Key Takeaways:
- Social security for building / construction workers
- Extension of scope to gig / platform workers
- Creation of social security board for unorganised workers
This material is a part of our PGPSE programe. Our programme is available for any student after class 12th / graduation. AFTERSCHO☺OL conducts PGPSE, which is available free to all online students. There are no charges. PGPSE is a very rigorous programme, designed to give a comprehensive training in social entrepreneurship / spiritual entrepreneurship. This programme is aimed at those persons, who want to ultimately set up their own business enterprises which can benefit society substantially. PGPSE is a unique programme, as it combines industry consultancy, business solutions and case studies in addition to spirituality and social concerns. You can read the details at www.afterschoool.tk or at www.afterschool.tk
Key Takeaways:
- Social security for building / construction workers
- Extension of scope to gig / platform workers
- Creation of social security board for unorganised workers
This material is a part of our PGPSE programe. Our programme is available for any student after class 12th / graduation. AFTERSCHO☺OL conducts PGPSE, which is available free to all online students. There are no charges. PGPSE is a very rigorous programme, designed to give a comprehensive training in social entrepreneurship / spiritual entrepreneurship. This programme is aimed at those persons, who want to ultimately set up their own business enterprises which can benefit society substantially. PGPSE is a unique programme, as it combines industry consultancy, business solutions and case studies in addition to spirituality and social concerns. You can read the details at www.afterschoool.tk or at www.afterschool.tk
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
18059386 Indian Industrial Law 4 Major Laws Industrial Dispute Act Payment Of Wages Act Minimum Wages Act Gratuity Act[1]
1. Presented By: SundarGanesh Kumar, S.Y.B.M.S. Sem-III, Roll No.: 44 Vivek College Of Commerce Industrial Law
2. The Industrial Dispute Act, 1947 The Payment Of Wages Act, 1936 The Minimum Wages Act, 1948 The Payment Of Gratuity Act, 1972 Major Industrial Laws
3. Important Definitions Authorities under the Industrial Disputes Act Award & Settlement Strikes Lock-outs Lay Offs Retrenchments Closure Case Law Studies The Industrial Disputes Act, 1947
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5. Employer [S.2(g)]: means-In relation to an industry carried on by or under the authority of any department of the Central Government or a State Government – the authority prescribed in this behalf; In relation to an industry carried on by or on behalf of a local authority – the Chief Executive Officer of that authority. Important Definitions
6. Industrial Dispute [S.2(k)]: means any dispute or difference between- Employers and Employers, or Employers and Workmen, or Workmen and Workmen, which is connected with- The employment or non-employment, or The terms of employment, or The conditions of labour. of any person related directly or indirectly to the industry. Important Definitions
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10. The Act has set up machinery to deal with the Industrial Disputes. These authorities are meant for dealing with the Industrial Disputes. Even though the name authority is used, it does not mean each and every authority has power to make a binding decision. The Authorities are: Works Committee (Section 3) Conciliation Officer (Section 4,11 & 12) Board Of Conciliation (Section 11 & 13) Court Of Inquiry (Section 6,10,11 &14) Labour Court (Section 7,11 &15) Industrial Tribunal (Section 7A,11 & 15) National Tribunal (Section 7b,11 & 15) Authorities under the Act
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12. Settlement (Section 18-21): means a settlement arrived at in the course of conciliation proceedings and includes a written agreement between the employer and workman arrived at, otherwise than in the course of conciliation proceedings where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorized in this behalf by the Appropriate Government and the Conciliation Officer.Award & Settlement
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14. Section 22 says “In case an industry is a public utility service, no person employed in it shall g o on strike in breach of contract- Without giving to the employer notice of a strike, provided within 6 weeks before striking, Within 14 days of giving such notice, or Before the expiry of the date of strike specified in any such notice; or During the pendency of any conciliation proceedings before a conciliation offices and 7 days after the completion of these proceedings” Strikes: in Public Utility Services
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16. The copy of this notice is to be submitted to the conciliation officer, or such authority as may be prescribed by the Appropriate Government.
