Personnel Law

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1] Apprentices Act, 1961

PREAMBLE [52 OF 1961]

An Act to provide for the regulation and control of training apprentices and for matters connected therewith. BE it enacted byParliament in the Twelfth Year of the Republic of India as follows :-

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

It extends to the whole of India.

The provisions of this Act shall not apply to - (a) any area or to any industry in any area unless the Central Government bynotification in the Official Gazette specifies that area or industry as an area or industry to which the said provisions shall apply witheffect from such date as may be mentioned in the notification; (b) any such special apprenticeship scheme for imparting training toapprentices as may be notified by the Central Government in the Official Gazette.

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 acontract of apprenticeship and under prescribed terms and conditions which may be different for different categories of apprentices;

(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 under sub-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

(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 or managed 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 theOfficial 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 for remunerationand 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 a



department 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,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, datedthe 21st August, 1956 and re-named as the National Council for Vocational Training by the resolution of the Government of India in the Ministry of Labour (Directorate-General of Employment and Training) No. DGET/12/21/80-TC, dated the 30thSeptember, 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 beprescribed;

(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 for different categories of apprentices.

3. RESERVATION OF TRAINING PLACES FOR THE SCHEDULED CASTES AND THE SCHEDULED TRIBES IN DESIGNATEDTRADES. - (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) The Apprenticeship Adviser shall not register a contract of apprenticeship unless he is satisfied that the person described as anapprentice in the contract is qualified under this Act for being engaged as an apprentice to undergo apprenticeship training in thedesignated trade specified in the contract.

(6) Where the Central Government, after consulting the Central Apprenticeship Council, makes any rule varying the terms andconditions of apprenticeship training of any category of apprentices undergoing such training, then, the terms and conditions of everycontract of apprenticeship relating to that category of apprentices and subsisting immediately before the making of such rule shall bedeemed to have been modified accordingly

6. PERIOD OF APPRENTICESHIP TRAINING. - The period of apprenticeship training, which shall be specified in the contract of apprenticeship, shall be as follows :- (a) in the case of trade apprentices who, having undergone institutional training in a school or other institution recognised by the National Council, have passed the trade tests or examinations conducted by that Council or by aninstitution recognised by that Council, the period of apprenticeship training shall be such as may be determined by that Council or byan institution recognised by that Council;

(aa) in the case of trade apprentices who, having undergone institutional training in a school or other institution affiliated to or recognised by a Board or State Council of Technical Education or any other authority which the Central Government may, bynotification in the Official Gazette specify in this behalf, have passed the trade tests or examinations conducted by that Board or State Council or authority, the period of apprenticeship training shall be such as may be prescribed;

(b) in the case of other trade apprentices, the period of apprenticeship training shall be such as may be prescribed;

(c) in the case of graduate or technician apprentices, technician (vocational) apprentices the period of apprenticeship training shall besuch as may be prescribed.

7. TERMINATION OF APPRENTICESHIP CONTRACT. - (1) The contract of apprenticeship shall terminate on the expiry of theperiod of apprenticeship training.



(2) Either party to a contract of apprenticeship may make an application to the Apprenticeship Adviser for the termination of thecontract, and when such application is made, shall send by post a copy thereof to the other party to the contract.

(3) After considering the contents of the application and the objections, if any, filed by the other party, the Apprenticeship Adviser may, by order in writing, terminate the contract if he is satisfied that the parties to the contract or any of them have or has failed to

carry out the terms and conditions of the contract and that it is desirable in the interests of the parties or any of them to terminate thesame :

Provided that where a contract is terminated - (a) for failure on the part of the employer to carry out the terms and conditions of thecontract, the employer shall pay to the apprentice such compensation as may be prescribed;

(b) for such failure on the part of the apprentice, the apprentice or his guardian shall refund to the employer as cost of training suchamount as may be determined by the Apprenticeship Adviser.

(4) Notwithstanding anything contained in any other provision of this Act, where a contract of apprenticeship has been terminated by

the Apprenticeship Adviser before the expiry of the period of apprenticeship training and a new contract of apprenticeship is beingentered into with a new employer, the Apprenticeship Adviser may, if he is satisfied that the contract of apprenticeship with theprevious employer could not be completed because of any lapse on the part of the previous employer, permit the period of apprenticeship training already undergone by the apprentice with his previous employer to be included in the period of apprenticeshiptraining to be undertaken with the new employer.

9. PRACTICAL AND BASIC TRAINING OF APPRENTICES. - (1) Every employer shall make suitable arrangements in his workshopfor imparting a course of practical training to every apprentice engaged by him in accordance with the programme approved by theApprenticeship Adviser.

(2) The Central Apprenticeship adviser or any other person not below the rank of an Assistant Apprenticeship Adviser authorised by

the Central Apprenticeship Adviser in writing in this behalf shall be given all reasonable facilities for access to each such apprenticewith a view to test his work and to ensure that the practical training is being imparted in accordance with the approved programme :

Provided that the State Apprenticeship Adviser or any other person not below the rank of an Assistant. Apprenticeship Adviser authorised by the State Apprenticeship Adviser in writing in this behalf shall also be given such facilities in respect of apprenticesundergoing training in establishments in relation to which the appropriate Government is the State Government.

(3) Such of the trade apprentices as have not undergone institutional training in a school or other institution recognised by theNational Council or any other institution affiliated to or recognized by a Board or State Council of Technical Education or any other



authority which the Central Government may, by notification in the Official Gazette, specify in this behalf, shall, before admission inthe workshop for practical training, undergo a course of basic training.

(4) Where an employer employs in his establishment five hundred or more workers, the basic training shall be imparted to the tradeapprentices either in separate parts of the workshop building or in a separate building which shall be set up by the employer himself,

but the appropriate Government may grant loans to the employer on easy terms and repayable by easy installments to meet the costof the land, construction and equipment for such separate building.

(4A) Notwithstanding anything contained in sub-section (4), if the number of apprentices to be trained at any time in anyestablishment in which five hundred or more workers are employed, is less than twelve the employer in relation to suchestablishment may depute all or any of such apprentices to any Basic Training Center or Industrial Training Institute for basic trainingin any designated trade, in either case, run by the Government.

(4B) Where an employer deputes any apprentice under sub-section (4A), such employer shall pay to the Government the expensesincurred by the Government on such training, at such rate as may be specified by the Central Government.

(5) Where an employer employs in his establishment less than five hundred workers, the basic training shall be imparted to the tradeapprentices in training institutes set up by the Government.

(6) In any such training institute, which shall be located within the premises of the most suitable establishment in the locality or at anyother convenient place, the trade apprentices engaged by two or more employers may be imparted basic training.

(7) In the case of an apprentice other than a graduate or technician apprentice, technician (vocational) apprentice the syllabus of andthe equipment to be utilised for practical training including basic training shall be such as may be approved by the CentralGovernment in consultation with the Central Apprenticeship Council.

(7A) In the case of graduate or technician apprentices, technician (vocational) apprentices the programme of apprenticeship trainingand the facilities required for such training in any subject field in engineering or technology or vocational course shall be such as maybe approved by the Central Government in consultation with the Central Apprenticeship Council.

(8)(a) Recurring costs (including the cost of stipends) incurred by an employer in connection with basic training, imparted to tradeapprentices other than those referred to in clauses (a) and (aa) of section 6 shall be borne - (i) if such employer employs two hundredand fifty workers or more, by the employer; (ii) if such employer employs less than two hundred and fifty workers, by the employer and the Government in equal shares up to such limit as may be laid down by the Central Government and beyond that limit, by theemployer alone; and



(b) Recurring costs (including the cost of stipends), if any, incurred by an employer in connection with practical training, includingbasic training, imparted to trade apprentices referred to in clauses (a) and (aa) of section 6 shall, in every case, be borne by theemployer.

(c) Recurring costs (excluding the cost of stipends) incurred by an employer in connection with the practical training imparted to

graduate or technician apprentices, technician (vocational) apprentices shall be borne by the employer and the cost of stipends shallbe borne by the Central Government and the employer in equal shares up to such limit as may be laid down by the CentralGovernment and beyond that limit, by the employer alone.

10. RELATED INSTRUCTION OF APPRENTICES. - (1) A trade apprentice who is undergoing practical training in an establishmentshall, during the period of practical training, be given a course of related instruction (which shall be appropriate to the trade) approvedby the Central Government in consultation with the Central Apprenticeship Council, with a view to giving the trade apprentice suchtheoretical knowledge as he needs in order to become fully qualified as a skilled craftsman.

(2) Related instruction shall be imparted at the cost of the appropriate Government but the employer shall, when so required, affordall facilities for imparting such instruction.

(3) Any time spent by a trade apprentice in attending classes on related instruction shall be treated as part of his paid period of work.

(4) In the case of trade apprentices who, after having undergone a course of institutional training, have passed the trade testsconducted by the National Council or have passed the trade tests and examinations conducted by a Board or State Council of Technical Education or any other authority which the Central Government may, by notification in the Official Gazette, specify in thisbehalf, the related instruction may be given on such reduced or modified scale as may be prescribed.

(5) Where any person has, during his course in a technical institution, become a graduate or technician apprentice, technician(vocational) apprentice and during his apprenticeship training he has to receive related instruction, then, the employer shall release

such person from practical training to receive the related instruction in such institution, for such period as may be specified by theCentral Apprenticeship Adviser or by any other person not below the rank of an Assistant Apprenticeship Adviser authorised by theCentral Apprenticeship Adviser in writing in this behalf.

11. OBLIGATIONS OF EMPLOYERS. - Without prejudice to the other provisions of this act, every employer shall have the followingobligations in relation to an apprentice, namely :- (a) to provide the apprentice with the training in his trade in accordance with theprovisions of this Act, and the rules made there under;

(b) if the employer is not himself qualified in the trade, to ensure that a person who possesses the prescribed qualifications is placedin charge of the training of the apprentice;



(bb) to provide adequate instructional staff, possessing such qualifications as may be prescribed, for imparting practical andtheoretical training and facilities for trade test of apprentices; and

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

12. OBLIGATIONS OF APPRENTICES. - (1) Every trade apprentice undergoing apprenticeship training shall have the followingobligations, namely :- (a) to learn his trade conscientiously and diligently and endeavor to qualify himself as a skilled craftsmanbefore the expiry of the period of training;

(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 of apprenticeship 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 if they 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 whileundergoing practical training in a workshop shall be such as may be prescribed.

(2) No apprentice shall be required or allowed to work overtime except with the approval of the Apprenticeship Adviser who shall notgrant such approval unless he is satisfied that such overtime is in the interest of the training of the apprentice or in the public interest.

(3) An apprentice shall be entitled to such leave as may be prescribed and to such holidays as are observed in the establishment inwhich he is undergoing training.

16. EMPLOYER'S LIABILITY FOR COMPENSATION FOR INJURY. - If personal injury is caused to an apprentice, by accidentarising out of and in the course of his training as an apprentice, his employer shall be liable to pay compensation which shall bedetermined and paid, so far as may be, in accordance with the provisions of the Workmen's Compensation Act, 1923 (8 of 1923),subject to the modifications specified in the Schedule. 17. CONDUCT AND DISCIPLINE. - In all matters of conduct and discipline, the apprentice shall be governed by the rules andregulations applicable to employees of the corresponding category in the establishment in which the apprentice is undergoingtraining.

18. APPRENTICES ARE TRAINEES AND NOT WORKERS. - Save as otherwise provided in this Act, - (a) every apprenticeundergoing apprenticeship training in a designated trade in an establishment shall be a trainee and not a worker; and

(b) the provisions of any law with respect to labour shall not apply to or in relation to such apprentice.

19. RECORDS AND RETURNS. - (1) Every employer shall maintain records of the progress of training of each apprenticeundergoing apprenticeship training in his establishment in such form as may be prescribed.

(2) Every such employer shall also furnish such information and returns in such form, to such authorities and at such intervals as maybe prescribed.

20. SETTLEMENT OF DISPUTES. - (1) Any disagreement or dispute between an employer and an apprentice arising out of thecontract of apprenticeship shall be referred to the Apprenticeship Adviser for decision.



(2) Any person aggrieved by the decision of the Apprenticeship Adviser under sub-section (1) may, within thirty days from the date of communication to him of such decision, prefer an appeal against the decision to the Apprenticeship Council and such appeal shall beheard and determined by a Committee of that Council appointed for the purpose.

(3) The decision of the Committee under sub-section (2) and subject only to such decision, the decision of the Apprenticeship

Adviser under sub-section (1) shall be final.

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 be

assessed 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 or remuneration 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) TheNational Council,



(b) The Central Apprenticeship Council,

(c) The State Council,

(d) The State Apprenticeship Council,

(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 the

Central 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 itby 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 maintainedin pursuance of this Act and take on the spot or otherwise statements of any person which he may consider necessary for



carrying 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 :

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 powersspecified 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 or make 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 such

information 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 or does 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 behalf any 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

(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

FACTORIES ACT, 1948.

PREAMBLE

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

WHEREAS it is expedient to consolidate and amend the law regulating labour in factories; It is hereby enacted as follows :-

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 whohas 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 thereof would - (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

(iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; lra-6 ]

[ lra-7 or lra-7 ]

(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; (Inserted by the Factories (Amendment)Act, 1976, w.e.f. 26-10-1976.)

(vi) preserving or storing any article in cold storage; (l) "worker" means a person employed, directly or by or through any agency(including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not, in anymanufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kindof work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process but does not includeany member of the armed forces of the union;

(m) "factory" means any premises including the precincts thereof - (i) whereon ten or more workers are working, or were working onany day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power,or is ordinarily so carried on, or

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, but does not include a minesubject to the operation of the Mines Act, 1952 (35 of 1952), or a mobile unit belonging to the armed forces of the union, a railwayrunning shed or a hotel, restaurant or eating place;



Explanation I : For computing the number of workers for the purposes of this clause all the workers in different groups and relays in aday shall be taken into account.

Explanation II : For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installedin 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;

. INSPECTORS. - (1) The State Government may, by notification in the Official Gazette, appoint such persons as possess theprescribed qualification to be Inspectors for the purposes of this Act and may assign to them such local limits as it may think fit.

(2) The State Government may, by notification in the Official Gazette, appoint any person to be a Chief Inspector who shall, inaddition to the powers conferred on a Chief Inspector under this Act, exercise the powers of an Inspector throughout the State.

(2A) The State Government may, by notification in the Official Gazette, appoint as many Additional Chief Inspectors, Joint Chief Inspectors and Deputy Chief Inspectors and as many other officers as it thinks fit to assist the Chief Inspector and to exercise such of the powers of the Chief Inspector as may be specified in such notification.

(2B) Every Additional Chief Inspector, Joint Chief Inspector, Deputy Chief Inspector and every other officer appointed under sub-section (2A) shall, in addition to the powers of a Chief Inspector specified in the notification by which he is appointed, exercise thepowers of an Inspector throughout the State.

(3) No person shall be appointed under sub-section (1), sub-section (2) sub-section (2A) lra-38 ] or sub-section (5), or having beenso appointed, shall continue to hold office, who is or becomes directly or indirectly interested in a factory or in any process or business carried on therein or in any patent or machinery connected therewith.

(4) Every District Magistrate shall be an Inspector for his district.

(5) The State Government may also, by notification as aforesaid, appoint such public officers as it thinks fit to be additionalInspectors for all or any of the purposes of this Act, within such local limits as it may assign to them respectively.

(6) In any area where there are more Inspectors than one the State Government may, by notification as aforesaid, declare thepowers, which such Inspectors shall respectively exercise and the Inspector to whom the prescribed notices are to be sent.



(7) Every Chief Inspector, Additional Chief Inspector, Joint Chief Inspector, Deputy Chief Inspector, Inspector and every other officer appointed under this section shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860), andshall be officially subordinate to such authority as the State Government may specify in this behalf.

9. POWERS OF INSPECTORS. - Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is

appointed, - (a) enter, with such assistants being persons in the service of the Government, or any local or other public authority, or with an expert as he thinks fit, any place which is used, or which he has reason to believe is used, as a factory;

(b) make examination of the premises, plant, machinery, article or substance;

(c) inquire into any accident or dangerous occurrence, whether resulting in bodily injury, disability or not, and take on the spot or otherwise statements of any person which he may consider necessary for such inquiry;

(d) require the production of any prescribed register or any other document relating to the factory;

(e) seize, or take copies of, any register, record or other document or any portion thereof, as he may consider necessary in respect of any offence under this Act, which he has reason to believe, has been committed;

(f) direct the occupier that any premises or any part thereof, or anything lying therein, shall be left undisturbed (whether generally or in particular respects) for so long as is necessary for the purpose of any examination under clause (b);

(g) take measurements and photographs and make such recordings as he considers necessary for the purpose of any examinationunder clause (b), taking with him any necessary instrument or equipment;

(h) in case of any article or substance found in any premises, being an article or substance which appears to him as having causedor is likely to cause danger to the health or safety of the workers, direct it to be dismantled or subject it to any process or test (but not

so as to damage or destroy it unless the same is, in the circumstances necessary, for carrying out the purposes of this Act), and takepossession of any such article of substance or a part thereof, and detain it for so long as is necessary for such examination; (i)exercise such other powers as may be prescribed :

Provided that no person shall be compelled under this section to answer any question or give any evidence tending to incriminatehimself.



10 CERTIFYING SURGEONS. - (1) The State Government may appoint qualified medical practitioners to be certifying surgeons for the purposes of this Act within such local limits or for such factory or class or description of factories as it may assign to themrespectively.

(2) A certifying surgeon may, with the approval of the State Government, authorize any qualified medical practitioner to exercise any

of his powers under this Act for such period as the certifying surgeon may specify and subject to such conditions as the StateGovernment may think fit to impose, and references in this Act to a certifying surgeon shall be deemed to include references to anyqualified medical practitioner when so authorized.

(3) No person shall be appointed to be, or authorized to exercise the powers of, a certifying surgeon, or having been so appointed or authorized, continue to exercise such powers, who is, or becomes the occupier of a factory or is or becomes directly or indirectlyinterested therein or in any process or business carried on therein or in any patent or machinery connected therewith or is otherwisein the employ of the factory :

Provided that the State Government may, by order in writing and subject to such conditions as may be specified in the order, exemptany person or class of persons from the provisions of this sub-section in respect of any factory or class or description of factories.

(4) The certifying surgeon shall carry out such duties as may be prescribed in connection with - (a) the examination and certificationof young persons under this Act;

(b) the examination of persons engaged in factories in such dangerous occupations or processes as may be prescribed;

(c) the exercising of such medical supervision as may be prescribed for any factory or class or description of factories where - (i)cases of illness have occurred which it is reasonable to believe are due to the nature of the manufacturing process carried on, or other conditions of work prevailing, therein;

(ii) by reason of any change in the manufacturing process carried on or in the substances used therein or by reason of the adoptionof any new manufacturing process or of any new substance for use in a manufacturing process, there is a likelihood of injury to thehealth of workers employed in that manufacturing process;

(iii) young persons are, or are about to be, employed in any work which is likely to cause injury to their health. Explanation : In thissection "qualified medical practitioner" means a person holding a qualification granted by an authority specified in the Schedule to theIndian Medical Degrees Act, 1916 (7 of 1916) or in the Schedules to the Indian Medical Council Act, 1933 (27 of 1933).

Health Provisions



11. CLEANLINESS. - (1) Every factory shall be kept clean and free from effluvia arising from any drain, privy or other, nuisance, andin particular - (a) accumulations of dirt and refuse shall be removed daily by sweeping or by any other effective method from thefloors and benches of workrooms and from staircases and passages, and disposed of in a suitable manner;

(b) the floor of every workroom shall be cleaned at least once in every week by washing, using disinfectant, where necessary, or by

some other effective method;

(c) where a floor is liable to become wet in the course of any manufacturing process to such extent as is capable of being drained,effective means of drainage shall be provided and maintained;

(d) all inside walls and partitions, all ceilings or tops of rooms and all walls, sides and tops of passages and staircases shall - (i)where they are painted otherwise than with washable water-paint or varnished, be repainted or revarnished least once in everyperiod of five years;

(ia) where they are painted with washable water paint, be repainted with at least one coat of such paint at least once in every periodof three years and washed at least once in every period of six months;

(ii) where they are painted or varnished or where they have smooth impervious surfaces, be cleaned at least once in every period of fourteen months by such method as may be prescribed;

(iii) in any other case, be kept whitewashed or colourwashed, and the whitewashing or colourwashing shall be carried out at leastonce in every period of fourteen months;

(dd) all doors and window frames and other wooden or metallic frame work and shutters shall be kept painted or varnished and thepainting or varnishing shall be carried out at least once in every period of five years;

(e) the dates on which the processes required by clause (d) are carried out shall be entered in the prescribed register.

(2) If, in view of the nature of the operations carried on in a factory or class or description of factories or any part of a factory or classor description of factories, it is not possible for the occupier to comply with all or any of the provisions of sub-section (1), the StateGovernment may by order exempt such factory or class or description of factories or part from any of the provisions of that sub-section and specify alternative methods for keeping the factory in a clean state.

12. DISPOSAL OF WASTES AND EFFLUENTS. - (1) Effective arrangements shall be made in every factory for the treatment of wastes and effluents due to the manufacturing process carried on therein, so as to render them innocuous, and for their disposal.



(2) The State Government may make rules prescribing the arrangements to be made under sub-section (1) or requiring that thearrangements made in accordance with sub-section (1) shall be approved by such authority as may be prescribed.

13. VENTILATION AND TEMPERATURE. - (1) Effective and suitable provision shall be made in every factory for securing andmaintaining in every workroom - (a) adequate ventilation by the circulation of fresh air, and

(b) such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to health; and inparticular, - (i) walls and roofs shall be of such material and so designed that such temperature shall not be exceeded but kept as lowas practicable;

(ii) where the nature of the work carried on in the factory involves, or is likely to involve, the production of excessively hightemperatures such adequate measures as are practicable shall be taken to protect the workers therefrom, by separating the processwhich produces such temperatures from the workroom, by insulating the hot parts or by other effective means.

(2) The State Government may prescribe a standard of adequate ventilation and reasonable temperature for any factory or class or description of factories or parts thereof and direct that [ lra-48 proper measuring instruments, at such places and in such position asmay be specified, shall be provided and such records, as may be prescribed, shall be maintained;

(3) If it appears to the Chief Inspector that excessively high temperatures in any factory can be reduced by the adoption of suitablemeasures, he may, without prejudice to the rules made under sub-section (2), serve on the occupier, an order in writing specifyingthe measures which, in his opinion, should be adopted, and requiring them to be carried out before a specified date.

14. DUST AND FUME. - (1) In every factory in which, by reason of the manufacturing process carried on, there is given off any dustor fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers employedtherein, or any dust in substantial quantities, effective measures shall be taken to prevent its inhalation and accumulation in anyworkroom, and if any exhaust appliance is necessary for this purpose, it shall be applied as near as possible to the point of origin of

the dust, fume or other impurity, and such point shall be enclosed so far as possible.

(2) In any factory no stationary internal combustion engine shall be operated unless the exhaust is conducted into the open air, andno other internal combustion engine shall be operated in any room unless effective measures have been taken to prevent suchaccumulation of fumes therefrom as are likely to be injurious to workers employed in the room.

15. ARTIFICIAL HUMIDIFICATION. - (1) In respect of all factories in which the humidity of the air is artificially increased, the StateGovernment may make rules, - (a) prescribing standards of humidification;

(b) regulating the methods used for artificially increasing the humidity of the air,



(c) directing prescribed tests for determining the humidity of the air to be correctly carried out and recorded;

(d) prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the workrooms.

(2) In any factory in which the humidity of the air is artificially increased, the water used for the purpose shall be taken from a public

supply, or other source of drinking water, or shall be effectively purified before it is so used.

(3) If it appears to an Inspector that the water used in a factory for increasing humidity which is required to be effectively purifiedunder sub-section (2) is not effectively purified he may serve on the manager of the factory an order in writing, specifying themeasures which in his opinion should be adopted, and requiring them to be carried out before specified date.

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

(2) All such points shall be legibly marked "drinking water" in a language understood by a majority of the workers employed in thefactory, and no such point shall be situated within six metres of any washing place, urinal, latrine, spittoon, open drain carryingsullage or effluent or any other source of contamination unless a shorter distance is approved in writing by the Chief Inspector.

(3) In every factory wherein more than two hundred and fifty workers are ordinarily employed, provisions shall be made for coolingdrinking water during hot weather by effective means and for distribution thereof.

(4) In respect of all factories or any class or description of factories the State Government may make rules for securing compliancewith the provisions of sub-sections (1), (2) and (3) and for the examination by prescribed authorities of the supply and distribution of drinking water in factories.

19. LATRINES AND URINALS. - (1) In every factory - (a) sufficient latrine and urinal accommodation of prescribed types shall beprovided conveniently situated and accessible to workers at all times while they are at the factory;

(b) separate enclosed accommodation shall be provided for male and female workers;

(c) such accommodation shall be adequately lighted and ventilated, and no latrine or urinal shall, unless specially exempted in writingby the Chief Inspector, communicate with any workroom except through an intervening open space or ventilated passage;

(d) all such accommodation shall be maintained in a clean and sanitary condition at all times;

(e) sweepers shall be employed whose primary duty it would be to keep clean latrines, urinals and washing places.

(2) In every factory wherein more than two hundred and fifty workers are ordinarily employed - (a) all latrine and urinalaccommodation shall be of prescribed sanitary types;



(b) the floors and internal walls, up to a height of ninety centimeters, of the latrines and urinals and the sanitary blocks shall be laid inglazed titles or otherwise finished to provide a smooth polished impervious surface;

(c) without prejudice to the provisions of clauses (d) and (e) of sub-section (1), the floors, portions of the walls and blocks so laid or finished and the sanitary pans of latrines and urinals shall be thoroughly washed and cleaned at least once in every seven days with

suitable detergents or disinfectants or with both.

(3) The State Government may prescribe the number of latrines and urinals to be provided in any factory in proportion to thenumbers of male and female workers ordinarily employed therein, and provide for such further matters in respect of sanitation infactories, 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 if they 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 whilethe machinery is in motion, being an examination or operation which it is necessary to be carried out while that part of the machineryis in motion, or

(ii) in the case of any part of a transmission machinery used in such process as may be prescribed (being a process of a continuousnature the carrying on of which shall be, or is likely to be, substantially interfered with by the stoppage of that part of the machinery),it is necessary to make an examination of such part of the machinery while it is in motion or, as a result of such examination, to carryout any mounting or shipping of belts or lubrication or other adjusting operation while the machinery is in motion, and suchexamination or operation is made or carried out in accordance with the provisions of sub-section (1) of section 22.

(2) The State Government may by rules prescribe such further precautions as it may consider necessary in respect of any particular machinery or part thereof, or exempt, subject to such condition as may be prescribed, for securing the safety of the workers, anyparticular machinery or part thereof from the provisions of this section.

22. WORK ON OR NEAR MACHINERY IN MOTION. - (1) Where in any factory it becomes necessary to examine any part of machinery referred to in section 21, while the machinery is in motion, or, as a result of such examination, to carry out - (a) in a casereferred to in clause (i) of the proviso to sub-section (1) of section 21, lubrication or other adjusting operation; or

(b) in a case referred to in clause (ii) of the proviso aforesaid, any mounting or shipping of belts or lubrication or other adjusting

operation, while the machinery is in motion such examination or operation shall be made or carried out only by a specially trainedadult male worker wearing tight fitting clothing (which shall be supplied by the occupier) whose name has been recorded in theregister prescribed in this behalf and who has been furnished with a certificate of his appointment, and while he is so engaged, - (a)such worker shall not handle a belt at a moving pulley unless - (i) the belt is not more than fifteen centimeters in width;

(ii) the pulley is normally for the purpose of drive and not merely a fly-wheel or balance wheel (in which case a belt is notpermissible);

(iii) the belt joint is either laced or flush with the belt;



(iv) the belt, including the joint and the pulley rim, are in good repair;

(v) there is reasonable clearance between the pulley and any fixed plant or structure;

(vi) secure foothold and, where necessary, secure handhold, are provided for the operator; and

(vii) any ladder in use for carrying out any examination or operation aforesaid is securely fixed or lashed or is firmly held by a secondperson.

(b) without prejudice to any other provision of this Act relating to the fencing of machinery, every set screw, bolt and key on anyrevolving shaft, spindle, wheel or pinion, and all spur, worm and other toothed or friction gearing in motion with which such worker would otherwise be liable to come into contact, shall be securely fenced to prevent such contact.

(2) No woman or young person shall be allowed to clean, lubricate or adjust any part of a prime mover or of any transmissionmachinery while the prime mover or transmission machinery is in motion, or to clean, lubricate or adjust any part of any machine if the cleaning, lubrication or adjustment thereof would expose the woman or young person to risk of injury from any moving part either of that machine or of any adjacent machinery.

(3) The State Government may, by notification in the official. Gazette, prohibit, in any specified factory or class or description of factories, the cleaning, lubricating or adjusting by any person of specified parts of machinery when those parts are in motion.

23. EMPLOYMENT OF YOUNG PERSONS ON DANGEROUS MACHINES. - (1) No young person shall be required or allowed towork at any machine to which this section applies, unless he has been fully instructed as to the dangers arising in connection with themachine and the precautions to be observed and - (a) has received sufficient training in work at the machine, or

(b) is under adequate supervision by a person who has a thorough knowledge and experience of the machine. (2) Sub-section (1)

shall apply to such machines as may be prescribed by the State Government, being machines which in its opinion are of such adangerous character that young persons ought not to work at them unless the foregoing requirements are complied with.

24. STRIKING GEAR AND DEVICES FOR CUTTING OFF POWER. - (1) In every factory - (a) suitable striking gear or other efficientmechanical appliance shall be provided and maintained and used to move driving belts to and from fast and loose pulleys which formpart of the transmission machinery, such gear or appliances shall be so constructed, placed and maintained as to prevent the beltfrom creeping back on to the fast pulley;

(b) driving belts when not in use shall not be allowed to rest or ride upon shafting in motion.



(2) In every factory suitable devices for cutting off power in emergencies from running machinery shall be provided and maintained inevery work-room:

Provided that in respect of factories in operation before the commencement of this Act, the provisions of this sub-section shall applyonly to work-rooms in which electricity is used as power.

