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Ministry of Labour &

Employment
The Ministry of Labour & Employment is one of
the oldest and important Ministries of the Government of India. The main responsibility of the
Ministry is to protect and safeguard the interests of workers in general and the poor deprived
and disadvantaged sections of the society, in
particular. Further it aims to creating a healthy
work environment for higher production and productivity and to develop and coordinate vocational skill training and employment.
At present, there are 44 labour related statutes
enacted by the Central Government dealing with
minimum wages, accidental and social security benefits, occupational safety and health,
conditions of employment, disciplinary action,
formation of trade unions, industrial relations,
etc. Government's attention is also focused on
promotion of welfare and providing social security to the labour force both in organized and
unorganized sectors, in tandem with the process of liberalization. These objectives are
sought to be achieved through implementation
of various labour laws, which regulate the terms
and conditions of service and employment of
workers. The State Governments are also empowered to enact legislations, as labour is a
subject in the concurrent list under the Constitution of India.
LIST OF CENTRAL ACTS
01. The Employees State Insurance Act, 1948
02. The Employees Provident Fund and Miscellaneous Provisions Act, 1952
03. The Dock Workers (Safety, Health and
Welfare) Act, 1986
04. The Mines Act, 1952
05. The Iron are Mines, Manganese are Mines
and Chrome are Mines Labour Welfare (Cess)
Act, 1976
06. The Iron are Mines, Manganese are Mines
and Chrome are Mines Labour Welfare Fund
Act, 1976
07. The Mica Mines Labour Welfare Fund Act,
1946
08. The Beedi Workers Welfare Cess Act, 1976
09. The Limestone and Dolomite Mines Labour
Welfare Fund Act, 1972
10. The Cine Workers Welfare (Cess) Act, 1981
11. The Beedi Workers Welfare Fund Act, 1976
12. The Cine Workers Welfare Fund Act, 1981
13. The Child Labour (Prohibition and Heoulatlon)
Act, 1986
14. The Building and Other Constructions Workers' ( Regulation of Employment and Conditions
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of Service) Act, 1996
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15. The Contract Labour (Bequlation and Aboli1
tion) Act, 1970
16. The Equal Remuneration Act, 1976
17. The I ndustrial Disputes Act, 1947
18. The Industrial Employment (Standinq Orders) Act, 1946
19. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)
Act, 1979
20. The Labour Laws (Exemption from Furnishing Retu rns and Maintaining Registers by Certain
Establishments) Act, 1988 .:
21. The Maternity Benefit Act, 1961
22. The Minimum Wages Act, 1948
23. The Payment of Bonus Act, 1965
24. The Payment of Gratuity Act, 1972
25. The Payment of Wages Act, 1936
26. The Cine Workers and Cinema Theatre
Workers (Regulation of Employment) Act, 1981
27. The Buildinq and Other Construction Workers Ces s Act, 1996
28. The Apprentices Act, 1961
29. The Factories Act, 1948
30 The Motor Transport Act, 1961
31. The Personal Injuries (Compensation Insurance) Act, 1963
32. The Personal Injuries (Emerqencv Provisions) Act, 1962
33. The Plantation Labour Act, 1951
34. The Sales Promotion Employees (Conditions of Se rvice) Act, 1976
35. The Trade Unions Act, 1926
36. The Weekly Holidays Act, 1942
37. The Working Journalists and Other Newspapers Em ployees (Conditions of Service) and
Miscellaneous Provisions Act, 1955
38. The Children's (Pledqinq of Labour) Act, 1938
39. The Workmen's Compensation Act, 1923
(now renamed as the Employees Compensation
Act, 1923)
40. The Employment Exchange (Compulsory
Notification of Vacancies) Act, 1959
41. The Bonded Labour System (Abolition) Act,
1976
42. The Beedi and Cigar Workers (Conditions
of Employment) Act, 1966
43. The Employees Liability Act, 1938
44. The Unorganized Workers Social Security
Act, 2008
As per the survey carried out by the National
Sample Survey Organization in the year 20091 0, the total employment, in both organized
and unorganized sectors in the country was of
the order of 46.5 crore comprising of around 2.8
crore in the organized sector and the balance
43.7 crore workers in the unorganized sector.
Out of 43.7 crore workers in the unorganized
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sector, there are 24.6 crore workers employed


in agricultural sector, about 4.4 crore in construction work and remaining in manufacturing
and service.
In order to ensure welfare of workers in the unorganized sector which, inter-alia, include weavers, handloom workers, fishermen and
fisherwomen, toddy tappers, leather workers,
plantation labour, beedi workers, the
Unorganised Workers' Social Security Act,
2008' has been enacted. As per the provisions
of the Act, a National Social Security Board has
been constituted for recommending formulation
of' social security schemes viz. life and disability cover, health and maternity benefits, old age
protection and any other benefit as may be determined by the Government for unorganized
workers.
Vision
Decent working conditions and improved quality of life of workers, ensuring India without child
labor in hazardous sectors and enhancing employability through employment services and
skill development on a sustainable basis.
Mission
Improving the working conditions and the quality of life of workers through laying down and
implementing policies / programmes / schemes
/ projects for providing social security and welfare measures, regulating conditions of work,
occupational health and safety of workers, eliminating child labour from hazardous occupations
and processes, strengthening enforcement of
labour laws and promoting skill development and
employment services.
FUNCTIONS OF SOCIAL SECURITY
DIVISION
List of subjects
1. Matters concerning framing of social security policy especially for the organized sector of
workers.
2. Administration of Employees State Insurance
Act, 1948.
3. Administration of the Employees Provident
Funds & Miscellaneous Provisions Act, 1952
and three schemes framed there under, namely:i. The Employees Provident Fund Scheme,
1952
ii. The Employees Pension scheme, 1995
iii. The Employees Deposit linked Insurance
Scheme, 1976.
4.

Workmens Compensation Act, 1923.

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5. Maternity Benefits Act, 1961.
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6. Payment of Gratuity, Act, 1972
7. Establishment matters relating to the Em- 2
ployees State Insurance Corporation Constitution of ESI Corporation, Standing Committee
and Medical Benefit Council of ESIC as also
Regional Board.
8. Administrative matters of ESI Corporation
including implementation of ESI Scheme in
New Geographical Areas, opening of Sub-Regional Offices of ESIC and up-gradation of Medical facilities.
9. Annual report, Budget and accounts, and
matters connected with auditing of accounts of
the ESIC and EPFO
10. Issues relating to International Social Security Association(ISSA) ; and other international Social Security organizations. Processing of ILO Conventions relating to Social Security.
11. All Parliamentary matters and MP/VIP References in relation to the above as also legislative matters/ amendment in respect of the aforesaid Acts.
12. Vigilance matters/ Disciplinary proceedings relating to officers of EPFO and ESIC.
13. Representations from employees of ESIC
and EPFO, and general public grievances on
ESIC/ EPFO/Social Security measures in India.
14. All matters relating to setting up of EPF
Appellate Tribunal Establishment matters and
appointment of Staff.
15. Constitution of the Central Board of Trustees and Regional Committees, EPFO.
16. All matters relating to :
i.
Pattern of investment of provident fund
money;
ii.
Declaration of rate of interest on the provident fund;
iii. Enhancement of the rate of provident fund
contributions;
iv. Budget of the EDLI Scheme and EPS;
v.
Payment of Central Government contribution and administrative charges for Family Pension Scheme, Deposit Linked Insurance under
the EPF Act as well as the Assam Tea Plantation Provident Fund Act.
vi. References relating to recovery of EPF/ESI
dues/Exemptions and Exclusions from the
EPF&MP Act and also the ESI Act.
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Online services:
Recent Initiatives
SHRAM SUVIDHA PORTAL
The Ministry of Labour & Employment has developed a unified Web Portal 'Shram Suvidha',
catering to four major organisations under its
aegis: Office of Chief Labour Commissioner
(Central); Directorate General of Mines Safety;
Employees' Provident Fund Organization; and
Employees' State Insurance Corporation.
The portal's four main features are:
1. Unique Labour Identification Number (LIN) allotted to Units facilitating online registration.
2. Filing of self-certified, simplified Single Online
Return by industry. Units will only file a single
consolidated Online Return, instead of separate Returns. Amendments to 10 Rules already
undertaken.
3. Transparent Labour Inspection Scheme via
computerized system as per risk-based criteria and uploading of Inspection Reports within
72 hours by Labour Inspectors.

