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LABOUR AND EMPLOYMENT DEPARTMENT

POLICY NOTE

DEMAND No.32
LABOUR, FACTORIES,
EMPLOYMENT AND TRAINING
2012 – 2013

S.T. CHELLAPANDIAN
Minister for Labour

©
Government of Tamil Nadu
2012

INDEX
SL.
NO.

CONTENTS

PAGE
NO.

I. LABOUR DEPARTMENT
1

Labour Courts

4

2

Enforcement of Acts & Rules

5

3

Minimum Wages Act, 1948

15

4

Social Security

16

5

Welfare of Beedi Workers

21

6

Consumer Protection

23

7

Eradication of Child Labour

25

8

Tamil Nadu Labour Welfare Board

30

9

Unorganised Workers Welfare Boards

34

Tamil Nadu Institute of Labour Studies

43

10

II. INSPECTORATE OF FACTORIES
11

Regulatory Functions

48

12

Health, Safety, Training and
Development

54

III. EMPLOYMENT AND TRAINING DEPARTMENT
13

Performance of the Employment
Exchanges

62

14

Vocational Guidance Activities

64

15

Private Sector Placements

65

16

Special Cells for Differently Abled
Persons

66

17

Coaching-cum-Guidance Centers for SC /
ST Youth

67

18

Unemployment Assistance Scheme

69

19

Major Skill Development Training
Programme

72

20

Craftsmen Training Scheme

72

21

Government Industrial Training
Institutes

73

22

Apprenticeship Training Scheme

80

23

Upgradation of Government ITIs under
PPP mode

83

24

Tamil Nadu Skill Development Mission

84

IV

OVERSEAS MANPOWER
CORPORATION LIMITED

87

V

DIRECTORATE OF MEDICAL AND
RURAL HEALTH SERVICES (ESIS)

89

VI

EMPLOYEES’ PROVIDENT FUND
SCHEME (GOI)

100

VII

PART-II SCHEMES, 2012-2013

103

I. LABOUR DEPARTMENT

Tamil Nadu is home to 38,379 factories,
3,15,572 shops and establishments and provides
employment to more than 2.79 crore of workers.
8% of this work force is in the organised sector and
92% in the unorganised sector. A progressive,
industrialised and investment friendly State has
a strong manufacturing base and a thriving tertiary
sector.

The State has a well-developed

labour

market that is characterised by cordial industrial
relations, a long history of trade unionism, collective
bargaining and effective labour administration.
Sustained

economic

growth,

multiple

employment opportunities and reduced availability of
skilled labour characterise the Industrial relations
dynamics of the State today. Secondary and Tertiary
sectors have seen differential growth rates and have
impacted the Industrial relations scenario in different
ways.

1

The secondary sector has seen substantial
foreign direct investments in technology intensive
sectors like the automobile industry (automotive).
This has thrown up

challenges of harmonizing

cross cultural differences and integrating global
management practices with local work contexts.
The phenomenal growth seen in the tertiary sector in
recent times has led to increasing demand for highly
qualified

human

resources.

Rapidly

changing

technological advances coupled with high rates of
employee attrition have changed the dynamics and
paradigms of employer-employee engagement like
never before.
Increased

life

expectancy

and

improved

quality of life have changed the demographic profile
of the labour force. The labour force is increasingly
becoming old and living longer. Provision of social
security and health facilities becomes important.
The labour department strives to keep abreast of
this rapidly changing scenario through effective
enforcement of various laws and timely delivery of
social security benefits to the employees.

2

The

Labour

Department

enforces

labour

legislations to protect the rights of workers and
to ensure their welfare. Eradication of child labour in
this

State,

consumer
of

enforcing

protection

various

social

Legal
and

Metrology

welfare and

security

measures

Act

for

provision
through

Unorganised Workers Welfare Boards are some of
the important activities of the department.
Industrial Relations
Maintenance of industrial peace is essential for
achieving the objectives of growth and prosperity.
Progressive management and responsible labour
behaviour

are the prerequisites for

industrial relations.

harmonious

Close collaboration at all levels

between the employer

and

the employees

are

a prerequisite for increased productivity, quality
enhancement and cost effective production of goods
and services. The Labour department facilitates the
resolution of disputes and promotes harmonious
relations between the employers and employees for
achieving the objectives of economic growth and

3

prosperity. During the year 2011-12, the conciliation
officers of the department have resolved 4,348
disputes.
Some of the major disputes resolved are:1. Strike by nurses in leading hospitals in the
Chennai.
2. Strike by 7,000 Power loom owners and
workers in Sankarankoil taluk of Tirunelveli
district.
3. Strike by 1,00,000 Power loom owners and
workers in Coimbatore and Tiruppur districts.
4. Wage revision for 1,00,000 hosiery workers in
Tiruppur district.
5. 46 strikes and 9 lockouts in various industries.
Labour Courts
There are 12 Labour Courts in the State. They
are functioning at Chennai (4), Vellore (2), Salem,
Coimbatore, Cuddalore, Tiruchirappalli, Madurai and
Tirunelveli. Labour Courts adjudicate on matters
specified in the Second Schedule to the Industrial
Disputes Act, 1947.

4

The State Government have issued orders for
creating

sufficient

infrastructure

for

effective

implementation/enforcement of the awards passed
by the Labour Courts and the Industrial Tribunal.
Government have accorded sanction for 34 additional
posts for the creation of Nazareth establishment
to

each

of

the

eight

units

of

Labour

Courts

functioning in the State. Financial sanction has been
given for a sum of Rs.4.58 crore towards recurring
expenditure, furniture and computers.
Industrial Tribunal
In addition to the Labour Courts, an Industrial
Tribunal is functioning with its Headquarters at
Chennai.

The Industrial Tribunal adjudicates on

matters specified in the Second and Third Schedule
to the Industrial Disputes Act, 1947.
Enforcement of Acts & Rules
Enforcement
important
The

activity

enforcement

of
of

labour
the

machinery

5

legislations

Labour
in

the

is

an

Department.
department

regularly

conducts

inspections

and

periodically

organises special drives to ensure compliance of
statutory requirements of labour laws and the laws
relating to weights and measures. The primary duty
of the enforcement officials is to ensure that the
parties

concerned

comply

with

the

objectives

envisaged in the statutes and also to prosecute them
for non-compliance, if any.
The following are some of the important
labour legislations enforced by the Labour
Department :The Tamil Nadu Shops and Establishments Act,
1947
The

Act

employment
commercial
opening

of

regulates
persons

closing

conditions

working

establishments.

and

the

It

in

shops

provides

hours

of

for

Shops

of
and
the
and

Establishments and provision of weekly holiday with
wages. There are 3,15,572 shops and establishments
in the State. 2,91,403 inspections were made by the
enforcement

officers

during

the

year

2011–12.

29,256 cases were compounded and a sum of

6

Rs.21.94 lakh was collected as compounding fee.
35 cases were disposed of by the Courts and a sum
of Rs.10,000/- was imposed as fine.
The Tamil
Act, 1958

Nadu

Catering

Establishments

The Act regulates the conditions of work in
catering
holidays,

establishments.
periods

of

It

work,

provides
leave

for

weekly

with

wages,

overtime wage, etc.
There are 28,386 catering establishments in
the State. During 2011-2012, a sum of Rs.12.61 lakh
has been collected as registration and renewal fee
from the employers of catering establishments.
During the year 2011-2012, 43,404 inspections were
made, 3,947 cases were compounded and a sum of
Rs.4.55 lakh was collected as compounding fee.
The

Courts

have

imposed

Rs.3,900/- in 8 cases.

7

fine,

amounting

to

The Tamil Nadu Industrial Establishments
(National and Festival Holidays) Act, 1958
The Act provides for grant of National and
Festival Holidays to persons employed in Industrial
establishments.
During

the

year

2011-2012,

1,33,456

inspections were made. Of these 5,469 cases were
compounded and a sum of Rs.17.38 lakh was
collected

as

compounding

fee.

19

cases

were

disposed of and Rs.14,150/- was imposed as fine,
by the Courts.
The Payment of Wages Act, 1936
The Act provides for prompt payment of wages
to the employees, bars unauthorised deductions from
wages by the employers and provides for the
expeditious disposal of claims.
The Regional Deputy Commissioners of Labour
have been notified as authorities to hear and decide
the

claims

under

this

Act.

During

the

year

2011-2012, 144 claims were disposed of and a sum

8

of Rs.2.15 crore was ordered to be paid as wages to
the

claimants.

30,487

inspections

were

made,

26 cases were disposed of by the Courts and a sum
of Rs.11,200/- was imposed as fine.
The Contract Labour (Regulation and Abolition)
Act, 1970
The Act regulates the employment of contract
labour in certain establishments and abolishes this
system in certain circumstances and for the matters
concerned therewith. The Government of Tamil Nadu
have prohibited the employment of contract labour in
the following processes:1. Bagging process of cement and printing of
gunny bags in Cement Industry.
2. 19 processes in the Tamil Nadu Electricity
Board.
During the year 2011-2012, 2,188 inspections
were made. 10 cases were disposed of by the Courts
and a sum of Rs.55,000/- was imposed as fine.
426 establishments were registered as principal
employers and 610 licenses were issued. A sum of

9

Rs.8.42 lakh was collected by way of registration and
license fees.
A State Advisory Contract Labour Board has
been constituted under the Chairmanship of the
Secretary to Government, Labour and Employment
Department, to advise the Government on the
administration of this Act.

The Inter-State Migrant Workmen (Regulation
of Employment and Conditions of Service) Act,
1979
The Act regulates the employment of Inter
state migrant workers and their conditions of service.
During the year 2011-2012, 179 inspections were
made.

128 establishments were registered

and

262 licenses were issued. A sum of Rs.91,795/- was
collected by way of registration and license fees.

10

The Tamil Nadu Industrial Establishments
(Conferment of Permanent Status to Workmen)
Act, 1981
The Act provides for conferment of permanent
status to workmen in an industrial establishment
who have been in continuous service for 480 days in
a period of 24 calendar months. During the year
2011-2012, 1,847 inspections were made and 86
applications were disposed.
The Motor Transport Workers Act, 1961
The

Act

regulates

the

welfare

of

motor

transport workers and conditions of their work.
The

number

of

motor

transport

undertakings

registered is 2,313, consisting of 1,25,878 workers.
A sum of Rs.3.01 lakh was collected by way of
registration

fee.

During

the

year

2011-2012,

2,428 inspections were made. 791 cases were
compounded

and

collected

compounding

as

a

sum

of

Rs.2.12

fee.

34

lakh

cases

was
were

disposed of by the Courts and a sum of Rs.16,800/was imposed as fine.

