Marathwada Mitra Mandal’s Polytechnic

Unit 5 Legislative Acts

Course Outcome Understand Various Provision of Industrial Acts

4.1 Necessity of Acts, Important Definition & main provisions of Acts

4.2 Industrial Acts:
Indian Factory Act
Industrial Dispute Act
Workman Compensation Act

 Introduction

The Ministry of Labour and Employment seeks to protect and safeguard the interests of
workers in general and those who constitute the poor, deprived and disadvantaged sections of
the society.
The following are the thrust areas of the Government concerning labour laws:
 Labour policy and legislation;
 Safety, health and welfare of labour;
 Social security of labour;
 Policy relating to special target groups such as women and child labour;
 Industrial relations and enforcement of labour laws in the central sphere;
 Labour and employment statistics;
 Emigration of labour for employment abroad;
 Employment services and vocational training;
 Administration of central labour and employment services
The various labour legislations enacted by the Central Government can be classified into the
following different broad categories:
A. Laws relating to Industrial Relations-
1. Industrial Disputes Act, 1947
2. Trade Unions Act, 1926
B. Laws relating to Wages
1. Minimum Wages Act, 1948
2. Payment of Wages Act, 1936

3. Payment of Bonus Act, 1965

C. Laws relating to Social Security
1. Employees' Provident Funds and Miscellaneous Provisions Act, 1952
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2. Employees' State Insurance Act, 1948

3. Labour Welfare Fund Act (of respective States)

4. Payment of Gratuity Act, 1972

5. Employee's Compensation Act, 1923

D. Laws relating to Working Hours, Conditions of Services and Employment
1. Factories Act, 1948

2. Industrial Employment (Standing Orders) Act, 1946

3. Shops and Commercial Establishments Act (of respective States)

4. Contract Labour (Regulation and Abolition) Act, 1970

5. Inter-State Migrant Employee (Regulation of Employment and Conditions of Service)

Act, 1979

6. Weekly Holiday Act, 1942

7. National and Festival Holidays Act (of respective States) 1963

8. The Plantation Labour Act, 1951

9. The Mines Act, 1952

10. The Dock Workers (Safety, Health & Welfare) Act, 1986
E. Laws relating to Equality and Empowerment of Women
1. Equal Remuneration Act, 1976

2. Maternity Benefits Act, 1961

F. Prohibitive Labour Laws
1. Bonded Labour System (Abolition), Act, 1976

2. Child Labour (Prohibition & Regulation) Act, 1986

3. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

4. The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal) Act,
2013
G. Laws relating to Employment and Training
1. Apprentices Act, 1961

2. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

 Necessity of Legislative acts

1. They improve industrial relations, i.e., employee-employer relations.

2. They help in paying fair wages to workers.

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3. They minimize unrest among the workers.
4. They help to give compensation to workers, victims of accidents.
5. They help in reduces conflicts, strikes etc,

6. They help to procure job security for the workers.

7. They help to promote wholesome environmental conditions in the industry.

8. They help in fixing hours of work, rest pauses, etc.

 THE FACTORIES ACT, 1948

Objective and Scope
 The main object of the Factories Act, 1948 is to ensure adequate safety measures and
to promote the health and welfare of the workers employed in factories.
 The Act also makes provisions regarding employment of women and young persons
(including children and adolescents), annual leave with wages etc.
 The factories act regulates conditions of work (health, safety etc.) in factories, it
safeguards the interest of workers and it is for the welfare of factory workers.
 This act received the assent of Governor-General of India on September 23, 1948 and
came into force on April 1, 1949.
 This act is applicable to any factory in which ten or more than ten workers are
working.
 The factories act has a provision in respect of Employee health and safety, Hours of
work, .Sanitary conditions and wholesome work environments, Employee welfare,
Leave with wages.
Applicability of the Factories Act, 1948:
The Act is applicable to the premises wherein:
(i) 10 or more workers are employed with use of power
(ii) 20 or more workers are employed without the use of power
(iii) Less than 10 workers, if activity is notified by the State Government
 Important definitions
 Factory:- A place wherein ten or more persons are working and in which a
manufacturing process is going on using electricity, steam, oil, etc.
 Manufacturing process:- A process formaking, altering, repairing, finishing,
packing, washing, cleaning, or otherwise treating a substance for its use, sale,
transport, disposal, etc. pumping oil, water or sewage, or generating, transforming,
or transmitting power, orcomposing types for printing, printing for letterpress,

