Part-1

Labour Laws

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Labour Laws Part-1

IMPORTANT

You will find a list of Practice Questions, at the end of each chapter. There are two
objectives of these questions:

1. To assess your understanding of the topic.

2. To understand the various types of questions which can be asked from this topic.

Please note that, we also provide a bigger question bank on our Online Test Platform.
Each question on the online test platform includes the answer as well as detailed
explanation. ALL previous years’ questions are covered. ln addition, there are new
questions as well.

After covering the syllabus from booklets, it is EQUALLY IMPORTANT to go

through the questions on the Online Test Platform. This will give you confidence of
absolute coverage and ability to face any possible question on the exam day.

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Labour Laws Part-1

TABLE OF CONTENTS

1. Constitutional Provisions for Labour Welfare ...................................................................................... 5

2. Regulatory Framework in India ............................................................................................................ 7
3. Employee’s Compensation Act, 1923 ................................................................................................ 10
4. Industrial Disputes Act, 1947 ............................................................................................................. 20
5. Payment of Wages Act, 1936 ............................................................................................................. 38
6. Minimum Wages Act, 1948................................................................................................................ 43
7. Payment of Bonus Act, 1965 .............................................................................................................. 48
8. Equal Remuneration Act, 1976 .......................................................................................................... 53
9. Payment of Gratuity Act, 1972 ........................................................................................................... 55
10. Employees’ Provident Funds Act, 1952 ............................................................................................. 61
11. Industrial Employment (Standing Orders) Act, 1946 ......................................................................... 70
12. Trade Union Act, 1926 ....................................................................................................................... 81
13. Code of Wages, 2019.......................................................................................................................... 88

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1. Constitutional Provisions for Labour Welfare
The Constitution maintains a list of fundamental rights and directive principle of the state policy, which refers
to the upliftment and promotion of labour welfare.

Fundamental Rights that directly concern labour welfare:

 Article 14 states everyone should be equal before the law.
 Article 15 says the state should not discriminate against citizens.
 Article 16 extends a right of "equality of opportunity" for employment under the state.
 Article 19(1)(c) gives everyone a specific right "to form associations or unions".
 Article 21 states that no person shall be deprived of his life or personal liberty except according to
procedure established by law.
 Article 23 prohibits all trafficking and forced labour.
 Article 24 prohibits child labour under 14 years old in a factory, mine or "any other hazardous
employment".

Directive Principles of State Policy that directly concern labour welfare, are:
 Article 38(1) says that in general the state should "strive to promote the welfare of the people" with a
"social order in which justice, social, economic and political, shall inform all the institutions of
national life. In Article 38(2) it goes on to say the state should "minimise the inequalities in income"
and based on all other statuses.
 Article 39 specifically requires the State to direct its policy towards securing the following principles:
(a) Equal right of men and women to adequate means of livelihood.
(b) Distribution of ownership and control of the material resources of the community to the
common good,
(c) To ensure that the economic system should not result in concentration of wealth and
means of production to the common detriment.
(d) Equal pay for equal work for both men and women.
(e) To protect health and strength of workers and tender age of children and to ensure that
they are not forced by economic necessity to enter avocations unsuited to their age or
strength.
(f) That children are given opportunities and facilities to develop in a healthy manner and in
conditions of freedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment.
Pursuant to Article 39 (d), Parliament has enacted the Equal Remuneration Act, 1976.
 Article 41 directs the State to ensure the people within the limit of its economic capacity and
development: (a) employment, (b) education, and (c) public assistance in cases of unemployment, old
age, sickness and disablement and in other cases of undeserved want.
 Article 42 requires the state to "make provision for securing just and human conditions of work and
for maternity relief".
 Article 43 says workers should have the right to a living wage and "conditions of work ensuring a
decent standard of life". Article 43A, inserted by the Forty-second Amendment of the Constitution of
India in 1976, creates a constitutional right to codetermination by requiring the state to legislate to
"secure the participation of workers in the management of undertakings".
Article 43 refers to a "living wage" and not "minimum wage". The concept of living wage includes in
addition to the bare necessities of life, such as food, shelter and clothing, provisions for education of
children and insurance etc.
 Article 45 required the State to make provision within 10 years for free and compulsory education for
all children until they complete the age of 14 years.
 Article 47 requires the State to raise the level of nutrition and the standard of living and to improve
public health.
Labour Laws Part-1

Matters in respect of which laws are to be made have been distributed in three lists (Seventh Schedule
(Article 246):
(1) Union List
(2) Concurrent List
(3) State List

The Union list includes participation in international conferences, associations and other bodies and
implementing of decisions made there at; regulation of labour and safety in mines and oil-fields; industrial
disputes concerning union employees.

The Concurrent List includes; trade unions; industrial and labour disputes; social security and social
insurance; employment and unemployment; welfare of labour including conditions of work, provident fund,
employers' liability , workmen's compensation, invalidity and old age pensions, and maternity benefits;
vocational and technical training of labour in the factories.

The State List includes relief of the disabled and unemployable.