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18. A fresh notice is necessary when the date of strike specified in the original notice expires.Strikes: in Public Utility Services
19. A new notice is necessary, when the conciliation proceedings fail, which have started after the notice. The object of giving the notice is to allow the other party to come to terms, or to approach the authorities to intervene and stop the strike, if possible. During the period of notice, the parties can respond to each other. Illegality attaches only to that period which remains to expire before the commencement of action. Strikes: in Public Utility Services
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21. No workman who is employed in any Industrial Establishment shall go on strike in the following circumstances:During the pendency of conciliation proceedings before a Board and 7 days after the completion of these proceedings; During the pendency of proceedings before a Labour Court, Industrial Tribunal or National Tribunal, and 2 months after the completion of these proceedings; During the pendency of arbitration proceedings before an arbitrator and 2 months after the completion of these proceedings; where notification has been issued under S 10A(3A) 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. Strikes: General Prohibition
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23. The notice of lock-0ut shall be given in prescribed manner.
24. On event of employer giving notice of lock-out on any day to any person employed by him, he shall report the number of notices given to the Appropriate Government, within 5 days of giving such a notice.Lock-outs
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26. The provisions for general prohibition of lock-outs are dictated under Section 23, same as the provisions of Strikes.
27. The notice of lock-out is not necessary when a lock-out is already existent in case of a public utility service.
28. However, the employer shall send intimation of lock-out to the authority specified by the Appropriate Government, on the day of declaration of lockout itself.Prohibition of Lock-outs
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30. However, the factor of justification of reasons leading to the Act of going on strike, also decide the payment or non-payment of wages to the workmen.
31. If a strike is not justified, but legal; or if a strike is illegal, but duly justified, the workmen are entitled to receive wages for the period of the strike.
32. A lock-out in violation of the statutory requirements is illegal and unjustified and workers are entitled to wages for the lock-out period.
33. For a legal lock-out, no wages are payable to the workmen.Strikes & Lockouts: Wages & Justification
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35. Penalty for illegal strike (S.26): Any workman who commences, continues or acts in furtherance of an illegal strike shall be punishable with imprisonment up to 1 month, or fine up to Rs.50 or both.
36. Penalty for instigation (S.27): Any person who instigates or incites other to take part in a strike or lock-out which is illegal shall be punishable with imprisonment up to 6 months or with fine up to Rs.1000 or both.
37. Penalty for giving financial aid to illegal strikes and lock-outs (S.28): Punishable with imprisonment up to 6 months or fine up to Rs.1000 or both.Strikes & Lock-outs: Penalties
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40. The duration of a Lay-Off should not be longer than that of the current emergency.
41. The employer – workman relationship does not come to an end, but is suspended during the period of emergency.
42. The workman’s name should be essentially present on the muster rolls of the industry for claiming relief.
44. If work is given by the employer on a different shift, it would be considered as a half-day lay-off.
45. If employment is not given within two hours, it would be considered as having laid-off that whole day.Lay-Offs
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49. Section 25M states that an employer of an Industrial Establishment employing 100 or more workmen on average per day in the preceding 12 months is required to obtain previous permission of specified authority appointed for the purpose by the Appropriate Government, by a notification by the official Gazette.
50. Section 25Q says any employer who contravenes the provision of Section 25M shall be punishable with imprisonment up to one month, or fine up to Rs.1000 or both.Lay Offs: Penalties
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53. It is not necessary that removal must be only when the establishment is in loss.
54. The Supreme Court has interpreted the term retrenchment in stricter sense of it, that is to say, it means termination of service for any reason whatsoever.
55. Retrenchment connotes in its ordinary acceptation that the business itself is being continued but that a portion of the staff of labour force is discharged a surplusage.
56. Where a worker suffers an accident during the course of employment making him unfit for the job, termination on this ground is illegal.
