STUDY MATERIAL ON LABOUR LAW

COMPILED BY MR. RAVINARAYANA K.S LLB, MBA LECTURER SRINIVAS INSTITUTE OF MANAGEMENT STUDIES PANDESHWAR MANGALORE

The Trade Unions Act, 1926

Preamble [25th March, 1926] An act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions. Preliminary 1. Short title, extent and commencement - (1) This Act may be called the [The words "India" has been deleted by the Trade Union (Amendment) Act 31 of 1964] Trade Unions Act,1926. 2. It extends to the Whole of India [Note:- The word "except" the State of Jammu and Kashmir" have been omitted by Act No.51 The Orient Tavern 1970]. 3. It shall come into force on such date as the Central Government by notification in the Official Gazette, appoint. Notes In the year 1925 the Government of India, after consulting the State Governments drew up a Bill providing for the registration of trade unions and introduced the same in the Legislative Assembly on the 1st August,1925. The Indian Trade Union Act was passed in 1926and came into force on the 1st June,1927. Although two amending Acts were passed in 1928 and 1942, no major changes were introduced in the Act till 1947. In 1947, an amending Acct was passed which provided for compulsory recognition of the representative Unions by the employers, and listed certain practices on the part of recognized Unions. These provisions of the amended Act, however, have not been brought into force. Registration of Trade Unions 2. Definitions - In this act the appropriate Government means in relation to Trade Unions whose objects are not confined to one State, the Central Government, and in relation to other Trade Unions State Government, and unless there is anything repugnant in the subject or context, (a) "Executive" means the body, by whatever name called to which the management of the affairs of a Trade Union is entrusted;

(b) [Subs. By Trade Unions (Amendment) Act 38 of 1964] In the case of a Trade Union, includes any member of the executive thereof, but does not include an auditor; (c) "Prescribed" means prescribed by regulations made under this Act (d) "Registered office" means that office of a Trade Union which is registered under this Act as the Head office thereof. e) "Registered Trade Union" means a Trade Union registered under this Act; (f) [Note: Subs. by Act 42 of 1960] "Registrar" means (i) A Registrar of Trade Unions appointed by the appropriate Government under section 3, and includes an additional or Deputy Registrar of Trade Unions; and (ii) In relation to any Trade Union, the Registrar appointed for the State in which the head or registered office, as the case may be, of the Trade Union is situated; (a) "Trade dispute" means any dispute between employers and workmen or between workmen and workmen, or between employers and employers which is connected with the employment, or non-employment, or the terms of employment or the conditions of labour, of any person, and "workmen" means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises; and (b) "Trade Union" means combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more Trade Unions; Provided that this Act shall not affect (i) Any agreement between partner to their own business; (ii) Any agreement between an employer and those employed by him as to such employment; or (iii) Any agreement in consideration of the sales of the goodwill of a business or of instruction in any profession, trade or handicraft. 3. Appointment of Registrars - (1) [The appropriate Government] shall appoint a person to be the Registrar of Trade Unions for [each] (State)]. (2) [Note: The principal section re-numbered as sub-section (1) and sub-section (2) inserted by Act 48 of 1960] The appropriate Government may appoint as many Additional and Deputy Registrars of Trade Unions as it thinks fit for the purpose of exercising and discharging, under the superintendence and direction of the Registrar, such powers and functions of the Registrar under this Act as it may, be order, specify and define the local limits within which any such Additional or Deputy Registrar shall exercise and discharge the powers and function so specified.

(3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy Registrar exercises and discharges the powers and function of a Registrar in an area within which the registered office of a Trade Union is situated, the Additional or Deputy Registrar shall be deemed to be Registrar in relation to the Trade Union for the purposes of this Act. 4. Mode of registration - (1) 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. (2) [The principal section re-numbered as sub-section (1) and sub-section (2) inserted by Act 48 of 1960] Where an application has been made under sub-section (1) of the registration of a Trade Union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application, but before the registration of the Trade Union some of the applications, but not exceeding half of the total number of the persons who made the application, have ceased to be members of the Trade Union or have notice in writing to the Registrar dissociating themselves from the application]. 5. Application for registration - (1) Even application for registration of a Trade Union shall be made to the Registrar, and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely:(a) The names, occupations and addresses of the members making the application; (b) The name of the Trade Union and the address of its head office, and (c) The title, names, ages, addresses and occupations of the [Subs. by Trade Unions (Amendment) Act No.33 of 1954] of the Trade Union. (2) Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed. 6. Provisions to be contained in the rules of Trade Union - A Trade Union shall not bee entitled to registration under this Act, unless the executive thereof is constituted in accordance with the provisions of this Act, and the rules thereof provided for following matters, namely:(a) The name of the Trade Union; (b) The whole of the object for which the Trade Union has been established; (c) The whole of the purposes for which the general funds of the Trade Union shall be applicable, all of which purposes shall be purpose, to which such funds are lawfully applicable under this Act;

(d) The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the [Subs. by Trade Unions (Amendment) Act No.33 of 1954] and members of the Trade Union; (e) The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as [Subs. by Trade Unions (Amendment) Act No.33 of 1954] required under Section 22 to form the executive of the Trade Union; (ae) [Ins. by Act 42 of 1960] The payment of a subscription by members of the Trade Union which shall be not less than twenty five naye paise per month per member; (a) The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on members; (b) The manner in which the member shall be amended, varied or rescinded; (c) The manner in which the members of the executive and the other [Subs. by Trade Unions (Amendment) Act No.33 of 1954] of the Trade Union shall be appointed and removed; (d) The safe custody of the funds of the Trade Union, and annual audit, in such manner as may be prescribed, of the account books by [Subs. by Trade Unions (Amendment) Act No.33 of 1954] and members of the Trade Union; and (e) The manner in which the Trade Union may be dissolved. 7. Power to call for further particulars and to require alteration of name - (1) The Registrar may call for further information for the purpose of satisfying himself that any application complies with the provisions of Sec; 5, or that the Trade Union is entitled to registration under Section 6, and may refuse to register the Trade Union until such information is supplied. (2) If the name under which a Trade Union is proposed to be registered is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearly resemble such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall require the persons applying for registration to alter the name of the Trade Union stated in the application, and shall refuse to register the Union until such alteration has been made. 8. Registration - The Registrar, on being satisfied that the Union has complied with all the requirements of this Act in regard to registration, shall register the Trade Union by entering in a 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. Notes

This section is mandatory. The Registrar cannot refuse to register a Trade Union if the application for registration complies with the technical requirement as laid down in this Act. This Registrar has only to see if it fulfils the technical requirements and not whether it could be described as unlawful. If the applicant for registration complies with technical requirements of this Act, he has no option but to register the Trade Union, no matter what happens to it subsequently even if it, in fact, proceeds counter to law or seeks to carry out its lawful objects in an unlawful way. (Inland Steam Navigation Workers Union In re.1635 Cal.57 : 63 Cal.565 : C. W. N. 91). An application for registration cannot be rejected on the ground that it is an attempt to revive an old, already unlawful, union under a new name (Ibid.). The functions of the Registrar are prescribed by this Act and his office is also created by this Act (Ibid.). 9. Certificate of Registration - The Registrar registering a Trade Union under Section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive that the Trade Union has been duly registered under this Act. 10. Cancellation of Registration - A certificate of registration of a Trade Union may be withdrawn o cancelled by the Registrar (a) On the application of the Trade Union to be verified in such manner as may be prescribed, or (b) If the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to exist or has willfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter, provision for which is required by Section 6: Provided that not less than two months previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union. 11. Appeal - (1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation of a certificate of registration may, within such period as may be prescribed, appeal (a) Where the head office of the Trade Union is situated within the limits of Presidencytown to the High Court, or (b) Where the head office is situated in any outer area, to such Court, not inferior to the Court of an additional or assistant Judge of a principal Civil Court of original jurisdiction, as the [appropriate Government] may appoint in this behalf for that area.

(2) The Appellate Court may dismiss the appeal, or pass an order directing the Registrar to register the Union and to issue a certificate of registration under the provisions of Section 9 or setting aside the order for withdrawal or cancellation of the certificate, as the case may be, and the registrar shall comply with such order. (3) For the purpose of an appeal under sub-section (1) an Appellate Court shall, so far as may be, follow the same procedure and have the same powers as it follows an has when trying a suit under the Code of Civil Procedure, 1908, and may direct by whom the whole or any part of the costs of the appeal shall be paid an such costs shall be recovered as if they had been awarded in a suit under the said Code. (4) In the event of the dismissal of an appeal by any Court appointed under clause (b) of sub-section (1), the person aggrieved shall have a right of appeal to the High Court and the High Court shall, for the purpose of such appeal, have all the powers of an Appellate Court under sub-sections (2) and (3) and the provisions of those sub-section shall apply accordingly.] 12. Registered office - All communications and notice to a registered Trade Union may be addressed to its registered office. Notice of any change in the address of the head office shall be given with fourteen days of such change to the Registrar in writing, and the changed address shall be recorded in the register referred to in Section 8. 13. Incorporation of registered Trade Unions - Every registered Trade Union shall be a body corporate by the name under which it is registered and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovable property an contract, and shall, by the said name sues and be sued. 14. Certain Acts not to apply to registered Trade Unions - The following Act, namely (a) The Societies Registration At, 1863. (b) The co-operative Societies Act, 1912. And (c) [(Note: See now the Companies Act, 1957 (1 of 1956), vide Act (42 of 1960) The Companies Act, 1956 (1 of 1956)] shall not apply to any registered Trade Union, had the registration of any such Trade Union under any such Act shall be void. Rights and liabilities of registered trade unions 15. Objects on which general funds may be spent - The general funds of a registered Trade Union shall not be spent on any other objects than the following, namely:(a) The payment of salaries, allowances and expenses to (Note: Subs. by Act No.38 of 1964 for the word) "officers" office bearers of the Trade Union;

(b) The payment of expenses for the administration of the Trade Union including audit of the accounts of the general funds of the Trade Union; (c) The prosecution of defense of any legal proceeding to which the Trade Union or any member thereof is a party, when such prosecution or defense is undertaken for thee purpose of securing or protecting any rights of the Trade Union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs; (d) The conduct of trade disputes on behalf of the Trade Union or any member thereof; (e) The compensation of members for loss arising out of trade disputes; (f) Allowance to members or their dependants on account of death, old age, sickness, accidents or unemployment of such members; (g) The issue of or the undertaking of liability under policies of assurance on the lives for members or under policies insuring members against sickness, accident or unemployment; (h) The provision of educational, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependants of members; (i) The upkeep of a periodical published mainly for the purposes of discussing questions affecting employers or workmen as such; (j) The payment, in furtherance of any of the objects on which the general funds of the Trade Union may be spent, of contributions to any cause intended to benefit workmen in general, provided that the expenditure in respect of such contributions in any financial year shall not, at any time, during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the Trade Union during that year and of the balance at the credit of those funds at the commencement of that year; and (k) Subject to any conditions contained in the notification, any other object notified by the [appropriate Government] in the official Gazette. 16. Constitution of a separate fund for political purposes - (1) A registered Trade Union may constitute a separate fund, from contributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic and political interest of its members, in furtherance of any of the objects specified in subsection (2). (2) The objects referred to in sub-section (1) are:(a) The payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under

[Note: Deleted by Act 42 of 1960] the Constitution or of any local authority, before, during or after the election in connection with his candidature or election; or (b) The holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate; or (c) The maintenance of any person who is a member of any legislative body constituted under [Note: Deleted by Act 42 of 1960] the Constitution or for any local authority; or (d) The registration of electors or the selection of a candidate for any legislative body constituted under [Inserted by Act No.51 of 1970] the Constitution or for any local authority; or (e) The holding of political meetings of any kind or the distribution of political literature or political documents of any kind. [(Note: Inserted by Act No.51 of 1970) (2-A) In its application to the State of Jammu and Kashmir references in sub-section (2) to any legislative body constituted under the Constitution shall be construed as including references to the Legislative of that State]. (3) No member shall be compelled to contribute to the fund constituted under subsection (2), and a member who does not contribute to the said fund shall not be excluded from any benefits of the Trade Union, or placed in any respect either directly or indirectly under any disability r at any disadvantage as compared with other members of the Trade Union (except in relation to the control of management of the said fund) by reason of his contributing to the said fund; and contribution to the said fund shall not be made a condition for admission to the Trade Union. 17. Criminal conspiracy in trade disputes - No officers or members of a registered Trade union shall be liable to punishment under sub-section (2) of Section 120-B of the Indian Penal Code, in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in Section 15 unless the agreement is an agreement to commit an offence. 18. Immunity from civil suit to certain cases - (1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any [Note: Inserted by Act No.51 of 1970] or member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital of his labour as he wills. (2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortuous act done in contemplation or furtherance of a trade dispute by and agent of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to, express instructions given by the executive of the Trade Union.

20. Right to inspect books of Trade Union - The account books of a registered Trade Union and the list of members thereof shall be open to inspection by an [Note: Substituted by Trade Unions (Amendment) Act No.38 of 1964] or member of the Trade Union at such times as may be provided for in the rules of Trade Union. 21. Rights of minors to membership of Trade Union - Any person who has attained the age of fifteen years may be a member of registered Trade Union subject to any rules of the Trade Union to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and execute all instruments an give all acquaintances necessary to be executed or given under the rules: [Note: Proviso omitted by ibid.] 21A. Disqualification of office bearers of Trade Union - (1) A person shall be disqualified for being chosen as, and for being a member of the executive or any other office-bearer or registered Trade Union if(i) He has not attained the age of eighteen years; (ii) He has been convicted by a Court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release. (2) Any member of the executive or other office-bearer of a registered Trade Union who, before the commencement of the Indian Trade Union (Amendment) Act, 1964, has been convicted of any offence involving moral turpitude and sentenced to imprisonment shall on the date of such commencement, cease to be such member or office-bearer unless a period of five years has elapsed since his release before the date]. (3) [(Note: Ins. by Act No.51 of 1970) In its application to the State of Jammu and Kashmir references in sub-section (2) to any legislative body constituted under the Constitution shall be construed as including references to the Legislature of that State]. 22. Proportion of office-bearers to be concerned with the industry - Not less than one half of the total number of the [Subs. by Trade Unions (Amendment) Act No.31 of 1964] of every registered Trade Union shall be persons actually engaged in an industry with which the Trade Union is convicted. Provided that the (appropriate Government) may, by special or general order declare that the provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the order. 23. Change of name - Any registered Trade Union may, with the consent of not less than two-thirds of the total number of its members and subject to the provisions of Section 25 change its name. 24. Amalgamation of Trade Union - Any two or more registered Trade Unions may become amalgamated together as one Trade Union with or without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the

votes of at least one-half of the members of each or every such Trade Union entitled to vote are recorded, and that at least sixty percent of the votes recorded are in favour of the proposal. 25. Notice of change of name or amalgamations - (1) Notice in writing of every change of name and every amalgamation, signed, in the case of change of name, by the Secretary an by seven members of the Trade Union changing its name and in the case of an amalgamation by the Secretary and by seven members of each and every Trade Union which is a party thereto, shall be sent to the Registrar, and where head office of the amalgamated Trade Union is situated in a different (State), to the Registrar of such (State). (2) If the proposed name is identical with that by which any other existing Trade Union has been registered or in the opinion of the Registrar so nearly resembles such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change of name. (3) Save as provided in sub-section (2), the Registrar shall if he is satisfied that he provisions of this Act in respect o change of name have been complied with, register the change of name in the register referred to in Section 8, and the change of name shall have effect from the date of such registration. (4) The Registrar of the (State) in which the head office of the amalgamated Trade Union is situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have been complied with and that the Trade Union formed thereby is entitled to registration under Section 6 register the Trade Union in the manner provided in Section 8, and the amalgamation shall have effect from the date of such registration. 26. Effects of change in name and of amalgamation - (1) The change in the name of a registered Trade Union shall not effect any rights or obligation of the Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name. (2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any such Trade Unions or any right of a creditor or any of them. 27. Dissolution - (1) When a registered Trade Union is dissolved, notice for the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar and shall be registered by him if he is satisfied the dissolution has been effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date of such regulation. (2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution and funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the member in such manner as may be prescribed.

28. Returns - (1) There shall be sent annually to the Registrar, on or before such date as may bee prescribed a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade Union during the year ending on 31 st day of [Note: Subs. by Trade Union (Amendment) Act, No. 38 of 1964] next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of [Note: Subs. by Trade Union (Amendment) Act, No. 38 of 1964] (December). The statement shall be prepared in such form and shall comprise such particulars as may be prescribed. (2) Trade Union during the year which the general statement refers, together also with copy of the rules of the Trade Union corrected upto the date of the dispatch thereof to the Registrar. (3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of making of the alteration. (4) [Note: Added by Act 42 of 1960] For the purpose of examining the documents referred to in subsections (1), (2) and (3), the Registrar, or any officer authorized by him, by general or special order may, at all reasonable times, inspect the certificate of registration account books, registers, and other documents relating to a Trade Union, at its registered office or may require their production at such place as he may specify in this behalf, but no such place shall be at a distance of more then ten miles from the registered office of a Trade Union. Regulations 29. Power to make regulations - (1) The [appropriate Government] may make regulations for the purpose of carrying into effect the provisions of this Act. (2) In particular and without prejudice to the generality of the generality of the foregoing power, such regulations may provided for all or any of the following matters, namely; (a) The manner in which Trade Union and the rules of Trade Unions shall be registered and the fees payable on registration; (b) The transfer of registration in the case of any registered Trade Union which has changed its head office from one State to another; (c) The manner in which, and the qualifications of persons by whom, accounts of registered Trade Unions or of any class of such Unions shall be audited; (d) The conditions subject to which inspection of documents kept by Registrars shall be allowed and the fees which shall be chargeable in respect of such inspections; and (e) Any matter which is to be or may be prescribed. 30. Publication of regulations - (1) The Power to make regulations conferred by section 29 is subject to the condition of the regulations being made after previous publications.

(2) The date to be specified in accordance with clause (3) of section 23 of the General Clauses Act, 1927, as that after which a draft of regulations proposed to be made will be taken into consideration shall not be less than three months from the date on which the draft of the proposed regulations was published for general information. (3) Regulations so made shall be published in the (Official Gazette) and on such publication shall have effect as if enacted in this Act.

Penalties and procedure 31. Failure to submit returns - (1) If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as required by or under any provision of this Act, every (office-bearer) or other person bound by the rules of the Trade Union to give or send the same or if there is no such [Subs. by Trade Unions (Amendment) Act No.38 of 1961] or person, every member of the executive of the Trade Union, shall be punishable with fine which may extend to five rupees and in the case of a continuing default, with an additional fine which may extend to five rupees for each week after the first during which the default continues: Provided that the aggregate fine shall not exceed fifty rupees. (2) Any person who willfully makes, or causes to be made, any false entry in, or any omission from the general statement required by section 28, or in or form any copy of rules or of alterations of rules sent to the Registrar under that Section, shall be punishable with fine which may extend to five hundred rupees. 32. Supplying false information regarding Trade Union - Any person who, wit intent to deceive, gives to any member of a registered Trade Union or to any document purporting or applying to become a member of such Trade Union, any document purporting to be a copy of the rules of the Trade Union or of any alterations to the same which he knows, or has reason to believe, is not a correct copy of such rules or alterations as are for the time being in force, or any person who, with the like intent 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 two hundred rupees. 33. Cognizance of offence - (1) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act. (2) No court shall take cognizance of any offence under this Act unless complaint thereof has been made by or with the previous sanction 32, 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.

PAYMENT OF WAGES ACT, 1936

[Act No. 4 of Year 1936] An Act to regulate the payment of wages of certain classes of 1[employed persons] Whereas it is expedient to regulate the payment of wages to certain classes of 1 [employed persons]; It is hereby enacted as follows: 1. Short title, extent, commencement and application (1) This Act may be called the Payment of Wages Act, 1936. 2 [(2) It extends to the whole of India 3[* * *]]. (3) It shall come into force on such 4[date] 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 5 [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, 6[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 7[this Act] or any of them to the payment of wages to any class of persons employed in 8[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]: 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 governments. (6) Nothing in this Act shall apply to wages payable in respect of a wage-period which, over such wage-period, average one thousand six hundred rupees a month or more. 2. Definitions In this Act, unless there is anything repugnant in the subject or context,11 [(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) "industrial or other establishment" means any(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; [(c) inland vessel, mechanically propelled; (d) mine, quarry or oil-field; (e) plantation; (f) workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale; (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 to the supply of water or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on. (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. (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); 11 [(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 13 [(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; (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 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 16 [clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948)]; 17 [(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 18[shall also be responsible] for such payment. 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. 5. Time of payment of wages (1) The wages of every person employed upon or in(a) any railway, factory or 12[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 12[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: 15 [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: 15 [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 ) 15[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 wages of any such persons or class of such persons: 15 [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) 19[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 All wages shall be paid in current coin or currency notes or in both: 20 [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.] 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. 21 [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. 14 [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; 13 [(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;] (e) deductions for such amenities and services supplied by the employer as the 22[***] State Government 15[or any officer specified by it in this behalf] may, by general or special order, authorise. Explanation: The word "services" in 23[this clause] does not include the supply of tools and raw materials required for the purposes of employment;

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[(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 24[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; 25[***] 26 [(j) deductions for payments to co-operative societies approved by the State Government 15[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian Post Office, 27[and] 13 [(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 Act 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.]] 6 [(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 Union Act, 1926 (16 of 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 Union Act, 1926 (16 of 1926);] 15 [(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;] 20 [(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;] 28 [(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]

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[(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 cooperative societies under clause (j) of sub-section (2), seventy-five per cent of such wages, and (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 (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 subsection (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 persons 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 29[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 12[industrial or other establishment] are part only of a staff employed 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

(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 in 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 by any such terms be due to the employer in lieu of due notice. 30 [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
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[(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 deduction.] (2) All such deduction 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 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 houseaccommodation amenity or service supplied and, in the case of deduction under the said clause (e), shall be subject to such conditions as 22[***] the State Government may impose. 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;

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[(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.
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[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 insurance schemes Deductions under clause (j) 27[and clause (k)] of sub-section (2) of section 7 shall be subject to such conditions as the State Government may impose.
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[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 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 (1) An Inspector of Factories appointed under 31[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 12[industrial or other establishments] in respect of which they shall exercise their functions. 11 [(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 12[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 12[industrial or other establishment]; (d) require by a written order the production at such place, as may be prescribed, of any register 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: 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 32[Code of Criminal Procedure, 1973 (2 of l974)]shall, so far as may be, apply to any search or seizure under this sub-section as they apply to any search or seizure made under the authority of a warrant issued under 33[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, 1860 (45 of 1860).
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[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 of wages and penalty for malicious or vexatious claims (1) The State Government may, by notification in the Official Gazette, appoint 15[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, 34[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): PROVIDED that every such application shall be presented within 35[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 35 [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 36[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. 11 [(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 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 (1) Employed persons are said to belong to the same unpaid group if they are borne on the same establishment and if 15[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 l5 on behalf or in respect of any number of employed persons belonging to the same unpaid group, and in such case 11 [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 sub-section (2) of this section, and the provisions of that sub-section shall apply accordingly. 17. Appeal 1) 37[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 38 [the order or direction] was made, in a Presidency-town 39[***] 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 15[or such direction has the effect of imposing on the employer or the other person a financial liability exceeding one thousand rupees], or 11 [(b) by an employed person 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 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 sub-section (4) of section 15. 15 [(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.] 13 [(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 subsection (3) or sub-section (4) of that section shall be final.] 65 [(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.]
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[17A. Conditional attachment of property of employer or other person 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 11[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 subsection (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 the 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 judgement 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 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 40[Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).] 19. Power to recover from employer in certain cases [Repealed by the Payment of Wages (Amendment) Act, 1964 (53 of 1964), w.e.f. 1st. February, 1965] 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, 41[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 section 11 to 13], both inclusive, shall be punishable with fine 42[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, 43[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 44[five hundred rupees.] 15 [(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 45[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 12[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 (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 45[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 46[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 47[one hundred rupees] for each day for which such failure or neglect continues.]

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 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. 15 [(3A) No Court shall take cognizance 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 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.
15

[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 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.

48

[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 49 [railways], 15[air transport services,] mines and oilfields, be powers of the Central Government.] 25. Display by notice of abstracts of the Act The person responsible for the payment of wages to persons ; 50[employed in a factory or an industrial or other establishment] shall cause to be 51[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 52[in the factory, or industrial or other establishment], as may be prescribed.
53

[25A. Payment of undisbursed wages in case 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 (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, 89[***] 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 54[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; (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; 15 [(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 scale of costs which may allowed in proceedings under this Act; (k) prescribe the amount of court-fees payable in respect of any proceedings under this Act, 55[***] (l) prescribe the abstracts to be contained in the notices required by section 25; 56[***] 6 [(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;] 6 [(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. 6 [(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 57[two or more successive sessions,] and if, before the expiry of the session 58[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.]

MINIMUM WAGES ACT, 1948

[Act No. 11 of Year 1948, dated 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: 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 In this Act, unless there is anything repugnant in the subject or context,(a) "Adolescent" means a person who has completed his fourteenth years of age but has not completed his eighteenth year; (aa) "Adult" means a person who has completed his eighteenth years of age;] (b) "Appropriate government" means(i) in relation to any scheduled employment carried on by or under the authority of the [Central Government or a railway administration], or in relation to a mine, oilfield or major port, or any corporation established by 4[a Central Act], the Central Government, and (ii) in relation to any other scheduled employment, the State Government; (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; (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 6 [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; (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 7[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,8[Union]. 3. Fixing of minimum rates of wages (1) The appropriate government shall, in the manner hereinafter provided,(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:

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, 11[***] 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 12[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"); (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"). 13 [(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; [(b) minimum rates of wages may be fixed by any one or more of the following wage periods, namely: (i) by the hour, (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. 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 concessional rates, where so authorised; 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 concessional rate 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. 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 (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 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.] 6. Advisory committees and sub-committees [Repealed by the Minimum Wages (Amendment) Act, 1957 (30 of 1957)]

7. Advisory Board For the purpose of co-ordinating work of 15[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. 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. 9. Composition of committees, etc. Each of the committees, sub-committees 16[***] 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. 10.Correction of errors (1) The appropriate government may, at any time, by notification in the Official Gazette, correct clerical or arithmetical 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,] 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, authorise the payment of minimum wages either wholly or partly in kind. (3) If appropriate government is of the opinion that provision should be made for the supply of essential commodities at concessional rates, the appropriate government may, by notification in the Official Gazette, authorise the provision of such supplies at concessional rates. (4) The cash value of wages in kind and of concessions in respect of supplies of essential commodities at concessional rates authorised under sub-sections (2) and (3) shall be estimated in the prescribed manner.

12. Payment of minimum rates of wages (1) Where in respect of any scheduled employment a notification under section 5 17[***] 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 authorised 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). 13. Fixing hours for a normal working day, etc.
18

[(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; (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.] 19 [(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.] 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.

(2) Nothing in this Act shall prejudice the operation of the provisions of 20[section 59 of the Factories Act, 1948 (63 of 1948)] in any case where those provisions are applicable. 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. 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. 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. 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. (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 prescribed in the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent. 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; 14 [(d) seize or take copies of such register, record or 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. (3) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860). 7 [(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).] 20. Claim (1) The appropriate government may, by notification in the Official Gazette, appoint 21 [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 7[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) 14[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 authorised 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 7[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.

14

[(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, 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). 21. Single application in respect of a number of employees (1) 22[Subject to such rules as may be prescribed, a single application] may be presented under section 20 on behalf or in respect 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 7[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. 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 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 (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 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 section 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 (1) If the person committing any 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 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 any 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

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 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 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 (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.] 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 crossexamination by or on behalf of the person whom the employer charges as the actual offender and by the prosecution. 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. 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. 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, if for special reasons it think so fit, by notification in the Official Gazette, direct that 7[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. 23 [(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, 7[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 7[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 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. 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. 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. 29. Power of Central Government to make rules The Central Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules 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. 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,16[***] and the Advisory Board; (b) prescribe the method of summoning witnesses, production of documents relevant to the subject-matter of the enquiry before the committees, sub-committees, 16[***] 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 circumstance 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 book 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; and (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. 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.] 31. Validation of fixation of certain minimum rates of wages Where during the period(a) commencing on the lst 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 the rule issued under section 13.] THE SCHEDULE [See section 2(g) and 27] PART I (1) Employment in any woollen carpet making or shawl weaving establishment. (2) Employment in any rice mill, flour mill or dal mill. (3) Employment in any tobacco (including bidi making) manufactory. (4) Employment in any plantation, that is to say, any estate which is maintained for the purpose of growing cinchona, rubber, tea or coffee. (5) Employment in any oil mill. (6) Employment under any local authority. 24 [(7) Employment on the construction or maintenance of roads or in building operations.] (8) Employment in stone breaking or stone crushing. (9) Employment in any lac manufactory. (10) Employment in any mica works. (11) Employment in public motor transport. 12) Employment in tanneries and leather manufactory. 25 [Employment in gypsum mines.

Employment in barytes mines. Employment in bauxite mines.] 26 [Employment in manganese mines.] 27 [Employment in the maintenance of buildings and employment in the construction and maintenance of [runways] 28 [Employment in china clay mines. [Employment in kyanite mines.] 29 [Employment in copper mines.] 30 [Employment in clay mines.] 31 [Employment in magnesite mines covered under the Mines Act, 1952] 32 [Employment in white clay mines.] 33 [Employment in stone mines.] 34 [Employment in steatite (including mines producing soapstone & tale)] 35 [Employment in ochre mines.] 36 [Employment in asbestos mines.] 37 [Employment in fire clay mines.] 38 [Employment in chromite mines.] 39 [Employment in quartizite mines. Employment in quartz mines. [Employment in silica mines.] 40 [Employment in graphite mines. 41 [Employment in felspar mines.] 42 [Employment in laterite mines.] 43 [Employment in dolomite mines. [Employment in red oxide mines.] 44 [Employment in wolfram mines.] 45 [Employment in iron-ore mines.] 46 [Employment in granite mines.] 47 [Employment in rock phosphate mines.] 48 [Employment in haemetite mines.] 49 [Employment in loading and unloading in railways, goods sheds. [Employment in docks and ports.] 50 [Employment in ashpit cleaning on railways.] 51 [Employment in marble and calcite mines.] 52 [Employment in uranium mines.] 53 [Employment in mica mines.] 54 [Employment in lignite mines; Employment in gravel mines. Employment in state mines. Employment in laying of underground cables, electric lines, water supply lines and sewerage pipe line.] PART II (1) Employment in agriculture, that is to say, in any form of farming, including the cultivation and tillage of the soil, dairy farming, the production, cultivation, growing and harvesting of any agricultural or horticultural commodity, the raising of live-stock, bees or poultry, and any practice performed by a farmer or on a farm as incidental to or in conjunction with farm operations (including any forestry or timbering operations and the preparation for market and delivery to storage or to market or to carriage for transportation to market of farm produce).

THE INDUSTRIAL DISPUTES ACT, 1947

Introduction Prior to the year 1947, industrial disputes were being settled under the provisions of the Trade Disputes Act, 1929. Experience of the working of the 1929 Act revealed various defects which needed to be overcome by a fresh legislation. Accordingly the Industrial Disputes Bill was introduced in the Legislature. The Bill was referred to the select committee. On the recommendations of the Select Committee amendments were made in the original Bill. Statement of objects and reasons Experience of the working of the Trade Disputes Act, 1929, has revealed that its main defect is that while restraints have been imposed on the rights of strike and lock-out in public utility services no provision has been made to render the proceedings institutable under the Act for the settlement of an industrial dispute, either by reference to a Board of Conciliation or to a Court of Inquiry, conclusive and binding on the parties to the dispute. This defect was overcome during the war by empowering under Rule 81A of the Defence of India, Rules, the Central Government to refer industrial disputes to adjudicators and to enforce their awards. Rule 81A, which was to lapse on the 1st October, 1946, is being kept in force by the Emergency Powers (Continuance) Ordinance, 1946, for a further period of six months; and as industrial unrest in checking which this rule has proved useful, is gaining momentum due to the stress of post industrial re-adjustment, the need of permanent legislation in replacement of this rule is self-evident. This Bill embodies the essential principles of Rule 81A, which have proved generally acceptable to both employers and workmen, retaining intact, for the most part, the provisions of the Trade Disputes Act, 1929. The two institutions for the prevention and settlement of industrial disputes provided for in the Bill are the Works Committees consisting of representatives of employers and workmen, Industrial Tribunal consisting of one or more members possessing qualifications ordinarily required for appointment as Judge of a High Court. Power has been given to appropriate Government to require Works Committees to be constituted in every industrial establishment employing 100 workmen, or more and their duties will be to remove causes of friction between the employer and workmen in the day-to-day working of the establishment and to promote measures for securing amity and good relations between them. Industrial peace will be most enduring where it is founded on voluntary settlement, and it is hoped that the Works Committees will render recourse to the remaining machinery provided for in the Bill for the settlements of disputes infrequent. A reference to an Industrial Tribunal will lie where both the parties to an industrial dispute apply for such reference and also where the appropriate Government considers it expedient so to do. An award of a Tribunal may be enforced either wholly or in part by the appropriate Government for a period not exceeding one year. The power to refer disputes to Industrial Tribunals and enforce their awards is an essential corollary to the obligation that lies on the Government to secure conclusive determination of the disputes with a view to redressing the legitimate grievances of the parties thereto, such

obligation arising from the imposition of restraints on the rights of strike and lock-out, which must remain inviolate, except where considerations of public interest override such rights. The Bill also seeks to re-orient the administration of the conciliation machinery provided in the Trade Disputes Act. Conciliation will be compulsory in all disputes in public utility services and optional in the case of other industrial establishments. With a view to expedite conciliation proceedings time limits have been prescribed for conclusion thereof14 days in the case of conciliation officers and two months in the case of Board of Conciliation from the date of notice of strike. A settlement arrived at in the course of conciliation proceedings will be binding for such period as may be agreed upon by the parties and where no period has been agreed upon, for a period of one year, and will continue to be binding until revoked by a 3 month's notice by either party to the dispute. Another important new feature of the Bill relates to the prohibition of strikes and lockouts during the pendency of conciliation and adjudication proceedings of settlements reached in the course of conciliation proceedings and of awards of Industrial Tribunals declared binding by the appropriate Government. The underlying argument is that where a dispute has been referred to conciliation for adjudication a strike or lock-out, in furtherance thereof, is both unnecessary and inexpedient. Where, on the date of reference to conciliation or adjudication a strike or lock-out is already in existence, power is given to the appropriate Government to prohibit its continuance lest the chances of settlement or speedy determination of the dispute should be jeopardized. The Bill also empowers the appropriate Government to declare, if public interest or emergency so requires, by notification in the Official Gazette, any industry to be a public utility service, for such period, if any, as may be specified in the notification. Act 14 of 1847 The Industrial Disputes Bill having been passed by the Legislature received its assent on 11th March, 1947. It came into force on first day of April, 1947 as THE INDUSTRIAL DISPUTES ACT, 1947 (14 of 1947). CHAPTER I - PRELIMINARY 1. Short title, extent and commencement (1) This Act may be called the Industrial Disputes Act, 1947. (2) It extends to the whole of India. (3) It shall come into force on the first day of April, 1947. 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 any industry carried on by or under the authority of the Central Government, or by a railway company or concerning any such controlled industry as may be specified in this behalf by the Central Government or in relation to an industrial dispute concerning 1a Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), or 1the Industrial Finance Corporation of India Limited formed and registered under the Companies Act, 1956 (1 of 1956) 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 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 Corporation Limited registered under the Companies Act, 1956 (1 of 1956), 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 Airports Authority of India constituted under section 3 of the Airports Authority of India Act, 1994 (55 of 1994), 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 Limited, the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987), or an air transport service, or a banking or an insurance company, a mine, an oil field, a Cantonment Board, or a major port, the Central Government, and (ii) in relation to any other industrial dispute, the State Government; (aa) "arbitrator" includes an umpire; (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, (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;

(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; (bb) "banking company" means a banking company as defined in section 5 of the 3 Banking Companies Act, 1949 (10 of 1949), having branches or other establishments in more than one State, and includes the Export - Import Bank of India the Industrial Reconstruction Bank of India, the Industrial Development Bank of India, the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989, the Reserve Bank of India, the State Bank of India, a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) 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; (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; (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;
1

(f) "Court" means a Court of Inquiry constituted under this Act; (g) "employer" means (i) in relation to any industry carried on by or under the authority of any department of 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; (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; (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: 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; (j) "industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen; (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 persons; (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 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. CHAPTER II - AUTHORITIES UNDER THIS ACT 3. Works Committee (1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months, the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer. The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926). (2) It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters. 4. Conciliation officers -

(1) The appropriate Government may, by notification in the Official Gazette, appoint such number of persons as it thinks fit, to be conciliation officers, charged with the duty of mediating in and promoting the settlement of industrial disputes. (2) A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period. 5. Boards of Conciliation (1) The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Board of Conciliation for promoting the settlement of an industrial dispute. (2) A Board shall consist of a chairman and two or four other members, as the appropriate Government thinks fit. (3) The chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party: Provided that, if any party fails to make a recommendation as aforesaid within the prescribed time, the appropriate Government shall appoint such persons as it thinks fit to represent that party. (4) A Board, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number: Provided that if the appropriate Government notifies the Board that the services of the chairman or of any other member have ceased to be available, the Board shall not act until a new chairman or member, as the case may be, has been appointed. 6. Courts of Inquiry (1) The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute. (2) A court may consist of one independent person or of such number of independent persons as the appropriate Government may think fit and where a court consists of two or more members, one of them shall be appointed as the chairman. (3) A court, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number: Provided that, if the appropriate Government notifies the court that the services of the chairman have ceased to be available, the court shall not act until a new chairman has been appointed. 7. Labour Courts -

(1) The appropriate Government may, by notification in the Official Gazette, constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act. (2) A Labour Court shall consist of one person only to be appointed by the appropriate Government. (3) A person shall not be qualified for appointment as the presiding officer of a Labour Court, unless (a) he is, or has been, a Judge of a High Court; or (b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge; or (d) he has held any judicial office in India for not less than seven years; or (e) he has been the presiding officer of a Labour Court constituted under any Provincial Act or State Act for not less than five years. COMMENTS This section relates to the constitution of the Labour Court for adjudication of industrial disputes relating to any matter specified in the Second Schedule; Jagdish Narain Sharma v. Rajasthan Patrika Ltd., 1994 LLR 265 (Raj). 7A. Tribunals (1) The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act. (2) A Tribunal shall consist of one person only to be appointed by the appropriate Government. (3) A person shall not be qualified for appointment as the presiding officer of a Tribunal unless (a) he is, or has been, a Judge of a High Court; or (aa) he has, for a period of not less than three-years, been a District Judge or an Additional District Judge; (4) The appropriate Government may, if it so thinks fit, appoint two persons as assessors to advise the Tribunal in the proceeding before it. COMMENTS

Section 7A empowers the appropriate Government to constitute one or more Industrial Tribunals for adjudication of the disputes relating to any matter specified in the Schedules. The Second Schedule enumerates the matters which fall within the jurisdiction of the Labour Court. The Third Schedule enumerates the matters which fall within the jurisdiction of the Industrial Tribunal; Jagdish Narain Sharma v. Rajasthan Patrika Ltd., 1994 LLR 265 (Raj). 7B. National Tribunals (1) The Central Government may, by notification in the Official Gazette, constitute one or more National Industrial Tribunals for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such disputes. (2) A National Tribunal shall consist of one person only to be appointed by the Central Government. (3) A person shall not be qualified for appointment as the presiding officer of a National Tribunal unless he is, or has been, a judge of a High Court. (4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the National Tribunal in the proceeding before it. 7C. Disqualifications for the presiding officers of Labour Courts, Tribunals and National Tribunals No person shall be appointed to, or continue in, the office of the presiding officer of a Labour Court, Tribunal or National Tribunal, if (a) he is not an independent person; or (b) he has attained the age of sixty-five years.