PRACTICE QUESTIONS
List - II
1.) Which Article of the Indian Constitution (i) Article 43
guarantees ‘just and humane conditions of work (ii) Article 41
and maternity relief’? (iii) Article 38(1)
(A) Article 41 (iv) Article 42
(B) Article 42 Codes:
(C) Article 43 (a) (b) (c) (d)
(D) Article 45 (A) (i) (ii) (iii)(iv)
(B) (iv) (iii) (ii) (i)
2.) The Directive Principles of State Policy, as (C) (iii) (ii) (i) (iv)
contained in Indian Constitution, contains various (D) (iii) (iv) (i) (ii)
Articles which has influenced the enactment of
social and labour legislations. Match the subject 3.) Which part of the Indian Constitution divides
matters of the Directive Principles with the Article jurisdiction for enactment of Labour Legislations?
Numbers as given in List - I and List - II (A) Distribution of Legislative Power
respectively: (B) Directive Principles of State Policy
List - I (C) Fundamental Rights
(a) Promotion of Welfare of people by securing (D) None of the above
and protecting effectively a social order in which
justice shall inform all institutions of national life. 4.) Which of the following comes under the 'State
(b) Securing just and humane conditions of work List' as provided under the Seventh Schedule of
and for maternity relief. the Constitution of India?
(c) Securing living wage ensuring decent standard (A) Relief of the disabled and unemployable.
of life. (B) Vocational and technical training of labour.
(d) Within the limits of economic capacity, (C) Social security and social insurance.
securing right to work, education and public (D) Welfare of labour including conditions of
assistance in case of unemployment, old age work.
sickness and disablement

ANSWERS
1. B 2. D 3. A 4. A

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2. Regulatory Framework in India
The labour legislations can be categorized as follows:
1) Labour laws enacted by the Central Government, where the Central Government has the sole
responsibility for enforcement.
2) Labour laws enacted by Central Government and enforced both by Central and State Governments.
3) Labour laws enacted by Central Government and enforced by the State Governments.
4) Labour laws enacted and enforced by the various State Governments, which apply to respective
States.

There are 4 types of Labor Legislations in India:

1) Protective Labor Legislations: The legislations whose primary purpose is to protect minimum labor
standards and improve working conditions are protective labor legislations. Legislations laying down the
minimum labor standards in the areas of work, safety, employment of children and women and also the
manner of wage payment come under this category. The Indian labor laws under this category are:
o The Factories Act, 1948
o The Mines Act, 1952
o The Plantation Labor Act, 1951
o The Motor Transport Workers Act, 1961
o The Shops and Establishment Act passed by various states
o The Payment of Wages Act, 1936
o The Minimum Wages Act, 1948
o The Child Labor (Prohibition and regulation) Act, 1986
o The Contract Labor (Regulation and Abolition) Act, 1970

2) Regulative Legislations: Laws related to Working Hours, Conditions of Service and Employment. The
legislations whose primary purpose is to regulate the relations between employers and employees and to
provide for methods and manners for settling industrial disputes are Regulative Legislations. These laws also
regulate the relationships between workers and trade unions, the rights and obligations of the organizations of
employers and workers, as well as their mutual relationships. The laws under this category are as follows:
o The Trade Unions Act, 1926
o The Industrial Disputes Act, 1947
o The Industrial Employment (Standing Orders) Act, 1946

3) Social Security Legislations: The Legislations which intend to provide social security benefits to the
workmen during certain contingencies of life are Social Security Legislations. Though this, legislations may
cover other classes of citizens also, their primary goal has been to protect the workers. The laws under this
category are as follows:
o The Workmen's Compensation Act, 1923
o The Employees State Insurance Act, 1948
o The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948
o The Employees Provident Funds and Miscellaneous Provisions Act, 1952
o The Maternity Benefit Act, 1961
o The Payment of Gratuity Act, 1972

4) Welfare Legislations: The legislations which aim at promoting the general welfare of the workers and
improve their living conditions are Welfare legislations. Such laws carry the term “Welfare” in their titles and
provide for the funds, which is spent on improving the general welfare of workers including housing, medical,
educational and recreational facilities. The Laws under this category are as follows:
o Mica Mines Labor Welfare Fund Act, 1946
o Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines labor Welfare Fund Act, 1976
o Beedi Workers Welfare Fund Act, 1976
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LABOUR CODES
The Ministry of Labour & Employment is working on to rationalize the provisions of the 43 labour laws into 4
Labour Codes:

(1) Labour Code on Wages: It rationalizes, amalgamates and simplifies the relevant provisions of the
following 4 labour laws:
(i) The Minimum Wages Act, 1948
(ii) The Payment of Wages Act, 1936
(iii) The Payment of Bonus Act, 1965
(iv) The Equal Remuneration Act, 1976

(2) Labour Code on Industrial Relations: This will rationalize, amalgamate and simplify the relevant
provisions of the following 3 labour laws:
(i) The Trade Unions Act, 1926
(ii) The Industrial Employment (Standing Orders) Act, 1946
(iii) The Industrial Disputes Act, 1947

(3) Labour Code on Social Security & Welfare: This will rationalize, amalgamate and simplify the relevant
provisions of the following labour laws:
(i) The Employees' Compensation Act, 1923
(ii) The Employees' State Insurance Act, 1948
(iii) The Employees' Provident Fund and Miscellaneous Provisions Act, 1952
(iv) The Maternity Benefit Act, 1961
(v) The Payment of Gratuity Act, 1972
(vi) The Cine Workers Welfare Fund Act, 1981
(vii) The Building and Other Construction Workers Cess Act, 1996
(viii) The Unorganised Workers' Social Security Act, 2008

(4) Labour Code on Safety and Working Condition will rationalize, amalgamate and simplify the
provisions of 13 labour laws:
(i) The Factories Act, 1948;
(ii) The Mines Act, 1952;
(iii) The Dock Workers (Safety, Health and Welfare) Act, 1986;
(iv) The Building and Other Construction Workers Act, 1996;
(v) The Plantations Labour Act, 1951
(vi) The Contract Labour (Regulation and Abolition) Act, 1970;
(vii) The Inter-State Migrant workmen (Regulation of Employment and Conditions of Service) Act, 1979;
(viii) The Working Journalist and other News Paper Employees Act, 1955;
(ix)The Working Journalist (Fixation of rates of wages) Act, 1958;
(x) The Motor Transport Workers Act, 1961;
(xi) The Sales Promotion Employees (Condition of Service) Act, 1976;
(xii) The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
(xiii) The Cine Workers and Cinema Theatre Workers Act, 1981.

