Laws Related to service Conditions

Module-4
Law Relating to Service conditions

Topics:
Law Relating to Service conditions
• Factories Act 1948
• Karnataka Shops and Commercial Establishment Act 1961
• Contract Labour (Regulation & Abolition) Act 1970
• Apprentice Act 1961.

Definition of Factory
Section 2(m) in The Factories Act, 1948
“Factory” means any premises including the precincts
thereof—
(i) whereon ten 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 with the aid of power, or is ordinarily so carried
on, or
(

Contd.
(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 mine
subject to the operation of [the Mines Act, 1952 (35 of
1952)], or [a mobile unit belonging to the armed forces
of the Union, railway running shed or a hotel, restaurant
or eating place].

Contd.
[Explanation I.—For computing the number of workers
for the purposes of this clause all the workers in a day
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 installed in any premises or part
thereof, shall not be construed to make it a factory if no
manufacturing process is being carried on in such
premises or part thereof;]

Factories Act 1948
• The Factories Act provides for the health, safety, welfare,
service conditions and other aspects of workers in
factories. It applies to all factories employing more than 10
people and working with the aid of power or
employing 20 people and working without the aid of
power. It covers all workers employed in the factory
premises or precincts directly or through an agency
including a contractor, involved in any manufacture.
• Some provisions of the Act will vary according to the
nature of work of the establishment.

Objective of the Act
• To ensure adequate safety measures and to promote
the health and welfare of the workers employed in
factories.
• To prevent haphazard growth of factories through
the provisions related to the approval of plans before
the creation of a factory.

Applicability of the Act
• Applicable to the whole of India including Jammu &
Kashmir.
• Covers all manufacturing processes and establishments
falling within the definition of ‘factory’.
• Applicable to all factories using power and employing 10 or
more workers, and if not using power, employing 20 or
more workers on any day of the preceding 12 months.

Scheme of the Act
The Act consists of 120 Sections and 3 Schedules.
• Schedule 1 contains list of industries involving hazardous
processes
• Schedule 2 is about permissible level of certain chemical
substances in work environment.
• Schedule 3 consists of list of notifiable diseases.

Important provisions the Act
• Facilities and Conveniences
• Welfare
• Facilities in case of large factories
• Safety
• Working Hours
• Overtime Wages
• Employment of Women
• Night Shift for women

Contd.
• Record of Workmen
• Leave
• Wages for overtime and Leave Salary
• Child Employment
• Display on Notice Board
• Notice of Accidents, Diseases Etc
• Obligation regarding Hazardous Processes /
Substances

Facilities and Conveniences
• The factory should be kept clean. [Section 11].
• There should be arrangement to dispose of wastes and effluents.
[Section 12].
• Ventilation should be adequate. Reasonable temperature for comfort of
employees should be maintained. [Section 13].
• Dust and fumes should be controlled below permissible limits. [Section
14].
• Artificial humidification should be at prescribed standard level. [Section
15].
• Overcrowding should be avoided. [Section 16]. (9.9 cubic metres for 1,
14.2 for 2))
• Adequate lighting, drinking water, latrines, urinals should be provided.
[Sections 17 to 19].(cooling water for 250 or more workers)(clean 1’s a week,
90 cm height)
• Adequate spittoons should be provided. [Section 20].

Welfare
• Adequate facilities for washing, sitting, storing clothes when not worn
during working hours. [Section 42].
• If a worker has to work in standing position, sitting arrangement to take
short rests should be provided. [Section 44].
• Adequate First aid boxes should be provided and maintained [Section
45].(1 for 150 workers, ambulance for 500 or more workers)

Facilities in case of large factories
Following facilities are required to be provided by large factories:
• Canteen if 250 or more workers are employed. It should be sufficiently
lighted and ventilated and suitably located. [Section 46].
• Rest rooms / shelters with drinking water when 150 or more workmen
are employed [Section 47];
• Crèches if 30 or more women workers are employed. [Section 48];
• Full time Welfare Officer if factory employs 500 or more workers
[Section 49];
• Safety Officer should be appointed if number of workers in factory are
1,000 or more.[Section 40B].

Safety
• All machinery should be properly fenced to protect workers
when machinery is in motion.[Section 21].
• Work on or near Machinery in motion. [Section 22]
• Employment of young person on dangerous machines (sufficient
training in work at the machine, and under adequate supervision
[Section 23]
• Striking gear or devices for cutting of power .[Section 24]
• Prohibition of women and children near cotton openers.[Section
27]

Safety
• Hoists and lifts should be in good condition and tested periodically.
[Section 28 and 29].
• Pressure plants should be checked as per rules. [Section 31].
• Floor, stairs and means of access should be of sound construction and
free form obstructions. [Section 32].
• Safety appliances for eyes, dangerous dusts, gas, and fumes should be
provided. [Sections 35 and 36].
• Worker is also under obligation to use the safety appliances. He should not
misuse any appliance, convenience or other things provided. [Section
111].
• In case of hazardous substances, additional safety measures have been
prescribed. [Sections 41A to 41H].
• Adequate fire fighting equipment should be available.[Section 38].

Working Hours
• A worker cannot be employed for more than 48 hours in a
week. [Section 51].
• Weekly holiday is compulsory. If he is asked to work on
weekly holiday, he should have full holiday on one of three
days immediately or after the normal day of holiday.
[Section 52(1)].
• He cannot be employed for more than 9 hours in a day.
[Section 54].

Working Hours
• At least half an hour rest should be provided after 5 hours.
[Section 55].
• Total period of work inclusive of rest interval cannot be more
than 10.5 hours. [Section 56].
• A worker should be given a weekly holiday. Overlapping of
shifts is not permitted. Work shall not be carried on in any
factory by means of a system of shifts so arranged that more
than one relay of workers is engaged in work of the same kind
at the same time. [Section 58].
• Notice of period of work should be displayed. [Section 61].

Overtime Wages
• If a worker works beyond 9 hours a day or 48 hours a week, overtime
wages are double the rate of wages are payable. [Section 59(1)].
• However, overtime wages are not payabl e when t he
worker i s on t our . Total working hours including
overt i me s houl d not exceed 60 i n
a week. Regi s t er of overt i me should be
maintained. An employee working out s i de t he f ac t ory
premi s es like field workers etc. on tour outside headquarters are not entitled
to overtime.
• A workman cannot work in two factories. There is restriction on double

Employment of Women
• A woman worker cannot be employed beyond the hours 6
a.m. to 7.00 pm.
• State Government can grant exemption (not more than 3
years) to any factory or group or class of factories, but no
woman can be permitted to work during 10 PM to 5 AM.
• Shift change can be only after weekly or other holiday and
not in between. [Section 66].

