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UPSC EPFO 2025

Labour Laws
APFC & EO/AO
#AspirantToOfficer

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Table of Contents
1. Payment of Wages Act, 1936 ......................................................................................... 03

2. Minimum Wages Act, 1948 ........................................................................................... 13

3. Industrial Employment (Standing Orders) Act, 1946 ..................................................... 22

4. The Trade Unions Act, 1926 ........................................................................................... 30

5. The Factories Act, 1948 ................................................................................................. 41

6. Industrial Disputes Act, 1947 ......................................................................................... 58

7. The Child and Adolescent Labour (Prohibition and Regulation) Act, 1986 .................... 73

8. Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act,

1979 ............................................................................................................................... 82

9. Contract Labour (Regulation and Abolition) Act, 1970 .................................................. 93

10. Payment of Bonus Act, 1965 ......................................................................................... 105

11. Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996 ......................................................................................................... 116

12. The Mines Act, 1952 ..................................................................................................... 130

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Payment of Wages Act, 1936

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1 Introduction
With the growth of industries in India, problems relating to payment of wages
to persons employed in industry took an ugly turn. The industrial units were
not making regular wage payments to their workers, and wages were not
uniform. The industrial workers were forced to raise their heads against their
exploitation.

In 1926, The Government of India wrote to local governments to ascertain

the position with regard to the delays which occurred in the payment of
wages to the persons employed in Industry. Material so collected was placed before the Royal Commission on
Labour which was appointed in 1929. On the report of the Commission, Government of India re-examined the
subject and in February, 1933 the Payment of Wages Bill, 1933, was introduced in the Legislative Assembly
and circulated for the purpose of-eliciting opinions.

A motion for the reference of the Bill to a Select Committee was tabled but the motion could not be passed
and the Bill lapsed. In 1935 the Payment of Wages Bill, based upon the same principles as the earlier Bill of
1933 but thoroughly revised was introduced in the Legislative Assembly on 15th February, 1935. The Bill
was referred to the Select Committee. The Select Committee presented its report on 2nd September, 1935.
Incorporating the recommendations of the Select Committee, the Payment of Wages Bill, 1935 was again
introduced in the Legislative Assembly.

The Payment of Wages Act, 1936, was officially enacted and became effective on April 23, 1936. After its
enactment, it was implemented across various industrial establishments in India to regulate wage payments,
specify the time and manner of wage disbursement, and protect workers from unauthorized deductions.

2 Objective of the Payment of Wages Act 1936

The Payment of Wages Act, 1936, was enacted in India with several key
objectives aimed at regulating the payment of wages to industrial workers
and safeguarding their interests. The primary objectives of the Payment of
Wages Act, 1936, include:
 Timely Payment of Wages: Ensure that wages are paid to workers on
time and at regular intervals, preventing delays or irregularities in wage
disbursement.
 Regulate the payment: Regulation of wages of certain classes of employed persons.
 Fair and Full Payment: Ensure that workers receive their full wages, without unauthorized deductions,
and that they are paid in legal tender (currency notes or coins) rather than in kind, except where expressly
permitted.
 Prevention of Arbitrary Deductions: Prevent employers from making arbitrary or unfair deductions
from workers’ wages, ensuring that only authorized deductions are made, such as those for income tax,
provident fund contributions, or fines imposed as per the law.
 Fixation of Wage Periods: Mandate the fixation of wage periods, which could be daily, weekly, fortnightly,
or monthly, to provide clarity to both employers and workers regarding the timing of wage payments.
 Maintenance of Records: Require employers to maintain accurate and up-to-date records and registers
related to wages, deductions, and other relevant details, which must be open for inspection by labor
inspectors.

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 Transparency: Ensure transparency in wage payments by requiring employers to display a notice at the
workplace containing information about wage rates, wage periods, and other pertinent details for the
benefit of workers.
 Penalties for Violations: Prescribe penalties for violations of the Act, including unauthorized withholding
of wages, illegal deductions, or non-compliance with the Act’s provisions. Penalties can include fines and
imprisonment.
 Access to Redressal: Provide a mechanism for workers to seek redressal in case of disputes or grievances
related to wage payments. The Act allows workers to approach authorities or file complaints to resolve
such issues.
 Applicability: Define the scope and applicability of the Act to various industrial establishments, including
factories, railways, mines, plantations, and other enterprises where a significant number of workers are
employed.
 Promotion of Worker Welfare: Overall, the Act aims to promote the welfare of industrial workers by
ensuring that they receive their wages fairly, on time, and without unnecessary deductions. It helps
prevent exploitation and abuse of workers’ rights related to wages.

The Payment of Wages Act, 1936, plays a crucial role in protecting the interests of workers and promoting
industrial harmony by regulating wage payments and addressing related issues. It is an essential piece of labor
legislation in India that contributes to the well-being of workers and the fairness of employment relationships.

3 Important sections under the Payment of Wages Act 1936 are given below
3.1 Section 1 – Application
 It applies to wage payments for individuals employed.
• In factories,
• On railways by railway administrations, or
• In specified industrial establishments
 It applies to wages payable to an employed person if not exceeding
rupees 24,000 per month.
• The Appropriate Government, after 3 months’ notice, may extend the provisions of this Act to any
establishment.

3.2 Section 2 – Definitions

 “Appropriate Government”
• Means the Central Government for
 Railways
 Air transport services
 Mines
 Oilfields
• State Government for all other cases.
 “Wages” - Means all monetary compensation, including salary, allowances, or any other form, payable
to an employed person for their work, including what’s due under their employment contract, whether
explicitly stated or implied, and includes:
• Remuneration payable under any award or settlement between the parties or order of a Court

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• Remuneration to which the person employed is entitled in respect of overtime work or holidays or any
leave period.
• Additional remuneration payable under the terms of employment (whether called a bonus or by any
other name)
• Any sum payable due to the termination of employment under a law, contract, or instrument,
irrespective of deductions, but without specifying the time for payment.
• Any sum entitled to the employed person under a current legal scheme.
But does not include:
• Any bonus not forming part of the remuneration payable, or which is not payable under any award or
settlement between the parties or order of a Court.
• The value of any household accommodation, or of the supply of light, water, medical attendance or
other amenity or of any service excluded from the computation of wages by a general or special order
of appropriate Government.
• Any contribution paid by the employer to any pension or provident fund, and the interest which may
have accrued thereon.
• Any travelling allowance or the value of any travelling concession.
• Any sum paid to the employed person to defray special expenses entailed on him by the nature of his
employment.
• Any gratuity payable on the termination of employment in cases

Concept Check
Q. The Payment of Wages Act, 1936 applies to wages payable to an employed person if not exceed-
ing by how much amount per month?​
A. 20000​
B. 15000​
C. 25000​
D. 24000​

Ans: D

3.3 Section 3 - Responsibility for payment of wages

 Every employer is responsible for paying all the wages to their employed
persons:
• In case of persons employed
 In factories – Manager
 In industrial or other establishments - a person is responsible for
the supervision and control.
 Upon railways – Railway administration or person nominated.
 In the case of the contractor – Person designated by the contractor.
• Even if a contractor or the designated person fails to make the required payments, the employer
remains responsible for wage payments.

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3.4 Section 4 – Fixation of the wages Wage Period

 The person responsible for the payment of the wages shall The wage period will be the period in
fix periods in respect of which such wages shall be payable. respect of which wages are payable to an
 No wage period shall exceed 1 month. employee for work done or to be done
under his/her contract of employment.

Concept Check
Q. As per the Payment of Wages Act, 1936, no wage period shall exceed:​
A. 15 days​
B. 2 month​
C. 1 month​
D. 3 months

Ans: C

3.5 Section 5 - Time of payment of wages

 The wages of every person employed upon or in:
• In any railway, factory, or industrial or other establishment upon or in
which less than 1000 persons are employed, it shall be mandatory for
wages to be paid before the expiry of the 7th day,
• Any other railway, factory or industrial or other establishment, shall be
paid before the expiry of the 10th day,
after the last day of the wage period in respect of which the wages are payable.
• In the case of dock, wharf, jetty, or mine workers, the remaining wages, determined after completing
tonnage accounts, must be paid within 7 days from the completion day.
 When employment is terminated by the employer, wages earned by the employee must be paid within 2
working days from the termination date.
• Provided that in cases where an establishment is closed for any reason other than a weekly or other
recognized holiday, and employment is terminated, the wages earned by the employee shall be paid
before the expiry of the 2nd day from the day on which his employment is terminated.
 All payments of wages shall be made on a working day.

3.6 Section 6 - Wages to be paid in current coin or currency notes or by cheque or crediting in bank
account
 Wages must be paid in current coin, currency notes, cheque, or by crediting to a bank account.
• The appropriate Government may specify certain establishments where wages can only be paid by
check or bank transfer through an official notification.

3.7 Section 7 - Deductions which may be made from wages

 An employed person must receive their wages without any deductions, except those explicitly permitted
by this Act.
 Any payment made by the employed person to their employer is considered as a deduction from the
employee’s wages.

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 Any loss of wages resulting from the imposition, for good and sufficient
cause, upon a person employed of any of the following penalties, namely:
• The withholding of increment or promotion (including the stoppage of
increment at an efficiency bar);
• The reduction to a lower post or time scale or to a lower stage in a time
scale; or
• Suspension,
■ Shall not be deemed to be a deduction from wages
 Deductions from an employed person’s wages can only occur in accordance with the provisions of this Act
and are limited to the following categories:
• Fines
• Deductions for absence from duty
• Deductions for damage to or loss of goods
• Deductions for house-accommodation
• Deductions for such amenities and services supplied by the employer.
• Deductions for recovery of advances
• Deductions for recovery of loans made from any fund constituted for the welfare of labour.
• Deductions for recovery of loans granted for house-building or other purposes.
• Deductions of income-tax payable by the employed person
• Deductions required to be made by order of a Court or other authority competent to make such order.
• Deductions for subscriptions to, and for repayment of advances from any provident fund
• Deductions can be made from an employed person’s wages with written authorization either from
the employed person themselves or from the president or secretary of their registered trade union.
These deductions are for contributions to the National Defence Fund or an approved Defence Savings
Scheme, as specified by the appropriate government.
• Deductions for payments to co-operative societies to a scheme of insurance maintained by the Indian
Post Office
• Deductions, made with the written authorisation of the person employed for payment of any premium
on his life insurance policy to the Life Insurance Corporation of India or for the purchase of securities of
the Government of India or of any or for being deposited in any Post Office Savings Bank in furtherance
of any savings scheme of any such Government.
• Deductions made, with the written authorisation of the employed person, for the payment of his
contribution to any fund constituted by the employer or a trade union
• Deductions made, with the written authorisation of the employed person, for payment of the fees
payable by him for the membership of any trade union
• Deductions for payment of insurance premia on Fidelity Guarantee Bonds
• Deductions for recovery of losses sustained by a railway administration on account of acceptance by
the employed person of counterfeit or base coins or mutilated or forged currency notes.
• Deductions can be made from an employed person’s wages to recover losses incurred by a railway
administration due to the employee’s failure to handle charges properly, including fares, freight,
demurrage, wharfage, carnage, food sales, or commodity sales.
• Deductions for recovery of losses sustained by the railway administration on account of any rebates
or refunds incorrectly granted by the employed person where such loss is directly attributable to his
neglect or default.
• Deductions made for contribution to the Prime Minister’s National Relief Fund or to such other Fund.
• Deductions for contributions to any insurance scheme framed by the Central Government for the
benefit of its employees.

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Regardless of the Act’s provisions, deductions in any wage period from an employed person’s wages Shall not
exceed:
• 75% of their wages if made for payments to cooperative societies, or
• 50% in other cases.
If deductions surpass these limits, the excess can be recovered as per prescribed methods.

3.8 Section 8 - Fines

 Fines on employees can only be imposed for specific acts or omissions
approved by the employer with consent from the appropriate Government
or prescribed authority.
 A notice listing these acts and omissions must be displayed as prescribed
at the workplace or on railways where employment occurs.
 No fine can be imposed on an employee without giving them an
opportunity to provide a reason or without following the prescribed
procedure for imposing fines.
 The maximum fine that can be imposed on an employee in any wage period is limited to a sum equal to
3% of their wages for that period.
 No fine shall be imposed on any employed person who is under the age of 15 years.
 Fines imposed on an employee cannot be collected in instalments and must be recovered within 90 days
from the date of imposition.
 Each fine is considered to have been imposed on the day of the act or omission for which it was imposed.
 Every fine and its collections must be recorded in a register as prescribed.
 The collected fines can only be used for purposes benefiting the employees in the factory or establishment,
subject to approval by the prescribed authority.

3.9 Section 9 - Deductions for absence from duty

 Deductions are permissible only for the absence of an employee from their designated workplace, as
required by their employment terms, for all or part of the period they are supposed to work.
 The deduction amount must not exceed the proportion of wages for the wage period in which the
deduction is made, which is equivalent to the duration of the absence in relation to the total period the
employee was required to work during that wage period.
 However, unless stated otherwise by rules established by the appropriate Government, if 10 or more
employees collectively absent themselves without proper notice, as required by their employment
contracts, and without valid reasons, the deduction from any such employee may include an amount, not
exceeding 8 days’ wages, as specified in their contracts as compensation to the employer for the lack of
due notice.

3.10 Section 10 - Deductions for damage or loss

 A deduction shall not exceed the amount of the damage or loss caused to the employer due to the
negligence or default of the employee.
 Deductions cannot be made without providing the employed person an opportunity to show cause against
the deduction or following prescribed deduction procedures.
 All deductions and their collections must be recorded in a register maintained by the person responsible
for wage payments.

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3.11 Section 11 - Deductions for services rendered

 Deductions can only be made from an employed person’s wages if they have accepted the house
accommodation, amenity, or service as part of their employment terms or otherwise.
 Such deduction shall not exceed an amount equivalent to the value of the house-accommodation
amenity or service.

3.12 Section 12 - Deductions for recovery of advances

 Deductions are subject to specific conditions:
• Advances given before employment must be recovered from the first payment of wages for a complete
wage period, except for advances related to travel expenses.
• Advances given after employment started are subject to conditions imposed by the appropriate
Government.
• Recovery of advances of wages not yet earned must follow rules set by the appropriate Government
regarding the extent and installment-based recovery.

3.13 Section 13A - Maintenance of registers and records

 Every employer must maintain registers and records containing specific details
about their employees, work performed, wages paid, deductions, receipts, and
other prescribed particulars. These records must be kept for a minimum of 3 years
after the last entry.

3.14 Section 14 - Inspectors

 An Inspector of Factories appointed under the Factories Act, 1948, will also
serve as an Inspector for the purposes of this Act concerning all factories located
within the area assigned to them.
 Inspectors are appointed by the appropriate government.
 An Inspector may:
• make such examination and inquiry to ascertain whether the provisions of
this Act or rules established under it are being adhered to.
• with any necessary assistance, can enter, inspect, and search the premises
of a railway, factory, or industrial establishment at a reasonable time to fulfill
the objectives of this Act.
• oversee the payment of wages to individuals employed on a railway, in a factory, or in an industrial or
other establishment.
• demand, through a written order, the presentation of any register or record maintained under this Act
at a prescribed location.
• obtain statements from individuals, either on the spot or by other means, if deemed necessary to fulfill
the objectives of this Act.
• seize or make copies of registers, documents, or relevant portions if they have reason to believe that
an employer has committed an offence under this Act.
• exercise such other powers as may be prescribed.
 The provisions of the Code of Criminal Procedure, 1973, will apply to any search or seizure carried out
under this.
 Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code.

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3.15 Section 15 - Claims arising out of deductions from wages or delay in payment of wages and penalty
for malicious or vexatious claims
 The appropriate Government may appoint following authorities with
jurisdiction to hear and adjudicate on all claims arising from wage deductions
or delays in wage payments for individuals employed or remunerated in a
designated area, including related matters.
• Any Commissioner for Workmen’s Compensation
• Any officer of the Central Government exercising functions as
 Regional Labour Commissioner or
 Assistant Labour Commissioner with at least 2 years’ experience or
• Any officer of the State Government not below the rank of Assistant Labour Commissioner with at
least 2 years’ experience; or
• A presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes
Act, 1947 or under any corresponding law relating to the investigation and settlement of industrial
disputes in force in the State.
• Any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate.
 In cases where there has been a deduction from an employed person’s wages or a delay in wage payment
in violation of this Act, the following individuals or entities can seek redress by applying to the relevant
authority for a directive:
• Affected employed person
• A legal practitioner representing the employed person.
• An official of a registered trade union, duly authorized in writing to act on behalf of the employed
person.
• An Inspector under this Act.
• Any other person acting with the permission of the authority appointed.
 Applications for redress must be submitted within 12 months from the date when the wage
deduction occurred or when the wage payment was due.
 However, the authority may consider applications filed after this period (within 12 months) if the
applicant can demonstrate sufficient cause for the delay in applying.
 When an application is considered, the authority must provide an opportunity for the applicant and the
employer or responsible party to be heard. After conducting any necessary further inquiry, the authority,
in addition to any other penalties applicable under this Act, may issue the following directives:
• Refund the deducted amount to the employed person.
• Ensure payment of delayed wages.
• Award compensation to the employed person, which should not exceed 10 times the deducted
amount in the former case.
• For delayed wages, the compensation should not exceed 3000 rupees but should not be less than
1500 rupees.
• Even if the deducted amount or delayed wages have been paid before the application’s resolution, the
authority can still order compensation, not exceeding 2000 rupees.
• Claims made under this Act should ideally be resolved within 3 months from the date of registration
of the claim by the authority, as long as it is practically feasible to do so.
• The 3-month period for resolving a claim under this Act may be extended if both parties involved in
the dispute agree to an extension.

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 In cases of delayed wages, the authority will not issue a compensation directive if they are satisfied that
the delay resulted from:
• A genuine error or dispute regarding the amount owed to the employed person.
• An emergency or exceptional circumstances where the person responsible for wage payment, despite
reasonable diligence, was unable to make the payment.
• The failure of the employed person to apply for or accept payment.
 Furthermore, if the authority determines that:
• If the application was malicious or vexatious, he may impose a penalty on the person presenting the
application, not exceeding 375 rupees, to be paid to the employer or responsible party.
• In cases where compensation is ordered the applicant should not have been compelled to seek redress,
the authority may impose a penalty, not exceeding 375 rupees, on the employer or responsible party,
payable to the appropriate government.
 Any amount ordered to be paid under this section can be recovered as follows:
• If the authority is a Magistrate, it will be collected by the authority as if it were a fine imposed by them
in their capacity as a Magistrate.
• If the authority is not a Magistrate, it will be collected by the Magistrate to whom the authority
submits an application for this purpose, treating it as if it were a fine imposed by that Magistrate.

3.16 Section 17 – Appeal

 An appeal against an order either fully or partially dismissing an application or
against a direction, can be filed within 30 days from the date of the order or
direction. (In a Presidency-town, the appeal is made to the Court of Small Causes,
and elsewhere it is made to the District Court.)
• This applies to:
 The employer or the responsible party if the directed payment for wages
and compensation exceeds 300 rupees or imposes a financial liability
exceeding 1000 rupees.
 An employed person or any legal practitioner or any official of a registered trade union authorised
in writing to act on his behalf or any Inspector etc., if the total amount of the wages claimed to
have been withheld from the employed person exceeds Rs 20 or from the unpaid group to which
the employed person belongs exceeds Rs 50.
 Any person directed to pay a penalty.

Concept Check
Q. If 10 or more persons absent without due notice and without reasonable cause, how much maximum
deduction can be made by an employer as per the provisions of the Payment of Wages Act, 1936?​
A. Amount not exceeding his wages for 8 days​
B. Amount not exceeding his wages for 10 days​
C. Amount not exceeding his wages for 15 days​
D. Amount not exceeding his wages for 12 days

Ans: A

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Minimum Wages Act, 1948

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1 History
The concept of minimum wages has a long and evolving history that dates to
the late 19th and early 20th centuries. Here is a brief overview of the history
of minimum wages:

Early Labor Movements:

 The roots of minimum wage laws can be traced back to labor movements
in various countries during the late 19th century.
 Workers’ unions and labor activists advocated for better working conditions, fair wages, and protection
against exploitation.

First Minimum Wage Laws:

 New Zealand was one of the first countries to introduce a minimum wage law in 1894. Australia followed
suit in 1896 with the “Harvester Judgment - 1907,” which established a minimum wage for unskilled
workers.
 These early laws were sector-specific and applied mainly to government employees or workers in specific
industries.

United Kingdom:
 The UK introduced its first Trade Boards Act in 1909, which established minimum wage rates for specific
industries.
 This marked a significant step in formalizing the concept of minimum wages.

United States:
 In the United States, the first federal minimum wage law was the Davis-Bacon Act of 1931, which set
minimum wages for construction workers on federal projects.
 However, the landmark legislation that established a nationwide minimum wage was the Fair Labor
Standards Act (FLSA) of 1938, signed into law by President Franklin D. Roosevelt.
 The FLSA set a minimum wage and established the 40-hour workweek, among other labor standards.

Global Expansion:
 Following World War II, many countries around the world began adopting minimum wage laws as part of
their labor and social welfare policies.
 These laws aimed to ensure that workers received a reasonable wage to cover their basic needs.

Adjustments and Expansions:

 Over the years, minimum wage laws have undergone numerous adjustments and expansions to account
for inflation and changing economic conditions. Some countries tie minimum wage increases to inflation
or the cost of living.

International Labor Standards:

 Organizations like the International Labour Organization (ILO), a United Nations agency, have played a role
in setting international labor standards, including those related to minimum wages.
 The ILO’s conventions and recommendations guide member states on labor policies, including minimum
wages.

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Ongoing Debates:
 Minimum wage laws continue to be a subject of debate and political discussion in many countries.
 Advocates argue that they help reduce poverty and income inequality, while opponents argue that they
can lead to job loss or increased costs for employers.

Regional and Local Variations:

 In some countries, minimum wage laws can vary by region or locality to account for differences in the cost
of living.

The history of minimum wages reflects the ongoing effort to balance the needs of workers for fair wages with
the concerns of employers regarding labor costs and economic competitiveness. It is a complex and evolving
aspect of labor and economic policy that varies significantly from one country to another.

2 Objective of the Minimum Wages 1948

The main objective of the Minimum Wages Act, 1948 is to provide an Act for fixing minimum rates of wages
in certain employments. This objective can be interpreted in various dimensions which are as follows:

 Protection of Workers: The act aims to protect the interests and economic
well-being of workers, especially those engaged in low-paying or vulnerable
occupations.
 Preventing Exploitation: It seeks to prevent the exploitation of labor by
setting a minimum wage that employers must adhere to, ensuring that
workers are paid a reasonable wage for their efforts.
 Ensuring Decent Living Standards: The act strives to establish a minimum standard of living for workers
and their families by ensuring that wages cover the basic needs of food, shelter, clothing, and healthcare.
 Reducing Income Inequality: By providing a wage floor, the act contributes to reducing income inequality
and narrowing the gap between low-wage and higher-wage workers.
 Social Justice: It promotes social justice by ensuring that all workers, regardless of their occupation, receive
a fair wage for their labor.
 Economic Stability: By preventing excessively low wages and addressing labor exploitation, the act
contributes to economic stability and social harmony.
 Consumer Spending: By increasing the income of low-wage workers, the act can stimulate consumer
spending, which, in turn, can boost the overall economy.
 Welfare of Marginalized Workers: It specifically addresses the welfare of marginalized and vulnerable
groups of workers who may be at risk of receiving inadequate compensation.
 Compliance and Enforcement: The act provides a legal framework for the enforcement of minimum wage
standards, ensuring that employers adhere to these standards and that workers can seek redress in cases
of non-compliance.
 Regular Revision: The act allows for the regular revision of minimum wages to keep pace with changes
in the cost of living, economic conditions, and inflation, thus ensuring that the minimum wage remains
relevant over time.

Overall, the Minimum Wages Act of 1948 in India aims to protect the economic interests of workers,
improve their standard of living, and create a fair and just labor environment by setting and enforcing
minimum wage standards.

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Concept Check
Q. The Minimum Wages Act, 1948, was enacted for the purpose of fixing of:
A. Minimum rates of wages in scheduled employments
B. Minimum rates of wages in every employment
C. Minimum wages in industries
D. Living wage

Ans: A

3 Important Provisions
3.1 Section 2 – Important definitions
 “Adolescent” - Person who has completed his 14th year of age but has
not completed his 18th year of age.

 “Adult” - Person who has completed his 18th year of age.

 “Child” - Person who has not completed his 14th year of age.

 “Appropriate Government”
• In the context of scheduled employments conducted by or under the authority of the Central
Government, a railway administration, a mine, an oilfield, a major port, or any corporation established
by a Central Act, the “Appropriate Government” is the Central Government.
• For all other scheduled employments not falling under the aforementioned categories, the “Appropriate
Government” is the State Government.

 “Competent authority” – It refers to an authority appointed by the appropriate Government, as notified

in its Official Gazette, to regularly determine the cost of living index for employees in specified scheduled
employments.

 “Employer” – Any person who employs one or more employees in any scheduled employment in respect
of which minimum rates of wages have been fixed and includes –
• In a factory where there is carried on any scheduled employment – Manager of the factory
• In any scheduled employment under the control of any Government in India – the authority appointed
or the Head of the Department if no authority is appointed
• In any scheduled employment under the control of any local authority – the authority appointed or
the chief executive officer of the local authority if no authority is appointed
• In any other case where there is carried on any scheduled employment – any person responsible to
the owner for the supervision and control of the employees

 “Scheduled employment” – It refers to a type of employment listed in the Schedule, which can also include
specific processes or branches of work related to that employment.

 “Wages” – It encompass all monetary remuneration, expressible in currency, that would be due to an
employee based on the terms of their employment contract, whether explicitly stated or implied. This
includes house rent allowance. However, wages do not cover:
• House-accommodation, supply of light, water, medical attendance.

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• Any other amenity or any service excluded by general or special order of the appropriate Government
• Contributions paid by the employer to Pension Funds, Provident Funds, or social insurance schemes.
• Traveling allowances or the value of traveling concessions.
• Sum paid to defray special expenses entailed on him by the nature of his employment.
• Gratuity payments upon discharge.

 “Employee”
• It refers to any individual hired for compensation to perform work, whether it is skilled or unskilled,
manual or clerical, in a scheduled employment with established minimum wage rates.
• This term also includes out-workers who are given materials or articles by someone else for various
processes related to trade or business. These processes may occur either in the out-worker’s home or
in a location not controlled by the provider of the materials.
• Additionally, an employee can be declared as such by the appropriate Government.
• However, this definition does not cover members of the Armed Forces of the Union.

3.2 Section 3 - Fixing of minimum rates of wages

 The “appropriate Government” is responsible for:
• Fixing minimum wage rates for employees engaged in employments.
• Reviewing the minimum rates of wages so fixed and revise
the same in such intervals not exceeding 5 years.
 If the government has not reviewed and adjusted
minimum wage rates for a specific job category within
5 years then existing rates will remain in effect until the
revision is made.
 The appropriate Government may not fix minimum
rates of wages in respect of any scheduled employment
in which there are in the whole State less than 1000
employees engaged in such employment.

