SHAIKH A J-8055565757

Short Notes:-

Amount of compensation:-
Subject to the provisions of this Act, the amount of compensation shall be as follows, namely-
1. Compensation in case of death:-
Where death results from the injury, an amount equal to 50% of the monthly wages of
the deceased workman multiplied by the relevant factor or an amount of Rs. 80000/-,
whichever is more
2. Permanent total disablement:-
Where there is total permanent disablement resulting from the injury suffered, the
worker is entitled to be paid 60% of his monthly wages multiplied by the relevant
factor, or an amount of Rs. 90000/-, whichever is more.
3. permanent partial disablement :-
In the case of an injury specified in Part II of Schedule I, such percentage of the
compensation which would have been payable in the case of permanent total
disablement as is specified therein as being the percentage of the loss of earning
capacity caused by that injury, and
Where the injury is not specified in Schedule I, such percentage of the
compensation payable in the case of permanent total disablement as is proportionate to
the loss of earning capacity ( as assessed by the qualified medical practitioner)
permanently caused by the injury.

Notice and Claims:-

A workman who is injured by an accident must give a notice of it in writing.
This must be done in proper time which depends upon the individual cases. The notice
must contain
1. the name and address of the workman injured
2. the date of the accident, and
3. the cause of the injury.
The notice has to be served upon the employer or on any one of the several employers
or upon any person who is responsible to the employer for the management of the business. It
may be delivered to the person concerned by hand or sent by registered pose addressed to the
residence or any office or place of business.
Any claim for compensation must be made within two years from the date of accident
or in case of death, within two years from the date of death. In case of occupational diseases it

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would be difficult to ascertain the date on which the disease is contracted. Therefore it is
provided that the first day of the period during which the workman was continuously absent
from work in consequence of the contracting of such a disease, should be considered as the
date of the accident.
The Commissioner for Workmen’s Compensation is empowered to condone any failure
to give notice or allow the claim if he satisfied that the failure had been for sufficient cause.

Contracting:-
The main object of Section 12 of the Act is to secure compensation to the employees who have
been engaged through the contractor by the principal employer for its ordinary part of the
business, which, in the ordinary course, the principal is supposed to carry out by its own
servants.
Section 12 shows that the principal who employs a contractor shall be liable to
compensation to workmen whom he did immediately employ but who are employed by the
contractor. But before the principal can be made so liable it must be shown that the contractor
was entitled to his work at his orders and he is entitled to dismiss such workman.

Contracting out:-
Section 17 lays down that any contract or agreement whereby a workman relinquishes
any right of compensation from any employer for personal injury arising out of and in the
course of employment shall be null and void in so far as it purports to remove or reduce the
liability of any person to pay compensation under the Act.
It would seem that whenever a contract or an agreement purporting to remove or reduce the
liability of an employer to pay compensation under the Act is produced before the
commissioner, it is the duty to ascertain the true object of the agreement and the circumstances
in which it was made. It is possible that in some cases a workman might be forced to accept
such an agreement by stress of circumstances such as want of funds to take medical treatment
or to provide himself and his family with the necessities of life or as a result of some
inducement by the employers.

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Que) The term “Industry” has undergone a dynamic change by way of judicial decisions
in the recent past in India. Analyze the term with the help of recent judicial decisions.

Que) Discuss the concept of ‘Industry’ under the Industrial Disputes Act, 1947. What are
the considerations for deciding whether an activity is an industry?

Ans:-
The object of the Industrial Disputes Act, 1947 is to make the provision for the
investigation and settlement of industrial disputes. To refer the industrial dispute to the
Industrial Tribunal it is necessary to decide whether or not particular activity comes under the
definition of the ‘Industry’ given under the Act. To make the stand clear in this regard the
judiciary analysed the term ‘Industry’ from time to time.
Definition of industry:-
“Industry” means any business, trade, undertaking, manufacture or calling of employers
and includes any calling, service, employment, handicraft, or industrial occupation or
avocation of workmen.
The first part of definition has to see from the stand point of the employer, while the
second part is from the stand point of workmen. By including the activities of the workmen in
the second part of the definition the labour force employed in any industry is made an integral
part of the industry for the purpose of industrial disputes. An industry exists only when there is
relationship between employers and employees.
It is not difficult to ascertain the meaning of the words business, trade, manufacture, or
calling of employer in order to decide whether any activity is industry or not. But difficulty
arises in defining the term ‘undertaking’. An undertaking to be within the definition must be
similar to trade or business. Number of decisions of the Supreme Court furnishes the guidance
in determining what are the characteristics which would indicate that an undertaking is similar
to trade or business.
In Hospital Mazdoor Sabha case it was stated by Gajendragadkar, J., that an activity
systematically or habitually undertaken for the production or distribution of goods or for the
rendering of material services to the community at large or a part of such community with the
employees is an undertaking. It involves the co-operation of the employer and the employees
and it must arranged in a manner in which trade or business is generally organized.
Triple Test:-
In Bangalore Water Supply v. A. Rajappa a seven Judges Bench of the Supreme Court
laid down the test(triple test) to decide the scope of industry.

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Where there is –
i. systematic activity,
ii. organized by co-operation between employer and employee,
iii. for the production and/or distribution of goods and services calculated to satisfy
human wants and wishes, prima facie, there is an ‘industry’ in that enterprise. This
is known as triple test.
The following points were also emphasized in this case-
1. industry does not include spiritual or religious services
2. absence of profit motive or gainful objective is irrelevant
3. nature of the employer employee relationship in the undertaking
4. even if the organization undertakes some charitable task for the welfare of society, the
organization as business or trade doesn’t cease to exist.
The consequences of the decision in this case are that professions, clubs, educational
institutions, co-operatives, research institutes, charitable projects if they fulfill the triple test
stated above can not be exempted from the scope of industry.

Municipal Corporation:-
In D.N. Banerjee v. P.R. Mukherjee it was held by Supreme Court that a public utility service
such as railways, telephones, and the supply of the power, light or water to the public may be
carried on by private companies or business corporations and if these public utility services are
carried on by local bodies like a Municipality they are industry. But the sovereign functions of
the State delegated to the local authority can not be called as an ‘industry’. E.g. Octroi
Department.

Hospitals:-
Where the hospitals are run by the Government as part of its sovereign functions with
the sole object of rendering free service to the patients are not industry. But all other hospitals,
both public and private, whether charitable or commercial would be industry if they fulfill the
triple test laid down in Bangalore Water Supply v. A. Rajappa.

Educational Institutions:-
The educational institutions including the university are industry in a limited sense.
Now those employees of educational institutions who are covered by the definition of
workman given under the Act will be treated as workman of an industry.

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Club:-
A club when fulfils the triple test are industry.

Solicitor’s firm or Lawyers office:-

A solicitor’s firm employing persons to help in fulfilling the needs of the clients is an
industry.

Agricultural operation:-
The carrying on of agricultural operations by the company for the purpose of making
profits, employing workmen was held to be an industry.

Conclusion:-
A new definition of industry is now included in the Industrial Disputes act, 1947. This
amended definition has not been enforced till now. It nullifies the effect of many judicial
decisions and attempts to clarify the conflicting views arising out of different interpretations of
the word ‘industry’ adopted by the Supreme Court.

Que) Analyse the provisions relating to lay-off, retrenchment and closure under the
Industrial Disputes Act, 1947.

Ans:-
Previously the Industrial Disputes Act was not provided the payment of compensation
in case of ‘lay-of’ or ‘retrenchment’. In absence of statutory provision the authority had been
relied on other considerations. Now through the amendment in the year 1964 the provisions
were included in the Act with this regard.