LATEST UPDATE ON CODES AS ON DECEMBER 2019

(1) Code on Wages Bill: Passed by both houses of Parliament in August 2019.
(2) Code on Industrial Relations: Introduced in Parliament on 28 Nov 2019.
(3) Code on Social Security & Welfare: Approved by Cabinet in Dec 2019.
(4) Code on Occupational Safety Health & Working Conditions: Introduced in Lok Sabha in July 2019
and referred to the Parliamentary Standing Committee on Labour.

DRAFT SMALL FACTORY BILL

The draft Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014 was floated by
the labour ministry in October 2014, based on the recommendation of the Second National Commission on
Labour. The proposed Bill seeks to bring all small factories under a common regulation and exempt these
units from 14 central labour laws. It envisages rules for wages, overtime hours, social security and

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appointment of factory inspectors in units employing fewer than 40. As reported in year 2018, the labour
ministry has decided NOT to move forward with the draft small factories legislation.

COMPLIANCE TO MAINTAIN REGISTERS UNDER VARIOUS LABOUR LAWS RULES 2017

In 2017, The Ministry of Labour and Employment has replaced 56 Registers/Forms under “9 Central Labour
Laws” and Rules with “5 common Registers/Forms”. This was done to improve “EASE OF DOING
BUSINESS”. The List of 9 Central Labour Laws is:
(i) Building &Other Construction Workers Act, 1996
(ii) Contract Labour (Regulation and Abolition) Act, 1970
(iii) Equal Remuneration Act, 1976
(iv) Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
(v) Mines Act, 1952
(vi) Minimum Wages Act, 1948
(vii) Payment of Wages Act, 1936
(viii) Sales Promotion Employees (Conditions of Service) Act, 1976
(ix) Working Journalists and Other Newspaper Employees and Miscellaneous Provisions Act, 1955

PRACTICE QUESTIONS

1.) Which one of the following is not a principle of Codes:

labour legislation? abcd
(A) Principle of Protection (A) i iii iv ii
(B) Principle of Regulation (B) ii i iii iv
(C) Principle of Social Security and Welfare (C) iv ii i iii
(D) Principle of Reasonable Standard of Living (D) iii iv ii i

2.) Which one of the following is based on the
principle of welfare?
(A) Mica Mines Labour Welfare Funds Act
(B) Iron Ore Mines Labour Welfare Funds Act
(C) Dock Workers (Safety, Health, Welfare) Act
(D) All of above
3.) Match the following:
List – I
a. The Plantation Labour Act, 1951
b. The Trade Unions Act, 1926
c. The Payment of Gratuity Act, 1972
d. Beedi Workers Welfare Fund Act, 1976
List – II
i. Welfare Legislation
ii. Social Security Legislation
iii. Protective legislation
iv. Regulative legislation
4.) The Ministry of Labour & Employment is
working on to rationalize the provisions of the 43
labour laws into 4 Labour Codes. Which of the
following is not one of 4 codes?
(A) Code on Family Welfare
(B) Code on Industrial Relations
(C) Code on Social Security & Welfare
(D) Code on Safety and Working Condition
5.) The Code on Wages Bill, 2019 was passed by
the Parliament in August 2019. Which of the
following is not one of the 4 Acts being subsumed
in the Code?
(A) The Payment of Wages Act, 1936
(B) The Minimum Wages Act 1948
(C) The Payment of Bonus Act, 1965
(D) None of above

ANSWERS
1. D 2. D 3. D 4. A 5. D

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3. Employee’s Compensation Act, 1923
Chapter I: PRELIMINARY
The Workmen’s Compensation Act, 1923 (now renamed Employee’s Compensation Act, 1923) provides for
payment of compensation to employees and their dependents in case of injury and accident (including certain
occupational disease) arising out of and in the course of employment and resulting in disablement or death.
The amount of compensation to be paid depends on the nature of the injury and the average monthly wages
and age of employee.

Sec. 2- DEFINITIONS
Commissioner means a Commissioner for Employee’s Compensation Act.

Dependent means any of the following relatives of a deceased workman, namely:

(i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter or a widowed
mother;
(ii) if wholly dependent on the earnings of the employee at the time of his death a son or a daughter who has
attained the age of 18 years and is infirm.
(iii) if wholly or in part dependent on the earnings of the employee at the time of his death-
(a) a widower
(b) a parent other than a widowed mother
(c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or illegitimate
or adopted if married and a minor or if widowed and minor
(d) a minor brother or an unmarried sister or a widowed sister if a minor
(e) a widowed daughter-in-law
(f) a minor child of a pre-deceased son
(g) a minor child of a pre-deceased daughter where no parent of the child is alive or
(h) a paternal grandparent if no parent of the employee is alive
For sub-clause (ii) and items (f) and (g) of sub-clause (iii), son, daughter or child include an adopted son,
daughter or child respectively.

Employee means a person, who is:

(i) a railway servant as defined under of the Railways Act, 1989, not permanently employed in any
administrative district or sub-divisional office of a railway and not employed in any such capacity as is
specified in Schedule II; or
(ii) (a) a master, seaman or other members of the crew of a ship,
(ii) (b) a captain or other member of the crew of an aircraft,
(ii) (c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a
motor vehicle,
(ii) (d) a person recruited for work abroad by a company, and who is employed outside India in any such
capacity as is specified in Schedule II and the ship, aircraft or motor vehicle, or company, as the case may be,
is registered in India; or
(iii) employed in any such capacity as is specified in Schedule II

But DOES NOT include any person working in the capacity of a member of the Armed Forces of the Union.

