UNIT - I

TRADE UNION
DEFINITION:
Trade Union means any combination, whether temporary or permanent, formed;
1. For the purpose of regulating the relations between workmen and employers,
workmen and workmen, or employers and employers or
2. For imposing restrictive conditions on the conduct of any trade or business.
A trade union may also includef two or more trade unions within itself.
FUNCTIONS OF TRADE UNION:
1. To secure for the workers fair wages.
2. To safeguard security of tenure of employment.
3. To enlarge opportunities for promotion.
4. To improve living conditions.
5. To offer good co operation in improvement of production.
6. Promotion of individual and collective welfare.
CHARACTERISTICS OF TRADE UNION:
1. It becomes a body corporate by the name under which it is registered. It is a legal
entity distinct from its members.
2. It has perpetual succession and a common seal.
3. It can acquire both movable and immovable properties.
4. It can sue and be sued.
5. It can enter into any contract.
MINIMUM REQUIREMENTS FOR A TRADE UNION:
1. There must be combination of workmen or employers.
2. There must be a trade or business and
3. The main object of the union must be to regulate relations of employers and
employees.
4. It is not necessary that every union must be registered under the Act.
5. If the union is registered under the act, then it gets the immunities, privileges and
other rights under the Act.
RIGHTS AND BENEFITS FO REGISTERED UNION:

1. The right to sole representation of the workers in any collective bargaining.

2. To raise issues and enter into agreements with employers concerning the terms
and conditions of employment.
3. To collect membership fees and subscriptions payable by members to the union.
4. To put up notice board in the premises of the undertaking and affix notices
relating to meetings, statement of accounts and other announcements.
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5. To discuss with the employer the grievances of the workers.
6. To inspect the place of work.
7. To nominate its representative to the grievance committees.
OBJECTS OF TRADE UNION:
To protect the interests of its union members against the abuse by the employers for
–
1. Better wages
2. Better working conditions
3. Protection against injustice
4. Improvement of self confidence due to union.
5. Labour welfare
6. Industrial peace
7. Collective bargaining
8. Safeguarding the interest of the industry.

MEMBERS OF THE TRADE UNION:

Any person who has attained 15 years may be a member of a registered trade union.
He can enjoy all the rights of a member. But he cannot be an office bearer until he
attains 18 years.

PROVISIONS RELATION TO REGISTRATION OF TRADE UNION: (Sec. 4)

1. Every trade union has to be necessarily registered. For the purpose of

registration, the following conditions must be satisfied.
a. There must be 7 or more subscribers for the registration.
b. They have to subscribe their names to the rules of the trade.

APPLICATION FOR REGISTRATION: (Sec.5)

The application to the Registrar must be accompanied with a copy of rules of the
Trade Union containing the above particulars:
Name, occupation and addresses of the members making the application.
The name and address of the Trade Union.
The names, ages, addresses and occupations of the office bearers of the union.

NOTICE TO REGISTRAR (Sec.6)

The subscribers must give a notice to the Registrar with the following details
1. Name of the trade union and its objects.
2. The lawful purposes for which the general fund is to be used.
3. Maintenance of the list of members.

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4. Provision of adequate facility for inspection.
5. The designation of the post / employment of workers.
6. The conditions under which the fund benefits go to the workers.
7. The mode of admission of office bearers.
8. The amount of subscription. It should not be less than a prescribed amount per
worker per month.
9. The rules and regulations of the trade union.
10. The method of removal of office bearers.
11. The manner of dissolution of the trade union.

CIVIL SERVANTS CANNOT FORM TRADE UNION;

In Tamilnadu non-gazette Government officer’s union, Madras Vs. The Registrar of
Trade Unions, AIR 1962 Mad 234.
The court held that for registration of the trade union, the employees must be
‘workmen’ engaged in trade, business or industry and since the appellants must not
have such capacity, they are only civil servants.
POWERS OF REGISTRAR (Sec. 7 & 8)
On receiving the application of registration, the registrar makes a study of the
contents of the application and if the application is incomplete he may call for further
particulars and he may refuse to accept and may even require the members to alter
the name of the trade union. If the registrar is satisfied with the notice and particulars,
he will register the Trade Union and will issue a certificate of registration.

CERTIFICATE OF REGISTRATION: (Sec.9)

The registrar, on registering a trade union under Sec.8, issues a certificate of
registration in the prescribed form, which shall be conclusive evidence that the Trade
Union has been dully registered under this Act.

WITHDRAWAL / CANCELLATION OF REGISTRATION (Sec.10)

The certificate of registration can be withdrawn under the following circumstances.
i. On the application of members of the trade union.
ii. If the certificate is obtained by fraud or mistake of fact.
iii. If the trade union has willfully contravened the provisions of the act.
iv. If the registrar is satisfied that a registered trade union of workmen withdrawn
from membership.
v. If the original rules in the application form are cancelled.

DISSOLUTION OF TRADE UNION (Sec.27)

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1. To dissolve a registered trade union, a notice signed by members and the
Secretary of the trade union should be sent to the Registrar within 14 days of the
dissolution.
2. If the Registrar is satisfied that the dissolution is affected according to the rules of
trade union, then he registers the dissolution.
3. The dissolution shall have effect from the date of such registration.
4. If the rules of the trade union do not provide about the distribution of funds on
dissolution, then the funds will be distributed as per the provision of the trade
union act.
AMALGAMATION OF TRADE UNION (Sec. 24 to 26)

Any two or more registered trade unions may become amalgamated together as one
trade union.

1. It may be with or without dissolution of the funds of the unions.

2. At least half of the members should have voted and it must be recorded.
3. At least 60% of such recorded voters must be in favour of amalgamation.
4. The change of name and amalgamation must be made known to the registrar.
5. If the change of name resembles the name of any other trade union already
existing, the registrar may refuse to registrar the change of name.
6. The amalgamation and change of name shall have effect from the date of
registration, if the registrar is satisfied with the procedure of amalgamation and
change of name.
7. The change in the name of a Registered Trade Union shall not affect any right of
obligations of the trade union or affect any legal proceeding by or against it.
8. If two or more trade unions amalgamate, such amalgamation will not affect any
right of such trade unions and any right of a creditor.
PRIVILEGES/IMMUNITIES OF TRADE UNION OR RIGHTS AND LIABILITIES OF
REGISTERED TRADE UNION
(GENERAL FUND AND POLITICAL FUND)
(PROTECTION OF UNION OFFICE BEARERS AGAINST CIVIL AND CRIMINAL
CONSPIRACY) (Sec. 15 to 19)

The following are the privileges of a registered Trade Union:

1. CORPORATE BODY:
Every registered union is a body corporate by the name under which it is registered. It
has a perpetual succession and a common seal with the power to acquire and hold

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both immovable and movable properties and to contract and shall by the same name
sue and be sued.

2. FINANCE FOR TRADE UNION: (KINDS OF FUNDS)

Every Trade Union has the privilege of having two funds namely - General fund and
Political fund.

1. GENERAL FUND: (Sec. 15)

Sec.15 of the Act provides the objects for which the general fund can be spent. They
are as follows:

1. The payment of salaries, allowances and expenses of the office bearers of the
trade union.
2. The payment of expenses for the administration of the trade union including the
audit of accounts of the general funds of the trade union.
3. The expenses in prosecution or defence in any legal proceedings.
4. The conduct of trade disputes on behalf of the trade union or any member
thereof. The compensation for members for loss arising out of trade disputes.
5. Allowances to members or their dependants on account of death, old 'age,
sickness, accidents or unemployment of such members.
6. The undertaking of liability of payment of premium under policies of assurance
on the lives of members.
7. The provision of educational, social or religious benefits for members or their
dependants.
8. The upkeep of a periodical published mainly for the purpose of discussing
questions affecting employers or workmen.
9. The payment of contribution to any case intended for the benefit of workmen in
general.
10. For any other object as notified by the appropriate Govt. in the official gazette.

II. POLITICAL FUND: (Sec. 16)

A registered Trade Union may constitute a separate fund for promotion of civil and
political interests of the members. Such fund can be used in furtherance of the
following objects:

1. Payment of expenses incurred by a candidate for election as a member of any

legislative body or local authority.
2. Holding of any meeting or distribution of any literature or notice in support of such
candidate.

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3. The maintenance of any person who is a member of any legislative of any
local authority.
4. The registration of the electorates or the selection of any candidate for legislative
body or any local authority.

COLLECTIVE BARGAINING

Collective bargaining means negotiation. It is a way in which workers rights are

placed to archive industrial democracy. In India, it came a little bit late somewhat end
of the 19th century and starting the 20th century. The right to bargain collectively with
an employer promotes the independence of workers to influence the establishment in
case of mismanagement to work with dignity and liberty. It is an instrument for
pursuing external ends as well as constitutional valuable as a practice of self-
governance.

FEATURES OF COLLECTIVE BARGAINING:

1. Collective process.

2. Participation of workers and management in bargaining.

3. Continuous process, it is a continuous process where negotiation does not end.

4. This includes both industrial growth as well as per capita growth of a worker.

5. It promotes an eco-friendly environment in the workplace.

6. The subject matter of collective bargaining:

7. To decide or carry out a contract which is broad in nature of employment

relationship between workers and employers.

8. The execution of the contract. It is the main part of the contract where the terms
and condition of various matters are implemented.

Problems of Collective Bargaining

1. The main agenda of both employers and union are to settle the matter through
arbitration process between themselves by concluding into a common minimum
agreement rather than sorting it arbitrarily. But collective bargaining is limited to
large plants and factories. Small factory organization does not come under this
rule.

