The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labour.
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LABOUR LAW - II
1. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: EIGHTH Semester
Name of the Subject:
LABOUR LAW - II
Semester: EIGHTH Semester
Name of the Subject:
LABOUR LAW - II
UNIT-I
MINIMUM WAGES ACT 1948
2. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
MINIMUM WAGES ACT 1948
MINIMUM
WAGES ACT
1948
3. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour
law that sets the minimum wages that must be paid to skilled and unskilled
labour.
The Indian Constitution has defined a 'living wages' that is the level of income
for a worker which will ensure a basic standard of living including good health,
dignity, comfort, education and provide for any contingency. However, to keep
in mind an industry's capacity to pay the constitution has defined a 'fair wages'.
Fair wage is that level of wage that not just maintains a level of employment, but
seeks to increase it keeping in perspective the industry’s capacity to pay.
To achieve this in its first session during November 1948, the Central Advisory
Council appointed a Tripartite Committee of Fair Wage. This committee came
up with the concept of a minimum wages which not only guarantees bare
subsistence and preserves efficiency but also provides for education, medical
requirements and some level of comfort.
INTRODUCTION
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MAJOR COMPONENTS OF MINIMUM WAGES ACT
Consists of Fixed and Variable components
Fixed component has to be fixed within 5 years, but generally updated within
2-3 years.
Fixing variable components is not very regular.
Several criteria while fixing these components – food consumption, rent, cloth
requirement, fuel, lighting, children education, medical costs, recreation,
festivals, etc.
Different level of rates are fixed for different type of employments (as
specified in schedules), areas, different classes (skilled, unskilled, semi-skilled),
& even different rates for adolescents (above 14 but below 18), adults,
apprentices, etc.
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
IMPORTANCE OF MINIMUM WAGES
The intention of the Act obviously was to protect the sweated labour from being
deprived of minimum means required for maintenance of life and efficiency in a
reasonable condition. The unorganized labour, constitute more than 300 million in
India. The size of the unorganized labour is rapidly increasing with the present
Economic Policy pursued by the Government. With the initiation of liberalization,
there is an increasing shift in the Indian Industry on the labour front. In 1979, the
unorganized labour constituted 88% of the work force, but today it is nearly 93%.
This trend is due to mechanization, retrenchment, and conversion of full time jobs
into contract labour.
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Minimum wages have been defined as “the minimum amount of remuneration
that an employer is required to pay wage earners for the work performed during
a given period, which cannot be reduced by collective agreement or an
individual contract”. The purpose of minimum wages is to protect workers
against unduly low pay. They help ensure a just and equitable share of the fruits
of progress to all, and a minimum living wage to all who are employed and in
need of such protection. Minimum wages can also be one element of a policy to
overcome poverty and reduce inequality, including those between men and
women, by promoting the right to equal remuneration for work of equal value.
MEANING OF MINIMUM WAGES
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
1. Minimum Wage:
A minimum wage is a compensation to be paid by an employer to his workers
irrespective of his ability to pay. The Committee on Fair Wage’ has defined
minimum wage as “the wage must provide not only for the bare sustenance of life,
but for the preservation of the efficiency of the workers. For this purpose, minimum
wage must provide some measures of education, medical requirements and
amenities”.
2. Living Wage:
A living wage is one which should enable the earner to provide for himself and his
family not only the bare essentials of food, clothing and shelter but a measure of
frugal comfort including education for his children, protection against ill-health,
DIFFERENT TYPE OF WAGES
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requirement of essential social’ needs and a measure of insurance against the
more important misfortunes, including old-age. Thus, a living wage represents a
standard of living. A living wage is fixed considering the general economic
conditions of the country.
3. Fair Wage:
Fair wage, according to the committee on Fair Wage, is the wage which is above
the minimum wage but below the living wage. The lower limit of the fair wage
is obviously the minimum wage; the upper limit is set by the capacity of the
industry to pay. The concept of fair wage is essentially linked with the capacity
of the industry to pay.
4. Need-Based Minimum Wage:
The Indian Labour Conference in its 15th session held in July 1957 suggested that
minimum wage should be need based and should ensure the minimum human needs of
the industrial worker, irrespective of any other consideration.
