workers itself which is all concerned with the work or non-business terms or terms of business dependent on the terms of state of work of any person. Workman The expression “workman” signifies any individual (counting a student or apprentice) who works in an industry who needs to do any manual, skilled/unskilled, incompetent, specialized, operational, administrative, supervisory and so forth work for contract or reward, regardless of whether the terms of business are communicated or inferred, and for motivations behind any procedure under this Act in connection to an industrial dispute, incorporates any person who has been expelled, released or saved regarding, or as an outcome of the case, or who’s rejection, release or conservation has prompted that dispute, however, does exclude any such individual- who is dependent upon the Air Force Act 1950, or the Army Act 1950, or the Navy Act 1957; who is employed in the police administration or as an official or other representative of a jail; who is employed primarily in an administrative or managerial limit. An individual, being underemployed in a supervisory limit draws compensation surpassing Rs. 10000 for every month or activities, either by the idea of the obligations to the workplace or by reason of forces vested in him, works fundamentally of an administrative sort. Lay-off Layoff or “Cutback” signifies the refusal or lack of power to refuse, disappointment or failure of a business by virtue of lack of coal, power or crude material, etc. or the aggregation of stocks or the breakdown of apparatus to offer work to a workman whose name is on the muster rolls of his industrial foundation and who has not been retrenched. Closure This implies the shutting down of a part of an establishment or an entire place of employment. 5.3 OBJECTIVES This Act furnishes us with specific guidelines and guidelines in regards to the works committee for both the businesses and all the workmen to advance measures for good working relations and comprehension among the workmen and the businesses later on, and to end that, it additionally vows to resolve any material difference in views of opinion in regard to such issues. This is an Act made for the examination and settlement of industrial disputes, and for different purposes too. This Act centers around any industry carried on by or under the authority of the Central Government, or by a railway organization or concerning any such controlled industry as might be indicated for this benefit by the Central Government. 51 CU IDOL SELF LEARNING MATERIAL (SLM)
5.4 SUMMARY Thus, this was the Industrial Disputes Act which was passed by the government of India in 1947. This Act ensures peace and harmony among all the industrial establishments, and if any conflict arises, the provisions in the Industrial Disputes Act helps in solving the issue in a systematic manner in which all the parties are satisfied and every decision made is fair and just. 5.5 KEYWORDS (k) \"industrial dispute\" means any dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person; 1*[(ka) \"industrial establishment or undertaking\" means an establishment or undertaking in which any industry is carried on: Provided that where several activities are carried on in an establishment or undertaking and only one or some of such activities is or are an industry or industries, then,-- (a) if any unit of such establishment or undertaking carrying on any activity, being an industry, is severable from the other unit or units of such establishment or undertaking, such unit shall be deemed to be a separate industrial establishment or undertaking; (b) if the predominant activity or each of the predominant activities carried on in such establishment or undertaking or any unit thereof is an industry and the other activity or each of the other activities carried on in such establishment or undertaking or unit thereof is not severable from and is, for the purpose of carrying on, or aiding the carrying on of, such predominant activity or activities, the entire establishment or undertaking or, as the case may be, unit thereof shall be deemed to be an industrial establishment or undertaking 5.6 LEARNING ACTIVITY 1. What is Industrial Dispute? 2. Who can be termed as “Worker” under the Industrial Dispute Act, 1947? 3. Industrial Dispute Act, 1947, is applicable to which kind of establishment? 4. What are the salient features of Industrial Dispute Act? 5. Define Industrial Disput 52 CU IDOL SELF LEARNING MATERIAL (SLM)
5.7 UNIT END QUESTIONS DESCRIPTIVE QUESTIONS: SHORT QUESTIONS: 1. What do you mean by Industrial Conflicts / Disputes? 2. What do you mean by Impact of Industrial Disputes? 3. What do you mean by Strike? Define Strike? 4. Write about lock out, layoff, Lock – out: 5. What do you mean by Retrenchment? 6. Write a short note on Industrial Peace. 7. What do you mean by Voluntary conciliation? LONG QUESTIONS 1. Explain the scope and applicability of The Industrial Dispute Act, 1947? 2. Define and Explain the need and importance of Industrial Dispute Act, 1947? 3. What are the objectives of Industrial Disputes Act? 4. What are the main causes of Industrial Dispute? 5. Write a note on Duties of Board? 6. Write a note on duties of Court? 7. What are the duties of Labour courts, Tribunals and National tribuna MULTIPLE CHOICE QUESTIONS: 53 1) When did the Industrial Disputes Act, come into force? A) 01 April 1949 B) 01 March 1948 C) 01 May 1947 D) 01 April 1947 2) Which section of the Industrial Disputes Act, 1947 deals with the finality of orders constituting Boards, etc? A. Section 12 of the Industrial Disputes Act, 1947 B. Section 9 of the Industrial Disputes Act, 1947 C. Section 14 of the Industrial Disputes Act, 1947 D. Section 20 of the Industrial Disputes Act, 1947 3) Which section of the Industrial Disputes Act, 1947 deals with “Labour Courts”? CU IDOL SELF LEARNING MATERIAL (SLM)
A. Section 7 of the Industrial Disputes Act, 1947 B. Section 4 of the Industrial Disputes Act, 1947 C. Section 3 of the Industrial Disputes Act, 1947 D. Section 8 of the Industrial Disputes Act, 1947 4) Section 28 of the Industrial Disputes Act, 1947 deals with_______? A. Power to make rules. B. Penalty for giving financial aid to illegal strikes and lock-outs. C. Delegation of powers. D. Courts of Inquiry 5.Illegal strikes and lock-outs., is provided in section____ of the Industrial Disputes Act, 1947 A. Section 34 of the Industrial Disputes Act, 1947 B. Section 22 of the Industrial Disputes Act, 1947 C. Section 24 of the Industrial Disputes Act, 1947 D. Section 28 of the Industrial Disputes Act, 1947 ANSWERS: 1-D, 2-B, 3-A, 4-B, 5-C 5.8 REFERENCES https://indiankanoon.org/doc/500379/ http://www.mondaq.com/india/x/629148/employee+rights+labour+ relations/Indian+Industrial+Disputes+Act+1947 https://labour.gov.in/sites/default/files/THEINDUSTRIALDISPUTES_ Act1947_0.pdf 54 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT – 6 PROTECTIVE LEGISLATION STRUCTURE 6.0 Learning Objectives 6.1 Introduction 6.2 The Factories Act, 1948 6.3 The Payment Of Wages Act, 1936 6.4 Summary 6.5 Keywords 6.6 Learning Activity 6.7 Unit End Questions 6.8 References 6.0 LEARNING OBJECTIVE At the end of this Unit You will learn: All about the Factories Act All about The Payment of Wages Act 6.1 INTRODUCTION There has been rise of large scale factory/ industry in India in the later half of nineteenth century. Major Moore, Inspector-in- Chief of the Bombay Cotton Department, in his Report in 1872-73 first of all raised the question for the provision of legislation to regulate the working condition in factories; the first Factories act was enacted in 1881. Since then the act has been amended on many occasions. The Factories Act 1934 was passed replacing all the previous legislation in regard to factories. This act was drafted in the light of the recommendations of the Royal Commission on Labour. This Act has also been amended suitably from time to time. The experience of working of the Factories Act, 1934 had revealed a number of defects and weakness which have hampered effective administration of the Act, and the need for wholesale revision of the act to extend its protective provisions to the large number of smaller industrial establishments was felt. Therefore, the Factories Act, 1948 consolidating and amending the law relating to labour in 55 CU IDOL SELF LEARNING MATERIAL (SLM)
factories, was passed by the Constituent Assembly on August 28, 1948. The Act received the assent of Governor General of India on 23 September 1948 and came into force on April 1, 1949. 6.2 THE FACTORIES ACT, 1948 Objective of Factories Act ,1948 The main objectives of the Indian Factories Act, 1948are to regulate the working conditions in factories, to regulate health, safety welfare, and annual leave and enact special provision in respect of young persons, women and children who work in the factories. 1.Working Hours: According to the provision of working hours of adults, no adult worker shall be required or allowed to work in a factory for more than 48 hours in a week. There should be a weekly holiday. 2.Health: For protecting the health of workers, the Act lays down that every factory shall be kept clean and all necessary precautions shall be taken in this regard. The factories should have proper drainage system, adequate lighting, ventilation, temperature etc. Adequate arrangements for drinking water should be made. Sufficient latrine and urinals should be provided at convenient places. These should be easily accessible to workers and must be kept cleaned. 3. Safety: In order to provide safety to the workers, the Act provides that the machinery should be fenced, no young person shall work at any dangerous machine, in confined spaces, there should be provision for manholes of adequate size so that in case of emergency the workers can escape. 4. Welfare: For the welfare of the workers, the Act provides that in every factory adequate and suitable facilities for washing should be provided and maintained for the use of workers. Facilities for storing and drying clothing, facilities for sitting, first-aid appliances, shelters, rest rooms’ and lunch rooms, crèches, should be there. 5. Penalties:- 56 CU IDOL SELF LEARNING MATERIAL (SLM)
The provisions of The Factories Act, 1948, or any rules made under the Act, or any order given in writing under the Act is violated, it is treated as an offence. The following penalties can be imposed:- (a) Imprisonment for a term which may extend to one year; (b) Fine which may extend to one lakh rupees; or (c) Both fine and imprisonment. If a worker misuses an appliance related to welfare, safety and health of workers, or in relation to discharge of his duties, he can be imposed a penalty of Rs. 500/-. Applicability of Factories Act, 1948 The Act is applicable to any factory whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on; but this does not include a mine, or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurant or eating place. Importance of Factories Act, 1948 The Factories Act, 1948 is a beneficial legislation. The aim and object of the Act is essentially to safeguard the interests of workers, stop their exploitation and take care of their safety, hygiene and welfare at their places of work. It casts various obligations, duties and responsibilities on the occupier of a factory and also on the factory manager. Amendments to the Act and court decisions have further extended the nature and scope of the concept of occupier, especially vis-a-vis hazardous processes in factories. Definitions 1.Who is an Occupier? According to section 2(n) \"occupier\" of a factory means the person, who has ultimate control over the affairs of the factory, Provided that- (i) in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier; (ii) in the case of a company, any one of the directors, shall be deemed to be the occupier: (iii) in the case of a factory owned or controlled by the Central Government or any State 57 CU IDOL SELF LEARNING MATERIAL (SLM)