2. In India, laws give an easy way to arbitration. Under the industrial dispute act, the
parties related to the dispute can approach the government to refer the matter for
arbitration to an Industrial tribunal or labour court.

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The following are the aims and objectives of collective bargaining:
1. Upholding industrial democracy
2. Ensuring equality and justice for socially and economically backwards groups
3. Protecting the working class from exploitation
4. Meeting the legitimate expectations of labourers regarding the work they have
undertaken

ADVANTAGES OF COLLECTIVE BARGAINING

The following are the advantages of collective bargaining:

1. Being a part of a group helps employees to voice their demands and negotiate
better with their employers. It is harder for employers to dismiss the demands of a
unified large group of employees or a trade union in comparison with individual
employees.
2. It helps to improve the workplace conditions for employees.
3. It makes the rights and obligations of both employers and employees clear.

TYPES OF COLLECTIVE BARGAINING AGREEMENTS

In India, there are mainly three types of collective bargaining agreements, which are
listed below:
BIPARTITE OR VOLUNTARY AGREEMENT
Bipartite agreements are those agreements or settlements formed in voluntary
negotiations in the process of collective bargaining. As per Section 18 of the
Industrial Disputes Act, such agreements are binding on the parties involved.
SETTLEMENT
A settlement commonly refers to an agreement of tripartite character as a third party
is involved in arriving at it. This is the agreement that is arrived at by the employer
and the employees with the help of a conciliation officer. If during the process of
conciliation, the conciliation officer feels that there is a possibility of reaching a
settlement, he withdraws it himself. After that, the parties examine the terms of the
agreement and report back to the officer within a specified period.
CONSENT AWARD:
When a dispute is pending before a compulsory adjudicatory authority, the parties
can still negotiate between themselves. The agreement that is formed as a result of
such a negotiation shall also be incorporated into the authority’s award and it gains a
binding force.
IMMUNITY FROM PUNISHMENT FOR CRIMINAL CONSPIRACY
(IN TRADE DISPUTES): (Sec. 17)

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Every office bearer/member of union enjoys certain civil and criminal immunities. An
office bearer or member of a Registered Trade union will not be liable to punishment
under Sec. 120 -B [Criminal Conspiracy) of the I.P.C, for any act of furthering any
object of the Union.

IMMUNITY FROM CIVIL SUIT: (Sec. 18)

A legal proceeding shall not be maintainable in any Civil Court against the office
bearers or members of the Trade Union in respect of any act done in furtherance of a
Trade dispute. But they are liable for all other acts of violence or vandalism or any
deliberate trespass. The Trade Union is also not liable in any suit in any Civil Court for
any tortuous act done in furtherance of trade dispute.

Standard Chartered Grindlays Bank Ltd., Vs. Grindlays Bank Employees' Association,
2002 (II) LLJ 174:
The Court held that the display of posters within or outside the place of business is
permissible and the workers are entitled to the protection under Sec. 18 of the Trade
Unions Act, even if the strike is illegal.

PROTECTION TO PROTECTED WORKMEN:

Protected workmen is a workmen who is a office bearer of a registered trade union.
The number of protected workmen must be a minimum of 5 and a maximum of 100.

ENFORCEABILITY OF AGREEMENT: (Sec. 19)

Any agreement between the members of the registered Trade Union is not, void, just
because any of the objects of the agreement is in restraint of Trade.

RIGHT TO INSPECT BOOKS OF TRADE UNION: (Sec. 20)

The account books of a registered Trade Union and the list of members is open to
inspection by an office bearer or member of the trade union.

RIGHTS OF MINORS TO BE MEMBERS: (Sec. 21)

Any person who has attained the age of 15 years may be member of a registered trade
union and enjoy all the rights of a member.

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 UNIT - II

OBJECTIVES AND SALIENT FEATURES OF

INDUSTRIAL DISPUTES ACT - 1947

OBJECT OF THE ACT:

1. The object of the Industrial Disputes Act 1947 is to bring in and maintain industrial
peace and economic justice in industries.

2. In other words, the functions of the industry must be carried on smoothly without
any interruptions and Industrial Disputes Act aims at prevention and speedy
settlement of dispute between the employer and the workmen so that the industrial
operations are not adversely and permanently affected.

3. The root causes of industrial disputes are due to the dissatisfaction of the workmen
that the employers are not paying sufficient wages for the work carried out by them.
So, the aim of Industrial Disputes Act is to render economic justice to the workmen by
settlement of industrial disputes judicially by rational increase in wages, etc.,

SALIENT FEATURES OF THE ACT:

1. Any industrial dispute between the employer and the workmen is settled by
conciliation proceedings through Conciliation Officers, Boards of Conciliation, etc.

2. The awards passed by the industrial tribunals, labour courts, national tribunals and
arbitration are all binding on both the employer and the workmen.

3. This Act provides for prohibition of strikes and lock outs -

(i) during the pendency of any conciliation and/or adjudication proceedings.
(ii) during the proceedings of settlements reached in the course of conciliation
proceedings.
(iii) during the pendency of awards of Industrial Tribunal declared binding by the
appropriate Government.

4. In case of emergency or otherwise, the Act empowers the appropriate Government

to declare certain industries as the public utility services like transport (other than
railways), coal, cotton, textiles, banks, electricity, water, foodstuffs and iron and steel
industries and impose restrictions before going on strike or lock out.

5. The Act provides for compensation for lay off or retrenchment of workmen by the
employer. Further, the employer has to pay compensation to workmen in case of
transfer or closure of an undertaking.

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6. For effective enforcement of the provisions of the Industrial Disputes Act, it
provides for penalties to the employer and the workmen.

7. The, Act provides measures for protection of workmen so that his conditions of
service are not altered when an industrial dispute is pending for conciliation or
adjudication.

8. The Act also provides for recovery of back wages and other payments through
revenue recovery proceedings, in case the award is in favour of the workmen.

APPROPRIATE GOVERNMENT [Sec. 2 (a)]

1. In relation to industrial disputes, Government' means the Central Government

and the State Government concerned depending on the disputes.
2. Whether the Appropriate Government is the Central Government or the State
Government depends on the subject matter of the dispute.
3. The general principle on which the classification of the Central or State authority
over the industrial disputes is based is that in case of an industry carried on by
or under the authority of the Central Government, or the industry being located
in more than one State, the Appropriate Government is the Central Government
so that the problems may be conveniently and uniformly dealt with by the
Central Government.
4. When Banking or Insurance Company has its branches in more than one State,
the Appropriate Government, in case of an industrial dispute relating to such
company, is the Central Government.
5. In case of a dispute arising in Union Territory, reference may be made by the
Central Government since Central Government is the Appropriate Government in
relation to a Union Territory.
MEANING AND CONCEPT OF INDUSTRY [(Sec. 2 (j)]

‘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 is now very wide, but specific. Sec. 2 (j) reads `industry
means any systematic activity carried on by co-operation between an employer and
his workmen'.

The term `industry' includes:

1. Any activity of the Dock Labour Board.
2. Any activity relating to the promotion of sales or business or both.
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The term `industry' does not include:
1. Any agricultural operation, which is carried on as the main activity.
2. Hospitals or dispensaries.
3. Educational, scientific, research or, training institutions.
4. Institutions engaged in any charitable, social or philanthropic service.
5. Khadi or Village Industries.
6. Any activity of the Government as Sovereign function.
7. Any domestic service.
8: Any professional activity, employees being less than ten.
9. Any activity carried on by a co-operative society or a club, the employees being
less than ten.

Decided case laws have held that the following enterprises are not industries:
1. Spiritual or religious service.
2. Restricted category of clubs, co-operatives, research lab and gurukulas.
3. Free legal or medical services on honorarium basis.

The Supreme Court over ruled the decisions given in the earlier cases and laid down
the following conclusions:

(i) If there is systematic activity, organised by co-operation between employer and

employee for the production or distribution of goods and services, to satisfy
human wants `Prima Facie', then it is an industry.
(ii) The venture may be in the public, joint, private or other sector, and the absence of
profit motive is irrelevant.
(iii) It is important that there is employer – employee relationship. Even if the
organisation is for philanthropic purposes, it is an Industry.
(iv) An organised activity possessing all the above elements, although there is no
trade or business, is `industry'.
(v) The following are included under the term `industry', if they fulfil the above
conditions:
a. Professions
b. Clubs
c. Educational Institutions
d. Co-operatives
e. Research Institutions
f. Charitable projects.

(vi) A pious or altruistic mission may employ many persons, but there is no master
and servant relationship.
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(vii) If there is mixture of activities, consisting of industrial and non-industrial
services, then the dominant nature of services will decide whether it is an
industry or not
(viii) Strict Sovereign functions are exempted and not the welfare activities or
economic adventures undertaken by Government or Statutory bodies.
(ix) In departments discharging Sovereign functions, if there are units, which are
industries, and if they are severable, they are considered Industries.

Thus the Bangalore Water Supply and Sewerage Board Vs. A. Rajappa over-ruled the
previous provisions and decisions, and the definition of the term ‘industry' has since
been modified.
WORKMEN [Sec. 2(s)]

Workman means any person (including an apprentice) employed in any industry to do

any manual, unskilled, skilled, technical, operational, clerical or supervisory work for
hire or reward'. The terms of employment may be express or implied.
For raising an industrial dispute under the Act, the term `workman' includes any such
person who has been dismissed, discharged or retrenched in connection with that
dispute.

Workman does not include any such person -

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, drawswages exceeding one
thousand six hundred rupeesper mensem or exercises, either by the nature of the
duties attached to the office or by reason of the powers vested in him, functions
mainly of a managerial nature.

ESSENTIALS:

1. Workman is a relationship brought about by express or implied contract of service

in which the employee renders services for which he is engaged by the employer and
the employer agrees to pay him in cash or kind as agreed between them or statutorily
prescribed.