57. Where seasonal worker ceases to do work due to closure of season, it is not retrenchment.Retrenchment
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60. The LIFO (Last In First Out) Principle is mentioned in the Section 25G, which states that the workman who is employed last will be retrenched first.Retrenchment: Provisions & Rules
61. Section 25H gives a statutory right of reemployment to the retrenched workmen. If the employer wants to take the workmen in future, the retrenched workman has a right of preference over the others. This provides for preferential reemployment of the retrenched workmen. The employer should take precaution that he pays the retrenchment compensation at the time of retrenchment. In case the workman denies to accept compensation for the same, the employer should have sufficient proof that retrenchment compensation was offered to the workman, and clearly denied by him. Retrenchment: Provisions & Rules
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63. This establishment should not be of a seasonal character or in which work is performed only intermittently.
64. Section 25N specifies that no workman who is in continuous service for not less that one year under an employer shall be retrenched until-The workman has been given three months notice in writing indicating the reasons for retrenchment and the notice period has expired or the workman has been paid in lieu of such notice, wages for the period of notice. Notice in the prescribed manner has been given to the Appropriate Government and permission is granted. Retrenchment: Provisions & Rules
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69. If the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation payable to the workman shall not exceed his average pay for three months.
70. If an undertaking is set up for the construction off buildings, bridges, roads, canals, dams, or other construction work and it is closed down on account of completion of the work within 2 years from the date on which the undertaking is set up, then no workman employed by the undertaking shall be entitled to any compensation.
71. In case the construction work takes more that 2 years for completion after it is set up, then the workman will be entitled to both notice and compensation as per the rules of retrenchment.Closure: Rules & Provisions
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74. Copy of this application should also be served on the representatives of the workmen in the prescribed manner.
75. No such application to the Appropriate Government is required when the construction is the case of canals, bridges, buildings, etc.
76. Workmen shall be entitled to compensation in case of a legal closure, at the rate of 15 days wages for every completed year of continuous service.Closure: Rules & Provisions
77. Penalty for closure [Section 25R]:- Any employer who closes down an undertaking without complying with the provisions of Section 25-) shall be punishable with imprisonment up to six months or fine up to Rs.5000 or both. Penalty for closure without notice [Section 30A]:- An employer who closes down any undertaking without complying with the provisions of Section 25FFA shall be punishable with imprisonment up to six months or fine up to Rs.5000 or both. Any employer who contravenes an order refusing to grant permission to close down an undertaking under Section 25-O(2) shall be punishable with imprisonment up to one year, or fine up to Rs. 5000 or both. Where the contravention is continuing even then, with a further fine up to Rs.2000 for every day during which the contravention after conviction continues can be imposed. Closure: Penalties
78. Syndicate Bank V/s Umesh Nayak HELD:- The Supreme Court has observed that strike or lock-out is to be resorted to, only in unavoidable circumstances and to compel the other party to see the justness of the demands and is not intended to cause nuisance or physical danger to their employers or others. Hindustan Cables V/s Labour Court HELD:- Resorting to strikes or lock-outs without negotiations or conciliations is unjustified. Case Law Studies
79. Central India Spinning, Weaving & Manufacturing Co. Ltd., V/s State Industrial Court HELD:- The Bombay High Court said the key words “the failure, refusal, or inability of an employer” in the definition of lay-off make it clear that the unemployment has to be on account of a cause which is independent of any action or inaction on part of the workmen themselves. Morinda Co-op. Sugar Mills V/s Ramakrishnan HELD:- Where seasonal worker ceases to do work due to closure of the season it is not retrenchment. Case Law Studies
80. Introduction Applicability Important Definitions Rules relating to Payment of Wages Compensation & Penalties Case Law Studies The Payment Of Wages Act, 1936
88. The Act is applicable to any employee in a factory, employees of the railway industry, including those who are employed through a sub-contractor.
89. It is also applicable to employees working in any Industrial or Other Establishment, or any other Establishment stated under Sections [2(i)(a) to 2(i)(g)] of the Payment Of Wages Act.
