The Factories Act, 1948 provides for the health,

safety, welfare & other aspects of workers in

factories.

1.Short title, extent and commencement.

1)This Act may be called the Factories Act, 1948.

2)It extends to the whole of India.

3)It shall come into force on the 1 st day of April,

1948.
2. Interpretation
(k) “ Manufacturing process” means processes for –
i. making, altering, repairing, ornamenting, finishing,
packing, oiling, washing, cleaning, breaking up,
demolishing, or otherwise treating or adapting any
article or substance with a view to do its use, sale,
transport, delivery or disposal, or
ii. pumping oil, water, sewage, or any other substance, or,
iii. generating, transforming, or transmitting power, or
iv. composing types for printing, printing by letter press,
lithography, photogravure or similar process of
bookbinding, or
v. constructing, reconstructing, repairing, refitting,
finishing or breaking up ships or vessels, or
vi. preserving or storing any article in cold storage
(l) “ worker” means a person employed directly or
through any agency (including a contractor)
with or without the knowledge of the principal
employer, whether for remuneration or not, in
any manufacturing process or in cleaning any
part of the machinery or premises used for a
manufacturing process, or in any other kind of
work incidental to, or connected with, the
manufacturing process or the subject of the
manufacturing process but does not include
any member of the armed forces of the Union)
(m) “ factory” means any premises including the
precincts thereof –
(i) Whereon ten or more workers are working, or were
working any day of the preceding twelve months,
and any part of which a manufacturing process is
being carried on with the aid of power, or is
ordinarily so carried on, or
(ii) Where twenty or more workers are working, or
were working on any day of the preceding twelve
months, any in any part of which a manufacturing
process is being carried on without the aid of
power, or is ordinarily so carried on - but does not
include a mine subject to the operation of the Mines
Act, 1952, or a mobile unit belonging to the armed
forces of the union, a railway shed or a hotel,
restaurant or eating place
(n)“Occupier” of factory means the person who has
ultimate control over the affairs of the factory
provided that –
i. in the case of a firm or other association of
individuals any one of the individual partners or
members thereof shall be deemed to be the
occupier,
ii. in the case, of a company any one of the directors
shall be deemed to be the occupier,
iii. in the case of a factory owned or controlled by the
Central Government or State Government, or any
local authority, the person or persons appointed to
manage the affairs of the factory by the Central
Government, the State Government or the local
authority, as the case may be, shall be deemed to
be the occupier,
1. Cleanliness
2. Disposal of wastes and effluents
3. Ventilation and temperatures
4. Dust and fume
5. Artificial humidification
6. Overcrowding
7. Lighting
8. Drinking water
9. Latrines & urinals
10.Spittoons
1. Fencing of machinery
2. Work on near machinery in motion
3. Employment of young persons on dangerous
machines
4. Striking gear and devices for cutting off power
5. Self-acting machines
6. Casing of new machinery
7. Prohibition of employment of women & children
near cotton-openers
8. Hoists and lifts
9. Lifting machines, chain, ropes and lifting tackles
10. Revolving machinery
11. Pressure Plants
12. Floors, stairs and means of access
13. Pits, sumps openings in floors, etc,
14. Excessive weights
15. Protection of eyes
16. Precautions against dangerous fumes, gases, etc,
17. Precautions regarding the use of portable electric light
18. Explosive or inflammable dust, gas, etc,
19. Precautions in case of fire
20. Power to require specifications of defective parts or
test of stability
21. Safety of buildings and machinery
22. Maintenance of building
1. Washing facilities
2. Facilities for storing and drying clothing
3. Facilities of sitting
4. First-aid appliances
5. Canteens
6. Shelters, rest rooms & lunch rooms
7. Creches
8. Welfare officers,
1. Weekly hours not more than 48
2. Daily hours, not more than 9
3. Intervals for rest at last ½ how on working for 5
hours.
4. Spread over not more that 10 ½ hours
5. Overlapping shifts prohibited
6. Extra wages for overtime double the normal rates
7. Restrictions on employment of women before 6
AM and beyond 7 PM
8. Weekly holiday
9. Compensatory holiday
1. A worker having worked for 240 days @ one day
for every 20 day and for a child one day for
working of 15 days
2. Accumulation of leave for 30 days
3. Wages during leave period shall be daily average
of his total full time earnings for the day on which
he actually worked during the month immediately
preceding his leave exclusive of over time but
including dearness allowance payment in advance
in certain cases – for leave exceeding four days
 An Act to make provision for the investigation
and settlement of industrial disputes, and for
certain other purpose.
 
The Industrial disputes Act was brought on the
statute – book with the object top ensure social
justice to both the employers and employees
and advances the progress of industry by
bringing about the existence of harmony and
cordial relationships between the parties.
 The object
(i) is to improve the service conditions of industrial
labour
(ii)to provide for them the ordinary amenities of
life and by the process, to bring about industrial
peace.
(iii)This would and to accelerate productive
activity of the country resulting in its prosperity
 
Prosperity helps improvement of conditions of
labour
1. Short little, extent &
commencement

i. This Act may be called the Industrial

Dispute Act, 1947
ii. It extends to the whole of India
iii. It shall come into force on the first
day of April, 1947
2. Definitions

i. average pay” means the average of the wages

payable to a workman
ii. in the case of monthly paid workman, in the three
complete calendar months,
iii. in the case of weekly paid workman in the four
complete weeks
iv. in the case of daily paid workman, in the twelve full
working days

