Labour Law II

1. Explain the objectives of equal remuneration act.

The Doctrine of ‘equal pay for equal work’ is not a fundamental right but a Constitutional right. Equal
remuneration for men and women is the right of an employee without any qualification. The Act of
Equal Remuneration, 1976 was enacted to comply with the provisions of Directive Principle of State
Policy (DPDP) under Article 39. The Act, being a beneficial legislation, ensures adequate payment or
remuneration to be made irrespective of the physical strength of employee and removing the scope
of social and economic injustice merely on the ground of sex, thereby working to establish a just
society in the country.

1. Equal pay for equal work

2. No discrimination to be made while recruiting men and women
3. To pay equal remuneration to men and women and workers
4. Penalty for violation
5. Maintenance of register
6. Equality of work
7. Increasing opportunity to women
8. Government interference
9. The Act is applies to the whole of India.
10. Restricting the employer to create unequal

Equal pay for equal work

No employer shall pay to any worker employed by him remuneration at rates less favourable than
those at which remuneration is paid by him to the workers of the opposite sex for performing the
same work or work of similar nature.

No discrimination to be made while recruiting men and women

No employer shall make any discrimination against women while making recruitment for the same
work or work of a similar nature.

To pay equal remuneration to men and women and workers.

Penalty

If any employer (a) makes any recruitment in contravention of the provisions of the Act, or (b) makes
any payment of remuneration at unequal rates to men and women workers, for the same work or
work of a similar nature, or (c) makes any discrimination between men and women workers in
contravention of the provisions of the Act, he would be punished with fine upto Rs. 10000.00
{Section 10}

Maintenance of register

Every employer shall maintain in the prescribed form a register in relation to the workers employed
by him.

Equality of work

The equality of work is not based on the designation or the nature of work alone. There are several
other factors, which are equally relevant. They are qualifications, responsibilities, reliabilities,
experience, confidentiality, functional need and requirements commensurate with the position in
the hierarchy.

Increasing opportunity to women.

Government interference

The Ministry of Labour and The Central Advisory Committee are responsible for enforcing this Act.

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Explain the powers of appropriate government to appoint authorities for hearing and deciding
claims and complaints, under equal remuneration act 1976.

Section 7. Power of appropriate Government to appoint authorities for hearing and deciding claims
and complaints. --

(1) The appropriate Government may, by notification, appoint such officers, not below the rank of a
Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding—

(a) Complaints with regard to the contravention of any provision of this Act;

(b) claims arising out of non-payment of wages at equal rates to men and women workers for
the same work or work of a similar nature, and may, by the same or subsequent notification, define
the local limits within which each, such authority shall exercise its jurisdiction.

(2) Every complaint or claim referred to in sub-section (1) shall be made in such manner as may be
prescribed.

(3) If any question arises as to whether two or more works are of the same nature or of a similar
nature, it shall be decided by the authority appointed under sub-section (1).

(4) Where a complaint or claim is made to the authority appointed under sub-section (1) it may,
after giving the applicant and the employer an opportunity of being heard, and after such inquiry as
it may consider necessary, direct, —

(i) in the case of a claim arising out of a non-payment of wages at equal rates to men and women
workers for the same work or work of a similar nature, that payment be made to the worker of the
amount by which the wages payable to him exceed the amount actually paid;

(ii) in the case of complaint, that adequate steps be taken by the employer so as to ensure that
there is no contravention of any provision of this Act.

(5) Every authority appointed under sub-section (1) shall have all the powers of a Civil Court under
the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing
the attendance of witnesses and compelling the production of documents, and every such authority
shall be deemed to be a Civil Court for all the purposes of Section 195 and Chapter XXVI of the Code
of Criminal Procedure, 1973 (2 of 1974).

(6) Any employer or worker aggrieved by any order made by an authority appointed under sub-
section (1), on a complaint or claim may, within thirty days from the date of the order, prefer an
appeal to such authority as the appropriate Government may, by notification, specify in this behalf,
and that authority may, after hearing the appeal, confirm, modify or reverse the order appealed
against and no further appeal shall lie against the order made by such authority.
(7) The authority referred to in sub-section (6) may, if it is satisfied that the appellant was prevented
by sufficient cause from preferring the appeal within the period specified in sub-section (6), allow
the appeal to be preferred within a further period of thirty days but not thereafter.

(8) The provisions of sub-section (1) of Section 33-C of the Industrial Disputes Act, 1947 (14 of 1947),
shall apply for the recovery of monies due from an employer arising out of decision of an authority
appointed under this section.

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2. Write a short note on duties of the district magistrate and vigilance committees under
bonded labour system (abolition) act 1976

Bonded Labour System (Abolition) Act, 1976

District Magistrate

Section 11. Duty of District Magistrate and other officers to ensure credit.—The District Magistrate
authorised by the State Government under section 10 and the officer specified by the District
Magistrate under that section shall, as far as practicable, try to promote the welfare of the freed
bonded labourer by securing and protecting the economic interests of such bonded labourer so th

Section 12. Duty of district magistrate and officers authorised by him

It shall be the duty of every District Magistrate and every officer specified by him under Section 10 to
inquire whether, after the commencement of this Act, any bonded labour system or any other form
of forced labour is being enforced by, or on behalf of, any person resident within the local limits of
his jurisdiction and if, as a result of such inquiry, any person is found to be enforcing the bonded
labour system or any other system of forced labour, he shall forthwith take such action as may be
necessary to eradicate of such forced labour.

Comment: whenever it is shown that a labourer is made to provide forced labour, the Court would
raise a presumption that he is required to do so in consideration of an advance or other economic
consideration received by him and he is therefore a bonded labourer. This presumption may be
rebutted by the employer and also by the State Government if it so chooses but unless and until
satisfactory material is produced for rebutting this presumption, the Court must proceed on the
basis that the labourer is a bonded labourer entitled to the benefit of the provisions of the Act.
Bandhua Mukti Morcha , Petitioner v. Union of India and others, Respondents.

Section 14 of Bonded Labour System (Abolition) Act, 1976

Functions of Vigilance Committees.-

(1) The functions of each Vigilance Committee shall be,--

(a) to advise the District Magistrate or any officer authorized by him as to the efforts made,
and action taken, to ensure that the provisions of this Act or of any rule made there under are
properly implemented;

(b) To provide for the economic and social rehabilitation of the freed bonded labourers;

(c) To co-ordinate the functions of rural banks and co-operative societies with a view to canalizing
adequate credit to the freed bonded labourer;

(d) To keep an eye on the number of offences of which cognizance has been taken under this Act;
(e) To make a survey as to whether there is any offence of which cognizance ought to be taken
under this Act;

(f) To defend any suit instituted against a freed bonded labourer or a member of his family or
any other person dependent on him for the recovery of the whole or part of any bonded debt or
any other debt which is claimed by such person to be bonded debt.

(2) A Vigilance Committee may authorize one of its members to defend a suit against a freed
bonded labourer and the member so authorized shall be deemed, for the purpose of such suit, to
be the authorized agent of the freed bonded labourer.

Section 13 - Vigilance Committees – Formation –Members- details

(1) Every State Government shall, by notification in the Official Gazette, constitute such number of
Vigilance Committees in each district and each Sub-Division as it may think fit.

(2) Each Vigilance Committee, constituted for a district, shall consist of the following members,
namely:--

(a) the District Magistrate, or a person nominated by him, who shall be the Chairman;

(b) three persons belonging to the Scheduled Castes or Scheduled Tribes and residing in the
district, to be nominated by the District Magistrate;

(c) two social workers, resident in the district, to be nominated by the District Magistrate;

(d) not more than three persons to represent the official or non-official agencies in the district
connected with rural development, to be nominated by the State Government;

(e) One person to represent the financial and credit institutions in the district, to be nominated by
the District Magistrate.

(3) Each Vigilance Committee, constituted for a Sub-Division, shall consist of the following
members, namely:--

(a) the Sub-Divisional Magistrate, or a person nominated by him, who shall be the Chairman;

(b) three persons belonging to the Scheduled Castes or Scheduled Tribes and residing in the Sub-
Division, to be nominated by the Sub-Divisional Magistrate;

(c) two social workers, resident in the Sub-Division, to be nominated by the Sub-Divisional
Magistrate;

(d) not more than three persons to represent the official or non-official agencies in the Sub-
Division connected with rural development to be nominated by the District Magistrate;

(e) one person to represent the financial and credit institutions in the Sub-Division, to be
nominated by the Sub-Divisional Magistrate;

(f) One officer specified under section 10 and functioning in the Sub-Division

(4) Each Vigilance Committee shall regulate its own procedure and secretarial assistance, as may
be necessary, shall be provided by;

(a) the District Magistrate, in the case of a Vigilance Committee constituted for the district;
(b) the Sub-Divisional Magistrate, in the case of a Vigilance Committee constituted for the Sub-
Division.

(5) No proceeding of a Vigilance Committee shall be invalid merely by reason of any defect in the
constitution, or in the proceedings, of the Vigilance Committee.

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Explain the salient features of Bonded labour system (abolition) Act, 1976 with the help of decided
cases.

Salient Features of the Act

The Act provides several safeguards against the system, to protect the bonded labour from
exploitation. Some of these safeguards are as follows:

1. The bonded labour stand discharged from every obligation to provide any form of bonded
labour.
2. The Act yielded every agreement/ custom void wherein bonded labour existed.
3. The Act freed every property which was mortgaged visvis recovery for bonded debt from its
commencement.
4. The Act also freed any person who was detained in civil prison in pursuance of a bonded debt.
5. As per the Act, once a bonded labour is freed, he cannot be evicted from the homestead.
6. The Act has made the offence of practising Bonded Labour punishable, with imprisonment of up
to 3 years and a fine up to two thousand rupees for any person compelling another individual to
engage in bonded labour.
7. Offences under this Act are cognizable as well as bailable.

The Act is a comprehensive piece of legislation which not only defines the bonded labour system and
abolishes it but also provides for extinguishment of repayment of bonded debt. An attempt has been
made below to give the salient features of the Act:

Definition of the Bonded Labour System

The Bonded Labour System, inter alia, means that if persons belonging to any particular caste or
community are forced or partially forced to work for a creditor under-9 agreement either without
wages ar for nominal wages which are less than the prescribed minimum wages, they would come
under the definition of the "Bonded Labour System." Sections IV and V of the Act deal with tk
abolition of the bonded labour system. There are two important aspects of this abolition. It provides
that on the commencement of this Act, the bonded labour system shall stand abolished and every
bonded labourer stands free and discharged from any obligation rendered to any bonded labourer.

In a way, this Act has taken care that all past and present agreements (till the commencement of the
Act) stand abolished. This Act also provides that in future after the commencement of the Act no
person shall (a) make any advance under or in pursuance of the bonded labour system, or (b)
compel any person to render any bonded labour. It was also mentioned in the Act that any custom
or tradition or any contract, agreement by virtue of which any person is required td do any work
shall be illegallor inoperative.

Extinguishment of Liability to Repay the Bonded Debt

Under this section detailed provision ib made which abolish every obligation of a bonded labour to
repay any bonded debt and also abolish future liability of repaying a bonded debt. There is also a
provision that no suit or other proceedings shall be instituted in any civil court for the recovery of
any bonded debt, every attachment made before the commencement of the Act for the recovery of
any bonded debt shall stand vacated and such movable property shall be restored to the bonded
labourer. The Act specifically provides that if a restoration of the possession of any property referred
to above is not made within 13 days of the commencement of this Act, the aggrieved person may
apply to the prescribed authority for the restoration of the possession of the property.

Another important feature of the Act is that no person who has been freed and discharged under
this Act, shall be evicted from any homestead or other residential premises which he was occupying
immediately before the commencement of this Act as part of the consideration for the bonded
labourer.

Implementing Authorities

The Act has made the State Government responsible for the implementation of the provisions of this
Act. The Act has specifically charged the District Magistrates or Sub-Divisional Magistrates with these
duties. The Act also specified the state governments to confer such powers and impose such duties
on District Magistrates as may be necessary to ensure that the provisions of this Act are propkrly
carried out. The District Magistrate shall, as far as possible try to promote the welfare of the fred
bonded labourers by securing and protecting their economic interests so ffiat they may not have any
occasion or reason to contract any further debt.

This section also enjoins on the District Magistrate or any officer specified by him to enquire
whether the bonded labour system is being enforced and if any person is found to be enforcing the
bonded labour system, he shall take such action as may be necessary to eradicate the enforcement
of such forced labour. This Act also provides that the state government shall constitute Vigilance
each district and sub-division for the implementation of the Act. The vigilance Committee both at
the district and sub-division levels shall comprise of official and non-official members.

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Explain the provisions to prohibit Bonded labour system in India.

Statutory Safeguards against Bonded Labour

The Bonded Labour System (Abolition) Act (hereinafter referred as "the act", 1976 provided various
safeguards against bonded labour. Some of them are enumerated below:

1. Under Section 4 of the act, the primary relief that was awarded to the bonded labourers
with the commencement of the act was that the bonded labour stood discharged from any
sort of obligation to provide bonded labour.
2. Under Section 5 of the act, any custom/agreement whereby bonded labour existed was
rendered void and inoperative.
3. Prohibition was casted on institution of any suit before any civil court vis-à-vis recovery of
bonded debt.
4. "Every decree or order for the recovery of bonded debt, passed before the commencement
of this Act and not fully satisfied before such commencement, shall be deemed, on such
commencement, to have been fully satisfied."8
5. Under Section 7 of the act, any property which is under mortgage vis-à-vis bonded debt shall
stand freed on commencement of the act.
6. Any person detained in civil prison in pursuance of the bonded debt shall be freed as per the
provisions of the act.
 7. Under Section 8 of the act, a bonded labour who has been freed shall not be evicted from
homestead.

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Explain the liability to repay bonded debt to stand extinguished.

Bonded Labour System (Abolition) Act, 1976

Sec – 6 Liability To Repay Bonded Debt To Stand Extinguished. –

(1) On the commencement of this Act, every obligation of a bonded laborer to repay any bonded
debt, or such part of any bonded debt unsatisfied immediately before such commencement, shall be
deemed to have been extinguished.

(2) After the commencement of this Act, no suit or other proceedings shall lie in any civil or before
any other authority for the recovery of any bonded debt or any part thereof.

(3) Every decree or order for the recovery of bonded debt, passed before the commencement of this
Act and not fully satisfied before such commencement, shall be deemed, on such commencement,
to have been fully satisfied.

(4) Every attachment made before the commencement of this Act, for the recovery of any bonded
debt, shall, on such commencement, stand vacated; and, where, in pursuance of such attachment,
any movable property of the bonded laborer was seized and removed from his custody and kept in
the custody of any court or other authority pending sale thereof, such movable property shall be
restored, as soon as may be practicable after such commencement, to the possession of the bonded
laborer.

(5) Where, before the commencement of this Act, possession of any property belonging to a bonded
laborer or a member of his family or other dependent was forcibly taken over by any creditor for the
recovery of any bonded debt, such property shall be restored, as soon as may be practicable after
such commencement, to the possession of the person from whom it was seized.

(6) If restoration of the possession of any property referred to in sub-section (4) or sub-section (5) is
not made within thirty days from the commencement of this Act, the aggrieved person may, within
such time as may be prescribed, apply to the prescribed authority for the restoration of the
possession of such property and the prescribed authority may, after giving the creditor a reasonable
opportunity of being heard, direct the creditor to restore to the applicant the possession of the
concerned property within such time as may be specified in the order.

(7) An order made by any prescribed authority, under sub-section (6), shall be deemed to be an
order made by a civil court and may be executed by the court of the lowest pecuniary jurisdiction
within the local of whose jurisdiction the creditor voluntarily resides or carries on business or
personally works for gain.

(8) For the avoidance of doubts, it is hereby declared, that where any attached property was sold
before the commencement of this Act, in execution of a decree or order for the recovery of a
bonded debt, such sale shall not be affected by any provision of this Act.

Provided that the bonded laborer, or an agent authorized by him in this behalf, may, at any time
within five years from such commencement, apply to have the sale set aside on his depositing in
court, for payment to the decree-holder, the amount specified in the proclamation of sale, for the
recovery of which the sale was ordered, less any amount, as well as mesne profits, which may, since
the date of such proclamation of sale, have been received by the decree-holder.

(9) Where any suit or proceeding, for the enforcement of any obligation under the bonded labor
system, including a suit or proceeding for the recovery of any advance made to a bonded laborer, is
pending at the commencement of this Act, such suit or other proceeding shall, on such
commencement stand dismissed.

(10) On the commencement of this Act, every bonded laborer who has been detained in civil prison,
whether before or after judgment, shall be released from detention forthwith.

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Explain the object, purpose and concept of bonded labour (abolition) Act 1976

1. The Act came into force on 25 October, 1975 and extends to whole of India and is
implemented by respective states according to their discretion. It comprises of 10 sections.
2. It has been established with an objective to provide for the abolition of bonded labour
system and prevent economic and physical exploitation of the weaker sections.
3. The Act has overriding effect and anything inconsistent with this Act does not have enforcing
effect and shall be abolished.
4. According to Sections 4 and 5, bonded labour is strictly abolished and any custom or
agreement related to the same has been made void and inoperative.
5. Every labourer is free from his liability to pay debt and is discharged of all his obligations to
render bonded labour. No person can institute any proceeding in any court to recovery of
debt. No creditor can accept payment against extinguished debt.
6. If the creditor took any property under the system, the same has to be restored to the
possessor from whom it was seized. Property of the bonded labourer to be freed from
mortgage, etc.
7. Every bonded labour who has been detained under the system has to be released.
8. Under Section 10 of the Act, the state government have been conferred with powers to
impose duty on magistrate of the district to ensure the enforcement of the Act. The Act
provides for an institutional mechanism in the form of Vigilance Committees which guide the
District Magistrate.

