ESIC 2008 LLJ 356

Payment of interest on delayed payment of
contribution is statutory and can’t be waived
Hydrabad Abestos v. Employees Insurance
Court AIR 1978 SC 356
All employees in factories include persons
employed in connection with the work of
factory

16 May 2019 15
METHOD OF PAYMENT OF
CONTRIBUTION. [Section 43]
The manner of payment of contribution
 The time of payment of contribution.
 Fixation of stamps for payment of
contribution.

16 May 2019 16
 Benefits distributed in the case of
the insured persons by the
corporation.
 Maintenance of books and cards
of contribution of insured person
by ESI Corporation.

16 May 2019 17
EMPLOYERS TO FURNISH RETURNS AND MAINTAIN REGISTERS
IN CERTAIN CASES. [Section 44]

 Every principal and immediate employer

should submit to the Corporation returns
in prescribed form

Every principal and immediate employer

shall maintain registers or records in
respect of his factory or establishment .

16 May 2019 18
SOCIAL SECURITY OFFICERS, THEIR FUNCTIONS
AND DUTIES. [SECTION 45] (2010 amendment)

 Enquiring into the correctness of any

of the particulars stated in any return
referred to in Section 44.
 Social Security Officers can demand
any principal or immediate employer
to furnish to him information

16 May 2019 19
 He can examine the employer, his agent or
servant or any person found in factory,
establishment, and office.
 He can make copies of, or take extracts from,
any register, account book or other document
maintained in such factory, establishment, office
or other premises.
 He can do re-inspection whether the records and
returns submitted under Section 44 are correct
or not.
16 May 2019 20
[Section 45A] (2010
amendment)
 determine the amount of contributions
payable in respect of the employees of that
factory or establishment.
 No order shall be passed by the Corporation
in respect of the period beyond 5 years from
the date on which the contribution shall
become payable.

16 May 2019 21
Cases

 BHEL v. ESIC 2008 LLJ 302 SC

Failure to give contribution, company pleaded
to attach immediate employers as parties
which was not considered, order held illegal
Royal talkies v. ESIC AIR 1978 SC 1478
When liability to pay is disputed by the
employer, an opportunity to present his case
should be given before fixing his liability

16 May 2019 22
45 AA Appellate Authority

 If Employer is not satisfied by

order u/s 45A within 60 days,
an appeal can be done after
depositing 25% of the ordered
amount and is refundable on
success of appeal.
16 May 2019 23
GENERAL PROVISIONS AS TO PAYMENT OF
CONTRIBUTIONS. [Section 42]

 No employee's contribution
shall be payable whose
average daily wages during a
wage period are below the
prescribed wages

16 May 2019 24
Six Social Security Benefits (46)

—  Medical Benefit : Full medical care is provided
to an Insured person and his family members
—  no ceiling on expenditure on the treatment of
an Insured Person or his family member.
—  Medical care is also provided to retired and
permanently disabled insured persons and their
spouses on payment of a token annual premium
of Rs.120/-


Contd..
—  (b) Sickness Benefit(SB) : Cash compensation @ 70 % of
wages is payable to insured workers
—  for a maximum of 91 days in a year.
—  contribute for 78 days in a contribution period of 6 months.
—  Extended Sickness Benefit(ESB) : SB extendable upto two
years in the case of 34 malignant and long-term diseases at
an enhanced rate of 80 per cent of wages.
—  Enhanced Sickness Benefit : Enhanced Sickness Benefit
equal to full wage is payable to insured persons
undergoing sterilization for 7 days/14 days for male and
female workers respectively.
 Maternity Benefit (MB)
Maternity Benefit for pregnancy,
miscarriage etc is payable for
three months,@ full wages
contribution for 70 days in the
preceding year. (47)
Contd..
—  Temporary disablement benefit (TDB) :
From day one of entering insurable
employment
—  I r r e s p e c t i v e o f h a v i n g p a i d a n y
contribution in case of employment
injury.
— Temporary Disablement Benefit at the
rate of 90% of wage is payable so long as
disability continues.
Contd…
Permanent disablement benefit (PDB) : @ 90% of
wage in the form of monthly payment depending
upon the extent of loss of earning capacity as certified
by a Medical Board