(3) When a device, which can inadvertently shift from "off" to "on" position, is provided in a factory to cut off power, arrangementsshall be provided for locking the device in safe position to prevent accidental starting of the transmission machinery or other machines to which the device is fitted.

25. SELF-ACTING MACHINES. - No traversing part of a self-acting machine in any factory and no material carried thereon shall, if the space over which it runs is a space over which any person is liable to pass, whether in the course of his employment or otherwise, be allowed to run on its outward or inward traverse within a distance of forty-five centimeters from any fixed structurewhich is not part of the machine :

Provided that the Chief Inspector may permit the continued use of a machine installed before the commencement of this Act whichdoes not comply with the requirements of this section on such conditions for ensuring safety as he may think fit to impose.

26. CASING OF NEW MACHINERY. - (1) In all machinery driven by power and installed in any factory after the commencement of this Act, - (a) every set screw, bolt or key on any revolving shaft, spindle, wheel pinion shall be so sunk, encased or otherwiseeffectively guarded as to prevent danger;

(b) all spur, worm and other toothed or friction gearing which does not require frequent adjustment while in motion shall becompletely encased, unless it is so situated as to be as safe as it would be if it were completely encased.

(2) Whoever sells or lets on hire or, as agent of a seller or hirer, causes or procures to be sold on let or hire, for use in a factory any

machinery driven by power which does not comply with the provisions of Sub-section (1) or any rules made under sub-section (3),shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to five hundredrupees or with both.

(3) The State Government may make rules specifying further safeguards to be provided in respect of any other dangerous part of anyparticular machine or class or description of machines.

27. PROHIBITION OF EMPLOYMENT OF WOMEN AND CHILDREN NEAR COTTON-OPENERS. - No woman or child shall beemployed in any part of a factory for pressing cotton in which a cotton-opener is at work :



Provided that if the feed-end of a cotton-opener is in a room separated from the delivery end by a partition extending to the roof or tosuch height as the Inspector may in any particular case specify in writing, women and children may be employed on the side of thepartition where the feed-end is situated.

28. HOISTS AND LIFTS. - (1) In every factory - (a) every hoist and lift shall be - (i) of good mechanical construction, sound material

and adequate strength;

(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 alanding;

(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 of breakage 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 to

enforce any requirement of sub-sections. (1) and (2), by order direct that such requirement shall not apply to such class or description of hoist or lift.

Explanation : For the purposes of this section, no lifting machine or appliance shall be deemed to be a hoist or lift unless it has aplatform or cage, the direction or movement of which is restricted by a guide or guides.

29. LIFTING MACHINES, CHAINS, ROPES AND LIFTING TACKLES. - (1) In any factory the following provisions shall be compliedwith in respect of every lifting machine (other than a hoist and lift) and every chain, rope and lifting tackle for the purpose of raising or lowering persons, goods or materials :- (a) all parts, including the working gear, whether fixed or movable, of every lifting machineand every chain, rope or lifting tackle shall be - (i) of good construction, sound material and adequate strength and free from defects;

(ii) properly maintained; and

(iii) thoroughly examined by a competent person at least once in every period of twelve months, or at such intervals as the Chief Inspector may specify in writing, and a register shall be kept containing the prescribed particulars of every such examination;

(b) no lifting machine and no chain, rope or lifting tackle shall, except for the purpose of test, be loaded beyond the safe working loadwhich shall be plainly marked thereon together with an identification mark and duly entered in the prescribed register, and where thisis not practicable, a table showing the safe working loads of every kind and size of lifting machine or, chain, rope or lifting tackle inuse shall be displayed in prominent positions on the premises;

(c) while any person is employed or working on or near the wheel track of a travelling crane in any place where he would be liable tobe struck by the crane, effective measures shall be taken to ensure that the crane does not approach within [ lra-66 six metres lra-66 ] of that place.

(2) The State Government may make rules in respect of any lifting machine or any chain, rope or lifting tackle used in factories - (a)prescribing further requirements to be complied with in addition to those set out in this section;

(b) providing for exemption from compliance with all or any of the requirements of this section, where in its opinion, such complianceis unnecessary or impracticable.



(3) For the purposes of this section a lifting machine or a chain, rope or lifting tackle shall be deemed to have been thoroughlyexamined if a visual examination supplemented, if necessary, by other means and by the dismantling of parts of the gear, has beencarried out as carefully as the conditions permit in order to arrive at a reliable conclusion as to the safety of the parts examined.Explanation : In this section, - (a) "lifting machine" means a crane, crab, winch, teagle, pulley block, gin wheel, transporter or runway;

(b) "lifting tackle" means any chain, sling, rope sling, hook, shackle, swivel, coupling, socket, clamp, tray or similar appliance, whether fixed or movable, used in connection

30. REVOLVING MACHINERY. - (1) In every factory in which the process of grinding is carried on there shall be permanently affixedto or placed near each machine in use a notice indicating the maximum safe working peripheral speed of every grindstone or abrasive wheel, the speed of the shaft or spindle upon which the wheel is mounted, and the diameter of the pulley upon such shaft or spindle necessary to secure such safe working peripheral speed.

(2) The speeds indicated in notices under sub-section (1) shall not be exceeded.

(3) Effective measures shall be taken in every factory to ensure that the safe working peripheral speed of every revolving vessel,

cage, basket, flywheel, pulley, disc or similar appliance driven by power is not exceeded.

31. PRESSURE PLANT. - (1) If in any factory, any plant or machinery or any part thereof is operated at a pressure aboveatmospheric pressure, effective measures shall be taken to ensure that the safe working pressure of such plant or machinery or partis not exceeded.

(2) The State Government may make rules providing for the examination and testing of any plant or machinery such as is referred toin sub-section (1) and prescribing such other safety measures in relation thereto as may in its opinion be necessary in any factory or class or description of factories.

(3) The State Government may, by rules, exempt, subject to such conditions as may be specified therein, any part of any plant or machinery referred to in sub-section (1) from the provisions of this section.

32. FLOORS, STAIRS AND MEANS OF ACCESS. - In every factory - (a) all floors, steps, stairs, passages and gangways shall beof sound construction and properly maintained and shall be kept free from obstructions and substances likely to cause persons toslip, and where it is necessary to ensure safety, steps, stairs, passages and gangways shall be provided with substantial handrails;

(b) there shall, so far as is reasonably practicable, be provided and maintained safe means of access to every place at which anyperson is at any time required to work.



(c) when any person has to work at a height from where he is likely to fall, provision shall be made, so far as is reasonablypracticable, by fencing or otherwise, to ensure the safety of the person so working.

33. PITS, SUMPS, OPENINGS IN FLOORS, ETC. - (1) In every factory fixed vessel, sump, tank, pit or opening in the ground or in afloor which, by reasons of its depth, situation, construction or contents, is or may be a source of danger, shall be either securely

covered or securely fenced.

(2) The State Government may, by order in writing, exempt, subject to such conditions as may be prescribed, any factory or class or description of factories in respect of any vessel, sump, tank, pit or opening from compliance with the provisions of this section.

34. EXCESSIVE WEIGHTS. - (1) No person shall be employed in any factory to lift, carry or move any load so heavy as to be likelyto cause him injury.

(2) The State Government may make rules prescribing the maximum weights which may be lifted, carried or moved by adult men,adult women, adolescents and children employed in factories or in any class or description of factories or in carrying on any specifiedprocess.

35. PROTECTION OF EYES. - In respect of any such manufacturing process carried on in any factory as may be prescribed, being aprocess which involves - (a) risk of injury to the eyes from particles or fragments thrown off in the course of the process, or

(b) risk to the eyes by reason of exposure to excessive light, the State Government may by rules require that effective screens or suitable goggles shall be provided for the protection of persons employed on, or in the immediate vicinity of, the process.

36. PRECAUTIONS AGAINST DANGEROUS FUMES, GASES, ETC. - (1) No person shall be required or allowed to enter anychamber, tank, vat, pit, pipe, flue or other confined space in any factory in which any gas, fume, vapour or dust is likely to be presentto such an extent as to involve risk to persons being overcome thereby, unless it is provided with a manhole of adequate size or

other effective means of egress.

(2) No person shall be required or allowed to enter any confined space as is referred to in sub-section (1), until all practicablemeasures have been taken to remove any gas, fume, vapour or dust, which may be present so as to bring its level within thepermissible limits and to prevent any ingress of such gas, fume, vapour or dust and unless - (a) a certificate in writing has been givenby a competent person, based on a test carried out by himself that the space is reasonably free from dangerous gas, fume, vapour or dust; or

(b) such person is wearing suitable breathing apparatus and a belt securely attached to a rope the free end of which is held by aperson outside the confined space.





non-inflammable, and no such substance shall be allowed to enter such plant, tank or vessel after any such operation until the metalhas cooled sufficiently to prevent any risk of igniting the substance.

(5) The State Government may by rules exempt, subject to such conditions as may be prescribed, any factory or class or descriptionof factories from compliance with all or any of the provisions of this section.

38. PRECAUTIONS IN CASE OF FIRE. - (1) In every factory, all practicable measures shall be taken to prevent outbreak of fire andits spread, both internally and externally, and to provide and maintain - (a) safe means of escape for all persons in the event of a fire,and (b) the necessary equipment and facilities for extinguishing fire.

(2) Effective measures shall be taken to ensure that in every factory all the workers are familiar with the means of escape in case of fire and have been adequately trained in the routine to be followed in such cases.

(3) The State Government may make rules, in respect of any factory or class or description of factories, requiring the measures to beadopted to give effect to the provisions of sub-sections (1) and (2).

(4) Notwithstanding anything contained in clause (a) of sub-section (1) or sub-section (2), if the Chief Inspector, having regard to thenature of the work carried on in any factory, the construction of such factory, special risk to life or safety, or any other circumstances,is of the opinion that the measures provided in the factory, whether as prescribed or not, for the purposes of clause (a) of sub-section(1) or sub-section (2), are inadequate, he may, by, order in writing, require that such additional measures as he may consider reasonable and necessary, be provided in the factory before such date as is specified in the order.

39. POWER TO REQUIRE SPECIFICATIONS OF DEFECTIVE PARTS OR TESTS OF STABILITY. - If it appears to the Inspector that any building or part of a building or any part of the ways, machinery or plant in a factory is in such a condition that it may bedangerous to human life or safety, he may serve on the occupier or manager or both of the factory an order in writing requiring himbefore a specified date - (a) to furnish such drawings, specifications and other particulars as may be necessary to determine whether such building, ways, machinery or plant can be used with safety, or

(b) to carry out such test in such manner as may be specified in the order, and to inform the Inspector of the results thereof.

40. SAFETY OF BUILDINGS AND MACHINERY. - (1) If it appears to the Inspector that any building or part of a building or any partof the ways, machinery or plant in a factory is in such a condition that it is dangerous to human life or safety, he may serve on theoccupier or manager or both of the factory an order in writing specifying the measures which in his opinion should be adopted, andrequiring them to be carried out before a specified date.



(2) If it appears to the Inspector that the use of any building or part of a building or any part of the ways, machinery or plant in afactory involves imminent danger to human life or safety, he may serve on the occupier or manager or both of the factory an order inwriting prohibiting its use until it has been properly repaired or altered.

40A. MAINTENANCE OF BUILDINGS. - If it appears to the Inspector that any building or part of a building in a factory is in such a

state of disrepair as is likely to lead to conditions detrimental to the health and welfare of the workers, he may serve on the occupier 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 or operation 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 of Safety 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 StateGovernment.

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 or description of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during workinghours 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.

(2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in a particular manufacturing process or working in a

particular room are able to do their work efficiently in a sitting position, he may, by order in writing, require the occupier of the factoryto provide before a specified date such seating arrangements as may be practicable for all workers so engaged or working.

(3) The State Government may, by notification in the Official Gazette, declare that the provisions of sub-section (1) shall not apply toany specified factory or class or description of factories or to any specified manufacturing process.

45. FIRST AID APPLIANCES. - (1) There shall in every factory be provided and maintained so as to be readily accessible during allworking hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to beprovided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed at any one time inthe factory.

(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.

(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person who holds a certificate in first-aidtreatment recognized by State Government and who shall always be readily available during the working hours of the factory.

(4) In every factory wherein more than five hundred workers are ordinarily employed there shall be provided and maintained anambulance room of the prescribed size, containing the prescribed equipment and in the charge of such medical and nursing staff asmay be prescribed and those facilities shall always be made readily available during the working hours of the factory.

46. CANTEENS. - (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred

and, fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of theworkers.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for - (a) the date by which such canteen shallbe provided;

(b) the standards in respect of construction, accommodation, furniture and other equipment of the canteen;

(c) the foodstuffs to be served therein and the charges which may be made therefor;



(d) the constitution of a managing committee for the canteen and representation of the workers in the management of the canteen;

(dd) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs andwhich shall be borne by the employer;

(e) the delegation to the Chief Inspector, subject to such conditions as may be prescribed, of the power to make rules under clause(c).

47. SHELTERS, REST ROOMS AND LUNCH ROOMS. - (1) In every factory wherein more than one hundred and fifty workers areordinarily employed, adequate and suitable shelters or rest rooms and a suitable lunch room, with provision for drinking water, whereworkers can eat meals brought by them, shall be provided and maintained for the use of the workers : Provided that any canteenmaintained in accordance with the provisions of section 46 shall be regarded as part of the requirements of this sub-section :Provided further that where a lunch room exists no workers shall eat any food in the work room.

(2) The shelters or rest rooms or lunch rooms to be provided under sub-section (1) shall be sufficiently lighted and ventilated andshall be maintained in a cool and clean condition.

(3) The State Government may - (a) prescribe the standards in respect of construction, accommodation, furniture and other equipment of shelters, rest rooms and lunch rooms to be provided under this section;

(b) by notification in the Official Gazette, exempt any factory or class or description of factories from the requirements of this section.

48. CRECHES. - (1) In every factory wherein more than thirty women workers are ordinarily employed there shall be provided andmaintained a suitable room or rooms for the use of children under the age of six years of such women.

(2) Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean

and sanitary condition and shall be under the charge of women trained in the care of children and infants.

(3) The State Government may make rules - (a) prescribing the location and the standards in respect of construction,accommodation, furniture and other equipment of rooms to be provided, under this section;

(b) requiring the provision in factories to which this section applies of additional facilities for the care of children belonging to womenworkers, including suitable provision of facilities for washing and changing their clothing;

(c) requiring the provision in any factory of free milk or refreshment or both for such children;



(d) requiring that facilities shall be given in any factory for the mothers of such children to feed them at the necessary intervals.

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



were due to him or within the two months immediately following that month, compensatory holidays of equal number to the holidaysso lost.

(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 for more 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 anhour.

(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, for reasons 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 soarranged 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 or any department or section of a factory or any category or description of workers therein from the provisions of sub-section (1).

59. EXTRA WAGES FOR OVERTIME. - (1) Where a worker works in a factory for more than nine hours in any day or for more than

forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages.

(2) For the purposes of sub-section (1), "ordinary rate of wages" means the basic wages plus such allowances, including the cashequivalent of the advantage accruing through the concessional sale to workers of foodgrains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work.

(3) Where any workers in a factory are paid on a piece-rate basis, the time rate shall be deemed to be equivalent to the daily averageof their full-time earnings for the days on which they actually worked on the same or identical job during the month immediatelypreceding the calendar month during which the overtime work was done, and such time rates shall be deemed to be the ordinaryrates of wages of those workers :

Provided that in the case of a worker who has not worked in the immediately preceding calendar month on the same or identical job,the time rate shall be deemed to be equivalent to the daily average of the earnings of the worker for the days on which he actuallyworked in the week in which the overtime work was done.

Explanation : For the purposes of this sub-section, in computing the earnings for the days on which the worker actually worked suchallowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of foodgrains andother articles, as the worker is for the time being entitled to, shall be included but any bonus or wages for overtime work payable inrelation to the period with reference to which the earnings are being computed shall be excluded.

(4) The cash equivalent of the advantage accruing through the concessional sale to a worker of foodgrains and other articles shall becomputed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to astandard family.

Explanation 1 : Standard family means a family consisting of the worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.

Explanation 2 : Adult consumption unit means the consumption unit of a male above the age of fourteen years; and the consumptionunit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult consumption unit.



(5) The State Government may make rules prescribing - (a) the manner in which the cash equivalent of the advantage accruingthrough the concessional sale to a worker of foodgrains and other articles shall be computed; and

(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 dayon 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 suchmuster 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 in

the 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 thanfour 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.

(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 permission

in 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 register of 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.

Explanation 1 : For the purpose of this sub-section - (a) any days of lay off, by agreement or contract or as permissible under thestanding orders;

(b) in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and

(c) the leave earned in the year prior to that in which the leave is enjoyed; shall be deemed to be days on which the worker hasworked in a factory for the purpose of computation of the period of 240 days or more, but he shall not earn leave for these days.

Explanation 2 : The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

(2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the ratelaid down in clause (i) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of daysin the remainder of the calender year.

(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, duringthe course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or deathcalculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made - (i) where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal or quitting,and

(ii) where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuationor death.

(4) In calculating leave under this section, fraction of leave of half a day or more shall be treated as one full day's leave, and fractionof less than half a day shall be omitted.

(5) If a worker does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub-section (2),as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year :



Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child :

Provided further that a worker, who has applied for leave with wages but has not been given such leave in accordance with anyscheme laid down in sub-sections (8) and (9) or in contravention of sub-section (10) shall be entitled to carry forward the leave

refused without any limit.

(6) A worker may at any time apply in writing to the manager of a factory not less than fifteen days before the date on which hewishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year :

Provided that the application shall be made not less than thirty days before the date on which the worker wishes his leave to begin, if he is employed in a public utility service as defined in clause (n) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947) :

Provided further that the number of times in which leave may be taken during any year shall not exceed three.

(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of illness, he shall be granted such leave

even if the application for leave is not made within the time specified in sub-section (6); and in such a case wages as admissibleunder section 81 shall be paid not later than fifteen days, or in the case of a public utility service not later than thirty days from thedate of the application for leave.

(8) For the purpose of ensuring the continuity of work, the occupier or manager of the factory, in agreement with the WorksCommittee of the factory constituted under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or a similar Committeeconstituted under any other Act or if there is no such Works Committee or a similar Committee in the factory, in agreement with therepresentatives of the workers therein chosen in the prescribed manner, may lodge with the Chief Inspector a scheme in writingwhereby the grant of leave allowable under this section may be regulated.

(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and convenient places in the factory and shall bein force for a period of twelve months from the date on which it comes into force, and may thereafter be renewed with or withoutmodification for a further period of twelve months at a time, by the manager in agreement with the Works Committee or a similar Committee, or as the case may be, in agreement with the representatives of the workers as specified in sub-section (8), and a noticeof renewal shall be sent to the Chief Inspector before it is renewed.

(10) An application for leave which does not contravene the provisions of sub-section (6) shall not be refused, unless refusal is inaccordance with the scheme for the time being in operation under sub-sections (8) and (9).



(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, isterminated by the occupier before he has taken the entire leave to which he is entitled, or if having applied for and having not beengranted such leave, the worker quits his employment before he has taken the leave, the occupier of the factory shall pay him theamount payable under section 80 in respect of the leave not taken, and such payment shall be made, where the employment of theworker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who

quits his employment, on or before the next pay day.

(12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be givenbefore discharge or dismissal.

80. WAGES DURING LEAVE PERIOD. - (1) For the leave allowed to him under section 78 or section 79, as the case may be aworker shall be entitled to wages at a rate equal to the daily average of his total full time earnings for the days on which he actuallyworked during the month immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowanceand the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles :

Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he

shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the lastcalendar month preceding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearnessallowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.

(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shallbe computed as often as may be prescribed, on the basis of the maximum quantity of foodgrains and other articles admissible to astandard family.

Explanation 1 : "Standard family" means a family consisting of a worker, his or her spouse and two children below the age of fourteenyears requiring in all three adult consumption units.

Explanation 2 : Adult consumption unit means the consumption unit of a male above the age of fourteen years; and the consumptionunit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult consumption unit.

(3) The State Government may make rules prescribing - (a) the manner in which the cash equivalent of the advantage accruingthrough the concessional sale to a worker of foodgrains and other articles shall be computed; and

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



3] Payment of Bonus Act, 1965.

(2) It extends to the whole of India 2[***].

(3) Save as otherwise provided in this Act, 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, bynotification 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 thisAct 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 of establishments 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 year

commencing 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 of persons 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)].

2. Definitions



In this Act, unless the context otherwise requires,

(7) "award" means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947 (14 of 1947), or by any other

authority constituted under any corresponding law relating to investigation and settlement of industrial disputes in force in a State andincludes an arbitration award made under section 10A of that Act or under that law;

(8) "banking company" means a banking company as defined in section 5 of the Banking Companies Act, 1949 (10 of 1949), andincludes the State Bank of India, any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), 3[any corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970)], 6[any corresponding new bank constituted under section 3 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980)], any co-operative bank as defined in clause (bii) of section 2 of theReserve Bank of India Act, 1934 (2 of 1934) and any other banking institution which may be notified in this behalf by the CentralGovernment;

(9) "company" means any company as defined in section 3 of the Companies Act, 1956 (1 of 1956) and includes a foreign companywithin the meaning of section 591 of that Act;

(10) "co-operative society " means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912), or any other law for time being in force in any State relating to co-operative societies;

(13) "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding 7[three thousand andfive hundred rupees] per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative,technical or clerical work for hire or reward, whether the terms of employment be express or implied;

(17) "factory" shall have the same meaning as in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);

(21) "salary or wages " means all remuneration (other than remuneration in respect of over-time work) capable of being expressed interms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, bywhatever name called, paid to an employee on account of a rise in the cost of living), but does not include,-

(i) any other allowance which the employee is for the time being entitled to;

(ii) the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of



any 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 under any 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 or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part

of the salary or wages of such employee;

3. Establishments to include departments, undertakings and branchesWhere 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 of

computation of bonus.

8. Eligibility for bonusEvery employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of thisAct, provided he has worked in the establishment for not less than thirty working days in that year.



9. Disqualification for bonusNotwithstanding 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[10. Payment of minimum bonusSubject 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 of this 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.

(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15

shall 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 -

[Clause (a) omitted w.e.f. 1-6-1959.]

(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

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

minor 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 by

the 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 of a 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 capable

of 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 persondeclared by the State Government by notification in the Official Gazette to be a qualified medical practitioner for the purpose of thisAct;

[Clause (j) omitted by Act 15 of 1933]

(k) "seaman" means any person forming part of the crew of any ship but does not include the master of the ship;

(l) "total disablement" means such disablement whether of a temporary or permanent nature as incapacitates a workman for all workwhich he was capable of performing at the time of the accident resulting in such disablement :



Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of Schedule I or from anycombination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity as specified in thesaid Part II against those injuries amount to one hundred per cent or more;

(m) "wages" includes any privilege or benefit which is capable of being estimated in money other than a travelling allowance or the

value of any travelling concession or a contribution paid by the employer of a workman towards any pension or provident fund or asum paid to a workman to cover any special expenses entailed on him by the nature of his employment;

(n) "workman" means any person (other than a person whose employment is of a casual nature and who is employed otherwise thanfor the purposes of the employer's trade or business) who is -

(i) a railway servant as defined in Section 3 of the Indian Railways Act 1890 (9 of 1890) not permanently employed in anyadministrative district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II or

(ia)(a) a master seaman or other member of the crew of a ship.

(b) a captain or other member of the crew of an aircraft

(c) a person recruited as driver helper mechanic cleaner or in any other capacity in connection with a motor vehicle

(d) a person recruited for work abroad by a company and who is employed outside India in any such capacity as is specified inSchedule II and the ship aircraft or motor vehicle or company as the case may be is registered in India or;

(ii) employed in any such capacity as is specified in Schedule II whether the contract of employment was made before or after thepassing of this Act and whether the contract is expressed or implied oral or in writing; but does not include any person working in thecapacity of a member of the Armed Forces of the Union; and any reference to a workman who has been injured shall where theworkman is dead includes a reference to his dependants or any of them.

(2) The exercise and performance of the powers and duties of a local authority or of any department acting on behalf of theGovernment shall for the purposes of this Act unless a contrary intention appears be deemed to be the trade or business of suchauthority or department.

(3) The Central Government or the State Government after giving by notification in the Official Gazette not less than three months'notice of its intention so to do may by a like notification add to Schedule II any class of persons employed in any occupation which itis satisfied is a hazardous occupation and the provisions of this Act shall thereupon apply in case of notification by the Central



Government within the territories to which the Act extends or in the case of a notification by a State Government within the State tosuch classes of persons :

Provided that in making addition the Central Government or the State Government as the case may be may direct that the provisionsof this Act shall apply to such classes of persons in respect of specified injuries only.

CHAPTER II. WORKMEN'S COMPENSATION

3. Employer's liability for compensation

(1) If personal injury is caused to a workman by accident arising out of and in the course of his employment his employer shall beliable to pay compensation in accordance with the provisions of this Chapter :

Provided that the employer shall not be so liable -

(a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding three days;

(b) in respect of any injury not resulting in death or permanent total disablement caused by an accident which is directly attributableto -

the workman having been at the time thereof under the influence of drink or drugs or the wilful disobedience of the workman to anorder expressly given or to a rule expressly framed for the purpose of securing the safety of workmen or the wilful removal or disregard by the workman of any safety guard or other device he knew to have been provided for the purpose of securing the safetyof workman. (2) If a workman employed in any employment specified in Part A of Schedule III contracts any disease specified thereinas an occupational disease peculiar to that employment or if a workman whilst in the service of an employer in whose service he hasbeen employed for a continuous period of not less than six months (which period shall not include a period of service under any other employer in the same kind of employment) in any employment specified in Part B of Schedule III contracts any disease specifiedtherein as an occupational disease peculiar to that employment or if a workman whilst in the service of one or more employers in anyemployment specified in Part C of Schedule III for such continuous period as the Central Government may specify in respect of eachsuch employment contracts any disease specified therein as an occupational disease peculiar to that employment the contracting of the disease shall be deemed to be as injury by accident within the meaning of this section and unless the contrary is proved theaccident shall be deemed to have arisen out of and in the course of the employment :

Provided that if it proved -



that a workman whilst in the service of one or more employers in any employment specified in Part C of Schedule III has contracted adisease specified therein as an occupational disease peculiar to that employment during a continuous period which is less than theperiod specified under this sub-section for that employment; and that the disease has arisen out of and in the course of theemployment the contracting of such disease shall be deemed to be an injury by accident within the meaning of this section : Providedfurther that if it is proved that a workman who having served under any employer in any employment specified in Part B of Schedule

III or who having served under one or more employers in any employment specified in Part C of that Schedule for a continuousperiod specified under this sub-section for that employment and he has after the cessation of such service contracted any diseasespecified in the said Part B or the said Part C as the case may be as an occupational disease peculiar to the employment and thatsuch disease arose out of the employment the contracting of the disease shall be deemed to be injury by accident within the meaningof this section.

(2A) If a workman employed in any employment specified in Part C of Schedule III contracts any occupational disease peculiar tothat employment the contracting whereof is deemed to be an injury by accident within the meaning of this section and suchemployment was under more than one employer all such employers shall be liable for the payment of the compensation in suchproportion as the Commissioner may in the circumstances deem just.

(3) The Central Government or the State Government after giving by notification in the Official Gazette not less than three months'notice of its intention so to do may by a like notification add any description of employment to the employments specified in ScheduleIII and shall specify in the case of employments so added the diseases which shall be deemed for the purposes of this section to beoccupational diseases peculiar to those employments respectively and thereupon the provisions of sub-section (2) shall apply in thecase of a notification by the Central Government within the territories to which this Act extends or in case of and notification by theState Government within the State as if such diseases had been declared by this Act to be occupational diseases peculiar to thoseemployments.

Save as provided by sub-sections (2), (2A) and (3) no compensation shall be payable to a workman in respect of any disease unlessthe disease is directly attributable to a specific injury by accident arising out of and in the course of his employment. Nothing hereincontained shall be deemed to confer any right to compensation on a workman in respect of any injury if he has instituted in a civil

court a suit for damages in respect of the injury against the employer or any other person; and no suit for damages shall bemaintainable by a workman in any court of law in respect of any injury - (a) if he has instituted a claim to compensation in respect of the injury before a Commissioner; or

(b) if an agreement has been come to between the workman and his employer providing for the payment of compensation in respectof the injury in accordance with the provisions of this Act.

4. Amount of compensation



(1) Subject to the provisions of this Act the amount of compensation shall be as follows namely :-

where death results from the injury an amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by therelevant factor; or an amount of fifty thousand rupees whichever is more; where permanent total disablement results from the injuryan amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor; or an amount of sixty

thousand rupees whichever is more. Explanation I : For the purpose of clause (a) and clause (b) relevant factor in relation to aworkman means the factor specified in the second column of Schedule IV against the entry in the fits column of that Schedulespecifying the number of years which are the same as the completed years of the age of the workman on his birthday immediatelypreceding the date on which the compensation fell due;

Explanation II : Where the monthly wages of a workman exceed two thousand rupees his monthly wages for the purposes of clause(a) and clause (b) shall be deemed to be two thousand rupees only;

(c) where permanent partial disablement results from the injury

in the case of an injury specified in Part II of Schedule I such percentage of the compensation which would have been payable in the

case of permanent total disablement as is specified therein as being the percentage of the lass of earning capacity caused by thatinjury; and in the case of an injury specified in Schedule I such percentage of the compensation payable in the case of permanenttotal disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanentlycaused by the injury; Explanation I : Where more injuries than one are caused by the same accident the amount of compensationpayable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.

Explanation II : In assessing the loss of earning capacity for the purpose of sub-clause (ii) the qualified medical practitioner shall havedue regard to the percentages of loss of earning capacity in relation to different injuries specified in Schedule I;

(d) where temporary disablement whether total or partial results from the injury a half monthly payment of the sum equivalent to

twentyfive per cent of monthly wages of the workman to be paid in accordance with the provisions of sub-section (2).

(1A) Notwithstanding anything contained in sub-section (1) while fixing the amount of compensation payable to a workman in respectof an accident occurred outside India the Commissioner shall take into account the amount of compensation if any awarded to suchworkman in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by the amountof compensation awarded to the workman in accordance with the law of that country.

