Personnel Law Revised

8/7/2019 Personnel Law Revised

1/191

1] Apprentices Act, 1961

PREAMBLE

An Act to provide for the regulation and control of training apprentices and for matters connected therewith.

1. SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION. - This Act may be called the Apprentices Act, 1961.

It extends to the whole of India.

2. DEFINITIONS. -

(aa) "apprentice" means a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship;

(aaa) "apprenticeship training" means a course of training in any industry or establishment undergone in pursuance of a

contract of apprenticeship and under prescribed terms and conditions which may be different for different categories ofapprentices;

(b) "Apprenticeship Adviser" means the Central Apprenticeship Adviser appointed under sub-section (1) of section 26 or theState Apprenticeship Adviser appointed under sub-section (2) of that section;

(c) "Apprenticeship Council" means the Central Apprenticeship Council or the State Apprenticeship Council established undersub-section (1) of section 24;

(d) "appropriate Government" means, - (1) in relation to - (a) the Central Apprenticeship Council, or

(aa) the Regional Boards, or

(aaa) the practical training of graduate or technician apprentices or of technician (vocational) apprentices, or;

(b) any establishment of any railway, major port, mine or oil field, or


2/191

(c) any establishment owned, controlled or managed by - (i) the Central Government or a department of the CentralGovernment,

(ii) a company in which not less than fifty-one per cent of the share capital is held by the Central Government or partly by thatGovernment and partly by one or more State Governments,

(iii) a corporation (including a co-operative society) established by or under a Central Act which is owned, controlled ormanaged by the Central Government, the Central Government;

(2) in relation to - (a) a State Apprenticeship Council, or

(b) any establishment other than an establishment specified in sub-clause (1) of this clause, the State Government;

(dd) "Board or State Council of Technical Education" means the Board or State Council of Technical Education established bythe State Government;

(e) "designated trade" means any trade or occupation or any subject field in engineering or technology or any vocationalcourse which the Central Government, after consultation with the Central Apprenticeship Council, may, by notification in the

Official Gazette, specify as a designated trade for the purposes of this Act;

(f) "employer" means any person who employs one or more other persons to do any work in an establishment forremuneration and includes any person entrusted with the supervision and control of employees in such establishment;

(g) "establishment" includes any place where any industry is carried on and where an establishment consists of differentdepartments or have branches, whether situated in the same place or at different places, all such departments or branchesshall be treated as part of that establishment;

(h) "establishment in private sector" means an establishment which is not an establishment in public sector;

(i) "establishment in public sector" means an establishment owned, controlled or managed by - (1) the Government or adepartment of the Government;

(2) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);

(3) a corporation (including a co-operative society) established by or under a Central, Provincial or State Act, which is owned,


3/191

controlled or managed by the Government;

(4) a local authority;

(j) "graduate or technician apprentice" means an apprentice who holds, or is undergoing training in order that he may hold adegree or diploma in engineering or technology or equivalent qualification granted by any institution recognised by theGovernment and undergoes apprenticeship training in any such subject field in engineering or technology as may beprescribed;

(k) "industry" means any industry or business in which any trade, occupation or subject field in engineering or technology or

any vocational course may be specified as a designated trade;

(l) "National Council" means the National Council for Training in Vocational Trades established by the resolution of theGovernment of India in the Ministry of Labour (Directorate General of Resettlement and Employment) No. TR/E.P-24/56,dated the 21st August, 1956 and re-named as the National Council for Vocational Training by the resolution of theGovernment of India in the Ministry of Labour (Directorate-General of Employment and Training) No. DGET/12/21/80-TC,dated the 30th September, 1981;

(m) "prescribed" means prescribed by rules made under this Act;

(mm) "Regional Board" means any Board of Apprenticeship Training registered under the Societies Registration Act, 1860 (21of 1860) at Bombay, Calcutta, Madras or Kanpur;

(n) "State" includes a Union territory;

(o) "State Council" means a State Council for Training in Vocational Trades established by the State Government;

(p) "State Government" in relation to a Union territory means the Administrator thereof;

(pp) "technician (vocational) apprentice" means an apprentice who holds or is undergoing training in order that he may hold acertificate in vocational course involving two years of study after the completion of the secondary stage of school educationrecognised by the All-India Council and undergoes apprenticeship training in any such subject field in any vocational course asmay be prescribed;

(q) "trade apprentice" means an apprentice who undergoes apprenticeship training in any such trade or occupation as may be


4/191

prescribed;

(r) "worker" means an person who is employed for wages in any kind of work and who gets his wages directly from theemployer but shall not include an apprentice referred to in clause (aa). (a) is not less than fourteen years of age, and (b)satisfies such standards of education and physical fitness as may be prescribed :

Provided that different standards may be prescribed in relation to apprenticeship training in different designated trades and fordifferent categories of apprentices.

3. RESERVATION OF TRAINING PLACES FOR THE SCHEDULED CASTES AND THE SCHEDULED TRIBES IN DESIGNATED

TRADES. - (1) In every designated trade, training places shall be reserved by the employer for the Scheduled Castes and theScheduled Tribes and where there is more than one designated trade in an establishment, such training places shall be reservedalso on the basis of the total number of apprentices in all the designated trades in such establishment.

(2) The number of training places to be reserved for the Scheduled Castes and the Scheduled Tribes under sub-section (1) shall besuch as may be prescribed, having regard to the population of the Scheduled Castes and the Scheduled Tribes in the Stateconcerned.

Explanation : In this section, the expressions "Scheduled Castes" and "Scheduled Tribes" shall have the meanings as in clauses (24)and (25) of article 366 of the Constitution.

4. CONTRACT OF APPRENTICESHIP. - (1) No person shall be engaged as an apprentice to undergo apprenticeship training in adesignated trade unless such person or, if he is a minor, his guardian has entered into a contract of apprenticeship with theemployer.

(2) The apprenticeship training shall be deemed to have commenced on the date on which the contract of apprenticeship has beenentered into under sub-section (1).

(3) Every contract of apprenticeship may contain such terms and conditions as may be agreed to by the parties to the contract :

Provided that no such term or condition shall be inconsistent with any provision of this Act or any rule made thereunder.

(4) Every contract of apprenticeship entered into under sub-section (1) shall be sent by the employer within such period as may beprescribed to the Apprenticeship Adviser for registration.


5/191


6/191


7/191


8/191


9/191

(b) to attend practical and instructional classes regularly;

(c) to carry out all lawful orders of his employer and superiors in the establishment; and

(d) to carry out his obligations under the contract of apprenticeship.

(2) Every graduate or technician apprentice, technician (vocational) apprentice undergoing apprenticeship training shall have thefollowing obligations, namely :- (a) to learn his subject field in engineering or technology or vocational course conscientiously anddiligently at his place of training;

(b) to attend the practical and instructional classes regularly;

(c) to carry out all lawful orders of his employer and superiors in the establishment;

(d) to carry out his obligations under the contract of apprenticeship which shall include the maintenance of such records of his workas may be prescribed.

13. PAYMENT TO APPRENTICES. - (1) The employer shall pay to every apprentice during the period of apprenticeship trainingsuch stipend at a rate not less than the prescribed minimum rate, or the rate which was being paid by the employer on 1st January,

1970 to the category of apprentices under which such apprentice falls, whichever is higher, as may be specified in the contract ofapprenticeship and the stipend so specified shall be paid at such intervals and subject to such conditions as may be prescribed.