Government, or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority, as the case may be, shall be deemed to be the occupier: Provided further that in the case of a ship which is being repaired, or on which maintenance work is being carried out, in a dry dock which is available for hire, (1) the owner of the dock shall be deemed to be the occupier for the purposes of any matter provided for by or under- (a) section 6, section 7, section 7A, section 7B, section 11 or section 12; (b) section 17, in so far as it relates to the providing and maintenance of sufficient and suitable lighting in or around the dock; (e) section 18, section 19, section 42, section 46, section 47 or section 49, in relation to the workers employed on such repair or maintenance; (2) the owner of the ship or his agent or master or other officer-in-charge of the ship or any person who contracts with such owner, agent or master or other officer-in-charge to carry out the repair or maintenance work shall be deemed to be the occupier for the purposes of any matter provided for by or under section 13, section 14, section 16 or section 17 (save as otherwise provided in this proviso) or Chapter IV (except section 27) or section 43, section 44 or section 45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or section 108, section 109 or section 110, in relation to- (a) the workers employed directly by him or by or through any agency; and (b) the machinery, plant or premises in use for the purpose of carrying out such repair or maintenance work by such owner, agent, master or other officer-in-charge or person. ION Exchange India Ltd. V.Deputy Chief Inspector of factories, Salem (1996).It was held that owner can nominate any person tobe in ultimate control over the affairs of a factory. If no one else has been nominated to be in ultimate control over the affairs of the company, Director of a company or any partner of partnership is deemed to be the occupier. 2. What is a factory? According to section 2(m) \"factory\" means any premises including the precincts thereof- (i) whereon ten or more workers are working, or were working on any day of the preceding 58 CU IDOL SELF LEARNING MATERIAL (SLM)
twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, - but does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place; Explanation I--- For computing the number of workers for the purposes of this clause all the workers in different groups and relays in a day shall be taken into account; Explanation II.---For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof; 3. Who is a Worker? According to section 2(l) ”worker\" means a person employed directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer whether for remuneration or not in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with the manufacturing process, or the subject of the manufacturing process but does not include any member of the armed forces of the Union; 4. What is a Manufacturing Process? According to section 2(k) \"manufacturing process\" means any process for- (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adopting any article or substance with a view to its use, sale, transport, delivery or disposal; or (ii) Pumping oil, water, sewage, or any other substance; or (iii) Generating, transforming or transmitting power; or (iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book-binding; or (v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; 59 CU IDOL SELF LEARNING MATERIAL (SLM)
or (vi) Preserving or storing any article in cold storage; 5. What is hazardous process? According to section 2(cb) \"hazardous process\" means any process or activity in relation to an industry specified in the 'First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye-products, wastes or effluents thereof would- (i) cause material impairment to the health of the persons engaged in or connected therewith, or (ii) result in the pollution of the general environment:- Provided that the State Government may, by notification in the official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule; Duties of Occupier The Duties of Occupier have been clearly mentioned in the following sections of Factories Act, 1948: - 1. Notice by Occupier (Section 7) The occupier shall, send to the Chief Inspector a written notice in respect of all establishments which come within the scope of the Act for the first time, before a factory engaged in a manufacturing process which is ordinarily carried on for less than one hundred and eighty working days in the year resumes working, whenever a new manager is appointed. During any period for which no person has been designated as manager of a factory or during which the person designated does not manage the factory, any person found acting as manager, or if no such person is found, the occupier himself, shall be deemed to be the manager of the factory for the purposes of this Act. 2. General Duties of the Occupier(Section7A) # To ensure the health, safety and welfare of all workers while they are at work in the factory. # To provide and maintain the plant and systems of work in the factory that are safe and without risk to health of the workers. # To provide arrangements in the factory for ensuring safety and absence of risk to health in connection with the use, handling, storage and transport of articles and substances # To provide such information, instruction, training and supervision as are necessary to ensure the health and safety of all workers at work. 60 CU IDOL SELF LEARNING MATERIAL (SLM)
# To maintain all places of work in the factory in a condition that is safe and without risks to health and to provide and maintain such means of access to, and egress from, such places as are safe and without such risks. # To provide, maintain or monitor such working environment in the factory for the workers that is safe, without risk to health and adequate as regards facilities and arrangements for their welfare at work. # To prepare a written statement of his general policy with respect to the health and safety of the workers at work and the organization and arrangements in force for carrying out that policy. 3. Appointment of Safety officers. (Section 40-B) It shall be the duty of the of the Occupier to Appoint a Safety officer in a factory:- (i) Wherein one thousand or more workers are ordinarily employed, or (ii) 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 persons employed in the factory, if so required by the State Government by notification in the official Gazette. 4. Compulsory Disclosure of Information by the Occupier. (Section 41-B) Compulsory disclosure of information by the occupier - # The occupier of every factory involving a hazardous process shall disclose in the manner prescribed to the Chief Inspector and the local authority. # 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 therein and intimates such policy to the Chief Inspector and the local authority. # Every occupier shall, with the approval of the Chief Inspector, draw up an on-site 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. # 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 61 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 5. Specific Responsibility of the occupier in relation to Hazardous Process. (Section 41-C) Every occupier of a factory involving any hazardous process shall- # maintain accurate and up-to-date health records or, as the case may be, medical records, of the workers in the factory # appoint persons who possess qualifications and experience in handling hazardous substances # Provide for medical examination of every worker. 6. Worker’s Participation in safety management. (Section 41-G) 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 co-operation between the workers and the management in maintaining proper safety and health at work and to review periodically the measures taken in that behalf. 7. Right of Workers to be warned about imminent dangers. (Section 41-H) It shall be the duty of such occupier, agent, manager or the person in charge 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. 8. Facilities for sitting and Canteens. (Section 42 to 49) It is the duty of occupier to provide welfare facilities like Lunch rooms, Canteen, Crèche, Washing facilities, first-aid appliances etc. to all workers and to appoint a welfare officer. 9. Annual Leave with Wage.(Section 79) 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 Disputes Act, 1947 (14 of 1947), or a similar Committee constituted 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 the Chief Inspector a scheme in writing whereby the grant of leave allowable under this section may be regulated. 62 CU IDOL SELF LEARNING MATERIAL (SLM)
10. Safety and Occupational Health Survey. (Section 91-A) The occupier or manager of the factory or any other person who for the time being purports to be in charge of the factory, undertake safety and occupational health surveys, and such occupier or manager or other person shall afford all facilities for such every, including facilities for the examination and testing of plant and machinery and collection of samples and other data relevant to the survey. Duties of Factory Manager The Duties of Factory Manager are mentioned in the following Sections of Factory Act, 1948: - 1. Right of Workers to be warned about imminent danger. (Section 41-H) It shall be the duty of such occupier, agent, manager or the person in charge of the factory or process to take immediate remedial action if he is satisfied about the existence of such imminent danger in the factory where the worker is engaged in any hazardous process and send a report forthwith of the action taken to the nearest Inspector. 2. Notice of periods of work for adults. (Section 61) The manager of the factory shall display correctly and 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, fix the periods during which each relay of the group may be required to work, classify them into groups according to the nature of their work indicating the number of workers in each group, shall draw up a scheme of shifts where under the periods during which any relay of the group may be required to work. 3. Register of Adult Workers. (Section 62) 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. In State of Maharashtra v. Sampat Lal Mensukh Bothra (1992),it was held that the obligation to maintain registers is imposed on the manager and 4. Annual Leave with Wage. (Section 79) 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 Disputes Act, 1947 (14 of 1947), or a similar Committee constituted 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, 63 CU IDOL SELF LEARNING MATERIAL (SLM)
may lodge with the Chief Inspector a scheme in writing whereby the grant of leave allowable under this section may be regulated. 5. Notice of Certain Dangerous Occurrences. (Section 88A) Notice of certain dangerous occurrences. —Where in a factory any dangerous occurrence of such nature as may be prescribed occurs, whether causing any bodily injury or disability or not, the manager of the factory shall send notice thereof to such authorities, and in such form and within such time, as may be prescribed. 6. Notice of Certain Disease. (Section 89) Where any worker in a factory contracts any disease specified in 1[the Third Schedule], the manager of the factory shall send notice thereof to such authorities, and in such form and within such time, as may be prescribed. 7. Safety and Occupational Health Survey. (Section 91-A) The occupier or manager of the factory or any other person who for the time being purports to be in charge of the factory, undertake safety and occupational health surveys, and such occupier or manager or other person shall afford all facilities for such every, including facilities for the examination and testing of plant and machinery and collection of samples and other data relevant to the survey. 8. Notice of Certain Accidents. (Section 88) Where in any factory an accident occurs which causes death, or which causes any bodily injury by reason of which the person injured is prevented from working for a period of forty- eight hours or more immediately following the accident, or which is of such nature as may be prescribed in this behalf, the manager of the factory shall send notice thereof to such authorities, and in such form and within such time, as may be prescribed to the Chief Inspector. General Procedure As To Filing of Cases In Case of Factory Accidents Whenever an accident takes place in a factory the Occupier or Factory Manager shall inform the Chief Inspector within a period of forty eight hours or so (Section 88) and shall send Form No. 22 containing all the information regarding the said accident to Labour Department, Industrial Health And Safety, which shall inquire into the matter by factory inspector who shall inspect the accident spot, take the witness of the victims, then he shall issue a show cause notice to the Occupier and Factory Manager to reason out the causes of the mis happening. If the Factory Inspector is not satisfied with the reply given by the factory management he shall institute a case against the Occupier and Factory Manager before Judicial Magistrate First Class, Labour Court (Section 105).Then in case if the party to the disputes are not satisfied with the judgement they shall refer the case to the High Court or and 64 CU IDOL SELF LEARNING MATERIAL (SLM)