CQ
Additionally:
An Online Transfer Claims Portal (OTCP) has
been launched to facilitate transfer of member
accounts after a job change.
Online registration of establishments with
EPFO 26,696 establishments registered online
as on 1.1.2015
Software launched to allow exempt establishments to file Statutory Returns online.
Establishments can remit statutory EPF dues
electronically from any of the 58 banks via which
payments are made; the 58 include all major
banks in India.
All payments (100%) to pensioners and 98% of
other payments to members are made electronically.

e= EASIER SOCIAL SECURITY (EPFO )


PORTABILITY THROUGH UNIVERSAL ACCOUNT NUMBER (UAN) FOR EMPLOYEES
PROVIDENT FUND
(i) Digitization of complete database of 4.24cr
EPF subscribers and allotment of UAN to each
member.
(ii) UAN is being seeded with Bank Account,
Aadhar Card and other KYC (Know Your Customer) details to promote financial inclusion.
(iii) Employees' EPF accounts to be updated
monthly and members informed via SMS.
(iv) Direct access to EPF accounts; will enable
members to access and consolidate previous
accounts.Online pensioners can view their account and disbursement details online

e = EFFICIENT HEALTH AND INSURANCE


(ESIC )
As a social security organization under the Ministry of Labour & Employment, the Employees'
State Insurance Corporation provides comprehensive medical care and cash benefits in contingencies such as Sickness, Maternity Leave,
Disablement, death due to on-duty injury and
loss of jobs of beneficiaries from the organized
sector working class falling in the lower wage
bracket.
Project 'Panchdeep': To digitize internal and
external processes and ensure efficiency in
operations, especially services to Employers
and Insured Persons, ESIC has launched its IT
Project 'Panchdeep'.
Project 'Panchdeep': To digitize internal and
external processes and ensure efficiency in
operations, especially services to Employers
and Insured Persons, ESIC has launched its IT
Project 'Panchdeep'.
Pehchan Card: On registration, the Insured
Person's (IP) photograph is clicked and fingerprints of the IP and family members are
scanned. Two sets of Pehchan Card (one for
the IP, another for family members) are provided
for fast and convenient delivery of services.
Employer Portal under 'Panchdeep': The Employer Portal permits all transactions online
without visiting any ESIC Office, saving time and
preventing the drudgery of routine paperwork.
Employer-Employee Registrations are done
online. The portal enables employers to file
monthly contributions, generate Temporary
Identity Cards and create monthly contribution
challans online.
IP Portal under 'Panchdeep': Through the IP
Portal, Insured Persons can check contributions
paid/payable by employers, family details, entitlement to various benefits and status of claims.
e-Biz Platform: Under the Ministry of Labour &
Employment, ESIC is the first entity to integrate its services (Registration of Employers via

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TRANSPARENT CENTRAL LABOUR INSPECTION SCHEME FOR RANDOM INSPECTION


(a) Computerized list of inspections to be generated randomly as per risk-based objective
criteria.
(b) Serious matters to be covered under mandatory inspection list.
(c) Complaints-based inspections to be determined centrally after examination of data and
evidence.
(d) Mandatory uploading of Inspection Reports
within 72 hours.
(e) Since the Labour Inspection Scheme's
launch, 21,552 inspections generated as on 01
January 2015; of these, 18,149 are already uploaded.
(f) Ten States have indicated interest in joining
'Shram Suvidha'.

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e-Biz portal of the Department of Industrial


Policy and Promotion or DIPP) to promote ease
of business and curb transaction costs.
e = EXPERTISE IN TRAINING (DGET)
National Council for Vocational Training-Management Information System Portal
The Ministry of Labour and Employment has
developed NCVT-MIS portal to streamline the
functioning of ITIs, Apprenticeship Scheme and
assessment/certification of all NCVT training
courses.
All certificates (current academic year onwards)
will be issued online as e-certificates.
The MIS portal will act as a single-window, selfservice platform delivering services to current
and prospective trainees, employers/establishments, ITIs, State Directorates and DGET.
ITI data from 10 states has already been uploaded. Hall tickets and mark sheets for the
first semester of the current academic year will
be generated via the portal.
Skill Development Initiative Portal
DGET's Skill Development Initiative (SDI) Portal (https://www.sdi.gov.in) has been upgraded
to make it more user-friendly, improve control
and ensure timely execution of activities. Biometric attendance of trainee and placement
tracking and new features
National Career Service Initiatives in
progress
National Career Service (NCS) is being implemented as a Mission Mode Project by the Ministry to transform the National Employment
Service and provide various job-related services
such online registration of job seekers and job
vacancies as career counselling, vocational
guidance, information on skills development
courses, internships, apprenticeship, etc.
The NCS will be supported by a national portal
with Call Centre/Helpdesk and a network of
delivery channels. The NCS portal is slated to
be launched by 31 March 2015.
e = EXTRA REACH FOR UNORGANISED
WORKERS (DGLW)
1. Initiatives in Progress: Unorganised Workers Identity Card
(i) Identification and registration of unorganized
workers by State Governments as per Unorganized Workers Social Security Act, 2008 leading to creation of unorganized workers database.
(ii) Portable Smart Card to unorganized workers linked to Aadhar and bank account numbers to be issued by States in 2015-16.
(iii) Convergence of Social Security Schemes
for unorganized workers on a single platform.
(iv) Single point of contact for unorganized workCAREER QUEST / 09811299811, 09990840999

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ers Social Security Schemes.
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(v) Holistic monitoring of schemes to assess
access to and quality of services for unorga- 4
nized workers.
LABOUR BUREAU : For collation,collection and
publication of labour statistics and evaluation
of various labour enactments, besides being the
source of important economic indicators.
DGET DIRECTORATE GENERAL OF EMPLOYMENT & TRAINING : The apex organization for development and coordination of
programmes relating to Vocational Training and
Employment Services at the National level.
CLC(C) CHIEF LABOUR COMMISSIONER
(CENTRAL) : Also known as Central Industrial
Relations Machinery, CLC maintains harmonious industrial relations, mainly in the Central
Government domain.
DGFASLI - DIRECTORATE GENERAL, FACTORY ADVICE SERVICE AND LABOUR INSTITUTES : An advisory body to assist the Ministry in formulating national policies on occupational safety and health in factories,docks and
other workplaces.
DGMS DIRECTORATE GENERAL OF MINES
SAFETY : The Regulatory Agency for safety in
mines and oil fields with the mission to improve
safety and health standards, practices and performance.
DGLW DIRECTOR GENERAL LABOUR
WELFARE (WELFARE COMMISSIONERS) :
Administers various labour laws for the welfare
of unorganized workers, and schemes relating
to Health, Education,Housing,etc.
ESIC EMPLOYEES' STATE INSURANCE
CORPORATION : A multidimensional social
security system tailored to provide socio-economic protection to workers and their
dependants in the organized sector.
EPFO EMPLOYEES' PROVIDENT FUND
ORGANISATION : The institution of contributory provident fund, pension scheme and insurance scheme for the organized sector
workforce.
CBWE CENTRAL BOARD FOR WORKERS
EDUCATION : Works on schemes for Workers'
Education, and aims at increasing awareness
of the workforce for effective participation in the
country's socio-economic development

STUDY KIT/ Industrial Relations & Labour Laws

Rashtriya Swasthya Bima Yojana'


(RSBY)
Active Smart Cards : 37,191,843 as on date:
30/04/14
What is RSBY?
Ministry of Labour and Employment, Government of India has launched a health insurance
scheme for BPL families which is called
Rashtriya Swasthya Bima Yojana (RSBY).
Who is eligible?
The beneficiary is any Below Poverty Line (BPL)
family, whose information is included in the district BPL list prepared by the State government.
The eligible family needs to come to the enrollment station, and the identity of the household
head needs to be confirmed by the authorized
official.
What is the insurance coverage in RSBY?
Rashtriya Swasthya Bima Yojana provides cover
for hospitalization expenses upto Rs. 30,000/for a family of five on a floater basis. Transportation charges are also covered upto a maximum of Rs. 1,000/- with Rs. 100/- per visit.
What is the premium for RSBY?
The premium for RSBY is different in different
set of districts. State Governments select insurance companies through open tendering process and technically qualified lowest bid is selected.
Who pays the premium for RSBY?
Government pays the premium for RSBY. Central Government pays 75% of the total premium
(90% in case of Jammu & Kashmir and North
east States) while State Government pays the
remaining premium.
Will beneficiaries have to pay anything to get
the policy?
Beneficiaries need to pay Rs. 30 per family at
the time of enrollment.
What is the time period for the enrollment and
the policy period for the beneficiaries?
In case of new policy, the Scheme shall commence operation from the 1st of the succeeding month in which the smart card is issued.
Thus, for example, if the initial smart cards are
issued anytime during the month of April in a
particular district the scheme will commence
from 1st of May. The scheme will last for one
year till 30th of April of next year. This would be
the terminal date of the scheme in that particular district. However, in the same example, if
the card is issued in the month of May, June
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and July then the insurance will immediately CQ


start from the next day itself for the beneficia- PAGE
ries and policy will be over on 30th April of next 5
year. Thus, all cards issued in the district in
May will also have the Policy start date as 1st
of May (even if issued subsequent to the date)
and terminal date as 30th April of the following
year.
Recently, RSBY has been extended to building
and other construction workers registered under the Building and other Construction Workers (Regulation of Employment and Condition
of Service) Act, 1996, street vendors, beedi
workers, MGNREGA beneficiaries (who have
worked for more than 15 days during the preceding financial year) and domestic workers.
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EPFO
The Employees' Provident Fund
The Constitution of India under "Directive Principles of State Policy" provides that the State
shall within the limits of its economic capacity
make effective provision for securing the right
to work, to education and to public assistance
in cases of unemployment, old-age, sickness
& disablement and undeserved want.
The EPF & MP Act, 1952 was enacted by
Parliament and came into force with effect from
4th March,1952. A series of legislative interventions were made in this direction, including the
Employees' Provident Funds & Miscellaneous
Provisions Act, 1952. Presently, the following
three schemes are in operation under the Act:
1. Employees' Provident Fund Scheme, 1952
2. Employees' Deposit Linked Insurance
Scheme, 1976
3. Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme,
1971)
The Employees' Provident Fund
Organisation, India, is one of the largest provident fund institutions in the world in terms of
members and volume of financial transactions
that it has been carrying on.
EPFO : Structure
1 Central Provident Fund Commissioner
2 Financial Advisor & Chief Accounts Officer
3 Addl. Central Provident Fund Commissioner
(HR)
4 Addl. Central Provident Fund Commissioner
(Pension)
5 Addl. Central Provident Fund Commissioner
(Compliance)
6 Addl. Central Provident Fund Commissioner
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(Customer Services)
7 Addl. Central Provident Func Commissioner
(Information Services)
8 Chief Vigilance Officer
9 Chief Engineer
10 Regional Provident Fund Commissioner (HR)
11 Regional Provident Fund Commissioner
(Pension)
12 Regional Provident Fund Commissioner
(Compliance)
13 Regional Provident Fund Commissioner (Recoveries)
14 Regional Provident Fund Commissioner
(Customer Services)
15 Regional Provident Fund Commissioner
(Headquarters, PQ & Conference)
16 Regional Provident Fund Commissioners
(Administrative Services, Local & Regional)
17 Director (Information Services)
18 Deputy Directors (Information Services)
19 Assistant Directors (Information Services)
20 Assistant Provident Fund Commissioners for respective subject matter divisions
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ESIC