Any reference to any employee shall include a reference to his dependants, where the employee is dead.

The State Government or the Central Government may add any class of persons employed in any occupation
which it is satisfied is a hazardous occupation, to Schedule II, with notice of 3 months.

Minor means a person who has not attained the age of 18 years.

Partial disablement means:

(a) where the disablement is temporary: if such disablement reduces the earning capacity of an
employee in any employment, in which he was engaged at the time of the accident.
Labour Laws Part-1

(b) where the disablement is permanent: if such disablement reduces the earning capacity in every
employment which he was capable of.
Provided that every injury specified in Part II of Schedule-I shall be deemed to result in Permanent Partial
Disablement.

Total disablement means, whether of a temporary or permanent nature as incapacitates an employee for all
work which he was capable of performing at the time of the accident resulting in such disablement:
Provided that Permanent total disablement shall be deemed to result from every injury specified in
Part I of Schedule I or from any combination of injuries specified in Part II thereof where the
aggregate percentage of the loss of earning capacity as specified in the said Part II against those
injuries amount to 100% per cent or more;

Note: In case of temporary partial disablement, the disablement results in reduction of earning capacity in
respect of “only that employment in which he was engaged” at the time of accident, which means the
workman’s earning capacity in relation to other employments is not affected.
But in case of permanent partial disablement, the disablement results in reduction in his earning capacity is
not only the employment in which he was engaged at the time of accident but in all other employments as
well.

Seaman means any person forming part of the crew of any ship but does not include the master of ship.

Wages includes any privilege or benefit which is capable of being estimated in money other than a
 traveling allowance
 contribution paid by the employer of an employee towards any pension or provident fund
 Any special expenses entailed on him by the nature of his employment.

Workman means any person (except employment of casual nature) employed for the purposes of the
employer' s trade or business and INCLUDES:
 a railway servant as per Indian Railways Act, 1890
but EXCLUDES
 Permanently employed in any administrative, district or sub- divisional office of a railway
 Employed in any such capacity as is specified in Schedule II
 Working in Armed Forces
The State Government or the Centre Government may add any class of persons employed in any occupation
which it is satisfied is a hazardous occupation, to Schedule II, with notice of 3 months.

Chapter II: EMPLOYEE’S COMPENSATION

Sec. 3- EMPLOYER’S LIABILITY

The employer shall not be so liable to pay compensation if -
(a) If injury does not result in the total or partial disablement for a period exceeding 3 days;
(b) If injury caused by an accident which is directly attributable to:
 Employee having been at the time thereof under the influence of drink or drugs
 Willful disobedience of the employee to an order expressly given or to a rule expressly
framed for the purpose of securing the safety of employees.
 Willful removal or disregard by the employee of any safety guard or safety device.

OCCUPATIONAL DISEASES (SCHEDULE III)

If any injury or disease is caused specified in Part A, B and C of Schedule III, it shall be deemed as
occupational disease or injury “arising out of and in the course of employment” enabling the employee to
claim compensation. Thus, the Schedule III is divided in Part A, B & C as follows:
(a) Part A: If an employee is working in any employment specified in Part A of Schedule III contracts
any disease, it shall be presumed to be “occupational disease”. For this no length of service is
prescribed. (which means no specific period of service prescribed).

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As per Amendment in 2017, the penalty amount has been increased from a maximum of Rs. 5000 to a definite
penalty of Rs. 50,000 which may be further extended to Rs. 1 lakh.

Unless the complaint is made within 6 months of the date from it came to the knowledge of the
“Commissioner”, no Civil Court shall take cognizance of any offence.

Chapter III: COMMISSIONERS

APPOINTMENT OF COMMISSIONERS
Sec. 20- The State Government may, may appoint any person, as Commissioner, who is
 a member of a State Judicial Service for a period of not less than 5 years
 an advocate or a pleader for not less than 5 years
 Gazetted officer for not less than 5 years having educational qualifications and experience in
personnel management, human resource development and industrial relations

Sec. 22- In case of accident, a claim for compensation will be made to the Commissioner in prescribed format.

Sec. 23- The Commissioner shall have all the powers of a Civil Court under the Code of Civil Procedure.
Civil Courts shall NOT have any jurisdiction to settle matters, which is dealt or decided by the Commissioner.

Sec. 25A- The Commissioner shall dispose of the claims relating to compensation within 3 months.

REGISTRATION OF AGREEMENTS
Sec. 28- Where any compensation has been settled by agreement (lump sum, half-monthly, or any other)
between employer and employee, the Commissioner, shall record the memorandum in a register BUT only
after 7 days’ notice to all parties concerned.
The Commissioner may at any time rectify the register, if agreement having been obtained by fraud or undue
influence or other improper means.
Sec. 29- If employer fails to send the agreement to the Commissioner (for registration), the employer shall be
liable to pay the full amount of compensation.

Sec. 30- APPEALS

An appeal can be made to the High Court, against decision of Commissioner, namely:
(a) an order awarding as compensation a lump sum or by way of redemption of a half-monthly payment
(b) an order awarding interest or penalty.
(c) an order refusing to allow redemption of a half-monthly payment.
(d) an order providing for the distribution of compensation among the dependants of a deceased
(e) an order allowing or disallowing any claim for the amount of an indemnity.
(f) an order refusing to register a memorandum of agreement.

No appeal can be made unless a substantial question of law is involved in the appeal, and or the amount in
dispute in the appeal is not less than Rs 300.

As per Amendment in 2017, appeals can be made against orders related to compensation, distribution of
compensation, award of penalty or interest, only if the amount in dispute is at least Rs 10,000. The same has
been revised from the earlier minimum amount of Rs 300.