Night Shift for women
• Factories Act has been proposed to be amended to allow night shift
for women workers. The Government has decided to amend Section
66 of the Factories Act, 1948 to allow employment of women
workers between 7.00 pm and 6.00 am.
• The demand of women’s organisations and in tune with the present
economic globalization, the Government has decided to bring in then
required changes in the Act. This flexibility would be available to all
manufacturing units including the apparel sector. This decision has
been taken after meetings with the representatives of the employers
and the trade unions.
• The proposed Bill will empower the State Governments for allowing
the necessary flexibility in employment of women during night shift in
factories.

Contd.
• The proposed amendment would also provide that the
employer has to ensure occupational safety and adequate
protection to the women workers.
• However, the State Government or any person authorised
by it would be allowing employment of women during night
only after consulting the workers or their representative
organisations and concerned employers or their
representatives.
• The State Governments are also empowered to frame their
own rules for allowing such permissions.

Record of Workmen
[Section 62].
• The manager of every factory shall maintain a register of adult workers,
to be available to the Inspector at all times during working hours, or when
any work is being carried on in the factory, showing—
(a) the name of each adult 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;
(e) such other particulars as may be prescribed: Provided that, if the
Inspector is of opinion that any muster roll or register maintained as
part of the routine of a factory gives in respect of any or all the workers
in the factory the particulars required under this section, he may, by
order in writing, direct that such muster roll or register shall to the
corresponding extent be maintained in place of, and be treated as, the
register of adult workers in that factory.

Leave
[Section 79]
• A worker is entitled in every calendar year annual leave with wages at the rate
of one day for every 20 days of work performed in the previous calendar
year, provided that he had worked for 240 days or more in the previous
calendar year.
• Child worker is entitled to one day per every 15 days.
• While calculating 240 days, earned leave, maternity leave upto 12 weeks
and lay off days will be considered, but leave shall not be earned on those
days.
• If a worker is discharged or dismissed from service or quits his employment or
is superannuated or dies while in service, during the 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 death

Contd.
• If a worker does not in any one calendar year take the whole of the leave
allowed to him ,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
• 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 he wishes 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.
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

Wages for overtime and Leave
Salary
• Wages for leave encashment and overtime will include
dearness allowance and cash equivalent of any benefit.
However, it will not include bonus or overtime.

Child Employment
• Child below age of 14 should not be employed. [Section 67].
• He should be certified fit by a certifying surgeon. [Section 68].
• Child above 14 but below 15 years of age can be employed only
for 4.5 hours per day or during the night ie. cannot be employed
during night between 10 pm to 6 am. [Section 71].
• A person over 15 but below 18 years of age is termed as
‘adolescent’. He can be employed as an adult if he has a
certificate of fitness for a full day's work from certifying surgeon.
An adolescent is not permitted to work between 7 pm and 6 am.
[Section70].

Contd.
Register of child workers.(Section 73)
(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 on 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 in the register
of child workers.]

Display on Notice Board
• A notice containing abstract of the Factories Act and the
rules made there under, in English and local language
should be displayed.
• Name and address of Factories Inspector and the
certifying surgeon should also be displayed on notice
board. [Section 108(1)].

Notice of Accidents, Diseases Etc
Notice of certain accidents [Section 88].
1[ (1) ] Where in any factory an accident occurs which causes death, or which
causes any bodily injury by reason of which the person injured is prevented
from working for a period of forty-eight hours or more immediately following the
accident, or which is of such nature as may be prescribed in this behalf, the
manager of the factory shall send notice thereof to such authorities, and in
such form and within such time, as may be prescribed.
2[(2) Where a notice given under sub-section (1) relates to an accident causing
death, the authority to whom the notice is sent shall make an inquiry into the
occurrence within one month of the receipt of the notice or, if such authority
is not the Inspector, cause the Inspector to make an inquiry within the said
period.
Notice of certain dangerous occurrences.—Where in a factory any dangerous
occurrence of such nature as may be prescribed occurs, whether causing any
bodily injury or disability or not, the manager of the factory shall send notice
thereof to such authorities, and in such form and within such time, as may be
prescribed [Sections 88A ].

Contd.
Notice of certain diseases. [Sections 89].
(1)Where any worker in a factory contracts any disease specified in
1[the Third Schedule], the manager of the factory shall send notice
thereof to such authorities, and in such form and within such time, as
may be prescribed.
(2) If any medical practitioner attends on a person who is or has been
employed in a factory, and who is, or is believed by the medical
practitioner to be, suffering from any disease specified in 1[the Third
Schedule], the medical practitioner shall without delay send a report
in writing to the office of the Chief Inspector stating—
(a) the name and full postal address of the patient,
(b) the disease from which he believes the patient to be suffering,
(c) the name and address of the factory in which the patient is, or was
last, employed.

Contd.
(3) Where the report under sub-section (2) is confirmed to the
satisfaction of the Chief Inspector, by the certificate of certifying
surgeon or otherwise, that the person is suffering from a disease
specified in 1[the Third Schedule], he shall pay to the medical
practitioner such fee as may be prescribed, and the fee so paid shall
be recoverable as an arrear of land-revenue from the occupier of the
factory in which the person contracted the disease.
(4) If any medical practitioner fails to comply with the provisions of sub-section
(2), he shall be punishable with fine which may extend to
2[one thousand rupees]. 3[(5) The Central Government may, by
notification in the Official Gazette, add to or alter the Third Schedule and
any such addition or alteration shall have effect as if it had been made
by this Act.]

Obligation regarding Hazardous
Processes / Substances
• Information about hazardous substances / processes should be
given.
• Workers and general public in vicinity should be informed about
dangers and health hazards.
• Safety measures and emergency plan should be ready. Safety
Committee should be appointed.

List of Industries Involving Hazardous
Processes - I SCHEDULE
1. Ferrous metallurgical Industries
2.Coal (including coke) industries.
Coal, Lignite, Coke, etc.
3. Power Generating Industries
4. Pulp and paper (including paper products) industries
5. Fertiliser Industries
6. Cement Industries
Portland Cement (including slag cement, cement and their products)
7. Petroleum Industries
Oil Refining
8. Lubricating Oils and Greases
9. Petro-chemical Industries
10. Drugs and Pharmaceutical Industries
Etc.

