Labour Law - II
Notes Compiled by
Law Students Federation (LSF)
[LABOUR LAW - II]
Osmania University Syllabus Notes compiled by LSF for May 2016 3YDC IV
Semester Exams Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
May 2016
1Q. Explain various causes of liability of employer to pay
compensation when accident occurs out off and during course of
employment what defences are available to employer substantiate
your answer with relevant cases.?
Ans. Workmen Compensation Act 1923 is social welfare legislation. when
there is accident in Industry then employer have to pay compensation to
Injured workmen and in case of death to his family members.
When employer is Liable :- Following are the grounds of liability of
employee to pay the compensation under the act.
1. When any accident occurred because of Machine.
2. When any outsider enters in industry and cause Injury or death to the
workmen.
3. When employer have provided transport facility and there is accident
of the bus.
4. When employer provide work outside there is accident while going or
coming back then employer is liable.
5. When workmen suffers from occupational disease then it is also
treated as accident and employer have to pay compensation.
There is schedule relating to Occupational disease.
Ex: In cement and cotton factory T.B is common, which is occupational
disease. In chemical factory poisoning is occupational diseases.
When employer is not liable: Following are defences available to
employer to pay compensation.
1. When workmen comes under Intoxicated condition and doing the
work.
2. When workmen doing unauthorised or ultra virus act or disobedience
of employer.
3. When there is internal fighting among the workmen.
4. When it is not occupational disease.
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
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5. When there is accident while coming or going from the industry on
his own vehicle.
Compensation is depend on nature of injury called Disablement.
Meaning of Disablement is incapacity to do normal work there are four
types of Disablement.
1. Temporary Disablement :- When there muscle injury which
result in sickness for 20 days or more period.
2. Permanent Disablement:- When one hand or leg is cut off
then it is permanent disablement.
3. Partial Disablement:- When there is amplitude of one or more
fingers then it is partial disablement.
4. Total Disablement:- In total disablement workmen is alive but
cannot do any work such as both legs or both hands are cut off.
Cases:-
Kamla Bai V/s South Central Railway
Husband of Plaintiff was live man who was doing centring of bogies by
standing between two bogies . Engine gave push speedily and he was
crushed between two bogies and died in accident, the court held that
compensation is awarded to plaintiff under this act.
Kantha Bai V/s Electricity Board Banaras
Husband of Plaintiff was employee of electricity board he went on poll to do
repairing work another employee negligently put on switch he was killed
because of electric shock, Court held that defendant is liable to pay
compensation.
Ganesh Singh V/s Laxmi Soap Factory
Son of plaintiff was supervisor in soap factory he was taking sample of
boiling liquid of the soap. Suddenly he fell in and died because of burn
injuries. Management of soap factory was liable to pay compensation to
plaintiff.
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
May 2016
2Q. What are authorities incorporated under E.S.I Act and various
benefits provided to workmen under the act?
Ans. In 1948 employee state insurance act was enacted which is providing
more benefits to workmen, In modern period 90% industries are covered
under E.S.I act . The term insurance has been used which shows that risk
of the workmen is completely covered under this act, workmen have to pay
contribution towards E.S.I every month to cover the risk, If any industry
workmen are not covered under E.S.I act then they can claim
compensation under workmen compensation act 1923 which is not
withdraw, No workmen can claim benefit under both act.
Authorities Under The Act:-
There are three authorities under E.S.I act
1. E.S.I Corporation :- ESI corporation is in Delhi and branches are in
other states following are the members of ESI corporation
appointment by Central Government .
There is one chair person and one vice chair person
Five person from Central Government offices.
One person is appointed by every state government and union
territory.
Five representatives are from employers organisation and five
representatives are employee’s organisation.
Two persons are from Medical profession
Three persons representing parliament nominated by the
house.
One post is of Director general of corporation to carry on
administration.
ESI corporation hold meeting of all the members periodically and take
policy decision and make the rules for enforcement of ESI act . All
contribution of workmen are send to ESI corporation.
2. Standing Committee:- This is subordinate organ of ESI consisting
of following members.
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
May 2016
There is one chair person
Three members are taken from ESI corporation
Three members are appointed by central government from
there offices
Three members from employers organisation an three
members from employees organisation
One member is nominated by medical council from medical
profession
One member is nominated by Parliament.
Standing committee carry on all administrative work assigned by ESI
corporation and assist the function of corporation.
3. Medical Council :- Medical council consist of following members.
There is director general of health insurance.
There is deputy director general of health service as a member.
There is medical commissioner as a member
One member is nominated by every state and union territory
Three members from employers organisation and three
members from employee organisations.
Three members from Medical profession nominated by Medical
council.
Therefore medical council carry management of ESI hospital and
gave medical certificate relating to disablement nature of injury,
cause of death, when there is accident on basis of report of medical
council corporation is fixed amount of compensation.
Benefits given under ESI act
There are six types of benefits provided under ESI act.
1. Sickness Benefit:- When any workmen is sick then his treatment is
done in ESI hospital without expenses. It is done under In patient or
Out patient according to requirement.
