Unit-4

Q Payment of Bonus Act, 1965, objective, Scope, Constitution

Answer
Introduction:
 The tradition of paying bonuses in India seems to have started during World War I,
when some textile mills gave their employees a 10% wage increase as a war bonus in
1917.
 In certain cases of labour disputes, the claim for bonus payment was also included.
The Full Bench of the Labour Appellate Tribunal established a bonus calculation
formula in 1950. In 1959, a demand was made to change the formula.
 It was decided at the second and third meetings of the eighteenth Session of the
Standing Labour Committee (G.O.I) in New Delhi in March/April 1960 to appoint a
Commission to look into the issue of bonuses and develop appropriate norms.
 The Government of India established a Tripartite Commission to examine the issue of
bonus payments based on earnings to employees working in establishments in a
detailed manner and make recommendations to the Government.
 The Commission's recommendations were adopted by the Indian government with
some modifications.
 The Payment of Bonus Act of 1965 was enacted to carry out these recommendations,
and it went into effect on September 25, 1965.
Meaning: The word "bonus" is not specified anywhere in the bonus payment act. A bonus is a
monetary reward that is above and beyond the standard payment. According to the
Cambridge dictionary, a bonus is an additional sum of money offered to you as a gift or
incentive for good performance. The primary goal of providing bonuses is to distribute the
company's profits to its workers and employees.
Scope and Coverage of the Payment of Bonus Act, 1965
 The Bonus Payment Act covers the entire India.
 It covers any establishment with twenty or more employees on any given day during
the accounting year, as well as any factory as specified by the factories act of 1948.
 Employee: According to  Section 2 (13) of the Act as any person (other than an
apprentice) employed on a salary or wage of not more than twenty one thousand
rupees per mensem in any industry to perform any skilled or unskilled manual,
supervisory, managerial, administrative, scientific, or clerical work for hire or
compensation, regardless of whether the terms of employment are express or implied
The Act does not apply to the following classes of employees:
Employees employed in:
o Life Insurance Corporation of India
o Industry carried on or under the authority of any department of Central Government
or a State Government or a Local Authority.
o Indian Red Cross Society or any other institution of like nature including its branches;
o Universities and other educational institutions;
 o Hospital, Chambers of Commerce and Social Welfare Institutions established not for
purposes of profits;
o employed through contractors on building operations;
o Reserve Bank of India;
o Industrial Finance Corporation of India, Deposit Insurance Corporation and other
financial corporation’s being set up financially assisted by the Government, and Unit
Trust of India, Agricultural Refinance Corporation, and Industrial Bank of India,
o Seamen as defined in Sec. 3(42) of the Merchant Shipping Act, 1958;
o Inland Water Transport establishment. (Section 32).
Objective behind the Act
 To impose statutory obligation on the employer of every establishment defined in the
Act to pay bonus to all eligible employees working in the establishments.
 To outline the principles of payment of bonus according to prescribed formula.
 To provide for payment of minimum and maximum bonus and linking in the payment
of bonus with the scheme of "set off" and "set on".
 To provide machinery for enforcement of bonus.
Case Laws: Jalan Trading v Mill Mazdoor Sabha:
the Supreme Court observed that the purpose of the Bonus Act was to maintain peace and
harmony between labour and capital by allowing workers to share the prosperity of the
establishment and prescribing the maximum and minimum rates of bonus, as well as the
scheme of "set-off" and set - on to not only secure the labour's right in the share of profits
but also to ensure a reasonable degree of uniformity.
Constitutionality of the Act
Case Law: Jalan Trading Company Ltd. v. Mill Mazdoor Sabha2
The constitutional validity of the act was challenged in the Supreme Court in the case of Jalan
Trading Company Ltd. v. Mill Mazdoor Sabha2, on the grounds of violation of Articles 14 and
19 of the Constitution. The Supreme Court ruled that the main provision of the Act which
required the payment of a minimum bonus was constitutional. The payment of a bonus is fair
since it complies with Articles 39 and 43 of the Constitution.
Conclusion
The Payment of Bonus Act of 1965 aims to legalise the practise of various establishments
paying bonuses. It provides a mechanism for calculating bonus based on profit and
performance. It allows workers to make more money than the minimum wage or salary. This
Act establishes various procedures for different types of businesses, such as banks and
government agencies, as well as businesses that are not corporations or firms. This Act also
establishes a rigorous redress process in addition to the procedure.