Permissible Levels of Certain Chemical
Substances in Work Environment
S. No Substance
Permissible limits of exposure
Time-weighted average
Concentration (8hrs)M
Short-term exposure limit
(15min)*
ppm mg/m3** ppm mg/m3**
Schedule II
1. Acetaldehyde 100 180 150 270
2. Acetic acid 10 25 15 37
3. Acetone 750 1780 1000 2375
4. Acrolein 0.1 0.25 0.3 0.8
5. Acrylo nitrile-Skin 2 4.5 - -
6. Aldrin-skin - 0.25 - -
7. Allylchloride 1 3 2 6
8. Ammonia 25 18 35 27
9. Aniline-Skin 2 10 - -
10. Anisidine (o-p-isomers) Skin 0.1 0.5 - -

Schedule III
LIST OF NOTIFIABLE DISEASES
1. Lead poisoning including poisoning by any preparation or compound of
lead or their sequelae.
2. Lead-tetra-ethyl poisoning.
3. Phosphorus poisoning or its sequelae.
4. Mercury poisoning or its sequelae.
5. Manganese poisoning or its sequelae.
6. Arsenic poisoning or its sequelae.
7. Poisoning by nitrous fumes.
8. Carbon bisulphide poisoning.
9. Benzene poisoning, including poisoning by any of its homologues, their
nitro or amide derivatives or its sequelae.
10. Chrome ulceration or its sequelae.

Karnataka Shops and Commercial
Establishment Act 1961
Commercial Establishment
• An establishment which carries on any trade, business,
profession or any work in connection with or incidental or
ancillary to any such trade, business or profession.
• This Act covers the regulation of conditions of work and
employment in shops and commercial establishments like:
-registration
–hours of work
–overtime and weekly holidays
–annual leave with wages
–maintenance of records
–Prohibition of employment of children and women, enforcement and
inspection

Karnataka Shops and Commercial
Establishment Act 1961
Object and Application of the Act [Section 1]
The Act aims to provide for the regulation of conditions of work and
employment in shops and commercial establishments in the state of
Karnataka.
The act extends to whole State of Karnataka. The Act, in the first
instance applies to the areas specified in the Schedule attached to
the Act. The Government is authorized to bring in other areas under
the operation of the act.

Definitions [Section 2]
1) Adult [Section 2(a)]: A person who has completed his eighteenth year.
2) Apprentice [Section 2(b)]: “Apprentice” means a person aged not less than fourteen
years, who is employed whether on payment of wages or not for the purpose of
being trained in any trade, craft or employment in any establishment.
3) Banking Company [Section 2 (ba)]: Banking company means:
i) The Reserve Bank of India;
ii) The Banking Company as defined under the Banking Regulations, Act, 1949;
iii) The State Bank of India constituted under the State Bank of India Act, 1955;
iv) A Subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act,1959;
v) A corresponding new bank constituted under the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970;
vi) A corresponding new bank constituted under the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1980.

Contd.
4) Child [Section 2 (c)]: A person who has not completed his fourteenth
year.
5) Commercial Establishment [Section 2 (e)]: It means:
i) A commercial or trading or banking or insurance establishment, or
ii) An establishment or administrative service in which persons employed or
mainly engaged in office work, or
iii) A hotel, restaurant, boarding or eating house, a cafe or any other
refreshment house, or
iv) A theatre or any other place of public amusement or entertainment. and
includes such establishments as the State Government may by notification
declare to be a commercial establishment for the purposes of this Act.

6) Employee [Section 2(g)]: Employee means a person wholly or principally
employed in or in connection with, any establishment whether working on
permanent, periodical, contract or piece rate wages, or on commission basis,
even though he receives no reward for his labor and includes an apprentice, any
clerical or other member of the staff of a factory or industrial establishment who
falls outside the scope of the Factories Act, 1948.
7) Employer [Section 2(h)]: Employer means a person having charge of or owning
or having ultimate control over the affairs of an establishment and includes
members of the family of an employer, a manager, agent or other person acting
in the general management or control of an establishment;
8) Establishment [Section 2(i)]: It means a shop or a commercial establishment.
9) Register of Establishments [Section 2(s)]: Register of establishments means a
register maintained for the registration of establishments under this Act.

10) Registration Certificate [Section 2(t)]: Registration certificate means a
certificate showing the registration of an establishment;
11) Shop [Section 2(u)]: Shop means any premises where any trade or business is
carried on or where services are rendered to customers, and includes offices,
storerooms, godwns, or warehouses, whether in the same premises or
otherwise, used in connection with such trade or business, but does not include
a commercial establishment or a shop attached to a factory where the persons
employed in the shop fall within the scope of the Factories Act, 1948.
12) Spread Over [Section 2 (v)]: It means the period between the commencement
and the termination of the work of an employee on any day;
13) Young Person [Section 2 (z)]: It means a person who is not a child and who
has not completed his eighteenth year.

Exemptions [Section 3]
This act is not applicable to:
1) Officers of or under the Central or State Governments or local
authorities, except commercial undertakings;
2) Any railway service, water transport service postal telegraph or
telephone service, any system of Public conservancy or sanitation or any
industry, business or undertaking which supplies power, light or water to
the public;
3) Railway dining cars;
4) Establishments for the treatment or care of the sick, infirm, or the mentally
unfit;
5) Establishments of the Food Corporation of India.
6) Offices of legal practitioners and medical practitioners in which not
more than three persons are employed;
7) Officers of a banking company;

Contd.
8) Any person employed about the business of any establishment
mentioned in clause (a) to (g) aforesaid;
9) Person occupying positions of management in any establishment;
10) Persons whose work is inherently intermittent such as drivers,
caretakers, watch and ward staff, or canvassers; and
11) Persons directly engaged in preparatory or complementary work, such
as clearing and forwarding clerks responsible for the dispatch of goods.
Section 3(2) of the Act gives a list of establishments for which Sections
11 (which deals with opening and closing hours of establishments) and
sub-section (1) of Section 12 (dealing with weekly holidays) are not
applicable.

Registration of Establishments
1) Registration of Establishments [Section 4]:
Within 30 days from the date of commencement of work in an establishment, the
employer of every establishment shall send to the Inspector of the area
concerned, a statement in the prescribed form together with such fees as may
be prescribed, containing:
i) The name of the employer and the manager, if any;
ii) The postal address of the establishment;
iii) The name, if any , of the establishment; and
iv) Such other particulars as may be prescribed.
On receipt of the statement and the fees, the Inspector shall, on being satisfied
about the correctness of the statement, register the establishment in the register
of establishments and shall issue, a registration certificate to the employer.
The registration certificate shall be prominently displayed at the establishment. A
registration certificate shall be valid for five years and shall be renewed before
the expiry of the period of registration certificate.