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3. Define the term of minimum wage and explain the procedure for fixation of minimum wages
rates of wages laid down under minimum wages act 1948.

Minimum wages have been defined as the minimum amount of remuneration that an employer is
required to pay wage earners for the work performed during a given period, which cannot be
reduced by collective agreement or an individual contract.

The concept of minimum wages in India was brought in by Mr K. G. R. Chaudhary in 1920. After the
International Labour Conference, 1928, the machinery of wage-fixing was brought into actual policy
formulation. The bill regarding the same was brought in 1946 and by the year 1948, the bill was
enforced and we had saviour rights for all the blue-collar workers. Blue-Collar Workers refer to those
people whose profession requires them to perform manual labour.
The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just
and equitable share of the fruits of progress to all, and a minimum living wage to all who are
employed and in need of such protection. Minimum wages can also be one element of a policy to
overcome poverty and reduce inequality, including those between men and women, by promoting
the right to equal remuneration for work of equal value.

Wages Act

According to Section 3 of the Minimum wages act, it is the responsibility of the

appropriate government to set a specific yardstick.

Apart from fixing the minimum rate, the appropriate government shall also conduct periodic reviews
within a span of five years of fixing such rates and revise the same if felt necessary.

However, according to section 3(1A), the appropriate government shall not take any such initiative in
regards to scheduled employment having an employee count of less than 1000.

Procedure for Fixing and Revising Minimum Wage

Fixing Of Minimum Rates u/s 3(2)

The appropriate government can fix

 A minimum piece rate

 Minimum time rate

 Overtime rate which is the minimum time or piece rate as a substitution of some other rate
which would have been otherwise applied for overtime work performed by employees.

 Guaranteed time rate which is the minimum remuneration rate applicable to employees who
had been working on piece rate till now if he is again employed on time rate.
While revising or freshly fixing the wage rate under the Minimum wages act

 Varying rates of minimum wage shall be fixed for

o Varying classes of work under the same scheduled employment

o Different scheduled employment

o Various localities and

o Apprentices, children, adolescents, and adults

 Minimum wage rate can either be fixed by one or more of these wage periods
o Month

o Day

o Hour

o Any other larger wage-period which is deemed appropriate

 Read more about Penalty for Offences under the Act (Section 20) here

Section 4 of the Minimum wages act states that the appropriate government can either fix or revise the
wage rate of scheduled employments.

However, the following parts shall come under the purview of the appropriate government in such a
case:

 Basic wage rate and special allowance which should be in harmony with the cost of living index
of its workers.

 Basic wage rate either along with or without the cost of living allowance as well as the
authorized cash value of concessions pertaining to the supply of essential commodities at
subsidized rates.

 A comprehensive wage rate comprising of the cash value of the concessions, cost of living
allowance and the basic rate.
Alternatively, a competent authority can calculate the cash value of concessions and cost of living
allowance. This has to be done after appropriate intervals and according to the directions laid down by
the appropriate government.

Let us understand more about Deductions from Wages here in detail

Section 5 of Minimum Wages Act – Procedure To Fix Or Revise Minimum Wages

 When the minimum wage rate of scheduled employment is fixed, or revised for the very first
time under this act,

o As many committees and sub-committees can be appointed as necessary.

o A notification containing the relevant proposals can be published in the official gazette
containing information related to people who might be affected by the same. A date also
needs to be specified within a span of two months from the date of notification within
which the proposals should be considered.
 The appropriate government can issue a notification in the Official Gazette after considering the
advice of the committee to fix or revise the minimum wage rate.

Procedure for fixing and revising minimum wages

Section 5 of the Act gives the procedure for fixing and revising the minimum wages. The appropriate
government shall appoint committees and subcommittees that may be able to advise on the fixation
of minimum wages. The appropriate government is also supposed to publish the minimum wage
fixation in the newspapers so as to inform the stakeholders regarding the changes implemented. This
publication has to be done at least before two months of the implementation. The stakeholders may
also raise issues if any after the publication. The ascertainment of the minimum wage is then
published in the Official Gazette. There may also be consultations regarding the revision of wages,
with the Advisory Board. One may wonder, what constitutes an Advisory Board. Let us know what is it
and its constitution.
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4. What is minimum wages? What are the components? Explain

The rise in industrial jurisprudence has eliminated the idea of master and servant, where the boss
and the contractor principle arose, where the former could appoint the latter but could no longer
expel it. An employee’s benefit is now secured in many ways by Legislation.

Components for Fixing Of Minimum Wage

In many cases, total wages or earnings include different components, such as:

1. basic pay
2. annual bonuses
3. tips
4. in-kind benefits
5. productivity and performance pay
6. Allowances and premiums for non-standard work hours or dangerous work.

The government is empowered to fix the minimum wage on the components of:

 Cost of Living Index - the government may fix:

1. Minimum time rate which is the time factor on which the minimum wage can be fixed.
2. Minimum piece rate which allows the minimum wage to be fixed based on the pieces of
items manufactured by the industry.
3. Guaranteed time rate which is a combination of piece rate and time rate with reference
to time work basis and pieces of items manufactured by the industry on which the
minimum wage is based.
4. Overtime rate which is minimum wage fixed based on overtime work performed by
employees, irrespective of the time work or piece rate.

 The Different minimum wage for various industrial areas - Section 3 (3) (a) of the Act
provides that different minimum rates may be fixed for different:

1. Scheduled employment
2. classes of work in a schedule of employment

 Locations, Adults, children, adolescent and apprentices have different rates of wages.
Section 3 of the Minimum Wages Act lays down wage rates on the basis of the hour, day,
month or any other duration of pay that may be prescribed. On the condition that wages are
set by the month or by any period prescribed, the manner in which wages are measured
shall be indicated on the basis of the period. In the case of wages which are set on the basis
of the duration indicated in Section 4 of the Payment of Wages Act of 1936, the minimum
wages shall be determined in accordance with the provisions of the Act.
 The Minimum rate of wages on the basis of a basic rate of wages featured in other
allowances - Section 4 provides that any minimum rate of wages revised or fixed based on
the scheduled employments under Section 3 may contain:

1. A special allowance and a standard salary rate, known as the 'living allowance cost.' The
living allowance cost rate shall be assessed on a periodic basis in a manner directed by
the appropriate government. The fixed wage is equal to the existing cost of living in the
country and to the number of employees.
 2. A basic rate of wages that is not only limited to the cost of living allowance, cash value
based on prices of commodities.

 An all-inclusive rate that is based on the cost of living allowance, and the value of cash.
The cost of living allowance and cash value shall be determined by the approved body in
respect of the basic commodities supplied. The estimate shall be carried out on the basis of
the directives of the relevant government by the competent agency.

Objectives of the Minimum Wages Act

 To ensure that the employee can have the basic

 To ensure that the employee can have the basic physical needs, good health and a level of
comfort.
 To ensure a secure and adequate living wage for all labourers in the interest of the public.
 To ensure that the employee has enough to provide for his family.
 Ensuring a decent life standard that pertains to the social comfort of the employee.

Requirements for Review and Fixation Of Minimum Wage

The requirements for the review and fixation of a minimum wage is under Section 5 of the 1948
minimum wage Act.

The rule provides that:

Committees and sub-committees shall be appointed by the appropriate government as it deems fit;
to inform it on the possible review and fixation of the minimum wage rate.

The government shall notify the persons concerned by making a publication in one of the national
dailies and specify a date not later than a period of two months from the publication date before the
commencement of the hearing on the matter.

After the government has taken into account the feedback of the representatives of the persons
concerned or the advice of the committee, the minimum rate shall be reviewed or fixed by means of
publication in the official news media on the basis of each schedule of employment. The control of a
fixation or review shall not exceed three months from the date on which the fixation or review was
written.

The relevant government shall operate in accordance with the minimum wages Advisory Board
when assessing the pay. The analysis is limited to the jobs that are on the timetable. Section 27 of
the Act, however, empowers the required government to add some jobs to the timetable.

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5. Explain the concept of bonus. How it is calculated?

Bonus is a reward that is paid to an employee for his good work towards the organisation. The basic
objective to give bonus is to share the profit earned by the organisation amongst the employees and
staff members. In India there is a principle law relating to this procedure of payment of bonus to the
employees and that principle law is named as Payment of Bonus Act, 1965.
The Payment of Bonus Act applies to every factory and establishment employing not less than 20
persons on any day during the accounting year. The establishments covered under the Act shall
continue to pay bonus even if the number of employees fall below 20 subsequently.

The Payment of Bonus Act of 1965 imposes a contractual obligation on employers to pay bonuses to
employees in proportion to the resources available for the establishment's smooth functioning. The
Act's purpose was to give workers a say in the company's profits and to enable them to earn slightly
more than the minimum wage based on their performance.

Calculation of Bonus

As per the amendment on the Payment of Bonus Bill passed in 2015, if the gross earning of the
employee is below Rs. 21,000, employers are liable to pay bonuses. The bonus will be calculated as
follows:

If salary is equal to or less than Rs. 7,000, then the bonus will be calculated on the actual amount by
using the formula: Bonus= Salary x 8.33 / 100

If salary is more than Rs. 7,000, then the bonus will be calculated on Rs. 7,000 by using the formula:
Bonus= 7,000 x 8.33 /100

Note: Salary means: Basic Salary + Dearness Allowance

Examples:

1. If A’s Salary (Basic + DA) is Rs. 6,000, then bonus payable will be: 6,000 x 8.33 / 100= Rs. 500 per
month (Rs. 6,000 per year)

2. If B’s Salary (Basic + DA) is Rs. 7,500, then bonus payable will be: 7,000 x 8.33 / 100= Rs. 583 per
month (Rs. 6,996 per year)

The Act does not apply to the following classes of employees:

Employees employed in:

1. Life Insurance Corporation of India

2. Industry carried on or under the authority of any department of Central Government or a
State Government or a Local Authority.
3. Indian Red Cross Society or any other institution of like nature including its branches;
4. Universities and other educational institutions;
5. Hospital, Chambers of Commerce and Social Welfare Institutions established not for
purposes of profits; employed through contractors on building operations;
6. Reserve Bank of India;
7. Industrial Finance Corporation of India, Deposit Insurance Corporation and other financial
corporations being set up financially assisted by the Government, and Unit Trust of India,
Agricultural Refinance Corporation, and Industrial Bank of India,
8. Seamen as defined in Sec. 3(42) of the Merchant Shipping Act, 1958;
9. Inland Water Transport establishment. (Section 32).

Forfeiture of Bonus:

An employee who is dismissed from service on the grounds of fraud, riotous or violent behaviour at
the premises of the establishment or for the theft, misappropriation or sabotage of any of the
property of the establishment as mentioned in the Act. This shall not only disqualify him from
receiving the bonus for the accounting year in which he was dismissed but also for the past years
which were remained unpaid to him.

Eligibility for Bonus under the Act

The payment of bonus is a statutory right under the act and According to the Section 8 of the act,
any employer who has worked for a minimum of 30 days in an accounting year, shall be eligible for a
bonus.

In East Asiatic Co. Ltd. Vs Industrial Tribunal 3, it was held that a retrenched employee is eligible for
bonus if they worked for a min of 30 days and have a salary of 10,000 pm in a year.

In the case of J. K. Ginning & Pressing Factory v. Second Labour Court, Akola & Others 4, a factory
employed ten seasonal employees, and the issue of their bonus eligibility arose. The Bombay High
Court ruled that the Act does not exclude such seasonal workers from employment; the only
criterion for eligibility is that they meet the Section 8 requirements. As a result, even seasonal
employees were deemed to be entitled to bonus payments under the Act.

Conclusion

The Payment of Bonus Act of 1965 aims to legalise the practise of various establishments paying
bonuses. It provides a mechanism for calculating bonus based on profit and performance. It allows
workers to make more money than the minimum wage or salary. This Act establishes various
procedures for different types of businesses, such as banks and government agencies, as well as
businesses that are not corporations or firms. This Act also establishes a rigorous redress process in
addition to the procedure.

------------------------------------------------------------ ---------------------------------- -------------------------------

6. The gratuity of a workman was not paid by his employee on the ground he has caused great
loss to the management due to his negligent activities can the workman recover his gratuity
amount? Advice.

The Court noted that sec. 4 of Payment of Gratuity Act prescribes that gratuity would be payable to
every employee on termination of his employment if the employee has rendered continuous service
for not less than five years upon superannuation, retirement or resignation or due to death or
disablement due to accident or disease.

It also noted sec. 4(6)(a) of the Act which provides that the gratuity of an employee, whose services
may have been terminated for the reasons as specified therein, can be forfeited to the extent of
damage or loss so caused.

Accordingly, the Court observed: "Thus, any employer can forfeit the gratuity of an employee if the
employee is terminated for any act or omission or negligence causing any damage or loss to the
property belonging to the employer. The forfeiture can only be to the extent of the damage or loss
caused, and not beyond that."

Section 4(6) provides as under:-

“Notwithstanding anything contained in sub-section (1)-

(a) The gratuity of an employee, whose services have been terminated for any act, willful omission
or negligence causing any damage or loss to, or destruction of, property belonging to the employer,
shall be forfeited to the extent of the damage or loss so caused.
(b) The gratuity payable to an employee may be wholly or partially forfeited –

(i) If the services of such employee have been terminated for his riotous or disorderly conduct or any
other act of violence on his part, or

(ii) If the services of such employee have been terminated for any act which constitutes an offence
involving moral turpitude, provided that such offence is committed by him in the course of his
employment.”

Shri Surendra vs Syndicate Bank on 13 February, 2019

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7. Elucidate the objectives of the child labour (prohibition and regulation) Act 1986

Meaning of Child Labour "Child labour' is defined as any work within or outside the family that
involves time, energy, commitment, which affects the ability of a child to participate in leisure, play
and educational activities. Such work impairs the health and development of a child. According to
the International Labour Organization, "child labour includes children prematurely leading adult
lives, working long hours for low wages under conditions damaging to their health and to their
physical and mental development." They are often separated from their families and deprived of
meaningful education and training opportunities that would offer them a better future

1. Ban the employment of children, that is, those who have not completed their fourteenth
year of age, in specified occupations and processes
2. Lay down a procedure to decide modifications to the Schedule of banned occupations and
processes
3. Regulate the conditions of work of children in employments where they are not prohibited
from working
4. Lay down enhanced penalties for employment of children in violation of the provisions of
the Act, and other Acts which forbid the employment of children
5. To obtain uniformity in the definition of child in all the related laws
6. To empower the Central Government to constitute Child Labour Technical Advisory
Committee to advise the Central Government for the purpose of addition of occupation and
processes to the Schedule appended to the Act.
7. Prohibits/bans the employment of any person who has not completed his fourteenth year of
age in occupations and processes enlisted in Part A and B of the Schedule of the Act.
8. Lays down enhanced penalties for employment of children in violation of the provisions of
the Act and other Acts Section 14 of the Act provides for punishment up to 1 year (minimum
being three months) or with fine up to Rs. 20,000/- (minimum being ten thousand) or with
both, to one who employs or permits any child to work in contravention of provisions in
Section 3 Children employed in occupations and processes, not banned by the Act are
regulated by the following provisions:
9. A child shall not be required to work for more than six hours a day which shall be inclusive of
his/her half an hour break.
10. No child shall be permitted or required to work between 7 p.m. and 8 a.m.
11. No child shall be required or permitted to work overtime.
12. Every child shall get a weekly off. There is an obligation on the part of the employer to
furnish information to the inspector regarding the employment of children. It is mandatory
for the employer to maintain a register on this matter.
---------------------------------------------------------------------------- --------------------------------------------------------

8. Write the essential features of contract labour (regulation and abolition) act 1970

The term ‘contract labour’ under Contract Labour (Regulation and Abolition) Act, 1970 means a
workman who is hired in or in connection with the work of an establishment by or through a
contractor. It is pertinent to note that the word, ‘hire’, as used in the said Act has a significant
connotation and it is not equivalent to the employee-employer relationship.

1. Short title, extent, commencement and application

2. Appropriate Government
3. Contract Labour
4. Principlal Employer
5. Contractor
6. Wages
7. Workman
8. Central Advisory Board
9. State Advisory Board
10. Registration of certain establishments
11. Revocation of registration
12. Effect of non-registration
13. Licensing of contractors
14. Prohibition of employment of contract labour
15. Appeal
16. Obstructions

Short title, extent, commencement and application

(a) To every establishment in which twenty or more workmen are employed or 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:

Provided that the appropriate government may, after giving not less than two months' notice of its
intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any
establishment or contractor employing such number of workmen less than twenty as may be
specified in the notification.

(5) (a) It shall not apply to establishments in which work only of an intermittent or casual nature is
performed.

(b) If a question arises whether work performed in an establishment is of an intermittent or casual

nature, the appropriate government shall decide the question after consultation with the Central
Board or, as the case may be, as State Board, and its decision shall be final.

Appropriate Government

(i) In relation to an establishment in respect of which the appropriate Government under the
Industrial Disputes Act, 1947 (14 of 1947), is the Central Government;

(ii) In relation to any other establishment, the Government of the State in which that other
establishment is situated;
Contract Labour

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 contractor,
with or without the knowledge of the principal employer.

Principal Employer

(i) In relation to any office or department of the government or a local authority, the head of that
office or department or such other officer as the government or the local authority; as the case may
be, may specify in this behalf.

(ii) In a factory, the owner or occupier of the factory and where a person has been named as the
manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named.