11

The Working Journalists and Other Newspaper
Employees
(Conditions
of
Service
and
Miscellaneous Provisions) Act, 1955
The Act regulates the conditions of service of
working journalists and other persons employed in
newspaper

establishments.

The

remuneration

of

working journalists and other persons employed in
the newspaper establishments is fixed by the Wage
Board

constituted

by

the

Central

Government.

During the year 2011-2012, 57 inspections were
carried out.
The Industrial Employment (Standing Orders)
Act, 1946
The

Act

requires

employers

of

industrial

establishments to define conditions of employment of
workers under certified Standing Orders. The Zonal
Joint Commissioners of Labour have been notified as
Certifying Officers under this Act. During the year
2011-2012,

298

standing

establishments were certified.

12

orders

of

industrial

The Trade Unions Act, 1926
The Act provides for the registration of trade
unions and lays down the law relating to the
registration of trade unions.
The Regional Deputy Commissioners of Labour
have been notified as Additional Registrars of Trade
Unions to register the Trade Unions. The total
number

of

Trade

Unions registered

is

12,279.

During the year 2011-2012, 322 Trade Unions were
registered and a sum of Rs.46,500/- was collected as
registration fees and amendment fees.
The Plantations Labour Act, 1951
The
conditions

Act
of

provides
work

in

for

regulation

plantations.

The

of
Act

the
is

applicable to any land used or intended to be used
for growing Tea, Coffee, Rubber, Cinchona and
Cardamom. It mandates registration of plantations
with an extent of 5 hectares or more and employing
15 or more persons.

13

There are 2,219 Plantations covering an area
of 61,604 hectares and employing 84,695 workers in
Tamil Nadu. 678 registered plantations cover an area
of 53,232 hectares and employ 77,040 workers.
1,541 unregistered plantations cover an area of
8,372 hectares and employ 7,655 workers.
Under this Act, employers are to provide
housing, medical care, protective clothing, drinking
water, etc. free of cost to the workers. The Act is
enforced

by

10

Inspectors

of

Plantations

and

2 Medical Officers in the cadre of Assistant Civil
Surgeon

(Plantations)

of

this

department.

The Inspectors of Plantations are based in Ooty,
Coonoor, Kothagiri, Gudalur, Pandhalur, Valparai,
Yercaud,

Theni,

Batlagundu and

Nagercoil.

The

Medical Officers in the cadre of Assistant Civil
Surgeon (Plantations) inspect the dispensaries and
hospitals maintained by the employers. They are
based in Ooty and Nagercoil.
The Plantation Labour Housing Advisory Board,
a Statutory Board has been constituted under the

14

Chairmanship

of

the

Secretary

to

Government,

Labour and Employment Department. This Board
ensures provision of proper housing facilities to the
plantation labour.
The Plantation Labour Advisory Committee is a
tripartite committee headed by the Commissioner of
Labour.

This

committee

enforces

the

various

provisions of the Plantation Labour Act and Rules.
During the year 2011-2012, 1,924 inspections
were made.

91 cases were disposed of by the

Courts and a sum of Rs.3.54 lakh was levied as fine.
THE MINIMUM WAGES ACT, 1948
The Minimum Wages Act, 1948 provides for
fixing

minimum

rates

of

wages

in

certain

employments. This Act seeks to ensure not only the
sustenance of life but also preservation of efficiency
of the worker. The Act applies to the employments
that are included in the Schedule to the Act.
In Tamil Nadu, 91 employments have been included
in the Schedule. Minimum wages have been fixed for

15

72 employments such as shops and establishments,
general

engineering,

construction,

catering,

plantation, tanneries and leather manufacturing, etc.
The minimum wage is revised once in 4 years. While
fixing

the

minimum

wages,

variable

Dearness

Allowance is added to neutralise the cost of living.
The Regional Deputy Commissioners of Labour
have been notified as authorities to hear the claims
under Section 20(1) of the Minimum Wages Act.
During the year 2011-2012, 1,56,054 inspections
were carried out and 60 prosecutions were launched.
1,030 claims were disposed of and Rs.2.38 crore was
ordered to be paid to the claimants.
SOCIAL SECURITY
The

following

Acts

which

provide

social

security to workers are being enforced by the
Department:The Payment of Gratuity Act, 1972
The Act provides for the payment of gratuity
to the employees. Gratuity is paid to an employee on

16

superannuation/retirement or resignation, if he/she
has put in a continuous service for a period of not
less than five years. Gratuity is also paid on death
or disablement due to accident or disease.
The Assistant Commissioners of Labour in
the office of the Regional Deputy Commissioners
of

Labour,

have

been

notified

as

Controlling

Authorities and the Zonal Joint Commissioners of
Labour, as Appellate Authorities, under this Act.
During the year 2011-2012, 2,899 claims were
disposed of and a sum of Rs.2.87 crore was ordered
to be paid to the claimants.

The Payment of Bonus Act, 1965
The Act provides for the payment of bonus to
persons

employed,

on

the

basis

of

profit

or

production or productivity. The Act provides for the
payment of bonus to persons employed by factories
and establishments, where 10 or more persons are
employed. This Act applies to establishments covered
under the Act and bonus is payable even if the
number of employees subsequently falls below 10.

17

A minimum bonus of 8.33% has to be paid,
irrespective

of

establishments.

the

financial

condition

of

the

The Act prescribes a formula for

calculating the bonus when a company makes profit.
Every

employee

drawing

wages

not

exceeding

Rs.10,000/- per month and has worked for at least
30 days in an accounting year, is eligible for bonus.
Maximum bonus payable under the Act is 20%.

The Maternity Benefit Act, 1961
The Act regulates the employment of women
for certain periods before and after childbirth and
provides for

the payment of certain maternity

benefits.
This Act provides for 12 weeks leave with
wages for childbirth (6 weeks before delivery and
6 weeks after delivery), one-month medical leave on
medical

certificate

and

6

weeks

leave

for

miscarriage. It provides for the payment of medical
bonus of Rs.2,500/-, if no pre-natal and post-natal
care is provided by the employer free of cost. During
the year 2011-2012, 12,339 inspections were made.

18

The Equal Remuneration Act, 1976
The Act provides for the payment of equal
remuneration to men and women workers and for
the prevention of discrimination on the ground of sex
against
The

women

in

Government

Remuneration

the

matter

have

Advisory

of

employment.

constituted
Committee

an

(a

Equal

Tripartite

Committee) headed by the Secretary to Government,
Labour and Employment Department, to advise the
Government on increasing employment opportunities
for women. During the year 2011-2012,

13,210

inspections were made.
The Tamil Nadu Payment
Allowance Act, 1981
The

Act

subsistence

provides

allowance

for

of

Subsistence

the

during

the

payment

of

period

of

suspension. The Assistant Commissioners of Labour
in the office of the Regional Deputy Commissioners
of Labour have been notified as Authorities and the
Regional

Deputy

Commissioners

of

Labour

as

Appellate Authorities under this Act. During the year

19

2011-2012, 276 claims were disposed of and a sum
of Rs.58.50 lakh was ordered to be paid.
The Employees’ Compensation Act, 1923
The Act provides for compensation to workers
in the event of death or loss of earning capacity due
to accidents arising out of and in the course of their
employment. The Regional Deputy Commissioners of
Labour have been notified as Commissioners to hear
and decide on the claims under this Act.
The compensation amount awarded is to be
deposited by the employers/Insurance Companies.
In case of default in depositing the amount awarded,
the Deputy Commissioners of Labour initiate action
to recover the amount through District Collectors
under the Revenue Recovery Act.

During the year

2011-2012, 2,985 cases were disposed of and a sum
of Rs.23.10 crore was ordered to be paid as
compensation.

20

WELFARE OF BEEDI WORKERS
The Beedi and Cigar Workers (Conditions of
Employment) Act, 1966
The Act provides for the welfare of the workers
in beedi and cigar establishments and regulates
the conditions of their work. 2,37,029 beedi workers
(industrial

and

home

workers)

are

engaged

in 1,548 beedi establishments in the State. 4,180
inspections were made by the department and 438
cases were disposed of by the Courts with a fine of
Rs.1.11 lakh. A sum of Rs.1.22 lakh has been
collected as license fee for registration and renewal
of beedi establishments.
Revised Integrated Housing Scheme for Beedi
Workers
This scheme is intended to ameliorate the
housing

shortage

among

the

beedi

workers.

All the Welfare Schemes, including the Housing
Scheme for Beedi Workers, are being implemented
by the Government of India directly under the Beedi
Workers Welfare Fund Act, 1976.

21

The Revised Integrated Housing Scheme, 2007
for beedi workers is being implemented through
the Welfare Commissioner under Labour Welfare
Organisation

of

the

Union

Ministry

of

Labour.

The unit cost of each dwelling unit is Rs.45,000/-.
The Government of India provides a subsidy of
Rs.40,000/- to the beneficiary. The beneficiary is
expected to contribute Rs.5000/- as his share.
In lieu of the workers contribution,

the State

Government have ordered to provide a subsidy of
Rs.5,000/-

per

house,

which

is

released

to

the Welfare Commissioner, Hyderabad after the
administrative approval is granted.
Due to hike in cost of raw materials and labour
charges, most of the beedi workers are unable to
construct houses on their own at the unit cost of
Rs.45,000/- per house. The beneficiary has to own a
house site for being eligible to avail subsidy under
this scheme. Because of all these constraints, only
785 beneficiaries could avail benefit under the
scheme for the past 4 years.

22

Revision of unit cost and enhancement of
subsidy
The State Government have examined the
matter

in

the

light

of

various

representations

received and the difficulties faced by the beedi
workers. The State Government have issued orders
increasing the unit cost for construction of the house
from Rs.45,000/- to Rs.1,00,000/- on par with the
unit cost of houses constructed under the Indira
Awas Yojana Scheme. The State Government have
enhanced

the

subsidy

from

Rs.5,000/-

to

Rs.60,000/- per house. There by, the beedi workers
can avail Rs.1.00 lakh for construction of their
house.

CONSUMER PROTECTION
The Legal Metrology Act, 2009
The Legal Metrology Act, 2009 establishes and
enforces
It

standards

regulates

trade

measures and

other

of

weights

and

and

commerce

goods which

measures.
in

are sold

distributed by weight, measure or number.

23

weights,
or

The

Deputy

Commissioner

of

Labour

(Inspections), Chennai has been notified as the
Controller of Legal Metrology for the entire State of
Tamil Nadu.

