Labour Law1

Labour Law
INTRODUCTION: Initially Labour law in India as labour legislation in order to protect the interests of British employers, then came the Factories Act. It is well known that Indian textile goods offered stiff competition to British textiles in the export market and hence in order to make Indian labour costlier the Factories Act was first introduced in 1883 because of the pressure brought on the British parliament by the textile magnates of Manchester and Lancashire. Thus we received the first stipulation of eight hours of work and other. To date, India has ratified 39 International Labour Organization (ILO) conventions of which 37 are in force. Of the ILO¶s eight fundamental conventions, India has ratified four ± Forced Labour 1930, Abolition of Forced Labour 1957, Equal Remuneration 1951, and Discrimination (employment and occupation) 1958. The Ministry of Labour has the responsibility to protect and safeguard the interests of workers in general and those constituting the deprived and the marginal classes of society in particular with regard to the creation of a healthy work environment for higher production and productivity. Trade Unionism: There are almost ten major central union organisations of workers based on different political ideologies. Almost every union is affiliated to one of these. These central organizations have state branches, committees, and councils from where its organisation works down to the local level. The first central trade union organisation in India was the All India Trade Union Congress (AITUC) in 1920. ILO Conventions Specific features of Conventions Conventions are instruments designed to create international obligations for the states which ratify them. In addition to its Conventions, the ILO has adopted a number of Recommendations, which are different from the point of view of their legal character. Recommendations do not create obligations, but rather provide guidelines for action. Conventions have a number of specific features, which can be grouped under four main ideas: 1. Conventions are adopted within an institutional framework. Thus, the adoption of Conventions does not follow the type of diplomatic negotiation which is usual in the case of treaties. They are rather prepared in discussions in an assembly that has many points in common with parliamentary assemblies. This also partly explains the fact that unanimity is not necessary for the adoption of Conventions. For the same reason, only the International Court of Justice can interpret the Conventions. The revision of Conventions is made only by the General Conference, which is the legislative body of the Organization. 2. The International Labour Conference, which adopts Conventions, is constituted by representatives of governments, employers and workers, each delegate being entitled to vote individually. 3. A two-thirds majority is sufficient for the adoption of a Convention, and governments should submit the Convention to their competent authorities for ratification, i.e. as a rule to their parliaments. Also, the governments have the obligation, when requested, to supply reports on various issues related to Conventions. (See overview of supervisory system) 4. Some Conventions include flexibility clauses, because they are generally directed towards countries with very different economic, social and political conditions, as well as different constitutional and legal systems. The flexibility clauses comprise options regarding the following: A. Obligations: possibility of choosing, at the time of ratification, by means of formal declaration, the extent of the obligations undertaken. (for .e.g. Social Security Convention, No. 102) B. Scope: Governments may decide for themselves, subject to certain consultations, what the scope of the Convention shall be (for. e.g. Conventions of minimum wage fixing machinery, Nos. 26 and 29), or they may be permitted to exclude certain categories of persons or undertakings (for e.g. Conventions on night work, Nos.41 and 89), or the definitions of persons covered may be based on a specified percentage of the wage earners or population of the country concerned (for e.g. many social security Conventions), or

exceptions are allowed for a certain part of the country (Various types of Conventions, for e.g. Nos. 24, 25, 62, 63, 77, 78, 81, 88, 94, 95, 96 etc.), or governments may themselves define a certain branch, industry or sector (for e.g. Weekly rest Convention, No. 106) C. Methods: State which ratifies a Convention shall take such action as may be necessary to make effective the provisions of such Convention, custom, administrative measures or, in certain circumstances, collective agreements. Core Conventions While ILO Conventions are not ranked in terms of their order of importance, there is an underlying hierarchy, which can be discerned. In the first category are Conventions dealing with freedom of association and collective bargaining (Conventions Nos. 87 and 89), forced labour (Conventions Nos. 29 and 105), non-discrimination in employment (Conventions Nos. 100 and 111) and child labour (Convention 138). These core Conventions were identified and given prominence in the Conclusion of the World Summit for Social Development in 1995. In the second category are technical standards, which establish norms to improve working conditions. Freedom of Association and Protection of the Right to Organize Convention, 1948) Establishes the right of all workers and employers to form and join organizations of their own choosing without prior authorization, and lays down a series of guarantees for the free functioning of organizations without interference by the public authorities. In December 1997, 121 countries had ratified this convention. Right to Organize and Collective Bargaining Convention, 1949 Provides for protection against anti-union discrimination, for protection of workers¶ and employers¶ organizations against acts of interference by each other, and for measures to promote collective bargaining. In December 1997, 137 countries had ratified this convention. Forced Labour Convention, 1930 Requires the suppression of forced or compulsory labour in all its forms. Certain exceptions are permitted, such as military service, convict labour properly supervised, emergencies such as wars, fires, earthquakes, etc. In December 1997, 145 countries had ratified this convention. Abolition of Forced Labour Convention, 1957 Prohibits the use of any form of forced or compulsory labour as a means of political coercion or education, punishment for the expression of political or ideological views, workforce mobilization, labour discipline, punishment for participation in strikes, or discrimination. In December 1997, 130 countries had ratified this convention. Discrimination (Employment and Occupation) Convention, 1958 Calls for a national policy to eliminate discrimination in access to employment, training and working conditions, on grounds of race, color, sex, religion, political opinion, national extraction or social origin and to promote equality of opportunity and treatment. In December 1997, 129 countries had ratified this convention. Equal Remuneration Convention, 1951 Calls for equal pay for men and women for work of equal value. In December 1997, 135 countries had ratified this convention. Minimum Age Convention, 1973 Aims at the abolition of child labour, stipulating that the minimum age for admission to employment shall not be less than the age of completion of compulsory schooling, and in any case not less than 15 years (14 for developing countries). In December 1997, 59 countries had ratified this convention.

FACTORY ACT, 1948: Definitions: Adult: means a person who has completed his eighteen year of age [Section 2(a)]; Adolescent: means a person who has completed his fifteenth year of age but has not completed his eighteenth year[Section 2(b)]. Child: means a person who has not completed his fifteenth year of age[Section 2(c)]. Competent person: in relation to any provision of this Act, means a person or an institution recognized as such by the Chief Inspector for the purpose of carrying out tests, examinations and inspections required to be done in a factory under the provisions of this act having regard to ± I. The qualifications and experience of the person and facilities available at his disposal; or II. The qualifications and experience of the persons employed in such institution and facilities available therein. With regard to the conduct of such tests, examinations and inspections and more than one person or institution can be recognized as a competent person in relation to a factory [Section 2(ca)]. Hazardous process: means any process or activity in relation to an industry specified in the first schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye products, wastes or effluents thereof wouldI. Cause material impairment to the health of the persons engaged in or connected therewith, or II. Result in the pollution of the general environment: Provided that the State Government may, by notification in the official Gazette amend the first Schedule by way of addition, omission or variation of any industry specified in the said Schedule [Section 2 (cb)]. Young person: means a person who is either a child or an adolescent [Section 2 (d)]; Day: mans under Section 2 (e), a period of twenty four hours beginning at midnight [Section 2 (e)]; Week: means a period of seven days beginning at mid-night on Saturday night or such other night as may be approved in writing for a particular area by the chief inspector of Factories Power: means electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency. Prime mover: means any engine, motor or other appliance which generates or otherwise provides power. Transmission machinery: means any shaft, wheel, drum, pulley, system of pulleys, coupling, clutch, driving belt or other appliance or device by which the motion of a prime-mover is transmitted to or received by any machinery or appliance. Factory: [Section 2 (m)]; Factory includes any premises including the precincts thereofI. Whereon ten on more workers are working, or wee working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on; or II. Whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on. But does not include a mine subject to the operation of the Mines Act, 1952 or a mobile unit belonging to the armed forces of the union or a railway running shed, or a hotel, restaurant or eating place Explanation I: For computing the number of workers for the purposes of this clause, all the workers in different groups and relays in a day shall be taken into account. Explanation II: For the purposes of this clause the mere fact that an Electronic Data Processing Unit or a computer unit is installed in any premises or part thereof, shall not be constructed to make it a factory if no manufacturing process is being carried on in such premises or part thereof.

Essentials elements of a factory: There must be premises. There must be a manufacturing process which is being carried on or is so ordinarily carried on in any part of such premises. There must be ten or more workers who are/were working in such premises on any day of the last 12 months where the said manufacturing process is carried on with the aid of power. But where the manufacturing process is carried on without the aid of power, the required number of workers working should be twenty or more. The following are not covered by the definition of µfactory¶: i. Railway running sheds, ii. Mines, iii. Mobile units of armed forces, iv. Hotels, eating places or restaurants. Manufacturing process : [Section 2(k)] : Making, altering, repairing, ornamenting, finishing , packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise, treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; or Pumping oil , water or sewage or any other substance; or Generating, transforming, transmitting power; or Composing types for printing, printing by letter press, lithography, photography or other similar process, or book binding; or Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or Preserving or storing any article in cold storage Statutory Agencies and their Powers far Enforcement of the Act: The state government assumes the main responsibility for administration of the act and its various provisions by utilizing the powers vested in them. Section 3 empowers the state government to make rules for references to time of day where Indian standard time, being 5-1/2 hours ahead of Greenwich Mean Time is not ordinarily observed. These rules may specify the area, define the local mean time ordinarily observed therein, and permit such time to be observed in all or any of the factories situated in the area. The state government assumes power under section 4 of the act to declare different departments to be separate factories or two or more factories to be single factory for the purposes of this Act. This power will be utilised by the state government either its own or an application made to it by the occupier. But no order could be made on its own motion unless & occupier is heard in this regard. In case of public emergency, section 5 further empowers the state government to exempt by notification any factory or class or description of factories from all or any of the provisions of this Act except section 67 for such period and subject to such conditions as it may think fit: provided no such notification shall be made exceeding a period of three months at a time. Explanation to section 5 defines public emergency as a situation whereby the, security of India or of any part of the territory thereof is threatened µ.7" whether by war or external aggression or internal disturbance. The state government carries out the administration of the Act through: i. Inspecting staff ii. Certifying surgeons iii. Welfare officers: Where in 500 or more workers iv. Safety officers: Where more than 1,000 workers

Approval, Licensing and Registration of Factories: Section 6 empowers the state government to make rules with regard to licensing and registration of Factories under the Act on following matters: 1. Submission of plans of any class or description of factories to the chief inspector or the state government 2. Obtaining previous permission of the state government of the chief or Inspector, for the site on which factory is to be situated and for construction or extension of any factory or class or description of factories. However, replacement or addition of any plant or machinery within prescribed limits, shall not amount to extension of the factory, if it does not reduce the minimum safe working space or adversely affect the environmental conditions which is injurious to health;

