It `s prepared by me to help the social work students to get pass in UGC-NET,JRF exam. this document briefly about acts related to HR for Social Workers.pdf

1. Today’s Learning
Prepared by:
P.Raghu M.S.W, M.Phil, Ph.D Scholar, NIMHANS, Bangalore.
Mobile: 80981 92628
1) The Factories Act 1948 consolidating and amending the law relating to labour in factories,
was passed by the Constituent Assembly on August 28, 1948. The Act received the assent of
Governor General of India on 23 September 1948 and came into force on April 1, 1949.
2) The main objectives of the Indian Factories Act, 1948 are to regulate the working conditions
in factories, to regulate health, safety welfare, and annual leave and enact special
provisions in respect of young persons, women and children who work in the factories.
3) This Act is applicable to any factory 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.
4) The Factories Act, 1948 is a beneficial legislation. The aim and object of the Act is
essentially to safeguard the interests of workers, stop their exploitation and take care of
their safety, hygiene and welfare at their places of work.
5) Changes made in Factories Act, 1948in 2016. The Factories (Amendment) Bill, 2016
The Factories Act 1948 was an Act of Parliament passed in the United Kingdom by the Labour
government of Clement Attlee. It was passed with the intention of safeguarding the health of
workers and was adopted by India.
6) The Maternity Benefit Act of 1961 protects women's employment at the time of their
maternity. It entitles women employees to ‘maternity benefit’, which is fully paid wages
during the absence from work and to take care of her child.
7) The Act applies to establishments employing 10 or more employees. The Maternity Benefit
Act 1961 has been amended through the Maternity (Amendment) Bill 2017, passed in the
Lok Sabha on March 09, 2017.
8) The provisions of the Maternity Benefit (Amendment) Act, 2017 (“Amendment Act”) came
into effect on April 1, 2017, and the provision about the crèche facility (Section 111 A) came
into effect with effect from July 1, 2017.
9) a) Duration of leave: A woman is entitled to twelve weeks of maternity leave under the terms
of the Act, not more than six weeks of which may come before the due date.

2. b) Job protection: According to the guidelines of the 1961 Act, it has been ruled unlawful for
an employer to fire or let go of a woman at any time during or because of her absence.
c) Remuneration during leave: Women who meet the requirements for maternity leave
outlined in the legislation are entitled to maternity benefits at the rate of the average daily salary
for the time that they are really absent from work.
d) Financial benefits: According to this law, every woman is entitled to maternity benefits and
the option of receiving a medical bonus from her employer in the event that neither prenatal nor
postpartum care is provided by the latter at no cost to the employee.
10) The Minimum Wages Act, 1948 was brought into force by the Parliament of India in order
to provide due remuneration to the workers and to prevent unfair exploitation of the
workers by the employers.
11) The Act lays down the minimum rates of wages and fixing of minimum wage rates for
both skilled and unskilled labour and aims to provide a decent standard of living for them.
12) In 1948 a tripartite committee, known as the ‘Committee on Fair Wages’ was established.
Three kinds of wages namely:
Minimum wage: This is the type of wage provided for bare subsistence so that the workers can
maintain a decent standard of living such as providing for education, medical requirements and
an adequate level of comfort.
Fair wage: Any wage paid to the employees that are more than the minimum wage is known as
a fair wage. It is the wage that seeks to maintain a level of employment in the industry and also
looks after the industry’s capacity to pay sufficient remuneration to the employees.
Living wage: A living wage not only meets the minimum requirement of the employees
provided by the employers but also allows individuals or families to afford adequate shelter,
food, and other necessities. It also includes health, sanity, education, dignity, comfort, and
provide for any contingency.
13) The main objective behind minimum wages of the workers should be primarily because of
two reasons:
Social objective: Minimum wage is essential for abolishing poverty by providing a basic
standard of living to the employees.
Economic objective: The rate of minimum wage should be fixed in such a way that would
motivate the workers to put in maximum efforts at their jobs and thus improve the economy of
the country and their standard of living.
14) Under Section 18 of the Minimum Wages Act, 1948 every employer will be liable to
maintain registers and records relating to the number of employees employed under him,