The appeal can be made within 60 days from the day of order of the Commissioner.

Chapter IV: RULES

Sec. 32- POWER OF THE STATE GOVERNMENT TO MAKE RULES

The State Government may make rules:
 Intervals and conditions for REVIEW, when not accompanied by a medical certificate;
 Intervals and conditions for medical examination

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 Procedure to be followed by Commissioners in the disposal of cases

 Transfer of matters and cases from one Commissioner to another
 How a Commissioner may be invest the benefit of dependants of a deceased employee
 Representation in proceedings of parties who are minors or are unable to make an appearance.
 Memoranda of agreements shall be presented and registered;
 Withholding of half-monthly payments pending decision on applications for review
 Scales of costs which may be allowed in proceedings under this Act;
 Amount of the fees payable in respect of any proceedings
 Maintenance of registers and records of proceedings
 Maintenance of notice-books
 Statements to be submitted by employers
 The way Diseases specified as occupational diseases may be diagnosed;
 The manner in which diseases may be certified
Every rule made under this section shall be laid, before the State Legislature.

LIST OF SCHEDULES
Schedule I- Part I: List of injuries deemed to result in Permanent Total Disablement
Schedule I- Part II: List of injuries deemed to result in Permanent Partial disablement
Schedule II: List of persons who, are included in the definition of Workmen (Employee)
Schedule III: List of occupational diseases
Schedule IV: Relevant factors for working out compensation amount in case of permanent
disablement and death. (It depends on the age on the last birthday of the employee immediately
preceding the date on which the compensation fell due)

The list of Occupational Diseases is given in Schedule III. The important ones are:

Disease Description Vulnerable industry

Primary Epitheliomatous
Cancer of the skin
Occupational cataract
Occupational Asthma
Primary neoplasm of the
epithelial lining
Pneumoconiosis and
Silico-tuberculosis
Bagassois
Byssinosis
Extrinsic Allergic
Alveolitis
(Hypersensitivity
Pneumonitis)
High-altitude pulmonary
edema (HAPE)
Hard Metal Lung Disease
abnormal growth of the epithelium
caused
by tar, pitch, bitumen, mineral oil,
anthracene
clouding of the lens in the eye caused
due to infra-red radiations
Respiratory disease characterized by
episodic narrowing of the respiratory
tract.
Type of cancer occur in urinary bladder
or the kidney or the ureter caused by
chemical exposure
a disease of the lungs due to inhalation of
sclerogenic mineral dust (silicosis,
anthraoo-silicosis, asbestosis)
Interstitial lung disease (ILD) caused by
exposure to molasses (bagasse) or
sugarcane dust
Lung disease caused by inhaling hemp,
flax and cotton particles
Inflammation of the air sacs of the lungs
caused by the inhalation of organic dusts
Fluid accumulation in the lungs at high
altitudes
caused by exposure to particles of hard
All work involving exposure to
the risk. concerned
All work involving exposure to
the risk. concerned.
Chemical Industry (Isocyanate
manufacturing), Latex Gloves
Petroleum, Paint Manufacturing,
Agrochemicals
Mining, textile milling, Ship-
building, Ship-repairing or Ship-
breaking, Sandblasting
Sugarcane Industry
Cotton industry, Yarn and fabric
Manufacturing
All work involving exposure to
the risk concerned.
All work involving exposure to
the risk concerned.
Hard metals used in tools for

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(Bronchopulmonary metal alloys, whose major components cutting and sharpening metals,
diseases) are tungsten carbide and cobalt or cobalt drilling wells, polishing diamond
and diamond and dental prostheses

AMENDMENTS IN THE ACT IN 2010

Workmen's compensation Act was amended in 2010. Given below are the synopsis of the changes:
a) The workmen's compensation (amendment) act, 2009 is now renamed as the employee's
compensation (amendment) act, 2009 and wherever "workman" or "workmen" is mentioned in the
entire Act the same needs to be read as "Employee"
b) The compensation payable on death from the injury, is (i) minimum of Rs.80000 is increased to
Rs.120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.
c) The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of
Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied by the
relevant factor.
d) Definition of workmen replaced by "Definition of Employee"- also now includes CLERICAL
employees.

AMENDMENTS IN THE ACT IN 2017

The Employees’ Compensation (Amendment) Act was amended in 2017. The details are as follows:
a) It is the employer’s responsibility and duty to inform an employee of his rights. Failure to do so will
make the employer liable to penalty. The amendment penalises an employer if he fails to inform his
employee of his right to compensation.
b) The penalty amount has been increased from a maximum of Rs. 5000 to a definite penalty of Rs.
50,000 which may be further extended to Rs. 1 lakh.
c) The appeals can be made to High Court, against orders of Commissioner, only if the amount in
dispute is at least Rs 10,000. Earlier this amount was Rs 300.
d) In a further amendment, the Act has scrapped the rule as per which the employer could temporarily
withhold any payments towards the employee in case the former had appealed against a
commissioner’s order.