2. It discloses a relationship of command and obedience.

3. He should be employed to do the work in an industry.

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4. If a contractor employs a workman to do the work which he contracted with a third
person, then the workman of the contractor does not become a workman of that third
person.

Miss. A. Sundarambal Vs. Government of Goa, Daman and Diu, 1989, I Lab LJ 61 (SC):
The Supreme Court held that in order to be a workman, an employee should be
employed to do any skilled or unskilled, manual, supervisory, technical or clerical
work. Judged in this light, a teacher cannot be called a workman.
INDUSTRIAL DISPUTE [Sec. 2 (k)]

`Industrial dispute', means any dispute of difference between:

1. Employers and Employers, or
2. Employers and Workmen, or
3. Workmen and Workmen
In the ordinary sense, an `industrial dispute' means a dispute between the workmen
and the management.
According to Sec. 2-A, if an employer discharges, dismisses or retrenches or
terminates an individual workman, any dispute or difference between that workman
and his employer regarding such discharge, dismissal etc., shall be deemed to be an
industrial dispute.

LIMITATIONS OF INDUSTRIAL DISPUTE:

There are two limitations for the definition of industrial dispute:
1. The term `industrial' relates only to industry and its disputes.
2. Such dispute must relate to the relationship of employers and workmen, the terms
of employment or non employment and the conditions of labour.

TYPES OF INDUSTRIAL DISPUTES:

There are three types of industrial disputes:
1. Individual disputes
2. Collective disputes
3. Deemed industrial disputes

1. INDIVIDUAL DISPUTES:
If any employer discharges, retrenches or dismisses an individual workman, such
dispute between such a workman and his employer is deemed to be an individual
dispute.

2. COLLECTIVE DISPUTES:

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A dispute, which may be initiated by an individual, may be taken up by the fellow
workers or a Union, or a sufficient number of workers, and then it assumes the
collective character and becomes an industrial dispute.

3. DEEMED INDUSTRIAL DISPUTES: That any dispute or difference between a

workman and his employer who discharges, dismisses, retrenches or otherwise
terminates the services of an individual workman, is deemed to be an industrial
dispute.

MACHINERIES FOR SETTLEMENT OF INDUSTRIAL DISPUTES

CONCILIATION AUTHORITIES (Sec. 3 to 6)

The following are the industrial dispute machineries to bring about industrial peace
and conciliation:

A. Works Committees B. Conciliation Officers

C. Boards of Conciliation D. Courts of Inquiry

CONCILIATION:

1. Conciliation means the settlement of disputes through discussion without

litigation. Conciliation is a process by which, discussion between parties are made
through the participation of a conciliator.
2. Conciliation is a form of mediation whereby disputes may be settled short of
arbitration. The mediator is called conciliator.
3. In Industrial Disputes Act, conciliation is made as a statutory mode of settlement of
disputes between the employer and the workmen. While mediation is useful for
settlement of various disputes, 'conciliation is used as a statutory form of
mediation short of arbitration.

CONCILIATION OFFICERS (Sec. 4)

The Appropriate Government, by notification in the official Gazette, appoints
Conciliation Officers. The main duty of Conciliation Officers is to promote the
settlement of industrial disputes. They may be appointed either permanently or for a
limited period

DUTIES OF CONCILIATION OFFICERS:

1. The Conciliation Officer must hold conciliation proceedings in the prescribed

manner in all cases where industrial dispute exists.
2. For the purpose of conciliation, he must investigate the dispute and do things
necessary for amicable settlement of dispute.
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3. If he brings about amicable settlement of dispute, he sends a report to the
settlement along with the Memorandum of Settlement, signed by parties to the
dispute.
4. If no settlement is arrived at, he sends a failure-report stating the steps he had
taken and the reason for the failure to the appropriate Government. The report
must be submitted within 14 days of conclusion of conciliation.

POWERS:
A Conciliation Officer may enter the premises occupied by the establishment for the
purpose of inquiry into any existing or apprehended industrial dispute.

BOARDS OF CONCILIATION.
The appropriate Government, by notification in the Official gazette, may constitute a
Board of Conciliation for promoting the settlement of industrial disputes. The Board
consists of a Chairman and two or more members.
DUTIES OF BOARD:

1. When a dispute is referred to the Board by the Government, it shall try to bring
about a settlement of such dispute. It investigates the dispute and does things
necessary for the purpose of amicable settlement of dispute.
2. If settlement of dispute is arrived at, the Board sends a report to the Government
along with the Memorandum of Settlement
3. If no settlement is arrived at, it sends a report stating the steps taken by it and the
reasons for the failure. The report must be submitted within two months from the
date of reference by the Government. The Government publishes the report within
30 days.
ADJUDICATION MACHINERIES (Sec. 7 TO 9)
REFERENCE OF DISPUTES TO BOARDS, COURTS OR TRIBUNALS

LABOUR COURTS:
The appropriate Government (i.e) either Central or State Government may constitute
one or more courts for adjudication of industrial disputes. The Labour Court consists
of only one person, named as ‘Presiding Officer’

The Presiding officer must have been a Judge of the High Court or a District Judge or
Additional District Judge, with 3 years experience. Must have held the office of the
chairman of the Labour Appellate Tribunal for atleast 5 years and or any Judicial
Officer with atleast 7 years experience.

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REFERENCE OF DISPUTES:
The following are the matters which can be adjudicated by the Labour Court.
i. The legality of an order passed by the employers under the standing orders.
ii. Discharge or dismissal of workmen including reinstatement.
iii. Withdrawal of any perquisites or privileges.
iv. Legality of Strike or Lock out.

FUNCTIONS:
Adjudication of industrial disputes relating to any matter specified in the second
schedule namely:
1. The propriety of legality of any order passed by an employer under the standing
orders.
2. The application and interpretation of standing orders.
3. Discharge or dismissal of workmen including reinstatement.
4. Withdrawal of any customary concession or privilege.
5. Illegality or otherwise of a strike or lockout
6. All matters other than those specified in the 3rd schedule.

DUTIES:
1. The labour court has to adjudicate the industrial disputes relating to the matter
within its jurisdiction.
2. When an industrial dispute has been referred to the Labour Court, it should hold
proceedings immediately, and submit its award within the specified period to the
appropriate Government.
3. The award should be in writing and should be signed by its Presiding Officer.
4. The award should be published within a period of 30 days from the date of its
receipt by the appropriate Government.

PROHIBITION OF STRIEK OR LOCKOUT:

When an industrial dispute is referred to Labour Court, the appropriate Government
may prohibit the continuance of any strike or lockout in connection with such dispute.
The jurisdiction of the Labour Court is limited only to the disputes referred to it by the
Government and cannot decide other disputes arising during the pendency of
reference.

INDUSTRIAL TRIBUNALS:
The appropriate Government, by notification in the Official Gazette, may constitute
one or more industrial tribunals for adjudication of industrial disputes. The tribunal
consists of only one person called the presiding officer.
JURISDICTION:
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The industrial tribunal can exercise jurisdiction in the following matters:
a. Wages.
b. Compensatory and other allowances.
c. Leave with wages and holiday.
d. Hours of work and rest intervals.
e. Bonus, provident fund and gratuity.
f. Shift working system.
g. Classification by grades.
h. Rules of discipline.
i. Nationalization.
j. Retrenchment of workmen and closure of establishment.

REFERENCE OF DISPUTES:
If there is any industrial dispute existing or apprehended, the appropriate Government
may refer the dispute to a Tribunal for adjudication.

PROHIBITION OF STRIKE OR LOCKOUT:

The tribunal may prohibit the continuance of any strike or lock out in connection with
a dispute referred to it.
AWARD
[Sec. 17, 17-A, 18 & 19]
An award is defined as an interim or a final determination of any industrial dispute or
of any question relation to it by any Labour Court, Industrial Tribunal or National
Tribunal or Arbitration.

CONDITIONS CONSTITUTING AN AWARD:

1. There must be an interim or final determination.
2. Such determination should be of an industrial dispute or of any question relating
to such dispute.
3. Such determination should be by any Labour Court, Industrial Tribunal, National
Tribunal or an Arbitration under Sec. 10-A.
4. The award includes interim as well as final award.
5. An interim award is subject to the final adjustment or complete determination of
the dispute.
6. A provisional arrangement is effected in a matter under urgent or unavoidable
situations.
7. An order of decision permitting the parties to withdraw the dispute does not
amount to an award.
8. If the parties reach a compromise in a matter pending before the tribunal, the
decision of the tribunal based in such compromise will constitute an award.

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9. The award must be a speaking one. Failure to give reasons constitutes an error
of law.
10. An award, therefore, should be a determination of the dispute. If there is no
determination, there can be no award.
11. Before giving an award, the parties must be heard. An award made without
giving a party sufficient opportunity of making representation is bad.
12. The award must also be confined to the terms of the reference and should not go
beyond the terms.
13. An award does not have retrospective effect.

ENFORCEMENT OF AN AWARD AGAINST THE EMPLOYER:

An award may be enforced in the following ways:
a. The aggrieved party may apply to the appropriate Government for prosecuting the
defaulting party.
b. If the employer has to pay money to a workman, he may move the appropriate
government for recovery of the money due to him.
c. The party in whose favour the award is granted may file a suit and obtain a decree
which shall be enforced.