Employees State Insurance Corporation


The promulgation of Employees State Insurance
Act, 1948(ESI Act), by the Parliament was the
first major legislation on social Security for workers in independent India. It was a time when
the industry was still in a nascent stage and
the country was heavily dependent on an assortment of imported goods from the developed
or fast developing countries. The deployment of
manpower in manufacturing processes was limited to a few select industries such as jute, textile, chemicals etc. The legislation on creation
and development of a fool proof multi-dimensional
Social Security system, when the countrys
economy was in a very fledgling state was obviously a remarkable gesture towards the socio
economic amelioration of a workface though limited in number and geographic distribution. India, notwithstanding, thus, took the lead in providing organized social protection to the working class through statutory provisions.
The ESI Act 1948, encompasses certain
health related eventualities that the workers are
generally exposed to; such as sickness, maternity, temporary or permanent disablement,
Occupational disease or death due to employment injury, resulting in loss of wages or earning capacity-total or partial. Social security provision made in the Act to counterbalance or
negate the resulting physical or financial distress in such contingencies, are thus, aimed at
upholding human dignity in times of crises
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through protection from deprivation, destitution CQ


and social degradation while enabling the soci- PAGE
ety the retention and continuity of a socially 6
useful and productive manpower.
History
The scheme was inaugurated in Kanpur
on 24th February 1952 (ESIC Day) by then
Prime Minister Pandit Jawahar Lal Nehru. The
venue was the Brijender Swarup Park, Kanpur
and Panditji addressed a 70,000 strong gathering in Hindi in the presence of Pt.Gobind Ballabh
Pant, Chief Minister Uttar Pradesh; Babu
Jagjivan Ram, Union Labour Minister; Raj Kumari
Amrit Kaur, Union Health Minister;
Sh.Chandrabhan Gupt, Union Food Minister and
Dr.C.L.Katial, the first Director General of ESIC.
The scheme was simultaneously launched at
Delhi as well and the initial coverage for both
the centres was 1,20,000 employees. Our first
prime Minister was the first honorary insured
person of the Scheme and the declaration form
bearing his signature is a prized possession of
the Corporation.
It is important to mention here that it blossomed as the first social security scheme in
1944, when the Govt. of the day was still
British.The first document on social insurance
was Report on Health Insurance submitted to
the Tripartite Labour Conference, headed by Prof.
B.P.Adarkar, an eminent scholar and visionary.
The Report was acclaimed as a worthy document and forerunner of the social security
scheme in India and Prof. Adarkar was acknowledged as Chhota Beveridge by none other than
Sardar Vallabhbhai Patel. Sir, William Beveridge,
as all know, was one of the high priests of social insurance. The report was accepted and
Prof. Adarkar continued to be actively associated with it till 1946. On his disassociation he
strongly advocated management of the Scheme
by an expert from ILO. In 1948 Dr. C.L.Katial,
an eminent Indian doctor from London took over
as the 1st Director General of ESIC and he
steered the affairs of the fledgling Scheme till
1953.
Since the red letter day of 24th February
in the annals of social security in India , there
has been no looking back. A lighted lamp which
is the logo of ESIC truly symbolises the spirit
of the Scheme, lighting up lives of innumerable
families of workers by replacing despair with
hope and providing help in times of distress,
both physical and financial.
During the 54 years of its existence, ESIC
has grown from strength to strength and the
Corporation owes it, most of all, to the commitSTUDY KIT/ Industrial Relations & Labour Laws

ment, dedication and perseverance of persons


like Prof. Adarkar and Dr. Katial.
Employees' State Insurance Act, 1948
The promulgation of Employees State Insurance
Act, 1948 envisaged an integrated need based
social insurance scheme that would protect the
interest of workers in contingencies such as
sickness, maternity, temporary or permanent
physical disablement, death due to employment
injury resulting in loss of wages or earning capacity. the Act also guarantees reasonably good
medical care to workers and their immediate
dependants.
Following the promulgation of the ESI Act
the Central Govt. set up the ESI Corporation to
administer the Scheme. The Scheme, thereafter was first implemented at Kanpur and Delhi
on 24th February 1952. The Act further absolved
the employers of their obligations under the
Maternity Benefit Act, 1961 and Workmens
Compensation Act 1923. The benefit provided
to the employees under the Act are also in conformity with ILO conventions.
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CHILD LABOUR

The special schools/Rehabilitation Centres CQ


provide non-formal education, vocational train- PAGE
ing, supplementary nutrition, stipend etc. to 7
children withdrawn from employment.
The child workers identified in the survey
are put in the special schools and provided the
following facilities- Non-formal/formal education;
Skilled/craft training; Supplementary nutrition @
Rs. 5/- per child per day; Stipend @ Rs. 100/per child per month; and Health care facilities
through a doctor appointed for a group of 20
schools.
Labour Jurisdiction
Under the Constitution of India, Labour is a subject in the Concurrent List where both the Central & State Governments are competent to enact legislation subject to certain matters being
reserved for the Centre.
Labour Jurisdiction : Constitutional Status:
Union List
Entry No. 55 : Regulation of labour and safety
in mines and oil fields
Entry No. 61: Industrial disputes concerning
Union employees
Entry No.65: Union agencies and institutions
for "Vocational ...training..."

National Child Labour Project


To rehabilitate the children withdrawn from work,
the Government is implementing the National
Child Labour Project (NCLP) Scheme in 266
districts of the country. The NCLP Scheme
started in 1988. Under the Project, children withdrawn from work are enrolled in special schools,
where they are provided education, vocational
training, nutrition, stipend, health care, etc.
before mainstreaming them into formal education system. Under NCLP Scheme, expenditure of Rs. 92.71 crore was incurred against
Revised Estimate of Rs. 92.80 crore for 201011. During 2011-12 the expenditure of Rs. 70
crore has been incurred (upto November 21,
2011) against Budget Estimate of Rs. 373 crore.
A Central Monitoring Committee under the
Chairpersonship of Secretary, Ministry of Labour
& Employment with representation from State
Governments and concerned Ministries/Departments has been set up for supervision, monitoring and evaluation of the National Child Labour
Project. As per available information, 94657
child labour during 2010-11 and 51641 child
labour during 2011-12 (Upto June, 2011) have
been mainstreamed under NCLP Scheme.
This is a major scheme for the rehabilitation
of child labour. Under the scheme, Project
Societies at the district level are fully funded for
opening up of special school/Rehabilitation
Centres for the rehabilitation of child labour.

Concurrent List
Entry No. 22 : Trade Unions; industrisl and
labour disputes.
Entry No.23: Social Security and insurance,
employment and unemployment.
Entry No. 24: Welfare of abour including conditions of work, provident funds, employers 'invalidity and old age pension and maternity benefit.
------------------------------------------------------------------Kailash Satyarthi, original name Kailash
Sharma (born January 11, 1954, Vidisha,
Madhya Pradesh, India), Indian social reformer
who campaigned against child labour in India
and elsewhere and advocated the universal right
to education. In 2014 he was the corecipient of
the Nobel Peace Prize, along with teenage
Pakistani education advocate Malala Yousafzai,
for their struggle against the suppression of
children and young people and for the right of
all children to education.
Satyarthi established a magazine,
Sangharsh Jaari Rahega (The Struggle Will
Continue), which documented the lives of vulnerable people. In 1980 founded the nonprofit
Bachpan Bachao Andolan (BBA; Save the
Childhood Movement)
The BBA took a radically confrontational approach, with members descending on
guarded brick and carpet factories and liberating children who had been forced into servitude
by their parents.