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lithography, photogravure or other similar process or book binding ; constructing,
reconstructing, repairing, refitting, finishing or breaking up ships or vessels.
 Worker:- Worker means a person employed directly or through any agency,
whether for wages or not, in any manufacturing process or in cleaning any part of
the machinery.
 Adult:- A person who has completed his eighteenth year of age.
 Child:- A person who has not completed his fifteenth year of age.
 Power:- Electrical energy or any other form of energy which is mechanically
transmitted and is not generated by human or animal agency.
 Machinery:- It includes Prime movers; engine, motor, etc. Transmission
machinery: shaft, wheel, drum, pulley, belt etc. And all other appliances whereby
power is generated transformed or transmitted.
 Occupier of factory.:-A person who has ultimate control over the affairs of factory
and where the- said affairs are entrusted to a managing agent
Approval, Licensing and Registration of Factories
Before starting a factory,
 Take permission of the state government or chief inspector for the site on which
factory is to be made.
 Get the factory plans and specifications approved by the inspector of industries.
 Pay the necessary fees and get the registration and licensing of the factory.
The Inspecting Staff
State government appoints Chief Inspector and other Inspectors who may
i. Enter any factory,
ii. Make examination of premises, plants, machinery and any documents related to
factory.
Duties of the Inspectors
The Inspectors are required:
(i) To carry out duties as laid down under Section 9 (b) and (c);
(ii) To ensure that statutory provisions and rules framed are carried out properly; an
(iii) To launch prosecutions against factory-owners under the provision of Chapter
X of the Act.
Certifying Surgeons
State government may appoint qualified medical practitioners as certifying surgeons for
i. The examination and certification of young workers, and
ii. The examination of workers engaged in dangerous occupation or processes.
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 Main Provisions of the Act.

Welfare Measures for Workers
They are of two types – health measures and welfare measures
a. Health Measures
1. Cleanliness
 Removal and disposal of dirt from floors, benches everyday.
 Washing of floors of work room at least every week, using disinfectant.
 Effective means to drainage to avoid collection of water, etc., on the work floor.
 All inside walls and partitions, all ceiling tops of rooms, passage and staircase to be
repainted once in 5 years if they are already painted

2. Disposal of Wastes and Effluents

Effective and suitable arrangements should be made for the disposal of wastes and effluents due to
the manufacturing process.
3. Ventilation and Temperature
In every factory, effective and suitable provision shall be made for securing and maintaining in
every workroom,
(i) Adequate ventilation by fresh air circulation,

(ii) Suitable temperature to provide conditions of comfort

4. Dust and Fumes
Employer shall take necessary steps to keep workrooms free from dust or fumes offensive or
injurious to the health of the workers.
5. Artificial Humidification
In factories (e.g., textile) where humidity of air is artificially increased, state government may
make rules ( Prescribing standard of humidification ;
(i) Regulating the method of artificially increasing humidity ;

(ii) Directing prescribed test for determining humidity ; and

6. Overcrowding

No workroom should be overcrowded to an extent, which is injurious to the health of workers.

7. Lighting

Light whether artificial or natural or both, should be sufficient and suitable in all workrooms,
Skylights and glazed windows for lighting the workrooms should be kept clean and unobstructed.