to the Supreme Court respectively. Penalties under factory act, 1948 Section 92. General penalty for offences. - Save as is otherwise expressly provided in this Act and subject to the provisions of section 93, if in, or in respect of, any factory there is any contravention of the provisions of this Act or of any rules made there under or of any order in writing given there under, the occupier or manager of the factory shall each be guilty of an offence and punishable with imprisonment for a term which may extend to two years or with fine which may extend to one lakh rupees or with both, and if the contravention is continued after conviction, with as further fine which may extend to one thousand rupees for each day on which the contravention is so continued. Provided that where contravention of any of the provisions of Chapter IV or any rule made there under or under section 87 has resulted in an accident causing death or serious bodily injury, the fine shall not be less than twenty-five thousand rupees in the case of an accident causing death, and five thousand rupees in the case of an accident causing serious bodily injury. Explanation. - in this section and in section 94 \"serious bodily injury\" means an injury which involves, or in all probability will involve, the permanent loss of the use of, or permanent injury to, any limb or the permanent loss of, or injury to sight or hearing, or the fracture of any bone, but shall not include, the fracture of bone or joint (not being fracture of more than one bone or joint) of and phalanges of the hand or foot. General Manager, Wheel & A. P, Bangalore v. State of Karnataka (1996) .It was held in this case that the requirement of obtaining sanction to prosecute is mandatory and taking cognizance of an offence in the absence of sanction cannot be allowed to stand and has to be quashed. Provincial Government v. Ganpat, AIR 1943 Nag 243.It was held in this case where the occupier or the manager of the factory admits the guilt under Section 92 of the Act, but alleges the clerk of the Factory to be the actual offender, the onus of establishing the innocence is on such occupier or the manager as the case maybe. Section 94. Enhanced penalty after previous conviction. - (1) If any person who has been convicted of any offence punishable under section 92 is again found guilty of an offence involving a contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term which may extend to three years or with fine, which shall not be less than ten thousand rupees but which may extend to two lakh rupees or with both; 65 CU IDOL SELF LEARNING MATERIAL (SLM)
Provided that the Court may, for any adequate and special reasons to be mentioned in the judgment, impose a fine of less than ten thousand rupees: Provided further that where contravention of any of the provisions of Chapter IV or any rule made there under or under section 87 has resulted in an accident causing death or serious bodily injury, the fine shall not be less than thirty-five thousand rupees in the case of an accident causing death and ten thousand rupees in the case of an accident causing serious bodily injury. (2) For the purpose of sub-section (1), no cognizance shall be taken of any conviction made more than two years before the commission of the offence for which the person is subsequently being convicted. Section 95. Penalty for obstructing inspector. - Whoever wilfully obstructs an Inspector in the exercise of any power conferred on him by or under this Act, or fails to produce on demand by an Inspector any register or other documents kept in his custody in pursuance of this Act or of any rules made there under, or conceals or prevents any workers, in a factory from appearing before, or being examined by, an inspector, shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to ten thousand rupees or with both. Section 96A. Penalty for contravention of the provisions of sections 41B, 41C and 41H.- (1) Whoever fails to comply with or contravenes any of the provisions of sections 41B, 41C or 41H or the rules made there under, shall, in respect of such failure or contravention, be punishable with imprisonment for a term which may extend to seven years and with fine which may extend to two lakh rupees, and in case the failure or contravention continues, with additional fine which may extend to five thousand rupees for every day during which such failure or contravention continues, after the conviction for the first such failure or contravention. (2) If the failure or contravention referred to in sub-section (1) continues beyond a period of one year after the date of conviction, the offender shall be punishable with imprisonment for a term which may extend to ten years. Section 97. offences by workers. - (1) Subject to the provisions of section 111, if any worker employed in a factory contravenes any provision of this Act or any rules or orders made thereunder, imposing any duty or liability on workers, he shall be punishable with fine which may extend to five hundred rupees. 66 CU IDOL SELF LEARNING MATERIAL (SLM)
(2) Where a worker is convicted of an offence punishable under sub-section (1) the occupier or manager of the factory shall not be deemed to be guilty of an offence in respect of that contravention, unless it is proved that he failed to take all reasonable measures for its prevention. Exemptions of occupier or manager from liability in certain cases Section 101. Exemption of occupier or manager from liability in certain cases.- Where the occupier or manager of a factory is charged with an offence punishable under this Act he shall be entitled, upon complaint duly made by him and on giving to the prosecutor not less than three clear days' notice in writing of his intention so to do, 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 occupier or manager of the factory, as the case may be, 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 was the occupier or manager of the factory, and the occupier or manager, as the case may be, shall be, discharged from any liability under this Act in respect of such offence: Provided that in seeking to prove as aforesaid, the occupier or manager of the factory, as the case may be, may be examined on oath, and his evidence and that of any witness whom he calls in his support, shall be subject to cross-examination on behalf of the person he charges as the actual offender and by the prosecutor: Provided further that, if the person charged as the actual offender by the occupier or manager, cannot be brought before the court at the time appointed for hearing the charge, the court shall adjourn the hearing from time to time for a period not exceeding three months and if by the end of the said period the person charged as the actual offender cannot still be brought before the court, the court shall proceed to hear the charge against the occupier or manager and shall, if the offence be proved, convict the occupier or manager. Changes brought about by the Factory Act,1948 The following changes were made by the factories Act, 1948: - # The definition of the term “Factory” was widened to cover all industrial establishments 67 CU IDOL SELF LEARNING MATERIAL (SLM)
employing ten or more workers where power was used and 20 or more workers in all other cases. # The distinction between seasonal and non-seasonal factories was abolished. # Under the Act of 1934 the State Governments had power to extend the application of the Act to establishments where more than 10 Workers were employed. Under the Act of 1948, the State Government may extend the provisions of this Act to any establishment irrespective of the number of the workers employed therein and irrespective of the number of the workers employed on therein and irrespective of the fact that manufacturing work is carried by power or otherwise. The only exception is an establishment where the work is done solely by the members of a family. # Chapter III of the Act of 1934 was split into three parts, dealing with health, safety and welfare of workers. The Act specifies very clearly the minimum requirements under three heads stated above. # The basic provisions of the old Act relating to Health, safety, and welfare are extended to all work places irrespective of the number of workers employed, except premises where processes are carried on by the occupier with the sole aid of his family. # The minimum age for the admission of children to employment has been raised from 12 to 14 years and the minimum permissible daily hours of work of children were reduced from five to four and a half hour. # Provisions are made for the licensing and registration of factories and the prior scrutiny by the Factories Inspectorate of the Plans and specifications of factory buildings. # Employment of Children and women between 7 p.m. and 6 a.m. is prohibited. For overtime work the workers are entitled to twice their normal rate of wages. # The State Government are empowered to make rules requiring the association of the workers in the management of arrangements for the welfare of the workers. # State Government is obliged to see that all the factories are registered and take a licensing for working, which should be periodically renewed. Prior approval of the State Government has been made necessary for every New The installation of a Factory or for the extension of an existing factory. Besides mines, the new Act also excludes railway running sheds from the definition of Factories. 68 CU IDOL SELF LEARNING MATERIAL (SLM)
Changes made in Factories Act, 1948in 2016 The Factories (Amendment) Bill, 2016 The Factories Act 1948was an Act of Parliament passed in the United Kingdom by the Labour government of Clement Attlee. It was passed with the intention of safeguarding the health of workers and adopted by India. The Factories (Amendment) Bill, 2016 was introduced in Lok Sabha on August 10, 2016 by the Minister for Labour and Employment, Mr. Bandaru Dattatreya. The Bill amends the Factories Act, 1948. The Act regulates the safety, health and welfare of factory workers. The Bill amends provisions related to overtime hours of work. Key Amendments # (Section 2) Power to make rules on various matters: The Act permits the state government to prescribe rules on a range of matters, including double employment, details of adult workers to be included in the factory’s register, conditions related to exemptions to certain workers, etc.The Bill gives such rule making powers to the central government as well. Powers to make rules for exemptions to workers:Under the Act, the state government may make rules to (i) define persons who hold management or confidential positions; and (ii) exempt certain types of adult workers (e.g. those engaged for urgent repairs) from fixed working hours, periods of rest, etc. The Bill gives such rule making powers to both, the central and state governments. Under the Act, such rules will not apply for more than five years. The Bill modifies this provision to state that the five-year limitation will not apply to rules made after the enactment of this Bill. # (Section 64) Overtime hours of work in a quarter: The Act permits the state government to make rules related to the regulation of overtime hours of work. However, the total number of hours of overtime must not exceed 50 hours for a quarter. The Bill raises this limit to 100 hours. Rules in this regard may be prescribed by the central government as well. # (Section 65) Overtime hours if factory has higher workload: The Act enables the state government to permit adult workers in a factory to work overtime hours if the factory has an exceptional work load. Further the total number of hours of overtime work in a quarter must not exceed 75. The Bill permits the central or state government to raise this limit to 115 Overtime in public interest: The Bill introduces a provision which permits the central or state government to extend the 115-hour limit to 125 hours. It may do so because of (i) excessive work load in the factory and (ii) public interest 69 CU IDOL SELF LEARNING MATERIAL (SLM)