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SOCIAL SECURITY
Introduction
Matters relating to Social Security are
listed in the Directive Principles of State Policy
and the subjects in the Concurrent List. The
following social security issues are mentioned
in the Concurrent List (List III in the Seventh
Schedule of the Constitution of India)
Item No. 23: Social Security and insurance,
employment and unemployment.
Item No. 24: Welfare of Labour including conditions of work, provident funds, employers liability, workmens compensation, invalidity and old
age pension and maternity benefits.
Part IV Directive Principles of State Policy
Article 41 Right to work, to education and to
public assistance in certain cases
The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to
education and to public assistance in cases of
unemployment, old age, sickness and disablement, and in other cases of undeserved want.
Article 42 Provision for just and humane conditions of work and maternity relief
The State shall make provision for securing just and humane conditions of work and for
maternity relief.
WHY DO WE NEED SOCIAL SECURITY
Social Security protects not just the subscriber but also his/her entire family by giving
benefit packages in financial security and health
care. Social Security schemes are designed to
guarantee at least long-term sustenance to families when the earning member retires, dies or
suffers a disability. Thus the main strength of
the Social Security system is that it acts as a
facilitator - it helps people to plan their own future through insurance and assistance. The success of Social Security schemes however requires the active support and involvement of employees and employers.
As a worker/employee, you are a source
of Social Security protection for yourself and
your family. As an employer you are responsible for providing adequate social security coverage to all your workers.
Background information on Social Security
India has always had a Joint Family system that took care of the social security needs
of all the members provided it had access/ownership of material assets like land. In keeping
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with its cultural traditions, family members and CQ


relatives have always discharged a sense of PAGE
shared responsibility towards one another. To 8
the extent that the family has resources to draw
upon, this is often the best relief for the special
needs and care required by the aged and those
in poor health.
However with increasing migration, urbanization and demographic changes there has
been a decrease in large family units. This is
where the formal system of social security gains
importance. However, information and awareness are the vital factors in widening the coverage of Social Security schemes.
Social Security Benefits in India are Needbased i.e. the component of social assistance
is more important in the publicly-managed
schemesIn the Indian context, Social Security is a
comprehensive approach designed to prevent
deprivation, assure the individual of a basic minimum income for himself and his dependents
and to protect the individual from any uncertainties. The State bears the primary responsibility for developing appropriate system for providing protection and assistance to its
workforce. Social Security is increasingly
viewed as an integral part of the development
process. It helps to create a more positive attitude to the challenge of globalization and the
consequent structural and technological
changes.
WORKFORCE IN INDIA
The dimensions and complexities of the
problem in India can be better appreciated by
taking into consideration the extent of the labour
force in the organized and unorganized sectors.
The latest NSSO survey of 1999-2000 has
brought out the vast dichotomy between these
two sectors into sharp focus. While as per the
1991 census, the total workforce was about 314
million and the organized sector accounted for
only 27 million out of this workforce, the NSSOs
survey of 1999-2000 has estimated that the
workforce may have increased to about 397 million out of which only 28 million were in the organized sector. Thus, it can be concluded from
these findings that there has been a growth of
only about one million in the organized sector
in comparison the growth of about 55 million in
the unorganized sector.
Organized and Unorganized Sectors
The organized sector includes primarily
those establishments which are covered by the
Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments,
STUDY KIT/ Industrial Relations & Labour Laws

the Industrial Employment Standing Orders Act,


1946 etc. This sector already has a structure
through which social security benefits are extended to workers covered under these legislations.
The unorganized sector on the other hand,
is characterized by the lack of labour law coverage, seasonal and temporary nature of occupations, high labour mobility, dispersed functioning of operations, casualization of labour,
lack of organizational support, low bargaining
power, etc. all of which make it vulnerable to
socio-economic hardships. The nature of work
in the unorganized sector varies between regions and also between the rural areas and the
urban areas, which may include the remote rural areas as well as sometimes the most inhospitable urban concentrations. In the rural
areas it comprises of landless agricultural
labourers, small and marginal farmers, share
croppers, persons engaged in animal husbandry, fishing, horticulture, bee-keeping, toddy
tapping, forest workers, rural artisans, etc. where
as in the urban areas, it comprises mainly of
manual labourers in construction, carpentry,
trade, transport, communication etc. and also
includes street vendors, hawkers, head load
workers, cobblers, tin smiths, garment makers,
etc.

Act), which provides 15 days wages for each CQ


year of service to employees who have worked PAGE
for five years or more in establishments having 9
a minimum of 10 workers.
Separate Provident fund legislation exists
for workers employed in Coal Mines and Tea
Plantations in the State of Assam and for seamen.
NEW INITIATIVES

The various Central Acts on Social Security are being examined in the light of the recommendations of the 2nd National Commission
on Labour. Relevant amendments are proposed
in the EPF and MP Act as also the ESI Act.
The consultation process is on with reference
to the amendment suggestions received in case
of the Maternity Benefit Act and the Workmens
Compensation Act.
Innovative measures are proposed in the running of the Social Security Schemes of EPFO
and ESIC. This includes flexible benefit
schemes tailored to the specific requirements
of different segments of the population.

SYNOPSIS OF SOCIAL SECURITY LAWS


The principal social security laws enacted
in India are the following:
(i) The Employees State Insurance Act, 1948
(ESI Act) which covers factories and establishments with 10 or more employees and provides
for comprehensive medical care to the employees and their families as well as cash benefits
during sickness and maternity, and monthly payments in case of death or disablement.
(ii) The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP
Act) which applies to specific scheduled factories and establishments employing 20 or more
employees and ensures terminal benefits to
provident fund, superannuation pension, and family pension in case of death during service.
Separate laws exist for similar benefits for the
workers in the coal mines and tea plantations.
(iii) The Workmens Compensation Act, 1923
(WC Act), which requires payment of compensation to the workman or his family in cases of
employment related injuries resulting in death
or disability.
(iv) The Maternity Benefit Act, 1961 (M.B. Act),
which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies.
(v) The Payment of Gratuity Act, 1972 (P.G.
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STUDY KIT/ Industrial Relations & Labour Laws

Industrial Disputes
1.What are Industrial Disputes?
Industrial Dispute means any dispute or differences between employers and employers or
between employers and workmen or between
workmen and workmen which is connected with
the employment or non-employment or the
terms of employment or with the conditions of
labour of any person.
2. What are the different categories of Industrial Disputes?
The Second Schedule of the I.D. Act deals with
matters within the jurisdiction of Labour Courts
which fall under the category of Rights Disputes.
Such disputes are as follows:
1. The propriety or legality of an order passed
by an employer under the standing orders;
2. The application and interpretation of standing orders which regulate conditions of employment.
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed;
4. Withdrawal of any customary concession or
privilege;
5. Illegality or otherwise of a strike or lock-out;
and
6. All matters other than those specified in the
Third Schedule.
The Third Schedule of the I.D. Act deals
with matters within the jurisdiction of Industrial
Tribunals which could be classified as Interest
Disputes. These are as follows:1. Wages, including the period and mode of
payment;
2. Compensatory and other allowances;
3.Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance
with standing orders;
7. Classification by grades;
8. Rules of discipline;
9.Rationalization;
10. Retrenchment of workmen and closure of
establishment; and
11. Any other matter that may be prescribed.
3. Who can raise an Industrial Dispute?
Any person who is a workman employed in an
industry can raise an industrial dispute. A workman includes any person (including an apprentice) employed in an industry to do manual,
unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward. It
excludes those employed in the Army, Navy,
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Air Force and in the police service, in manage- CQ


rial or administrative capacity. Industry means PAGE
any business, trade, undertaking, manufacture 10
or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.
4. How to raise an Industrial Dispute?
A workman can raise a dispute directly before
a Conciliation Officer in the case of discharge,
dismissal, retrenchment or any form of termination of service. In all other cases listed at 2
above, the dispute has to be raised by a Union
/ Management.
5. Who are Conciliation Officers and what
do they do?
The Organization of the Chief Labour
Commissioner(Central) acts as the primary
conciliatory agency in the Central Government
for industrial disputes. There are the Regional
Labour Commissioners (Central) and Assistant
Labour Commissioners (Central) who on behalf
of the Chief Labour Commissioner (Central) act
as Conciliatory Officers in different parts of the
country.
The Conciliation Officer make efforts to
resolve the dispute through settlement between
the workmen and the management. The duties
of Conciliation Officers have been laid down
under Section 12 of the Industrial Disputes Act.
6. What happens if conciliation fails?
In case of failure of conciliation (FOC) a report
is sent to Government (IR Desks in Ministry of
Labour). The Ministry of Labour after considering the FOC Report exercises the powers available to it under Section 10 of the Industrial Disputes Act and either refers the dispute for adjudication or refuses to do so. Details of functions of IR Desks and reasons for declining may
be seen above.
There are at present 17 Central Government Industrial Tribunals-cum-Labour Courts in
different parts of the country to whom industrial
disputes could be referred for adjudication.
These CGTIs-cum-Labour Courts are at New
Delhi, Mumbai (2 CGITs), Bangalore, Kolkata,
Asansol, Dhanbad (2 CGITs), Jabalpur,
Chandigarh, Kanpur, Jaipur, Lucknow, Nagpur,
Hyderabad, Chennai and Bhubaneshwar. Out
of these CGITs, 2 CGITs namely Mumbai-I and
Kolkata have been declared as National Industrial Tribunals.
7. What happens when the dispute is referred to Labour Court?
After the matter is referred to any of the CGITcum-Labour Court, the adjudication process
begins. At the end of the proceedings an Award
is given by the Presiding Officer.
STUDY KIT/ Industrial Relations & Labour Laws

The Ministry of Labour under Section 17


of the I.D. Act publishes the Award in the Official Gazette within a period of 30 days from the
date of receipt of the Award.

CQ
fied in any such notice.
PAGE
(iv) During the pendency of any conciliation proceedings before a Conciliation Officer and 7 days 11
after the conclusion of such proceedings.

8. How is the Award implemented?


An Award becomes enforceable on the expiry
of 30 days from the date of its publication in the
Official Gazette. The Regional Labour Commissioner is the implementing authority of the
Awards.

12. What compensation will a workman get


when laid off?
Whenever a workman (other than a badli workman or a casual workman) whose name is borne
on the muster rolls of an industrial establishment employing 50 or more workmen on an
average working day and who has completed
not less than one year of continuous service
under an employer laid off, whether continuously
or intermittently, he is to be paid by the employer for all days during which he is so laid off,
except for such weekly holidays as may intervene, compensation which shall be equal to fifty
per cent of the total of the basic wages and
dearness allowance that would have been payable to him had he not been so laid-off.