90. The Act covers all those employees who draw a monthly salary of less than Rs.6500Applicability
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93. Any remuneration payable under any award or settlement between the parties or order of court; Any remuneration to which the person is employed is entitled in respect of overtime work, or holidays or leave period; Any additional remuneration payable (bonus); Any sum paid on the event of termination of employment; Any sum to which the a person is entitled under any scheme which is framed under a law currently in force. But, it does not include- Value of house accommodation, medical and other facilities, amenities and travelling, medical and other allowances; Contribution paid by the employer to any pension or provident fund; Any special expenses and gratuity paid at termination of employment. Important Definitions
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95. Every employer is responsible for the payment of wages but this responsibility is also cast on other persons; they are:In case of factories, the manager of the factory In case of an Industrial Establishment, the person in the post having control and supervision in the establishment In case of railways, the person nominated for the payment of wages In case of a contractor, the person designated by the contractor In any other case, the person designated by the employer as a person responsible for complying with the provisions of the Act. Rules relating to Payment of Wages
100. In case of a Factory or Industrial Establishment or Railways, wherein less than 1000 employees are employed, the wages shall be paid within 7 days after the expiry of the wage period.
101. In any other case, wages shall be paid before the expiry of the 10th day after the last day of the wage period.
102. In case of docks, wharfs, jetties and mines, wages are to be paid before the expiry of the 7th day on completion of final tonnage account of the material loaded or unloaded.
103. All payment of wages shall be made on a working day.Rules relating to Payment of Wages
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105. Under the Payment of Wages Act, wages cannot be paid in kind. They must be paid in current coins or currency notes or both.
106. The employer may, if he desires, after obtaining the written authorization of the employed person pay his wages either by cheque or by crediting the wages in the bank account.
108. The usual rule of the payment of wages is that the employed person shall be paid his wages without any kind of deductions except those authorized under this Act.
109. Thus, the Section 7 of this Act is critical.Rules relating to Payment of Wages
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111. While imposing such fine, the employer has to obtain prior approval from the Appropriate Government to the acts and omissions for which the fine many be imposed.
112. The employed person will be given a chance to show cause against imposing of the fine.
113. Fine cannot be recovered at a rate more than 3% of the total wages in the respective wage periods.
114. Fine cannot be imposed on a person below the age of 15 years.
116. Fine should be recovered within 3 months from the date of imposition of fine.Authorized Deductions
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118. The deduction may be for absence for a whole, or part of a day.
119. The deduction shall be in proportion to the time for which an employed person is absent from duty.
120. A person shall be considered as absent from duty, in case although present in the establishment,When he is absent from the place of work where he is required to be present and work, or When he refuses for any unreasonable cause, or In case of a stay-in-strike to carry out his work. Authorized Deductions
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122. The deducted amount shall not exceed the amount of the damage or loss caused to the employer.
123. The employer shall give an opportunity to the employee to show cause against the fine before making deductions.
124. Such deductions have to be recorded in the prescribed register and kept by the person responsible for payment of wages.Authorized Deductions
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126. House accommodation: Supplied by the employer or the Government or any housing board; such deductions cannot be made unless the employed person has accepted the amenity as term of employment and such deduction shall not exceed an amount equal to the value of actual house accommodation amenity.
127. Deductions for such amenities and service supplied by the employer ad the Appropriate Government may, by a general or special order authorize; these deductions can be made only when such supply is accepted as term of employment by the employed person.
128. The term ‘services’ does not include the supply of tools and raw materials, or protective measures required by nature of the employment.Authorized Deductions
139. In case of exceeds in limits of deductions, balance may be recovered in the manner prescribed by the Appropriate Government.Authorized Deductions
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141. The authorities include:Commissioner of Workmen’s Compensation, or Regional Labour Commissioner, or Assistant Labour Commissioner, Presiding officer of Labour Court or Industrial Tribunal, or Judicial Magistrate. Experienced Judge of a civil Court Remedy & Compensations
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143. Period: Such a claim is to be made within 12 months from the date on which the deductions were made, or from the date on which payment of wages was to be made.
144. Compensation: If the authority is satisfied that there were wrongful deductions, it may in addition to the refund of the amount wrongfully deducted require the employer to pay compensation not exceeding 10 times the actual amount of deductions.