8. Drinking Water
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Section 18 deals with the provisions relating to arrangements for drinking water in factories. In
every factory, effective arrangements shall be made to provide and maintain at suitable points
conveniently
9. Conservancy Arrangements
In every factory, there shall be provided and maintained, separate arrangement for toilets for male
and female workers at convenient places. These should be adequately lighted, ventilated and
maintained in a clean sanitary condition.
10. Spittoons
Section 20 (1) lay down that in every factory, there shall be provided a sufficient number of
spittoons in convenient places. They shall be maintained in a clean and hygienic condition.

b. Welfare measures
 Washing facilities
 Washing facilities adequately screened for male and female workers.
 Facilities for sitting Suitable sitting facilities shall be provided for all workers obliged to
work in standing position.
 First aid appliances
 For every 150 workers, minimum one fully equipped first-aid box shall be kept available
during all working hours
 Canteens: A canteen shall be provided in each factory in which more than 250workers are
ordinarily employed.
 Shelters, rest-rooms and Lunch-rooms Every factory in which more than 150 workers are
ordinarily employed, adequate, suitable, clean, sufficiently lighted Creches:
 Every factory shall provide clean, adequately lighted and ventilated rooms for the use of
children (under the age of six years) of women workers, if the number of such women
workers exceeds 30.
 Welfare officers.
Safety measures
1. Encasing and fencing of machinery in every factory the following shall be securely
fenced unless they are in such position as to be safe for each worker
 Moving parts of prime mover and flywheel connected to it.
 The head race and tail race of water wheel and water turbine.
 Any part of a stock bar projecting beyond the lathe head-stock.
2. Work on or near machinery in motion

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Any part of machinery if it is required to be examined while it is in motion shall be examined
only by a specially trained adult male worker wearing tight fitting clothing.
3. Employment of young person’s on dangerous machines:
No young person shall work on a dangerous machine unless he has got sufficient training to
work at that machine and he is under adequate supervision of an adult experienced
worker/supervisor.
4. Hoists and lift:
Every hoist and lift shall be of good mechanical construction, adequate strength and
sufficiently protected and fitted with gates and adequately maintained and periodically (at
least once in six months) examined.
5. Lifting machine, chains, ropes and lifting tackles Factory cranes and other lifting machines
such as crab, winch toggle, pulley block, etc.
6. Pressure plants

It should be ensured that the working pressure of such parts does not exceed the safe value.

7. Floors, stairs and means of access to different places

They should be of sound construction, properly maintained and provided with handrails.

8. Pits, sumps, openings in floors, etc., shall be either securely covered or suitably fenced

9. Excessive weights No person shall be asked to lift, carry or move any load so heavy as to
cause him an injury.

10. Protection of eyes

To protect the eyes of workers from the flying particles (such as in fettling, rivet cutting, scale
removal, etc.) or from exposure to welding rays, each worker shall be provided with effective
screens of suitable goggles.
11. Precautions against dangerous fumes
No person shall be allowed to enter any confined space, chamber, tank, pit, etc. in which
dangerous fumes are likely to be present so as to involve risk to the entering person.
12. Explosive or inflammable dust, gas, etc. If a manufacturing process is producing dust, gas,
fumes or vapour which can explode on ignition,

(i) The plant should be effectively enclosed ; and

(ii) Such dust, gas fume, etc., should not be allowed to accumulate.

13. Precautions in case of fire Every factory shall be provided with means as follows and
others to help escape in case of fire :

(i) Fire warning signal.

(ii) Unlocked doors and openings towards outside the workroom.

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(iii)Free passageways and easily openable windows.

Working Hours
 Weekly hours An adult worker shall be required to work in the factory for not more than
48 hours a week.
 Weekly holidays No adult worker shall be required to work on Sunday unless the factory
manager substitutes Sunday by a holiday one or three days immediately before or after
Sunday.
 Daily hours No adult worker shall be required to work for more than nine hours on any
day.
 Intervals for rest
 No adult worker shall be required to work for more than 5 hours continuously
 Extra wages for over-time
 If a worker works for more than nine hours on any day or for more than 48 hours in any
week, he will get his overtime wages at the rate of twice his ordinary rate of wage (Le.
basic wages + allowances).
 Restriction on double employment
 No adult worker shall be allowed to work in a second factory on any day on which he has
already been working in one factory.
 Register of adult workers
 Restrictions on employment of women No women shall be employed in any factory except
between the hours of 6 A.M. and 7 P.M.
Employment of Young Persons
1. Prohibition of employment of young children
No child under 14 years of age shall be allowed to work in any factory.
2. Non-adult workers
A child who has even completed his 14 years of age shall not be allowed to work in a
factory unless he carries while at work a token giving reference to certificate of fitness.
3. Certificate of fitness
It is a certificate of fitness for working in a factory which is given to a young person by a
certifying surgeon after examining him (i.e. the young person).