Lay-off:-
The following are salient features of lay-off
1. An employer, who is willing to employ, fails or refuses or is unable to provide
employment for reasons beyond his control.
2. any such failure or refusal to employ a workman may be on account of :-
a. shortage of coal, power, or raw material, or
b. the accumulation of stock, or
c. the breakdown of machinery, or

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d. natural calamity, or
e. any other connected reasons.
3. A workman who is so deprived of employment must have his name in muster
roll of his industrial establishment.
4. the workman must not have been retrenched.
Lay-off is not a right conferred but an obligation imposed on the employer. The very essence of
a lay-off is that it is a temporary stoppage and that within the reasonable period the employer
should continue the employees in his industry.

Right of workmen laid-off for compensation:-

This act entitles a workman to get compensation from the employer for the period he is
laid-off. But he must fulfill following conditions-
a. he must have his name in the muster roll
b. he must be in continuous service for at least one year.
c. The workman must not be a badli or causal workman.
The amount of compensation payable shall be equal to fifty percent of the total of the basic
wages and dearness allowance. The compensation shall be paid for all days during which he is
so laid-off except for such weekly holidays.

Retrenchment:-
In a retrenchment the business itself is being continued, but that a portion of the staff of
labour force is discharged as surplusage.
Retrenchment means the termination by the employer of the service of a workman. The
termination may be for any reason whatsoever. But the termination should not be a measure of
punishment by way of disciplinary action.
The following are not retrenchment-
a. voluntary retirement of a workman or
b. retirement of workman on reaching the age of superannuation
c. termination of the service of a workman as a result of the non-renewal of the contract of
employment.

Rules of retrenchment:-

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Workman employed in any industry who has been in continuous service for a period of one
year under an employer can be retrenched by employer unless-
1. One months notice in writing given to workman.
2. the notice must indicate the reason for retrenchment.
3. the workman has been paid at the time of retrenchment, compensation which is equal to
15 days average pay for every completed year of continuous service.
4. Notice in the prescribed manner is served on the appropriate Government or such
authority as may be specified by Government.
The well recognize principle of retrenchment in industrial law is ‘first come last go’ and
‘last come first go’.

Closure:-
Closure means the permanent closing down of a place of employment or part thereof.
Provisions:-
In case of closure, an employer who intends to close down an undertaking shall serve at
least 60 days before the date on which the intended closure is to become effective, a notice on
the appropriate government.
The notice shall be served in the prescribed manner and shall state clearly the reasons
for intended closure of undertaking.
Where an undertaking is closed down for any reason, every workman who has been in
continuous service for not less than 1 year is entitled to notice and compensation as if the
workman had been retrenched.
Where the undertaking is closed down on account of unavoidable circumstances
beyond the control of employer, the compensation to be paid to the workman shall not exceed
his average pay for three months.

Que) Define ‘Strike’ and ‘Lock-out’ and state the provisions relating to illegal strike and
lock-out under the Industrial Disputes Act, 1947.
Ans:-
The Industrial Disputes Act, 1947 contains the provisions regarding the strike and lock-
out. The strike and lock-out must be according to the provisions of this Act.
It is said that strike is a weapon in the hands of the labour to enforce their demands
against the employer. While lock-out is a weapon in the hands of the employer.

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Strike:-
Strike means-
1. cessation of work by a body of persons employed in any industry acting in combination or
2. a concerted refusal of any number of persons who are or have been employed in any
industry to continue to work or to accept employment, or
3. a refusal under a common understanding of any number of persons who are or have been
employed in industry to continue to work or to accept employment.
Strike in Public Utility Service:-
No person employed in a public utility service shall go on strike in breach of contract-
1. without giving to employer notice of strike within six weeks before striking
2. within 14 days of giving such notice,( this has the effect of giving prior warning before
the workman actually go on strike)
3. before the expiry of the date of strike specified in any such notice or
4. during the pendency of any conciliation proceeding before conciliation officer and
seven days after conclusion of such proceeding.
Lock-out:-
It means the temporary closing of place of employment or the suspension of work or
the refusal by an employer to continue to employers to persuade by a coercive process the
employees to accept their demands.

Lock-out in public utility:-

No employer shall have right to declare lockout-
1. without giving to employee’s notice of lockout within six week before locking out.
2. within 14 days of giving such notice.
3. before the expiry of the date of lockout specified in any such notice or
4. during the pendency of any conciliation proceeding before conciliation officer and
seven days after conclusion of such proceeding.
Strike and lock out in industrial establishment:-
No workman who is employen in an industrial establishment shall go on strike in
breach of contract and no employer of such workman shall declare lock out-
1. during the pendency of conciliation proceeding before a board of conciliation and
7days after the conclusion of such proceedings.
2. during the pendency of proceeding before a labour court, industrial or national tribunal
and two months after the conclusion n of such proceedings.

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3. during the proceeding of the arbitration proceedings before the arbitrator and two
months after the conclusion of such proceedings.
4. during any period in which a settlement or award is in operation.
Illegal strikes and lock out:-
A strike or lock out shall be illegal if-
1. It is commenced or declared in contravention of the above rules or
2. it is continued in contravention of an order made by the court..
Penalties:-
1. Penalty for illegal strikes-
Any workman who commences, continues or acts in furtherance of a strike which is
illegal shall be punishable with imprisonment for a term which may extend to one
month or fine upto Rs.50/- or both.
2. Penalty for illegal lock out
Any employer who commences continues or acts in furtherance of a lock out which is
illegal shall be punishable with imprisonment up to one month or fine up to Rs. 1000/-
or both.

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Employees' State Insurance scheme ESI ACT

The Act is a piece of social security legislation conceived as a means of extinction of
the evils of the society, namely, want, disease, dirt, ignorance and indigence. The Act confers
benefit on employees against sickness, maternity and other disabilities.
Employees' State Insurance scheme (ESI) is a self-financing social security and health
insurance scheme for Indian workers. For all regular employees earning less than 15,000 per
month salary, the employers and employees contribute a fixed percentage of the salary. This
fund is managed by the ESI Corporation, which oversees the provision of medical and other
benefits to the employees, through its large network of dispensaries and hospitals throughout
India.

ESI was started in India in 1948, initially for factory workers. It now provides social
security to employees from all industries, covering 12.5 million employees working with about
400,000 employers. Total beneficiaries as of 2008-09 are above 50 million. The employees
registered under the scheme are entitled to medical treatment for themselves and their
dependants, unemployment cash benefit in certain contingencies, and maternity benefit in case
of women employees. In case of employment-related disablement or death, there is provision
for a disablement benefit and a family pension, respectively.

Outpatient medical facilities are available in 1398 ESI dispensaries, and through 1678
empanelled private medical practitioners. Inpatient care is available in 145 ESI Hospitals and
42 Hospital annexes; a total of 19387 beds.

Object of the Act -

 It was the first of such measures adopted in India to provide for social insurance to the
labourers.
 Aims at brining about social and economic justice to the poor labour class of the land.
 It covers workers of every factory, industry, mines, plants and communications, etc.

Administration of the Scheme - (S. 3 to 25)

The ESI scheme is being administered by the ESI Corporation which has been set up by
the Central Government under the Act (s. 3). A standing committee has been constituted from
among the members of the ESI Corporation to act as an executive body for the administration
of the Scheme under the general superintendence and control of the ESI Corporation (s. 8 &
18). A Medical Benefit Council has been set up to advice the ESI Corporation on medical
questions (s. 10 & 22). Further the ESI Corporation has been empowered to appoint Regional
Boards, Local Committees and Regional and Local Medical Benefit Council in such areas and
in such manner, and delegate to them such powers and functions as may be provided by the
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regulations (s. 25). Further the ESI Corporation may appoint Inspectors for the purpose of the
Act (s. 45).