3. the work done by them, the wages paid to them, the work performed by them, maintain the
receipts given by the employers and any other relevant information.
15) The payment of Bonus Act, 1965 aims to regulate the amount of bonus to be paid to the
persons employed in establishments based on its profit and productivity. The act is
applicable to the whole of India for all establishments which had twenty or more persons
employed on any day during the year.
16) Any employee is eligible for availing bonus if the following conditions are satisfied:
a) The employee receiving salary or wages up to Rs.21,000 per month
b) The employee engaged in any work whether skilled, unskilled, managerial, supervisory etc.
c) The employee who have worked not less than 30 working days in the same year.
17) Bonus is considered as “reward” or any additional payment made to their monthly
remuneration, given by the employer to the employee in any establishment. The basic
objective to give the bonus is to share the profit earned by the organisations amongst the
employees.
18) The Minimumbonus will be provided 8.33% of the salary during the year, or one hundred
rupees will be given in case of employees above 15 years and sixty rupees in case of employees
below 15 years, whichever is higher. The maximum bonus is 20% of salary during the
accounting year.
19) The Act does not apply to the following classes of employees:
Employees employed in
a) Life Insurance Corporation of India
b) Industry carried on or under the authority of any department of Central Government or a State
Government or a Local Authority.
c) Indian Red Cross Society or any other institution of like nature including its branches;
Universities and other educational institutions;
Hospital, Chambers of Commerce and Social Welfare Institutions established not for purposes
of profits; employed through contractors on building operations;
Reserve Bank of India;
Industrial Finance Corporation of India, Deposit Insurance Corporation and other financial
corporations being set up financially assisted by the Government, and Unit Trust of India,
Agricultural Refinance Corporation, and Industrial Bank of India,
Seamen as defined in Sec.
20) Under the Payment of Gratuity Act 1972, employers pay gratuity amounts to their
employees as a token of appreciation for their contributions to the company. It is a
monetary benefit provided to employees engaged in mines, factories, plantations, oilfields,
ports etc., after retirement.

4. 21) Under the Gratuity Act, only an employer pays a gratuity amount to an employee.
Employers may either choose to pay the sum from their account. Else, they can opt for a
general insurance provider. A company deposits the annual contribution with an insurance
provider. In return, it pays the payable gratuity amount to an employee based on policy
guidelines.
22) General Rules
a. Gratuity Act mandates that employees qualify to receive gratuity payment after completing
5 years of service in a company
b. Employers must pay a gratuity amount to their employees on their superannuation and
resignation or retirement.
c. The maximum gratuity payment that an employee can receive is ₹20,00,000. Thus, payments
above ₹20,00,000 is a voluntary payment and not forced by law.
23) Taxation rules for gratuity:
a. Government Employees – Employees working in government (central/state or local) enjoy
tax exemption on gratuity.
b. Private Employees – Employees working under an employer who is covered under the
Gratuity Act, the tax exemption is applicable for the least of the following:
1. ₹20,00,000
2. The Actual Gratuity Amount
3. Eligible Gratuity
24) Nomination:- In case of death, the gratuity is payable to any of the following persons:
Nominee Heirs (in absence of nomination) In case nominee/ heir is a minor, such amount will
be deposited with the controlling authority who shall invest the same for the benefit of such
minor in such bank or other financial institution, as may be prescribed, until such minor attains
majority.
25) Equal Remuneration Act, 1976, means the law that prohibits discrimination by
employers between women and men in terms of wages and other terms of employment.
26) No employer shall pay less remuneration or reduce the rate of remuneration of the
workers of opposite gender performing the same work or work of similar nature.
27) Section 5 states that there shall be no discrimination while recruiting men and women
workers.
28) a)Remuneration – Remuneration means the basic wage or salary and any additional
emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of
employment or work done in such employment, if the terms of the contract of employment,
express or implied, were fulfilled.