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Working hours for children
Act regulates the working hours for children above age of 14 years as eligible for employment in a
factory. They can be employed for maximum hours of work lasting 4-1/2 hours in a day. The
other prohibitions relating to their employment are:
 The period of work is to be limited to two shifts only
 The shifts are not to overlap
 The spread-over is not to exceed 5 hours
 The child is to be employed only in one relay
 The spread-over is not to change except once in 30 days
 Employment during night, i.e. Between 10 p.m. And 6 a.m. is prohibited.
Annual Leave with Wages
 A worker who has worked for 240 days or more during a calendar year shall be permitted
during the subsequent calendar year, leave with wages for a number of days at the rate of
 One day for every 15 days of work performed by a child worker.
 One day for every 20 days of work performed by an adult worker.

Special Provisions
 Dangerous operations - Where the state government feels that any operation is of serious
risk or bodily injury, poisoning or disease, it may make rules :
1. Declaring the operation dangerous;
2. Stopping employment of women and children in this operation
 providing protection of all concerned with that operation
 Periodical medical check-up of all concerned with that operation, etc.

Notice of accidents
An accident causing death or bodily injury due to which the worker cannot work for a period of
48hours or more immediately after the accident.

Notice of disease.
If a worker is suffering from any disease specified in the schedule, a report immediately shall be
sent to Chief Inspector giving particulars of the worker and the disease from which he is suffering.

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 Penalties and procedure

General Penalty for Offences

 In case of any contravention of any of the provisions of this Act, the occupier and factory
manager shall each be guilty of an offence and punishable with up to 2 years of imprisonment
or fine up to Rs. 100,000 or both.
 If contravention continues after conviction, there will be a fine of Rs. 1000 per day.
 After being convicted for an offence, if the person does contravention of the same provision
again, he shall be punishable with imprisonment up to 3 year, a fine up to Rs 10000 to 3 lakhs
or both. Penalty for Obstructing Inspector

Appeals
 An occupier/manager on whom a written order by an Inspector has been served under
the provisions of the Act may within 30 days of the service of order, appeal against it
to the prescribed authority.
 No factory worker will misuse any appliance provided for the purpose of securing
health, safety and employee welfare.

 Recommendation of the National Commission on Labour

The Government of India has set up the second national labour on 15th October, 1999. The
commission has made valuable suggestions to improve the harmonious relations among the
labour working in the factory premises.

 Existence of child labour in hazardous industries is a major obstacle for Indian

government and steps should be taken to eradicate it from the country. For this, a
special scheme of establishing the special schools to provide the non-formal education,
vocational training, supplementary nutrition, stipends, health care, etc. should be
provided to children withdrawn from employment in hazardous industries.
 Ministry of labour in 1978 formulated a scheme for the rehabilitation of the bonded
laborers. The responsibility for the identification, release and rehabilitation of the free
bonded laborer rest entirely with the state government. Bonded laborers on release is
paid immediately 1000/- as subsistence allowance and is rehabilitated as per the
situation with a rehabilitation packages of 10,000 keeping in view the price escalation
and increase in the cost of the rehabilitation packages.
 With the intention to focus on the heath of the women workers & to improve their
conditions, a women cell has been set up which provides the opportunities for
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increasing the employment opportunities for women & providing grants & aids to the
voluntary organizations for carrying out the research on the problems faced by the
women workers. It also helps the women to be aware of their rights and opportunities
so as to become economically independent.
 To achieve for the occupational safety and health of the workers, the Directorate
General of Mines Safety (DGMS) and Directorate General of Factory Advice Services
and labour Institutes( DGFASLI) have been set-up in mines, ports and factories. It
monitors the working environment, man-machinery interface training and safety
requirements of the workers.5. It also recommended that the formation of the craft and
occupation trade unions should be discouraged and formation of the industrial trade
unions and industrial federations should be encouraged.
 Penalties may be legally provided to curb a management policy of victimization and
similar unfair labour practices which prevent the emergencies of internal leadership.