 The appropriate Government may fix:

• A minimum rate of wages for time work (a minimum time rate)
• A minimum rate of wages for piece work (a minimum piece rate)
• A minimum rate of remuneration to apply in the case of employees employed on piece work to secure
to such employees a minimum rate of wages on a time work basis (a guaranteed time rate)
• a minimum rate to apply in respect of overtime work done by employees (Overtime rate)

 In fixing or revising minimum rates of wages:

• Different minimum rates of wages may be fixed for:
 Different scheduled employments
 Different classes of work in the same scheduled employment
 Adults, adolescents, children, and apprentices
 Different localities
• Minimum rates of wages may be fixed by any one or more of the following wage periods
 By the hour

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 By the day
 By the month
 By such other larger wage period

3.3 Section 4 - Minimum rate of wages

 Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled
employments may consist of:
• A basic rate of wages and a special allowance at a rate to be adjusted, to accord with the variation in
the cost of living index number applicable to such workers (cost of living allowance); or
• A basic rate of wages with or without the cost of living allowance, and the cash value of the concessions
in respect of supplies of essential commodities at concessional rates, where so authorized; or
• An all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the
concessions, if any

3.4 Section 5 - Procedure for fixing and revising minimum wages

 In fixing or revising minimum wage rates for a scheduled employment under this Act, the government
shall either:
• Appoint committees and sub-committees as needed
to conduct inquiries and provide advice regarding the
fixation or revision, or
• Publish its proposals in the Official Gazette, giving at least a 2-month notice for the representations
to the persons likely to be affected.
 After reviewing committee advice and public representations received before the specified date, the
government shall officially fix or revise minimum wage rates for each scheduled employment through a
notification in the Official Gazette. Unless stated otherwise, these new rates will take effect on the expiry
of 3 months from the date of the notification.

Concept Check
Q. As per the Minimum Wages Act, 1948, the rates of minimum wages, which are finally notified in
the official gazette come into force after the expiry of which of the following period from the date of
its issue?
A. 6 months
B. 2 months
C. 3 months
D. 1 month

Ans: C

3.5 Section 7 - Advisory Board

 To coordinate the committee’s and sub-committee’s work and offer general advice on fixing and revising
minimum wage rates, the government shall appoint an Advisory Board

3.6 Section 8 - Central Advisory Board

 To advise the Central and State Governments in the matters of the fixation and revision of minimum rates

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of wages and for coordinating the work of the Advisory Boards, the Central Government shall appoint a
Central Advisory Board.
 Composition:
• The Central Advisory Board comprises equal numbers of employer and employee representatives,
along with a maximum of 1/3rd independent members (Nominated by the Central Government)
• An independent person shall be the Chairman of the Board.

3.7 Section 9 - Composition of committees, etc.

 Each of the committees, sub-committees and the Advisory Board shall consist of persons to be nominated
by the appropriate Government. These persons shall represent employers and employees in the scheduled
employments, who shall be equal in number.
 Independent persons, not exceeding 1/3rd of its total number of members, shall also be included.
 One of such independent persons shall be appointed the Chairman by the appropriate Government

3.8 Section 10 - Correction of errors

 The appropriate government can rectify clerical or arithmetic errors or
accidental omissions in wage rate orders through an Official Gazette notification
at any time.
 Each notification must be presented to the Advisory Board for their
information.

3.9 Section 11 - Wages in kind

 Minimum wages payable under this Act shall be paid in cash.
 Where wages have traditionally been paid partly or fully in kind, the appropriate government, if it feels
necessary, can permit the payment of minimum wages either wholly or partially in kind through an
Official Gazette notification.
 If the appropriate government believes there should be a provision for offering essential commodities
at reduced rates, it can do so by issuing an Official Gazette notification to authorize the supply of these
commodities at concession rates.

3.10 Section 13 - Fixing hours for a normal working day, etc.

 For any scheduled employment with established minimum wage rates under this Act, the appropriate
Government has the authority to:
• Fix the number of hours of work.
• Provide for a day of rest in every period of 7 days and for the payment of remuneration in respect of
such day of rest.
• Provide payment for work on a day of rest at a rate not less than the overtime rate.

3.11 Section 14 - Overtime

 If an employee, whose minimum rate of wages is fixed hourly, daily, or as by such longer period, works
beyond the normal hours in a day, the employer shall pay him for every hour or part of an hour so worked
in excess at the overtime rate fixed under this Act or any law of the appropriate Government for the time
being in force, whichever is higher.

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3.12 Section 15 - Wages of worker who works for less than normal working day
 If an employee, whose minimum rate of wages has been fixed, works less than the requisite number of
hours constituting a normal working day, he shall be entitled to receive wages in respect of work done by
him on that day as if he had worked for a full normal working day.
 He shall not be entitled to receive wages for a full normal working day:
 When the employee’s reluctance to work, and not the employer’s failure to offer work, results in
the absence of work.
 In such other cases and circumstances as may be prescribed.

3.13 Section 16 - Wages for two or more classes of work

 Where an employee does two or more classes of work to each of which a different minimum rate of wages
is applicable, the employer shall pay to such employee wages at not less than the minimum rate in force
in respect of each such class

3.14 Section 17 - Minimum time rate wages for piece work

 Where an employee is employed on piece work for which minimum time rate and not a minimum piece
rate has been fixed, the employer shall pay to such employee wages at not less than the minimum time
rate.

3.15 Section 19 - Inspectors

 The appropriate government can appoint inspectors for this Act by issuing an Official Gazette notification
and specify their geographical jurisdiction for carrying out their duties.
 An Inspector may,
• Within his designated area and subject to relevant rules, enter workplaces during reasonable hours
with chosen assistants, which may include government or public authority personnel for inspecting
records, wage details, and necessary notices mandated by this Act or related rules in scheduled
employments with established minimum wage rates.
• Inspect any person in such premises or place if they are believed to be an employee or receive work
there.
• Request information from those providing out-work and out-workers regarding names, addresses, and
payment details for the work.
• Seize or take copies of such registers or documents or portions which he may consider relevant
• Exercise such other powers as may be prescribed.
 Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code, 1860.

3.16 Section 20 - Claims

 The appropriate government may appoint an authority, such as a Commissioner for Workmen’s
Compensation, Labor Commissioner, or other officer with experience as a Civil Court Judge or Stipendiary
Magistrate, to hear and decide claims arising out of payment of less than the minimum rates of wages or
remuneration for rest days, work on rest days, or overtime wages in a specified area.
 An employee, their legal representative, a registered trade union official with written authorization, an
Inspector, or a person authorized with the permission of the Authority can apply for direction in case of a
claim.
• Such applications must be filed within 6 months from the date on which the minimum wages or other
amount became payable.

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• However, an application may be accepted after 6 months if the applicant can show a valid reason for
the delay.
 When an application is accepted, the Authority will hold a hearing involving the applicant and the
employer, conducting any required additional inquiry, and may issue directives, alongside any other
penalties applicable under this Act.
• For claims related to wages below the minimum rate, the Authority can order payment of the amount
by which minimum wages payable to him exceed the amount actually paid and compensation not
exceeding ten times the amount of such excess.
• In other cases, the Authority can order payment of the due amount to the employee, along with
compensation, not exceeding 10 rupees. The Authority can also direct compensation if the employer
pays the excess amount before the disposal of the application’s resolution.
 If the Authority deems an application malicious or vexatious, it can order the applicant to pay a penalty
of up to 50 rupees to the employer.
 Any amount directed to be paid under this section may be recovered:
• If the Authority is a Magistrate, (The penalty may be treated as if it were a fine imposed by the
Magistrate)
• If the Authority is not a Magistrate, any Magistrate to whom the Authority applies can recover the
directed payment as if it were a fine imposed by that Magistrate.
 Every direction of the Authority under this section shall be final.
 Each Authority appointed has the powers of a Civil Court under the Code of Civil Procedure, 1908,
including evidence collection, witness attendance, and document production.

Concept Check
Q. Review of the minimum wage rates fixed under the Minimum Wages Act, 1948, should NOT exceed:
A. 7 years
B. 5 years
C. 3 years
D. 2 years

Ans: B

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Industrial Employment (Standing

Orders) Act, 1946

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1 History of Industrial Employment

The history of industrial employment is closely intertwined with the broader
history of industrialization, which has significantly transformed societies,
economies, and the nature of work over the past few centuries. Here is a
simplified overview of the history of industrial employment:

Pre-Industrial Era (Before the 18th Century)

 Prior to the industrial revolution, most people worked in agrarian societies, engaged in farming and cottage
industries.
 Craftsmen and artisans produced goods on a small scale, often in their homes or small workshops, with a
focus on craftsmanship and manual skills.
 There was little mechanization, and work was largely labor-intensive.

Industrial Revolution (Late 18th to Early 19th Century)

 The Industrial Revolution, which began in Britain in the late 18th century, marked a significant shift in
industrial employment.
 Innovations such as the steam engine, mechanized textile production, and the factory system revolutionized
industries like textiles, coal mining, and manufacturing.
 Factories emerged as centralized production centers, leading to a concentration of industrial employment
in urban areas.
 Mass production methods and the division of labor became more common, leading to increased
employment opportunities in factories.

19th Century
 The Industrial Revolution continued to spread to other countries in Europe and North America during the
19th century.
 Industrial employment expanded across a wide range of industries, including steel, railways, and
shipbuilding.
 Labor movements emerged as workers sought better working conditions, wages, and rights.

20th Century
 The 20th century saw further advancements in industrialization, particularly with the rise of the automobile
industry, aerospace, and electronics.
 The two World Wars had a significant impact on industrial employment, with the demand for manufacturing
and war-related industries leading to increased employment.
 Labor unions became powerful advocates for workers’ rights and job security.
 Automation and technological advancements began to impact industrial employment, with machines
taking over many repetitive tasks.

Late 20th Century and Beyond

 The latter half of the 20th century saw significant changes in industrial employment patterns in many
developed countries.
 Deindustrialization occurred as manufacturing jobs declined due to automation and the outsourcing of
labor-intensive tasks to lower-wage countries.

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 Service industries, such as finance, healthcare, and technology, began to dominate employment in many
economies.
 Some regions experienced the revitalization of industrial employment through the growth of high-tech
industries and advanced manufacturing.

Globalization
 In recent decades, globalization has reshaped industrial employment. Companies have sought cost
advantages by moving production facilities to countries with lower labor costs.
 This has led to the outsourcing of manufacturing jobs, particularly in labor-intensive industries, to countries
in Asia and other regions.

Challenges and Trends

 The gig economy, characterized by short-term and freelance work, has become a prominent feature of
industrial employment in the 21st century.
 Concerns about job security, wage inequality, and the impact of automation continue to shape the
landscape of industrial employment.

The history of industrial employment is a complex and evolving narrative, reflecting the interplay of
technological advancements, economic shifts, social changes, and labor movements. It has led to both
significant economic growth and numerous challenges for workers and societies throughout history.

2 Objective of the Industrial Employment (Standing Orders) Act, 1946

The Industrial Employment (Standing Orders) Act, 1946, is a labor law
that primarily deals with the conditions of employment in industrial
establishments. The main objective of this Act is to require employers in
industrial establishments formally to define conditions of employment
under them and to make the said conditions known to workmen employed
by them. Here are the specific objectives and key provisions of the Industrial
Employment (Standing Orders) Act, of 1946

 Defining Employment Conditions: One of the primary objectives of this act is to define and standardize
the conditions of employment in industrial establishments. This includes specifying working hours, leave
policies, termination procedures, and other terms of employment.
 Promoting Industrial Peace: By establishing clear and uniform rules for employment, the act aims
to promote industrial peace and harmony by reducing disputes and conflicts between employers and
employees.
 Protecting Worker Rights: It seeks to protect the rights of workers by ensuring that they are aware of their
terms of employment and that these terms are fair and just.
 Preventing Arbitrariness: The act aims to prevent arbitrary and unfair treatment of workers by employers
by requiring that standing orders (rules and regulations governing employment conditions) be certified by
appropriate authorities.
 Facilitating Collective Bargaining: It facilitates collective bargaining between employers and workers by
providing a standardized framework that both parties can reference during negotiations.
 Providing Legal Framework: It provides a legal framework for employers to establish standing orders and
for workers to understand their employment conditions, which helps in maintaining discipline and order

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in industrial establishments.
 Ensuring Fairness: The act ensures that the standing orders are not biased or prejudiced against any group
of workers and that they are applied uniformly to all employees.
 Enabling Enforcement: It enables authorities to enforce the certified standing orders, and violations can
lead to penalties for employers.
 Promoting Uniformity: By mandating that industrial establishments with a certain number of employees
(usually 100 or more) must have certified standing orders, the act promotes uniformity in employment
conditions across industries.
 Adapting to Changing Needs: The act allows for amendments to standing orders to accommodate changing
needs and circumstances, as long as such amendments are approved by the appropriate authorities.

In summary, the Industrial Employment (Standing Orders) Act, 1946, serves to regulate and standardize
employment conditions in industrial establishments in India. Its objectives include protecting worker rights,
promoting industrial peace, and preventing arbitrary employment practices. The act provides a legal framework
for defining and enforcing employment conditions, and it applies to industrial establishments with a certain
minimum number of employees.

3 Important Provisions
3.1 Section 1 - Extent and Application
 It applies to the whole of India.
 It applies to all industrial establishments where 100 or more workmen are employed or were employed
on any day during the preceding 12 months.
 The appropriate Government may extend the provisions of this Act to industrial establishments employing
a number of persons less than 100 after providing not less than 2 months’ notice.

3.2 Section 2 - Important Definitions

 “Appropriate Government”- It refers to the Central Government for industrial establishments under its
control (including railways, major ports, mines, and oil fields), and for all other cases, it refers to the State
Government.
• If there is a dispute regarding whether an industrial establishment falls under the control of the Central
Government, the Central Government can make a final decision after considering input from the
concerned parties.

 “Certifying Officer” – It is a designated official, typically a Labor Commissioner or Regional Labor

Commissioner, who can also be appointed by the appropriate Government to carry out specific functions
under this Act.

 “Employer” – It refers to the owner of an industrial establishment covered by this Act. It also includes:
• In a factory, the person designated as the factory manager under the Factories Act, 1948.
• In an industrial establishment under the control of the Government of India, the authority appointed
by that government or, if no authority is appointed, the head of the department.
• In any other industrial establishment, any person responsible for supervising and controlling the
establishment on behalf of the owner.

 “Industrial establishment” - the term “industrial establishment” encompasses:

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• An industrial establishment as defined in the Payment of Wages Act, 1936

• A factory as defined in the Factories Act, 1948
• A railway as defined in the Indian Railway Act, 1890
• The establishment of a person who employs workmen to fulfil a contract with the owner of any
industrial establishment.

 “Standing orders” - means rules relating to matters set out in the Schedule.

THE SCHEDULE
Matters to be Provided in Standing Order Under this Act
1. Classification of workmen (permanent, temporary, apprentices, probationers, or badlis).
2. Communication of work hours, holidays, paydays, and wage rates to workmen.
3. Guidelines for shift work.
4. Rules regarding attendance and late arrivals.
5. Procedures for requesting and granting leave and holidays.
6. Rules for entering premises through specific gates and provisions for searches.
7. Procedures for closing sections of the establishment, temporary work stoppages, and associated
rights and liabilities of both employer and workmen.
8. Termination of employment and notice requirements from both employer and workmen.
9. Suspension or dismissal due to misconduct and defining what constitutes misconduct.
10. Mechanisms for workmen to seek redress for unfair treatment or wrongful actions by the
employer or their representatives.
11. Any other matter prescribed by the law.

3.3 Section 3 - Submission of Draft Standing Orders

 Submission Timeline - Within 6 months of this Act becoming applicable to an
industrial establishment, the employer must provide the Certifying Officer with 5
copies of the proposed draft standing orders for adoption in his establishment.
 Inclusion of Matters - The draft must cover all matters listed in the Schedule, which
may be applicable to the industrial establishment and if Model standing orders are
provided, they should conform as closely as possible to these Model orders.
 Accompanying Statement - Along with the draft, a statement containing prescribed details of the employed
workmen, including their trade union affiliation, if any, must be submitted.

3.4 Section 4 - Conditions for Certification of Standing Orders

 Standing orders are eligible for certification under this Act if they meet two criteria:
• They must include provisions for all matters listed in the applicable Schedule.
• They must comply with the other provisions of this Act.
 The Certifying Officer or appellate authority is responsible for evaluating the fairness and
reasonableness of these standing orders.

3.5 Section 5 - Certification of Standing Orders

 Draft Review and Notification: The Certifying Officer receives the draft standing orders. He shall send a
copy of it to the workmen’s trade union, if one exists, or directly to the workmen if there is no trade union,

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in the prescribed manner. A notice is also sent, requesting objections, if any, within 15 days.
 Hearing and Decision: After allowing the employer and the trade union (or other representatives as
prescribed) an opportunity to be heard, the Certifying Officer assesses whether any modifications or
additions are needed to make the draft certifiable under this Act. He shall issue a written order accordingly.
 Certification: The Certifying Officer shall thereupon certify the draft standing orders and shall within 7
days thereafter send copies of the certified standing orders to the employer and the trade union or other
representatives of the workmen.

3.6 Section 6 - Appeals

 Appeal Process: Any employer, workmen, trade union, or other prescribed
representatives of the workmen who are aggrieved with the Certifying
Officer’s order can file an appeal.
 Time Limit: The appeal must be filed within 30 days from the date when
copies are sent.
 Appellate Authority: The appellate authority, whose decision is final, can
either confirm the standing orders as certified by the Certifying Officer or
amend them by making necessary modifications or additions to ensure they are certifiable under this Act.
 Notification: The appellate authority must send copies within 7 days of its order to the Certifying Officer,
employer, and trade union or prescribed workmen’s representatives.

3.7 Section 7 - Date of Operation of Standing Orders

 Standing orders shall come into operation on the expiry of 30 days from the date on which authenticated
copies are sent by the Certifying Officer to the employer and to the trade union or other representatives
of the workmen.
 Where an appeal is made to the Appellate Authority, Standing Orders shall come into operation on
the expiry of 7 days from the date on which copies of the order of the appellate authority are sent by
the appellate authority to the Certifying Officer, employer, trade union or other representatives of the
workmen.

3.8 Section 8 - Register of Standing Orders

 The Certifying Officer shall file certified standing orders in a prescribed register and provide a copy to
anyone upon request, with the applicable fee.

3.9 Section 9 - Posting of Standing Orders

 Employers must prominently display certified standing orders in English and in the language understood
by the majority of his workmen near the entrance through which the majority of the workmen enter the
industrial establishment and, in all departments, thereof where the workmen are employed.

3.10 Section 10 - Duration and Modification of Standing Orders

 Standing Order finally certified shall not be liable to modification except on agreement between the
employer and the workmen or a trade union or other representative body of the workmen.
 Standing Order finally certified shall not be liable to modification until the expiry of 6 months from the
date on which the standing orders or the last modifications thereof came into operation.
• The provisions related to modification shall apply except in industrial establishments under the
governments of Gujarat or Maharashtra.

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Concept Check
Q. As per the Industrial Employment (Standing Orders) Act, 1946, Standing Order finally certified shall
not be liable to modification until the expiry what period from the date on which the standing orders
or the last modifications thereof came into operation?
A. 6 months
B. 3 months
C. 2 months
D. 1 month

Ans: A

3.11 Section 10A - Payment of Subsistence Allowance

 Where any workman is suspended by the employer pending investigation of misconduct against him, the
employer shall pay to such workman subsistence allowance:
• 50% of the workman’s preceding wages for the first 90 days of suspension.
• 75% of such wages for the remaining suspension period if the delay in disciplinary proceedings is not
due to the workman’s fault.

If there is a dispute regarding the subsistence allowance, either party can refer it to a Labor Court constituted
under the Industrial Disputes Act, 1947. If any other law in a state provides a more beneficial subsistence
allowance, that law shall apply in the place of this section.

3.12 Section 11 - Certifying Officers and Appellate Authorities to have Powers of Civil Court
 Certifying Officers and appellate authorities have the powers of a Civil Court, including evidence
collection, oath administration, witness attendance, and document production. They are considered Civil
Courts under the Code of Criminal Procedure, 1973.

3.13 Section 12A - Temporary Application of Model Standing Orders

 Model Standing Orders formed under the Industrial Employment (Standing Orders) Act, 1946 shall not
apply to an establishment in respect of which the Appropriate Government is that of the State of Gujarat
or the Government of the State of Maharashtra.

3.14 Section 13 - Penalties and Procedure

 An employer failing to submit draft standing orders or making modifications
otherwise than in accordance with the provisions of this Act may face a fine of
up to Rs. 5,000.
• For a continuing offense, an additional fine of up to Rs. 200 per day may
apply after the initial day of the offense.
 An employer who fails to comply with certified standing orders may face a fine up to Rs. 100.
• For a continuing offense, an additional fine of up to Rs. 25 per day may apply after the initial day of
the offense.
 Prosecution for an offense under this section requires prior approval from the appropriate Government.
• Such offenses can only be tried in a court of at least a Metropolitan or Judicial Magistrate of the
second class.

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3.15 Section 13A - Interpretation, etc., of Standing Orders

 If there’s a question about the application or interpretation of a certified standing order, the employer,
workman, or their representative body can refer it to a designated Labor Court under the Industrial
Disputes Act, 1947, as specified by the appropriate Government. The Labor Court will hear the parties
and make a final and binding decision.

Concept Check
Q. As per the Industrial Employment (Standing Orders) Act, 1946, where any workmen is suspended
by the employer pending investigation of misconduct against him, the employer shall pay to such
workman how much subsistence allowance for the 90 days of suspension?
A. 20% of the wages
B. 30% of the wages
C. 50% of the wages
D. 75% of the wages

Ans: C

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The Trade Unions Act, 1926

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1 History of Trade Unions

The history of trade unions in India is a long and complex one, dating back to
the colonial period and evolving significantly over time. Here is an overview of
the key milestones and developments in the history of trade unions in India.

Early Roots (19th Century):

 The earliest forms of labor organizing in India can be traced back to the
19th century during British colonial rule.
 The first recorded strike in India took place in 1829 when Bombay (now Mumbai) weavers protested
against low wages and harsh working conditions.

Formation of the First Trade Unions (Late 19th Century)

 The formation of organized trade unions began in the late 19th century. In Late 1890s, the Amalgamated
Society of Railway Servants of India and Burma was formed, becoming one of the first recognized trade
unions in India.
 The Madras Labor Union, founded in 1918 by B.P. Wadia, played a significant role in organizing labor in the
southern part of India.

British Trade Union Movement Influence

 The Indian labor movement was influenced by the British trade union movement, which provided
organizational models and ideas.
 The trade union movement gained momentum during World War I when labor demands for better wages
and working conditions intensified.

Emergence of National Trade Union Organizations (1920s-1930s)

 The All-India Trade Union Congress (AITUC) was founded in 1920 and became one of the largest and most
influential trade union organizations in India.
 It had strong affiliations with the Indian National Congress (INC) during the struggle for independence.
 Other prominent trade unions that emerged during this period included the Hind Mazdoor Sabha (HMS)
and the All-India Railway men’s Federation (AIRF).

Post-Independence Period
 After India gained independence in 1947, the role and significance of trade unions continued to grow.
 The Industrial Disputes Act of 1947 and the Trade Unions Act of 1926 provided legal recognition and
protection to trade unions.

Emergence of Political Affiliations

 Trade unions in India have often been politically affiliated. For example, AITUC was linked to the Communist
Party of India (CPI), while the Indian National Trade Union Congress (INTUC) was affiliated with the INC.
 These political affiliations influenced the direction and priorities of various trade unions.

Economic Reforms (1990s)

 The economic reforms of the 1990s, often referred to as liberalization and globalization, had a significant
impact on the labor movement in India.
 Trade unions played a vital role in safeguarding the rights and interests of workers during this period.

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Contemporary Landscape
 India today has a diverse and fragmented trade union landscape with a wide range of organizations
representing various industries and interests.
 Major trade unions include AITUC, INTUC, Bharatiya Mazdoor Sangh (BMS), and others, often affiliated
with different political parties.

Ongoing Challenges
 Trade unions in India continue to face challenges such as informal labor, low unionization rates in some
sectors, and a changing economic landscape.
 The history of trade unions in India reflects the country’s labor struggles, political affiliations, and the
evolving nature of its economy. These unions have played a crucial role in advocating for workers’ rights
and improving labor conditions throughout India’s history.

2 Concept and Relevance of Trade Unions

Trade unions are organizations formed by workers to represent their
collective interests and negotiate with employers and governments on
issues related to employment conditions, wages, benefits, and workplace
rights. The concept and relevance of trade unions can be understood in
various ways.

Concept of Trade Unions:

 Collective Bargaining: Trade unions are primarily concerned with collective bargaining. They negotiate
employment terms and conditions on behalf of their members, striving to secure better wages, benefits,
working hours, job security, and improved working conditions.
 Worker Representation: Trade unions serve as a voice for workers. They ensure that employees have a say
in decisions that affect their working lives, both at the individual and collective levels.
 Solidarity: Trade unions foster solidarity among workers. By coming together, employees can exert greater
influence and advocate for their interests more effectively.
 Protection of Rights: Unions play a critical role in safeguarding workers’ rights. They can provide legal
assistance, support, and advocacy when employees face issues such as discrimination, harassment, or
unfair labor practices.
 Training and Education: Many trade unions offer training and educational programs to enhance the skills
and knowledge of their members, thus promoting career development.

Relevance of Trade Unions:

 Negotiating Power: Trade unions empower workers by giving them a collective voice in bargaining with
employers. This can lead to improved working conditions, fair wages, and benefits.
 Worker Protection: Unions act as a buffer against unfair labor practices, ensuring that employees are
treated justly and are not subject to exploitation or discrimination.
 Social Welfare: Trade unions often work on issues related to social welfare, including health and safety
regulations, paid leave, and retirement benefits, contributing to workers’ well-being.
 Skill Development: Many unions offer training and development programs that enhance the skills and
employability of their members.
 Political Advocacy: Unions can influence government policies and legislation related to labor and
employment, advocating for laws that protect workers’ rights.

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 Promoting Equality: Unions often advocate for gender and minority equality in the workplace, helping to
reduce workplace discrimination.
 Counterbalance to Employer Power: Trade unions provide a counterbalance to the power of employers,
ensuring that workers’ interests are not overlooked in the pursuit of profit.
 Collective Action: In times of crisis, such as economic downturns or layoffs, trade unions can collectively
represent workers’ interests, negotiate for job security, and provide a safety net.
 Globalization: In the era of globalization, trade unions can help workers respond to international labor
market pressures, ensuring that workers’ rights are not compromised in the pursuit of competitiveness.

3 Back drop of Trade Union Act 1926

The Trade Unions Act of 1926 is a significant piece of legislation in India that governs
the formation, registration, and functioning of trade unions. To understand the
backdrop of this act, it is essential to consider the historical context and the labor-
related issues prevailing in India at the time:

 Labor Unrest during Colonial Rule: During British colonial rule in India, the
working conditions for laborers were often harsh, with long hours, low wages,
and minimal job security. Workers in various industries faced exploitation and discrimination.
 Emergence of Labor Movements: As a response to these unfavorable conditions, labor movements and
strikes started to emerge in India in the late 19th and early 20th centuries. Workers began demanding
better working conditions, higher wages, and job security.
 Impact of World War I: World War I had a significant impact on the labor movement in India. The war
effort led to increased demand for labor in various industries, which, in turn, fueled labor unrest as workers
sought to improve their conditions.
 Need for Regulation: The British colonial administration recognized the need for regulation of labor
relations to maintain industrial peace, as well as to prevent and resolve disputes between workers and
employers.
 Montagu-Chelmsford Reforms: The Montagu-Chelmsford Reforms of 1919 introduced limited self-
government in British India. As part of these reforms, labor was included as a provincial subject, allowing
Indian provinces to legislate on labor matters.
 Royal Commission on Labor: The Royal Commission on Labor, appointed in 1929, recommended the
enactment of comprehensive labor legislation, including legislation governing trade unions.

Enactment of the Trade Unions Act, 1926: In this backdrop, the Trade Unions Act of 1926 was passed by the
British colonial government in India. The act provided a legal framework for the recognition and registration
of trade unions. It also outlined the rights, privileges, and responsibilities of registered trade unions, including
immunity from certain forms of civil liability and protection against certain actions taken during strikes and
lockouts.