(iii) In a mine, the owner or agent of the mine and where a person has been named as the manager
of the mine, the person so named,

(iv) In any other establishment, any person responsible for the supervision and control of the
establishment.

Explanation.- For the purpose of sub-clause (iii) of this clause, the expressions "mine", "owner" and
"agent" shall have the meanings respectively assigned to them in clause (j) clause (l) and clause (c) of
sub-section (1) of section 2 of the Mine Act, 1952 (35 of 1952);

Contractor

The Act defines Contractor as a person who undertakes to 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 work of the establishment.

In other words, Contractor is the person supplying contract labour to an establishment undertaking
to produce a given result for it. It is noteworthy that sub-Contractors or ‘piece wagers’ also qualify as
Contractors who need to apply for the registration of the establishment and license.

Moreover, the definition of Contractor is given under Section 2 (1) (c) of The Contract Labour
(Regulation and Abolition) Act, 1970

Wages

Wages shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act,
1936 (4 of 1936);

Workman

Any person employed in or in connection with the work of any establishment to do any skilled, semi-
skilled or unskilled manual, supervisory, technical or clerical work for hire or reward, whether the
terms of employment be express or implied, but does not include any such person-

(A) Who is employed mainly in a managerial or administrative capacity; or

(B) Who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per
mensem or exercises, either by the nature of the duties attached to the office or by reason of the
powers vested in him, functions mainly of a managerial nature; or
(C) Who is an out-worker, that is to say, a person to whom any article and materials are given out by
or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented,
finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business
of the principal employer and the process is to be carried out either in the home of the out-worker
or in some other premises, not being premises under the control and management of the principal
employer.

Central Advisory Board

(1) The Central Government shall, as soon as may be, constitute a Board to be called the Central
Advisory Contract Labour Board (hereinafter referred to as the Central Board) to advise the Central
Government on such matter arising out of the administration of this Act as may be referred to it and
to carry out other functions assigned to it under this Act.

(2) The Central Board shall consist of—

(a) A Chairman to be appointed by the Central Government; (b) The Chief Labour Commissioner
(Central), ex officio;

(c) Such number of members, not exceeding seventeen but not less than eleven, as the Central
Government may nominate to represent that government, the Railways, the coal industry, the
mining industry, the contractors, the workmen and any other interests which, in the opinion of the
Central Government, ought to be represented on the Central Board.

(3) The number of persons to be appointed as members from each of the categories specified in sub-
section (2), the term of office and other conditions of service of, the procedure to be followed in the
discharge of their functions by, and the manner of filling vacancies among, the members of the
Central Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be less than
the number of members nominated to represent the principal employers and the contractors.

State Advisory Board

(1) The State Government may constitute a Board to be called the State Advisory Contract Labour
Board (hereinafter referred to as the State Board) to advise the State Government on such matters
arising out of the administration of this Act as may be referred to it and to carry out other functions
assigned to it under this Act.

(2) The State board shall consist of—

(a) A Chairman to be appointed by the State Government;

(b) The Labour Commissioner, ex officio, or in his absence any other officer nominated by the State
Government in that behalf;

(c) such number of members, not exceeding eleven but not less than nine, as the State Government
may nominate to represent that government, the industry, the contractors, the workmen and any
other interests which, in the opinion of the State Government, ought to be represented on the State
Board.

(3) The number of persons to be appointed as members from each of the categories specified in sub-
section (2), the term of office and other conditions of service of, the procedure to be followed in the
discharge of their functions by, and the manner of filling vacancies, among, the members of the
State Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be less than
the number of members nominated to represent the principal employers and the contractors.

Registration of certain establishments

(1) Every principal employer of an establishment to which this Act applies shall, within such period as
the appropriate government may, by notification in the Official Gazette, fix in this behalf with
respect to establishment generally or with respect to any class of them, make an application to the
registering officer in the prescribed manner for registration of the establishment:

[Provided that the registering officer may entertain any such application for registration after expiry
of the period fixed in this behalf, if the registering officer is satisfied that the applicant was
prevented by sufficient cause from making the application in time.

(2) If the application for registration is complete in all respects, the registering officer shall register
the establishment and issue to the principal employer of the establishment a certificate of
registration containing such particulars as may be prescribed.

Revocation of registration

If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise,
that the registration of any establishment has been obtained by misrepresentation or suppression of
any material fact, or that for any other reason the registration has become useless or ineffective
and, therefore requires to be revoked, the registering officer may, after giving an opportunity to the
principal employer of the establishment to be heard and with the previous approval of the
appropriate government, revoke the registration.

Effect of non-registration

No principal employer of an establishment, to which this Act applies, shall—

(a) In the case of an establishment required to be registered under section 7, but which has not been
registered within the time fixed for the purpose under that section.

(b) In the case of an establishment the registration in respect of which has been revoked under
section 8,

employ contract labour in the establishment after the expiry of the period referred to in clause (a) or
after the revocation of registration referred to in clause (b), as the case may be.

Licensing of contractors

(1) With effect from such date as the appropriate government may, by notification in the Official
Gazette, appoint no contractor to whom this Act applies, shall undertake or execute any work
through contract labour except under and in accordance with a licence issued in that behalf by the
licensing officer.

(2) Subject to the provisions of this Act, a licence under sub-section (1) may contain such conditions
including, in particular, conditions as to hours of work, fixation of wages and other essential
amenities in respect of contract labour as the appropriate government may deem fit to impose in
accordance with the rules, if any, made under section 35 and shall be issued on payment of such
fees and on the deposit of such sum, if any, as security for the due performance of the conditions as
may be prescribed.

Prohibition of employment of contract labour

(1) Notwithstanding anything contained in this Act, the appropriate government may, after
consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in
the Official Gazette, employment of contract labour in any process, operation or other work in any
establishment.

(2) Before issuing any notification under sub-section (1) in relation to an establishment, the
appropriate government shall have regard to the conditions of work and benefits provided for the
contract labour in that establishment and other relevant factors, such as—

(a) Whether the process, operation or other work is incidental to, or necessary for the industry,
trade, business, manufacture or occupation that is carried on in the establishment;

(b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the
nature of industry, trade, business, manufacture or occupation carried on in that establishment;

(c) Whether it is done ordinarily through regular workmen in that establishment or an establishment
similar thereto;

(d) Whether it is sufficient to employ considerable number of whole-time workmen.

Explanation — if a question arises whether any process or operation or other work is of perennial
nature, the decision of the appropriate government thereon shall be final.

Appeal

(1) Any person aggrieved by an order made under section 7, section 8, section 12 or section 14 may,
within thirty days from the date on which the order is communicated to him, prefer an appeal to an
appellate officer who shall be a person nominated in this behalf by the appropriate government:

Provided that the appellate officer may entertain the appeal after the expiry of the said period of
thirty days, if he is satisfied that the appellant was prevented by sufficient cause from filing the
appeal in time.

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the
appellant an opportunity of being heard dispose of the appeal as expeditiously as possible.

Obstructions

(1) Whoever obstructs an inspector in the discharge of his duties under this Act or refuses or wilfully
neglects to afford the inspector any reasonable facility for making any inspection, examination,
inquiry or investigation authorised by or under this Act in relation to an establishment to which, or a
contractor to whom, this Act applies, shall be punishable with imprisonment for a term which may
extend to three months, or with fine which may extend to five hundred rupees, or with both.

(2) Whoever wilfully refuses to produce on the demand of an inspector any register or other
document kept in pursuance of this Act or prevents or attempts to prevent or does anything which
he has reason to believe is likely to prevent any person from appearing before or being examined by
an inspector acting in pursuance of his duties under this Act, shall be punishable with imprisonment
for a term which may extend to three months, or with a fine which may extend to five hundred
rupees, or with both.

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9. Write a note on regulation and conditions of work of children.

Children have been suffering from societal exploitation for a long time now. The increasing rate of
illiteracy, poverty, and lack of awareness in India is the main reason behind the same. However,
various social organizations have voiced their opinions time and again for bringing necessary
changes in the child labour act. These are expected to regulate the working conditions of children.

Recommendations made by various committees such as the Gurupadaswamy Committee on child

labour, the National Commission on labour and Sarat Mehta Committee led to the enactment of
Child labour (Prohibition & Regulation) Act, 1986. This child labour act brings the whole of India
under its purview.

Section 7 – Period and Hours of Work under the Child Labour Act

 Children cannot be permitted to work in any establishment for more than what has been
prescribed for that class of establishment.
 They cannot be asked or permitted to work in between 7 p.m. and 8 a.m.
 Children need to take an hours rest before starting with three more hours of work.
 The child labour act has arranged the work period in such a manner that children won’t have
to spend more than six hours in the establishment comprising of his interval for rest.
 Children are not allowed to work overtime.
 Children cannot work in an establishment on a day when he had already worked in another
establishment.

Section 8 – Weekly Holidays

Children working in an establishment can enjoy a complete day off each week.

Section 13- Health & Safety

The appropriate government may issue a notification in the official gazette for making rules
pertaining to the safety and health of children who are employed in a particular establishment.

The above-mentioned rules might cover any one or all of the following matters:

1. Disposal of effluents and waste

2. Freedom of workplace from nuisance
3. Dust and fume
4. Ventilation and temperature
5. Lighting
6. Latrine and urinals
7. Artificial humidification
8. Drinking water
9. Work either at or near any machinery in motion
10. Fencing of machinery
11. Spittoons
12. Device for cutting power supply
13. Easing of new machinery
 14. Employing children for running dangerous machines
15. Training and supervising children running dangerous machines
16. Means of access like floor and stairs
17. Self-acting machines
18. Excessive weights
19. Maintenance of buildings
20. Protection of eyes
21. Precautions on the occurrence of fire
22. Sumps, pits, and floor openings
23. Safety of buildings and machinery
24. Inflammable dust, gas etc.

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10. Write a note on the advisory boards under contract labour (regulation and abolition) act 1970

Contract Labour (Regulation & Abolition) Act, 1970

Central Advisory Board

The Central Advisory Board consists of a Chairman appointed by the Central government, the Chief
Labour Commissioner, and the Central Government may nominate eleven to seventeen members to
represent the government, railways, coal industry, mining industry, contractors, workmen and
members from any other fields which, in the opinion of the Central Government ought to be
represented on the Central Advisory Board.

Furthermore, Section 3 of the Act also states that the number of members nominated to represent
the workmen shall not be less than the number of members nominated to represent the principal
employers and the contractors.

The Section 8 of the Act, states that the Central Government must appoint a Central Advisory Board
for advising the Central & State Government. In the matters of fixing and revision of the minimum
rates of wages. Also all the other matters concerning the Minimum Wages Act, and coordinating the
work of the advisory board. Thus the Central Advisory Board should consist of the person to be
nominated by the Central Government. Representing the employers and employees. Therefore the
scheduled employment that shall be equal in number and independent persons not exceeding 1/3rd
of its total number of members, one of such independent persons shall be appointed as the
Chairman of the Board by Central Government.

State Advisory Board

Section 4 of the Contract Labour (Regulation & Abolition) Act, 1970 states the composition of the
State Advisory Board. It consists of a Chairman appointed by the state government, the Labour
Commissioner of that state and in their absence, any other officer will be appointed by the state
government and the state government may nominate nine to eleven members to represent that
government, industry, contractors, workmen and members from any other fields which, in the
opinion of the state government, ought to be represented on the State Advisory Board. However,
the number of members nominated to represent the workmen shall not be less than the number of
members nominated to represent the principal employers and the contractors.
Both Central and State Advisory Boards have the power to form committees under this Act as they
may think fit. The committees will function according to the provisions of the Act and will carry out
all the necessary duties and responsibilities.

(1) The State Government may constitute a board to be called the State

Advisory Contract Labour Board (hereinafter referred to as the State Board) to advise the State

Government on such matters arising out of the administration of this Act as may be referred to it
and to carry out other functions assigned to it under this Act.

(2) The State Board shall consist of—

(a) A Chairman to be appointed by the State Government;

(b) The Labour Commissioner, ex officio, or in his absence any other officer nominated by the State
Government in that behalf;

(c) such number of members, not exceeding eleven but not less than nine, as the State Government
may nominate to represent that Government, the industry, the contractors, the workmen and any
other interests which, in the opinion of the State Government, ought to be represented on the State
Board.

(3) The number of persons to be appointed as members from each of the categories specified in sub-
section (2), the term of office and other conditions of service of, the procedure to be followed in the
discharge of their functions by, and the manner of filling vacancies among the, members of the State

Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be less than
the number of members nominated to represent the principal employers and the contractors.

-------------------------- -------------------------------------------------------------------------------------------------

11. Define contribution. Examine the law relating to contribution by the employer and employees
under the employee’s provident fund act 1952.

Contribution is payable out of the employer’s share of PF and no contribution is payable by

employee. Employee Provident Fund EPF is one of the popular savings schemes launched under the
supervision of the Government of India. The Ministry of Labour regulates EPF schemes in India. It is
the main scheme under the Employee Provident Fund and Miscellaneous Provisions Act, 1952.
Employee Provident Fund Organisation (EPFO) manages this savings scheme.

The fund includes monetary contributions from both employer and employee. Each of them has to
contribute 12% of the employee’s basic salary (Basic + Dearness allowance) towards this fund every
month. Once an individual retires, they receive the entire contribution (of both employee and
employer) as a lump sum with interest. The rate of return earned is fixed, which is set by EPFO. Also,
the interest accrued is tax-free.

The employer is under a statutory obligation to deduct a specified percentage of the contribution
from the employee’s salary for provident fund. The employer should also contribute such
percentage for provident fund. An employee who gets more than 15,000 is eligible for getting the
provident fund.
Examine the law relating to contribution by the employer and employees under the employee’s
provident fund act 1952.

Employee Provident Fund (EPF) is a scheme in which you can create wealth throughout your working
years as an employee at a government or private organisation. This amount earns interest, and you
can use it to finance a part of post-retirement life or other goals. In this scheme, both you and your
employer make contributions towards your PF. You can claim the entire amount at the time of your
retirement or two months after changing your job. You and your employer need to transfer 10% or
12% of your basic salary to contribute towards EPF. However, if you are a woman, you only need to
contribute 8% of your basic salary for the first three years. During this period, your employer's EPF
contribution will remain 12%. For sick units or establishments with less than 20 employees, the rate
is 10% as per Employees' Provident Fund Organisation's (EPFO) guidelines. Also, as per Budget 2018,
the rate of interest applicable on EPF is 8.65%. To better understand how EPF can help you, take a
look at how you and your employer contribute to it.

Division of EPF contribution EPF contribution is divided into two parts.

Contribution by the employee

Male employees must contribute 10% or 12% of their basic salary. Female employees must
contribute 8% of their basic salary for the first three years. Thereafter it becomes, 10% or 12% of the
basic salary.

Contribution by your employer

Your employer must contribute an amount equal to 10% or 12% of your basic salary towards EPF.
For female employees, the government contribution doesn't change.

---------------------------------------------------- ----------------------------------------- ---------------------------------

12. Discuss the mode recovery of money due from the employer under the EPF act 1952.

This provisions states that is if employer to any scheme and any charges for meeting the cost of
administering the Fund paid or payable by an employer in respect of an employee employed by or
through a contractor may be recovered by such employer from the contractor, either by deduction
from any amount payable to the contractor under any contract or as a debt payable by the
contractor.

Section 8 of EPF act 1952 Mode of recovery of moneys due from employers–
any amount due –

(a) from the employer in relation to an establishment to which any Scheme or the Insurance Scheme
applies in respect of any contribution payable to the Fund or, as the case may be, the Insurance
Fund, damages recoverable under section 14B, accumulations required to be transferred under sub-
section 2 of section 15 or under sub-section 5 of section 17 or any charges payable by him under any
other provision of this Act or of any provision of the Scheme or the Insurance Scheme; or

(b) from the employer in relation to an exempted establishment in respect of any damages
recoverable under section 14B or any charges payable by him the appropriate Government under
any provision of this Act or under any of the conditions specified under section 17 or in respect of
the contribution payable by him towards the Pension Scheme under the said section 17, may, if the
amount is in arrear, be recovered in the manner specified in section 8B to 8G.

Section 8A. Recovery of moneys by employers and contractors.

(1) The amount of contribution that is to say, the employer’s contribution as well as the employee’s
contribution in pursuance of any Scheme and the employer’s contribution in pursuance of the
Insurance Scheme and any charges for meeting the cost of administering the Fund paid or payable
by an employer in respect of an employee employed by or through a contractor may be recovered
by such employer from the contractor, either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the contractor.

(2) A contractor from whom the amounts mentioned in sub-section 1 may be recovered in respect of
any employee employed by or through him, may recover from such employee the employee’s
contribution under any Scheme by deduction from the basic wages, dearness allowance and
retaining allowance if any payable to such employee.

(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the
employer’s contribution or the charges referred to in sub-section 1 from the basic wages, dearness
allowance, and retaining allowance if any payable to an employee employed by or through him or
otherwise to recover such contribution or charges from such employee.

Explanation. – In this section, the expressions “dearness allowance” and “retaining allowance” shall
have the same meanings as in section 6.

10. Protection against attachment.

(1) amount standing to the credit of any member in Fund or of any exempted employee in a
provident fund shall not in any way be capable of being assigned or charged and shall not be liable to
attachment under any decree or order of any court in respect of any debt or liability incurred by the
member or the exempted employee, and neither the official assignee appointed under the
Presidency Towns Insolvency Act, 1909 (3 of 1909) nor any receiver appointed under the Provincial
Insolvency Act, 1920 (5 of 1920), shall be entitled to have any claim on, any such amount.