 THE INDUSTRIAL DISPUTE ACT, 1947

Introduction and scope of Act
 According to Industrial Disputes Act, 1947, Industrial dispute is any dispute or
difference between employees and employees, or between employers and
employers, which is connected with the employment or non-employment, or the
terms of employment or with the conditions of work of any person.
 Conflict is inevitable in the industrial organization. Labour and management
oppose each other in numerous ways in the course of daily work.
Objectives of the Act
 The Preamble to the Act reads thus, "An Act to make provision for the
investigation and settlement of industrial disputes and for certain other purposes."
1. To ensure social justice to both employers and employees and advance progress of
industry by bringing about harmony and cordial relationship between the parties.
2. To settle disputes arising between the capital and labour by peaceful methods and
through the machinery of conciliation, arbitration and if necessary, by approaching the
tribunals constituted under the Act. If disputes are not settled, it would result in strikes
or lockouts and entail dislocation of work, essential to the life of the community.
3. To promote measures for securing and preserving amity and good relations between
the employer and workmen.
4. To prevent illegal strikes and lockouts.

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5. To provide compensation to workmen in cases of lay-off, retrenchment and closure.
6. To protect workmen against victimization by the employer and to ensure termination
of industrial disputes in a peaceful manner.

Causes of Industrial Disputes/Conflict

 Industrial includes three different possible sets of antagonists in industrial conflict.
However, the present discussion is confined to disputes arising between
management and workers.
 The causes of dispute are:
1. Economic causes – Wages, salaries, profit, etc.
2. Social causes – Low morale, corruption, pollution, rising unemployment
3. Political causes – Political rivalry, unstable government, etc.
4. Technical causes – Loss of jobs due to automation, unsuitable technology,
5. Psychological causes – Loss of job, propaganda, instigation, etc.
6. Market causes – Competition, loss, recession, etc.
7. Legal causes – Court order of closing down factories, shifting (under zoning
laws).

Important Aspects of the Act

 An industrial dispute may be referred to an Industrial tribunal.
 An award shall be binding on both the disputing parties for a period not exceeding
one year.
 Strikes and lockouts are prohibited during the pendency of, conciliation and
adjudication proceedings.
 In public interest or emergency, appropriate government can declare the following
industries to be a public utility service for a maximum period of 6 months,
Transport by land, air, and water, Foodstuff, Coal, Cotton textile, and Iron and
Steel.

Important Definitions
1. Award: It means an interim or a final determination of an industrial dispute. Decisions of
Labour Court and Industrial Tribunals are awards.

2. Average pay: It means the average of wages payable to employee:

 In case of monthly paid employee, in the 3 calendar months
 in the case of weekly paid employee, in the 4 completed weeks; and
 in the case of daily paid employee, in the 12 full working days.
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3. Industry: It means any business undertaking, manufacture, etc, It includes any calling, service,
employment, handicraft or industrial occupation or a vocation of employee.

4. Industrial dispute: It means any dispute or difference, between employers and employers,
employers and employee, employee and employee; and connected with employment, or non-
employment, or terms of employment or conditions of labour, or any person

5. Lay-off: It means Failure, refusal or inability of an employer, on account of shortage of coal,

power, raw material, accumulation of stock, breakdown of machinery or for any other reason to
continue to employ workers

6. Lock-out: It means the closing of a place of employment or suspension of work or the refusal
by employer to continue to employ any number of workers employed by him.

7. Public utility services: It mean Railway or transport service, Postal, telegraph or telephone
service, Any industry supplying power, light or water, Sanitation, Foodstuffs, and Coal, textile,
etc.
8 Retrenchment: It means the termination of the services of a worker by the employer for any
reason whatsoever other than due to disciplinary action.

9. Strike: It means refusal to work or cessation of work by a body of employee for enforcement of
a demand against the employer during an industrial dispute.