Employees’ State Insurance Corporation –

A statutory body known as the ESI Corporation has been created under the Act to
administer and execute the scheme of Employees’ State Insurance.
Main features of the ESI Corporation –
Constitution of Corporation – Sec. 4
Term of office of members of the ESI Corporation –
Power & Functions of ESI Corporation –
1. It may employ the necessary staff for the efficient transaction of its business.
2. It may, in addition to the scheme of benefits specified in the Act, promote measures for
the improvement of the health and welfare of insured persons and for the rehabilitation
and re-employment of insured persons who have been disabled or injured.
3. It can acquire, hold sell or otherwise transfer any movable and immovable property.
4. It can from time to time invest any moneys which are not immediately required.
5. It may with previous sanction of the Central Government raise loans and take measures
for discharging such loans.
6. It may constitute for the benefit of its staff provident or other benefit fund.
7. It may appoint such persons as Inspector as it thinks fit for the purpose of the Act,
within such local limit as it may assign to them.
8. It may on the basis of information available to it, by order, determine the amount of
contribution payable in respect of employees of a factory or establishment in respect of
which no particular, registers or records are submitted, furnished or maintained.

ESI FUND
 The Act provides for the creation of fund called the ESI Fund for,
1. Payment of benefits to the insured persons.
2. Meeting cost of administration.
3. Making provisions for other authorized purposes.
 Fund is mainly derived from contribution from employees and employers. All such
contributions and all other moneys received on behalf of the ESI Corporation shall be
paid into the ESI Fund.
 The ESI Corporation may accept grants, donation and gifts from the Central or any
State Government, Local authority, or any individual or body whether incorporated or
not.
 All moneys accruing or payable to the ESI Fund shall be paid into the Reserve Bank of
India or such other bank as may be approved by the Central Government to the Credit
of an account styled the account of the ESI Fund.

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FUND IS EXPENDED ON
 For medical treatment and attendance to insured persons and their families.
 Administrative expenses
 Holding of property
 Establishment and maintenance of hospitals, dispensaries and other institutions.

CONTRIBUTIONS
Both the employers and employee have to pay their contributions in accordance with the
provisions of the Act. The contribution payable by an employee is known as employee’s
contribution & the contribution payable by an employer is known as employer’s contribution.
The contributions shall be paid at such rates as may be prescribed.
 Employers contribution, a sum equal to 4.75 per cent of the total wage bill of all
employees rounded to the next higher rupee
 Employee’s contribution, a sum equal to 1.75 per cent of his wages rounded to the next
higher rupee.
 In case of default in contribution then liable to pay simple interest at the rate of 12 per
cent per annum or at such higher rate.

BENEFITS
The Act provides for 6 types of benefits to which the insured persons, their dependants or
certain other persons are entitled. These benefits are as follows:
 Sickness
 Maternity
 Disablement
 Dependants’ benefit
 Medical
 Funeral

Returns & Registers

Every principal and immediate employer shall submit to the ESI Corporation or to such
officer of the ESI Corporation as it may direct such returns in such form and containing such
particulars relating to persons employed by him as may be specified in regulation made in this
behalf. He shall also maintain such registers or records in respect of his factory or
establishment as may be required by regulations made in this behalf.

EMPLOYEE’S INSURANCE COURT

Sec. 74 & 75 of the Act lay down that where a dispute arises under the provisions of the Act,
the matter in the dispute shall be decided by the EI Court constituted under Sec. 74 and not by
a civil court. Sec. 75 lays down the matters which shall be decided by this Court.
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Constitution-
 State Government Constitute it by notification in official gazette.
 Any person who is judicial officer or is a legal practitioner of 5 year’s standing.
 State Government may appoint the same court for 2 or more local areas or 2 or more
courts for the same local area.

Jurisdiction-
 To determine whether any person is an employee within the meaning of this Act
 To determine rate of wages.
 To determine rate of contribution.
 Any other matter which is in dispute between principal employer and E.S.I.
Corporation or between a person and the ESI Corporation
 To determine claim for the recovery of contribution from the principal employer

Commencement of Proceedings –
Any proceeding before an EI Court shall be commenced by an application. Every such
application shall be made within three years from the date on which the cause of action arose.
The form of application if any, and particulars required to be furnished with the application
shall be prescribed by the State Government in consultation with the Corporation. The rules
shall be framed by the Government of each state.
Powers- (Sec. 78)
 This court shall be deemed to be a Civil Court within the meaning of Civil Procedure
Code.
 It can summon and enforcing the attendance of witnesses.
 To administer oath and record the evidence.
 To compel the parties to produce documents and material evidence.

Appearance by Legal Practitioner –

The following parties can appear on behalf of any person before the EI Court –
 A legal practitioner
 Any officer of registered Trade Union, authorized in writing by such person
 Any person authorized in writing with the permission of the Court.

Appeal- (Sec. 82)

 An appeal against this court is made to High Court only, when there is substantial
question of law.

Appeal to Supreme Court –

Art. 136 of the Constitution empowers the Supreme Court to grant special leave to
appeal from any judgment, decree, determination, sentence or order on any cause or matter
passed or made by any court or Tribunal in the territory of India.
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HEALTH MEASURES
Chapter III (S. 11 to 20)
1. Cleanliness (S. 11)
a. Factory to be kept clean and free from effluvia (by product or waste) and dirt.
b. Effective means of drainage
2. Disposal of wastes and effluvia (S. 12)
a. Treatment of wastes and effluents and their disposal
3. Ventilation and temperature (S. 13)
a. Adequate ventilation by the circulation of fresh air and
b. Such a temperature as will secure to workers therein reasonable conditions of
comfort and prevent injury to health.
c. Process producing high temperature to be separated.
d. Service of notice by the Chief Inspector on the occupier to adopt measures for
reduction of temperatures.
4. Dust and Fume (S. 14)
a. Effective measures shall be taken in the factory for prevention of inhalation or
accumulation of dust and fumes in workrooms.
b. Exhaust for internal combustion engine.
5. Artificial humidification (S. 15)
a. Water used for artificial humidification to be clean.
6. Overcrowding (S. 16)
a. Overcrowding injurious to health of workers to be avoided.
b. Notice of maximum of workers to be employed in a workroom.
7. Lighting (S. 17)
a. Sufficient and suitable lighting in every part of factory.
b. Glazed windows and skylights to be kept clean
c. Prescription of standards of sufficient and suitable lighting.
8. Drinking water (S. 18)
a. Suitable points for wholesome drinking water
b. Drinking points to be legibly marked and to be away from urinal, latrine, etc.
c. Cooling of drinking water where more than 250 workers employed.
9. Latrines and urinals (S. 19)
a. Separate for male and female workers conveniently situated & adequately lighted &
ventilated.
b. Floors and walls to be glazed and clean.
10. Spittoons (S. 20)
a. Sufficient number of spittoons