(b) “ award “ means an interim or final determination of

any industrial dispute or any question relating there to
by any labour court, Industrial Tribunal or National
Industrial Tribunal and includes an arbitration award
as a result of voluntary reference of disputes to
arbitration (S.10A)
(c)“Board” means a board of conciliation constituted
under this Act
(cc) “closure” means the permanent closing down of
a place of employment or part thereof
(d)“Conciliation officer” means a conciliation officer
appointed under this Act
(e)“Conciliation” means any proceeding held by a
conciliation officer or board under this Act
(ee) “Controlled industry” means any industry the
control of which by the Union has been declared
by any central Act to be expedient in the public
interest
(f) “Court” means a court of Inquiry constituted under
this Act
(g) “Employer” means
(i) in relation to any industry carried on by or under the
authority of any department of Central Government or a
State Government, the authority prescribed in this
behalf, or were no authority is prescribed, the head of
the department,
(ii) in any industry carried on by or on behalf of a local
authority, the chief executive officer of that authority
(gg) “executive” , in relation to a trade union, means the
body by whatever name called, to which the
management of the affairs of the trade union is
entrusted
(j) “industry” means any business, trade, undertaking,
manufacture or calling of employers and includes any
calling, service, employment, handicraft, or industrial
occupation or avocation of workman
To be substituted w.e.f. the date to be notified
(s)“ industry “ means any systematic activity carried
on by cooperation between employer and his
workman ( whether such workman are employed
by such employer directly or by or through an
agency, including a contractor) for the production,
supply or distribution of goods or service human
wants or wishes ( not being wants or wishes which
are merely spiritual or religious in nature) whether
or not-
(i) any capital has been invested for the purpose of
carrying on such activity, or
(ii) such activity is carried on with a motive to make
any gain on profit
(k)“Industrial dispute” means any dispute or difference
between employers and employers, or between
employers and workman, or between workman and
workman which is connected with the employment
or non- employment or the terms of employment or
with the conditions of labour, of any person
(kkk) “Lay off” (with its grammatical variations and
cognate expressions means the failure, refusal or in
ability or failure, of an employer or account of
shortage of coal, power or raw materials or
accumulation of stocks or the breakdown of
machinery (or natural calamity or for any other
connected reason) to give employment to a
workman whose name is borne on the muster rolls
of his industrial establishment and who has not been
retrenched,
 Explanation – Every workman whose
Name is borne on the muster rolls of the industrial
establishment and who presents himself for work at the
establishment at the time appointed for the purpose of
normal working hours on any day and is not given
employment by the employer within two hours of his so
presenting himself shall be deemed to have been laid off for
that day within the meaning of this clause provided that if the
workman instead of being given employment at the
commencement of any shift for any day is asked to present
himself for the purpose during the second half of the shift for
the day aide is given employment then, he shall be deemed
to have been laid off only for half of that day
Provided further that if he is not given any such employment
ever after so presenting himself, he shall not be deemed to
have been laid of for the second half of the shift for the day
and shall be entitled to full basic wages and dearness
allowance that part of the day
(l) “lock-out” means the temporary closing of a place of employment or
the suspension of work, or the refusal by an employer to continue to
employ any member of persons employed by him
(lll) “Office bearer” in relation to a trade union, includes any member of the
executive thereof, but does not include an auditor
(oo) Retrenchment” means the termination by the employer of the service
of a workman for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action, but does not
include
a) voluntary retirement of the workman, or
b) retirement of the workman on reaching the age superannuation if the
contract of employment between the employer and the workman
concerned contains a stipulation in that behalf, or
(bb) Termination of the service of the workman as a result of non-
renewal of the contract between the employer and the workman
concerned on its expiry or of such contract being terminated under a
stipulation in that behalf contained therein, or
(c ) Termination of the service of a workman on the ground of continued in-
health
(p)“Settlement” means a settlement arrived at in the
courses of conciliation proceeding and includes a
written agreement between the employer and
workman arrived at otherwise than in the course of
conciliation proceeding where such agreement has
been signed by the parties thereto in such manner
as may be prescribed and a copy thereof has been
sent to on officer authorized in this behalf by the
appropriate Government and the conciliation officer
(q)“Strike” means a cessation of work by a body of
persons employed in any industry acting in
combination or a concerted refusal, or a refusal
under a common understanding, of any number of
persons who have been employed to continue to
work or to accept employment
(rr) “wages” means all remuneration capable of
being expressed in terms of money, which would, if
the terms of employment, express or implied, were
fulfilled, be payable to a workman in respect of his
employment, or of work done in such employment,
and includes-
i. Such allowance (including dearness allowance as
the workman is for the time being entitled to;
ii. The value of any house accommodation, or supply
of light, water, medical attendance, or other
amenity or any service or any concessional supply
of food grains or other articles
iii. Any travelling concession ,
iv. Any commission payable on the promotion of sales
or business or both,
but does not include –
a) Any bonus
b) Any contribution paid on payable by the
employer to any person find or provident find or
for the benefit of the workman under any law
for the time being in force
c) Any gratuity payable on the termination of his
service
(s) “workman” means any person (including an apprentice) employed
in any industry to do any manual, unskilled, skilled, technical,
operational, clerical or supervisory work for hire or reward,
whether the terms of employment be expressed or implied, and for
the purpose & any proceeding under this Act in relation to any
industrial dispute, includes any person who has been dismissed,
discharged or retrenched in connection with, or as a consequence
of, that dispute, on whose dismissal, discharge or retrenchment
has led to that dispute, but does not include members of the Army,
Navy, Air Force, Police service, prison service
(ii) who is employed mainly in a management or administrative
capacity, or
(iii) who, being employed in a supervisory, capacity, draws wages
exceeding one thousand six hundred rupees per mensum or
exercises, either by the nature of the duties attached to the office
vested in him, functions mainly of a managerial nature
2-A Dismissal etc, of on individual workman to
be deemed to be an industrial dispute
Where in any employer discharge dismisses,
retrenches or otherwise terminates the services
of an individual workman, any dispute or
difference between the workman and his
employer connected with, or arising out of, such
discharge dismissal, retrenchment or termination
shall be deemed to be an individual dispute
notwithstanding that no other workman or any
union of workman is a party to the dispute
3. Work Committee. Joint Committee with equal number of
employer’s and employees’ representative for promoting
measures for securing and preserving amity and good
relations where 100 or were workman are employed
4. Conciliation officers. Shall be appointed on regular basis,
charged with the duty of mediating in and promoting the
settlement of industrial disputes
5. Board of Conciliation. Shall be appointed on as required
basis for fermenting the settlement of an industrial dispute
6. Courts of Inquiry. May be constituted for inquiring into
any matter appearing to be connected with or relevant to an
industrial dispute
7. Labour Courts. One or more labour courts in one State
may be set up for adjudication of industrial disputes
relating to any matter specified in the Second Schedule
7A. Tribunals – One on more Industrial Tribunal in
one State may be set up for the adjudication of
industrial disputes relating to the Second
Schedule or the Third Schedule
7B. National Tribunals- One or more National
Industrial Tribunals for the adjudication of
industrial dispute which, in the opinion of the
Central Government, involves questions of
national importance or are of such a nature that
industrial establishment situated in more than one
State are likely to be interested in, or affected by
such dispute.
9A. Notice of change – No employer, who
proposes to effect any change in the conditions of
service applicable to any workman in respect of
any matter specified in the Fourth Schedule, shall
effect such change –
a. Without giving to the workman likely to be affected
by such change a notice in the prescribed manner
of the nature of the change proposed to be
effected, or
b. Within twenty – one day of giving such notice
provided that no such notice shall be required in
pursuance any settlement as award 
10. Reference of disputes to boards, courts or Tribunal. Where any
Industrial dispute exists as is apprehended, the Government may refer the
dispute to a board, court f Inquiry, labour court or Tribunal for settlement .
10A.Voluntary reference of dispute to arbitration. Where any industrial
dispute exists as is apprehended & the employer and workman agree to
refer the dispute to arbitration may at any time before the dispute has
been referred under section 10, by a written agreement refer the dispute
to arbitration to an arbitrator (s)
12. Duties of conciliation officers –
(1) where an individual dispute exists or is apprehend the conciliation officer
may, where the dispute relates to a public utility service and notice of the
same has been given shall, hold condition proceedings in the prescribed
manner.
Duties of Conciliation Officers Contd.

2. The conciliation officer shall, for the purpose of

bringing about a settlement of the dispute, without
delay, investigate the dispute and all matters
affecting the merits and the right settlement thereof
and may do all such them as he thinks fit for the
purpose of inducting the parties to come to a fair
and amicable settlement for the dispute .
3. If a settlement of the dispute on any of the matters
in dispute is arrived at in the course of the
conciliation proceeding the conciliation officer shall
send a report thereof to the Government together
with a memorandum of the settlement signed by
the parties to the dispute
4. It no such settlement is arrived at, the conciliation officer
shall as soon as practicable after the close of the
investigation send to the Government a full report setting
forth the steps taken by him for ascertaining the facts and
circumstances relating to the dispute and for bringing about
a settlement thereof, together with a full statement of such
facts and circumstances, and the reason on account of
which, in his opinion, a settlement could not be arrived at
(usually referred to as “ Failure Report”)
5. If, on a consideration of the report the Govt. may refer the
case to a Board, Labour Court, Tribunal or National
Tribunal, if it is does not reasons thereof shall be recorded.
6. A report should be submitted by the conciliation officer
within fourteen day or extended time if agreed to by all
parties.
18. Persons on whom settlement and award are binding — (1) A
settlement arrived at by agreement between employer and workman
otherwise than in the course of conciliation preceding shall be binding
on the parties to the agreement
(2) Subject to the provision of sub-section (3) an arbitration award which
has become enforceable shall be binding on the parties to the
agreement who referred the dispute to arbitration
(3) A settlement arrived at in the course of conciliation proceedings under
this Act or an arbitration award or award of Labour Court, Tribunal or
National Tribunal shall be binding on-
(a) all parties to the industrial dispute
(b) all parties summoned to appear in the proceedings as parties to
the dispute.
(c) an employer, if he is a party, his heirs, successors, or assigns in
respect of the establishment to which the dispute related
(d) is case of workman referred to in (a) & (b) above, all persons who
were employed in the establishment or part of the establishment, as the
case may be to which the dispute relates on the date of dispute all
persons who subsequently become employees in that establishment or
part.
22 Prohibition of strikes and lockout-
(1)No person employed in a public utility service shall
go on strike in breach of contract-
(a)without giving to the employer notice of strike
within six weeks before striking; or
(b)within fourteen days of giving such notice; or
(c)before the expiry of the date of strike specified in
such notice; or
(d)during the pending of any conciliation proceedings
before a conciliation officer and seven day after the
conclusion of such proceedings
2. No employer carrying on any pubic utility shall
lock-out any of his workman —
(a)without giving them notice of lock out within six
weeks before locking out; or
(b)within fourteen day of giving such notice; or
(c)before the expiry of the date of lock-out
specified in any such notice
(d)during the pendency of any conciliation
proceedings before a conciliation officer and
seven day after the conclusion of such
proceedings
23.General prohibition of strikes and lock-outs – No
workman who is employed in an industrial
establishment shall go on strike in beach of contract
and no employer of any such workman shall declare a
lock-out —
(a) during the pendency of conciliation proceedings before
a Board and seven day after the conclusion of such
proceedings;
(b) during the pendency of proceedings before a labour
court, Tribunal, or National Tribunal and two months
officer conclusion of such proceedings
(bb) during the pendency of arbitration proceedings before
an arbitrator and two months after the conclusion of
such proceedings
(c) during any period in which a settlement or award is in
operation in respect of any of the matters. Covered by
the settlement or award
24. Illegal strikes and lock-outs — (1) a
strike or lock-out shall be illegal if-
(i) it is commenced or declared in contravention
of section 22 or section 23; or
(ii) it is continued in contravention of an order
of a reference under section 10 or section
10A
(iii)A lock-out declared in consequence of an
illegal strike or a strike declared in
consequence of an illegal lock-out shall not
be deemed to be illegal
25B Definition of continuous service
a) 240 days in case of work above ground in year
b) 190 days in case of workman employed below ground in a mine in a year
c) Ninety five days, in case if a workman below ground is a mine for period of
six months
d) One hundred and twenty days, in all other cases
e) these days include .
i. Actual days worked
ii. Leave with wages
iii. Legal strike
iv. Legal lockout
v. Lay-off
vi. Maternity leave
25C. Right of workman laid off for compensation
If the workman has completed one year of continuous employment, he shall
be entitled to fifty percent of the wages except for weekly holiday
25E. Workman not entitled to compensation in
certain cases —
No compensation shall be paid to a workman who was
been laid off -
i. If he refuses to accept away alternative employment
in the same establishment or another establishment
belonging to the same employer situated within a
radius of five miles and such work does not call for
any special skill or previous experience.
ii. If the does not present himself for work at the
establishment of the appointed time during normal
hours at least once a day
iii. If such laying – off is due to a strike or slowing down
of production on the part of workman in another part
of the establishment
25F. Conditions precedent to retrenchment —
No workman employed in any industry who has been
in continuous service for not less than one year
under an employer shall be retrenched by that
employer until.
a) The workman has bee given one month’s notice in
writing indicating the reasons for entrenchment and
that period of notice has expired, or the workman
has been paid in lieu of such notice, wages for the
period of notice.
b) The workman has been paid, at the time of
retrenchment, compensation which shall be
equivalent to fifteen days’ average pay for every
completed year of service or any part thereof in
excess of six months
c) Notice in the prescribed means is served on the
appropriate government
25 FFA. Sixty days notice to be given of intention to close down
any underlining
However, sixty days notice is not required
— if less than 50 workman are employee
— if it is a construction project
— accident of death of employer
25FFF. Compensation to workman in case of closing down of
undertaking — The compensation payable shall be same as
under 25F
In case the undertaking in closed down on account of unavoidable
circumstance beyond the control of the employer, then
compensation to be paid to be workman under clause (b) of 25F
shall not exceed his average pay for three months
25G. Proceeding for retrenchment
In any category of workman- last in first out (LIFO). Exceptions incase
of skill or expertise
25 Re- employment of retrenched workman
For fresh recruitment retrenched employees shall have preference
over other persons
25K. Application of chapter V-B
To an establishment in which not less than one hundred workman are
employed (in some States it is 50 & some even 300)
25L. Definitions – For the propose of this chapter
a) ‘Industrial establishment’ means-
i. A factory
ii. A mine
iii. A plantation
iv. Where the Government holds fifty one percent of paid- up capital
v. Any corporation establishment by or under any law made by Parliament
25M Prohibition of lay – off
a) Approval of Government is necessary to lay off
b) In case of natural calamity, fire in a mine, flood, excess of in flammable
gas or explosion approval in not regard
25N. Condition precedent to retrenchment of workmen
No workman employed in any industrial establishment to which this
Chapter applies, who has been in continuous service for not
less than one year under an employer are shall be retrenched
by that employer until — 
a) the workman has been given three months’ notice in writing
indicating the reasons for retrenchment and the period of notice
has expired or the workman has been paid in lieu of such
notice, wages for the period of the notice, wages for the period
of the notice; and
b) retrenchment compensation equivalent to fifteen day average
pay for every completed year of service or any part thereof in
excess of six months is paid; and
c) the prior permission of the appropriate Government has been
obtained on an application made in this behalf
25.O. Procedure for closing down an undertaking
1) Apply ninety days in advance to the appropriate
Government
2) In case of accident or death of employer such period of
ninety days may be waived
3) Retrenchment compensation equivalent to fifteen days’
average pay for every completed year of continuous service
or any part thereof in excess of six months