10. Settlement: It implies a settlement arrived at in the course of conciliation proceeding. It

includes a written agreement between the workers and employer.

11. Employee: It means any person (including an apprentice) employed in any industry for hire or
award to do manual, technical, supervisory or clerical work.

Authorities Under This Act

1. Works Committee

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 Any industry, in which 100 or more workers are and have been employed on any day in
the preceding 12 months, shall constitute a works committee.
 Works committee shall have representatives of workers and employer both. Employee
representatives will not be less than those of employer in number.

2. Conciliation officers
 Conciliation officers will be appointed by any Appropriate Government and they shall
mediate and promote the settlement of industrial disputes.
3. Board of Conciliation

 Appropriate Government may constitute a Board of Conciliation to promote settlement of

an industrial dispute.
 Board of conciliation will be headed by a chairman (an independent person) and shall have
two or four other members which will be representatives of the parties to dispute.
4. Courts of Enquiry

 Appropriate Government may constitute a court of enquiry to look into any matter
connected with industrial dispute Court (of enquiry) may consist of one or more
independent persons.
 The court shall inquire and submit a report ordinarily within six months from the
commencement of inquiry.
5 Labour Court
 The appropriate government may constitute Labour Court consisting of one person only
for adjudication second of industrial disputes relating to any matter specified in the 2nd
Schedule.

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 performing such
other functions as may be assigned to them under this Act.
 A Tribunal shall consist of one person only to be appointed by the appropriate
Government.

National Tribunals

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 Under Section 7-B, the Central Government alone has been empowered to constitute one
or more National Tribunals for the adjudication of industrial disputes which
(a) involve questions of national importance or
(b) 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.
 A National Tribunal shall consist of one person only to be appointed by the Central
Government.
 A person shall not be qualified for appointment as the Presiding Officer of a National
Tribunal unless: he is, or has been, a Judge of a High Court;

Duties
When a matter has been referred to a National Tribunal, it must adjudicate the dispute
expeditiously and submit its award to the Central Government. (Section 15)
Strikes and Lock-out
1. No employee of a public utility service shall go on strike,
(i) Without giving notice of strike, within six weeks before striking ; or
(ii) Within fourteen days of giving such notice; or before the expiry of date of strike
mentioned in the notice. ; or
(iii) During the pendency of conciliation proceeding.

2. No employer of any public utility service shall lock-out,

(i) without giving notice of lock-out within six weeks before locking out, or

(ii) before the expiry of date of lockout mentioned in the notice, or

(iii) during the pendency of conciliation proceeding.

2. Prohibition of financial aid to illegal strikes and lock-out.

Lay-off and Retrenchment

Difference between lay-off and lock-out

 In lay-off, the employer refuses to give employment due to certain specified reasons, but
in lock-out, there is deliberate closure of the business and employer locks out the workers
not due to any such reasons.
 In a lock-out, there is no question of any wages or compensation being paid unless the
lock-out is held to be unjustified.
 Lay-off is the result of trade reasons but lock-out is a weapon of collective bargaining.
 Lock-out is subject to certain restrictions and penalties but it is not so in case of lay-off.
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Right of Employee laid off for compensation
A worker having more than one year of continuous service under an employer, if is laid off, shall
get compensation equal to 50% of the total of his basis wages and dearness allowance, subject to
the following limitations :
Provided that if during any period of 12 months, a employee is so laid-off for more than 45 days,
no such compensation shall be payable in respect of any period of the lay-off after the expiry of
the first 45 days, if there is an agreement to that effect between the employee and the employer,
etc.
Penalty for Illegal Strikes and Lock-outs
Any workman who commences, continues or otherwise acts in furtherance of a strike which is
illegal under this Act, shall be punishable with imprisonment for a term which may extend to one
months, or with find which may extend to fifty rupees, or with both.
Penalty for Instigation etc.
Any person who instigates or incite others to take part in, or otherwise acts in furtherance of a
strike or lock-out which is illegal under this Act, shall be punishable with imprisonment for a term
which may extend to six months, or with fine which may extend to one thousand rupees, or with
both (section 27).
Penalty for giving financial aid to illegal strikes:
Any person who knowingly expends or supplies any money in furtherance or support of a strike
which is illegal under this Act, shall be punishable with imprisonment for a term which may
extend to one year, a fine which may extend to one thousand rupees, or both.
8. Power to arrest without warrant: Power to arrest without warrant. Not with standing
anything contained in the Code of Criminal Procedure of 1898 (5 of 1898), any police officer may
arrest without warrant any person who is reasonably suspected of having committed any offence
under this Act.
9. Act to override other laws: The provisions of this act and of any order issued there under,
shall have effect notwithstanding anything inconsistent therewith contained in the Industrial
Disputes Act of 1947 (14 of 1947), or in any other law for the time being in force.