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
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2. Medical Benefit:- Under this benefit all medicine are provided to sick
free of cost, If medicine is costly then lump sum amount is paid
according to rule and he can buy it from outside.
3. Dependence Benefit:- There is also free treatment of Dependence ,
such dependence include wife, unmarried son& daughter who are not
earnings and parents of the workmen, there is also free treatment of
dependent in ESI hospital.
4. Disablement Benefit:- There is also disablement benefit given to
workmen in addition to treatment compensation is paid which is
depend on nature of disablement.
5. Maternity Benefit:- This benefit is provided to female workmen or
the dependence. There is delivery of the women carried on ESI
hospital without any charges. In addition to this employer have to
sanction three month leave with full salary called as maternity leave.
6. Funeral Expenses:- In addition to this corporation pays Rs. 3000/-
towards funeral expenses when there is death of workmen. It can be
claimed by family members.
This are the authorities under ESI act and benefits provided to
workmen.
3Q. Define the term wages and explain kinds what are the methods of
fixation and reversion of wages?
Ans. The term waged has been defined under section 2 of minimum
wages act 1948. Wages means all the payment made by the employees to
workmen in consideration of his service wages include Basic pay, D.A
(Daily allowance), H.R.A, C.C.A(City compensation allowance), overtime
allowance, wages doesn’t include Bonus, Gratuity, Provident funds,
travelling allowance and medical bills.
Rules relating to payment of wages:-
1. Wages to be paid in currency and coins.
2. If strength of workmen is less than 1000(one thousand) then wages
to be paid on or before 7 th of the month
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
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3. If strength of workmen is more than 1000 then wages to be paid on or
before 10 th of month
4. If it is O.T.A then it should be pay along with wages of next month
5. If it is daily work then wages to be paid on same day after completion
of the work
6. Wages can be paid by any methods such as cash, cheque or
depositing in A/C
Kinds of Wages:- There are three kinds of Wages
1. Fair wages:- In this wages workmen gets payment. He can also
enjoy all the luxuries even though his work is inferior developed
country pay fair wages.
2. Living wages :- In living wages there is better payment but it is less
than fair wages. In living wages also workmen can get partial
luxuries, Developing countries are paying living wages.
3. Minimum wages:- In directive principal it is mentioned that living
wages to be paid to workmen but it is not implemented. In India
minimum wages are paid to workmen. It is very less payment in
which workmen cannot enjoy any luxury and he can keep his body
and soul together.
Fixation of Wages:- There are two authorities for fixation of wages.
1. Central Wages Board:- There is central wages board consisting of
chair person appointment by central government, two members from
employers organisation and two members from employee’s
organisation, it is five member body called as Tripartite. This member
prepare report about fixation of wages in particular industry under
central government. Such as railway post, telephone, nationalised
bank, airlines, LIC on basis of report which is discussed in ministry
and wages are fixed or without alteration.
2. State Wages Board:- It is in every state for fixation of wages of
Industry under state government . It consist of following members
There is one chair person appointed by state government
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
May 2016
Two members from employer organisation and two member
from employees organisation. It is tripartite body
If wages are fix for particular industry under state government
and submit report to state government
Report is discussed in meeting of ministers and wages are fixed
with or without alteration by approval of ministry.
Revision of Wages:- Wages are revised generally after five year for
revision of wages a committee or sub-committee is appointed by respective
government committee is consisting of five members.
If there are three members then one is from government side who is chair
person and one is from employers and employee’s organisation.
If there are five member then chairman is appointed by respective
government and two member from employer organisation and two
members are from employee’s organisation.
Committee examine nature of work category of workmen facilities provided
by employees profit made by industry in earlier year and risk involved in
work. On basis of report which is discussed in ministry and approved with
or without alteration.
This detail about the term wages rules of payment of wages, kinds of
wages, fixation of wages and revision of wages.
4Q. Briefly explain provision of health safety and welfare of workmen
specified under factories act 1948?
Ans. There are many provisions under factories act 1948, relating to health
, safety & welfare of the workmen specified from Sec.11-50 of the factories
act. Employer have to implement all this provision otherwise factory
inspector has rights to book case against him.
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
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Provision Relating to Health (Sec.11-20)
1. There should be cleanness of floor & stairs to be done daily. If it is
white washing to walls. Then it is to be done one time every year, if it
is varnishing or oil painting then it should be done once in a 5 year.
2. High and low temperature effect health of workmen therefore
normal temperature to be maintained before using Fans, coolers,
exhaust fans and Air conditioner
3. Dust smoke in factory if dust & fames comes out at the time of
manufacturing then it should be released at greater height by using
chimney. If fumes average then this should be dissolved in water or
chemical
4. Humidification it means vapour in the air should not be high or low .
Normal humidity to be maintained by artificial methods.
5. Lighting there should be lighting on all working place or on the
passage or way it should not be very powerful or dim.