Q2. What is Bonus? Examine the Eligibility and disqualification for

bonus?
Answer
Introduction:
 The Payment of Bonus Act, 1965 deals with the matters connected with the payment
of bonuses to people employed in certain establishments.
  It extends to the whole of India and it came into force on 25th September 1965.
 This act shall apply to every factory and other establishments wherein twenty or more
persons are employed on any day during an accounting year.
 It extends to the whole of India and is applicable to every factory and to every other
establishment where 20 or more workmen are employed on any day during an
accounting year.
Bonus as Under the Act
 The word "bonus" is not specified anywhere in the bonus payment act.
 A bonus is a monetary reward that is above and beyond the standard payment.
 According to the Cambridge dictionary, a bonus is an additional sum of money offered
to you as a gift or incentive for good performance. The primary goal of providing
bonuses is to distribute the company's profits to its workers and employees.
 The bonus commission in its report suggested "It is difficult to define in rigid terms the
concept of bonus, but it is possible to urge that once the profits exceed a certain base,
labour should legitimately have a share in them. In other words, we think it to
construe the concept of bonus as sharing by the workers in the prosperity of the
concern in which they are employed.
 This has also the advantage that in the case of low paid workers sharing in prosperity
augments their earnings to bridge the gap between the actual wage and the need-
based wage. If it is not feasible to better the standard of living of all the industrial and
agricultural workers as aimed at in Article 43 of the Constitution it is nothing wrong in
endeavoring to do so in respect of those workers whose efforts have contributed to
the profits of the concern in which they have worked.
Objective behind the Act
 To impose statutory obligation on the employer of every establishment defined in the
Act to pay bonus to all eligible employees working in the establishments.
 To outline the principles of payment of bonus according to prescribed formula.
 To provide for payment of minimum and maximum bonus and linking in the payment
of bonus with the scheme of "set off" and "set on".
 To provide machinery for enforcement of bonus.
Case Laws: Jalan Trading v Mill Mazdoor Sabha:
the Supreme Court observed that the purpose of the Bonus Act was to maintain peace and
harmony between labour and capital by allowing workers to share the prosperity of the
establishment and prescribing the maximum and minimum rates of bonus, as well as the
scheme of "set-off" and set - on to not only secure the labour's right in the share of profits
but also to ensure a reasonable degree of uniformity.
Eligibility For Bonus Under The Act(Section 8)
 The payment of bonus is a statutory right under the act and According to the Section 8
of the act, any employer who has worked for a minimum of 30 days in an accounting
year, shall be eligible for a bonus.
Case Laws:
  East Asiatic Co. Ltd. Vs Industrial Tribunal :it was held that a retrenched employee is
eligible for bonus if they worked for a min of 30 days and have a salary of 10,000 pm
in a year.
  J. K. Ginning & Pressing Factory v. Second Labour Court, Akola & Others: a factory
employed ten seasonal employees, and the issue of their bonus eligibility arose. The
Bombay High Court ruled that the Act does not exclude such seasonal workers from
employment; the only criterion for eligibility is that they meet the Section
Disqualification From Bonus Under The Act(Section 9)
According to the sec 9 of the act an employee shall be disqualified from receiving bonus
under the Payment of Bonus Act, 1965, if he is dismissed from service for:
 Fraud, or
 Riotous or violent behavior while on the premises of the establishment, or
 Theft, misappropriation or sabotage of any property of the establishment
This provision is based on the recommendation of Bonus Commission, which stated that:
After all, bonus can only be shared by those workers who promote the stability and well-
being of the industry, not by those who positively exhibit disruptive tendencies. Bonuses,
without a doubt, impose a duty of good behaviour.
Case Laws:
 Pandian Roadways Corporation Ltd. vs. Presiding Officer: The appellant, a bus
conductor working for a government of Tamil Nadu undertaking, was dismissed from
service. Following that, the petitioner and management reached an agreement, and
the petitioner as appointed as a new entrant. Following that, the petitioner claimed
an bonus of rs 1,842 for the duration after his re-appointment. the court ruled in the
case that " If an employee is dismissed from service, he is disqualified from receiving
any bonus under the said Act, not just the bonus for the accounting year," the court
ruled.
 Gammon India Ltd Vs Niranjan Das:  the court held that an employee who is dismissed
from service for fraud, riotous or aggressive behaviour on the premises of the
company, or who is guilty of theft, misappropriation, or sabotage of any
establishment's property is disqualified from receiving bonus for the accounting year
under section 9 of the Payment of Bonus Act, 1965. A dismissed employee who has
been reinstated with back pay has evidently not committed the above crimes and has
not been fired. As a result, he is entitled to a bonus.
Conclusion: The Payment of Bonus Act, 1965 seeks to legally regularise the practice of paying
bonus by different establishment. It offers an objective way to calculate the bonus based on
profit and productivity. It enables the employees to earn over and above their minimum
wages or salary. 

Q3: Payment Of Minimum Bonus/Maximum Bonus

Answer
Payment Of Minimum Bonus(Section 10)
  Section 10 of the Act states that, regardless of whether the employer has
some allocable surplus in the accounting year.
 Each employer must pay each employee a minimum bonus equivalent to
8.33 percent of the employee's salary or wage earned during the accounting
year, or one hundred rupees, whichever is greater.
 However, if an employee is under the age of fifteen at the start of the
accounting year, the terms of this Section refer to that employee as if the
words "one hundred rupees" were replaced with "sixty rupees."
 Section 10 of the Act does not contradict Articles 19 and 301 of the
Constitution. Even if the employer loses money during the fiscal year, he
must pay the minimum bonus as according to section 10 of the act.
Case Laws:
 In Jalan Trading Co. v. Mill Mazdoor Sabha (AIR 1967 SC 691), the Supreme Court
observed that the power of Parliament to fix minimum bonus cannot be questioned,
because the object of the Act is to make an equitable distribution of surplus profits
between the three factors of production. It flows from jurisdiction over industrial and
labour disputes, welfare of labour. The legislation is therefore neither a fraud on the
Constitution nor is colourable exercise of power.
 In M/s. J.K. Acrylics v. Union of India (1997 (2) LLJ 608.), the Court held that where the
Payment of Bonus Amendment Act, 1995, replacing the Amendment Ordinance of
1993 was challenged on the ground that it cannot have retrospective operation, the
employer has no right to say that his liability to pay bonus cannot be retrospectively
enlarged.
 In J.K. Chemicals v. Govt, of Maharashtra (1997 (3) Supp. LLJ 578 the court held that
the company would not be relieved from its liability to pay minimum bonus, if the
bonus liability is negligible in comparison to the loss incurred. If the employer's
damages were not caused by employee wrongdoing, the employer must pay the
statutory minimum bonus
 In Midhani Workers and Staff Union v. Mishradhatu Nigam Ltd., Hyderabad, it was
held that a writ of mandamus will be issued compelling performance of a statutory
duty. Section 10 of the Act, imposes a statutory duty in respondent industry to pay
minimum bonus to its workmen irrespective of the allocable surplus.