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the sixteenth day -



from the date of disablement where such disablement lasts for a period of twenty-eight days or more or after the expiry of a waitingperiod of three days from the date of disablement where such disablement lasts for a period of less than twenty-eight days; andthereafter half-monthly during the disablement or during a period of five years whichever period is shorter : Provided that -

there shall be deducted from any lump sum or half monthly payments to which the workman is entitled the amount of any payment or

allowance which the workman has received from the employer by way of compensation during the period of disablement prior to thereceipt of such lump sum or of the first half monthly payment as the case may be; and no half monthly payment shall in any caseexceed the amount if any by which half the amount of the monthly wages of the workman before the accident exceeds half theamount of such wages which he is earning after the accident. Explanation : Any payment or allowance which the workmen hasreceived from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him byway of compensation within the meaning of clause (a) of the proviso.

On the ceasing of the disablement before the date on which any half monthly payment falls due there shall be payable in respect of that half monthly a sum proportionate to the duration of the disablement in that half month. If the injury of the workman results in hisdeath the employer shall in addition to the compensation under sub-section (1) deposit with the Commissioner a sum of onethousand rupees for payment of the same of the eldest surviving dependant of the workman towards the expenditure of the funeral of

such workman or where the workman did not have a dependant or was not living with his dependant at the time of his death to theperson who actually incurred such expenditure. 4A. Compensation to be paid when due and penalty for default Compensation under section 4 shall be paid as soon as it falls due. (2) In cases where the employer does not accept the liability for compensation to theextent claimed he shall be bound to make provisional payment based on the extent of liability which he accepts and such paymentshall be deposited with the Commissioner or made to the workman as the case may be without prejudice to the right of the workmanto make any further claim.

direct that the employer shall in addition to the amount of the arrears pay simple interest thereon at the rate of twelve per cent annumor at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the CentralGovernment by notification in the Official Gazette on the amount due; and if in his opinion there is no jurisdiction for the delay directthat the employer shall in addition to the amount of the arrears and interest thereon pay a further sum not exceeding fifty per cent of

such amount by way of penalty : Provided that an order for the payment of penalty shall not be passed under clause (b) withoutgiving a reasonable opportunity to the employer to shoe cause why it should not be passed.

Explanation : For the purposes of this sub-section "scheduled bank" means a bank for the time being included in the SecondSchedule to the Reserve Bank of India Act 1934 (2 of 1934

(3A) The interest payable under sub-section (3) shall be paid to the workman or his dependant as the case may be and the penaltyshall be credited to the State Government.



Method of calculating wages In this Act and for the purpose thereof the expression "monthly wages" means the amount of wagesdeemed to be payable for a months' service (whether the wages are payable by the month or by whatever other period or at piecerates) and calculated as follows namely :-

where the workman has during a continuous period of not less than twelve months immediately preceding the accident been in the

service of the employer who is liable to pay compensation the monthly wages of the workman shall be one-twelfth of the total wageswhich have fallen due for payment to him by the employer in the last twelve months of that period; where the whole of the continuousperiod of service immediately preceding the accident during which the workman was in the service of the employer who is liable topay the compensation was less than one month the monthly wages of the workman shall be the average monthly amount whichduring the twelve months immediately preceding the accident was being earned by a workman employed on the same work by thesame employer or if there was no workman so employed by a workman employed on similar work in the same locality; in other casesincluding cases in which it is not possible for want of necessary information to calculate the monthly wages under clause (b) themonthly wages shall be thirty times the total wages earned in respect of the last continuous period of service immediately precedingthe accident from the employer who is liable to pay compensation divided by the number of days comprising such period.

Explanation : A period of service shall for the purposes of this section be deemed to be continuous which has not been interrupted by

a period of absence from work exceeding fourteen days.

6. Review Any half-monthly payment payable under this Act either under an agreement between the parties or under the order of a Commissioner may be reviewed by the Commissioner on the application either of the employer or of the workman accompanied bythe certificate of a qualified medical practitioner that there has been a change in the condition of the workman or subject to rulesmade under this Act on application made without such certificate. (2) Any half-monthly payment may on review under this sectionsubject to the provisions of this Act be continued increased decreased or ended or if the accident is found to have resulted inpermanent disablement be converted to the lump sum to which the workman is entitled less any amount which he has alreadyreceived by way of half-monthly payments.

7. Commutation of half-monthly payments Any right to receive half-monthly payments may by agreement between the parties or if

the parties cannot agree and the payments have been continued for not less than six months on the application of either party to theCommissioner be redeemed by the payment of a lump sum of such amount as may be agreed to by the parties or determined by theCommissioner as the case may be.

8. Distribution of compensation (1) No payment of compensation in respect of a workman whose injury has resulted in death andno payment of a lump sum as compensation to a woman or a person under a legal disability shall be made otherwise than by depositwith the Commissioner and no such payment directly by an employer shall be deemed to be a payment of compensation :



Provided that in the case of a deceased workman an employer may make to any dependant advances on account of compensationof an amount equal to three months' wages of such workman and so much of such amount as does not exceed the compensationpayable to that dependant shall be deducted by the Commissioner from such compensation and repaid to the employer.

Any other sum amounting to not less than ten rupees which is payable as compensation may be deposited with the Commissioner on

behalf of the person entitled thereto. The receipt of the Commissioner shall be a sufficient discharge in respect of any compensationdeposited with him. On the deposit of any money under sub-section (1) as compensation in respect of a deceased workman theCommissioner shall if he thinks necessary cause notice to be published or to be served on each dependant in such manner as hethinks fit calling upon the dependants to appear before him on such dates as he may fix for determining the distribution of thecompensation. If the Commissioner is satisfied after any inquiry which he may deem necessary that no dependant exists he shallrepay the balance of the money to the employer by whom it was paid. The Commissioner shall on application by the employer furnisha statement showing in detail all disbursements made. Compensation deposited in respect of a deceased workman shall subject toany deduction made under sub-section (4) be apportioned among the dependants of the deceased workman or any of them in suchproportion as the Commissioner thinks fit or may in the desecration of the Commissioner be allotted to any one dependant. Whereany compensation deposited with the Commissioner is payable to any person the Commissioner shall if the person to whom thecompensation is payable is not a woman or a person under a legal disability and may in other cases pay the money to the person

entitled thereto. Where any lump sum deposited with the Commissioner is payable to a woman or a person under a legal disabilitysuch sum may be invested applied or otherwise dealt with for the benefit of the woman or of such person during his disability in suchmanner as the Commissioner may direct; and where a half-monthly payment is payable to any person under a legal disability theCommissioner may of his own motion or on an application made to him in this behalf order that the payment be made during thedisability to any dependant of the workman or to any other person whom the Commissioner thinks best fitted to provide for thewelfare of the workman. Where on application made to him in this behalf or otherwise the Commissioner is satisfied that on accountof neglect of children on the part of a parent or on account of the variation of the circumstances of any dependant of for any other sufficient cause an order of the Commissioner as to the distribution of any sum paid as compensation or as to the manner in whichany sum payable to any such dependant is to be invested applied or otherwise dealt with ought to be varied the Commissioner maymake such order for the variation of the former order as he thinks just in the circumstances of the case :

Provided that no such order prejudicial to any person shall be made unless such person has been given an opportunity of showingcause why the order should not be made or shall be made in and case in which it would involve the repayment by a dependant of any sum already paid to him.

(9) Where the Commissioner varies any order under sub-section (8) by reason of the fact that payment of compensation to anyperson has been obtained by fraud impersonation or other improper means any amount so paid to or on behalf of such person maybe recovered in the manner hereinafter provided in section 31.



9. Compensation not to be assigned attached or charged Save as provided by this Act no lump sum or half-monthly paymentpayable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any personother than the workman by operation of law nor shall any claim be set off against the same.

10. Notice and claim (1) No claim for compensation shall be entertained by a Commissioner unless notice of the accident has been

given in the manner hereinafter provided as soon as practicable after the happening thereof and unless the claim is preferred beforehim within two years of the occurrence of the accident or in case of death within two years from the date of death :

Provided that where the accident is the contracting of a disease in respect of which the provisions of sub-section (2) of section 3 areapplicable the accident shall be deemed to have occurred on the first of the days during which the workman was continuously absentfrom work in consequence of the disablement caused by the disease :

Provided further that in case of partial disablement due to the contracting of any such disease and which does not force the workmanto absent himself from work the period of two years shall be counted from the day the workman gives notice of the disablement to hisemployer :

Provided further that if a workman who having been employed in an employment for a continuous period specified under sub-section(2) of section 3 in respect of that employment ceases to be so employed and develops symptoms of an occupational disease peculiar to that employment within two years of the cessation of employment the accident shall be deemed to have occurred on the day onwhich the symptoms were first detected :

Provided further that the want of or any defect or irregularity in a notice shall not be a bar to the entertainment of a claim -

(a) if the claim is preferred in respect of the death of a workman resulting from an accident which occurred on the premises of theemployer or at any place where the workman at the time of the accident was working under the control of the employer or of anyperson employed by him and the workman died on such premises or at such place or on any premises belonging to the employer or died without having left the vicinity of the premises or place where the accident occurred or

(b) if the employer or any one of several employers or any person responsible to the employer for the management of any branch of the trade or business in which the injured workman was employed had knowledge of the accident from any other source at or aboutthe time when it occurred :

Provided further that the Commissioner may entertain and decide any claim to compensation in any case notwithstanding that thenotice has not been given or the claim has not been preferred in due time as provided in this sub-section if he is satisfied that thefailure so to give the notice or prefer the claim as the case may be was due to sufficient cause.







that such refusal disregard or failure was unreasonable in the circumstances of the case and that the injury has been aggravatedthereby the injury and resulting disablement shall be deemed to be of the same nature and duration as they might reasonably havebeen excepted to be if the workman had been regularly attended by a qualified medical practitioner whose instructions he hadfollowed and compensation if any shall be payable accordingly.

12. Contracting Where any person (hereinafter in this section referred to as the principal) in the course of or for the purposes of histrade or business contract with any other person (hereinafter in this section referred to as the contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the principal the principal shallbe liable to pay to any workman employed in the execution of the work any compensation which he would have been liable to pay if that workman had been immediately employed by him; and where compensation is claimed from the principal this Act shall apply asif references to the principal were substituted for references to the employer except that the amount of compensation shall becalculated with reference to the wages of the workman under the employer by whom he is immediately employed. Where theprincipal is liable to pay compensation under this section he shall be entitled to be indemnified by the contractor or any other personfrom whom the workman could have recovered compensation and where a contractor who is himself a principal is liable to a paycompensation or to indemnify a principal under this section be shall be entitled to be indemnified by any person standing to him in therelation of a contractor from whom the workman could have recovered compensation and all questions as to the right to and the

amount of any such indemnity shall in default of agreement be settled by the Commissioner. Nothing in this section shall beconstrued as preventing a workman from recovering compensation from the contractor instead of the principal. This section shall notapply in any case where the accident occurred elsewhere that on in or about the premises on which the principal has undertaken or usually undertakes as the case may be to execute the work or which are otherwise under his control or management.

13. Remedies of employer against stranger Where a workman has recovered compensation in respect of any injury caused under circumstances creating a legal liability of some person other than the person by whom the compensation was paid to pay damages inrespect thereof the person by whom the compensation was paid and any person who has been called on to pay an indemnity under section 12 shall be entitled to be indemnified by the person so liable to pay damages of aforesaid

14. Insolvency of employer Where any employer has entered into a contract with any insurers in respect of any liability under this

Act to any workman then in the event of the employer becoming insolvent or making a compensation or scheme of arrangement withhis creditors or if the employer is a company in the event of the company having commenced to be wound up the rights of theemployer against the insurers as respects that liability shall notwithstanding anything in any law for the time being in force relating toinsolvency or the winding up of companies be transferred to and vest in the workman and upon any such transfer the insurers shallhave the same rights and remedies and be subject to the same liabilities as if they were the employer so however that the insurersshall not be under any greater liability to the workman than they would have been under the employer. If the liability of the insurers tothe workman is less than the liability of the employer to the workman the workman may prove for the balance in the insolvencyproceedings or liquidation. Where in any case such as is referred to in sub-section (1) the contract of the employer with the insurersto void or voidable by reason of non-compliance on the part of the employer with any terms or conditions of the contract (other than a



stipulation for the payment of premia) the provisions of that sub-section shall apply as if the contract were not void or voidable andthe insurers shall be entitled to prove in the insolvency proceedings or liquidation for the amount paid to the workman : Provided thatthe provisions of this sub-section shall not apply in any case in which the workman fails to give notice to the insurers of thehappening of the accident and of any resulting disablement as soon as practicable after he becomes aware of the institution of theinsolvency or liquidation proceedings.

There shall be deemed to be included among the debts which under section 49 of the Presidency-towns Insolvency Act 1909 (3 of 1909) or under section 61 of the Provincial Insolvency Act 1920 (5 of 1920) or under Section 530 of the Companies Act 1956 (1 of 1956) are in the distribution of the property of an insolvent or in the distribution of the assets of a company being wound up to be paidin priority to all other debts the amount due in respect of any compensation the liability where for accrued before the date of the order of adjudication of the insolvent or the date of the commencement of the winding up as the case may be and those Acts shall haveeffect accordingly. Where the compensation is a half-monthly payment the amount due in respect thereof shall for the purpose of thissection be taken to be the amount of the lump sum for which the half-monthly payment could if redeemable be redeemed if application were made for that purpose under section 7 and a certificate of the Commissioner as to the amount of such sum shall beconclusive proof thereof. The provisions of sub-section (4) shall apply in the case of any amount for which an insurer is entitled toprove under sub-section (3) but otherwise those provisions shall not apply where the insolvent or the company being wound up hasentered into such a contract with insurers as is referred to in sub-section (1). This section shall not apply where a company is woundup voluntarily merely for the purposes of reconstruction or of amalgamation with another company.

14A. Compensation to be first charge on assets transferred by employer

Where an employer transfers his assets before any amount due in respect of any compensation the liability wherefor accrued beforethe date of the transfer has been paid such amount shall notwithstanding anything contained in any other law for the time being inforce be a first charge on that part of the assets so transferred as consists of immovable property.

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

may 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 CommissionersIf 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 (1) Where any matter under this Act is to be done by or before a Commissioner the same shall subject to the provisions of this Actand to any rules made hereunder be done by or before the Commissioner for the area in which -

(a) the accident took place which resulted in the injury; or

(b) the workman or in case of his death the dependant claiming the compensation ordinarily resides; or

(c) the employer has his registered office :

Provided that no matter shall be processed before or by a Commissioner other than the Commissioner having jurisdiction over thearea in which the accident took place without his giving notice in the manner prescribed by the Central Government to theCommissioner having jurisdiction over the area and the State Government concerned :

Provided further that where the workman being the master of a ship or a seaman or the captain or a member of the crew of anaircraft or a workman in a motor vehicle or a company meets with the accident outside India any such matter may be done by or



before a Commissioner for the area in which the owner or agent of the ship aircraft or motor vehicle resides or carries on business or the registered office of the company is situate as the case may be.

(1A) If a Commissioner other than the Commissioner with whom any money has been deposited under section 8 proceeds with amatters under this Act the former may for the proper disposal of the matter call for transfer of any records or moneys remaining withthe latter and on receipt of such a request he shall comply with the same.

(2) If a Commissioner is satisfied that any matter arising out of any proceedings pending before him can be more conveniently dealtwith by any other Commissioner whether in the same State or not he may subject to rules made under this Act order such matter tobe transferred to such other Commissioner either for report or for disposal and if he does so shall forthwith transmit to such other Commissioner all documents relevant for the decision of such matter and where the matter in transferred for disposal shall alsotransmit in the prescribed manner any money remaining in his hands or invested by him for the benefit of any party to theproceedings :

Provided that the Commissioner shall not where any party to the proceedings has appeared before him made any order of transfer relating to the distribution among dependants of a lump sum without giving such party an opportunity of being heard :

(3) The Commissioner to whom any matter is so transferred shall subject to rules made under this Act inquire there into and if thematter was transferred for disposal continue the proceedings as if they had originally commenced before him.

(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.

(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 if such 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 determiningthe 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 of taking 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 thepermission of the Commissioner by any other person so authorised.

25. Method of recording evidenceThe Commissioner shall make a brief memorandum of the substance of the evidence of every witness as the examination of the



witness proceeds and such memorandum shall be written and signed by the Commissioner with his own hand and shall form part of the 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. CostsAll costs incidental to any proceedings before a Commissioner shall subject to rules made under this Act be in the discretion of theCommissioner.

(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 or

disallowing 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 of a 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 or in 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. RecoveryThe 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 (otherwisethan in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a

contract with a railway administration, 6[and to persons employed in an industrial or other establishment specified 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 Official Gazette,extend the provisions of 7[this Act] or any of them to the payment of wages to any class of persons employed in 8[any establishmentor class of establishments specified by the Central Government or a State Government under sub-clause (h) of clause (ii) of section2]:

9[PROVIDED that in relation to any such establishment owned by the Central Government no such notification shall be issued



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, average 10[onethousand six hundred rupees] a month or more.

2. DefinitionsIn 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 any place towhich 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 or reward;

(aa) air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces of the Unionor 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;

(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, bridges or 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, having regard tothe nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification inthe 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 of 1890); and

13[(vi) "wages" means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capableof being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employedin 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);

(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 time withinwhich 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 payable under 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 any serviceexcluded from the computation of wages by a general or special order of the State Government;





(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 due on

completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before theexpiry 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 be paidbefore 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 the establishmentfor any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid before the expiry of thesecond 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 be

specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in afactory ) 15[or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the StateGovernment] 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 except inconsultation 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 notesAll 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 wages either bycheque 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 of anemployed 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 this Act, bedeemed 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 of anysuch penalty are in conformity with the requirements, if any, which may be specified in this behalf by the State Government bynotification in the Official Gazette.]

(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may 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 money for whichhe 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 under any lawfor the time being in force (whether the government or the board is the employer or not) or any other authority engaged in the

business of subsidising house- accommodation which may be specified in this behalf by the State Government by notification in theOfficial Gazette;]

(e) deductions for such amenities and services supplied by the employer as the 22[***] State Government 15[or any officer specifiedby 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 the purposesof 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 rules approvedby 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;]

(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a court or other authority competent to make such order;

(i) deductions for subscriptions to, and for repayment of advances from any provident fund to which the Provident Funds Act, 1925(19 of 1925), applies or any recognised provident fund as defined in 24[section 58A of the Indian Income Tax Act, 1922 (11 of 1922)],or any provident fund approved in this behalf by the State Government, during the continuance of such approval; 25[***]

26[(j) deductions for payments to co-operative societies approved by the State Government 15[or any officer specified by it in thisbehalf] or to a scheme of insurance maintained by the Indian Post Office, 27[and]

13[(k) deductions, made with the written authorisation of the person employed for payment of any premium on his life insurancepolicy to the Life Insurance Corporation Act of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being deposited in any Post Office SavingsBank in furtherance of any savings scheme of any such government.]]

6[(kk) deductions, made with the written authorisation of the employed person, for the payment of his contribution to any fundconstituted by the employer or a trade union registered under the Trade Union Act, 1926 (16 of 1926), for the welfare of the

employed persons or the members of their families, or both, and approved by the State Government or any officer specified by it inthis behalf, during the continuance of such approval;

(kkk) deductions, made with the written authorisation of the employed person, for payment of the fees payable by him for themembership of any trade union registered under the Trade Union Act, 1926 (16 of 1926);]

15[(l) deductions, for payment of insurance premia on Fidelity Guarantee Bonds;



(m) deductions for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;

(n) deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person toinvoice, to bill, to collect or to account for the appropriate charges due to that administration whether in respect of fares, freight,demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect of sale of commodities in

grain shops or otherwise;

(o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly grantedby 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 Minister’s 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 its employees.]

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 case may 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 the employed

person or otherwise any amount payable By such person under any law for the time being in force other than the Indian RailwaysAct, 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, withthe 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 prescribed place or places.

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

(4) The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an amountequal to 29[three per cent] of the wages payable to him in respect of that wage-period.

(5) No fine shall be imposed on any employed person who is under the age of fifteen years.

(6) No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of sixty days from theday on which it was imposed.

(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.

(8) All fines 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; and all such realisations shall be applied only to such purposes beneficial to thepersons employed in the factory or establishment as are approved by the prescribed authority.

Explanation : When the persons employed upon or in any railway, factory or 12[industrial or other establishment] are part only of astaff employed under the same management, all such realisations may be credited to a common fund maintained for the staff as awhole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.

9. Deductions for absence from duty(1) Deductions may be made under clause (b) of sub-section (2) of section 7 only on account of the absence of an employed personfrom the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any partof the period during which he is so required to work.

(2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-periodfor which the deduction is made in a larger proportion than the period for which he was absent bears to the total period, within suchwage-period, during which by the terms of his employment, he was required to work:

PROVIDED that, subject to any rules made in this behalf by the State Government, if ten or more employed persons acting in concertabsent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his



wages for eight days as may by any such terms be due to the employer in lieu of due notice.

30[Explanation : For the purposes of this section, an employed person shall be deemed to be absent from the place where he isrequired to work if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is notreasonable in the circumstances, to carry out his work.]

10. Deductions for damage or loss 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 or losscaused 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 7 until theemployed person has been given an opportunity of showing cause against the deduction or otherwise than in accordance with suchprocedure 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 paymentof wages under section 3 in such form as may be prescribed.

11. Deductions for services renderedA 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 advancesDeductions 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 travell ing-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 loans



Deductions 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.]

13. Deductions for payments to co-operative societies and insurance schemesDeductions 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 workperformed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars 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 an

Inspector for the purposes of this Act in respect of all factories within the local l imits 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 for the 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 or other 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];



(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 thisAct;

(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] of the 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 Workmen’s Compensation or other officer with experience as a Judge of a Civil Court or as a Stipendiary Magistrate to be the authority to hear and decide for any

specified 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:

PROVIDED that where the State Government considers it necessary so to do, it may appoint more than one authority for anyspecified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.]

(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any



payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade unionauthorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of theauthority appointed under sub-section (1), may apply to such authority for a direction under sub-section (3):

PROVIDED that every such application shall be presented within 35[twelve months] from the date on which the deduction from thewages was made or from the date on which the payment of the wages was due to be made, as the case may be:

PROVIDED FURTHER that any application may be admitted after the said period 35[twelve months] when the applicant satisfies theauthority that he had sufficient cause for not making the application within such period.

(3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other personresponsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such

further inquiry (if any) as may be necessary, may, without prejudice to any other penalty to which such employer or other person isliable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages,together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in theformer case and 36[not exceeding twenty-five rupees in the latter, and even if the amount deducted or the delayed wages are paid

before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding twenty-five rupees]:

PROVIDED that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfiedthat the delay was due to-

(a) a bona fide error or bona fide dispute as to the amount payable to the employed person, or

(b) the occurrence of an emergency, or the existence of exceptional circumstances, such that the person responsible for the paymentof the wages was unable, though exercising reasonable diligence, to make prompt payment, or

(c) the failure of the employed person to apply for or accept payment.

11[(4) If the authority hearing an application under this section is satisfied-

(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

(b) that in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have been



compelled 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 of the 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 of the 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 i t 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, or against 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) of

section 15, if the total amount of wages claimed to have been withheld from the employed person exceeds twenty rupees or from theunpaid group to which the employed person belongs or belonged exceeds fifty rupees, or]

(c) by any person directed to pay a penalty under sub-section (4) of section 15.

15[(1A) No appeal under clause (a) of sub-section (1) shall lie unless the memorandum of appeal is accompanied by a certificate bythe authority to the effect that the appellant has deposited the amount payable under the direction appealed against.]



13[(2) Save as provided in sub-section (1) any order dismissing either wholly or in part an application made under sub-section (2) of section 15, or a direction made under sub-section (3) or sub-section (4) of that section shall be final.]

65[(3) Where an employer prefers an appeal under this section the authority against whose decision the appeal has been preferredmay, and if so directed by the court referred to in sub-section (1) shall, pending the decision of the appeal, withhold payment of anysum in deposit with it.

(4) The court referred to in sub-section (1) may if it thinks fit submit any question of law for the decision of the High Court and, if it sodoes, shall decide the question in conformity with such decision.]

14[17A. Conditional attachment of property of employer or other person responsible for payment of wages(1) Where at any time after an application has been made under sub-section (2) of section 15 the authority, or where at any time after an appeal has been filed under section 17 by an employed person or 11[any legal practitioner or any official of a registered tradeunion authorised in writing to act on his behalf or any Inspector under this Act or any other person permitted by the authority to makean application under sub-section (2) of section 15] the Court referred to in that section, is satisfied that the employer or other personresponsible for the payment of wages under section 3 is likely to evade payment of any amount that may be directed to be paidunder section 15 or section 17, the authority or the court, as the case may be, except in cases where the authority or court is of the

opinion that the ends of justice would be defeated by the delay, after giving the employer or other person an opportunity of beingheard, may direct the attachment of so much of the property of the employer or other person responsible for the payment of wagesas is, in the opinion of the authority or court, sufficient to satisfy the amount which may be payable under the direction.

(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to attachment before judgement under that Code shall,so far as may be, apply to any order for attachment under sub-section (1).]20. Penalty for offences under the Act(1) Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of thefollowing sections, namely, 41[section 5 except sub-section (4) thereof, section 7, section 8 except sub-section (8) thereof, section 9,section 10 except sub-section (2) thereof, and section 11 to 13], both inclusive, shall be punishable with fine 42[which shall not beless 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.]

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 butwhich 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.

(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 outAny contract or agreement, whether made before or after the commencement of this Act, whereby an employed person relinquishesany right conferred by this Act shall be null and void in so far as it purports to deprive him of such right.

6] MINIMUM WAGES ACT, 1948

An Act to provide for fixing minimum rates of wages in certain employmentsWhereas it is expedient to provide for fixing minimumrates of wages in certain employments;It is hereby enacted as follows: -

1. Short title and extent (1) This Act may be called the Minimum Wages Act, 1948. (2) It extends to the whole of India.l[***]

2. InterpretationIn this Act, unless there is anything repugnant in the subject or context,-

2[(a) "adolescent" means a person who has completed his fourteenth years of age but has not completed his eighteenth year; (aa)"adult" means a person who has completed his eighteenth years of age;]

(b) "appropriate government" means-(i) in relation to any scheduled employment carried on by or under the authority of the 3[Central Government or a railwayadministration], or in relation to a mine, oilfield or major port, or any corporation established by 4[a Central Act], the CentralGovernment, and

(ii) in relation to any other scheduled employment, the State Government; 5(bb) "child" means a person who has not completed hisfourteenth year of age;]

(c) "competent authority" means the authority appointed by the appropriate government by notification in its Official Gazette toascertain from time to time the cost of living index number applicable to the employees employed in the scheduled employmentsspecified in such notification;

(d) "cost of living index number" in relation to employees in any scheduled employment in respect of which minimum rates of wageshave been fixed, means the index number ascertained and declared by the competent authority by notification in the Official Gazette



to be the cost of living index number applicable to employees in such employment;

(e) "employer" means any person who employs, whether directly or through another person, or whether on behalf of himself or anyother person, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixedunder this Act, and includes, except in sub-section (3) of section 26,-(i) in a factory where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed

under this Act, any person named under 6[clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948)], asmanager of the factory;(ii) in any scheduled employment under the control of any government in India in respect of which minimum rates of wages havebeen fixed under this Act, the person or authority appointed by such government for the supervision and control of employees or where no person or authority is so appointed the head of the department;(iii) in any scheduled employment under any local authority in respect of which minimum rates of wages have been fixed under thisAct, the person appointed by such authority for the supervision and control of employees or where no person is so appointed, thechief executive officer of the local authority;(iv) in any other case where there is carried on any scheduled employment in respect of which minimum rates of wages have beenfixed under this Act, any person responsible to the owner for the supervision and control of the employees or for the payment of wages;

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

(g) "scheduled employment" means an employment specified in the Schedule, or any process or branch of work forming part of suchemployment;

(h) "wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done insuch employment 7[and includes house rent allowance], but does not include-(i) the value of- (a) any house, accommodation, supply of light, water, medical attendance, or (b) any other amenity or any serviceexcluded by general or special order of the appropriate government;

(ii) any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance;(iii) any travelling allowance or the value of any travelling concession;(iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge; (i) "employee" means any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed; and includesan out-worker to whom any articles or materials are given out by another person 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 that other person where 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 that other person; and also includes an employee declared to be an employee by theappropriate government; but does not include any member of the Armed Forces of the,8[Union].

3. Fixing of minimum rates of wages9[(1) The appropriate government shall, in the manner hereinafter provided,-

10[(a) fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Scheduleand in an employment added to either Part by notification under section 27:

PROVIDED that the appropriate Government may, in respect of employees employed in an employment specified in Part II of theSchedule, instead of fixing minimum rates of wages under this clause for the whole State, fix such rates for a part of the State or for any specified class or classes of such employment in the whole State or part thereof;]

(b) review at such intervals as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed andrevise the minimum rates, if necessary:

7[PROVIDED that where for any reason the appropriate government has not reviewed the minimum rates of wages fixed by it inrespect of any scheduled employment within any interval of five years, nothing contained in this clause shall be deemed to prevent itfrom reviewing the minimum rates after the expiry of the said period of five years and revising them, if necessary, and until they areso revised the minimum rates in force immediately before the expiry of the said period of five years shall continue in force.]

(1A) Notwithstanding anything contained in sub-section (1), the appropriate government may refrain from fixing minimum rates of wages in respect of any scheduled employment in which there are in the whole State less than one thousand employees engaged insuch employment, but if at any time, 11[***] the appropriate government comes to a finding after such inquiry as it may make or cause to be made in this behalf that the number of employees in any scheduled employment in respect of which it has refrained fromfixing minimum rates of wages has risen to one thousand or more, it shall fix minimum rates of wages payable to employees in suchemployment 12[as soon as may be after such finding.]

(2) The appropriate government may fix-

(a) a minimum rate of wages for time work (hereinafter referred to as "a minimum time rate");

(b) a minimum rate of wages for piece work (hereinafter referred to as "a minimum piece rate");

(c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to suchemployees a minimum rate of wages on a time work basis (hereinafter referred to as "a guaranteed time rate");



(d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum rate which would otherwise beapplicable, in respect of overtime work done by employees (hereinafter referred to as "overtime rate").