CHAPTER V-C
25T. Prohibition of unfair labour practice – No employer or
workman or a trade union whether registered on not, shall
commit any unfair labour practice (Fifth Schedule)
33.Conditions of service etc, to remain unchanged under
certain circumstances during pendency of proceedings

— No change in condition of service when proceedings are in

progress in
 Conciliation
 Arbitration
 Adjudication
 Disciplinary proceedings
— No action shall be taken against a protected workman by
 Altering his conditions of service
 By discharging or punishing whether by dismissal or otherwise
 THE FIRST SCHEDULE
INDUSTRIES WHICH MAY BE DECLARED TO BE PUBLIC UTILITY
SERVICES
 
THE SECOND SCHEDULE
MATTERS WITHIN THE JURISDCTION OF LABOUR COURTS
 
THE THIRD SCHEDULE
MATTERS WITHIN THE JURSDICTION OF INDUSTRIAL TRIBUNAL
 
THE FOURTH SCHEDULE
CONDITIONS OF SERVICE FOR CHANGE OF WHICH NOTICE IS TO BE
GIVEN
 
UNFAIR LABOUR PRACTIES
ON THE PART OF EMPLOYERS AND TRADE UNION OF EMPLOYERS
 
ON THE PART OF WORKMAN AND TRADE UNION OF WORKMAN.
Object
An Act to require employers in industrial establishments
formally to define with sufficient precision the conditions
of employment under them and to make the said
conditions known to the workmen employed by them .
1. Short title extent and application-
1) This Act may be called the Industrial Employment
(Standing Order) Act, 1946
2) It extends to the whole of India
3) It applies to every industrial establishment wherein one
hundred or more workmen are employed, or were
employed on any day of the preceding twelve months.
2. Interpretation
(c) “ Certifying Officer” means a Labor Commissioner or a Regional Labour
Commissioner, and includes any officer appointed by the Govt. through
official Gazette.
(d) “ Employer” means the owner of an industrial establish mean to which this
Act applies, and includes-
(i) amanger of the factory
(ii) head of the department
(iii) a person responsible to the owner for the supervision and control of the
industrial establishment
(e) “ Industrial establishment “ means -
(i) an industrial establishment as defined in Payment of Wages Act
(ii) a factory an defined in Factories Act
(iii) a railway as defined in the Indian Railways Act
(iv) the establishment of a person who, for the purpose of fulfilling a contact with
owner of any industrial establishment, employs workmen.
(g) “standing order” means rules relating to matter set out
in the Schedule to this Act.
(h) “trade union” means a trade union for the time being
registered under the Indian Trade Unions Act, 1926
(i) “wages” and workman have the same meaning as
assigned to them in the Industrial Disputes’ Act, 1947
3. Submission of draft standing order.
(1) Once the Act becomes applicable the employer shall
within six months:-
a) Submit draft standing orders in five copies to the
certifying officer
b) The draft shall include all matters given in the Schedule
c) The draft shall contain prescribed particulars of the
workmen & name of trade union, if any.
4. Conditions for certification of standing order- Standing orders shall
be certifiable under this Act if
a) provisions have been made with respect to all matters set out in the
Schedule
b) they are otherwise in conformity with the provisions of this Act
5. Certification of standing order-
a) on receipt of draft standing orders the certifying officer shall forward a
copy to the trade union if any, or the workmen asking them file
objections, if any.
b) after hearing the employer & trade union or representatives of
workmen, the Certifying Officer shall decide if any changes are
required.
c) the Certifying Officer shall then certify the standing order & send the
copies to the employer & the trade union/ representative of the
workman.
 6. Duration & modification of standing orders—
a) no amendment is permissive within six months of first certification
b) amendment will require the process as 5 above.
10A. Payment of subsistence allowance –
(1) A suspended employee shall be paid :-
a) @ fifty present of his wages for the first ninety days of suspension
b) beyond the first ninety days @ seventy five percent of his wages if the
delay in completion of disciplinary proceedings is not attributable to the
conduct of the suspended workman
c) beyond the first ninety days @ 25% of his wages if the delay in completion
of disciplinary proceedings is attributable to the conduct of the suspended
workmen
12A. Temporary application of model standing orders. Till such time the
orders are certified after the Act becomes applicable, the model standing
orders shall be applicable
 MODEL STANDING ORDERS.
MATTERS TO BE PROVIDE IN STANDING OR SETS
 Classification of workman e.g., whether permanent, temporary, apperceives, probationers, or badli.
 Manner of intimating to workman periods and hours of work, holidays, pay-days and wage rates.
 Shift working
 Attendance & late coming
 Conditions of, procedure in applying for, and the authority which may grant, leave and holidays.
 Requirement to enter premises by certain gets, liability to search.
 Closing and reopening of section of the industrial establishment, and temporary stoppages of work
and the rights and liabilities of the employer and workman arising therefrom.
 Termination of employment, notice thereof to be giving by the employer and workman
 Suspension or dismissal or misconduct, and act of omission which constitute misconduct.
 Means of redressal for workman against unfair treatment or wrongful exactions by the employer or
his agent or servants.
 Service record
 Matters relating to service card, token tickets, certification of service
 Changes in residential address of workman
 Record of age
 Confirmation
 Age of retirement
 Transfer
 Medical did in case of accident
 Medical examination
 Secrecy
 Exclusive service
An Act to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstance
and for matters connected therewith