Payment Of Maximum Bonus

 Where in respect of any accounting year referred to in section 10, the allocable
surplus exceeds the amount of minimum bonus payable to the employees
under that section, the employer shall, in lieu of such minimum bonus, be
bound to pay to every employee in respect of that accounting year bonus
which shall be an amount in proportion to the salary or wage earned by the
employee during the accounting year subject to a maximum of twenty per
cent. Of such salary or wage.
  In computing the allocable surplus under this section, the amount set on or the
amount set off under the provisions of section 15 shall be taken into account in
accordance with the provisions of that section.
Calculation of bonus with respect to certain employees (Section 12)
 Where the salary or wage of an employee exceeds Rs.7,000/- per mensem, the bonus
payable to such employee under Sec.10, or as the case may be, under Sec.11, shall be
calculated as if his salary or wage were Rs.7,000/- per mensem.
 The Government has decided to enhance the eligibility limit for payment of bonus
3500/- per month Disqualification for bonus.
 Under [Sec 9] an employee shall be disqualified from receiving bonus under this Act, if
he is dismissed from service for Fraud; or (b) Riotous or violent behaviour while on the
premises of the establishment; or Theft, misappropriation or sabotage of any property
of the establishment.
Proportionate reduction in bonus in certain cases: Section 13
 Reading of Section 13 of POB Act, alone will not help to solve your question. This
section has to be read with section 10 of the Act
 Where an employee has not worked for all the working days in an accounting year,
the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if
such bonus is higher than 8.33 per cent. of his salary or wage for the days he has
worked in that accounting year, shall be proportionately reduced
Conclusion:
The Payment of Bonus Act of 1965 aims to legalise the practise of various establishments
paying bonuses. It provides a mechanism for calculating bonus based on profit and
performance. It allows workers to make more money than the minimum wage or salary. This
Act establishes various procedures for different types of businesses, such as banks and
government agencies, as well as businesses that are not corporations or firms. This Act also
establishes a rigorous redress process in addition to the procedure

Q3: Recovery of bonus due from an employer :

Answer:
 Where any money is due to an employee by way of bonus from his employer under a
settlement or an award or agreement, the employee himself or any other person
authorised by him in writing in this behalf, or in the case of the death of the
employee, his assignee or heirs may, without prejudice to any other mode of
recovery, make an application to the appropriate Government for the recovery of the
money due to him, and if the appropriate Government or such authority as the
appropriate Government may specify in this behalf 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:
o Provided that every such application shall be made within one year from the
date on which the money became due to the employee from the employer:
o Provided further that any such application may be entertained after the
expiry of the said period of one year, if the appropriate Government is
 satisfied that the applicant had sufficient cause for not making the
application within the said period.
Explanation .-In this section and in [sections 22, 23, 24 and 25], "employee" includes a person
who is entitled to the payment of bonus under this Act but who is no longer in employment.

#Computation of available surplus(Section 5)

Answer
Computation of available surplus(Section 5)
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-
a. the gross profits for that accounting year after deducting therefrom the sums referred
to in section 6; and
b. an amount equal to the difference between-
(i) the direct tax, calculated in accordance with the provisions of
section 7, in respect of an amount equal to the gross profits of the
employer for the immediately preceding accounting year; and
(ii) (ii) the direct tax, calculated in accordance with the provisions of
section 7, 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.]
Sums deductible from gross profits(Section6):
The following sums shall be deducted from the gross profits as prior charges, namely:-
a. any amount by way of depreciation admissible in accordance with the provisions of
sub-section (1) of section 32 of the Income-tax Act, or in accordance with the
provisions of the agricultural income-tax law, as the case may be:
Provided that where an employer has been paying bonus to his employees under a
settlement or an award or agreement made before the 29th May, 1965, and
subsisting on that date after deducting from the gross profits notional normal
depreciation, then, the amount of depreciation to be deducted under this clause shall,
at the option of such employer (such option to be exercised once and within one year
from that date) continue to be such notional normal depreciation;
b. 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;
c. subject to the provisions of section 7, 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;
(d) Such further sums as are specified in respect of the employer in the [Third Schedule].

#Customary bonus: Customary bonus is bonus which is being paid by way of tradition or
custom at a uniform rate over a number of years and which has no link with profit.
Section 17: Adjustment of customary or interim bonus against bonus payable under the Act
Where in any accounting year—
a) An employer has paid any Puja bonus or other customary bonus to an employee; or
b) 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
#Productivity Bonus
The payment of the bonus is linked with the productivity and production of the given
employee. Such an arrangement will take place when there is any settlement or agreement
between the employer and the employee in this regard.
Special provision with respect to payment of bonus linked with production or productivity
Section 31-A: Notwithstanding anything contained in this Act,-
I. where an agreement or a settlement has been entered into by the employees with
their employer before the commencement of the Payment of Bonus (Amendment)
Act, 1976 (23 of 1976), or
II. where the employees enter into any agreement or settlement with their employer
after such commencement, for payment of an annual bonus linked with production or
productivity in lieu of 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 the minimum bonus under section 10 shall be null and void
insofar 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 twenty per cent. of the salary or wage earned by them during the relevant
accounting year.

# Time limit for the payment of bonus(Section 19)

All amounts payable to an employee by way of bonus under this Act shall be paid in cash
by his employer-
a) where there is a dispute regarding payment of bonus pending before any authority
under section 22, within a month from the date on which the award becomes
enforceable or the settlement comes into operation, in respect of such dispute;
b) in any other case, within a period of eight 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 reasons, by order, extend the said period of eight 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 two years.
Case Laws: UCO Bank Employees' Association, Madras v. Union of India and others, 2003 L.L.J.
No distinction is drawn between the bonus to be paid either before the order or after
thereof.