(2) Any amount standing to the credit of a member in the fund or of an exempted employee in a
provident fund at the time of his death and payable to his nominee under the Scheme or the rules of
the provident fund shall, subject to any deduction authorised by the said Scheme or rules, vest in the
nominee and shall be free from any debt or other liability incurred by the deceased or the nominee
before the death of the member or of exempted employee and shall also not be liable to attachment
under any decree or order of any court.

(3) The provisions of sub-section 1 and sub-section 2 shall, so far as may be, apply in relation to the
pension or any other amount, payable under the Pension Scheme and also in relation to any amount
payable under the Insurance Scheme as they apply in relation to any amount payable out of the
Fund.

12. Employer not to reduce wages, etc.

No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies
shall, by reason only of his liability for the payment of any contribution to the Fund or the Insurance
Fund or any charges under this Act or the Scheme or the Insurance Scheme reduce whether directly
or indirectly, the wages of any employee to whom the Scheme or the Insurance Scheme applies or
the total quantum of benefits in the nature of old age pension, gratuity, provident fund or life
insurance to which the employee is entitled under the terms of his employment, express or implied.

14. Penalties.

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act, the
Scheme, the Pension Scheme or the Insurance Scheme or of enabling any other person to avoid such
payment, knowingly makes or causes to be made any false statement or false representation shall
be punishable with imprisonment for a term which may extend to one year, or with fine of five
thousand rupees, or with both.

(1A) An employer who contravenes, or makes default in complying with, the provisions of section 6
or clause a of sub-section 3 of section 17 in so far as it relates to the payment of inspection charges,
or paragraph 38 of the Scheme in so far as it relates to the payment of administrative charges, shall
be punishable with imprisonment for a term which may extend to three years but-

(a) Which shall not be less than one year and a fine of ten thousand rupees in case of default in
payment of the employees‟ contribution which has been deducted by the employer from the
employees‟ wages;

(b) Which shall not be less than six months and a fine of five thousand rupees, in any other case:

Provided that the Court may, for any adequate and special reasons to be recorded in the judgment,
impose a sentence of imprisonment for a lesser term.

(1B) An employer who contravenes, or makes default in complying with, the provisions of section 6C,
or clause a of sub-section 3A of section 17 in so far as it relates to the payment of inspection
charges, shall be punishable with imprisonment for a term which may extend to one year but which
shall not be less than six months and shall also be liable to fine which may extend to five thousand
rupees:

Provided that the Court may, for any adequate and special reasons to be recorded in the judgment,
impose a sentence of imprisonment for a lesser term.

(2) Subject to the provisions of this Act, the Scheme, the Pension Scheme or the Insurance Scheme
may provide that any person who contravenes, or makes default in complying with, any of the
provisions thereof shall be punishable with imprisonment for a term which may extend to one year,
or with fine which may extend to four thousand rupees, or with both.

(2A) Whoever contravenes or makes default in complying with any provision of this Act or of any
condition subject to which exemption was granted under section 17 shall, if no other penalty is
elsewhere provided by or under this Act for such contravention or non-compliance, be punishable
with imprisonment which may extend to six months, but which shall not be less than one month,
and shall also be liable to fine which may extend to five thousand rupees.
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13. Write a note on object, scope and benefits of the maternity benefit act 1961.

Objectives

It aims to regulate the employment of women in certain periods before and after childbirth.

To provide for maternity benefits including maternity leave, wages, bonus, nursing breaks etc.

To protect the dignity to dignify of motherhood and the dignity of a new person by proving for full
and healthy maintenance of the women and her child at this important time when she is not
working.

Further the ratio of working women in the urban sector has increased remarkably and there is a
need to make a gender friendly labour market providing a propitious and an encouraging
environment and thus it was natural to protect the women in her maternity seeing a large number
of female employees.

Scope of the Maternity Benefit Act

By the end of 1972, this Act became applicable to the whole of India. This act applies to all
establishments employing 10 or more employees on any day in the preceding 12 months in an
unorganized or organized sector.

Section 2 lays down that it applies to every establishment being a:

 Factory,
 mine,
 or plantation
 Establishment belonging to the Government
 And every establishment wherein persons are employed for the exhibition of equestrian,
acrobatic, and other performances.

Further, the State Government can declare that all or any of the provisions of this Act shall apply to
any other establishments with approval of the central government by giving a notice of not less
than 2 months and notifying the same in the official gazette.

This Act does not apply to such factories or establishments where the Employees’ State Insurance
Act, 1948 is applied; except in the case of Section 5A and 5B.

The Maternity Benefit Act is also applied to the private sector but is often overlooked. Pregnant
women fear losing their jobs and thus fail to apply for maternity leave. Maternity benefit is a crucial
right of every pregnant woman. A good establishment will always try to implement and ensure that
women do not have to give up their careers to fulfil their role as a mother. Further, the private
establishments can modify their terms for maternity leave and benefit but within the ambit of this
Act.

Benefits a woman is entitled under the Act

Section 4 of the Act states that:

No employer, knowing about a women’s pregnancy can employ her immediately for the next 6
weeks after she has given birth or she had a miscarriage or abortion.
No pregnant woman even on her request will be required by her employer to do the
undermentioned work for one month immediately preceding six weeks, before the date of her
expected delivery; For e.g., if the woman’s expected date is 14 November 2021 then she cannot be
employed to work in September. Or for any period during the said period of six weeks for which the
pregnant woman does not avail of leave of absence under section 6.

She cannot be employed to do such work which is;

 of arduous nature
 involves long hours of standing
 likely to intervene with her pregnancy or the normal growth of the fetus
 likely to cause her miscarriage
 Adversely affect her health.

The purpose of the above provision is to protect the unborn child and the mother. Further, we can
infer that neither the employer can ask the pregnant woman to work nor the pregnant employee on
her request asks the employer to give her such work. Thus, during such a period the employer has to
help his pregnant employee financially by giving maternity benefits.

In the case of MCD v. Female Workers, temporary female employees claimed that they should also
be entitled to maternity benefits. The court held that as per Articles 39 and 42 of the Indian
Constitution woman cannot be compelled to undertake hard labour at the time of advanced
pregnancy as it would be detrimental to her health and also to the health of the child. Thus, she
would be entitled to maternity leave for certain periods before and after delivery.

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Write a note on Maternity leave under the maternity benefit act, 1961. 6

The time of maternity leave which a lady worker is qualified for has been expanded from 12 weeks
to 26 (twenty) weeks. The Act once in the past enabled pregnant ladies to profit Maternity Benefit
for just 6 a month and a half before the date of anticipated conveyance and a month and a half after
the date of conveyance. Presently, this period has been expanded to 8 months. The time of
maternity advantage of 26 weeks can be stretched out to ladies who are as of now under maternity
leave at the hour of usage of this revision in the Act. The improved Maternity Benefit can be profited
for the initial two kids. According to the revision, a lady having at least two enduring kids will be
qualified for 12 (twelve) weeks of Maternity Benefit of which not more than 6 (six) will be taken
preceding the date of the normal conveyance. A lady who embraces a kid underneath the age of 3 (a
quarter of a year, or an appointing mother (that is an organic mother, who utilizes her egg to make
an undeveloped organism embedded in some other lady), will be qualified for Maternity Benefit for
a time of 12 (twelve).

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14. Explain the various central government schemes provided under unorganised workers social
security act 2008 to strengthen the unorganised workers.

The article at first gives a brief definition to what an organized sector is and who are those who
works under this sector. What areas of industries are covered by the unorganized sector in India. It
also most of all focuses on some schemes and projects that the government of India be it central
government or state government has introduced in the country for the social security and protection
of unorganized sector employees and employers as well.

The article covers some latest and some old schemes which has created some difference in the
situation of the unorganized sector. There have been many numbers of schemes brought up the
governments. It will show to what extent the government spends on this scheme from the budget
and how far has they reached to them. It will discuss the eligibility of those who can enroll
themselves for the scheme and how much benefitted they will be if they avail the benefits as said
under the several schemes by the government.

 To find welfare schemes for unorganized sector in India we must know how an entity is
considered to be unorganized. Some of the features which characterizes an entity to be
unorganized are:

1. If it a small-scale entity and has a local ownership.

2. If it does not have any legal status.
3. If it is flexible in fixation of prices.
4. If it does not have proper packaging and production.
5. Its entry and exit from the market are easy.
6. Employees of unorganized sector have lower security in job, and they are more victimized by
their employers in context of unfair practices like termination of job, less wages, less no. of
holidays and more work and discrimination in workplace etc.

Central Government Schemes

1. National Pension Scheme for Traders And The Self-employed Persons

2. Pradhan Mantri Shram Yogi Maan-dhan Yojana
3. Pradhan Mantri Rozgar Protsahan Yoajna
4. Aam Aadmi Bima Yoajna
5. Atal Beemit Vyakti Kalyan Yojana
6. Central Sector Scheme For Rehabilitation Of Bonded Labourer, 2016
7. Gatidhara Scheme For Self-employment
8. Grant In Aid Scheme To NGO’s For Welfare Of Women Labour
9. Atal Pension Yojana
10. Rashtriya Swasthya Bima Yojana
11. Revised Integrated Housing Scheme
12. Garib Kalyan Rozgar Yojana
13. Mahatma Gandhi Bunkar Bima Yojana
14. Deen Dayal Updhyaya Antyodaya Yojana (Day)
15. Nirman Kamgar Awas Shayata Yojana

1. National Pension Scheme for Traders And The Self-employed Persons

 This scheme was made under Unorganized Workers Social Security Act, 2008 section 3(1) for
Vyapari’s to protect them in their old age. This scheme’s objective is to provide social security
 and old age protection to the shopkeepers/ traders/ self-employed people called the vyapari’s
between the age of 18-40 years who are not engaged in EPFO/ESIC/PM-SYM. having annual
turnover not more then 1.5 Crore in rupees. They are the shopkeepers or owners who have
petty or small shops, restaurants, hotels, real estate brokers etc.

2. Pradhan Mantri Shram Yogi Maan-dhan Yojana

 The scheme PM-SYM was made to protect unorganized workers who perform work like street
vendors, agriculture related work, construction site workers, workers in industries of leather,
handloom, mid-day meal, rikshaw or auto wheelers, rag picking, carpenters, Hamals,
fisherman’s etc. the scheme aimed to give them social security who are not engaged in
EPFO/ESIC and who does not qualify to be taxpayer between the age of 18-40 years.

3. Pradhan Mantri Rozgar Protsahan Yoajna

 This scheme was brought by the government to create employment for the unskilled or semi-
skilled workers by providing incentives to the employers. The government will fully contribute
to the employees’ provident scheme and the employees provident fund on behalf of the
employers, who have registered themselves in the employee’s provident fund organization. To
avail this, benefit the employees must have a UAN (Universal Account Number).
 The government will contribute 12% in EPF for the employees for three years of their job but
conditional that they should be employed under the same employer for the complete three
years spam.

4. Aam Aadmi Bima Yoajna

 The scheme was brought by the GOI for the people whose family income falls below the
poverty line (BPL) or marginally above the BPL covered under vocational group and are
between the age of 18-59 years.
 This scheme acts as a social security scheme because it provides for insurance cover for the
people who are categorized under vocational groups or rural landless households such as
fisherman, rikshaw pullers, beedi workers, brick kiln workers, lady tailors, tannery workers,
papad workers, primary milk producers, tendu leaf collectors, forest workers etc.
 The people benefited with this scheme can claim for insurance from the nodal agency when
some mishap occurs like permanent total disability, or death due to accident, loss of one eye
and one limb due to accident.

5. Atal Beemit Vyakti Kalyan Yojana

 Under this scheme the government will provide monetary support to those who will get
unemployed. This will be available to those who have worked for at least 2 years preceding
the date of unemployment. Only those persons who were insured and have contributed for
minimum of 78 days during previous four contribution periods.
 ESI Act 1948, section 2(9), covers those employees who are eligible for this scheme.
  The relief can be claimed for a period of 90 days of unemployment only throughout the
lifetime.

6. Central Sector Scheme For Rehabilitation Of Bonded Labourer, 2016

 This scheme was first introduced in 1975 where it was the state government’s duty to identify,
rescue and rehabilitate the bonded labor and the central government would assist them in
financial terms on 50-50 basis. The scheme has been changed since then several times and
now in 2016.
 Now after the revised guidelines of the scheme the state government does not need to pay
any financial assistance to the rehabilitation of bonded labors instead the ministry of labor
and employment will provide the assistance for their rehabilitation of up to 4.5 lakhs for each
district. The amount they will receive will be deposited in the annuity scheme making them
the beneficiary for e.g. If it an adult male then 1 lakh, if it is some women, children, or
transgender then three-lakhs.

7. Gatidhara Scheme For Self-employment

 Gatidhara is a scheme launched the west Bengal government. This scheme was related to the
transport department for giving employment to the youth who has registered themselves as
unemployed. They would get employment in the transport sector of the west Bengal state.
 Eligibility: all those who age between 20-45 years will get employment under this scheme
having family income of less than 25,000 rupees per month. Only one member from each
household could apply for this.
 The beneficiaries would get a subsidy of up to 1,00,000 rupees and if female then 1.5 lakhs.

8. Grant In Aid Scheme To NGO’s For Welfare Of Women Labour

 This scheme was bought by the government to create awareness among women laborer’s as
we all know they are not much educated and aware about their rights so government planned
to provide them with knowledge of what they can have.
 The scheme was to give assistance in finance to the NGO’S or voluntary organization which are
formed for the welfare of the women, so government would provide the organizations finance
so that they can arrange campaigns and movements across different places and spread the
information related to different scheme and constitutional and other provisional rights they
have like remuneration, holidays, pay work and hours of working and minimum wages etc.

9. Atal Pension Yojana

 This scheme aimed at providing social security to the employees of private sector or those
unorganized sectors who does not offer pension benefits to their employees on their
retirement. If someone want to vail themselves under this scheme, he/she should be an Indian
citizen and between the age of 18-40 years having bank account linked with Aadhar.
 The contributor can on his choice attain a pension of 1000-5000 rupees, or he can also get an
accumulated sum of the pension after his death. The accumulated amount will be given to the
 spouse or if the spouse is dead as well then to the nominee. The contributor must have
contributed for t lest of 20 years of his employment. This scheme gives a sense of social security
to the person in case of accident, illness, or diseases etc.

10. Rashtriya Swasthya Bima Yojana

 This scheme is to provide socio-economic security to the BPL workers by providing them with
health insurances. A person who with a family of five members can enroll for this scheme if he
is categorized under BPL.
 The central government will contribute 75% of the amount and 25% will be contributed by the
state government. The beneficiaries only have to pay thirty rupees of registration (per annum
for all) as premium.
 The insurance sum will be of 30,000 rupees per annum for each family enrolled under the
scheme. Currently there are three crore persons enrolled to the scheme.
 The insured sum will cover expenses incurred in hospital, previous illness if any and any
common illness.

11. Revised Integrated Housing Scheme

 The scheme intends to help workers working in mines like iron, manganese, limestone, mica
etc. the workers for a minimum of one year period should be registered with labor welfare
organization. The applicant must not have any pucca house oh his own or of his house or
anyone related to him in Indian territory. The applicant must not have availed benefit of any
other housing scheme previously. It is also required that the applicant must have land for
residential purpose either on owned or leased for 20 years which can be extended.
 The scheme requires many requirements from a minor worker like the land should be
minimum 60 square feet which is for the general category and that the house must be built
within 18 months but along with it there are also many benefits for the beneficiaries like they
will get a subsidy of 1, 50,000 for building the house in three installments into the
beneficiary’s bank account. The deposit does not have to deposit any sum of money to
withdraw the subsidy form the bank account deposited by the government.

12. Garib Kalyan Rozgar Yojana

 The scheme was bought by the government of India to promote employment opportunities
for migrant workers, in June 2020 with a budget of 50,000 crore rupees. This scheme was
bought because of COVID-19 during which many workers were shifted from one place to
another having huge loses in their livelihood because of loss of employment during the
lockdown period.
 For this scheme 25 types of working areas were identified such as, PM Kusum Works, cattle
sheds, poultry shed, goat sheds, shyama prasad Mukherjee RURBAN mission, workers in
national highways, in construction of wells etc. which made the tally of migrated workers to
670,000.
 The scheme will give employment for one hundred and twenty-five days.
13. Mahatma Gandhi Bunkar Bima Yojana

 This scheme was introduced in 2005 for providing insurance benefits to the workers of
handloom industry, as wee can see the scheme provides for insurance benefit to the
handloom industry workers if they happen any casualty which leads to death or disability
partial or full.
 Applicants of this scheme should be engaged with state handloom development corporation,
ranging between age of 18 to 59 years. If there is a natural death, then a sum of 60,000 rupees
will be provided and 1,50,000 rupees in case of accidental death and full disability.
 An annual premium of rupees 330 will be given whose breakage will be as follows, 150 rupees
by government of India, one hundred rupees by life insurance corporation of India the best
part is the weaver does not need to pay any amount for premium.

14. Deen Dayal Updhyaya Antyodaya Yojana (Day)

 Ajeevika scheme was replaced by DAY, the purpose of DAY is to skill people to train them in
rural and in urban areas as well. Its target was to train half a million people from urban area
and one million people from rural are by the end of 2016 and 2017, respectively.
 The scheme aims to create employment by providing training to people and make them self-
employed by enabling loans provisions so that they can set up small scale business or self-help
groups in urban areas.
 Scheme established SVEP which start-up village entrepreneurship program which acts like sub-
scheme of this scheme. The scheme aims to enhance skills and self-business by financing and
supporting the poor.