Conclusion The present Factories Act in operation for the last 37 years has provided ample benefits to the factory workers. It has considerably improved their working and employment conditions. The Government is actively considering the introduction of some vital amendments to the Act to keep it in tune with time and make it more effective While dealing with the duties of the Occupier and Factory Manager under Factories Act 1948, altogether we can conclude that the Occupier and Factory Manager has a vital role to play in assuring the health, safety and welfare of the workers as they are the backbone of the industrial sector. It is, however necessary that the workers and their representatives make themselves aware of the various provisions of the Act and safeguard their interests on their own and force the defaulting employer to be conscious of his legal obligations. 6.3 THE PAYMENT OF WAGES ACT, 1936 Introduction With the development of ventures in India, issues identifying with payment of wages to people employed in the industry took a bad turn. The mechanical units were revolt making, payment of wages to their workers at ordinary interims and wages were not uniform. The mechanical workers had to raise their heads against their misuse. In 1926, the Government of India kept in touch with nearby governments to find out the position with respect to the delays which happened in the payment of wages to the people employed in Industry. The material so gathered was put before the Royal Commission on Labor which was designated in 1929. On the report of the Commission, the Government of India rethought the subject and in February 1933 the Payment of Wages Bill, 1933, was presented in the Legislative Assembly and coursed for the purpose of extracting opinions. In 1935 the Payment of Wages Bill, in light of indistinguishable standards from the prior Bill of 1933 yet altogether overhauled(restored) was presented in the Legislative Assembly on 15th February 1935. The Bill was referred to the Select Committee. The Select Committee displayed its report on 2nd September 1935. Consolidating the proposals of the Select Board of trustees, the Payment of Wages Bill, 1935 was again presented in the Legislative Assembly. Objects and Application of this Act This Act manages the payment of wages to specific classes of people employed in industry and its significance can’t be under-evaluated. The Act ensures payment of wages on schedule and with no reasonings aside from those approved under the Act. The Act accommodates the obligation regarding payment of wages, fixation of the pay period, time and method of payment of wages, an obligation to look for the endorsement or approval of the Government for the acts and consent for which fines might be imposed by him and furthermore fixing of the fines. 70 CU IDOL SELF LEARNING MATERIAL (SLM)
The Act doesn’t have any significant bearing to people whose payment or wage is Rs. 24,000/ – or more every month. The Act additionally gives such that a worker can’t contract out of any privilege or right is given or conferred to him under the Act. According to Section 1(4) of this act, It applies primarily to the installment of wages to people utilized or employed in any production line or to people employed (generally than in a factory) upon any railway by a rail route organization or either legitimately or through a sub- temporary worker which can also be a subcontractor, by which an individual is satisfying an agreement with a rail route organization and people utilized in a modern or other foundation which are indicated in sub-clause (a) to (g) of clause (ii) of section 2. Payment of Wages and Deductions from Wages Responsibility for payment of wages Responsibilities for payment of ages are mentioned in Section 3 of the Payment of Wages Act, 1936. Every employer is liable for the payment of all wages to every one of the workers that he utilizes or employes for his work. In some other cases, if the employer names an individual, or on the off chance that there is an individual capable of the business or is designated, at that point, such an individual is liable for the payment of wages. Notwithstanding anything contained in sub-section (1), the business is capable to make the payment of all wages which the Act expects him to make. Actually, if the temporary worker or the individual that the employer assigns to make the payment neglects to do as such, at that point the duty lies with the employer. Each employer will be answerable for the payment to people utilized by him of all wages required to be paid. On account of the industrial facility, the administrator of that manufacturing plant will be obligated to pay the wages to workers utilized by him. On account of mechanical or different foundations, the duty of supervision will be subject to the payment of wages to workers utilized or employed by him. On account of railroads, an individual named by the rail line organization for determined territory will be at risk for the payment of wages to the workers. On account of a contractual worker, an individual assigned by such a temporary worker who is straightforwardly under his charge will be at risk for the payment of the wage to the representatives. On the off chance that he neglects to pay wages to representatives, individuals who employed the workers will be at risk for the payment of wages. Fixation of wage period Each individual who is liable for the payment of wages under section 3 will fix periods in regard to which such wages will be payable. No wage period will surpass one month. That implies pay can be paid on day by day, week by week, fortnightly (for at regular intervals) and month to month as it were. Payment of wage period for payment of wages to representatives by manager ought not to surpass 30 days, for example, one month. In any case, compensation can’t be paid quarterly, half-yearly or once in a year. Time of payment of wages Each individual employed upon or in: 71 CU IDOL SELF LEARNING MATERIAL (SLM)
Any railway, production line or modern or different foundations upon or in which the complete number of employed people is short of what one thousand, must get his wages before the expiry of the seventh day from the most recent day of the pay time frame for which the wages are payable. Some other railway, industrial or mechanical or different foundations, must get his wage before the expiry of the tenth day from the most recent day of the compensation time frame for which the wages are payable. If the employer ends the work of an individual, at that point he should guarantee that the fired employee gets his wages before the expiry of the second working day from the date of the end of employment. The Appropriate Government can exclude to such a degree and furthermore subject to such conditions in the request the individual liable for the payment of wages to utilize or employ people. The business or the individual answerable for paying wages must guarantee that the wages are paid on a working day. Wages to be paid in current coins or currency notes The employer or the individual answerable for making the payment of wages must pay in money coins or cash notes or in both. Further, he can’t pay in kind. Additionally, the employer can pay the wages by means of a cheque or a direct deposit to the bank of the representative subsequent after taking a composed approval from him. Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishments, the employer of which shall pay to every worker employed in such industrial or other establishments, the wages only by giving a cheque or by crediting the payment in his bank account. Deduction which may be made from wages At the time of payment of the salary to personnel, the business enterprises should make deductions in step with this act simplest. The employer should no longer make deductions as he likes. Every quantity paid by the employee to his enterprise is referred to as deductions. The following are not referred to as the deduction:- Stoppage of the increment of worker Stoppage of the promotion of the worker Stoppage of the inducement lack of overall performance by using employee The demotion of the worker Suspension of the worker The above-stated movements taken via the company have to have top and sufficient reason. Deductions which are acceptable according to this act Fines Fine ought to be forced by the employer on worker with the endorsement of the state government or recommended authority. The employer ought to observe the guidelines referenced underneath for and before forcing of fine on the worker. 72 CU IDOL SELF LEARNING MATERIAL (SLM)
Notice leading body of fines on workers ought to be shown in the work premises and it ought to contain exercises that ought not to be made by the representative. Fine ought not to be forced on the worker until he gives the clarification and causes for the demonstration or omission he made. The aggregate sum of fine ought not to surpass 3% of his pay. Fine ought not to be forced on any representative who is younger than 15 years. Fine ought to be forced for one time just on the pay of the employee for the demonstration or exclusion he made. Fines ought not to be recovered in the method for portions or payments from the representative. Fine ought to be recuperated or recovered within 60 days from the date on which fine was forced. Fine ought to be forced on the day act of exclusion made by the worker or the employee. All fines gathered from the worker ought to be credited to basic reserve and use to help the employees. All fines and all acknowledge thereof will be recorded in a register to be kept by the individual answerable for the payment of wages under section 3 in such structure as might be prescribed, and all such acknowledge will be applied uniquely to such purposes useful to the people employed in the factory or foundation as are affirmed by the recommended authority. No fines forced on any employee or worker should be recuperated from him after the expiry of 90days from the day on which the fines were forced. Deductions for absence from duty Deductions can be made by the employer for the nonattendance from duty by the employee for one day or for any period. The sum deducted for nonappearance from the duty ought not to surpass a total which bears a similar relationship to the pay payable in regard to the pay time frame as this time of nonattendance does to such wage-period. (For example:-: if the compensation of a worker is 6000/ – every month and he was missing for obligation for one month. Finding from the compensation for nonattendance of obligation ought not to surpass 6000/-) Employees present for the work spot and will not work without an appropriate explanation will be regarded to be missing from duty. On the off chance that at least 10 people together missing for the duty with no notification and without sensible reason, the employer can make 8 days of wages as a deduction from their pay. Deductions for damages or loss The employer should offer a chance to the employee to clarify the explanation and cause for the harm occurred and deductions made by an employer from the worker compensation ought not to surpass the worth or measure of harm made by the employee.[Sec 10 (2)] All such findings and all acknowledge thereof will be recorded in a register to be kept by the individual answerable for the payment of wages under area 3 in such structure as might be endorsed. 73 CU IDOL SELF LEARNING MATERIAL (SLM)
Deductions for services rendered House-convenience courtesy or administration gave by the employer ought to be acknowledged or accepted by the worker, than just the employer can make a deduction from the wage or salary of the employee. Deduction ought not to surpass a sum equal to the estimation of the house-settlement pleasantry or administration provided. Deductions for recovery of advances If there should be an occurrence of the advance paid to the workers by the employer before business started, such advance ought to be recuperated or recovered by the employer from the principal payment of the wages/pay to the employee. In any case, the employer ought not to recuperate or recover the advances given for the voyaging cost for the worker. Deductions for recovery of loans Conclusions for the recuperation of advances conceded for house-building or different purposes will be dependent upon any guidelines made by the State Government directing the degree to which such advances might be allowed and the pace of intrigue payable subsequently. Deductions for payment to co-operative societies and insurance schemes Reasonings for payments to co-operative societies or deductions for payments to insurance schemes kept up by the Indian Post Office or with worker acknowledgement deductions made for payment of any premium on his extra security strategy to the Life Insurance Corporation will be dependent upon such conditions as the State Government may force. Maintenance of registers and records [Section 13A] Each employer ought to keep up such registers and records giving such points of interest of people 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 different specifics and in such structure as might be recommended. Each register and record required to be kept up and safeguarded for a time of three years after the date of the last entry made in that. It implies for each exchange made inside employer and worker ought to have 3 years of record. Authorities Under the Act The state government may appoint an authority for the purpose of this act. Every authority shall be deemed to be a public servant within the meaning of the Indian Penal Code, 1860 [Section 14(5)]. Inspector The state government may designate a monitor for the purpose of this act. Each Inspector will be regarded to be a community worker or public servant inside the importance of the Indian Penal Code, 1860 [Section 14(5)]. (a)Rights of Inspector The inspector of this act is having powers referenced below: Inspector can make inquiries and assess whether the employers are appropriately complying with the guidelines referenced under this act. 74 CU IDOL SELF LEARNING MATERIAL (SLM)