4 Objective of the Trade Unions Act,1926

The Trade Unions Act of 1926 was enacted in India to provide an Act for
the registration of Trade Unions and in certain respects to define the law
relating to registered Trade Unions. Its primary objectives were to regulate
and facilitate the activities of trade unions and to establish certain legal rights

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and immunities for registered trade unions and their members. Here are the other objectives of the Trade
Unions Act, 1926:

 Recognition of Trade Unions: The Act aimed to formally recognize trade unions as legitimate entities that
could represent the interests of workers in negotiations with employers. By providing a legal framework
for registration, it allowed trade unions to gain official recognition.
 Legal Status: Registered trade unions under the Act were given legal status, making them capable of
entering into contracts, owning property, and suing or being sued in their own names. This legal recognition
enhanced the bargaining power of trade unions.
 Protection of Rights: The Act aimed to protect the rights of trade unions and their members by granting
them certain legal immunities and privileges. These protections included immunity from certain civil suits
and actions taken in contemplation or furtherance of a trade dispute.
 Settlement of Disputes: The Act provided a framework for the peaceful settlement of industrial disputes
through conciliation, arbitration, or adjudication. It aimed to maintain industrial peace and reduce the
likelihood of strikes and lockouts.
 Regulation of Trade Union Funds: The Act allowed trade unions to manage their funds and finances in
an organized and accountable manner. It specified the purposes for which union funds could be utilized.
 Promotion of Democracy within Trade Unions: By prescribing certain rules for the internal functioning of
trade unions, such as the election of office bearers and the submission of audited financial statements, the
Act aimed to promote democracy and transparency within these organizations.
 Recognition of Federations: The Act recognized that trade unions could form federations and confederations
to collectively represent the interests of their members. It allowed such federations to be registered as
well.
 Strengthening Workers’ Collective Bargaining Power: By providing a legal framework for trade unions,
the Act intended to strengthen the collective bargaining power of workers. This was particularly important
during a period when labor disputes and strikes were becoming more common.
 Ensuring Accountability: The Act required registered trade unions to maintain certain records, submit
annual returns, and follow specific rules regarding their constitution and functioning. This helped ensure
transparency and accountability within trade unions.
 Facilitating Peaceful Resolution of Labor Disputes: One of the key objectives of the Act was to reduce
industrial strife and promote a peaceful resolution of labor disputes through negotiation and legal means,
thereby maintaining industrial harmony.

Overall, the Trade Unions Act of 1926 aimed to strike a balance between the interests of workers and
employers, providing a legal framework that allowed workers to organize and bargain collectively while
also setting certain rules and procedures to maintain industrial peace and stability. It laid the foundation for
the recognition and regulation of trade unions in India, and it has been amended several times to adapt to
changing labor dynamics and legal requirements.

5 Important Provisions
5.1 Section 2 – Important Definitions
 “Office-bearer” - In a Trade Union, “office-bearer” means any executive member, but does not include an
auditor.
 “Trade dispute” means
• any dispute between employers and workmen or between workmen and workmen

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• or between employers and employers

which is connected with the employment or non-employment or the terms of employment or the
conditions of labour, of any person
 “Workmen” – It refers to all persons employed in a trade or industry, whether or not in the employment
of the employer with whom the trade dispute arises.
 “Trade Union”
Any combination, whether temporary or permanent, formed primarily for
the purpose of regulating the relations
• between workmen and employers or
• between workmen and workmen, or between employers and employers
or
• for imposing restrictive conditions on the conduct of any trade or business, and includes any federation
of two or more Trade Unions
However, this law does not apply to agreements between business partners, employer-employee
agreements, or agreements related to the sale of a goodwill of a business or instruction in any profession,
trade or handicraft.

5.2 Section 3 - Appointment of Registrars

 The appropriate government appoints a Registrar of Trade Unions for each state. Additionally, the
appropriate government can appoint more officials known as Additional and Deputy Registrars to assist
the Registrar.
 These Additional or Deputy Registrars will act under the supervision of the Registrar and perform specific
duties within defined local limits.

5.3 Section 4 – Mode of Registration

 Any 7 or more members of a Trade Union can apply for registration by subscribing their names to the
rules of the Trade Union and following the rules and requirements outlined in this law.
 Conditions for Registration:
• No Trade Union of workers will be registered unless at least 10% or 100 workers (whichever is less)
from the concerned establishment or industry are members at the time of application
• Additionally, the union must have at least 7 members from the establishment or industry to which it
is connected.
 Invalidation of Application:
• If an application has been made for registration, it will not be deemed invalid if some applicants
withdraw, provided:
■ The number of withdrawals does not exceed half of the total applicants
■ The withdrawn applicants inform the Registrar in writing before the registration of the Trade Union

5.4 Section 5 - Application for Registration

 When applying for the registration of a Trade Union, the application must be submitted to the Registrar. It
should include a copy of the union’s rules and provide the following details:
• Names, occupations, and addresses of the members applying.
• The name of the Trade Union and its head office address.

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• the titles, names, ages, addresses and occupations of the office-bearers of the Trade Union.
 If the Trade Union has been in exisence for more than a year before applying for registration, a general
statement of its assets and liabilities must also be submitted to the Registrar.

5.5 Section 6 - Provisions to be Contained in the Rules of a Trade Union

 To be eligible for registration under this Act, a Trade Union’s rules must
cover the following:
• The union’s name.
• Its objectives and purposes.
• How the union’s funds will be used, following the law.
• Keeping a member list and allowing members to inspect it.
• Accepting ordinary members engaged in the relevant industry.
• Accepting the required number of honorary or temporary members as office-bearers.
• The payment of a minimum subscription by members of the Trade Union shall not be less than:
 1 rupee per annum for rural workers;
 3 rupees per annum for workers in other unorganised sectors; and
 12 rupees per annum for workers in any other case.
• Rules for member benefits, fines, or penalties.
• How to amend, vary, or rescind the rules.
• The process for appointing and removing union executives.
• Safeguarding union funds, including an annual audit, as prescribed, and allowing inspection of the
account books by office-bearers and members.
• The procedure for dissolving the Trade Union.

5.6 Section 8 - Registration

 Once the Registrar confirms that the Trade Union has met all the registration requirements, the registrar
shall register the union by recording its details in a prescribed register.

5.7 Section 9 - Certificate of Registration

 The Registrar, on registering a Trade Union, shall issue a certificate of registration in the prescribed form,
which shall be conclusive evidence that the Trade Union has been duly registered under this Act.

5.8 Section 10 - Cancellation of Registration

 A certificate of registration for a Trade Union can be withdrawn or canceled by the Registrar under the
following circumstances:
• If the Trade Union applies for it, the following prescribed verification.
• If the Registrar believes the certificate was obtained through fraud or error.
• If the Trade Union no longer exists or willfully violates this Act or retains a rule inconsistent with it, or
rescinds a rule required by section 6.
However, the Registrar must give the Trade Union at least 2 months’ notice in writing specifying the
grounds for withdrawal or cancellation, except when it is at the request of the Trade Union itself.

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5.9 Section 11 - Appeal

 If someone is unhappy with the Registrar’s decision to not register a Trade Union or to withdraw/cancel its
certificate, they can file an appeal within a specified timeframe:
• If the Trade Union’s head office is in a Presidency town, they can appeal to the High Court.
• If the head office is elsewhere, they can appeal to a Court appointed by the appropriate Government.
• The appellate Court can either dismiss the appeal or order the Registrar to register the Union or
reinstate the certificate.
• The Court follows a procedure similar to a civil suit and can decide on the payment of costs.
• If the appeal is dismissed by the Court, the person can appeal to the High Court and the High Court has
the same powers and follows the same procedures as the appellate Court.

5.10 Section 12 - Registered office

 All communications and notices to a registered Trade Union should go to its registered office.
 If the head office’s address changes, the Trade Union must inform the Registrar within 14 days in writing,
and the new address will be updated in the register.

5.11 Section 14 - Certain Acts not to apply to Registered Trade Unions

 Registered Trade Unions are exempt from the following Acts:
• Societies Registration Act, 1860.
• Co-operative Societies Act, 1912.
• Companies Act, 1956.
And any registration of a Trade Union under these Acts is considered void.

5.12 Section 15 - Objects on which General Funds may be Spent

 The general funds of a registered Trade Union can only be used for the following purposes:
• Paying salaries, allowances, and expenses to office-bearers of the
Trade Union.
• Covering administrative expenses, including audit fees.
• Legal proceedings to protect Trade Union rights or member-
employer relations.
• Handling trade disputes for the Trade Union or its members.
• Compensating members for losses due to trade disputes.
• Providing benefits for members, like death, old age, sickness, accident, or unemployment allowances.
• Managing life, sickness, accident, or unemployment insurance policies for members.
• Offering educational, social, or religious benefits for members or their dependents, including funeral
expenses.
• Sustaining a periodical for discussions on labour-related issues.
• Contributing to causes benefiting workers, not exceeding one-fourth combined total of the gross
income which has up to that time accrued to the general funds of the Trade Union during that year
and of the balance at the credit of those funds at the commencement of that year
• Any other purpose specified by the appropriate Government in the Official Gazette.

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5.13 Section 20 - Right to Inspect Books of Trade Union

 The account books and member list of a registered Trade Union must be accessible for inspection by an
office-bearer or member of the Trade Union as outlined in the union’s rules.

5.14 Section 21 - Rights of Minors to Membership of Trade Unions

 Anyone aged 15 or more can be a member of a registered Trade Union, unless the union’s rules specify
otherwise.
 Such members shall enjoy all the rights of a member and execute all instruments and give all acquittances
necessary to be executed or given under the rules.

5.15 Section 21A - Disqualifications of Office-bearers of Trade Unions

 To be eligible for office in a registered Trade Union:
• The individual must be at least 18 years old.
• he has not been convicted by a Court in India of any offence involving moral
turpitude and sentenced to imprisonment, unless a period of five years has
elapsed since his release.

5.16 Section 22 - Proportion of Office-bearers to be Connected with the Industry

 Not less than 1/2 of the total number of office-bearers of every registered Trade Union in an unorganised
sector shall be persons actually engaged or employed in an industry with which the Trade Union is
connected.
 Except as provided above, all office-bearers of a registered Trade Union, except not more than 1/3rd of
the total number of office-bearers or 5, whichever is less, shall be persons actually engaged or employed
in the establishment or industry with which the Trade Union is connected.
• an employee who has retired or has been retrenched shall not be treated as an outsider for the purpose
of holding office in a Trade Union.
 No member of the Council of Ministers or a person holding an office of profit (not being engaged or
employed in an establishment or industry with which the Trade Union is connected), in the Union or a
State, shall be a member of the executive or other office-bearer of a registered Trade Union.

5.17 Section 23 - Change of Name

 A registered Trade Union can change its name with the approval of at least 2/3rd of its total members.

5.18 Section 24 - Amalgamation of Trade Unions

 Any two or more registered Trade Unions can become amalgamated into one. Provided that the votes of
at least one-half of the members of each or every such Trade Union entitled to vote are recorded and that
at least 60% of those votes are recorded in the favor of the proposal.

5.19 Section 25 - Notice of Change of Name or Amalgamation

 For any change of name or amalgamation of Trade Unions:
• A written notice must be sent to the Registrar, signed by the Secretary and 7 members of the Trade
Union undergoing the change or involved in the amalgamation. If the new Trade Union’s head office is
in a different state, the notice must also be sent to that state’s Registrar.
• If the proposed new name is identical to or too similar to an existing registered Trade Union’s name,
the Registrar can reject the change.

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• If all requirements for the name change are met, the Registrar will register it, and the change will be
effective from the registration date.
• For amalgamation, the Registrar in the state where the new Trade Union’s head office is located will
register the new union if all conditions are satisfied, and the amalgamation will be effective from the
registration date.

5.20 Section 27 - Dissolution of Trade Unions

 A notice of dissolution, signed by 7 members and the Secretary, must be sent to the Registrar within 14
days of dissolution.
 Registrar shall register the same and dissolution shall have effect from the date of such registration
 If the Trade Union’s rules do not specify how its funds should be distributed upon dissolution, the Registrar
will divide the funds among the members as prescribed by law.

5.21 Section 28 - Returns

 Every registered Trade Union must annually submit the following information to the Registrar:
• General Statement: This statement, covering the year up to December 31st, must be sent on or before
the prescribed date. It should include all financial details, audited in the prescribed manner, such as
receipts and expenditures during the year, and the assets and liabilities as of December 31st.
• Changes in Office bearers: Along with the general statement, the Trade Union must provide a statement
showing all changes in office-bearers made during the year in question. Additionally, a corrected copy
of the union’s rules, up to the date of submission, should be included.
• Alterations in Rules: Any changes or alterations made in the rules of the registered Trade Union must
be promptly communicated to the Registrar within 15 days of making those alterations.

5.22 Section 29 - Power to Make Regulations

 The appropriate Government has the authority to make regulations to implement the provisions of this
Act.

5.23 Section 31 - Failure to Submit Returns

 Failure by a registered Trade Union to provide the necessary notices or documents as mandated by this
Act can result in penalties:
• Any office-bearer, person obligated by the union’s rules, or executive member who fails to provide the
required notices or documents may be fined up to 5 rupees. For continuing default, an additional fine
of up to 5 rupees per week may be imposed, but the total fine cannot exceed 50 rupees.

5.24 Section 33 - Cognizance of Offences

 No Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence
under this Act.
 No Court shall take cognizance of any offence unless a complaint has been made by, or with the previous
sanction of, the Registrar within 6 months of the date on which the offence is alleged to have been
committed.

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Concept Check
Q. As per the Trade Unions Act, 1926, what is the minimum number of members required for registration
of a Trade Union?
A. 5
B. 2
C. 7
D. 3

Ans: C

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The Factories Act, 1948

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1 History of Factories
The history of factory workers in India is intertwined with the broader history
of industrialization, labor movements, and socio-economic changes in the
country.

Pre-Industrial Era:
 Before the advent of modern industrialization, India had a predominantly
agrarian economy, with a vast majority of the population engaged in
agriculture and traditional handicrafts. Cottage industries and local crafts were the primary sources of
livelihood for many.

British Colonial Period:

 The British colonial rule in India, which lasted for nearly two centuries, brought significant changes to the
economic landscape.
 With the advent of British industrialization, certain industries like textiles, jute, and mining started to
develop in India. These early industries laid the foundation for factory-based production.
 During this period, the working conditions for factory workers were often harsh, with long working hours,
low wages, and inadequate safety measures. Child labor and exploitation of workers were prevalent.
 The working class faced numerous challenges as they struggled for better conditions and wages.

Early Labor Movements:

 As industrialization progressed, labor movements began to take shape in India. Workers started forming
unions and associations to demand better working conditions, higher wages, and the protection of their
rights.
 One of the significant milestones was the formation of the Bombay Mill Hands Association in 1890, which
marked the beginning of organized labor movements in the country.

Legislative Reforms:
 Amid growing unrest and demands for better working conditions, the British colonial administration
introduced some labor-related legislation, including the Factory Act of 1881 and the Factory Act of 1891.
 These acts aimed to regulate certain aspects of factory operations, such as working hours, child labor,
and safety measures.
 However, these early legislative efforts were limited in scope and often lacked effective enforcement. It
was only after India gained independence in 1947 that comprehensive labor reforms started to take place.

Post-Independence Era:
 The newly independent Indian government recognized the importance of protecting workers’ rights and
improving their working conditions. The Factories Act, 1948, was a significant step in this direction.
 This act aimed to regulate various aspects of factory operations, including working hours, safety measures,
welfare facilities, and more.
 Since then, there have been numerous amendments to labor laws and factory regulations in India. The
government has continued to work on improving workers’ rights, safety standards, and welfare facilities.
 Various industries, including textiles, automobile manufacturing, and information technology, have seen
substantial growth, leading to increased employment opportunities.

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Provisions in Indian Constitution:

The Constitution of India does not contain detailed provisions specifically related to factories. However,
there are several articles within the Constitution that indirectly impact labor rights, industrial regulation, and
welfare, which can be applicable to factory workers.

These articles are part of the broader framework that governs labor and industrial relations in the country:
1) Article 23 - Prohibition of Traffic in Human Beings and Forced Labor
2) Article 24 - Prohibition of Employment of Children in Factories, etc
3) Article 39 -This principle directs the state to ensure that the health and
strength of workers, men, and women are not abused……
4) Article 41 - This principle emphasizes the right to work, education, and
public assistance in cases of unemployment, old age, sickness, and disablement.
5) Article 42 - This principle focuses on securing just and humane conditions of work and maternity relief.
6) Article 43 - This principle directs the state to ensure a living wage, good working conditions, and social and
cultural opportunities for workers.
7) Article 43A - Participation of Workers in Management of Industries
8) Article 46 - Promotion of Educational and Economic Interests of Scheduled Castes, Scheduled Tribes, and
Other Weaker Sections (Like laborers)
9) Article 47 - Duty of the State to Raise the Level of Nutrition and the Standard of Living (Indirectly affects
the welfare of the workers)
10) Article 48A - Protection and Improvement of Environment (Ensuring a safe and healthy environment can
be relevant to factory operations)

2 Objective of the Factories Act 1948

The main objective of the Act is to consolidate and amend the law regulating labour in factories. Objective can
be interpreted in various dimensions which are as follows -

 The act aims to ensure the safety of workers by regulating the use of
machinery, equipment, and processes in factories.
 The act emphasizes the provision of essential welfare facilities to factory
workers, including clean drinking water, sanitary facilities, and first aid.
 The act sets standards for working conditions, such as regulating the
working hours of adult workers and prohibiting the employment of women
and children during specific hours.
 The act prohibits the employment of children below a certain age in factories, aiming to protect their
physical and mental well-being.
 The act mandates maintaining cleanliness and hygiene within factories to prevent the spread of diseases
and ensure a healthy working environment.
 The act empowers government-appointed factory inspectors to monitor and enforce compliance with
its provisions.
 The act promotes the rights of workers by setting guidelines for working conditions, wages, and leave
provisions.
 By establishing regulations and standards, the act contributes to maintaining industrial harmony and
preventing disputes between employers and workers related to working conditions, safety, and welfare.

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 The act allows for amendments and rules to be made to adapt to technological advancements and
changing industrial scenarios, ensuring that worker safety and well-being are not compromised by new
developments.

Overall, the Factories Act of 1948 seeks to create a framework that balances the interests of employers
and workers while prioritizing the health, safety, and welfare of those employed in factories. It reflects the
government’s commitment to providing a safe and conducive working environment for industrial workers in
India.

3 Important Provisions
3.1 Section 2 – Important definitions
S.No Term Definitions
1. Child A person who has not completed his 15th year of age.
2. Adolescent A person who has completed his 15th year of age but has not completed his 18th
year.
3. Adult A person who has completed his 18th year of age.
4. Young Person a person who is either a child or an adolescent

 ”Factory” Means any premises including the precincts thereof:

• If there are 10 or more workers currently working or having worked
on any day within the last 12 months and within any section of these
premises, a manufacturing process is happening with power, or
• If there are 20 or more workers currently working or having worked
on any day within the last 12 months and within any section of these
premises, a manufacturing process is happening without the use of power.

However, this does not include:

• A mine subject to the operation of or
• A mobile unit belonging to the armed forces of the Union,
• Railway running shed.
• A hotel, restaurant or eating place.
■ For computing the number of workers, all the workers in different groups and relays in a day shall
be taken into account.
■ For the purposes of this definition of factory the mere fact that an Electronic Data Processing Unit
or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a
factory if no manufacturing process is being carried on in such premises or part thereof.

3.2 Section 5 - Power to exempt during public emergency

 During a public emergency, the State Government can use an Official Gazette notification to exempt
factories or categories of them from certain provisions of this Act (excluding section 67).
 The exemption cannot be made for a period exceeding three months at a time

3.3 Section 6 - Approval, licensing and registration of factories

 Rules related to the approval, licensing and registration may be made by the State Government.

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 If no response is given to the applicant within 3 months of sending the application for permission for the
site on which the factory is to be situated, the requested permission will be considered granted.

3.4 Section 7 - Notice by occupier

 The occupier must notify the Chief Inspector in writing at least 15 days before commencing the use of
premises as a factory, providing the following information:
• The name and situation of the factory
• The name and address of the occupier
• The name and address of the owner of the premises or building.
• The address to which communications relating to the factory may be sent.
• The nature of the manufacturing process
 Carried on in the factory during the last 12 months in the case of factories in existence on the date
of the commencement of this Act.
 To be carried on in the factory during the next 12 months in the case of all factories
• The total rated horsepower installed or to be installed in the factory, which shall not include the rated
horsepower of any separate stand-by plant.
• The name of the manager of the factory for the purposes of this Act
• The number of workers likely to be employed in the factory.
• The average number of workers per day employed during the last 12 months in the case of a factory in
existence on the date of the commencement of this Act.
• Such other particulars as may be prescribed.
 For all establishments newly covered under the Act, the occupier must send a written notice to the Chief
Inspector containing the details within 30 days from the Act’s commencement date.
 A factory with a manufacturing process usually active for under 180 working days annually must inform
the Chief Inspector in writing before restarting work. This notice should be sent at least 30 days before
work begins.
 Upon appointing a new manager, the occupier must send a written notice to the Inspector and a copy of
it to the Chief Inspector within 7 days of the new manager assuming charge.

3.5 Section 7A - General duties of the occupier

 Occupiers must prioritize the health, safety, and welfare of workers in the factory, within reasonable
practicability.
 Their duties encompass various aspects, including:
• Ensuring safe plant and work systems
• Maintaining safety for articles and substances handling.
• Providing necessary information, training, and supervision for worker safety.
• Keeping workplaces safe and accessible, providing safe means of entry and exit.
• Providing a safe working environment with adequate facilities for worker welfare.
 Occupiers must create and update a written statement outlining their health and safety policy, as well as
the organization and arrangements for implementing the policy.

3.6 Section 8 - Inspectors

 The State Government has the authority to appoint qualified individuals as Inspectors.

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 Additional Chief Inspectors, Joint Chief Inspectors, Deputy Chief Inspectors, and other officers can be
appointed to assist the Chief Inspector with specified powers.
 Every District Magistrate shall be an Inspector for his district
 The State Government can appoint public officers as additional Inspectors within designated areas.
 If multiple Inspectors exist in an area, the State Government can specify their respective powers and
designate an Inspector for receiving notices.
 All appointed officials under this section are considered public servants under the Indian Penal Code and
are subordinate to authorities specified by the State Government.

3.7 Section 9 - Powers of Inspectors

 An Inspector, within his designated area, can:
• Enter places used as factories, accompanied by assistants or experts if needed.
• Examine premises, machinery, and substances.
• Investigate accidents or dangerous incidents, gathering necessary statements.
• Demand production of factory-related documents.
• Seize or copy documents for offenses under this Act.
• Instruct the occupier to maintain undisturbed premises for examination.
• Take measurements, photos, and recordings using appropriate tools.
• Deal with hazardous articles/substances, including dismantling, testing, or possessing them for
examination.
• Exercise other prescribed powers.

4 Health
Effective arrangements should be made in every factory for:

4.1 Section 11 - Cleanliness

¾ Every factory shall be kept clean and free from nuisance.
• Dirt and refuse shall be removed daily.
• Floors of workrooms shall be cleaned at least once every week by
washing/disinfectant.
• Effective drainage shall be provided where floors become wet.
• Walls, ceilings, passages, and staircases:
■ Painted (not washable water-paint): repainted/re-varnished once every 5 years.
■ Washable water-paint: repainted once every three years and washed every 6 months.
■ Painted/varnished or impervious: cleaned once every 14 months.
■ Otherwise: whitewashed/colour washed once every 14 months.
• Doors, windows, and shutters: painted/varnished once every 5 years.

4.2 Section 12 - Disposal of waste and effluents

 Factories must establish effective waste treatment and disposal methods to neutralize harmful effects of
manufacturing processes.

4.3 Section 13 - Ventilation and temperature

 Factories must ensure proper ventilation and comfortable temperatures in workrooms.

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 Structures should be designed to maintain reasonable temperatures, especially for work involving high
heat.
 The State Government can set standards for ventilation and temperature, requiring instruments and
records.
 If the Chief Inspector deems it necessary, they can issue written orders for suitable measures to control
high temperatures.

4.4 Section 14 - Dust and fume

 Factories emitting harmful dust, fumes, or impurities must prevent inhalation and accumulation in
workrooms.
 If needed, exhaust appliances should be placed near the source and enclosed. Stationary internal
combustion engines must vent exhaust outdoors, and precautions are required for other engines to avoid
injurious fume buildup in work areas.

4.5 Section 15 - Artificial humidification

 For factories where air humidity is artificially increased, the State Government can establish rules:
• Setting humidity standards
• Regulating methods of increasing humidity
• Mandating accurate testing and recording of humidity levels
• Specifying ventilation and cooling methods for workrooms in such factories, water used for
humidification must be from a clean source or properly purified. If an Inspector finds inadequate water
purification, they can issue a written order to the factory manager, specifying necessary actions to be
taken by a specified date.

4.6 Section 16 - Overcrowding

 Rooms in factories cannot be overcrowded to the detriment of worker health.
 Each workroom must have a minimum cubic space per worker, either 9.9 cubic meters for existing factories
or 14.2 cubic meters for newer ones (excluding space higher than 4.2 meters from the floor).
 The Chief Inspector can mandate a notice indicating the maximum worker count. Upon Chief Inspector’s
order, a workroom might be exempted if overcrowding doesn’t jeopardize worker health.

4.7 Section 17 - Lighting

 Factories must have adequate lighting, either natural or artificial, in all work areas.
 Glazed windows and skylights used for lighting must be kept clean and unobstructed.
 Measures should be taken to prevent glare and excessive shadows that could cause eye strain or accidents.
 The State Government can establish lighting standards for factories or specific processes.

4.8 Section 18 - Drinking water

 In all factories, suitable arrangements must be established to provide workers with ample, clean drinking
water.
 These points should be clearly labeled in a language understood by the majority of workers.
 They should not be located within six meters of potential contaminants, unless approved otherwise by the
Chief Inspector.
 In factories with over 250 workers, cooling means for drinking water during hot weather must be provided.

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 The State Government can create rules to ensure compliance with these provisions, along with examining
water supply and distribution in factories.

4.9 Section 19 - Latrines and urinals

 In each factory:
• Adequate and conveniently accessible latrine and urinal facilities must be always available for workers.
• Separate enclosed spaces should be provided for male and female workers.
• Facilities should be well-lit, ventilated, and not directly connected to workrooms unless exempted by
the Chief Inspector.
• All accommodation must be kept clean and sanitary.
• Dedicated sweepers should maintain cleanliness.
In factories with over 250 workers:
• Sanitary latrine and urinal accommodations are required.
• Latrine and urinal areas, up to a height of 90 centimeters, should have smooth, polished surfaces.
• Walls, blocks, and sanitary pans shall be washed and cleaned at least once every 7 days with detergents
or disinfectants.
• The State Government can set rules for the proportion of latrines and urinals to workers, and other
sanitation matters, to protect workers’ health.

4.10 Section 20 - Spittoons

 Each factory must have an adequate number of spittoons placed conveniently, kept clean and hygienic.
 The State Government can establish rules regarding the type, number, and location of spittoons, as well
as their maintenance.
 Spitting within the premises is prohibited except in provided spittoons, and a notice specifying this rule
and its penalty should be displayed.
 Violators of this rule may face a fine of up to 5 rupees.

5 Safety
5.1 Section 21 - Fencing of machinery
 Machinery must be securely fenced with robust safeguards.

5.2 Section 22 - Work on or near machinery in motion

 When inspecting machinery while in motion, only trained adult male
workers in specific clothing, appointed by the factory, are allowed.
 Women and young workers are not allowed to clean, lubricate, or adjust any part of a prime mover,
transmission machinery, or any machine in motion.