13[(2A) Where in respect of an industrial dispute relating to the rates of wages payable to any of the employees employed in ascheduled employment, any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947 (14of 1947) or before any like authority under any other law for the time being in force, or an award made by any Tribunal, National

Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the scheduledemployment is issued during the pendency of such proceeding or the operation of the award, then, notwithstanding anythingcontained in this Act, the minimum rates of wages so fixed or so revised shall not apply to those employees during the period inwhich the proceeding is pending and the award made therein is in operation or, as the case may be, where the notification is issuedduring the period of operation of an award, during that period; and where such proceeding or award relates to the rates of wagespayable to all the employees in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of thatemployment during the said period.]

(3) In fixing or revising minimum rates of wages under this section,-

(a) different minimum rates of wages may be fixed for-

(i) different scheduled employments;

(ii) different classes of work in the same scheduled employment;

(iii) adults, adolescents, children and apprentices;

(iv) different localities;

14[(b) minimum rates of wages may be fixed by any one or more of the following wage periods, namely:

(i) by the hour,

(ii) by the day,

(iii) by the month, or

(iv) by such other larger wage-period as may be prescribed;



and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the casemay be, may be indicated:]

PROVIDED that where any wage-periods have been fixed under section 4 of the Payment of Wages Act, 1936 (4 of 1936), minimumwages shall be fixed in accordance therewith.

4. Minimum rate of wages(1) Any minimum rate of wages fixed or revised by the appropriate government in respect of scheduled employments under section 3may consist of-

(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriategovernment may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to suchworkers (hereinafter referred to as the "cost of living allowance"); or

(ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concessional rates, where so authorised; or

(iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.

(2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities atconcessional rate shall be computed by the competent authority at such intervals and in accordance with such directions as may bespecified or given by the appropriate government.

14[5. Procedure for fixing and revising minimum wages(1) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimumrates of wages so fixed, the appropriate government shall either-

(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of suchfixation or revision, as the case may be, or

(b) by notification in the Official Gazette, publish its proposals for the information of persons likely to be affected thereby and specifya date, not less than two months from the date of the notification, on which the proposals will be taken into consideration.

(2) After considering the advice of the committee or committees appointed under clause (a) of sub-section (1), or as the case maybe, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate



government shall, by notification in the Official Gazette fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three monthsfrom the date of its issue:

PROVIDED that where the appropriate government proposes to revise the minimum rates of wages by the mode specified in clause(b) of sub-section (1), the appropriate government shall consult the Advisory Board also.]

6. Advisory committees and sub-committees[Repealed by the Minimum Wages (Amendment) Act, 1957 (30 of 1957)]

7. Advisory BoardFor the purpose of co-ordinating work of 15[committees and sub-committees appointed under section 5] and advising the appropriategovernment generally in the matter of fixing and revising minimum rates of wages, the appropriate government shall appoint anAdvisory Board.

8. Central Advisory Board(1) For the purpose of advising the Central and State Governments in the matters of the fixation and revision of minimum rates of wages and other matters under this Act and for co-ordinating the work of the Advisory Boards, the Central Government shall appointa Central Advisory Board.

(2) The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers andemployees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of itstotal number of members; one of such independent persons shall be appointed the Chairman of the Board by the CentralGovernment.

9. Composition of committees, etc.Each of the committees, sub-committees 16[***] and the Advisory Board shall consist of persons to be nominated by the appropriate

government representing employers and employees in the scheduled employments, who shall be equal in number, and independentpersons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairmanby the appropriate government.

11. Wages in kind(1) Minimum wages payable under this Act shall be paid in cash.



(2) Where it has been the custom to pay wages wholly or partly in kind, the appropriate government being of the opinion that it isnecessary in the circumstances of the case may, by notification in the Official Gazette, authorise the payment of minimum wageseither wholly or partly in kind.

(3) If appropriate government is of the opinion that provision should be made for the supply of essential commodities at concessionalrates, the appropriate government may, by notification in the Official Gazette, authorise the provision of such supplies at

concessional rates.

(4) The cash value of wages in kind and of concessions in respect of supplies of essential commodities at concessional ratesauthorised under sub-sections (2) and (3) shall be estimated in the prescribed manner.

12. Payment of minimum rates of wages(1) Where in respect of any scheduled employment a notification under section 5 17[***] is in force, the employer shall pay to everyemployee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by suchnotification for that class of employees in that employment without any deductions except as may be authorised within such time andsubject to such conditions as may be prescribed.

(2) Nothing contained in this section shall affect the provisions of the Payment of Wages Act, 1936 (4 of 1936).

13. Fixing hours for a normal working day, etc.18[(1) In regard to any scheduled employment minimum rates of wages in respect of which have been fixed under this Act, theappropriate government may-

(a) fix the number of hours of work which shall constitute a normal working day, inclusive of one or more specified intervals;

(b) provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest;

(c) provide for payment for work on a day of rest at a rate not less than the overtime rate.]

19[(2) The provisions of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subjectto such conditions as may be prescribed:-

(a) employees engaged on urgent work, or in any emergency which could not have been foreseen or prevented;



(b) employees engaged in work in the nature of preparatory or complementary work which must necessarily be carried on outside thelimits laid down for the general working in the employment concerned;

(c) employees whose employment is essentially intermittent;

(d) employees engaged in any work which for technical reasons has to be completed before the duty is over;

(e) employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces.

(3) For the purposes of clause (c) of sub-section (2), employment of an employee is essentially intermittent when it is declared to beso by the appropriate government on the ground that the daily hours of duty of the employee, or if there be no daily hours of duty assuch for the employee, the hours of duty, normally include periods of inaction during which the employee may be on duty but is notcalled upon to display either physical activity or sustained attention.]

THE SCHEDULE

[See section 2(g) and 27] PART I(1) Employment in any woollen carpet making or shawl weaving establishment.(2) Employment in any rice mill, flour mill or dal mill.(3) Employment in any tobacco (including bidi making) manufactory.(4) Employment in any plantation, that is to say, any estate which is maintained for the purpose of growing cinchona, rubber, tea or

coffee.(5) Employment in any oil mill.(6) Employment under any local authority.

24[(7) Employment on the construction or maintenance of roads or in building operations.](8) Employment in stone breaking or stone crushing.

(9) Employment in any lac manufactory.(10) Employment in any mica works.(11) Employment in public motor transport.(12) Employment in tanneries and leather manufactory.

25[Employment in gypsum mines.Employment in barytes mines.Employment in bauxite mines.]

26[Employment in manganese mines.]27[Employment in the maintenance of buildings and employment in the construction and maintenance of runways]



28[Employment in china clay mines.Employment in kyanite mines.]

29[Employment in copper mines.]30[Employment in clay mines.]31[Employment in magnesite mines covered under the Mines Act, 1952]32[Employment in white clay mines.]

33[Employment in stone mines.]34[Employment in steatite (including mines producing soapstone & tale)]35[Employment in ochre mines.]36[Employment in asbestos mines.]37[Employment in fire clay mines.]38[Employment in chromite mines.]39[Employment in quartizite mines.

Employment in quartz mines.Employment in silica mines.]

40[Employment in graphite mines.41[Employment in felspar mines.]

42[Employment in laterite mines.]43[Employment in dolomite mines.

Employment in red oxide mines.]44[Employment in wolfram mines.]45[Employment in iron-ore mines.]46[Employment in granite mines.]47[Employment in rock phosphate mines.]48[Employment in haemetite mines.]49[Employment in loading and unloading in railways, goods sheds.

Employment in docks and ports.]50[Employment in ashpit cleaning on railways.]

51[Employment in marble and calcite mines.]52[Employment in uranium mines.]53[Employment in mica mines.]54[Employment in lignite mines;

Employment in gravel mines.Employment in state mines.Employment in laying of underground cables, electric lines, water supply lines and sewerage pipe line.]

PART II



(1) Employment in agriculture, that is to say, in any form of farming, including the cultivation and tillage of the soil, dairy farming,the production, cultivation, growing and harvesting of any agricultural or horticultural commodity, the raising of live-stock, bees or poultry, and any practice performed by a farmer or on a farm as incidental to or in conjunction with farm operations (including anyforestry or timbering operations and the preparation for market and delivery to storage or to market or to carriage for transportation tomarket of farm produce).

7] INDUSTRIAL DISPUTES ACT, 1947

CHAPTER IPRELIMINARY

1. Short title, extent and commencement(1) This Act may be called the Industrial Disputes Act, 1947.

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

2[* * *]

(3) It shall come into force on the first day of April, 1947.

2. DefinitionsIn this Act, unless there is anything repugnant in the subject or context,-

(a) "appropriate government" means-







department;

(ii) in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

32[(gg) "executive", in relation to a trade union, means the body, by whatever name called, to which the managementof the affairs of the trade union is entrusted;]

33[** *]

(i) a person shall be deemed to be "independent" for the purpose of his appointment as the chairman or other member of a Board, Court or Tribunal, if he is unconnected with the industrial dispute referred to such Board, Court or Tribunalor with any industry directly affected by such dispute:

34[PROVIDED that no person shall cease to be independent by reason only of the fact that he is a shareholder of anincorporated company which is connected with, or likely to be affected by, such industrial dispute; but in such a case,he shall disclose to the appropriate government the nature and extent of the shares held by him in such company;]

35[(j) "industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling,service, employment, handicraft, or industrial occupation or a vocation of workmen;

(k) "industrial dispute" means any dispute or difference between employers and employers, or between employers andworkmen, or between workmen and workmen, which is connected with the employment or non-employment or theterms of employment or with the conditions of labour, of any person;

29[(ka) "Industrial establishment or undertaking" means an establishment or undertaking in which any industry iscarried on:

PROVIDED that where several activities are carried on in an establishment or undertaking and only one or some of

such activities is or are an industry or industries, then,-

(a) if any unit of such establishment or undertaking carrying on any activity, being an industry, is severable from theother unit or units of such establishment or undertaking, such unit shall be deemed to be a separate industrialestablishment or undertaking;

(b) if the predominant activity or each of the predominant activities carried on in such establishment or undertaking or any unit thereof is an industry and the other activity or each of the other activities carried on in such establishment or



undertaking or unit thereof is not severable from and is, for the purpose of carrying on, or aiding the carrying on of,such predominant activity or activities, the entire establishment or undertaking or, as the case may be, unit thereof shall be deemed to be an industrial establishment or undertaking;]

36[(kk) "insurance company" means an insurance company as defined in section 2 of the Insurance Act 1938 (4 of 1938), having branches or other establishments in more than one State;]

37[(kka) "Khadi" has the meaning assigned to it in clause (d) of section 2 of the Khadi and Village IndustriesCommission Act, 1956 (61 of 1956);]

37[38[(kkb) "Labour Court" means a Labour Court constituted under section 7;]

19[(kkk) "lay-off" (with its grammatical variations and cognate expressions) means the failure, refusal or inability of anemployer on account of shortage of coal, power or raw materials or the accumulation of stocks or the break-down of machinery 39[or natural calamity or for any other connected reason] to give employment to a workman whose name isborne on the muster rolls of his industrial establishment and who has not been retrenched;

Explanation : Every workman whose name is borne on the muster rolls of the industrial establishment and whopresents himself for work at the establishment at the time appointed for the purpose during normal working hours onany day and is not given employment by the employer within two hours of his so presenting himself shall be deemedto have been laid-off for that day within the meaning of this clause:

PROVIDED that if the workman, instead of being given employment at the commencement of any shift for any day isasked to present himself for the purpose during the second half of the shift for the day and is given employment then,he shall be deemed to have been laid-off only for one-half of that day:

PROVIDED FURTHER that if he is not given any such employment even after so presenting himself, he shall not bedeemed to have been laid-off for the second half of the shift for the day and shall be entitled to full basic wages and

dearness allowance for that part of the day;]

(l)"lock-out" means the 39[ temporary dosing of a place of employment], or the suspension of work, or the refusal byan employer to continue to employ any number of persons employed by him;

18[(1a) "major port" means a major port as defined in clause (8) of section 3 of the Indian Ports Act, 1908 (15 of 1908);



(1b) "mine" means a mine as defined in clause (j) of sub-section (1) of section 2 of the mines Act, 1952 (35 of 1952);]

38[(ll) "National Tribunal" means a National Industrial Tribunal constituted under section 7B;]

32[(lll) "office bearer", in relation to a trade union, includes any member of the executive thereof, but does not includean auditor;]

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

(n) "public utility service" means-

(i) any railway service 40[or any transport service for the carriage of passengers or goods by air];

41[(ia) any service in, or in connection with the working of , any major port or dock;]

(ii) any section of an industrial establishment, on the working of which the safety of the establishment or the workmenemployed therein depends;

(iii) any postal, telegraph or telephone service;

(iv) any industry which supplies power, light or water to the public;

(v) any system of public conservancy or sanitation;

(vi) any industry specified in the 42[First Schedule] which the appropriate government may, if satisfied that publicemergency or public interest so requires, by notification in the Official Gazette, declare to be a public utility service for the purposes of this Act, for such period as may be specified in the notification:

PROVIDED that the period so specified shall not, in the first instance, exceed six months but may, by a likenotification, be extended from time to time, by any period not exceeding six months, at any one time if in the opinion of the appropriate government public emergency or public interest requires such extension;

(o) "railway company" means a railway company as defined in section 3 of the Indian Railways Act, 1890 (9 of 1890);

19[(oo) "retrenchments" means the termination by the employer of the service of a workman for any reasonwhatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not include-



(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the contract of employment between theemployer and the workman concerned contains a stipulation in that behalf; or

43[(bb) termination of the service of the workman as a result of the non-renewal of the contract of employmentbetween the employer and the workman concerned on its expiry or of such contract being terminated under astipulation on that behalf contained therein; or]

(c) termination of the service of a workman on the ground of continued ill-health;]

44[(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a writtenagreement between the employer and workmen arrived at otherwise than in the course of conciliation proceedingwhere such agreement has been signed by the parties thereto in such manner as may be prescribed and a copythereof has been sent to 45[an officer authorised in this behalf by] the appropriate government and the conciliationofficer;]

(q) "strike" means a cessation of work by a body of persons employed in any industry acting in combination or aconcerted refusal, or a refusal, under; a common understanding of any number of persons who are or have been soemployed to continue to work or to accept employment;

46(qq) "trade union" means a trade union registered under the Trade Union Act, 1926, (16 of 1926);]

47[(r) "Tribunal" means an Industrial Tribunal constituted under section 7A and includes an Industrial Tribunalconstituted before the 10th day of March, 1957, under this Act;]

47[(ra) "unfair labour practice" means any of the practices specified in the Fifth Schedule;

(rb) "village industries" has the meaning assigned to it in clause (h) of section 2 of the Khadi and Village IndustriesCommission Act, 1956 (61 of 1956);]

48[(rr) "wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of workdone in such employment, and includes-



(i) such allowances (including dearness allowance) as the workman is for the time being entitled to;

(ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of anyservice or of any concessional supply of food grains or other articles;

(iii) any travelling concession;

47[(iv) any commission payable on the promotion of sales or business or both;]

but does not include-

(a) any bonus;

(b)any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of theworkman under any law for the time being in force;

(c) any gratuity payable on the termination of his service;]

49[(s) "workman" means any person (including an apprentice employed in any industry to do any manual, unskilled,skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment beexpress or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includesany such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, thatdispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person-

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957(62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested inhim, function mainly of a managerial nature.]

50[2A. Dismissal, etc., of an individual workman to be deemed to be an industrial dispute

f



Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individualworkman, any dispute or difference between that workman and his employer connected with, or arising out of, suchdischarge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that noother workman nor any union of workmen is a party to the dispute.]

INDUSTRIAL DISPUTES ACT, 1947

CHAPTER II

AUTHORITIES UNDER THIS ACT

3. Works Committee(1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on anyday in the preceding twelve months, the appropriate government may by general or special order require the employer to constitutein the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in theestablishment, so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer. The representatives of the workmen shall be chosen in the prescribed manner from among the

workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade UnionsAct, 1926 (16 of 1926).(2) It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations betweenthe employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavour tocompose any material difference of opinion in respect of such matters.

4. Conciliation officers(1) The appropriate. government may, by notification in the Official Gazette, appoint such number of persons, as it thinks fit to beconciliation officers, charged with the duty of mediating in and promoting the settlement of industrial disputes.(2) A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more.specified industries and either permanently or for a limited period.

5. Boards of Conciliation(1) The appropriate government may as occasion arises by notification in the Official Gazette constitute a Board of Conciliation for promoting the settlement of an industrial dispute.(2) A Board shall consist of a Chairman and two or four other members, as the appropriate government thinks fit.(3) The Chairman shall be an independent person and the other members shall be persons appointed in equal numbers to representthe parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party:PROVIDED that, if any party fails to make a recommendation as aforesaid within the prescribed time, the appropriate government

h ll i t h it thi k fit t t th t t



shall appoint such persons as it thinks fit to represent that party.(4) A Board, having the prescribed quorum, may act notwithstanding the absence of the Chairman or any of its members or anyvacancy in its number:PROVIDED that, if the appropriate government notifies the Board that the services of the Chairman or of any other member haveceased to be available, the Board shall not act until a new Chairman or member, as the case may be, has been appointed.

6. Courts of Inquiry(1) The appropriate government may, as occasion arises by notification in the Official Gazette, constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute.(2) A court may consist of one independent person or of such number of independent persons as the appropriate government maythink fit and where a court consists of two or more members, one of them shall be appointed as the Chairman.(3) A court, having the prescribed quorum, may act not with standing the absence of the Chairman or any of its members or anyvacancy in its number:PROVIDED that, if the appropriate government notifies the court that the services of the Chairman have ceased to be available, thecourt shall not act until a new Chairman has been appointed.

51[7. Labour Courts

(1) The appropriate government may, by notification in the Official Gazette, constitute one or more Labour Courts for the adjudicationof industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may beassigned to them under this Act.(2) A Labour Court shall consist of one person only to be appointed by the appropr iate government.(3) A person shall not be, qualified for appointment as the presiding officer of a Labour Court, unless-52[(a) he is, or has been, a judge of a High Court; or (b) he has, for a period of not less than three years, been a District Judge or an Additional District Judge; or]53[* * *]54[(d) he has held any judicial office in India for not less than seven years; or 54[(e)] he has been the presiding officer of a Labour Court constituted under any Provincial Act or State Act for not less than fiveyears.

7A. Tribunals(1) The appropriate government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for theadjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule 55[and for performing such other functions as may be assigned to them under this Act].(2) A Tribunal shall consist of one person only to be appointed by the appropriate government.(3) A person shall not be qualified for appointment as the presiding officer of a Tribunal unless-(a) he is, or has been, a Judge of a High Court; or 56[(aa) he has, for a period of not less than three-years, been a District judge or an Additional District Judge; 57[* * *]

(4) Th i t t if it thi k fit i t t t d i th T ib l i th di



(4) The appropriate government may, if it so thinks fit, appoint two persons as assessors to advise the Tribunal in the proceedingbefore it.7B. National Tribunals(1) The Central Government may, by notification in the Official Gazette, constitute one or more National Industrial Tribunals for theadjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such

disputes.(2) A National Tribunal shall consist of one person only to be appointed by the Central Government.(3) A person shall not be qualified for appointment as the presiding officer of a National Tribunal 58[unless he is, or has been, aJudge of a High Court.(4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the National Tribunal in theproceeding before it.7C. Disqualifications for the presiding off icers of Labour Courts, Tribunals and National TribunalsNo person shall be appointed to, or continue in, the office of the presiding officer of a Labour Court, Tribunal or National Tribunal, if-(a) he is not an independent person; or (b) he has attained the age of sixty-five years.]

60[CHAPTER II-A : NOTICE OF CHANGE

9A. Notice of changeNo employer, who proposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change,-(a) without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the changeproposed to be effected; or (b) within twenty-one days of giving such notice:PROVIDED that no notice shall be required for effecting any such change-(a) where the change is effected in pursuance of any 61[ settlement or award]; or (b) where the workmen likely to be affected by the change are persons to whom the Fundamental and Supplementary Rules, Civil

Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil ServicesRegulations, Civilians in Defence Services (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government in the Official Gazette, apply.]9B. Power of government to exemptWhere the appropriate government is of opinion that the application of the provisions of section 9A to any class of industrialestablishments or to any class of workmen employed in any industrial establishment affect the employers in relation thereto soprejudicially that such application may cause serious repercussion on the industry concerned and that public interest so requires, theappropriate government may, by notification in the Official Gazette, direct that the provisions of the said section shall not apply or

shall apply subject to such conditions as may be specified in the notification to that class of industrial establishments or to that class



shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or to that classof workmen employed in any industrial establishment.62[* * *]

CHAPTER IIIREFERENCE OF DISPUTES TO BOARDS, COURTS OR TRIBUNALS

10. Reference of disputes to Boards, courts or Tribunals(1) 63[Where the appropriate government is of opinion that any industrial dispute exists or is apprehended, it may at any time], byorder in writing-

(a) refer the dispute to a Board for promoting a settlement thereof; or

(b) refer any matter appearing to be connected with or relevant to the dispute to a court for inquiry; or

64[(c) refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, if it relates to any matter specified inthe Second Schedule, to a Labour Court for adjudication; or

(d) refer the dispute or any matter appearing to be connected with, or relevant to, the dispute , whether it relates to any matter specified in the Second Schedule or the Third Schedule, to a Tribunal for adjudication:PROVIDED that where the dispute relates to any matter specified in the Third Schedule and is not likely to affect more than onehundred workmen, the appropriate government may, if it so thinks fit, make the reference to a Labour Court under clause (c):]65[PROVIDED FURTHER that] where the dispute relates to a public utility service and a notice under section 22 has been given, theappropriate government shall, unless it considers that the notice has been frivolously or vexatiously given or that it would beinexpedient so to do. make a reference under this sub-section notwithstanding that any other proceedings under this Act in respect of the dispute may have commenced:66[PROVIDED ALSO that where the dispute in relation to which the Central Government is the appropriate government, it shall becompetent for that government to refer the dispute to a Labour Court or an Industrial Tribunal, as the case may be, constituted by theState Government]

67[(1A) Where the Central Government is of opinion that any industrial dispute exists or is apprehended and the dispute involves anyquestion of national importance or is of such a nature that industrial establishments situated in more than one State are likely to beinterested in, or affected by, such dispute and that the dispute should be adjudicated by a National Tribunal, then, the CentralGovernment may, whether or not it is the appropriate government in relation to that dispute, at any time, by order in writing, refer thedispute or any matter appearing to be connected with, or relevant to, the dispute, whether it relates to any matter specified in theSecond Schedule or the Third Schedule to a National Tribunal for adjudication.]

(2) Where the parties to an industrial dispute apply in the prescribed manner whether jointly or separately for a reference of the



(2) Where the parties to an industrial dispute apply in the prescribed manner, whether jointly or separately, for a reference of thedispute to a Board, court, 68[Labour Court, Tribunal or National Tribunal], the appropriate government, if satisfied that the personsapplying represent the majority of each party, shall make the reference accordingly.

29[(2A) An order referring an industrial dispute to a Labour Court, Tribunal or National Tribunal under this section shall specify theperiod within which such Labour Court, Tribunal or National Tribunal shall submit its award on such dispute to the appropriate

government:PROVIDED that where such industrial dispute is connected with an individual workman, no such period shall exceed three months:PROVIDED FURTHER that where the parties to an industrial dispute apply in the prescribed manner, whether jointly or separately, tothe Labour Court, Tribunal or National Tribunal for extension of such period or for any other reason, and the presiding officer of suchLabour Court, Tribunal or National Tribunal considers it necessary or expedient to extend such period, he may for reasons to berecorded in writing, extend such period by such further period as he may think fit:PROVIDED ALSO that in computing any period specified in this sub-section, the period, if any, for which the proceedings before theLabour Court, Tribunal or National Tribunal had been stayed by any injunction or order of a civil court shall be excluded:PROVIDED ALSO that no proceedings before a Labour Court, Tribunal or National Tribunal shall lapse merely on the ground thatany period specified under this sub-section had expired without such proceedings being completed.]

(3) Where an industrial dispute has been referred to a Board,68[Labour Court, Tribunal or National Tribunal] under this section, theappropriate Government may by order prohibit the continuance of any strike or lock-out in connection with such dispute which maybe in existence on the date of the reference.

34[ (4) Where in an order referring an industrial dispute to 68[a Labour Court, Tribunal or National Tribunal] under this section or in asubsequent order, the appropriate government has specified the points of dispute for adjudication, 68[the Labour Court or theTribunal or the National Tribunal, as the case may be,] shall confine its adjudication to those points and matters incidental thereto.

(5) Where a dispute concerning any establishment or establishments has been, or is to be, referred to a 69[Labour Court, Tribunal or National Tribunal] under this section and the appropriate government is of opinion, whether on an application made to it in this behalf or otherwise, that the dispute is of, such a nature that any other establishment, group or class of establishments of a similar nature is

likely to be interested in, or affected by, such dispute, the appropriate government may, at the time of making the reference or at anytime thereafter but before the submission of the award, include in that reference such establishment, group or class of establishments, whether or not at the time of such inclusion any dispute exists or is apprehended in that establishment, group or class of establishments.]

70[ (6) Where any reference has been made under sub-section (1A) to a National Tribunal, then notwithstanding anything containedin this Act, no Labour Court or Tribunal shall have jurisdiction to adjudicate upon any matter which is under adjudication before theNational Tribunal, and accordingly-

(a) if the matter under adjudication before the National Tribunal is pending in a proceeding before a Labour Court or Tribunal the



(a) if the matter under adjudication before the National Tribunal is pending in a proceeding before a Labour Court or Tribunal, theproceeding before the Labour Court or the Tribunal, as the case may be, insofar as it relates to such matter, shall be deemed to havebeen quashed on such reference to the National Tribunal; and

(b) it shall not be lawful for the appropriate government to refer the matter under adjudication before the National Tribunal to anyLabour Court or Tribunal for adjudication during the pendency of the proceeding in relation to such matter before the National

Tribunal.

18[Explanation: In this sub-section "Labour Court" or "Tribunal" includes any court or Tribunal or other authority constituted under anylaw relating to investigation and settlement of industrial disputes in force in any State.]

(7) Where any industrial dispute, in relation to which the Central Government is not the appropriate government, is referred to aNational Tribunal, then, notwithstanding anything contained in this Act, any reference in section 15, section 17, section 19, section33A, section 33B and section 36A to the appropriate government in relation to such dispute shall be construed as a reference to theCentral Government but, save as aforesaid and as otherwise expressly provided in this Act, any reference in any other provision of this Act to the appropriate government in relation to that dispute shall mean a reference to the State Government.]

29[(8) No proceedings pending before a Labour Court, Tribunal or National Tribunal in relation to an industrial dispute shall lapsemerely by reason of the death of any of the parties to the dispute being a workman, and such Labour Court, Tribunal or NationalTribunal shall complete such proceedings and submit its award to the appropriate government.]

70[10A. Voluntary reference of disputes to arbitration

(1) Where any industrial dispute exists or is apprehended and the employer and the workman agree to refer the dispute to arbitration,they may, at any time before the dispute has been referred under section 10 to a Labour Court or Tribunal or National Tribunal by awritten agreement, refer the dispute to arbitration and the reference shall be to such person or persons (including the presiding officer of a Labour Court or Tribunal, or National Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement.

71[(1A) Where an arbitration agreement provides for a reference of the dispute to an even number of arbitrators the agreement shallprovide for the appointment of another person as umpire who shall enter upon the reference, if the arbitrators are equally divided intheir opinion, and the award of the umpire shall prevail and shall be deemed to be the arbitration award for the purposes of this Act.]

(2) An arbitration agreement referred to in sub-section (1) shall be in such form and shall be signed by the parties thereto in suchmanner as may be prescribed.

(3) A copy of the arbitration agreement shall be forwarded to the appropriate government and the conciliation officer and the



(3) A copy of the arbitration agreement shall be forwarded to the appropriate government and the conciliation officer and theappropriate government shall, within 72[one month] from the date of the receipt of such copy, publish the same in the OfficialGazette.

71[(3A) Where an industrial dispute has been referred to arbitration and the appropriate government is satisfied that the personsmaking the reference represent the majority of each party, the appropriate government may, within the time referred to in sub-section

(3), issue a notification in such manner as maybe prescribed; and when any such notification is issued, the employers and workmenwho are not parties to the arbitration agreement but are concerned in the dispute, shall be given an opportunity of presenting their case before the arbitrator or arbitrators.]

(4) The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate government the arbitration award signed bythe arbitrator or all the arbitrators, as the case may be.

71[(4A) Where an industrial dispute has been referred to arbitration and a notification has been issued under sub-section (3A), theappropriate government may, by order, prohibit the continuance of any strike or lock-out in connection with such dispute whichmaybe in existence on the date of the reference.]

(5) Nothing in the Arbitration Act, 1940 (10 of 1940), shall apply to arbitrations under this section.]

CHAPTER IVPROCEDURE, POWERS AND DUTIES OF AUTHORITIES

11. Procedure and powers of conciliation officers, Board, courts and Tribunals and National Tribunals73[(1) Subject to any rules that may be made in this behalf, an arbitrator, a Board, court, Labour Court, Tribunal or National Tribunalshall follow such procedure as the arbitrator or other authority concerned may think fit.](2) A conciliation officer or a member of a board 74[or court or the presiding officer of a Labour Court, Tribunal or National Tribunal]may for the purpose of inquiry into any existing or apprehended industrial dispute, after giving reasonable notice, enter the premisesoccupied by any establishment to which the dispute relates.(3) Every Board, court, 75[Labour Court, Tribunal and National Tribunal] shall have the same powers as are vested in a Civil Courtunder the Code of Civil Procedure,1908 (5 or 1908), when trying a suit, in respect of the following matters, namely:-(a) enforcing the attendance of any person and examining him on oath;(b) compelling the production of documents and material objects;(c) issuing commissions for the examination of witnesses;(d) in respect of such other matters as may be prescribed,and every inquiry or investigation by a Board, court, 76[Labour Court, Tribunal or National Tribunal, shall be deemed to be a judicialproceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 to 1860).