(2) An apprentice shall not be paid by his employer on the basis of piece work nor shall he be required to take part in any outputbonus or other incentive scheme.

14. HEALTH, SAFETY AND WELFARE OF APPRENTICES. - Where any apprentices are undergoing training in a factory, theprovisions of Chapters III, IV and V of the Factories Act, 1948 (63 of 1948), shall apply in relation to the health, safety and welfare of

the apprentices as if they were workers within the meaning of that Act and when any apprentices are undergoing training in a mine,the provisions of Chapter V of the Mines Act, 1952 (35 of 1952), shall apply in relation to the health and safety of the apprentices as ifthey were persons employed in the mine.

15. HOURS OF WORK, OVERTIME, LEAVE AND HOLIDAYS. - (1) The weekly and daily hours of work of an apprentice while

undergoing practical training in a workshop shall be such as may be prescribed.


10/191


11/191

21. HOLDING OF TEST AND GRANT OF CERTIFICATE AND CONCLUSION OF TRAINING. - (1) Every trade apprentice who hascompleted the period of training shall appear for a test to be conducted by the National Council to determine his proficiency in thedesignated trade in which he has undergone his apprenticeship training.

(2) Every trade apprentice who passes the test referred to in sub-section (1) shall be granted a certificate of proficiency in the tradeby the National Council.

(3) The progress in apprenticeship training of every graduate or technician apprentice, technician (vocational) apprentice shall beassessed by the employer from time to time.

(4) Every graduate or technician apprentice or technician (vocational) apprentice, who completes his apprenticeship training to thesatisfaction of the concerned Regional Board, shall be granted a certificate of proficiency by that Board.

22. OFFER AND ACCEPTANCE OF EMPLOYMENT. - (1) It shall not be obligatory on the part of the employer to offer anyemployment to any apprentice who has completed the period of his apprenticeship training in his establishment, nor shall it beobligatory on the part of the apprentice to accept an employment under the employer.

(2) Notwithstanding anything in sub-section (1), where there is a condition in a contract of apprenticeship shall, after the successfulcompletion of the apprenticeship training, serve the employer, the employer shall, on such completion, be bound to offer suitable

employment to the apprentice, and the apprentice shall be bound to serve the employer in that capacity for such period and on suchremuneration as may be specified in the contract :

Provided that where such period or remuneration is not, in the opinion of the Apprenticeship Adviser, reasonable, he may revise suchperiod or remuneration so as to make it reasonable, and the period or remuneration so revised shall be deemed to be the period orremuneration agreed to between the apprentice and the employer.

23. AUTHORITIES. - (1) In addition to the Government, there shall be the following authorities under this Act, namely :- (a) The

National Council,

(b) The Central Apprenticeship Council,

(c) The State Council,

(d) The State Apprenticeship Council,


12/191

(e) The All India Council,

(f) The Regional Boards,

(g) The Boards or State Councils of Technical Education,

(h) The Central Apprenticeship Adviser, and (i) The State Apprenticeship Adviser.

(2) Every State Council shall be affiliated to the National Council and every State Apprenticeship Council shall be affiliated to theCentral Apprenticeship Council.

(2A) Every Board or State Council of Technical Education and every Regional Board shall be affiliated to the Central ApprenticeshipCouncil.

(3) Each of the authorities specified in sub-section (1) shall, in relation to apprenticeship training under this Act, perform suchfunctions as are assigned to it by or under this Act or by the Government :

Provided that a State Council shall also perform such functions as are assigned to it by the National Council and the StateApprenticeship Council and the Board or State Council of Technical Education shall also perform such functions as are assigned to it

by the Central Apprenticeship Council.

29. POWERS OF ENTRY, INSPECTION, ETC. - (1) Subject to any rules made in this behalf, the Central ApprenticeshipAdviser or such other person, not below the rank of an Assistant Apprenticeship Adviser, as may be authorised by the CentralApprenticeship Adviser in writing in this behalf may - (a) with such assistants, if any, as he thinks fit, enter, inspect andexamine any establishment or part thereof at any reasonable time;

(b) examine any apprentice employed therein or require the production of any register, record or other documents maintained

in pursuance of this Act and take on the spot or otherwise statements of any person which he may consider necessary forcarrying out the purposes of this Act;

(c) make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act and the rulesmade there under are being observed in the establishment;

(d) exercise such other powers as may be prescribed :


13/191

Provided that a State Apprenticeship Adviser or such other person, not below the rank of an Assistant Apprenticeship Adviser,as may be authorised by the State Apprenticeship Adviser in writing in this behalf may also exercise any of the powers

specified in clause (a), (b), (c) or (d) of this sub-section in relation to establishments for which the appropriate Government isthe State Government.

(2) Notwithstanding anything in sub-section (1), no person shall be compelled under this section to answer any question ormake any statement which may tend directly or indirectly to incriminate him.

30. OFFENCES AND PENALTIES. - (1) If any employer - (a) engages as an apprentice a person who is not qualified for being so

engaged, or

(b) fails to carry out the terms and conditions of a contract of apprenticeship, or

(c) contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under thoseprovisions, he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both.

(2) If any employer or any other person - (a) required to furnish any information or return - (i) refuses or neglects to furnish suchinformation or return, or

(ii) furnishes or causes to be furnished any information or return which is false and which he either knows or believes to be false ordoes not believe to be true, or

(iii) refuses to answer, or gives a false answer to any question necessary for obtaining any information required to be furnished byhim, or

(b) refuses or willfully neglects to afford the Central or the State Apprenticeship Adviser or such other person, not below the rank of

an Assistant Apprenticeship Adviser, as may be authorised by the Central or the State Apprenticeship Adviser in writing in this behalfany reasonable facility for making any entry, inspection, examination or inquiry authorised by or under this Act, or

(c) requires an apprentice to work overtime without the approval of the Apprenticeship Adviser, or

(d) employs an apprentice on any work which is not connected with his training, or

(e) makes payment to an apprentice on the basis of piecework, or


14/191

(f) requires an apprentice to take part in any output bonus or incentive scheme, he shall be punishable with imprisonment for a termwhich may extend to six months or with fine or with both.

2] Factories Act, 1948

PREAMBLE

An Act to consolidate and amend the law regulating labour in factories.

1. SHORT TITLE, EXTENT AND COMMENCEMENT. - (1) This Act may be called the Factories Act, 1948.

(2) It extends to the whole of India.

(3) It shall come into force on the 1st day of April, 1949.

2. INTERPRETATION. - In this Act, unless there is anything repugnant in the subject or context, - (a) "adult" means a person who

has completed his eighteenth year of age;

(b) "adolescent" means a person who has completed his fifteen year of age but has not completed his eighteenth year;

(c) "child" means a person who has not completed his fifteenth year of age;

(cb) "hazardous process" means any process or activity in relation to an industry specified to the First Schedule where, unlessspecial care is taken, raw materials used therein or the intermediate or finished products, bye-products, wastes or effluents thereofwould - (i) cause material impairment to the health of the persons engaged in or connected therewith, or

(d) "young person" means a person who is either a child or an adolescent;

(k) "manufacturing process" means any process for - (i) 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

(ii) pumping oil, water, sewage or any other substance; or;

(iii) generating, transforming or transmitting power; or


15/191


16/191


17/191


18/191


19/191


20/191


21/191

16. OVERCROWDING. - (1) No room in any factory shall be overcrowded to an extent injurious to the health of the workers

employed therein.