The Controller of Legal Metrology and

his field officers enforce the Legal Metrology Act,
2009

and

the

Legal

Metrology

(Packaged

Commodities) Rules, 2011.
During

the

year

2011-2012,

a

sum

of

Rs.72.92 lakh has been collected as license fee and
Rs.18.95 crore has been collected as stamping fee.
3,53,539 inspections were made. During the year
2011-2012, 8,658 cases were compounded and
Rs.63.51 lakh has been collected as compounding
fee. 10 cases were disposed of by the Courts and
Rs.9,600/- was imposed as fine.
The Legal Metrology (Packaged Commodities)
Rules, 2011
During

the

year

2011-2012,

a

sum

of

Rs.95,205/- has been collected as Registration fee
for issue of Registration certificates for packing of
commodities.

1,34,802

inspections

24

were

made.

3,879 cases were compounded and a sum of
Rs.30.92 lakh was collected by the Department.
Rs.30,600/- was imposed as fine in 18 cases by
court.
ERADICATION OF CHILD LABOUR
The

State

Government

attaches

great

importance to the eradication of child labour and has
taken various steps to eradicate this social evil. The
number of child labour in the State has decreased
from 4.19 lakh in 2001 to 13,446 in 2011. Strict and
Vigilant enforcement coupled with mainstreaming of
rescued Child Labour are the corner stones of this
approach.
Enforcement
Enforcement is one of the important strategies
of the action plan for eradication of Child Labour.
In order to strengthen enforcement and launch a
multi stakeholder attack on this practice, a District
Level Task Force has been constituted in all districts
under the chairmanship of the District Collector.

25

The

following

statutes,

prohibiting

employment

of children, are implemented by the Inspectors
of Labour and Inspectors of Factories:1. The Child Labour (Prohibition and Regulation)
Act, 1986.
2. The Factories Act, 1948.
3. The Motor Transport Workers Act, 1961.
4. The Beedi and Cigar Workers (Conditions of
Employment) Act, 1966.
5. The Tamil Nadu Shops and Establishments Act,
1947.
6. The Tamil Nadu Catering Establishments Act,
1958.
During

the

establishments
special

and

year

were

surprise

2011-2012,

inspected

through

inspections,

1,26,264
regular,

including

the

raids conducted by the teams formed under the
District Level Task Force. 60 Violations noticed,
23 prosecutions lodged and child labour rescued and
rehabilitated. 26 cases (including previous pending)
ended in conviction and a fine of Rs.3.05 lakh has
been collected.

26

Awareness Generation
June 12th

in

every year

is observed

as

“Anti Child Labour Day” to create awareness among
the public. All districts have taken up various
activities for awareness creation like oath taking in
schools and Government offices, rallies, human
chains and awareness campaigns. At the state level
Anti Child Labour Day, message from the Hon’ble
Chief Minister was published in various Tamil and
English dailies.
Hon’ble Chief Minister awarded the shield to
the District Collector of Salem for the outstanding
performance in eradication of child labour for the
year 2009. The award was presented during the
Collectors’ Conference held on 14.11.2011.
Children’s day celebrations organised at the
State level, was attended by the Hon’ble Minister for
Labour, Worshipful Mayor of Chennai Corporation
and other dignitaries. A large contingent of National
Child Labour Project school children and NGOs
working in the sector attended.

27

Mainstreamed students from National Child
Labour Project Special Schools who scored high
marks

in

10th

and

12th

Standard

Public

Examinations were given cash awards and the best
Special Training Centre teachers were felicitated for
their work.
National Child Labour Project
National
implemented
Coimbatore,

Child
in

the

Labour
16

Dindigul,

Project

districts

is

being

of

Chennai,

Dharmapuri,

Erode,

Krishnagiri, Kancheepuram, Namakkal, Thoothukudi,
Tirunelveli,

Tiruvallur,

Trichy,

Tiruvannamalai,

Salem, Vellore and Virudhunagar.
12,920 rescued child labour are studying in
359 special training centres.

3,357 children were

mainstreamed during the academic year 2011-12.
A stipend of Rs.150/- p.m., educational materials
and Pre vocational training are provided to children
under the NCLP.

Mid-day meal, free uniform, free

medical checkup and free bus pass are provided by
the State Government to all the NCLP Children.

28

A cash assistance of Rs.250/- per month was
provided to all mainstreamed child labour pursuing
higher studies. The State Government have now
issued orders enhancing the assistance to Rs.500/-.
This

will

be

mainstreamed

available
from

for

NCLP

and

all

child

pursuing

labour,
higher

studies in Arts colleges, Polytechnics and Professional
colleges and will be available to them till they
complete the course.
Integrated Child Protection Programme
Dharmapuri and Salem Districts

in

Integrated Child Protection Programme (ICPP)
is being implemented in collaboration with UNICEF
to improve the quality of life for children up to the
age of 14 years engaged in employment in cotton
seed

and

cotton

farming

in

the

Districts

of

Dharmapuri and Salem.
150 Para Teachers and 30 Block Coordinators
appointed During the year 2010-2011, were provided
Activity Based Learning training.

Village level child

rights committee meetings were conducted every

29

month and child friendly village planning exercises
were

undertaken

in

175

Village

Panchayats.

Workshops were conducted for cotton seed farmers
and line Department officials in 50 Panchayats.
Water and sanitation surveys were completed
in all the Government schools. Concerned officials
have been requested for providing these facilities,
wherever

absent.

The

Commissioner

of

Labour

monitors and reviews the progress of the project
every Quarter.
TAMIL NADU LABOUR WELFARE BOARD
The Tamil Nadu Labour Welfare Board was
constituted under the Tamil Nadu Labour Welfare
Fund Act, 1972 in the year 1975.

It implements

various welfare schemes for the benefit of the
organised labour on a contributory basis. The Hon’ble
Minister for Labour is the Chairman of the Board.
The
5

Board

has

Employers’

5

Employees’

representatives,

30

representatives,
4

Government

representatives,

3

Members

of

the

Legislative

Assembly and 2 Women representatives.
In order to implement various labour welfare
schemes, the Tamil Nadu Labour Welfare Board
receives
and

contributions

employers

Motor

Transport

Catering

of

from

the

the

employees

Factories,

Plantations,

Undertakings

Establishments.

and

Shops

and

The employees of the

above establishments contribute Rs.7/- and the
employers contribute Rs.14/- per worker per year.
The Government of Tamil Nadu contributes Rs.7/-.
The Board also receives fine amount imposed by the
Courts and also compounding fees collected by the
Labour

department

against

the

employers

for

violation of various Labour Acts and Rules.
Financial Assistance
The Board runs 71 welfare centers where
facilities like pre-school, reading room and tailoring
training facilities are made available. During the year
2011-2012,

25,424 workers and their wards have

availed assistance and an amount of Rs.1.05 crore

31

has been spent on various welfare schemes as
indicated below:Labour Welfare Schemes
1

Labour Welfare
Centres

2

Scholarships for
various courses

Have facilities like Tailoring
Section,
Pre-school
and
Reading Room.
Post Graduate
Course
- Rs.3,000/-,
Graduate Course - Rs.2,400/-,
Diploma Course - Rs.1,440/-,
Higher Secondary
Course - Rs.1,200/I.T.I. Course - Rs.1,000/-.

3

Educational
incentive

S.S.L.C. and Higher
Secondary Course
1st Prize Rs.1,000/-,
2nd Prize Rs.500/- and
3rd Prize Rs.250/-in each
Educational District

4

Book allowance

Post-Graduate
Course - Rs.750/-,
Graduate Course - Rs.500/-,
Diploma Course - Rs.250/and Higher Secondary
Course - Rs.180/-

5

Assistance for
Basic Computer
Training

Rs.1,000/- for five employees/
dependants in each district.

32

6

Marriage
assistance

Rs.5,000 for female

7

Spectacles
assistance

Up to Rs.500/-

8

Typewriting/
Shorthand
assistance

Typewriting in Higher
Rs.600/-,
Typewriting in Lower

Rs.3,000/- for male workers
and their wards.

Rs.1,000/-,
Shorthand Inter High Speed
Rs.750/-,
Shorthand Lower and Higher
Rs.1500/9

Funeral
Expenses

Rs.2,000/- to the Legal Heir.

Hearing Aid,
Artificial Limbs
& Three
Wheelers

Up to Rs.1,000/- for
Hearing Aid,

11

T.B. Wards in
various
sanatoria

Tiruppur, Tambaram
Sanatorium, Asaripallam
(Kanyakumari), Austinpatti
(Madurai) & Kizhpennathur
(Tiruvannamalai District)

12

Holiday Homes
for workers

Mamallapuram, Courtallam
and Valparai.

13

Jeeva Illam,
Chennai.

A rest house for Trade Union
Representatives

10

Govt. prescribed fee for
artificial limbs and free supply
of three wheelers.

33

Magazine for Workers
The Board brings out a monthly magazine
“Uzhaippavar
judgments,

Ulagam”,
labour

which

Acts,

consists

of

court

question and answers,

consumer price index for the benefit of the workers,
employers

and

also

the

public.

At

present,

5,462 members have subscribed to this magazine.
The price of the magazine is Rs.7/- per copy and
an annual subscription Rs.80/-; life subscription
Rs.750/-.
UNORGANISED WORKERS WELFARE BOARDS
The Tamil Nadu Manual Workers (Regulation
of Employment and Conditions of Work) Act, 1982
regulates the employment of manual workers, their
conditions of work, security of their employment and
provides for social security to manual workers
engaged in 69 employments included in the Schedule
to the Act. Tamil Nadu was one of the pioneer states
to promulgate such an Act. The State Government
have established 17 Unorganised Workers Welfare
Boards under the Act.

34

Tamil Nadu
Board

Construction

Workers

Welfare

Under section 6 of the Tamil Nadu Manual
Workers (Regulation of Employment and Conditions
of

Work)

Act,

1982,

the

State

Government

established the Tamil Nadu Construction Workers
Welfare Board on 30.11.1994 and formulated the
Tamil Nadu Manual Workers (Construction Workers)
Welfare Scheme in 1994.
The scheme provides welfare measures for
manual

workers

engaged

in

construction

or

maintenance of dams, bridges, roads or in any other
building

operation.

implementing

The

financial

resources

for

the scheme are drawn from

the

“Manual Workers General Welfare Fund”. The State
Government have notified that all individuals or
agencies engaged in any construction work shall
pay 0.3% of the total estimated cost of the proposed
construction work towards the fund. The fund is
collected by local bodies

while sanctioning the

building permit and remitted to the Tamil Nadu
Construction Workers Welfare Board.