Inspector with such help, assuming any, as he thinks fit, enter, investigate and search any premises of any railway, production line or mechanical or other foundation at any sensible time to do the objects of this Act. Inspector can manage the payment of wages to people employed upon any railway or in any factory or mechanical or other foundation. Seize or make duplicates of such registers or archives or bits thereof as he may consider significant in regard to an offence under this Act. (b)Facilities to be afforded by Inspector Each employer will bear the cost of an Inspector every sensible office for making any entry, review, supervision, assessment or request under this Act. Authority to hear the claim To hear and choose all cases emerging out of findings from the wages, or deferral in payment of the wages, of people utilized or paid, including all issues, accidental to such claims, there will be an official referenced beneath delegated by the fitting government. any Commissioner for Workmen’s Compensation; or any official of the Central Government practising capacities as – Regional Labor Commissioner; or Assistant Labor Commissioner with at any rate two years’ understanding; or any official of the State Government not underneath the position of Assistant Labor Commissioner within any event two years’ understanding; or a directing official of any Labor Court or Industrial Tribunal, comprised under the Industrial Disputes Act, 1947 (14 of 1947) or under any comparing law identifying with the examination and settlement of mechanical debates in power in the State; or some other official with experience as a Judge of a Civil Court or a Judicial Magistrate, as the power to hear and choose for any predefined territory all cases emerging out of conclusions from the wages, or deferral in installment of the wages, of people utilized or paid around there, including all issues accidental to such cases. Suitable Government thinks about it essential so to do, it might select more than one expert for any predefined zone and may, by general or exceptional request, accommodate the conveyance or portion of work to be performed by them under this Act. Single application in respect of claims from the unpaid group The above-mentioned title is mentioned in the section of this act. There is no need for numerous applications if there are numerous workers whose wages have not been paid. Such all workers can make one application to the expert for payment of wages as indicated by this act. Appeal The provision of appeal is mentioned in section 17 of this act. In the accompanying circumstances the parties who at any point disappointed can appeal to the district court: On the off chance that the application was rejected by the above authorities Employer forced with remuneration surpassing or exceeding 300/- rupees by the authorities. 75 CU IDOL SELF LEARNING MATERIAL (SLM)
On the off chance that the sum surpassing 25/ – rupees retained by the employer to the single unpaid worker. 50/- if there should be an occurrence of numerous unpaid workers. Power of authorities appointed under Section 15 Taking proof and of implementing the attendance of witnesses and compelling the creation of reports. Conditional attachment of property of the employer or another person responsible for payment of wages Where whenever after an application has been made under sub-section (2) of section 15 the authority or where whenever after an intrigue or appeal has been filed under section 17 by an employed individual or any legitimate professional or any authority of an enlisted worker’s organization approved recorded as a hard copy to follow up for his sake or any Inspector under this Act or some other individual allowed by the power to make an application under sub-section (2) of Section 15. The Court alluded to in that segment is fulfilled that the business or another individual answerable for the payment of wages under section 3 is probably going to sidestep payment of any sum that might be coordinated to be paid under section 15 or section 17 the authority or the court as the case might be with the exception of in situations where the authority or court is of conclusion that the parts of the bargains be crushed by the postponement. In the wake of giving the employer or other individual a chance of being heard may coordinate the connection of such an extensive amount the property of the employer or another individual liable for the payment of wages as is in the assessment of the authority or court adequate to fulfil the sum which might be payable under the heading. The arrangements of the Code of Civil Procedure 1908 (5 of 1908) identifying with connection before judgment under that Code will so far as might be applied to any request for connection under sub- section (1). Miscellaneous Penalty for offences under the Act (a)Purposes behind punishment:- Delay in payment of wages Unreasonable deductions Overabundance reasoning for nonappearance of obligation Overabundance reasoning for harm or misfortune to business Overabundance reasoning for house-settlement courtesy or administration (b)Punishable with fine which will not be under 1000/- rupees yet which may stretch out to 7500/ – rupees On the off chance that Wage period surpass one month Failure in payment of wages on a working day Wages not paid in type of current coin or money notes or in both Inability to keep up the record for gathered fines from employees Ill-advised utilization of fine gathered from employees 76 CU IDOL SELF LEARNING MATERIAL (SLM)
Failure of the worker to show notice containing such edited compositions of this Act and of the rules made (c)Punishable with fine which may stretch 3000/ – rupees Whoever blocks an Inspector in the release of his obligations under this Act Whoever adamantly will not deliver on the interest of an Inspector any register or other records. Whoever won’t or wilfully fails to bear the cost of an Inspector any sensible office for making any entry, review, assessment, supervision, or request approved by or under this Act (d)Punishable with fine which will not be under 1000/ – rupees however which may stretch out to 7500/ – rupees Whoever repeats a similar offence submitted previously. Detainment for a term which will not be short of what one month yet which may reach out to a half year and fine which will not be under 3750/- rupees yet which may broaden 20500/ – rupees. Procedure in the trial of offences No Court will take discernment of an objection against any individual for an offence under subsection (1) of section 20, except if an application in regard of the realities establishing the offence has been displayed under section 15 and has been allowed entirely or to a limited extent and the authority engaged under the last section of the investigative Court conceding such application has authorized the creation of the grievance. Before authorizing the creation of a protest against any individual for an offence under subsection(1) of section 20, the power enabled under section 15 or the Appellate Court, all things considered, will give such individual a chance of demonstrating cause against the allowing of such approval, and the assent will not be conceded if such individual fulfils the position or Court that his default was expected to— a bona fide error or bona fide dispute with regards to the sum payable to the employed individual, or the event of a crisis, or the presence of remarkable conditions, with the end goal that the individual answerable for the payment of wages was not able, however practising sensible persistence, to make brief payment, or the failure of the employed individual to apply for or acknowledge payment. No Court lobby take awareness of a repudiation of section 4 or section 6 or of negation of any standard made under section 26 aside from on an objection made by or with the assent of an Inspector under this Act. In forcing any fine for an offence under subsection (1) of section 20 the Court will think about the measure of any payments previously granted against the charged in any procedures taken under section 15. Bar of suits No Court will engage any suit for the recovery of wages or of any deduction from compensation to the extent that the entirety so guaranteed- 77 CU IDOL SELF LEARNING MATERIAL (SLM)
structures the subject of an application under section 15 which has been displayed by the offended party and which is pending before the power selected under that section or of intrigue under section 17; or has shaped the subject of a course under section 15 for the offended party; or has been decreed, in any proceeding under section 15, not to be owed to the offended party; or could have been recovered by an application under section 15. Contracting out Any agreement or understanding regardless of whether made previously or after the beginning of this Act, whereby an employed individual gives up any privilege given by this Act will be invalid and void to the extent that it implies to deny him of such right. Display by notice of abstract of the Act The individual liable for the payment of wages to people employed in a plant will cause to be shown in such processing plant a notification containing such abstracts of this Act and of the standards made thereunder in English and in the language of most of the people employed in the industrial facility, as might be recommended. Delegation of powers The suitable Government may, by warning in the Official Gazette, direct that any power exercisable by it tinder this Act will, in connection to such issues and subject to such conditions, assuming any, as might be indicated toward the path, be additionally exercisable – (a) where the suitable Government is the Central Government, by such official or authority subordinate to the Central Government or by the State Government or by such official or authority subordinate to the State Government, as might be indicated in the notice; (b) where the suitable Government is a State Government, by such official or authority subordinate to the State Government as might be determined in the notification. Payment of undisbursed wages in cases of death of the employed person -Paid by the employer to the individual assigned by the worker. -Wage stored by the employer with the recommended authority, the business will be released of his liability to pay those wages. -Where no such designation has been made or where for any reason such sums can’t be paid to the individual so selected, be saved with the endorsed position who will manage the sums so kept in such a way as might be recommended. Rule-making power Specifically and without bias to the simplification of the previous power, rules made under sub-section (2) may- (a) require the upkeep of such records, registers, returns and notification as are essential for the authorization of the Act and recommend the structure thereof; (b) require the display in an obvious spot on-premises where work is carried on of notification determining paces of wages payable to people utilized on such premises; 78 CU IDOL SELF LEARNING MATERIAL (SLM)
(c) accommodate the regular inspection of weights, measures and weighing machines utilized by employers in checking the wages of people employed by them; (d) recommend the way of pulling out of the days on which wages will be paid; (e) recommend the position capable to favour under sub-section (1) of section 8 and deductions in regard to which fines might be forced; (f) recommend the methodology for the inconvenience of fines under section 8 and for the creation of the deductions to in section 10; (g) recommend the conditions subject to which deductions might be made under the proviso to sub-section(2) of section 9; (h) recommend the power equipped to support the reasons on which the returns of fines will be consumed; (i) prescribe the degree to which advances might be made and the portions by which they might be recovered concerning clause (b) of section 12; (j) direct the scale of costs which might be permitted in procedures under this Act; (k) prescribe the amount of court-charges payable in regard to any procedures under this Act; and (l) prescribe the modified works to be contained in the notification required by section 25. (4) In making any rule under this section, the State Government may give that a contradiction of the rule will be punishable with fine which may reach out to 200 rupees. (5) All guidelines made under this section will be dependent upon the state of previous publication, and the date to be determined under clause (3) of section 23 of the General Clauses Act, 1897, will not be under a quarter of a year from the date on which the draft of the proposed principles was distributed. 6.4 SUMMARY The present Factories Act in operation for the last 37 years has provided ample benefits to the factory workers. It has considerably improved their working and employment conditions. The Government is actively considering the introduction of some vital amendments to the Act to keep it in tune with time and make it more effective While dealing with the duties of the Occupier and Factory Manager under Factories Act 1948, altogether we can conclude that the Occupier and Factory Manager has a vital role to play in assuring the health, safety and welfare of the workers as they are the backbone of the industrial sector. It is, however necessary that the workers and their representatives make themselves aware of the various provisions of the Act and safeguard their interests on their own and force the defaulting employer to be conscious of his legal obligations. 79 CU IDOL SELF LEARNING MATERIAL (SLM)