SAFETY MEASURES
Chapter IV (S. 21 to 41)
1. Fencing of Machinery (s.21)
a. Dangerous part of every machinery to be securely fenced.
b. Prescription of further precautions by State Government.
2. Work on near machinery in motion (s. 22)
a. By trained adult male worker.
b. Restriction on women and young persons.
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3. Employment of young person’s on dangerous machines (s. 23)

a. Restriction on young persons
b. Machines dangerous for young person have to be specified by the State
Government.
4. Striking gear and devices for cutting off power (s. 24)
a. Suitable striking gear to be provided, maintained and used.
b. Locking device to prevent accidental starting of transmission machinery.
5. Casing of new machinery (s. 26)
a. Casing to prevent danger.
b. Penalty – Imprisonment up to 3 months or with fine up to Rs. 500.
6. Prohibition of employment of women and children near cotton-openers (s. 27)
7. Hoists and lifts (s. 28)
a. Of good mechanical construction, sound material and adequate strength
b. Properly maintain and shall be thoroughly examined by a competent person.
8. Lifting machines, chains, ropes and lifting tackles (s. 29)
a. Cranes and lifting machines, etc. to be of good construction and to be examined
once in every 12 months
b. Cranes and lifting machines not to be loaded beyond safe working load.
c. Crane not to approach within 6 meters of a place where any person is employed or
working.
9. Revolving machinery (s. 30)
a. Notice of maximum safe working speed of grindstone or abrasive wheel etc. to be
kept near machine.
b. Speeds not be exceeded.
10. Pressure plant (s. 31)
a. Safe working pressure not be exceeded.
b. Rule making power of the state government providing for examination and
exemption.
11. Floors, stairs and means of access (s. 32)
12. Pits(hole in surface), sumps(water reservoir which is at a lower level than that of the
tank), openings in floors, etc (s. 33)
a. Pits, sumps, fixed vessels, tanks to be securely covered or fenced.
13. Protection of eyes (s. 35)
14. Precautions against dangerous fumes (s. 36)
a. Prohibition on entry into any chamber, tank, vat, pit, pipe, etc. where any gas, fume
etc. is present.
b. Practicable measures to be taken for removal of gas, fume, etc.
15. Precautions regarding the use of portable electric light. (s. 36-A)
16. Precautions against explosive or inflammable dust, gas, etc. (s. 37)
a. Practicable measures to prevent explosion on ignition of gas, fume etc.
17. Precautions in case of fire (s. 38)
18. Power to require specifications of defective parts or tests of stability (s. 39)
19. Safety of building and machinery (s. 40)
20. Maintenance of building (s. 40-A)
21. Safety officers (s. 40-B) – When there are 1,000 or more workers are working.

Welfare

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Chapter V (sec. 42 to 50)

1. Washing facilities (s. 42)
2. Facilities for storing and drying clothing (s. 43)
3. Facilities for sitting (s. 44)
a. Provision of sitting arrangement for workers obliged to work in a standing position.
b. Provision of seating arrangement for workers doing work which can be done in a
sitting position.
4. First-aid appliances (s. 45)
a. At least one first-aid box with prescribed contents for every 150 workers.
b. First-aid box to have prescribed contents.
c. First-aid box to be in the charge of responsible person.
d. Ambulance room in a factory employing more than 500 workers.
5. Canteens (s. 46)
a. Canteen in factory employing more than 250 workers
6. Shelters, rest rooms and lunch rooms (s. 47)
a. Provision for shelters, rest rooms, lunch rooms in factories employing more than
150 workers.
b. Shelters, rest rooms and lunch rooms to be sufficiently lighted, ventilated and
cooled.
7. Creches (A public nursery, where the young children of poor women are cared for
during the day, while their mothers are at work.)
a. Provision of creches in factories employing more than 30 women workers.
b. Creches to be adequately lighted and ventilated and to be under the charge of

trained women.
8. Welfare officers (s. 49)- when more than 500 workers are there.

PROVISIONS RELATING TO HAZARDOUS PROCESS

SEC. 41-A TO 41-H

MEANING

Any process or activity in relation to an industry specified in the First scheduled where,

a. It cause material impairment to the health of the persons engaged therein.

b. It results in the pollution of general environment.

SITE APPRAISAL COMMITTEES (S. 41-A)

Constitution;

The State Government may for granting permission for factory involving a hazardous
process, appoint site appraisal committee. It shall consist

a. The Chief Inspector of the State who shall be it Chairman

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b. A representative of Central Board for the Prevention and Control of Air Pollution
(water)
c. A representative of Central Board for the Prevention and Control of Air Pollution (Air)
d. A representative of the State Board (Water)
e. A representative of the State Board (Air)
f. A representative of the Department of Environment in the State
g. A representative of the Meteorological Department of the Government of India
h. An expert in the field of occupational health.
i. Not more than 5 other members who may be co-opted by the State Government.

FUNCTION OF COMMITTEE

It shall examine the application and make its recommendation to the State Government
within a period of 90 days.

DUTIES OF OCCUPIER

1. He shall disclose all information regarding danger, including health hazard.

2. Also disclose the measures to overcome such hazards.
3. He should with the approval of Chief inspector draw up an on-site emergency plan and
detailed disaster control measures for his factory.
4. He also with previous approval of Chief inspector lay down measures for the handling,
usage, transportation and storage of hazardous substances inside the factory premises.
5. He should maintain accurate and up to date health records of all the workers.
6. Appoint persons who possess qualifications and experience in handling hazardous
substances.

The information is required to be disclosed to

a. The workers
b. The Chief Inspector
c. The local authority

POWER OF CENTRAL GOVERNMENT

The Central Government may, in the event of the occurrence of an extraordinary

situation involving a factory engaged in a hazardous process, appoint an Inquiry Committee to
inquire into the standards of health and safety observed in the factory.

The committee shall consist of a Chairman and 2 other members.

PENALTY
Whoever fails to comply with or contravenes any of the provisions, he will be
punishable 7 years imprisonment and with fine which may extend to Rs. 2,00,000.
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If failure continues beyond 1 year then the offender is punishable with imprisonment
for a term which may extend to 10 years.

Working Hours of Adults

The Rules as to the regulation of hours of work of adult workers in a factory and
holidays are as follows

1. Weekly hours (S. 51) - No adult worker shall be required or allowed to work in a
factory for more than 48 hours in any week.
2. Daily hours (S. 54) – Subject to above rule, no adult worker shall be required or
allowed to work in a factory for more than 9 hours in any day. But in order to facilitate
the change of shift, this limit may be exceeded.
3. Intervals for rest (S. 55) – No worker shall work for more than 5 hours before he has an
interval for rest of at least half an hour. The State Government or Chief Inspector may,
by written order and for the reasons specified therein, exempt any factory from the
intervals but in that case, the total number of hours worked without an interval shall not
exceed 6.
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Night Shifts (S. 57) –

Where a worker in a factory works on a shift which extends beyond midnight then his
weekly or compensatory holiday for a whole day means a period of 24 consecutive hours
beginning when his shift ends.

Extra wages for overtime (S. 59) –

Where a worker works in a factory for more than 9 hours in any day or more than 48
hours in any week, he shall in respect of overtime work be entitled to wages at the rate of twice
his ‘ordinary rate of wages’. It means the basic wages plus such allowances, including the cash
equivalent of the advantage accruing though the concessional sale to workers of food grains
and other articles, as the worker is for the time being entitled to.

Notice of periods of work for adult workers (S. 61) –

1. Notice to be displayed at some conspicuous place.

2. Classification of workers.
3. Groups working on a system of shifts.

Register of adult workers (S. 62 & 63) –

The manager of every factory shall maintain a register of adult workers showing –

a. The name of each adult worker in the factory.

b. The nature of his work.
c. The group, if any, in which he is included.
d. Such other particulars as may be prescribed.

The register shall be available to the Inspector at all times during working hours, or
when any work is being carried on in the factory. No adult worker shall be required or allowed
to work in any factory unless his name and other particulars have been entered in the register of
adult workers.

Holidays (S. 52)

Every adult worker in a factory shall be allowed a holiday during a week. As such no
adult worker shall be required to allow working in a factory on the first day of the week which
is Sunday. But the manager can substitute for Sunday any of the days. He shall, however,
deliver a notice at the office of the Inspector of his intention to require the worker to work on
that day.