8. Filling of vacancies If, for any reason a vacancy (other than a temporary absence) occurs in the office of the presiding officer of a Labour Court, Tribunal or National Tribunal or in the office of the Chairman or any other member of a Board or court, then, in the case of a National Tribunal, the Central Government and in any other case, the appropriate Government, shall appoint another person in accordance with the provisions of this Act to fill the vacancy, and the proceeding may be continued before the Labour Court, Tribunal, National Tribunal, Board or Court, as the case may be, from the stage at which the vacancy is filled. 9. Finality of orders constituting Boards, etc. (1) No order of the appropriate Government or of the Central Government appointing any person as the Chairman or any other member of a Board or Court or as the presiding officer of a Labour Court, Tribunal or National Tribunal shall be called in question in any manner; and no act or proceeding before any Board or Court shall be called in question in any manner on the ground merely of the existence of any vacancy in, or defect in the constitution of, such Board or Court. (2) No settlement arrived at in the course of a conciliation proceeding shall be invalid by reason only of the fact that such settlement was arrived at after the expiry of the period referred to in sub-section (6) of section 12 or sub-section (5) of section 13, as the case may be. (3) Where the report of any settlement arrived at in the course of conciliation proceeding before a Board is signed by the chairman and all the other members of the Board, no such settlement shall be invalid by reason only of the casual or unforeseen absence of any of the members (including the Chairman) of the Board during any stage of the proceeding. CHAPTER IIA - NOTICE OF CHANGE 9A. Notice of change No, employer, who proposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change, (a) without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected; or (b) within twenty-one days of giving such notice: Provided that no notice shall be required for effecting any such change (a) where the change is effected in pursuance of any settlement or award; or

(b) where the workmen likely to be affected by the change 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 Services (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. Comments (i) Section 9A of the Act requires an employer to give notice in respect of any change in conditions of service which includes allowances also; Ram Swaroop Sharma v. Coal India Ltd., 1998 LLR 588. (ii) The State Bank of India imposed additional conditions for granting permission to award Staff to seek election to any public/civic body. Held, since the relevant rules had always prohibited the acceptance of office on public/civic bodies by the Award Staff without prior sanction of SBI, the imposition of additional conditions were not violative of section 9A of the Act as they were issued to ensure that the functioning of a Bank is free from political influences and favouritism, and that the employees attend to their duties, during office hours; General Manager (Operations). State Bank of India v. State Bank of India Staff Union, (1998) 3 SCC 506. 9B. Power of Government to exempt Where the appropriate Government is of opinion that the application of the provisions of section 9A to any class of industrial establishments or to any class of workmen employed in any industrial establishment affect the employers in relation thereto so prejudicially that such application may cause serious repercussion on the industry concerned and that public interest so requires, the appropriate Government may, by notification in the Official Gazette, direct that the provisions of the said section shall not apply or shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or to that class of workmen employed in any industrial establishment.* CHAPTER III - REFERENCE OF DISPUTES TO BOARDS, COURTS OR TRIBUNALS 10. Reference of disputes to Boards, Courts or Tribunals (1) Where the appropriate Government is of opinion that any industrial dispute exists or is apprehended, it may at any time, by order in writing (a) refer the dispute to a Board for promoting a settlement thereof; or (b) refer any matter appearing to be connected with or relevant to the dispute to a court for inquiry; or (c) refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, if it relates to any matter specified in the Second Schedule, to a Labour court for adjudication; or

(d) refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, whether it relates to any matter specified in the Second Schedule or the Third Schedule, to a Tribunal for adjudication : Provided that where the dispute relates to any matter specified in the Third Schedule and is not likely to affect more than one hundred workmen, the appropriate Government may, if it so thinks fit, make the reference to a Labour Court under clause (c): Provided further that where the dispute relates to a public utility service and a notice under section 22 has been given, the appropriate Government shall, unless it considers that the notice has been frivolously or vexatiously given or that it would be inexpedient so to do, make a reference under this sub-section notwithstanding that any other proceedings under this Act in respect of the dispute may have commenced: Provided also that where the dispute in the relation to which the Central Government is the appropriate Government, it shall be competent for the Government to refer the dispute to a Labour Court or an Industrial Tribunal, as the case may be, constituted by the State Government. (1A) Where the Central Government is of opinion that any industrial dispute exists or is apprehended and the dispute involves any question of national importance or is of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such dispute and that the dispute should be adjudicated by a National Tribunal, then, the Central Government may, whether or not it is the appropriate Government in relation to that dispute, at any time, by order in writing, refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, whether it relates to any matter specified in the Second Schedule or the Third Schedule, to a National Tribunal for adjudication. (2) Where the parties to an industrial dispute apply in the prescribed manner, whether jointly or separately, for a reference of the dispute to a Board, Court, Labour Court, Tribunal or National Tribunal, the appropriate Government, if satisfied that the persons applying represent the majority of each party, shall make the reference accordingly. (2A) An order referring an industrial dispute to a Labour Court, Tribunal or National Tribunal under this section shall specify the period within which such Labour Court, Tribunal or National Tribunal shall submit its award on such dispute to the appropriate Government: Provided that where such industrial dispute is connected with an individual workman, no such period shall exceed three months: Provided further that where the parties to an industrial dispute apply in the person entitled, be recovered by that Government in the same manner as an arrear of land revenue. (8) Every Labour Court, Tribunal or National Tribunal shall be deemed to be Civil Court for the purposes of sections 345, 346 and 348 of the Code of Criminal Procedure, 1973 (2 of 1974).

10A. Voluntary reference of disputes to arbitration (1) Where any industrial dispute exists or is apprehended and the employer and the workmen agree to refer the dispute to arbitration, they may, at any time before the dispute has been referred under section 10 to a Labour Court or Tribunal or National Tribunal, by a written agreement, refer the dispute to arbitration and the reference shall be to such person or persons (including the presiding officer of a Labour Court or Tribunal or National Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement. (1A) Where an arbitration agreement provides for a reference of the dispute to an even number of arbitrators, the agreement shall provide for the appointment of 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 for the purpose of this Act. (2) An arbitration agreement referred to in sub-section (1) shall be in such form and shall be signed by the parties thereto in such manner as may be prescribed. (3) A copy of the arbitration agreement shall be forwarded to the appropriate Government and the conciliation officer and the appropriate Government shall, within one month from the date of the receipt of such copy, publish the same in the Official Gazette. (3A) Where an industrial dispute has been referred to arbitration and the appropriate Government is satisfied that the persons making the reference represent the majority of each party, the appropriate Government may, within the time referred to in sub-section (3), issue a notification in such manner as may be prescribed; and when any such notification is issued, the employers and workmen who are not parties to the arbitration agreement but are concerned in the dispute, shall be given an opportunity of presenting their case before the arbitrator or arbitrators. (4) 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, as the case may be. (4A) Where an industrial dispute has been referred to arbitration and a notification has been issued under sub-section (3A), the appropriate Government may, by order, prohibit the continuance of any strike or lock-out in connection with such dispute which may be in existence on the date of the reference. (5) Nothing in the Arbitration Act, 1940 (10 of 1940) shall apply to arbitrations under this section. CHAPTER IV - PROCEDURE, POWERS AND DUTIES OF AUTHORITIES 11. Procedure and power of conciliation officers, Boards, Courts and Tribunals (1) Subject to any rules that may be made in this behalf, an arbitrator, a Board, Court, Labour Court, Tribunal or National Tribunal shall follow such procedure as the arbitrator or other authority concerned may think fit.

(2) A conciliation officer or a member of a Board, or court or the presiding officer of a Labour Court, Tribunal or National Tribunal may for the purpose of inquiry into any existing or apprehended industrial dispute, after giving reasonable notice, enter the premises occupied by any establishment to which the dispute relates. (3) Every Board, Court, Labour Court, Tribunal and National Tribunal shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit, in respect of the following matters, namely : (a) enforcing the attendance of any person and examining him on oath; (b) compelling the production of documents and material objects; (c) issuing commissions for the examination of witnesses; (d) in respect of such other matters as may be prescribed, and every inquiry or investigation by a Board, Court, Labour Court, Tribunal or National Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860). (4) A conciliation officer may enforce the attendance of any person for the purpose of examination of such person or call for and inspect any document which he has ground for considering to be relevant to the industrial dispute or to be necessary for the purpose of verifying the implementation of any award or carrying out any other duty imposed on him under this Act, and for the aforesaid purposes, the conciliation officer shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), in respect of enforcing the attendance of any person and examining him or of compelling the production of documents. (5) A Court, Labour Court, Tribunal or National Tribunal may, if it so thinks fit, appoint one or more persons having special knowledge of the matter under consideration as an assessor or assessors to advise it in the proceeding before it. (6) All conciliation officers, members of a Board or Court and the presiding officers of a Labour Court, Tribunal or National Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). (7) Subject to any rules made under this Act, the costs of, and incidental to, any proceeding before a Labour Court, Tribunal or National Tribunal shall be in the discretion of that Labour Court, Tribunal or National Tribunal and the Labour Court, Tribunal or National Tribunal, as the case may be, shall have full power to determine by and to whom and to what extent and subject to what conditions, if any, such costs are to be paid, and to give all necessary directions for the purposes aforesaid and such costs may, on application made to the appropriate Government by the person entitled, be recovered by that Government in the same manner as an arrear of land revenue. (8) Every Labour Court, Tribunal or National Tribunal shall be deemed to be Civil Court for the purposes of sections 345, 346 and 348 of the Code of Criminal Procedure, 1973 (2 of 1974).

11A. Powers of Labour Courts, Tribunals and National Tribunals to give appropriate relief in case of discharge or dismissal of workmen Where an industrial dispute relating to the discharge or dismissal of a workman has been referred to a Labour Court, Tribunal or National Tribunal for adjudication and, in the course of the adjudication proceedings, the Labour Court, Tribunal or National Tribunal, as the case may be, is satisfied that the order of discharge or dismissal was not justified, it may, by its award, set aside the order of discharge or dismissal and direct reinstatement of the workman on such terms and conditions, if any, as it thinks fit, or give such other relief to the workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may require: Provided that in any proceeding under this section the Labour Court, Tribunal or National Tribunal, as the case may be, shall rely only on the materials on record and shall not take any fresh evidence in relation to the matter. COMMENTS (i) The power under section 11A is akin to appellate power. The competent adjudicating authority has jurisdiction to interfere with the quantum of punishment even in cases where finding of guilt recorded by the employer is upheld or in the case of no enquiry or defective enquiry; Vidya Dhar v. The Hindustan Copper Ltd., 1994 LLR 229 (Raj). (ii) Once the misconduct is established, the maximum punishment stipulated therefor can be awarded. However, the Labour Court has full discretion to award lesser punishment; Hindalco Workers Union v. Labour Court, 1994 LLR 379 (All). (iii) The order of termination of services of a workman operates prospectively from the date on which it was passed; Kumaon Motor Owner's Union Ltd. v. State of U.P., 1994 LLR 366 (All.). (iv) Labour Court has powers under section 11A of the Act to evaluate the gravity of the misconduct for the imposition of punishment on workman (who was found sleeping while on duty) and exercise its discretion; Management, Lakshmi Machine Works Ltd. v. P.O. Labour Court, Coimbatore, 1948 LLR 368. 12. Duties of conciliation officers (1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall, hold conciliation proceedings in the prescribed manner. (2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute without delay investigate the dispute and all matters affecting the merits and right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. (3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliation officer shall send a report thereof to the appropriate Government or an officer authorised in this behalf by the appropriate

Government together with a memorandum of the settlement signed by the parties to the dispute. (4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at. (5) If, on a consideration of the report referred to in sub-section (4), the appropriate Government is satisfied that there is a case for reference to a Board, Labour Court, Tribunal or National Tribunal, it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor. (6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: Provided that, subject to the approval of the conciliation officer, the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute. COMMENTS (i) The appropriate Government acting under section 10 or section 12(5) of the Act has no power to decide the merits of the controversy. It can only determine whether dispute exists or not; Sukhbir Singh v. Union of India, 1994 LLR 375 (Del). (ii) According to section 12(5) of the Act, the appropriate Government, while rejecting the request for reference of the dispute to the Industrial Tribunal, is obliged to give reasons; Sukhbir Singh v. Union of India, 1994 LLR 375 (Del). 13. Duties of Board (1) Where a dispute has been referred to a Board under this Act, it shall be the duty of the Board to endeavour to bring about a settlement of the same and for this purpose the Board shall, in such manner as it thinks fit and without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. (2) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings, the Board shall send a report thereof to the appropriate Government together with a memorandum of the settlement signed by the parties to the dispute. (3) If no such settlement is arrived at, the Board shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting for the proceedings and steps taken by the Board for ascertaining the facts and circumstances

relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, its findings thereon, the reasons on account of which, in its opinion, a settlement could not be arrived at and its recommendations for the determination of the dispute. (4) If, on the receipt of a report under sub-section (3) in respect of a dispute relating to a public utility service, the appropriate Government does not make a reference to a Labour Court, Tribunal or National Tribunal under section 10, it shall record and communicate to the parties concerned its reasons therefor. (5) The Board shall submit its report under this section within two months of the date on which the dispute was referred to it or within such shorter period as may be fixed by the appropriate Government: Provided that the appropriate Government may from time to time extend the time for the submission of the report by such further periods not exceeding two months in the aggregate: Provided further that the time for the submission of the report may be extended by such period as may be agreed on in writing by all the parties to the dispute. 14. Duties of Courts A Court shall inquire into the matters referred to it and report thereon to the appropriate Government ordinarily within a period of six months from the commencement of its inquiry. 15. Duties of Labour Courts, Tribunals and National Tribunals Where an industrial dispute has been referred to a Labour Court, Tribunal or National Tribunal for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such industrial dispute or the further period extended under the second proviso to sub-section (2A) of section 10, submit its award to the appropriate Government. 16. Form of report or award (1) The report of a Board or Court shall be in writing and shall be signed by all the members of the Board or Court, as the case may be : Provided that nothing in this section shall be deemed to prevent any member of the Board or Court from recording any minute of dissent from a report or from any recommendation made therein. (2) The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by its presiding officer. 17. Publication of reports and awards -

(1) Every report of a Board or Court together with any minute of dissent recorded therewith, every arbitration award and every award of a Labour Court, Tribunal or National Tribunal shall, within a period of thirty days from the date of its receipt by the appropriate Government, be published in such manner as the appropriate Government thinks fit. (2) Subject to the provisions of section 17A, the award published under sub-section (1) shall be final and shall not be called in question by any court in any manner whatsoever. 17A. Commencement of the award (1) An award (including an arbitration award) shall become enforceable on the expiry of thirty days from the date of its publication under section 17: Provided that (a) if the appropriate Government is of opinion, in any case where the award has been given by a Labour Court or Tribunal in relation to an industrial dispute to which it is a party; or (b) if the Central Government is of opinion, in any case where the award has been given by a National Tribunal, that it will be inexpedient on public grounds affecting national economy or social justice to give effect to the whole or any part of the award, the appropriate Government, or as the case may be, the Central Government may, by notification in the Official Gazette, declare that the award shall not become enforceable on the expiry of the said period of thirty days. (2) Where any declaration has been made in relation to an award under the proviso to sub-section (1), the appropriate Government or the Central Government may, within ninety days from the date of publication of the award under section 17, make an order rejecting or modifying the award, and shall, on the first available opportunity, lay the award together with a copy of the order before the Legislature of the State, if the order has been made by a State Government, or before Parliament, if the order has been made by the Central Government. (3) Where any award as rejected or modified by an order made under sub-section (2) is laid before the Legislature of a State or before Parliament, such award shall become enforceable on the expiry of fifteen days from the date on which it is so laid; and where no order under sub-section (2) is made in pursuance of a declaration under the proviso to sub-section (1), the award shall become enforceable on the expiry of the period of ninety days referred to in sub-section (2). (4) Subject to the provisions of sub-section (1) and sub-section (3) regarding the enforceability of an award, the award shall come into operation with effect from such date as may be specified therein, but where no date is so specified, it shall come into operation on the date when the award becomes enforceable under sub-section (1) or sub-section (3), as the case may be. Comments

Held, Industrial Tribunal retains its jurisdiction to deal with an application for setting aside an ex parte award only until the expiry of 30 days from publication of the award. Thereafter, tribunal is relegated to the position of functus officio; Ranigunj Chemical Works v. Learned Judge, Fourth Industrial Tribunal, 1998 LLR 475 17B. Payment of full wages to workman pending proceedings in higher courts Where in any case, a Labour Court, Tribunal or National Tribunal by its award directs reinstatement of any workman and the employer prefers any proceedings against such award in a High Court or the Supreme Court, the employer shall be liable to pay such workman, during the period of pendency of such proceedings in the High Court or the Supreme Court, full wages last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if the workman had not been employed in any establishment during such period and an affidavit by such workman had been filed to that effect in such court: Provided that where it is proved to the satisfaction of the High Court or the Supreme Court that such workman had been employed and had been receiving adequate remuneration during any such period or part thereof, the court shall order that no wages shall be payable under this section for such period or part, as the case may be. (i) it is commenced or declared in contravention of section 22 or section 23; or (ii) it is continued in contravention of an order made under sub-section (3) of section 10 or sub-section (4A) of section 10A. (2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Board, an arbitrator, a Labour Court, Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be deemed to be illegal, provided that such strike or lock-out was not at its commencement in contravention of the provisions of this Act or the continuance thereof was not prohibited under sub-section (3) of section 10 or sub-section (4A) of section 10A (3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. 18. Persons on whom settlements and awards are binding (1) A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement. (2) Subject to the provisions of sub-section (3), an arbitration award which has become enforceable shall be binding on the parties to the agreement who referred the dispute to arbitration. (3) A settlement arrived at in the course of conciliation proceedings under this Act or an arbitration award in a case where a notification has been issued under sub-section (3A)

of section 10A or an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on (a) all parties to the industrial dispute; (b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, arbitrator Labour Court, Tribunal or National Tribunal, as the case may be, records the opinion that they were so summoned without proper cause; (c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates; (d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part. COMMENTS Settlements are divided into two categories, namely. (i) those arrived at outside the conciliation proceedings; and (ii) those arrived at in the course of conciliation proceedings. A settlement arrived at in the course of conciliation proceedings with a recognised majority union will be binding on all workmen of the establishment irrespective of any objection; All India Textile Janta Union v. The Labour Commissioner, 1994 LLR 203 (P&H) (DB). 19. Period of operation of settlements and awards (1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute. (2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party or parties to the settlement. (3) An award shall, subject to the provisions of this section, remain in operation for a period of one year from the date on which the award becomes enforceable under section 17A: Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit: Provided further that the appropriate Government may, before the expiry of the said period, extend the period of operation by any period not exceeding one year at a time as it thinks fit so, however, that the total period of operation of any award does not exceed three years from the date on which it came into operation.

(4) Where the appropriate Government, whether of its own motion or on the application of any party bound by the award, considers that since the award was made, there has been a material change in the circumstances on which it was based, the appropriate Government may refer the award or a part of it to a Labour Court, if the award was that of a Labour Court or to a Tribunal, if the award was that of a Tribunal or of a National Tribunal, for decision whether the period of operation should not, by reason of such change, be shortened and the decision of Labour Court or the Tribunal, as the case may be on such reference shall, be final. (5) Nothing contained in sub-section (3) shall apply to any award which by its nature, terms or other circumstances does not impose, after it has been given effect to, any continuing obligation on the parties bound by the award. (6) Notwithstanding the expiry of the period of operation under sub-section (3), the award shall continue to be binding on the parties until a period of two months has elapsed from the date on which notice is given by any party bound by the award to the other party or parties intimating its intention to terminate the award. (7) No notice given under sub-section (2) or sub-section (6) shall have effect, unless it is given by a party representing the majority of persons bound by the settlement or award, as the case may be. 20. Commencement and conclusion of proceedings (1) A conciliation proceeding shall be deemed to have commenced on the date on which a notice of strike or lock-out under section 22 is received by the conciliation officer or on the date of the order referring the dispute to a Board, as the case may be. (2) A conciliation proceeding shall be deemed to have concluded (a) where a settlement is arrived at, when a memorandum of the settlement is signed by the parties to the dispute; (b) where no settlement is arrived at, when the report of the conciliation officer is received by the appropriate Government or when the report of the Board is published under section 17, as the case may be; or (c) when a reference is made to a court, Labour Court, Tribunal or National Tribunal under section 10 during the pendency of conciliation proceedings. (3) Proceedings before an arbitrator under section 10A or before a Labour Court, Tribunal or National Tribunal shall be deemed to have commenced on the date of the reference of the dispute for arbitration or adjudication, as the case may be and such proceedings shall be deemed to have concluded on the date on which the award becomes enforceable under section 17A. 21. Certain matters to be kept confidential -

There shall not be included in any report or award under this Act, any information obtained by a conciliation officer, Board, Court, Labour Court, Tribunal, National Tribunal or an arbitrator in the course of any investigation or inquiry as to a trade union or as to any individual business (whether carried on by a person, firm or company) which is not available otherwise than through the evidence given before such officer, Board, Court, Labour Court, Tribunal, National Tribunal or arbitrator, if the trade union, person, firm or company, in question has made a request in writing to the conciliation officer, Board, Court Labour Court, Tribunal, National Tribunal or arbitrator, as the case may be, that such information shall be treated as confidential; nor shall such conciliation officer or any individual member of the Board, or Court or the presiding officer of the Labour Court, Tribunal or National Tribunal or the arbitrator or any person present at or concerned in the proceedings disclose any such information without the consent in writing of the secretary of the trade union or the person, firm or company in question, as the case may be: Provided that nothing contained in this section shall apply to a disclosure of any such information for the purposes of a prosecution under section 193 of the Indian Penal Code (45 of 1860). CHAPTER V - STRIKES AND LOCK-OUTS 22. Prohibition of strikes and lock-outs (1) No person employed in a public utility service shall go on strike, in breach of contract (a) without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or (b) within fourteen days of giving such notice ; or (c) before the expiry of the date of strike specified in any such notice as aforesaid; or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. (2) No employer carrying on any public utility service shall lock-out any of his workman (a) without giving them notice of lock-out as hereinafter provided, within six weeks before locking-out; or (b) within fourteen days of giving such notice; or (c) before the expiry of the date of lock-out specified in any such notice as aforesaid; or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. (3) The notice of lock-out or strike under this section shall not be necessary where there is already in existence a strike or, as the case may be, lock-out in the public utility

service, but the employer shall send intimation of such lock-out or strike on the day on which it is declared, to such authority as may be specified by the appropriate Government either generally or for a particular area or for a particular class of public utility services. (4) The notice of strike referred to in sub-section (1) shall be given by such number of persons to such person or persons and in such manner as may be prescribed. (5) The notice of lock-out referred to in sub-section (2) shall be given in such manner as may be prescribed. (6) If on any day an employer receives from any person employed by him any such notices as are referred to in sub-section (1) or gives to any persons employed by him any such notices as are referred to in sub-section (2), he shall within five days, thereof report to the appropriate Government or to such authority as that Government may prescribe the number of such notices received or given on that day. 23. General prohibition of strikes and lock-outs No workman who is employed in any industrial establishment shall go on strike in breach of contract and no employer of any such workman shall declare a lock-out (a) during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings; (b) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months, after the conclusion of such proceedings; (bb) during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under sub-section (3A) of section 10A; or (c) during any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award. 24. Illegal strikes and lock-outs (1) A strike or a lock-out shall be illegal if (i) it is commenced or declared in contravention of section 22 or section 23; or (ii) it is continued in contravention of an order made under sub-section (3) of section 10 or sub-section (4A) of section 10A. (2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Board, an arbitrator, a Labour Court, Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be deemed to be illegal, provided that such strike or lock-out was not at its commencement in contravention of the provisions of this Act or the continuance

thereof was not prohibited under sub-section (3) of section 10 or sub-section (4A) of section 10A (3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. COMMENTS This section deals with the permission for closure of undertaking; Union Carbide Karamchari Sangh v. Union of India, 1993 LLR 481 (MP). 25. Prohibition of financial aid to illegal strikes and lock-outs No person shall knowingly expend or apply any money in direct furtherance or support of any illegal strike or lock-out.

CHAPTER VA - LAY-OFF AND RETRENCHMENT 25A. Application of sections 25C to 25E (1) Sections 25C to 25E inclusive shall not apply to Industrial Establishments to which Chapter VB applies, or (a) to industrial establishments in which less than fifty workmen on an average per working day have been employed in the preceding calendar month; or (b) to industrial establishments which are of a seasonal character or in which work is performed only intermittently. (2) If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final. Explanation - In this section and in sections 25C, 25D and 25E, "industrial establishment" means (i) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948); or (ii) a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952); or (iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951). 25B. Definition of continuous service For the purposes of this Chapter, (1) a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorised leave or an accident or as strike which is not illegal, or a lockout or a cessation of work which is not due to any fault on the part of the workman; (2) where a workman is not in continuous service within the meaning of clause (1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer (a) for a period of one year, if the workman, during a 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 a workman employed below ground in a mine; and (ii) two hundred and forty days, in any other case;

(b) for a period of six months, if the workman, during a period of six 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) ninety-five days, in the case of workman employed below ground in a mine; and (ii) one hundred and twenty days, in any other case. Explanation - For the purposes of clause (2), the number of days on which a workman 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 Act or under any other law applicable to the industrial establishment; (ii) he has been on leave with full wages, earned in the previous years; (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. COMMENTS (i) A workman is deemed to be in continuous service for a period of one year, if he, during the period of twelve calendar months preceding the date of termination, has actually worked under the employer for not less than 240 days; Gram Panchayat v. Sharadkumar D. Acharya, 1994 LLR 470 (Guj) (DB). (ii) Only cases not falling under sub-section (1) are covered by sub-section (2) of section 25B; G. Yadi Reddy v. Brook Bond India Ltd., 1994 LLR 328 (AP) (DB). (iii) In the computation of the period under sub-section (2) of section 25B, Sundays and holidays should be taken into account; G.Yadi Reddy v. Brook Bond India Ltd., 1994 LLR 328 (AP) (DB).

25C. Right of workmen laid-off for compensation Whenever a workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laidoff, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent, of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid-off: Provided that if during any period of twelve months, a workman is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the workman and the employer: Provided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the workman in accordance with the provisions contained in section 25F at any time after the expiry of the first forty-five days of the layoff and when he does so, any compensation paid to the workman for having been laidoff during the preceding twelve months may be set off against the compensation payable for retrenchment. Explanation - "Badli workman" means a workman who is employed in an industrial establishment in the place of another workman whose name is borne on the muster rolls of the establishment, but shall cease to be regarded as such for the purposes of this section, if he has completed one year of continuous service in the establishment. 25D. Duty of an employer to maintain muster rolls of workmen Notwithstanding that workmen in any industrial establishment have been laid-off, it shall be the duty of every employer to maintain for the purposes of this Chapter a muster roll, and to provide for the making of entries therein by workmen who may present themselves for work at the establishment at the appointed time during normal working hours. 25E. Workmen not entitled to compensation in certain cases No compensation shall be paid to a workman who has been laid-off (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of five miles from the establishment to which he belongs, if, in the opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the workman, provided that the wages which would normally have been paid to the workman are offered for the alternative employment also; (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;

(iii) if such laying-off is due to a strike or slowing-down of production on the part of workmen in another part of the establishment. 25F. Conditions precedent to retrenchment of workmen No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice; (b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months; and (c) notice in the prescribed manner is served on the appropriate Government for such authority as may be specified by the appropriate Government by notification in the Official Gazette. COMMENTS (i) Termination does not amount to retrenchment and therefore provision of section 25F is not attracted; Life Insurance Corporation of India v. Rajeev Kumar Srivastava, 1994 LLR 573 (All) (DB). (ii) The conditions enumerated in section 25F are condition precedent; State of Rajasthan v. Miss Usha Lokwani, 1994 LLR 369 (Raj). (iii) The provisions of section 25F are couched in mandatory form, and non-compliance therewith has the result of rendering the order of retrenchment void ab initio or non-est; State of Rajasthan v. Miss Usha Lokwani, 1994 LLR 369 (Raj). (iv) It is well established that the period of cessation of work not due to any fault on the part of the employee, always gets calculated as a period of continuous service; Kukadi Irrigation Project v. Waman, 1994 LLR 381 (Bom). 25FF. Compensation to workmen in case of transfer of undertakingsWhere the ownership of management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to or that undertaking to a new employer, every workman who has been in continuous service for not less than one year in that undertaking immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of section 25F, as if the workman had been retrenched : Provided that nothing in this section shall apply to a workman in any case where there has been a change of employers by reason of the transfer, if

(a) the service of the workman has not been interrupted by such transfer; (b) the terms and conditions of service applicable to the workman after such transfer are not in any way less favourable to the workman than those applicable to him immediately before the transfer; and section 2, (i) in relation to any company in which not less than fifty-one per cent. of the paidup share capital is held by the Central Government, or (ii) in relation to any corporation not being a corporation referred to in sub-clause (i) of clause (a) of section 2 established by or under any law made by Parliament, the Central Government shall be the appropriate Government. 25M. Prohibition of lay-off (1) No workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment to which this Chapter applies shall be laid-off by his employer except with the prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette (hereafter in this section referred to as the specified authority), obtained on an application made in this behalf, unless such lay-off is due to shortage of power or to natural calamity, and in the case of a mine, such lay-off is due also to fire, flood, excess of inflammable gas or explosion. (2) An application for permission under sub-section (1) shall be made by the employer in the prescribed manner stating clearly the reasons for the intended lay-off and a copy of such application shall also be served simultaneously on the workmen concerned in the prescribed manner. (3) Where the workmen (other than badli workmen or casual workmen) of an industrial establishment, being a mine, have been laid-off under sub-section (1) for reasons of fire, flood or excess of inflammable gas or explosion, the employer, in relation to such establishment, shall, within a period of thirty days from the date of commencement of such lay-off, apply, in the prescribed manner, to the appropriate Government or the specified authority for permission to continue the lay-off. (4) Where an application for permission under sub-section (1) or sub-section (3) has been made, the appropriate Government or the specified authority, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen concerned and the persons interested in such lay-off, may, having regard to the genuineness and adequacy of the reasons for such lay-off, the interests of the workmen and all other relevant factors, by order and for reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen. (5) Where an application for permission under sub-section (1) or sub-section (3) has been made and the appropriate Government or the specified authority does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission

applied for shall be deemed to have been granted on the expiration of the said period of sixty days. (6) An order of the appropriate Government or the specified authority granting or refusing to grant permission shall, subject to the provisions of sub-section (7), be final and binding on all the parties concerned and shall remain in force for one year from the date of such order. (7) The appropriate Government or the specified authority may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (4) or refer the matter or, as the case may be, cause it to be referred, to a Tribunal for adjudication : Provided that where a reference has been made to a Tribunal under this subsection, it shall pass an award within a period of thirty days from the date of such reference. (8) Where no application for permission under sub-section (1) is made, or where no application for permission under sub-section (3) is made within the period specified therein, or where the permission for any lay-off has been refused, such lay-off shall be deemed to be illegal from the date on which the workmen had been laid-off and the workmen shall be entitled to all the benefits under any law for the time being in force as if they had not been laid-off. (9) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate Government may, if it is satisfied that owing to such exceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary so to do, by order, direct that the provisions of sub-section (1), or, as the case may be, sub-section (3) shall not apply in relation to such establishment for such period as may be specified in the order. (10) The provisions of section 25C (other than the second proviso thereto) shall apply to cases of lay-off referred to in this section. Explanation - For the purposes of this section, a workman shall not be deemed to be laid-off by an employer if such employer offers any alternative employment (which in the opinion of the employer does not call for any special skill or previous experience and can be done by the workman) in the same establishment from which he has been laid-off or in any other establishment belonging to the same employer, situate in the same town or village, or situate within such distance from the establishment to which he belongs that the transfer will not involve undue hardship to the workman having regard to the facts and circumstances of his case, provided that the wages which would normally have been paid to the workman are offered for the alternative appointment also. COMMENTS In order to prevent hardship to the employees and to maintain higher tempo of production and productivity, section 25M of the Act puts some reasonable restrictions on the employer's right to lay-off, retrenchment and closure; Central Pulp Mills Ltd. v. Central Pulp Mills Employees Union, 1994 LLR. 130 (Guj) (DB).