35

Registration
A construction worker who has completed
eighteen years of age but has not completed sixty
years and is engaged in any of the thirty eight
classes of construction work (Annexure I to the
scheme) may register his name with the Board.
The registration is valid for two years and may be
renewed thereafter. No registration or renewal fee is
charged. The registered workers are issued identity
cards with registration numbers. 22,04,589 workers
have registered with the Board from its inception
till 31.03.2012.
Tamil Nadu Manual Workers Welfare Board and
15 other Boards
The Government further constituted the Tamil
Nadu Manual Workers Welfare Board on 17.03.1999
and formulated the Tamil Nadu Manual Workers
Social Security and Welfare Scheme, 2001. This was
later substituted by the Tamil Nadu Manual Workers
Social Security and Welfare Scheme, 2006.

36

Registration
A manual worker who has completed eighteen
years of age but has not completed sixty years and
is engaged in any of the sixty nine employments
specified in the schedule to the Tamil Nadu Manual
Workers (Regulation of Employment and Conditions
of Work) Act, 1982 may register his name with these
Boards. The registration is valid for two years and
may be renewed thereafter. No registration or
renewal fee is charged. The registered workers are
issued identity cards with registration numbers.
33,24,116

workers

have

registered

with

these

Boards from its inception, till 31.03.2012.
Assistance under Welfare Schemes
Financial
registered

assistances

manual

workers

are
in

the

provided

Unorganised

Workers Welfare Boards as detailed below :-

37

to

Welfare Schemes of Unorganised Workers
Welfare Boards
Sl.
No.
1

Type of Assistance

Amount
(In Rupees)

Accident Relief Scheme
a) Accidental Death

1,00,000

b) Accidental Disability
(based on extent of
Disability)

up to
1,00,000

2

Natural Death Assistance

3

Funeral expenses Assistance

4

Educational Assistance

15,000
2,000

a) Girl Children studying 10th

1,000

b) 10th passed

1,000

c) Girl Children studying 11th

1,000

d) Girl Children studying 12th

1,500

e) 12th passed

1,500

f) Regular Degree Course
with Hostel facility

1,500
1,750

g) Regular Post Graduate
Course
with Hostel facility

2,000
3,000

38

h) Professional Degree
Course
with Hostel facility

2,000
4,000

i) Professional P. G Course
with Hostel facility

4,000
6,000

j) ITI or Polytechnic
with Hostel facility

1,000
1,200

5

Marriage Assistance
(a) For men
(b) For women

3,000
5,000

6

Maternity Assistance
Miscarriage / Medical
Termination of Pregnancy

6,000
3,000

7

Reimbursement of cost of
Spectacles

8

Pension

1,000
per month

9

Family Pension (applicable
only
to
Tamil
Nadu
Construction Workers Welfare
Board)

400
per month

39

up to 500

Social Security offices in the districts
The functions of the Welfare Boards have been
decentralized by setting up Social Security offices
headed by a Labour Officer in all the Districts with
effect

from

01.11.2008.

Registration,

Renewal,

Processing of Claim petitions and disbursement
of assistance to the manual workers registered in all
the 17 Welfare Boards are being done by this office.
The

District

monitoring

committee,

headed

by

the District Collector, monitors and supervises the
administration of the Social Security Scheme.
Financial resources
The boards are provided funds for taking up
various schemes through collection of welfare cess /
Government grants.
Tamil Nadu
Board

Construction

Workers

Welfare

Every person who makes an application for
building permit to a local authority for any building /
construction work is liable to

40

pay construction

workers welfare cess at such percentage of the total
estimated cost of the building or construction work
as fixed by the Government.
At present, the Government notified 0.3% of
the estimated cost of such work/construction as cess
under the act, which provides necessary finance to
Tamil Nadu Construction Workers Welfare Board.
This cess is collected by local authorities while
sanctioning building permit and remitted to Tamil
Nadu Construction Workers Welfare Board. In case of
construction works, in which building permit is not
necessary, this cess has to be remitted directly to
Tamil Nadu Construction Workers Welfare Board by
the person who undertakes such construction work.
During the period from 01.04.2011 to 31.03.2012,
a sum of Rs.94.78 crore was collected as cess.
Tamil Nadu Auto Rickshaw and Taxi Drivers
Welfare Board
This Board functions on its own fund received
from the additional tax of 1% on Motor Vehicle Tax,
payable under the Tamil Nadu Motor Vehicle Taxation
Act. This is collected from motor transport employers

41

carrying passengers or goods on roads. During the
period from 01.04.2011 to 31.03.2012, a sum of
Rs.9.01 crore was collected as tax.
Tamil Nadu Manual Workers Welfare Board
The Government provides grants to Tamil
Nadu Manual Workers Welfare Board (TNMWWB) and
other 15 Welfare Boards for implementing welfare
schemes. Government have sanctioned a sum of
Rs.73.40 crore for the year 2011-2012.
Registration,
assistance

Beneficiaries

and

Welfare

During the year 2011-2012, in the Tamil Nadu
Construction

Workers

Welfare

Board,

1,08,394

workers were registered and a sum of Rs.29.53 crore
has

been

disbursed

to

1,20,243

beneficiaries

as welfare assistance. The Tamil Nadu Manual
Workers Welfare Board and 14 other welfare Boards
have registered 2,82,758 workers and a sum of
Rs.72

crores

has

3,49,364

beneficiaries.

Rickshaw

and

Taxi

been
The
Drivers

42

released
Tamil

to

the

Nadu

Auto

Workers

Welfare

Board

have

registered

12,478

workers

and

10,060 beneficiaries have availed the assistance for
Rs.2.13 crores.

TAMILNADU INSTITUTE OF LABOUR STUDIES
Tamil Nadu Institute of Labour Studies was
established

in

1973

by

the

Government

of

Tamil Nadu. It was registered as a society under the
Tamil Nadu Societies Registration Act, 1975 on
08.10.1987. It started functioning as an autonomous
body with effect from 01.04.1988. The expenditure
needed for running the institute is provided as a
Grant-in-aid by the Government of Tamil Nadu.
The Governing Committee is chaired by the Hon’ble
Minister for Labour. The main objectives of this
institute are:1. Conduct graduate, Post-graduate and Ph.D.,
programmes

in

Labour

Management

and

award such degrees, diploma certificates.
2. To impart knowledge and skills to prospective
and practicing managers, administrators and

43

office

bearers

of

Trade

Unions

through

teaching and training.
3. To organise training programmes, seminars on
laws on Weights and Measures for the benefit
of the consumers and the inspectorate and to
carry on surveys in that regard.
4. Carry out research into matters concerning
personnel management and labour welfare.
5. Co-operate and collaborate from time to time,
with educational and other institutions both in
India and abroad as existing or as may be
founded in future by exchange of teachers and
scholars and through joint programmes of
research, training and consultancy generally in
such manner as may be conducive to the
furtherance of objects of the Society;
Academic courses
The

Institute

Management)

and

is

conducting

M.A.

(Labour

B.A.

(Labour

Management)

course and is affiliated to the University of Madras.
The University of Madras has recognised the Institute
for conducting research and it conducts part time

44

and

full

time

Ph.D.

Management from

programmes

2001 onwards.

on

Labour

A part time

(evening) one year “Post Graduate Diploma in
Labour Administration” (PGDLA) is offered by the
institute

to

cater

to

the

needs

of

employed

personnel.

Capacity Building
The Institute periodically conducts Training
Programmes,

Seminars,

Refresher

Courses,

Orientation Programmes, etc. to cater to the needs
of supervisory and managerial personnel of private
and public sector industries, trade unions, officials of
Labour and Factories Department. 30 seminars /
training programmes benefiting 2,316 persons have
been conducted, during the year 2011-2012.

45

Collaboration with V.V. Giri National Labour
Institute
Two Training Programmes were conducted in
collaboration with V.V. Giri National Labour Institute.
They are:1. “Effective Enforcement of Labour Laws” for the
officers of the Labour Department and the
Inspectorate of Factories;
2. “Role

of

Conciliation

and

Quasi-Judicial

Officials of Labour Department” for officers of
the Labour Department.

Certificate Course in Safety & Health
A one month Certificate Course in “Safety &
Health

for

Supervisory

Personnel

working

in

Hazardous Process” was conducted for the benefit of
employees of various factories.

46

II. DEPARTMENT OF INSPECTORATE OF
FACTORIES

The Department of Inspectorate of Factories is
effectively

enforcing

the

Factories

Act,

1948,

14 other Labour Legislations and two technical rules,
governing Occupational Health, Safety and Welfare,
in Factories registered under the Factories Act, so as
to protect the interests of the workers by ensuring
basic

amenities,

safe

and

conducive

working

environment and to prevent Occupational Diseases
and control accidents.
The following two functions are broadly carried
out by the Inspectorate:I.

Regulatory Functions

II.

Health,
Safety,
Training
Development Functions

47

and

REGULATORY FUNCTIONS
Inspections
To

ensure

compliance

of

all

statutory

requirements of various Legislations and welfare
measures, Inspections are carried out regularly by
the officials of this department as detailed below:(i)

Factories certified as Small Scale Industries
and not engaged in dangerous operations are
inspected only once in a period of five years,
provided, no complaints are received or
there is no incidence of accidents.

(ii) Factories certified as Small Scale Industries
but engaged in Dangerous Operations as
stipulated under section 87 of Factories Act,
1948 and Non – SSI units are inspected once
in a period of six months.
(iii) Match and Fire Works Factories are inspected
once in every three months because of the
risk involved in the nature of work and to
eradicate Child Labour employment.
(iv) In addition, special, holiday and check
inspections are also undertaken for better

48

monitoring of the safety, health and welfare
provisions.
As mentioned above, 31,283 Inspections have
been made from 01.04.2011 to 31.03.2012.

Registration of Factories
Small Factories unaware of the legalities do
not themselves come forward to register
Factories

and

to

function

with

license.

their
These

Factories, by the special efforts of the Inspectorate
are being identified and brought under the purview
of Factories Act, 1948 thereby ensuring Safety,
Health and Welfare measures for the workers in
these Factories. From 01.04.2011 to 31.03.2012,
2111 new Factories have been brought under the
purview of the Factories Act, 1948.
Complaints
This Inspectorate takes immediate action to
sort out the grievances raised by the workers and
trade

unions.

From

01.04.2011

49

to

31.03.2012,

512

Complaints

have

been

received

and

the

complaints have been enquired and disposed off.

Enforcement of Minimum Wages Act, 1948
The Minimum Wages Act, which provides for
the protection of the wage conditions of the workers
and raises their standard of living, is strictly enforced
by this Inspectorate to ensure payment of Minimum
Wages.

During the year 2011-2012, 13 cases with

a claim of Rs.80.92 lakh benefiting 1,602 persons
have been settled under Section 20(1) of the
Minimum Wages Act.
have

also

been

Moreover, 79 prosecutions

launched

and

fine

amount

of

Rs.29,150/- have been realised.
The Tamil Nadu Industrial Establishments
(Conferment of Permanent Status to Workmen)
Act, 1981
The

Tamil

Nadu

Industrial

Establishments

(Conferment of Permanent Status to Workmen) Act,
1981 implemented by this Inspectorate, confers
permanent status to workmen who have put in
continuous service of 480 days within a period of

50

24 calendar months.