5.3 Section 23 - Employment of young persons on dangerous machines

 No young person allowed without:
• Proper instruction on risks and precautions.
• Adequate training or supervision by experienced individuals.
 The State Govt. defines machines needing these measures due to danger.

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5.4 Section 24 - Striking gear and devices for cutting off power
 Emergency Power Cutoff:
• Install and maintain power-cutoff devices for emergencies.
• Required in every workroom, limited to electrically powered factories.

5.5 Section 25 - Self-acting machines

 Parts/materials on moving self-acting machines cannot traverse within 45 cm of fixed structures where
people pass.
 Machines installed before the Act may continue with Chief Inspector’s safety approval.

5.6 Section 26 - Casing of new machinery

 Set Screws, Bolts, Keys:
• Any such parts on revolving components must be guarded to prevent danger, either by sinking, encasing,
or other effective means.
 Gearing Protection:
• Toothed or friction gearing needing no frequent adjustments during motion must be entirely enclosed,
except when its position ensures safety.
 Legal Consequences:
• Selling or renting out non-compliant power-driven machinery for factory use is punishable.
• Penalties include imprisonment up to 3 months, a fine up to 5 hundred rupees, or both.
 State Government Authority:
• The State Government can establish additional rules for safeguarding other dangerous machine parts
or specific machine types.

5.7 Section 27 - Prohibition of employment of women and children near cotton-openers

 Women and children cannot work where a cotton opener operates.
 Exception: If the feed-end is in a separate partitioned room, they can work on that side.

5.8 Section 29 - Lifting machines, chains, ropes and lifting tackles

 All parts must be well-constructed, sound, strong, and defect-free.
 Regular maintenance and expert examination every 12 months, noted in a register.
 Load limit must be marked and recorded; working loads prominently displayed.
 While a person is employed on or near the wheel track of a travelling crane, effective measures shall be
taken to ensure that the crane does not approach within 6 meters of that place

5.9 Section 30 - Revolving machinery

 Notice Requirement: In grinding factories, each machine must have a notice displaying:
• Maximum safe working speed of grindstones or abrasive wheels.
• Speed of the shaft/spindle holding the wheel.
• Required pulley diameter for safe speed.
 Speed Limitation: Speeds in notices must not be exceeded.
 Safety Measures: Factory must ensure that grindstone/abrasive wheel peripheral speed adheres to safety
guidelines.

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5.10 Section 34 - Excessive weights

 Safety Limits: Workers cannot be employed to lift, carry, or move excessively heavy loads that could harm
them.
 State Government Authority:
• Rules can set maximum weights for lifting, carrying, or moving loads by different categories of workers.
• Rules may apply to specific factories, processes, or worker groups.

5.11 Section 35 - Protection of eyes

 Screens or goggles must be provided to shield against particles or fragments generated during the process.
 Screens or goggles must be provided to safeguard against excessive light exposure.

5.12 Section 36 - Precautions against dangerous fumes, gases, etc.

 No person shall be required or allowed to enter any chamber, tank, vat, pit, pipe, flue or other confined
space in any factory in which any gas, fume vapour or dust is likely to be present to such an extent as to
involve risk to persons being overcome thereby, unless it is provided with a manhole of adequate size or
other effective means of egress.

5.13 Section 36A - Precautions regarding the use of portable electric light
 Voltage Limitation: Inside confined spaces (chambers, tanks, etc.), portable electric devices above 24 volts
not allowed unless equipped with adequate safety devices.
 Inflammable Environment: If flammable gases, fumes, or dust might be present in such spaces, only flame-
proof lamps or lights permitted for use.

5.14 Section 37 - Explosive or inflammable dust, gas, etc

 Where in any factory any manufacturing process produces dust, gas, fume or vapour of such character and
to such extent as to be likely to explode on ignition, all practicable measure shall be taken to prevent any
such explosion

5.15 Section 38 - Precautions in case of fire.

 State Government Authority: State Government can establish rules for fire safety in factories or specific
categories.
 Chief Inspector’s Authority: Chief Inspector can demand additional safety measures if existing measures
are inadequate due to nature of work, factory construction, or other factors.

5.16 Section 39 - Power to require specifications of defective parts or tests of stability

 Inspectors can examine any building, machinery, or plant in a factory.
 If conditions seem hazardous to human life/safety: Can issue a written order to factory’s occupier or
manager (or both).

5.17 Section 40 - Safety of buildings and machinery

 If Inspector determines a building, ways, machinery, or plant in a factory is unsafe for human life or safety:
• An inspector can serve an order, specifying necessary measures to be taken.
• Occupier or manager (or both) must carry out the measures by a specified date.

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5.18 Section 40B - Safety Officers

 In factories where:
• At least 1000 workers are ordinarily employed, or
• Certain manufacturing processes involve risks to health, safety, or well-being of workers,
 The occupier must employ Safety Officers if required by the State Government through an official
notification.
 Safety Officer Role:
• Safety Officers oversee safety measures.
• Ensure compliance with regulations.
• Enhance worker safety.
 Qualifications and Conditions: The State Government defines qualifications, duties, and service conditions
of Safety Officers.

The occupier shall, in every factory where a hazardous process takes place, or where hazardous substances
are used or handled, set up a Safety Committee consisting of equal number of representatives of workers and
management to promote co-operation between the workers and the management in maintaining proper
safety and health at work and to review periodical the measures taken in that behalf:
Provided that the State Government may, by order in writing and for reasons to be recorded exempt the
occupier of any factory or class of factories from setting up such Committee.
(2) The composition of the Safety Committee, the tenure of office of its members and their right and duties
shall be such as may be prescribed

6 Provision Relating to Hazardous Processes

6.1 Section 41A - Constitution of Site Appraisal Committees
 The State Government can form a Site Appraisal Committee to evaluate
applications for establishing or expanding factories with hazardous
processes.
 The committee includes:
• the Chief Inspector of the State as Chairman
• a representative of the Central Board for the Prevention and Control
of Water Pollution appointed by the Central Government
• a representative of the Central Board for the Prevention and Control of Air Pollution
• representative of the State Board appointed under section 4 of the Water (Prevention and Control of
Pollution) Act, 1974
• a representative of the State Board for the Prevention and Control of Air Pollution
• a representative of the Department of Environment in the State
• a representative of the Meteorological Department of the Government of India
• an expert in the field of occupational health; and
• a representative of the Town Planning Department of the State Government,

and not more than five other members who may be co-opted by the State Government who shall be:

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• a scientist having specialised knowledge of the hazardous process which will be involved in the
factory,
• a representative of the local authority within whose jurisdiction the factory is to be established, and
• not more than three other persons as deemed fit by the State Government.
 The Site Appraisal Committee shall examine an application for the establishment of a factory involving
hazardous process and make its recommendation to the State Government within a period of ninety days
of the receipt of such application.

6.2 Section 41G – Safety Committee

 The occupier shall, in every factory where a hazardous process takes place, or where hazardous substances
are used or handled, set up a Safety Committee consisting of equal number of representatives of workers
and management to promote co-operation between the workers and the management in maintaining
proper safety and health at work and to review periodical the measures taken in that behalf.

7 Welfare
7.1 Section 42 - Washing facilities
 Adequate and suitable facilities for washing shall be
provided and maintained for the use of the workers therein

7.2 Section 43 - Facilities for storing and drying clothing

 The State Government may, in respect of any factory or
class or description of factories, make rules requiring the provision therein of suitable places for keeping
clothing not worn daring working hours and for the drying of wet clothing.

7.3 Section 44 - Facilities for sitting

 In every factory, suitable arrangements for sitting shall be provided and maintained for all workers obliged
to work in a standing position.

7.4 Section 45 - First-aid appliances

 Every factory must have easily accessible first-aid boxes or cupboards equipped with the prescribed
contents available at all working hours. The number of these boxes or cupboards should not be fewer
than one for every 150 workers ordinarily employed at any given time in the factory.
 Only the prescribed contents are allowed to be stored in a first-aid box or cupboard.
 Each first-aid box or cupboard needs to be under the responsibility of a designated person who holds a
State Government-recognized certificate in first-aid treatment. This responsible person should always be
available during the factory’s working hours.
 If a factory employs more than 500 on a regular basis, it must have an ambulance room of the specified
size.

7.5 Section 46 - Canteens

 The State Government has the authority to establish rules requiring that any specific factory with over
250 regular workers must have a provided and maintained canteen or canteens for worker use.
 The rules can cover various aspects, including:
• The deadline for establishing the canteen.

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• Standards for construction, accommodation, furniture, and equipment of the canteen.

• Types of food to be served and the associated charges.
• Setting up a managing committee for the canteen and representation of workers in its management.
• Identification of expenses related to canteen operation not included in food cost calculation, to be
borne by the employer.
• Delegating the power to the Chief Inspector to establish rules under clause (c), with specified conditions.

7.6 Section 47 - Shelters, rest rooms and lunchrooms

 Factories with over 150 regular workers, suitable shelters, or rest rooms along with a proper lunchroom,
including drinking water provision, must be provided and maintained for workers’ use.
 The provided shelters, restrooms, or lunchrooms should be well-lit, ventilated, and kept clean and
comfortable.
 The State Government holds the power to:
• Set standards for construction, accommodation, furniture, and equipment related to these facilities.
• Exempt specific factories or categories of factories from complying with this section through an Official
Gazette notification.

7.7 Section 48 - Creches

 For factories employing more than 30 women workers, a suitable room or rooms must be provided
and maintained for children under 6 years of age belonging to these women. These rooms should offer
sufficient space, proper lighting, ventilation, and cleanliness. They should be managed by women trained
in child and infant care.
 The State Government has the authority to establish rules:
• Defining the location and standards for constructing rooms, including furniture and equipment, as per
this section.
• Mandating additional childcare facilities in relevant factories, encompassing washing and changing
provisions for children’s clothing.
• Requiring the provision of free milk or refreshments or both for these children.
• Ensuring mothers of such children have facilities to feed them at necessary intervals within the factory.

7.8 Section 49 - Welfare officers

 In factories with 500 or more regular workers, the occupier must employ a specified number of welfare
officers as prescribed by the State Government.

8 Working Hours of Adults

8.1 Section 51 - Weekly hours
 No adult worker shall be required or allowed to work in a factory for
more than forty-eight hours in any week.

8.2 Section 52 - Weekly holidays

 No adult worker shall be required or allowed to work in a factory on
the first day of the week, unless:
• he has or will have a holiday for a whole day on one of the three
days immediately before or after the said day, and

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• the manager of the factory has, before the said day or the substituted day under clause (a), whichever
is earlier, —
 delivered a notice at the office of the Inspector of his intention to require the worker to work on
the said day and of the day which is to be substituted, and
 displayed a notice to that effect in the factory:
• Provided that no substitution shall be made which will result in any worker working for more than ten
days consecutively without a holiday for a whole day.

8.3 Section 53 - Compensatory holidays

 If a factory or its workers are exempted from the provisions of section 52 due to an order or rule under this
Act, and a worker loses any of the weekly holidays mentioned in section 52 as a result, that worker must
be given compensatory holidays of the same number within the month in which the holidays were due
or within the following 2 months.

8.4 Section 54 - Daily hours

 No adult worker shall be required or allowed to work in a factory for more than nine hours in any day.

8.5 Section 55 - Intervals for rest

 Adult workers in a factory must have their work periods arranged such that no period exceeds 5 hours,
and they must have at least a half-hour rest interval after working for 5 hours.
 After exemption from State Government regarding this provision to any factory, it shall not exceed 6
hours.

8.6 Section 56 - Spread over

 The periods of work of an adult worker inclusive of his intervals for rest shall not spread over more than
10 and half hours in any day.
 However, the Chief Inspector can extend this duration up to 12 hours, provided that specific reasons are
given in writing.

8.7 Section 59 - Extra wages for overtime

 If a worker in a factory works for more than 9 hours in any day or exceeds 48 hours in a week, they are
entitled to overtime wages at a rate twice their ordinary wage rate.
 The “ordinary rate of wages” for this purpose includes basic wages and certain allowances, such as the
cash equivalent of benefits from discounted food grain and other items, which the worker is currently
entitled to. It does not include bonuses or wages for overtime.

8.8 Section 62 - Register of adult workers

 The manager of every factory must maintain a register of adult workers, which must be available to the
Inspector at all times during working hours or when any work is being carried out in the factory.
 This register should contain the following information about each adult worker:
• Name
• Nature of their work
• Group, if applicable
• If the group works on shifts, the specific relay to which the worker is assigned.
• Any other details that may be prescribed

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Concept Check
Q. As per the provisions of the Factories Act, 1948, what is the maximum spread over duration?
A. 9.5 hours
B. 8.5 hours
C. 11.5 hours
D. 10.5 hours

Ans: D

9 Employment of Young Persons

9.1 Section 67 - Prohibition of employment of young children
 Children who have not reached the age of 14 are not permitted to work in any factory.

9.2 Section 68 - Non-adult workers to carry tokens

 A child who has completed 14 years of age or an adolescent cannot work in any
factory unless the following conditions are met:
• if Certificate of Fitness has been granted to the child or adolescent.
• The child or adolescent, while at work, carries a token that reference to the
Certificate of Fitness.

9.3 Section 69 - Certificates of fitness

 A certifying surgeon, upon request from a young person, their guardian, or the factory manager, examines
and determines fitness for factory work.
 They can issue or renew fitness certificates for young person and adults.
 Certificates are valid for 12 months, may have conditions, and can be revoked if the holder becomes unfit.

9.4 Section 70 - Effect of certificate of fitness granted to adolescent

 An adolescent with a Certificate of Fitness to work in a factory shall be deemed to be an adult.
 An adolescent who has not been granted a Certificate of Fitness to work in a factory shall be deemed to
be a child.
 A female adolescent or a male adolescent under 17 years of age having a Certificate of Fitness cannot
work in a factory except between 6 A.M. and 7 P.M.

9.5 Section 71 - Working hours for children

 Children:
• Cannot work for more than 4 and ½ hours a day.
• Are forbidden to work at night. “Night” shall mean a period of at least twelve consecutive hours which
shall include the interval between 10 P.M. and 6 A.M.
 Children’s work periods:
• Limited to two shifts, each not exceeding 5 hours.
• Each child shall be employed in only one of the relays which shall not, except with the previous

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permission in writing of the Chief Inspector, be changed more frequently than once in a period of
thirty days.
 Children cannot work in one factory on a day they have already worked in another.
 No female child shall be required or allowed to work in any factory except between 8 A.M. and 7 P.M.

10 Annual Leave with Wages

10.1 Section 79 - Annual leave with wages
 Any factory worker who has worked for 240 days or more in a
calendar year is entitled to leave with wages in the following
calendar year. The number of days of leave is calculated as
follows:
• An adult worker is entitled to 1 day of leave for every 20
days of work performed in the previous calendar year.
• A child worker is entitled to 1 day of leave for every 15 days
of work performed in the previous calendar year.
 A worker whose service commences otherwise than on the first
day of January shall be entitled to leave with wages if he has worked for 2/3 of the total number of days
in the remainder of the calendar year.
 When calculating leave under this section:
• A fraction of leave of half a day or more is considered as one full day’s leave.
• A fraction of less than half a day is ignored.
 If a worker does not use all their allowed leave in a calendar year, the unused days are carried over to the
next year, with some limitations:
• Adults can carry forward up to 30 days.
• Children can carry forward up to 40 days.
• However, if a worker applied for leave but was refused (in accordance with specific schemes), there is
no limit to the leave they can carry forward.
 A worker can request leave in writing from the factory manager at least 15 days before the desired leave
start date.
• For those in public utility services, this notice period is extended to 30 days.
• Workers are limited to taking leave a maximum of 3 times a year.

11 Wages during the leave period

11.1 Section 80 - Wages during leave period
 A worker is entitled to wages for their leave at a rate equal to their daily average earnings from the days
he actually worked during the preceding month.
• This includes dearness allowance and the cash equivalent of benefits from discounted food grain and
other items.
• Overtime and bonus paid, if any, in the preceding month are excluded.

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Concept Check
Q. As per the provisions of Factories Act, 1948, where a worker works for more than 48 hours in a week,
wages at the rate of _______ his ordinary rate of wages shall be paid.
A. equal
B. thrice
C. twice
D. None of the above

Ans: C

12 Schedules of Factories Act, 1948

Schedules Matters

First Schedule List of Industries Involving Hazardous Processes

Second Schedule Permissible Levels of Certain Chemical Substances in Work Environment

Third Schedule List of Notifiable Diseases

Fourth Schedule List of Compoundable Offences

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Industrial Disputes Act, 1947

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1 Introduction
Industry refers to a particular category or field of economic activity in which businesses and organizations
produce goods or provide services. It can encompass various sectors
such as manufacturing, technology, healthcare, finance, agriculture, and
more.

 Industries are typically characterized by specific types of products

or services they offer and often involve a network of companies,
workers, and processes working together to meet market demand.
 Certainly, in the Industrial setup there will be circumstances,
events, and issues that lead to conflicts or disagreements between
employers and employees (or groups of employees).
 These disputes can arise due to various reasons related to employment conditions, wages, benefits, work
environment, job security, processes, and management practices etc.
 Such disagreements and disputes can disrupt the normal functioning of a workplace or industry,
impacting productivity, employee morale, and overall business operations. Thus, resolving these disputes
became inevitable for the industries, which want overall growth in their business operations.
 Resolving industrial disputes requires careful negotiation, mediation, and sometimes legal intervention
to arrive at a fair and mutually agreeable resolution that balances the interests of both parties.

In this regard Industrial Disputes Act was enacted by the Government of India in the year 1947, but prior
to the enactment of the Industrial Disputes Act as Central legislation for settlement of industrial disputes,
industrial disputes were settled as per the provisions of the Trade Disputes Act 1929.

 However, several shortcomings were revealed in exercising the various provisions of the Trade Disputes
Act 1929.
 Accordingly, the Industrial Disputes Bill, 1946 was introduced in the legislature and was referred to the
Select Committee.
 Based on the recommendations of the Select Committee, amendments were made in the original bill and
the legislature passed the Industrial Disputes Bill, 1947.

Industrial Disputes Bill, 1946 received the assent of the President and came on the Statute Book on 11th
March 1947, and the Industrial Disputes Act, 1947 came into force on and from 1st April 1947.

2 Objective
The main objective of the Industrial Disputes Act 1947 is to make provision for the investigation and
settlement of industrial disputes. Objective can be interpreted in other dimensions which are as follows:
 To promote measures establishing cordial industrial relations between employees and employers.
 To minimize the differences and solve the disputes through settlement machineries.
 To provide suitable machinery for investigation and find settlement for industrial disputes.
 To prevent illegal strikes and lockouts by employees and employers.
 To establish rules and regulation to provide relief to workmen for layoffs, retrenchments.
 To set guidelines for fair labour practices.
 To promote collective bargaining.

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3 Important Provisions
3.1 Section 2 – Important Definitions
 Average Pay: It means the average of the wages payable to a workman:
• In the case of monthly paid workman, in the 3 complete calendar months
• In the case of weekly paid workman, in the 4 complete weeks
• In the case of daily paid workman, in the 12 full working days
Preceding the date on which the average pay becomes payable if the workman had worked for three
complete calendar months or four complete weeks or twelve full working days and where such calculation
cannot be made, the average pay shall be calculated as the average of the wages payable to a workman
during the period he actually worked.
 Award: It means an interim or a final determination of any industrial dispute or of any question relating
to industrial dispute by any Labour Court, Industrial Tribunal or National Industrial Tribunal and includes
an arbitration award made under section 10A.

Additional Information
Section 10A talks about voluntary reference of disputes to arbitration.

 Industrial Disputes: It means:

• Any dispute or difference
 between employers and employers,
 between employers and workmen,
 between workmen and workmen,
which is connected with the
 Employment or non-employment
 The terms of employment
 With the conditions of labour, of any person.
 Lock-out: It means the temporary closing of a place of employment, or the
suspension of work, or the refusal by an employer to continue to employ any
number of persons employed by him.
 Closure: It means the permanent closing down of a place of employment or part
of the place of employment.
 Strike: It means a cessation of work by a body of persons employed in any industry acting in combination
or a concerned refusal, or a refusal under a common understanding, of any number of persons who are or
have been so employed to continue to work or to accept employment.
 Lay-off: It means the failure, refusal, or inability of an employer on account of shortage of coal, power or
raw materials or the accumulation of stocks or the break-down of machinery or natural calamity or for
any other connected reason to give employment to a workman whose name is borne on the muster rolls
of his industrial establishment and who has not been retrenched.
 Retrenchment: In the Industrial Dispute Act 1947 “Retrenchment” means the termination by the employer
of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way
of disciplinary action, but does not include:
• Voluntary retirement of the workman; or

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• Retirement of the workman on reaching the age of superannuation if

the contract of employment between the employer and the workman
concerned contains a stipulation in that behalf; or
• Termination of the service of the workman as a result of the non-
renewal of the contract of employment between the employer
and the workman concerned on its expiry or of such contract being
terminated under a stipulation in that behalf contained therein; or
• Termination of the service of a workman on the ground of continued ill-health
 Wages: It means all remuneration capable of being expressed in terms of
money, which would, if the terms of employment, expressed or implied,
were fulfilled, be payable to a workman in respect of his employment or
of work done in such employment, and includes:
• Such allowances (including dearness allowance) as the workman is
for the time being entitled to
• The value of any house accommodation, or of supply of light, water,
medical attendance or other amenity or of any service or of any concessional supply of foodgrains or
other articles
• Any travelling concession
• Any commission payable on the promotion of sales or business or both

But does not include:

• Any bonus
• Any contribution paid or payable by the employer to any pension fund or provident fund or for the
benefit of the workman under any law for the time being in force.
• Any gratuity payable on the termination of his service

3.2 Section 2A - Dismissal, etc., of an individual workman to be deemed to be an industrial dispute

 “Where any employer discharges, dismisses, retrenches, or otherwise terminates the services of an
individual workman, any dispute or difference between that workman and his employer connected with, or
arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial
dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute.”
 “Any such workman may, make a direct application to the Labour Court or Tribunal for adjudication of
the dispute after the expiry of 45 days from the date he has made the application to the Conciliation
Officer of the appropriate Government for conciliation of the dispute”.
 “The application shall be made to the Labour Court or Tribunal before the expiry of 3 years from the date
of discharge, dismissal, retrenchment or otherwise termination of service”.
 In simple language the Act want to say that, if a worker is let go or fired by their employer, and there is
a disagreement or problem between the worker and the employer about this situation, it is treated as
a special kind of argument called an “Industrial dispute”, this is true even if no other workers or worker
groups are involved in the argument.
 The worker has the right to directly ask a special court (called the Labour Court or Tribunal) to decide who
is right and who is wrong in this argument. But, before going to the court, the worker must first talk to a
mediator (Conciliation Officer) appointed by the government, and if things do not get sorted out within
45 days, then the worker can go to the court.
 This request to the court must be made within 3 years from the time the worker was let go or fired.

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3.3 Authorities Under This Act

3.3.1 Section 3 - Works Committee
 “In the case of any industrial establishment in which 100 or more
workmen are employed or have been employed on any day in the
preceding 12 months,” the appropriate Government may by general
or special order require the employer to constitute in the prescribed
manner a Works Committee consisting of representatives of employers
and workmen engaged in the establishment with the number of
representatives of workmen on the Committee shall not be less than
the number of representatives of the employer.
 Duties of Works Committee:
• To promote measures for securing and preserving amity and good relations between the employer
and workmen
• To comment upon matters of their common interest or concern and endeavour to compose any
material difference of opinion in respect of such matters.

3.3.2 Section 4 - Conciliation officers

 Generally, Conciliation officers are mediators or facilitators appointed
by the government to help resolve disputes between employers and
employees in workplaces or industries.
• Their role is to assist both parties in finding common ground and
reaching an agreement through negotiation and discussion, without
going to court.
• Conciliation officers aim to promote understanding, cooperation,
and a peaceful resolution to conflicts, benefiting both workers and employers.
 In Industrial Disputes Act 1947, the appropriate Government may, by notification in the Official Gazette,
appoint such a number of persons as it thinks fit, to be conciliation officers.
 Their duty is to mediate in and promote the settlement of industrial disputes.
 A conciliation officer may be appointed for a specified area or for specified industries in a specified area
or for one or more specified industries and either permanently or for a limited period.

3.3.3 Section 5 - Board of Conciliation

 In the Industrial Disputes Act 1947, the appropriate Government
may constitute a Board of Conciliation for promoting the settlement
of an industrial dispute.
 Composition:
• Chairman
• 2 or 4 other members, as the appropriate Government thinks
fit.
• The chairman shall be an independent person and the other
members shall be persons appointed in equal numbers to represent the parties to the dispute and
any person appointed to represent a party shall be appointed on the recommendation of that party.
• A Board, having the prescribed quorum, may act notwithstanding the absence of the chairman or any
of its members or any vacancy in its number.

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3.3.4 Section 6 - Courts of Inquiry

 “The appropriate Government may constitute a Court of Inquiry for inquiring into any matter appearing
to be connected with or relevant to an industrial dispute.”
 Composition:
• One independent person or of such number of independent persons as the appropriate Government
may think fit.
• Where a Court consists of two or more members, one of them shall be appointed as the chairman.
 “A Court, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of
its members or any vacancy in its number.”

3.3.5 Section 7 - Labour Courts

 The appropriate Government may constitute one or more Labour Courts for the
adjudication of industrial disputes relating to any matter specified in the Second
Schedule and for performing such other functions as may be assigned to them under
this Act.

THE SECOND SCHEDULE

MATTERS WITHIN THE JURISDICTION OF LABOUR COURTS
1. The propriety or legality of an order passed by an employer under the standing orders.
2. The application and interpretation of standing orders.
3. Discharge or dismissal of workmen including re-instatement of, or grant of relief to, workmen
wrongfully dismissed.
4. Withdrawal of any customary concession or privilege
5. Illegality or otherwise of a strike or lock-out; and
6. All matters other than those specified in the Third Schedule

 Composition: Labour Court Consists of 1 person only to be appointed by the appropriate Government.
 Qualification: A person shall not be qualified for appointment as the presiding officer of a Labour Court,
unless:
• He is, or has been, a Judge of a High Court
• He has, for a period of not less than 3 years, been a District Judge or an Additional District Judge
• He has held any judicial office in India for not less than 7 years.
• He has been the presiding officer of a Labour Court constituted under any Provincial Act or State Act
for not less than 5 years.
• He is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State
Labour Department, having a degree in law and at least 7 years’ experience in the labour department
including 3 years of experience as Conciliation Officer Officer
• He is an officer of Indian Legal Service in Grade III with 3 years’ experience in the grade.

3.3.6 Section 7A – Tribunals

 The appropriate Government may, by notification in the Official Gazette, constitute
one or more Industrial Tribunals for the adjudication of industrial disputes relating to
any matter, whether specified in the Second Schedule or the Third Schedule and for

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performing such other functions as may be assigned to them under this Act.

THE THIRD SCHEDULE

MATTERS WITHIN THE JURISDICTION OF INDUSTRIAL TRIBUNALS
1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalisation;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.

 Composition: It consists of 1 person only to be appointed by the appropriate Government.

 Qualifications
• He is, or has been, a Judge of a High Court
• He has, for a period of not less than 3 years, been a District Judge or an Additional
• District Judge
• He is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State
Labour Department, having a degree in law and at least 7 years’ experience in the labour department
including three years of experience as Conciliation Officer
• He is an officer of Indian Legal Service in Grade III with 3 years’ experience in the grade.
 The appropriate Government may appoint 2 persons as assessors to advise the Tribunal in the proceeding
before it.