PRACTICE QUESTIONS

1.) In which amending year the definition of (B) b and d only

“workman” was replaced by definition of (C) a, b and d only
“employee” under the Employee Compensation (D) All of the above
Act, 1923?
(A) 2009 3.) Which of the following is true about “total
(B) 2010 disablement” as per the Employee Compensation
(C) 2014 Act, 1923?
(D) 2017 Statement I: Total disablement means, where the
disablement is of a temporary nature or of a
2.) As per the Employee Compensation Act, 1923, permanent nature such disablement as reduces his
which of the following is/are covered under the earning capacity in every employment, which he
definition of a “dependent”? was capable of undertaking at that time.
a) a widower Statement II: Total disablement means, whether
b) a parent other than a widowed mother of a temporary or permanent nature as
c) a minor illegitimate son an unmarried incapacitates a employee for all work which he
illegitimate daughter or a daughter legitimate or was capable of performing at the time of the
illegitimate or adopted if married and a minor or if accident resulting in such disablement.
widowed and minor Select the correct code:
d) a minor brother or an unmarried sister or a (A) Statement I is true, Statement II is false
widowed sister if a minor (B) Statement I is false, Statement II is true
Select the correct code: (C) Both Statements I & II are true
(A) a and b only (D) Both Statements I & II are false

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(A) an amount equal to 60% of the monthly wages

4.) Match the following
List I: Schedules under the Employee
Compensation Act, 1923
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
List II: Subject
i) List of occupational diseases
ii) Relevant factors for working out compensation
amount
iii) List of injuries deemed to result in Permanent
Total Disablement and Permanent Partial
Disablement
iv) List of persons who are included in the
definition of Workmen (Employee)
Select the correct code:
abcd
(A) i ii iii iv
(B) ii iv iii i
(C) iii iv i ii
(D) iv ii iii i
5.) The employer shall not be so liable to pay
compensation if injury does not result in the total
or partial disablement for a period exceeding ___
(A) 5 days
(B) 3 days
(C) 10 days
(D) 8 days
6.) As per the provisions of Employee
Compensation Act, 1923, contracting of any
disease because of employment shall be deemed to
be an injury by accident if:
(A) Employed in any employment specified in
Part A of Schedule III
(B) Employed for a continuous period of not less
than 6 months (with One Employer) in any
employment specified in Part B of Schedule III
(C) Employed in the service of one or more
employers in any employment specified in Part C
of Schedule III.
(D) All of the above
7.) According to the provisions of the Employee
Compensation Act, 1923, the amount of
compensation to be paid to dependents of a
employee is if he dies as a result of his injuries is
multiplied by the relevant factor; or an amount of
Rs 140000, whichever is more
(B) an amount equal to 55% of the monthly wages
multiplied by the relevant factor; or an amount of
Rs 125000, whichever is more
(C) an amount equal to 50% of the monthly wages
multiplied by the relevant factor; or an amount of
Rs 120000, whichever is more
(D) an amount equal to 80% of the monthly wages
multiplied by the relevant factor; or an amount of
Rs 150000, whichever is more
8.) Calculate the amount of compensation to be
paid to the dependent of an employee, in case of
death, under the Employees Compensation Act,
1923, if the monthly salary of the employee is Rs
25,000 and the relevant factor is 99.37
(A) Rs 1,20,000
(B) Rs 27,33,066
(C) Rs 3,97,480
(D) Rs 12,42,125
9.) As per the provisions of Employee
Compensation Act, 1923, in case of an injury
leading to temporary disablement, whether total or
partial a half monthly payment of the sum
equivalent to ______ shall be paid to the
employee.
(A) 50% of monthly wages
(B) 30% of monthly wages
(C) 25% of monthly wages
(D) 20% of monthly wages
10.) As per the provisions of Employee
Compensation Act, 1923, the half-monthly
payment in case of temporary disablement, shall
be paid on
(A) 16th day from the date of disablement
(B) 14th day from the date of disablement
(C) 12th day from the date of disablement
(D) 10th day from the date of disablement
11.) According to the Employee Compensation
Act, 1923, Where there is default in paying the
compensation, the Commissioner shall direct that
the employer to pay, in addition to the amount of
the arrears, pay simple interest at the rate of
(A) 20% per annum
(B) 18% per annum
(C) 16% per annum
(D) 12% per annum

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Labour Laws Part-1
12.) Which of the following statement is true
regarding the calculation of monthly wage in case
of unavailability of necessary information, under
the Employee Compensation Act, 1923?
(A) The monthly wages shall be 40 times the total
wages earned divided by the number of days of
employment.
(B) The monthly wages shall be 30 times the total
wages earned divided by the number of days of
employment.
(C) The monthly wages shall be 20 times the total
wages earned divided by the number of days of
employment.
(D) The monthly wages shall be 10 times the total
wages earned divided by the number of days of
employment.
13.) In which of the following cases, the
compensation is NOT paid directly to the
employee/dependent?
a) Death of employee
b) Compensation to a woman
c) To a person under a legal disability
d) To a person suffering from permanent total
disablement
Select the correct code:
(A) a and b only
(B) a and d only
(C) a, b and c only
(D) All of the above
14.) After receiving the notice from the
Commissioner, regarding the death of an
employee, the employer who is of the opinion that
he is liable to deposit compensation, shall do so
within how many days?
(A) 15 days of the service of notice
(B) 20 days of the service of notice
(C) 30 days of the service of notice
(D) 35 days of the service of notice
15.) Statement I: The employer has to pay
compensation within 7 days in case of fatal
accidents only.
ANSWERS
1. B 2. D 3. B 4. C 5. B 6. D
14. C 15. B 16. D 17. B 18. C
19
Statement II: The employer has to pay
compensation within 7 days in case of fatal
accidents and serious bodily injuries.
Select the correct code:
(A) Statement I is correct
(B) Statement II is correct
(C) Both the statements are correct
(D) Both the statements are incorrect
16.) In case of Master and Seaman and Crew of
Aircraft, workers availing which of the following
schemes shall not be liable to receive
compensation under the Employee Compensation
Act, 1923?
a) War Pensions and Detention Allowances
(Mercantile Marine, etc) Scheme, 1939
b) War Pensions and Detention Allowances
(Indian Seamen, etc) Scheme, 1941
c) Pensions (Navy, Army, Air Force and
Mercantile Marine) Act, 1939
d) War Pensions and Detention Allowances
(Indian Seamen) Scheme, 1942
Select the correct code:
(A) a and c only
(B) a, c and d only
(C) b, c and d only
(D) All of the above
17.) In case of death of an employee working
abroad with a company, which is registered in
India, the dependents can claim for compensation
within how many days from receiving the news of
death of the employee?
(A) 180 days
(B) 365 days
(C) 120 days
(D) 100 days
18.) As per the provisions of the Employee
Compensation Act, 1923, if the employer fails to
maintain a notice-book of accidents, the penalty
will be
(A) Rs. 25,000
(B) Rs. 30,000
(C) Rs. 50,000
(D) Rs. 80,000
7. C 8. C 9. C 10. A 11. D 12. B 13. C
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4. Industrial Disputes Act, 1947
Chapter I: PRELIMINARY
The Industrial Disputes Act, 1947 came into operation on the first day of April, 1947. This Act replaced the
Trade Disputes Act of 1929. The Trade Disputes Act imposed certain restraints on the right of strike and
lockout in Public Utility Services. But no provision was existing for the settlement of Industrial Disputes,
either by reference to a Board of Conciliation or to a Court of Inquiry. In order to remove this deficiency, the
Industrial Disputes Act, 1947 was enacted.