(2) Without prejudice to the generality of sub-section (1), there shall be in every workroom of a factory in existence on the date of thecommencement of this Act at least 9.9 cubic metres and of a factory built after the commencement of this Act at least 14.2 cubicmetres or space for every worker employed therein, and for the purposes of this sub-section no account shall be taken of any spacewhich is more than 4.2 metres above the level of the floor of the room.

(3) If the Chief Inspector by order in writing so requires, there shall be posted in each workroom of a factory a notice specifying themaximum number of workers who may, in compliance with the provisions of this section, be employed in the room.

(4) The Chief Inspector may by order in writing exempt, subject to such conditions, if any, as he may think fit to impose, anyworkroom from the provisions of this section, if he is satisfied that compliance therewith in respect of the room is unnecessary in theinterest of the health of the workers employed therein.

17. LIGHTING. (1) In every part of a factory where workers are working or passing there shall be provided and maintained sufficient

and suitable lighting, natural or artificial, or both.

(2) In every factory all glazed windows and skylights used for the lighting of the workroom shall be kept clean on both the inner and

outer surfaces and, so far as compliance with the provisions of any rules made, under sub-section (3) of section 13 will allow, freefrom obstruction.

(3) In every factory effective provision shall, so far as is practicable, be made for the prevention of - (a) glare, either directly from asource of light or by reflection from a smooth or polished surface;

(b) the formation of shadows to such an extent as to cause eye-strain or the risk of accident to any worker.

(4) The State Government may prescribe standards of sufficient and suitable lighting for factories or for any class or description offactories or for any manufacturing process.

18. DRINKING WATER. - (1) In every factory effective arrangements shall be made to provide and maintain at suitable pointsconveniently situated for all workers employed therein a sufficient supply of wholesome drinking water.


22/191


23/191

factories, including the obligation of workers in this regard, as it considers necessary in the interest of the health of the workersemployed therein.

20. SPITTOONS. - (1) In every factory there shall be provided a sufficient number of spittoons in convenient places and they shall bemaintained in a clean and hygienic condition.

(2) The State Government may make rules prescribing the type and the number of spittoons to be provided and their location in anyfactory and provide for such further matters relating to their maintenance in a clean and hygienic condition.

(3) No person shall spit within the premises of a factory except in the spittoons provided for the purpose and a notice containing thisprovision and the penalty for its violation shall be prominently displayed at suitable places in the premises.

(4) Whoever spits in contravention of sub-section (3) shall be punishable with fine not exceeding five rupees.

Safety Provisions

21. FENCING OF MACHINERY. - (1) In every factory the following, namely, - (i) every moving part of a prime mover and every

flywheel connected to a prime mover, whether the prime mover or flywheel is in the engine house or not;

(ii) the headrace and tailrace of every water-wheel and water turbine;

(iii) any part of a stock-bar which projects beyond the head stock of a lathe; and

(iv) unless they are in such position or of such construction as to be safe to every person employed in the factory as they would be ifthey were securely fenced, the following, namely - (a) every part of an electric generator, a motor or rotary converter;

(b) every part of transmission machinery; and

(c) every dangerous part of any other machinery, shall be securely fenced by safeguards of substantial construction which shall beconstantly maintained and kept in position while the parts of machinery they are fencing are in motion or in use :

Provided that for the purpose of determining whether any part of machinery is in such position or is of such construction as to be safeas aforesaid, account shall not be taken of any occasion when - (i) it is necessary to make an examination of any part of themachinery aforesaid while it is in motion or, as a result of such examination, to carry out lubrication or other adjusting operation while


24/191


25/191


26/191


27/191

(ii) properly maintained, and shall be thoroughly examined by a competent person at least once in every period of six months, and aregister shall be kept containing the prescribed particulars of every such examination;

(b) every hoistway and liftway shall be sufficiently protected by an enclosure fitted with gates, and the hoist or lift and every suchenclosure shall be so constructed as to prevent any person or thing from being trapped between any part of the hoist or lift and anyfixed structure or moving part;

(c) the maximum safe working load shall be plainly marked on every hoist or lift, and no load greater than such load shall be carriedthereon;

(d) the cage of every hoist or lift used for carrying persons shall be fitted with a gate on each side from which access is afforded to a

landing;

(e) every gate referred to in clause (b) or clause (a) shall be fitted with interlocking or other efficient device to secure that the gatecannot be opened except when the cage is at the landing and that the cage cannot be moved unless the gate is closed.

(2) The following additional requirements shall apply to hoists and lifts used for carrying persons and installed or reconstructed in afactory after the commencement of this Act, namely : (a) where the cage is supported by rope or chain, there shall be at least tworopes or chains separately connected with the cage and balance weight, and each rope or chain with its attachments shall be

capable of carrying the whole weight of the cage together with its maximum load;

(b) efficient devices shall be provided and maintained capable of supporting the cage together with its maximum load in the event ofbreakage of the ropes, chains or attachments;

(c) an efficient automatic device shall be provided and maintained to prevent the cage from over-running.

(3) The Chief Inspector may permit the continued use of a hoist or lift installed in a factory before the commencement of this Actwhich does not fully comply with the provisions of sub-section (1) upon such conditions for ensuring safety as he may think fit toimpose.

(4) The State Government may, if in respect of any class or description of hoist or lift, it is of opinion that it would be unreasonable toenforce any requirement of sub-sections. (1) and (2), by order direct that such requirement shall not apply to such class ordescription of hoist or lift.


28/191


29/191


30/191


31/191


32/191


33/191

or manager or both of the factory an order in writing specifying the measures which in his opinion should be taken and requiring thesame to be carried out before such date as is specified in the order.

40B. SAFETY OFFICERS. - (1) In every factory, - (i) wherein one thousand or more workers are ordinarily employed, or

(ii) wherein, in the opinion of the State Government, any manufacturing process or operation is carried on, which process oroperation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the persons employed in thefactory, the occupier shall, if so required by the State Government by notification in the Official Gazette, employ such number ofSafety Officers as may be specified in that notification.

(2) The duties, qualifications and conditions of service of Safety Officers shall be such as may be prescribed by the State

Government.

Welfare Provisions

42. WASHING FACILITIES. - (1) In every factory - (a) adequate and suitable facilities for washing shall be provided and maintainedfor the use of the workers therein;

(b) separate and adequately screened facilities shall be provided for the use of male and female workers;

(c) such facilities shall be conveniently accessible and shall be kept clean.

(2) The State Government may, in respect of any factory or class or description of factories or of any manufacturing process,prescribe standards of adequate and suitable facilities for washing.

43. FACILITIES FOR STORING AND DRYING CLOTHING. - The State Government may, in respect of any factory or class ordescription of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during working

hours and for the drying of wet clothing.

44. FACILITIES FOR SITTING. - (1) In every factory suitable arrangements for sitting shall be provided and maintained for allworkers obliged to work in a standing position, in order that they may take advantage of any opportunities for rest which may occur inthe course of their work.


34/191


35/191


36/191

49. WELFARE OFFICERS. - (1) In every factory wherein five hundred or more workers are ordinarily employed the occupier shall

employ in the factory such number of Welfare officers as may be prescribed.