25N. Conditions precedent to retrenchment of workmen (1) No workman employed in any industrial establishment to which this Chapter applies, who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until, (a) the workman has been given three months' notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice; and (b) the prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette (hereafter in this section referred to as the specified authority) has been obtained on an application made in this behalf. (2) An application for permission under sub-section (1) shall be made by the employer in the prescribed manner stating clearly the reasons for the intended retrenchment and a copy of such application shall also be served simultaneously on the workmen concerned in the prescribed manner. (3) Where an application for permission under sub-section (1) has been made, the appropriate Government or the specified authority, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen concerned and the person interested in such retrenchment, may, having regard to the genuineness and adequacy of the reasons stated by the employer, the interests of the workmen and all other relevant factors, by order and for reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen. (4) Where an application for permission has been made under sub-section (1) and the appropriate Government or the specified authority does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days. (5) An order of the appropriate Government or the specified authority granting or refusing to grant permission shall, subject to the provisions of sub-section (6), be final and binding on all the parties concerned and shall remain in force for one year from the date of such order. (6) The appropriate Government or the specified authority may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (3) or refer the matter or, as the case may be, cause it to be referred, to a Tribunal for adjudication: Provided that where a reference has been made to a Tribunal under this subsection, it shall pass an award within a period of thirty days from the date of such reference. (7) Where no application for permission under sub-section (1) is made, or where the permission for any retrenchment has been refused, such retrenchment shall be deemed to be illegal from the date on which the notice of retrenchment was given to the workman

and the workman shall be entitled to all the benefits under any law for the time being in force as if no notice had been given to him. (8) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate Government may, if it is satisfied that owing to such exceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary so to do, by order, direct that the provisions of sub-section (1) shall not apply in relation to such establishment for such period as may be specified in the order. (9) Where permission for retrenchment has been granted under sub-section (3) or where permission for retrenchment is deemed to be granted under, sub-section (4), every workman who is employed in that establishment immediately before the date of application for permission under this section shall be entitled to receive, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months. COMMENTS It is incumbent on the management to prove that the copies of the application as required by section 25N read with rule 76A of the Industrial Disputes Rules, 1957, were served on the concerned workman; Shiv Kumar v. State of Haryana, 1994 LLR 522 (SC). 25-O. Procedure for closing down an undertaking (1) An employer who intends to close down an undertaking of an industrial establishment to which this Chapter applies shall, in the prescribed manner, apply, for prior permission at least ninety days before the date on which the intended closure is to become effective, to the appropriate Government, stating clearly the reasons for the intended closure of the undertaking and a copy of such application shall also be served simultaneously on the representatives of the workmen in the prescribed manner : Provided that nothing in this sub-section shall apply to an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work. (2) Where an application for permission has been made under sub-section (1) the appropriate Government, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen and the persons interested in such closure may, having regard to the genuineness and adequacy of the reasons stated by the employer, the interests of the general public and all other relevant factors, by order and for reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen. (3) Where an application has been made under sub-section (1) and the appropriate Government does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days.

(4) An order of the appropriate Government granting or refusing to grant permission shall, subject to the provisions of sub-section (5), be final and binding on all the parties and shall remain in force for one year from the date of such order. (5) The appropriate Government may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (2) or refer the matter to a tribunal for adjudication : which the proceeding is pending for approval of the action taken by the employer. (3) Notwithstanding anything contained in sub-section (2), no employer shall, during the pendency of any such proceeding in respect of an industrial dispute, take any action against any protected workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the conditions of service applicable to him immediately before the commencement of such proceeding; or (b) by discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express permission in writing of the authority before which the proceeding is pending. Explanation - For the purposes of this sub-section, a "protected workman", in relation to an establishment, means a workman who, being a member of the executive or other office-bearer of a registered trade union connected with the establishment, is recognised as such in accordance with rules made in this behalf. (4) In every establishment, the number of workmen to be recognised as protected workmen for the purposes of sub-section (3) shall be one per cent of the total number of workmen employed therein subject to a minimum number of five protected workmen and a maximum number of one hundred protected workmen and for the aforesaid purpose, the appropriate Government may make rules providing for the distribution of such protected workmen among various trade unions, if any, connected with the establishment and the manner in which the workmen may be chosen and recognised as protected workmen. (5) Where an employer makes an application to a conciliation officer, Board, an arbitrator, a Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for approval of the action taken by him, the authority concerned shall, without delay, hear such application and pass, within a period of three months from the date of receipt of such application, such order in relation thereto as it deems fit: Provided that where any such authority considers it necessary or expedient so to do, it may, for reasons to be recorded in writing, extend such period by such further period as it may think fit: Provided further that no proceedings before any such authority shall lapse merely on the ground that any period specified in this sub-section had expired without such proceedings being completed. COMMENTS

(i) Violation of the provisions of section 33 of the Act entitles the workman to file a complaint under section 33A thereof and makes the employer liable to be punished. It, however, does not automatically entitle the employee to claim re-instatement; Kimti Lal v. State of Haryana, 1994 LLR 212 (P&H). (ii) Where there are more than one unions in operation, every union will have to be given the representation; Maharashtra State Road Transport Corporation v. The Conciliation Officer, 1994 LLR 196 (Bom). (iii) If approval is not granted the order of dismissal or discharge shall not be operative and the employee concerned shall be deemed to be in service; G.K. Sengupta v. Hindustan Construction Co. Ltd., 1994 LLR 550 (Bom). (iv) Permission should be refused if the Tribunal is satisfied that the management's action is not bona fide or that the principles of natural justice have been violated or that the material on the basis of which the management came to a certain conclusion would not justify any reasonable person in coming to such a conclusion; G.K. Sengupta v. Hindustan Construction Co. Ltd., 1994 LLR 550 (Bom). 25P. Special provision as to restarting undertakings closed down before commencement of the Industrial Disputes (Amendment) Act, 1976 If the appropriate Government is of opinion in respect of any undertaking or an industrial establishment to which this Chapter applies and which closed down before the commencement of the Industrial Disputes (Amendment) Act, 1976 (32 of 1976) (a) that such undertaking was closed down otherwise than on account of unavoidable circumstances beyond the control of the employer; (b) that there are possibilities of restarting the undertaking; (c) that it is necessary for the rehabilitation of the workmen employed in such undertaking before its closure or for the maintenance of supplies and services essential to the life of the community to restart the undertaking or both; and (d) that the restarting of the undertaking will not result in hardship to the employer in relation to the undertaking, it may, after giving an opportunity to such employer and workmen, direct, by order published in the Official Gazette, that the undertaking shall be restarted within such time (not being less than one month from the date of the order) as may be specified in the order. 25Q. Penalty for lay-off and retrenchment without previous permission Any employer who contravenes the provisions of section 25M or section 25N shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to one thousand rupees, or with both. 25R. Penalty for closure

(1) Any employer who closes down an undertaking without complying with the provisions of sub-section (1) of section 25-O shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both. (2) Any employer, who contravenes an order refusing to grant permission to close down an undertaking under sub-section (2) of section 25-O or a direction given under section 25P, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to five thousand rupees, or with both, and where the contravention is a continuing one, with a further fine which may extend to two thousand rupees for every day during which the contravention continues after the conviction. 25S. Certain provisions of Chapter VA to apply to industrial establishment to which this Chapter applies The provisions of sections 25B, 25D, 25FF, 25G, 25H and 25J in Chapter VA shall, so far as may be, apply also in relation to an industrial establishment to which the provisions of this Chapter apply. CHAPTER VC - UNFAIR LABOUR PRACTICES 25T. Prohibition of unfair labour practice No employer or workman or a trade union, whether registered under the Trade Unions Act, 1926 (16 of 1926), or not, shall commit any unfair labour practice. 25U. Penalty for committing unfair labour practices Any person who commits any unfair labour practice 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. CHAPTER VI - PENALTIES 26. Penalty for illegal strikes and lock-outs (1) Any workman who commences, continues or otherwise acts in furtherance of, a strike which is illegal under this Act, shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to fifty rupees, or with both. (2) Any employer who commences, continues, or otherwise acts in furtherance of a lockout which is illegal under this Act, shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to one thousand rupees, or with both. 27. Penalty for instigation, etc.

Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock-out which is illegal under this Act, 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. 28. Penalty for giving financial aid to illegal strikes and lock-outs Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out 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. Penalty for breach of settlement or award Any person who commits a breach of any term of any settlement or award, which is binding on him under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both, and where the breach is a continuing one, with a further fine which may extend to two hundred rupees for every day during which the breach continues after the conviction for the first and the court trying the offence, if it fines the offender, may direct that the whole or any part of the fine realised from him shall be paid, by way of compensation, to any person who, in its opinion has been injured by such breach. 30. Penalty for disclosing confidential information Any person who wilfully discloses any such information as is referred to in section 21 in contravention of the provisions of that section shall, on complaint made by or on behalf of the trade union or individual business affected, 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. 30A. Penalty for closure without notice Any employer who closes down any undertaking without complying with the provisions of section 25FFA shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both. 31. Penalty for other offences (1) Any employer who contravenes the provisions of section 33 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.

(2) Whoever contravenes any of the provisions of this Act or any rule made thereunder shall, if no other penalty is elsewhere provided by or under this Act for such contravention, be punishable with fine which may extend to one hundred rupees. CHAPTER VII - MISCELLANEOUS 32. Offence by companies, etc. Where a person committing an offence under this Act is a company, or other body corporate, or an association of persons (whether incorporated or not), every director, manager, secretary, agent or other officer or person concerned with the management thereof shall, unless he proves that the offence was committed without his knowledge or consent, be deemed to be guilty of such offence. COMMENTS This section talks of offences by companies under the Industrial Disputes Act, 1947; Rabindra Chamria v. The Registrar of Companies (W.B.), (1992) 64 FLR 939 (SC).

33. Conditions of service, etc., to remain unchanged under certain circumstances during pendency of proceedings. (1) During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any proceeding before an arbitrator or a Labour Court or Tribunal or National Tribunal in respect of an industrial dispute, no employer shall (a) in regard to any matter connected with the dispute, alter, to the prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately before the commencement of such proceeding; or (b) for any misconduct connected with the dispute, discharge or punish, whether by dismissal or otherwise, any workman concerned in such dispute, save with the express permission in writing of the authority before which the proceeding is pending. (2) During the pendency of any such proceeding in respect of an industrial dispute, the employer may, in accordance with standing orders applicable to a workman concerned in such dispute or, where there are no such standing order, in accordance with the terms of the contract, whether express or implied, between him and the workman (a) alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such workman shall be discharged or dismissed, unless he has been paid wages for one month and an application has been made by the employer to the authority before which the proceeding is pending for approval of the action taken by the employer. (3) Notwithstanding anything contained in sub-section (2), no employer shall, during the pendency of any such proceeding in respect of an industrial dispute, take any action against any protected workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the conditions of service applicable to him immediately before the commencement of such proceeding; or b) by discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express permission in writing of the authority before which the proceeding is pending. Explanation - For the purposes of this sub-section, a "protected workman", in relation to an establishment, means a workman who, being a member of the executive or other office-bearer of a registered trade union connected with the establishment, is recognised as such in accordance with rules made in this behalf. (4) In every establishment, the number of workmen to be recognised as protected workmen for the purposes of sub-section (3) shall be one per cent of the total number of

workmen employed therein subject to a minimum number of five protected workmen and a maximum number of one hundred protected workmen and for the aforesaid purpose, the appropriate Government may make rules providing for the distribution of such protected workmen among various trade unions, if any, connected with the establishment and the manner in which the workmen may be chosen and recognised as protected workmen. (5) Where an employer makes an application to a conciliation officer, Board, an arbitrator, a Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for approval of the action taken by him, the authority concerned shall, without delay, hear such application and pass, within a period of three months from the date of receipt of such application, such order in relation thereto as it deems fit: Provided that where any such authority considers it necessary or expedient so to do, it may, for reasons to be recorded in writing, extend such period by such further period as it may think fit: Provided further that no proceedings before any such authority shall lapse merely on the ground that any period specified in this sub-section had expired without such proceedings being completed. COMMENTS (i) Violation of the provisions of section 33 of the Act entitles the workman to file a complaint under section 33A thereof and makes the employer liable to be punished. It, however, does not automatically entitle the employee to claim re-instatement; Kimti Lal v. State of Haryana, 1994 LLR 212 (P&H). (ii) Where there are more than one unions in operation, every union will have to be given the representation; Maharashtra State Road Transport Corporation v. The Conciliation Officer, 1994 LLR 196 (Bom). (iii) If approval is not granted the order of dismissal or discharge shall not be operative and the employee concerned shall be deemed to be in service; G.K. Sengupta v. Hindustan Construction Co. Ltd., 1994 LLR 550 (Bom). (iv) Permission should be refused if the Tribunal is satisfied that the management's action is not bona fide or that the principles of natural justice have been violated or that the material on the basis of which the management came to a certain conclusion would not justify any reasonable person in coming to such a conclusion; G.K. Sengupta v. Hindustan Construction Co. Ltd., 1994 LLR 550 (Bom).

33A. Special provision for adjudication as to whether conditions of service, etc., changed during pendency of proceeding. Where an employer contravenes the provisions of section 33 during the pendency of proceedings before a conciliation officer, Board, an arbitrator, Labour Court, Tribunal or National Tribunal any employee aggrieved by such contravention, may make a complaint in writing, in the prescribed manner, (a) to such conciliation officer or Board, and the conciliation officer or Board shall take such complaint into account in mediating in, and promoting the settlement of, such industrial dispute; and (b) to such arbitrator, Labour Court, Tribunal or National Tribunal and on receipt of such complaint, the arbitrator, Labour Court, Tribunal or National Tribunal, as the case may be, shall adjudicate upon the complaint as if it were a dispute referred to or pending before it, in accordance with the provisions of this Act and shall submit his or its award to the appropriate Government and the provisions of this Act shall apply accordingly. COMMENTS Conditions laid down in section 33A are preliminary and collateral upon which jurisdiction of the Industrial Tribunal depends; Management of Dainik Naveen Duniya v. Presiding Officer, Labour Court, (1991) 63 FLR 9 (MP).

33B. Power to transfer certain proceedings. (1) The appropriate Government may, by order in writing and for reasons to be stated therein, withdraw any proceeding under this Act pending before a Labour Court, Tribunal or National Tribunal and transfer the same to another Labour Court, Tribunal or National Tribunal, as the case may be, for the disposal of the proceeding and the Labour Court, Tribunal or National Tribunal to which the proceeding is so transferred may, subject to special directions in the order of transfer, proceed either de novo or from the stage at which it was so transferred: Provided that where a proceeding under section 33 or section 33A is pending before a Tribunal or National Tribunal, the proceeding may also be transferred to a Labour Court. (2) Without prejudice to the provisions of sub-section (1), any Tribunal or National Tribunal, if so authorised by the appropriate Government, may transfer any proceeding under section 33 or section 33A pending before it to any one of the Labour Courts specified for the disposal of such proceedings by the appropriate Government by notification in the Official Gazette and the Labour Court to which the proceeding is so transferred shall dispose of the same. COMMENTS The Labour Court has no jurisdiction suo motu to transfer the proceedings to any other court; Bennett Coleman & Co. Ltd. v. State of Punjab, (1992) 64 FLR 449 (P&H).

33C. Recovery of money due from an employer. (1) Where any money is due to a workman from an employer under a settlement or an award or under the provisions of Chapter VA or Chapter VB the workman himself or any other person authorised by him in writing in this behalf, or, in the case of the death of the workman, his assignee or heirs may, without prejudice to any other mode of recovery,

make an application to the appropriate Government for the recovery of the money due to him, and if the appropriate Government is satisfied that any money is so due, it shall issue certificate for that amount to the Collector who shall proceed to recover the same in the same manner as an arrear of land revenue : Provided that every such application shall be made within one year from the date on which the money became due to the workman 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. (2) Where any workman is entitled to receive from the employer any money or any benefit which is capable of being computed in terms of money and if any question arises as to the amount of money due or as to the amount at which such benefit should be computed, then the question may, subject to any rules that may be made under this Act, be decided by such Labour Court as may be specified in this behalf by the appropriate Government within a period not exceeding three months. Provided that where the presiding officer of a Labour Court considers it necessary or expedient so to do, he may, for reasons to be recorded in writing, extend such period by such further period as he may think fit. (3) For the purposes of computing the money value of a benefit, the Labour Court may, if it so thinks fit, appoint a Commissioner who shall, after taking such evidence as may be necessary, submit a report to the Labour Court and the Labour Court shall determine the amount after considering the report of the Commissioner and other circumstances of the case. (4) The decision of the Labour Court shall be forwarded by it to the appropriate Government and any amount found due by the Labour Court may be recovered in the manner provided for in sub-section (1). (5) Where workmen employed under the same employer are entitled to receive from him any money or any benefit capable of being computed in terms of money, then, subject to such rules as may be made in this behalf, a single application for the recovery of the amount due may be made on behalf of or in respect of any number of such workmen. Explanation.In this section "Labour Court" includes any court constituted under any law relating to investigation and settlement of industrial disputes in force in any State. COMMENTS (i) The cause of action created in favour of workman under section 33C (2) of the Act should in normal circumstances survive to the heirs; Rameshwar Manjhi (deceased) through his son Lakhiram Manjhi v. The Management of Sungramgarh Colliery, 1994 LLR 241 (SC). (ii) The proceedings under section 33C (2) are in the nature of execution proceedings and once it is shown that the relationship of master and servant has come to an end, rightly or wrongly, it is not open to the Labour Court to proceed on the basis that it still exists and commute the monetary benefits to which the workman may, in the event, entitled to; Canara Bank v. Presiding Officer, 1994 LLR 189 (P&H). (iii) Once there is an admission of the existing right of the workman by the employer in regard to the benefit which the former is entitled to and receive from the latter, section 33C (2) of the Act would come into play; M.D., Oswal Hosiery (Regd.) v. D.D. Gupta, 1994 LLR 487 (Del).

34. Cognizance of offences.

(1) No court shall take cognizance of any offence punishable under this Act or of the abetment of any such offence, save on complaint made by or under the authority of the appropriate Government. (2) No court inferior to that of a Metropolitan Magistrate or a judicial Magistrate of the first class shall try any offence punishable under this Act. COMMENTS (i) A complaint for an offence under the Industrial Disputes Act can be filed by the appropriate Government or at its instance; Tubu Enterprises Ltd. v. The Lt. Governor of Delhi, 1994 LLR 169 (Delhi) (DB) (ii) Under section 34 of the Act the complaint for an offence thereunder, except section 30, cannot be filed by a private individual under the authority of the appropriate Government; Tubu Enterprises Ltd. v. The Lt. Governor of Delhi, 1994 LLR 169 (Del) (DB)

35. Protection of persons. (1) No person refusing to take part or to continue to take part in any strike or lock-out which is illegal under this Act shall, by reason of such refusal or by reason of any action taken by him under this section, be subject to expulsion from any trade union or society, or to any fine or penalty, or to deprivation of any right or benefit to which he or his legal representatives would otherwise be entitled, or be liable to be placed in any respect, either directly or indirectly, under any disability or at any disadvantage as compared with other members of the union or society, anything to the contrary in the rules of a trade union or society notwithstanding. (2) Nothing in the rules of a trade union or society requiring the settlement of disputes in any manner shall apply to any proceeding for enforcing any right or exemption secured by this section, and in any such proceeding the Civil Court may, in lieu of ordering a person who has been expelled from membership of a trade union or society to be restored to membership, order that he be paid out of the funds of the trade union or society such sum by way of compensation or damages as that Court thyinks just. 36. Representation of parties. (1) A workman who is a party to dispute shall be entitled to be represented in any proceeding under this Act by (a) any member of the executive or other office-bearer of a registered trade union of which he is a member; (b) any member of the executive or other office-bearer of a federation of trade unions to which the trade union referred to in clause (a) is affiliated; (c) where the worker is not a member of any trade union, by any member of the executive or other office-bearer of any trade union connected with, or by any other workman employed in, the industry in which the worker is employed and authorised in such manner as may be prescribed. (2) An employer who is a party to a dispute shall be entitled to be represented in any proceeding under this Act by (a) an officer of an association of employers of which he is a member; (b) an officer of a federation of association of employers to which the association referred to in clause (a) is affiliated; (c) where the employer is not a member of any association of employers, by an officer of any association of employers connected with, or by any other employer engaged in, the

industry in which the employer is engaged and authorised in such manner as may be prescribed. (3) No party to a dispute shall be entitled to be represented by a legal practitioner in any conciliation proceedings under this Act or in any proceedings before a court. (4) In any proceeding before a Labour Court, Tribunal or National Tribunal, a party to a dispute may be represented by a legal practitioner with the consent of the other parties to the proceeding and with the leave of the Labour Court, Tribunal or National Tribunal, as the case may be. COMMENTS (i) To practice is not an absolute right of any lawyer; J. Subash v. Labour Court, (1992) 65 FLR 561 (Ker). (ii) Taking the vakalatnama and keeping it on record cannot be taken as implied leave of the court or Tribunal; Punjabi Ghasitaram Halwai v. Sahdeo Shivram Pawer, (1994) 68 FLR 528 (Bom). (iii) Before a Labour Court or Industrial Tribunal, workman can be represented by an Executive or office-bearer of the Trade Union while the employer can be represented by the association of employers or its executive. The management has officers like Deputy Manager (Law), Assistant Manager (Law), etc., who are qualified law graduates. The Management is competent to engage any one of them to defend their case against one of their own workmen. However, employer is justified in approaching the Federation of Chamber of Commerce to contest a case of a workman of its own corporation; R.M. Duraiswany v. Labour Courts, Salem, 1998 LLR 478 (16). 36. Representation of parties. (1) A workman who is a party to dispute shall be entitled to be represented in any proceeding under this Act by (a) any member of the executive or other office-bearer of a registered trade union of which he is a member; (b) any member of the executive or other office-bearer of a federation of trade unions to which the trade union referred to in clause (a) is affiliated; (c) where the worker is not a member of any trade union, by any member of the executive or other office-bearer of any trade union connected with, or by any other workman employed in, the industry in which the worker is employed and authorised in such manner as may be prescribed. (2) An employer who is a party to a dispute shall be entitled to be represented in any proceeding under this Act by (a) an officer of an association of employers of which he is a member; (b) an officer of a federation of association of employers to which the association referred to in clause (a) is affiliated; (c) where the employer is not a member of any association of employers, by an officer of any association of employers connected with, or by any other employer engaged in, the industry in which the employer is engaged and authorised in such manner as may be prescribed. (3) No party to a dispute shall be entitled to be represented by a legal practitioner in any conciliation proceedings under this Act or in any proceedings before a court. (4) In any proceeding before a Labour Court, Tribunal or National Tribunal, a party to a dispute may be represented by a legal practitioner with the consent of the other parties to the proceeding and with the leave of the Labour Court, Tribunal or National Tribunal, as the case may be. COMMENTS (i) To practice is not an absolute right of any lawyer; J. Subash v. Labour Court, (1992) 65 FLR 561 (Ker).

(ii) Taking the vakalatnama and keeping it on record cannot be taken as implied leave of the court or Tribunal; Punjabi Ghasitaram Halwai v. Sahdeo Shivram Pawer, (1994) 68 FLR 528 (Bom). (iii) Before a Labour Court or Industrial Tribunal, workman can be represented by an Executive or office-bearer of the Trade Union while the employer can be represented by the association of employers or its executive. The management has officers like Deputy Manager (Law), Assistant Manager (Law), etc., who are qualified law graduates. The Management is competent to engage any one of them to defend their case against one of their own workmen. However, employer is justified in approaching the Federation of Chamber of Commerce to contest a case of a workman of its own corporation; R.M. Duraiswany v. Labour Courts, Salem, 1998 LLR 478 (16). 36A. Power to remove difficulties. (1) If, in the opinion of the appropriate Government, any difficulty or doubt arises as to the interpretation of any provision of an award or settlement, it may refer the question to such Labour Court, Tribunal or National Tribunal as it may think fit. (2) The Labour Court, Tribunal or National Tribunal to which such question is referred shall, after giving the parties an opportunity of being heard, decide such question and its decision shall be final and binding on all such parties. 36B. Power to exempt. Where the appropriate Government is satisfied in relation to any industrial establishment or undertaking or any class of industrial establishments or undertakings carried on by a department of that Government that adequate provisions exist for the investigation and settlement of industrial disputes in respect of workmen employed in such establishment or undertaking or class of establishments or undertakings, it may, by notification in the Official Gazette, exempt, conditionally or unconditionally such establishment or undertaking or class of establishments or undertakings from all or any of the provisions of this Act. 37. Protection of action taken under the Act. No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder. 38. Power to make rules. (1) The appropriate Government may, subject to the condition of previous publication, make rules for the purpose of giving effect to the provisions 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) the powers and procedure of conciliation officers, Boards, Courts, Labour Courts, Tribunals and National Tribunals including rules as to thesummoning of witnesses, the production of documents relevant to the subject-matter of an inquiry or investigation, the number of members necessary to form a quorum and the manner of submission of reports and awards; (aa) the form of arbitration agreement, the manner in which it may be signed by the parties the manner in which a notification may be issued under sub-section (3A) of

section 10A, the powers of the arbitrator named in the arbitration agreement and the procedure to be followed by him; (aaa) the appointment of assessors in proceedings under this Act; (b) the constitution and functions of and the filling of vacancies in Works Committees, and the procedure to be followed by such Committees in the discharge of their duties; (c) the allowances admissible to members of court and Boards and presiding officers of Labour Courts, Tribunals and National Tribunals and to assessors and witnesses; (d) the ministerial establishment which may be allotted to a court, Board, Labour Court, Tribunal or National Tribunal and the salaries and allowances payable to members of such establishment; (e) the manner in which and the persons by and to whom notice of strike or lock-out may be given and the manner in which such notices shall be communicated; (f) the conditions subject to which parties may be represented by legal practitioners in proceedings under this Act before a court, Labour Court, Tribunal or National Tribunal; (g) any other matter which is to be or may be prescribed. (3) Rules made under this section may provide that a contravention thereof shall be punishable with fine not exceeding fifty rupees. (4) All rules made under this section shall, as soon as possible after they are made, be laid before the State Legislature or, where the appropriate Government is the Central Government, before both Houses of Parliament. (5) 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 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. 38. Power to make rules. (1) The appropriate Government may, subject to the condition of previous publication, make rules for the purpose of giving effect to the provisions 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) the powers and procedure of conciliation officers, Boards, Courts, Labour Courts, Tribunals and National Tribunals including rules as to thesummoning of witnesses, the production of documents relevant to the subject-matter of an inquiry or investigation, the number of members necessary to form a quorum and the manner of submission of reports and awards; (aa) the form of arbitration agreement, the manner in which it may be signed by the parties the manner in which a notification may be issued under sub-section (3A) of section 10A, the powers of the arbitrator named in the arbitration agreement and the procedure to be followed by him; (aaa) the appointment of assessors in proceedings under this Act; (b) the constitution and functions of and the filling of vacancies in Works Committees, and the procedure to be followed by such Committees in the discharge of their duties; (c) the allowances admissible to members of court and Boards and presiding officers of Labour Courts, Tribunals and National Tribunals and to assessors and witnesses;

(d) the ministerial establishment which may be allotted to a court, Board, Labour Court, Tribunal or National Tribunal and the salaries and allowances payable to members of such establishment; (e) the manner in which and the persons by and to whom notice of strike or lock-out may be given and the manner in which such notices shall be communicated; (f) the conditions subject to which parties may be represented by legal practitioners in proceedings under this Act before a court, Labour Court, Tribunal or National Tribunal; (g) any other matter which is to be or may be prescribed. (3) Rules made under this section may provide that a contravention thereof shall be punishable with fine not exceeding fifty rupees. (4) All rules made under this section shall, as soon as possible after they are made, be laid before the State Legislature or, where the appropriate Government is the Central Government, before both Houses of Parliament. (5) 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 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. 40. Power to amend Schedules. (1) The appropriate Government may, if it is of opinion that it is expedient or necessary in the public interest so to do, by notification in the Official Gazette, add to the First Schedule any industry, and on any such notification being issued, the First Schedule shall be deemed to be amended accordingly. (2) The Central Government may, by notification in the Official Gazette, add to or alter or amend the Second Schedule or the Third Schedule and on any such notification being issued, the Second Schedule or the Third Schedule, as the case may be, shall be deemed to be amended accordingly. (3) Every such notification shall, as soon as possible after it is issued, be laid before the Legislature of the State, if the notification has been issued by a State Government, or before Parliament, if the notification has been issued by the Central Government. THE FIRST SCHEDULE See Section 2(n)(vi) Industries which may be declared to be Public Utility Services under sub-clause (vi) of clause (n) of section 2 1. Transport (other than railways) for the carriage of passengers or goods, by land or water; 2. Banking; 3. Cement; 4. Coal; 5. Cotton textiles; 6. Food stuffs; 7. Iron and Steel; 8. Defence establishments;

9. Service in hospitals and dispensaries; 10. Fire Brigade Service; 11. India Government Mints; 12. India Security Press; 13. Copper Mining; 14. Lead Mining; 15. Zinc Mining; 16. Iron Ore Mining; 17. Service in any oilfield; 19. Service in the Uranium Industry; 20 Pyrites Mining; 21. Security Paper Mill, Hoshangabad; 22. Services in the Bank Note Press, Dewas; 23. Phosphorite Mining; 24. Magnesite Mining; 1 25. Currency Note Press; 1 26. Manufacture or production of mineral oil (crude oil), motor and aviation spirit, diesel oil, kerosene oil, fuel oil, diverse hydrocarbon oils and their blends including synthetic fuels, lubricating oils and the like; 1 27. Service in the International Airports Authority of India. 1 28. Industrial establishments manufacturing or producing Nuclear Fuel and components, Heavy Water and Allied Chemicals and Atomic Energy.

THE SECOND SCHEDULE (See Section 7) Matters within the Jurisdiction of Labour Courts 1. The propriety or legality of an order passed by an employer under the standing orders; 2. The application and interpretation of standing orders; 3. Discharge or dismissal of workmen including re-instatement of, or grant of relief to, workmen wrongfully dismissed; 4. Withdrawal of any customary concession or privilege; 5. Illegality or otherwise of a strike or lock-out; and 6. All matters other than those specified in the Third Schedule.

THE THIRD SCHEDULE (See Section 7A) Matters within the Jurisdiction of Industrial Tribunals 1. Wages, including the period and mode of payment; 2. Compensatory and other allowances; 3. Hours of work and rest intervals; 4. Leave with wages and holidays; 5. Bonus, profit sharing, provident fund and gratuity; 6. Shift working otherwise than in accordance with standing orders; 7. Classification by grades; 8. Rules of discipline; 9. Rationalisation; 10. Retrenchment of workmen and closure of establishment; and

11. Any other matter that may be prescribed.

THE FOURTH SCHEDULE (See Section 9A) Conditions of Service for change of which Notice is to be given 1. Wages, including the period and mode of payment; 2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time being in force; 3. Compensatory and other allowances; 4. Hours of work and rest intervals; 5. Leave with wages and holidays; 6. Starting alteration or discontinuance of shift working otherwise than in accordance with standing orders; 7. Classification by grades; 8. Withdrawal of any customary concession or privilege or change in usage; 9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders; 10. Rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of workmen; 11. Any increases or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift, not occasioned by circumstances over which the employer has no control.

THE FIFTH SCHEDULE See Section 2(ra) Unfair Labour Practices I.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 other 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 organisation, with a view to undermining the efforts of the trade union organisation. 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 of several trade unions attempting to organise his workmen or to its members, where such a trade union is not a recognised trade union. 3. To establish employer sponsored trade unions of workmen. 4. To encourage or discourage membership in any trade union by discriminating against any workman, that is to say:

(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 is 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 to 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. 5. To discharge or dismiss workmen (a) by way of victimisation; (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 on 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 record or service of the workman, thereby leading to a disproportionate punishment. 6. 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. 7. To transfer a workman mala fide from one place to another, under the guise of following management policy. 8. 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. 9. To show favouritism or partiality to one set of workers regardless of merit. 10. To employ workmen as "badlis", 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. 11. 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. 12. To recruit workmen during a strike which is not an illegal strike. 13. Failure to implement award, settlement or agreement. 14. To indulge in acts of force or violence. 15. To refuse to bargain collectively, in good faith with the recognised trade unions. 16. Proposing or continuing a lock-out deemed to be illegal under this Act. II.On the part of workmen and 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-organisation or to join a trade union or refrain from joining any trade union, that is to say : (a) for a trade union or its members to picketing in such a manner that non-striking workmen are physically debarred from entering the work places; (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 to 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 forms of coercive actions as wilful "go slow", squatting on the work premises after working hours 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 wilful 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 to prevent him from attending work.

The Factories Act 1948:

The establishment of large scale industries was from the later half of the 19th Century and the first Factories Act was codified in 1881. The question of legislation to regulate the working conditions of the workers working in factories was raised by Major Moore, Inspector-in-Chief of the Bombay in his report in 1872-73. To overcome the weaknesses and also to keep pace with the changing conditions of the working class the Act has been amended from time to time during 1891,1911,1922 and 1934. In 1934 based on the recommendations of Royal Commission on Labour the Act of 1911, and 1922 was thoroughly overhauled and implemented. After independence, radical changes were made in the Act keeping in view the I.L.O. code of Industrial Hygiene as were practicable under Indian conditions, a bill passed by the Constituent Assembly on 28th August 1948 and revised The Factories Act 1948 came into force from 1-1-1949. the act is applicable to whole of India. 1.2. OBJECTIVES: The main purpose of the Act was i) ii) iii) iv) v) to ameliorate working conditions in factories; to take appropriate steps for the safety of workers; to protect the health and welfare of the workers; to regulate the working hours; and to provide effective machinery for the administration of the Act.

The entire factories act cannot be studied and understood in a short span of time allotted for studies of various statues concerning labour, hence, a few important sections may be analysed and looked into., viz., Health, Safety, Welfare, Working Hours, Employment of Young Persons, Annual Leave with wages. According to the interpretation given under Section 2 -

(a) (b)

adult meas a person who has completed his 18th year of age; adolescent means a person who has completed his 15 th year of age but has not completed his 18th year . Factory means as defined in Section 2(m) of the Act. i.e., a premises wherein 10 or more persons are engaged if power is used, or 20 or more persons are engaged if power is not used, in a manufacturing process. For purpose of computing the number of workers, all the workers in different groups and relays in a day shall be taken into account. This does not include a Mines covered under section 35 of the Mines Act 1952, or Armed Forced of the Union, Railways running shed or a hotel, restaurant or eating place. Manufacturing process, includes even repair, finishing, oiling or cleaning process with a view to its use, sale, transport, delivery or disposal.