(4) A conciliation officer 77[may enforce the attendance of any person for the purpose of examination of such person or call for] and



(4) A conciliation officer 77[may enforce the attendance of any person for the purpose of examination of such person or call for] andinspect any document which he has ground for considering to be relevant to the industrial dispute 78[or to be necessary for thepurpose of verifying the implementation of any award or carrying out any other duty imposed on him under this Act, and for theaforesaid purposes, the conciliation officer shall have the same powers as are vested in a civil court under the Code of CivilProcedure, 1908 (5 of 1908), 77[in respect of enforcing the attendance of any person and examining him or of compelling theproduction of documents]] .

79[(5) A court, Labour Court, Tribunal or National Tribunal may, if it so thinks fit, appoint one or more persons having specialknowledge of the matter under consideration as an assessor or assessors to advise it in the proceeding before it.(6) All conciliation officers, members of a Board or court and the presiding officers of a Labour Court, Tribunal or National Tribunalshall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).(7) Subject to any rules made under this Act the costs of, and incidental to, any proceeding before a Labour Court, Tribunal or National Tribunal shall be in the discretion of that Labour Court, Tribunal or National Tribunal, and the Labour Court, Tribunal or National Tribunal, as the case may be, shall have full power to determine by and to whom and to what extent and. subject to whatconditions, if any, such costs are to be paid, and to give all necessary directions for the purposes aforesaid and such costs may, onapplication made to the appropriate government by the person entitled, be recovered by that government in the same manner as anarrear of land revenue.]80[ (8) Every 81[Labour Court, Tribunal or National Tribunal] shall be deemed to be civil court for the purposes of 82[sections 345,

346, and 348 of the Code of Criminal Procedure, 1973 (2 of 1974).]83[11A. Powers of Labour Court Tribunal, and National Tribunal to give appropriate relief in case of discharge or dismissal of workmenWhere an industrial dispute relating to the discharge or dismissal of a workman has been referred to a Labour Court, Tribunal or National Tribunal for adjudication and, in the course of the adjudication proceedings, the Labour Court, Tribunal or National Tribunal,as the case may be, is satisfied that the order of discharge or dismissal was not justified, it may, by its award, set aside the order of discharge or dismissal and direct reinstatement of the workman on such terms and conditions, if any, as it thinks fit, or give suchother relief to the workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of thecase may require:PROVIDED that in any proceeding under this section the Labour Court, Tribunal or National Tribunal, as the case may be, shall relyonly on the materials on record and shall not take any fresh evidence in relation to the matter.]

12. Duties of conciliation officers(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utilityservice and a notice under section 22 has been given, shall, hold conciliation proceedings in the prescribed manner.(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the disputeand all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the

conciliation officer shall send a report thereof to the appropriate government 84[or an officer authorised in this behalf by the



conciliation officer shall send a report thereof to the appropriate government 84[or an officer authorised in this behalf by theappropriate government] together with a memorandum of the settlement signed by the parties to the dispute.(4) If no such settlement is arrived at , the conciliation officer shall, as soon as practicable after the close of the investigation, send tothe appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating tothe dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and thereasons on account of which, in his opinion, a settlement could not be arrived at.

(5) If, on a consideration of the report referred to in sub-section (4), the appropriate government is satisfied that there is a case for reference to a Board, 85[Labour Court, Tribunal or National Tribunal], it may make such reference. Where the appropriategovernment does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or withinsuch shorter period as may be fixed by the appropriate government:38[PROVIDED that, 18[subject to the approval of the conciliation officer,] the time for the submission of the report may be extendedby such period as may be agreed upon in writing by all the parties to the dispute.]

13. Duties of Board(1) Where a dispute has been referred to a Board under this Act, it shall be the duty of the Board to endeavour to bring about asettlement of the same and for this purpose the Board shall, in such manner as it thinks fit and without delay, investigate the dispute

and all matters affecting the merit and the right settlement thereof and may do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.(2) If a settlement of the dispute or of any of the matter in dispute is arrived at in the course of the conciliation proceedings, the Boardshall send a report thereof to the appropriate government together with a memorandum of the settlement signed by the parties to thedispute.(3) If no such settlement is arrived at, the Board shall, as soon as practicable after the close of the investigation, send to theappropriate government a full report setting forth the proceedings and steps taken by the Board for ascertaining the facts andcircumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts andcircumstances, its findings thereon, the reasons on account of which, in its opinion, a settlement could not be arrived at and itsrecommendations for the determination of the dispute.(4) If, on the receipt of a report under sub-section (3) in respect of a dispute relating to a public utility service, the appropriate

government does not make a reference to a 86[Labour Court, Tribunal or National Tribunal] under section 10, it shall record andcommunicate to the parties concerned its reasons therefor.(5) The Board shall submit its report under this section within two months of the date 87[on which the dispute was referred to it] or within such shorter period as may be fixed by the appropriate government:PROVIDED that the appropriate Government may from time to time extend the time for the submission of the report by such further periods not exceeding two months in the aggregate:PROVIDED FURTHER that the time for the submission of the report may be extended by such period as may be agreed on in writingby all the parties to the dispute.



14. Duties of courtsA court shall inquire into the matters referred to it and report thereon to the appropriate government ordinarily within a period of sixmonths from the commencement of its inquiry. 101[15. Duties of Labour Courts, Tribunals and National Tribunals

Where an industrial dispute has been referred to a Labour Court, Tribunal or National Tribunal for adjudication, it shall hold itsproceedings expeditiously and shall, 102[within the period specified in the order referring such industrial dispute or the further periodextended under the second proviso to sub-section (2A) of section 10], submit its award to the appropriate government.

16. Form of report or award(1) The report of a Board or court shall be in writing and shall be signed by all the members of the Board or court, as the case may be:PROVIDED that nothing in this section shall be deemed to prevent any member of the Board or court from recording any minute of dissent from a report or from any recommendation made therein.(2) The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by its presiding officer.

17.Publication of report and award(1) Every report of a Board or court together with any minute of dissent recorded therewith, every arbitration award and every awardof a Labour Court, Tribunal or National Tribunal shall, within a period of thirty days from the date of its receipt by the appropriategovernment, be published in such manner as the appropriate government thinks fit.(2) Subject to the provisions of section 17A, the award published under sub-section (1) shall be final and shall not be called inquestion by any court in any manner whatsoever.17A. Commencement of the award(1) An award (including an arbitration award) shall become enforceable on the expiry of thirty days from the date of its publicationunder section 17:PROVIDED that-(a) if the appropriate government is of opinion, in any case where the award has been given by a Labour Court or Tribunal in relation

to an industrial dispute to which it is a party; or (b) if the Central Government is of opinion, in any case where the award has been given by a National Tribunal,that it will be inexpedient on public grounds affecting national economy or social justice to give effect to the whole or any part of theaward, the appropriate government, or as the case may be, the Central Government may, by notification in the Official Gazette,declare that the award shall not become enforceable on the expiry of the said period of thirty days.(2) Where any declaration has been made in relation to an award under the proviso to sub-section (1), the appropriate government or the Central Government may, within ninety days from the date of publication of the award under section 17, make an order rejectingor modifying the award, and shall, on the first available opportunity, lay the award together with a copy of the order before the



case may be, lock-out in the public utility service, but the employer shall send intimation of such lock-out or strike on the day on



y , p y , p y ywhich it is declared, to such authority as may be specified by the appropriate government either generally or for a particular area or for a particular class of public utility services.(4) The notice of strike referred to in sub-section(l) shall be given by such number of persons to such person or persons and in suchmanner as maybe prescribed.(5) The notice of lock-out referred to in sub-section (2) shall be given in such manner as may be prescribed.

(6) If on any day an employer receives from any person employed by him any such notices as are referred to in sub-section (1) or gives to any person employed by him any such notices as are referred to in sub-section (2), he shall within five days thereof report tothe appropriate government or to such authority as that government may prescribe, the number of such notices received or given onthat day.

23. General prohibition of strikes and LockoutsNo workman who is employed in any industrial establishment shall go on strike in breach of contract and no employer of any suchworkman shall declare a lock-out-(a) during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;(b) during the pendency of proceedings before 122[a Labour Court, Tribunal or National Tribunal] and two months, after theconclusion of such proceedings; 123[* * *]

107[(bb) during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of suchproceedings, where a notification has been issued under sub-section (3A) of section l0A; or](c) during any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award.

24. Illegal strikes and Lockouts(1) A strike or lock-out shall be illegal if-(i) it is commenced or declared in contravention of section 22 or section 23; or (ii) it is continued in contravention of an order made under sub-section (3) of section 10 107[or sub-section (4A) of Section 10A].(2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of thereference of the dispute to a Board, 107[an arbitrator, a]117[Labour Court, Tribunal or National Tribunal], the continuance of such

strike or lock-out shall not be deemed to be illegal, provided that such strike or lock out was not at its commencement incontravention of the provisions of this Act or the continuance thereof was not prohibited under sub-section (3) of section 10 107[or sub-section (4A) of section 10A].(3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not bedeemed to be illegal.

25. Prohibition of financial aid to illegal strikes and LockoutsNo person shall knowingly expend or apply any money in direct furtherance or support of any illegal strike or lock-out.



establishment belonging to the same employer situate in the same town or village or situate within a radius of five miles from the



g g p y gestablishment to which he belongs, if, in the opinion of. the employer, such alternative employment does not call. for any special skillor previous experience and can be done by the workman, provided that the wages which would normally have been paid to theworkman are offered for the alternative employment also;(ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once aday;

(iii) if such laying-off is due to a strike or slowing-down of production on the part of workmen in another part of the establishment.25F. Conditions precedent to retrenchment of workmenNo workman employed in any industry who has been in continuous service for not less than one year under an employer shall beretrenched by that employer until-(a) the workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice hasexpired, or the workman has been paid in l ieu of such notice, wages for the period of the notice;129[* * *](b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ averagepay130[for every completed year of continuous service] or any part thereof in excess of six months; and (c) notice in the prescribedmanner is served on the appropriate government 107[for such authority as may be specified by the appropriate government bynotification in the Official Gazette].132[25FFA. Sixty days’ notice to be given of intention to close down any undertaking

(1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intendedclosure is to become effective, a notice, in the prescribed manner, on the appropriate government stating clearly the reasons for theintended closure of the undertaking:PROVIDED that nothing in this section shall apply to-(a) an undertaking in which-(i) less than fifty workmen are employed, or (ii) less than fifty workmen were employed on an average per working day in the preceding twelve months.(b) an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project.(2) Notwithstanding anything contained in sub-section (1), the appropriate government may, if it is satisfied that owing to suchexceptional circumstances as accident in the undertaking or death of the employer or the like, it is necessary so to do, by order,direct that provisions of sub-section (1) shall not apply in relation to such undertaking for such period as may be specified in the

order.]133[25FFF. Compensation to workmen in case of closing down of undertakings(1) Where an undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not lessthan one year in that undertaking immediately before such closure shall, subject to the provisions of sub-section (2), be entitled tonotice and compensation in accordance with the provisions of section 25F, 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 under clause (b) of section 25F, shall not exceed his average pay for three months:134[Explanation: An undertaking which is closed down by reason merely of-

(i) financial difficulties (including financial losses); or



(ii) accumulation of undisputed off stocks; or (iii) the expiry of the period of the lease or licence granted to it; or (iv) in case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which operations arecarried on,shall not be deemed to be closed down on account of unavoidable circumstances beyond the control of the employer within the

meaning of the proviso to this sub-section.]135[(1A) Notwithstanding anything contained in sub-section (1), where an undertaking engaged in mining operations is closed downby reason merely of exhaustion of the minerals in the area in which such operations are carried on, no workman referred to in thatsub-section shall be entitled to any notice or compensation in accordance with the provisions of section 25F, if-(a) the employer provides the workman with alternative employment with effect from the date of closure at the same remuneration ashe was entitled to receive, and on the same terms and conditions of service as were applicable to him, immediately before theclosure;(b) the service of the workman has not been interrupted by such alternative employment; and(c) the employer is , under the terms of such alternative employment or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by such alternativeemployment.

(1B) For the purposes of sub-sections (l) and (1A), the expressions "minerals" and "mining operations" shall have the meaningsrespectively assigned to them in clauses (a)and (d) of section 3 of the Mines and Minerals (Regulation and Development) Act, 1957(67 of 1957).](2) Where any undertaking set up for the construction of buildings, bridges, roads, canals, dams, or other construction work is closeddown on account of the completion of the work within two years from the date on which the undertaking had been set up, noworkman employed therein shall be entitled to any compensation under clause (b) of section 25F, but if the construction work is notso completed within two years, he shall be entitled to notice and compensation under that section for every 136[completed year of continuous service] or any part thereof in excess of six months].25G. Procedure for retrenchmentWhere any workman in an industrial establishment who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in that establishment, in the absence of any agreement between the employer and the workman in this behalf,

the employer shall ordinarily retrench the workman who was the last person to be employed in that category, unless for reasons to berecorded the employer retrenches any other workman.25H. Re-employment of retrenched workmenWhere any workmen are retrenched, and the employer proposes to take into his employ any persons, he shall, in such manner asmay be prescribed, give an opportunity 127[to the retrenched workmen who are citizens of India to offer themselves for re-employment, and such retrenched workmen] who offer themselves for re-employment shall have preference over other persons.25-I. Recovery of moneys due from employers under this Chapter [Repealed by the Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956 (36 of 1956), s. 19 w.e.f. 10th. March,

1957]



25J. Effect of laws inconsistent with this Chapter (1) The provisions of this Chapter shall have effect notwithstanding anything in consistent therewith contained in any other lawincluding standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946):137[PROVIDED that where under the provisions of any other Act or Rules, orders or notifications issued thereunder or under anystanding orders or any award, contract of service or otherwise, a workman is entitled to benefits in respect of any matter which are

more favourable to him than those to which he would be entitled under this Act; the workman shall continue to be entitled to the morefavourable benefits in respect of that matter, notwithstanding that he receives benefits in respect of other matters under this Act.](2) For the removal of doubts, it is hereby declared that nothing contained in this Chapter shall be deemed to affect the provisions of any other law for the time being in force in any State insofar as that law provides for the settlement of industrial disputes, but therights and liabilities of employers and workmen insofar as they relate to lay-off and retrenchment shall be determined in accordancewith the provisions of this Chapter.]

CHAPTER VSTRIKES AND LOCK-OUTS

138[CHAPTER V-B : SPECIAL PROVISIONS RELATING TO LAY-OFF, RETRENCHMENT AND CLOSURE IN CERTAIN

ESTABLISHMENTS

25K. Application of Chapter V-B(1) The provisions of this Chapter shall apply to an industrial establishment (not being an establishment of a seasonal character or inwhich work is performed only intermittently) in which not less than 139[one hundred] workmen were employed on an, average per working day for the preceding twelve months.(2) If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein onlyintermittently, the decision of the appropriate government thereon shall be final.

25L. DefinitionsFor the purposes of this Chapter,-

(a) "industrial establishment" means-(i) a factory as defined in clause (m) of section 2 of the Factories Act. 1948 (63 of 1948);(ii) a mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); or (iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);(b) notwithstanding anything contained in sub-clause (ii) of clause (a) of section 2,(i) in relation to any company in which not less than fifty-one percent of the paid-up share capital is held by the Central, Government,or

(ii) in relation to any corporation [not being a corporation referred to in sub-clause (i) of clause (a) of section 2] established by or



under any law made by Parliament, the Central Government shall be the appropriate government.

25M. Prohibition of lay-off (1) No workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrialestablishment to which this Chapter applies shall be laid-off by his employer except 140[with the prior permission of the appropriate

government or such authority as may be specified by that government by notification in the Official Gazette (hereafter in this sectionreferred to as the specified authority), obtained on an application made in this behalf, unless such lay-off is due to shortage of power or to natural calamity, and in the case of a mine, such lay-off is due also to fire, flood, excess of inflammable gas or explosion].141[ (2) An application for permission under sub-section (1) shall be made by the employer in the prescribed manner stating clearlythe reasons for the intended lay-off and a copy of such application shall also be served simultaneously on the workmen concerned inthe prescribed manner.(3) Where the workmen (other than badli workmen or casual workmen) of industrial establishment, being a mine, have been laid-off under sub-section (1) for reasons of fire, flood or excess of inflammable gas or explosion, the employer, in relation to suchestablishment, shall, within a period of thirty days from the date of commencement of such lay-off, apply, in the prescribed manner, tothe appropriate government or the specified authority for permission to continue the lay-off.(4) Where an application for permission under sub-section (1) or sub-section (3)has been made, the appropriate government or the

specified authority, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer,the workmen concerned and the persons interested in such lay-off, may, having regard to the genuineness and adequacy of thereasons for such lay-off, the interests of the workmen and all other relevant factors, by order and for reasons to be recorded inwriting, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen.(5) Where an application for permission under sub-section (1) or sub-section (3) has been made and the appropriate government or the specified authority does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on theexpiration of the said period of sixty days.(6) An order of the appropriate government or the specified authority granting or refusing to grant permission shall, subject to theprovisions of sub-section (7), be final and binding on all the parties concerned and shall remain in force for one year from the date of such order.

(7) The appropriate government or the specified authority may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (4) or refer the matter or, as the casemay be, cause it to be referred, to a Tribunal for adjudication:PROVIDED that where a reference has been made to a Tribunal under this sub-section, it shall pass an award within a period of thirty days from the date of such reference.(8) Where no application for permission under sub-section (1) is made, or where no application for permission under sub-section (3)is made within the period specified therein, or where the permission for any lay-off has been refused, such lay-off shall be deemed tobe illegal from the date on which the workmen had been laid-off and the workmen shall be entitled to all the benefits under any law

for the time being in force as if they had not been laid-off.(9) N t ith t di thi t i d i th f i i i f thi ti th i t t if it i ti fi d



(9) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate government may, if it is satisfiedthat owing to such exceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary soto do, by order, direct that the provisions of sub-section (1), or, as the case may be, sub-section (3) shall not apply in relation to suchestablishment for such period as may be specified in the order.]142[(10)] The provisions of section 25C (other than the second proviso thereto) shall apply to cases of lay-off referred to in this

section.Explanation : For the purposes of this section, a workman shall not be deemed to be laid-off by an employer if such employer offersany alternative employment (which in the opinion of the employer does not call for any special skill or previous experience and canbe done by the workman) in the same establishment from which he has been laid-off or in any other establishment belonging to thesame employer, situate in the same town or village, or situate within such distance from the establishment to which he belongs thatthe transfer will not involve undue hardship to the workman having regard to the facts and circumstances of his case, provided thatthe wages which would normally have been paid to the workman are offered for the alternative appointment also.

140[25N. Conditions precedent to retrenchment of workmen(1) No workman employed in any industrial establishment to which this Chapter applies , who has been in continuous service for notless than one year under an employer shall be retrenched by that employer until,

(a) the workman has been given three months’ notice in writing indicating the reasons for retrenchment and the period of notice hasexpired, or the workman has been paid in lieu of such notice, wages for the period of the notice; and (b) the prior permission of theappropriate government or such authority as may be specified by that government by notification in the Official Gazette (hereafter inthis section referred to as the specified authority) has been obtained on an application made in this behalf.(2) An application for permission under sub-section (1) shall be made by the employer in the prescribed manner stating clearly thereasons for the intended retrenchment and a copy of such application shall also be served simultaneously on the workmenconcerned in the prescribed manner.(3) Where an application for permission under sub-section(l) has been made, the appropriate government or the specified authority,after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmenconcerned and the persons interested in such retrenchment, may, having regard to the genuineness and adequacy of the reasonsstated by the employer, the interests of the workmen and all other relevant factors, by order and for reasons to be recorded in writing,

grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen.(4) Where an application for permission has been made under sub-section (l) and the appropriate government or the specifiedauthority does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days fromthe date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of thesaid period of sixty days.(5) An order of the appropriate government or the specified authority granting or refusing to grant permission shall, subject to theprovisions of sub-section (6), be final and binding on all the parties concerned and shall remain in force for one year from the date of such order.

(6) The appropriate government or the specified authority may, either on its own motion or on the application made by the employer k i it d ti f i t t i i d b ti (3) f th tt th



or any workman, review its order granting or refusing to grant permission under sub-section (3) or refer the matter or, as the casemay be, cause it to be referred to a Tribunal for adjudication:PROVIDED that where a reference has been made to a Tribunal under this sub-section, it shall pass an award within a period of thirty days from the date of such reference.(7) Where no application for permission under sub-section (1) is made, or where the permission for any retrenchment has been

refused, such retrenchment shall be deemed to be illegal from the date on which the notice of retrenchment was given to theworkman and the workman shall be entitled to all the benefits under any law for the time being in force as if no notice had been givento him.(8) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate government may, if it is satisfiedthat owing to such exceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary soto do, by order, direct that the provisions of sub-section (1) shall not apply in relation to such establishment for such period as may bespecified in the order.(9) Where permission for retrenchment has been granted under sub-section (3) or where permission for retrenchment is deemed tobe granted under sub-section (4), every workman who is employed in that establishment immediately before the date of applicationfor permission under this section shall be entitled to receive, at the time of retrenchment, compensation which shall be equivalent tofifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.]

102[25-O. Procedure for closing down an undertaking(1) An employer who intends to close down an undertaking of an industrial establishment to which this Chapter applies shall, in theprescribed manner, apply, for prior permission at least ninety days before the date on which the intended closure is to becomeeffective, to the appropriate government, stating clearly the reasons for the intended closure of the undertaking and a copy of suchapplication shall also be served simultaneously on the representatives of the workmen in the prescribed manner:PROVIDED that nothing in this sub-section shall apply to an undertaking set up for the construction of buildings, bridges, roads,canals, dams or for other construction work.(2) Where an application for permission has been made under sub-section(l),the appropriate government, after making such enquiryas it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen and the persons interested insuch closure may, having regards to the, genuineness and adequacy of the reasons stated by the employer, the interests of the

general public and all other relevant factors, by order. and for reasons to be recorded in writing, grant or refuse to grant suchpermission and a copy of such order shall be communicated to the employer and the workmen.(3) Where an application has been made under sub-section (1) and the appropriate government does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application ismade, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days.(4) An order of the appropriate government granting or refusing to grant permission shall, subject to the provisions of sub-section (5),be final and binding on all the parties and shall remain in force for one year from the date of such order.(5) The appropriate government may, either on its own motion or on the application made by the employer or any workman, review

its order granting or refusing to grant permission under sub-section (2) or refer the matter to a Tribunal for adjudication:PROVIDED th t h f h b d t T ib l d thi b ti it h ll d ithi i d f



PROVIDED that where a reference has been made to a Tribunal under this sub-section , it shall pass an award within a period of thirty days from the date of such reference.(6) Where no application for permission under sub-section (l) is made within the period specified therein, or where the permission for closure has been refused, the closure of the undertaking shall be deemed to be illegal from the date of closure and the workmenshall be entitled to all the benefits under any law for the time being in force as if the undertaking had not been closed down.

(7) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate government may, if it is satisfiedthat owing to such exceptional circumstances as accident in the undertaking or death of the employer or the like it is necessary so todo, by order, direct that the provisions of sub-section (1) shall not apply in relation to such undertaking for such period as may bespecified in the order.(8) Where an undertaking is permitted to be closed down under sub-section (2) or where permission for closure is deemed to begranted under sub-section (3), every workman who is employed in that undertaking immediately before the date of application for permission under this section, shall be entitled to receive compensation which shall be equivalent to fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months.]25P. Special provision as to restarting of undertakings closed down before commencement of the Industrial Disputes (Amendment) Act, 1976If the appropriate government is of opinion in respect of any undertaking of an industrial establishment to which this Chapter appliesand which closed down before the commencement of the Industrial Disputes (Amendment) Act, 1976 (32 of 1976),-

(a) that such undertaking was closed down otherwise than on account of unavoidable circumstances beyond the control of theemployer;(b) that there are possibilities of restarting the undertaking;(c) that is necessary for the rehabilitation of the workmen employed in such undertaking before its closure or for the maintenance of supplies and services essential to the life of the community to restart the undertaking or both; and(d) that the restarting of the undertaking will not result in hardship to the employer in relation to the undertaking,it may, after giving an opportunity to such employer and workmen, direct, by order published in the Official Gazette, that theundertaking shall be restarted within such time (not being less than one month from the date of the order ) as may be specified in theorder.

25Q. Penalty for lay-off and retrenchment without previous permission

Any employer who contravenes the provisions of section 25M or 143[* * *] section 25N shall be punishable with imprisonment for aterm which may extend to one month, or with fine which may extend to one thousand rupees, or with both.

25R. Penalty for closure(1) Any employer who closes down an undertaking without complying with the provisions of sub-section (1) of section 25-O shall bepunishable with imprisonment for a term which may extend to six months or with fine which may extend to five thousand rupees, or with both.(2) Any employer, who contravenes 102[an order refusing to grant permission to close down an undertaking under sub-section (2) of

section 25-O or a direction given under section 25P], shall be punishable with imprisonment for a term which may extend to one year,or with fine which may extend to five thousand rupees or with both and where the contravention is a continuing one with a further



or with fine which may extend to five thousand rupees, or with both, and where the contravention is a continuing one, with a further fine which may extend to two thousand rupees for every day during which the contravention continues after the conviction.144[* * *]

145[CHAPTER V-C : UNFAIR LABOUR PRACTICES

25T. Prohibition of unfair labour practiceNo employer or workman or a trade union, whether registered under the Trade Unions Act, 1926 (16 of 1926), or not, shall commitany unfair labour practice.

25U. Penalty for committing unfair labour practicesAny person who commits any unfair labour practice shall be punishable with imprisonment for a term which may extend to six monthsor with fine which may extend to one thousand rupees or with both.]

CHAPTER VI

PENALTIES

26. Penalty for illegal strikes and Lockouts(1) Any workman who commences, continues or otherwise acts in furtherance of, a strike which is illegal under this Act, shall bepunishable with imprisonment for a term which may extend to one month, or with fine which may extend to fifty rupees, or with both.(2) Any employer who commences, continues, or otherwise acts in furtherance of a lock-out which is illegal under this Act, shall bepunishable with imprisonment for a term which may extend to one month, or with fine which may extend to one thousand rupees, or with both.

27. Penalty for instigation, etc.

Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock-out which is illegalunder this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend toone thousand rupees, or with both.

28. Penalty for giving financial aid to illegal strikes and LockoutsAny person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall bepunishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

146[29 Penalty for breach of settlement or award



146[29. Penalty for breach of settlement or awardAny person who commits a breach of any term of any settlement or award, which is binding on him under this Act, shall bepunishable with imprisonment for a term which may extend to six months, or with fine, or with both, 147[and where the breach is acontinuing one, with a further fine which may extend to two hundred rupees for every day during which the breach continues after theconviction for the first] and the Court trying the offence, if it fines the offender, may direct that the whole or any part of the fine

realised from him shall be paid, by way of compensation, to any person who, in its opinion, has been injured by such breach.]

30. Penalty for disclosing Confidential informationAny person who wilfully discloses any such information as is referred to in section 21 in contravention of the provisions of that sectionshall, on complaint made by or on behalf of the trade union or individual business affected, be punishable with imprisonment for aterm which may extend to six months, or with fine which may extend to one thousand rupees, or with both.132[30A. Penalty for closure without noticeAny employer who closes down any undertaking without complying with the provisions of section 25FFA shall be punishable withimprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both.]

31. Penalty for other offences

(1) Any employer who contravenes the provisions of section 33 shall be punishable with imprisonment for a term which may extendto six months, or with fine which may extend to one thousand rupees, or with both,(2) Whoever contravenes any of the provisions of this Act or any rule made thereunder shall, if no other penalty is elsewhereprovided by or under this Act for such contravention, be punishable with fine which may extend to one hundred rupees.

162[THE FIRST SCHEDULE : INDUSTRIES WHICH MAY BE DECLARED TO BE PUBLIC UTILITY SERVICES UNDER SUB-CLAUSE (VI) OF CLAUSE (N) OF SECTION 2

[Section 2(n)(vi)]1. Transport (other than railways) for the carriage of passengers or goods, 163[by land or water].2.Banking.

3.Cement.4.Coal.5.Cotton textiles6.Foodstuffs7.Iron and Steel.8.Defence establishments.9.Service in hospitals and dispensaries.10.Fire Brigade Service.

11.India Government Mints.12 India Security Press



12.India Security Press.13.Copper Mining.14.Lead Mining.15Zinc Mining16 Iron Ore Mining.

17 Service in any oilfield.165[* ** ]19. Service in the Uranium Industry.20. Pyrites Mining Industry.21. Security Paper Mill, Hoshangabad.]]164[22. Service in the Bank Note Press, Dewas.23.Phosphorite Mining.24. Magnesite Mining.25. Currency Note Press.26. Manufacture or production of mineral oil (crude oil), motor and aviation spirit, diesel oil, kerosene oil, fuel oil, diverse hydrocarbonoils and their blends including synthetic fuels, lubricating oils and the like.

27. Service in the International Airports Authority of India.]166[28. Industrial establishment, manufacturing or producing nuclear fuel and components, heavy water and allied chemicals, andatomic energy.]

THE SECOND SCHEDULE : MATTERS WITHIN THE JURISDICTION OF LABOUR COURTS(Section 7)

1. The propriety or legality of an order passed by an employer under the standing orders;2. The application and interpretation of standing orders;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; and6. All matters other than those specified in the Third Schedule.

THE THIRD SCHEDULE : MATTERS WITHIN THE JURISDICTION OF INDUSTRIAL TRIBUNALS(Section 7A)

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;



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. Rationalisation;10. Retrenchment of workmen and closure of establishment; and11. Any other matter that may be prescribed.

THE FOURTH SCHEDULE : CONDITIONS OF SERVICE FOR CHANGE OF WHICH NOTICE IS TO BE GIVEN(Section 9A)

1. Wages, including the period and mode of payment;2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under anylaw for the time being in force;3. Compensatory and other allowances;

4. Hours of work and rest intervals;5. Leave with wages and holidays;6. Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders;7. Classification by grades;8. Withdrawal of any customary concession or privilege or change in usage.9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders;10.Rationalisation, standardization or improvement of plant or technique which is likely to lead to retrenchment of workmen;11. Any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or processor department or shift, 167[not occasioned by circumstances over which the employer has no control].