PERSONS ON WHO AWARDS ARE BINDING (Sec. 18)

1. An arbitration award which has become enforceable is binding on the parties to

the agreement who referred the dispute to arbitration.
2. An arbitration award or an award of a Labour Court, Industrial tribunal or National
Tribunal is binding:
a. On all parties to the dispute: an award made under a reference covering a
particular industry in a specified area is binding even if they have not taken part in
the adjudication proceedings.
b. On all parties summoned to appear in the proceedings as parties to the dispute.
c. If the party in (a) and (b) is an employer, the award is binding on his heirs,
successors, or assignees in respect of the establishment in which the dispute
relates.
d. If the party in (a) and (b) is composed on workmen, the award is binding on all
persons who were employed in the establishment, and all persons who
subsequently become employed in that establishment.

PERIOD OF OPERATION OF AWARD:

An award shall be in operation for a period of one year from the date on which it
becomes enforceable, but the appropriate Government may reduce the said period or
fix any period as it thinks fit.

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But the total period of operation of any award shall not exceed 3 years from the date
on which it came into operations.

JUDICIAL REVIEW AND FINALITY OF AWARD:

The aggrieved party can challenge the validity and propriety of the award before the
High Court or Supreme Court on grounds of jurisdictional errors, violation of natural
justice, violation of law and on such other illegalities.
SETTLEMENT [Sec. 2 (p)]

1. A conciliation proceeding is held by a Conciliation Officer or Board of Conciliation

and a settlement is the decision arrived at in the course of such conciliation
proceeding.
2. A written agreement between the employer and workman arrived at otherwise than
in the course of conciliation proceeding is also conciliation. Such a written
agreement must be signed by the parties to the agreement in the prescribed
manner.
3. A copy of the agreement must also be sent to an officer authorised 'in this behalf
by the Appropriate Government and to the Conciliation Officer.
4. There are two categories of settlements. One is a settlement which is arrived at in
the course of conciliation proceedings and the second is a written agreement
between employer and workmen arrived at otherwise than in the course of
conciliation proceedings.
5. When a settlement is reached in a proceeding under the Industrial Disputes Act in
which a representative union has appeared, it is binding on all the, workmen of the
undertaking.

DIFFERENCE BETWEEN AWARD AND SETTLEMENT:

1. An award is an interim or final determination of any industrial dispute or of any

question relating to it by any Labour Court, Industrial Tribunal or National Tribunal or
Arbitration.
Whereas settlement means a settlement arrived at in the course of conciliation
proceedings by a Conciliation officer or Board of Conciliation under this Act.

2. Award is a kind of settlement through Court/ Tribunal / Arbitration, whereas

settlement is arrived at in the course of conciliation proceeding by a Conciliation
officer or Board of Conciliation. It is also through written agreement between the
employer and the workmen.

3. Award is in the nature of judgment whereas settlement is a compromise arrived at

the conciliation proceedings or through agreement.

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4. Award prohibits a suit or action in a Civil Court. Where as settlement does not
prohibit a suit or action in a Civil Court.

5. Award becomes enforceable and expiry of 30 days from the date of publication
whereas settlement becomes enforceable immediately.

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 UNIT – III
STRIKES AND LOCKOUTS: (Sec. 22 to 25)

Strike is a collective stoppage of work by workmen to bring pressure on persons who

depend on the production, sale or use of the products of work.
`Strike' refers to a dispute between an employer and his workers, in the course of
which there is a concerted suspension/ stoppage of employment/ work.

PROHIBITION OF STRIKES: (Sec. 22)

1. PUBLIC UTILITY SERVICES: [Sec. 22 (1)]

a. A person employed in public utility goes on strike without fulfilling
the following 4 conditions:

i. The workman must give the employer a notice of strike within 6 weeks before the
strike. So a strike notice is valid only for 6 weeks. No strike can be started after the
expiry of 6 weeks unless a fresh notice of strike is given.
ii. The employee must not go on strike within 14 days of giving such notice. So, a
strike immediately after the notice is also illegal.
iii. The workman should not go on strike before the expiry of the date specified in the
aforesaid notices.
iv. The workman should not go on strike during the pendency of Conciliation
proceeding before the Conciliation Officer and 7 days after the conclusion of such
proceedings, i.e., only from 8th day of conclusion of proceedings, a strike can be
commenced.

RULES:
1. Notice of strike within six weeks before striking is not necessary; here there is
already a lock out in existence.

2. Notice may be given by the Trade Union or the representatives of the workmen
authorised in this behalf.

3. A notice of strike shall not be effective after 6 weeks from the date it is given. So,
the strike must be commenced within the six weeks period.

4. Section 22 (4) says that the notice of strike must be given by prescribed number of
persons to prescribed person/persons in prescribed manner.
5. If, on any day, an employer receives from his workman employed by him any strike
notice, he must within five days of receipt of notice, report to the Appropriate
Government/ Authority.
2. IN INDUSTRIAL ESTABLISHMENTS: (Sec. 23)

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A workman employed in any industrial establishment must not go on strike in breach
of contract with employer.

a. A workman must not go on strike during the pendency of conciliation proceedings

before the Board of Conciliation and within 7 days after the conclusion of
conciliation proceedings, or go on strike during the

b. The workman must not go on strike during the pendency of proceedings before a
Labour Court. Industrial or National Tribunal and within 2 months after the
conclusion of such proceedings.

c. The workmen must not go on strike during the pendency of any arbitration
proceedings before an arbitrator and within 2 months after the conclusion of such
proceeding or

In Madurai Coats Ltd., Vs. Inspector of Factories; Madurai, 1981 I LLJ 255 (SC.)
The workmen went on strike without serving a strike notice. They claimed wages for
national holiday which fell in between the strike period.
The Supreme Court held that they were not entitled to wages, because they had
themselves brought about a situation by going on strike without giving a notice
whereby the management was deprived of their right to get work from them.

TYPES OF STRIKES: There are about eight types of strikes:

1. STAY IN STRIKE: The workers remain inside the factory. They play and talk, but do
not work.
2. TOKEN STRIKE: It is otherwise known as sympathetic strike. It is not actually a
strike. For e.g. `X' Company employees striking on behalf of `Y' Company.
3. Go - SLOW STRIKE: It is also known as work according to schedule, but not
working efficiently. It reduces the production.
4. PEN - DOWN STRIKE: It is refusal to do work or write.
5. TOOL - DOWN STRIKE: It is refusal to use the tools in handling the machines. It is
dangerous for the safety of the workers.
6. RELAY STRIKE: It is only a strike by a part [group] of the workmen in an industry
and in rotation.
7. HUNGER STRIKE: It is of recent discovery and it is the most advocated form of
strike. It may also be 'relay hunger strike'.
8. ILLEGAL STRIKE: (Sec. 24)
For illegal strike, there is no justifiable reason or demand. It is an intentional or willful
strike. Any of the above methods may be adopted for illegal strike.
In the following cases, strike is deemed illegal:

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1. Public Utility Services: If the four conditions given above are violated, it is illegal
strike.
2. In Industrial Establishments: If the four conditions given above are violated, the
strike is illegal.
3. If any industrial dispute is referred to the Board of Conciliation, Labour Court,
Industrial Tribunal or National Tribunal, the appropriate Government by order, may
prohibit the continuance of strike in connection with such dispute.
4. If any industrial dispute is referred to arbitration, the appropriate Government may
prohibit the continuance of strike in connection with such dispute.
Any continuance of strike in violation of the above provisions is deemed to be illegal,
though it is not illegalat its commencement.

PENALTIES FOR ILLEGAL STRIKES' (Sec. 26 to 28)

1. Any workman who commences and continues illegal strike can be punished with
imprisonment upto one month or fine upto Rs.50/- or both. Sec.26
2. Any person who instigates or initiates any illegal strike will be punishable with
imprisonment upto 6 months or fine upto Rs.1000/- or both. (Sec.27)
3. Any person who applies his money to support any illegal strike will be punishable
with imprisonment upto 6 months or fine upto Rs.1000/- or both (Sec.28)
4. The workmen engaged in illegal strike are not entitled to receive any pay for the
period of strike.
5. If any person knowingly applies any money in support of any illegal strike, he
cannot recover such money from the workmen.

WAGES DURING STRIKE PERIOD:

Wages may be given to workmen for the period of strike, only if the strike is legal and
justified. A strike is legal, if it does not violate any provision of the Statute.

LOCK – OUT

Sec. 2 (1) defines a lock out as the temporary closing of place of employment or
suspension of the work or refusal by the employer to continue to employ any number
of persons employed by him.
Thus lock out indicates the temporary closure of the place of business. Lock out
succeeds strike. Lockout is the weapon for the employers, as strike is the weapon for
the workmen.

ESSENTIALS OF LOCKOUT:
1. There is temporary closure of the place of business or the suspension of work or
withholding of work by the employer.
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2. There is an element of demand for which the place of employment is locked out or
closed.
3. Intention to re employ the workers is present.

The following are not Lock – Out:

1. Retrenchment of workmen on the basis of rationalization of employees in an
establishment.
2. Preventing employees who are terminated from service from coming to the place
of work.
3. An employer refusing to allow ‘late-comers’ on a day to work on that day.

LOCKOUT IN PUBLIC UTILITY SERVICES:

1. The employer must give any of his workmen a notice of lockout within 6 weeks
before such lockout.
2. He should not declare lockout within 14 days of such notice.
3. If any period is fixed in the notice, then no lockout is possible before the expiry of
that period.
4. If any arbitration case is pending before an arbitrator, there can be no lockout
during the period of arbitration and within 2 months after the conclusion of such
proceeding.
5. If any conciliation proceedings are going on regarding lockout or strike, then there
can be no lock out during such period and within 7 days after the conclusion of
such proceedings.

