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LL Notes

The document outlines the powers and duties of the registrar in relation to trade unions, including the authority to call for information, conduct elections, and register or cancel trade unions based on compliance with legal requirements. It also discusses the Industrial Disputes Act of 1947, highlighting its features, the definition of 'industry', and the principles of collective bargaining, along with the procedures and conditions surrounding strikes. Additionally, it explains the settlement of industrial disputes through arbitration, conciliation, and adjudication, detailing the roles of various authorities involved.

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0% found this document useful (0 votes)
29 views46 pages

LL Notes

The document outlines the powers and duties of the registrar in relation to trade unions, including the authority to call for information, conduct elections, and register or cancel trade unions based on compliance with legal requirements. It also discusses the Industrial Disputes Act of 1947, highlighting its features, the definition of 'industry', and the principles of collective bargaining, along with the procedures and conditions surrounding strikes. Additionally, it explains the settlement of industrial disputes through arbitration, conciliation, and adjudication, detailing the roles of various authorities involved.

Uploaded by

aamirlhan33
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 46

- By YPS

Unit - 1
POWERS AND DUTIES OF REGISTRAR

He is a person who keeps the record and chief administrator of the dept., he appointed under section
3 and has certain power and duties to perform for the purpose of registration.

Appropriate govt. may also appoint additional and deputy registrar for the help of registrar (sec.
2(f)).

Section 7 - The registrar in order to satisfy himself that the provisions of section 5, 6 are fulfilled
can call for further particulars and is having power to even refuse the registration of Trade Union
if such information is not given to the registrar.

Registrar can also suggest to alter name of trade union which want to get registered if such name
is already existing by another trade union.

DUTIES OF REGISTRAR:

1. Call for information and make enquiries.


2. Call for elections.
3. Call for change the name of TU.

the following cases talk about the duties of registrar-

O.N.G.C Workers Association v. State of West Bengal: it is the duty of registrar to check that
registration is given to that trade union only which comply with the conditions of registration. This
case also talks about limitation on the powers of registrar. Registrar is not a quasi-judicial authority
and has no power to decide the disputes on the question of fact or law.

North East Railway Mazdoor Union v. Registrar of Trade Union: this case talks about the
administrative duty of registrar. Any changes in the name of office bearers are being observed by
registrar. It is duty of registrar to check whether the recorded facts conform to the actual facts or
not.

Inland Steam Navigation Workers Union(in re): after receiving of the application by registrar,
it is the duty of registrar to examine the application. If the trade union is having same objects as
mentioned in the rules and all the requirements of act and regulations get complied with, it was
duty of registrar to register trade union.

Renipat greners employee union v. commissioner of labour, madras HC held that the labour
has committed an error in rejecting the election and directed the commissioner to conduct the
election elect the representatives which could get the registration from management department.
Section 8:

When the registrar is satisfied that all the things that are required for registration is satisfied, the
registrar will register the trade union by making an entry in the register.

Tata workers union v. State of Jharkhand it was held that registrar could not intervene in matter
of holding the election of office bearer of the registered trade union.

IFFCO Phulpur Karamchari Sangh v. Registrar of Trade Union, held that trade union will get
registered under section 8 only when it fulfills all the conditions of registration.

Section 9: It is a conclusive evidence that trade union has been registered under the act.

Certificate of registration is being granted to TU after fulfilling all the conditions as provided by
the act.

Section 10: cancellation of registration by the registrar only on the grounds following grounds –

• Application – on the application of TU.


• Ground – if certificate has been obtained by fraud, mistake or if it is in contravention to
provision of the act.
• Number of members – registrar is of opinion that registered trade union ceases that
requisite number of members.\

Provided that at least 2 months prior notice is given by registrar except for application
ground.

Electric Companies Officers v. Registrar of Trade Union: there should be willful contravention
of the provisions of act in order to cancel the registration of trade union.

Section – 11

If not satisfied with the decision of registrar regarding refusal or withdrawal or cancellation then
may appeal to prescribed authority, i.e. head office of

A. Presidency town
B. Labour court or industrial tribunal court
C. Above additional or assistant judge of principal civil judge of original jurisdiction.