168[THE FIFTH SCHEDULE :UNFAIR LABOUR PRACTICES

[Section 2(ra)]

I. ON THE PART OF EMPLOYERS AND TRADE UNIONS OF EMPLOYERS(1) To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise, form, join or assist a trade union or toengage in concerted activities for the purposes of collective bargaining or other mutual aid or protection, that is to say.-(a) threatening workmen with discharge or dismissal, if they join a trade union;(b) threatening a lock-out or closure, if a trade union is organised;(c) granting wage increase to workmen at crucial periods of trade union organisation, with a view to undermining the efforts of the

trade union at organisation.(2) To dominate interfere with or contribute support financial or otherwise to any trade union that is to say



(2) To dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is to say,(a) an employer taking an active interest in organising a trade union of his workmen; and(b) an employer showing partiality or granting favour to one of several trade unions attempting to organise his workmen or to itsmembers, where such a trade union is not a recognised trade union.(3) To establish employer sponsored trade unions of workmen.

(4) To encourage or discourage membership in any trade union by discriminating against any workman, that is to say,(a) discharging or punishing a workman, because he urged other workmen to join or organise a trade union;(b) discharging or dismissing a workman for taking part in any strike (not being a strike which is deemed to be an illegal strike under this Act);(c) changing seniority rating or workmen because of trade union activities;(d) refusing to promote workmen of higher posts on account of their trade union activities;(e) giving unmerited promotions to certain workmen with a view to creating discord amongst other workmen, or to undermine thestrength of their trade union;(f) discharging office-bearers or active members of the trade union on account of their trade union activities.(5) To discharge or dismiss workmen-(a) by way of victimisation;

(b) not in good faith, but in the colourable exercise of the employer’s rights; (c) by falsely implicating a workman in a criminal case onfalse evidence or on concocted evidence;(d) for patently false reasons;(e) on untrue or trumped up allegations of absence without leave;(f) in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste;(g) for misconduct of a minor technical character, without having any regard to the nature of the particular misconduct or the pastrecord or service of the workman, thereby leading to a disproportionate punishment.(6) To abolish the work of a regular nature being done by workmen, and to give such work to contractors as a measure of breaking astrike.(7) To transfer a workman mala fide from one place to another, under the guise of following management policy.(8) To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to

resume work.(9) To show favouritism or partiality to one set of workers regardless of merit.(10) To employ workmen as "badlis", casuals or temporaries and to continue them as such for years, with the object of deprivingthem of the status and privileges of permanent workmen.(11) To discharge or discriminate against any workman for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute.(12) To recruit workman during a strike which is not an illegal strike.(13) Failure to implement award, settlement or agreement.

(14) To indulge in acts of force or violence.(15) To refuse to bargain collectively in good faith with the recognised trade unions



(15) To refuse to bargain collectively, in good faith with the recognised trade unions.(16) Proposing or continuing a lock-out deemed to be illegal under this Act.II. ON THE PART OF WORKMEN AND TRADE UNIONS OF WORKMEN(1) To advise or actively support or instigate any strike deemed to be illegal under this Act.(2) To coerce workmen in the exercise of their right to self-organisation or to join a trade union or refrain from, joining any trade

union, that is to say-(a) for a trade union or its members to picketing in such a manner that non-striking workmen are physically debarred from enteringthe work places;(b) to indulge in acts of force or violence or to hold out threats of intimidation in connection with a strike against non-striking workmenor against managerial staff.(3) For a recognised union to refuse to bargain collectively in good faith with the employer.(4) To indulge in coercive activities against certification of a bargaining representative.(5) To stage, encourage or instigate such forms of coercive actions as wilful, ,"go-slow", squatting on the work premises after workinghours or "gherao" of any of the members of the managerial or other staff.(6) To stage demonstrations at the residence of the employers or the managerial staff members.(7) To incite or indulge in wilful damage to employer’s property connected with the industry. (8) To indulge in acts of force or violence

or to hold out threats of intimidation against any workman with a view to prevent him from attending work.]

8] The Maternity Benefits Act, 1961

An Act to regulate the employment of women in certain establishments for certain periods before and after child-birth and toprovide for maternity benefit and certain other benefits.

2. Application of Act.- (1) It applies, in the first instance, to every establishment being a factory, mine or plantation including

any such establishment belonging to Government:

Provided that the State Government may, with the approval of the Central Government, after giving not less than two months'notice of its intention of so doing, by notification in the Official Gazette, declare that all or any of the provisions of this Act shallapply also to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise.

(2) Nothing contained in this Act shall apply to any factory or other establishment to which the provisions of the Employees'State Insurance Act, 1948, (34 of 1948) apply for the time being.



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



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

(n) "wages" means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes -

(1) such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitledto;

(2) incentive bonus; and

(3) the money value of the confessional supply of food grains and other articles, but does not include -

(I) any bonus other than incentive bonus;

(ii) over -time earnings an any deduction or payment made on account of fines;

(iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the womanunder any law for the time being in force; and

(iv) any gratuity payable on the termination of service;

(o) "woman" means a woman employed, whether directly or through any agency, for wages in any establishment.

4. Employment of, or work by, women prohibited during certain periods.- (1) No employer shall knowingly employ awoman in any establishment during the six weeks immediately following the day of her delivery or her miscarriage.

(2) No woman shall work in any establishment during the six weeks immediately following the day of her delivery or her

miscarriage.

(3) Without prejudice to the provisions of section 6, no pregnant woman shall, on a request being made by her in thisbehalf, be required by her employer to do during the period specified in subsection (4) any work which is of an arduousnature or which involves long hours o standing, or which is of an arduous nature or which involves long hours of standing,or which in any way is likely to interfere with her pregnancy or the normal development of the foetus, or is likely to causeher miscarriage or otherwise to adversely affect her health.

(4) The period referred to in sub-section (3) shall be -



(a) the period of one month immediately preceding the period of six weeks, before the date of her expected delivery;

(b) any period during the said period of six weeks for which the pregnant woman does not avail of leave of absence under section 6.

5. Right to payment of maternity benefit.- (1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actualabsence immediately preceding and including the day of her delivery and for the six weeks immediately following that day.

Explanation - For the purpose of this sub-section, the average daily wage means the average of the woman's wages payableto her for the days on which she has worked during the period of three calendar months immediately preceding the date fromwhich she absents herself on account of maternity, or one rupee a day, which ever is higher.

(2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of the employer fromwhom the claims maternity benefit, for a period of not less than one hundred and sixty days in the twelve months immediatelypreceding the date of her expected delivery:

Provided that the qualifying period of one hundred and sixty days aforesaid shall not apply to a woman who has immigratedinto she State of Assam and was pregnant at the time of the immigration.

Explanation. - For the purpose of calculating under this sub-section the days on which a woman has actually worked in theestablishment, the days for which she has been laid off during the period of twelve months immediately preceding the date of her expected delivery shall be taken into account.

(3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks, that is to say, sixweeks up to and including the day of her delivery and six weeks immediately following that day:

Provided that where a woman dies during this periods, the maternity benefit shall be payable only for the days up to andincluding the day of her death:

Provided further that where a woman, having been delivered of a child, dies during her delivery or during the period of sixweeks immediately following the date of her delivery, leaving behind in either case the child, the employer shall be liable for thematernity benefit case the child, the employer shall be liable for the maternity benefit for the entire period of six weeksimmediately following that day of her delivery but if the child also dies during the said period, then, for the days up to andincluding the day of the death of the child.

6. Notice of claim for maternity benefit and payment thereof.- (1) Any woman employed in an establishment and entitled tomaternity benefit under the provisions of this Act may give notice in writing in such form as may be prescribed, to her employer,



y p y g g y p p ystating that her maternity benefit and any other amount to which she may be entitled under this Act may be paid to her or to suchperson as she may nominate in the notice and that she will not work in any establishment during the period for which she receivesmaternity benefit.

(2) In the case of a woman who is pregnant, such notice shall state the date from which she will be absent from work, not being adate earlier than six weeks from the date of her expected delivery.

(3) Any woman who has not given the notice when she was pregnant may give such notice as soon as possible after the delivery.

(4) On receipt of the notice, the employer shall permit such woman absent herself from the establishment until the expiry of six weeksafter the day of her delivery.

(5) The amount of maternity benefit for the period preceding the date of her expected delivery shall be paid in advance by theemployer to the woman on production of such proof as may be prescribed that the woman is pregnant, and the amount due for thesubsequent period shall be paid by the employer to the woman within forty-eight hours of production of such proof as may beprescribed that the woman has been delivered of a child.

(6) The failure to give notice under this section shall not disentitle a woman to maternity benefit or any other amount under this Act if she is otherwise entitled to such benefit or amount and in any such case an Inspector may either of his own motion or on anapplication made to him by the woman, order the payment of such benefit or amount within such period as may be specified in theorder.

7. Payment of maternity benefit in case of death of a woman.- If a woman entitled to maternity benefit or any other amount under this Act, dies before receiving such maternity benefit or amount, or where the employer is liable for maternity benefit under thesecond proviso to sub-section (3) of section 5, the employer shall pay such benefit or amount to the person nominated by the womanin the notice given under section 6 and in case there is no such nominee, to her legal representative.

8. Payment of medical bonus.- Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer a medical bonus of twenty-five rupees, if no pre-natal confinement and post-natal care is provided for by the employer freeof charge.

9. Leave for miscarriage.- In case of miscarriage, a woman shall, on production of such proof as may be prescribed, be entitled toleave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage.

10. Leave for illness arising out of pregnancy, delivery, premature birth of child, or miscarriage.- A woman suffering fromillness arising out of pregnancy, delivery, premature birth of child or miscarriage shall, on production of such proof as may be



prescribed, be entitled, in addition to the period of absence allowed to her under section 6, or, as the case may be, under section 9,to leave with wages at the rate of maternity benefit for a maximum period of one month.

11. Nursing breaks.- Every woman delivered of a child who returns to duty after such delivery shall, in addition to the interval for rest

allowed to her, be allowed in the course of her daily work two breaks of the prescribed duration for nursing the child until the childattains the age of fifteen months.

12. Dismissal during absence of pregnancy.- (1) When a woman absents herself from work in accordance with the provisions of this Act, it shall be unlawful for her employer to discharge or dismiss her during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of theconditions of her service.

(2) (a) , The discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such discharge or dismissalwould have been entitled to maternity benefit or medical bonus referred to in section 8, shall not have the effect of depriving her of the maternity benefit or medical bonus:

Provided that where the dismissal is for any prescribed gross misconduct, the employer may, by order in writing communicated to thewoman, deprive her of the maternity benefit or medical bonus or both.

(b) Any woman deprived of maternity benefit or medical bonus or both, may, within sixty days from the date on which the order of such deprivation is communicated to her, appeal to such authority as may be prescribed, and the decision of that authority on suchappeal, whether the woman should or should not be deprived of maternity benefit or medical bonus or both, shall be final.

(c) Nothing contained in this sub-section shall affect the provisions contained in sub-section (1).

14. Appointment of Inspectors.- The appropriate Government may, by notification in the Official Gazette, appoint such

officers as it thinks fit to be Inspectors for the purposes of this Act and may define the local limits of the jurisdiction within whichthey shall exercise their functions under this Act.

15. Powers and duties of Inspectors.- An Inspector may, subject to such restrictions or condition as may be prescribed,exercise all or any of the following powers namely:-

(a) enter at all reasonable times with such assistants, if any, being persons in the service of the Government or any local or other public authority, as he thinks fit, any premises or place where women are employed or work is given to them in anestablishment, for the purposes of examining any registers, records and notices required to be kept or exhibited by or under





20. Registers, etc.- Every employer shall prepare and maintain such registers, records and muster-rolls and in such manner as maybe prescribed.

21. Penalty for contravention of Act by employer.- If any employer contravenes the provisions of this Act or the rules made

thereunder, he shall be punishable with imprisonment which may extend to three months, or with fine which may extend to fivehundred rupees, or with both; and where the contravention is of any provision regarding maternity benefit or regarding payment of any other amount and such maternity benefit or amount has not already been recovered, the court shall, in addition recover suchmaternity benefit or amount as if it were a fine and pay the same to the person entitled thereto.

22. Penalty for obstructing Inspector.- Whoever fails to produce on demand by the Inspector any register or document in hiscustody kept in pursuance of this Act or the rules made thereunder or conceals or prevents any person from appealing before or being examined by an Inspector shall be punishable with imprisonment which may extend to three months, or with fine which mayextend to five hundred rupees, or with both.

23. Cognizance of offences.- (1) No prosecution for an offence punishable under this Act or any rule made thereunder shall be

instituted after the expiry of one year from the date no such prosecution shall be instituted except by, or with the previous sanctionof , the Inspector:

Provided that in computing the period of one year aforesaid, the time, if any, taken for the purpose of obtaining such previoussanction shall be excluded.

(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the First Class shall try any such offence.

27. Effect of laws and agreements inconsistent with this Act.- (1) The provisions of this Act shall have effect notwithstandinganything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the coming into force of this Act:

Provided that where under any such award, agreement, contract o service or otherwise, a woman is entitled to benefits in respect of any matter which are more favourable to her than those to which she would be entitled under this Act, the woman shall continue tobe entitled to the more favourable benefits in respect of that matter, notwithstanding that she is entitled to receive benefits in respectof other matters under this Act.

(2) Nothing contained in this Act shall be construed to preclude a woman from entering into an agreement with her employer for

granting her rights or privileges in respect o any matter which are more favourable to her than those to which she would be entitledunder this Act.



9] The Trade Unions Act, 1926

Preamble [25th March, 1926]

An act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions

1. Short title, extent and commencement - (1) This Act may be called the [The words "India" has been deleted by the Trade Union(Amendment) Act 31 of 1964] Trade Unions Act,1926.

2. It extends to the Whole of India [Note:- The word "except" the State of Jammu and Kashmir" have been omitted by Act No.51 TheOrient Tavern 1970].

3. It shall come into force on such date as the Central Government by notification in the Official Gazette, appoint.

2. Definitions - In this act the appropriate Government means in relation to Trade Unions whose objects are not confined to oneState, the Central Government, and in relation to other Trade Unions State Government, and unless there is anything repugnant inthe subject or context,

(a) "Executive" means the body, by whatever name called to which the management of the affairs of a Trade Union is entrusted;

(b) [Subs. By Trade Unions (Amendment) Act 38 of 1964] In the case of a Trade Union, includes any member of the executivethereof, but does not include an auditor;

(c) "Prescribed" means prescribed by regulations made under this Act;

(d) "Registered office" means that office of a Trade Union which is registered under this Act as the Head office thereof.

(e) "Registered Trade Union" means a Trade Union registered under this Act;

(f) [Note: Subs. by Act 42 of 1960] "Registrar" means

(i) A Registrar of Trade Unions appointed by the appropriate Government under section 3, and includes an additional or DeputyR i t f T d U i d



Registrar of Trade Unions; and

(ii) In relation to any Trade Union, the Registrar appointed for the State in which the head or registered office, as the case may be, of the Trade Union is situated;

(a) "Trade dispute" means any dispute between employers and workmen or between workmen and workmen, or between employersand employers which is connected with the employment, or non-employment, or the terms of employment or the conditions of labour,of any person, and "workmen" means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises; and

(b) "Trade Union" means combination, whether temporary or permanent, formed primarily for the purpose of regulating the relationsbetween workmen and employers or between workmen and workmen, or between employers and employers, or for imposingrestrictive condition on the conduct of any trade or business, and includes any federation of two or more Trade Unions;

Provided that this Act shall not affect -

(c) Any agreement between partner to their own business;

(i) Any agreement between an employer and those employed by him as to such employment; or

(ii) Any agreement in consideration of the sales of the goodwill of a business or of instruction in any profession, trade or handicraft.

3. Appointment of Registrars - (1) [The appropriate Government] shall appoint a person to be the Registrar of Trade Unions for [each] (State)].

(2) [Note: The principal section re-numbered as sub-section (1) and sub-section (2) inserted by Act 48 of 1960] The appropriate

Government may appoint as many Additional and Deputy Registrars of Trade Unions as it thinks fit for the purpose of exercising anddischarging, under the superintendence and direction of the Registrar, such powers and functions of the Registrar under this Act as itmay, be order, specify and define the local limits within which any such Additional or Deputy Registrar shall exercise and dischargethe powers and function so specified.

(3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy Registrar exercises and dischargesthe powers and function of a Registrar in an area within which the registered office of a Trade Union is situated, the Additional or Deputy Registrar shall be deemed to be Registrar in relation to the Trade Union for the purposes of this Act.



(d) The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the [Subs. byTrade Unions (Amendment) Act No.33 of 1954] and members of the Trade Union;



(e) The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the TradeUnion is connected, and also the admission of the number of honorary or temporary members as [Subs. by Trade Unions(Amendment) Act No.33 of 1954] required under Section 22 to form the executive of the Trade Union;

(ae) [Ins. by Act 42 of 1960] The payment of a subscription by members of the Trade Union which shall be not less than twenty fivenaye paise per month per member;

(a) The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on members;

(b) The manner in which the member shall be amended, varied or rescinded;

(c) The manner in which the members of the executive and the other [Subs. by Trade Unions (Amendment) Act No.33 of 1954] of theTrade Union shall be appointed and removed;

(d) The safe custody of the funds of the Trade Union, and annual audit, in such manner as may be prescribed, of the account booksby [Subs. by Trade Unions (Amendment) Act No.33 of 1954] and members of the Trade Union; and

(e) The manner in which the Trade Union may be dissolved.

7. Power to call for further particulars and to require alteration of name - (1) The Registrar may call for further information for the purpose of satisfying himself that any application complies with the provisions of Sec; 5, or that the Trade Union is entitled toregistration under Section 6, and may refuse to register the Trade Union until such information is supplied.

(2) If the name under which a Trade Union is proposed to be registered is identical with that by which any other existing Trade Union

has been registered or, in the opinion of the Registrar, so nearly resemble such name as to be likely to deceive the public or themembers of either Trade Union, the Registrar shall require the persons applying for registration to alter the name of the Trade Unionstated in the application, and shall refuse to register the Union until such alteration has been made.

8. Registration - The Registrar, on being satisfied that the Union has complied with all the requirements of this Act in regard toregistration, shall register the Trade Union by entering in a register to be maintained in such form as may be prescribed, theparticulars relating to the Trade Union contained in the statement accompanying the application for Registration.

9. Certificate of Registration - The Registrar registering a Trade Union under Section 8, shall issue a certificate of registration in theprescribed form which shall be conclusive that the Trade Union has been duly registered under this Act.



10. Cancellation of Registration - A certificate of registration of a Trade Union may be withdrawn o cancelled by the Registrar -

(a) On the application of the Trade Union to be verified in such manner as may be prescribed, or

(b) If the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to existor has willfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force whichis inconsistent with any such provision, or has rescinded any rule providing for any matter, provision for which is required by Section6:

Provided that not less than two months previous notice in writing specifying the ground on which it is proposed to withdraw or cancelthe certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on theapplication of the Trade Union.

11. Appeal - (1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation

of a certificate of registration may, within such period as may be prescribed, appeal -

(a) Where the head office of the Trade Union is situated within the limits of Presidency-town to the High Court, or

(b) Where the head office is situated in any outer area, to such Court, not inferior to the Court of an additional or assistant Judge of aprincipal Civil Court of original jurisdiction, as the [appropriate Government] may appoint in this behalf for that area.

(2) The Appellate Court may dismiss the appeal, or pass an order directing the Registrar to register the Union and to issue acertificate of registration under the provisions of Section 9 or setting aside the order for withdrawal or cancellation of the certificate,as the case may be, and the registrar shall comply with such order.

(3) For the purpose of an appeal under sub-section (1) an Appellate Court shall, so far as may be, follow the same procedure andhave the same powers as it follows an has when trying a suit under the Code of Civil Procedure, 1908, and may direct by whom thewhole or any part of the costs of the appeal shall be paid an such costs shall be recovered as if they had been awarded in a suitunder the said Code.

(4) In the event of the dismissal of an appeal by any Court appointed under clause (b) of sub-section (1), the person aggrieved shallhave a right of appeal to the High Court and the High Court shall, for the purpose of such appeal, have all the powers of an AppellateCourt under sub-sections (2) and (3) and the provisions of those sub-section shall apply accordingly.]

12. Registered office - All communications and notice to a registered Trade Union may be addressed to its registered office. Noticeof any change in the address of the head office shall be given with fourteen days of such change to the Registrar in writing, and thechanged address shall be recorded in the register referred to in Section 8



changed address shall be recorded in the register referred to in Section 8.

13. Incorporation of registered Trade Unions - Every registered Trade Union shall be a body corporate by the name under which itis registered and shall have perpetual succession and a common seal with power to acquire and hold both movable and immovableproperty an contract, and shall, by the said name sues and be sued.

14. Certain Acts not to apply to registered Trade Unions - The following Act, namely -

(a) The Societies Registration At, 1863.

(b) The co-operative Societies Act, 1912.And

(c) [(Note: See now the Companies Act, 1957 (1 of 1956), vide Act (42 of 1960) The Companies Act, 1956 (1 of 1956)]

shall not apply to any registered Trade Union, had the registration of any such Trade Union under any such Act shall be void.

15. Objects on which general funds may be spent - The general funds of a registered Trade Union shall not be spent on any other objects than the following, namely:-

(a) The payment of salaries, allowances and expenses to (Note: Subs. by Act No.38 of 1964 for the word) "officers" office bearers of the Trade Union;

(b) The payment of expenses for the administration of the Trade Union including audit of the accounts of the general funds of theTrade Union;

(c) The prosecution of defence of any legal proceeding to which the Trade Union or any member thereof is a party, when suchprosecution or defence is undertaken for thee purpose of securing or protecting any rights of the Trade Union as such or any rightsarising out of the relations of any member with his employer or with a person whom the member employs;

(d) Thee conduct of trade disputes on behalf of the Trade Union or any member thereof;

(e) The compensation of members for loss arising out of trade disputes;

(f) Allowance to members or their dependants on account of death, old age, sickness, accidents or unemployment of such members;

(g) The issue of or the undertaking of liability under policies of assurance on the lives for members or under policies insuring



(g) The issue of, or the undertaking of liability under policies of assurance on the lives for members or under policies insuringmembers against sickness, accident or unemployment;

(h) The provision of educational, social or religious benefits for members (including the payment of the expenses of funeral or

religious ceremonies for deceased members) or for the dependants of members;

(i) The upkeep of a periodical published mainly for the purposes of discussing questions affecting employers or workmen as such;

(j) The payment, in furtherance of any of the objects on which the general funds of the Trade Union may be spent, of contributions toany cause intended to benefit workmen in general, provided that the expenditure in respect of such contributions in any financial year shall not, at any time, during that year be in excess of one-fourth of the combined total of the gross income which has up to that timeaccrued to the general funds of the Trade Union during that year and of the balance at the credit of those funds at thecommencement of that year; and

(k) Subject to any conditions contained in the notification, any other object notified by the [appropriate Government] in the official

Gazette.

16. Constitution of a separate fund for political purposes - (1) A registered Trade Union may constitute a separate fund, fromcontributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic andpolitical interest of its members, in furtherance of any of the objects specified in sub-section (2).

(2) The objects referred to in sub-section (1) are:-

(a) The payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as amember of any legislative body constituted under [Note: Deleted by Act 42 of 1960] the Constitution or of any local authority, before,during or after the election in connection with his candidature or election; or

(b) The holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospectivecandidate; or

(c) The maintenance of any person who is a member of any legislative body constituted under [Note: Deleted by Act 42 of 1960] theConstitution or for any local authority; or

(d) The registration of electors or the selection of a candidate for any legislative body constituted under [Inserted by Act No.51 of 1970] the Constitution or for any local authority; or



(e) The holding of political meetings of any kind or the distribution of political literature or political documents of any kind.

[(Note: Inserted by Act No.51 of 1970) (2-A) In its application to the State of Jammu and Kashmir references in sub-section (2) to any

legislative body constituted under the Constitution shall be construed as including references to the Legislative of that State].

(3) No member shall be compelled to contribute to the fund constituted under sub-section (2), and a member who does not contributeto the said fund shall not be excluded from any benefits of the Trade Union, or placed in any respect either directly or indirectly under any disability r at any disadvantage as compared with other members of the Trade Union (except in relation to the control of management of the said fund) by reason of his contributing to the said fund; and contribution to the said fund shall not be made acondition for admission to the Trade Union.

17. Criminal conspiracy in trade disputes - No officers or members of a registered Trade union shall be liable to punishment under sub-section (2) of Section 120-B of the Indian Penal Code, in respect of any agreement made between the members for the purposeof furthering any such object of the Trade Union as is specified in Section 15 unless the agreement is an agreement to commit an

offence.

18. Immunity from civil suit to certain cases - (1) No suit or other legal proceeding shall be maintainable in any Civil Court againstany registered Trade Union or any [Note: Inserted by Act No.51 of 1970] or member thereof in respect of any act done incontemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground only that such actinduces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital of his labour as he wills.

(2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortuous actdone in contemplation or furtherance of a trade dispute by and agent of the Trade Union if it is proved that such person acted withoutthe knowledge of, or contrary to, express instructions given by the executive of the Trade Union.

20. Right to inspect books of Trade Union - The account books of a registered Trade Union and the list of members thereof shallbe open to inspection by an [Note: Substituted by Trade Unions (Amendment) Act No.38 of 1964] or member of the Trade Union atsuch times as may be provided for in the rules of Trade Union.

21. Rights of minors to membership of Trade Union - Any person who has attained the age of fifteen years may be a member of registered Trade Union subject to any rules of the Trade Union to the contrary, and may, subject as aforesaid, enjoy all the rights of amember and execute all instruments an give all acquaintances necessary to be executed or given under the rules:

21A. Disqualification of office bearers of Trade Union - (1) A person shall be disqualified for being chosen as, and for being amember of the executive or any other office-bearer or registered Trade Union if-



(i) He has not attained the age of eighteen years;

(ii) He has been convicted by a Court in India of any offence involving moral turpitude and sentenced to imprisonment, unless aperiod of five years has elapsed since his release.

(2) Any member of the executive or other office-bearer of a registered Trade Union who, before the commencement of the IndianTrade Union (Amendment) Act, 1964, has been convicted of any offence involving moral turpitude and sentenced to imprisonmentshall on the date of such commencement, cease to be such member or office-bearer unless a period of five years has elapsed sincehis release before the date].

(3) [(Note: Ins. by Act No.51 of 1970) In its application to the State of Jammu and Kashmir references in sub-section (2) to anylegislative body constituted under the Constitution shall be construed as including references to the Legislature of that State].

22. Proportion of office-bearers to be concerned with the industry - Not less than one half of the total number of the [Subs. by

Trade Unions (Amendment) Act No.31 of 1964] of every registered Trade Union shall be persons actually engaged in an industrywith which the Trade Union is convicted.

Provided that the (appropriate Government) may, by special or general order declare that the provisions of this section shall notapply to any Trade Union or class of Trade Unions specified in the order.

23. Change of name - Any registered Trade Union may, with the consent of not less than two-thirds of the total number of itsmembers and subject to the provisions of Section 25 change its name.

24. Amalgamation of Trade Union - Any two or more registered Trade Unions may become amalgamated together as one TradeUnion with or without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the votes of at

least one-half of the members of each or every such Trade Union entitled to vote are recorded, and that at least sixty percent of thevotes recorded are in favour of the proposal.

25. Notice of change of name or amalgamations - (1) Notice in writing of every change of name and every amalgamation, signed,in the case of change of name, by the Secretary an by seven members of the Trade Union changing its name and in the case of anamalgamation by the Secretary and by seven members of each and every Trade Union which is a party thereto, shall be sent to theRegistrar, and where head office of the amalgamated Trade Union is situated in a different (State), to the Registrar of such (State).



(2) Trade Union during the year which the general statement refers, together also with copy of the rules of the Trade Union correctedupto the date of the dispatch thereof to the Registrar.



(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of making of the alteration.

(4) [Note: Added by Act 42 of 1960] For the purpose of examining the documents referred to in subsections (1), (2) and (3), theRegistrar, or any officer authorized by him, by general or special order may, at all reasonable times, inspect the certificate of registration account books, registers, and other documents relating to a Trade Union, at its registered office or may require their production at such place as he may specify in this behalf, but no such place shall be at a distance of more then ten miles from theregistered office of a Trade Union.

31. Failure to submit returns - (1) If default is made on the part of any registered Trade Union in giving any notice or sending anystatement or other document as required by or under any provision of this Act, every (office-bearer) or other person bound by therules of the Trade Union to give or send the same or if there is no such [Subs. by Trade Unions (Amendment) Act No.38 of 1961] or

person, every member of the executive of the Trade Union, shall be punishable with fine which may extend to five rupees and in thecase of a continuing default, with an additional fine which may extend to five rupees for each week after the first during which thedefault continues:

Provided that the aggregate fine shall not exceed fifty rupees.

(2) Any person who willfully makes, or causes to be made, any false entry in, or any omission from the general statement required bysection 28, or in or form any copy of rules or of alterations of rules sent to the Registrar under that Section, shall be punishable withfine which may extend to five hundred rupees.

32. Supplying false information regarding Trade Union - Any person who, wit intent to deceive, gives to any member of a

registered Trade Union or to any document purporting or applying to become a member of such Trade Union, any documentpurporting to be a copy of the rules of the Trade Union or of any alterations to the same which he knows, or has reason to believe, isnot a correct copy of such rules or alterations as are for the time being in force, or any person who, with the like intent gives a copy of any rules of an unregistered Trade Union to any person on the pretence that such rules are the rules of a registered Trade Union,shall be punishable with fine which may extend to two hundred rupees.

33. Cognizance of offence - (1) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try anyoffence under this Act.

(2) No court shall take cognizance of any offence under this Act unless complaint thereof has been made by or with the previoussanction 32, by the person to whom the copy was given, within six months of the date on which the offence is alleged to have beencommitted.



10] The Payment of Gratuity Act, 1972

PREAMBLE [39 OF 1972]

An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports,railway companies, shops or other establishments and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Twenty-third Year of Republic of India as follows :-

1. SHORT TITLE, EXTENT, APPLICATION AND COMMENCEMENT. - (1) This Act may be called the Payment of Gratuity Act,1972.

(2) It extends to the whole of India : Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.

(3) It shall apply to - (a) every factory, mine, oilfield, plantation, port and railway company;

(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in aState, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;

(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on anyday of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.

(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding thatthe number of persons employed therein at any time after it has become so applicable falls below ten.