LAY-OFF (Sec. 25-A to 25-E)

Lay off is the failure or refusal or inability of an employer to provide employment to

his workmen on account of:
1. Shortage of coal
2. Shortage of raw materials
3. Break down of machinery
4. Accumulation of stock or for any other reason

Lay off takes place only in a continuing business. During lay off, only a portion of
business is closed.

ESSENTIALS OF LAY OFF:

1. The employer must fail or refuse or must be unable to continue the employees in
his employment.

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2. On the day of lay off, the name of the workman laid off must be present in the
Muster roll.
3. The failure, refusal or inability to give employment must be due to shortage of raw
materials or accumulation of stock or break down of machinery or for any other
reason.
4. The employee must not have been discharging workman temporarily.

CIRCUMSTANCES OF LAY OFF: Under the following three circumstances lay off takes
place:

1. If any workman presents himself for the work at the appointed place and if he is
not given any work within three hours, then it is lay off for the day

2. If any workman is not given any employment in the first half of the shift, but given
in the second half of the shift, then lay off is only for half a day.

3. If any workman is given employment for a few hours in both I and II half of the
shift, then there is no lay off and it is considered as a full working day and full
wages is given for the day.

LAY OFF COMPENSATION: (Sec. 25-C)

1. The lay-off compensation is stable for all days except weekly holidays.
2. The workman must be paid 50% of his total basic-wages and dearness allowance.
3. For a period of one year, the lay-off compensation is payable to the workman.
4. If the lay off period exceeds 45 days either continuously or intermittently, then for
only one additional week, the lay off compensation may be extended as per
agreement between the employer and the workman for that week. If there is no
such agreement for that week, then the full wage must be paid to the workman.
5. If it is lawful for the employer to retrench workman after 45 days of lay off, then he
can retrench him, but he must be paid retrenchment compensation.
6. The lay off compensation already paid can be deducted from the retrenchment
compensation.

WORKMEN NOT ENTITLED TO COMPENSATION: (Sec. 25-E)

In the following cases, the workman is not entitled to get lay off compensation:
1. Alternative employment: when the workman refuses to accept any alternative
employment in the same establishment or any other establishment of the industry
within a radius of 5 miles.
a. But such alternative employment must not require any special skill or previous
experience.

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b. The same wages as in the original employment should be paid.

2. If the employee does not present himself for the work at the establishment and at
the appointed hour during normal working hours at least once a day, no lay-off
compensation is payable.
3. If lay off is due to illegal strike or slow down production by the workers, then no
lay-off compensation is payable.

DIFFERENCE BETWEEN LAYOFF AND LOCK OUT:

Lay off is the failure or refusal or inability of an employer to provide employment to

his workmen on account of - (i) Shortage of coal (ii) Shortage of raw materials (iii)
Break down of machinery (iv) Accumulation of stock or for any other reason.
Lay off takes place only in a continuing business. During lay off, only a portion of
business is closed for Lay off, the workman gets layoff compensation of 50% of his
total basic-wages and dearness allowance.

Lock out is the temporary closing of place of employment or suspension of the work
or refusal by the employer to continue to employ any number of persons employed by
him. ‘lock out' indicates the temporary closure of the place of business. For illegal
lock out, the employer must pay full back wages to the workman.
RETRENCHMENT (Sec. 25-F, 25-G, 25-H & 25-K)

Retrenchment is the termination of service of a workman for some or other by the

employer. However, the termination of service should not be inflicted as a punishment
by way of disciplinary action.
The following are not retrenchments:
1. Voluntary retirement
2. Retirement at the age of superannuation, if there is a stipulation in the contract
between employer and employee.
3. Termination of service on the ground of continuing ill health.
4. Termination of service due to non renewal of the contract between employer and
employee on its expiry or termination of such contract due to to he stipulations
mentioned therein.
5. Retrenchment is termination of the service of a workman by the employer for any
reason whatsoever.
6. By compulsory retirement, services of the workmen are concluded and hence it
amounts to termination of services. Thus compulsory retirement amounts to
retrenchment.

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CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN (RETRENCHMENT
COMPENSATION): (Sec. 25-F)
A workman with a continuous service of more than one year can be retrenched. To
invoke the provisions of retrenchment, the workman must have continuous service of
240 days in a calendar year of 365 days.

CONDITIONS FOR RETRENCHMENT:

Such person can be retrenched, only if the following conditions re fulfilled. Otherwise,
the retrenchment is invalid (void retrenchment).
1. One month notice specifying the reason in writing must be given to the workman
before retrenchment.
2. If the period of notice is less than one month, then one month salary must be paid.
3. If there is an agreement between the employer and employee about the
termination of service, then no notice is necessary to the workman.
4. The compensation for retrenchment is 15 days average wages for every completed
year of continuous service.
5. The prescribed notice must be sent to the Government or any other specified
authority in this regard.
DIFFERENCE BETWEEN LAY-OFF AND RETRENCHMENT:

1. Lay off period is maximum 45 days plus one week with the consent of worker.
Retrenchment cannot exceed 45 days.
2. Lay off is the 1 st step; Retrenchment is the 2nd Step.
3. Compensation is half day wage per day in lay. if Compensation is 15 days wages
for every one year period in retrenchment.
4. No ‘last went first come' rule is applicable for lay off. ‘Last went first come’ is the
rule of reinstatement for the retrenched person.

PENALTY FOR LAY OFF AND RETRENCHMENT WITHOUT PREVIOUS PERMISSION:

(Sec. 25-Q)

An employer who violates the provisions relating to prohibition of Lay off and
conditions precedent to retrenchment of workmen shall be punished with
imprisonment extending to one month or fine up to one thousand rupees or with both.
PROBLEMS:

1. A worker of 10 years service was retrenched. At the time of retrenchment his

monthly wages was Rs.3000/- per month. His wages at the time of appointment was
only 1500/- What is his retrenchment compensation?
Monthly wage Rs.3000/- for 15 days = 1500
Period of service 10 years therefore for 10 years = 10 x 1500 = 15000.
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2. A worker of 20 years service was laid off for 30 days. Then he was retrenched. At
the time of retrenchment his wage was Rs. 8000/- per month. What is the
retrenchment compensation?
Retrenchment compensation
Monthly wage Rs.8000/- for 15 days = 4000
Service 20 years; therefore compensation 20 X 4000 = 80000
Lay off compensation for 30 days half day wages 8000/2 = 4000
Total Compensation = 88000

3. A worker of 235 days service was laid off for 45 days and then retrenched. Daily
wage was Rs.70/0 what is his retrenchment compensation?
Period of service is 235 days, lay off 45 days and wage Rs.70/- per day. He is not
entitled to any compensation because his period of service is below one year i.e. 235
days.

4. A workman has put on 11 years and 51/2 months. He was laid off for 60 days and
then retrenched. He was drawing Rs.4000/- at the time of lay off. Please calculate the
compensation payable?
The workman has completed 11 years and 5 ½ months. It is rounded to 11 years. 5 ½
months is neglected as it is below 6 months. Therefore period of service is taken as
11 years. Wage Rs. 4000/- half Rs. 2000/- for 11 years = 22000.
Lay off for 60 days:
Compensation allowed for 45 days only. Half of this period of 22 ½ days or ¾ month
Rs.4000 x ¾ = 3000
For 15 days full wages = 2000
Total compensation = 22000 + 3000 + 2000 = 27000
ARBITRATION (ARBITRATOR) Sec. 10-A

Arbitration is a voluntary method of resolving industrial conflicts by referring the

disputes to arbitration.
Sec.10-A says that at any time before a reference of dispute under Sec.10, the
disputants may by a written agreement refer the disputes to arbitration. The parties
may specify their own arbitrator, or may select a Board of Arbitrators with an impartial
Chairman as its head.
If the parties choose even number of arbitrators then an umpire must be appointed
and if there is difference between the arbitrators, then the opinion of the umpire will
prevail.

REQUIREMENTS FOR ARBITRATION:

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1. There should be an existing or apprehended industrial dispute.
2. The reference of arbitration should be by way of written agreement.
3. The reference should be made before the dispute has been referred under section
10.
4. Reference to arbitration must be done before the dispute has been referred to a
Labour Court or Industrial Tribunal or National Tribunal.
5. The names of the person or persons to act as arbitrator or arbitrators must be
specified in the arbitration agreement.
6. The arbitration agreement should be in the prescribed form and signed by parties
to it in the prescribed manner.
7. A copy of the arbitration agreement shall be "sent to the appropriate Government
and the Conciliation Officer.

FORM OF AGREEMENT:
1. The arbitration agreement should be in the prescribed form and signed by the
parties.
2. A copy of the arbitration agreement is sent to the appropriate Government and the
Conciliation officer.
3. Within one month from the date of receipt of such copy, the appropriate
Government shall publish the same in the official Gazette.

AWARD:
The arbitrator or arbitrators shall investigate the dispute and submit to the
appropriate Government, the arbitration award signed by a single arbitrator or all the
arbitrators.
The award is signed by the single arbitrator or all the arbitrators. The procedural
formalities in respect of voluntary arbitration agreements are laid down in Part II of
the Industrial Disputes (Central) Rules, 1957.

PROHIBITION OF STRIKE OR LOCK OUT:

If an industrial dispute has been referred to arbitration and in furtherance notification
has been issued, then the appropriate Government may prohibit the continuance of
any strike or lock out.

DUTIES OF THE ARBITRATOR:

1. He must give fair hearing to both the parties.

2. He must give due notice of procedure to be followed by both the parties.
3. The parties must be free to give evidence on which they rely upon.
4. The arbitration must take evidence in the presence of both the parties.