The Code endeavours to bind together the meaning of ‘wages’, which is a stage towards giving better clarity. Nonetheless, the arrangement of independent definitions for ’employee’ and ‘worker’ and their use inside the Code leaves space for confusion. Further, the Code looks to change the ‘Inspector Raj’ perception in connection to the Government’s guideline of work by presenting monitors cum-facilitators rather than simply examiners. The Code has made a crucial change regarding offences and punishments. Significant justification and proportionality, with a purpose to help instead of hampering the lead of business, is clear from the reformatory arrangements. The Code energizes innovation selection in issues, for example, method of payment of wages, assessment strategies, which are planned for accomplishing its digitalisation objectives in administration. The Code is a good-intentioned bit of enactment which means to adjust the interests of the employer and the worker. In spite of the fact that the Code contains significant sections of the revoked enactments, it makes a not too bad attempt to replace theirs out of date provisions. The provisions of the Code move trust in the business network and further clearness can be acknowledged once the subordinate enactments and rules under the Code are set up. It would likewise be interesting to measure how different codes identifying with government disability, mechanical wellbeing and welfare, and modern relations will associate with the Code of Wages once they are passed. 6.5 KEYWORDS o “adult” means a person who has completed his eighteenth year of age; (b) “adolescent” means a person who has completed his fifteenth year of age but has not completed his eighteenth year; 4 [(bb) “calendar year” means the period of twelve months beginning with the first day of January in any year;] (c) “child” means a person who has not completed his fifteenth year of age; 5 [(ca) “competent person”, in relation to any provision of this Act, means a person or an institution recognised as such by the Chief Inspector for the purposes of carrying out tests, examinations and inspections required to be done in a factory under the provisions of this o Act having regard to— (i) the qualifications and experience of the person and facilities available at his disposal; or (ii) the qualifications and experience of the persons employed in such institution and facilities available therein, with regard to the conduct of such tests, examinations and inspections, and more than one person or institution can be recognised as a competent person in relation to a factory; (cb) “hazardous process” means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye- 80 CU IDOL SELF LEARNING MATERIAL (SLM)
products, wastes or effluents thereof would— (i) cause material impairment to the health of the persons engaged in or connected therewith, or (ii) result in the pollution or the general environment: Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule;] (d) “young person” means a person who is either a child or an adolescent; (e) “day” means a period of twenty-four hours beginning at midnight; (f) “week” means a period of seven days beginning at midnight on Saturday night or such other night as may be approved in writing for a particular area by the Chief Inspector of Factories; (g) “power” means electrical energy, or any other form of energy which is mechanically transmitted and is not generated by human or animal agency; (h) “prime mover” means any engine, motor or other appliance which generates or otherwise provides power; (i) “transmission machinery” means any shaft, wheel, drum, pulley, system of pulleys, coupling, clutch, driving belt or other appliance or device by which the motion of a prime mover is transmitted to or received by any machinery or appliance; (j) ”machinery” includes prime movers, transmission machinery and all other appliances whereby power is generated, transformed, transmitted or applied; (k) “manufacturing process” means any process for— (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; or 1 [(ii) pumping oil, water, sewage or any other substance; or] (iii) generating, transforming or transmitting power; or 2 [(iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; 3 [or]] (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; 3 [or] 3 [(vi) preserving or storing any article in cold storage;] (l) “worker” means a person 4 [employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not], in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process 3 [but does not include any member of the armed forces of the Union]; (m) “factory” means any premises including the precincts thereof— (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is 81 CU IDOL SELF LEARNING MATERIAL (SLM)
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 5 [the Mines Act, 1952 (35 of 1952)], or 6 [a mobile mobile unit belonging to the armed forces of the Union, railway running shed or a hotel, restaurant or eating place]. 6.6 LEARNING ACTIVITY 1. What is the Objective of Factories Act? 2. What is the Objective of The Payment of Wages Act? 3. What is the importance of Factories Act? 4. What is the importance of The Payment of Wages Act? 5. What is the provision under Factories Act, with regard to Canteens? 6.7 UNIT END QUESTIONS Descriptive Questions: Long Questions: 1. What is the object of Payment of Wages Act? 2. What is included under “Industrial or other establishment” under The Payment of Wages Act? 3. What is the Responsibility of the Employer for payment of wages under the act? 4. What are the deductions which can be made from Wages? 5. State the Duty of Inspectors under the Payment of Wages Act. 6. What are the reasons and penalty for offences under the act. SHORT ANSWERS: 1. Write a note on the Historical background of the Factories Act? 2. Define Factory under the Factories Act? 3. Define Manufacturing Process under the Factories act. 4. Define “Worker” under the Factories act. 5. Define Occupier under the Factories Act 6. Explain Artificial Humidification 7. Write a note on Labour and Welfar 82 CU IDOL SELF LEARNING MATERIAL (SLM)
MULTIPLE CHOICE QUESTIONS: 1. In which year did factories act come into force? a. 23rd September, 1948 b. 1st April, 1949 c. 4th April, 1949 d. 12th September, 1948 How many days in advance does the occupier of a factory premises gives notice of occupancy to the chief inspector? a. 15 days b. 20 days c. 10 days d. 25 days 3.What are the general duties of an Occupier? A. Maintenance of a plant and system of work in factory are safe, without risks to health. B. Ensure safety and absence of risks to health in, use, handling, storage and transport of articles and substances. C. Specifying the area D. Defining the local mean time ordinarily deserved therein. a. D b. C c. Only A & B d. All of the above 4.Which provisions regarding health are mentioned in the sections 11 to 20 in factories act? A. Cleanliness B. Dust and fumes C. Ventilation and temperature D. Disposal of wastes a. Only B & C b. Only A & D 83 CU IDOL SELF LEARNING MATERIAL (SLM)
c. None of the above d. All of the above 5.As per the factories act, after how many years should the factory premises be painted and refurbished? a. 5 years b. 2 years c. 10 years d. Annually 6.8 REFEERENES 84 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT – 7 PROTECTIVE LEGISLATION STRUCTURE 7.0 Learning Objectives 7.1 Introduction 7.2 The Minimum Wages Act, 1948 7.3 Summary 7.4 Keywords 7.5 Learning Activity 7.6 Unit End Questions 7.7 References 7.0 LEARNING OBJECTIVE At the end of this unit you will learn all about: The Minimum Wages Act 7.1 INTRODUCTION Labour laws in India consist of significant legislations such as the Industrial Dispute Act, 1947, Payment of Bonus Act, 1965, Workmen Compensation Act, 1923, Minimum Wages Act, 1948, etc. In the Indian Constitution, labour laws fall under the Concurrent List, which gives power to both Central and state governments to legislate and make rules on the matter. These legislations play significant roles in protecting the rights and interests of the workers, providing employment opportunities to the workers, protecting employees from exploitation, creating a healthy work environment, etc. 7.2 THE MINIMUM WAGES ACT, 1948 The system of paying minimum wages to the employees has been globally accepted as a system to combat poverty and stabilise the economy. The Minimum Wages Act, 1948 was brought into force by the Parliament of India in order to provide due remuneration to the workers and to prevent unfair exploitation of the workers by the employers. The Act lays down the minimum rates of wages and fixing of minimum wage rates for both skilled and unskilled 85 CU IDOL SELF LEARNING MATERIAL (SLM)
labour and aims to provide a decent standard of living for them. The Act grants power to both the Central and state governments to regulate, review and revise the rate of minimum wages paid to the employees employed in the scheduled employment under their respective jurisdiction. The Act does not discriminate between men and women, it pays all the employees equally for doing the same work. Understanding the term minimum wage The International Labour Organisation (ILO) has defined the term minimum wage as the lowest amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, that cannot be reduced by collective agreement or an individual contract. Around 90 member states of the ILO follow the provision of minimum wage. The purpose of minimum wage is to protect the workers from unduly low pay. It enables them to earn adequate wages for the work done by them and to maintain a minimum living standard. It also acts as a tool to eradicate poverty and to remove discrimination between men and women. This system has been designed and developed in a way to supplement and reinforce other social and employment policies, including collective bargaining, which is used to set terms of employment and working conditions. In India payment of minimum wages is regulated and administered by the Minimum Wages Act, 1948. Since, India offers one of the most competitive labour costs in Asia, with the national-level minimum wage at around INR 176 which amounts to INR 4576 in a month. However, it is the national-level wage which will vary considering the geographical location and other relevant factors. In India, a complex method of setting a minimum wage is used which defines nearly 2,000 different types of jobs for unskilled workers and over 400 categories of employment which provides a minimum daily wage for each type of job. Types of wages In 1948 a tripartite committee, known as the ‘Committee on Fair Wages’ was established. The committee’s report was the benchmark for the formulation of wage policy in India. The committee not only set guidelines for wage rates in the country but also laid down three kinds of wages namely: 1. Minimum wage: This is the type of wage provided for bare subsistence so that the workers can maintain a decent standard of living such as providing for education, medical requirements and an adequate level of comfort. 2. Fair wage: Any wage paid to the employees that are more than the minimum wage is known as a fair wage. It is the wage that seeks to maintain a level of 86 CU IDOL SELF LEARNING MATERIAL (SLM)