(4) It shall come into force on such date as the Central Government may, by notification, appoint.

2. DEFINITIONS. - In this Act, unless the context otherwise requires, - (a) "appropriate Government" means, - (i) in relation to anestablishment - (a) belonging to, or under the control of, the Central Government,



(b) having branches in more than one State,

(c) of a factory belonging to, or under the control of, the Central Government,

(d) of a major port, mine, oilfield or railway company, the Central Government, (ii) in any other case, the State Government;

(b) "completed year of service" means continuous service for one year;

(c) "continuous service" means continuous service as defined in section 2A;

(d) "controlling authority" means an authority appointed by the appropriate Government under section 3;

(e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield,plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work,

whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a StateGovernment and is governed by any other Act or by any rules providing for payment of gratuity.

Explanation : (f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop -(i) belonging to, or under the control of, the Central Government or a State Government, a person or authority appointed by theappropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, thehead of the Ministry or the Department concerned,

(ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive office of the local authority,

(iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory,mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether calleda manager, managing director or by any other name, such person;

(g) "factory" has the meaning assigned to it in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);

(h) "family", in relation to an employee, shall be deemed to consist of - (i) in the case of a male employee, himself, his wife, hischildren, whether married or unmarried, his dependent parents and the dependent parents of his wife and the widow and children of his predeceased son, if any,



(ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents andthe dependent parents of her husband and the widow and children of her predeceased son, if any :

Explanation : Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shallbe deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is,under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of theemployee;

(i) "major port" has the meaning assigned to it in clause (8) of section 3 of the Indian Ports Act, 1908 (15 of 1908);

(j) "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);

(k) "notification" means a notification published in the Official Gazette;

(l) "oilfield" has the meaning assigned to it in clause (e) of section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948);

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

(n) "port" has the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908 (15 of 1908);

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

(p) "railway company" has the meaning assigned to it in clause (5) of section 3 of the Indian Railways Act, 1890 (9 of 1890);

(q) "retirement" means termination of the service of an employee otherwise than on superannuation;

(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;

(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms andconditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does notinclude any bonus, commission, house rent allowance, overtime wages and any other allowance.



2A. CONTINUOUS SERVICE. - For the purposes of this Act, - (1) an employee shall be said to be in continuous service for a periodif he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident,leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service hasbeen passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strikeor a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service wasrendered before or after the commencement of this Act.

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within themeaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference towhich calculation is to be made, has actually worked under the employer for not less than - (i) one hundred and ninety days, in thecase of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference towhich the calculation is to be made, has actually worked under the employer for not less than - (i) ninety-five days, in the case of anemployee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case;

Explanation : For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shallinclude the days on which - (i) he has been laid-off under an agreement or as permitted by standing orders made under the IndustrialEmployment (Standing Order's) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;

(ii) he has been on leave with full wages, earned in the previous year;

(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and

(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does notexceed twelve weeks.

(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for anyperiod of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he hasactually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during



such period.

3. CONTROLLING AUTHORITY. - The appropriate Government may, by notification, appoint any officer to be a controlling authority,who shall be responsible for the administration of this Act and different controlling authorities may be appointed for different areas.

4. PAYMENT OF GRATUITY.- (1) Gratuity shall be payable to an employee on the termination of his employment after he hasrendered continuous service for not less than five years, - (a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease : Provided that the completion of continuous service of five years shall notbe necessary where the termination of the employment of any employee is due to death or disablement :

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination

has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with thecontrolling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may beprescribed, until such minor attains majority.

Explanation : For the purposes of this section, disablement means such disablement as incapacitates an employee for the workwhich he was capable of performing before the accident or disease resulting in such disablement.

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at therate of fifteen days' wages based on the rate of wages last drawn by the employee concerned : Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three monthsimmediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be

taken into account :

Provided further that in the case of an employee who is employed in a seasonal establishment and who is not so employedthroughout the year, the employer shall pay the gratuity at the rate of seven days' wages for each season.

Explanation : In the case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.

(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his



wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.

(6) Notwithstanding anything contained in sub-section (1), - (a) the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall beforfeited to the extent of the damage or loss so caused.

(b) the gratuity payable to an employee may be wholly or partially forfeited - (i) if the services of such employee have beenterminated for his riotous or disorderly conduct or any other act of violence on his part, or

(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided

that such offence is committed by him in the course of his employment.

4A. COMPULSORY INSURANCE. - (1) With effect from such date as may be notified by the appropriate Government in this behalf,every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a StateGovernment, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life InsuranceCorporation of India Act, 1956 (31 of 1956) or any other prescribed insurer : Provided that different dates may be appointed for different establishments or class of establishments or for different areas.

(2) The appropriate Government may, subject to such conditions as may be prescribed, exempt every employer who had alreadyestablished an approved gratuity fund in respect of his employees and who desires to continue such arrangement, and every

employer employing five hundred or more persons who establishes an approved gratuity fund in the manner prescribed from theprovisions of sub-section (1).

(3) For the purpose of effectively implementing the provisions of this section, every employer shall within such time as may beprescribed get his establishment registered with the controlling authority in the prescribed manner and no employer shall beregistered under the provisions of this section unless he has taken an insurance referred to in sub-section (1) or has established anapproved gratuity fund referred to in sub-section (2).

(4) The appropriate Government may, by notification, make rules to give effect to the provisions of this section and such rules mayprovide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the controlling authority of the amount of the gratuity payable to an employee from the Life Insurance Corporation of India or any other insurer with whom ani h b t k d b ti (1) th b th B d f T t f th d t it f d



insurance has been taken under sub-section (1), or as the case may be, the Board of Trustees of the approved gratuity fund.

(5) Where an employer fails to make any payment by way of premium to the insurance referred to in sub-section (1) or by way of contribution to an approved gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of gratuity due under this

Act (including interest, if any, for delayed payments) forthwith to the controlling authority.

(6) Whoever contravenes the provisions of sub-section (5) shall be punishable with fine which may extend to ten thousand rupeesand in the case of a continuing offence with a further fine which may extend to one thousand rupees for each day during which theoffence continues.

Explanation : In this section "approved gratuity fund" shall have the same meaning as in clause (5) of section 2 of the Income-tax Act,1961 (43 of 1961).

6. NOMINATION. - (1) Each employee, who has completed one year of service, shall make, within such time, in such form and in

such manner, as may be prescribed, nomination for the purpose of the second proviso to sub-section (1) of section 4.

(2) An employee may in his nomination, distribute the amount of gratuity payable to him, under this Act amongst more than onenominee.

(3) If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more membersof his family, and any nomination made by such employee in favour of a person who is not a member of his family, shall be void.

(4) If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shallmake, within such time as may be prescribed, a fresh nomination in favour of one or more members of his family.

(5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified by an employee at any time, after giving tohis employer a written notice in such form and in such manner as may be prescribed, of his intention to do so.

(6) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a freshnomination, in the prescribed form, in respect of such interest.

(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to hisemployer, who shall keep the same in his safe custody.

7 DETERMINATION OF THE AMOUNT OF GRATUITY (1) A h i li ibl f t f t it d thi A t



7. DETERMINATION OF THE AMOUNT OF GRATUITY. - (1) A person who is eligible for payment of gratuity under this Act or anyperson authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form,as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to thecontrolling authority specifying the amount of gratuity so determined.

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person towhom the gratuity is payable.

(3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3),the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at suchrate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that

Government may, by notification specify : Provided that no such interest shall be payable if the delay in the payment is due to thefault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment onthis ground.

(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claimof, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shalldeposit with the controlling authority such amount as he admits to be payable by him as gratuity.

(b) Where there is a dispute with regard to any matter or matters specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.

(c) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard,determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, thecontrolling authority shall direct the employer to pay such amount or, as the case may be, such amount as reduced by the amountalready deposited by the employer.

(d) The controlling authority shall pay the amount deposited, including the excess amount, if any, deposited by the employer, to theperson entitled thereto.

(e) As soon as may be after a deposit is made under clause (a), the controlling authority shall pay the amount of the deposit - (i) tothe applicant where he is the employee; or

(ii) h th li t i t th l t th i th b th di f h i h i f th



(ii) where the applicant is not the employee, to the nominee or, as the case may be, the guardian of such nominee or heir of theemployee if the controlling authority is satisfied that there is no dispute as to the right of the applicant to receive the amount of gratuity.

(5) For the purpose of conducting an inquiry under sub-section (4), the controlling authority shall have the same powers as arevested in a court, while trying a suit, under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters,namely :- (a) enforcing the attendance of any person or examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses.

(6) Any inquiry under this section shall be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code, 1860 (45 of 1860).

(7) Any person aggrieved by an order under sub-section (4) may, within sixty days from the date of the receipt of the order, prefer anappeal to the appropriate Government or such other authority as may be specified by the appropriate Government in this behalf :Provided that the appropriate Government or the appellate authority, as the case may be, may, if it is satisfied that the appellant wasprevented by sufficient cause from preferring the appeal within the said period of sixty days, extend the said period by a further period of sixty days.

Provided further that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the appellant either produces a certificate of the controlling authority to the effect that the appellant has deposited with him an amount equal to the

amount of gratuity required to be deposited under sub-section (4), or deposits with the appellate authority such amount.

(8) The appropriate Government or the appellate authority, as the case may be, may, after giving the parties to the appeal areasonable opportunity of being heard, confirm, modify or reverse the decision of the controlling authority.

7A. INSPECTORS. - (1) The appropriate Government may, by notification, appoint as many Inspectors, as it deems fit, for thepurposes of this Act.

(2) The appropriate Government may, by general or special order, define the area to which the authority of an Inspector so appointedshall extend and where two or more Inspectors are appointed for the same area, also provide, by such order, for the distribution or allocation of work to be performed by them under this Act.



(3) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860).

7B. POWERS OF INSPECTORS. - (1) Subject to any rules made by the appropriate Government in this behalf, an Inspector may, for the purpose of ascertaining whether any of the provisions of this Act or the conditions, if any, of any exemptiongranted thereunder, have been complied with, exercise all or any of the following powers, namely :- (a) require an employer tofurnish such information as he may consider necessary;

(b) enter and inspect, at all reasonable hours, with such assistants (if any), being persons in the service of the Government or local or any public authority, as he thinks fit, any premises of or place in any factory, mine, oilfield, plantation, port, railwaycompany, shop or other establishment to which this Act applies, for the purpose of examining any register, record or notice or other document required to be kept or exhibited under this Act or the rules made thereunder, or otherwise kept or exhibited inrelation to the employment of any person or the payment of gratuity to the employees, and require the production thereof for

inspection;

(c) examine with respect to any matter relevant to any of the purposes aforesaid, the employer or any person whom he finds insuch premises or place and who, he has reasonable cause to believe, is an employee employed therein;

(d) make copies of, or take extracts from, any register, record, notice or other document, as he may consider relevant, andwhere he has reason to believe that any offence under this Act has been committed by an employer, search and seize withsuch assistance as he may think fit, such register, record, notice or other document as he may consider relevant in respect of that offence;

(e) exercise such other powers as may be prescribed.

(2) Any person required to produce any register, record, notice or other document or to give any information by an Inspector under sub-section (1) shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the IndianPenal Code 1860 (45 of 1860).

(3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall so far as may be, apply to any search or seizureunder this section as they apply to any search or seizure made under the authority of a warrant issued under section 94 of thatCode.

8. RECOVERY OF GRATUITY. - If the amount of gratuity payable under this Act is not paid by the employer, within the prescribedtime, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person,issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rateas the Central Government may by notification specify from the date of expiry of the prescribed time as arrears of land revenue



as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears of land revenueand pay the same to the person entitled thereto :

Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity

of showing cause against the issue of such certificate :

Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.

9. PENALTIES. - (1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling anyother person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall bepunishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.

(2) An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order madethereunder shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to oneyear, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both :

Provided that where the offence relates to non-payment of any gratuity payable under this Act, the employer shall be punishable withimprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying theoffence, for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of a fine wouldmeet the ends of justice.

11. COGNIZANCE OF OFFENCES. - (1) No court shall take cognizance of any offence punishable under this Act save on acomplaint made by or under the authority of the appropriate Government : Provided that where the amount of gratuity has not been

paid, or recovered, within six months from the expiry of the prescribed time, the appropriate Government shall authorise thecontrolling authority to make a complaint against the employer, whereupon the controlling authority shall, within fifteen days from thedate of such authorisation, make such complaint to a Magistrate having jurisdiction to try the offence.

(2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishableunder this Act.

13. PROTECTION OF GRATUITY. - No gratuity payable under this Act and no gratuity payable to an employee employed in anyestablishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable toattachment in execution of any decree or order of any civil, revenue or criminal court.



14. ACT TO OVERRIDE OTHER ENACTMENTS, ETC. - The provisions of this Act or any rule made thereunder shall have effectnotwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument or contracthaving effect by virtue of any enactment other than this Act.

11] EMPLOYEES' PROVIDENT FUNDS & MISCELLANEOUS PROVISIONS ACT, 1952

An Act to provide for the institution of provident funds, 1[pension fund] and deposit linked insurance fund for employees in factoriesand other establishment Be it enacted by Parliament as follows: -

1. Short title, extent and application

2

[(1) This Act may be called the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.](2) It extends to the whole of India except the State of Jammu and Kashmir.3[(3) Subject to the provisions contained in section 16, it applies

(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which 4[twenty] or morepersons are employed, and

(b) to any other establishment employing 4[twenty] or more persons or class of such establishments which the CentralGovernment may, by notification in the Official Gazette, specify in this behalf:

PROVIDED that the Central Government may, after giving not less than two months' notice of its intention so to do, by notificationin the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than 4[twenty] asmay be specified in the notification.]

5[(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 16, where it appears to the

Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and themajority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to theestablishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from thedate of such agreement or from any subsequent date specified in such agreement.]

6[(5) An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty.]

2. Definitions

In this Act, unless the context otherwise requires,7[(a) "appropriate government" means-

(i) in relation to an establishment belonging to, or under the control of, the Central Government or in relation to an establishmentconnected with a railway company a major port a mine or an oilfield or a controlled industry 8[or in relation to an establishment



connected with a railway company, a major port, a mine or an oilfield or a controlled industry, [or in relation to an establishmenthaving departments or branches in more than one State], the Central Government; and

(ii) in relation to any other establishment, the State Government]; 9[(aa) "authorised officer" means the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner,

Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer as may be authorised by theCentral Government, by notification in the Official Gazette];

(b) "basic wages" means all emoluments which are earned by an employee while on duty or 10[on leave or on holidays with wagesin either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does notinclude:

(i) the cash value of any food concession;(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise

in the cost of living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to theemployee in respect of his employment or of work done in such employment;

(iii) any presents made by the employer;(c) "contribution" means a contribution payable in respect of a member under a scheme 11[or the contribution payable in respect of

an employee to whom the Insurance Scheme applies] ;(d) "controlled industry" means any industry the control of which by the Union has been declared by a Central Act to be expedient

in the public interest; 3[(e) "employer" means:

(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of thefactory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948, the person so named; and

(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of theestablishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager,managing director or managing agent];

(f) "employee" means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the

work of 12[an establishment], and who gets his wages directly or indirectly from the employer, 13[and includes any person(i) employed by or through a contractor in or in connection with the work of the establishment;(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961, or under the standing orders

of the establishment];14[(ff)"exempted employee" means an employee to whom a Scheme 11[or the Insurance Scheme, as the case may be,] would,

but for the exemption granted under 15[***] section 17, have applied;



Where immediately before this Act becomes applicable to an establishment there is in existence a provident fund which is commonto the employees employed in that establishment and employees in any other establishment, the Central Government may, bynotification in the Official Gazette, direct that the provisions of this Act shall also apply to such other establishment.]



4. Power to add to Schedule I

(1) The Central Government may, by notification in the Official Gazette, add to Schedule I any other industry in respect of the

employees whereof it is of opinion that a provident fund scheme should be framed under this Act, and thereupon the industry soadded shall be deemed to be an industry specified in Schedule I for the purposes of this Act.

(2) All notifications under sub-section (1) shall be laid before Parliament, as soon as may be, after they are issued.

5. Employees Provident Funds Scheme

23[(1)] The Central Government may, by notification in the Official Gazette, frame a Scheme to be called the Employees' ProvidentFunds Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the24[establishments] or class of 24[establishments] to which the said Scheme shall apply 25[and there shall be established, as soon asmay be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and the Scheme.]

26[(1A) The Fund shall vest in, and be administered by, the Central Board constituted under section 5A.(1B) Subject to the provisions of this Act, a Scheme framed under sub-section (1) may provide for all or any of the matters

specified in Sch. II. ] 25[(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.

26[5A. Central Board

(1) The Central Government may, be notification in the Official Gazette, constitute, with effect from such date as may be specifiedtherein, a Board of Trustees for the territories to which this Act extends (hereinafter in this Act referred to as the Central Board)consisting of the following 27[persons as members], namely:

(a)28

[a Chairman and a Vice-Chairman] to be appointed by the Central Government; 9[(aa) the Central Provident Fund Commissioner, ex officio];(b) not more than five persons appointed by the Central Government from amongst its officials;(c) not more than fifteen persons representing Governments of such States as the Central Government may specify in this

behalf, appointed by the central Government;(d) 29[ten persons] representing employers of the establishments to which the Scheme applies, appointed by the Central

Government after consultation with such organizations of employers as may be recognised by the Central Government in this behalf;and

(e) 29[ten persons] representing employees in the establishments to which the Scheme applies, appointed by the CentralGovernment after consultation with such organizations of employees as may be recognised by the Central Government in this behalf.

(2) The terms and conditions subject to which a member of the Central Board may be appointed and the time, place andprocedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.



procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.(3) The Central Board shall, 30[subject to the provisions of section 6A] 11[and section 6C], administer the fund vested in it in such

manner as may be specified in the Scheme.(4) The Central Board shall perform such other functions as it may be required to perform by or under any provisions of the

Scheme, 31[Family Pension Scheme and the Insurance Scheme].11[(5) The Central Board shall maintain proper accounts of its income and expenditure in such form and in such manner as the

Central Government may, after consultation with the Comptroller and Auditor-General of India, specify in the Scheme.(6) The accounts of the Central Board shall be audited annually by the Comptroller and Auditor-General of India and any

expenditure incurred by him in connection with such audit shall be payable by the Central Board to the Comptroller and Auditor General of India.

(7) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller andAuditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand theproduction of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Central Board.

(8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or any other person appointed

by him in this behalf together with the audit report thereon shall be forwarded to the Central Board which shall forward the same tothe Central Government along with its comments on the report of the Comptroller and Auditor-General.

(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activities andthe Central Government shall cause a copy of the annual report, the audited accounts together with the report of the Comptroller andAuditor-General of India and the comments of the Central Board thereon to be laid before each House of Parliament.]

9[5AA. Executive Committee

(1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specifiedtherein, an Executive Committee to assist the Central Board in the performance of its functions.

(2) The Executive Committee shall consist of the following persons as members, namely :

(a) a Chairman appointed by the Central Government from amongst the members of the Central Board;(b) two persons appointed by the Central Government from amongst the persons referred to in clause (b) of sub-section (1) of

section 5A;(c) three persons appointed by the Central Government from amongst the persons referred to in clause (c) of sub-section (1) of

section 5A;(d) three persons representing the employers elected by the Central Board from amongst the persons referred to in clause (d) of

sub-section (1) of section 5A;

(f) the Central Provident Fund Commissioner, ex officio.(3) The terms and conditions subject to which a member of the Central Board may be appointed or elected to the Executive

Committee and the time, place and procedure of the meetings of the Executive Committee shall be such as may be provided for inthe Scheme.]



]

26[5B. State Board

(1) The Central Government may, after consultation with the Government of any State, by notification in the Official Gazette,constitute for that State a Board of Trustees (hereinafter in this Act referred to as the State Board) in such manner as may beprovided for in the Scheme.

(2) A State Board shall exercise such powers and perform such duties as the Central Government may assign to it from time totime.

(3) The terms and conditions subject to which a member of a State Board may be appointed and the time, place and procedure of the meetings of a State Board shall be such as may be provided for in the Scheme.]

26[5C. Board of Trustees to be body corporate

Every Board of Trustees constituted under section 5A or section 5B shall be a body corporate under the name specified in thenotification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued.

26[5D. Appointment of officers

(1) The Central Government shall appoint a Central Provident Fund Commissioner who shall be the chief executive officer of theCentral Board and shall be subject to the general control and superintendence of that Board.

(2) The Central Government may also appoint 32[a Financial Adviser and Chief Accounts Officer] to assist the Central ProvidentFund Commissioner in the discharge of his duties.

(3) The Central Board may appoint, 26[subject to the maximum scale of pay, as may be specified in the Scheme, as manyAdditional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund

Commissioners, Assistant Provident Fund Commissioners and such other officers and employees as it may consider necessary for the efficient administration of the Scheme, the 33[Pension] Scheme and the Insurance Scheme.(4) No appointment to 34[the post of the Central Provident Fund Commissioner or a Financial Advisor and Chief Accounts Officer or

any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group 'A' or Group 'B' post under the Central Government] shall be made except after consultation with the Union Public Service Commission:

PROVIDED that no such consultation shall be necessary in regard to any such appointment(a) for a period not exceeding one year, or (b) if the person to be appointed is at the time of his appointment

(i) a member of the Indian Administrative Service, or (ii) in the service of the Central Government or a State Government or the Central Board in a 35[Group 'A' or Group 'B' post.]

(5) A State Board may, with the approval of the State Government concerned, appoint such staff as it may consider necessary.(6) The method of recruitment, salary and allowances, discipline and other conditions of service of the Central Provident Fund



( ) , y , pCommissioner, 36[and the Financial Adviser and Chief Accounts Officer] shall be such as may be specified by the CentralGovernment and such salary and allowances shall be paid out of the Fund.

5[(7)(a) The method of recruitment, salary and allowances, discipline and other conditions of service of the Additional Central

Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner, Assistant ProvidentFund Commissioner and other officers and employees of the Central Board shall be such as may be specified by the Central Boardin accordance with the rules and orders applicable to the officers and employees of the Central Government drawing correspondingscales of pay:

PROVIDED that where the Central Board is of the opinion that it is necessary to make a departure from the said rules or ordersin respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government.

(b) In determining the corresponding scales of pay of officers and employees under cl.(a), the Central Board shall have regardto the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the CentralGovernment and in case of any doubt, the Central Board shall refer the matter to the Central Government whose decision thereonshall be final.]

(8) The method of recruitment, salary and allowances, discipline and other conditions of service37 of officers and employees of

State Board shall be such as may be specified by that Board, with the approval of the State Government concerned.

9[5DD. Acts and proceedings of the Central Board or its Executive Committee or the State Board not to be invalidated oncertain grounds

No act done or proceeding taken by the Central Board or the Executive Committee constituted under section 5AA or the State Boardshall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Central Board or the Executive Committee or the State Board, as the case may be.]

26[5E. Delegation

38[The Central Board may delegate to the Executive Committee or to the Chairman of the Board or to any of its officers and a StateBoard may delegate to its Chairman or to any of its officers] subject to such conditions and limitations, if any, as it may specify, suchof its powers and functions under this Act as it may deem necessary for the efficient administration of the Scheme, the 33[PensionScheme and the Insurance Scheme].]

6. Contributions and matters which may be provided for in the Scheme

39[* * *] The contribution which shall be paid by the employer to the Fund shall be 40[ten per cent] of the basic wages, 41[dearnessallowance and retaining allowance (if any)], for the time being payable to each of the employees 26[(whether employed by him directlyor by or through a contractor)] and the employees' contribution shall be equal to the contribution payable by the employer in respectof him and may, 42[if any employee so desires be an amount not exceeding 43[ten per cent] of his basic wages, dearness allowance



y [ y p y g [ p ] gand retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contributionover and above his contribution payable under this section]:44[PROVIDED that in its application to any establishment or class of establishments which the Central Government, after making

such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words 40[ten per cent], at both the places where they occur, the words 43[twelve per cent] shall be substituted]:45[PROVIDED FURTHER that] where the amount of any contribution payable under this Act involves a fraction of a rupee, theScheme may provide for the rounding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupee.Explanation 46 [11 : For the purposes of this 47[section], dearness allowance shall be deemed to include also the cash value of anyfood concession allowed to the employee.6[Explanation 2 : For the purposes of this 47[section], "retaining allowance" means an allowance payable for the time being to anemployee of any factory or other establishment during any period in which the establishment is not working, for retaining hisservices.]

48[6A. Employees' Pension Scheme

(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees' PensionScheme for the purpose of providing for:

(a) superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to which this Act applies; and

(b) widow or widower's pension, children pension or orphan pension payable to the beneficiaries of such employees.(2) Notwithstanding anything contained in section 6, there shall be established, as soon as may be after framing of the Pension

Scheme, a Pension Fund into which there shall be paid, from time to time, in respect of every employee who is a member of thePension Scheme:

(a) such sums from the employer's contribution under section 6, not exceeding eight and one-third per cent of the basic wages,dearness allowance and retaining allowance, if any, of the concerned employees, as may be specified in the Pension Scheme;

(b) such sums as are payable by the employers of exempted establishments under sub-section (6) of section 17;(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment of the Pension Fund;(d) such sums as the Central Government may, after due appropriation by Parliament by law in this behalf, specify.

(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to as the ceased scheme) shallcease to operate and all assets of the ceased scheme shall vest in and shall stand transferred to, and all liabilities under the ceasedscheme shall be enforceable against, the Pension Fund and the beneficiaries under the ceased scheme shall be entitled to draw thebenefits, not less than the benefits, they were entitled to under the ceased scheme, from the Pension Fund.

(4) The Pension Fund shall vest in and be administered by the Central Board in such manner as may be specified in the PensionScheme.

(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the matters specified in Schedule III.(6) The Pension Scheme may provide that all or any of its provisions shall take effect either prospectively or retrospectively on



such date as may be specified in that behalf in that Scheme.(7) A Pension Scheme, framed under sub-section (1) shall be laid, as soon as may be after it is made, before each House of

Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive

sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, bothHouses agree in making any modification in the scheme or both Houses agree that the scheme should not be made, the schemeshall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modificationor annulment shall be without prejudice to the validity of anything previously done under that scheme.

11[6C. Employees' Deposit Linked insurance Scheme

(1) The Central Government may, by notification in the Official Gazette, frame a Scheme to be called the Employees' Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Act applies.

(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a Deposit-linked Insurance Fund

into which shall be paid by the employer from time to time in respect of every such employee in relation to whom he is the employer,such amount, not being more than one per cent of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee as the Central Government may, by notification in the Official Gazette,specify.

Explanation: For the purposes of this sub-section, the expressions "dearness allowance" and "retaining allowance" have the samemeanings as in section 6.

49[(3) ***](4)(a) The employer shall pay in to the Insurance Fund such further sums of money, not exceeding one-fourth of the contribution

which he is required to make under sub-section (2), as the Central Government may, from time to time, determine to meet all theexpenses in connection with administration of the Insurance Scheme other than the expenses towards the cost of any benefitsprovided by or under that Scheme.

49[(b) ***](5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as may be specified in the

Insurance Scheme.(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.(7) The Insurance Scheme may provide that any of its provisions shall take effect either prospectively or retrospectively on such

date as may be specified in this behalf in that Scheme.]

50[6D. Laying of Schemes before Parliament

Every Scheme framed under section 5, section 6A and Section 6C shall be laid, as soon as may be after it is framed, before eachHouse of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more



successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid,both Houses agree in making any notification in the Scheme, or both Houses agree that the scheme should not be framed, theScheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such

modification or annulment shall be without prejudice to the validity of anything previously done under the Scheme.]

7. Modification of Scheme

(1) The Central Government may, by notification in the Official Gazette, add to, 2[amend or vary, either prospectively or retrospectively, the Scheme, the 33[Pension] Scheme or the Insurance Scheme, as the case may be.]

51[(2) Every notification issued under sub-section (1) shall be laid, as soon as may be after it is issued, before each House of Parliament while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successivesessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, bothHouses agree in making any modification in the notification, or both houses agree that the notification should not be issued, thenotification shall thereafter have effect only in such modified form or be of no effect, as the case may be ; so however, that any such

modification or annulment shall be without prejudice to the validity of anything previously done under that notification.]

26[7A. Determination of moneys due from employers

5[(1) The Central Provident Fund Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident FundCommissioner, any Regional Provident Fund Commissioner or any Assistant Provident Fund Commissioner may, by order,

(a) in a case where a dispute arises regarding the applicability of this Act to an establishment, decide such dispute; and(b) determine the amount due from any employer under any provision of this Act, the Scheme or the 33[Pension] Scheme or

the Insurance Scheme, as the case may be,and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary.]

(2) The officer conducting the inquiry under sub-section (1) shall, for the purposes of such inquiry, have the same powers as arevested in a court under the Code of Civil Procedure, 1908, for trying a suit in respect of the following matters, namely:(a) enforcing the attendance of any person or examining him on oath;(b) requiring the discovery and production of documents;(c) receiving evidence on affidavit;(d) issuing commissions for the examination of witnesses;

and any such inquiry shall be deemed to be judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.

(3) No order 52[***] shall be made under sub-section (1), unless 53[the employer concerned] is given a reasonable opportunity of representing his case.

9[(3A) Where the employer, employee or any other person required to attend the inquiry under sub-section (1) fails to attend suchinquiry without assigning any valid reason or fails to produce any document or to file any report or return when called upon to do so,



the officer conducting the inquiry may decide the applicability of the Act or determine the amount due from any employer, as the casemay be, on the basis of the evidence adduced during such enquiry and other documents available on record.]

5[(4) Where an order under sub-section (1) is passed against an employer ex parte, he may, within three months from the date of

communication of such order, apply to the officer for setting aside such order and if he satisfies the officer that the show cause noticewas not duly served or that he was prevented by any sufficient cause from appearing when the inquiry was held, the officer shallmake an order setting aside his earlier order and shall appoint a date for proceeding with the inquiry:

PROVIDED that no such order shall be set aside merely on the ground that there has been an irregularity in the service of theshow cause notice if the officer is satisfied that the employer had notice of the date of hearing and had sufficient time to appear before the officer.

Explanation: Where an appeal has been preferred under this Act against an order passed ex parte and such appeal has beendisposed of otherwise than on the ground that the appellant has withdrawn the appeal, no application shall lie under this sub-sectionfor setting aside the ex-pert order.