#The Payment of Gratuity Act, 1972

Introduction:
 Before codification of the Payment of Gratuity Act, 1972 there was no Central Act
to regulate the payment of gratuity to industrial workers, except the Working
Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955.
 The Government of Kerala enacted legislation for payment of gratuity to workers
employed in factories, plantations, shops and establishments in 1971 and an
ordinance was promulgated by the Governor of West Bengal on 3rd June 1971.
 Prescribing a similar scheme which was later replaced by the West Bengal
Employee's Payment of Compulsory Gratuity Act, 1971.
Meaning of Gratuity
 Gratuity is the amount paid by an employer to the employee for the services
rendered by him/her during the period of employment. Gratuity can only be given
when the employee completes a minimum of five years of service with an
organization. However, these five years must be continuous and there should be no
gap in the services of the employee with that company.
 Generally, employers pay gratuity at the time of retirement, but can also be paid
during the period of employment. Gratuity is calculated based on the last drawn
salary and years of service.
Salient features of the Payment of Gratuity Act, 1972
 The Act is a self-contained and an exhaustive Act and the provisions of this Act and
rules made under it have an overriding effect on all other Acts or instruments or
contracts so far as they are inconsistent with this Act.
 The Act is fairly sweeping in coverage, as it applies to all factories, mines, oil fields,
plantations, ports and railways irrespective of the number of workmen employed by
them. It also covers shops and establishments employing 10 or more persons.
 The Act gives a statutory right of gratuity to all the employees, who have rendered
five years’ continuous service and whose services stand terminated after coming into
force of the Act on account of superannuation, or retirement, or resignation, or
death or disablement.
 The Act provides both executive and quasi-judicial machinery for matters
pertaining to nomination, determination and recovery of gratuity.
 The executive machinery pertains to maintenance of records regarding opening,
change or closure of establishments, display of notices and maintenance of records
by the controlling authority.
 The quasi-judicial functions have been divided between the employers and the
Controlling Authority in as much as for payment of gratuity, the first forum
provided is an application to the employer. When the employer has declined or
avoided payment of gratuity, then an application is required to be made to the
Controlling Authority.
  The machinery provided for recovery rests with the Controlling Authority.
 The orders of the Controlling Authority for payment or determination of gratuity
are applicable before the appropriate government or the appellate authority
Objectives
 Provide a scheme for the payment of gratuity to employees.
 To provide for matters connected with or incidental to the scheme for payment of
gratuity.
 To provide retiring benefits to employees who have rendered continuous services to
his employers and thereby contributed to his prosperity.
 Define the principles of payment of gratuity according to the prescribed formula.
 Provide machinery for the employment of liability for payment of gratuity.
 The object of the act is to help the workman financially by giving gratuity after
retirement for the recognition of continuous, meritorious services and sincere efforts
by the employee towards the organization.
 The objective of providing gratuity i.e., a monetary award given for services
rendered to the employees working in the factories, oilfields, mines, plantations,
railway companies, shops or other establishments upon their superannuation
(e.g.,old age retirement amount,etc.), retirement, resignation, death or disablement. 
Scope of the enactment
 An Act to provide for a scheme for the payment of gratuity to employees engaged in
factories, mines, oilfields, plantations, ports, railway companies, shops or other
establishments and for matters connected therewith or incidental thereto
 The section further describes the scope of enactment as follows:
It shall apply to
a) every factory, mine, oilfield, plantation, port and railway company;
b) every shop or establishment within the meaning of any law for the time being
in force in relation to shops and establishments in a State, in which ten or more
persons are employed, or were employed, on any day of the preceding twelve
months;
c) such other establishments or class of establishments, in which ten or more
employees are employed, or were employed, on any day of the preceding
twelve months, as the Central Government may, by notification, specify in this
behalf
Case law:
 In Municipal corporation of Delhi V Smt. V.T. Naresh and anothers: it was held that
local authorities are establishment under this Act. 
 Laxmi D. v A.P. Agriculture university and anothers: universities are also considered in
the preview of this enactment. In many other cases time to time judiciary interpreted
the applicability of the enactment in wider prospective
Conclusion
Employees are the back bone of an business organisation. No business can flow or progress
without the heartly cooperation of employees and hard work of their employees. Thus it is
the moral duty of every organisation to recognise their valuable contribution and to take care
of them specially at the time of their retirement and their severance with the organisation
and the failure to the same will results in hardship and exploitation of poor employees on the
hands of capitalistic powers.

Q2. Eligibility for Gratuity

Answer
Section 4(1) of the Payment of Gratuity Act, 1972 provides that gratuity shall be payable to
an employee on the termination of his employment after he has rendered continuous
service for not less than five years:
 On his superannuation, or
 On his retirement, or
 On his resignation, or
 On his death, or
 On his disablement due to accident or disease.
But in the condition of death or disablement of the employee his employment becomes
terminated then continuous service of five years shall not be necessary.
In the case of death of the employee, gratuity payable to him shall be to his nominee it no
nomination has been made to his heirs and where such nominee or heir is minor the share
of such minor, shall be deposited paid with the Controlling Authority who shall invest the
same for the benefit of such minor in such Bank or financial institution as prescribed, until
such minor attains majority.
Disablement: Disablement means such disablement as incapacitates an employee for the
work which he was capable of performing before the accident or disease. Continuous
service is defined in Section 2-A of the Act.
Lalappa Lingappa v. Laxmi Vishnu Textile Mills, 1981: It was held by Apex Court that
Payment of Gratuity Act is a beneficial Legislation and that the word "continuous
services" has to be interpreted liberally.
Section 4(3): Provides that the maximum amount payable to employee as a gratuity shall
be three lakhs and fifty thousand rupees.
Section 4(5):  That nothing in this section shall affect the right of an employee to receive
better terms of gratuity under any award or agreement or contract with the employer.
Case Law: Y.K. Singla v. Punjab National Bank and others (2006): The position has been
reiterated holding that the employee has to make a choice between the two for drawing the
benefit of gratuity and the choice has a statutory protection under sub-Section (5) of
Section 4 of the Act.

Payment of Gratuity
o The employer shall arrange to pay the amount of gratuity within 30 days from the
date it becomes active i.e. from the day the person retires or his employment is
terminated, to the person to whom the gratuity is awarded.
o If the amount of gratuity payable under the section is not paid by the employer within
the period specified, he will have to pay simple interest on it from the date on which
the gratuity becomes payable at the rate in coherence with the guidelines laid down
by the by the Central Government.
 o Gratuity can be paid in cash, demand draft or bank cheque to the employee via his
preferred mode of payment.

Case Laws: Allahabad Bank and others v. All India Allahabad Bank Retired Employees
Association: where the honorable court held that pensionary benefits may include both
pension amount and gratuity amount but gratuity amount is a must to be paid to the
employees.