employment in the industry and also looks after the industry’s capacity to pay sufficient remuneration to the employees. 3. Living wage: A living wage not only meets the minimum requirement of the employees provided by the employers but also allows individuals or families to afford adequate shelter, food, and other necessities. It also includes health, sanity, education, dignity, comfort, and provide for any contingency. Need for a meaningful minimum wage In India, the minimum wages fixed for the labourers are so low that it is not enough even for two meals a day, leave aside the needs of health, education and shelter. The main objective behind minimum wages of the workers should be primarily because of two reasons: Social objective: Minimum wage is essential for abolishing poverty by providing a basic standard of living to the employees. Economic objective: The rate of minimum wage should be fixed in such a way that would motivate the workers to put in maximum efforts at their jobs and thus improve the economy of the country and their standard of living. Minimum wage legislation in India requires the active support of workers, trade unions, and labour associations. It would also require sincerity on part of the labour departments in each state in order to determine the minimum wage rate on the basis of ethical and humanitarian concerns to ensure basic subsistence for workers in unorganised sectors. Ignorance and illiteracy are also the primary reasons for the exploitation of the employees in the unorganised sectors. Trade unions and NGOs can help by making the workers aware of the legal provisions of the minimum wage rate and the benefits to which they are entitled. Furthermore, minimum wage data is not readily available to the general public. Only limited official data is available from the National Labour Ministry website which may or may not be updated regularly and in a timely manner. The information available does not permit extensive comparison of wages in formal and informal sectors due to different formats of reporting or recording of wage rates in each state. Need for Minimum Wages Act, 1948 The Minimum Wages Act, 1948 was enacted by the Indian Legislature to deal with matters relating to providing the minimum wage to the workers so that they can afford their basic needs and maintain a decent standard of livelihood. The Act further ensures a secure and adequate living wage for all labourers and it also guarantees that an employee earns enough to provide for his family. The Act authorises both Central and state governments in fixing the rate of minimum wage. The Minimum Wages Act, 1948 has also laid down a provision for revision of minimum wages in order to cope with the changing prices of basic commodities. 87 CU IDOL SELF LEARNING MATERIAL (SLM)
The Act seeks to provide better protection of the rights of the employees by establishing advisory boards to resolve any dispute between the employer and employee regarding the payment of minimum wage to the employees. The Act further appoints a Commissioner for Workmen’s Compensation or any other officer of the Central Government exercising functions as a Labour Commissioner for any region, with an experience as a judge in order to hear and decide cases concerning non-payment or payment of less than the minimum wages to the employees. The Act also states provisions for penalising any employer who fails to provide the minimum wage to the employer and contravenes any rule or order made under the Act. Thereby, it can be said that the enactment of this Act was extremely crucial since it aims to expand the concept of social justice to the workers of scheduled employment and also provide them with the rates of minimum wages fixed by the statute. It also protects the rights and interests of the workers and prevents the workers from being wrongfully exploited by their employers. Objectives of Minimum Wages Act The significance of the Minimum Wages Act, 1948 is mentioned below: 1. To fix the minimum rates of wages that are to be provided to the employees and revise such rates of wages every five years. 2. To secure an adequate living wage for all the labourers in the interest of the public. 3. To fix the daily working hours of the employees. 4. To prevent exploitation of the workers by the employers. 5. To ensure that the labourers can maintain a decent standard of living. 6. To provide basic physical needs, good health and a level of comfort to the employees. 7. To penalise the employers when they fail to provide minimum wages to the workers. 8. To establish advisory boards to regulate and administer the provisions of the Act. 9. To lay down the powers and duties of the inspectors for the purposes of this Act. 10. To prevent any employer from wrongfully infringing the right of any employees. 11. To establish appropriate authorities where the employees can seek redressal when the employer has failed to pay the daily wage. 12. To authorise the Central and state governments to make rules and regulations for the purposes of this Act. Application of Minimum Wages Act 88 CU IDOL SELF LEARNING MATERIAL (SLM)
The Minimum Wages Act, 1948 is applicable to the whole of India as laid down in Section 1 of the Act. It applies to any employment if it employs 1000 employees in the respective state. However, it does not apply to any employees in any undertaking owned by the Central Government or of the federal railway, except with the consent of the Central Government. Essential provisions under Minimum Wages Act The significant provisions of the Minimum Wages Act, 1948 are mentioned below. Minimum rates of wages Under Section 3 of the Act, the minimum wages payable to the employees are to be fixed by the appropriate government. However, this Section also mentions that the rate of wages shall be revised every five years. The appropriate government may fix: 1. The minimum rate of wages for time work, 2. the minimum rate of wage for piece work, 3. 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, 4. a minimum rate of wage to substitute the for the minimum rate which would otherwise be applicable, in respect of overtime work done by employees. In fixing or revising minimum wages under Section 3 of the Act: 1. Different minimum rates of wages may be fixed for; different classes of work, different scheduled employment, different localities, different age groups, etc. 2. Minimum wages may be fixed by the wage period such as; by the hour, by the day, etc. Section 4 of the Minimum Wages Act, 1948 states that the minimum wages fixed by the appropriate government must consist of: 1. A basic rate of wages and a special allowance must be adjusted at necessary intervals by the appropriate government to match the cost of living of the employees. 2. The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities must be computed by a competent authority and at such intervals specified by the appropriate government. Section 5 states that in order to fix or revise the minimum wage of the employees the appropriate government may establish as many committees and subcommittees necessary to hold enquiries in matters regarding fixing and revision of minimum wage. Further, the appropriate government by notification to the Official Gazette publish its proposal for the information of the individuals who are likely to be affected by such information and thereby 89 CU IDOL SELF LEARNING MATERIAL (SLM)
specify the date which must not be less than two months from the date of notification of the proposals that will be taken into consideration. Advisory board Under Section 7 the appropriate government must appoint advisory boards for coordinating the work of the committees and subcommittees mentioned in Section 5 and also for advising the appropriate government generally in the matter of fixing and revising minimum rates of wages. Central Advisory Board In the matters of fixation and revision of minimum rates of wages of the employees, the Central Government shall appoint a Central Advisory Board. The Central Advisory Board shall consist of: 1. Members to be nominated by the Central Government representing employers and employees in the scheduled employment, who shall be equal in number, and 2. Independent persons not exceeding one-third of its total number of members. One such member shall be appointed as the Chairperson by the Central Advisory Board. Committees Section 9 of the Act states that the members of committees, sub-committees, and Advisory Boards shall be appointed by the appropriate government. Individuals who are appointed to these committees shall be representatives of employers and employees in scheduled employments and shall be equal in number. The appropriate government shall appoint such an independent person to be the Chairman of the committee. Wages in kind under the Act Section 11 of the Minimum wages Act, 1948 mentions how the wages will be payable to the employees. 1. Minimum wages under this Act shall be paid in cash. 2. The appropriate government under necessary circumstances by notification to the Official Gazette authorise the payment of the minimum wages either wholly or partly in kind. 3. The appropriate government by notification to the Official Gazette authorised a provision for the supply of essential commodities at concession rates. 4. The cash value of wages and the concession rates shall be authorised in the prescribed manner stated under the Act. 90 CU IDOL SELF LEARNING MATERIAL (SLM)
The payment of wages to the employees under this Act should be done in accordance with Section 12 of the Act, which states that the employer shall pay the minimum rate of wages fixed to every employee working under him within such time and manner prescribed under the Act. Fixing hours for a normal working day Section 13 specifies that the appropriate government may: 1. Fix the working hours of a normal day including one or more specified intervals. 2. Provide a day of rest in every period of seven days to all the employees or a class of employees, and adequate remuneration must be provided to the employees during the day of rest. 3. Provide payment to the employees on the day rest which shall not be less than the overtime rate. When an employee works more than the specified number of hours constituting a normal working day, the employer shall be liable to pay him for every hour or part of the hour at the overtime rate fixed under this Act or under any law of the appropriate government for the time being in force. Furthermore, under Section 15 if an employee has worked less than the required number of hours constituting a normal working day they shall be entitled to receive wages in accordance with work done by him on that day as if he has worked a full day. However, he might not receive the wages of a full day under certain circumstances. Maintenance of registers and records Under Section 18 of the Minimum Wages Act, 1948 every employer will be liable to maintain registers and records relating to the number of employees employed under him, the work done by them, the wages paid to them, the work performed by them, maintain the receipts given by the employers and any other relevant information. Inspectors In this Act, the appropriate government by notification to the official gazette shall appoint inspectors in a manner prescribed under the Act. The inspectors shall be liable to exercise their functions within the local limits of their jurisdiction. 1. The inspectors shall enter the premises or places within the local limits of their jurisdiction where the employees are employed to work in respect of which minimum rates of wages have been fixed under this Act, for the purpose of examining the register, record of wages, etc. 91 CU IDOL SELF LEARNING MATERIAL (SLM)
2. To examine any person on the premises or places who is an employee. 3. Seize or take copies of registers, records of wages, or other required documents under this act which he may consider relevant in case of commission of any offence. 4. The inspector will be required to exercise any other power as may be prescribed under the Act. Every inspector under this Act will be deemed to be a public servant within the meaning of the Indian Penal Code,1860. Claims The appropriate government may by notification to the Official Gazette appoint any Commissioner for Workmen’s Compensation or any officer of the Central Government exercising functions as a Labour Commissioner for any region, with an experience as a judge to hear and decide cases in a particular region about matters relating to non-payment or payment of less than the minimum wages to the employees. When an application under Section 20 of the Minimum Wages Act, 1948 is made to the authority, the authority shall give adequate opportunities of being heard to both the applicant and the employer. Under this Section, every direction of the authority shall be binding and final. The authority appointed under the Act shall have the powers of a civil court under the Code of Civil Procedure, 1908 for the purposes of taking evidence, enforcing the attendance of witnesses, production of documents, etc. Procedure before the authority The procedure before the authority in the matters relating to non-payment or payment of less than the minimum wages to the employees shall take place in the following manner as prescribed under the Act. The prescribed authority shall give adequate opportunities of being heard to the employer, applicant or any other person relevant to the case. In case of non-payment of wages, or delay in the payment of wages the authority shall direct the refund of such amount to the applicant of the amount unpaid, or delayed along with the compensation for the damages suffered by the employee. No compensation will be awarded to the employee if the authority is satisfied that the delay in payment of wages of the employee was a bona fide error. The authorised person was unable to make the payment even though they exercised due diligence. Penalties for offences 92 CU IDOL SELF LEARNING MATERIAL (SLM)