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THEORY OF WAGES
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The Subsistence Theory of Wages:
The theory was formulated by physiocrats. According to them wages would be equal
to the amount just sufficient for subsistence. Lassale, a German economist
developed this theory. According to this theory, wages are determined by the cost of
production of labour or subsistence level. The wages so determined will remain
fixed.
It actual wages are higher than the subsistence level, then population will increase
leading to an increase in labour supply and lower wages. If on the other hand, the
actual wages fall below the subsistence level, population will decrease resulting in a
decline in labour supply and rise in wages. Since there is a tendency for the wages to
remain fixed at the subsistence level, it is called as Iron Law of Wages or Brazen
Law of Wages.
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2. Standard of Living Theory:
This theory is an improved and refined version of subsistence theory. According
to this theory, wage is determined by the standard of living of the workers.
Standard of living refers to the bare necessaries of life and also education, and
recreation to which the worker is habituated.
3. Wage Fund Theory:
This theory was developed by J.S.Mill. According to him, the employers set apart a
certain amount of capital to pay wages for labourers. This is fixed and constant. This
is called as wages fund. Wage is determined by the amount of wages fund and the
total number of labourers.
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4. Residual Claimant Theory:
This theory was propounded by Walker. According to this theory, rent and
interest are contractual payments. After deducting rent and interest from total
product, the employer will deduct his profits. What remains after deducting rent,
interest and profits is wages. It is possible to increase wages by increasing the
total product by improving the efficiency of the workers.
5. Marginal Productivity Theory:
Marginal productivity theory of wages is an extension of marginal productivity theory
of distribution. According to this theory, wage for labour should be equal to the value
of the marginal product under conditions of perfect competition. Marginal product is
the addition made to total product by the employment of one unit of labour. The value
of the marginal product of labour is equal to the price at which the marginal product
can
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be sold.
6. Discounted Marginal Productivity Theory:
Taussig has given a modified version of the Marginal Productivity theory of wages.
According to this theory, the wage for labour is determined not by its marginal
product but by the discounted marginal product. Labourers cannot get the entire
amount of the marginal product because production is a long drawn out process.
15. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: EIGHT Semester
Name of the Subject:
LABOUR LAW II
Semester: EIGHT Semester
Name of the Subject:
LABOUR LAW II
UNIT-II
PAYMENT OF WAGES ACT 1936
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THE PAYMENT
OF WAGES ACT
1936
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OBJECT AND SCOPE OF THE ACT
The main objects of the payment of wages Act are:
To make sure, regular and timely payment of wages to the employees,
To check unlawful deductions being made from wages and illogical fines being
imposed on the employed persons.
The scope of the Act extends to the whole of India.
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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PURPOSE OF THE ACT
The main objective of the Act is to avoid unnecessary delay in the payment of
wages and to prevent unauthorized deductions from the wages. Every person
employed in any factory, upon any railway or through sub-contractor in a
railway and a person employed in an industrial or other establishment. The State
Government may by notification extend the provisions to any class of persons
employed in any establishment or class of establishment. The benefit of the Act
prescribes for the regular and timely payment of wages (on or before 7th day or
10th day of after wage period is greater than 1000 workers) and Preventing
unauthorized deductions being made from wages and arbitrary fines.
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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MEANING OF WAGES
Generally speaking, the term 'Wage' means the remuneration paid by the
employer to his employee in return for the service rendered by the latter for the
former. According to 'Laissez fair’ policy - "Wage is a price paid to the worker
for the service he has sold to the employer"1. But according to the commodity
theory of labour" it is a compensation paid to the worker in return for the
contribution he makes for the achievement of objectives“
2. Marshall defines wages as "the rate of pay of common, unskilled labours.
The wage has been defined by the Payment of Wages Act, 1936 (as amended) as
remuneration in terms of money which would be payable on the basis of the contract of
the employment but which does not include the following:
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a. value of house accommodation, supply of light, water etc.
b. contribution by the employer to any pension fund or provident fund.
c. travelling allowance or value of any travelling concession,
d. any sum paid to defray special expenses, and
e. any gratuity payable on discharge unless payable under any law, contract of
instrument which does not provide for the time within which payment is to
be made.
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Section 3 : Responsibility for payment of wages
Every employer shall be responsible for the payment to persons employed by hi
m of all wages required to be paid under this Act.