Collective Bargaining
 Collective bargaining is a procedure by which the terms and conditions of workers are
regulated by agreements between their bargaining agents and employers.

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 Ever since the advent of modern trade unions, the workers have been pressurizing their
employers in aconcerted manner for improving the terms and conditions of employment,
but the term 'collective bargaining' was seldom used for this concerted action.
1. Marketing Concept: The marketing concept views collective bargaining as the means by
which labour is bought and sold in the market place. In this context, collective bargaining is
perceived as an economic and an exchange relationship. This concept focuses on the
substantive content of collective agreements on the pay hours of work, and fringe benefits,
which are mutually agreed between employers and trade union representatives on behalf of
their members.
2. Government Concept: The governmental concept of collective bargaining, on the other
hand, regards the institution as a constitutional system or rule making process, which
determines relation between management and trade union representatives.

 THE MINIMUM WAGES ACT, 1948

Objective
To prevent exploitation of the employees (workers), this act aims at fixing minimum wages
which they must get.

Important Aspects of the Act

The act lays down for fixation of
 A minimum time rate of wages,
 A minimum piece rate,
 A guaranteed time rate,
 An overtime rate, for different occupations, classes of work, for adults, children, etc.

Fixation and Revision of Minimum Wages

1. Appropriate government shall fix the minimum rates of wages for persons employed.
2. Appropriate government shall review at interval not exceeding five years, the minimum
rates of wages so fixed and revise the minimum rates.
3. In fixing or revising rates of wages: Management (22509)
Maharashtra State Board of Technical Education 115 different minimum rates of wages be
fixed for different scheduled employments, different classes of work and for adults, children
and apprentices,minimum rates of wages may be fixed either by hour, by day, by month or by
other longer wage period as may be prescribed.
Payment of Minimum Wages
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1. Minimum wages shall be Payable in cash.

2. An employer shall not pay less than the minimum wage rate fixed.

3. The government may

 fix number of working hours in a day ;
 provide a day for rest in every period of seven days ;
 provide payment for work on a day of rest at a rate not less than the overtime rate. These
provisions shall apply to
4. employees engaged on urgent work, preparatory or complementary work ;employees whose
employment is essentially intermittent, etc.
5. If an employee does two or more classes of work, each having a different minimum wage
rate, he shall get payment in respect of time spent in each class or work.

Maintenance of Records
Every employer shall maintain registers and other records giving details of employees, nature of
work performed by them, wages paid to them, receipts given by them, etc.

Inspectors and their Powers

Appropriate government may appoint Inspectors for the purpose of this act. he Inspectors shall
have the following powers:
(i) To enter at all reasonable hours, any premises for examining registers, records of wages, etc.

(ii) To examine any person.

(iii) To seize relevant records in respect of an offence.

Claims
An employee, an official of registered trade union on behalf of the employee or an Inspector can
apply to the Authority (e.g., commissioner for Employee’s Compensation, Labour commissioner,
etc.) appointed by appropriate government to hear and decide claims:
(i) Arising out of payment of less than minimum wage rate,

(ii) In respect of wages at the over-time rate,

(iii) In respect of payment of remuneration for days of rest, etc.