Q: Determination, Recovery and Protection

Answer:
Introduction:
 Before codification of the Payment of Gratuity Act, 1972 there was no Central Act
to regulate the payment of gratuity to industrial workers, except the Working
Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955.
 The Government of Kerala enacted legislation for payment of gratuity to workers
employed in factories, plantations, shops and establishments in 1971 and an
ordinance was promulgated by the Governor of West Bengal on 3rd June 1971.
 Prescribing a similar scheme which was later replaced by the West Bengal
Employee's Payment of Compulsory Gratuity Act, 1971.
Meaning of Gratuity
 Gratuity is the amount paid by an employer to the employee for the services
rendered by him/her during the period of employment. Gratuity can only be given
when the employee completes a minimum of five years of service with an
organization. However, these five years must be continuous and there should be no
gap in the services of the employee with that company.
 Generally, employers pay gratuity at the time of retirement, but can also be paid
during the period of employment. Gratuity is calculated based on the last drawn
salary and years of service.
DETERMINATION OF THE AMOUNT OF GRATUITY. [Sec 7]
1. A person who is eligible for payment of gratuity under this Act or any person
authorised, in writing, to act on his behalf shall send a written application to the
employer, within such time and in such form, as may be prescribed, for payment of
such gratuity.
2. As soon as gratuity becomes payable, the employer shall, whether an application
referred to in sub-section (1) has been made or not, determine the amount of gratuity
and give notice in writing to the person to whom the gratuity is payable and also to
the controlling authority specifying the amount of gratuity so determined.
3. The employer shall arrange to pay the amount of gratuity within thirty days from the
date it becomes payable to the person to whom the gratuity is payable.
3(A)If the amount of gratuity payable under sub-section (3) is not paid by the
employer within the period specified in sub-section (3), the employer shall pay,
from the date on which the gratuity becomes payable to the date on which it is
paid, simple interest at such rate, not exceeding the rate notified by the Central
Government from time to time for repayment of long-term deposits, as that
 Government may, by notification specify : Provided that no such interest shall be
payable if the delay in the payment is due to the fault of the employee and the
employer has obtained permission in writing from the controlling authority for the
delayed payment on this ground.
4.)
a) If there is any dispute as to the amount of gratuity payable to an employee
under this Act or as to the admissibility of any claim of, or in relation to, an
employee for payment of gratuity, or as to the person entitled to receive the
gratuity, the employer shall deposit with the controlling authority such
amount as he admits to be payable by him as gratuity.
b) Where there is a dispute with regard to any matter or matters specified in
clause (a), the employer or employee or any other person raising the dispute
may make an application to the controlling authority for deciding the
dispute.
c) The controlling authority shall, after due inquiry and after giving the parties
to the dispute a reasonable opportunity of being heard, determine the
matter or matters in dispute and if, as a result of such inquiry any amount is
found to be payable to the employee, the controlling authority shall direct
the employer to pay such amount or, as the case may be, such amount as
reduced by the amount already deposited by the employer.
d) The controlling authority shall pay the amount deposited, including the
excess amount, if any, deposited by the employer, to the person entitled
thereto.
e) As soon as may be after a deposit is made under clause (a), the controlling
authority shall pay the amount of the deposit –
I. to the applicant where he is the employee; or
II. where the applicant is not the employee, to the nominee or, as
the case may be, the guardian of such nominee or heir of the
employee if the controlling authority is satisfied that there is no
dispute as to the right of the applicant to receive the amount of
gratuity.
5.) For the purpose of conducting an inquiry under sub-section (4), the controlling authority
shall have the same powers as are vested in a court, while trying a suit, under the Code of
Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely :-
a) Enforcing the attendance of any person or examining him on oath;
b) Requiring the discovery and production of documents;
c) Receiving evidence on affidavits;
d) Issuing commissions for the examination of witnesses.
6.) Any inquiry under this section shall be a judicial proceeding within the meaning of sections
193 and 228, and for the purpose of section 196, of the Indian Penal Code, 1860 (45 of 1860).
7.) Any person aggrieved by an order under sub-section (4) may, within sixty days from the
date of the receipt of the order, prefer an appeal to the appropriate Government or such
other authority as may be specified by the appropriate Government in this behalf : Provided
that the appropriate Government or the appellate authority, as the case may be, may, if it is
satisfied that the appellant was prevented by sufficient cause from preferring the appeal
within the said period of sixty days, extend the said period by a further period of sixty days.

 Provided further that no appeal by an employer shall be admitted unless at the time
of preferring the appeal, the appellant either produces a certificate of the controlling
authority to the effect that the appellant has deposited with him an amount equal to
the amount of gratuity required to be deposited under sub-section (4), or deposits
with the appellate authority such amount.
(8) The appropriate Government or the appellate authority, as the case may be, may, after
giving the parties to the appeal a reasonable opportunity of being heard, confirm, modify or
reverse the decision of the controlling authority
Recovery Of Gratuity: Section 8
If the amount of gratuity payable under this Act is not paid by the employer, within the
prescribed time, the controlling authority shall, on an application made to it in this behalf by
the aggrieved person, issue a certificate for that amount to the Collector, who shall recover
the same, together with compound interest thereon as arrears of land revenue and pay the
same to the person entitled. However, these provisions are under two conditions:
1. The controlling authority should give the employer a reasonable opportunity to show
the cause of such an Act.
2. The amount of interest to be paid should not exceed the amount of gratuity under this
Act.
Section 13 in The Payment of Gratuity Act, 1972:  Protection of gratuity
No gratuity payable under this Act [and no gratuity payable to an employee employed in any
establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted
under section 5] shall be liable to attachment in execution of any decree or order of any civil,
revenue or criminal court.
Conclusion
The Payment of Gratuity Act, 1927, is a welfare statute provided for the welfare of the
employees who are the backbone of any organisation, company or startups. The gratuity
amount encourages the employee to work efficiently and improve productivity. Recently, by
the Payment of Gratuity (Amendment) Act, 2018, the central government has tried to
promote social welfare by providing leverage to the female employees who are on maternity
leave from ‘twelve weeks’ to ‘twenty six weeks’. 