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5. He must not depend upon any document presented by a party, unless it is shown
to the other party.
6. The arbitrator acting under section 10-A has the status of a Statutory tribunal.
7. There is an implied statutory obligation on the arbitrator to give his reasons in
support of the conclusions of fact and law reached by him in the award.
8. The arbitrator is not expected to write a lengthy judgment like a Court, but he
must briefly indicate the working of his mind, i.e., the process of reasoning which
leads him to decide the dispute referred in the way he does by the award.
9. Failure to give reasons when it is obligatory to do so constitutes an error of law
apparent on the face of the record.

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 UNIT - IV

THE WORKMEN'S (EMPLOYEES’ )COMPENSATION ACT 1923

1. Social insurance is necessary to provide adequate compensation for

injuries/death caused to the workman due to industrial accidents. The workmen's
Compensation Act was passed in 1923 with a view to fulfill the above objective.
2. The object of the Act was to make provision for payment of compensation by
employers to their workmen for injury by accident.
3. The main object of the Act is to provide compensation to a workman only in case
of injuries and to his dependants in the case of his death.
4. The Act affords protection to a workman even if the accident has been caused by
some negligent act of the employee or employer.
5. Under the Act, the payment of compensation by employer to workmen is made
obligatory.

‘DEPENDENT' UNDER THE WORKMEN'S COMPENSATION ACT

[PERSONS ENTITLED TO THE BENEFITS UNDER THE ACT] [Sec. 2 (d)]

Sec.2 (1) (d) defines the term `dependent' and gives a list of persons who are
dependents. Usually a dependent is a person who depends upon another for
livelihood. The dependents are alone entitled to get compensation fort the accidental
death of the workmen in the course of and out of employment.

According to Sec.2 (1)(d), there are three categories of dependents:

1. Relations who are dependent whether they are actually dependant or not.
E.g.: (i) Widow (ii)Minor legitimate son
(iii) Unmarried legitimate daughter or (iv) a widowed mother.

a. Even after remarriage, a widow is considered dependent and in the same way, a
widowed mother after re-marriage is considered as dependent.
b. Unmarried daughter includes a widowed daughter who is being maintained by
her father during his life time.
c. Relations who are dependents if they are wholly dependent on the earnings of
the workman at the time of his death.

2. Relations who are dependents if they are wholly or partly dependent on the
workman at the time of his death -

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 a. Widower.
b. A parent other than widowed mother.
c. A minor illegitimate son, an unmarried illegitimate daughter.
d. A minor brother or minor unmarried or widowed sister.
e. A widowed daughter in law.
f. A minor child of a predeceased son.
g. A minor child of a predeceased daughter where no parent of the child is alive.
h. A paternal grand parent, if no parent of the workman is alive.

3. The father of an infant workman is a dependent, if he can establish that he is really

dependent on the earning of the infant wholly or partly.
4. An illegitimate child due to adultery is dependent if supported, by putative [step]
father.
5. Dependency on the deceased workman depends upon the fact that he fits in within
the definition of the term `dependent' under Sec. 2 (1). (d).

PARTIAL DISABLEMENT [Sec. 2 (g)] and TOTAL DISABLEMENTS [Sec. 2 (1)]

DISABLEMENT:
Disablement is the loss of the earning capacity resulting from injury caused to a
workman by an accident.

Disablement can be classified into two types

(a) Partial disablement and (b) Total disablement.

A. PARTIAL DISABLEMENT:
Partial disablement is a disablement which reduces the earning capacity of a
workman in any employment or in every employment.

The above partial disablement is further-classified into:

i. Permanent partial disablement
ii. Temporary partial disablement

I. PERMANENT PARTIAL DISABLEMENT:

Partial disablement is a disablement which reduces the earning capacity of a
workman in every employment.

1. Partial disablement must be of a permanent nature.

2. The disablement must reduce the earning capacity of an employee.
3. Reduction of earning capacity must be in every employment which he was
capable of undertaking at the time of the accident resulting in the disablement.

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For e.g.: If a person losses only one finger i.e., the small finger in one hand
permanently by amputation, then it is a permanent partial disablement, because it
reduces the earning capacity of a workman in every employment.

Even if an injury to a workman caused by an accident did not reduce his capacity to
work, but if the injury has stamped him incapacitated for every work in the sense that
his earning capacity would be fully destroyed to make it as permanent total
disablement.

II. TEMPORARY PARTIAL DISABLEMENT:

Temporary partial disablement is a disablement which reduces the earning capacity of
a workman in relation to the employment which he had been doing at the time of the
accident.
The test to find out whether it was a permanent partial disablement or temporary
partial disablement depends on the reduction in earning capacity of a workman from
every employment which he was capable of undertaking at the time of accident.

B. TOTAL DISABLEMENT:
Total disablement is a disablement when it incapacitates a worker for all work he was
capable of doing at the time of the accident resulting in such disablement.
For e.g.: If a person losses all the ten fingers in both the hands, then it is total
disablement, since incapacitates a worker for all work he was capable of doing at the
time of the accident.

The above total disablement is further classified into:

i. Permanent total disablement
ii. Temporary total disablement

I. PERMANENT TOTAL DISABLEMENT:

Permanent total disablement is a disablement which results from every injury
specified in Part I of Schedule I. It may also result from any combination of injuries in
Part II of Schedule I, where the total percentage of the loss of earning capacity, as
specified against those injuries amounts to 100% or more.

The following are the essentials -

1. The disablement resulting from injury must be permanent; and

2. The disablement must be of such a nature as renders the workman incapable for
all work which he was capable of performing at the time of accident resulting in
such disablement; and

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3. Every injury specified in Part I of Schedule II is deemed to result in permanent total
disablement; and
4. It is also deemed to result from any combination of injuries specified in Part II of
Second Schedule where the aggregate (total) percentage of the loss of earning
capacity, as specified against those injuries, amounts to 100% or more.
For e.g.: If a person loses all the ten fingers in both the hands permanently by
amputation, then it is a permanent total disablement, because it renders the workman
incapable for all work which he was capable of performing at the time of accident
resulting in such disablement.

TEMPORARY TOTAL DISABLEMENT:

Temporary total disablement is a disablement which incapacitates a workman for all

work which he was capable of performing at the time of the accident resulting in such
disablement.

For e.g.: If a person sustains bleeding injuries in all the ten fingers in both the hands
for a temporary period of ten days (after which the injuries get cured), then during the
period of bleeding injuries, it is a temporary total disablement because it
incapacitates a workman for all work which he was capable of performing at the time
of the accident.

EMPLOYER'S LIABILITY FOR COMPENSATION

(NOTIONAL EXTENTION THEORY)
(ACCIDENTS ARISING OUT OF AND IN THE COURSE OF EMPLOYMENT)

An employer is liable to pay compensation to a workman for personal injury caused to

him by accident as well as for any occupational disease contracted by him.

PERSONAL INJURY BY ACCIDENT:

An employer is liable to pay compensation to a workman for personal injury caused to
him by accident arising out of and in the course of his employment.

The following conditions must be fulfilled to make an employer liable to pay

compensation to a workman:

1. Personal injury must have been caused to a workman.

2. Such injury must have been caused by an accident.
3. The accident must have arisen out of and in the course of employment.
4. The injury must have resulted either in the death of the, workman or in his total or
partial disablement for a period exceeding three days.
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The employer is not liable to pay compensation in the following cases:

1. If the injury did not result in total or partial disablement of the workman for a
period exceeding three days.
2. If any injury does not result in death or permanent total disablement, then the
employer can plead:
a. That the workman was at the time of accident under the influence of drinks or
drugs.
b. That the workman willfully disobeyed an order expressly given or a rule
expressly framed for the purpose of securing safety of workmen, and
c. That the workman knowing that certain safety guards or safety devices
specifically provided for the purpose of securing his safety, willfully
disregarded or removed such safety guards or safety devices.
d. Mere death in ordinary course by some bodily disease or ailment does not
constitute personal injury by accident.
ARISING OUT OF AND IN THE COURSE OF EMPLOYMENT:

The employer is liable to pay compensation only if personal injury is caused to a

workman by an accident arising out of and in the course of his employment. It is not
enough that the injury arises in the course of employment. It must also arise out of
employment.

Thus where a worker lost his mental balance as a result of an injury by accident and
committed suicide, it was held that the accident arose out of employment.

IN THE COURSE OF EMPLOYMENT:

It suggests the duration of employment. The workmen, at the time of accident, must
be in the process of doing something in discharge of his duty.
The test to find out whether an employee is in the course of employment is that the
employee must show that he was at the time of the accident engaged in employer’s
business or in furthering his business and was not doing something for his own
benefit / welfare.

Chairman, Madras Port Trust Vs. Kamala:

An employee was asked to fetch food for the employer. While employee went out to
fetch the food, he met with an accident and died. The employer contended that the
accident took place outside the course of employment.
But the Court held that an accident to an employee while fetching food is in the
course of employment and hence the employer was liable to pay compensation to the
legal heirs of the deceased.
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OUT OF EMPLOYMENT:

1. An accident arising out of employment implies a casual connection between the

accident and the employment.
2. The workman should be doing something in discharge of his duties to the
employer either directly or indirectly.
3. The term `employment' has a wider meaning than the term 'work'. It means that a
workman is in the course of his employment when he is actually engaged in doing
something in the discharge of his duties to his employer and also when he is
engaged in an act arising out of it.

In order to prove that injury arose `out of employment' two conditions must be
fulfilled:
i. Injury must have resulted from some risk incidental to the duties of the service
and inherent in the nature or condition of employment.
ii. At the time of injury, the worker must have been engaged in the business of the
employer and must not be doing something for his personal advantage or benefit.

OCCUPATIONAL DISEASES:
Usually workers employed in certain occupations are exposed to certain diseases
which are normal in those occupations.
E.g.: A person working in any process involving use of Lead Tetra Ethyl is liable to
get poisoning. Such diseases are called occupational diseases.