Offences and Penalties
An employer who contravenes any provision of the act, be punishable with fine extending up to
Rs. 500 and an imprisonment for a term up to six month or both.
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The Payment of Wages (Amendment) Act, 2017

The Payment of Wages (Amendment) Act, 2017 changes the method of payment of wages to the
employees. Now the employer can pay wages to its employees by the following modes without
obtaining written authorization (as required earlier):
i. in coin or currency notes; or

ii. by cheque; or

iii. by crediting them into his bank account.

 THE WORKMEN’S COMPENSATION ACT,1923

The Workmen's Compensation Act,1923 has been renamed as the Employees’ Compensation Act,
1923. For the words “workman” and “employee” and “employees” have been substituted
respectively for making the Act gender neutral.
Major features of the Act
 The worker (or his dependents) can claim compensation if the injury has been caused by
an accident in the course of the employment
 provided he was not under the influence of drink or drug and the accident was not due to
his will ful disobedience of the rules.
 The amount of compensation depends upon the result of the injury and the nature of
disablement.
 All fatal accidents are to be brought to the notice of the commissioner and the employer
shall deposit the amount of compensation with him (ie. the commissioner) within 30 days.

Important Definitions
1. Dependents mean
A widow, a minor son, unmarried daughter or a widowed mother, and If wholly or in part
dependent on the earnings of the worker at the time of his or her death,
(i) A widower, a minor brother and unmarried sister ;
(ii) A widowed daughter-in-law ; and

(iii) A minor child of predeceased daughter, etc.

2. Minor. A person below 18 years of age.

3. Partial disablement means disablement of temporary nature and which reduces the earning
capacity of an employee.

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4. Total disablement implies such disablement which (temporarily or permanently) incapacitates
an employee for all work and he cannot earn at all (for a period or forever).

5. Workman means a person (other than one whose employment is of casual nature and who is
employed otherwise than for the purpose of the employer's trade or business) who is

 A railway servant and not permanently employed in any administrative capacity ;

 Getting wages not exceeding
 Rs. 500-As per Act of 1923 .
 Rs 1000-As per Act modified in 1976.

Employer's Liability for Compensation

The employer is liable to compensate if
(i) injury has been caused by accident

(ii) during the course of employment; and

(iii) has resulted in employee’s death ; permanent or temporary, total or partial disablement.

The employer is not liable to pay compensation if

a) the injury disables a employee for less than 3 days ;

b) the injury is caused by an accident which occurred while the employee was under the influence
of drink or drugs ;

c) the injury is caused due to willful disobedience of the rules by the employee ; or

d) the injury is caused owing to the willful removal of any safety guard by the employee.

Employer’s Liability in Case of Occupational Diseases

The list of the occupational diseases is contained in Schedule III of the Act. Schedule III is
divided into three parts, A, B and C. To support any claim for compensation in case of
occupational disease in Part A, no specified period of employment is necessary; for diseases in
Part B, the workman must be in continuous employment of the same employer for a period of six
months in the employment specified in that part; and for diseases in Part C, the period of
employment would be such as is specified by the Central Government for each such employment,
whether in the service of one or more employers.
Amount of Compensation
(a) Where death results from the injury- An amount equal to 40% of the monthly wages of the
deceased employee multiplied by the relevant factor (Schedule iv) or an amount of 20,000 rupees,
whichever is more.
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(b)Where permanent total disablement results from the injury- An amount equal to 50% of the
monthly wages of theinjured employee multiplied by the relevant factor or an amount of 24000
rupees, whichever is more.
Distribution of Compensation
Payment of compensation in respect of death of a employee or under legal disability shall be
deposited by the employer with the commissioner. Employer should not make payment of
compensation directly.
An employer of course can give advance to any dependent on account of compensation not
exceeding Rs. 100.
Notice and Claims of Accident
An employee injured in an accident should first off all give in writing a notice of the accident to
the employer.
The purpose of giving a notice is to enable the employer to check the facts of the accident and also
to enable the employee to take steps to mitigate the consequences of the accident.
Medical Examination
An injured employee who has submitted a notice, shall present himself for the medical
examination, if the employer wants.
Such an offer by the employer must be free of charge and within 3 days from the time at which
service of notice has been affected.

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