5. b) Same work or Work of a similar nature – Same work or Work of a similar nature means
work in respect of which the skill, efforts and responsibilities required are the same, when
performed under similar working conditions, by a man or a woman and the differences, if any,
between the skill, effort and responsibility required of a man and those required of a woman are
not of practical importance in relation to the terms and conditions of employment.
29) Workmen's compensation act 1923, An Act to provide for the payment by certain classes
of employers to their workmen of compensation for injury by accident.
30) The Act is applicable only to those workmen working in industries as specified in the
Act. The Act affords protection to a workman from losses or injury caused by accident
arising out of and in the course of employment subject to certain exceptions as laid down in the
Act.
31) When the employer is not liable to pay compensation:
a) If the injury does not end in the entire or partial disablement of the employee for a period
exceeding three days.
b) If the injury, not leading in death or permanent total disablement, is caused by an accident
which is directly attributable to:
The employee having at the time of the accident is under the influence of drink or drugs.
The willful disobedience of the employee to an order if the rule is expressly given or expressly
framed, for the purpose of securing the safety of employees; or
The willful removal or disregard by the employee of any safety guard or other device which has
been provided for the purpose of securing the safety of employees.
32) When the Employer is liable to pay compensation:
a) Casual connection between the accident and the injury (which is personal injury is caused to
a workman while he/she is on work).
b) The probability is based on the reason that work has contributed because of personal injury.
c) The accident and injury that is caused during the employment course.
d) The applicant who proves that the accident or injury occurred during work and its results
strain that has aggravated or contributed to the injury.
33) The Employees State Insurance Act 1948 by the Parliament was the first major social
security legislation for workers in India.
34) The ESI Act 1948 covers certain health-related incidents the workers are exposed to, such
as maternity, sickness, permanent or temporary disablement, or death due to employment injury,
which can result in the loss of earning capacity.
35) Benefits of ESI act:

6. a) Medical Benefit- medical care will be given to the person and his family members.
b) Maternity Benefit- for pregnancy is payable for 26 weeks as well under the ESI Act 1948.
c) Sickness Benefit- it will be given in the form of cash compensation at the rate of 70 percent
of wages.
d) Dependants Benefit- this is paid in the form of monthly payments to the dependants in cases
where the death occurred due to occupational hazards or employment injury.
e) Disablement Benefit-
Temporary disablement benefit (TDB) at the rate of 90% of wage is payable so long as the
disability continues.
f) Permanent disablement benefit (PDB) is paid at the rate of 90% of wage in the form of
monthly payments. It depends on the extent of the loss.
Other Benefits are:
1) Funeral Expenses
2) Physical Rehabilitation
3) Old Age Medical Care
4) Confinement Expenses
5) Vocational Rehabilitation
36) The Employees State Insurance applies to the factories and other establishments institutions
where 10 or more persons are employed. However some states, the limit is 20.
Under section 1(5) of the Employees State Insurance Act 1948, the ESI scheme has been
extended to hotels, shops, cinemas, and restaurants, including road-motor transport,
preview theatres and newspaper establishments where employees are 10 or more.
under section 1(5) of the Employees State Insurance Act 1948, the ESI scheme has been
extended to educational institutions and private medical employing more than 10 or more
persons.
37) Employees Provident Fund is established in 1952 and hence the act is named as Employees
Provident Fund & Miscellaneous Provisions Act, 1952, which extend to the whole of India
except Jammu & Kashmir.
38) Provident fund is a welfare scheme for the benefits of the employees. Under this scheme
both the employee & employer contribute their part but whole of the amount is deposited
by the employer. Employer deducted the employee share from the salary of the employee. The
interest earned on this investment is also credited in pf account of the employees. At the time of
retirement, the accumulated amount is given to the employees, if certain conditions are satisfied.
39) It is applicable:
a) Every factory engaged in any industry specified in Schedule 1 in which 20 or more persons
are employed.