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The Minimum Wages Act, 1948

A minimum wage is the lowest hourly, daily or monthly remuneration that employers
may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their
labour. Although minimum wage laws are in effect in a great many jurisdictions, there are
differences of opinion about the benefits and drawbacks of a minimum wage. Supporters of the
minimum wage say that it increases the standard of living of workers and reduces
poverty. Opponents say that if it is high enough to be effective, it increases unemployment,
particularly among workers with very low productivity due to inexperience or handicap,
thereby harming lesser skilled workers to the benefit of better skilled workers.
OBJECT:
1. The Act was passed for the welfare of labourers.
2. The Act has been enacted to secure the welfare of the workers in a competitive market
by providing for a minimum limit of wages in certain employments.
3. The Act provides for fixation by the Central Government of minimum wages for
employments detailed in the Schedule of the Act.

APPLICABILITY:
It extends to the whole of India and applies to scheduled employments in respect of
which minimum rates of wages have been fixed under this act.

Salient features of the Act:

1. This Act provides for the fixation of
a. Minimum time rate of wages
b. A minimum piece rate
c. A guaranteed time rate
d. An overtime rate
2. The minimum rate of wages under the Act may consist of
a. A basic rate of wages and a cost of living allowance
b. Basic rate of wages with or without the cost of living allowances
3. The Act requires that wages shall be paid in cash, although it empowers the appropriate
Government to authorize the payment of minimum wages, either wholly or partly in
kind in particular cases.
4. The Act empowers the appropriate Government to fix the number of hours of work per
day.
5. The establishments covered by this Act are required to maintain registers and records in
the prescribed manner.
6. The Act also provides for appointment of Inspectors and authorities to hear and decide
claims arising out of payment of wages at less than the minimum rates of wages.

SCHEDULED EMPLOYMENTS:
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An employment specified in the schedule, or any process or branch of work forming part of
such employment (Section-2g)

FIXING OF MINIMUM RATES OF WAGES:

i. The appropriate government shall fix the minimum rates wages payable to employees
employed in a scheduled employment.
ii. Review at such intervals not exceeding five years, the minimum rates of wages so fixed and
revise the minimum rates if necessary. The minimum rates of wages may be fixed as a
minimum time rate or a minimum piece rate or as a guaranteed time rate (Section-3).

MINIMUM RATES OF WAGES:

The appropriate Government may fix –
a. A minimum rate of wages for time work
b. A minimum rate of wages for piece work
c. Overtime rate

Different minimum rates –

In fixing or revising minimum rates of wages, different minimum rates of wages may
be fixed for –
a. Different scheduled employments
b. Different classes of work in the same scheduled employment
c. Adults, adolescents, children
Further in fixing or revising minimum rates of wages may be fixed by any one or more
of the following wage- periods, namely:
a. By the hour
b. By the day
c. By the month
d. By such other larger wage-period as may be prescribed.

Procedure for fixing & revising minimum wages –

The Act provides separate modes of procedure for fixing and revising minimum wages
and the primary object of both the procedure is to enable the Government to reach a balanced
conclusion with regard to fixation of a minimum wage.
In fixing minimum rate of wages in respect of any scheduled employment for the first
time or in revising minimum rates of wages so fixed, the appropriate Government shall follow
either of the following 2 methods:
a. Appointment of committee.
A committee appointed under the Act is only an advisory body and the Government is
not bound to accept its recommendation en every case.
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b. Publication of proposals in the Official Gazette.

The fixation or revision shall come into force on the expiry of 3 months from the date of the
issue of notification, unless the notification otherwise provides.

Inspectors (S. 19) –

The appropriate Government may, by notification in the official gazette, appoint
inspectors for the purposes of the Act, and define the local limits within which they shall
exercise their functions. The power and functions of the inspectors are almost similar to those
of the inspectors appointed under the Payment of Wages Act, 1936. The inspectors have to see
that the provisions of the Minimum Wages Act are complied with.

Powers –
1. Enter at all reasonable hours, with such assistants as he thinks fir, any premises or
places for the purpose of examining any register, records of wages.
2. Examine any person whom he finds in any such premises or place.
3. Seize or take copies of such register, record or wages or notices as may consider
relevant.
4. Exercise such other powers as may be prescribed.

Claims (S. 20) –

The appropriate Government may, by notification in the official gazette, appoint an
authority to hear and decide for any specified area all claims –
a. Arising out of payment of less than the minimum rates of wages
b. In respect of the payment of remuneration for the days of the rest or for work done on
days of rest
c. In respect of wages at the overtime rate, to employees employed or paid in that area.

Authority under the Act –

1. Any commissioner for Workmen’s Compensation
2. Any officer of the Central Government exercising functions as a Labour Commissioner
for any region
3. Any officer of the State Government not below the rank of a Labour Commissioner
4. Any other officer with experience as a Judge of a Civil Court.

Powers of Authority –
The authority shall have all the powers of a civil court under the CPC, 1908, for the
purpose of –
1. Taking evidence
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2. Enforcing the attendance of witnesses

3. Compelling the production of documents

Procedure for deciding claims –

When any application for claim is entertained, the Authority shall hear the applicant
and the employer or give them an opportunity of being heard.

Who may apply?

Where an employee has any claim, any of the following persons may apply to the
Authority for hearing and deciding the case:
1. The employee himself,
2. Any legal practitioner,
3. Any official of a registered Trade Union authorized in writing to act on his behalf,
4. Any inspector,
5. Any person acting with the permission of the Authority.

When Application is presented?

Every application shall be presented within 6 months from the date on which the
minimum wages or other amount became payable. It may be admitted after 6 months when the
applicant satisfies the Authority that he had sufficient cause for not making the application
within such period.

Finality of decision –
Every direction of the authority under this Act shall be final. This merely means that the
decision of the Authority cannot be questioned under any provision of the Act. It does not
exclude the jurisdiction of the Civil Court when the challenge is as the applicability of the Act
to a certain class of workers.

PENTALITY -
Any employer who contravenes any of the provisions of this Act other than those
relating to Section 12 and 13 of any rule or any order made there under shall be punishable
with fine, which may extend to Rs.500. Any employer who contravenes the provision relating
to the payment of minimum rates of wages fixed (Section- 12) hours of work stipulated for
constituting a normal working day as per section 13 shall be punishable with imprisonment for
a term which may extend to six months or with fine which may extend to Rs. 500/- or with
both.

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Discuss the powers and procedure of Commissioner.

The general principle is that compensation should ordinarily be given to workmen who
sustained personal injuries by accidents arising out of and in the course of employment.
Compensation will also be given in cases of disease.
Under the Act if any question as to liability to pay compensation or amount of
compensation arises, the Commissioner has been empowered to settle the question. No civil
court shall have jurisdiction to settle or decide any question which is required to be settled or
decided by the Commissioner.
Appointment of Commissioner:- Sec. 20
The State Government may by notification in the official gazette appoint one or more
person to be a Commissioner for Workmen’s Compensation Act for any are.
Venue of proceedings:- Sec. 21
The proceeding shall be conduced before the Commissioner in whose area the accident took
place which resulted in the injury.
Transfer of proceeding:-
If a Commissioner satisfied that any proceedings pending before him can be more
conveniently dealt with by any other Commissioner, whether in the same state or not, may
transfer the proceeding to such other commissioner.
Power and procedure of Commissioner:- Sec. 23
The Commissioner shall have all the powers of a Civil Court for the purpose of taking
evidence on oath and enforcing attendance of witnesses and compelling the production of
documents. Thus for all these purposes the commissioner shall be deemed to be a civil court.
Form of application:- Sec. 22
Any workman who is injured in the accident and claiming the compensation for that shall make
an application to Commissioner in prescribed manner along with necessary fees.
Such application shall contain a concise statement of claim, service of notice to the employer,
names and address of the parties.
Appearance of the parties:- Sec. 24
Any appearance or application for compensation can be made
a. By a workman himself, or
b. by a legal practitioner on behalf of the workman, or
c. by an official of an insurance company, or
d. a registered trade union
e. or by any other officer of the State Government authorized in writing.