(5) No order passed under this section shall be set aside on any application under sub-section (4) unless notice thereof has beenserved on the opposite party.]

7D. Employees' Provident Funds Appellate Tribunal

(1) The Central Government may, by notification in the Official Gazette, constitute one or more Appellate Tribunals to be known asthe Employees' Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunalby this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified inthe notification constituting the Tribunal.

(2) A Tribunal shall consist of one person only to be appointed by the Central Government.43[(3) A person shall not be qualified for appointment as a Presiding Officer of a Tribunal (hereinafter referred to as the Presiding

Officer) unless he is or has been, or is qualified to be-(i) a Judge of a High Court; or

(ii) a District Judge.]

7E. Term of office

The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until heattains the age of sixty-two years, whichever is earlier.

7F. Resignation

(1) The Presiding Officer may, by notice in writing under his hand addressed to the Central Government, resign his office:PROVIDED that the Presiding Officer shall, unless he is permitted by the Central Government to relinquish his office sooner,



continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as hissuccessor enters upon his office or until the expiry of his term of office, whichever is the earliest.

55[(2) The Presiding Officer shall not be removed from his office except by an order made by the President on the ground of proved

misbehaviour or incapacity after an inquiry made by a Judge of the High Court in which such Presiding Officer had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

(3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of thePresiding Officer.]

7H. Staff of Tribunal

(1) The Central Government shall determine the nature and categories of the officers and other employees required to assist aTribunal in the discharge of its functions and provide the Tribunal with such officers and other employees as it may think fit.

(2) The officers and other employees of a Tribunal shall discharge their functions under the general superintendence of thePresiding Officer.

(3) The salaries and allowances and other conditions of service of the officers and other employees of a Tribunal shall be such asmay be prescribed.

7-I. Appeals to Tribunal

(1) Any person aggrieved by a notification issued by the Central Government, or an order passed by the Central Government or any authority, under the proviso to sub-section (3), or sub-section (4), of section 1, or section 3, or sub-section (1) of section 7A, or section 7B [except an order rejecting an application for review referred to in sub-section (5) thereof], or section 7C, or section 14B,may prefer an appeal to a Tribunal against such notification or order.

(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and be accompanied by such fees,as may be prescribed.

7J. Procedure of Tribunal

(1) A Tribunal shall have power to regulate its own procedure in all matters arising out of the exercise of its powers or of thedischarge of its functions including the places at which the Tribunal shall have its sittings.

(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the officers referred to insection 7A and any proceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193

and 228, and for the purpose of section 196 of the Indian Penal Code, 1860 (45 of 1860), and the Tribunal shall be deemed to be aCivil Court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

7K. Right of appellant to take assistance of legal practitioner and of government, etc. to appoint presenting officers



(1) A person preferring an appeal to a Tribunal under this Act may either appear in person or take the assistance of a legalpractitioner of his choice to present his case before the Tribunal.

(2) The Central Government or a State Government or any other authority under this Act may authorise one or more legalpractitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect toany appeal before a Tribunal.

7L. Orders of Tribunal

(1) A Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit,confirming, modifying or annulling the order appealed against or may refer the case back to the authority which passed such order with such directions as the Tribunal may think fit, for a fresh adjudication or order, as the case may be, after taking additionalevidence, if necessary.

(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying any mistake apparent from therecord, amend any order passed by it under sub-section (1) and shall make such amendment in the order if the mistake is brought toits notice by the parties to the appeal:

PROVIDED that an amendment which has the effect of enhancing the amount due from, or otherwise increasing the liability of, theemployer shall not be made under this sub-section, unless the Tribunal has given notice to him of its intention to do so and hasallowed him a reasonable opportunity of being heard.

(3) A Tribunal shall send a copy of every order passed under this section to the parties to the appeal.(4) Any order may by a Tribunal finally disposing of an appeal shall not be questioned in any Court of law.

7-O. Deposit of amount due, on filing appeal

No appeal by the employer shall be entertained by a Tribunal unless he has deposited with it seventy-five per cent of the amount duefrom him as determined by an officer referred to in section 7A :PROVIDED that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under thissection.

7Q. Interest payable by the employer



(1) Where any amount is in arrears under section 8, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover theamount specified therein from the establishment or, as the case may be, the employer by one or more of the modes mentionedbelow:

(a) attachment and sale of the movable or immovable property of the establishment or as the case may be the employer;



(a) attachment and sale of the movable or immovable property of the establishment or, as the case may be, the employer;(b) arrest of the employer and his detention in prison;(c) appointing a receiver for the management of the movable or immovable properties of the establishment or, as the case may

be, the employer:PROVIDED that the attachment and sale of any property under this section shall first be effected against the properties of the

establishment and where such attachment and sale is insufficient for recovering the whole of the amount of arrears specified in thecertificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or anypart of such arrears.

(2) The authorised officer may issue a certificate under sub-section (1), not withstanding that proceedings for recovery of thearrears by any other mode have been taken.

8C. Recovery Officer to whom certificate is to be forwarded

(1) The authorised officer may forward the certificate referred to in section 8B to the Recovery Officer within whose jurisdiction the

employer (a) carries on his business or profession or within whose jurisdiction the principal place of his establishment is situate; or (b) resides or any movable or immovable property of the establishment or the employer is situate.

(2) Where an establishment or the employer has property within the jurisdiction of more than one Recovery Officers and theRecovery Officer to whom a certificate is sent by the authorised officer

(a) is not able to recover to the entire amount by the sale of the property, movable or immovable, within his jurisdiction; or (b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount, it is

necessary so to do,he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the prescribedmanner and specifying the amount to be recovered to the Recovery Officer within whose jurisdiction the establishment or theemployer has property or the employer resides, and thereupon that Recovery Officer shall also proceed to recover the amount due

under this section as if the certificate or the copy thereof had been the certificate sent to him by the authorised officer.

8D. Validity of certificate and amendment thereof

(1) When the authorised officer issues a certificate to Recovery Officer under section 8B, it shall not be open to the employer todispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall alsobe entertained by the Recovery Officer.

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw thecertificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.

(3) The authorised officer shall intimate to the Recovery Officer any order withdrawing or cancelling a certificate or any correctionmade by him under sub-section (2) or any amendment made under sub-section (4) of section 8E.



8E. Stay of proceedings under certificate and amendment or withdrawal thereof

(1) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of thetime so granted.

(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informedof any amount paid or time granted for payment, subsequent to the issue of such certificate.

(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been modified inappeal or other proceeding under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject-matter of a further proceeding under this Act, the authorised officer shall stay the recovery of such part of the amount of the certificate aspertains to the said reduction for the period for which the appeal or other proceeding remains pending.

(4) Where a certificate for the recovery of amount has been issued and subsequently the amount of the outstanding demand isreduced as a result of an appeal or other proceeding under this Act, the authorised officer shall, when the order which was the

subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate or withdraw it, as the casemay be.

8F. Other modes of recovery

(1) Notwithstanding the issue of a certificate to the Recovery Officer under section 8B, the Central Provident Fund Commissioner or any other officer authorised by the Central Board may recover the amount by any one or more of the modes provided in thissection.

(2) If any amount is due from any person to any employer who is in arrears, the Central Provident Fund Commissioner or anyother officer authorised by the Central Board in this behalf may require such person to deduct from the said amount the arrears duefrom such employer under this Act, and such person shall comply with any such requisition and shall pay the sum so deducted to thecredit of the Central Provident Fund Commissioner or the officer so authorised, as the case may be:

PROVIDED that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decreeof a civil court under section 60 of the Code of Civil Procedure, 1908.

(3) (i) The Central Provident Fund Commissioner or any other officer authorised by the Central Board in this behalf may, at anytime or from time to time, by notice in writing, require any person from whom money is due or may become due to the employer or,as the case may be, the establishment or any person who holds or may subsequently hold money for or on account of the employer or as the case may be, the establishment, to pay to the Central Provident Fund Commissioner either forthwith upon the money

becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) somuch of the money as is sufficient to pay the amount due from the employer in respect of arrears or the whole of the money when itis equal to or less than that amount.

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or onaccount of the employer jointly with any other person and for the purposes of this sub section the shares of the joint holders in such



account of the employer jointly with any other person and for the purposes of this sub-section, the shares of the joint-holders in suchaccount shall be presumed, until the contrary is proved, to be equal.

(iii) A copy of the notice shall be forwarded to the employer at his last address known to the Central Provident Fund

Commissioner or, as the case may be, the officer so authorised and in the case of a joint account to all the joint-holders at their lastaddresses known to the Central Provident Fund Commissioner or the officer so authorised.

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall bebound to comply with such notice, and, in particular, where any such notice is issued to a post office, bank or an insurer, it shall notbe necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry,endorsement or the like being made before payment is made notwithstanding any rule, practice or requirement to the contrary.

(v) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the dateof the notice shall be void as against any demand contained in the notice.

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demandedor any part thereof is not due to the employer or that he does not hold any money for or on account of the employer, then, nothingcontained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if

it is discovered that such statement was false in any material particular, such person shall be personally liable to the CentralProvident Fund Commissioner or the officer so authorised to the extent of his own liability to the employer on the date of the notice,or to the extent of the employer's liability for any sum due under this Act, whichever is less.

(vii) The Central Provident Fund Commissioner or the officer so authorised may, at any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time for making any payment in pursuance of such notice.

(viii) The Central Provident Fund Commissioner or the officer so authorised shall grant a receipt for any amount paid incompliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to theemployer to the extent of the amount so paid.

(ix) Any person discharging any liability to the employer after the receipt of a notice under this sub-section shall be personallyliable to the Central Provident Fund Commissioner or the officer so authorised to the extent of his own liability to the employer sodischarged or to the extent of the employer's liability for any sum due under this Act, whichever is less.

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the CentralProvident Fund Commissioner or the officer so authorised he shall be deemed to be an employer in default in respect of the amountspecified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were an arrear duefrom him, in the manner provided in sections 8B to 8E and the notice shall have the same effect as an attachment of a debt by theRecovery Officer in exercise of his powers under section 8B.

(4) The Central Provident Fund Commissioner or the officer authorised by the Central Board in this behalf may apply to the court inwhose custody there is money belonging to the employer for payment to him of the entire amount of such money, or if it is more thanthe amount due, an amount sufficient to discharge the amount due.

(5) The Central Provident Fund Commissioner or any officer not below the rank of Assistant Provident Fund Commissioner may, if so authorised by the Central Government by general or special order recover any arrears of amount due from an employer or as the



so authorised by the Central Government by general or special order, recover any arrears of amount due from an employer or, as thecase may be, from the establishment by distraint and sale of his or its movable property in the manner laid down in the ThirdSchedule to the Income Tax Act, 1961 (43 of 1961).

8G. Application of certain provisions of Income Tax Act

The provisions of the Second and Third Schedules to the Income Tax Act, 1961 (43 of 1961), and the Income Tax (CertificateProceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and therules referred to the arrears of the amount mentioned in section 8 of this Act instead of to the Income Tax:PROVIDED that any reference in the said provisions and the rules to the "assessee" shall be construed as a reference to anemployer as defined in this Act.

66[9. Fund to be recognised under Act 11 of 1922

For the purposes of the Indian Income Tax Act, 1922, the Fund shall be deemed to be a recognised provident fund within themeaning of Chapter IX-A of that Act:25[PROVIDED that nothing contained in the said Chapter shall operate to render ineffective any provision of the Scheme (under whichthe Fund is established) which is repugnant to any of the provisions of that Chapter or of the rules made thereunder.]]

10. Protection against attachment

(1) The amount standing to the credit of any member in the Fund 25[or of any exempted employee in a provident fund] shall not inany way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any Court inrespect of any debt or liability incurred by the member 25[or the exempted employee], and neither the official assignee appointed

under the Presidency Towns Insolvency Act, 1909, nor any receiver appointed under the Provincial Insolvency Act, 1920, shall beentitled to, or have any claim on, any such amount.56[(2) Any amount standing to the credit of a member in the Fund or of an exempted employee in a provident fund at the time of his

death and payable to his nominee under the Scheme or the rules of the Provident Fund shall, subject to any deduction authorised bythe said Scheme or rules, vest in the nominee and shall be free from any debt or other liability incurred by the deceased or thenominee before the death of the member or of the exempted employee 9[and shall also not be liable to attachment under any decreeor order of any Court.]

30[(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to the family pension or anyother amount payable under the 33[Pension] Scheme 11[and also in relation to any amount payable under the Insurance Scheme] asthey apply in relation to any amount payable out of the Fund.]

11 Priority of payment of contributions over other debts



11. Priority of payment of contributions over other debts

67[(1)] 68[Where any employer is adjudicated in solvent or, being a company, an order for winding up is made, the amount due

(a) from the employer in relation to 12[an establishment] to which any 69[Scheme or the insurance Scheme] applies in respect of any contribution payable to the Fund 11[or, as the case may be, the Insurance Fund], damages recoverable under section 14B,accumulations required to be transferred under sub-section (2) of section 15 or any charges payable by him under any other provision of this Act or of any provision of the 69[Scheme or the Insurance Scheme]; or

(b) from the employer in relation to an exempted 70[establishment] in respect of any contribution to 69[the provident fund or anyinsurance fund] (in so far as it relates to exempted employees), under the rules of 69[the provident fund or any insurance fund] 30[anycontribution payable by him towards the 33[Pension] Fund under sub-section (6) of section 17,] damages recoverable under section14B or any charges payable by him to the appropriate Government under any provision of this Act under any of the conditionsspecified under section 17, shall where the liability therefor has accrued before the order of adjudication or winding up is made, bedeemed to be included] among the debts which under section 49 of the Presidency Towns Insolvency Act, 1909, or under section 61of the Provincial Insolvency Act, 1920, or under 61[section 530 of the Companies Act, 1956], are to be paid in priority to all other debts

in the distribution of the property of the insolvent or the assets of the company being wound up, as the case may be.11[Explanation: In this sub-section and in section 17, "insurance fund" means any fund established by an employer under any

Scheme for providing benefits in the nature of life insurance to employees, whether linked to their deposits in provident fund or not,without payment by the employees of any separate contribution or premium in that behalf.]

71[(2) Without prejudice to the provisions of sub-section (1), if any amount is due from an employer, 72[whether in respect of theemployee's contribution (deducted from the wages of the employee) or the employer's contribution], the amount so due shall bedeemed to be the first charge on the assets of the establishment, and shall, notwithstanding anything contained in any other law for the time being in force, be paid in priority to all other debts.]

13. Inspectors

(1) The appropriate government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of this Act 75[, the Scheme 76[, the 33[Pension ] Scheme or the Insurance Scheme]], and may define their jurisdiction.

(2) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the correctness of any informationfurnished in connection with this Act or with any 77[Scheme or the Insurance Scheme] or for the purpose of ascertaining whether anyof the provisions of this Act or of any 57[Scheme or the Insurance Scheme] have been complied with 25[ in respect of 12[anestablishment] to which any 77[Scheme or the Insurance Scheme] applies or for the purpose of ascertaining whether the provisions of this Act or any 77[Scheme or the Insurance Scheme] are applicable to any 59[establishment] to which the 77[Scheme or the Insurance

Scheme] has not been applied or for the purpose of determining whether the conditions subject to which exemption was grantedunder section 17 are being complied with by the employer in relation to an exempted 12[establishment].

(a) require an employer 26[or any contractor from whom any amount is recoverable under section 8A] to furnish such informationas he may consider necessary;

(b) at any reasonable time 78[and with such assistance if any as he may think fit enter and search] any 59[establishment] or



(b) at any reasonable time [and with such assistance, if any, as he may think fit, enter and search] any [establishment], or any premises connected therewith and require any one found in charge thereof to produce before him for examination any accounts,books, registers and other documents relating to the employment of persons or the payment of wages in the 75[establishment];

(c) examine, with respect to any matter relevant to any of the purposes aforesaid, the employer 26

[or any contractor from whomany amount is recoverable under sections 8A], his agent or servant or any other person found in charge of the 59[establishment], or any premises connected there with or whom the Inspector has reasonable cause to believe to be or to have been, an employee inthe 59[establishment];

124[(d) makes copies of, or take extracts from, any book, register or other document maintained in relation to the establishment and,where he has reason to believe that any offence under this Act has been committed by an employer, seize with such assistance ashe may think fit, such book, register or other document or portions thereof as he may consider relevant in respect of that offence;]

(e) exercise such other powers as the 125[Scheme or the Insurance Scheme] may provide.

126[(2A) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the correctness of any informationfurnished in connection with the 127[Pension] Scheme or for the purpose of ascertaining whether any of the provisions of this Act or of the 127[Pension] Scheme have been complied with in respect of an establishments to which the 127[Pension] Scheme applies, exerciseall or any of the powers conferred on him under clause (a), (b), (c) or (d) of sub-s. (2).]

129[(2B) The provisions of the 128[Code of Criminal Procedure, 1898], shall, so far as may be, apply to any search or seizure under sub-section (2) 129[or under sub-section (2A), as the case may be,] as they apply to any search and seizure made under the authorityof a warrant issued under 130[section 98] of the said Code.

131[***]

14. Penalties

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act 132[the Scheme, 133[,the 127[Pension]Scheme] or the Insurance Scheme] or of enabling any other person to avoid such payment knowingly makes or causes to be madeany false statement or false representation shall be punishable with imprisonment for a term which may extend to 134[one year, or with fine of five thousand rupees, or with both].

135[(1A) An employer who contravenes, or makes default in complying with, the provisions of section 6 or clause (a) of sub-section(3) of section 17 in so far as it relates to the payment of inspection charges, or para 38 of the Scheme insofar as it relates to thepayment of administrative charges, shall be punishable with imprisonment for a term which may extend to 136[three years] but

(a) which shall not be less than 137[one year and fine of ten thousand rupees] in case of default in payment of employees'contribution which has been deducted by the employer from the employees' wages;



contribution which has been deducted by the employer from the employees wages;138[(b) which shall not be less than six months and fine of five thousand rupees, in any other case:]

139[***]

PROVIDED that the court may, for any adequate and special reasons to be recorded in the judgement, impose a sentence of imprisonment for a lesser term 140[***]

141[(1B) An employer who contravenes, or makes default in complying with, the provisions of section 6C, or clause (a) of sub-section(3A) of section 17 in so far as it relates to payment of inspection charges, shall be punishable with imprisonment for a term whichmay extend to 136[one year] but which shall not be less than 142[Six months] and shall also be liable to fine which may extend to 142[fivethousand rupees]:

PROVIDED that the court may, for any adequate and special reasons to be recorded in the judgement, impose a sentence of imprisonment for a lesser term 143[***].]

(2) 144[Subject to the provisions of the Act, the Scheme,] 133[the l48[Pension] Scheme or the Insurance Scheme] may provide thatany person who contravenes, or makes default in complying with any of the provisions thereof shall be punishable with imprisonmentfor a term which may extend to 134[one year, or with fine which may extend to four thousand rupees, or with both].]

145

[(2A) Whoever contravenes or makes default in complying with any provision of this Act or of any condition subject to whichexemption was granted under section 17 shall, if no other penalty is elsewhere provided by or under this Act for such contraventionor non-compliance, be punishable with imprisonment which may extend to 146[six months, but which shall not be less than one month,and shall also be liable to fine which may extend to five thousand rupees].] 145A[***]

16. Act not to apply to certain establishments

160[(1) This Act shall not apply(a) to any establishment registered under the Co-operative Societies Act, 1912, or under any other law for the time being in

force in any State relating to co-operative societies, employing less than fifty persons and working without the aid of power, or 161[(b) to any other establishment belonging to or under the control of the Central Government or a State Government and whose

employees are entitled to the benefit of Contributory provident fund or old age pension in accordance with any scheme or rule framedby the Central Government or the State Government governing such benefits, or

(c) to any other establishment set up under any Central, Provincial or State Act and whose employees are entitled to thebenefits of contributory provident fund or old age pension in accordance with any scheme or rule framed under that Act governingsuch benefits. 162[* * ]

145[(2) If the Central Government is of opinion that having regard to the financial position of any class of 163[establishments] or other circumstances of the case, it is necessary or expedient so to do, it may, by notification in the Official Gazette, and subject to suchconditions as may be specified in the notification, exempt 164[, whether prospectively or retrospectively,] that class of 163[establishments] from the operation of this Act or such period as may be specified in the notification.]



152[17A. Transfer of accounts

(1) Where an employee employed in an establishment to which this Act applies leaves his employment and obtains re-employmentin another establishment to which this Act does not apply, the amount of accumulations to the credit of such employee in the Fund, or as the case may be, in the provident fund of the establishment left by him shall be transferred, within such time as may be specifiedby the Central Government in this behalf, to the credit of his account in the provident fund of the establishment in which he is re-employed, if the employee so desires and the rules in relation to that provident fund permit such transfer.

(2) Where an employee employed in an establishment to which this Act does not apply leaves his employment and obtains re-employment in another establishment to which this Act applies, the amount of accumulations to the credit of such employee in theprovident fund of the establishment left by him may, if the employee so desires and the rules in relation to such provident fund permit,be transferred to the credit of his account in the Fund or as the case may be, in the provident fund of the establishment in which he isre-employed.]

SCHEDULE I

(See sections 2(i) and 4)Any industry engaged in the manufacture 185[***] of any of the following, namely:

Cement.Cigarettes.Electrical, mechanical or general engineering products.Iron and steel.Paper.Textiles (made wholly or in part of cotton or wool or jute or silk, whether natural or artificial).

186[1. Matches.2. Edible oils and fats.3. Sugar.4. Rubber and rubber products.5. Electricity, including the generation, transmission and distribution thereof.6. Tea.

7. Printing [other than printing industry relating to newspaper establishments as defined in the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955 (45 of 1955), including the process of composing types for printing, printing byletter-press, lithography, photogravure or other similar process or bookbinding.]

8. Glass.9. Stone-ware pipes.



p p10. Sanitary wares.11. Electrical porcelain insulators of high and low tension.

12. Refractories.13. Tiles.]

187[1. Heavy and fine chemicals, including:(i) Fertilisers,(ii) Turpentine,(iii) Resin,(iv) Medical and pharmaceutical preparations,(v) Toilet preparations,(vi) Soaps,(vii) Inks,(viii) Intermediates, dyes, colour lacs and toners,

(ix) Fatty acids, and188[(x) Oxygen, acetylene and carbon-dioxide gases industry.]2. Indigo.3. Lac including shellac.4. Non-edible, vegetable and animal oils and fats.]

189[Mineral oil refining industry.]190[(i) Industrial and power alcohol industry; and(ii) Asbestos cement sheets industry.]

191[Biscuit-making industry including composite units making biscuits and products such as bread, confectionery and milk and milkpowder.]

192[Mica industry.]193

[Plywood industry.]194[Automobile repairing and servicing industry.]195[1. Rice milling.2. Flour milling3. Dal milling.]

196[Starch industry.]197[1. Petroleum or natural gas exploration, prospecting, drilling or production.

2. Petroleum or natural gas refining.]198[Leather and leather products industry.]199[1. Stone-ware jars.2. Crockery.]

200[The fruit and vegetable preservation industry, that is to say, any industry which is engaged in the preparation or production of



[ g p y y y y g g p p pany of the following articles, namely:

(i) canned and bottled fruits, juices and pulps,

(ii) canned and bottled vegetables,(iii) frozen fruits and vegetables,(iv) jams, jellies and marmalades,(v) tomato products, ketchups and sauces,(vi) squashes, crushes, cordials and ready-to-serve beverages or any other beverages containing fruit juice or fruit pulp,(vii) preserved, canned and crystallised fruits and peels,(viii) chutneys,(ix) any other unspecified item relating to the preservation or canning of fruits and vegetables.]

201[Cashewnut industry.]202[Confectionery industry.]203[1. Buttons.

2. Brushes.3. Plastic and plastic products.4. Stationery products.]

204[The aerated water industry, that is to say, any industry engaged in the manufacture of aerated water, soft drinks or carbonatedwater.]

205[The distilling and rectifying of spirits (not falling under industrial and power alcohol) and blending of spirits industry.]206[The paint and varnish industry.]207[Bone crushing industry.]208[Pickers industry.]209[Milk and milk products industry.]210[Non-ferrous metals and alloys in the form of ingots industry.]211

[Bread industry.]212[Stemming or re-drying of tobacco leaf industry, that is to say, any industry engaged in the stemming, re-drying, handling, sorting,grading or packing of tobacco leaf.]

213[Agarbattee (including dhoop and dhoopbattee) industry.]214[Coir (excluding the spinning sector) industry.]215[Tobacco industry, that is to say, any industry engaged in the manufacture of cigars, zarda, snuff, quivam and guraku from

tobacco.]

216[Paper products industry.]217[Licensed salt industry, that is to say, any industry engaged in the manufacture of salt for which a license is necessary and which

has land not less than 4.05 hectares.]218[Linoleum industry and indoleum industry.]219[Explosive industry.]



220[Jute bailing or pressing industry.]221[Fire-works and percussion cap works industry.]222

[Tent making industry.]223[Ferro-manganese industry.]224[Ice or ice-cream industry.]225[Winding of thread and yarn reeling industry.]226[Cotton ginning, baling and pressing industry.]227[Katha making industry.]228[Beer manufacturing industry, that is to say, any industry engaged in the manufacture of the product of alcoholic fermentation of a

mash in potable water of malted barley and hops, or of hops concentrated with or without the addition of other malted or unmaltedcereals or other carbohydrate preparations.]

229[Beedi industry, that is to say, any industry engaged in manufacture of beedies.]230[Ferro-chrome industry.]231

[Diamond cutting industry.]232[Myrobalan extract powder, myrobalan extract solid and vegetable tannin blended extract industries.]233[Brick industry.]234[All industries based on asbestos as principal raw material.]235[Industries manufacturing iron ore pellets.]

145[Explanation: In this Schedule, without prejudice to the ordinary meaning of the expressions used therein,:(a) the expression "Electrical, mechanical or general engineering products" includes :(1) machinery and equipment for the generation, transmission, distribution or measurement of electrical energy and motors

including cables and wires,(2) telephones, telegraph and wireless communication apparatus,(3) electric lamps (not including glass bulbs),

(4) electric fans and electrical domestic appliances,(5) storage and dry batteries,(6) radio receivers and sound reproducing instruments,(7) machinery used in industry (including textile machinery) other than electrical machinery and machine tools,(8) boilers and prime movers, including internal combustion engines, marine engines and locomotives,(9) machines tools, that is to say, metal and wood working machinery,(10) grinding wheels,

(11) ships(12) automobiles and tractors,(13) bolts, nuts and rivets,(14) power-driven pumps,(15) bicycles,



(16) hurricane lanterns,(17) sewing and knitting machines,

(18) mathematical and scientific instruments,(19) products of metal rolling and re-rolling,(20) wires, pipes, tubes and fittings,(21) ferrous and non-ferrous castings,(22) safes, vaults and furniture made of iron and steel or steel alloys,(23) cutlery and surgical instruments,(24) drums and containers,(25) parts and accessories of products specified in items 1 to 24;(b) the expression 'iron and steel' includes pig iron, ingots, blooms, billets and rolled or re-rolled products into basic forms and tool

and alloy steel;(c) the expression 'paper' includes pulp, paperboard and straw-board;

(d) the expression 'textiles' includes the products of carding, spinning, weaving, finishing and dyeing yarn and fabrics, printing,knitting and embroidering.]

SCHEDULE II : MATTERS FOR WHICH PROVISION MAY BE MADE IN A SCHEME

236 [See section 5(1B)] 1. The employees or class of employees who shall join the Fund, and the conditions under which employees may be exempted

from joining the Fund or from making any contribution.2. The time and manner in which contribution shall be made to the Fund by employers and by, or on behalf of, employees,

152[whether employed by him directly or by or through contractor)], the contributions which an employee may, if he so desires, make

under 237[***] section 6, and the manner in which such contributions may be recovered.152[2A. The manner in which employees' contribution may be recovered by contractors from employees employed by or through

such contractors.]3. The payment by the employer of such sums of money as may be necessary to meet the cost of administering the Fund and the

rate at which and the manner in which the payment shall be made.238[4. The constitution of any committee for assisting any Board of Trustees.5. The opening of regional and other offices of any Board of Trustees.]



6. The manner in which employees' interest will be protected against default in payment of contribution by the employer.7. The manner in which the accounts of the Pension Fund shall be kept and investment of moneys belonging to Pension Fund to

be made subject to such pattern of investment as may be determined by the Central Government.8. The form in which an employees shall furnish particulars about himself and the members of his family whenever required.9. The forms, registers and records to be maintained in respect of employees, required for the administration of the Pension

S h



Scheme.10. The scale of pension and pensionary benefits and the conditions relating to grant of such benefits to the employees.

11. The manner in which the exempted establishments have to pay contribution towards the Pension Scheme and the submissionof returns relating thereto.12. The mode of disbursement of pension and arrangements to be entered into with such disbursing agencies as may be specified

for the purpose.13. The manner in which the expenses for administering the Pension Scheme will be met from the income of the Pension Fund.14. Any other matter which is to be provided for in the Pension Scheme or which may be necessary or proper for the purpose of

implementation of the Pension Scheme.]

171[SCHEDULE IV: MATTERS TO BE PROVIDED FOR IN THE EMPLOYEES' DEPOSIT LINKED INSURANCE SCHEME

[See section 6C] 1. The employees or class of employees who shall be covered by the Insurance Scheme.2. The manner in which the accounts of the Insurance Fund shall be kept and the investment of moneys belonging to the

Insurance Fund subject to such pattern of investment as may be determined, by order, by the Central Government.3. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.4. The nomination of a person to receive the insurance amount due to the employee after his death and the cancellation or

variation of such nomination.5. The registers and records to be maintained in respect of employees, the form or design of any identity card, token or disc for the

purpose of identifying any employee or his nominee or member of his family entitled to receive the insurance amount.6. 240[The scales of insurance benefits and conditions relating to the grant of such benefits to the employees.]

131[***]

8. The manner in which the amount due to the nominee or the member of the family of the employee under the Scheme is to bepaid including a provision that the amount shall not be paid otherwise than in the form of a deposit in a saving bank account, in thename of such nominee or member of family in any corresponding new bank specified in the First Schedule to the Banking

Personnel Law

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