Dependants' Benefit(DB) :@ 90% of wage in the form
of monthly payment to the dependants of a deceased
Insured person
ACCIDENTS AND CLAIMS (51A-51E)
—  Presumed to be arising out of and in the course of
employment
—  It can be rebutted when employee is proved to have
acted in contravention of instructions of employer
—  Travelling facilitated by employer invites notional
extension
—  Rescuing other employee overrides the principle of
added peril.
OCCUPATIONAL DISEASES (52A)
—  Third schedule of the Act, employments and peculiar
diseases
—  Contracting with these diseases is termed as employment
injury
Schedule 3

A B C
NO period of Service for not Period of
employment less than 6 employment as
necessary months specified by ESIC
Who will decide disability??
—  Sec 54: question of disability of IP shall be
determined by medical board through a reference
by ESIC, no appeal if commuted benefits are
cleared by both parties
Medical board: (by ESIC as well recom. By MO
And after 28 days of disability)

Medical appeal
tribunal

Employee’s
Insurance Court
Review of decisions of medical
appeal tribunal
— If decision is based on non disclosure by
employee
— Misrepresentation of material fact
— Injury aggravated beyond foreseeability
— Injustice
Medical benefits
— To IP, or family(if benefit is extended)
— For outpatient treatment, hospital,
clinic, house visits, inpatient treatment
— When : entitled for sickness benefit,
contribution is payable, disablement
benefit do not debar him from
medical benefits
Medical benefit shall conSnue
even if
—  He ceases to be an IP in insurable
employment (rules)
—  If he is Permanently disabled before
retirement age and would have been
received otherwise
— If he opts to retire , then his spouse may
have
Responsibility of medical care
— State govt. to give medical, surgical and
obstetric facilities by tie ups and on the
scale as determined
— ESIC and state govt. may share excess of the
average in case of sickness benefit
otherwise arbitration
— State govt. shall also maintain hospitals and
staff, paramedical staff, nursing colleges,
medical colleges for the purpose
RegulaSon of benefits
— No benefit for temporary disability on a
holiday
— Periodical payments may be commuted to
lump sum
— IP shall not leave the medical treatment
area, will not do any work , shall stay under
observation, shall allow examination; if he
is receiving sickness or disablement benefit
RegulaSon contd..
—  No two benefits can be combined
—  Benefits are not attachable and assignable
—  Cash benefits can’t be attached to satisfy a decree of
the court.
—  Benefit can be reviewed u/sec 55A by ESIC if material
facts were concealed, misrepresentation was there
and any discrepancy as to age, birth, remarriage etc
RIGHTS OF ESIC (68)
— Can order the payment of full benefit to the
employee, had the contribution been paid
duly.
— If excessive sickness claims are produced
before ESIC then extra amount may be
recovered from: owner/occupier if excessive
sickness is attributable to insanitary
working conditions etc.
Rights of ESIC contd..
—  70: right to get reimbursement if excess has been
paid
—  If the IP dies in the period wherein he is entitled
to have cash, his representatives can have till the
date of his death
—  Employer can not reduce the wages
—  Can not dismiss or punish any employee who is
receiving medical benefit of any nature
—  An employee can not have benefits under two
legislations i.e ESIC, 1948 and WCA 1923

thank you
 FACTORIES ACT, 1948

Image :duckduckgo
Objective
 To ensure adequate safety
measures and to promote the
health and welfare of the
workers employed in factories.
The Act has been amended in the
years 1949, 1950, 1951, 1954,
1970 and 1976,1987.

5/16/2019 2
Main Features
 Factory2(m)
 Adult2(a) (18+)
 Adolescent 2(b)(15-18)
 Child2(c)(below 15)
 Manufacturing Process (k)
 Responsibility of manager/occupier(7A,B)
 young person means a person who is
either a child or an adolescent(d)

5/16/2019 3
Contd..
 (cb) "hazardous process"
 process or activity
 in relation to an industry specified in the
First Schedule
 raw materials ,intermediate , finished
products, bye products, wastes or effluents
 cause material impairment to the health of
the persons
 result in the pollution of the general
environment

5/16/2019 4
List of Industries involving
Hazardous Processes(schedule
1)Cement Industries:

 Petroleum industries:
 Petro – chemical Industries.
 Insectides, Fungicides, Herbicides & other Pesticides Industries.
 Synthetic Resin & Plastics
 Man made Fibre (Cellulosic & non cellulosic) Industry.
 Manufacture & repair of electric accumulators.
 Glass & Ceramics
 Grinding or glazing of metals.
 Manufacture, handling & processing of asbestos & its products.
 Extraction of oils & fats from vegetable & animal sources.
 Drugs & Pharmaceutical Industries………………..