6. There should be drinking water facility at convenient places and
mention on board as drinking water. Cool water is provided in
summer
7. Urinal & latrine there should be sufficient number or urinals & latrine
in factory. It should be separate for male & female workers.
Cleanness to be maintained in urinal & latrine.
Provisions relating to Safety (sec.21-41)
1. Fencing of Machinery: there should be fencing of machinery and
such part to be kept open which is necessary to operate machine
2. Revolving machinery : there are some revolving machine and there
should be sufficient space around it and boundary to be constructed
3. Work to women & children : if at ado scent workmen & women are
employed in factory then they should not be given dangerous work
4. Pits: if there are pits then it should be levelled without delay. If it is
kept open then it should be covered with a lid
5. Oily substances: if there is oily substance follow on floor then it
should be cleaned immediately to prevent accident
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
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6. Lift: in some factory lift are used every 6months engineer have to
inspect and approved the lift
7. Goggles: In some factory there is some welding & melting work,
employer have to provide goggles to protect eyes of workmen
8. High voltage :when there is high voltage current. Then danger sign
to be given & boundary to be constructed around it
9. Fire extinguisher :there should be sufficient number of fire
extinguisher at all working places
10. There should be regular repairing of building where work is
carried on.
11. Siren : There should be siren so that it can be used when there
is an danger.
Provision of Welfare of Workmen (Sec.42-50)
1. Washing Facility : There should be water soap towel to be provided
so that workmen can wash his hand after the work
2. Pair of Dresses : In some factory such as cement, cotton workmen
have to take bath after working hours, employer have to provide a
cupboard and pair of dress so that he can take bath & change the
dress after working hours
3. Sitting Facility : In some industries where work is carried in shift
employer have to provide sitting room for workmen who come early
for work
4. Lunch Room : Employer have to provide lunch room for workmen
there should be cleanness furniture and drinking water
5. First Aid Box : There should be first aid boxes necessary equipment
strength of workmen is 250 or more then dispense with qualified staff
to be there if strength is 500 or more then dispensary & ambulance to
be provided
6. Canteen : There should be one or more canteen to be provided if
strength of workmen is 150 or more then canteen is compulsory .
there should be reasonable rate and employer have to give subsidies
if necessary
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
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7. Crèches : Employer have to provide one or more crèches or
necessary . it is compulsory if strength of women workmen is more
then 50 women can bring children up to 6 year and care to be taken
in crèches .
Short Notes
1Q. Deduction?
Ans. Under payment of wages act employer can make deduction voluntary
or on request of workmen which are as follows
1. There is deduction of provident fund
2. When employee have take loan then it is deduct in Instalment with
interest
3. When employer imposed a fine
4. When employer provide quarter (house) then there is deducted of
H.R.A
5. When transportation is provided then there is deduction of charges
6. Union fee is deducted on request of workmen
7. On request of workmen employer may deduct LIC premium and term
deposit in Bank or Post office
8. When workmen cause damages there is deduct in instalments
2Q. Bonus?
Ans. Employer have to pay bonus to workmen which is mandatory under
payment of bonus act 1965. Which include following points
1. Bonus can be paid at any time during financial year
2. Bonus have to be paid to all workmen except daily wages workmen
3. Bonus is depend on profit of industry but if loss is caused then also
minimum 8.33% bonus have to be paid to workmen
4. Employer can also pay interim bonus and fixed bonus
5. Maximum bonus should not exceed 20%
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
May 2016
6. Bonus is also paid in some industries on basis of working days
7. There can be settlement between employer and workmen on point of
bonus
8. When employer make default to pay bonus without any season then
their is one month imprisonment or fine up to 5,000rs or both.
3Q. Gratuity?
Ans. It is retirement benefit employer have to pay gratuity according to
gratuity act 1972. It is addition to PF and Pension. Gratuity includes
following points
1. There should be minimum 5 years service to claim gratuity
2. If there is death or disablement then gratuity can be claimed after on
year service
3. Gratuity is applicable to labour and white collar employees
4. Gratuity is calculated at the rule of half month salary for one year
service. Salary drawn lastly is considered
5. If service is in years & month then above 6 month is treated as one
year and less than 6 months is deleted
6. Maximum limit of gratuity is 3.5 lacks
7. When employee is terminated on ground of grave misconduct then
there is disqualification to claim gratuity
8. When gratuity is not paid without proper reason then there is three
month imprisonment or fine Rs 50,000 or both.
4Q. Grievance Committee?
Ans. If any industry or factory grievance committee can be constituted .
there are equal number of representative of employer and workmen in
grievance committee. They are generally 3 or 5 member from both sides
grievance committee is delegated powers to inebriant complain in party
matters such as carpenter, medical facility, transportation, shifting of duty
and transfers, grievance committee internals complain and settled it by
corporation of management. This committee is helpful to settle party
disputes at grass root level and promote peace and harmony in industry.
Fourth Semester Osmania University LLB 3YDC Labour Law- II Notes
Prepared by Law Students Federation (LSF)
9703132560/8019318019
May 2016