Due to the intensive effort of

the officers of this Inspectorate, 39,026 workers
have been made permanent from 01.04.2011 to
31.03.2012.
Squad Inspections
a) Child Labour
Child Labour which is considered a Social
menace is given top priority and the provisions
prohibiting employment are strictly enforced by this
Department for total eradication of Child Labour by
conducting Squad Inspections every month along
with officials of the Department of Revenue, Police
and Members of National Child Labour Project.
From 01.04.2011 to 31.03.2012, 1,211 Squad
Inspections have been conducted. Further, 41 cases
have been launched wherein 24 cases have ended in
conviction and a fine amount of Rs.3.50 lakh have
been realised.

51

b) Firework Factories
Due to the risk involved in the nature of work
and

to

monitor

the

safe

adherence

of

safety

provisions in the Fireworks manufacturing Factories,
particularly during the Deepavali season, when there
is a large scale activity, special squad inspections are
carried out every year along with officials of the
Departments of Revenue, Police, Fire, etc.
the

year

2011,

860

Squad

During

Inspections

were

conducted and appropriate action initiated against
the erring managements.

Site Appraisal Committee
Site Appraisal Committee has been constituted
under section 41A of the Factories Act, 1948 in this
Department

for

the

purpose

of

advising

the

Government to consider the application for grant of
permission for the initial location or expansion of the
Factories involving hazardous process has considered
69 applications from 01.04.2011 to 31.03.2012.

52

Hazardous Process Industries
In certain industries, the use of higher
quantity of raw materials or chemicals are likely to
cause

material

impairment,

thereby

safety

and

health of the persons engaged in or connected
therewith will be affected or may result in the
pollution of the general environment and such of
those

industries are classified as Major Accident

Hazard Units. A Major Accident Hazard Control Cell
has been formed at Headquarters to recommend the
suitable safety measures to the Major Accident
Hazard Factories to prevent Industrial disasters and
also monitors the compliance of the suggestions
given by it. 29 processes have been listed as
hazardous process and from among them, 115 units
have been classified as Major Accident Hazard units
in the State. 108 Onsite Emergency plans have been
received upto March 2012, out of which 100 were
recorded subject to certain conditions. The plans in
respect of 8 industries are under consideration.
District Collectors have been nominated as the
District

Emergency

Authority

in

respect

of

Off-site Emergency Plans and the Chief Inspector of

53

Factories as the authority for the On-site Emergency
Plans.
Further to assess and update the operational
efficiency in the event of real emergency, Mock Drills
are conducted periodically in these Factories under
the supervision of the officers of this Department.
HEALTH, SAFETY, TRAINING AND
DEVELOPMENT FUNCTIONS
Pressure Vessel Testing
This

Department,

apart

from

regular

enforcement of Labour Laws conducts various tests
like External, Internal, Hydrostatic, and Ultrasonic
Examinations to ensure operational Safety of the
pressure vessels installed in the Factories which are
operated

above

atmospheric

pressure

but

not

covered under Indian Boilers Act. 1,02,919 External,
1,377

Internal,

17,508

Hydrostatic

and

5,080

Ultrasonic Examinations have been conducted from
01.04.2011 to 31.03.2012.

54

Occupational Health Monitoring
The Chief Medical Officer of the Medical Wing
functioning

in

this

department

conducts

Health

Surveys and Industrial Hygiene Surveys in Factories
at periodical intervals and recommends suitable
remedial

measures

where

Occupational

Health

Hazards are noticed.
The Medical Officers at the district

level

conduct periodical Medical Examinations to workers
engaged in Dangerous Operation and to workers in
canteen and issue fitness certificates.

They also

certify the Adolescents working in Factories and
accompany the Child Labour squad to ascertain the
age of the child Labour, if identified.
State Safety Awards
Safety
managements

Awards
every

are
year

presented
based

to
on

the
their

performance in reducing accidents in their Factories.
With a view to encourage the Factory managements
to perform with better safety performance, the

55

existing State Safety Award value of 1st prize
awarded to 90 managements have been enhanced
from Rs.2500/- to Rs.5000/- for each shield and the
State Safety Award value of the II prize awarded to
90

managements

have

been

enhanced

from

Rs.1500/- to Rs.4000/- for each shield.
Shram Vir Awards
To encourage the workers, Shram Vir Awards
popularly

styled

as

“Tamilaga

Arasin

Uyarntha

Uzhaipalar Virudhu” are presented every year to
those who make outstanding and useful suggestions
for the improvement in Safety standards, better
working

environments

and

improvement

in

productivity.
Special Safety Awards for Firework Factories
Special Safety Awards are presented annually
to the Firework Factory managements which perform
with better safety performance without any accident.
Under this Scheme, every year 3 first prizes (Silver
Shields) worth Rs.15,000/- each; 3 second Prizes

56

(Silver Shields) worth Rs.12,000/- each; and 3 third
prizes (Silver Shields) worth Rs.10,000/- each are
given to the Managements.
For selection of managements and workers for
such awards, the State Government have already
formed Committee headed by the Chief Inspector of
Factories, with experts in the respective fields as its
members.
Safety Propaganda Committee
To educate the managements and workers
about the safety precautions to be followed to avert
accidents and

to review

safety mechanisms in

Chemical Factories, Firework Factories, Tanneries
and Bleaching & Dyeing Units, the three Safety
Propaganda

Committees

constituted

by

this

department at Chennai, Madurai and Coimbatore
have conducted 79 safety awareness campaigns
from 01.04.2011 to 31.03.2012.

57

Group Personal Accident Insurance Scheme
Under the Group Personal Accident Insurance
Scheme,

with

coverage

of

Rs.50,000/-

made

mandatory on the part of the employer, to render
relief in case of death, loss of limbs, loss of
eye-sight, etc., of the insured workers in Match and
Fireworks Factories in Tamil Nadu, 1,11,402 workers
have

been

covered

during

the

period

from

01.07.2011 to 31.03.2012. The payment of accident
insurance is also given to the injured on 24 hour
basis and is not confined to accidents arising out of
or in the course of the actual occupation alone.
Safety Training
To educate the workers and managements on
the

importance

of

Safety,

training

classes

are

conducted by the district level officers in Factory
premises itself in Tamil version at free of cost. From
01.04.2011 to 31.03.2012, 483 training classes
benefiting 22,852 persons have been conducted.

58

Building and Other Construction Workers Act
and Rules
The officers of the Inspectorate of Factories
notified as Enforcement Officers under the Building
and Other Construction Workers Act and Rules are
inspecting and registering the establishments to
prevent accidents and to ensure welfare measures
for the workers in the construction industry. From
01.04.2011 to 31.03.2012, 965 Establishments have
been registered and 282 cases have been launched
wherein 124 cases have ended in conviction and
a fine amount of Rs.1.26 lakh have been realized.
Strengthening of Factory Inspectorate
For the effective implementation of various
Legislations and welfare measures for ensuring one
of the most important policies of the Government to
protect the interest of the workers, the activities of
the

department

are

being

modernized

and

strengthened. During the year 2011-2012, budgetary
allotment

of

Rs.75.00

Lakh

and

Rs.2.80

Lakh

respectively was made for replacement of 14 old
vehicles with new vehicles and purchase of computer
accessories and equipments.

59

Additional Provisions
Fireworks Factories
To

curtail

the

relating

alarming

to

Safety

increase

in

in

the

frequency of accidents and to achieve accident free
atmosphere in the Firework Factories, additional
provisions relating to safety have been incorporated
in the Schedule XXIV, under Rule 95 of the Tamil
Nadu Factories Rules, 1950.

60

III. DEPARTMENT OF EMPLOYMENT AND
TRAINING
EMPLOYMENT WING

Employment Exchanges register candidates,
nominate them to employers and render vocational
guidance.

Employment Exchanges also collect and

compile labour market information and prepare
youth for various competitive examinations.

Organizational Structure
There is an Employment Exchange in all the
32 Revenue Districts in the State. Apart from these
there is a Special Employment Office for Differently
Abled in Chennai to assist the Differently Abled
Registrants. There is also an exclusive office in
Chennai to cater to the needs of the Unskilled and
Technical Personnel. There are two Professional and
Executive Employment Offices functioning, one at
Chennai and the other at Madurai.
Five Coaching-cum-Guidance Centers function
exclusively

for

Scheduled

61

Caste

and

Scheduled

Tribes at Tiruchirappalli, Cuddalore, Coimbatore,
Vellore and Tirunelveli, and also a Special Vocational
Guidance Centre for Tribal Population which functions
at Udhagamandalam.
There are four Regional Deputy Directors
(Employment)

Offices

functioning

at

Chennai,

Tiruchirappalli, Madurai and Coimbatore. There are
3 Joint Directors and 2 Deputy Directors functioning
at Headquarters at Chennai.

The overall control of

the Department is vested with the Director of
Employment and training.
Performance of the Employment Exchanges
The Employment Exchanges are computerized.
They undertake registration, renewal, issuing of
identity card, nominating the registrants to various
employers as and when they notify the vacancies
etc.

During

the

year

2011-2012,

10,65,164

candidates have registered with the Employment
Exchanges in the entire State. As on 31.03.2012,
there are 75,03,767 candidates waiting on the Live
Register of the Employment Exchanges in the State.

62

During 2011, 4,79,717 HSC and 7,02,962 SSLC
passed students were registered online at their
school

premises

using

web

enabled

online

registration facility.
Implementation of the Employment Exchanges
(Compulsory Notification of Vacancies) Act,
1959.
As

per

the

Employment

Exchanges

(Compulsory Notification of Vacancies) Act, 1959,
the number of establishments addressed and the
number of employees in the establishments covered
in respect of Public and Private Sectors for the period
upto 30.09.2011 are given below:Sl.
No.

1

2

3

Item

For the period upto
30.09.2011
Public
Private
Sector
Sector

Number of
Establishments
addressed

12,299

14,168

Number of
Establishments
Responded

12,258

13,670

Total Employment

14,35,882

63

9,00,066

Vocational Guidance Activities
There are 17 Vocational Guidance Units in
Tamil

Nadu.

on

higher

The

youth

education,

self-employment
information

are

is

given

employment

opportunities.
given

information

to

job

and

Individual

seekers;

group

discussions are conducted and occupational and
apprenticeship information provided to the students.
These units also conduct career talks, contact
employers for information on Job opportunities,
conduct career guidance exhibitions and seminars in
educational institutions. Through these units, youth
are

guided

education,

to

take

career

employment

decision
and

on

higher

competitive

examinations.
In 2011-12, 29,894 candidates were sent for
apprenticeship training, 1,032 career talks were
given and 31 career exhibitions were conducted.
10,354

candidates

were

self-employment.