9. What are the provisions for General Prohibition of Strikes and Lockouts?
No workman who is employed in any industrial
establishment shall go on strike in breach of
contract and no employer of any such workman shall declare a lockout:
(a) During the pendency of conciliation proceedings before a Board and seven days after the
conclusion of such proceedings,
(b) During the pendency of such proceedings
before a Labour Court, Tribunal or National Tribunal and 2 months after the conclusion of such
proceedings.
(c) During the pendency of arbitration proceedings before an Arbitrator and 2 months after the
conclusion of such proceedings, where a notification has been issued.
(d) During any period during in which a settlement or Award is in operation in respect of any
of the matters covered by the settlement of
Award.
10. Does the workman have the Right to
go on strike with proper notice in Public
Utility Services?
No person employed in a Public Utility Service
can go on strike without giving to the employer
notice of strike;
(a) Within 6 weeks before striking.
(b) Within 14 days of giving such notice.
(c) Before the expiry of the date of strike specified in such notice.
(d) During the pendency of any conciliation proceedings before a Conciliation Officer and 7 days
after the conclusion of such proceedings.
11. Does the Employer have the right to lock
out any Public Utility Service?
No employer carrying on any Public Utility service can lockout any of his workman :
(i) Without giving to them notice of lockout provided within 6 weeks before locking out.
(ii) Within 14 days of giving such notice.
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13. What are the conditions precedent to


retrenchment of workmen?
No workmen employed in any industry who has
been in continuous service for not less than one
year under an employer can be retrenched by
that employer until :
(a) The workman has to be given one months
notice in writing indicating the reasons for retrenchment or the workman has to be paid in
lieu of such notice, wages for the period of the
notice.
(b) The workman has to be paid, at the time of
retrenchment, compensation which is equivalent to fifteen days average pay (for every completed year of continuous service) or any part
thereof in excess of six months; and
(c) Notice in the prescribed manner is to be
served on the appropriate Government (or such
authority as may be specified by the appropriate Government by notification in the Official
Gazette).
14. What compensation will the workman
get when an undertaking closes down?
Where an undertaking is closed down for any
reason whatsoever, every workman who has
been in continuous service for not less than one
year in that undertaking immediately before
such closure is entitled to notice and compensation in accordance with the provisions as if
the workman had been retrenched.
Provided that where the undertaking is
closed down on account of unavoidable circumstances beyond the control of the employer, the
compensation to be paid to the workman is not
to exceed his average pay for three months.

STUDY KIT/ Industrial Relations & Labour Laws

INDUSTRIAL DISPUTES ACT, 1947


The Industrial Disputes Act, 1947 came into
existence in April 1947. It was enacted to make
provisions for investigation and settlement of
industrial disputes and for providing certain safeguards to the workers. The Act contains 40
sections divided into 7 chapters. Chapter I
deals with the title, definitions, etc. Chapter
II contains the various authorities under the Act.
These authorities include Conciliation Officers,
Labour Courts and Tribunals. Chapter III contains the main scheme of the Act such as reference of disputes to Labour Courts and Industrial Tribunals. Chapter IV lays down the procedure, power and duties of the authorities constituted under the Act. Chapter V contains
provisions to prohibit strikes and lock-outs, declaration of strikes and lock-outs as illegal, and
provisions relating to lay-off and retrenchment
and closure. Chapter-VI contains provisions of
various penalties under the Act. ChapterVII
contains miscellaneous provisions.
TRADE UNIONS (AMENDMENT) ACT, 2001
The Trade Unions Act, 1926 provides for registration of trade unions of employers and workers and in certain respects, it defines the law
relating to registered trade unions. It confers
legal and corporate status on registered trade
unions. The Act is administered by the concerned State Governments. Certain provisions
of the Act were amended and given effect to
w.e.f. 9.1.2002.
2. Some of the salient features of the Trade
Unions (Amendment) Act, 2001 are:(i) No trade union of workmen shall be registered unless at least 10% or 100, whichever is
less, subject to a minimum of 7 workmen engaged or employed in the establishment or industry with which it is connected are the members of such trade union on the date of making
of application for registration.
(ii) A registered trade union of workmen shall at
all times continue to have not less than 10% or
100 of the workmen, whichever is less, subject
to a minimum of 7 persons engaged or employed in the establishment or industry with
which it is connected, as its members.
(iii) A provision for filing an appeal before the
Industrial Tribunal / Labour Court in case of nonregistration / restoration of registration has been
provided.

in the establishment or industry with which the CQ


PAGE
trade union is connected.
12
(v) Minimum rate of subscription by members
of the trade union is fixed at one rupee per annum for rural workers, three rupees per annum
for workers in other unorganized sectors and
12 rupees per annum in all other cases.
(vi) For the promotion of civil and political interest of its members unions are authorized to set
up separate political funds.
PLANTATION LABOUR ACT, 1951
The Plantation Labour Act, 1951 provides for
the welfare of plantation labour and regulates
the conditions of work in plantations.
The Act is administered by the State Governments and is applied to any land used as plantations which measures 5 hectares or more in
which 15 or more persons are working. The
State Governments are however, free to declare
any plantation land less than 5 hectares or less
than 15 persons to be covered by the Act. It
applies to all the plantation workers whose
monthly wages does not exceed Rs.750/- per
month.
In every Plantation covered under the Act medical facilities for the workers and their families
are to be made readily available as may be prescribed by the State Government.
The Act provides for setting up of canteens,
creches, recreational facilities suitable accommodation and educational facilities for the benefit of plantation workers in and around the work
places in the plantation estate.
The Act provides that no adult workers and
adolescent or child shall be employed for more
than 48 hours and 27 hours respectively a week,
and every worker is entitled for a day of rest in
every period of 7 days.
SCHEME FOR PARTICIPATION OF WORKERS IN MANAGEMENT
In December 1983, following a review of the
progress of participative schemes in industry, a
new scheme was prepared and notified.

(iv) All office bearers of a registered trade union,


except not more than one-third of the total number of office bearers or five, whichever is less,
shall be persons actually engaged or employed

This scheme is applicable to all central Public


Sector enterprises, except those specifically
exempted. It envisaged constitution of bipartite forums at shop and plant levels. In enterprises considered suitable, it was also to be
implemented at the Board level. The mode or
representation of workers representatives was
to be determined by consultation with the concerned unions, any parity in representation be-

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STUDY KIT/ Industrial Relations & Labour Laws

tween the management and unions continued


to be the norm.
The scheme brought within the ambit of the
councils a wider spread of work-related issues.
At the plant level, the council could discuss issues relating to personnel, Welfare, environment
and community development, plant operations
and functioning, and also take up financial matters relating to profit and loss statements, balance sheets, operating costs, plant financial
performance, labour and managerial costs, etc.

UNORGANISED WORKERS

DEFINITION
The first National Commission on Labour (196669) defined unorganised labour as those who
have not been able to organise themselves in
pursuit of common objectives on account of constraints like casual nature of employment, ignorance and illiteracy, small and scattered size
of establishments and position of power enjoyed
by employers because of the nature of industry
etc. Nearly 20 years later the National Commission on Rural Labour (NCRL: 1987-91)
visualised the same scenario and the same
contributory factors leading to the present status of unorganised rural labour in India.
EXTENT OF UNORGANISED LABOUR
The 1991 Census has classified workers in this
country into two distinct categories as main
workers and marginal workers. The main workers are those workers who work for the major
part of the year (296 days) and marginal workers are those who work for less that 6 months
(183 days). Out of a total work force of 314 million in India, about 286 million (i.e. about 91%)
were main workers and about 28 million (i.e.9%)
were marginal workers. The data of the Census
of India also shows that the bulk of the working
population is in the unorganised sector (i.e. 91%
of the total population) and this workforce is as
yet not actively unionised. The organised sector, which is generally extant around urban settlements, accounts for only 9% of the total work
force.
CATEGORIES OF UNORGANISED LABOUR
Unorganised workers can be categorised broadly
under the following four heads, namely 1. In terms of occupation : Small and marginal
farmers, landless agricultural labourers, share
croppers, fishermen, those engaged in animal
husbandry, in beedi rolling, beedi labelling and
beedi packing, building and other construction
workers, leather workers, weavers, artisans, salt
workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. may
come in this category.
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2. In terms of nature of employment
PAGE
3. Attached agricultural labourers, bonded
labourers, migrant workers, contract and casual 13
labourers come under this category.
4. In terms of specially distressed categories:
Toddy tappers, scavengers, carriers of head
loads, drivers of animal driven vehicles, loaders
and unloaders, belong to this category.
5. In terms of service categories: Midwives,
domestic workers, fishermen and women, barbers, vegetable and fruit vendors, newspaper
vendors etc. come under this category.
LEGISLATIVE PROTECTION
The Government have taken various initiatives
through enactment of legislations, creation of
welfare funds, spreading workers education and
through supporting non-governmental
organisations to bring this deprived class into
the mainstream of our work force. Some of the
important legislations which help unorganised
workers are as under:Minimum Wages Act, 1948.
Workmens Compensation Act, 1923.
Maternity Benefit Act,1961
The Employees State Insurance Act, 1948.
Bonded Labour System (Abolition) Act, 1976.
Contract Labour (Regulation & Abolition) Act,
1970.
Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act,
1979.
LABOUR : THRUST AREAS
Labour Policy and legislation;
Safety, health and welfare of labour;
Social security of labour;
Policy relating to special target groups such as
women and child labour;
Industrial relations and enforcement of labour
laws in the Central sphere;
Adjudication of industrial disputes through Central Government Industrial Tribunals cum Labour
Courts and National Industrial Tribunals.
Bonded Labour System (Abolition) Act 1976
BACK GROUND
The Government of India has consistently maintained a proactive approach to the issue of forced
or bonded labour in the country. It recognises
this evil system as a gross infringement of the
fundamental Human Rights of the affected citizens and is implacably committed to its total
eradication in the shortest possible time.
India has ratified ILO Convention No.29
(Forced Labour Convention 1930) on
30.11.1954. Following the ratification, the
bonded labour system was abolished by law
throughout the country w. e. f. 25th October 1975
by an Ordinance. Subsequently, Bonded Labour
System (Abolition) Act was passed by the ParSTUDY KIT/ Industrial Relations & Labour Laws

liament in 1976 but given effect to from 25.10.75,


the date when the Ordinance was promulgated.
The Act provides for the abolition of bonded
labour, bonded labour system and bonded debt.
Bonded labour stands abolished and would be
illegal wherever it exists- this is how the subject figures as an item in the old 20 Point
Programme for national reconstruction, which
goes to show the primacy and centrality attached to this subject at the national level.