The appellate court have following power –

A. Dismiss of appeal.
B. Pass the order for registering the union.
C. Issue certificate for registering the union under section 9.
D. Set aside the order or to withdraw or cancel the certificate.
Procedure : same as followed under CPC, 1986.
Unit - 2

INDUSTRIAL DISPUTE, 1947


Salient features of ID Act, 1947

1. It is a beneficial legislation.
2. Speedy resolution of industrial dispute.
3. Securing the good relationship between employer and employees.
4. Prevention of illegal strike and lockout.
5. Right to compensation in case of retrenchment.
6. Recognition of collective bargaining.
Industry

Section 2(j)of the ID act, 1948 "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.

D.N Banerji vs. P.R Mukherji, Supreme Court held that an organization run by the municipality
constitute an industry. The Court observed by giving a wider interpretation to the later part of the
definition under Sec.2(j) of ID Act, 1948 which refers to calling service, employment or industrial
occupation or avocation of workmen".

State of Bombay vs. Hospital Mazdoor Sabha & Corp. of the city of Nagpur vs. its Employees
the court in these cases interpreted the definition widely and held that the second part of the
definition implies providing an inclusive definition. However, the definition does not include the
legal or sovereign function of the state.

In the Hospital Mazdoor Sabha case, it was held that the hospital was an industry. SC stated that
there are 2 working principles for the determination of the term industry which are -

1. That there should be a systematic activity habitually undertaken for the production and
distribution of good or for rendering material services to the community at large with the
help of employees in an undertaking.
2. If there is an absence of profit motive we can say it is not analogous to the activity of
business.

University of Delhi vs. Ram Nath the Supreme Court had reversed the above trend by interpreting
the definition of industry narrowly thereby holding that Delhi University cannot be considered an
industry. This created the thought that the university of Delhi case was decided not on the ground
of logic but on the basis of a sense that if the scope of the Industrial dispute Act is enlarged to
cover educational institutions it might have an adverse effect on discipline in educational
institutions.

Madras Gymkhana Club Employees' Union vs. Management of Gymkkhana Club, held that
the clubs' having membership was not an industry.

Management of Safdarjung Hospital v/s. Kuldip Singh Sethi The Apex Court Overruled the
Hospital Mazdoor Sabha case and held that the hospital is not an industry. Therefore, a profession
like that of an attorney/lawyer/solicitor must be considered to be outside the definition of industry.

Bangalore Water Supply and Sewerage Board v. A. Rajappa The Supreme Court held that
hospitals, clubs, and educational institutions, research and charitable institutions as industries.

The court had laid down a triple test to determine whether an organization is an industry or not.
1. Where:

a. systematic activity,
b. organized by co-operation between employer and employee
c. for the production and/or distribution of goods and services calculated to satisfy human
wants and wishes there is an 'industry' in that enterprise.

2. Absence of profit motive or gainful objective is irrelevant.

3. The true focus is functional and the decisive test is the nature of the activity.

4. If the organization is a trade or business, it does not cease to be one because of philanthropy
animating the undertaking.

The present IR code, 2020 has been well-drafted by the legislature in such a way that it caters for
the present-day needs through its comprehensive and accessible nature of legislature.

Collective Bargaining

Acc. C S Golden collective bargaining is a measure to distinguish profit and benefit right from the
industry among all the participating institutions.

Two principles came into existence

1. hire and fire


2. laiszz faire

to regulate the relation between the parties may be as follows

1. provision of enforcement of CB
2. method of settlement of dispute
3. grievance procedure
4. recognition of TU as a bargaining agent
5. equipment of the union members seeking the employment
6. duration of employment and agreement
7. undertaking not to go on strike or calling the lock-out
8. procedure for negotiation of new agreement.
Karnal Leather Karamchari Sanghatan v. Liberty Footwear Company, the Supreme Court
laid down that the Industrial Disputes Act, 1947 was enacted for the purpose of securing social
justice by means of collective bargaining. The court further stated that arbitration comes within
the purview of statutory tribunals. The workers involved must be aware of what is presented before
the arbitrator and must be able to share their arguments and claims before him.
Advantages of collective bargaining

1. Being a part of a group helps employees to voice their demands and negotiate better with
their employers.
2. It helps to improve the workplace conditions for employees.
3. It makes the rights and obligations of both employers and employees clear.