3.3.7 Section 7B - National Tribunals

 The Central Government may, constitute one or more National Industrial Tribunals for the adjudication of
industrial disputes which, involve questions of national importance or are of such a nature that industrial
establishments situated in more than one State are likely to be interested in, or affected by, such disputes.
 Composition: It consists of 1 person only to be appointed by the Central Government
 Qualification: A person shall not be qualified for appointment as the presiding officer of a National Tribunal
unless he is, or has been, a Judge of a High Court.
 The Central Government may appoint 2 persons as assessors to advise the National Tribunal in the
proceedings before it.

3.4 Section 7C - Disqualifications for the presiding officers of Labour Courts, Tribunals and National
Tribunals
 A person to be appointed as presiding officer of a Labor Court, Tribunal, or National Tribunal must be
independent and not exceed the age of 65.

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3.5 Section 9A - Notice of Change

 An employer cannot change the work conditions listed in the Fourth Schedule for employees without
following these steps:
• Giving proper notice about the proposed change.
• Waiting period for 21 days after the notice.

3.6 Section 9C - Setting up of Grievance Redressal Machinery/Committee

 Every industrial establishment employing 20 or more workmen shall
have 1 or more Grievance Redressal Committee for the resolution of
disputes arising out of individual grievances.
 Composition:
• Consist of equal number of members from the employer and the
workmen
• The chairperson of the Grievance Redressal Committee shall be selected from the employer and from
among the workmen alternatively on rotation basis every year.
• The total number of members shall not exceed more than 6.
 Provided that there shall be 1 woman member if, the Grievance Redressal Committee has 2
members and in case the number of members is more than two, the number of women members
may be increased proportionately.
 The setting up of Grievance Redressal Committee shall not affect the right of the workman to raise
industrial dispute on the same matter under the provisions of this Act.
 The Grievance Redressal Committee may complete its proceedings within 30 days on receipt of a written
application by or on behalf of the aggrieved party.
 The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an
appeal to the employer against the decision of Grievance Redressal Committee and the employer shall,
within 1 month from the date of receipt of such appeal, dispose off the same and send a copy of his
decision to the workman concerned.

3.7 Section 10 - Reference of disputes to Boards, Courts, or Tribunals

 Where the appropriate Government is of opinion that any industrial dispute exists or is apprehended, it
may at any time:
• Refer the dispute to a Board for promoting a settlement.
• Refer the dispute to a Court for inquiry.
• Refer the dispute if it relates to any matter specified in the Second Schedule, to a Labour Court for
adjudication. Provided that if the dispute involves matters listed in the Third Schedule and is unlikely
to impact over 100 workers, the government can choose to refer it to a Labor Court.
• Refer the dispute if it relates to any matter specified in the Second Schedule or the Third Schedule, to
a Tribunal for adjudication.
 An order referring an industrial dispute to a Labour Court, Tribunal or National Tribunal under this
section shall specify the period within which such Labour Court, Tribunal or National Tribunal shall submit
its award on such dispute to the appropriate Government. Provided that where such industrial dispute is
connected with an individual workman, no such period shall exceed 3 months.

3.8 Section 10A - Voluntary reference of disputes to arbitration

 If an industrial dispute is present or anticipated and both the employer and workmen agree to settle it

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through arbitration, they can do so through a written agreement.

• This can occur before the dispute has been formally referred to a Labour Court, Tribunal, or National
Tribunal under section 10.
• The arbitration reference will be made to the person or persons specified in the agreement, including
the presiding officer of a Labor Court, Tribunal, or National Tribunal, serving as an arbitrator or
arbitrators.
 A copy of the arbitration agreement shall be forwarded to the appropriate Government and the conciliation
officer and the appropriate Government shall, within 1 month from the date of the receipt of such copy,
publish the same in the Official Gazette.
 When an industrial dispute is referred to arbitration and a notification is issued under sub-section (3A), the
appropriate Government can issue an order to prohibit the continuation of any ongoing strike or lock-
out related to that dispute on the date of the reference.

3.9 Section 10B – Submission

 Any employer and a Representative Union or, in the absence of any registered Representative Union,
any other Union which is representative of employees may, by a written agreement, agree to submit any
present or future industrial dispute or class of such disputes to the arbitration of any person whether such
arbitrator is named in such agreement or not. Such an agreement shall be called a submission.
 A copy of every such submission shall be sent to the Registrar who shall register it in the register to be
maintained for the purpose and shall publish it in such manner as may be prescribed.

3.10 Section 10C - Submission when revocable

 Every submission shall in the absence of any provision to the contrary contained therein be irrevocable:
Provided that a future dispute arbitration agreement can be cancelled by either party giving a 3-month
written notice to the other party.

3.11 Section 10D - Proceedings in arbitration

 The proceedings in arbitration shall be in accordance with the provisions of the
Arbitration Act, 1940 in so far as they are applicable and the powers which are exercisable
by a Civil Court under the said provisions shall be exercisable by the Industrial Tribunal.

3.12 Section 10G - Dispute to be referred to Industrial Tribunal if no arbitrator appointed

 If no provision has been made in any submission for the appointment of an arbitrator or where by reason
of any circumstances no arbitrator is appointed, such dispute may be referred by the State Government
for adjudication by the Industrial Tribunal.

3.13 Section 10H - State Government may refer industrial dispute to Industrial Tribunal for adjudication
 When the State Government makes a reference to the Industrial Tribunal for adjudication of any
industrial dispute, any submission or any award of an arbitrator with regard to that industrial dispute
shall stand as cancelled.

3.14 Section 10J - Completion of proceeding

 The arbitration proceeding shall be deemed to have completed when the award is published.

3.15 Section 17 - Publication of reports and awards

 Every arbitration award and every award of a Labour Court, Tribunal or National Tribunal shall be

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published, within a period of 30 days from the date of its receipt by the appropriate Government.

3.16 Section 17A - Commencement of the award

 An award (including an arbitration award) shall become enforceable on the expiry of 30 days from the
date of its publication.
 On public grounds affecting national economy or social justice to give effect to the whole or any part of the
award, the appropriate Government, or as the case may be, the Central Government may, by notification
in the Official Gazette, declare that the award shall not become enforceable after the expiry of the said
period of 30 days.
 Within 90 days of the award being published under section 17, the Appropriate Government or the Central
Government can either reject or change the award. If rejected/modified, the award becomes enforceable
after 15 days of being laid before the Legislature/Parliament.
• If no order is made, it becomes enforceable after 90 days of publication.
 The award shall come into operation with effect from such date as may be specified therein, but where
no date is so specified, it shall come into operation on the date when the award becomes enforceable.

3.17 Section 19 - Period of operation of settlements and awards

 A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and
if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the
parties to the dispute.
 Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period
is agreed upon, for a period of 6 months from the date on which the memorandum of settlement is
signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the
period aforesaid, until the expiry of 2 months from the date on which a notice in writing of an intention
to terminate the settlement is given by one of the parties to the other party or parties to the settlement.
 An award shall, subject to the provisions of this section, remain in operation for a period of 1 year from
the date on which the award becomes enforceable under section 17A. Provided that the appropriate
Government may reduce the said period and fix such period as it thinks fit. Provided further that the
government can extend the operational period of an award by up to 1 year at a time, but the total
extension cannot exceed 3 years from the date on which it came into operation.

3.18 Section 20 - Commencement and conclusion of proceedings

 A conciliation proceeding commences either when the conciliation officer receives a strike or lock-out
notice under section 22, or when the dispute is referred to a Board by an order, as the case may be.
 A conciliation proceeding shall be deemed to have concluded—
• where a settlement is arrived at, when a memorandum of the settlement is signed by the parties to
the dispute.
• where no settlement is arrived at, when the report of the conciliation officer is received by the
appropriate Government or when the report of the Board is published, as the case may be; or
• when a reference is made to a Court, Labour Court, Tribunal or National Tribunal during the pendency
of conciliation proceedings.
 The timeline of proceedings before an arbitrator or a Labor Court, Tribunal, or National Tribunal begins
with the reference of the dispute for arbitration or adjudication, as the case may be, and concluded
when the award becomes enforceable.

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3.19 Section 22 - Prohibition of strikes and lockouts

 No person employed in a public utility service shall go on strike in breach of contract:
• Without giving to the employer notice of strike within six weeks before striking; or
• Within fourteen days of giving such notice; or
• Before the expiry of the date of strike specified in any such notice as aforesaid;
or
• During the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings.
 No employer carrying on any public utility service shall lock-out any of his
workmen—
• Without giving them notice of lock-out within six weeks before locking out; or
• Within fourteen days of giving such notice; or
• Before the expiry the date of lock-out specified in any such notice as aforesaid; or
• During the pendency of any conciliation proceedings before a conciliation officer and seven days
after the conclusion of such proceedings.

3.20 Section 23 - General prohibition of strikes and lock-outs

 Workers in an industrial establishment and their employers are prohibited from engaging in strike or lock-
out respectively under the following conditions:
• During the pendency of conciliation proceedings before a Board and 7 days after the conclusion of
such proceedings
• During the pendency of proceedings before Labour Court, Tribunal or National Tribunal and 2 months
after the conclusion of such proceedings.
• During the pendency of arbitration proceedings before an arbitrator and 2 months after the
conclusion of such proceedings
• During any period in which a settlement or award is in operation.
 A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal
lock-out shall not be deemed to be illegal.

3.21 Section 25C - Right of workmen laid-off for compensation

 If a workman (excluding badli or casual workers) on the muster rolls of
an industrial establishment, with at least 1 year of continuous service,
is laid off whether continuously or intermittently, the employer must
provide compensation.
 The compensation, except for intervening weekly holidays, should
amount to 50% of the combined basic wages and dearness allowance
that the workman would have received if had not been laid off:
• If a workman experiences a total lay-off exceeding 45 days within a 12-month period, compensation
will not be paid for the period after the expiry of first 45 days if there is a mutual agreement between
the workman and the employer to that effect.

Additional Information
Badli worker – A worker who has been appointed in the place of a permanent worker, who is temporarily
absent.

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3.22 Section 25 E - Workmen not entitled to compensation in certain cases

 No compensation shall be paid to a workman who has been laid-off:
• If he refuses to accept any alternative employment in the same
establishment from which he has been laid-off.
• If he does not present himself for work at the establishment at the
appointed time during normal working hours at least once a day.
• If such laying-off is due to a strike or slowing-down of production on the part of workmen in another
part of the establishment.

3.23 Section 25F - Conditions precedent to retrenchment of workmen

 A workman in any industry, having provided continuous service for at least 1 year with an employer,
cannot be retrenched by that employer until certain conditions are met -
• The workman has been given 1 months’ notice in writing indicating the reasons for retrenchment and
also the period of notice has expired, or the workman has been paid in lieu of such notice, wages for
the period of the notice.
• At the time of retrenchment, the workman must be provided with compensation equal to 15 days’
average pay for each completed year of continuous service, any part thereof in excess of six months.
• Notice in the prescribed manner is served on the appropriate Government.

3.24 Chapter VB - Section 25K - Application of Special Provisions Relating to Lay-Off, Retrenchment and
Closure In Certain Establishments
 The provisions of this Chapter shall apply to an industrial establishment not being an establishment of a
seasonal character or in which work is performed only intermittently in which not less than 100 workmen
were employed on an average per working day for the preceding 12 months.
 If a question arises whether an industrial establishment is of a seasonal character or whether work is
performed therein only intermittently, the decision of the appropriate Government thereon shall be
final.

3.25 Chapter VB - Section 25M - Prohibition of lay-off

 Except for *badli or casual workmen, if a workman’s name is on the muster rolls
of an industrial establishment covered by this Chapter, the employer cannot
lay off the workman without obtaining prior permission from the appropriate
Government or an authority designated by that Government.
 If workmen, excluding *badli or casual workmen, in a mine-based industrial
establishment are laid off due to fire, flood, excess inflammable gas, or explosion,
the employer must, within 30 days of the lay-off’s start, apply in the specified
manner to the appropriate Government or authority for permission to prolong the lay-off.
 If an employer applies for permission to continue a lay-off and the appropriate Government or specified
authority does not communicate their decision within 60 days of the application, the requested permission
will be considered granted once the 60-day period expires.
 An order of the appropriate Government or the specified authority granting or refusing to grant permission
shall, subject to the provisions of be final and binding on all the parties concerned and shall remain in
force for one year from the date of such order.
 The appropriate Government or specified authority has the authority to review its decision to grant or
deny permission for a lay-off. This review can be initiated by the Government itself, the employer, or
any workman. The matter may also be referred to a Tribunal for adjudication if deemed necessary. Where

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a reference has been made to a Tribunal, it shall pass an award within a period of 30 days from the date
of such reference.
 If no application for permission is submitted within the specified timeframe, or if the application is not
made at all, or if the permission for a lay-off is denied, the lay-off will be considered illegal from the date
the workmen were initially laid off. In such cases, the affected workmen are entitled to all benefits as if
they had not been laid off, under the prevailing laws in force.

3.26 Chapter VB - Section 25N - Conditions Precedent to Retrenchment of Workmen

 No workman employed in any industrial establishment to which this Chapter applies, who has been in
continuous service for not less than one year under an employer shall be retrenched by that employer
until –
• the workman has been given three months’ notice in writing indicating the reasons for retrenchment
and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for
the period of the notice; and
• the prior permission of the appropriate Government or such authority as may be specified by that
Government has been obtained on an application made in this behalf.
• If appropriate Government does not communicate the order granting or refusing to grant permission
to the employer within a period of sixty days from the date on which such application is made, the
permission applied for shall be deemed to have been granted on the expiration of the said period of
sixty days.
• An order of the appropriate Government or the specified authority granting or refusing to grant
permission shall be final and binding on all the parties concerned and shall remain in force for one
year from the date of such order.
• Where no application for permission or where the permission for any retrenchment has been refused,
such retrenchment shall be deemed to be illegal from the date on which the notice of retrenchment
was given to the workman and the workman shall be entitled to all the benefits under any law for the
time being in force as if no notice had been given to him.

3.27 Section 26 - Penalty for illegal strikes and lock-out

 Any workman who initiates, carries on, or takes actions to advance an illegal
strike under this Act can be subject to penalties. The penalties may include
imprisonment for up to 1 month, a fine of up to 50 rupees, or both.
 An employer who initiates, continues, or takes actions to advance an illegal lock-
out under this Act can face penalties. These penalties may involve imprisonment
for a duration of up to 1 month, a fine of up to 1000 rupees, or both.

3.28 Section 27 - Penalty for instigation, etc

 Any person who instigates or incites others to take part in, or acts in furtherance of, a strike or lock-out
which is illegal under this Act, shall be punishable with imprisonment up to 6 months, or with fine up to
1000 rupees, or with both.

3.29 Section 28 - Penalty for giving financial aid to illegal strikes and lock-outs
 Any person who knowingly spends or applies money in support of any illegal strike or lock-out shall be
punishable with imprisonment up to 6 months, or with fine up to 1000 rupees, or with both.

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3.30 Section 33 - Conditions of service, etc., to remain unchanged under certain circumstances during
pendency of proceedings
 No employer shall, during the pendency of any such proceeding in respect of an industrial dispute, take
any action against any protected workman concerned in such dispute.
 In every establishment, the number of workmen to be recognized as protected workmen shall be 1% of
the total number of workmen employed therein subject to a minimum number of 5 protected workmen
and a maximum number of 100 protected workmen.
 “Protected workman,” in relation to an establishment, means a workman who, being a member of
the executive or other office bearer of a registered trade union connected with the establishment, is
recognized as such in accordance with rules made in this behalf.

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The Child And Adolescent Labour

(Prohibition and Regulation) Act,
1986

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1 History
Introduction
Background and Evolution: The issue of child labour has been a persistent
problem, reflecting the complex interplay between economic hardship,
cultural norms, and the need for education. Efforts to address child labour
began gaining significant momentum in the late 19th and early 20th
centuries, as industrialization intensified the demand for cheap, exploitable
labour, often at the cost of children’s health, education, and well-being.
Legal and Social Movements: The fight against child labour has involved a
combination of legal reforms, social activism, and international agreements
aimed at protecting children from exploitation while ensuring their right to
education and development.

Global Scenario
International Frameworks: Over the years, various international conventions and agreements have been
established to combat child labour. The International Labour Organization (ILO) has been at the forefront,
with conventions such as the Minimum Age Convention, 1973 (No. 138) and the Worst Forms of Child Labour
Convention, 1999 (No. 182) setting the standards for the abolition of child labour and immediate action to
eliminate its worst forms.
Global Efforts and Challenges: Despite significant progress in many countries, child labour remains a global
challenge, especially in regions plagued by poverty, conflict, and lack of access to education. Efforts to eradicate
child labour are often hampered by economic realities, cultural practices, and insufficient enforcement of
existing laws.

Indian Scenario
Legislative Developments: In India, the concern over child labour led to the enactment of “The Child and
Adolescent Labour (Prohibition and Regulation) Act” in 1986, which has undergone several amendments to
strengthen the framework against child exploitation. This Act prohibits the employment of children below
a certain age in various occupations and processes and regulates the working conditions of adolescents in
employment.
Implementation and Impact: The implementation of the Act, coupled with initiatives like the Right to
Education Act, 2009, aims to reduce child labour by improving access to education. Despite these measures,
child labour in India persists, especially in informal sectors and rural areas, reflecting the need for continued
efforts in enforcement, awareness, and socio-economic development.
Future Directions: Moving forward, the focus in India remains on closing the gap between legislation and
enforcement, enhancing social welfare programs to support vulnerable families, and ensuring that education
is accessible to all children, thereby addressing the root causes of child labour.
The history of “The Child and Adolescent Labour (Prohibition and Regulation)” reflects a broader global and
national commitment to protect children’s rights and promote their well-being, signifying an ongoing journey
towards eradicating child labour.

2 Objective
 To prohibit the engagement of children in all occupations
 To prohibit the engagement of adolescents in hazardous occupations and processes and the matters
connected with or incidental to it.

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PART I
3 Section 1 – Application
 It extends to the whole of India.

4 Section 2 - Definitions
 “Adolescent” means:
• A person who has completed his 14th year of age but has not completed
his 18th year
 “Child” means:
• A person who has not completed his 14th year of age or such age as may
be specified in the Right of Children to Free and Compulsory Education
Act, 2009, whichever is more

 “Day” means:
• A period of 24 hours beginning at mid-night
 “Week” means:
• A period of 7 days beginning
at midnight on Saturday night
or such other night as may
be approved in writing for a
particular area by the Inspector
 “Establishment” includes:
• A shop, commercial establishment, workshop, farm, residential hotel, restaurant, eating house,
theatre or other place of public amusement or entertainment.
 “Family” in relation to an occupier, means:
• The individual, the wife or husband, as the case may be, of such individual, and their children, brother
or sister of such individual
 “Occupier,” in relation to an establishment or a workshop, means:
• The person who has the ultimate control over the affairs of the establishment or workshop

PART II
5 Section 3 - Prohibition of employment of children in any occupation and process
 No child shall be employed or permitted to work in any occupation or process
 Nothing above mentioned shall apply where the child:
• Helps his family or family enterprise, which is other than any hazardous occupations or processes set
in the Schedule, after his school hours or during vacations

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• Works as an artist in an audio-visual entertainment industry, including advertisement, films, television

serials or any such other entertainment or sports activities
 Except the circus
• However, no such work under this clause shall effect the school education of the child
 For the purpose of this section,

6 Section 3A - Prohibition of employment of adolescents in certain hazardous occupations

and processes
 No adolescent shall be employed or permitted to work in any of the hazardous occupations or processes
set forth in the Schedule

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 However, the Central Government may specify the nature of the non-hazardous work to which an
adolescent may be permitted to work

7 Section 4 - Power to amend the Schedule

 The Central Government, after giving not less than 3 months’ notice may add to, or omit from the Schedule
any hazardous occupation or process
• Following this, the Schedule will be considered as having been amended accordingly

8 Section 5 - Technical Advisory Committee

 The Central Government may, constitute an advisory committee to be called the Technical Advisory
Committee
• To advise the Central Government for the purpose of
addition of occupations and processes to the Schedule.
 Composition:
• The Committee shall consist of a Chairman and such other
members not exceeding 10, as may be appointed by the
Central Government
 The Committee shall meet often and shall have power to
regulate its own procedure
 The Committee may constitute 1 or more sub-committees and
may appoint any such sub-committee, whether generally or
for the consideration of any particular matter, any person who
is not a member of the Committee.

PART III
REGULATION OF CONDITIONS OF WORK OF ADOLESCENTS

9 Section 6 - Application of Part

 The provisions of this Part shall apply to an establishment or a class of establishments in which none
of the occupations or processes referred in the Schedule is carried on.

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10 Section 7 - Hours and period of work

 No adolescent shall be required or permitted to work in any establishment
in excess hours as may be prescribed for such establishment or class of
establishments.
 The period of work on each day shall be so fixed that no period shall exceed
3 hours
• And that no adolescent shall work for more than 3 hours before he has
had an interval for rest for at least 1 hour.
 The period of work of an adolescent shall be so arranged that inclusive of his
interval for rest, mentioned above it shall not be spread over more than 6
hours, including the time spent in waiting for work on any day.
 No adolescent shall be permitted or required to work between 7 p.m. and 8 a.m
 No adolescent shall be required or permitted to work overtime
 No adolescent shall be required or permitted to work in any establishment on any day on which he has
already been working in another establishment.

11 Section 8 - Weekly holidays

 Every adolescent employed in an establishment shall be allowed in each week,
a holiday of one whole day,
• The day shall be specified by the occupier in a notice permanently exhibited
in a conspicuous place in the establishment
• And the day so specified shall not be altered by the occupier more than once
in 3 months

12 Section 9 - Notice to Inspector

 Every occupier in relation to an establishment in which an adolescent was employed or permitted to work
immediately before the date of commencement (beginning) of this Act in relation to such establishment
shall,
• Within a period of 30 days from such commencement (beginning), send to the Inspector within whose
local limits the establishment is situated, a written notice containing the following particulars, namely:

Serial Number Particulars

a Name and Situation of the Establishment

b Name of the Person in Actual Management of the Establishment

c Address to Which Communications Relating to the Establishment Should Be Sent
d Nature of the Occupation or Process Carried on in the Establishment

 Every occupier, in relation to an establishment, who employs, or permits to

work, any adolescent after the date of commencement (beginning) of this Act
in relation to such establishment shall:
• within a period of 30 days from the date of such employment, send to the
Inspector within whose local limits the establishment is situated, a written
notice containing the particulars as mentioned above.

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 Provisions given in Section 7, Section 8, and Section 9 shall not apply to any establishment:
• Where any process is carried on by the occupier with the aid of his family or to any school established
by, or receiving assistance or recognition from, the Government.

13 Section 10 - Disputes as to age

 If any question arises between an Inspector and an occupier as to the age of any
adolescent who is employed or is permitted to work by him in an establishment,
• The question shall, in the absence of a certificate as to the age of such
adolescent granted by the prescribed medical authority, be referred by the
Inspector for decision to the prescribed medical authority.

14 Section 11- Maintenance of register

Serial
 Register shall be maintained by every occupier Details
Number
in respect of adolescent employed or permitted
The name and date of birth of every adolescent
to work in any establishment, Which should a
so employed or permitted to work
be available for inspection by an Inspector at
Hours and periods of work of any such adolescent
all times during working hours or when work b
and the intervals of rest to which he is entitled
is being carried on in any such establishment,
c The nature of work of any such adolescent
showing the details mentioned in the box above.
d Such other particulars as may be prescribed

15 Section 13 - Health and safety

 The appropriate Government may make rules for the health and safety of the adolescent employed or
permitted to work in any establishment or class of establishments.
 The said rules may provide for all or any of the following matters, namely:

Item Details Item Details

Instructions, training, and supervision in
Cleanliness in the place of work and its
a m relation to employment of adolescent on
freedom from nuisance
dangerous machines
b Disposal of wastes and effluents n Device for cutting off power

c Ventilation and temperature o Self-acting machines

d Dust and fume p Easing of new machinery
e Artificial humidification q Floor, stairs and means of access
f Lighting r Pits, sumps, openings in floors, etc.
g Drinking water s Excessive weights
h Latrine and urinals t Protection of eyes
i Spittoons u Explosive or inflammable dust, gas, etc.
j Fencing of machinery v Precautions in case of fire
k Work at or near machinery in motion w Maintenance of buildings
Employment of adolescent on dangerous
l x Safety of buildings and machinery
machines

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PART IV
MISCELLANEOUS

16 Section 14A - Offences to be Cognizable

 Despite anything contained in the Code of Criminal Procedure, 1973, any
offence committed by an employer and punishable under section 3 or
section 3A shall be cognizable.

17 Section 14B - Child and Adolescent Labour Rehabilitation Fund

 The appropriate Government shall constitute a Fund in every district or for two or more districts to be
called the Child and Adolescent Labour Rehabilitation Fund
• To which the amount of the fine realized from the employer of the child and adolescent, within the
jurisdiction of such district or districts, shall be credited.
 The appropriate Government shall credit an amount of ₹15,000 to the Fund for each child or adolescent
for whom the fine amount has been credited mentioned above.
 The amount credited to the Fund shall be deposited in such banks or invested in such manner, as the
appropriate Government may decide
 The amount deposited or invested, and the interest accrued on it, shall be paid to the child or adolescent
in whose favour such amount is credited

18 Section 17A - District Magistrate to implement the provisions

 The appropriate Government may confer such powers and impose such duties on a District Magistrate,
• To ensure that the provisions of this Act are properly carried out
• And the District Magistrate may specify the officer, subordinate to him, who shall exercise all or any
of the powers, and perform all or any of the duties, so conferred or imposed
 The local limits within which such powers or duties shall be carried out by the officer as may be
prescribed.

19 Section 17B - Inspection and monitoring

 The appropriate Government shall make or cause to be made a periodic inspection of the places at which
the employment of children is prohibited and hazardous occupations or processes are carried out at such
intervals as it thinks fit, and monitor the issues, relating to the provisions of this Act.

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Concept Check
Q. A dispute relating to the age of an adolescent employed by an employer which arises due to the absence
of any authentic document can be referred to which one of the following authorities for a decision under the
Child and Adolescent Labour (Prohibition and Regulation) Act, 1986?
A. The Prescribed Medical Authority
B. The Labour Court
C. The Inspector appointed under the Act
D. The Appropriate Government

Ans: A

Concept Check
Q. As per the provisions of the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986, Technical
Advisory Committee shall consist maximum of how many members?
A. 15
B. 20
C. 10
D. 25

Ans: C

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Inter-state Migrant Workmen

(Regulation oF Employment and
Conditions of Service) Act, 1979

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1 History
Introduction
The “Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act” is a piece of Indian legislation enacted
in 1979 to address the challenges and protect the rights of laborers
migrating from one state to another within the country.
This law was introduced in response to the exploitation migrant workers
faced, including wage discrepancies, poor working conditions, and a
lack of legal protections. Its primary aim is to regulate the employment
of inter-state migrant workers and ensure fair conditions of service.

Global Scenario
Migration Trends: Globally, labor migration is a significant phenomenon, driven by disparities in economic
opportunities, unemployment, and poverty. Countries with labor shortages in certain sectors often rely on
migrant workers to fill these gaps. This trend is particularly notable in regions such as the Middle East, Europe,
and North America, where migrant workers contribute significantly to construction, agriculture, and services
sectors.
Challenges and International Responses: Migrant workers worldwide face issues similar to those the Indian
legislation seeks to address: exploitation, discrimination, unsafe working conditions, and inadequate legal
protections. International organizations such as the International Labour Organization (ILO) have developed
conventions and recommendations to protect migrant workers, such as the Migration for Employment
Convention (Revised) (No. 97) and the Migrant Workers (Supplementary Provisions) Convention (No. 143).