2) Change to be Communicated to Inspector [Section 5]:
The employer shall notify to the Inspector, in the prescribed form any change in
respect of any information contained in his statement given earlier, within fifteen
days after the change has taken place. The Inspector shall, on receiving
such notice and on being satisfied about its correctness, make the change in the
register of establishments and shall amend the registration certificate or issue a
fresh registration certificate, if necessary.
3) Closing of Establishment to be Communicated to Inspector [Section 6]: The
employer, shall within fifteen days of his closing the establishment, notify to the
Inspector in writing the date of such closure and return the registration
certificate. The Inspector shall, on receiving the information and being satisfied
about correctness, remove such establishment from the register of
establishments and cancel the registration certificate.

4) Issue of Appointment Orders [Section 6A]: Every employer,
employing any person in or in connection with is establishment, shall
issue an appointment order in writing indicating the name, designation,
wage scale of such person and terms and conditions of his employment
and serve the same on such person within 30 days from the date of
appointment in his establishment.

Daily and Weekly Hours of Work
[Section 7]
1) No employee in any establishment shall be required or allowed to work for more
than nine hours on any day or forty-eight hours in any week.
2) The total number of hours of work including overtime shall not exceed ten hours
in any day except on days of stock taking and preparation of accounts.
3) The total number of overtime hours worked by an employee shall not exceed fifty
in a period of three continuous months.
4) No young person shall be allowed to work in any establishment for more than five
hours in a day.
[Section 8]
1) Where an employee works in any establishment for more than nine hours in any
day or for more than forty-eight hours in any week he shall in respect of such
overtime work be entitled to wages at twice the rate of normal wages.

Interval Of Work [Section 9]
The periods of work of an employee in an establishment each
shall be so fixed that no period shall exceed five hour and that
no such person shall work for more than five hour before he has
had an interval of rest of at least one hour.
Spreadover [Section 10]
The periods of work of an employee in an establishment shall be
so fixed that, inclusive of his interval for rest, they shall not
spread over more than twelve hours in any day.

Weekly Holidays [Section 12]
1) Every establishment shall remain closed for one day of the week. The
employer shall fix such date and notify it to the Inspector and specify it in a
notice prominently displayed in a conspicuous place in the establishment.
2) The State Government may allow an establishment to remain open
throughout the week if it is satisfied that the establishment employs
additional staff for meeting the requirements of sub-section (3) of this
section.
3) Every employee in an establishment shall be given at least one whole day in
a week as a holiday for rest.
4) It shall not be lawful for an employer to call an employee at, or for an
employee to go to, his establishment or any other place for any work in
connection with the business of his establishment on a day on which such
establishment remains closed.

Selling Outside Establishments Prohibited after closing Hours
[Section 13]
No person shall carry on, in or adjacent to a street or public place, the
sale of any goods after the hour (if a closing hour is fixed by the
government) for the closing of establishments dealing in the same class
of goods in the locality in which such street or public place is situated.

Annual Leave with Wages
[Section 15]
1) Every employee in an establishment shall be entitled to leave with wages and
shall be to avail such leave for the number of days calculated at the rate of:
i) One day for every twenty days works performed by him in case of an adult;
ii) One day for every fifteen days of work performed by him in case of a young
person; If an employee does not in any one calendar year take the whole of the
leave allowed to him, any leave not taken by him shall be added to the leave to
be allowed to him in the succeeding calendar year. However the total number of
the days of leave that may be carried forward to a succeeding year shall not
exceed thirty days in the case of an adult and forty days in the case of a young
person.
An employee may at any time apply in writing to the manager of the
establishment, not less than ten days before the date on which he wishes his
leave to begin, to take all the leave or any portion thereof allowable to him during
the calendar year. However the number of times in which leave may be taken
during any year shall not exceed three.

contd
2) Every employee shall also be entitled during the first twelve months
of continuous service and during every subsequent twelve months
of such service in any establishment to leave with wages for a
period not exceeding twelve days, on the ground of any sickness
incurred or accident sustained by him or for any other reasonable
cause. For this leave, prior notice/ application may not be required

Application of the Workmen’s Compensation
Act [Section 22]
The provisions of the Workmen’s Compensation Act, 1923
and there under by the State Government shall apply to
employees and employers of shops and commercial
establishments the rules made.

Employment of Children and Women
[Section 24-25]
1) No child shall be required or allowed to work in any establishment.
2) No woman, or a young person shall be required or allowed to work whether as
an employee or otherwise in any establishment during nights. The State
Government may, by notification exempt any establishment of Information
Technology or Information Technology enabled service from the provisions of
this section relating to, employment of women during night subject to the
condition that the establishment provides facilities of transportation and
security to such women employees and subject to any other condition as may
be specified in the notification.

Inspectors [Section 26]
The State Government may appoint Inspectors and
Assistant Inspectors for the purposes of this Act. The
Commissioner of Labor in Karnataka shall be the Chief
Inspector for the purposes of this Act, for the whole of
the State of Karnataka.

Powers and Duties of Inspectors
[Section 27]
Subject to any rules made by the State Government in this behalf, an Inspector
may, within the area in his jurisdiction:
1) Enter, at all reasonable times and with such assistants, if any, being persons
in the service of the State Government, as he thinks fit, any place which is or
which he has reasons to believe is, an establishment;
2) Make such examination of the premises and of any prescribed registers,
records and notices, and take on the spot or otherwise, evidence of any
person as he may deem necessary, for carrying out the purposes of this Act;
and
3) Exercise such other powers as may be necessary for carrying out the
purposes of this Act. However, no person shall be required under this
section to answer any question or give any evidence tending to incriminate
himself.

Penalties [Section 30]
1) Whoever contravenes any of the provisions of Sections 4,5,6,6-
A,7,9,10,11,12,13,15,16, 25 and 39, shall, on conviction, be punished with fine,
which , for a first offence, may extend to one thousand rupees and, for a second
or any subsequent offence may extend to two thousand rupees.
2) Whoever contravenes any of the provisions of Sections 8, 17, 29 and 34 shall, on
conviction, be punished with a fine which may extend to two hundred and fifty
rupees.
3) Whoever contravenes the provisions of sections 24 and 25, shall be punishable
with imprisonment for a term which shall not be less than three months but which
may extend to six months or with fine which shall not be less than ten thousand
rupees, but which may extend to twenty thousand rupees or with both, for the
first offence and for the second and subsequent offences, he shall be
punishable with imprisonment of a term which shall not be less than six months
but which may extend to one year.

4) Any person who wilfully obstructs an Inspector in the exercise of any
power conferred on him under this Act, or any person lawfully assisting
an Inspector in the exercise of such power or who fails to comply with
any lawful direction made by an Inspector shall be punishable with fine
which may extend to five hundred rupees.