Section 22 of the Minimum Wages Act, 1948 an employer who fails to provide minimum rates of wages to the employees or contravenes any rule or order made under Section 13 of the Act shall be punished with imprisonment for a term which may extend to six months or fine not less than five hundred rupees or both. Exemptions of the employers in certain cases When an employer is accused under this Act and brought before the court he will be exempted from such offence under the following circumstances: 1. The employer has used due diligence in the execution of all the provisions of the Act. 2. The other person has committed the offence without his knowledge, connivance or consent. Then in that case the other will be held liable as if he were the employer and the employer will be discharged. The power of the Central Government to make rules Section 29 of the Minimum Wages Act, 1948 authorises the Central Government to make rules by notification to the Official Gazette in matters relating to the term of office of the members, the manner of voting, and the mode of conducting business by the Central Advisory Board, and other relevant matters. The rules made by the Central Government must be laid before the Parliament while it is in session for a total period of thirty days which may consist of one session or two successive sessions. Furthermore, Section 30 of the Act also authorises the state government to make rules by notification to the Official Gazette for carrying out the purposes of this Act. Constitutional validity of Minimum Wages Act The constitutional validity of this Act was challenged before the court in various cases. However, the judiciary played a critical role in determining that the Act was constitutionally valid and it protects the interests of the workers so that they have access to food, shelter, clothing, education, medical assistance, etc. The judiciary also stated that failure to pay below the minimum wage rate amounts to forced labour. Not violative of Article 19 of the Constitution The constitutional validity of the Minimum Wages Act, 1948 was first challenged in the case, Bijay Cotton Mills Ltd. v. The State of Ajmer, 1954. In this case, there was an industrial 93 CU IDOL SELF LEARNING MATERIAL (SLM)
question between the industry and the workers regarding the improvement of wages. The company alleged before the court that the provisions of the Act are illegal since it puts unreasonable restrictions on the employer as he is deterred from resuming his trade or business unless he is ready to pay the minimum wages to the workers. The rights of the employees are also limited, as they are disabled from working in any trade or industry unless the terms are agreed to between them and their employers. Therefore, the Act is violative of Article 19(1)(g) of the Indian Constitution which guarantees freedom of trade and business. However, the Supreme Court of India held that the provisions of the Act are not unreasonable and permissible under Article 19 of the Indian Constitution, moreover, the provisions of the Act have been imposed for the benefit of the general public as the Directive Principles of State Policy embodied under Article 43 of the Constitution. Thus, it can be said that because of certain provisions of the Act the employers might find it difficult to carry on or start a business, but it is done in order to protect the general interest of the public and so the Act can not be deemed unreasonable or stuck down on such grounds. Similarly, in the case Bhikusa Yamasa Kshatriya v. Sangamner Akola Bidi Kamgar Union, 1958, the Bombay High Court held that the constitution of the committees and the Advisory Boards under the Minimum Wages Act, 1948 did not contravene the statutory provisions of the prescribed legislature and further on careful examination of the Act it was noticed that Section 3(3)(iv) of the Act does not contravene Article 19(1) of the Indian Constitution neither does it violate equal protection of the law guaranteed by the Constitution. Not violative of Article 14 of the Constitution Furthermore, the Act is not violative of Article 14 of the Constitution which states equality before the law. It was brought into light by India’s Union Labour and Employment Minister Shri Mallikarjuna Kharage that the variation of minimum wages of workers in different states is due to the different socio-economic conditions, prices of commodities, paying capacity, productivity, etc. which impacts the wage rate paid to the workers in a particular state. In the case, N.M. Wadia Charitable Hospital v. State of Maharashtra, 1986, it was held by the Bombay High Court that fixing different rates of minimum wages for different localities is permitted under the Constitution and the labour laws of the country, thus fixing different rates of minimum wages for different areas is not discriminatory and not violative of the Constitution. MGNREGA wages rate or minimum wages rate Mahatma Gandhi National Rural Employment Guarantee Act is a scheme which guarantees employment for 100 days at a rate of wage of INR 120 per day that came into force in 2009. The Act is applicable to everyone whether they are below the poverty line or above. The Central 94 CU IDOL SELF LEARNING MATERIAL (SLM)
Government removed the MNREGA wage rates from the state’s lowest minimum wage rates in January 2009 when states such as Uttar Pradesh, Rajasthan and Maharashtra revised and increased their minimum wage rates. This had serious consequences across the nation for the MNREGA scheme directly in the Central Government budget. Protests began in various parts of the country concerning workers’ welfare, poor payments, unclear sources of funds, etc. The National Advisory Council recommended that MGNREGA wage rates should be coordinated with the minimum wage rates, but this was rejected by the Central Government. The Central Government stuck on its decision to freeze MGNREGA wages even after a Supreme Court order. Eventually, the Prime Minister agreed to accept the recommendations and converted MNREGA wages into minimum wage rates until an expert committee produced a desired index. 7.3 SUMMARY The Minimum Wages Act, 1948 was enacted to safeguard the rights and interests of the workers working in some scheduled class of employment which is laid down under the Act. The Act seeks to provide equal employment opportunities and adequate remuneration for maintaining a decent standard of livelihood for the workers. The provisions under the Act such as revision of wages at an interval of every five years and fixing working hours in a normal working day portray how the Act prevents undue exploitation of the workers. The Act further establishes advisory boards and committees that the workers can approach to seek redressal regarding cases concerning non-payment of wages or delay in the payment of wages by their employers. The Act also grants adequate powers to the inspectors to look after the welfare of the workers. Therefore, this Act plays a crucial role in providing the basic needs of the workers of a scheduled category of employment, to grant adequate wages to the workers to survive with their livelihood and also to promote the Directive Principles of State Policy laid down under Article 43 of the Constitution of India 7.4 KEYWORDS (a)\"adolescent\" means a person who has completed his fourteenth year of age but has not completed his eighteenth year; (aa) \"adult\" means a person who has completed his eighteenth year of age (b) \"appropriate Government\" means,- (i) in relation to any scheduled employment carried on by or under the authority of the [3] [Central 95 CU IDOL SELF LEARNING MATERIAL (SLM)
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 subsection (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; 7.5 LEARNING ACTIVITY 1. Explain the term “Minimum Wages” 2. Explain the Type of Wages 3. What is the need for a meaningful minimum wage? 4. What are the Objectives of Minimum Wages act? 5. Explain the application of Minimum Wages Act? 96 CU IDOL SELF LEARNING MATERIAL (SLM)
7.6 UNIT END QUESTION DESCRIPTIVE QUESTIONS: LONG ANSWERS: 1. What are the Essential Provisions under the Minimum Wages Act? 2. What is the role of Advisory Board under the Act? 3. Explain Committees under the Act? 4. Explain Wages in Kind under the Act? 5. How is the Maintenance of Registers and records under the Minimum Wages Act, done? 6. Explain the Penalties for offences under the Act? 7. Explain the Exemption of Employer in certain cases? SHORT ANSWERS: 1. What is the Constitutional Validity of the Minimum Wages Act? 2. Explain the Exemption of Employer in certain cases. 3. MGNREGA wages rate or Minimum Wages rate. Explain. 4. Explain the Power of the Central Govt. to make rules under the Act. 5. Explain Claims 6. Explain Minimum Wage 7. Explain Fair Wage 8. Explain Living Wage. MULTIPLE CHOICE QUESTIONS: 1) When did the Minimum Wages Act, come into force? A) 01 April 1966 B) 15 March 1948 C) 01 May 1960 D) 01 April 1949 97 CU IDOL SELF LEARNING MATERIAL (SLM)
2) Which section of the Minimum Wages Act 1948 deals with a Single application in respect of a number of employees? A. Section 12 of the Minimum Wages Act 1948 B. Section 21 of the Minimum Wages Act 1948 C. Section 14 of the Minimum Wages Act 1948 D. Section 20 of the Minimum Wages Act 1948 3. Which section of the Minimum Wages Act 1948 deals with the Power of the State Government to add to Schedule_ ? A. Section 27 of the Minimum Wages Act 1948 B. Section 24 of the Minimum Wages Act 1948 C. Section 23 of the Minimum Wages Act 1948 D. Section 28 of the Minimum Wages Act 1948 4.Section 15 of the Minimum Wages Act 1948 deals with_______? A. Composition of committees, etc. B. Wages of a worker who works for less than a normal working day C. Advisory Board. D. Single application in respect of a number of employees. 5.Payment of minimum rates of wages., is provided in section____ of the Minimum Wages Act 1948 A. Section 34 of the Minimum Wages Act 1948 B. Section 22 of the Minimum Wages Act 1948 C. Section 12 of the Minimum Wages Act 1948 D. Section 28 of the Minimum Wages Act 1948 ANSWERS: 98 CU IDOL SELF LEARNING MATERIAL (SLM)
1-B, 2-B, 3-A, 4-B, 5-C 7.7 REFERENCES 1. ps://deliverypdf.ssrn.com/delivery.php?ID=2741130640650740750 930691240660831071050330030770550381100640851001211170 051060120710010300310030120320021001030300261260280290 390380640790791150080930041150980240770360870491170120 650821260100901081230710220931250251250891201251031220 24089106094095078&EXT=pdf&INDEX=TRUE 2. https://blog.ipleaders.in/labour-law-indian-laws-caselaws/ 3. http://www.smmpalwal.com/SILR_PALWAL/pdf/2ndsem/ballb2/Topi c- OBJECTS%20AND%20CONSTITUTIONAL%20VALIDITY%20OF%20 %20THE%20M.W%20ACT%201948-converted.pdf 4. https://www.lawyerservices.in/N-M-Wadia-Charitable-Hospitals- Versus-State-of-Maharashtra-1986-09-23 5. https://clc.gov.in/clc/sites/default/files/MinimumWagesact.pdf 6. https://www.indiafilings.com/learn/minimum-wages- act/#:~:text=The%20Minimum%20of%20Wages%20Act%20applie s%20to%20the%20following%20 entities,employees%20in%20the%20respective%20state. 7. https://blog.ipleaders.in/minimum-wages-act-1948/ 8. http://labourbureau.gov.in/MW2k6%20Section- 1.htm#:~:text=Therefore%2C%20a%20Central%20Advisory%20C ouncil,of%20fair%20ways%20to%20 labour 99 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT – 8 SOCIAL SECURITY LEGISLATION STRUCTURE 8.0 Learning Objectives 8.1 Introduction 8.2 The Workmen’s Compensation Act, 1923 8.3 The Employees State Insurance Act, 1948 8.4 Summary 8.5 Keywords 8.6 Learning Activity 8.7 Unit End Questions 8.8 References 8.0 LEARNING OBJECTIVE At the end of this Unit you will be able to learn about: The Workmen’s Compensation Act, 1923 The Employees State Insurance Act, 1948 8.1 INTRODUCTION Every employee needs a secured job and wants to get compensation for the expenses he has incurred. This is a requirement that needs to be fulfilled by the company whether it is small scale or large scale. After all, a company’s success depends on its employees. Therefore, the protection of employees’ and their safety is a top priority of a company. This article is all about how much compensation is given, under what conditions, who is entitled to claim compensation and a lot more. 8.2 THE WORKMEN’S COMPENSATION ACT, 1923 Main features of the Act The “Employees Compensation Act, 1923” is an Act to provide payment in the form of compensation by the employers to the employees for any injuries they have suffered during an accident. Earlier this Act was known as the Workmen Compensation Act, 1923. When the employer is not liable to pay compensation- 100 CU IDOL SELF LEARNING MATERIAL (SLM)
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