Indian Scenario
Background and Legislation: In India, the movement of laborers is from rural to urban areas and from
economically less developed states to more developed ones are a common phenomenon. The “Inter-State
Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979,” was enacted against
this backdrop. It provides for the registration of establishments employing inter-state migrant workers, the
licensing of contractors, and the establishment of conditions of employment.
Key Provisions: The Act includes several important provisions aimed at protecting migrant workers:
• Ensuring wages are on par with local workers
• Providing for displacement allowances, journey allowances, and residential accommodations
• Ensuring timely payment of wages
• Offering medical facilities and protective measures in hazardous occupations
Implementation and Challenges: While the Act represents a significant step towards protecting migrant
workers in India, its implementation has faced challenges. These include inadequate enforcement mechanisms,
difficulties in tracking the movement of migrant workers, and the reluctance of employers to comply with
the law. The complexity of India’s labor laws and the existence of multiple regulations with overlapping
jurisdictions further complicate the effective protection of migrant workers’ rights.

In recent years, the Government of India has taken steps to streamline and improve the enforcement of labor
laws, including those protecting migrant workers. The introduction of the “One Nation, One Ration Card”
scheme and the proposal to subsume the Inter-State Migrant Workmen Act into a broader labor code are
examples of such efforts.

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2 Objective of the Act

 To regulate the employment of inter-State migrant workmen
 To provide for their conditions of service and for matters connected with it.

3 Section 1 – Application
 It extends to the whole of India
 It applies:
• To every establishment in which 5 or more inter-State migrant workmen are employed or who were
employed on any day of the preceding 12 months
• To every contractor who employs or who employed 5 or more inter-State migrant workmen on any
day of the preceding 12 months.

4 Section 2 - Definitions
 “Appropriate Government” means:
• Central Government in relation to:
 Any establishment in industry
carried on by or under the authority
of the Central Government or
any such controlled industry as
may be specified by the Central
Government
 Any establishment of any railway,
Cantonment Board, major port,
mine or oil-field
 Any establishment of a banking or insurance company
• State Government in relation to any other establishment

 “Controlled industry” means:

• Any industry the control of which by the Union has been declared by any Central Act

 “Establishment” means:
• Any office or department of the Government or a local authority
• Any place where any industry, trade, business, manufacture, or occupation is carried on

 “Inter-State migrant workman” means:

• Any person who is recruited by a contractor in one State for employment in an establishment in
another State,
 Whether with or without the knowledge of the principal employer in relation to such
establishment

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 “Principal employer” means:

• In relation to any office or department of the Government or a local authority,
 The head of that office, department or authority or such other officer as the Government or the
local authority may specify in this behalf
• In relation to a factory,
 The owner or occupier of the factory
 And a person where he is has been named as the manager of the factory under the Factories Act,
1948
• In relation to a mine,
 The owner or agent of the
mine
 And a person where he
is has been named as the
manager of the mine
• In relation to any other
establishment,
 Any person responsible for
the supervision and control
of the establishment

 “Workman” means:
• Any person employed in or in connection with the work of any establishment:
 To do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for
hire or reward, whether the terms of employment be express or implied,
• But does not include any such person
 Who is employed mainly in a managerial or administration capacity
 Who, being employed in a supervisory capacity, draws wages exceeding ₹500 per mensem/per
month, or exercises the powers and functions mainly of a managerial nature

5 Section 3 - Appointment of registering officers

 The appropriate Government may:
• Appoint officers of Government to be registering officers
• Define the limits, within which a registering officer shall exercise the powers conferred on him

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6 Section 4 - Registration of certain establishments

 Every principal employer of an establishment makes an application to the registering officer, on payment
of fees for the registration of the establishment,
 Within 1 month after the receipt of an application for registration under, the registering officer shall
• If the application is complete in all respects, register the establishment and issue to the principal
employer of the establishment a certificate of registration
• If the application is not so complete, return the application to the principal employer of the
establishment.
 Where within a period of 1 month after the receipt of an application for registration of an establishment
the registering officer does not grant the certificate of registration applied for and does not return the
application
• The registering officer shall, within 15 days of the receipt of an application from the principal employer,
register the establishment and issue to the principal employer a certificate of registration

7 Section 5 - Revocation of registration in certain cases

 If the registering officer is
satisfied that the registration
of any establishment
has been obtained by
misrepresentation or
suppression of any material
fact or that for any other
reason, the registration
has become useless or
ineffective and, therefore,
requires to be revoked,
• The registering officer may, after giving an opportunity to the principal employer of the establishment
to be heard and with the previous approval of the appropriate Government, revoke the registration
and communicate the order to the principal employer.

8 Section 6 - Prohibition against employment of inter-state migrant workmen without

registration
 No principal employer of an establishment shall employ inter-State migrant workmen in the establishment
unless a certificate of registration in respect of such establishment issued is in force:
• However, nothing in this section shall apply to any establishment in which an application for registration
had been made whether originally or on extension is pending before a registering officer.

9 Section 7 - Appointment of licensing officers

 The appropriate Government may
• Appoint such persons, being officers of Government to be licensing officers
• Define the limits, within which a licensing officer shall exercise the jurisdiction and powers conferred on
him.

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10 Section 8 - Licensing of contractors

 No contractor to whom this Act applies shall:
• Recruit any person in a State for the purpose of employing him in any establishment situated in another
State, except under and in accordance with a licence issued in that behalf
• Employ as workmen for the execution of any work in any establishment in any State, persons from
another State except under and in accordance with a licence issued in that behalf
 Licence may contain such conditions including:
• The terms and conditions of the agreement or other arrangement under which the workmen will be
recruited
• The remuneration payable, hours of work, fixation of wages and
• Other essential amenities in respect of the inter-State migrant workmen, as the appropriate Government
may deem fit

11 Section 9 - Grant of licences

 Every application for the grant of a licence shall contain the particulars regarding:
• The location of the establishment,
• The nature of process, operation or work for which inter-State migrant workmen are to be employed
• And such other particulars as may be prescribed
 The licensing officer may make such investigation in respect of the application received and in making any
such investigation, the licensing officer shall follow such procedure as may be prescribed.
 A licence granted shall be valid for the period specified therein and may be renewed from time to time for
such period and on payment of such fees and on such conditions as may be prescribed.

12 Section 10 - Revocation, suspension and amendment of licences

 If the licensing officer is satisfied that:
• A licence granted has been obtained by misrepresentation or suppression of any material fact, or
• The holder of a licence has, without reasonable cause, failed to comply with the conditions subject to
which the licence has been granted or has contravened (broke) any of the provisions or rules of the
this act
 Then, without prejudice (affecting) to any other penalty to which the holder of the licence may be
liable,
o The licensing officer may, after giving the holder of the licence an opportunity to be heard,
revoke the licence or forfeit the security furnished by him a

13 Section 12 - Duties of contractors

 It shall be the duty of every contractor:
• To furnish such particulars to the specified authority in the State from which
 An inter-State migrant workman is recruited and
 In the State which such workman is employed,
o within 15 days from the date of recruitment,
 And if any change occurs in any of the particulars so furnished, such change shall be notified to the

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specified authorities of both the States.

• To issue to every inter-State migrant workman:
 A passbook affixed with a passport size photograph of the workman
indicating in Hindi and English languages, and where the language
of the workman is not Hindi or English, also in the language of the
workman
o Name and place of the establishment wherein the workman is
employed
o Period of employment
o Proposed rates and modes of payment of wages
o Displacement allowance payable
o Return fare payable to the workman on the expiry of the period of his employment
o Deductions made
• To furnish in respect of every inter-State migrant workman who ceases to be employed
 A return to the specified authority in the State from which he is recruited and in the State in which
he is employed,
o Which shall include a declaration that all the wages and other dues payable to the workman
and the fare for the return journey back to his State have been paid
 The contractor shall maintain the pass book up-to-date and ensure that it must be kept with the inter-
State migrant workman concerned

14 Section 13 - Wage rates and other conditions of service of inter-State

migrant workmen
 The wage rates, holidays, hours of work and other conditions of service of an inter-
State migrant workman shall:
• In a case where such workman performs in any establishment, the same or similar
kind of work as is being performed by any other workman in that establishment,
be the same as those applicable to such other workman
• In any other case, be such as may be prescribed by the appropriate Government
 Wages payable to an inter-State migrant workman shall be paid in cash.

15 Section 14 - Displacement allowance

 The contractor shall pay to every inter-State
migrant workman at the time of recruitment,
a displacement allowance equal to 50% of the
monthly wages payable to him or 75 rupees,
whichever is higher
 The amount paid to a workman as displacement
allowance shall not be refundable and shall be
in addition to the wages or other amounts
payable to him.

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16 Section 15 - Journey allowance, etc

 A journey allowance of a sum not less
than the fare from the place of residence
of the inter-State migrant workman in his
State to the place of work in the other
State
• Shall be payable by the contractor to
the workman both for the outward and
return journeys and such workman
shall be entitled to payment of wages
during the period of such journeys as if
he were on duty.

17 Section 16 – Other facilities

 It shall be the duty of every contractor employing inter-State migrant workmen in connection with the
work of an establishment to which this Act applies:
• To ensure regular payment of wages to such workmen
• To ensure equal pay for equal work irrespective of sex
• To ensure suitable conditions of work to such workmen
• To provide and maintain suitable residential accommodation to
such workmen during the period of their employment
• To provide the prescribed medical facilities to the workmen,
free of charge
• To provide such protective clothing to the workmen as may be
prescribed
• To report to the specified authorities of both the States and
also the next of kin of the workman in case of fatal accident or
serious bodily injury to any such workman

18 Section 17 - Responsibility for payment of wages

 A contractor shall be responsible for payment of wages to each inter-State migrant workman employed
by him and such wages shall be paid before the expiry of such period as may be prescribed
 Every principal employer shall nominate a representative duly authorised by him to be present at the
time of disbursement of wages by the contractor and it shall be the duty of representative to certify the
amounts paid as wages
 It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorised
representative of the principal employer
 In case the contractor fails to make payment of wages within the prescribed period or makes short
payment,
• Then the principal employer shall be liable to make payment of the wages in full or the unpaid balance
due to the inter-State migrant workman employed by the contractor
• And recover the amount from the contractor either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the contractor

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19 Section 18 - Liability of principal employer in certain cases

 If any allowance required to be paid
under section 14 (Displacement
allowance) or section 15 (Journey
allowance) to an inter-State migrant
workman is not paid by the contractor
or if any facility specified in section 16
is not provided
• Such allowance shall be paid or
the facility shall be provided, by
the principal employer within
such time as may be prescribed
 All the allowances paid by the
principal employer or all the
expenses incurred by him in providing the facility mentioned above may be recovered by him from the
contractor either by deduction from any amount payable to the contractor under any contract or as a debt
payable by the contractor.

20 Section 19 - Past liabilities

 It shall be the duty of every contractor and every principal employer:
• To ensure that any loan given by such contractor or principal employer to any inter-State migrant
workman does not remain outstanding after the completion of the period of employment
 Accordingly, every obligation of an inter-State migrant workman to re-pay any debt during the
period of his employment from the contractor or the principal employer shall on such completion
be deemed to have been extinguished
 And no suit or other proceeding shall lie in any court or before any authority for the recovery of
such debt or any part of it

21 Section 20 - Inspectors
 The appropriate Government may appoint inspectors and define the local
limits within which they shall exercise their powers
• An inspector may (within his local limits):
 If he has reason to believe that any inter-State migrant workmen
are employed in any premises or place enter at all reasonable
hours, with such assistants (if any), such premises or place for the
purpose of:
o Satisfying himself whether the provisions of this Act in relation
to the payment of wages, conditions of service, or facilities to
be provided to such workmen are being complied with
o Examining any register or record or notices required to be kept or exhibited by the provisions
of this Act or the rules made thereunder, and requiring the production of it for inspection
o Examine any person found in any such premises or place for the purpose of determining
whether such person is an inter-State migrant workman
o Require any person giving out work to any workman to give any information, with respect to

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the names and addresses of the persons from whom the work is given out or received, and
with respect to the payments to be made for the work
o Seize or take copies of such register, record of wages, or notices or portions of it as he may
consider relevant in respect of an offence which he has reason to believe has been committed
by a principal employer or contractor

22 Section 21 - Inter-State migrant workmen to be deemed to be in employment from

date of recruitment for the purposes of certain enactments
 For the purposes of the enactments (Laws) specified in the Schedule,
• An inter-State migrant workman shall from the date of his recruitment, be deemed to be employed
and actually worked in the establishment or the first establishment in connection with the work of
which he is employed

23 Section 23 - Registers and other records to be maintained

 Every principal employer and every
contractor shall maintain such
registers and records giving such
particulars of the inter-State migrant
workmen employed:
• The nature of work performed by
such workmen,
• The rates of wages paid to the
workmen
 Every principal employer and
every contractor shall keep exhibit
(display) within the premises of the
establishment where the inter-State
migrant workmen are employed,
notices containing particulars about
the:
• Hours of work
• Nature of duty

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Concept Check
Q. As per the provisions of the Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979, within what time after the receipt of the application, the registering
officer shall register the establishment?
A. 2 months
B. 3 months
C. 15 days
D. 1 month

Ans: D

Concept Check
Q. As per the provisions of the Inter-State Migrant Workmen (Regulation of Employment
and Conditions of Service) Act, 1979, how much displacement allowance shall be paid by the
contractor to every inter-State migrant workman at the time of recruitment?
A. 50% of the monthly wages payable to him or 75 rupees, whichever is higher
B. 60% of the monthly wages payable to him or 75 rupees, whichever is higher
C. 70% of the monthly wages payable to him or 75 rupees, whichever is higher
D. 50% of the monthly wages payable to him or 25 rupees, whichever is higher

Ans: A

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Contract Labour Regulation and

Abolition Act, 1970

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1 History
Introduction
Contract labour refers to the employment of workers through a mediator
or contractor for a specific period under a contract, rather than hiring
them directly. This form of labour is prevalent across various industries
globally and is characterized by its temporary and flexible nature.
Significance and Challenges: The use of contract labour allows companies
to manage workforce requirements in response to market demands
efficiently. However, it also raises concerns regarding the rights, wages,
and working conditions of contract workers, leading to the need for
regulation and, in some cases, abolition.

Global Scenario
Diverse Regulations: Across the globe, countries have adopted varying stances on contract labour, ranging
from strict regulatory frameworks to more lenient policies. These regulations aim to balance the flexibility
businesses need with the protection of workers’ rights.
International Labour Organization (ILO) Involvement: The ILO plays a crucial role in setting international
labour standards, including those related to contract labour. It advocates for fair treatment, adequate wages,
and safe working conditions for contract workers.
Challenges in Enforcement: Despite international and national regulations, enforcing these standards remains
a challenge. Issues such as underreporting of violations, lack of awareness among workers, and insufficient
inspection mechanisms hinder effective enforcement.

Indian Scenario
Contract Labour (Regulation and Abolition) Act, 1970: India’s approach to contract labour is encapsulated in
this Act, which aims to regulate the employment of contract labour and abolish it in certain conditions. The Act
provides for the establishment of advisory boards, licensing of contractors, and registration of establishments
employing contract labour.
Scope and Applicability: The Act applies to establishments and contractors employing a certain number
of workers (typically twenty or more). It outlines the rights and obligations of workers, contractors, and
establishments, emphasizing the provision of basic amenities and welfare measures.
Recent Developments: In response to changing economic and labour market conditions, India has undertaken
labour law reforms. These reforms seek to simplify and modernize labour regulations, including those
governing contract labour, to improve business efficiency while ensuring the protection of workers’ rights.
Challenges and Future Directions: The effective implementation of the Contract Labour (Regulation and
Abolition) Act remains a challenge due to issues like bureaucratic hurdles, varying interpretations of the law,
and the evolving nature of work. Future directions may include digitization of compliance processes, stronger
enforcement mechanisms, and increased awareness initiatives for workers and employers.

Conclusion
The history of contract labor regulation reflects a constant struggle to balance economic flexibility with the
protection of workers’ rights. Globally and in India, the journey from exploitation to regulation highlights
the importance of continuous adaptation of laws to changing economic landscapes. As the world moves
towards more gig-based and flexible work models, the lessons learned from regulating contract labor become
increasingly relevant, guiding future policies to ensure that economic development is inclusive and sustainable
for all stakeholders.

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2 Objective
 To regulate the employment of contract labour in certain establishments.
 To provide for its abolition in certain circumstances and for matters connected with it.

3 Section 1 – Application
 It extends to the whole of India
 It applies:
• To every establishment in which 20 or more workmen are employed
or were employed on any day of the preceding 12 months as contract
labour
• To every contractor who employees or who employed on any day of
the preceding 12 months 20 or more workmen
■ The appropriate Government may, after giving at least 2 months’
notice in the Official Gazette, apply this Act to any establishment
or contractor employing less than 20 workmen, as specified in
the notification.
 It shall not apply to establishments in which only of an intermittent or
casual nature is performed.
• If a question arises whether work performed in an establishment is of an intermittent or casual nature
 The appropriate Government shall decide that question after consultation with Central Board or a
State Board, and its decision shall be final.
• Work performed in an establishment shall not be deemed to be of an intermittent nature:
 If it was performed for more than 120 days in the preceding 12 months
 If it is of a seasonal character and is performed for more than 60 days in a year

4 Section 2 - Definitions
 “Contract labour” means:
• A workman shall be deemed to be employed as “contract labour” when he is hired in such work by or
through a contractor, with or without the knowledge of the principal employer

 “Contractor” in relation to an establishment means:

• A person who undertakes to produce a given result for the establishment, other than a mere supply
of goods of articles of manufacture, through contract labour or who supplies contract labour for any
work of the establishment (Includes a sub-contractor)

 “Controlled industry” means:

• Any industry the control of which by the Union has been declared by any Central Act to be expedient
(Beneficial) in the public interest

 “Principal employer” means:

• In relation to any office or department of the Government or a local authority
 The head of that office or department or such other officer as the Government or the local authority
• In a factory,

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 The owner or occupier

of the factory and where
a person has been
named as the manager
of the factory under the
Factories Act, 1948
• In a mine,
 The owner or agent of the
mine and where a person
has been named as the
manager of the mine
• In any other establishment,
any person responsible for the supervision and control of the establishment.

 “Workman” means:
• Any person employed to do any skilled, semi-skilled or
un-skilled manual, supervisory, technical or clerical work
for hire or reward, whether the terms of employment be
express or implied
 But does not include any such person:
o Who is employed mainly in a managerial or
administrative capacity
o Who, being employed in a superviory capacity
draws wages exceeding ₹500 per mensem
(Month) or exercises functions mainly of a
managerial nature
o Who is an out-worker

5 Section 3 - Central Advisory Board

 The Central Government shall constitute the Central Advisory Contract Labour Board to advise the Central
Government on such matters arising out of the administration of this act and to carry out other functions
assigned to it under this Act
 Composition:
• Chairman to be appointed by the Central Government
• Chief Labour Commissioner (Central) ex officio
• Such number of members, not exceeding 17 but not less than 11,
 Which /Central Government may nominate to represent that Government, the Railways, the coal
industry, the mining industry, the contractors, the workmen and any other interests which in the
opinion of the Central Government, should be represented on the Central Board
 The number of members nominated to represent the workmen shall not be less than the number of
members nominated to represent the principal employers and the contractors.

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6 Section 4 - State Advisory Board

 The State Government may constitute the State Advisory Contract Labour Board to advise the State
Government on such matters arising out of the administration of this Act as may be referred to it and to
carry out other functions assigned to it under this Act
 Composition:
• Chairman to be appointed by the State Government
• the Labour Commissioner, ex officio, or in his absence any other officer nominated by the State
Government
• Such number of members, not exceeding 11 but not less than 9
 Which State Government may nominate to represent that Government, the industry, the
contractors, the workmen and any other interests which, in the opinion of the State Government,
should be represented on the State Board
 The number of members nominated to represent the workmen shall not be less than the number of
members nominated to represent the principal employers and the contractors.

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7 Section 5 - Power to constitute committees

 The Central Board or the State Board may constitute such committees and for such purpose or purposes
as it may think fit
 The committee constituted shall meet at such times and places and shall observe such rules of procedure
in regard to the transaction of business at its meetings as may be prescribed
 The members of a committee shall be paid such fees and allowances for attending its meetings as may
be prescribed
• However, no fees shall be payable to a member who is an officer of Government or of any corporation
established by any law for the time being in force

8 Section 6 - Appointment of registering officers

 The appropriate Government may:
• Appoint such persons, being Gazetted Officers of Government, as it thinks fit to be registering officers
• Define the limits, within which a registering officer shall exercise the powers conferred on him by or
under this Act

9 Section 7 - Registration of certain establishments

 Every principal employer of an establishment to which this Act applies shall make an application to the
registering officer in the prescribed manner for registration of the establishment:
• However, the registering officer may entertain any such application for registration after expiry of the
period fixed, if the registering officer is satisfied that the applicant was prevented from making the
application in time
 If the application for
registration is complete in
all respects, the registering
officer shall register the
establishment and issue to
the principal employer of the
establishment a certificate of
registration.

10 Section 8 - Revocation of registration in certain cases

 If the registering officer is satisfied that the registration of any establishment has been obtained by
misrepresentation or suppression of any material fact, or that for any other reason the registration has
become useless or ineffective and, therefore, requires to be revoked,
• The registering officer may, after giving an opportunity to the principal employer of the establishment
to be heard and with the previous approval of the appropriate Government, revoke the registration

11 Section 9 - Effect of non-registration

 No principal employer of an establishment shall employ contract labour in the establishment after the
expiry of the period or after the revocation of registration
• If the establishment is required to be registered but which has not been registered
• If an establishment whose registration has been revoked

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12 Section 10 - Prohibition of employment of contract labour

 The appropriate Government may, after consultation with the Central Board or State Board, prohibit
employment of contract labour in any process, operation or other work in any establishment.
 Before issuing any notification in relation to an establishment, the appropriate Government shall have
regard to the conditions of work and benefits provided for the contract labour in that establishment and
other relevant factors, such as:
• Whether the process, operation or other work is
incidental to, or necessary for the industry, trade,
business, manufacture or occupation that is carried on
in the establishment
• Whether it is of perennial nature, i.e. it is of sufficient
duration having regard to the nature of industry, trade,
business, manufacture or occupation carried on in that
establishment
• Whether it is done ordinarily through, regular workmen
in that establishment or an establishment
• Whether it is sufficient to employ considerable number of whole time workmen.

13 Section 11 - Appointment of licensing officers

 The appropriate Government may:
• Appoint such persons, being Gazetted Officers of Government to be licensing officers
• Define the limits, within which a licensing officer shall exercise the powers conferred on him

14 Section 12 - Licensing of contractors

 No contractor to whom this Act applies shall undertake or execute any work through contract labour
except in accordance with a licence issued by the licensing officer.
 A licence may contain such conditions including, in particular:
• Conditions as to hours of work, fixation of wages and other essential amenities in respect of contract
labour as the appropriate Government may deem fit.

15 Section 13 - Grant of licences

 Every application for the grant of a licence shall contain the particulars regarding the:
• Location of the establishment

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• The nature of process

• Operation or work for which contract labour is to be employed
• Such other particulars
 The licensing officer may make such investigation in respect of the application received and in making any
such investigation the licensing officer shall follow such procedure as may be prescribed
 A licence granted shall be valid for the period specified therein and may be renewed from time to time for
such period and on payment of such fees and on such conditions as may be prescribed

16 Section 14 - Revocation, Suspension and Amendment of licenses

 If the licensing officer is satisfied that:
• A license granted has been
obtained by misrepresentation
or suppression of any material
fact, or
• The holder of a license has,
without reasonable cause,
failed to comply with the
conditions subject to which
the license has been granted
or has contravened (Violated)
any of the provisions or the
rules made under the act.
 Then, without prejudice (affecting) to any other penalty to which the holder of the license may be
liable, the licensing officer may, after giving the holder of the license an opportunity of showing
cause, revoke or suspend the license or forfeit the sum, if any, or any portion of it deposited as
security for the due performance of the conditions subject to which the license has been granted.
 Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a license
granted.

17 Section 15 – Appeal
 Any person aggrieved by an order may, within 30 days from the date on which the order is communicated
to him, prefer an appeal to an appellate officer who shall be a person nominated in this behalf by the
appropriate Government:
• However, appellate officer may
entertain the appeal after the
expiry of the said period of 30 days,
if he is satisfied that the appellant
was prevented from filing the
appeal in time
 On receipt of an appeal the appellate
officer shall, after giving the appellant
an opportunity of being heard, dispose
of the appeal as expeditiously as
possible.

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18 Section 16 - Canteens
 The appropriate Government may make rules requiring that in every
establishment shall be provided one or more canteens maintained by the
contractor for the use of such contract labour:
• To which this Act applies
• Where work requiring employment of contract labour is likely to
continue
• Where contract labour numbering 100 or more is ordinarily employed
by a contractor
 Without prejudice (affecting) to the generality of the foregoing (previous)
power, such rules may provide for:
• The date by which the canteens shall be provided
• The number of canteens and the standards in respect of construction, accommodation, furniture and
other equipment of the canteens
• The foodstuffs which may be served and the charges of it

19 Section 17 - Rest-rooms
 In every place where contract labour is required to halt at night in connection with the work of
an establishment shall be provided such number of rest-rooms or such other suitable alternative
accommodation which are maintained by the contractor:
• To which this Act applies
• In which work requiring employment of contract labour is likely to continue
 The rest-rooms or the alternative accommodation to be provided shall be sufficiently lighted and
ventilated and shall be maintained in a clean and comfortable condition

20 Section 18 - Other facilities

 It shall be the duty of every contractor
employing contract labour to provide
and maintain:
• a sufficient supply of wholesome
drinking water at convenient
places
• a sufficient number of latrines and
urinals convenient and accessible
in the establishment
• washing facilities

21 Section 19 - First-aid facilities

 First-aid box shall be provided and maintained by the contractor so as to
be readily accessible during all working hours equipped with the prescribed
contents at every place where contract labour is employed by him.

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22 Section 20 - Liability of principal employer in certain cases

 If any amenity required to be provided under section 16 (Canteens), section 17 (Rest rooms), section
18 (Other facilities) or section 19 (First aid facilities) is not provided by the contractor within the time
prescribed, such amenity shall be provided by the principal employer within such time as may be
prescribed
 All expenses incurred by the principal employer in providing the amenity may be recovered from the
contractor either by:
• Deduction from any amount payable to the contractor under any contract or
• As a debt payable by the contractor.

23 Section 21 - Responsibility for payment of wages

 A contractor shall be responsible for payment of wages to each worker employed by him as contract
labour and such wages shall be paid before the expiry of such period prescribed
 Every principal employer shall nominate a representative to be present at the time of disbursement of
wages by the contractor and it shall be the duty of such representative to certify the amounts paid as
wages in such manner as may be prescribed
 It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorised
representative of the principal employer
 In case the contractor fails to make payment of wages within the prescribed period or makes short
payment,
• Then the principal employer shall be liable to make payment of wages in full or the unpaid balance
due to the contract labour employed by the contractor and
• Recover the amount so paid from the contractor either by
 Deduction from any amount payable to the contractor under any contract or
 As a debt payable by the contractor

24 Section 26 - Cognizance of offences

 No court shall take cognizance of any offence
• Except on a complaint made by, or with the previous sanction of the inspector and
• No court inferior to that of a Presidency Magistrate or a magistrate of the first class shall try any
offence punishable under this Act

25 Section 27 - Limitation of prosecutions

 No court shall take cognizance of an offence:
• Unless the complaint is made within 3 months from the date on which the alleged commission of the
offence came to the knowledge of an inspector.
• Where the offence consists of disobeying a written order made by an inspector, complaint may be
made within 6 months of the date on which the offence is alleged to have been committed.