1. Short title, extent, commandment and application

1.This Act way be called the Contract Labour (Regulation and
Abolition) Act, 1970
2.It extends to the whole of India.
3.It comes in to force w.e.f. 10 Feb 1971
4. It applies :-
(a) to every establishment in which twenty or more
workmen are employed on were employed on any day of the preceding
twelve months as contract labour;
(b) to every contractor who employs or who employed on any day
of the preceding twelve months twenty or more workmen.
 2. Definitions
(a) Appropriate government can be Central or State Government as defined in Industrial Disputes Act, 1947
(b) a workman shall be deemed to be employed as “ contract labour” in or in connection with the work of an
establishment when he is hired in or in connection with such work by or through a contract, with or without
the knowledge of the principle employer
(c) “Contractor” in relation to an establishment, means a person who undertakes into produce a given result
for the establishment, other than a mere supply of goods or articles of manufacture to such establishment,
through contract labour or who supplies contract labour for any were of the establishment & includes a
sub-contractor
(e) “ establishment “ means –
(i) any office or department of the Government or a local authority; or
(ii) any place where any industry, trade, business, manufacture or occupation is carried on
(g) “ principal employer” means –
(i) for any office or department of the Government or local authority - the head of that department .
(ii) in a factory- occupier or manager
(iii) in a mine - the owner or agent,
(iv) in any other establishment- any person responsible for the supervision & control of the establishment.
(h) “ wages” – same wearing as in Payment of Wages Act, 1936
(i) “ Workman “ – Same as in Industrial Disputes Act, 1974)
- except an out – workman
7. Every principal employer shall apply for and obtain a registration certificate which will
mention the details of contractors & the number of contract labour thereof to be engaged
LICENSING OF CONTRATORS
12. The contractor shall obtain a license stating therein the name of principal employer and the
number of contract labour to be engaged.
 WELFARE AND HEALTH OF CONTRACT LABOUR
1. Canteen
2. Rest-Zooms
3. Other facilities
4. First-did facilities
The above shall be provided by the contractor, failing which by the principal employer. The
facilities are on same lives as in Factories Act & Rules.
21. Responsibility for payment of wages
(1) The contractor shall be responsible
(2) The disbursement of wages shall be witnessed by a representative of the principal
employer
(3) If the contractor fails to pay the wages, the principal employer shall do so & claim the
same from the contractor
Introduction

 The practice of paying bonus in India appears to have originates during first world war
when certain textile units granted 10% of wages as war bonus to there workers in 1917
 In certain cases of industrial disputes demand for payment of bonus was also included.
 In 1950, the full bench of the Labour Appellate Tribunal evolved a formula for
determination of bonus.
 A plea was made to raise that formula in 1959.
 At the second and third meetings of the Eighteenth Session of Standing Labour
Committee (G.O.I.) held in New Delhi in March / April 1960. It was agreed that a
commission be appointed to go into the question of bonus and evolve suitable names.
 The Government of India accepted the recommendations of the Commission, which was
tripartite body
 The the Payment of Bonus Bill was introduced in & passed by the parliament.
 Thus the Payment of Bonus Act, 1965 came into existence.
An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits
or on the basis of production on productivity and for matters connected therewith.
1)Short title, extent and application.
1) This Act may be called the Payment of Bonus Act, 1965
2) It extends to the whole of India
3) It shall apply to –
a)every factory; and
b)every other establishment in which twenty or more persons are employed on any day during an accounting
year .
2. Definitions
(1) “ accounting year “ means –
(i) in relation to a corporation, the year ending on the day on which the books and accounts of the
corporation are to be closed and balanced;
(ii) in relation to a company, the period in respect of which any profit and loss account of the company laid
before it in annual general meeting is made up, whether that period is a year or not.
(iii) in any other case -
a)the year commencing on the 1st day of April; or
b)if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day
other than 31st day of March, then at the option of the employer, the year ending on the day on which its accounts
are so closed and balanced
(4) “ allocable surplus means –
(a) in relation to an employer being a company (other than a banking company) which has not made the arrangements
prescribed under Income Tax Act for declaration for dividends, 67% of available surplus in an accounting year .
(b) in any other case 60% of available surplus .
(6) “ available surplus means the available surplus computed under section 5
(13) “employee “means any person other than a apprentice employed on a salary or wage not exceeding ten thousand
rupees per means in any industry to do any skilled, unskilled manual, supervisory, managerial, administration,
technical or clerical work for hire or reward, whether the terms of employment be express or implied .
(18) “ gross profits” means to gross profits calculated under section
(21) “salary or wage, means all remuneration (other than remuneration in respect of over-time work) capable of being
expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be
payable to any employed including dearness allowance but does not include-
(i) Allowance
(ii) HRA
(iii) Medical attendance
(iv) Travelling concession
(v) Any bonus (including incentive, production and attendance bonus)
(vi) Provident find contribution
(vii) Retrenchment compensation
(viii) Gratuity
(ix) Any commission
In short salary = Basics salary + D.A. (if applicable)
8. Eligibility of Bonus “ An employee will be entitled by when he has worked for 30 working day in that year

9. Disqualification for bonus – an employee shall be disqualified from receiving bonus if is dismissed from service for
(a) fraud;
(b) riotous or violent behaviour while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment

10. Payment of minimum bonus

 
8.33% of the salary or Rs. 100/- whichever is his higher
 
11. Payment of maximum bonus
- 20% of wages earned during the accounting year
12. Calculation of bonus with respect to certain employee
- salary limit for eligibility for bonus is Rupees ten thousand per month irrespective of actual salary
- salary for payment of bonus will be deemed to be Rupees three thousand five hundred per month
13. Computation of number of working days
The employee shall be deemed to have worked in an establishment in an accounting year
a) During lay – off
b) On leave with salary
c) Absent due to employment injury
d) Maternity leave
15. Set on & set off of allocable surplus –
(1) where allocable surplus exceeds the amount of maximum bonus payable, twenty percent of
the total salary of the employers in that according year shall be carried forward for set on in
the succeeding accounting year and so on upto & inclusive of the fourth accounting year.
(2) where allocable surplus is not available or falls short of minimum bonus payable, such
minimum amount of deficiency shall be carried forward for being set off in the succeeding
accounting year and so on upto & inclusive of forth accounting year
(3) In the sixth seventh accounting year the principle of set on and set off shall apply
16. Special provisions with respect to certain establishments
(1) For a newly set up establishment the employee shall be paid bonus in the first five
accounting year if in any of these years the employer derives profits.
(2) In the sixth & seventh accordingly year the principle of set on & set off shall apply
(3) From the eighth according year bonus shall be paid preceding in mind set on & set off as
applicable to any establishment ( not new one)
(4) From the eighth according year bonus is payable even if there are inadequate profits
 17. Time limit for payment of bonus :
(i) with a period of eight months from the close of the according year
(ii) within a month of an award as a result of an industrial dispute
 FIRST SCHEDULE
 
 Computation of Gross Profit
 
SECOND SCHEDULE
 
 Computation of Gross Profit

THIRD SCHEDULE
 
 Sums to be Deducted From Gross Profit

FOURTH SCHEDULE
 
 Set of & set off of allocable surplus (s.15)

 Special provisions with respect to certain establishments (S-16)

An Act to provide for certain benefit to employees in case of sickness, maternity,
and employment injury and to make provision for certain other matters in relation
thereto
1. Short title, extent, commencement application :-
(1) This Act may be called the Employees’ State Insurance Act, 1948
(2) In extents to the whole of India
(3) It shall come into force on such dates as the Central Government may by
notification in the official Gazette, appoint, and different dates may be appointed for
different provisions of this Act and for different States or for different parts thereof
(4) It shall apply, at the first Distance to all factories (including factories
belonging to the Government other than seasonal factories
 2. Definitions . — In this Act, unless there is anything repugnant in the subject or
context –
1) appropriate Government means, in respect of establishment under the control of
the Central Government or a railway administration or a major part or a mine or
oilfield, the Central Government and in all other case the State Government
2) “confinement” means labour resulting in the issue of a living child, or labour after
twenty six weeks of pregnancy resulting in the issue of a child whether alive or
dead
3) “contribution” means the sum of money payable to the Corporation by the
principal employer in respect of an employee and includes any amount payable
by or on behalf of the employee in accordance with the provisions of this Act.
4) “corporation” means the Employees State Insurance Corporation set up under
this Act.
8) “employment injury” means a personal injury to an employee caused by
accident or on occupational disease arising out of and in the course of his
employment, being an insurable employment whether the accident occurs or the
occupational disease is contracted within or outside the territorial limit of India.
(9) “employee “means any person employed for wages in or in connection with
the work of a factory or establishment to which this Act applies and includes —
(i) any person employed directly by the principal employer
(ii) any person employed by a contractor to work for a principal employer
(10) “exempted employee” means an employee who is not liable under this Act to
pay the employee’s contribution
(11) “family” means all or any of the following relatives of an incurred person,
namely –
(i) spouse;
(ii) a minor legitimate or adopted child dependent on the insured person;
(iii) a child who is wholly dependent on the earning of the insured person and who
is –
a) receiving education till he or she attains the age of twenty one years
b) an unmarried daughter;
(iv) a child who is infirm by reason of any physical or mental abnormality or injury
and is wholly dependent on the earnings of the insured person, so long as the
infirmity continuous;
(v) dependent parents
(13) “immediate employer” an employee directly employed by one
employer and his services are provided to the principal employer e.g. a
contractor;
(14) “insured person” means a person who is or was an employee in
respect of whom contributions are or were payable under this Act and who is,
by reason thereof, entitled to any of the benefits provided by this Act;
(15A)“permanent partial disablement” means such disablement of a permanent
nature, as reduces the earning capacity of an employee in every employment
which he was capable of undertaking at the time of the accident resulting in
the disablement .
(15B)“permanent total disablement” means such disablement of a permanent
nature as incapacitates an employee for all work which he was capable of
performing at the time of the accident resulting in such disablement;
(17) “principal employer”
(i) in a factory- the owner or occupier
(ii) In a Government controlled establishment – the prescribed authority or head
of department
(iii) a person responsible for the supervision and control of the establishment
(20) “sickness” means a condition which requires medical treatment and
attendance and necessitates abstention from work on medical grounds
(21) “temporary disablement” means a condition resulting from an employment
injury which requires medical treatment and renders an employee as a result
of such injury temporarily incapable of doing the work he was doing prior to or
at the time of injury
(22) “ wages” means all remuneration paid or payable in cash to an employee, if
the terms of contract of employment, express or implied, were fulfilled and
includes any payment to an employee in respect of period of authorized
leave, lock-out, strike which is not illegal or lay off and other additional
remuneration, if any, paid at intervals not exceeding two months
Example :-
Basic pay, Dearness allowance, House rent allowance, City compensatory allowance,
Overtime allowance, Payment for day of rest, Production incentive, Bonus other than
statutory bonus, Night shift allowance, Heat, Gas, Dust allowance, Payment for unsubstituted
holiday, meal/food allowance, Suspension allowance, Lay off compensation, Children
education allowance (not reimbursement for actual tuition fee)
NOT deemed on as wages :-
contribution paid by the employer to pension, or provident fund, sum paid to defray special
expenses entailed by the nature of employment (e.g. washing allowance) Daily allowance
paid for the period spent on tour, Gratuity payable on discharge, pay in lieu of notice of
retrenchment compensation, benefit paid under the ESI Scheme, Encashment of leave,
payment of inam which does not form part of the terms of employment, conveyance amount
towards reimbursement for duty related journey
(23) “ wage period” in relation to an employee means the period in respect of which
wages are ordinarily payable to him whether in terms of the contract of employment, express
or implied or other wise
(24) all other words and expressions used but not defined in this Act and defined in the
Industrial Dispute Act, 1947 shall have the meanings respectively assigned to them in the Act.
38. All the employees to be insured: - Subject to the provision of the Act, all the employees in
factories or establishments to which this Act applied shall be insured in the manner provided by
Act (10/20) persons are employed who are in receipt of wages up to Rs. 10,0000 per men sum;
39. Contributions —
(1) Employer’s : 4.75% of wages
(2) Employee’s : 1.75% of wages
40. Principal employer to pay contribution in the first instance
(1) The principal employer shall deduct and pay contractor’s share of contribution first & debit the
contractor
(2) The principal employer, in practice may allow the contractor to deposit the contribution & claim re-
imbursement from the principal employer
 46. Benefits :-
1) Disablement
2) Death
3) Maternity
4) Medical
5) Sickness
6) Funeral
An Act to regulate the payment of wages to certain classes of employed
persons
 