(2) The State Government may prescribe the duties, qualifications and Conditions of service of officers employed under sub-section(1).

Working Hours

51. WEEKLY HOURS. - No adult workers shall be required or allowed to work in a factory for more than forty-eight hours in anyweek.

52. WEEKLY HOLIDAYS. - (1) No adult worker shall be required or allowed to work in a factory on the first day of the week(hereinafter referred to as the said day), unless - (a) he has or will have a holiday for a whole day on one of the three daysimmediately before or after the said day, and

(b) the manager of the factory has, before the said day or the substituted day under clause (a), whichever is earlier, - (i) delivered anotice at the office of the Inspector of his intention to require the worker to work on the said day and of the day which is to besubstituted, and

(ii) displayed a notice to that effect in the factory : Provided that no substitution shall be made which will result in any worker workingfor more than ten days consecutively without a holiday for a whole day.

(2) Notices given under sub-section (1) may be cancelled by a notice delivered at the office of the Inspector and a notice displayed inthe factory not later than the day before the said day or the holiday to be cancelled, whichever is earlier.

(3) Where, in accordance with the provisions of sub-section (1), any worker works on the said day and has had a holiday on one ofthe three days immediately before it, that said day shall, for the purpose of calculating his weekly hours of work, be included in thepreceding week.

53. COMPENSATORY HOLIDAYS. - (1) Where, as a result of the passing of an order or the making of a rule under the provisions ofthis Act exempting a factory or the workers therein from the provisions of section 52, a worker is deprived of any of the weeklyholidays for which provision is made in sub-section (1) of that section, he shall be allowed, within the month in which the holidayswere due to him or within the two months immediately following that month, compensatory holidays of equal number to the holidaysso lost.


37/191

(2) The State Government may prescribe the manner in which the holidays for which provision is made in sub-section (1) shall beallowed.

54. DAILY HOURS. - Subject to the provisions of section 51, no adult worker shall be required or allowed to work in a factory formore than nine hours in any day :

Provided that, subject to the previous approval of the Chief inspector, the daily maximum hours specified in this section may beexceeded in order to facilitate the change of shifts.

55. INTERVALS FOR REST. - (1) The periods of work of adult workers in a factory each day shall be so fixed that no period shallexceed five hours and that no worker shall work for more than five hours before he has had an interval for rest of at least half an

hour.

(2) The State Government or, subject to the control of the State Government, the Chief Inspector, may, by written order and for thereasons specified therein, exempt any factory from the provisions of sub-section (1) so however that the total number of hoursworked by a worker without an interval does not exceed six.

56. SPREADOVER. - The periods of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for restunder section 55, they shall not spreadover more than ten and a half hours in any day : Provided that the Chief Inspector may, forreasons to be specified in in writing, increase the spreadover up to twelve hours.

57. NIGHT SHIFTS. - Where a worker in a factory works on a shift which extends beyond midnight, - (a) for the purposes of sections52 and 53, a holiday for a whole day shall mean in his case a period of twenty-four consecutive hours beginning when his shift ends;

(b) the following day for him shall be deemed to be the period of twenty-four hours beginning when such shift ends, and the hours hehas worked after midnight shall be counted in the previous day.

58. PROHIBITION OF OVERLAPPING SHIFTS. - (1) Work shall not be carried on in any factory by means of a system of shifts so

arranged that more than one relay of workers is engaged, in work of the same kind at the same time.

(2) The State Government or subject to the control of the State Government, the Chief Inspector, may, by written order and for thereasons specified therein, exempt on such conditions as may be deemed expedient, any factory or class or description of factories orany department or section of a factory or any category or description of workers therein from the provisions of sub-section (1).


38/191


39/191

(b) the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section

60. RESTRICTION ON DOUBLE EMPLOYMENT. - No adult worker shall be required or allowed to work in any factory on any day

on which he has already been working in any other factory, save in such circumstances as may be prescribed.

62. REGISTER OF ADULT WORKERS. - (1) The manager of every factory shall maintain a register of adult workers, to be availableto the Inspector at all times during working hours, or when any work is being carried on in the factory, showing - (a) the name of eachadult worker in the factory;

(b) the nature of his work;

(c) the group, if any, in which he is included;

(d) where his group works on shifts, the relay to which he is allotted; and

(e) such other particulars as may be prescribed :

Provided that if the Inspector is of opinion that any muster roll or register maintained as a part of the routine of a factory gives inrespect of any or all the workers in the factory the particulars required under this section, he may, by order in writing, direct that such

muster roll or register shall to the corresponding extent be maintained in place of, and be treated as, the register of adult workers inthat factory.

(1A) No adult worker shall be required or allowed to work in any factory unless his name and other particulars have been entered inthe register of adult workers.

(2) The State Government may prescribe the form of the register of adult workers, the manner in which it shall be maintained and theperiod for which it shall be preserved.

71. WORKING HOURS FOR CHILDREN. - (1) No child shall be employed or permitted to work, in any factory - (a) for more than four

and a half hours in any day;

(b) during the night. Explanation : For the purposes of this sub-section "night" shall mean a period of at least twelve consecutivehours which shall include the interval between 10 P.M. and 6 A.M.


40/191

(2) The period of work of all children employed in a factory shall be limited to two shifts which shall not overlap or spread over morethan five hours each; and each child shall be employed in only one of the relays which shall not, except with the previous permissionin writing of the Chief Inspector, be changed more frequently than once in a period of thirty days.

(3) The provisions of section 52 shall apply also to child workers and no exemption from the provisions of that section may begranted in respect of any child.

(4) No child shall be required or allowed to work in any factory on any day on which he has already been working in another factory.

(5) No female child shall be required or allowed to work in any factory except between 8 A.M. and 7 P.M.

73. REGISTER OF CHILD WORKERS. - (1) The manager of every factory in which children are employed shall maintain a registerof child workers, to be available to the Inspector at all times during working hours or when any work is being carried on in a factory,showing - (a) the name of each child worker in the factory,

(b) the nature of his work,

(c) the group, if any, in which he is included,

(d) where his group works in shifts, the relay to which he is allotted, and

(e) the number of his certificate of fitness granted under section 69.

(1A) No child worker shall be required or allowed to work in any factory unless his name and other particulars have been entered inthe register of child workers.

(2) The State Government may prescribe the form of the register of child workers, the manner in which it shall be maintained and theperiod for which it shall be preserved.

79. ANNUAL LEAVE WITH WAGES. - (1) Every worker who has worked for a period of 240 days or more in a factory during acalendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of -(i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;

(ii) if a child, one day for every fifteen days of work formed by him during the previous calendar year.


41/191


42/191


43/191


44/191

3]Payment of Bonus Act, 1965.

It extends to the whole of India. it shall apply to,-

(a) every factory; and

(b) every other establishment in which twenty or more persons are employed on any day during an accounting year.

3[PROVIDED that the appropriate government may, after giving not less than two months' notice of its intention so to do, by

notification in the Official Gazette, apply the provisions of this Act with effect from such accounting year as may be specified in thenotification, to any establishment or class of establishments [including an establishment being a factory within the meaning of sub-clause (ii) of clause (m) of section 2 of the Factories Act, 1948 (63 of 1948)] employing such number of persons less than twenty asmay be specified in the notification; so, however, that the number of persons so specified shall in no case be less than ten.]