Q#EQUAL REMUNERATION ACT, 1976- Objective, Features

Introduction- The Doctrine of 'equal pay for equal work' is not a fundamental right but a
Constitutional right. • Equal remuneration for men and women is the right of an employee
without any qualification. • The Act of Equal Remuneration, 1976 was enacted to comply with
the provisions of Directive Principle of State Policy (DPDP) under Article 39.
Objectives of the act- The equal remuneration act,1976 aims :
1. To pay equal remuneration to men and women workers.
2. To prevent discrimination, on the grounds of sex, against women in the matter of
employment.
3. To provide increasing opportunity to women.
4.To set-up advisory committees to promote employment opportunities for women.
Meaning of equality of work: The equality of work is not based solely on the designation or
the nature of work but also on factors like qualifications, responsibilities, reliabilities,
experience, confidentiality, functional need and requirements commensurate with the
position in the hierarchy are equally relevant.
Salient Features/Various provisions of the Act-
1. The Act is a Central Legislation and applies to the whole of India.
2. Restricts the employer to create terms and conditions in a contract of service or work
of labor contrary to equal pay for equal work doctrine and the provisions of Equal
Remuneration Act.
3. The Act applies to all workers even if engaged only for a day or few days.
4. The Ministry of Labor and The Central Advisory Committee are responsible for
enforcing this Act.
5. Every employer covered under this act shall pay the employees remuneration in
cash/kind at a rate which shall not be less favourable to the other gender if the work
is the same or of similar nature.
6. When the employer doesn’t comply with the provisions of the act, he will be liable to
pay fine, imprisonment, or both.
7. Same work or work of similar nature would mean if the work is performed under
similar conditions either by a man or woman it would require the same skill, effort and
responsibility.
8. While employees are recruited for work which is the same or of similar nature no
discrimination shall be directed towards women unless any law prohibits the same.
This provision is also extended to activities after recruitment i.e promotion, training or
transfer. The reservations made towards Scheduled Castes or Scheduled Tribes, ex-
servicemen, retrenched employees or any other class or category of persons will not
be affected by this provision.
9. Any settlement or any agreement with the employee that is harmful to the employee
isn't allowed.
10. An advisory committee shall be formed which shall consist of 10 members half of
which shall be women and the committee shall focus on providing its advice for
increasing the employment opportunities for women, hours of work, nature of work
and such other matters.
11. Every employer is required to maintain registers and other documents in relation to
the workers employed by him.
12. The appropriate government shall appoint inspectors for the purpose of investigation
of compliance with the provisions of this act.
13. The Inspector shall have the power: •To enter any building/premises/factory/vessel
•Require the production of documents •Take evidence from any person to confirm
compliance of the act. •Examine the employer/agent/servant
 14. Act not to apply in certain special cases. -- • Nothing in this Act shall apply— (A) to any
special treatment accorded to women in connection with— (i) the birth or expected
birth of a child, or (ii) the terms and conditions relating to retirement, marriage or
death or to any provision made in connection with the retirement, marriage or death.
Implementation of Act- The implementation of the Equal Remuneration Act, 1976 is done at
two levels. 1. The central sphere 2. The state sphere
1. Central Sphere:
 The Act is being implemented by the Central Government in relation to any
employment carried under the authority of the Central Government established by or
under a Central Act.
 In the Central sphere, the enforcement of Equal Remuneration Act, 1976 is entrusted
to the Chief Labour Commissioner.
 The Central Government appointes Labour Enforcement Officers as Inspectors for the
purpose to check as to whether the provisions of the Equal Remuneration Act, 1976
are being complied with by the employers or not.
2. State Sphere:
 In respect of all employments other than those where the Central Government is
appropriate the implementation rests with the State Governments.
 In the case of employments where the State Government are appropriate authorities,
the enforcement of the provisions of the E.R.Act, 1976 is done by the officials of the
State Labour Department.
 The Central Government monitors the implementation of the provisions of the Equal
Remuneration Act, 1976 by the State Governments.
Case Laws-
 In the case of People’s Union for Democratic Rights v. Union of India, the Supreme
Court observed that the principle of equality embodied in Article 14 of the
Constitution of India, finds its expression in the provision of the ERA Act.
 In the case of Budhan Choudhary v. the State of Bihar, the Supreme Court held that
the concept of equality does not require that the law treat all individuals the same,
but rather classification made between individuals must be reasonable.
 In the case of Mackinnon Mackenzee and Co. ltd. v. Andrey D’Costa, which involved a
claim for equal remuneration for female Stenographers and male stenographers. The
Supreme Court held that such kind of differentiation is not maintainable, further, the
management could not arrive at a settlement, by flouting the express provision of the
statute.
 In the landmark case of State of Punjab and Ors. v. Jagjit Singh and others, the
Supreme Court observed that the temporary employees performing similar duties and
functions as discharged by permanent employees are to be given wages at par with
permanent employees similarly placed. It also stated that this principle must be
applied in the cases where the same work is being performed, irrespective of the class
of the employee.
Conclusion/To Achieve Equality, ERA was enacted-
  The Equal Remuneration Act, 1976 provides for payment of equal remuneration to
men and women and help prevent gender discrimination.
 Article 39 of the Indian Constitution envisages that the States will have a policy for
securing equal pay for equal work for both men and women. To give effect to this
constitutional provision, the Equal Remuneration Act, 1976 was introduced.
 An Act to provide for the payment of equal remuneration to men and women workers
and for the prevention of discrimination, on the ground of sex, against women in the
matter of employment and for matters connected therewith or incidental thereto.
 The purpose of the act is to make sure that employers do not discriminate on the basis
of gender, in matters of wage fixing, transfers, training and promotion.
 It provides for payment of equal remuneration to men and women workers, for same
work or work of similar nature and for the prevention of discrimination against
women in the matters of employment.