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f. Or by an inspector appointed for this purpose.

Power to submit cases before High Court:-
A Commissioner may submit any question of law for decision of High Court. The High Court
may decide such question referred to them. Thereafter the Commissioner shall decide the
question in conformity with decision given by High Court.
Registration of agreement:- Sec. 28
Whenever any lump-sum amount appears payable as compensation has been settled by
agreement, it must be sent by employer to the Commissioner. The Commissioner may register
such agreement when he is satisfies himself about genuine and adequacy of the terms of the
agreement.
Effect of non registration:- Sec. 29
Where the agreement between a workman and employer is not registered, the employer shall
be liable to pay the amount of compensation as per the provisions of this Act.
Appeals –

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The Payment of Wages Act, 1936

In a country where even living wages are not paid to workers, the need to protect the
wages earned by them can hardly be over-emphasized. Before the Payment of Wages Act was
passed, evils of withholding wages, delays in paying wages and making unreasonable
deductions out of wages were quite prevalent.
Object –
1. To regulate the payment of wages to certain classes of persons employed in industry.
2. It meant for the benefit of industrial employees not getting very high salaries and the
provisions of the Act were enacted to safeguard their interest.
3. To provide provisions against irregularities in payment of wages and unauthorized
deductions there from by the employers.

Definitions –
Employed person – [S. 2 (ia)]
It includes the legal representative or a deceased employed person.
Employer – [S. 2 (ib)]
It includes the legal representative of deceased employer. When there is a manager who
is entrusted with the affairs of a company, the directors of the company cannot be said to be
employers.
Wages – [S. 2 (vi)]
It means all remuneration (whether by way of salary, allowances or otherwise)
expressed in terms of money or capable of being so expressed which would, if the terms of
employment, express or implied, were fulfilled, be payable to a person employed in respect of
his employment or of work done in such employment.
Simply stated, wages means all remuneration due to any worker or employee if the
terms of contract of employment are fulfilled.
The definition of expression wages is made sufficiently wide by including within the
expression:
(a) any remuneration payable under any award or settlement between the parties or order of a
court;

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

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

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

(e) any sum to which the person employed is entitled under any scheme framed under any law
for the time being in force, but does not include -

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form
part of the remuneration payable under the terms of employment or which is not payable under
any award or settlement between the parties or order of a court;

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

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

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

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

(6) any gratuity payable on the termination of employment in cases other than those specified
in sub-clause (d).

"Industrial or other establishment" means any – Sec. 2 (ii)

(a) tramway service or motor transport service engaged in carrying passengers or goods or both
by road for hire or reward;

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

(b) dock wharf or jetty;

(c) inland vessel mechanically propelled;

(d) mine quarry or oil-field;

(e) plantation;

(f) workshop or other establishment in which articles are produced adapted or manufactured
with a view to their use transport or sale;

(g) establishment in which any work relating to the construction development or maintenance
of buildings roads bridges or canals or relating to operations connected with navigation
irrigation or to the supply of water or relating to the generation transmission and distribution of
electricity or any other form of power is being carried on;

(h) any other establishment or class of establishments which the Central Government or a State
Government may having regard to the nature thereof the need for protection of persons
employed therein and other relevant circumstances specify by notification in the Official
Gazette.

Deductions from Wages (S. 7 to 13) –

Sec. 7 provides that the wages of an employed person shall be paid to him without
deductions of any king except those authorized by or under the Payment of Wages Act, 1936

Kinds of deductions –
1) Deductions for fines –
2) No fine shall be imposed on any employed person save in respect of such acts or
omissions on his part as the employer, with the previous approval of the appropriate
Government or of the prescribed authority.

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3) No fine shall be imposed on an employed person until he has been given an opportunity
of showing cause against the fine and has completed the age of 15 years.
4) The total amount of fine which may be imposed in any one wage period on any
employed person shall not exceed 3 per cent of the wages payable to him in respect of
that wage period.
5) Deductions for absence from duty –
i. Deductions may be made on account of the absence of an employed
person from duty from the place or places where, by the terms of his
employment, he is required to work.
6) Deductions for damage or loss –
i. A deduction for damage to or loss of goods expressly entrusted to the
employed person for custody or for loss of money for which he is
required to account shall not exceed the amount of the damage or loss
caused to the employer by the neglect or default of the employed person.
7) Deductions for services –
a. A deduction for house accommodation and such amenities and services supplied
by the employer as have been authorized by the appropriate Government shall
not be made from the wages of an employed person, unless such services have
been accepted by him as a term of employment or otherwise.
8) Deductions for recovery of advance –
9) Deductions for recovery of loans –
10) Deductions for payments to co-operative societies and insurance schemes-
11) Other deductions –
a. Income-tax
b. Order of court
c. Prime Minister’s National Relief Fund

Inspectors (S. 14) –

An Inspector of Factories appointed under the Factories Act, 1948 shall be an Inspector
for the purpose of the Payment of Wages Act in respect of all factories within the local limits
assigned to him.
The Appropriate Government may also, by notification in the official gazette, appoint
such other persons as it thinks fit to be Inspectors for the purpose of the Act. It may define the

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local limits within which and the class of factories and industrial or other establishments in
respect of which they shall exercise their functions.

Powers –

(a) Make such examination and inquiry as he thinks fit in order to ascertain whether the
provisions of this Act or rules made there under are being observed;

(b) With such assistance if any as he thinks fit enter inspect and search any premises of any
railway factory or industrial or other establishment at any reasonable time for the purpose of
carrying out the objects of this Act;

(c) Supervise the payment of wages to persons employed upon any railway or in any factory or
industrial or other establishment;

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

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

(f) Exercise such other powers as may be prescribed.

Provisions relating to ‘fines’ –

 Fines shall be imposed for approved list of acts and omissions.

 A notice specifying such list shall be exhibited in the prescribed manner on the
premises in which the employment is carried on or at the prescribed places in case a
person is employed in railways.

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 No fine shall be imposed on any employed person until he has been given an
opportunity of showing cause against the fine, or other-wise, than in accordance with
such procedure as may be prescribed for the imposition of fines.

 The total amount of fine which may be imposed in any one wage period on any
employed person shall not exceed an amount equal to three per cent of the wages
payable to him in respect of that wage-period.

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

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

 All fines and all realizations thereof shall be recorded in a register to be kept by the
person responsible for the payment of wages.

Que) What are the circumstances in which an employer is and is not liable to pay
compensation under the Workmen’s Compensation Act, 1923?

Que) Discuss the nature and scope of the employer’s liability to pay compensation to a
workman under the Workmen’s Compensation Act, 1923.

Ans:-
There was growing use of machinery in industries from the end of the 19 th century
which exposed the worker to the risk of accidents and occupational diseases. To protect the
poor workmen form hardships arising from accidents was the reason behind passing of this
Act. The object of the Act was to make provision for the payment of compensation by certain
class of employers to their workmen for injury by accident.
Employer’s liability for compensation in case of injury in an accident:-
The liability of an employer to pay compensation is limited and is subject to the
provisions of the Act. The liability of the employer to pay compensation is dependent upon the
following four conditions-
1. Personal injury must have been caused to a workman:-

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Injury ordinarily refers to a physiological injury. Personal injury does not mean only
physical or bodily injury but includes even a nervous shock, a mental injury or strain. It may be
external, or it can be internal also.

2. Such injury must have been caused by an accident:-

An injury must have been caused in an accident. It must not be self inflicted injury. There
must be relation between injury caused and the accident. Accident means any unexpected or
undersigned mishap, untoward even or consequences brought about by some undersigned act
which could not be provided.