(4) Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which this Act applies, have effect in respect of the accounting year commencing on any day in the year 1964 and in respect of everysubsequent accounting year:

4[PROVIDED that in relation to the State of Jammu and Kashmir, the reference to the accounting year commencing on any day inthe year 1964, and every subsequent accounting year shall be construed as reference to the accounting year commencing on anyday in the year 1968 and every subsequent accounting year:]

3[PROVIDED FURTHER that when the provisions of this Act have been made applicable to any establishment or class ofestablishments by the issue of a notification under the proviso to sub-section (3), the reference to the accounting year commencingon any day in the year 1964 and every subsequent accounting year or, as the case may be, the reference to the accounting yearcommencing on any day in the year 1968 and every subsequent accounting year, shall, in relation to such establishment or class of

establishments, be construed as a reference to the accounting year specified in such notification and every subsequent accountingyear.]

(5) An establishment to which this Act applies 5[***] shall continue to be governed by this Act notwithstanding that the number ofpersons employed therein falls below twenty 3[or, as the case may be, the number specified in the notification issued under theproviso to sub-section (3)].


45/191


46/191

(ii) the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or ofany concessional supply of foodgrains or other articles;

(iii) any travelling concession;

(iv) any bonus (including incentive, production and attendance bonus);

(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee underany law for the time being in force;

(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia paymentmade to him;

(vii) any commission payable to the employee.

Explanation: Where an employee is given in lieu of the whole or part of the salary or wages payable to him, free food allowance orfree food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form partof the salary or wages of such employee;

3. Establishments to include departments, undertakings and branches

Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or indifferent places, all such departments or undertakings or branches shall be treated as parts of the same establishment for thepurpose of computation of bonus under this Act:

PROVIDED that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained inrespect of any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as aseparate establishment for the purpose of computation of bonus, under this Act for that year, unless such department or undertakingor branch was, immediately before the commencement of that accounting year treated as part of the establishment for the purpose ofcomputation of bonus.

8. Eligibility for bonus


47/191

Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this

Act, provided he has worked in the establishment for not less than thirty working days in that year.

9. Disqualification for bonus

Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he isdismissed from service for,-

(a) fraud; or

(b) riotous or violent behaviour while on the premises of the establishment; or

(c) theft, misappropriation or sabotage of any property of the establishment.

10. Payment of minimum bonus

Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year

commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33per cent of the salary or wages earned by the employee during the accounting year or one hundred rupees, whichever is higher,whether or not the employer has any allocable surplus in the accounting year:

PROVIDED that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions ofthis section shall have effect in relation to such employee as if for the words "one hundred rupees" the words "sixty rupees" weresubstituted.]

11. Payment of maximum bonus

(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonuspayable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employeein respect of that accounting year bonus which shall be an amount in proportion to the salary or wages earned by the employeeduring the accounting year subject to a maximum of twenty per cent of such salary or wage.


48/191

(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15shall be taken into account in accordance with the provisions of that section.

4] WORKMEN'S COMPENSATION ACT, 1923

1. Short title extend and commencement (1) This Act may be called the Workmen's Compensation Act 1923.

(2) It extends to the whole of India.

(3) It shall come into force on the first day of July 1924.

2. Definitions In this Act unless there is anything repugnant in the subject or context -

(b) "Commissioner" means a Commissioner for Workmen's Compensation appointed under section 20;

(c) "compensation" means compensation as provided for by this Act;

(d) "dependent" means any of the following relatives of a deceased workman namely :-

(i) a widow a minor legitimate or adopted son an unmarried legitimate or adopted daughter or a widowed mother; and

(ii) if wholly dependant on the earnings of the workman at the time of his death a son or a daughter who has attained the age of 18years and who is infirm;

(iii) if wholly or in part dependant on the earnings of the workman at the time of his death-

(a) a widower

(b) a parent other than a widowed mother


49/191

(c) a minor illegitimate son an unmarried illegitimate daughter or a daughter legitimate or illegitimate or adopted if married and aminor or if widowed and minor

(d) a minor brother or an unmarried sister or a widowed sister if a minor (e) a widowed daughter-in-law

(f) a minor child of a pre-deceased son

(g) a minor child of a pre-deceased daughter where no parent of the child is alive or

(h) a paternal grandparent if no parent of the workman is alive;

Explanation : For the purpose of sub-clause (ii) and items (f) and (g) of sub-clause (iii) references to a son daughter or child includean adopted son daughter or child respectively.

(e) "employer" includes any body of persons whether incorporated or not and any managing agent of an employer and the legalrepresentative of a deceased employer and when the services of a workman are temporarily lent or let on hire to another person bythe person with whom the workman has entered into a contract of service or apprenticeship means such other person while theworkman is working for him;

(f) "managing agent" means any person appointed or acting as the representative of another person for the purpose of carrying onsuch other person's trade or business but does not include an individual manager subordinate to an employer;

(ff) "minor" means a person who has not attained the age of 18 years;

(g) "partial disablement" means where the disablement is of a temporary nature such disablement as reduces the earning capacity ofa workman in any employment in which he was engaged at the time of the accident resulting in the disablement and where thedisablement is of a permanent nature such disablement as reduces his earning capacity in every employment which he was capableof undertaking at that time :

Provided that every injury specified in Part II of Schedule shall be deemed to result in permanent partial disablement;

(h) "prescribed" means prescribed by rules made under this Act;

(i) "qualified medical practitioner" means any person registered under any Central Act or an Act of the Legislature of a State providingfor the maintenance of a register of medical practitioners or in any area where no such last-mentioned Act is in force any person


50/191


51/191


52/191


53/191


54/191


55/191


56/191


57/191


58/191


59/191


60/191


61/191

16. Returns as to compensation The State Government may by notification in the Official Gazette direct that every personemploying workmen or that any specified class of such persons shall send at such time and in such form and to such authority as


62/191

employing workmen or that any specified class of such persons shall send at such time and in such form and to such authority asmay be specified in the notification a correct return specifying the number of injuries in respect of which compensation has been paidby the employer during the pervious year and the amount of such compensation together with such other particulars as to thecompensation as the State Government may direct.

17. Contracting out Any contract or agreement whether made before or after the commencement of this Act whereby a workmanrelinquishes any right of compensation from the employer for personal injury arising out of or in the course of the employment shallbe null and void in so far as it purports to remove or reduce the liability of any person to pay compensation under this Act.

CHAPTER III : COMMISSIONERS

19. Reference of Commissioners

If any question arises in any proceedings under this Act as to the liability of any person to pay compensation (including any questionas to whether a person injured is or is not a workman) or as to the amount of duration of compensation (including any question as tothe nature or extent of disablement) the question shall in default of agreement be settled by a Commissioner.No Civil Court shall have jurisdiction to settle decided or deal with any question which is by or under this Act required to be settleddecided or dealt with by a Commissioner or to enforce any liability incurred under this Act.

20. Appointment of Commissioners

(1) The State Government may by notification in the Official Gazette appoint any person to be a Commissioner for Workmen'sCompensation for such area as may be specified in the notification.

(2) Where more than one Commissioner has been appointed for any area the State Government may by general or special order

regulate the distribution of business between them.