International Labour
Organization (ILO)

INSTITUTIONAL ARRANGEMENT
Institutional mechanisms in the form of Vigilance
Committees at the district and sub-divisional
levels under the Chairmanship of District and
Sub-Divisional Magistrates have been provided
for, in the Statute. Anyone who wants to file a
complaint under the law about existence of
bonded/forced labour in any part of the territory
of India should file it before the Vigilance Committee under the Act. Executive Magistrates
have been empowered under the Act to conduct summary trial of offences, to release the
bonded labourers(s) and to issue release certificates. The Act also lays down stringent penal provisions against offending employers. The
penalties include imprisonment for a term which
may extend to 3 years and also with fine which
may extend to Rs.2,000/-.
In order to assist the State Governments
in their task of rehabilitation of released bonded
labourers, the Ministry of Labour has launched
a Centrally Sponsored Scheme since May, 78
for rehabilitation of freed bonded labourers. Under the scheme, the Government of India extends rehabilitation assistance @Rs. 10,000/per freed bonded labourer.

Is India a member of ILO?


Answer: India is one of the founder members of
International Labour Organization
which came into existence in 1919 and has been
a permanent member of the ILO
Governing Body since 1922.

SURVEY AND REHABILITATION


The issue of bonded labour has been discussed
in the Supreme Court/High Court in the form of
several public interest litigations. As per directions of the Supreme Court in WP No.3922/85,
a survey for identification of bonded labourers
was conducted during October-December 1996.
Under the Centrally sponsored Scheme, expenditure up to the end of 8th Five Year Plan
amounted to Rs.40.51 crore. During the 9th Five
Year Plan, expenditure of Rs.24.50 crores has
been incurred. During the 10th Five Year Plan
(2002-07) Central Grants amounting to Rs 97.28
crores have been provided to various State Governments/UTs under the said scheme.

What is ILO?
Answer: The International Labour Organization
(ILO) is a specialised UN agency,
tripartite in nature with governments, employers and workers as members. It was
established in 1919 by the Treaty of Versailles.

How many members are there in ILO?


Answer: At present the ILO has 183 Members.
What are the main functions of the ILO?
Answer: The principal function of the ILO is to
take care of the interests of the
workers by means of setting up the international
labour standards in the form of
Conventions and Recommendations.
Which are the main organs of the ILO?
Answer: The ILO is composed of three organs:
1. A general assembly (International Labour
Conference): Meets once every year in the
month of June.
2. An executive council (Governing Body): Meets
three times every year in the months of March,
June and November.
3. A permanent secretariat (International Labour
Office).
What are the main features of International
Labour Conference of the ILO?
Answer: The International Labour Conference
of the ILO is one of the largest
Conferences at the international level and is
characterised by a unique feature of
tripartism i.e., governments, workers and employers representatives participate independently. It is the supreme body of the ILO.

CENTRAL ACTION GROUP OF NATIONAL


HUMAN RIGHTS COMMISSION
The Supreme Court in its order dated 11.11.97,
in the above writ petition, has requested the
National Human Rights Commission to be involved in dealing with the issue of bonded labour.

What are the functions of the Governing


Body of ILO?
Answer: It is the executive body of the ILO, with
a tripartite composition. It elects the
Director General of the ILO, prepares the
organizations programmes and budget, sets
the agenda of the Conference, determines the
organizations standards and its technical cooperation policy, supervises the implementation
of related programmes and implements the decisions of the Conference.

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CQ
PAGE

14

Labour Reforms:
Fillip to Ease of Doing
Business
In a significant legislative move to make
industry-running attractive, the Centre is holding
consultative meetings on the draft Small
Factories (Regulation of Employment and
Conditions of Services) Bill, 2014 which will
regulate factories employing less than 40
workers. In addition, the Apprentices Act, 1961
was amended last year to make it more
responsive to industry and to youth.
FOR SEVERAL decades now, rigid labour laws
have been the major reason behind Indias slow
employment growth compared to the expansion
of the countrys labour force. Economic analysts
have stressed time and again that labour reforms
were needed not just for industrial growth, but
also to generate adequate employment
opportunities. There was, however, little progress
on the issue as the consensus needed among
the stakeholders remained elusive. Fortunately,
the new Government has realized that this
impasse could not longer be allowed to continue
indefinitely, if India were to continue its pace as
an emerging economic power. Initiative taken
by the Government in its first year of work have
shown that ease of doing business and
Shramev Jayate (glory of work) could go
together and combine into a mechanism for a
faster and more inclusive growth. Adopting a
multi-pronged strategy, the Centre has initiated
steps to rationalize the multiplicity of laws, while
encouraging the States to go ahead with their
labour reform initiatives. Success in these
attempts will come only if workers are convinced
that they are an essential part of the progress
process, and not just an expenditure burden.
Numerous reports and documents have pointed
out that a status quoist approach will not do if
industrial growth is to get a push, or jobs have
to be created for Indias rising young population.
The Mid-year Economic Analysis for 2014-15
has stated that reforms of labour laws and
reducing the costs of doing business will need
to be a joint endeavour of the States and the
Centre. The Government recognized the need
to work accordingly, duly accepting the
Concurrent List status of the subject. Among
the first reform actions of the Centre was,
therefore, facilitating Presidential Assent for
labour reforming in Rajasthan, thereby setting
an example for further reform initiatives by the
States; while consolidating and making
transparent a number of labour laws at the
Central level.
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The Economic Survey, 2014-15 (Vol. 1, Chapter CQ


1), referring to the severity of unemployment, PAGE
has stated that regardless of which data source 15
is used, it seems clear that employment growth
is lagging behind growth in labour force. For
example, according to the Census, between
2001 and 2011, labour force growth was 2.23
per cent. This is higher than most estimates of
employment growth in this decade of closer to
1.4 per cent. Creating more rapid employment
opportunities was clearly a major policy
challenge, it said.
At present, there are 44 labour-related statutes
enacted by the Central Government, and
another 100 by the State Governments.
Underscoring the problem the labour laws were
posing in their present shape, the Twelfth Five
Year Plan (2012-2017) (Vol. 3, Ch. 22) too had
stated the multiplicity of labour laws
administered both by the Central and State
Governments are not conducive for the congenial
development of the factory sector. It said 84
per cent of the labour sector being unorganized
was outside the purview of the labour laws, while
the remaining 16 per cent constituting the
organized sector was overburdened with
regulatory interference at all levels. Labour being
a Concurrent subject, there was a need to
simplify the labour laws both at the Central and
State levels, it pointed out.
Going specific, the Twelfth Plan said to
generate overall employment, at least labour
intensive manufacturing industries like textiles
and garments, leather and footwear, gems and
jewellery, food processing and so on, must be
permitted to adjust their labour forces, in
response to fluctuations in demand. The focus
should be on promoting labour market flexibility
without compromising fairness to labour.
W hile initiating its moves, the present
Government has committed itself to establish
the dignity of labour, transparency and
accountability in the enforcement of Labour Laws
and to promote workers welfare through good
governance initiatives. The Governments mantra
is Shramev Jayate that is, work is
celebration only when both partners the worker
and industry thoroughly benefit from it.
Undertaking the daunting task of making the
Indian labour legislation easily comprehensible,
the Labour Ministry has begun the process of
rationalizing the entire labour laws into five
Labour codes Code on Wages, Code on
Safety and W orking Conditions, Code on
Industrial Relations, Code on Social Security
and W elfare and a Code on Employment
Training and Miscellaneous. An inter-Ministrial
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Group has been formed to consider the


suggestions of the stakeholders and to draft the
Codes. As part of the spirit of tripartism, the
Labour Ministry has begun holding meetings
with the stakeholders on the proposed Codes.
The Labour and Employment Minister held three
tripartite consultation meetings the third on
6th May, 2015, on the crucial draft Labour Code
on Industrial Relations with representatives from
Central Trade Unions, Employers Associations,
Labour Departments of State Government and
Central Ministries and Departments.
The proposed Labour Code on Industrial
Relations seeks to rationalize and amalgamate
the relevant provisions of the Trade Unions Act,
1926, The Industrial Employment (Standing
Orders) Act, 1946 and The Industrial Disputes
Act, 1947. There has been longstanding demand
from industry for flexible labour laws but trade
unions consider that the changes would bring
job insecurity to workers, and it would be difficult
to form unions. To build a consensus, the
Minister invited suggestions from the participants
for incorporation in the Labour Code. The
Minister assured the meetings that the rights
of the workers will be protected at all costs,
and views of the participants will be considered
while finalizing the Labour Code on Industrial
Relations.
There have been two similar meetings on the
draft Labour Code on Wages, the second on
the 13th April, 2015, where the participants
discussed the Code which proposes to
amalgamate the relevant provisions of the
Minimum Wages Act 1948, The Payment of
Wages Act 1936, The Payment of Bonus Act
1965, and The Equal Remuneration Act 1976.
The Minister briefed the participants about the
proposed Labour Code and invited suggestions
from the participants who included
representatives of the Central Trade Unions,
Employers Associations and State
Governments.
In a significant legislative move to make industryrunning attractive, the Centre is holding
consultative meetings on the draft Small
Factories (Regulation of Employment and
Conditions of Services) Bill, 2014 which will
regulate factories employing less than 40
workers. In addition, the Apprentices Act, 1961
was amended last year to make it more
responsive to industry and to youth. Nonengineering graduates and diploma holders have
been included. Compliance is portal-based and
there are penalties in the form of fine only.