3. Considering applications for permission for the submission of plans and specifications: 4. Nature of plans and specifications and the authority certifying them; 5. Registration and licensing of factories; 6. Fees payable for registration and licensing and for the renewal of licenses; 7. License not to be granted or renewed unless notice specified under section has been given. Automatic Approval: If an application is made for the approval of site for construction or extension of the factory and required plans and specifications have been submitted by registered post to the state government or the chief inspector and if no reply is received within three months from the date on which it is sent the application stands automatically approved [section 6(2)] where the rules require the licensing authority to issue a license on satisfaction of all legal requirements/record seasons for refusal. License could not be refused only on a direction from government. S. Kunju v. kerala (1985 2LLI 106.) Appeal Against Refusal to Grant Permission: If the state government or chief inspector do not grant permission to the site, construction or extension of a factory, or to the registration and licensing of a factory, the applicant may within 30 days of the date of such refusal appeal to: i. The central government against the order of the state government ii. The state government against the order of any other authority. Notice by Occupier: This section imposes an obligation on the occupier of a factory to send a written notice, containing prescribed particulars, to the chief inspector at least 15 days before an occupier begins to occupy or use a premises as a factory and at least 30 days before the date of resumption of work in case of seasonal factories, i.e. factories working for less than 180 days in a year. Contents of Notice A notice must contain following particulars: 1. The name and situation of the factory. 2. The name and address of the occupier. 3. The name and address of the owner of the premises or building (including the precincts, etc., thereof) referred to in section 93. 4. The address at which communication relating to the factory should be sent. 5. The nature of manufacturing process to be carried on in the factory during next 12 months. 6. The total rated horse power installed or to be installed in the factory which shall not include the rated horse power of any separate standby plant. 7. The name of the manager of the factory for the purpose of this Act. 8. The number of workers likely to be employed in the factory. 9. Such other particulars as may be prescribed. Notice Where New Manager is Appointed: Whenever a new manager is appointed, the occupier shall send to the inspector a written notice and to the chief inspector a copy thereof, within seven days from the date on which such person takes over charge. General Duties of the Occupier: 1. Every occupier shall ensure, so far as is reasonably practicable, the health, safety and welfare of all workers while they are at work in the factory. 2. Without prejudice to the generality of the provisions of sub-section (1) the matters to which such duty extend shall include: a. The provisions and maintenance of plant and systems of work in the factory that are safe and without risks to health; b. The arrangement in the factory for ensuring safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances; c. The provisions of such information, instruction, training and supervisions as are necessary to ensure the health and safety of all workers at work;

d. The maintenance of all places of work in the factory in a condition that is safe and without risks to health and the provision and maintenance of such means of access to, and agrees from, such places as are safe and without such risks; e. The provisions, maintenance or monitoring of such working environment in the factory for the workers that is safe, without risks to health and adequate as regards facilities and arrangements for their welfare at work. 3. Except in such cases as may be prescribed, every occupier shall prepare, and as often as may be appropriate revise, a written statement of his general policy with respect to the health and safety of the workers at work and the organisation and arrangements for the time being in force for carrying out that policy, and to bring the statement and any revisions thereof to the notice of all the workers in such manner as may be prescribed. General Duties of Manufacturers etc: a. Ensure, so far as is reasonably practicable, that the article is so designed and constructed as to be safe and without risks to the health of the workers when properly used; b. Carry out or arrange for the carrying out of such tests and examination as may be considered necessary for the effective implementation of the provisions of clause (a); c. Take such steps as may be necessary to ensure that adequate information will be available. i. In connection with the use of the article in any factory; ii. About the use for which it is designed and tested; and iii. About any condition necessary to ensure that the article, when put to such use, will be safe, and without risks to the health of the workers. Section further provides that where on article is designed or manufactured outside India, it shall be obligatory on the part of the importer to see: a. That the article (including plant and machinery) conforms to the same standards if such article is manufactured in India, or b. If the standards adopted in the country outside for the manufacture of such article is above the standards adopted in India that the article conforms to such standards. For the above purposes, the concerned person may carry out or arrange for the carrying out of necessary research with a view to the discovery and so far as is reasonably practicable, the elimination or minimisation of any risk to the health or safety of workers to which design or article (including plant and machinery) may give rise. The section further provides that if research, testing, etc. has already been exercised or carried out, then no such research is required again. The above duties relate only to things done in the course of the business carried out by him, and to matters within his control. However I the person may get relief from the exercise of above duties If he gets an undertaking In writing by the user of such article to take necessary steps that the article will be safe and without risk to the health of the workers. Measures to be taken by Factories for health, safety and welfare of workers Safety: 1. Fencing of machinery a. every moving parts of a prime-mover and flywheel connected to a prime-mover or flywheel is in the engine house or not; b. head-race and tail-race of water wheel and water turbine; c. any part of a stock-bar which projects beyond the head stock of a lathe; d. every part of an electric generator, a motor or rotary convertor or transmission machinery unless they are in the safe position; e. every dangerous part of any other machinery unless they are in safe position. 2. Safety Measures in case of work on or near machinery in motion Restriction on Woman or Young Person to Work an Such Machines.

3. Employment of Young Persons on Dangerous Machines, Striking Gear and Devices for Cutting Off Power, Self-acting machines 4. Prohibition of employment of women and children near Cotton Openers Lifting machines, ropes, chains and Lifting Tackles Pressure plant Excessive weights 5. Precautions in case of fire Welfare: There should be Washing Facilities, Facilities far Sitting, First-aid Appliances, Canteens, Shelters, Rest Rooms and Lunch Rooms, Crèches, Emergency Standards, Permissible Limits of Chemical and Toxic Substance, Workers Participation in Safety Management, and it is a right of Workers to Warn about Imminent Danger.

THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 This act not apply where Chapter VII of the Bombay Industrial Relations Act, 1946, (Bom. Act II of 1947) apply; or Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (M.P. Act 26 of 1961) apply. Application of Model Standing Orders to Every Industrial Establishment: Where this Act applies to an industrial establishment, the model standing order for every matter set out in the Schedule (see*) applicable to such establishment shall apply to such establishment from such date [ as the State Government may by notification in the Official Gazette appoint in this behalf: Provided that nothing in this section shall be deemed to affect any Standing Orders which are finally certified under this Act and have come into operation under this Act in respect of any industrial establishment before the date of the coming into force of the Industrial Employment (Standing Orders) (Bombay Amendment) Act, 1957] [2. Notwithstanding anything contained in the proviso to subsection (1) model standing orders made in respect of additional matters included in the Schedule after the coming into force of the Act referred to in that proviso (being additional matters relating to probationers or badlis or temporary or casual workmen) shall, unless such model standing orders are in the opinion of Certifying Officer less advantageous to them than the corresponding standing orders applicable to them under the said proviso, also apply in relation to such workmen in the establishments referred to in the said proviso from such date as the State Government may, by notification in the Official Gazette, appoint in this behalf.] Submission of Amendment: [Within six months £tom the date on which the model standing orders apply to any industrial establishment under Section 2A, the employer or any workman employed therein may submit to the Certifying Officer five copies of the draft amendments for adoption in such industrial establishment: Provided that no amendment which provides for the deletion or omission of any rule in the model standing orders relating to any matter set out in the Schedule shall be submitted under this section.] The [draft amendments] submitted under this section shall be accompanied by a statement giving prescribed particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to which they belong. Subject to such conditions as may be prescribed, a group of employers in similar industrial establishments may submit a joint [draft of amendments] under this section. Certification of Amendments: 1. On receipt of the draft under Section 3, the Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed [or the employer, as the case may be,] together with a notice in the prescribed form requiring objections, if any, which the workmen, [or employer] may desire to make to the [draft amendments] to be submitted to him within fifteen days from the receipt of the notice. 2. After giving the employer, [the workmen submitting the amendment and the trade union or such other representatives of the workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall decide whether or not any modification of [the draft submitted under sub-section (1) of Section 3 is necessary,] and shall make an order in writing accordingly. 3. The Certifying Officer shall thereupon IO [certify the draft amendments] after making any modifications therein which his order under sub-section (2) may require, and shall within seven days thereafter send copies of the 11 [model standing orders together with copies of the certified amendments thereof,] authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the trade union or other prescribed representatives of the workmen. The submission that the Standing Orders are sacrosanct and engroceable regardless of the developments in the parallel proceedings unless and until necessary change has been certified by the authority under the Act would be too technical an interpretation and would therefore not is acceptable.

Date of Operation of Standing Orders: Standing Orders [or amendments] shall, unless an appeal is preferred under section 6, come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent under sub-section (3) of section 5, or where an appeal as aforesaid is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority are sent under sub-section (2) of section 6. Register of Standing Orders [and Model Standing Orders together with All Certified Amendments]: A copy of all standing orders µ[or model standing orders together with all the amendments] as finally certified under this Act shall be filed by the Certifying Officer in a register in the prescribed form maintained. for the purpose, and the Certifying Officer shall furnish a copy thereof to any person applying therefor on payment of the prescribed fee. Posting of Standing Orders l[and Model Standing Orders together with All Certified Amendments]: The text of the standing orders ([or model standing orders together with all the amendments] as finally certified under this Act shall be prominently posted by the employer in English and in the language understood by the majority of his workmen on special board to be maintained for the purpose at or near the entrance through which the majority of workmen enter the industrial establishment and in all departments thereof where the workmen are employed. Duration and Modification of Standing Orders [or the Amendments]: Standing Orders [or the amendments] finally certified under this Act shall not, except on agreement between the employer and the workmen [ or a trade union or other representative body of the workmen] be liable to modification until the expiry of six months from the date on which the standing orders [ or the amendments] or the last modifications thereof came into operation [and where model standing orders have not been amended as aforesaid, the model standing orders shall not be liable to such modification until the expiry of one year from the date on which they were applied under section 2-A]. [2. Subject to the provisions of sub-section (1), an employer, or workman [ or a trade union or other representative body of the workmen] or any prescribed representatives of workmen desiring to modify the standing orders or the model standing orders together with the amendments, as finally certified under this Act, or the model standing orders applied under section 2A, as the case may be, shall make an application to the Certifying Officer in that behalf, and such application shall be accompanied by five copies of the standing orders, or the model standing orders, together with all amendments thereto as certified under this Act or model standing orders in which shall be indicated the modifications proposed to be made and where such modifications are proposed to be made by agreement between the employer and workmen [or a trade union or other representative body of the workmen] a certified copy of the agreement shall be filed along with the application]. The word µmodification¶ in Sec. 1.0(2) should not be given a restricted meaning, as i´, implying only minor changes, hence, even an application for deletion of a clause can be ³I deemed as an application for modification of the Standing Orders. 3. The foregoing provisions of this Act shall apply in respect of an application under sub-section (2) as they apply to the certification of the first [amendments]. [4. Nothing contained in sub-section (2) shall apply to an industrial establishment in respect of which the appropriate Government is the Government of the State of Gujarat] *Matters to be provided in Standing Orders 2 [Model Standing Orders and Amendments] under this Act: 1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers or badlis, [1-A. Workmen¶s tickets and registers] 2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and I. wage rates. 3. Shift working. 4. Attendance and late coming. 5. Conditions of, procedure in applying for, and the authority which may grant leave and holidays. 6. Requirements to enter premises by certain gates, and liability to search. 7. Closing and re-opening of sections of the industrial establishment and temporary stoppages of work and the rights and liabilities of the employer and workmen arising there from]