Disadvantages of collective bargaining

1. It is a long complicated process as the union of employees and the employers go back and
forth while negotiating.
2. The presence of multiple trade unions in India.
3. Most trade unions are also backed by or associated with a political party. Oftentimes, it is
the decision of the party that influences the trade union’s demands.
4. There is no way to determine which union represents the employees.
Some of the salient features of collective bargaining are:

1. Group Action: Collective bargaining is a group action as opposed to individual action. Both
the parties of settlement are represented by their groups.
2. Continuous Process: Collective bargaining is a continuous process and does not end with
one agreement.
3. Bipartite Process: Collective bargaining is a two party process. Both the parties—
employers and employees— collectively take some action. There is no intervention of any
third party.
4. Flexible and Mobile and not Fixed or Static: It has fluidity. There is no hard and fast rule
for reaching an agreement. There is ample scope for compromise.
5. Dynamic: It is relatively a new concept, and is growing, expanding and changing.

Unit -3

SECTION 22

Section 2(q) of the ID Act states that 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.

Ingredients of strike are

1. Cessation of work
2. Concerted refusal
3. Common understanding

Conditions of cessation of work –


1. Refusal to accept an employment.
2. Partial refusal of work.
3. Refusal to work overtime.

Forms of strikes

Sympathetic strike is when some industry strikes in support of another.

Token Strike is for a day or a few hours or for a short duration because its main object is to draw
the attention of the employer by demonstrating the solidarity and co-operation of the workers.

General Strike, the workmen join together for common cause and stay away from work, depriving
the employer of their labour needed to run his factory. General Strike is for a longer period. Token
Strike is also a kind of General Strike.

Stay-in-Strike: It is also known as ‘tools-down-strike’ or ‘pens-down-strike. It is the form of strike


where the workmen report to their duties, occupy the premises but do not work. The employer is
thus prevented from employing other labour to carry on his business.

‘Go-Slow’ strike, the workmen do not stay away from work. They do come to their work and
work also, but with a slow speed in order to lower down the production and thereby cause loss to
the employer.
There must be an industry. If there is no industry, there can be no strike. There must be relationship
between employer and employee.

Section 22(1) of the Industrial Dispute Act, 1947 prohibitions on the right to strike.

No person employed in public utility service (are services provided by the government, which
are essential for citizens need – u/s 2(n) of ID ACT, 1947) shall go on strike in breach of contract:

(a) Without giving to employer notice of strike within six weeks before striking
(b) Within 14 days of giving such notice; or

(c) Before the expiry of the date of strike specified in any such notice as aforesaid; or
(d) During the pendency of any conciliation proceedings before a conciliation officer
under section (10(3) and 10(4)(a)) and seven days after the conclusion of such proceedings.
The laborer called for a holiday on 1st May which is International labour Day. Under section 2(q)
it is a concerted refusal. Hence it was a strike.

Mineral Miners' Union vs Kudremukh Iron Ore Karnataka HC held that after the expiry of notice
of notice a fresh notice is necessary and other consequences will follow only from the date fresh
date.

Swadeshi cotton mill co. v. its workmen the company held that they have violated sec. 22 of IDA.
The SC stated that the employer failed to prove the workmen working in the silk industries were
assigned any duties in the cotton industry which was declared as PUS under schedule – I and it is
the responsibility of the employer to provide an evidence that these employees were part of the
cotton mill.

State of Bihar vs Deodar Jha patna HC observed what is the valid contract of employment? If there
is any contract between the employee and employer that employees will not go on strike. The court
held that it is not a valid contract, it is against the statutory law. It is against the sec. 26 of Indian
Contract Act.

Procedure

• First give the notice to start the strike

• Notice mentioned the starting date of the strike and cannot start the strike before
such date – Section 22(1)(c)

• However, such starting date must be after the 14 days of notice giving date – Section
22(1)(b)

• Strike must be start within 6 weeks otherwise notice will expired and fresh notice
will be required – Section 22(1)(a)

• If matter is under conciliation, then strike cannot be start but can after the 7 days of
the result of conciliation – Section 22(1)(d).
NOTE - These provisions do not prohibit the workmen from going on strike but require them to
fulfill the condition before going on strike. Further these provisions apply to a public utility
service only.

SECTION 23

No person employed in public or non-public utility service (both) shall go on strike in breach of
contract:

a) During the pendency of conciliation proceedings before a board and till the expiry
of 7 days after the conclusion of such proceedings;

b) During the pendency and 2 months after the conclusion of proceedings before a
Labour court, Tribunal or National Tribunal.

c) During the pendency and 2 months after the conclusion of arbitrator, when a
notification has been issued under sub- section 3 (a) of section 10 A;

d) During any period in which a settlement or award is in operation in respect of


any of the matter covered by the settlement or award.