Q#Penalties & Cognisance of Offence under ERA, 1976

Introduction-Equal Remuneration Act, 1976, means the law that prohibits discrimination by
employers between women and men in terms of wages and other terms of employment.If an
employer is found guilty of discriminating between men and women, they will face legal
action in different ways depending on their situation. They can face action from the Equal
Remuneration Commission or the Equal Remuneration Board.
Objectives of the act- The equal remuneration act,1976 aims :
1. To pay equal remuneration to men and women workers.
2. To prevent discrimination, on the grounds of sex, against women in the matter of
employment.
3. To provide increasing opportunity to women.
4.To set-up advisory committees to promote employment opportunities for women.
Duties of Employer under this Act-
1. Section 4: The duty of the employer to pay equal remuneration to both men and
women workers for same work or work of similar nature.
2. Section 5: No discrimination to be made while recruiting men and women workers
3. Section 8: Maintaining a Registrar
•••If an employer fails to perform his duties provided under this act, he is faced with the
Penalties provided under Section 10 of ERA and Cognisance under Section 12 of ERA.
Penalties (Section 10)-
(1) If after the commencement of this Act, any employer, being required by or under the Act,
so to do-
a) omits or fails to maintain any register or other document in relation to workers
employed by him, or
b) omits or fails to produce any register, muster-roll or other document relating to the
employment of workers, or
c) omits or refuses to give any evidence or prevents his agent, servant, or any other
person in charge of the establishment, or any worker, from giving evidence, or
d) omits or refuses to give any information,
 he shall be punishable with simple imprisonment for a term which may extend to 1 month
or with fine which may extend to ₹10,000 or with both.
(2) If, after the commencement of this Act, any employer—
a) makes any recruitment in contravention of the provisions of this Act, or
b) makes any payment of remuneration at unequal rates to men and women workers,
for the same work or work of a similar nature, or
c) makes any discrimination between men and women workers in contravention of the
provisions of this Act, or
d) omits or fails to carry out any direction made by the appropriate Government under
sub-section (5) of section 6,
he shall be punishable with fine which shall not be less than ₹10,000 but which may
extend to ₹20,000 or with imprisonment for a term which shall be not less than 3 months
but which may extend to 1 year or with both for the first offence, and with imprisonment
which may extend to 2 years for the second and subsequent offences.
(3) If any person being required so to do, omits or refuses to produce to an Inspector any
register or other document or to give any information, he shall be punishable with fine which
may extend to ₹500.
Offences of Companies (Section 11)-
 Section 11(1) of the Act specifies that if the offence is committed by any body
corporate and includes a firm or other association of individuals, shall be deemed to
be guilty of the offence. Unless, the person proves that the offence was committed
without his knowledge or that he had exercised all due diligence to prevent the
commission of such offence.
 Section 11(2) specifies that where any offence under this Act has been committed by a
company and It is proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of any director, manager,
secretary or other officer of the company, such director, manager, secretary or, other
officer shall be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.Explanation.—For the purposes of this section,—
(a) “company” means any body corporate and includes a firm or other association
of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
Cognisance and trial of offences (Section 12)-
(1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first
class shall try any offence punishable under this Act.
(2) No court shall take cognisance of an offence punishable under this Act except upon—
(a) its own knowledge or upon a complaint made by the appropriate Government or an
officer authorised by it in this behalf, or
(b) a complaint made by the person aggrieved by the offence or by any recognised
welfare institution or organisation.
 Explanation.—For the purposes of this sub-section “recognised welfare institution or
organisation” means a social welfare institution or organisation recognised in this
behalf by the Central or State Government.
  The courts involved in these matters must take immediate actions in order to protect
the employees from such discrimination.
Claims and Complaints
1) The Central Government shall appoint officers above the rank of a Labour officer for
hearing and deciding complaints regarding contravention of any provision and non-
payment of wages at an equal rate. The officer’s powers shall also include solving the
ambiguity whether two works are of the same nature or of similar nature.
2) The complaint shall be made in a prescribed manner and the officer shall have the
powers of a Civil Court.
3) The authority appointed shall give the employer an opportunity of being heard and
may pass orders as below:
 In case of contravention of any provision- Adequate steps to be taken by the
employer to ensure there is no contravention
 In case of non-payment of wages at an equal rate- Direct the employer to pay
the difference between wages payable and wages paid.
 The employer/worker can file an appeal to such authority as may be prescribed
by the appropriate government within 30 days from the date of the order and
such authority shall either confirm/ modify/ reverse the order appealed.
 The order passed thereof shall be the final one and cannot be further subject
to any appeal.
Conclusion-The appropriate government shall appoint inspectors for the purpose of
investigation of compliance with the provisions of this act. When the employer doesn’t
comply with the provisions of the act, he will be liable to pay fine, imprisonment, or both.