The following persons shall also be responsible for the payment of wages:
(a) in factories, if a person has been named as the manager of the factory of the
Factories Act, 1948.
(b) in industrial or other establishments, if there is a person responsible to the E
mployer for the control of the industrial or other establishments; and
(c) upon railways (otherwise than in factories), if the employer is the railway ad
ministration and railway administration has nominated a person in this behalf
for the local area concerned.
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Section 4 : Fixation of wage-periods
It is required under that:
(1) Every person responsible for the payment of wages under section 3 shall fix periods
in respect of which such wages shall be payable.
(2) No wage-period shall exceed one month. Payment of wages can be made on daily,
weekly, fortnightly or monthly basis.
5.Time of payment of wages
(1) The wages of every person employed upon or in—
(a) any railway, factory or industrial establishment upon or in which less than one
thousand persons are employed, shall be paid before the expiry of the seventh day,
(b) any other railway, factory or industrial establishment, shall be paid before the
expiry of the tenth day, after the last day of the wage- period respect of which the
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(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
(2) Where the employment of any person is terminated by or on behalf of the employer,
the wages earned by him shall be paid before the expiry of the second working day
from the day on which his employment is terminated.
(3) The [State Government] may, by general or special order, exempt, to such extent
and subject to such conditions as may be specified in the order, the person responsible
for the payment of wages to persons employed upon any railway (otherwise than in a
factory) from the operation of this section in respect of the wages of any such persons
or class of such persons.
(4) All payments of wages shall be made on a working-day.
wages are payable.
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7. Deductions which may be made from wages
(1) Notwithstanding the provisions of sub-section (2) section 47 of the Indian
Railways Act, 1890, the wages of an employed person shall be paid to him
without deductions of any kind except those authorized by or under this Act.
Explanation.—Every payment made by the employed person to the employer or
his agent shall, for the purposes of this Act, be deemed to be a deduction from
wages.
(2) Deductions from the wages of an employed person shall be made only in
accordance with the provisions of this Act, and may be of the following kinds
only, namely:—
(a) fines;
(b) deductions for absence from duty;
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(c)deductions for damage to or loss of goods expressly entrusted to the
employed person for custody, or for loss of money for which he is required to
account, where such damage or loss is directly attributable to his neglect or
default;
(d) deductions for house-accommodation supplied by the employer;
(e) deductions for such amenities and services supplied by the employer as the
State Government may, by general or special order, authorize;
(f) deductions for recovery of advances or for adjustment of over-payments of wages;
(g) deductions of income-tax payable by the employed person;
(h) deductions required to be made by order of a Court or other authority competent
to make such order;
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(i) deductions for subscriptions to, and for repayment of advances from any
provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or
any recognized provident fund as defined in section 58A of the Indian Income-
tax Act, 1922 (11 of 1922), or any provident fund approved in this behalf by the
State Government, during the continuance of such approval;
(j) deductions for payments to co-operative societies approved by the State
Government or to a scheme of insurance maintained by the Indian Post Office;
(k) deductions, made with the written authorization of the employed person, in
furtherance of any War Savings Scheme, approved by the State Government, for
the purchase of securities of the Government of India or the Government of the
United Kingdom.
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SECTION 9 - DEDUCTIONS FOR ABSENCE FROM DUTY
(1)Deductions may be made under clause (b) of sub-section (2) of section 7 only
on account of the absence of an employed person from the place or places
where, by the terms of his employment, he is required to work, such absence
being for the whole or any part of the period during which he is so required to
work.
(2)The amount of such deduction shall in no case bear to the wages payable to
the employed person in respect of the wage-period for which the deduction is
made a large proportion than the period for which he was absent bears to the
total period, within such wage-period, during which by the terms of his
employment, he was required to work:
Provided that, subject to any rules made in this behalf by the
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State Government, if ten or more employed persons acting in concert absent
themselves without due notice (that is to say without giving the notice which is
required under the terms of their contracts of employment) and without
reasonable cause, such deduction from any such person may include such
amount not exceeding his wages for eight days as may by any such terms be due
to the employer in lieu of due notice.
Explanation.-For the purposes of this section, an employed person shall be
deemed to be absent from the place where he is required to work if, although
present in such place, he refuses, in pursuance of a stay-in strike or for any other
cause which is not reasonable in the circumstances, to carry out his work.
29. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: EIGHT Semester
Name of the Subject:
LABOUR LAW II
Semester: EIGHT Semester
Name of the Subject:
LABOUR LAW II
UNIT-III
FACTORIES ACT 1948
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FACTORIES ACT 1948
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SALIENT FEATURES OF THE FACTORIES ACT, 1948
Health Section 11 to 20 deals with the health of workers in the work place defining
the various parameters in maintaining the cleanliness, disposal of effluent, standard
of lightening, noise levels, latrines, etc.,
Safety Section 21 to 41 deals with the safety provisions. Fencing of machineries,
restriction of women and children in certain type of process, testing of pressure
plants, hoists and lifts, lifting machineries, chains, ropes and lifting tackles by
competent persons, appointment of safety officers etc., are explained.
Welfare Section 42 to 50 specifies the necessity for welfare of workers such as
washing facilities, first aid appliances, rest room, canteen, appointment of
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welfare officers, etc.,
Provision relating to Hazardous Process Section 41(A) to 41(H) deals various
special provisions for factories wherein hazardous process are carried on. Here
compulsory disclosure of information by the occupier to the workers as well as
to the public, permissible limit of exposure of chemicals and toxic substance,
workers participation in safety management etc, are prescribed.
Working Hours Section 51 to 66 handles the restriction of working hours such
as weekly hours, weekly holidays, compensatory holidays, night shifts, over
time, etc.,
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According to the Factories Act,1948 a '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 (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 this does not include a mine subject to the operation
of the Mines Act, 1952, or a mobile unit belonging to the armed forces of the
union, a railway running shed or a hotel, restaurant or eating place."
CONCEPT OF FACTORY
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Worker means a person employed ( directly or by or through any agency
including a contractor ), with or without the knowledge of the principal
employer, whether for remuneration or not in any manufacturing process or in
cleaning any part of the machinery or premises used for a manufacturing process
or in any other kind of work incidental to or connected with the manufacturing
process or the subject of the manufacturing process ( but does not include any
member of the armed forces of the Union )
CONCEPT OF WORKER AND OCCUPIER
Section 2(n) states that `occupier' of a factory means the person who has ultimate
control over the affairs of the factory; provided that:
i) in the case of a firm or other association of individuals, any one of the individual
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partners or members thereof shall be deemed to be the occupier;
ii) in the case of a company, any one of the directors, shall be deemed to be the
occupier;
iii) in the case of a factory owned or controlled by the Central Government, or
any State Government, or any local authority, the person or persons appointed to
manage the affairs of the factory by the Central Government, the State
Government or the local authority, as the case may be, shall be deemed to be the
occupier.
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To ensure the health, safety and welfare of all workers while they are at work in
the factory.
To provide and maintain the plant and systems of work in the factory that are
safe and without risk to health of the workers.
To provide arrangements in the factory for ensuring safety and absence of risk
to health in connection with the use, handling, storage and transport of articles
and substances
To provide such information, instruction, training and supervision as are
necessary to ensure the health and safety of all workers at work.
To maintain all places of work in the factory in a condition that is safe and
without risks to health and to provide and maintain such means of access to, and
GENERAL DUTIES OF OCCUPIER
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egress from, such places as are safe and without such risks.
To provide, maintain or monitor such working environment in
the factory for the workers that is safe , without risk to health
and adequate as regards facilities and arrangements for their welfare at work.
To provide a clean, well ventilated, well illuminated healthy working environment
to all workers, to provide adequate drinking water & facilities like latrines, urinals etc.
To maintain and monitor health of all workers by providing them a healthy clean,
dust/chemical free working environment, by providing them suitable personal
protective wears, by carrying out medical examination, by monitoring the work
environment etc.