WHAT IS A COMPANY? A company is a business entity registered under the Companies Act 1956. It has a legal personality i.e. it has rights to own properties, can sue or be sued. It usually has the words 'Pvt. Ltd' or 'Ltd' as part of its name. As in the case of Trade Union 7 members can form a public limited company and 3 members can form a private limited company under the said Act by filing necessary Memorandum of Association and Articles of Association. Worker means a person employed directly or by or though any agency (including a contractor) with or without the knowledge of the principal employer (Section 2(l)). But, this does not include any member of the Armed Forces of the Union. 2.0. LABOUR LEGISLATION REGARDING WORKING CONDITIONS: Healthy and safe working conditions are important both for the worker and the employer. A healthy worker is an asset to the employer and the safe working condition ensures productivity, since accidents cause disruption in the manufacturing activity. 2.1. HEALTH PROVISIONS: Section 11 to 20 under Chapter III of The Factories Act 1948, contain these provisions:Sec. 11. Cleanines (1) Every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance, and in particular :(a) acumulation of dirt and refuse shall be removed daily by sweeping or by any other effective method from the floors and benches of workrooms and from staircases and passages and disposed of in a suitable manner; (b) the floor of every workroom shall be cleaned at least once in every week by washing, using disinfectant where necessary, or by some other effective method; (c) where a floor is liable to become wet in the course of any manufacturing process to such extent as is capable of being drained, effective means of drainage shall be provided as maintained; (d) all inside walls and partitions, all ceilings or tops of rooms and all walls, sided and tops of passages and staircases shall -

i.

where they are 42[painted otherwise than with washable water paint] or varnished, be repainted or re-varnished at least once in every period of five years; 43 [(i-a) where they are painted with washable water paint, be repainted with at least one coat of such paint at least once in every period of six months];

where they are painted or varnished or where they have smooth impervious surfaces, be cleaned at least once in every period of fourteen months by such methods as may be prescribed; iii. in any other case, be kept whitewashed, or colourwashed, and the whitewashing or colourwashing shall be carried out at least once in every period of fourteen months; 44 [(dd) all doors and window-frames and other wooden or metallic framework and shutters shall be kept painted or varnished and the painting or varnishing shall be carried out at least once in every period of five years;] b) the dates on which the processes required by clause (d) are carried out shall be entered in the prescribed register. (2) If, in view of the nature of the operations carried on 45[in a factory or class or description of factories or any part of a factory or class or description of factories], it is not possible for the occupier to comply with all or any of the provisions od sub-section (1), the ![State] Government may by order exempt such factory or class or description of fatories 46[or part] from any of the provisions of that sub-section and specify alternative methods for keeping the factory in a clean state. Sec. 12. Disposal of wastes and effluents
47

ii.

[(1) Effective arrangements shall be made in every factory for the treatment of wastes and effluents due to the manufacturing process carried on therein, so as to render them innocuous, and for their disposal.] The ![State] Government may make rules prescribing the arrangements to be made under sub-section (1) or requiring that the arrangements made in accordance with subsection (1) shall be approved by such authority as may be prescribed. Sec. 13. Ventilation and temperature (1) Effective and suitable provisions shall be made in every factory for securing and maintaining in every workroom -

a. b. i.

(a) adequate ventilation by the circulation of fresh air, and (b) such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to health; and in particularwalls and roofs shall be of such material and so designed that such temperature shall not be exceeded but kept as low as practicable; ii. where the nature of the work carried on in the factories involves, or is likely to involve, the production of excessively high temperatures, such adequate measures as are practicable shall be taken to protect the workers therefrom, by separating the process, which produces such temperatures from the workroom, by insulating the hot parts or by other effective means.

(2) The ![State] Government may prescribe a standard of adequate ventilation and reasonable temperature for any factory or class or description of factories or parts thereof and direct that 48[proper measuring instruments, at such places and in such position as may be specified, shall be provided and such records, as may be prescribed, shall be maintained.] (3) If it appears to the Chief Inspector that excessively high temperatures in any factory can be reduced by the adoption of suitable measures, he may, without prejudice to the rules made under sub-section (2), serve on the occupier, an order in writing specifying the measures which,in his opinion,should be adopted, and requiring them to be carried out before a specified date.] Sec.14. Dust and fume In every factory in which, by reason of the manufacturing process carried on, there is given off any dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers employed therein, or any dust in substantial quantities, effective measures shall be taken to prevent its inhalation and accumalation in any workroom, and if any exhaust appliance is necessary for this purpose, it shall be applied as near as possible to the point or origin of the dust, fume or other impurity, and such point shall be enclosed so far as possible. In any factory no stationary internal combustion engine shall be operated unless the exhaust is conducted into the open air, and no other internal combustion engine shall be operated in any room unless effective measures have been taken to prevent such accumulation of fumes therefrom as are likely to be injurious to workers employed in the room. Sec. 15. Artificial humidification In respect of all factories in which the humidity of the air is artificially increased, the ! [State] Government may make rules, -

a. prescribing standards of humidification; b. regulating the methods used for artificially increasing the humidity of the air; c. directing prescribed tests for determining the humidity of the air to be correctly
carried out and recorded;

d. prescribing methods to be adopted for securing adequate ventilation and cooling

of the air in the workrooms. In any factory in which the humidity of the air is artificially increased, the water used for the purpose shall be taken from a public supply, or other source of drinking water, or shall be effectively purified before it is so used. If it appears to an Inspector that the water used in a factory for increasing humidity which is required to be effectively prified under sub-section (2) is not effectively purified he may serve on the manager of the factory an order in writing, specifying the measures which in

his opinion should be adopted, and requiring them to be carried out before specified date. Sec. 16. Overcrowding No room in any factory shall be overcrowded to an extent injurious to the health of the workers employed therein. Without prejudice to the generality of sub-section (1), there shall be in every workroom of a factory in existence of the date of the commencement of this Act at least 9.9 cubic metres and of a factory built after the commencement of this Ac t at least 14.2 cubic metres of space for every worker employed therein, and for the purposes of this subsection no account shall be taken of any space which is more than 4.2 metres above the level of the floor of the room. If the Chief Inspector by order in writing so requires, there shall be posted in each workroom of a factory a notice specifying the maximum number of workers who may, in compliance with the provisions of this section, be employed in the room. The Chief Inspector may, by order in writing exempt, subject to such conditions, if any, as he may think fit to impose, any workroom from the provisions of this section, if he is satisfied that compliance therewith in respect of the room is unnecessary in the interest of the health of the workers employed therein. Sec. 17. Lighting In every part of a factory where workers are working or passing there shall be provided and maintained sufficient and suitable lighting, natural or artificial, or both. In every factory all glazed windows and skylights used for the lighting of the work room shall be kept clean on both the inner and outer surfaces and, so far as compliance with provisions of any rules made under sub-section (3) of section 13 will allow, free from obstruction. In every factory effective provision shall, so far as is practicable, be made for the prevention of-

a. glare, either directly from a source of light or by reflection from a smooth or

polished surface;

b. the formation of shadows to such an extent as to cause eye-strain or the risk of

accident to any worker. The ![State] Government may prescribe standards of sufficient and suitable lighting for factories or for any class or description of factories or for any manufacturing process.

Sec. 18. Drinking water (1) In every factory effective arrangements shall be made to provide and maintain at a suitable points conveniently situated for all workers employed therein a sufficient supply of wholesome drinking water. (2) All such points shall be legibly marked "drinking water" in a language understood by a majority of the workers employed in the factory and no such points shall be situated within six metres of any washing place, urinal, latrine, spittoon, open drain carrying sullage or effluent or any other source of contamination] unless a shorter distance is approved in writing by the Chief Inspector. (3) In every factory wherein more than two hundred and fifty workers are ordinarily employed, provisions shall be made for cooling drinking water during hot weather by effective means and for distribution thereof. (4) In respect of all factories or any class or description of factories the State Government may make rules for securing compliance with the provisions of sub-sections (1), (2) and (3) and for the examination by prescribed authorities of the supply and distribution of drinking water in factories. Sec. 19. Latrines and urinals (1) In every factory :-

a. sufficient latrine and urinal accommodation of prescribed types shall be provided b. c.

conveniently situated and accessible to workers at all times while they are at the factory; separate enclosed accommodation shall be provided for male and female workers; such accommodation shall be adequately lighted and ventilated and no latrine or urinal shall, unless specially exempted in writing by the Chief Inspector, communicate with any workroom except through an intervening open space or ventilated passage; all such accommodation shall be maintained in a clean and sanitary conditions at all times; sweepers shall be employed whose primary duty it would be to keep clean latrines, urinals and washing places.

d. e.

(2) In every factory wherin more than two hundred and fifty workers are ordinarily employed-

a. all latrines and urinal accommodation shall be of prescribed sanitary types; b. the floors and internal walls, up to a height of ninety centimetres, of the
latrines and urinals and the sanitary blocks shall be laid in glazed tiles or otherwise finished to provide a smooth polished impervious surface; c. without prejudice to the provisions of clause (d) and (e) of sub-section(1), the floors, portions of the walls and blocks so laid or finished and the sanitary pans of

latrines and urinals shall be thoroughly washed and cleaned at least once in every seven days with suitable detergents or disinfectants or with both. (3) The ![State] Government may prescribe the number of latrines and urinals to be provided in any factory in proportion to the number of male and female workers ordinarily employed therein, and provide for such further matter in respect of sanitation in factories, including the obligation of workers in this regard, as it considers necessary in the interest of the health of the workers employed therein. Sec. 20. Spittoons (1) In every factory there shall be provided a sufficient number of spittoons in convenient places and they shall be maintained in a clean and hygienic condition. (2) The State Government may make rules prescribing the type and numbers of spittoons to be provided and their location in any factory and provide for such matters relating to their maintenance in a clean and hygienic condition. (3) No person shall spit within the premises of a factory except in the spittoons provided for the purpose and a notice containing this provision and the penalty for its violation shall be prominently displayed at suitable places in the premises. (4) Whoever spits in contravention of sub-section(3) shall be punished with fine not exceeding five rupees. 2.1. SAFETY: Section 21 to 41H of Chapter IV of The Factories Act 1948, contain these provisions:Sec. 21. Fencing of Machinery (1) In every factory the following, namely :every moving part of a prime-mover and every flywheel connected to a primemover, whether the prime-mover or flywheel is in the engine- house or not; ii. the headrace and tailrace of every water-wheel and water- turbine; iii. any part of a stock bar which projects beyond the head stock of a lathe; and iv. unless they are in such position or of such construction as to be safe to every person employed in the factory as they would be if they were securely fenced, the following, namely:a. every part of an electric generator, a motor or rotary convertor; b. every part of transmission machinery; and c. every dangerous part of any other machinery; shall be securely fenced by safeguards of a substantial construction which 52 [shall be constantly maintained and kept in position] while the parts of machinery they are fencing are in motion or in use:

i.

Provided that for the purpose of determining whether any part of machinery is in such position or is of such construction as to be safe as aforesaid, account shall not be taken of any occasion when (i) it is necessary to make an examination of any part of the machinery aforesaid while it is in motion or, as a result of such examination to carry out lubrication or other adjusting operation while the machinery is in motion, being an examination or operation which it is necessary to be carried out while that part of the machinery is in motion, or (ii) in the case of any part of a transmission machinery used in such process as may be prescribed (being a process of a continuous nature the carrying on of which shall be or is likely to be substantially interfered with by the stoppage of that part of the machinery), it is necessary to make an examination of such part of machinery while it is in motion or, as a result of such examination, to carry out any mounting or shipping of bells or lubrication, or other adjusting operation while the machinery is still in motion, and such examination or operation is made or carried out in accordance with the provisions of sub-sections (1) of section 22. (2) The [State] Government may by rules prescribe such further precautions as it may consider necessary in respect of any particular machinery or part thereof or exempt, subject to such condition as may be prescribed, for securing the safety of the workers, any particular machinery or part thereof from the provisions of this section. Sec. 22. Work on or near machinery in motion (1) Where in any factory it becomes necessary to examine any part of machinery referred to in section 21, while the machinery is in motion, or, as a result of such examination, to carry out(a) in a case referred to in clause (i) of the proviso to sub-section (1) of section 21, lubrication or other adjusting operation; or (b) in a case referred to in clause (ii) of the proviso aforesaid, any mounting or shipping of belts or lubrication or other adjusting operation, while the machinery is in motion, such examination or operation shall be made or carried out only by a specially trained adult male worker wearing tight fitting clothing (which shall be supplied by the occupier) whose name has been recorded in the register prescribed in this behalf and who has been furnished with a certificate of his appointment, and while he is engaged, (a) such worker shall not handle a belt at moving pulley unless -

i. ii. iii. iv. v.

the belt is not more than fifteen centimeters in width; the pulley is normally for the purpose of drive and not merely a fly-wheel or balance wheel (in which case a belt is not permissible); the belt joint is either laced or flush with the belt; the belt, including the joint and the pulley rim, are in good repair; there is reasonable clearance between the pulley and any fixed plant or structure;

vi. vii.

secure foothold and, where necessary, secure handhold, are provided for the operator; and any ladder in use for carrying out any examination or operation aforesaid is securely fixed or lashed or is firmly held by a second person;]

(b) without prejudice to any other provision of this Act relating to the fencing of machinery, every set screw, bolt and key on any revolving shaft, spindle, wheel or pinion, and all spur, worm and other toothed or friction gearing in motion with which such worker would otherwise be liable to come into contract, shall be securely fenced to prevent such contact. (2)No woman or young person shall be allowed to clean, lubricate or adjust any part of a prime-mover or of any transmission machinery while prime-mover or transmission machinery is in motion, or to clean, lubricate or adjust any part of any machine if the cleaning, lubrication or adjustment thereof would expose the woman or young person to risk injury from any moving part either of that machine or of any adjacent machinery. (3) The ![State] Government may, by notification in the Official Gazette prohibit, in any specified factory or class or description of factories, the cleaning lubricating or adjusting by any person of specified parts of machinery when those parts are in motion. Sec. 23. Employed of young persons on dangerous machines (1) No young person [shall be required or allowed to work] at any machine to which this section applies, unless he has been fully instructed as to the dangers arising in connection with the machine and the precautions to be observed, and-

a. has received sufficient training in work at the machine, or b. is under adequate supervision by a person who has a thorough knowledge and
experience of the machine (2) Sub-section (1) shall apply to such machines as may be prescribed by the State Government, being machines which in its opinion are of such a dangerous character that young persons ought not to work at them unless the forgoing requirements are complied with. Sec. 24. Striking gear and devices for cutting off power (1) In every factory-

a. suitable striking gear or other efficient mechanical appliance shall be provided

and maintained and used to move driving belts to and from fast and loose pulleys which form part of the transmission machinery, and such gear or appliances shall be so constructed, placed and maintained as to prevent the belt from creeping back on to the fast pulley; b. driving belts when not in use shall not be allowed to rest or ride upon shafting in motion

(2) In every factory suitable devices for cutting off power in emergencies shall be provided and maintained in every workroom : Provided that in respect of factories in operation before the commencement of this Act, the provisions of this sub-section shall apply only to workrooms in which electricity is used as power. (3) When a device, which can advertantly shift from "off" to "on" position, is provided in a factory to cut off power, arrangements shall be provided for locking the device in safe position to prevent accidental starting of the transmission machinery or other machines to which the device is fitted. Sec. 25. Self-acting machines No traversing part of a self-acting machine in any factory and no material carried there-on shall, if the space over which it runs is a space over which any person is liable to pass, whether in the course of his employment or otherwise, be allowed to run on its outward or inward traverse within a distance of 58[forty-five centimeters] from any fixed structure which is not part of the machine: Provided that the Chief Inspector may permit the continued use of a machine installed before the commencement of this Act which does not comply with the requirements of this section on such conditions for ensuring safety as he may think fit to impose. Sec. 26. Casing of new machinery (1) In all machinery driven by power and installed in any factory after the commencement of this Act, :(a) every set screw, bolt or key on any revolving shaft, spindle, wheel or pinion shall be so sunk, encased or otherwise effectively guarded as to prevent danger; (b) all spur, worm and other toothed or friction gearing which does not require frequent adjustment while in motion shall be completely encased, unless it is so situated as to be as safe as it would be if it were completely encased. (2) Whoever sells or lets on hire or, agent of a seller or hirer, causes or procures to be sold or let on hire, for use in a factory any machinery driven by power which does not comply with the provisions of [sub-section (1) or any rules made under sub- section (3)], shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees or with both. (3) The State Government may make rules specifying further safeguards to be provided in respect of any dangerous part of any particular machine or class or description of machines.]

Sec. 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: Provided that if the feed-end of a cotton-opener i s in a room separated from the delivery end by a partition extending to the roof or to such height as the Inspector may in any particular case specify in writing, women and children may be employed on the side of the partition where the feed-end is situated. Sec. 28. Hoists and lifts (1) In every factory :(a) every hoist shall be :-

i. ii.

of good mechanical construction sound material and adequate strength; properly maintained, and shall be thoroughly examined by a competent person at least once in every period of six months, and a register shall be kept containing the prescribed particulars of every such examination;

(b) every hoist-way and lift-way shall be sufficiently protected by an enclosure fitted with gates, and the hoist or lift and every such enclosure shall be so constructed as to prevent any person or thing from being trapped between any part of the hoist or lift and any fixed structure or moving part; (c) the maximum safe working load shall be plainly marked on every hoist or lift, and no load greater than such load shall be carried thereon; (d) the cage of every hoist or lift used for carrying persons shall be fitted with a gate on each side from which access is afforded to a landing; (e) every gate referred to in clause (b) and clause (d) shall be fitted with inter-locking or other efficient device to secure that the gate cannot be opened except when the cage is at the landing and that the cage cannot be moved unless the gate is closed. (2) The following additional requirements shall apply to hoists and lifts used for carrying persons and installed or reconstructed in a factory after the commencement of this Act, namely:-

a. where the cage is supported by rope or chain, there shall be at least two ropes or
chains separately connected with the cage and balance weight, and each rope or chain with its attachments shall be capable of carrying the whole weight of the cage together with its maximum load; b. efficient devices shall be provided and maintained capable of supporting the cage together with its maximum load in the event of breakage of the ropes, chains and attachments; c. an efficient automatic device shall be provided and maintained to prevent the cage from over-running.

(3) The Chief Inspector may permit the continued use of a hoist or lift installed in a factory before the commencement of this Act which does not fully comply with the provisions of sub-section (1) upon such conditions for ensuring safety as he may think fit to impose. (4) The ![State] Government may, if in respect of any class or description of hoist or lift, it is of opinion that it would be unreasonable to enforce any require- ments of sub-sections (1) and (2), by order direct that such requirement shall not apply to such class or description of hoist or lift. Explanation: For the purposes o f this section, no lifting machine or appliance shall be deemed to be a hoist or lift unless it has a platform or cage, the direction or movement of which is restricted by a guide or guides.] Sec. 29. Lifting machines, chains, ropes and lifting tackles (1) In any factory the following provisions shall be complied with in respect of every lifting machine (other than a hoist and lift) and every chain, rope and lifting tackle for the purpose of raising or lowering persons, goods or materials :(a) all parts, including the working gear, whether fixed or movable, of every lifting machine and every chain, rope or lifting tackle shall be -

i. ii. iii.

of good construction, sound material and adequate strength and free from defects; properly maintained; and thoroughly examined by a competent person at least once in every period of twelve months, or at such intervals as the Chief Inspector may specify in writing, and a register shall be kept containing the prescribed particulars of every such examination;

(b) no lifting machine and no chain, rope or lifting tackle shall, except for the purpose of test, be loaded beyond the safe working load which shall be plainly marked thereon together with an identification mark and duly entered in the prescribed register; and where this is not practicable, a table showing the safe working loads of every kind and size of lifting machine or chain, rope or lifting tackle in use shall be displayed in prominent position on the premises; (c) while any person is employed or working on or near the wheel track of a traveling crane in any place where he would be liable to be struck by the crane, effective measures shall be taken to ensure that the crane does not approach within [six meters] of that place. (2) The State Government may make rules in respect of any lifting machine or any chain, rope or lifting tackle used in factories -

a. prescribing further requirements to be complied with in addition to those set out in

this section;

b. providing for exemption from compliance with all or any of the requirements of
this section, where in its opinion, such compliance is unnecessary or impracticable. (3) For the purposes of this section a lifting machine or a chain, rope or lifting tackle shall be deemed to have been thoroughly examined if a visual examination supplemented, if necessary, by other means and by the dismantling of parts of the gear, has been carried out as carefully as the conditions permit in order to arrive at a reliable conclusion as to the safety of the parts examined. Explanation: In this section, -

a. "lifting machine" means a crane, crab, winch, teagle, pulley block, gin wheel, b.
transporter or runway; "lifting tackle" means any chain sling, rope sling, hook, shackle, swivel, coupling, socket, clamp, tray or similar appliance, whether fixed or movable, used in connection with the raising or lowering of persons, or loads by use of lifting machines.]

Sec. 30. Revolving machinery (1) In every factory in which the process of grinding is carried on there shall be permanently affixed to or placed near each machine in use a notice indicating the maximum safe working peripheral speed of every grindstone or abrasive wheel, the speed of the shaft or spindle upon which the wheel is mounted, and the diameter of the pulley upon such shaft or spindle necessary to secure such safe working peripheral speed. (2) The speeds indicated in notices under sub-section (1) shall not be exceeded. (3) Effective measure shall be taken in every factory to ensure that the safe working peripheral speed of every revolving vessel, cage, basket, fly wheel, pulley, disc or similar appliance driven by power is not exceeded. Sec. 31. Pressure plant :(1) If in any factory, any plant or machinery or any part thereof is operated at a pressure above atmospheric pressure, effective measures shall be taken to ensure that the safe working pressure of such plant or machinery or part is not exceeded. (2) The [State] Government may make rules providing for the examination and testing of any plant or machinery such as is referred to in sub-section (i) and prescribing such other safety measures in relation thereto as may in its opinion be necessary in any factory or class or description of factories. (3) The State Government may, by rules, exempt, subject to such conditions as may be specified therein, any part of any plant or machinery referred to in sub-section (1) from the provisions of this section.

Sec. 32. Floors, stairs and means of access In every factory :(a) all floors, steps, stairs, passages and gangways shall be of sound construction, and properly maintained 68[and shall be kept free from obstructions and substances likely to cause persons to slip] and where it is necessary to ensure safety, steps, stairs, passages and gangways shall be provided with substantial handrails; (b) there shall, so far as is reasonable practicable, be provided, and maintained safe means of access to every at which any person is at any time required to work;
69

[(c) when any person has to work at a height from where he is likely to fall, provision shall be made, so far as is reasonably practicable, by fencing or otherwise, to ensure the safety of the person so working.] Sec. 33. Pits, sumps, openings in floors, etc. (1) In every factory every fixed vessel, sump, tank, pit or opening in the ground or in a floor which, by reason of its depth, situation, construction or contents, is or may be a source of danger, shall be either securely covered or securely fenced. (2) The ![State] Government may, by order in writing, exempt, subject to such conditions as may be prescribed, any factory or class or description of factories in respect of any vessel, sump, tank, pit or opening from compliance with the provisions of this section. Sec. 34. Excessive weights (1) No person shall be employed in any factory to lift, carry or move any load so heavy as to be likely to cause him injury. (2) The State Government may make rules prescribing the maximum weights which may be lifted, carried or moved by adult men, adult women, adolescents and children employed in factories or in any class or description of factories or in carrying on any specified process. Sec. 35. Protection of eyes In respect of any such manufacturing process carried on in any factory as may be prescribed, being a process which involves :-

a. risk of injury to the eye from particles or fragments thrown off in the course of the
process, or

b. risk to the eyes by reason of exposure to excessive light, the State Government
may by rules require that effective screens or suitable goggles shall be provided for the protection of persons employed on, or in the immediate vicinity of, the process

Sec. 36. Precautions against dangerous fumes, gases, etc. (1) No person shall be required or allowed to enter any chamber, tank, vat, pit, pipe, flue or other confined space in any factory in which any gas, fume vapour or dust is likely to be present to such an extent as to involve risk to persons being overcome thereby, unless it is provided with a manhole of adequate size or other effective means of egress. (2) No person shall be required or allowed to enter any confined space, as is referred to in sub-section (1), until all practicable measures have been taken to remove any gas, fume, vapour or dust, which may be present so as to bring its level within the permissible limits and to prevent any ingress of such gas, vapour or dust and unless -

a. a certificate in writing has been given by a competent person, based on a test

carried out by himself that the space is reasonably free from dangerous gas, fume, vapour or dust; or b. such person is wearing suitable breathing apparatus and a belt securely attached to a rope the free end of which is held by a person outside the confined space.] Sec. 36-A. Precautions regarding the use of portable electric light (a) no portable electric light or any other electric appliance of voltage exceeding twentyfour volts shall be permitted for use inside any chamber, tank , vat, pit, pipe, flue or other confined space 72[unless adequate safety devices are provided]; and (b) if any inflammable gas, fume or dust is likely to be present in such chamber, tank, vat, pipe, flue or other confined space, no lamp or light other than that of flame-proof construction shall be permitted to used therein]. Sec. 37. Explosive or inflammable dust, gas, etc. (1) Where in any factory any manufacturing process produces dust, gas, fume or vapour of such character and to such extent as to be likely to explode on ignition, all practicable measures shall be taken to prevent any such explosion by :-

a. effective enclosure of the plant or machinery used in the process; b. removal or prevention of the accumulation of such dust, gas, fume or vapour; c. exclusion oe effective enclosure of all possible source of ignition.
(2) Where in any factory the plant or machinery used in a process such as is referred to in sub-section (1) is not so constructed as to withstand the probable pressure which such an explosion as aforesaid would produce, all practicable measures shall be taken to restrict the spread and effects of the explosion in the plant or machinery of chokes, baffles, vents or other effective appliances. (3) Where any part or machinery in a factory contains any explosive or inflamm- able gas or vapour under pressure greater than atmospheric pressure, that part shall not be opened except in accordance with the following provisions, namely :-

a. before the fastening of any joint of any pipe connected with the part or the
fastening of the cover of any opening into the part is loosened, any flow of the gas or vapour into the part of any such pipe shall be effectively stopped by a stop-valve or other means; b. before any such fastening as aforesaid is removed, all practicable measures shall be taken to reduce the pressure of the gas or vapour in the part or pipe to a atmospheric pressure; c. where any such fastening as aforesaid has been loosened or removed effective measures shall be taken to prevent any explosive or inflammable gas or vapour from entering the part or pipe until the fastening has been secured, or, as the case may be, securely replaced : provided that the provisions of this sub-section shall not apply in the case of plant or machinery installed in the open air. (4) No plant, tank or vessel which contains or has contained any explosive or inflammable substance shall be subjected in any factory to any welding, brazing, soldering or cutting operation which involves the application of heat unless adequate measures have first been taken to remove such substance and any fumes arising therefrom or to render such substance and fumes non- explosive or non-inflammable, and no such substance shall be allowed to enter such plant, tank or vessel after any such operation until the metal has cooled sufficiently to prevent any risk of igniting the substance. (5) The [State] Government may by rules exempt, subject to such conditions as may be prescribed, any factory or class or description of factories from compliance with all or any of the provisions of this section. Sec. 38. Precautions in case of fire (1) In every factory, all practicable measures shall be taken to prevent outbreak of fire and its spread, both internally and externally, and to provide and maintain -

a. safe means of escape for all persons in the event of fire, and b. the necessary equipment and facilities for extinguishing fire.
(2) Effective measures shall be taken to ensure that in every factory all the workers are familiar with the means of escape in case of fire and have been adequately trained in the routine to be followed in such cases. (3) The State Government may make rules, in respect of any factory or class or description of factories, requiring the measures to be adopted to give effect to the provisions of sub-sections (1) and (2). (4) Notwithstanding anything contained in clause (a) of sub-section (1) or sub- section (2), if the Chief Inspector, having regard to the nature of the work carried on in any factory, the construction of such factory, special risk to life or safety, or any other circumstances, is of the opinion that the measures provided in the factory, whether as prescribed or not, for the purposes of clause (a) of sub-section (1) or sub-section (2), are

inadequate, he may, by order in writing, require that such additional measures as he may consider reasonable and necessary, be provided in the factory before such date as is specified in the order.] 39. Power to require specifications of defective parts or tests of stability If it appears to the Inspector that any building or part of a building or any part of the ways, machinery or plant in a factory is in such a condition that it may be dangerous to human life or safety, he may serve on [the occupier or manager or both] of the factory an order in writing requiring him before a specified date -

a. to furnish such drawings, specifications and other particulars as may be

necessary to determine whether such buildings, ways, machinery or plant can be used with safety, or b. to carry out such tests in such manner as may be specified in the order, and to inform the Inspector of the results thereof. Sec. 40. Safety of buildings and machinery (1) If it appears to the Inspector that any building or part of a building or any any part of the ways, machinery or plant in a factory is in such a condition that it is dangerous to human life or safety, he may serve on the 74[occupier or manager or both] of the factory an order in writing specifying the measures, which in his opinion should be adopted and requiring them to be carried out before a specified date. (2) If it appears to the Inspector that the use of any building or part of a building or nay part of the ways, machinery or plant in a factory involves imminent danger to human life or safety he may serve on the occupier or manager or both of the factory an order in writing prohibiting its use until it has been properly repaired or altered. Sec. 40-A. Maintenance of buildings If it appears to the Inspector that any building or part of a building in a factory is in such a state of disrepair as is likely to lead to conditions detrimental to the health and welfare of the workers, he may serve on the occupier or manager or both of the factory an order in writing specifying the measures which in his opinion should be taken and requiring the same to be carried out before such date as is specified in the order.] Sec. 40-B. Safety Officers (1) In every factory :-

i. ii.

wherein one thousand or more workers are ordinarily employed, or wherein, in the opinion of the State Government, any manufacturing process or operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease or any other hazard to health, to the person employed in the factory, the occupier shall, i f so required by the State

Government by notification in Official Gazette, employ such number of Safety Officers as may be specified in that notification.

(2) The duties, qualifications and conditions of service of Safety Officers shall be such as
may be prescribed by the State Government.] Sec. 41.Power to make rules to supplement this Chapter. The State Government may make rules requiring the provision in any factory or in any class or description of factories of such further [devices and measures] for securing safety of persons employed therein as it may deem necessary. Sec. 41. Power to make rules to supplement this Chapter. The State Government may make rules requiring the provision in any factory or in any class or description of factories of such further [devices and measures] for securing safety of persons employed therein as it may deem necessary.

CHAPTER IVA PROVISIONS RELATING TO HAZARDOUS PROCESS

[41 A. Constitution of Site Appraisal Committees (1) The State Government may, for purposes of advising it to consider applications for 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 consisting of :a. The Chief Inspector of the State who shall be its Chairman; b. a representative of the Central Board for the Prevention and Control of Water Pollution appointed by the Central Government under section 3 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974); c. a representative of the Central Board for the Prevention and Control of Air Pollution referred to in section 3 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981); d. representative of the State Board appointed under section 4 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974); e. a representative of the State Board for the Prevention and Control of Air Pollution referred to in section 5 of the Air (Prevention and Control of Pollution) Act (14 of 1981); f. a representative of the Department of Environment in the State; g. a representative of the Meteorological Department of the Government of India; h. an expert in the field of occupational health; and i. a representative of the Town Planning Department of the State Government; and not more than five other members who may be co-opted by the State Government who shall bei. a scientist having specialize knowledge of the hazardous process which will be involved in the factory, ii. a representative of the local authority within whose jurisdiction the factory is to be established, and

iii.

not more than three other persons as deemed fit by the State Government.

(2) The Site Appraisal Committee shall examine an application for the establish- ment of a factory involving hazardous process and make its recommendation to the State Government within a period of ninety days of the receipt of such application in the prescribed form. (3) Where any process relates to a factory owned or controlled by the Central Government or to a corporation or a company owned or controlled by the Central Government or to a corporation or a company owned or controlled by the Central Government, the State Government shall co-opt in the Site Appraisal Committee nominated by the Central Government as a member of that Committee. (4) The Site Appraisal Committee shall have power to call for any information from the person making an application for the establishment or expansion of a factory involving a hazardous process. (5) Where the State Government has granted approval to an application for the establishment or expansion of a factory involving a hazardous process, it shall not be necessary for an applicant to obtain a further approval from the Central Board or the State Board established under the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974) and the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981). 41 B. Compulsory disclosure of information by the occupier (1) The occupier of every factory involving a hazardous process shall disclose in the manner prescribed all information regarding dangers, including health hazards and the measures to overcome such hazards arising from the expo- sure to or handling of the materials or substances in the manufacture, transpor- tation, storage and other processes, to the workers employed in the factory, the Chief Inspector, the local authority within whose jurisdiction the factory is situated and the general public in the vicinity. (2) The occupier shall, at the time of registering the factory involving a hazardous process lay down a detailed policy with respect to the health and safety of the workers employed therin and intimate such policy to the Chief Inspector and the local authority and, thereafter, at such intervals as may be prescribed, inform the Chief Inspector and the local authority of any change made in the said policy. (3) The information furnished under sub-section (1) shall include accurate information as to the quantity, specifications and other characteristics of wastes and the manner of their disposal. (4) Every occupier shall, with the approval of the Chief Inspector, draw up an onsite emergency plan and detailed disaster control measures for his factory and make known to the workers employed therein and to the general public living in the vicinity of the factory the safety measures required to be taken in the event of an accident taking place.