7. b) Every other establishment employing 20 or more persons or class of such establishments
which the Central Govt. may notify.
c) Any other establishment so notified by the Central Government even if employing less than
20 persons.
40) Types of Provident Fund :
Statutory Provident Fund (SPF)
Public Provident Fund (PPF)
Recognized Provident Fund (RPF)
Unrecognized Provident Fund (URPF).
41) Benefits of EPF:
a) Employees can take advances or make withdrawals.
b) PF amount of a deceased member is payable to the nominees or legal heirs.
c) The employer not only contributes towards the PF but also makes the necessary contributions
towards the employee’s pension, which can be used by the employee post-retirement.
d) Exempt tax benefit under the Income Tax Act enables tax-free returns for the employees.
e) Employees receive special benefits in the form of added income to their savings in the form
of interest.
f) PF account can be transferrable if any member changes employment from one
establishment to another where such Provident Fund scheme is applicable.
42) The Industrial Disputes Act, 1947 is the primary legislation governing dispute resolution
in India. It was enacted to provide for the investigation and settlement of industrial disputes,
to prevent illegal strikes and lockouts, to provide relief to workmen during lay-off or after
retrenchment or wrongful dismissal.
43) This Act was passed was with a key objective of “Maintenance of Peaceful work culture
in the Industry in India” which are mentioned under the Statement of Objects & Reasons of
the statute.
The Act also lays down:
a) The provision for payment of compensation to the workman on account of closure or lay
off or retrenchment.
b) The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments.
c) The actions to be taken against unfair labour practices on part of an employer or a trade
union or workers.
44) The causes of industrial disputes include disparity in wages, disputes between the labour
Union and the Industry, unfulfillment or disregard of the rights of the labour, etc.

8. 45) The Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods and services
irrespective of the number of workmen employed therein.
Every person employed in an establishment for hire or reward including contract labour,
apprentices and part-time employees to do any manual, clerical, skilled, unskilled,
technical, operational or supervisory work, is covered by the Act.
46) The act provides for the following authorities for the Investigation and Settlement of
industrial disputes:
(i) Works Committee
(ii) Conciliation officer
(iii) Boards of Conciliation
(iv) Court of Inquiry
(v) Labour Court
(vi) Labour Tribunals
(vii) National Tribunals
47) The Trade Unions Act, 1926 (Erstwhile Indian Trade Unions Act) defines the term
‘Trade Union’ as any combination, whether temporary or permanent, formed primarily for the
purpose of regulating the relations between workmen and employers or between workmen
and workmen or between employers and employers, or for imposing restrictive conditions
on the conduct of any trade or business, and includes any federation of two or more trade unions.
48) Main Objectives are:
Representation of collective stand and power of collective bargaining have been important
for the growth of a stable working population across several economies. This has also
contributed in workers securing better wages, job security, and improvement in working
conditions, more equitable sharing of the wealth created by them
Continuity and support to stated policy has lent stability to the industrial production, and
for the protection of the interest of both the workers and investors or industrialists.
49) Functions of a Trade Union:
The important basic functions of unions listed by the National Commission are:
To secure fair wages to workers.
To safeguard security of tenure and improve conditions of service.
To improve opportunities for promotion and training.
To improve working and living conditions.
To provide for educational, cultural and recreational facilities.
To co-operate and facilitate technological advancement e by broadening the understanding of
workers on its underlying issues.

9. To promote identity of interests of workers with their industry.
To offer responsive co-operation in improving levels of production and productivity, discipline
and high standards of quality and
To promote individual and collective welfare.
50) The Child Labour (Prohibition and Regulation) Act of 1986 designates a child as a
person who has not completed their 14th year of age. It aims to regulate the hours and the
working conditions of child workers and to prohibit child workers from being employed
in hazardous industries.
51) The Act in total prohibits approximately 13 occupations and 51 processes for the
employment of children. Article 24 of the Indian Constitution includes the provision for the
prohibition of employment of children in factories.
52) When an employer employs a child or permits a child to work in contravention of the
provisions of Section 3, the employer shall be liable for punishment with imprisonment for
a term which may extend to one year or with fine and the fine imposed shall not be less
than rupees ten thousand and which may extend to rupees twenty thousand or with both.
53) Ban on child labour– An entire ban on the child labour has been imposed except of the
following two case-
Children are allowed to assist in the family enterprise given that their work is done after
school hours or during the vacation period. Also, the activity should not involve hazardous
processes.
Children are allowed to advertise in audio visual businesses as long as their education and
health are not compromised.
54) The best way to prevent the issue of child labour :
Making more stringent laws, spreading awareness, discouraging people from employing
children for domestic work, supporting NGOs working towards this and sending more children
to school could be the best ways to prevent child labour.
Main causes of child labour :
Poverty is the major cause of child labour in both urban and rural areas because when the family
goes into poverty, the financial resources decrease. To earn money and fulfil the needs of the
family, the children are forced into child labour.