[7-A. Closing and re-opening of the entire industrial establishment or departments thereof and the rights and liabilities of the employer and workmen arising there from] 8. Termination of employment and the notice thereof to be given by employer and workmen. 9. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct. 10. Means of redress for workmen against unfair treatment or wrongful exaction by the employer or his agents or servants. [10-A.Age for retirement or superannuation] [10-B. Medical examination (including provision for bearing expenses therefor)] [10-C. Employment or re-employment for probationers or badlis or1emporary or casual workmen, and their conditions of service] 11. Any other matter which may be prescribed. Additional matters to be provided in Standing Orders relating to all industrial establishments in coal mines by Central rule 1. Medical and in case of accident; 2. Railway travel facilities; 3. Method of filling vacancies; 4. Transfers; 5. Liability of Manager of the establishment or mine; 6. Service certificate; 7. Exhibition and supply of Standing Orders.´ Additional matters to be provided in the Standing Orders relating to all industrial establishments by Central rule 1. Service record-matters relating to service card, token tickets, certification of service, change of residential addresses of workers and record of age; 2. Confirmation; 3. Age of retirement; 4. Transfer; 5. Medical aid, in case of accidents; 6. Medical examination; 7. Secrecy; 8. Exclusive Service. Violation of any of Act attract fine which may extend to five thousand rupees or continuing offence with a further fine which may extend to two hundred rupees every day and Standing order attract Fine which may extend to one hundred rupees and 25 rupees every day

TRADE UNION ACT, 1926: Trade Union is a workers organization which represents its members and which aims to improve things such as their working condition and pay. Any seven or more members of a trade union may apply for registration by subscribing their names to the rules of trade union and complying with other requirements in relation to registration under the act. Every application for registration shall be made to the registrar along with the fee as prescribed under regulation 8 (Rupees five at present) and shall be accompanied by a copy of the rules of the trade union and a statement of all particulars as prescribed. Any person who has attained the age of fifteen years may be a member of a registered Trade union subject to any rules of the Trade union to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and executive all instruments and give all a quittances necessary to be executed or given under the rules. Definition: Appropriate government: In this act, the term µappropriate government means in relation to trade unions whose objects are not confined to one state, the central government, and in relation to other trade unions, the state government. Executive: section 2(a) Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted. Office bearer: section 2(b) Office bearer in the case of a trade union includes any member of the executive thereof, but does not include an auditor. Registered office and registered trade union: section 2(d) and 2(e) registered office means that office of a trade union which is registered under this act as the head office thereof and a registered trade union means a trade union registered under this act. Registrar: a) a registrar of trade union appointed by the appropriate government under section 3 and includes any additional or deputy registrar of trade union; and b) in relation to any trade union, the registrar appointed for the state in which the head or registered office, as the case may be, of the trade union is situated. Trade Union: section 2(h) Trade union means any combination, whether temporary or permanent formed primarily for the purpose of a) regulating the relation: (1) between workmen and employers or (2) between workmen and workmen, or (3) between employers and employers; OR b) for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions. Appointment of registrars: a) The appropriate government shall appoint a person to be the registrar to trade unions for each state. b) The appropriate government is also empowered to appoint if it thinks fir, additional and deputy registrar. Such persons will function under the superintendence and direction of the registrar who may define the local limits within which each one will operate. c) Where an additional or deputy registrar exercises and discharges the powers and functions of a registrar in an area within which the registered office of a trade union is situated, the additional or deputy registrar shall be deemed to be the registrar in relation to the trade union for the purposes of this act. Registration of trade unions: As is evident from the preamble it that the act is enacted of provide for registration of trade unions, the act lays done in a comprehensive manner the procedure for registering a trade union. However, it should be noted that registration of trade union is not mandatory under the act. In view of a number of immunities granted to a registered trade union from civil and criminal proceedings, registration of trade unions is desired. The procedure for registration enumerated in the following Para graphics carved out form the provisions of the trade unions act and the central trade union regulations, 1938, which are in relation to a trade union

whose objects are not confined to one state. The procedure for registration in relation to other trade unions can be ascertained from the provision of the trade unions act, 1926 and the regulations made by the appropriate governments. Rules of trade union: According to section 6 of the trade unions act, no trade union shall be entitled to registration unless the executive thereof is constituted and the rules thereof provide for the matters stipulated in section 6. A trade union cannot be registered unless its executive has been constituted according to the law and the rules thereof provide for the following matters: a) The name of the trade union: b) The whole of the objects for which the trade union has been established; c) The whole of the purposes for which the general funds of the trade union shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this act. d) The maintenance of a list of the members of the trade union and adequate facilities for the inspection thereof by the office-bearers and members of trade union; e) The admission of ordinary members who shall be persons actually engaged or employed in an industry in an industry with which the trade union is connected, and also the admission of the number of honorary or temporary members as office bearers required under section 22 to form the executive of the trade union; e) The payment of a subscription by members of the trade union which shall not be less than twenty five paisa per month per member. f) the conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members; g) The manner in which the members of the executive and the other office bearers of the trade union shall be appointed and removed; h) The manner in which the members of the executive and other office bearers of the trade union shall be appointed and removed. i) The safe custody of the funds of the trade union, and annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office bearers and members of the trade union; and j) The manner in which the trade union may be dissolved. In the case of Trilok Nath Tripathi v. Allahabad Division bench, A.I.R. 1957 all 234, it was observed that section 6 requires that no registration can be allowed unless certain conditions given in this section are fulfilled. Rules framed under the constitution of any trade union do not get any statutory force. It is correct that existence of such rules framed to comply with requirements of union. It is only in the nature of contract binding on the members of union. Any breach of such rules cannot be enforced by a writ of mandamus under Article 226 of the constitution. The remedy of the aggrieved party is by way o suit. Certain membership rights: i) Rights of minors to membership of trade unions: section 21 Any person who has attained the age of fifteen years may be a member of a registered Trade union subject to any rules of the Trade union to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and executive all instruments and give all a quittances necessary to be executed or given under the rules. ii) Rights to inspect books of Trade union : section 20 The account books of a registered Trade union and the list of members there of shall be open to inspection by an Office bearer or member of the Trade union at such times as may be provided for in the rules of the Trade union. Dissolution of Trade union: In case a registered Trade union is dissolved, a notice signed by members and the secretary of the union shall be given to the registrar with 14 days of such dissolution. If the dissolution has been effected in accordance with the rules he shall register the same and it will have effect from the date of such

registration. On dissolution where the rules do not provide for distribution of the funds of the Trade union, the registrar shall distribute the fund amongst member in such manner as may be prescribed under the Trade union regulations, the registrar shall divide the funds in proportion to the amounts contributed by the members by way of subscription during their membership (regulation 11) Offences and Penalties: 1. If default is made of the part of any registered Trade union in given any notice or sending any statement or other documents are required by or under any provision of this Act, every office bearer or other person bound by the rules opt the trade union to give or send the same, or if there is no such office bearer or person, every member of executive of the trade union, shall be with the fine which may extend it five rupees and in the case of continuing default, with aqn additional fine which may extend to five rupees for each week after the first during which the default continues. however the aggregate fine should not exceed fifty rupees. 2. A person who willfully makes, or causes to be made, any false entry in, or any commission from, the general statement required by section 28 or in or from any copy of rules or of alterations of rules sent to the registrar under the section, shall be punishable with fine which may extend to five hundred rupees Amalgamation of trade unions: Any two or more registered Trade unions may become amalgamated together as one Trade union with or without dissolution or division of the funds of such trade unions or either or any of them

INDUSTRIAL DISPUTES AND INDUSTRIAL DISPUTE ACT: The ³Industrial Disputes´ are disputes relating to an industry which could leads to settlement arrived at in the course of conciliation proceedings Any dispute or differences between Employer and Employer, Employer and Workmen and Workmen and workmen connected with Employment or Non - employment or condition of Labour of any person is termed as ³ Industrial Dispute´ under the Act. In fact, the term ³Industrial Dispute´ plays very important and vital or key role in the entire industrial jurisprudence. It is therefore, very necessary that the term is understood in its fullest sense and concept. The term ³Industrial Dispute´ has remained unchanged from the time it was defined in the Act. The Term can be understood in its various facets and for this reason, it can be said that the term has its four facets, viz a. Factum of Dispute b. Parties to Dispute c. Subject matter of dispute and d. Dispute must be relating to an Industry. ii. Factum of dispute: It is undoubtedly needless to observe that unless there is a dispute or difference of any sort, no legal machinery need to take a start! Therefore, dispute/ difference is the first and pre condition stipulated in the definition under the Act For dispute or differences to arise, it is not necessary that the parties should come to blows but at the same time a mere personal quarrel or a grumbling will not amount to dispute or differences within the four corner of the definition (C.J. Sambhunath Goyal v/s Bank of Baroda, 1978 I LLJ 484). It must be clearly understood that not all sorts of dispute or difference are included in the definition in the Act. µThe only differences or disputes which are within the fold of the definition given in Section 2(k) of the Act are only those disputes, or differences which bear upon the (1) relationship of Employers and Employers or Employers and Workmen or workmen and workmen and (2) condition of Labour. Thus the inter-se seniority dispute between two workmen is purely an individual dispute and it cannot be treated as industrial dispute if other employees are not concerned iii. Parties to dispute .´The Act provides that any dispute or differences (a) between Employers and Employers (b) Between Employers and Workmen or (c) between workmen and workmen can be taken up for conciliation or adjudication, as the case may be, if necessary. However, in common parlence, the term ³industrial disputes´ is always taken to mean the dispute between Employers and Workmen and dispute between no other parties, namely between Employers and Employers or between workmen and workmen. There are, therefore, few case laws on disputes between workmen and workmen or between Employers and Employers. iv. Subject matter: The expression ³dispute or difference´ means controversy connected with (a) the Employment or non-employment or (b) with the terms of employment or (c) the conditions of labour of any person. Further, it must also be a grievance felt by workmen which the Employer is in a position to remedy or set right the definition further shows that certain types of disputes can never fail within its ambit. For example, who is to be elected as the President of the Union, cannot be held to come under the definition of the expressions ³Industrial Dispute´ because, it is not at all connected with the employment or no employment or with the terms of employment or with the condition of labour. Similarly the dispute with regard to demotion cannot be raised even under Section 2A of the Act to constitute an industrial dispute. So also when there is a dispute with regard to seniority inter-se it cannot be treated as ³Industrial Dispute´, if a settlement has arrived at between the parties, there cannot arise any ³Industrial Dispute´ which can form a subject matter of a reference before the Tribunal. When the dispute of individual workmen are taken up by any union of which he or they are members and when the demand is made by union on their behalf, it becomes ³Industrial Dispute´. When employees made demand that employees working in higher promotion be confirmed, it was contended that it was not in ³Industrial dispute1*. The supreme court held that although promotion is entirely at the sole discretion of the employer but the employees were not demanding