CASE LAW: Ballarpur Collieries Co. v. H. Merchant it was held that where in a pending
reference neither the employer nor the workmen were taking any part, it was held that section 23
has no application to the strike declared during the pendency of such reference.

NOTE – Section 23 is general and deals with all types of strike (public utility and non-public
utility) and Notice is not covered.

Principle of Section 23 – to ensure peaceful atmosphere and arbitration, conciliation proceeding


go on smoothly
ILLEGAL STRIKE
Bharat petroleum corporation ltd. v. Bharat petroleum employee union, 2003 madras HC held that
there is a compliance of section 22(1) is necessary.
Unit – 4

Settlelement of Industrial Dispute

1. Arbitration
2. Conciliation
3. Adjudication

Authorities under this act are covered u/s 3-7B

Sr. Appointing Members & Powers


Authority Section Empowering
No. Authority Qualification & Duties

1 Works Section Employer on (i)Representatives of (i)To promote


Committee 3 Special or employers and workmen measures for securing
General where number of and preserving amity
Order of representatives of and good relations
Appropriate workmen shall not be less between the employer
Govt. than the number of and workmen.
representatives of the
employer. (ii)Deliberate upon the
matters of the common
(ii)The representatives of interest of both
the workmen are to be employer and workmen
chosen in the prescribed
manner in consultation (iii)Put in all possible
with their trade union, if efforts to compose any
any. material difference of
opinion in respect of
such matters.

(iv)To carry day to day


activities in the
industrial
establishment between
the workmen and
employer.
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

2 Conciliation Section The (i)Such number of persons (i)The conciliation


Officers 4 appropriate as appropriate Government officer shall have the
Government thinks fit, to be conciliation same powers as are
by officers. vested in a Civil Court
notification under the Code of Civil
in the Official (ii) A conciliation officer Procedure, 1908.
Gazette may be appointed for a
specified area or for (ii)A conciliation
specified industries in a officer may enforce the
specified area or for one or attendance of any
more specified industries person for the purpose
and either permanently or of examination of such
for a limited period. person or call for and
inspect any document
which he has ground
for considering to be
relevant to the
industrial dispute or for
verifying the
implementation of any
award

(iii) Shall hold


conciliation
proceedings in the
prescribed manner and
a report on settlement
arrived or otherwise to
the appropriate
Government within 14
days or earlier.

(iv) has the power to


enter the premises for
the purpose of enquiry.
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

(v) To send a report to


an appropriate gov. u/s
12(3) and (4).

3 Board of Section The (i)Board shall consist of a (i) Board shall have the
Conciliation 5 appropriate chairman and two or four power of a Civil Court
Government other members, as the under the Code of Civil
by appropriate Government Procedure, 1908 (5 of
notification thinks fit. 1908) when trying a
in the Official suit on matters defined
Gazette (ii) The chairman shall be under the Act. Every
an independent person and inquiry or investigation
the other by a Board shall be
members shall be persons deemed to be a judicial
appointed in equal proceeding within the
numbers to represent the meaning of sections
parties to the dispute. A 193 and 228 of the
person appointed to Indian Penal Code (45
represent a party if fails to of 1860).
make a recommendation
for the appointment of the (ii) Investigate without
member then appropriate delay the dispute and
gov. appoint a person as it all matters affecting the
thinks fit to represent a merits and the right
party. settlement thereof and
doing everything that
promotes a fair and
amicable settlement.
Board will also send a
report to appropriate
govt. on settlement of
disputes or otherwise in
complete details within
2 months of starting
proceedings.
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

4 Courts of Section The A Court may consist of one (i) ‘Courts of Enquiry’
Enquiry 6 appropriate or more independent shall have the power of
Government persons on discretion of a Civil Court under the
by the appropriate Code of Civil
notification Government. One of them Procedure, 1908 (5 of
in the Official shall be appointed as the 1908) when trying a
Gazette chairman. Court can act in suit on matters defined
absence of chairman but under the Act. Every
not when services of him inquiry or investigation
has ceased. by a ‘Court of Enquiry’
shall be deemed to be a
judicial proceeding
within the meaning of
sections 193 and 228 of
the Indian Penal Code
(45 of 1860).

(ii) A ‘Court of
Inquiry’ shall inquire
into the matters
referred to it and report
thereon to the
appropriate
Government ordinarily
within a period of six
months from the
commencement of its
inquiry.