If the employer is also responsible for the death of a workman, then the death is
deemed to have arisen out of employment.

Mackinam Mackenzie Vs. Rita Fernandes:

A workman while working in a shop died. He was a heart patient and died of cardiac
failure. His wife claimed and got compensation.
It was held that it was an accident arising out of and in the course of employment.
Lists of occupational diseases are specified in part A, B and C of Schedule III of the
Workmen's Compensation Act.

A workman is entitled to receive compensation from the employer, if he gets an

occupational disease even after discontinuation from service under the following
conditions.
a. If he had contracted an Occupational disease peculiar to that employment.
b. If the workman has served the employer for a continuous period of 6 months.
c. Such disease must have arisen out of thee employment.
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 OBJECT AND APPLICATION OF THE EMPLOYEES’ STATE INSURANCE ACT - 1948

The Employees' State Insurance Act provides for social insurance to the labourers. It
provides measures for compulsory - sickness, maternity and employment injury
benefits for workers in factories.
The aim of the Act is to establish social and economic justice to the poor. Labour
welfare activities are extended to workers of every factory, industry, mines, plants and
communication, etc.

APPLICATION AND SCOPE OF THE E.S.I. ACT:

1. The Act extends to the whole of India. Different provisions of the Act may be
extended to any other establishment either by the Central or State Government in
consultation with one another, after giving 6 months notice.
2. It extends to co-operative society whose workers are shareholders of the society.
Any co-operative society employing its members for wage in a manufacturing
process is also covered.
3. The Act does not apply to any factory belonging to Central Government or under
the control of the Government where employee receives better benefit than under
E.S.I.
4. If any of the provisions of the Act are brought into force in any part of a State, then
they are also extended to other establishments in another part of the State.
5. The extension of the E.S.I. Act does not depend upon the number of persons
employed in any factory.
6. The Act extends to any shop engaged in sale of goods or service rendered. E.g.
Tailoring shop also comes under the Act.
7. Seasonal factories are excluded from the purview of the Act. The factory must be
engaged exclusively in 1. Cotton ginning. 2. Cotton or jute processing.
8. Persons employed by contractors are entitled to the benefit of the Act.

ESTABLISHMENT OF EMPLOYEES STATE INSURANCE CORPORATION,

STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL
(Sec. 3 to 25)

EMPLOYEES' STATE INSURANCE CORPORATION: (Sec. 3)

This Corporation is established by the Central Government by notification in the
official gazette and it administers the scheme of Employee's State Insurance
according to the provisions of the Act.

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WORKING AND POWERS OF THE CORPORATION, STANDING COMMITTEE AND
MEDICAL BENEFIT COUNCIL:

1. The Standing Committee has the power to administer the affairs of the
Corporation. It submits any case for consideration and decision to the
Corporation.
2. The Corporation promotes measures for improvement of health and welfare
rehabilitation and reemployment of insured persons who are disabled or injured.
3. The Corporation and the Standing Committee seek the advice of the Medical
Benefit Council in matters relating to the administration of medical benefit, etc.
4. Any act by the Corporation, Standing Committee or the Medical Benefit Council is
not invalid only due to defects like irregularity in election, or appointment of any
member, due to any disqualification, or defect in constitution of the Corporation,
Standing Committee or the Medical Benefit Council.

MEDICAL BENEFIT COUNCIL: (Sec. 10)

The Central Government constitutes the Medical Benefit Council.
The members of the Council are -
1. Ex-officio Chairman shall be Director General (Health -service)
2. Medical Commissioner of the Corporation shall be ex-officio member of the
Council.
3. The following persons are appointed by the Central Government:
i. Deputy Director General, health Services.
ii. Three members representing Employers being appointed in consultation with
organisation of employers.
iii. Three members representing Employees appointed in consultation with
organisation of employees.
iv. Three members (one woman) representing medical profession appointed in
consultation with organisation of medical practitioners.
4. The State Government appoints one representative from every State other than the
Union Territories.
5. The members of the Corporation Standing Committee and Medical Benefit Council
cease to be members if they fail to attend three consecutive meetings. (Sec. 12)
6. Any person of unsound mind or insolvent or person having direct or indirect
interest in the contract with the Corporation or a person convicted for moral
turpitude cannot be qualified as a member. (Sec. 13)

DUTIES OF MEDICAL BENEFIT COUNCIL: (Sec. 22)

The Medical Benefit Council -
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i. Advises the Corporation and the Standing Committee on all matters relating to
the administration of medical benefit, the certification for purposes of the grant of
benefits and other connected matters.
ii. Have prescribed powers and duties of investigation in relation to complaints
against medical practitioners in connection with medical treatment and
attendance.
iii. Performs such other specified duties in connection with medical treatment and
attendance.
PRINCIPAL OFFICERS OF THE CORPORATION: (Sec. 16)
1. A Director General and Financial Commissioner may be appointed by the Central
Government consulting the Corporation.
2. The Director General is the Chief Executive officer of the Corporation.
3. Both of them may be full time officers and undertake only work connected with
their office.

EMPLOYEES' STATE INSURANCE FUND (Sec. 26 to 37)

The Employee's State Insurance Act 1948 provides for the creation of a fund under
Sec. 26 called Employees State Insurance Fund. The fund is used for payment of
benefits to the insured person.
The fund is created from contributions from employees and employers, the insurance
of persons including the Government.

PURPOSES OF USAGE OF FUND MONEY:

The fund money may be used for the following purposes:

1. Payment of benefit and provision of medical treatment and attendance to insured

persons and their families.
2. Payment of fees and allowances to members of the Corporation, Standing
Committee, Medical Benefit Council, etc.
3. Payment of salaries, leave allowances, traveling and compensatory allowances,
gratuities to officers and servants of the Corporation.
4. Establishment and maintenance of hospitals and dispensaries for the benefit of
insured persons and their family members.
5. Payment of contributions to the State Government, local authority or private
body or individual towards the cost of medical treatment and attendance
provided to insured persons and their families.
6. Meeting the expenses of auditing the accounts of the Corporations and the
valuation of its assets and liabilities.

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7. Meeting the cost of expenses in the Insurance Courts set up under the Act.
8. Payment of sums under any contract entered into by the Corporation or duly
authorised officers for the purposes of this Act.
9. Payment of sums under any decree, order or award or any Court or Tribunal
against the Corporation.
10. To meet the expenses and other charges of any Civil or Criminal proceedings.
11. Meeting the expenses for improvement of health of the insured persons and for
the rehabilitation or re-employment of disabled or injured persons.
12. Such other authorised purposes by the Corporation with the previous approval
of the Central Government.

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 UNIT - V

OBJECTS AND SALIENT FEATURES OF

THE MINIMUM WAGES ACT - 1948

The Minimum Wages Act was passed for securing the welfare of the workers, by
fixing the minimum limit of wages in certain employments carried on by or under the
Central Government, railway, mine, oil fields or part or any Corporation and by the
State Governments and for other employments covered by the Schedule of the Act.

The following are the important features of the Minimum Wages Act 1948:

1. Minimum time rate of wages, minimum price rate, guaranteed time rate, over time
rate for different occupations are prescribed in the Act.
2. Minimum wages consist of basic rate of wages and a cost of living allowance or
basic rate of wages with or without the cost of living allowance.
3. As per the Act, wages should be paid in cash.
4. The cost of living, etc are computed by the competent authorities.
5. The Act provides for fixation of number of hours of work per day, weekly holiday,
overtime wages, etc.
6. The Act provides for maintenance of registers and records as prescribed under
the Act.
7. Inspectors and Authorities are appointed for hearing and deciding claims arising
out of payment of wages at less than the minimum rates of wages.
8. Complaints for violations of the provision of the Act and penalties for such
violations are also provided.
9. The minimum wages rates must minimum ensure the physical need of the
worker to keep him just above starvation.
10. It should provide for the bare subsistence of his life and must provide for some
measure of educational, medical requirements and amenities.
WAGES - CONCEPT OF SUBSISTENCE WAGE, MINIMUM WAGE, FAIR WAGE AND
LIVING WAGE

The term `wages' is defined in Sec. 2 (h) of the Minimum Wages Act, 1948. It reads -
Wages' means all remunerations, capable of being expressed in terms of money,
which becomes payable to an employed person for the work done in his employment,
provided the terms of the contract of employment are fulfilled.

CLASSIFICATION OF WAGES:
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Wages are classified into four categories:
1. Subsistence wage2. Minimum wage 3. Fair wage 4. Living wage

SUBSISTENCE WAGE:
The Subsistence theory of wages is also known as the Iron Law of Wages. The wage
that can meet only the bare physical needs of a worker and his family is called
subsistence wage.

MINIMUM WAGE: (NEED BASED MINIMUM WAGE)

Minimum wage is the wage that is able to provide not only for the bare physical needs
but also for preservation of efficiency of worker plus some measure of education,
health and other things.

FAIR WAGE:
Fair wages is an adjustable step that moves up according to the capacity of the
industry to pay, and the prevailing rates of wages in the area of industry.

The wages must be fair, i.e. sufficiently high to provide standard family with, food,
shelter, clothing, medical care and education of children appropriate to the workmen.

LIVING WAGE:
In living wage, workers can maintain the health and decency, a measure of comfort
and some insurance.
The basic `minimum wage' provides bare subsistence and it is at a poverty line level -
a little above the minimum wage is `fair wage' and finally the `living wage' which
comes at a comfort level. It is not possible to demarcate these levels of wage
structure with precision.
OBJECTIVES OF FACTORIES ACT - 1948

The Factories Act was first enacted in 1881 in order to regulate working conditions in
factories. Since then, the Act underwent many amendments and the present Factories
Act 1948 came into force in April 1949.