1. Short title, extent, commencement and application
1) This Act may be called the Payment of Wages Act, 1936
2) It extends to the whole of India
3) Comes into effect from 28th March, 1937
4) Applicable to wages payable in respect of a wage period which, over such
a wages period, average one thousand six hundred rupees a month or
more

2. Definitions
(h) (vi) “Wages means all remuneration whether by way of salary, allowances
or otherwise expressed in terms of money or capable of being so
expressed which would, if the terms of employment, express or implied,
were fulfilled, be payable to a person employed in respect of his
employment or work done in such employment but does not include:-
 - bonus
- value of house accommodation, supply of light, water medical attendance or other
amenity
- contribution paid by the employer to any pension or provident find
- any travelling allowance or value of travelling con cession
- any sum paid top the employed person to defray special expenses entailed on him by
the nature of his employment
- any gratuity payable on the termination of employment
3. Responsibility for payment of wages:-
Every employer shall be responsible for the payment to persons employed by him of
all wages required to be paid under this Act,
a) in factories, if a person has been named as manager of the factory under clause (f) of
sub-section (1) of Section 7 of the Factories Act 1948
b) in industrial or other establishments, if there is a person responsible to the employer
for supervision and control of the industrial or other establishment
4. Fixation of wages periods
(1) Every person responsible for the payment of wages under section 3 shall fix periods,
in this Act referred to as wages-period, in respect of which such wages shall be
payable
(2) No wage-period shall exceed on month
5. Time of payment of wages:-
(1) The wages of every person employed upon or in —
(a) any railway, factory or industrial or other establishment upon or in which less than one
thousand persons are employed, shall be paid before the expiry of the seventh day ,
(b) any other railway, factory or industrial or other industrial establishment, shall be paid
before the expiry of the tenth day,
after the last day of the wage-period in respect of which wages are payable
(4) all payments of wages shall be made on a working day
6. Wages to be paid in current coin or currency notes :
All wages shall be paid in current coin or currency notes or in both. Provided that the
employer may, after obtaining the written authorization of the employed person, pay
him his wages either by cheque or by crediting the wages in his bank account.
7. Deductions which may be made from wages
(a) fines , (b) deductions for absence from duty, (c) deductions for loss or damage of goods
entrusted to the employed person for custody or loss of money with he is required to
account, were such damage or loss is directly attributable to his neglect or default
(d) deductions for such amenities and services supplied by the employer
(e) deduction for house – accommodation supplied by the employer
(f) deduction for recovering of advances
(ff) deductions of recovery of loans made from any fund constituted for the welfare of labour
(fff) deduction for recovery of loan for house building or other purpose
(g) deduction of income tax payable by the employed person
(h) deductions to be made by order of a court or other authority competent to make such order,
(i) deductions for subscription to, and for repayment of advances from any provident fund
(j) deductions for payments to cooperative societies
(k) LIC premium if authorized in writing (salary saving scheme)
(kk) Contribution if authorized in writing to any fund constituted by employer or a registered
trade union for the welfare of employed persons or the members of their families, or both
(kkk) membership fee to trade union if authorized is writing
 (l) deductions for payment of insurance premia on Fidelity Guarantee Bonds
(m) deduction on account of acceptance of counterfeit or base coins or mutilated or
forged currency notes
(p) deductions, made with the written authorization of the employed person, for
contribution to the Prime Minister’s National Relief Fund or to such other funds
as the central government may notify.
(q) deduction for any contributions to any insurance scheme framed by the Central
Government for the benefit for its employees
8. Fines. (1) No fines shall be Imposed on any employed person save in respect
of such acts and omissions on his part as the employer, with the previous
approval of the state Government or the prescribed authority, may have
specified under sub-section (2).
(2) A notice specifying such acts and omissions shall be exhibited in the
prescribed manner on the premises of which the employment is carried out
(3) No fine shall be imposed on any employed person until he has been given an
opportunity of showing cause against the fine, or otherwise than in accordance
with such procedure as may be prescribed for the imposition of fines
(4) The total amount of fine which may be imposed in any wage-period on any employed person shall
not exceed an amount equal to three percent of the wages payable to him in respect of that wage
period
(5) No fine shall be imposed on any employed person who is under the age of fifteen years
(6) No fine imposed on an employed person shall be recovered from him by installments or after the
expiry of sixty days from the day on which it was imposed
(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of
which it was imposed
9. Deduction’s for absence from duty – (1) Deductions may be made for absence from duty only
on account of the absence of an employed person from the place or place of employment he is
required to work, such absence being for the whole or any part of the period during he is required
to work.
2. The amount of such deduction shall in no case bear to the wages payable to the employed person
in respect of the wage-period for which the deduction is made than a larger proportion than the
period for which he was absent bears to the total period, within such wage-period during which by
the terms of his employment, he was required to work.
Provided that, subject to any rules made on this behalf by the State Government, if ten or more
employed persons acting in concert absent themselves without due notice (that is to say without
giving notice which is required under the terms of their contract of employment) and without
reasonable cause, such deduction from any such person may include such amount not exceeding
his wages for eight days as may by any such terms be due to the employer in lieu of due notice
Explanation. — For the purpose of this section, an employed
person shall be deemed to be absent from the place where is
required to work if, although present in such place, he refuses,
in pursuance of a stay-in strike on for any other cause which is
not reasonable in the circumstance, to carry out his work

10.Deductions for damage or loss –

(1) A deduction for damage on loss shall not exceed the amount
of damage or loss to the employer by the neglect or default of
the employed person