Miscellaneous
1) Maintenance of Registers and Records and Display of Notices [Section 34]:
Subject to the general or special orders of the State Government, an employer
shall maintain such registers and records and display on the premises of his
establishment, such notices as may be prescribed. All such registers and
records shall be kept on the premises of the establishment to which they relate.
2) Saving of Certain Rights and Privileges [Section 35]:
Nothing in this Act shall affect any rights or privileges which an employee in any
establishment is entitled to under any other law, contract, custom or usage,
applicable to such establishment, or any award, settlement or agreement binding
on the employer and the employee in such establishment, if such rights or
privileges are more favourable to him than those to which he would be entitled
under this Act.

3) Indemnity [Section 36]: No suit, prosecution or other legal proceedings shall lie
against the State Government or any officer of the State Government for
anything which is in good faith done or intended to be done under this Act.
4) Delegation of Powers [Section 37]:
i) The State Government may, by notification, authorize any officer or authority,
subordinate to it, to exercise any one or more of the powers vested in it by or
under this Act, except the powers under sub-sections (3) and (4) of Section 1,
sub-sections (3) and (4) of Section 3, Section 19, Section 20, Section 21,
Section 26 and Section 40 subject to such restrictions and conditions, if any, as
may be specified in the notification.
ii) The exercise of the powers delegated under sub-section (1) shall be subject to
control and revision by the State Government or by such persons as may be
empowered by it in that behalf. The State Government shall also have power to
control and revise the acts and proceedings of any person so empowered.

5) Power of Government to Suspend Provisions of the Act
during Fairs and Festivals [Section 38]
On any special occasion in connection with a fair or festival or a
succession of public holidays, the State Government may, by
notification, suspend for a specified period the operation of all or any of
the provisions of this Act.

6) Notice of Dismissal [Section 39]:
i) No employer shall remove or dismiss an employee who has put in service under
him continuously for a period of not less than six months, except for a
reasonable cause and unless and until one month’s previous notice or pay in lieu
thereof has been given to him. However, where misconduct of an employee is
brought on record with proof at an enquiry held for the purpose, he shall not be
entitled to the notice or pay in lieu of such notice.
ii) An employee removed or dismissed under sub-section (1) of Section 39 shall
have a right of appeal to such officers having jurisdiction over such areas or
such classes of employees as may be prescribed on the ground that there was
no reasonable cause for the removal or dismissal or that he has not been guilty
of misconduct as held by the employer

7) Power to Make Rules [Section 40]
i) The State Government may by notification, make rules to carry-out the
purposes of this Act.
ii) In particular and without prejudice to the generality of the foregoing
power, rules made under sub-section (1) may provide in respect of the
health and safety and welfare of employees.
iii) In making rules under this section, the State Government may provide
that a contravention of any rule shall be punishable with a fine which
may extend to ten thousand rupees.

Contract Labour (Regulation & Abolition)
Act, 1970

Objective of the Act
The Object of the Contract Labour Regulation and Abolition) Act, 1970 is
to prevent exploitation of contract labour and also to introduce better
conditions of work.
A workman is deemed to be employed as Contract Labour when he is
hired in connection with the work of an establishment by or through a
Contractor. Contract workmen are indirect employees.
Contract Labour differs from Direct Labour in terms of employment
relationship with the establishment and method of wage payment.
Contract Labour, by and large is not borne on pay roll nor is paid
directly. The Contract Workmen are hired, supervised and remunerated
by the Contractor, who in turn, is remunerated by the Establishment
hiring the services of the Contractor.

Short title, extent, commencement
and application [Section 1]
(1) This Act may be called the Contract Labor (Regulation and Abolition)
Act, 1970
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may,
by notification in the Official Gazette, appoint and different dates may
be appointed for different provisions of this Act.
(4) It applies-
(a) to every establishment in which twenty or more workmen are
employed or were employed on any day of the preceding twelve
months as contract labor;
(b) to every contractor who employs or who employed on any day of
the preceding twelve months twenty or more workmen:

Definitions [Section 2]
Section 2 (c) :CONTRACTOR
“Contractor", in relation to an establishment, means a person who
undertakes to produce a given result for the establishment, other than a
mere supply of goods or articles of manufacture to such establishment,
through contract labour or who supplies contract labour for any work of
the establishment and includes a sub-contractor

Section 2 (i) WORKMEN
“Workman" means any person employed in or in connection with the
work of any establishment to do any skilled, semi-skilled or un-skilled
manual, supervisory, technical or clerical work for hire or reward, whether
the terms of employment be express or implied, but does not include
any such person:
(A) Who is employed mainly in a managerial or administrative
capacity; or
(B) Who, being employed in a supervisory capacity draws wages
exceeding five hundred rupees per mensem or exercises, either by the
nature of the duties attached to the office or by reason of the powers
vested in him, functions mainly of a managerial nature; or
(C) Who is an out-worker, that is to say, a person to whom any
articles or materials are given out for certain process to return them
back.

“Principal Employer" means-
(i) in relation to any office or department of the government or a local
authority, the head of that office or department or such other officer as
the government or the local authority; as the case may be, may specify
in this behalf,
(ii) in a factory, the owner or occupier of the factory and where a person
has been named as the manager of the factory under the Factories Act,
1948 (63 of 1948), the person so named.
(iii) in a mine, the owner or agent of the mine and where a person has been
named as the manager of the mine, the person so named,
(iv) in any other establishment, any person responsible for the
supervision and control of the establishment.

ADVISORY BOARDS
[Section 3-5]
• Section 3 :Central Advisory Contract Labor Board
• Section 4 : State Advisory Contract Labor Board
• Section 5 : Power to constitute committees

3. Central Advisory Board
(1) The Central Government shall, as soon as may be, constitute a Board to be
called the Central Advisory Contract Labor Board (hereinafter referred to as the
Central Board) to advise the Central Government on such matter arising out of
the administration of this Act as may be referred to it and to carry out other
functions assigned to it under this Act.
(2) The Central Board shall consist of-
(a) a Chairman to be appointed by the Central Government;
(b) the Chief Labor Commissioner (Central), ex officio;
(c) such number of members, not exceeding seventeen but not less than
eleven
(3) The number of persons to be appointed as members from each of the categories
specified in sub-section (2), the term of office and other conditions of service of,
the procedure to be followed in the discharge of their functions by, and the
manner of filling vacancies among, the members of the Central Board shall be
such as may be prescribed:
PROVIDED that the number of members nominated to represent the workmen
shall not be less than the number of members nominated to represent the
principal employers and the contractors.