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HEALTH AND SAFETY PROVISIONS UNDER THIS ACT
There are various measures under Factories Act 1948 which are taken by factories for
health, safety and welfare of their workers. Such measures are provided under Chapters
III, IV and V of the Act which are as follows:
Chapter III of the Act deals with the following aspects.
i) Cleanliness In The Factory
It must be seen that a factory is kept clean and it is free from effluvia arising
from any drain, privy or other nuisance.(Sec11)
Every occupier of a factory shall make effective arrangements for the treatment of
wastes and effluents due to the manufacturing process carried on in the factory so as to
) Disposal Of Waste And Effluents
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render them innocuous and for their disposal. Such arrangements should be in
accordance with the rules, if any, laid down by the State Government. If the
State
Government has not laid down any rules in this respect, arrangements made by
the occupier should be approved by the prescribed authority if required by the
State Government. (Section 12)
(iii) Ventilation And Temperature -
Section 13 provides that every factory should make suitable and effective provisions
for securing and maintaining :-
adequate ventilation by the circulation of fresh air; and
such a temperature as will secure to the workers reasonable conditions of comfort
and prevent injury to health. What is reasonable temperature depends upon the
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(iv) Dust And Fume
circumstances of each case. The State Government has been empowered to lay down
the standard of adequate ventilation and reasonable temperature for any factory or class
or description of factories or parts thereof. It may direct that proper measuring
instruments at such places and in such position as may be specified shall be provided
and prescribed records shall be maintained.(sec 13)
There are certain manufacturing processes like chemical, textile or jute, etc., which
generates lot of dust, fume or other impurities. It is injurious to the health of workers
employed in such manufacturing process. Following measures should be adopted in
this respect:
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•Effective measures should be taken to prevent the inhalation and accumulation
of dust, fumes etc., in the work-rooms.
•Wherever necessary, an exhaust appliances should be fitted, as far as possible, to the
point of origin of dust fumes or other impurities. Such point shall also be enclosed as
far as possible.
•In cases of other internal combustion engine, effective measures should be taken to
prevent the accumulation of fumes there from.(sec14)
(V) Artificial Humidification
Humidity means the presence of moisture in the air. In certain industries like cotton,
textile, cigarette, etc., higher degree of humidity is required for carrying out the
manufacturing process. For this purpose, humidity of the air is artificially increased.
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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Section 15 empowers the State Government to make rules
(i) prescribing the standards of humidification, (ii) regulating methods to be adopted for
artificially increasing the humidity of the air, (iii) directing prescribed tests for
determining the humidity of the air to be correctly carried out, and recorded, and (iv)
prescribing methods to be adopted for securing adequate ventilation and cooling of the
air in the work-room.There are other provision like lighting,drinking water etc.
This increase or decrease in humidity adversely affects the health of workers.
43. Chanderprabhu Jain College of Higher Studies & School of Law
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(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: EIGHT Semester
Name of the Subject:
LABOUR LAW II
Semester: EIGHT Semester
Name of the Subject:
LABOUR LAW II
UNIT-IV
THE EMPLOYEE’S COMPENSATION ACT
1923
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THE EMPLOYEE’S
COMPENSATION ACT 1923
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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
OBJECTS AND AIMS OF THE ACT:
(1) To compensate a workman incapacitated by an injury from accident.
(2) To make efforts on prevention of accidents, giving workmen greater
freedom from anxiety and rendering industry more attractive.
(3) Protection of workmen, as far as possible, from hardship arising from
accidents.
(4) The main object of the Act is to impose legal obligation on the employers to
pay compensation to workmen involved in accidents while working in the
premises.
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(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
DEFINITIONS UNDER WORKMEN'S COMPENSATION ACT
Dependant: Section 2(d) gives a list of persons who come within the category of
"dependant" of a workman. In ordinary language the dependant of a person is one who
lives on his earnings. Under Section 2 (d) there are three categories of dependants.
1. The following relations are dependants, whether actually so or not-widow, minor
legitimate son, unmarried legitimate daughter, a widowed mother.
2. The following relations come within the category if any were wholly dependant
on the earnings of the deceased workman at the time of his death-a son or
daughter who has attained the age of 18 years and who is infirm.
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3. The following relations are dependants if they were wholly or partially so at the
time of the workman's death-widower; parent, other than widowed mother, minor
illegitimate son, unmarried illegitimate daughter or a daughter legitimate or
illegitimate if married and a minor or if widowed and a minor, a minor brother or
an unmarried sister or widowed sister if minor, a widowed daughter-in-law, a
minor child from a predeceased son, a minor child from a predeceased daughter
where no parent or child is alive, or a paternal grandparent if no parent of the
workman is alive.