promotion, what they were demanding was that those employees who have already been promoted they should be categorised as permanent or confirmed. As such, it was clearly an industrial dispute. [Workmen of Hindustan Lever u/s HL Ltd, 1984 1 LLN 460 (SC)]A v. When does Industrial dispute arise : For existence of an industrial dispute, there should be a demand by workmen and refusal to grant it by the management. How the demand should be raised cannot be a legal notion of fixity and rigidity. The grievance of the workmen and the demand for its redressal must be communicated to the management. The means and mechanism of communication adopted are not matters of much significance so long as the demand is that of workmen and it reaches the management {RarnkrishnaMills (Coimbatore) Ltd., v/s Government of Tamilnadu, 1984 II LLJ 259 (Madras)] In National Engineering Industries Ltd. v/s State of Rajasthan,2000 I CLR 389, there were Trade Unions, i.e. Labour Union, Workers Union and the Staff Union. The Labour Union has majority of the Workers on its roll- It was the recognised Union. However, all the three unions, raised a Charters of Demands, which were identical in almost all respect. Conciliation Proceedings under the Act were initiated during which time, settlement was reached with the Labour Union and the staff Union. Since no settlement was arrived at in respect of the Charter of Demands raised by the Workers Union, the Conciliation Officer submitted its Failure Report; however, the appropriate Government took no decision on it. The Workers Union thereupon moved the High Court, which directed the Government to make the reference. However, before the Order of the High Court, the appropriate Government took the decision and made a reference on the industrial dispute touching the Charter of Demands of the Workers Union. This Order of Reference made by the appropriate Government was challenged in the High Court before the Single Judge and in appeal before the Division Bench but without success. The apex Court held that in view of the settlement of the µindustrial dispute¶ touching the Charter of Demands, there was no µindustrial dispute¶ under the Act and therefore, the Appropriate Government had no jurisdiction to make the reference. vi. Written Demand not necessary : A Demand need not be in writing to constitute an industrial dispute. The Act nowhere contemplates that the industrial dispute would come into existence in any particular specific or prescribed manner. For coming into existence of an industrial dispute, a written cause is not a ³Sine qua non´ unless of course in the case of public utility service, because Section 22 of the Act forbids going on strike without giving a (strike) Notice. [Shambkunath Goyal vis Bank of Baroda, 1978 I LLJ 484, Ramkrishna Mills (Coimbatore) Mills Ltd v/s Govt. of Tamilnadu, 1984 II LLJ 259] vii. Does it mean ³Collective Dispute´; The term ³Industrial Dispute´ conveys the meaning that dispute must be such as would ³affect large groups of (1) workmen and the (2) employers, ranged on opposite side´ [D.N. Benarji v/s P.R. Mukharjee, 1953 I LLJ 195, The obiter was cited with approval in News Papers Ltd. v/s I.T. 1957 II LLJ 6 (by SC}]. A collective dispute, however does not mean that ail workmen or a majority of them should sponsor and sport the dispute. In fact, there is nothing in the Act to require the dispute to be raised by all the workmen of the industry or by every one of them or even by a majority of them. It is enough if the controversy is between Employer on one side and the workmen on the other. So also, there is nothing in the Act to require that workmen raising the controversy should form a majority of the employees or the controversy affects, or will affect the interest of workmen as a class. The law envisages that in the interest of peace, the industrial dispute should be examined and decided in the manner laid down in the Act {Indian Oxygen Ltd. vis Us workmen 1979 LIC 585 (SC)], it is not necessary that the dispute should have been espoused only by a recognised union. It can be espoused by unrecognised union also [State of Bihar v/s Kripa Shankar Jaiswal, AIR 1961, SC 304]. In the case of DA.C.C. v/s workmen, AIR 1960 SC 777. Pradip¶Lamp Works vis Workmen 1970 ILLJ 491, Tata Chemicals v/s Workmen 1978I LLJ 22(SC)], it was held that even a minority union canraise the dispute. However, when the agenda of the meeting in which the cause of individual workmen was not produced, there was no other record to show that the cause of the workmen was taken up save and except the oralevidence of the Secretary. It was held that the cause of individual workman was not espoused to treat

it as an industrial dispute. It was held that, at least, the Resolution espousing the cause of workmen was necessary [BombayUnion Journalists v/s The Hindu, AIR 1963 SC 318]. However, in the case of Workmen v/s Rohtak General Transport Company1962 I LLJ 634 & 1975 LIC 838] it was held that relevant documents showing espousal of dispute by union need notbe examined too technically. The Tairvi´ by the union, in conciliation is sufficient proof to show espousal of the cause[WIMCO o/s its workmen, AIR 1970 SC 1205].It is not necessary that the same union should remain in charge of that dispute till adjudication because it is not necessary thatthe dispute must be espoused or conducted only by a registered trade union. Therefore, it is necessary to bear in mind the distinction between ³espousal´ and ³representation´. The emphasis is on espousal and not on representation. Thus it is not necessary that the dispute must be espoused or conducted only by a registered trade union. Even if a union ceases to be a registered trade union that would not affect maintainability of the order of reference [Management of Gammon (India) Ltd. v/s State of Orissa 1974 II LLJ 34]. The new Union can takeover and conduct the matter further [Ramlal Guramal TextileMills v/s State of Punjab, 1958 II LLJ 245].In Mukund Ltd. v/s M.Staff & Officers Association, 2000 I CLR 707, the question before the Court was whether employees falling in the category of ³Workman´ under the ID Act can espouse the cause of the non-workmen working in the same establishment. The Court held that they can because they have substantial interest in the subject matter of the dispute and that there is a community of interest. As such, the reference was validity made. Settlement - Binding - not Binding: If a copy of the settlement is not forwarded to authorities prescribed by rule 58 (4) of the Central Rules that will not have any effect on the validity of the settlement.

1. ³Settlements´ arrived at in the course of conciliation and 2. Settlements´ arrived at privately or otherwise than in the course of conciliation.
STRIKES: Strike is concerted refusal to work on the part of workmen who are in a particular vocational area. The workers in a democratic state have a right to strike to withhold their labour in order to express their grievance or to make certain demands. Thus a strike is a necessary safety valve in industrial relations. Forms of Strikes are Go-slow, Legal and Illegal Strike, Justified & Unjustified Strike. Prohibition of Strikes in Public Utility Service Strike Notice: Sub-section (1) requires a 14 days Strike Notice in public utility services. It says that: i. no person employed in public utility service shall go on a strike in breach of contract: ii. without giving strike notice. iii. within 6 weeks of such notice. iv. within 14 days of giving such notice. v. before the expiry of the date of strike specified in notice; or vi. during the pendency of any conciliation proceedings and 7 days after conclusion of such proceedings. LOCK-OUT: Strike is cessation of work by employees, the Lock-out is cessation of work by the Employer. Just as Employees have a right not to sale their Labour, the same way the Employer has a right not to buy it, as a measure of setting the industrial dispute. When the Employer closes temporarily his place of Employment in order to force his employees to accept a compromise favourable to him on an industrial dispute raised by his employees, it is a µLock-out¶. Lock-out, When Legal: The Act treats strikes and lock-out on the same basis; it treats one as the counter part of the other. (Mohammed Sumsuddin, 1956 I LLJ 575), the circumstances under which the legislature has banned strike, it has also at the Same time banned the lock-out. Thus what holds good-bad; legal-illegal, justified unjustified for strikes, holds the same for the lock-out. As such, the provisions of the Act which prohibit the strike also prohibits the lock-out.

The object and reasons for which the Lock-out are banned or prohibited are the same for which strikes are banned or prohibited. It is because the Employer and the Employees are not discriminated in their respective rights in the field of industrial relationship between the two. As such, lock-out if not in conflict with Section 22 and 23 may be said to be legal or not legal. Sections 24(1) (iii), 10(3) and 10A (4A) similarly controls the lock-out. A lock-out in consequence of illegal strike is not deemed to be illegal. But if lock-out is illegal, Section 26(2), 27 and 28 will come in operation to deal with the situation. The Act does not lay down any guidelines to settle the claims arising out of illegal lock-out. The courts, therefore, have adopted the technique of apportioning the blame between the Employer and employees. This once again brings to the fore the concept of justifiability of lock-out. If strike is unjustified followed by a justified lock-out, the workmen will get no wages at all conversely if strike is legal and lock-out is unjustified, the workmen will get the full wages for the period of strikelock-out. However, where strike is illegal followed by an illegal lock-out, the question of apportionment will arise (India Marine Services (P) Ltd. vis Their Workmen, AIR 1963 SC 528). Relying upon this, the apex court granted half wages. In this case, in which the Industrial Tribunal had held chat strike was unjustified, so the lock-out was justified on the following day but its continuance was not justified. In Statesman Ltd. v/s Their Workmen, AIR 1976 SC 758, the apex court refused to interfere in the Award of Industrial Tribunal in which the Tribunal had awarded 50% wages for the lock-out period. The Tribunal has held both the parties equally responsible. The apex court observed that in between lies a grey of twilight Law. Strictly speaking the whole field is left to the ² judicious discretion of the Tribunal, Where the strike is illegal and sequel of lock-out legal, we have to view the whole course of² development and not stop with examining the initial legitimacy. If one side or the other behaves unreasonably or over-all interest of good industrial relations warrant the Tribunal making such direction regarding strike period wages will meet with justice, fair play and pragmatic wisdom; there is no error in doing so. This power of Tribunal is flexible. In Engineering Mazdoor Sabha vis S. Taki Bilgrami, 1971 I LLJ 71, the Bombay High Court held that it is permissible for the Employer to prove misdemeanor and misconduct of employees sufficient to absolve him from the lock-out liability to pay wages for the period of illegal lock-out. Thus according to Bombay High Court, merely because a lock-out is illegal will not ipse-dixit result in payment of wages to the workmen but the Employer can take the opportunity to prove disentitlement of workmen in a case of reference made to industrial tribunal for adjudication on a demand for wages for the period of lock-out. Penalties for strike and Lock-out: Section 26 prescribes - penalty for, both, strike as well as lockout. However, before any - punishment is imposed under this Act or rather under this Section, it must be proved beyond all reasonable doubt that: 1. A workman has in fact commenced or continued or has otherwise acted in furtherance of a strike OR in case of a lock-out an Employer has commenced or continued or has acted in furtherance of- a lock-out; and 2. the strike or lock-out is illegal. The illegality must be proved strictly with reference to the provisions of the Act and the mens-rea on the part of a workman or an employer is wholly irrelevant and immaterial. These two ingredients must co-exist and only if these two ingredients are present then Workman shall be punishable with imprisonment for a term upto one month or with fine which may extend upto Fifty Rupees or with both. a. Employer shall be punishable with imprisonment for a term which may extend to Rupees one month or with fine which may extend to Rupees one thousand or both. LAY-OFF: When the employer decides to discontinue his business forever it is called as Closure. But when he decides to discontinue his business, not forever but for a short while, in order to tide over his difficulties, it cannot be called as closure. Nevertheless, during this period also the employer discontinues

to employ his labour force. Such a discharge of labour-force, (for a temporary period when the employer has suspended his business activities) is called as lay-off. Refusal to Give Work: The Employer¶s refusal to give work must be for: · shortage of coal · shortage of power (Electricity) · shortage of raw material · accumulation of stocks · break down of machinery · natural calamity - Force-Major and any other connected reason.