64

given

counselling

for

Study Circles
In order to train youth who appear for various
competitive

examinations,

study

circles

were

established in 30 Districts. In 2003, the Hon’ble
Chief Minister ordered the extension of the Study
Circles to 385 Panchayat Unions in the State.
The Study Circles conduct coaching classes for
various competitive examinations. For this purpose,
suitable books, monthly and weekly magazines and
study material are provided to the youth. Every year
Rs.64.20

Lakh

is

spent

under

this

scheme.

In 2011-12, 894 students benefitted from this
scheme.
Private Sector Placements
With the rapid industrial development of Tamil
Nadu, opportunities in the Private Sector have
increased tremendously. The Employment Exchanges
are taking several proactive initiatives for the benefit
of unemployed youth in getting Private Sector

65

Placement. In 2011-12, 10,701 persons were placed
in Private Sector.

Special Cells for Differently Abled Persons
There is an exclusive Special Employment
office for the Differently Abled Persons functioning at
Santhome, Chennai.

Apart from this, there are

13 Special Cells in Coimbatore, Erode, Cuddalore,
Madurai, Nagercoil, Kancheepuram, Tiruchirappalli,
Salem,

Tuticorin,

Tirunelveli

and

Thanjavur,

Vellore.

Udagamandalam,

These

offices

identify

suitable placement opportunities for the Differently
Abled Registrants.

There are 1,03,321 Differently

Abled Persons on the Live Register of Employment
Exchanges.

This

Handicapped;

includes

10,888

82,410

visually

Orthopedically
impaired

10,023 Hearing Impaired candidates.
year 2011-2012,

and

During the

1,031 Differently Abled Persons

were placed.

66

Coaching-Cum-Guidance Centers for Scheduled
Castes / Scheduled Tribes
There are 5 Coaching-Cum-Guidance Centers
meant for Scheduled Castes/Scheduled Tribes youth
functioning at Coimbatore, Cuddalore, Tiruchirappali,
Tirunelveli and Vellore.
These centers provide vocational and career
guidance to youth from SC and ST communities.
They conduct confidence building programmes for
them.

They

arrange

shorthand/typing

training

facilities for Scheduled Castes and Scheduled Tribes
job seekers. These centres also co-ordinate with the
local Employment Exchanges for conducting Career
Guidance Programmes specially meant for Scheduled
Castes and Scheduled Tribes.
Apart from counseling services, these Centres
periodically

organize

pre-examination

Training

Courses for the Scheduled Castes/Scheduled Tribes
youth

appearing

examinations.

for

6,333

various

Scheduled

competitive
Castes

and

Scheduled Tribes candidates benefitted during the
year

2011-2012.

The

67

Department

organized

124 motivational programmes for Self Employment
and 241 career talks were given for the youth and
forwarded 2,468 applications to the nationalized
banks for financing self employment ventures.
Special Vocational Guidance Centre for Tribal
Youth
There is a Special Vocational Guidance Centre
functioning at Udagamandalam. This Centre provides
guidance to students and job seekers belonging to
tribal

community.

They

collect

information

on

training facilities and publish information brochures
for the benefit of tribal youth.

The Vocational

Guidance Unit visits the educational institutions and
hostels run for the benefit of the Scheduled Tribes
and deliver career talks. They also provide the tribal
youth

with

information

on

higher

education,

professional courses, training facilities, scholarships
and job opportunities.

68

This

unit

scheduled

also

tribes

does

spot

applicants.

registration
In

of

2011-12,

428 applicants were given spot registration 438 tribal
youth were counseled and 416 applicants received
individual

information.

45

career

talks

delivered by the District Employment Officer.

were
The

District Employment Officer visited 40 Tribal Schools
and Hostels during this period for counseling the
students.
Unemployment Assistance Scheme
Unemployment Assistance is given to those
who are waiting on the Live Registers of Employment
Exchanges without a job for atleast 5 years.

The

assistance is given every month for three years
subject to eligibility conditions like age limit and
annual income. An amount of Rs.100/- for S.S.L.C.
failed; Rs.150/- for S.S.L.C. passed; Rs.200/- for
H.S.C. passed and Rs.300/- for graduates per month
is paid to beneficiaries. During the year 2011-12, a
sum of Rs.27.47 Crore was distributed to 1,19,624
beneficiaries.

69

TRAINING WING
Skill and knowledge are the driving forces for
the economic growth and social development of any
country. Countries with higher and better levels of
skills adjust more effectively to the challenges and
opportunities of the world of work. The target group
for skill development comprises all those in the
labour force, including those entering the labour
market

for

organized

the

first

sector

time,

and

those

those

employed

working

in

in
the

unorganized sector. As the proportion of working age
group of 15-59 years will be increasing steadily,
India

has

dividend.’

the

advantage

Harnessing

the

of

the

‘demographic

demographic

dividend

through appropriate skill development efforts would
provide an opportunity to achieve inclusion and
productivity within the country and also a reduction
in the global skill shortages.

Large scale skill

development is thus an imminent imperative. Major
challenges of skill development initiatives is also to
address the needs of huge population by providing
skills in order to make them employable and help
them secure decent work.

70

The Training Wing of this Department takes
the responsibility of producing workforce of our State
by implementing various skill training programmes
through a vast network of Government ITIs and
Private ITIs, through systematic training to ensure a
steady flow of skilled manpower in different trades to
the industries and to reduce the unemployment
problem among the educated youth.

Organisational Structure
The Directorate is located at Guindy Industrial
Estate. The Director of Employment and Training is
the Head of Department. He is assisted by two Joint
Directors in the State Headquarters and by Five
Regional Joint Directors, namely Chennai, Trichy,
Coimbatore, Madurai and Tirunelveli.
There are 62 Government ITIs functioning
across the State each with student strength from
100 to 1000. ITIs are headed by Principals in the
cadre of Training Officer/Assistant Director/Deputy
Director depending upon the trainee strength.

71

The
Major
Programmes

Skill

Development

Training

1. Craftsmen Training Scheme
2. Apprenticeship Training Scheme
3. Industrial Schools
4. Skill

Development

Initiative

-

Modular

Employable Skills
5. Centres of Excellence
6. Upgradation of Govt. ITI under PPP mode.
7. Skilling Initiatives of Tamil
Development Mission (TNSDM)

Nadu

Skill

the

most

Craftsmen Training Scheme
Craftsmen

Training

Scheme

is

important scheme in the field of Vocational Training,
in shaping the Craftsmen to meet the existing as well
as

future

manpower

requirement

network of ITIs in the State.

72

through

vast

The Main Objectives of this Scheme are
1. Impart training to the less privileged school
educated youth to acquire technical skill for
gainful employment.
2. Ensure steady flow of skilled workmen in
different sectors to meet the manpower
requirement of the Industry.
3. Establish close interaction with the Industries on
the issues relating to exchange of technical
knowledge and experience for the mutual
benefit of the Industrial Training Institute as
well as Industry.
4. To introduce new courses in emerging areas and
to create self- sustaining courses.
5. To provide sophisticated training opportunities
for women in the field of Electronic and
Information Technology for gainful employment.
Government Industrial Training Institutes
There are 62 Government ITIs with a total
seating capacity of 21,736 to impart Industrial
Training to both boys and girls in 39 Engineering
and
12

17

Non-Engineering

Government

ITIs

trades.

functioning

73

This

includes

exclusively

for

women, One ITI for Scheduled Castes and One for
Scheduled Tribes.
The training period ranges from 6 months to
3

years

depending

upon

the

trades.

Students

between the age of 14 and 40 are admitted in
Industrial Training Institutes. There is no upper age
limit for girls admitted in women ITIs/ women wings.
Admission is made during the month of August every
year on merit basis following the rules of reservation
in force.
Need for starting new ITIs
Every year only 23,000 youth get admitted in
the existing Government ITIs, out of 51,000 youth
applying for admission into Government ITIs. With a
strong demand for skilled workforce in Tamil Nadu,
there is a need to start more ITIs.

Therefore, the

Government have decided to open new ITIs every
year in the Unserviced Areas in a phased manner.
This Government have decided to set up 10 new
ITIs. Starting of these ITIs under Public Private
Partnership is being explored.

74

Concessions Offered to Trainees
During the training period, monthly stipend is
given to the trainees to encourage their active
participation in the training programme.

General

Candidates (all communities with income ceiling) are
given

Rs.100/month,

Denotified

Community

Candidates are given Rs.140/- month, Scheduled
Caste

Candidates

are

given

Rs.150/-

month,

Scheduled Tribes Candidates and Burma/Srilanka
Repatriate Candidates are given Rs.175/- month.
To help the poor and downtrodden youth,
Government have issued orders to supply two sets of
Uniform and a pair of Shoes at free of cost to each
trainee.

Free training and free bus pass are also

offered in all Government ITIs.
Affiliated Private Industrial Training Institutes
To supplement the efforts of the State in
producing skilled manpower to the Industry, private
participation is encouraged. At present there are
627 Private affiliated ITIs in Tamil Nadu with a total
seating capacity of 60,320.

75

All India Trade Test
Trade Test is conducted for the trainees of
Government ITIs and the Private affiliated ITIs by
NCVT during July every year and Supplementary
Trade

Test

is

conducted

during

February.

The Valuation of answer papers is done by Central
Evaluation System in the 5 regions viz. Chennai,
Coimbatore, Trichy, Madurai and Tirunelveli. In July
2011, 31,831 trainees including the supplementary
candidates have appeared in the All India trade Test.

State and All India Skill Competition
To motivate the trainees, State skill competition
is conducted in 18 trades at the state level and the
best trainee in each trade is awarded Rs.25,000/and a merit certificate.
All India Skill Competition is conducted in
14 different trades every year with a view to foster
the spirit of healthy competition among the trainees
of Industrial Training Institutes of various States.
Successful trainee in each trade is given a cash

76

award of Rs.50,000/-

and a merit certificate by

Government of India.
Out of 47 All India Skill Competitions held so
far, Tamil Nadu alone has been declared the BEST
STATE 22 times.
These achievements bear testimony to the high
quality of training imparted in the Industrial Training
Institutes in Tamil Nadu and also to the efficiency of
the trainees.

Dr. Radhakrishnan Award
Dr.

Radhakrishnan

Award

is

given

to

the

Instructors who show exemplary performance in
training. Every year, 12 Best Teachers (Principal-2,
Training Officer-2, Assistant Training Officer-4 and
Junior Training Officer-4) of Government ITIs and
Private ITIs are given a cash award of Rs.10000/each in the form of Kisan Vikas Patra and a Merit
Certificate in order to motivate and encourage them.