145. In case of delayed wages, the employer may be directed to pay the wages immediately and also impose a penalty not exceeding Rs.3000, but not less than Rs.1500.Remedy & Compensations
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147. Introduction Important Definitions Fixation & Revision Of Wages Other Provisions Case Law Studies The Minimum Wages Act, 1948
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149. The justification for statutory fixation of minimum wages is clear form the following facts:
152. Continuous labour struggle demand for increase in wages, resistance to decrease in wages, and grant of benefits, allowances, etc.
153. The Act has been modified in the recent past to apply to all industrial establishments and their employees that are involved in any work or job that fits in the schedule to this Act, fitting the description of ‘Scheduled Employments’
154. The Act intends to prevent exploitation of labour and also has many provisions that ensure the minimum wages, wages for overtime, maximum duration of daily work & weekly day of rest.Intoduction
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164. Minimum Wages: Fixation & Revision When the Appropriate Government fails to revise the rates of Minimum Wages within 5 years, it can do so even after the expiry of 5 years as it feels necessary. Until the rates of Minimum Wages are revised, the rates of Wages before the expiry of 5 years shall continue to be in force. The Appropriate Government my not fix the rates of Minimum Wages in respect of any schedules employment in which there are less than 1000 employees engaged in the whole State. The Appropriate Government may fix rates of Minimum Wages which may be in the form of Minimum Rates for:- Time Work (Minimum Time Rate) Piece Work (Minimum Piece Rate) Remuneration; time work basis (Guaranteed Time Rate) Minimum rate in respect of overtime (Overtime Rate)
165. Sections [3-5] deal with the fixation and revision of Minimum Wages Section 3 says the Appropriate Government has powers to fix the Minimum Wages payable to the employees employed in any scheduled employment. Section 4 gives the content of Minimum Wages. Section 5 gives the procedure for fixing and revising the Minimum Wages. Section 12 says that it is absolutely necessary for an employer to pay every employee engaged in Scheduled employment in the Minimum Rates of Wages fixed by the Government without any deductions except those as may be authorized. Section 16 says that in case an employee does 2 or more classes of work to each of which a different Minimum Rates of Wages is applicable, the employer shall pay to such employee in respect of time occupied by Other Provisions
175. Introduction Important Definitions Authorities under the Act Payment & Provisions Nomination Case law Studies The Payment of Gratuity Act, 1972
176.
177. In many cases gratuity was given as a matter of favor.
178. Employees used to pay gratuity as a reward for long, continuous and meritorious service.
179. Various courts recognized the claim for gratuity and awarded gratuity schemes.
180. This custom of payment of gratuity became, in the later days, a matter of right for the employees.
181. With a view to ensure a uniform pattern of payment of gratuity to the employees throughout the country, the Central Government enacted the Payment of Gratuity Act.Introduction & Preliminary
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196. Family [Section 2(h)]: in relation to an employee, shall be deemed to consist of:Male Employees: Himself. His wife. His children (whether married or unmarried) His dependent parents. Dependent parents of his wife. Widow and children of his predeceased son, if any. Female Employees: Herself. Her husband. Her children (whether married or unmarried) Her dependent parents. Dependent parents of her wife. Widow and children of her predeceased son, if any. Nomination
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198. Family after nomination: If the employee acquires a family afterwards, such nomination becomes invalid. The employee shall make a fresh nomination within 90 days in favor of family members. Modification of nomination: Can be done by the employee at anytime, after giving a notice to the employer. Death of Nominee: If the nominee does before the employee, then employee shall make a fresh nomination. Safe custody of nomination: Every: Nomination Fresh nomination Alteration of nomination, as the case may be, shall be sent by the employee to the employer, who shall keep the same in his safe custody. Further, it shall take effect from the date of receipt by the employer. Nomination
199. Indian Hume Pipe Co. Ltd. V/s Workmen HELD:- The general principle underlying gratuity schemes is that by faithful service over a long period the employee is entitled to claim a certain amount as retirement benefit. Delhi Cloth and General Mills Ltd. V/s Workmen HELD:- The object of providing a gratuity scheme is to provide a retiring benefit to the workmen who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. Case Law Studies