15. Nirman Kamgar Awas Shayata Yojana

 Construction Workers mostly come from the poor or rural sections of the society. Therefore,
most of them do not have the convenience of their home. Nor do they have enough money to
build or buy their own house. Keeping this in mind, the Uttar Pradesh Building and Other
Construction Workers Welfare Board runs ‘Construction Worker’s Housing Assistance Scheme’
for construction workers. Under this, workers are given financial assistance to build or buy a
house.
 This assistance amount to 1 lakh rupees. It is paid in two installments. Apart from building a
house, the UP government also aids the laborers for the repair of a house, which is Rs 15,000.
But the same beneficiary does not get both benefits simultaneously.

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15. Explain the registration procedure and authorities under the Karnataka shops and commercial
establishments act 1961.
The Karnataka Shops and Commercial Establishments Act, 1961 is one of the state labour laws
enforced by the Department of Labour. This act is valid all over the state of Karnataka from the date
notified by the state government. This act provides regulations and other guidelines for work and
employment in Shops and Commercial establishments inside the state of Karnataka.

According to this act, the “Commercial Establishment” means

1. Commercial
2. Trading
3. Banking
4. Insurance Company
5. An Establishment or Administrative services.
6. A person where he/she is employed mainly in office work, a hotel, a restaurant, boarding, a
café or other refreshment places
7. A theatre or any other public amusement or entertainment.
8. The State government can also declare a specific space as a commercial establishment for
this Act.

How to register an establishment under this act?

1. For registration and renewal of establishment under the Karnataka Shop and Commercial
Establishment Act, 1961 entrepreneurs can avail the e-Karmika online facility.
2. In case of a new registration, you should register the organisation within 30 days from the date of
commencement of business.
3. In case of an existing organisation, you should register the organisation from the date on which
this Act comes into force.
4. The registration certificate is valid for five years and it should be renewed before the expiry date
by paying fees and in the manner prescribed.
5. The business owner should display the registration certificate in a place where everyone can see
inside the office premises.
6. If you plan to change any information, such change should be notified in the prescribed format to
the registration authority.
7. After closing the business establishment, the owner should submit the registration certificate to
the authority.

Authority

Registering Officer to be contacted for availing service Labour/Senior Labour Inspector

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16. Write a note on objectives of special economic zones act 2005.

A Special Economic Zone or SEZ is a specially marked territory or enclave within the national borders
of a country that has more liberal economic laws than the rest of the country. This is a very
important topic that features in the Indian Economy section of the UPSC syllabus. Know more about
SEZs in India through this article.

The chief objectives of the SEZ Act are:

1. To create additional economic activity.

2. To boost the export of goods and services.
3. To generate employment.
 4. To boost domestic and foreign investments.
5. To develop infrastructure facilities.

The Objectives of SEZs

The Special Economic Zones Act, 2005, provides the legal framework for establishment of Special
Economic Zones and also for units operating in such zones. The Special Economic Zones Act, 2005
has been enacted with the major objective of generation of additional economic activity, promotion
of export of goods and services, investment from domestic and foreign sources and creation of
employment opportunities. This Act is unique as it helps in ‘backward and forward’ linkages of the
economy.

Special Economic Zones (SEZs) are specially earmarked geographical zones, which can be developed
by a private sector or public sector developer or in a public private partnership (PPP) model.

In these zones, units function under rules and regulations different from those under which other
units in the country operate. The units in the SEZs have to be net foreign-exchange earners but they
are not subjected to pre-determined value addition or asked to fulfill minimum export performance
requirements. Approved industrial units, banks, insurance, etc., can be located here.

SEZs in India are modified versions of the earlier export processing zones. The policy to set up SEZs,
first introduced in April 2000, got a legal validity with the SEZ Act passed in 2005. The Act came into
force on February 9, 2006.

A state can have more than one SEZ with freedom to the manufacturing unit to establish in any SEZ
in any state. State governments will have to attract industry by framing bold policies and providing
world-class external infrastructure to the zone.

The SEZ Act includes “India specific” rules which provide for drastic simplification of procedures and
single window clearance on matters relating to Central and state governments along with income-
tax exemptions for 15 years. They also provide for setting up multi-product and product-specific
zones while also making provisions for services sector SEZs.

It was clarified that there would be no relaxation of labour laws in these zones though some states
had sought relaxation of these provisions. Other laws of the land would also prevail, but for the
purposes of customs duty levies, the zones would be treated as foreign territory.

In an era of intense competition for markets and investment, SEZs attract export-oriented foreign
direct investment and develop industrial skills and resources to successfully compete in the
international economy.

They can promote foreign trade.

They can create employment.

They can develop relatively less developed areas, and thus reduce disparities in socio-economic
development, besides accelerating industriali-sation and urbanisation.

The SEZs provide facilities to help support production units which can match the international level
in quality. The SEZ exports can reach a staggering high, boosting a country’s exports tremendously.
They promote economic activity through backward and forward linkages with domestic economies
and aid in development of technological and learning spillovers. They are one way of ensuring
infrastructure and other facilities come up across the country—a difficult thing to ensure otherwise.
The world-class infrastructure set up will cut down the cost of conducting business and render the
industry competitive globally. The infrastructure will include electricity availability at competitive
rates, capital availability at internationally benchmarked rates, good transport links to check
shipment delays and flexible labour laws.

The SEZs are duty-free enclaves and deemed foreign territories where trade operations, duties and
tariffs are concerned. The exemptions given to SEZs mean that infrastructure facilities are available
at lower cost. SEZs are also seen as good attractions of FDI.

The Preamble

The preamble of the Special Economic Zones Act reads, “ An Act to provide for the establishment,
development and management of the Special Economic Zones for the promotion of exports and for
matters connected therewith or incidental thereto.”

The Salient Features of the SEZs Bill, 2005

The following are the salient features of the Bill;

i. Matters relating to establishment of Special Economic Zone and for setting up of units therein,
including requirements, obligations and entitlements;
ii. Matters relating to requirements for setting up of off-shore banking units and units in
International Financial Service Centre in Special Economic Zone, including fiscal regime
governing the operation of such units;
iii. The fiscal regime for developers of Special Economic Zones and units set up therein;
iv. Single window clearance mechanism at the zone level
v. Establishment of an Authority for each Special Economic Zone set up by the Central
Government to impart greater administrative autonomy; and
vi. Designation of special courts and single enforcement agency to ensure speedy trial and
investigation of notified offences committed in Special Economic Zones…..”

SEZ Background

 An SEZ Policy was announced for the very first time in 2000 in order to overcome the obstacles
businesses faced.
 There were multiple controls and many clearances to be obtained before starting a venture.
 Infrastructure facilities were shoddy and well below world standards in India.
 The fiscal regime was unstable as well.
 In order to attract huge foreign investments into the country, the government announced the
Policy.
 The Parliament passed the Special Economic Zones Act in 2005 after many consultations and
deliberations.
 The Act came into force along with the SEZ Rules in 2006.
 However, SEZs were operational in India from 2000 to 2006 (under the Foreign Trade Policy).

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17. Write a note on hours and annual leave with wages under the Karnataka shops and
commercial establishments act 1961.

The Karnataka Government, under the Shops & Commercial Establishments Act, amended the carry
forward limit of the annual leave from 30 days to 45 days now.
As per the Karnataka Shops and Commercial Establishments Act, every employee is entitled to
annual leave with wages at the rate of one day for every twenty days of work performed by an adult
employee and one day for every fifteen days of work performed by a young person.

In a given year, an employee earns around 18 days of annual leaves.

Unlike other types of leave, the unused annual leave balance does not lapse at the end of the year. It
will be carried forward to the following year.

Till now, an employee could carry forward a maximum of 30 days of annual leave balance. Beyond
this limit, the leaves would lapse. If the employer so desires, the excess leave balance over and
above the maximum carry forward limit can be converted to cash instead of letting it expire.

The Karnataka Government amended this provision and enhanced the carry forward limit to 45 days.

The accumulated leave encashment will be based on the prevailing rates of wages as on the date of
encashment. The employers have to make the required changes in their internal leave policy. If an
employer is already providing a better leave accumulation policy, there is no restriction.

Weekly Holiday for the Establishment

An establishment must remain closed for one day of the week. The owner of the establishment has
to fix such a day at the beginning of the year and the same should be informed to the registration
authority.

However, certain establishments are exempted from weekly holidays. Here are some of the
establishments.

1. Clubs, Hotels, School and College Hostels, Residential schools.

2. Hair Cutting Saloon
3. Copper, Container, Manufacturing Firms.
4. Selling Petrol and Diesel
5. Daily Newspaper & Weekly Magazines
6. Cinema halls, theatres and other recreational centres.
7. Medicine and Medical Equipment sellers
8. Organisations performing research/study on infectious diseases.

Working hours:

Any Business or establishment within the prescribed working hours. In other words, any
establishment shall not before and after the following hours.

Bangalore City – Before 6 am and Night after 9 pm.

Other location: Before 8 am and after 8 pm.

Prohibition and Exemption:

Children under 14 years of age are prohibited to work in any establishment. No women shall be
required or allowed to work in any establishment after 8 PM.

However, Information Technology/ Business Technology organisation can get permission to work
after 8 PM (Form R).

Employment and Regulation:

  Any employee who has completed 180 days or 6 months of service cannot be dismissed without
prior notice.
 Working time-period of any employee should not exceed 48 hours and 58 hours including extra
working hours.
 Employee attendance should be maintained in Form T.
 Salary should be credited to every employee before the 7th of next month.

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18. Explain the impact of industrial jurisprudence on labour welfare legislations.

The rise in industrial jurisprudence has eliminated the idea of master and servant, where the boss
and the contractor principle arose, where the former could appoint the latter but could no longer
expel it. An employee’s benefit is now secured in many ways by Legislation.

In MC Mehta case (see here), the Court served as a worker’s defender and sometimes has been a
lawmaker where labour law is silent or vague. However, several labour regulations and
constitutional changes in response to the call, were made by the judiciary. It has also expanded to
protect the interests of workers, the fundamental freedom to equality curves, trading in the right to
life and freedom provided by human beings by the rule of law. This expression has been extended
significantly by the Supreme Court

Rights for Workers enumerated under the Indian Constitution in accordance with Industrial
Jurisprudence

In specific, Article 24 of the Constitution (see here) specifies that no child under the age of 14 will be
engaged in any industrial production or factory.

Article 38 (see here), it was explicitly stated that “the state shall strive to promote the welfare of the
people.”

Article 39 (see here) ordains that it shall be the duty of the State to apply certain principles of social
justice in making laws. It says citizens are not forced by economic necessity to enter avocations
unsuited to their age or strength.

The Condition that is diverted by Article 42 (see here) also directs the State to make provision for
just and fair assurances working life and maternity opportunities. The State shall always seek to
guarantee, by relevant law provided through sufficient commercial entity Agricultural, or in some
other way, to all staff Job, a living wage, manufacturing or otherwise, working conditions
guaranteeing a decent standard of life with complete satisfaction.

Article 43 (see here) provides that the State shall take the required action by way of relevant laws or
in any other means to guarantee the involvement of Staff in the management of enterprises,
establishments, or other decision-making activities that are active in each enterprise.

Impact of industrial jurisprudence - Legislation passed in India to preserve socio-economic equality

1. The Workmen’s Compensation Act, 1923

2. The Industrial Employment (Standing Orders) Act, 1946
3. The Industrial Disputes Act, 1947
4. The Minimum Wages Act, 1948
5. The Employees State Insurance Act, 1948
6. The Factories Act, 1948
 7. Industrial Dispute
8. Bonded Labour
9. Equal Pay for Equal Work

The Workmen’s Compensation Act, 1923

The Act provides compensation for death, total disablement, partial disablement, and temporary
disablement. Employers are responsible for paying such compensation following the Act and rules
made thereunder. Initially, it was applied to the railway, tram, factory, mine, sea, dock, building,
trade, sewage, and fire brigade workers. The critical component of the trade union is to make it
possible for Staff to behave collectively. The strike is the last resort tactic to use.

The Industrial Employment (Standing Orders) Act, 1946

Among the most critical reasons for conflict between management and employees in India were
industrial companies. The Industrial Employment Act (standing orders) aimed at regulating the
conditions on the recruitment of employees, discharge for disciplinary activities, holidays, etc.

The Industrial Disputes Act, 1947

In order to enhance labour standards, the Industrial disputes Act of 1947 came into existence and
was a progressive form of social law. The purpose of this Act is to mitigate work-management
tension and promote economic and social fairness as much as feasible. This Act aims to allow for
labour conflicts to be examined and resolved.

The Minimum Wages Act, 1948

In 1948 the Minimum Wages Act was passed to provide benefits to employees. The Act was passed
to guarantee the protection of workers in a fair economy by setting a minimum pay cap in specific
industries. The primary aim of the Bill is to set the minimum salaries in order to prevent the risk of
workplace abuse.

The Employees State Insurance Act, 1948

It is another vital piece of Legislation on social security. A principle of law aims to provide the
exploited labor community with social and economic rights. The Act aims to provide social security in
the event of illness, pregnancy, and many other issues by granting such incentives to workers who
come under this Legislation—the first national security program to include benefits funded by
employees, contractors, and government.

The Factories Act, 1948

Factories Act 1948 is a socio-economic act designed to achieve social reform. The Act seeks to
maintain protection and functional living and working standards for employees operating in factories
against industrial workplace accidents. provisions of the Act clearly show that both are for the
benefit and welfare of workers

Industrial Dispute

The most controversial dispute related to employee-employer relationships arises, and questions
raised in regards to what if any dispute arises between worker and employer of the said organization
then that dispute can be held under ‘industrial dispute’ under section 2(k) of the Industrial Dispute
Act? Before the ruling of the Supreme Court in Central Provinces Transport Service v Raghunath
Gopal Patwardhan (see here). This issue has led to significant controversy. The overall outcome of
the above ruling is that a single employee, not assisted by the “appreciable number” of workmen or
the community, does not remediate under the Industrial Disputes Act of 1947.

Bonded Labour

Bandhua Mukti Morcha (see here) is a landmark judgment in the field of bonded labor, where the
Court has extended its protective powers to various aspects, including its recognition, release and
rehabilitation, and has ordered the Government of Haryana to (a) set up a vigilance panel in each
subdivision of the area; (b) instruct the district magistrates to undertake work on bond
identification; (c) to provide assistance to non-political social action organizations and community
groups with a view to ensuring the enforcement of the Act (d) to draw up, within the same duration
of three months from the date of the judgment, a scheme or system for the resettlement of
liberated bonded workers in the light of the standards established by the Secretary to the
Government of India.

Equal Pay for Equal Work

In Mackinnon Mackenzie & Co. v Audrey D’Costa (see here), the Court noted that the authority
would take a wider view when determining if the job is the same or substantially similar. Similarly, in
deciding if any variations are of practical significance, the authority would take an equally broad
approach, for the very principle of comparable work implies variations in nature, although they
should not negate the argument for equality on an insignificant basis. The Court added that the
authority would consider all the work that was actually performed, which were not technically
necessary.

Conclusion

Throughout the industrial enterprise, employees are the dominant partners, and the industry cannot
thrive without collaboration, commitment, dedication, honesty, and character. There will always
also be a reliable and essential partnership between the boss and the employee. The industry ‘s
income must, therefore, be divided by businesses, employees, and the environment. At the same
time, workers must be safe, secure, and adequate welfare; healthy working conditions should be
provided to ensure that not only the employers reaped but also society and the nation will prosper
successfully. Social and economic labour enhancement is very crucial to keeping industrial peace,
and to secure industrial peace, social and economic labour enhancement is indeed very necessary.

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19. How to determine the contribution towards provident fund? Is there any mechanism to recover
dues from the employer?

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20. Write a note on procedure for fixation of minimum wages.

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21. Write a note on central advisory board and state advisory board under the contract labour
(regulation and abolition) act 1970

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22. What are the powers and duties of inspectors under the employee’s provident fund and
miscellaneous provisions act 1952.

Section 13 of Employee's Provident Funds Miscellaneous Provisions Act, 1952, the powers and duties
of the Inspectors are explained.

(1) The appropriate government may, by notification in the Official Gazette, appoint such persons as
it thinks fit to be Inspectors for the purposes of this Act [, the Scheme [, the [Pension ] Scheme or the
Insurance Scheme]], and may define their jurisdiction.

(2) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the
correctness of any information furnished in connection with this Act or with any [Scheme or the
Insurance Scheme] or for the purpose of ascertaining whether any of the provisions of this Act or of
any [Scheme or the Insurance Scheme] have been complied with [ in respect of [an establishment] to
which any [Scheme or the Insurance Scheme] applies or for the purpose of ascertaining whether the
provisions of this Act or any [Scheme or the Insurance Scheme] are applicable to any [establishment]
to which the [Scheme or the Insurance Scheme] has not been applied or for the purpose of
determining whether the conditions subject to which exemption was granted under section 17 are
being complied with by the employer in relation to an exempted [establishment].

(a) require an employer [or any contractor from whom any amount is recoverable under section 8A]
to furnish such information as he may consider necessary;

(b) at any reasonable time [and with such assistance, if any, as he may think fit, enter and search]
any [establishment], or any premises connected therewith and require any one found in charge
thereof to produce before him for examination any accounts, books, registers and other documents
relating to the employment of persons or the payment of wages in the [establishment];

(c) examine, with respect to any matter relevant to any of the purposes aforesaid, the employer [or
any contractor from whom any amount is recoverable under sections 8A], his agent or servant or
any other person found in charge of the [establishment], or any premises connected there with or
whom the Inspector has reasonable cause to believe to be or to have been, an employee in the
[establishment];

(d) makes copies of, or take extracts from, any book, register or other document maintained in
relation to the establishment and, where he has reason to believe that any offence under this Act
has been committed by an employer, seize with such assistance as he may think fit, such book,
register or other document or portions thereof as he may consider relevant in respect of that
offence;]

(e) Exercise such other powers as the [Scheme or the Insurance Scheme] may provide.