5 Labour Section The A Labour Court shall (i) ‘Labour Courts’


Courts 7 appropriate consist of one person only shall have the power of
Government to be appointed by the a Civil Court under the
by appropriate Government; Code of Civil
notification to be qualified for Procedure, 1908 (5 of
appointment as the 1908) when trying a
presiding officer of a suit on matters defined
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

in the Official Labour Court must qualify under the Act. Every
Gazette certain criteria (a) he must inquiry or investigation
be existing or an ex- Judge by a ‘Labour Courts’
of a High Court (b) a shall be deemed to be a
District Judge or an judicial proceeding
Additional District Judge within the meaning of
for a period of not less than sections 193 and 228 of
three years or (c) has held the Indian Penal Code
any judicial office in India (45 of 1860).
for not less than seven
years or (d) he has been the (ii) Labour Courts
presiding officer of a under their power of
Labour Court for not less special relief u/s 11A
than five years. can set aside the order
of discharge or
dismissal and direct
reinstatement of the
workman or give other
relief to the workman
including the award of
any lesser punishment.

(iii) Where an
industrial dispute has
been referred to a
Labour Court for
adjudication, it shall
hold its proceedings
expeditiously and shall,
submit its award to the
appropriate
government.

6 Industrial Section The A Tribunal shall consist of (i) ‘Tribunals’ shall


Tribunals 7A appropriate one person only to be have the power of a
Government appointed by the Civil Court under the
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

by appropriate government. Code of Civil


notification The person shall not be Procedure, 1908 (5 of
in the Official qualified for appointment 1908) when trying a
Gazette as the presiding officer of a suit on matters defined
Tribunal unless- (a) he is, under the Act. Every
or has been, a Judge of a inquiry or investigation
High Court; or (b) he has, by a ‘Tribunals’ shall
for a period of not less than be deemed to be a
three-years, been a District judicial proceeding
judge or an Additional within the meaning of
District Judge. The sections 193 and 228 of
appropriate government the Indian Penal Code
may on its discretion, (45 of 1860).
appoint two persons as
assessors to advise the (ii) Tribunals under
Tribunal in the proceeding their power of special
before it. relief u/s 11A can set
aside the order of
discharge or dismissal
and direct
reinstatement of the
workman or give other
relief to the workman
including the award of
any lesser punishment.

(iii)Where an industrial
dispute has been
referred to a Tribunal
for adjudication, it shall
hold its proceedings
expeditiously and shall,
submit its award to the
appropriate
government.
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

7 National Section The Central A National Tribunal shall (i) ‘National Tribunals’
Tribunals 7B Government consist of one person only shall have the power of
by to be appointed by the a Civil Court under the
notification Central Government. A Code of Civil
in the Official person shall not be Procedure, 1908 (5 of
Gazette qualified for appointment 1908) when trying a
as the presiding officer of a suit on matters defined
National Tribunal unless under the Act. Every
he is, or has been, a Judge inquiry or investigation
of a High Court. Further by a ‘National
the Central Government Tribunals’ shall be
may appoint two persons deemed to be a judicial
as assessors to advise the proceeding within the
National Tribunal in the meaning of sections
proceeding before it. 193 and 228 of the
Indian Penal Code (45
of 1860).

(ii) National Tribunals


under their power of
special relief u/s 11A
can set aside the order
of discharge or
dismissal and direct
reinstatement of the
workman or give other
relief to the workman
including the award of
any lesser punishment.

(iii)Where an industrial
dispute has been
referred to a National
Tribunals for
adjudication, it shall
hold its proceedings
Sr. Appointing Members & Powers
Authority Section Empowering
No. Authority Qualification & Duties

expeditiously and shall,


submit its award to the
appropriate
government.

Quorum of Board of Conciliation u/s 5(4)


Case laws
Unit – 5
Objective

The main objective behind implementation of the Employees Compensation Act, 1923 was to
provide payment by employers to employees in the form of compensation for any loss or injuries
suffered by employees in an accident.

Definitions:

Dependent

According to section 2(d) of the Employees Compensation Act 1923, the word dependent includes
the following relatives of a deceased person, such as:

1. a widow of the deceased person, minor legitimate child, unmarried legitimate daughter or
a widowed mother;
2. a son or daughter who has attained the age of 18 years and is infirm or a person who is
completely dependent on the earnings of the employee at the time of his death;
3. a person who is partially or completely dependent on the earnings of deceased employee,
this may include:
a) a widower
b) a parent apart from widower mother
c) in case no parent of the workman is alive a paternal grandparent
d) a widowed daughter in law.