Sec. 2- DEFINITIONS
Appropriate Government will be the Central Government in relation to any industrial disputes concerning
any of:
(a) industry under the Central Government, or under a railway company or
(b) a Dock Labour Board or
(c) the Industrial Finance Corporation of India Limited or
(d) the Employees’ State Insurance Corporation or
(e) the Board of Trustees constituted under the Coal Mines Provident Fund and Miscellaneous Provisions Act,
1948 or
(f) the Central Board of Trustees and the State Boards of Trustees constituted under the Employees’ Provident
Fund and Miscellaneous Provisions Act, 1952 or
(g) the Life Insurance Corporation of India or
(h) the Oil and Natural Gas Corporation Limited or
(i) Deposit Insurance and Credit Guarantee Corporation or
(j) the Central Warehousing Corporation or
(k) the Unit Trust of India or
(l) the Food Corporation of India
(m) the Airports Authority of India or
(n) a Regional Rural Bank, or
(o) the Export Credit and Guarantee Corporation Limited or
(p) the Industrial Reconstruction Bank of India or
(q) the Export Credit and Guarantee Corporation Limited or
(r) the National Housing Bank or
(s) an air transport service, or a banking or an insurance company, a mine, an oilfield, a Cantonment Board, or
a major port, any company in which not less than 51% of the paid-up share capital is held by the Central
Government, or the Central public sector undertaking, subsidiary companies set up by the principal
undertaking and autonomous bodies owned or controlled by the Central Government,

The State Government shall be the appropriate Government in relation to any other industrial dispute,
including the State public sector undertaking, subsidiary companies set up by the principal undertaking and
autonomous bodies owned or controlled by the State Government.

In case of a dispute between a contractor and the contract labour employed through the appropriate
Government shall be the Central Government or the State Government, as the case may be, which has control
over such industrial establishment.

Average Pay means the average of the wages payable to a workmen, calculated as:
(i) In the case of monthly paid - Average of 3 complete calendar months.
(ii) In the case of weekly paid - Average 4 complete weeks.
(iii) In the case of daily paid workman - Average of 12 full working days.

Award means an interim or final determination of any industrial dispute by any Labour Court, Industrial
Tribunal or National Tribunal.

Closure means the permanent closing down of a place of employment or part thereof.
Labour Laws Part-1

Court means a "Court of Inquiry" constituted under this Act.

Controlled Industry means any industry the control of which, by the Union Government has been declared to
the expedient in the public interest. That is, an industry which is controlled by the Central Government. But it
must also be declared by the Central Act to be controlled by the Union.

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 definition of “industry” was amended in 1982, but it is yet to be notified. The amended definition is:
Industry means any systematic activity carried between an employer and his workmen for the production,
supply or distribution of goods or services with a view to satisfy human wants or wishes. It does NOT include:
 any agricultural operation
 hospitals or dispensaries
 educational, scientific, research or training institutions
 institutions engaged in any charitable, social or philanthropic service
 khadi or village industries
 Government relataed sovereign functions including defence research, atomic energy and space
 any domestic service
 any activity by an individual/individuals, if the number of persons employed is less than 10.

Industrial Disputes may be defined as:

(1) a dispute or difference between (a) employers and employers, or (b) employers and workmen, (c)
workmen and workmen;
(2) the dispute or difference should be connected with (a) employment or non-employment, or (b)
terms of employment, or (c) conditions of labour of any person;
(3) the dispute may be in relation to any workman or workmen or any other person in whom they are
interested as a body.
Sec. 2A- Where any employer discharges, dismisses, retrenches, or terminates the services of an individual
workman, any dispute on this shall be deemed to be an "industrial dispute" notwithstanding that no other
workman nor any union of workmen is a party to the dispute.
Any workman may make an application direct to the Labour Court or Tribunal for adjudication after the
expiry of 45 days from the date he has made the application to the Conciliation Officer for conciliation of the
dispute. But the application can be made to the Labour Court or Tribunal before expiry of 3 years from the
date of discharge, dismissal, retrenchment or otherwise termination of service.

Lay Off means the failure, refusal or inability of an employer to give employment to a workman whose name
is borne on the muster-rolls,
 on account of shortage of coal, power or raw materials or the accumulation of stocks
 break-down of machinery
 natural calamity
 for any other connected reason.
If workman presents himself for work at the establishment and is not given employment within 2 hours, he
shall be deemed to have been laid off for that day.