State Advisory Board
(1) The State Government may constitute a Board to be called the State Advisory
Contract Labor Board (hereinafter referred to as the State Board) to advise the
State Government on such matters arising out of the administration of this Act as
may be referred to it and to carry out other functions assigned to it under this Act.
(2) The State board shall consist of-
(a) a Chairman to be appointed by the State Government;
(b) the Labor Commissioner, ex officio, or in his absence any other officer nominated by the
State Government in that behalf;
(c) such number of members, not exceeding eleven but not less than nine
(3) The number of persons to be appointed as members from each of the categories
specified in sub-section (2), the term of office and other conditions of service of,
the procedure to be followed in the discharge of their functions by, and the manner
of filling vacancies, among, the members of the State Board shall be such as may
be prescribed:
PROVIDED that the number of members nominated to represent the workmen
shall not be less than the number of members nominated to represent the principal
employers and the contractors.

5. Power to constitute committees
(1) The Central Board or the State Board, as the case may be, may constitute
such committees and for such purpose or purposes as it may think fit.
(2) The committee constituted under sub-section (1) shall meet at such time
and places and shall observe such rules of procedure in regard to the
transaction of business at its meetings as may be prescribed.
(3) The members of a committee shall be paid such fees and allowances for
attending its meetings as may be prescribed:
PROVIDED that no fees shall be payable to a member who is an officer of
government or of any corporation established by any law for the time being
in force.

Registration Of Establishments
Employing Contract Labour
(Sec. 6-10)
• Appointment of registering officers (Sec. 6)
• Registration of certain establishments (Sec. 7)
• Revocation of registration (Sec. 8)
• Effect of non-registration (Sec. 9)
• Prohibition of employment of contract labour (Sec. 10)

Appointment of registering officers (Sec. 6)
• Appointed by the Appropriate Govt. By notification in the official gazette
• Appoint such persons and define the limits, within which a registering
officer shall exercise the powers conferred on him by or under this Act.

Registration of certain establishments (Sec. 7)
1. Every principal employer of an establishment to which this Act applies
shall, make an application to the registering officer in the prescribed
manner for registration of the establishment (fee Rs. 20 to 500 relating to
no. of workmen employed)
2. If the application for registration is complete in all respects, the
registering officer shall register the establishment and issue to the
principal employer of the establishment a certificate of registration
containing such particulars as may be prescribed.

Revocation of registration (Sec. 8)
• If the registering officer is satisfied that, the registration of any
establishment has been obtained by misrepresentation or suppression
of any material fact, or that for any other reason the registration has
become useless or ineffective.
Effect of non-registration (Sec. 9)
• In case an establishment required to be registered under Section 7 is
not been registered within the time fixed for the purpose under that
section, then punishment will be given as per section 36.

Prohibition of employment of contract labour (Sec. 10)
The appropriate Government may, after consultation with the Central Board or,
as the case may be, a State Board, prohibit, by notification in the Official
Gazette, employment of contract labour in any process, operation or other work
in any establishment. The appropriate Government shall have regard to the
conditions of work and benefits provided for the contract labour in that
establishment and other relevant factors, such as –
a) Whether the process, operation or other work is incidental to, or necessary
for the industry, trade, business, manufacture or occupation that is carried on in
the establishment
b) Whether it is of perennial nature, that is to say, it is of sufficient duration having
regard to the nature of industry, trade, business, manufacture or occupation that
is carried on in that establishment
c) Whether it is done ordinarily through regular workmen in that establishment or
an establishment similar there off Whether it is sufficient to employ considerable
number of whole-time workmen.

LICENSING OF CONTRACTORS
(Section 11- 15)
Section 11: Appointment of licensing officers
Section 12: Licensing of contractors
Section 13: Grant of licences
Section 14: Revocation, suspension and amendment of licences
Section 15: Appeals

Section 11: Appointment of licensing officers
• Appoint such persons and define the limits, within which a licensing
officer shall exercise the powers conferred on him by or under this Act.
Section 12: Licensing of contractors
• Licence is not transferable. (fees Rs. 15 to 375 depending upon the no.
Of workmen employed by contractor and along with security is also
deposited).
• No Contractor to whom the act applies can undertake or execute any
work through contract labour except under and in accordance with a
licence issued in that behalf by the licensing officer.
• Provisions of this act may contain such conditions including,
– Hours of work
– Fixation of wages
– Other essential amenities

Section 13: Grant of licences
1. Every application for the grant of a licence under subsection (1) of
section 12 shall be made in the prescribed form and shall contain the
particulars;
2. The licensing officer may make investigation;
3. A licence granted shall be valid for the period specified therein (generally
12 months) and may be renewed from time to time.

Section 14: Revocation, Suspension and Amendment of Licences
If the licensing officer is satisfied, either on a reference made to him in this
behalf or otherwise, that Obtained by misrepresentation or suppression of
any material fact Failed to comply with the conditions subject to which the
licence has been granted
The licensing officer may vary or amend a licence granted under Section 12.
He has also the power to forfeit the sum, if any, or any portion thereof
deposited as security for the due performance of the conditions subject to
which the licence was granted
Section 15: Appeals
• The aggrieved person may within 30 days from the days on which the order
is communicated to him prefer appeal to appellate officer who shall be a
person nominated by the appropriate govt. for this purpose.
• Period of 30 days can be extended if there is any sufficient cause.

Welfare And Health
(Sections 16-21)
Section 16: Canteen
Section 17: Rest-rooms
Section 18: Other facilities
Section 19: First-aid facilities
Section 20: Liability Of Principal Employer In Certain Cases
Section 21: Responsibility For Payment Of Wages

Section 16: Canteen
1. Appropriate Government may make rules:(a) to which this Act applies, (b)
Wherein work requiring employment of contract labour is likely to continue for
such period as may be prescribed, and (c) wherein contract labour numbering
one hundred or more is ordinarily employed by a contractor, one or more
canteens shall be provided and maintained by the contractor for the use of such
contract labour.
2. Without prejudice to the generality of the foregoing power, such rules may provide
for:
(a) The date by which the canteens shall be provided;
(b) The number of canteens that shall be provided, and the
standards in respect of construction, accommodation, furniture
and other equipment of the canteens;
(c) The foodstuffs which may be served therein and the charges
which may be made thereof.

Section 17: Rest-rooms
1. In every place wherein contract labour is required to halt at night in connection
with the work of an establishment:
(a) To which this Act applies, and
(b) In which work requiring employment of contract labour is likely to
continue for such period as may be prescribed,
2. The rest rooms or the alternative accommodation to be provided under
subsection (1) shall be sufficiently lighted and ventilated and shall be maintained
in a clean and comfortable condition
Section 18: Other facilities
It shall be the duty of every contractor employing contract labour to provide and
maintain:
a) A sufficient supply of wholesome drinking water b) A sufficient number of
latrines and urinals situated as to be convenient and accessible to the contract
labour and c) Washing facilities ·

Section 19: First-aid facilities
• There shall be provided and maintained by the contractor so as to be readily
accessible during all working hours a first-aid box equipped with the prescribed
contents at every place where contract labour is employed by him.
Section 20: Liability Of Principal Employer In Certain Cases
1. If any amenity required to be provided for the benefit of the contract labour
employed in an establishment is not provided by the contractor within the time
prescribed thereof, such amenity shall be provided by the principal employer
within such time as may be prescribed.
2. All expenses incurred by the principal employer in providing the amenity may
be recovered by the principal employer from the contractor either by deduction
from any amount payable to the contractor under any contract or as a debt
payable by the contractor.