3. The accident must have arisen out of and in the course of employment:-
The expression ‘arising out of’ suggests the cause of accident and the expression ‘in the
course of’ points out to the place and circumstances under which the accident takes place and
the time when it occurred. A causal connection between the injury by accident and employment
is necessary. If the accident had occurred on account of risk which is an incident of the
employment, the employer will be liable to pay compensation to the injured workman.

4. The injury must have resulted either in death of the workman or in his total or partial
disablement for a period exceeding three days.

Employer’s liability in case of occupational diseases:-

The Act also provides the payment of compensation in case of an injury resulting from
occupational diseases. The disease contracted must be an occupational disease peculiar to the
employment specified in Schedule III. The contracting of any disease specified in schedule III
shall be deemed to be an injury by accident arising out of and in the course of employment
unless the contrary is proved.

Employer not liable to pay compensation:-

The employer shall not be liable to pay compensation in the following cases-
a. If the injury did not result in total or partial disablement of the workman for a period
exceeding three days;
b. In respect of any injury not resulting in death or permanent total disablement the employer
can plead-
1. that the workman was at the time accident under the influence of drinks or drugs

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2. that the workman willfully disobeyed an order expressly given or a rule expressly
framed for the purpose of securing safety of workmen:-
In order to avoid the liability to pay compensation the employer has to show not only
disobedience must be willful and the order must be express. Mere disobedience is not
sufficient because it may be due to forgetfulness.
3. when the safety guards or safety devices are provided by the employer for the purpose
of securing the safety of workman, if the workman willfully disregarded or removed the
same.
In all these circumstances the employer is not liable to pay the compensation. So to reduce the
liability to pay the compensation the employer must show the existence of above
circumstances.

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Q. What are the various authorities under the Industrial Disputes Act, 1947 which help to
settle industrial dispute? Discuss briefly the functions of each.

Q. What are the different methods of the settlement of industrial disputes under the
Industrial Disputes Act, 1947?
Ans:-
The economic growth of a country depends upon the industrial development. Hence the
development of country largely depends upon the growth of the industrial development. The
prosperity of any industry very much depends upon its growing production. The production
is only possible when the industry functions smoothly without any interruptions. The
interruption in running the industry is mainly because of disputes between the labour and the
management.
The main object of the Industrial Disputes Act is investigation and settlement of
industrial disputes. With that object in view various authorities have been created by the Act.
The various modes of settlement of disputes provided by the Act can be classified under
three heads-
1. Conciliation
2. adjudication; and
3. Arbitration.
Following authorities have to use the conciliation as sole method of settlement of
disputes-
1. Works Committee:-
The main purpose of creating the Works Committee is to promote measures for
securing and preserving good relation between employer and his workmen. It is a body
which aims to promote good-will and measures of common interest. The works committee
shall be established only in such industrial establishment in which one hundred or more
workmen are employed. The Works Committee must consist the equal number of
representatives of the employer and employee. The total number of members in Works
Committee shall not exceed twenty. The decision of the Works committee can be challenged
if it is not fairly constituted.

2. Conciliation Officer:-
The appropriate Government may by notification appoint conciliation officers for a
specified area or for specified industries in a specified area or for one or more specified area.

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The main duties of these officers are to mediate and to promote the settlement of industrial
disputes. By adopting the mediation method the conciliation officer can create the
environment in which employers and employees by seating together can reach peacefully to
the conclusion or settlement in a dispute.
4. Boards of Conciliation:-
The provision for Board of conciliation is made under the Act to bring the parties to a
dispute to sit together and to know the differences and to find out ways and means to
settle them. The appropriate Government by notification may constitute a Board of
Conciliation. A Board shall consist of a Chairman and two or four other members as the
Appropriate Government thinks fit. The Chairman shall be an independent person and
the other members shall be persons appointed in equal numbers to represent the parties to
the dispute.
The following authorities have to conduct the adjudication method to settle the dispute-
1. Courts of Inquiry:-
The purpose of the constitution of Court of Inquiry is to inquire into any matter which
appears to be connected with industrial dispute. If a matter is referred to a Court by the
Appropriate Government, it shall inquire and make a report within a period of six month
from the date of commencement of inquiry.
The court of inquiry may consist one independent person or any number of independent
person as the Government thinks fit.
2. Labour Court:-
The appropriate Government may appoint one or more Labour Courts. The functions of
the Labour Court as provided under the Act are:-
i. adjudication of industrial disputes relating to any matter specified in the Second
Schedule such as
a. legality of orders passed by employers under standing order,
b. the application and interpretation of Standing orders
c. discharge or dismissal of workmen, reinstatement , grant relief of, wrongful
dismissal.
d. Withdrawal of customary concession or privilege.
e. Illegality of a strike or lock-out, etc.
The Labour court shall consist of one person who fulfils the qualifications provided by
the Act.
The following authorities have to follow arbitration proceeding:-
1. Tribunal:-

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The Industrial Tribunal for the first time created by the Industrial Disputes Act, 1947.
The Industrial Tribunal under the Act has many similar features of Courts but they do not
have the same status of the court. These tribunal need not follow the strict technicalities
of law in adjudication of industrial disputes. Only experienced persons of high integrity
can be appointed as presiding officer of the Tribunal. Any person fulfils the
qualifications prescribed under the Act can be appointed as presiding officer of the
Industrial Tribunal.
The tribunal could make award for bringing harmonious relations between employers
and employees. The tribunal can make the order on the basis of available data before it or
on the basis of evidence adduced before it. An appeal can be made against the decision of
the tribunal.
2. National Tribunals:-
The Central Government may constitute National Industrial Tribunals for the
adjudication of industrial dispute, which in the opinion of Central Government –
a. involves question of national importance or
b. are of such nature that the industrial establishments situated in more than one
states are likely to be interested or affected by such disputes.
A National Tribunal shall consist of one person who is a Judge of a High Court.
3. Arbitration-
Section 10-A provides that where any industrial dispute exists or is apprehended and
employer and the workmen agree to refer the dispute to arbitration, they may refer the
dispute to arbitration. Such reference by agreement may be made at any time before the
dispute has been referred under Sec. 10 to a Labour Court, Tribunal or National
Tribunal.
Conclusion:-
The main object of the appointment of the various authorities under the Act is to promote the
settlement of industrial dispute and thereby to bring the peace in the industrial sector and to
maintain the harmonious relationship between the employers and workers.

Q. What is an award under the Industrial Disputes Act, 1947? Explain the provisions
relating to commencement and period of operation of an award.
Ans:

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To resolve the industrial dispute in peaceful way, the Act constitutes various non-adjudicatory
and adjudicatory authorities and assigned various powers and functions to fulfil the object of
the Act.
Meaning of Award:
‘Award’ means an interim or final determination of any industrial dispute or of any question
relating to it. The determination must be by any Labour Court, Industrial Tribunal, or National
Tribunal. It includes an arbitration award made under Section 10-A.
Award includes final as well as an interim determination. The tribunal can grant only such
interim awards which they are competent to grant at the time of final award. In this regard the
following principles are noteworthy:
a. An interim award is not the final determination of some of the points involved in an
industrial dispute.

b. Interim relief is granted in aid of the final relief to be granted.

Limitation on power to make award:

The Court and tribunal are to function within the limit imposed by the statute. The powers are
exercised not in arbitrary or in absolute fashion.
Form of award:
The award of the Labour court, Industrial Tribunal and National Tribunal should be signed by
Presiding officer. The award of any Labour Court, Industrial Tribunal or National Tribunal
shall be in writing.
Commencement of award:
The Act provides that an award shall become enforceable on the expiry of thirty days from the
date of its publication. The award shall not become enforceable on the expiry of thirty days-
a. Where award as a whole or any part of the award on public grounds affect national
economy or social justice

b. On the above stated ground the Central Government can stop enforcement of an award
given by National Tribunal.

c. For the purpose of stopping the enforcement of any award a notification in the official
Gazette is necessary.

d. Where any award as rejected or modified is laid before the Legislature of a State or
Parliament such award shall become enforceable on the expiry of fifteen days from the
date it is so laid.

