Welfare and Working Conditions

VISHWESH KOUNDILYA PGEXP/004/2012-14

Q 1)What is meant by manufacturing process?

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Ans.1:- Manufacturing Process means any process for

I.

II. III. IV.

V.
VI.

Making , altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, or Pumping oil, water, sewerage or any other substance, or Generating, transforming or transmitting power; or Composing types for printing , printing by letters press, lithography, photogravure or other similar process or book binding or Constructing, reconstructing , repairing, refitting, finishing or breaking up ships or vessels or Preserving or storing any article in cold storage

Q2) What are the eligibility criteria for the calculation of annual leave with wages under the Factories Act
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The main provisions of the Act about the grant of annual leave with wages under Section 79 are:

A worker shall be allowed in every calendar year, annual leave with wages @ 1 day for every 20 days of work performed by him during the previous calendar year In case of child worker, annual leave with wages @ 1 day for every 15 days of work performed Leave can be accumulated upto 30 days in case of an adult or 40 days in case of a child The leave admissible will be exclusive of all holidays, occurring during, or at either end of the leave period Wages for leave allowed shall be paid before the leave begins In case of a worker who is discharged or dismissed from service, quits or dies while in service, he or his heir or nominees must be paid wages in lieu of annual leave. In such case, the annual leave is to be calculated at the same rate as above but irrespective of whether the worker has worked for 240 days or not.

Q3)What is the legal status of a firm engaged in the development of software solutions? Is it a factory?
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[Explanation II].- For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof ;]

Therefore, it is not a factory.

Q4) Indicate the implications of job contract from labour supply contract under the contract labour Act?
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The establishment in the first instance must ensure that they have got

a registration certificate from the competent authority as provided u/s 7 of the Contract Labour (R&A) Act, 1970 before proceeding to engage the contract labour. the contractor for obtaining license as provided u/s 12 of the Act.

The establishment must ensure that they issue certificate in Form V to

It must be ensured that the contractor who is employing more than 20

persons has a valid licence issued in his name by the competent authority as provided under section 12 of the Act. disbursed to his employees by the contractor himself or his nominee and principal employer has to depute his representative to be present and sign the payment register in token of having disbursed the salary in his presence by the contractor.

The payment of wages to the employees employed by the contractor is

Q4) Indicate the implications of job contract from labour supply contract under the contract labour Act?
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There should not be any direct supervision and control by the principal

employer in respect of employees employed by the contractor to fulfill the obligation of the contract. nature.

The work for which contract labour is engaged is not of perennial

Discipline of the employees of contractor in the discharge of duties must

be regulated by the contractor and not by the principal employer. contractor and not by the principal employer.

Leave to the employees of contractor must be sanctioned by the

That the agreement to be entered into with the contractor should be

drafted and executed on a non-judicial stamp paper.

Q4) Indicate the implications of job contract from labour supply contract under the contract labour Act?
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That the agreement must disclose the names, addresses of the

contractor and the principal employer. That the agreement must specify the rights and obligations of both the parties. That the agreement must disclose the place of work, time of working, rate of compensation and consequences of breach of contract and procedure for termination of the agreement by both the parties. That the agreement must also disclose the scope of work, deployment of manpower in number, period of validity, security deposit and terms of payment to the contractor. That the agreement should be witnessed by two witnesses.

Q5) What do you understand by outworker? How do you ensure enforcement of the provisions of the Factories Act in respect of outworkers?
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outworker-a person to whom any articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer. outworker- they are not covered under the provisions of the Factories Act .It may be noted that these are the work or processes related to or "for the purposes of the trade or business of the principal employer" and can be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer

Q6) What guidelines should the government follow while abolishing

contract labour system in any employment/establishment?
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Certain circumstances under which the registration of an establishment can be revoked. : The Registering Officer, after affording reasonable opportunity to the Principal Employer, the holder of the Certificate of Registration can revoke the registration of an establishment with the previous approval of the appropriate State of Central Govt. in case he is satisfied that :1.

The registration has been obtained by mis-representation or suppression of any material facts or. The registration has become useless or ineffective for any other reason as specified in the schedules will be advised by the local labour department.

2.

Q7) What is meant by outsourcing? What are its implications in the context of Contract Labour Act
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the term outsourcing has not been defined under Contract Labour Act. Outsourcing - When an employer engages somebody else to deliver a

specified result where employer is not involved with the man power engagement or supervision or control activity over such man power. If any activity which is outsourced to someone and carried outside the premises of the principal employer, such manpower engaged will not be termed as workman under Contractor Labour Act.
When the jobs and services are outsourced and are carried out in some other

premises not being premises under controlled and management of the principal employer, Contract Labour Act will not apply. For all other jobs and services outsourced which are carried out in the premises of the principal employer will be covered under the Contract Labour Act.

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THANKS