Section 21: Responsibility For Payment Of Wages
1.A contractor shall be responsible for :- Ø Payment of wages to each worker
employed by him Ø Shall be paid before the expiry of such period as may be
prescribed.
2.Duty of principle employer Ø Shall nominate a representative to be present at
the time of disbursement of wages Ø Shall be the duty of such representative to
certify the amounts paid as wages in such manner
3.It shall be the duty of the contractor to ensure the disbursement of wages in the
presence of the authorized representative of the principal employer.
4.In case the contractor fails to make payment of wages within the prescribed
period or makes short payment, Ø Then the principal employer shall be liable to
make payment of wages in full or the unpaid balance due, Ø Recover the
amount so paid from the contractor either by deduction from any amount payable
to the contractor under any contract or as a debt payable by the contractor.

• Section 26: Cognizance of offences
No Court shall take cognizance of any offence under this Act except on
a complaint made by, or with previous sanction in writing of, the
inspector and no court inferior to that of a Presidency Magistrate or a
magistrate of the first class shall try any offence punishable under this
Act.
• Section 27: Limitation of prosecutions
No Court shall take cognizance of an offence punishable under this Act
unless the complain thereof is made within three months from the date
on which the alleged commission of the offence came to the knowledge
of an inspector.
Provided - that where the offence consists of disobeying a written order
made by an inspector, complaint thereof may be made within six months
of the date of which the offence is alleged to have been committed.

Section 28: Inspecting Staff –
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, and define the local limits within which they shall
exercise their powers under this Act.
2) Subject to any rules made in this behalf, an inspector may, within the
local limits for which he is appointed.
Section 29 :Maintenance of registers and records
• The registers and records to be maintained, the notices to be
displayed and the return to be submitted by the contractor and the
principal employer to the registering officer or/and licensing officer as
explained in the rules of this act by central / state govt.

Section 31: Power to exempt in Special Cases - The appropriate
Government may, in the case of an emergency, direct, by notification in
the Official Gazette, that subject to such conditions and restrictions, if any,
and for such period or periods, as may be specified in the notification, all
or any of the provisions of this Act or the rules made there under shall not
apply to any establishment or class of establishments or any class of
contractors.

TTHHEE OOBBJJEECCTT
¤ To meet the increasing demand for skill craftsmen.
¤ To utilize facilities available for training apprentices.
¤ To ensure their training in accordance with plan programme.
¤ Promotion of new man power skill.
¤ Improvement & refinement of old skill.

Short title, extent, commencement and application
[Section1]
(1) This Act may be called the Apprentices Act, 1961.
(2) It extends to the whole of India
(3) It shall come into force on such date as the Central Government may,
by notification in the Official Gazette, appoint; and different dates may
be appointed for different States.
(4) The provisions of this Act shall not apply to--
– Any area or to any industry which is not notified to the Central
Government.
– Any special apprenticeship schemes for imparting training
to apprentices as notified by Central Govt. in Official Gazette
separately.

Definitions[Section2]
• All India Council : All India Council of Technical Education established
by Govt. of India.
• Apprentice : A person who is undergoing apprenticeship in pursuance
of contract of apprenticeship
• Apprenticeship training: A course of training in any establishment or
industry
• Apprenticeship Advisor : Central Apprenticeship Advisor or the State
Apprenticeship Advisor appointed under the Act.
• Apprenticeship Council: Central Apprenticeship Council or
Apprenticeship Council (State) under the provisions of the Act.

Qualifications for being engaged as an
apprentice [Section 3]
A person shall not be qualified for being engaged as an
apprentice to undergo apprenticeship training in any designated
trade, unless he—
(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

Reservation of training places for the Scheduled
Castes and the Scheduled Tribes in designated
trades -Section 3(A)
(1) In every designated trade, training places shall be reserved by the
employer for the Scheduled Castes and the Scheduled Tribes [and
where there is more than one designated trade in an establishment,
such training places shall be reserved also 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
be such as may be prescribed, having regard to the population of the
Scheduled Castes and the Scheduled

Contract of apprenticeship
[Section 4]
(1) No person shall be engaged as an apprentice to undergo
apprenticeship training in a designated trade unless such person or, if
he is a minor, his guardian has entered into a contract of
apprenticeship with the employer.
(2) The apprenticeship training shall be deemed to have commenced on
the date on which the contract of apprenticeship has been entered 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 there under.

Contd.
4) Every contract of apprenticeship entered into under sub- section (1) shall be
sent by the employer within such period as may be prescribed 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 an apprentice in the
contract is qualified under this Act for being engaged as an apprentice to
undergo apprenticeship training in the designated trade specified in the
contract.
(6) Where the Central Government, after consulting the Central Apprenticeship
Council, makes any rule varying the terms and conditions of apprenticeship
training of any category of apprentices undergoing such training, then, the
terms and conditions of every contract of apprenticeship relating to that
category of apprentices and subsisting immediately before the making of
such rule shall be deemed to have been modified accordingly.]

Novation of contract of apprenticeship
[Section5]
Where an employer with whom a contract of apprenticeship has been
entered into, is for any reason unable to fulfil his obligations under the
contract and with the approval of the Apprenticeship Adviser it is agreed
between the employer, the apprentice or his guardian and any other
employer that the apprentice shall be engaged as an apprentice under
the other employer for the unexpired portion of the period of
apprenticeship training, the agreement, on registration with the
Apprenticeship Adviser, shall be deemed to be the contract of
apprenticeship between the apprentice or his guardian and the other
employer, and on and from the date of such registration, the contract of
apprenticeship with the first employer shall terminate and no obligation
under that contract shall be enforceable at the instance of any party to
the contract against the other party thereto

Period of apprenticeship training
[Section 6]
• 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 conducted by that Council or by an institution recognised by that
Council or by an institution recognised by that Council], the period of
apprenticeship training shall be such as may be determined by that Council.
(b) 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, by notification 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

OBLIGATIONS OF AN APPRENTICE TO
ACCEPT EMPLOYMENT FROM
EMPLOYER
• It is not obligatory on the part of the employer to
offer any apprentice who has completed his period
of apprenticeship

OBLIGATIONS OF THE APPRENTICE
Every trade apprentice undergoing apprenticeship training shall have the
following obligations, namely:-
1)To learn his trade conscientiously and diligently and Endeavour to qualify
himself as a skilled craftsmen before the expiry of the period of training;
2)To attend practical and instructional classes regularly;
3)To carry out all lawful orders of his employer and superiors in the
establishment and
4)To carry out his obligations under the contract of apprenticeship.