Contract of Employment: In lay-off, the contract of employment goes under suspended animation or the relationship is kept in cold storage. The workman continues to be on the muster roll but the employer suspends the contract for the time being. The relationship (of master and servant) is resumed as soon as the work is resumed by the employer. Thus, the lay-off is a temporary suspension of work and it is resumed as soon as the circumstances permit the employer to do so. It means that the Employer cannot keep away the workman for an indefinite period in the garb of lay-off or cannot breach the contract of employment. But period can have treated as temporary and what period can be treated as long or indefinite will depend upon the facts of each case and the Act is completely silent on this issue.
RETRENCHMENT: Retrenchment means the termination by the Employer of the services of a workman for any reason whatsoever.

Retrenchment Compensation: Section 25 F: 1. One Month¶s Notice to the workman who is to be retrenched must be given. 2. Notice of Retrenchment must be in writing. 3. Reasons for retrenchment must be given in the Notice of Retrenchment to the workman. 4. Notice period of one month must have expired unless one month¶s wages must have been paid in lieu of Notice of one month to the workman. 5. (Payment to workman must have been effected at the time of retrenchment and not after the retrenchment. 6. Notice in prescribed manner must have been served upon the appropriate Government or such other authority as may have been specified by the appropriate government.
Clause (b) Lays down that a workman shall be: i. paid compensation ii. at the time of retrenchment (and not after the retrenchment) in. calculated at the rate of 15 days (average pay) iv. for every completed year of ³continuous service´ or v. any part in excess of six months The average pay has been defined in Section 2 (aaa). It means if in one month, a workman¶s pay was Rs.1000/- in second month, it was Rs.1400/- and in the third month, it is only Rs 900/-The Employer has to take the average pay and not the last drawn wages. As such in given illustration, the average pay will work out to be [1000 + 1400 + 900 = 3300 - 3] Rs. 1100/- p.m. Undoubtedly, it may work out against the workman also, if in first month, wages are Rs.900/- in the second month, it is Rs.1000/- and in the third month it is Rs. 1400/- but the workman will be paid at the rate of Rs. 1100/- (it being his average wages). CLOSURES: In the case of closure, the Employer closes down his business permanently, finally and irrevocably. There is no intention on his part to restart the work. The right of closing down is as much a

fundamental right as to ³carry on business´. The Notice of termination has to be given individually or collectively but a notice is a must. Closer can be ³Partial Closure´ and ³Closure by Stages´. It is a fundamental right, for payment of money to those employees who are thrown out of employment on account of closure. For computing quantum of money, on closure, has adopted the same methodology as adopted for the retrenchment. Provision to exception is there for the Unavoidable circumstances beyond the control of the employer and if mine, If minerals get exhausted and employer ensure alternative employment on same terms and condition and remuneration is given to workman, Services remain uninterrupted and in subsequent closure, employer undertakes to pay closure compensation for the throughout period - on the basis of continuous service. Employer shall give Notice at least 60 days before intended closure failing attracts penalty of imprisonment for a term upto 6 months or fine upto Rs. 5000/or both. Special Provisions for Mines: Sub-section 1-A provides that in case of Mines, workmen will not be given closure compensations if minerals get exhausted and as a result, the mining operations have to be discontinued. This benefit is available only on conditions : 1. If minerals get exhausted and 2. Employer fulfills three conditions a. alternative employment on same terms and condition and remuneration is given to workman b. Services remain un-interrupted and 3. in subsequent closure, employer undertakes to pay closure compensation for the throughout period - on the basis of continuous service. Special Provisions for Building Industry: The second exception to the general rule of closure compensation is laid down in sub-section 1-A. It is applicable to undertakings set up for construction of 1. Buildings 2. Bridges 3. Roads 4. Canals 5. Dams or 6. Construction work which is over on completion of job. The benefit of this exception is available only when the undertaking is closed down within two years from the data of its set up. However, if no closure within two years then workmen will be entitled to the closure compensation at the same rate as prescribed under sub-section (1), if an undertaking takes up construction work wherever available, and if it deploys local persons for local work then it has freedom of discontinuing the local staff and the test of Unity of ownership, unity of management or unity of control on all different local units is not available. As such, the workmen of local units, if retrenched, do not have any right to demand the benefits flowing from this Section [Hindustan - Steel Works, Construction Ltd. v/s HSWC Employees Union, 1995 LIC 1594, (SC)]. Protected Workmen: Member of the executive (Managing) committee or other office, bearer of a Registered Trade Union and their number are 5% of total workmen with Minimum 5 and Maximum 100.

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 Applied 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, to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen. Registration of Establishments should be done who are employing contract labour and contractor licensing done through the prescribed process. Welfare and Health measure of Contract Labour should be maintained as prescribed. Contractor is responsible for payment of wages then representative duly authorized and finally principal employer liable. The Advisory Boards: 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 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 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, bought 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 Establishments Employing Contract Labour: Appointment of registering officers: The appropriate Government may, by an order notified in the Official Gazette,a. appoint such persons, being Gazetted Officers of Government, as it thinks fit to be registering officers for the purposes of this Chapter; and

b. Define the limits, within which a registering officer shall exercise the powers conferred on him by or under this Act. 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 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 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 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, shalla. 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. Contract labour cannot become employees of principal employer merely because contractor or employer has not obtain license or registration respectively. Dinanath v. National Fertilizers Ltd. 1992 I LLJ 289 (S.C.): 1992 (64) FLR 39: 1992 I CLR 1: 19921 LLN53 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. Licensing of Contractors: Appointment of Licensing Officers The appropriate Government may, by an order notified in the Official Gazette,a. appoint such persons, being Gazetted Officers of Government, as it thinks fit to be licensing officers for the purposes of this Chapter; and b. define the limits, within which a licensing officer shall exercise the powers conferred on licensing officers by or under this Act.

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 license issued in that behalf by the licensing officer. 2. Subject to the provisions of this Act, a license under subsection (I) 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. Contractor cannot be registered as a Contractor as well as principal employer Gammon India Ltd. Bombay v. Assistant Labour Commissioner, 1976 I LLN 410 (Born. DB): 1976 LlC 745. 13. Grant of Licenses 1. Every application for the grant of a license under sub-section (I) of section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of process, operation or work for which contract labour is to be employed and such other particulars as may be prescribed. 2. The licensing officer may make such investigation in respect of the application received under subsection (1) and in making any such investigation the licensing officer shall follow such procedure as may be prescribed. 3. A licence granted under this Chapter shall be valid for the period specified therein and may be renewed from time to time for such period and on payment of such fees and on such conditions as may be prescribed. 14. Revocation, Suspension and Amendment of Licenses 1. If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise, that a. a license granted under section 12 has been obtained by misrepresentation or suppression of any material fact, or b. the holder of a license has, without reasonable cause, failed to comply with the conditions subject to which the license has been granted or has contravened any of the provisions of this Act or the rules made there under, then, without prejudice to any other penalty to which the holder of the license may be liable under this Act, the licensing officer may, after giving the holder of the license an opportunity of showing cause, revoke or suspend the license or forfeit the sum, if any, or any portion thereof deposited as security for the due performance of the conditions subject to which the license has been granted. 2. Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a license granted under section 12.

CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986 Define the Child a person who has not completed his Fourteenth year of age. There is prohibition of employment of children in certain occupations and processes prescribed in part A and part B of the schedule. If no age certificate, then decision to be given by the prescribed medical authority. Contravention of the provisions of Section 3 attract imprisonment from 3 months to 1 year and fine from Rs.10000 to Rs.20000 or both. Second or subsequent offence, attract imprisonment from 6 months to 2 year and fine from Rs.10000 to Rs.20000 or both. If fails to give notice, Section 9, 11, 12 attract Imprisonment upto to 1 month and fine upto Rs.10000 or both.

Prohibition of Employment of Children in Certain Occupations and Processes: No child shall be employed or permitted to work in any of the occupations set forth in Part A of the Schedule or in any workshop wherein any of the processes set forth in Part B of the Schedule is carried on; Provided that nothing in this section shall apply to any workshop wherein any process is carried on by the occupier with the aid of his family or to any school establishment by, or receiving assistance or recognition from, Government. Power to amend the Schedule. The Central Government, after giving by notification in the Official Gazette, not less than three months notice of its intention so to do, may, by like notification, add any occupation or process to the Schedule and thereupon the Schedule shall be deemed to have been amended accordingly. Child Labour Technical Advisory Committee 1. The Central Government may, by notification in the Official Gazette, constitute an advisory committee to be called the Child Labour Technical Advisory Committee (hereafter in this section referred to as the Committee) to advise the Central Government for the purpose of addition of occupation and processes to the Schedule. 2. The Committee shall consist of a Chairman and such other members not exceeding ten, as may be appointed by the Central Government. 3. The Committee shall meet as often as it may consider necessary and shall have power to regulate its own procedure. 4. The Committee may, if it deems it necessary so to do, constitute one or more sub-committees and may appoint to any such sub- committee, whether generally or for the consideration of any particular matter, any person who is not a member of the Committee. 5. The term of office of, the manner of filling casual vacancies in the office of, and the allowances, if any, payable to, the Chairman and other members of the Committee, and the conditions and restrictions subject to which the Committee may appoint any person who is not a member of the Committee as a member of any of its sub-committees shall be such as may be prescribed. Part III Regulation of Conditions of Work of Children Application of Part The provisions of this Part shall apply to an establishment or a class of establishments in which none of the occupations or processes referred to in Section 3 is carried on. Hours and Period of Work 1. No child shall be required or permitted to work in any establishment in excess of such number of hours as may be prescribed for such establishment or class of establishments. 2. The period of work on each day shall be so fixed that no period shall exceed three hours and that no child shall work for more than three hours before he has had an interval for rest for at least one hour. 3. The period of work of a child shall be so arranged that inclusive of his interval for rest, under subsection (2), it shall not be spread over more than six hours, including the time spent in waiting for work on any day. 4. No child shall be permitted or required to work between 7 p.m. and 8 a.m. 5. No child shall be required or permitted to work overtime.