The main object of the Act is to protect the workers employed in factories against
industrial and occupational risks. The Act imposes upon the owners/ occupiers with
obligations to protect the workers against industrial risks and secure the workers
suitable conditions conducive to protect their health and safety.

FACTORY:
Sec. 2 (m) defines ‘Factory’ as any premises including the precincts thereof
1. Where 10 or more workers are working with the manufacturing process being
carried on with the aid of power.
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2. Where 20 or more workers are working or were working in any day in the
preceding 12 months with the manufacturing process being carried on without the
aid of power.
3. The term `factory' does not include mines, because mines are covered under
Indian Mines Act.
4. Similarly, the mobile unit of armed forces, railway running shed or hotel,
restaurant, etc, dare not `factory'.

ESSENTIAL CONDITIONS TO CONSTITUTE A FACTORY:

The following two conditions must be proved to constitute a factory:

1. There must be a manufacturing process in any part of the premises of

establishment.
2. There must be prescribed number of workers working in any part of the premises
and engaging in any part of manufacturing process.

MANUFACTURING PROCESS: [Sec. 2 (k)]

Manufacturing process' means any process of making, altering, repairing,
ornamenting, finishing, packing, rolling, washing, cleaning, breaking up, demolishing,
treating or adapting any article or substance with a view to its use, sale, transport,
delivery or disposal.
WORKER: [Sec. 2 (1)]

A worker is a person employed directly or through an agency in any manufacturing

process or any other kind of work incidental to or connected with the manufacturing
process.
The following persons have been held to be workers:
i. Persons employed in a kitchen preparing food items.
ii. Persons selling the manufactured articles in a factory (sales representatives).
iii. Watchman of a factory.
iv. Apprentices and trainees.
v. An artist employed for remuneration.
vi. Persons employed in the manufacturing of match sticks.
vii. Persons employed. in the manufacture of cigarettes or beedies.

The following persons have been held not to be workers:

i. Partners working in their business.

ii. Students in a technical institute.
iii. Selling agents- not connected with the manufacturing process.

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iv. Independent contractor or his servants or his coolies under the complete control
of the contractor.

OCCUPIER: [Sec. 2 (n)]

An occupier of a factory is a person who has the ultimate control over the affairs of a
factory. In the case of a firm, a Partner is the occupier and, in case of company, the
Director is the occupier and in the case of factory of Central or State Government, the
Manager is the Occupier.

When the owner of the factory has leased it to another person and if the owner has
been only collecting the rent, then the lessees will be the occupier within the meaning
of Sec. 2 (n) of the Act, as they alone have ultimate control.
DUTIES OF OCCUPIER: (Sec. 7-A)
1. The occupier should provide for the health, safety and welfare of the workers.
2. He should provide for maintenance of plant and systems of work which are safe
for health.
3. Safety should be provided in handling, storage and transport of articles and
substances.
4. For health and safety of all workers, by providing information, instruction, training
and supervision.
5. Maintaining the places of work in safe condition.
6. He should also prepare and reverse the written statement of his general policy
regarding health and safety of the workers.

PROVISIONS RELATING TO WORKING CONDITIONS OF EMPLOYMENT

Sections 11 to 20 of the Act deal with the provisions ensuring the health of the
workers in the conditions under which work is carried on in the factories.

CLEANLINESS: (Sec. 11)

i. Every factory should be kept clean and free from dust arising from any drain.
Accumulation of dirt and refuse should be removed daily by some effective
method.
ii. The floor of every workroom should be cleaned at least once in every week by
washing.
iii. If a floor is liable to become wet in the course of any manufacturing process,
effective means of drainage must be provided.
iv. If they are painted otherwise than with washable water paint or varnish, at least
once in every period of five years.

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v. All doors and window frames and other wooden or metallic framework and
shutters should be kept painted or varnished and the painting or varnishing
should be carried out at least once in every period of five years.
vi. The date on which the processes are carried out must be entered in the prescribed
register.

DISPOSAL OF WASTES AND AFFLUENTS: (Sec. 12)

Effective arrangements must be made in every factory for the disposal of wastes and
affluent due to the manufacturing process carried on therein.

VENTILATION AND TEMPERATURE (Sec. 13)

1. Effective and suitable provisions should be made in every factory for securing and
maintaining in every workroom.
2. Adequate ventilation by the circulation of fresh air.
3. Such a temperature as to secure to worker therein reasonable comfort and prevent
injury to health.

DUST AND FUME: (Sec. 14)

If in a manufacturing process in a factory, dust or impurity is given off, then effective
measures must be taken in the factory for prevention of inhalation of dust in the work
rooms.
ARTIFICIAL HUMIDIFICATION: (Sec.15)
The state Government may make rules prescribing standards of humidification
i. Regulating the methods used for artificially increasing the humidity of the air.
ii. Directing prescribed tests for determining the humidity of the air to be correctly
carried out and recorded.

OVER CROWDING: (Sec.16)

There must not be over crowding in any room of the factory so as to be injurious to
the health of the workers. There must be at least 9.9 cubic meters and 14.2 cubic
meters of space for every worker.

LIGHTING: (Sec. 17)

In every part to the factory, where workers are working are passing, then sufficient
lighting natural or artificial must be provided and maintained.

DRINKING WATER: (Sec. 18)

a. In every factory, effective arrangements must be made to provide and maintain at

suitable points conveniently situated for all the workers employed therein,a sufficient
supply of wholesome drinking water.

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b. All such points must be legibly marked drinking water in a language understood
by a majority of the workers employed in the factory.
c. In every factory, where more than 25 workers are ordinarily employed, provision
should be made for cooling drinking water during hot weather by effective means and
for distribution thereof.

LATRINE AND URINALS (Sec. 19)

In every factory, separate enclosed accommodation of latrine and urinals of
prescribed types of male and female workers must be provided:
1. Such accommodation shall be conveniently situated and accessible to workers at
all times.
2. Sweepers shall also be employed for keeping clean latrines, urinals and wasting
places.
3. The doors and internal walls upto 3 feet height shall be laid in glazed tiles.
4. The sanitary pans of latrines and urinals are washed and cleaned with suitable
detergents once in seven days.

SAFETY (Sec. 21 to 41)

It is obligatory on the part of every occupier of a factory to provide safety measures

necessary to secure the safety of the workers in the factory. The Factories Act
provides the guidelines for the occupier.

The following are the provisions dealing with the safety of the workers:
Fencing of machinery (Sec. 21): In every factory, dangerous parts of any machinery
must be securely fenced- while such parts of the machinery are in motion. If it is not
covered, it is an offence.

In every factory, the following must be securely fenced by safeguards:

a. Every moving part of a prime mover and every fly wheel connected to a prime
mover.
b. Headrace and tailrace of every water wheel and water turbine.
c. Any part of a stock bar which projects beyond the head stock of a lathe, and they
are in safe position and securely fenced.
d. Every part of an electric generator, a motor or rotary converter.
e. Every part of transmission machinery, and
f. Every dangerous part of any other machinery.

1. While the machinery is in motion such examination or operation must be made

only by a specially trained adult male worker wearing tight fitting clothing (which
shall be supplied by the occupier) (Sec.22)
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2. Young persons should not be employed to work at dangerous machines unless
they are fully instructed as to the dangers involved in meddling with the
machine. (Sec.23)
3. Suitable striking gear and other devices to cut of the power and electricity during
emergency must be provided. (Sec.24)
4. All machines driven by power should be efficiently guarded to prevent dangers.
(Sec. 26)
5. For pressing cotton, women or children should not be employed. (Sec. 27)
6. The hoists and lifts must be made of sound materials and should be properly
maintained. Sufficient precautions and safeguards must be also provided In the
case of lifting machines. (Sec. 29)
7. The revolving machines must be fenced to avoid dangers. (Sec. 30) A notice
indicating the speed of the machine should be affixed near it.
8. If any manufacturing process takes place in a machine at a pressure above the
atmospheric pressure, effective measures must be provided for safe working
pressure (Sec. 31)
9. The floors, steps and stair cases must be in a sound condition. (Sec. 32)
10. Hand rails and other safety measures must be provided for stair cases, steps,
etc. Safe means of access to every place of the factory must be provided so that
any worker in danger can be saved. (Sec. 33)
11. The pits opening in fences or floor which by its nature of construction is
dangerous should be securely fenced or covered. (Sec. 34)
12. Persons should not be employed to lift, carry or move any loaded machineries
which are likely to cause injuries.
13. If the manufacturing process in any factory involves risk of injuries to the eyes
by exposure to excessive light, then protection to eyes must be provided in the
form of effective screen or suitable goggle. (Sec. 35)
14. If the manufacturing process involves the emission of dangerous fumes or
gases, then they should be confined in every chamber, tank, or pipes etc, so that
the workers are not exposed to it. (Sec. 36)
15. If the manufacturing process involves the emission of explosives, inflammable
dust, etc., such emission must be prevented at the sources of production.

PRECAUTIONS IN CASE OF FIRE (SEC. 38): EVERY FACTORY MUST BE PROVIDED

WITH MEANS OF ESCAPE IN CASE OF FIRE –

i. The doors of exit from any room should not be locked or fastened. They should be
easily and immediately opened from inside. All the doors should open outwards
except sliding doors.

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ii. In all the factories, exits, in case of fire, should be marked in a language easily
understood by the workers and in letters or some other effective signs.
iii. Provisions should be made so that every person in the factory clearly hears the
warning given in case of fire.
iv. In every room of the factory, free passage way giving access to means of escape
should be maintained.

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