Government helped the Rajasthan Government CQ


get Presidential assent for the three labour law PAGE
amendment Bills relating to the Industrial 16
Disputes Act, 1947, the Contract Labour Act,
1970 and the Factories Act, 1947. Among the
major changes, the Industrial Disputes Act will
allow com panies employing up to 300
employees to lay off workers or close down
without taking the governments prior approval.
Earlier, those with up to 100 employees were
allowed to do so. This amendment is expected
to bring to the organized sector more investors
who were reluctant to do business as they had
to approach authorities over small issues if they
employed more than 100 workers. The small
industries will particularly benefit.
Among the other changes in the Rajasthan laws,
the amended Industrial Disputes Act now
provides that in case of retrenchment, a worker
has to raise an objection within three months.
There was no time limit earlier. Trade unions
can be formed only if they get 30 per cent of the
workers as members. The requirement at
present is 15 per cent. The Factories Act will
apply to factories with 40 workers, if without
electricity; and 20 workers, if with electricity.
The earlier requirement was just half. The
Contract Labour Act will apply to companies
employing more than 50 workers as against 20
earlier. Industries will be able to hire more
temporary workers without passing on to them
the benefits contract workers are entitled to.
The Rajasthan labour reforms have been hailed
by eminent economists, among others. Several
States are considering following the Rajasthan
initiative.
The Government launched the Make in
India campaign and combined it with a
detailed process and policy re-engineering
to make India a Global Manufacturing Hub
for creation of job opportunities for millions
of youth. Investment policies have been
fine-tuned to bring business to India. The
first year of the Government has generated
the much needed promise and hope, and
it is for administrative dynamisms to fulfill
them.

Signalling that the second-generation economic


reforms will be led by the States, the Central

Outside the influence of labour reform


controversies, the Government in its Budget for
2015-16 announced several initiatives which will
in due course lead to creation of millions of jobs.
The Budgets tax proposals have kept in view
the case of doing business which will lead to
faster creation of jobs. The Government launched
the Make in India campaign and combined it
with a detailed process and policy re-engineering
to make India a Global Manufacturing Hub for
creation of job opportunities for millions of youth.

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STUDY KIT/ Industrial Relations & Labour Laws

Investment policies have been fine-tuned to bring


business to India. The first year of the
Government has generated the much needed
promise and hope, and it is for administrative
dynamisms to fulfil them.
The Shramev Jayate Karyakaram, inaugurated
by the Prime Minister on 16th October 2014,
unveiled the Governments good governance
package with the belief that the ease in
compliance will create massive avenues of
employment for the youth of this country and in
turn promote transition to formality in a big
way.
Digital India, as part of the package, will present
a new regime of governance through effective
use of information technology. The Ministry of
Labour & Employment launched the unified Web
Portal Shram Suvidha Portal on 16th October,
2014. The portal is catering to four major
Organizations under the Ministry, namely Office
of Chief Labour Commissioner (Central),
Directorate General Mines Safety, Employees
Provident Fund Organization and Employees
State Insurance Corporation.
The four main features of this Portal are: Unique
Labour Identification Number (LIN) is allotted to
Units to facilitate online registration; Filing of
self-certified and simplified Single Online Return
by the establishments. Unites will only file a
single consolidated Return online instead of filing
separate Returns; Transparent Labour
inspection scheme through computerized
system based on risk based criteria and
uploading the inspection reports within 72 hours
by the Labour inspectors; Timely redressal of
grievances will be ensured with the help of the
portal. The Unique Labour Identification Number
(LIN) has been already allotted to more than
9.5 lakh existing establishments. The facility
for filing Common Returns under eight Labour
Acts has been launched recently on 24th April
2015. This service will reduce the transaction
costs of business and make it easy and
convenient to meet their obligations. The e-Biz
portal which integrates 14 regulatory
permissions at one source has been launched.
The Government recognized that employability
or rural youth is the key to unlocking Indias
demographic dividend, as rural population still
forms close to 70 per cent of Indias population.
The Deen Dayal Upadhyay Gramin Kaushal
Yojana was launched keeping in view only this.
The Budget 2015-16 has kept Rs.1500 crore
for this scheme. Disbursement will be through
a digital voucher directly into qualified students
bank accounts.
For the unorganized workers, who constitute
92 per cent of the work force, the Government
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has promised to start their identification and CQ


registration as per the Unorganized Workers PAGE
Social Security Act, 2008, leading to creation 17
of a database of unorganized workers. An
identity card to unorganized workers with
linkages with Aadhaar No. and Bank Account
No. will be issued for convergence of Social
Security Schemes for unorganized workers on
a single platform.
In the organized sector, Universal Account
Numbers have been allotted to more than 4.47
crore workers to pave way for complete
portability of Employees Provident Fund (EPF)
benefits. Here, 99 per cent payments to
members are being made electronically. SMS
alert for monthly contribution and accumulation
are being sent. It is proposed to include contract
and construction workers in UAN to bring them
under formal social security cover.
The Government has put the seal of perpetuity
to the grant of a minimum pension of Rs.1000
per month for Employees Pension Scheme
(EPS) subscribers. Notified in September 2014,
the higher pension has now secured the approval
of the Union Cabinet to continue in perpetuity.
Pension is now being credited to about 50 lakh
pensioners every month on the first working day
of the month. Also, a notification has been issued
for enhancement of wage ceiling under the EPF
Scheme from Rs.6500 to Rs.15000. For the first
time every, 15.54 crore member accounts
pertaining to 103 of 122 EPF offices have been
updated on 1st April 2015, that is, on the first
day of new financial year.
With more than 65 per cent of the
population being young in the working age
category, the Government is responding to
the vision of Skill India to harness the
potential of this unprecedented
demographic dividend. A separate Ministry
for Skill Development has been created.
Over the last one year, there have been
major initiatives to promote Demand
Responsive Vocational Training And Career
Services to enhance employment and
employability of the youth and other
vulnerable sections of the workforce.
With more than 65 per cent of the population
being young in the working age category, the
Government is responding to the vision of Skill
India to harness the potential of this
unprecedented demographic dividend. A
separate Ministry for Skill Development has
been created. Over the last one year, there have
been major initiatives to promote Demand
Responsive Vocational Training And Career
Services to enhance employment and
STUDY KIT/ Industrial Relations & Labour Laws

employability of the youth and other vulnerable


sections of the workforce. The Apprentice
Protsahan Yojana (APY) launched on 16th
October, 2014, with focus on MSME, aims to
supports one lakh apprentices in next two and
a half years by sharing 50 per cent of the stipend
burden with a vision to have more than 20 lakh
apprentices in next few years against the
present number of 2.9 lakh. Enhanced rates of
stipend indexed to minimum wage of semiskilled workers have been notified for trade
apprentices.
The Budget said the Government is establishing
a mechanism to be known as SETI (SelfEmployment and Talent Utilization). SETU will
be a techno-financial incubation and facilitation
programme to support all aspect of start-up
businesses, and other self-employment
activities, particularly in technology-driven
areas. The Budget kept Rs. 1000 crore for this
project in the NITI Aayog.
Employment Services are being modernized.
The National Career Service (NCS) has become
operational in March, 2015. A hundred Model
Career Centers are to be developed to provide
training in Last-Mile Employability skills. Another
milestone was achieved with NCVTMIS Portal
which went live from Decem ber 2014.
Recognition of Prior Learning (RPL) for
construction sector is another unique initiative
to bring the informally-trained constructions
workforce in the ambit of skilled labour. Training
of ITI instructors through distance learning
technology has been initiated to improve the
quality and delivery of training in ITIs.
The Government considers tripartism as the
hallmark of Labour Policy discourse, the
meetings convened by the Labour and
Employment Ministry have generated good
debate. Chairing a tripartite meeting with State
Governments, Central Trade Unions and
Employers Organizations, the Minister of State
for Labour and Employment (independent
Charge), Mr. Bandaru Dattatreya, on 13 th
January this year, said there was need for proactive involvement of all stakeholders in the
labour matters. Affirming faith in the consultative
process, he said the Ministry of Labour follows
the legacy of social dialogue.