Lock out means the temporary closing of a place of employment or the suspension of work, or the refusal by
an employer to continue to employ any number of persons employed by him.

Public Utility Service means -

(i) any railway service or any transport service for the carriage of passengers or goods by air; or any
service in major port or dock;
(ii) any section of an industrial establishment, on the working of which the safety of the establishment
or the workmen employed depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the public;
(v) any system of public conservancy or sanitation;

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(vi) any industry specified in the First Schedule which the appropriate Government may, if satisfied
that public emergency or public interest so requires, by notification in the Official Gazette, declare to
be a public utility service for the purposes of this Act, for such period as may be specified in the
notification

Retrenchment means termination of the service of a workman for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action, but does NOT include:
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation
(b) termination of the service of the workman as a result of the non-renewal of the contract of
employment
(c) termination of the service of a workman on the ground of continued ill-health.

Settlement means a settlement arrived at in the course of conciliation proceeding.

Strike means a cessation of work by a body of persons employed in any industry acting in combination, or a
concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been
so employed to continue to work or to accept employment;

Trade union means a trade union registered under the Trade Unions Act, 1926.

Tribunal means an Industrial Tribunal constituted under this Act.

Unfair labour practice means any of the practices specified in the Fifth Schedule under this Act.

Wages means all remuneration capable of being expressed in terms of money, be payable to a workman in
respect of his employment. It includes -
(i) Allowances (including dearness allowance);
(ii) Value of any house accommodation, or of supply of light, water, medical attendance or other
amenity like food.
(iii) Traveling concession;
(iv) Any commission payable on the promotion of sales or business or both.
But it DOES NOT include
(i) any bonus;
(ii) any contribution towards pension fund or provident fund.
(iii) any gratuity payable.

Workman means any person (including an apprentice) employed in any industry to do any manual, unskilled,
skilled, technical, operational, clerical or supervisory work. But it DOES NOT includes
(i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957 or
(ii) who is employed in the police service or as an officer or other employee of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding Rs 10,000 per mensem
or exercises.
As per Amendment in 2010, Supervisors drawing wages not exceeding Rs. 10,000 per month are coming
within the definition of workmen. Earlier this limit was Rs 1600 per month.

Chapter II: AUTHORITIES UNDER THIS ACT (machinery for conciliation and adjudication

Sec. 3- Works Committee

 In case, 100 or more workmen are employed in the preceding 12 months, the appropriate Government
may require the employer to constitute a "Works Committee".
 Number of representatives of workmen shall not be less than number of representatives of employer.
 It shall be the duty of the Works Committee to promote measures for securing and preserving amity
and good relations between the employer and workmen.

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Sec. 4- Conciliation officers

 The appropriate Government may appoint one or more Conciliation Officers, charged with the duty of
mediating in and promoting the settlement of industrial disputes. (for Conciliation).
 A conciliation officer may be appointed for a specified area, specified industries in a specified area or
for one or more specified industries and either permanently or for a limited period.
Sec. 5- Boards of Conciliation
 The appropriate Government may constitute a Board of Conciliation for promoting the settlement of
an industrial dispute, which shall consist of a Chairman and 2 or 4 other members.
 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.
Sec. 6- Courts of Inquiry
 The appropriate Government may constitute a Court of Inquiry for inquiring into any matter of
industrial dispute (for Conciliation).
 A court may consist of one independent person or of such number of independent persons as the
appropriate Government may think fit and where a court consists of two or more members, one of
them shall be appointed as the chairman.
Sec. 7- Labour Courts
 The appropriate Government may constitute one or more Labour Courts for the adjudication of
industrial disputes relating to any matter specified in the Second Schedule
 A Labour Court shall consist of one person only to be appointed by the appropriate Government.
 A person shall not be qualified for appointment as the presiding officer of a Labour Court, unless
o he is, or has been, a Judge of a High Court; or
o he has, for a period of not less than 3 years, been a District Judge or an Additional District
Judge; or
o he has held any judicial office in India for not less than 7 years; or
o he has been the presiding officer of a Labour Court constituted under any Provincial Act or
State Act for not less than 5 years.
o he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of
the State Labour Department, having a degree in law and at least 7 years' experience in the
labour department including 3 years of experience as Conciliation Officer.
o he is an officer of Indian Legal Service in Grade III with 3 years' experience in the grade
Sec. 7A- Industrial Tribunals
 The appropriate Government may, constitute one or more Industrial Tribunals for the adjudication of
industrial disputes, whether specified in the Second Schedule or the Third Schedule.
 A Tribunal shall consist of one person only to be appointed by the appropriate Government.
 A person shall not be qualified for appointment as the presiding officer of a Tribunal unless
o he is, or has been, a Judge of a High Court; or
o he has, been a District Judge or an Additional District Judge, for not less than 3 years,
o he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of
the State Labour Department, having a degree in law and at least 7 years' experience in the
labour department including 3 years of experience as Conciliation Officer.
o he is an officer of Indian Legal Service in Grade III with 3 years' experience in the grade
 The appropriate Government may appoint 2 persons to advise the Tribunal in the proceedings.
Sec. 7B- National Tribunals
 The Central Government may, constitute one or more National Industrial Tribunals for the
adjudication of industrial disputes:
o If it involves questions of national importance
o If it involves matters of such a nature that industrial establishments situated in more than one
State are likely to be interested in, or affected by, such disputes.
 A National Tribunal shall consist of one person only to be appointed by the Central Government.
 A person shall not be qualified for appointment as the presiding officer of a National Tribunal unless
he is, or has been, a judge of a High Court.
 The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the
National Tribunal in the proceeding before it.

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