(5) Every occupier of a factory shall,a. if such factory engaged in a hazardous process on the commencement of the Factories (Amendment) Act, 1987 within a period of thirty days of such commencement; and b. if such factory proposes to engage in a hazardous process at any time after such commencement, within a period of thirty days before the commencement of such process,inform the Chief Inspector of the nature and details of the process in such form and in such manner as may be prescribed. (6) Where any occupier of a factory contravenes the provisions of sub-section (5), the licence issued under section 6 to such factory shall, notwithstanding any penalty to which the occupier or f actory shall be subjected to under the provisions of this Act, be liable for cancellation. (7) The occupier of a factory involving a hazardous process shall, with the previous approval of the Chief Inspector, lay down measures for the handling, usage, transportation and storage of hazardous substances inside the factory premises and the disposal of such substances outside the factory premises and publicise them in the manner prescribed among the workers and the general public living in the vicinity. 41C. Specific responsibility of the occupier in relation to hazardous processes Every occupier of a factory involving any hazardous process shall : (a) maintain accurate up-to-date health records or, as the case may be, medical records, of the workers in the factory who are exposed to any chemical, toxic or any other harmful substances which are manufactured stored, handled or transported and such records shall be accessible to the workers subject to such conditions as may be prescribed; (b) appoint persons who posses qualifications and experience in handling hazardous substances and are competent to supervise such handling within the factury and to provide at the working place all the necessary facilities for protecting the workers in the manner prescribed : Provided that where any question arises as to the qualifications and experience of a person so appointed,the decision of the Chief Inspector shall be final; (c) provide for medical examination of every worker a. before such worker is assigned to a job, involving the handling of, or working with, a hazardous substance, and b. while continuing in such job, and after he has ceased to work in such job,at intervals not exceeding twelve months,in such manner as may be prescribed. 41D. Power of Central Governments to appoint Inquiry Committee (1) The Central Government may,in the event of the occurence of an extraordinary situation involving a factory engaged in a hazardous process,appoint an Inquiry

Committee to inquire into the standards of health and safety observed in the factory with a view to finding out the causes of any failure or neglect in the adoption of any measures or standards prescribed for the health and safety of the workers employed in the factory or the general public affected, or likely to be affected,due to such failure or neglect and for the prevention and recurrence of such extraordinary situations in future in such factory or elsewhere. 2) The Committee appointed under sub-section(1) shall consist of a Chairman and two other members and the terms of reference of the Committee and the tenure of office of its members shall be such as may be determined by the Central Government according to thre requirements of the situation. (3) The recommendation of the Committee shall be advisory in nature. 41E. Emergency standards (1) Where the Central Government is satisfied that no standards of safety have been prescribed in respect of a hazardous process or class of hazardous processes, or where the standards so prescribed are inadequate, it may direct the Director-General of Factory Advice Service and Labour Institutes or any institution specialized in matters relating to standards of safety in hazardous processes, to lay down emergency standards for enforcement of suitable standards in respect of such hazardous processes. (2) The emergency standards laid down under sub-section (1) shall, until they are incorporated in the rules made under this Act, be enforceable and have the same effect as if they had been incorporated in the rules made under this Act. 41F. Permissible limits of exposure of chemical and toxic substances (1) The maximum permissible threshold limits of exposure of chemical and toxic substances in manufacturing processes (whether hazardous or otherwise)in any factory shall be of the value indicated in the Second Schedule. (2) The Central Government may, at any time, for the purpose of giving effect to any scientific proof obtained from specialized institutions or experts in the field, by notification in the Official Gazette, make suitable changes in the said Schedule. 41G. Workers participation in safety management (1) The occupier shall, in every factory where a hazardous process takes place,or where hazardous substances are used or handled,set up a Safety Committee consisting of equal number of representatives of workers and management to promote cooperation between the workers and the management in maintain- ing proper safety health at work and to review periodically the measures taken in that behalf : Provided that the State Government may, by order in writing and for reasons to be recorded, exempt the occupier of any factory or class of factories from setting up such Committee.

(2) The composition of the Safety Committee, the tenure of office of its members and their rights and duties shall be such as may be prescribed. 41H. Right of workers to warn about imminent danger (1) Where the workers employed in any factory engaged in a hazardous process have reasonable apprehension that there is a likelihood of imminent danger to their lives or health due to any accident, they may, bring the same to the notice of the occupier, agent, manager or any other person who is incharge of the factory or the process concerned directly or through their representatives in the Safety Committee and simultaneously bring the same to the notice of the Inspector. (2) It shall be the duty of such occupier, agent, manager or the person incharge of the factory or process to take immediate remedial action if he is satisfied about the existence of such imminent danger and send a report forthwith of the action taken to the nearest Inspector. (3) If the occupier,agent,manager or the person incharge referred to in sub-section (2) is not satisfied about the existence of any imminent danger as apprehended by the workers, he shall, nevertheless, refer the matter forthwith to the nearest Inspector whose decision on the question of the existence of such imminent danger shall be final.]

CHAPTER V WELFARE
42. Washing facilities (1) In every factory a. adequate and suitable facilities for washing shall be provided and maintained for use of the workers therein; b. separate and adequately screened facilities shall be provided for the use of male and female workers; c. such facilities shall be conveniently accessible and shall be kept clean. (2) The ![State] Government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing. 43. Facilities for storing and drying clothing The ![State] Government may, in respect of any factories or class or description of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during working hours and for the drying of wet clothing.

44. Facilities for sitting (1) In every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position, in order that they may take advantage of any opportunities for rest which may occur in the course of their work. (2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in a particular manufacturing process or working in a particular room are able to do their work efficiently in a sitting position, he may, by order in writing require the occupier of the factory to provide before a specified date such seating arrangements as may be practicable for all workers so engaged or working. (3) The ![State]Government may, by notification in the Official Gazette, declare that the provisions of sub-section (1) shall not apply to any specified factory or class or description of factories or to any specified manufacturing process. 45. First-aid appliances (1) There shall in every factory be provided and maintained so as to be readily accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed 79[at any one time] in the factory.
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[(2) Nothing except the prescribed contents shall be kept in a first-aid box or cup-board.

(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person, 81[who holds a certificate in first-aid treatment recognized by the State Government] and who shall always be readily available during the working hours of the factory.]
82

[(4)] In every factory wherein more than five hundred workers are 83[ordinarily employed] there shall be provided and maintained an ambulance room of the prescribed size, containing the prescribed equipment 84and in the charge of such medical and nursing staff as may be prescribed 85[and those facilities shall always be made readily available during the working hours of the factory]. 46. Canteens (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers. (2) Without prejudice in the generality of the foregoing power, such rules may provide for a. the date by which such canteen shall be provided; b. the standards in respect of construction, accommodation, furniture and other equipment of the canteen;

c. the foodstuffs to be served therein and the charges which may be made therefor; d. the constitution of a managing committee for the canteens and represen- tation of the workers in the management of the canteen; 85 [(dd) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the employer;] e. the delegation to the Chief Inspector subject to such conditions as may be prescribed, of the power to make rules under clause (c). 47. Shelters, rest-rooms and lunch-rooms (1) In every factory wherein more than one hundred and fifty workers are ordinarily employed adequate and suitable shelters or rest-rooms and a suitable lunch- room, with provision for drinking water, where workers can eat meals brought by them, shall be provided and maintained for the use of the workers : Provided that any canteen maintained in accordance with the provisions of section 46 shall be regarded as part of the requirements of this sub-section : Provided further that where a lunch-room exists no worker shall eat any food in the work-room. (2) The Shelters or rest-room or lunch-rooms and ventilated and shall be maintained in a cool and clean condition. (3) The ![State] Government may a. prescribe the standards, in respect of construction, accommodation, furniture and other equipment of shelters, rest-rooms and lunch-rooms to be provided under this section; b. by notification in the Official Gazette, exempt any factory or class or description of factories from the requirements of this section. 48. Crches (1) In every factory wherein more than 86[thirty women workers] are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women. (2) Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants. (3) The State Government may make rules a. prescribing the location and the standards in respect of construction, accommodation; furniture and other equipment of rooms to be provided, under this section;

b. requiring the provision in factories to which the section applies of additional facilities for the care of children belonging to women workers, including suitable suitable provision of facilities for washing and changing their clothing; c. requiring the provision in any factory of free milk or refreshment or both for such children; d. requiring that facilities shall be given in any factory for the mothers of such children to feed them at the necessary intervals. 49. Welfare Officers (1) In every factory wherein five hundred or more workers are ordinarily employed the occupiers shall employ in the factory such number of welfare officers as may be prescribed. (2) The ![State] Government may prescribe the duties, qualifications and conditions of service of officers employed under sub-section (1). 50. Power to make rules to supplement this Chapter The ![State] Government may make rules :(a) exempting, subject to compliance with such alternative arrangements for the welfare of workers as may be prescribed, any factory or class or description of factories from compliance with any of the provisions of this Chapter; (b) requiring in any factory or class or description of factories that representatives of the workers employed in the factories shall be associated with the management of the welfare arrangements of the workers. CHAPTER VI WORKING HOURS OF ADULTS 51. Weekly hours No adult worker shall be required or allowed to work in a factory for more than fortyeight hours in any week. 52. Weekly holidays (1) No adult worker shall be required or allowed to work in a factory on first day of the week (hereinafter referred to as the said day), unless (a) he has or will have holiday for whole day on one of three days immedia- tely before or after the said day, and (b) the manager of the factory has, before said day or the substituted day under clause (a), whichever is earlier :i. delivered a notice a the office of the Inspector of his intention to require the worker to work on the said day and of the day which is to be substituted, and

ii.

displayed a notice to that effect in the factory : Provided that no substitution shall be made which will result in any worker working for more than ten days consecutively without a holiday for a whole day.

(2) Notices given under sub-section (1) may be canceled by a notice delivered at the office of the Inspector and a notice displayed in the factory not later than the day before the said day or the holiday to be cancelled, whichever is earlier. (3) Where, in accordance with the provisions of sub-section (1), any worker works on the said day and has had a holiday on one of the three days immediately before it, that said day shall, for the purpose of calculating his weekly hours of work, be included in the preceding week. 53. Compensatory holidays (1) Where, as a result of the passing of order or the making of a rule under the provisions of this Act exempting a factory or the workers therein from the provisions of section 52, a worker is deprived of any of the weekly holidays for which provision is made in sub-section (1) of that section he shall be allowed, within the month in which the holidays were due to him or within the two months immediately following that month, compensatory holidays of equal number to the holidays so lost. The ![State] Government may prescribe the manner in which the holidays for which provision is made in sub-section (1) shall be allowed. 54. Daily hours Subject to the provisions of section 51, no adult worker shall be required or allowed to work in a factory for more than nine hours in any day.
87

[Provided that subject to the previous approval of the Chief Inspector the daily maximum specified in this section may be exceeded in order to facilitate the change of shifts.] 55. Intervals for rest
88

[(1)] 89[The periods of work]of adult workers in a factory each day shall be so fixed that no period shall exceed five hours and that no worker shall work for more than five hours before he has had an interval for rest of at least half an hour.
90

[(2) The State Government or, subject to the control of the State Government, the Chief Inspector, may,by written order and for reason specified therein, exempt any factory from the provisions of sub-section(1) so however that the total number of hours worked by a worker without a interval does not exceed six.] 56. Spread-over The period of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for rest under section 55, they shall not spreadover more than ten and a half hours in any day:

Provided that the Chief Inspector may, for reasons to be specified in writing, increase the 90[spreadover up to twelve hours.] 57. Night Shifts Where a worker in a factory works on a shift which extends beyond midnight :(a) for the purposes of section 52 and 53, a holiday for a whole day shall mean in his case a period of twenty-four consecutive hours beginning when his shift ends; (b) the following day for him shall be deemed to be the period of twenty-four hours beginning when such shift ends, and the hours he has worked after midnight shall be counted in the previous day. 58. Prohibition of overlapping shifts (1) Work shall not be carried on in any factory by means of a system of shifts so arranged that more than one relay of workers is engaged in work of the same kind at the same time.
91

[(2) The State Government or subject to the control of the State Government, the Chief Inspector, may, by written order and for the reasons specified therein, exempt on such conditions as may be deemed expedient, any factory or class or description of factories or any department or section of a factory or any category or description of workers therein from the provisions of sub- section(1)] 59. Extra wages for overtime (1) Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages.
92

[(2) For the purposes of sub-section (1), "ordinary rate of wages" means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food grains and other articles, as the worker for the time being entitled to, but does not include a bonus and wages for overtime work. (3) Where any workers in a factory are paid on a piece-rate basis, the time-rate shall be deemed to be equivalent to the daily average of their full-time earnings for the days on which they actually worked on the same or identical job during the month immediately preceding the calendar months during which the overtime work was done, and such time-rates shall be deemed to be the ordinary rates of wages of those workers :

Provided that in the case of a worker who has not worked in the immediately preceding the calendar month on the same identical job, the time-rate shall be deemed to be equivalent to the daily average of the earning of the worker for the days on which he actually worked in the week in which the overtime work was done.

Explanation: For the purposes of this sub-section in computing the earnings for the days on which the worker actually worked such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food grains and other articles, as the worker is for the time being entitled to, shall be included but any bonus or wages for overtime work payable in relation to the period with reference to which the earnings are being computed shall be excluded.]
93

[(4) The cash equivalent of the advantage accruing through the concessional sale to a worker or food grains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of food grains and other articles admissible to a standard family. Explanation 1: "Standard family" means a family consisting of the worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units. Explanation 2: "Adult consumption unit" means the consumption units of a male above the age of fourteen years, and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6, respectively of one adult consumption unit. (5) The State Government may make rules prescribing a. the manner in which the cash equivalent of the advantage accruing through the concessional sale to a worker of food grains and other articles shall be computed; and b. the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section]. 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, save in such circumstances as may be prescribed. 61. Notice of periods of work for adults (1) There shall be displayed and correctly maintained in every factory in accordance with the provisions of sub-section(2) of section 108, a notice of periods of work for adults, showing clearly for every day the periods during which adult workers may be required to work. (2) The periods shown in the notice required by sub-section (1) shall be fixed beforehand in accordance with the following provisions of this section, and shall be such that workers working for those periods would not be working in contravention of any of the provisions of sections 51, 52, 54, 94[55, 56 and 58]. (3) Where all the adult workers in a factory are required to work during the same periods, the manager of the factory shall fix those periods for such workers generally.

(4) Where all the adult workers in a factory are not required to work during the same periods, the manager of the factory shall classify them into groups according to the nature of their work indicating the number of workers in each group. (5) For each group, which is not required to work on a system of shifts, the manager of the factory shall fix the periods during which the group may be required to work. (6) Where any group is required to work on system of shifts and the relays are to be subject to pre-determined periodical changes or shifts, the manager of the factory shall fix the periods during which each relay of the group may be required to work. (7) Where any group is to work on a system of shifts and the relays are to be subject to pre-determined periodical changes of shifts, the manager of the factory shall draw up a scheme of shifts, where under the period during which any relay of group may be required to work and the relay which will be working at any time of the day shall be known for any day. (8) The ![State] Government may prescribe forms of the notice required by sub-section (1) and the manner in which it shall be maintained. (9) In the case of a factory beginning work after the commencement of this Act, a copy of the notice referred to in sub-section (1) shall be sent in duplicate to the Inspector before the day on which work begun in the factory. (10) Any proposed change in the system of work in any factory which will necessitate a change in the notice referred to in sub-section(1) shall be notified to the Inspector in duplicate before the change is made, and except with the previous sanction of the Inspector, no such change shall be made until one week has elapsed since that last change. 62. Register of adult workers (1) The manager of every factory shall maintain a 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. b. c. d. e. the name of each adult worker in the factory ; the nature of his worker ; the group, if any, in which he is included; where his group works on shift, the relay to which he is allotted ; and such other particulars as may be prescribed : Provided that, if the Inspector is of opinion that any muster-roll or register maintained as a part of the routine of a factory gives in respect of any or all the workers in the factory the particulars required under this section, he may, by order in writing,direct that such muster-roll or register shall to the corresponding extent be maintained in place of, and be treated as , the register of adult workers in that factory.

[(1-A)No Adult worker shall be required or allowed to work in any factory unless his name and other particulars have been entered in the register of adult workers.]

(2) The ![State]Government may prescribe the form of the register of adult workers, the manner in which it shall be maintained and the period for which it shall be preserved. 63. Hours of work to correspond with notice under 62 section 61 and register under section

No adult worker shall be required or allowed to work in any factory otherwise than in accordance with the notice of periods of work for adults displayed in the factory and the entries made beforehand against his name in the register of adult workers of the factory.

i. ii. iii.

(report for duty ; 9 (iii) the total number of hours of work in a week including overtime, shall not exceed sixty ; 10 (iv) the total number of hours of overtime shall not exceed fifty for any one quarter.]

Explanation: "Quarter" means a period of three consecutive months beginning on the 1st January, the 1st of April, the 1st of July or the 1st of October]. (5) Rules made under this section shall remain in force for not more than 11[five years]. 65. Power to make exempting orders (1) Where the ![State] Government is satisfied that, owing to the nature of the work carried on or to other circumstances, it is reasonable to require that the periods of work of any adult worker in any factory or class or description of factories should be fixed beforehand, it may, by written order, relax or modify the provisions of section 61 in respect of such workers therein,to such extend and in such manner as it may think fit, and subject to such conditions as it may deem expedient to ensure control over periods of work. (2) The ![State] Government or, subject to the control of the State Government the Chief Inspector may, by written order, exempt on such conditions as it or he may deem expedient, any or all of the adult workers in any factory or group or class or description of factories from any or all of the provisions of sections 51, 52, 54 and 56 on the ground that the exemption is required to enable the factory or factories to deal with an exceptional press of work.
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[(3) Any exemption granted under sub-section (2) shall be subjected to the following conditions, namely : i. ii. iii. iv. the total number of hours of work in any day shall not exceed twelve ; the spreadover, inclusive of intervals for rest, shall not exceed thirteen hours in any one day ; the total number of hours of work in any week, including overtime, shall not exceed sixty ; no worker shall be allowed to work overtime, for more than seven days at a stretch and the total number of hours of overtime work in any quarter shall not exceed seventy-five.

Explanation: In this sub-section "quarter" has the same meaning as in subsection (4) of section 64]. 66. Further restriction on employment of women (1) The provisions of this Chapter shall, in their application to women in factories, be supplemented by the following further instructions, namely :a. no exemption from the provisions of section 54 may be granted in respect of any woman ; b. no woman shall be 14[required or allowed to work in any factory] except between the hours 6 A.M. and 7 P.M. : Provided that the ![State] Government may, by notification in the Official Gazette, in respect of 15[any factory or group or class or description of factories], vary the limits laid down in clause(b), but so that no such variation shall authorize the employment of any woman between the hours of 10 P.M. and 5 A.M.; c. 16[(c) there shall be no change of shifts except after a weekly holiday or any other holiday]. (2) The ![State] Government may make rules providing for the exemption from the restrictions set out in sub-section (1), to such extent and subject to such conditions as it may prescribe, of women working in fish-curing or fish- canning factories, where the employment of women beyond the hours specified in the said restrictions is necessary to prevent damage to, or deterioration in any raw material. (3) The rules made under the sub-section (2) shall remain in force for not more than three years at a time. CHAPTER - VII EMPLOYMENT OF YOUNG PERSONS 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. 68. Non-adult workers to carry tokens A child who has completed his fourteenth year or an adolescent shall not be required or allowed to work in any factory, unless a. a certificate of fitness granted with reference to him under section 69 is in the custody of the manager of the factory, and b. such child or adolescent carried while he is at work a token giving a reference to such certificate 69. Certificate of fitness (1) A certifying surgeon shall, on the application of any young person or his parent or guardian accompanied by a document signed by the manager of a factory that such

person will be employed therein if certified to be fit for work in a factory, or on the application of the manager of the factory, in which any young person wishes to work, examine such person and ascertain his fitness for work in a factory. (2) The certifying surgeon, may grant to such a young person, in the prescribed form, or may renew :a. certificate of fitness to work in a factory as a child, if he is satisfied that the young person has completed his fourteenth year, that he has attained the prescribed physical standards and that he is fit for such work ; b. a certificate of fitness to work in a factory as an adult, if he is satisfied that the young person has completed his fifteenth year and is fit for a full day's work in a factory : Provided that unless the certifying surgeon has personal knowledge of the place where the young person proposes to work and of the manufacturing process which he will be employed, he shall not grant or renew a certificate under this sub-section until he has examined such place. (3) A certificate of fitness granted or renewed under sub-section (2) :a. shall be valid only for a period of twelve months from the date thereof ; b. may be made subject to conditions in regard to the nature of the work in which the young person may be employed, or requiring re-examination of the young person before the expiry of the period of twelve months. (4) A certifying surgeon shall revoke any certificate granted or renewed under subsection (2) if in his opinion the holder of it is no longer fit to work in the capacity' stated therein an a factory. (5) Where a certifying surgeon refuses to grant or renew a certificate or a certificate of the kind requested or revokes a certificate, he shall, if so requested by any person who could have applied for the certificate or the renewal thereof, state his reasons in writing for doing so. (6) Where a certificate under this section with reference to any young person is granted or renewed subject to such conditions as are referred to in clause (b) of sub-section (3), the young person shall not be required or allowed to work in any factory except in accordance with those conditions. (7) Any fee payable for a certificate under this section shall be paid by the occupier and shall not be recoverable fro the young person, his parents or guardian. 70. Effect of certificate of fitness granted to adolescent (1) An adolescent, who has been granted certificate to work in a factory as an adult under clause (b) of sub-section (2) of section 69, and who while at work in a factory carried a token giving reference to the certificate,shall be deemed to be an adult for all the purposes of Chapters VI and VII ;
17

[* * *]

18

[(1A) No female adolescent or a male adolescent who has not attained the age of seventeen years but who has been granted a certificate of fitness to work in a factory as an adult, shall be required or allowed to work in any factory except between 6 A.M. and 7 P.M. : Provided that the State Government may, by notification in the Official Gazette, in respect of any factory or group or class or description of factories: i. ii. vary the limits laid down in this sub-section so, however, that no such section shall authorize the employment of any female adolescent between 10 P.M. and 5 A.M. ; grant exemption from the provisions of this sub-section in case of serious emergency where national interest is involved.

(2) An adolescent who has not been granted a certificate of fitness to work in a factory as an adult under the aforesaid clause (b) shall, notwithstanding his age, be deemed to be a child for all the purposes of this Act 71 Working hour for children (1) No child shall be employed or permitted to work in any factory (a) for more than four and a half hours in any day ;
19

[(b) during the night.

Explanation: For the purpose of this sub-section "night" shall mean a period of at least twelve consecutive hours which shall include the interval between 10 P.M. and 6 A.M.] (2) The period of work of all children employed in a factory shall be limited to two shifts which shall not overlap or spreadover more than five hours each; and each child shall be employed in only one of the relays which shall not, except with the previous permission in writing of the Chief Inspector, be changed more frequently than once in a period of thirty days. (3) The provisions of section 52 shall apply also to child workers and no exemption from the provisions of that section may be granted in respect of any child. (4) No child shall be required or allowed to work in any factory on any day on which he has already been working in another factory.
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[(5) No female child shall be required or allowed to work in any factory except between 8 A.M. and 7 P.M.] 72. Notice of period of work for children (1) There shall be displayed and correctly maintained in every factory in which children are employed, in accordance with the provisions of sub-section (2) of section 108 a notice of periods of work for children, showing clearly for every day the periods during which children may be required or allowed to work.

(2) The periods shown in the notice required by sub-section (1) shall be fixed beforehand in accordance with the method laid down for adult workers in section 61, and shall be such that children working for those periods would not be working in contravention of any of the provisions of section 71. (3) The provisions of sub-sections (8), (9) and (10) of section 61 shall apply also to the notice required by sub-section (1) of this section. 73. Register of child workers (1) The manager of every factory in which children are employed shall maintain a register of child workers, to be available to the Inspector at all times during working hours or when any work is being carried on in an factory, showing :a. b. c. d. e.
21

the name of each child worker in the factory, the nature of his work, the group, if any, in which he is included, where his group on shifts, the relay to which he is allotted, and the number of his certificate of fitness granted under section 69.

[(1A)No child worker shall be required or allowed to work in any factory unless his name and other particulars have been entered in the register of child workers.] (2) The State Government may prescribe the form of the register of child workers, the manner in which it shall be maintained and the period for which it shall be preserved. 74. Hours of work to correspond with notice under section 72 and register under section 73 No child shall be employed in any factory otherwise than in accordance with the notice periods of work for children displayed in the factory and the entries made beforehand against his name and the register of child workers of the factory. 75. Power to require medical examination Where an Inspector is of opinion (a) that any person working in a factory without a certificate of fitness is a young person, or (b) that a young person working in a factory with a certificate of fitness is no longer fit to work in the capacity stated therein, he may serve on the manager of the factory a notice requiring that such person or young person, as the case may be, shall be examined by a certifying surgeon, and such person or young person shall not, if the Inspector so directs, he employed, or permitted to work, in any factory until he has been so examined and has been granted a certificate of fitness, as the case may be, under section 69, or has been certified by the certifying surgeon examining him not to be a young person.

76. Power to make rules The ![State] Government may make rules :a. prescribing the forms of certificate of fitness to be granted under section 69, providing for the grant of duplicates in the event of loss of the original certificate, and fixing the fees which may be charged for such certificates and renewals thereof and such duplicates ; b. prescribing the physical standards to be attained by children and adolescents working in factories; c. regulating the procedure of certifying surgeons under this Chapter; d. specifying other duties which certifying surgeons may be required to perform in connection with the employment of young persons in factories, and fixing the fees which may be charged for such duties and the persons by whom they shall be payable. 77. Certain other provisions of law not barred The provisions of this Chapter shall be in addition to, and not in derogation of, the provisions of the Employment of Children's Act, 1938 (XXVI of 1938).

CHAPTER-VIII ANNUAL LEAVE WITH WAGES 78. Application of Chapter (1) The provisions of this Chapter shall not operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, 23 [agreement (including settlement)] or contract of service :
24

[Provided that if such award, agreement (including settlement) or contract of service provides for a longer annual leave with wages than provided in this Chapter, the quantam of leave, which the worker shall be entitled to, shall be in accordance with such award, agreement or contract service, but in relation to matters not provided for in such award, agreement or contract of service or matters which are provided for less favourable therein, the provisions of sections 79 to 82, so far as may be, shall apply.] (2) The provisions of this Chapter shall not apply to workers 25[in any factory] of any railway administered by the Government, who are governed by leave rules approved by the Cental Government.

79. Annual leave with wages (1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of :i. ii. if an adult, one day for every twenty days of work performed by him during the previous calendar year ; if a child, one day for every fifteen days of work performed by him during the previous calendar year. Explanation1: For the purposes of this sub-section :a. any days of lay-off; by agreement or contract or as permissible under the standing orders; b. in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and c. the leave earned in the year prior to that in which the leave is enjoyed; shall be deemed to be days on which the worker has worked in a factory for the purpose of computation of the period of 240 days or more, but he shall not earn leave for these days. Explanation 2: The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave. (2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid in clause (i) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the remainder of the calendar year.
26

[(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before the discharge, dismissal, quitting of employment, superannuating or death calculated at the rates specified in sub-section (1),even if he had not worked for the entire period specified i sub- section(1) or subsection(2) making him eligible to avail of such leave, and such payment shall be madei. ii. where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal or quitting; and where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuating or death.]

(4) In calculating leave under this section, fraction of leave of half a day or more shall be treated as one full day's leave and fraction of less than a half a day shall be omitted. (5) If a worker does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub-section (2),as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year :

Provided that the total number of days of 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 : Provided further that a worker, who has applied for leave with wages but has not been given such leave in accordance with any scheme laid down in sub- sections (8) and (9) 27[or in contravention of sub-section (10)] shall be entitled to carry 2 forward the 28[leave refused] without any limit. (6) A worker may at any time apply in writing to the manager of a factory not less than fifteen days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year : Provided that the application shall be made not less than thirty days before the date on which the worker wishes his leave to begin, if he is employed in a public utility service as defined in clause (n) of section 2 of the Industrial Disputes Act, 1947 (XIV of 1947) : Provided further that the number of times in which leave may be taken during any year shall not exceed three. (7) If a worker wants to avail himself of the leave with wages due to him to cover a period of illness, he shall be granted such leave even if the application for leave is not made within the time specified in sub-section (6); and in such a case wages as admissible under section 81 shall be paid not later than fifteen days, or in the case of a public utility service not later than thirty days from the date of the application for leave. (8) For the purpose of ensuring the continuity of work, the occupier or manager of the factory, in agreement with the Works Committee of the factory constituted under section 3 of the Industrial Disputed Act, 1947 (XIV of 1947), or a similar Committee under any other Act or if there is no such Works Committee or a similar Committee in the factory, in agreement with the representatives of the workers therein chosen in the prescribed manner, may lodge with Chief Inspector a scheme in writing whereby the grant of the leave allowable under this section may be regulated. (9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and convenient places in the factory and shall be in force for a period of twelve months from the date on which it comes into force, and may thereafter be renewed with or without modification for a further period of twelve months at a time, by the manager in agreement with the Works Committee or a similar Committee, or as the case may be,in agreement with the representatives of the workers as specified in sub-section (8), and a notice of renewal shall be sent to the Chief Inspector before it is renewed. (10) An application for leave which does not contravene the provisions of sub-section (6) shall not be refused, unless refusal is in accordance with the scheme for the time being in operation under sub-sections (8) and (9). (11) If the employment of a worker who is entitled to leave under sub-section(1) or subsection (2), as the case may be, is terminated by the occupier before he has taken the entire leave to which he is entitled, or if having applied for and having not been granted

such leave, the worker quits his employment before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken,and such payment shall be made, where the employment of the worker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who quits his employment, on or before the next pay day. (12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal. 80. Wages during leave period (1) For the leave allowed to him under 29[section 78 or section 79, as the case may be], a worker 31[shall be entitled to wages] at a rate equal to daily average of his total full time earnings for the day on which 30[he actually worked] during the months immediately preceding his leave,exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of advantage accruing through the concessional sale to the worker of foodgrains and other articles.
32

[Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar months preceding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.] (2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often as may be prescribed, on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family. Explanation 1: "Standard family" means a family consisting of a worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units. Explanation 2: "Adult consumption unit" means the consumption of a male above the age of fourteen years; and the consumption unit of a female above the age of fourteen years, and that child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult consump- tion unit. (3) The ![State] Government may make rules prescribing : a. the manner in which the cash equivalent of the advantage accruing through the concessional sale to a worker of foodgrains and other articles shall be computed; and b. the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section.

81. Payment in advance in certain cases A worker who has been allowed leave for not less than four days, in the case of an adult, and five days, in the case of a child, shall, before his leave begins, be paid the wages due for the periods of the leave allowed. 82. Mode of recovery of unpaid wages Any sum required to be paid by an employer, under this Chapter but not paid by him shall be recoverable as delayed wages under the provisions of the Payment of Wages Act, 1936 (IV of 1936). 83. Power to make rules The ![State] Government may make rules directing managers of factories to keep registers containing particulars as may be prescribed and requiring the registers to be made available for examination by Inspectors. 84. Power to exempt factories Where the ![State] Government is satisfied that the leave rules applicable to workers in a factory provide benefits which in its opinion are not less favourable than those for which this Chapter makes provisions it may, by written order, exempt the factory from all or any of the provisions of this Chapter subject to such conditions as may be specified in the order.
33

[Explanation: For the purses of this section, in deciding whether the benefits which are provided for by any leave rules are less favourable than those for which this Chapter makes provision, or not the totality of the benefits shall be taken into account.]

SCHEDULES FIRST SCHEDULE List of Industries involving hazardous processes 1. Ferrous Metallurgical Industries o Integrated Iron and Steel o Ferrow-alloys o Special Steels 2. Non-ferrous metallurgical Industries o Primary Metallurgical Industries, namely, zinc, lead, copper, manganese and aluminium 3. Foundries (ferrous and non-ferrous) o Castings and forging including cleaning or smootherning/roughening by sand and shot blasting 4. Coal (including coke) industries o Coal , Lignite, Coke, etc. o Fuel Gases (including Coal Gas, Producer Gas, Water Gas) 5. Power Generating Industries 6. Pulp and paper (including paper products) industries 7. Fertiliser Industries o Nitrogenous o Phosphatic o Mixed 8. Cement Industries o Portland Cement (including slag cement, puzzolona cement and their products) 9. Petroleum Industries o Oil Refining o Lubricating Oils and Greases 10. Petro-chemical Industries 11. Drugs and Pharmaceutical Industries

o Narcotics, Drugs and Pharmaceuticals 12. Fermentation Industries (Distilleries and Breweries) 13. Rubber (Synthetic) Industries 14. Paints and Pigment Industries 15. Leather Tanning Industries 16. Electro-plating Industries 17. Chemical Industries o Coke Oven by-products and Coaltar Distillation products o Industrial Gases (nitrogen, oxygen, acetylene, argon, carbon dioxide, hydrogen, sulphur dioxide, nitrous oxide, halogenated hydrocarbon, ozone, etc.) o Industrial Carbon o Alkalies and Acids o Chromates and dichromates o Leads and its compounds o Electrochemicals (metallic sodium, potassium and magnesium, chlorates, perchlorates and peroxides) o Electrothermal produces (artificial abrasive, calcium carbide) o Nitrogenous compounds (cyanides, cyanamides and other nitrogenous compounds) o Phosphorous and its compounds o Halogens and Halogenated compounds (Chlorine, Flourine, Bromine and Iodine o Explosives (including industrial explosives and detonators and fuses) 18. Insecticides, Fungicides, Herbicides and other Pesticides Industries 19. Synthetic Resin and plastics 20. Man-made Fibre (Cellulosic and non-cellulosic) Industry 21. Manufacture and repair of electrical accumulators 22. Glass and Ceramics 23. Grinding or glaxing of metals 24. Manufacture, handling and processing of asbestos and its products 25. Extraction of oils and fats from vegetable and animal sources 26. Manufacture, handling and use of benzene and substances containing benzene 27. Manufacturing processes and operations involving carbon disulphide 28. Dyes and Dyestuff including their intermediates 29. Highly flammable liquids and gases

SECOND SCHEDULE THE SECOND SCHEDULE (See Section 41-F) Permissible Levels of Certain Chemical substances in work environment Sl. No. Substances Permissible Limits of Exposure Time-Weighted AverageShort-term exposure Limit Concentration (TWA) (8 STEL (15 min) hrs.) ppm mg/m3** ppm mg/m3** 3 4 5 6 100 180 150 270

1 1

2 Acetaldehyde

2 3 4 5. 6. 7. 8. 9. 10

Acetic acid Acetone Acrolein Acrylonitrile-Skin(S.C) Aldrin-Skin Allyl Chloride Ammonia Aniline-Skin Anisidine (o, pisomers)-Skin 11 Arsenic & soluble compounds (as As) 2 [12 Benzene (H.C.) 13 Beryllium & compounds (as Be (S.C.) 14 Boron trifluoride-C 15 Bromine 16 Butane 17 2-Butanone (Metyl ethyl Ketone-MEK) 18 n-Butyl acetate 19 n-Butyl alcohol-Skin-C 20 Sec/Tert. Butyl acetate 21 Butyl mercaptan 22 Cadmium Dusts and Salts (as Cd) 23 Calcium Oxide 24 Carbaryl (Sevin) 25 Carbofuran (Furadan) 26 Carbon disulphide Skin 27 Carbon Monoxide 28 Carbon Tetrachloride Skin (S.C.) 29 Chlordane Skin 30 Chlorine

10 750 0.1 2 -1 25 2 0.1 -0.5 -1 0.1 800 200 150 50 200 0.5 ----10 50 5 -1

25 1,780 0.25 4.5 0.25 3 18 10 0.5 0.2 1.5 0.002 3 0.7 1,900 590 710 150 950 1.5 0.05 2 5 0.1 30 55 30 0.5 3

15 1,000 0.3 --2 35 ---2.5 --0.3 -300 200 --------400 --3

37 2,375 0.8 --6 27 ---7.5] --2 -885 950 --------440 -2 9

1. Ins. by Act 20 of 1987, S.45 (w.e.f. 1.12.1987) 2. Subs. by S.O.342(E) dt.19.4.2001(w.e.f.) 19.4.2001, Gaz. of India Ext.247, dt. 19.4.2001. Pt.II, Sec.3(ii). 1 31 32 33 34 2 Chlorobenzene (Monochlorobenzene) Chloroform (S.C.) bis (Chloromethyl) ether (H.C.) Chromic acid and 3 75 10 0.001 -350 50 0.005 0.05 4 ----5 ----6

chromates (as Cr) (Water soluble) 35 Chrombus salts (as Cr) -0.5 --36 Copper Fume -0.2 --37 Cotton Dust, raw -0.2 *1 --38 Cresol, all isomers-Skin 5 22 --39 Cyanide (as CN)-Skin -5 --40 Cyanogen 10 20 --41 DDT (Dichlorodiphenyl -1 --trichlorothane) 42 Demeton-Skin 0.01 0.1 --43 Diazinon-Skin -0.1 --44 Dibutyl phthalate -5 --45 Dichlorvos (DDVP)-Skin 0.1 1 --46 Dieldrin-Skin 0.25 ---47 Dinitrobenzene (all 0.15 1 --isomers)-Skin 48 Dinitrotoluene-Skin -1.5 --49 Diphenyl (Biphenyl) 0.2 1.5 --50 Endosulfan (Thiodan)- -0.1 --Skin 51 Endrin-Skin -0.1 --52 Ethylacetate 400 1,400 --53 Enthyl alcohol 1,000 1,900 --54 Ethylamine 10 18 --55 Fluoride (as F) -2.5 --56 Fluorine 1 2 2 4 57 Formaldehyde (S.C.) 1.0 1.5 2 3 58 Formic acid 5 9 --59 Gasoline 300 900 500 1,500 60 Hydrazine-skin (S.C.) 0.1 0.1 --61 Hydrogen chloride-C 5 7 --62 Hydrogen cyanide-Skin- 10 10 --C 63 Hydrogen fluoride(as F)- 3 2.5 --C 64 Hydrogen peroxide 1 1.5 --65 Hydrogen Sulphide 10 14 15 21 66 Iodine-C 0.1 1 --67 Iron Oxide Fume (Fe2 -5 --O3 (as Fe) 68 Isoamyl acetate 100 525 --1 *Lint-free dust as measured by the vertical elutricator cotton dust sampler. 1 69 70 71 2 3 Isoamyl Alcohol 100 Isobutyl alcohol 50 Lead, inorg, dusts and -fumes (as Pb) 4 360 150 0.15 125 --5 450 --6

72 73 74 75 76

77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106

Lindane-Skin Malathion-Skin Manganese dust and compounds (as Mn)-C Manganese fume (as Mn) Mercury (as Hg)-Skin (i) Alkyl compounds (ii) All forms except alkyl vapour (iii) Aryl and inorganic compounds Methyl alcohol (Methanol)- Skin Methyl cellosolve (2Methoxyethanol)-Skin Methyl isobutyl ketone Methyl isocyanate-Skin Naphthalene Nickel carbonyl (as Ni) Nitric acid Nitric oxide Nitrobenzene-Skin Nitrogen dioxide Oil mist mineral Ozone Parathion-Skin Phenol-Skin Phorate (Thimet)-Skin-Phosgene (Carbonyl chloride) Phosphine Phosphoric acid (yellow) Phosphorus (yellow) Phosphorus pentachloride Phosphorus trichloride Picric acid-Skin Pyridine Silane (Silicon tetrahydride Sodium hydroxide C Styrene, monomer (Phenylethylene) Sulphur dioxide Sulphur hexafluoride Sulphuric Acid Tetraethyl lead (as Pb)Skin

-------200 5 50 0.02 10 0.05 2 25 1 3 -0.1 -5 -0.1 0.3 --0.1 0.2 -5 5 -50 2 1,000 ---

0.5 10 5 1 0.01 0.05 0.1 260 16 205 0.05 50 0.35 5 30 5 6 5 0.2 0.1 19 0.05 0.4 0.4 1 0.1 1 1.5 0.1 15 7 2 215 5 6,000 1 0.1

-------250 -75 -15 -4 --5 -0.3 ----1 ---0.5 ----100 5 ----

---0.03 0.03 --310 -300 -75 -10 --10 10 0.6 --0.2 -1 3 --3 0.3 ---425 10 ----

107 108 109 110 111 112 113 114 115

Toluene (Toluol) O-Tuluidine-Skin (S.C) Tributyl Phosphate Trichloroethylene Uranium, natural (as U) Vinyl chloride (H.C.) Welding fumes Xylene (o-,m-, p-isomers Zinc oxide (i) Fume (ii)Dust (Total dust) 116 Zirconium compounds (as Zr) ppm : mg/m3 *: ,. **: C: Skin : S.C. : H.C. :

100 2 0.2 50 -5 -100 ----

375 9 2.5 270 0.2 10 5 435 5.0 10.00 5

150 --200 ---150 ----

560 --1,080 0.6 --655 10 -10

Parts of vapour or gas per million parts of contaminated air by volume at 25OC and 760 to or (mm of mercury) milligram of substances per cubic metre of air. Not more than 4 times a day with at least 60 min. internal between successive exposures Molecular weight 3 mg/m ----------------------------------x ppm 24.45 denotes ceiling limit. denotes potential contribution to the overall exposure by the cutaneous route including mucous membranes and eye. denotes suspected human carcinogens. denotes confirmed human carcinogens.