5/16/2019 5
WELFARE PROVISIONS (s.42-50)
 Washing Facilities
 Storing and drying clothes
 Sitting Facilities
 First Aid Appliances
 Canteens
 Shelters, Rest Rooms and lunch places
 Crèches(min 30 women workers)
 Welfare Officers

5/16/2019 6
Judicial Interpretations
1. P.C Raha v. L.I Corporation of India(1995)II
LLJ 339 SC
Canteen Workers in four offices of the
corporation were deemed to have become the
regular employees of the corporation.
2. Steel Authority of India v. National Union
Water front workers 2001 SCC 227
Constitutional Bench: wherein discharge of a
statutory obligation, the principal employer takes
the services of a contractor, the contract labour
shall be deemed o be the employees of Principal
Employer.
5/16/2019 7
Working hours of adults(c-vi)
 48 hours/week
 First day of week holiday: no substitution:
prior notice: one holiday in preceding 3
days
 9 hours/day rest interval after 5 hours
 If shift worker then holiday means 24
hours off
 Extra wages for over time if daily work
exceeds 9 hours
5/16/2019 8
Contd..
 Daily notice of work
 Maintenance of register
 Extra wages for over time if daily work
exceeds 9 hours
 Compensatory holidays
 Prohibition of double employment

5/16/2019 9
Annual leave with wages
Every worker who has worked for a period
of 240 days or more in a factory
(i) if an adult, one day for every twenty days of
work performed by him during the
previous calendar year;
(ii) if a child, one day for every fifteen days of
work formed by him during the previous
calendar year. In the case of a female
worker, maternity leave for any number of
days not exceeding twelve weeks.

5/16/2019 10
66. Further restriction on
employment of women
No woman shall be
required or allowed to
work in any factory
except between the
hours 6 A.M. and 7 P.M.
5/16/2019 11
Section 67.
 Prohibition of employment of young
children
No child who has not completed his
fourteenth year shall be required or allowed
to work in any factory
unless he carries a token of medical fitness
with him

5/16/2019 12
 Certificate of fitness to be given by
doctor
 Valid for 12 months
 Must carry a reference of work to be
done and fitness pertaining to that

5/16/2019 13
Section 71. Working hours for
children

(a) not for more than four and a half

hours in any day;
(b) during the night.
“night” shall mean a period of at least
twelve consecutive hours which shall
include the interval between 10 P.M.
and 6 A.M.

5/16/2019 14
IVA. Provisions relating to Hazardous
Processes
1987(41A-41H)
 Bhopal gas tragedy
 Site Appraisal committee
 Compulsory disclosure of information
 Specific responsibility of occupier
 Permissible limits of exposure of chemical
and toxic substances
 Second schedule has been inserted

5/16/2019 15
 grant of permission for the initial location
of a factory involving a hazardous process
or for the expansion of any such factory,
appoint a Site Appraisal Committee:90
days

5/16/2019 16
Disclosure
 health hazards and the measures to
overcome exposure
 handling of the materials or substances
 in the manufacture, transportation, storage
and other processes,
 to the workers employed in the factory, the
Chief Inspector, the local authority and
general public in the vicinity.

5/16/2019 17
Contd..
 Specific responsibility to:
◦ Maintain health records
◦ Equipment safety
◦ Handling ,usage participation of workers and
safety management
◦ Training
 Enquiry by central govt.
 Steps in case of imminent danger

5/16/2019 18
Industrial Employment
(Standing Orders)Act,1946
Prologue

to define conditions of employment

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.
Extent and Applicability

whole of India
every industrial establishment
(hundred or more workmen in
preceding twelve months)
Inclusion with minimum two months’
notice
Contd..

 to have uniform Standing Orders over the matters in Schedule

to the Act,
 it was not intended that there should be different conditions
of service for those who are employed before and after.
 Once in force, they bind all those presently in the
employment of the concerned establishment and also those
who are appointed thereafter.
 Agra Electric Supply Co. Ltd. v. Aladdin, (1969) 2 SCC 598
 U.P. Electric Supply Co. Ltd. v. Their Workman, (1972)SC
Orders for what???