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Employer: Sec. 2( e) provides that the term Employer "includes" the following:
(i) anybody of persons, whether incorporated or not (ii) any managing agent of
an employer (iii) the legal representatives of a deceased employer, and (iv) any
person to whom the services of a workman are temporarily lent or let out, while
the workman is working for him. Thus the word ‗employer‘ includes not only
natural persons, and body of persons, but artificial and legal persons
Partial Disablement: Disablement, in ordinary language, means loss of capacity to
work or move. Such incapacity may be partial or total and accordingly there are
two types of disablement, partial and total. In the Act both types of disablement are
further subdivided into two classes, temporary and permanent.
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By Section 2 (g) Temporary Partial Disablement means such disablement as
reduces the earning capacity of a workman in any employment in which he was
engaged at the time of the accident, and Permanent Partial Disablement means
such disablement as reduces his earning capacity in every employment he was
capable of undertaking at that time.
Total Disablement: According to Section 2(1) (g), total disablement means such
disablement, whether of a temporary or permanent nature, as incapacitates a
workman for all work which he was capable of performing at the time of the
accident resulting in such disablement, provided that permanent total disablement
shall be deemed to result from the permanent total loss of the sight of both eyes or
from any combination of injuries specified in Schedule I, where the aggregate
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percentage of the loss of earning capacity as specified in that schedule against those
injuries, amounts to one hundred per cent. If a Carpenter‘s left hand above elbow is
amputated as a result of a personal injury suffered in the course of his employment,
it is total disablement because a carpenter cannot work with one hand.
Workman: The definition of the term workman is important because only a person
coming within the definition is entitled to the reliefs provided by the Workmen's
Compensation Act.
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EMPLOYER’S LIABILITY FOR COMPENSATION
An employer is liable to pay compensation if personal injury is caused to a workman
by accident arising out of and in the course of his employment. An employer is not
liable in following cases: Injury which does not result in total or partial disablement
of workman for a period exceeding 3 days.Injury caused by an accident directly
attributable to workman under influence of drinks or drugs, willful disobedience of
express orders for safety, willful removal of safety guard or device. [Even if such
case, if the workman dies or suffers permanent total disablement, the employer will
be liable]
52. Chanderprabhu Jain College of Higher Studies & School of Law
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LIABILITY FOR COMPENSATION
In order to attract section 3 (1) of the Act, following three conditions must be fulfilled
(a) personal injury;
(b) accident; and
(c) arising out of and in the course of employment.
In order to succeed in an application for getting compensation under section 3 of the
Act the following points are required to be established
(1) that the accident must arise out of and in the course of the workman‘s employment;
(2) there must be causal connection between the injury and the accident and the work
done in the course of the employment;
(3) the workman has to say that while doing a part of his duty or incidental thereto it
has
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into an accident. resulted It is necessary that the workman must be actually
working at the time of the injury or the accident. Therefore, the three factors,
that there must be injury, which must be caused in an accident, it must be caused
in the course of and out of the employment must be established.
Meaning of the expression “arising out of employment”
(i) The expression ―arising out of employment means that there must be casual
relationship between the accident and the employment. If the accident has
occurred on account of risk which is an incident of employment, it has to be
held that the accident has arisen out of the employment.
(ii) The words ―out of employment is not limited to mere nature of the‖
employment but it (arising out of employment) applies to its nature, its
conditions and obligations and its incidents. An accident which occurs on
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account of a risk, which is an incident of employment, then the claim
for compensation can succeed provided the workman has not exposed
himself to an added peril by his own imprudent act.
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Section 4 of the Act prescribes the amount of compensation payable under the
provisions of the Act. Amount of compensation payable to a workman depends
on:
1)The nature of the injury caused by accident.
2)The monthly wages of the workman concerned, and
3)The relevant factor for working out lump-sum equivalent of compensation
amount as specified in Schedule IV (as substituted by Amendment Act of 1984).
Compensation payable under the Act
There is no distinction between an adult and a minor worker with respect to the
amount of compensation.
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Section 4, provides for compensation for:
1)Death;
2)Permanent total disablement;
3)Permanent partial disablement; and
4)Temporary disablement – total or partial.
57. Chanderprabhu Jain College of Higher Studies & School of Law
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