(2) No deduction shall be made without the employed person

having been given an opportunity of showing cause against
the deduction
An Act to provide for 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 matter
connected therewith or incidental thereto
1. Short title, extent and commencement
1) This Act may be called the Equal Remuneration Act, 1976
2) It extends to the whole of India
3) It shall come into force on such date as notified by the Central Government (11 th February, 1976).
2. Definitions
(g) “remuneration” means 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 .
(h) “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, be a man or woman and the
difference, if any between the skill, effort and responsibility required of a man and those required of a
woman are not of practical importance in relation to the terms and conditions of employment
4. Duty of employer to pay equal remuneration to men and women workers for same work or work of
a similar nature —
- Same wages for men & women workers
5. No discrimination to be made while recruiting man and women workers
- Conditions of service , promotions, training, transfer
Except where employment of women is restricted or prohibited
An Act to provide for payment to certain classes of employers to their workman for compensation for in injury by
accident
1. Short title, extent and commencement
(1) This Act may be called the Workmen’s Compensating Act, 1923
(2) It extends to the whole of India
(3) It shall come into force on the first day of July, 1924
Coverage of workmen
All workers irrespective of their status or salaries either directly or through contractor or a person recruited to work
abroad
Employer’s liability to pay compensation to a workman
On death or personal injury resulting in total or partial disablement or occupational disease caused to a workman
arising out of and during the course of employment
Wages
When the monthly wages are more than Rs. 5000/- per month it will be deemed to be Rs. 5000/-
Amount of Compensation
Where death of the workman results from an injury
 An amount equal to fifty percent of the monthly wages of the deceased workman multiplied by the relevant
factor or an amount of one lac rupees, whichever is more
Where permanent total disablement results from the injury
 An amount equal to sixty percent of the monthly wages of the injured workman multiplied by the relevant
factor or an amount of rupees one lac twenty thousand, which ever is more
 Procedure for calculation
Higher the age- Lower the compensation
• Relevant factor specified in the Schedule IV giving slabs depending upon the age of the workman concerned
 Example : In case of death
 Wages Rs. 3000 p.m.
 Age 23 years
 Factor as in Schedule IV : Rs. 219.95
 Amount of compensation is Rs. 329935
 In case of total disablement Rs. 395910
When an employer is not liable for compensation
• In respect of any injury which does not result in the total or partial disablement of the workman for a period not
exceeding three days.
• In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is
directly attributable to
 The workman having been at the time thereof under the influence of drink or drug, or
 Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose
of serving the safety of workman, or
 Willful removal or disregard by the workman of any safety guard or other device which he knows to have been
provided for the purpose of securing the safety of workman
Bar upon Contracting out
No workman can relinquish his right to compensation for personal injury
An Act to provide for the institution of provident funds, pension fund and deposit link
insurance fund for employees in factories and other establishments.
1. Short Title, extent and application
1) This Act may be called the Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952
2) It extends to the whole of India except the State of Jammu and Kashmir
3) It applies —
(a) To every establishment which is a factory which is engaged in any industry
specified in Schedule I and in which twenty or more persons are employed
(b) To any other establishment employing twenty or more persons are employed
as notified by the Central Government
4) to any establishment, with the approval of the Central Provident Fund
Commissioner if any application is made by the employer and majority of
employees that they would want the Act to be applicable to their establishment
 5) An establishment to which this Act applies shall continue to be governed by this Act not
withstanding that the number of persons employed therein at any time falls below twenty
2. Definitions. —
b) “basic wages” means all emoluments which are earned by an employee while on duty or
on leave or on holidays with wages in either case in accordance with the terms of the
contract of employment which are paid or payable in cash to him but does not include —
i) the cash value of any food concession;
ii) any dearness allowance (that is to say, all cash payments by whatever name called paid
to an employee on account of a rise in the cost of living)
iii) house – rent allowance
iv) overtime allowance
v) bonus
vi) commission
vii) any presents made by the employer
c) “contribution” means a contribution payable in respect of a member under a Scheme or
the contribution payable in respect of an employee to whom the Insurance Scheme
applies
e) “employer” means —
i) a factory — the owner or occupier
ii) any other establishment — the person who has ultimate control over the affairs of the
establishment, if so entrusted, managing director, manager
f) “employee” means (i) any person who is employed for wages in any kind of work, manual or
otherwise, in or in connection with the work of an establishment, and who gets, his wages
directly or indirectly from the employer and includes any person employed by or through a
contractor in or in connection with the work of the establishment.
ii) engaged as an apprentice not being an apprentice engaged under the Apprentices Act,
1961, or under the standing orders of the establishment
“ff” “exempted employee” means an employee to whom a Scheme or the Insurance Scheme, as
the case may be, would, but for the exemption granted under section 17, have applied
fff) “exempted establishment” means an establishment in respect of which an exemption has
been granted under section 17 from the operation of all or any of the provisions of any
Scheme or the Insurance Scheme, as the case may be, whether such exemption has been
granted to the establishment as such or to any person or class of persons employed therein
h) “Fund” means the provident fund established under Scheme
i) “Industry” means any industry specified in Schedule I, and includes any other industry as added to the Schedule
from time to time;
ia) “Insurance Fund” means the Employees’ Deposit – linked Insurance Scheme
ie) “manufacturing”, or “manufacturing process” a “factory means those as defined in the Factories Act, 1948
j) “member” means a member of the Fund
kA) “Pension Fund” means the Employees’ Pension Fund
kB) “Pension Scheme” means the Employees’ Pension Scheme
l) “Scheme” means the Employees’ Provident Fund Scheme, 1952
ll) “Superannuation” in relation to an employee, who is the member of the Pension Scheme means the attainment,
by the said employee of the age of fifty-eight years
10. Protection against attachment
The amount standing to the credit of any member or after his death, his nominee cannot be liable for attachment under
decree or order of any court in respect of any debt or liability incurred by the member.
12. Employer not to reduce wages etc, — No employer shall reduce, whether directly or indirectly, the wages
of any employee who is a member of the Scheme
16A. Authorising certain employers to maintain provident fund account
Where the employer and at least 100 employees approach the Provident Fund Commissioner to permit them to
maintain their own provident fund account , they may be permitted to do so
17. Exempted establishment
1. On an application by the employer & employees, the Provident Fund
Commissioner may permit the employer to have his own Provident Fund Scheme
2. A Trust has to be created for this purpose.
3. All contributions and records are to be maintained by the Trust.
4. The Provident Fund authorities have the duty to inspect the records of the Trust.
5. 1.10% of wages (administration & inspection charges) will be paid to Provident
Fund authorities by the Trust
6. 8.33% of wages as contribution to Employees’ Pension Fund, shall, however be
deposited with the Provident Fund authorities by the Trust because the
Employees’ Pension Scheme is operated by them

Salary limit for being entitled to be covered by the Act is Rs. 6500/- per month
The deductions and contribution to be made

Employee’s Employer’s

Employees’ 12 % of Salary+ DA 3.67 % Salary+DA

Provident Fund
Employees’ NIL 8.33% of
Pension Fund Salary+DA subject
to limit of Rs. 541/-
Employees’ NIL 0.50%of Salary+DA
Deposit-linked
Insurance (EDLI)
Administrative NIL 1.10% of
Charges for PF Salary+DA
Administrative NIL 0.01% of
Charges for EDLI Salary+DA subject
to minimum of
Rs.2/-
An Act to regulate the employment of women in certain establishments for certain periods
before and after child birth and to provide for maternity benefit and certain other benefits
1. Short title, extent and commencement
1)This Act may be called the Maternity Benefit Act, 1961.
2)It extends to the whole of India.
3)It come into force w.e.f. 1-11-1963
2. Application of Act.
1)It applies to every —
a)factory, mine or plantation
2)To every establishment wherein persons are employed for the exhibition of equestrian
acrobatic and other performances.
3)Shop establishment in a State in which ten or more persons are employed or were
employed, on any day of the preceding twelve months.
4)It shall not apply to any factory or other establishment to which the provisions of the
Employees’ State Insurance Act, 1948, apply.
3. Definitions
b)“child” includes a still born child
c)“delivery” means the birth of a child
h) “maternity benefit” means the payment referred to is sub-section (1) of
section 5
ha) “medical termination of pregnancy” means the termination of pregnancy
permissible under the provisions of the “Medical Termination of Pregnancy Act, 1971.
j) “miscarriage” means expulsion of the contents of a pregnant uterus at any
period prior to or during the twenty – sixth week of pregnancy but does not include
any miscarriage the causing of which is punishable under the Indian Penal Code.
n) “wages” means all remuneration paid or payable in cash to a woman, if the
terms of contract of employment, express or implied, were fulfilled and includes —
1)such cash allowances (including dearness allowance and house rent allowance) as
a woman is for the time being entitled to;
2)incentive bonus; and
3)the money value of the concessional supply of food grains and other articles,
 but does not include —
i) any bonus other than incentive bonus;
ii) overtime earnings and any deduction or payment made on account of fines;
iii) any contribution paid or payable by the employer to any pension fund or provident fund or
for the benefit of the woman under any law for the time being in force; and
iv) any gratuity payable on the termination of service
o) “woman” means a woman employed whether directly or through any agency, for wages in
an establishment
4. Employment of, or work by, women prohibited during certain period —
1) No employer shall knowingly employ a woman in an establishment during the six weeks
immediately following the day or her delivery, miscarriage or medical termination of
pregnancy
2) No woman shall work in any establishment during the six weeks immediately following the
day of her delivery, miscarriage, or medical termination of pregnancy.
3) No pregnant woman shall on a request being made by her in this behalf, be required by
her employer to do during the period specified in subsection (4) any work which is of on
arduous nature or which involves long hours of standing or which in any way is likely to
interfere with her pregnancy or the normal development of the foetus or is likely to cause
her miscarriage or otherwise to adversely affect her health.
 4. The period referred to in sub-section (3) shall be —
a) the period of one month immediately preceding the period of six weeks, before the date of her
expected delivery;
b) any period during the said period of six weeks for which the pregnant woman does not avail of
leave.
5. Right to payment of maternity benefit.
1) Every woman shall be entitled to, and her employer shall be liable for, the payment of maternity
benefit at the rate of the average daily wage for the period of her actual absence, that is to say, the
period immediately preceding the day of her delivery, the actual date of delivery and any period
following that day .
2) No woman shall be entitled to maternity benefit under she has actually worked in an establishment
of the employer from whom she claims maternity benefit, for a period of not less than eighty days in
the twelve months immediately preceding the date of her expected delivery.
3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve
weeks of which not more than six weeks shall precede the date of her expected delivery.
5B. Payment of maternity benefit in certain cases
A woman employee covered by the Employees’ State Insurance Act, 1948 cannot claim benefits
under the Maternity Benefit Act 1961
8. Payment of medical bonus. — Every woman entitled to maternity benefit under this Act shall
also be entitled to receive from her employer a medical bonus of two hundred and fifty rupees, if
no prenatal and postnatal care is provided for by the employer free of charge.
9. Leave for miscarriage, etc. — In case of miscarriage or medical termination of pregnancy, a
woman shall, on production of such proof as may be prescribed, be entitled to leave with wages
at the rate of maternity benefit, for a period of six weeks immediately following the day of her
miscarriage or, as the case may be, her medical termination of pregnancy.
9A. Leave with wages for tubectomy operation. — In case of tubectomy operation, a woman shall,
on production of such proof as may be prescribed, be entitled to wages at the rate of maternity
benefit for a period of two weeks immediately following the day of her tubectomy operation.
10. Leave for illness arising out of pregnancy, delivery, premature birth of child, miscarriage,
medical termination of pregnancy or tubectomy operation.— An additional maternity benefit
for a maximum period of one month.
11. Nursing breaks.— Every woman delivered of a child who returns to duty after such delivery
shall, in addition to the interval of rest allowed to her, be allowed in the course of her daily work
two breaks of the prescribed duration for nursing the child until the child attains the age of fifteen
months (usually 15 minutes plus travelling time).
12. Dismissal during absence or pregnancy —
1) No dismissal or discharge during maternity leave
2) Employer cannot deprive the woman of maternity benefits except in case of gross misconduct
13. No deduction of wages in certain cases — No
deduction from the normal and usual daily wages of a
woman entitled to maternity benefit under the
provisions of this Act shall be made by reason only of
—
a) the nature of work assigned to her by virtue of the
provisions contained in sub-section (3) of Section 4; or
b) breaks for nursing the child allowed under the
provisions of Section 11.
The concept of minimum wages first evolved with reference to
remuneration of workers in those industries where the level of
wages was substantially low as compared to the wages for similar
types of labour in other industries.