 Classification of workmen, e.g., whether permanent, temporary,

apprentices, probationers, or badlis.
 Manner of intimating to workmen periods and hours of work,
holidays, pay-days and wage rates.
 Shift working.
 Attendance and late coming.
 Conditions of, procedure in applying for, and the authority which
may grant leave and holidays.
 Requirement to enter premises by certain gates, an liability to
search.
Contd..

 Closing and reporting of sections of the industrial

establishment, temporary stoppages of work and the rights
and liabilities of he employer and workmen arising there from.
 Termination of employment, and the notice thereof to be
given by employer and workmen.
 Suspension or dismissal for misconduct, and acts or omissions
which constitute misconduct.
 Means of redress for workmen against unfair treatment or
wrongful actions by the employer or his agents or servants.
Draft to be submitted within 6 months
(3)

 to the Certifying Officer five copies + a

statement giving prescribed particulars of the
workmen employed + name of the trade
union
A group of employers in similar industrial
establishments may submit a joint draft of
standing orders
Inviting objections before certifying

Certifying Officer shall forward a copy

thereof to the trade union
submitted to him within fifteen days from
the receipt of the notice.
Certifying Officer shall decide about
modification
Final certification
Date of operation of standing orders
(7)
If no appeal then on the expiry of thirty
days from the date on which
authenticated copies thereof are sent
 otherwise, after seven days from the
date on which copies of the order of the
appellate authority are sent
Contradicting oral evidence not
admissible (12)

Any oral evidence for:

 adding
varying
 contradicting standing orders finally
certified
shall NOT be admitted in any Court.
INTERPRETATION

application or interpretation
employer or workman or a trade union
may refer the question
to Labour Courts
 decision shall be final and binding on the
parties
EXCLUSION

 Fundamental and Supplementary Rules, Civil

Services (Classification, Control and Appeal)Rules,
Civil Services (Temporary Service) Rules, Revised
Leave Rules, Civil Service Regulations, Civilians in
Defense Service (Classification, Control and
Appeal) Rules or the Indian Railway Establishment
Code or any other rules or regulations than may be
notified in this behalf by the appropriate
Government in the Official Gazette, apply.
“
THANKS
”
Dr Shiva
9815093970
To provide workmen and/or
their dependents relief in case of
accidents arising out of and in
the course of employment and
causing either death or
disablement of workmen.
Eligibility

 Certain Railway Servants;

 Persons listed in schedule II to the Act,
 Persons employed in occupations listed in Schedule III
to the Act.
 Seaman, person employed outside India
 In case of railways not employed in the administrative
capacity appt permanently
Applicability
 SCHEDULE II
2(1)(dd) LIST OF PERSONS WHO, SUBJECT TO THE
PROVISIONS OF SECTION 2(1)(DD), ARE
INCLUDED IN THE DEFINITION OF EMPLOYEES
 List of 48 employments
(d)dependant
(i) a widow/widower/widowed mother /any parent
a minor legitimate/illegitimate children or adopted son, an
unmarried legitimate or adopted daughter or a; and
Infirm dependent major children
(d) a minor brother or an 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 *[employee] is alive
Injuries Compensated under the
Act

 Death,
 Permanent Total Disablement,
 Permanent partial disablement &
 Temporary disablement whether total or partial
 Contracted an occupational diseases.
Conditions for Receiving
Compensation

if the accident arose out of and

in the course of his
employment. That means the
accident must occur while the
employee is in employment and
it must also be connected with
his employment.
Exemption from payment of
compensation
 If the injury does not result in total or partial disablement
of the employee for a period exceeding three days;
 If the injury does not result in death of the employee and is
caused by an accident which is directly attributable to:-
 influence of drink or drugs
 The disobedience of the employee to an
order expressly given, or to a rule
expressly framed, for the purpose of
securing the safety of workman
• The willful removal or disregard
by the employee of any safety
guard or other device which he
knew to have been provided for
the purpose of securing the
safety of employee.
Amount of Compensation