---------------------------------------------------------------------------------------------------------Substance Permissible time-weighted average concentration (TWA) (8 hours) Silica, Si O2 (a) Crystalline (i) Quartz (1) (1) 10600 In terms of dust count ------------------------------------- mppcm % Quartz + 10 10 In terms of respirable dust --------------------------------- mg/m3 % respirable Quartz + 2

(2) (2)

30 (3) In terms of total dust -------------------------------------- mg/m3 % Quartz + 3 (ii) (iii) (iv) (v) Cristobalite : Half the limits given against quartz Tridymite : Half the limits given against quartz Silica, fused : Same limits as for quartz Tripoli : Same limit as in formula in item (2) given against quartz

(b) Amorphous Silicates : 10 mg/m3, Total Dust [Asbestos (H.C. (a) (a) Amosite 0.5 fibre/cc*** (b) (b) Chrystolite .1.0 fibre/cc*** (c) (c) Crocidolite ..0.2 fibre/cc***] Portland cement : 10 mg/m3, Total dust containing less than 1% quartz. Coal Dust : 2mg/m3, respirable dust fraction containing less than 5% quartz.

-----------------------------------------------------------------------------------------------------mppcm : Million particles per cubic metre of air, based on impinger samples counted by light field techniques. *** (i) For fibres greater than 5 um in length and less than 5 um in breadth with length to breadth ratio equal to or greater than 3:1. (ii) As determined by the membrane filter method at 400-450 x magnification (4mm objective) phase contrast illumination. ------------------------------------------------------------------------------------------------------Respirable Dust : Fraction passing a size-selector with the following characteristics : Aerodynamic Diameter (UM) (Unit % density sphere) selector 2 90 2.5 75 3.5 50 5.0 25 10 0 passing

2. Subs. by S.O.342(E) dt.19.4.2001(w.e.f.) 19.4.2001, Gaz. of India Ext.247, dt. 19.4.2001. Pt.II, Sec.3(ii). Date : 4th June, 2007

THIRD SCHEDULE List of notifiable diseases 1. Lead poisoning including poisoning by any preparation or compound of lead or their sequelae. 2. Lead tetra-ethyl poisoning. 3. Phosphorous poisoning or its sequelae. 4. Mercury poisoning or its sequelae. 5. Manganese poisoning or its sequelae. 6. Arsenic poisoning or its sequelae. 7. Poisoning by nitrous fumes. 8. Carbon bisulphide poisoning. 9. Benzene poisoning, including poisoning by any of its homologues, their nitro or amido derivatives or its sequelae. 10. Chrome ulceration or its sequelae. 11. Anthrax. 12. Silicosis. 13. Poisoning by halogens or halogen derivatives of the hydrocarbons, of the aliphatic series. 14. Pathological manifestation due to : a. radium or other radioactive substances. b. X-rays. 15. Primary epitheliomatous cancer of the skin. 16. Toxic anaemia. 17. Toxic jaundice due to poisonous substances. 18. Oil acne or dermatitis due to mineral oils and compounds containing mineral oil base. 19. Byssionosis. 20. Asbestosis. 21. Occupational or contact dermatitis caused by direct contract with chemical and paints. These are of types, that is, primary irritants and allergic sensitizers. 22. Noise induced hearing loss (exposure to high noise levels). 23. Beryllium poisoning. 24. Carbon monoxide. 25. Coal miners' pnoumoconiosis.

26. Phosgene poisoning. 27. Occupational cancer. 28. Isocyanates poisoning. 29. Toxic nephritis.

EMPLOYEES STATE INSURANCE ACT, 1948

[Act No. 34 of Year 1948, dated 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 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: CHAPTER I : PRELIMINARY 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 1[***]. (3) It shall come into force on such 2date 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 3[ 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:

[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 5[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 : [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.] [(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.] 2. Definitions 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 7[a railway administration] or a major port or a mine or oilfield, the Central Government, and in all other cases, the 8[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; [(5)***] (6) "Corporation" means the Employees' State Insurance Corporation set up under this Act;
11

[(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 or adopted 12 [daughter;]

14

[(ia) a widowed mother;]

(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;
13

[(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 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;

14

[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 15[or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961, or under the standing orders of the establishment; but does not include ]](a) any member of 16[the Indian] naval, military or air forces; or
17

[(b) any person so employed whose wages (excluding remuneration for overtime work) exceed 18[such wages as may be prescribed136 by the Central Government]]: PROVIDED that an employee whose wages (excluding remuneration for overtime work) exceed 18[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 employee's contribution;
19

[(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 or a railway running shed;]

(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 4 [and includes a contractor];
11

[(13A) "insurable employment" means an employment in a factory or establishment to which this Act applies;] (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;
11

[ (14A) "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 employer;]
4

[(14AA) "manufacturing process" shall have the meaning assigned to it in the Factories Act, 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;] (15) "occupier" of the factory shall have the meaning assigned to it in the Factories Act, 1948];
11

[(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;]
4

[(15C) "power" shall have the meaning assigned to it in the Factories Act, 1948;]

(16) "prescribed" means prescribed by rules under this Act; (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 20[the Factories Act, 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 by the Corporation; (19) "Schedule" means a Schedule to this Act;
4

[(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 21[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 11 [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, 22[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; (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.
23

[(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.]
24

[(24) all other words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947, shall have the meanings respectively assigned to them in that Act.] 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.] CHAPTER II: CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL 3. Establishment of Employees State insurance Corporation (1) With effect from such date25 as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the administration of the scheme of employees' state insurance in accordance with the provisions of this Act a Corporation to be known as the Employees' State Insurance Corporation. (2) The Corporation shall be a body corporate by the name of Employees' State Insurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued. 4. Constitution of Corporation The Corporation shall consist of the following members, namely:26

[(a) a Chairman to be 27[appointed] by the Central Government;

(b) a Vice-Chairman to be 27[appointed] by the Central Government;] (c) not more than five persons to be 27[appointed] by the Central Government, 28[* * *]; (d) one person each representing each of the 29[30[States] in which this Act is in force] to be 27[appointed] by the State Government concerned; (e) one person to be 27[appointed] by the Central Government to represent the 31[Union Territories];

(f) 32[ten] persons representing employers to be 27[appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government; (g) 32[ten] persons representing employees to be 27[appointed] by the Central Government in consultation with such organisations of employees as may be reorganised for the purpose by the Central Government; (h) two persons representing the medical profession to be 27[appointed] by the Central Government in consultation with such organisation of medical practitioners as may be recognised for the purpose by the Central Government 33[* * *; (i) three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States; and (j) the Director-General of the Corporation ex-officio.] 5. Term of office of members of the Corporation (1) Save as otherwise expressly provided in this Act, the term of office of members of the Corporation other than 34[the members referred to in clauses (a), (b), (c), (d) and (e) of section 4 and the ex officio member,] shall be four years, commencing from the date on which their 27[appointment] or election is notified: PROVIDED that a member of the Corporation shall, notwithstanding the expiry of the said period of four years, continue to hold office until the 27[appointment] or election of his successor is notified. (2) The members of the Corporation referred to in clauses 35[(a),(b),(c) and (e)]of section 4 shall hold office during the pleasure of the government 27[appointing] them. 6. Eligibility for re-nomination or re-election An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for 36[re-appointment] or re-election as the case may be. 7. Authentication of orders, decisions, etc. All orders and decisions of the Corporation shall be authenticated by the signature of the Director General of the Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the Director General or such other officer of the Corporation as may be authorised by him.] 8. Constitution of Standing Committee A Standing Committee of the Corporation shall be constituted from among its members, consisting of-

(a) A Chairman, 38[appointed] by the Central Government; (b) three members of the Corporation 38[appointed] by the Central Government];
39

[(bb) three members of the Corporation representing such three State Governments thereon as the Central Government may, by notification Gazette, specify from time to time;] (c) 40[eight] members elected by the Corporation as follows41

[* * *]

(ii) 42[three] members from among the members of the Corporation representing employers; (iii) 42[three] members from among the members of the Corporation representing employees; (iv) one member from among the members of the Corporation representing the medical profession; and (v) one member from among the members of the Corporation elected by 43[Parliament];
44

[(d) the Director General of the Corporation, ex officio.]

9. Term of office of members of Standing Committee (1) Save as otherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or 45[clause (b) or clause (bb)]of section 8, shall be two years from the date on which his election is notified: PROVIDED that a member of the Standing Committee shall, notwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified: PROVIDED FURTHER that a member of the Standing Committee shall cease to hold office when he ceases to be a member of the Corporation. (2) A member of the Standing Committee referred to in clause (a) or 45[clause (b) or clause (bb)] of section 8 shall hold office during the pleasure of the Central Government. 10. Medical Benefit Council (1) The Central Government shall constitute a Medical Benefit Council consisting of(a) the Director General, Health Services, ex officio, as Chairman; (b) a Deputy Director General, Health Services, to be Government;
27

[appointed] by the Central

(c) the medical commissioner of the Corporation, ex officio; (d) one member each representing each of the 29[46[States (other than Union Territories) in Which this Act is in force] to be 27[appointed] by the State Government concerned; (e) three members representing employers to be 27[appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government; (f) three members representing employees to be 27[appointed] by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government; and (g) three members, of whom not less than one shall be a woman, representing the medical profession, to be 27[appointed] by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government. (2) Save as otherwise expressly provided in this Act, the term of office of a member of the Medical Benefit Council, other than a member referred to in any of the clauses (a) to (d) of sub-sec. (1), shall be four years from the date on which his 27[appointment] is notified:
47

[PROVIDED that a member of the Medical Benefit Council shall notwithstanding the expiry of the said period of four years continue to hold office until the 48[appointment] of his successor is notified.] (3) A member of the Medical Benefit Council referred to in clauses (b) and (d) of subsection (1) shall hold office during the pleasure of the government 48[appointing] him. 11. Resignation of membership A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that government. 12. Cessation of membership
49

[(1)] A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof : PROVIDED that the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.
39

[(2) Where in the opinion of the Central Government any person 48[appointed] or elected to represent employers, employees or the medical profession on the Corporation, the Standing Committee or the Medical Benefit Council, as the case may

be, has ceased to represent such employers, employees, or the medical profession, the Central Government may, by notification in the Official Gazette, declare that with effect from such date as may be specified therein such person shall cease to be a member of the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.] [ (3) A person referred to in clause (i) of section 4 shall cease to be a member of the Corporation when he ceases to be a Member of Parliament.] 13. Disqualification A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medical Benefit Council(a) if he is declared to be of unsound mind by a competent court; or (b) if he is an undischarged insolvent; or (c) if he has directly or indirectly by himself or by his partner any interest in a subsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder (not being a director) of a company; or (d) if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitude. 14. Filling of vacancies (1) Vacancies in the office of 48[appointed] or elected members of the Corporation, the Standing Committee and the Medical Benefit Council shall be filled by 50[appointment] or election, as the case may be. (2) A member of the Corporation, the Standing Committee or the Medical Benefit Council 48 [appointed] or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is 48[appointed] or elected would have been entitled to hold office, if the vacancy had not occurred. 15. Fees and allowances Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government. 16. Principal officers
50 44

[(1) The Central Government may, in consultation with the Corporation, appoint a director general and a financial commissioner.] (2) The director general shall be the chief executive officer of the Corporation.

(3) 51[The director general and the financial commissioner] shall be whole-time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government 44[and of the Corporation.] (4) 51[The director general or the financial commissioner] shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing 52 [director general or financial commissioner] shall be eligible for re-appointment if he is otherwise qualified. (5) 51[The director general or the financial commissioner] shall receive such salary and allowances as may be prescribed by the Central Government. (6) A person shall be disqualified from being 48[appointed] as or for being 52[The Director General or the Financial Commissioner] if he is subject to any of the disqualifications specified in section 13. 7. The Central Government may at any time remove 52[the director general or the financial commissioner] from office and shall do so if such removal is recommended by a resolution of the Corporation passed at a special meeting called for the purpose and supported by the votes of not less than two-thirds of the total strength of the Corporation. 17. Staff (1) The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post 53[the maximum monthly salary of which 54[exceeds such salary as may be prescribed by the Central Government.]
55

[(2)(a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation 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 Corporation 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 the members of the staff under clause (a), the Corporation 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 Corporation shall refer the matter to the Central Government whose decision thereon shall be final.] (3) Every appointment to 56[posts 6[(other than medical posts)] corresponding to 57[Group A and Group B] posts under Central Government], shall be made in consultation with the 58 [Union] Public Service Commission:

PROVIDED that this sub-section shall not apply to an officiating or temporary 48 [appointment] for 59[a period] not exceeding one year:
4

[PROVIDED FURTHER that any such officiating or temporary appointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regulations for promotion to next higher grade.]
58

[(4) If any question arises whether a post corresponds to a 6[Group A and Group B] post under the Central Government, the question shall be referred to that government whose decision thereon shall be final.] 18. Powers of the Standing Committee (1) Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation. (2) The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf. (3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation. 19. Corporation's power to promote measures for health, etc. of insured persons The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government. 20. Meetings of Corporation, Standing Committee and Medical Benefit Council Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Council shall meet at such times and places and shall observe such rules or procedure in regard to transaction of business at their meetings as may be specified in the regulations made in this behalf. 21. Supersession of the Corporation and Standing Committee (1) If in the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that government may, by notification in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in consultation with the Corporation, the Standing Committee:

PROVIDED that before issuing a notification under this sub-section the Central Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Corporation or the Standing Committee, as the case may be. (2) Upon the publication of a notification under sub-section (1) superseding the Corporation or the Standing Committee, all the members of the Corporation or the Standing Committee, as the case may be, shall, as from the date of such publication, be deemed to have vacated their offices. (3) When the Standing Committee has been superseded, a new standing Committee shall be immediately constituted in accordance with section 8. (4) When the Corporation has been superseded, the Central Government may(a) immediately 27[appoint] or cause to be 27[appointed] or elected new members to the Corporation in accordance with section 4 and may constitute a new Standing Committee under section 8; (b) in its discretion, appoint such agency, for such period as it may think fit, to exercise the powers and perform the functions of the Corporation and such agency shall be competent to exercise all the powers and perform all the functions of the Corporation. (5) The Central Government shall cause a full report of any action taken under this section and the circumstances leading to such action to be laid before 43[Parliament] at the earliest opportunity and in any case not later than three months from the date of the notification superseding the Corporation or the Standing Committee as the case may be. 22. Duties of Medical Benefit Council The Medical Benefit Council shall(a) advise 60[the Corporation and the Standing Committee] on matters relating to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters; (b) have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical treatment and attendance; and (c) perform such other duties in connection with medical treatment and attendance as may be specified in the regulations. 23. Duties of 61[Director General and the Financial Commissioner] The 61[director general and the financial commissioner] shall exercise such powers and discharge such duties as may be prescribed. They shall also perform such other functions as may be specified in the regulations.

24. Acts of Corporation, etc. not invalid by reason of defect in constitution, etc. No act of the Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be invalid by reason of any defect in the constitution of the Corporation, the Standing Committee or the Medical Benefit Council, on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in his 27[appointment] or election, or by reason of such act having been done during the period of any vacancy in the office of any member of the Corporation, the Standing Committee or the Medical Benefit Council. 25. Regional Boards, Local Committees, Regional and Local Medical Benefit Councils The Corporation may appoint regional boards, local committees and regional and local Medical Benefit Councils in such areas and in such manner, and delegate to them such powers and functions, as may be provided by the regulations. CHAPTER III: FINANCE AND AUDIT 26. Employees State Insurance Fund (1) All contributions paid under this Act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees' State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act. (2) The Corporation may accept grants, donations and gifts from the Central or any 62 [State Government,] 63[***] local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act.
64

[(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or such other bank as may be approved by the Central Government to the credit on an account styled the account of the Employees State Insurance Fund.] (4) Such account shall be operated on by such officers as may be authorised by the Standing Committee with the approval of the Corporation. 27. Grant by the Central Government [Omitted by Act No. 44 of 1966, section 12 (w.e.f. 17th., June, 1967)] 28. Purposes for which the fund may be expended Subject to the provisions of this Act and of any rules made by the Central Government in that behalf, the Employees State Insurance Fund shall be expended only for the following purposes, namely:-

(i) payment of benefits and provision of medical treatment and attendance to insured persons and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with the provisions of this Act and defraying the charges and costs in connection therewith; (ii) payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Council, the regional boards, local committees and regional and local Medical Benefit Councils; (iii) payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of officers and servants of the Corporation and meeting the expenditure in respect of offices and other services set up for the purpose of giving effect to the provisions of this Act; (iv) establishment and maintenance of hospitals, dispensaries and other institutions and the provisions of medical and other ancillary services for the benefit of insured persons and, where the medical benefit is extended to their families, their families; (v) payment of contributions to any 62[State Government,] 63[***] local authority or any private body or individual, towards the cost of medical treatment and attendance provided to insured persons and, where the medical benefit is extended to their families, their families including the cost of any building and equipment in accordance with any agreement entered into by the Corporation; (vi) defraying the cost (including all expenses) of auditing the accounts of the Corporation and of the valuation of its assets and liabilities; (vii) defraying the cost (including all expenses) of the Employees State Insurance Courts set up under this Act; (viii) payment of any sums under any contract entered into for the purposes of this Act by the Corporation or the Standing Committee or by any officer duly authorised by the Corporation or the Standing Committee in that behalf; (ix) payment of sums under any decree, order or award of any Court or Tribunal against the Corporation or any of its officers or servants for any act done in the execution of his duty or under a compromise or settlement of any suit or other legal proceeding or claim instituted or made against the Corporation; (x) defraying the cost and other charges of instituting or defending any civil or criminal proceedings arising out of any action taken under this Act; (xi) defraying expenditure, within the limits prescribed, on measures for the improvement of the health and welfare of insured persons and for the rehabilitation and reemployment of insured persons who have been disabled or injured; and (xii) such other purposes as may be authorised by the Corporation with the previous approval of the Central Government.

28A. Administrative expenses The types of percentage of shall be such shall keep its Government.] expenses which may be termed as administrative expenses and the the income of the Corporation which may be spent for such expenses as may be prescribed by the Central Government and the Corporation administrative expenses within the limit so prescribed by the Central

29. Holding of property, etc. (1) The Corporation may, subject to such conditions as may be prescribed by the Central Government, acquire and hold property both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for the purposes for which the Corporation is established. (2) Subject to such conditions as may be prescribed by the Central Government, the Corporation may from time to time, invest any moneys which are not immediately required for expenses properly defrayable under this Act and may, subject as aforesaid, from time to time re-invest or realise such investments. (3) The Corporation may, with the previous sanction of the Central Government and on such terms as may be prescribed by it, raise loans and take measures for discharging such loans. (4) The Corporation may constitute for the benefit of its staff or any class of them, such provident or other benefit fund as it may think fit. 30. Vesting of the property in the Corporation All property acquired before the establishment of the Corporation shall vest in the Corporation and all income derived and expenditure incurred in this behalf shall be brought into the books of the Corporation. 31. Expenditure by Central Government to be treated as a loan [Omitted by Act No. 44 of 1966, section 12 w.e.f. 17th., June, 1967.] 32. Budget estimates The Corporation shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the Central Government before such date as may be fixed by it in that behalf. The budget shall contain provisions adequate in the opinion of the Central Government for the discharge of the liabilities incurred by the Corporation and for the maintenance of a working balance. 33. Accounts

The Corporation shall maintain correct accounts of its income and expenditure in such form and in such manner as may be prescribed by the Central Government. 34. Audit (1) The accounts of the Corporation 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 Corporation to the Comptroller and Auditor-General of India. (2) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Corporation 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, account, connected vouchers and other documents and papers and to inspect any of the offices of the Corporation. (3) The accounts of the Corporation 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 Corporation which shall forward the same to the Central Government along with its comments on the report of the Comptroller and Auditor General.] 35. Annual report The Corporation shall submit to the Central Government an annual report of its work and activities. 36.Budget, audited accounts and the annual report to be placed before 43 [Parliament] The annual report, the audited accounts of the Corporation 44[together with 65[the report of the Comptroller and Auditor-General of India thereon and the comments of the Corporation on such report] under section 34] and the budget as finally adopted by the Corporation shall be placed before 43[Parliament] 66[* * *]. 37. Valuation of assets and liabilities The Corporation shall, at intervals of five years, have a valuation of its assets and liabilities made by a valuer appointed with the approval of the Central Government: PROVIDED that it shall be open to the Central Government to direct a valuation to be made at such other times as it may consider necessary. CHAPTER IV: CONTRIBUTIONS 38. All employees to be insured

Subject to the provisions of this Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act. 39. Contributions (1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer's contribution) and contribution payable by the employee (hereinafter referred to as the employee's contribution) and shall be paid to the Corporation. [(2) The contributions shall be paid at such rates as may be prescribed by the Central Government: PROVIDED that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees State Insurance (Amendment) Act, 1989.] [(3) The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.] (4) The contributions payable in respect of each 69[wage period] shall ordinarily fall due on the last day of the 69[wage period], and where an employee is employed for part of the 69[wage period], or is employed under two or more employers during the same 69 [wage period], the contributions shall fall due on such days as may be specified in the regulations. (5)(a) If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent per annum or at such higher rate as may be specified in the regulations till the date of its actual payment: PROVIDED that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank. (b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under sections 45C to 45-1. Explanation: In this sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).] 40. Principal employer to pay contributions in the first instance (1) The principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer's contribution and the employee's contribution. (2) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (not being an

exempted employee), be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise: PROVIDED that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee's contribution for the period. (3) Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer's contribution from any wages payable to an employee or otherwise to recover it from him. (4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. (5) The principal employer shall bear the expenses of remitting the contributions to the Corporation. 41. Recovery of contributions from immediate employer (1) A principal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say the employer's contribution as well as the employee's contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer. [(1A) The immediate employer shall maintain register of employees employed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under sub-section (1).] (2) In the case referred to in sub-section (1), the immediate employer shall be entitled to recover the employee's contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to the conditions specified in the proviso to sub-section (2) of section 40. [***] 42. General provisions as to payment of contributions (1) No employee's contribution shall be payable by or on behalf of an employee whose average daily wages 72[during a wage period are below 73[such wages as may be prescribed by the Central Government]]. Explanation: The average daily wages of an employee shall be calculated manner as may be prescribed by the Central Government.]
74

[in such

(2) Contribution (both the employer's contribution and the employee's contribution) shall be payable by the principal employer for each 69[wage period] 75[in respect of the whole or part of which wages are payable to the employee and not otherwise.] 76[(3) * * *] 77 [(4) ******]

43. Method of payment of contribution Subject to the provisions of this Act, the Corporation may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulations may provide for(a) the manner and time of payment of contributions; (b) the payment of contributions by means of adhesive or other stamps affixed to or impressed upon books, cards or otherwise and regulating the manner, times and conditions in, at and under which, such stamps are to be affixed or impressed;
11

[ (bb) the date by which evidence of contributions having been paid is to be received by the Corporation;] (c) the entry in or upon books or cards of particulars of contributions paid and benefits distributed in the case of the insured persons to whom such books or cards relate; and (d) the issue, sale, custody, production, inspection and delivery of books or cards and the replacement of books or cards which have been lost, destroyed or defaced.
78

[44. Employers to furnish returns and maintain registers in certain cases

(1) Every principal and immediate employer shall submit to the Corporation or to such officer of the Corporation as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any factory or establishment in respect of which he is the principal or immediate employer as may be specified in regulations made in this behalf. (2) Where in respect of any factory or establishment the Corporation has reason to believe that a return should have been submitted under sub-section (1) but has not been so submitted, the Corporation may require any person in charge of the factory or establishment to furnish such particulars as it may consider necessary for the purpose of enabling the Corporation to decide whether the factory or establishment is a factory or establishment to which this Act applies. (3) Every principal and immediate employer shall maintain such registers or records in respect of his factory or establishment as may be required by regulations made in this behalf.] 45. Inspectors, their functions and duties (1) The Corporation may appoint such persons as Inspectors, as it thinks fit, for the purposes of this Act, within such local limits as it may assign to them. (2) Any Inspector appointed by the Corporation under sub-section (1) (hereinafter referred to as Inspector), or other official of the Corporation authorised in this behalf by it may, for the purposes of enquiring into the correctness of any of the particulars stated in

any return referred to in section 44 or for the purpose of ascertaining whether any of the provisions of this Act has been complied with(a) require any principal or immediate employer to furnish to him such information as he may consider necessary for the purposes of this Act; or (b) at any reasonable time enter any office, establishment, factory or other premises occupied by such principal or immediate employer and require any person found in charge thereof to produce to such Inspector or other official and allow him to examine such accounts, books and other documents relating to the employment of persons and payment of wages or to furnish to him such information as he may consider necessary; or (c) examine, with respect to any matter relevant to the purposes aforesaid, the principal or immediate employer, his agent or servant, or any person found in such factory, establishment, office or other premises, or any person whom the said Inspector or other official has reasonable cause to believe to be or to have been an employee;
39

[(d) make copies of, or take extracts from, any register, account book or other document maintained in such factory, establishment, office or other premises; (e) exercise such other powers as may be prescribed.] (3) An Inspector shall exercise such functions and perform such duties as may be authorised by the Corporation or as may be specified in the regulations.
79

[45A. Determination of contributions in certain cases

(1) Where in respect of a factory or establishment no returns, particulars, registers or records are submitted, furnished or maintained in accordance with the provisions of section 44 or any Inspector or other official of the Corporation referred to in sub-section 45 is [prevented in any manner] by the principal or immediate employer or any other person, in exercising his functions or discharging his duties under section 45, the Corporation may, on the basis of information available to it, by order, determine the amount of contributions payable in respect of the employees of that factory or establishment: [PROVIDED that no such order shall be passed by the Corporation unless the principal or immediate employer or the person in charge of the factory or establishment has been given a reasonable opportunity of being heard.] (2) An order made by the Corporation under sub-section (1) shall be sufficient proof of the claim of the Corporation under section 75 or for recovery of the amount determined by such order as an arrear of land revenue under section 45B 4[or the recovery under section 45C to section 45-I]]. 45B. Recovery of contributions Any contribution payable under this Act may be recovered as an arrear of land revenue.

81

[45C. Issue of certificate to the Recovery Officer

(1) Where any amount is in arrears under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the factory or establishment or, as the case may be, the principal or immediate employer by one or more of the modes mentioned below(a) attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal or immediate employer; (b) arrest of the employer and his detention in prison; (c) appointing a receiver for the management of the movable or immovable properties of the factory or establishment or, as the case may be, the employer: PROVIDED that the attachment and sale of any property under this section shall first be effected against the properties of the factory or establishment and where such attachment and sale is insufficient for recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of such arrears. (2) The authorised officer may issue a certificate under sub-section (1) notwithstanding that proceedings for recovery of the arrears by any other mode have been taken. 45D. Recovery Officer to whom certificate is to be forwarded (1) The authorised officer may forward the certificate referred to in section 45C to the Recovery Officer within whose jurisdiction the employer(a) carries on his business or profession or within whose jurisdiction the principal place of his factory or establishment is situate; or (b) resides or any movable or immovable property of the factory or establishment or the principal or immediate employer is situate. (2) Where a factory or an establishment or the principal or immediate employer has property within the jurisdiction of more than one Recovery Officers and the Recovery Officer to whom a certificate is sent by the authorised officer(a) is not able to recover the entire amount by the sale of the property, movable or immovable, within his jurisdiction; or (b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount, it is necessary so to do, he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the manner prescribed by the Central Government and specifying the amount to be recovered to the Recovery Officer within whose jurisdiction

the factory or establishment or the principal or immediate employer has property or the employer resides, and thereupon that Recovery Officer shall also proceed to recover the amount due under this section as if the certificate or the copy thereof had been the certificate sent to him by the authorised officer. 45E. Validity of certificate and amendment thereof (1) When the authorised officer issues a certificate to a Recovery Officer under section 45C, it shall not be open to the factory or establishment or the principal or immediate employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer. (2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer. (3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing or cancelling a certificate or any correction made by him under sub-section (2) or any amendment made under sub-section (4) of section 45F. 45F. Stay of proceedings under certificate and amendment or withdrawal thereof (1) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the authorised officer may grant time, for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted. (2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate. (3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been modified in appeal or other proceedings under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject matter of a further proceeding under this Act, the authorised officer shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeals or other proceeding remains pending. (4) Where a certificate for the recovery of amount has been issued and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the authorised officer shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate or withdraw it, as the case may be. 45G. Other modes of recovery (1) Notwithstanding the issue of a certificate to the Recovery Officer under section 45C, the Director General or any other officer authorised by the Corporation may recover the amount by any one or more of the modes provided in this section.