Partial disablement:

According to section 2(1)(g) of Employee�s Compensation Act, 1923 it can be classified into
categories i.e.:

Temporary partial disablement:

It is a situation in which earning capacity of an employee decreases due to temporary disablement


to perform his duty in the course of employment.

Permanent partial disablement:

In such a situation the earning capacity of employee deemed to be reduce permanently in every
course of employment that he was capable of taking at that point of time.
Total disablement

According to section (2)(l) of Employees Compensation Act, 1923 it can be classified into two
categories i.e.:

Temporary total disablement

In this case the injury is such that it causes disablement of a nature which leads to incapacity of
performing any duty as he could at the time of accident.

Permanent total disablement-

It includes any such injury as specified in part I of Schedule I. Further total disablement includes
those injuries as specified in part II.

Employers liability for compensation:

The whole purpose of the Act is to provide compensation to employees who suffer any injury due
to accident cause in course of employment. As per section 3(1) of the Act an employer is liable to
pay compensation to an employee under the following circumstances:

1. In case any sort of mental, physical or bodily injury is injury caused to employees i.e.,
personal injury takes place.

2. The accident that occurred out of or in the course o9f employment.

3. The injury caused is such that it leads to death, permanent or temporary disablement or say
partial or total disablement of employees.

4. The injury is cause out of employee- employer relationship.

Doctrine of Notional Extension:

The doctrine of notional extension is a theory that prescribes that compensation is to be paid to the
workers in case of an accident during the course of employment, but the actual cause of adopting
this theory was to include within its scope, the injury and danger originated due to employment
but not necessarily at the workplace, during working hours or while coming or going to the place
of work.

The journey undertaken by workmen in coming to and going from the place of work is excluded
but is subject to theory of notional extension of the premises of the employer. This doctrine was
laid down in following cases-
Case law

In Moondra and Co. vs. Mst. Bhawani case, a truck driver after taking due permission of the
employer went inside the tank of truck to check the source of petrol leak, he lighted a matchstick
inside the tank due to which accident took place and driver sustained huge burn injuries and
eventually died. The court held that since accident took place at the time and place of work hence
dependents of employee were entitled to compensation.
In the last case 3 issues were raised –

a) Whether workman was on duty.


b) There was a natural call during the employment.
c) There is a casual connection b/w the employment and his death.

Amount of Compensation:

Section- 4 of the Employees Compensation Act, 1923 defines amount of compensation

• When Death results from injury- If the employee dies due to any such reason then amount
payable is equal to rupees eighty thousand or fifty percent of the monthly wages multiplied
by a relevant factor as per mentioned in the Schedule 4 of the Act whichever is more.

• When permanent total disablement is caused by injury- If by any chance the employee
faces permanent total disablement due to injury then the amount payable is ninety thousand
rupees or sixty percent provided whichever is more.
• When permanent partial disablement is caused by injury- In such a case the amount payable
is ninety thousand rupees or sixty percent of the disablement.
• When temporary disablement is caused by injury – half month payment of the sum
equivalent to 25% of the monthly wage of employee.

Scope of arising out of employment:

The term arising out of employment includes conditions, nature, incident and obligation of
employment as well. If during work a worker gets injured due to any of the above listed factors
than it would be termed as injury arising out of employment.

Case law:

In Oriental Fire and General Insurance CO. Limited vs. Sunderbai Ramji case, In this case the
labourer was performing hard labour which involved physical exertion. One day labourer after
performing his duty for 3 hours felt a pain in chest and fainted on spot. Later on, when taken to
hospital he was declared dead. The High Court of Gujarat upheld the decision of commissioner
that the injury was caused under the subhead of arising out of employment as specified in section
3(1) of the Act. It is a personal injury that led to his death and has direct nexus with employment.

Scope of arising in course of employment:

The term arising in course of employment implies accident that took place in course of
employment. It involves injury arising out of the risk incident to employment. A very important
factor to make employer liable is that the work performed by employee was at the time and place
which is similar with employment.

Case law:

In National Iron and Steel Company Ltd. vs. Manorama case, the deceased was a boy working at
a tea stall outside the factory, his duty was to serve tea to the employees of the factory. One day
after serving tea while he was on his way back from the factory, he crossed a violent mob of
workers, police in order to protect themselves shot at the mob accidently bullet hit the boy and he
was killed. The court held that since accident took place during the working hours and at place of
employment hence deceased boy will be paid compensation.

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