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26 Section 28 - Inspecting staff

 The appropriate Government may appoint such persons as it thinks fit to be inspectors for and define the
local limits within which they shall exercise their powers
 An inspector may, within the local limits for which he is appointed:
• Enter, at all reasonable hours, with such assistance (if any), any premises or place:
 Where contract labour is employed, for the purpose of examining any register or record or notices
and require the production of them for inspection
• Examine any person whom he finds is a workman employed
• Require any person giving out work and any workman, to give any information with respect to the
names and addresses of the persons involved in giving or receiving the work, and with respect to the
payments to be made for the work
• Seize or take copies of such register, record of wages or notices or portions of it as he may consider
relevant in respect of an offence which he has reason to believe has been committed by the principal
employer or contractor

27 Section 29 - Registers and other records to be maintained

 Every principal employer and every contractor
shall maintain such registers and records giving
such particulars of contract labour employed:
• The nature of work performed by the
contract labour,
• The rates of wages paid to the contract
labour
 Every principal employer and every contractor
shall keep exhibited (Display) within the
premises of the establishment where the
contract labour is employed:
• Notices, containing particulars about the
hours of work, nature of duty.

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28 Section 30 - Effect of laws and agreements inconsistent with this Act

 The provisions of this Act shall have effect notwithstanding
(despite) anything inconsistent (Contradictory) with
contained in any other law or in the terms of any agreement
or contract of service, or in any standing orders applicable
to the establishment whether made before or after the
commencement (beginning) of this Act
 Nothing contained in this Act shall be construed (Perceived)
as precluding (Prohibiting) any such contract labour from
entering into an agreement with the principal employer or
the contractor for granting them rights or privileges which
are more favorable to them than those to which they would
be entitled under this Act

Concept Check
Q. Under the Contract Labour (Regulation and Abolition) Act, 1970, the total number of members of
the Central Advisory Board other than the Chairman and the Chief Labour Commissioner (Central)
shall NOT exceed.
(a) Eleven
(b) Thirteen
(c) Nineteen
(d) Seventeen

Ans: D

Concept Check
Q. Which one of the following nature of work shall not be taken into account while the Appropriate
Government considers prohibiting employment of contract labour in an establishment under the
Contract Labour (Regulation and Abolition) Act, 1970?
(a) The process, operation or other work is incidental to industry or necessary for the industry
(b) The work is of a permanent nature
(c) The work is done ordinarily through regular workmen
(d) The work is of intermittent nature

Ans: D

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Payment of Bonus Act, 1965

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1 Objective
 To provide for the payment of bonuses to persons employed in
certain establishments and for matters connected therewith.

2 Section 1 – Application
 It extends to the whole of India
 It applies to:
• Every factory; and
• Every other establishment in which twenty or more persons
are employed on any day during an accounting year

3 Section 2 - Definitions
 “Accounting Year” means:
• In relation to a corporation - the year ending on the day on which the books and accounts of the
corporation are to be closed and balanced
• In relation to a company - the period in respect of which any profit and loss account of the company
laid before it in annual general meeting is made up, whether that period is a year or not
• In any other case –
 the year commencing on the 1st day of April; or
 if the accounts of an establishment are closed and balanced on any day other than the 31st of
March, then, at the option of the employer, the year ending on the day on which its accounts are
so closed and balanced

 “Allocable Surplus” means:

• In relation to an employer, being a company other than a banking company which has not made
the arrangements for the declaration and payment within India - 67% of the available surplus in an
accounting year
• In any other case - 60% of such available surplus

 “Employee” means:
• Any person (other than an apprentice) employed on a salary or wage not exceeding 21000 rupees per
month in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative,
technical, or clerical work for hire or reward, whether the terms of employment be express or implied

 “Establishment in Public Sector” means:

• An establishment owned, controlled, or managed by—
 A government company as defined in the Companies Act, 1956
 a corporation in which not less than 40% of its capital is held (whether singly or taken together)
by—
o the Government; or
o the Reserve Bank of India; or
o a corporation owned by the Government or the Reserve Bank of India

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 “Wages” means:
• all remuneration (other than remuneration in respect of overtime work) capable of being expressed
in terms of money,
which would,
if the terms of
employment, express
or implied, were
fulfilled, be payable
to an employee
in respect of his
employment or of
work done in such
employment and
includes dearness
allowance,
 But does not include any such person:
o any other allowance which the employee is for the time being entitled to
o the value of any house accommodation or of supply of light, water, medical attendance or
other amenity or of any service or of any concessional supply of foodgrains or other articles
o any travelling concession
o any bonus (including incentive, production and attendance bonus)
o any contribution paid or payable by the employer to any pension fund or provident fund or for
the benefit of the employee under any law for the time being in force
o any retrenchment compensation or any gratuity or other retirement benefit payable to the
employee or any ex gratia payment made to him
o any commission payable to the employee

4 Section 3 - Establishments to include departments, undertakings and branches

 Where an establishment consists of different departments or undertakings or has branches, whether
situated in the same place or different places.
 All such departments or undertakings or branches shall be treated as parts of the same establishment for
the purpose of computation of bonus under this Act.
 Provided that where for any accounting year a separate balance sheet and P & L account are prepared
in respect of any such department or undertaking or branch then they shall be treated as a separate
establishment for the purpose of computation of bonus for that year, unless they were treated as part of
the establishment for the purpose of computation of bonus immediately before the commencement of
that accounting year.

5 Section 5 – Computation of Available Surplus

 The available surplus in respect of any accounting year shall be the gross profits for that year after deducting
therefrom the sums referred to in section 6:
Provided that the available surplus in respect of the accounting year commencing on any day in the year
1968 and in respect of every subsequent accounting year shall be the aggregate of:
• the gross profits for that accounting year after deducting therefrom the sums referred to in section 6;
and

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• an amount equal to the difference between –

 the direct tax in respect of an amount equal to the gross profits of the employer for the immediately
preceding accounting year; and
 the direct tax in respect of an amount equal to the gross profits of the employer for such preceding
accounting year after deducting therefrom the amount of bonus which the employer has paid or is
liable to pay to his employees in accordance with the provisions of this Act for that year.

6 Section 6 – Sums Deductible from

Gross Profits
 The following sums shall be deducted
from the gross profits as prior charges,
namely
• any amount by way of depreciation
admissible in accordance with the
provisions of the Income Tax Act
• any amount by way of development
rebate or investment allowance or
development allowance which the
employer is entitled to deduct from
his income under the Income Tax
Act
• any direct tax which the employer is
liable to pay for the accounting year
in respect of his income, profits and
gains during that year
• such further sums as are specified
in respect of the employer in the
Third Schedule.

7 Section 8 – Eligibility for Bonus

 Every employee shall be entitled to be paid a bonus.
 By his employer in an accounting year.
 Provided he has worked in the establishment for not less than thirty working
days in that year.

8 Section 9 – Disqualification for Bonus

 Notwithstanding anything contained
in this Act, an employee shall be
disqualified from receiving a bonus
under this Act, if he is dismissed from
service for—
• fraud; or
• riotous or violent behavior while
on the premises of the establishment; or

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• theft, misappropriation or sabotage of any property of the establishment.

9 Section 10 – Payment of Minimum Bonus

 Subject to the other provisions of this Act -
• every employer shall be bound to pay to every employee a minimum bonus in respect of the accounting
year commencing on any day in the year 1979 and in respect of every subsequent accounting year.
• Limit – Minimum bonus
shall be 8.33% of the
salary or wage earned by
the employee during the
accounting year or one
hundred rupees, whichever
is higher, whether or not the
employer has any allocable
surplus in the accounting
year.
• Provided that where an employee has not completed 15 years of age at the beginning of the accounting
year, the words “one hundred rupees” shall be substituted by the words “sixty rupees”.

10 Section 11 – Payment of Maximum Bonus

 Where in respect
of any accounting
year, the allocable
surplus exceeds the
amount of minimum
bonus payable to the
employees,
 the employer shall
be bound to pay to
every employee the
bonus which shall be an amount in proportion to the salary or wage earned by the employee during the
accounting year in place of such minimum bonus.
 Maximum Limit - maximum of 20% of such salary or wage.

11 Section 12 – Calculation of Bonus with respect to certain employees

 Where the salary or wage of an employee
exceeds 7000 rupees per month or the minimum
wage for the scheduled employment, as fixed
by the appropriate Government, whichever is
higher,
 the bonus payable to such employee shall be
calculated as if his salary or wage were 7000
rupees per month or the minimum wage for
the scheduled employment, as fixed by the
appropriate Government, whichever is higher.

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12 Section 13 – Proportionate Reduction in bonus in certain cases

 Where an employee has not worked for all the working days in an accounting year,
 the minimum bonus of 100 rupees or, as the case may be, of 60 rupees, if such bonus is higher than 8.33 %
of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced.

13 Section 14 – Computation of number of Working Days

 An employee shall be deemed to have worked
in an establishment in any accounting year also
on the days on which –
• he has been laid off
• he has been on leave with salary or wage
• he has been absent due to temporary
disablement caused by an accident arising
out of and in the course of his employment
• the employee has been on maternity leave
with salary or wage, during the accounting
year

14 Section 15 - Set on and Set off of Allocable Surplus

 Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable
then the excess shall be carried forward for being set on in the succeeding accounting year and so on up
to and inclusive of the fourth accounting year to be utilized for payment of bonus subject to a limit of 20%
of the total salary or wage of the employees.
 Where for any accounting year –
• there is no available surplus or
• the allocable surplus in respect of that year falls short of the amount of minimum bonus payable
and
• there is no sufficient amount carried forward and set on which could be utilized for payment of the
minimum bonus then,
such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in
the succeeding accounting year and so on up to and inclusive of the fourth accounting year
 Where in any accounting year any amount has been carried forward and set on or set off, then, in calculating
bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest
accounting year shall first be taken into account.

15 Section 16 – Special Provisions with respect to Certain establishments

 Where establishments are newly set up, the employees of such establishment shall be entitled to be paid
bonuses according to the following -
• In the first 5 accounting years (AY) following the AY in which the employer sells the goods produced
or manufactured by him or renders services, as the case may be, from such establishment - bonus
shall be payable only in respect of the assessment year in which the employer derives profit and such
bonus shall be calculated without applying the provisions of set on and set off.
• For the first 6th accounting year (AY) - set on or set off, as the case may be, shall be made taking into

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account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in
respect of the fifth and sixth accounting years.
• For the first 7th accounting year (AY) - set on or set off, as the case may be, shall be made taking into
account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in
respect of the fifth, sixth and seventh accounting years.
• From the 8th accounting year (AY) - the provisions of set on and set off shall apply in relation to such
establishment as they apply in relation to any other establishment.

16 Section 17 – Adjustment of Customary or Interim bonus against Bonus payable

 Where in any accounting year –
• an employer has paid
any puja bonus or other
customary bonus to an
employee; or
• an employer has paid a part
of the bonus payable under
this Act to an employee
before the date on which
such bonus becomes payable,
then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus
payable by him to the employee under this Act in respect of that accounting year and the employee shall
be entitled to receive only the balance.

17 Section 18 – Deduction of certain amounts from bonus payable under the Act
 Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the
employer, then, it shall be
lawful for the employer to
deduct the amount of loss
from the amount of bonus
payable by him to the
employee under this Act in
respect of that accounting
year only and the employee
shall be entitled to receive
the balance, if any.

18 Section 19 – Time Limit for Payment of Bonus

 All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer –
• where there is a dispute regarding payment of bonus pending before any authority - within a month
from the date on which the award becomes enforceable or the settlement comes into operation, in
respect of such dispute.
• in any other case - within a period of 8 months from the close of the accounting year.
 Provided that the appropriate Government or such authority as the appropriate Government
may specify in this behalf may, upon an application made to it by the employer and for sufficient

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reasons, by order,
extend the said
period of 8 months
to such further
period or periods
as it thinks fit; so,
however, that the
total period so
extended shall not
in any case exceed
2 years.

19 Section 20 – Application of Act to establishments in public sector in certain cases

 If in any accounting year an establishment in public sector sells any goods produced or manufactured by it
or renders any services, in competition with an establishment in private sector, and the income from such
sale or services or both is not less than 20% of the gross income of the establishment in public sector for
that year, then, the provisions of this Act shall apply in relation to such establishment in public sector as
they apply in relation to a like establishment in private sector.

20 Section 21 – Recovery of Bonus Due from an Employer

 Where any money is due to an employee by way of a bonus from his employer under a settlement or an
award or agreement,
 the employee himself
or any other person
authorized by him or in
the case of the death
of the employee, his
assignee or heirs may
make an application
to the appropriate
Government for the
recovery of the money
due to him.
 If the appropriate
Government is satisfied
that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to
recover the same in the same manner as an arrear of land revenue.
 Every such application shall be made within one year from the date on which the money became due to
the employee from the employer.

21 Section 26 – Maintenance of Registers, records, etc.

 Every employer shall prepare and maintain such registers, records, and other documents
in such form and such manner as may be prescribed.

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22 Section 27 - Inspectors
 The appropriate Government may appoint such person as it thinks fit to be Inspectors for this Act and
may define the limits within which they shall exercise jurisdiction.
 An Inspector appointed for the purpose of ascertaining whether any of the provisions of this Act have
been complied with –
• require an employer to furnish such information as he may consider necessary.
• at any reasonable time and with such assistance, if any, as he thinks fit, enter any establishment or
any premises connected therewith and require anyone found in charge thereof to produce before him
for examination any accounts, books, registers, and other documents relating to the employment of
persons or the payment of salary of wage or bonus in the establishment.
• examine the employer, his agent or servant, or any other person found in charge of the establishment
or any premises connected therewith or any person whom the Inspector has reasonable cause to
believe to be or to have been an employee in the establishment.
• make copies of, or take extracts from, any book, register, or other document maintained in relation to
the establishment.
• exercise such other powers as may be prescribed.

23 Section 30 - Cognizance of offences

 No court shall take cognizance of any offence punishable under this Act except on a complaint made by, or
under the authority of the appropriate Government or an officer of that Government not below the rank
of a Regional Labour Commissioner in the case of an officer of the Central Government, and not below
the rank of a Labour Commissioner in the case of an officer of the State Government specially authorized
in this behalf by that Government.
 No court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence
punishable under this Act.

24 Section 31A – Special Provision with respect to payment of bonus linked with production
or productivity
 Not with standing anything
contained in this Act, where
an agreement or a settlement
has been entered into by
the employees with their
employer for payment of an
annual bonus linked with
production or productivity
in lieu of a bonus based on
profits payable under this Act,
then, such employees shall be
entitled to receive bonus due
to them under such agreement
or settlement, as the case may
be.
 Provided that any such agreement or settlement whereby the employees relinquish their right to receive

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the minimum bonus shall be null and void in so far as it purports to deprive them of such right.
 Provided further that such employees shall not be entitled to be paid such bonus in excess of 20% of the
salary or wage earned by them during the relevant accounting year.

25 Section 32 - Act not to Apply to Certain classes of employees

 Nothing in this Act shall apply to –
• employees employed by any insurer carrying on general insurance business and the employees
employed by the Life Insurance Corporation of India.
• Seamen
• employees registered or listed under any scheme made under the Dock Workers (Regulation of
Employment) Act, 1948, and employed by registered or listed employers
• employees employed by an establishment engaged in any industry carried on by or under the authority
of any department of the Central Government or a State Government or a local authority
• employees employed by the Indian Red Cross Society or any other institution of a like nature, universities
and other educational institutions, institutions (including hospitals, chambers of commerce, and social
welfare institutions) established not for purposes of profit
• employees employed by the Reserve Bank of India
• employees employed by the Industrial Finance Corporation of India, any Financial Corporation
established under section 3, or any Joint Financial Corporation established under section 3A, of the
State Financial Corporations Act, 1951, the Deposit Insurance Corporation, the National Bank for
Agriculture and Rural Development, the Unit Trust of India, the Industrial Development Bank of India,
the Small Industries Development Bank of India, the National Housing Bank
• any other financial institution (other than a banking company), being an establishment in the public
sector, which the Central Government may, by notification in the Official Gazette, specify, having regard
to its capital structure, its objectives, and the nature of its activities, the nature and extent of financial
assistance or any concession given to it by the Government and any other relevant factor
• employees employed by inland water transport establishments operating on routes passing through
any other country

Concept Check
Q. The provisions of the Payment of Bonus Act, 1965 shall be applicable on every establishment in
which:
(a) 20 or more persons are employed
(b) 30 or more persons are employed
(c) 50 or more persons are employed
(d) 100 or more persons are employed

Ans: A

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Concept Check
Q. As per the provisions of the Payment of Bonus Act, 1965, a person shall be considered as an
employee whose salary or wage does not exceed:
(a) Rs. 15000
(b) Rs. 10000
(c) Rs. 20000
(d) Rs. 21000

Ans: D

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Building and other Construction

Workers (Regulation of
Employment and Conditions of
Service) Act, 1996

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1 Objective
 To regulate the employment and conditions of service of
building and other construction workers and to provide for
their safety, health, and welfare measures and for other matters
connected therewith or incidental thereto.

2 Section 1 – Application
 It extends to the whole of India.
 It applies to every establishment which employs, or had employed on any day of the preceding twelve
months, ten or more building workers in any building or other construction work.

3 Section 2 - Definitions
 “Building or Other Construction Work” means the construction, alteration, repairs, maintenance
or demolition, of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation,
drainage, embankment and navigation works, flood control works (including stormwater drainage works),
generation, transmission and distribution of power, water works (including channels for distribution of
water), oil and gas installations, electric lines, wireless, radio, television, telephone, telegraph and overseas
communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aqueducts, pipelines,
towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the
appropriate Government, by notification but does not include any building or other construction work to
which the provisions of the Factories Act, 1948, or the Mines Act, 1952, apply.

 “Building Worker” means:

• a person who is employed to do any skilled, semi-skilled or unskilled, manual, supervisory, technical,
or clerical work for hire or reward, whether the terms of employment be expressed or implied, in
connection with any building or other construction work but does not include any such person:
 who is employed mainly in a managerial or administrative capacity; or
 who, being employed in a supervisory capacity, draws wages exceeding 1600 rupees per month
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.

 “Establishment” means any establishment belonging to, or under the control of, Government, any
body corporate or firm, an individual or association or other body of individuals which or who employs
building workers in any building or other construction work; and includes an establishment belonging to a
contractor, but does not include an individual who employs such workers in any building or construction
work in relation to his own residence the total cost of such construction not being more than rupees 10
lakhs.

4 Section 3 – Central Advisory Committee

 The Central Government shall constitute a Committee to be called the Central Building and Other
Construction Workers’ Advisory Committee (Central Advisory Committee).
 Functions - to advise the Central Government on such matters arising out of the administration of this Act
as may be referred to it.

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 The Central Advisory Committee shall consist of –

• a chairperson to be appointed by the Central Government
• 3 Members of Parliament of whom two shall be elected by the House of the People and one by the
Council of States—members
• the Director-General—member, ex officio
• such number of other members, not exceeding 13 but not less than 9, as the Central Government may
nominate to represent the employers, building workers, associations of architects, engineers, accident
insurance institutions, and any other interests which, in the opinion of the Central Government, ought
to be represented on the Central Advisory Committee.
Provided that the members nominated to represent the building workers shall not be less than the
number of members nominated to represent the employers.

5 Section 4 – State Advisory Committee

 The State Government shall constitute a Committee to be called the State Building and Other Construction
Workers’ Advisory Committee (State Advisory Committee).
 Functions - to advise the State Government on such matters arising out of the administration of this Act
as may be referred to it.
 The State Advisory Committee shall consist of –
• a chairperson to be appointed by the State Government
• 2 Members of State Legislature to be elected from the State Legislature—members
• a member to be nominated by the Central Government
• the Chief Inspector—member, ex officio
• such number of other members, not exceeding 11 but not less than 7, as the State Government may
nominate to represent the employers, building workers, associations of architects, engineers, accident
insurance institutions, and any other interests which, in the opinion of the State Government, ought to
be represented on the State Advisory Committee.
Provided that the members nominated to represent the building workers shall not be less than the
number of members nominated to represent the employers.

6 Section 5 – Expert Committees

 The appropriate Government may
constitute one or more expert
committees consisting of persons
specially qualified in building
or other construction work for
advising the Government for
making rules under this Act.
 The members of the expert
committee shall be paid such fees
and allowances for attending the
meetings of the committee as may
be prescribed.
 Provided that no fee or allowances shall be payable to a member who is an officer of Government or of
any body corporate established by or under any law for the time being in force.

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7 Section 6 – Appointment of Registering Officers

 The appropriate Government may —
• appoint such persons to be the registering officers as it thinks fit; and
• define the limits within which a registering officer shall exercise the powers conferred on him by or
under this Act

8 Section 7 – Registration of Establishments

 Every employer shall –
• in relation to an establishment
to which this Act applies on
its commencement, within
a period of sixty days from
such commencement; and
• in relation to any other
establishment to which
this Act may be applicable
at any time after such
commencement, within a
period of sixty days from the date on which this Act becomes applicable to such establishment,
make an application to the registering officer for the registration of such establishment:
Provided that the registering officer may entertain any such application after the expiry of the periods
aforesaid, if he is satisfied that the applicant was prevented by sufficient cause from making the application
within such period.
• After the receipt of an application, the registering officer shall register the establishment and issue
a certificate of registration to the employer thereof in such form and within such time and subject to
such conditions as may be prescribed.
• Where any change occurs in the ownership or management or other prescribed particulars in respect
of such establishment, after the registration of an establishment, the particulars regarding such change
shall be intimated by the employer to the registering officer within 30 days of such change in such
form as may be prescribed.

9 Section 8 – Revocation of Registration in Certain cases

 If the registering officer
is satisfied, either on a
reference made to him in
this behalf or otherwise,
that the registration of any
establishment has been
obtained –
• by misrepresentation or
• suppression of any
material fact or
• that the provisions of
this Act are not being

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complied with in relation to any work carried on by such establishment, or

• that for any other reason the registration has become useless or ineffective and, therefore, requires
to be revoked,
he may revoke the registration after giving an opportunity to the employer of the establishment to be
heard.

10 Section 9 – Appeal
 Any person aggrieved by an order
made may prefer an appeal to
the appellate officer who shall be
a person nominated in this behalf
by the appropriate Government
within 30 days from the date on
which the order is communicated
to him.
• Provided that the appellate
officer may entertain the
appeal after the expiry of the
said period of thirty days if he is
satisfied that the appellant was
prevented by sufficient cause
from filing the appeal in time.
 On receipt of an appeal, the
appellate officer shall confirm,
modify or reverse the order of
revocation as expeditiously as
possible.

11 Section 10 – Effect of non-registration

 No employer of an establishment to which this Act applies shall –
• employ building workers in the establishment after the expiry of the period referred to in section 7 in
the case of an establishment required to be registered, but which has not been registered.
• employ building workers in the establishment after the revocation of registration or after the expiry of
the period for preferring an appeal or after the dismissal of the appeal in the case of an establishment
the registration in respect of which has been revoked and no appeal has been preferred against such
order of revocation within the period prescribed for the preferring of such appeal or where an appeal
has been so preferred, such appeal has been dismissed.

12 Section 11 – Beneficiaries of the Fund

 Every building worker registered as a beneficiary under this Act shall be entitled to the benefits provided
by the (Building and Other Construction Workers’ Welfare Board) Board from its Fund under this Act.

13 Section 12 – Registration of Building Workers as Beneficiaries

 Every building worker who has completed 18 years of age, but has not completed 60 years of age, and

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who has been engaged in any building or other construction work for not less than 90 days during the
preceding 12 months shall be eligible for registration as a beneficiary under this Act.
 An application for registration shall be made to the officer authorised by the Board in this behalf.
 Every application shall be accompanied by such documents together with such fee not exceeding 50
rupees as may be prescribed.
 If the officer authorised by the Board is satisfied that the applicant has complied with the provisions of
this Act and the rules made thereunder, he shall register the name of the building worker as a beneficiary
under this Act.
 Any person aggrieved by the decision may prefer an appeal to the Secretary of the Board or any other
officer specified by the Board in this behalf and the decision of the Secretary or such other officer on such
appeal shall be final within thirty days from the date of such decision.
 The Secretary of the Board shall cause to maintain such registers as may be prescribed.

14 Section 13 – Identity Cards

 The Board shall give to every beneficiary an identity card with his photograph duly affixed thereon and
with enough space for entering the details of the building or other construction work done by him.
 Every employer shall enter in the identity card the details of the building or other construction work done
by the beneficiary and authenticate the same and return it to the beneficiary.
 A beneficiary who has been issued an identity card under this Act shall produce the same whenever
demanded by any officer of Government or the Board, any inspector or any other authority for inspection.

15 Section 14 – Cessation as a Beneficiary

 A building worker who
has been registered as a
beneficiary under this Act
shall cease to be as such
when he attains the age of
60 years or when he is not
engaged in building or other
construction work for not
less than 90 days in a year.
• Provided that in
computing the period of
ninety days, there shall
be excluded any period
of absence from the building or other construction work due to any personal injury caused to the
building worker by accident arising out of and in the course of his employment.
 if a person had been a beneficiary for at least three years continuously immediately before attaining the
age of sixty years, he shall be eligible to get such benefits as may be prescribed.

16 Section 15 – Register of Beneficiaries

 Every employer shall maintain a register in such form as may be prescribed showing the details of
employment of beneficiaries employed in the building or other construction work undertaken by him and
the same may be inspected without any prior notice by the Secretary of the Board or any other officer duly
authorised by the Board in this behalf.

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17 Section 16 – Contribution of Building Workers

 A building worker who has been registered as a beneficiary under this Act shall contribute to the Fund at
such rate per month as may be specified by the State Government until he attains the age of sixty years.
• Provided that the Board may, if satisfied that a beneficiary is unable to pay his contribution due to any
financial hardship, waive the payment of contribution for a period not exceeding three months at a
time.
 A beneficiary may authorise his employer to deduct his contribution from his monthly wages and to remit
the same to the Board within fifteen days from such deduction.

18 Section 17 – Effect of non-payment of contribution

 Beneficiary shall cease to be a beneficiary if has not paid his contribution for a continuous period of not
less than one year:
• Provided that if the Secretary of the Board is satisfied that the non-payment of contribution was for
a reasonable ground and that the building worker is willing to deposit the arrears, he may allow the
building worker to deposit the contribution in arrears and on such deposit being made, the registration
of building worker shall stand restored.

19 Section 18 – Constitution of State Welfare Boards

 Every State Government shall constitute a Board to be known as the …… (name of the State) Building
and Other Construction Workers’ Welfare Board to exercise the powers conferred on and perform the
functions assigned to it under this Act.
 The Board shall be a body corporate, having perpetual succession and a common seal and shall by the
said name sue and be sued.
 The Board shall consist of a chairperson, a person to be nominated by the Central Government and such
number of other members, not exceeding 15, as may be appointed to it by the State Government.
 The board shall include an equal number of members representing the State Government, the employers
and the building workers and that at least one member of the Board shall be a woman.

20 Section 19 – Secretary and other Officers of the Board

 The Board shall appoint a Secretary and such other officers and employees as it considers necessary for
the efficient discharge of its functions under this Act.
 The secretary of the Board shall be its chief executive officer.

21 Section 20 – Meetings of Boards

 The Board shall meet at such time and place and observe such rules of procedure in regard to the transaction
of business at its meetings (including the quorum at such meetings) as may be prescribed.
 The chairperson or, if for any reason he is unable to attend a meeting of the Board, any member nominated
by the chairperson in this behalf and in the absence of such nomination, any other member elected by
the members present from amongst themselves at the meeting, shall preside at the meeting.
 All questions which come up before any meeting of the Board shall be decided by a majority of votes of
the members present and voting, and in the event of equality of votes, the chairperson, or in his absence,
the person presiding, shall have a second or a casting vote.