(2A) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the
correctness of any information furnished in connection with the [Pension] Scheme or for the
purpose of ascertaining whether any of the provisions of this Act or of the [Pension] Scheme have
been complied with in respect of an establishments to which the [Pension] Scheme applies, exercise
all or any of the powers conferred on him under clause (a), (b), (c) or (d) of sub-s. (2).]

(2B) The provisions of the [Code of Criminal Procedure, 1898], shall, so far as may be, apply to any
search or seizure under sub-section (2) [or under sub-section (2A), as the case may be,] as they apply
to any search and seizure made under the authority of a warrant issued under [section 98] of the
said Code.
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23. Explain the salient features of provisions of prevention sexual harassment act 2013.

Following are the salient features of the POSH act, 2013:

1. Aggrieved woman
2. What constitutes sexual harassment
3. Constitution of internal complaints committee
4. Complaint
5. Inquiry
6. Conciliation
7. Inquiry report
8. Compensation
9. Duties of employer
10. Cognizance of offence by courts

1. Aggrieved woman

The Act defines who is an aggrieved woman. The Act states :

“(a) “aggrieved woman” means—

(i) in relation to a workplace, a woman, of any age whether employed or not, who alleges to have
been subjected to any act of sexual harassment by the respondent;

(ii) in relation to dwelling place or house, a woman of any age who is employed in such a dwelling
place or house.”

2. What constitutes sexual harassment?

The Act defines what actions and behaviour comprise of the offence of sexual harassment.
According to the Act:

“(n) “sexual harassment” includes any one or more of the following unwelcome acts or behaviour
(whether directly or by implication) namely:—

i. physical contact and advances; or

ii. a demand or request for sexual favours; or
iii. making sexually coloured remarks; or
iv. showing pornography; or
v. any other unwelcome physical, verbal or non-verbal conduct of sexual nature;”

3. Constitution of internal complaints committee

The Act provides for the constitution of internal complaints committee. It states the members to be
nominated by the internal complaints committee, tenure of the members. The Act provides for the
remuneration of each member by the employer.

The conditions under which the members may be removed is provided for in the Act.
4. Complaint

The Act states the form and manner in the complaint needs to be made by the aggrieved woman. It
also states the persons who can file a complaint on behalf of the aggrieved under some specified
situations.

5. Inquiry

The Act lays down the inquiry procedure to be followed by the internal committee and its powers. It
is stated that the inquiry must be completed within a period of ninety days.

6. Conciliation

The Act provides for the efforts to be made by the internal committee for conciliation at the request
of the aggrieved woman.

The internal committee may before initiating the inquiry and at the request of the aggrieved woman
take steps to settle the matter between the aggrieved and the respondent through conciliation.

Where the parties agree to settle no further inquiry is to be made by the internal committee,
provided that no monetary settlement is made on conciliation, and is sent to the employer to take
actions as specified in the recommendation.

7. Inquiry report

The Act states that the internal committee needs to submit the inquiry report within ten days from
the completion of the inquiry.

In case the complaint made by the aggrieved is found to be false the internal committee shall
recommend to the employer that no action is required to be taken.

In case the complaint made by the aggrieved is found to be true the internal committee shall
recommend to the employer that following action is required to be taken:

(i) to take action for sexual harassment as a misconduct in accordance with the provisions of the
service rules applicable to the respondent or where no such service rules have been made, in such
manner as may be prescribed;

(ii) to deduct, notwithstanding anything in the service rules applicable to the respondent, from the
salary or wages of the respondent such sum as it may consider appropriate to be paid to the
aggrieved woman or to her legal heirs.

The employer or the District Officer shall act upon the recommendation within sixty days of its
receipt by him.

8. Compensation

The Act lays down the factors to be considered in determining the amount of compensation to be
paid by the offender to the aggrieved.
For the purpose of determining the sums to be paid to the aggrieved woman the Internal Committee
or the Local Committee shall have regard to—

a) the mental trauma, pain, suffering and emotional distress caused to the aggrieved woman
b) the loss in the career opportunity due to the incident of sexual harassment
c) medical expenses incurred by the victim for physical or psychiatric treatment
d) the income and financial status of the respondent
e) feasibility of such payment in lump sum or in instalments”

9. Duties of employer

The Act elaborately states the duties of the employer. The duties are as follows:

a) provide a safe working environment at the workplace

b) make aware of the penal consequences of sexual harassments
c) organise workshops and awareness programmes on the Act at regular intervals
d) provide necessary facilities to the Internal Committee for dealing with the complaint and
conducting an inquiry;
e) assist in securing the attendance of respondent and witnesses
f) access of information to IC for inquiry on a complaint
g) provide assistance to the woman
h) cause to initiate action
i) treat sexual harassment as a misconduct under the service rules and initiate action for such
misconduct;
j) Monitor the timely submission of reports by the Internal Committee.

10. Cognizance of offence by courts

The Act states that the offence under the POSH Act is non-cognisable. Cognizance of the offence
cannot be taken by the court on its own. No court inferior to that of a Metropolitan Magistrate or a
Judicial Magistrate of the first class shall try any offence punishable under this Act.

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Define sexual harassment. Explain the redressal mechanism provided under sexual harassment of
women at workplace (Prevention, prohibition and redressal) Act, 2013. 16

Sexual harassment is a type of harassment involving the use of explicit or implicit sexual overtones,
including the unwelcome and inappropriate promises of rewards in exchange for sexual favours.
Sexual harassment includes a range of actions from verbal transgressions to sexual abuse or assault.
Harassment can occur in many different social settings such as the workplace, the home, school,
churches, etc. Harassers or victims may be of any sex or gender.

The Guidelines

The Supreme Court issued a series of ‘guidelines’ (based on CEDAW) to protect women from sexual
harassment at the workplace. These guidelines were to strictly observe in all workplaces (whether in
the private or private sector) and would be binding and enforceable in law until suitable laws were
made.
The Supreme Court set out the following significant guidelines:

1. The employer and / or other responsible people in a workplace are duty-bound to prevent or
deter sexual harassment and set up processes to resolve, settle or prosecute in such cases.
2. For the first time in India “sexual harassment was defined authoritatively”. The Supreme Court
stated that it includes such unwelcome behaviour (whether directly or by implication) such as:
physical contact and advances, a demand or request for sexual favours, sexually coloured
remarks, showing pornography, and any other physical, verbal or non- verbal conduct of sexual
nature.
3. All employers or persons in charge of workplaces must strive to prevent sexual harassment and if
any act amount to a specific offence under the Indian Penal Code 1860 or any other law, they
must take appropriate action to punish the guilty.
4. Even if the act is not considered a legal offence or a breach of service rules, the employer should
create appropriate mechanisms so that the complaint is addressed and redressed in a time bound
manner.
5. This complaint mechanism must, if necessary, provide a complaints committee, a special
counsellor or other support service, such as assured confidentiality. The complaints committee
should be headed by a woman, at least half of the members should be women. Also, to pre-empt
any undue influence from senior levels, the complaints committee must involve a third party
(such as a NGO) familiar with the challenges of Sexual Harassment.
6. The employer must sensitise female employees to their rights and prominently notify the court’s
guidelines.
7. Even if a third party is responsible for sexual harassment, the employer must take all steps
necessary to support the victim.
8. The Central and State Governments should adopt suitable measures to ensure private sector
employees implement these guidelines.

Who can file a Complaint:

# The complaint must be made in writing within 3 months of the incident. In case of series of
incidents, report must be prepared within 3 months of last incident. The time limit can be extended
to three more months on valid circumstances.

# At the complainants request, the committee can take steps to mediate a reconciliation before
initiating an inquiry. The legal heir can make a complaint on behalf of the woman in case of
physical/mental incapacity, death or otherwise.

# The complainant can ask for transfer (for herself or the respondent) 3 months leave or other relief
during inquiry period.

# The inquiry should be completed within a period of 90 days from the day of complaint. Non-
Compliance is punishable.

Preventive Steps

All employers or persons in charge of work place whether in public or private sector should take
appropriate steps to prevent sexual harassment. Without prejudice to the generality of this
obligation they should take the following steps:

a. Express prohibition of sexual harassment as defined above at the work place should be notified,
published and circulated in appropriate ways.
b. The rules of government and public sector bodies relating to conduct and discipline should include
rules prohibiting sexual harassment and provide for appropriate penalties in such rules against the
offender.

c. As regards private employers, steps should be taken to include the aforesaid prohibitions in the
standing orders under the industrial employment (standing orders) act, 1946.

d. Appropriate work conditions should be provided in respect of work, leisure, health and hygiene to
further ensure that there is no hostile environment towards women at work places and no employee
woman should have reasonable grounds to believe that she is disadvantaged in connection with her
employment.

Internal Complaints Committee

The complaint mechanism, referred to above, should be adequate to provide, where necessary, a
complaints committee, a special counsellor or other support service, including the maintenance of
confidentiality.

The complaints committee should be headed by a woman and not less than half of its member
should be women. Further, to prevent the possibility of any undue pressure or influence from senior
levels, such complaints committee should involve a third party, either NGO or other body who is
familiar with the issue of sexual harassment.

The complaint committee must make an annual report to the government department concerned of
the complaints and action taken by them. The employers and person in charge will also report on
the compliance with the aforesaid guidelines including on the reports of the complaints committee
to the government department.

Local complaints committee:

There should be a Local complaints committee also called the LCC to be set up by the government of
India in the district level for the unorganized sector and also for the institutions having less than 10
employees.

Complaints Procedure

1. Any employee will have a right to lodge a complaint concerning sexual harassment against an
employee.
2. Such a complaint needs to be in writing.
3. If the complaint is oral, the same needs to be in writing. The complainant, if desires could be
facilitated in writing the complaint by an Internal Complaints Committee member.
4. The Complainant will be afforded confidentiality on the complaint by the Internal Complaints
Committee members
5. Immediately upon receipt of the Complaint, the Member of the Internal Complaints Committee
to whom the Complaint is made shall communicate the same to the Chairperson of the Internal
Complaints Committee.
6. Within a period of 5 working days from the date of such communication, the Chairperson shall
convene a meeting of the Internal Complaints Committee.
7. The Internal Complaints Committee shall examine the complaint and shall undertake
investigation of the complaint after giving opportunities to the complainant to present his/her
case and the respondent to give his/her version. The Internal Complaints Committee may
examine witness from both the sides and also give opportunity of cross-examining of the witness.
 Documents if any produced by the parties may be taken on record. Neither the complainant nor
the respondent is allowed to bring in any legal practitioner to represent them in their case at any
stage before the Internal Complaints Committee. The Internal Complaints Committee on
completion of the inquiry will submit its report to the complainant, respondent and the company
management. The Internal Complaints Committee shall enquire into the complaint as prescribed
under The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 and the Rules made thereunder as in force from 9-12-2013.

Meaning of Sexual Harassment and Sexually Oriented Behaviour

‘Sexual Harassment’, includes any unwelcome sexually determined behaviour, direct or by

implication, and includes physical contact and advances, a demand or request for sexual favours,
sexually coloured remarks, showing pornography, any other unwelcome physical, verbal or non
verbal conduct of a sexual nature. Sexually Oriented behaviour shall mean and include but not
limited to the following:

1. Material that is sexual in nature, sexist, sexually explicit and so on and is displayed in the
workplace, circulated, or put in someone’s workspace or belongings, or on a computer, i­-pad,
mobile phone, i-phone, blackberry or on any other machine or on the internet or any other
public display system or public place in the work premises.
2. Verbal abuse or comments that put down people because of their sex.
3. Comments about people’s (women/men) bodies.
4. Tales of sexual exploits.
5. Graphic descriptions pornography.
6. Pressure for dates.
7. Sexually explicit gestures.
8. Unwelcome touching and hugging.
9. Sexist and insulting remarks.
10. Sexist jokes and cartoons.
11. Displaying pornography in the workplace.
12. Insisting that workers wear revealing clothing.
13. Inappropriate gifts.
14. Discussion of one’s partner’s sexual life.
15. Lewd and threatening letter
16. “Accidentally” brushing sexual parts of the body.
17. Pressing or rubbing up against an aggrieved person.
18. Indecent exposure.
19. Subtle or overt pressure for sexual favour
20. Soliciting sexual services.
21. Demanding sexual services.
22. Sexual or physical contact, such as kissing or touching.
23. Intrusive questions about sexual activity.
24. Sexual assault.
25. Repeated sexual invitations when the person invited has refused/ignored similar invitations.
26. Coerced sexual intercourse (e.g., as a condition of employment or academic status).

Protection against Victimisation

In the event complainant being an employee and the respondent being his/her manager, during the
pendency of investigation and even after such investigation if the manager is found to be guilty, the
respondent shall not act as Manager of the Complainant.

Consequence of Complaint Being Proved

In the event allegations made in the complaint are proved against the respondent, it will be taken as
proved misconduct and the competent authority may impose any of the punishment as envisaged in
the policy on disciplinary process including dismissal.

Consequence of False Complaint

In the event allegations made by the complaint are proved to be false then the competent authority
may impose any of the punishment as envisaged in the policy on disciplinary process including
dismissal.

Obligations of the Management

The Management of the Company shall provide all necessary assistance for the purpose of ensuring
full effective and speedy implementation of this Internal Complaints Committee constituted as
above and shall implement the decisions in an expeditious manner.

Third Party Harassment

In case of third party Sexual Harassment the Internal Complaints Committee will actively assist and
provide all its resources to the complainant in pursuing the complaint.

Savings

The proceedings under this policy shall not be stalled or postponed merely because the complainant
is proceeding against the respondent under any other provision of civil or criminal law.

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Explain about the complaint under sexual harassment of women at workplace etc.

Constitution of ICC-SHW for considering complaints of sexual harassment of women employees at

DST

In compliance with the instructions of National Commission for women and guidelines issued in
implementation of the directives of Hon'ble Supreme Court Judgement dated 13th August, 1997 in
the case of Visakha and others vs. State of Rajasthan and Others on the subject of sexual harassment
of women in the workplace, this Department had duly constituted a Complaint Committee for
considering complaints of sexual harassment of women working in the Department of Science and
Technology. The composition of the Complaints Committee was revised subsequent to transfer etc.
of the existing Chairperson/Member. This Committee in the Department has now been re-
constituted on 12th July, 2017 for considering complaints of sexual harassment of women
employees.

Complaint procedure:

Complaint regarding Sexual Harassment against women can be made either in paper form or by
sending e-mail to iccsh-dst[at]gov[dot]in. The Act stipulates that aggrieved woman can make written
complaint of sexual harassment at workplace to the ICC or to the LCC (in case a complaint is against
the employer), within a period of three months from the date of incident and in case of a series of
incidents, within a period of three months from the date of last incident. As per the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013, in case the
aggrieved woman is unable to make a complaint on account of her physical incapacity, a complaint
may be filed inter alia by her relative or friend or her co-worker or an officer of the National
Commission for Woman or State Women's Commission or any person who has knowledge of the
incident, with the written consent of the aggrieved woman.

Ministry of Women & Child Development launched an online complaint management system titled
Sexual Harassment electronic -Box (She-Box) on 24th July, 2017 for registering complaints related to
Sexual Harassment at workplace. The She-Box is an initiative to provide a platform to the women
working or visiting any office of Central Government (Central Ministries, Departments, Public Sector
Undertakings, Autonomous Bodies and Institutions etc.) to file complaints related to Sexual
Harassment at workplace under the Sexual Harassment of Women at workplace (Prevention,
Prohibition and Redressal) Act, 2013.

Once a complaint is submitted to She-Box, it will be directly sent to the Internal Complaint
Committee (ICC) of the concerned Ministry/ Department/ PSU/ Autonomous Body etc. having
jurisdiction to inquire into the complaint. The She-Box also provides an opportunity to both the
complainant and nodal administrative authority to monitor the progress of inquiry conducted by the
ICCs.

The Sexual Harassment Complaint Process

The Complaints Committee/s needs to have information on the six stages (including fifteen steps),
detailed below, for addressing a complaint of workplace sexual harassment.
Stage One: Receipt Of The Complaint

Informal Mechanism

 If the complainant chooses to adopt the informal process to resolve her

complaint/experience of workplace sexual harassment, then it is the responsibility of the
person designated to receive and manage the Complaints Committee to explore enabling
ways to address the complaint.
 This can include counselling, educating, orienting, or warning the respondent to promptly
stop the unwelcome behaviour or appointing a neutral person to act as a conciliator
between the parties to resolve the complaint through conciliation.
 However, before recommending conciliation, the Committee must assess the severity of the
situation and if necessary, advise and enable the complainant to opt for the formal route.
 At no point, the Complaints Committee will advise the complainant to resolve the matter
directly with the respondent.
 Where such an informal process is successful, such resolution is to be recorded by the
conciliator and forwarded to the ICC/LCC who in turn will forward the same to the
employer/District Officer for further action based on the resolution.
 Employers/District Officers are responsible for taking steps to ensure that the complainant is
not subject to any backlash.
 The choice of a formal process rests with the complainant even if the person responsible for
managing the complaint believes that this can be resolved through an informal process.

Formal Mechanism
 1. If the complainant opts for formal redress, or the nature of the complaint is serious which
calls for formal redress, then the Complaints Committee responds to the complaint.
2. Complaints Committee/s members must be free of any conflict of interest with either the
concerned parties or with the outcome.
3. Ensure that the independent third party member has sound knowledge, skill, and experience
in dealing with workplace sexual harassment complaints.