 Death = 50% of the monthly wages of the deceased

employee X 228.54 to 99.37 (depending upon the age
of the deceased employee)
 or an amount of 1,20,000, whichever is more.
However, if the monthly wages of the deceased
employee exceed 8000/-, his monthly wages for the
purpose of calculating the compensation shall be
deemed to be 8,000/- only (w.e.f. 31st May 2010)
permanent total disablement
 60% of the monthly wages X 228.54 to 99.37
(depending upon the age of the injured person)
or an amount of 1,40,000/- whichever is more.
 However, if the monthly wages of the injured
employee exceed 8000, his monthly wages for the
purpose of calculating the compensation shall be
deemed to be 8,000/- only.
temporary Disablement
 temporary total disablement or temporary partial
disablement
 he is entitled to receive compensation in the form of a
half-monthly payment. The amount of a half-monthly
payment is determined with reference to the monthly
wages the employee was drawing at the time of the
injury and is equal to 25% of the monthly wages of the
employee
 The maximum period during which the employee can
receive compensation for temporary total disablement
or temporary partial disablement is five years
In case of Fatal Accidents

 not to be made directly to the dependents of the

employee.
 In such case the employers is required to deposit the
amount of compensation with the Commissioner for
Employee’s Compensation. The Commissioner will
then apportion the amount among the dependents of
the employee.
 Note:- It is held that the payment of compensation
directly to a dependent is not legal even if he is the
only One dependent of the deceased employee
claiming compensation.
Procedure for claim of
compensation
 An application to the Commissioner for
Employee’s Compensation
 Before filing the application the Employee has
to give notice of the accident to the employer
containing the details of the accident.
 Before filing the application the Employee has
also to submit himself for medical examination
if he is required to do so by the employer
 If any applicant is poor, the Commissioner may
exempt him from paying the application fees.
 The Commissioner can take the assistance of
any person possessing special knowledge of any
matter relating to the case for deciding the
application.
 The Commissioner can recover the amount
payable by any person under the Act as an
arrear of land revenue.
The application has to be made
within 2 years of the occurrence
of the accident or within 2 years
from the date of death.
6. Review: Compensation
 Incase the employee receiving half monthly payment
as compensation.
 Certificate by medical practitioner: change in the
medical condition of the employee
 Any half-monthly payment may be continued,
increased, decreased or ended
 if the accident is found to have resulted in permanent
disablement, be converted to the lump sum to which
the workman is entitled -any amount which he has
already received by way of half-monthly payments
Insolvency of the Employer :14
 Employer : Insolvent
 Company : Winding up Proceedings
 Insurer : creditors
 Same liability as of employer but not more than him in
any case
 All the rights shall be transferred to employee
Contd..
 If the liability of the insurers s less than the liability of
the employer then employee may prove for the balance
in the insolvency proceedings or liquidation.
 the contract of the employer with the insurers is void
or voidable by non-compliance on the part of the
employer , complied as if not void or voidable, and the
insurers is entitled to prove in the insolvency
proceedings or liquidation for the amount paid to the
employee.
 Employee’s failure to give the notice to
the insurers of the happening of the
accident resulting disablement as soon
as practicable after he becomes aware
of the institution of the insolvency or
liquidation proceedings may defeat his
claim.
30. Appeals to HC
 (a) compensation as 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;
 (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;
 an order allowing or disallowing any
claim for the amount of an indemnity
 an order refusing to register a
memorandum of agreement
 The period of limitation for an appeal
under this section shall be sixty days.
Appeals can be made against
orders related to compensation,
distribution of compensation,
award of penalty or interest, etc.
only if the amount in dispute is
at least 10,000 rupees
The Employees Compensation
(Amendment) Act, 2017
 The employer needs to inform an employee
of his rights to compensation under the Act
in writing as well as through electronic
means. Failure to do so will make the
employer liable to penalty. 1,00000
 The minimum amount for appeal in HC Rs.
From 300 to Rs. 10,000, or more