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22 Section 22 – Functions of the Board

 The Board may –
• provide immediate assistance to a beneficiary in case of accident
• make payment of pension to the beneficiaries who have completed the age of sixty years
• sanction loans and advances to a beneficiary for construction of a house not exceeding such amount
and on such terms and conditions as may be prescribed
• pay such amount in connection with premia for Group Insurance Scheme of the beneficiaries as it may
deem fit
• give such financial assistance for the education of children of the beneficiaries as may be prescribed
• meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as
may be prescribed
• make payment of maternity benefit to the female beneficiaries
• make provision and improvement of such other welfare measures and facilities as may be prescribed.

23 Section 24 – Building and other Construction Workers’ Welfare Fund

 There shall be constituted by a Board a fund to be called the Building and Other Construction Workers’
Welfare Fund.
 Credit to the fund –
• any grants and loans
made to the Board by
the Central Government
• all contributions made
by the beneficiaries
• all sums received by
the Board from such
other sources as may be
decided by the Central
Government

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 Debit from the fund

• expenses of the Board in the discharge of its functions
• salaries, allowances, and other remuneration of the members, officers and other employees of the
Board
• expenses on objects and for purposes authorized by this Act
 No Board shall incur expenses towards salaries, allowances, and other remuneration to its members,
officers, and other employees and for meeting the other administrative expenses exceeding 5% of its total
expenses during any financial year.

24 Section 28 - Fixing Hours for Normal Working Day

 The appropriate Government may –
• fix the number of hours of work which shall constitute a normal working day for a building worker,
inclusive of one or more specified intervals.
• provide for a day of rest in every period of seven days which shall be allowed to all building workers
and for the payment of remuneration in respect of such days of rest.
• provide for payment of work on a day of rest at a rate not less than the overtime rate.

25 Section 29 – Wages for Overtime Work

 Where any building worker is required to work on any day in excess of the number of hours constituting
a normal working day, he shall be entitled to wages at the rate of twice his ordinary rate of wages.
 “Ordinary rates of wages” means the basic wages plus such allowances as the worker is for the time being
entitled to but does not include any bonus.

26 Section 31 – Prohibition of Employment of Certain Persons in Certain Buildings or Other

Construction Work
 No person about whom the employer knows
or has reason to believe that –
• He is a deaf
• he has a defective vision
• he has a tendency to giddiness
shall be required or allowed to work in any such operation of building or other construction work which
is likely to involve a risk of any accident either to the building worker himself or to any other person.

27 Section 32 – Drinking Water

 The employer shall make effective arrangements to provide and maintain at suitable points conveniently
situated for all persons employed therein a sufficient supply of wholesome drinking water in every place
where building or other construction work is in progress.
 All such points shall be legibly marked “Drinking Water” in a language understood by a majority of the
persons employed in such place and no such point shall be situated within 6 meters of any washing place,
urinal, or latrine.

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28 Section 33 – Latrines and Urinals

 In every place where building or other
construction work is carried on, the employer
shall provide sufficient latrine and urinal
accommodation.
 They shall be so conveniently situated as may
be accessible to the building workers at all
times while they are in such place.
 Provided that it shall not be necessary to
provide separate urinals in any place where
less than 50 persons are employed or where
the latrines are connected to a water-borne
sewage system.

29 Section 34 – Accommodation
 The employer shall provide temporary living accommodation to all building workers employed by him for
such period as the building or other construction work is in progress free of charges and within the work
site or as near to it as may be possible.
 The temporary accommodation provided under shall have separate cooking place, bathing, washing and
lavatory facilities.
 As soon as may be, after
the building or other
construction work is
over, the employer shall,
at his own cost, cause
removal or demolition
of the temporary
structures erected by
him for providing living
accommodation, cooking
place or other facilities to
the building workers and
restore the ground in good
level and clean condition.

30 Section 35 – Creches
 In every place wherein, more than fifty female building workers are ordinarily employed, there shall be
provided and maintained a suitable room or rooms for the use of children under the age of six years of
such female workers.
 Such rooms shall—
• provide adequate accommodation
• be adequately lighted and ventilated
• be maintained in a clean and sanitary condition
• be under the charge of women trained in the care of children and infants.

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31 Section 36 – First Aid

 Every employer shall provide in all the places where building or other construction work is carried on such
first-aid facilities as may be prescribed

32 Section 37 – Canteens
 The appropriate Government may, by rules, require the employer –
• to provide and
maintain in every
place wherein
not less than
250 building
workers are
ordinarily employed, a canteen for the use of the workers
• to provide such other welfare measures for the benefit of building workers as may be prescribed.

33 Section 38 – Safety Committee and Safety Officers

 In every establishment wherein
500 or more building workers are
ordinarily employed, the employer
shall constitute a Safety Committee.
 Composition - It consists of such
number of representatives of the
employer and the building workers
as may be prescribed by the State
Government but the number of
persons representing the workers,
shall, in no case, be less than the
persons representing the employer.
 In every establishment wherein 500
or more building workers are ordinarily employed, the employer shall also appoint a safety officer.

34 Section 39 – Notice of Certain Accidents

 Where in any establishment an accident occurs which causes death or which causes any bodily injury by
reason of which the person injured is prevented from working for a period of 48 hours or more immediately
following the accident, the employer shall give notice thereof to the authority.
 Where a notice given relates to an accident causing the death of 5 or more persons, the authority shall
make an inquiry into such accident within 1 month of the receipt of the notice.

35 Section 41 – Framing of Model Rules for Safety Measures

 The Central Government may frame model rules for safety measures
 Recommendations of expert committees shall be considered before framing the model rules
 The appropriate Government shall, while making any rules in respect, so far as is practicable, conform to
such model rules.

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36 Section 42 – Appointment of Director General, Chief Inspector and Inspectors

 The Central Government may appoint a Gazetted Officer of that Government to be the Director- General
of Inspection.
 He shall be responsible for laying down the standards of inspection and also exercise the powers of an
Inspector throughout India in relation to all the establishments for which the Central Government is the
appropriate Government.
 The State Government may appoint a Gazetted Officer of that Government to be the Chief Inspector of
Inspection of Building and Construction who shall be responsible for effectively carrying out the provisions
of this Act in the State.
 He shall also exercise the powers of an Inspector under this Act throughout the State in relation to
establishments for which the State Government is the appropriate Government.
 The appropriate Government may, by notification, appoint such number of its officers as it thinks fit to be
Inspectors for the purposes of this Act and may assign to them such local limits as it may think fit.

37 Section 43 – Powers of Inspectors

 Subject to any rules made in this behalf, an Inspector may –
• enter, at all reasonable hours, with such assistants being persons in the service of the Government
or any local or other public authority as he thinks fit, any premises or place where building or other
construction work is carried on, for the purpose of examining any register or record or notices required
to be kept or exhibited by or under this Act, and require the production thereof for inspection.
• examine any person whom he finds in any such premises or place and who, he has reasonable cause
to believe, is a building worker employed therein.
• require any person giving out building or other construction work to any building worker, to give any
information, which is in his power to give with respect to the names and addresses of the persons to,
for and whom the building or other construction work is given out or received, and with respect to the
payments to be made for the building or other construction work.
• seize or take copies of such register, record of wages or notices or portions thereof as he may
consider relevant in respect of an offence under this Act which he has reason to believe has been
committed by the employer; and
• exercise such other powers as may be prescribed.

38 Section 44 – Responsibility of Employers

 An employer shall be responsible
for providing constant and adequate
supervision of any building or other
construction work in his establishment
so as to ensure compliance with
the provisions of this Act relating to
safety and for taking all practical steps
necessary to prevent accidents.
 An employer shall be responsible for
payment of wages to each building
worker employed by him.
 In case the contractor fails to make

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payment of compensation in respect of a building worker employed by him, the employer shall be liable
to make payment of that compensation in full or the unpaid balance due and recover the amount so paid
from the contractor.

39 Section 46 – Notice of Commencement of Building or Other Construction Work

 An employer shall send to the Inspector having jurisdiction in the area where the proposed building or
other construction work is to be executed, a written notice at least 30 days before the commencement of
any building or other construction work, containing—
• the name and situation of the place where the building or other construction work is proposed to be
carried on
• the name and address of the person who is undertaking the building or other construction work
• the address to which communications relating to the building or other construction work may be sent
• the nature of the work involved and the facilities, including any plant and machinery, provided
• the arrangements for the storage of explosives, if any, to be used in the building or other construction
work
• the number of workers likely to be employed during the various stages of building or other construction
work
• the name and designation of the person who will be in overall charge of the building or other
construction work at the site
• the approximate duration of the work
 Where any change occurs in any of the particulars furnished above, the employer shall intimate the change
to the Inspector within two days of such change.

40 Section 51 – Appeal
 Any person aggrieved by the imposition of any penalty may prefer an appeal –
• where the penalty has been imposed by the Director-General, to the Central Government.
• where the penalty has been imposed by the Chief Inspector, to the State Government.
within a period of 3 months from the date of communication to such person of the imposition of such
penalty.

Concept Check
Q. Under the provisions of the Building and Other Construction Workers (Regulation of Employment
and Conditions of Service) Act 1996, employment of how many female construction workers make it
mandatory for providing crèche facilities?
(a) More than twenty
(b) More than thirty
(c) More than forty
(d) More than fifty

Ans: D

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Concept Check
Q. Which one of the following is NOT a statutory provision under the Building and Other Construction
Workers (Regulation of Employment and Conditions of Service) Act 1996?
(a) Drinking water
(b) Accommodation
(c) Latrines and urinals
(d) Rest rooms and lunch rooms

Ans: D

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The Mines Act, 1952

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1 Objective
 To amend and consolidate the law relating to the
regulation of labour and safety in mines.

2 Section 2 - Definitions
 “Adult” means a person who has completed his
18th year.
 “Reportable Injury” means any injury other than
a serious bodily injury which involves, or in all
probability will involve, the enforced absence of the injured person from work for a period of seventy-two
hours or more.
 “Week” means a period of seven days beginning at midnight on Saturday night or such other night as may
be approved in writing for a particular area by the Chief Inspector or an Inspector.

3 Section 3 – Act not to apply in Certain Cases

 Provisions of this Act shall not apply to —
• Any mine or part thereof in which excavation is being made for prospecting purposes only and not for
the purpose of obtaining minerals for use or sale. Provided that –
 Not more than 20 persons are employed on any one day in connection with any such excavation
 The depth of the excavation measured from its highest to its lowest point nowhere exceeds 6
metres or, in the case of excavation for coal, 15 metres; and
 No part of such excavation extends below superjacent ground; or

• any mine engaged

in the extraction
of kankar,
murrum, laterite,
boulder, gravel,
shingle, ordinary
sand (excluding
moulding sand,
glass sand and
other mineral
sands), ordinary
clay (excluding kaolin, China clay, white clay or fire clay), building stone, slate, road metal, earth, fullers
earth, marl, chalk and limestone. Provided that –
 The workings do not extend below superjacent ground; or
 Where it is an open cast working —
o the depth of the excavation measured from its highest to its lowest point nowhere exceeds 6
metres
o the number of persons employed on any one day does not exceed 50; and
o explosives are not used in connection with the excavation.

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4 Section 5 – Chief Inspector and Inspectors

 The Central Government may
appoint such a person as possesses
the prescribed qualifications to
be Chief Inspector of Mines for
all the territories to which this
Act extends and such persons
as possess the prescribed
qualifications to be Inspectors of
Mines subordinate to the Chief
Inspector.
 No person shall be appointed to
be Chief Inspector or an Inspector,
or having been appointed shall
continue to hold such office, who is or becomes directly or indirectly interested in any mine or mining
rights in India.
 The district magistrate may exercise the powers and perform the duties of an Inspector subject to the
general or special orders of the Central Government.
 The Chief Inspector and all Inspectors shall be deemed to be public servants within the meaning of the
Indian Penal Code.

5 Section 6 – Functions of Inspectors

 The Chief Inspector may authorize any Inspector named or any class of Inspectors specified in the order
to exercise such of the powers of the Chief Inspector under this Act as he may specify with the approval
of the Central Government.
 The Chief Inspector may prohibit or restrict the exercise by any Inspector named or any class of Inspectors
specified in the order of any power conferred on Inspectors under this Act.
 The Chief Inspector shall declare the local area or areas within which or the group or class of mines with
respect to which Inspectors shall exercise their respective powers.

6 Section 7 – Power of Inspectors of Mines

 The Chief Inspector and any Inspector may —
• make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this
Act and of the regulations, rules and bye-laws and of any orders made thereunder are observed in the
case of any mine.
• enter, inspect and examine any mine or any part thereof at any time by day or night.
• examine into, and make inquiry respecting, the state and condition of any mine or any part thereof, the
ventilation of the mine, the sufficiency of the bye-laws for the time being in force relating to the mine,
and all matters and things connected with or relating to the health, safety and welfare of the persons
employed in the mine, and take whether on the precincts of the mine or elsewhere, statements of any
person which he may consider necessary for carrying out the purposes of this Act.
• exercise such other powers as may be prescribed by regulations made by the Central Government in
this behalf.

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7 Section 8 – Power of Special Officer to enter, measure, etc.

 Any person in the service of the Government duly authorised by Chief Inspector or of an Inspector may
enter the mine at any time by day or night
 Purpose - For the purpose of surveying, leveling or measuring any mine
 Notice - After giving not less than 3 days’ notice to the manager of such mine

8 Section 9A – Facilities to be provided for Occupational Health Survey

 The Chief Inspector or an Inspector may undertake safety and occupational health survey in a mine after
giving notice in writing to the manager, agent or owner at any time during the normal working hours of the
mine or at any time by day or night.
 The time spent by any person employed in a mine who is chosen for examination in the safety and
occupational health survey shall be counted towards his working time, so however that any overtime shall
be paid at the ordinary rate of wages.
 Any person who, on examination, is found medically unfit to discharge the duty shall be entitled to undergo
medical treatment at the cost of the owner, agent and manager with full wages during the period of such
treatment.
 If, after the medical treatment, the person is declared medically unfit to discharge the duty and such
unfitness is directly ascribable to his employment in the mine, the owner, agent and manager shall provide
such person with an alternative employment in the mine for which he is medically fit.
 Where no such alternative employment is immediately available, such person shall be paid by the owner,
agent and manager disability allowance.
 Where such person decides to leave his employment in the mine, he shall be paid by the owner, agent and
manager a lump sum amount by way of disability compensation.

9 Section 11 – Certifying Surgeons

 The Central Government may appoint qualified medical practitioners to be certifying surgeons.
 A certifying surgeon may authorise any qualified medical
practitioner to exercise all or any of his powers under this Act
for such period as the certifying surgeon may specify with the
approval of the Central Government.
 No person shall be appointed to be a certifying surgeon who
becomes the owner, agent or manager of a mine, or is or
becomes directly or indirectly interested therein, or in any
process or business carried on therein or in any patent or
machinery connected therewith, or is otherwise in the employment of the mine.

10 Section 12 – Committees
 The Central Government shall constitute a Committee consisting of —
• a person in the service of the Government, not being the Chief Inspector or an Inspector, appointed
by the Central Government to act as Chairman.
• the Chief Inspector of Mines
• 2 persons to represent the interests of miners appointed by the Central Government.
• two persons to represent the interests of owners of mines appointed by the Central Government.

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• 2 qualified mining engineers not directly employed in the mining industry, appointed by the Central
Government.

11 Section 13 – Functions of Committees

 Consider proposals for making rules and
regulations under this Act and make appropriate
recommendations to the Central Government.
 Enquire into such accidents or other matters as
may be referred to it by the Central Government
from time to time and make reports thereon;
and
 Hear and decide such appeals or objections
against notices or orders under this Act or the
regulations, rules or bye-laws thereunder, as
are required to be referred to it by this Act or
as may be prescribed.

12 Section 16 – Notice to be given of Mining Operations

 The owner, agent, or manager of a mine shall give notice in writing relating to the mine to the Chief
Inspector, the Controller, Indian Bureau of Mines and the district magistrate of the district in which the
mine is situate before the commencement of any mining operation
 Any notice given shall be so given as to reach the persons concerned at least one month before the
commencement of any mining operation.

13 Section 17 - Managers
 Every mine shall be under a sole manager who shall have the prescribed
qualification and the owner or agent of every mine shall appoint a person
having such qualification to be the manager.
 Owner or agent may appoint himself as manager if he possesses the prescribed
qualifications.

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 The manager shall be responsible for the overall management, control, supervision and direction of the
mine and all such instructions when given by the owner or agent shall be confirmed in writing forthwith.

14 Section 19 – Drinking Water

 In every mine, effective arrangements shall be made to provide and maintain at suitable points conveniently
situated a sufficient supply of cool and wholesome drinking water for all persons employed therein.
 All such points shall be legibly marked `DRINKING WATER’ in a language understood by a majority of the
persons employed in the mine.
 No such point shall be situated within 6 meters of any washing place urinal or latrine unless a shorter
distance is approved in writing by the Chief Inspector.

15 Section 20 – Conservancy
 There shall be provided a sufficient number of latrines and urinals of
prescribed types separately for males and females in every mine so
situated as to be convenient and accessible to persons employed in the
mine at all times.
 All latrines and urinals provided shall be adequately lighted, ventilated
and at all times maintained in a clean and sanitary condition.
 The Central Government may specify the number of latrines and urinals
to be provided in any mine, in proportion to the number of males and
females employed in the mine.

16 Section 21 – Medical Appliances

 In every mine, there shall be provided and maintained to be readily
accessible during all working hours such number of first-aid boxes or
cupboards.
 Every first-aid box or cupboard shall be kept in the charge of a responsible
person who is trained in such first-aid treatment and who shall always be
readily available during the working hours of the mine.
 In every mine wherein more than 150 persons are employed, there shall be
provided and maintained a first-aid room of such size with such equipment
and in the charge of such medical and nursing staff as may be prescribed.

17 Section 23 – Notice to be Given of Accidents

 Whenever there occurs in or about a mine –
• an accident-causing loss of life or serious bodily injury, or
• an explosion, ignition, spontaneous heating, outbreak of fire or irruption or inrush of water or other
liquid matter, or
• an influx of inflammable or noxious gases, or
• a breakage of ropes, chains or other gear by which persons or materials are lowered or raised in a shaft
or an incline, or
• an overwinding of cages or other means of conveyance in any shaft while persons or materials are
being lowered or raised, or

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• a premature collapse of any part of the working, or

• any other accident which may be prescribed,

the owner, agent, or manager of the mine shall give notice of the occurrence to such authority as may be
prescribed, and he shall simultaneously post one copy of the notice on a special notice board at a place
where it may be inspected by trade union officials, and shall ensure that the notice is kept on the board for
not less than 14 days from the date of such posting.
 Where a notice given relates to an accident causing loss of life, the authority shall make an inquiry into the
occurrence within 2 months of the receipt of the notice and, if the authority is not the Inspector, he shall
cause the Inspector to make an inquiry within the said period.
 The CG may direct that accidents which cause bodily injury resulting in the enforced absence from work
of the person injured for a period exceeding 24 hours shall be entered in a register in the prescribed form.
 A copy of the entries in the register shall be sent by the owner, agent, or manager of the mine, on or before
the 20th day of January in the year following that to which the entries relate, to the Chief Inspector.
 Whenever occurs an accident-causing loss of life or serious bodily injury, the place of an accident shall not
be disturbed or altered before the arrival or without the consent of the Chief Inspector or the Inspector,
unless such disturbance or alteration is necessary to prevent any further accident, to remove bodies of the
deceased, or to rescue any person from danger, or unless discontinuance of work at the place of accident
would seriously impede the working of the mine but where the Chief Inspector or the said Inspector fails
to inspect the place of accident within 72 hours of the time of the accident, work may be resumed at the
place of the accident.

18 Section 28 – Weekly Day of rest

 No person shall be allowed to work in a mine on more than 6 days in any one week.

19 Section 29 – Compensatory Days

of rest
 Any person employed in a mine is
deprived of any of the weekly days of
rest, he shall be allowed, within the
month in which such days of rest were
due to him or within the 2 months
immediately following that month, compensatory days of rest equal in number to the days of rest of
which he has been deprived.

20 Section 30 – Hours of work above ground

 No adult employed above ground in a mine shall be required or allowed to work for more than 48 hours in
any week or for more than 9 hours in any day. Provided that the daily maximum hours may be exceeded
in order to facilitate the change of shifts subject to the previous approval of the Chief Inspector.
 The periods of work of any such adult shall be so arranged that, along with his interval for rest, they
shall not in any day spread over more than 12 hours, and that he shall not work for more than 5 hours
continuously before he has had an interval for rest of at least half an hour: Provided that the Chief
Inspector may permit the spread-over to extend over a period not exceeding 14 hours in any day.
 Persons belonging to two or more shifts shall not be allowed to do work of the same kind above ground

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at the same time: Provided that persons shall not be deemed to belong to separate shifts by reason only
of the fact that they receive their intervals for rest at different times.

21 Section 31 – Hours of Work below Ground

 No adult employed below ground in a mine shall be allowed to work for more than 48 hours in any week
or for more than 8 hours in any day: Provided that the daily maximum hours may be exceeded in order to
facilitate the change of shifts subject to the previous approval of the Chief Inspector.
 No work shall be carried on below ground in any mine except by a system of shifts so arranged that the
period of work for each shift is not spread-over more than the daily maximum hours.
 No person employed in a mine shall be allowed to be present in any part of a mine below ground except
during the periods of work shown in respect of him in the register maintained.

22 Section 33 – Extra Wages for Overtime

 Where in a mine a
person works above
ground for more
than 9 hours in any
day, or works below
ground for more than
8 hours in any day or
works for more than
48 hours in any week
whether above ground
or below ground, he
shall in respect of such
overtime work be
entitled to wages at
the rate of twice his
ordinary rate of wages, the period of overtime work being calculated on a daily basis or weekly basis,
whichever is more favourable to him; and
 Where any person employed in a mine is paid on piece-rate basis, the time-rate shall be taken as equivalent
to the daily average of his full-time earnings for the days on which he actually worked during the week
immediately preceding the week in which overtime work has been done, exclusive of any overtime, and
such time-rate shall be deemed to be the ordinary rate of wages of such person:
Provided that if such person has not worked in the preceding week on the same or identical job, the time-
rate shall be based on the average for the days he has worked in the same week excluding the overtime
or on the daily average of his earnings in any preceding week, whichever is higher.

23 Section 34 – Prohibition of Employment of Certain Persons

 No person shall be required or allowed to work in a mine if he has already been working in any other mine
within the preceding twelve hours.

24 Section 35 – Limitation of Daily hours of work

 No person employed in a mine shall be required or allowed to work in the mine for more than ten hours
in any day inclusive of overtime.

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25 Section 36 – Notices regarding hours of work

 The manager of every mine shall cause to be posted outside the office of the mine a notice stating the
time of the commencement and of the end of work at the mine and, if it is proposed to work by a system
of relays, the time of the commencement and of the end of work for each relay.
 The notice shall be
posted not less than
7 days before the
commencement of
work.
 The notice shall also
state the time of the
commencement and
of the intervals for rest
for persons employed
above ground and
a copy thereof shall
be sent to the Chief
Inspector, if he so
requires.
 Where it is proposed to make any alteration in the time fixed or for the end of work or for any relay or
in the rest intervals fixed, an amended notice shall be posted not less than 7 days before the change is
made, and a copy of such notice shall be sent to the Chief Inspector not less than 7 days before such
change.

26 Section 40 – Employment of Persons below 18 years of Age

 No person below 18 years
of age shall be allowed to
work in any mine or part
thereof.
 Apprentices and other
trainees (not below 16
years of age) may be
allowed to work under
proper supervision in a
mine or part thereof by the
manager:
Provided that in the case
of trainees, other than
apprentices, prior approval of the Chief Inspector or an Inspector shall be obtained before they are
allowed to work.

27 Section 46 – Employment of Women

 No woman shall be employed—
• in any part of a mine which is below ground
• in any mine above ground except between the hours of 6 A.M. and 7 P.M.

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 Every woman employed in a mine above

ground shall be allowed an interval of
not less than 11 hours between the
termination of employment on any one
day and the commencement of the next
period of employment.
 The Central Government may vary the
hours of employment above ground of
women in respect of any mine or class or
description of mine, so however that no
employment of any woman between the
hours of 10 P.M. and 5 A.M. is permitted
thereby.

28 Section 52 – Annual Leave with Wages

 Every person employed in a mine who has completed a calendar years’ service therein shall be allowed,
during the subsequent calendar year, leave with wages, calculated –
• in the case of a person employed below ground, at the rate of one day for every 15 days of work
performed by him, and
• in any other case, at the rate of one day for every 20 days of work performed by him.
 A calendar years’ service shall be deemed to have been completed —
• in the case of a person employed below ground in a mine, if he has during the calendar year put in not
less than 190 attendances at the mine; and
• in the case of any other person, if he has during the calendar year put in not less than 240 attendances
at the mine.
Explanation –
• any days of lay-off by agreement or contract or as permissible under the standing order.
• in the case of a female employee, maternity leave for any number of days not exceeding twelve weeks;
and
• the leave earned in the year prior to that in which the leave is enjoyed.
shall be deemed to be the days on which the employee has worked in a mine for the purpose of
computation of the attendances, but he shall not earn leave for these days.
 A person whose service commences otherwise than on the first day of January shall be entitled to leave
with wages in the subsequent calendar year –
• in the case of a person employed below ground in a mine, he has put in attendances for not less than
one-half of the total number of days during the remainder of the calendar year; and
• in any other case, he has put in attendances for not less than two-thirds of the total number of days
during the remainder of the calendar year.
 Any leave not taken by a person to which he is entitled in any one calendar year shall be added to the
leave to be allowed to him during the succeeding calendar year:
Provided that the total number of days of leave which may be accumulated by any such person shall not
at any one time exceed 30 days in all:
Provided further that any such person who has applied for leave with wages but has not been given such
leave shall be entitled to carry forward the unavailed leave without any limit.
 Any such person may apply in writing to the manager of the mine not less than 15 days before the day on

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which he wishes his leave to begin, for all leave or any portion thereof then allowable to him.
Provided that the number of times in which leave may be taken during any one calendar year shall not
exceed three.
 If a person employed in a mine wants to avail himself of the leave with wages due to him to cover a period
of illness, he shall be granted such leave even if the application for leave is not made within the time
specified.
 The unavailed leave of a person employed in a mine shall not be taken into consideration in computing
the period of any notice required to be given before the termination of his employment.

29 Section 54 – Payment in advance in certain cases

 Any person employed in a mine who has been allowed leave for not less than four days, shall, before his
leave begins, be paid the wages due for the period of the leave allowed.

30 Section 71 – Owner etc., to report to the Chief Inspector in certain cases

 Where the owner, agent, or manager of a mine, as the case may be, has taken proceedings under this Act
against any person employed in or about a mine in respect of an offence under this Act, he shall within 21
days from the date of the judgment or order of the court report the result thereof to the Chief Inspector.

31 Section 82 – Decision of question whether a mine is under this Act

 If any question arises as to whether any excavation or working or premises in or adjacent to and belonging
to a mine, on which any process ancillary to the getting, dressing or preparation for sale of minerals or of
coke is being carried on is a mine within the meaning of this Act, the Central Government may decide the
question, and a certificate signed by a Secretary to the Central Government shall be conclusive on the
point.

Concept Check
Q. As per the provisions of the Mines Act, 1952, Adult means a person who has completed his:
(a) 16th year
(b) 15th year
(c) 18th year
(d) 21st year

Ans: C

Concept Check
Q. As per the Mines Act, 1952, no drinking water points shall be situated within ______ meters of any
washing place urinal or latrine
(a) 10
(b) 15
(c) 7
(d) 6

Ans: D

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