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24. Write a note on effects of globalization on industry and labour.

Globalization affects industrial relations systems both directly and indirectly, and the factors
surrounding it. For instance, internationalization of markets, free movement of capital and labor,
increasing competition, and markets’ importance impact the global industrial relations systems.
While it accelerates economic interdependence between countries, it can lead to convergence in
global industrial relations. With more organizations starting to take their business global, work
standards and wages start to level out, and unions have to alter their recruitment policies to prepare
for differences in work culture. Developed countries are looking to hire more workers from
developing ones to bridge labour demand and supply gaps. The shortage of labour could threaten
their economic growth, international competitiveness, and productivity performance. In conclusion,
globalization is here to stay, and any country that wants to be on the world’s economic map has to
enter this competitive environment.

Benefits of Labour under Globalisation

Rise in Employment:

With the opening of Special Economic Zones, the availability of new jobs has been quite effective.
Furthermore, Export Processing Zones or EPZs are also established employing thousands of people.
Another factor is cheap labour in India. This has motivated big firms in the west to outsource work to
companies present in this region. All these factors are causing more employment.

Surge in Compensation:

After the outburst of globalization, the compensation levels have stayed higher. These figures are
impressive as compared to what domestic companies might have presented. The level of knowledge
and skill brought by foreign companies is obviously advanced. This has ultimately resulted in
modification of the management structure.

Improved Standard of Living and Better Purchasing Power:

Wealth generation across Indian cities has enhanced since globalization has fully hit the nation. You
can notice an improvement in the purchasing power for individuals, especially those working under
foreign organizations. Further, domestic organizations are motivated to present higher rewards to
their employees.

Impact of Globalization on Industrial Sector:

Effects of Globalization on Indian Industry started when the government opened the country's
markets to foreign investments in the early 1990s. Globalization of the Indian Industry took place in
its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and
BPO.
Globalization means the dismantling of trade barriers between nations and the integration of the
nations economies through financial flow, trade in goods and services, and corporate investments
between nations. Globalization has increased across the world in recent years due to the fast
progress that has been made in the field of technology especially in communications and transport.
The government of India made changes in its economic policy in 1991 by which it allowed direct
foreign investments in the country. The benefits of the effects of globalization in the Indian Industry
are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO,
petroleum, manufacturing, and chemical sectors and this helped to provide employment to many
people in the country. This helped reduce the level of unemployment and poverty in the country.
Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies
brought in highly advanced technology with them and this helped to make the Indian Industry more
technologically advanced.

Advantages of Globalization:

 There is an International market for companies and for consumers there is a wider range of
products to choose from.
 Increase in flow of investments from developed countries to developing countries, which
can be used for economic reconstruction.
 Greater and faster flow of information between countries and greater cultural interaction
has helped to overcome cultural barriers.
 Technological development has resulted in reverse brain drain in developing countries.

Conclusion

Globalization has been defined as the process of rapid integration of countries and happenings
through greater foreign trade and foreign investment. It is the process of international integration
arising from the interchange of world views, products, ideas and other aspects of culture.

The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts
of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and
manufacturing industries. As huge amounts of foreign direct investments (FDI) were coming to the
Indian Industry, they boosted the Indian economy quite significantly.

The benefits of the effects of globalization in the Indian Industry are that many foreign companies
set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and
chemical sectors and this helped to provide employment to many people in the country.

This helped reduce the level of unemployment and poverty in the country. Also the benefit of the
Effects of Globalization on Indian Industry are that the foreign companies brought in highly
advanced technology with them and this helped to make the Indian Industry more technologically
advanced.

The various negative Effects of Globalization on Indian Industry are that it increased competition in
the Indian market between the foreign companies and domestic companies. With the foreign goods
being better than the Indian goods, the consumer preferred to buy the foreign goods. This reduced
the amount of profit of the Indian Industry companies. This happened mainly in the pharmaceutical,
manufacturing, chemical, and steel industries.

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Write a short note on international labour organisation (ILO) standards. 6

ILO International Labour Standards (ILS) are legal instruments, drawn up by the ILO constituents
(governments, employers and workers), that set out basic principles and rights at work. They are
either Conventions, which are legally-binding international treaties that may be ratified by ILO
Member States, or Recommendations, which serve as non-binding guidelines. In many cases, a
Convention lays down the basic principles to be implemented by ratifying countries, while a related
Recommendation can also be autonomous (not linked to any Convention).

ILS are adopted at the International Labour Conference (ILC) and Member States are required to
submit them to their competent authority (normally the parliament) for consideration. In the case
of Conventions, this means consideration for ratification. Ratifying countries commit to applying the
Convention in national law and practice and to reporting its application at regular intervals to the ILO
regular supervisory system. Representation and complaint procedures can be initiated against
countries for violations of a Convention they have ratified.

By the end of June 2018, the ILO had adopted 189 Conventions, 205 Recommendations and 6
Protocols covering a broad range of work issues. Areas covered by ILS include: basic human rights,
occupational safety and health, wages, working time, employment policy and promotion, vocational
guidance and training, skills development, specific categories of workers, labour administration and
inspection, maternity protection and social security, indigenous and tribal people, and migrant
workers.

The ILO Governing Body has identified the following eight Conventions as “fundamental”, covering
subjects that are considered as fundamental principles and rights at work: Freedom of Association
and Protection of the Right to Organise Convention, 1948 (No. 87); Right to Organise and Collective
Bargaining Convention, 1949 (No. 98); Forced Labour Convention, 1930 (No. 29); Abolition of Forced
Labour Convention, 1957 (No. 105); Minimum Age Convention, 1973 (No. 138); Worst Forms of Child
Labour Convention, 1999 (No. 182); Equal Remuneration Convention, 1951 (No. 100); and
Discrimination (Employment and Occupation) Convention, 1958 (No. 111).

The principles of these Conventions are also covered in the ILO Declaration on Fundamental
Principles and Rights at Work (1998). In 1995, the ILO launched a campaign to achieve universal
ratification of these fundamental Conventions.

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Effect of privatisation on Indian industry. 6

Positive Impact on Economy

The role of entrepreneurs is encouraged in the private sector industries since they have the liberty
to make their own decisions for the enterprises. They are not under any pressure from the
government.

Before 1991 when privatisation had not come up in the economy, the government sector industries
had a hard time sanctioning funds for the economy. The Government usually delays the sanctioning
of the funds. This is because the government manages it’s administrative very intricately and with
great complexity, and so the inflow of money is delayed.
Before 1991, the expenditure of the government was more than what it was earning. As a result of
this, the government was facing a budget deficit. This further resulted in an increased financial
burden on the government.

Private companies lead to the inflow of Foreign Direct Investment in the country. Because India has
a wide market and a broad consumer base, foreign products are wanted by more and more
consumers today. With more and more companies being privatised, people from all over the world
come to invest their money in these companies.

The regular supply of funds has increased with the coming up of the privatisation of the companies.
This is because private companies do not require any permission in order to decide the financial
status of the economy.

When privatisation happened in the country, this financial burden of the government was
significantly reduced. Private sector companies do not spend a huge amount of money on the non-
development sectors, unlike the government sector companies. By earning more, the private
companies helped the government in paying the taxes as well.

With systematic and structured management, private sector companies are known to satisfying the
never-ending wants of the consumers. Hence diversification of products takes place. Buyers are
given ample of options to choose from in the market.

Private companies are more focussed on increasing their managerial efficiencies so that they meet
their goals in time or at times before the deadline. This allows them to avoid any unnecessary
formalities.

Negative Impact on the Economy

Private sector companies can heavily influence the market in the economy. They can increase or
decrease the price of a product solely on the basis of their preference. This results in a monopolistic
control of the private companies in the market.

With the coming up of more and more private sector companies, the social interest has been
persistently neglected. The main objective of every private sector industry is to earn a profit. In this
process of earning more and more profit, society is ignored by those industries.

The term ‘full employment’ refers to a situation in which everybody who is in the working-age group
and wants to work has employment. Privatisation can result in the non-achievement of a full-
employment situation in the country. As mentioned earlier, the private companies are majorly
concerned with profit maximisation instead of providing full employment to the citizens of the
country.

The term ‘voluntary retirement’ refers to a situation in which the employee quits voluntarily from
his/her job and goes into retirement. When the Public Sector Units were sold to private investors,
many people found it difficult to work under the conditions laid off by the private investors. As a
result, most of them chose voluntary retirement.
At times when private companies find themselves spending more on the inputs and the production
process, in order to cut the cost, they may remove one or more than one employees causing
unemployment in the economy.

When private sector companies enter the market of the economy, they can significantly increase the
price of a product. The consumer might or might not have the purchasing power to consume that
product. The demand for that particular product then significantly decreases. And if this case
continues, the economy goes in a state of inflation.

Advantages of Privatisation

Better Incentives:

 Private-sector industries provide incentives that are known to be better than the ones
provided by Government sector industries.
 In private sector companies, the employer, as well as the employees, get paid solely on the
basis of the output of their work. The same cannot be said for government sector
companies.
 Because of the absence of a concession like this in the government sector companies,
privatisation brings increases the efficiency of the company.
Reduce Political Interference:

 Because the public sector industries are managed by the government, political interference
is bound to take place.
 In the case of political interference, the public sector companies tend to make decisions
under pressure from the party in power.
 Such a decision might or might not be economically beneficial to the company as well as its
employees.
 Private-sector industries avoid working under the parties in power and do not encourage
any political influence.
To Achieve Long Term Goals:

 Since public sector companies have huge political influence on them, their goals are short
term.
 This is because the parties in power are more concerned about the upcoming elections and
interested in acquiring the votes.
 Private companies are more focused and have long term goals to meet.
 Hence they are more concerned about setting the company on the right path.
 Competition in the market:
 When more and more private sector companies are present in the market, the competition
grows.
 With growing competition, the consumers find themselves with a lot of options to choose
from.
 When private companies in the market are engaged in healthy competition, the economy is
bound to grow and become efficient.

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Explain the provisions relating to unauthorised deductions in wages and penalties under the
payment of wages act, 1936. 16

Unlawful deductions under Payment of Wages Act, 1936

Deductions other than those authorised under section 7 of the Payment of Wages Act are unlawful
deductions. Any deduction from the wages of the employee made on the ground other than those
mentioned under section 7 is termed as an unlawful deduction. Deductions from wages are not
permitted as per the grounds and procedures are given under the Payment of Wages Act, 1936.

Permissible deductions from wages

1. Fines
2. Deduction for absence from duty
3. Deduction for damage or loss of goods expressly entrusted to the employee
4. Deduction for house accommodation, amenities and services supplied by employer
5. Deduction for recovery of advances, loans and adjustment of overpayment of wages
6. Deduction for payment to co-operative societies, social security contributions and insurance
schemes
7. Other Deductions

From wages as defined above, an employer is permitted to make deductions only under the heads as
specified in Section 7 of the PoW Act, and not otherwise. The total amount of any such deductions in
any given wage period cannot exceed 50 percent of the wages. The deductions allowed under the
PoW Act are discussed below:

Fines

An employer may impose fines on an employee only for such acts and omissions that are previously
approved by the appropriate government. Before imposing a fine on an employee, the employee
must be given an opportunity of being heard against the fine. The amount of fine imposed cannot
not exceed 3 percent of the wages in a particular wage-period.

Deduction for absence from duty

An employer is authorised to make a deduction from an employee’s wages when an employee is

absent from work on his own volition and without proper authorisation or if an employee is present
at the work place but refuses to work without proper reason. Such deduction must be proportionate
to the period of absence.

Deduction for damage or loss of goods expressly entrusted to the employee

An employer can deduct the value or amount of damage or loss caused to the employer due to
neglect or default directly attributable to the employee. However, before making such deductions,
the employee must be afforded an opportunity of being heard against such a charge.

Deduction for house accommodation, amenities and services supplied by employer

Where an employer or the government or a housing board set up by the government provides house
accommodation or any such amenity which is accepted by an employee, then the employer can
make proportionate deductions for providing such amenities.

Deduction for recovery of advances, loans and adjustment of overpayment of wages

In case of advances paid to the employee by the employer or loans given to the employee for
building a house or for any other purpose, the employer can recover such advances or loans
together with interest by way of deductions from the employee’s wages. Further, deductions can
also be made for adjustment of over-payment of wages.

Deduction for payment to co-operative societies, social security contributions and insurance
schemes

Contributions to provident funds and payments to be made by an employee for government

approved co-operative societies, can be deducted from the employee’s wages. Further, with the
written authorisation of the employee, the employer can also deduct amounts paid as premium on
life insurance policies.

Other Deductions

Other permissible deductions include, income-tax payable by the employee, deductions required to
be made by an order of court or other competent authority and deductions for payment of
insurance premium on fidelity guarantee bonds. With a written authorisation of the employee, the
employer can also deduct contributions to any labour welfare fund constituted by the employer or
registered trade union, fees for membership of any registered trade union and contributions to the
Prime Minister’s National Relief Fund.

Penalty for offences under the Act

(a)Purposes behind punishment:-

 Delay in payment of wages

 Unreasonable deductions
 Overabundance reasoning for nonappearance of obligation
 Overabundance reasoning for harm or misfortune to business
 Overabundance reasoning for house-settlement courtesy or administration

(b)Punishable with fine which will not be under 1000/- rupees yet which may stretch out to 7500/ –
rupees

 On the off chance that Wage period surpass one month

 Failure in payment of wages on a working day
 Wages not paid in type of current coin or money notes or in both
 Inability to keep up the record for gathered fines from employees
 Ill-advised utilization of fine gathered from employees
 Failure of the worker to show notice containing such edited compositions of this Act and
of the rules made

(c)Punishable with fine which may stretch 3000/ – rupees

 Whoever blocks an Inspector in the release of his obligations under this Act
  Whoever adamantly will not deliver on the interest of an Inspector any register or other
records.
Whoever won’t or wilfully fails to bear the cost of an Inspector any sensible office for
making any entry, review, assessment, supervision, or request approved by or under this
Act
(d)Punishable with fine which will not be under 1000/ – rupees however which may stretch out to
7500/ – rupees

 Whoever repeats a similar offence submitted previously.

 Detainment for a term which will not be short of what one month yet which may reach
out to a half year and fine which will not be under 3750/- rupees yet which may broaden
20500/ – rupees.
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Explain the salient features of payment of gratuity act, 1972. 16

The Payment of Gratuity Act 1972 is a social security enactment. An Act to provide for a scheme for
the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports,
Railway companies, shops or other establishments. The significance of this legislation lies in the
acceptance of the principle of gratuity as a compulsory statutory retiral benefit. The Act accepts, in
principle, compulsory payment of gratuity as a social security measure to the wage-earning
population in industries, factories and establishments. Thus, the main purpose and concept of
gratuity are to help the workman after retirement, whether retirement is a result of the rules of
superannuation or physical disablement or impairment of vital part of the body.

Salient Features of the Payment of Gratuity Act, 1972

1. The Act is a self-contained and an exhaustive Act and the provisions of this Act and rules made
under it have an overriding effect on all other Acts or instruments or contracts so far as they are
inconsistent with this Act.
2. The Act is fairly sweeping in coverage, as it applies to all factories, mines, oil fields, plantations,
ports and railways irrespective of the number of workmen employed by them. It also covers
shops and establishments employing 10 or more persons.
3. The Act gives a statutory right of gratuity to all the employees, who have rendered five years’
continuous service and whose services stand terminated after coming into force of the Act on
account of superannuation, or retirement, or resignation, or death or disablement.
4. The Act provides both executive and quasi-judicial machinery for matters pertaining to
nomination, determination and recovery of gratuity.
5. The executive machinery pertains to maintenance of records regarding opening, change or
closure of establishments, display of notices and maintenance of records by the controlling
authority. The quasi-judicial functions have been divided between the employers and the
Controlling Authority in as much as for payment of gratuity, the first forum provided is an
application to the employer. When the employer has declined or avoided payment of gratuity,
then an application is required to be made to the Controlling Authority.
6. The machinery provided for recovery rests with the Controlling Authority.
7. The orders of the Controlling Authority for payment or determination of gratuity are applicable
before the appropriate government or the appellate authority.

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What are the powers exercised under interstate migrant workmen act 1079?

Section 31. Power to exempt in special cases.-

The appropriate Government may, by notification in the Official Gazette and subject to such
conditions and restrictions, if any, and for such period or periods as may be specified in the
notification, direct that all or any of the provisions of this Act or the rules made thereunder shall not
apply to or in relation to any establishment or class of establishments or any contractor or class of
contractors or any inter-State migrant workmen in such establishments or class of such workmen, if
that Government is satisfied that it is just and proper so to do having regard to the methods of
recruitment and the conditions of employment in such establishment or class of establishments and
all other relevant circumstances.

Section - 33. Power to give directions.-

The Central Government may give directions to the Government of any State as to the carrying into
execution in the State of the provisions contained in this Act.

Section - 34. Power to remove difficulties.-

(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may,
by order published in the Official Gazette, make such provisions not inconsistent with the provisions
of this Act, as appears to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of two years from the date on which this
Act comes into force.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each
House of Parliament.

Section 35. Power to make rules.-

(1) The appropriate Government may, subject to the condition of previous publication, make rules
for carrying out the purposes of this Act.