77

Welfare
Scheme
Scheduled Tribes

for

Scheduled

Castes/

To assist the Scheduled Castes and Scheduled
Tribes to improve their Socio-Economic conditions for
employability, Industrial training is given in different
trades.

A Government Industrial Training Institute

with 3 trades and

96 seats is functioning

at

Chidambaram in Cuddalore district exclusively for
Scheduled Castes.
A Government Industrial Training Institute at
Sankarapuram in Villupuram District is functioning
exclusively

for

Scheduled

Tribes

under

‘Tribal

Sub-Plan’ with 4 trades and 104 seats.
Apart from this, 18% of the seats are reserved
for Scheduled Castes and 1% of the seats for
Scheduled Tribes in the admission in all other
Government Industrial Training Institutes.
Instructor Training
To keep pace with the rapid technological
development, Instructional staffs are deputed for
training to various institutions run by Government of

78

India like Central Training Institutes and Advanced
Training Institutes. This training equips them with
the latest technology and skill. Subjects such as
Teaching Techniques, use of Audio Visual Aids in
teaching, Classroom Management etc., are covered
in the training.
Wireman Helper Competency Examination
Candidates with 21 years of age and having a
minimum work experience of 5 years with an
electrical contractor or in a recognized establishment
are

eligible

to

appear

for

this

examination.

The Examination is conducted once in 3 years by the
department.

The last examination was held

in

December 2009. 4,586 candidates had appeared for
the “Wireman Helper Competency” Examinations and
Certificates

were

issued

to

2,521

successful

candidates by the Department.

Examination Cell
Every
appearing

year,
for

nearly

the

trade

79

75,000
test

trainees
/

are

examination

under Craftsmen Training Scheme, Apprenticeship
Training Scheme and

Industrial School Pattern.

The examination system has been computerised and
computerised Provisional Certificates to the passed
out trainees are issued.

Apprenticeship Training Scheme
To acquire industrial skills, the ITI passed
trainees from Industrial Training Institutes/Private
ITIs are sponsored as apprentices to Industrial
establishments for training for a period ranging from
6 months to 2 years. In Tamil Nadu, Apprenticeship
Training is given in 111 Trades in 1,868 Industrial
Establishments.

As of now 11,628 apprentices are

undergoing training. During Apprenticeship Training,
the apprentices are given stipend ranging from
Rs.1490/-

to

Rs.2220/-

per

month

by

the

establishments.
At the end of training, Trade Test at All India
level is conducted during the month of April and
October.

The

successful

80

candidates

are

issued

National

Apprenticeship

Certificate.

Every

year,

about 12,500 apprentices appear for the All India
Apprenticeship Trade Test.

Industrial Schools
Besides

Government

and

affiliated

Private

Industrial Training Institutes, there are 933 Private
Industrial

Schools

functioning

in

Tamil

Nadu.

At present, approximately 29,900 candidates are
undergoing training. Training is offered in 110 trades
mainly in the areas like catering, tailoring, Computer
Software,
Training

beautician,
period

is

Office

from

45

Automation,
days

to

3

etc.
years.

Candidates with 8th pass qualification are admitted
for training. Eleven Industrial Schools are offering
Technical

Teacher’s

Examination

is

Training

conducted

at

Certificate
State

Course.

Level

and

Certificates are issued to the successful candidates
by the State Government. 45 Industrial Schools are
receiving maintenance grant from the Government.

81

Skill
Development
Initiative
Employable Skill (SDI-MES)

-

Modular

With an objective of enabling more number of
youth to acquire skill in a short span, short term
training

modules

Government

ITIs

Development
Scheme.

have

been

under

Initiative

the


introduced
scheme

Modular

of

in
Skill

Employable

MES courses are minimum skill sets

required in each skill area which make the trainees
employable. This scheme is 100% funded by the
Central Government in the form of reimbursement of
training cost to the training providers. This scheme is
implemented with the help of 61 Government ITIs,
659

private

bodies

corporate bodies.

including

private

ITIs

and

Free training is given and courses

are offered to candidates having qualification 5th std.
pass and above.
In order to reduce the burden for the poor
students, the State Government bears this cost on
their behalf. For this Rs.8.00 Crore is allotted
annually by the State Government. In the year
2011-12,

through

Government

82

ITIs

35,599

candidates

were

trained

under

the

Modular

Employable Skill (MES).

Centers of Excellence
Government of India launched this Scheme in
2005-06. Under domestic funding, Five Government
ITIs were upgraded as Centers of Excellence with
Rs.1.60

Crore

each.

World

Bank

funded

this

scheme from the year 2006-2007 at an outlay of
Rs.3.50 Crore per centre. The expenditure is shared
between Central Government and State Government
in the ratio of 75:25. So far 17 Government ITIs
have been taken up for up-gradation into CoE and
training is offered in 10 sectors to produce World
class multi skilled workforce. So far Rs.49.49 Crore
have been received from Government, out of which
a sum of Rs.41.08 Crore have been spent.
Upgradation of Government ITIs under Public
Private Partnership mode
Government of India launched this scheme in
the

year

2007

to

improve

the

ITI-Industry

interaction and to motivate private participation in
skill development activities. 32 Government ITIs are

83

under up-gradation at a total cost of Rs.80.00 Crore
with an interest free loan of Rs.2.50 Crore, to each
ITI funded by Government of India to upgrade itself
in terms of Civil works, purchase of tools and
equipments

and

recruitment

of

instructors.

An Institute Management Committee headed by an
Industry Partner as Chairman and ITI Principal as
Member

Secretary

has

been

formed

for

each

ITI to draw up Institute Development Plan and to
execute it.
Tamil Nadu Skill Development Mission (TNSDM)
To enhance skilled workforce in the State,
quantitatively

and

qualitatively,

a

State

Skill

Development Mission has been formed to catalyze
the skill development activities in the State.

New

strategy will be developed to provide employment
opportunity to more number of unemployed youth in
the State.
Government

have

given

administrative

sanction for Rs.20.20 Crore for implementing various
Skill Development initiatives.

84

World Class Vocational Training Institute
A world class training institute under PPP to
train youth in Hi-technology areas like Aircraft
maintenance, manufacturing etc., will be set up.
CII is identifying a consultant for preparation of
Detailed Project report. Courses outside the purview
of DGCA will be conducted. There is good demand for
logistics, ground handling and air cargo services
which assist mainline services. Courses under the
purview

of

DGCA

like

Aircraft

Maintenance

Engineering (AME) and Pilot Training Institutes etc.
are too sophisticated & require stiff qualification
parameters & benefit few students at high cost.
Courses will be run under MES pattern which has
1200 modules of varying duration.
e-Content & Simulator Based Training
For improving the knowledge base of the ITI
students e-module & simulator based training will be
introduced in ITI training. 10 trades have been
identified in consultation with industry. Industries
and ITIs are engaged in developing curriculum and
modules.

85

Smart Card for Skilled Candidates
Smart Card will be issued to the Government
ITIs and Modular Employable skill pass out to instill a
sense of pride in skilled workforce. Technical Details
are being worked out with NIC.
Faculty Development Institute
A Faculty Developing Institute will be set up
to ensure continuous supply of quality instructors.
A Detailed Project Report is under preparation
by CII.
Soft Skill Training for College Students
Soft skill training programme in all Government
and Government aided Arts & Science Colleges will
be launched. 265 hour curriculum has been approved
by the Director of Collegiate Education. Modules are
being prepared by CII in consultation with National
Association

for

(NASSCOM).

Software

Services

Companies

It is planned to target final year

students of Government Arts and Science Colleges in
the first phase. Skills including communication skills,
presentation skills, etc. are covered. Information and
Communication

Technology

agreed to train 5,000 students.

86

(ICT)

Academy

has

IV. OVERSEAS MANPOWER CORPORATION
LIMITED

Introduction
Overseas
was

Manpower

incorporated

on

Corporation

30.11.1978

Limited

under

the

Companies Act, 1956 by the Government of Tamil
Nadu as State Public Sector Undertaking during
the
Thiru

tenure
M.G.

of

Hon’ble

former

Ramachandran

for

Chief
the

Minister

benefit

of

Tamilians who are seeking overseas employment and
in order to prevent them from the exploitation of the
unscrupulous recruitment agents. The Ministry of
Overseas

Indian

Affairs,

Government

of

India,

permitted the Overseas Manpower Corporation to
send thousand and above emigrants per year for
overseas

employment.

The

main

aim

of

the

Corporation is to recruit Indian job seekers in
General and Tamilian job seekers in particular to
overseas nations.

87

Financial status
During the financial year 2010-2011, the
Corporation earned a net profit of Rs.2,968/- after
tax. During the financial year 2011-2012, upto
31.03.2012, the Corporation earned Rs.1.05 lakh as
profit (unaudited).

Physical performance
As on 31.03.2011, 28,720 registrants are
in

the

Live

Register

since

its

inception

and

1,842 registrants have registered for the period from
01.04.2011

to

31.03.2012

seeking

overseas

employment. Moreover, the Corporation deployed
7,713 registrants up to 31.03.2011 from its inception
and 196 registrants from 01.04.2011 to 31.03.2012
to

various

countries.

Overseas

Manpower

Corporation implements the Social Security Scheme
for Non-Resident Indians in association with the New
India Assurance Company Limited.

88

V. DIRECTORATE OF MEDICAL AND RURAL
HEALTH SERVICES
(Employees’ State Insurance Scheme)
Employees’ State Insurance Scheme of India is
an integrated Social Security Scheme. The Scheme
is administered all over India by a duly constituted
corporate

body

called

Insurance

Corporation

the
as

Employees’

provided

under

State
the

Employees’ State Insurance Act, 1948. The Scheme
has been implemented in this State in accordance
with

the

provisions

of

the

Employees’

State

Insurance Act, 1948. Towards this objective, the
scheme of Employees’ State Insurance provides full
Primary, Secondary and tertiary medical facilities to
all insured persons and their dependants, as well as
cash benefits to compensate for any loss of wages or
earning

capacity

in

times

of

physical

distress.

It provides protection to the workers in the organised
sector and their dependants in events such as
sickness, maternity, death and disablement due to
an employment injury or occupational disease as
detailed below:-

89

Medical Benefit
Medical facilities for self and dependants are
admissible from day one of entering into insurable
employment.

Primary,

Secondary

and

tertiary

medical services are provided through a network of
Employees’

State

Insurance

Dispensaries

and

Employees’ State Insurance Hospitals and Private
tie-up Super Specialty Hospitals.