OBLIGATIONS OF EMPLOYERS
TOWARS APPRENTICES
Without prejudice to the other provisions of the Act, every employer shall
have the following obligations in relation to an apprentice, namely:-
1)To provide the apprentice with the training in his trade in accordance
with the provisions of the Act, and the rules made there under
2)If the employer is not himself qualified in the trade, to ensure that a
person who possesses the prescribe qualifications is place in charge of the
training of the apprentice; and
3)To carry out his obligations under the contract of apprenticeship

APPRENTICES AN BONUS
• By the very definition of the ‘employee’, the apprentices are
not eligible for bonus as per section 2 (13) of the payment of
bonus Act.

APPRENTICES AND COVERAGE UNER
EMPLOYEES’ PROVIENT FUNDS ACT
• An apprentice is not an ‘employee’ as defined by the
Employees’ Provident Fund and Miscellaneous
Provision Act.
• ‘employees’ provides that it will include any person
engaged as an apprentice, not being an apprentice
engaged under Apprentice Act, 1961

APPRENTICES AND COVERAGE
UNDER EMPLOYEES STATE
INSURANCE ACT
• The Amending Act 29 of employees’ State Insurance Act,
1989 while defining an employee under the ESI Act has
provided that it goes not include any person engaged as an
apprentice under the Apprentices Act 1961 or under the
Standing Orders of the establishment.

Hours of work
• The daily hours of work of an apprentice shall not be more
than 8 hours per day and weekly hours not less than 40
hours but not more than 45 hours.
• A short term apprentice may however be engaged to work
up to a maximum limit of 48 hours per week.
• The hours of training of the apprentice should not be
between 10pm and 6am except with the prior approval of
the apprenticeship adviser.

 An apprentice is entitled to leave in accordance with the
leave rules which exist for the workers of that
establishment provided every apprentice must put in a
minimum attendance of 264 days in a year of training,
 of which1/6th should be devoted to related instructions and
220 days to practical training.

Grant of leave to apprentice
(a) Casual leave :
 Casual leave shall be admissible for a maximum period of
twelve days in a year ;
 Any holidays intervening during the period of casual
leave shall not be counted for purpose of the limit of twelve
days ;
 Casual leave not utilised during any year shall stand
lapsed at the end of the year ;

• Casual leave shall not be combined with medical
leave .
• if casual leave is preceded or followed by medical
leave, the entire leave taken shall be treated either as
medical or casual leave provided that it shall not be
allowed to exceed the maximum period prescribed in
respect of medical or casual leave, as the case may be;
• Except in case of extreme urgency applications for
such leave shall be made to appropriate authority and
sanction obtained prior to the availing of leave.

(b) medical leave :
• Medical leave up to fifteen days of each year of training
may be granted to the apprentice who is unable to attend
duty owing to illness.
• The unused leaves shall be allowed to accumulate up to a
maximum of forty days;

• Any holidays intervening during the period of medical
leave shall be treated as medical leave and accounted for in
the limits prescribed under clause(i)
• The employer may call upon the apprentice to produce a
medical certificate from a registered medical practitioner in
support of his medical leave.

• A medical certificate shall, however , be necessary , if the
leave exceeds six days;
• It shall be open to the employer to arrange a special
medical examination of an apprentice if he has reason to
believe that the apprentice is not really ill or the illness is not
of such a nature as to prevent his attendance.

( c) extraordinary leave :
• Extraordinary leave up to a maximum of ten days in a year
may be granted to the apprentice, after he has exhausted
the entire casual leave and medical leave ,
• if the employer is satisfied with the genuineness of the
ground on which the leave is applied for .

Violation of the act by an employer –
consequences
1.The apprentices act provides that 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) contravene the provisions of the act relating to the number
of apprentices which he is required to engage under
those provisions, 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) requires an apprentice to work over-time without the approval of the
apprenticeship adviser ;or
(b) employs an apprentice on any work which is not connected with his
training; or
(c) makes payment to an apprentice on the basis of piece- work or ;
(d)requires an apprentice to take part in any output bonus or incentive
scheme, he shall be punishable with imprisonment for a term which
may extend to six months or with fine or with both.

TERMINATION OF
APPRENTICESHIP CONTRACT
• On the expiry of the period of apprenticeship training
• Application to the Apprenticeship Adviser for the termination of the
contract
• Send by post a copy to the other party to the contract
• Apprenticeship Adviser may by order in writing terminate the contract

TERMINATION OF CONTRACT-CONSEQUENCES
• On the part of the employer
– Pay the apprentice compensation of an amount equivalent to his
three months’ last drawn stipend
• On the part of the apprentice
– training cost of an amount equivalent to his three months’ last drawn
stipend

STIPEND TO THE APPRENTICE
• Rates of stipend for different categories be asked from the
Apprenticeship Adviser in particular state, wherein the
factory or the establishment is located

EMPLOYMENT EXCHANGE
SPONSORING NOT NECESSARY
• Eligible to be considered for any future appointment, without
being sponsored by any employment exchange

SETTLEMENT OF DISPUTES
• Any disagreement shall be referred to Apprenticeship
adviser
• Aggrieved by the decision of the said Authority, may
within 30 days, prefer an appeal against such decision to
the Apprenticeship Council
• Shall be heard and determined by a Committee of that
Council appointed for the purpose

Penalties
Action/omission Penalty
Imprisonm
ent up to
Fine
• Engaging as an apprentice a
person who is not qualified for
being so engaged
• Failure to carry out terms and
conditions of apprenticeship
contract
• Contravention of the act relating
to number of apprentices which
he is required to engage
Six
months
Not
specified
but can
be
imposed

Imprisonment
up to
Fine
• Refusal to furnish any information or return
• Furnishing false return
• Refusal to answer or giving false
information
• Refusing to extend reasonable facility to
the competent Authority under the Act for
making any entry, inspection, examination
or inquiry
• Requiring Apprentice to work overtime
without approval of the Apprenticeship
Adviser
Six months Not
specified
but can be
imposed

Imprisonmen
t up to
Fine
• Employing an apprentice on work not
connected to his training
• Making payment to an apprentice on the
basis of piece work rate
• Requiring an apprentice to take part in
any output bonus or incentive scheme
Six months Not
specified
but can be
imposed
Contravening the provisions of the Act for
which no punishment is provided
no Up to
Rs.500

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