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

a) the form and manner in which an application for the registration of an establishment may be
made under section 4, the fees payable thereon and the form of a certificate of registration
issued under that section;
b) the form in which an application for the grant or renewal of a licence may be made under
section 9 and the particulars it may contain;
c) the manner in which an investigation is to be made in respect of an application for the grant
of a licence and the matters to be taken into account in granting or refusing a licence;
d) the form of a licence which may be granted or renewed under this Act, the conditions
subject to which the licence may be granted or renewed, the fees payable for the grant or
renewal of a licence and the security, if any, required to be furnished for the performance of
the conditions of the licence;
e) the circumstances under which licence may be varied or amended under section 10;
f) the form and the manner in which appeals may be filed under section 11 and the procedure
to be followed by appellate officers in disposing of the appeals;
 g) the wage rates, holidays, hours of work and other conditions of service which an inter-State
migrant workman is entitled under section 13;
h) the period within which wages payable to inter-State migrant workmen should be paid by
the contractor under sub-section (1) of section 17 and the manner of certification of such
payment under sub-section (2) thereof;
i) the time within which allowances or facilities required by this Act to be provided and
maintained may be so provided by the contractor and in case of default on the part of the
contractor, by the principal employer under section 18;
j) the powers that may be exercised by inspectors under section 20;
k) the form of registers and records to be maintained, and the particulars and information to
be contained in notices to be exhibited, by the principal employers and contractors under
section 23 ;
l) the manner of submission of returns, and the forms in which, and the authorities to which,
such returns may be submitted;
m) legal aid to inter-State migrant workmen;
n) any other matter which is required to be, or may be, prescribed under this Act.

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it
is made, before each House of Parliament is in session for a total period of thirty days which may be
comprised in one session or in two or more successive sessions and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to the validity of
anything previously done under that rule.

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Discuss about the registration of certain establishments and revocation of registration in certain
cases under inter-state migrant workmen act 1979

Section 4. Registration of certain establishments.-

(1) Every principal employer of an establishment to which this Act applies shall, within such period as
the appropriate Government may, by notification in the Official Gazette, fix in this behalf with
respect to establishments generally or with respect to any class of them, make an application to the
registering officer, in such form and manner and on payment of such fees as may be prescribed, for
the registration of the establishment:

Provided that the registering officer may entertain any such application for registration after the
expiry of the period fixed in that behalf, if the registering officer is satisfied that the applicant was
prevented by sufficient cause from making the application in time.

(2) Within one month after the receipt of an application for registration under sub-section (1), the
registering officer shall,-

(a) if the application is complete in all respects, register the establishment and issue to the principal
employer of the establishment a certificate of registration in the prescribed form; and

(b) if the application is not so complete, return the application to the principal employer of the
establishment.
(3) Where within a period of one month after the receipt of an application for registration of an
establishment under sub-section (1), the registering officer does not grant under clause (a) of sub-
section (2) the certificate of registration applied for and does not return the application under clause
(b) of that sub-section, the registering officer shall, within fifteen days of the receipt of an
application in this behalf, from the principal employer, register the establishment and issue to the
principal employer a certificate of registration in the prescribed form.

Section 5. Revocation of registration in certain cases.-

If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise,
that the registration of any establishment has been obtained by misrepresentation or suppression of
any material fact or that for any other reason, the registration has become useless or ineffective
and, therefore, employer of the establishment to be heard and with the previous approval of the
appropriate Government, revoke by order in writing the registration on and communicate the order
to the principal employer:

Provided that where the registering officer considers it necessary so to do for any special reasons, he
may, pending such revocation, by order suspend the operation of the certificate of registration for
such period as may be specified in the order and serve, by registered post, such order along with a
statement of the reasons on the principal employer and such order shall take effect on the date on
which such service is affected.

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Explain the salient features relating to interstate migrant workmen act, 1979.

 The proposed legislation will apply to every establishment and contractors that employed five
or more inter- State migrant workmen are employed or were employed on any day of the
preceding twelve months.
 Every establishment that is recruiting interstate migrant workmen will be required to be
registered with registering officers appointed under either Central Government or State
Government as the case maybe. Likewise, every contractor who employ interstate migrant
workmen need to obtain a licence from the specified authority both of the State i.e. home state
(from where belongs) and the host state (where to be employed).
 The contractor is required to furnish particulars regarding the workmen in the form to be
prescribed by rules to the specified authority of both the state as well as to issue to every
workman employed by him, a pass book containing the details of the employment.
 The interstate migrant workman will be entitled to a journey allowance in addition to his wages
along with displacement allowance.
 Several guidelines has been laid down regarding the wages payable to inter-state migrant
workmen which need to paid from the date of his recruitment.
 There are various amenities which need to be provided to the workmen that includes provision
of suitable residential accommodation, adequate medical facilities, protective clothing to suit
varying climatic conditions and suitable work environment / conditions owing to the fact that
they have migrated from another state.
 The provision for appointing an inspector by the appropriate government to keep check on
implementation of legislation in full-fledged manner.
 The interstate migrant workmen can raise an industrial dispute arising out of his employment
either in the host State or in the home state after the completion of the contract of employment
as per his convenience. He might also transfer the proceedings in relation to an industrial
dispute pending before an authority in the host state to the corresponding authority in the
 Home State on the ground that he has returned to the State after the completion of his
contract.
 Deterrent punishments have been laid down for the contravention of the provisions of the
legislation.

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Short note on – Reasons of child labour in India. 8

"Child" as defined by the child labour (prohibition and regulation) Act 1986 is a person who has not
completed the age of 14 years .As a layman we can understand that Child labour is the practice of
having children engage in economic activity, on a part or full time basis. Every child is considered as
a gift of god, it must be nurtured with care and affection with in the family and society. But
unfortunately due to the socio economic problems children were forced to work in industries,
leather factories, hotels and eatery. The child labour is not an isolated phenomenon it is coupled
with socio economic problem of the society so in order to eliminate child labour first we should
focus on socio economic issues of the society. It is in the hands of administrative .It should bring
effective measures to eliminate child labour.

Reasons of child labour in India

1. Poverty
2. Lack of access to quality education
3. Poor access to decent work
4. Limited understanding of child labour
5. Natural disasters & climate change
6. Conflicts & mass migration

Poverty

‘Poverty is certainly the greatest single force driving children into the workplace.’ When families
cannot afford to meet their basic needs like food, water, education or health care, they have no
choice but to send their children to work to supplement the household income. Poverty is
considered as one of the most important causes of child labour as it is linked to other driving factors
including: low literarcy and numeracy rates, lack of decent work opportunities, natural disasters and
climate change, conflicts and mass displacement. Poverty and child labour form a vicious cycle,
without tackling one, we cannot eradicate the other.

Lack of access to quality education

‘The availability and quality of schooling is among the most important factors.’ School needs to be a
welcoming environment, with appropriate class sizes, a curriculum designed for the local context,
and affordable for rural communities. Getting children into school and out of harmful work is one
thing but keeping them there a means creating quality education accessible for all.

Poor access to decent work

‘Children who were involved in child labour often lack the basic educational grounding which would
enable them to acquire skills and to improve their prospects for a decent adult working life.’ If young
people cannot access work which is safe, with social protection, fair pay, equality for men and
women and which provides a space for workers to express their opinions, they often have no choice
but to do work which is hazardous. When children above the minimum working age are doing
hazardous work, this is also considered child labour.
Limited understanding of child labour

‘The view that work is good for the character-building and skill development of children.’ When
families do not understand the dangers of child labour, and how these impact on the health, safety,
well-being and future of their child, they are more likely to send their children to work. Some
cultural beliefs and social norms can also be drivers of child labour.

Natural disasters & climate change

‘In rural areas, farmers who see their crops destroyed on account of climate changes have no other
choice but to send their children out to work.’ The effects of natural disasters and climate change is
one which is becoming of increasing concern. Rural families who depend on reliable seasons for
farming are particularly vulnerable to altered patterns of rainfall, soil erosion, or extreme weather.
When crops are destroyed or farming land is ruined, families struggle to make a living and are more
likely to send their children to work in neighbouring farms.

Conflicts & mass migration

‘There is a strong correlation between child labour and situations of conflict and disaster’ According
to the ILO children make up more than half of the total number of people displaced by war. These
children are particularly vulnerable to forms of exploitation, including child labour, due to an
increase in economic shocks, a breakdown of social support, education and basic services, and
disruption of child protection services. The incidence of child labour in countries affected by conflict
is almost twice as high as the global average. Children are also vulnerable to becoming involved in
armed conflict, this is considered one of the Worst Forms of Child Labour.

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The fundamental rights and directive principles of state policy are the backbone of industrial
jurisprudence in India. Elucidate.

The fundamental rights as the backbone of industrial jurisprudence in India

The basic principles are:

1. The right of workmen to combine and form associations or unions.

2. The right of workmen to bargain collectively for the betterment of their conditions of
service.
3. The realization that economic struggle is inevitable because it is but natural that labour
world agitate for better conditions.
4. A shift from the doctrine of laissez faire to a welfare state.
5. Tripartite consultations i.e., solution of the industrial or labour disputes through the
participation of workers, employers and the Government.
6. The State can no more be a neutral onlooker but must interfere as the protector of the
social good.
7. Minimum standards must be guaranteed through State legislation.

The concept of industrial jurisprudence in our country developed only after independence. Until
independence the change in attitude of the government and the benevolent labour legislation only
aimed at amelioration of the conditions of labour and it could hardly be said to be a deal in social
justice to the working class.
The birth of industrial jurisprudence in our country may be ascribed to the Constitution of India
which made more articulate and clear the industrial relations philosophy of the Republic of India.
This philosophy has afforded the broad and clear guidelines for the development of our industrial
jurisprudence and has thus taken India one step forward in her quest for industrial harmony. The
Parliament and the Supreme Court have helped in shaping industrial jurisprudence, the former
through legislation and the latter as interpreter of the labour laws.

Rights of Workers

1. The laws cover the right to work of one's choice,

2. Right against discrimination,
3. Prohibition of child labour,
4. Fair and humane conditions of work
5. Social security,
6. Protection of wages,
7. Redress of grievances,
8. Right to organize and form trade unions,
9. Collective bargaining and participation in management

India has numerous labour laws such as those prohibiting discrimination and Child labour, those that
aim to guarantee fair and humane conditions of work, those that provide social security, minimum
wage, right to organize, form trade unions and enforce collective bargaining. India also has
numerous rigid regulations such as maximum number of employees per company in certain sectors
of economy, and limitations on employers on retrenchment and layoffs, requirement of paperwork,
bureaucratic process and government approval for change in labour in companies even if these are
because of economic conditions.

Labour Policy in India

After independence it was largely felt that the labour policy must emphasize upon self-reliance on
the part of the workers. Since independence till 1954, the period when V.V. Giri was the Labour
Minister, all official pronouncements emphasized that labour should become self-reliant. An equally
forceful view had been to prefer reliance upon the Government. This cross-current of approach to
the labour policy gave place to a new approach known as Tripartism.

Thus Tripartism became the central theme in the so-called Nanda=period that began in 1957. During
this period the Government paid reliance on three party approach, namely the trade union
representing the workers, the employers, and the Government. In this kind of approach the
representatives do not decide anything but their role is mainly advisory.

Directive Principles of State Policy As the backbone of industrial jurisprudence in India

The Directive Principle of the State Policy is enshrined in Part IV of the Constitution. The aim of Part
IV of the Constitution is to direct the legislative and executive organs of the government while
framing the policies. The state shall take all endeavors to build a nation with facilities of the old
home, employment, schools to educate, fair wages to all, good and standard life and act. The
directive Principle is not enforceable in any court of law as they are enshrined as the ‘to-do list’ by
the Constitution makers.

Industrialization is the modern trend in almost all developing nations. The proper conditions
between employer and employee are needed or can say it’s on priority for the planned, progressive
and purposeful development so the society. No economy can reach its peak if its labour force is not
happy. Post- Independence has witnessed the evolution of new India with many small scales and
large scale industries and factories. Along with the industrial revolution, the period also witnessed
the mass awakening and responsible being towards their rights and duties. As a result of which
during the 20th-century a new branch of Industrial Jurisprudence has developed in our country.
Industrial Jurisprudence paved a way for many labour and industrial legislation not only this many
knocked the doors of High Court and Supreme Court which lead to many landmark judgments. The
principles on which the labour or industrial legislation laid down should be social justice, social
equality, international uniformity, and national economy.

Constitutional Provisions Regarding labour Laws

The Labour laws of independent India derive their strength, origin from the Constitution of India and
International Convention and recommendations. The Part III of the Constitution which is the
Fundamental Right guaranteed the labour force their dignity of work, equal treatment, and savior
from exploitation under Article 16,19,23& 24 whereas, the Directive Principle of State Policy under
Article 39,41,42,43,43A which direct the government to frame the policies to uplift the condition of
workers.

India is also a signatory to many UN conventions and human rights which to aims to protect the
interest of the labour class in the world. These include the right to work of one’s choice, right
against discrimination, the prohibition of child labour, just and humane conditions of work, social
security, protection of wages, redress of grievances, right to organize trade unions, collective
bargaining, and participation in management.

Article 39 of the Constitution

The state shall take the necessary steps in securing:-

• All the citizens, equally, have the right to an adequate means of livelihood.

• The distribution of material resources should be in a way to serve the best common good

• The operation of the economic system does not result in the concentration of wealth.

• Equal pay for equal work

• No exploitation of workers includes men, women, and children. Abuse in terms of strength,
economic necessity and their age.

• Protection of children from any exploitation and abuse, children must be given opportunities and
facilities to develop in a healthy manner.

Article 41

The state shall take endeavor for securing the right to work, to education and to public assistance in
cases of unemployment, old age, sickness and disablement and in other cases of undeserved want.

Article 42

There is a separate legislation Maternity Benefit Act 1961, with an object to do social justice to
women workers. The legislation includes different kinds of wages to the women workers and special
allowances, benefits to the female wage earners before and after the childbirth.

Article 43 and 43 A
Article 42 aims at providing to all workers, agricultural, industrial or other a wage for securing a
standard life and enjoyment of cultural and social opportunities.

1. The state should also take measures, or make legislation, for the participation of workers in the
management of the industrial establishment.

Article 43-A was included in part of the Constitution by the 42nd amendment of the constitution. It
is also known as the Magna Carta of the Industrial Jurisprudence.

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Industrial Employment (Standing Orders) Act

The Industrial Employment (Standing orders) Act, was introduced for the employers in industrial
establishments to ensure the employment conditions under the establishments. Standing Orders
states the laws which govern the relationship between the employer and a workman in an industrial
establishment with includes the elements such as classification of workers, working hours,
attendance, suspension, termination etc. In this article, we look at the various aspects of the
Industrial Employment (Standing Orders) Act in detail.

Objective of the Act

The objective of the Industrial Employment (Standing Orders) Act, are as follows:

 To provide regular standing orders for workers, factories, and working relationship.
 To ensure that the employee recognises the terms and conditions of the employees and thus
to minimise exploitation of the workers.
 To promote industrial peace and harmony by supporting fair industrial practices.

Applicability of the Act

The Act applies to all industrial establishments involving 100 or more workers under Section 1(3).
Under section 2(i) Industrial Establishment are the following entities are listed below:

 An industrial establishment as specified in section 2(i) of Payment of Wages Act.

 Factory as explained in section 2(m) of Factories Act.
 Railway Industry
 Establishment of contractor who employs workers for fulfilling the contract with the owner
of an industrial establishment under section 2(e).
 Workman as specified under section 2(s) of Industrial Disputes Act. Under Section 2(i)
workman covers skilled, unskilled, manual or clerical work. However, workman does not
include employees engaged in a managerial or administrative capacity or supervisory
capacity and also it does not include workers subject to Army Act, Navy Act or Air Force Act
or police or prison services.

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Short note on – Decent work agenda – ILO - 8

The ILO's Decent Work Agenda

The ILO Decent Work Agenda is the balanced and integrated programmatic approach to pursue the
objectives of full and productive employment and decent work for all at global, regional, national,
sectoral and local levels. It has four pillars: standards and rights at work, employment creation and
enterprise development, social protection and social dialogue

Productive employment and decent work are key elements to achieving a fair globalization and
poverty reduction. The ILO has developed an agenda for the community of work looking at job
creation, rights at work, social protection and social dialogue, with gender equality as a crosscutting
objective.

The ILO Decent Work Agenda's areas of concern has been mentioned in other development targets
such as in reducing poverty and increasing access to education. The UN believes that the ILO Decent
Work Agenda plays an active role in achieving sustainable development.

Various actors can affect the provision of Decent Work, although existing conditions and incentives
do not always lend themselves to advancing the Decent Work Agenda.

To illustrate:

National governments create Decent Work through economic and industrial policies. However, the
forces of globalization – such as downward pressures on wages and reduced macroeconomic policy
flexibility – have diminished the ability of national governments to achieve this goal on their own.

Businesses create jobs from the local to international levels, and those operating across borders can
affect international wages and working conditions. Multinational enterprises typically locate
operations in countries where wages are at their lowest and so called "worker's rights" are less
prominent. This is antithetical to the Decent Work Agenda, although it does contribute to economic
development.

Trade unions assist employees in advocating for elements of Decent Work, from a so-called "living
wage" to health insurance to workplace safety standards. Trade unions face the challenge of
meeting their members’ immediate needs at home while supporting job creation and "workers’
rights" around the globe.

International financial institutions provide loans or other assistance to national governments, and
require loan recipients to implement certain policy measures. Existing programs generally exclude
employment targets and have even been known to reduce job creation in the short term, as jobs
which exist only through government market distortions are replaced with economically viable
employment.

Trade negotiators can forward the Decent Work Agenda globally by including labor standards in
trade agreements, while legislators (among others) can support their implementation. However,
many countries view the campaign for labor standards as an effort by other countries to make their
own industries more competitive.