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e. The award shall come into operation with effect from such date as may be specified in
the award. Where no date is specified in the award, it shall come into operate and be
enforceable thirty days after its publication.

Enforceability of award:
The difference between these two expressions is that there is a creation of new rights in favour
of respective parties but these newly created rights are can be enforced only after the date of its
enforcement. The award of a Tribunal is given effect to within thirty days of its publication that
is by the time it becomes enforceable.
The power to fix the date form which the award would become effective is discretionary and
the award may not necessarily be made effective from the date of reference. The tribunal has
discretion to give retrospective effect to an award.
Publication of award:
Every arbitration award and every award of a Labour Court, Industrial Tribunal and National
Tribunal shall also be published within thirty days from the date of receipt by the Appropriate
Government. The award published in the prescribed manner shall be final and shall not be
called in question by any court in any manner. The award cannot be null and void if it was
published more than 30 days after it was received
Where settlement between the parties has been arrived at after the award has been sent by the
Tribunal to the Government but before its publication in such case publication of award will be
withhold in avoid possible conflict.
Person on whom awards are binding:
An award of a Labour Court, Tribunal or National Tribunal shall be binding on-
1. All parties to the industrial

2. All other parties summoned to appear in the proceedings as parties to the dispute

3. Where a party referred to is an employer, his heirs, successors or assigns in respect of

the establishment to which the dispute relates,

4. All persons who are employed in the establishment or part of the establishment to
which the dispute relates on the date of the dispute and all persons who subsequently
employed in that establishment.

Conclusion:- Award of tribunal or arbitration is similar to decree of any civil court and will be
enforce in the same as it were decree of civil court.

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What is conciliation? Examine the powers and duties of conciliation officers under the
Industrial Dispute Act, 1947.
Ans:
One of the important objects of the Industrial Disputes Act, 1947 is to settle the industrial
dispute in peaceful way and to protect the interest of unorganised labours in industrial sector.
With this object the Act constitute various authorities to settle the industrial dispute with
definite powers and functions.
Conciliation is one of the modes to settle the dispute peacefully out of the court. In
conciliation process the conciliator or panel of conciliator are assigned with peculiar task to
create environment and to facilitate the disputant parties in achieving peaceful settlement
regarding their dispute.
Conciliation officer:
The appropriate government may by notification in the Official Gazette, appoint conciliation
officers. These officers are charged with the duty of mediating in and promoting the settlement
of industrial disputes. The appropriate government may appoint one or more conciliation
officers for specified area or for specified industry.
Boards of Conciliation:-
The appropriate government may appoint Board of Conciliation under the Act to bring the two
parties to a dispute to sit together and to settle their differences. A Board shall consist of a
Chairman and two or four other members, as the Appropriate Government thinks fit.
Procedure and powers of Conciliation officers:
Followings are the powers of conciliation officers under the Act-
1. To achieve the settlement between the disputant parties in industrial dispute,
conciliation officers can adopt suitable procedure.
2. For the purpose of inquiry into any industrial dispute, enter the premises occupied by
any establishment to which the dispute relates.
3. The conciliation officer has powers of civil court while dealing with the industrial
dispute.
4. Conciliation officers shall be deemed to be public servants within the meaning of
Section 21 of the Indian Penal Code, etc.

Procedure to be followed by conciliation officer:-

The Conciliation officer may enforce the attendance of any person for the purpose of
examination of such person or call for and inspect any document related with the industrial
dispute.

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For the purpose of settlement of industrial dispute conciliation officer shall have the same
power as Civil Court except summoning and examine witnesses on oath.
Notice to enter premises:-
Before entering in to any premises, the conciliation officer needs to give notice to the
occupant of the premises.
In State of Bihar v. Kripa Shankar Jaiswal1 the Supreme Court held, that the notice is
given simply to convey the establishment that it is the conciliation officer and not a
stranger, who is coming and the absence of a notice does not affect the jurisdiction of a
conciliation officer.
Duties of Conciliation officers:-
The duties of conciliation officers under the Act are of two kinds, namely, discretionary and
mandatory. His duties are-
a. Where any industrial dispute exists or is apprehended in any industrial establishment
the conciliation officer may hold conciliation proceedings in the prescribed manner.
b. Where the dispute relates to a public utility service and a notice under section 22 has
been given, the conciliation officer shall hold conciliation proceeding in the prescribed
manner.
The conciliation officer may also do all such things as he thinks fit for the purpose of
inducing the parties to come to a fair and amicable settlement of the dispute. He shall
try to find out the points of difference between the parties, ascertain the grounds on
which respective claims are based and explore the possibilities to settle the differences.
Submission of report by conciliation officer:-
In case settlement is arrived, the conciliation officer shall close the investigation and
send-
1. A full report setting forth the steps taken by him for resolution of dispute
2. A full statement of reason on account of which in his opinion, a settlement could not be
arrived.
The report is sent for consideration to the government for its consideration.
Conclusion:
The role of conciliation officer is very important as important task related to industrial peace is
assigned to him. Conciliation require special skill and ability to handle the industrial dispute
and bring the settlement parties. Since this mode is very much informal than other remedies it
brings result effectively.

1
AIR 1961 SC 304
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Working hours of adults:

Before passing of this Act, employers exploited his workers by getting more work from the
worker irrespective of hours of work. They didn’t consider any need of rest and compelled the
workers to work for more hours. That affects the working capacity and health of the worker.
The Factories Act now provides working hours of adults in every factory. These provisions are
binding on every factory. Any act contravention to these provisions are punishable under this
Act.

Following are the provisions regarding working hours of adults-

1. Weekly hours:
No adult worker shall be required or allowed to work in a factory for more than forty eight
hours in any week.
2. Weekly holiday
No adult worker shall be required or allowed to work in a factory on the first day of the
week, unless-
a. he has or will have a holiday for a whole day on one of the tree days immediately before or
after the said day; and
b. Whenever workers are required or are permitted to work on a weekly holiday, the specific
permission of the Chief inspector of factories in respect of each and every worker who is
required to work on such a day should be obtained.
The manager and occupier will be liable to the penalties if they done something in breach
of above provisions.
3. Compensatory holidays:-
Where worker is deprived of any of the weekly holidays, he shall be allowed, within the month
in which the holidays were due to him or within the two months immediately following that
month, compensatory holidays of equal number to the holidays so lost.
4. Daily hours:
No adult worker shall be required or allowed to work in a factory for more than nine hours in
any day. However this period of work can be exceeded with the prior approval of factory
inspector to facilitate the change of shifts.
5. Intervals for rest:
The periods of work of adult workers in a factory each day shall be so fixed that no period shall
exceed five hours and that no worker shall work for more than five hours before he has had an
interval be exceeded in order to facilitate the change of shifts.
6. Spread over:

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The period of work including interval of an adult worker in a factory shall not spread over
more than ten and a half hours in any day.
7. Night shifts:
Where worker in a factory works on a shift which extends beyond mid-night, a holiday for
whole day for him shall mean a period of twenty four consecutive hours beginning when his
shift ends.
8. Prohibition of overlapping shift:
Work shall not be carried on in any factory by means of a system of shifts so arranged that
more than on relay of workers is engaged in work for the same kind at the same time.
9. Extra wages for overtime:
Where worker works in factory for more than nine hours in any day or for more than forty
eight hours in a week, he shall, in respect of overtime work, be entitled to wages at the rate of
twice his ordinary rate of wages.

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