Sickness Benefit
Sickness Benefit is payable to an Insured
Person in cash in the event of sickness resulting in
absence

from

work

and

duly

certified

by

an

authorised Insurance Medical Officer.

Maternity Benefit
Maternity Benefit is payable to Insured Women
for a maximum of 84 days related to maternity and
for sickness related to maternity, further period of
30 days.

90

Disablement Benefit (By Cash)
Disablement Benefit is payable to Insured
Employees suffering from physical disablement due
to employment injury or occupational disease. In
addition,

the

Insured

Person

is

eligible

for

compensation under workmen’s Compensation Act.

Dependant's Benefit (By Cash)
Dependant's Benefit is payable to dependant
of a deceased Insured Person where death occurs
due to Employment injury or occupational disease.

Extended Sickness Benefit (By Cash)
Extended

Sickness

Benefit

is

payable

to

Insured Persons for the period of certified sickness in
case of specified 34 long-term diseases that need
prolonged treatment and absence from work on
Medical advice.

91

Enhanced Sickness Benefit (By Cash)
Enhanced

Sickness

Benefit

is

payable

to

Insured Persons in the productive age group for
undergoing Sterilization operation viz. Vasectomy /
Tubectomy.

Temporary Disablement Benefit (By Cash)
Temporary Disablement Benefit at 70% of
wages is payable till temporary disablement lasts
and is duly certified by authorised Insurance Medical
Officer.

Permanent Disablement Benefit (By Cash)
Permanent Disablement Benefit is payable for
life

time

of

the

individual

with

effect

from

01.04.2011.

Funeral Benefit (By Cash)
An amount of Rs.10,000/- is paid as funeral
Benefit on death of an Insured Person to the spouse
with effect from 01.04.2011.

92

Unemployment Allowance (By Cash)
ESI Corporation is providing unemployment
allowance
retrenched

to

the

from

Insured
the

Persons

companies

if

and

they
on

are
other

specified contingencies, provided Insured Persons
have put in 3 years of continuous service.

He is

eligible for 50% of his last month’s salary paid for a
period of maximum 1 year under Rajiv Gandhi
Shramik Kalyan Yojana unemployment allowance.
Free supply of physical aids such as Crutches,
Wheel Chairs,

Dentures,

under this scheme.

Spectacles are offered

Preventive Health Care Services

such as Immunization, Family Welfare Services,
HIV / AIDS Detection Treatment are also available.
Employees

of

covered

units

and

establishments drawing wages up to Rs.15,000/- per
month come under the purview of the Employees
State Insurance Act, 1948 for multi-dimensional
social security benefits with effect from 01.05.2010.
However, the employees affected with disabilities
such as Autism, Cerebral Palsy, Mental Retardation

93

and/or Multiple disorders, whose wages are upto
Rs.25,000/- per month will also be covered under
the Scheme.

The Employees’ State Insurance

Scheme is financed by contributions from employees
and employers, at a fixed percentage of a sum
equivalent

to

1.75%

and

4.75%

of

wages

respectively.
Expenditure on the medical facilities is initially
borne by the State Government.

The 7/8 of the

expenditure subject to a sum of Rs.1,200/- to a
ceiling

of

Rs.1,500/-

per

Insured

Person

is

reimbursed from the Employees State Insurance
Corporation.
In Tamil Nadu, medical facilities are provided
through
Insurance

a

network

of

Dispensaries,

183
5

Employees’

Mobile

State

Dispensaries,

2 Utilisation Dispensaries and 9 Employees State
Insurance Hospitals with 2363 beds.

94

Ayurvedha Units
The Ayurvedha Units in Employees’ State
Insurance

Hospital,

Ayanavaram

Chennai,

Coimbatore and Madurai have been started in Tamil
Nadu.

Yoga Units
The Yoga Units are functioning in all the
Employees’ State Insurance Hospitals under the
control of the Tamil Nadu Government.

Unani Unit
The Government have accorded sanction for
the establishment of Unani Unit in Employees’ State
Insurance Hospital, Ayanavaram, Chennai. It will be
started very soon.
Siddha Units
The
the

Siddha

Employees’

units
State

are

functioning

Insurance

in

all

hospitals.

The Government have accorded sanction for the

95

establishment of Siddha Units in 10 ESI Dispensaries
during this year.

Out of this, siddha units in

6 Employees’ State Insurance dispensaries have
been started and remaining 4 units will be started
very soon.
Homoeopathy Unit
A Homoeopathy Unit in Employees’ State
Insurance Hospital, Ayanavaram, Chennai has been
started.
Revolving Fund
The Revolving Fund is created to reimburse
the bills paid by the Insured Persons for the Medical
Treatment

in

Private

Hospitals

without

delay.

At present, the amount is reimbursed form the
Revolving Fund to the Insured Persons and their
family members for Speciality and Super Speciality
treatments undergone in private Hospitals.
During

the

year

2011-2012,

a

sum

of

Rs.8.72 crore has been sanctioned to 3,145 Insured
Persons.

96

Package Deal
An

Agreement

has

been

made

with

162 private Hospitals under Package Deal for 58
different types of procedures, for the convenience of
the Insured Persons and their families to take
Speciality

and

Super

Speciality

Treatment.

The medical expenses incurred by the Insured
Persons and their family members are reimbursed
directly

to

the

Hospitals

under

Package

Deal.

The Insured Persons and their family members are
admitted to the Hospitals on the recommendation of
the concerned Employees’ State Insurance Hospitals.
After treatment the Hospital Bills are reimbursed
directly

by

the

Employees

State

Insurance

Corporation under Package Deal.
During the year 2011-2012, a sum of Rs.10.00
crore has been sanctioned to 162 Private Hospitals.

97

Constitution
Committee

of

Hospital

Development

Hospital Development Committee has been
constituted

in

the

Employees’

State

Insurance

Hospitals for the maintenance of minor and major
repairs of the Employees’ State Insurance buildings
and also for the purchase and repair of medical
equipments in the Hospitals and Dispensaries.

1. Medical Superintendent

- Chairman

2. Deputy Medical Superintendent

- Convener

3. Employers’ Representatives

- 2 Nos.

4. Employees’ Representatives

- 2 Nos.

5. Staff Representative

- 1 No.

6. Representative of State
Labour Department

- 1 No.

7. Local Member(s) from
ESI Corporation/
Regional Board Members}

- Member

8. Manager, Branch Office,
ESI Corporation

- Member

9. Regional Administrative
Medical Officer (ESIS)

- Special Invitee.

98

COMPUTERISATION
During the year 2011-2012, all the Employees’
State Insurance Hospitals and Employees’ State
Insurance

Dispensaries

were

connected

through

broad band by LAN and WAN all over India to provide
quality treatment to the Labour population under
“Project

Panchdeep”.

Subsequent

to

the

implementation of IT Roll out, the Insured Persons
and

their

family

members

anywhere in India.

99

can take treatment

VI. EMPLOYEES’ PROVIDENT FUND
ORGANISATION
(GOVERNMENT OF INDIA)
(TAMIL NADU)
Introduction
The Government of India, with a view to
provide social security to the working class, enacted
the Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952, enabling an employee to get
certain benefits on retirement and for his dependents
in the case of his premature death.
At present the following three schemes under
the Act are
i)

Employees’ Provident Funds Scheme, 1952.

ii)

Employees’ Pension Scheme, 1995.

iii)

Employees’ Deposit Linked Insurance Scheme,
1976.

100

Set-Up of offices in Tamil Nadu
There are 4 Regional Offices headed

by

Regional Provident Fund Commissioner (Grade-I)
in the state of Tamil Nadu at Chennai, Tambaram,
Coimbatore & Madurai.
There are 7 Sub-Regional Offices presently
functioning in the State and are headed by Regional
Provident

Fund

Ambattur,

Vellore,

Commissioners
Puducherry,

(Grade-II)
Salem,

at

Trichy,

Tirunelveli and Nagercoil.

Rate of Contribution
The

member

will

contribute

at

the

rate

of 12% of his salary as Provident Fund Contribution.
The employer will also pay a matching contribution
@ 12% out of which a part of contribution @ 8.33%
will be diverted to Pension Fund. Only the employer
is required to contribute at the rate of 0.5% of the
total salary of the employees towards Employees’
Deposit Linked Insurance.

101

Incentive to Employers in the Private Sector for
Providing Regular Employment to the Persons
With Disabilities
In order to encourage employment of persons
with

disabilities

in

private

sector,

the

Central

Government have approved an incentive scheme to
employers
employment

in

the
to

private

the

sector

Differently

for

providing

Abled

persons.

The incentive to employers will be in the form of
payment by Government of the employer’s share of
EPF contribution for the first three years upto wage
ceiling of Rs.25,000/-.

102

Part – II Schemes for the year,
2012 – 2013

Sl.
No.

Description of the Scheme

Expenditure
(Rupees in
lakh)

Secretariat
1.

Purchase of 4 A/C (1.5 ton
each), 3 Steel Bureau 1 Fax
Machine, furniture and 5
Samsung Printers and 2 HP
Systems

5.00

Labour
2.

Construction of Integrated
Labour Complex at Madurai

90.00

Employment and Training
3.

4.

Strengthening of Directorate,
provision of Photo copier for
Training Wing

Strengthening of offices of
the 5 Regional Joint Director
of Training for Training Wing

103

3.00

21.30

5.

6.

7.

8.

9.

10.

Replacement of Vehicle for
Regional Joint Director of
Training, Coimbatore

5.25

Civil
and
Electrical
maintenance
works
at
Government ITIs

17.38

Purchase of New Digital
EPABX System at Directorate
of Employment and Training

4.00

Purchase of
Photocopier
Machines for 20 Employment
Offices
and
one
for
Directorate

12.70

Purchase of Fax machine for
5 Employment Offices

0.83

Purchase of furniture for
Unemployment
Assistance
Scheme

10.21

Inspectorate of Factories
11.

Purchase of 15 Photo copier
machines for the use of the
offices of the Deputy Chief
Inspector of Factories

104

7.50

12.

13.

14.

15.

Purchase of 14 FAX Machines
for the Chief Inspector of
Factories, Additional Chief
Inspector of Factories, Joint
Chief Inspector of Factories
and Deputy Chief Inspector
of Factories

2.25

Purchase of computers and
its
accessories
for
this
department

17.43

Purchase of
4 Multi Gas
Detectors to the Office of the
Deputy Chief Inspector of
Factories, Hosur, Dindigul,
Tirunelveli and Madurai

2.40

Purchase of 15 Hydraulic
Testing Pumps to the Office
of the Deputy Chief Inspector
of Factories

0.75

Total

200.00

S.T. CHELLAPANDIAN
MINISTER FOR LABOUR

105

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