(3) Any Commissioner may for the purpose of deciding any matter referred to him for decision under this Act choose one or morepersons possessing special knowledge of any matter relevant to the matter under inquiry to assist him in holding the inquiry.

(4) Every Commissioner shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860).

21. Venue of proceedings and transfer


63/191

(4) On receipt of report from a Commissioner to whom any matter has been transferred for report under sub-section (2) theCommissioner by whom it was referred shall decide the matter referred in conformity with such report.


64/191

y y p

(5) The State Government may transfer any matter from any Commissioner appointed by it to any other Commissioner appointed byit.

22. Form of application

(1) Where an accident occurs in respect of which liability to pay compensation under this Act arises a claim for such compensationmay subject to the provisions of this Act be made before the Commissioner,

(1A) Subject to the provisions of sub-section (1) no application for the settlement of any matter of Commissioner other than anapplication by a dependant or dependants for compensation shall be made unless and until some question has arisen between theparties in connection therewith which they have been unable to settle by agreement.

(2) An application to a Commissioner may be made in such form and shall be accompanied by such fee if any as may be prescribedand shall contain in addition to any particulars which may be prescribed the following particulars namely :-

(a) A concise statement of the circumstances in which the application is made and the relief or order which the applicant claims;

(b) in the case of a claim for compensation against an employer the date of service of notice of the accident on the employer and ifsuch notice has not been served or has not been served in due time the reason for such omission;

(c) the names and addresses of the parties; and

(d) except in the case of an application by dependants for compensation a concise statement of the matters on which agreement hasand of those on which agreement has not been come to.

(3) If the applicant is illiterate or for any other reason is unable to furnish the required information in writing the application shall if theapplicant so desires be prepared under the direction of the Commissioner.

22A. Power of Commissioner to require further deposit in cases of fatal accidentWhere any sum has been deposited by an employer as compensation payable in respect of a workman whose injury has resulted indeath and in the opinion of the Commissioner such sum is insufficient the Commissioner may by notice in writing stating his reasons

call upon the employer to show cause why he should not make a further deposit within such time as may be stated in the notice.(2) If the employer fails to show cause to the satisfaction of the Commissioner the Commissioner may make an award determining


65/191

the total amount payable and requiring the employer to deposit the deficiency

23. Powers and procedure of Commissioners.

The Commissioner shall have all the powers of a Civil Court under the Code of Civil Procedure 1908 (5 of 1908) for the purpose oftaking evidence on oath (which such Commissioner is hereby empowered to impose) and of enforcing the attendance of witnessesand compelling the production of documents and material objects and the Commissioner shall be deemed to be a Civil Court for allthe purposes of section 195 and of Chapter XXVI of the Code of Criminal Procedure 1973 (2 of 1974).

24. Appearance of parties

Any appearance application or act required to be made or done by any person before or to a Commissioner (other than anappearance of a party which is required for the purpose of his examination as a witness) may be made or done on behalf of suchperson by a legal practitioner or by an official of an Insurance company or a registered Trade Union or by an Inspector appointedunder sub-section (1) of section 8 of the Factories Act 1948 (63 of 1948) or under sub-section (1) of section 5 of the Mines Act 1952(35 of 1952) or by any other officer specified by the State Government in this behalf authorised in writing by such person or with the

permission of the Commissioner by any other person so authorised.

25. Method of recording evidence

The Commissioner shall make a brief memorandum of the substance of the evidence of every witness as the examination of thewitness proceeds and such memorandum shall be written and signed by the Commissioner with his own hand and shall form part ofthe record :

Provided that if the Commissioner is prevented from making such memorandum he shall record the reason of his inability to do soand shall cause such memorandum to be made in writing from his dictation and shall sign the same and such memorandum shallform part of the record :

Provided further that the evidence of any medical witness shall be take down as nearly as may be word for word.

26. Costs

All costs incidental to any proceedings before a Commissioner shall subject to rules made under this Act be in the discretion of the


66/191

Commissioner.

(1) An appeal shall lie to the High Court from the following orders of a Commissioner namely :-

(a) an order as awarding as compensation a lump sum whether by way of redemption of a half-monthly payment or otherwise ordisallowing a claim in full or in part for a lump sum;

(a) an order awarding interest or penalty under section 4A;

(b) an order refusing to allow redemption of a half-monthly payment;

(c) an order providing for the distribution of compensation among the dependants of a deceased workman or disallowing any claim ofa person alleging himself to be such dependant;

(d) an order allowing or disallowing any claim for the amount of an indemnity under the provisions of sub-section (2) of section 12; or

(e) an order refusing to register a memorandum of agreement or registering the same or providing for the registration of the samesubject to conditions :

Provided that no appeal shall lie against any order unless a substantial question of law is involved in the appeal and in the case of anorder other than an order such as is referred to in clause (b) unless the amount in dispute in the appeal is not less than threehundred rupees :

Provided further that no appeal shall lie in any case in which the parties have agreed to abide by the decision of the Commissioner orin which the order of the Commissioner gives effect to an agreement come to by the parties :

Provided further that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by acertificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the order appealedagainst.

The period of limitation for an appeal under this section shall be sixty days.(3) The provisions of section 5 of the Limitation Act 1963 (36 of 1963) shall be applicable to appeals under this section.

31. Recovery


67/191

The Commissioner may recover as an arrear of land revenue any amount payable by any person under this Act whether under anagreement for the payment of compensation or otherwise and the Commissioner shall be deemed to be a public officer within themeaning of section 5 of the Revenue Recovery Act 1890 (1 of 1890).

5]PAYMENT OF WAGES ACT, 1936

An Act to regulate the payment of wages of certain classes of 1[employed persons]

1. Short title, extent, commencement and application

(1) This Act may be called the Payment of Wages Act, 1936.

2[(2) It extends to the whole of India

(3) It shall come into force on such 4[date] as the Central Government may, by notification in the Official Gazette, appoint.

(4) It applies in the first instance to the payment of wages to persons employed in any 5[factory, to persons] employed(otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by aperson fulfilling a contract with a railway administration, 6[and to persons employed in an industrial or other establishmentspecified in sub-clauses (a) to (g) of clause (ii) of section 2.]

(5) The State Government may, after giving three months notice of its intention of so doing, by notification in the OfficialGazette, extend the provisions of 7[this Act] or any of them to the payment of wages to any class of persons employed in8[any establishment or class of establishments specified by the Central Government or a State Government under sub-clause(h) of clause (ii) of section 2]:

9[PROVIDED that in relation to any such establishment owned by the Central Government no such notification shall beissued except with the concurrence of that governments.]

(6) Nothing in this Act shall apply to wages payable in respect of a wage-period which, over such wage-period, average10[one thousand six hundred rupees] a month or more.

2. Definitions


68/191

In this Act, unless there is anything repugnant in the subject or context,-

11[(i) "employed person" includes the legal representative of a deceased employed person;

(ia) "employer" includes the legal representative of a deceased employer;

(ib) "factory" means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948) and includes anyplace to which the provisions of that Act have been applied under sub-section (1) of section 85 thereof;]

(ii) 12["industrial or other establishment"] means any-

11[(a) tramway service , or motor transport service engaged in carrying passengers or goods or both by road for hire orreward;

(aa) air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces ofthe Union or the Civil Aviation Department of the Government of India;]

(b) dock, wharf or jetty;

13[(c) inland vessel, mechanically propelled;]

(d) mine quarry or oil field;


69/191

(d) mine, quarry or oil-field;

(e) plantation;

(f) workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use,transport or sale;

14[(g) establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridgesor canals, or relating to operations connected with navigation, irrigation, or to the supply of water or relating to the generation,transmission and distribution of electricity or any other form of power is being carried on;]

6[(h) any other establishment or class of establishments which the Central Government or a State Government may, havingregard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify,by notification in the Official Gazette.]