mulled in the proposals. It is proposed to give CQ


the workers a choice to either join the EPF or PAGE
the National Pension Scheme (NPS). The Trade 18
Unions however, raised the issue of their longpending 10-point charter of demands given by
them and sought more consultations with the
Government. The unions plan to give their view
after a national convention at Delhi.
The wide-ranging worker-friendly amendments
proposed in the EPF Act include bringing down
the minimum number of employees required for
coverage under the Act from the existing 20 to
10, doing away with the Schedule Head for
coverage and bringing in a negative list instead,
special provisions for encouraging the
functioning of small-scale units, provisions for
setting up of multiple Appellate Authorities under
the Act and removing ambiguities in the
implementation of the Act. The amendments will
ensure greater clarity in the definitions under
the Act, especially with regard to wages which
qualify for deduction for the purposes of the Act,
introducing greater transparency and
accountability in the enforcement of the Act by
having an objective inspection scheme.
The tripartite discussions showed there was
general acceptance for the proposed
amendments. The NPS/EPF choice would
mean greater choice for the workers, they felt.
However, there were also views that NPS cannot
match the benefits offered by EPFO and
therefore, was not comparable. Views were
expressed felt that the amendments would help
in sharpening the competitiveness of Indian
Industry and would enable India to become a
manufacturing hub. There was a need to further
encourage the concessions granted to the smallscale industries, it was noted. Keeping the
dialogue alive, the Government responded to the
stakeholders saying their concerns will be kept
in view while giving final touches to the legislative
amendments.
-----------------------------------------------------------------TM

The employers unanimously agreed that the


vision of industrial development can be achieved
only when workers interest coincides and is
taken into account in a holistic manner. Tripartite
consultations were held for the second time on
the proposed EPF Act Amendments also on 31
March, 2015. The Minister informed the
stakeholders about the major changes being
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STUDY KIT/ Industrial Relations & Labour Laws

Labour and Employment

THE Ministry of Labour & Employment is one


of the oldest Ministries of the Government of
India. The main responsibility of the Ministry is
to protect and safeguard the interest of workers
in general and to poor deprived and
disadvantages sections of the society, in
particular. Further it aims to create a healthy
work environment for higher production and
productivity and to develop and coordinate
vocational skill training and employment
services. Governments attention is also
focused on promotion of welfare and providing
social security to the labour force both in
organized and unorganized sectors, in tandem
with the process of liberalization. These
objections are sought to be achieved through
implementation of various labour laws, which
regulate the terms and conditions of service and
employment of workers. The state governments
are also empowered to enact legislations, as
labour is a subject in the concurrent list under
the Constitution of India.
O.W.: http://www.labour.gov.in
LABOUR REFORMS
Labour Reforms essentially means taking steps
to increase production, productivity and
employment opportunities in the economy while
protecting overall interest of labour. Essentially
it means skill development, retraining,
redeployment, updating knowledge base of
workers-teaches, promotion of leadership
qualities etc. Labour Reforms also includes
labour laws reforms. Changes in the labour laws
are also done protecting the interests of workers.
Brief notes on different labour laws are given in
subsequent paragraphs.
The Minimum Wages Act, 1948
The Minimum Wages Act, 1948 provides for
fixation, review, revision and enforcement of
minimum wage, both by the Central Government
and the State Government, in respect of
scheduled employment in their respective
jurisdictions. There are 45 scheduled
employments in the Central sphere whereas the
number of these employments in the State
sphere is 1628.
The Minimum Wages Act, 1948 does not allow
discrimination between male and female
workers or different minimum wages for them.
All the provisions of the Act equally apply to
both male and female workers.
In order to protect the minimum wages against
inflation, the Central Government has made
provision of Variable Dearness Allowance (VDA)
linked to Consumer Price Index. As regards
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States/UT Administrations, 26 of them have CQ


made VDA as a component of minimum wages. PAGE
Both Central and State Governments revise the 19
minimum wages in respect of these scheduled
employments from time to time. Accordingly,
VDA is revised periodically twice a year during
April and October in the Central Sphere and the
rates were last revised w.e.f. 1st October 2013.
National Floor Level Minimum Wage
In orders to have a uniform wage structure and
to reduce the disparity in minimum wages
across the country, a concept of National Floor
Level Minimum Wage (NFLMW) was mooted.
The NFLMW has been revised from time to time
primarily taking into account the increase in the
Consumer Price Index Number for Industrial
Workers. The NFLMW was revised from time
to time. The Central Government, has recently
revised the NFLMW from Rs. 100/- to Rs.137/per day with effect from 1st July 2013. It however,
needs to be noted that the National Floor Level
Minimum Wage, is a non-statutory measure.
Payment of Wages Act, 1936
The payment of wages Act, 1936, which is a
labour friendly Legislation, ensures primarily
tim ely payment of wages and that no
unauthorized deductions are made from the
wages of the workers. In exercise of the powers
conferred by sub-section (6) of Section 1 of the
Act, the Central Government, on the basis of
figures of the Consumer Expenditure Survey
published by National Sample Survey
Organization, has enhanced the wage ceiling
from Rs.10,000/- to Rs.18,000/- per month w.e.f.
11th September 2012.
Payment of Wages (Nomination) Rules,
2009
The Central Government notified the Payment
of Wages (Nomination) Rules, 2009, on 13th
November, 2009 defining the procedure for
nomination and restricting the nomination by
workers to his family members.
Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965 provides for
payment of bonus to employees of factories and
other establishments employing 20 or more
persons.
The minimum bonus of 8.33 per cent is payable
by every industry and establishment under the
Section 10 of the Act. The maximum bonus
including productivity linked bonus that can be
paid in any accounting year shall not exceed
20 per cent of the salary/wages of an employee
under the sections 11 and 31A of the Act.

STUDY KIT/ Industrial Relations & Labour Laws

Consequent to the deliberations held in the 40th


and 41st section of the Indian Labour Conference
(ILC), the Payment of Bonus Act, 1965 was
amended to enhance the eligibility limit and
calculation ceiling and bring employees
employed through contractors on building
operations within the ambit of the Act.
Accordingly, the Payment of Bonus
(Amendment) Act, 2007 (45 of 2007) was notified
on 13 December 2007 enhancing the eligibility
limit from Rs. 3,500/- to Rs.10,000/- per month
and calculation ceiling from Rs. 2500/- to Rs.
3500/- per month by amendment of sections 2
(13) and 12 of the Act. Section 32(vi) of the
Payment of Bonus Act 1965 has also been
omitted so as to make the employees employed
through contractors on building operations to
be eligible to receive bonus. The amendment
came into effect from 1st April, 2006.
WAGE BOARDS
In the 1990s and 60s, when the organized labour
sector was at a nascent stage of its development
without adequate unionization or with trade
unions without adequate bargaining power,
Government in appreciation of the problems
which arise in the arena of wage fixation,
constituted various Wage Boards. The Wage
Boards are tripartite in character in which
representatives of workers, employers and
independent members participate and finalize
the recom mendations. The utility and
contribution of such boards in the present
context are not beyond question. Except for the
W age Boards for Journalists and NonJournalists, newspaper and news-agency
employees, which are statutory Wage Boards,
all other Wage Boards are non-statutory in
nature.
The Second National Commissioner on Labour
(NCL) has recommended that, there is no need
for any wage boards, statutory or otherwise, for
fixing wage rates for workers in any industry.
However, the Government decided not to accept
the recommendations regarding the statutory
wage boards i.e., Wage Boards for Working
Journalists and Non-Journalists Newspaper
Employees under the working Journalists and
Non-Journalists Newspaper Employees
(Conditions of Service) and Miscellaneous
Provisions Act, 1955.
CONTRACT LABOUR
The system of employing contract labour is
prevalent in most industries for different jobs
including skilled and semi-skilled. It is prevalent
in agricultural and allied operations and to some
extent, in the services sector. A contract labour
is a person who is hired, supervised, contracted
and remunerated by a contractor, who, in turn,
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is compensated by the user enterprises. The CQ


concern to improve the working and living PAGE
conditions of contract labour and the Supreme 20
Court of Indias observations in the case of
Standard Vacuum Refinery Company Vs. their
Workmen, resulted in the enactment of the
Contract Labour (Regulation and Abolition) Act,
1970.
The Act seeks to regulate the employment of
contract labour to certain establishments and
to provide for its abolition in certain
circumstances and for matters connected
therewith. The Act and the Contract Labour
(Regulation and Abolition) Central Rules, 1971
came into force on 10 February 1971. The Act
provides for the constitution of Central and State
Advisory Contract Labour Boards to advise the
respective Governments on matters arising out
of the administration of the Act. The Act contains
specific provisions to ensure payment of wages
and certain amenities to be provided by the
contractor to the contract labour.
The Central and State Governments are
empowered to prohibit employment of contract
labour in any activity in an establishment and
also to grant exemption to establishments/
contractors in the case of an emergency, from
the applicability of the provisions of the Act. The
Central Government has issued 84 notifications
prohibiting employment of contract labour in
difference categories of works in different fields.
CHILD LABOUR
Constitutional Provisions
The Government of India stands committed to
the elimination of child labour in the country.
The Constitution provides for protection of
children from involvement in economic activities
and avocations unsuited to their age. Directive
Principles of State Policy in the Constitution
strongly reiterate this commitment and is also
provided in the Fundamental Rights. Realizing
the multifaceted nature of this problem, the
Government had embarked on a holistic and
multi-pronged programme to eliminate child
labour from the country in a phased manner,
beginning with children working in hazardous
occupations and processes and progressively
covering those working in other occupations
also. On the one hand, it provides for legal action
for enforcement purposes and on the other, it
also focuses on general developm ent
programmes for the economic empowerment of
the families of children as well as project based
action in areas of high concentration of child
labour.
Policy
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