The need of a legislation for fixation of minimum wages in India

received an impetus after World War II, on account of the necessity
of protecting the interest of demobilized personnel seeking
employment in industries.

An Act to provide for fixing minimum rates of wages in certain

employment
1. Short title and extent — (1) This Act may be called the Minimum
Wages Act, 1948
2. (2) It extends to the whole of India.
 2. Interpretation.
(d) “cost of living index number” in relation to employees in any scheduled
employment in respect of which minimum rates of wages have been fixed, means
the index number ascertained and declared by the competent authority by
notification in the Official Gazette to be the cost of living index number applicable
to employees in such employment;
(g) “scheduled employment” means an employment specified in the Schedule, or any
process or branch of work forming part of such employment;
(h) “wages” means all remuneration, capable of being expressed in terms of money,
which would, if the terms of the contract of employment, express or implied, were
fulfilled, be payable to a person employed in respect of his employment or work
done in such employment and includes house rent allowance, but does not
include —
(i) the value of
(a) any house accommodation, supply of light, water, medical attendance, or
(b) any other amenity or any service excluded by general or special order of the
appropriate Government;
(ii) any contribution paid by the employer to any Pension Fund or Provident Fund,
or under any scheme of social insurance
(iii) any travelling concession;
(iv) any sum paid to the person employed to defray special expenses entailed on
him by the nature of his employment; or
(v) any gratuity payable on discharge;
3. Fixing of minimum rates of wages.
(1) The appropriate Government shall, in the manner hereinafter provided,—
a) fix the minimum wages payable to employees employed in an employment
specified in Part I or Part II of the Schedule
b) review at such intervals, as it may think fit, such intervals not exceeding five
years, the minimum rates of wages so fixed and revise the minimum rates, if
necessary
(2) The appropriate Government may fix —
a) a minimum rate of wages for time work (hereafter referred to as ‘a minimum
time rate’);
b) a minimum rate of wages for piece work (hereinafter referred to ‘a minimum
piece rate’);
c) a minimum rate of remuneration to apply in the case of employees employed on piece work
for the purpose of securing to such employees a minimum rate of wages on a time work
basis (hereinafter referred to as ‘a guaranteed time rate’)
d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for minimum rate
which would otherwise be applicable, in respect of overtime work done by employees
(hereinafter referred to a ‘overtime rate’).
(3) In fixing or revising minimum rates of wages under this section, —
(a) different minimum rates of wages may be fixed for —
i. different scheduled employments;
ii. different classes of work in the same scheduled employment;
iii. adults, adolescents, children and apprentices;
iv. different localities
Note : Minimum Wages can be fixed on Industry – cum – Region basis
b) Minimum rates of wages may be fixed by any one or more of the following wage periods,
namely :—
i. by the hour,
ii. by the day,
iii. by the month, or
iv. by such larger wage – period as may be prescribed.
 Provided that where any wage-periods have been fixed under section 4 of the
Payment of Wages Act, 1936, minimum wages shall be fixed in accordance therewith
4. Minimum rate of Wages
(1) Any minimum rate of wages fixed or revised by the appropriate Government in
respect of scheduled employments under section 3 may consist of —
i. a basic rate of wages and a special allowance at a rate to be adjusted, at such
intervals and in such manner as the appropriate Government may direct, to accord as
nearly as practicable with the variation in the cost of living index number applicable to
such workers (hereinafter referred to as the ‘cost of living allowance’); or
ii. a basic rate of wages with or without the cost of living allowance, and the cash value
of the concessions in respect of supplies of essential commodities at concession rates,
where so authorized; or
iii. an all – inclusive rate allowing for the basic rate, cost of living allowance and the
cash value of the concessions, if any.
(2) The cost of living allowance and the cash value of the concessions in respect of
supplies of essential commodities at concession rates computed by the competent
authority at such intervals and in accordance with such directions as may be specified
or given by the appropriate Government
 5. Procedure for fixing and revising minimum wages.
(1) In fixing minimum rates of wages in respect of any scheduled employment for the
first time under this Act or in revising minimum rates of wages so fixed, the
appropriate Government shall either —
(a) appoint as many committees and sub-committees as it considers necessary to held
enquiries and advise it in respect of such fixation or revision, as the case may be, or
(b) by notification in the Official Gazette, publish its proposals for the information of
persons likely to be affected thereby and specify a date, not less than two months
from the date of notification, on which the proposals will be taken into consideration.
(2) After considering the advise of the committee or committees appointed under
clause (a) of sub-section (1), or as the case may be all representations received by
it before the date specified in the notification under clause (b), of that sub-section,
the appropriate Government shall, by notification in the Official Gazette, fix, or, as
the case may be, revise the minimum rates of wages in respect of each scheduled
employment, and unless such notification otherwise provides, it shall come into
force on the expiry of three months from the date of its issue.
 Provided that were the appropriate Government proposes to revise the minimum
rates of wages by the mode specified in clause (b) of sub-section (1), the
appropriate Government shall consult the Advisory Board also.
7. Advisory Board. For the purpose of coordinating the work of committees and
sub-committees appointed under section 5 and advising the appropriate
Government generally in the matter of fixing and revising minimum rates of wages,
the appropriate government shall appoint an Advisory Board.
8. Central Advisory Board.
1) For the purpose of advising the Central and State Governments in the matter of
the fixation and revision of minimum rates of wages and other matters under this
Act and for coordinating the work of the Advisory Board, the Central Government
shall appoint a Central Advisory Board.
2) The Central Advisory Board shall consist of persons to be nominated by the
Central Government representing employers and employees in the scheduled
employments, who shall be equal in number, and independent persons not
exceeding one-third of its total number of members; one of such independent
persons shall be appointed the Chairman of the Board by the Central Government.
 9. Composition of committees etc. —
The composition of committees, Sub-committees and the Advisory Board shall be the same as stated
in section 8 above
11. Wages in Fixed
1) Minimum wages payable under this Act shall be paid in cash.
2) Where it has been the custom to pay wages wholly or partly in kind, the appropriate Government
being of the opinion that it is necessary in the circumstances of the case may, by notification in
the Official Gazette, authorize the payment of minimum wages either wholly or partly in kind.
3) If the appropriate Government of the opinion that provisions should be made for the supply of
essential commodities at concessional rates, the appropriate Government may, by notification in
the official Gazette, authorize the provision of such supplies at concessional rates.
4) The cash value of wages in kind and of concessions in respect of supplies of essential
commodities at concessional rates authorized under sub-section (2) and (3) shall be estimated in
the prescribed manner.
12. Payment of minimum rates of wages.
1) Where in respect of any scheduled employment a notification under section (5) is in force, the
employer shall pay to every employee engaged in a scheduled employment under him wages at a
rate not less than the minimum rate of wages fixed by such notification for that class of
employees in that employment without any deductions except as may be authorized within such
time and subject to such conditions as may be prescribed.
2) Nothing contained in this section shall affect the provisions of the Payment of Wages
Act, 1936.
13. Fixing hours for normal working day, etc.
1) In regard to any scheduled employment minimum rates of wages in respect of which
have been fixed under this Act, the appropriate Government may —
a) fix the number of hours of work which shall constitute a normal working day, inclusive of
one or more specified intervals;
b) provide for a day of rest in every period of seven days which shall be allowed to all
employees or to any specified class of employees and for the payment of remuneration
in respect of such days of rest;
c) provide for payment for work on a day of rest at a rate not less than the overtime rate.
2) The provisions of sub-section (1) shall, in relation to the following classes of employees,
apply only to such extent and subject to such conditions as may be prescribed :—
a) employees engaged on urgent work, or in any emergency which could not have been
foreseen or prevented;
b) employees engaged in work in the nature of preparatory or complementary work which
must necessarily be carried on outside the limits laid down for the general working in
the employment concerned;
c) employees whose employment is essentially intermittent;
d) Employees engaged in any work which for technical reasons has to be completed before the duty is over;
e) Employees engaged in a work which could not be carried on except at times dependent on the irregular
action of natural forces”
3) For the purpose of clause (c) of sub-section (2), employment of an employee is essentially intermittent
when it is declared to be so by the appropriate Government on the ground that the daily hours of duty of
the employee, or if there be no daily hours of duty as such for the employee, the hours of duty, normally
include periods of inaction during which the employee may be on duty but is not called upon to display
either physical activity or sustained attention.