6. No child shall be required or permitted to work in any establishment on any day on which he has already been working in another establishment. Weekly Holidays Every child employed in an establishment shall be allowed in each week, a holiday of one whole day, which day shall be specified by the occupier in a notice permanently exhibited in a conspicuous place in the establishment and the day so specified shall not be altered by the occupier more than once in three months. Notice to Inspector 1. Every occupier in relation to an establishment in which a child was employed or permitted to work immediately before the date of commencement of this Act in relation to such establishment shall, within a period of thirty days from such commencement, send to the Inspector within whose local limits the establishment is situated, a written notice containing the following particulars, namely: a. the name and situation of the establishment; b. the name of the person in actual management of the establishment; c. the address to which communications relating to the establishment should be sent; and d. the nature of the occupation or process carried on in the establishment. 2. Every occupier, in relation to an establishment, who employs, or permits to work, any child after the date of commencement of this Act in relation to such establishment, shall, within a period of thirty days from the date of such employment, send to the Inspector within whose local limits the establishment is situated, a written notice containing the particulars as are mentioned in subsection (1) 3. Nothing in Sections 7,8 and 9 shall apply to any establishment wherein any process is carried on by the occupier with the aid of his family or to any school established by, or receiving assistance or recognition from, Government. Disputes as to Age If any question arises between an Inspector and an occupier as to the age of any child who is employed or is permitted to work by him in an establishment, the question shall, in the absence of a certificate as to the age of such child granted by the prescribed medical authority, be referred by the Inspector for decision to the prescribed medical authority. Maintenance of Register There shall be maintained by every occupier in respect of children employed or permitted to work in any establishment, a register to be available for inspection by an Inspector at all times during working hours or when work is being carried on in any such establishment, showing a. the name and date of birth of every child and so employed or permitted to work b. hours and periods of work of any such child and the intervals of rest to which he is entitled c. the nature of work of any such child; and d. such other particulars as may be prescribed. Display of Notice Containing Abstract of Section 3 and 14 Every railway administration, every port authority and every such occupier shall cause to be displayed in a conspicuous and accessible place at every station on its railway or within the limits of a portor at the place of work, as the case may be, a notice in the local language and in the English language containing an abstract of Sections 3 and 14.

THE EQUAL REMUNERATION ACT 1976: This Act has Overriding Effect to all other acts which says ³PAYMENT OF REMUNERATION NOT AT EQUAL RATES TO MEN AND WOMEN WORKERS AND OTHER MATTERS´. It is a Duty of employer to pay equal remuneration to men and women workers for same work or work of a similar nature and No Discrimination to be Made While Recruiting Men and Women Workers. Act not to Apply in Certain Special Cases affecting the terms and conditions of a woman¶s employment in complying with the requirements of any law giving special treatment to women, or to any special treatment accorded to women in connection With the birth or expected birth of a child, or the terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death. ³same work or work of a similar nature´ means work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or a woman and the differences, if any, between the skill, effort and responsibility required of a man and those required of woman are not of practical importance in relation to the terms and conditions of employment; i. ³worker´ means a worker in any establishment or employment in respect of which this Act has come into force; ii. Words and expressions used in this Act and not defined but defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act. Act to have Overriding Effect: The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the commencement of this Act, or in any instrument having effect under any law for the time being in force. PAYMENT OF REMUNERATION AT EQUAL RATES TO MEN AND WOMEN WORKERS AND OTHER MATTERS Duty of employer to pay equal remuneration to men and women workers for same work or work of a similar nature: 1. No employer shall pay to any worker, employed by him in an establishment or employment, remuneration, whether payable in cash or in kind, at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex in such establishment or employment for performing the same work or work of a similar nature. 2. No employer shall, for the purpose of complying with the provisions of sub-section (1), reduce the rate of remuneration of any worker. 3. Where, in an establishment or employment, the rates of remuneration payable before the commencement of this Act for men and women workers for the same work or work of a similar nature are different only on the ground of sex, then the higher (in cases where there are only two rates), or, as the case may be, the highest (in cases where there are more than two rates), of such rates shall be the rate at which remuneration shall be payable, on and from such commencement, to such men and women workers: Provided, that nothing in this sub-section shall be deemed to entitle a worker to the revision of the rate of remuneration payable to him or her with reference to the service rendered by him or her before the commencement of this Act.
No Discrimination to be Made While Recruiting Men and Women Workers:

On and from the commencement of this Act, no employer shall, while making recruitment for the same work or work of a similar nature, 1[or in any condition of service subsequent to recruitment such as

promotions, training or transfer,] make any discrimination against women except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force: PROVIDED, that the provisions of this section shall not affect any priority or reservation for scheduled castes or scheduled tribes, ex-servicemen, retrenched employees or any other class or category of persons in the matter of recruitment to the posts in an establishment or employment. Advisory Committee: 1. For the purpose of providing increasing employment opportunities for women, the appropriate government shall constitute one or more advisory committees to advise it with regard to the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf, 2. Every advisory committee shall consist of not less than ten persons, to be nominated by the appropriate government, of which one-half shall be Women. 3. In tendering its advice, the advisory committee shall have regard to the number of women employed in the concerned establishment or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part-time employment and such other relevant factors as the committee may think fit. 4. The advisory committee shall regulate its own procedure. 5. The appropriate government may, after considering the advice tendered to it by the advisory committee and after giving to the persons concerned in the establishment or employment an opportunity to make representations, issue such directions in respect of employment of women workers, as the appropriate government may think fit. Penalties: 1. If after the commencement of this Act, any employer, being required by or under the Act, so to do² a. omits or fails to maintain any register or other document in relation to workers employed by him, or b. omits or fails to produce any register, muster-roll or other document relating to the employment of workers, or c. omits or refuses to give any evidence or prevents his agent, servant, or any other person in charge of the establishment, or any worker, from giving evidence, or d. omits or refuses to give any information, he shall be punishable l[with simple imprisonment for a term which may extend to one month or with fine which may extend to ten thousand rupees or with both]. 2. If, after the commencement of this Act, any employer a. makes any recruitment in contravention of the provisions of this Act, or b. makes any payment of remuneration at unequal rates to men and women workers, for the same work or work of a similar nature, or c. makes any discrimination between men and women workers in contravention of the provisions of this Act, or d. omits or fails to carry out any direction made by the appropriate government under sub-section (5) of section 6, he shall be punishable l[with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with imprisonment for a term which shall be not less than three months but which may extend to one year or with both for; the first offence, and with imprisonment which may extend to two years for the second and subsequent offences]. 3. If any person being required so to do, omits or refuses to produce to an inspector any register or other document or to give any information, he shall be punishable with fine, which may extend to five hundred rupees.

Act not to Apply in Certain Special Cases: Nothing in this Act shall apply a. to cases affecting the terms and conditions of a woman¶s employment in complying with the requirements of any law giving special treatment to women, or b. to any special treatment accorded to women in connection with i. the birth or expected birth of a child, or ii. the terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death.

MINIMUM WAGES ACT, 1948 : The appropriate government shall, in the manner hereinafter provided fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Schedule. And fix the minimum rates of wages payable to employees employed in an employment added to either Part by notification under section 27 or review at such intervals as it may think fit, such intervals not exceeding five years or employment having 1000 number of employees or more. The appropriate government may fix minimum wages as a minimum time rate, a minimum piece rate, a guaranteed time rate or overtime rate. Different minimum rates of wages may be fixed for, different scheduled employments, different classes of work in the same scheduled employment, adults, adolescents, children and apprentices, and different localities. Fixing of Minimum Rates of Wages: [(1) The appropriate government shall, in the manner hereinafter provided,[a. fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Schedule and in an employment added to either Part by notification under section 27: PROVIDED that the appropriate Government may, in respect of employees employed in an employment specified in Part II of the Schedule, instead of fixing minimum rates of wages under this clause for the whole State, fix such rates for a part of the State or for any specified class or classes of such employment in the whole State or part thereof;] b. review at such intervals as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates, if necessary: [PROVIDED that where for any reason the appropriate government has not reviewed the minimum rates of wages fixed by it in respect of any scheduled employment within any interval of five years, nothing contained in this clause shall be deemed to prevent it from reviewing the minimum rates after the expiry of the said period of five years and revising them, if necessary, and until they are so revised the minimum rates in force immediately before the expiry of the said period of five years shall continue in force.] (1A) Notwithstanding anything contained in sub-section (1), the appropriate government may refrain from fixing minimum rates of wages in respect of any scheduled employment in which there are in the whole State less than one thousand employees engaged in such employment, but if at any time, the appropriate government comes to a finding after such inquiry as it may make or cause to be made in this behalf that the number of employees in any scheduled employment in respect of which it has refrained from fixing minimum rates of wages has risen to one thousand or more, it shall fix minimum rates of wages payable to employees in such employment [as soon as may be after such finding.] 2. The appropriate government may fix a. a minimum rate of wages for time work (hereinafter referred to as ³a minimum time rate´); b. a minimum rate of wages for piece work (hereinafter referred to as ³a minimum piece rate´); I a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as ³a guaranteed time rate´); d. a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum rate which would otherwise be applicable, in respect of overtime work done by employees (hereinafter referred to as ³overtime rate´). [(2A) Where in respect of an industrial dispute relating to the rates of wages payable to any of the employees employed in a scheduled employment, any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947 (14 of 1947) or before any like authority under any other law for the time being in force, or an award made by any Tribunal, National Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the scheduled employment is issued during the pendency of such proceeding or the operation of the award, then, notwithstanding anything contained in this Act, the minimum rates of wages

so fixed or so revised shall not apply to those employees during the period in which the proceeding is pending and the award made therein is in operation or, as the case may be, where the notification is issued during the period of operation of an award, during that period; and where such proceeding or award relates to the rates of wages payable to all the employees in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period.] 3. In fixing or revising minimum rates of wages under this section,1. different minimum rates of wages may be fixed fori. different scheduled employments; ii. different classes of work in the same scheduled employment; iii. adults, adolescents, children and apprentices; iv. different localities; [b. minimum rates of wages may be fixed by any one or more of the following wage periods, namely: i. by the hour, ii. by the day, iii. by the month, or iv. by such other larger wage-period as may be prescribed; and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the case may be, may be indicated:] PROVIDED that where any wage-periods have been fixed under section 4 of the Payment of Wages Act, 1936 (4 of 1936), minimum wages shall be fixed in accordance therewith. Minimum Rate of Wages: 1. Any minimum rate of wages fixed or revised by the appropriate government in respect of scheduled employments under section 3 may consist of i. a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the ³cost of living allowance´); or ii. a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concessional rates, where so authorised; or iii. an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any. 2. The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concessional rate shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the appropriate government. Procedure for Fixing and Revising Minimum Wages 1. In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate government shall either a. appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or b. by notification in the Official Gazette, publish its proposals for the information of persons likely to be affected thereby and specify a date, not less than two months from the date of the notification, on which the proposals will be taken into consideration. 2. After considering the advice of the committee or committees appointed under clause (a) of sub-section (1), or as the case may be, all representations received by it before the date specified in the notification under clause (b) of that subsection, the appropriate government shall, by notification in the Official Gazette fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled

employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue: Provided that where the appropriate government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-section (1), the appropriate government shall consult the Advisory Board also.] Advisory Board For the purpose of co-ordinating work of 15[committees and sub-committees appointed under section 5] and advising the appropriate government generally in the matter of fixing and revising minimum rates of wages, the appropriate government shall appoint an Advisory Board. Central Advisory Board 1. For the purpose of advising the Central and State Governments in the matters of the fixation and revision of minimum rates of wages and other matters under this Act and for co-ordinating the work of the Advisory Boards, the Central Government shall appoint a Central Advisory Board. 2. The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman of the Board by the Central Government. Composition of Committees, etc. Each of the committees, sub-committees and the Advisory Board shall consist of persons to be nominated by the appropriate government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman by the appropriate government. Correction of Errors 1. The appropriate government may, at any time, by notification in the Official Gazette, correct clerical or arithmetical mistakes in any order fixing or revising minimum rates of wages under this Act, or errors arising therein from any accidental slip or omission. 2. Every such notification shall, as soon as may be after it is issued, be placed before the Advisory Board for information,] Wages in Kind 1. Minimum wages payable under this Act shall be paid in cash. 2. Where it has been the custom to pay wages wholly or partly in kind, the appropriate government being of the opinion that it is necessary in the circumstances of the case may, by notification in the Official Gazette, authorise the payment of minimum wages either wholly or partly in kind. 3. If appropriate government is of the opinion that provision should be made for the supply of essential commodities at concessional rates, the appropriate government may, by notification in the Official Gazette, authorise the provision of such supplies at concessional rates. 4. The cash value of wages in kind and of concessions in respect of supplies of essential commodities at concessional rates authorised under sub-sections (2) and (3) shall be estimated in the prescribed manner. Payment of Minimum Rates of Wages 1. Where in respect of any scheduled employment a notification under section 5 17[***] is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorised within such time and subject to such conditions as may be prescribed. 2. Nothing contained in this section shall affect the provisions of the Payment of Wages Act, 1936 (4 of 1936). Fixing Hours for a Normal Working Day, etc. [(1) In regard to any scheduled employment minimum rates of wages in respect of which have been fixed under this Act, the appropriate government may-

1. fix the number of hours of work which shall constitute a normal working day, inclusive of one or more specified intervals; b. provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest; I provide for payment for work on a day of rest at a rate not less than the overtime rate.] [(2) The provisions of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subject to such conditions as may be prescribed:1. employees engaged on urgent work, or in any emergency which could not have been foreseen or prevented; b. employees engaged in work in the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned; I employees whose employment is essentially intermittent; d. employees engaged in any work which for technical reasons has to be completed before the duty is over; e. employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces. (3) For the purposes of clause I of sub-section (2), employment of an employee is essentially intermittent when it is declared to be so by the appropriate government on the ground that the daily hours of duty of the employee, or if there be no daily hours of duty as such for the employee, the hours of duty, normally include periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attention.] Overtime 1. Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by the day or by such a longer wage-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess at the overtime rate fixed under this Act or under any law of the appropriate government for the time being in force, whichever is higher. 2. Nothing in this Act shall prejudice the operation of the provisions of [section 59 of the Factories Act, 1948 (63 of 1948)] in any case where those provisions are applicable. Wages of Worker who Works for Less than Normal Working Day If an employee whose minimum rate of wages has been fixed under this Act by the day works on any day on which he was employed for a period less than the requisite number of hours constituting a normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day: PROVIDED, however, that he shall not be entitled to receive wages for a full normal working day i. in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work, and ii. ii. in such other cases and circumstances as may be prescribed. Wages for Two or More Classes of Work Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class. Minimum Time Rate Wages for Piece Work Where an employee is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate. Maintenance of Registers and Records 1. Every employer shall maintain such registers and records giving such particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given by them and such other particulars and in such form as may be prescribed.

2. Every employer shall keep exhibited, in such manner as may be prescribed, in the factory, workshop or place where the employees in the scheduled employment may be employed, or in the case of out-workers, in such factory, workshop or place as may be used for giving out work to them, notices in the prescribed form containing prescribed particulars. 3. The appropriate government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescribed in the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent. Inspectors 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 and define the local limits within which they shall exercise their functions. 2. Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed1. enter, at all reasonable hours, with such assistants (if any), being persons in the service of the government or any local or other public authority, as he thinks fit, any premises or place where employees are employed or work is given out to out-workers in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act for the purpose of examining any register, record of wages or notices required to be kept or exhibited by or under this Act or rules made there under, and require the production thereof for inspection; b. examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is an employee employed therein or an employee to whom work is given out therein; I require any person giving out-work and any outworkers, to give any information, which is in his power to give, with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payments to be made for the work; [d. seize or take copies of such register, record or wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by an employer]; and e. exercise such other powers as may be prescribed. 3. Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860). [4. Any person required to produce any document or thing or to give any information by an Inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860).] Penalties for Certain Offences Any employer who 1. pays to any employee less than the minimum rates of wages fixed for that employee¶s class of work, or less than the amount due to him under the provisions of this Act, or 2. Contravenes any rule or order made under section 13; shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both: PROVIDED, that in imposing any fine for an offence under this section, the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 20. 22A. General Provision for Punishment of Other Offences Any employer who contravenes any provision of this Act or of any rule or order made thereunder shall, if no other penalty is provided for such contravention by this Act be punishable with fine which may extend to five hundred rupees. 22B. Cognizance of Offences 1. No court shall take cognizance of a complaint against any person for an offence-

a. under clause (a) of section 22 unless an application in respect of the facts constituting such offence has been presented under section 20 and has been granted wholly or in part, and the appropriate government or an officer authorised by it in this behalf has sanctioned the making of the complaint; b. under clause (b) of section 22 or under section 22A, except on a complaint made by, or with the section of, an Inspector. 2. No court shall take cognizance of an offencea. under clause (a) or clause (b) of section 22, unless complaint thereof is made within one month of the grant of sanction under this section; b. under section 22A, unless complaint thereof is made within six months of the date on which the offence is alleged to have been committed. 22C. Offences by Companies 1. If the person committing any offence under this Act is a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. 2. Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary, or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation: For the purposes of this section1. ³Company´ means anybody corporate and includes a firm or other association of individuals, and b. ³director´ in relation to a firm means a partner in the firm. 22D. Payment of Undisbursed Amounts Due to Employees All amounts payable by an employer to an employee as the amount of minimum wages of the employee under this Act or otherwise due to the employee under this Act or any rule or order made thereunder shall, if such amounts could not or cannot be paid to the employee on account of his death before payment or on account of his whereabouts not being known, be deposited with the prescribed authority who shall deal with the money so deposited in such manner as may be prescribed. 22e. Protection Against Attachment of Assets of Employer with Government Any amount deposited with the appropriate government by an employer to secure the due performance of a contract with that government and any other amount due to such employer from that government in respect of such contract shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the employer other than any debt or liability incurred by the employer towards any employee employed in connection with the contract aforesaid. 22F. Application of Payment of Wages Act, 1936 to Scheduled Employments 1. Notwithstanding anything contained in the Payment of Wages Act, 1936 (4 of 1936), the appropriate government may, by notification in the Official Gazette, direct that, subject to the provisions of subsection (2), all or any of the provisions of the said Act shall, with such modifications, if any, as may be specified in the notification, apply to wages payable to employees in such scheduled employments as may be specified in the notification. 2. Where all or any of the provisions of the said Act are applied to wages payable to employees in any scheduled employment under sub-section (1), the Inspector appointed under this Act shall be deemed to be the Inspector for the purpose of enforcement of the provisions so applied within the local limits of his jurisdiction.]

EMPLOYEES STATE INSURANCE ACT 1948: The Act provided for certain benefits to employees¶ in case of sickness, maternity and employment injury and also makes provision for certain other matters. The coverage under the act is at present restricted to employees drawing wages not exceeding Rs. 3000 per month. The administrative and regulatory authorities in ESI act are Corporation, Standing Committee and Medical Benefit Council. Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation. The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf. Government may, by notification in the Official Gazette, supersede Corporation or Standing Committee. Duties of Medical Benefit Council Advise the Corporation and the Standing Committee, powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners. Corporation, Standing Committee and Medical Benefit Council: Establishment of Employees¶ State Insurance Corporation 1. With effect from such dateas the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the administration of the scheme of employees¶ state insurance in accordance with the provisions of this Act a Corporation to be known as the Employees¶ State Insurance Corporation. 2. The Corporation shall be a body corporate by the name of Employees¶ State Insurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued. 4. Constitution of Corporation The Corporation shall consist of the following members, namely:[a. a Chairman to be [appointed] by the Central Government; b. a Vice-Chairman to be [appointed] by the Central Government;] c. not more than five persons to be [appointed] by the Central Government, d. one person each representing each of the [[States] in which this Act is in force] to be [appointed] by the State Government concerned; e. one person to be [appointed] by the Central Government to represent the [Union Territories]; f. [ten] persons representing employers to be [appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government; g. [ten] persons representing employees to be [appointed] by the Central Government in consultation with such organisations of employees as may be reorganised for the purpose by the Central Government; h. two persons representing the medical profession to be [appointed] by the Central Government in consultation with such organisation of medical practitioners as may be recognised for the purpose by the Central Government i. three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States; and j. the Director-General of the Corporation ex-officio.] 5. Term of Office of Members of the Corporation 1. Save as otherwise expressly provided in this Act, the term of office of members of the Corporation other than [the members referred to in clauses (a), (b), (c), (d) and (e) of section 4 and the ex officio member,] shall be four years, commencing from the date on which their [appointment] or election is notified: PROVIDED that a member of the Corporation shall, notwithstanding the expiry of the said period of four years, continue to hold office until the [appointment] or election of his successor is notified. 2. The members of the Corporation referred to in clauses [(a),(b),(c) and (e)]of section 4 shall hold office during the pleasure of the government [appointing] them.