15[(iia) "mine" has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);]

11[(iii) "plantation" has the meaning assigned to it in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);]

(v) "railway administration" has the meaning assigned to it in clause (6) of section 3 of the Indian Railways Act, 1890 (9 of1890); and

13[(vi) "wages" means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money orcapable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to aperson employed in respect of his employment or of work done in such employment, and includes-

(a) any remuneration payable under any award or settlement between the parties or order of a court;

(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);


70/191

(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or

instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the timewithin which the payment is to be made;

(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force,

but does not include-

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payableunder the terms of employment or which is not payable under any award or settlement between the parties or order of a court;

(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of anyservice excluded from the computation of wages by a general or special order of the State Government;

(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;

(4) any travelling allowance or the value of any travelling concession;

(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or

(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]

3. Responsibility for payment of wages

Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under thisAct:

PROVIDED that, in the case of persons employed (otherwise than by a contractor)-

(a) in factories, if a person has been named as the manager of the factory under 16[clause (f) of sub-section (1) of section 7


71/191

(a) in factories, if a person has been named as the manager of the factory under 16[clause (f) of sub section (1) of section 7of the Factories Act, 1948 (63 of 1948)];

17[(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of

the industrial or other establishments;]

(c) upon railways (otherwise than in factories), if the employer is the railway administration and the railway administration has

nominated a person in this behalf for the local area concerned.

The person so named, the person so responsible to the employer, or the person so nominated, as the case may be 18[shall

also be responsible] for such payment.

4. Fixation of wage-periods

(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable.

(2) No wage-period shall exceed one month.

5. Time of payment of wages


72/191

p y g

(1) The wages of every person employed upon or in-

(a) any railway, factory or 12[industrial or other establishment] upon or in which less than one thousand persons areemployed, shall be paid before the expiry of the seventh day,

(b) any other railway, factory or 12[industrial or other establishment], shall be paid before the expiry of the tenth day,

after the last day of the wage-period in respect of which the wages are payable:

15[PROVIDED that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found dueon completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paidbefore the expiry of the seventh day from the day of such completion.]

(2) Where the employment of any person is terminated by or on behalf of the employer, the wages, earned by him shall bepaid before the expiry of the second working day from the day on which his employment is terminated:

15[PROVIDED that where the employment of any person in an establishment is terminated due to the closure of theestablishment for any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid beforethe expiry of the second day from the day on which his employment is so terminated]

(3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may bespecified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwisethan in a factory ) 15[or to persons employed as daily-rated workers in the Public Works Department of the CentralGovernment or the State Government] from the operation of this section in respect of wages of any such persons or class of

such persons:

15[PROVIDED that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made exceptin consultation with the Central Government.]

(4) 19[Save as otherwise provided in sub-section (2), all payments] of wages shall be made on a working day.

6. Wages to be paid in current coin or currency notes


73/191

All wages shall be paid in current coin or currency notes or in both:

20[PROVIDED that the employer may, after obtaining the written authorisation of the employed person, pay him the wageseither by cheque or by crediting the wages in his bank account.]

7. Deductions which may be made from wages

(1) Notwithstanding the provisions of sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890), the wages ofan employed person shall be paid to him without deductions of any kind except those authorised by or under this Act.

21[Explanation I ] : Every payment made by the employed person to the employer or his agent shall, for the purposes of thisAct, be deemed to be a deduction from wages.

14[Explanation II: Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of

any of the following penalties, namely:-

(i) the withholding of increment or promotion (including the stoppage of increment at an efficiency bar);

(ii) the reduction to a lower post or time scale or to a lower stage in a time scale; or

(iii) suspension;

shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition ofany such penalty are in conformity with the requirements, if any, which may be specified in this behalf by the StateGovernment by notification in the Official Gazette.]


74/191

(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, andmay be of the following kinds only, namely:

(a) fines;

(b) deductions for absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of moneyfor which he is required to account, where such damage or loss is directly attributable to his neglect or default;

13[(d) deductions for house-accommodation supplied by the employer or by government or any housing board set up underany law for the time being in force (whether the government or the board is the employer or not) or any other authorityengaged in the business of subsidising house- accommodation which may be specified in this behalf by the StateGovernment by notification in the Official Gazette;]

(e) deductions for such amenities and services supplied by the employer as the 22[***] State Government 15[or any officerspecified by it in this behalf] may, by general or special order, authorise.

Explanation: The word "services" in 23[this clause] does not include the supply of tools and raw materials required for thepurposes of employment;

11[(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyanceallowance), and the interest due in respect thereof, or for adjustment of over-payments of wages;

(ff) deductions for recovery of loans made from any fund constituted for the welfare of labour in accordance with the rulesapproved by the State Government, and the interest due in respect thereof;

(fff) deductions for recovery of loans granted for house-building or other purposes approved by the State Government and theinterest due in respect thereof;]


75/191

granted by the employed person where such loss is directly attributable to his neglect or default;]

20[(p) deductions, made with the written authorisation of the employed person, for contribution to the Prime MinistersNational Relief Fund or to such other Fund as the Central Government may by notification in the Official Gazette specify;]


76/191

National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify;]

28[(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of itsemployees.]

15[(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section(2) in any wage-period from the wages of any employed person shall not exceed-

(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-

section (2), seventy-five per cent of such wages, and

(ii) in any other case, fifty per cent of such wages:

PROVIDED that where the total deductions authorised under sub-section (2) exceed seventy five per cent or, as the casemay be, fifty per cent of the wages, the excess may be recovered in such manner as may be prescribed.

(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of theemployed person or otherwise any amount payable By such person under any law for the time being in force other than the

Indian Railways Act, 1890 (9 of 1890).]

8. Fines(1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer,with the previous approval of the State Government or of the prescribed authority, may have specified by notice under sub-section (2).

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the

employment is carried on or in the case of persons employed upon a railway (otherwise than in a factory), at the prescribedplace or places.

(3) No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against thefine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.

(4) The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an


77/191

10. Deductions for damage or loss


78/191

11[(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage orloss caused to the employer by the neglect or default of the employed person.

(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7until the employed person has been given an opportunity of showing cause against the deduction or otherwise than inaccordance with such procedure as may be prescribed for the making of such deduction.]

(2) All such deduction and all realisations thereof shall be recorded in a register to be kept by the person responsible for the

payment of wages under section 3 in such form as may be prescribed.

11. Deductions for services rendered

A deduction under clause (d) or clause (e) of sub-section (2) of section 7 shall not be made from the wages of an employed person,unless the house-accommodation amenity or service has been accepted by him, as a term of employment or otherwise, and suchdeduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and, in thecase of deduction under the said clause (e), shall be subject to such conditions as 22[***] the State Government may impose.