Q#Payment of equal Remuneration to men & women workers for same/similar

work under ERA
Introduction-
 The basic concept underlying, the very controversial subject, Feminism, is “equity”.
Equity refers to a treatment of equal with equals and Unequal with unequals.
 The Equal Remuneration Act, 1976 does just that. It provides for Equal remuneration
both men and women, but also understanding the fact that it will not override any
special treatment provided to women in the country.
 There was a time in India when women used to face heavy discrimination in pay. But,
after the advent of this Act, women have been able to sue malpractices prevailing in
their workplace.
 Chapter 2 of the Act, provides for payment of remuneration at Equal Rates to Men
and Women workers and other matters.
Definitions-
(a) Section 2(g) defines “remuneration” means the basic wage or salary, and any
additional emoluments whatsoever payable, either in cash or in kind, to a person
employed in respect of employment or work done in such employment, if the terms of
the contract of employment, express or implied, were fulfilled.
 (b) Section 2(h) defines “same work or work of a similar nature” means work in respect of
which the skill, effort and responsibility required are the same, when performed
under similar working conditions, by a man or a woman and the differences, if any,
between the skill, effort and responsibility required of a man and those required of
woman are not of practical importance in relation to the terms and conditions of
employment.
Duty of employer to pay equal remuneration to men and women workers for same work or
work of a similar nature :
 Section 4 of the Act provides that no employer shall pay to any worker, employed by
him in an establishment or employment, remuneration, whether payable in cash or in
kind, at rates less favourable than those at which remuneration is paid by him to the
workers of the opposite sex in such establishment or employment for performing the
same work or work of a similar nature and employer shall not reduce the rate of
remuneration of any worker.
 In the case of People’s Union of Democratic Republic v. Union of India 1982, women
were only paid 7 per day as opposed to 9.25 per day for male workers. After hearing
both sides, Justice P.N. Bhagwati held that the authorities need to make sure that the
men and women both are paid at par to each other for similar amount of work.
Discrimination not to be made while recruiting men and women :
 As per section 5 employer while making recruitment for the same work or work of a
similar nature, or in any condition of service subsequent to recruitment such as
promotions, training or transfer, shall not make any discrimination against women
except where the employment of women in such work is prohibited or restricted by or
under any law for the time being in force .
 However, above mentioned section shall not affect any priority or reservation for
Scheduled Castes or Scheduled Tribes, ex-servicemen, retrenched employees or any
other class or category of persons in the matter of recruitment to the posts in an
establishment or employment
Advisory Committee (Section 6)-
 Section 6(1) of the Act states that an Advisory committee must be created which will
aid the purposes increasing employment opportunities. The government is taking all
possible steps in making a change in the remuneration policies of the employers in
India.
 The advisory committee must consist of at least 10 people, which will be nominated
by the appropriate government. Women must consist of one-half of this committee
because that will help in formulation of policies with the help of people who are the
real stakeholders.
 Section 6(3) states, the factors which make a difference in the decision are:
i. Number of women at work
ii. Nature of work
iii. Hours of work
iv. Suitability of women
v. Need to provide opportunities
  After consideration of all these factors, the committee must decide in bringing the
appropriate norms in effect.
Power of appropriate Government to appoint authorities for hearing and deciding claims and
complaints-
 Section 7 of the Act states, the complaints and claims regarding the infringement of
this Act shall be addressed to the appointed officer. The applicants have to make sure
that they have accurate proof of the commitment of the offence. The offenders will
certainly be sued for any inequality in payment. In cases where the discrimination is
made in two or more works, the consequences will be decided by the appointed
officer.
 Section 7(4) of the Act, suggests that due inquiry must be made by the appointed
officer, wherein both the parties in the matter, must be given an opportunity to be
heard. The appointed officer shall have all the powers of a Civil Court, as mentioned
under Section 195, Code of Civil Procedure 1908 and Chapter XXVI of the Code of
Criminal Procedure.
 Claims arising out of non-payment of wages at equal rates to men and women
workers for the same work or work of a similar nature; and define the local limits
within which each such authority shall exercise its jurisdiction.
 Section 7(6) mentions the situation where any of the parties is dissatisfied with the
decision given by the authority. The aggrieved party must prefer an appeal before
such an authority which is specified by the appropriate government, within thirty days
from the date of the order.
Miscellaneous—Other powers & duties provided under Ch3 of Act:
Maintenance of Registers-As per section 8 it is the duty of every employer, to maintain
registers and other documents in relation to the workers employed by him in the prescribed
manner.
Inspector- Inspectors have the following powers while investigation, as provided in Section 8
of the Act:
i. Enter the premises at reasonable hours.
ii. May call for any official or official documents for examination.
iii. May call for evidence at any given point.
iv. Examine the employer.
v. Make copies of required documents.
These powers help the Inspectors to carry out the work in a fair and just manner.
Penalty- If any employer:-
i. makes any recruitment in contravention of the provisions of this Act; or
ii. makes any payment of remuneration at unequal rates to men and women workers
for the same work or work of a similar nature; or
iii. makes any discrimination between men and women workers in contravention of the
provisions of this Act; or
iv. omits or fails to carry out any direction made by the appropriate Government,
Then he/she shall be punishable with fine or with imprisonment or with both.
Conclusion-The Equal Remuneration Act, 1976, helps in bridging the gap between unequal
remuneration faced by the women of our country. By the successful implementation of the
Act, India is moving closer to being a country, which treats its men and women equally.

Q#Other Sections of ERA, 1976

Section9: Inspectors- (1) The appropriate Government may, by notification, appoint such
persons as it think fit to be Inspectors for the purpose of making an investigation as to
whether the provisions of this Act, or the rules made thereunder, are being complied with by
employers, and may define the local limits within which an Inspector may make such
investigation.

(2) Every Inspector shall be deemed to be a public servant within the meaning of Section 21
of the Indian Penal Code (45 of 1860).

(3) An Inspector may, at any place within the local limits of his jurisdiction, --

(a) enter, at any reasonable time with such assistance as he thinks fit, any building,
factory, premises or vessel:
(b) require any employer to produce any register, mister-roll or other documents relating
to the employment of workers, and examine such documents;
(c) take on the spot or otherwise, the evidence of any person for the purpose of
ascertaining whether the provisions of this Act are being, or have been, complied
with:
(d) 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 a worker in the
establishment;
(e) make copies, or take extracts from, any register or other document maintained in
relation to the establishment under this Act.
(4) Any person required by an Inspector to produce any register or other document or to give
any information shall comply with such requisition.

Section 13: Power to make rule- (1) The Central Government may, by notification, make rules
for carrying out the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules
may provide for all or any of the following matters, namely—

a) the manner in which complaint or claim referred to in sub-section (1) of Section 7 shall
be made;
b) registers and other documents which an employer is required under Section 8 to
maintain in relation to the workers employed by him;
c) any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be
after it is made, before each House of Parliament while it is in session, for a total period of
thirty days which may be comprised in one session or in two or more successive sessions, and
if, before the expiry of the session immediately following the session or the successive
sessions aforesaid, both Houses agree in making any modification in the ruleor both Houses
agree hat the rule should not be made, the rule shall thereafter have effect only in such
modified from or be of no effect, as the case may be; so however, that any such modification
or annulment shall be without prejudice to the validity of anything previously done under
that rule.

Section 14: Power of Central Government to give directions. -- The Central Government may
give directions to a State Government as to the carrying into execution of this Act in the
State.

Section 15: Act not to apply in certain special cases- Nothing in this Act shall apply—

(a) to cases affecting the terms and conditions of a woman’s employment in complying with
the requirements of any law giving special treatment to women, or

(b) to any special treatment accorded to women in connection with—

a. the birth or expected birth of a child, or

b. the terms and conditions relating to retirement, marriage or death or toany
provision made in connection with the retirement, marriage or death.
Section16: Power to make declaration- Where the appropriate Government is, on a
consideration of all the circumstances of he case, satisfied that the differences in regard to
the remuneration, or a particular species of remuneration, or men and women workers in any
establishment or employment is based on a factor other than sex, it may, by notification,
make a declaration to that effect, and any act of the employer attributable to such a
difference shall not be deemed to be contravention of any provision of this Act.

Section 17: Power to remove difficulties- If any difficulty arises in giving effect to the
provisions of this Act, the Central Government may, by notification, make any order, not
inconsistent with the provisions of this Act, which appears to it to be necessary for the
purpose of removing the difficulty,, Provided that every such order shall, as soon as may be
after it is made, be laid before each House of Parliament.