(2) If any amount is due from any person to any factory or establishment or, as the case may be, the principal or immediate employer who is in arrears, the Director General or any other officer authorised by the Corporation in this behalf may require such person to deduct from the said amount the arrears due from such factory or establishment or, as the case may be, the principal or immediate employer under this Act and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Corporation: PROVIDED that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908. (3) (i) The Director General or any other officer authorised by the Corporation in this behalf may, at anytime or from time to time, by notice in writing, require any person from whom money is due or may become due to the factory or establishment or, as the case may be, the principal or immediate employer or any person who holds or may subsequently hold money for or on account of the factory or establishment or, as the case may be, the principal or immediate employer, to pay to the Director General either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due from the factory or establishment or, as the case may be, the principal or immediate employer in respect of arrears or the whole of the money when it is equal to or less than that amount. (ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the principal or immediate employer jointly with any other person and for the purposes of this sub-section, the shares of the joint-holders in such account shall be presumed, until the contrary is proved, to be equal. (iii) A copy of the notice shall be forwarded to the principal or immediate employer at his last address known to the Director General or, as the case may be, the officer so authorised and in the case of a joint account to all the joint-holders at their last addresses known to the Director General or the officer so authorised. (iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made notwithstanding any rule, practice or requirement to the contrary. (v) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice. (vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the principal or immediate employer or that he does not hold any money for or on account of the principal or immediate employer, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may

be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Director General or the officer so authorised to the extent of his own liability to the principal or immediate employer on the date of the notice, or to the extent of the principal or immediate employer's liability for any sum due under this Act, whichever is less. (vii) The Director General or the officer so authorised may, at any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time for making any payment in pursuance of such notice. (viii) The Director General or the officer so authorised shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section and the person so paying shall be fully discharged from his liability to the principal or immediate employer to the extent of the amount so paid. (ix) Any person discharging any liability to the principal or immediate employer after the receipt of a notice under this sub-section shall be personally liable to the Director General or the officer so authorised to the extent of his own liability to the principal or immediate employer so discharged or to the extent of the principal or immediate employer's liability for any sum due under this Act, whichever is less. (x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Director General or the officer so authorised, he shall be deemed to be a principal or immediate employer in default in respect of the amount specified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were an arrear due from him, in the manner provided in sections 45C to 45F and the notice shall have the same effect as an attachment of a debt by the Recovery Officer in exercise of his powers under section 45C. (4) The Director General or the officer authorised by the Corporation in this behalf may apply to the court in whose custody there is money belonging to the principal or immediate employer for payment to him of the entire amount of such money, or if it is more than the amount due, an amount sufficient to discharge the amount due. (5) The Director General or any officer of the Corporation may, if so authorised by the Central Government by general or special order, recover any arrears of amount due from a factory or an establishment or, as the case may be, from the principal or immediate employer by distraint and sale of its or his movable property in the manner laid down in the Third Schedule to the Income-tax Act, 1961. 45H. Application of certain provisions of the Income Tax Act The provisions of the Second and the Third Schedules to the Income Tax Act, 1961 and the Income Tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount of contributions, interests or damages under this Act instead of to the income-tax:

PROVIDED that any reference in the said provisions and the rules to the "assessee" shall be construed as a reference to a factory or an establishment or the principal or immediate employer under this Act. 45I. Definitions For the purposes of sections 45C to 45H: (a) "authorised officer" means the Director General, Insurance Commissioner, Joint Insurance Commissioner, Regional Director or such other officer as may be authorised by the Central Government, by notification in the Official Gazette; (b) "recovery officer" means any officer of the Central Government, State Government or the Corporation, 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.] CHAPTER V: BENEFITS 46. Benefits (1) Subject to the provisions of this Act, the insured persons, 82[their dependants or the persons hereinafter mentioned, as the case may be,] shall be entitled to the following benefits, namely,(a) periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner 83[or by any other person possessing such qualifications and experience as the Corporation may, by regulations, specify in this behalf] (hereinafter referred to as sickness benefit); [(b) periodical payments to an insured woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred to as maternity benefit);] (c) periodical payments to an insured person suffering from disablement as a result of an employment injury sustained as an employee under this Act and certified to be eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred to as disablement benefit); (d) periodical payments to such dependants of an insured person who dies as a result of an employment injury sustained as an employee under this Act, as are entitled to compensation under this Act (hereinafter referred to as dependants' benefit); 85[* * *] (e.) medical treatment for and attendance on insured persons (hereinafter referred to as medical benefit); 86[and [(f) payment to the eldest surviving member of the family of an insured person who has died, towards the expenditure on the funeral of the deceased insured person or, where the insured person did not have a family or was not living with his family at the time of

his death, to the person who actually incurs the expenditure on the funeral of the deceased insured person (to be known as 87[funeral expenses]): PROVIDED that the amount of such payment shall not exceed 88[such amount as may be prescribed by the Central Government] and the claim for such payment shall be made within three months of the death of the insured person or within such extended period as the Corporation or any officer or authority authorised by it in this behalf may allow.] (2) The Corporation may, at the request of the appropriate government, and subject to such conditions as may be laid down in the regulations, extend the medical benefit to the family of an insured person. [47. * * *] 48. When person deemed available for employment [Omitted by Act No. 44 of 1966]
90

[49. Sickness benefit

The qualification of a person to claim sickness benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government. 50. Maternity benefit The qualification of an insured woman to claim maternity benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.]
91

[51. Disablement benefit

Subject to the provisions of this Act 92[* * * *] (a) a person who sustains temporary disablement for not less than three days (excluding the day of accident) shall be entitled to periodical payment 93[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government]; (b) a person who sustains permanent disablement, whether total or partial, shall be entitled to periodical payment 3[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government] :94[* * *] 51A. Presumption as to accident arising in course of employment For the purposes of this Act, an accident arising in the course of an insured person's employment shall be presumed, in the absence of evidence to the contrary, also to have arisen out of that employment. 51B. Accidents happening while acting in breach of regulations, etc.

An accident shall be deemed to arise out of and in the course of an insured person's employment notwithstanding that he is at the time of the accident acting in contravention of the provisions of any law applicable to him, or of any orders given by or on behalf of his employer or that he is acting without instructions from his employer, if (a) the accident would have been deemed so to have arisen had the act not been done in contravention as aforesaid or on without instructions from his employer, as the case may be; and (b) the act is done for the purpose of and in connection with the employer's trade or business. 5IC. Accidents happening while travelling in employer's transport (1) An accident happening while an insured person is, with the express or implied permission of his employer, travelling as a passenger by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if (a) the accident would have been deemed so to have arisen had he been under such obligation; and (b) at the time of the accident, the vehicle (i) is being operated by or on behalf of his employer or some other person by whom it is provided in pursuance of arrangements made with his employer, and (ii) is not being operated in the ordinary course of public transport service. (2) In this section "vehicle" includes a vessel and an aircraft. 51D. Accidents happening while meeting emergency An accident happening to an insured person in or about any premises at which he is for the time-being employed for the purpose of his employer's trade or business shall be deemed to arise out of and in the course of his employment, if it happens while he is taking steps, on an actual or supposed emergency at those premises, to rescue, succour or protect persons who are, or are thought to be or possibly to be, injured or imperilled, or to avert or minimise serious damage to property.]
95

[52. Dependants' benefit

(1) If an insured person dies as a result of an employment injury sustained as an employee under this Act (whether or not he was in receipt of any periodical payment for temporary disablement in respect of the injury) dependants' benefit shall be payable 96[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government] to his dependants specified in 97[sub-clause (i), and sub clause (ia) and] sub-clause (ii) of clause (6A) of section 2.

(2) In case the insured person dies without leaving behind him the dependants as aforesaid, the dependants' benefit shall be paid to the other dependants of the deceased 96 [at such rates and for such period and subject to such conditions as may be prescribed by the Central Government]. 52A. Occupational disease (1) If an employee employed in any employment specified in Part A of the Third Schedule contracts any disease specified therein as an occupational disease peculiar to that employment or if an employee employed in the employment specified in Part B of that Schedule for a continuous period of not less than six months contracts any disease specified therein as an occupational disease peculiar to that employment or if an employee employed in any employment specified in Part C of that Schedule for such continuous period as the Corporation 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, unless the contrary is proved, be deemed to be an 'employment injury' arising out of and in the course of employment. (2)(i) Where the Central Government or a State Government, as the case may be, adds any description of employment to the employments specified in Schedule III to the Workmen's Compensation Act, 1923, by virtue of the powers vested in it under subsection (3) of section 3 of the said Act, the said description of employment and the occupational diseases specified under that sub-section as peculiar to that description of employment shall be deemed to form part of the Third Schedule. (ii) Without prejudice to the provisions of clause (i), the Corporation 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 the Third Schedule 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 this Act shall apply, as if such diseases had been declared by this Act to be occupational diseases peculiar to those employments. (3) Save as provided by sub-sections (1) and (2) no benefit shall be payable to an employee in respect of any disease unless the disease is directly attributable to a specific injury by accident arising out of and in the course of his employment. (4) The provisions of section 51A shall not apply to the cases to which this section applies.]
98

[53. Bar against receiving or recovery of compensation or damages under any other law An insured person or his dependants shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.]

99

[54. Determination of question of disablement

Any question(a) whether the relevant accident has resulted in permanent disablement; or (b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or (c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; or (d) in the case of provisional assessment, as to the period for which such assessment shall hold good, shall be determined by a medical board constituted in accordance with the provisions of the regulations and any such question shall hereafter be referred to as the "disablement question". 54A. References to Medical Boards and appeals to Medical Appeal Tribunals and Employees' Insurance Courts (1) The case of any insured person for permanent disablement benefit shall be referred by the Corporation to a medical board for determination of the disablement question and if, on that or any subsequent reference, the extent of loss of earning capacity of the insured person is provisionally assessed it shall again be so referred to the medical board not later than the end of the period taken into account by the provisional assessment. (2) If the insured person or the Corporation is not satisfied with the decision of the medical board, the insured person or the Corporation may appeal in the prescribed manner and within the prescribed time to(i) the medical appeal tribunal constituted in accordance with the provisions of the regulations with a further right of appeal in the prescribed manner and within the prescribed time to the Employees' Insurance Court, or (ii) the Employees' Insurance Court directly] :
4

[PROVIDED that no appeal by an insured person shall lie under this sub-section if such person has applied for commutation of disablement benefit on the basis of the decision of the medical board and received the commuted of such benefit: PROVIDED FURTHER that no appeal by the Corporation shall lie under this sub-section if the Corporation paid the commuted value of the disablement benefit on the basis of the decision of the medical board.]
100

[55. Review of decisions by Medical Board or Medical Appeal Tribunal

(1) Any decision under this Act of a medical board or a medical appeal tribunal may be reviewed at any time by the medical board or the medical appeal tribunal, as the case may be, if it is satisfied by fresh evidence that the decision was given in consequence of the non-disclosure or mis-representation by the employee or any other person of a material fact (whether the non-disclosure or misrepresentation was or was not fraudulent). (2) Any assessment of the extent of the disablement resulting from the relevant employment injury may also be reviewed by a medical board, if it is satisfied that since the making of the assessment there has been a substantial and unforeseen aggravation of the results of the relevant injury: PROVIDED that an assessment shall not be reviewed under this sub-section unless the medical board is of opinion that having regard to the period taken into account by the assessment and the probable duration of the aggravation aforesaid, substantial injustice will be done by not reviewing it. (3) Except with the leave of a medical appeal tribunal, an assessment shall not be reviewed under sub-section (2) on any application made less than five years, or in the case of a provisional assessment, six months, from the date thereof and on such a review the period to be taken into account by any revised assessment shall not include any period before the date of the application. (4) Subject to the foregoing provisions of this section, a medical board may deal with a case of review in any manner in which it could deal with it on an original reference to it, and in particular may make a provisional assessment notwithstanding that the assessment under review was final; and the provisions of section 54A shall apply to an application for review under this section and to a decision of a medical board in connection with such application as they apply to a case for disablement benefit under that section and to a decision of the medical board in connection with such case. 55A. Review of dependants' benefit (1) Any decision awarding dependants' benefit under this Act may be reviewed at any time by the Corporation if it is satisfied by fresh evidence that the decision was given in consequence of non-disclosure or misrepresentation by the claimant or any other person of a material fact (whether the non-disclosure or misrepresentation was or was not fraudulent) or that the decision is no longer in accordance with this Act due to any birth or death or due to the marriage, re-marriage or cesser of infirmity of, or attainment of the age of eighteen years by, a claimant. (2) Subject to the provisions of this Act, the Corporation may, on such review as aforesaid, direct that the dependants' benefit be continued, increased, reduced or discontinued.] 56. Medical benefit (1) An insured person or (where such medical benefit is extended to his family) a member of his family whose condition requires medical treatment and attendance shall be entitled to receive medical benefit.

(2) Such medical benefit may be given either in the form of out-patient treatment and attendance in a hospital or dispensary, clinic or other institution or by visits to the home of the insured person or treatment as in-patient in a hospital or other institution. (3) A person shall be entitled to medical benefit during any period for which contributions are payable in respect of him or in which he is qualified to claim sickness benefit or maternity benefit 101[or is in receipt of such disablement benefit as does not disentitle him to medical benefit under the regulations]: PROVIDED that a person in respect of whom contribution ceases to be payable under this Act may be allowed medical benefit for such period and of such nature as may be provided under the regulations:
70

[PROVIDED FURTHER that an insured person who ceases to be in insurable employment on account of permanent disablement shall continue, subject to payment of contribution and such other conditions as may be prescribed by the Central Government, to receive medical benefit till the date on which he would have vacated the employment on attaining the age of superannuation had he not sustained such permanent disablement: PROVIDED ALSO that an insured person, who has attained the age of superannuation, and his spouse shall be eligible to receive medical benefit subject to payment of contribution and such other conditions as may be prescribed by the Central Government. Explanation : In this section, "superannuation", in relation to an insured person, means the attainment by that person of such age as is fixed in the contract or conditions of service as the age on the attainment of which he shall vacate the insurable employment or the age of sixty years where no such age is fixed and the person is no more in the insurable employment.] 57. Scale of medical benefit (1) An insured person and (where such medical benefit is extended to his family) his family shall be entitled to receive medical benefit only of such kind and on such scale as may be provided by the State Government or by the Corporation, and an insured person or, where such medical benefit is extended to his family, his family shall not have a right to claim any medical treatment except such as is provided by the dispensary, hospital, clinic or other institution to which he or his family is allotted, or as may be provided by the regulations. (2) Nothing in this Act shall entitle an insured person and (where such medical benefit is extended to his family) his family to claim reimbursement from the Corporation of any expenses incurred in respect of any medical treatment, except as may be provided by the regulations. 58. Provision of medical treatment by State Government (1) The State Government shall provide for insured persons and (where such benefit is extended to their families) their families in the State reasonable medical, surgical and obstetric treatment:

PROVIDED that the State Government may, with the approval of the Corporation, arrange for medical treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may be agreed upon. (2) Where the incidence of sickness benefit payment to insured persons in any State is found to exceed the all-India average, the amount of such excess shall be shared between the Corporation and the State Government in such proportion as may be fixed by agreement between them: PROVIDED that the Corporation may in any case waive the recovery of the whole of any part of the share which is to be borne by the State Government. (3) The Corporation may enter into an agreement with a State Government in regard to the nature and scale of the medical treatment that should be provided to insured persons and (where such medical benefit is extended to the families) their families (including provision of buildings, equipment, medicines and staff ) and for the sharing of the cost thereof and of any excess in the incidence of sickness benefit to insured persons between the Corporation and the State Government. (4) In default of agreement between the Corporation and any State Government as aforesaid the nature and extent of the medical treatment to be provided by the State Government and the proportion in which the cost thereof and of the excess in the incidence of sickness benefit shall be shared between the Corporation and that government, shall be determined by an arbitrator (who shall be or shall have been a Judge of the 102[High Court] 103[of a State] ) appointed by the Chief Justice of India (and the award of the arbitrator) shall be binding on the Corporation and the State Government. 59. Establishment and maintenance of hospitals, etc. by Corporation (1) The Corporation may, with the approval of the State Government, establish and maintain in a State such hospitals, dispensaries and other medical and surgical services as it may think fit for the benefit of insured persons and (where such medical benefit is extended to their families) their families. (2) The Corporation may enter into agreement with any 63[* * * ] local authority, private body or individual in regard to the provision of medical treatment and attendance for insured persons and (where such medical benefit is extended to their families) their families, in any area and sharing the cost thereof.
44

[59A. Provision of medical benefit by the Corporation in lieu of State Government

(1) Notwithstanding anything contained in any other provision of this Act, the Corporation may, in consultation with the State Government, undertake the responsibility for providing medical benefit to insured persons and where such medical benefit is extended to their families, to the families of such insured persons in the State subject to the condition that the State Government shall share the cost of such medical benefit in such proportions may be agreed upon between the State Government and the Corporation.

(2) In the event of the Corporation exercising its power under sub-section (1), the provisions relating to medical benefit under this Act shall apply, so far as may be, as if a reference therein to the State Government were a reference to the Corporation.] GENERAL 60. Benefit not assignable or attachable (1) The right to receive any payment of any benefit under this Act shall not be transferable or assignable. (2) No cash benefit payable under this Act shall be liable to attachment or sale in execution of any decree or order of any Court. 61. Bar of benefits under other enactments When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment. 62. Persons not to commute cash benefits Save as may be provided in the regulations, no person shall be entitled to commute for a lump sum any 104[disablement benefit] admissible under this Act.
105

[63. Persons not entitled to receive benefit in certain cases

Save as may be provided in the regulations, no person shall be entitled to sickness benefit or disablement benefit for temporary disablement on any day on which he works or remains on leave or on a holiday in respect of which he receives wages or on any day on which he remains on strike.] 64. Recipients of sickness or disablement benefit to observe conditions A person who is in receipt of sickness benefit or disablement benefit (other than benefit granted on permanent disablement)(a) shall remain under medical treatment at a dispensary, hospital, clinic or other institution provided under this Act and shall carry out the instructions given by the medical officer or medical attendant in charge thereof; (b) shall not while under treatment do anything which might retard or prejudice his chances of recovery; (c) shall not leave the area in which medical treatment provided by this Act is being given, without the permission of the medical officer, medical attendant or such other authority as may be specified in this behalf by the regulations; and

(d) shall allow himself to be examined by any duly appointed medical officer other person authorised by the Corporation in this behalf. 65. Benefits not to be combined (1) An insured person shall not be entitled to receive for the same period(a) both sickness benefit and maternity benefit; or

106

[* * *] or

(b) both sickness benefit and disablement benefit for temporary disablement; or (c) both maternity benefit and disablement benefit for temporary disablement. (2) Where a person is entitled to more than one of the benefits mentioned in sub-section (1), he shall be entitled to choose which benefit he shall receive. 66. Corporation's right recover damages from employer in certain cases [Omitted by Act No. 44 of 1966, section 29, w.e.f. 17th., June, 1967] 67. Corporations right to be indemnified in certain cases [Omitted by Act No. 44 of 1966, section 29 w. e.f. 17th., June, 1967] 68. Corporation's rights where a principal employer fails or neglects to pay any contribution (1) If any principal employer fails or neglects to pay any contribution which under this Act he is liable to pay in respect of any employee and by reason thereof such person becomes disentitled to any benefit or entitled to a benefit on a lower scale, the Corporation may, on being satisfied that the contribution should have been paid by the principal employer, pay to the person the benefit at the rate to which he would have been entitled, if the failure or neglect had not occurred and the Corporation shall be entitled to recover from the principal employer either107

[(i) the difference between the amount of benefit which is paid by the Corporation to the said person and the amount of the benefit which would have been payable on the basis of the contributions which were in fact paid by the employer; or] (ii) twice the amount of the contribution which the employer failed or neglected to pay whichever is greater. (2) The amount recoverable under this section may be recovered as if it were an arrear of land revenue 4[or under section 45C to section 45I]. 69. Liability of owner or occupier of factories, etc. for excessive sickness benefit (1) Where the Corporation considers that the incidence of sickness among insured persons is excessive by reason of-

(i) in sanitary working conditions in a factory or establishment or the neglect of the owner or occupier of the factory or establishment to observe any health regulations enjoined on him or under any enactment; or (ii) in sanitary conditions of any tenements or lodgings occupied by insured persons and such in sanitary conditions are attributable to the neglect of the owner of the tenements or lodgings to observe any health regulations enjoined on him by or under any enactment, the Corporation may send to the owner or occupier of the factory or establishment or to the owner of the tenements or lodgings, as the case may be, a claim for the payment of the amount of the extra expenditure incurred by the Corporation as sickness benefit; and if the claim is not settled by agreement, the Corporation may refer the matter with a statement in support of its claim, to the appropriate government. (2) If the appropriate government is of opinion that a prima facie case for inquiry is disclosed, it may appoint a competent person or persons to hold an inquiry into the matter. (3) If upon such inquiry it is proved to the satisfaction of the person or persons holding the inquiry that the excess in incidence of sickness among the insured persons is due to the default or neglect of the owner or occupier of the factory or establishment or the owner of the tenements or lodgings, as the case may be, the said person or persons shall determine the amount of the extra expenditure incurred as sickness benefit, and the person or persons by whom the whole or any part of such amount shall be paid to the Corporation. (4) A determination under sub-section (3) may be enforced as if it were a decree for payment of money passed in a suit by a Civil Court. (5) For the purposes of this section, "owner" of tenements or lodgings shall include any agent of the owner and any person who is entitled to collect the rent of the tenements or lodgings as a lessee of the owner. 70. Repayment of benefit improperly received (1) Where any person has received any benefit or payment under this Act when he is not lawfully entitled thereto, he shall be liable to repay to the Corporation the value of the benefit or the amount of such payment, or in the case of his death his representative shall be liable to repay the same from the assets of the deceased, if any, in his hands. (2) The value of any benefits received other than cash payments shall be determined by such authority as may be specified in the regulations made in this behalf and the decision of such authority shall be final. (3) The amount recoverable under this section may be recovered as if it were an arrear of land revenue 4[or under section 45C to section 45I]. 71. Benefit payable up to and including day of death

108

[ If a person dies], during any period for which he is entitled to a cash benefit under this Act, the amount of such benefit up to and including the day of his death shall be paid to any person nominated by the deceased person in writing in such form as may be specified in the regulations or, if there is no such nomination, to the heir or legal representative of the deceased person. 72. Employer not to reduce wages, etc. No employer by reason only of his liability for any contributions payable under this Act shall, directly or indirectly, reduce the wages of any employee, or except as provided by the regulations, discontinue or reduce benefits payable to him under the conditions of his service which are similar to the benefits conferred by this Act. 73. Employer not to dismiss or punish employee during period of sickness, etc. (1) No employer shall dismiss, discharge, or reduce or otherwise punish an employee during the period the employee is in receipt of sickness benefit or maternity benefit, nor shall he, except as provided under the regulations, dismiss, discharge or reduce or otherwise punish an employee during the period he is in receipt of disablement benefit for temporary disablement or is under medical treatment for sickness or is absent from work as a result of illness duly certified in accordance with the regulations to arise out of the pregnancy or confinement rendering the employee unfit for work. (2) No notice of dismissal or discharge or reduction given to an employee during the period specified in sub-section (1) shall be valid or operative.
109

[CHAPTER V-A: TRANSITORY PROVISIONS

73A. Employer's special contribution (1) For so long as the provisions of this Chapter are in force, every principal employer shall, notwithstanding anything contained in this Act, pay to the Corporation a special contribution (hereinafter referred to as the employer's special contribution) at the rate specified under sub-section (3). (2) The employer's special contribution shall, in the case of a factory or establishment situate in any area in which the provisions of both Chapters IV and V are in force, be in lieu of the employer's contribution payable under Chapter IV. (3) The employer's special contribution shall consists of such percentage, not exceeding five per cent of total wage bill of the employer, as the Central Government may, by notification in the Official Gazette, specify from time to time: ROVIDED that before fixing or varying any such percentage the Central Government shall give by like notification not less than two months' notice of its intention so to do and shall in such notification specify the percentage which it proposes to fix or, as the case may be, the extent to which the percentage already fixed is to be varied :

PROVIDED FURTHER that the employer's special contribution in the case of factories or establishments situate in any area in which the provisions of both Chapters IV and V are in force shall be fixed at a rate higher than that in the case of factories or establishments situate in any area in which the provisions of the said Chapters are not in force. (4) The employer's special contribution shall fall due as soon as the liability of the employer to pay wages accrues, but may be paid to the Corporation at such intervals, within such time and in such manner as the Central Government may, by notification in the Official Gazette, specify, and any such notification may provide for the grant of a rebate for prompt payment of such contribution. Explanation: "Total wage bill" in this section means the total wages which have accrued due to employees in a factory or establishment in respect of such wage periods as may be specified for the purposes of this section by the Central Government by notification in the Official Gazette. 73B. Special tribunals for decision of disputes or questions under this Chapter where there is no Employees' Insurance Court (1) If any question or dispute arises in respect of the employer's special contribution payable or recoverable under this Chapter and there is no Employees' Insurance Court having jurisdiction to try such question or dispute, the question or dispute shall be decided by such authority as the Central Government may specify in this behalf. (2) The provisions of sub-section (1) of section 76, sections 77 to 79 and 81 shall, so far as may be, apply in relation to a proceeding before an authority specified under subsection (1) as they apply in relation to a proceeding before an Employees' Insurance Court. 73C. Benefits under Chapter V to depend upon employee's contribution The payment of the employee's contribution for any week in accordance with the provisions of Chapter IV in any area where all the provisions of that Chapter are in force shall, for the purpose of Chapter V, have effect as if the contributions payable under Chapter IV in respect of that employee for that week had been paid, and shall accordingly entitle the employee as an insured person to the benefits specified in Chapter V if he is otherwise entitled thereto. Explanation : In the case of an exempted employee, the employee's contribution shall be deemed to have been paid for a week if the Corporation is satisfied that during that week the employer's contribution under Chapter IV would have been payable in respect of him but for the provisions of this Chapter. 73D. Mode of recovery of employer's special contribution The employer's special contribution payable under this Chapter may be recovered as if it were an arrear of land revenue. 73E. Power to call for additional information or return

Without prejudice to the other provisions contained in this Act, the Corporation may, for the purpose of determining whether the employer's special contribution is payable under this Chapter or for determining the amount thereof, by general or special order, require any principal or immediate employer or any other person to furnish such information or returns to such authority, in such form and within such time as may be specified in the order. 73F. Power to exempt to be exercised by Central Government alone in respect of employer's special contributions Notwithstanding anything contained in this Act, the Central Government may, having regard to size or location of, or the nature of the industry carried on, in any factory or establishment or class of factories or establishments, exempt the factory or establishment or class of factories or establishments from the payment of the employer's special contribution under this Chapter and nothing contained in sections 87 to 91 (inclusive) shall be deemed to authorise any State Government to grant any such exemption. 73G. Application of certain provisions of this Act to employer's special contribution Save as otherwise expressly provided in this Chapter, the provisions of Chapter IV, section 72 and Chapter VII and any rules and regulations made under this Act shall, so far as may be, apply in relation to the payment or recovery of employer's special contributions, the penalties specified in connection therewith and all other matters incidental thereto as they would have applied in relation to an employer's contribution if this Chapter were not in force and the employer's contribution had been payable under this Act. 73H. Power to remove difficulties [Repealed by the Act No. 44 of 1966, w.e.f. 17th., June, 1967.] 73-I. Duration of Chapter VA The Central Government may, by [notification in the Official Gazette, (vide SO No. 173(E) dated 26th., March, 1973)] direct that the provisions of this Chapter shall cease to have effect on such date as may be specified in the notification, not being a date earlier than three months from the date of the notification: PROVIDED that on the provisions of this Chapter so ceasing to have effect the provisions of section 6 of the General Clauses Act, 1897, shall apply as if the provisions of this Chapter had then been repealed by a Central Act.] CHAPTER VI: ADJUDICATION OF DISPUTE AND CLAIMS 74. Constitution of Employees' Insurance Court

(1) The State Government shall, by notification in the Official Gazette, constitute an Employees' Insurance Court for such local area as may be specified in the notification. (2) The Court shall consist of such number of Judges as the State Government may think fit. (3) Any person who is or has been a judicial officer or is a legal practitioner of five years' standing shall be qualified to be a Judge of the Employees' Insurance Court. (4) The 8[State] Government may appoint the same Court for two or more local areas or two or more Courts for the same local area. (5) Where more than one Court has been appointed for the same local area, the State Government may by general or special order regulate the distribution of business between them. 75. Matters to be decided by Employees' Insurance Court (1) If any question or dispute arises as to(a) whether any person is an employee within the meaning of this Act or whether he is liable to pay the employee's contribution, or (b) the rate of wages or average daily wages of an employee for the purposes of this Act, or (c) the rate of contribution payable by a principal employer in respect of any employee, or (d) the person who is or was the principal employer in respect of any employee, or (e) the right of any person to any benefit and as to the amount and duration thereof, or
110

[(ee) any direction issued by the Corporation under section 55A on a review of any payment of dependants benefits, or] 111[* * *] (g) any other matter which is in dispute between a principal employer and the Corporation, or between a principal employer and an immediate employer or between a person and the Corporation or between an employee and a principal or immediate employer, in respect of any contribution or benefit or other dues payable or recoverable under this Act, 11[or any other matter required to be or which may be decided by the Employees' Insurance Court under this Act,] such question or dispute 11[subject to the provision of sub-section (2A)] shall be decided by the Employees' Insurance Court in accordance with the provisions of this Act. (2) 112[Subject to the provisions of sub-section (2A), the following claims] shall be decided by the Employees' Insurance Court, namely:-

(a) claim for the recovery of contributions from the principal employer; (b) claim by a principal employer to recover contributions from any immediate employer;113[* * *]; (d) claim against a principal employer under section 68; (e) claim under section 70 for the recovery of the value or amount of the benefits received by a person when he is not lawfully entitled thereto; and (f) any claim for the recovery of any benefit admissible under this Act.
114

[(2A) If in any proceedings before the Employees' Insurance Court a disablement question arises and the decision of a medical board or a medical appeal tribunal has not been obtained on the same and the decision of such question is necessary for the determination of the claim or question before the Employees' Insurance Court, that Court shall direct the Corporation to have the question decided by this Act and shall thereafter proceed with the determination of the claim or question before it in accordance with the decision of the medical board or the medical appeal tribunal, as the case may be, except where an appeal has been filed before the Employees' Insurance Court under subsection (2) of section 54A in which case the Employees' Insurance Court may itself determine all the issues arising before it.]
4

[(2B) No matter which is in dispute between a principal employer and the Corporation in respect of any contribution or any other dues shall be raised by the principal employer in the Employees' Insurance Court unless he has deposited with the Court fifty per cent of the amount due from him as claimed by the Corporation: PROVIDED that the Court may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this sub-section.] (3) No Civil Court shall have jurisdiction to decide or deal with any question or dispute as aforesaid or to adjudicate on any liability which by or under this Act is to be decided by 115 [a medical board, or by a medical appeal tribunal or by the Employees' Insurance Court.] 76. Institution of proceedings, etc. (1) Subject to the provisions of this Act and any rules made by the State Government, all proceedings before the Employees' Insurance Court shall be instituted in the Court appointed for the local area in which the insured person was working at the time the question or dispute arose. (2) If the Court is satisfied that any matter arising out of any proceeding, pending before it can be more conveniently dealt with by any other Employees Insurance Court in the same State, it may, subject to any rules made by the State Government in this behalf, order such matter to be transferred to such other Court for disposal and shall forthwith transmit to such other Court the records connected with that matter.

(3) The State Government may transfer any matter pending before any Employees' Insurance Court in the State to any such Court in another State with the consent of the State Government of that State. (4) The Court to which any matter is transferred under sub-section(2) or sub-section (3) shall continue the proceedings as if they had been originally instituted in it. 77. Commencement of proceedings (1) The proceedings before an Employees' Insurance Court shall be commenced by application.
11

[(1A) Every such application shall be made within a period of three years from the date on which the cause of action arose. Explanation : For the purpose of this sub-section,(a) the cause of action in respect of a claim for benefit shall not be deemed to arise unless the insured person or in the case of dependants' benefit, the dependants of the insured person claims or claim that benefit in accordance with the regulations made in that behalf within a period of twelve months after the claim became due or within such further period as the Employees' Insurance Court may allow on grounds which appear to it to be reasonable;
116

[(b) the cause of action in respect of a claim by the Corporation for recovering contributions (including interest and damages) from the principal employer shall be deemed to have arisen on the date on which such claim is made by the Corporation for the first time: PROVIDED that no claim shall be made by the Corporation after five years of the period to which the claim relates; (c) the cause of action in respect of a claim by the principal employer for recovering contributions from an immediate employer shall not be deemed to arise till the date by which the evidence of contributions having been paid is due to be received by the Corporation under the regulations.]] (2) Every such application shall be in such form and shall contain such particulars and shall be accompanied by such fee, if any, as may be prescribed by rules made by the State Government in consultation with the Corporation. 78. Powers of Employees' Insurance Court (1) The Employees' Insurance Court shall have all the powers of a Civil Court for the purposes of summoning and enforcing the attendance of witnesses, compelling the discovery and production of documents and material objects, administering oath and recording evidence and such Court shall be deemed to be a Civil Court within the meaning of 117[section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973].

(2) The Employees' Insurance Court shall follow such procedure as may be prescribed by rules made by the State Government. (3) All costs incidental to any proceeding before an Employees' Insurance Court shall, subject to such rules as may be made in this behalf by the State Government, be in the discretion of the Court. (4) An order of the Employees' Insurance Court shall be enforceable as if it were a decree passed in a suit by a Civil Court. 79. Appearance by legal practitioners, etc. Any application, appearance or act required to be made or done by any person to or before an Employees' Insurance Court (other than appearance of a person required for the purpose of his examination as a witness) may be made or done by a legal practitioner or by an officer of a registered trade, union authorised in writing by such person or with the permission of the Court, by any other person so authorised. 80. Benefit not admissible unless claimed in time [Omitted by Act No. 44 of 1966, section 34, w.e.f. 28th., January, 1968.] 81. Reference to High Court An Employees' Insurance Court may submit any question of law for the decision of the High Court and if it does so shall decide the question pending before it in accordance with such decision. 82. Appeal (1) Save as expressly provided in this section, no appeal shall lie from an order of an Employees' Insurance Court. (2) An appeal shall lie to the High Court from an order of an Employees' Insurance Court if it involves substantial question of law. (3) The period of limitation for an appeal under this section shall be sixty days. (4) The provisions of sections 5 and 12 of the appeals under this section. 83. Stay of payment pending appeal Where the Corporation has presented an appeal against an order of the Employees' Insurance Court, that Court may, and if so directed by the High Court shall, pending the decision of the appeal, withhold the payment of any sum directed to be paid by the order appealed against. CHAPTER VII: PENALTIES
118

[Limitation Act, 1963] shall apply to

84. Punishment for false statements Whoever, for the purpose of causing any increase in payment or benefit under this Act, or for the purpose of causing any payment or benefit to be made where no payment or benefit is authorised by or under this Act, or for the purpose of avoiding any payment to be made by himself under this Act or enabling any other person to avoid any 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 119 [six months], or with fine not exceeding 120[two thousand] rupees, or with both.
70

[PROVIDED that where an insured person is convicted under this section, he shall not be entitled for any cash benefit under this Act for such period as may be prescribed by the Central Government.] 85. Punishment for failure to pay contributions, etc. If any person(a) fails to pay any contribution which under this Act he is liable to pay, or (b) deducts or attempts to deduct from the wages of an employee the whole or any part of the employer's contribution, or (c) in contravention of section 72 reduces the wages or any privileges or benefits admissible to an employee, or (d) in contravention of section 73 or any regulation dismisses, discharges, reduces or otherwise punishes an employee, or (e) fails or refuses to submit any return required by the regulations, or makes a false return, or (f) obstructs any Inspector or other official of the Corporation in the discharge of his duties, or (g) is guilty of any contravention of or non-compliance with any of the requirements of this Act or the rules or the regulations in respect of which no special penalty is provided,
121

[he shall be punishable-

122

[(i) where he commits an offence under clause (a), with imprisonment for a term which may extend to three years but (a) which shall not be less than one year, in case of failure to pay the employee's contribution which has been deducted by him from the employee's wages and shall also be liable to fine of ten thousand rupees; (b) which shall not be less than six months, in any other case and shall also be liable to fine of five thousand rupees:

PROVIDED that the Court may, for any adequate and special reasons to be recorded in the judgement, impose a sentence of imprisonment for a lesser term; (ii) where he commits an offence under any of the clauses (b) to (g) (both inclusive), with imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both.]
123

[85A. Enhanced punishment in certain cases after previous conviction

Whoever, having been convicted by a court of an offence punishable under this Act, commits the same offence shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to 124[two years and with fine of five thousand rupees]: PROVIDED that where such subsequent offence is for failure by the employer to pay any contribution which under this Act he is liable to pay, he shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to 125 [five years but which shall not be less than two years and shall also be liable to fine of twenty-five thousand rupees.]
123

[85B. Power to recover damages

(1) Where an employer fails to pay the amount due in respect of any contribution or any other amount payable under this Act, the Corporation may recover 126[from the employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the regulations]: PROVIDED that before recovering such damages, the employer shall be given a reasonable opportunity of being heard :
127

[PROVIDED FURTHER that the Corporation may reduce or waive the damages recoverable under this section in relation to an establishment which is a sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985, subject to such terms and conditions as may be specified in regulations.] (2) Any damages recoverable under sub-section(I) may be recovered as an arrear of land revenue 127[or under section 45C to section 45-I]. 85C. Power of Court to make orders (1) Where an employer is convicted of an offence for failure to pay any contribution payable under this Act, the Court may, in addition to awarding any punishment by order, in writing require him within a period specified in the order (which the Court may if it thinks fit and on application in that behalf, from time to time, extend), to pay the amount of contribution in respect of which the offence was committed, 127[and to furnish the return relating to such contributions].