12. Deductions for recovery of advances

Deductions under clause (f) of sub-section (2) of section 7 shall be subject to the following conditions, namely:

(a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of acomplete wage-period, but no recovery shall be made of such advances given for travelling-expenses;

15[(aa) recovery of an advance of money given after employment began shall be subject to such conditions as the State Governmentmay impose;]

(b) recovery of advances of wages not already earned shall be subject to any rules made by the State Government regulating theextent to which such advances may be given and the instalments by which they may be recovered.

15[12A. Deductions for recovery of loansDeductions for recovery of loans granted under clause (fff) of sub-section (2) of section 7 shall be subject to any rules made by theState Government regulating the extent to which such loans may be granted and the rate of interest payable thereon.]


79/191

13. Deductions for payments to co-operative societies and insurance schemes

Deductions under clause (j) 27[and clause (k)] of sub-section (2) of section 7 shall be subject to such conditions as the StateGovernment may impose.

15[13A. Maintenance of registers and records(1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work

performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such otherparticulars and in such form as may be prescribed.

(2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for aperiod of three years after the date of the last entry made therein].

14. Inspectors

(1) An Inspector of Factories appointed under 31[sub-section (1) of section 8 of the Factories Act, 1948 (63 of 1948)], shall be anInspector for the purposes of this Act in respect of all factories within the local limits assigned to him.

(2) The State Government may appoint Inspectors for the purposes of this Act in respect of all persons employed upon a railway(otherwise than in a factory) to whom this Act applies.

(3) The State Government may, by notification in the Official Gazette, appoint such other persons as it thinks fit to be Inspectors forthe purposes of this Act, and may define the local limits within which and the class of factories and 12[industrial or other

establishments] in respect of which they shall exercise their functions.

11[(4) An Inspector may,

(a) make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act or rules madethereunder are being observed;

(b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises of any railway, factory or 12[industrial orother establishment] at any reasonable time for the purpose of carrying out the objects of this Act;

(c) supervise the payment of wages to persons employed upon any railway or in any factory or 12[industrial or other establishment];


80/191

( ) p p y g p p y p y y y y [ ];

(d) require by a written order the production at such place, as may be prescribed, of any register maintained in pursuance of this Actand take on the spot or otherwise statements of any persons which he may consider necessary for carrying out the purposes of this

Act;

(e) seize or take copies of such registers or documents or portions thereof as he may consider relevant in respect of an offenceunder this Act which he has reason to believe has been committed by an employer;

(f) exercise such other powers as may be prescribed:

PROVIDED that no person shall be compelled under this sub-section to answer any question or make any statement tending toincriminate himself.]

(4A) The provisions of the 32[Code of Criminal Procedure, 1973 (2 of l974)]shall, so far as may be, apply to any search or seizureunder this sub-section as they apply to any search or seizure made under the authority of a warrant issued under 33[section 94] ofthe said Code].

(5) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code, 1860 (45 of 1860).

15[14A. Facilities to be afforded to InspectorsEvery employer shall afford an Inspector all reasonable facilities for making any entry, inspection, supervision, examination or inquiryunder this Act.]

15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatiousclaims

(1) The State Government may, by notification in the Official Gazette, appoint 15[a presiding officer of any Labour Court or IndustrialTribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947), or under any corresponding law relating to theinvestigation and settlement of industrial disputes in force in the State or] any Commissioner for Workmens Compensation or otherofficer with experience as a Judge of a Civil Court or as a Stipendiary Magistrate to be the authority to hear and decide for anyspecified area all claims arising out of deductions from the wages, or delay in payment of the wages, 34[of persons employed or paidin that area, including all matters, incidental to such claims:


81/191

(a) that the application was either malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid tothe employer or other person responsible for the payment of wages by the person presenting the application; or


82/191

(b) that in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have beencompelled to seek redress under this section, the authority may direct that a penalty not exceeding fifty rupees be paid to the StateGovernment by the employer or other person responsible for the payment of wages.

(4A) Where there is any dispute as to the person or persons being the legal representative or representatives of the employer or ofthe employed person, the decision of the authority on such dispute shall be final.

(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaning of sections 193, 219 and 228 ofthe Indian Penal Code (45 of 1860).]

(5) Any amount directed to be paid under this section may be recovered-

(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate, and

(b) if the authority is not a Magistrate, by any Magistrate to whom the authority makes application in this behalf, as if it were a fineimposed by such Magistrate.

17. Appeal

(1) 37[An appeal against an order dismissing either wholly or in part an application made under sub-section (2) of section 15, oragainst a direction made under sub-section (3) or sub-section (4) of that section] may be preferred, within thirty days of the date onwhich 38[the order or direction] was made, in a Presidency-town 39[***] before the Court of Small Causes and elsewhere before theDistrict Court-

(a) by the employer or other person responsible for the payment of wages under section 3, if the total sum directed to be paid by wayof wages and compensation exceeds three hundred rupees 15[or such direction has the effect of imposing on the employer or theother person a financial liability exceeding one thousand rupees], or

11[(b) by an employed person or any legal practitioner or any official of a registered trade union authorised in writing to act on hisbehalf or any Inspector under this Act, or any other person permitted by the authority to make an application under sub-section (2) ofsection 15, if the total amount of wages claimed to have been withheld from the employed person exceeds twenty rupees or from the


83/191

less than two hundred rupees but which may extend to one thousand rupees.]

(2) Whoever contravenes the provisions of section 4, 43[sub-section (4) of section 5, section 6, sub-section (8) of section 8, sub-section (2) of section 10] or section 25 shall be punishable with fine which may extend to 44[five hundred rupees.]


84/191

15[(3) Whoever being required under this Act to maintain any records or registers or to furnish any information or return-

(a) fails to maintain such register or record; or

(b) wilfully refuses or without lawful excuse neglects to furnish such information or return; or

(c) wilfully furnishes or causes to be furnished any information or return which he knows to be false; or

(d) refuses to answer or wilfully gives a false answer to any question necessary for obtaining any information required to be furnishedunder this Act,

shall, for each such offence, be punishable with fine 45[which shall not be less than two hundred rupees but which may extend toone thousand rupees].

(4) Whoever-

(a) wilfully obstructs an Inspector in the discharge of his duties under this Act; or

(b) refuses or wilfully neglects to afford an Inspector any reasonable facility for making any entry, inspection, examination,supervision, or inquiry authorised by or under this Act in relation to any railway, factory or 12[industrial or other establishment]; or

(c) wilfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or

(d) prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person fromappearing before or being examined by an Inspector acting in pursuance of his duties under this Act;

shall be punishable with fine 45[which shall not be less than two hundred rupees but which may extend to one thousand rupees.]

(5) If any person who has been convicted of any offence punishable under this Act is again guilty of an offence involvingcontravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term 46[which shallnot be less than one month but which may extend to six months and with fine which shall not be less than five hundred rupees but

which may extend to three thousand rupees]:

PROVIDED that for the purpose of this sub-section no cognizance shall be taken of any conviction made more than two years beforethe date on which the commission of the offence which is being punished came to the knowledge of the Inspector.


85/191

(6) If any person fails or wilfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, heshall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to47[one hundred rupees] for each day for which such failure or neglect continues.]

23. Contracting out

Any contract or agreement, whether made before or after the commencement of this Act, whereby an employed person relinquishesany right conferred by this Act

Personnel Law Revised

Documents

Transcript of Personnel Law Revised