6. Eligibility for Re-nomination or Re-election An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for [re-appointment] or re-election as the case may be. 7. Authentication of Orders, Decisions etc. All orders and decisions of the Corporation shall be authenticated by the signature of the Director General of the Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the Director General or such other officer of the Corporation as may be authorised by him.] 8. Constitution of Standing Committee A Standing Committee of the Corporation shall be constituted from among its members, consisting of a. A Chairman, [appointed] by the Central Government; b. three members of the Corporation [appointed] by the Central Government]; [bb. three members of the Corporation representing such three State Governments thereon as the Central Government may, by notification Gazette, specify from time to time;] c. [eight] members elected by the Corporation as follows ii. [three] members from among the members of the Corporation representing employers; iii. [three] members from among the members of the Corporation representing employees; iv. one member from among the members of the Corporation representing the medical profession; and v. one member from among the members of the Corporation elected by [Parliament]; [d. the Director General of the Corporation, ex officio.] 9. Term of Office of Members of Standing Committee 1. Save as otherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or [clause (b) or clause (bb)] of section 8, shall be two years from the date on which his election is notified: PROVIDED that a member of the Standing Committee shall, notwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified: PROVIDED FURTHER that a member of the Standing Committee shall cease to hold office when he ceases to be a member of the Corporation. 2. A member of the Standing Committee referred to in clause (a) or [clause (b) or clause (bb)] of section 8 shall hold office during the pleasure of the Central Government. 10. Medical Benefit Council 1. The Central Government shall constitute a Medical Benefit Council consisting of a. The Director General, Health Services, ex officio, as Chairman; b. A Deputy Director General, Health Services, to be [appointed] by the Central Government; c. The medical commissioner of the Corporation, ex officio; d. One member each representing each of the [[States (other than Union Territories) in Which this Act is in force] to be [appointed] by the State Government concerned; e. Three members representing employers to be [appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government; f. three members representing employees to be [appointed] by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government; and g. three members, of whom not less than one shall be a woman, representing the medical profession, to be [appointed] by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government. 2. Save as otherwise expressly provided in this Act, the term of office of a member of the Medical Benefit Council, other than a member referred to in any of the clauses (a) to (d) of sub-sec. (1), shall be four years from the date on which his [appointment] is notified: [PROVIDED that a member of the Medical Benefit Council shall notwithstanding the expiry of the said period of four years continue to hold office until the [appointment] of his successor is notified.] 3. A member of the Medical Benefit Council referred to in clauses (b) and (d) of sub-section (1) shall hold office during the pleasure of the government [appointing] him.

11. Resignation of Membership A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that government. 12. Cessation of Membership [1. A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof : PROVIDED that the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership. [2. Where in the opinion of the Central Government any person [appointed] or elected to represent employers, employees or the medical profession on the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, has ceased to represent such employers, employees, or the medical profession, the Central Government may, by notification in the Official Gazette, declare that with effect from such date as may be specified therein such person shall cease to be a member of the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.] [3. A person referred to in clause (i) of section 4 shall cease to be a member of the Corporation when he ceases to be a Member of Parliament.] 13. Disqualification A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medical Benefit Council a. if he is declared to be of unsound mind by a competent court; or b. if he is an undischarged insolvent; or c. if he has directly or indirectly by himself or by his partner any interest in a subsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder (not being a director) of a company; or d. if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitude. 14. Filling of Vacancies 1. Vacancies in the office of [appointed] or elected members of the Corporation, the Standing Committee and the Medical Benefit Council shall be filled by [appointment] or election, as the case may be. 2. A member of the Corporation, the Standing Committee or the Medical Benefit Council [appointed] or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is [appointed] or elected would have been entitled to hold office, if the vacancy had not occurred. 15. Fees and Allowances Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government. 16. Principal Officers [1. The Central Government may, in consultation with the Corporation, appoint a director general and a financial commissioner.] 2. The director general shall be the chief executive officer of the Corporation. 3. [The director general and the financial commissioner] shall be whole-time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government [and of the Corporation.] 4. [The director general or the financial commissioner] shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing [director general or financial commissioner] shall be eligible for re-appointment if he is otherwise qualified. 5. [The director general or the financial commissioner] shall receive such salary and allowances as may be prescribed by the Central Government. 6. A person shall be disqualified from being [appointed] as or for being [The Director General or the Financial Commissioner] if he is subject to any of the disqualifications specified in section 13.

7. The Central Government may at any time remove [the director general or the financial commissioner] from office and shall do so if such removal is recommended by a resolution of the Corporation passed at a special meeting called for the purpose and supported by the votes of not less than two-thirds of the total strength of the Corporation. 17. Staff 1. The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post [the maximum monthly salary of which [exceeds such salary as may be prescribed by the Central Government.] [2. a. The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay: PROVIDED that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government. b. In determining the corresponding scales of pay of the members of the staff under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.] 3. Every appointment to [posts [(other than medical posts)] posts under Central Government], shall be made in consultation with the [Union] Public Service Commission: PROVIDED that this sub-section shall not apply to an officiating or temporary [appointment] for [a period] not exceeding one year: [PROVIDED FURTHER, that any such officiating or temporary appointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regulations for promotion to next higher grade.] [4. If any question arises whether a post corresponds to a [Group A and Group B] post under the Central Government, the question shall be referred to that government whose decision thereon shall be final.] 18. Powers of the Standing Committee 1. Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation. 2. The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf. 3. The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation. 19. Corporation¶s Power to Promote Measures for Health, etc. of Insured Persons The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and reemployment of insured persons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government. 20. Meetings of Corporation, Standing Committee and Medical Benefit Council Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Council shall meet at such times and places and shall observe such rules or procedure in regard to transaction of business at their meetings as may be specified in the regulations made in this behalf. 21. Supersession of the Corporation and Standing Committee 1. If in the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that

government may, by notification in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in consultation with the Corporation, the Standing Committee: PROVIDED that before issuing a notification under this sub-section the Central Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Corporation or the Standing Committee, as the case may be. 2. Upon the publication of a notification under sub-section (1) superseding the Corporation or the Standing Committee, all the members of the Corporation or the Standing Committee, as the case may be, shall, as from the date of such publication, be deemed to have vacated their offices. 3. When the Standing Committee has been superseded, a new standing Committee shall be immediately constituted in accordance with section 8. 4. When the Corporation has been superseded, the Central Government may a. immediately [appoint] or cause to be [appointed] or elected new members to the Corporation in accordance with section 4 and may constitute a new Standing Committee under section 8; b. in its discretion, appoint such agency, for such period as it may think fit, to exercise the powers and perform the functions of the Corporation and such agency shall be competent to exercise all the powers and perform all the functions of the Corporation. 5. The Central Government shall cause a full report of any action taken under this section and the circumstances leading to such action to be laid before [Parliament] at the earliest opportunity and in any case not later than three months from the date of the notification superseding the Corporation or the Standing Committee as the case may be. 22. Duties of Medical Benefit Council The Medical Benefit Council shall a. advise [the Corporation and the Standing Committee] on matters relating to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters; b. have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical treatment and attendance; and c. perform such other duties in connection with medical treatment and attendance as may be specified in the regulations. 23. Duties of [Director General and the Financial Commissioner] The [director general and the financial commissioner] shall exercise such powers and discharge such duties as may be prescribed. They shall also perform such other functions as may be specified in the regulations. 24. Acts of Corporation, etc. not Invalid by Reason of Defect in Constitution, etc. No act of the Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be invalid by reason of any defect in the constitution of the Corporation, the Standing Committee or the Medical Benefit Council, on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in his [appointment] or election, or by reason of such act having been done during the period of any vacancy in the office of any member of the Corporation, the Standing Committee or the Medical Benefit Council. 25. Regional Boards, Local Committees, Regional and Local Medical Benefit Councils The Corporation may appoint regional boards, local committees and regional and local Medical Benefit Councils in such areas and in such manner, and delegate to them such powers and functions, as may be provided by the regulations.

Employees¶ State Insurance Fund: 1. All contributions paid under this Act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees¶ State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.

2. The Corporation may accept grants, donations and gifts from the Central or any [State Government,] local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act. [3. Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or such other bank as may be approved by the Central Government to the credit on an account styled the account of the Employees¶ State Insurance Fund.] 4. Such account shall be operated on by such officers as may be authorised by the Standing Committee with the approval of the Corporation. 28. Purposes for which the Fund may be Expended Subject to the provisions of this Act and of any rules made by the Central Government in that behalf, the Employees¶ State Insurance Fund shall be expended only for the following purposes, namely:i. payment of benefits and provision of medical treatment and attendance to insured persons and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with the provisions of this Act and defraying the charges and costs in connection therewith; ii. payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Council, the regional boards, local committees and regional and local Medical Benefit Councils; iii. payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of officers and servants of the Corporation and meeting the expenditure in respect of offices and other services set up for the purpose of giving effect to the provisions of this Act; iv. establishment and maintenance of hospitals, dispensaries and other institutions and the provisions of medical and other ancillary services for the benefit of insured persons and, where the medical benefit is extended to their families, their families; v. payment of contributions to any [State Government,] local authority or any private body or individual, towards the cost of medical treatment and attendance provided to insured persons and, where the medical benefit is extended to their families, their families including the cost of any building and equipment in accordance with any agreement entered into by the Corporation; vi. defraying the cost (including all expenses) of auditing the accounts of the Corporation and of the valuation of its assets and liabilities; vii. defraying the cost (including all expenses) of the Employees¶ State Insurance Courts set up under this Act; viii. payment of any sums under any contract entered into for the purposes of this Act by the Corporation or the Standing Committee or by any officer duly authorised by the Corporation or the Standing Committee in that behalf; ix. payment of sums under any decree, order or award of any Court or Tribunal against the Corporation or any of its officers or servants for any act done in the execution of his duty or under a compromise or settlement of any suit or other legal proceeding or claim instituted or made against the Corporation; x. defraying the cost and other charges of instituting or defending any civil or criminal proceedings arising out of any action taken under this Act; xi. defraying expenditure, within the limits prescribed, on measures for the improvement of the health and welfare of insured persons and for the rehabilitation and reemployment of insured persons who have been disabled or injured; and xii. such other purposes as may be authorised by the Corporation with the previous approval of the Central Government.

Contributions 38. All Employees to be Insured Subject to the provisions of this Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act. 39. Contributions 1. The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer¶s contribution) and contribution payable by the employee (hereinafter referred to as the employee¶s contribution) and shall be paid to the Corporation. [2. The contributions shall be paid at such rates as may be prescribed by the Central Government: PROVIDED that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees¶ State Insurance (Amendment) Act, 1989.] [3. The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.] 4. The contributions payable in respect of each [wage period] shall ordinarily fall due on the last day of the [wage period], and where an employee is employed for part of the [wage period], or is employed under two or more employers during the same 69[wage period], the contributions shall fall due on such days as may be specified in the regulations. 5. a. If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent per annum or at such higher rate as may be specified in the regulations till the date of its actual payment: PROVIDED that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank. b. Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under sections 45C to 45-1. Explanation: In this sub-section, ³scheduled bank´ means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).] Principal Employer to Pay Contributions in the First Instance 1. The principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer¶s contribution and the employee¶s contribution. 2. Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made there under, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee¶s contribution by deduction from his wages and not otherwise: PROVIDED that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee¶s contribution for the period. 3. Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer¶s contribution from any wages payable to an employee or otherwise to recover it from him. 4. Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. 5. The principal employer shall bear the expenses of remitting the contributions to the Corporation.