(2) Where an order is made under sub-section (I), the employer shall not be liable under this Act in respect of the continuation of the offence during the period or extended period, if any, allowed by the Court, but if, on the expiry of such period or extended period, as the case may be, the order of the Court has not been fully complied with, the employer shall be deemed to have committed a further offence and shall be punishable with imprisonment in respect thereof under section 85 and shall also be liable to pay fine which may extend to 128[one thousand rupees] for every day after such expiry on which the order has not been complied with.] 86. Prosecutions (1) No prosecution under this Act shall be instituted except by or with the previous sanction of the Insurance Commissioner 39[or of such other officer of the Corporation as may be authorised in this behalf by the 129[Director-General of the Corporation]].
130

[(2) No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try any offence under this Act.] (3) No court shall take cognisance of any offence under this Act except on a complaint made in writing in respect thereof 131[* * *].
4

[86A. 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 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 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 with the consent or connivance of, or is attributable to, any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall 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, (i) "company" means any body corporate and includes a firm and other associations of individuals; and (ii) "director" in relation to(a) a company, other than a firm, means the managing director or a whole-time director; (b) a firm means a partner in the firm.]

CHAPTER VIII: MISCELLANEOUS 87. Exemption of a factory or establishment or class of factories or establishments The appropriate government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time. 88. Exemption of persons or class of persons The appropriate government may, by notification in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any person or class of persons employed in any factory or establishment, or class of factories or establishments to which this Act applies from the operation of the Act. 89. Corporation to make representation No exemption shall be granted or renewed under section 87 or section 88, unless a reasonable opportunity has been given to the Corporation to make any representation it may wish to make in regard to the proposal and such representation has been considered by the appropriate government. 90. Exemption of factories or establishments belonging to government or any local authority The appropriate government may, 44[after consultation with the Corporation,] by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment belonging to 132[* * *] any local authority, 44[from the operation of the Act], if the employees in any such factory or establishment are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act. 91. Exemption from one or more provisions of the Act The appropriate government may, with the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of employees in any factory or establishment or class of factories or establishments from one or more of the provisions relating to the benefits provided under this Act.
44

[91A. Exemptions to be either prospective or retrospective

Any notification granting exemption under section 87, section 88, section 90 or section 91 may be issued so as to take effect either prospectively or retrospectively on such date as may be specified therein.]
184

[91B. Misuse of benefits

If the Central Government is satisfied that the benefits under this Act are being misused by insured persons in a factory or establishment, that Government may, by order, published in the Official Gazette, disentitle such persons from such of the benefits as it thinks fit: PROVIDED that no such order shall be passed unless a reasonable opportunity of being beard is given to the concerned factory or establishment, insured persons and the trade unions registered under the Trade Unions Act, 1926 having members in the factory or establishment. 91C. Writing off of losses Subject to the conditions as may be prescribed by the Central Government, where the Corporation is of opinion that the amount of contribution, interest and damages due to the Corporation is irrecoverable, the Corporation may sanction the writing off finally of the said amount.] 92. Power of Central Government to give directions
133

[(1) The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.
39

[(2) The Central Government may, from time to time, give such directions to the Corporation as it may think fit for the efficient administration of the Act, and if any such direction is given, the Corporation shall comply with such direction.] 93. Corporation officers and servants to be public servants All officers and servants of the Corporation shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.
39

[93A. Liability in case of transfer of establishment

Where an employer, in relation to a factory or establishment transfers that factory or establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer: PROVIDED that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.] 94. Contributions, etc., due to Corporation to have priority over other debts There shall be deemed to be included among the debts which, under section 49 of the Presidency-Towns Insolvency Act, 1909, or under section 61 of the Provincial Insolvency Act,1920, 134[or under any law relating to insolvency in force 134[in the territories which, immediately before the lst November, 1956 were comprised in a Part B State] ], 135[or

under section 530 of the Companies Act, 1956], are in the distribution of the property of the insolvent or in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, the amount due in respect of any contribution or any other amount payable under this Act the liability where for accrued before the date of the order of adjudication of the insolvent or the date of the winding up, as the case may be.
134

[94A. Delegation of powers

The Corporation, and, subject to any regulations made by the Corporation in this behalf, the Standing Committee may direct that all or any of the powers and functions which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by any officer or authority subordinate to the Corporation.] 95. Power of Central Government to make rules (1) The Central Government may 11[after consultation with the Corporation and] subject to the condition of previous publication, make rules not inconsistent with this Act for the purpose of giving effect to the provisions thereof. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matter, namely,137

[(a) the limit of wages beyond which a person shall not be deemed to be an employee;

(ab) the limit of maximum monthly salary for the purpose of sub-section (1) of section 17;]
137

[(ac) the manner in which 138[appointments] and elections of members of the Corporation, the Standing Committee and the Medical Benefit Council shall be made; (b) the quorum at meetings of the Corporation, the Standing Committee and the Medical Benefit Council and the minimum number of meetings of those bodies to be held in a year. (c) the records to be kept of the transaction of business by the Corporation, the Standing Committee and the Medical Benefit Council; (d) the powers and duties of the 61[Director General and the Financial Commissioner] and the conditions of their service; (e) the powers and duties of the Medical Benefit Council;
139

[(ea) the types of expenses which may be termed as administrative expenses, the percentage of income of the Corporation which may be spent for such expenses; (eb) the rates of contributions and limits of wages below which employees are not liable to pay ontribution;

(ec) the manner of calculation of the average daily wage; (ed) the manner of certifying the certificate to recover amount by the Recovery Officer. (ee) the amount of funeral expenses; (ef) the qualifications, conditions, rates and period of sickness benefit, maternity benefit, disablement benefit and dependants benefit; (eg) the conditions for grant of medical benefits for insured persons who cease to be in insurable employment on account of permanent disablement; (eh) the conditions for grant of medical benefits for persons who have attained the age of superannuation;]
139

[(ei) the manner in which and the time within which appeals may be filed to medical appeal tribunals or Employees' Insurance Courts;] (f) the procedure to be adopted in the execution of contracts; (g) the acquisition, holding and disposal of property by the Corporation; (h) the raising and repayment of loans; (i) the investment of the funds of the Corporation and of any provident or other benefit fund and their transfer or realisation; (j) the basis on which the periodical valuation of the assets and liabilities of the Corporation shall be made; (k) the bank or banks in which the funds of the Corporation may be deposited, the procedure to be followed in regard to the crediting of moneys accruing or payable to the Corporation and the manner in which any sums may be paid out of the Corporation funds and the officers by whom such payment may be authorised; (l) the accounts to be maintained by the Corporation and the forms in which such accounts shall be kept and the times at which such accounts shall be audited; (m) the publication of the accounts of the Corporation and the report of auditors, the action to be taken on the audit report, the powers of auditors to disallow and surcharge items of expenditure and the recovery of sum so disallowed or surcharged; (n) the preparation of budget estimates and of supplementary estimates and the manner in which such estimates shall be sanctioned and published; (o) the establishment and maintenance of provident or other benefit fund for officers and servants of the Corporation; 140[***]

[(oa) the period of non-entitlement for cash benefit in case of conviction of an insured person;] (p) any matter which is required or allowed by this Act to be prescribed by the Central Government.
141

[(2A) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them but no retrospective effect shall be given to any rule so as to prejudicially affect the interest of any person other than the Corporation to whom such rule may be applicable.] (3) Rules made under this section shall be published in the Official Gazette and thereupon shall have effect as if enacted in this Act.
11

[(4) 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 142[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.] 96. Power of State Government to make rules (1) The State Government may, 11[after consultation with the Corporation], subject to the condition of previous publication, make rules not inconsistent with this Act in regard to all or any of the following matters, namely(a) the constitution of Employees' Insurance Courts, the qualifications of persons who may be appointed Judges thereof, and the conditions of service of such Judges; (b) the procedure to be followed in proceedings before such Courts and the execution of orders made by such Courts; (c) the fee payable in respect of applications made to the Employees' Insurance Court, the costs incidental to the proceedings in such Court, the form in which applications should be made to it and the particulars to be specified in such applications; (d) the establishment of hospitals, dispensaries and other institutions, the allotment of insured persons or their families to any such hospital, dispensary or other institution; (e) the scale of medical benefit which shall be provided at any hospital, clinic, dispensary or institution, the keeping of medical records and the furnishing of statistical returns; the nature and extent of the staff, equipment and medicines that shall be provided at such hospitals, dispensaries and institutions;

(g) the conditions of service of the staff employed at such hospitals, dispensaries and institutions; and (h) any other matter which is required or allowed by this Act to be prescribed by the State Government. (2) Rules made under this section shall be published in the Official Gazette and thereupon shall have effect as if enacted in this Act.
141

[(3) Every rule made under this section shall be laid as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or, where such Legislature consists of one House, before that House.] 97. Power of Corporation to make regulations (1) The Corporation may, 143[* * *] subject to the condition of previous publication, make regulations, not inconsistent with this Act and the rules made thereunder, for the administration of the affairs of the Corporation and for carrying into effect the provisions of this Act. 2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely(i) the time and place of meetings of the Corporation, the Standing Committee and the Medical Benefit Council and the procedure to be followed at such meetings;
11

[(ia) the time within which and the manner in which a factory or establishment shall be registered;] (ii) the matters which shall be referred by the Standing Committee to the Corporation for decision; (iii) the manner in which any contribution payable under this Act shall be assessed and collected;
144

[(iiia) the rate of interest higher than twelve per cent on delayed payment of contributions,] (iv) reckoning of wages for the purpose of fixing the contribution payable under this Act;
4

[(iva) the register of employees to be maintained by the immediate employer;

(ivb) the entitlement of sickness benefit or disablement benefit for temporary disablement on any day on which person works or remains on leave or on holiday and in respect of which he receives wages or for any day on which he remains on strike;] (v) the certification of sickness and eligibility for any cash benefit;

145

[(vi) the method of determining whether an insured person is suffering from one or more of the diseases specified in the Third Schedule;] (vii) the assessing of the money value of any benefit which is not a cash benefit; (viii) the time within which 146[and the form and manner in which] any claim for a benefit may be made and the particulars to be specified in such claim; (ix) the circumstances in which an employee in receipt of disablement benefit may be dismissed, discharged, reduced or otherwise punished; (x) the manner in which and the place and time at which any benefit shall be paid; (xi) the method of calculating the amount of cash benefit payable and the circumstances in which and the extent to which commutation of disablement and dependant's benefits, may be allowed and the method of calculating the commutation value; (xii) the notice of pregnancy or of confinement and notice and proof of sickness;
11

[(xiia) specifying the authority competent to give certificate of eligibility for maternity benefit; (xiib) the manner of nomination by an insured woman for payment of maternity benefit in case of her or her child's death; (xiic) the production of proof in support of claim for maternity benefit or additional maternity benefit;] (xiii) the conditions under which any benefit may be suspended; (xiv) the conditions to be observed by a person when in receipt of any benefit and the periodical medical examination of such person; (xv) 147[***] (xvi) the appointment of medical practitioners for the purposes of this Act, the duties of such practitioners and the form of medical certificates;
148

[(xvia) the qualifications and experience which a person should possess for giving certificate of sickness; (xvib) the constitution of medical boards and medical appeal tribunals;] (xvii) the penalties for breach of regulations by fine (not exceeding two days' wages for a first breach and not exceeding three days' wages for any subsequent breach) which may be imposed on employees;
149

[(xviia) the amount of damages to be recovered as penalty;

(xviib) the terms and conditions for reduction or waiver of damages in relation to a sick industrial company;] (xviii) the circumstances in which and the conditions subject to which any regulation may be relaxed, the extent of such relaxation, and the authority by whom such relaxation may be granted; [(xix) the returns to be submitted and the registers or records to be maintained by the principal and immediate employers, the forms of such returns, registers or records, and the times at which such returns should be submitted and the particulars which such returns, registers and records should contain;] (xx) the duties and powers of Inspectors and other officers and servants of the Corporation; [(xxi) the method of recruitment, pay and allowances, discipline, superannuation benefits and other conditions of service of the officers and servants of the Corporation other than the 151[Director General and Financial Commissioner;] (xxii) the procedure to be followed in remitting contributions to the Corporation; and (xxiii) any matter in respect of which regulations are required or permitted to be made by this Act.
39 150 150

(2A) The condition of previous publication shall not apply to any regulations of the nature specified in clause (xxi) of sub-section (2).] (3) Regulations made by the Corporation shall be published in the Gazette of India and thereupon shall have effect as if enacted in this Act.
141

[(4) Every regulation shall, as soon as may be, after it is made by the Corporation, be forwarded to the Central Government and the government shall cause a copy of the same to be laid 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 regulation or both Houses agree that the regulation should not be made, the regulation 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 regulation.] 98. Corporation may undertake duties in Part B States [Repealed by Act No. 53 of 1951, section 26.]
19

[99. Medical care for the families of insured persons

At any time when its funds so permit, the Corporation may provide or contribute towards the cost of medical care for the families of insured persons.]

44

[99A. Power to remove difficulties

(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions, not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty. (2) Any order made under this section shall have effect notwithstanding anything inconsistent therewith in any rules or regulations made under this Act.]
39

[100. Repeal and saving

If, immediately before the day on which this Act comes into force 152[in any part of the territories which, immediately before the lst November, 1956, were comprised in a Part B State], there is in force in 153[that part] any law corresponding to this Act, that law shall, on such day, stand repealed: PROVIDED that the repeal shall not affect(a) the previous operations of any such law, or (b) any penalty, forfeiture or punishment incurred in respect of any offence committed against any such law; or (c) any investigation or remedy in respect of any such penalty, forfeiture or punishment; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed, as if this Act had not been passed: PROVIDED FURTHER that subject to the preceding proviso anything done or any action taken under any such law shall be deemed to have been done or taken under the corresponding provision of this Act and shall continue in force accordingly unless and until superseded by anything done or any action taken under this Act.]

SCHEDULE I: 154[* * *]

155

[SCHEDULE II

[Section 2 (15A) and (15B)] PART I: LIST OF INJURIES DEEMED TO RESULT IN PERMANENT TOTAL DISABLEMENT S. No. Description of injury % age of loss of

earning capacity 1. 2. 3. 4. 5. 6. Loss of both hands or amputation at higher sites Loss of a hand and a foot 100 100

Double amputation through leg or thigh, or amputation 100 through leg or thigh on one side and loss of other foot Loss of sight to such an extent as to render the claimant 100 unable to perform any work for which eyesight is essential Very severe facial disfigurement Absolute deafness 100 100

PART II: LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT Amputation-Upper limbs (either arm) S. No. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
4

Description of injury Amputation through shoulder joint

%age of loss of earning capacity 90

Amputation below shoulder with stump less than 20.32 80 cm from tip of acrimion Amputation from 20.32 cm from tip of acrimion to less 70 than 11.43 cm below tip of olecranon Loss of a hand or of the thump and four fingers of one hand or amputation from 11.43 cm. below tip of60 olecranon Loss of thumb Loss of thumb and its metacarpal bone Loss of four fingers of one hand Loss of three fingers of one hand Loss of two fingers of one hand Loss of terminal phalanx of thumb 30 40 50 30 20 20

[16A.

Guillotine amputation of the tip of the thumb without loss 10] of bone Amputation of both feet resulting in end-bearing stumps 90 Amputation through both feet proximal to the metatarso80 phalangeal joint Loss of all toes of both feet through the metatarso40 phalangeal joint

Amputation-Lower limbs 17 18. 19.

20. 21. 22. 23.

Loss of all toes of both feet proximal to the proximal inter 30 phalangeal joint Loss of all toes of both feet distal to the proximal inter 20 phalangeal joint Amputation at hip 90 80 Amputation below hip with stump not exceeding 12.70 cm. in length measured from tip of great trochanter

24. 25. 26. 27. 28. 29. 30 Other injuries 31. 32.
4

Amputation below hip with stump exceeding 12.70 cm. in length measured from tip of great trochanter but not70 beyond middle thigh Amputation below middle thigh to 8.89 cm. below knee 60 Amputation below knee with stump exceeding 8.89 cm. 50 but not exceeding 12.70 cm. Amputation below knee with stump exceeding 12.70 cm. *[50] Amputation of one foot resulting in end-bearing *[50] Amputation through one foot proximal to the metatarso- * [50] phalangeal joint Loss of all toes of one foot through metatarso20 phalangeal joint Loss of one eye, without complications, the other being 40 normal Loss of vision of one eye without complications or 30 disfigurement of eye-ball, the other being normal Partial loss of vision of one eye 10]

[32A.

LOSS OF A- Fingers of right or left hand Index finger 33 34. 35. 36. Middle finger 37 38. 39. 40. Whole Two phalanges One phalanx Guillotine amputation of tip without loss of bone 12 9 7 4 Whole Two phalanges One phalanx Guillotine amputation of tip without loss of bone 14 11 9 5

Ring or little finger

41. 42. 43. 44.

Whole Two phalanges One phalanx Guillotine amputation of tip without loss of bone

7 6 5 2

B- Toes of right of left foot Great toe 45. 46. Any other toe 47. 48. 49. 50. 51. 52. 53. 54. Through metatarso-phalangeal joint Part, with some loss of bone Through metatarso-phalangeal joint Part, with some loss of bone Through metatarso-phalangeal joint Part, with some loss of bone Through metatarso-phalangeal joint Part, with some loss of bone 3 1 5 2 6 3 9 3 Through metatarso-phalangeal joint Part, with some loss of bone 14 3

Two toes of toes of one foot, excluding great toe

Three toes of one foot, excluding great toe

Four toes of one foot, excluding great toe

*Substituted for the figures "40", "30" & "30" against sl. nos. 27, 28 and 29 respectively by Act No. 29 of 1989. 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.]

23

[SCHEDULE III: LIST OF OCCUPATIONAL DISEASES

[Section 52A] PART A Sl. No. 1 1. Occupational disease 2 Employment 3

Infectious and parasitic (a) All work involving exposure to health or diseases contracted in an

occupation where there is a laboratory work; particular 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 particular risk of contamination. 2. 3. 4. 5. Diseases caused by work in All work involving compressed air. concerned. Diseases caused by lead or All work involving its toxic compounds. concerned. Poisoning by nitrous fumes. Poisoning organophosphorus compounds. All Work involving concerned. exposure exposure to to the the risk risk

exposure to the risk exposure to the risk

by All work involving concerned.

PART B 1. Diseases caused phosphorus or its compounds. by All work involving toxic concerned. exposure to the risk

2. 3.

Diseases caused by mercury All work involving or its toxic compounds. concerned. Diseases caused benzene or its homologues. by All work involving toxic concerned.

exposure exposure

to to

the the

risk risk

4.

Diseases caused by nitro All work involving and amido toxic derivatives concerned. of benzene or its homologues. Diseases caused chromium or its compounds. by All work involving toxic concerned.

exposure

to

the

risk

5.

exposure

to

the

risk

6. 7.

Diseases caused by arsenic All work involving or its toxic compounds. concerned.

exposure

to

the

risk

Diseases caused by All work involving exposure to the action of radioactive substances and radioactive substances or ionising radiations. ionising radiations. Primary epithelomatous All work involving cancer of the skin caused by concerned. tar, pitch, bitumen, mineral oil, anthracene, or the compounds, products or residues of these substances. Diseases caused by the toxic All work involving halogen derivatives of concerned. hydrocarbons ( of the aliphatic and aromatic series) Diseases caused by carbon All work involving disulphide. concerned. Occupational cataract due to All work involving infra- red radiations. concerned. Diseases caused manganese or its compounds. by All work involving toxic concerned. exposure to the risk

8.

9.

exposure

to

the

risk

10. 11. 12.

exposure exposure exposure

to to to

the the the

risk risk risk

13.

Skin diseases caused by All work involving physical, chemical or concerned. biological agents not included in other items. Hearing impairment caused All work involving by noise. concerned. Poisoning by dinitrophenol or All work involving a homologue or by concerned. substituted dinitrophenol or by the salts of such substances. Diseases caused beryllium or its compounds. by All work involving toxic concerned.

exposure

to

the

risk

14. 15.

exposure exposure

to to

the the

risk risk

16.

exposure

to

the

risk

17.

Diseases caused cadmium or its compounds.

by All work involving toxic concerned.

exposure

to

the

risk

18.

Occupational asthma caused All work involving by recognised sensitising concerned. agents inherent to the work process. Diseases caused by flourine All work involving or its toxic compound concerned. Diseases caused nitroglycerine or nitroacid esters. by All work involving other concerned.

exposure

to

the

risk

19. 20.

exposure exposure

to to

the the

risk risk

21. 22.

Diseases caused by alcohols All work involving and ketones. concerned. Diseases caused by All work involving asphyxiants; carbon concerned. monoxide and its toxic derivatives, hydrogen sulphide. Lung cancer and All work involving mesotheliomas caused by concerned. asbestos. Primary neoplasm of the All work involving epithelial lining of the urinary concerned. bladder or the kidney or the ureter.

exposure exposure

to to

the the

risk risk

23.

exposure

to

the

risk

24.

exposure

to

the

risk

PART C 1. Pneumoconiosis caused by All work involving sclerogenic mineral dust concerned. (silicosis, anthracosilicosis asbestosis) and silicotuberculosis provided that silicosis is an essential factor in causing the resultant incapacity or death.. Bagassosis All work involving concerned. work involving exposure to the risk

2. 3.

exposure exposure

to to

the the

risk risk

Bronchopulmonary diseases All

caused by cotton, flax, hemp concerned. and sisal dust ( Byssinosis ) 4. Extrinsic allergic alveolitis All work involving caused by the inhalation of concerned. organic dusts. Bronchopulmonary diseases All work involving caused by hard metals. concerned. exposure to the risk

5.

exposure

to

the

risk

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 CHAPTER I PRELIMINARY 1. Short title, extent, commencement and application. (1) This Act may be called the Contract Labour (Regulation and Abolition) Act, 1970. (2) (3) It extends to the whole of India. 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. 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 employees 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. (a)

(4)

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. 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.

(5)

Definitions

2.

In this Act, unless the context otherwise requires (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). ---------------------------------------------------------------------------------------------------------------(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" means (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 capacity; or

(1)

(B)

(C)

who, being employed in a supervisory 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, mainly of a managerial nature; or 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.

The Advisory Boards

CHAPTER II THE ADVISORY BOARDS 3. Central Advisory Board. (1) The Central Government shall, as soon as may be, constitute a board to be called the Central Advisory Contract Labour Board (hereinafter referred to as the Central Board) to advise the Central Government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act. (2) The Central Board shall consist of (a) a Chairman to be appointed by the Central Government; (b) the Chief Labour Commissioner (Central), ex-officio; (c) such number of members, not exceeding seventeen but not less than eleven, as the Central Government may nominate to represent that Government, the Railways, the coal industry, the mining industry, the contractors, the workmen and any other interests which, in the opinion of the Central Government, ought to be represented on the Central Board. The number of persons to be appointed as members from each of the categories specified in sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Central Board shall be such as may be prescribed: Provided that the number of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principal employers and the contractors.

(3)

State Advisory Board

4. (1) The State Government may constitute a board to be called the State Advisory Contract Labour Board (hereinafter referred to as the State

Board) to advise the State Government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act. (2) The State Board shall consist of (a) a Chairman to be appointed by the State Government; (b) the Labour Commissioner, ex-officio, or in his absence any other officer nominated by the State Government in that behalf; (c) such number of members, not exceeding eleven but not less than nine, as the State Government may nominate to represent that Government, the industry, the contractors, the workmen and any other interests which, in the opinion of the State Government, ought to be represented on the State Board. The number of persons to be appointed as members from each of the categories specified in sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the State Board shall be such as may be prescribed: Provided that the number of members nominated to represent the shall not be less than the number of members nominated to represent the principal employers and the contractors.

(3)

5.

Power to constitute committees. (1) The Central Board or the State Board, as the case may be, may constitute such committees and for such purpose or purposes as it may think fit. (2) The committee constituted under sub-section (1) shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed. The members of a committee shall be paid such fees and allowances for attending its meetings as may be prescribed: Provided that no fees shall be payable to a member who is an officer of Government or of any corporation established by any law for the time being in force.

(3)

CHAPTER III REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR 6. Appointment of registering officers. The appropriate Government may, by an order notified in the Official Gazette (a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to be registering officers for the purposes of this Chapter; and (b) define the limits, within which a registering officer shall exercise the powers conferred on him by or under this Act. Registration of certain establishments. (1) Every principal employer of an establishment to which this Act applies shall, within such period as the appropriate Government may, by notification in the Official Gazette, fix in this behalf with respect to establishments generally or with respect to any class of them, make an application to the registering officer in the prescribed manner for registration of the establishment: Provided that the registering officer may entertain any such application for registration after expiry of the period fixed in this behalf, if the registering officer is satified that the applicant was prevented by sufficient cause from making the application in time.

7.

(2)

If the application for registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration containing such particulars as may be prescribed.

8.

Revocation of registration in certain cases. If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any material fact, or that for any other reason the registration has become useless or ineffective and, therefore, requires to be revoked, the registering officer may, after giving an opportunity to the principal employer of the establishment to be heard and with the previous approval of the appropriate Government, revoke the registration. Effect of non-registration. No principal employer of an establishment, to which this Act applies, shall (a) in the case of an establishment required to be registered under section 7, but which has not been registered within the time fixed for the purpose under that section, (b) in the case of an establishment the registration in respect of which has been revoked under section 8, employ contract labour in the establishment after the expiry of the period referred to in clause (a) or after the revocation of registration referred to in clause (b), as the case may be.

9.

Prohibition of employment of contract labour

10. (1) Notwithstanding anything contained in this Act, the appropriate Government may, after consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour in any process, operation or other work in any establishment. (2) Before issuing any notification under sub-section (1) in relation to an establishment, the appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevant factors, such as (a) whether the process, operation or other work is incidental to, or necessary for the industry, trade, business, manufacture or occupation that is carried on in the establishment: (b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the nature of industry, trade, business, manufacture or occupation carried on in that establishment; (c) whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereto; (d) whether it is sufficient to employ considerable number of whole-time workmen. Explanation.-- If a question arises whether any process or operation or other work is of perennial nature, the decision of the appropriate Government thereon shall be final. CHAPTER IV LICENSING OF CONTRACTORS 11. Appointment of licensing officers. The appropriate Government may, by an order notified in the Official Gazette (a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to

(b) 12. (1)

be licensing officers for the purposes of this Chapter; and define the limits, within which a licensing officer shall exercise conferred on licensing officers by or under this Act.

the powers

Licensing of contractors. With effect from such date as the appropriate Government may, by notification in the Official Gazette, appoint, no contractor to whom this Act applies, shall undertake or execute any work through contract labour except under and in accordance with a licence issued in that behalf by the licensing officer. Subject to the provisions of this Act, a licence under sub-section (1) may contain such conditions including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as the appropriate Government may deem fit to impose in accordance with the rules, if any, made under section 35 and shall be issued on payment of such fees and on the deposit of such sum, if any, as security for the due performance of the conditions as may be prescribed.

(2)

13. (1)

Grant of licences. Every application for the grant of a licence under sub-section (1) of section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of process, operation or work for which contract labour is to be employed and such other particulars as may be prescribed. The licensing officer may make such investigation in respect of the application received under sub-section (1) and in making any such investigation the licensing officer shall follow such procedure as may be prescribed. A licence granted under this Chapter shall be valid for the period specified therein andmay be renewed from time to time for such period and on payment of such fees and on such conditions as may be prescribed.

(2)

(3)

Revocation, suspension and amendment of licences

14. (1) If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise, that (a) a licence granted under section 12 has been obtained by misrepresentation or suppression of any material fact, or (b) the holder of a licence has, without reasonable cause, failed to comply with the conditions subject to which the licence has been granted or has contravened any of the provisions of this Act or the rules made thereunder, then, without prejudice to any other penalty to which the holder of the licence may be liable under this Act, the licensing officer may, after giving the holder of the licence an opportunity of showing cause, revoke or suspend the licence or forfeit the sum, if any, or any portion thereof deposited as security for the due performance of the conditions subject to which the licence has been granted. Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a licence granted under section 15. Appeal.- (1) Any person aggrieved by an order made under section 7, section 8, section 12 or section 14 may, within thirty days from the date on which the order is communicated to him, prefer an appeal to an appellate officer who shall be a person nominated in this behalf by the appropriate Government:

(2)

Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard dispose of the appeal as expeditiously as possible. CHAPTER V WELFARE AND HEALTH OF CONTRACT LABOUR 16. Canteens. (1) The appropriate Government may make rules requiring that in every establishment (a) to which this Act applies, (b) wherein work requiring employment of contract labour is likely to continue for such period as may be prescribed, and (c) wherein contract labour numbering one hundred or more is ordinarily employed by a contractor, one or more canteens shall be provided and maintained by the contractor for the use of such contract labour. (2) Without prejudice to the generality of the foregoing power, such rules may provide for (a) the date by which the canteens shall be provided; (b) the number of canteens that shall be provided, and the standards in respect of construction, accommodation, furniture and other equipment of the canteens; and (c) the foodstuffs which may be served therein and the charges which may be made therefore.

17.

Rest-rooms. (1) In every place wherein contract labour is required to halt at night in connection with the work of an establishment (a) to which this Act applies, and (b) in which work requiring employment of contract labour is likely to continue for such period as may be prescribed, there shall be provided and maintained by the contractor for the use of the contract labour such number of rest-rooms or such other suitable alternative accommodation within such time as may be prescribed. (2) The rest-rooms or the alternative accommodation to be provided under subsection (1) shall be sufficiently lighted and ventilated and shall be maintained in a clean and comfortable condition.

Other facilities
18. It shall be the duty of every contractor employing contract labour in connection with the work of an establishment to which this Act applies, to provide and maintain (a) a sufficient supply of wholesome drinking water for the contract labour at convenient places; (b) a sufficient number of latrines and urinals of the prescribed types so situated as to be convenient and accessible to the contract labour in the establishment; and (c) washing facilities. First-aid facilities.

19.

There shall be provided and maintained by the contractor so as to be readily accessible during all working hours a first-aid box equipped with the prescribed contents at every place where contract labour is employed by him. 20. Liability of principal employer in certain cases. (1) If any amenity required to be provided under section 16, section 17, section 18 or section 19 for the benefit of the contract labour employed in an establishment is not provided by the contractor within the time prescribed therefore, such amenity shall be provided by the principal employer within such time as may be prescribed. (2) All expenses incurred by the principal employer in providing the amenity may be recovered by the principal employer from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

Responsibility for payment of wages

21. (1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed. Every principal employer shall nominate a representative duly authorised by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorised representative of the principal employer. In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. CHAPTER VI PENALTIES AND PROCEDURF 22. Obstructions. (1) Whoever obstructs an inspector in the discharge of his duties under this Act or refuses or willfully neglects to afford the inspector any reasonable facility for making any inspection, examination, inquiry or investigation authorised by or under this Act in relation to an establishment to which, or a contractor to whom, this Act applies, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both. (2) Whoever willfully refuses to produce on the demand of an inspector any register or other document kept in pursuance of this Act or prevents or attempts to prevent or does anything which he has 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 imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both.

(2)

(3) (4)

23.

Whoever contravenes any provision of this Act or of any rules made thereunder prohibiting, restricting or regulating the employment of contract labour, or contravenes any condition of a licence granted under this Act, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both, and in the case of a continuing contravention with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention. Other offences. If any person contravenes any of the provisions of this Act or of any rules made thereunder for which no other penalty is elsewhere provided, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. Offences by companies. (1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence 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 that the commission of the offence is attributable to any neglect on the part of any director, manager, managing agent or any other officer of the company, such director, manager, managing agent or such 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 purpose 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.

24.

25.

26.

Cognizance of offences. No court shall take cognizance of any offence under this Act except on a complaint made by, or with the previous sanction in writing of, the inspector and no court inferior to that of a Presidency Magistrate or a magistrate of the first class shall try any offence punishable under this Act. Limitation of prosecutions. No court shall take cognizance of an offence punishable under this Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of an inspector: Provided that where the offence consists of disobeying a written order made by an inspector, complaint thereof may be made within six months of the date on which the offence is alleged to have been committed. CHAPTER VII MISCELLANEOUS

27.

28.

Inspecting staff. (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 powers under this Act. (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 assistance (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 contract labour is employed, for the purpose of examining any register or record 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 a workman employed therein; (c) require any person giving out work and any workman, 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; (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 the principal employer or contractor; and (e) exercise such other powers as may be prescribed. Any person required to produce any document or thing or to give any information required 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). The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, so far as may be, apply to any search or seizure under sub-section (2) as they apply to any search or seizure made under the authority of a warrant issued under section 98 of the said Code.

(3)

(4)

Registers and other records to be maintained

29. (1) Every principal employer and every contractor shall maintain such registers and records giving such particulars of contract labour employed, the nature of work performed by the contract labour, the rates of wages paid to the contract labour and such other particulars in such form as may be prescribed. Every principal employer and every contractor shall keep exhibited in such manner as may be prescribed within the premises of the establishment where the contract labour is employed, notices in the prescribed form containing particulars about the hours of work, nature of duty and such other information as may be prescribed.

(2)

30.

Effect of laws and agreements inconsistent with this Act. (1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any

agreement or contract of service, or in any standing orders applicable to the establishment whether made before or after the commencement of this Act: Provided that where under any such agreement, contract of service or standing orders the contract labour employed in the establishment are entitled to benefits in respect of any matter which are more favourable to them than those to which they would be entitled under this Act, the contract labour shall continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding that they receive benefits in respect of other matters under this Act. (2) Nothing contained in this Act shall be construed as precluding any such contract labour from entering into an agreement with the principal employer or the contractor, as the case may be, for granting them rights or privileges in respect of any matter which are more favourable to them than those to which they would be entitled under this Act.

31.

Power to exempt in special cases. The appropriate Government may, in the case of an emergency, direct, by notification in the Official Gazette, that subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the notification, all or any of the provisions of this Act or the rules made there under shall not apply to any establishment or class of establishments or any class of contractors. Protection of action taken under this Act. (1) No suit, prosecution or other legal proceedings shall lie against any registering officer, licensing officer or any other Government servant or against any member of the Central Board or the State Board, as the case may be, for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. (2) No suit or other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.

32.

33.

Power to give directions. The Central Government may give directions to the Government of any State as to the carrying into execution in the State of the provisions contained in this Act. Power to remove difficulties. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty.

34.

Power to make rules

35. (1) (2) The appropriate Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act. 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) the number of persons to be appointed as members representing various interests on the Central Board and the State Board, the

(b)

(c) (d) (e) (f)

(g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (3)

term of their office and other conditions of service, the procedure to be followed in the discharge of their functions and the manner of filling vacancies; the times and places of the meetings of any committee constituted under this Act, the procedure to be followed at such meetings including the quorum necessary for the transaction of business, and the fees and allowances that may be paid to the members of a committee; the manner in which establishments may be registered under section 7, the levy of a fee therefore and the form of certificate of registration; the form of application for the grant or renewal of a licence under section 13 and the particulars it may contain; the manner in which an investigation is to be made in respect of an application for the grant of a licence and the matters to be taken into account in granting or refusing a licence; the form of a licence which may be granted or renewed under section 12 and the conditions subject to which the licence may be granted or renewed, the fees to be levied for the grant or renewal of a licence and the deposit of any sum as security for the performance of such conditions; the circumstances under which licences may be varied or amended under section 14; the form and manner in which appeals may be filed under section 15 and the procedure to be followed by appellate officers in disposing of the appeals; the time within which facilities required by this Act to be provided and maintained may be so provided by the contractor and in case of default on the part of the contractor, by the principal employer; the number and types of canteens, rest-rooms, latrines and urinals that should be provided and maintained; the type of equipment that should be provided in the first-aid boxes; the period within which wages payable to contract labour should be paid by the contractor under sub-section (1) section 21; the form of registers and records to be maintained by principal employers and contractors; the submission of returns, forms in which, and the authorities to which, such returns, may be submitted; the collection of any information or statistics in relation to contract labour; and any other matter which has to be, or may be, prescribed under this Act.

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.