14. Overtime.
1) Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by the day or such
a longer wage-period as may be prescribed, works on any day in excess of the number of hours
constituting on normal working day, the employer shall pay him for every hour or part of an hour so
worked in excess at the overtime rate fixed under their Act or any law of the appropriate Government for
the time being in force, whichever is higher.
2) Nothing in this Act shall prejudice the operation of the provisions of section 59 of the Factories Act, 1948
in any case where those provisions are applicable.
15. Wages of worker who works for less than normal working day.
It any employee whose minimum rate of wages has been fixed under this Act by the day works on any
day on which he was employed for a period of less than the requisite number of hours constituting a
normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in
respect of work done by him on that day as if he had worked for a full normal working day.
 Provided, however, that he shall not be entitled to receive wages for a full
normal working day —
i. in any case where his failure to work is caused by his unwillingness to work
and not by the omission of the employer to provide him with work, and
ii. in such other case and circumstances as may be prescribed.
17. Minimum time rate wages for piece work
Where an employee is employed on piece work for which minimum rate and
not a minimum piece rate has been fixed under this Act, the employer shall
pay to such employee wages at not less than the minimum time rate.
25. Contracting out. — Any contract or agreement, whether made before or
after the commencement of this Act, whereby an employee either
relinquishes or reduces his right to a minimum rate of wages or any
privilege or concession accruing to him under this Act shall be null and void
in so far as it purports to reduce the minimum rate of wages fix under this
Act.
 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
1. Short title, extent, application and commencement
1) This Act may be called the Payment of Gratuity Act, 1972.
2) It extends to the whole of India.
Provided that in so far as it relates to plantations or ports it shall not extend to the
State of Jammu & Kashmir.
3) It shall apply to —
a) every factory, mine, oilfield, port and railway company;
b) every shop or establishment within the meaning of any law for the time being in
force in relation to shop 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 establishment 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.
 (3A) A shop or establishment to which this Act has become applicable shall continue to be governed by
this Act notwithstanding that the number of persons employed therein at any time after it has
become applicable falls below ten.
(4) It came into force on 16-09-1972.
2. Definitions.
b) “completed year of service” means continuous service for one year;
c) “continuous service” means continuous service as defined in section 2A;
e) “employee” means any person (other than an apprentice) employed on wages in any
establishment, factory, mine, oilfield, plantation, part, railway company or shop to do any skilled,
semi-skilled manual, supervisory, technical or clerical work, whether the terms of such employment
are express or implied, and whether or not such person is employed in a managerial or
administrative capacity, but not Government employees;
q) “retirement” means termination of the service of an employee otherwise than on superannuation;
r) “superannuation”, in relation to an employee, means the attainment of the employee of such age
as is fixed in the contract or conditions of service as the age on the attainment of which the
employee shall vacate the employment.
s) “wages” means all emoluments which are earned by an employee while on duty or on leave in
accordance with the terms and conditions of his employment which are paid or are payable to him
in cash and includes dearness allowance but does not include any bonus, commission, house rent
allowance, overtime wages and any other allowance.
 2A. Continuous service. For the purpose of this Act, —
1) an employee shall be said to be in continuous service for a period if he has, for that
period, been in uninterrupted service, including leave, absence from duty without
leave (not being absence in respect of which an order treating the absence as break
in service in accordance with the standing orders, rules or regulations governing the
employees of the establishment), lay-off, strike or lock – out or cessation of work not
due to any fault of the employee, whether such uninterrupted or interrupted service
was rendered before or after the commencement of this Act.
2) where an employee (not being an employee in a seasonal establishment) is not in
continuous service with the meaning of clause (1), for any period of one year or six
months, he shall be deemed to in continuous service under the employer —
a) for the said period of one year, if the employee during the period of twelve calendar
months preceding the date with reference to which calculation has to be made, has
actually worked under the employer for not less than —
i. One hundred and ninety days, in the case of an employee employed below the
ground in a mine or in an establishment which works for less than six days in a week;
and
ii. two hundred and forty days , in any other case;
b) for the said period of six months, if the employee during the period of six calendar months
preceding the date with reference to which calculation is to be made, has actually worked
under the employer for not less than —
i. ninety-five days, in the case of an employee employed below the ground in a mine or in
an establishment which works for less than six days in a week; and
ii. one hundred and twenty days, in any other case
Explanation. — For the purpose of clause (2) the number of days on which an employee has
actually worked under an employer shall include the days on which —
i. he has been laid-off
ii. he has been on leave with full wages, earned in the previous year
iii. he has been absent due to temporary disablement caused by accident arising out of and
in the course of his employment; and
iv. in the case of a female employee, she has been on maternity leave; so, however, that the
total period of such maternity leave does not exceed twelve weeks.
3) Where an employee, employed in a seasonal establishment, is not in continuous service
within the meaning of clause (1), for any period or one year or six months, he shall be
deemed to be in continuous service under the employer for such period if he has actually
worked for not less than seventy – five percent of the number of days on which the
establishment was in operation during such period.
4. Payment of Gratuity.
1) 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.
a) on his superannuation
b) on his retirement or resignation; or
c) on his death or disablement or disease;
Provided that the completion of continuous service of five years shall not be necessary where
the termination of the employment of any employee is due to death or disablement.
2) For every completed year of service or part thereof in excess of six months, the
employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on
the rate of wages last drawn by the employee concerned.
Provided that in case of an employee who is employed in a seasonal establishment and who
is not so employed throughout the year, the employer shall pay the gratuity at the rate of
seven days’ wages for each season.
Explanation.— In the case of a monthly rated employee, the fifteen days’ wages shall be
calculated by dividing the monthly rate of wages last draws by him by twenty-six and
multiply the quotient by fifteen.
 Gratuity payable = Wages last drawn x 15 x No of years of continuous
26 service and periods exceeding
six months
3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees
(this is for income tax purpose for employee & employer).
4) For the purpose of computing the gratuity payable to an employee who is employed, after his
disablement, on reduced wages, his wages for the period preceding has disablement shall be taken to
be the wages received by him during that period, and his wages for the period subsequent to his
disablement shall be taken to be the wages so reduced.
5) 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.
6) Not with standing anything contained is sub-section (1), —
a) the gratuity of an employee, whose services have been terminated for any act of willful omission or
negligence causing any damages or loss to, or destruction of any property belonging to the employer
shall be forfeited to the extent of the damage or loss so caused.
b) the gratuity of the employee may be wholly or partly forfeited—
i. if the services of such employee have been terminated for his riotous or disorderly conduct or any act
of violence on his part, or
ii. if the services of such employee have been terminated for any act which constitute an offence
involving moral turpitude, provided that such offence is committed by him in the course of his
employment.
4A. Compulsory insurance. (1) with effect from such date as may notified by the
appropriate Government in this behalf, every employer, other that an employer or an
establishment belonging to, or under the control of, the Central Government or a
State Government shall, subject to sub-section (2), obtain an insurance, in the
manner prescribed, for his liability for payment towards the gratuity under this Act,
form the Life Insurance Corporation of India established under the Life Insurance
Corporation of India Act, 1956 or any other prescribed insurers :
Provided that different dates may be appointed for different establishments or class
of establishments or for different area.
2) the appropriate Government may, subject to such conditions as may be prescribed,
exempt every employer who has already established an approved gratuity fund in
respect of his employees and who desires to continue such arrangement, and every
employer employing five hundred or more persons who establishes an approved
gratuity fund in the manner prescribed from the provision of sub-section (1)
13. Protection of gratuity — No gratuity payable under this act and no gratuity payable
to employee employed in any establishment, factory, nine, oilfield, plantation railway
company or shop in an exempted category (Sec 5 ) shall be liable to attachment in
execution of any decree or order of any civil, revenue or criminal court.